Heartway Medical Group-B (06609.HK) delivers a happy profit announcement, anticipating a first-half net profit attributable to shareholders of not less than 40 million yuan, turning losses into profits year-on-year.

The Intelligent Investment APP reported that Heartway Medical-B (06609.HK) announced that the group is expected to achieve a shareholder net profit of not less than RMB 40 million in the first half of 2025. The main reason for this turnaround from loss to profit is due to: (i) the increase in sales of newly launched hemorrhagic stroke treatment devices, as well as acute ischemic stroke treatment devices and other hemorrhagic stroke treatment devices driving revenue growth; (ii) effective cost control measures on sales and administrative costs leading to a decrease in the overall expense ratio of the group, as well as changes in the development stage of group research and development projects leading to a decrease in research and development expenses; and (iii) an increase in fair value gains on financial assets recognized in the income statement.