New Stock Preview| Will Wenzhen Traditional Chinese Medicine seize the opportunity in Hong Kong stocks, can the growth narrative of Traditional Chinese Medicine + AI support the facade?

Currently, China has entered a deeply aging society, with a large population of elderly people. In the era of deepening aging, the importance of the elderly industry is becoming increasingly prominent. In response to the aging medical demand, in recent years, relevant departments have issued a number of policies to address aging-related medical needs, with traditional Chinese medicine being one of the key focus areas. At a time when traditional Chinese medicine is thriving, some companies in the industry that have achieved good development performance are beginning to look towards the capital market. Just recently, Wenzi Traditional Chinese Medicine once again submitted its listing application to the main board of the Hong Kong Stock Exchange. According to the prospectus, based on revenue from AI-assisted services, Wenzi Traditional Chinese Medicine has been the largest AI-assisted traditional Chinese medicine service provider in mainland China for two consecutive years, with a market share of approximately 1.3% in 2024. Established in 2018, Wenzi Traditional Chinese Medicine has built a comprehensive traditional Chinese medicine business layout over the years, fully meeting customer needs ranging from disease treatment, health maintenance to learning and practicing traditional Chinese medicine. Looking at the trend of performance changes, it also indicates that the company's operations are gradually improving. From 2022 to 2024, the company's revenue has increased rapidly from 62.169 million yuan to 236 million yuan. In view of the scarcity of high-quality traditional Chinese medicine resources domestically, the imbalance between supply and demand has led to a large unmet demand. Whether Wenzi Traditional Chinese Medicine's innovative solutions can shine brightly under these circumstances remains to be seen and is worth looking forward to. Capitalizing on the "fast track" of AI-assisted traditional Chinese medicine services AI-assisted traditional Chinese medicine medical services refer to traditional Chinese medicine diagnostic and treatment services assisted by an intelligent diagnostic and treatment system based on artificial intelligence technology. This type of service allows AI-based systems to extract insights from the diagnostic experience and professional knowledge of senior traditional Chinese medicine practitioners and a wealth of knowledge from traditional Chinese medicine classics, providing standardized and intelligent clinical decision support and guidance to traditional Chinese medicine practitioners. In my opinion, traditional Chinese medicine and AI have a natural compatibility. In essence, the core of traditional Chinese medicine is experiential inheritance, with generations of medical practitioners accumulating diagnostic and treatment logic through medical cases. Similarly, the essence of AI's machine learning is to extract patterns from data, with both following the path of "input-pattern matching-output optimization." In addition, traditional Chinese medicine emphasizes "treating the same disease differently" and "treating different diseases similarly," showcasing its flexibility and personalized characteristics, which complement AI's technological features. AI's data processing and pattern recognition capabilities can amplify the individualized diagnostic and treatment advantages of traditional Chinese medicine, enhancing the efficiency of diagnosis and treatment. From this perspective, GMTEight believes that Wenzi Traditional Chinese Medicine, established less than ten years ago, has indeed found a good track. Looking at the company's performance, it also confirms this. Data shows that from 2022 to 2024, Wenzi Traditional Chinese Medicine's revenue was 62.169 million yuan, 189 million yuan, and 236 million yuan, respectively. In the first five months of this year, the company's revenue reached 100 million yuan, showing growth compared to the same period last year. Breaking down the structure, Wenzi Traditional Chinese Medicine's revenue is mainly divided into three major categories. Traditional Chinese medicine medical services are the company's largest source of revenue, contributing 81.1%, 88.5%, and 89.6% of revenue in 2022-2024, respectively. During the same period, revenue from traditional Chinese lifestyle products accounted for 9.8%, 7.2%, and 6.3%, while revenue from traditional Chinese brain subscription services accounted for 9.1%, 4.3%, and 4.1%, respectively. Comp... (Youve reached the character limit. Please let me know if you would like me to continue.)