Summary of Kangji Medical Conference Call Industry Overview - The global minimally invasive surgical consumables market is projected to reach approximately $32 billion by 2024, with a compound annual growth rate (CAGR) of only 5% due to aging populations in Europe and the US, as well as open-chest surgeries in underdeveloped regions [2][4] - The Chinese market is expected to grow significantly, with a projected CAGR of 12%, reaching approximately 26 billion yuan in 2024 and 40.7 billion yuan by 2028 [2][5] - The number of minimally invasive surgeries in China is anticipated to increase from 14 million in 2023 to 24 million by 2028, with a slight increase in the average price of consumables [2][6] Company Insights - Kangji Medical's market share has increased significantly from 2-3% in 2019 to around 14% in 2023, benefiting from accelerated domestic substitution as international giants like Medtronic exit certain product lines due to cost pressures [2][8] - The company leads in disposable puncture devices, polymer ligation clips, and electrocautery forceps, while actively expanding into ultrasonic knives, staplers, and sutures [2][3] - Kangji Medical is also developing products in the laparoscopic robotic field, with its first laparoscopic surgical robot expected to drive growth in surgical robot consumables [3] Financial Performance - Kangji Medical's revenue for 2024 is projected to be around 1 billion yuan, with profits nearing 600 million yuan [4][16] - The company maintains a strong cash flow, with approximately 1.4 billion yuan in cash by the end of 2024 and a commitment to a high dividend payout ratio of 60-80% [4][22] - The overall compound growth rate for Kangji Medical is expected to be between 16-17% over the next three years, with new products like ultrasonic knives and staplers potentially achieving growth rates of 50-60% [4][24] Market Dynamics - The competitive landscape in the Chinese minimally invasive surgical market has shifted, with major international players like Johnson & Johnson and Medtronic losing market share due to high costs associated with bidding [7][8] - The implementation of centralized procurement policies has led to significant price reductions for products like disposable puncture devices, creating substantial opportunities for domestic companies like Kangji [7][8] - The market for surgical robots in China is currently dominated by the Da Vinci system, but domestic brands are gradually gaining traction [9] Risks and Challenges - Potential risks include the impact of centralized procurement and DRG (Diagnosis-Related Group) policies on hospital surgery volumes and physician engagement [26] - Intense competition in the consumables market necessitates effective promotion by distributors, and uncertainties exist regarding overseas market expansion, including tariff risks in Europe [26] - New products, particularly energy sources and devices, may face regulatory and market entry challenges [26] Conclusion - Kangji Medical is positioned well within the rapidly growing Chinese minimally invasive surgical market, with a strong focus on innovation and market expansion. However, the company must navigate various risks associated with market competition and regulatory environments to sustain its growth trajectory.

康基医疗(09997)发布公告，有关出售目标公司Hangzhou Kangji Qipu Medical Instrument Co., Ltd.全部股 权的相关事宜。于股权转让协议订立后，卖方已于规定期限内完成必要登记手续，且买方已向卖方支付 人民币5100万元，包括向卖方支付人民币5000万元作为部分出售事项代价;及向卖方指定银行账户支付 人民币100万元作为促成协议完成的部分行政程序。惟买方未能履行股权转让协议项下协定的剩余付款 义务。经买卖双方友好协商后，各方决定终止出售事项。 于2025年5月7日，目标公司与中国政府机构萧山经济技术开发区管理委员会(政府机构)(为本公司独立第 三方)订立土地收回协议(土地收回协议)。据此，政府机构同意就收回目标公司持有的特定地块向目标公 司支付约人民币2930万元(土地收回补偿)。土地收回补偿乃经目标公司与政府机构公平磋商并参考(包括 但不限于) 适用法律法规政策、已付的原始购置成本及地块现状等因素后厘定。根据土地收回协议，目 标公司须于2025年5月31日前将该地块转让予政府机构。 本集团预计于和解协议及土地收回协议完成后将实现收益约人民币 3930万元，该收益乃 ...

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]

据悉，唯精腹腔镜手术机器人系统SR01-200获批前已在浙江大学医学院附属邵逸夫医院、浙江大学医 学院附属第二医院完成多科室临床试验，顺利开展泌尿外科、普外科、妇科典型术式，在手术中能提供 高清、逼真的视野，同时具有很高的器械灵活度，可以满足高精度、高可靠性的临床要求。凭借充分的 临床试验安全性和有效性验证、覆盖多科室的适应症布局，以及与微创外科行业龙头康基医疗的深度协 同优势，该产品被视为打破进口垄断、开启国产替代新纪元的重要力量，预期将助力中国成为全球手术 机器人增长极之一。 从行业前景来看，手术机器人被誉为"医疗器械皇冠上的明珠"，而腔镜机器人则是其中商业化价值极高 的细分赛道。在国产手术机器人快速迭代发展的浪潮中，尽管目前中国手术机器人在医疗机构中的渗透 率仍处于早期爬坡阶段，但微创机器人手术需求持续增长，市场潜力巨大。根据Markets and Markets的 分析报告，2024年全球手术机器人市场规模约为111亿美元，预计到2029年全球手术机器人市场规模将 达到237亿美元，年复合增长率为16.5%。而仅腔镜机器人细分领域便占据了手术机器人市场60%以上的 份额。在"临床+产业+政策"三维势能 ...

Group 1: Regulatory Developments - The National Medical Products Administration (NMPA) is seeking public opinion on measures to optimize lifecycle regulation supporting high-end medical device innovation [1] - The draft emphasizes strengthening standards to lead innovation and improving the high-end medical device standard system [1] - Accelerated publication of standards for medical exoskeleton robots and radioactive nuclide imaging devices is planned [1] Group 2: Industry Trends - AI in healthcare is highlighted as a significant innovation direction, enhancing medical device functionality and clinical decision-making [1] - Companies are expected to leverage AI to improve product competitiveness and customer loyalty, solidifying their market position [1] Group 3: Company Performance - MicroPort Robotics (02252) is experiencing strong order trends, with sales contribution from robotics expected to rise from approximately 3% in 2024 to about 40% by 2033 [2] - Yimaitong (02522) is advancing in medical imaging services and has launched an AI company that released a global first full-modal medical imaging model [2] - Yongsheng Medical (01612) reported a revenue of approximately HKD 801 million for 2024, a year-on-year increase of 11.6%, driven by increased orders in imaging disposable products [3] - Kangji Medical (09997) is set to launch its surgical robot business, with significant investments in its subsidiary Weijing Medical, which has completed clinical trials for its four-arm surgical robot system [4]

中信证券 创新药和集采政策趋势 20250330 摘要 Q&A 当前医药板块在政策方面有哪些重要变化？ 近期，医药板块在政策方面出现了显著变化，尤其是集采政策的优化和商保的 快速落地。首先，关于集采政策，上周业内流传的相关内容显示，第十批集采 相关舆情之后，医保监管部门进行了相应调整。在两会期间，总理报告中提到 要"优化集采"和"完善药品价格形成机制"，这表明未来将更多体现市场化 竞争机制。这一变化缓解了过去对行业估值压制的担忧。 具体而言，此次调整 可能使得更多差异化和品牌类型产品能够进入市场，从而重新评估市场模型。 • 集采政策优化及医保支付标准调整：两会期间强调"优化集采"和"完善 药品价格形成机制"，预示着市场化竞争机制的回归，缓解了行业估值压 制，利好差异化和品牌类型产品，降低非医保支付品类的价格干预风险。 • 多元化支付体系加速构建：商业健康险目录的推出，特别是城市定制型商 业医疗保险如上海"全药保"，覆盖更多创新药和进口原料药，为临床刚 需创新药提供新的支付契机，预计商业保险市场规模将超万亿。 • 创新药企迎来发展机遇：恒瑞医药、百济神州、信达生物等企业预计实现 首次或持续盈利，并可能推出重磅产 ...

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.

报名：首届全球眼科大会 | 议程更新 报名：首届全球心血管大会 | 奖项申报 报名：首届全球骨科大会 | 奖项评选 MedRobot 2025年3月24日， 康基医疗 （09997.HK）发布了2024年年报。康基医疗是国内领先的微创外科手 术器械及配套耗材（MISIA）平台，拥有 "设备+器械+耗材+手术机器人" 四大产品管线，能够提供 微创手术一体化解决方案。 # 财报数据 2024年，公司实现营收 10.09亿 元（同比+8.9%），归母净利润 5.81亿 元（同比 +15.4% ）。 经计算， 公司24H2收入5.50亿元（同比+5.2%），24H2归母净利润2.96亿元（同比+18.9%）。董事会建议派付 2024年末期股息每股股份人民币24分。 公司经营亮点： # 关于 康基医疗 报告期内， 公司于唯精医疗的持股由35%增加至 约41.99% 。2024年3月， 唯精医疗四臂手术机器人 系统已完成多科室人体临床试验 ，并已在报告期内向国家药品监督管理局(NMPA)提交注册申请。预计 将于2025年第二季度获得监管部门批准。 报告期内，公司国内收入实现增长，主要得益于一次性套管穿刺器、一次性电凝钳、 ...

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]