The surge in AI applications has sparked significant interest in the healthcare sector, particularly in AI-enabled medical solutions, which have become a focal point of recent market innovationsSince February, there has been a remarkable uptick in stock prices for companies in the AI healthcare space, driven primarily by advancements associated with the DeepSeek phenomenonHowever, a closer examination reveals that many companies enjoying this stock boom are simultaneously grappling with substantial financial losses or notable declines in their performanceAdditionally, the release of certain lock-up shares by some companies has raised eyebrows among investors, prompting discussions on the security of their investments and long-term sustainability.

Leading the charge in this burgeoning field is Weining Health, a frontrunner in medical information technology, which has seen its stock price soar over 90% since the beginning of FebruaryOn February 10, the company announced its strategic vision for January 1, 2025, stating, "AI Everywhere - Empowering All Scenarios." This initiative emphasizes integrating AI into every aspect of their product design, effectively positioning Weining Health as both a data expert and an AI specialistThe release of their large medical model WiNGPT 2.8, along with the WiNEX Copilot 2.1, signifies a direct alignment with DeepSeek's innovations, enabling quicker transitions and advancements into the AI healthcare sector.

Another key player, Chuangyue Huikang, made headlines with a similar announcement on February 9, where they revealed their intent to explore the integration of a new generation of large models with healthcare applications powered by DeepSeekThis initiative has led to a strategic partnership with Daily Interactive and the Zhejiang Smart Medical Innovation Center, focusing on creating a new paradigm in “AI + Healthcare.” Their stock price has also risen impressively, climbing more than 66% within the same timeframe.

The DeepSeek momentum not only fuels progress in medical information systems but also extends into other critical areas such as medical imaging and diagnostics

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For instance, Dean Diagnostic has experienced an astonishing rise of 89.67% from February onwards, owing largely to their focus on AI applications within comprehensive medical diagnostic servicesIn a recent institutional investigation on February 10, Dean Diagnostic illustrated how they’ve collaborated with over 20 top-tier hospitals in China to develop disease-specific databases and clinical research cohorts, enhancing their capacity for data-driven healthcare solutions.

Similarly, Kingmed Diagnostics announced on February 10 that they, too, have plugged into DeepSeek's technology, deploying the DeepSeek-R1 model with their intelligent assistant “XiaoYuyin.” Notably, BGI Group, another significant player in this sector, held discussions last week with various institutions such as E Fund Management and Harvest Fund Management, reiterating the successful integration of genomic data with AI algorithms to facilitate personalized health management and accelerate the development of precision medicine.

Wanda Information is actively pushing the agenda in the smart healthcare domain by leveraging advanced health information platforms and hospital information systemsOn February 11, they disclosed that they have successfully implemented the full version of DeepSeek alongside a distilled version, reflecting their commitment to harnessing AI in fostering advancements across nearly 2000 medical institutions nationwide.

Despite the optimism surrounding AI healthcare, the financial outlook for many companies remains grimAs the hype intensifies, several companies in the sector have projected notable losses for 2024. BGI Group reported expectations of a revenue drop between 8% and over 12%, with potential net losses ranging from 7.5 billion to 9.2 billion yuanWanda Information disclosed a similarly bleak outlook, predicting a revenue decline between 13% to 21%, while attempting to maintain a degree of operational efficiency through cost-reduction measures.

Kingmed Diagnostics is also facing significant challenges with projected net losses of between 3.5 billion and 4.5 billion yuan, attributing this downturn to lower-than-expected revenue and prolonged collection cycles on receivables, which has led to sizable impairment losses

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