"Siasun Robot & Automation's first interim report after going public: revenue surged 32 times year-on-year! Zhen Health Medical (02697) signals accelerated commercialization."

The Hong Kong stock market's Siasun Robot & Automation sector is reaching a critical juncture, transitioning from "concept narrative" to "performance validation." On August 28, "the first company in surgical Siasun Robot & Automation," Zhenjiankang Medical (02697), released its first interim results since going public. During the reporting period, the company achieved revenue of 5.671 million yuan, a substantial year-on-year increase of 3178.0%; the overall gross margin improved to 76.9%, up 9.8 percentage points from the same period last year. In the high-end medical device arena, the value of the interim report extends beyond mere numbers; it lies in validating the feasibility of the commercialization path. This report clearly signals three major points: core products are being delivered in bulk, consumable revenues are starting to increase, and the value of the product matrix is gradually being realized. This indicates that Zhenjiankang Medical has moved past the technical and registration verification stages and has officially entered a new phase of accelerated commercialization. 1. Revenue growth outpaces industry phases, revenue structure validates the business model. The early growth in the surgical Siasun Robot & Automation industry has never been a smooth climb but rather a leap from "sporadic deliveries" to "bulk implementations." The explosive growth of Zhenjiankang Medical's interim revenue is a typical reflection of this phase characteristic. According to the financial report, as of June 30, 2026, the company achieved a revenue of 5.671 million yuan, an increase of 3178.0% compared to 173,000 yuan in the same period last year, significantly higher than the average level of early commercialization in the industry. The growth did not come from occasional deliveries of a single project but from a systematic upgrade of the product and business structure. By business type: - Sales revenue from surgical Siasun Robot & Automation was 5.16 million yuan, accounting for 91.0% of total revenue, forming the core pillar of growth and marking the official entry of core puncture and ablation Siasun Robot & Automation products into the bulk delivery phase. - Consumable sales revenue was 408,000 yuan, accounting for 7.2% of total revenue, a year-on-year increase of 135.8%. With the increase in installed quantity and clinical usage frequency, the repeat purchase attribute of supporting consumables has begun to emerge. The classic surgical Siasun Robot & Automation business model of "once-off equipment sales + continuous consumable revenue" has begun to show preliminary operational success. - Technical service revenue was 103,000 yuan, accounting for 1.8% of total revenue, derived from R&D service outputs, with business boundaries gradually extending. Regionally, national is being advanced simultaneously. The South China region generated 1.991 million yuan, accounting for 35.8%, while continuing to deepen the core market in the Greater Bay Area. The North China region generated 3.213 million yuan, accounting for 57.7%, with significant breakthroughs in the major medical markets in the north. The company has covered 23 key provinces nationwide and established partnerships with 27 distributors, expanding its channel network from regional leaders to a nationwide presence. 2. Profitability quality improving marginally, operational efficiency steadily rising. The market often focuses primarily on loss figures, but for medical device companies in the early stages of commercialization, the more critical observation dimension is changes in profitability structure and operational efficiency. During the reporting period, the company achieved a gross profit of 4.363 million yuan, with an overall gross margin of 76.9%, up from 67.1% in the same period last year, an increase of 9.8 percentage points. The announcement indicates that the increase in gross margin is primarily due to the rise in equipment revenue and the high gross profit levels in the equipment business. It is notable that compared to traditional puncture navigation equipment, Zhenjiankang Medical's microwave ablation surgical Siasun Robot & Automation is the world's first and only product that integrates "precise positioning + microwave ablation," covering core scenarios for liver and lung tumors, showcasing an "internationally pioneering" technical barrier and stronger product premium capacity. By business analysis, the surgical Siasun Robot & Automation sales gross margin was 77.6%, and the consumable sales gross margin was 79.9%, both maintaining high levels. As the subsequent proportion of consumables revenue continues to increase and scale effects gradually become apparent, there remains upward space for overall gross margin. On the profit side, the net loss for the period was 60.424 million yuan, an increase of 6.5% compared to the same period last year. However, breaking down the loss structure shows that phase-based and non-operating factors were the main drivers: administrative expenses during the period totaled 32.251 million yuan, which included one-off costs related to the IPO of 17.592 million yuan. If we exclude this one-off expenditure, operational administrative expenses for the period were approximately 14.659 million yuan, a decrease of about 11.8% from 16.622 million yuan in the same period last year, clearly indicating an improvement in operational efficiency. Three expenses present a "stable R&D, reduced sales, controlled administration" healthy structure: - Sales and distribution expenses were 17.455 million yuan, down 3.9% year-on-year, achieving a decrease in expenses amidst significant revenue growth and ongoing channel expansion, showcasing simultaneous realization of scale effects and operational efficiency. - R&D expenditures were 26.931 million yuan, a year-on-year increase of 15.2%, maintaining stable investment intensity, with ongoing iterations of core products, expansion into new indications, and advancement in cutting-edge pipeline R&D. - The increase in administrative expenses is mainly attributed to one-time inputs related to the IPO, while ongoing operating costs continue to be optimized. From a cash flow perspective, the net cash outflow from operating activities during the period was 56.668 million yuan, narrowing by 9.6% compared to the same period last year. This reflects a reduction in cash consumption alongside increased R&D investment and revenue expansion, indicating marginal improvement in operational cash generation capacity. As of the end of the reporting period, the company had cash and bank deposits totaling 460 million yuan, a significant increase from 182 million yuan at the end of 2025, primarily funded by net proceeds from the IPO. At the current consumption rate, this funding reserve is sufficient to sustain at least three years of R&D and commercialization investment, providing a solid financial safety cushion. 3. Full-stack product matrix builds barriers, creating competitive advantages over peers. Competition in the percutaneous puncture surgery Siasun Robot & Automation sector is shifting from "qualifications" to "completeness" of the system. The barriers for single puncture navigation devices are gradually leveling out, while the integrated full-stack capability of "puncture + ablation" represents the core of long-term barriers. Currently, there are 21 approved percutaneous puncture surgery Siasun Robot & Automation devices in China, including 19 domestic and 2 imported. Zhenjiankang Medical uniquely holds 5 Class III registration certificates, making it the company with the earliest approval time and the most approved products in the industry. According to data from Frost & Sullivan, by 2025, the company holds a 28.0% market share in China's percutaneous puncture surgery Siasun Robot & Automation sector, ranking first in the industry. Compared to most peers still focused on "single puncture navigation devices," Zhenjiankang Medical's advantages in its full-stack matrix are gradually becoming evident: First, the product layers cover all price ranges. The core surgical Siasun Robot & Automation consists of four major models: TH-S1 (flagship), TH-S (mid-range), TH-S Pro (high cost-performance ratio), and TH-SA (compact model), supplemented by the TH-P series of high cost-performance compact models, catering to the full range of needs from top-tier hospitals to county-level medical institutions, while most competing products rely solely on a single model, severely limiting scene adaptability. Second, the "puncture + ablation" integrated closed loop. The key product, microwave ablation surgical Siasun Robot & Automation TH-X MW, is recognized by the National Medical Products Administration as an "international first" and is the only product worldwide to integrate puncture navigation, robotic arm positioning, respiratory tracking, and microwave energy output on a single platform, covering both liver and lung indications; the iterative model TH-X HMW has also been approved for liver tumor treatment. Compared to the industry's common "navigation platform + third-party ablation device" patchwork solutions, the inherently integrated product has generational advantages in puncture precision, coverage of ablation target areas, and surgical efficiency, thereby increasing the value and stickiness for individual hospital clients. Third, multi-department application opens up ceilings. A single puncture device typically covers only specific departments such as pulmonology, while the combination of "puncture + ablation" can simultaneously encompass multiple departments including thoracic surgery, oncology, hepatobiliary surgery, and interventional medicine, significantly enhancing the procurement ceiling and client lifetime value for individual hospitals. 4. Policy and pipeline resonance pave the way for long-term growth. For the surgical Siasun Robot & Automation industry, two core prerequisites for commercial expansion are essential: one is a smooth payment channel, and the other is continuous iteration of product pipelines. Currently, Zhenjiankang Medical stands at the intersection of these two significant opportunities. On the payment side, the implementation of insurance policies is bridging the last mile of commercialization. In January 2026, the National Healthcare Security Administration released the "Guidelines for Project Initiation on Pricing Items for Surgical and Therapeutic Assisted Operations (Trial)," clearly defining the charging items for "operational robotic arm assistance fees (participatory execution)," applicable to the company's core products TH-S1, TH-S, TH-S Pro, and TH-SA, with bottom prices above 5,000 yuan in all provinces except Guizhou, Guangxi, and Yunnan; for "operational robotic arm assistance fees (precise execution)," applicable to key products TH-X MW and TH-X HMW, bottom prices exceed 15,000 yuan in all provinces except Shanxi. As of the end of the reporting period, local implementation policies and timelines had been issued in nine provinces, with another nine provinces releasing respective policies. The clarity of charging standards allows hospitals to accurately calculate the return on equipment investment, promoting a shift from "trial research" to "formal procurement," significantly shortening the overall procurement cycle across the industry. On the pipeline side, core products and cutting-edge lines are advancing steadily, continually unlocking growth boundaries: - Core indication expansion: The pulmonary indication for TH-X MW received approval from the National Medical Products Administration during the reporting period, thus this "international first" percutaneous microwave ablation surgical Siasun Robot & Automation now covers both liver tumors and lung tumors; the clinical trials for the registration of TH-S1 for retroperitoneal lesions commenced in November 2025, with 16 patients enrolled by the end of the reporting period. A registration application is planned to be submitted in the fourth quarter of 2026, anticipating approval in the second half of 2027, which will open a new blue ocean market for retroperitoneal tumors. - International expansion: The CE certification for core products was submitted and accepted in January 2026, with expectations to obtain certification by the fourth quarter of 2026, thus formally opening up European market space. - Cutting-edge pipeline reserves: TH-X Cryo cryoablation Siasun Robot & Automation is steadily under R&D; the ex vivo organ preservation and assessment systems TH-LS LU100 and TH-LS KI300 are planned to start clinical trials in the first half of 2027 and 2031, respectively, aiming to fill domestic market gaps and create a second growth curve. In terms of intellectual property, during the period, 16 patents were applied for and 8 were authorized. The R&D team consists of 72 people, representing 45.57% of total employees, with 28% holding master's or doctoral degrees, ensuring technical team stability and supporting the continuous advancement of the pipeline. 5. Conclusion In summary, this first interim report after Zhenjiankang Medical's IPO essentially serves as a confirmation of accelerated commercialization. The explosive revenue growth validates the market acceptance of the products, while the rise in consumables confirms the sustainability of the business model. The full-stack product matrix, alongside policy advantages, jointly constructs a long-term growth moat. The percutaneous puncture surgery Siasun Robot & Automation sector is still in its early stages of enhanced penetration. With the implementation of health insurance payments and increased clinical awareness, the industry stands on the brink of mass volume expansion. Compared to the development model of individual breakthroughs seen in peers, Zhenjiankang Medical's "puncture + ablation" full-stack layout possesses greater long-term competitiveness and cyclical resilience. Additionally, Zhenjiankang Medical's forward-looking layout and pre-emptive positioning in the organ normothermic perfusion system demonstrate even greater potential. As subsequent pipelines materialize and channels deepen, this leading company in the segmented track is poised to realize its commercialization pace, likely exceeding market expectations.