LifeTech Scientific Corporation(1302.HK) Announces 2023 Interim Results

LifeTech Scientific Corporation (the “Company” or “Lifetech”), a leading company specialized in minimally invasive interventional medical devices for cardio-cerebrovascular and peripheral vascular diseases, today announced the unaudited consolidated results of the Company and its subsidiaries (collectively the “Group”) for the six months ended 30 June 2023 (the “Reporting Period”).


Financial Performance

During the six months ended 30 June 2023, the Group achieved a revenue of approximately RMB639.5 million, increased by 15.2% year on year. The domestic sales and overseas sales of the Group increased by approximately 11.3% and 34.4%, respectively. China's mainland remained the largest market of the Group, where the revenue generated from accounted for approximately 80.4% of the total revenue.


Gross profit of the Group increased by approximately 14.3% year on year to approximately RMB504.8 million. Operating profit increased by approximately 7.3% year on year to RMB255.2million. Net profit attributable to owners of the Company for the six months ended 30 June 2023, excluding certain non-recurring items, was approximately RMB255.2 million, increased by approximately 2.9% year on year. Such non-recurring items include (i) the other losses arising from financial assets at fair value through profit or loss  and (ii) the share-based payment expenses. Considering the effects from such non-recurring items, the net profit attributable to owners of the Company for the six months ended 30 June 2023 was approximately RMB220.2 million, with an increase of approximately 2.5% as compared with the same period of 2022.


Performance of Main Business

The Company currently has three main business lines, namely 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 2023 was approximately RMB243.9 million, increased by 25.1% year on year. The Company has diversified product portfolio to cover a wide spectrum of the structural heart diseases business, including but not limited to, LAA occluders and three generations of congenital heart diseases occluders, namely HeartR, Cera and CeraFlex. As compared with the corresponding period of 2022, the revenue generated from the sales of LAA occluders and congenital heart diseases occluders increased by approximately 31.2% and 24.2%, respectively.


During the six months ended 30 June 2023, the turnover contributed by the peripheral vascular disease business was approximately RMB362.7 million, increased by approximately 14.6% year on year. The products offered in the peripheral vascular diseases business mainly include, vena cava filter, Thoracic Aortic Aneursy stent grafts, Abdominal Aortic Aneursy stent grafts and Iliac Artery Bifurcation stent grafts. As compared with the corresponding period of 2022, the revenue generated from the sales of stent grafts and vena cava filters increased by approximately 15.1% and 7.6%, respectively.


The Company is the first manufacturer in China which has a complete product portfolio of domestic implantable cardiac pacemakers with international-level technology and functions. The turnover contributed by the cardiac pacing and electrophysiology business for the six months ended 30 June 2023 was approximately RMB32.9 million, decreased by 24.7% year on year.


Progress of Research and Development

In the first half of 2023, the Company continuously strengthened its innovation capabilities and accelerated products R&D, achieving milestones as the follow:

• Aegisy Vena Cava Filter, AcuMark  Sizing Balloon, ZoeTrack  Super Stiff Guidewire and SeQure Snare System have obtained the CE MDR (Medical Device Regulation) certification. Such products have previously obtained the CE MDD (Medical Device Directive) certification;

• Ankura Chimney Aortic Stent Graft System (consists of the Ankura Pro Aortic Stent Graft System and LonguetteAortic Branch Stent Graft System), Peripheral thrombus aspiration catheter and Distal Access Catheter Kits are pending registration approval in China;

• G-Branch Thoracoabdominal Artery Stent Graft System has completed pre-marketing clinical enrollments and is currently under clinical follow-up in China;

• Aortic Arch Stent Graft System (consists of the Ankura Plus Aortic Arch Stent Graft System and CSkirt Aortic Arch Branch Stent Graft System) is currently still under clinical follow-up in China;

• Futhrough Endovascular Needle System has completed its pre-marketing clinical enrollments and the clinical summary report was under approval;

• Concave Supra-arch branched stent-graft system has fully completed the study on the first in man (“FIM”) in China;

• The study on the FIM of X-Clip Mitral Valve Clip System was approved and successfully implanted for the first time in China;

• IBS Angel Iron Bioresorbable Scaffold System (the only absorbable stent product suitable for children globally) obtained CE MDR certification in Europe; and

• IBS Sirolimus-Eluting Iron Bioresorbable Coronary Scaffold System has completed the clinical enrollment in the China Prospective Multicenter Single-arm Target Study (the “Phase III”). The three-year follow-up of the feasibility of FIM clinical study has been successfully completed and the results were published online on the authoritative international medical journal.


Intellectual property is an important intangible asset of the Group, and it’s also an internal driving force to improve the Group’s core competitiveness in the medical device market. During the six months ended 30 June 2023, the Group has filed a total of 1,904 valid patent applications, of which 842 patents were registered and valid.


Project Cooperation

In 2019, the Company together with ABG Innovation-Quantum Limited and Quantum Surgical SAS, jointly established a JV company to focus on the R&D and commercialisation of specified products (including Quantum Integrated Robotic Platform for Interventional Oncology and next generation versions, etc.) (the “Innovative Surgical Robot”) to benefit cancer patients in China. In August 2023, the Innovative Surgical Robot has been approved by the National Medical Products Administration in China.


In 2023, the Company entered into a strategic cooperation agreement with Jenscare Scientific in respect of potential cooperation including but not limited to business development, project investments and financing in China’s mainland and overseas. The Company believes that the cooperation will create synergy with the Group’s business and international strategy and provide the Group with the chance to generate further revenue with an aim to enhance the profitability of the Group as a whole.


Looking ahead, the Chairman and CEO of Lifetech, Mr. XIE Yuehui said:

In the first half of 2023, we continued to make steady progress in R&D, product sales and international market development, presenting a great business vitality and development potential. Looking ahead, we will further consolidate our two core development strategies of ‘innovation’ and ‘global development’, continue to promote the steady and rapid growth of our existing business in the global market. At the same time, we will actively seek and seize new development opportunities to realize our goals in healthcare industry as early as possible, and to create a greater value for patients, doctors, shareholders and all stakeholders."


About LifeTech Scientific Corporation:

Established in 1999, LifeTech Scientific Corporation (Stock Code: 1302.HK) is committed to the R&D, manufacture, and sales of minimally invasive interventional medical devices for cardio-cerebrovascular and peripheral vascular diseases. The company provides patients with innovative solutions in the treatment of structural heart diseases, peripheral vascular diseases, and bradycardia, and the Company also expands its business scope in respiratory interventional business, neuro interventional business and interventional oncology business. As of 30 June 2023, over 1,900 patents have been filed of the Company, and its sales network has penetrated more than 100 countries and regions around the world.