Cryofocus Announces 2026 Interim Results: Loss Narrows 37.9% to RMB 16.9 Million, Gross Margin Improves to 68.5%

HONG KONG, August 28, 2026 - (ACN Newswire) - Cryofocus Medtech (Shanghai) Co., Ltd. (“Cryofocus” or the “Company,” stock code: 6922.HK), a leading innovative medical device platform specializing in minimally-invasive interventional cryotherapy, today announced its interim results for the six months ended June 30, 2026. During the Reporting Period, the Company continued to expand its product pipeline, with a significant 37.9% narrowing of its loss for the period to RMB 16.9 million. Gross profit margin improved to 68.5% from 67.1% in the same period last year, while cash and cash equivalents surged 69.2% to RMB 59.3 million compared to the end of 2025, underscoring enhanced operational quality and financial resilience.

Product Pipeline Continues to Expand, Commercial Footprint Widens

As a pioneer in the field of minimally-invasive interventional cryotherapy in China, Cryofocus has established a comprehensive product portfolio covering both vascular intervention and natural orifice transluminal endoscopic surgery (NOTES). As of June 30, 2026, the Company had a total of 25 products and product candidates, of which 11 had been commercialized. These include the Atrial Fibrillation Cryoablation System, Malignant Stenosis Cryoablation System, Cryoadhesion System, Bladder Cryoablation System, and Pulmonary Nodule Localization Needle, among others.

In January 2026, the Company’s Endoscopic Additional Working Channel Catheter received approval from the Zhejiang Medical Products Administration, further enriching its commercial product matrix. Meanwhile, several high-value product candidates have entered the critical confirmatory clinical trial stage and are expected to receive approvals sequentially between 2027 and 2029. These include:

- Vascular Intervention:

Cryofocus Renal Denervation System (Cryo-RDN System): Designed to be the world’s first cryoablation product specifically targeting hypertension. It was granted Breakthrough Device designation by the U.S. FDA in December 2022.

- Respiratory Intervention:

COPD Cryospray System, Peri-Pulmonary Nodule Cryoablation System, Asthma Cryoablation System, and Benign Stenosis Cryoablation System: These products form a matrix of investigational devices targeting the same hospital department. As they receive approvals in the coming period, the synergistic effect of this product matrix is expected to amplify.

The Company’s R&D team comprises 40 professionals. As of June 30, 2026, Cryofocus held 179 patents and 35 patent applications domestically and internationally, continuously deepening its technological moat.

Loss Narrows Significantly, Gross Margin Improves Against Headwinds

Alongside steady progress in its product pipeline, the Company delivered impressive financial metrics. For the first half of 2026, Cryofocus recorded revenue of RMB 40.7 million and gross profit of RMB 27.9 million. The loss for the period amounted to RMB 16.9 million, a decrease of RMB 10.3 million or 37.9% from RMB 27.2 million in the same period of 2025.

Against the backdrop of an active adjustment in revenue scale, the Company’s overall gross profit margin rose from 67.1% to 68.5%, primarily driven by process improvements and optimizations for certain products. This indicates that structural improvements in the product mix and enhanced production efficiency have effectively offset the impact of revenue fluctuations on profitability.

Comprehensive Cost Optimization Boosts Operating Efficiency Significantly

The substantial narrowing of losses was underpinned by the Company’s holistic cost control measures:

- Administrative expenses decreased by 34.0% from RMB 33.7 million to RMB 22.3 million, mainly due to reductions in staff costs and share-based payments.

- Selling and distribution expenses fell by 14.5% from RMB 9.2 million to RMB 7.8 million.

- Research and development expenses declined by 15.1% from RMB 17.9 million to RMB 15.2 million.

- Finance costs dropped by 22.7% from RMB 1.1 million to RMB 0.8 million.

Furthermore, other income and gains surged over 550% from RMB 0.5 million to RMB 3.2 million, primarily attributable to an increase in government grants. The combined effect of comprehensive cost optimization and growth in non-recurring income enabled the Company to achieve a sharp compression of losses despite a temporary decline in revenue.

Cash Reserves Surge 69.2%, Strengthening Capital Position

As of June 30, 2026, the Company’s cash and cash equivalents stood at RMB 59.3 million, an increase of RMB 24.2 million or 69.2% from RMB 35.0 million as of December 31, 2025. This growth was mainly driven by the completion of an H-share placing in January 2026, under which the Company issued 5,595,000 H-shares and raised net proceeds of approximately HK$29.73 million.

Additionally, the Company’s current ratio improved from 1.5 to 1.7, the quick ratio rose from 1.0 to 1.2, and the gearing ratio decreased from 64.7% to 61.8%, reflecting enhanced short-term solvency and overall financial safety.

Outlook: Committed to Becoming a Global Minimally-Invasive Interventional Cryotherapy Medical Device Platform, Bringing Benefits to Patients and Physicians Worldwide

In the first half of 2026, the Company proactively adjusted its sales strategy to align with evolving industry demands, leading to a temporary dip in revenue. However, earnings quality improved markedly, signaling a positive trend of “structural revenue adjustment with clear profit elasticity.”

Looking ahead, the Company will:

- Rapidly advance the clinical development and commercialization of its product candidates based on cryotherapy technology;

- Continue to focus on minimally-invasive interventional cryotherapy and further expand its product portfolio leveraging its technology platform;

- Persistently research and develop various underlying and supporting technologies; and

- Selectively expand its global footprint.

With high-value products such as the Cryofocus Renal Denervation System, COPD Cryospray System, and Peri-Pulmonary Nodule Cryoablation System entering the regulatory submission and launch cycle, coupled with a significantly strengthened cash position and continuous loss reduction, Cryofocus is steadily accelerating toward its vision of becoming a “global minimally-invasive interventional cryotherapy medical device platform.”