LifeTech Scientific Corporation Announced 2024 Interim Results: International Business Increased by 30%, Net Profit Margin Attributable to Owners of the Company Reached 35.8%
PR Newswire
SHENZHEN, China, Aug. 30, 2024
SHENZHEN, China, Aug. 30, 2024 /PRNewswire/ -- LifeTech Scientific Corporation (the "Company" or "LifeTech", Stock code: 1302.HK), a company specializing in minimally invasive interventional medical devices for cardio-cerebrovascular and peripheral vascular diseases, together with its subsidiaries (the "Group") announced the consolidated results for the six months ended 30 June 2024 (the "Reporting Period").
-- International business achieved sustained rapid growth: The revenue of
the Group was approximately RMB652.8 million during the Reporting Period,
representing a year-on-year growth of approximately 2.1%. Overseas sales
of the Group increased by approximately 29.8% as compared with the
corresponding period of 2023, has maintained sustained rapid growth,
showing the sound and fast development of the international business of
the Group.
-- Stable profitability: Gross profit of the Group increased by
approximately 2.1% year-on-year to approximately RMB515.4 million for the
six months ended 30 June 2024. Gross profit margin was approximately
78.9%, being the same with the corresponding period of 2023. Excluding
non-recurring items[1], net profit attributable to owners of the Company
was approximately RMB233.6 million, and the net profit margin
attributable to owners of the Company was approximately 35.8%, fully
demonstrating the Company's consistently stable profitability.
([1]) Such non-recurring items included (i) the other gains arising from
financial assets at FVTPL were approximately RMB32.9 million, and (ii) the
share-based payment expenses were approximately RMB61.3 million.
International Business Achieved Significant Growth, Domestic Market Solidified Foundation for Development
In the first half of 2024, the Company steadfastly pursued its mission to meet unmet clinical treatment needs worldwide through a strategic lens focused on innovation and global outreach. During the Reporting Period, the Group has showcased its commitment by rolling out a rich product portfolio of cutting-edge technology and premium academic services, alongside the synergistic amalgamation of its expertise in branding, patents, distribution networks, clinical trials, market registration, and management of global operations. With the effective implementation of the internationalization development strategies, the Group's international business has maintained sustained rapid growth. The revenue generated from overseas market of the Group increased by approximately 29.8% as compared with the corresponding period of 2023, which accounted for about 24.9% of the total revenue. Meanwhile, Asia (excluding China's mainland) and Europe were the two largest overseas market of the Group, which accounted for approximately 10.9% and 10.0%, respectively.
China's mainland remained the foundation and the largest market of the Group. During the Reporting Period, the domestic sales of the Group decreased by approximately 4.7% as compared with the corresponding period of 2023, which accounted for approximately 75.1% of the total revenue. The Group's key products, including congenital heart disease $(CHD)$ occluders, left atrial appendage $(LAA.AU)$ occluders, aortic stent grafts, and vena cava filters, have various innovation generations, maintaining the leading position in China market with wide market coverage and sound development foundation. Meanwhile, the Group took more healthy, solid and sustained business development strategies, continuously facilitating the clinical registration and commercialization of new products to actively address the changes and challenges arising in the market and the industry.
Core Business Demonstrated Development Resilience
Structure Heart Diseases $(SHD.SI)$ Business
The products offer by the Group in the SHD business mainly include CHD occluders and LAA occluders. The turnover contributed by the SHD business for the six months ended 30 June 2024 was approximately RMB271.2 million, representing an increase of approximately 11.2% as compared with the corresponding period of 2023. The revenue generated from the sales of LAA occluders increased by approximately 16.0%. This novel device is the Chinese branded LAA occluders with the largest market share among domestic peers in the global market. The Group is currently selling three generations of CHD occluders, aiming to satisfy various market needs through its differentiated product strategies. During the Reporting Period, the revenue generated from the sales of CHD occluders increased by approximately 6.4% as compared with the same period of 2023. The Group has a diversified product portfolio in the treatment of SHD, and continuously catering the increasing clinical needs both domestically and internationally through technology innovation and product upgrades, to further refine the sales layout in the global market.
Peripheral Vascular Diseases (PVD) Business
The Group provides global patients with technology-leading comprehensive interventional medical devices treatment of PVD, including vena cava filters, thoracic aortic aneurysm stent grafts, abdominal aortic aneurysm stent grafts and iliac artery bifurcation stent grafts. During the Reporting Period, the turnover contributed by the PVD business was approximately RMB380.7 million, representing a growth of approximately 5.0% as compared with the same period of 2023. Among these products, the market shares of vena cava filters and stent grafts occupy a leading position in the domestic market. The revenue generated from the sales of stent grafts and vena cava filters increased by approximately 5.1% and 0.9% year-on-year, respectively. The current marketed products together with pipeline products of the Group's PVD business is expected to provide patients with unprecedented complete endovascular solutions, which could bring the Group with a long-term competitive edge in the treatment of PVD in the global market.
Cardiac Pacing and Electrophysiology $(CPE)$ Business
The Group is the first domestic manufacturer in China which has a complete product portfolio of domestic implantable cardiac pacemakers with international-level technology and functions. During the Reporting Period, the turnover contributed by the CPE business was approximately RMB0.9 million, representing a year-on-year decrease of approximately 97.3%. The decrease was mainly due to the relocation of the pacemaker production line, which required re-validation of equipment and mandated a quality system assessment before the resumption of production. The Company's implantable cardiac pacemaker compatible with magnetic resonance imaging ("MRI") is in the domestic registration stage, which will enrich the product portfolio of the Group's CPE business.
Innovation at the Core to Build Long-term Competitiveness
Independently developed innovative medical device products could maintain the long-term competitive strengths of the Group to support its solid and sustained development. With a robust lineup of products currently ongoing research and development, as well as under clinical trial process, the Group is at the forefront of innovation, boasting products with substantial growth potential and broad market appeal. The strategic approach makes the Group could able to overcome future challenges head-on in the healthcare industry and benefit from its independent innovation in the long run. During the Reporting Period, research and development expenses of the Group was approximately RMB139.9 million, and the Group have achieved the following milestones:
Product Commercialization in Progress
-- DiAcu$(TM)$ Single Use Endobronchial Ultrasound Aspiration Needle and Distal Access Catheter Kits have obtained the National Medical Products Administration ("NMPA") certification; -- HeartR(TM) PDA Occluder, Cera(TM) PDA Occluder and CeraFlex(TM) PDA Closure System have obtained the CE MDR (Medical Device Regulation) certification. Such products have previously obtained the CE MDD (Medical Device Directive) certification; -- Aortic Stent Graft System (consists of the Ankura(TM)Pro Aortic Stent Graft System and Longuette(TM) Aortic Branch Stent Graft System), Aortic Arch Stent Graft System (consists of the Ankura(TM) Plus Aortic Arch Stent Graft System and CSkirt(TM) Aortic Arch Branch Stent Graft System), Peripheral Balloon Dilatation Catheter (Large diameter), Futhrough(TM) Endovascular Needle System, Balloon Guided Catheter, Affistent(TM)Tracheal Stent System, Disposable Vacuum Aspiration Pump and Intracranial Aspiration Catheter are pending registration approval in China; -- Fitaya(TM)Vena Cava Filter System is under registration approval of CE certification; -- Thoracoabdominal Artery Stent Graft System (consists of the G-Branch(TM)Thoracoabdominal Aortic Stent Graft System, SilverFlow(TM)PV Peripheral Vascular Stent Graft System and Aortic Extension Stent Graft System) have completed its one-year clinical follow-up in China and are working on the clinical summary report; -- CS(TM) Concave Supra-arch Branched Stent-Graft System, Cera(TM) PFO Occluder and Cinenses(TM) Lung Volume Reduction Reverser System are currently at the stage of the pre-registration clinical enrollment in China; -- X-Clip(TM) Mitral Value Clip System and X-Clip(TM) Steerable Guide System are at the stage of the pre-registration clinical preparation in China; -- IBS Titan(TM) Sirolimus-Eluting Iron Bioresorbable Peripheral Scaffold System is currently at the stage of clinical enrollment in Europe, its CE registration application has been submitted; and
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