Lianhe Sowell International Group Ltd (NASDAQ: LHSW) announced that it has won two procurement contracts in China, one for a lower‑limb joint rehabilitation device and another for an ionic contamination tester. The contracts were awarded to Shenzhen First People’s Hospital, a leading Class III Grade A medical facility, and to the Electronic Engineering Institute of the China Academy of Engineering Physics (CAEP), a nationally renowned research institute.
The rehabilitation device is a mechanical‑assisted system that combines a touchscreen interface, rotary controls, Bluetooth connectivity, a large LCD display, voice guidance, and intelligent torque protection. Its dual‑rod limb support design offers wide‑range adjustability and smooth, continuously variable motion, making it suitable for various stages of postoperative recovery. The ionic contamination tester features high‑precision conductivity and temperature sensing, a 24‑bit ADC, temperature‑controlled measurement, real‑time curve display, automated contamination calculations, and comprehensive safety interlocks, enabling reliable assessment of ionic residues on printed circuit boards and electronic assemblies.
These wins illustrate LHSW’s deliberate shift toward higher‑margin verticals. In fiscal year 2025, the company reported stable total revenue, a notable increase in software sales, and a rise in gross margin from 22% to 26%. The Altman Z‑Score of 4.34 signals strong financial health, while a Beneish M‑Score of –1.43 indicates no immediate red flags for earnings manipulation. The new contracts align with this trajectory, offering diversified revenue streams and reinforcing the company’s technology platform in regulated sectors.
CEO Yue Zhu said, “Securing these contracts from a premier Class III Grade A hospital and a nationally renowned research institute demonstrates strong market recognition of our capabilities in medical rehabilitation and high‑precision testing. We remain committed to innovation and to delivering intelligent, reliable solutions that support hospitals, laboratories, and industrial partners across multiple sectors.” The statement underscores confidence in the company’s execution and its strategic focus on higher‑margin solutions.
Investors welcomed the announcement, viewing it as validation of LHSW’s diversification strategy and a potential catalyst for future revenue growth. The contracts complement recent corporate initiatives, including a dual‑class share structure, a $105 million financing agreement for an AI‑powered robot manufacturing base in the UAE, and supply agreements worth approximately $4.3 million for AI‑driven 3D optical inspection solutions.
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