Aug. 27, 2018-Hong Kong The minimally invasive cardiovascular interventional devices supplier Lifetech (the Company) and its subsidiaries (the Group) published their comprehensive results for the six months ending as at Jun. 30, 2018 (in the reporting period).
Substantial Growth Recorded in Results
In the reporting period, the Group's earnings grew by about 40.4%, reaching 247 million yuan YoY. Gross profit increased by 44.8%, or 204 million yuan. Operating profit increased by about 2.6%, or 93.53 million yuan YoY. The net profit attributable to the Company's owner is about 67.33 million yuan, declining over the same period last year. The decline is mainly ascribed to the fact that the Company recognized about 27.7 million yuan in revenue from consulting services related to the sale of a subsidiary Beijing Puhui Biomedical Engineering Co., Ltd. during the same period last year. Income tax increase is mainly due to income tax on profits allocated by Lifetech Scientific (Shenzhen) Co., Ltd. to overseas parent company. In the same period, the option amortization costs increase by 8 million yuan. Excluding the above factors, the net profit attributable to the Company's owner increases by about 51.1%, or 96.72 million yuan.
Business Grows Rapidly in the Reporting Period
In the reporting period, the sales volume in China accounts for about 78.5% of total revenue, up by 40.6% YoY. Over the same period, the sales volume in the international market increases by 39.6% YoY due to the successful strategic adjustment and promotion campaign of the Group in many countries and regions. At present, our dealers are located in many countries in Asia, Africa, North America, South America and Europe. The sales network covers all parts of the world. From the perspective of the business, the Group's sales contribution comes from the structural heart disease business and peripheral vascular disease business. In the reporting period, the two businesses contribute about 82.93 million yuan and 164 million yuan, up by 32.4% and 44.7% respectively YoY.
At the same time, in order to further enhance the Group's influence in the industry and further increase the Group's global market share, the Group actively participated in various academic and marketing activities at home and abroad, and made numerous presentations at the world's leading academic conferences in the field of cardiovascular intervention in the reporting period. It continued to conduct promotion and publicity of its innovative minimally invasive cardiovascular interventional device products and brands to the globe through live surgery, satellite meetings and seminars.
Progress in Research and Development
- KONAR-MFTM multifunctional occluder has been certified by EU CE.
- The research on IBSTM iron-based absorbable drug-eluting coronary stent system first implanted into human body was approved by CFDA. In March this year, the procedure that IBSTM iron-based absorbable drug-eluting coronary stent system was first implanted into human body was broadcast on CIT 2018.
- The program "three-level prevention and treatment system of congenital heart disease and key technology innovation and application" jointly completed by Lifetech and Guangdong General Hospital won the First Prize of Guangdong Science and Technology in 2017.
Prospect & Vision
The Group will continue to achieve potential growth in the second half of the year by consolidating and developing two core businesses (namely, structural heart disease and peripheral vascular disease). At the same time, while the sales volume of LAmbreTM LAA occluder system constantly increased and HeartToneTM implantable cardiac pacemaker began to sell in the second half of the year, the two key products will facilitate the Group to leap in the future.
