Biotop Biological (688767.SH) Strategic Investment in Brain-Computer Interface, AI, and Embodied Intelligence Fusion Technology Firm to Enter Upstream BCI Industry Chain

(Source: Discretionary Consumer & Overseas Research)

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Event Overview

Zhongke Imagery (Nanjing) Technology Co., Ltd. (hereinafter referred to as “Zhongke Imagery”) recently completed an angel round of financing amounting to tens of millions of yuan,This round of financing is led by Liming Venture Capital andBiotool Biotech(hereinafter referred to as the “Company”) jointly established and led by Botuo Brain-Computer Interface Fund, with follow-on investments from the USTC Silicon Valley Guidance Fund, Zeyu Capital, and Huacang Capital.Zhongke Imagery is a brain-computer interface technology enterprise incubated by the Institute of Automation, Chinese Academy of Sciences, focusing on“Brain-Computer Interface-AI-Embodied”Deep Integration, Committed to Building“What You Think Is What You Get”a new generation of brain-computer interaction technology system, providing clinical solutions for patients with movement disorders, and continuously promoting the extension of technology to research on neurological and psychiatric diseases, as well as scenarios such as embodied intelligence.Dr. Yu Shan, Founder and Chief Scientist of Zhongke Imagery, previously worked at the Max Planck Institute in Germany before returning to China.·Conducted research at the Max Planck Institute for Brain Research and the U.S. National Institute of Mental Health; currently a researcher at the Institute of Automation, Chinese Academy of Sciences, and Director of the Laboratory for Brain Atlas and Brain-Inspired Intelligence, with deep expertise in neuroscience and brain-Intelligent Cross-disciplinary Research Exceeding20Year.

Analysis and Judgment

According to the company26Year1Monthly Investor Relations Record: The company plans to jointly establish a special industrial fund for brain-computer interfaces (BCI) and brain science with professional investment institutions. The fund intends to invest in non-listed companies across the upstream and downstream segments of the BCI industry chain, with a total fund size of2billion yuan, the company, as a limited partner, subscribed for capital contribution with its own funds1.9billion yuan, accounting for the subscribed capital contribution amount of the fund95%. This round was led by Botuo Brain-Computer Interface FundZhongke Imagery, following the company's strategic equity participation inFollowing Haoshi Tianhui and Qingshi Yongjuan, two brain-computer interface (BCI) enterprises specializing in mental health diagnosis and treatment, a new round of investment layout in the BCI industry has been initiated.This marks the accelerated advancement of the company’s strategic layout across the brain-computer interface (BCI) industry chain, with the potential to achieve effective synergy with its existing equity-participated enterprises in the mental health diagnosis and treatment sector, leveraging dimensions such as technology and industrial resources.

Focusing on Zhongke Imagery's Current Technological Advantages and Future Development Plans:

► Technical Advantages：Validate the New Paradigm of Brain-Computer Integration, and Build a Full-Stack Technical System Centered on Brain-Computer Intelligent Fusion。

1) New Paradigm of Brain-Computer Integration: Zhongke Imagery Has Taken the Lead in Verification“Intent Decoding+AIPlanning+Embodied Execution”A New Paradigm of Brain-Computer Integration，26Year4In the routine animal experiments demonstrated in May, its brain-computer interface system only0.2Decodes the movement intent of macaques in seconds, and byAIAutonomously complete motion planning and grasping execution for the robotic arm and dexterous hand; compared to the traditional brain-computer interface model that requires continuous brain involvement in controlling numerous execution details, this model achieves a division of labor where “the brain is responsible for intent and decision-making, while the machine handles planning and execution.””collaborative technical pathway, significantly reducing cognitive load and demonstrating potential for substantial improvements in control precision, motion coherence, long-term user experience, and system generalization capability. According to Zhongke ImageryBCIG（Brain-Computer Interface Grading) Hierarchical System of Brain-Computer Intelligence Integration. The new paradigm of brain-computer integration, preliminarily validated by Zhongke Imagery, is driving its transition from the Level 2 stage of “brain control with program assistance” to “brain intent,”AIadvancing into the three-stage process of “implementation.”

2) Full-stack technology system: Zhongke Imagery has established a full-stack technology system covering hardware, algorithms, and system integration, centered on the goal of high-level brain-computer intelligence fusion. On the hardware side, developing an integrated device for laser-assisted minimally invasive craniotomy and flexible electrode implantation, at approximately300Micron-scale micropores replace traditional craniotomy, byRobotAchieve precise implantation of high-throughput flexible electrodes, balancing signal quality, minimally invasive safety, and clinical acceptability;Algorithm Side, leveraging the brain’s positional encoding mechanisms during movement to develop a motor planning decoding model that achieves accurate decoding with only dozens of channels and can even predict hand trajectories in advance; meanwhile, laying out foundational neural decoding models and highly generalizable embodied intelligence control algorithms capable of cross-day, cross-task, and cross-subject performance, thereby supporting the translation of brain-computer interface technology from laboratory settings to real-world applications.

►  Follow-up Plan: Advancing the First CaseBCIG-3Conducting Human Clinical Trials for Brain-Computer Interfaces to Build the Foundational Architecture of Brain-Machine Intelligence Integration。

Leveraging this round of financing and industrial resource support, Zhongke Imagery is strategically focusing on two key directional layouts:1）Accelerate the advancement of the first caseBCIG-3Class II Brain-Computer Interface Human Clinical Trial, continuously consolidating its original technological advantages and first-mover position in the field of brain-computer intelligence integration;2) with“Intent Decoding+AIPlanning+Embodied Execution”as the foundation, further propose the underlying architecture for brain-computer intelligence fusion--BAM（Brain-Action-Model) Modeland its hardware and software architecture, to promote the complementary advantages between the high-level cognitive capabilities of the brain and the low-level control capabilities of embodied intelligent agents, and to validate the biological brain and“Machine Brain”A New Intelligent Form with Deep Integration.

Investment Recommendation

Biotest Biotechnology WorldwidePOCTThe market boasts extensive accumulated expertise in regulatory registration and certification, along with cost advantages across the entire industry chain.OTCThe overseas market for diagnostic reagent products continues to expand; microfluidic fluorescence immunoassay products may become a new pillar of performance; the company’s operations are underpinned by robust cash flow, and the future performance of its core business is expected to improve.The company, through its industrial investment platformBotai Zhitou and Brain-Computer Interface Industry FundContinuously Expanding the Investment Landscape in Brain-Computer Interfaces, among whichBotaizhitou InvestmentHaoshi Tianhui/Qingshi Yongjuan, Haoshi Tianhui's non-invasive products have obtained medical device registration certificates andBThrough multi-channel breakthroughs, Qingshi Yongjun’s invasive products are in the clinical validation phase, both corresponding to psychiatric diagnosis and treatment.“Rapid Screening Diagnosis+Digital Therapeutics”with“Critical Care Treatment+Neuromodulation”scenarios, forming differentiated complementarity;Industrial Fund Strategically Invests in Invasive Brain-Computer Interface Company Zhongke Imagery, expandThe upstream industry chain of brain-computer interfaces is expected to create synergies with existing BCI-based mental health diagnosis and treatment services.; Looking ahead, continuous policy-driven catalysts for brain-computer interfaces (BCI) and the substantial latent demand in psychiatric diagnosis and treatment suggest that, underpinned by favorable industry conditions and policy support, BCI-related businesses are poised to become a new pillar of the company’s performance. In summary, we maintain our earnings forecasts and expect the company26-28Annual Operating Revenue5.53/6.31/7.90100 million yuan, year-on-year+23.5%/+14.0%/+25.3%; corresponding net profit attributable to shareholders of the parent company1.19/1.47/2.02100 million yuan, year-on-year+141.0%/+23.7%/+37.6%; Corresponding toEPSFor0.80Yuan/0.98Yuan/1.35yuan; based on26Year6Month11Daily Closing Price38.36Yuan, corresponding to26-28YearPEFor48X/39X/28X, maintaining the "Buy" rating.

Risk Warning

Geopolitical and trade policy risks, and the risk that research and development and registration progress for brain-computer interfaces may fall short of expectations.

Note:

Excerpt from the report in this articleHuaxi SecuritiesThe research institute has publicly released its research report. For specific content and related risk disclosures, please refer to the full version of the report.

Executive Deputy Director: Liu Wenzheng

Analyst Practicing Certificate No.: S1120524120007

Analyst:Deng Yichen

Analyst's Practice License Number:S1120525020001

Securities Research Report: "[Huaxi Overseas] Botuo Biotech (688767.SH) Event Commentary:Strategic Minority Stake“Brain-Computer Interface,AIand Embodied Intelligence”Convergence Technology Enterprises Enter the Upstream Supply Chain of Brain-Computer Interfaces》

Report Release Date: June 12, 2026

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