AcoSound Hearing Aids Files IPO Prospectus: Self-Fitting Technology and Diverse Product Portfolio Drive Expansion Across China and Global Markets
In 1957, the World Federation of the Deaf, acting on initiatives from deaf organizations across European countries, designated the fourth Sunday of September each year as International Day of the Deaf, to enhance societal attention to individuals with hearing impairments.
According to the World Health Organization’s classification of hearing loss severity, when an individual can hear sounds in daily communication but frequently struggles with discrimination, experiences relative difficulty communicating in noisy environments, and often requires others to repeat statements, their hearing impairment is classified as moderate, meeting the criteria for Grade 4 hearing disability under national standards.
According to the latest surveys, individuals with moderate or greater hearing impairment account for more than 5% of the global population. Approximately one-third of adults aged 65 and older suffer from disabling hearing loss, and among those with moderate or greater hearing impairment, the elderly constitute over 75%. Population aging is driving a rapid increase in the number of people with hearing impairment.
Hearing aids have become an effective tool for individuals with hearing impairment to compensate for hearing loss and are currently the most effective intervention for hearing disorders. China has the largest population of people with hearing impairment worldwide, yet its hearing aid adoption rate stands at only 5%, representing a significant gap compared to the 20%–30% rates observed in Europe and North America.
Why Is There Such a Significant Gap in Hearing Aid Adoption Rates Between China and Other Countries? Where Lie the Development Opportunities for Relevant Enterprises? To address these questions, VCBeat interviewed Mr. Li Peng, founder of ACOSOUND, to gain his insights on the Chinese hearing aid market and the lessons learned since establishing the company.
Li Peng, founder of ACOSOUND, analyzes that the current pain points in China’s hearing aid market mainly lie in three aspects: poor user experience with analog devices, high prices for digital devices, and cumbersome fitting processes for digital devices.
Hearing aids are essentially electroacoustic amplifiers. Acoustic signals are converted into electrical signals by a microphone (transducer), amplified by an amplifier, and then converted back into acoustic signals by a receiver for transmission to the human ear.
Hearing aids on the market are primarily categorized into two types: analog and digital. Analog hearing aids offer a poor user experience, as they amplify low- and high-frequency sounds at the same ratio, which can easily cause further hearing damage. Digital hearing aids convert analog signals into digital signals and perform sophisticated processing within the chip, including multi-channel processing, noise reduction, acoustic feedback suppression, and wide dynamic range compression. This results in high-quality sound output, enabling patients not only to hear clearly but also to protect their residual hearing.
Li Peng stated that foreign companies currently monopolize 95% of the domestic hearing aid market. The price of digital hearing aids ranges from several thousand yuan to as high as 40,000–50,000 yuan per unit, making them unaffordable for ordinary wage-earning patients. Recalling this issue, Li Peng shared a past experience.
Before founding the company, Li Peng encountered a mother and her child while conducting market research on hearing aids in Lishui, Zhejiang. The young mother sought consultation for a hearing aid for her two-year-old toddler, but the prohibitive cost ultimately extinguished the hope in her eyes. Furthermore, the process of fitting a hearing aid is far from simple. It requires the patient to visit the clinic in person, where an audiologist tests their hearing loss curve and adjusts the hearing aid parameters accordingly.
As patients’ hearing conditions are constantly changing, continuous adjustments are required to achieve optimal outcomes; therefore, patients need to return regularly to hearing centers for fine-tuning of their hearing aid parameters. The fitting expertise of audiologists significantly influences the wearing experience of digital hearing aids, yet there is a severe shortage of qualified professional audiologists in China. Constrained by these multiple factors, a large number of individuals with hearing impairment in China are unable to obtain hearing aids that suit their needs.
To meet the substantial demand among the hearing-impaired population, Li Peng and his wife, Yao Cuiping (also known as Yao Xiuping), founded ACOSOUND in Hangzhou in 2011. To date, ACOSOUND has assembled a professional team with over a decade of experience in industry R&D and operations. Shortly thereafter, the company independently completed the programming, encapsulation, and hardware integration of DSP chip algorithms. By combining domestically produced digital hearing aids with its proprietary self-fitting solution, ACOSOUND lowered the barrier to hearing aid adoption. “Only by mastering the core technologies of hearing aids can one have the opportunity to become a pioneer in China’s digital hearing aid industry.”
Algorithms directly determine whether a digital hearing aid can output high-quality acoustic signals, making them the most critical component of such devices. It is understood that the main components of hearing aids in China need to be imported from abroad, and the only difference in core technology among domestic manufacturers lies in the algorithms within the DSP (Digital Signal Processor).
Against this backdrop, ACOSOUND has broken the dominance of imported products with its fully proprietary hearing aid algorithms. Its flagship product, the Aikesound hearing aid, demonstrates significantly superior performance in key metrics such as maximum gain, number of channels, and harmonic distortion, far exceeding international standards. The product obtained EU CE certification in 2012 and entered the global market. “ACOSOUND is the only hearing aid manufacturer in China that possesses proprietary hearing aid algorithms,” said Li Peng.
Leveraging its proprietary fitting formula, ACOSOUND has developed a self-fitting software for patients, effectively addressing the pain points of traditional purchasing models.
Users or their children can complete relatively professional questionnaire-based hearing tests via a mobile app. The app automatically adjusts hearing aid parameters using an automatic fitting algorithm based on the measured hearing thresholds. Patients can then use the device after making minor adjustments according to their personal comfort. If assistance is needed, users can remotely request support from audiologists to complete the audiometric testing and fitting process. This self-fitting model offers a simple workflow and low cost while maintaining effective hearing amplification and protecting residual hearing.
Currently, ACOSOUND has launched its Aikesheng brand series of hearing aids in both domestic and international markets, featuring the Ruby series known for its invisibility, thereby establishing a product matrix composed of six major hearing aid series.
Compact size, high power output, and low distortion are the most prominent features of the Ruby Series IIC (Invisible-in-Canal) invisible hearing aids. This series primarily targets high-end users with stringent requirements for both aesthetics and performance, as well as individuals with small ear canals who desire invisible hearing aids. ACOSOUND has pioneered the application of 3D scanning and printing technology in this series, providing users with more comfortable and precisely customized products.
The Shengduo series of hearing aids is ACOSOUND’s new generation of wireless Bluetooth hearing aids, featuring the ACOD intelligent multi-core digital signal processor, the EDNR 3.0 environmental detection and noise reduction system, and SIW (Sound Isolation Wall) feedback suppression technology. “Even in noisy environments, users can enjoy clear auditory perception,” introduced Li Peng. The Shengduo series offers wireless adjustment via a mobile app, enables binaural communication, supports remote microphone technology, and allows for both self-fitting and remote fitting by users, making it “the world’s first hearing aid capable of self-fitting and remote fitting.”
Furthermore, ACOSOUND’s Wuyou series hearing aids support wireless charging, eliminating the hassle for elderly users of replacing and purchasing hearing aid batteries. The Qingrui series offers a wide range of power options, suitable for both patients with mild hearing loss and those with severe hearing loss. The Zhihui series represents ACOSOUND’s mid-to-high-end lineup, featuring multiple sound processing modes that adapt to varying environments. Meanwhile, the Xianfeng series is a cost-effective option designed for the general public, ensuring clear and audible sound even for users with limited budgets.
It is reported that ACOSOUND’s Ruby series of invisible hearing aids has long held a high market share in the IIC (Invisible-In-Canal) hearing aid segment, while its Acomate series, launched for European and American markets, is equally competitive. Currently, ACOSOUND hearing aids are sold across more than ten provinces in China and have entered markets in over 60 countries.
Li Peng revealed that ACOSOUND will launch a new round of financing to fund product R&D, marketing promotion, and the upgrading of production facilities. Interested institutions may contact VCBeat’s investment and financing assistant, Xiao Yun: DongMai_Investent.