LifeTech Scientific Corporation, the leading supplier of minimally invasive interventional medical devices to treat cardiovascular diseases ("The Company or LifeTech") and its subsidiaries ("The Group") announces its comprehensive financial results as of June 30, 2017 (“the Reporting Period”).
Annual Performance:
During the Reporting Period, revenue of the Group was approximately RMB175.9 million, with an increase of approximately 12.6% as compared to the same period of last year. Gross profit was approximately RMB141.0 million, with an increase of approximately 13.8% as compared to the same period of 2016. Operating profit was approximately RMB91.2 million, representing a year-on-year growth of approximately 57.0%. Profit for the period attributable to owners of the Company was approximately RMB84.2 million, representing an increase of approximately 62.3%, as compared to the same period of 2016. The basic EPS was RMB 0.019.
Business Development:
Despite facing the challenges of the uncertain global economic environment and fierce competition in the market, coupled with the revolution of medical devices bidding process in China and more stringent price regulation, the Group still achieved solid growth of its core businesses during the Reporting Period. China is still the largest market of the Group, and sales generated from the Chinese market accounted for approximately 78.4% of the total revenue for the six months ended 30 June 2017, with a steady year-on-year growth of approximately 10.3%. During the same period, our overseas market experienced a sales growth of approximately 21.6%, which was mainly due to the successful strategic sales adjustment and product promotion in our international market. At the present, the Group has distributors in numerous countries across Asia, Africa, North America, South America and Europe, with the sales network spreading all over the world.
As for the business divisions, during the Reporting Period, the sales contribution all generated from the structure heart diseases business and the peripheral vascular diseases business, representing a turnover of approximately RMB62.6 million and RMB113.3 million, a growth of approximately 33.2% and 3.8% respectively.
In order to improve brand influence in the industry and further enhance market presence in the world, the Group participated in a numerous academic events and marketing activities during the Reporting Period, and via interventional procedure live cases, symposiums, workshops and “Lifetech Knowledge Exchange Program” constantly promoting our innovative medical devices among doctors in the world. Moreover, the Group took a part in many charitable activities during the Reporting Period, including together with the Philippines Heart Foundation held a charitable treatment for the six children with a congenital heart defect (CHD), and headed to Aba prefecture in Sichuan province in China to conduct a voluntary CHD screening for local children.
Achievements from Product Development:
The Group has been committing to bring safe and high-quality medical devices for millions patients all around the world. During the Reporting Period, we had outstanding achievements in our products:
‧ LAmbre™ Left Atrial Appendage (LAA) Closure System was granted with the registration certificate issued by the CFDA, which made the product is the only Chinese brand to possess this certification.
‧ Four specifications of pacing lead was granted with the registration certificate issued by the CFDA. The pacing lead will be used together with the HeartTone™ implantable pacemaker, and the registration application of the pacemaker has been submitted and accepted by the CFDA.
‧ LawMax™ dilator was approved by the CFDA and has obtained its registration certificate in China.
‧ Iliac Bifurcation Stent Graft System has been approved by the CFDA as an innovative medical device in China, which made the product is the sixth product to be included in the “Priority Review and Approval Procedure for Medical Devices” by the CFDA.
Prospects:
The Group will continue relying on its two core businesses, namely structural heart diseases business and peripheral vascular diseases business to drive its growth potential in the second half of 2017. As for the LAmbre™ LAA Closure System is available both in the European and Chinese market, we believe that the newly-launched product will strengthen our leading position in the field of structural heart diseases. Moreover, we expect that the cardiac pacing and electrophysiology business will be a significant part of our core businesses, bringing a new leap for the development of the Group in the future.
In addition, the Group will continuously invest in product R&D and technology innovation to response to the various treatment demands for doctors and patients in the world. Strong R&D capability, broad product portfolio and pipeline are the key for the Group to realize its mission, broaden its global market and achieve sustainable growth in the future.
Furthermore, the Group will continuously expand its distribution networks and enhance network management, participating high-end academic events and cooperating with doctors to constantly improve its brand influence and increase doctors` recognition of its premium products.
Looking ahead, the Group will constantly provide global doctors and patients with innovative medical devices and spare no effort to create more values for its shareholders and business partners.
