On March 28, 2018 in Hong Kong, LifeTech, a leading supplier of minimally invasive cardiovascular interventional devices announced its audited overall results for the year ended December 31, 2017 (hereinafter referred to as the "reporting period").
The company maintained a steady growth:
Revenue increased by approximately 16.0% to approximately RMB409.1 million;
Gross profit increased by approximately 20.1% to approximately RMB332.0 million;
Operating profit increased by approximately 77.5% to approximately RMB192.2 million;
Profit for the year attributable to owners of the company increased by approximately 12.2% to approximately RMB163.5 million;
Earnings per share was approximately RMB0.038, representing a year-on-year increase of 5.6%.
The increase in revenue achieved during the reporting period was mainly attributable to the growth of sales volume of our primary products along with the expansion of our sales network, higher market penetration and increasing market share. The increase in net profit was mainly attributable to (i) the growth of sales; (ii) reasonable control of expenses; and (iii) increase of other income resulting from consulting services.
Core businesses achieved solid results:
Despite challenges such as the uncertain global economic environment and more fierce worldwide competition in the medical devices industry, LifeTech was able to achieve solid results for our core businesses in the reporting period. Through the efforts of our professional marketing team, LifeTech has established a global distribution network covering more than 90 countries and territories. In the year, we participated in domestic and overseas exhibitions, international academic exchanges and training for doctors and agents to communicate our innovative ideas and demonstrate our innovative products in order to enhance our international image and brand awareness, expand our sales channels and strengthen our position in the global market.
Geographically, China is still our largest market. In the reporting period, the position and presence of LifeTech in the Chinese market was further strengthened. Sales generated from the PRC market accounted for approximately 77.2% of our total revenue for 2017, representing a year-on-year increase of approximately 11.3%. For the year 2017, LifeTech achieved an approximately 34.9% leap in revenue on the international market, which was attributable to our long-term, stable sales channels and customer resources accumulated through our years of proactive overseas business development, as well as to LifeTech's aggressive product registration activities.
The structural heart diseases business, the peripheral vascular diseases business and the cardiac pacing and electrophysiology business remained LifeTech's three main product lines. The turnover contributed by the structural heart diseases business for the year 2017 was approximately RMB159.2 million, representing a growth of approximately 27.9%. LifeTech achieved an increase in sales revenue from HeartR, Cera and CeraFlex congenital heart defect occluders of approximately 7.9%, 24.0% and 41.0%, respectively. The LAmbre LAA closure system which obtained CE and CFDA certifications in June 2016 and June 2017, respectively generated revenue of approximately RMB21.1 million in the reporting period, representing a year-on-year increase of approximately 559.4%. The turnover contributed by the peripheral vascular diseases business in the same year was approximately RMB249.9 million, representing a year-on-year increase of approximately 9.4%. The revenue generated from the sales of stent grafts increased by approximately 18.9%. In the reporting period, the implantable cardiac pacemakers and associated leads that are part of the cardiac pacing and electrophysiology business were not available on the market.
Breakthroughs were made in product development and registration:
The LAmbre LAA closure system was certified by the China Food and Drug Administration (CFDA), becoming the only Chinese brand certified by CFDA.
The Ankura II stent graft system, the LawMax dilator and the SeQure snare system were certified by CFDA;
The HeartTone implantable cardiac pacemaker and the TruSense implantable cardiac pacing lead were certified by CFDA, marking the birth of the first complete Chinese pacemaker from LifeTech;
The iliac branched device was approved by CFDA for inclusion in the special approval procedure for innovative medical devices and became one of the six products of LifeTech included in the special approval procedure;
The study on the first-in-man implantation of the IBS sirolimus-eluting iron absorbable coronary stent system developed by LifeTech independently was approved by CFDA in March 2018;
In March 2018, the KONAR-MF multifunctional occluder was awarded CE certification.
In addition, the industry standard "YY/T 1553-2017 Cardiovascular implants - Cardiac occluders" developed under the leadership of LifeTech was approved by CFDA and issued in the reporting period, filling the gap in the industry standards for cardiac occluders in China and even in the world.