Investment Rating - The investment rating for the company is "Outperform the Market" [6][4]. Core Insights - In 2024, the company achieved a revenue of 1.346 billion (up 23.1%) and a net profit of 274 million (up 50.4%), driven by increased demand for orthopedic products and effective cost management [10][4]. - The company is focusing on expanding its overseas market presence and has seen significant growth in its international revenue, which reached 274 million (up 20.8%), accounting for 20.4% of total revenue [15][4]. - The company is leveraging its 3D printing technology and digital orthopedic solutions to create a comprehensive ecosystem, enhancing its competitive edge in the market [24][23]. Revenue and Profitability - The revenue from hip joint implants was 729 million (up 23.5%), and knee joint implants generated 405 million (up 30.1%) in 2024, indicating a strong recovery in surgical volumes [15][2]. - The gross profit margin for 2024 was 60.0%, with a net profit margin of 20.3%, reflecting effective cost control measures [20][3]. - The company has maintained a focus on research and development, with a R&D expense ratio of 10.3%, while also managing other expenses effectively [20][3]. Financial Forecasts - The company has slightly adjusted its profit forecasts for 2025-2026, now expecting net profits of 334 million, 404 million, and 484 million for 2025, 2026, and 2027 respectively, with growth rates of 21.9%, 20.8%, and 20.0% [4][5]. - The current price-to-earnings (PE) ratios are projected to be 19.2, 15.9, and 13.2 for 2025, 2026, and 2027 respectively, indicating a favorable valuation compared to historical performance [4][5]. Market Position and Strategy - The company is recognized as a leader in the orthopedic market, being the first in China to commercialize 3D printing technology for joint implants, which strengthens its market position [24][4]. - The strategic focus on digital orthopedic solutions and international expansion is expected to drive future growth, with the company successfully entering new markets [24][15].

Financial Performance - The company achieved a revenue of approximately RMB 1,346.4 million for the fiscal year 2024, representing a significant increase of 23.1% compared to RMB 1,093.9 million in 2023[7]. - Net profit for the year reached RMB 273.9 million, marking a substantial growth of 50.4% from RMB 182.1 million in the previous year[7]. - The basic earnings per share increased to RMB 0.25, up from RMB 0.16 in 2023, while diluted earnings per share rose to RMB 0.24 from RMB 0.16[7]. - Gross profit for 2024 was RMB 808.2 million, an increase of 19.8% from RMB 674.5 million in the previous year[41]. - The company reported a profit of approximately RMB 7,400,000 in charitable donations for the year ending December 31, 2024[107]. - The proposed final dividend for the year ending December 31, 2024, is HKD 0.072 per share, an increase from HKD 0.045 in 2023[108]. Market Expansion and Strategy - The company successfully expanded its product offerings in the domestic joint market, securing a sufficient number of bids under the centralized procurement policy[12]. - Internationally, the company leveraged its dual-brand strategy to significantly grow in both mature and emerging markets, including Europe and Southeast Asia[12]. - The company is actively expanding its overseas business, enhancing its brand image through initiatives like the "Silk Road Health International Exchange Project" in 2024[17]. - The company aims to enhance the quality and competitiveness of domestic products while gradually replacing imported products in the orthopedic market[12]. - The implementation of volume-based procurement for joint products accelerated import substitution, contributing to significant growth in product sales[96]. Product Development and Innovation - The iCOS digital orthopedic platform has been established, integrating 3D printing technology and providing personalized surgical solutions[20]. - The group launched the first domestic joint visualization intelligent auxiliary system (VTS) in 2022, improving surgical precision and recovery time[19]. - The group’s self-developed surgical robot for hip joint surgery was approved for market launch in 2023, with a knee joint surgical robot expected to be approved in 2024[19]. - The company launched a series of innovative products in the spine field, including 3D printed self-stabilizing fusion devices, addressing key pain points in spinal surgery[33]. - The VTS visualization intelligent navigation system achieved a milestone of 1,000 units sold by December 2024, after 8 years of development, serving over 30 hospitals and 100 doctors globally[34]. Operational Efficiency and Cost Control - The company maintained a strong focus on cost control, contributing to the net profit growth alongside revenue increases[7]. - Sales and distribution expenses increased by approximately 10.1% to RMB 240.9 million from RMB 218.8 million in 2023, primarily due to increased marketing activities[53]. - Research and development expenses rose by approximately 1.5% to RMB 139.2 million from RMB 137.1 million in 2023, reflecting continued investment in digital orthopedics[55]. - The smart factory project in Changping, Beijing, is expected to be operational by the first half of 2025, aimed at enhancing digital transformation and operational efficiency[36]. Assets and Financial Position - Total assets increased to RMB 3,335.4 million in 2024, up from RMB 3,003.0 million in 2023[8]. - Non-current assets rose to RMB 1,157.3 million in 2024, compared to RMB 1,028.2 million in 2023[8]. - As of December 31, 2024, the company's cash and cash equivalents amounted to approximately RMB 352.2 million, with total liquid assets reaching about RMB 1,027.7 million, an increase from RMB 757.3 million as of December 31, 2023[58]. - The company's net current assets as of December 31, 2024, were approximately RMB 1,581.6 million, reflecting an increase of about RMB 105.0 million from RMB 1,476.6 million as of December 31, 2023[59]. - The company has short-term bank loans of approximately RMB 604 million and long-term loans of approximately RMB 177 million, primarily for new factory construction and operational funding[112]. Corporate Governance and Management - The board is committed to high standards of corporate governance, believing it is essential for protecting shareholder interests and enhancing corporate value[200]. - The company has appointed KPMG as its auditor for the fiscal year ending December 31, 2024, and will propose a resolution for their reappointment at the upcoming annual general meeting[198]. - The company has established stable relationships with suppliers based on various factors, including market reputation and timely delivery of quality materials[104]. - The company has complied with all relevant environmental laws and regulations as of December 31, 2024[105]. Employee and Shareholder Information - The total employee compensation for the year ended December 31, 2024, was approximately RMB 254.9 million, slightly down from RMB 255.0 million for the previous year[67]. - The company has invested in employee training and development to retain talent amid increasing competition in the orthopedic industry[100]. - As of December 31, 2024, the company has 1,122,671,437 shares issued, with key shareholders holding significant stakes[134]. - Mr. Li Zhijiang holds 505,157,500 shares, representing 45.00% of the company's equity[133]. Risks and Challenges - The company faces risks related to policy changes, particularly from anti-corruption actions in the healthcare sector, which may impact future performance[99].

Core Viewpoint - The stock of Aikang Medical (01789) has shown strong resilience and recovery in the Hong Kong stock market despite significant fluctuations since April, supported by solid financial performance and strategic shifts towards digital orthopedics and orthopedic surgical robots [1][2][5]. Financial Performance - Aikang Medical reported a revenue of 1.346 billion RMB for the fiscal year 2024, representing a year-on-year growth of 23.1% [1]. - The company's net profit attributable to equity shareholders reached 274 million RMB, an increase of 50.4% year-on-year [1]. - The revenue from joint products has seen a recovery due to the clearance of price reduction risks associated with centralized procurement [1][7]. Stock Market Activity - Southbound funds have increased their holdings in Aikang Medical from 16.73% on December 2 of the previous year to 21.61% by April 16 of this year, with the market value of these holdings rising to nearly 1.4 billion HKD [2][5]. - The stock price of Aikang Medical experienced a significant decline of 86.31% from its peak in July 2020 to a low in April 2022, but has shown signs of recovery since then [5][7]. Market Dynamics - The centralized procurement results for joint products have led to a price increase for most items, with procurement quantities rising by approximately 10% compared to the first round of procurement [6][7]. - Aikang Medical's market share in top hospitals has been increasing, with a reported 20% market share in the domestic market and a 19% share in the top 10 hospitals [7]. Industry Trends - The orthopedic surgical robot market is projected to grow significantly, with an expected market size of 70.952 billion RMB in China by 2030, reflecting a compound annual growth rate of 36.9% [8]. - Aikang Medical is positioned as a leading provider of comprehensive solutions in the digital orthopedic space, integrating various technologies to create a closed-loop system for joint implants [11][12]. Competitive Landscape - The domestic orthopedic surgical robot market is becoming increasingly competitive, with Aikang Medical facing competition from companies like MicroPort, Jianjia Medical, and Tianzhihang, which currently hold significant market shares [12]. - Despite the competitive environment, Aikang Medical is expected to leverage its strengths in digital orthopedics to enhance its market position and drive future growth [12].

Summary of Conference Call Records Company Overview - The company achieved revenue of 1.35 billion yuan, a 23% increase from the previous year, with a net profit of 274 million yuan, marking a record high in performance and profit growth [1][11] - The company has been focusing on the orthopedic market since its establishment in 2003, with a strong emphasis on research and development [3] Key Industry Insights - The orthopedic industry is experiencing significant growth, with a notable increase in domestic market share, where the company holds approximately 20% [7] - The company is actively expanding its international presence, particularly in Europe, leveraging a dual-brand strategy [8][9] - The trend of import substitution is evident, with foreign brands holding about 20% of the market share, while domestic brands have increased their presence [7][28] Core Business Strategies - The company has developed a comprehensive ecosystem that includes pre-surgical planning, intraoperative 3D printing tools, and customized services [5][12] - Technological innovation is a key focus, with advancements in 3D printing and digital orthopedic solutions [2][4] - The introduction of the Virtual Treatment System (VTS) and robotic systems is aimed at enhancing surgical precision and patient outcomes [2][6] Financial Performance - In 2024, the company reported total revenue of 346 million yuan, with significant contributions from various product lines, including joint products and digital orthopedic services [11][12] - The gross profit reached 808 million yuan, with a net profit margin of 20.4%, reflecting a 50.4% increase in net profit compared to 2023 [11][15] - The company’s sales costs increased by 28.3% due to higher sales volumes, while the gross margin slightly decreased to 60% [15][16] Market Trends and Future Outlook - The company anticipates continued growth in the orthopedic market, with a projected increase in surgical volumes and market share [21][28] - The impact of new policies, such as DRG and DIP, is expected to stabilize pricing and enhance service quality [37][39] - The company aims to increase its overseas market share from 20% to approximately 30% over the next five years [33] Additional Insights - The company has established a digital interactive ecosystem to transition from a traditional manufacturing model to a service-oriented approach [3][6] - There is a focus on cost control and operational efficiency to mitigate risks associated with economic fluctuations [18][15] - The company is committed to maintaining a stable profit margin while investing in new projects and technologies [27][39] This summary encapsulates the key points from the conference call, highlighting the company's performance, strategies, and industry dynamics.

Investment Rating - The investment rating for the company is "Buy" with a target price of 8.15 HKD [8][9]. Core Views - The company achieved a revenue of 1.346 billion RMB in 2024, representing a 23% year-over-year increase, and a net profit of 274 million RMB, which is a 50% year-over-year increase, aligning with previous profit forecasts [1]. - The growth in profit is attributed to the execution of joint replacement contracts, with a 25.8% year-over-year increase in joint business revenue, and continuous optimization of sales, management, and R&D expense ratios [1]. - For 2025, the company is expected to enter a new cycle of simultaneous volume and price increases, with a projected net profit growth rate of 23% [1]. Summary by Sections Joint Business Segment - The joint segment generated revenue of 1.134 billion RMB in 2024, up 25.8% year-over-year, primarily due to successful contract renewals and price increases for certain products [2]. - The impact of contract renewals is expected to be more pronounced in 2025, with price increases exceeding 15% for full ceramic and knee joints, and a recovery in surgical volumes anticipated [2]. Spine and Trauma Segment - The spine and trauma segment achieved revenue of 127 million RMB in 2024, a 3% year-over-year increase, with expectations for steady growth in 2025 driven by the gradual increase in volume during the contract renewal period [3]. Customization Platform - The customization platform generated revenue of 51 million RMB in 2024, a 3.5% year-over-year increase, with expectations for stable growth in 2025 due to advancements in smart devices and ongoing overseas market expansion [4]. Profit Forecast and Valuation - The company is projected to have EPS of 0.30 RMB in 2025, with a target price set at 8.15 HKD based on a 25x PE ratio for 2025 [5]. - The expected revenues for 2025 are 1.639 billion RMB, with a net profit of 338 million RMB, reflecting a 23.3% increase from 2024 [7].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside of 15% to 35% [5][11]. Core Insights - The company achieved a revenue of RMB 1.35 billion in 2024, representing a year-over-year (YOY) increase of 23.1%, and a net profit of RMB 270 million, with a YOY growth of 50.4% [8]. - The company is expected to continue its rapid growth in the first half of 2025, with projected net profits of RMB 350 million, reflecting a YOY increase of 28.8% [8][10]. - The company has seen significant recovery in revenue from hip and knee joint replacement products following the renewal of centralized procurement contracts, with hip joint revenue growing by 23.5% and knee joint revenue by 30.1% [8]. Summary by Sections Company Overview - The company operates in the pharmaceutical and biotechnology industry, with a current H-share price of HKD 5.62 and a target price of HKD 7.3 [2][5]. Financial Performance - The company reported a comprehensive gross margin of 60.0% for 2024, with a net profit margin of 20.3%, an increase of 3.7 percentage points YOY [8]. - The earnings per share (EPS) for 2025 is projected to be RMB 0.31, with a corresponding price-to-earnings (P/E) ratio of 17x [10]. Revenue Breakdown - The revenue composition includes 55% from hip joint implants, 30% from knee joint implants, 10% from spinal and trauma implants, and 4% from customized products and services [3]. Future Projections - The company is expected to achieve net profits of RMB 440 million and RMB 526 million in 2026 and 2027, respectively, with growth rates of 24.9% and 19.4% [10].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside in the stock price [5][11]. Core Insights - The company is expected to achieve a net profit of RMB 2.7 billion in 2024, reflecting a year-over-year increase of 50.4%, which aligns with market expectations [6][8]. - Revenue for 2024 is projected to be RMB 13.5 billion, representing a year-over-year growth of 23.1% [8]. - The company anticipates significant revenue growth in the second half of 2024, with expected revenue of RMB 6.9 billion, a year-over-year increase of 54.8% [8]. - The company plans to distribute a dividend of HKD 0.072 per share [8]. Summary by Sections Company Overview - The company operates in the pharmaceutical and biotechnology sector, with a current H-share price of HKD 5.62 and a target price of HKD 7.3 [2][5]. Financial Performance - The company reported a comprehensive gross margin of 60.0% for 2024, with a net profit margin of 20.3%, an increase of 3.7 percentage points year-over-year [8]. - The revenue breakdown shows that hip joint replacement implants account for 55% of total revenue, knee joint replacement implants for 30%, spinal and trauma implants for 10%, and custom products and services for 4% [3][8]. Earnings Forecast - The company is projected to achieve net profits of RMB 3.5 billion, RMB 4.4 billion, and RMB 5.3 billion for the years 2025, 2026, and 2027, respectively, with year-over-year growth rates of 28.8%, 24.9%, and 19.4% [8][10]. - The earnings per share (EPS) are expected to be RMB 0.31, RMB 0.39, and RMB 0.47 for the same years [10]. Market Position - The company has a market share of approximately 20% in the joint replacement market and has seen an increase in contributions from tier 1 hospitals [8].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue of approximately RMB 1,346.4 million, representing a significant increase of 23.1% compared to RMB 1,093.9 million in 2023[4] - The gross profit for the same period was RMB 808.2 million, up 19.8% from RMB 674.5 million in the previous year[4] - Net profit for the year reached RMB 273.9 million, marking a substantial growth of 50.4% from RMB 182.1 million in 2023[4] - Basic earnings per share increased to RMB 0.25 from RMB 0.16, while diluted earnings per share rose to RMB 0.24 from RMB 0.16[6] - The company reported a total comprehensive income of RMB 282.6 million for the year, compared to RMB 195.6 million in 2023[6] - The company's profit before tax for 2024 reached RMB 319,822,000, an increase of 38.3% compared to RMB 231,117,000 in 2023[33] - The basic earnings per share for 2024 were RMB 0.245, up from RMB 0.164 in 2023, representing a growth of 49.4%[32] - The proposed final dividend per share for 2024 is HKD 0.072, compared to HKD 0.045 in 2023, indicating a 60% increase[36] Revenue Breakdown - Revenue from hip joint replacement implants was RMB 729,084,000, up 23.5% from RMB 590,396,000 in 2023[16] - Revenue from knee joint replacement implants increased by 30.1% to RMB 405,110,000 from RMB 311,351,000 in 2023[16] - The revenue from hip and knee joint products reached approximately RMB 1,134.2 million, representing a year-on-year increase of 25.8% as of December 31, 2024[52] - The revenue from spinal and trauma implant products was approximately RMB 127.3 million, with a year-on-year growth of 3.3% as of December 31, 2024[53] - The overseas business achieved revenue of RMB 274.3 million, marking an increase of approximately 20.8% compared to 2023[56] Research and Development - Research and development expenses for the year were RMB 139.2 million, slightly up from RMB 137.1 million in 2023[6] - The company’s research and development expenses were eligible for a 100% additional tax deduction under Chinese tax laws, maintaining the same rate as in 2023[33] - The company has continued to focus on expanding its product offerings, including digital orthopedic custom products and services, which generated RMB 51,335,000 in revenue[16] - The company has developed a deep learning-based 3D registration algorithm for CT/MRI/X-ray, enhancing the precision of anatomical structure reconstruction[58] Market Expansion and Strategy - The company achieved a significant increase in overseas revenue driven by the growth in surgical volume and active market expansion[4] - The company has diversified its customer base, with no single customer accounting for over 10% of total revenue in 2024[16] - The company secured a leading position in the second round of centralized procurement for artificial joints, with a procurement quantity increase of approximately 10% compared to the first round[45] - The company has achieved over 90% coverage of high-level hospitals, which is expected to support the growth of its revision products in the future[46] - The company is actively expanding its international market presence through the "Silk Road Health International Exchange Project," hosting 10 events across three continents and seven countries, reaching over 260 participants[63] Operational Efficiency - The company has implemented effective cost control measures, resulting in a reduction in operating costs and administrative expenses while maintaining R&D investments[46] - Employee costs for 2024 totaled RMB 254,945,000, slightly down from RMB 254,964,000 in 2023, with salaries and wages accounting for RMB 225,283,000[27] - Inventory costs increased significantly to RMB 551,556,000 in 2024 from RMB 435,315,000 in 2023, reflecting a rise of 26.7%[28] - Sales and distribution expenses increased by approximately 10.1% to RMB 240.9 million from RMB 218.8 million in 2023, driven by increased marketing activities[83] Assets and Liabilities - The total assets less current liabilities amounted to RMB 2,738.98 million, compared to RMB 2,504.85 million in the previous year[8] - Non-current assets increased to RMB 1,157.3 million from RMB 1,028.2 million in 2023, primarily due to investments in property, plant, and equipment[7] - Trade receivables as of December 31, 2024, amounted to RMB 561,392,000, an increase from RMB 496,393,000 in 2023, reflecting a growth of 13.1%[39] - The company reported a credit loss provision of RMB 66,572,000 for trade receivables in 2024, up from RMB 44,992,000 in 2023[39] - As of December 31, 2024, the company's cash and cash equivalents amounted to approximately RMB 352.2 million, with total liquid assets reaching approximately RMB 1,027.7 million, an increase from RMB 757.3 million as of December 31, 2023[88] Future Outlook - The smart factory project in Changping, Beijing, is expected to be operational by the first half of 2025, aimed at enhancing digital transformation and operational efficiency[64] - The company plans to leverage its dual-brand strategy to capture growth opportunities in international markets, particularly in emerging countries[67] - The focus on digital orthopedic capabilities and innovative business models is expected to enhance the company's competitive advantage in the long term[66] Corporate Governance - The company has not applied any new accounting standards that have not yet come into effect during the reporting period[14] - The company did not engage in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the year ended December 31, 2024[99] - There were no significant events affecting the company after the fiscal year ended December 31, 2024[100] - The annual general meeting is scheduled for June 18, 2025, with a suspension of share transfer registration from June 13 to June 18, 2025, to determine eligible shareholders for voting[112]

Investment Rating - The report initiates coverage on Aikang Medical (1789 HK) with a "Buy" rating and a target price of HKD 6 8 [1][2] Core Views - Aikang Medical is positioned as a leading domestic orthopedic joint company with strong performance in the national joint procurement program The company is expected to see accelerated revenue growth in 2025 as the impact of industry anti-corruption measures subsides and joint procurement risks are cleared [1] - The company is a pioneer in applying metal 3D printing to orthopedic implants and is leveraging technologies such as 3D printing ICOS and surgical robots to build a digital orthopedic platform which will help expand its presence in the mid-to-high-end market [1] - The orthopedic industry is under short-term pressure due to anti-corruption measures but will benefit in the long term from a large patient base increasing surgical penetration rates and domestic substitution [1] - Aikang Medical's core products have cleared procurement risks and the company is expected to see improved earnings visibility in 2025 with revenue growth potentially accelerating on a lower base in 2024 [1] Financial Projections - Revenue is projected to grow at a CAGR of 22% from 2023 to 2026E with 2024E and 2025E revenue expected to reach RMB 1 305 million and RMB 1 625 million respectively [3] - Net profit attributable to shareholders is forecasted to grow at a CAGR of 22 9% from 2023 to 2026E with 2024E and 2025E net profit expected to reach RMB 261 million and RMB 324 million respectively [3] - The company's PE ratio is expected to decline from 30 8x in 2023 to 17 5x in 2025E reflecting improved earnings growth [3] Industry Overview - The orthopedic industry continues to face short-term pressure from anti-corruption measures but is expected to recover in 2025 with revenue growth driven by a large patient base increasing surgical penetration rates and domestic substitution [16] - The industry saw a 3% YoY increase in revenue and a 1% YoY increase in net profit in 9M24 with signs of recovery in 1Q/2Q/3Q24 showing revenue growth of -9% +3% and +17% respectively [1] - Domestic substitution is expected to accelerate as foreign brands focus more on top-tier hospitals and reduce overall investment in China [1] Company-Specific Analysis - Aikang Medical's hip and knee joint products which contributed 85% of revenue in 1H24 performed well in the national joint procurement program with most products achieving price increases in the procurement [1] - The company is a leader in 3D printing technology for orthopedic implants and has developed the ICOS platform which offers customized solutions for patients and surgeons [2] - Aikang Medical has a dual-brand strategy in overseas markets with Aikang and JRI which provides a full product line advantage and potential for scale making international markets a key growth driver [2] Valuation and Target Price - The target price of HKD 6 8 is based on a 22x 2025E PE multiple in line with the company's historical average over the past three years [2] - The target price implies a 27% upside from the current price of HKD 5 4 [4]

Investment Rating - The report initiates coverage on Aikang Medical (1789.HK) with a "Buy" rating and a target price of HKD 6.8, indicating a potential upside of 27% from the current price of HKD 5.4 [4][5]. Core Views - Aikang Medical, as a leading domestic orthopedic joint company, continues to demonstrate strong bidding performance in the ongoing national procurement of joint products, despite short-term industry disruptions due to anti-corruption measures. The company is expected to see improved visibility in revenue growth in 2025 as these risks clear [1][2]. - The long-term growth potential is supported by Aikang's focus on technological research and development, being the first in China to apply metal 3D printing in orthopedic implants. The company aims to leverage 3D printing, ICOS, and surgical robots to create a digital orthopedic platform, expanding its presence in the mid-to-high-end market [2][3]. Financial Forecasts and Valuation - Revenue is projected to grow from RMB 1,052 million in 2022 to RMB 1,990 million by 2026, with a compound annual growth rate (CAGR) of 22% from 2023 to 2026. The expected revenue growth rates for the years 2024, 2025, and 2026 are 19.3%, 24.5%, and 22.5%, respectively [3][14][97]. - The net profit is forecasted to increase from RMB 205 million in 2022 to RMB 399 million by 2026, with significant growth anticipated in 2025 [3][14][97]. - The report assigns a target price based on a price-to-earnings (PE) ratio of 22x for 2025E, aligning with the company's historical average [2][97]. Industry Overview - The orthopedic industry is currently facing short-term pressures due to anti-corruption measures, but it is expected to benefit in the long term from a large patient base, increasing surgical penetration rates, and domestic product substitution [1][16]. - The national procurement of orthopedic consumables has largely been implemented, with joint products being the first to undergo this process. The average price drop in the recent procurement round was around 6%, indicating a moderate impact on pricing [24][57]. - The domestic orthopedic implant market's localization rate is approximately 50%, with significant room for improvement as domestic brands gain market share through national procurement initiatives [27][29]. Product Development and Innovation - Aikang Medical has a comprehensive product layout in the joint category, having launched various generations of knee and hip joint replacement products since 2004. The company has also expanded its product line through strategic acquisitions, enhancing its technological capabilities and market reach [52][53]. - The introduction of the ICOS platform allows for customized orthopedic solutions, which is expected to drive sales in the mid-to-high-end market segment [62][64]. International Expansion - Aikang Medical employs a dual-brand strategy with Aikang and JRI in overseas markets, focusing on cost-effectiveness and stable product quality. The company aims to increase its overseas revenue contribution from 19% in 1H24 to over 30% in the medium to long term [93][94].