Summary of Key Points Core Viewpoint - As of July 14, a total of 138 stocks reached their 52-week highs, indicating a strong performance in the market, with notable leaders including Green Heart Group Holdings, OK Blockchain, and Pearl River Steel Pipe [1]. Group 1: Top Performers - Green Heart Group Holdings (02999) achieved a closing price of 0.013 with a peak of 0.017, marking a 70.00% increase [1]. - OK Blockchain (01499) closed at 0.680, reaching a high of 0.690, reflecting a 48.39% rise [1]. - Pearl River Steel Pipe (01938) had a closing price of 0.335 and a peak of 0.340, resulting in a 33.33% increase [1]. Group 2: Other Notable Stocks - Weishi Jiajie (00856) saw a 32.01% increase, closing at 8.870 with a high of 11.300 [1]. - Cloud Intelligence (09678) reached a high of 520.000, closing at 510.000, which is a 20.99% increase [1]. - China Chengtong Development Group (00217) closed at 0.165 with a peak of 0.166, marking a 14.48% rise [1]. Group 3: Additional Stocks with Significant Increases - Sihuan Pharmaceutical (00460) closed at 1.380, reaching a high of 1.430, which is a 14.40% increase [1]. - Taited Pharmaceutical (03880) had a closing price of 36.950 and a peak of 37.400, reflecting a 13.85% rise [1]. - Beihai Kangcheng-B (01228) closed at 0.850 with a high of 0.960, resulting in a 12.94% increase [1].

Core Viewpoint - The PTCA balloon industry in China is experiencing steady growth due to the increasing prevalence of cardiovascular diseases, the expansion of coronary intervention treatments, and the rise of domestic medical device manufacturers. The market size is projected to grow from 1.059 billion yuan in 2021 to 1.366 billion yuan in 2024, with expectations to exceed 2.274 billion yuan by 2030 [1][11]. Industry Overview - PTCA balloons are medical devices used in cardiovascular interventions to dilate narrowed or blocked coronary arteries, improving blood flow and myocardial supply [1]. - The industry chain consists of upstream raw materials and equipment supply, midstream production, and downstream application in various medical institutions for treating cardiovascular diseases [2]. Industry Environment - The incidence of coronary artery disease (CAD) is rising in China, with the number of patients increasing from 25.272 million in 2020 to 27.953 million in 2024, and projected to exceed 30 million by 2030 [4]. - The mortality rate for CAD has also increased significantly, indicating a growing demand for treatment options [4]. Industry Status - Percutaneous coronary intervention (PCI) is a key treatment method for CAD, with a record of 1.63 million PCI procedures performed in 2023, marking a growth rate of 26.44% [7]. - Despite the increasing number of PCI procedures, the market penetration rate in China remains low at 690.9 procedures per million people, compared to 3022.1 in the U.S., suggesting significant growth potential [9]. Competitive Landscape - The global PTCA balloon market is dominated by international giants like Boston Scientific and Medtronic, which hold over 60% market share, particularly in high-end drug-eluting balloons [13]. - Domestic companies account for 60% of the number of firms but only 40% of the market share, indicating a competitive landscape where local firms are striving to catch up through innovation [13]. Future Trends - The industry is witnessing significant technological innovation and product upgrades, with new polymer materials enhancing balloon performance and the introduction of drug-coated balloons reducing the risk of restenosis [19]. - The trend towards domestic substitution is accelerating, with local companies like MicroPort and Lepu Medical increasing their market share due to improved product quality and performance [20]. - The demand for PTCA balloons is expected to grow as their application expands beyond traditional coronary disease treatment to include peripheral and intracranial vascular diseases [21].

Financial Performance - Total revenue for the year ended December 31, 2024, reached RMB 534.0 million, a year-on-year increase of 12.7% compared to RMB 473.8 million in 2023[8] - Gross profit for the same period was RMB 402.7 million, reflecting a 6.7% increase from RMB 377.4 million in 2023[8] - Pre-tax profit surged to RMB 52.6 million, marking a significant increase of 264.0% from RMB 14.5 million in the previous year[8] - The company's revenue for the reporting period was approximately RMB 534.0 million, representing a year-on-year increase of about 12.7%[17] - Revenue from diversified sources, including peripheral suction systems and radiofrequency ablation systems, contributed approximately RMB 213.7 million, accounting for about 40.0% of total revenue[19] - Revenue from AcoArt Orchid® & Dhalia® sales in China and overseas was approximately RMB 267.0 million, representing a year-over-year decrease of about 2.7%[32] - Revenue from sales of venous intervention, vascular access, and other products was approximately RMB 213.7 million, reflecting an annual increase of about 42.2%[42] - The company achieved revenue of approximately RMB 213.7 million from venous intervention, vascular access, and other products, accounting for about 40.0% of total revenue during the reporting period[108] Product Development and Approvals - The company achieved a record high of 7 new product launches in 2024, including AcoArt Camellia®, RunFlow®, and Peridge®[9] - In 2024, the company received approval for seven products from the National Medical Products Administration, enhancing its product portfolio and market influence[18] - The company has made significant progress in product development, with seven products approved during the reporting period across various medical fields[26] - The product pipeline includes 22 commercialized products and 10 in-development products, categorized under the first, second, and third categories of medical devices[27] - The company has initiated clinical trials for AcoArt Litos® in the US and Europe, marking a significant milestone for market entry[21] - The company has received approvals from the National Medical Products Administration (NMPA) for various products, including those exempt from clinical trials in China[28] - The company plans to commercialize several new products by 2025 and 2026, including a peripheral scoring balloon and a mechanical thrombectomy device[28] - The company expects to obtain regulatory approval for the lower limb rapamycin DCB by 2026, currently undergoing clinical trials[43] Market Expansion and International Business - The company accelerated its international business development, completing preliminary work for market entry in several countries, including Chile, Austria, and the UK[20] - The company has launched AcoArt Orchid® in multiple countries including Germany, Italy, and Switzerland, and is in the process of entering markets such as Chile and Austria[30] - The company plans to continue expanding in both domestic and global markets, focusing on product development through internal growth, mergers, and acquisitions[103] - The company anticipates that its international business will diversify its revenue sources and enhance its flexibility in responding to market changes as it accelerates development in 2024[108] Research and Development - As of December 31, 2024, the total number of employees reached 650, with the R&D team growing to 131 members, enhancing talent reserves[25] - Research and development costs for the year ending December 31, 2024, were approximately RMB 216.8 million, an increase of about 14.0% from RMB 190.1 million for the year ending December 31, 2023[86] - The company has established a strong intellectual property portfolio, holding 57 registered patents and 42 pending patent applications as of December 31, 2024[67][71] - The company has expanded its R&D team to strengthen its capabilities in mechanical design, polymer materials, medicine, pharmacy, and chemistry[67] Corporate Governance and Compliance - The company has adopted a corporate governance code and has complied with all applicable provisions during the reporting period, with some deviations noted[113] - The audit committee has reviewed the audited consolidated financial statements for the year and confirmed they were prepared in accordance with applicable accounting standards[118] - The company has not experienced any significant violations of applicable laws and regulations that would materially impact its business for the year ending December 31, 2024[148] Financial Position and Capital Management - Total assets as of December 31, 2024, amounted to RMB 1,662.6 million, a 3.2% increase from RMB 1,611.1 million in 2023[8] - The net current assets as of December 31, 2024, are approximately RMB 1,075.8 million, a decrease of about 1.7% from RMB 1,094.9 million as of December 31, 2023, primarily due to an increase in trade liabilities[96] - The total capital expenditure during the reporting period is approximately RMB 97.5 million, allocated for the purchase of plants and equipment, capitalized development projects, and intangible assets[99] - The cash and cash equivalents, along with financial assets measured at amortized cost, amount to approximately RMB 864.2 million, a decrease of about 1.7% from RMB 879.2 million as of December 31, 2023, primarily due to increased operating and capital expenditures[94] Risks and Challenges - The company faces significant risks, including the successful commercialization of in-development products and the lengthy, costly nature of clinical product development[145] Shareholder Information - As of December 31, 2024, the company has a total of 313,389,171 issued shares[173] - Boston Scientific Group plc owns 203,702,962 shares, accounting for 65.00% of the company's equity[174] - Ms. Li holds 28,919,456 shares, representing approximately 9.23% of the company's equity[170] - CA Medtech Investment (Cayman) Limited holds 29,965,444 shares, which is about 9.56% of the company's equity[174] - Cosmic Elite Holdings Limited has a stake of 25,599,016 shares, representing 8.17% of the company's equity[174]

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 533.988 million, representing a year-on-year increase of 12.7% compared to RMB 473.848 million in 2023[3]. - Gross profit for the same period was RMB 402.722 million, up 6.7% from RMB 377.415 million in 2023[3]. - Profit before tax surged to RMB 52.601 million, a significant increase of 264.0% from RMB 14.452 million in the previous year[3]. - The net profit for the year was RMB 52,280 thousand, a significant increase from RMB 14,487 thousand in 2023, reflecting a growth of 261.5%[15][17]. - Basic and diluted earnings per share rose to RMB 0.17 from RMB 0.05, marking a 240% increase year-over-year[15]. - The company reported a total comprehensive income of RMB 53,288 thousand for the year, up from RMB 15,179 thousand in 2023[17]. - Revenue from external customers for 2024 reached RMB 533,988,000, an increase of 12.7% from RMB 473,848,000 in 2023[31]. - Revenue from mainland China accounted for RMB 508,787,000, up 11% from RMB 458,226,000 in 2023[31]. - Other income for 2024 was RMB 40,429,000, a rise of 14.4% from RMB 35,397,000 in 2023, driven by increased interest income[33]. - The company reported a revenue of approximately RMB 213.7 million from the sale of venous intervention, vascular access products, and other products, representing an annual increase of about 42.2%[104]. Research and Development - The company registered 11 patents and submitted 16 new patent applications during the reporting period[4]. - Research and development expenses increased to RMB 216,773 thousand from RMB 190,070 thousand, highlighting the company's commitment to innovation[15]. - The company plans to invest in technological innovation to strengthen its R&D capabilities and maintain its leading position in the DCB market[119]. - The company has a robust R&D team and has strengthened its talent pool by adding personnel with expertise in mechanical design, polymer materials, medicine, pharmacy, and chemistry[109]. - The company is investing in R&D for innovative technologies aimed at enhancing product efficacy and expanding market reach[169]. Product Development and Market Expansion - The company has expanded its international business, completing preliminary work for market entry in countries such as Chile, Austria, and the UK[8]. - A distribution agreement with Boston Scientific Group plc was established for the sale of peripheral DCB products in overseas markets[10]. - Seven products received approval from the National Medical Products Administration, enhancing the company's product portfolio and market influence[6]. - The company initiated clinical trials for AcoArt Litos® in the US and Europe, marking a significant milestone for market entry[65]. - The company plans to expand its product offerings across four treatment areas, including vascular surgery, cardiology, nephrology, and neurology, leveraging synergies from its four core technologies[153]. Operational Efficiency and Cost Management - Administrative expenses for the year ending December 31, 2024, were approximately RMB 64.9 million, a decrease of about 22.6% from RMB 83.8 million for the year ending December 31, 2023[135]. - Financing costs increased by approximately 15.5% to RMB 11.5 million for the year ending December 31, 2024, compared to RMB 10.0 million for the year ending December 31, 2023, primarily due to increased interest expenses[136]. - The company reported a decrease in operational costs by D%, which positively impacted overall profitability margins[171]. Future Outlook - The company plans to continue expanding its market presence and investing in new product development to drive future growth[22]. - The company provided an optimistic outlook for the next fiscal year, projecting revenue growth of B% and an expected increase in user engagement metrics[171]. - The company anticipates increased sales from overseas markets as its products and pipeline products gain more marketing approvals outside of China[112]. - Future guidance includes a commitment to maintaining a strong balance sheet while pursuing growth opportunities in emerging markets[171]. Intellectual Property and Regulatory Approvals - The company has a strong intellectual property portfolio, including 57 registered patents and 42 pending patent applications as of December 31, 2024[109]. - The company has received regulatory approval for AcoArt Orchid® & Dhalia® in multiple countries, including Germany, Italy, and Brazil, and is expanding into additional markets such as Chile and Austria[74]. - The coronary microcatheter (Vericor-S2®) received NMPA registration approval on January 20, 2025[76]. Employee and Talent Development - The total number of employees reached 650, with the R&D team growing to 131 members, enhancing the company's talent pool[13]. - The company has improved the design and coating process of its products to enhance treatment efficacy and operational convenience[103].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 292.3 million, representing a 20.3% increase compared to RMB 243.1 million for the same period in 2023[5]. - Gross profit for the same period was RMB 217.2 million, an increase of 11.3% from RMB 195.1 million year-on-year[5]. - Profit before tax surged to RMB 39.9 million, marking a significant increase of 78.7% from RMB 22.4 million in the previous year[5]. - The company reported a total comprehensive income of RMB 40,329,000 for the period, compared to RMB 23,890,000 in the previous year[89]. - Net profit for the period was RMB 39,957,000, a significant increase of 78.8% from RMB 22,369,000 in the previous year[89]. - Basic and diluted earnings per share for the period were both RMB 0.13, compared to RMB 0.07 in the same period last year[88]. - The company generated approximately RMB 174.6 million from core product sales, reflecting a year-on-year increase of about 14.2%[36]. - Revenue from diversified products, including peripheral suction systems and radiofrequency ablation systems, contributed approximately RMB 117.7 million, accounting for about 40.3% of total revenue[8]. Product Development and Innovation - The company has established approximately 30 product pipelines across vascular surgery, cardiology, nephrology, and neurology, focusing on minimally invasive interventional solutions[6]. - The product pipeline includes approximately 30 diverse products across vascular surgery, cardiology, nephrology, and neurology, demonstrating strong market potential and execution capabilities[9]. - The company registered six new patents and submitted six additional patent applications during the reporting period[7]. - AcoArt Litos® received FDA IDE approval in November 2023, marking a significant milestone for entry into the U.S. market, with clinical trials currently being prepared[9]. - Three products received approval from the National Medical Products Administration during the reporting period, including Peridge®, Wingyan®, and Vericor-RS®[12]. - The company is actively cultivating the market for new products to provide innovative treatment solutions for clinical patients[10]. - The company has a strong internal R&D team with 63 registered patents and 38 pending patent applications as of June 30, 2024[34]. Market Expansion and Strategic Partnerships - The company has expanded its international presence, preparing to enter markets in Chile, Austria, Finland, Sweden, the Netherlands, and the UK[8]. - A strategic cooperation agreement was signed with Boston Scientific Group plc to enhance product commercialization and development over the next three years[8]. - A framework agreement with BSG was established on July 20, 2023, to enhance global market sales opportunities for the company's products[40]. - The company aims to become a global leader in providing comprehensive interventional solutions for vascular diseases[39]. Financial Position and Resources - As of June 30, 2024, the total available financial resources amounted to approximately RMB 930.4 million, an increase of about 5.8% from RMB 879.4 million as of December 31, 2023[54]. - The total borrowings as of June 30, 2024, were RMB 55.0 million, up from RMB 10.0 million as of December 31, 2023, resulting in a capital debt ratio increase from approximately 24.3% to 27.8%[55]. - The net current assets as of June 30, 2024, were approximately RMB 1,113.4 million, an increase of about 1.7% from RMB 1,094.9 million as of December 31, 2023[56]. - The company plans to continue expanding in both domestic and global markets and will support capital expenditures through various financing channels, including internal funds and bank loans[62]. Operational Efficiency and Cost Management - The cost of sales for the six months ended June 30, 2024, was approximately RMB 75.1 million, a significant increase of about 56.7% from RMB 47.9 million in the previous year[43]. - Gross profit increased by approximately 11.3% to about RMB 217.2 million, but the gross margin decreased from 80.3% to 74.3% due to lower margins on certain products[44]. - Research and development costs rose by approximately 11.8% to RMB 100.5 million, driven by an increase in R&D personnel and ongoing project investments[48]. - Administrative expenses decreased by approximately 11.8% to RMB 33.8 million for the six months ended June 30, 2024, from RMB 38.3 million for the same period in 2023[50]. Shareholder Information and Corporate Governance - The company does not recommend an interim dividend for the six months ending June 30, 2024[66]. - The company intends to retain future profits for business operations and expansion, with no current plans for dividend distribution[67]. - As of June 30, 2024, Boston Scientific Group plc (BSG) holds 203,702,962 shares, representing 65% of the company's equity[76]. - The company has adopted a corporate governance code and has complied with all applicable provisions, except for the separation of the roles of Chairman and CEO[67].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 292,339,000, representing a 20.3% increase from RMB 243,063,000 for the same period in 2023[2] - Gross profit for the same period was RMB 217,210,000, up 11.3% from RMB 195,116,000 year-on-year[2] - Profit before tax increased significantly by 78.7% to RMB 39,939,000 compared to RMB 22,351,000 in the previous year[2] - Net profit for the period was RMB 39,957,000, reflecting a 78.6% increase from RMB 22,369,000 in the prior year[2] - Basic and diluted earnings per share for the period were both RMB 0.13, compared to RMB 0.07 in the same period last year[3] - Revenue for the reporting period was approximately RMB 292.3 million, representing a year-on-year increase of about 20.3%[33] - Revenue from diversified products, including AcoStream® and AcoArt Cedar®, contributed approximately RMB 117.7 million, accounting for about 40.3% of total revenue[35] - Revenue from AcoArt Orchid® & Dhalia® sales in China and overseas reached approximately RMB 142.3 million, representing a year-on-year increase of about 12.8%[43] - Revenue from AcoArt Tulip® & Litos® sales in China and overseas reached approximately RMB 32.3 million, representing a year-on-year increase of about 21.1%[44] - Revenue from venous intervention and vascular access products, including AcoArt Iris® & Jasmin®, AcoArt Lily® & Rosmarin®, and others, was approximately RMB 117.7 million, reflecting a year-on-year increase of about 30.5%[49] Research and Development - Research and development expenses rose to RMB 100,459,000, compared to RMB 89,877,000 in the same period last year[3] - Research and development costs for the six months ended June 30, 2024, were approximately RMB 100.5 million, an increase of about 11.8% from RMB 89.9 million in the same period of 2023[74] - The company has established a strong internal R&D team and has supplemented it with technical personnel in clinical medicine and mechanical engineering[59] - The company has registered six patents and submitted six new patent applications during the reporting period[33] - The company holds 63 registered patents and 38 pending patent applications as of June 30, 2024, along with 154 registered trademarks and 27 pending trademark applications[63] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 1,304,145,000, compared to RMB 1,211,124,000 at the end of 2023[6] - The company's net asset value increased to RMB 1,336,857,000 from RMB 1,296,528,000 at the end of the previous year[9] - The total available financial resources of the group amounted to approximately RMB 930.4 million, an increase of about 5.8% from RMB 879.4 million as of December 31, 2023[80] - The total borrowings of the group as of June 30, 2024, were RMB 55.0 million, up from RMB 10.0 million as of December 31, 2023[81] - The capital debt ratio increased from approximately 24.3% as of December 31, 2023, to about 27.8% as of June 30, 2024, primarily due to the increase in bank loans[81] Corporate Governance - The company has adopted a corporate governance code and has complied with all applicable provisions during the reporting period, with the exception of the separation of the roles of Chairman and CEO, which are held by the same individual[88] - The board does not recommend the payment of an interim dividend for the six months ending June 30, 2024, consistent with the previous period where no dividend was declared[88] - The company plans to retain all future profits for business operations and expansion, with no current dividend policy in place[88] - The board will continue to review the effectiveness of the corporate governance structure to assess the need for separating the roles of Chairman and CEO[88] Market Expansion and Product Development - The company has expanded its international business, preparing to enter markets in Chile, Austria, Finland, Sweden, the Netherlands, and the UK with AcoArt products[35] - The company has established strategic partnerships, including a comprehensive cooperation agreement with Boston Scientific Group plc to enhance product commercialization and development[35] - The company plans to expand its product offerings in four treatment areas: vascular surgery, cardiology, nephrology, and neurology, primarily by expanding the indications for DCB products[66] - The company aims to increase sales of products already in hospitals and will implement a systematic DCB training program to accelerate physician education[66] - The company has ongoing product pipeline updates to meet market demands, with several products expected to launch between 2024 and 2026[43] Employee and Operational Metrics - The total number of employees reached 615, with the R&D team growing from 127 to 132 members, enhancing the company's talent pool[37] - The group employed a total of 615 employees as of June 30, 2024, with a focus on competitive compensation and continuous training programs[83] - The production capacity, actual output, and utilization rate for commercial balloon catheter products during the reporting period were 466,644, 202,811, and 43.5% respectively[61] Financial Review and Audit - The interim financial report for the six months ending June 30, 2024, has not been audited but has been reviewed by KPMG according to the relevant standards[92] - The interim results announcement and the mid-year report for 2024 will be published on the Hong Kong Stock Exchange and the company's website[93]

Financial Performance - Total revenue for the year ended December 31, 2023, reached approximately RMB 473.8 million, a year-on-year increase of 19.8%[23] - Gross profit for the same period was approximately RMB 377.4 million, reflecting a year-on-year growth of 12.2%[23] - The company reported a significant decrease in profit before tax, down 79.4% to RMB 14.5 million from RMB 70.3 million in the previous year[23] - Adjusted net profit for the year was RMB 42.4 million, representing a year-on-year increase of 22.1%[23] - The company's revenue for the year ended December 31, 2023, was approximately RMB 473.8 million, an increase of about 19.8% compared to RMB 395.5 million for the year ended December 31, 2022[58] - Sales of core products, particularly AcoArt Tulip® and Litos®, contributed significantly to revenue growth, with core product sales reaching RMB 323.5 million, accounting for 68.3% of total revenue[59] - Revenue from venous intervention, vascular access, and other products increased by approximately 70.3%, rising from 22.3% of total revenue in 2022 to 31.7% in 2023[58] Product Development and Innovation - The company launched four new products in 2023, including the RT-Zero® coronary CTO balloon and AcoStream® second-generation peripheral thrombectomy system[27] - AcoArt Litos®, the world's first clinically validated below-the-knee drug-coated balloon, received FDA investigational device exemption (IDE) approval for clinical studies in the U.S.[27] - The company registered 19 new patents and submitted 26 new patent applications during the reporting period[30] - The company’s product pipeline includes over 30 products across various medical fields, with significant advancements in research and clinical trials in 2023[32] - The company received FDA IDE approval for clinical research of the BTK DCB in the United States, marking a significant milestone in its product development[32] - The company is advancing production development at a rapid pace, with significant progress in its product pipeline[35] - The company plans to commercialize 15 products by 2026, with several receiving regulatory approvals, including CE and NMPA certifications[35] Regulatory Approvals and Market Expansion - Four products received approval from the National Medical Products Administration during the reporting period, including two upgraded versions: AcoStream® II and ACOART AVENS®[34] - The coronary CTO recanalization balloon (RT-Zero®) and the coronary CTO antegrade microcatheter (Vericor-14®) further expand the company's product portfolio in the cardiology field[34] - The company is expanding the indications for AcoArt Orchid® & Dhalia® to include treatment for vertebral artery atherosclerotic stenosis, with expected regulatory approval in 2024[38] - The company anticipates obtaining regulatory approval for the peripheral scoring balloon in 2024, having submitted the product registration in 2023[45] - The company expects to obtain regulatory approval for the coronary rapamycin DCB in 2024, following the completion of clinical trials[47] Strategic Partnerships and Collaborations - The company established a strategic partnership with Boston Scientific, outlining collaboration in product commercialization, manufacturing services, and product development over the next three years[31] - A framework agreement was signed with BSG on July 20, 2023, to regulate ongoing related party transactions and facilitate global market sales of the company's products[56] - The cooperation agreement allows BSG to sell its products through the company in the Greater China region, and vice versa[128] Research and Development - The company has a strong internal R&D team with 66 registered patents and 30 pending applications as of December 31, 2023[51] - Research and development costs for the year ended December 31, 2023, were approximately RMB 1,901 million, a 3.4% increase from RMB 1,838 million for the year ended December 31, 2022, mainly due to an increase in the number of R&D personnel[63] - The company aims to enhance its R&D capabilities through increased investment in technological innovation to maintain its leading position in the DCB market[57] Financial Position and Liabilities - Non-current assets increased by 159.5% to RMB 399.9 million as of December 31, 2023, compared to RMB 154.1 million in 2022[25] - Total assets grew by 14.2% to RMB 1,611.1 million in 2023, up from RMB 1,410.5 million in 2022[25] - Total liabilities increased by 133.9% to RMB 314.5 million in 2023, compared to RMB 134.5 million in 2022[25] - The company's capital debt ratio increased from approximately 10.5% as of December 31, 2022, to approximately 24.3% as of December 31, 2023, mainly due to an increase in lease liabilities[72] Corporate Governance and Management - The board of directors consists of seven members, including two executive directors and three independent non-executive directors, ensuring a balanced governance structure[186] - The company has established three committees: audit committee, remuneration committee, and nomination committee, each with defined responsibilities[197] - The audit committee confirmed that the annual performance for the year ending December 31, 2022, complied with relevant accounting standards and regulations[199] Market Strategy and Sales - The company employs a strategic marketing model, leveraging relationships with hospitals and a KOL network to promote products in China[53] - The company is focusing on expanding its core products across three therapeutic areas, indicating a strategic approach to market growth[36] - The company aims to diversify its revenue sources through accelerated international business development, enhancing its ability to respond to market changes[78] Employee and Workforce Development - As of December 31, 2023, the company employed a total of 638 staff, with the R&D team growing to 127 members, enhancing its talent pool[33] - The company has implemented various internal occupational health and safety procedures to maintain a safe working environment[103] Shareholder and Equity Information - The total reserves available for distribution to equity shareholders as of December 31, 2023, amounted to RMB 1,341,822,000, a decrease from RMB 1,357,317,000 in 2022[107] - The company has confirmed the independence of all independent non-executive directors as of the report date[114] - The board does not recommend the distribution of a final dividend for the year ending December 31, 2023[80] Environmental and Social Responsibility - The company emphasizes its commitment to sustainable development and environmental responsibility in its operations[101] - The total amount of donations made by the group for the year ended December 31, 2023, was approximately RMB 1.83 million[177]

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 473.8 million, representing a year-on-year increase of 19.8% from RMB 395.5 million in 2022[2] - Gross profit for the same period was RMB 377.4 million, up 12.2% from RMB 336.4 million in the previous year[2] - Adjusted net profit for the year was RMB 42.4 million, an increase of 22.1% compared to RMB 34.8 million in 2022[2] - Operating profit decreased significantly to RMB 25,009 thousand from RMB 72,075 thousand, a decline of 65.3%[6] - Net profit for the year was RMB 14,487 thousand, down 79.3% from RMB 70,142 thousand in 2022[7] - Basic and diluted earnings per share were both RMB 0.05, compared to RMB 0.23 in the previous year, reflecting a decrease of 78.3%[6] - Total comprehensive income for the year was RMB 15,179 thousand, a decrease of 78.4% from RMB 70,204 thousand in 2022[8] - Revenue from new products, including the second-generation peripheral suction system and radiofrequency ablation systems, contributed approximately RMB 150.3 million, accounting for about 31.7% of total revenue[4] - Core product revenue reached RMB 323,536 thousand in 2023, up from RMB 307,283 thousand in 2022, representing a growth of 5.1%[16] - Revenue from vascular intervention, access products, and others increased significantly to RMB 150,312 thousand in 2023 from RMB 88,262 thousand in 2022, marking a growth of 70.5%[16] Product Development and Approvals - The company registered 19 new patents and submitted 26 new patent applications during 2023[3] - A total of four new products received approval from the National Medical Products Administration in 2023, including upgrades to existing products[4] - The company received FDA IDE approval for BTK DCB clinical research, marking a significant advancement in its product pipeline[48] - AcoArt Daisy® clinical trial showed a target vessel restenosis rate of 6.85%, significantly lower than the stent group, indicating strong clinical efficacy[48] - AcoArt Orchid® & Dhalia® received the latest registration certificate for the expanded indication for treating AVF stenosis from the National Medical Products Administration in July 2022[56] - The company has received regulatory approval for the AV scoring balloon (Peridge®) on January 30, 2024[54] - The second-generation peripheral suction system (AcoStream® II) received approval from the National Medical Products Administration in April 2023[6] - The PTA balloon (P-Conic®) was approved by the National Medical Products Administration in December 2022, with no significant adverse changes reported since then[6] - The coronary CTO recanalization balloon (RT-Zero®) received approval in March 2023, with no significant adverse changes reported since then[66] - The company has submitted product registration for the peripheral scoring balloon in 2023, expecting approval in 2024[6] Market Expansion and Collaborations - The company expanded its international business, achieving market approvals in Japan and Thailand, bringing its product commercialization to a total of 15 countries[5] - The company signed a comprehensive cooperation agreement with Boston Scientific Group plc, enhancing collaboration in product commercialization and development over the next three years[5] - The company has established distribution agreements for its peripheral DCB products in the European market and various coronary products in the Chinese market, enabling BSC to begin sales in the domestic market[78] - A framework agreement was signed with BSG on July 20, 2023, to facilitate global market sales of the company's products, promoting revenue diversification[79] - The company plans to continue expanding its product pipeline and market presence through internal development, mergers, and acquisitions, supported by various financing channels including internal funds and bank loans[102] Research and Development - The total number of employees reached 638, with the R&D team growing to 127 members, enhancing the company's talent pool[5] - R&D expenses amounted to RMB 190,070 thousand in 2023, slightly increasing from RMB 183,796 thousand in 2022, a growth of 3.5%[24] - The company is focused on the research and development of vascular disease treatment solutions, indicating ongoing investment in innovation and market expansion[12] - The company aims to enhance its R&D capabilities by increasing investment in technological innovation to strengthen its competitive position in the DCB market[79] - The company is committed to enhancing its product offerings in response to market needs[54] Financial Position and Assets - Current assets totaled RMB 1,094,879 thousand, while total assets less current liabilities amounted to RMB 1,494,812 thousand, an increase from RMB 1,311,870 thousand in 2022[10] - Non-current liabilities increased to RMB 198,284 thousand from RMB 35,781 thousand, primarily due to lease liabilities[11] - The company's equity attributable to shareholders rose slightly to RMB 1,296,528 thousand from RMB 1,276,089 thousand in 2022[11] - The group had cash and cash equivalents of approximately RMB 879.2 million as of December 31, 2023, a decrease of about 10.9% from RMB 986.5 million as of December 31, 2022, primarily due to increased operating and capital expenditures[96] - The total borrowings amounted to RMB 10.0 million as of December 31, 2023, compared to zero as of December 31, 2022[97] - The debt-to-equity ratio increased from approximately 10.5% as of December 31, 2022, to approximately 24.3% as of December 31, 2023, mainly due to an increase in lease liabilities[97] Corporate Governance and Future Plans - The board of directors did not recommend a final dividend for the year ended December 31, 2023[43] - The company plans to retain all future profits for business operations and expansion, with no current dividend policy in place[110] - The audit committee has reviewed the audited consolidated financial statements for the year and confirmed they were prepared in accordance with applicable accounting standards and regulations[112] - The annual performance announcement and the 2023 annual report will be published on the Stock Exchange and the company's website[113] - The company will continue to participate in international vascular intervention conferences and academic activities to promote its products and brand globally[107]

Financial Performance - Revenue for the six months ended June 30, 2023, reached RMB 243.1 million, an increase of 38.6% compared to RMB 175.3 million for the same period in 2022[7]. - Gross profit for the same period was RMB 195.1 million, reflecting a growth of 34.8% from RMB 144.8 million year-on-year[7]. - Adjusted net profit for the period was RMB 35.7 million, an increase of 83.8% compared to RMB 19.4 million in the previous year[7]. - Revenue from sales of AcoArt Orchid® & Dhalia® in China and overseas was approximately RMB 126.2 million, an increase of about 2.0% year-on-year[19]. - Revenue from sales of venous intervention and vascular access products was approximately RMB 88.9 million, an increase of about 190.9% year-on-year[25]. - Revenue from core products and venous intervention products was approximately RMB 152.9 million and RMB 88.9 million, representing increases of approximately 7.0% and 190.9%, respectively[41]. - The gross profit increased by approximately 34.8% to about RMB 195.1 million for the six months ended June 30, 2023, with a gross margin of approximately 80.3%, down from 82.6% in the same period of 2022[47]. - The company recorded a net loss of approximately RMB 7.1 million in other income for the six months ended June 30, 2023, compared to a net gain of RMB 15.1 million in the same period of 2022, primarily due to foreign exchange losses[49]. - The company reported a total comprehensive income of RMB 23,890 thousand for the period, compared to RMB 31,189 thousand in the same period last year[94]. Product Development and Innovation - The company is focused on continuous innovation and clinical promotion in vascular intervention therapies, aiming to provide new treatment solutions[10]. - The product pipeline is progressing as planned, with ongoing developments in various therapeutic areas[11]. - The company has a total of 14 commercialized products and 18 products under development, categorized as Class I, II, and III medical devices by the National Medical Products Administration[14]. - The company aims to enhance its global market reputation and expand revenue sources through the framework agreement with BSC[12]. - The company plans to expand its product offerings in five treatment areas, including vascular surgery, cardiology, nephrology, neurology, and urology, by broadening the indications for DCB products[43]. - The company is focused on expanding its core products and commercializing them in new markets[16]. - The company is developing a peripheral thrombectomy device, with expected NMPA approval in 2025[27]. - The company is developing a coronary IVL system aimed at reducing stent implantation rates, with expected NMPA approval in 2026[32]. Market Expansion and Internationalization - The company has successfully expanded its hospital admissions, with ATK DCB reaching 1,501 hospitals and BTK DCB reaching 750 hospitals as of June 30, 2023[9]. - The company has commercialized its products in 14 overseas countries, enhancing revenue diversification and market adaptability[9]. - The company aims to accelerate its internationalization process to further diversify its business and revenue sources[9]. - As of June 30, 2023, AcoArt Orchid® has been launched in 14 countries, including Germany, Italy, Switzerland, and Brazil, following regulatory approvals[18]. - The company has successfully launched AcoArt Tulip® & Litos® in 12 additional countries as of June 30, 2023[20]. Research and Development - Research and development costs for the six months ended June 30, 2023, were approximately RMB 89.9 million, an increase of about 16.6% compared to RMB 77.1 million for the same period in 2022[51]. - The company continues to focus on the research and development of treatment solutions for vascular diseases as its primary business[105]. - The company has been engaged in research and development of treatment solutions for vascular diseases, with its main operational location in Beijing, China[102]. Corporate Governance and Shareholder Information - The company has adopted a corporate governance code and has complied with all applicable provisions, except for the separation of the roles of Chairman and CEO[72]. - The company plans to retain all future profits for business operations and expansion, with no current dividend policy in place[72]. - Boston Scientific became the controlling shareholder of the company with a 65% stake as of February 9, 2023, following a partial offer to shareholders[151]. - The company has entered into a total cooperation agreement and a total service agreement with its controlling shareholder, BSG, which holds approximately 65.0% of the company's issued share capital[66]. Financial Position and Cash Flow - Cash and cash equivalents as of June 30, 2023, were approximately RMB 947.8 million, a decrease of about 3.9% from RMB 986.5 million as of December 31, 2022[60]. - The capital-to-debt ratio increased from approximately 10.5% as of December 31, 2022, to about 22.9% as of June 30, 2023, primarily due to an increase in lease liabilities[61]. - The company reported a net cash generated from operating activities for the six months ended June 30, 2023, is RMB 9,918 thousand, a significant improvement from RMB (36,707) thousand for the same period in 2022[101]. - The company incurred RMB 25,733 thousand in payments for the purchase of property, plant, and equipment, and intangible assets during the first half of 2023, compared to RMB 17,335 thousand in the same period of 2022[101]. - The company’s total equity as of June 30, 2023, is RMB 1,276,089 thousand, an increase from RMB 1,225,309 thousand as of December 31, 2022, representing a growth of approximately 4.1%[99]. Employee and Training Initiatives - The total number of employees as of June 30, 2023, was 645, with ongoing efforts to enhance team capabilities and professional skills[10]. - The company has established a comprehensive training system to support employee growth and skill enhancement[10]. Regulatory Approvals and Compliance - Four products received approval from the National Medical Products Administration in the first half of 2023, including the second-generation peripheral suction system (AcoStream® II) and two cardiac products (RT-Zero® and Vericor-14®)[13]. - The company is exempt from clinical trial requirements based on the revised catalog issued by the NMPA[16]. - The company has received registration approval from the Thai Food and Drug Administration for the peripheral support catheter (Vericor®)[13].

[Peijia Medical Technology (Holdings) Limited 2022 Annual Report Supplemental Announcement](index=1&type=section&id=Supplemental%20Announcement%20to%20the%20Annual%20Report%20for%20the%20Year%20Ended%20December%2031%2C%202022) This supplemental announcement provides additional details regarding the company's restricted share unit and share award schemes for the year ended December 31, 2022 [Background and Purpose of the Announcement](index=1&type=section&id=Announcement%20Background) This announcement supplements Peijia Medical Technology (Holdings) Limited's 2022 annual report, providing additional details on the company's restricted share unit and share award schemes - This announcement is a supplement to Peijia Medical Technology (Holdings) Limited's annual report for the year ended December 31, 2022, published on April 24, 2023[2](index=2&type=chunk) - The supplementary content primarily concerns information related to the company's restricted share unit scheme and share award scheme[2](index=2&type=chunk) [Changes in Restricted Share Unit Scheme](index=1&type=section&id=Restricted%20Share%20Unit%20Scheme) During the reporting period, changes occurred in the company's restricted share unit scheme, primarily involving forfeiture of shares due to employee resignations Changes in Restricted Share Unit Scheme (During Reporting Period) | Grantees | Cancelled during reporting period (shares) | Lapsed during reporting period (shares) | Forfeited during reporting period (shares) | | :------------ | :----------------------------------------- | :-------------------------------------- | :----------------------------------------- | | 55 Employees | | 60,000 | (See attached) | | Two Employees | | N/A | | | Nine Employees | | N/A | | | Total | | 60,000 | | - Due to the resignation of certain grantees (55 employees) from the company, **60,000 restricted shares** were forfeited[3](index=3&type=chunk) [Details of Share Award Scheme](index=2&type=section&id=Share%20Award%20Scheme) The share award scheme aims to incentivize employees and directors contributing to the group, defining eligibility and the scheme's effective duration [Participant Eligibility](index=2&type=section&id=Participants%20of%20the%20Share%20Award%20Scheme) Eligibility for the share award scheme extends to employees and directors who have contributed or are expected to contribute to the group - Participants include full-time or part-time employees and directors of any member company within the group, provided the Board or authorized persons, at their sole discretion, deem they have contributed or will contribute to the group[4](index=4&type=chunk) - Individuals are ineligible if local laws and regulations prohibit the grant, acceptance, or vesting of awards, or if the Board determines that compliance would lead to exclusion[4](index=4&type=chunk) [Remaining Term of the Scheme](index=2&type=section&id=Remaining%20Term%20of%20the%20Share%20Award%20Scheme) The share award scheme's validity extends for ten years from its adoption date, with approximately nine years remaining at the reporting period end - The share award scheme is effective and valid from its adoption date until the business day immediately preceding the tenth anniversary of the adoption date[5](index=5&type=chunk) - As of the end of the reporting period, the remaining term of the share award scheme is approximately **nine years**[5](index=5&type=chunk) [Other Information and Board Composition](index=2&type=section&id=Other%20Information) This supplemental announcement's additional information does not alter other content in the annual report and lists the Board of Directors as of the announcement date - The additional information contained in this announcement does not affect other information in the annual report, and all other information in the annual report remains unchanged[5](index=5&type=chunk) - The announcement lists the Executive Directors (Ms. LI Jing, Mr. Silvio Rudolf SCHAFFNER), Non-executive Directors (Mr. Arthur Crosswell BUTCHER, Ms. June CHANG), and Independent Non-executive Directors (Dr. WANG Yuqi, Ms. NI Hong, Ms. PAN Jianer) as of the announcement date[5](index=5&type=chunk)