Borui Kang Files IPO Prospectus: China's Brain-Computer Interface Industry Reaches a Pivotal Moment

In 2026, China’s brain-computer interface (BCI) sector reached a historic inflection point in capitalization.

Over the past six months, total financing in China’s brain-computer interface (BCI) sector has exceeded RMB 4 billion, representing a 230% year-on-year surge. Coupled with policy dividends—such as the inclusion of BCI technologies among the nation’s key future industries for cultivation and the implementation of multiple industry standards—the entire sector is comprehensively transitioning from laboratory concepts to industrial-scale commercialization.

On June 11, Neuracle’s IPO application for the STAR Market was officially accepted by the Shanghai Stock Exchange. This Tsinghua-affiliated company, with over a decade of deep engagement in brain-computer interfaces, is poised to become the “first BCI stock on China’s A-share market.”

At the other end of the track, BrainCo, which focuses on non-invasive approaches, filed for an IPO with the Hong Kong Stock Exchange in late January this year. With the two leading companies positioned in the Shanghai-Shenzhen and Hong Kong capital markets respectively, a “duopoly race” has begun.

A review of Neuracle’s prospectus reveals that the company, which originated from Tsinghua University’s Neural Engineering Laboratory in 2011, made a distinctive choice at its inception: it bypassed the consumer-grade sector, characterized by low entry barriers and rapid monetization, to firmly commit to the medical invasive brain-computer interface (BCI) field, which presents the highest technical challenges and the most stringent regulatory requirements.

More than a decade later, Neuracle has delivered its answer: the world’s first implantable brain-computer interface (BCI) medical device has successfully received regulatory approval, its non-invasive products have achieved domestic substitution in China, it holds hundreds of core patents, and it has firmly secured its position in the first tier of the global BCI industry.

Behind the technological advantages, challenges loom large. The industry’s characteristics—high R&D costs, lengthy clinical trials, and slow commercialization—have kept Neuracle unprofitable. In 2025, its revenue exceeded RMB 100 million for the first time, yet the net loss attributable to shareholders still reached RMB 230 million.

As the brain-computer interface (BCI) industry moves from concept to commercialization, and as hard-tech enterprises flock to the capital markets, can technological leadership be translated into commercial value? Can first-mover advantages be sustained? The IPO journey of this Tsinghua-affiliated enterprise is not only a critical test for itself but also a microcosm of China’s entire BCI industry.

In November 2011, Xu Honglai and Huang Xiaoshan founded Neuracle. Both hold Ph.D.s in Biomedical Engineering from Tsinghua University, and the company’s core team originates from the Tsinghua University Neuroengineering Laboratory.

Before brain-computer interface (BCI) technology entered the public spotlight, this research team made a pivotal decision: to establish epidural semi-invasive medical BCI as their long-term core R&D focus.

This is tantamount to a counter-trend gamble. This is because the global brain-computer interface (BCI) industry is generally divided into two major camps:

Fully Invasive Brain-Computer Interface Technology, Represented by Musk’s NeuralinkElectrodes are surgically implanted deep into the cerebral cortex to acquire high-precision neural signals. The goal is to achieve high-channel-count, high-bandwidth signal acquisition, enabling paralyzed patients to control external devices or restore partial bodily functions.

However, despite Neuralink’s efforts to minimize surgical trauma and the risk of brain tissue damage through flexible electrodes and surgical robotics, invasive technologies still inherently carry certain surgical risks, immune responses, and long-term stability issues—common challenges facing this technological pathway.

The other camp consists of the non-invasive technological approach adopted by most domestic enterprises.It primarily relies on head-mounted devices and body-surface sensors to acquire electroencephalogram (EEG) signals. As a non-invasive approach that does not require craniotomy, it offers advantages such as strong consumer appeal, low barriers to implementation, and high safety, making it suitable for rapid application in fields including medical rehabilitation, education, and entertainment.

BrainCo is a representative enterprise in China's non-invasive brain-computer interface (BCI) sector. Its products, such as BCI headbands, have been applied in scenarios including attention training and sleep monitoring, making it one of the benchmark companies in this field.

Neuracle, however, has forged a third path—the semi-invasive (epidural implantation) technical route.The product’s electrodes are placed between the skull and the dura mater without penetrating brain tissue, requiring only minimally invasive surgery for implantation. This approach avoids the life-threatening risks associated with fully invasive procedures while addressing the limitations of non-invasive methods, such as signal attenuation and insufficient precision.

Critical care medical rehabilitation represents a core, essential application scenario for brain-computer interfaces (BCIs). The clinical diagnosis and treatment needs of patients with spinal cord injuries, refractory epilepsy, and high-level paralysis offer superior long-term commercial value compared to consumer-grade applications. This strategic positioning also constitutes Neuracle’s key differentiating competitive barrier.

Over the past decade, Neuracle has been deeply engaged in a phase of intensive technological breakthroughs. The team has persistently advanced foundational technologies, including weak neural signal acquisition, wireless power supply, and neural signal decoding. To date, it has secured 179 authorized patents domestically and internationally, including 64 invention patents in China, and has participated in the formulation of four national industry standards for brain-computer interfaces.

Leveraging Tsinghua University’s research, industry, and academic resources, Neuracle has prioritized completing the commercialization loop for its non-invasive products. Its EEG machines and multi-channel EEG acquisition devices have been deployed at scale in China’s top-tier (Grade A tertiary) hospitals and research institutes, generating operational cash flow to support sustained high-level R&D expenditures.

October 2023 marked a key milestone in its development: Neuracle’s NEO minimally invasive brain-computer interface (BCI) platform was used to perform the world’s first wireless, minimally invasive epidural BCI implantation surgery at Xuanwu Hospital of Capital Medical University. Relying on EEG signal commands, a participant with high-level paralysis successfully performed hand movements such as grasping objects and drinking water independently.

This surgery validated the clinical feasibility of the semi-invasive approach, marking Neuracle’s transition from laboratory research to real-world clinical applications.

For medical device companies, product approval is merely the first step; clinical promotion, market penetration, and the establishment of reimbursement systems constitute the true test of commercialization capabilities.

Neuracle’s core product, NEO-ONE SCI (Implantable Brain-Computer Interface System for Hand Motor Function Compensation), as the world’s first approved and marketed Class III invasive brain-computer interface medical device, has a regulatory approval journey that encapsulates the pain points and breakthroughs in the commercialization of high-end innovative medical devices in China.

In August 2024, the product was officially included in the National Medical Products Administration’s (NMPA) Special Review Procedure for Innovative Medical Devices, entering an expedited approval pathway. After more than six months of review, NEO-ONE SCI successfully obtained the Class III Medical Device Registration Certificate in March 2026, with indications for quadriplegia caused by cervical spinal cord injury.

Approximately one week after the product received regulatory approval, the Shanghai Municipal Healthcare Security Administration swiftly included it in the catalog of medical consumables covered by medical insurance and completed its listing on the Sunshine Procurement Platform, thereby taking the lead in establishing a closed loop encompassing “clinical use – billing and settlement – medical insurance coverage.”

In the high-value innovative medical equipment sector, health insurance coverage serves as a key lever to reduce patients' financial burden and accelerate departmental adoption.

However, the prospectus also warns that the product is currently only included in the consumables catalog and has not yet achieved comprehensive medical insurance reimbursement, meaning payment-related issues have not been fully resolved.

Prospectus data shows that as of December 2025, Neuracle had cumulatively completed implantation surgeries in 32 patients across 11 hospitals in China. All subjects met the primary clinical endpoints, and 68.8% of patients showed significant improvement in hand grasping function six months post-surgery.

The minimally invasive implantation and wireless power supply design enabled patients to be discharged just ten days after surgery, while also validating the system’s long-term operational stability.

In terms of product matrix layout, Neuracle has formed a “cash cow + growth pole” combination.

Non-invasive ProductsWith over 20 product categories covering areas such as EEG acquisition and neuromodulation, its products have been adopted by more than 500 medical institutions and 300 research organizations across China. In 2025, its domestic market share for EEG machines surpassed that of foreign brands for the first time, breaking the long-standing monopoly held by overseas manufacturers and becoming its primary revenue source at this stage.

Invasive ProductsIn addition to the commercially available hand function compensation systems, NEO-ONE ANS for refractory epilepsy has entered multicenter confirmatory clinical trials, while initiatives in stroke, lower-limb motor reconstruction, and speech decoding are advancing steadily, establishing a tiered R&D portfolio.

Meanwhile, industry realities are simultaneously coming into play: although the world’s first invasive brain-computer interface product enjoys a first-mover technological advantage, its large-scale implementation will be constrained by the need for clinical training in surgical procedures, patient acceptance, and regional disparities in medical insurance policies, as it represents an entirely new category of medical devices.

Among domestic peers in the same sector, invasive brain-computer interface products such as BeiNao No. 1, Jieti Medical, and Zhiran Medical are all in clinical stages, with no direct competitors expected to receive approval in the short term.

Neuracle enjoys a dual window of opportunity driven by industry policies and clinical products; however, converting its first-mover technological advantage into market scale remains challenging. The core commercialization objective is to achieve large-scale penetration into tertiary hospitals across China, starting from an initial cohort of 32 early-stage clinical cases.

Neuracle’s financial data over the past three years exhibits typical characteristics of pre-profit, hard-tech enterprises listed on the STAR Market.

In terms of revenue, Neuracle’s income is derived entirely from non-invasive products.

Among these, the EEG acquisition system is the largest revenue pillar, accounting for 72.32% (RMB 77.6557 million) of the total revenue in 2025.

In 2024, its revenue amounted to RMB 65.9747 million, representing a slight decline from RMB 75.2124 million in 2023. The prospectus explicitly stated that this was primarily due to the impact of budget cycles among downstream scientific research and medical institutions.

In 2025, Neuracle’s non-invasive products continued to see significant volume growth. Coupled with an expanded product portfolio, the company achieved revenue of RMB 108 million, representing a substantial 64% year-on-year increase. This milestone officially places Neuracle in the RMB 100 million revenue tier, further solidifying its commercial foundation.

The divergence in profit performance is the focal point of market debate.

From 2023 to 2024, Neuracle’s losses remained stable at approximately RMB 49 million, while the net loss attributable to shareholders rose to RMB 230 million in 2025.

The prospectus explicitly attributes the substantial losses primarily to share-based payment expenses arising from employee stock incentive plans.

After excluding non-recurring gains and losses, the net loss attributable to shareholders of the parent company, after deducting non-recurring items, amounted to RMB 47.3131 million in 2025, representing a narrowing compared to the RMB 58.1194 million loss in 2024, which indicates a marginal improvement in the loss trend of the core business.

R&D investment is the key to understanding Neuracle.

Its cumulative R&D investment over the past three years amounted to approximately RMB 187 million, with R&D expenses accounting for more than 80% of annual revenue for two consecutive years. Even in 2025, when its annual revenue exceeded RMB 100 million, the R&D intensity remained as high as 60.02%.

For frontier technologies such as brain-computer interfaces (BCIs), iteration is endless. Clinical trials of invasive products and the development of next-generation high-throughput platforms require continuous capital infusion, making high R&D investment an essential industry requirement.

Cash flow data sends positive signals.

Neuracle’s operating cash flow shifted from RMB -50.7249 million in 2023 and RMB -30.2147 million in 2024 to a positive RMB 9.4984 million in 2025, signaling the emerging self-sustaining capability of its core business.

Meanwhile, Neuracle’s debt-to-asset ratio stood at only 14.14% by the end of 2025, with combined cash on hand and structured deposits exceeding RMB 670 million, reflecting a healthy financial structure.

Neuracle’s STAR Market IPO plans to issue no more than 20 million shares, with total share capital not exceeding 80 million shares post-issuance, aiming to raise RMB 2.5 billion in funds.

The allocation of this capital precisely aligns with its three core immediate needs, while also reflecting investors’ long-term outlook on the brain-computer interface (BCI) sector.

As disclosed in the prospectus, the allocation of funds raised is as follows: RMB 1.54 billion will be invested in brain-computer interface (BCI) research and development projects, accounting for 61.6%; RMB 410 million will be used for industrialization construction, accounting for 16.4%; and the remaining RMB 550 million will be used to supplement working capital, accounting for 22%.

Tracing Neuracle’s capital journey, it is backed by a large cohort of top-tier investment institutions.

In 2015, Neuracle completed a RMB 12 million angel financing round, becoming one of the earliest brain-computer interface companies in China to attract capital investment;

Subsequently, institutions such as Sequoia Capital China, Sinoway Capital, Baidu Venture Capital, and Pudong Venture Capital entered the market.

Following the completion of its Series D+ financing round in 2025, its post-money valuation reached RMB 3.5–4 billion.

At the other end of the track, BrainCo, which focuses on non-invasive approaches, submitted its IPO application to the Hong Kong Stock Exchange in late January this year. The two leading brain-computer interface companies now dominate the Shanghai/Shenzhen and Hong Kong stock markets, respectively, ushering in a “duopoly race” landscape.

Two companies are racing to list on the A-share and Hong Kong stock exchanges, respectively; whichever rings the bell first will mark a milestone for the industry.

For Neuracle, this IPO is not the finish line, but the starting point of a new race in technology and commercialization. The RMB 2.5 billion raised will fortify its R&D moat, while the gradual improvement of the medical insurance system will unlock market potential.

From the perspective of long-term industry development, the potential of brain-computer interfaces (BCIs) should not be confined to the field of medical rehabilitation. In its prospectus, Neuracle outlined plans to advance the research and development of cutting-edge technologies such as fine motor control and language decoding, expanding product applications from paralysis rehabilitation to areas including depression and Alzheimer’s disease. Meanwhile, the company will strengthen the in-house R&D of core components such as chips and electrodes, aiming to build a comprehensive, full-industry-chain ecosystem.