1H22 Financial Performance slide image

1H22 Financial Performance

Key business updates of 1H2022 Continued growth during the pandemic • Despite the impact of the epidemic, the Company still achieved notable growth In the first half of the year, revenue was RMB6,975 million, marking a y-o-y growth of 12.0%; net profit attributable to the parent was RMB1,459 million, marking a y-o-y growth of 20.6% • • Embracing VBP Seizing emerging the opportunities of national and regional VBP, the Company developed new hospital customers, expanded its market boosted sales, and increased its market share Tapped into the cross-selling and up-selling potential of existing customers to offset the impact of revenue reduction on sales from volume-based procurement Margin improvements Affected by the price reduction from volume- based procurement and changes in product mix, the gross profit margin decreased • Improved operating margins through cutting cost and optimization of selling and administration expenses Strengthened abilities to withstand risks Fa E China's leading medical device conglomerate WEGO威高 • • Continued improvement of product portfolio Continued to expand R&D efforts. In 1H 2022, the Company obtained 55 new patents in China, had 162 patents under application, and received 30 new product registration certificates Continued to optimize the product portfolio through acquisition, cooperation with external parties, and active expansion into new business portfolio . . • Global footprint Established overseas business department based on overseas portfolio to better allocate global resources to organize R&D, production, sales and customer service • Strategically screened and planned global development opportunities, and explore overseas markets through production, marketing, branding, distribution, capital markets, etc. Digitalization strategy Established a digital transformation office to continuously promote the Company's digitalization strategy Operational level: Digitally upgrade the manufacturing industry, reduce production costs, and improve operational efficiency Customer service: Medical information solutions 3
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