Shanghai MicroPort Endovascular Announces Leadership Transition and Strategic Update in Prospectus Filing

01

Endovastec Chairman Resigns

Sun Hongbin Takes Over

On December 15, Endovastec announced,Jonathan Chen, Chairman of the Board, and Huo Qingfu, DirectorAll have applied to resign from their respective positions as chairman of the board, director, and related positions in the board's special committees due to personal reasons. After resignation, they will no longer hold any position in the company.

Endovastec held a board meeting on December 15, agreeing to increase the number of board members from 8 to 9 and to nominateSun Hongbin, Liang Min, Liu XudongNominee for Non-Independent Director of the Third Board of Directors, ApprovedElection of Sun Hongbin as Chairman of the Third Board of Directors, and it will take effect upon the approval of the 2025 Second Extraordinary Shareholders' Meeting for his appointment as a director of the company. The term of office will commence from the date he assumes the position of company director until the expiration of the term of the Third Board of Directors.

The adjusted membership structure of each special committee is as follows:

Endovastec's announcement shows that all three nominated non-independent director candidates are executives from the "MicroPort" system.

Endovastec's New Chairman Sun Hongbin, Born in 1975, Former Assistant Manager at KPMG Huazhen Accounting Firm,CFO and General Manager of Otsuka (China) Investment Co., Ltd., Chairman of Shanghai MicroPort Medical Robot (Group) Co., Ltd.，Currently serves as the Chief Financial Officer of MicroPort Investment Holdings Limited, Chief Financial Officer of MicroPort Medical Co., Ltd., Chairman of the OMC, Rotating Chairman of the CEC, and member of the GMC and ICC.。

Liang Min, who was nominated as a non-independent director together, was born in 1985 and has served as a senior sales representative at Johnson & Johnson Medical (China) Ltd., among other roles. She is currently the head of overseas commercial operations at MicroPort Investment Holdings Limited and a director of MicroPort Robotics. Liu Xudong, born in 1975, is currently the executive vice general manager of Shanghai MicroPort MedLinkMedConnect Health Management Co., Ltd.

It is worth noting that,Jonathan Chen, who has just resigned, did not serve as the chairman of Endovastec for a long time.In November 2023, Peng Bo, founder and chairman of Endovastec, retired. Jonathan Chen, who previously served as Chief International Business Officer of MicroPort, Chairman of the Continental Heart Rhythm Management Committee, and member of the Continental Orthopedics Executive Committee, took over as chairman of Endovastec. This transition occurred just two years ago.

02

Price "Earthquake", Centralized Procurement Under Pressure

Can Endovastec Make a Comeback?

Endovastec went public on the Shanghai STAR Market in 2019 as the first subsidiary of MicroPort to be spun off and listed. It mainly focuses on aortic and peripheral vascular interventional medical devices and is the most profitable subsidiary of MicroPort.

Endovastec Experienced a Roller-Coaster Ride Last Year. Its Core Product Was Publicly Inquired by the National Healthcare Security Administration, with a Price Drop of 40%. In the Same Year, Endovastec Lost Its High-tech Enterprise Status and Faced a Tax Back Payment of Over 60 Million Yuan. Amid These Changes, The Growth Rate of Endovastec's Performance Plunged to Its Lowest in History from Previous High Growth.

Endovastec's financial report shows that the total operating revenue in 2024 was 1.206 billion yuan, a slight increase of 1.61% year-on-year; the net profit attributable to parent company was 502 million yuan, a slight increase of 1.96% year-on-year.Compared with the high growth rate of over 30% in most of the past few years, the change is striking.

After undergoing adjustments and business expansion, Endovastec's revenue returned to high growth in the third quarter of this year.

In the first three quarters of 2025, its operating revenue was 1.015 billion yuan,An increase of 4.66% year-on-yearIn which the third quarter achieved revenue of 300 million yuan, representing a year-on-year increase of 65%.Revenue Rises, but Net Profit Still Under PressureNet profit attributable to shareholders in the first three quarters was 429 million yuan,A decrease of 22.46% year-on-year。

Facing high regulatory pressure, Endovastec's core business has also encountered the "onslaught" of centralized procurement. In February this year, the Hebei Medical Insurance Bureau issued the "Notice on the Introduction of Two Types of Medical Consumables: Thoracic Aortic Stents and Abdominal Aortic Stents."This is the first time at the provincial level that two types of aortic stents have been separately included in the scope of centralized procurement.。

However, 10 months have passed, and the specific coverage areas and official announcements have yet to be released.

Although the centralized procurement has not officially started, for Endovastec, preparatory work must be carried out in advance. Facing high regulatory pressure and a significant price reduction in China,Endovastec Sees Overseas Market Layout as a Breakthrough for Performance.

Endovastec's Overseas Revenue in H1 2025 Reached 123 Million Yuan, a Year-on-Year Increase of 77.05%; Overseas Sales Revenue in the First Three Quarters of 2025 Increased Year-on-YearMore than 65%，Endovastec Obtains 11 New Overseas Product Registrations; Hector Thoracic Aorta Multibranch Stent Graft Receives EU Customized Certificate, Bringing Total Overseas Registrations to 100+Among them, 5 CE certificates, overseas business expanded to 7 new countries, and currently has accumulated in47 overseas countries in Europe, Latin America, Asia, and AfricaEntering clinical application.

Currently, China's aortic endovascular stents are still in the early stage of development, with relatively low screening and treatment rates for related diseases. From the perspective of the ratio of aortic interventional procedure volumes to the corresponding total population, China still lags significantly behind developed countries such as the U.S. and Japan.

According to Frost & Sullivan analysis, the market size of China's aortic endovascular stent grafts was RMB 2.4 billion in 2021, calculated based on the ex-factory price of products.

Products in the aortic intervention field mostly haveLong R&D cycle, high investment, complex registrationThe characteristics of the product make its technical barriers difficult to break in a short period. In China's aortic interventional treatment market, companies such as Medtronic, Gore, Endovastec, and Lifetech Scientific collectively hold over 90% of the market share, among which...Endovastec accounts for more than 30% and owns the only domestically approved on-the-market stent system that can be used in thoracic aortic dissection surgeries.

After a major price adjustment in the aortic intervention market last year, coupled with the ongoing advancement of centralized procurement, foreign brands also face pricing pressure. Behind every challenge often lies a great opportunity. Endovastec, having weathered its darkest hour, still possesses the confidence to break through the mire, thanks to years of technical and product accumulation.

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