Shanghai, China, 29 March 2022 - Shanghai MicroPort Endovascular MedTech (Group) Co., Ltd. (hereafter referred to as "Endovastec™" or the “Group”) today announced the annual results of the Company and its subsidiaries for the 12 months ended December 31, 2021 (hereafter referred to as the "Reporting Period"). In the reporting period, the Group recorded revenue of RMB 685 million, representing an increase of 45.59% as compared to the corresponding period of last year, with the net profit RMB 363 million, representing an increase of 45.15%. The net profit attributable to shareholders was RMB 316 million with an increase of 47.17%. The net profit excluding non-recurring gains and losses was RMB 289 million, an increase of 51.08%.
In 2021, the COVID-19 pandemic still recurred in some regions, however the number of related surgeries in the hospitals basically returned to normal level and showed a trend of accelerating increase. Endovastec™ firmly implemented the sales strategy of channel sinking, further expanded the sales team, strengthened the expansion of sales channels, and increased online and offline medical training in innovative products approved in recent years, and promoted the sustained rapid growth of the Group's sales performance.
R&D Innovation Deepens with Flagship Products Grows Steadily
Endovastc™ gradually changed the role from follower to leader in technology since it has long adhered to R&D innovation with independent intellectual property. In 2021, the independently developed Ryflumen™ Peripheral High-Pressure Balloon Dilatation Catheter and Fontus™ Branched Stent Graft System in Surgical Operation received the registration certificate from China’s National Medical Products Administration (NMPA). In January 2022, Talos™ Thoracic Aortic Stent-Graft System received markeing approval, further enrich the Group’s product portfolio. In addition, Vflower™ Venous Stent System completed all clinical trials, and became Endovastc™’s 6th product to enter the Special Approval Procedure of Innovative Medical Devices (Green Path), leading in domestic market.
As to the date, Endovastec™ has 13 products obtained the registration certificate issued by NMPA and 5 products received CE marking, to form a comparatively complete product pipeline is gradually formed in the field of aortic and peripheral vascular intervention. The outstanding performance of core innovative products, such as Castor™ Branched Aortic Stent-Graft and Delivery System, Minos™ Abdominal Aortic Stent-Graft and Delivery System and Reewarm™ PTX Drug Coated PTA Balloon Catheter, has further improved the company's competitiveness in the aortic and peripheral vascular intervention market, and continued to achieve rapid growth during the reporting period. Furthermore, in order to build sustainable competitiveness, the upgrading of the listed products in the aorta field has also been promoted in an orderly manner. At present, the type inspection report of the new generation of Castor™ is received, so is the animal experiment report of the new generation of Aegis™. In the field of peripheral vascular intervention, Fishhawk™ mechanical thrombectomy catheter and Vena Cava Filter have obtained the type inspection report and the animal experiment report respectively, and the TIPS stent-graft system has completed the animal experiment and has been submitted for type inspection. The above projects are expected to gradually enter the clinical trial stage in 2022 to further improve the layout of the company's aortic and peripheral product lines. In the meantime, Endovastec™ is also gradually advancing the reserve of other new technologies and R&D projects.
In 2021, the total R&D investment of Endovastec™ is RMB 123 million, accounting for 18.04% of the Group's revenue during the same period. During the reporting period, a total of 140 patent applications have been submitted and 60 new patents have been approved. As of December 31, 2021, Endovastec™ owns a total of 171 authorized domestic and overseas patents, including 112 domestic authorized patents (49 invention patents, 55 utility model patents, and 8 design patents) and 59 overseas authorized patents (all invention patents).
Global Layout Expands and Market Promotion Effectively Carries Out
At present, the medical device industry of aortic and peripheral vascular interventional is still in a stage of rapid development in China. With the support of national policies and the increase of R&D investment, the performance of self-developed products of domestic manufacturers represented by Endovastec™ have reached the international advanced level, they also have strong market competitiveness to substitute imported products step by step. The Group will continue to focus on the distribution of marketing channels in populous counties, increase the market penetration, and deepen the depth and breadth of the products in the market.
After years of development, Endovastec™’s products are widely used in major domestic terminal hospitals which have covered 30 provinces, autonomous regions and municipalities, and cooperative distributors are nearly 150, therefore, Endovastec™ has strong competitiveness in the number of distributors, terminal hospitals and the coverage of sales. In addition, Endovastec™ has deployed marketing channels in many tier two to tier four cities. With the upgrade of the living standards of national residents and medical consumption, the penetration rate of mini-invasive therapy in these regions will further increase in the future. As of 31 December 2021, the products of Endovastec™ have been used in about 1,000 hospitals, and the domestic market share of aortic products has ranked first among domestic brands for many years.
In terms of international business, the Company continue to further promote innovative products in the international market, and overseas sales revenue has increased by more than 100% compared with that of last year. As of December 31, 2021, Endovastec™’s product has been sold in 18 countries, and its business has expanded to more countries and regions in Europe, South America and Asia-Pacific; among them, Minos™ firstly implanted in the United Kingdom, Brazil, etc. and had entered 12 countries in total. Hercules™ Low Profile straight-tube stent-graft and delivery system achieved the first implantation in the UK, Switzerland and other countries, and has entered 10 countries in total; Castor has first implantation in UK, Brazil and Germany, and has entered 5 countries in total. Its clinical application article was first published in the internationally renowned medical journal Endovascular Today, and its innovation and clinical value has been widely recognized by experts at home and abroad.
Mr. Qing Zhu, president of Endovastec™, said, “In 2021, the continuing global COVID-19 pandemic, to a certain extent, brought uncertainties to our company's research and development, sales and other work. In the face of the new economic environment, Endovastec™, always driven by innovation, has been improving the portfolios of aortic and peripheral vascular interventional devices with innovative products on the market one after another and key products growing steadily. Meanwhile, we have been accelerating the implementation of the strategy of group-based and global development to continuously expand the domestic and international markets. We had gone through the difficulties in the past year and recorded a new high in sales revenue, delivering a satisfactory performance to our customers, employees and shareholders.”
Mr. Bo Peng, the chief marketing official of MicroPort® and chairman of the Group, said “With the mission of ‘providing trustworthy and universal access to state-of-the-art solutions to endovascular diseases’, Endovastec™ always pay attention to each user's personal feelings, and will continue to invest in product R&D and technology innovation. We will further reduce domestic medical costs in related fields by developing more products with technology and price competitiveness. In addition, we will constantly improve the Group's brand influence in the market to develop Endovastec™ into a globally leading high-tech medical group in the field of aortic and peripheral vascular interventions.
(All the revenue growth rates mentioned above are compared to the corresponding period of last year, and also adjusted to exclude the foreign exchange impact. Please refer to the 2021 Annual Results Announcement issued by the Company on March 29, 2022 for the data before excluding the foreign exchange impact.)