HK Stock Connect Insight | TH MEDICAL-B (02697.HK): Added to the Stock Connect on Sept 7, southbound stake rises to 3.81%

NewTimeSpace News:True Health Medical-B (02697.HK) published a voluntary announcement on 12 October disclosing significant progress in research on extracorporeal liver perfusion support therapy using an organ perfusion system. Building on its self-developed organ perfusion system and working with an 8-gene-edited medical donor pig liver developed by Yunnan Agricultural University, the company completed six preclinical trials of extracorporeal cross-circulation perfusion support therapy in a non-human primate model of acute liver failure, setting a record of 144 hours of stable liver function perfusion support, with all six trials exceeding 72 hours.

According to the announcement, animal vital signs remained stable throughout the trials, the donor livers continued to secrete bile, core biochemical indicators stayed broadly stable, and immune rejection was controllable, with no hyperacute or acute rejection injury. The company said it will continue to advance the technology development and applied research of organ perfusion systems, and work with medical institutions and research institutes to explore the feasibility of clinical translation.

In the Hong Kong market, the share price of True Health Medical-B has fallen sharply since early October. The stock closed at HK$278.000 on 8 October and HK$183.000 on 9 October, down 34.17%; and at HK$90.750 on 12 October, down 50.41%. As of 15:30 on 30 October, the shares stood at HK$47.100, down 5.99%.

On southbound holdings, the company was added to the Stock Connect list effective 7 September 2026. According to Choice data, southbound holdings stood at 6,380 shares on 9 September, equal to 0.01% of issued shares, and have continued to build up since, with purchases of 551,000 shares, 314,500 shares and 466,000 shares respectively on 14, 15 and 16 October, before reaching a peak of 1.5793 million shares, or 4.42%, on 20 October, and standing at 1.3645 million shares, or 3.81%, on 29 October.

On fundamentals, the most recent results are the interim results for the six months ended 30 June 2026, published on 28 August and reported in renminbi. Revenue was RMB5.671 million, up 3178.0% year on year; gross profit was RMB4.363 million, with the gross margin at 76.9%, up 9.8 percentage points from 67.1% a year earlier; and loss for the period widened to RMB60.424 million from RMB56.734 million, with basic and diluted loss per share of RMB1.88. By segment, sales of surgical robots generated RMB5.160 million, or 91.0% of total revenue, and sales of consumables RMB408,000. The company attributed the revenue increase mainly to higher delivery volumes of its core TH-S1 surgical robot. Administrative expenses were RMB32.251 million, up 94.0% year on year, mainly from listing-related expenses booked in the period, while R&D expenses were RMB26.931 million, up 15.2%. As at end-June, the Group held cash and bank balances of RMB460 million, up RMB278 million from the end of 2025, mainly from the net proceeds of the Global Offering.