Core Viewpoint - Tongce Medical (600763.SH) is experiencing slow growth in operating performance, with a slight increase in revenue and net profit in the first half of 2025 compared to the previous year [1][5]. Financial Performance - In the first half of 2025, Tongce Medical achieved operating revenue of 1.448 billion yuan, a year-on-year increase of 2.68%, and a net profit attributable to shareholders of 321 million yuan, up 3.67% from the previous year [1][5]. - The company's revenue and net profit have shown continuous single-digit growth since mid-2022, indicating a trend of weak growth [2][9]. - The second quarter of 2025 saw a decline in both revenue and net profit compared to the first quarter, with a notable negative growth in non-recurring net profit [10]. Market Position and Expansion Efforts - Tongce Medical is actively pursuing acquisitions to expand its market presence beyond Zhejiang province, where over 90% of its revenue still comes from [3][14]. - The company has made several acquisitions, including a 100% stake in Haiyin Technology and is in the process of acquiring Shanghai Congji Dental Clinic for 46 million yuan [2][12]. - Despite these efforts, the performance outside Zhejiang remains weak, with revenue from outside the province accounting for less than 10% of total revenue [14][15]. Historical Context - Tongce Medical, known as "Yamei," has shown strong growth since its listing in 2007, but growth has slowed significantly since 2022 [6][8]. - The company reported revenues of 2.719 billion yuan, 2.847 billion yuan, and 2.874 billion yuan from 2022 to 2024, with year-on-year changes of -2.23%, 4.70%, and 0.96% respectively [8]. Market Sentiment - The stock price of Tongce Medical has dropped over 80% from its peak of 421.99 yuan per share in June 2021 to 46.74 yuan per share as of August 22, 2025, indicating a lack of confidence in its recovery [3][15]. - Recent reductions in holdings by institutional investors such as the Stock Connect and China Universal Asset Management suggest a cautious outlook on the company's future performance [4][16].