Core Insights - The company reported a significant increase in revenue and profit for the first half of 2025, with total revenue reaching 357 million yuan, a year-on-year growth of 28.72%, and a net profit of 55.04 million yuan, up 20.28% [1][2] - The company emphasizes innovation and has increased R&D investment by 37.12% to 36.51 million yuan, leading to advancements in key technologies and maintaining its position as a leader in the blood purification industry [2][3] Financial Performance - The company achieved a net cash flow from operating activities of 68.45 million yuan, reflecting a substantial increase of 149.50% year-on-year [1] - The basic earnings per share for the first half of the year stood at 0.17 yuan [1] Market Position and Strategy - The company has successfully implemented a dual-engine development strategy focusing on both equipment and consumables, resulting in a 25.15% increase in domestic revenue to 270 million yuan [2] - The market share for CRRT equipment reached 20.42% and for blood dialysis machines 15.29%, both leading among domestic brands, indicating strong competitive positioning [2] Product Development and Innovation - The company has made significant progress in R&D, with 62 patents obtained, including 6 international patents, and has participated in the formulation of multiple national and industry standards [2] - New product developments include advanced blood dialysis machines and high-performance dialysis filters, further solidifying the company's technological leadership [2] Consumables Business Growth - The consumables segment saw revenue growth of 46.17% to 85.34 million yuan, with self-produced consumables revenue increasing by 91.90% [3] - An independent sales team has been established to enhance the synergy between equipment and consumables, focusing on public hospital coverage and strategic partnerships with medical groups [3] International Expansion - The company has accelerated its international market presence, achieving overseas revenue of 86.82 million yuan, a growth of 41.30%, and covering over 100 countries and regions [3] - The company has obtained 22 new overseas product registration certificates and achieved EU MDR certification for key products, indicating successful international compliance and market entry [3]

Summary of Conference Call on Mountain Outside Mountain (山外山) Industry Overview - The domestic blood purification industry has significant growth potential, with a continuous increase in patient numbers. The current domestic replacement rate for imported products has room for improvement, benefiting companies like Mountain Outside Mountain and Weigao Xuejing [2][4]. - Approximately 900,000 blood dialysis patients exist in China, with an annual increase of about 100,000. If aligned with developed countries, the future patient count could reach 3 million, indicating substantial market growth potential [4][22]. Company Position and Competitive Advantages - Mountain Outside Mountain is a leading enterprise in the domestic blood purification field, with a comprehensive layout across the upstream, midstream, and downstream of the blood dialysis industry chain. Despite fluctuations in revenue and profit in recent years, the company's market share and product approval status remain stable [3]. - The company has advantages in both equipment and consumables, with a full range of self-owned consumables. The partnership with Swiss Dialife to produce the Delaif dialysis machine, utilizing steam sterilization technology, enhances product quality and market competitiveness [5][8]. - The management team is stable, with founder Gao Guangyong holding a 24% stake and being a core technical figure, contributing to the company's strong competitive edge in blood purification [8]. Financial Performance and Growth Projections - Revenue and profit are expected to maintain a compound annual growth rate (CAGR) of around 30% over the next three years. Currently, 70% of revenue comes from equipment, 20% from consumables, and 10% from medical services [7]. - Despite a downturn in 2024 due to public health events and medical corruption, a significant recovery is anticipated in 2025, driven by better-than-expected equipment procurement data and consumable hospital admission rates [7]. International Market Expansion - The company has actively expanded into overseas markets, with significant sales growth in Brazil, Russia, and Southeast Asia. Although overseas revenue currently represents a small proportion, it has shown remarkable growth, with a 91% year-on-year increase in 2023 and a projected 30% increase in 2024 [6][18]. - Mountain Outside Mountain exports to nearly 90 countries, achieving thousands of installations and serving hundreds of thousands of kidney disease patients globally [18]. Regulatory and Policy Impact - Recent policies have promoted the development of the domestic blood dialysis industry and domestic substitution. For instance, new equipment configuration standards for county-level hospitals have driven demand for related devices and consumables [14]. - The collective procurement policy initiated in 2020 has led to significant price reductions, with an average drop of 53% across 23 provinces in 2024, which has a relatively minor impact on the company's ex-factory prices [15]. Valuation and Investment Potential - The company's current valuation is considered low, with steady improvements in gross margin, net profit margin, and operating profit margin over the past five years. This positions Mountain Outside Mountain as a company with good long-term investment value [9][20]. - The company’s revenue recognition method, which confirms income after terminal installations, alleviates inventory pressure from distributors, allowing for rapid performance reflection in financial statements once bidding data improves [21]. Conclusion - The blood purification industry presents a long-term growth trajectory, with Mountain Outside Mountain positioned as a leader in both equipment and consumables. The company’s international business, currently at 15% of total revenue, has significant growth potential, further catalyzing long-term performance [22].

Core Viewpoint - The company, Shanwaishan, is experiencing growth in its blood purification equipment sales and is well-positioned in the expanding domestic blood dialysis market due to increasing ESRD patient numbers and supportive government policies [2][3][5]. Industry Overview - The number of ESRD patients in China increased from 3.025 million in 2019 to 4.126 million in 2023, with a compound growth rate (CGR) of 8.1%, which is significantly higher than the global growth rate of 5.1% [2]. - The percentage of ESRD patients receiving dialysis treatment in China is approximately 26%, which is below the global average of 37% and significantly lower than the average of 75% in developed countries, indicating substantial market potential for blood dialysis services [2]. Company Performance - In Q1 2025, Shanwaishan's blood purification equipment achieved revenue of 127.49 million yuan, with strong growth in both domestic and international markets [3]. - The company's blood purification consumables generated revenue of 43.26 million yuan in Q1 2025, with a year-on-year growth of 123.46% [5][6]. - The medical services segment reported revenue of 16.27 million yuan in Q1 2025, reflecting a year-on-year increase of 43.52% [6]. Competitive Advantages - Shanwaishan maintains a strong competitive edge through technological innovation, product quality, brand influence, and rapid service response [4]. - The company has established a national-level technology innovation platform and a comprehensive quality management system, ensuring product safety and reliability [4]. - As the only Sci-Tech Innovation Board listed company in the blood purification industry, Shanwaishan's brand recognition is increasing, enhancing market trust and acceptance [4]. Market Trends and Policies - The Chinese government is promoting policies to enhance the efficiency of medical equipment funding and reduce financing costs for equipment updates, which is expected to increase demand for blood dialysis equipment in hospitals [5][6]. - The company is actively monitoring and participating in the implementation of relevant procurement policies to capitalize on market opportunities [6].

本报讯 （记者冯雨瑶）4月21日晚间，重庆山外山血液净化技术股份有限公司（简称"山外山"）披露了 2025年第一季度业绩报告，报告期内，公司实现营业收入1.89亿元，同比增长16.77%；归属于上市公司 股东的净利润3700.64万元，同比增长8.10%。公司经营活动产生的现金流量净额为1542.86万元，同比 增长4614.07%。 公告显示，公司作为国产血液净化设备的龙头企业，一季度营业收入增长主要依托技术领先优势和强大 的品牌效应，产品市场占有率持续提升，推动了血液净化设备销售收入的稳步增长。此外，公司自产的 血液净化耗材销售收入占比大幅提升。 山外山是集血液净化设备、血液净化耗材、血透中心智能管理系统和连锁血液透析中心于一体的国家高 新技术企业，为全球肾脏病和危重症患者提供血液净化整体解决方案，属于医疗器械的血液净化细分领 域。 （文章来源：证券日报） 2024年，公司坚持以自主创新作为企业发展的核心动力，从整机系统到核心部件、关键元器件，从设备 到耗材，公司逐步完善了纵向和横向的产业链布局。 2024年，公司坚持国内外市场双轮驱动，设备和耗材的双引擎发展战略。在国内市场方面，公司进一步 加大了血液净 ...

Company Overview - Chongqing Shanwaishan Blood Purification Technology Co., Ltd. specializes in the research, production, and sales of blood purification equipment and consumables, as well as providing chain blood dialysis medical services [2] - The main products include blood purification devices and consumables, primarily used for treating acute and chronic renal failure, uremia, multiple organ failure, and poisoning [2] - The company has received multiple national and departmental awards, including the National Information Industry Major Technological Invention Award and has been recognized as a national-level innovative enterprise [2] Financial Performance - For the third quarter of 2024, the company reported a revenue of 418 million yuan, a year-on-year decrease of 27.39% [2] - The net profit for the same period was 61.94 million yuan, reflecting a year-on-year decline of 65.89% [2] - The sales gross margin stood at 47.54% [2] Market Position - As of April 2, the company's stock closed at 11.78 yuan, down 1.67%, with a rolling price-to-earnings (PE) ratio of 51.11 times [1] - The average PE ratio in the medical device industry is 46.88 times, with a median of 33.67 times, placing Shanwaishan at the 91st position in the industry ranking [1][3] - A total of 85 institutions hold shares in Shanwaishan, with a combined holding of 21.34 million shares valued at 238 million yuan [1]

Company Overview - Chongqing Shanwaishan Blood Purification Technology Co., Ltd. specializes in the research, production, and sales of blood purification equipment and consumables, as well as providing chain dialysis medical services [2] - The main products include blood purification devices and consumables, primarily used for treating acute and chronic renal failure, uremia, multi-organ failure, and poisoning [2] - The company has received multiple national and departmental awards, including the National Information Industry Major Technological Invention Award and has been recognized as a national-level innovative enterprise [2] Financial Performance - As of the latest Q3 2024 report, the company achieved a revenue of 418 million yuan, representing a year-on-year decrease of 27.39% [2] - The net profit for the same period was 61.94 million yuan, down 65.89% year-on-year, with a sales gross margin of 47.54% [2] Market Position - The company's stock closed at 11.98 yuan, up 6.68%, with a rolling price-to-earnings (PE) ratio of 51.97, marking a new low in 66 days [1] - The average PE ratio in the medical device industry is 46.46, with a median of 33.07, placing Shanwaishan at the 91st position in the industry ranking [1][3] - A total of 85 institutions hold shares in Shanwaishan, with a combined holding of 21.34 million shares valued at 238 million yuan [1]