Analysis Report on the Impact of Centralized Procurement Policy on Gross Margin of Vascular Intervention Devices

Based on professional research reports and market data analysis, I will answer this question in detail for you.

Regarding the 48.98% revenue growth rate of Boma Medical you mentioned, although we cannot obtain the company’s specific financial data, we can analyze the impact of centralized procurement policy on the gross margin of vascular intervention devices from an industry perspective [1].

According to data from Huaan Securities research report, the coronary intervention segment has undergone significant changes after the implementation of centralized procurement:

• Gross Margin Trend
  : From 75.39% in 2018 to around 68.60% after the implementation of centralized procurement, currently basically stable at 68.65% [1]
• Net Profit Margin Performance
  : Gradually recovered from 18.63% in 2021 to 24.01% in the first half of 2025, basically returning to the pre-centralized procurement level [1]

: The initial impact of centralized procurement on gross margin was obvious, but with the realization of the ‘volume for price’ logic and the optimization of enterprise cost control, profitability is recovering.

The impact of centralized procurement varies across different sub-fields of vascular intervention:

Sub-field	Gross Margin Impact Degree	Recovery Cycle
Coronary Stent	Medium-high (price reduction 90%+)	2-3 years
Peripheral Vascular Intervention (PTA balloon, etc.)	Medium (price reduction 60-80%)	1-2 years
Cardiac Electrophysiology	Low (centralized procurement just started)	To be observed

The PTA balloon catheter in the peripheral vascular intervention field faces the following gross margin pressures:

• Price Reduction
  : According to market data, the average price reduction range of centralized procurement for peripheral vascular intervention devices is 60-80% [1]
• Cost Conduction
  : Raw material costs account for about 30-40%, and under the pressure of price reduction, gross margin is obviously under pressure
• Scale Effect
  : Sales growth can dilute fixed costs to a certain extent, but the marginal contribution is limited

1. Centralized Procurement Winning Price Reduction
   : Directly compresses gross profit space
2. Channel Profit Compression
   : Profits of distributors and dealers are compressed
3. Product Structure Change
   : The increase in the proportion of low-priced products pulls down the comprehensive gross margin

1. Significant Sales Growth
   : The logic of ‘volume for price’ is realized, and scale effect emerges
2. Product Upgrade
   : The proportion of high-end products increases, optimizing product structure
3. Cost Control
   : Improvement of production efficiency and supply chain optimization
4. Overseas Market Expansion
   : Export business contributes incremental gross profit

According to 2024 data, the high-value consumables segment of medical devices:

• Overall Gross Margin
  : Maintained in the range of 68-70% [1]
• Change in Expense Ratio
  : The sales expense ratio decreased from 26.05% in 2020 to 21.15% in the first half of 2025, and the R&D expense ratio remained at 8-9% [1]
• Net Profit Margin Recovery
  : Recovered from -3.58% in 2022 to 4.35% in the first half of 2025 [1]

• Short-term Impact
  : Gross margin decreased by 5-10 percentage points in the first year of centralized procurement implementation
• Medium-term Recovery
  : Gross margin basically stabilizes at a new equilibrium point within 2-3 years
• Long-term Trend
  : Leading enterprises with innovative capabilities are expected to maintain a gross margin of over 65%

1. Centralized Procurement Renewal Price
   : Reflects the signal of price stabilization
2. New Product Volume Growth Rate
   : The pulling effect of high-end products on gross margin
3. Overseas Business Proportion
   : Contribution of export business to overall gross margin

For vascular intervention device enterprises, it is recommended to pay attention to targets with the following characteristics:

• Outstanding innovative capabilities and rich high-end product pipelines
• Smooth overseas market expansion
• Strong cost control capabilities and significant scale effects

: Factors such as changes in industry policies, intensified market competition, and fluctuations in export orders may affect gross margin [1].

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[1] Huaan Securities Research Report: “2025 Interim Report Summary and Outlook of the Medical Device Industry: High-value Consumables Emerge from the Impact of Centralized Procurement” (https://pdf.dfcfw.com/pdf/H3_AP202509241749562436_1.pdf)