LifeTech Scientific Corporation 先 健 科 技 公 司 (Incorporated in the Cayman Islands with limited liability) The English and Chinese versions of the Company's Current Corporate Communication are available on the Company's website at www.lifetechmed.com and the website of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") at www.hkexnews.hk respectively (the "Website Version"). The Company strongly recommends that you access the Website Version of Current Corporate Communication. If you have difficult ...

LifeTech Scientific Corporation 先 健 科 技 公 司 (Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立之有限公司） （Stock Code 股份代號：1302） NOTIFICATION LETTER 通知信函 Dear Registered Shareholders, LifeTech Scientific Corporation (the "Company") – Notice of publication of Interim Report 2025 (the "Current Corporate Communication") The English and Chinese versions of the Company's Current Corporate Communication are now available on the Company's website at www.lifetechmed.com and the website of The Stock E ...

目 錄 公司資料 2 財務摘要 4 管理層討論與分析 5 企業管治摘要 20 其他資料 22 簡明綜合損益及其他全面收益表 39 簡明綜合財務狀況表 40 簡明綜合權益變動表 42 簡明綜合現金流量表 43 簡明綜合財務報表附註 44 公司資料 二零二五年八月二十九日 執行董事 謝粵輝 （主席兼首席執行官） 劉劍雄 （常務副總裁、首席財務官兼公司秘書） 阮杏梅 （首席合規官） 非執行董事 姜峰 獨立非執行董事 梁顯治 （主席） 周路明 王皖松 提名委員會 周路明 （主席） 謝粵輝 梁顯治 阮杏梅（於二零二五年五月二十三日獲委任） 王皖松（於二零二五年五月二十三日獲委任） 薪酬委員會 王皖松 （主席） 謝粵輝 梁顯治 梁顯治 王皖松 周路明 公司秘書 劉劍雄 授權代表 謝粵輝 劉劍雄 審核委員會 香港股份過戶登記處 卓佳證券登記有限公司 香港夏愨道16號 遠東金融中心17樓 網站 www.lifetechmed.com 股份代號 1302 在GEM上市日期 二零一一年十一月十日 由GEM轉往主板上市的日期 二零一三年十一月六日 主要往來銀行 招商銀行股份有限公司 深圳車公廟支行 中國深圳福田 車公廟天安工業區 ...

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 先健科技公司 (在開曼群島註冊成立的有限公司) 呈交日期: 2025年9月3日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01302 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 40,000,000,000 | USD | 0.00000125 | USD | | 50,000 | | 增加 / 減少 (-) | | | 0 | | | USD | | 0 | | 本月底結存 | | | 40,000,000,000 | USD | 0.00000125 | USD | | 50,000 | ...

Investment Rating - The report suggests a positive outlook for the medical device industry, indicating that the adjustment period is nearing its end and a recovery is expected in the second half of 2025 [2][4]. Core Insights - The medical device sector is experiencing a recovery trend, with domestic bidding demand showing signs of restoration in the second half of 2025 after a significant decline due to policy delays [2]. - The medical consumables segment is steadily growing, with a slight increase in gross margin, indicating resilience in demand related to patient treatment needs [2]. - The in-vitro diagnostics sector is under pressure, but there is potential for increased domestic market share for local manufacturers in the long term [2]. - Leading medical device companies are accelerating their overseas market expansion, with many reporting higher growth rates in international markets compared to domestic ones [2]. Summary by Sections Medical Equipment - Revenue for Q2 2025 showed a year-on-year decline of 5.26%, with net profit down 27.93% and gross margin decreasing from 53.07% in Q2 2024 to 49.00% in Q2 2025 [16]. - The industry is expected to reach a turning point as domestic bidding demand recovers [2][18]. Medical Consumables - Q2 2025 revenue increased by 1.33% year-on-year, with net profit down 6.28% and a slight improvement in gross margin from 42.13% to 42.24% [23]. - The segment is characterized by stable growth, with companies focusing more on R&D and innovative products [2]. In-Vitro Diagnostics - Revenue for Q2 2025 decreased by 16.53% year-on-year, with net profit down 37.58% and gross margin declining from 62.43% to 59.66% [29]. - The sector faces short-term demand pressure but may benefit from increased domestic production rates in the long run [2]. Investment Recommendations - The report recommends focusing on three key areas: companies leading in international market product and channel expansion, domestic medical device industry leaders, and high-value consumables firms with strong innovation capabilities [34]. - Specific companies to watch include Nanwei Medical, Mindray Medical, Sanofi, and Xinjiang Technology [34].

Core Insights - The company reported a revenue of approximately RMB 676.7 million for the six months ending June 30, 2025, representing a year-on-year increase of about 3.7% [1] - The net profit attributable to shareholders increased by approximately 2.1% to around RMB 238.5 million, compared to RMB 233.6 million in the same period last year, after excluding certain non-recurring items [1] - The company submitted 73 patent applications during the period, with 41 patents successfully approved, highlighting its commitment to intellectual property as a key driver of competitiveness in the medical device market [1] Financial Performance - Domestic sales increased by approximately 2.2% compared to the same period in 2024, while overseas sales grew by about 8.0%, attributed to the company's proactive overseas expansion and effective marketing strategies [1] - Non-recurring items included other income from financial assets measured at fair value of approximately RMB 9.9 million, down from RMB 32.9 million in the same period of 2024, and share-based payment expenses of approximately RMB 193.5 million, up from RMB 61.3 million in 2024 [1] Future Outlook - The company will continue to focus on international business expansion while maintaining overall operational efficiency [2] - There is a strong commitment to technological innovation, with ongoing investments in new technology development and product upgrades to meet changing market demands [2] - The company aims to maintain a prudent capital allocation strategy to ensure sustainable growth and create value for all stakeholders [2]

Core Viewpoint - The company reported a revenue increase of approximately 3.7% year-on-year for the first half of 2025, driven by sales of coated stents and left atrial appendage occluders, despite a significant decline in net profit due to non-recurring items [1] Financial Performance - Revenue for the first half of 2025 was approximately 677 million, an increase of about 3.7% year-on-year [1] - Gross profit was approximately 498 million, representing a year-on-year decrease of about 3.4% [1] - Profit attributable to shareholders was 55.074 million, a significant decrease of 73.21% year-on-year [1] - Earnings per share were 1.3 cents [1] Margin Analysis - Gross margin decreased by 5.3 percentage points year-on-year to approximately 73.6% [1] - The decline in gross margin was attributed to the impact of centralized procurement policies, which led to a decrease in sales prices for certain products in specific regions, as well as changes in the sales mix [1]

Core Points - The company, Xianjian Technology (01302), reported a mid-year revenue of approximately 677 million, representing a year-on-year increase of about 3.7% [1] - Gross profit was approximately 498 million, showing a year-on-year decrease of about 3.4% [1] - Profit attributable to shareholders was 55.074 million, a significant year-on-year decrease of 73.21%, with earnings per share at 1.3 cents [1] Revenue and Profit Analysis - The increase in revenue was primarily driven by higher sales of coated stents and left atrial appendage occluders [1] - The gross profit margin decreased by 5.3 percentage points year-on-year to approximately 73.6%, mainly due to the impact of centralized procurement policies leading to a decline in sales prices of certain products in specific regions, as well as changes in the sales mix [1] - The decrease in net profit was mainly attributed to fluctuations in non-recurring items [1]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Interim Results Overview](index=1&type=section&id=Interim%20Results%20Overview) For the six months ended June 30, 2025, the company's revenue increased by 3.7% to RMB 676.7 million, but gross profit decreased by 3.4% to RMB 497.8 million, with net profit significantly impacted by non-recurring items - The Board does not recommend paying any interim dividend for the six months ended June 30, 2025 (2024: nil)[3](index=3&type=chunk) - Changes in non-recurring items, including a decrease in other gains from financial assets at fair value through profit or loss from approximately **RMB 32.9 million** in 2024 to **RMB 9.9 million** in 2025, and a significant increase in share-based payment expenses from approximately **RMB 61.3 million** to **RMB 193.5 million**, were the primary reasons for the substantial decrease in net profit[4](index=4&type=chunk) Key Financial Indicators for the Six Months Ended June 30 | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 676.7 | 652.8 | +3.7% | | Gross Profit | 497.8 | 515.4 | -3.4% | | Profit attributable to owners of the company (excluding non-recurring items) | 238.5 | 233.6 | +2.1% | | Profit attributable to owners of the company (including non-recurring items) | 55.1 | 205.6 | -73.2% | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, group revenue increased to RMB 676.7 million, but gross profit declined due to higher cost of sales, with operating and period profit significantly reduced by increased expenses and share-based payments - Other comprehensive income (expense) shifted from a loss of **RMB 93,205 thousand** in 2024 to a gain of **RMB 25,697 thousand** in 2025, primarily due to fair value gains on equity instruments at fair value through other comprehensive income and exchange differences[6](index=6&type=chunk) Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 676,707 | 652,831 | +3.7% | | Cost of Sales | (178,952) | (137,447) | +30.2% | | Gross Profit | 497,755 | 515,384 | -3.4% | | Operating Profit | 64,387 | 202,006 | -68.1% | | Profit Before Tax | 79,800 | 208,645 | -61.8% | | Profit for the Period | 41,765 | 185,808 | -77.5% | | Profit attributable to owners of the company for the period | 55,074 | 205,557 | -73.2% | | Basic Earnings Per Share | RMB 1.3 cents | RMB 4.6 cents | -71.7% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the group's total assets less current liabilities increased to RMB 4,340.4 million, and net assets rose to RMB 3,737.0 million, driven by significant increases in non-current and current financial assets and trade receivables, alongside higher current liabilities - Among non-current assets, interests in associates significantly increased from **RMB 72,692 thousand** to **RMB 210,118 thousand**, and financial assets at fair value through profit or loss rose from **RMB 252,149 thousand** to **RMB 262,018 thousand**[7](index=7&type=chunk) - Within current liabilities, trade and other payables increased from **RMB 758,212 thousand** to **RMB 841,265 thousand**, and contract liabilities significantly rose from **RMB 21,435 thousand** to **RMB 95,515 thousand**[7](index=7&type=chunk) Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 2,760,395 | 2,566,205 | +7.6% | | Total Current Assets | 2,573,290 | 2,334,173 | +10.2% | | Total Current Liabilities | 993,262 | 815,638 | +21.8% | | Net Current Assets | 1,580,028 | 1,518,535 | +4.1% | | Total Assets Less Current Liabilities | 4,340,423 | 4,084,740 | +6.3% | | Net Assets | 3,736,950 | 3,475,429 | +7.5% | | Equity attributable to owners of the company | 3,770,199 | 3,494,507 | +7.9% | [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes on the preparation basis, significant accounting policies, segment information, and specific financial line items within the condensed consolidated financial statements [1. General Information](index=5&type=section&id=1.%20General%20Information) LifeTech Scientific Corporation, incorporated in the Cayman Islands and listed on the HKEX, primarily develops, manufactures, and trades advanced interventional medical devices for cardiovascular and peripheral vascular diseases, with financial statements presented in RMB - The Group's principal activities involve the development, manufacture, and trading of advanced interventional medical devices for cardiovascular and peripheral vascular diseases and disorders[9](index=9&type=chunk) - The condensed consolidated financial statements are presented in RMB, the functional currency of the Company and its principal operating subsidiaries[10](index=10&type=chunk) [2. Basis of Preparation](index=5&type=section&id=2.%20Basis%20of%20Preparation) The Group's unaudited condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and applicable disclosure requirements of the HKEX Listing Rules - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' issued by the IASB and the applicable disclosure requirements of Appendix D2 to the Listing Rules[11](index=11&type=chunk) [3. Significant Accounting Policies](index=5&type=section&id=3.%20Significant%20Accounting%20Policies) The condensed consolidated financial statements are primarily prepared under the historical cost convention, consistent with the annual financial statements for the year ended December 31, 2024, with no significant impact from new IFRS interpretations or amendments applied this period - The condensed consolidated financial statements are prepared on the historical cost basis, except for certain financial instruments measured at fair value[12](index=12&type=chunk) - The application of new interpretations and amendments to IFRS during the interim period had no significant impact on the amounts presented and/or disclosures in the condensed consolidated financial statements[12](index=12&type=chunk) [4. Segment Information](index=6&type=section&id=4.%20Segment%20Information) The Group reports data across three business segments: structural heart disease, peripheral vascular disease, and pacing and electrophysiology, with peripheral vascular disease being the largest contributor to revenue and segment profit, and pacing and electrophysiology showing significant revenue growth - The Group's operating segments include structural heart disease business, peripheral vascular disease business, and pacing and electrophysiology business, all involving the trading, manufacturing, and research and development of related devices[14](index=14&type=chunk)[16](index=16&type=chunk) [(A) Segment Revenue and Results](index=6&type=section&id=%28A%29%20Segment%20Revenue%20and%20Results) For the six months ended June 30, 2025, peripheral vascular disease business contributed the largest revenue of RMB 391.7 million, structural heart disease revenue remained stable at RMB 271.5 million, and pacing and electrophysiology revenue significantly grew to RMB 13.5 million, with total segment profit at RMB 497.8 million - Revenue from the pacing and electrophysiology business significantly increased from **RMB 856 thousand** in 2024 to **RMB 13,475 thousand** in 2025, achieving a turnaround to profitability[15](index=15&type=chunk)[17](index=17&type=chunk) Revenue and Results by Operating and Reportable Segment (For the six months ended June 30) | Segment | 2025 (RMB thousand) | 2024 (RMB thousand) | 2025 Segment Profit (RMB thousand) | 2024 Segment Profit (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Structural Heart Disease Business | 271,539 | 271,250 | 237,686 | 243,166 | | Peripheral Vascular Disease Business | 391,693 | 380,725 | 258,214 | 285,320 | | Pacing and Electrophysiology Business | 13,475 | 856 | 1,855 | (13,102) | | **Total** | **676,707** | **652,831** | **497,755** | **515,384** | [(B) Segment Assets and Liabilities](index=8&type=section&id=%28B%29%20Segment%20Assets%20and%20Liabilities) As of June 30, 2025, the Group's total segment assets were RMB 1,929.9 million, with peripheral vascular disease business holding the largest asset base, and total segment liabilities were RMB 449.5 million, also higher for peripheral vascular disease, while unallocated assets and liabilities include interests in associates, financial assets, and cash - Total consolidated assets amounted to **RMB 5,333,685 thousand**, and total consolidated liabilities were **RMB 1,596,735 thousand**[18](index=18&type=chunk)[19](index=19&type=chunk) Assets and Liabilities by Operating and Reportable Segment (As of June 30) | Segment | 2025 Assets (RMB thousand) | 2024 Assets (RMB thousand) | 2025 Liabilities (RMB thousand) | 2024 Liabilities (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Structural Heart Disease Business | 768,334 | 688,026 | 172,333 | 127,440 | | Peripheral Vascular Disease Business | 1,108,398 | 979,544 | 248,607 | 181,439 | | Pacing and Electrophysiology Business | 53,239 | 70,595 | 28,525 | 22,733 | | **Total Segment** | **1,929,971** | **1,738,165** | **449,465** | **331,612** | [5. Other Income, Expenses, Gains and Losses](index=10&type=section&id=5.%20Other%20Income%2C%20Expenses%2C%20Gains%20and%20Losses) For the six months ended June 30, 2025, total other income, expenses, gains, and losses slightly increased to RMB 50.4 million, with stable government grants and investment property rental income, but a shift in fair value changes for mixed funds from loss to gain, and for equity funds from gain to loss, alongside a significant increase in net exchange gains - Fair value change of mixed funds shifted from a loss of **RMB 18,243 thousand** in 2024 to a gain of **RMB 13,996 thousand** in 2025[20](index=20&type=chunk) - Fair value change of equity funds shifted from a gain of **RMB 50,163 thousand** in 2024 to a loss of **RMB 3,260 thousand** in 2025[20](index=20&type=chunk) Other Income, Expenses, Gains and Losses (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Government Grants | 7,989 | 7,941 | | Rental Income from Investment Properties | 17,712 | 17,097 | | Fair Value Change of Mixed Funds (Gain) Loss | 13,996 | (18,243) | | Fair Value Change of Equity Funds (Loss) Gain | (3,260) | 50,163 | | Net Other Exchange Gains (Losses) | 24,033 | (2,539) | | **Total** | **50,365** | **49,125** | [6. Profit Before Tax](index=11&type=section&id=6.%20Profit%20Before%20Tax) For the six months ended June 30, 2025, total staff costs deducted from profit before tax significantly increased to RMB 359.6 million, primarily due to share-based payment expenses rising from RMB 61.3 million to RMB 193.5 million, with inventory costs and depreciation also increasing - Share-based payment expenses increased by approximately **215.5%** year-on-year, being the primary reason for the significant increase in total staff costs[21](index=21&type=chunk) Items Deducted (Credited) from Profit Before Tax (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Staff Costs | 359,576 | 228,224 | | - Share-based Payment Expenses | 193,500 | 61,325 | | Cost of Inventories Recognized as Expense | 178,952 | 137,447 | | Total Depreciation and Amortization | 42,750 | 41,776 | [7. Income Tax Expense](index=12&type=section&id=7.%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense increased to RMB 38.0 million, primarily due to higher taxable income, with LifeTech Shenzhen, a high-tech enterprise, benefiting from a preferential corporate income tax rate of 15% - LifeTech Shenzhen, as a high-tech enterprise, enjoyed a preferential corporate income tax rate of **15%** for the periods ended June 30, 2025, and 2024[23](index=23&type=chunk) Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | PRC Corporate Income Tax | 30,415 | 34,210 | | Hong Kong Profits Tax | 8,530 | 8,059 | | Deferred Tax Credit | (910) | (19,432) | | **Total** | **38,035** | **22,837** | [8. Dividends](index=12&type=section&id=8.%20Dividends) For the interim periods ended June 30, 2025, and 2024, the Company neither paid, declared, nor proposed any dividends - No dividends were paid, declared, or proposed for the interim periods ended June 30, 2025, and 2024[25](index=25&type=chunk) [9. Earnings Per Share](index=13&type=section&id=9.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, both basic and diluted earnings per share attributable to owners of the company were RMB 1.3 cents, a significant decrease from RMB 4.6 cents in the prior year, primarily due to reduced profit - The calculation of diluted earnings per share does not assume the conversion of share options with an exercise price higher than the average market price of the shares[26](index=26&type=chunk) Earnings Per Share Calculation (For the six months ended June 30) | Item | 2025 (RMB thousand / thousand shares) | 2024 (RMB thousand / thousand shares) | | :--- | :--- | :--- | | Profit for the purpose of calculating basic and diluted earnings per share | 55,074 | 205,557 | | Weighted average number of ordinary shares for the purpose of calculating basic earnings per share | 4,344,028 | 4,420,884 | | Weighted average number of ordinary shares for the purpose of calculating diluted earnings per share | 4,350,648 | 4,452,162 | | Basic Earnings Per Share | RMB 1.3 cents | RMB 4.6 cents | | Diluted Earnings Per Share | RMB 1.3 cents | RMB 4.6 cents | [10. Financial Assets at Fair Value Through Profit or Loss](index=14&type=section&id=10.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, total financial assets at fair value through profit or loss increased to RMB 703.0 million, comprising non-current equity and mixed funds and current short-term bank structured deposits, all considered long-term strategic investments primarily in the healthcare industry - The Group, as a limited partner, invests in private equity funds primarily focused on the healthcare industry, aiming for capital appreciation[28](index=28&type=chunk) - The Directors consider the holding of these funds as long-term strategic investments, thus classified as non-current assets[29](index=29&type=chunk) Financial Assets at Fair Value Through Profit or Loss (As of June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Unlisted Equity Funds | 205,302 | 209,430 | | Mixed Funds | 56,636 | 42,639 | | Short-term Bank Structured Deposits | 441,000 | 311,000 | | **Total** | **703,018** | **563,149** | [11. Equity Instruments at Fair Value Through Other Comprehensive Income](index=15&type=section&id=11.%20Equity%20Instruments%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) As of June 30, 2025, equity instruments at fair value through other comprehensive income, comprising Hong Kong-listed equity securities, increased in fair value to RMB 43.4 million, representing a long-term strategic investment as a cornerstone investor in Genesis MedTech - The Group subscribed for shares in Genesis MedTech as a cornerstone investor on September 21, 2022, for a total consideration of **USD 20.0 million**[30](index=30&type=chunk) - The Directors consider this investment as a long-term strategic investment, thus classified as a non-current asset[31](index=31&type=chunk) Equity Instruments at Fair Value Through Other Comprehensive Income (As of June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Hong Kong Listed Equity Securities | 43,410 | 17,099 | [12. Trade Receivables](index=15&type=section&id=12.%20Trade%20Receivables) As of June 30, 2025, total trade receivables increased to RMB 205.2 million, primarily driven by amounts aged 1 to 90 days, with the Group generally granting trade customers credit terms of 30 to 180 days - Total trade receivables increased by approximately **50.1%** year-on-year, primarily concentrated in the 90-day ageing category[32](index=32&type=chunk) Ageing Analysis of Trade Receivables (As of June 30) | Ageing | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | 1 to 90 days | 158,755 | 124,812 | | 91 to 180 days | 36,504 | 6,616 | | 181 to 365 days | 7,328 | 2,760 | | Over 365 days | 2,625 | 2,502 | | **Total** | **205,212** | **136,690** | [13. Other Receivables and Prepayments](index=16&type=section&id=13.%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, total other receivables and prepayments amounted to RMB 479.5 million, largely consistent with December 31, 2024, with advances to employees (others) being the largest component, primarily related to the 2019 share award scheme - Advances to employees (others) primarily refer to deferred payments for shares acquired by employees under the 2019 Share Award Scheme, secured by the relevant shares[33](index=33&type=chunk) Other Receivables and Prepayments (As of June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Other Debts | 41,110 | 18,823 | | Deductible VAT | 47,720 | 76,596 | | Prepayments | 72,735 | 67,928 | | Advances to Employees - Others | 284,495 | 287,519 | | **Total** | **479,543** | **478,222** | [14. Trade Payables](index=16&type=section&id=14.%20Trade%20Payables) As of June 30, 2025, total trade payables increased to RMB 83.0 million, primarily due to growth in amounts aged 0 to 30 days and over 120 days, with suppliers granting credit terms ranging from 30 to 120 days - Total trade payables increased by approximately **39.4%** year-on-year[34](index=34&type=chunk) Ageing Analysis of Trade Payables (As of June 30) | Ageing | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 30 days | 17,729 | 7,520 | | 31 to 60 days | 8,863 | 9,020 | | 61 to 120 days | 13,498 | 9,007 | | Over 120 days | 42,908 | 33,996 | | **Total** | **82,998** | **59,543** | [15. Financial Liabilities at Fair Value Through Profit or Loss](index=17&type=section&id=15.%20Financial%20Liabilities%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, financial liabilities at fair value through profit or loss remained at RMB 558.3 million, consistent with December 31, 2024, primarily due to shareholder agreements for Yuanxin Technology's Series A and B rounds, which include share redemption rights if specific conditions are not met - This financial liability arises from Yuanxin Technology's Series A and B shareholder agreements, which include share redemption rights, leading to the classification of related shares as financial liabilities[36](index=36&type=chunk) - Following the completion of the Series B agreement, the Group's equity interest in Yuanxin Technology decreased from **57.44%** to **49.64%**[36](index=36&type=chunk) Financial Liabilities at Fair Value Through Profit or Loss (As of June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Capital Contributions from Other Investors | 558,326 | 558,326 | [16. Share Capital](index=17&type=section&id=16.%20Share%20Capital) As of June 30, 2025, the Company's authorized share capital was 40,000,000,000 shares with a par value of USD 0.00000125 each, with issued and fully paid share capital slightly increasing due to option exercises, but the total amount remained RMB 37 thousand - The authorized share capital consists of **40,000,000,000 shares** with a par value of **USD 0.00000125** per share[37](index=37&type=chunk) Changes in Share Capital (As of June 30) | Item | Number of Shares | Amount (USD) | Amount (RMB thousand) | | :--- | :--- | :--- | :--- | | As at January 1, 2024 | 4,630,232,400 | 5,789 | 37 | | Exercise of share options | 380,000 | — | — | | As at December 31, 2024 | 4,630,612,400 | 5,789 | 37 | | Exercise of share options | 1,100,000 | 1 | — | | As at June 30, 2025 | 4,631,712,400 | 5,790 | 37 | [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the Group's business operations, financial performance, and strategic initiatives for the reporting period, including sales, R&D, and liquidity [Business Overview](index=19&type=section&id=Business%20Overview) The Group is a developer, manufacturer, and marketer of minimally invasive interventional medical devices for cardiovascular and peripheral vascular diseases, with three main product lines and a stable global sales network - The Group currently has three main product lines: structural heart disease business, peripheral vascular disease business, and pacing and electrophysiology business[40](index=40&type=chunk) - Products include congenital heart disease occluders, left atrial appendage occluders, vena cava filters, covered stents, implantable cardiac pacemakers, and pacemaker leads[40](index=40&type=chunk) - The Group has established a stable global sales network covering numerous countries in Asia, Europe, North America, South America, and Africa[40](index=40&type=chunk) [First Half Performance](index=19&type=section&id=First%20Half%20Performance) For the six months ended June 30, 2025, group revenue grew by 3.7% to RMB 676.7 million, with mainland China remaining the largest market at 74.1% of total revenue, and overseas sales increasing by 8.0% due to active expansion and marketing, while net profit attributable to owners of the company increased by 2.1% excluding non-recurring items but significantly decreased by 73.2% when including them - Asia (excluding mainland China) and Europe were the two largest overseas markets, accounting for approximately **11.4%** and **11.0%** of total revenue, respectively[41](index=41&type=chunk) - Profit attributable to owners of the company (excluding non-recurring items) increased by **2.1%** from **RMB 233.6 million** to **RMB 238.5 million**; however, including non-recurring items, net profit decreased by **73.2%** from **RMB 205.6 million** to **RMB 55.1 million**[42](index=42&type=chunk) First Half Revenue and Market Distribution | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | RMB 676.7 million | RMB 652.8 million | +3.7% | | Mainland China Revenue Share | Approx. 74.1% | Approx. 75.1% | -1.0% | | Overseas Sales Growth | +8.0% | - | - | [Sales and Marketing](index=20&type=section&id=Sales%20and%20Marketing) The Group leverages its experienced sales and marketing team to enhance product brand awareness, influence, and sales through participation in domestic and international medical conferences, academic events, seminars, live surgeries, and professional training, fostering academic exchange in cardiovascular minimally invasive interventions - The Group enhances product brand awareness and influence by organizing or participating in domestic and international medical conferences, academic activities, seminars, live surgeries, and training for medical professionals[43](index=43&type=chunk) - LifeTech Scientific's academic exchange platform connects global cardiovascular experts for academic exchange, promoting the development of medical technology[43](index=43&type=chunk) [Research and Development ("R&D")](index=20&type=section&id=Research%20and%20Development%20%28%22R%26D%22%29) The Company continuously strengthens its innovation capabilities and accelerates product R&D to maintain industry leadership, with several products receiving NMPA or CE MDR certification in the first half, and others undergoing registration approval, CE certification, or clinical enrollment/follow-up - The Aortic Stent Graft System, Aortic Arch Stent Graft System, Peripheral Balloon Dilatation Catheter, YoscopTM Multi-Loop Retrieval System, and SteerEaseTM-m Cardiac Occluder Delivery System have obtained NMPA certification[45](index=45&type=chunk) - The IrisFitTM PFO Occluder and SteerEaseTM Delivery Sheath have obtained CE MDR certification[45](index=45&type=chunk) - Products such as the Thoracoabdominal Aortic Stent Graft System, Iliac Artery Stent Graft System, IBS TitanTM Bioresorbable Drug-Eluting Peripheral Stent System, and IBSTM Bioresorbable Drug-Eluting Coronary Stent System are currently undergoing registration approval or clinical enrollment in China or Europe[45](index=45&type=chunk)[50](index=50&type=chunk) [Intellectual Property](index=21&type=section&id=Intellectual%20Property) Intellectual property is a crucial intangible asset and core competitive driver for the Group, with 73 patent applications submitted and 41 patents approved in the first half of 2025, bringing the total to 1,123 approved and valid patents - For the six months ended June 30, 2025, the Group submitted **73** patent applications and successfully obtained approval for **41** patents[46](index=46&type=chunk) - As of June 30, 2025, the Group had cumulatively submitted **2,464** valid patent applications, with **1,123** approved and valid patents[46](index=46&type=chunk) [Financial Review](index=21&type=section&id=Financial%20Review) This section provides a detailed review of the Group's financial performance during the reporting period, covering revenue, gross profit, various expenses, changes in financial assets and liabilities, and net profit, indicating overall revenue growth but declining gross margins and significantly reduced operating and net profit due to increased share-based payment expenses [Revenue](index=21&type=section&id=Revenue) For the six months ended June 30, 2025, the Group's revenue was approximately RMB 676.7 million, a 3.7% year-on-year increase, primarily driven by increased sales of covered stents and left atrial appendage occluders - The increase in revenue was primarily due to higher revenue from the sales of covered stents and left atrial appendage occluders[48](index=48&type=chunk) Revenue Overview (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 676.7 | 652.8 | +3.7% | [Revenue from Structural Heart Disease Business](index=21&type=section&id=Revenue%20from%20Structural%20Heart%20Disease%20Business) Revenue from the structural heart disease business was approximately RMB 271.5 million, a marginal 0.1% year-on-year increase, with left atrial appendage occluder sales revenue growing by 14.7% while congenital heart disease occluder sales revenue decreased by 7.2% Structural Heart Disease Business Revenue (For the six months ended June 30) | Item | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 271.5 | 271.2 | +0.1% | | Left Atrial Appendage Occluder Sales Revenue Growth | +14.7% | - | - | | Congenital Heart Disease Occluder Sales Revenue Decrease | -7.2% | - | - | [Revenue from Peripheral Vascular Disease Business](index=22&type=section&id=Revenue%20from%20Peripheral%20Vascular%20Disease%20Business) Revenue from the peripheral vascular disease business was approximately RMB 391.7 million, a 2.9% year-on-year increase, with covered stent sales revenue growing by 9.6% while vena cava filter sales revenue decreased by 16.8% Peripheral Vascular Disease Business Revenue (For the six months ended June 30) | Item | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 391.7 | 380.7 | +2.9% | | Covered Stent Sales Revenue Growth | +9.6% | - | - | | Vena Cava Filter Sales Revenue Decrease | -16.8% | - | - | [Revenue from Pacing and Electrophysiology Business](index=22&type=section&id=Revenue%20from%20Pacing%20and%20Electrophysiology%20Business) Revenue from the pacing and electrophysiology business was approximately RMB 13.5 million, representing a significant year-on-year increase of 1,400.0%, indicating strong growth momentum in this segment Pacing and Electrophysiology Business Revenue (For the six months ended June 30) | Item | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 13.5 | 0.9 | +1,400.0% | [Gross Profit and Gross Margin](index=22&type=section&id=Gross%20Profit%20and%20Gross%20Margin) The Group's gross profit decreased by 3.4% year-on-year to RMB 497.8 million, with the gross margin declining by 5.3 percentage points to 73.6%, primarily due to lower product selling prices from centralized procurement policies and changes in sales mix - The decrease in gross margin was primarily due to lower selling prices of certain products under centralized procurement policies and changes in sales mix[53](index=53&type=chunk) Gross Profit and Gross Margin (For the six months ended June 30) | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Profit | RMB 497.8 million | RMB 515.4 million | -3.4% | | Gross Margin | Approx. 73.6% | Approx. 78.9% | -5.3 percentage points | [Other Income, Expenses, Gains and Losses](index=22&type=section&id=Other%20Income%2C%20Expenses%2C%20Gains%20and%20Losses) Other income, expenses, gains, and losses slightly increased to RMB 50.4 million, with an increase in net exchange gains largely offset by a decrease in fair value gains from financial assets at fair value through profit or loss - The change was primarily due to an increase in net exchange gains being offset by a decrease in gains from fair value changes of financial assets at fair value through profit or loss[54](index=54&type=chunk) Other Income, Expenses, Gains and Losses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total | 50.4 | 49.1 | +2.6% | [Financial Assets at Fair Value Through Profit or Loss](index=22&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) The Group made strategic investments in several private equity and mixed funds, with varying fair values; as of June 30, 2025, investments in 2018 equity fund were RMB 9.2 million, 2022 equity fund RMB 196.1 million, 2021 mixed fund RMB 13.5 million, and 2023 mixed fund RMB 43.2 million, all classified as non-current assets - For the six months ended June 30, 2025, total gains from fair value changes of financial assets at fair value through profit or loss amounted to approximately **RMB 10.7 million** (2024: approximately **RMB 31.9 million** gain)[57](index=57&type=chunk) Fair Value of Major Financial Assets at Fair Value Through Profit or Loss (As of June 30) | Investment Item | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | 2018 Equity Fund | 9.2 | 8.9 | | 2021 Mixed Fund | 13.5 | 12.5 | | 2022 Equity Fund | 196.1 | 200.5 | | 2023 Mixed Fund | 43.2 | 30.2 | [Selling and Distribution Expenses](index=23&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses significantly increased by 67.3% year-on-year to RMB 250.9 million, primarily due to higher staff costs, with share-based payment expenses rising from RMB 24.1 million to RMB 128.4 million Selling and Distribution Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total | 250.9 | 150.0 | +67.3% | | Share-based Payment Expenses | 128.4 | 24.1 | +432.8% | [Administrative Expenses](index=23&type=section&id=Administrative%20Expenses) Administrative expenses increased by 63.1% year-on-year to RMB 118.4 million, primarily due to higher staff costs, with share-based payment expenses rising from RMB 16.0 million to RMB 54.6 million Administrative Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total | 118.4 | 72.6 | +63.1% | | Share-based Payment Expenses | 54.6 | 16.0 | +241.3% | [Research and Development Expenses](index=24&type=section&id=Research%20and%20Development%20Expenses) R&D expenses decreased by 18.2% year-on-year to RMB 114.5 million, and total R&D costs, after considering capitalized development expenditure, decreased by 23.6% to RMB 156.0 million, primarily due to reduced share-based payment expenses related to Yuanxin Technology Research and Development Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | R&D Expenses | 114.5 | 139.9 | -18.2% | | Capitalized Development Expenditure | 41.5 | 64.3 | -35.4% | | Total R&D Costs (after capitalization) | 156.0 | 204.2 | -23.6% | | Yuanxin Technology-related Share-based Payment Expenses | 5.9 | 36.3 | -83.7% | [Operating Profit](index=24&type=section&id=Operating%20Profit) Operating profit significantly decreased by 68.1% year-on-year to RMB 64.4 million, primarily due to increased staff costs from higher share-based payment expenses and reduced fair value gains from financial assets at fair value through profit or loss - The decrease in operating profit was primarily due to increased staff costs from higher share-based payment expenses and reduced gains from fair value changes of financial assets at fair value through profit or loss[61](index=61&type=chunk) Operating Profit (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Profit | 64.4 | 202.0 | -68.1% | [Share of Results of Associates](index=24&type=section&id=Share%20of%20Results%20of%20Associates) The Group's share of results of associates turned from a loss of RMB 1.4 million in 2024 to a gain of RMB 5.3 million in 2025 Share of Results of Associates (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Share of Results of Associates | 5.3 (Gain) | (1.4) (Loss) | [Finance Income and Finance Costs](index=24&type=section&id=Finance%20Income%20and%20Finance%20Costs) Finance income increased by 15.7% year-on-year to RMB 10.3 million, while finance costs significantly decreased by 88.9% to RMB 0.1 million Finance Income and Finance Costs (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Income | 10.3 | 8.9 | +15.7% | | Finance Costs | 0.1 | 0.9 | -88.9% | [Financial Liabilities at Fair Value Through Profit or Loss](index=24&type=section&id=Financial%20Liabilities%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, financial liabilities at fair value through profit or loss remained at RMB 558.3 million, consistent with December 31, 2024, primarily related to Yuanxin Technology's shareholder agreements, which classify them as financial liabilities due to redemption rights - This financial liability arises from Yuanxin Technology's Series A and B shareholder agreements, which include share redemption rights[64](index=64&type=chunk) - For the six months ended June 30, 2025, the fair value change of financial liabilities was not significant[65](index=65&type=chunk) Financial Liabilities at Fair Value Through Profit or Loss (As of June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Fair Value | 558.3 | 558.3 | [Income Tax](index=25&type=section&id=Income%20Tax) Income tax expense increased year-on-year to RMB 38.0 million, primarily attributable to higher taxable income - The increase in income tax was primarily attributable to higher taxable income[68](index=68&type=chunk) Income Tax Expense (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax | 38.0 | 22.8 | +66.7% | [Net Profit](index=25&type=section&id=Net%20Profit) Excluding non-recurring items, net profit attributable to owners of the company increased by 2.1% year-on-year to RMB 238.5 million; however, including non-recurring items, net profit significantly decreased by 73.2% to RMB 55.1 million, primarily due to reduced fair value gains from financial assets and substantially increased share-based payment expenses - Non-recurring items included other gains from financial assets at fair value through profit or loss of approximately **RMB 9.9 million** (2024: **RMB 32.9 million**) and share-based payment expenses of approximately **RMB 193.5 million** (2024: **RMB 61.3 million**)[69](index=69&type=chunk) Net Profit (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Net Profit (excluding non-recurring items) | 238.5 | 233.6 | +2.1% | | Net Profit (including non-recurring items) | 55.1 | 205.6 | -73.2% | [Equity Instruments at Fair Value Through Other Comprehensive Income](index=25&type=section&id=Equity%20Instruments%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) As of June 30, 2025, the Group's investment in Genesis MedTech had a fair value of approximately RMB 43.4 million, representing about 0.8% of total assets, classified as an equity instrument at fair value through other comprehensive income and considered a long-term strategic investment, generating a fair value gain of approximately RMB 27.0 million this period - For the six months ended June 30, 2025, gains from fair value changes of equity instruments at fair value through other comprehensive income amounted to approximately **RMB 27.0 million** (2024: approximately **RMB 93.2 million** loss)[70](index=70&type=chunk) - The Group holds approximately **1.8%** of Genesis MedTech's issued share capital, and this investment is considered a long-term strategic investment[71](index=71&type=chunk) Equity Instruments at Fair Value Through Other Comprehensive Income (As of June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Fair Value | 43.4 | 17.1 | | Percentage of Total Assets | 0.8% | 0.3% | [Liquidity and Financial Resources](index=26&type=section&id=Liquidity%20and%20Financial%20Resources) The Group primarily funds its operations with internal working capital; as of June 30, 2025, total current assets were RMB 2,573.3 million, total current liabilities were RMB 993.3 million, resulting in a current ratio of approximately 2.59, with trade receivables turnover days at 45 and trade payables at 72, and cash and cash equivalents increasing by 17.5% to RMB 782.6 million - The Group had no bank borrowings at the end of the reporting period or as of December 31, 2024, resulting in a zero gearing ratio[74](index=74&type=chunk)[76](index=76&type=chunk) Liquidity and Financial Resources Overview (As of June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Current Assets | 2,573.3 | 2,334.2 | +10.2% | | Total Current Liabilities | 993.3 | 815.6 | +21.8% | | Current Ratio | 2.59 | 2.86 | -9.5% | | Trade Receivables Turnover Days | 45 days | 33 days | +36.4% | | Trade Payables Turnover Days | 72 days | 103 days | -30.1% | | Cash and Cash Equivalents | 782.6 | 665.8 | +17.5% | [Properties Held](index=27&type=section&id=Properties%20Held) Dongguan LifeTech, a wholly-owned subsidiary, acquired land use rights for a plot in Dongguan Songshan Lake in 2019 and commenced construction of an industrial park in 2020; as of June 30, 2025, the park has obtained property ownership certificates, with portions used for self-operation, external leasing, and future allocation - Dongguan LifeTech acquired land use rights for a plot of **43,604 square meters** in 2019, with a total consideration of approximately **RMB 43.6 million**[79](index=79&type=chunk) - The industrial park's total construction contract price reached up to **RMB 620.0 million**, and property ownership certificates for all buildings and the basement were obtained in May 2023[79](index=79&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=27&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) The Company, through LifeTech Shenzhen, plans to invest RMB 150.0 million in Jianhu Medical Technology (Suzhou) Co., Ltd. to strengthen its position in the high-growth electrophysiology market; as of the reporting period, the first phase of investment is complete, with LifeTech Shenzhen acquiring a 22.22% equity interest - The Company, through LifeTech Shenzhen, intends to invest a total of **RMB 150.0 million** in Jianhu Medical Technology (Suzhou) Co., Ltd[80](index=80&type=chunk)[81](index=81&type=chunk) - This investment will be carried out in phases, and upon completion of all phases, LifeTech Shenzhen will hold a **30%** equity interest in Jianhu Medical[81](index=81&type=chunk) - As of the date of this interim results announcement, the first phase of the investment has been completed, with LifeTech Shenzhen acquiring a **22.22%** equity interest in Jianhu Medical[81](index=81&type=chunk) [Significant Investments and Future Plans for Significant Investments or Capital Assets](index=28&type=section&id=Significant%20Investments%20and%20Future%20Plans%20for%20Significant%20Investments%20or%20Capital%20Assets) As of June 30, 2025, the Company held no significant investments exceeding 5% of total assets and had no other board-authorized plans for major investments or capital asset additions; its investment strategy focuses on seeking strategic collaborations with growth potential in the medical industry to enrich product lines and expand business scale - The Company did not hold any significant investments exceeding **5%** of total assets, nor did it have other plans for significant investments or additions of capital assets[82](index=82&type=chunk) - The investment strategy is to identify investment opportunities with growth potential within the medical industry and seek strategic collaborations to enrich product lines and expand business scale[82](index=82&type=chunk) [Contingent Liabilities](index=28&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities as of June 30, 2025[83](index=83&type=chunk) [Financial Instruments](index=28&type=section&id=Financial%20Instruments) As of June 30, 2025, the Group had no outstanding hedging contracts or financial derivative instruments - As of June 30, 2025, the Group had no outstanding hedging contracts or financial derivative instruments[84](index=84&type=chunk) [Capital Expenditure](index=28&type=section&id=Capital%20Expenditure) For the six months ended June 30, 2025, the Group's capital expenditure was approximately RMB 56.7 million, a significant decrease from RMB 213.2 million in the prior year - Capital expenditure was primarily for property, plant and equipment, construction in progress, intangible assets, right-of-use assets, and deposits for property, plant and equipment[85](index=85&type=chunk) Capital Expenditure (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Capital Expenditure | 56.7 | 213.2 | -73.4% | [Foreign Exchange Risk](index=29&type=section&id=Foreign%20Exchange%20Risk) The Group primarily operates in Asia and Europe, with its operating results and financial position influenced by exchange rate fluctuations; while no hedging strategies were employed during the reporting period, management closely monitors foreign exchange risk, anticipating no significant adverse impact in the short term and considering hedging when necessary - The Group primarily conducts business in Asia and Europe, with revenue from Asia (excluding mainland China) and Europe accounting for approximately **11.4%** and **11.0%** of total revenue, respectively[86](index=86&type=chunk) - Management closely monitors foreign exchange risk to maintain net exposure at an acceptable level and does not anticipate exchange rate fluctuations to have a significant adverse impact on its operations in the foreseeable future[86](index=86&type=chunk) [Pledged Group Assets](index=29&type=section&id=Pledged%20Group%20Assets) As of June 30, 2025, the Group had no pledged assets - As of June 30, 2025, the Group had no pledged assets[87](index=87&type=chunk) [Capital Commitments](index=29&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's contracted capital expenditure not yet provided for in the condensed consolidated financial statements was approximately RMB 46.3 million, a decrease from RMB 55.1 million as of December 31, 2024 Capital Commitments (As of June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Contracted Capital Expenditure Not Provided For | 46.3 | 55.1 | [Segment Information (Business Outlook)](index=29&type=section&id=Segment%20Information%20%28Business%20Outlook%29) The Group's revenue primarily stems from structural heart disease, peripheral vascular disease, and pacing and electrophysiology businesses, with future market demand for its products expected to rise due to aging populations, urbanization, and increased health awareness, which the company plans to capitalize on through differentiated marketing, product upgrades, and technological leadership - Aging populations, urbanization, and increasing health awareness collectively drive stable growth in the healthcare industry, with market demand for the Company's products expected to show an upward trend in the future[89](index=89&type=chunk) [Structural Heart Disease Business](index=29&type=section&id=Structural%20Heart%20Disease%20Business) The Company deploys four generations of congenital heart disease occluders to meet diverse patient needs and continuously upgrades its left atrial appendage occluders, anticipating sustained growth in the global market share for left atrial appendage occluders - The Company deploys four generations of congenital heart disease occluders and continuously upgrades its left atrial appendage occluders[90](index=90&type=chunk) - Based on the large global population of atrial fibrillation patients, the global market share for left atrial appendage occluders is expected to continue growing in the future[90](index=90&type=chunk) [Peripheral Vascular Disease Business](index=29&type=section&id=Peripheral%20Vascular%20Disease%20Business) The Company offers technologically advanced systemic comprehensive interventional medical device solutions for peripheral vascular diseases, with leading domestic market shares for vena cava filters and covered stents, and anticipates market demand growth driven by aging populations, increased disease detection rates, and expanded product applications - The Company provides patients with technologically advanced systemic comprehensive interventional medical device solutions for peripheral vascular diseases, with vena cava filters and covered stents holding leading market shares domestically[91](index=91&type=chunk) - Aging populations, increased disease detection rates, and expanded product applications will help drive market demand growth for these products[91](index=91&type=chunk) [Pacing and Electrophysiology Business](index=30&type=section&id=Pacing%20and%20Electrophysiology%20Business) The Company is China's first manufacturer to possess a complete product portfolio of domestically produced implantable cardiac pacemakers with international-level technology and functionality - The Company is China's first manufacturer to possess a complete product portfolio of domestically produced implantable cardiac pacemakers with international-level technology and functionality[92](index=92&type=chunk) [Employees and Remuneration Policy](index=30&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 1,273 full-time employees, with total staff costs of approximately RMB 359.6 million in the first half, primarily impacted by share-based payment expenses; the company offers various benefits, fair performance appraisal systems, and share award schemes, committed to providing a safe and comfortable work environment and development opportunities - The Group's remuneration policy is determined with reference to individual employees' performance, qualifications, and work experience, as well as the Group's performance and market conditions[94](index=94&type=chunk) - The Company has adopted share option schemes and share award schemes to provide incentives to employees and other eligible participants[94](index=94&type=chunk) Employees and Remuneration Overview (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Number of Full-time Employees | 1,273 | 1,392 | | Total Staff Costs | RMB 359.6 million | RMB 228.2 million | | Retirement Benefit Scheme Contributions | RMB 18.7 million | RMB 18.0 million | [2020 Placing](index=31&type=section&id=2020%20Placing) The Company completed a placing of 287,320,000 new ordinary shares in December 2020, raising approximately HKD 930.0 million in net proceeds; as of June 30, 2025, approximately HKD 391.2 million remains unutilized, earmarked for potential business development, including new overseas clinical projects, with gradual deployment expected from the second half of 2025 to 2027 - The Company completed a placing of **287,320,000** new ordinary shares in December 2020 at a placing price of **HKD 3.2368** per share, raising net proceeds of approximately **HKD 930.0 million**[96](index=96&type=chunk)[97](index=97&type=chunk) - The Directors believe that the 2020 Placing strengthened the Company's financial position and provided working capital[100](index=100&type=chunk) Use of Proceeds from 2020 Placing (As of June 30) | Intended Use | Approximate Allocated Net Proceeds (HKD million) | Approximate Unutilized Net Proceeds as of June 30, 2025 (HKD million) | Expected Time of Utilization | | :--- | :--- | :--- | :--- | | Repayment of Bank Borrowings | 406.0 | — | Fully utilized | | Funding for Potential Business Development | 465.0 | 391.2 | H2 2025 to 2027 | | General Working Capital Purposes | 59.0 | — | Fully utilized | | **Total** | **930.0** | **391.2** | - | [Events After Reporting Period](index=32&type=section&id=Events%20After%20Reporting%20Period) No significant events affecting the Group occurred after June 30, 2025 - No significant events affecting the Group occurred after June 30, 2025[102](index=102&type=chunk) [Future Outlook](index=33&type=section&id=Future%20Outlook) [Future Outlook](index=33&type=section&id=Future%20Outlook) The global medical device industry continues to present significant growth opportunities driven by demographic shifts, technological advancements, and increasing healthcare demands; the Company, with strong R&D, diversified products, and international presence, is strategically investing in Jianhu Medical to strengthen its electrophysiology market position and commercialize innovative products through overseas networks, focusing on international expansion, technological innovation, product upgrades, and prudent capital allocation for sustainable growth and shareholder value maximization - The global medical device industry continues to present significant growth opportunities driven by demographic shifts, technological advancements, and increasing healthcare demands[103](index=103&type=chunk) - The strategic investment in Jianhu Medical is a key milestone to consolidate its position in the high-growth electrophysiology market, expected to generate significant synergies, particularly through leveraging overseas distribution networks for the commercialization of innovative products[103](index=103&type=chunk) - The future focus will remain on international business expansion, maintaining overall operational efficiency, continuous investment in new technology development and product upgrades, and a prudent capital allocation strategy[103](index=103&type=chunk) [Other Information](index=34&type=section&id=Other%20Information) This section covers corporate governance, compliance, and administrative matters, including dividend policy, securities transactions, and the review of interim results [Interim Dividend](index=34&type=section&id=Interim%20Dividend) The Board does not recommend paying any interim dividend for the six months ended June 30, 2025 - The Directors do not recommend paying any interim dividend for the six months ended June 30, 2025 (2024: nil)[105](index=105&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=34&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[106](index=106&type=chunk) [Compliance with Corporate Governance Code](index=34&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company is committed to high standards of corporate governance and confirms compliance with the Corporate Governance Code provisions in Appendix C1 of the Listing Rules during the reporting period, noting that the combined roles of Chairman and Chief Executive Officer, while deviating from Code Provision C.2.1, are deemed by the Board to provide strong and stable leadership - The Company confirms compliance with the Code Provisions under the Corporate Governance Code for the six months ended June 30, 2025, except for the deviation from Code Provision C.2.1 where the roles of Chairman and Chief Executive Officer are combined[107](index=107&type=chunk) - The Board believes that Mr. Xie Yuehui serving concurrently as Chairman and Chief Executive Officer provides strong and stable leadership for the Company, ensuring effective implementation of business decisions and strategies[107](index=107&type=chunk) [Standard Code for Securities Transactions](index=34&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The Company has adopted the Standard Code for Securities Transactions as set out in Appendix C3 of the Listing Rules as its code of conduct and confirms that all Directors, senior management, executives, and employees with potential access to inside information complied with this code during the reporting period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, as its own code of conduct[109](index=109&type=chunk) - For the six months ended June 30, 2025, all members of the Board and employees with potential access to inside information complied with the requirements of the Standard Code[109](index=109&type=chunk) [Audit Committee and Review of Interim Results](index=35&type=section&id=Audit%20Committee%20and%20Review%20of%20Interim%20Results) The Audit Committee, comprising three independent non-executive directors, reviewed and discussed the Group's unaudited interim results for the six months ended June 30, 2025, confirming compliance with relevant accounting standards, Listing Rules, and applicable legal requirements, with adequate disclosures made - The Audit Committee comprises three independent non-executive directors: Mr. Leung Hin Chee (Chairman), Mr. Zhou Luming, and Mr. Wang Wansong[110](index=110&type=chunk) - The Audit Committee has reviewed and discussed the Group's unaudited interim results for the six months ended June 30, 2025, deeming them compliant with relevant accounting standards, Listing Rules, and applicable legal requirements, with adequate disclosures made[110](index=110&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=35&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) The interim results announcement has been published on the websites of The Stock Exchange of Hong Kong Limited and the Company, with the 2025 interim report, containing all required information, to be made available to shareholders and published on the aforementioned websites in due course - The interim results announcement has been published on the websites of The Stock Exchange of Hong Kong Limited and the Company[111](index=111&type=chunk) - The Company's 2025 interim report, containing all information required by the Listing Rules, will be made available to shareholders and published on the aforementioned websites in due course[111](index=111&type=chunk)

Investment Rating - The report maintains a strong confidence in the pharmaceutical sector, anticipating a reversal in the market by 2025, with innovative drugs and the recovery of left-side sectors being the main investment opportunities [5][13]. Core Views - The report highlights that major domestic pharmaceutical companies have stabilized their revenues after previous disruptions from centralized procurement, with visible results from their innovation transformations [2][12]. - It emphasizes the importance of BD (business development) collaborations, citing significant deals involving major multinational pharmaceutical companies, which could lead to sustainable income for companies like Heng Rui Medicine [2][12]. - The report suggests focusing on innovative drugs, particularly dual/multi-target antibodies and drugs addressing unmet clinical needs, as key investment opportunities [3][5][13]. Summary by Sections Pharmaceutical Sector - The innovative drug market is experiencing adjustments, but the overall policy environment remains supportive for innovation [3]. - After ten rounds of centralized procurement, the risks for leading pharmaceutical companies are gradually being alleviated, revealing competitive innovative drug pipelines [3][22]. - The report recommends paying attention to leading pharmaceutical companies' transformation results and overseas opportunities [3][5]. Biopharmaceuticals - Jin Sai Pharmaceutical's dual-target ADC GenSci143 has received IND approval, showing potential as a leading treatment option for prostate cancer and other solid tumors [3][41][46]. Medical Devices - The registration and promotion of innovative products in the domestic medical device sector are accelerating, contributing to long-term high-quality development [4][47]. - Companies like Huitai Medical have reported significant revenue growth, with innovative products rapidly expanding their market presence [4][47][48]. Traditional Chinese Medicine - Some companies are facing performance pressure during the destocking cycle, but strong brands like Dong'e Ejiao continue to achieve resilient growth [4][54][56]. Investment Recommendations - The report suggests focusing on innovative drugs, particularly in the fields of dual/multi-target antibodies and drugs for chronic diseases, as well as opportunities in ADC and small nucleic acid sectors [5][13]. - The medical device sector is expected to see a significant performance turnaround in the second half of the year, driven by favorable policies and recovering tender trends [5][13]. Key Targets - Notable companies to watch include Innovent Biologics, Kintor Pharmaceutical, and Heng Rui Medicine, among others [6].