On August 31, ANGELALIGN (06699) delivered a mid-year report that exceeded market expectations, with its robust operational results and financial metrics signaling a fundamental breakthrough in the company's business fundamentals. According to the financial report, the company achieved a total of 316,609 case starts in the first half of the year, a year-on-year increase of 40.2%, and generated revenue of $231 million, up 42.9% year-on-year. The most significant highlight of this interim report lies in the leap in earnings quality and the realization of its growth narrative. On one hand, the company's overseas business has turned profitable, as its previously asset-heavy global direct sales network begins to release its "operating leverage effect." On the other hand, in the domestic market, driven by deeper penetration into lower-tier cities and its leadership in the early orthodontic treatment segment, the company is expanding its market share through a strategy focused on clinical efficacy. Looking ahead, as the global invisible orthodontics market heads toward a trillion-dollar long-term growth trajectory, ANGELALIGN is leveraging its balanced structure of "domestic and international dual engines" to accelerate its transformation from a "Chinese champion" into a "key global player." With the volume growth in overseas operations and the strong rise in domestic market share, the market's valuation framework for the company is expected to shift from a pure "growth stock" to a "value growth stock with global pricing power."

The Wave of Scale Benefits: The Global Second Growth Curve Delivers Strong Results

As mentioned, the core highlight of ANGELALIGN's 2026 interim report is that its globalization efforts have turned profitable, marking a tangible realization of its performance targets. Financial data shows that the company's total number of invisible orthodontic case starts in global markets (excluding mainland China) reached 168,000 in the first half of the year, a year-on-year increase of 43.4%, with both case volume and revenue contribution surpassing the 50% threshold. More critically, the overseas division has reversed its previous losses, signaling that ANGELALIGN has successfully established a "self-sustaining" business model in overseas markets, transitioning from the exploration phase to a harvest phase. This profit turnaround in overseas operations is essentially the inevitable result of accelerated operating leverage, driven by both scale benefits and deep localization efforts. On one hand, the company maintains an exceptionally high customer net promoter score in overseas markets through its superior sales services, treatment plan design, and clinical technical support. This word-of-mouth recommendation, grounded in real clinical efficacy, effectively lowers marginal customer acquisition costs and serves as the core driver of rising case volumes. On the other hand, to address the vast, unmet demand for invisible orthodontics globally, the company continues to build local teams and hosts professional academic conferences such as iMaster and Angel Ascend in key markets across Europe, Asia-Pacific, North America, and Latin America. These efforts enhance doctors' recognition of ANGELALIGN's solutions, establishing a virtuous growth flywheel led by professional academia worldwide. This achievement is closely tied to the global synergy of its R&D and back-office operations. Through an open, collaborative management culture, ANGELALIGN has successfully integrated top-tier clinical knowledge and technical talent from around the world, enabling global collaboration in R&D resources. This not only improves the efficiency and predictability of complex case treatments but also fosters cross-border clinical experience sharing, driving the refinement of products, technologies, and solutions. More importantly, this clinical expertise is gaining increasing professional consensus globally. In the invisible orthodontics industry—a sector with powerful compounding effects—the true barrier to entry lies in earning the clinical endorsement of leading local orthodontic experts. Currently, ANGELALIGN's products and solutions have passed rigorous peer review in authoritative academic journals in key markets like North America and Europe, and have been validated in numerous real-world clinical cases involving complex scenarios. As the global direct sales network deepens and scale effects continue to amplify, the overseas business not only becomes a core engine driving overall revenue growth but also contributes tangible incremental income to the group. Looking forward, with the ongoing recovery of overseas profit margins, this high-growth global second curve will provide a steady and powerful impetus for the company's long-term value enhancement.

Rising Share in China: Medical Service Expansion into Lower-Tier Cities Fuels New Growth Drivers

Simultaneously with the acceleration of its global business, ANGELALIGN has demonstrated strong resilience in the mainland China market, with its market share steadily climbing and its domestic leadership position widening further. In the first half of 2026, ANGELALIGN's invisible orthodontic case starts in mainland China reached 148,608, a year-on-year increase of 36.8%. In an industry increasingly focused on clinical value, this growth stems not only from sustained development in its existing advantageous markets but also from the extension of the company's medical service capabilities into broader regions, further enhancing penetration into lower-tier cities. The growth in lower-tier markets is not simply a result of channel expansion, but is built upon the continuous descent of professional reputation and clinical service capabilities. After years of clinical practice in invisible orthodontics, doctors in lower-tier cities have become more discerning about product quality, clinical efficacy, and professional support, and they are increasingly focused on whether treatment plans can remain stable and effective. In this process, ANGELALIGN has gradually built a strong reputation through its long-accumulated product quality, clinical outcomes, and service capabilities, translating its professional advantages into choices favored by more doctors as its business coverage and market reach expand. During the reporting period, the proportion of case volume from lower-tier cities continued to rise, which is a direct reflection of this logic. More critically, ANGELALIGN is transforming its medical capabilities into a service system that can be replicated across broader markets. The company continuously helps doctors deepen their understanding of invisible orthodontic technology and enhance their confidence in handling complex cases through clinical support, case discussions, systematic training, and professional education. As doctors' diagnostic and case management abilities improve, the range of indications they can cover expands, thereby unlocking previously unmet demand for invisible orthodontics. This means that medical service capabilities are becoming the key fulcrum for increasing penetration in lower-tier cities, creating a virtuous cycle of "enhanced doctor capabilities — strengthened clinical trust — increased case volumes." As the coverage of lower-tier cities continues to expand, clinical support deepens, and demand for segments like early orthodontic treatment accelerates, high-quality invisible orthodontic services are poised to reach more doctors and patients. This penetration growth, driven by professional capabilities, will continue to consolidate ANGELALIGN's leadership in the Chinese market and serve as a significant driver of overall case growth.

In summary, the core signal from ANGELALIGN's 2026 interim results is the formation of a more balanced and resilient global growth structure. This structure is supported not by a single market's dividend, but by the systematic synergy of clinical capabilities, global operations, and scale efficiency. As these capabilities continue to translate into market share and operational outcomes, ANGELALIGN's long-term growth certainty and global value potential are expected to expand further.