True Health Medical (02697) has reached a strategic cooperation with General Technology Liaoning Pharmaceutical to jointly expand the minimally invasive treatment market for tumors in Northeast China.

On August 25, Zhenjiankang Medical (02697) issued a voluntary announcement, stating that a strategic cooperation framework agreement was signed with General Technology Liaoning Pharmaceutical Co., Ltd. (hereinafter referred to as "General Technology Liaoning Pharmaceutical") in Shenyang on August 22. Both parties will focus on the three northeastern provinces, collaborating on the construction of a minimally invasive diagnosis and treatment system for tumors, compliant operation of equipment, and enhancement of specialty capabilities. They will adopt models such as co-construction of specialties, equipment technical services, and operational leasing to promote the standardized implementation of minimally invasive interventional techniques for tumors. The gap in supply and demand for cancer treatment in Northeast China This strategic layout, based in the three northeastern provinces, aptly targets a key area in China where cancer rates are high. According to data from the National Cancer Center, approximately 4.8247 million new malignant tumor cases are expected in China in 2025, ranking first globally. Data released by the Liaoning Provincial Center for Disease Control and Prevention in April 2026 indicates that the cancer incidence rate in the province will be 412.68 per 100,000 in 2025, with an annual growth rate of 2.33% for malignant tumor incidence among urban residents from 2012 to 2024. The high incidence of tumors in Northeast China is compounded by two main factors. The first is aging. Cancer is a disease highly associated with age. The "China Statistical Yearbook 2025" and Jilin Province's statistical bulletin indicate that the population aged 65 and older in Liaoning accounts for 21.9%, the highest in the country; Jilin is at 20.5%, and Heilongjiang at 19.4%. All three provinces far exceed the national average, fundamentally increasing the overall risk of tumor incidence. The second is regional prevalence. According to the latest research from the Chinese Center for Disease Control and Prevention, the lifetime risk of lung cancer for residents in Northeast China reaches 7.86%, the highest among the six major regions in the country, significantly above the national average of 6.52%. Additionally, colorectal cancer, female breast cancer, and thyroid cancer also rank among the most prevalent cancers in Northeast China, highlighting the region-specific cancer profile. The large patient base combined with deep aging forms a solid foundation for the demand for cancer diagnosis and treatment in Northeast China. However, the strong demand does not correspond to sufficient coverage on the supply side. Minimally invasive interventional procedures such as percutaneous biopsy and tumor ablation, which highly depend on precision equipment and the experience of doctors, are still far from being widespread in county-level and municipal hospitals, where there are long-standing challenges of equipment shortages, technical gaps, and talent scarcity. The disconnect between demand and supply constitutes a definitive market gap. Empowering technology and implementing cooperation General Technology Liaoning Pharmaceutical is the only provincial-level platform company established in Liaoning Province under the crucial state-owned enterprise "China General Technology (Group) Holding Limited." For equipment manufacturers, partnering with such a central enterprise provincial platform offers much more than just an additional sales channel. Through this company, Zhenjiankang has secured a compliant procurement channel targeted at public hospitals within Liaoning, gained access to the pharmaceutical commercial network of central enterprises in the three northeastern provinces, and obtained a trust foundation for long-term cooperation backed by central enterprise credit. According to the agreement, the cooperation between both parties is not merely about equipment procurement but aims at the systematic output of minimally invasive tumor diagnostic and treatment solutions. Zhenjiankang's integrated therapeutic capabilities in percutaneous surgery and ablation procedures in the Siasun Robot & Automation field will be introduced into the Northeast market through models such as specialty co-construction, equipment technical services, and operational leasing. Before the project launch, regulatory approvals from health and medical insurance authorities will be completed to ensure compliance, clearing the institutional barriers for subsequent scaling. The announcement indicated that this cooperation will accelerate the large-scale implementation of the company's self-developed Siasun Robot & Automation for minimally invasive tumor surgeries and specialty solutions in Northeast China, creating replicable models for tumor specialties and empowering regional medical upgrades. The board believes that this cooperation is beneficial for both parties to complement each other's strengths, enhancing the company's market influence and aligning with the interests of the company and all shareholders. Accelerating national layout expansion As a pioneer and leading enterprise in the R&D and commercialization of percutaneous surgery and ablation procedures using Siasun Robot & Automation in China, Zhenjiankang Medical listed on the Hong Kong Stock Exchange this June as the "first stock for percutaneous surgery Siasun Robot & Automation." The company has independently developed multiple products that have been granted Class III medical device registration certificates by the National Medical Products Administration, with the percutaneous surgery navigation positioning system recognized as a domestic first, and the navigation-guided microwave ablation system acknowledged as a global first. The integrated minimally invasive diagnostic and treatment solutions for precise lesion localization and ablation therapy are already poised for mature commercialization. The People's Daily has praised it as "the first locally listed company in the Qianhai Free Trade Zone and the first listed biomedical company in Macau." As of June 1, 2026, the companys products have been adopted by nearly a hundred medical institutions nationwide, with over 7,200 surgeries completed and a 100% technical success rate; 6 devices were delivered in 2025, with revenue skyrocketing from 1.791 million yuan in 2024 to 12.178 million yuan, representing an approximate year-over-year increase of 5.8 times, with a gross margin of 76.3%. From "obtaining certification" to "installing equipment," and subsequently to consumable repurchases, the commercial closure is rapidly forming. From the Guangdong-Hong Kong-Macau Greater Bay Area to Northeast China's old industrial base, from the Qianhai Cooperation Zone to the central enterprise provincial platformZhenjiankang Medical's national layout is making significant strides across thousands of kilometers. The commercialization landscape for minimally invasive tumor surgeries using Siasun Robot & Automation is extending from coastal areas to inland regions, advancing from technological hubs into high-demand areas. As the demonstration effects of benchmark projects are gradually released, and as the specialty co-construction model transitions from single points to replication, Zhenjiankang's "solution for minimally invasive tumor diagnosis and treatment" is expected to establish roots in more high-demand areas. The scarce value of being the "first stock for percutaneous surgery Siasun Robot & Automation" is becoming increasingly recognized in more regional markets.