Financial Data and Key Metrics Changes - For the full year 2025, the company reported revenue of $365 million, reflecting a year-over-year growth of 4.7% driven by international expansion, particularly in APAC, which grew by 26.9% [5][14] - North America revenue decreased by 19.2% year-over-year to $111 million due to macroeconomic challenges and weaker consumer demand [14][15] - Gross profit for 2025 was $215.1 million, with a gross margin of 58.9%, down from 62.1% in 2024, attributed to shifts in geographic and product mix [16] - Adjusted net profit for 2025 was $31 million, up 7.9% year-over-year, with an adjusted net profit margin of 8.5% [17] Business Line Data and Key Metrics Changes - Energy-based devices (EBD) revenue was $310.4 million, representing 85% of total revenue, remaining essentially flat year-over-year [15] - Injectable revenues reached $28 million, up 185.6% year-over-year, driven by the strong performance of Profhilo and broader adoption by practitioners [15][8] Market Data and Key Metrics Changes - International markets, excluding North America, grew by 20.1%, with APAC as the primary growth engine [14] - The company achieved significant milestones in China, including the launch of Soprano ICE Platinum and the upcoming commercialization of DAXXIFY [7][9] Company Strategy and Development Direction - The company is focused on building a broader ecosystem that integrates technologies, diagnostics, injectables, and digital capabilities to enhance operational efficiency and long-term engagement [3][4] - Plans for 2026 include strengthening the flagship device portfolio, expanding the global energy-based device offering, and introducing additional EBD solutions in Thailand [7][10] - The company aims to capture long-term growth opportunities in the global medical aesthetics market while maintaining operational discipline in challenging markets like North America [11][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the new executive team and their ability to lead the company through its next growth phase, emphasizing operational discipline and long-term value creation [4] - The company anticipates a recovery in the U.S. market as macroeconomic conditions improve, with a focus on optimizing cost structures and enhancing strategic capabilities [49][51] Other Important Information - The company is committed to balancing reinvestment for sustainable growth with returning value to shareholders, proposing a final dividend of HKD 0.095 per share for 2025 [17] - The company is exploring localized manufacturing in China to improve cost efficiency and enhance supply chain resilience [13][14] Q&A Session Summary Question: Marketing expense ratio trends and future expectations - Management acknowledged a downward trend in sales and marketing expenses and confirmed ongoing investments in strategic projects like DAXXIFY to balance efficiency and growth [20][21] Question: Update on R&D pipeline and clinical progress - The company plans several product launches in 2026, particularly in the hair growth segment, and is assessing additional products for future opportunities [23][24][26] Question: Sales strategy for energy-based devices in China - The company aims to maintain its dominant position in China and leverage synergies across different business segments to drive growth [28][30] Question: Commercialization plans for DAXXIFY - The company has a capacity of 100,000 units for DAXXIFY in 2026, focusing on high-value clinics and planning to expand its injectable portfolio by the end of 2027 [35][36][37] Question: Strategic roadmap for 2026 and beyond - The company is implementing the Alma Universe ecosystem to enhance value for practitioners and consumers, with a focus on EBD and AI integration [39][41][42] Question: Underlying reasons for U.S. market softness and recovery potential - Management attributed the decline to macroeconomic factors and expressed optimism for recovery in 2026, supported by operational optimizations and new product introductions [45][49][51] Question: Progress on AI-enabled products and geopolitical impacts - The company is leveraging partnerships for AI integration in its products and is managing operational impacts from geopolitical issues with resilience [57][60][61]

Financial Data and Key Metrics Changes - The company reported revenue of $365 million for 2025, reflecting a year-over-year growth of 4.7% driven by international expansion, particularly in APAC, which grew by 26.9% [5][14] - North America revenue decreased by 19.2% year-over-year to $111 million due to macroeconomic challenges and weaker consumer sentiment [14][15] - Gross profit for 2025 was $215.1 million, with a gross margin of 58.9%, down from 62.1% in 2024, attributed to shifts in geographic and product mix [16] - Adjusted net profit increased by 7.9% year-over-year to $31 million, with an adjusted net profit margin of 8.5% [17] Business Line Data and Key Metrics Changes - Energy-based devices (EBD) revenue was $310.4 million, representing 85% of total revenue and remained flat year-over-year [15] - The injectable business saw significant growth, with revenues reaching $28 million, up 185.6% year-over-year, driven by the success of Profhilo [15][18] Market Data and Key Metrics Changes - International markets, excluding North America, grew by 20.1%, with APAC as the primary growth engine [14] - The company achieved record growth in China and Thailand, contributing significantly to the overall revenue increase [5][14] Company Strategy and Development Direction - The company is focused on building a broader ecosystem that integrates technologies, diagnostics, injectables, and digital capabilities to enhance operational efficiency and long-term engagement [3][4] - Plans for 2026 include strengthening the flagship device portfolio and expanding the global energy-based device offering, alongside the introduction of new platforms and applicators [7][10] - The company aims to capture long-term growth opportunities in the global medical aesthetics market while maintaining a disciplined approach to operational execution [11][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic challenges and highlighted the importance of operational discipline and strategic investments [11][49] - The company anticipates a recovery in the U.S. market, contingent on improvements in macroeconomic conditions and geopolitical stability [49][51] Other Important Information - The company is advancing its AI-enabled diagnostics and skincare initiatives, which are expected to enhance patient retention and treatment outcomes [10][18] - A final dividend of HKD 0.095 per share has been proposed for 2025, reflecting the company's commitment to balancing reinvestment and shareholder value [17] Q&A Session Summary Question: Marketing expense ratio trends and future expectations - Management noted proactive measures to reduce sales and marketing expenses while continuing to invest in strategic projects like DAXXIFY in China, aiming for efficiency and profitability [20][21] Question: R&D pipeline and clinical progress - The company plans several product launches in 2026, focusing on hair growth and leveraging existing platforms for new technologies [23][24] Question: Sales strategy for energy-based devices in China - The company aims to maintain its dominant position in China and grow its energy-based devices segment, integrating efforts across different business units [28][30] Question: Commercialization plans for DAXXIFY - The company has a capacity of 100,000 units for DAXXIFY in 2026, targeting high-value clinics and planning to expand its injectable portfolio in China [35][36] Question: Strategic roadmap for 2026 and beyond - The company is focused on creating an ecosystem to enhance value for practitioners and consumers, with a strong emphasis on energy-based devices and hair growth solutions [39][41] Question: Impact of geopolitical issues on business - The company has demonstrated resilience in handling geopolitical challenges, maintaining operational capacity while facing increased shipping costs [60][61]

Financial Data and Key Metrics Changes - For the full year 2025, revenue was $365.3 million, representing a 4.7% year-over-year growth, primarily driven by double-digit international expansion, particularly in APAC, which grew by 26.9% [5][14] - Gross profit for 2025 was $215.1 million, with a gross margin of 58.9%, down from 62.1% in 2024, attributed to shifts in geographic and product mix and new import tariffs [17] - Adjusted net profit for 2025 was $31 million, up 7.9% year-on-year, with an adjusted net profit margin of 8.5%, reflecting disciplined cost management and efficiency gains [17] Business Line Data and Key Metrics Changes - Energy-based devices (EBD) revenue was $310.4 million, representing 85% of total revenue, essentially flat year-on-year, supported by strong demand for Alma Harmony and Alma Hybrid platforms [14][15] - Injectable revenues reached $28 million, up 185.6% year-on-year, reflecting significant diversification due to Profhilo's momentum and broader adoption by practitioners [15] Market Data and Key Metrics Changes - North America revenue was $111 million, down 19.2% year-on-year, impacted by weakened macroeconomic conditions and softer consumer demand [14] - International markets, excluding North America, grew 20.1%, led by Asia-Pacific, which rose 26.9% year-on-year, serving as the primary growth engine [14] Company Strategy and Development Direction - The company is focused on building a broader ecosystem that integrates technologies, diagnostics, injectables, and digital capabilities to adapt to evolving market demands [3][4] - Plans for 2026 include strengthening the flagship device portfolio, expanding the global energy-based device offering, and introducing additional EBD solutions in Thailand [7][10] - The company aims to capture long-term growth opportunities in the global medical aesthetics market while maintaining operational discipline in North America [11][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the new executive team and their ability to lead the company with a focus on execution, operational discipline, and long-term value creation [4] - The company anticipates a recovery in the U.S. market in 2026, contingent on improvements in macroeconomic conditions and interest rates [49] Other Important Information - The company completed a structured leadership transition and is committed to balancing reinvestment for sustainable growth with shareholder value retention [4][17] - R&D spending was $16.9 million in 2025, reflecting ongoing investments in clinical programs and next-generation products [16] Q&A Session Summary Question: What specific measures are being taken to cut down the sales and marketing expense ratio? - Management indicated that proactive measures were taken to drive efficiency, resulting in reductions in sales and marketing expenses while still investing in strategic projects like DAXXIFY [20][21] Question: Can you provide an update on the company's R&D pipeline and expected clinical progress? - The company plans several launches in 2026, particularly in the hair growth segment, and is also assessing additional products for future opportunities [24][25] Question: What is the sales strategy for energy-based devices in China for 2026? - The company aims to maintain its dominant position in China and leverage synergies across different business segments to drive growth [28][29] Question: What are the plans for the commercialization of DAXXIFY this year? - The company has a capacity of 100,000 units for DAXXIFY and plans to target high-value clinics initially, with positive feedback received so far [34][35] Question: What is the strategic roadmap for 2026 and key growth drivers? - The strategy focuses on creating an ecosystem to provide more value to practitioners and enhance brand strength, with a strong emphasis on energy-based devices and hair growth solutions [38][40] Question: What are the underlying reasons for the softness in the U.S. segment and the potential for recovery? - Management noted that the decline was primarily due to macroeconomic conditions, but they are optimistic about recovery in 2026 with improved economic indicators [46][49] Question: What is the progress on AI-enabled products and the impact of geopolitical issues? - The company is leveraging partnerships for AI technologies and has maintained operational capacity despite geopolitical challenges, although there are impacts on shipping costs [56][58]

Disclaimer Sisram Medical 2025 Annual Earnings Presentation Stock Code: 1696.HK 2 2025 Snapshot Revenue US$ 365.3 M +4.7% YoY Revenue from APAC Revenue from Injectables US$ 147.4M +185.6 % YoY +26.9% YoY US$ 28.0 M International Markets (Excl. NA) US$ 254.3 M +20.1% YoY Gross Profit Margin 58.9 % - 3.2 p.p. YoY Adjusted Net Profit Margin 8.5 % +0.3 p.p. YoY 1 3 Global Expansion at A Glance Reinforcing our leadership across core and emerging markets, as we continue to scale globally with focus and agility Di ...

Core Insights - Sisram Medical reported solid growth in 2025, driven by strong performance in international markets and an accelerating injectables business [1] - The company achieved a revenue of US$365.3 million, marking a 4.7% year-on-year increase, with injectables revenue soaring by 185.6% to US$28.0 million [6] - The company is focusing on building an integrated medical aesthetics ecosystem, enhancing its product offerings and expanding its market presence [8][9] Financial Highlights - Revenue for the year ended December 31, 2025, was US$365.3 million, a 4.7% increase year-on-year [6] - Injectables revenue reached US$28.0 million, reflecting a significant increase of 185.6% year-on-year [6] - Gross profit margin decreased to 58.9% from 62.1% in 2024, while net profit decreased by 13.1% to US$25.0 million [6] Key Achievements - The energy-based device (EBD) portfolio reinforced Sisram's leadership in the global aesthetics market, with Alma Harmony receiving multiple awards [4] - DAXXIFY achieved regulatory approval and initial clinical applications in China, with over 10,000 units shipped [5] - The company launched Universkin by Alma, an AI-powered personalized skincare platform, enhancing its service offerings [7] Market Expansion - International markets (excluding North America) grew by 20.1% year-on-year, with APAC revenue increasing by 26.9% to US$147.4 million [6] - Revenue in Europe and the Middle East and Africa was US$56.4 million and US$36.4 million, representing increases of 11.7% and 5.3% year-on-year, respectively [6] - North America revenue decreased by 19.2% to US$111.0 million [6] Strategic Outlook - Sisram plans to establish a manufacturing facility in China to support regional R&D and production [8] - The company aims to prioritize the commercialization of DAXXIFY in mainland China and advance regulatory approvals for additional injectables [9] - Sisram will explore strategic M&A opportunities to enhance its ecosystem and innovation capabilities [9]

Core Insights - Sisram Medical Ltd has achieved a significant milestone with its long-acting botulinum toxin type A product, DAXXIFY, passing quality testing from the National Institutes for Food and Drug Control of China, confirming its compliance with national drug regulatory standards [1][2] Product Overview - DAXXIFY is the world's first long-acting peptide-formulated neuromodulator, utilizing proprietary Peptide Exchange Technology (PXT) and a stabilized peptide formulation, designed for the temporary improvement of moderate to severe glabellar lines in adults [2] - The product has received initial commercial orders from several core medical aesthetic institutions, indicating strong market validation and recognition [2] Commercialization Strategy - The company has established a professional team focused on market expansion, clinical support, and supply chain management, enhancing its operational capabilities [3] - Strategic collaborations with industry leaders, such as Fosun Wanbang and Shanghai Pharmaceuticals, have been formed to ensure a reliable and compliant supply chain [3] Market Positioning - DAXXIFY is positioned as a premium injectable product in mainland China, expected to drive business growth and support Sisram's strategic expansion into injectables [4] - The product is anticipated to create a "second growth curve" for the company, reinforcing its competitiveness within an integrated wellness ecosystem [4] Company Background - Sisram Medical Ltd is a global leader in medical aesthetic solutions with over 25 years of experience in Energy-Based Devices, serving customers in over 110 countries [5] - The company is majority-owned by Fosun Pharma and has been listed on the Hong Kong Stock Exchange since September 2017 [5]

Core Viewpoint - The announcement highlights a commercial distribution cooperation agreement between Furuya Medical Technology and Fosun Wanbang, focusing on the marketing and distribution of DaxibotulinumtoxinA-lanm, a product aimed at improving moderate to severe frown lines in adults [1] Group 1: Agreement Details - Furuya (Tianjin) will handle commercialization, marketing, medical education, and business planning services for the product, while Fosun Wanbang (Jiangsu) will manage import, procurement, customs clearance, warehousing, transportation, and general distribution [1] - The product, known as DAXXIFY, is a re-authorized product by Fosun for temporary improvement of frown lines caused by muscle activity [1] Group 2: Strategic Implications - The agreement aligns with the company's business model and represents a routine business process for the group [1] - The company has obtained rights for the product's use, import, sales, and other commercialization activities (excluding manufacturing), positioning it advantageously in the market [1] - The anticipated transactions from this agreement are expected to generate additional revenue, thereby strengthening the company's market position [1]

Core Viewpoint - The announcement highlights a commercial distribution cooperation agreement between Furuya Medical Technology and Fosun Wanbang, focusing on the marketing and distribution of DaxibotulinumtoxinA-lanm, a product aimed at improving moderate to severe frown lines in adults [1] Group 1: Agreement Details - Furuya (Tianjin) will handle commercialization, marketing, medical education, and business planning services for the product, while Fosun Wanbang (Jiangsu) will manage import, procurement, customs clearance, warehousing, transportation, and general distribution [1] - The product, known as DAXXIFY, is a re-authorized product by Fosun for temporary improvement of frown lines caused by muscle activity [1] Group 2: Business Implications - The agreement aligns with the company's business model, allowing Furuya (Tianjin) to provide services as part of its routine operations [1] - The company has obtained rights for the product's use, import, sales, and other commercialization activities (excluding manufacturing), positioning it advantageously in the market [1] - The anticipated transactions from this agreement are expected to generate additional revenue, thereby strengthening the company's market position [1]

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]