Core Viewpoint - The domestic vascular intervention leader, Xinmai Medical, is facing significant challenges as it anticipates a decline in revenue and profit for the first half of 2025, marking the first instance of negative growth since its listing, attributed to market changes and product price adjustments [1][4]. Group 1: Financial Performance - Xinmai Medical expects revenue for the first half of 2025 to be between 708 million and 787 million yuan, a year-on-year decrease of 0% to 10% [1]. - The projected net profit attributable to shareholders is estimated to be between 304 million and 361 million yuan, reflecting a year-on-year decline of 10.52% to 24.78% [1]. - In the first half of 2024, the company maintained a revenue growth rate of 26.63% and a net profit growth rate of 44.06%, primarily driven by its core product, the Castor stent, which accounted for over 37% of revenue [4]. Group 2: Market and Regulatory Challenges - The National Healthcare Security Administration (NHSA) issued an inquiry regarding the high pricing of the Castor stent, which has a factory price of around 50,000 yuan but is sold to medical institutions for over 120,000 yuan [4]. - Following the inquiry, Xinmai Medical announced a price adjustment plan, resulting in a 40.42% price reduction for the Castor stent, with a new price cap of 71,500 yuan [4]. - The NHSA's focus on price rationality over innovation has made the previous high-margin pricing model unsustainable for Xinmai Medical [5]. Group 3: Strategic Adjustments and Risks - In response to market pressures, Xinmai Medical reduced its R&D investment by 34.9% in 2024, which may weaken its technological capabilities in the long term [6]. - The company’s overseas revenue contribution remains limited at 1.64 billion yuan, accounting for only 13.6% of total revenue, with the recent acquisition of Lombard Medical still in a loss-making state [6]. - The reliance on a single product for growth has exposed vulnerabilities, especially as the market undergoes significant restructuring and price reductions [5][6].