CITIC Securities: With the rapid development of domestic surgical robots and general-purpose humanoid robots, the industry is expected to experience systematic cost reduction.

CITIC Securities research report states that robotic surgery has significant benefits and represents a new trend in medical development. However, the high cost of surgeries has resulted in a long-term low penetration rate. We believe that with the rapid development of domestic surgical robots and general-purpose humanoid robots, the industry is expected to undergo systematic cost reductions, greatly improving penetration rates. Humanoid robots may promote industry development in two ways: 1) driving the domestic production and scaling of the upstream supply chain, which benefits the downstream by significantly reducing costs; 2) top-tier journals such as Nature and Science publishing research that humanoid robots may be capable of directly manipulating instruments during surgery, combined with embodied intelligence and AI in the physical world, which is likely to bring about a new wave of surgical revolution. We believe domestic robots are poised to stand out in global competition and could foster billion-dollar industry leaders, suggesting attention be directed toward cost-reducing and innovative robotic companies. At the same time, we also note the frequent mergers and acquisitions by leading instrument companies in this field, which may bring additional investment opportunities.