LifeTech Scientific Corporation (LifeTech, 1302.HK), a leading company specialized in minimally invasive interventional medical devices for cardio-cerebrovascular and peripheral vascular diseases, today announced 2021 annual results.
During the year ended 31 December 2021, the Group achieved a revenue of approximately RMB925.3 million, representing an increase of approximately RMB283.0 million or approximately 44.1%. Mainland China remained as our largest market, where sales generated from the Chinese market accounted for approximately 83.6% of our total revenue for the year ended 31 December 2021.
As for the performance of business segments, the turnover contributed by the structural heart diseases business for the year ended 31 December 2021 was approximately RMB 331.1million, representing an increase of approximately 60.4%, of which the sales of LAmbre™ LAA occluder increased by approximately 83.8% and the sales of the three CHD occluders: HeartR™, Cera™ and CeraFlex™ increased by approximately 29.6%, 88.2% and 16.6% respectively.
The turnover contributed by the peripheral vascular disease business was approximately RMB548.5million, representing an increase of approximately 33.4%, of which the sales of stent grafts and vena cava filters increased by approximately 38.2% and 15.8% respectively.
The turnover contributed by the cardiac pacing and electrophysiology business was approximately RMB45.7million, representing a growth of approximately 85.8%.
Gross profit of the Group increased by approximately 45.7% to approximately RMB747.5 million for the year ended 31 December 2021. Gross profit margin increased by 0.9% to approximately 80.8% for the year ended 31 December 2021.Operating profit increased by approximately 24.3% to approximately RMB328.7 million for the year ended 31 December 2021. Net profit attributable to owners of the Company for the year ended 31 December 2021 was approximately RMB292.5 million as compared with RMB216.1 million for the year ended 31 December 2020.
Excluding certain non-recurring items, the Group’s operating profit increased by approximately 55.5% to approximately RMB 360.3 million, while the net profit attributable to owners of the Company for the year was approximately RMB 324.0 million, representing an increase of 76.8%. 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.
LifeTech continuously strengthened its innovation capabilities and accelerated the R&D process of its pipeline products to maintain its leading position in the industry, the total R&D expenses was approximately RMB212.5 million in the year, and the Group achieved the following main progress:
l G-iliac™ Iliac Artery Bifurcation Stent Graft System, LAxible™ Left Atrial Appendage Occluder, Yuranos™ Abdominal Aortic Stent Graft System, LAnavi™ Jointed Steerable Introducer, OKcurve™ Steerable Delivery System, Freepath™ Guidance System and iCable™ Delivery Cable obtained official registration approval from the NMPA;
l Xuper™ Open Surgery Stent Graft System obtained the CE certification in European Union;
l IBS Angel™ Iron Bioresorbable Scaffold System (“IBS Angel™”) obtained registration approval from Medical Device Authority in Malaysia, being the only absorbable stent product suitable for children in the world. Meanwhile, IBS Angel™ has started clinical enrollment in China and successfully implanted in more than 10 cases;
l G-Branch™ Thoracoabdominal Artery Stent Graft System and Artery Stent Graft System (chimney graft, consists of the Ankura™ Pro Artery Stent Graft System and Longuette™ Aortic Branch Stent Graft System), were approved as innovative medical devices in China. At present, 14 products of the Company have been approved as innovative medical devices by the NMPA;
l Cinenses™ Lung Volume Reduction Reverser System has completed the enrollment of clinical trials in Europe and entered into a one-year follow-up stage with safe and effective preliminary clinical results. Meanwhile, clinical trials for this product in China are in preparation;
l G-Branch™ Thoraco-Abdominal Aortic Stent Graft System has completed the enrollment of the first in man clinical trial and the mid-term follow-up results are positive, which is currently at the stage of the pre-marketing clinical enrollment;
l LAmbre™ LAA Occluder System, IBS Titan™ Sirolimus-Eluting Iron Bioresorbable Peripheral Scaffold System and IBS Angel™ were approved in the United States by the Food and Drug Administration for “Compassionate Use”; and
l IBS™ Coronary Scaffold obtained the implied permission for conducting confirmatory clinical trials in China. The two-year follow-up results of the first in man clinical trial showed that the IBS™ Coronary Scaffold had favorable preliminary mid-term efficacy and safety in the treatment of non-complex de novo coronary artery lesions. The success rate of the clinical trial is 100%, and almost all the scaffold struts had been degraded in two years, with no malapposition during the degradation process.
Meanwhile, the total of 1,529 patent applications have been filed, of which 584 patents have been registered as at 31 December 2021, which is an important intangible asset and an internal driving force of LifeTech improving its core competitiveness in the global device market.
