Star Sports Medicine Co (1609) investor relations material

Executive summary

• Revenue for H1 2026 rose 21.6% year-over-year to RMB163.4 million, driven by strong domestic and overseas sales growth.

• Adjusted net profit increased 24.3% to RMB48.9 million, while reported profit declined due to one-time listing expenses.

• Overseas revenue surged 70.6% year-over-year, now comprising 24.9% of total revenue.

• Expanded presence in over 3,000 hospitals in China and accelerated global expansion.

• Completed successful H-share IPO in May 2026, raising HK$829.6 million.

Financial highlights

• Gross profit increased 21.8% to RMB121.3 million, with gross margin stable at 74.2%.

• Adjusted net profit: RMB48.9 million, up 24.3% year-over-year; reported profit: RMB27.4 million, down due to RMB19 million in listing expenses.

• R&D investment: RMB23.7 million, 14.5% of revenue.

• Cash and cash equivalents: RMB819.6 million as of June 30, 2026.

• Debt-to-asset ratio improved to 9.1% from 20.2% at year-end 2025.

Outlook and guidance

• Expects continued growth in the sports medicine device sector, supported by demographic trends and rising healthcare demand.

• Strategic focus on expanding product pipeline, strengthening IP, and accelerating global expansion.

• Plans to utilize IPO proceeds for smart factory construction, R&D, global commercialization, and working capital.

• Focus on talent development and international certifications to support long-term growth.