Core Viewpoint - The report evaluates the implementation and effects of the company's "Quality Improvement and Efficiency Enhancement" action plan for 2025, emphasizing the focus on enhancing operational efficiency, market competitiveness, and investor returns while navigating challenges in revenue and costs [1][2][3]. Group 1: Financial Performance - The company achieved total operating revenue of 714.43 million yuan, a decrease of 9.24% compared to the same period last year [1]. - Operating costs increased by 19.37% to 220.13 million yuan, while sales and management expenses rose by 53.68% and 32.00%, respectively, primarily due to the expansion of the overseas sales team following the acquisition of Lombard [1]. - The company reported an operating profit of 367.11 million yuan, down 22.35%, and a net profit attributable to shareholders of 314.65 million yuan, a decrease of 22.03% year-on-year [1]. Group 2: Product Development and Market Expansion - The company focuses on continuous product innovation, with significant R&D investments leading to the approval of several innovative products, including the Aortic Stent Graft System and the HepaFlow Tips [1][2]. - As of June 30, 2025, the company had submitted 741 patent applications, with 252 patents granted, including 89 domestic invention patents [2]. - International sales revenue reached 123 million yuan, a year-on-year increase of 95.22%, accounting for 17.25% of total revenue, with products sold in 45 countries and regions [3][4]. Group 3: Investor Returns and Governance - The company emphasizes shareholder returns, having distributed a total of 629.66 million yuan in cash dividends since its listing, with a proposed cash dividend of 1.30 yuan per share for 2025 [4][5]. - The total amount of cash dividends and share buybacks for 2024 reached 365.81 million yuan, representing 72.86% of the net profit attributable to shareholders [4]. - The company is committed to enhancing its governance structure and internal control systems to ensure compliance and protect shareholder rights [6][7]. Group 4: Communication and Investor Relations - The company maintains a strong commitment to information disclosure and investor communication, utilizing various channels to engage with investors and provide insights into its operations and strategies [6][7]. - The management team actively participates in investor meetings and events to enhance transparency and build trust with stakeholders [6][7].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a significant price increase in the next 6-12 months [5]. Core Insights - The company reported a revenue of 332 million yuan in Q1 2025, a year-on-year decrease of 7%, and a net profit attributable to shareholders of 130 million yuan, down 30% year-on-year [2]. - The domestic market is facing short-term pressure due to changes in the market environment, leading to adjustments in product pricing and promotional strategies, while the overseas market is expanding rapidly with a sales revenue growth of over 93% year-on-year [3]. - The company has set ambitious growth targets in its employee stock ownership plan, aiming for a net profit of no less than 600 million yuan in 2025, reflecting confidence in future operations [4]. Summary by Sections Performance Overview - In Q1 2025, the company achieved a revenue of 332 million yuan, a decrease of 7% year-on-year, and a net profit of 130 million yuan, down 30% year-on-year [2]. Operational Analysis - The domestic market is under pressure, but the company maintains a leading market share in domestic active artery intervention products and is expanding its market coverage for peripheral vascular intervention products. The overseas market has seen a significant increase in sales, with new registrations in three countries and over 100 total overseas product registrations [3]. Profit Forecast and Valuation - The company is projected to achieve net profits of 606 million yuan, 794 million yuan, and 965 million yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 21%, 31%, and 22% [5].