- Hangzhou-based developer becomes city’s first listed AI company focused on large models after its “AI innovation hub” push
- Strong subscription demand and rising margins highlight healthcare AI’s faster path toward commercialization.
Hangzhou Diagens Biotechnology (2526.HK), a medical imaging and AI model developer, saw its shares rocketing about 120% in yesterday’s Hong Kong stock debut, reflecting growing investor confidence in the profitability of vertical AI applications compared to their general-purpose peers.
The Hangzhou-based AI pioneer began trading at HK$99 ($12.6) per share on Hong Kong Stock Exchange’s main board yesterday. Its shares closed up 121% to HK$219, with a total market cap of HK$18.6 billion.
The listing makes Diagens the third Chinese large-model developer to go public in Hong Kong after earlier AI entrants such as Zhipu.AI and MiniMax — and the first AI firm from Hangzhou to debut since the city elevated AI development to a core industrial priority.
Unlike consumer-facing model makers, Diagens has focused on hospital clients, building a commercial ecosystem spanning medical imaging software, diagnostic equipment, reagents and technology licensing.
The Yangtzeer previously reported that the company’s proprietary imaging foundation model, iMedImage, is designed to cover more than 90% of clinical imaging scenarios, enabling deployment across a broad range of diagnostic workflows.
Investor appetite proved strong. The Hong Kong public offering was oversubscribed 1,073 times, while the international tranche saw demand exceed available shares by over threefold, according to company disclosures.
As of this writing, Diagens shares traded at HK$203, down 3% from the opening price of HK$215, valuing the company at around HK$18 billion.
Diagens is emerging as an outlier in an industry often weighed down by heavy computing costs and long monetization cycles.
Its prospectus shows that revenue in the first three quarters of 2025 surged 470% year on year to 112 million yuan ($15.5 million), while gross margin climbed to 75.86%, reflecting the scalability of enterprise healthcare deployments.
“AI is not just cold code; it carries the warmth of safeguarding lives,” founder Song Ning said, adding that the company plans to accelerate product iteration and global commercialization to improve diagnostic efficiency and expand access to healthcare services.
The Hong Kong listing comes as AI has been reshaping the medical imaging industry worldwide. Frost & Sullivan forecasts the global medical imaging diagnostics market will reach $173.9 billion by 2035, while China’s market alone could expand to 219.3 billion yuan over the same period.
Within that broader industry, chromosome karyotype analysis — a niche where AI automation can significantly reduce manual workloads — is expected to grow rapidly, with China’s market projected to expand more than twelvefold from 165.9 million yuan in 2024 to 2.04 billion yuan by 2030.
