Specifically, healthcare reform policies have affected, and may continue to affect, our pharmaceutical glass packaging business, with their impact primarily on our tubular glass vials.
Financial Information · 第 200 页
While lower pharmaceutical product prices may generally create cost pressure that is transmitted along the value chain and place downward pressure on the selling prices of our products, successful bids by certain customers may increase their production and deliveries, thereby driving demand for our products and supporting our sales volume.
Financial Information · 第 200 页
On the other hand, volume-based procurement, medical insurance cost control and fluctuations in downstream pharmaceutical demand may adversely affect our sales volume, pricing and product mix.
Revenue attributable to our products subject to VBP schemes amounted to RMB1,324.9 million, RMB1,478.0 million, RMB1,447.8 million, RMB682.9 million and RMB695.8 million in 2023, 2024, 2025 and the six months ended June 30, 2025 and 2026, respectively, representing 33.1%, 35.5%, 35.6%, 33.9% and 35.0% of our total revenue for the same periods, respectively.
Business · 第 135 页
While the VBP scheme sometimes allows us to sell our products in larger volumes, it typically exerts downward pressure on the prices at which we sell our products to our distributors.
Business · 第 136 页
During the Track Record Period, our historical success rate in VBP bidding was 85.7%, and all 28 VBP renewal or continuation projects in which we had participated as of the Latest Practicable Date had been successfully renewed or continued.
In 2023, 2024, 2025, and the six months ended June 30, 2025 and 2026, sales revenue from our drugs that had been included either in China’s national reimbursement drug list (“NRDL”) or the national volume-based procurement (“VBP”) scheme amounted to RMB2,524.6 million, RMB3,043.9 million, RMB3,282.4 million, RMB1,626.2 million, and RMB1,844.0 million, which accounted for approximately 82.4%, 84.5%, 85.6%, 85.9%, and 83.3% of our total sales revenue of pharmaceuticals, respectively.
Business · 第 192 页
Historically, we maintained an overall high success rate (median: 76.6%) in bidding and renewal processes for the VBP schemes in which we chose to participate.
Business · 第 194 页
Our Directors are of the view that the pricing pressure from the VBP schemes would not have a material adverse impact on our business operations and financial performance, due to the following: (i) our revenue growth is expected to continue to be driven primarily by innovative drugs, as of the Latest Practicable Date, none of our innovative drugs had participated in VBP schemes, and they are not expected to be affected by the VBP scheme in the near term; (ii) our major marketed generic drugs, such as TaiJia, benefit from significant economies of scale, which effectively mitigate pricing pressure; and (iii) sales revenue of drugs included in the national VBP schemes, as a percentage of our total sales revenue of pharmaceuticals, decreased throughout the Track Record Period, from 51.0% in 2023 to 45.0% in 2024, further to 31.8% in 2025, and from 34.8% in the six months ended June 30, 2025 to 27.1% for the same period of 2026.
During the Track Record Period and up to the Latest Practicable Date, we had participated in 38 rounds of regional VBP public tenders, of which our products were successfully selected in 31 tenders, representing a success rate of approximately 81.6%.
Business · 第 179 页
For products within the scope of VBP, we generally offer volume-based discounts ranging from 30% to 70% off our standard ex-factory prices.
Business · 第 180 页
For the years ended December 31, 2023, 2024 and 2025 and the three months ended March 31, 2026: (i) VBP-eligible life support products accounted for nil, 0.5%, 0.7% and 0.3% of our revenue from life support products, respectively; (ii) VBP-eligible minimally invasive intervention products accounted for 1.7%, 5.5%, 10.5% and 13.1% of our revenue from minimally invasive intervention products, respectively; and (iii) VBP-eligible in vitro diagnostics products accounted for 4.1%, 4.9%, 2.9% and 3.9% of our revenue from in vitro diagnostics products, respectively.
All of our in-network medical institutions adhere to such policies on centralized procurement of decocting pieces, which may lead to reduction in prices of commonly-used decocting pieces and in turn the revenue and gross profit margin of our provision of TCM healthcare services.
Summary · 第 15 页
All of our in-network medical institutions adhere to such national policies on centralized procurement of TCM patent medicines, which caused downward pricing pressure on our commonly used medicines and could lead to reduced revenue and gross profit margin.
Summary · 第 15 页
Due to the changes in the reimbursement standard, sale of TCM formula granules declined.
维健国际控股集团有限公司WinHealth International Holding Group Company Limited
三项主要产品纳入国家集采带来降价压力
As of the Latest Practicable Date, the generic names of three of our major products have been included in the national centralized procurement catalog, namely Tamiflu® (oseltamivir phosphate capsules), Regpara® (cinacalcet hydrochloride tablet) and Coniel® (benidipine hydrochloride tablet).
Business · 第 165 页
However, leveraging the strong brand reputation of the product and our flexible multi-channel commercial model, we achieved sustained growth in both sales volume and profit contribution from Tamiflu®, resulting in a net positive impact on our financial performance.
Business · 第 165 页
Although provincial centralized procurement has led to periodic declines in sales volumes of certain products (such as Asmeton®), and upstream supplier strategy adjustments (such as supplier’s partial reallocation of Asmeton® resources) have exacerbated such fluctuations, we have mitigated these effects through channel optimization and out-of-hospital market expansion.
During the Track Record Period and up to the Latest Practicable Date, 22 of our medical devices were selected in the said centralized procurement regime in China.
Business · 第 152 页
The implementation of VBP led to a market-wide pricing reset and a reconfiguration of procurement volumes under a more standardized framework.
Financial Information · 第 192 页
These programs facilitated broader hospital access and patient coverage, while also affecting product mix and average selling prices.
As of December 31, 2025, Anjiayin had been included in centralized procurement under provincial alliance procurement programs across more than 20 provincial-level regions in China.
Business · 第 143 页
(i) changes in product pricing, including the implementation of centralized procurement programs, and (ii) changes in sales volume as a result of medical insurance control measures.
Business · 第 179 页
We respond by adopting flexible bidding and market access strategies to secure tender wins, manage pricing expectations and support revenue growth across regions.
During the same periods, we derived revenue of RMB272.6 million, RMB316.9 million and RMB278.3 million in our self-owned medical institutions from public medical insurance programs, respectively, representing 64.6%, 63.3% and 59.0% of our total revenue for the same periods.
Business · 第 160 页
In 2023, 2024 and 2025, based on the latest applicable catalogs of products subject to centralized procurement as of the end of each period, our revenue generated from sales of products subject to centralized procurement was RMB8.4 million, RMB13.0 million and RMB11.2 million, respectively, representing 2.0%, 2.6% and 2.4% of our total revenue for the same periods.
Business · 第 161 页
our medical institutions that are Medical Insurance Designated Medical Institutions are subject to the pricing guidelines set by the relevant local healthcare administrative authorities and the pharmaceutical zero mark-up policy (藥品零加成政策), which is a requirement to sell essential pharmaceuticals to patients at the procurement bidding price without any mark-up.
During the Track Record Period, five of our marketed finished drug products were included in national VBP scheme.
Financial Information · 第 239 页
As of December 31, 2025, nine of our marketed finished drug products sold in China were included in the NRDL.
Financial Information · 第 238 页
For our major marketed finished drug products, apart from micafungin sodium and oseltamivir phosphate which are already included under the VBP schemes and whose pricing impact has been substantially reflected in our historical financial performance, the remaining products are not expected to enter the VBP schemes until at least the next anticipated national cycle in 2029; and
In such volume-based procurement procedures, we, as the registrant or filing entity of the medical devices, submit bids to compete for selection through a bidding process.
Business · 第 129 页
These procedures exert pricing pressure on us, as the winning bid prices are generally lower than historical market prices.
Business · 第 129 页
For example, in recent years, the healthcare regulatory framework in China has undergone various changes, including the tendering process, centralized procurement regime and the two-invoice system.
Additionally, our pricing may be influenced by healthcare policies such as centralized procurement and Diagnosis-Related Group (DRG) systems, which play a significant role in public health procurement and reimbursement structures.
Summary · 第 3 页
For our domestic business, we maintain a nationwide unified pricing system to ensure fairness, transparency and brand consistency.
Business · 第 201 页
We review and adjust our prices periodically based on material cost fluctuations, exchange rate movements, new product launches or changes in procurement policies.
In 2023, 2024 and 2025, our revenue generated from products sold under VBP schemes (EPOSINO (依普定^®^), SINOGEN (賽若金^®^) and WHITE-C (白 特喜^®^)) as at the end of each year contributed 10.7%, 23.3% and 36.4% of our total revenue relating to pharmaceutical products generated by domestic sales.
Business · 第 169 页
In key provinces such as Guangdong, following the implementation of VBP, the average selling prices of our major products decreased by double-digit percentages, while their aggregate sales volumes increased significantly, demonstrating a clear “price-for-volume” effect.
Business · 第 170 页
To mitigate the impact of VBP on our sales volume, revenue and profitability, we (i) actively pursue “price-for-volume” by expanding hospital coverage and increasing penetration in winning provinces, (ii) continuously optimize production efficiency and procurement to lower unit costs, and (iii) develop new formulations and long-acting products, including GB05 and GB-K02, which are more differentiated, generally not immediately subject to existing VBP tenders and allow more pricing and reimbursement flexibility.
四川新荷花中药饮片股份有限公司Sichuan Neautus Traditional Chinese Medicine Co., Ltd.
集采致中标产品2025年均价下降25.8%
Consequently, our average selling prices for these 29 products in the years ended December 31, 2025 decreased by 25.8% compared to our average selling prices in 2024.
Business · 第 152 页
Except for three product types, the inclusion of these products in the centralized procurement scheme resulted in bidding prices that were approximately 8% to 64% lower than our average selling prices in 2024.
Business · 第 152 页
Revenue generated from these products only accounts for 2.8% and 3.9% of our total revenue in 2023 and 2024, prior to the launch of the nationwide centralized procurement scheme, and accounts for 2.3% of our total revenue in 2025, after the launch of the nationwide centralized procurement scheme.
北京天星医疗股份有限公司STAR SPORTS MEDICINE CO., LTD.01609.HK
带量采购致植入物平均售价下滑
Gross profit margin for medical implants decreased from 79.0% in 2023 to 72.4% in 2024, primarily due to the lower selling prices of our medical implants, which were included in the volume-based procurement programs since 2024.
Summary · 第 9 页
As a result, the average selling price of our medical implants decreased from RMB711.9 per unit in 2023 to RMB446.3 per unit in 2024 and further decreased to RMB436.9 per unit in 2025.
Business · 第 146 页
Our Directors are of the view that the impact of the volume-based procurement programs on our product pricing will be mitigated going forward, as we have already made adjustments in 2024 and improved our cost management, as evidenced by our relatively stable pricing in 2024 and 2025.
As of December 31, 2025, five of our approved products were included in national or provincial VBP schemes, namely Kangmairui, Li’erban, Qianweitai, Weidagan and Pirui.
Business · 第 166 页
While VBP participation provides volume certainty and expanded market access, it creates downward pressure on our product pricing and requires careful strategic consideration regarding our participation decisions and pricing proposals.
Business · 第 166 页
Five of our marketed products, including key products such as Kangmairui and Li’erban, were eligible to participate in this follow-on procurement and successfully won the bids in February 2026.
In 2023, 2024 and 2025, revenue generated from such product subject to the VBP scheme amounted to RMB7.4 million, RMB8.3 million and RMB5.9 million, respectively, which had an immaterial impact on our product price and overall performance.
In general, the pricing power of endoscopic surgical robot manufacturers, including us, is subject to market demand from hospitals and competitive dynamics among major players.
Summary · 第 18 页
Given the innovative nature of surgical robots and the limited number of surgical robots approved by the NMPA so far, the likelihood for surgical robots to be included in the centralized procurement scheme is low.
Business · 第 392 页
For example, compared to the currently most widely used da Vinci Surgical Systems, our domestically manufactured endoscopic surgical robots enjoy various cost advantages, such as lower logistics costs and tariffs compared to international transportation costs and tariffs for imported products.
Sales of generics and traditional Chinese medicines decreased over the Track Record Period as certain of our major marketed products are generic drugs that were adversely impacted by the VBP schemes, which resulted in (i) a significant reduction in selling prices for products included in the VBP schemes, despite an increase in sales volume under those VBP schemes; in some cases, a corresponding decrease in sales volumes to hospitals outside the VBP schemes, (ii) a decrease in sales volumes for products that belong to a drug class subject to the VBP schemes but did not participate in such schemes, and (iii) a decrease in sales volumes of certain product due to increased competition from its competing drug class which was included in the VBP schemes.
Summary · 第 2 页
The decrease in the average selling price was largely the result of (i) the significantly lower bid price under the VBP scheme, and (ii) the spillover effect of VBP pricing, which exerted downward pressure on selling prices in provinces not covered by the scheme.
Summary · 第 24 页
While the VBP scheme sometimes allows us to sell our products in larger volumes, it typically exerts downward pressure on the prices at which we sell our products to our distributors. To mitigate such impact, we continue to diversify our product portfolio by introducing new marketed drugs.
If we are successful in winning bids in a centralized tender process, the relevant products will be sold to the public medical institutions at the bid prices, which is the primary determinant of prices at which we sell our products to our distributors.
Financial Information · 第 381 页
While the VBP policy allows us to sell our drug products in larger volumes, it also exerts downward pressure on the prices at which we sell our products to our distributors, thus impacting our gross profits and gross profit margins.
Financial Information · 第 381 页
As of the Latest Practicable Date, eight of our products have been included in national or provincial VBP Schemes.