Huajian Healthcare's AI Medical Mission: Building a Path to Healthcare Equity on the Foundation of Independent Innovation

As the nation’s 'AI+' initiative gains momentum and the 'Healthy China 2030' Plan explicitly calls for 'promoting equal access to basic public health services,' Huajian Medical (01931.HK) understands deeply that the ultimate value of AI in healthcare lies not only in technological breakthroughs but also in leveraging technology to address the social challenge of uneven distribution of medical resources.to make high-quality medical services accessible across geographic barriers and benefit all citizens.

As a global high-tech intellectual property capital operation platform specializing in the life sciences sector, we uphold the core philosophy of 'From Knowledge to Capital.' With the strategic acquisition of Glorious Healthcare (300451.SZ), we are aligning AI technologies with the national '4128' Digital Health Framework's core objectives of 'convenience for the people' and 'grassroots empowerment,' fulfilling our brand commitment of 'benefiting the country, the people, and the world.'

The uneven distribution of medical resources has long been a critical challenge hindering the development of China’s healthcare system. According to data from the National Health Commission, in 2023, tertiary hospitals accounted for only 10% of all hospitals nationwide but handled 62% of outpatient visits. The weak service capacity of grassroots medical institutions has led patients to seek treatment at large hospitals even for minor illnesses. Against this backdrop, the National Health Commission introduced the '4128' Digital Health Framework, prioritizing 'convenience for the people' and 'medical assistance' among its four key goals. The 'Implementation Opinions on Promoting and Regulating the Application of AI+Healthcare' mentioned 'grassroots' eleven times, providing clear guidance for the development of AI healthcare toward'rooting down and empowering upward'.

We firmly believe that AI is not merely a cold technical term but a 'golden key' to solving the issue of equitable access to healthcare.

In 2025, the State Council issued the 'Guiding Opinions on Deepening the Implementation of the AI+ Initiative,' explicitly requiring a significant improvement in the capabilities and efficiency of primary-level medical and health services. This aligns closely with our strategic mission. As a committed practitioner responding to national strategy, we achieve this throughM&A integration, technological innovation, and capital empowerment.Building an independently controllable AI medical ecosystem, making AI technology the 'diagnostic assistant' for grassroots doctors and the 'health guardian' for ordinary citizens, is not only a mission bestowed upon us by the times but also our unwavering pursuit of public welfare.

In November 2025, we completed the strategic acquisition of B-Soft through our wholly-owned subsidiary Hangzhou Better. This was not a simple commercial move but a crucial step in elevating our AI healthcare strategy.

B-Soft has been deeply engaged in medical informatization for nearly 30 years, serving more than 7,000 medical institutions, managing 300 million resident health records and 100 million electronic medical records, with its public health projects covering over 370 districts and counties nationwide. The vast amount of standardized medical data it has accumulated is preciselythe core cornerstone for the implementation of AI in healthcare.。

We understand that the realization of AI's value in healthcare hinges on the deep integration of 'data + algorithms + scenarios.' Post-acquisition, we deeply restructured Huajian’s AI algorithm empowerment system with B-Soft's medical informatization capabilities: On one hand, we leveraged B-Soft’s real clinical data to accelerate AI algorithm iteration, making the technology more aligned with grassroots diagnostic needs; on the other hand, we infused advanced AI capabilities into products such as its HI-HIS system and BsoftGPT medical large model, creating a 'clinical intelligence middleware' that covers the entire diagnostic process. Notably, the AI Key Patient Precision Tracking System (APTS), jointly developed with Zhejiang University, achieved a significant 42% increase in early diagnosis and treatment rates at pilot hospitals. It was selected as part of Zhejiang Province's 'Digital Intelligence Excellence Products' and will be rapidly deployed to county-level healthcare consortia and community health centers via our IVD distribution network (K1) covering 1,711 tertiary hospitals, enabling grassroots patients to benefit from precise AI-assisted diagnostics.

This synergy vividly demonstrates the practical implementation of the national '4128' architecture's requirement for 'two-tier deployment and eight areas of support.' Using the 'Huajian Ecosystem' intellectual property aggregation platform (K2) as a link, we coordinated upstream and downstream resources in the industry chain, deeply integrating B-Soft's informatization services with grassroots healthcare scenarios. We promoted interoperability and sharing of test results, digital management of chronic diseases, and truly realized the goal of 'letting data do the running so people don't have to.'

In 2025, our tangible share repurchase actions demonstrated our firm confidence in the AI healthcare sector.

On November 24, Huajian Medical completed the repurchase of 2.027 million shares at a cost of approximately HKD 12.4723 million, with an average transaction price of HKD 6.15 per share. This marks the seventh share repurchase implemented within the month. On the same day, Huajian Medical's stock closed at HKD 6.38 per share, up 13.32%.

As of now,We have cumulatively spent HKD 97.4638 million on share repurchases year-to-date, including HKD 69.3723 million in November alone.The share repurchase is not only due to the current share price failing to fully reflect the company’s business prospects and intrinsic value but also stems from our long-term confidence in the development of the AI healthcare industry and our strong belief in the strategy of “driving sustainable profitability through intelligent capital.”

This confidence comes from the vast potential of the AI healthcare market. According to Frost & Sullivan's "White Paper on the Medical Intelligence Industry," the market size of AI healthcare solutions is expected to exceed RMB 20 billion by 2025 and surpass RMB 100 billion by 2030, with a compound annual growth rate (CAGR) of 43.2%. Additionally, it comes from our value loop advantage of “financing - mergers and acquisitions - integration - continuous profitability”: Through global intellectual property securitization capabilities (RWA/K3), we can provide innovative capitalization pathways for clinically validated AI technologies, reinvesting in R&D and grassroots promotion; via the “K×A” (knowledge × algorithm) empowerment model, we enhance both the technological and social value of Chuangye Huikang.

According to the authorization from the annual general meeting of shareholders held on June 30, Huajian Medical is authorized to repurchase up to 10% of its total 162 million shares. As of November 24, it has already repurchased 14.433 million shares,representing 0.89% of the issued shares at the time the repurchase resolution was passed.Going forward, Huajian Medical will steadfastly implement its share repurchase plan.

"Co-construction and sharing, universal health" serves as the strategic theme of Healthy China and our guiding principle. Through our AI healthcare initiatives, we are fulfilling the commitment to “benefit the nation, the people, and the world” across three dimensions:

At the primary healthcare level,we are promoting the deployment of AI-assisted diagnostic systems to provide grassroots doctors with intelligent support in common disease diagnosis, prescription review, and follow-up management. This helps address the shortage of medical professionals at the grassroots level, enabling patients in rural and remote areas to access care for minor illnesses locally and facilitating early detection of serious conditions;at the public health level,AI technologies are being utilized to optimize chronic disease management and early screening for major illnesses, supporting a shift from a “treatment-centered” approach to a “health-centered” one, thereby reducing societal healthcare burdens;at the industrial development level,we are establishing an independently controllable AI medical technology system to advance the healthcare industry toward intelligence and sophistication, fostering new productive forces and contributing to national technological self-reliance.

From the strategic acquisition of Huicong to the firm confidence demonstrated through stock repurchases; from the continuous iteration of AI algorithms to their deep implementation in grassroots scenarios, Huajian Healthcare has consistently embraced its mission as the “value discoverer and growth enabler of global high-tech intellectual property,” integrating corporate development into the national agenda while grounding technological innovation in public welfare needs.

In the future, we will continue to deepen the construction of an AI-driven healthcare ecosystem, ensuring that self-innovated AI technologies take root at the grassroots level and serve the entire population,using the power of technology to pave the way for equitable healthcare,contributing solid efforts to the Healthy China initiative and truly realizing the brand vision of “benefiting the nation, the people, and the world.”