Core Insights - The integration of AI in the medical and pharmaceutical sectors is becoming increasingly prominent, with numerous innovative products showcased at the China International Import Expo, highlighting AI's role in drug development, clinical efficiency, and decision-making [1][2][6]. Group 1: AI Empowerment in Medical Research and Drug Development - The Chinese government has implemented policies to promote AI in the pharmaceutical industry, emphasizing the use of new information technologies in drug research [2]. - Major multinational companies like Roche, AstraZeneca, Johnson & Johnson, and Siemens Healthineers are collaborating with AI firms to advance various projects [2][3]. - Roche's AI-driven solutions, such as the "MDT Intelligent Body" and "Little Roche Smart Star," aim to enhance clinical practice efficiency and support the entire research process, having already assisted over 4,000 doctors in completing more than 600 research projects [3]. Group 2: AI in Medical Devices and Diagnostics - The introduction of AI-powered medical devices is transforming traditional healthcare practices, with companies like Medtronic showcasing their AiBLE smart ecosystem that integrates surgical robots and imaging systems [6]. - Siemens Healthineers presented its AI-driven innovations, including a prostate cancer diagnostic software that enhances detection accuracy and reduces misdiagnosis risks [7]. - Boston Scientific debuted several AI-enabled cardiac health innovations, including the FDA-approved HeartLogic heart failure monitoring system, which can predict heart failure risks [7]. Group 3: Brain-Computer Interface Technology - Brain-computer interface (BCI) technology is emerging as a revolutionary treatment paradigm, enabling patients with severe disabilities to control devices through thought [11][12]. - Siemens Healthineers introduced a comprehensive BCI solution that covers preoperative planning, intraoperative navigation, and postoperative evaluation, facilitating the clinical application of BCI technology [12]. - Medtronic showcased a rechargeable, perceptive closed-loop brain stimulator that offers personalized treatment for conditions like Parkinson's disease, enhancing patient care [12].

Overall Performance - The company reported a revenue of 165 million USD for H1 2025, a year-on-year decrease of 2.5% [1] - The net profit attributable to the parent company was 6 million USD, down 41.3% year-on-year [1] - Gross margin stood at 60.0%, a decline of 2.4 percentage points year-on-year, while net margin was 5.4%, also down 2.4 percentage points [1] Regional Market Performance - Revenue from medical beauty products was 137.7 million USD, a decrease of 7.8% year-on-year, primarily affected by weak demand in the North American market [2] - Injection filling products generated 14.4 million USD, a significant increase of 218.1% year-on-year, driven by global direct sales and distribution networks [2] - North American revenue was 56.6 million USD, down 15.6% year-on-year, impacted by high interest rates and weak consumer spending [2] - Asia-Pacific revenue reached 65.8 million USD, up 17.6% year-on-year, benefiting from the effectiveness of the direct sales strategy [2] - European revenue was 23.8 million USD, a slight decline of 0.8% year-on-year [2] Product Development and Strategy - The company continues to optimize its product matrix, with core energy source devices like Soprano and Harmony maintaining competitiveness in hair removal and skin tightening [3] - The global first long-acting peptide-based neuromodulator Daxxify has received NMPA approval, and a sales team is being formed for its launch in China [3] - The company is advancing its pipeline with lipolytic injections completing Phase II clinical trials and other products like silk protein composite gel progressing [3] - The launch of AI-driven personalized skincare system Universkin and smart skin analysis platform Alma IQ is expected to enhance service value [3] - The company aims to leverage its direct sales network to strengthen its position in the Asia-Pacific region and open a second growth curve through injection filling business [3] - The company maintains profit forecasts, expecting net profits of 3.8 million USD, 4.6 million USD, and 5.4 million USD for 2025-2027, representing year-on-year growth of 52%, 21%, and 16% respectively [3]

Financial Data and Key Metrics Changes - The company reported revenue of $165.5 million for H1 2025, a decrease of approximately 1.9% compared to the previous year, primarily due to challenging market conditions such as high interest rates and weakened consumer spending in North America [8][14][18] - Gross profit margin was 60%, down 2.4 percentage points year over year, attributed to a shift in product mix towards higher-cost professional products and lower revenue contribution from North America [15][16] - Adjusted net profit was $12 million, reflecting a decline of 28.1% year over year [16] Business Line Data and Key Metrics Changes - Medical aesthetics products remained the largest revenue contributor, generating $137.7 million, or 83.2% of total revenue [16] - The injectables segment saw significant growth, increasing by 280.1% to $14.4 million, representing 8.7% of total revenue, up from 2.7% [16] Market Data and Key Metrics Changes - International sales channels grew by 7.1% year over year, with the Asia Pacific region achieving double-digit growth of 17.6%, driven by strong performance in Thailand and Korea [10][14] - The company’s direct operations worldwide provided robust market access and execution capabilities, allowing it to offset regional challenges [10] Company Strategy and Development Direction - The company is transitioning to a holistic ecosystem partner in medical aesthetics, integrating energy-based devices, injectables, and personalized skincare [4][5] - Future focus includes strengthening corporate leadership in Asia Pacific and North America, with anticipated launches of new products like Dexify in China [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in regaining momentum in regions affected by geopolitical tensions and anticipated stronger performance in H2 2025 due to increased consumer confidence and demand for recent launches [11][12] - The company plans to continue expanding its unique wellness ecosystem and deepen relationships with clinics and end consumers [12] Other Important Information - The successful North American launch of Universe Skin by Alma, an AI-assisted skincare system, is a key milestone for the company [5] - The company is preparing for the launch of Dexify, the world's first peptide-powered botulinum toxin in Mainland China, and expanding its injectable portfolio in various regions [12][15] Q&A Session Summary Question: What is the main reason for the good performance in the APAC area? - Growth in Thailand was driven by the introduction of Profilo, while Korea benefited from existing direct operations and the concept of lifting using titanium [20][22] Question: What is the proportion of direct sales in the first half of the year? - Approximately 85% of the business was from direct operations, slightly down due to a shift towards distributor fulfillment in North America [24][25] Question: What are the main reasons for the decrease in North America performance? - High interest rates and consumer spending concerns led to delays in deal closures and order processing [29][32] Question: What is the current progress of the launch of Dexify in China? - The company is advancing phase three clinical trials for Dexify and expects to launch in H2 2025, aiming for significant sales growth in the following years [55][56] Question: What are the differences among the injectable products? - The company offers a range of injectables including neotoxins, volumetric fillers, and biostimulators, each serving different clinical needs [60][62] Question: What is the guidance on revenue and net profit for 2025? - The company expects growth in both revenue and net profit in the second half of 2025, driven by new product launches and a backlog of orders [70][72]

Financial Performance - Sisram Medical's revenue decreased by 1.9% year-over-year to $165.5 million in H1 2025 [9, 71], but excluding North America, revenue grew 7.1% YoY [71] - Gross profit margin decreased by 2.4 percentage points to 60.0% [9, 71], due to product mix and decreased North America revenue [71] - Injectables revenue increased significantly by 218.1% year-over-year [9, 79], driven by geographical expansion and commercialization efforts [80] - Net profit decreased by 31.9% [70] Regional Performance - North America revenue decreased by 15.6% [10, 75] due to market headwinds [75] - APAC revenue increased by 17.6% [10, 75] due to the "Go-Direct" strategy [75] - Europe revenue declined slightly by 0.8% [75], but new EBD platforms saw notable growth [75] - Middle East and Africa revenue decreased by 9.7% [76] due to geopolitical tensions [76] Strategic Initiatives - The company is preparing for the launch of DAXXIFY in mainland China in H2 2025 [13, 45, 86] - The company is expanding global penetration of Alma Harmony, Alma IQ, and Universkin by Alma [86] - The company is driving injectables portfolio Revanesse and Profhilo growth in key markets [86] - The company is developing direct-sales offices in strategic regions [86]