Financial Performance - Kangji Medical achieved a revenue of RMB1,008.6 million, representing a year-on-year increase of approximately 8.9%[3]. - The profit attributable to owners of the parent company reached RMB581.4 million, reflecting a year-on-year increase of approximately 15.4%[3]. - For the year ended December 31, 2024, the company achieved revenue of RMB1,008.6 million, representing an increase of 8.9% compared to 2023, primarily driven by increased sales of disposable products[23][37]. - The net profit attributable to owners of the parent increased by 15.4% from RMB504.0 million in 2023 to RMB581.4 million in 2024, mainly due to higher revenue and other income and gains[24][37]. - The Group's revenue for the year ended December 31, 2024, amounted to RMB1,008.6 million, representing an increase of 8.9% compared to RMB926.0 million for the year ended December 31, 2023[67]. - Revenue from disposable products reached RMB898.8 million for the year ended December 31, 2024, reflecting an increase of 11.7% from RMB804.9 million in 2023, accounting for 89.1% of total revenue[68]. - The Group's gross profit increased by 7.6% to RMB 797.6 million, with a gross profit margin of 79.1%, slightly down from 80.0% in the previous year[91]. - The cost of sales for the year was RMB 211.0 million, an increase of 14.1% compared to RMB 184.8 million in 2023, aligning with revenue growth[86]. - Other income and gains rose to RMB 182.2 million in 2024 from RMB 155.4 million in 2023, primarily due to a non-recurring gain of RMB 27.3 million from the deconsolidation of Weijing Medical[97][98]. - Income tax expenses for the year ended December 31, 2024, were RMB 113.6 million, a decrease of 16.8% from RMB 136.5 million for the year ended December 31, 2023[118]. Market Expansion and Strategy - The Group won the bidding for a full range of ligation clip products in the nationwide centralized VBP activities, which is expected to enhance market share[4]. - The overseas business maintained good growth momentum, particularly benefiting from increased sales in the European market[4]. - The Group plans to optimize its product structure and strengthen academic initiatives to support the development of China's minimally invasive surgery industry[8]. - The Group will continue to allocate resources to seize opportunities from centralized procurement in China and accelerate overseas product registration[4]. - The strategic focus on minimally invasive surgical instruments and consumables positions the Group for stable future growth[4]. - The Group is strengthening its overseas commercial network to strategically position itself for long-term growth opportunities in global markets[56]. Research and Development - The Group's strategic investment in Hangzhou Weijing Medical Robot Co., Ltd. focuses on laparoscopic surgical robots, with the SR01-200 robot receiving NMPA approval in April 2025[5]. - The Group's new R&D building in Hangzhou became operational in June 2024, enhancing R&D capabilities and supporting innovation[49]. - The Group conducted 12 sessions of the "Dialogue with Medical Experts" series in 2024 to align product development with real-world surgical practices[44]. - The Group introduced a new absorbable knotless suture, a Class III medical device, which enhances surgical efficiency by eliminating manual knot-tying[45]. - The Group's four-arm surgical robotic system completed multi-specialty human clinical trials in March 2024, with regulatory approval expected in Q2 2025[50]. - The Group plans to establish a mass production base for surgical robot systems in Tonglu County, Hangzhou, to enhance product development and production capacity[52]. Human Resources and Management - The Group had 1,007 employees as of December 31, 2024, with total staff remuneration expenses amounting to RMB173.4 million, an increase from RMB163.1 million in 2023[155]. - The total employee compensation expenses reflect a year-over-year increase of approximately 6.4% from the previous year[159]. - The company has implemented a stock option plan and restricted share unit plan to recognize and incentivize contributions from directors, senior management, and employees[160]. - The group has a structured compensation policy for directors and senior management based on comparable company salaries and individual performance[159]. - Mr. Zhong, one of the founders, has over 20 years of experience in the group and serves as the Chairman and CEO, responsible for overall business management and corporate development[161]. - Ms. Shentu, also a founder, has been with the group for over 20 years and holds the position of Vice General Manager, focusing on business strategy and corporate development[167]. Investment and Financial Position - The company increased its equity interest in Weijing Medical from 35% to approximately 41.99% during the reporting period, supporting the development of laparoscopic surgical robots[28]. - The group recorded a gain of RMB 27.3 million from the deconsolidation of Weijing Medical, which is now treated as an investment in an associate[109][111]. - As of December 31, 2024, the group's carrying value for its investment in Weijing Medical was approximately RMB 377.8 million, representing about 12.9% of total assets[113]. - The Group's net current assets decreased to RMB1,803.0 million as of December 31, 2024, down RMB1,386.9 million from RMB3,189.9 million as of December 31, 2023, mainly due to the declaration of dividends totaling RMB1,663.9 million[135][137]. - The Group did not have any outstanding bank loans or borrowings as of December 31, 2024, indicating a strong liquidity position[145][150]. - The Group intends to utilize net proceeds from the Global Offering for strategic investments and capital asset acquisitions, with no additional plans for material investments disclosed[154][158]. Product Performance - Revenue from disposable trocars generated revenue of RMB430.4 million, a 9.1% increase from RMB394.4 million in 2023, representing approximately 42.7% of total revenue[69]. - Ligation clips recorded revenue of RMB234.9 million, up 3.0% from RMB228.1 million in 2023, accounting for approximately 23.3% of total revenue[70]. - Revenue from disposable electrocoagulation forceps amounted to RMB 139.9 million, with a growth rate of 14.2%, contributing approximately 13.9% to total revenue[74]. - Revenue from ultrasonic scalpels increased by 37.8% to RMB 52.4 million compared to RMB 38.0 million in 2023, driven by market development efforts[75]. - Revenue from reusable products decreased by 9.3% to RMB 109.8 million from RMB 121.1 million in the previous year, primarily due to cyclical purchasing needs[76]. Corporate Governance - The Group has a strong focus on corporate governance, with key personnel like Mr. Yin overseeing investor relations and corporate matters[175]. - The Group's leadership structure emphasizes independent oversight and diverse expertise, which is crucial for navigating market challenges[187]. - Mr. Jiang has 35 years of experience in the medical and medical device industry, having held various clinical and managerial positions[190]. - Mr. Guo Jian, aged 69, was appointed as an independent non-executive director on March 7, 2020, and is responsible for supervising the Board[198].

智通财经APP获悉，高盛发布研报称，对康基医疗(09997)的评级为买入，基于2027年预期市盈率倍数17 倍(经折现)、三年预期每股收益复合年增长率12%以及折现率10%，给出12个月目标价9.3港元。截至目 前，威京医疗的四臂手术机器人已获批，这符合该行之前的预期(详见2024年下半年财报回顾)。康基医 疗召开了业务更新电话会议，主要聚焦商业化战略、产能规划和研发方向。 高盛主要观点如下： 威京医疗四臂手术机器人获批，关注商业化进展 康基医疗持有威京医疗约41.99%的股权。该行预计2025财年手术机器人带来的收入贡献有限，公司目 标是到2027年实现收支平衡。更值得关注的是耗材在中长期的贡献，在品牌、分销渠道和学术培训资源 方面，该行认为这与康基医疗的核心耗材业务存在协同效应。该行将密切关注机器人的安装情况和医生 的反馈。目前来看，国内主要参与者在外观设计和机械臂方面尚未出现显著差异(详见该行近期在 CMEF上的观察)，竞争格局最终将围绕市场份额的变化展开。 商业化团队已组建，定价可能具有竞争力：目前已组建了一支超过150人的团队;公司预计定价策略会将 价格定在1000万元人民币左右，以提高产品的可及性 ...

Summary of Kangji Medical Conference Call Company Overview - **Company**: Kangji Medical - **Industry**: Medical Devices, specifically focusing on minimally invasive surgical supplies and robotic surgery equipment Key Points and Arguments Business Segments - Kangji Medical operates primarily in two segments: minimally invasive surgical consumables and surgical robots. The consumables include disposable puncture devices and ligation clips, which have been integrated into centralized procurement without significantly affecting profit margins, indicating strong market competitiveness [3][4][5]. Financial Performance - The company reported stable performance in its consumables business, with gross margins unaffected by centralized procurement pricing. The 2024 annual report indicated that the gross margin for consumables remained robust despite price pressures [4][5]. - Kangji Medical has a solid financial position with no interest-bearing debt and cash reserves exceeding 2.5 billion RMB. Cumulative dividends and buybacks amount to 2.7 billion RMB, reflecting strong financial management [4][9]. Market Expansion - The company has a broad sales network covering over 3,500 hospitals in China and has expanded into more than 60 countries, with an expected overseas revenue growth rate of around 20% [4][8]. - Kangji Medical is actively developing its energy device platform, including disposable electrosurgical devices and ultrasonic scalpels, which have significant market potential due to low domestic replacement rates [4][7][14]. Product Development and Innovation - The surgical robot segment is anticipated to be a major growth driver, with a new product launch expected in Q2 2025. This aligns with national support for innovative medical devices [4][6][12]. - The company is also focusing on academic marketing strategies to mitigate the impact of centralized procurement on distributor channels, ensuring controlled effects on sales [15][16]. Competitive Landscape - In the energy device sector, Kangji Medical currently holds a market share of approximately 0.5% to 1%, with significant growth potential as the market is dominated by foreign brands like Johnson & Johnson and Medtronic [14][15]. - The company is well-positioned to benefit from a potential price war in the surgical robot market, leveraging its strong cash flow and strategic partnerships [23][24]. Future Growth Projections - Kangji Medical is expected to maintain double-digit revenue growth over the next 2-3 years, driven by favorable procurement policies and increased overseas market share. Despite potential pressure on net profit margins due to rising sales expenses, the company is projected to achieve sustained growth in both revenue and profits [12][29]. Valuation and Market Position - The company is valued at approximately 15 billion HKD based on absolute valuation models, with a target market cap of 14 to 15 billion HKD, indicating over 50% upside potential from current levels [30][33]. - Kangji Medical's surgical consumables account for over 60% of total revenue, with a stable income model similar to that of the IVD or printer industries, emphasizing the importance of consumables in driving revenue [25][24]. Recent Stock Performance - Following the annual report release, the stock experienced downward pressure due to delays in product approvals and adjustments in dividend payout ratios. However, the overall recommendation remains strong, suggesting that the stock is undervalued [35]. Additional Important Insights - The penetration rate of minimally invasive surgeries in China is only about 40%, compared to 80% in the U.S., indicating significant growth potential in the domestic market [13]. - The surgical robot market in China is still developing, with only about 2,450 units installed compared to the U.S. market, highlighting the need for further market penetration and price adjustments [19][20]. This comprehensive overview captures the essential aspects of Kangji Medical's business, financial health, market dynamics, and future outlook, providing a clear picture for potential investors.

Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue of RMB 1,008.6 million, representing an 8.9% increase compared to RMB 926.0 million in 2023[3] - Gross profit for the same period was RMB 797.6 million, up 7.6% from RMB 741.2 million in the previous year[3] - The profit attributable to equity holders of the parent company increased by 15.4% to RMB 581.4 million, compared to RMB 504.0 million in 2023[3] - Basic earnings per share rose to RMB 49.45 cents, a 14.8% increase from RMB 43.08 cents in the prior year[3] - The company declared a final dividend of RMB 0.24 per share for the fiscal year ending December 31, 2024[3] - The total comprehensive income for the year was RMB 579.1 million, compared to RMB 449.3 million in 2023[6] - The company reported a pre-tax profit of RMB 684.8 million, an increase from RMB 588.8 million in the previous year[4] - Other income and gains rose to RMB 182.2 million from RMB 155.4 million, contributing positively to overall profitability[4] Assets and Liabilities - Non-current assets totaled RMB 854,645 thousand in 2024, a decrease from RMB 883,129 thousand in 2023, reflecting a decline of approximately 3.1%[8] - Current assets decreased to RMB 2,063,645 thousand in 2024 from RMB 3,380,689 thousand in 2023, representing a significant drop of about 38.9%[8] - Total liabilities increased to RMB 289,395 thousand in 2024 from RMB 190,824 thousand in 2023, marking an increase of approximately 51.7%[9] - The company's net asset value decreased to RMB 2,628,895 thousand in 2024 from RMB 3,943,846 thousand in 2023, a decline of about 33.4%[9] - Current liabilities increased to RMB 260,604 thousand in 2024 from RMB 190,824 thousand in 2023, representing an increase of about 36.5%[9] - The company's goodwill was recorded as zero in 2024, down from RMB 167,209 thousand in 2023, indicating a complete write-off[8] Cash Flow and Investments - Operating cash flow for 2024 reached RMB 560,098 thousand, an increase of 32.6% compared to RMB 422,710 thousand in 2023[10] - Total revenue from investment activities generated a net cash inflow of RMB 1,040,501 thousand in 2024, compared to a net outflow of RMB 391,696 thousand in 2023[12] - The company reported a significant increase in interest income, totaling RMB 73,546 thousand in 2024, up from RMB 22,647 thousand in 2023[10] - The financing activities resulted in a net cash outflow of RMB 1,695,521 thousand in 2024, compared to RMB 243,532 thousand in 2023, primarily due to increased dividend payments[14] Research and Development - Research and development expenses decreased to RMB 82.1 million from RMB 127.6 million in 2023, indicating a strategic focus on cost management[4] - The group launched a series of initiatives to enhance R&D capabilities, including the opening of a new R&D building in Hangzhou equipped with upgraded facilities to support innovation and product development[78] - The group introduced a new absorbable suture product that does not require manual knot tying, improving surgical efficiency and simplifying complex procedures[75] Market and Sales Performance - Revenue from disposable products reached RMB 898.8 million, up 11.7% from RMB 804.9 million in the previous year, accounting for 89.1% of total revenue[88] - Revenue from mainland China was RMB 909,711,000, up from RMB 840,066,000, representing a growth of 8.3%[26] - Export sales reached RMB 98.9 million for the year ending December 31, 2024, marking a 15.1% year-on-year growth, primarily due to increased sales in the European market[69] - The company anticipates that the national centralized procurement led by Fujian Province will enhance market penetration and drive the import substitution process, with over 10 provinces expected to implement this by the end of March 2025[66] Corporate Governance and Compliance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[133] - The company has confirmed compliance with all applicable provisions of the Corporate Governance Code during the reporting period[135] - The audit committee, consisting of independent non-executive directors, has reviewed the annual performance for the year ending December 31, 2024, and recommended approval to the board[145] Employee and Shareholder Information - As of December 31, 2024, the company has 1,007 employees, with total employee compensation expenses amounting to RMB 173.4 million, up from RMB 163.1 million for the year ended December 31, 2023[128] - The proposed final dividend for the year ending December 31, 2024, is RMB 0.24 per share, subject to shareholder approval at the annual general meeting[140] - A total of 7,988,000 shares were cancelled during the year ending December 31, 2024[137] Strategic Investments - The company received equity investment from Zhejiang Fuzhe Technology Co., Ltd. to accelerate research and commercialization efforts[79] - The group considers its investment in Wei Jing Medical as a significant investment aligned with its long-term business strategy and growth[110] - The group acquired approximately 41.99% equity in Wei Jing Medical and approximately 23% equity in its associated company, which holds about 8% equity in Wei Jing Medical[109]

Revenue and Profit Growth - Revenue for the first half of 2024 increased by 13.6% to RMB458.4 million compared to the same period in 2023, driven by higher sales of disposable products[6] - Net profit attributable to owners of the parent rose by 11.9% to RMB285.8 million in 2024, up from RMB255.5 million in 2023, primarily due to increased revenue and other income[7] - Non-HKFRS adjusted net profit attributable to owners of the parent grew by 15.9% to RMB274.9 million in 2024, compared to RMB237.2 million in 2023[7] - The Group achieved a total revenue of RMB458.4 million for the six months ended June 30, 2024, representing a 13.6% increase from the corresponding period of the previous year[17] - The Group's net profit attributable to owners of the parent increased by 11.9% from RMB255.5 million in 2023 to RMB285.8 million in 2024[17] - The Group's adjusted net profit attributable to owners of the parent increased by 15.9% from RMB237.2 million in 2023 to RMB274.9 million in 2024[17] - Revenue for the six months ended June 30, 2024, increased to RMB 458.413 million, up from RMB 403.589 million in the same period in 2023[97] - Gross profit rose to RMB 363.123 million in H1 2024, compared to RMB 321.755 million in H1 2023[97] - Profit before tax for the period reached RMB 327.733 million, up from RMB 271.282 million in the previous year[97] - Net profit attributable to owners of the parent increased to RMB 285.847 million, compared to RMB 255.461 million in H1 2023[97] - Basic earnings per share for H1 2024 stood at RMB 24.39 cents, up from RMB 21.83 cents in H1 2023[99] - Total comprehensive income for the period increased to RMB 277.540 million, compared to RMB 226.240 million in H1 2023[99] - Profit for the period was RMB 285,847,000[106] - Total comprehensive income for the period was RMB 287,701,000[106] - Profit before tax for the six months ended 30 June 2024 was RMB 327.73 million, up from RMB 271.28 million in the same period in 2023[112] - Profit attributable to ordinary equity holders of the parent for the six months ended 30 June 2024 was RMB285.8 million, compared to RMB255.5 million in 2023[145] Product and Market Performance - Domestic revenue growth was driven by increased sales of disposable products such as trocars, ligation clips, and electrocoagulation forceps, as well as strong sales of new products like ultrasonic scalpels and staplers[12] - The Group achieved export sales of RMB40.2 million for the six months ended June 30, 2024, representing a 2.7% growth from the corresponding period of the previous year[15] - The Group added 11 new overseas product registrations during the Reporting Period, mainly in Central and South America as well as Southeast Asia[16] - The Group added 12 new product registrations in China during the Reporting Period, bringing the total to 104 domestic NMPA product registrations as of June 30, 2024[19] - The Group's product portfolio expanded with the approval of an absorbable knotless suture and multi-fire ligation clips, both Class III medical devices[21] - The company added 12 new product registrations in China during the reporting period, bringing the total to 104 registered products with NMPA, including 14 Class III, 55 Class II, and 35 Class I medical devices[23] - The company launched a new absorbable knotless suture (Class III medical device) and a continuous ligation clip (Class III medical device), both aimed at improving surgical efficiency[23] - Disposable products revenue reached RMB409.1 million, a 19.6% increase from RMB342.0 million in 2023, accounting for 89.3% of total revenue[35] - Disposable trocars revenue was RMB191.7 million, up 12.9% from RMB169.9 million in 2023, representing 41.8% of total revenue[36] - Ligation clips revenue increased by 4.5% to RMB103.8 million, accounting for 22.7% of total revenue[37] - Disposable electrocoagulation forceps revenue surged 90.2% to RMB23.7 million[31] - Ultrasonic scalpels revenue skyrocketed 1,115.7% to RMB3.7 million[31] - Other disposable products revenue grew 125.7% to RMB19.1 million[31] - Reusable products revenue decreased by 20.0% to RMB49.3 million[31] - Sales of disposable trocars in VBP regions, including Shandong, Fujian, Hunan, Hebei, and Guangdong, showed strong growth in the first half of 2024[36] - Disposable electrocoagulation forceps revenue reached RMB 67.0 million, accounting for 14.6% of total revenue, with a sales growth of 30.2%[39] - Ultrasonic scalpels sales increased by 90.2% to RMB 23.7 million compared to RMB 12.5 million in the same period last year[39] - Reusable products revenue decreased by 20.0% to RMB 49.3 million from RMB 61.6 million in the previous year[39] - Domestic market revenue increased by 14.7%, driven by distributor and non-distributor models[39] - Overseas market revenue grew by 2.7% to RMB 40.2 million, accounting for 8.8% of total revenue[39] - Sales of medical instruments in the Chinese Mainland accounted for RMB 418,213 thousand, contributing 91.2% of total revenue, while other countries/regions contributed RMB 40,200 thousand[129] R&D and Innovation - The company increased its equity interest in Weijing Medical from 35% to 37%, leveraging its platform for laparoscopic surgical robots[11] - The Group obtained 20 new patents in China during the Reporting Period, while Weijing Medical obtained 50 new patents on a standalone basis[19] - The company obtained 20 new patents in China, while Weijing Medical independently secured 50 new patents during the same period[23] - Weijing Medical's 4-arm surgical robotic system completed multi-specialty human clinical trials as of March 2024, with regulatory approval expected by the end of 2024[24] - Weijing Medical's single-port surgical robotic system finalized product design and is undergoing testing, with human clinical trials targeted to begin by the end of 2024[24] - The company's new R&D building in Hangzhou became operational in June 2024, enhancing research capabilities and attracting top talent[23] - The Group's new R&D building at its Hangzhou headquarters became operational in June 2024, enhancing innovation and product development capabilities[22] - The Group's new animal testing center is expected to accelerate product development efficiency and improve R&D quality[22] - Research and development expenses decreased by 27.8% to RMB43.4 million for the six months ended June 30, 2024, compared to RMB60.1 million in the same period in 2023, primarily due to reduced R&D expenses from Weijing Medical following its deconsolidation[55] - Research and development costs decreased to RMB 43.354 million in H1 2024, down from RMB 60.076 million in H1 2023[97] - The new R&D building at the Hangzhou headquarters became operational in June 2024, delaying the need for additional R&D centers in other cities[83] - The company extended the expected timeframe for utilizing unutilized IPO proceeds for R&D center establishment by two years, now set for four to six years from the IPO date[83] - RMB 433.5 million is allocated for R&D activities, including establishing R&D centers, with RMB 12.8 million utilized and RMB 77.3 million remaining unutilized as of June 30, 2024[85] Financial Performance and Expenses - Cost of sales increased by 16.4% to RMB 95.3 million, in line with revenue growth[42] - Gross profit increased by 12.9% to RMB 363.1 million, with a stable gross profit margin of 79.2%[45] - Disposable products contributed RMB 335.2 million to gross profit, with a gross profit margin of 81.9%[48] - Other income and gains increased to RMB 115.4 million, driven by a RMB 20.0 million increase in interest income and a RMB 27.3 million gain from deconsolidation[49] - Selling and distribution expenses rose by 19.9% to RMB 39.1 million due to increased staff costs and marketing-related expenses[50] - Administrative expenses increased by 12.0% to RMB50.9 million for the six months ended June 30, 2024, compared to RMB45.4 million in the same period in 2023, primarily due to higher staff costs and environmental landscaping expenses[51][54] - Other income and gains rose to RMB115.4 million for the six months ended June 30, 2024, up from RMB93.8 million in the same period in 2023, driven by a RMB20.0 million increase in interest income and a RMB27.3 million gain from the deconsolidation of Weijing Medical[52] - Sales and distribution expenses increased by 19.9% to RMB39.1 million for the six months ended June 30, 2024, compared to RMB32.6 million in the same period in 2023, mainly due to higher sales personnel costs and increased marketing-related expenses[53] - The Group recorded a gain of RMB27.3 million from the deconsolidation of Weijing Medical, calculated based on the difference between the fair value of the Group's retained interest and the carrying value of Weijing Medical's assets and liabilities[55] - Income tax expenses increased by 24.0% to RMB52.0 million for the six months ended June 30, 2024, compared to RMB42.0 million in the same period in 2023, primarily due to higher taxable income and accrued withholding tax on dividend repatriation[56] - Adjusted net profit for the reporting period attributable to owners of the parent was RMB 274.873 million, compared to RMB 237.185 million in the previous year[60] - Basic non-HKFRS adjusted earnings per share increased to RMB 23.46 cents from RMB 20.27 cents year-over-year[60] - Diluted non-HKFRS adjusted earnings per share rose to RMB 23.46 cents from RMB 20.18 cents compared to the previous year[60] - Fair value gain on financial assets decreased to RMB -46 thousand from RMB -2.269 million year-over-year[60] - Foreign exchange difference improved significantly to RMB 10.984 million from RMB -23.227 million in the previous year[60] - Share-based payment expenses decreased to RMB 6.183 million from RMB 7.273 million year-over-year[60] - Investment income on short-term financial products declined to RMB -842 thousand from RMB -53 thousand compared to the previous year[60] - Gain on deconsolidation of Weijing Medical was RMB -27.253 million, which was not present in the previous year[60] - The company uses non-HKFRS measures to eliminate impacts of non-operational or one-off expenses, including fair value gains, foreign exchange differences, and share-based payments[58][59] - Non-HKFRS measures have limitations and should not be considered superior to HKFRS measures, as they may not be comparable to similar measures used by other companies[61] - Selling and distribution expenses increased to RMB 39.062 million in H1 2024, compared to RMB 32.553 million in the same period last year[97] - Administrative expenses rose to RMB 50.854 million in H1 2024, up from RMB 45.416 million in H1 2023[97] - The company did not recommend the payment of any interim dividend for the six months ended June 30, 2024[94] - Total assets less current liabilities decreased to RMB 2,381,818,000 from RMB 4,072,994,000 compared to the previous period[102][104] - Net current assets decreased to RMB 1,571,350,000 from RMB 3,189,865,000[102] - Total equity decreased to RMB 2,362,728,000 from RMB 3,943,846,000[104] - Dividend declared amounted to RMB 1,007,140,000[106] - Share capital decreased to RMB 85,000 from RMB 86,000[104] - Reserves decreased to RMB 2,362,643,000 from RMB 3,649,676,000[104] - Non-controlling interests decreased to RMB 0 from RMB 294,084,000[104] - Cash and cash equivalents increased to RMB 2,717,713,000 from RMB 2,676,588,000[102] - Net cash flows from operating activities increased to RMB 221.72 million in 2024, up from RMB 169.55 million in 2023[112] - Net cash flows from/(used in) investing activities showed a significant increase to RMB 1,213.36 million in 2024, compared to a negative RMB 1,249.90 million in 2023[114] - Depreciation of property, plant, and equipment amounted to RMB 9.94 million in 2024, slightly down from RMB 10.66 million in 2023[112] - Share-based payment expense decreased to RMB 6.18 million in 2024 from RMB 7.27 million in 2023[112] - Purchases of items of property, plant, and equipment increased to RMB 35.30 million in 2024, up from RMB 23.62 million in 2023[114] - Proceeds from sales of financial assets at fair value through profit or loss were RMB 573.10 million in 2024, compared to RMB 9.18 million in 2023[114] - Disposal of a subsidiary resulted in a cash inflow of RMB 1,253.10 million in 2024[114] - Shares repurchased amounted to RMB 30.81 million in 2024, up from RMB 13.71 million in 2023[114] - Total equity as of 30 June 2023 (unaudited) was RMB 3,722.27 million, with retained profits of RMB 872.52 million[109] - Net increase in cash and cash equivalents for 2024 was RMB 1,399,394 thousand, compared to a decrease of RMB 1,099,951 thousand in 2023[116] - Cash and cash equivalents at the end of the period for 2024 were RMB 2,915,728 thousand, up from RMB 663,744 thousand in 2023[116] - Time deposits with original maturity of over three months when acquired increased to RMB 291,193 thousand in 2024, compared to none in 2023[116] - The Group adopted new and revised Hong Kong Financial Reporting Standards (HKFRSs) for the first time in the current period, including amendments to HKFRS 16, HKAS 1, and HKAS 7[119][120] - The amendments to HKFRS 16 did not impact the Group's financial position or performance as there were no sale and leaseback transactions with variable lease payments[120] - The 2020 and 2022 amendments to HKAS 1 clarified the classification of liabilities as current or non-current, with no impact on the Group's financial position[125] - Amendments to HKAS 7 and HKFRS 7 required additional disclosures for supplier finance arrangements, but the Group had no such arrangements, resulting in no impact[125] - The Group operates as a single reportable operating segment, with management monitoring overall performance for resource allocation and assessment[126] - Revenue from contracts with customers increased to RMB 458,413 thousand in the first half of 2024, up from RMB 403,589 thousand in the same period of 2023, representing a growth of 13.6%[128] - Bank interest income rose to RMB 62,630 thousand in 2024, compared to RMB 42,636 thousand in 2023, marking a 46.9% increase[131] - The company recorded a gain of RMB 27,253 thousand from the deconsolidation of a subsidiary in 2024, which was not present in 2023[131] - Government grants decreased slightly to RMB 24,120 thousand in 2024 from RMB 25,200 thousand in 2023[131] - The cost of inventories sold increased to RMB 90,510 thousand in 2024, up from RMB 80,372 thousand in 2023[135] - The company incurred a share-based payment expense of RMB 6,183 thousand in 2024, down from RMB 7,273 thousand in 2023[135] - Current income tax in the Chinese Mainland increased to RMB 61,832 thousand in 2024, compared to RMB 36,301 thousand in 2023[141] - The total income tax expense for the period was RMB 52,047 thousand in 2024, up from RMB 41,985 thousand in 2023[141] - Final dividend of RMB0.41 per share and special dividend of RMB0.99 per share, totaling approximately RMB1.7 billion, were approved and paid in 2024[143] - Weighted average number of ordinary shares in issue for the six months ended 30 June 2024 was 1,171,810,382, slightly increased from 1,170,059,826 in 2023[147] - Carrying amount of property, plant, and equipment increased to RMB229.5 million as of 30 June 2024, up from RMB220.9 million at the end of 2023[149] - Investment in an associate, Hangzhou Weijing Medical Robot Co., Ltd., amounted to RMB351.5 million as of 30 June 2024, with the company holding a 37% ownership interest[150][152] - Trade receivables stood at RMB217.4 million as of 30 June 2024, with an impairment of RMB3.3 million, compared to RMB225.5 million and RMB4.1 million impairment

Financial Performance - The company achieved revenue of RMB 458.4 million for the six months ended June 30, 2024, representing a 13.6% increase compared to RMB 403.6 million in the same period of 2023[3]. - Gross profit for the reporting period was RMB 363.1 million, up 12.9% from RMB 321.8 million in the previous year[3]. - Net profit attributable to the parent company increased by 11.9% to RMB 285.8 million from RMB 255.5 million in 2023[3]. - Adjusted net profit under non-HKFRS increased by 15.9% to RMB 274.9 million from RMB 237.2 million in the prior year[3]. - Basic and diluted earnings per share were RMB 24.39, reflecting an increase of 11.7% and 12.2% respectively compared to RMB 21.83 and RMB 21.73 in 2023[3]. - The company reported a total comprehensive income of RMB 277.5 million for the period, compared to RMB 226.2 million in the same period last year[8]. - The increase in sales was primarily attributed to the rise in sales of one-time products[1]. - The company reported a significant increase in other income and gains, totaling RMB 115.4 million compared to RMB 93.8 million in the previous year[6]. - Operating cash flow before tax profit for the six months ended June 30, 2024, was RMB 327,733 thousand, an increase of 20.8% from RMB 271,282 thousand in 2023[11]. - Net cash flow from operating activities for the six months ended June 30, 2024, was RMB 221,722 thousand, up 30.7% from RMB 169,550 thousand in 2023[12]. Assets and Liabilities - Total assets less current liabilities amounted to RMB 2,381.8 million as of June 30, 2024, down from RMB 4,072.9 million at the end of 2023[10]. - The company reported a total of RMB 30,149,000 in trade payables as of June 30, 2024, compared to RMB 34,146,000 as of December 31, 2023, indicating a decrease of about 11.7%[34]. - The company has a total of RMB 117,521,000 in prepayments, other receivables, and other assets as of June 30, 2024, significantly up from RMB 9,711,000 as of December 31, 2023[30]. - The company’s total liabilities, including trade payables and other payables, amounted to RMB 245,223,000 as of June 30, 2024, compared to RMB 82,084,000 as of December 31, 2023[35]. - The net current asset value decreased to RMB 1,571.4 million as of June 30, 2024, down RMB 1,618.5 million from RMB 3,189.9 million as of December 31, 2023, primarily due to the declaration and distribution of special dividends totaling RMB 1,663.9 million[69]. Cash Flow and Investments - Cash and cash equivalents at the end of June 30, 2024, totaled RMB 2,915,728 thousand, significantly up from RMB 663,744 thousand in 2023[13]. - Net cash flow from investing activities for the six months ended June 30, 2024, was RMB 1,213,364 thousand, compared to a cash outflow of RMB 1,249,899 thousand in 2023[12]. - The company’s cash flow from interest received was RMB 36,447 thousand for the six months ended June 30, 2024, compared to RMB 9,268 thousand in 2023[12]. - The company has confirmed compliance with the Corporate Governance Code during the reporting period[79]. - The company plans to utilize the net proceeds from its global offering for strategic investments and capital asset acquisitions for expansion[73]. Revenue Breakdown - Sales of medical devices in mainland China reached RMB 418,213,000, up from RMB 364,464,000, representing a growth of 14.8% year-over-year[19]. - Domestic revenue growth was driven by increased sales of core disposable products, including disposable puncture devices and hemostatic clips, as well as strong year-on-year growth in new products like ultrasonic cutting hemostatic devices[38]. - Export sales reached RMB 40.2 million for the six months ended June 30, 2024, reflecting a 2.7% increase year-on-year, primarily due to sales growth in the European market[39]. - Sales of disposable products reached RMB 409.1 million, accounting for approximately 89.3% of total revenue, with a growth of 19.6% from RMB 342.0 million in 2023[47]. - The revenue from disposable electrocautery forceps was RMB 67.0 million, representing a growth of 30.2% compared to RMB 51.5 million in 2023, and accounted for about 14.6% of total revenue[49]. Research and Development - The company registered 12 new products in China during the reporting period, bringing the total to 104 registered products as of June 30, 2024[41]. - The company has completed clinical trials for its four-arm surgical robot system and expects regulatory approval by the end of 2024[42]. - A new research and development building was put into use in June 2024, enhancing the company's innovation and product development capabilities[42]. - The company has obtained 20 new patents during the reporting period, with its subsidiary, Weijing Medical, securing an additional 50 patents[41]. - Research and development expenses decreased by 27.8% to RMB 43.4 million, down from RMB 60.1 million in the previous year, due to reduced R&D spending at Weijing Medical[60]. Shareholder Returns - The company did not recommend any interim dividend for the six months ended June 30, 2024[4]. - The company approved a final dividend of RMB 0.41 per ordinary share, totaling approximately RMB 1,700,749,000, to be paid on July 18, 2024[25]. - The company repurchased a total of 5,509,500 shares at a total cost of approximately HKD 33.8 million for the six months ended June 30, 2024, compared to HKD 15.7 million for the same period in 2023[82]. - A total of 1,490,500 shares were canceled during the six months ended June 30, 2024, with an additional 4,619,000 shares canceled after the reporting period[82]. Employee and Compensation - As of June 30, 2024, the group had 964 employees, a decrease from 982 employees as of June 30, 2023[74]. - Total employee compensation expenses for the six months ended June 30, 2024, amounted to RMB 736 million, compared to RMB 679 million for the same period in 2023[74].

那么我们的具体流程是分为公司介绍和QA两个部分那么首先第一步先请尹总对公司情况以及最新的进展做一个简单的梳理有请尹总 好的好的谢谢钱总也谢谢各位投资者对康治医疗的关注和支持那么我们先简单的介绍一下公司情况因为在线的投资者可能有一些对公司比较熟悉也耐心的听我介绍几分钟那么有一些可能相对来说不是那么的了解那么我刚好也给大家稍微普及一下我现在共享一下屏幕就是我把PPT给大家打出来 我先给大家介绍一下因为我们是港股它是没有记报所以我们是就是I3年的整个年报的情况给大家做一个介绍 那么我先介绍一下就是23年公司的一个回顾那么23年跟康基疗的总的收入是9.3亿人民币同比增长17.8%那么其中国内的销售是同比增长17.5%外贸同比增长20.6%那么外销的收入增长是占9.3%那么22年是9.1略有提升那么一次性产品还是占大头就占86.9% 那么22年是87.6那么我们的净利润是规模是5亿那么规模的净利润率是54.5那么我们的这个每股收益是14.3那么整个公司的海外销售那么23年是有一个比较大的一个提升我们现在覆盖了58个国家那么比22年要增加了11个国家 那么23年我们在专利和产品注册方面我们也有不少的一些成绩那么这里就不赘 ...

Financial Performance - Kangji Medical achieved operating revenue of RMB926.0 million in 2023, representing a year-on-year growth of approximately 17.8%[6] - The non-HKFRS adjusted net profit attributable to owners of the parent for the Reporting Period was RMB504.0 million, representing a year-on-year growth of approximately 5.3%[6] - Revenue for 2023 increased by 17.8% to RMB926.0 million compared to 2022, driven by domestic market growth and recovery in elective surgery volumes post-COVID-19 restrictions, along with rapid export sales growth due to new distributor development[16] - Net profit attributable to owners of the parent increased by 5.3% to RMB504.0 million in 2023, primarily due to sales growth, partially offset by increased R&D expenses and income tax expenses[16] - Gross profit for 2023 was RMB741.2 million, up from RMB635.2 million in 2022, reflecting improved profitability[14] - Non-current assets increased to RMB883.1 million in 2023 from RMB861.2 million in 2022, while current assets rose to RMB3,380.7 million from RMB3,123.8 million[14] - Earnings per share (basic) for 2023 were RMB43.08 cents, up from RMB39.63 cents in 2022[14] - Non-HKFRS adjusted net profit for the year attributable to owners of the parent increased to RMB538.2 million in 2023 from RMB498.7 million in 2022[14] - Total equity grew to RMB3,943.8 million in 2023, up from RMB3,718.8 million in 2022[14] - Total revenue for 2023 was RMB926.0 million, a 17.8% increase from 2022[20] - Net profit attributable to owners of the parent increased by 5.3% to RMB504.0 million[20] - Adjusted net profit increased by 7.9% to RMB538.2 million, excluding certain financial items[20] - The company's total revenue for 2023 was RMB 926.0 million, a 17.8% increase compared to RMB 786.4 million in 2022[32][33] - Revenue from disposable products increased by 16.8% to RMB 804.9 million in 2023, accounting for 86.9% of total revenue[34] - Disposable trocars revenue grew by 8.1% to RMB 394.4 million, representing 42.6% of total revenue[34] - Polymer ligation clips revenue increased by 18.1% to RMB 227.3 million in 2023[31] - Disposable electrocoagulation forceps revenue surged by 30.1% to RMB 122.6 million[31] - Ultrasonic scalpels revenue experienced significant growth of 109.3% to RMB 38.0 million[31] - Reusable products revenue increased by 24.5% to RMB 121.1 million, with 4K endoscopic camera systems growing by 57.4%[31] - Gross profit increased by 16.7% to RMB741.2 million, with gross profit margin stable at 80.0%[46] - Gross profit increased by 16.7% from RMB 635.2 million in 2022 to RMB 741.2 million in 2023, with gross margin remaining stable at 80.0%[47] - Disposable products contributed RMB 671.71 million with a gross margin of 83.4%, while reusable products contributed RMB 69.49 million with a gross margin of 57.4%[48] - Other income and gains increased to RMB 155.4 million in 2023, primarily due to a RMB 21.8 million increase in interest income from bank deposits[49][50] - Selling and distribution expenses rose by 30.9% to RMB 69.8 million in 2023, driven by increased staff costs and marketing-related expenses[51] - Administrative expenses increased by 40.7% to RMB 100.3 million in 2023, mainly due to higher staff costs and resumed business activities post-COVID-19 restrictions[51] - Research and development expenses surged by 93.2% to RMB 127.6 million in 2023, driven by increased R&D projects and product upgrades[51] - Income tax expenses rose by 33.8% to RMB 136.5 million in 2023, due to higher taxable profits and withholding taxes on distributed profits[52][54] - Net profit attributable to owners of the parent increased to RMB 504,021,000 in 2023 from RMB 478,735,000 in 2022, reflecting a growth of 5.3%[57] - Non-HKFRS adjusted net profit for the year attributable to owners of the parent rose to RMB 538,183,000 in 2023, compared to RMB 498,711,000 in 2022, marking an increase of 7.9%[57] - Basic earnings per share (EPS) increased to 46.00 cents in 2023 from 41.28 cents in 2022, while diluted EPS rose to 45.90 cents from 41.28 cents[57] Product Development and Innovation - Kangji Medical successfully organized and carried out many thematic academic promotion conferences and training sessions in 2023, including single-port procedures training centers established through cooperation with local reputable hospitals[9] - The company is focusing on key development areas including biodegradable implantable consumables, which is one of the most important segments in the medical field[9] - Weijing Medical, a subsidiary of Kangji Medical, launched clinical trials for four-arm surgical robots in the fourth quarter of 2023[9] - The company is actively increasing the market share of its existing core products and expanding the geographical presence of new products, including ultrasonic scalpels, 4K endoscopic camera systems, and disposable products[9] - Kangji Medical is confident in achieving relatively high growth rates for new products in 2024[9] - The company added 14 new product registrations in China during the reporting period, bringing the total to 92 NMPA product registrations, including 12 Class III, 46 Class II, and 34 Class I medical devices[21] - The company obtained 111 new patents in China, with 56 of these coming from Weijing Medical[21] - Weijing Medical initiated clinical trials for its 4-arm surgical robot in Q4 2023 and expects to obtain registration approval by the end of 2024[22][25] - The company is developing a single-port surgical robotic system, with product design finalization expected and plans to commence type inspection and animal trials in the second half of 2024[22][25] - The company established a dedicated team within the R&D department to enhance project progress management, focusing on documentation, time and cost management, and problem-solving capabilities[21] - The company is expanding its R&D team, particularly in areas like absorbable implantable consumable products and energy platforms, recognizing their importance in advancing medical treatments[21] Market Expansion and Sales Strategy - Kangji Medical expects the healthcare industry to gradually resume normal operating levels in the second half of 2024, which will be conducive to the launch of new products and strengthen face-to-face academic exchanges[9] - Domestic sales growth driven by disposable products and new products like ultrasonic scalpels and 4K endoscopic camera systems[19] - Won bids for polymer ligation clips in Anhui province with the highest weighted score and hospital procurement volume[19] - Export sales reached RMB86.0 million, a 20.6% increase from the previous year[20] - VBP implementation for disposable trocars in Guangdong province switched to a "logistics partner + academic promotion partner" model[20] - Added 22 overseas product registrations, mainly in Central and South America and Southeast Asia[20] - VBP policies favor domestic industry leaders with established track records and reliable supply[20] - Growth in European and South American markets such as France, Spain, and Peru[20] - The company strengthened its local distribution network by hiring additional district sales managers and optimizing academic support mechanisms[23][26] - The company transitioned back to in-person academic promotion activities in 2023, including thematic conferences, training sessions, and single-port procedure training centers[24][26] - The company expects the medical industry to return to normal levels in the second half of 2024, benefiting new product promotion and in-person academic exchanges[27] - The company is focusing on increasing the market share of core products like trocars and polymer ligation clips, while expanding sales of new products such as ultrasonic scalpels and 4K endoscopic camera systems[27] - Export sales growth contributed to revenue increase, driven by overseas market demand and expanded distribution channels[32][33] - Domestic market revenue increased by 17.5%, driven by distributor and non-distributor models in VBP provinces[36][38] - Overseas market revenue grew by 20.6% to RMB86.0 million, with expansion to 58 countries/regions and increased product registrations[37][38] Corporate Governance and Leadership - Mr. Zhong, the founder and CEO, has been with the company for nearly 20 years and holds multiple leadership roles including Chairman and CEO[74] - Ms. Shentu, co-founder and executive Director, has also been with the company for nearly 20 years and serves as vice general manager[76] - Mr. Zhong holds a bachelor's degree in business administration from China University of Geosciences and an executive master's degree from Cheung Kong Graduate School of Business[75] - Ms. Shentu holds a college degree in accounting from China University of Geosciences[77] - Mr. Zhong was awarded Outstanding T-Merchants in 2016 and Outstanding Hangzhou Entrepreneur in 2018[75] - Ms. Shentu was awarded Top Ten Innovation Women in Zhejiang in 2019 and Outstanding Hangzhou Entrepreneur Award in 2020[77] - Mr. Zhong and Ms. Shentu are spouses and both serve as executive Directors of the company[78] - Ms. Shentu has been a member of the Chinese People's Political Consultative Conference of Tonglu County since 2007[77] - Mr. YIN Zixin was appointed as an executive Director on April 28, 2022, and has served as a vice general manager at Hangzhou Kangji since August 2020[79] - Ms. CAI Li was appointed as a non-executive Director on March 13, 2020, and is responsible for participating in decision-making for important matters of the Group[79] - Ms. CAI Li served as a non-executive director at Shanghai Bio-heart Biological Technology Co., Ltd. from September 2020 to November 2022, and at Zhaoke Ophthalmology Limited from October 2020 to November 2023[80] - Ms. CAI Li holds a bachelor's degree in biomedical engineering and economics from Yale University, obtained in May 2007[81] - Mr. Jiang Feng, an independent non-executive director, has nearly 40 years of experience in the medical and medical device industry, with extensive experience in clinical and managerial roles at hospitals and pharmaceutical companies[82] - Mr. Jiang served as an independent director at Dirui Industrial Co., Ltd. (stock code: 300396) from December 2010 to August 2016[82] - Mr. Jiang served as an independent director at Guanhao Biotech Co., Ltd. (stock code: 300238) from May 2014 to September 2017[82] - Mr. Jiang served as the head of China Medical Device Information Magazine from July 2005 to March 2017[82] - Mr. Jiang served as a non-executive director at Kaisa Health Group Holdings (stock code: 0876) from June 2015 to February 2017[82] - Mr. Jiang served as an independent director at Zhongzhu Healthcare Holding Co., Ltd. (stock code: 600568) from March 2016 to April 2019[82] - Mr. Jiang is currently an independent director at Eyebright Medical Technology (Beijing) Inc. (stock code: 688050) since January 2022[82] - Mr. Jiang is currently a non-executive director at Lifetech Scientific (Shenzhen) Co., Ltd. (stock code: 01302) since April 2014[82] - Mr. Jiang holds a master's degree in respiratory medicine and a doctor's degree in cardiothoracic surgery from Air Force Medical University, and a second master's degree in business administration from Tsinghua University[83] - Mr. GUO Jian, aged 68, was appointed as an independent non-executive Director on March 7, 2020, effective from June 4, 2020, primarily responsible for supervising and providing independent judgment to the Board[84] - Mr. CHEN Weibo, aged 50, was appointed as an independent non-executive Director on March 7, 2020, effective from June 4, 2020, with nearly 30 years of experience in accounting and financial management[84] - Mr. CHEN Weibo received his bachelor's degree in accounting from Zhejiang University of Finance & Economics in July 1995 and was conferred the qualification of senior accountant by the Zhejiang Province Human Resources and Social Security Department in April 2009[85] - Mr. ZHONG Ming, aged 48, was appointed as the chief executive officer on August 24, 2004, responsible for the overall management of the Group's business[86] - Ms. SHENTU Yinguang, aged 44, was appointed as a vice general manager on November 8, 2016, responsible for human resources and administration of the Group[86] - Mr. YIN Zixin, aged 38, was appointed as a vice general manager on March 7, 2020, mainly responsible for investor relationships, investment, and corporate governance matters of the Group[86] - Ms. HU Yanyu, aged 47, was appointed as the chief financial officer on September 15, 2023, primarily responsible for the management of financial affairs and investor relations of the Group[86] - Ms. HU Yanyu has more than 15 years of experience in enterprise value management, financial management, and investment management, previously working at Sunny Optical Technology (Group) Company Limited and Shenzhen Eastern Marathon Investment Management Company Limited[86] - The company's principal activities include designing, developing, manufacturing, and selling MISIA products focused on OBGYN, urology, general surgery, and thoracic surgery, with no significant changes during the reporting period[96] - The company was listed on the Main Board of the Stock Exchange on June 29, 2020, with stock code 9997[95] - Mr. CHENG Da, aged 46, is responsible for product registration and international business, having joined the company in March 2011[88] - Mr. YUE Jiqiang, aged 44, is primarily responsible for research and development, having joined the company in May 2009[88] - Mr. TANG Wenpeng, aged 49, is mainly responsible for production and quality control, having joined the company in March 2017[89] - Mr. JU Jianyong, aged 48, joined the company on January 1, 2021, as head of domestic sales and marketing, with extensive expertise in academic promotions across multiple specialties[90] - Mr. WAN Siu Keung, aged 40, was appointed as the company secretary on May 3, 2022, with over 16 years of experience in auditing, financial management, and corporate secretary roles[92] - The company was incorporated in the Cayman Islands on February 12, 2020, and started operating in Hong Kong under the name "Kangji Medical Holdings Limited" on April 3, 2020[95] Risk Management and Compliance - The Group faces market risks due to changes in China's healthcare regulatory framework, including centralized procurement and pricing pressures[102] - Potential pandemic outbreaks could disrupt the Group's supply chain and delay elective surgical procedures[102] - The Group is exposed to financial risks, including credit risk, currency risk, interest rate risk, and liquidity risk[102] - The company complied with all relevant environmental and occupational health and safety laws and regulations in China during 2023, with no material adverse incidents or complaints[117] - The company's ESG report, prepared in accordance with Appendix C2 of the Listing Rules, is included in the annual report on pages 84 to 163[117] - The company did not enter into any significant contracts with controlling shareholders or their subsidiaries during the reporting period, except for directors' and senior management's service contracts[111] - No directors had material interests in any significant transactions, arrangements, or contracts related to the company's business during the reporting period[111] - The company did not have any management contracts concerning the administration of the whole or any substantial part of its business during the reporting period[113] - None of the directors waived or agreed to waive any remuneration, and no inducement payments were made to directors or other individuals for joining or leaving the company[115] - The company has maintained the required public float percentage under the Listing Rules[190] - The financial statements for the year ended December 31, 2023, were audited by Ernst & Young, and a resolution to reappoint Ernst & Young as the auditor for 2024 will be proposed at the annual general meeting[191] - The company has arranged appropriate liability insurance for its directors and senior management[190] - The company has complied with the CG Code and maintains high standards of corporate governance, with the board delegating responsibilities to four committees: Audit, Nomination, Remuneration, and ESG[197] - The board composition as of December 31, 2023, included executive, non-executive, and independent non-executive directors, with Ms. Frances Fang Chovanec resigning as an executive director on September 15, 2023[198] - The company has met the requirements of the Listing Rules regarding the appointment of independent non-executive directors, with at least one possessing appropriate professional qualifications or accounting expertise[199] - Frances Fang Chovanec resigned as Executive Director, CFO, and member of the ESG Committee on September 15, 2023, to pursue personal matters and other opportunities, and served as a consultant until December 31, 2023[200] - The Board of Directors complied with the Listing Rules by appointing at least three independent non-executive directors, including one with appropriate professional qualifications or accounting/financial management expertise[200] - The company met the Listing Rules requirement of having independent non-executive directors constituting one-third of the Board[200] - All independent non-executive directors confirmed their independence in accordance with the Listing Rules[200] Shareholder and Investor Relations - The Board recommended a final dividend of RMB41 cents per share and a special dividend of RMB99 cents per share to celebrate the Group's 20th anniversary, to be paid from distributable profits and the share premium account

Financial Performance - For the year ended December 31, 2023, the company achieved revenue of RMB 926.0 million, representing a growth of 17.8% compared to RMB 786.4 million in 2022[4]. - The net profit attributable to the owners of the parent company increased by 5.3% to RMB 504.0 million from RMB 478.7 million in the previous year[4]. - Basic earnings per share rose to RMB 43.08, an increase of 8.7% from RMB 39.63 in 2022[4]. - The company reported a gross profit of RMB 741.2 million, up from RMB 635.2 million in 2022, indicating a gross margin improvement[6]. - The total equity attributable to the owners of the parent company increased to RMB 3,649.8 million from RMB 3,373.0 million in 2022[10]. - The company reported a pre-tax profit of RMB 588,771 thousand for 2023, compared to RMB 563,144 thousand in 2022, reflecting a growth of 4.0%[11]. - The adjusted net profit attributable to the company's shareholders rose by 7.9% to RMB 538.2 million in 2023, compared to RMB 498.7 million in 2022[46]. - The total income tax expense rose to RMB 136,476,000 in 2023 compared to RMB 101,970,000 in 2022, reflecting an increase of approximately 33.8%[34]. Dividends and Shareholder Returns - The company plans to distribute a final dividend of RMB 0.41 per share and a special dividend of RMB 0.99 per share for the year ended December 31, 2023[4]. - The company approved a final dividend of RMB 0.1845 per share in 2023, totaling approximately RMB 224,498,000, compared to RMB 0.1723 per share in 2022, which amounted to about RMB 181,920,000[35]. - The company plans to distribute a final dividend of RMB 0.41 per share, totaling approximately RMB 498.08 million, and a special dividend of RMB 0.99 per share, totaling approximately RMB 1.20 billion, to celebrate its 20th anniversary[91]. - The proposed dividends will be paid in cash on or around July 18, 2024, subject to shareholder approval at the annual general meeting[91]. Research and Development - Research and development expenses increased significantly to RMB 127.6 million from RMB 66.0 million in 2022, reflecting the company's commitment to innovation[6]. - The company plans to continue its investment in research and development for minimally invasive surgical instruments and accessories[15]. - The company established a dedicated team for R&D project management to improve monitoring of project outcomes and enhance accountability among R&D personnel[48]. - The company plans to allocate RMB 433.5 million for R&D activities, including establishing an R&D center, with an expected completion timeline of four years[84]. - R&D expenses for the year ended December 31, 2023, amounted to RMB 127.6 million, a 93.3% increase from RMB 66.0 million for the year ended December 31, 2022, primarily due to increased spending on innovative product development and upgrades[66]. Cash Flow and Liquidity - The company's cash and cash equivalents decreased to RMB 2,676.6 million from RMB 2,818.4 million in the previous year[8]. - Cash and cash equivalents at the end of 2023 amounted to RMB 1,520,397 thousand, down from RMB 1,738,963 thousand in 2022[14]. - Operating cash flow for 2023 was RMB 419,615 thousand, an increase of 31.4% compared to RMB 319,313 thousand in 2022[11]. - Cash and cash equivalents as of December 31, 2023, were RMB 2,973.5 million, an increase of RMB 155.1 million from RMB 2,818.4 million as of December 31, 2022, primarily due to net cash generated from operations[72]. - Net current assets as of December 31, 2023, were RMB 3,189.9 million, an increase of RMB 219.8 million from RMB 2,970.1 million as of December 31, 2022, attributed to increased cash from operations[73]. Market and Sales Performance - The company experienced a significant increase in export sales due to the expansion of distributors in new regions[4]. - Revenue from mainland China amounted to RMB 840,066 thousand, up from RMB 715,097 thousand in the previous year, reflecting a growth of 17.5%[23]. - Other revenue sources contributed RMB 85,957 thousand, compared to RMB 71,270 thousand in 2022, marking a growth of 20.7%[23]. - The company’s core product sales, including disposable products and new technologies like ultrasonic cutting hemostatic knives, significantly contributed to revenue growth[46]. - Disposable products generated revenue of RMB 804.9 million for the year ended December 31, 2023, an increase of 16.8% compared to RMB 689.1 million for the year ended December 31, 2022[54]. - The revenue from disposable puncture cannulas was RMB 394.4 million, up 8.1% from RMB 364.9 million in 2022, accounting for approximately 42.6% of total revenue[54]. - The revenue from polymer ligation clips reached RMB 227.3 million, an increase of 18.1% from RMB 192.5 million in 2022, representing about 24.5% of total revenue[54]. - The revenue from disposable electrocautery forceps was RMB 122.6 million, accounting for approximately 13.2% of total revenue, with a significant growth of 30.1%[54]. - The sales of ultrasonic cutting hemostatic knives amounted to RMB 38.0 million, a remarkable increase of 109.3% from RMB 18.2 million in 2022[55]. Assets and Liabilities - Total assets less current liabilities increased to RMB 4,072.99 million in 2023 from RMB 3,831.24 million in 2022[9]. - The company’s total liabilities decreased to RMB 2,953 thousand in 2023 from RMB 84,592 thousand in 2022, indicating a significant reduction[13]. - Trade receivables, net of impairment, totaled RMB 225,534,000 in 2023, up from RMB 163,145,000 in 2022, which is an increase of approximately 38.2%[37]. - Trade payables increased to RMB 34.1 million in 2023, compared to RMB 20.8 million in 2022, reflecting a significant rise in liabilities[43]. Corporate Governance and Strategy - The company operates as a single reporting segment, focusing on overall performance for resource allocation and evaluation[22]. - The company has no outstanding bank loans or other borrowings as of December 31, 2023[77]. - There were no significant acquisitions or disposals during the reporting period[78]. - The company has granted a total of 26,810,000 restricted share units under its plan as of December 31, 2023[81]. - The company has adjusted the allocation for establishing new R&D centers, focusing instead on developing and expanding its product pipeline, with a slight increase in funding for R&D activities[86]. Future Outlook - The company expects the healthcare industry in China to gradually return to normal operating levels by the second half of 2024, facilitating the launch of new products and enhancing face-to-face academic exchanges[50]. - The company plans to enhance market share for existing core products and expand sales of new products, including ultrasonic cutting hemostatic knives and 4K endoscopic imaging systems, with expectations of higher new product growth rates in 2024[50].

Revenue and Profit Growth - Revenue for the first half of 2023 reached RMB 403.6 million, a 21.4% increase compared to the same period in 2022, driven by the recovery of elective surgeries post-COVID-19 restrictions and growth in domestic and export sales[4] - Net profit attributable to the parent company's owners increased by 62.0% to RMB 255.5 million in 2023, up from RMB 157.7 million in 2022, primarily due to sales growth and other income, partially offset by increased R&D expenses from the acquisition of Hangzhou Weijing Medical Robot Co., Ltd[5] - Total revenue for the first half of 2023 reached RMB 403.6 million, a 21.4% increase compared to the same period in 2022, driven by growth in core disposable products and the 4K ultra-high-definition endoscopy camera system[8] - Net profit attributable to the parent company's shareholders increased by 62.0% to RMB 255.5 million in the first half of 2023, up from RMB 157.7 million in the same period in 2022[8] - Adjusted net profit attributable to the parent company's shareholders (excluding certain non-recurring items) increased by 10.2% to RMB 237.2 million in the first half of 2023[8] - Revenue increased to RMB 403,589 thousand in the first half of 2023, up 21.4% from RMB 332,321 thousand in the same period of 2022[60] - Gross profit rose to RMB 321,755 thousand, a 21.1% increase compared to RMB 265,712 thousand in the first half of 2022[60] - Net profit attributable to owners of the parent company grew to RMB 255,461 thousand, up 62% from RMB 157,713 thousand in the same period last year[60] - Revenue from customer contracts increased to RMB 403.589 million in 2023, up from RMB 332.321 million in 2022, representing a 21.4% growth[77] - The company's profit attributable to ordinary shareholders for the first half of 2023 was RMB 255,461 thousand, a significant increase from RMB 157,713 thousand in the same period of 2022[86] Domestic and Overseas Sales Performance - Domestic sales growth in 2023 was driven by increased sales of disposable products in three core categories and a significant rise in sales of the 4K ultra-high-definition endoscope camera system[6] - Overseas sales grew by 28.1% to RMB 39.1 million in the first half of 2023, benefiting from increased market penetration in Europe and South America, as well as the appreciation of the US dollar[7] - The company added 9 new overseas product registrations during the reporting period, primarily in Europe and Southeast Asia, and plans to increase resource allocation in overseas markets to maintain rapid growth momentum[7] - Overseas market revenue grew by 28.1% to RMB 39.1 million, accounting for 9.7% of total revenue, with expansion to 47 countries/regions and increased product registrations[16] - Domestic revenue increased by 20.8% to RMB 364.5 million, with hospital and other customer sales surging 85.0% to RMB 31.3 million[17] - Revenue from Mainland China accounted for RMB 364.464 million, while revenue from other countries/regions was RMB 39.125 million in 2023[78] Product Development and Innovation - The company obtained 7 new product registrations in China during the reporting period, bringing the total number of NMPA-registered products to 85, including 12 Class III, 39 Class II, and 34 Class I medical devices[9] - The three-arm surgical robot completed urology patient clinical enrollment, while the four-arm surgical robot is expected to start clinical trials in Q4 2023 and obtain registration approval in 2024[9] - The company plans to finalize the product design of the single-port surgical robot in the second half of 2023[9] - Recurring product revenue increased by 56.6% to RMB 61.6 million, driven by sales growth of 4K endoscope camera systems and reusable forceps[15] - Revenue from the 4K endoscopy camera system surged by 412.6% to RMB 17.9 million in the first half of 2023[12] - Disposable product revenue increased by 16.7% to RMB 342.0 million in the first half of 2023, accounting for 84.7% of total revenue[14] Sales and Distribution Strategies - The company secured new bids for core products in centralized procurement programs, including non-absorbable ligation clips in Anhui Province and ultrasonic cutting hemostasis devices in Yunnan and Shandong Provinces, with no expected changes to the dealer model or profit levels[6] - The company expanded its sales network by adding regional sales managers and strengthening local distributor management, leading to sales growth in markets like Guangdong Province[10] - The company established 13 single-port surgery training centers nationwide, training over 200 doctors from more than 100 hospitals in the first half of 2023[10] Financial Performance and Expenses - Sales cost rose by 22.9% to RMB 81.8 million, primarily due to increased raw material and production costs in line with sales growth[18] - Gross profit increased by 21.1% to RMB 321.8 million, with gross margin remaining stable at 79.7%[20] - R&D expenses surged by 128.6% to RMB 60.1 million, driven by increased investment in innovative products and upgrades[25] - Sales and distribution expenses increased by 36.2% to RMB 32.6 million, mainly due to marketing promotion fees and resumed travel-related activities[23] - Administrative expenses rose by 37.6% to RMB 45.4 million, primarily due to increased personnel and related costs[24] - Other income and gains increased to RMB 93.8 million, driven by higher bank deposit interest income and foreign exchange gains[22] - Income tax expense increased by 1.7% to RMB 42.0 million, reflecting higher taxable profits from mainland China operations[27] - Adjusted net profit for the period was RMB 237.2 million, compared to RMB 215.3 million in the same period last year[29] - Research and development costs more than doubled to RMB 60,076 thousand, compared to RMB 26,280 thousand in the first half of 2022[60] - Cost of goods sold increased to RMB 81.834 million in 2023, up from RMB 66.609 million in 2022, a 22.9% rise[81] - Net impairment losses on trade and other receivables increased to RMB 1.647 million in 2023 from RMB 639,000 in 2022[81] - Share-based payment expenses slightly decreased to RMB 7.273 million in 2023 from RMB 7.526 million in 2022[81] - The company's tax provisions in mainland China for the first half of 2023 amounted to RMB 36,301 thousand, a slight decrease from RMB 37,072 thousand in the same period of 2022[84] - Total tax expenses for the first half of 2023 were RMB 41,985 thousand, compared to RMB 41,297 thousand in the same period of 2022[84] Cash Flow and Financial Position - Cash and cash equivalents increased to RMB 3,002.4 million as of June 30, 2023, from RMB 2,818.4 million as of December 31, 2022[31] - Net current assets decreased slightly to RMB 2,954.1 million as of June 30, 2023, from RMB 2,970.1 million as of December 31, 2022[32] - The company recorded a foreign exchange gain of RMB 23.2 million for the six months ended June 30, 2023, compared to a loss of RMB 24.2 million in the same period last year[33] - Capital expenditures for the six months ended June 30, 2023, were RMB 34.6 million, down from RMB 69.9 million in the same period last year[34] - The company's capital-to-debt ratio increased to 8.8% as of June 30, 2023, from 3.8% as of December 31, 2022[35] - Cash and cash equivalents reached RMB 3,002,425 thousand as of June 30, 2023, up 6.5% from RMB 2,818,360 thousand at the end of 2022[62] - Total assets increased to RMB 3,839,822 thousand, a 0.2% rise from RMB 3,831,242 thousand at the end of 2022[62] - Inventory increased to RMB 112,748 thousand, up 7% from RMB 105,399 thousand at the end of 2022[62] - Trade receivables grew to RMB 169,149 thousand, a 3.7% increase from RMB 163,145 thousand at the end of 2022[62] - Total equity increased slightly to RMB 3,722,265 thousand, compared to RMB 3,718,808 thousand at the end of 2022[63] - Cash flow from operating activities for the six months ended June 30, 2023, was RMB 271,282 thousand, an increase from RMB 194,794 thousand in the same period in 2022[68] - Net cash flow from operating activities for the six months ended June 30, 2023, was RMB 169,550 thousand, compared to RMB 128,751 thousand in the same period in 2022[68] - Net cash used in investing activities for the six months ended June 30, 2023, was RMB 1,249,899 thousand, primarily due to the purchase of financial assets measured at fair value through profit or loss[69] - Cash and cash equivalents decreased by RMB 1,099,951 thousand during the six months ended June 30, 2023, compared to a decrease of RMB 242,341 thousand in the same period in 2022[69] - The company repurchased shares worth RMB 13,707 thousand during the six months ended June 30, 2023[69] - The company acquired a subsidiary, resulting in an increase of RMB 363,372 thousand in non-controlling interests[66] - The company declared dividends of RMB 178,003 thousand during the six months ended June 30, 2022[66] - The company's total equity as of June 30, 2022, was RMB 3,260,401 thousand, with non-controlling interests of RMB 4,216 thousand[66] - Bank interest income rose to RMB 42.636 million in 2023, compared to RMB 26.530 million in 2022, a 60.8% increase[80] - Government grants decreased to RMB 25.200 million in 2023 from RMB 34.564 million in 2022, a 27.1% decline[80] - Net exchange gains amounted to RMB 23.227 million in 2023, compared to no gains in 2022[80] - The company's property, plant, and equipment had a net book value of RMB 192,490 thousand as of June 30, 2023, up from RMB 169,020 thousand at the end of 2022[89] - Trade receivables (net of impairment) stood at RMB 169,149 thousand as of June 30, 2023, compared to RMB 163,145 thousand at the end of 2022[90] - Cash and cash equivalents totaled RMB 3,002,425 thousand as of June 30, 2023, an increase from RMB 2,818,360 thousand at the end of 2022[92] - The company's cash and bank balances were RMB 523,218 thousand as of June 30, 2023, while time deposits amounted to RMB 2,479,207 thousand[92] - The majority of cash and cash equivalents were denominated in RMB (RMB 2,305,941 thousand), followed by USD (RMB 684,168 thousand) and HKD (RMB 12,185 thousand)[92] - Trade payables increased to RMB 24,922 thousand within 3 months as of June 30, 2023, up from RMB 19,151 thousand as of December 31, 2022[94] - Capital commitments for buildings increased to RMB 76,956 thousand as of June 30, 2023, compared to RMB 68,489 thousand as of December 31, 2022[95] - The company entered into a lease agreement with Kangyin Investment for office space, with annual rent increasing from RMB 1,200,000 in the first year to RMB 1,452,000 in the third year[96] - Total compensation paid to key management personnel decreased to RMB 9,209 thousand for the six months ended June 30, 2023, from RMB 9,441 thousand for the same period in 2022[97] - Financial assets measured at fair value through profit or loss increased to RMB 149,867 thousand as of June 30, 2023, from RMB 147,593 thousand as of December 31, 2022[99] - Cash and cash equivalents increased to RMB 3,002,425 thousand as of June 30, 2023, from RMB 2,818,360 thousand as of December 31, 2022[99] - Financial liabilities measured at amortized cost increased to RMB 334,466 thousand as of June 30, 2023, from RMB 114,874 thousand as of December 31, 2022[101] - The fair value of financial assets measured using significant unobservable inputs (Level 3) increased to RMB 136,206 thousand as of June 30, 2023, from RMB 133,937 thousand as of December 31, 2022[105] - The company holds non-listed investments in wealth management products issued by banks in mainland China, with fair value estimated using discounted cash flow models[104] - No transfers between Level 1 and Level 2 fair value measurements, or into or out of Level 3, occurred during the period[107] Share Repurchase and Equity Management - The company repurchased a total of 1,780,500 shares on the Hong Kong Stock Exchange at a total cost of approximately HKD 15.7 million (excluding brokerage fees and taxes), with prices ranging from HKD 8.18 to HKD 9.25[48] - A total of 2,521,000 shares were canceled during the six months ended June 30, 2023, which were repurchased by the company in December 2022 and during the reporting period[48] - Under the Pre-IPO Share Option Scheme, 4,120,000 share options were granted, representing approximately 0.34% of the issued shares[50] - All 4,120,000 share options granted under the Pre-IPO Share Option Scheme were canceled on September 15, 2023[50] - Frances Fang Chovanec, Executive Director and CFO, holds 4,120,000 unexercised share options as of June 30, 2023, representing 0.34% of the issued shares[51] - The total number of restricted share units granted under the Restricted Share Unit Plan is 26,810,000 as of June 30, 2023[52] - The net proceeds from the global offering amounted to approximately HKD 2,952.5 million (RMB 2,697.1 million)[53] - 9.8% of the net proceeds (RMB 249.9 million) are allocated for expanding existing product capacity and automating production lines, with RMB 6.9 million utilized as of June 30, 2023[54] - 10.2% of the net proceeds (RMB 260.1 million) are allocated for enhancing pipeline product capacity, with RMB 20.0 million utilized as of June 30, 2023[54] - 17.0% of the net proceeds (RMB 433.5 million) are allocated for establishing an R&D center, with RMB 11.1 million utilized as of June 30, 2023[54] - 8.0% of the net proceeds (RMB 204.0 million) are allocated for developing and expanding the product pipeline, with RMB 20.1 million utilized as of June 30, 2023[54] - 15.0% of the net proceeds (RMB 382.5 million) are allocated for domestic sales and marketing activities, with RMB 14.6 million utilized as of June 30, 2023[54] - 5.0% of the net proceeds (RMB 127.5 million) are allocated for increasing overseas sales, with RMB 0.5 million utilized as of June 30, 2023[54] - 25.0% of the net proceeds (RMB 637.5 million) are allocated for potential strategic investments and acquisitions, with RMB 207.5 million utilized as of June 30, 2023[54] - 10.0% of the net proceeds (RMB 255.0 million) are allocated for working capital and general corporate purposes, with RMB 34.0 million utilized as of June 30, 2023[54] Employee and Management Compensation - The company had 982 employees as of June 30, 2023, up from 846 employees as of June 30, 2022[38] - Total employee compensation expenses, including director remuneration and share-based payment expenses, were RMB 67.9 million for the six months ended June 30, 2023, compared to RMB 62.3 million in the same period last year[38] - Total compensation paid to key management personnel decreased to RMB 9,209 thousand for the six months ended June 30, 2023, from RMB 9,441 thousand for the same period in 2022[97] Corporate Governance and Financial Reporting - The company did not have any significant investments, acquisitions, or disposals during the reporting period[36] - The company plans to use proceeds from its global offering for strategic investments and capital asset acquisitions for expansion[37] - The company's report period is from January 1, 2023, to June 30, 2023[109] - The company was listed on the Main Board of the Hong Kong Stock Exchange on June 29, 2020[108] - The company's shares have a nominal value of $0.00001 per share[109] - The company's IPO was conducted on