Summary of the Conference Call Record Company Overview - **Company Name**: 德美医疗 (Demei Medical) - **Industry Focus**: Specializes in "Sports Medicine + Sports Health" as a technology-driven enterprise - **Business Scope**: Covers the entire chain from "preoperative prevention to surgical treatment to postoperative rehabilitation" - **Product Range**: 1. Sports medicine implants 2. Surgical tools 3. Arthroscopic equipment 4. Sports rehabilitation devices and equipment 5. Research, production, sales, and services - **Industry Position**: Leading enterprise in the domestic industry - **Procurement Qualification**: Selected for the National High-Value Medical Consumables Procurement Group A [1] Acquisition Details - **Valuation of Target Company**: Expected to be no more than RMB 1 billion - **Final Transaction Price**: To be determined based on asset appraisal report and due diligence results - **Acquisition Stake**: At least 51% equity - **Acquisition Goal**: To gain control of the target company [1] Financial Performance (Last Three Years) - **Revenue Growth**: - 2023: RMB 178 million - 2024: RMB 236 million - 2025: RMB 286 million - **Net Profit (Adjusted)**: - 2023: Loss of RMB 7.08 million - 2024: Profit of RMB 9.29 million - 2025: Profit of RMB 23.60 million [1]

Core Viewpoint - Aibo Medical announced plans to acquire at least 51% of Demai Medical, with an estimated valuation of the target company not exceeding 1 billion yuan [1] Company Summary - Demai Medical, founded in July 2016, has a registered capital of over 12.14 million yuan and is controlled by its founder and major shareholder, Li Jianbo, who holds 14.7994% of the shares [1] - The company has a strategic focus on the entire spectrum of sports health, including pre-surgery prevention, surgical treatment, and post-surgery rehabilitation, and operates as an international medical technology group [1][2] - As of the announcement date, Demai Medical has 276 authorized patents and has obtained various medical device registrations, including 34 Class III, 48 Class II, and 63 Class I medical device registration certificates [2] Industry Summary - The domestic sports medicine market is currently dominated by international brands, which hold approximately 80% market share, with major players including Stryker, Johnson & Johnson, and Arthrex [5] - The market size for sports medicine in China is projected to reach 8-10 billion yuan in 2025, with a compound annual growth rate of about 15%-20% [5] - The inclusion of sports-related injury implants in the national procurement plan in 2024 is expected to create opportunities for domestic companies to expand their market share and enhance industry influence [2] Financial Summary - As of the end of 2025, Demai Medical's total assets are projected to be 425 million yuan, with total liabilities of 160 million yuan and equity of 260 million yuan [3] - The expected revenue for 2025 is 286 million yuan, with an adjusted net profit of approximately 35.02 million yuan [3]