报名：首届全球眼科大会 | 议程更新 报名：首届全球心血管大会 | 奖项申报 报名：首届全球骨科大会 | 奖项评选 合作伙伴征集：2025全球手术机器人大会 2025年4月8日至11日， 第91届中国国际医疗器械（春季）博览会（CMEF） 将在上海国家会展中心拉开帷幕。作为亚太地区规模最大的医疗科技展会，CMEF始终 是行业风向标，不仅汇聚全球创新技术，更见证着产业发展的新趋势。本届展会预计吸引 全球30多个国家和地区的近 5000家 企业，携 数万款 前沿产品集中亮相 ，以"创新科技，智领未来"为主题，共同探讨医疗科技的突破与未来。 CMEF不仅是一场产品与技术的集中展示，更是医疗行业生态的一次深度联动。从人工智能驱动的医学影像，到手术机器人赋能精准医疗，从智慧医院建设，到国 产医疗设备的崛起，CMEF2025通过高规格论坛、产业对话和技术展示，构建起全方位的交流平台，为行业发展提供新的思路与动能。 在这一医疗科技的年度盛会上，哪些企业将携最新技术亮相？哪些创新产品值得重点关注？ 思宇梳理了本届CMEF的亮点企业，一起来看它们如何在这场科技盛宴 中抢占先机！ P.S. 展位图附于文末，感兴趣的读者可按图索骥 ...

Investment Rating - The investment rating for the company is "Buy" [1][3]. Core Views - The company's 2024 operating performance is stable, and the increase in dividend payout ratio reflects a strong commitment to shareholder returns [3]. - The company has maintained a "Buy" rating based on its 2024 performance and operational trends, with a downward adjustment in the EPS forecast for 2025-2026 [9]. Financial Summary - In 2024, the company achieved revenue of 13,087 million RMB, a year-on-year decline of 1.1%, while the net profit was 2,067 million RMB, showing a growth of 4.2% after excluding one-time impacts from 2023 [9]. - The orthopedic segment reported revenue of 1,440 million RMB, up 13.2%, with operating profit increasing by 196% [9]. - The drug packaging segment generated revenue of 2,280 million RMB, reflecting a growth of 12.6%, driven by high growth in pre-filled syringes and new product launches [9]. - The interventional segment's revenue was 1,980 million RMB, a modest increase of 2.5%, with domestic pressures offset by good overseas growth [9]. - The medical device and blood management segments faced revenue declines, with the medical device segment down 6.5% to 6,510 million RMB, while the blood management segment's revenue fell by 15.8% to 880 million RMB [9]. - The company plans to increase its cash dividend payout ratio to 50% by the end of 2024, with a proposed dividend of 0.1235 RMB per share, totaling 985 million RMB, a 29% increase year-on-year [9]. Growth Strategy - The company is actively developing nine new product series to create a second growth curve, focusing on the perioperative product portfolio and chronic disease management products [9]. - The company aims to leverage its sales channel advantages to ensure rapid market penetration of new products, contributing to revenue growth [9].

Core Viewpoint - CICC maintains a "outperform" rating for Weigao Group (01066) with a target price of HKD 6.4, reflecting a price-to-earnings ratio of 9.3/8.2 times for 2025/2026 [1] Financial Performance - In 2024, Weigao Group reported revenue of RMB 13.09 billion, a year-on-year decrease of 1.1%, and a net profit attributable to shareholders of RMB 2.07 billion, which, after excluding one-time gains from 2023, represents a year-on-year increase of 4.2% [1] - The breakdown of revenue by business segment shows: - Medical devices revenue at RMB 6.51 billion, down 6.5% year-on-year, with operating profit of RMB 1.07 billion, up 1% [2] - Orthopedic revenue at RMB 1.44 billion, up 13.2% year-on-year, with operating profit of RMB 0.22 billion, up 196% [2] - Pharmaceutical packaging revenue at RMB 2.28 billion, up 12.6% year-on-year [2] - Interventional segment revenue up 2.5% year-on-year [2] - Blood management revenue at RMB 0.88 billion, down 15.8% year-on-year, with operating profit down 41.4% [2] Growth Potential - The company is expected to enter a double-digit growth phase as it develops new business lines, including perioperative products, urology, endocrinology, endoscopy, and intravenous therapy in the medical device segment, as well as artificial bones and sports medicine in orthopedics [3] - The anticipated revenue growth rate for 2025 is projected to be between 10-15% due to the positive outlook on both new and existing business lines [3] Shareholder Returns - Weigao Group announced a final dividend of RMB 0.1235 per share, raising the total dividend payout ratio for 2024 to 50% [4] - The company is expected to maintain a high level of dividends and has announced a share buyback program starting in February 2025 [4]

威高股份 20250326 摘要 Q&A 威高股份在 2024 年面临的主要挑战和机遇是什么？ 2024 年，威高股份面临复杂多变的国内外宏观环境和医疗器械行业加速变革的 挑战。政策层面，集采常态化持续推进，对产品价格带来了下行压力，迫使企 业加速创新降本增效。同时，国家对创新医疗器械和设备的支持力度不断加大， 鼓励企业增加研发投入，推动高端医疗器械国产替代。市场方面，人口老龄化 和居民健康意识不断提升，使得医疗器械市场需求呈现结构性变化。一方面， 基层医疗需求日益增长；另一方面，高端医疗器械需求也与日俱增。技术层面， • 威高股份 2024 年营收 131 亿元，净利润 20.7 亿元，同比增长 5%，通过平 台化、国际化、数字化和人才战略，实现生态协同拓展、海外市场突破、 运营效率提升及创新研发驱动，巩固行业领先地位。 • 临床护理板块收入 63.22 亿元，同比下降 9%，但通过优化产品结构、提升 市场占有率、推动自动化生产和改进产品性能，积极应对集采降价影响， 并计划拓展数智化产品等新业务。 • 骨科板块收入 14.4 亿元，同比增长 13%，经营利润增长 187%，受益于集采 和国产替代，运动医学、 ...

Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of approximately RMB 13,087,071,000, a decrease of 1.1% compared to RMB 13,229,453,000 in the previous year[4] - The net profit attributable to the company's owners was approximately RMB 2,066,668,000, representing a growth of 3.2% from RMB 2,001,906,000 in the prior year[4] - Excluding special items, the net profit attributable to the company's owners was RMB 2,066,668,000, an increase of 4.2% compared to RMB 1,982,432,000 in the previous year[4] - The basic earnings per share for the year was RMB 0.46, up from RMB 0.44 in the previous year[6] - Total comprehensive income for the year was RMB 2,264,712,000, compared to RMB 2,119,784,000 in the previous year[6] - The group reported a total segment profit of RMB 2,304,781,000 for the year ended December 31, 2024, compared to RMB 2,166,194,000 in the previous year, reflecting an increase of 6.4%[14][15] - The company achieved a gross profit of RMB 6,580,631,000, a decrease of 0.9% compared to the previous year[66] Dividends and Shareholder Returns - The company proposed a final dividend of RMB 0.1235 per share, compared to RMB 0.0943 per share in the previous year, pending shareholder approval[3] - The total dividends declared for the year amounted to RMB 851,052,000, an increase of 22.2% from RMB 696,565,000 in 2023[39] - The proposed final dividend for the year ending December 31, 2024, is RMB 0.1235 per share, totaling RMB 564,473,092, compared to RMB 431,010,628 for the previous year[97] - The final dividend will be subject to shareholder approval at the upcoming annual general meeting scheduled for May 27, 2025[97] Assets and Liabilities - The company's total assets amounted to RMB 28,679,345,000, an increase from RMB 26,088,190,000 in the previous year[8] - The company's cash and bank balances rose to RMB 7,780,310,000 from RMB 6,988,731,000 in the previous year[8] - The company’s non-current liabilities increased significantly to RMB 3,337,779,000 from RMB 2,095,485,000 in the previous year[8] - Total liabilities as of December 31, 2024, were RMB 9,418,283 thousand, a decrease from RMB 9,677,526 thousand in 2023[18] - The total accounts payable was RMB 4,473,851,000, a slight decrease from RMB 4,546,147,000 in 2023[51] Research and Development - Research and development expenses increased to RMB 625,233,000 from RMB 592,850,000 in the previous year[5] - Research and development expenses totaled approximately RMB 625,233,000, accounting for 4.8% of the group's revenue, compared to 4.5% in 2023[57] - The group acquired 150 new product registrations and obtained 127 new patents during the year[55] Market Segments and Revenue Sources - The medical device segment generated revenue of RMB 6,512,192,000, accounting for 49.8% of total revenue, while the orthopedic products segment contributed RMB 1,439,446,000, representing 11%[14] - Sales of medical device products amounted to RMB 6,296,502 thousand, down 6.43% from RMB 6,727,859 thousand in the previous year[22] - Orthopedic product sales increased by 13.23% to RMB 1,439,446 thousand from RMB 1,271,203 thousand[22] - Revenue from blood management products decreased by 15.77% to RMB 876,777 thousand compared to RMB 1,041,994 thousand in 2023[22] - The pharmaceutical packaging business achieved revenue of approximately RMB 2,278,608,000, representing a growth of 12.6% year-on-year[56] Employee and Operational Metrics - The company employed a total of 12,719 employees as of December 31, 2024, an increase from 12,519 in the previous year[63] - The total employee costs amounted to RMB 2,431,338,000, up from RMB 2,209,253,000, reflecting an increase of 10.0%[37] Corporate Governance and Compliance - The company has confirmed the independence of its non-executive directors in accordance with the listing rules[89] - The audit committee has reviewed the audited consolidated financial statements for the year and found them to comply with applicable accounting standards[88] - The company has maintained high standards of corporate governance throughout the year, adhering to the corporate governance code[91] Future Plans and Investments - The group plans to continue expanding its product lines and market presence, particularly in the medical device and blood management sectors, to drive future growth[12] - The company plans to continue expanding production facilities and improving production processes to meet future market demand[58] - The group plans to invest approximately RMB 250,000,000 in the new pre-filled syringe and automatic injection pen production lines, expected to commence production in 2026[72] - The group plans to invest RMB 770,000,000 in the Songyuan Health Medical Industry Fund, accounting for 38.5%, with a cumulative investment of RMB 308,000,000[72] Financial Management and Taxation - Current corporate income tax expense increased to RMB 497,733,000, up 23.5% from RMB 403,063,000 in the previous year[32] - The company has a cumulative tax provision of RMB 31,180,000 related to product liability claims, a decrease from RMB 34,962,000 in the previous year[29] - The company’s effective tax rate remains at 15% for certain subsidiaries recognized as high-tech enterprises[33] Miscellaneous - The company recorded a net gain of RMB 4,474,000 from litigation, a significant decrease from RMB 28,548,000 in the previous year[29] - The company received government subsidies amounting to RMB 59,563,000, down from RMB 79,142,000 in the previous year[27] - The company will suspend the transfer of H shares from June 4, 2025, to June 10, 2025, to determine the entitlement to the proposed final dividend[96] - The annual report for the year ending December 31, 2024, is expected to be distributed to shareholders around April 30, 2025[99]

Investment Rating - The report initiates coverage with a "Buy" rating and sets a target price of HKD 5.60 [4][66]. Core Views - The company is expected to emerge from the shadow of centralized procurement, with significant growth anticipated in its drug packaging and orthopedic product segments starting in 2024 [2][4][39]. - The medical device sector is projected to recover post-procurement, with a gradual increase in demand for low-value consumables as hospital visits and bed occupancy rates rise [3][40]. Summary by Sections Company Overview - The company is a well-known medical consumables manufacturer, with a broad sales network covering over 5,000 hospitals and 400 blood stations by the end of 2023 [1][17]. - Its product range includes syringes, infusion devices, orthopedic products, interventional products, and blood management products [1][17]. Financial Projections - Revenue for 2024 is projected to increase by 0.4% to RMB 13.278 billion, with a compound annual growth rate (CAGR) of 3.9% expected from 2023 to 2026 [5][53]. - The net profit for 2024 is expected to be RMB 2.024 billion, reflecting a 1.1% increase [5][54]. Drug Packaging Business - The drug packaging segment is anticipated to grow at a CAGR of 10.3% from 2023 to 2026, driven by the increasing demand for pre-filled syringes and pre-filled flushing syringes [2][20][28]. - The pre-filled syringe sales are expected to see a CAGR of 12.6% during the same period, with a significant market share of over 70% in China [21][28]. Orthopedic Products - After experiencing revenue declines due to centralized procurement, the orthopedic segment is expected to recover starting in 2024, with a projected CAGR of 11.8% from 2023 to 2026 [2][29]. - Sales of spinal, trauma, and joint products have shown a rebound, indicating a growing end-user demand [2][33]. Interventional Products - The interventional product segment is projected to maintain steady growth, with a CAGR of 5.3% from 2023 to 2026, supported by the global recognition of the company's products [3][35]. Medical Device Sector - The medical device sector is expected to recover from the impacts of centralized procurement, with revenue anticipated to stabilize and grow from 2025 onwards [3][40]. - The demand for low-value consumables is expected to increase as hospital activity resumes, with sales of key products like infusion devices and syringes showing positive growth trends [3][40]. Blood Management Business - The blood management segment is expected to remain stable in the short term, with a projected revenue decline of 17.4% in 2024, but long-term stability is anticipated due to supportive government policies [51][52].

Investment Rating - The investment rating for the company is "Outperform the Market" [3][13][18] Core Insights - The company's revenue for the first half of 2024 was 6.636 billion (down 3.8%), with a net profit of 1.108 billion (down 7.5%), but a quarter-on-quarter growth of 37.7% in net profit [1][5] - The company is experiencing improved profitability despite challenges from centralized procurement and the impact of pandemic-related product sales [1][5] - The board has proposed an interim dividend of approximately 420 million, maintaining a 40% payout ratio [1][5] Revenue Breakdown - Medical Devices: Revenue of approximately 3.189 billion (down 7.7%), with stable growth in major product sales between 5%-15% [6][10] - Pharmaceutical Packaging: Revenue of approximately 1.168 billion (up 10.0%), with strong demand for pre-filled syringes and a market share increase [6][10] - Orthopedics: Revenue of 745 million (down 6.5%), with significant sales growth in spinal, trauma, and joint products between 20%-40% [6][10] - Interventional Business: Revenue of 1.114 billion (up 5.0%), with stable performance in the US and robust growth in Europe [6][10] Financial Metrics - The gross profit margin for the first half of 2024 was 50.9% (down 0.5 percentage points year-on-year), while the net profit margin decreased to 17.4% (down 0.6 percentage points year-on-year) [7][9] - Operating cash flow for the first half of 2024 was 1.023 billion, with cash content of net profit exceeding 90% [9][10] - The company has adjusted its revenue forecasts for 2024-2026 to 13.66 billion, 14.46 billion, and 15.43 billion respectively, with corresponding net profits of 2.186 billion, 2.351 billion, and 2.539 billion [12][16]

Financial Performance - For the six months ended 30 June 2024, the unaudited revenue was approximately RMB6,635,688,000, representing a decrease of approximately 3.8% compared to the same period in 2023 (RMB6,897,700,000) [1] - The unaudited net profit attributable to the owners of the Company for the same period was approximately RMB1,107,549,000, reflecting a decrease of approximately 7.5% from RMB1,197,767,000 in 2023 [1] - Gross profit for the six months ended 30 June 2024 was RMB3,376,443,000, compared to RMB3,543,479,000 in 2023, indicating a decline [7] - Profit before taxation for the period was RMB1,366,379,000, down from RMB1,468,339,000 in 2023 [7] - Total comprehensive income for the period was RMB1,170,647,000, compared to RMB1,397,133,000 in the same period of 2023 [9] - Earnings per share (basic) decreased to RMB0.25 from RMB0.27 in the previous year [9] - The company's profit for the period was RMB 1,107,549,000, a decrease from RMB 2,001,906,000 in the previous year, marking a decline of 44.7% [81] Dividends - The Board proposed an interim dividend of RMB0.0919 per share for the six months ended 30 June 2024, an increase from RMB0.0734 per share in the same period of 2023 [2] - The company recognized dividends of RMB 425,093,000 during the period, compared to RMB 356,122,000 in the previous year, marking an increase of 19.4% [19] - The company recognized dividends of RMB 425,093,000 during the period, compared to RMB 687,000,000 in the previous year, indicating a reduction of 38.1% [81] Assets and Liabilities - Non-current assets as of 30 June 2024 amounted to RMB15,001,564,000, slightly down from RMB15,035,940,000 as of 31 December 2023 [11] - As of June 30, 2024, the company's current assets amounted to RMB 19,540,925,000, an increase of 4.9% from RMB 18,634,291,000 as of December 31, 2023 [13] - The net current assets reached RMB 13,581,294,000, up from RMB 11,052,250,000, reflecting a growth of 23% [13] - The total equity attributable to owners of the company increased to RMB 23,075,789,000, a rise of 2.8% from RMB 22,449,121,000 [14] - The total liabilities of the company as of June 30, 2024, were RMB 5,024,718,000, up from RMB 4,546,147,000 at the end of 2023, representing an increase of 10.5% [78] - The non-current liabilities increased to RMB 283,497,000 as of June 30, 2024, from RMB 226,363,000 at the end of 2023, reflecting a rise of 25.3% [78] Cash Flow - The company reported a net cash inflow from operating activities of RMB 1,022,774,000, down from RMB 1,117,151,000 in the previous year, a decline of 8.5% [17] - The net cash outflow from investing activities was RMB 447,281,000, which is an increase in outflow compared to RMB 268,164,000 in 2023 [17] - Cash and cash equivalents at the end of the period were RMB 5,115,081,000, slightly down from RMB 5,167,185,000 at the end of June 2023 [17] - The Group's cash and bank balance as of June 30, 2024, amounted to approximately RMB 7,527,635,000 [122] Segment Performance - Medical device products generated revenue of RMB 3,323,265,000, accounting for approximately 50% of total revenue [41] - The Group's orthopaedic products segment reported revenue of RMB 744,991,000, with a segment profit of RMB 86,662,000 [41] - Interventional products generated revenue of RMB 1,010,341,000, with a segment profit of RMB 32,959,000 [41] - Pharma packaging products achieved revenue of RMB 1,167,605,000, contributing a segment profit of RMB 475,031,000 [41] - Blood management products generated revenue of RMB 420,115,000, with a segment profit of RMB 33,070,000 [41] - The Group's total segment profit for the six months ended June 30, 2024, was RMB 1,256,051,000 [41] Research and Development - Total research and development expenses amounted to approximately RMB301,613,000, representing 4.5% of the Group's revenue [102] - The Group obtained 55 new patents and has 171 patents under application in the PRC, with 56 new product registration certificates received [97] - As of June 30, 2024, the Group had 827 product registration certificates and 996 patents in the PRC [101] Operational Strategy - The Company has formulated a three-pronged operational strategy focusing on "platform-based," "internationalized," and "digitalized" development, supported by "talents" and "innovation" strategies [158] - The Group continues to optimize production and supply chain management to reduce costs and better adapt to market conditions [153] - The Group emphasizes responsible operation and green development, integrating energy conservation and emission reduction initiatives into its production and operations [157] Share Capital and Incentive Scheme - A total of 94,260,000 shares have been issued under the specific mandate, with 129,558,616 shares remaining available for issuance, representing approximately 2.83% of the total issued share capital [181] - The maximum number of shares that may be granted to eligible participants under the Incentive Share Scheme is capped at 0.5% of the issued share capital at the date of grant [181] - The Incentive Share Scheme will be effective for a term of 10 years, expiring on November 16, 2024 [182] - The company aims to attract and retain quality talents through the Incentive Share Scheme, aligning interests between management and employees [177] Customer Base - The Group added 112 hospitals, 29 other medical institutions, and 129 distributors to its PRC customer base, totaling 10,040 customers [107] - The total overseas customers reached 7,501, including 3,269 hospitals and 2,245 distributors [108]

Financial Performance - Revenue for the six months ended June 30, 2024, was approximately RMB 6,635,688,000, a decrease of about 3.8% compared to RMB 6,897,700,000 in the same period of 2023[2] - Net profit attributable to the owners of the company for the same period was approximately RMB 1,107,549,000, down 7.5% from RMB 1,197,767,000 in 2023[2] - Gross profit for the six months was RMB 3,376,443,000, down from RMB 3,543,479,000 in 2023, reflecting a decrease in gross margin[4] - For the six months ended June 30, 2024, the company reported a net profit of RMB 1,107,549,000, a decrease of 7.5% compared to RMB 1,197,767,000 for the same period in 2023[15] - Total revenue for the six months ended June 30, 2024, was RMB 6,635,688,000, down from RMB 6,897,700,000 in the same period of 2023, representing a decline of approximately 3.8%[24][26] - The company's pre-tax profit reached RMB 1,107,549,000 for the six months ending June 30, 2024, compared to RMB 1,197,767,000 in the same period of 2023, reflecting a decrease of approximately 7.5%[37] Dividends - The board proposed an interim dividend of RMB 0.0919 per share, compared to RMB 0.0734 per share in the same period last year[2] - The company confirmed a dividend distribution of RMB 425,093,000 for the six months ended June 30, 2024, compared to RMB 356,122,000 in the previous year, marking an increase of 19.4%[15] - The interim dividend payment rights will be determined from October 22, 2024, to October 25, 2024, during which H-share transfer registration will be suspended[92] - The deadline for submitting transfer documents for the interim dividend is October 21, 2024, at 4:30 PM[93] - The interim dividend will be distributed on November 22, 2024, or before, to eligible shareholders at their registered addresses[93] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 19,540,925,000, an increase from RMB 18,634,291,000 at the end of 2023[9] - The company’s total equity attributable to owners increased to RMB 23,075,789,000 from RMB 22,449,121,000 at the end of 2023[10] - The company’s non-current assets increased to RMB 15,001,564,000 from RMB 15,035,940,000 at the end of 2023, indicating stability in long-term investments[9] - The company’s total assets as of June 30, 2024, were RMB 10,262,082,000, compared to RMB 9,949,993,000 as of December 31, 2023, indicating an increase of approximately 3.1%[41] - The total liabilities increased from RMB 4,546,147,000 to RMB 5,024,718,000, with current liabilities rising from RMB 4,319,784,000 to RMB 4,741,221,000[52] Research and Development - Research and development expenses increased to RMB 301,613,000 from RMB 294,558,000 in the previous year, indicating a focus on innovation[4] - Research and development expenses for the six months ended June 30, 2024, were approximately RMB 301,613,000, accounting for 4.5% of total revenue[63] - The company continues to focus on research and development in medical devices, orthopedic products, and blood management products, aiming for market expansion and technological advancements[17][22] Operational Highlights - The external sales breakdown for the six months ended June 30, 2024, included RMB 3,292,636,000 from medical devices, RMB 744,991,000 from orthopedic products, and RMB 1,167,605,000 from pharmaceutical packaging[24] - The company added 112 new hospital clients, 29 other medical institutions, and 129 distributors in the domestic market during the reporting period[65] - The company is actively expanding production capacity and improving production processes to meet future market growth demands[64] - The company is focusing on internationalization, digitalization, and platformization as part of its strategic initiatives to adapt to market changes and enhance competitiveness[86] Cost Management - The total cost of goods sold was RMB 3,259,245,000, a decrease from RMB 3,354,221,000 in the previous year, representing a decline of about 2.8%[30] - The group actively reduced production costs to offset the impact of price reductions on gross profit margin[59] Shareholder Information - A total of 94,260,000 shares have been issued under the incentive share plan, with 129,558,616 shares remaining available for issuance, representing approximately 2.83% of the total issued share capital[96] - The maximum number of shares that can be granted to eligible participants under the incentive share plan is capped at 0.5% of the issued share capital on the grant date[96] - As of June 30, 2024, a total of 1,110,000 shares from the first batch of share rewards are exercisable, along with 14,456,000 shares held by the trustee for the benefit of the incentive share plan[99] Corporate Governance - The company has complied with all corporate governance codes as of June 30, 2024, ensuring high standards of governance[7] - The audit committee, consisting of four independent non-executive directors, has reviewed the unaudited consolidated financial statements for the six months ending June 30, 2024[9] - The company is committed to maintaining high standards of corporate governance for long-term success and sustainable development[7] - The board of directors includes a diverse group of members, ensuring a range of perspectives in decision-making[15]

Investment Rating - The investment rating for the company is "Buy" [3][11]. Core Views - The company's performance in 2023 was impacted by centralized procurement and high base effects from pandemic-related products, resulting in a 3.8% decline in revenue to 132.29 billion and a 27.6% drop in net profit to 20.02 billion [1][4]. - Despite the challenges, the company has maintained healthy cash flow, with operating cash flow reaching 27.99 billion and free cash flow increasing by 34% to a record high of 22 billion [7][9]. - The company is optimistic about its growth potential, supported by its established brand, quality control, scale advantages, and cost benefits, which create multiple barriers to competition [10][12]. Summary by Sections Financial Performance - In 2023, the company achieved revenue of 132.29 billion, down 3.8% year-on-year, and net profit of 20.02 billion, down 27.6% year-on-year [1][4]. - The medical device segment generated approximately 67.28 billion in revenue, a 2.4% increase, while the pharmaceutical packaging segment saw revenue of 20.24 billion, down 3.9% [6][9]. - The orthopedic business experienced a significant decline of 37.6% in revenue to 12.71 billion due to price reductions from centralized procurement [6][9]. Cost and Margin Analysis - The gross margin for 2023 was 50.2%, a decrease of 2.0 percentage points, primarily due to price reductions and changes in product mix [7][9]. - The net profit margin fell to 15.6%, down 5.7 percentage points, influenced by increased financing costs and operational adjustments [7][9]. Future Projections - The company has revised its profit forecasts for 2024-2025, now expecting net profits of 22.6 billion and 25.7 billion, respectively, with a projected growth rate of 13.0% and 13.6% [10][12]. - The diluted EPS is expected to be 0.49, 0.56, and 0.63 for 2024, 2025, and 2026, respectively, with corresponding PE ratios of 10, 9, and 8 [10][12]. Strategic Initiatives - The company is focusing on optimizing its product structure and expanding into new business areas, including life information support, chronic disease management, and digital clinical care products [9][10]. - The orthopedic segment is undergoing management adjustments to enhance its market position and address challenges from centralized procurement [6][9].