In the first half of this year, China's medical device industry experienced a polarized landscape of contrasting fortunes. According to the latest research report from Sinolink Securities, influenced by volume-based procurement and DRG cost control factors, the domestic medical device sector's overall revenue declined 4.77% year-on-year in Q2 2025, with sector net profit attributable to shareholders dropping 23.71%. However, driven by positive domestic policies supporting innovative medical devices, the medical device sector has shown moderate gains within the pharmaceutical and biotechnology industry since the beginning of the year, with the SHENWAN medical device sector rising over 20%. This demonstrates that despite sector performance differentiation, the secondary market continues to show confidence in the long-term value of innovative medical devices.
Against this backdrop, leading innovative medical device companies that have achieved simultaneous revenue and profit growth with significantly improved fundamentals are likely to attract increased investor attention. For instance, HEARTCARE-B (06609) has accumulated gains of over 160% since the beginning of the year, undoubtedly representing the market's recognition of its core innovation capabilities and fundamentals.
According to the company's latest disclosed interim results for 2025, with hemorrhagic products beginning to contribute quantitatively in the first half and the ischemic product matrix continuing to iterate, the continuously improving "surgical closed loop" for access/hemostasis has become the main engine driving HEARTCARE-B's revenue growth. While continuously enhancing its "cash generation capability," HEARTCARE-B has also maintained refined operations, successfully achieving profitability turnaround during the period, further consolidating its "innovation-profitability" positive cycle.
**Blockbuster Products Bring New Growth, Commercial Potential Continuously Explored**
In an environment where the medical device industry is becoming increasingly differentiated, commercialization capability has undoubtedly become one of the important indicators measuring companies' differentiated innovation capabilities. For HEARTCARE-B, the profitability turnaround represents dual recognition from both the industry and market for the company's strong innovative R&D capabilities and differentiated advantages of innovative products.
On August 29, HEARTCARE-B announced its interim results for 2025. The financial report shows that in the first half of 2025, the company achieved operating revenue of 186 million yuan, a year-on-year increase of 44.4%. Despite numerous uncertainties behind the industry differentiation landscape in the first half of this year, HEARTCARE-B maintained high-speed revenue growth of over 40%, demonstrating strong endogenous growth capability and risk resistance.
In terms of profitability, the company's net profit attributable to shareholders reached 50.9 million yuan during the period, achieving a turnaround from loss to profit year-on-year, successfully crossing the break-even point. Behind the accelerated growth in revenue and profit, HEARTCARE-B's "revenue enhancement and cost reduction" capabilities are noteworthy.
The core of "revenue enhancement" lies in the company maintaining steady growth in its ischemic/access cash cow business while hemorrhagic business creates new growth curves for the company. According to Zhitong Finance APP, as the first domestic company to provide one-stop solutions for stroke treatment and prevention interventional medical devices, HEARTCARE-B has been committed to promoting the evolution and upgrade of neurointervention business toward differentiated therapeutic devices.
Regarding the ischemic cash cow business, during the reporting period, HEARTCARE-B achieved continuous iteration of its ischemic product matrix. The Captor® thrombectomy stent (CE approved) and the "cascade aspiration + CATCH + 088 large lumen" solution formed a stent/aspiration "dual-engine," further enhancing the competitiveness of main thrombectomy devices (aspiration catheters and thrombectomy stents) and one-stop medical device solutions for different subtypes of acute ischemic stroke.
Data shows that in the first half of this year, the number of hospitals implanting the company's large-diameter aspiration catheters increased 267% year-on-year, driving overall ischemic product implantation volume up 60% year-on-year, with market share exceeding 10%, strengthening the foundational role of ischemic business in the company's performance growth.
Beyond the cash cow business, HEARTCARE-B's hemorrhagic business "new growth" was also a highlight in the financial report this year. With the successive market launch of HEARTCARE-B's intracranial aneurysm embolization assist stents (NMPA innovative device qualification), embolization coils, and flow diverters, the company has formed a "domestic complete aneurysm treatment solution" for hemorrhagic stroke treatment, successfully entering the volume growth phase in the first half of this year, contributing approximately 37.7 million yuan to the company's overall revenue compared to the same period last year, becoming the 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 covered 200 new hospitals since its approval in October last year, driving hemorrhagic business revenue growth of 563% year-on-year, promoting the company's achievement of balanced development in both ischemic and hemorrhagic business segments, further optimizing the company's revenue structure.
**Refined Operations + Cash Generation Capability Enhance Safety Margin**
An important indicator of an innovative medical device company perfecting its "innovation-profitability" closed loop is switching the company's cash cycle pillar from financing cash flow to operating net cash flow. This requires not only sustained cash-generating products but also refined daily management and abundant cash flow.
For HEARTCARE-B, with multiple products successively approved for market and commercialization gradually scaling up, the company's operating net cash flow reached 54 million yuan in the first half of this year, a substantial year-on-year increase of over 80%. Simultaneously, achieving profitability turnaround during the period indicates that HEARTCARE-B is steadily entering a "innovation-profitability" positive cycle.
Behind this, comprehensive refined operations from sales to R&D are indispensable, which is also a specific manifestation of the company's "cost reduction" capability. An important reflection of HEARTCARE-B's refined operations is the continuous improvement of its expense structure. During the period, combined sales and administrative expenses totaled 68.729 million yuan, with these two expense categories' proportion of total revenue decreasing from 44.8% in the same period last year to 37.0%.
In terms of R&D expenses, with improved innovation-commercialization conversion capabilities and key pipeline products reaching mature and highly certain mid-to-late development stages, the company achieved staged reduction in investment expenditure through refined management. The company's overall R&D expenditure during the period was 20.618 million yuan, a year-on-year decrease of 35.1%.
Additionally, refined operations accelerated the company's product scale-up and process maturity improvement, reflected in the financial report as steady improvement in the company's profitability quality. The company's gross profit during the period reached 127 million yuan, a substantial year-on-year increase of 53.9%, with corresponding gross margin achieving 68.2%, an improvement of 4.2 percentage points compared to the same period last year.
**Continuously Improving Integrated R&D-Production-Sales Closed Loop**
While accelerating "revenue enhancement and cost reduction," HEARTCARE-B has also been further improving its integrated R&D-production-sales innovation closed loop in recent years, consolidating the foundation for the company's leap from "structural foundation" to "commercial realization."
To date, the company has 32 device products approved by NMPA, three device products approved by FDA, and one product with CE marking. The product pipeline broadly covers acute ischemic stroke and neurovascular stenosis treatment, ischemic stroke prevention, hemorrhagic stroke treatment, and interventional access. Currently, the company holds 267 registered patents, including 132 invention patents. The continuously accumulating patent technology reserves lay a solid foundation for the company to build competitive, high-quality product portfolios.
Currently, HEARTCARE-B has over 20 products under development in its R&D pipeline. The drug-eluting stent has completed comparative clinical trials and follow-up, with registration submission expected in Q4 this year. In exploring brain-computer interface technology at the global development frontier, HEARTCARE-B has completed technical route validation and conducted multiple animal experiments, with clinical trials expected to begin in Q3 2026.
In supply system construction, HEARTCARE-B currently operates facilities in Shanghai Lingang and Nanjing Jiangbei, providing stable production capacity assurance. The company is also accelerating production process improvements to achieve comprehensive supply chain cost improvements. During the reporting period, the company achieved 35 process improvements and optimizations, introduced three self-developed automated production equipment pieces, and achieved over 96% domestic raw material sourcing rate, realizing significant cost improvements.
In commercialization, HEARTCARE-B has established an extensive distribution network domestically, covering over 2,500 hospitals in all provinces and regions except Macau. For example, in the first half of this year, the company's ischemic products were actively implanted in approximately 1,400 hospitals, a year-on-year increase of over 24%, becoming an important foundation for market share improvement.
While enhancing domestic product market share, HEARTCARE-B is also actively deploying overseas to create new growth engines. According to market research data from Markets and Markets and Grand View Research, the global peripheral intervention market is approximately $10 billion, with the Chinese market accounting for about 12%-15% of the global market; the global neurointervention market is approximately $7 billion, with the Chinese market accounting for about 15%-20% of the global market. Once overseas markets are successfully opened, China has the complete opportunity to birth its own world-class medical device giants like "Medtronic" or "Johnson & Johnson."
Currently, HEARTCARE-B's overseas business is developing in an orderly manner, with product registration progressing steadily. The financial report shows that the company's multiple products with CE/FDA certification have obtained 35 registration certificates, selling to 15 overseas countries and regions; additionally, approximately 100 registrations are being advanced in 21 countries or regions, gradually establishing international sales channels.
**Conclusion**
Comprehensively speaking, HEARTCARE-B's first-half revenue increased over 40% year-on-year and successfully crossed the break-even point, leading the industry. This success is not accidental but built on the synergistic efforts of multiple interventional product lines including ischemic, hemorrhagic, and access products, efficiency improvements from refined operations, and the strategic foundation of perfecting the integrated R&D-production-sales closed loop.
Against the backdrop of intensifying differentiation in the medical device industry, HEARTCARE-B, with its "three driving forces" of innovative R&D, integrated R&D-production-sales, and overseas expansion, is not only rapidly increasing market share domestically but also demonstrating strong growth potential in international deployment. With policy environment optimization, enhanced high-end innovation support, and continuous overseas market development, the company is positioned to move toward broader development space under "endogenous + external" dual-wheel drive, welcoming the "Davis Double-Click" of business development and valuation growth.