Xiangyu Medical Announces $1.37B Fundraising Plan to Advance Brain-Computer Interface and Rehabilitation Robotics

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Recently, A-share listed medical device companiesXiangyu MedicalAnnounced that the company plans to issue shares to no more than 35 specific investors.The total amount of funds raised shall not exceed RMB 1.366 billion, to be used for includingBrain-Computer Interface Rehabilitation Medical Products, RehabilitationRobotProductincludingR&D Project for Innovative Rehabilitation Medical Products and Supplementary Working Capital.

Targeting the Brain-Computer Interface Sector

Proposed Fundraising of RMB 1.366 Billion

According to the announcement,Sunnyou MedicalThe number of shares to be issued shall not exceed 48 million, i.e., no more than 30% of the company’s total share capital prior to this issuance., with the issue price being no less than 80% of the average trading price of the Company’s shares over the twenty trading days preceding the pricing benchmark date,The total amount of funds raised shall not exceed RMB 1.366 billion.

In terms of the use of funds,RMB 966 million of the funds raised in this offering will be used for the R&D project of innovative rehabilitation medical products,Including brain-computer interface rehabilitation medical products, rehabilitation robot products, and other innovative rehabilitation medical products; the remaining RMB 400 million will be used to supplement working capital.

Sunnyou Medical stated that the implementation of this project will further enhance the company’s portfolio of high-end intelligent rehabilitation products, establishing a comprehensive, multi-tiered system of intelligent rehabilitation equipment that spans high-, mid-, and low-end segments, and covers in-hospital clinical applications, primary care accessibility, and home-based health and wellness.Achieve the upgrade and iteration from traditional passive rehabilitation equipment to AI-powered, brain-computer interface, and robotically adaptive active rehabilitation products, establishing significant differentiated competitive barriers.Strengthen the company's core competitiveness and industry-leading position in the high-end rehabilitation sector, providing core technology and product support for the enterprise's long-term sustainable and high-quality development.

It is worth noting that prior to this issuance, Mr. He Yongzheng and Ms. Guo Junling, as a married couple, collectively controlled 64.64% of the Company’s shares through direct and indirect means, serving as the actual controllers of the Company. Following this private placement, based on the number of shares issued, Mr. He Yongzheng and Ms. Guo Junling will continue to collectively control no less than 49.72% of the Company’s shares through direct and indirect means, thereby remaining the actual controllers of the Company. Therefore,This issuance will not result in any change to the company's actual control rights.

Strong Policy Support

Brain-Computer Interface Sector Becomes One of the National Strategies

Data shows that Sunnyou was established in 2002 and successfully listed on the STAR Market in 2021. The company specializes in rehabilitation fields including pain management, neurology, orthopedics, postpartum care, postoperative recovery, cardiopulmonary rehabilitation, traditional Chinese medicine, elderly care, and integrated medical-nursing care. It is one of the few comprehensive leading enterprises in China’s rehabilitation medical device industry with the capability to supply a full range of rehabilitation equipment and provide integrated hospital-wide clinical rehabilitation solutions along with supporting technical services.

In recent years, at the national level, aroundSmart Healthcare, Rehabilitation Equipment, Traditional Chinese Medicine (TCM) Devices, Brain-Computer Interfaces, Embodied Intelligence, Scenario-Based Applications, and Medical-Engineering Integrated Innovationand other aspects, a series of supportive policies have been intensively introduced. Multiple departments, including the Ministry of Industry and Information Technology, the National Health Commission, and the National Healthcare Security Administration, have established a comprehensive policy support system from dimensions such as industrial implementation, pricing and charging, institutional development, and assistive device assurance.Designate brain-computer interfaces and artificial intelligence as key sectors for priority development。

However, from the perspective of the industrial market landscape, the process of domestic substitution in the field of high-end rehabilitation equipment in China continues to accelerate. For a long period in the past, the domestic mid-to-high-end intelligent rehabilitation equipment market was monopolized by overseas brands, leading to issues such as high equipment prices, high operation and maintenance costs, and insufficient clinical adaptability.

It is encouraging to note that, in recent years, leading domestic rehabilitation medical device enterprises have continuously increased their investment in the research and development of core technologies,Achieving progressive technological self-reliance and controllability in core algorithms, key components, whole-machine integration, and clinical adaptation, while leveraging the cost advantages of localized supply chains, extensive accumulation of deep clinical scenarios, and rapid service response capabilities., the product competitiveness and market recognition of domestically produced high-end rehabilitation equipment continue to rise.

As a leading R&D-driven enterprise in China’s rehabilitation equipment sector, Sunnyou offers a product portfolio covering ten major rehabilitation categories. In the field of brain-computer interfaces (BCI), the company currently provides products such as electroencephalogram (EEG) machines and portable EEG devices. Leveraging non-invasive technology with multimodal and multi-paradigm EEG acquisition, these systems can accurately capture and decode patients’ motor intentions.

It should be noted that this private placement project, focusing on cutting-edge sectors such as brain-computer interfaces to carry out technological breakthroughs and product development, represents Sunnyou’s strategic layout based on industry development trends and anchored in the high-end rehabilitation market.

Sunnyou stated,This project is highly aligned with national strategic planning and industrial development guidelines.It has strategically deployed research and development and product innovation in cutting-edge technologies such as brain-computer interfaces and rehabilitation robots, aligning with major national strategic needs to promote the upgrading of the medical equipment industry and achieve self-reliance and controllability in high-end medical devices.

Therefore, through the implementation of this project,Leveraging its accumulated expertise in brain-computer interface technology and its comprehensive industrial foundation in rehabilitation equipment, how will Sunnyou Medical proceed toThe integrated application capability of deeply merging and implementing frontier brain-computer interface technologies with proprietary rehabilitation equipment? MedDevice Home will continue to monitor this closely.