Financial Data and Key Metrics Changes - Revenue increased by 12.2% to $75.7 million, driven by growth across both med-tech and med-device segments [12][21] - Gross margin for Q1 FY26 was 55.3%, a 90 basis point increase from the previous year [17] - Adjusted net loss for Q1 FY26 was $4.2 million, improving from a loss of $4.4 million in the same quarter last year [19] Business Line Data and Key Metrics Changes - Med-tech revenue was $35.3 million, a 26.1% increase, while med-device revenue was $40.4 million, an increase of 2.3% [13] - Auryon platform contributed $16.5 million in revenue, growing 20.1% year-over-year [15] - Mechanical thrombectomy revenue increased by 41.2% year-over-year, with AngioVac revenue at $8 million (37.1% increase) and AlphaVac revenue at $3.3 million (52.3% increase) [16] Market Data and Key Metrics Changes - Med-tech platforms comprised 47% of total revenue, up from 41% a year ago, illustrating the strategy to increase revenue from this segment [14] - The annual revenue of the med-tech segment grew from $41 million in 2020 to $127 million in 2025, representing a compound annual growth rate of 25% [15] Company Strategy and Development Direction - The company is focused on growing its med-tech segment, particularly through innovative products like Auryon and NanoKnife, which are expected to drive future growth [5][7] - Continued investment in R&D initiatives is planned to support long-term growth, targeting approximately 10% of sales [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the med-tech segment, particularly in mechanical thrombectomy and NanoKnife, with expectations for continued strong performance [26][27] - The company anticipates being cash flow positive for the current fiscal year, with significant cash generation expected in Q4 [20] Other Important Information - The company expects net sales for FY26 to be in the range of $308 to $313 million, an increase from previous guidance [21] - Tariff expenses for FY26 are estimated to be between $4 and $6 million [18] Q&A Session Summary Question: Guidance on growth drivers - The increase in guidance is primarily driven by mechanical thrombectomy and NanoKnife segments, with expectations for continued growth in these areas [25][26] Question: Update on mechanical thrombectomy hospital penetration - There has been good uptake in hospitals, with ongoing efforts to convert accounts into value analysis committee approvals [31][32] Question: Revenue growth attributable to price increases - Revenue growth is driven by a combination of price increases, new customer acquisitions, and increased utilization [38][39] Question: Update on clinical trials for Ambition BTK - The Ambition BTK study is progressing well, with enrollment in both RCT and registry segments, expected to significantly impact the Auryon business [40][41]

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 58.85 [1][5]. Core Insights - The company's revenue, net profit attributable to the parent, and net profit excluding non-recurring items for 1H25 were RMB 46.59 billion, RMB 12.03 billion, and RMB 9.14 billion, respectively, showing year-on-year growth of +8.2%, +7.4%, and -5.2% [1]. - The overseas business is experiencing rapid growth, contributing significantly to the company's performance, with overseas revenue reaching RMB 6.07 billion, a year-on-year increase of +26.6%, accounting for 13.0% of total revenue [2]. - The core business segments are showing varied performance, with the respiratory and oxygen segment achieving revenue of RMB 16.74 billion (+1.9% YoY), and the blood glucose and POCT segment growing by +20.0% YoY [2]. - The emergency segment saw a significant revenue increase of +30.5% YoY, while the clinical instruments and rehabilitation business remained stable with a +3.3% YoY growth [3]. - The company has increased its sales expense ratio to 17.44%, reflecting ongoing investments in market expansion [4]. Financial Projections - The company forecasts net profits attributable to the parent for 2025-2027 to be RMB 19.6 billion, RMB 22.7 billion, and RMB 26.2 billion, representing year-on-year growth of +8.8%, +15.5%, and +15.3%, respectively [5]. - The projected EPS for the same period is RMB 1.96, RMB 2.26, and RMB 2.61 [5]. - The company maintains a gross margin of 50.37%, which has slightly improved by +0.30 percentage points year-on-year [4].

Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [2][4][23]. Core Insights - The company reported a revenue of 4.264 billion yuan in 2024, reflecting a growth of 3.32%, while the net profit attributable to shareholders increased significantly by 94.14% to 385 million yuan [2][4]. - In Q1 2025, the company achieved a revenue of 992 million yuan, a year-on-year increase of 2.87%, but the net profit decreased by 30.19% to 51 million yuan [2][4]. - The company has expanded its distribution channels, covering nearly 9,000 hospitals across China and achieving a 99% coverage rate in the top 100 chain pharmacies [8]. Financial Performance Summary - **2024 Financials**: Total revenue was 4.264 billion yuan, with a net profit of 385 million yuan. The core business revenue, excluding isolation protective products, grew by 15.80% [4][8]. - **2025 Projections**: Expected revenue growth of 12.6% to 4.8 billion yuan, with net profit projected to reach 439 million yuan, a 14% increase [4][9]. - **Earnings Per Share (EPS)**: Projected EPS for 2025 is 1.65 yuan, with a price-to-earnings (P/E) ratio of 12 [4][9]. Market Expansion - The company has seen robust growth in both domestic and international markets, with overseas revenue reaching 2.475 billion yuan in 2024, a 14.64% increase [8]. - The company has established an international marketing center and is making inroads into North and South American markets [8]. Investment Recommendations - The report adjusts the net profit forecast for 2025-2027 to 440 million, 510 million, and 590 million yuan respectively, with corresponding P/E ratios of 12, 10, and 9 [8][9]. - A discounted cash flow (DCF) model estimates the company's overall valuation at 7.5 billion yuan, leading to a target price of approximately 28 yuan per share [8].