Against the backdrop of performance differentiation in the medical device industry, HEARTCARE-B (06609) maintained revenue growth of over 40% and gross profit growth of over 50% in the first half of this year, successfully achieving a turnaround from losses to profitability and taking a crucial step toward scaled profitability. To share the company's growth dividends with investors, HEARTCARE-B has been actively conducting share repurchases. As early as the 2025 interim results conference in early September, management announced an HK$80 million repurchase plan, which has now been implemented within the month, demonstrating the company's practical attitude of rewarding investors with real capital and expected to further boost market confidence.

It has been observed that under the dual logic of fundamental improvement and valuation recovery, HEARTCARE-B entered an accelerated valuation recovery channel this year, particularly after disclosing interim results at the end of August, with its stock price repeatedly breaking annual highs. As of September this year, the company's highest stock price reached HK$67.90, representing a maximum increase of 237.8% year-to-date.

**Crossing the Profitability Inflection Point with Steady Fundamental Improvement**

Despite various uncertainties behind the industry differentiation pattern in the first half of this year, the company's operating revenue reached RMB 186 million, a year-on-year increase of 44.4%, demonstrating strong endogenous growth capability and risk resistance. Moreover, relying on refined operations across all aspects from sales to R&D, HEARTCARE-B's profitability quality also achieved steady improvement: the company's gross profit reached RMB 127 million, a significant year-on-year increase of 53.9%; the corresponding gross profit margin reached 68.2%, an increase of 4.2 percentage points compared to the same period last year.

Under the combined effect of "revenue generation" and "cost control," the company successfully crossed the break-even point, with net profit attributable to shareholders reaching RMB 50.9 million for the period.

In fact, one of the driving factors behind HEARTCARE-B's successful turnaround in the first half of this year was that while maintaining steady growth in its ischemic/access cash cow business, the hemorrhagic business created a new growth curve for the company. As understood, with the successive market launches of HEARTCARE-B's intracranial aneurysm embolization assist stent (NMPA innovative device qualification), embolization coils, and flow diverter devices, the company has formed a "complete domestic aneurysm treatment solution" for hemorrhagic stroke treatment, which successfully entered the volume expansion cycle in the first half of this year, driving the company's overall revenue to increase by approximately RMB 37.7 million compared to the same period last year, becoming a key growth curve for the company's performance during the reporting period.

Among these, as China's first aneurysm embolization assist stent, HEARTCARE-B's "Great Wall" stent has rapidly achieved coverage in 200 new hospitals since its approval in October last year, driving a 563% year-on-year growth in the company's hemorrhagic business revenue.

Meanwhile, HEARTCARE-B also achieved continuous iteration of its ischemic product matrix, driving a 267% year-on-year increase in the number of hospitals implanting the company's large-bore aspiration catheters, leading to a 60% year-on-year growth in overall implant volume of ischemic products, with market share exceeding 10%, further strengthening the foundational role of the ischemic business in the company's performance growth.

**Enhancing Market Confidence During Key Valuation Recovery Period**

Currently, HEARTCARE-B, with its "three pillars" of innovative R&D, integrated research-production-sales, and overseas expansion, is not only rapidly increasing market share domestically but also demonstrating strong growth potential in international markets. The company currently has 32 device products approved by NMPA, three device products approved by FDA, and one product with CE marking, with a product pipeline broadly covering acute ischemic stroke and neurovascular stenosis treatment, ischemic stroke prevention, hemorrhagic stroke treatment, and interventional access.

Additionally, the company has over 20 products under development in its R&D pipeline; in brain-computer interface technology exploration at the global development frontier, HEARTCARE-B has completed technical route validation and conducted multiple animal experiments, with clinical trials expected to begin in the third quarter of 2026.

Moreover, the company's overseas business is proceeding in an orderly manner, with product registration advancing steadily. Financial reports show that the company's multiple products with CE/FDA certification have obtained 35 registration certificates and are sold to 15 overseas countries and regions; it is also advancing approximately 100 registrations in 21 countries or regions, gradually establishing international sales channels.

While steadily entering a positive cycle of innovative R&D value, HEARTCARE-B has also reached a critical period for valuation recovery in the secondary market. However, even though the stock price has increased by more than double since the beginning of the year, the market's pricing of HEARTCARE-B still does not fully reflect its intrinsic value. Data shows that the company's current overall PS valuation is 6.51 times, significantly lower than the company's 5-year historical average of 15.18 times, indicating considerable room for valuation upward revision.

Therefore, to further boost market confidence, HEARTCARE-B recently announced its first share repurchase program, repurchasing 30,000 shares for HK$1.81 million, actively and practically fulfilling the HK$80 million repurchase plan previously announced by management at the results conference. This fully demonstrates the company's sincere attitude toward shareholder responsibility and returns, represents an important action of the company's commitment to rewarding shareholders with "real capital," and reflects management's greater confidence in the company's future development.