Summary of the Conference Call for Meihao Medical Company Overview - **Company**: Meihao Medical - **Industry**: Medical Devices and Healthcare Key Points and Arguments Strategic Investments and Financial Performance - Meihao Medical is strategically investing in disease prevention and in vitro diagnostics, which is putting short-term financial pressure on the company but is expected to enhance long-term competitiveness [2][3] - The adjusted net profit decreased by 25.46% year-on-year to 126 million yuan, reflecting challenges during the transformation period [2][3] Business Segment Performance - The home respiratory machine and cochlear implant businesses experienced slight declines due to tariff wars and rare earth regulations, while the home and consumer electronics components business grew by 35.69% [2][4] - Other medical product components saw a significant increase of 54.41%, indicating progress in business diversification [2][5] Global Trade and Supply Chain Strategies - The company is actively responding to changes in the global trade landscape by implementing strategies such as global supply chain layout, talent development, technology capability enhancement, and digital platform construction [2][6] - Meihao Medical's cash flow is sufficient, and there may be further acquisition plans to enhance market competitiveness and expand business areas [2][8] Production Capacity and Future Plans - The third phase of the production base in Malaysia is expected to be completed and operational by the end of 2025, with capacity planning adjusted according to customer orders [2][7][9] - The company plans to invest 80 million USD in the third phase, aiming to match domestic capacity and focusing on high-growth, high-tech barrier segments such as cardiovascular and blood glucose management [2][9][10] M&A Strategy - Meihao Medical's M&A strategy focuses on high-growth, high-tech barrier segments, considering factors such as customers, technology, talent, and geographical location [2][10] - The company has established a strategic and investment department to enhance its international perspective and resource integration capabilities [2][10] Product Development and Market Position - The insulin pen market is maturing, with the company achieving significant sales and preparing for future deliveries [2][13] - In the GLP-1 drug sector, the company has developed three main types of injection pens, with technology solutions now mature [2][14] Challenges and Competitive Landscape - The company faces intense price competition in the blood glucose sector, which may impact profit margins, but it aims to optimize cost structures and improve production efficiency [2][15] - The CGM (Continuous Glucose Monitoring) business has seen significant growth, with expectations for further market disclosure as customer progress continues [2][16][17] R&D and Future Growth - R&D expenses account for approximately 9% of revenue, with plans to maintain this level to support future growth [2][36] - The company aims to expand its international supply chain advantages and introduce new products to create a second growth curve [2][37] Stock and Shareholder Management - Meihao Medical is preparing for a significant unlock of shares in October 2025, with expectations that the impact of potential sell-offs will be limited due to the structure of its shareholder base [2][20] Conclusion - Meihao Medical is navigating a complex landscape of strategic investments, market challenges, and growth opportunities, with a focus on long-term sustainability and competitiveness in the medical device industry [2][37]