Core Viewpoint - Aide Technology (Suzhou Aide Technology Development Co., Ltd.) is facing significant challenges on its path to IPO, including the impact of centralized procurement policies, financial internal control issues, and high ownership concentration by its actual controllers [1] Group 1: Financial Performance - The company's main products, spinal and trauma consumables, have been fully included in the national centralized procurement scope, leading to a sharp decline in sales revenue from 137 million yuan in 2022 to 84 million yuan in 2024, a decrease of 38.7% [1] - The prices of key products have experienced drastic reductions: the price of the vertebroplasty system dropped from 478.65 yuan in 2022 to 176.45 yuan in 2024, a decline of 63%; spinal implant products decreased from 193.08 yuan to 98.62 yuan, nearly a 50% drop; and bone cement prices fell from 475.74 yuan to 240.74 yuan, also nearly a 50% decrease [1] - In 2024, the company reported a revenue of 275 million yuan, a year-on-year increase of 4.87%, and a net profit attributable to shareholders of 67.16 million yuan, up 5.60% year-on-year, primarily driven by increased sales volume despite significant price reductions impacting gross margins [1] Group 2: Sales and Distribution Model - The company's sales model heavily relies on distributors, with revenue from this model accounting for 97.71%, 94.07%, 87.08%, and 83.85% over the reporting periods, significantly higher than comparable companies in the industry [2] - There are discrepancies in sales data reported to different regulatory bodies, with significant differences in sales prices to the same distributor, raising concerns about the reliability of information disclosure [2] Group 3: Distributor Issues - A significant portion of revenue comes from distributors with questionable legitimacy, including those established after the start of their cooperation and those with very low or zero registered capital [3] - In 2022 and 2023, revenue from canceled distributors accounted for 14.87% and 6.42% of total revenue, respectively, raising doubts about the authenticity and accuracy of revenue recognition [3] Group 4: Ownership and Governance - The actual controllers, Lu Qiang and Huang Meiyu, hold a combined 79.07% of the company's shares, leading to concerns about potential risks associated with concentrated control and its impact on minority shareholders [3] - The company has a high dependency on key executive Li Yifei, who has been responsible for sales and channel management, and there are regulatory concerns regarding the zero-cost transfer of shares to him, which raises questions about corporate governance [4]

Core Insights - The company has confirmed that its bone cement business is a significant part of its minimally invasive vertebroplasty operations, and revenue from bone cement products will be included in the financial report for the first three quarters of 2025 [1] - The company's operations are primarily focused on orthopedics, and it has divested its stake in Jianuo Medical Management Group, which means that related revenue from this entity will no longer be included in the consolidated financial statements [1] Company Operations - The bone cement business is an important component of the company's minimally invasive procedures [1] - As of the board meeting on August 4, 2025, the company approved the sale of its stake in Jianuo Medical Management Group and the reduction of its investment in Shanghai Jingzheng Medical Technology Co., Ltd [1] - Following the completion of this divestiture, the company will no longer hold shares in Jianuo Medical and its subsidiaries, thus excluding their revenue from future consolidated reports [1]

Group 1 - The company plans to use part of the raised funds to increase capital in its wholly-owned subsidiary, Beijing Aojing Medical Equipment Co., Ltd., for the implementation of fundraising projects [1][2] - The total amount of funds raised is approximately RMB 547.67 million, with a net amount of RMB 500.82 million after deducting issuance costs [1][2] - The capital increase will amount to RMB 9.77 million, raising the registered capital of Beijing Aojing Medical Equipment from RMB 39.00 million to RMB 48.77 million, maintaining 100% ownership [2][3] Group 2 - The fundraising projects include the development of guided bone regeneration membranes, artificial bone powder, and mineralized collagen artificial bone repair materials targeted at the U.S. market [2] - The company has established a dedicated account for the raised funds and will implement strict regulatory measures to ensure the safety of the funds [5][6] - The board of directors and the supervisory board have approved the capital increase, which does not require shareholder meeting approval, and complies with relevant regulations [6]

Core Viewpoint - The company is committed to enhancing quality and efficiency while ensuring shareholder returns through a comprehensive action plan for 2025, focusing on core business development, international expansion, and effective governance [2][3]. Group 1: Business Development - The company has deepened its focus on the orthopedic medical device sector, emphasizing original innovation and product development to enhance core competitiveness [2]. - The company achieved a net profit attributable to shareholders of approximately 36.6 million yuan, representing a year-on-year increase of 2,083.64%, and a significant recovery from a previous loss [3]. - The company plans to continue developing innovative therapies and products, leveraging national policies that encourage domestic innovation in medical devices [3]. Group 2: International Expansion - The company has made significant progress in its international business, successfully entering the European and American markets with its Zeus spinal fixation system [4]. - Implanet, a subsidiary, reported revenue of 5.81 million euros in the first half of 2025, a year-on-year increase of 41.1%, with a remarkable 444% growth in the U.S. market in the second quarter [4]. Group 3: Strategic Partnerships and Acquisitions - The company completed the acquisition of the remaining equity in Beijing Waterwood Tianpeng Medical Technology Co., making it a wholly-owned subsidiary, and established a joint venture with a South Korean company to develop innovative biomedical materials [5]. - The introduction of Implanet's JAZZ system into the domestic market enhances the company's product line and competitive advantage in spinal surgery [5]. Group 4: Governance and Shareholder Returns - The company has implemented a stock incentive plan to attract and retain talent, aligning the interests of shareholders and management [7]. - A sustainable dividend strategy has been established, with a cash dividend of 0.042 yuan per share distributed to shareholders [8]. - The company is committed to optimizing its shareholder return mechanism and ensuring a balance between business growth and shareholder returns [9]. Group 5: Investor Relations and Communication - The company has enhanced its investor communication channels, conducting numerous disclosures and hosting events to engage with investors [10]. - Future plans include improving the clarity and transparency of information disclosures to ensure investors are well-informed about the company's operations and strategies [10]. Group 6: Compliance and Risk Management - The company has restructured its governance framework by abolishing the supervisory board and enhancing the roles of various committees to ensure effective oversight and compliance [11]. - Continuous training and communication efforts are in place to strengthen compliance awareness among key personnel [12].

Core Viewpoint - The company has announced its 2025 "Quality Improvement and Efficiency Enhancement" action plan, building on the achievements of the 2024 plan to optimize operations and governance while enhancing shareholder value [1]. Group 1: Business Strategy and Development - The company focuses on deepening its core business in orthopedic medical devices, emphasizing original innovation and increasing R&D investment to enhance competitiveness [1][2]. - In 2024, the company faced a significant decline in net profit, down 88% to 11.47 million yuan, primarily due to the impact of centralized procurement on spinal product sales [1]. - The company increased its R&D investment to 84.29 million yuan, a 29.24% year-on-year increase, representing 18.58% of total revenue, up 4.41 percentage points from the previous year [1]. Group 2: International Expansion - The company aims to expand its international business, leveraging its acquisition of Implanet to enhance brand recognition and market presence in developed countries [3][4]. - The JAZZ Spinal System from Implanet received FDA510(k) certification and began sales in the U.S. by the end of 2024, further enriching the company's international product line [3]. Group 3: Product Innovation and Technology - The company is advancing the development of new materials and intelligent surgical devices, focusing on integrating AI and robotics into orthopedic instruments [4][5]. - The acquisition of Waterwood Tianpeng Medical Technology Co., Ltd. aims to enhance the company's capabilities in ultrasound energy and active devices, promoting strategic synergies [6]. Group 4: Shareholder Returns and Communication - The company maintains a sustainable dividend strategy, planning to distribute a total cash dividend of 1.1671 million yuan and a capital reserve increase of 2 shares for every 10 shares held [7][8]. - The company emphasizes transparent communication with investors, utilizing various channels to ensure timely and accurate information dissemination [9][10]. Group 5: Governance and Compliance - The company adheres to strict governance standards, ensuring a well-defined structure among shareholders, the board, and management to protect shareholder interests [12][13]. - Continuous training and communication with key personnel are implemented to enhance compliance awareness and operational effectiveness [13][14].