Core Insights - Heart Medical (688016.SH) faced its most challenging growth year since its IPO due to price reductions of core products, tax payments, and significant cuts in R&D investment [1][2] - The company reported total revenue of 1.206 billion yuan, a slight increase of 1.61% year-on-year, and a net profit attributable to shareholders of 502 million yuan, up 1.96% [1] - Operating cash flow decreased by 185 million yuan to 374 million yuan, a decline of 33.08% compared to the previous year [1] Revenue and Profit Trends - From 2020 to 2023, Heart Medical consistently achieved revenue and net profit growth rates above 30%, with 2022 showing growth rates of 30.95%, 12.99%, and 12.25% for revenue, net profit, and net profit excluding non-recurring items, respectively [1] - The company's core product, the Castor® stent system, accounted for approximately 38% to 41% of total revenue in 2023, with sales estimated between 450 million to 490 million yuan [2] Price Adjustments and Market Response - Following public outcry regarding the high pricing of the Castor stent, the National Medical Insurance Administration mandated a price reduction of 40.42%, setting the new price at no more than 71,500 yuan [2] - Heart Medical's sales volume for the Castor stent in 2023 was between 6,500 and 7,000 units [2] Quarterly Performance Analysis - In 2024, the company's revenue and net profit showed a significant decline in the third and fourth quarters, with revenues of 182 million yuan and 237 million yuan, and net profits of 150 million yuan and -51 million yuan, respectively [5] - The cash flow from operating activities also dropped sharply, falling to negative 1.84 million yuan in the fourth quarter from 2.12 billion yuan in the first quarter [5] R&D Investment and Tax Issues - Heart Medical's R&D investment decreased by 34.91% year-on-year to 170 million yuan, representing 14.05% of total revenue, down 7.89 percentage points from the previous year [5] - The company faced tax payment issues, having to pay 62.23 million yuan in back taxes and 6.9 million yuan in late fees due to the loss of its high-tech enterprise status [6]