Investment Rating - The report assigns a "Buy" rating for Sisram Medical (复锐医疗科技) as a first-time coverage [6][7]. Core Views - Sisram Medical is positioned as a global leader in energy source devices, expanding its presence in the beauty and health ecosystem. The company has diversified its business into injection fillers, personal care, and digital dentistry, leveraging its strong R&D capabilities and market presence [6][18]. - The Chinese medical aesthetics market is experiencing stable growth, with the light medical aesthetics segment showing promising prospects. The company is well-positioned to capitalize on this trend through its established product lines and market strategies [6][45]. Financial Data and Profit Forecast - Total revenue projections for Sisram Medical are as follows: - 2023: $359.29 million (YoY +1.36%) - 2024E: $368.57 million (YoY +2.58%) - 2025E: $429.16 million (YoY +16.44%) - 2026E: $494.15 million (YoY +15.15%) [5][6] - Net profit forecasts are: - 2023: $31.50 million (YoY -21.59%) - 2024E: $30.07 million (YoY -4.53%) - 2025E: $39.09 million (YoY +29.99%) - 2026E: $47.16 million (YoY +20.64%) [5][6] - Earnings per share (EPS) estimates are: - 2023: $0.07 - 2024E: $0.06 - 2025E: $0.08 - 2026E: $0.10 [5][6] Business Expansion and Market Position - Sisram Medical has a solid foundation in energy source devices and a promising outlook for injection fillers. The company is expanding its business into digital dentistry and personal care, aiming to create a comprehensive beauty and health ecosystem [6][18]. - The company has established a strong direct sales network, with 78% of its revenue coming from direct sales in 2023, and is actively expanding its global reach [6][24]. Market Trends and Growth Potential - The light medical aesthetics market in China is projected to grow significantly, with a CAGR of 12.8% expected from 2024 to 2030. The non-surgical segment is anticipated to account for 65% of the market by 2030 [46]. - The energy source device market is expected to maintain rapid growth, driven by consumer demand for non-invasive procedures such as photorejuvenation and hair removal [6][45].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 Sisram Medical Ltd 復䢇醫療科技有限公司* （股份代號：1696） 更改香港主要營業地點的地址 復銳醫療科技有限公司*（「本公司」）董事會（「董事會」）謹此宣佈，由二零二五年一 月十日起，本公司於香港的主要營業地點的地址將由香港九龍觀塘道348號宏利廣 場5樓遷往： 主席 劉毅 （ 於 以 色 列 註 冊 成 立 的 有 限 公 司 ） 香港，二零二五年一月十七日 香港銅鑼灣希慎道33號利園一期19樓1917室 代表董事會 Sisram Medical Ltd 復銳醫療科技有限公司* 於本公告日期，本公司董事會包括執行董事劉毅先生及Lior Moshe DAYAN先 生；非執行董事吳以芳先生及馮蓉麗女士；獨立非執行董事方香生先生、陳志峰 先生、陳怡芳女士及廖啟宇先生。 * 僅供識別 ...

（股份代號：1696） 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 Sisram Medical Ltd 復䢇醫療科技有限公司* （ 於 以 色 列 註 冊 成 立 的 有 限 公 司 ） – 1 – 股東及投資者於買賣本公司證券時務請審慎行事。 代表董事會 Sisram Medical Ltd 復銳醫療科技有限公司* 主席 劉毅 香港，二零二四年十二月四日 自願公告 ALMA獲授醫療器械法規認證 本公告乃由復銳醫療科技有限公司（「本公司」）自願發佈。 本公司欣然宣佈，於二零二四年下半年度，Alma Lasers Ltd.（「Alma」，本公司主 要營運附屬公司）已分別就其品質管理體系及其兩款應用於皮膚科的醫療產品 Alma Harmony™及Alma Hybrid™獲得歐盟醫療器械法規(EU) 2017/745 （European Union Medical Device Regulation (EU) 2017/745）（「醫療器械法 規」） ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 Sisram Medical Ltd 復䢇醫療科技有限公司* （ 於 以 色 列 註 冊 成 立 的 有 限 公 司 ） （股份代號：1696） 自願公告 本公告乃由復銳醫療科技有限公司（「本公司」）自願發佈。 香港，二零二四年十一月五日 於本公告日期，本公司董事會成員包括執行董事劉毅先生及Lior Moshe DAYAN 先生；非執行董事吳以芳先生及馮蓉麗女士；獨立非執行董事方香生先生、陳志 峰先生、陳怡芳女士及廖啟宇先生。 * 僅供識別 本公司欣然宣佈推出其屢獲殊榮的美容平台Alma Harmony的全新版本（「新Alma Harmony」）。 新Alma Harmony採用現代化設計，並進行了大幅升級，為客戶提供更多的治療 選擇和簡單智能的使用體驗。其革新的患者個性化功能融合了五項最受歡迎的技 術及增強的能量，能夠提供全面的治療方案。 新Alma Harmony的設計重點在於提升效率、簡易性及易用 ...

Investment Rating - The investment rating for the company is upgraded to "Accumulate" with a target price of 3.75 HKD [1]. Core Views - The medical beauty business is steadily growing, with strong performance in the Asia-Pacific and European markets [1]. - The company reported a revenue of 1.209 billion HKD for H1 2024, a decrease of 1.4% year-on-year, and a net profit of 78 million HKD, down 42.05% year-on-year [1]. - The medical beauty segment generated 1.056 billion HKD in revenue, accounting for 88.5% of total revenue, with a year-on-year growth of 1.3% [1]. - The company is focusing on new product launches, which have been well received in the market, and is expanding its commercialization efforts in the Asia-Pacific region [1]. Business Segment Summary - **Medical Beauty Business**: Revenue reached 1.056 billion HKD, with a year-on-year growth of 1.3%. The revenue mainly comes from classic devices like Soprano, Harmony, Opus, Accent, and Hybrid [1]. - **Injectable Fillers**: Revenue was 31.949 million HKD, a decrease of 7.5% year-on-year, due to a shift in focus towards new product launches [1]. - **Dental Business**: Revenue was 19.952 million HKD, down 47.0% year-on-year, as this segment is still in the incubation phase and facing demand-side pressures [1]. - **Service and Other Businesses**: Revenue was 85.271 million HKD, a decrease of 14.1% year-on-year [1]. Regional Performance Summary - **North America**: Revenue was 474 million HKD, accounting for 39.7% of total revenue, down 15.7% year-on-year due to rising credit costs affecting customer purchasing decisions [1]. - **Asia-Pacific**: Revenue was 396 million HKD, accounting for 33.3% of total revenue, with a year-on-year growth of 15.5% driven by strong performance from Alma China [1]. - **Europe**: Revenue was 170 million HKD, accounting for 14.2% of total revenue, with a year-on-year growth of 10.0% due to the transition to direct sales in the UK market [1]. - **Middle East and Africa**: Revenue was 109 million HKD, accounting for 9.1% of total revenue, with a year-on-year growth of 10.9% [1]. - **Latin America**: Revenue was 44.661 million HKD, accounting for 3.7% of total revenue, down 20.3% year-on-year [1]. Profitability and Cost Structure - The company's gross margin for H1 2024 was 62.41%, an increase of 1.06 percentage points year-on-year, primarily due to a higher proportion of direct sales [1]. - The selling expense ratio increased by 2.59 percentage points year-on-year due to increased sales and marketing activities [1]. - The management expense ratio increased by 1.49 percentage points year-on-year due to expenses related to new office operations [1]. - R&D expense ratio remained stable year-on-year [1]. Future Outlook - The company expects revenues for 2024-2026 to be 2.569 billion HKD, 3.002 billion HKD, and 3.505 billion HKD respectively, with net profits of 215 million HKD, 280 million HKD, and 339 million HKD respectively [1].

Global Expansion and Market Development - The company has expanded its global presence to over 100 countries and regions through a direct sales strategy over the past five years[3]. - The company is focusing on local market development in China, aiming to align its product offerings with local consumer needs and enhance its operational capabilities[4]. - The company aims to strengthen its leadership in key markets like Asia-Pacific and North America while expanding its beauty health ecosystem[9]. - The company is actively evaluating additional direct sales office opportunities in strategic markets within the Asia-Pacific region[18]. - The company established new sales offices in the UK, UAE, and Japan, and acquired 60% of a Chinese distributor, significantly strengthening its infrastructure for future growth[18]. Product Development and Innovation - The company aims to establish a product matrix that meets high demand and high-value needs, focusing on enhancing market penetration and customer coverage[3]. - The company launched the innovative multi-mode anti-aging platform Alma Harmony™ and the intelligent skin analysis solution Alma IQ™ in the U.S., which have received high market recognition[6]. - The Soprano Titanium™ special edition was launched globally, enhancing the company's leading position in the hair removal market with over 20% efficiency improvement[6]. - The company launched significant new products, including Soprano Titanium™ and Alma Harmony™, along with the innovative Alma IQ™ skin analysis solution[7]. - The company’s Alma Harmony™ product received FDA approval for over 130 indications, showcasing its innovative capabilities in addressing various skin conditions[15]. Financial Performance - Total revenue for the first half of 2024 was $168.73 million, a slight decrease from $171.62 million in the same period of 2023[11]. - Gross profit for the first half of 2024 was $105.31 million, with a gross margin of 62.4%, up from 61.4% in the previous year[11]. - The net profit margin decreased to 7.8% in the first half of 2024 from 10.9% in the same period of 2023[11]. - Adjusted net profit was $16.7 million, a decrease of 19.4% compared to the same period in 2023, with an adjusted net profit margin of 9.9%[14]. - Revenue decreased from $171.6 million to $168.7 million, a decline of 1.7% year-over-year, primarily due to challenging economic conditions in North America, offset by double-digit revenue growth in Asia-Pacific, Europe, and the Middle East and Africa[26]. Strategic Partnerships and Collaborations - The company is leveraging strategic partnerships to expand its product pipeline and enhance its competitive advantage in the non-invasive and minimally invasive medical aesthetics sector[5]. - Strategic partnerships established for high-end products, including exclusive distribution rights for Profhilo® and DAXXIFY® in key markets[8]. - The company established a strategic partnership with Prollenium® to distribute the Revanesse® dermal filler series in key markets including Germany, Austria, Switzerland, Australia, and New Zealand[13]. - The strategic partnership with Prollenium® aims to expand the injection filling product portfolio, enhancing the effectiveness and longevity of various aesthetic treatments[20]. Research and Development - Research and development expenses amounted to $8.1 million, with three new products launched during the reporting period[15]. - The company initiated two additional clinical studies and ten peer-reviewed studies in the fields of aesthetics, dermatology, and plastic surgery[16]. - The company achieved significant progress in intellectual property, including the application for two new patents in the fields of radiofrequency and ultrasound[16]. - Research and development expenses decreased by 11.9% to $8.1 million, indicating strict cost control measures[36]. Cash Flow and Financial Position - Cash flow from operating activities was $4.0 million, significantly lower than $8.0 million in the same period last year, representing a 50.5% decline[49]. - Cash flow from investing activities was $9.2 million, compared to an outflow of $24.2 million in the previous year, marking a 138.1% increase[49]. - Total cash and cash equivalents at the end of the period increased by 35.1% to $70.1 million, up from $51.9 million[49]. - The company maintained a strong cash position with cash and cash equivalents exceeding total debt[43]. Corporate Governance and Compliance - The company is committed to high standards of corporate governance and has adhered to all relevant codes during the reporting period[130]. - The audit committee reviewed the unaudited interim results for the six months ending June 30, 2024[131]. - The company has appointed new independent non-executive directors, enhancing its governance structure[129]. Market Outlook and Future Plans - The company anticipates strong performance in revenue and net income for the second half of 2024, driven by year-over-year growth in new order volume[23]. - The company expects revenue guidance for the second half of 2024 to be between HKD 1.5 billion and HKD 1.7 billion, indicating a potential growth of 25% to 42% compared to the first half[135]. - New product launches are anticipated to contribute an additional HKD 300 million in revenue by the end of 2024[136]. - Market expansion plans include entering two new countries in the Asia-Pacific region by Q4 2024, targeting a market size of approximately HKD 500 million[136].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The global medical aesthetics industry is expanding, with non-surgical segments growing faster than surgical ones. The industry features high entry barriers and significant profit margins, particularly in the upstream sector [3][4]. - The company is positioned as a leader in energy-based medical aesthetics, with a diverse product portfolio and a strong focus on innovation and market expansion [4][6]. - Revenue forecasts for the company indicate growth from $370 million in 2024 to $473 million by 2026, with a projected net profit increase from $34 million to $43 million in the same period [6][8]. Summary by Sections Industry Overview - The medical aesthetics industry combines medical and consumer attributes, influenced by disposable income and consumer preferences. The upstream sector has a gross margin of 80%-95%, while the downstream customer acquisition platforms have a margin of about 60%-80% [3][4]. - The energy-based aesthetics market is projected to grow steadily, with a significant portion of revenue coming from skin rejuvenation treatments [3][4]. Company Overview - The company has established a "big medical aesthetics" ecosystem, focusing on energy-based aesthetics, injection fillers, digital dentistry, and personal care. In 2023, its energy-based aesthetics revenue reached $320 million, with a year-on-year growth of 3.2% [4][6]. - The injection filler segment, which the company entered in 2019, generated over $10 million in revenue in 2023, reflecting a 9.3% increase year-on-year [4][6]. Financial Performance - The company is expected to achieve revenues of $370 million, $421 million, and $473 million from 2024 to 2026, with corresponding net profits of $34 million, $39 million, and $43 million [6][8]. - The company's valuation metrics indicate it is undervalued compared to peers, with a projected P/E ratio of 5.7X for 2024, decreasing to 4.5X by 2026 [6][8]. Market Positioning - The company has a strong market presence in energy-based aesthetics, holding a 4.4% share of the global market in 2016, ranking fifth. It has launched approximately 30 products in this segment since 2006 [4][6]. - The company is actively expanding its direct sales channels globally, with a significant focus on the Chinese market, where it has formed a joint venture to enhance its presence [6][4].

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported a slight revenue decrease in H1 2024, with improved gross margin, increased direct sales, and a decline in adjusted net profit [Financial Highlights](index=1&type=section&id=Financial%20Highlights) For the six months ended June 30, 2024, revenue slightly decreased by **1.7%** to **USD 168.7 million**, gross margin improved to **62.4%**, direct sales share rose to **86.1%**, and adjusted net profit declined by **19.4%** to **USD 16.7 million**, with no interim dividend declared Key Financial Indicators for H1 2024 | Indicator | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | USD 168.7 million | USD 171.6 million | -1.7% | | Gross Margin | 62.4% | 61.4% | +1.0 percentage points | | Adjusted Net Profit | USD 16.7 million | USD 20.7 million | -19.4% | | Direct Sales Revenue Share | 86.1% | 72.1% | +14.0 percentage points | - The Board resolved not to declare any interim dividend for the six months ended June 30, 2024[1](index=1&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents the interim condensed consolidated financial statements, including profit or loss, comprehensive income, and financial position [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) In H1 2024, revenue slightly decreased by **1.7%** to **USD 168.7 million**, while profit before tax and profit for the period significantly declined due to increased expenses Key Profit or Loss Data (For the six months ended June 30) | Item (USD thousand) | 2024 (Unaudited) | 2023 (Unaudited) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 168,730 | 171,621 | -1.7% | | Gross Profit | 105,311 | 105,298 | +0.01% | | Profit Before Tax | 14,723 | 20,732 | -29.0% | | Profit for the Period | 13,202 | 18,783 | -29.7% | | Profit Attributable to Owners of the Parent | 10,952 | 18,899 | -42.0% | | Basic Earnings Per Share (US cents) | 2.34 | 4.04 | -42.1% | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for the period significantly decreased to **USD 11.84 million**, primarily due to lower profit for the period and a negative shift in other comprehensive income from exchange differences Key Comprehensive Income Data (For the six months ended June 30) | Item (USD thousand) | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Profit for the Period | 13,202 | 18,783 | | Other Comprehensive (Loss)/Income, Net | (1,360) | 15 | | **Total Comprehensive Income for the Period** | **11,842** | **18,857** | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, total assets were **USD 626.8 million** and net assets were **USD 472.5 million**, remaining stable compared to year-end 2023, despite increases in current assets and liabilities Key Financial Position Data | Item (USD thousand) | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | Total Non-Current Assets | 357,420 | 356,153 | | Total Current Assets | 269,388 | 257,349 | | Total Current Liabilities | 102,843 | 88,250 | | Total Non-Current Liabilities | 51,434 | 55,727 | | **Net Assets** | **472,531** | **469,525** | [Notes to the Interim Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section details the basis of financial statement preparation, accounting policy changes, and provides breakdowns for revenue, tax, dividends, earnings per share, balance sheet items, and commitments [Revenue](index=7&type=section&id=4.%20Revenue%2C%20other%20income%20and%20gains) Total revenue for the period was **USD 168.7 million**, a slight **1.7%** decrease, with product sales dominating, and strong growth in Asia Pacific offsetting a decline in North America Revenue by Type of Goods or Services (USD thousand) | Type | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Product Sales | 156,669 | 157,587 | | Services Rendered | 12,061 | 14,034 | | **Total** | **168,730** | **171,621** | Revenue by Geographical Segment (USD thousand) | Region | H1 2024 | H1 2023 | | :--- | :--- | :--- | | North America | 67,023 | 79,502 | | Asia Pacific | 55,953 | 48,447 | | Europe | 24,029 | 21,851 | | Middle East & Africa | 15,408 | 13,893 | | Latin America | 6,317 | 7,928 | | **Total** | **168,730** | **171,621** | [Income Tax](index=9&type=section&id=7.%20Income%20Tax) The Group's effective tax rate for the period was approximately **10.3%**, with key operating subsidiary Alma Lasers Ltd. benefiting from a **6%** preferential tax rate in Israel as a 'Special Preferred Technology Enterprise' - Key operating subsidiary Alma Lasers Ltd. enjoys a **6%** preferential effective tax rate in Israel as a 'Special Preferred Technology Enterprise'[14](index=14&type=chunk)[15](index=15&type=chunk) - The Group's corporate income tax rates in other major regions are **21%** in the US, approximately **32%** (including trade tax) in Germany, and **25%** in Mainland China[16](index=16&type=chunk)[17](index=17&type=chunk)[21](index=21&type=chunk) [Dividends](index=11&type=section&id=8.%20Dividends) The Board resolved not to declare any interim dividend for the six months ended June 30, 2024 - The Board resolved not to declare any interim dividend for the six months ended June 30, 2024 (six months ended June 30, 2023: nil)[24](index=24&type=chunk) [Earnings per share attributable to ordinary equity holders of the parent](index=11&type=section&id=9.%20Earnings%20per%20share%20attributable%20to%20ordinary%20equity%20holders%20of%20the%20parent) Basic earnings per share for the period was **2.34 US cents**, a significant decrease from **4.04 US cents** in the prior year, primarily due to lower profit attributable to owners of the parent Earnings per Share Calculation | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Holders of the Parent (USD thousand) | 10,952 | 18,899 | | Weighted Average Number of Ordinary Shares in Issue (shares) | 468,343,092 | 467,292,609 | | **Basic Earnings Per Share (US cents)** | **2.34** | **4.04** | [Trade receivables & 12. Trade payables](index=12&type=section&id=11.%20Trade%20receivables%20%26%2012.%20Trade%20payables) Net trade receivables increased to **USD 109.9 million** as of period-end, with **35.8%** over three months old, while trade payables significantly rose to **USD 17.11 million**, primarily due within three months Trade Receivables Aging Analysis (USD thousand) | Aging | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Within 1 month | 63,684 | 51,522 | | 1 to 3 months | 6,875 | 8,896 | | Over 3 months | 39,388 | 35,947 | | **Total** | **109,947** | **96,365** | Trade Payables Aging Analysis (USD thousand) | Aging | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Within 1 month | 6,041 | 5,365 | | 1 to 3 months | 9,418 | 630 | | Over 3 months | 1,648 | 2,003 | | **Total** | **17,107** | **7,998** | [Commitments](index=13&type=section&id=14.%20Commitments) The Group secured commercialization rights for Daxxify in China, involving potential future milestone payments, and had no significant capital commitments as of the reporting period end - The Group may be required to pay **USD 15 million** in regulatory milestone payments (upon NMPA approval in China) and up to **USD 172.5 million** in sales milestone payments for the Daxxify product sub-licensing agreement[33](index=33&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's business performance, strategic initiatives, financial results, liquidity, and risk management for the reporting period [Business Review](index=14&type=section&id=1.%20Business%20Review) In H1 2024, total revenue slightly decreased, but the company's direct sales strategy significantly improved gross margin, while strategic investments in new products and partnerships yielded positive market responses [Business Review of the First Half of 2024](index=15&type=section&id=2.%20Business%20Review%20of%20the%20First%20Half%20of%202024) Total revenue for the period decreased by **1.7%** to **USD 168.7 million**, primarily due to the North American market, yet successful direct sales transformation boosted gross margin to **62.4%**, despite a **19.4%** decline in adjusted net profit to **USD 16.7 million** H1 2024 Performance Summary | Indicator | Amount | YoY Change | | :--- | :--- | :--- | | Revenue | USD 168.7 million | -1.7% | | Gross Profit | USD 105.3 million | 0% | | Gross Margin | 62.4% | +1.0 percentage points | | Profit Before Tax | USD 14.7 million | -29.0% | | Adjusted Net Profit | USD 16.7 million | -19.4% | - Successful execution of the direct sales strategy increased the proportion of direct sales revenue from **72.1%** to **86.1%** compared to the prior year, which was the primary driver for the gross margin increase[36](index=36&type=chunk) [R&D](index=16&type=section&id=R%26D) R&D expenditure was **USD 8.1 million**, leading to the successful launch of three new products and significant progress in intellectual property and EU MDR certification - R&D expenditure amounted to **USD 8.1 million**[39](index=39&type=chunk) - Three new products, Alma Harmony™, Soprano Titanium™ Special Edition, and Alma IQ™, were successfully launched with high market acceptance[39](index=39&type=chunk) - The quality control system successfully passed the audit and complied with the new EU Medical Device Regulation (MDR) requirements, marking a significant milestone[40](index=40&type=chunk) [Sales & Marketing](index=17&type=section&id=Sales%20%26%20Marketing) The company expanded its direct sales network globally through new offices and acquisitions, transitioned to a B2B2C model, and enhanced brand influence via a global campaign reaching over **300 million** people - Expansion of the direct sales network through new offices (UK, UAE, Japan) and acquisitions (China) aligns perfectly with the strategy to increase direct sales[41](index=41&type=chunk) - The business model is shifting from product-driven (B2B) to clinic-centric (B2B2C), adding high-value products to create an end-to-end customer experience[41](index=41&type=chunk) - The global brand campaign with Hollywood star Kate Hudson has cumulatively reached over **300 million** people worldwide, with over **350,000** social media engagements[42](index=42&type=chunk) [Business Development](index=18&type=section&id=Business%20Development) The company established a strategic partnership with Prollenium® for dermal filler distribution, secured approval for PROFHILO® in Hainan, and completed the acquisition of a Chinese distributor, exceeding first-year performance targets - A strategic partnership was established with Canadian Prollenium® to expand the injectable filler product portfolio[43](index=43&type=chunk) - PROFHILO® (Pufiluo), a new generation hyaluronic acid complex, was approved as a licensed medical device in Hainan in April 2024[43](index=43&type=chunk) [Operations](index=18&type=section&id=Operations) The Group improved service processes and operational efficiency, vertically integrated manufacturing for key product lines to boost gross margin, and maintains normal production in Israel with sufficient global inventory - Manufacturing processes for leading product lines (e.g., Soprano) have been vertically integrated to further expand the company's profit margins[44](index=44&type=chunk) - As of the announcement date, the company's production lines in Israel are operating normally, and global inventory levels are sufficient to meet customer demand[44](index=44&type=chunk) [Outlook for the Second Half of 2024](index=19&type=section&id=3.%20Outlook%20for%20the%20Second%20Half%20of%202024) The company forecasts stronger revenue and net income in H2 2024 compared to H1, driven by increased new orders, with strategic priorities including market consolidation, ecosystem expansion, Daxxify launch preparation, and new product approvals - The company forecasts stronger performance in terms of revenue and net income in the second half of 2024 compared to the first half, primarily due to year-on-year growth in new orders[45](index=45&type=chunk) - H2 plans include preparing for Daxxify® commercialization in Mainland China, advancing regulatory approvals for energy-based aesthetic medical devices and injectable fillers, integrating Alma China into core operations, and exploring new direct sales offices in Asia Pacific[45](index=45&type=chunk) - The company will continue to strengthen R&D capabilities, product portfolio, and distribution channels through M&A initiatives, leveraging Fosun Pharma's resources in China to increase market penetration[46](index=46&type=chunk) [Financial Review](index=20&type=section&id=4.%20Financial%20Review) This section provides a detailed analysis of H1 2024 financial performance, highlighting a slight revenue decrease, improved gross margin, and a decline in profit for the period and adjusted net profit due to increased operating expenses [Revenue](index=20&type=section&id=A.%20Revenue) Total revenue was **USD 168.7 million**, a **1.7%** decrease, with core medical aesthetics revenue growing by **1.3%** to **USD 149.3 million**, while North American revenue declined by **15.7%** due to high interest rates, partially offset by strong growth in Asia Pacific (**+15.5%**) and Europe (**+10.0%**) Revenue by Major Product Line (USD thousand) | Product Line | H1 2024 | Share of Total Revenue % | H1 2023 | Share of Total Revenue % | YoY Change % | | :--- | :--- | :--- | :--- | :--- | :--- | | Medical Aesthetics | 149,328 | 88.5% | 147,380 | 85.9% | +1.3% | | Dental | 2,822 | 1.7% | 5,320 | 3.1% | -47.0% | | Injectables | 4,519 | 2.7% | 4,887 | 2.8% | -7.5% | | Services and Others | 12,061 | 7.1% | 14,034 | 8.2% | -14.1% | | **Total** | **168,730** | **100.0%** | **171,621** | **100.0%** | **-1.7%** | Revenue by Geographical Segment (USD thousand) | Region | H1 2024 | Share of Total Revenue % | H1 2023 | Share of Total Revenue % | YoY Change % | | :--- | :--- | :--- | :--- | :--- | :--- | | North America | 67,023 | 39.7% | 79,502 | 46.3% | -15.7% | | Asia Pacific | 55,953 | 33.3% | 48,447 | 28.2% | +15.5% | | Europe | 24,029 | 14.2% | 21,851 | 12.8% | +10.0% | | Middle East & Africa | 15,408 | 9.1% | 13,893 | 8.1% | +10.9% | | Latin America | 6,317 | 3.7% | 7,928 | 4.6% | -20.3% | | **Total** | **168,730** | **100.0%** | **171,621** | **100.0%** | **-1.7%** | [Gross profit and gross profit margin](index=22&type=section&id=B.%20Gross%20profit%20and%20gross%20profit%20margin) Gross profit remained stable at **USD 105.3 million**, while gross profit margin increased from **61.4%** to **62.4%**, primarily driven by the higher proportion of direct sales, which yield better margins - Gross profit remained stable at **USD 105.3 million** compared to the same period in 2023[53](index=53&type=chunk) - Gross profit margin increased from **61.4%** in the same period of 2023 to **62.4%** in the reporting period, primarily attributable to the higher proportion of direct sales, which have higher profit margins than distribution[53](index=53&type=chunk) [Selling and distribution expenses & D. Administrative expenses & E. R&D expenses](index=22&type=section&id=C.%20Selling%20and%20distribution%20expenses%20%26%20D.%20Administrative%20expenses%20%26%20E.%20R%26D%20expenses) Selling and distribution expenses increased by **5.6%** to **USD 63.2 million**, administrative expenses rose by **16.2%** to **USD 16.3 million** due to new office operations, while R&D expenses decreased by **11.9%** to **USD 8.1 million** due to strict cost control Operating Expenses Overview (USD thousand) | Expense Item | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 63,233 | 59,855 | +5.6% | | Administrative Expenses | 16,297 | 14,028 | +16.2% | | R&D Expenses | 8,069 | 9,159 | -11.9% | [Profit for the period & I. Adjusted net profit and adjusted net profit margin](index=24&type=section&id=H.%20Profit%20for%20the%20period%20%26%20I.%20Adjusted%20net%20profit%20and%20adjusted%20net%20profit%20margin) Profit for the period decreased by **29.7%** to **USD 13.2 million** with a net profit margin of **7.8%** due to increased expenses, while adjusted net profit (excluding non-operating items) was **USD 16.7 million**, a **19.4%** decrease, with an adjusted net profit margin of **9.9%** Adjusted Net Profit Reconciliation (USD thousand) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | **Profit for the Period** | **13,202** | **18,783** | | Add: Amortization of Intangible Assets Related to Acquisitions | 3,877 | 2,602 | | Add: Restricted Share Unit Expenses | 405 | 825 | | Less: Deferred Tax Arising from Other Intangible Assets | (826) | (529) | | Less: One-off VAT Adjustment | – | (1,010) | | **Adjusted Net Profit** | **16,658** | **20,671** | | **Adjusted Net Profit Margin** | **9.9%** | **12.0%** | [Indebtedness Structure, Liquidity and Capital Resources](index=25&type=section&id=5.%20Indebtedness%20Structure%2C%20Liquidity%20and%20Capital%20Resources) The Group maintains a robust financial position with no gearing ratio as cash and cash equivalents exceed total debt, an interest coverage ratio of **13.5x**, and period-end cash and bank balances of **USD 70.2 million** [Gearing ratio & F. Maturity profile of outstanding debt](index=25&type=section&id=B.%20Gearing%20ratio%20%26%20F.%20Maturity%20profile%20of%20outstanding%20debt) As of the reporting period end, the Group had no gearing ratio as cash and cash equivalents exceeded total debt, with total interest-bearing bank and other borrowings of **USD 5.4 million**, all fixed-rate and due within one year at **4.10%** - The Group presents no gearing ratio as cash and cash equivalents exceed total debt[63](index=63&type=chunk) - As of June 30, 2024, total interest-bearing bank and other borrowings amounted to **USD 5.4 million**, all fixed-rate and due within one year[66](index=66&type=chunk)[67](index=67&type=chunk) [Cash Flow](index=27&type=section&id=6.%20Cash%20Flow) Net cash inflow from operating activities was **USD 4.0 million**, a **50.5%** decrease, while net cash inflow from investing activities was **USD 9.2 million** (compared to a net outflow of **USD 24.2 million** in the prior year), resulting in period-end cash and bank balances of **USD 70.2 million** Cash Flow Statement Summary (USD thousand) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 3,961 | 8,008 | | Net Cash Flow from/(Used in) Investing Activities | 9,226 | (24,227) | | Net Cash Flow Used in Financing Activities | (2,766) | (4,954) | | **Cash and Bank Balances at End of Period** | **70,246** | **62,579** | [Risk Management](index=30&type=section&id=12.%20Risk%20Management) The Group primarily faces financial risks from foreign exchange and interest rate fluctuations, managed through hedging structures, forward contracts, and a strategy of utilizing both fixed and floating rate debt - The primary risk is foreign exchange rate fluctuation, as the company's functional currency is USD, but revenue is generated in multiple currencies (especially EUR), while costs are primarily incurred in Israeli New Shekels; the company manages this through forward contracts and other hedging arrangements[80](index=80&type=chunk) - The Group's exposure to interest rate fluctuation risk primarily relates to floating rate debt obligations, managed by employing a strategy of utilizing both fixed and floating rate debt[81](index=81&type=chunk) [Employees and Remuneration Policies](index=31&type=section&id=13.%20Employees%20and%20Remuneration%20Policies) As of June 30, 2024, the Group had **1,026** employees, a **5.0%** decrease from year-end 2023, with sales and marketing personnel comprising the largest segment, and remuneration policies including basic salary and performance-linked bonuses Number of Employees by Function (As of June 30, 2024) | Function | Number of Employees | | :--- | :--- | | Operations | 270 | | R&D | 88 | | Sales and Marketing | 520 | | General and Administrative | 148 | | **Total** | **1,026** | - Compared to December 31, 2023, the number of employees at the end of the reporting period decreased by **5.0%**, primarily due to the Group's efforts to streamline operations[82](index=82&type=chunk)

Revenue Growth - The company's revenue increased from $354.5 million to $359.3 million, representing a 1.4% year-over-year growth, primarily driven by the growth in revenue from newly established direct sales offices in North America and China[4]. - Total revenue for the reporting period reached $359.3 million, an increase of 1.4% compared to 2022[13]. - Revenue for the year was $359.3 million, a slight increase from $354.5 million in the previous year[48]. - Total revenue for the year 2023 was $359,292 thousand, a slight increase from $354,480 thousand in 2022, representing a growth of approximately 0.23%[162]. Profitability - The company reported a decrease in net profit to $32.9 million, down 17.9% from the previous year, with a net profit margin of 9.2%[4]. - The group achieved a profit before tax of $37.1 million, representing a decrease of 16.1% compared to the previous year[41]. - The adjusted net profit for the year was $37.5 million, down 22.9% year-on-year, with an adjusted net profit margin of 10.4%[41]. - Net profit for the year 2023 was $32,898 thousand, down from $40,080 thousand in 2022, reflecting a decrease of approximately 18.0%[164]. Gross Profit and Margin - Gross profit margin improved to 61.1%, up from 57% in the previous year, reflecting an 8.6% increase in gross profit to $219.5 million[4]. - Gross profit rose from $202.2 million in 2022 to $219.5 million in 2023, an increase of $17.3 million, with a gross margin of 61.1%, up from 57.0% in 2022[13]. - Gross margin improved to 61.1%, an increase of 4.1 percentage points from 57.0% in the same period last year[72]. - Gross profit increased by 8.6% from $202.2 million in 2022 to $219.5 million in 2023[119]. Market Expansion and Strategic Initiatives - The establishment of a new direct sales office in Japan is a strategic move to enhance the company's presence in the Asian market, focusing on beauty and health products[1]. - A new direct sales office was established in Dubai, aimed at becoming a trade hub for the Middle East market, starting with energy-based devices and expanding to other beauty health ecosystem units[28]. - The company has established direct sales offices in key strategic markets to simplify the supply chain and enhance product average selling prices[88]. - The acquisition of PhotonMed HK's distribution business is expected to strengthen the company's market position and brand recognition in the Asia-Pacific region[7][8]. Product Development and Innovation - The company is actively developing new products, including injectable fillers, with several registration applications submitted to the National Medical Products Administration in China[9]. - The company launched the VorFat system, a new fat tissue micro-particle technology, which received FDA approval, enhancing the product portfolio and market competitiveness[16]. - The company launched three new products in new regions during the reporting period, including the Soprano Titanium™ platform in North America[41]. - The company is focusing on clinical and pre-clinical research, with 20 studies ongoing in various fields including aesthetics and dermatology[16]. Financial Health and Cash Flow - Cash flow from operating activities increased by 99.4% to $43.9 million compared to the previous year[41]. - Cash and bank balances decreased to $70.6 million in 2023 from $81.5 million in 2022[59]. - The total liabilities increased to $144.0 million in 2023, up from $123.4 million in 2022, indicating a rise of 16.5%[59]. Regional Performance - The Asia-Pacific region saw a revenue increase of 11.8%, while North America experienced a 9.2% increase during the reporting period[13]. - North America revenue increased by 9.2% from $143.7 million in 2022 to $156.9 million in 2023, primarily due to the success of the hair growth division[114]. - Europe revenue decreased by 14.0% from $58.3 million in 2022 to $50.2 million in 2023, attributed to challenging macroeconomic conditions and the impact of the Russia-Ukraine conflict[115]. - Revenue from the Asia-Pacific region increased by 11.8% from $98.1 million in 2022 to $109.7 million in 2023, driven by successful operations in direct sales offices in China, India, South Korea, and Australia[97]. Cost Management - Total sales cost decreased by 8.2% from $152.3 million in 2022 to $139.8 million in 2023, improving gross margin through effective cost control[118]. - Sales and distribution expenses rose by 25.7% from $99.7 million in 2022 to $125.3 million in 2023, mainly due to costs associated with new direct sales offices and brand ambassador programs[120]. Research and Development - R&D expenditure for the year was $18.0 million, reflecting the company's commitment to innovation[41]. - Research and development expenses remained stable at $18,029 thousand in 2023, slightly up from $18,023 thousand in 2022[162]. Strategic Focus for Future - The company plans to focus on consolidating its leadership in key markets such as Asia-Pacific and North America in 2024[72]. - The company aims to diversify its business lines and expand its ecosystem in the beauty and health sector[53]. - The company will continue to focus on mergers and acquisitions to enhance R&D capabilities and product offerings[3.7].

Revenue and Profitability - For the year ended December 31, 2023, revenue was $359.3 million, an increase of 1.4% compared to $354.5 million in 2022[10]. - Total revenue for the year ended December 31, 2023, was $359.292 million, a slight increase from $354.480 million in 2022, representing a growth of approximately 1.0%[65]. - Revenue breakdown by region shows North America at $156.891 million, up from $143.664 million in 2022, reflecting a growth of about 9.0%[65]. - The Asia-Pacific region generated $109.685 million, an increase from $98.069 million, indicating a growth of approximately 11.0%[65]. - Revenue from product sales was $336,089 thousand in 2023, compared to $334,653 thousand in 2022, indicating a growth of about 0.43%[105]. - Service revenue increased to $23,203 thousand in 2023 from $19,827 thousand in 2022, reflecting a growth of approximately 16.93%[105]. - The total comprehensive income for the year was $32.9 million, down from $40.1 million in the previous year[7]. - The net profit for the year was $32.9 million, down 17.9% from the previous year's profit[140]. - The pre-tax profit for 2023 was $139,767 thousand, down from $152,254 thousand in 2022, a decrease of about 8.19%[111]. - Adjusted net profit for the reporting period was $37.5 million, a decrease of 22.9% year-over-year, with an adjusted net profit margin of 10.4%[195]. Cash Flow and Financial Position - Net cash flow from operating activities was $43.9 million, a significant increase of 99.4% compared to the previous year[10]. - The company's total assets less current liabilities increased to $525.3 million from $475.5 million in 2022[14]. - Total non-current assets increased to $345.67 million in 2023 from $297.79 million in 2022, indicating a growth of approximately 16.1%[83]. - Trade receivables at the end of 2023 amounted to $98.7 million, compared to $95.6 million in 2022[130]. - The company has sufficient funds to meet future business needs and maintain operational flexibility[140]. Dividends and Shareholder Returns - The company announced a final dividend of HK$0.158 per share (tax included) for the year ended December 31, 2023[10]. - The company declared a final dividend of HKD 0.158 per share for the year ended December 31, 2023[54]. Governance and Compliance - The company has complied with all applicable principles and code provisions of the Corporate Governance Code during the reporting period[21]. - The audit committee reviewed the annual performance for 2023 and the financial statements prepared in accordance with international financial reporting standards[33]. - The company has adopted a trading policy for directors and the CEO, ensuring compliance with relevant regulations[30]. - The board of directors includes both executive and independent non-executive members, highlighting a diverse governance structure[66]. Research and Development - Research and development expenses for 2023 were $18,029 thousand, slightly up from $18,023 thousand in 2022[91]. - The company is focused on strategic investments, including clinical research and the development of innovative solutions in energy-based medical aesthetics[137]. - The company conducted 20 clinical and preclinical studies during the reporting period, covering various fields including aesthetics and gynecology[198]. Product Development and Market Expansion - The Soprano Titanium™ hair removal platform was introduced to the North American market after receiving FDA approval[175]. - The Alma Veil™ was launched in North America, targeting various skin conditions and expanding the customer base[176]. - The company received FDA approval for the VorFat system, enhancing its product portfolio and competitive position in the global medical aesthetics market[178]. - The second-generation LMNT O2 medical-grade home beauty device was launched, supporting regional growth strategies[179]. - The company established new offices in Japan and China in 2023, advancing direct sales subsidiaries in the UK and UAE[179]. - The company launched three new products in new regions during the reporting period, including the Opus platform for non-invasive skin tightening and rejuvenation[197]. - The company has received multiple product registration applications from the National Medical Products Administration in China, including the Profhilo® injectable filler[184]. Strategic Initiatives - The company is focused on expanding its global sales channels, with a total allocation of $61 million for this purpose[50]. - A new direct sales office was established in Dubai, aimed at becoming a trade hub for the Middle East market, starting with energy source equipment and expanding into personal care and aesthetic dentistry[186]. - The company is actively pursuing mergers and acquisitions to enhance its R&D capabilities, product portfolio, and distribution channels[191]. - The company plans to strengthen its market leadership in strategic markets (Asia-Pacific and the U.S.) through deeper market penetration and closer collaboration with partners and customers[190].