[Section 1 Definitions](index=4&type=section&id=Section%201%20Definitions) [Definitions of Common Terms](index=4&type=section&id=Definitions%20of%20Common%20Terms) This section provides definitions for common terms and professional jargon used in the report, covering company names, investment entities, and medical terms related to blood purification and certification standards, ensuring accuracy and consistency of report content - Defines "Company, Shanwaishan" as Chongqing Shanwaishan Blood Purification Technology Co., Ltd[10](index=10&type=chunk) - Explains core medical technologies and equipment such as blood purification, hemodialysis, peritoneal dialysis, and Continuous Renal Replacement Therapy (CRRT) equipment[10](index=10&type=chunk)[11](index=11&type=chunk) - Includes definitions for diseases like End-Stage Renal Disease (ESRD) and uremia, as well as industry-related concepts such as Class A tertiary hospitals and CE certification[11](index=11&type=chunk) [Section 2 Company Profile and Key Financial Indicators](index=6&type=section&id=Section%202%20Company%20Profile%20and%20Key%20Financial%20Indicators) [I. Company's Basic Information](index=6&type=section&id=I.%20Company's%20Basic%20Information) This section introduces the company's basic information, including its registered name, abbreviation, legal representative, registered and office addresses, website, and email address - The company's Chinese name is Chongqing Shanwaishan Blood Purification Technology Co., Ltd., abbreviated as Shanwaishan[13](index=13&type=chunk) - The legal representative is Gao Guangyong, and both the registered and office addresses are located at No. 1 Ciji Road, Liangjiang New Area, Chongqing[13](index=13&type=chunk) [II. Contact Person and Contact Information](index=6&type=section&id=II.%20Contact%20Person%20and%20Contact%20Information) This section provides the names, contact addresses, telephone numbers, fax numbers, and email addresses of the company's Board Secretary and Securities Affairs Representatives for investors and relevant parties to contact - The Board Secretary is Yu Shangling, and the Securities Affairs Representatives are Li Haiyan and Zou Bo[14](index=14&type=chunk) - The contact address for all is No. 1 Ciji Road, Liangjiang New Area, Chongqing, and the telephone number is 023-67460800[14](index=14&type=chunk) [III. Information Disclosure and Changes in Document Storage Location](index=6&type=section&id=III.%20Information%20Disclosure%20and%20Changes%20in%20Document%20Storage%20Location) This section specifies the newspapers selected by the company for information disclosure, the website address for publishing semi-annual reports, and the location where the company's semi-annual reports are kept - The newspapers selected by the company for information disclosure include "Shanghai Securities News", "China Securities Journal", "Securities Daily", "Securities Times", and "Economic Information Daily"[15](index=15&type=chunk) - The semi-annual report is published on www.sse.com.cn, and the storage location is the company's Board Secretary Office[15](index=15&type=chunk) [IV. Overview of Company Shares/Depositary Receipts](index=6&type=section&id=IV.%20Overview%20of%20Company%20Shares%2FDepositary%20Receipts) This section briefly introduces the company's share type, listing exchange and board, stock abbreviation, and stock code, and confirms the absence of depositary receipts - The company's shares are A-shares, listed on the Shanghai Stock Exchange STAR Market, with the stock abbreviation Shanwaishan and stock code 688410[16](index=16&type=chunk) - The company has no depositary receipts[17](index=17&type=chunk) [V. Other Relevant Information](index=7&type=section&id=V.%20Other%20Relevant%20Information) This section discloses information about the sponsor institution that performed continuous supervision duties during the reporting period, including its name, office address, names of signing sponsor representatives, and the period of continuous supervision - The sponsor institution performing continuous supervision duties is Western Securities Co., Ltd[18](index=18&type=chunk) - The signing sponsor representatives are Zou Yang and Reziye Wupuer, with the continuous supervision period from December 26, 2022, to December 31, 2025[18](index=18&type=chunk) [VI. Company's Key Accounting Data and Financial Indicators](index=7&type=section&id=VI.%20Company's%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company's operating revenue increased by 28.72% to **357.25 million yuan**, and net profit increased by 20.28% to **55.04 million yuan**. Net cash flow from operating activities significantly increased by 149.50%, primarily due to increased operating revenue and a significant rise in self-produced consumable sales Key Accounting Data (Jan-Jun) | Indicator | Current Reporting Period (yuan) | Prior Period (Adjusted) (yuan) | Period-on-period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 357,247,912.30 | 277,530,054.39 | 28.72 | | Total Profit | 60,135,203.24 | 44,692,004.80 | 34.55 | | Net profit attributable to shareholders of the listed company | 55,038,592.95 | 45,756,879.91 | 20.28 | | Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | 50,718,405.61 | 38,216,575.98 | 32.71 | | Net cash flow from operating activities | 68,450,024.65 | 27,435,213.55 | 149.50 | | Net assets attributable to shareholders of the listed company (Period-end) | 1,718,780,783.58 | 1,687,060,396.08 | 1.88 | | Total Assets (Period-end) | 2,058,767,101.19 | 2,011,555,609.34 | 2.35 | Key Financial Indicators (Jan-Jun) | Indicator | Current Reporting Period | Prior Period (Adjusted) | Period-on-period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.1713 | 0.1424 | 20.29 | | Diluted Earnings Per Share (yuan/share) | 0.1713 | 0.1424 | 20.29 | | Basic Earnings Per Share after deducting non-recurring gains and losses (yuan/share) | 0.1578 | 0.1189 | 32.72 | | Weighted Average Return on Net Assets (%) | 3.21 | 2.66 | Increased by 0.55 percentage points | | Weighted Average Return on Net Assets after deducting non-recurring gains and losses (%) | 2.96 | 2.22 | Increased by 0.74 percentage points | | R&D investment as a percentage of operating revenue (%) | 10.22 | 9.59 | Increased by 0.63 percentage points | - The company's operating revenue and profit growth are primarily due to: 1. Continuous increase in market share of blood purification equipment; 2. Significant increase in sales revenue of self-produced blood purification consumables[22](index=22&type=chunk) - The 149.50% increase in net cash flow from operating activities is mainly due to increased operating revenue and higher cash received from sales of goods and provision of services[22](index=22&type=chunk) [VII. Differences in Accounting Data under Domestic and Overseas Accounting Standards](index=8&type=section&id=VII.%20Differences%20in%20Accounting%20Data%20under%20Domestic%20and%20Overseas%20Accounting%20Standards) This section states that there are no differences in accounting data under domestic and overseas accounting standards for the company - The company has no differences in accounting data under domestic and overseas accounting standards[23](index=23&type=chunk) [VIII. Non-recurring Gains and Losses Items and Amounts](index=8&type=section&id=VIII.%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, the company's total non-recurring gains and losses amounted to **4.32 million yuan**, primarily including government grants, fair value changes in financial assets, and other non-operating income and expenses Non-recurring Gains and Losses Items and Amounts | Non-recurring Gains and Losses Item | Amount (yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets | -460,052.46 | | Government grants recognized in current profit or loss | 3,115,111.97 | | Gains or losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains or losses from disposal of financial assets and liabilities | 9,591,439.87 | | Other non-operating income and expenses apart from the above | -7,124,621.82 | | Less: Income tax impact | 806,749.32 | | Minority interest impact (after tax) | -5,059.10 | | **Total** | **4,320,187.34** | [IX. Companies with Equity Incentives or Employee Stock Ownership Plans May Choose to Disclose Net Profit after Deducting the Impact of Share-based Payments](index=9&type=section&id=IX.%20Companies%20with%20Equity%20Incentives%20or%20Employee%20Stock%20Ownership%20Plans%20May%20Choose%20to%20Disclose%20Net%20Profit%20after%20Deducting%20the%20Impact%20of%20Share-based%20Payments) During the reporting period, the company's net profit after deducting the impact of share-based payments was **62.87 million yuan**, an increase of 3.25% year-on-year Net Profit after Deducting the Impact of Share-based Payments | Key Accounting Data | Current Reporting Period (Jan-Jun) (yuan) | Prior Period (Adjusted) (yuan) | Period-on-period Change (%) | | :--- | :--- | :--- | :--- | | Net profit after deducting the impact of share-based payments | 62,871,803.29 | 60,892,880.93 | 3.25 | [X. Explanation of Non-GAAP Performance Indicators](index=9&type=section&id=X.%20Explanation%20of%20Non-GAAP%20Performance%20Indicators) This section states that the company has no non-GAAP performance indicators - The company has no non-GAAP performance indicators[27](index=27&type=chunk) [Section 3 Management Discussion and Analysis](index=10&type=section&id=Section%203%20Management%20Discussion%20and%20Analysis) [I. Overview of the Company's Industry and Main Business during the Reporting Period](index=10&type=section&id=I.%20Overview%20of%20the%20Company's%20Industry%20and%20Main%20Business%20during%20the%20Reporting%20Period) The company specializes in the field of blood purification medical devices, providing products and services for patients with end-stage renal disease and critically ill patients. The global number of ESRD patients continues to grow, with China's dialysis patient population reaching 1.183 million. The CRRT market is projected to grow at an annual rate of over 20% in the next seven years, indicating broad market prospects. The company holds a leading position in both blood purification equipment and consumables in China and has built a competitive advantage through a full industry chain layout and intelligent management system [(I) Industry Overview](index=10&type=section&id=(I)%20Industry%20Overview) The blood purification industry has broad market prospects, with the global number of ESRD patients continuously growing, China's dialysis patient population reaching 1.183 million, and the CRRT market expected to grow at over 20% annually for the next seven years. Blood purification equipment is a technology-intensive high-tech industry, where domestic brands are gradually increasing their market share, and the company ranks first among domestic brands in both CRRT equipment and hemodialysis machine market share - The global ESRD patient population increased from 9.133 million in 2019 to 11.139 million in 2023, with a CAGR of 5.1%[30](index=30&type=chunk) - As of the end of December 2024, the total number of dialysis patients in China reached 1.183 million, including 1.027 million hemodialysis patients[31](index=31&type=chunk) - In 2023, China's CRRT market size was approximately **1.5 billion yuan**, projected to grow at an annual rate exceeding 20% over the next seven years, potentially surpassing **6 billion yuan** by 2030[31](index=31&type=chunk) - In the first half of 2025, the company's CRRT equipment achieved a **20.42% market share** in winning bids, ranking third overall and first among domestic brands[37](index=37&type=chunk)[40](index=40&type=chunk) - In the first half of 2025, the company's hemodialysis machine equipment achieved a **15.29% market share** in winning bids, ranking third overall and first among domestic independent brands[37](index=37&type=chunk)[39](index=39&type=chunk) [(II) Main Business, Products, or Services](index=12&type=section&id=(II)%20Main%20Business%2C%20Products%2C%20or%20Services) The company's main business covers the R&D, production, and sales of blood purification equipment and consumables, and provides chain hemodialysis medical services. Its product line includes blood perfusion machines, continuous renal replacement therapy equipment, hemodialysis machines, and other equipment, as well as hemodialysis concentrates, dialyzers, and other consumables. The company also offers smart hemodialysis management services through its "Hemodialysis Center Intelligent Management System" - The company is a national high-tech enterprise specializing in the R&D, production, and sales of blood purification equipment and consumables, and providing chain hemodialysis medical services[42](index=42&type=chunk) - In blood purification equipment, the company has obtained **5 Class III medical device registration certificates**, with all product series listed in the "Excellent Domestic Medical Equipment Product Catalog"[43](index=43&type=chunk) - In blood purification consumables, the company has obtained **7 Class III medical device registration certificates** for self-produced consumables, essentially completing a full product line layout[44](index=44&type=chunk) - The company has built and operates **6 chain hemodialysis centers**, providing hemodialysis medical services[46](index=46&type=chunk) - The independently developed "Hemodialysis Center Intelligent Management System (HDIMS)" creates an "Internet+" service model integrating "equipment + consumables + medical staff + patients + dialysis centers"[46](index=46&type=chunk) [(III) Main Operating Model](index=13&type=section&id=(III)%20Main%20Operating%20Model) The company adopts an independent R&D model, relying on national-level scientific and technological innovation platforms for technology research and product development. Its procurement model strictly adheres to quality management systems, managing suppliers throughout their lifecycle. The production model is make-to-order, with appropriate safety stock for self-produced consumables. The sales model combines direct sales and distribution domestically, and primarily distribution internationally. The after-sales service system is comprehensive, offering on-site service within 48 hours. In terms of informatization, the company actively promotes digital transformation, achieving informatized management and intelligent operations across R&D, production, and operations - R&D Model: Adopts independent R&D, relying on national-level scientific and technological innovation platforms, and has established a comprehensive design and development system and process[48](index=48&type=chunk) - Procurement Model: Establishes a procurement department, strictly adheres to the quality management system, and manages suppliers throughout their lifecycle[50](index=50&type=chunk) - Production Model: Blood purification equipment and consumables adopt a make-to-order approach, while self-produced consumable products maintain appropriate safety stock based on market forecasts[51](index=51&type=chunk) - Sales Model: Domestic sales combine direct sales and distribution, international sales are primarily distribution; chain hemodialysis medical services are mainly direct sales[52](index=52&type=chunk) - Service Model: Established a comprehensive after-sales service system, committing to arrive on-site within 48 hours of user feedback, and providing remote operation and maintenance services[53](index=53&type=chunk) - Informatization Construction: Actively promotes digital transformation and upgrades, building systems such as ERP, PLM, MES, WMS, SCM, CRM, OA, ROMS, UDI, and HDIMS to achieve interconnection and intelligent operations[54](index=54&type=chunk)[55](index=55&type=chunk) [II. Discussion and Analysis of Operations](index=15&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operations) During the reporting period, the company continued to increase R&D investment, with R&D expenses growing by 37.12% and R&D personnel by 38.01%, achieving breakthroughs in multiple new product developments. Domestic and international markets were dual-driven, with domestic revenue growing by 25.15% and international revenue by 41.30%, particularly strong in emerging markets like North America and Africa. The company also continuously optimized its quality management capabilities through automation upgrades and informatization, and implemented equity incentives to boost employee motivation - During the reporting period, the company's R&D investment was **36.51 million yuan**, a year-on-year increase of **37.12%**[55](index=55&type=chunk) - The number of R&D personnel increased by **38.01%** year-on-year, reaching 236 people[55](index=55&type=chunk)[101](index=101&type=chunk) - Significant breakthroughs were achieved in the R&D of new hemodialysis machines, continuous renal replacement therapy equipment, high-performance dialyzers, and adsorption columns[56](index=56&type=chunk) - Domestic market achieved operating revenue of **270.43 million yuan**, a year-on-year increase of **25.15%**[59](index=59&type=chunk) - International market achieved revenue of **86.82 million yuan**, a year-on-year increase of **41.30%**, with significant sales growth in emerging markets such as North America and Africa[62](index=62&type=chunk) - The company's products obtained **22 new overseas blood purification equipment registration certificates** and **2 blood purification consumable registration certificates**, with high-flux and low-flux dialyzers and dialysate filters having obtained EU MDR certificates[62](index=62&type=chunk) - The company continuously upgraded its mechanical and electronic component assembly lines and final assembly lines through automation and capacity expansion, and established a Unique Device Identification (UDI) system and Manufacturing Execution System (MES)[64](index=64&type=chunk) - Implemented the "2024 Employee Stock Ownership Plan" and "2023 Restricted Stock Incentive Plan", setting performance assessment requirements at both company and individual levels[66](index=66&type=chunk) [III. Analysis of Core Competitiveness during the Reporting Period](index=17&type=section&id=III.%20Analysis%20of%20Core%20Competitiveness%20during%20the%20Reporting%20Period) The company's core competitiveness lies in six aspects: technological innovation, customer resources and brand, full industry chain and product line, R&D team, fast and efficient after-sales service, and a stable and professional management team. During the reporting period, the company continued to invest in R&D of blood purification equipment and consumables, obtaining multiple patents and certifications, and consolidating its industry-leading position through long-term accumulated market reputation and a full industry chain layout [(I) Core Competitiveness Analysis](index=17&type=section&id=(I)%20Core%20Competitiveness%20Analysis) The company maintains a leading position in blood purification equipment and consumable R&D, leveraging national-level scientific and technological innovation platforms, multiple national awards, and patents. Its products are sold to thousands of medical institutions domestically and internationally, establishing strong customer resources and brand advantages. Through a full industry chain layout, professional R&D and management teams, and fast and efficient after-sales service, the company sustains robust competitiveness in the industry - The company possesses national-level enterprise technology centers, national postdoctoral research workstations, and other scientific and technological innovation platforms, having received multiple national awards such as the "National Science and Technology Progress Award Second Prize"[68](index=68&type=chunk) - The company's hemodialysis machines feature online blood pressure, blood volume, Kt/V, and extracorporeal circulation blood temperature monitoring, complying with the latest national medical insurance policies and offering significant competitive advantages[69](index=69&type=chunk) - As of the end of the reporting period, the company holds **12 medical device product registration certificates** (all Class III medical devices) and **6 products have obtained CE certification**[69](index=69&type=chunk) - The company's equipment has been sold to thousands of medical institutions domestically and internationally, including many renowned large Class A tertiary hospitals, and exported to over 100 countries and regions worldwide[72](index=72&type=chunk) - The company's industry chain covers all aspects of "blood purification equipment + blood purification consumables + dialysis medical services + informatization management system", demonstrating strong collaborative innovation capabilities[73](index=73&type=chunk) - The company boasts a multidisciplinary, multi-level, and well-structured R&D team that has overcome key technical challenges such as flow balance systems and online ion concentration monitoring and control[74](index=74&type=chunk) - The company's after-sales service team commits to arriving on-site within 48 hours of user feedback to provide maintenance, upkeep, and training[75](index=75&type=chunk) - The company's core management team has an average tenure of over 15 years with the company and an average industry experience of over 20 years[76](index=76&type=chunk) [(II) Events during the Reporting Period that Severely Affected the Company's Core Competitiveness, Impact Analysis, and Countermeasures](index=19&type=section&id=(II)%20Events%20during%20the%20Reporting%20Period%20that%20Severely%20Affected%20the%20Company's%20Core%20Competitiveness%2C%20Impact%20Analysis%2C%20and%20Countermeasures) During the reporting period, there were no events that severely affected the company's core competitiveness - During the reporting period, there were no events that severely affected the company's core competitiveness[78](index=78&type=chunk) [(III) Core Technologies and R&D Progress](index=19&type=section&id=(III)%20Core%20Technologies%20and%20R%26D%20Progress) The company possesses multiple core technologies in continuous renal replacement therapy equipment, hemodialysis machines, and blood purification consumables, including multi-organ function support technology, fluid balance feedback control technology, and online dialysate preparation and monitoring technology. These technologies were developed independently, and multiple patents and software copyrights have been applied for or granted, forming a comprehensive technological barrier. During the reporting period, the company continued to increase R&D investment, achieving multiple R&D results and intellectual property rights, further solidifying its technological leadership - Continuous renal replacement therapy equipment integrates **14 treatment modes**, surpassing similar products in treatment modes, pressure monitoring accuracy, and dehydration accuracy[78](index=78&type=chunk) - The fluid balance feedback control technology for blood purification equipment controls fluid balance within an error of **±20 mL/h**, with a cumulative error not exceeding 100mL, superior to industry standards[79](index=79&type=chunk)[80](index=80&type=chunk) - Hemodialysis machines offer treatment modes such as hemodialysis, online hemofiltration, online hemodiafiltration, and isolated ultrafiltration, overcoming multiple technical challenges[84](index=84&type=chunk) - The company has accumulated core technologies in blood purification consumables, including consumable supply technology for online dialysate preparation, dialyzer/filter structural design technology, and adsorbent preparation technology[92](index=92&type=chunk) - During the reporting period, the company applied for **1 invention patent**, **10 utility model patents**, **6 design patents**, **4 software copyrights**, and **6 other intellectual property rights**[96](index=96&type=chunk) - During the reporting period, the company obtained **4 invention patents**, **8 utility model patents**, **4 design patents**, **6 software copyrights**, and **1 other intellectual property right**; it also obtained **1 CE certification certificate** (for high-flux and low-flux dialyzers)[96](index=96&type=chunk) - As of the end of the reporting period, the company has obtained **62 invention patents**, **103 utility model patents**, **39 design patents**, **52 software copyrights**, and **149 other intellectual property rights**[96](index=96&type=chunk) [IV. Risk Factors](index=42&type=section&id=IV.%20Risk%20Factors) The company faces core competitiveness risks such as new product R&D failure, loss of core technical personnel, leakage of core technologies, and technological iteration. Operational risks include revocation of qualification licenses, obstruction of import procurement for some core raw materials, product quality control, leased properties, and insufficient domestic market expansion. Financial risks involve accounts receivable bad debt losses and changes in medical insurance policies. Industry risks include market competition, centralized volume-based procurement policies for consumables, and changes in regulatory policies. Additionally, macroeconomic factors like exchange rate fluctuations and changes in international trade policies may also have adverse effects - New product R&D may face risks of technical route deviation, excessive costs, slow progress, or inability to pass registration and approval[113](index=113&type=chunk) - Loss of core technical personnel or leakage of core technologies could adversely affect the company's R&D, production, and core competitiveness[114](index=114&type=chunk)[116](index=116&type=chunk) - The company may face technological iteration risks if future treatment technologies undergo significant innovation or if the company fails to maintain its industry-leading technological level[117](index=117&type=chunk) - The medical industry is strictly regulated, and the company's and its products' qualifications and licenses may be revoked or not renewed[118](index=118&type=chunk) - Some core raw materials (such as chips, temperature sensors, solenoid valves) require import procurement, and global trade frictions may affect procurement[119](index=119&type=chunk) - The book value of accounts receivable is increasing, and unfavorable external economic conditions or ineffective credit management may lead to increased bad debt losses[124](index=124&type=chunk) - Changes in national medical insurance settlement policies (e.g., reduction in payment ratios, narrowing of settlement scope) may lead to a decrease in patient visits and operating revenue[125](index=125&type=chunk) - The market for blood purification equipment and consumables is highly competitive, and centralized volume-based procurement policies for consumables may lead to product price reductions or failure to win bids[126](index=126&type=chunk)[127](index=127&type=chunk) - Exchange rate fluctuations may cause exchange gains or losses from foreign currency receipts and payments, and changes in international trade policies may adversely affect overseas sales operations[129](index=129&type=chunk)[130](index=130&type=chunk) [V. Major Operating Conditions during the Reporting Period](index=45&type=section&id=V.%20Major%20Operating%20Conditions%20during%20the%20Reporting%20Period) This section elaborates on the company's operating conditions during the reporting period, including the financial performance of its main business, asset and liability status, and investment activity analysis. The company's operating revenue and costs both increased, sales expenses and R&D investment rose, while administrative and financial expenses decreased. Construction in progress and prepayments for long-term assets significantly increased, reflecting the company's continuous investment in industrial parks and R&D projects [(I) Main Business Analysis](index=45&type=section&id=(I)%20Main%20Business%20Analysis) During the reporting period, the company's operating revenue increased by 28.72% year-on-year, primarily due to the steady growth in blood purification equipment sales revenue and a significant increase in self-produced blood purification consumable sales revenue. Operating costs, sales expenses, and R&D expenses all increased, while administrative and financial expenses decreased. Net cash flow from operating activities significantly increased by 149.50% - Operating revenue increased by **28.72%** year-on-year, mainly due to steady growth in blood purification equipment sales revenue and a significant increase in self-produced blood purification consumable sales revenue[134](index=134&type=chunk) - Operating costs increased by **19.24%** year-on-year, mainly due to increased sales volume of blood purification equipment and consumables[134](index=134&type=chunk) - Sales expenses increased by **26.64%** year-on-year, mainly due to expanding marketing network construction and increasing business channel development efforts[134](index=134&type=chunk) - Administrative expenses decreased by **5.96%** year-on-year, mainly due to a decrease in office expenses[134](index=134&type=chunk) - R&D expenses increased by **31.11%** year-on-year, mainly due to increased investment in R&D team building and talent acquisition[134](index=134&type=chunk) - Net cash flow from operating activities increased by **149.50%** year-on-year, mainly due to increased operating revenue[134](index=134&type=chunk) - Net cash flow from investing activities decreased by **4,347.96%** year-on-year, mainly due to increased investment in the Shanwaishan Blood Purification Industrial Park construction and increased purchases of wealth management products[134](index=134&type=chunk) - Net cash flow from financing activities was primarily due to dividend distribution[135](index=135&type=chunk) [(II) Explanation of Significant Changes in Profit Due to Non-Operating Activities](index=45&type=section&id=(II)%20Explanation%20of%20Significant%20Changes%20in%20Profit%20Due%20to%20Non-Operating%20Activities) During the reporting period, there were no significant changes in profit due to non-operating activities [(III) Analysis of Assets and Liabilities](index=45&type=section&id=(III)%20Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, the company's total assets amounted to **2.06 billion yuan**, and total liabilities amounted to **350 million yuan**. Construction in progress and prepayments for long-term assets significantly increased, reflecting the company's continuous investment in industrial parks and R&D projects. Notes receivable and prepayments decreased, while notes payable and non-current liabilities due within one year increased Asset and Liability Changes | Item Name | Period-end Amount (yuan) | Prior Year-end Amount (yuan) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Notes Receivable | 665,601.08 | 1,558,746.21 | -57.30 | Decrease in bank acceptance bills received | | Prepayments | 8,438,635.39 | 14,334,582.97 | -41.13 | Decrease in prepayments for consumable purchases | | Construction in Progress | 130,787,239.01 | 67,999,000.40 | 92.34 | Increased investment in blood purification equipment and high-value consumables industrialization project and blood purification R&D center construction project | | Development Expenditures | 1,599,564.22 | 0 | Not applicable | Hemodialyzer R&D project entered development phase and began capitalization in this period | | Other Non-current Assets | 39,735,785.29 | 21,509,225.76 | 84.74 | Increase in prepayments for long-term assets | | Notes Payable | 36,707,252.27 | 25,662,052.33 | 43.04 | Increased demand for payment of goods with bank acceptance bills | | Non-current Liabilities Due within One Year | 1,983,668.55 | 1,492,288.31 | 32.93 | Increase in lease liabilities due within 1 year | | Other Current Liabilities | 4,728,931.07 | 2,689,707.19 | 75.82 | Increase in deferred output VAT | [(IV) Investment Status Analysis](index=48&type=section&id=(IV)%20Investment%20Status%20Analysis) At the end of the reporting period, the company's financial assets measured at fair value amounted to **791.56 million yuan**, primarily including bank wealth management products, structured deposits, and trust plans. The fair value change gain for the current period was **0.68 million yuan**, with both purchase and sale/redemption amounts being substantial Financial Assets Measured at Fair Value | Asset Category | Period-start Amount (yuan) | Fair Value Change Gain/Loss for Current Period (yuan) | Current Period Purchase Amount (yuan) | Current Period Sale/Redemption Amount (yuan) | Period-end Amount (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Other | 763,889,209.17 | 679,606.97 | 1,679,600,000.00 | 1,652,600,000.00 | 791,562,204.14 | | Of which: Trading financial assets/Financial assets measured at fair value with changes recognized in current profit or loss | 763,882,597.17 | 679,606.97 | 1,679,600,000.00 | 1,652,600,000.00 | 791,562,204.14 | [(V) Major Asset and Equity Sales](index=49&type=section&id=(V)%20Major%20Asset%20and%20Equity%20Sales) During the reporting period, the company had no major asset and equity sales [(VI) Analysis of Major Holding and Participating Companies](index=49&type=section&id=(VI)%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) This section analyzes the operating performance of the company's major holding subsidiaries, including Tianwaitian, Kangmeijia, Delaifu, and Yuanzhongyuan. Among them, Tianwaitian and Kangmeijia achieved profitability, while Delaifu and Yuanzhongyuan incurred losses Operating Performance of Major Holding and Participating Companies | Company Name | Company Type | Main Business | Registered Capital (10,000 yuan) | Total Assets (10,000 yuan) | Net Assets (10,000 yuan) | Operating Revenue (10,000 yuan) | Operating Profit (10,000 yuan) | Net Profit (10,000 yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Tianwaitian | Subsidiary | Medical device production and sales | 5,100.00 | 19,651.62 | 4,406.17 | 9,346.91 | 344.43 | 428.89 | | Kangmeijia | Subsidiary | Enterprise management and consulting | 3,500.00 | 1,240.18 | 1,218.55 | 223.71 | 108.67 | 108.67 | | Delaifu | Subsidiary | Medical device production and sales | 2,606.52 | 3,512.01 | -3,089.85 | 853.62 | -271.98 | -273.67 | | Yuanzhongyuan | Subsidiary | Bio-based material R&D, production and sales | 35,000.00 | 8,756.83 | 8,027.87 | 91.05 | -302.00 | -302.00 | [(VII) Information on Structured Entities Controlled by the Company](index=50&type=section&id=(VII)%20Information%20on%20Structured%20Entities%20Controlled%20by%20the%20Company) During the reporting period, the company had no structured entities under its control [VI. Other Disclosure Matters](index=50&type=section&id=VI.%20Other%20Disclosure%20Matters) During the reporting period, the company had no other matters requiring disclosure [Section 4 Corporate Governance, Environment and Society](index=51&type=section&id=Section%204%20Corporate%20Governance%2C%20Environment%20and%20Society) [I. Changes in the Company's Directors, Supervisors, Senior Management, and Core Technical Personnel](index=51&type=section&id=I.%20Changes%20in%20the%20Company's%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Core%20Technical%20Personnel) During the reporting period, there were no changes in the company's directors, supervisors, senior management, and core technical personnel [II. Profit Distribution or Capital Reserve Conversion Plan](index=51&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) The company's proposed semi-annual profit distribution plan or capital reserve conversion to share capital plan is none - The company's proposed semi-annual profit distribution plan or capital reserve conversion to share capital plan is none[144](index=144&type=chunk) [III. Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures and Their Impact](index=51&type=section&id=III.%20Company's%20Equity%20Incentive%20Plan%2C%20Employee%20Stock%20Ownership%20Plan%2C%20or%20Other%20Employee%20Incentive%20Measures%20and%20Their%20Impact) During the reporting period, the company completed the non-trading transfer of its 2024 employee stock ownership plan, with a total of **1,151,023 shares** of company stock transferred to the employee stock ownership plan's securities account, accounting for **0.53%** of the total share capital. This plan aims to improve the incentive and restraint mechanism, attract and retain talent, and the allocation plan for the reserved portion has been determined - On April 24, 2024, the company's Workers' Congress reviewed and approved the "Company's 2024 Employee Stock Ownership Plan (Draft)"[145](index=145&type=chunk) - On May 16, 2024, the company's General Meeting of Shareholders reviewed and approved the "Company's 2024 Employee Stock Ownership Plan Management Measures" and the "Draft"[146](index=146&type=chunk) - **70 employees** actually participated in the subscription, with a total actual subscription capital of **14,123,053 yuan**, subscribing to **14,123,053 units**, corresponding to **1,151,023 shares**[146](index=146&type=chunk)[147](index=147&type=chunk) - On June 21, 2024, **1,151,023 shares** of company stock were non-trading transferred to the "Chongqing Shanwaishan Blood Purification Technology Co., Ltd. - 2024 Employee Stock Ownership Plan" securities account, at a transfer price of **12.27 yuan/share**[147](index=147&type=chunk) - The shares held by this employee stock ownership plan's securities account account for **0.53%** of the total share capital, of which **209,323 shares** are reserved as a reserved portion[148](index=148&type=chunk) - On October 25, 2024, the Management Committee reviewed and approved the allocation proposal for the reserved portion, determining that no more than 2 subscribers would subscribe for **188,958 units** of the reserved portion, which was initially funded by Chairman Gao Guangyong[148](index=148&type=chunk) [IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=52&type=section&id=IV.%20Environmental%20Information%20of%20Listed%20Companies%20and%20Their%20Major%20Subsidiaries%20Included%20in%20the%20List%20of%20Enterprises%20Required%20to%20Disclose%20Environmental%20Information%20by%20Law) This section states that the company is not included in the list of enterprises required to disclose environmental information by law [V. Specifics of Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, and Other Work](index=52&type=section&id=V.%20Specifics%20of%20Consolidating%20and%20Expanding%20Poverty%20Alleviation%20Achievements%2C%20Rural%20Revitalization%2C%20and%20Other%20Work) The company actively fulfills its social responsibilities, donating centralized waste transfer containers to Niantuo Village, Dongwenquan Town, Banan District in June 2025, contributing to rural revitalization and improving the living environment - In June 2025, the company donated centralized waste transfer containers to Niantuo Village, Dongwenquan Town, Banan District, to enhance the efficiency of rural living environment governance[149](index=149&type=chunk) [Section 5 Significant Matters](index=53&type=section&id=Section%205%20Significant%20Matters) [I. Fulfillment of Commitments](index=53&type=section&id=I.%20Fulfillment%20of%20Commitments) During the reporting period, all commitments made by the company's actual controller, shareholders, related parties, and the company itself were strictly fulfilled, including commitments regarding share lock-up, share price stabilization, avoidance of horizontal competition, reduction of related party transactions, and truthfulness of information disclosure - Gao Guangyong (actual controller) committed not to transfer shares within **36 months** from the date of stock listing, and the reduction price shall not be lower than the offering price within two years after the lock-up period expires[155](index=155&type=chunk) - Shareholders such as Chongqing Dexiang, Yuanwaiyuan, and Chongqing Derui committed not to transfer shares within **36 months** from the date of acquiring company shares, and the reduction price shall not be lower than the offering price within two years after the lock-up period expires[156](index=156&type=chunk)[157](index=157&type=chunk) - The company's directors and senior management committed not to transfer more than **25%** of their total shares annually during their tenure, not to transfer shares within six months of leaving office, and the reduction price shall not be lower than the offering price within two years after the lock-up period expires[158](index=158&type=chunk) - The company, its controlling shareholder, actual controller, directors, and senior management committed to taking repurchase or增持 measures if the share price stabilization conditions are met within three years after the company's stock listing[161](index=161&type=chunk)[162](index=162&type=chunk) - The company and its controlling shareholder, actual controller committed to repurchasing the publicly offered shares if the offering constitutes fraudulent issuance[163](index=163&type=chunk) - The controlling shareholder and actual controller committed to avoiding horizontal competition and prioritizing business opportunities for the company[173](index=173&type=chunk) - The company's controlling shareholder, actual controller, and other related parties committed to reducing related party transactions and adhering to fair and reasonable principles[174](index=174&type=chunk) - The company committed not to provide financial assistance to equity incentive recipients, and all incentive recipients committed to returning all benefits obtained from the incentive plan if information disclosure documents contain false records[175](index=175&type=chunk)[176](index=176&type=chunk) [II. Non-operating Fund Occupation by Controlling Shareholder and Other Related Parties during the Reporting Period](index=62&type=section&id=II.%20Non-operating%20Fund%20Occupation%20by%20Controlling%20Shareholder%20and%20Other%20Related%20Parties%20during%20the%20Reporting%20Period) During the reporting period, there was no non-operating fund occupation by the controlling shareholder and other related parties - During the reporting period, there was no non-operating fund occupation by the controlling shareholder and other related parties[177](index=177&type=chunk) [III. Irregular Guarantees](index=62&type=section&id=III.%20Irregular%20Guarantees) During the reporting period, the company had no irregular guarantees - During the reporting period, the company had no irregular guarantees[177](index=177&type=chunk) [IV. Semi-Annual Report Audit Status](index=63&type=section&id=IV.%20Semi-Annual%20Report%20Audit%20Status) This semi-annual report has not been audited - This semi-annual report has not been audited[4](index=4&type=chunk) [V. Changes and Handling of Matters Involving Non-Standard Audit Opinions in the Previous Year's Annual Report](index=63&type=section&id=V.%20Changes%20and%20Handling%20of%20Matters%20Involving%20Non-Standard%20Audit%20Opinions%20in%20the%20Previous%20Year's%20Annual%20Report) During the reporting period, there were no changes or handling of matters involving non-standard audit opinions in the previous year's annual report [VI. Bankruptcy and Reorganization Matters](index=63&type=section&id=VI.%20Bankruptcy%20and%20Reorganization%20Matters) During the reporting period, the company had no bankruptcy and reorganization matters [VII. Major Litigation and Arbitration Matters](index=63&type=section&id=VII.%20Major%20Litigation%20and%20Arbitration%20Matters) During the reporting period, the company had no major litigation or arbitration matters - During the reporting period, the company had no major litigation or arbitration matters[178](index=178&type=chunk) [VIII. Alleged Violations, Penalties, and Rectification of Listed Companies and Their Directors, Supervisors, Senior Management, Controlling Shareholders, and Actual Controllers](index=63&type=section&id=VIII.%20Alleged%20Violations%2C%20Penalties%2C%20and%20Rectification%20of%20Listed%20Companies%20and%20Their%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20Controlling%20Shareholders%2C%20and%20Actual%20Controllers) During the reporting period, the company and its directors, supervisors, senior management, controlling shareholders, and actual controllers were not involved in any alleged violations, penalties, or rectification situations [IX. Explanation of the Integrity Status of the Company and Its Controlling Shareholder and Actual Controller during the Reporting Period](index=63&type=section&id=IX.%20Explanation%20of%20the%20Integrity%20Status%20of%20the%20Company%20and%20Its%20Controlling%20Shareholder%20and%20Actual%20Controller%20during%20the%20Reporting%20Period) During the reporting period, the integrity status of the company and its controlling shareholder and actual controller was good, with no matters requiring explanation [X. Major Related Party Transactions](index=63&type=section&id=X.%20Major%20Related%20Party%20Transactions) During the reporting period, the company had no major related party transactions related to daily operations, asset or equity acquisitions/disposals, or joint external investments. The company had no related party creditor-debtor relationships, nor any financial business with related financial companies - During the reporting period, the company had no related party transactions related to daily operations[179](index=179&type=chunk) - During the reporting period, the company had no related party transactions involving asset or equity acquisitions/disposals[179](index=179&type=chunk) - During the reporting period, the company had no major related party transactions involving joint external investments[180](index=180&type=chunk) - During the reporting period, the company had no related party creditor-debtor relationships[180](index=180&type=chunk) - During the reporting period, the company had no financial business with related financial companies or financial companies controlled by the company and related parties[180](index=180&type=chunk) [XI. Major Contracts and Their Performance](index=64&type=section&id=XI.%20Major%20Contracts%20and%20Their%20Performance) During the reporting period, the company had no entrustment, contracting, or leasing matters, nor any major guarantees or other major contracts - During the reporting period, the company had no entrustment, contracting, or leasing matters[180](index=180&type=chunk) - During the reporting period, the company had no major guarantees[181](index=181&type=chunk) - During the reporting period, the company had no other major contracts[181](index=181&type=chunk) [XII. Explanation of Progress in the Use of Raised Funds](index=65&type=section&id=XII.%20Explanation%20of%20Progress%20in%20the%20Use%20of%20Raised%20Funds) As of the end of the reporting period, the company's total proceeds from its initial public offering amounted to **1,168.94 million yuan**, with a net amount of **1,067.11 million yuan**. The cumulative amount of raised funds invested was **276.74 million yuan**, representing an investment progress of **25.93%**. The amount invested in the current year was **66.38 million yuan**. The company used a portion of its temporarily idle raised funds for cash management, with a period-end balance of **409.42 million yuan** Overall Use of Raised Funds | Indicator | Amount (10,000 yuan) | | :--- | :--- | | Total Raised Funds | 116,893.70 | | Net Raised Funds | 106,711.09 | | Total Investment Committed in Prospectus | 124,673.93 | | Cumulative Raised Funds Invested as of Period-end | 27,674.38 | | Cumulative Investment Progress of Raised Funds as of Period-end (%) | 25.93 | | Amount Invested in Current Year | 6,637.80 | | Percentage of Amount Invested in Current Year (%) | 6.22 | Details of Raised Fund Investment Projects | Project Name | Budget (10,000 yuan) | Cumulative Raised Funds Invested as of Period-end (10,000 yuan) | Investment Progress (%) | | :--- | :--- | :--- | :--- | | Blood Purification Equipment and High-Value Consumables Industrialization Project | 70,215.76 | 10,974.76 | 15.63 | | Blood Purification R&D Center Construction Project | 16,407.01 | 2,389.08 | 14.56 | | Marketing Network Upgrade and Remote O&M Service Platform Construction Project | 8,088.32 | 2,032.38 | 25.13 | | Replenishment of Working Capital | 12,000.00 | 12,278.16 | 102.32 | - The company and its subsidiaries plan to use a maximum of **900 million yuan** of temporarily idle raised funds for cash management, to purchase highly secure and liquid wealth management products, with a term not exceeding 12 months[184](index=184&type=chunk) - As of June 30, 2025, the company's balance of structured deposit products purchased with idle raised funds was **398 million yuan**, time deposit products balance was **9.42 million yuan**, and demand deposit products balance was **2 million yuan**, totaling **409.42 million yuan**[185](index=185&type=chunk) [XIII. Explanation of Other Significant Matters](index=69&type=section&id=XIII.%20Explanation%20of%20Other%20Significant%20Matters) During the reporting period, the company had no other significant matters requiring explanation [Section 6 Share Changes and Shareholder Information](index=70&type=section&id=Section%206%20Share%20Changes%20and%20Shareholder%20Information) [I. Share Capital Changes](index=70&type=section&id=I.%20Share%20Capital%20Changes) During the reporting period, there were no changes in the company's total ordinary shares and share capital structure - During the reporting period, there were no changes in the company's total ordinary shares and share capital structure[190](index=190&type=chunk) [II. Shareholder Information](index=70&type=section&id=II.%20Shareholder%20Information) As of the end of the reporting period, the company had **8,150 ordinary shareholders**. Among the top ten shareholders, Gao Guangyong held the highest proportion at **24.26%**, with most of his shares subject to lock-up conditions. Liu Yunjun, Hunan Xiangjiang Dajiankang Venture Capital Partnership (Limited Partnership), and others were also among the top ten shareholders - Total number of ordinary shareholders as of the end of the reporting period: **8,150 households**[191](index=191&type=chunk) Top Ten Shareholders' Shareholdings (Excluding Shares Lent through Securities Lending) | Shareholder Name | Period-end Shareholding (shares) | Proportion (%) | Number of Shares with Lock-up Conditions (shares) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | | Gao Guangyong | 77,961,620 | 24.26 | 77,925,510 | Domestic Natural Person | | Liu Yunjun | 39,325,212 | 12.24 | - | Domestic Natural Person | | Hunan Xiangjiang Liyuan Investment Management Co., Ltd. - Hunan Xiangjiang Dajiankang Venture Capital Partnership (Limited Partnership) | 35,521,600 | 11.06 | - | Other | | Zhuhai Xiuhang Equity Investment Partnership (Limited Partnership) | 14,314,143 | 4.45 | - | Other | | Chongqing Yuanwaiyuan Commercial Management Partnership (Limited Partnership) | 4,396,364 | 1.37 | 4,396,364 | Other | | Hunan Xiangjiang Liyuan Investment Management Co., Ltd. - Hunan Xiangjiang Liyuan Jiankun Venture Capital Partnership (Limited Partnership) | 3,836,316 | 1.19 | - | Other | | Bank of China Co., Ltd. - Boshi Medical and Healthcare Industry Mixed Securities Investment Fund | 3,256,951 | 1.01 | - | Other | | Zhang Lin | 2,901,239 | 0.90 | - | Domestic Natural Person | | China Ping An Insurance (Group) Co., Ltd. Enterprise Annuity Plan - China Merchants Bank Co., Ltd. | 2,658,905 | 0.83 | - | Other | | Chongqing Dexiang Commercial Management Partnership (Limited Partnership) | 2,649,585 | 0.82 | 2,649,585 | Other | - Gao Guangyong is the general partner and executive partner of Yuanwaiyuan and Chongqing Dexiang, and also an acting-in-concert party; Dajiankang and Liyuan Jiankun are acting-in-concert parties[194](index=194&type=chunk) Top Ten Shareholders with Lock-up Conditions and Lock-up Conditions | No. | Shareholder Name with Lock-up Conditions | Number of Shares with Lock-up Conditions (shares) | Date Available for Trading | Lock-up Conditions | | :--- | :--- | :--- | :--- | :--- | | 1 | Gao Guangyong | 77,925,510 | December 26, 2025 | 36 months from listing date | | 2 | Yuanwaiyuan | 4,396,364 | December 26, 2025 | 36 months from listing date | | 3 | Chongqing Dexiang | 2,649,585 | December 26, 2025 | 36 months from listing date | | 4 | Chongqing Derui | 1,790,615 | December 26, 2025 | 36 months from listing date | [III. Information on Directors, Supervisors, Senior Management, and Core Technical Personnel](index=74&type=section&id=III.%20Information%20on%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Core%20Technical%20Personnel) During the reporting period, Mr. Gao Guangyong, the company's Chairman, General Manager, and core technical personnel, increased his indirectly held shares in the company by **77,703 shares** through equity transfer - During the reporting period, Mr. Gao Guangyong, the company's Chairman, General Manager, and core technical personnel, indirectly increased his shareholding in the company by **77,703 shares** through acquiring **44,402 shares** from Ms. Tang Jianqin and **33,301 shares** from Mr. Li Zishuo, former partners of Chongqing Dexiang[197](index=197&type=chunk) [IV. Changes in Controlling Shareholder or Actual Controller](index=74&type=section&id=IV.%20Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) During the reporting period, there were no changes in the company's controlling shareholder or actual controller [V. Implementation and Changes of Depositary Receipt Arrangements during the Reporting Period](index=74&type=section&id=V.%20Implementation%20and%20Changes%20of%20Depositary%20Receipt%20Arrangements%20during%20the%20Reporting%20Period) During the reporting period, there were no implementation or changes in depositary receipt arrangements for the company [VI. Special Voting Rights Shares](index=74&type=section&id=VI.%20Special%20Voting%20Rights%20Shares) During the reporting period, the company had no special voting rights shares [VII. Preferred Shares Information](index=74&type=section&id=VII.%20Preferred%20Shares%20Information) During the reporting period, the company had no preferred shares information [Section 7 Bond-Related Information](index=74&type=section&id=Section%207%20Bond-Related%20Information) [I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=74&type=section&id=I.%20Corporate%20Bonds%20(Including%20Enterprise%20Bonds)%20and%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments - During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[199](index=199&type=chunk) [II. Convertible Corporate Bonds](index=74&type=section&id=II.%20Convertible%20Corporate%20Bonds) During the reporting period, the company had no convertible corporate bonds - During the reporting period, the company had no convertible corporate bonds[199](index=199&type=chunk) [Section 8 Financial Report](index=75&type=section&id=Section%208%20Financial%20Report) [I. Audit Report](index=75&type=section&id=I.%20Audit%20Report) This semi-annual report has not been audited - This semi-annual report has not been audited[4](index=4&type=chunk) [II. Financial Statements](index=75&type=section&id=II.%20Financial%20Statements) This section includes the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively presenting the company's financial position, operating results, and cash flow situation [Consolidated Balance Sheet](index=75&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, the company's consolidated total assets amounted to **2.06 billion yuan**, with current assets of **1.64 billion yuan** and non-current assets of **416.15 million yuan**. Total liabilities amounted to **349.56 million yuan**, and total owners' equity was **1.71 billion yuan** - As of June 30, 2025, consolidated total assets amounted to **2,058,767,101.19 yuan**[202](index=202&type=chunk) - Total current assets were **1,642,613,897.08 yuan**, and total non-current assets were **416,153,204.11 yuan**[201](index=201&type=chunk)[202](index=202&type=chunk) - Total liabilities were **349,563,851.96 yuan**, and total owners' equity was **1,709,203,249.23 yuan**[203](index=203&type=chunk) [Parent Company Balance Sheet](index=77&type=section&id=Parent%20Company%20Balance%20Sheet) As of June 30, 2025, the parent company's total assets amounted to **2.08 billion yuan**, with current assets of **1.59 billion yuan** and non-current assets of **488.80 million yuan**. Total liabilities amounted to **312.08 million yuan**, and total owners' equity was **1.77 billion yuan** - As of June 30, 2025, the parent company's total assets amounted to **2,079,774,529.38 yuan**[205](index=205&type=chunk) - Total current assets were **1,590,974,523.35 yuan**, and total non-current assets were **488,800,006.03 yuan**[205](index=205&type=chunk) - Total liabilities were **312,082,078.37 yuan**, and total owners' equity was **1,767,692,451.01 yuan**[206](index=206&type=chunk) [Consolidated Income Statement](index=79&type=section&id=Consolidated%20Income%20Statement) For the first half of 2025, the company's consolidated total operating revenue was **357.25 million yuan**, a year-on-year increase of **28.72%**. Net profit was **54.23 million yuan**, a year-on-year increase of **22.07%**. Net profit attributable to parent company shareholders was **55.04 million yuan**, a year-on-year increase of **20.28%** - For the first half of 2025, consolidated total operating revenue was **357,247,912.30 yuan**, a year-on-year increase of **28.72%**[208](index=208&type=chunk) - Net profit was **54,225,078.24 yuan**, and net profit attributable to parent company shareholders was **55,038,592.95 yuan**[210](index=210&type=chunk) - Basic earnings per share were **0.1713 yuan/share**, and diluted earnings per share were **0.1713 yuan/share**[210](index=210&type=chunk) [Parent Company Income Statement](index=81&type=section&id=Parent%20Company%20Income%20Statement) For the first half of 2025, the parent company's operating revenue was **252.09 million yuan**, a year-on-year increase of **26.46%**. Net profit was **51.66 million yuan**, a year-on-year increase of **22.99%** - For the first half of 2025, the parent company's operating revenue was **252,090,326.97 yuan**, a year-on-year increase of **26.46%**[212](index=212&type=chunk) - Net profit was **51,659,697.75 yuan**, a year-on-year increase of **22.99%**[213](index=213&type=chunk) [Consolidated Cash Flow Statement](index=83&type=section&id=Consolidated%20Cash%20Flow%20Statement) For the first half of 2025, the company's consolidated net cash flow from operating activities was **68.45 million yuan**, a year-on-year increase of **149.50%**. Net cash flow from investing activities was **-180.09 million yuan**, and net cash flow from financing activities was **-33.11 million yuan** - Net cash flow from operating activities was **68,450,024.65 yuan**, a year-on-year increase of **149.50%**[215](index=215&type=chunk) - Net cash flow from investing activities was **-180,089,492.50 yuan**[216](index=216&type=chunk) - Net cash flow from financing activities was **-33,111,672.69 yuan**[216](index=216&type=chunk) [Parent Company Cash Flow Statement](index=84&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) For the first half of 2025, the parent company's net cash flow from operating activities was **92.50 million yuan**, net cash flow from investing activities was **-130.61 million yuan**, and net cash flow from financing activities was **-32.10 million yuan** - Net cash flow from operating activities was **92,501,439.00 yuan**[218](index=218&type=chunk) - Net cash flow from investing activities was **-130,607,147.24 yuan**[219](index=219&type=chunk) - Net cash flow from financing activities was **-32,095,354.08 yuan**[219](index=219&type=chunk) [Consolidated Statement of Changes in Owners' Equity](index=86&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Owners'%20Equity) For the first half of 2025, the company's consolidated total owners' equity increased by **30.91 million yuan**, primarily due to an increase in total comprehensive income of **54.23 million yuan** and share-based payments recognized in owners' equity of **8.65 million yuan**, while profit distribution decreased by **31.96 million yuan** - The change amount for the current period (decrease indicated by "－") was **30,906,872.79 yuan**[221](index=221&type=chunk) - Total comprehensive income was **54,225,078.24 yuan**[222](index=222&type=chunk) - Share-based payments recognized in owners' equity amounted to **8,646,725.05 yuan**[222](index=222&type=chunk) - Distribution to owners (or shareholders) was **-31,964,930.50 yuan**[223](index=223&type=chunk) [Parent Company Statement of Changes in Owners' Equity](index=92&type=section&id=Parent%20Company%20Statement%20of%20Changes%20in%20Owners'%20Equity) For the first half of 2025, the parent company's total owners' equity increased by **28.34 million yuan**, primarily due to an increase in total comprehensive income of **51.66 million yuan** and share-based payments recognized in owners' equity of **8.65 million yuan**, while profit distribution decreased by **31.96 million yuan** - The change amount for the current period (decrease indicated by "－") was **28,341,492.30 yuan**[228](index=228&type=chunk) - Total comprehensive income was **51,659,697.75 yuan**[228](index=228&type=chunk) - Share-based payments recognized in owners' equity amounted to **8,646,725.05 yuan**[228](index=228&type=chunk) - Distribution to owners (or shareholders) was **-31,964,930.50 yuan**[228](index=228&type=chunk) [III. Company's Basic Information](index=95&type=section&id=III.%20Company's%20Basic%20Information) The company is registered at No. 1 Ciji Road, Liangjiang New Area, Chongqing, primarily engaged in the R&D, production, and sales of hemodialysis equipment and consumables, as well as hemodialysis services. The controlling shareholder and actual controller is Gao Guangyong. These financial statements were approved for issuance by the Board of Directors on August 19, 2025 - The company is registered at No. 1 Ciji Road, Liangjiang New Area, Chongqing, and its organizational form is a joint-stock company[231](index=231&type=chunk) - The company is primarily engaged in the production and sales of hemodialysis equipment, production and sales of hemodialysis consumables, and hemodialysis services[231](index=231&type=chunk) - The company's controlling shareholder and actual controller is Gao Guangyong[231](index=231&type=chunk) - These financial statements were approved for issuance by the Group's Board of Directors on August 19, 2025[231](index=231&type=chunk) [IV. Basis of Financial Statement Preparation](index=95&type=section&id=IV.%20Basis%20of%20Financial%20Statement%20Preparation) These financial statements are prepared on a going concern basis, adhering to Enterprise Accounting Standards, their application guidelines, interpretations, and other relevant regulations, and referencing the CSRC's information disclosure and reporting rules. The company's management has assessed and confirmed its ability to continue as a going concern for the next 12 months - These financial statements are prepared on a going concern

Core Insights - The company reported a revenue of 357 million yuan for the first half of 2025, representing a year-on-year growth of 28.72% [1] - The net profit attributable to shareholders reached 55.0386 million yuan, with a year-on-year increase of 20.28% [1] - The basic earnings per share stood at 0.1713 yuan [1] Revenue Growth - The increase in revenue was driven by a continuous rise in market share for the company's products [1] - Sales revenue from blood purification equipment showed steady growth [1] - There was a significant increase in sales revenue from self-produced blood purification consumables [1]

Investment Rating - The report assigns a "Buy-A" investment rating to the company with a 6-month target price of 22.51 CNY, compared to the current stock price of 17.86 CNY [4]. Core Insights - The blood purification industry is experiencing sustained growth, providing a solid foundation for the company's expansion. The number of chronic kidney disease patients globally reached 4.1 million in 2023, with a compound annual growth rate (CAGR) of approximately 5% over the past decade. In China, the total number of dialysis patients is expected to reach 1.02 million by 2024, with a CAGR of about 12% [1][26]. - The company's revenue from equipment is closely correlated with the demand for terminal bidding, which has shown significant recovery in 2023 after a downturn in 2024 due to industry adjustments and procurement delays. The company is expected to see a continued improvement in its financial performance starting from Q1 2025 [2][39]. - Long-term growth is supported by an increase in market share for equipment, significant contributions from consumables, and accelerated international expansion. The company has improved its market share in blood dialysis equipment to 18% in terms of volume and 17% in terms of value by mid-2025, positioning itself as a strong competitor against foreign giants [3][50]. Summary by Sections 1. Blood Purification Industry Growth - The global market for blood dialysis services and products reached 81 billion euros in 2023, with China's dialysis product market expected to approach 30 billion CNY by 2025, reflecting a steady growth trend [1][30]. 2. Short-term Catalysts - The demand for blood dialysis equipment has rebounded significantly in 2023, leading to a substantial increase in the company's revenue and profit. The recovery trend is expected to continue into 2025, driven by improved bidding conditions [2][39]. 3. Long-term Growth Drivers - The company has enhanced its market share in blood dialysis equipment, achieving a notable increase in its bidding share from 13% in 2024 to 18% in 2025. The contribution from self-produced consumables has also seen rapid growth, with a 208.15% increase in sales revenue in 2024 [3][4]. - The company's international sales reached 128 million CNY in 2024, marking a 29.74% year-on-year growth, particularly in emerging markets such as South America and Africa [9][10]. 4. Financial Projections - The company is projected to achieve revenue growth rates of 33.7%, 16.1%, and 15.2% for the years 2025 to 2027, with net profit growth rates of 126.7%, 24.6%, and 20.4% respectively, indicating strong growth potential [10][12].

Core Viewpoint - The company, Chongqing Shanwaishan Blood Purification Technology Co., Ltd., is experiencing growth in its stock price and financial performance, indicating a strong position within the blood purification equipment and services industry. Group 1: Company Overview - The main business of the company includes the research, production, and sales of blood purification equipment and consumables, as well as providing chain dialysis medical services [2] - Key products include blood perfusion machines, continuous blood purification devices, dialysis machines, and various dialysis consumables [2] - The company has received multiple national and provincial awards for its technological innovations and is recognized as a national-level innovative enterprise by the Ministry of Science and Technology [2] Group 2: Financial Performance - For the first quarter of 2025, the company reported a revenue of 189 million yuan, representing a year-on-year increase of 16.77% [2] - The net profit for the same period was approximately 37.01 million yuan, with a year-on-year growth of 8.10% [2] - The sales gross margin stood at 46.72% [2] Group 3: Market Position - As of August 15, the company's stock closed at 17.36 yuan, with a price-to-earnings (PE) ratio of 75.73, significantly higher than the industry average of 56.58 [1][3] - The total market capitalization of the company is approximately 5.578 billion yuan [1] - The company ranks 95th in terms of PE ratio within its industry, which has a median PE of 39.97 [1][3] Group 4: Shareholder Information - As of March 31, 2025, the number of shareholders increased to 7,938, with an average holding value of 352,800 yuan per shareholder [1] - The average number of shares held per shareholder is 27,600 [1]

Investment Rating - The industry investment rating is maintained at "Outperform the Market" [4] Core Viewpoints - The total bid amount for medical devices in July 2025 reached 12.643 billion yuan, representing a year-on-year increase of 20% and a cumulative total of 96.785 billion yuan from January to July, with an overall year-on-year growth of 57% [5][11] - Domestic device bidding amounts are recovering, with categories like endoscopes showing high year-on-year growth rates [6] - Imported brands experienced a slight decline in bidding amounts, but categories such as CT and DSA showed significant year-on-year growth [7] Summary by Sections Medical Device Bidding Overview - The total bidding amount for medical devices in July 2025 was 12.643 billion yuan, a 20% increase year-on-year, but a 6% decrease month-on-month [11] - From January to July 2025, the total bidding amount was 96.785 billion yuan, reflecting a 57% year-on-year increase [11] Domestic Brands - Mindray Medical's total bidding amount in July was 1.017 billion yuan, up 84% year-on-year, with a cumulative total of 5.854 billion yuan from January to July, also up 57% [15] - Aohua Endoscopy's total bidding amount in July was 68.22 million yuan, a 23% increase year-on-year, with a cumulative total of 303.27 million yuan from January to July, reflecting a 48% increase [21] - Kailing Medical's total bidding amount in July was 101 million yuan, a 67% increase year-on-year, with a cumulative total of 740 million yuan from January to July, showing a 106% increase [24] - Shanfeng's total bidding amount in July was 49 million yuan, a staggering 392% increase year-on-year, with a cumulative total of 236 million yuan from January to July, reflecting a 239% increase [27] - Wandong Medical's total bidding amount in July was 66.17 million yuan, a 19% increase year-on-year, with a cumulative total of 794.41 million yuan from January to July, showing a 95% increase [30] Imported Brands - Philips' total bidding amount in July was 467.37 million yuan, a 41% decrease year-on-year, with a cumulative total of 5.045 billion yuan from January to July, reflecting a 39% increase [33] - Siemens' total bidding amount in July was 554 million yuan, an 11% decrease year-on-year, with a cumulative total of 6.620 billion yuan from January to July, showing a 49% increase [36] - GE's total bidding amount in July was 701.17 million yuan, a 17% decrease year-on-year, with a cumulative total of 7.414 billion yuan from January to July, reflecting a 44% increase [39]

Core Viewpoint - The company, Chongqing Shanwaishan Blood Purification Technology Co., Ltd., has reported a decline in stock price and a high rolling price-to-earnings (PE) ratio compared to its industry peers, indicating potential overvaluation despite positive revenue and profit growth in the latest quarterly report [1][2]. Company Overview - The main business of the company includes the research, production, and sales of blood purification equipment and consumables, as well as providing chain blood dialysis medical services [1]. - Key products include blood perfusion machines, continuous blood purification devices, blood dialysis machines, and various blood purification consumables [1]. - The company has received multiple national and provincial awards for its technological advancements and has been recognized as a national innovative enterprise by the Ministry of Science and Technology [1]. Financial Performance - For the first quarter of 2025, the company achieved an operating income of 189 million yuan, representing a year-on-year increase of 16.77% [2]. - The net profit for the same period was approximately 37.01 million yuan, reflecting a year-on-year growth of 8.10% [2]. - The sales gross margin stood at 46.72% [2]. Market Position - As of the latest data, the company's rolling PE ratio is 74.59, significantly higher than the industry average of 55.76 and the industry median of 39.14, placing it at the 95th position among its peers [1][2]. - The total market capitalization of the company is approximately 5.494 billion yuan [1]. Institutional Holdings - As of the first quarter of 2025, there are 11 institutions holding shares in the company, all of which are funds, with a total holding of approximately 6.31 million shares valued at around 90 million yuan [1].

Core Viewpoint - The domestic medical device industry in China is accelerating its international expansion, supported by favorable policies and innovations in medical devices, leading to significant market activity and investment inflows [1][2]. Group 1: Market Performance - The largest medical device ETF in the market, $医疗器械ETF(159883)$, saw an increase of over 2%, with fund subscriptions exceeding 100 million shares and a growth of 1.48 billion shares in the past week, marking five consecutive days of net subscriptions [1]. - Notable stock performances include 一寨失7 with a rise of 19.98%, 赛诺医疗 up by 15.86%, and 中红医疗 increasing by 12.05% [1]. Group 2: Policy Support - Recent policies from seven ministries, including the Ministry of Industry and Information Technology, emphasize support for innovative medical devices, particularly in the brain-computer interface sector, aiming for significant advancements by 2027 and 2030 [2][3]. - The National Medical Insurance Administration has held discussions focused on supporting innovative medical devices, indicating a strong policy backing for the sector [2]. Group 3: Industry Growth - The Chinese medical device market is projected to exceed 1,032.8 billion yuan in 2023, maintaining its position as the second-largest globally, driven by policy support, aging population, and technological innovations [4]. - The industry is experiencing a transformation with the deepening of centralized procurement, reshaping market dynamics and promoting the development of domestic high-end medical devices [4].

Group 1 - The core viewpoint of the news highlights the performance and valuation of Chongqing Mountain Outside Mountain Blood Purification Technology Co., Ltd., indicating a recent stock price increase and a notable PE ratio [1][2] - As of August 11, the company's stock closed at 17.27 yuan, up 4.29%, with a rolling PE ratio of 75.33, marking a new low in 268 days, and a total market capitalization of 5.549 billion yuan [1] - The average PE ratio in the medical device industry is 56.56, with a median of 39.76, positioning the company at 94th in the industry ranking [1][3] Group 2 - The company specializes in the research, production, and sales of blood purification equipment and consumables, as well as providing chain blood dialysis medical services [2] - Key products include blood perfusion machines, continuous blood purification devices, and various types of dialysis machines and consumables [2] - The company has received multiple national and provincial awards for its innovations, including the National Science and Technology Progress Award [2] Group 3 - In the latest quarterly report for Q1 2025, the company achieved an operating income of 189 million yuan, representing a year-on-year increase of 16.77%, and a net profit of 37.064 million yuan, up 8.10% year-on-year, with a gross profit margin of 46.72% [2]

Group 1 - The core viewpoint of the articles highlights the performance and valuation of Chongqing Shanwaishan Blood Purification Technology Co., Ltd., particularly its stock price, market capitalization, and industry comparisons [1][2]. - As of August 8, the company's stock closed at 16.56 yuan, reflecting a 2.79% increase, with a rolling PE ratio of 72.24, marking a new low in 11 days, and a total market capitalization of 5.321 billion yuan [1]. - The average PE ratio for the medical device industry is 55.70, with a median of 39.08, positioning Shanwaishan at the 93rd rank within the industry [1][3]. Group 2 - Chongqing Shanwaishan specializes in the research, production, and sales of blood purification equipment and consumables, as well as providing chain blood dialysis medical services [2]. - The company's main products include blood perfusion machines, continuous blood purification devices, and various types of dialysis machines and consumables [2]. - In the latest quarterly report for Q1 2025, the company reported revenue of 189 million yuan, a year-on-year increase of 16.77%, and a net profit of 37.064 million yuan, reflecting a year-on-year growth of 8.10%, with a gross profit margin of 46.72% [2].

Core Viewpoint - The report details the equity changes of Chongqing Shanwaishan Blood Purification Technology Co., Ltd. due to the share reduction by major shareholders, which does not trigger a change in control or a mandatory tender offer [19][20][22]. Group 1: Shareholder Information - The equity change involves three main parties: Hunan Xiangjiang Liyuan Investment Management Co., Ltd. - Hunan Xiangjiang Dajiankang Venture Capital Partnership (Limited Partnership), Hunan Xiangjiang Liyuan Investment Management Co., Ltd. - Hunan Xiangjiang Liyuan Jiankun Venture Capital Partnership (Limited Partnership), and the original shareholder You Xinnong [19][20]. - The total shares held by these parties decreased from 18,623,449 shares (12.87% of total shares) to 32,131,623 shares (10.00% of total shares) after the reduction [22]. Group 2: Share Reduction Details - The share reduction was executed through centralized bidding transactions, with You Xinnong reducing 1,937,703 shares from June 18, 2024, to September 15, 2024, and the other two parties reducing a total of 7,276,593 shares from June 6, 2025, to August 4, 2025 [8][20][22]. - The total share capital of the company increased from 144,730,259 shares at the time of listing to 321,315,646 shares after two rounds of capital reserve transfers [7][22]. Group 3: Future Plans - The parties involved have no current plans to increase or decrease their holdings beyond the disclosed reduction plan, which allows for a maximum reduction of 12,852,625 shares, representing up to 4.00% of the total share capital [5][20]. - The report confirms that the equity change does not affect the company's controlling shareholder or actual controller [9][19].