Financial Performance - Revenue for 2021 decreased by 26.5% to RMB 761.4 million, primarily due to reduced purchases by distributors under the national joint implant volume procurement policy and a provision of RMB 103.8 million for future sales price discounts[4] - Net profit for 2021 dropped significantly by 70.5% to RMB 92.6 million, mainly due to decreased revenue, increased R&D and marketing expenses, and one-time relocation costs[4] - The company achieved sales revenue of RMB 761.4 million and net profit of RMB 92.6 million in 2021, representing a decrease of 26.5% and 70.5% respectively compared to the previous year[10] - Gross profit for 2021 decreased by 30.1% to RMB 499.2 million, reflecting the impact of national joint implant volume-based procurement[24] - Net profit attributable to equity shareholders for 2021 decreased by 70.5% to RMB 92.6 million, impacted by the volume-based procurement policy[24] - Domestic sales revenue decreased by 32.3% to RMB 631.1 million, primarily due to price reductions and a provision of RMB 103.8 million for future sales discounts[33] - Gross profit decreased by 30.1% to RMB 499.2 million, with gross margin dropping to 65.6% from 69.0% due to revenue decline and price discount provisions[35] - Sales revenue for 2021 was RMB 761.4 million, a decrease of 26.5% compared to 2020[66] - Net profit for 2021 was RMB 92.6 million, a decrease of 70.5% compared to 2020[66] Market Share and Procurement - The company achieved a market share of nearly 20% in the Chinese joint market by securing bids for three brands and four product lines in the joint implant volume procurement[8] - The company's three brands and four product series all won bids in the national volume-based procurement, ranking first in hospital-reported demand for surgical volume among all brands[12] - The national volume-based procurement for joint implants covered 306,000 hip joint systems and 232,000 knee joint systems, with a total contracted procurement volume of 538,000 units[12] - The average retail price of joint implants dropped by 82% after the national volume-based procurement[11] - The company's three brands and four product lines all won bids in the national joint implant procurement, securing the maximum surgical volume submitted by hospitals[67] - The implementation of the procurement results by provincial governments remains unclear, potentially affecting the company's market share growth[67] Product Development and Innovation - The company launched the ICOS customized platform, offering tailored implants and surgical planning, simplifying complex surgeries[8] - The company's hip and knee joint replacement diagnostic and treatment technology project won the first prize of Beijing Science and Technology Progress Award[8] - The company successfully launched 3 new products based on 3D printing technology in 2021 and won the first prize of Beijing Science and Technology Progress Award[10] - The company launched a new product for early-stage femoral head necrosis and the TMK knee joint system in 2021, leveraging 3D printing technology[17] - The company established 6 national-level 3D printing customization centers and 8 provincial training centers in 2021, covering nearly 1,300 key hospitals and training over 100,000 customers[19] - The company is the only one in China with 3D printing customized product registration certificates, aiming to increase market share in the mid-to-high-end market[21] - The company plans to leverage its 3D printing customization technology to increase its market share in the mid-to-high-end market and strengthen its leadership position in the mass market in 2022[9] - The company aims to become the world's best innovative and efficient medical enterprise by 2030 and will introduce long-term equity incentives in 2022 to enhance employee motivation and creativity[9] - The proportion of innovative products in the company's overall product portfolio is expected to gradually increase, enhancing profitability[23] - The company plans to strengthen its R&D capabilities and continue launching innovative products to address clinical needs[23] Revenue Breakdown - The company's hip and knee implant business generated revenue of RMB 636.9 million in 2021, a year-on-year decrease of 31.9%[13] - The company's spine and trauma implant business achieved revenue of RMB 79.3 million in 2021, a year-on-year increase of 14.5%[14] - Customized products and services revenue reached RMB 23.3 million in 2021, a year-on-year increase of 303.1%[15] - Hip joint implant revenue decreased by 30.6% to RMB 469.5 million, while knee joint implant revenue decreased by 35.1% to RMB 167.4 million[28] - Spine and trauma implant revenue increased by 14.5% to RMB 79.3 million, driven by the expansion of 3D-printed spine products[29] - Customized products and services revenue surged by 303.1% to RMB 23.3 million, driven by successful entry into multiple top-tier hospitals[30] - Overseas sales grew by 26.4% in 2021, reflecting the company's active expansion into international markets[25] - Overseas sales revenue increased by 26.4% to RMB 130.3 million, driven by market expansion and increased surgical volume[33] R&D and Expenses - R&D expenses increased by 7.7% to RMB 113.1 million, driven by digital bone technology projects and team expansion[39] - The company made a provision of RMB 103.8 million for price discounts on certain primary hip and knee systems due to the expected price reduction from the national volume-based procurement[10] - The company's ICOS products and surgical value-added services achieved significant growth, entering multiple hospitals and contributing to revenue growth[25] Assets and Liabilities - Total assets increased to RMB 2,605.3 million in 2021, up from RMB 2,526.9 million in 2020[7] - Total liabilities rose to RMB 573.7 million in 2021, compared to RMB 484.1 million in 2020[7] - The company's equity totaled RMB 2,031.6 million in 2021, slightly down from RMB 2,042.8 million in 2020[7] - Cash and cash equivalents totaled RMB 948.3 million, including RMB 475.6 million in cash, RMB 361.2 million in structured deposits, and RMB 106.5 million in fixed-term deposits[42] - Total capital expenditure for 2021 was RMB 106.1 million, primarily for production and R&D equipment, patents, and land purchases[45] Dividends and Shareholder Returns - The company proposed a final dividend of 2.5 HK cents per share for the year ended December 31, 2021, down from 4.0 HK cents per share in 2020[5] - The company proposed a final dividend of 2.5 HK cents per ordinary share for the year ended December 31, 2021, compared to 4.0 HK cents in 2020[74] - The total reserves available for distribution to shareholders as of December 31, 2021, were RMB 965.9 million[79] International Market Challenges - The company faced challenges in its international market strategy due to the COVID-19 pandemic and disruptions in the supply chain caused by the joint implant volume procurement policy[8] - The COVID-19 pandemic continues to negatively impact the industry, with occasional outbreaks and tightened control policies potentially reducing hospital surgical volumes[67] Employee and Management - Employee headcount decreased to 908 from 1,019, while total employee compensation increased to RMB 204.5 million due to higher social insurance costs and relocation expenses[50] - The company emphasizes the importance of employee training and development, investing in continuous education and training programs for management and staff[69] - The company provides product knowledge training courses to distributors and assists them in sales and marketing activities[70] - The company organizes and participates in industry and academic seminars to strengthen relationships with key opinion leaders and external industry experts[70] - The company offers 3D ACT solutions to surgeons to help them perform surgeries more effectively[70] - The company collects feedback from surgeons to improve user experience and make product enhancements[70] Corporate Governance and Compliance - The company complied with all relevant environmental laws and regulations as of December 31, 2021[72] - The company complied with all relevant laws and regulations in China, the UK, the Cayman Islands, and Hong Kong for the year 2021[73] - The company's board of directors includes four executive directors, one non-executive director, and three independent non-executive directors[80] - No significant contracts were in place at the end of or during the year ended December 31, 2021, involving the company or its subsidiaries, and no major contracts were provided by controlling shareholders or their subsidiaries[86] - Non-compete agreements with Himalaya Limited, Shenma Limited, Mr. Li Zhijiang, Ms. Zhang Bin, and Rainbow Holdings Limited were fully complied with during the year ended December 31, 2021[87] - No stock-linked agreements were entered into or remained in effect at the end of the year ended December 31, 2021, that would require the company to issue shares[88] - The company has adopted a diversity policy for the board of directors, considering factors such as gender, age, education, and professional experience[123] - The company has complied with all provisions of the Corporate Governance Code except for provision A.2.1 (re-numbered as C.2.1 from January 1, 2022)[129] - The company has established a written guideline for employee securities trading, with no instances of non-compliance reported[130] - The board of directors held six meetings during the year, with all directors attending all meetings except for one independent non-executive director who attended five out of six[134] - The Chairman and CEO roles are both held by Mr. Li Zhijiang, who is the founder of the group and has extensive industry experience, providing strong and consistent leadership for the company[135] - The company has complied with the requirement to appoint at least three independent non-executive directors, with one possessing appropriate professional qualifications or accounting/financial management expertise[136] - Non-executive directors, including independent non-executive directors, are appointed for a specific term of three years and are eligible for re-election after their term expires[137] - The Board of Directors is responsible for leading and controlling the company, overseeing operations and financial performance, and ensuring effective internal control and risk management systems[137] - All directors have access to comprehensive and timely information and can seek independent professional advice when necessary to fulfill their duties[138] - The company has arranged appropriate directors' and officers' liability insurance to cover potential legal actions arising from the company's business[138] - The Audit Committee, consisting of two independent non-executive directors and one non-executive director, held two meetings in 2021 to review financial performance, internal audit issues, and risk management systems[141] - The Audit Committee met twice with the external auditors during 2021 to discuss significant matters related to financial reporting and internal control systems[141] - The Remuneration Committee consists of three members, including two independent non-executive directors and one executive director, with Dr. Li Shurong serving as the chairman[143] - The Remuneration Committee held one meeting in 2021 to review the company's remuneration policies and structures, as well as the compensation of directors and senior management[144] - In 2021, the company had 1 director earning below RMB 500,000, 6 directors earning between RMB 500,000 and RMB 999,999, and 2 directors earning above RMB 1,000,000[146] - The Nomination Committee is composed of three members, including one executive director and two independent non-executive directors, with Mr. Li Zhijiang serving as the chairman[146] - The Nomination Committee met once in 2021 to review the board's structure, size, and diversity, as well as the independence of independent non-executive directors[147] - The company has adopted a Board Diversity Policy, which outlines methods to achieve board diversity and is available on the company's website[149] - The Nomination Committee is responsible for identifying and selecting qualified candidates for board membership, considering factors such as gender, age, cultural and educational background, and professional experience[149] - The Nomination Committee believes that the board has achieved sufficient diversity and will review the Board Diversity Policy as necessary to ensure its effectiveness[149] - The company has adopted a Director Nomination Policy, which sets out the selection criteria and procedures for director nominations and appointments, aiming to ensure a balanced mix of skills, experience, and diverse perspectives on the board[150] - The company's risk management and internal control systems were deemed effective and adequate for the year ended December 31, 2021, as confirmed by management and reviewed by the Board and Audit Committee[152] - The company paid RMB 3,955 in audit fees to KPMG for the year ended December 31, 2021, with no non-audit services provided[155] - The company has implemented a whistleblowing procedure to allow employees to report concerns about criminal offenses, financial misconduct, or other issues anonymously[152] - The company's internal control team independently reviews the adequacy and effectiveness of risk management and internal control systems, providing results and recommendations to the Audit Committee for improvement[152] - The company has established an insider information policy to ensure fair and timely disclosure of material information to the public in compliance with applicable laws and regulations[152] - The Board reviewed the company's corporate governance policies, training for directors and senior management, and compliance with legal and regulatory requirements for the year ended December 31, 2021[151] - The company's Audit Committee assists the Board in overseeing the design, implementation, and monitoring of risk management and internal control systems[152] - The company has implemented control procedures to prohibit unauthorized access and use of insider information[153] - The company's directors are responsible for preparing the consolidated financial statements for the year ended December 31, 2021, and are not aware of any significant uncertainties that may cast doubt on the company's ability to continue as a going concern[154] - The company's co-company secretaries, Ms. Han Yu and Ms. Li Xinying, received at least 15 hours of relevant professional training during the year ended December 31, 2021, in compliance with Listing Rule 3.29[156] ESG and Sustainability - The company has identified and assessed climate change risks, set environmental goals covering carbon emissions and energy consumption, and implemented energy-saving and safety production actions[163] - The company has a three-level management structure for ESG issues, involving the board of directors, the ESG working group, and functional departments and subsidiaries[165] - The company has implemented a shareholder communication policy to ensure that shareholder opinions and concerns are properly addressed[161] - The company has adopted a dividend policy without a predetermined payout ratio, with dividends subject to the company's financial condition and shareholder approval[161] - The company has completed the identification and assessment of climate change risks and formulated corresponding response measures[163] - The company has established an ESG working group responsible for coordinating daily ESG management, including identifying significant ESG issues and preparing annual ESG reports[164] - The company has set environmental and safety production goals and regularly reviews their achievement, with progress reported to the management and board of directors[163] - The company has conducted a materiality analysis for ESG issues, comparing results with previous years to identify key topics and differences[163] - The company has set a target to reduce carbon emission intensity by 32% by 2030, with a baseline year of 2020, aiming to decrease from 0.044 tons CO2e per 10,000 yuan to 0.030 tons CO2e per 10,000 yuan[176] - In 2021, the company's greenhouse gas emissions per 10,000 yuan of production output were 0.055 tons CO2e, with detailed emissions data provided for the past three years[176] - The company has established a climate change management system, with the board of directors responsible for overseeing climate-related risks and opportunities, and the ESG working group executing quarterly assessments[173] - To address acute physical risks from extreme weather, the company has implemented a natural disaster warning mechanism and strengthened supply chain resilience by diversifying suppliers[174] - The company is actively monitoring and managing greenhouse gas emissions, with plans to consider third-party verification for carbon emissions to enhance scientific accuracy[176] - The company has committed to improving energy efficiency and reducing emissions through measures such as strict control of production, building, and office energy usage[176] - The company has identified market risks related to shifting consumer preferences towards low-carbon products and is addressing this through distributor training and public disclosure of carbon performance[175] - The company has completed acquisitions of JRI Orthopaedics Limited in 2018 and Beijing Libeier Bioengineering Research Institute Co., Ltd. in 2020, expanding its market presence[171] - The company has implemented a unified ESG information collection system since its listing, ensuring consistent ESG data reporting and disclosure[171] - The company has developed a climate risk response strategy, incorporating climate-related financial impacts into future considerations and introducing incentive measures for climate-related issues[173] - Total carbon emissions in 2021 were 4,242.8 tons CO2e, a decrease of 7.6% compared to 2020[177] - Scope 1 (direct) emissions intensity remained stable at 0.004 tons CO2e per 10,000 yuan from 2020 to 2021[177] - Scope 2 (indirect) emissions decreased by 6.8% to 3,911.7 tons CO2e in 2021 compared to 2020[177] - The company achieved 100% compliance rate for pollutant emissions (water, noise, dust, gas, solid waste) in 2021[180] - General solid waste generation in 2021 was 15.6 tons, with an intensity of 0.2 kg per 10,000 yuan of output value[184] - Dust generation intensity in 2021 was 0.1 kg per 10,000 yuan of output value[184] - Hazardous waste liquid generation intensity in 2021 was 1.1 kg per 10,000 yuan of output value[184] - The company obtained ISO14001:2015 environmental management system certification during the reporting period[178] - No major pollution incidents occurred in 2021, maintaining a zero-incident record[180] - The company implemented a comprehensive environmental management system with specific control procedures for different types of waste[182] - Total wastewater discharge in 2021 was 11,435.0 tons, a decrease of 11.8% compared to 2020[185] - Chemical Oxygen Demand (COD) in 2021 was 1,192.7 kg, a significant increase from 346.4 kg in 2020

Financial Performance - For the six months ended June 30, 2021, the company reported revenue of RMB 447.6 million, a decrease of 6.5% compared to RMB 478.9 million in the same period of 2020[4]. - Gross profit for the same period was RMB 308.3 million, down 8.3% from RMB 336.3 million year-on-year[4]. - Net profit for the first half of 2021 was RMB 111.5 million, representing a significant decline of 31.6% from RMB 162.9 million in the previous year[4]. - Revenue from hip joint replacement implants was RMB 243.4 million, a decrease of 10.2% from RMB 271.1 million in 2020[19]. - Revenue from knee joint replacement implants was RMB 108.9 million, down 11.2% from RMB 122.6 million in 2020[19]. - Revenue from spinal and trauma products increased by 109.3% year-on-year, totaling RMB 20.3 million[9]. - Revenue from external customers for orthopedic implants in China reached RMB 408,682,000, a decrease of 9.1% compared to RMB 449,957,000 in the same period last year[52]. - The total comprehensive income for the period was RMB 107,045 thousand, down from RMB 172,011 thousand in the previous year, a decrease of around 37.8%[41]. - The operating profit for the six months ended June 30, 2021, was RMB 128,919 thousand, down from RMB 192,356 thousand in the previous year, indicating a decrease of about 33.0%[41]. - Basic and diluted earnings per share for the six months ended June 30, 2021, were RMB 0.10, down from RMB 0.15 in the same period of 2020, representing a decrease of 33.3%[41]. Product Development and Innovation - The company achieved sales revenue of RMB 64.3 million from its 3D printing products, marking a growth of 6.1% compared to the same period last year[5]. - The company launched a key new product, the 3D printed total knee joint and implant system, which has been used in over 80 surgeries to date[5]. - As of June 30, 2021, the company obtained three new medical device registrations for 3D printed implants, bringing the total to eight approved products[5]. - The company launched the 3D metal printing bio-knee joint product system, becoming the first in China to receive registration for this type of product[11]. - The "Master Plan" project aims to create an integrated platform for innovative products, technology, and customer engagement, enhancing academic exchange and product promotion[11]. - The company plans to continue expanding its product offerings in orthopedic implants and surgical instruments, focusing on innovation and market penetration[48]. Market and Industry Trends - The company anticipates that the national volume-based procurement policy will significantly lower terminal prices for orthopedic products, impacting the industry’s business model[5]. - The overall market for orthopedic products is expected to undergo significant changes due to the new procurement policies, presenting both challenges and opportunities for market share expansion[5]. - The national volume-based procurement will significantly change the competitive landscape and distribution model in the artificial joint industry[7]. - The company anticipates that national volume-based procurement will accelerate industry consolidation, providing opportunities to expand market share[14]. Financial Position and Cash Flow - Cash and cash equivalents as of June 30, 2021, were RMB 541.1 million, down from RMB 956.1 million as of December 31, 2020[31]. - Operating cash flow for the six months ended June 30, 2021, was RMB 4.69 million, significantly lower than RMB 145.88 million for the same period in 2020[45]. - Net cash used in investing activities was RMB 143.11 million, compared to RMB 594.33 million in the previous year, indicating a reduction in investment outflows[45]. - The company reported a foreign exchange loss of RMB 4,438 thousand for the period, compared to a gain of RMB 9,140 thousand in the previous year[41]. Research and Development - Research and development expenses increased by 17.9% to RMB 51.7 million for the six months ended June 30, 2021, compared to RMB 43.9 million in the same period of 2020[28]. - The company is shifting its R&D focus towards complex revision surgeries and early treatment products in response to volume-based procurement pressures[10]. Shareholder Information - The approved interim dividend per ordinary share for the last fiscal year was 4.0 HK cents, down from 7.5 HK cents in 2020, reflecting a decrease of 46.67%[66]. - The company purchased 1,922,000 shares at a total cost of RMB 16,785,000 under the share award plan during the reporting period[68]. - The company’s directors and senior management held a total of 505,157,500 shares, representing approximately 45.29% of the company's equity as of June 30, 2021[75]. - The major shareholders with 5% or more equity include LZY Trust and Bamboo Trust, among others[79]. Compliance and Governance - The audit committee, consisting of independent non-executive directors, reviewed the interim financial report for the six months ending June 30, 2021, and found it to be in accordance with applicable accounting standards[105]. - The interim financial report has been reviewed by KPMG in accordance with the relevant review standards[107]. - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance by all directors for the six months ending June 30, 2021[104].

Financial Performance - For the six months ended June 30, 2020, the company achieved revenue of RMB 479.0 million, representing a 9.4% increase compared to RMB 437.8 million in the same period last year[4] - Gross profit for the same period was RMB 336.3 million, up 10.4% from RMB 304.6 million year-on-year[4] - The net profit for the first half of 2020 was RMB 162.9 million, a significant increase of 25.7% compared to RMB 129.6 million in the previous year[4] - The company reported earnings per share of RMB 0.15, compared to RMB 0.12 in the same period last year[4] - Revenue for the six months ended June 30, 2020, was RMB 478,979 thousand, an increase of 9.5% from RMB 437,783 thousand in the same period of 2019[45] - Gross profit for the same period was RMB 336,323 thousand, representing a gross margin of approximately 70.2%, compared to RMB 304,579 thousand in 2019[45] - Operating profit increased to RMB 192,356 thousand, up 25.7% from RMB 153,014 thousand year-over-year[45] - Net profit for the period was RMB 162,871 thousand, a 25.7% increase from RMB 129,555 thousand in the prior year[45] - Total revenue for the six months ended June 30, 2020, was RMB 478,979 thousand, an increase of 9.4% compared to RMB 437,783 thousand for the same period in 2019[54] Product Revenue - The 3D printing product segment generated sales revenue of RMB 60.5 million, marking an 18.1% increase year-on-year[5] - Revenue from conventional hip and knee joint products reached RMB 393.7 million, reflecting a 7.5% growth compared to the previous year[5] - Revenue from hip joint replacement implants was RMB 271.1 million, a growth of 6.1% compared to RMB 255.5 million in 2019[19] - Revenue from knee joint replacement implants increased by 10.6% to RMB 122.6 million from RMB 110.8 million in 2019[19] - Revenue from 3D printed products reached RMB 60.5 million, marking an 18.1% increase from RMB 51.3 million in the previous year[21] - Revenue from external customers for orthopedic implants in China reached RMB 449,957,000, a 15% increase from RMB 390,825,000 in the same period last year[57] - Total reportable segment revenue was RMB 516,572,000, compared to RMB 459,161,000 in the previous year, reflecting a growth of 12.5%[57] Acquisitions and Investments - The company acquired 100% equity of Beijing Libel Bioengineering Research Institute, enhancing its product line in spine and trauma[5] - The acquisition of Libel contributed RMB 9.7 million in revenue from April 24, 2020, to June 30, 2020, with over 800 hospitals using Libel's spinal and trauma implant products[9] - The company acquired a subsidiary, Libel, for a total consideration of 40,200,000 USD (approximately 284,688,000 RMB) on April 24, 2020, with acquisition-related costs amounting to 1,089,000 RMB[74] - The fair value of identifiable net assets acquired from Libel was assessed at 171,277,000 RMB, resulting in goodwill of 113,411,000 RMB due to expected synergies from the acquisition[75] Cash Flow and Financial Position - As of June 30, 2020, cash and cash equivalents totaled RMB 538.2 million, with total financial resources amounting to RMB 1,063.7 million, up from RMB 498.9 million as of December 31, 2019[32] - Current asset net value increased to RMB 1,376.7 million as of June 30, 2020, from RMB 790.2 million as of December 31, 2019, reflecting an increase of RMB 586.5 million[33] - Operating cash flow for the six months ended June 30, 2020, was RMB 145,875 thousand, up 50.5% from RMB 96,897 thousand in the previous year[50] - Cash and cash equivalents increased significantly to RMB 538,198 thousand from RMB 276,521 thousand year-over-year[46] - The net cash used in investing activities was RMB 594,329 thousand, significantly higher than RMB 57,070 thousand in the previous year, primarily due to the acquisition of a subsidiary[50] Expenses and Profitability - Research and development expenses increased by 25.0% to RMB 43.9 million, up from RMB 35.1 million in 2019, reflecting continued investment in R&D[29] - Selling and distribution expenses decreased by 25.7% to RMB 62.8 million, down from RMB 84.4 million in 2019, primarily due to reduced market activities during the pandemic[27] - Other income decreased significantly to RMB 0.9 million from RMB 15.5 million in 2019, largely due to a one-time insurance compensation received in the previous year[26] - Income tax expense for the six months ended June 30, 2020, was RMB 34.0 million, representing a growth of 26.4% from RMB 26.9 million for the same period in 2019[31] Shareholder Information - The company declared an interim dividend of 7.5 HK cents per ordinary share for the fiscal year ending June 30, 2020, compared to 3.5 HK cents per share for the same period in 2019, reflecting a 114.3% increase in dividend payout[72] - The company had issued and fully paid ordinary shares totaling 1,113,975,000 shares, an increase from 1,043,345,000 shares as of June 30, 2019, representing a growth of approximately 6.7%[71] - Mr. Li Zhijiang holds 505,157,500 shares, representing 45.35% of the company's equity[85] - Ms. Zhang Bin holds 10,125,000 shares, representing 0.91% of the company's equity[85] - Mr. Zhang Chaoyang holds 58,818,500 shares, representing 5.28% of the company's equity[85] Corporate Governance - The audit committee reviewed the interim financial report for the six months ended June 30, 2020, and found it to be in compliance with applicable accounting standards[96] - The company has adopted the standard code of conduct for securities trading as per the listing rules, and all directors confirmed compliance during the reporting period[95] - The chairman and CEO roles are held by the same individual, Mr. Li Zhijiang, who is a founder of the group and has extensive industry experience[95] Market Conditions - The ongoing centralized procurement of high-value medical consumables is expected to impact the competitive landscape of the orthopedic market[7] - Sales from domestic markets accounted for RMB 432.9 million, a rise of 15.2%, while overseas sales dropped by 25.8% to RMB 46.0 million due to the pandemic[23]