LifeTech Scientific Corporation, the world’s leading supplier of minimally invasive interventional medical devices designed for cardiovascular and peripheral vascular diseases ("LifeTech" or "The Company") and its subsidiaries ("The Group") announces its comprehensive financial results as of June 30, 2016 (“the Reporting Period”).
Financial Highlights:
The revenue was approximately RMB156.2 million for the six months ended 30 June 2016, with an increase of approximately 4.8% as compared to the same period of last year. Operating profit was approximately RMB58.1 million, representing a year-on-year growth of approximately 10.9%. Profit attributable to shareholders of the Company was approximately RMB51.9 million for the six months ended 30 June 2016, with an increase of approximately RMB254.1 million, as compared to the loss of approximately RMB202.2 million for the six months ended 30 June 2015. Excluding effect on option and convertible bonds, this figure was RMB59.8 million, representing a growth of 28.4%. The basic EPS was RMB 0.013, and the Board did not recommend the payment of any interim dividend for the six months ended 30 June 2016.
Stable Operation:
Facing with the uncertain global economic environment, continuous competition in the market and on-going market weakness, our business is full of challenges during the six months ended 30 June 2016. Currently, we have distributors in numerous countries across Asia, Africa, North America, South America and Europe, with sales network spreading all over the world, and China is still our largest market. The sales generated from the China market accounted for approximately 80.0% of our total revenue for the six months ended 30 June 2016, and domestic sales experienced a steady growth of approximately 10.0% for the six months ended 30 June 2016 as compared to the corresponding period in 2015. During the Reporting Period, the international market had recorded a modest decrease in revenue as compared to the same period in 2015, which was mainly due to the uncertain global economic environment and it is in the Group’s transition period of strategic adjustment in some regions.
During the Reporting Period, the turnover contributed by the peripheral vascular diseases business for the six months ended 30 June 2016 was approximately RMB109.2 million, representing a significant growth of approximately 25.5%. The turnover contributed by the congenital heart diseases business and surgical vascular repair business (the products we offered in the surgical vascular repair business are mainly heart valves) for the six months ended 30 June 2016 was approximately RMB46.7 million and RMB331,000 respectively.
Product Development:
The Group has been committed to developing innovative products and bringing safe and effective cardiovascular and peripheral vascular minimally invasive medical devices to millions patients. During the Reporting Period, we had outstanding achievements in our products:
• GoldenFlow™ peripheral stent has obtained CE Mark approval in Europe.
• FemFlowTM Drug-Eluting Peripheral Balloon Catheter has formally passed the special review application of CFDA and approved as an innovative medical device.
• The LAmbreTM left atrial appendage occluder system has obtained CE Mark approval in Europe.
• For Ankura II Thoracic Aortic Aneurysm (“TAA”) stent graft system, we have completed the twelve-month postoperative follow-up for the last subject. The centers are now in concluding stage.
• The SteerHDTM delivery sheath has obtained its registration certificate in China.
• IrisFITTM patent foramen ovale occluder have been approved as an innovative medical device.
•We have been continuously making good progress in pacemaker project. The pacemaker product line has met the manufacturing qualification requirements with the support from Medtronic. In August 2016, the HeartToneTM pacemaker has been approved as an innovative medical device by CFDA.
Global Academic and Marketing Activity:
During the Reporting Period, the Group has actively participated in global academic exchange and marketing activities to enhance the high-end academic image and brand influence in the global market:
• In March 2016, LifeTech Scientific Corporation had been invited to host a satellite conference "Experience Sharing and Discussion on Occlusion of Congenital Heart Diseases" on an academic summit "PICS CSI ASIA 2016" in Dubai, and shared clinical experiences of LifeTech`s products applying on congenital heart diseases with famous experts in the field.
• In March 2016, LifeTech Scientific Corporation had been invited to attend the Biannual Inter University Joint Symposium. On the symposium, three complex and difficult interventional occlusion operations of perimembranous ventricular septal defect were live transmission broadcast, in which HeartR Symmetric VSD and HeartR Eccentric VSD, which were independently developed by LifeTech.
• In April 2016, LifeTech cooperated with experts on congenital cardiovascular diseases from the People’s Hospital of Tibet Autonomous Region and West China Second University Hospital of Sichuan University to perform voluntary screening of congenital heart diseases on children in Naqu County, Tibet.
• Catheter Interventions in Congenital and Structural Heart Diseases (“CSI-2016”) has been successfully held in Frankfurt, Germany. Lifetech, as an outstanding enterprise in researching, developing, and manufacturing of medical device for cardiovascular and cerebrovascular microinvasive intervention, was invited to attend this internationally cutting-edge academic event again.
• The Second Workshop of Endovascular Therapy Technology was organized by Fuwai Hospital of Chinese Academy of Medical Sciences on 29 June 2016. The Workshop was based on the seminars of peripheral vascular disease treatment, together with the live cases broadcasting and discussion of difficult cases. As the key agenda to the workshop, one TEVAR live case transmission from Fuwai Hospital to the advanced Endovascular and Coronary Intervention Global Summit (C3) held in Orlando America.
Future Prospects:
The Group will continue to rely on its two core businesses, namely congenital heart diseases business and peripheral vascular diseases business. The Group believes that the revolutionary LAmbreTM LAA occluder will strengthen our leading position in the field of congenital heart diseases business and in the fled of structural heart diseases business.
With advanced technologies and the ability to develop new patented products, the Group will continue to make breakthrough in R&D and commercialization of cardiovascular, peripheral vascular and electrophysiology products. By virtue of diversified innovative products, perfect product developing plan, powerful R&D strength, and wide global sales network, the Group is expecting to enjoy the great growth opportunity from the global market. Meanwhile, the Group will take the future challenge and make progress based on strict internal control, high efficiency management and active attitude, offer quality services for global doctors and patients, and spare no effort to create more values for the partnership and shareholders.
