Summary of Conference Call on Northeast Medical Health Industry Industry Overview - The conference call discusses the Northeast Medical Health industry, specifically focusing on the recent developments in surgical robotics and innovative medical technologies. Key Points and Arguments 1. **National Pricing Guidelines**: On January 20, the National Healthcare Security Administration (NHSA) released the "Guidelines for the Establishment of Pricing Projects for Surgical and Treatment Auxiliary Medical Services (Trial)" which establishes a unified pricing framework for surgical robots, energy equipment consumables, and remote surgery technologies across the country [1][3]. 2. **Provincial Implementation Timeline**: Historical data suggests that it typically takes between six months to a year for provinces to implement specific projects and pricing after the NHSA's announcement [2]. 3. **Benefits of Pricing Directory**: The establishment of a clear pricing directory is expected to facilitate the entry of innovative devices into hospitals and increase the sales volume of consumables [4]. 4. **Impact on Clinical Promotion**: Previously, the need for medical institutions to apply for self-pricing or provincial pricing led to reduced enthusiasm for clinical promotion. The new pricing directory aims to streamline the final pricing model across provinces, enhancing the accessibility of advanced medical technologies and promoting a shift from traditional to precision medicine [5]. 5. **Tiered Pricing System for Surgical Robots**: A tiered pricing system based on the clinical value and participation level of surgical robots has been introduced. Prices will be set in three tiers: navigation, participation in execution, and precise execution. The guidelines also include specific consumables in the pricing structure [5]. 6. **Independent Pricing for Remote Surgery**: Remote surgery has been given independent pricing status, which is expected to benefit leading hospitals and increase surgical volumes [6]. 7. **Clarification on Consumable Charges**: The guidelines clarify the charging logic for disposable and reusable consumables, stating that disposable consumables will be sold at zero markup, while reusable consumables will incur an auxiliary operation fee [7]. Key Beneficiaries 1. **MicroPort Robotics**: A leading domestic surgical robot company with over 160 cumulative orders for laparoscopic robots expected by December 2025. The company is positioned to capitalize on the commercialization of surgical robots and expand market share through innovative procedures [8]. 2. **JinFeng Medical**: Among the top two domestic surgical robot manufacturers, it is rapidly increasing the volume of multi-port and single-port laparoscopic robots, leading in domestic procurement bids [8]. 3. **Tianzhihang**: A leader in orthopedic surgical robots, the company has developed a comprehensive business model that includes equipment, consumables, and technical services [8]. 4. **Sanyou Medical**: Focused on developing three-arm spinal surgical robots and ultrasonic bone knives, benefiting from the new pricing regulations for energy equipment consumables [8]. 5. **Aikang Medical**: Set to launch a second-generation knee joint surgical robot in collaboration with Peking University Third Hospital, aiming to provide a complete digital orthopedic solution [8]. 6. **Chunli Medical**: Innovating with handheld robotic technology, the company plans to establish multiple surgical training centers overseas to accelerate international expansion [9].

Group 1 - The core viewpoint of the article highlights the recent trading activity of southbound funds in Spring Medical (01858.HK), indicating a mixed trend with both increases and decreases in holdings [1] - Southbound funds increased their holdings by 368,800 shares on January 19, while over the past five trading days, there were three days of net reductions totaling 505,000 shares [1] - Over the last 20 trading days, there were ten days of net reductions, amounting to a total of 2,725,500 shares [1] Group 2 - As of now, southbound funds hold 41,741,300 shares of Spring Medical, which represents 43.86% of the company's total issued ordinary shares [1] - Spring Medical is primarily engaged in the research, production, and sales of implantable orthopedic medical devices, with key products including joint prosthetics, spinal implants, trauma products, sports medicine products, PRP products, oral products, and surgical robots [1] - The company's joint prosthetic products cover major human joints such as hip, knee, shoulder, and elbow, and its products are sold in both domestic and international markets [1]

Investment Rating - The report maintains an "Outperform" rating for several companies, including Jiangsu Heng Rui Medicine, Hansoh Pharmaceutical Group, 3SBio, Sichuan Kelun Pharmaceutical, and Jiangsu Nhwa Pharmaceutical [6][7]. Core Insights - The annual J.P. Morgan Healthcare Conference concluded successfully, with positive information from global pharmaceutical companies, including new pipeline disclosures and major deals. The report highlights the high prosperity in the innovative drug sector and recommends continuous investment in innovative drugs and the industry chain [25][26]. - The A-Shares pharmaceutical sector underperformed the market in the third week of January 2026, with the Shanghai Composite Index falling by 0.4% and the SW Pharmaceutical and Biological sector declining by 0.7% [8][27]. - The Hong Kong stock pharmaceutical sector performed in line with the market, while the U.S. pharmaceutical sector underperformed. The Hang Seng Healthcare index increased by 2.4%, and the S&P 500 Healthcare Select Sector decreased by 1.1% [28]. Summary by Sections Section 1: Continuous Recommendation of Innovative Drugs and Industry Chain - The report emphasizes the high prosperity of innovative drugs and maintains overweight ratings for key pharmaceutical companies. It also recommends Biopharma/Biotech companies with promising pipelines and volume increases, as well as CXO and upstream companies benefiting from innovation [6][25]. Section 2: A-Shares Pharmaceutical Sector Performance - In the third week of January 2026, the A-Shares pharmaceutical sector's performance was ranked 17th among Shenwan primary industries, with a decline of 0.7%. The medical service sub-sector showed a positive performance of +3.3% [8][12][27]. Section 3: Hong Kong and U.S. Pharmaceutical Sector Performance - The Hong Kong pharmaceutical sector performed similarly to the market, while the U.S. sector underperformed. Notable gainers in the U.S. included MODERNA (+22%) and QUEST DIAGNOSTICS (+9%), while major decliners included BIOGEN (-12%) and BOSTON SCIENTIFIC (-10%) [28].

Investment Rating - The report maintains an "Overweight" rating for the pharmaceutical sector [6][26]. Core Insights - The report emphasizes the continuous recommendation of innovative pharmaceuticals and medical devices, highlighting the high growth potential in the sector. It maintains "Overweight" ratings for companies such as Heng Rui Medicine, Hansoh Pharmaceutical, Sanofi, Kelun Pharmaceutical, and Enhua Pharmaceutical. It also recommends Biopharma/Biotech companies like Kelun Biotech, BeiGene, and others, as well as CXO and upstream pharmaceutical companies [6][3]. Summary by Sections 1. Continuous Recommendation of Innovative Pharmaceuticals and Medical Devices - The report highlights the high growth potential of innovative drugs and recommends several companies for investment, including Heng Rui Medicine, Hansoh Pharmaceutical, Sanofi, Kelun Pharmaceutical, and Enhua Pharmaceutical. It also suggests Biopharma/Biotech companies like Kelun Biotech, BeiGene, and others, as well as CXO and upstream pharmaceutical companies [6][7]. 2. A-share Pharmaceutical Sector Performance - In the third week of January 2026, the A-share pharmaceutical sector underperformed the broader market, with the Shanghai Composite Index declining by 0.4% and the SW Pharmaceutical and Biotech index falling by 0.7% [8][11]. 3. Hong Kong and US Market Performance - The Hong Kong pharmaceutical sector performed in line with the market, while the US pharmaceutical sector underperformed. In the same week, the Hang Seng Healthcare index rose by 2.4%, and the S&P 500 healthcare sector fell by 1.1% [19][20].

Group 1 - The core point of the article highlights that southbound funds have reduced their holdings in Spring Medical (01858.HK) by 108,800 shares on January 16, with a total net reduction of 1,034,000 shares over the past five trading days [1] - Over the last 20 trading days, southbound funds have reduced their holdings on 10 occasions, resulting in a cumulative net reduction of 3,080,500 shares [1] - As of now, southbound funds hold 41,372,600 shares of Spring Medical, accounting for 43.47% of the company's total issued ordinary shares [1] Group 2 - Spring Medical is primarily engaged in the research, production, and sales of implantable orthopedic medical devices in China [1] - The company's main products include joint prosthetics and spinal implant products, covering major human joints such as hip, knee, shoulder, and elbow [1] - The spinal implant products consist of a complete range of spinal fixation systems, and the company's products are exported to various countries and regions including Asia, South America, Africa, Oceania, and Europe [1]

Group 1 - The core viewpoint of the news is that Spring Medical has shown significant financial performance and trading activity, with a notable increase in revenue and net profit year-on-year [2][3] - On January 14, Spring Medical's stock rose by 1.18%, with a trading volume of 154 million yuan, and a net financing purchase of 1.73 million yuan, indicating strong investor interest [1] - As of January 14, the total margin balance for Spring Medical was 42.55 million yuan, with a financing balance of 42.22 million yuan, representing 0.55% of the circulating market value, which is at a high level compared to the past year [1] Group 2 - Spring Medical specializes in the research, production, and sales of implantable orthopedic medical devices, with its main products including joint prosthetics and spinal implants [2] - The company reported a revenue of 756 million yuan for the first nine months of 2025, reflecting a year-on-year growth of 48.75%, and a net profit of 192 million yuan, which is a 213.21% increase compared to the previous year [2] - The company has distributed a total of 440 million yuan in dividends since its A-share listing, with 390 million yuan distributed over the past three years [3]

Group 1 - The core viewpoint of the news is that Spring Medical has seen a stock price increase of 5.44%, reaching 28.11 yuan per share, with a total market capitalization of 10.782 billion yuan [1] - Spring Medical, established on February 12, 1998, specializes in the research, production, and sales of implantable orthopedic medical devices, including joint prosthetics and spinal implants [1] - The company's main products include hip, knee, shoulder, and elbow joint prosthetics, as well as a full range of spinal fixation systems, with 99.89% of revenue coming from medical device products [1] Group 2 - Among the top circulating shareholders of Spring Medical, a fund under China Europe Fund, specifically the China Europe Prosperity Selected Mixed A Fund (020876), has entered the top ten shareholders, holding 2.8326 million shares, which is 0.74% of the circulating shares [2] - The China Europe Prosperity Selected Mixed A Fund has achieved a year-to-date return of 8.28% and a one-year return of 60.79%, ranking 1417 out of 8840 and 1171 out of 8094 respectively [2] - The fund manager, Zhang Xueming, has been in position for 1 year and 268 days, with the fund's total asset size at 6.741 billion yuan and a best return of 79% during his tenure [3]

Core Viewpoint - Spring Medical (688236) shows strong financial performance with significant year-on-year growth in revenue and net profit, indicating a positive outlook for the company in the orthopedic medical device sector [2]. Financial Performance - For the first three quarters of 2025, Spring Medical reported a main revenue of 756 million yuan, an increase of 48.75% year-on-year [2]. - The net profit attributable to shareholders reached 192 million yuan, up 213.21% year-on-year [2]. - The non-recurring net profit was 181 million yuan, reflecting a substantial increase of 311.07% year-on-year [2]. - In Q3 2025 alone, the company achieved a main revenue of 268 million yuan, a remarkable rise of 109.51% year-on-year [2]. - The net profit for Q3 was 77.06 million yuan, showing a staggering increase of 531.12% year-on-year [2]. - The non-recurring net profit for Q3 was 74.52 million yuan, up 439.4% year-on-year [2]. - The company's debt ratio stands at 15.65%, with investment income of 3.217 million yuan and financial expenses of -9.7234 million yuan [2]. - The gross profit margin is reported at 67.27% [2]. Market Activity - As of January 14, 2026, Spring Medical's stock closed at 26.66 yuan, with an increase of 1.18% [1]. - The turnover rate was 1.95%, with a trading volume of 56,100 hands and a transaction amount of 154 million yuan [1]. - On January 14, the net inflow of main funds was 21.38 million yuan, accounting for 13.92% of the total transaction amount [1]. - Retail investors experienced a net outflow of 18.21 million yuan, representing 11.86% of the total transaction amount [1]. Analyst Ratings - In the last 90 days, 8 institutions have given buy ratings for Spring Medical, with a target average price of 31.7 yuan [3].

Core Viewpoint - The stock of Chunli Medical (688236) has shown a significant increase, closing at 26.35 yuan on January 13, 2026, with a rise of 6.59% and notable trading activity [1] Group 1: Stock Performance - On January 13, 2026, Chunli Medical's stock price increased by 6.59%, with a trading volume of 46,600 hands and a total transaction amount of 119 million yuan [1] - The stock's turnover rate was 1.62%, indicating active trading [1] - The net inflow of main funds was 11.93 million yuan, accounting for 10.05% of the total transaction amount [1] Group 2: Fund Flow Analysis - Over the past five days, the main funds showed a net inflow on January 13, while retail investors experienced a net outflow of 16.46 million yuan, representing 13.86% of the total transaction amount [2] - The net inflow of retail funds was negative on January 12, January 9, and January 8, indicating a trend of retail selling [2] Group 3: Financing and Margin Trading - On January 13, 2026, the financing buy amounted to 13.14 million yuan, with a net financing purchase of 2.33 million yuan [3] - The total margin trading balance was 40.82 million yuan, with a financing balance of 40.50 million yuan [3] Group 4: Company Financials and Industry Comparison - Chunli Medical's total market value is 10.107 billion yuan, with a net profit of 192 million yuan, showing a significant increase of 213.21% year-on-year [5] - The company's gross margin stands at 67.27%, which is higher than the industry average of 50.62% [5] - The company ranks 39th in total market value and 33rd in net profit within the medical device industry [5] Group 5: Analyst Ratings - In the last 90 days, 8 institutions have given a buy rating for Chunli Medical, with an average target price of 31.7 yuan [6]

Core Viewpoint - Spring Medical has shown a significant increase in stock price and trading volume, indicating positive market sentiment towards the company and its growth potential in the orthopedic medical device sector [1]. Company Overview - Spring Medical is a leading domestic manufacturer of orthopedic medical devices, focusing on the research, production, and sales of implantable orthopedic medical devices, including joint prosthetics and spinal implants [2][5]. - The company’s main products include joint prosthetics for the hip, knee, shoulder, and elbow, as well as a full range of spinal internal fixation systems [2][5]. - Spring Medical is recognized as a "specialized, refined, distinctive, and innovative" small giant enterprise, which signifies its strong market position and innovation capabilities [3]. Financial Performance - For the period from January to September 2025, Spring Medical achieved a revenue of 756 million yuan, representing a year-on-year growth of 48.75%, and a net profit attributable to shareholders of 192 million yuan, reflecting a substantial increase of 213.21% [8]. - The company has distributed a total of 440 million yuan in dividends since its A-share listing, with 390 million yuan distributed over the past three years [8]. Market Position and Shareholder Information - As of September 30, 2025, the number of shareholders in Spring Medical increased by 4.12% to 6,164, while the average number of circulating shares per person decreased by 3.95% [8]. - Notable institutional shareholders include Hong Kong Central Clearing Limited and China Europe Economic Growth Fund, indicating growing interest from institutional investors [9]. Technical Analysis - The average trading cost of the stock is 23.50 yuan, with recent buying activity observed, although the strength of this accumulation is not strong [6]. - The stock price is approaching a resistance level of 26.41 yuan, suggesting potential for a price correction if this level is not surpassed [6].