Good News on Listing | Frost & Sullivan Assists Yunzhihong Intelligent Technology Co., Ltd. to Successfully List on the Hong Kong Stock Exchange (9678.HK)

Yunzhi Sound Intelligent Technology Co., Ltd. (hereinafter referred to as 'Yunzhi Sound') successfully went public on June 30, 2025. The company plans to issue 1.56098 million H shares, of which 90% will be for international sale, 10% for public sale, and an additional 15% will be underwriters' rights. The maximum offering price per share is HK$205.00, raising a net amount of approximately HK$320 million.

During the process of listing on the Hong Kong Stock Exchange this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support and highlight the issuer's competitive advantages, assisting the issuer, investment banks and other intermediaries in completing the relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business and other important chapters), helping the issuer complete communication with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange, etc.

According to LiveReport's big data (statistical data as of June 30, 2025), from January to June 2025, as well as during the past 12 and 36 months, Frost & Sullivan provided listing industry advisory services to 29 (71%), 60 (67%) and 164 (69%) Hong Kong-listed IPOs respectively, boasting rich industry experience and communication skills with exchanges and investors.

• The company is one of the earliest in Asia to commercialize large language models with AI;

   

• The company is one of the first to apply deep learning algorithms to speech recognition products and continues to promote the commercial application of advanced AI algorithms such as Convolutional Neural Networks (CNN), Generative Adversarial Networks (GAN), and Reinforcement Learning (RL);

   

• The company's AI language large model, Shanhai Large Model, ranks among the top tier of global large models, first in science ability domestically and second in liberal arts ability domestically;

   

• The AI solution market in China is expected to grow from 180.4 billion yuan in 2024 to 1,174.9 billion yuan in 2030, with a compound annual growth rate of 36.7%. The market prospects are broad.

According to the Frost & Sullivan report, in terms of revenue for 2024:

• It is the fourth-largest AI solution provider in China, growing the fastest among enterprises with annual revenues exceeding 500 million RMB;

   

• Ranked third among AI solution providers living in China, and fourth among providers of medical AI services and solutions.

AI solutions are automated analysis AI programs that are available at any time, capable of generating accurate and meaningful insights to address new business trends and customer needs. AI solutions can be deployed through hardware, software, or cloud computing services.

Driven by continuous changes in economic growth and customer needs, China's AI solutions market increased from RMB 422 billion in 2019 to RMB 1804 billion in 2024, with a compound annual growth rate of 33.7%. It is expected that by 2030, the market will reach RMB 1174.9 billion, with a compound annual growth rate of 36.7% from 2024 to 2030.

The AI solution market can be categorized based on supplier type, mainly including AI solution providers (mainly offering machine learning-based AI solutions), traditional digital solution providers, and system integrators. Among them, AI solution providers have a greater advantage in technology research and development, which is more conducive to maintaining market competitiveness and driving business expansion. Compared with traditional digital solution providers, AI solution providers benefit from a wide range of AI models and in-depth industry and customer coverage, enabling them to innovate across domains and create more competitive and diversified cross-industry vertical fields. This allows AI solution providers to easily expand their solutions and integrate them with customers' devices, fostering an open and rapidly developing ecosystem and further strengthening their connection with customers.

The AI solution market in China is highly fragmented, with the company ranking fourth among Chinese AI solution providers in 2024, holding a market share of 0.6%.

Each company develops AI solutions in specific vertical industry domains, applying AI technologies including interactive AI, computer vision, and data science. These solutions combine AI technologies such as interactive AI, computer vision, and data science with industry-specific expertise. These solutions include: (1) Internet of Things (IoT): The IoT, also known as the Internet of Sensors, is an interconnected system composed of sensors, processing capabilities, software, and other technologies that transmit data over networks without human intervention. IoT AI solutions combine AI analysis capabilities with data collection through the IoT to strengthen workflows and risk management. (2) Healthcare: Healthcare AI services and solutions mainly consist of healthcare service AI, disease diagnosis and treatment AI, pharmaceutical R&D AI, and other emerging solutions empowered by AI. (3) Other Industries: AI solutions are applied in other industries such as finance, retail, education, agriculture, telecommunications, and energy.

Life AI solutions are the most prominent area in the IoT AI industry, and there is hope that they will further drive the growth of the IoT AI solution market in the foreseeable future. AI solution providers compete with traditional digital solution providers, such as existing life AI solution providers and cloud-based solution providers. Different solution providers may have unique competitive advantages in terms of technical infrastructure, operating systems, or downstream applications.

The market scale of life AI solutions provided by Chinese AI solution providers has increased from RMB 3 billion in 2019 to RMB 105 billion in 2024, with a compound annual growth rate of 28.9%. It is expected to reach RMB 1496 billion by 2030, with a compound annual growth rate of 41.0% from 2024 to 2030.

The company ranked third among China's life AI solution providers in 2024, with a market share of 5.8%.

Data sources: Public information, expert interviews, Frost & Sullivan analysis

Medical AI services and solutions mainly include: (i) Medical services and treatment AI, involving (a) Medical service AI and (b) Disease diagnosis and treatment AI; (ii) Drug R&D solution AI; and (iii) Other AI-enabled new solutions. Specifically, medical service AI is one of the main areas with potential in optimizing medical procedures, improving diagnostic and treatment quality, and ensuring efficient hospital management.

The market scale of medical AI services and solutions in China increased from RMB 1.1 billion in 2019 to RMB 9.9 billion in 2024, with a compound annual growth rate of 54.3%. By 2028, the market for medical AI services and solutions in China is expected to reach RMB 146.5 billion, with a compound annual growth rate of 56.6% from 2024 to 2030. Among them, the market scale of medical AI services and solutions in China increased from RMB 1.1 billion in 2019 to RMB 9.5 billion in 2024, with a compound annual growth rate of 55.0%. The market for medical services and treatment AI solutions is expected to reach RMB 138.2 billion, with a compound annual growth rate of 56.3% from 2024 to 2030. The market scale of Chinese providers of medical services and treatment AI solutions with machine learning capabilities increased from RMB 200 million in 2019 to RMB 6 billion in 2024, with a compound annual growth rate of 90.7%, and is expected to reach RMB 113 billion in 2030, with a compound annual growth rate of 63.2% from 2024 to 2030.

Data sources: Public information, expert interviews, Frost & Sullivan analysis

Medical service and treatment AI providers may leverage their technical capabilities and medical expertise to make breakthroughs in the depth and breadth of medical knowledge graphs, which are the foundational technology for all business segments under medical AI services and solutions. This consolidates their ability to continuously develop and innovate AI for medical service and treatment solutions.

In 2024, the company ranked fourth in the Chinese medical services and treatment AI market, with a market share of 2.3%.

Data sources: Public information, expert interviews, Frost & Sullivan analysis

The expected progress in computing power, modeling methods, data quality, and scale will shape the future of AI, driving the development of more intelligent, interactive, and powerful AI systems. The improvement in computing power, such as potential breakthroughs in more powerful GPUs and quantum computing, can enhance the ability to build stronger AI at lower costs. The exponential growth of global data volume and the commercialization of 5G technology will provide sufficient datasets for training AI algorithms, diversifying training to improve accuracy and achieve broader applications of AI. In addition, the evolution of deep learning methods has driven progress in AI models, improving performance and accuracy in various AI-related fields. For example, the recent launch of AGI systems has fundamentally changed the AI solutions market. It demonstrates AGI's ability to surpass human capabilities, foresee and respond to challenges in economically valuable tasks, and apply its knowledge to different environments.

AI technology can improve data processing efficiency by standardizing the analysis process of massive data of different types, qualities, and sources. Therefore, it has been widely applied in various industries to help enterprises reduce costs and improve efficiency. Due to the high efficiency and decision accuracy brought by AI technology in automated repetitive tasks, it is increasingly being adopted in fields such as financial investment and medical diagnosis.

The growth in AI solution demand has received further support from favorable government policies. As part of its strategic tasks, the Chinese central government has implemented AI industry development plans and incentives. For example, the 'Three-Year Action Implementation Plan for Internet + Artificial Intelligence' aims to support the development of neural network chips to promote the application of AI technology in China. The 'Guidelines for the Construction of a National New Generation Artificial Intelligence Standard System' emphasizes the demand for AI standards in key industries such as manufacturing and transportation, planning to initially establish a national AI standard system by 2023. The 'Several Measures for Promoting the Innovative Development of General Artificial Intelligence in Beijing' focus on building general AI capabilities (including large language models) and promoting the application of general AI capabilities in various industries (such as healthcare).

Frost & Sullivan, with 64 years of global consulting experience and 27 years of dedicated service to the booming Chinese market, uses a global perspective to help clients accelerate their business growth, achieving benchmark positions in industry growth, innovation, and leadership. The health industry is one of the core areas of focus for Frost & Sullivan. Over the past 20-plus years, the Frost & Sullivan team has provided financing and financial advisory, IPO industry advisory, strategic consulting, and management consulting services to hundreds of outstanding domestic and international biopharmaceutical, medical device, healthcare services, and internet healthcare companies. Successful listings include: Baiseng Medical (2609.HK), Yajie Ankang (2617.HK), Jiangsu Hengrui Medicine (1276.HK), Mire (2629.HK), Ying'en Biotech (9606.HK), Weisheng Pharmaceutical (2561.HK), Yasheng Medicine Group (NASDAQ:AAPG), Zhengye Biotech (NASDAQ:ZYBT), Brain Motion Aurora (6681.HK), Health Road (2587.HK), Huahao Zhongtian (2563.HK), Yinosi (688710.SH), Jingtai Technology (2228.HK), Yimai Sunshine (2522.HK), Shenghe Biotech (2898.HK), Quanxin Biotech (2509.HK), Meizhong Jiahé (2453.HK), WuXi AppTec (2268.HK), Anol Medical (NASDAQ:ANL), Neusoft Xikang (9686.HK), Youzhiyou (2496.HK), Yiming Angke (1541.HK), Corning Biotech (6990.HK), LaiKai Medicine (2105.HK), Kedi Group (2487.HK), Lüzhú Biotech (2480.HK), Meis Health (2415.HK), PHECR, Zhongjin Medical (NASDAQ:ZJYL), Yisheng Biotech (NASDAQ:YS), Meili Tianyuan (2373.HK), Kangfeng Biotech (6922.HK), Bao'an Biotech (6955.HK), Sida Di (1244.HK), Meihao Medical (1947.HK), Gaoshi Medical (2407.HK), Lepu Xintai (2291.HK), Jianshi Technology (9877.HK), Health Yuan (JCARE.SW), Lepu Medical (LEPU.SW), Dingdang Health (9886.HK), Biorad (2315.HK), Zhiyun Health (9955.HK), MeinGene (6667.HK), PRE.NASDAQ, Yunkang Group (2325.HK), Rike Biotech (2179.HK), Lepu Biotech (2157.HK), Clear Medical (1406.HK), Baxin An'an (2185.HK), Yonghe Medical (2279.HK), Kailai Ying (6821.HK), Beihai Kangcheng (1228.HK), Gusheng Tang (2273.HK), Yingpeng Technology (2251.HK), Clover Biotech (2197.HK), Minimally Invasive Robotics (2252.HK), Harmony Kamman (2256.HK), Kunbo Medical (2216.HK), Xianruida (6669.HK), Kangsheng Global (9960.HK), Yimai Tong (2192.HK), Tengsheng Bopai (2137.HK), Canopy (2162.HK), Chaoyu Ophthalmology (2219.HK), Guichuang Tongqiao (2190.HK), Hehuang Medicine (0013.HK), Koi Pharmaceutical (2171.HK), Zhaoke Ophthalmology (6622.HK), Nature's Pharmacy (UPC.NASDAQ), Saiseng Pharmaceutical (6600.HK), Zhaoyan New Drugs (6127.HK), Novogene Health (6606.HK), ADAG.NASDAQ, Beikang Medical (2170.HK), Jianbimiao Miao (2161.HK), Minimally Invasive Xin Tong (2160.HK), Rui Li Medical Beauty (2135.HK), Jiaosisi Pharmaceutical (1167.HK), Hepbrium Medical (2142.HK), JD Health (6618.HK), Deqi Pharmaceutical (6996.HK), Rongchang Biotech (9995.HK), WuXi Juenuo (2126.HK), Siasun Pharmaceutical (2096.HK), Yunding Newray (1952.HK), Jiahe Biotech (6998.HK), Zai Ding Pharmaceutical (9688.HK), Ocular Biotech (1477.HK), Yongtai Biotech (6978.HK), Hapu Pharmaceutical (9989.HK), Kepeng Pharmaceutical (9939.HK), Peijia Medical (9996.HK), Kangfang Biotech (9926.HK), Nuo Cheng Jianhua (9969.HK), Tianjing Biotech (IMAB.NASDAQ), Kanglong Chemical (3759.HK), China Antibody (3681.HK), Dongyao Pharmaceutical (1875.HK), Yasheng Medicine (6855.HK), Fuhong Hanlin (2696.HK), Hansoh Pharmaceutical (3692.HK), Mabot Pharmaceutical (2181.HK), Fangda Holdings (1521.HK), Via Biotech (1873.HK), CStone Pharmaceuticals (2616.HK), Junshi Biosciences (1877.HK), WuXi AppTec (2359.HK), Xinda Biotech (1801.HK), Hailong Medicine (2552.HK), BeiGene (6160.HK), Gilead Sciences (1672.HK), WuXi Biotech (2269.HK), China Resources Pharmaceutical (3320.HK), Yacogen Scientific & Pharmaceutical (2633.HK), HCM.NASDAQ, Biotech (1548.HK), BBI Life Sciences (1035.HK), Tongyuan Kang Medicine (2410.HK), etc. In terms of the number of listed projects, the Frost & Sullivan healthcare team maintains an absolute leading position in Hong Kong healthcare IPOs, consistently ranking first in market share from 2018 to 2023.

Since the listing of the first batch of companies on the Sci-tech Innovation Board (STAR Market) in July 2019, Frost & Sullivan reports have been widely cited in the prospectuses of leading STAR Market-listed companies in the industry, including: Hanbang Technology (688755.SH), Zhongyan Shares (688716.SH), Optoelectronics Technology Group Co., Ltd. (688450.SH), Jinghe Integration (688249.SH), Wuxi Rilian (688531.SH), Maolai Optics (688502.SH), Kangwe Century (688426.SH), Jinkang Protein (688137.SH), Novogene Biologics (688428.SH), Aopuima Biotechnology (688293.SH), MicroPort Electrodiagnostics (688351.SH), Mengke Pharmaceutical (688373.SH), Yifang Biotechnology (688382.SH), Jicui Pharmaceutical (688046.SH), Haichuang Pharmaceutical (688302.SH), Rongchang Biotechnology (688331.SH), Rendu Biotechnology (688193.SH), Shouyao Holdings (688197.SH), Heyuan Biotechnology (688238.SH), Yaxin Security (688225.SH), Xidi Micro (688173.SH), Mawei Biotechnology (688062.SH), Yahong Medicine (688176.SH), BeiGene (688235.SH), Jiahe Meikang (688246.SH), Dizhe Medicine (688192.SH), Novozyme (688105.SH), Chengda Biotechnology (688739.SH), Geke Micro (688728.SH), Huaxi Biotechnology (688363.SH), Junshi Biotechnology (688180.SH), Zhejiang Genomics & Biotechnology Co., Ltd. (688266.SH), BeiGene (688177.SH), Shenzhou Cells (688520.SH), etc., are considered to be one of the most powerful, professional, and influential industry research institutions in the industry. We hope to work with enterprises to understand industry trends, seize development opportunities, jointly promote innovation and upgrading of China's big health industry, and build a healthy future.