New Stock Preview | Third-party SPD leader Guoyi Technology: Strong fundamentals, early investors have already made substantial profits

In 2025, the number of births in China hit a historical low, while the aging population continued to rise. According to the population data from 2024, the proportion of people over 60 years old has reached 22%, indicating a serious aging population trend that is driving the expansion of the healthcare market. According to Frost & Sullivan's data, in 2024, China's total healthcare expenditure reached a staggering 9.76 trillion yuan, maintaining a stable high single-digit growth. The traditional supply chain model of hospitals is facing serious operational efficiency issues and information silos, making it a long way to achieve the goal of "Healthy China 2030". SPD's solution provides an innovative supply chain model that can optimize supply chain issues. As the leader in China's third-party SPD solution market, Guoyi Technology has submitted to the Hong Kong Stock Exchange for IPO. It has been learned that Guoyi Technology recently submitted its application for listing on the main board of the Hong Kong Stock Exchange, with HAITONG INT'L Capital Limited as its sole sponsor. The company generates revenue primarily through the SPD solution and in-hospital IDS solution businesses. According to Frost & Sullivan, based on 2024 revenue, the company ranks first in China's largest third-party SPD solution provider with a 29.2% market share. The company has shown considerable performance in the past two years. From 2024 to September 2025, the revenue was 378 million yuan and 306 million yuan respectively, with year-on-year growth of 52.4% and 21.9% respectively. The profits fluctuated with net profits for shareholders of 50 million yuan and 32 million yuan respectively, with year-on-year growth of 994% and -16.7%, and net profit margins of 13.23% and 10.46% respectively. By November 2025, the company had cash and cash equivalents of 184 million yuan. So, does Guoyi Technology have potential and is its IPO worth watching? The company was founded in 2016, initially launching a pilot SPD solution project with the First Affiliated Hospital of the University of Science and Technology of China (also known as Anhui Provincial Hospital). The market gradually penetrated into several tertiary hospitals in Shandong and Zhejiang, and in 2024, it started the in-hospital IDS solution business with years of customer accumulation. Currently, the company's revenue comes from the SPD solution and in-hospital IDS solution. SPD solution is the core source of revenue, with IDS solution testing in 2024 but with less than ideal commercial effects. In 2024 and until September 2025, the revenue from the SPD solution business was 371 million yuan and 301 million yuan, with revenue shares of 98.2% and 98.5% respectively. The SPD solution provided by Guoyi Technology is an integrated service that includes SPD software systems, intelligent hardware, and on-site professional services. Revenue mainly comes from service fees, which are calculated as a percentage of the total transaction value of medical supplies through the SPD solution, with service fee rates ranging from 1-3%. The company achieved commodity turnover of 26.27 billion yuan and 22.455 billion yuan respectively in 2024 and until September 2025, maintaining double-digit growth rates. The service fee rates were relatively stable at 1.26% and 1.28% respectively. It is worth noting that the target customers of the SPD solution are hospitals. By the first three quarters of 2025, the company covered 116 hospitals, an increase of 10 from the end of 2024, including primary, secondary, and tertiary hospitals, with 91 tertiary hospitals accounting for a high 78.4%. The company has a low customer concentration, with the top five customers contributing 25% of revenue in the first three quarters of 2025, and the largest customer contributing only 5.7%. In addition, Guoyi Technology's in-hospital IDS solution business generated revenue in 2024, mainly designing, developing, and producing Automated Mobile Robots (AMR) and supporting software for automatic transport of hospital supplies. The company's AMR can automatically charge, forming an intelligent all-day efficient hospital logistics network. The business results are expected to take time to release, mainly due to the adoption of a research and development outsourcing model, appointing third-party research and development partners to develop the autonomous mobile robot & automation in the in-hospital IDS solution, with uncontrollable factors and low investment, with an investment of only 1.2 million yuan until September 2025. In terms of profitability, the gross profit margin fluctuated but showed an overall upward trend. From 2023 to September 2025, the company's gross profit margin was 37.1%, 41.8%, and 38.8% respectively. The SPD solution business contribution made up 100% of the gross profit margin, with gross profit margins of 37.1%, 41.5%, and 38.7% respectively during the period. In terms of expenses, various expense ratios improved in the first three quarters of 2025, with the core management expense ratio decreasing by 2.59 percentage points to 10.34%. With the combined effect of increasing gross profit margins and optimized expense ratios, Guoyi Technology maintained profitability from 2023 to September 2025, with adjusted net profits of 12 million yuan, 58 million yuan, and 43 million yuan respectively. However, the company has a high proportion of receivables, with receivables of 220 million yuan as of September 2025, accounting for 72% of revenue, and a substantial amount of interest-bearing liabilities, with short-term liabilities of 144 million yuan and long-term liabilities of 222 million yuan, totaling 366 million yuan, accounting for 37.74% of total assets and 2.8 times the cash and cash equivalents, indicating tighter liquidity. In terms of the industry outlook, according to Frost & Sullivan, the market size of the SPD solution in China was 181.5 billion yuan in 2024, with a compound annual growth rate of 58.1% in the past five years, expected to reach 1.0574 trillion yuan by 2029, with a compound growth rate of 42.3%. However, the market size of the third-party SPD solution is relatively small, reaching 1.1 billion yuan in 2024, expected to reach 9.6 billion yuan by 2029, with a compound growth rate of 53.3%, accounting for less than 1% of the overall market. The third-party SPD solution market in China is highly concentrated, with the top five players accounting for approximately 51.7% of the market share based on 2024 revenue. Guoyi Technology ranked first with approximately 29.2% market share, 21.2 percentage points higher than the second position. With years of market accumulation, the company has a significant market presence in the industry. From the demand side, the SPD solution primarily optimizes the hospital's supply chain model, with the core demand group being hospitals. According to Frost & Sullivan, as of 2023, there were 13,252, 11,946, and 3,855 first, second, and tertiary hospitals respectively in the country, with the penetration rate of the SPD solution in tertiary hospitals reaching approximately 36.1% in 2024, and expected to reach 90% by 2029. The penetration rate of the third-party SPD solution is low, but with the development of AI technology, it brings a competitive advantage to the third-party providers, presenting significant market opportunities. As a leading company in the industry, Guoyi Technology served 1, 24, and 91 first, second, and tertiary hospitals respectively as of September 2025, indicating a large market space to explore and potentially benefit from the industry's high growth. The company has also garnered favor from various capital sources, with multiple rounds of financing from 2018 to 2025, attracting investments from Binhu National University Science Park, Xinli Capital, Qianhai Investment Entity, Anhui Provincial Railway Fund, and other diverse capital sources. However, with multiple rounds of financing, the company's valuation has continued to rise, with the latest round (C2) post-investment valuation at 1.914 billion yuan, providing substantial returns to primary market investors, with a 33.8 times increase in valuation from the angel round, 7.7 times increase from Series A, and 2.19 times increase from Series B, although the C1 round valuation at the end of 2024 only increased by 2.3%. In conclusion, Guoyi Technology's IPO has certain potential. On one hand, the revenue continues to grow, the SPD solution business possesses strong industry competitiveness, the customer base is expanding, and the industry has high growth prospects with a low penetration rate for third-party SPD solutions. On the other hand, the company has a strong profitability, with an upward trend in gross profit margins, and as the revenue scale increases, there is still room for improvement in overall profitability. However, there are also risks for Guoyi Technology, such as the small industry scale, relatively single business focus, high proportion of receivables, and high interest-bearing debt levels. Although the company has a prestigious reputation, with high valuations from multiple rounds of financing, early investors have profited significantly. Therefore, the market may be cautious towards the company's IPO.