Innovative Medical's Stock Surges 10.02%: Betting Big on Brain-Computer Interface to Redefine Healthcare Boundaries

InnovationHealthcareStock Price Soars Like a Rocket.

Source｜Pharmaceutical Research Society

Since the beginning of this year, a concept in the medical field has been continuously fermenting and heating up. It is Brain-Computer Interface.

Data from IT Orange shows that, as of August 12, there have been 13 investment events in the brain-computer interface field in 2025, with a total investment amount of 923 million yuan, significantly higher than the six investment events and total amount of 201 million yuan for the entire year of 2024.

Looking at the performance of the secondary market these days, concepts such as Medlander, Xiangyu Medical, and Zhejiang Shanxiahu Pearl Group Co., Ltd. have continued to rise, creating a wave of positive market sentiment. Among them, Zhejiang Shanxiahu Pearl Group Co., Ltd. also issued an announcement on abnormal stock trading fluctuations, stating that the cumulative deviation of closing price increases over three consecutive trading days—August 11, 12, and 13, 2025—exceeded 20%.

On August 14, Zhejiang Shanxiahu Pearl Group Co., Ltd. also closed at the upper limit, with its share price surging by 10.02% to close at RMB 24.92. This round of sharp rise in stock price is likely due to the company's previous investment moves.

The announcement mentioned that Zhejiang Shanxiahu Pearl Group Co., Ltd. participated in the investment and establishment of Cereblink (Hangzhou) Technology Co., Ltd. (hereinafter referred to as "Cereblink") at the beginning of 2021, holding 40% of Cereblink's equity. Cereblink mainly focuses on the medical rehabilitation field, engaging in the core technology research and development of brain-computer interfaces and the design and production of related products.

So, what exactly is a brain-computer interface? Why has it garnered so much attention? What does its commercialization prospect look like? Let’s briefly discuss this with Cereblink (Hangzhou) Technology Co., Ltd. as our point of observation in the innovative healthcare sector.

Brain-Computer Interface: From Science Fiction to Reality

In the public eye, brain-computer interface is considered a relatively sci-fi concept. It mainly refers to bypassing peripheral nerves and muscles to establish a new communication and control channel directly between the brain and external devices, thereby enhancing, improving, and extending brain functions. In the medical field, it can be applied to address issues of neurological function damage in patients with paralysis, stroke, Parkinson's disease, and more.

At present, the market has a positive expectation for the expansion of the brain-computer interface market in the medical field. McKinsey predicts that the global brain-computer interface medical market size will reach 40 billion US dollars in 2030 and exceed 145 billion US dollars in 2040, of which the treatment of central nervous system diseases (such as Parkinson's disease, Alzheimer's disease) and the field of emotional intervention account for more than 80%.

Under the enticing prospects, science fiction no longer remains merely in the realm of imagination.

Recently, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and five other departments issued the "Implementation Opinions on Promoting the Innovative Development of the Brain-Computer Interface Industry." It emphasized that by 2027, breakthroughs in key brain-computer interface technologies will be achieved, establishing advanced technology, industrial, and standards systems. Related products will accelerate their application in industrial manufacturing, healthcare, and consumer living. Meanwhile, the industry scale will continue to grow, creating 2 to 3 industrial development clusters and exploring a range of new scenarios, models, and business formats.

By 2030, the innovation capability of the brain-computer interface industry will significantly improve, forming a safe and reliable industrial system. It will cultivate 2 to 3 globally influential leading enterprises and a group of specialized and innovative small and medium-sized enterprises, with comprehensive strength advancing to the forefront of the world.

In March this year, the National Healthcare Security Administration also released the "Guidelines for the Establishment of Medical Service Price Projects in the Field of Neurological Systems," which independently established projects for new brain-computer interface technologies, setting price standards for invasive brain-computer interface implantation and removal fees, as well as non-invasive brain-computer interface fitting fees. Relevant companies are currently advancing clinical trials and commercialization of brain-computer interfaces.

For instance, the B-end product (upper limb exoskeleton active rehabilitation training system) developed by Cereblink using brain-computer interface technology has officially entered multi-center clinical trials at the Second Affiliated Hospital of Zhejiang University School of Medicine, Zhejiang Hospital, and Hangzhou First People's Hospital. If the relevant work proceeds smoothly, it is expected to complete the registration application for Class II medical devices by the first half of 2026. The C-end product has entered the mass production stage and is expected to be launched in the market successively in 2025.

As the new business continues to heat up, the previous performance gloom of Zhejiang Shanxiahu Pearl Group Co.,Ltd. seems to be less noticeable.

Innovative Medical Care with New Concepts

In fact, innovative healthcare is in urgent need of new concept support.

Judging solely from the company's performance, it is indeed difficult for the investment market to have strong confidence. According to the latest financial report released by Zhejiang Shanxiahu Pearl Group Co., Ltd., in the first half of this year, the company achieved revenue of 402 million yuan, a year-on-year decrease of 1.60%; the attributable net profit improved by 29.12% year-on-year, but still incurred a loss of 11.3613 million yuan.

Less-than-ideal performance reflects challenges facing the core business.

It is reported that Zhejiang Shanxiahu Pearl Group Co., Ltd. mainly engages in medical services, with four subordinate medical institutions: Jianhua Hospital, Kanghua Hospital, Futian Hospital, and Mingzhu Hospital. Among them, Jianhua Hospital is a Grade A tertiary comprehensive hospital, Kanghua Hospital is a Grade A secondary comprehensive hospital, Futian Hospital is a Grade B secondary rehabilitation hospital, and Mingzhu Hospital is a Grade A secondary comprehensive hospital.

Running a hospital is clearly no easy task. Intensified industry competition, healthcare insurance policy reforms, and heavy operational costs are all factors impacting the profit margins of hospitals. In the first half of this year, among the performance disclosures of three hospitals owned by subsidiaries of Zhejiang Shanxiahu Pearl Group Co., Ltd., two were in a loss: Kanghua Hospital's net profit was approximately -681,000 yuan, while Futian Hospital’s net profit was about -3,856,800 yuan.

In this case, the brain-computer interface business seems to have become the most prominent highlight of Zhejiang Shanxiahu Pearl Group Co.,Ltd.

However, the track is advanced and emerging enough, which also means that there will be no shortage of challenges.

Zeng, the deputy director and researcher of the Shanghai Institute of Microsystem and Information Technology at the Chinese Academy of Sciences, once stated: "The development of brain-computer interface technology faces several major challenges: First, it is difficult to balance safety and effectiveness, which limits the widespread application of brain-computer interface technology; Second, the effective bandwidth of brain-computer interfaces—namely, how many electrodes need to be implanted to sufficiently cover essential brain activities or meet specific functional requirements—remains unknown; Third, processing massive neural signals is still a significant challenge; Fourth, there are societal concerns about the security and ethical risks of brain-computer interfaces."

Therefore, the commercialization of Cereblink's products is still in its early stages, with only a small number of products being sold in collaboration with research institutions, and the certainty on the consumer end (C-end) remains relatively weak.

In April this year, Zhejiang Shanxiahu Pearl Group Co., Ltd. (Innovative Healthcare), in an interview with institutions such as the Shenwan Hongyuan Research Institute and the Guohai Securities Research Institute, stated that it is currently unable to estimate the market performance of its C-end product developed for stroke patients with hemiplegia.

It is worth mentioning that, in this announcement of abnormal stock trading fluctuations, Zhejiang Shanxiahu Pearl Group Co., Ltd. also disclosed the current operating status of Cereblink: In 2023 and 2024, the operating losses were RMB 6.6017 million and RMB 8.6641 million, respectively. Such risk warnings may also be bringing capital back to rationality.

But if significant breakthroughs can be achieved amidst the cautious expectations of the investment market, innovative medical care might still spark an even greater capital frenzy.

       Title: Stock Price Surges Another 10.02%! Defining Medical Boundaries with Brain-Computer Interface, Did Zhejiang Shanxiahu Pearl Group Co.,Ltd. Make the Right "Bet"?