NAYO Biotechnology IPO Prospectus: Customers Value 'Automation Value,' Not Just 'Automation'

In recent years, China’s industrial automation market has experienced robust growth against the backdrop of the manufacturing sector’s transformation and upgrading, providing support for the development of the domestic laboratory automation industry. According to data from Mordor Intelligence, the global laboratory automation market was valued at approximately USD 6.23 billion in 2024 and is projected to reach USD 8.66 billion by 2029, representing a compound annual growth rate (CAGR) of 6.82% during the forecast period (2024–2029).

Currently, different laboratory scenarios are at varying stages of automation. Based on the degree and scale of automation, laboratory automation can be categorized into four stages: single-instrument automation, workstation-based automation, track-based automation, and intelligent automation. However, this does not represent a purely linear progression of comprehensive replacement; rather, different product formats are matched to customer needs based on cost requirements, throughput demands, and specific research and clinical requirements.

From the perspective of user needs, Luo Junkui, founder of Naiyou Bio, also stated, “In the field of laboratory automation, it is not the ‘high-end’ products in terms of functionality that meet customer demands; rather, the core lies in the stability, consistency, and ease of use of basic products. I believe that ensuring the fundamental performance of domestic products meets or even surpasses that of imported alternatives should be the key focus for China’s laboratory automation industry at present.”

Naiyou's Global Layout

As a leading domestic manufacturer of laboratory automation equipment, NaeU Biotech was established in 2016 and has been dedicated to the field of laboratory automation for nearly a decade. Headquartered in Shanghai, China, the company operates a R&D and production base spanning approximately 10,000 square meters in Changshu, Jiangsu Province. Through its branch offices in Beijing, Chengdu, and Guangzhou, as well as its service center in the United States, NaeU Biotech has built an efficient operational network covering R&D, manufacturing, marketing, and services. Furthermore, as an Original Equipment Manufacturer (OEM) with core design and manufacturing capabilities, NaeU Biotech specializes in custom-developing high-quality automated instruments and component solutions to meet diverse needs for automated sample pre-processing applications.

Founder Luo Junkui, a technical veteran with nearly 20 years of experience in the R&D and industrialization of precision instruments, holds an unexpected view: “‘Process’than ‘technology’more important”.

“Most of the technologies in the life sciences automation industry are mature industrial technologies. Therefore, at both the industrial and commercial levels, ‘process’ often holds more decisive value than ‘technology.’ At this stage, domestic manufacturers should not overly pursue ‘showing off technical prowess’ or ‘innovation’ to develop new technologies; instead, it is more important to solidly build high-quality basic products and establish a strong reputation. The automation industry is essentially a tool industry, and the general development trend for tool industries is better quality, higher efficiency, and greater ease of use. Thus, meeting or even surpassing the basic performance standards of imported products is a more important current development goal for domestic manufacturers,” explained Luo Junkui to VCBeat.

Naiyou Bio is a practitioner of this philosophy.From the perspective of industrial processes, Naiyou Bio has already accumulated numerous "advantageous manufacturing processes." For instance, consider the flexible sealing design of electric pipette tips. While this design offers reliable sealing and minimizes leakage, it initially suffered from a short service life. To overcome this challenge, the R&D team spent 18 months, underwent six rounds of mold optimization, and invested millions of yuan, ultimately increasing the tip loading/unloading cycle life from over 20,000 to 300,000 cycles, while achieving sealing performance comparable to that of top-tier imported brands.And this is merely one of the many “advantageous processes” accumulated by Naiyou.

“For professional clients with prior experience, what they truly need is not ‘automation,’ but ideal experimental results. By continuously refining processes to ensure that users’ final test results are safe, accurate, reliable, and traceable, Naiyou Bio has established its ‘differentiated advantage’ in the minds of customers,” summarized Luo Junkui.

Currently, Naiyou Biotech’s product portfolio encompasses five major categories: liquid handling platforms, integrated instruments, integrated modules, proprietary application products, and consumables. By establishing a platform-based technological architecture that integrates pipetting platforms, motion control platforms, software platforms, and robotic platforms, the company achieves digital process monitoring of its products, thereby significantly enhancing their ease of use.

NAYO Flexible Platform Products

In terms of specific product portfolio strategy, Naiyou Biology adopts a focused approach: concentrating its core strengths on a limited number of application scenarios. Currently, the company’s automated products are primarily centered on sample pre-processing. Leveraging flexible platform technology, it has launched a series of products, including the A8 mini fully automated pipetting platform, the N96S 96-channel fully automated pipetting platform, the A8 pro fully automated liquid handling workstation, and the A96 96-channel fully automated liquid handling workstation. These products offer numerous advantages, such as supply chain security, cost-effectiveness, reliable and stable results, short delivery lead times, and ease of operation.

In terms of supply chain and costs,Naiyou Bio has enhanced the localization rate of its core modules through in-house R&D and manufacturing, with the current localization rate approaching 100%. This further ensures the security and stability of the supply chain while reducing equipment development costs.

In terms of the reliability and stability of product results,For large-scale laboratories, equipment failure at any stage can have significant consequences, leading not only to the loss of individual samples but also potentially disrupting the normal operation of the entire system. Naiyou Bio has focused its R&D efforts on the continuous optimization and upgrading of its products to ensure their stability and reliability.It is worth noting that in the fields of blood sample pre-processing and NGS processing equipment, Naiyou Bio is one of the few companies in the industry committed to developing fully closed-loop servo systems and providing products for comprehensive monitoring of the entire sample processing workflow.

Modular Design Meets Diverse Needs

In terms of delivery cycle,Naiyou Bio flexibly meets customer needs through modular design, significantly shortening product delivery cycles. Luo Junkui told VCBeat, “While the detailed requirements for laboratory automation equipment vary, the foundational structural needs are similar. The traditional non-standard customization model involves a complex and time-consuming process, spanning from requirements analysis and solution design to component machining, prototype assembly, and final delivery acceptance. In contrast, the modular design platform adopts limited customization to shorten delivery cycles. It not only enables flexible combination and upgrading of modular components based on customer requirements, thereby significantly reducing product development cycles, but also allows rapid adaptation to market changes and diverse application scenarios. For instance, by leveraging an innovative ‘sandwich’ combination model featuring a wide variety of robotic arms, diversified on-deck functional modules, and a flexible platform architecture, Naiyou Bio has reduced the time required to provide solutions to customers from the original three months to under 30 days.”

Furthermore, in the product development process, Naiyou Biotech prioritizes not only safety, reliability, and product quality but also ensures that its products are easy to learn and convenient to operate.For instance, the proprietary software developed by Naiyou Biology makes pipetting operations on each device intuitive and user-friendly. The platform supports an unlimited number of experimental protocols, allowing users to edit workflows independently with automatic saving. Its built-in database of common consumables and diverse pipetting modes enable users to add or define new consumables at any time, precisely position tips, and accurately calculate and freely adjust aspiration/dispensing depth and angle, significantly reducing workflow editing time. Furthermore, the software’s logical self-check feature provides real-time alerts and solutions for errors encountered during experimental protocol editing.

Leveraging these advantages, Naiyou Biotech’s product applications have rapidly expanded beyond traditional healthcare settings into fields such as agriculture and scientific research. Its client base includes domestic pharmaceutical companies like Innovent Biologics, GenScript, Chia Tai Tianqing, Tasly, and WuXi AppTec; in vitro diagnostic (IVD) companies such as MGI Tech, Revvity, KingMed Diagnostics, and Sansure Biotech; agricultural and livestock enterprises including Longping High-Tech, Bioready, Huazhi Biotechnology, Zoetis, and Win-all Hi-tech Seed; as well as government agencies such as China Customs, the Ministry of Public Security, the National Health Commission, and the Chinese Center for Disease Control and Prevention. Currently, Naiyou Biotech’s services cover more than 6,000 clients across all 31 provinces in China, with annual sales surpassing RMB 100 million as early as 2020.

A8 Mini Automated Liquid Handling Platform Tool

As the capabilities of domestic automated equipment manufacturers continue to strengthen, Naiyou Bio has expanded its presence to more than 10 overseas countries and regions, including Singapore, Europe, and the United States, in pursuit of greater market growth. Over the past two years, the majority of the company’s revenue has been generated from overseas clients.

Recently, Naiyou Bio has made new progress in its global expansion, with its compact automated liquid handling platform, the A8 mini, successfully entering overseas markets and gaining recognition from international customers. The core value of the A8 mini lies in condensing powerful laboratory automation capabilities into an exceptionally compact chassis (665 mm L × 532 mm W × 610 mm H), enabling it to operate within a standard Class II Biological Safety Cabinet (BSC). This provides a critical safety barrier for key processes requiring high-level containment, such as cell culture and pathogen sample pre-processing.

In terms of flexibility,The A8 mini platform features a modular quick-release design: users can select robotic arms with different pipetting module configurations for self-assembly based on specific application requirements. Ranging from fixed 8-channel to flexible 4-channel pipetting modules, all options provide full-volume coverage from 1 to 1000 μL. Precise pipetting across micro to macro volumes is achieved simply by changing the corresponding tips, eliminating the need to replace modules and significantly enhancing efficiency; an innovative built-in pressure sensor enables reliable liquid level detection, ensuring aspiration accuracy.

In terms of operability,The A8 mini comprehensively covers a wide range of laboratory workflow requirements. Its proprietary software features an intuitive, streamlined interface with drag-and-drop protocol design, empowering users to easily execute core liquid handling tasks such as precise sample transfer, reagent addition, complex gradient dilutions, reaction setup, and mixing/resuspension.

In terms of safety and stability,The A8 mini is compatible with a self-developed on-deck functional module, enabling plug-and-play operation via reserved interfaces without the need for an additional controller. The force-controlled gripper can intelligently adjust its gripping force based on the weight of consumables, effectively preventing bending or slippage of items such as microplates and deep-well plates during handling. The servo system features force feedback technology,Detect Liquid Aspiration Fault、Instantly triggers warning alerts, providing technical assurance and a worry-free experience for experimental workflows.

Comprehensive Coverage of Diverse Experimental Workflows

Overall, by perfectly combining powerful features—such as rich configuration options, compact size, and self-assembly capabilities—with user-friendly design, the A8 mini has emerged as an ideal automated solution for enhancing experimental efficiency, result reproducibility, and operational safety in fields including genomics, cell biology, proteomics, drug development, and clinical diagnostics.

Behind the design philosophy of the A8mini lies Naiyou Biotech’s global expansion strategy.Luo Junkui told VCBeat, “Overseas users are highly professional and place significant emphasis on intellectual property rights. Therefore, our company’s primary strategy for global expansion focuses on innovation and the stability of product performance, which are key to winning recognition and repeat purchases from overseas customers. The overseas market is akin to an examination hall; it does not require clever tactics or flashy packaging, but rather solid product capabilities and well-calibrated pricing strategies. From this perspective, we do not deliberately differentiate between the domestic and overseas markets. As Mr. Lin Yutang wrote in Moment in Peking, ‘Beneath the skin, human souls are the same; what moves one nation can also move another.’ We believe that users across all markets are fundamentally similar, with differences lying primarily in pricing, as there is greater room for premium pricing abroad than in China.”

Luo Junkui summarized, “In my view, customers do not purchase solely because of ‘product automation,’ nor do they buy simply due to ‘low product prices.’ What ultimately drives purchasing decisions is the perceived value of the product. Now and in the future, Naiyou Bio will remain committed to delivering laboratory automation products that offer higher quality, greater efficiency, lower costs, and enhanced ease of use, thereby helping the industry reduce costs and improve efficiency.”

Reference: VBInsight, "2025 Laboratory Automation Industry Research Report"