Summary of Jiuan Medical Conference Call Company Overview - **Company**: Jiuan Medical - **Industry**: Medical Devices and Healthcare Key Points Sales and Product Performance - Sales of COVID-19 antigen test kits increased in Q3 2025, transitioning to a regular product line [2][3] - Home medical devices, such as blood pressure monitors, ranked first in sales on Amazon, indicating strong market competitiveness [2][3] Diabetes Care Initiatives - The diabetes care model has been implemented in 50 cities and over 400 hospitals in China, managing 360,000 diabetes patients [2][5] - Quarterly fees from diabetes management services are steadily increasing, improving patient control rates [2][5] - An AI team has been established to enhance diabetes care through smart interactions and data standardization [2][5][8] Financial Performance - Asset management revenue exceeded 1 billion CNY, with profits reaching 1.57 billion CNY in the first three quarters of 2025 [2][6] - The company has established a 5 billion CNY mother fund for investments in AI and technology innovation [2][6] Clinical Trials and Product Development - Clinical trials for continuous glucose monitors (CGM) are set to begin in Q4 2025 in China, with plans for the U.S. market to follow [2][8][12] - R&D investments in AIoT focus on building AI teams and CGM development, aiming to enhance diabetes care efficiency [2][8] Asset Allocation Strategy - The company maintains a diversified asset allocation strategy, including U.S. Treasury bonds, corporate credit bonds, and equities, targeting an annual compound return of around 8% [4][10] - The actual return for 2024 is projected at approximately 9%, with a target range of 6% to 10% for 2025 [4][10] Market Expansion and Competition - Jiuan Medical is preparing for U.S. market entry with a focus on patent protection and competitive strategies [11] - The company has built a significant patient flow through existing brand products, laying the groundwork for future product launches [11] New Product Launches - The company is developing a four-in-one respiratory test product, currently in clinical trials, with plans to leverage the iHealth brand for more OTC products in the U.S. market [19][20] Future Growth and Strategic Goals - Core strategies include expanding product offerings in the U.S. and promoting diabetes care services with AI technology [20][21] - The company aims to achieve profitability in its diabetes care business, targeting 1,000 CNY per patient annually in China and 1,000 USD in the U.S. [16] New Retail Business - The new retail business unit is not a strategic focus but must achieve profitability, currently contributing a low single-digit percentage to overall revenue [17] AI Development and Applications - Increased R&D investment in AI over the past two years, primarily focused on diabetes management [18] Geopolitical Considerations - The company has adopted a dual strategy for production in response to geopolitical uncertainties, with manufacturing in Los Angeles and outsourcing in Vietnam to mitigate tariff impacts [15][16] Additional Insights - The company is exploring AI applications beyond diabetes management, aiming to enhance overall healthcare efficiency [18]

Summary of the Conference Call for 九安医疗 Company Overview - **Company**: 九安医疗 (Jiuan Medical) - **Industry**: Medical Devices and Healthcare Key Financial Performance - **2024 Profit**: Increased by 33% to 1.668 billion CNY, primarily driven by asset management business [2][3] - **2025 Q1 Revenue**: Decreased by 34.5% to 500 million CNY due to reduced U.S. orders, but profit remained stable at 266 million CNY [2][3] - **Net Assets**: Increased to 21.4 billion CNY by the end of Q1 2025, up approximately 700 million CNY from the previous year [5] Strategic Initiatives - **Production Shift**: Gradually transferring production to Vietnam to meet U.S. market demand, with Mexico being evaluated as an alternative [2][6][7] - **CGM Product Development**: Continuous Glucose Monitoring (CGM) product clinical trials expected to start in May 2025, with a focus on U.S. market approval [2][8] - **AI Integration**: Actively applying AI technology in chronic disease management, aiming to develop a comprehensive home healthcare system [2][9][10] Market Positioning - **U.S. Market Focus**: Prioritizing CGM product approvals in China, the U.S., and Europe, with the U.S. market potential estimated at 5 billion USD annually [2][8] - **Home Testing Products**: Launched a combined testing product for COVID-19, influenza A, and B in the U.S., with plans for more home disease testing products [2][10] Risk Management and Adaptation - **Tariff Impact**: Significant impact from U.S.-China tariffs, leading to inventory strategies and production agreements with Vietnamese factories [2][6] - **Asset Management Strategy**: Diversified asset allocation strategy targeting a minimum annual return of 6%, with fixed income assets comprising 65.2% of the portfolio [4][20] R&D and Future Investments - **R&D Spending**: Expected increase in R&D expenses focused on AI technology, CGM, and AI smart hearing aids [4][12] - **Chronic Disease Management**: Plans to enhance diabetes care services through AI, targeting over 1,000 hospitals [27] Product Development and Market Trends - **AI Smart Hearing Aids**: Currently in development, with expected registration preparations by late 2025 or early 2026 [23][24] - **Respiratory Testing Products**: Continuous demand expected for respiratory testing products, with historical data analysis guiding demand forecasting [4][11] Strategic Partnerships and Collaborations - **Collaboration with Xiaomi**: Ongoing partnership despite Xiaomi's divestment from certain assets, maintaining a focus on new retail and health product launches [21][22] Stock Buyback and Market Confidence - **Stock Buyback Plans**: Significant buyback activity since 2020, with a commitment to continue repurchasing shares to enhance shareholder value [28] Future Outlook - **Strategic Vision**: Focus on leveraging iHealth brand in the U.S. for product expansion, enhancing diabetes care, and investing in innovative technologies [29]