Jiangsu Canopus Wisdom Medical Technology Co.,Ltd. (Dongxing Medical) is diving into the booming brain-computer interface sector with a modest trial investment. On the evening of September 22, the company announced plans to jointly establish a controlled subsidiary with a related party, committing 20 million yuan to enter the brain-computer interface industry. Across the sector this year, multiple listed pharmaceutical companies have taken varied routes into this arena, making brain-computer interfaces the latest hotspot for medical firms vying for position. That said, industry experts caution that while the business opportunities are largely tied to disease treatment, the core question remains whether the real-world clinical efficacy of these products can withstand rigorous validation.

Plans to Establish Lingnao Intelligence

On the evening of September 22, Dongxing Medical disclosed it will jointly fund the creation of a controlled subsidiary, Changzhou Lingnao Intelligent Technology Co., Ltd. (Lingnao Intelligence), with Changzhou Guoxing Investment Management Co., Ltd. (Guoxing Investment). The registered capital stands at 30 million yuan, with Dongxing Medical injecting 20 million yuan for a 66.67% stake, while Guoxing Investment contributes 10 million yuan for 33.33%. Once established, Lingnao Intelligence will be consolidated into the parent company's financial statements as a controlled subsidiary. As Guoxing Investment is directly controlled by Wan Shiping, Dongxing Medical's controlling shareholder and actual controller, and will fund its investment with its own capital, the transaction qualifies as a related-party deal. The project is still in the preparatory phase.

According to the announcement, Lingnao Intelligence's business scope covers the production and sale of Class I, II, and III medical devices, along with artificial intelligence hardware sales, AI application software development, and AI theory and algorithm software development. Dongxing Medical states that this investment represents a natural extension and forward-looking move from its core medical device operations into brain-computer interfaces and brain neuroscience. The company's main business centers on surgical instruments and equipment, including staplers and endoscopic staplers. Lingnao Intelligence is expected to leverage Dongxing Medical's R&D, production, and clinical translation capabilities in surgical instruments, sharing product registration, clinical resources, quality compliance systems, and customer channels. Through Lingnao Intelligence, the company aims to attract tech talent, collaborate with leading universities and research institutes on industry-academia partnerships, and broaden its footprint in brain-computer interfaces, brain neuroscience, psychiatric disorders, and other healthcare fields.

In Zhang Yue's view, chairman of Aoyou International, Dongxing Medical's 20 million yuan outlay is a light-asset, exploratory positioning move. Lin Xianping, deputy secretary-general of the China City Expert Think Tank Committee and associate professor at Zhejiang University City College, notes that Dongxing Medical's deep roots in surgical instruments allow it to repurpose medical device registration, production quality control, supply chain management, and hospital channel resources, giving it synergy potential in implantable device manufacturing. However, brain-computer interfaces span multiple disciplines—brain science, chip algorithms, and biomaterials—so the company's core underlying technology may need to be supplemented through external industry-academia partnerships.

Frequent External Expansion Moves

Behind this brain-computer interface push, Dongxing Medical's financial performance has been through a period of volatility. Financial data shows that from 2024 to 2025, the company's revenue slipped from approximately 435 million yuan to 387 million yuan, while net profit attributable to shareholders swung from roughly 97.42 million yuan to a loss of about 37.94 million yuan, marking its first annual loss since going public. Entering 2026, performance has started to recover. In the first half of 2026, Dongxing Medical generated approximately 180 million yuan in revenue, down 1.63% year-on-year, while net profit attributable to shareholders reached around 34.14 million yuan, up 12.69% year-on-year.

In recent years, beyond its core business, Dongxing Medical has pursued a fairly active external expansion strategy. Leveraging Changzhou Dongxing Biopharmaceutical Co., Ltd., a wholly-owned subsidiary set up in 2024, the company has moved into the synthetic biology sector. At the same time, Dongxing Medical has incorporated surgical robots into its key exploration areas. According to the 2026 semi-annual report, subsidiary Changzhou Zihang Medical Technology Co., Ltd. has expanded into the processing of components for endoscopic and laparoscopic surgical robots during the reporting period, generating approximately 382,200 yuan in related revenue. The company's puncture devices are also compatible with endoscopic surgical robot clinical scenarios. In July 2026, Dongxing Medical completed the acquisition of a 90% stake in Wuhan Yijiabao Biomaterials Co., Ltd. (Yijiabao) for approximately 770 million yuan. Yijiabao specializes in the R&D, production, and sale of orthopedic and biomedical materials. Dongxing Medical continues to advance its surgical platform strategy, building a multi-dimensional product matrix covering intraoperative and postoperative needs. This acquisition adds product and market coverage in areas like orthopedic implants and surgical dressings. When contacted for comment, Beijing Business Today reporters sent an inquiry to Dongxing Medical, but had not received a response by the time of publication.

Listed Drug Makers Rush to Stake Claims

According to the "China Brain-Computer Interface Commercialization Forward-Looking Report," the market size is expected to surpass 5 billion yuan in 2026 and exceed 15 billion yuan by 2030. In 2026, brain-computer interfaces were written into the government work report for the first time, designated as one of the future industries to be prioritized during the "15th Five-Year Plan" period. Meanwhile, clinical trials have also seen frequent breakthroughs, demonstrating that brain-computer interfaces are accelerating from lab concepts to real clinical applications. Facing this hot new track, A-share listed pharmaceutical firms are moving swiftly. Based on incomplete statistics from Beijing Business Today, multiple listed drug makers, including Keyuan Pharmaceutical, New Journey, and Tailong Pharmaceutical, have entered the brain-computer interface arena through different approaches this year.

At the start of the year, Keyuan Pharmaceutical established a wholly-owned subsidiary, Keyuan Linghang Technology (Beijing) Co., Ltd. (Keyuan Linghang), and used it as a platform to take a stake in Beijing Hangnao Technology Co., Ltd. (Hangnao Technology). Hangnao Technology, with a registered capital of 20 million yuan, focuses on R&D and industrialization of brain-computer interfaces and general artificial intelligence technology. In August, New Journey planned to acquire a 51% stake in Shandong Zepu Medical Technology Co., Ltd. (Zepu Medical) for approximately 437 million yuan, positioning itself in the brain-computer interface sector. Zepu Medical is reportedly in the process of obtaining Class II medical device registration for multiple non-invasive brain-computer interface products. Previously, New Journey also set up a wholly-owned subsidiary, Beijing New Journey Intelligent Robotics Co., Ltd., and jointly established the "Peking University–New Journey Brain-Computer Interface Joint Laboratory" with Peking University. In September, Tailong Pharmaceutical, together with the Shanghai Zhangjiang University Collaborative Innovation Research Institute, officially inaugurated the "Brain-Computer Interface and Artificial Intelligence Engineering Center" and launched a six-party industry alliance.

Zhang Lei, director of the Beijing Brain Institute technology platform and general manager of Xinzhida, believes that the current opportunities in the brain-computer interface industry remain concentrated in disease treatment. Because the technology is highly advanced, its commercial rollout depends on clear, rigid demand scenarios, and disease treatment sits at the core of that demand, with applications potentially extending from hospital settings to home care. At the same time, the industry's primary risk lies in whether the real clinical efficacy of products can withstand validation and scrutiny.