Core Viewpoint - The announcement by Sanxin Medical highlights the impact of regional centralized procurement on the blood dialysis product market, indicating a trend towards nationwide coverage and price linkage effects [2]. Group 1: Centralized Procurement Impact - Since 2019, certain provinces have initiated centralized procurement for blood dialysis products, which is set to expand with the implementation of the "23 provinces" and "Beijing-Tianjin-Hebei 3+N" centralized procurement plans by 2024 [2]. - The centralized procurement has established a framework that allows for the extension of procurement periods based on actual supply and demand conditions, which benefits the stable sales channels for the company's products [2]. Group 2: Competitive Landscape - The competitive strategy and supply capabilities of companies are crucial in the context of blood dialysis centralized procurement, particularly for blood dialysis machines [2]. - In the centralized procurement for the 23 provinces, domestic and imported products are grouped together for bidding, which enhances the competitive advantage of domestic dialysis machines and expands their market space [2].

Core Viewpoint - Sanxin Medical announced the expansion of centralized procurement for blood dialysis products, indicating a significant shift towards nationwide coverage and enhanced market stability for domestic manufacturers [2] Group 1: Centralized Procurement - Since 2019, certain provinces have initiated centralized procurement for blood dialysis products, with the upcoming implementation of centralized procurement in "twenty-three provinces" and the "Beijing-Tianjin-Hebei 3+N" region by 2024 [2] - The centralized procurement scope has nearly achieved nationwide coverage, which is expected to solidify the market position of leading companies [2] Group 2: Impact on Market Dynamics - The procurement documents stipulate that the execution period for centralized procurement is at least one year, with the possibility of extension based on actual procurement and supply conditions, which will help ensure stable sales channels for the company's products [2] - The competitive pricing strategy and supply capabilities of companies are crucial in the context of blood dialysis centralized procurement, particularly for domestic dialysis machines, which have shown a competitive advantage over imported products [2]

Summary of the Conference Call for Sanxin Medical Company Overview - **Company**: Sanxin Medical - **Industry**: Blood purification and dialysis products Key Points Financial Performance - In the first half of 2025, Sanxin Medical achieved revenue of 760 million yuan, a year-on-year increase of 10.83% [4] - Net profit attributable to shareholders was 115 million yuan, up 8.35% year-on-year [4] - Blood purification products contributed 626 million yuan in revenue, growing 20% and accounting for 82% of total revenue [4] - Revenue from drug delivery devices decreased by 15% year-on-year, totaling 82.4 million yuan [4] Market Expansion - Export revenue in the first half of 2025 reached 187 million yuan, a 67% increase year-on-year, with dialysis equipment and consumables making up 88% of exports [4][2] - The company is focusing on expanding into Southeast Asia, with plans to enter markets in Brazil, Turkey, and India [2][5] Product Development and Strategy - Sanxin Medical plans to issue convertible bonds to improve asset structure and expand production capacity, with approximately 4 billion yuan allocated for production expansion and 1.3 billion yuan for working capital [6] - The company aims to increase market share through capacity expansion and the promotion of new products like wet membrane dialyzers [3][21] Domestic Market Dynamics - The company’s market share for dialysis devices increased to approximately 8%, with device revenue growing about 70% year-on-year [7] - The number of patients receiving standardized blood dialysis treatment reached 1.027 million, with an expected growth rate of over 10% in the future [11] - The National Medical Insurance Administration's reforms have positively impacted the industry, enhancing patient and hospital engagement [12] Competitive Landscape - Sanxin Medical's market share for dialysis devices has grown from 5-6% to around 8%, driven by increased domestic production and market reshuffling [16] - The company faces challenges from price reductions due to centralized procurement and increased competition [21] Future Outlook - The company expects a revenue growth of around 10% for the full year 2025, despite pressures from centralized procurement and competition [3][21] - New product launches, including artificial blood vessels and wet membrane dialyzers, are planned for the second half of the year [6][10] International Market Insights - The company has gained market access in Indonesia, Mexico, and Peru, with plans for further expansion in Brazil, India, Vietnam, and Turkey [8] - The majority of exports are concentrated in Southeast Asia, with ASEAN countries accounting for nearly 70% of total exports [13] Regulatory and Policy Impact - The introduction of the CA deduction project by the National Medical Insurance Bureau is expected to create a favorable environment for the industry’s long-term development [12] Shareholder Returns - Sanxin Medical has proposed a mid-year dividend plan, aiming for a dividend payout ratio of 70% for the year [25] Conclusion - Sanxin Medical is positioned for growth in the blood purification sector, with a focus on expanding its product line and market presence while navigating challenges from competition and regulatory changes [25]

Group 1 - The company announced adjustments to the proposed investment amount and internal investment structure of the raised funds to ensure the smooth implementation of fundraising projects and improve the efficiency of fund usage [1][2][5] - The total amount raised from the initial public offering was RMB 1,090.1943 million, with a net amount of RMB 977.8911 million after deducting various issuance costs [1][2][25] - The company established a special account for the management and use of raised funds, which have been fully deposited in the account approved by the board of directors [1][25] Group 2 - The company adjusted the internal investment structure of the "Dialyzer (Ganzhou) Production Project" to prioritize construction costs over equipment purchases, ensuring efficient use of funds [3][5] - The adjustments will not change the total investment amount for the project, and the company plans to use self-raised funds for future equipment purchases as needed [3][5] Group 3 - The adjustments made by the company are based on actual fundraising conditions and business strategy, ensuring compliance with regulations and protecting shareholder interests [5][7][9] - The board of directors and the supervisory board approved the adjustments during meetings held on May 27, 2025, without the need for shareholder approval [6][17][41] Group 4 - The company plans to use up to RMB 170 million of the raised funds to increase capital in its wholly-owned subsidiary, Ganzhou Blood Purification Products Co., Ltd., to support the implementation of the fundraising project [12][13][14] - The increase in capital will be based on the funding needs of the subsidiary and will be executed within the approved limit [13][14] Group 5 - The company intends to use temporarily idle raised funds for cash management, with a maximum amount of RMB 740 million, to enhance fund efficiency and increase returns for shareholders [22][23][24] - The cash management will involve purchasing low-risk, liquid principal-protected products, ensuring that it does not affect the construction of fundraising projects [23][27][34] Group 6 - The company will replace self-raised funds previously invested in fundraising projects and paid issuance costs with raised funds, totaling RMB 27.67426 million [62][64][67] - This replacement will not affect the normal implementation of fundraising projects and complies with relevant regulations [67][69]

威高血净：使用募集资金置换2.77亿元自筹资金 金十数据5月27日讯，威高血净公告，公司于2025年5月27日召开董事会和监事会，审议通过使用募集资 金置换预先投入募投项目及已支付发行费用的自筹资金。置换金额包括募投项目2.4亿元和发行费用 3663.52万元，合计2.77亿元。募集资金总额为10.9亿元，净额为9.78亿元，募投项目包括威高血液净化 智能化生产建设项目、透析器（赣州）生产建设项目等。募集资金已存放于专项账户，公司将进行等额 置换。 ...

Financial Performance - In Q1 2025, the company's operating revenue was 247,732,813.14 CNY, a decrease of 7.17% compared to the same period last year [5] - The net profit attributable to shareholders was 14,448,489.46 CNY, showing a significant increase of 298.35% year-on-year [5] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 338,833.92 CNY, up 105.49% from the previous year [5] - Basic earnings per share reached 0.0546 CNY, reflecting a year-on-year growth of 298.54% [5] Market and Policy Impact - The implementation of new policies, such as the "Action Plan for Promoting Large-Scale Equipment Updates and Consumer Goods Replacement," is expected to positively impact the company's monitoring and dialysis product lines [2] - Increased demand for monitoring equipment is anticipated due to the policy-driven replacement of outdated devices in public hospitals and grassroots medical institutions [2] - The company aims to leverage these policies to enhance market share through product upgrades and expanded marketing efforts [2] Industry Trends - The blood dialysis market is projected to experience increased competition over the next 3-5 years, with market concentration expected to rise as leading companies consolidate their positions [3] - Technological advancements, such as home dialysis and smart monitoring, are anticipated to become new growth points, favoring early adopters [4] - The emergence of new markets, particularly in China and India, is expected to challenge international giants as local companies offer competitive pricing [4] Product Development and Innovation - The company plans to focus on developing intelligent medical devices that address clinical needs, with an emphasis on innovative solutions in the renal care sector [5] - New products, including a polypropylene blood dialysis device and specialized dialysis solutions, are set to be launched in 2024 [4] - The company is also working on a new CRRT machine that will integrate with its overall life support solutions [5] Revenue Breakdown - In 2024, the life information and support segment generated sales revenue of 243,502,800 CNY, accounting for approximately 23% of total revenue [6] - The renal medical segment achieved sales revenue of 804,300,500 CNY, representing about 76% of total revenue [6] Strategic Focus for 2025 - The company will concentrate on its two main business areas, aiming to capitalize on opportunities from medical infrastructure expansion and domestic product substitution [8] - Plans include enhancing the penetration of high-margin products in critical care and surgical anesthesia [8] - The company will also strengthen its supply chain and production efficiency to align with procurement policies and improve overall operational effectiveness [8]