Shanghai, China - Recently, MicroPort Scientific Corporation (00853.HK, hereinafter referred to as "MicroPort Group"), a subsidiary of Shanghai MicroPort MedBot (Group) Co., Ltd. (02252.HK, hereinafter referred to as "MicroPort^® MedBot^®" or "the Company") based in Shanghai, released the performance of the Company and its subsidiaries (hereinafter referred to as "the Group") for the year ended December 31, 2023 (hereinafter referred to as the "reporting period").

In 2023, the Group recorded revenue of RMB 104.6 million, a strong growth of 384.2% compared to the previous year's revenue of RMB 21.6 million, primarily driven by the sales growth brought about by the comprehensive commercialization of the Group's core products, Toumai^® and Honghu. The Group's leading technological advantages and commercial strength are powerful engines driving continuous revenue growth.

Benefiting from the revenue growth during the reporting period, successful implementation of strategic focus, and cost reduction measures, the Group's net cash outflow from operating activities decreased by 42% from RMB 1,158 million for the year ended December 31, 2022 to RMB 670 million for the year ended December 31, 2023.

Accelerated Bidding of Core Products, Consolidating Strong Leading Position

The multi-departmental application of the Group's core product, Toumai^®, received NMPA approval in October 2023, marking a new chapter in its commercialization process. To date, Toumai^® has accumulated nearly 20 successful bids in multiple provinces across the country, with several of these being top-tier Grade 3 hospitals in China, further solidifying Toumai^®'s strong leading position in the domestic endoscopic surgical robot industry and laying a solid foundation for its large-scale commercial application.

▲Toumai^® Laparoscopic Surgical Robot

Meanwhile, facing intense competition in the domestic market, Honghu maintained its leading position in its industry sector by contributing steady sales revenue during the reporting period. Through international cooperation, the Mona Lisa prostate puncture robot, deployed in the field of percutaneous puncture surgery, obtained NMPA approval in May 2023 and achieved one unit sale and successfully completed one commercial surgery during the reporting period. The R-ONE^™ Vascular Interventional Surgical Robot, positioned in the field of pan-vascular interventions, has rapidly accumulated several intended orders since its approval in December 2023, demonstrating promising commercial potential.

Formal Start of Overseas Business, Steady Progress in Global Strategy

The exploration of Toumai^® in overseas markets had a promising start during the reporting period, with the first overseas sales order being achieved, marking the first overseas sale of a domestic endoscopic surgical robot. To date, Toumai^® has successfully completed dozens of human clinical surgeries overseas, signifying a significant milestone in its transition from domestic foothold to international market penetration and clinical application, with profound implications for the Group's development and globalization strategy.

As the first domestically produced surgical robot to go overseas, Honghu's overseas business accelerated during the reporting period, achieving commercial breakthroughs in leading medical equipment manufacturing countries globally, including the United States and Germany. To date, Honghu has accumulated 15 overseas sales orders, completed over a hundred robot-assisted surgeries, and successfully performed multiple consecutive surgeries.

▲Honghu Orthopedic Surgical Robot

By participating in international industry conferences and exhibitions, showcasing flagship products, and sharing experiences in remote exploration and innovative concepts, the Group has been able to establish and enhance brand recognition and academic influence in international markets. Representing domestic surgical robots to international clinical experts has demonstrated the technological innovation strength of "Made in China," helping more overseas medical professionals, scholars, and patients understand and delve into the innovative medical technology applications and development status of China in the field of minimally invasive surgery. With the continuous enhancement of our international academic influence in this field, we will eventually unleash the enormous potential for commercial transformation of our products in overseas markets.

Coordinated Efforts in Multiple Tracks, 5G Applications Leading Industry Upgrade

The Group has been strategically positioned in six major tracks and has deepened its efforts over the years. During the reporting period, the Group accelerated the conversion of achievements, obtaining a total of 8 domestic and international registrations, approvals, and certifications. To date, most of the tracks in the layout have seen innovative products approved for listing, steadily meeting commercial expectations and providing robotic intelligent surgical total solution. The Group's cross-track layout in the field of surgical robots has shown preliminary synergies in technical integration, sales driving, and integrated diagnosis and treatment.

▲Toumai^® 5G remote human clinical surgery explorations

Remote healthcare using 5G technology has been a continuous exploration direction for the Group. With comprehensive mastery of underlying technologies, including Toumai^®, Honghu, and R-ONE^™, multiple surgical robot products have successfully integrated with 5G technology. To date, Toumai^® has completed over 120 5G remote human clinical surgery explorations worldwide, with a success rate of 100%. Toumai^® has also achieved a series of breakthroughs in these surgeries - the farthest surgical distance, the most complex procedures, the widest indications, the highest surgical difficulty, and the creation of the most records (nearly 20 first-ever remote surgeries and records nationwide and globally), leading innovation in the development and industrial upgrade of the Chinese and global surgical robot industry.

Crossing The Threshold of Large-Scale Surgeries, Extensive Physician System Training

Aligned with a clear and defined commercialization strategy, the Group continued to advance clinical surgeries and physician training for its core products during the reporting period. As of mid-March 2024, the Toumai^® robot has completed over 2000 human clinical surgeries in nearly 90 hospitals domestically and internationally in urology, general surgery, thoracic surgery, gynecology, and pediatric surgery. Over 1600 of these surgeries were high-difficulty Grade 4 surgeries, covering nearly 300 types of procedures, with nearly 50 "first-ever in China" cases. The Honghu robot has completed nearly 900 robot-assisted clinical surgeries in orthopedics, joint surgery, and sports medicine in over 50 hospitals domestically and internationally, including several high-difficulty robot-assisted surgeries, demonstrating high stability in assisting and high clinical application value.

▲Toumai^®  human clinical surgery

To date, the Group has established over 30 Toumai^® clinical application and training centers and nearly 20 Honghu clinical application and training centers nationwide, conducting numerous clinical system training and technical guidance activities for surgical robots, enhancing physician exchanges and patient education, accumulating physician feedback, and laying a solid foundation for further enhancing the recognition of the Group's innovative products and subsequent large-scale commercialization.

Dr. He Chao, Executive Director and President of MicroPort^® MedBot^®, stated that 2023 was a year of comprehensive acceleration for MicroPort^® MedBot^®'s commercialization. The entire company has always held the belief of "Make Surgery Easier, Safer and Less Invasive" actively responding to the increasingly competitive industry, achieving milestone breakthroughs in product globalization, commercialization, and innovative research and development. In the future, we will continue to focus on enhancing product market competitiveness and coverage, meeting clinical needs with a diverse product portfolio, driving sustained growth in sales revenue both domestically and internationally. Additionally, we will further enhance the company's innovation capabilities, rapid conversion of research and development achievements, deeply explore, optimize, and improve operational efficiency, creating greater value for the Company's shareholders and the industry.

Mr. Sun Hongbin, Chief Financial Officer of MicroPort^® and Non-Executive Director and Chairman of MicroPort^® MedBot^®, stated that in 2023, amidst the constantly changing and fiercely competitive domestic and international market environment, the Company steadily progressed in commercial transformation and overseas strategic layout, achieving significant business development and further consolidating the Company's leading position in the domestic surgical robot industry. In the future, the Company will always be guided by the needs of patients and physicians, continuously strengthen internal management and external expansion, continually reduce medical costs, enhance research and development innovation capabilities, and provide more high-quality and accessible robotic intelligent surgical total solution that can prolong and reshape life for global patients and physicians.