STAR SPORTS MED (Star Sports Medicine Co., Ltd.) reported solid top-line growth for the six months ended 30 June 2026, driven by stronger domestic penetration and accelerated international expansion.
Financial Highlights • Revenue reached RMB 163.43 million, up 21.60% year on year. • Gross profit increased 21.79% to RMB 121.30 million; gross margin edged up to 74.2% (H1 2025: 74.1%). • Reported net profit fell 26.11% to RMB 27.40 million, weighed by RMB 20.71 million in one-off listing expenses. • Excluding listing and share-based payment charges, adjusted net profit rose 24.30% to RMB 48.90 million. • Cash and cash equivalents expanded to RMB 819.64 million (31 Dec 2025: RMB 116.85 million), reflecting HK$788.44 million of IPO proceeds received in May. • Debt-to-asset ratio improved to 9.1% (31 Dec 2025: 20.2%); interest-bearing bank borrowings decreased to RMB 20.22 million.
Segment Performance • Medical implants: Revenue climbed 26.0% to RMB 125.44 million, supported by suture anchors, interference screws and meniscus repair systems. • Surgical equipment & consumables: Sales rose 9.0% to RMB 37.82 million, underpinned by imaging and dynamic platform products. • Other revenue (utility carts and regenerative repair products): RMB 0.18 million, +58.6%.
Geographical Mix • Domestic (Chinese mainland): RMB 122.73 million, +11.0%. • Overseas markets: RMB 40.70 million, +70.6%, now 24.9% of total turnover. The company obtained 200+ regulatory approvals across 60+ jurisdictions, with new registrations in Myanmar and Singapore.
Cost Structure • Selling & distribution expenses rose 27.4% to RMB 42.38 million, reflecting a larger salesforce. • Administrative expenses jumped to RMB 32.73 million (H1 2025: RMB 9.93 million) mainly due to one-off listing costs. • R&D investment reached RMB 23.74 million, equating to 14.5% of revenue; the R&D team expanded to 89 professionals.
Balance Sheet & Cash Flow • Net cash from financing activities totalled RMB 638.14 million post-IPO. • Capital expenditure amounted to RMB 40.56 million, largely for the Suzhou smart factory; outstanding capex commitments stood at RMB 22.51 million. • Wealth-management products held at period-end totalled RMB 190.45 million, representing 13.3% of total assets.
Operational Developments • Product pipeline: 63 approved devices, including 27 Class III products; key projects in cordless imaging systems, arthroscopic surgical robots and regenerative tissue scaffolds progressed through testing or registration phases. • The integrated cordless handheld shaver system (WP-100) earned “First (Set) Recognition” in Beijing, enhancing market credibility. • Sports medicine prescription & rehabilitation system secured regulatory clearance and entered commercial rollout.
Capital Market Actions • The company issued 8.42 million H shares in its May 2026 IPO at HK$98.50 per share, raising net proceeds of HK$788.44 million. • Approximately HK$25.16 million (3.2% of proceeds) had been deployed by 30 June 2026, primarily for smart-factory construction and R&D; the remainder is earmarked for ongoing expansion, product development and working capital needs.
Governance & Subsequent Event • All directors confirmed compliance with the Hong Kong Listing Rules’ Model Code on securities dealings. • On 3 August 2026, the Board approved a new 2026 Share Incentive Scheme, pending shareholder approval. • No interim dividend was declared for H1 2026.
Outlook Management expects continued demand growth for sports medicine devices, underpinned by China’s ageing demographics, rising healthcare expenditure and expanding medical insurance coverage. Strategic priorities include broadening the product portfolio, deepening domestic hospital penetration and accelerating global market penetration while enhancing manufacturing capacity and talent development.