Overview - The global infertility rate is rising, leading to increased demand for assisted reproductive technology (ART) and driving the growth of the reproductive medical equipment market in China [1][13] - Changing fertility concepts, delayed childbearing age, and heightened awareness of reproductive health are expanding the market opportunities for reproductive medical devices [1][13] - The aging population and government encouragement for having more children are further stimulating demand for reproductive medical equipment [1][13] - The market size of China's reproductive medical equipment industry is projected to reach 9.69 billion yuan in 2024, with a year-on-year growth of 9.86% [1][13] Market Policies - The Chinese government has issued various policies to support the development of the medical device industry, including reproductive medical equipment [7] - Policies aim to strengthen management, enhance innovation, and promote high-quality development in the medical device sector [7] Industry Chain - The upstream of the reproductive medical equipment industry includes suppliers of chemical materials, biological medical materials, electronic components, and software systems [9] - The midstream involves the research, design, and production of reproductive medical devices [9] - The downstream consists of public hospitals, private reproductive centers, and patients who benefit from these medical devices [9][11] Competitive Landscape - Historically, imported brands dominated the high-end market of reproductive medical devices in China, but domestic companies are increasingly closing the technology gap [13][14] - By 2024, domestic reproductive medical devices are expected to account for 55.11% of the market share, indicating a shift from reliance on imports to domestic alternatives [13][14] Company Analysis - Suzhou Beikang Medical Co., Ltd. focuses on reproductive health product development and achieved a revenue of 299 million yuan in 2024, with a gross profit margin of 45.54% [14][15] - Awei Technology Co., Ltd. specializes in clinical medical testing equipment and achieved a revenue of 203 million yuan in 2024, with 97.74% coming from medical device sales [15] Development Trends - Future advancements in reproductive medical devices will focus on greater intelligence, automation, and personalization, driven by technologies like gene editing and artificial intelligence [15][16] - Domestic companies are expected to continue improving their technological capabilities and market recognition, leading to an accelerated process of domestic substitution in the market [15][16]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 蘇州貝康醫療股份有限公司 呈交日期: 2025年9月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02170 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 82,713,835 | RMB | | 1 | RMB | | 82,713,835 | | 增加 / 減少 (-) | | | 0 | | | | RMB | | 0 | | 本月底結存 | | | 82,713,835 | RMB | | | 1 RMB | | 82,713,835 | | 2. 股份分類 | 普通股 | ...

Group 1 - The core viewpoint of the article highlights that Beikang Medical's stock has dropped over 11% following the release of its mid-year results for 2025, indicating a significant market reaction to the financial performance [1] - Beikang Medical reported a revenue of RMB 101 million, representing a year-on-year decrease of 18.76%, which reflects the overall slowdown in industry growth impacting the company's performance [1] - The company also disclosed a shareholder loss of RMB 121 million, which has widened by 1.31% compared to the previous year, indicating ongoing financial challenges [1] Group 2 - The decline in revenue is attributed not only to the industry-wide slowdown but also to the company's strategic decision to reduce involvement in lower-margin projects, aiming to enhance overall profit levels [1]

Group 1 - The core viewpoint of the article indicates that Beikang Medical-B (02170) experienced a significant decline in stock price, dropping over 11% to HKD 3.44, with a trading volume of HKD 5.3292 million [1] - Beikang Medical reported a mid-year performance for 2025, revealing a revenue of RMB 101 million, which represents a year-on-year decrease of 18.76% [1] - The company also disclosed a shareholder loss of RMB 121 million, which has widened by 1.31% compared to the previous year [1] Group 2 - The revenue decline is attributed to the overall slowdown in industry growth, which has negatively impacted the company's performance [1] - Additionally, the company has proactively reduced some lower-margin projects during the reporting period, aiming to enhance overall profit levels [1]

Core Insights - The article highlights the significant progress made by Beikang Medical in the assisted reproduction sector, particularly in the context of supportive fertility policies and the company's focus on high-value business and product optimization [1][3]. Financial Performance - In the first half of 2025, Beikang Medical reported revenue of 1.01 billion yuan, a year-on-year decrease of 19%, attributed to industry slowdown and a strategic reduction in low-margin businesses [3]. - Despite the revenue decline, overseas income grew by 9%, and EBITDA losses decreased by 5%, indicating improved core operational metrics with a 16% increase [3]. - The gross profit margin rose by 6.1 percentage points to 52.5%, with high-margin products increasing their share [3]. - The company achieved a 19% improvement in operating cash flow, with cash and cash equivalents totaling 544 million yuan as of June 30, 2025, reflecting a robust financial structure [3]. PGT Business Growth - The PGT (Preimplantation Genetic Testing) business emerged as a core growth driver, generating revenue of 55.85 million yuan, a 9% increase year-on-year, despite an overall decline in the IVD testing industry [6]. - The company maintained a high bid-winning rate of 83% in PGT business tenders, reinforcing its market share and competitive advantage [6]. Localization of Culturing Solutions - Beikang Medical achieved a significant milestone in localization with the registration of the Geri time-lapse incubator and the VitBase culture medium, marking the first true domestic alternatives to previously imported products [8]. - The embryology laboratory business benefited from this localization trend, with revenue reaching 42.446 million yuan, a 35% increase, driven by the sales of high-value consumables [8]. AI and Full Industry Chain Integration - The company has established a unique position in the industry by achieving an "AI + full industry chain closed loop," covering sperm analysis, embryo culture, and cryopreservation, which is a first in China's assisted reproduction field [12]. - This integration is expected to enhance clinical pregnancy rates and laboratory efficiency, laying a solid foundation for future industry upgrades and long-term growth [14].

Group 1 - The company reported a revenue of RMB 101 million for the six months ending June 30, 2025, highlighting its growth in the genetic testing sector [1] - The PGT-A test kit received China's first "National Innovative Medical Device Special Approval" Class III medical device registration certificate, indicating a significant regulatory achievement [1] - The company launched the BKA-210 intelligent sperm quality analyzer, which can complete non-invasive and accurate sperm quality analysis in three minutes, enhancing testing efficiency through AI algorithms [1] Group 2 - The acquisition of Singapore's BMX allowed the company to obtain the internationally leading Geri® time-lapse embryo incubator and Gems® embryo culture medium, marking a successful transition from imported to domestic products [2] - The Geri® incubator received a Class II medical device registration certificate from Jiangsu Drug Administration in July 2025, which is expected to significantly improve embryo quality and pregnancy success rates [2] - The company has established a sales and service network covering multiple countries and regions, with products certified by FDA, CE, and TGA, enhancing its global brand influence and facilitating the promotion of domestic products [2]

Core Viewpoint - Beikang Medical-B (02170) reported a decline in revenue and an increase in shareholder losses for the six months ending June 30, 2025, indicating financial challenges for the company [1] Financial Performance - The group's revenue was RMB 101 million, representing a year-on-year decrease of 18.76% [1] - Shareholder losses amounted to RMB 121 million, which is an increase of 1.31% compared to the previous year [1] - The loss per share was RMB 0.4 [1]

Part I [Company Overview](index=1&type=section&id=I.%20Company%20Overview) This section provides a high-level overview of the company's financial performance, strategic direction, and core competencies [Financial Summary](index=1&type=section&id=1.1%20Financial%20Summary) The company reported a **18.8% year-on-year revenue decrease** to **RMB 101.3 million** and a **loss of RMB 121.5 million** for the six months ended June 30, 2025 Financial Performance (RMB thousands) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 101,338 | 124,739 | -18.8% | | Cost of Sales | (48,147) | (66,861) | -28.1% | | Gross Profit | 53,191 | 57,878 | -8.1% | | Loss from Operations | (115,846) | (117,643) | -1.5% | | Loss Before Tax | (123,023) | (121,327) | +1.4% | | Loss for the Period | (121,493) | (119,915) | +1.3% | Financial Position (Period End) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 702,030 | 690,039 | +1.7% | | Current Assets | 864,995 | 979,242 | -11.7% | | Non-current Liabilities | 336,862 | 332,782 | +1.2% | | Current Liabilities | 198,487 | 194,684 | +2.0% | | Net Assets | 1,031,676 | 1,141,815 | -9.6% | | Total Equity Attributable to Owners of the Company | 1,032,946 | 1,143,066 | -9.6% | [Company Profile and Strategy](index=2&type=section&id=1.2%20Company%20Profile%20and%20Strategy) The company is a leading Chinese assisted reproduction medical device supplier, offering automated, intelligent full-chain solutions and pursuing global expansion through a multi-faceted strategy - The company's mission is to help more families have healthy children, and its vision is to become a global leading medical technology company[5](index=5&type=chunk) - A full-chain solution covering genetic testing, andrology diagnosis, cryopreservation, embryo culture, and intelligent management has been established[5](index=5&type=chunk) - The company relies on three major strategies: "full-chain platform + international brand influence + AI intelligent upgrade" to consolidate its market position in China and expand globally[7](index=7&type=chunk) [Mission, Vision, and Core Competencies](index=2&type=section&id=1.2.1%20Mission,%20Vision,%20and%20Core%20Competencies) The company aims to enhance fertility technology quality through innovative, automated assisted reproduction products, aspiring to be a global leader in medical technology - The company is committed to enabling medical institutions and patients to use automated, standardized, and intelligent assisted reproduction products, ensuring stable and high-quality fertility technology[5](index=5&type=chunk) - The mission is to help more families have healthy children, and the vision is to become a global leading medical technology company[5](index=5&type=chunk) [Full-Chain Solutions](index=2&type=section&id=1.2.2%20Full-Chain%20Solutions) The company offers comprehensive assisted reproduction solutions, from genetic testing to intelligent management, enhanced by localized, internationally acquired embryo culture technologies - The PGT-A reagent kit obtained China's first "National Innovative Medical Device Special Approval" Class III medical device registration certificate[5](index=5&type=chunk) - The BKA-210 intelligent sperm quality analyzer and BKP200 portable sperm quality analyzer were launched, enhancing andrology diagnostic efficiency and widespread application[5](index=5&type=chunk) - The BCT38 intelligent liquid nitrogen tank is the first NMPA-approved and CE-certified product in China, and the SG800 ultra-low temperature storage system has a single unit capacity of 30,000-50,000 tubes[6](index=6&type=chunk) - Through the acquisition of Singapore BMX, the company obtained the Geri® time-lapse embryo incubator and Gems® embryo culture media, with the Geri® time-lapse incubator receiving its Class II medical device registration certificate in July 2025, achieving import substitution[6](index=6&type=chunk) [Overseas Markets and AI Applications](index=3&type=section&id=1.2.3%20Overseas%20Markets%20and%20AI%20Applications) The company leverages AI with its iARMS system for intelligent lab management and has established a global sales network with international product certifications - The iARMS intelligent management system was launched, utilizing AI and IoT technologies for structured medical records, intelligent scheduling, real-time quality control, and auxiliary decision-making[7](index=7&type=chunk) - A sales and service network covering multiple countries and regions has been established, with products obtaining FDA, CE, TGA, and other authoritative certifications[7](index=7&type=chunk) Part II [Product Portfolio and R&D Progress](index=3&type=section&id=II.%20Product%20Portfolio%20and%20R%26D%20Progress) This section details the company's diverse product offerings across various laboratory segments and highlights key research and development achievements [Genetic Laboratory Products](index=3&type=section&id=2.1%20Genetic%20Laboratory%20Products) The genetic lab offers PGT-A kits and high-throughput gene sequencers, with PGT-A being China's first approved product, significantly improving pregnancy outcomes - The PGT-A reagent kit can increase clinical pregnancy rates to **72%** and reduce miscarriage rates to **6.9%**[8](index=8&type=chunk) - The localized high-throughput gene sequencer DA500 obtained its Class III medical device registration certificate in September 2023, and the DA5000 obtained its Class III medical device registration certificate in September 2024, with the DA5000's throughput increasing by over **4 times**[9](index=9&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) - The PGT-A reagent kit obtained its first "National Innovative Medical Device Special Approval" Class III medical device registration certificate in February 2020 and was approved for renewal until February 20, 2030, in October 2024[9](index=9&type=chunk) [Andrology Laboratory Products](index=4&type=section&id=2.2%20Andrology%20Laboratory%20Products) The andrology lab addresses male infertility with the BKA-210 intelligent sperm analyzer, offering precise live sperm detection, and the portable BKP200 for home use - Chinese male sperm count has decreased by **75%** in the past 40 years, with male factors contributing to nearly **40%** of infertility cases[10](index=10&type=chunk) - The new-generation intelligent sperm quality analyzer, through microfluidics, microscopic imaging, and AI big data models, achieved the world's first precise detection of live sperm concentration, motility, and morphology[10](index=10&type=chunk) - The portable sperm quality analyzer BKP200 obtained its Class II medical device registration certificate in April 2025, extending professional-grade testing to home settings[15](index=15&type=chunk)[33](index=33&type=chunk) [Cryopreservation Laboratory Products](index=5&type=section&id=2.3%20Cryopreservation%20Laboratory%20Products) The cryopreservation lab offers fertility preservation solutions, including China's first certified intelligent liquid nitrogen tank and a global-first automated ultra-low temperature embryo storage device - China is expected to have **10 million** new embryos requiring cryopreservation annually, indicating immense demand[12](index=12&type=chunk) - The intelligent liquid nitrogen tank is the first certified ultra-low temperature storage product in China, enabling real-time fertility preservation and location tracking[12](index=12&type=chunk) - The company has developed the world's first automated ultra-low temperature intelligent embryo storage device capable of storing **30,000-50,000** gametes[12](index=12&type=chunk) [Embryo Laboratory Products](index=5&type=section&id=2.4%20Embryo%20Laboratory%20Products) The embryo lab provides Geri® time-lapse incubators and Gems® culture media, with the Geri® incubator achieving localization in July 2025, reducing costs by over 30% - The Geri® time-lapse incubator features **6** independent chambers, enabling stable embryo culture and real-time monitoring[11](index=11&type=chunk) - The Geri® time-lapse embryo incubator and Gems® embryo culture media were acquired through the acquisition of Singapore BMX[6](index=6&type=chunk) - The Geri® time-lapse incubator obtained its Class II medical device registration certificate in July 2025, marking its successful transition from import to domestic production, with costs reduced by over **30%**[6](index=6&type=chunk)[29](index=29&type=chunk) [Software Laboratory Products](index=6&type=section&id=2.5%20Software%20Laboratory%20Products) The software lab's iARMS intelligent management system integrates AI and IoT to connect lab data across the reproductive cycle, enhancing efficiency and pregnancy success - iARMS (Intelligent Assisted Reproductive Medical Record Management System) provides a new generation of "AI + Internet of Things (IoT)" information solutions[13](index=13&type=chunk) - The system enables data interconnection across major laboratory scenarios, improving the reproductive center's work efficiency, operational safety, and pregnancy success rates[13](index=13&type=chunk) - iARMS breaks traditional information silos, ensures modularity and interconnection of laboratory modules, and incorporates an IoT sample verification system to safeguard sample information security[13](index=13&type=chunk) [Research and Development Activities](index=17&type=section&id=2.6%20Research%20and%20Development%20Activities) R&D saw significant progress with the portable sperm analyzer and Geri® incubator receiving registration, the latter achieving localization and **over 30% cost reduction** - In April 2025, the portable sperm quality analyzer obtained its Class II medical device registration certificate[36](index=36&type=chunk) - In July 2025, the Geri® time-lapse incubator obtained its Class II medical device registration certificate, achieving "import to domestic production" with costs reduced by over **30%**[37](index=37&type=chunk) - In August 2025, the first product in the Gems embryo culture media series (VitBase Embryo Processing Solution) obtained its Class III medical device registration certificate, laying the foundation for subsequent full-line localization[37](index=37&type=chunk) [Intellectual Property](index=18&type=section&id=2.7%20Intellectual%20Property) As of June 30, 2025, the company holds **149 registered patents** and **133 trademarks** in China, alongside other IP, showcasing a robust portfolio - As of June 30, 2025, the company has registered **149 patents**, **133 trademarks**, **59 software copyrights**, and **16 domain names** in China[38](index=38&type=chunk) - Additionally, **9** trademarks were registered in Hong Kong and **5** in Taiwan, with **67** patent applications filed[38](index=38&type=chunk) Part III [Commercialization and Market Strategy](index=18&type=section&id=III.%20Commercialization%20and%20Market%20Strategy) This section outlines the company's strategies for expanding its sales network, fostering strategic partnerships, and pursuing international market penetration [Sales Network and Customer Expansion](index=18&type=section&id=3.1%20Sales%20Network%20and%20Customer%20Expansion) The company has established a global sales network across EMEA, APAC, and North America, with **over 170 sales personnel** and **88 distributors** serving **over 1,000 clinical institutions** - A global sales network covering Europe-Middle East-Africa (EMEA), Asia-Pacific (APAC), and North America has been established[39](index=39&type=chunk) - As of June 30, 2025, the company has over **170** sales personnel globally, collaborating with over **48** distributors in mainland China and **40** distributors in other global regions, serving over **1,000** clinical institutions[39](index=39&type=chunk) [Strategic Partnerships](index=19&type=section&id=3.2%20Strategic%20Partnerships) The company has forged strategic partnerships with Rhea Labs and IVI RMA Global to advance brand building, AI product development, and expand into various assisted reproduction solutions - In February 2025, a strategic cooperation agreement was signed with Rhea Labs Pte. Ltd. to jointly promote brand building and AI new product development in specific regions[40](index=40&type=chunk) - In March 2025, cooperation was expanded with global leading reproductive medical group IVI RMA Global, extending to PGT equipment and reagents, andrology AI detection, automated ultra-low temperature storage, and full laboratory process management systems[40](index=40&type=chunk) [Internationalization Strategy](index=19&type=section&id=3.3%20Internationalization%20Strategy) Internationalization is a core strategy, with core products rapidly penetrating global high-end markets, supported by ongoing CE and FDA certifications for compliance - Going global is an unshakeable strategic core for the company, and an important path to break through industry competition and define future standards[41](index=41&type=chunk) - Core products have fully initiated penetration into high-end markets in Europe, the Middle East, Asia-Pacific, and the Americas, while simultaneously launching CE, FDA, and other international certifications to promote global product compliance and market access[41](index=41&type=chunk) Part IV [Business Strategy](index=20&type=section&id=IV.%20Business%20Strategy) This section outlines the company's overarching business strategies, focusing on building a comprehensive assisted reproduction platform, leveraging brand influence, and integrating AI for intelligent upgrades [Building a Full-Chain Assisted Reproduction Platform](index=20&type=section&id=4.1%20Building%20a%20Full-Chain%20Assisted%20Reproduction%20Platform) The company is building a "pyramid-shaped" full-chain assisted reproduction platform, integrating advanced technologies, core products, foundational support, and a software ecosystem for global expansion - The company has established a "pyramid-shaped" full-chain layout, becoming one of the few global enterprises with full-chain capabilities[44](index=44&type=chunk) - The high-end technology layer, represented by PGT-A, is the first approved product of its kind in China, creating a first-mover advantage[44](index=44&type=chunk) - The foundational support layer involves acquiring Geri® time-lapse incubators and Gems® culture media through the acquisition of Genea Biomedx, achieving Geri® incubator localization registration, and accelerating Gems® culture media localization[44](index=44&type=chunk) - The software ecosystem, through the iARMS intelligent assisted reproduction management system, enables comprehensive hardware device access and cross-laboratory data integration[45](index=45&type=chunk) [Leveraging Brand Value and International Influence for Performance Growth](index=21&type=section&id=4.2%20Leveraging%20Brand%20Value%20and%20International%20Influence%20for%20Performance%20Growth) The company leverages its "professional, innovative, international" brand to expand performance, with products in **over 70% of leading domestic centers** and a global network via acquisitions and partnerships - The company's products have entered over **70%** of leading reproductive centers and established demonstration projects through strategic partnerships[46](index=46&type=chunk) - A sales and service network covering over **20** countries and **600** reproductive centers was established through the acquisition of Genea Biomedx[46](index=46&type=chunk) - Strategic collaborations have been formed with global leading reproductive institutions such as IVIRMA (Spain) and Rhea Labs (Singapore) to jointly develop intelligent IVF clinics[46](index=46&type=chunk) [Empowering Intelligent Upgrades with AI](index=21&type=section&id=4.3%20Empowering%20Intelligent%20Upgrades%20with%20AI) AI is central to the company's strategy, driving "AI-led intelligent assisted reproduction" by integrating hardware data with the iARMS system for comprehensive AI analysis and decision-making - AI is becoming the core engine for the company's strategic upgrade, proposing "AI-led intelligent assisted reproduction"[47](index=47&type=chunk) - With the iARMS intelligent management system as the hub, dispersed clinical data is connected into a complete closed loop, becoming a data asset that drives industry intelligent upgrades[47](index=47&type=chunk) - The Geri® time-lapse incubator's accompanying EEVA® embryo assessment system, as the world's first FDA-certified AI analysis software, can improve the efficiency of selecting high-quality embryos by approximately **40%**[48](index=48&type=chunk) - The company's vision is to become the world's first "AI + Reproduction" platform enterprise, redefining the technical boundaries of assisted reproduction through an AI-led intelligent reproductive ecosystem[49](index=49&type=chunk) Part V [Financial Performance](index=23&type=section&id=V.%20Financial%20Performance) This section presents the company's detailed financial statements, including the comprehensive income statement, comprehensive income and other comprehensive income statement, and statement of financial position [Consolidated Statement of Profit or Loss](index=23&type=section&id=5.1%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, revenue decreased by **18.8% to RMB 101.3 million**, gross profit declined by **8.1%**, and the loss for the period widened slightly to **RMB 121.5 million** Consolidated Statement of Profit or Loss (RMB thousands) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 101,338 | 124,739 | | Cost of Sales | (48,147) | (66,861) | | Gross Profit | 53,191 | 57,878 | | Net Other Income | 14,938 | 25,207 | | Selling and Distribution Expenses | (52,862) | (50,658) | | Administrative Expenses | (74,212) | (80,380) | | Research and Development Expenses | (56,812) | (69,639) | | Loss from Operations | (115,846) | (117,643) | | Loss Before Tax | (123,023) | (121,327) | | Loss for the Period | (121,493) | (119,915) | | Basic and Diluted Loss Per Share (RMB) | (0.4) | (0.4) | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=24&type=section&id=5.2%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company reported a **loss of RMB 121.5 million**, with positive exchange differences from overseas subsidiaries narrowing the total comprehensive loss to **RMB 110.1 million** Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousands) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the Period | (121,493) | (119,915) | | Exchange Differences on Financial Statements of Overseas Subsidiaries | 11,357 | (5,557) | | Other Comprehensive Income for the Period | 11,357 | (5,557) | | Total Comprehensive Loss for the Period | (110,136) | (125,472) | [Consolidated Statement of Financial Position](index=25&type=section&id=5.3%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, non-current assets slightly increased, while current assets decreased by **11.7% to RMB 865.0 million**, leading to a decline in net assets and total equity Consolidated Statement of Financial Position (RMB thousands) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 702,030 | 690,039 | | Current Assets | 864,995 | 979,242 | | Current Liabilities | 198,487 | 194,684 | | Non-current Liabilities | 336,862 | 332,782 | | Net Assets | 1,031,676 | 1,141,815 | | Total Equity | 1,031,676 | 1,141,815 | Part VI [Financial Review and Analysis](index=37&type=section&id=VI.%20Financial%20Review%20and%20Analysis) This section provides a detailed analysis of the company's financial performance, including revenue, costs, expenses, and key balance sheet items [Revenue and Cost of Sales](index=37&type=section&id=6.1%20Revenue%20and%20Cost%20of%20Sales) Revenue decreased by **18.8% to RMB 101.3 million**, and cost of sales decreased by **28.1% to RMB 48.1 million**, reflecting industry slowdown and strategic project adjustments - Revenue decreased by **18.8%** from RMB 124.7 million in the same period of 2024 to **RMB 101.3 million** in 2025, primarily due to industry slowdown and proactive reduction of less profitable projects[85](index=85&type=chunk) - Cost of sales decreased by **28.1%** from RMB 66.9 million in the same period of 2024 to **RMB 48.1 million** in 2025, mainly in line with the decrease in revenue[86](index=86&type=chunk) [Gross Profit and Gross Margin](index=37&type=section&id=6.2%20Gross%20Profit%20and%20Gross%20Margin) Gross profit decreased by **8.1% to RMB 53.2 million**, while gross margin improved from **46.4% to 52.5%** due to process optimization and cost control - Gross profit decreased by **8.1%** from RMB 57.9 million in the same period of 2024 to **RMB 53.2 million** in 2025[87](index=87&type=chunk) - The overall gross margin increased from **46.4%** in the same period of 2024 to **52.5%** in 2025, primarily due to optimized processes, controlled material prices, and the reduction of less profitable projects[87](index=87&type=chunk) [Net Other Income](index=37&type=section&id=6.3%20Net%20Other%20Income) Net other income decreased by **40.9% to RMB 14.9 million**, mainly due to reduced exchange gains and lower bank deposit interest income - Net other income decreased by **40.9%** from RMB 25.2 million in the same period of 2024 to **RMB 14.9 million** in 2025[88](index=88&type=chunk) - The decrease was primarily due to reduced exchange gains from currency fluctuations and lower bank deposit interest income[88](index=88&type=chunk) [Selling and Distribution Expenses](index=38&type=section&id=6.4%20Selling%20and%20Distribution%20Expenses) Selling and distribution expenses increased by **4.3% to RMB 52.9 million**, driven by international sales network development and new product marketing - Selling and distribution expenses increased by **4.3%** from RMB 50.7 million in the same period of 2024 to **RMB 52.9 million** in 2025[89](index=89&type=chunk) - The increase was primarily due to the establishment of international sales regions and increased marketing activities for new product sales[89](index=89&type=chunk) [Administrative Expenses](index=38&type=section&id=6.5%20Administrative%20Expenses) Administrative expenses decreased by **7.7% to RMB 74.2 million**, attributed to optimized management structure and enhanced resource integration - Administrative expenses decreased by **7.7%** from RMB 80.4 million in the same period of 2024 to **RMB 74.2 million** in 2025[90](index=90&type=chunk) - The decrease was primarily due to optimized management structure and domestic and international synergy, leading to effective resource integration[90](index=90&type=chunk) [Research and Development Expenses](index=38&type=section&id=6.6%20Research%20and%20Development%20Expenses) R&D expenses decreased by **18.4% to RMB 56.8 million**, as several products achieved registration and commercialization Research and Development Expenses (RMB thousands) | Component | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Staff Costs | 27,276 | 34,077 | | Clinical Trial Expenses | 22,768 | 19,603 | | Consumables Expenses | 3,330 | 8,381 | | Depreciation Expenses | 2,956 | 3,728 | | Other | 482 | 3,850 | | **Total** | **56,812** | **69,639** | - R&D expenses decreased by **18.4%** from RMB 69.6 million in the same period of 2024 to **RMB 56.8 million** in 2025, primarily because several products have obtained registration certificates and achieved commercialization[92](index=92&type=chunk) [Finance Costs and Income Tax](index=39&type=section&id=6.7%20Finance%20Costs%20and%20Income%20Tax) Finance costs increased by **94.6% to RMB 7.2 million** due to higher bank loan principal, while income tax credit slightly increased - Finance costs increased by **94.6%** from RMB 3.7 million in the same period of 2024 to **RMB 7.2 million** in 2025, primarily due to an increase in bank loan principal[93](index=93&type=chunk) - Income tax credit increased from RMB 1.4 million in the same period of 2024 to **RMB 1.5 million** in 2025, with the change attributed to variations in deferred tax assets and liabilities[94](index=94&type=chunk) [Balance Sheet Items Analysis](index=39&type=section&id=6.8%20Balance%20Sheet%20Items%20Analysis) This section analyzes changes in key balance sheet items, including inventories, receivables, cash and equivalents, and payables [Inventories](index=39&type=section&id=6.8.1%20Inventories) Inventories increased by **34.4% to RMB 124.2 million**, driven by increased stock of products and raw materials to meet anticipated demand - Inventories increased by **34.4%** from RMB 92.4 million as of December 31, 2024, to **RMB 124.2 million** as of June 30, 2025[95](index=95&type=chunk) - The increase was primarily due to increased stock of products and raw materials for anticipated rising demand[95](index=95&type=chunk) [Trade and Other Receivables](index=39&type=section&id=6.8.2%20Trade%20and%20Other%20Receivables) Trade and other receivables decreased by **3.2% to RMB 193.9 million**, reflecting strengthened collection management and improved customer payment efficiency - Trade and other receivables decreased by **3.2%** from RMB 200.3 million as of December 31, 2024, to **RMB 193.9 million** as of June 30, 2025[96](index=96&type=chunk) - The decrease was primarily due to strengthened group collection management and improved customer payment efficiency[96](index=96&type=chunk) [Cash and Cash Equivalents](index=35&type=section&id=6.8.3%20Cash%20and%20Cash%20Equivalents) As of June 30, 2025, cash and cash equivalents totaled **RMB 543.9 million**, a decrease from the end of 2024, with bank cash at **RMB 296.9 million** Cash and Cash Equivalents (RMB thousands) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Fixed Deposits Originally Maturing Over Three Months | — | 111,884 | | Bank Cash | 296,906 | 574,111 | | Fixed Deposits Originally Maturing Within Three Months | 247,387 | — | | Less: Restricted Cash | (419) | (1,362) | | **Cash and Cash Equivalents** | **543,874** | **572,749** | - Cash and cash equivalents located in mainland China were **RMB 351.06 million** (June 30, 2025) and **RMB 413.71 million** (December 31, 2024)[81](index=81&type=chunk) [Trade and Other Payables](index=39&type=section&id=6.8.4%20Trade%20and%20Other%20Payables) Trade and other payables decreased by **2.1% to RMB 160.5 million**, mainly due to the settlement of headquarters construction project payables - Trade and other payables decreased by **2.1%** from RMB 163.9 million as of December 31, 2024, to **RMB 160.5 million** as of June 30, 2025[98](index=98&type=chunk) - The decrease was primarily due to the settlement of payables for the headquarters construction project[98](index=98&type=chunk) [Financial Resources, Liquidity, and Capital Structure](index=39&type=section&id=6.9%20Financial%20Resources,%20Liquidity,%20and%20Capital%20Structure) The company funds operations via bank loans, equity, and cash, with current assets decreasing by **11.7% to RMB 865.0 million**; it maintains a net cash position - Current assets decreased by **11.7%** from RMB 979.2 million as of December 31, 2024, to **RMB 865.0 million** as of June 30, 2025[99](index=99&type=chunk) - As of June 30, 2025, unsecured bank loans amounted to **RMB 117.0 million**, and secured bank loans amounted to **RMB 219.0 million**[99](index=99&type=chunk) - The company is in a net cash position, thus the gearing ratio is not applicable[106](index=106&type=chunk) Part VII [Other Important Information](index=41&type=section&id=VII.%20Other%20Important%20Information) This section covers additional critical information, including significant investments, capital commitments, employee details, corporate governance, and global offering proceeds [Significant Investments, Acquisitions, and Disposals](index=41&type=section&id=7.1%20Significant%20Investments,%20Acquisitions,%20and%20Disposals) The company did not engage in any significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the reporting period - During the reporting period, the company did not make any significant investments or major acquisitions or disposals of subsidiaries, associates, or joint ventures[101](index=101&type=chunk) [Capital Commitments and Asset Pledges](index=41&type=section&id=7.2%20Capital%20Commitments%20and%20Asset%20Pledges) As of June 30, 2025, total capital commitments were **RMB 15.0 million**, primarily for property and equipment, with **RMB 219.0 million** in secured bank loans pledged against land use rights Capital Commitments (RMB thousands) | Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Property, Plant, and Equipment | 12,488 | 56,327 | | Subscription for Limited Partnership Interests in Funds | 2,500 | 5,205 | | **Total** | **14,988** | **61,532** | - Secured bank loans of **RMB 219.0 million** are pledged against the Group's land use rights[105](index=105&type=chunk) [Employees and Remuneration](index=42&type=section&id=7.3%20Employees%20and%20Remuneration) As of June 30, 2025, the company had **419 employees**, a reduction from the prior year, with total remuneration costs of **RMB 82.8 million** due to operational integration - As of June 30, 2025, the Group had **419** employees (June 30, 2024: **528** employees)[107](index=107&type=chunk) - Total remuneration costs were approximately **RMB 82.8 million** (same period in 2024: RMB 92.3 million), with the decrease primarily due to the integration of global business operations and optimization-driven employee reduction[107](index=107&type=chunk) [Corporate Governance](index=44&type=section&id=7.4%20Corporate%20Governance) The company maintains high corporate governance standards, complying with applicable codes, and has appointed new Nomination Committee members to enhance gender diversity - The company complies with all applicable code provisions of the Corporate Governance Code, except that the roles of Chairman and CEO are not separated, both held by Dr. Liang[110](index=110&type=chunk) - To comply with the Nomination Committee's gender diversity requirements, Ms. Jiang Junchao (Executive Director) and Dr. Yang Shupiao (Independent Non-executive Director) were appointed as Nomination Committee members, effective June 25, 2025[110](index=110&type=chunk) [Use of Proceeds from Global Offering](index=44&type=section&id=7.5%20Use%20of%20Proceeds%20from%20Global%20Offering) The company raised **HKD 1,898.7 million** from its global offering, with **HKD 1,673.2 million** utilized by June 30, 2025, for various R&D, marketing, and production initiatives - The company raised net proceeds of approximately **HKD 1,898.7 million** (equivalent to RMB 1,584.1 million) from its global offering[111](index=111&type=chunk) Use of Proceeds from Global Offering (HKD millions) | Use of Proceeds | Percentage of Planned Total Use | Actual Amount Utilized as of June 30, 2025 (HKD millions) | | :--- | :--- | :--- | | Core Product — PGT-A Reagent Kits | 20% | 320.1 | | PGT-A Reagent Kit Sales and Marketing Activities | 8% | 145.4 | | Upgrading Production Machinery and Equipment | 12% | 174.7 | | PGT-M Reagent Kit Clinical Trials, Registration, and Commercialization | 10% | 166.4 | | Other Product Development, Clinical Trials, Registration, and Commercialization | 30% | 532.3 | | Enhancing R&D Capabilities and Technology | 15% | 269.8 | | Construction and Decoration of R&D Center and Expansion of Production Facilities | 10% | 102.4 | | Working Capital and General Corporate Purposes | 15% | 282.2 | | **Total** | **100%** | **1,673.2** | - As of June 30, 2025, **HKD 1,673.2 million** of the global offering proceeds had been utilized, with **HKD 225.5 million** remaining unutilized[113](index=113&type=chunk) [Compliance and Interim Dividend](index=47&type=section&id=7.6%20Compliance%20and%20Interim%20Dividend) The company maintained compliance with all applicable laws and regulations, with no significant disputes or penalties, and the Board did not recommend an interim dividend - During the reporting period, the Group complied in all material respects with the laws, regulations, and regulatory requirements of its operating locations[116](index=116&type=chunk) - The Directors do not recommend the payment of an interim dividend for the reporting period (2024 interim dividend: nil)[117](index=117&type=chunk) [Audit Committee Review](index=48&type=section&id=7.7%20Audit%20Committee%20Review) The Audit Committee and management reviewed accounting policies and interim results, with KPMG conducting a review of the unaudited consolidated interim financial statements - The Audit Committee has reviewed with management the accounting principles and policies adopted by the company and the interim results for the six months ended June 30, 2025[120](index=120&type=chunk) - KPMG, the Group's external auditor, has reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025[120](index=120&type=chunk) Part VIII [Appendix](index=50&type=section&id=VIII.%20Appendix) This section provides definitions for key terms and abbreviations used throughout the report [Definitions](index=50&type=section&id=8.1%20Definitions) This section provides definitions for key terms and abbreviations used throughout the report, ensuring clarity and consistency

Core Viewpoint - Beikang Medical-B (2170.HK) has seen a significant stock price increase, rising over 12% to HKD 4.36, marking its sixth consecutive day of gains and reaching a new high since March 17 [1] Company Summary - The company announced that its Gems culture medium (embryo handling fluid VitBase) has officially received approval from the National Medical Products Administration (NMPA) [1] - This registration marks an important milestone for the localization of reproductive fluids in China, indicating that Beikang Medical has developed full industry chain capabilities from international acquisition to domestic registration conversion [1] - VitBase is part of the GEMS culture medium series developed by Beikang's subsidiary BMX (formerly Genea Biomedx) [1] - The approval reflects the government's support for the innovative transformation of medical products acquired overseas, positioning Beikang Medical as one of the few companies globally with CE, FDA, and TGA certifications for assisted reproductive fluids, covering the entire process of assisted reproduction [1]

Core Viewpoint - The approval of the Gems embryo culture medium series (VitBase embryo processing solution) by the National Medical Products Administration marks a significant milestone for the company, establishing it as one of the few global enterprises with CE, FDA, and TGA certifications in the assisted reproductive technology sector [1][2]. Group 1 - The Gems embryo culture medium series is developed by Genea Biomedx, a wholly-owned subsidiary of BMX Holdco Pte. Ltd., and received its Class III medical device registration certificate on August 25, 2025 [1]. - The approval reflects the support from the national government for the innovative transformation of medical products acquired from overseas [1]. - The VitBase embryo processing solution is based on over 30 years of clinical experience from Genea Biomedx, ensuring high product quality while enhancing accessibility and supply chain security [1]. Group 2 - VitBase is the first of 11 products in the GEMS embryo culture medium series to receive medical device approval, indicating a gradual localization of international first-class culture medium technology [2]. - This approval lays the foundation for the subsequent domestic production of the entire series of culture media in China [2].