New stock news | Wen Zhizhong Traditional Chinese Medicine once again submits an application to the Hong Kong Stock Exchange as the largest provider of artificial intelligence-assisted traditional Chinese medicine medical services in mainland China.

According to the disclosure by the Hong Kong Stock Exchange on July 29, WenZhi Chinese Medicine has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with Haitong Int'l as the exclusive sponsor. The company had previously submitted forms to the Hong Kong Stock Exchange on January 9, 2025. The prospectus shows that, based on artificial intelligence assisted revenue, WenZhi Chinese Medicine is the largest provider of artificial intelligence assisted traditional Chinese medicine medical services in mainland China in 2023 and 2024, with market shares of 1.5% and 1.3% respectively. Artificial intelligence assisted traditional Chinese medicine medical services refer to diagnostic and treatment services provided by intelligent diagnostic systems based on artificial intelligence technology in traditional Chinese medicine. These AI systems draw insights from experienced TCM practitioners and traditional Chinese medicine classics to provide standardized and intelligent clinical decision support for TCM practitioners. The market for artificial intelligence assisted traditional Chinese medicine medical services accounted for 1.4% of the overall traditional Chinese medicine medical service market in mainland China in 2024. WenZhi Chinese Medicine has established a comprehensive layout in the field of traditional Chinese medicine, catering to clients' needs for disease treatment, healthcare, and learning and practicing traditional Chinese medicine. During the previous period, the company generated revenue through (i) traditional Chinese medicine medical services, (ii) traditional Chinese lifestyle products (including various health products and knowledge products), and (iii) subscription services for traditional Chinese medicine knowledge. According to the prospectus, the traditional Chinese medicine medical service industry in mainland China is highly fragmented. Despite the enormous potential for development and integration, there are pain points at both ends of supply and demand. On the supply side, traditional Chinese medicine medical services rely heavily on scarce and experienced traditional Chinese medicine practitioners. As of 2024, mainland China had only about 760,000 licensed TCM practitioners, with less than 5% being senior TCM practitioners, which is insufficient to meet the huge demand. In addition, the salaries of traditional Chinese medicine practitioners account for a significant proportion of the total costs of TCM medical institutions. WenZhi Chinese Medicine has independently developed the TCM Artificial Intelligence Assisted Diagnostic System - TCM Brain, equipped with the largest clinical knowledge graph in the traditional Chinese medicine medical service industry in mainland China. As of the last feasible date, the company's TCM Brain is the first and only traditional Chinese medicine artificial intelligence assisted diagnostic system to undergo consistent clinical research in a Grade A tertiary hospital and be reviewed by experts from the China Academy of Traditional Chinese Medicine Information. WenZhi Chinese Medicine has established the Jingyi Academy, which, as of May 31, 2025, is the largest registered traditional Chinese medicine community in mainland China, attracting a large number of TCM practitioners and enthusiasts by sharing ancient and contemporary TCM classics and original TCM content. By sharing rich TCM knowledge, Jingyi Academy not only promotes traditional Chinese medicine culture but also enhances the company's brand awareness and market position. This approach has attracted a group of community members who understand the principles and benefits of traditional Chinese medicine, laying a solid foundation for word-of-mouth referrals for the company's medical products. Financially, for the fiscal years 2022, 2023, 2024, the five months ending May 31, 2024, and the five months ending May 31, 2025, WenZhi Chinese Medicine achieved revenues of 62.169 million yuan, approximately 189 million yuan, approximately 236 million yuan, 89.848 million yuan, and approximately 100 million yuan, respectively, while incurring losses of approximately 1.54 billion yuan, approximately 1.94 billion yuan, approximately 453.67 million yuan, approximately 23.86 million yuan, and approximately 438.41 million yuan.