WORK Medical Grants East China Exclusive Distribution Rights for AI-Automated Blood Cell Morphology Analyzer, Sets RMB10 Million Sales Target for 2026

Rhea-AI Summary

WORK Medical (Nasdaq: WOK) subsidiary Hunan Saitumofei granted Shanghai Benke exclusive distribution rights for the AI-Automated Blood Cell Morphology Analyzer (CM-B600) in East China (Jiangsu, Shanghai, Zhejiang) from Jan 1 to Dec 31, 2026.

The Agreement sets a minimum annual sales target of RMB 10 million and includes a RMB 1 million prepaid performance bond. The Analyzer received Class II manufacturing approval in Nov 2025, supports up to 150 samples per batch, average detection time ≤ 3 minutes per smear, classification accuracy ≥ 90% for major WBC types, identification of 17 WBC subtypes, and a database > 350,000 images.

Positive

• Exclusive East China rights for CM-B600 for 2026
• Minimum sales target of RMB 10 million for 2026
• Class II manufacturing approval obtained in Nov 2025
• Throughput up to 150 samples per batch with ≤3 minutes per smear
• Classification accuracy ≥90% for major white blood cells
• Image database capacity >350,000 high-definition images

Negative

• One-year agreement duration (Jan–Dec 2026) limits long-term exclusivity
• Geographic exclusivity confined to Jiangsu, Shanghai, Zhejiang
• RMB 1 million performance bond prepaid and tied to sales target achievement

News Market Reaction – WOK

+24.00%

26 alerts

+24.00% News Effect

+80.8% Peak Tracked

-21.9% Trough Tracked

+$7K Valuation Impact

$35,327 Market Cap

0.4x Rel. Volume

On the day this news was published, WOK gained 24.00%, reflecting a significant positive market reaction. Argus tracked a peak move of +80.8% during that session. Argus tracked a trough of -21.9% from its starting point during tracking. Our momentum scanner triggered 26 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $7K to the company's valuation, bringing the market cap to $35,327 at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

2026 sales target: RMB 10 million Performance bond: RMB 1 million Batch capacity: 150 samples per batch +5 more

8 metrics

2026 sales target RMB 10 million Minimum annual sales for Analyzer in East China under 2026 agreement

Performance bond RMB 1 million Prepaid by Shanghai Benke, applied to final payment or refunded

Batch capacity 150 samples per batch Analyzer sample throughput per batch, plus one emergency slot

Detection time ≤3 minutes per smear Average detection time per blood smear for the Analyzer

Classification accuracy ≥90% Accuracy for major white blood cell types per slide

WBC subtypes 17 subtypes Number of white blood cell subtypes identified by the Analyzer

Image database capacity >350,000 images High-definition blood cell images stored by the Analyzer

Device class Class II medical device Manufacturing approval obtained from Chinese regulatory authority in Nov 2025

Market Reality Check

Price: $1.11 Vol: Volume 59,528,950 is slig...

normal vol

$1.11 Last Close

Volume Volume 59,528,950 is slightly below the 20-day average of 64,988,838 (relative volume 0.92). normal

Technical Shares at 0.0275 are trading well below the 200-day MA of 47.31, indicating a deeply depressed trend pre-announcement.

Peers on Argus

Healthcare/Medical Devices peers show mixed moves, with names like SRTS up 0.26%...

Healthcare/Medical Devices peers show mixed moves, with names like SRTS up 0.26% while CTSO, ELUT, MDAI, and APYX are down between about 2–4%, suggesting stock-specific rather than broad sector drivers for WOK.

Historical Context

5 past events · Latest: Dec 24 (Negative)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 24	Reverse stock split	Negative	-32.9%	Announced second 1-for-100 reverse split to address Nasdaq bid-price compliance.
Nov 04	Service contract win	Positive	+11.3%	Neologics subsidiary retained for US$114,000 antibody R&D and validation services.
Oct 21	Strategic investment	Positive	+9.2%	Invested US$1 million for 10% equity in Neologics to support R&D expansion.
Oct 16	Reverse stock split	Negative	+1.6%	Planned 1-for-100 reverse split to regain compliance with Nasdaq Rule 5550(a)(2).
Oct 14	Delisting notice	Negative	-4.1%	Nasdaq determination letter for delisting after closing bid at or below $0.10.

Pattern Detected

Recent corporate/strategic news (Neologics investment and contract) tended to see positive price reactions, while capital structure and listing-compliance events around reverse splits and delisting risk saw pressure.

Recent Company History

Over the last few months, WORK Medical navigated significant listing and capital-structure changes alongside strategic expansion. In October 2025, it received a Nasdaq delisting determination tied to a sub-$0.10 bid and later executed a 1-for-100 reverse split effective October 21, 2025, followed by another reverse split announced for December 29, 2025. In parallel, the company invested US$1 million for a 10% stake in Neologics and later secured a US$114,000 service contract via that subsidiary. The current Analyzer distribution agreement extends this product- and AI-focused growth narrative despite a very low share price.

Market Pulse Summary

The stock surged +24.0% in the session following this news. A strong positive reaction aligns with t...

Analysis

The stock surged +24.0% in the session following this news. A strong positive reaction aligns with the strategically important, AI-focused nature of this announcement. The company secured exclusive 2026 East China distribution for its approved Analyzer with a minimum RMB 10 million sales target and RMB 1 million performance bond. Past Neologics-related news with clear commercial implications also saw favorable moves. However, the stock’s position far below its 200-day MA and a history of reverse splits suggest that structural and listing risks could still cap follow-through.

Key Terms

class ii medical device, gb 4793.1, support vector machine, nucleus-to-cytoplasm ratio, +2 more

6 terms

class ii medical device regulatory

"The Analyzer received manufacturing approval as a Class II medical device from a Chinese..."

A class II medical device is a product that poses moderate risk to patients and therefore must meet specific regulatory rules for safety and performance beyond basic checks but not the most stringent requirements used for highest-risk devices. For investors, this classification signals predictable but nontrivial development costs and approval steps—usually longer and more expensive than the lowest-risk products but clearer and faster than the highest-risk ones—affecting time to market, potential liabilities, and revenue forecasts.

gb 4793.1 regulatory

"…certified under applicable national and industry standards, including GB 4793.1 and YY 0648."

GB 4793.1 is a Chinese national safety standard that sets general electrical and mechanical safety requirements for laboratory, measurement and control equipment (it parallels the international IEC 61010-1 standard). Investors should care because certification under this rule is often required to sell or use such equipment in China; compliance affects market access, production cost, regulatory risk and potential liability—think of it like a safety inspection that allows a product to enter and compete in a major market.

support vector machine technical

"Through region-based level set segmentation and Support Vector Machine (SVM) algorithms..."

Support vector machine is a computer method that learns to separate items into groups by finding the best boundary between them, like drawing a fence that maximizes the distance from the nearest members on each side. Investors care because it helps turn complex data — prices, news sentiment, or financial ratios — into trading signals or risk flags with often strong accuracy and resistance to overfitting, making models more reliable for decisions.

nucleus-to-cytoplasm ratio medical

"…feature extraction algorithms such as nucleus-to-cytoplasm ratio and granularity analysis..."

The nucleus-to-cytoplasm ratio compares the size of a cell’s nucleus (the control center that holds genetic material) to the size of the surrounding cell body. A larger ratio often signals immature or abnormal cells, which pathologists use as a clue for disease activity such as cancer; for investors, changes in this measure can affect the development, regulatory review, and market value of diagnostics, therapies, or tests that rely on cell-based biomarkers. Think of it as the relative size of a control room inside a factory: if the control room grows unusually large, it can indicate the factory is operating abnormally.

granularity analysis medical

"…feature extraction algorithms such as nucleus-to-cytoplasm ratio and granularity analysis..."

Granularity analysis is the practice of breaking financial data, forecasts or operational metrics into finer, more detailed parts to reveal patterns that broad summaries hide. For investors it matters because looking at individual product lines, customer groups or time periods—like inspecting each brick instead of the whole wall—can uncover risks, growth drivers or misleading averages that affect valuation and investment decisions.

ai-automated blood cell morphology analyzer technical

"…its newly launched AI-Automated Blood Cell Morphology Analyzer (CM-B600) (the “Analyzer”)..."

A device that uses automated imaging and artificial intelligence to examine the size, shape and appearance of blood cells, flagging abnormalities and producing measurement reports without continuous human review. Think of it as a microscope with an autopilot and a smart assistant that can speed up lab work, reduce human error and lower per-test costs. Investors care because faster, cheaper, and more consistent testing can drive adoption, recurring revenue, and regulatory or reimbursement opportunities that affect commercial upside.

AI-generated analysis. Not financial advice.

Hangzhou, China, Dec. 29, 2025 (GLOBE NEWSWIRE) -- WORK Medical Technology Group LTD (Nasdaq: WOK) (“WORK Medical”, the “Company” or “we”), a supplier of medical devices in China, through its subsidiary, Work (Hangzhou) Medical Treatment Equipment Co., Ltd. and its subsidiaries in China, today announced that its subsidiary, Hunan Saitumofei Medical Treatment Technology Co., Ltd. (“Hunan Saitumofei”) has entered into a one-year exclusive distribution agreement (the “Agreement”) with Shanghai Benke Medical Technology Co., Ltd. (“Shanghai Benke”) to promote and distribute its newly launched AI-Automated Blood Cell Morphology Analyzer (CM-B600) (the “Analyzer”) in East China throughout 2026. The collaboration is expected to accelerate market access and drive large-scale commercialization of the new product.

Pursuant to the Agreement, Hunan Saitumofei has granted Shanghai Benke exclusive distribution rights for the Analyzer in East China, covering Jiangsu Province, Shanghai Municipality, and Zhejiang Province -- core markets within China’s economically dynamic Yangtze River Delta region -- from January 1 to December 31, 2026. The Agreement establishes a minimum annual sales target of RMB 10 million (approximately US$1.4 million). Shanghai Benke has prepaid a performance bond of RMB 1 million, which will be deducted from the final payment or refunded without interest upon achievement of the sales target.

The Analyzer received manufacturing approval as a Class II medical device from a Chinese regulatory authority in November 2025 and is certified under applicable national and industry standards, including GB 4793.1 and YY 0648. Leveraging high-resolution digital imaging technology, the Analyzer simulates the gold-standard workflow of manual microscopic examination. Through region-based level set segmentation and Support Vector Machine (SVM) algorithms, it automatically completes sample scanning, identification, and classification.

Powered by advanced AI-driven automation, the Analyzer delivers high imaging speed and classification accuracy. It can process up to 150 samples per batch, with an additional emergency slot, achieving an average detection time of no more than three minutes per blood smear. The system delivers classification accuracy of no less than 90% for lymphocytes, neutrophils, eosinophils, basophils, and mature white blood cells per slide. In addition, it can identify 17 subtypes of white blood cells and provides detailed morphological analyses of red blood cells (including acanthocytes, target cells, and fragments) as well as platelet characteristics (such as size classification and aggregation identification). The Analyzer also supports a database capacity of more than 350,000 high-definition blood cell images.

Notably, the Analyzer employs non-deep-learning feature extraction algorithms such as nucleus-to-cytoplasm ratio and granularity analysis, offering high interpretability and substantially reducing potential clinical risks.

Mr. Shuang Wu, Chief Executive Officer and Chairman of the Board of Directors of WORK Medical, commented: “We are pleased to announce this agency agreement shortly after receiving manufacturing approval, which underscores both the commercial readiness of the Analyzer and the market’s recognition of our technology and brand. By leveraging Shanghai Benke’s established medical device sales network and deep roots in the East China market, we aim to accelerate market penetration of the Analyzer and further strengthen WORK Medical’s nationwide brand presence. We believe this rollout in East China will serve as a benchmark for broader adoption, laying a solid foundation for future expansion across China and into international markets.”

About WORK Medical Technology Group LTD

WORK Medical Technology Group LTD, through its subsidiary, Work (Hangzhou) Medical Treatment Equipment Co., Ltd. and its subsidiaries in China, is a supplier of medical devices that develops and manufactures Class I and II medical devices and sells Class I and II disposable medical devices through operating subsidiaries in China. The Company has a diverse product portfolio comprising 21 products, including customized and multifunctional masks and other medical consumables. All the products have been sold in 34 provincial-level administrative regions in China, with 15 of them sold in more than 30 countries worldwide. The Company has received a number of quality-related manufacturing designations and has registered 17 products with the U.S. Food and Drug Administration allowing their products to enter the U.S. market. For more information, please visit the Company’s website: https://www.workmedtech.com/corporate.

Forward-Looking Statements

This press release contains forward-looking statements, including statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “aims,” “anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “plans,” “possible,” “potential,” “seeks,” “will,” and variations of these words or similar expressions that are intended to identify forward-looking statements. Any such statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Any forward-looking statements in this press release are based on the Company’s current expectations, estimates and projections only as of the date of this release and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results set forth in the Company’s annual report on Form 20-F and other documents filed by the Company with the U.S. Securities and Exchange Commission. The Company explicitly disclaims any obligation to update any forward-looking statements except to the extent required by law.

For more information, please contact:

WORK Medical Technology Group LTD
Investor Relations Department
Email: ir@workmedtech.com

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

FAQ

What are the terms of WORK Medical's exclusive 2026 distribution agreement for CM-B600 (WOK)?

Hunan Saitumofei granted Shanghai Benke exclusive rights in East China from Jan 1–Dec 31, 2026 with a minimum sales target of RMB 10 million and a RMB 1 million prepaid performance bond.

When did the CM-B600 receive regulatory approval and what class is it (WOK)?

The Analyzer received Class II manufacturing approval in November 2025 and meets applicable national and industry standards including GB 4793.1 and YY 0648.

What performance specs does the CM-B600 list for clinical labs (WOK)?

The system processes up to 150 samples per batch, has an average detection time ≤ 3 minutes per blood smear, and classification accuracy ≥ 90% for major white blood cell types.

How much commercial revenue does WORK Medical expect from the East China distribution (WOK)?

The Agreement sets a minimum 2026 sales target of RMB 10 million (approximately US$1.4 million).

What financial obligation did Shanghai Benke provide under the WOK distribution deal?

Shanghai Benke prepaid a RMB 1 million performance bond, refundable or deductible upon achieving the sales target.