合作伙伴征集：2025全球手术机器人大会 报名：首届全球眼科大会 | 暂定议程 报名：首届全球心血管大会 | 奖项报名 报名：首届全球骨科大会 | 奖项报名 2025年3月18日， 瑛泰医疗 （股票代码：01501.HK）发布了2024年全年业绩公告。 # 财务表现 收入 ：2024年总收入达到 8.5亿元人民币，同比增长13.17% 。这一增速超过了2024年中国医疗器械行业平均收入增速，但低于公司过去三年的平均增长率。 毛利与毛利率 ： 毛利为5.37亿元，同比大幅增长22.73% ；毛利率从58.19%提升至63.11%，显示出公司在产品结构优化和生产效率提高方面取得了一定成效。 净利润 ：2024年 净利润为1.9亿元人民币，同比增长24.03% ，增速显著高于收入增长。 每股盈利 ：2024年每股基本盈利及摊薄盈利均为人民币1.10元，较2023年的人民币0.92元增长约19.57%。 股息政策 ：董事会决议不就报告期宣派任何末期股息。 | | 2024 年 | 2023 年 | 飼育 | | --- | --- | --- | --- | | | 人民幣千元 人民幣千元 | | | | 收入 | ...

Investment Rating - The report maintains a "Buy" rating for INT Medical, expecting a return exceeding 15% over the next 12 months [2][18]. Core Insights - INT Medical's revenue for 2024 is projected to grow by 13.2% year-on-year to RMB 852 million, slightly below the forecasted 13% due to pressures from value-based pricing (VBP) and intense competition in the CDMO sector [1][2]. - The company achieved a significant gross margin improvement of 5 percentage points, reaching 63.1% in 2024, driven by increased capacity utilization and automation [1]. - Overseas sales are optimistic, with total overseas revenue expected to grow by 24.2% year-on-year to RMB 253 million, accounting for 29.6% of total sales [2]. Financial Summary - Revenue is projected to increase from RMB 753 million in 2023 to RMB 1,025 million in 2025, reflecting a year-on-year growth rate of 20.4% [3]. - The attributable net profit is expected to rise from RMB 192 million in 2024 to RMB 206 million in 2025, with a year-on-year growth rate of 7.5% [3]. - The earnings per share (EPS) is forecasted to grow from RMB 1.10 in 2024 to RMB 1.17 in 2025, indicating a growth rate of 6.6% [3]. Valuation - The target price for INT Medical is set at HKD 33.68 based on a 9-year DCF model with a terminal growth rate of 2.0% and a weighted average cost of capital (WACC) of 10.73% [2][10].

Investment Rating - The report maintains a "BUY" rating for INT Medical, indicating a potential return of over 15% over the next 12 months [17]. Core Insights - INT Medical's revenue for 2024 grew by 13.2% YoY to RMB 852 million, which was 13% below the analyst's estimate, primarily due to pressures on its CDMO business from VBP and increased competition [1]. - The company's attributable net profit increased by 22.7% YoY to RMB 192 million, with a net profit margin improvement of 1.7 percentage points [1]. - The target price is set at HK$33.68, reflecting a 25% upside from the current price of HK$26.95 [3]. Financial Performance Summary - Revenue projections for FY25E, FY26E, and FY27E are RMB 1,025 million, RMB 1,225 million, and RMB 1,398 million, respectively, with YoY growth rates of 20.4%, 19.5%, and 14.1% [2]. - Attributable net profit for FY25E, FY26E, and FY27E is expected to be RMB 206 million, RMB 245 million, and RMB 280 million, with YoY growth rates of 7.5%, 18.7%, and 14.4% [2]. - The gross margin improved to 63.1% in 2024, up 5 percentage points, driven by enhanced capacity utilization and increased automation [7]. Market and Operational Insights - INT Medical expanded its overseas customer base to 281, covering over 86 countries and regions, with overseas revenue growing by 24.2% YoY to RMB 253 million, representing 29.6% of total sales [7]. - The company has implemented cost-reduction and efficiency-enhancement measures, which are expected to stabilize gross margins despite the negative impact of VBP [7]. - The report anticipates solid revenue growth for INT Medical in 2025E, with revenue and attributable net profit projected to increase by 20.4% YoY and 7.5% YoY, respectively [7].

Financial Performance - The company's revenue for the year ended December 31, 2024, was approximately RMB 851.95 million, an increase of about 13.17% compared to RMB 752.84 million for the year ended December 31, 2023[3]. - Gross profit for the reporting period was approximately RMB 537.66 million, with a gross margin increase from approximately 58.19% to about 63.11% compared to the previous year[5]. - Net profit for the year was approximately RMB 190.05 million, representing a growth of about 24.03% from RMB 153.23 million in the prior year[5]. - Basic and diluted earnings per share were both approximately RMB 1.10, an increase of about 19.57% from RMB 0.92 in the previous year[5]. - Revenue from the sale of medical devices was approximately RMB 773.33 million, up about 15.23% from RMB 671.10 million for the year ended December 31, 2023[5]. - The company reported a total comprehensive income of approximately RMB 190.83 million for the year, compared to RMB 153.69 million in the previous year[10]. - The company's total revenue primarily comes from the sale of medical devices, with specific return policies in place[20]. - Revenue from cardiovascular devices was RMB 662,220 thousand in 2024, up 8.9% from RMB 608,231 thousand in 2023[24]. - Revenue from neuro and peripheral devices surged to RMB 108,018 thousand, a significant increase of 81.0% compared to RMB 59,721 thousand in 2023[24]. - The external customer revenue from the heart intervention business was RMB 736,802 thousand in 2024, compared to RMB 625,952 thousand in 2023, reflecting a growth of 17.7%[31]. Expenses and Costs - Research and development expenses for the year were approximately RMB 149.13 million, compared to RMB 125.85 million in the previous year[7]. - The company's total operating expenses increased to RMB 269,865 thousand in 2024, up from RMB 231,934 thousand in 2023, marking a rise of 16.4%[38]. - Distribution costs increased by approximately 17.79% to RMB 79.39 million, accounting for about 9.32% of total revenue, compared to 8.95% for the year ended December 31, 2023[99]. - Administrative expenses rose by approximately 21.54% to RMB 120.84 million, primarily due to increased employee costs, depreciation, and amortization[100]. - The total employee cost for the reporting period was approximately RMB 269.87 million, an increase from RMB 231.93 million in the previous year[111]. Assets and Liabilities - Non-current assets increased to RMB 1,175,027 thousand in 2024 from RMB 1,078,218 thousand in 2023, representing an increase of 8.99%[12]. - Current assets rose to RMB 892,133 thousand in 2024, up from RMB 724,289 thousand in 2023, marking a growth of 23.19%[12]. - Total liabilities increased to RMB 434,456 thousand in 2024 from RMB 316,829 thousand in 2023, reflecting a rise of 37.06%[12]. - Net assets grew to RMB 1,786,492 thousand in 2024, compared to RMB 1,678,378 thousand in 2023, an increase of 6.44%[13]. - The company's cash and cash equivalents increased to RMB 521,954 thousand in 2024 from RMB 423,668 thousand in 2023, a growth of 23.19%[12]. - Trade and other receivables rose to RMB 118,881 thousand in 2024, up from RMB 125,193 thousand in 2023, indicating a decrease of 5.06%[12]. - The company's equity attributable to shareholders increased to RMB 1,774,227 thousand in 2024 from RMB 1,649,241 thousand in 2023, a rise of 7.58%[13]. - The company reported a trade and other receivables impairment loss of RMB (625,000) in 2024, contrasting with a gain of RMB 407,000 in 2023[41]. - Trade payables increased from RMB 32,854,000 in 2023 to RMB 44,229,000 in 2024, reflecting a rise of approximately 34.7%[60]. Research and Development - Research and development expenses for the year were approximately RMB 189.93 million, an increase of 5.92% compared to RMB 179.31 million for the year ended December 31, 2023[101]. - The R&D team consists of professionals with doctoral and master's degrees, and the company holds 406 registered patents and 215 pending patent applications[75]. - The company aims to expand its product pipeline and increase R&D investment to accelerate core product development and new product certification[90]. Corporate Governance and Compliance - The company has adopted the standard code of conduct for securities trading by directors and supervisors, confirming compliance during the reporting period[133]. - The company has adhered to all provisions of the corporate governance code, except for the separation of roles between the Chairman and CEO, which is currently held by Dr. Liang Dongke[135]. - The Audit Committee, consisting of three members, has reviewed the audited consolidated annual results and confirmed compliance with applicable accounting principles and sufficient disclosure[136]. - The preliminary financial figures for the year ending December 31, 2024, have been verified by KPMG, confirming consistency with the audited financial statements[138]. Future Plans and Strategies - The company plans to continue expanding its product offerings and market presence, particularly in the heart intervention and neuro intervention sectors[28]. - The company plans to utilize approximately RMB 110.00 million for the construction of a new factory in Zhuhai and RMB 156.33 million for the Shandong Yingtai Innovative Medical Device Industrial Park project[109]. - The company plans to issue 5,000,000 shares at a price of RMB 12.00 per share under the restricted share plan, with RMB 5 million allocated to share capital and RMB 55 million to capital reserves[64]. - The company has entered into a sales framework agreement with Kangdelai for the period from 2025 to 2027, with an annual transaction amount not exceeding RMB 20 million[87]. - The establishment of joint ventures, including Shanghai Yingtai Asset Management and Shanghai Yingtai Shenghuo Trading, is expected to enhance the company's asset management and sales capabilities in cosmetics and healthcare products[88][89]. Shareholder Information - The company’s major shareholder, Kang De Lai, holds approximately 24.35% of the company's shares, qualifying as a related party under listing rules[86]. - The company has repurchased 800,000 H-shares at a maximum price of HKD 26.00 per share, totaling approximately RMB 18.92 million[65]. - The company agreed to repurchase approximately 5.0% equity in a non-wholly owned subsidiary for a total price of RMB 60,081,753.42, increasing its ownership to approximately 61.36%[80]. - The company issued 5,000,000 new domestic shares under the 2023 equity incentive plan, increasing the total number of shares to 176,000,000[83]. Employee and Workforce - The group employed 1,735 employees as of December 31, 2024, an increase from 1,567 employees as of December 31, 2023[111].

Share Incentive Plan - The company granted a total of 150,000 restricted shares to Dr. Liang Dongke under the share incentive plan [3]. - The purchase price for the granted shares was RMB 12.0, while the market price on the grant date was HKD 28.6 [4]. - The company has a lock-up period of 60 months starting from May 13, 2022, for the granted shares [4]. - The incentive plan includes a clawback mechanism for cases of misconduct or breach of duty by the incentive recipients [6]. - If the incentive recipient leaves the company before the lock-up period ends, the shares will be repurchased at the purchase price [8]. - The performance indicators for the incentive plan are based on net profit growth rates from 2019 as a baseline [4]. - The company stated that the number of shares available for future grants under the share incentive plan is zero following the completion of the grant [19]. - If an incentive object loses labor ability due to work-related injury, shares will be repurchased at the purchase price plus bank interest if the lock-up period is not completed [13]. - In the event of the death of an incentive object due to work-related duties, shares that have been realized will not be processed, while unrealized shares will be repurchased [14]. - If an incentive object no longer qualifies due to violations, shares will not be processed if the lock-up period is completed; otherwise, unrealized shares will be repurchased [18]. - The company will repurchase shares of an incentive object if the company loses control over the subsidiary where the incentive object works, depending on the lock-up period [17]. - The company will terminate the grant of domestic shares that have not been completed due to installment issuance [13][14][17][18]. - The company emphasized that the repurchase amount will be received by the designated heirs or legal heirs of the deceased incentive object [15]. - The company will not provide financial assistance arrangements for incentive objects [19]. Performance Targets and Strategies - The performance target for the 2023 fiscal year requires a net profit growth rate of no less than 60% compared to 2019 [4]. - The company plans to continue its market expansion and product development strategies in the upcoming fiscal year [2]. - The company aims to enhance its competitive position through strategic acquisitions and partnerships [2]. - The incentive plan is designed to align the interests of the management with the long-term goals of the company [2]. Governance and Compliance - The company clarified that the previous announcement regarding exceeding Dr. Liang's personal limit violated Listing Rule 17.11, which requires compliance with the terms of the share plan [21]. - The board of directors consists of various executive and non-executive members, including Dr. Liang Dongke and Mr. Lin Sen [22].

Share Incentive Plans - The total number of shares available for issuance under the 2023 Equity Incentive Plan is 5,000,000 shares, accounting for approximately 2.84% of the company's issued shares as of the 2023 annual report date [6]. - The maximum number of H shares under the H Share Reward and Trust Plan is 10,420,000 shares, representing about 5.92% of the total share capital as of the 2023 annual report date [7]. - The percentage of shares available for issuance under the existing share incentive plans is zero, as all 5,000,000 restricted shares have been granted [3]. Disclosure Errors - The company corrected a disclosure error regarding 150,000 restricted shares, clarifying that there were zero shares canceled and 150,000 shares that had lapsed during the reporting period [13]. - The main reason for the disclosure error was the lack of clarity in the share incentive plan regarding the classification of restricted shares as "canceled" or "lapsed" [14]. Compliance and Internal Controls - The company plans to strengthen internal controls related to the share incentive plan, including quarterly reviews of grant details and monitoring of vesting schedules [15]. - The company will conduct a comprehensive review of the existing share plan to ensure compliance with the latest listing rules and provide training for key personnel on relevant regulations [17]. Shareholder Actions - Dr. Liang Dongke received a maximum allocation of 83,400 restricted shares under the share incentive plan, which exceeded his personal limit, violating Listing Rule 17.03C(3) [12]. - The board will seek shareholder approval to increase Dr. Liang's personal limit and amend the share incentive plan to clarify the status of voluntarily lapsed restricted shares [19].

Financial Performance - For the six months ended June 30, 2024, the company's revenue was approximately RMB 392.32 million, an increase of 15.47% compared to RMB 339.76 million for the same period in 2023[5]. - Gross profit for the same period was RMB 246.77 million, reflecting a growth of 23.17% from RMB 200.35 million in 2023[6]. - The profit for the period was RMB 99.18 million, which is a 23.19% increase from RMB 80.51 million in the previous year[6]. - The gross margin improved from 58.97% to 62.90% during the reporting period[6]. - Basic earnings per share for the period were RMB 0.58, up 20.83% from RMB 0.48 in 2023[5]. - Revenue from interventional medical devices was RMB 345.48 million, a 19.16% increase from RMB 289.93 million in the same period last year[6]. - Revenue from medical standard parts was RMB 26.74 million, representing a 31.14% increase from RMB 20.39 million in 2023[6]. - Revenue from agency business decreased to RMB 14.82 million, down 48.13% from RMB 28.57 million in the previous year[6]. - The increase in revenue and profit was primarily driven by higher sales of interventional medical devices and medical standard parts[6]. Research and Development - The company has a strong R&D team with 364 registered patents and 199 pending patents as of June 30, 2024[9]. - Research and development expenses totaled approximately RMB 85.93 million, with capitalized R&D expenses at RMB 15.18 million, a decrease from RMB 21.94 million for the six months ended June 30, 2023[23]. - The company aims to further develop its product pipeline and increase R&D investment for core product advancements and new product certifications[15]. - The company reported a significant increase in R&D expenses, which rose to RMB 70,754 thousand from RMB 64,593 thousand, reflecting a focus on innovation[89]. - Research and development costs amounted to RMB 85,931,000 in the first half of 2024, slightly down from RMB 86,537,000 in 2023, indicating a decrease of 0.7%[113]. Market Expansion and Strategy - The company plans to enhance brand recognition and expand market share, particularly in overseas markets, in the second half of 2024[15]. - The distribution network covers 2,795 hospitals in China and has expanded to 255 overseas clients across 83 countries and regions[10]. - The company is actively pursuing new product development, focusing on innovative medical devices to enhance its competitive edge in the market[54]. - The company continues to focus on expanding its market presence and enhancing its product offerings in the interventional medical device sector[102]. - Future outlook remains positive, with expectations of continued growth in user engagement and market expansion strategies being implemented[53]. Financial Position and Liquidity - The group's liquidity position remained strong, with cash and cash equivalents amounting to approximately RMB 330.64 million as of June 30, 2024[26]. - The total current assets were approximately RMB 647.23 million, while total current liabilities were about RMB 239.81 million, resulting in a current ratio of approximately 2.70[26]. - The company reported a net decrease in cash and cash equivalents of RMB 93,605 thousand for the six months ended June 30, 2024, compared to a decrease of RMB 64,248 thousand in 2023[98]. - The total cash and cash equivalents as of June 30, 2024, were RMB 330,640 thousand, down from RMB 458,217 thousand in 2023[98]. - The company’s total assets as of June 30, 2024, were RMB 1,678,655 thousand, reflecting a growth from RMB 1,649,241 thousand at the end of 2023[97]. Shareholder Information and Equity - The total number of shares outstanding as of June 30, 2024, is 176,000,000, which includes 71,786,608 domestic shares and 104,213,392 H shares[47]. - The company issued 5,000,000 new domestic shares under the 2023 equity incentive plan, increasing the total issued shares to 176,000,000[14]. - The company has adopted a share incentive plan to grant up to 5,000,000 domestic shares to no more than 100 employees, with a grant price of RMB 12.0 per share[59]. - The company has received approval from the China Securities Regulatory Commission to issue an additional 3,000,000 incentive shares under the share incentive plan[61]. - The company has granted a total of 5,000,000 restricted shares under the 2023 equity incentive plan, representing 2.98% of the total issued shares as of the plan's adoption date[71]. Corporate Governance and Compliance - The audit committee has confirmed that the interim financial results comply with applicable accounting principles and have been adequately disclosed[44]. - The company has established an audit committee in accordance with the corporate governance code, consisting of three members, including independent non-executive directors[44]. - The independent auditor, KPMG, has reviewed the interim financial report without any modifications to the conclusion[45]. - The company has complied with the standard code of conduct for securities trading by all directors and supervisors during the reporting period[41]. - The company has no additional disclosure obligations under the listing rules regarding specific financial information[42]. Acquisitions and Investments - The company acquired an additional 5.0% equity in a non-wholly owned subsidiary for a total consideration of RMB 60,081,753.42, increasing its ownership to approximately 61.36%[13]. - The company purchased a 3.80% stake in the Yingtai Fund for RMB 46 million during the six months ended June 30, 2024[159]. - The company agreed to acquire approximately 36.67% of Shanghai Qimu and 4.70% of Shanghai Puhui for a total consideration of RMB 18.9 million[160]. - The company is focused on investing in early-stage companies in the medical device and biotechnology sectors through various funds[35]. - The company’s equity interest in Shanghai Qimu, Shanghai Puhui, and Shanghai Hanling increased to 90.00%, 58.96%, and 61.36% respectively as of June 30, 2024, compared to 53.33%, 54.26%, and 56.36% as of December 31, 2023[160].

[Performance Highlights](index=1&type=section&id=Interim%20Performance%20Announcement) [Financial Summary](index=1&type=section&id=Financial%20Summary) The company achieved strong H1 2024 growth, with revenue up 15.47% to RMB 392 million and profit up 23.19% to RMB 99.18 million, driven by increased sales and improved gross margin, with no interim dividend declared Key Financial Indicators for H1 2024 | Indicator | H1 2024 (RMB '000) | H1 2023 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Revenue | 392,322 | 339,764 | 15.47% | | Gross Profit | 246,768 | 200,350 | 23.17% | | Profit for the Period | 99,178 | 80,505 | 23.19% | | Basic Earnings Per Share (RMB) | 0.58 | 0.48 | 20.83% | | Diluted Earnings Per Share (RMB) | 0.58 | 0.47 | 23.40% | - Revenue growth was primarily driven by increased sales of interventional medical devices (revenue up **19.16%** YoY) and medical standard parts (revenue up **31.14%** YoY)[3](index=3&type=chunk) - Gross margin increased from **58.97%** in the prior period to **62.90%** in the reporting period, mainly due to increased sales of interventional medical devices[3](index=3&type=chunk) - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2024[3](index=3&type=chunk) [Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) The company reported total revenue of RMB 392 million and gross profit of RMB 247 million, with operating profit reaching RMB 112 million, a 24.7% YoY increase, resulting in a profit for the period of RMB 99.18 million Consolidated Statement of Profit or Loss Summary | Item | H1 2024 (RMB '000) | H1 2023 (RMB '000) | | :--- | :--- | :--- | | Revenue | 392,322 | 339,764 | | Cost of Sales | (145,554) | (139,414) | | **Gross Profit** | **246,768** | **200,350** | | Other Income | 23,941 | 22,794 | | Distribution Costs | (33,607) | (33,021) | | Administrative Expenses | (55,219) | (36,389) | | Research and Development Expenses | (70,754) | (64,593) | | **Operating Profit** | **111,781** | **89,622** | | Profit Before Tax | 110,749 | 88,417 | | **Profit for the Period** | **99,178** | **80,505** | [Consolidated Statement of Financial Position](index=5&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, total assets were RMB 1.966 billion, total liabilities RMB 275 million, and net assets RMB 1.691 billion, with the current ratio improving from 2.29 to 2.70 and total equity increasing to RMB 1.691 billion Balance Sheet Summary | Item | June 30, 2024 (RMB '000) | December 31, 2023 (RMB '000) | | :--- | :--- | :--- | | **Non-current Assets** | **1,318,590** | **1,305,337** | | **Current Assets** | **647,232** | **724,289** | | Cash and Cash Equivalents | 330,640 | 423,668 | | **Current Liabilities** | **239,806** | **316,829** | | **Non-current Liabilities** | **34,910** | **34,419** | | **Net Assets** | **1,691,106** | **1,678,378** | | **Total Equity** | **1,691,106** | **1,678,378** | [Notes to the Financial Statements (Selected)](index=7&type=section&id=Notes%20to%20the%20Financial%20Statements) [Revenue and Segment Reporting](index=8&type=section&id=3%20Revenue%20and%20Segment%20Reporting) Revenue primarily derives from cardiovascular interventional business, with interventional medical device sales as the core at RMB 345 million (up 19.16% YoY), while mainland China remains the main market (71.3% of revenue) and overseas markets show significant growth Revenue by Product Category | Product Category | H1 2024 (RMB '000) | H1 2023 (RMB '000) | YoY Change | | :--- | :--- | :--- | :--- | | Sales of Interventional Medical Devices | 345,476 | 289,927 | +19.16% | | Sales of Medical Standard Parts | 26,743 | 20,387 | +31.14% | | Agency Business | 14,818 | 28,569 | -48.13% | | Molds and Others | 3,728 | 848 | +339.62% | | **Total (from Contracts with Customers)** | **390,765** | **339,731** | **+15.02%** | Revenue by Geographical Location | Region | H1 2024 (RMB '000) | H1 2023 (RMB '000) | YoY Change | | :--- | :--- | :--- | :--- | | Mainland China | 279,623 | 267,569 | +4.50% | | Europe | 28,248 | 18,240 | +54.87% | | United States | 21,157 | 15,964 | +32.53% | | Other Countries and Regions | 63,294 | 37,991 | +66.60% | | **Total** | **392,322** | **339,764** | **+15.47%** | - The company primarily operates one reportable segment: cardiovascular interventional business, which contributed **RMB 344 million** in external customer revenue and **RMB 95.49 million** in net profit[16](index=16&type=chunk)[22](index=22&type=chunk) [Share Capital, Reserves and Dividends](index=17&type=section&id=10%20Share%20Capital%2C%20Reserves%20and%20Dividends) The company issued 5 million new shares, increasing total share capital to 176 million shares, repurchased 800,000 H-shares, and paid a 2023 final dividend of RMB 0.27 per share totaling RMB 47.52 million, with no 2024 interim dividend declared - The company issued **5,000,000** new shares under a restricted share scheme, increasing total share capital to **176,000,000** shares[38](index=38&type=chunk) - In April 2024, the company repurchased **800,000** of its own shares on the Stock Exchange for a total consideration of approximately **RMB 18.92 million**[40](index=40&type=chunk) - The company paid a 2023 final dividend of **RMB 0.27** per share, totaling **RMB 47.52 million**, and the Board resolved not to declare a 2024 interim dividend[42](index=42&type=chunk)[66](index=66&type=chunk) [Acquisition of Interests in Subsidiaries](index=19&type=section&id=11%20Acquisition%20of%20Interests%20in%20Subsidiaries) To optimize equity structure and achieve development strategies, the company increased its stakes in Shanghai Qimu, Shanghai Puhui, and Shanghai Hanling to 90.00%, 58.96%, and 61.36% respectively through equity transfers - The company increased its equity interests in three subsidiaries: Shanghai Qimu, Shanghai Puhui, and Shanghai Hanling[43](index=43&type=chunk) Changes in Subsidiary Equity Interests | Subsidiary | Post-Acquisition Equity Ratio | Pre-Acquisition Equity Ratio | | :--- | :--- | :--- | | Shanghai Qimu | 90.00% | 53.33% | | Shanghai Puhui | 58.96% | 54.26% | | Shanghai Hanling | 61.36% | 56.36% | [Management Discussion and Analysis](index=20&type=section&id=Management%20Discussion%20and%20Analysis) [Business Overview and Outlook](index=20&type=section&id=Business%20Overview%20and%20Outlook) As a leading Chinese cardiovascular interventional device manufacturer, the company boasts a complete industry chain and strong R&D, actively expanding product registrations and global sales, with plans to further expand market share, increase R&D, and enhance automated production in H2 2024 - The company is a leading Chinese manufacturer of cardiovascular interventional devices, possessing a complete industry chain from design to sterilization[44](index=44&type=chunk) - As of June 30, 2024, the company held **364** registered patents and **199** pending patent applications, establishing an extensive distribution network covering **2,795** hospitals in China and **83** countries and regions overseas[46](index=46&type=chunk)[47](index=47&type=chunk) - The company officially changed its name to "Shanghai INT Medical Instruments Co., Ltd." (上海瑛泰醫療器械股份有限公司) and its stock short name to "INT MEDICAL" (瑛泰醫療) in early 2024[49](index=49&type=chunk) - H2 2024 Outlook: (1) Expand market share, especially in overseas markets; (2) Increase R&D investment to advance core product pipelines; (3) Enhance automated and scaled production[52](index=52&type=chunk) [Financial Review](index=24&type=section&id=Financial%20Review) In H1 2024, revenue grew 15.47% to RMB 392 million, driven by sales growth and improved gross margin (58.97% to 62.90%), while administrative expenses surged 51.74%, profit for the period still increased 23.19% to RMB 99.18 million Key Financial Items Changes | Item | H1 2024 (RMB Million) | H1 2023 (RMB Million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 392.32 | 339.76 | +15.47% | | Cost of Sales | 145.55 | 139.41 | +4.40% | | Gross Profit | 246.77 | 200.35 | +23.17% | | Distribution Costs | 33.61 | 33.02 | +1.79% | | Administrative Expenses | 55.22 | 36.39 | +51.74% | | R&D Expenses (Expensed) | 70.75 | 64.59 | +9.54% | | Profit for the Period | 99.18 | 80.51 | +23.19% | - Administrative expenses significantly increased by **51.74%**, primarily due to depreciation, amortization, and additional taxes for the R&D center in Shanghai[59](index=59&type=chunk) - Total R&D expenses were approximately **RMB 85.93 million**, of which capitalized R&D expenses were **RMB 15.18 million**, a decrease from **RMB 21.94 million** in the prior period[60](index=60&type=chunk) [Liquidity, Financial Resources and Capital Management](index=27&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Management) The company maintains a robust financial position with RMB 331 million in cash and equivalents, an improved current ratio of 2.70, and a reduced gearing ratio of 4.00%, with remaining global offering proceeds planned for production expansion and industrial park construction by year-end 2024 - As of June 30, 2024, the Group's cash and cash equivalents were approximately **RMB 331 million**[63](index=63&type=chunk) - The current ratio improved from **2.29** at the end of 2023 to **2.70**, and the gearing ratio decreased from **5.65%** to **4.00%**[63](index=63&type=chunk)[64](index=64&type=chunk) - Approximately **RMB 48.5 million** of the net proceeds from the global offering remain unutilized and are expected to be fully utilized by December 2024[68](index=68&type=chunk) - The Group holds minority equity investments in four funds, classified as financial assets at fair value through profit or loss, with a total fair value of **RMB 178 million** at period-end[71](index=71&type=chunk)[72](index=72&type=chunk) [Other Information](index=33&type=section&id=Other%20Information) [Corporate Governance](index=33&type=section&id=Corporate%20Governance) The company largely complied with the Corporate Governance Code, with one deviation where the Chairman and CEO roles are combined, which the Board believes benefits management and ensures power balance, and the Audit Committee has reviewed the interim results - The company complied with the Corporate Governance Code, but deviated from Code Provision C.2.1, where the roles of Chairman and Chief Executive Officer are not segregated and are both held by Dr. Liang Dongke[79](index=79&type=chunk) - The Board believes that Dr. Liang's dual role, given his extensive experience, benefits group management, and the Board's composition with multiple non-executive and independent non-executive directors ensures a balance of power[79](index=79&type=chunk) - The Audit Committee has reviewed these interim results, which were also independently reviewed by the company's auditor, KPMG[80](index=80&type=chunk)[81](index=81&type=chunk)

Financial Performance - The company's revenue for the year ended December 31, 2023, reached approximately RMB 752.84 million, an increase of about 28.50% compared to RMB 585.88 million for the year ended December 31, 2022[7]. - The net profit for the year was approximately RMB 153.23 million, an increase of about 14.50% from RMB 133.83 million in 2022[7]. - The company achieved a gross profit margin of 58.19% and a net profit margin of 20.35% for the year ended December 31, 2023[13]. - Revenue for the reporting period was approximately RMB 752.84 million, a 28.50% increase from RMB 585.88 million in 2022[15]. - Gross profit for the reporting period was approximately RMB 438.07 million, with a gross margin increasing to about 58.19% from 56.75% for the year ended December 31, 2022[30]. - The basic and diluted earnings per share for the year were RMB 0.92, compared to RMB 0.79 for the year ended December 31, 2022[7]. Revenue Sources - Revenue from the sale of interventional medical devices amounted to approximately RMB 671.10 million, representing a growth of approximately 32.76% from RMB 505.48 million in the previous year[7]. - Revenue from interventional medical devices was approximately RMB 671.10 million, accounting for 89.14% of total revenue, up from 86.28% in the previous year[28]. Research and Development - The company registered 19 new product registrations during the reporting period, including 6 Class III medical device registrations and 13 Class II registrations[9]. - The R&D team consists of professionals with doctoral and master's degrees, holding 334 registered patents and 208 pending patents as of December 31, 2023[17]. - The company plans to enhance its product pipeline, increase R&D investment, and expand market share through new product launches[11]. - Research and development expenses were approximately RMB 179.31 million, a 27.22% increase from RMB 140.94 million for the year ended December 31, 2022, due to ongoing development and commercialization of existing pipeline products and new products[35]. Distribution and Market Expansion - The company expanded its distribution network to cover 2,660 hospitals across 23 provinces, 4 municipalities, and 5 autonomous regions in China, as well as 226 overseas customers in 77 countries and regions[10]. - The distribution network covers 2,660 hospitals in China and 226 overseas clients across 77 countries and regions[18]. - The company is exploring market expansion opportunities, particularly in the medical device sector, to enhance its competitive position[90]. Assets and Liabilities - The company's total assets as of December 31, 2023, reached RMB 2,029,626 thousand, an increase of approximately 11.06% from RMB 1,827,334 thousand in 2022[14]. - Total liabilities increased to RMB 351,248 thousand in 2023, up 28.54% from RMB 273,230 thousand in 2022[14]. - The equity attributable to shareholders rose to RMB 1,649,241 thousand, reflecting a growth of 9.09% compared to RMB 1,512,015 thousand in 2022[14]. Shareholder Information - The company proposed a final dividend of RMB 0.27 per share for the year ended December 31, 2023, compared to RMB 0.24 per share for the previous year[41]. - The company's share capital as of December 31, 2023, consisted of 66,786,608 domestic shares (39.06%) and 104,213,392 H shares (60.94%) of the total issued share capital[68]. - The largest customer accounted for 8.3% of total sales, while the top five customers together represented 22.8% of total sales[66]. Corporate Governance - The company has established a corporate governance structure that includes a general meeting of shareholders, a board of directors, a supervisory board, and management, ensuring clear authority and operational norms[136]. - The board of directors consists of 2 executive directors, 4 non-executive directors, and 3 independent non-executive directors, ensuring strong independence[141]. - The company has complied with the corporate governance code and has adopted most of the recommended best practices[137]. Risk Management - The company has established a risk management and internal control framework covering procurement, sales, human resources, marketing, tax management, capital management, data security, and financial reporting[168]. - The audit committee believes that the implementation and effectiveness of the group's risk management and internal control procedures are satisfactory, with no significant concerns regarding financial, operational, or compliance controls[168]. - The company conducts regular risk assessments to ensure the effectiveness of its risk management and internal control processes[168]. Social Responsibility and ESG - The company integrates ESG principles into its strategic and operational management, establishing 10 assessment indicators to regularly measure business development[190]. - The company is committed to sustainable development, focusing on energy conservation, resource savings, and environmental friendliness in its operations[190]. - The company emphasizes its commitment to social responsibility and employee welfare, ensuring competitive salaries and a safe working environment[191]. Future Outlook - The company plans to release its next report for the year 2024 in 2025, covering the period from January 1, 2024, to December 31, 2024[186]. - The future outlook remains positive, with expectations of revenue growth driven by increased market demand and product innovation[90].

Financial Performance - The company's revenue for the year ended December 31, 2023, was RMB 752.84 million, representing an increase of 28.50% compared to RMB 585.88 million in 2022[2]. - Gross profit for the same period was RMB 438.07 million, up 31.76% from RMB 332.49 million in the previous year[2]. - Net profit for the year was RMB 153.23 million, reflecting a growth of 14.50% from RMB 133.83 million in 2022[3]. - Basic and diluted earnings per share were both RMB 0.92, compared to RMB 0.79 and RMB 0.78 respectively in the prior year, marking increases of 16.46% and 17.95%[3]. - Total comprehensive income for the year was RMB 153.69 million, compared to RMB 135.72 million in 2022, indicating an increase of 13.23%[6]. Assets and Liabilities - Non-current assets increased to RMB 1,305.34 million as of December 31, 2023, from RMB 1,025.39 million in 2022, showing a growth of 27.38%[7]. - Current liabilities decreased to RMB 724.29 million in 2023 from RMB 801.94 million in 2022, a reduction of 9.66%[8]. - The company's total equity increased to RMB 1,678.38 million in 2023, up from RMB 1,554.10 million in the previous year, representing an increase of 8.00%[9]. - The company reported a significant increase in trade and other receivables, which rose to RMB 125.19 million in 2023 from RMB 79.53 million in 2022, an increase of 57.38%[7]. Revenue Breakdown - Revenue from cardiovascular and neurovascular devices amounted to RMB 608,231 thousand, while orthopedic and other devices generated RMB 3,145 thousand in 2023[15]. - The geographical breakdown of revenue shows that mainland China contributed RMB 549,503 thousand, up from RMB 437,344 thousand in 2022, indicating a growth of about 25.6%[17]. - Revenue from external customers in the cardiac intervention segment reached RMB 625,952,000, a 27.8% increase from RMB 489,704,000 in 2022[21]. - Total segment revenue for 2023 was RMB 801,562,000, up 27.1% from RMB 630,316,000 in 2022[23]. Expenses and Costs - Total operating expenses, including R&D costs, increased to RMB 125,850,000 in 2023 from RMB 99,634,000 in 2022, marking a 26.3% rise[27]. - Sales costs for the reporting period were approximately RMB 314.77 million, an increase of about 24.22% compared to RMB 253.40 million for the year ended December 31, 2022[67]. - Administrative expenses for the reporting period were approximately RMB 99.43 million, an increase of about 54.66% or RMB 35.14 million from approximately RMB 64.29 million for the year ended December 31, 2022[72]. - Research and development expenses for the reporting period were approximately RMB 179.31 million, an increase of about 27.22% or RMB 38.37 million from approximately RMB 140.94 million for the year ended December 31, 2022[73]. Dividends and Shareholder Returns - The board proposed a final dividend of RMB 0.27 per share for the year ended December 31, 2023, compared to RMB 0.24 per share in 2022, reflecting a 12.5% increase[49]. - The company’s cash dividends approved for the previous fiscal year amounted to RMB 40,320 thousand in 2023, down from RMB 43,680 thousand in 2022, a decrease of 7.5%[50]. Investments and Capital Expenditures - The company invested RMB 150 million in non-listed funds managed by Huai Ge Health Management, with RMB 125 million paid as of December 31, 2023[40]. - The company also invested RMB 50 million in another non-listed fund aimed at the healthcare sector, contributing RMB 10 million as of December 31, 2023[40]. - The group reported capital expenditures of approximately RMB 231.20 million for the reporting period, a decrease from RMB 301.06 million in 2022[90]. Research and Development - The company has a strong R&D capability and aims to leverage its comprehensive medical device registration certificates to gain a competitive advantage in the DRG/DIP payment system[51]. - The company plans to further develop its product pipeline and increase R&D investment, focusing on core product development and new product certification in 2024[65]. - The company has a strong R&D team with 334 registered patents and 208 pending patent applications as of December 31, 2023[54]. Corporate Governance and Compliance - The group has adopted a standard code of conduct for securities trading by directors and confirmed compliance during the reporting period[95]. - The Audit Committee, consisting of three members, has confirmed that the financial statements comply with applicable accounting principles and standards[97]. - The company has adhered to all corporate governance codes except for the separation of the roles of Chairman and CEO, which is held by Dr. Liang Dongke[96]. Future Plans and Strategic Initiatives - The company plans to utilize its R&D center to further enhance automation and scale production[65]. - The company is focused on investing in the medical device and biopharmaceutical sectors through various funds[87]. - The company has received approval from shareholders for the 2023 equity incentive plan, which includes the grant of 5,000,000 restricted shares to 17 incentive targets[59].