Robust Revenue Growth, Drastically Narrowed Losses, and Continuous Improvement in Operational Quality

In 2025, Cryofocus recorded a revenue of RMB 95.27 million, representing a surging increase of 78.0% compared to RMB 53.53 million in the same period of 2024. The loss for the year was significantly narrowed by 60.0% to RMB 44.46 million, down from RMB 111.28 million in 2024, showcasing the Company's outstanding operational efficiency and cost-control capabilities.

The Company's overall gross profit reached RMB 63.98 million, a year-on-year increase of 66.6%, while the gross profit margin was maintained at a healthy level of 67.2%. During the reporting period, Cryofocus continued to optimize its R&D efficiency. R&D expenses decreased by 58.6% year-on-year to RMB 30.44 million, primarily due to the reduction in investments following the successful NMPA approval of certain products, as well as the optimization of staff costs. This reflects the steady transition of the Company's R&D pipeline from an early-stage investment phase to a late-stage harvest phase.

Comprehensive Acceleration of the Cryotherapy Product Matrix with Respiratory Intervention as the Core Growth Engine The strong financial growth was primarily driven by the commercial volume ramp-up of the Company's cryotherapy product pipeline, which is built upon its unique liquid nitrogen cryoablation technology and advanced flexible catheter technology platforms. Notably, the respiratory intervention product pipeline delivered a stellar performance, acting as the absolute main driving force for revenue growth.

In March 2025, the Company's Malignant Stenosis Cryoablation System received approval from the National Medical Products Administration (NMPA) and was successfully commercialized in China in May of the same year, with sales volume climbing rapidly. In addition, the sales of the previously commercialized Cryoadhesion System continued to grow. Meanwhile, the Company further deepened its distribution partnership with the international medical giant Boston Scientific (BSC) in the Chinese market, which contributed considerable incremental revenue.

More notably, the Company's Asthma Cryoablation System was granted designation as a "Breakthrough Medical Device" by the U.S. Food and Drug Administration (FDA) in July 2025. This marks an international authoritative recognition of its innovative technology, laying a solid foundation for its future expansion into the global market.

Successful Share Placement Fortifies Financial Foundation to Facilitate Global Expansion

To support future R&D and market expansion, the Company successfully completed the placement of new H shares to specific investors in January 2026. A total of 5,595,000 H shares were issued, raising net proceeds of approximately HK$29.73 million. Cryofocus plans to utilize the funds primarily for the R&D, manufacturing, and commercialization of minimally-invasive interventional products related to vascular intervention, respiratory intervention, and cancer intervention, as well as to provide financial backing for the potential overseas business expansion of these commercialized products.

This financing not only bolstered the Company's cash reserves, securing a solid financial guarantee for the clinical development and global registration of subsequent high-value pipeline products—such as the Peri-Pulmonary Nodule Cryoablation System, COPD Cryospray System, Asthma Cryoablation System, and the Cryo-RDN System for resistant hypertension—but also underscored the strong confidence of professional institutional investors in the Company’s technology platform and long-term prospects.

Looking Ahead: Platform Advantages Highlighted, Striving to Become a Global Cryotherapy Leader

Leveraging its unique "One Platform, Multiple Tracks" business model, Cryofocus has built a robust product pipeline covering multiple therapeutic areas, including vascular intervention, respiratory intervention, and cancer intervention. The Company currently possesses a comprehensive pipeline comprising 25 products and product candidates, 11 of which have already been commercialized. As more products progressively enter late-stage clinical trials and the regulatory approval phase, the value of the Company's platform is expected to be continuously unlocked.

Looking ahead, Cryofocus stated that it will continue to execute its clear strategies: rapidly advancing the clinical development and commercialization of product candidates; further expanding the product portfolio based on its core technology platform; continuously investing in underlying and supporting technologies; and selectively expanding its worldwide footprint. The Company is steadily transitioning from an R&D-driven approach to a dual-engine model driven by both R&D and commercialization, taking solid steps toward its vision of becoming a "global medical device platform in the field of minimally-invasive interventional cryotherapy."