智通财经APP获悉，7月3日，国家药监局官网发布《关于优化全生命周期监管支持高端医疗器械创新发 展有关举措的公告》，针对医用机器人、高端医学影像设备、人工智能医疗器械和新型生物材料医疗器 械等高端医疗器械提出十方面支持举措。举措聚焦高端医疗器械的全生命周期监管，覆盖审评审批优 化、标准体系建设、上市后监管强化等全链条。 在"持续健全标准体系"方面，《举措》强调要加快发布医用外骨骼机器人、放射性核素成像设备等相关 标准。需加快推进医用机器人、人工智能医疗器械、高端医学影像设备等领域的基础、通用标准和方法 标准等制修订工作，积极筹建医用机器人、人工智能医疗器械标准化技术组织。 《举措》专门提到，将配合相关部门出台基于脑机接口技术的医疗器械产品支持政策。在此之前，《采 用脑机接口技术的医疗器械非侵入式设备通用技术条件》医疗器械国家标准立项申请项目已于6 月23 日 公开征求意见。 根据前瞻研究院预测，随着人民对健康关注水平不断提升，高端医疗器械市场需求保持快速扩张，到 2030年，全球高端医疗器械市场规模预计突破1.8万亿美元，中国高端医疗器械市场规模预计达到2.8万 亿元人民币。 在重点赛道方面，以下几大领域或值 ...

康基医疗 20250703 摘要 全球微创外科耗材市场规模庞大，2024 年约为 320 亿美元，但年复合 增速仅为 5%，主要受欧美老龄化及欠发达地区开胸手术影响。中国市 场增速显著，预计未来五年复合增速达 12%，2024 年市场规模预计为 260 亿元，2028 年将达 407 亿元。 微创外科手术量在中国持续增长，预计从 2023 年的 1,400 万台增至 2028 年的 2,400 万台，耗材单价略有提升。集采政策导致穿刺器等产 品价格大幅下降，外资企业因成本压力退出，为康基等国产企业提供了 巨大的替代空间。 康基医疗的市场份额显著提升，从 2019 年的 2%-3%增长至 2023 年 的 14%左右，受益于国产替代加速。国际巨头如美敦力因成本问题退出 部分产线，其原副总裁也转投康基，进一步增强了康基的竞争力。 康基医疗在一次性穿刺器、高分子结扎夹、电凝钳等领域占据领先地位， 并积极拓展超声刀、吻合器和缝线等产品线。同时，康基也在腹腔机器 人领域进行布局，其子公司正在开发相关产品。 Q&A 康基作为中国微创耗材的龙头企业，在手术机器人领域的发展前景如何？ 康基发布了其第一款腹腔镜手术机器人，预计 ...

Industry Overview - The National Medical Products Administration (NMPA) has approved measures to optimize the lifecycle regulation supporting the innovation of high-end medical devices, which will be released soon [1] - The measures include ten specific actions such as optimizing special approval procedures, improving classification and naming principles, and enhancing post-market supervision [1] - The medical device industry in China is growing, with the total number of manufacturing enterprises reaching 32,806 by June 2024, doubling since 2014 [2] - Revenue from manufacturing enterprises increased from 553.2 billion in 2014 to 1,310 billion in 2023, with a compound annual growth rate of approximately 10% [2] Technological Advancements - The medical device industry is experiencing a dual trend of technology-driven innovation and domestic substitution, with domestic companies breaking through technical barriers in high-end equipment [3] - AI technology is being integrated into various aspects of the medical device sector, enhancing design innovation, quality control, supply chain efficiency, and clinical applications [2] Company Insights - MicroPort Scientific Corporation (02252) is expected to see a significant increase in sales contribution from its robotic division, projected to rise from approximately 3% in 2024 to about 40% by 2033 [4] - One Medical (02522) is advancing in the field of medical imaging, having launched the world's first full-modal, full-process medical imaging AI model, marking a transition to the 2.0 era of medical imaging AI [4] - Yongsheng Medical (01612) focuses on rehabilitation robotics, with its gait correction robot winning a silver award at a competition, showcasing its innovation in the field [5] - Kangji Medical (09997) is preparing to launch its surgical robot business, with its subsidiary having completed clinical trials for a four-arm surgical robot system and submitted a registration application [5]

Group 1 - The Hang Seng Index will increase its constituent stocks from 83 to 85, with the inclusion of Midea Group and ZTO Express - W [2] - The Hang Seng Composite Index will also see an increase in constituent stocks from 502 to 505, adding three new stocks, all of which were listed this year, including two new tea beverage companies [2][3] - The Hang Seng Technology Index will maintain its number of constituent stocks at 30, adding BYD Company while removing Tencent Literature [2] Group 2 - The Hang Seng Biotechnology Index will keep its constituent stocks at 50, adding two stocks: Hongyuan Pharmaceutical - B and Kangji Medical, while removing two stocks: CStone Pharmaceuticals - B and Rongchang Biopharmaceutical [2] - The Hang Seng China Enterprises Index will remain unchanged with 50 constituent stocks [3] - As of the end of March 2025, the total assets under management of products tracking the Hang Seng Index series amounted to approximately $88.2 billion [3] Group 3 - The overall performance of the Hong Kong stock market has improved significantly, with major indices rebounding over 20% from their lows in April [4] - The Hang Seng Index saw a maximum increase of 23.11%, the Hang Seng Technology Index increased by 28.04%, and the Hang Seng China Enterprises Index rose by 21.32% from their April lows [4] Group 4 - Several individual stocks within the Hang Seng Index have experienced remarkable rebounds of over 40% since April, including Lenovo Group, Li Auto - W, Geely Automobile, WuXi Biologics, and BYD Electronic [5]

Group 1 - The Hang Seng Biotechnology Index will include companies Same Origin Health (02410.HK) and Kangji Medical (09997.HK) [1] - The index will exclude companies CStone Pharmaceuticals-B (09966.HK) and Rongchang Biopharmaceuticals (09995.HK) [1]

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].

Group 1 - Goldman Sachs has rated Kangji Medical (09997) as a buy, with a target price of HKD 9.3 based on a projected P/E ratio of 17 times for 2027 and a 12% CAGR in EPS over three years [1] - Kangji Medical holds approximately 41.99% of Weijing Medical, which has received approval for its four-arm surgical robot, aligning with Goldman Sachs' previous expectations [2] - The company aims to achieve breakeven by 2027, with limited revenue contribution from surgical robots expected in FY2025, while focusing on the long-term contribution of consumables [2] Group 2 - A commercial team of over 150 members has been established, with a competitive pricing strategy set around RMB 10 million to enhance product accessibility [2] - The company plans to select 10-20 top hospitals by 2025 for training to address the current shortage of doctors using robotic systems [2] - Weijing Medical is developing a CE-certified version of its robot for international markets, with a large-scale production base in Tonglu, Hangzhou, expected to be operational by the end of 2025 [3] Group 3 - Future development will focus on integrating 5G remote capabilities and artificial intelligence into multi-arm robots, with a single-port surgical robot expected to enter clinical trials by the end of 2025 [4] - The industry is projected to have a total of approximately 100 units available for bidding in 2024, with 370 out of 559 units allocated to hospitals under the "14th Five-Year Plan" [4] - Management believes there are opportunities for domestic suppliers to replace imports for certain materials, as about 10% of raw materials for the robot business currently come from overseas [4]

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