Dear leaders, management, we can start. Good afternoon, investors and analysts. Welcome to Sisram Medical's H1 2026 interim results earning call. Today we will share with you the operator results of our company, key business progress, and future development strategy for H1 this year. We have the management, including Mr. Lior Dayan, our Chairman, Mr. Eyal Ben David, CEO, Mr. Jiahong Li, Co-CEO and CFO. I am your moderator, Fan Hui, Director of IR, IRD. This event is equipped with simultaneous interpretation. Participants may listen on either English or Chinese channel. At first, the senior executives will share their remarks, followed by Q&A. We welcome your questions. Now, let's welcome Mr. Lior, our Chairman, to begin. Please go ahead, Lior.
Good day, everyone. Thank you very much for joining. As we open today's call, I would like to share the board's perspective on the industry's direction and Sisram's place within it. The fundamentals of medical aesthetics remain strong. Patient awareness is rising, treatment adoption is broadening, more medical professionals are entering the field, and innovation remains vibrant across technologies, injectables, and digital solutions. As the industry matures, the source of competitive advantage is changing with it
It is no longer about any single product, i t is increasingly about the ability to deliver integrated solutions, execute consistency, and create long-term value across categories, technologies, and markets. That is why Sisram has spent the past several years building, and why we believe we are well-positioned for the industry's next phase. Our international performance outside North America was a clear highlight in the first half, with strong demand across Asia-Pacific, Europe, and the Middle East.
Asia-Pacific is now our largest and fastest-growing region, and is increasingly central to the company's future. It is where some of the most significant long-term growth opportunities in our industry are developing, and we continue to strengthen our position across the region. At the same time, we recognize that performance in North America and the pressure on profitability require focused attention. The board and management are aligned on the need to improve execution, increase efficiency, and ensure that our cost structure and investments are appropriately aligned with the market conditions. Underneath these results is a business of real and enduring strength, a diversified global footprint that gives us both resilience and reach, a strong core business, and unwavering commitment to innovation. The first half also demonstrated something important about evolution of Sisram. We are no longer defined by a single category.
Our injectables business is developing into a meaningful second growth engine, while core energy-based device business continues to provide the foundation of the group. At the same time, we continue to develop the diagnostic, digital, and personalized skincare capabilities that support our broader integrated ecosystem strategy. What is encouraging to the board is not only where we see growth, but the quality and the durability of the business we are building. We are making deliberate choices today that strengthen the company for the long term, balancing current performance with investments needed to expand our relevance, deepen our customer relationships, and build a more resilient and diversified business. That balance between ambition and discipline is central to how we think about Sisram's next chapter. At the board level, we remain closely engaged in shaping long-term strategy, overseeing execution, and ensuring disciplined capital allocation.
We also have full confidence in the executive team and will continue to support management as it addresses the areas requiring improvement while advancing the company's strategic priorities. Looking ahead, we will continue to strengthen our presence in the markets that matter most, develop our next growth engines, and pursue the opportunities created by rapidly evolving industry. We believe Sisram is well-positioned to capture the long-term opportunities ahead, provided we continue to combine ambition with disciplined execution. On behalf of the board, my thanks to the management and the employees for their dedication, and our shareholders and partners for their continuous trust. With that, I will hand the call over to our CEO, Mr. Eyal Ben David.
Thank you, Lior, and thank you all for joining us today. The first half of 2026 was important period for Sisram. Energy-based innovation has entered a phase of real advancement, and we intend to lead it by building treatments that are more precise, personalized, and more closely aligned with the body's own mechanisms. That positioning shows up where it matters the most, in demand. For the first six months, we delivered revenue of $171.4 million, reflecting 3.6% year-over-year, supported by better sales productivity, disciplined operations, and stronger production. Let me be direct about profitability, which came in below our expectations this period. This was a largely strategic reflecting investment needed for us to build our injectable business in China and launch Sisram's first pharmaceutical product, including meaningful investment in our organization, commercial team, and go-to-market execution.
We see it as an investment in a second growth engine that will serve us for years to come. Turning to the regions, our international markets outside North America grew 16.7% to $127 million, led by mainland China, Thailand, Japan, and Hong Kong, while Europe grew by 12% to $26.7 million. North America declined overall, reflecting continued softness in the U.S. However, we're addressing these, improving our sales productivity, discipline execution, and stronger operational support. While our Canada operation grew 20% year-over-year, provides an early indication of our potential for the regional recovery. Looking at our energy-based platforms, they continue to lead. They remain the foundation on which the rest of our model is built. The products, Hybrid and Soprano families, and specifically Alma Harmony, continued to generate strong global demand, supported by improved sales productivity and focused commercial execution across key markets.
During the period, we launched Soprano Titanium in Thailand and Harmony XL in mainland China, strengthening our premium energy-based platform and offering and reinforcing our position with leading practitioners worldwide. Every platform we place is a multi-year customer relationship rather than a one-time sale. It generates recurring revenue through consumables and protocols, and it opens the account for injectables and for our AI tools later on. We manage the portfolio to protect that. A steady launch cadence, firm premium positioning, and protocols that keep practitioners on our platforms rather than switching to the competitor. Injectables are accelerating as our second growth engine. This is where much of the first-half investment is going. The segment keep building momentum led by DAXXIFY commercial milestones in mainland China and Profhilo's continued strength in Thailand.
In China, DAXXIFY sustained strong commercial momentum during the period, with cumulative shipments surpassing 30,000 vials as of June 30th. In 2026, the coverage reaching more than 500 premium medical aesthetic clinics across 28 different provinces. This gave us a strong commercial base from which we deepen our penetration among high-quality clinics, drive repeat ordering, and build benchmark sites that support broader adoption. Injectables present one of the largest, most attractive revenue opportunities in medical aesthetics, and expanding in this category gives Sisram an important additional channel alongside our EBD platforms. Together with EBD platforms, this broadness, the way we serve clinics and customers, strengths our integration offering and positions us to capture greater share of the demand over time. We are scaling in sequence, establishing DAXXIFY in our largest market first, then extending the model market by markets as our commercial and regulatory footing is in place.
Our AI-enabled ecosystem is gaining traction. Alma IQ and Univers kin by Alma has shown strong retention and repeat orders in pilot markets, reinforcing our conviction that personalization and AI will play a defining role in the future of aesthetics. Recognition of Alma IQ and AI-powered diagnostics capabilities, together with continued momentum of Universkin by Alma in the U.S. market, reflects the growing demand for solutions that connect diagnosis, treatment, and skincare into a seamless patient experience. Because we believe the future of aesthetics will be defined by AI, we are building for it now. A broader international rollout is coming in the second half, extending this personalized ecosystem across the full patient journey. Behind all of this is an organization we have worked hard to sharpen and establish.
During the period, we ran comprehensive manufacturing ramp-up, expanding our capacity, improving our planning, and shortening the lead time for our high-volume platforms while keeping inventory disciplined. In June, we reached a defining moment in our globalization strategy when our Beijing facility produced the first locally made Alma Rejuve. Building in a market is how a global company creates local impact. It puts our technology closer to practitioners, reflects local clinical and regulatory needs, and anchors our APAC ambitions with supply chain built for the growth we see. At the same time, we continue to strengthen our foundations of our future innovation. We have invested $8.5 million in R&D. We welcomed Eran Shor as our EVP of R&D, and further optimized development organization to accelerate strategically important programs.
Our teams advance a broad clinical and innovation agenda, with 24 clinical and pre-clinical studies conducted to date, including four new studies initiated during the period. We also continue to expand and protect our IP portfolio through new patent filings, granted patents, and trademark registrations, reinforcing the long-term competitiveness of our technology platform. Looking ahead, we enter the next phase with momentum, and demand holds. Our platform's land, injectable scale, and the ecosystem we have described for years begins to show up in real customer behavior.
Our priorities follow that momentum to strengthen the energy-based device portfolio and expand across high-growth markets, particularly in APAC, to accelerate DAXXIFY in mainland China, and to scale Alma IQ and Universkin internationally, to grow in the fast-moving hair growth segment, and to deepen our localization in China while pursuing targeted ecosystem-aligned acquisitions that strengthen our pipeline. My thanks go out to our shareholders, partners, customers, and employees, whose dedication drove our progress in the first half and leaves Sisram well-positioned to deliver long-term growth and shareholder value. To walk you through the operations and financials in more detail, I will now hand over the call to our Co-CEO and CFO, Jiahong Li. Thank you, Jiahong.
Thank you, Ben. Good afternoon, everyone, and thank you for joining Sisram Medical's 2026 interim result call. I will cover our first half results and plans for three angles. First, our production operation and strategic execution. Second, key financial performance. And third, our priorities going forward. Let me begin with global production operations and strategic execution. Our Israeli manufacturing base ran smoothly throughout the first half. As global market accelerate their shift toward multi-energy, multi-application platforms, we expand the capacity and upgrade the production lines. At the same time, we refine production scheduling, supply chain management, and end-to-end quality control, shortening delivery lead times for our flagship devices. Our growth fulfillment and supply capability have improved significantly, positioning well to meet rising demand over mid to long term. Concerning Middle East political risk, the actual impact on our first half operation were minimal and limited almost entirely to logistics.
Our Israeli team has rolled out comprehensive contingency measures that give us the ability to adjust the production, shipping, and staffing in real time. This proactive approach has protected our employees, sustained supply chain stability, and kept external disruption to a bare minimum. Today, our Israeli manufacturing facility and all global subsidiaries are operating without interruption. This outcome clearly demonstrate our operational resilience and the strength of our risk management framework. On after-sale service, we continue to optimize our global service network, with particular focus on shortening repair turnaround times, improving maintenance efficiency, and enhancing delivery reliability. Service business profitability also improved. Taken together, this operation enhanced across production capacity. Delivery and after-sales have formed a virtuous closed-loop improvement cycle, providing a solid foundation for revenue growth. The first half marked a major milestone in our localization roadmap.
In June 2026, our Miyun manufacturing facility in Beijing officially commenced production, and the first locally assembled Alma Rejuve rolled off the line. Backed by strong clinical results in anti-aging and skin rejuvenation, the products have gained widespread recognition across China, spanning both the medical aesthetics and live aesthetics segments. The Miyun facility strictly follow the production standards and quality control system of our Israeli bases. Drawing on the case of manufacturing expertise, we're upgrading local capacity and processes. Its commissioning signaled the transition of our China localization business into scale operation. Going forward, we'll build end-to-end coordination across the manufacturing, supply chain sales, and after-sales, deeply ensure stable supply in China, lay a foundation for expanding local production pipeline for the strengthening Sisram differentiated competitive across APAC. That cover operating performance. Let me turn to financial results.
In the first half 2026, despite continued pressure in North America, overall revenue grew 3.6% year-on-year, supported by solid performance from our international operations and injectable business. Second quarter revenue accelerated both year-on-year and sequentially, and the quarterly trend continued to improve. This once again demonstrated the resilience inherent in our diversified geographical and product category mix. International markets outside North America performed particularly well, with revenue up by 16.7%. APAC's share increased to 45%, up by 19.1%, making it our most important regional market. Europe and Middle East also show strong momentum. By business segment, EBD revenue was $134 million, down by 2.5% year-on-year, mainly due to North America headwind. Excluding NA, international EBD revenue increased by 7.2% year-on-year, showing the underlying global demand for our core EBD platform remains solid.
Injectable revenue reached US$22.2 million, up by 54.2% year-on-year, with the share of global revenue rising from 8.7% in 2025 to 12.9%. Growth has also driven primarily by DAXXIFY's commercial rollout in Mainland China and Profhilo's strong performance in Thailand. We now establish solid dual-engine growth model, EBD and injectables. Going forward, we will keep EBD at the core of the rollout of more localized EBD products while accelerating injectable business expansion through deeper DAXXIFY channel penetration in Mainland China, advancing registration approval of Profhilo and other pipeline products. This effort will enrich our wellness solution, optimize the revenue mix, and further enhance overall resilience against market risk. On cost control, we continue a disciplined and prudent approach. Operating expenses grew 8.5% year-on-year in the first half, mainly due to strategic upfront investment in our China injectable business.
Excluding this investment, our operating expenses ratio declined year-on-year, reflecting the benefit of disciplined cost control and efficiency initiatives across core cooperation. In the second half, we will maintain a prudent financial approach, managing costs carefully while continuing to invest for strategic growth. On profitability, results were temporarily affected by North America lower revenue and strategic investment in our China-based injectable operation. In the first half, gross profit was $97.2 million, with gross margin of 56.7%, down from the 60% a year earlier. Adjusted net profit was $5.04 million, compared with $12 million in the prior year period. The adjusted margin was 2.9%, down 4.3 percentage point year-on-year. We have already rolled out targeted improvement measures, and in the second half we will focus on lifting operating quality, strengthening profitability, and improving cash conversion efficiency.
From a financial stability perspective, as of June 30, 2026, we held cash and cash equivalents of $77.3 million, and our overall financial position remains solid. Looking ahead, we will continue to balance reinvestment for long-term growth with shareholder returns, delivering sustainable value to both fronts. With the overview, let me close with a brief summary and outlook. In the first half, the global market environment remained challenging. Against that backdrop, we maintained solid performance, once again demonstrating the resilience of our business. With industrial leading EBD as our foundation, rapidly expanding injectables as a new growth driver, and an AI-driven ecosystem strategy, we have built differentiated competitive advantages.
Looking ahead in the second half, we will strengthen our product portfolio in key markets, enhance commercial execution in North America, and accelerate the penetration of DAXXIFY's channel, the rollout of next-generation EBD platforms, and the integration of our EBD and injectables business in Mainland China, while steadily ramping up capacity at our Miyun localized manufacturing base. Further ahead, underpinned by the solid balance sheet and a clear strategic roadmap, we are confident in delivering higher quality growth through organic expansion and external opportunities alike and increasing sustainable long-term value for our shareholders.
That concludes my remarks. We will now move on to Q&A. Back to the operator.
Thank you, management. Now it is time to take questions. Investors dialing in through phone calls, please note the instruction and please refrain from asking for more than two questions. You can also put your question through the chat box on the online. Now, over to the assistant to give us the instruction.
Hello. If you have a question, you can press star one on your phone keypad. Star and followed by one after the prompt tone, and you can identify yourself and ask your question.
Good afternoon. If you want to ask a question, you can press star one on your keypad on your phone and start to ask your question after the prompt. Now, the first question is from Jinping He from CITIC Securities.
Thank you. Great to have this opportunity. I am Jinping He from CITIC Securities. I have two questions. First of all, in terms of the global and China conditions, has your adjustments of the global and China mix has been completed, and what is the management architecture that is in place now? The second question is about the strategic development goal for your overseas business. Do you have a targeted strategic objective, including key markets that are North America, China, and their strategy respective?
Thank you. Regarding the management adjustment, I will leave it to our Chairman, Lior. The second question about the future development of North America and China, that will be from Eyal, from our CEO.
Yeah. Thank you very much for the question. About the restructure. We have started several important management adjustments in both of the major markets, those markets which we have focus, which is China, of course, and North America. The changes we have done are still rolling. It is supposed to basically strengthen execution, coordinate, and create accountability for the growing of the business. For example, Jiahong Li, which is on the call here, in addition to his Co-CEO position, is leading the activity as the President of Sisram China, and the CEO of Alma China, the EBD part, which will allow us to have a closer coordination across the business.
As you know, in China, we are accelerating the integration of our EBD large business together with the injectable business, which today is, at this stage, DAXXIFY. In the second half, we will see more progress on this operational efficiency and execution, which is on the go. As the business will continue to evolve, we expect to continue to optimize and strength our organization where we find it appropriate in order to support long-term, strong business growth strategy.
Thank you, Lior. Are we fine to the second question?
Yeah.
It is very important to say that strategy is not something that you shift year after year. It is a compass that you believe in, and you follow. Nevertheless, we always look at reality, and we learn, and we adapt. Our strategy remains to have a full cycle integrated ecosystems where the EBD is the core, and we strengthen it with injectables, diagnosis, and AI-powered skincare. But the EBD core is where we win the markets, when we earn the trust. And our core objective is to evolve from a single brand into a comprehensive medical aesthetic solution provider. Looking at the markets, obviously, our focus is on China and North America. In China, as we all know, we have launched a mega project that we have been investing and working on for many years, launching DAXXIFY. This is defining us as a leader.
We are defining unique protocols for China, and we are driving increased utilization and repeat purchase. We also accelerate for the EBD, the next generation devices. We want to deepen the interaction and integration between the commercial, the customer, and the medical education. We also improve our supply chain across the company and make sure that we are ready for the next stage of integration between the EBD and injectables in China. As mentioned in the statements, we have an important milestone. We have the capacity in a Beijing facility to localize a product. It is one product today, but it is only the beginning, and it will enable us to capture the potential of growth in APAC. As for North America, we realign our commercial framework and our operating model conditioning. We maximize the value of North America's strength.
We understand that what really matters is our brands, and what most matters is our customers and install base. Our focus is to come back to our customers that showed trust, and to make sure that they make the best out of their systems, and they deliver amazing results for their patients. This is our first priority. We want to make also sure that we work and prioritize our performance stabilization and profitability recovery through the region. We proactively look for cost realignments and a clear focus on margin improvements. We are establishing our foundation to have a sustainable long-term growth. Thank you.
Yeah, good. Thank you, management, for your very specific answer. Yeah, thank you. We wish you a better and a better future. Now, I am going to invite next speaker from Founder Securities, Gu Hanting. The floor is yours.
Yeah, dear management, I am from Founder Securities. I have two quick questions for the management. The first question about DAXXIFY. So in first half of this year, what is the confirmed sales revenue? What is the volume? Compared to our annual objective, will there be any adjustment? My second question is about product sales movement and repurchase on DAXXIFY. What is the repurchase, and including the sales activation or movement? In terms of the clinics or institutes we have covered, what about our future plan on expanding into different institutions, for example?
Yeah, when it comes to revenue on DAXXIFY and the future sales goal on DAXXIFY and the repurchase performance on DAXXIFY and the coverage of institutes, we are going to invite Jiahong.
Yeah. Thank you very much. We haven't disclosed a specific number on DAXXIFY yet, but overly speaking, the commercialization on DAXXIFY is well-aligned with our expectation. Our annual operational goal is RMB 100 million. We are on the pace or cadence, and it will be adjusted according to the updates on commercialization in Chinese market. We will share with you if there is any updated information. Yeah, at present, we follow a scheduled cadence to proceed DAXXIFY's business at our largest market, Mainland China. We will secure our leadership. Then if the maturity on both commercialization and regulation is available, well, we promote and reproduce it region by region. That is your first question.
The next question is about sales movement and the repurchase as of end of first half of this year. Our shipment has exceeded 30,000 vials, exceeding 28 provinces and nearly 500 premium medical aesthetic clinics. The driven forces is the penetration at the end market as well as standardized training on the practitioners has been executed very well. At English level, we call it a benchmark, the medical aesthetic clinics. We will carry out following three works. The first, standardized clinical training, very refined. They are training and also service at the end, as well as localized, customized injection protocol, which will increase both the frequency of the clinical application and a stronger intention of repurchase. We are interested in this topic. We keep the repurchase at a very healthy level.
We realized quarter-by-quarter growth, which has really built our strong leadership at premium. The BTA market penetration is increasing. From second half of this year, commercialization will shift from just the coverage into more deeper penetration. Our priority is to build the benchmark sites in China to optimize the local injection protocol, increase the repurchase level as well. Thank you.
Thank you very much for your question. We are looking forward to the further updates on the sales as well. Thank you. Our next question is from Northeast Securities. Li Senman, Northeast Securities, please.
Dear leaders, good afternoon. We really appreciate this great opportunity during the Q&A. I want to follow up, DAXXIFY. Still a follow-up question on DAXXIFY. We have also heard that we are also witnessing a certain ratio on profit sharing may decrease that. What is the updates on the ongoing negotiation? What is our percentage? More specifically, how much percentage point will be declined? When will we have an explicit answer or result? This is the negotiation on DAXXIFY as well as Revance.
The next question is still about the pricing at the end market of DAXXIFY. It is deemed as a premium product. This is my question about the overall pricing on DAXXIFY, including the expenditures for single treatment and also compared to BOTOX, what is the premium of our products? How much are higher? What about the profitability in this field compared to the competitors? What are our advantages? Thank you very much.
These are the two questions. Thank you so much. The first question about Revance negotiation, we are going to invite our CEO about updates on Revance negotiation. The second question about the pricing of DAXXIFY at the end market, we are going to invite Jiahong Li to answer, take the second question. Thank you.
Thank you. Indeed, a very important question. With Revance, it is a commercial agreement, but it is also building a relationship between two companies that are established as premium companies. The contract was signed a while back, and as we launch, we have an obligation to negotiate to have our best transfer price. We are exploring this opportunity. I will not disclose here, obviously, the specific terms, but we are exploring it on a wider aspect.
We are seeking to broaden the scope of collaboration, expanding outside of not only being in Mainland China, which is crucial, Hong Kong and Macau. We are negotiating and speaking about launching and representing DAXXIFY in other strategic markets, and that will affect this agreement, could affect the total terms of our agreement, our cooperation. I understand it is important for all of you to understand and to know. Hopefully, we can update soon with news about more specific terms and territories that will enable us to increase our opportunities with this product. Thank you.
Yeah, I try to take the second question. For DAXXIFY, as we said, it is positioned as a long-acting BTA. The price is RMB 6,800 at the end market, so we do not want to exchange the volume with a low price. We want to leave more margin for the clinics. We find that overall speaking, the price is quite stable. Some premium clinics realize a sales with good premium. Commercialization of DAXXIFY in China is direct to clinics, it is a quite flattened model without intermediates in the middle. We leave the sufficient profit and margin to clinics. When it comes to single treatment price difference compared to our competitors, we are not convenient to disclose the details. But for DAXXIFY, first of all, it is long-acting, quick action, and very natural and safer.
For our competitors, if it can be maintained for three to four months, patients need to get three to four injections. But for DAXXIFY from efficacy, the medium time of maintenance duration is six months. Some patients can last as long as nine months from annualized consumption. The overall expenditure between the patients are very close, but for DAXXIFY, we have less times of injection to obtain equivalent, even longer maintenance duration, which will be more convenient for the patients, and it is a differentiated treatment experience. Overall speaking, we will offer clinics with competitive margin of profit, and when DAXXIFY has a quick action, a long-acting as its differentiators, it will help clinics to improve both satisfaction, stickiness, and operational efficiency or productivity. Thank you.
Thank you, Jia and David , for your great sharing and answer. No questions from my side. Thank you.
The next question is from Sealand Securities, Ding Jingxin . Sealand Securities. Ding Jingxin , please.
Dear management, hello everyone. Thanks so much for giving me this opportunity. I also have two quick questions. The first question is that we are also wondering in terms of the BTA market, especially including the landscape and including the overall trend. What about botulinum toxin market as a whole, about its future trend? The next question is about localization. We have laid out the localization. In China, what is also the progress or the updates on localization? What is your future plan afterwards? Thank you.
Thank you for your question. Double-check for your first question about competitive landscape on botulinum, the toxin. The next question about localization, maybe Jiahong will take both the questions, right?
First of all, I am going to talking about the overall landscape. We know from the supply side that it had witnessed a continuous expansion. Continuously speaking, there are eight products on the botulinum toxin got the approval. The next one, two, three products. Another four to six new products will enter the market. So it witness quite cutthroat competition, especially it is concentrated in the so-called popular medium to premium market, medium to high market. We know the botulinum toxic products are of a low supply. The demand is of great certainties, right? It is a very important SKU.
As consumers' awareness increased, as we have more and more indications, and also with the need of looking like young and overall management on your contours, aesthetics, the demand will expand. The market capacity is expanded at the same time. But entry of some low to medium market will impact your average selling price and your margins, to some extent. The competition on the price will be more fierce. But premium product had this uniqueness, including efficacy, branding, the duration, and it will maintain a relatively stable pricing system.
The market will be highly segmented, including premium or the mainstream, or low-end. For DAXXIFY has two key categories in the premium where there is competitive edge. The competition will shift from only price war into a differentiator. We have not only BTA, but also recombinant new products or other emergent botulinus toxin products. I think in the future, practitioners' education, clinical evidence, product experience, and your commercialization capability are very important driving force behind the competitive landscape. As we all know, it is worth paying attention to those innovative products. But what about the performance at the end of the day in the market?
We will wait and see, including the recombinant botulinum toxin, whether it will be recognized by the mainstreams, whether it can reach its commercialized target or not. We will wait there and see. In the future, the market of the botulinus toxin market will be diversified and stratified, I mean. But the industry will be expanded further. I believe those products with differentiators, premium value creation, like DAXXIFY, will be provided with better opportunities on growth. In terms of the playbook on DAXXIFY, it was officially launched in January this year with very good updates on commercialization. Let us talk about differentiator of the product from which we cut into the premium BTA market. It has also become the injectables growth engine.
Well, as I mentioned, in the first half, we have accumulated shipment of 30,000 that cover 500 premium medical aesthetic clinics in 28 provinces. The progress has been very well. That's to your first question. You also talk about localization. That was in June. The Chinese production base was officially put into production. The first EBD, which is called Alma Rejuve, was successfully rolling offline. This really marked a new stage for the localized strategy in China. This base is using the mature process from Israel and strict quality control system from Israel, which help to optimize the supply chain, but also ensure quality, consistency, and stability. This production base also lay a foundation for the company to cover and dive deep in the Chinese market, but also covering APAC.
By leveraging the China supply chain manufacturing capability, as well as the R&D capability, I think we can massively reduce production costs. Reducing production costs, reducing production lead time, and also diversify risks from geopolitics. In the short term, the new production line is still in the phase of making investment. There could be impact on financial, but for the long term, there's going to be release of profitability mid to long term.
Thank you. Thank you for your comment. Very clear. No further question.
Next question. Shi Yuxian from China Securities.
Can you hear me?
Yes, please go ahead.
Great. Hello, management. Thanks for having me. I have two questions. In terms of your key SKU, what is the sales outlook for your key SKU in the second half? Do you expect further improvement? Also the Harmony XL that you have just launched, what is the expectation for the performance? Do you have any feedback from the user? Is it going to lead to the revision of your expectation or guidance? That is the second question. Also for your product line, when you extend your product line to quantify business synergies in the future. You have been through quite a big structural change in terms of category and geography. In the next three to five years, what is the right expectation in terms of the category mix?
Thank you, Mr. Shi. You talk about the sales of the EBD and the future outlook for sales. I will leave it to Li Jiahong . Second question about when we are expanding our product line and in terms of commercial synergy, what do you think of the product mix in the three to five years? That question I will leave to Lior, our Chairman.
Okay, I will take the first question. In the first half of 2026, as you talk about the key SKU, which is including the Harmony XL, the EBD order has maintained a steady growth. Titanium is actually a premium EBD that we launched in China, which is launched in the second half last year, and to the active response from the markets. The Harmony XL was launched in July in China. The product is also quite innovative by combining the Dye-PL 100 nm super transmitting light and near-infrared light as a dual technology, which is a new generation of comprehensive solution for therapeutic and maintenance. Since launch, it has been widely accepted and welcomed by the market, and the order is doing very well.
Now, in the second half, as we mentioned, our China local production base was put into use in June, which includes some of the capacity ramp-up, including Harmony XL, as well as the contribution from the new product and EBD injectable synergy. We are very confident for the growth in the second half of the year for China. Thank you.
I will address the second question regarding the product mix and how we see synergies going ahead. When we talk about future product mix, the strategy that we have is not to move away from EBD, but actually building a broader and more diversified portfolio around it. EBD will remain the foundation of our business, while injectables are becoming increasingly important as a second growth engine, as you know. This is complemented over time by diagnostic tools like Alma IQ and personalized skincare that was launched a year ago in the United States, and earlier this year in Germany, and in Hong Kong at the end of last year. You can see the combination therapy through our ecosystem to be built. Maybe a few words about Alma and the portfolio. Combination has always been part of Alma's DNA.
For many, many years, we have pioneered the combination of different energy-based technologies to achieve better clinical outcome. This was always the guided clinical path. What has changed in the scope of this integration is that in selected markets, we are now expanding this approach beyond EBD, connecting diagnostics, as I mentioned, Alma IQ, personalized treatment protocols, EBD and injectables, and personalized skincare, such as Universkin, supported by AI. We believe this gives Sisram a unique position in this industry. We are not simply adding products, we are building and validating the ability to connect different categories into an integrated clinical ecosystem.
Importantly, we are supporting this with clinical research, including, for example, Soprano Titanium with Profhilo in Thailand, and studies in Europe combining our EBD technologies with Prollenium Revanesse portfolio, the injectable of hyaluronic acid. Over time, our differentiation will come not only from individual products we offer, but from our ability to combine them and deliver better and more personalized outcome.
Thank you.
Thank you. Next question is Chen Siyu from CICC Securities.
Thank you for having me. I am Siyu from CICC. I have two questions. First is about EBD business. In terms of the R&D direction for your new products, where you are researching for, and what are the innovation for the last two years, is going to bring some innovation launch. Second is about also the portfolio. What about the progress of Chinese approval for your Profhilo? Do you have expected time for launch? If it is launched, what is your pricing strategy, your playbook, and what is the solution to combine with botulinum toxin?
Thank you. The first question about the EBD R&D direction and new product launch plan, I will leave it to our CEO. The second is about the Profhilo Chinese registration and commercialization. I will hand over to Mr. Li Jiahong .
Thank you. I will take the first part. The R&D is something that I am specifically very excited about, that we have reached significant progress in new ideas and new products, but also in launches that we can see in the near future. I mentioned in my opening speech that we have recruited a new EVP for R&D, and we believe this is the engine for our long-term success. We have mapped several transforming products for the future, but I want to explain the process we do. We do not just have scientists and engineering thinking what could be exciting to do.
We have a strategic department that is talking to customers, talking to clients, talking to doctors, to partners, and we understand and we map where the market is growing, and what is the real customer demand, and what product specifically can create a good ROI for the clinic, and help that clinic to have retention with their patients. In addition, being a leader and a clinically- proved company, we make sure that there is sufficient studies backing this with pure evidence.
The way we launch products, when we can, and it is not easy, we do a revolution. We bring something different, not just another 5 J or 5 nm or a different color or a UX/UI. We drive innovation. In other parts, we make sure that our leading family of products are every three to five years maximum, improved. This is the next iPhone per se. But giving you more specific about our launch plans, and we cannot disclose everything.
In H2, we will launch our next generation of hair growth system in North America, and we will launch our Alma PrimeX, which is our RF ultrasound device in Thailand, a market that we have showed that we can create an impact very fast. In addition, before the end of the year, we will launch the next generation of Rejuve. This is for the beauty segment in China. Thank you.
Okay, I will talk about Profhilo. Profhilo, we plan to submit Profhilo's indication for facial indication to the regulator. We are going to file the application indication the second half. We expect approval will be received in the second half 2027. We are getting ready for the commercialization. Profhilo is a high-end hyaluronic acid, which is great to improve skin laxity, maintain and improve the molecule, and moisturize the skin, and reshape the sagging tissues. So it is not a traditional hyaluronic acid. It is actually stimulating and regenerating a natural collagen and elastin. So we expect the total sales will be in the hundreds of millions RMB, but that depends on the timing of regulatory approval and the final market acceptance. Thank you.
Thank you. I have no further question. Thank you so much.
Next question is Dule from Huaxi Securities.
Good afternoon. I would like to ask about the guidance for the second half of the year and the coming years. Just to get your guidance and outlook.
Thank you. Regarding the guidance, I will leave it to Mr. Li.
In 2026, the FY 2026 is defined as a year of growth and integration. Even though in the first half of the year, you have seen headwind from North America macroeconomy, but because of the healthy order backlog and core product line momentum, we are very confident that the second half revenue will achieve significant improvement Q- on- Q and year-on-year. At the same time, we will focus on enhancing operating efficiency, improving profitability, and recovery, and also cash flow improvement. So we still believe medical aesthetic is a great sector to be in in the full year 2026 and also in the next three years. The company will still expect high growth, and we believe the growth driver will come in a few ways.
First of all, the ramp-up of injectables like DAXXIFY is example in China. The commercialization in mainland China is now driving deeper penetration in organization, which building a benchmark clinics and optimizing localized treatment regimen, driving repeat order. We believe this will also lead to great performance in Chinese market.
We have tried commercialization models on DAXXIFY. We will reach out to the rest of the world accordingly. And we introduced about the progress on registration of Profhilo remaining another important growth engine. Our CEO has also shared about the new products of EBD. We are witnessing new launch in a quite intensive manner. I believe it will bring opportunities for further growth on business. APAC regions, for example, Soprano Titanium was launched in June in Thailand. Some other new products will be also launched. In mainland China, we are talking about Harmony XL, Titanium Prime.
This is also the combo therapy in Hong Kong, which will lay solid foundation for our new incrementals of the business. In North America, we are very interested. We witnessed some challenges in H1, but if we take a look at Canadian market witnessing 20% growth, that has justified the recovery in some regions of North America. We will also seize the opportunities in the North America market, by launching new products, including the new protocols of combo therapy to build. Eone Beauty Universe by Alma. It is an ecosystem. We want to promote the whole ecosystem across the whole chain. Since we introduced the localized production base in Beijing in June.
The first product is Alma Rejuve. In H2, where we ramp up the Alma Rejuve and reach out to more diversified product metrics of local product, and also to seize the opportunities of better supply chain responsiveness and optimizing cost structure. We are also seeking external opportunities of BD. We hope the combination of the above mentioned opportunities will also justify the growth and high-quality profitability. When it comes to the future, we are very confident of this firm's growth across the globe. Thank you.
Thank you for your answer. Thank you very much. Thank you for all of your questions. We appreciate the sharing answers from our executives. Now we call the end of this earning call. We appreciate your participation by investor and analyst. If you have follow-up questions, please reach out to our IR team. Thank you so much.