APT(688617)2024-08-28 10:34Market and Industry Trends - Medical industry rectification has impacted the admission of new products and academic promotion, with academic activities still restricted in most regions [2][3] - The admission process for new products in clinical departments has become more cautious, leading to longer admission times [3] - The company's business development forecasts for 2024 and beyond are based on the assumption of normalized industry rectification, so no adjustments to product growth predictions are needed [3] Financial and Operational Performance - Q2 electrophysiology procedure volume was approximately 3,500 cases, a 12% decrease from Q1 but a 77% increase compared to the same period in 2023 [3] - H1 2024 procedure volume increased by over 100% compared to H1 2023 [4] - The company expects procedure volume in July and August to reach Q1 levels [4] - The company anticipates installing around 200 devices in 2024, with 113 devices installed in H1 2024, meeting expectations [4] Procurement and Market Expansion - Different provinces have entered the second year of procurement cycles, with procurement volumes slightly higher than the first year [4] - A new round of electrophysiology procurement is expected in H1 2025, with potential impacts from Sichuan's volume-based procurement policies [4][5] - The company aims to increase product penetration in hospitals from less than 50% to 80%-90%, with growth driven by both existing and new hospital development [5] Product Development and Innovation - PFA, high-density mapping, and pressure-sensing catheters are expected to obtain registration certificates in Q1 2025 [5] - The company will maintain high R&D investment, focusing on priority projects and collaborating with Mindray in the electrophysiology field, particularly on PFA and RFA product development [6][7] International Market Strategy - H1 2024 overseas revenue breakdown: coronary products (60% own brand, 27% OEM), electrophysiology (11.4%), and peripheral and non-vascular products [5] - Key markets for coronary products include Europe (15%), Taiwan (18.5%), Brazil (14%), and Turkey (9%) [6] - Electrophysiology products are primarily sold in Poland, Ukraine, Korea, and Brazil, each with over 5% market share [6] - The company plans to explore international expansion for consumables, leveraging Mindray's experience, and strengthen OEM collaborations with global and domestic leaders [7] Corporate Governance and Compliance - The company will maintain its independent employee incentive policies, focusing on business growth [6] - Comprehensive compliance is emphasized as essential for stable development, with all collaborations with Mindray conducted within a compliant framework [7]