- Revenue increased by 20.4%, net profit attributable to owners of the
Company increased by 34.4% after excluding certain non-recurring items
LifeTech Scientific Corporation (the “Company” or “Lifetech”), a leading company specialized in minimally invasive interventional medical devices for cardio-cerebrovascular and peripheral vascular diseases announces the unaudited consolidated results of the Company and its subsidiaries (collectively the “Group”) for the six months ended 30 June 2022 (the “Reporting Period”).
During the six months ended 30 June 2022, the Group achieved a revenue of approximately RMB555.2 million with an increase of approximately RMB94.1 million or approximately 20.4% as compared with the corresponding period of 2021. Mainland China remained our largest market, as the sales generated from this market accounted for approximately 83.2% of our total revenue for the six months ended 30 June 2022.
Lifetech currently has three main product lines, including structural heart diseases business, peripheral vascular diseases business and cardiac pacing and electrophysiology business.
The turnover contributed by the structural heart diseases business for the six months ended 30 June 2022 was approximately RMB194.9 million, representing an increase of approximately 22.5% as compared with the corresponding period of 2021.
The company has diversified product portfolio of its structural heart diseases business to achieve differentiated marketing strategies, which mainly include LAA occluder and three generations of congenital heart diseases occluders. As compared with the corresponding period of 2021, the revenue generated from the sales of LAA occluder and congenital heart diseases occluders increased by approximately 13.1% and 30.8%, respectively. For the three generations of congenital heart diseases occluders, the revenue generated from HeartR occluders, Cera occluders and CeraFlex occluders increased by approximately 9.1%, 42.6% and 34.6%, respectively.
Lifetech also provides patients with technology-leading comprehensive interventional medical devices treatment of peripheral vascular diseases. During the six months ended 30 June 2022, the turnover contributed by the peripheral vascular diseases business was approximately RMB316.6 million, representing an increase of approximately 10.4% as compared with the corresponding period of 2021.
The products offered in the peripheral vascular diseases business mainly included vena cava filters, thoracic aortic stent grafts, abdominal aortic stent grafts and iliac artery bifurcation stent grafts. Among these products, the market shares of vena cava filters and stent grafts occupy a leading position in the Chinese market. As compared with the corresponding period of 2021, the revenue generated from the sales of stent grafts increased by approximately 13.9% and vena cava filters decreased by approximately 10.1%.
The turnover contributed by the cardiac pacing and electrophysiology business for the six months ended 30 June 2022 was approximately RMB43.7 million, representing a growth of approximately 187.5% as compared with the corresponding period of 2021.
The Company is the first manufacturer in China that has a complete product portfolio of implantable cardiac pacemakers with international-level technology and functions. As compared with the corresponding period of 2021, the revenue generated from the sales of implantable cardiac pacemakers and cardiac pacing leads increased by approximately 218.2% and 32.6%, respectively.
During the six months ended 30 June 2022, the Group achieved a gross profit of approximately RMB441.6 million, representing an increase of approximately 17.9% as compared with the corresponding period of 2021.
Net profit attributable to owners of the Company for the six months ended 30 June 2022, excluding certain non-recurring items, was approximately RMB247.9 million, representing an increase of approximately 34.4%. Such non-recurring items include (i) the other losses arising from financial assets at fair value through profit or loss related to the investment in Ally Bridge Group Innovation Capital Partners III, L.P. and (ii) the share-based payment expenses. Considering the influence arose therefrom, the net profit attributable to owners of the Company for the six months ended 30 June 2022 was approximately RMB214.8 million, with an increase of approximately 5.1% as compared with the corresponding period of 2021.
In the first half of 2022, the Company continuously strengthened its innovation capabilities and accelerated the development of products, so as to maintain its leading position in the industry and to provide more effective treatment to patients around the world. During the Reporting Period, the Company has made the following main progress in the R&D field:
● Fitaya™ Vena Cava Filter System and FemCross™ 35 Peripheral Balloon Dilatation Catheter obtained official registration approval from the National Medical Products Administration;
● Absnow™ Absorbable Atrial Septal Defect Closure System is under the registration approval in China;
● Aortic Stent Graft System (consists of the Ankura™ Pro Aortic Stent Graft System and Longuette™ Aortic Branch Stent Graft System) has completed its one-year clinical follow-up in China;
● G-Branch™ Thoracoabdominal Aortic Stent Graft System, Aortic Arch Stent Graft System (consists of the AnkuraTM Plus Aortic Arch Stent Graft System and CSkirtTM Aortic Arch Branch Stent Graft System) and FuthroughTM Endovascular Needle System are at the stage of the pre-marketing clinical enrollments in China;
● IBS Angel™ Iron Bioresorbable Scaffold System (the only absorbable scaffold product suitable for children in the world) was approved in the United States by the Food and Drug Administration for “Compassionate Use” and it has been successfully implanted. The pre-marketing clinical trials of the novel device in China are in progress;
● IBS™ Sirolimus-Eluting Iron Bioresorbable Coronary Scaffold System obtained the implied permission for conducting confirmatory clinical trials in China and the trial is well underway;
● KONAR-MF™ Ventricular Septal Defect Occluder was successfully implanted at the Showa University Hospital, which was the first implantation and first clinical application of our products in Japan.
Meanwhile, the total of 1,567 valid patent applications have been filed, of which 668 patents have been registered as at 30 June 2022.
The Company also actively seeks cooperation opportunities in the industry. The Innovative Surgical Robots (including Quantum Integrated Robotized Platform for Interventional Oncology and next generation versions, etc.), which the Company cooperated with Quantum Surgical SAS and Ally Bridge Group, has completed the type testing in 2021, and submitted the registration application in China after the Innovative Surgical Robot obtained the certificate of origin, which is currently under approval.
As for the MRI-conditional pacemakers and the MRI-conditional leads, which the Company cooperated with Medtronic, Inc in 2021, currently, are in the process of type testing in China.
Looking ahead, the Chairman and CEO of Lifetech, Mr. XIE Yuehui said:
“Despite the challenging external environment in the first half of 2022, we continued to make steady progress in R&D innovation and international development, which brought solid growth in performance. Looking ahead, we will further consolidate our two core development strategies of "innovation" and "internationalization" and continue to promote the steady and rapid development of our existing business in the global market with leading technology, optimum quality and globalized sales networks, so as to consolidate and continuously increase the global market share of our products and the international influence of the Group. At the same time, we will actively seek and seize new development opportunities in order to realize our ambitious goals in the field of global healthcare as early as possible."