In the medical instruments industry, innovation is the core driving force behind technological progress, but even the best products need commercialization to realize their value. As a leader in the high-end endoscope field in China, Jin Hai Medical (02225), with strong technical strength, not only continues to lead in the 4K3D fluorescence composite endoscope sector but also showcases strong development momentum in other high-end Medical Devices. To further enhance the company's position in domestic and international markets, Jin Hai Medical has accelerated the commercialization of its basket of flagship products through building its own commercialization team and external collaborations.

A strong alliance with SINOPHARM Ling Shang pushes domestic high-end Medical Devices to a new level.

According to Zhitong Finance APP, on January 3, 2025, Jin Hai Medical announced that its subsidiary Jin Hai Xie Huan Medical has reached a commercial cooperation with SINOPHARM Ling Shang, whereby Jin Hai Xie Huan authorizes SINOPHARM Ling Shang as the exclusive distributor of the company's high-end Medical Devices in China. The products covered by this signed commercial cooperation basically encompass Jin Hai Medical's basket of flagship products, including 4K3D fluorescence composite endoscopes, intervertebral foramen endoscopes, and a series of advanced instrument sets.

Public information shows that SINOPHARM Ling Shang belongs to China Meheco Group and is a joint venture subsidiary of SINOPHARM Holdings Co., Ltd. and Mitsubishi Corporation from Japan. As a comprehensive operation service provider of medical consumables, SINOPHARM Ling Shang is committed to creating a digital supply chain service platform based on Big Data and an interconnected information system, providing clients with full supply chain solutions. In addition, SINOPHARM Ling Shang also has a diversified business model to meet the diverse and personalized needs of the market, such as entrusted distribution, direct sales promotion, and nationwide distribution.

Relying on SINOPHARM Ling Shang's extensive channel advantages and strong market influence, Jin Hai Medical's basket of flagship products can quickly cover a wider market and achieve rapid growth. Especially with the advancement of the localization process of high-end Medical Devices, Jin Hai Medical's 4K3D fluorescence endoscope, intervertebral foramen endoscope, and supporting instrument sets have already shown strong market competitiveness and growth potential, and cooperation with SINOPHARM Ling Shang will undoubtedly further consolidate and expand the market share of these products.

For Jin Hai Medical, the cooperation with SINOPHARM Lingshang marks an important step in its business development and is a result of Jin Hai Medical's continuous deep cultivation in the Medical Technology field, which also signifies that the company has received recognition from a super platform within the Industry. For SINOPHARM Lingshang, partnering with a company like Jin Hai Medical, which has strong technological innovation capabilities, will benefit the complementary advantages of technology and resources, jointly promoting the research and market promotion of Medical Technology products.

Therefore, the cooperation between Jin Hai Medical and SINOPHARM Lingshang is not only the beginning of resource sharing and complementary advantages but also indicates that Jin Hai Medical will gain broader recognition in the Medical Technology field. With the deepening of cooperation, Jin Hai Medical expects more collaborative intentions to be realized, thus opening a new chapter in business development. This cooperation is significant not just for the two companies but will also have a positive impact on the entire Medical Technology industry, promoting innovation in cooperation models and overall improvement of service levels.

It is worth mentioning that SINOPHARM Lingshang has cooperation with the Private Hospital Association of Malaysia, so the cooperation with SINOPHARM Lingshang will help Jin Hai Medical's products enter a broader international market in the future, providing opportunities for the export of Jin Hai Medical's products.

In addition to cooperating with SINOPHARM Lingshang, Jin Hai Medical is also actively building its own commercial team and has appointed a veteran with over ten years of experience in Medical sales, He Xiao, as Chief Marketing Officer, responsible for formulating and implementing the company's marketing strategy and sales goals, as well as promoting and managing sales channels. Relying on its rich network resources in the Medical industry, Jin Hai Medical's commercialization process is expected to accelerate. Furthermore, in order to better serve customers, Jin Hai Medical also plans to establish four sales centers.

Through external cooperation and the establishment of its own commercialization team, it can be foreseen that in the near future, Jin Hai Medical's level of commercialization will achieve a qualitative leap, and at that time, the company's performance is expected to achieve explosive growth.

Multiple products under research are expected to continue achieving high growth.

It is noteworthy that in the first half of the year, signs of high growth in Jin Hai Medical's performance have begun to emerge. It is understood that in the first half of this year, Jin Hai Medical achieved revenue of 25.937 million Singapore dollars, an increase of 116.45% year-on-year. Among them, the revenue from minimally invasive surgical solutions and medical products and related service fees increased from 0.4 million Singapore dollars in the first half of 2023 to 12.3 million Singapore dollars in the first half of 2024.

Despite the substantial increase in revenue from minimally invasive surgical products, Jin Hai Medical's 4K3D fluorescent endoscope registration certificate was only approved in the third quarter of this year, so with the contribution of this product, Jin Hai Medical's performance in the third and fourth quarters is expected to maintain a continuous high growth trend.

In addition to the products already on the market, relying on its strong accumulation in the field of endoscopic technology, Jinhai Medical is entering the intervertebral foraminoscope and spinal minimally invasive fields, which is expected to create a second growth curve for Jinhai Medical.

In terms of technology reserves, Jinhai Medical has more than 60 patents, over 20 trademarks, and more than 30 research projects. In the "Minimally Invasive 4.0 Era," Jinhai Medical's foundational technology is fully leading, with existing technologies including three/four chip, naked-eye 3D, 4K, 3D, and fluorescence. Amid the rapid development of AI, Jinhai Medical is also actively promoting R&D technology to move towards "Minimally Invasive 5.0," with future focus on molecular probes, multispectral, intelligent navigation, AI, AR enhancement, and infrared.

With the launch of these products, the company's performance is expected to continue to achieve high growth, creating substantial investment returns for investors.