#China #Changzhou #Jin Medical #Rehabilitation Equipment #Erqi Wang

Insights from Jin Medical's CEO Fireside Chat

On February 2, 2026, Jin Medical International Ltd., a reputable player in the rehabilitation medical equipment market and listed on NASDAQ under the ticker symbol ZJYL, held an engaging CEO Fireside Chat. During the event, CEO Dr. Erqi Wang discussed critical aspects of the company, including strategic priorities, growth plans, and industry outlooks.

Reverse Split

A significant topic of discussion was the recent proposal for a reverse stock split, which was presented to shareholders during an extraordinary general meeting. Dr. Wang addressed the common perception that such moves are often merely compliance-driven. He acknowledged this perspective but emphasized that the reverse split is not only a compliance tool but also a strategic reset. Its purpose extends beyond mere mechanics; it aims to realign the company’s capital structure with its long-term fundamentals and improve the broader market perception of its competitiveness.

Strategic Plan for Long-Term Value

Moving forward, Dr. Wang highlighted several strategic priorities for the company:

1. Consistent Market Communication: The company aims to provide clear updates about its progress based on developmental milestones and strategic goals rather than focusing solely on short-term narratives.
2. Disciplined Capital Allocation: Jin Medical plans to invest in manufacturing capabilities, product certification, and market expansion wisely, with a keen focus on maintaining balance sheet stability.
3. Long-Term Perspective: They recognize the industry’s cyclicality and aim to convey a long-term outlook to shareholders, acknowledging the time required to scale regulated products effectively.

Outlook for 2026-2027

Regarding the future, Dr. Wang shared the primary objectives for Jin Medical in the coming years, which revolve around three key goals:

• - Broader commercialization following successful product certifications,
• - Scaling up manufacturing processes and normalizing costs,
• - Expanding into both local and international markets.

These objectives are underpinned by a commitment to disciplined growth, emphasizing repeatable returns that bolster operational stability instead of pursuing rapid but potentially unsustainable expansion.

Enhancing Operating Leverage

Dr. Wang also tackled the topic of operating leverage and where the company sees the greatest opportunities for improving efficiency. He pointed out that manufacturing efficiency, supply chain integration, and optimizing the product mix present the most significant avenues for advancing margins. By increasing volume absorption of fixed costs and enhancing automation, Jin Medical anticipates an improvement in consistency and sustainability of profit margins.

Chuzhou Factory's Strategic Importance

A focal point of the conversation was the strategic role of the new factory in Chuzhou, which is a substantial investment aimed at expanding Jin Medical’s manufacturing capacity. Scheduled to achieve full production capacity by April 2026, this facility is crucial for enhancing automation and quality control, ultimately leading to lower unit costs and improved production flexibility to compete successfully in both domestic and international markets.

Timeline for Chuzhou Factory Ramp-Up

Regarding the ramp-up at the Chuzhou facility, Dr. Wang noted that it would be a gradual and disciplined process, initially concentrating on selected product lines before expanding capacity utilization.

Industry Outlook

Dr. Wang shared his perspective on the rehabilitation and medical equipment industry, envisioning a robust demand driven by the aging population, increased rehabilitation needs, and heightened healthcare expectations. He noted that industry standards are evolving toward stricter compliance, efficient manufacturing, and deeper technical integration, highlighting the importance of execution and discipline in navigating the future landscape.

Managing Geopolitical Risks

Lastly, recognizing the implications of US–China relations on global manufacturing, Dr. Wang addressed how Jin Medical is mitigating geopolitical and supply chain risks. The company prioritizes supply chain diversification and regulatory compliance to ensure resilience amid potential policy changes, demonstrating an adaptable and forward-thinking management approach.

In summary, Jin Medical's recently held Fireside Chat not only showcased the company's strategic planning and outlook but also revealed its readiness to face market challenges head-on. As Dr. Wang articulately noted, the commitment to long-term perspectives, structured growth, and operational efficiency will be pivotal in steering Jin Medical towards sustained success and competitiveness in the sector.

For more information, visit Jin Medical's website.