Financial Performance - Revenue for the fiscal year 2023 increased to RMB 232.3 million, representing a year-on-year growth of 26.9%[2] - Gross profit rose to RMB 163.8 million, with a gross margin of 70.5%, up 2.6 percentage points from the previous year[2] - Pre-tax loss narrowed to RMB 102.9 million, a decrease of 48.9% compared to the previous year[2] - Basic and diluted loss per share improved to RMB (2.47) from RMB (5.24) year-on-year[3] - Total revenue from medical device sales for 2023 was RMB 232,344,000, an increase of 27% compared to RMB 183,032,000 in 2022[25] - Revenue from the mainland China market was RMB 231,273,000 in 2023, up from RMB 182,909,000 in 2022, reflecting a growth of 26%[50] - The company reported a pre-tax loss of RMB 102,920,000 for 2023, an improvement from a loss of RMB 201,249,000 in 2022, indicating a reduction of about 48.9%[61] - The basic and diluted loss per share for 2023 was RMB 2.47, compared to RMB 5.24 in 2022, reflecting a significant decrease in losses per share[77] Expenses and Cost Management - Sales and distribution expenses decreased by 8.4% to RMB 153.9 million, while R&D costs reduced by 19.4% to RMB 123.8 million[1] - Employee costs amounted to RMB 439 million, representing 35.5% of total costs, compared to RMB 519 million or 33.8% in the previous year[109] - The gross profit margin increased by 2.6 percentage points to 70.5%, with sales and distribution expenses and administrative expenses decreasing to 66.2% of revenue, down from 91.8% in 2022[112] - R&D expenses decreased from RMB 153.7 million for the year ended December 31, 2022, to RMB 123.8 million for the year ended December 31, 2023, primarily due to a reduction in the number of projects and R&D team size[158] Product Development and Innovation - Neurointerventional devices contributed 42.3% of total sales, with revenue from these products growing by 62.9% to RMB 98.2 million[2] - The company plans to launch at least five major neurointerventional devices in the next 24 months, including drug-coated balloons and stents[2] - Research and development costs amounted to RMB 123.8 million, aimed at supporting the diversification of neurointerventional devices, with at least five major products expected to launch in the next 24 months[113] - The core product, Captor® thrombectomy device, was the first in China to receive NMPA approval and has been upgraded to include various models for different vessel diameters and thrombus sizes[93] - The intracranial drug-eluting balloon catheter is in the NMPA registration phase after completing clinical trials, having received green channel approval[96] - The company has a total of 195 registered patents, including 87 invention patents, and 135 pending patent applications, indicating a strong focus on innovation[125] Market Expansion and Sales Channels - The company has obtained CE or FDA certification for several products and is expanding its sales channels in ten other countries[2] - The company has established a distribution network covering over 1,500 hospitals across all provinces in China, excluding Hong Kong, Macau, and Taiwan[101] - The company is evaluating opportunities for overseas marketing of its products, including potential registration applications in the United States[93] Financial Position and Assets - Total current assets decreased to RMB 1,005.4 million from RMB 1,132.0 million in the previous year[5] - The company’s net assets amounted to RMB 1,075.6 million, down from RMB 1,165.5 million in the previous year[5] - Cash and bank balances as of December 31, 2023, were RMB 622.2 million, a decrease of RMB 247.9 million from RMB 870.1 million as of December 31, 2022[139] - The net current assets as of December 31, 2023, were RMB 945.6 million, down from RMB 1,064.5 million as of December 31, 2022[162] Tax and Regulatory Matters - The company has been recognized as a "High-tech Enterprise" since November 2021, allowing it to enjoy a preferential tax rate of 15% for three years starting from 2021[34] - The company has been recognized as a key industry enterprise in the China (Shanghai) Free Trade Zone, benefiting from a preferential income tax rate of 15% for five years starting from 2020[58] - The company has a 200% super deduction rate for eligible R&D expenses for the fiscal year ending December 31, 2023, enhancing its tax efficiency[59] - The company has not been affected by the Pillar Two model rules introduced by the OECD, as it does not fall within the scope of these regulations[22] Corporate Governance and Compliance - The audit committee consists of three members, including two independent non-executive directors, ensuring compliance with the listing rules[200] - The company has confirmed adherence to the standard code of conduct during the reporting period[200] - The company has confirmed no non-compliance issues among senior management during the reporting period[200] - The company is committed to maintaining internal controls and risk management practices as discussed with the audit committee[200] Future Plans and Strategic Focus - The company plans to develop innovative medical devices in high-growth potential markets to establish a competitive product portfolio beyond its neuro-interventional business[152] - The company aims to enhance its manufacturing capabilities to ensure a reliable supply of products[104] - The company plans to enhance its brand recognition as a comprehensive provider of neurointerventional solutions and aims to accelerate the commercialization of its products[129] - The company has set a timeline for the completion of its core product R&D and marketing by December 31, 2025[195]

Financial Performance - Revenue for the six months ended June 30, 2023, increased by 42.9% to RMB 109,586 thousand compared to RMB 76,713 thousand in the same period last year[26] - Gross profit rose by 56.7% to RMB 79,718 thousand, with gross margin improving by 6.4 percentage points to 72.7%[26] - The company's pre-tax loss decreased by 18.4% to RMB (54,636) thousand compared to RMB (66,985) thousand in the same period last year[26] - Revenue for the first half of 2023 reached RMB 109.6 million, a year-on-year increase of 42.9%, driven by strong sales of acute ischemic stroke (AIS) thrombectomy devices, intracranial artery stenosis treatment devices, and innovative access devices[28] - Gross profit increased by RMB 28.9 million, with the gross margin rising to 72.7%, while the sales, distribution, and administrative expense ratio decreased from 96.8% to 65.2%, narrowing the pre-tax loss to RMB 54.6 million[29] - Revenue increased by 42.9% from RMB 76.7 million in the six months ended June 30, 2022, to RMB 109.6 million in the six months ended June 30, 2023, driven by growth in sales of AIS thrombectomy devices, intracranial artery stenosis treatment devices, and innovative access devices[63] - Gross profit rose to RMB 79.7 million in the six months ended June 30, 2023, from RMB 50.9 million in the same period in 2022, with gross margin improving from 66.3% to 72.7% due to increased production and improved manufacturing processes[65] - Net loss narrowed to RMB 54,338 thousand in H1 2023, a 18.7% improvement from RMB 66,815 thousand in H1 2022[185] - Basic and diluted loss per share improved to RMB 1.42 in H1 2023 from RMB 1.75 in H1 2022[185] Product Development and Pipeline - The company's core product, Captor™ thrombectomy device, has been upgraded with nine different models and is being evaluated for new indications and overseas market expansion[13] - The intracranial drug-eluting balloon (DEB) has completed clinical trials and submitted for NMPA registration, with green channel qualification obtained[15] - The company has obtained NMPA approval for its embolic coils, which are used in the treatment of hemorrhagic stroke[16] - The company's spring coil embolization assist stent has completed clinical trials and submitted for NMPA registration, also with green channel qualification[17] - The company's left atrial appendage occluder, a core product for stroke prevention, received NMPA approval and began sales in the second half of 2022[19] - The company has 21 medical devices approved by the NMPA and 2 approved by the FDA, with several advanced pipelines, including drug-eluting balloons and flow diverters, in late-stage development[29][30] - The company’s pipeline includes products for acute ischemic stroke treatment, ischemic stroke prevention, hemorrhagic stroke treatment, and interventional access, with a focus on expanding its product portfolio[31][43] Research and Development - R&D expenses for the reporting period amounted to RMB 69.9 million, focusing on advancing pipelines for stroke and pulmonary embolism treatment[29] - R&D costs increased to RMB 69.9 million in the six months ended June 30, 2023, from RMB 60.9 million in the same period in 2022, primarily due to higher raw material and consumable costs for trial production of pipeline products[67] - R&D expenses increased to RMB 69,850 thousand in H1 2023, up 14.7% from RMB 60,908 thousand in H1 2022[185] Sales and Distribution - The company has a broad sales network covering all provinces in China, excluding Hong Kong, Macau, and Taiwan[22] - The company’s sales network and hospital penetration strategy aim to enhance brand competitiveness in the Chinese neurointerventional market, leveraging the VBP and DRG/DIP payment reforms[28] - Sales and distribution expenses increased to RMB 41.7 million in the six months ended June 30, 2023, from RMB 36.0 million in the same period in 2022, driven by higher market development costs[86] Production and Operations - The company has three production bases in Shanghai and Nanjing, ensuring sufficient product supply[20] - The company’s production process optimization and cost-control measures have improved quality stability and operational efficiency[29] - As of June 30, 2023, the company’s contracted but not yet provided for plant and equipment amounted to RMB 9.11 million, compared to RMB 7.53 million at the end of 2022[40] Financial Position and Capital Expenditures - Cash and bank balances decreased to RMB 694.6 million as of June 30, 2023, from RMB 870.1 million as of December 31, 2022[70] - Capital expenditures totaled approximately RMB 47.2 million in the six months ended June 30, 2023, compared to RMB 23.8 million in the same period in 2022, mainly for the purchase of land use rights[90] - The company's net current assets stood at RMB 978.2 million as of June 30, 2023, down from RMB 1,064.5 million as of December 31, 2022[89] - The company's debt-to-equity ratio decreased to 3.9% as of June 30, 2023, from 4.3% as of December 31, 2022, with no outstanding borrowings as of June 30, 2023[88] Corporate Governance and Shareholder Information - The maximum number of H shares that can be granted under the 2021 H Share Incentive Plan is 3,000,000 H shares, representing approximately 9.5% of the company's H shares and 7.7% of the total issued share capital as of the report date[106] - As of January 1, 2023, and June 30, 2023, the total number of shares available for grant under the 2021 H Share Incentive Plan was 2,717,300 shares and 2,493,840 shares, respectively[106] - The company's global offering in 2021 raised a net amount of approximately HKD 1,014.8 million[109] - The company had 453 full-time employees as of June 30, 2023[116] - The 2021 H Share Incentive Plan allows for two types of awards: (i) three-year awards, which should be granted by December 31, 2024, and vest at the end of the third full fiscal year after grant (for up to 2,700,000 H shares), and (ii) one-year awards, which should vest by June 30 of the year following the grant year (with up to 100,000 H shares in 2022 and up to 300,000 H shares annually thereafter)[121] - The company has no significant contingent liabilities as of June 30, 2023[114] - The company faces foreign exchange risk due to bank cash denominated in USD and HKD, but currently has no foreign exchange hedging policy[115] - The 2021 H Share Incentive Plan is effective for ten years from November 1, 2021, and will remain in effect for any unvested awards granted before its expiration[120] - The company's directors and senior management's compensation policy is determined based on their responsibilities and market conditions, with discretionary and performance bonuses linked to the group's overall performance and individual performance[116] - The company's H shares were first listed on the Main Board of the Hong Kong Stock Exchange on August 20, 2021[109] - The company allocated HKD 459.7 million for the R&D, production, and marketing of its core products, with HKD 223.4 million utilized as of June 30, 2023, leaving a balance of HKD 236.3 million[129] - HKD 404.9 million was planned for the R&D and product registration of other pipeline products, with HKD 185.7 million utilized as of June 30, 2023, and a remaining balance of HKD 219.2 million[129] - HKD 48.7 million was fully utilized for enhancing R&D capabilities and expanding the product portfolio through internal research as of June 30, 2023[129] - HKD 101.5 million was allocated for working capital and general corporate purposes, fully utilized as of June 30, 2023[129] - The total funds raised from the IPO amounted to HKD 1,014.8 million, with HKD 559.3 million utilized as of June 30, 2023, and a remaining balance of HKD 455.5 million[129] - The company granted awards under the 2021 H Share Incentive Plan, with a fair value of approximately RMB 2.96 million, and 100% of the awards will vest by December 31, 2025, subject to performance conditions[150] - The company's independent auditor, Ernst & Young, reviewed the interim financial information for the six months ended June 30, 2023, in accordance with Hong Kong Standard on Review Engagements 2410[135] - The company's directors and senior management held significant equity interests, with Wang Guohui holding 8.21% of non-listed shares and 20.99% of H shares as of June 30, 2023[144] - The company did not purchase, sell, or redeem any of its listed securities during the six months ended June 30, 2023[130] - The company adopted the Standard Code as the code of conduct for directors, supervisors, and senior management regarding the trading of the company's securities[131] - The company does not recommend paying an interim dividend for the six months ended June 30, 2023 (no interim dividend was paid for the six months ended June 30, 2022)[153] - The company's Board of Directors and senior management have complied with the standard code of securities transactions during the six months ended June 30, 2023[154] - Wang Guohui serves as both the Chairman and CEO of the company, deviating from the corporate governance code, but the Board believes this structure enhances leadership and strategic planning efficiency[156] - The Audit Committee and management confirm that the interim financial results for the six months ended June 30, 2023 comply with relevant accounting standards and regulations[157] - Feng Xiangqian was appointed as the Chairman of the Nomination Committee, effective March 20, 2023[159] - Wang Guohui directly holds 1,915,690 non-listed shares and 1,915,690 H shares, with additional interests through related entities[169] - Zhang Yanxia holds 3,188,110 non-listed shares (8.21%) and 8,152,618 H shares (20.99%) through spousal interests[171] - Shanghai Zandaqian Enterprise Management Consulting Center holds 496,183 non-listed shares (1.28%) and 4,777,225 H shares (12.30%) through controlled corporation interests[171] - Ningbo Meishan Bonded Port Area Xinwei Investment Management Partnership holds 776,237 non-listed shares (2.00%) and 1,459,703 H shares (3.76%) as beneficial owner[171] - Ningbo Meishan Bonded Port Area Kaiyuan Investment Management Partnership holds 1,277,192 H shares (3.29%) as beneficial owner[171] - Shanghai Weijun Enterprise Management Consulting Partnership holds 2,800,000 H-shares, representing 7.21% of the total issued shares[174] - Chai Yanpeng holds 1,566,488 non-listed shares, representing 4.03% of the total issued shares[174] - Ningbo Tongchuang Suwei Investment Partnership holds 869,330 non-listed shares, representing 2.24% of the total issued shares[174] - SDIC Chuanghe National Emerging Industry Venture Capital Fund holds 906,220 non-listed shares, representing 2.33% of the total issued shares[174] - Temasek Life Sciences Private Limited holds 1,627,907 H-shares, representing 4.19% of the total issued shares[174] - LYFE Columbia River Limited holds 152,599 non-listed shares, representing 0.39% of the total issued shares[174] - LYFE Ohio River Limited holds 49,147 non-listed shares, representing 0.13% of the total issued shares[174] - Raritan River Limited holds 65,116 non-listed shares, representing 0.17% of the total issued shares[174] - LYFE Capital Fund III (Dragon), L.P. holds 201,746 non-listed shares, representing 0.52% of the total issued shares[174] - LYFE Capital Management Limited holds 13.64% of H-shares and 0.69% of non-listed shares[198] - LYFE Columbia River Limited directly holds 2,899,373 H-shares and 152,599 non-listed shares[199] - LYFE Ohio River Limited directly holds 933,784 H-shares and 49,147 non-listed shares[199] - Raritan River Limited directly holds 1,237,210 H-shares and 65,116 non-listed shares[199] - LYFE Capital Fund III (Dragon), L.P. directly holds 227,300 H-shares[199] Audit and Compliance - The interim financial report for 2023 has been reviewed and no material misstatements were found according to International Accounting Standard 34[183] - The company's independent auditor, Ernst & Young, reviewed the interim financial information for the six months ended June 30, 2023, in accordance with Hong Kong Standard on Review Engagements 2410[135] - The Audit Committee and management confirm that the interim financial results for the six months ended June 30, 2023 comply with relevant accounting standards and regulations[157] Strategic Plans and Market Expansion - The company plans to expand its brand as a comprehensive neurointerventional device provider, improve manufacturing capabilities, and develop innovative medical devices in high-growth potential markets[62] - Overseas revenue increased following the approval of multiple products by local regulatory authorities, supported by a broad sales network covering all provinces in mainland China, excluding Hong Kong, Macau, and Taiwan[28]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 109.586 million, representing a 42.9% increase compared to RMB 76.713 million for the same period in 2022[18]. - Gross profit increased to RMB 79.718 million, up 56.7% from RMB 50.865 million year-on-year, with a gross margin of 72.7%, an increase of 6.4 percentage points[18]. - The pre-tax loss narrowed to RMB 54.636 million, a decrease of 18.4% from RMB 66.985 million in the previous year[18]. - For the first half of 2023, the company recorded revenue of RMB 1,096 million, representing a year-on-year growth of 42.9%[33]. - The revenue increase was primarily driven by the continued growth in sales of acute ischemic stroke (AIS) thrombectomy devices and intracranial artery stenosis treatment devices[33]. - For the six months ended June 30, 2023, the company reported a loss attributable to ordinary shareholders of RMB 54,338 thousand, compared to a loss of RMB 66,815 thousand for the same period in 2022, representing a reduction in loss of approximately 18.7%[50]. - The gross profit for the six months ended June 30, 2023, increased by RMB 28.9 million, with a gross margin of 72.7%, compared to a gross margin of 96.8% in the previous period, indicating improved operational efficiency[55]. - Revenue from the sale of medical devices reached RMB 109,586 thousand for the six months ended June 30, 2023, up from RMB 76,713 thousand in the same period of 2022, reflecting an increase of approximately 43%[62]. Expenses and Cost Management - The company achieved a significant reduction in sales and distribution expenses and administrative expenses ratio from 96.8% to 65.2%[15]. - Research and development costs increased to RMB 69.850 million from RMB 60.908 million in the previous year[20]. - The cost of sales increased from RMB 25.8 million for the six months ended June 30, 2022, to RMB 29.9 million for the same period in 2023, consistent with revenue growth[91]. - Administrative expenses decreased from RMB 38.3 million for the six months ended June 30, 2022, to RMB 29.8 million for the same period in 2023, primarily due to a reduction in professional service fees[94]. - Sales and distribution expenses increased from RMB 36.0 million for the six months ended June 30, 2022, to RMB 41.7 million for the six months ended June 30, 2023, primarily due to increased market development costs[121]. - Employee costs for the six months ended June 30, 2023, were RMB 23.7 million, representing 33.9% of total costs, compared to RMB 24.0 million or 39.4% for the same period in 2022[144]. - The total costs for raw materials and consumables increased to RMB 18.2 million, accounting for 26.0% of total costs, compared to RMB 9.1 million or 14.9% in the previous year[144]. Assets and Liabilities - The total non-current assets as of June 30, 2023, amounted to RMB 215.892 million, an increase from RMB 180.537 million at the end of 2022[21]. - Cash and bank balances decreased to RMB 694.552 million from RMB 870.122 million at the end of 2022[21]. - Total current liabilities decreased from RMB 67,506 thousand as of December 31, 2022, to RMB 55,488 thousand as of June 30, 2023[38]. - The net value of current assets was RMB 978,215 thousand as of June 30, 2023, down from RMB 1,064,516 thousand as of December 31, 2022[38]. - Non-current liabilities totaled RMB 76,582 thousand as of June 30, 2023, a decrease from RMB 79,576 thousand as of December 31, 2022[38]. - The total equity attributable to owners of the parent company was RMB 1,117,525 thousand as of June 30, 2023, compared to RMB 1,165,477 thousand as of December 31, 2022[38]. - The company's debt was reduced to zero as of June 30, 2023, compared to RMB 50 million on December 31, 2022, resulting in a decrease in the debt-to-equity ratio from 4.3% to 3.9%[172]. Product Development and Approvals - The company has obtained NMPA approval for its core product, the left atrial appendage occluder, and began sales in the second half of 2022[5]. - As of the announcement date, the company has a total of 21 medical device products approved by NMPA and two products approved by FDA[34]. - The company has submitted registration applications for its intracranial drug-eluting balloon and embolization spring coil, which have received NMPA review green channel qualifications[80][108]. - The company is evaluating opportunities to expand the indications for its core product, the Captor™ thrombectomy device, and is considering overseas marketing opportunities in the US and Europe[59]. - Clinical trial patient recruitment for the flow diversion device has been completed, indicating progress in product development[179]. - The company has obtained priority approval qualifications for several products through its existing R&D platform, enhancing its competitive product portfolio[169]. Corporate Governance and Strategy - The company aims to enhance its brand competitiveness in the Chinese neurointerventional market through an extensive sales network covering all provinces outside Hong Kong, Macau, and Taiwan[3]. - The company aims to enhance its brand recognition as a comprehensive provider of neurointerventional solutions and expand the commercialization of its products[114]. - The company plans to apply for listing on the Shanghai Stock Exchange's Sci-Tech Innovation Board to further its growth strategy[114]. - The board consists of two non-executive directors, three independent non-executive directors, and three executive directors, ensuring a high level of independence[171]. - The company is committed to continuous review and monitoring of its corporate governance practices to enhance management standards and protect shareholder interests[185]. - The company has adopted the corporate governance code as its own to regulate governance practices, ensuring compliance with all relevant provisions[185]. Cash Flow and Future Outlook - The management expects to generate more cash from operating activities through increased sales of existing commercialized products and the launch of new products as the business develops and expands[147]. - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2023[10]. - The company has no plans to declare dividends for the six months ended June 30, 2023, consistent with the previous year[68]. - The group did not engage in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures as of June 30, 2023[125]. - There were no significant investments or capital asset acquisition plans authorized as of June 30, 2023[127].

Financial Performance - The company reported a revenue of RMB 183.0 million for the year ended December 31, 2022, representing a year-on-year growth of 103.2%[8] - Gross profit for the same period was RMB 124.3 million, compared to RMB 54.9 million in 2021[7] - The company incurred a pre-tax loss of RMB 201.2 million, slightly increasing from RMB 197.9 million in the previous year[7] - Revenue from thrombectomy and vascular stenosis treatment devices reached RMB 142.0 million, an increase of 57.7% year-on-year, while hemorrhagic, preventive, and access devices generated revenue of RMB 41.0 million[14] - Revenue increased by 103.2% from RMB 90.1 million in 2021 to RMB 183.0 million in 2022, driven by growth in ischemic stroke retrieval devices and intracranial artery stenosis treatment devices, which generated RMB 142.0 million, a 57.7% increase year-on-year[42] - Gross profit rose from RMB 55.0 million in 2021 to RMB 124.3 million in 2022, with gross margin improving from 61.0% to 67.9% due to increased production and mature manufacturing processes[44] - Other income and gains increased from RMB 18.3 million in 2021 to RMB 35.3 million in 2022, attributed to increased government subsidies, bank interest income, and foreign exchange gains[45] Research and Development - Research and development expenses reached approximately RMB 153.7 million, with seven new products approved by the National Medical Products Administration (NMPA) during the reporting period[9] - R&D expenses amounted to RMB 153.7 million, reflecting a year-on-year increase of 101.4% due to rapid progress in clinical trials of new products[14] - The company has initiated clinical trials for several innovative products, including cryoablation devices, endovascular robotic systems, and venous closure devices[15] - The intracranial drug-eluting balloon catheter has completed clinical trials and received NMPA registration application approval, qualifying for the NMPA green channel[27] - The company holds 100 registered patents, including 27 invention patents, 64 utility model patents, and 9 design patents, with an additional 214 pending patent applications[32] - The company has nearly 20 years of experience in the research and commercialization of medical devices[72] - The company is actively involved in the development and commercialization of drug-eluting stents (DES) and renal sympathetic denervation devices[76] Market Strategy and Growth - The company aims to enhance operational efficiency and cost structure to improve profit margins and cash flow[9] - Future growth is expected to be driven by continued focus on core neurointerventional medical devices and development of innovative pipelines in other therapeutic areas[9] - The company plans to leverage its R&D capabilities and sales channels for broader market penetration domestically and internationally[9] - The company is evaluating opportunities for expanding the indications and overseas marketing of the Captor device in the US and Europe[25] - The company aims to enhance its brand recognition as a comprehensive provider of neurointerventional devices and expand sales of commercialized products[40] - The company is expanding its market presence through strategic partnerships and investments in innovative medical technologies[80] - The company is expanding its market presence, planning to enter three new provinces in China by the end of 2023, which is expected to contribute an additional 10% to revenue[88] - A strategic acquisition of a smaller competitor is in progress, which is anticipated to enhance the company's market share by 5%[88] Corporate Governance - The company has adopted a corporate governance code to enhance management standards and protect shareholder interests[106] - The board consists of three executive directors, two non-executive directors, and three independent non-executive directors, ensuring a high level of independence[112] - The company has established effective mechanisms to support an independent board and independent viewpoints[109] - The company has a strategy to enhance training for new employees to better understand corporate culture and policies[103] - The company has a commitment to maintaining high standards of corporate governance and will continue to review its practices[108] - The company has established an audit committee, a remuneration committee, and a nomination committee to oversee its governance practices[126] - The board of directors is collectively responsible for guiding and supervising the company's affairs, delegating daily management to senior management[121] Environmental, Social, and Governance (ESG) - The report covers the company's performance in environmental, social, and governance (ESG) aspects for the year 2022, from January 1 to December 31[182] - The company emphasizes the importance of stakeholder communication for sustainable development, engaging with shareholders, customers, employees, suppliers, and the community[188] - Key performance indicators in the ESG report are aligned with the Hong Kong Stock Exchange guidelines, ensuring transparency and consistency[181] - The company is committed to integrating sustainable development principles into its daily operations and overall strategic direction[186] - The company has established a materiality matrix to assess the importance of various environmental and social issues to stakeholders and its operations[191] - Total emissions of waste gases in 2022 amounted to approximately 31.0 kg, with a density of 16.9 kg per RMB 100 million in revenue, a 12.0% decrease compared to 2021[196] Employee and Management - As of December 31, 2022, the company had 497 full-time employees, with competitive salary and stock incentive plans in place to enhance employee retention[63] - The management team includes professionals with extensive backgrounds in quality systems, regulatory management, and clinical trials[75][76] - The management team has a strong educational background, with degrees from prestigious institutions such as Tsinghua University and Shanghai University[75][77] - The management team emphasized a focus on sustainability, with plans to reduce operational costs by 15% through eco-friendly practices[88] - The company ensures that all directors participate in continuous professional development to enhance their knowledge and skills[125] Financial Position - Non-current assets totaled RMB 180.5 million, while current assets were RMB 1,132.0 million as of December 31, 2022[7] - The total equity amounted to RMB 1,165.5 million, down from RMB 1,372.6 million in 2021[7] - The total borrowings amounted to RMB 5 million as of December 31, 2022, with a debt-to-equity ratio of 4.3%[53] - As of December 31, 2022, the company's cash and bank balance was RMB 870.1 million, down from RMB 1,217.7 million as of December 31, 2021, representing a decrease of approximately 28.5%[54] - The company's net current assets as of December 31, 2022, were RMB 1,064.5 million, compared to RMB 1,276.9 million as of December 31, 2021, indicating a decline of about 16.6%[54] Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% and aiming to reach 1.875 billion RMB[88] - New product development is underway, with two innovative medical devices expected to launch in Q3 2023, targeting a market size of 500 million RMB[88] - The company aims to become a leader in the neuro-interventional medical device market in China[103] - The long-term business model focuses on continuously launching innovative medical devices to redefine care standards and improve patient outcomes[102]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容所產生或因依 賴該等內容而引致的任何損失承擔任何責任。 Shanghai HeartCare Medical Technology Corporation Limited 上 海 心 瑋 醫 療 科 技 股 份 有 限 公 司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：6609） 截至2022年12月31日止年度 全年業績公告 財務概要 截至2022年 截至2021年 12月31日 12月31日 止年度 止年度 同比變動 人民幣千元 人民幣千元 收益 183,032 90,089 103.2% 毛利 124,333 54,950 126.3% 毛利率 67.9% 61.0% 6.9個百分點 研發成本 153,693 76,306 101.4% ...

Financial Performance - Revenue for the first half of 2022 reached RMB 76.7 million, representing a year-on-year increase of 154.6%[11] - Gross profit for the same period was RMB 50.9 million, with a gross margin of 66.3%, up 3.1 percentage points from the previous year[11] - The pre-tax loss for the first half of 2022 was RMB 67.0 million, a decrease of 28.5% compared to the previous year[11] - Revenue increased by 154.6% from RMB 30.1 million to RMB 76.7 million for the six months ended June 30, 2022, primarily driven by sales growth of ischemic stroke thrombectomy devices and intracranial artery stenosis treatment devices[34] - Gross profit rose from RMB 19.1 million to RMB 50.9 million, with the gross margin improving from 63.2% to 66.3% due to increased production and maturing production processes[36] - The company reported a loss before tax of RMB 66,985 thousand, an improvement from a loss of RMB 93,671 thousand in the prior year[98] - The group reported a pre-tax loss of RMB 66,815,000 for the six months ended June 30, 2022, compared to a loss of RMB 91,702,000 for the same period in 2021, representing a 27% improvement[138] Research and Development - Research and development expenses amounted to RMB 60.9 million, an increase of 88.0% year-on-year[11] - R&D expenses increased from RMB 32.4 million to RMB 60.9 million, mainly due to costs associated with advancing the R&D pipeline[38] - Research and development costs increased to RMB 60,908,000 in 2022 from RMB 32,392,000 in 2021, reflecting an increase of 88%[138] - The company is developing a comprehensive neuro-interventional product portfolio, including treatments for acute ischemic stroke and neurovascular stenosis[14] - The intracranial drug-eluting balloon catheter has completed clinical trials and is preparing for NMPA registration, having received green channel qualification[24] - The company has invested HKD 33.2 million in enhancing R&D capabilities and expanding its product portfolio, with a remaining balance of HKD 15.5 million from the planned HKD 48.7 million[60] Product Development and Approval - The company received NMPA approval for 6 new products in the first half of 2022, bringing the total to 15 approved neuro-interventional devices[13] - The company has obtained NMPA approval for various ischemic stroke treatment devices, including distal access catheters and suction devices, covering both stenting and suction thrombectomy procedures[23] - The left atrial appendage occluder, aimed at preventing stroke in non-valvular atrial fibrillation patients, is expected to begin sales in the second half of 2022 after receiving NMPA approval[26] - Captor™ thrombectomy device is the first multi-point contrast thrombectomy stent approved by NMPA in China, with upgrades offering nine product models for different vessel diameters and thrombus sizes[22] Market Expansion and Strategy - The company aims to expand its market presence by launching new products in the second half of 2022 to meet the demand for primary healthcare[13] - The company aims to enhance brand awareness as a comprehensive provider of neurointerventional solutions and accelerate the commercialization of its pipeline products[33] - The company plans to develop a complete set of innovative medical devices in the cardiac intervention market, creating a competitive second business unit[33] - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[166] - A strategic acquisition of a local competitor is expected to enhance the company's product portfolio and increase market penetration[166] Financial Position and Cash Flow - As of June 30, 2022, cash and bank balances were RMB 997.0 million, a decrease of RMB 220.7 million from RMB 1,217.7 million as of December 31, 2021[52] - The net cash flow from operating activities for the six months ended June 30, 2022, was RMB (142,233) thousand, compared to RMB (70,542) thousand in the same period of 2021[109] - The company reported a net cash outflow from financing activities of RMB 27,792,000 for the first half of 2022, compared to a net outflow of RMB 3,342,000 in the same period of 2021[122] - The total cash and cash equivalents at the end of the reporting period were RMB 996,952,000, compared to RMB 129,232,000 at the end of the same period in 2021, showing a substantial increase[122] Shareholder Structure and Governance - The company has a significant shareholder structure with multiple entities holding substantial stakes, including Temasek Holdings with 4.55% in H shares[74] - The ownership distribution indicates a strong presence of institutional investors, which may influence corporate governance and strategic decisions[74] - The company is actively engaging with major investment firms, including Fullerton Management and LYFE Capital, to bolster its financial position[79] - The company has maintained a high standard of corporate governance, with a diverse and experienced board composition[90] Corporate Actions and Compliance - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2022[64] - The independent auditor, Ernst & Young, conducted a review of the interim financial data and found no significant issues[96] - The company has adopted a code of conduct for trading its securities, ensuring compliance by all directors and senior management during the reporting period[89] - There were changes in the board of directors, with Mr. Wei Jiawei appointed as an executive director on June 10, 2022, and several resignations effective August 31, 2022[84][86] Future Outlook - The company provided a future outlook, projecting a revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion[166] - The company aims to reduce operational costs by 10% through efficiency improvements and automation[166] - A new partnership with a leading healthcare provider is expected to enhance service delivery and customer engagement[166]

Financial Performance - Revenue for 2021 reached RMB 90.1 million, a significant increase of 517% compared to RMB 14.6 million in 2020[9][11] - Gross profit for 2021 was RMB 54.95 million, up from RMB 7.087 million in 2020[9] - The company reported a net loss of RMB 197.906 million in 2021, compared to a net loss of RMB 216.183 million in 2020[9] - Total non-current assets increased to RMB 172.324 million in 2021 from RMB 111.849 million in 2020[9] - Total current assets rose to RMB 1.332 billion in 2021 from RMB 661.782 million in 2020[9] - Total equity increased to RMB 1.373 billion in 2021 from RMB 691.035 million in 2020[9] - Gross margin improved from 49% in 2020 to 61% in 2021 due to increased production and corresponding economies of scale[41] - R&D costs increased from RMB 51.1 million in 2020 to RMB 76.3 million in 2021, primarily due to increased R&D expenses for in-development medical devices[45] - Administrative expenses decreased to RMB 83.9 million in 2021 from RMB 141.9 million in 2020, primarily due to reduced share-based compensation expenses[47] - Sales and distribution expenses rose to RMB 51.1 million in 2021, a 257.3% increase from RMB 14.3 million in 2020, driven by sales team expansion[48] - Cash and bank balances surged 92.6% to RMB 1,217.7 million in 2021, primarily due to proceeds from the global offering[53] - Capital expenditures totaled RMB 54.5 million in 2021, used for purchasing equipment, machinery, and software[53] - Employee benefits expenses decreased to RMB 114.3 million in 2021 from RMB 157.9 million in 2020, mainly due to reduced share-based compensation[60] - The company allocated RMB 59.0 million of the global offering proceeds for core product R&D, production, and marketing, with RMB 400.7 million remaining[57] - The company's audit fees for the fiscal year ending December 31, 2021, amounted to approximately RMB 8.58 million, with non-audit service fees for internal control review totaling RMB 0.45 million[167] - Total fees paid or payable to the auditor for audit and non-audit services for the fiscal year ending December 31, 2021, were RMB 9.03 million, including RMB 3.9 million for annual audit services and RMB 4.68 million for IPO services[168] Market Expansion and Sales - The company's full suite of thrombectomy devices has achieved market access in almost all provinces in China, covering approximately 1,400 hospitals across 31 provinces[11] - The company established a sales network including over 100 distributors and more than 100 sales personnel[11] - Revenue from commercialized neurointerventional devices reached RMB 90.1 million in 2021, supported by a sales network covering 31 provinces[17] - The company's sales and marketing team consists of over 100 employees, with a distribution network covering more than 1,400 hospitals across 31 provinces in China[36] - The company's revenue increased by 517% from RMB 14.6 million in 2020 to RMB 90.1 million in 2021, driven by sales of ischemic stroke thrombectomy devices and intracranial artery stenosis treatment devices[39] Product Development and Innovation - The company's neurovascular stenosis treatment product portfolio, approved in 2021, contributed to the revenue growth[11] - The company has obtained NMPA approval for 11 neurointerventional devices, covering three major surgical procedures and neurointerventional access devices[12] - Two products have received FDA 510K certification, marking the company's entry into the international market[12] - The company has approximately 20 emerging product pipelines in development, including left atrial appendage occluders and electrophysiology devices[13] - The company has 3 neurointerventional products in clinical trials and 4 under registration review[18] - Core product Captor™ thrombectomy device, the first multi-point imaging thrombectomy stent approved by NMPA in China, has been upgraded with 9 different models for various vessel diameters and thrombus sizes[25] - The company plans to expand Captor's indications and explore overseas marketing opportunities, potentially applying for registration in the US and Europe[25] - The company expects to obtain NMPA approval for its left atrial appendage occluder in Q2 2022 and begin sales in the second half of 2022[30] - The company has developed a comprehensive neurointerventional product portfolio, including 11 NMPA-approved products and a broad pipeline[19] - The company is advancing multiple innovative medical device pipelines in lung intervention and computer-assisted technology fields[13] - The company plans to expand its product portfolio in the cardiac intervention field, including robotic-assisted coronary intervention[13] Corporate Governance and Leadership - The company successfully listed on the Hong Kong Stock Exchange on August 20, 2021 (Stock Code: 6609)[9][11] - The company has adopted the Corporate Governance Code of the Hong Kong Stock Exchange (HKEX) and will apply the new version effective from January 1, 2022, for the fiscal year ending December 31, 2022[114] - The Chairman and CEO roles are combined, held by Mr. Wang Guohui, which deviates from the Corporate Governance Code but is deemed beneficial for leadership consistency and strategic efficiency[116] - The Board of Directors consists of 2 executive directors, 3 non-executive directors, and 3 independent non-executive directors, ensuring a high level of independence[122] - The company held 2 Audit Committee meetings and 2 Remuneration Committee meetings from the listing date to December 31, 2021[115] - The Chairman intends to hold at least one annual meeting with independent non-executive directors without the presence of other directors, as per the Corporate Governance Code[120] - All directors and supervisors confirmed compliance with the Model Code for Securities Transactions from the listing date to December 31, 2021[121] - The company has a Nomination Committee that evaluates the skills, knowledge, and experience required for the Board and recommends suitable candidates[127] - The company’s Board Diversity Policy is considered when evaluating and determining director candidates[130] - The company has received annual written confirmations of independence from all independent non-executive directors[125] - The company’s directors are elected for a term of three years and can be re-elected or removed by ordinary resolution[127] - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with defined responsibilities and sufficient resources to fulfill their duties[131][137] - The Audit Committee, chaired by Mr. Gong Ping, consists of one non-executive director and two independent non-executive directors, and held 2 meetings during the reporting period[138][139] - The Remuneration Committee, chaired by Mr. Guo Shaomu, consists of one executive director and two independent non-executive directors, and held 2 meetings to review the 2021 H-share incentive plan and related grant schemes[141][143] - The Nomination Committee, chaired by Mr. Wang, consists of one executive director and two independent non-executive directors, and did not hold any meetings during the reporting period[145][146] - The company has adopted a Board Diversity Policy to enhance the effectiveness of the Board and maintain high standards of corporate governance, considering factors such as gender, age, culture, educational background, and professional experience[149] - The company has arranged appropriate insurance coverage for directors, supervisors, and senior management to protect them against legal actions arising from company affairs, with the coverage reviewed annually[133] - All directors are required to participate in continuous professional development to update their knowledge and skills, and are encouraged to attend relevant training courses at the company's expense[135] - The company's senior management, including 2 directors, had a total of 5 members with annual remuneration ranging from RMB 1 million to RMB 30 million in 2021[144] - The Audit Committee reviewed the company's 2021 interim report and annual audit plan during the reporting period[140] - The Remuneration Committee is responsible for recommending the remuneration policy and structure for all directors and senior management, and determining their specific remuneration packages[141] - The company aims to achieve a target of 20% female representation on the board by actively seeking qualified female candidates[150] - The company held 6 board meetings, 2 audit committee meetings, and 2 remuneration committee meetings from the listing date to December 31, 2021[158] - All directors attended all 6 board meetings during the period from the listing date to December 31, 2021[160] - The company held one extraordinary general meeting on November 1, 2021, attended by Mr. Wang Guohui and Mr. Ding Kui[162] - The board is responsible for ensuring the timely publication of the company's financial statements and preparing them on a going concern basis[166] ESG and Sustainability - The company has integrated sustainable development concepts into its daily operations, aligning its overall strategic direction with sustainable development goals[192] - The company aims to become a leader in the domestic neurointervention market by providing a one-stop solution for stroke treatment and prevention[195] - In 2021, the company received multiple honors, including being recognized as a high-tech enterprise and a "Specialized, Refined, and Innovative" small and medium-sized enterprise in Shanghai[196] - The company actively communicates with stakeholders, including shareholders, customers, employees, suppliers, government and regulatory agencies, and the community, to understand their expectations and opinions on sustainable development[197] - High importance issues identified for the company's ESG (Environmental, Social, and Governance) reporting[1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18] - Medium importance issues identified for the company's ESG reporting[1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18] - Low importance issues identified for the company's ESG reporting[1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18] - Importance matrix established based on stakeholder input and business significance assessment[1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18] Risk Management and Internal Controls - The company's internal audit department is responsible for identifying and assessing major risks across operations and monitoring the correction of internal control deficiencies[185] - The internal audit department reviewed the effectiveness of internal controls related to major business processes, identified gaps and improvement opportunities, and recommended corrective actions. No significant internal control system deficiencies were identified[186] - The company has established a monitoring system to accept complaints and reports regarding violations by employees and external distributors and suppliers[189] - The Board of Directors reviewed the risk management and internal control systems for the year ended December 31, 2021, and found them to be effective and adequate[190] - The company has implemented anti-corruption and anti-bribery compliance training for directors, senior management, and sales employees to enhance their understanding and compliance with applicable laws and regulations[186] Leadership and Key Personnel - The company's executive director, Mr. Wang Guohui, has over 20 years of experience in medical device R&D and commercialization, previously holding key roles at leading medical technology companies[72][73] - The company's executive director, Ms. Zhang Kun, has over 20 years of experience in medical device R&D and commercialization, with a focus on clinical trials and cardiac intervention business[75][76] - The company's non-executive director, Mr. Ding Kui, has over 15 years of experience in finance and the medical industry, currently serving as Vice President and Board Secretary of Shanghai Kinetic Medical Co., Ltd[78] - Chen Gang joined the company as a director in June 2020 and was re-designated as a non-executive director in November 2020, providing strategic advice on operations and management[81] - Chen Gang has over 14 years of experience in the financial industry, including roles at L.E.K. Consulting and Vivo Capital, focusing on business strategy and M&A for healthcare and life sciences clients[81] - Chen Gang has held various positions in companies such as Shanghai Alland Biotech, CoreCatch Medical, and Sinomed, contributing to international business development and board roles[82] - Chen Gang currently serves as a director for multiple external companies, including Beijing Anzhiyin Biotech and Shanghai GenScript Biotech, focusing on biopharmaceutical CDMO services[83] - Ouyang Xiangyu joined the company as a director in June 2020 and was re-designated as a non-executive director in November 2020, providing strategic advice on operations and management[84] - Ouyang Xiangyu has extensive experience in the high-tech and financial industries, including roles at Legend Capital and founding Sharlyn Capital in 2018[85] - Guo Shaomu has over 13 years of experience in Hong Kong investment banking, including roles at Salomon Smith Barney, HSBC Markets, J.P. Morgan, and Morgan Stanley, focusing on financial services and real estate markets[89] - Guo Shaomu currently serves as an independent non-executive director for several listed companies, including Yida China Holdings and Fantasia Holdings Group[90] - Feng Xiangqian joined the company as an independent non-executive director in November 2020, providing independent opinions on operations and management[93] - Feng Xiangqian has over 14 years of experience in the financial industry, including roles at Caitong Securities, Donghai Securities, and Shenzhen Stock Exchange, focusing on IPO and investment banking[93] - Gong Ping, aged 35, has been serving as an independent non-executive director since January 11, 2021, providing independent opinions on the company's operations and management[94] - Zhou Baolei, aged 36, joined the company in September 2019 and was appointed as a supervisor on November 23, 2020, responsible for overseeing the company's operations[96] - Mei Jianghua, aged 44, joined the company in September 2019 and was appointed as a supervisor on November 23, 2020, responsible for overseeing the company's operations[96] - Xing Tingyu, aged 36, joined the company in August 2019 and was appointed as an employee supervisor on November 23, 2020, responsible for representing employees in overseeing the company's operations[98] - Wang Guohui, aged 44, has been serving as the CEO since the company's establishment in June 2016 and was appointed as the Chairman on November 23, 2020[100] - Li Zhigang, aged 60, has been serving as the Vice President since November 2020, responsible for the company's R&D management[101] - Wei Jiawei, aged 44, joined the company in September 2020 and was appointed as Vice President on November 23, 2020, responsible for the company's sales management[104] - Zhang Han, aged 35, joined the company in November 2020 and was appointed as CFO on November 23, 2020, responsible for the company's strategic development and financial management[107] Shareholder Communication and Investor Relations - The company has established multiple communication channels with shareholders, investors, and other stakeholders, including the publication of interim and annual reports, shareholder meetings, and online resources[181] - The company has no immediate plans to declare or pay any dividends, as it intends to retain all future earnings for business operations and expansion[182] Strategic Goals and Future Plans - The company aims to enhance its brand competitiveness and market share in the neurointerventional market in the coming years[14] - The company aims to become a leader in China's neurointerventional medical device market and develop a competitive product portfolio in the cardiac intervention market[38] - The company plans to expand manufacturing facilities in the Lingang New Area to meet growing product demand[34] - A new production facility in Shanghai's Lingang area has obtained medical device production licenses to ensure stable supply[17] Intellectual Property and Patents - The company has 50 registered patents in China, including 13 invention patents, 36 utility model patents, and 1 design patent, with 124 pending patent applications[32] Share Incentive Plans and Equity Transactions - The company implemented the 2021 H Share Incentive Plan, with a maximum of 750,000 H shares available for acquisition by the trustee[62] - The 2021 H Share Incentive Plan will be funded by the company's internal resources and not from the global offering proceeds[64] - The company purchased a total of 274,450 shares under the 2021 H-share incentive plan at an average price of HKD 94 per share, with a total cost of approximately HKD 25.8 million (excluding brokerage commissions and other expenses)[65] - Under the 2021 H-share incentive plan, the company granted 386,700 shares to employees in January 2022[68] - The company's shares were purchased under the 2021 H-share incentive plan on the Hong Kong Stock Exchange for a total consideration of RMB 14.813 million (excluding expenses)[67] Acquisitions and Investments - The company acquired a 36% equity stake in Shanghai Yuban Medical Technology Co., Ltd. for a total consideration of RMB 34.8 million, with RMB 4.8 million paid in March 2022[67] - The company's subsidiary, Shanghai Weiqi Medical Device Co., Ltd., entered into an agreement to acquire equity and inject capital into Shanghai Yuban Medical Technology Co., Ltd[67] - The company has not authorized any significant investment or capital asset acquisition plans as of the report date[66] Foreign Exchange Risk - The company faces foreign exchange risk due to bank cash denominated in USD and HKD, with no current foreign currency hedging policy in place[69]

Financial Performance - Revenue for the first half of 2021 reached RMB 30,125,000, a significant increase of 1287.6% compared to RMB 2,171,000 in 2020[8] - Gross profit for the same period was RMB 19,052,000, reflecting a 1641.5% increase from RMB 1,094,000 in 2020, with a gross margin of 63.2%[8] - The company reported a pre-tax loss of RMB (93,671,000), which is a 491.6% increase from RMB (15,834,000) in the previous year[8] - The total comprehensive loss attributable to equity holders of the parent company was RMB (91,702,000), a 479.1% increase from RMB (15,834,000) in 2020[8] - The company recorded net losses of RMB 15.8 million and RMB 93.7 million for the six months ended June 30, 2020, and 2021, respectively, and expects to continue incurring losses in the foreseeable future due to ongoing investments in R&D and commercialization[30] - The company reported a net loss of RMB 93,671 thousand for the six months ended June 30, 2021, compared to a net loss of RMB 15,834 thousand for the same period in 2020, indicating a significant increase in losses[110] - Basic and diluted loss per share was RMB (3.02) for the six months ended June 30, 2021, compared to RMB (0.77) for the same period in 2020[133] Product Development and Market Expansion - As of the report date, the company has seven NMPA-approved products and 16 products under development, focusing on innovative solutions for stroke treatment[10] - The core product, CaptorTM, is designed for minimally invasive thrombectomy in acute ischemic stroke patients and received NMPA approval in August 2020[11][13] - The company plans to expand the Captor product line with different lengths and diameters and is evaluating opportunities for overseas market entry, including the US and Europe[13] - The company is preparing for NMPA registration of a complete product set for aspiration thrombectomy, indicating ongoing product development and market expansion efforts[11] - The company is focused on developing new products and technologies to enhance its competitive position in the market[79] - The company aims to expand its market presence through strategic partnerships and potential acquisitions in the healthcare sector[156] Research and Development - R&D expenses surged from RMB 10.6 million to RMB 32.4 million, mainly due to increased costs associated with neuro-interventional medical devices[40] - Research and development expenses increased to RMB 32,392,000 from RMB 10,608,000 year-over-year, reflecting a 205% increase as the company invests in new technologies[103] - Approximately 4.8% of the net proceeds, or about HKD 48.7 million, will be used to enhance R&D capabilities and expand the product portfolio[84] Financial Position and Cash Flow - Total assets as of June 30, 2021, were RMB 1,256,162,000, compared to RMB 1,098,850,000 as of December 31, 2020, showing an increase of 14.3%[104] - Cash and bank balances decreased to RMB 287,373,000 from RMB 632,418,000, indicating a reduction of 54.5%[104] - The company’s net assets decreased to RMB 636,597,000 from RMB 691,035,000, a decline of 7.9%[106] - The company incurred net foreign exchange losses of RMB 914,000 in the first half of 2021, compared to a negligible loss of RMB 1,000 in the same period of 2020[125] - Cash flow used in operating activities was RMB (70,542) thousand for the six months ended June 30, 2021, compared to RMB (12,799) thousand for the same period in 2020, reflecting a worsening cash flow situation[110] Shareholder Information and Corporate Governance - The company has not engaged in any significant acquisitions or disposals during the reporting period[53] - The company does not recommend the payment of an interim dividend for the six months ended June 30, 2021[63] - The board of directors consists of four non-executive directors, three independent non-executive directors, and two executive directors, ensuring a high level of independence[93] - The company has adopted a code of conduct for securities transactions by directors and supervisors, ensuring compliance with the standards set out in the listing rules[92] Strategic Initiatives and Future Outlook - The company is exploring market expansion opportunities through strategic partnerships and investments in emerging industries[79] - Future guidance will be provided during the earnings call, outlining expected growth and strategic initiatives[152] - The financial performance during the report period will be analyzed in detail in the upcoming earnings call[152]