Group 1 - The core point of the article is that Gaoshi Medical's subsidiary, Gaoshi Innovation Technology Co., Ltd., has received approval from the Jiangsu Provincial Drug Administration for its "fundus camera" medical device [1] - The fundus camera integrates an intelligent imaging system with innovative non-mydriatic high-definition imaging technology, achieving fully automated operation [1] - The fundus camera is suitable for screening, diagnosing, and long-term follow-up of various fundus diseases, including diabetic retinopathy, promoting the popularization of eye health screening [1]

Core Viewpoint - The announcement highlights that the company's wholly-owned subsidiary, Gaoshi Tailiang Medical Technology Co., Ltd., has received medical device registration approval from the Guangdong Provincial Drug Administration for its "artificial lens implantation system" [1] Group 1: Product Details - The artificial lens implantation system is designed for use in micro-incision cataract surgery, optimizing the surgical incision to less than 1.8mm, which minimizes corneal trauma and accelerates postoperative recovery [1] - The product is an original design by Gaoshi Tailiang and has been granted an invention patent [1] Group 2: Regulatory Approval - The approval from the Guangdong Provincial Drug Administration marks a significant milestone for the company, as it allows the commercialization of the new artificial lens implantation system [1] - This system is compared to the one approved in 2024, indicating advancements in surgical techniques and technology [1]

Core Viewpoint - The stock price of Gaoshi Medical (02407) experienced a significant decline of 15.99% on April 7 due to external factors, but has since begun a slow recovery, closing at HKD 6.05 on May 7, surpassing the closing price on April 6. However, the overall decline in April was 3.53%, underperforming the Hang Seng Healthcare sector, which saw a gain of 1.10% during the same period [1]. Group 1: Stock Performance and Market Context - The Hang Seng Index dropped 13.2% on April 7, marking the largest single-day decline since the Asian financial crisis, while the Hang Seng Healthcare Index fell by 19.01% [1]. - In the following 10 trading days, the Hang Seng Healthcare Index rebounded to 2978.74 points, outperforming Gaoshi Medical, attributed to active southbound capital providing liquidity [1][2]. - In April, the Hong Kong Stock Connect channel recorded a turnover of nearly HKD 2.3 trillion, accounting for 43.8% of the market's total turnover, with a net buy of over HKD 166.6 billion, setting a new monthly record [2]. Group 2: Impact of Stock Connect Removal - Gaoshi Medical's stock price recovery lagged behind the sector due to its removal from the Stock Connect, which took effect on March 10. Stocks added to the Stock Connect saw an average price increase of 0.72%, while those removed, including Gaoshi Medical, experienced an average decline of 14.24% [3]. - The average market capitalization of Gaoshi Medical during the review period was HKD 2.464 billion, falling short of the HKD 4 billion threshold by HKD 1.536 billion, leading to its exclusion from the Stock Connect [3]. Group 3: Financial Performance and Challenges - For the fiscal year 2024, Gaoshi Medical reported revenue of RMB 1.428 billion, a year-on-year increase of 1.6%, but a gross profit decline of 4.1% to RMB 663 million, with net profit attributable to shareholders dropping by 46.75% to RMB 92.394 million [8]. - The decline in profitability was attributed to factors such as exchange rate fluctuations and the implementation of national procurement policies for artificial crystals, resulting in a gross margin reduction [8]. - The company faced significant goodwill impairment due to poor performance of acquired companies, with cumulative impairments reaching RMB 23.257 million by the end of 2024 [9]. Group 4: Research and Development Investment - To enhance competitiveness, Gaoshi Medical increased its R&D expenditure by 48.29% to RMB 78.418 million in 2024, with R&D spending as a percentage of self-owned product revenue rising to 5.5% [10][11]. - Despite efforts to shift from distribution products to self-owned products, the revenue from distribution products increased to 68.55% in 2024, indicating challenges in optimizing the revenue structure [12].

Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 1,428.4 million, an increase of 1.6% compared to RMB 1,406.2 million for the year ended December 31, 2023[11]. - The net profit for the year ended December 31, 2024, was RMB 88.5 million, a decrease of 48.8% from RMB 172.9 million in 2023[11]. - Basic earnings per share for the year ended December 31, 2024, were RMB 0.63, down from RMB 1.17 in 2023[11]. - The board proposed a final dividend of HKD 0.3 per share for the year ended December 31, 2024, compared to HKD 1.1 per share in 2023[11]. - The company's gross profit for the same period was RMB 663.4 million, which is a decrease of 4.1% year-over-year[21]. - Sales cost rose by 7.1% from RMB 714.6 million to RMB 765.0 million, slightly outpacing revenue growth due to rising material costs and procurement prices[41]. - Gross profit decreased by 4.1% from RMB 691.6 million to RMB 663.4 million, with gross margin dropping from 49.2% to 46.4%[42]. - Other income and gains fell by 41.3% from RMB 45.0 million to RMB 26.4 million, primarily due to foreign exchange losses[43]. - The company recorded a net profit of RMB 88.5 million for the year ending December 31, 2024, down from RMB 172.9 million for the previous year[51]. Product Development and Innovation - The company has successfully launched three domestically developed single-focus intraocular lenses and is currently developing high-end domestic intraocular lenses[13]. - A new generation of dry eye examination products has been registered and officially launched for sale[13]. - The company is advancing AI diagnostic screening applications and smart manufacturing technologies in its product development[13]. - The company achieved MDR CE certification for its hydrophilic acrylic intraocular lens product line, marking a significant milestone[13]. - The company has established a "Global 4+2" R&D layout, with 265 R&D personnel, accounting for approximately 30% of total staff[28]. - R&D expenditure for the reporting period was RMB 78.4 million, representing 20.9% of proprietary product revenue, indicating a strong focus on innovation[28]. - The company aims to enhance its R&D capabilities, which accounted for 38.2% of the net proceeds allocation[119]. Market Expansion and Partnerships - The company has established exclusive distribution agreements with 16 out of 18 overseas brand partners, enhancing its product portfolio and market position[14]. - The company’s overseas business has expanded, participating in large-scale exhibitions with over 5,000 attendees and achieving MDR CE certification for its hydrophilic acrylic intraocular lens product line[33]. - The company’s products are now sold in 52 countries and regions, with its Roland products available in 33 countries[34]. - The company has established exclusive distribution agreements with 16 overseas brand partners, including a new partnership with South Korea's Sometech Inc. for 3D 4K digital ophthalmic surgical microscopes[31]. - The company aims to enhance its product offerings and expand its market presence in Asia and Europe, while optimizing management processes for improved efficiency[19]. Financial Position and Cash Management - As of December 31, 2024, the group's cash and cash equivalents amounted to RMB 421.4 million, a decrease of 31.9% from RMB 618.7 million as of December 31, 2023, primarily due to dividend payments of RMB 148.5 million and loan repayments of approximately RMB 109.7 million during the reporting period[64]. - The group's debt-to-asset ratio as of December 31, 2024, was 34.8%, down from 39.1% as of December 31, 2023[68]. - The group continues to maintain a strong cash flow and financial resources to support its operational and expansion plans[64]. - The group has implemented internal control measures to enhance cash management and reduce financial risks[64]. - The fair value financial assets decreased from RMB 175.6 million as of December 31, 2023, to RMB 97.7 million as of December 31, 2024, reflecting the company's focus on enhancing cash management efficiency and seeking high-return investment opportunities[52]. Employee and Management Structure - The total employee cost for the group for the year ended December 31, 2024, was RMB 375.2 million, compared to RMB 352.5 million for the year ended December 31, 2023, reflecting an increase of approximately 6.1%[140]. - The group had a total of 884 employees as of December 31, 2024, up from 869 employees as of December 31, 2023[140]. - The company emphasizes talent development and cultural construction as part of its strategic initiatives[80]. - The leadership team is well-educated, with degrees from prestigious institutions such as the University of Wisconsin-Madison and Peking University[81][88]. - The company has a strong focus on compliance and internal audit functions, overseen by Zhao Xinli as Chief Compliance Officer[79]. Governance and Compliance - The board consists of five executive directors, one non-executive director, and three independent non-executive directors, maintaining compliance with listing rules[194]. - The independent non-executive directors play a crucial role in providing unbiased opinions on the company's strategy and performance[197]. - The company has adopted a corporate governance code to ensure compliance and protect shareholder interests[187]. - The board has established three committees: audit, remuneration, and nomination, to oversee specific aspects of governance[193]. - The board confirmed the independence of all independent non-executive directors throughout the reporting period[133]. Shareholder Information - Major shareholders include GT HoldCo with 63,263,528 shares, representing 42.78% of the total issued share capital[161]. - OrbiMed Advisors III Limited and its affiliates collectively hold 18,039,426 shares, accounting for 12.20% of the total issued share capital[161]. - The company has maintained a minimum of 25% public shareholding throughout the reporting period[177]. - The company has sufficient financial resources to implement share repurchases while maintaining a sound financial position[165]. - The company repurchased a total of 82,500 shares during the reporting period, at a total cost of HKD 976,492, representing 0.056% of the total issued shares[165].

Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 1,428.4 million, an increase of 1.6% compared to RMB 1,406.2 million for the year ended December 31, 2023[2]. - The net profit for the year ended December 31, 2024, was RMB 88.5 million, a decrease of 48.8% from RMB 172.9 million recorded in 2023[2]. - Basic earnings per share for the year ended December 31, 2024, were RMB 0.63, down from RMB 1.17 in 2023[2]. - The gross profit for the year ended December 31, 2024, was RMB 663.4 million, a decrease of 4.1% from RMB 691.6 million in the previous year[6]. - The group achieved MDR CE certification for its hydrophilic acrylic intraocular lens product line, which is expected to lower costs and ensure long-term material supply[17]. - Total comprehensive income for the year was RMB 51,933,000, significantly lower than RMB 208,753,000 in 2023, a decline of approximately 75.1%[73]. - The company's total assets less current liabilities increased to RMB 2,054,497,000 in 2024 from RMB 1,952,050,000 in 2023, an increase of about 5.3%[75]. - Non-current liabilities rose to RMB 466,310,000 in 2024, compared to RMB 255,064,000 in 2023, reflecting an increase of approximately 83.0%[75]. - The group's total tax expense for the year 2024 is RMB 66,764,000, a decrease of 10.4% from RMB 74,821,000 in 2023[112]. - The effective tax rate for the group in 2024 is calculated at 43.0% based on the pre-tax profit of RMB 155,287,000, compared to 23.1% in 2023[113]. Revenue Breakdown - Revenue from the sale of ophthalmic medical consumables reached RMB 530.3 million, and revenue from technical services was RMB 226.5 million, both achieving historical highs[5]. - The company's proprietary products contributed RMB 375.8 million in revenue, a decrease of 1.6% from RMB 381.9 million in 2023[9]. - Technical services revenue increased by 8.3% to RMB 226.5 million, supported by a team of 133 engineers providing 24/7 service across Greater China[11]. - The self-owned products segment generated external sales of RMB 375,814,000, while the distribution products segment achieved RMB 819,321,000 in external sales[93]. - The technology services segment reported external sales of RMB 226,458,000, contributing to the overall revenue[93]. - Revenue from ophthalmic medical devices was RMB 664,878 thousand, down from RMB 680,271 thousand in 2023, representing a decrease of 2.0%[99]. - Revenue from ophthalmic medical consumables increased to RMB 530,257 thousand, up 3.9% from RMB 510,496 thousand in 2023[99]. Research and Development - The company has expanded its research and development capabilities with a "global 4+2" layout, including multiple platforms in China and two in Europe[4]. - R&D expenditure for the reporting period was RMB 78.4 million, representing 20.9% of self-owned product revenue, driven by increased investment in R&D projects to enhance independent innovation capabilities[12]. - Research and development expenses increased to RMB 78,418,000 in 2024 from RMB 52,883,000 in 2023, representing a rise of approximately 48.5%[71]. - The company plans to continue its focus on research and development in ophthalmic medical devices and consumables, aiming for market expansion in China and other regions[76]. - The group has a "global 4+2" R&D layout with 265 R&D personnel, accounting for approximately 30.0% of total employees, and an average of over ten years of industry experience[12]. Corporate Governance - The company has established an audit committee consisting of two independent non-executive directors and one non-executive director to oversee financial reporting and risk management[68]. - The company has committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[62]. - The company will continue to review and monitor its corporate governance practices to ensure compliance with applicable codes[65]. - The roles of Chairman and CEO were separated on March 25, 2024, with the appointment of a new CEO, Liu Xinwei[64]. - The company has a strong governance structure, including an audit committee and a board of directors to oversee its operations[140]. Market Expansion and Strategy - The group has established exclusive distribution agreements with 16 overseas brand partners, including a new partnership with South Korea's Sometech Inc. for 3D 4K digital ophthalmic surgical microscopes[15]. - The group’s products are sold in 52 countries and regions, with a focus on expanding market presence and product registration in new countries[17]. - The company is focused on developing and manufacturing its own products, particularly in the field of ophthalmology, including artificial lenses for cataract surgery[136]. - The company has a strategic plan to expand its market presence in the Greater China region, which includes mainland China, Hong Kong, Macau, and Taiwan[135]. - The company is actively engaging with key opinion leaders (KOLs) in the medical field to enhance its market influence and product adoption[136]. Financial Management - Cash and cash equivalents decreased by 31.9% from RMB 618.7 million as of December 31, 2023, to RMB 421.4 million as of December 31, 2024, primarily due to operational expenditures[43]. - The company has a total of RMB 507,728,000 in interest-bearing bank and other borrowings as of December 31, 2024, down from RMB 618,562,000 in 2023, a decrease of 18%[132]. - The company has secured a financing agreement for EUR 52.5 million to refinance existing loans, with a maturity date of December 22, 2027[133]. - The company maintains a diversified customer base for trade receivables, minimizing credit risk concentration[125]. - The company has implemented strict credit control measures to manage overdue receivables effectively[125]. Employee and Talent Management - As of December 31, 2024, the group had a total of 884 employees, an increase from 869 employees as of December 31, 2023[60]. - The total employee cost for the year ended December 31, 2024, was RMB 375.2 million, compared to RMB 352.5 million for the year ended December 31, 2023, reflecting an increase of approximately 6.1%[60]. - The company has adopted a share incentive plan to recognize and reward eligible participants for their contributions, aimed at attracting top talent[61]. - The company has implemented a training management system to enhance employee skills and support career development[60]. Dividend and Shareholder Returns - The company plans to propose a final dividend of HKD 0.3 per share for the year ended December 31, 2024, down from HKD 1.1 per share in 2023[2]. - The proposed final dividend per ordinary share for 2024 is HKD 0.30, significantly lower than HKD 1.10 in 2023, resulting in a total dividend payout of HKD 44,366,000 compared to HKD 162,767,000 in the previous year[112]. - The group paid a final dividend of RMB 148.5 million for the year ending December 31, 2023, and repaid loans totaling approximately RMB 109.7 million[44].

Financial Performance - For the six months ended June 30, 2024, the company recorded revenue of RMB 642.0 million, a decrease of 8.4% compared to RMB 700.7 million for the same period in 2023[23]. - The net profit for the same period was RMB 26.9 million, down 75.6% from RMB 110.4 million in the prior year[23]. - Basic earnings per share for the six months ended June 30, 2024, were RMB 0.19, compared to RMB 0.75 for the same period in 2023[23]. - Total revenue for the six months ended June 30, 2024, was RMB 529.1 million, a decrease of 10.8% from RMB 593.2 million for the same period in 2023[39]. - Gross profit decreased by 16.1% to RMB 298.4 million for the six months ended June 30, 2024, compared to RMB 355.6 million for the same period in 2023, with a gross margin decline from 50.8% to 46.5%[40]. - The technical services segment generated revenue of RMB 110.0 million, representing a year-on-year increase of 6.5%[29]. - Profit before tax decreased to RMB 58,395,000, a decline of 58.9% from RMB 142,229,000 in the previous year[100]. - Total comprehensive income for the period was RMB 7,110,000, down from RMB 147,170,000 in the same period last year[103]. Research and Development - Research and development expenses increased by 34.5% to RMB 35.1 million, representing 5.5% of revenue, up from 3.7% in the previous year[23]. - The company has expanded its R&D capabilities with platforms in four cities in China and two in Europe, covering a global sales network across 51 countries[25]. - The company has established a "global 4+2" R&D layout with a total of 261 R&D personnel, representing approximately 29.9% of total employees[30]. - Research and development expenses rose by 34.5% to RMB 35.1 million, reflecting ongoing investments in product development and team expansion[47]. - Research and development expenses increased to RMB 35,140,000, up 34.6% from RMB 26,105,000 in the previous year[123]. Product and Market Development - The company has a product portfolio of 150 items, including 65 proprietary products, and has established exclusive distribution agreements with 16 overseas brand partners[25][28]. - Revenue contribution from proprietary products was RMB 178.0 million, accounting for 33.6% of total sales, an increase from 32.7% in the previous year[27]. - The company is focusing on the development of surgical treatment products, particularly surgical equipment and consumables[35]. - The company has expanded its distribution network, partnering with 18 overseas brands, including exclusive agreements with 16 partners[33]. - The company aims to enhance its operational efficiency and strengthen brand and talent development as part of its long-term strategy[35]. Financial Position and Cash Flow - Cash and cash equivalents decreased by 11.6% from RMB 618.7 million as of December 31, 2023, to RMB 546.8 million as of June 30, 2024, mainly due to repayment of domestic loans[61]. - The debt-to-asset ratio increased from 39.1% as of December 31, 2023, to 40.2% as of June 30, 2024[65]. - Total liabilities decreased to RMB 1,251,830,000 from RMB 1,146,731,000 at the end of 2023, indicating a shift in financial structure[105]. - Operating cash flow for the six months ended June 30, 2024, was RMB (10,829) thousand, a significant decrease from RMB 111,187 thousand in the same period of 2023[109]. - The company reported a net cash outflow from financing activities of RMB (59,304) thousand in 2024, compared to RMB (70,433) thousand in 2023, indicating a decrease in outflow of about 16%[110]. Shareholder Information - The largest shareholder, GT HoldCo, holds 42.75% of the issued share capital, amounting to 63,263,528 shares[90]. - As of June 30, 2024, the company had a total of 147,970,369 issued ordinary shares[2]. - The board of directors did not recommend an interim dividend for the six months ended June 30, 2024, consistent with the previous year[77]. - The company has adopted a share incentive plan to recognize and reward contributions from eligible participants, with no rewards granted under this plan as of the interim report date[72]. Foreign Exchange and Risk Management - The company reported a foreign exchange loss of RMB 198 million due to fluctuations in the Euro exchange rate during the reporting period[67]. - The company has no foreign currency hedging policy in place and continues to monitor foreign exchange risks[67]. - The company has implemented a credit verification process for all traders engaging in credit transactions[68]. Employee and Management Information - The total employee cost for the reporting period was RMB 184 million, an increase from RMB 169.6 million for the same period last year[71]. - The company had a total of 872 employees as of June 30, 2024, compared to 869 employees as of December 31, 2023[71]. - Total remuneration for key management personnel reached RMB 4,263,000 for the six months ended June 30, 2024, up from RMB 3,632,000 in 2023, reflecting a growth of 17.4%[162]. Acquisitions and Investments - The company completed the acquisition of Teleon Holding B.V. for €24.25 million, enhancing its product portfolio[174]. - The group’s investment in private equity funds amounted to RMB 178,696,000, with an expected return rate between 2.5% and 4.5% annually[143].

Financial Performance - For the six months ended June 30, 2024, the company recorded revenue of RMB 642.0 million, a decrease of 8.4% compared to RMB 700.7 million in the same period of 2023[2]. - The net profit for the same period was RMB 26.9 million, down 75.6% from RMB 110.4 million in 2023[2]. - Basic earnings per share were RMB 0.19, compared to RMB 0.75 in the same period of 2023[2]. - Gross profit fell from RMB 355.6 million for the six months ended June 30, 2023, to RMB 298.4 million for the same period in 2024, a decrease of 16.1%[17]. - The gross margin decreased from 50.8% to 46.5%, mainly due to increased raw material and labor costs, changes in product sales mix, and a significant price drop for artificial lenses starting May 2024[18]. - Total comprehensive income for the period was RMB 7,110 thousand, significantly lower than RMB 147,170 thousand in 2023[60]. - The company's total equity was RMB 1,555,941 thousand, down from RMB 1,696,986 thousand at the end of 2023[63]. Revenue Breakdown - Revenue contribution from proprietary products was RMB 178.0 million, accounting for 33.6% of total sales, an increase from 32.7% in the previous year[6]. - Revenue from distribution products was RMB 351.0 million, a decrease of 12.1% due to ongoing impacts from domestic medical service policies and macroeconomic conditions[7]. - Revenue from self-owned products was RMB 178,005,000, down from RMB 193,868,000, representing a decline of 8.9%[67]. - Revenue from distribution products was RMB 351,048,000, a decrease of 12.1% from RMB 399,365,000[67]. - Revenue from ophthalmic medical devices was RMB 273,009,000, down from RMB 337,863,000, a decrease of 19.3%[70]. - Revenue from technical services increased to RMB 110,047,000, up from RMB 103,325,000, marking a growth of 6.6%[70]. Research and Development - Research and development expenses increased by 34.5% to RMB 35.1 million, representing 5.5% of revenue, up from 3.7% in 2023[2]. - The company's R&D expenditure reached RMB 35.1 million, a year-on-year increase of 34.5%, accounting for 19.7% of self-owned product revenue[9]. - The company has accelerated the development of domestic artificial lenses, obtaining medical device registration certificates ahead of schedule[4]. - The company has established a global R&D layout of "4+2" with 261 R&D personnel, representing approximately 29.9% of total employees[9]. - The company is investing €5 million in R&D for the development of advanced ophthalmic devices[99]. Expenses and Costs - Sales and distribution expenses slightly decreased by 4.5% to RMB 115.5 million, while the percentage of these expenses to revenue increased from 17.3% to 18.0%[21]. - Administrative expenses increased by 17.8% to RMB 73.6 million, mainly due to staff expansion in administrative departments[22]. - Financing costs decreased by 13.1% to RMB 20.6 million, attributed to the repayment of domestic loans and lower interest rates on new loans[23]. - Other expenses rose significantly from RMB 1.9 million to RMB 12.0 million, mainly due to increased inventory impairment provisions and foreign exchange losses[25]. Inventory and Assets - Inventory increased by 11.6% to RMB 366.7 million, leading to an increase in inventory turnover days from 159 to 187 days[29]. - Non-current assets totaled RMB 1,421,150 thousand as of June 30, 2024, compared to RMB 1,452,881 thousand at the end of 2023[61]. - Current assets amounted to RMB 1,386,621 thousand, slightly down from RMB 1,390,836 thousand at the end of 2023[61]. - Trade receivables, net of impairment, amounted to RMB 143,783,000 as of June 30, 2024, compared to RMB 146,543,000 as of December 31, 2023[87]. Liabilities and Financing - The group's interest-bearing bank and other borrowings amounted to RMB 568.2 million as of June 30, 2024, including short-term borrowings of RMB 216.2 million and long-term borrowings of RMB 352.0 million[38]. - The debt-to-asset ratio increased from 39.1% as of December 31, 2023, to 40.2% as of June 30, 2024[40]. - The company plans to utilize a financing agreement of EUR 52.5 million to refinance existing loans, with a maturity date set for December 22, 2027[92]. Market and Strategic Initiatives - The company plans to enhance its product offerings in surgical treatment, focusing on surgical equipment and consumables[13]. - The company aims to strengthen its market presence in Asia and Europe while balancing domestic and international business growth[13]. - Market expansion efforts are focused on the Greater China region, with a target of increasing market share by 10%[97]. - The company has completed the acquisition of Teleon Holding B.V. for €24.25 million, enhancing its product portfolio[98]. - The company plans to enhance its distribution network in Europe, aiming for a 15% increase in sales through new partnerships[99]. Shareholder Returns and Dividends - The board does not recommend an interim dividend for the six months ended June 30, 2024, consistent with the previous period[49]. - The company announced a proposed final dividend of HKD 1.10 per share for the year ended December 31, 2023[82]. Audit and Compliance - The audit committee consists of two independent non-executive directors and one non-executive director, ensuring compliance with financial reporting and risk management[54]. - The interim condensed consolidated financial statements for the six months ended June 30, 2024, were reviewed by the external auditor, Ernst & Young[56].

Financial Performance - The company's revenue for the year ended December 31, 2023, was RMB 1,406.2 million, an increase of 12.2% compared to RMB 1,253.8 million for the year ended December 31, 2022[8]. - The net profit for the year ended December 31, 2023, was RMB 172.9 million, a significant improvement from a net loss of RMB 352.7 million in 2022, and an increase of 9.9% compared to the adjusted net profit of RMB 157.3 million for 2022[8]. - Basic earnings per share for the year ended December 31, 2023, were RMB 1.17, compared to a basic loss per share of RMB 3.61 for the year ended December 31, 2022[8]. - The gross profit for the year was RMB 691.6 million, an increase of 10.6% compared to the previous year[14]. - The company's revenue increased by 12.2% from RMB 1,253.8 million in 2022 to RMB 1,406.2 million in 2023, driven by higher sales of ophthalmic medical consumables and equipment[30]. - The gross profit increased by 10.6% from RMB 625.3 million in 2022 to RMB 691.6 million in 2023, with a slight decrease in gross margin from 49.9% to 49.2% due to rising material costs[33]. Dividend and Shareholder Information - The board proposed a final dividend of HKD 1.1 per share for the year ended December 31, 2023, compared to no dividend in 2022[8]. - The annual general meeting for shareholder approval of the proposed dividend is scheduled for May 30, 2024[8]. - The expected distribution date for the approved dividend is July 26, 2024[8]. - The company’s distributable reserves as of December 31, 2023, were approximately RMB 855.4 million, an increase from RMB 822.2 million as of December 31, 2022[100]. Research and Development - The company has been engaged in research and development of a wide range of ophthalmic medical equipment and consumables for over 20 years[3]. - The company has established a global "4+2" R&D layout, with domestic bases in four Chinese cities and two overseas in the Netherlands and Germany[14]. - The company plans to increase investment in R&D and production, focusing on expanding its product range and enhancing its presence in high-end medical devices[11]. - The company's R&D expenditure was RMB 52.9 million, accounting for 13.9% of proprietary product revenue, a 28.7% increase from RMB 41.1 million in 2022[22]. - The company has established a "Global 4+2" R&D layout with 240 R&D personnel, representing approximately 28% of total employees, and significant investments in various ophthalmic products[22]. Product Development and Market Strategy - The company launched several new products, including a domestically produced rigid gas permeable contact lens and an automated fundus camera, which have shown strong market demand[14]. - The company aims to leverage its extensive experience and product range to capture growth opportunities in the ophthalmic sector[3]. - The company plans to expand its market presence and enhance its product offerings through new technology development and strategic initiatives[3]. - The company is focusing on expanding its presence in Asia and Europe while maintaining its leadership position in the Chinese market[29]. Sales and Revenue Breakdown - Sales of ophthalmic medical equipment reached RMB 680.3 million, while sales of consumables amounted to RMB 510.5 million, both showing growth compared to the previous year[15]. - Revenue from the company's distribution products amounted to RMB 808.9 million, reflecting an 8.6% increase from RMB 744.8 million in 2022, driven by product updates and enhanced marketing efforts[19]. - The revenue contribution from the company's proprietary products reached RMB 381.9 million, accounting for 32.1% of total sales, an increase from 29.3% in 2022, with a year-on-year growth of 23.9%[18]. - The technical services segment generated revenue of RMB 209.2 million, representing a 10.0% year-on-year increase, with over 26,000 service instances provided during the reporting period[21]. Operational and Financial Management - The company has a strong focus on compliance and internal audit, led by Mr. Zhao as the Chief Compliance Officer[68]. - The company’s financial management is overseen by Ms. Li, who has over 21 years of experience in accounting and finance[70]. - The company has maintained a robust cash flow and financial resources to support its operational and expansion needs[56]. - The company recorded income tax expenses of RMB 74.8 million for the year ended December 31, 2023, compared to RMB 77.6 million in 2022[42]. Corporate Governance and Leadership - The company has adopted a corporate governance code to maintain high standards of corporate governance and protect shareholder interests[132]. - The board consists of five executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2023[138]. - The independent non-executive directors play a crucial role in providing impartial views on the company's strategy and performance[141]. - The company has established three board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee to oversee specific aspects of its affairs[137]. Social Responsibility and ESG Commitment - The company is committed to fulfilling social responsibilities and promoting sustainable growth, as detailed in the Environmental, Social, and Governance report[90]. - The company has identified 21 ESG issues categorized into environmental, social, and governance aspects, with high importance placed on product quality and safety, compliance employment, employee training and development, supply chain management, responsible marketing, information security and privacy protection, and anti-corruption[197]. - The company emphasizes the importance of anti-corruption and risk management in its operations, particularly in compliance with regulations and environmental management[196]. Employee and Talent Management - The total employee cost amounted to RMB 352.5 million, an increase from RMB 288.4 million as of December 31, 2022, reflecting a growth of approximately 22.3%[108]. - The number of employees increased to 869 as of December 31, 2023, up from 790 as of December 31, 2022, indicating a growth of over 10%[108]. - The company emphasizes employee training and development, continuously enhancing its training management system to support long-term high-quality growth[108]. Risk Management and Compliance - The company has established a risk management and internal control system to ensure high levels of corporate governance and to identify and mitigate potential risks[175]. - The board reviewed the effectiveness of the risk management and internal control system for the year ending December 31, 2023, ensuring compliance with established procedures and standards[176]. - The internal audit function plays a key role in monitoring the company's internal governance and reports significant issues to the audit committee[176].

Financial Performance - For the year ended December 31, 2023, the company's revenue was RMB 1,406.2 million, an increase of 12.2% compared to RMB 1,253.8 million for the year ended December 31, 2022[2]. - The net profit for the year ended December 31, 2023, was RMB 172.9 million, a significant recovery from a net loss of RMB 352.7 million in the previous year[2]. - The basic earnings per share for the year ended December 31, 2023, was RMB 1.17, compared to a basic loss per share of RMB 3.61 for the year ended December 31, 2022[2]. - The gross profit for the year ended December 31, 2023, was RMB 691.6 million, reflecting a 10.6% increase from RMB 625.3 million in the previous year[4]. - The company's revenue increased by 12.2% from RMB 1,253.8 million in 2022 to RMB 1,406.2 million in 2023, driven by higher sales of ophthalmic medical consumables and equipment[18]. - Sales of distributed products reached RMB 808.9 million in 2023, up from RMB 744.8 million in 2022, while proprietary products sales increased from RMB 308.3 million to RMB 381.9 million[19]. - Gross profit increased by 10.6% from RMB 625.3 million in 2022 to RMB 691.6 million in 2023, with a slight decrease in gross margin from 49.9% to 49.2%[21]. - The total comprehensive income for the year was RMB 208,753 thousand, compared to a loss of RMB 328,210 thousand in 2022[63]. Revenue Breakdown - Revenue from proprietary products reached RMB 381.9 million, accounting for 32.1% of total sales, up from 29.3% in the previous year[7]. - Revenue from distribution products was RMB 808.9 million, an increase of 8.6% from RMB 744.8 million in the previous year[8]. - The technical services segment generated revenue of RMB 209,234 thousand, up from RMB 190,084 thousand in 2022, showing a growth of approximately 10.6%[84]. - Revenue from the Greater China region was RMB 1,122,722 thousand, up from RMB 1,001,358 thousand in 2022, reflecting a growth of about 12.1%[81]. Research and Development - The R&D team has 240 personnel, accounting for approximately 28% of total employees, with R&D expenditure of RMB 52.9 million, representing 13.9% of proprietary product revenue, an increase of 28.7% from RMB 41.1 million in 2022[10]. - The company aims to increase R&D investment and enhance cooperation with upstream partners to achieve over 50% revenue contribution from proprietary products[17]. - The company’s R&D efforts include the development of an automatic fundus camera and optical biometer, with the automatic fundus camera showing increasing market demand[11]. - Research and development expenses amounted to RMB 52,883,000, up from RMB 41,089,000 in the previous year, marking a growth of 28.7%[92]. Expenses and Costs - The cost of sales rose by 13.7% from RMB 628.4 million in 2022 to RMB 714.6 million in 2023, primarily due to increased raw material costs for proprietary products and higher procurement prices for imported products[20]. - Sales and distribution expenses surged by 32.5% from RMB 187.8 million in 2022 to RMB 248.8 million in 2023, attributed to the resumption of offline marketing activities post-pandemic[23]. - Administrative expenses decreased by 11.5% from RMB 146.2 million for the year ended December 31, 2022, to RMB 129.4 million for the year ended December 31, 2023, primarily due to the absence of listing expenses in 2023[24]. - Financing costs increased by 18.5% from RMB 42.7 million for the year ended December 31, 2022, to RMB 50.6 million for the year ended December 31, 2023, mainly due to rising interest rates on bank and other borrowings[25]. Dividends and Shareholder Returns - The company plans to distribute a final dividend of HKD 1.1 per share for the year ended December 31, 2023, subject to shareholder approval[2]. - The company proposed a final dividend of HKD 1.10 per share for the year ending December 31, 2023, compared to no dividend in 2022, amounting to HKD 162,767,000[102]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and has adopted a corporate governance code[54]. - The chairman and CEO roles are held by the same individual, which the board believes does not affect the balance of power and authority[55]. - The company has established an audit committee to oversee financial reporting and risk management processes[58]. Market Expansion and Strategy - The company has expanded its distribution network, partnering with 19 overseas brands, including Haag-Streit, to enhance its product offerings and market reach[12]. - The company is expanding its market presence in the Greater China region, targeting a 25% increase in market share by 2025[125]. - The company plans to strengthen its market presence in Asia and Europe while balancing domestic and international business growth[17]. Assets and Liabilities - Non-current assets increased to RMB 1,452,881 thousand as of December 31, 2023, from RMB 1,391,756 thousand in 2022[64]. - The company's total equity increased to RMB 1,696,986 thousand as of December 31, 2023, compared to RMB 1,486,685 thousand in 2022[66]. - The total amount of borrowings as of December 31, 2023, was RMB 618,562,000, compared to RMB 701,588,000 in 2022, showing a decrease of 11.8%[118]. Future Outlook - The company has provided a revenue guidance of $85 million for the fiscal year 2024, which reflects a projected growth of approximately 13%[125]. - New product launches are expected to contribute an additional $10 million in revenue in 2024, focusing on innovative medical devices[125]. - The board of directors remains optimistic about the long-term growth trajectory, citing strong fundamentals and a robust pipeline of new products[125].

Financial Performance - The company reported revenue of RMB 700.7 million for the six months ended June 30, 2023, representing a 21.2% increase from RMB 577.9 million in the same period of 2022[19]. - The net profit for the company was RMB 110.4 million, compared to a net loss of RMB 53.3 million in the same period of 2022, marking a significant turnaround[19]. - Basic earnings per share increased to RMB 0.75, compared to a basic loss per share of RMB 0.54 in the same period of 2022[19]. - The gross profit for the six months ended June 30, 2023, was RMB 355.6 million, reflecting a 26.5% increase from the previous year[20]. - The company's other income and gains rose from RMB 13.9 million to RMB 21.8 million, mainly due to foreign exchange gains of RMB 7.3 million in the first half of 2023 compared to a loss of RMB 84.6 million in the same period of 2022[36]. - The company reported a total comprehensive income of RMB 147,170 thousand for the period, compared to a loss of RMB 65,286 thousand in the same period last year[85]. - The company reported a net cash flow from operating activities of RMB 111,187,000 for the six months ended June 30, 2023, compared to RMB 75,268,000 for the same period in 2022, representing a year-over-year increase of about 47.8%[92]. - The company reported a pre-tax profit of RMB 142,229,000 for the six months ended June 30, 2023, compared to a loss of RMB 32,147,000 in the same period of 2022[114]. Research and Development - Research and development expenses were RMB 26.1 million, up 16.5% from RMB 22.4 million in the same period of 2022, maintaining a stable ratio of approximately 3.7% of revenue[19]. - The company has established a "global 4+2" R&D layout with seven R&D and production platforms in China and two overseas in the Netherlands and Germany[20]. - The company continues to invest in R&D and has appointed Dr. Alexey Nikolaevich Simonov as the Chief Technology Officer[20]. - R&D expenditure was RMB 26.1 million, accounting for 3.7% of total revenue, a 16.5% increase from RMB 22.4 million in the same period last year[26]. - The company aims to enhance its proprietary product revenue share and increase investment in surgical treatment products while maintaining its leading position in diagnostic products[29]. - The company is advancing the registration of the new generation ATOS femtosecond corneal refractive surgery system and the ANTERION multimodal imaging platform[28]. - The company has invested 10 million euros in R&D for the development of innovative glaucoma treatments[151]. Sales and Market Presence - Sales of proprietary products reached RMB 193.9 million, accounting for 32.7% of total product sales, setting a new record[20]. - Revenue from proprietary products reached RMB 193.9 million, accounting for 32.7% of total sales, a 36.5% increase from RMB 142.0 million in the same period last year[23]. - Revenue from distribution products was RMB 399.4 million, representing 67.3% of total sales, up 17.9% from RMB 338.7 million year-over-year[24]. - The company serves over 4,000 end customers in China, including more than 1,200 tertiary hospitals and 1,500 secondary hospitals[20]. - The company has partnered with 19 overseas brand partners, with 17 having exclusive distribution agreements, including two new partners added during the reporting period[20]. - The company is expanding its market presence in Asia, targeting a 25% increase in market share by the end of 2024[151]. Expenses and Costs - Selling and distribution expenses increased by 34.2% to RMB 120.9 million, representing 17.3% of revenue, up from 15.6% in the previous year[37]. - Administrative expenses decreased by 10.5% to RMB 62.5 million, primarily due to the absence of listing expenses incurred in the previous year[38]. - Financing costs slightly increased from RMB 20.7 million to RMB 23.7 million, attributed to higher interest expenses on domestic loans and preferred financing loans[39]. - The cost of goods sold increased to RMB 345,096,000, up from RMB 296,633,000, representing a growth of approximately 16.3% year-over-year[106]. - Employee benefits expenses amounted to RMB 48,467,000 for the six months ended June 30, 2023, compared to RMB 44,297,000 for the same period in 2022, reflecting an increase of about 4.9%[107]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 1,969,859 thousand, an increase from RMB 2,225,467 thousand as of December 31, 2022[86]. - Current liabilities increased to RMB 878,342 thousand from RMB 492,623 thousand at the end of the previous year[86]. - Cash and cash equivalents decreased by 10.9% from RMB 721.5 million as of December 31, 2022, to RMB 642.5 million as of June 30, 2023, due to the use of operating surplus funds for investments in financial assets[55]. - Trade receivables decreased from RMB 166.4 million as of December 31, 2022, to RMB 158.9 million as of June 30, 2023, due to improved collection management[49]. - Trade payables increased from RMB 68.7 million as of December 31, 2022, to RMB 96.6 million as of June 30, 2023, primarily due to preemptive stockpiling after the lifting of pandemic control measures[50]. - The debt-to-asset ratio improved from 50.9% as of December 31, 2022, to 46.1% as of June 30, 2023[57]. Corporate Governance and Management - The audit committee consists of two independent non-executive directors and one non-executive director, ensuring compliance with applicable corporate governance codes[64]. - The company has adopted a code of conduct for securities trading, ensuring all directors complied with the standards during the reporting period[65]. - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2023[66]. - The company has no other disclosure obligations under the Listing Rules apart from what is disclosed in the interim report[79]. - The company has maintained a stable relationship with its related parties, with minimal transactions reported in the current period compared to the previous year[137]. Future Outlook - The company plans to focus on obtaining regulatory approvals for new products and expanding its market presence in the second half of 2023[30]. - The company aims to leverage its product line and brand advantages to ensure favorable bidding outcomes for its ophthalmic products[30]. - The company plans to increase its workforce by 15% to support its expansion and R&D efforts[151]. - A strategic acquisition of a technology firm is anticipated to enhance the company's R&D capabilities and product offerings[150].