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 its 2022 annual results.
During the year ended 31 December 2022, Lifetech achieved a revenue of approximately RMB1,097.3 million, increased by 18.6% year on year. The domestic sales and overseas sales of Lifetech increased by approximately 15.6% and 33.7%, respectively. china's mainland remained the largest market of Lifetech, the sales contribution from this market accounted for approximately 81.6% of the total revenue.
Gross profit increased by 16.9% year on year to RMB873.9 million, and operating profit increased by 12.1% year on year to RMB368.4 million.Net profit attributable to owners of the Company for 2022, excluding certain non-recurring items, was approximately RMB429.3 million, increased by 32.5% year on year. Such non-recurring items include (i) the other gains and losses resulting from financial assets at fair value through profit and loss and (ii) the share-based payment expenses. Considering the influence arose therefrom, the net profit attributable to owners of the Company for 2022 was approximately RMB325.3 million, increased by 11.2% year on year. Basic EPS was RMB7.7 cents, increased by 13.2% year on year.
Lifetech currently has three main business 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 2022 was approximately RMB394.6 million, increased by 19.2% year on year.
The company has diversified product portfolio of its structural heart diseases business to meet different market needs, including two generations of Left Atrial Appendage (LAA) occluders and three generations of Congenital Heart Diseases (CHD) occluders. Sales generated from CHD occluders and LAA occluders increased by 26.2% and 8.4% year on year, respectively.
In 2022, the turnover contributed by the peripheral vascular disease business was approximately RMB644.3 million, increased by 17.5% year on year.
The company provides patients with technology-leading comprehensive interventional medical treatment of peripheral vascular diseases, including vena cava filters, thoracic aortic aneurysm stent grafts, abdominal aortic aneurysm stent grafts and iliac artery bifurcation stent grafts. Sales from stent grafts of the Company increased by 23.3% year on year, while vena cava filters decreased by 4.6% year on year.
Lifetech is the first domestic manufacturer in China which has a complete product portfolio of implantable cardiac pacemakers with international-level technology and functions. In 2022, the turnover contributed by the cardiac pacing and electrophysiology business was approximately RMB58.4 million, increased by 27.8% year on year.
Independently developed innovative medical device products could benefit the Company maintains its competitiveness in the global market. In 2022, the Company continuously strengthened its innovation capability and accelerated the development process of its novel products:
‧ Fitaya™ Vena Cava Filter System, FemCross™ 35 Peripheral Balloon Dilatation Catheter and Ankura™ IIc Stent Graft System obtained official registration approval from the National Medical Products Administration (“NMPA”).
‧ Absnow™ Absorbable Atrial Septal Defect Closure System and AcuMark™ Sizing Balloon are under the registration approval 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) was approved as innovative medical device in China. At present, 15 products of the Company have been approved as innovative medical devices by the NMPA.
‧ LAmbre™ Plus LAA Closure System obtained medical insurance coverage in the US of an investigator-initiated clinical trial, and all patients enrolled will receive full medical coverage.
‧ Ankura™ Chimney 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 and are working on the clinical summary report.
‧ Aortic Arch Stent Graft System (consists of the Ankura™ Plus Aortic Arch Stent Graft System and CSkirt™ Aortic Arch Branch Stent Graft System) and Futhrough™ Endovascular Needle System have completed pre-marketing clinical enrollments in China.
‧ G-Branch™ Thoracoabdominal Artery Stent Graft System is currently at the stage of the pre-marketing clinical enrollments in China.
‧ IBS Angel™ Iron Bioresorbable Scaffold System was approved in the United States by the Food and Drug Administration for “Compassionate Use” and successfully implanted, and its pre-marketing clinical trials in China are in progress.
‧ IBS™ Sirolimus-Eluting Iron Bioresorbable Coronary Scaffold System was completed the patient enrollment of Prospective Multicenter Randomized Controlled Clinical Study (the “Phase II”) in China, and the patient enrollment of Prospective Multicenter Single-arm Target Study (the “Phase III”) has been initiated in China. The Phase II took nine months from the first enrollment in March 2022 to the completion of all enrollments. Up to now, the device and surgery success rates are both 100% and no device-related serious adverse events (SAE) have occurred.
‧ The study on the First in Man (FIM) of Concave Supra-arch branched stent-graft system was approved and it was successfully implanted for the first time in China;
‧ KONAR-MF™ Ventricular Septal Defect Occluder was successfully implanted at the Pediatric Heart Disease and Adult Congenital Heart Disease Center of Showa University Hospital, which was the first implantation and first clinical application of Lifetech’s products in Japan; and
‧ LAmbre™ LAA Closure System was successfully completed a dozen of implantations in Korea after receiving registration approval from the Ministry of Food and Drug Safety.
Intellectual property is an important intangible asset of Lifetech, and is also an internal driving force for improving the core competitiveness in the medical device market. As at the year ended 31 December 2022, Lifetech had filed a total of 1,828 valid patent applications, of which 749 patents were registered and valid.
Looking ahead, the Chairman and CEO of Lifetech, Mr. XIE Yuehui said:
“Despite the challenging external environment in 2022, we achieved steady progress in R&D innovation, product sales and international development, which brought solid growth of the Company. Looking ahead, we will further consolidate our two core development strategies of ‘innovation and ‘global development’ and 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 enhance the Company's ability to respond the future challenges , so as to realize our ambitious goals in the field of global healthcare as early as possible, and to create greater value for patients, doctors, shareholders and all stakeholders ."