Star Sports Medicine Co (1609) investor relations material

Executive summary

• Revenue for the six months ended 30 June 2026 rose 21.6% year-over-year to RMB163.4 million, driven by strong growth in both domestic and overseas markets.

• Adjusted profit (non-IFRS) increased 24.3% to RMB48.9 million, while reported profit declined 26.1% to RMB27.4 million due to one-time listing expenses.

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

• The company completed a successful H-share listing 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%.

• Basic and diluted EPS were RMB0.57, down 28.8% year-over-year; adjusted EPS rose 20% to RMB1.02.

• R&D expenses rose to RMB23.7 million, 14.5% of revenue, supporting innovation and product pipeline.

• Cash and cash equivalents reached RMB819.6 million at period end, reflecting strong liquidity post-listing.

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

Outlook and guidance

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

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

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