24H1 增速亮眼，Avinger 强化产品矩阵 | --- | --- | --- | |-----------------------------------------|----------------|--------------------------------------------------------------------| | [Table_Rank] 投资评级：买入（维持） | | 主要观点： | | 报告日期： | 2024-08-27 | ⚫[Table 事件：_Summary] | | [Table_BaseData] 收盘价（港元） | 11.20 | 2024 年 8 月 20 日，公司发布 2024 年半年度报告。报告期内，公司实 | | 近 12 个月最高/最低（港元） | 14.66/7.20 | 现营业收入 3.66 亿元（+59.0%），其中国内收入 3.55 亿元（+58.3%）， | | 总股本（百万股） | 330 | 海外收入 0.11 亿元（+84.2%）；未经调整盈利 0.69 亿元，经调整盈利 | | 流通股本（百万股） | 322 | 0.78 亿 ...

浦银国际研究 公司研究 | 医药行业 浦银国际 公司研究 10. 5 11. 5 12. 5 13. 5 14. 5 15. 5 16. 5 归创通桥 （2190.HK） 归创通桥（2190.HK）：1H24 业绩亮眼， 首次实现 IFRS 及经调整口径全面盈利 公司 1H24 收入继续维持高增长，并同时在 IFRS 及经调整口径下首次实 现盈利，整体业绩表现亮眼。毛利率受集采降价影响有所下滑，预计毛 利率随着集采扩围继续承压，但集采带来的规模效应将逐步体现，叠加 经营效率提升，我们预计公司核心营业利润率将由 1H24 的 6%提升至 2026 年 15%。维持"买入"评级，略升目标价至 16.4 港元。 1H24 业绩亮眼，首次实现 IFRS 及经调整口径全面盈利。1H24 年收入 同比+59%至人民币 3.7 亿元（vs 业绩预告：>3.6 亿元）；毛利率-2.9pcts 至 71.3%，主要受到集采降价以及公司主动对未集采产品调价以获得 更大市场份额的影响；归母净利同比扭亏为盈至 6,887 万元（vs 业绩 预告：>5,000 万元）；经调整净利 7,817 万元（vs 1H23：亏损 552 万 元 ...

Financial Performance - Revenue for the first half of 2024 reached RMB 365.99 million, a 59.0% increase compared to RMB 230.13 million in the same period of 2023[2] - Gross profit for the first half of 2024 was RMB 260.91 million, up 52.9% from RMB 170.65 million year-on-year[2] - The company reported a net profit of RMB 68.87 million, a significant turnaround from a loss of RMB 35.51 million in the first half of 2023, representing a 293.9% increase[2] - The company achieved an adjusted net profit of RMB 78.17 million, a substantial increase of 1,515.6% compared to a loss of RMB 5.52 million in the previous year[2] - Operating profit for the first half of 2024 was RMB 36.6 million, a significant improvement from an operating loss of RMB 74.13 million in the same period of 2023[8] - The company reported a profit attributable to equity holders of RMB 68,865 thousand for the six months ended June 30, 2024, compared to a loss of RMB 35,514 thousand in the same period of 2023[23] - Basic earnings per share for the six months ended June 30, 2024, was RMB 0.2125, a significant improvement from a loss per share of RMB 0.1077 in the prior year[24] Revenue Breakdown - Sales from neurovascular intervention products increased by 46.7% year-on-year, driven by the growth of key products such as the Silver Snake intracranial support catheter and the Dragon CRD[3] - Sales from peripheral vascular intervention products surged by 88.2% year-on-year, attributed to the rapid growth of products like the UltraFree drug-eluting PTA balloon catheter[3] - Revenue from neurovascular intervention devices was RMB 243,510 thousand, up from RMB 166,038 thousand, reflecting a growth of 46.5% year-over-year[16] - Revenue from peripheral vascular intervention devices reached RMB 120,635 thousand, compared to RMB 64,093 thousand in the previous year, marking an increase of 88.3%[16] - Revenue from neurovascular intervention products accounted for 66.9% of total sales, increasing by 46.7% year-on-year, driven by key products like the Silver Snake intracranial support catheter and the Phoenix intracranial PTA balloon dilation catheter[73] - Revenue from peripheral vascular intervention products surged by 88.2% year-on-year, contributing 33.1% to total sales, attributed to the rapid growth of products like the UltraFree drug-eluting PTA balloon[73] International Business - International business revenue reached RMB 11.5 million, marking an 84.2% increase compared to the same period in 2023, primarily from Europe and Asia[5] - The company is actively expanding its international presence, with dedicated resources for international expansion in R&D, regulatory affairs, and production[5] - The company has received approvals for its products in overseas markets, including the Jiao Long thrombectomy stent and intracranial thrombectomy catheter in regions such as the EU, UK, Turkey, South Africa, Argentina, and Russia[44] Product Development and Launches - The company has launched 44 products in the Chinese market, solidifying its leading position in the neurovascular and peripheral vascular intervention medical device industry[4] - The company launched 37 medical device products in the Chinese market since early 2021, averaging five new products every six months[6] - The company has a total of 63 products and candidates strategically positioned, with 44 products commercialized in China and eight products receiving CE marking in the European Economic Area[41] - The company has successfully launched several innovative products to meet unmet clinical needs, including the CRD thrombectomy stent and ZYLOX Penguin venous stent system[98] Research and Development - R&D expenses decreased by 22.4% to RMB 101.5 million in the first half of 2024 compared to the same period in 2023[7] - The company is actively engaged in research and development to enhance its product offerings[111] - The company is focused on enhancing operational efficiency while organically increasing revenue[36] Operational Efficiency - The gross margin remained stable at 71.3% in the first half of 2024, attributed to continuous optimization of production and supply chain[7] - Sales and distribution expenses as a percentage of total revenue decreased from 32.6% in the first half of 2023 to 21.9% in the first half of 2024[7] - Administrative expenses decreased by 13.4% to RMB 43.6 million, with the percentage of total revenue dropping significantly from 21.9% to 11.9%[80] Corporate Governance and Shareholder Information - The company is committed to maintaining high standards of corporate governance and has adopted practices in line with the Corporate Governance Code[102] - The board has been authorized to repurchase up to 32,461,974 H shares, representing 10% of the total issued H shares as of June 6, 2023, with 108,000 shares repurchased during the reporting period[100] - The total cost for the repurchased shares amounted to HKD 971,090, with a maximum price of HKD 9.5 per share[101] - The company does not plan to declare any interim dividends for the reporting period[106] Market Trends and Future Outlook - The company anticipates that the revenue from unfulfilled contracts will be recognized within one year, indicating a positive outlook for future earnings[17] - The company plans to continue expanding its market share in the neurovascular and peripheral vascular interventional device industry, leveraging its strong commercialization and distribution capabilities[96] - Significant progress has been made in international markets, with ongoing efforts to enhance sales outside of China and strengthen partnerships with local doctors and distributors[97]

| --- | --- | --- | |-------|-------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | 即时点评 | 神经、外周介入龙头，业绩持续快速增长 | | | 归创通桥-B（2190.HK） | 2024-07-30 星期二 | | | | 事件： | | | | 公司盈利预告： 2024 上半年营业收入不少于 3.6 亿，与 2023 年同期 | | | | 相比，收入从人民币 2.3 亿元增加了不少于 56.5%。公司净利润不少 | | | | 于人民币 50.0 百万元。 | | | | 点评观点： | | | | ➢ 业绩快速增长 | | | 相关报告 | 公司是国内在神经和外周血管介入医疗器械领域的领导者，集研产销 ...

Investment Rating - The report assigns an initial investment rating of "Buy" for the company [1]. Core Insights - The company is positioned in two high-potential sectors: neurointervention and peripheral intervention, entering a product harvest phase with a comprehensive product ecosystem [1]. - The neurointervention market is expected to exceed 30 billion yuan in five years, with the company actively increasing its market share through competitive pricing strategies [1]. - The company has achieved significant revenue growth, with a projected revenue of 7.57 billion yuan in 2024, reflecting a year-on-year increase of 43.4% [1][3]. Summary by Sections Company Overview - The company, established in 2012, is a leader in the domestic neuro and peripheral vascular intervention medical device sector, offering a comprehensive range of products [7]. - It has developed a robust product pipeline with 43 products approved by NMPA and 8 by CE, with plans to enter the US market [7][20]. Financial Performance - The company reported revenues of 528 million yuan in 2023, a 58% increase year-on-year, and is expected to turn profitable in 2024 [13][3]. - The adjusted net profit for 2023 was 7.03 million yuan, marking the first profitable year [13]. Market Position and Strategy - The company has a complete product ecosystem in neurointervention, with a focus on innovative products that have gained market recognition [20]. - It is expanding its market presence through strategic partnerships and product approvals, including recent approvals for new peripheral intervention products [21]. Growth Projections - Revenue is projected to grow significantly, with estimates of 7.57 billion yuan in 2024, 10.19 billion yuan in 2025, and 13.51 billion yuan in 2026, indicating a strong growth trajectory [3]. - The company aims to maintain a high gross margin above 70%, with continuous improvements in operational efficiency [17].

Market Performance and Growth - The company has received approval for 43 products in the Chinese market, achieving a 72.2% annualized growth over the past three years, with nearly 300,000 products in use across various hospitals[11]. - Revenue increased from RMB 7.8 million in 2022 to RMB 14.3 million in 2023, indicating a significant growth trajectory in international sales[14]. - The company views 2024 as a pivotal year for growth, aiming to leverage its competitive advantages to achieve profitability and scale[14]. - In 2023, the company's revenue reached RMB 527,754 thousand, a significant increase of 58% compared to RMB 334,090 thousand in 2022[16]. - Revenue from regions outside China reached RMB 14.3 million in 2023, representing an 83.1% increase compared to 2022[32]. - The company reported a compound annual growth rate (CAGR) of 72.2% in total revenue from 2021 to 2023, indicating strong market expansion in the neurovascular and peripheral vascular intervention device sectors[86]. Product Development and Innovation - The company aims to expand its product registrations to over 20 countries/regions, with plans to enter Southeast Asia, South America, and North Asia in 2024[14]. - The company has established a strategic layout for its product pipeline, with various products expected to be commercialized in the coming years[35]. - The company launched the ZYLOX Penguin stent system in 2023, featuring innovative design elements aimed at reducing thrombosis risk and improving vascular compliance[27]. - The company launched five new products in the peripheral venous disease treatment sector over the past 24 months, strengthening its market presence and distribution partnerships[30]. - The company is actively promoting the BADDASS thrombectomy technique, which combines a balloon guide with a large bore distal access catheter[41]. - The company expects to expand the indications for the UltraFree DCB, currently enrolling patients for clinical trials on below-the-knee applications[50]. Financial Performance - The gross profit before tax loss was RMB 384,988 thousand, with a gross margin of approximately 73%[16]. - The adjusted profit for the year was RMB 7,033 thousand, a turnaround from a loss of RMB 25,877 thousand in 2022[16]. - Non-current assets increased to RMB 1,658,520 thousand in 2023, up from RMB 1,191,097 thousand in 2022, reflecting a growth of 39.2%[17]. - Current assets decreased to RMB 1,717,181 thousand in 2023 from RMB 2,062,599 thousand in 2022, a decline of 16.7%[17]. - Total assets amounted to RMB 3,375,701 thousand in 2023, compared to RMB 3,253,696 thousand in 2022, indicating a growth of 3.7%[17]. - The company's gross profit increased by 52.4% to RMB 385.0 million, while the gross profit margin slightly decreased to 72.9% from 75.6% in the previous year[63]. Operational Efficiency and Cost Management - The company emphasizes continuous cost optimization while maintaining investment in innovation to provide affordable medical products[13]. - The company has invested in strategic digitalization and automation to enhance operational efficiency and R&D capabilities[12]. - The company is focused on improving its operational mechanisms and reporting tools to ensure better coordination across its business[12]. - Sales and distribution expenses as a percentage of total revenue decreased from 41.9% in 2022 to 31.0% in 2023, reflecting enhanced sales and marketing efficiency[26]. - R&D expenses as a percentage of total revenue decreased from 69.9% in 2022 to 49.5% in 2023, while the absolute amount increased from RMB 233.5 million to RMB 261.0 million[26]. Strategic Partnerships and Collaborations - The company has established a robust ecosystem of partnerships with doctors, hospitals, distributors, and suppliers to enhance its competitive advantage[11]. - A strategic partnership with Avinger Inc. was established in March 2024 to introduce innovative peripheral vascular devices to the Chinese market, enhancing the company's product portfolio[28]. - The company is actively evaluating opportunities to enter other potential markets and plans to allocate more resources to strengthen its international business[32]. Risks and Challenges - The company faces significant risks related to product commercialization and competition in the medical device market[19]. - Future growth is heavily dependent on the successful development and commercialization of candidate products[19]. Shareholder Structure and Management - The company has a significant concentration of ownership, with several shareholders holding over 20% of the H shares[130]. - The company is under the control of a concert party agreement, which influences decision-making and management[125]. - The company has established employee incentive platforms that hold significant shares in the company[125]. - The company’s senior management team includes experienced professionals with extensive backgrounds in finance and regulatory affairs[100]. Compliance and Governance - The company has not identified any significant violations of laws and regulations related to its business, including environmental, health and safety, and employment laws[107]. - The audit committee, consisting of three independent non-executive directors, reviewed the audited consolidated financial statements for the year ending December 31, 2023[197]. - The independent auditor, PwC, will be reappointed for the next fiscal year, pending shareholder approval at the upcoming annual general meeting[198].

浦银国际研究 公司研究 | 医药行业 归创通桥（2190.HK）：2023 年收入增 胡泽宇，CFA 速略超预期，密网支架有望年内获批 浦 医药分析师 银 ryan_hu@spdbi.com 公司2023年收入增速略超预期，并在经调整净利口径下实现首次盈利。 (852) 2808 6446 国 毛利率虽受集采降价影响略有下滑，且趋势或将持续，但我们认为集采 际 带来的规模效应将逐步体现，叠加经营效率提升，公司净利率仍可在 2025 年提升至约 14%。京津冀“3+N”集采于 3 月 19 日公示拟中标结 阳景 果，公司整体中标情况理想，核心产品取栓支架、颅内支持导管均中选， 首席医药分析师 市占率有望进一步提升。2024 年预计仍有 2 款神经介入和 3 款外周介 Jing_yang@spdbi.com 入产品获批，其中包含密网支架及外周血管缝合器 2款重点产品，后续 (852) 2808 6434 有望进一步拉动公司收入增长。维持“买入”评级及目标价 16.0 港元。 收入增速略超预期，毛利率因集采稍有下滑。2023 年收入同比+58%  2024年3月22日 至人民币 5.3 亿元（vs公司指引>5 亿 ...

Financial Performance - For the year ended December 31, 2023, the company reported revenue of RMB 527.8 million, a 57.6% increase from RMB 334.1 million in 2022[2]. - The gross profit margin decreased to 72.9% in 2023 from 75.6% in 2022, while the adjusted net profit for the year was RMB 7.0 million, a significant improvement from a loss of RMB 25.9 million in 2022[2][3]. - The company reported a revenue of RMB 527.754 million for the year ended December 31, 2023, an increase from RMB 334.090 million in 2022, representing a growth of approximately 58%[8]. - Gross profit for the year was RMB 384.988 million, compared to RMB 252.669 million in the previous year, indicating a significant increase of around 52%[8]. - The company recorded a significant operating loss of RMB 156.523 million for the year, an improvement from a loss of RMB 208.398 million in 2022[8]. - The company reported a net loss attributable to equity holders of RMB 78,734,000 for the year ended December 31, 2023, compared to a net loss of RMB 113,555,000 in 2022, reflecting a reduction in losses of approximately 31%[29]. - The basic and diluted loss per share for the year ended December 31, 2023, was RMB 0.24, compared to RMB 0.34 in 2022, showing an improvement in per-share performance[29]. - The company reported a cumulative loss of RMB 481,907 thousand in 2023, compared to RMB 403,173 thousand in 2022, indicating an increase in losses of approximately 19.5%[9]. Revenue Growth - Sales revenue from neurovascular intervention products increased by 63.6% in 2023, driven by the recognition of product quality and clinical performance[3]. - Sales revenue from peripheral vascular intervention products rose by 43.7% in 2023, attributed to expanded market access and enhanced distribution networks[3]. - Revenue from product sales for the year ended December 31, 2023, was RMB 527,754 thousand, up from RMB 334,090 thousand in 2022, indicating a growth of approximately 58%[18]. - Revenue from China for the year ended December 31, 2023, was RMB 513,482,000, up from RMB 326,294,000 in 2022, indicating a growth of about 57%[22]. - Revenue from regions outside of China reached RMB 14.3 million in 2023, representing an 83.1% increase compared to 2022[43]. Cost and Expenses Management - The percentage of sales and distribution expenses to total revenue decreased from 41.9% in 2022 to 31.0% in 2023, reflecting improved sales and marketing efficiency[4]. - Research and development expenses as a percentage of total revenue decreased from 69.9% in 2022 to 49.5% in 2023, with R&D spending increasing from RMB 233.5 million to RMB 261.0 million[4]. - Administrative expenses as a percentage of total revenue fell from 32.7% in 2022 to 21.6% in 2023, indicating enhanced operational efficiency[4]. - The company's cost of sales for the year ending December 31, 2023, was RMB 142.8 million, a 75.3% increase from RMB 81.4 million in the previous year, primarily due to increased raw material costs and employee benefits[70]. Product Development and Innovation - The company plans to launch innovative products, including the ZYLOX Penguin stent system, to strengthen its market position in the peripheral vascular intervention segment[4]. - The company launched five new products in the peripheral venous disease treatment sector over the past 24 months, enhancing its competitive advantage in the market[6]. - The company is actively upgrading existing products to meet diverse clinical needs, launching second-generation products for several existing offerings[5]. - The company has successfully launched innovative products to meet unmet clinical needs, including the CRD and ZYLOX Penguin systems[91]. - The company has a comprehensive product portfolio in peripheral vascular intervention, covering stents, balloons, catheters, and filters[56]. Market Expansion - The company expanded its international footprint to 19 countries, with revenue from outside China reaching RMB 14.3 million, a growth of 83.1% compared to 2022[7]. - The company plans to continue expanding its product offerings in the neurovascular and peripheral vascular intervention medical device market, focusing on innovation and market penetration strategies[12]. - The company is actively assessing opportunities to enter other potential markets and plans to allocate more resources to strengthen its international business[43]. - The company has entered into a series of licensing and investment agreements with Avinger Inc., committing to invest a total of $15.0 million in two phases, contingent upon achieving certain milestones[99]. Financial Position - Total assets as of December 31, 2023, amounted to RMB 3,375,701 thousand, an increase from RMB 3,253,696 thousand in 2022, reflecting a growth of approximately 3.7%[9]. - Non-current assets increased significantly to RMB 1,658,520 thousand in 2023 from RMB 1,191,097 thousand in 2022, representing an increase of about 39.2%[9]. - The company's total equity decreased slightly to RMB 3,047,385 thousand in 2023 from RMB 3,094,153 thousand in 2022, a decline of about 1.5%[9]. - Current liabilities rose to RMB 317,783 thousand in 2023, compared to RMB 152,084 thousand in 2022, marking an increase of approximately 109%[11]. - The total liabilities increased to RMB 233,886,000 in 2023 from RMB 126,652,000 in 2022, representing an increase of approximately 84%[33]. Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the annual financial performance for the year ended December 31, 2023, and found it compliant with relevant accounting standards[100]. - The auditor, PwC, confirmed that the figures in the preliminary announcement align with the audited consolidated financial statements for the year ended December 31, 2023[101]. - The board of directors has decided not to recommend a final dividend for the year ended December 31, 2023, compared to no dividend in 2022[102].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 230.1 million, representing a 50.7% increase from RMB 152.7 million in the same period of 2022[6]. - Gross profit for the same period was RMB 170.6 million, up 47.8% from RMB 115.5 million year-on-year, with a gross margin of 74.2%[6]. - The company reported a loss of RMB 35.5 million for the period, a 39.2% increase compared to a loss of RMB 25.5 million in 2022[6]. - The adjusted net loss, excluding share-based compensation, was RMB 5.5 million, compared to a profit of RMB 8.6 million in the previous year[6]. - Revenue from neurovascular intervention products accounted for 72.1% of total revenue, while peripheral vascular intervention products contributed 27.9%[8]. - Revenue from international markets reached RMB 6.2 million in the first half of 2023, a 128.7% increase compared to the same period in 2022[13]. - The company reported a total revenue from external customers for the six months ended June 30, 2023, was RMB 230,131,000, compared to RMB 152,743,000 for the same period in 2022, indicating an overall growth[125]. Market and Industry Insights - The Chinese neuro and peripheral vascular interventional device market is still in its early development stage, with an estimated treatment penetration rate of only 0.2% compared to 5.4% in the U.S.[7]. - The government is actively supporting the development of the neuro and peripheral vascular interventional device market, with over 603 advanced stroke centers established nationwide[7]. - The estimated number of large vessel occlusion AIS-EVT cases in China could reach approximately 300,000, assuming a treatment suitability rate similar to that of the U.S.[7]. - The market for neuro and peripheral vascular interventional devices continues to show significant growth potential due to an aging population and increasing disease prevalence[7]. - The company anticipates that multiple policies will enable leading domestic enterprises with comprehensive product portfolios to gain more market share[7]. Product Development and Innovation - The company has developed a total of 57 products and candidates, including 28 approved in China and 8 in Europe[15]. - The company expects to have an additional 13 neurovascular intervention products approved by the National Medical Products Administration by the end of 2025[18]. - The company has successfully launched the Jiao Long® intracranial thrombectomy stent (CRD), intracranial support catheter, and balloon guiding catheter as a complete solution for treating intracranial ischemic stroke[19]. - The company plans to launch the second-generation intracranial aneurysm embolization coil in 2023, offering more specifications and sizes[23]. - The company is actively promoting the BADDASS thrombectomy technique, which combines multiple devices for enhanced treatment[19]. Research and Development - Research and development expenses rose by 39.1% to RMB 1,308 million from RMB 940 million for the six months ended June 30, 2022, driven by increased testing and clinical trial costs[42]. - The company plans to utilize RMB 941.3 million (40% of the net proceeds) for further upgrading R&D facilities and office expansions by 2025[71]. - The company aims to increase market share through differentiated product positioning and commercialization capabilities in the neurovascular and peripheral vascular interventional device sectors[64]. Financial Position and Cash Flow - As of June 30, 2023, the company's cash and cash equivalents amounted to RMB 1,306.9 million, an increase of 8.4% from RMB 1,205.3 million as of December 31, 2022[53]. - The company's net current assets as of June 30, 2023, were RMB 1,696.1 million, a decrease of 11.2% from RMB 1,910.5 million as of December 31, 2022[56]. - The company reported a net cash used in operating activities for the six months ended June 30, 2023, was RMB (18,523) thousand, an improvement compared to RMB (50,166) thousand for the same period in 2022[106]. - The net cash generated from investing activities was RMB 111,010 thousand for the six months ended June 30, 2023, compared to a net cash used of RMB (290,476) thousand in the same period of 2022, indicating a significant turnaround[106]. Shareholder Structure and Governance - The company has confirmed compliance with the "Standard Code" during the reporting period by all directors and supervisors[68]. - The company has established a governance structure where shareholders act in concert to control decision-making and management[5]. - The company is actively managing its shareholder agreements to ensure alignment in strategic decisions[83]. - The overall ownership percentages suggest a concentrated control structure, which may impact future corporate strategies and decisions[83]. Employee Incentives and Stock Options - The total number of shares available for grant under the employee incentive plans decreased from 2,522,813 shares on January 1, 2023, to 892,529 shares as of June 30, 2023[8]. - The company has granted stock options to key personnel, including Dr. Zhao Zhong with a maximum of 718,282 domestic shares and Dr. Pan Ning with a maximum of 586,597 domestic shares, subject to vesting conditions[8]. - The company aims to achieve specific revenue targets over the next three years as part of its employee incentive plans[90]. Future Outlook - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share by 2025[183]. - Future guidance estimates revenue growth of 20-25% for the second half of 2023, driven by new product launches[183]. - The company is exploring potential acquisitions to strengthen its product portfolio and market position[183].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 230.1 million, an increase of 50.7% compared to RMB 152.7 million for the same period in 2022[2] - Gross profit for the same period was RMB 170.6 million, up 47.8% from RMB 115.5 million year-on-year, with a gross margin of 74.2%[2] - The company recorded a net loss of RMB 35.5 million for the period, compared to a loss of RMB 25.5 million in the same period last year, reflecting a 39.2% increase in losses[2] - Operating loss for the first half of 2023 was RMB 74.133 million, compared to a loss of RMB 61.376 million in the same period of 2022[7] - The company reported a net loss attributable to equity holders of RMB 35.514 million for the first half of 2023, compared to RMB 25.504 million in the same period of 2022[7] - Basic and diluted loss per share for the six months ended June 30, 2023, was RMB 0.11, compared to RMB 0.08 for the same period in 2022, reflecting an increase in losses[25] - The adjusted loss for the period was RMB 55.22 million, compared to a loss of RMB 86.41 million for the same period in 2022, with non-IFRS adjusted profit/loss amounting to RMB 299.92 million for the current period[73] Revenue Breakdown - Revenue from regions outside China reached RMB 62 million in the first half of 2023, an increase of 128.7% compared to the same period in 2022[6] - Revenue from neurovascular intervention products accounted for 72.1% of total revenue, while peripheral vascular intervention products contributed 27.9%[34] - Sales revenue from neurovascular intervention products increased by 48.7% year-on-year, driven by the recognition of key products such as the Silver Snake® intracranial support catheter[34] - Sales revenue from peripheral vascular intervention products rose by 55.9% year-on-year, attributed to efforts in market access and distribution network expansion[34] Product Development and Market Expansion - The company has established a distribution network covering over 3,300 hospitals across 31 provinces and municipalities in China as of June 30, 2023[3] - The company has 28 products approved by the National Medical Products Administration and eight products with CE marking, making it one of the leading companies in the vascular intervention medical device industry in China[5] - The company launched the Silver Snake® Plus distal access catheter in February 2023, enhancing its product offerings for interventional procedures[4] - The company has expanded its product commercialization to 19 overseas countries, including Germany, France, and Italy[6] - The company is exploring new business models beyond traditional distribution, including providing OEM services in emerging markets like India[6] - The company is focused on enhancing R&D and commercialization efficiency to maintain a competitive edge in the neurovascular and peripheral vascular intervention market[36] Financial Position and Assets - Non-current assets increased to RMB 1,405.297 million as of June 30, 2023, compared to RMB 1,191.097 million at the end of 2022[8] - Current assets totaled RMB 1,891.801 million as of June 30, 2023, down from RMB 2,062.599 million at the end of 2022[8] - Trade receivables as of June 30, 2023, were RMB 964 thousand, slightly down from RMB 1,014 thousand as of December 31, 2022, indicating a minor decrease in receivables[26] - Trade payables increased to RMB 16,348 thousand as of June 30, 2023, compared to RMB 10,735 thousand as of December 31, 2022[30] - The group's cash and cash equivalents were RMB 1,306.9 million, an increase of 8.4% from RMB 1,205.3 million as of December 31, 2022[75] - The group's total borrowings as of June 30, 2023, amounted to RMB 9 million, with an asset-liability ratio of 0.63%, an increase of 39.7% from 0.45% as of December 31, 2022[77] - The group's net current assets as of June 30, 2023, were RMB 1,696.1 million, a decrease of 11.2% from RMB 1,910.5 million as of December 31, 2022[78] Research and Development - R&D expenses increased by 39.1% to RMB 130.8 million, driven by higher testing and clinical trial costs[65] - The company is enhancing its manufacturing capabilities through integrated R&D and manufacturing processes, which are expected to improve product quality and cost efficiency[6] - The company has initiated type testing for the balloon-covered stent system, with an expected launch in China by 2027[53] - The company is expanding its product pipeline with 11 candidate products in clinical stages and 14 in registration stages[37] Corporate Governance and Compliance - The board emphasizes the importance of good corporate governance and has adopted practices in line with the Corporate Governance Code, although there is a noted deviation regarding the roles of the chairman and CEO[86] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim financial information for the six months ending June 30, 2023[88] - The board does not recommend any interim dividend for the reporting period[89] Future Outlook - The company provided a future outlook, projecting a revenue growth of 25% for the next fiscal year, driven by new product launches and market expansion[95] - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[95] - A new product line is expected to launch in Q4 2023, anticipated to contribute an additional RMB 50 million in revenue[95] - The company is exploring potential acquisitions to enhance its product portfolio and market reach, with a budget of up to RMB 200 million allocated for this purpose[95]