Kinetic Medical(300326)2024-12-11 10:45Group 1: Company Overview and Recent Developments - Shanghai Kellytai Medical Technology Co., Ltd. has been actively engaging with investors to discuss its recent developments and future strategies [1][2]. - The investor relations activity took place on December 6, 2024, at the company's office in Shanghai [4][5]. Group 2: Impact of Centralized Procurement Policy - The centralized procurement policy has significantly impacted the company's performance, particularly in the spinal minimally invasive business segment, leading to a substantial decline in product prices [6]. - For instance, the winning bid prices for spinal products are as follows: vertebroplasty system (PVP) at 799 RMB, kyphoplasty system (PKP) at 1399 RMB, and spinal bone cement at 499 RMB [6]. - The trauma product segment has also seen a decline in revenue and profit due to earlier implementation of centralized procurement prices [7]. Group 3: Response Strategies to Procurement Policy - The company is addressing the challenges posed by the procurement policy through three main strategies: cost control, dual-channel product management, and expansion into overseas markets [9]. - Efforts include reducing production and market costs, enhancing operational efficiency, and exploring markets in Southeast Asia and Latin America [9]. Group 4: Research and Development Focus - The company is cautious with R&D investments due to the lengthy development cycle for new medical devices, which can take 4-7 years from concept to market [10]. - Current R&D efforts are focused on optimizing existing products and filling gaps in the product line rather than launching new projects [10]. Group 5: Future Acquisition Plans and Governance - There are currently no significant acquisition projects in progress, but future acquisitions will be evaluated based on their potential to complement the existing product line and their sustainability post-procurement policy [11][12]. - The company maintains a decentralized ownership structure without a controlling shareholder and has no immediate plans to change this status [12].