Shanghai, China, August 30, 2024 — MicroPort Scientific Corporation (00853.HK, “MicroPort®” or “the Group”) has released its interim results for 2024. For the six months ended June 30, 2024 (the “reporting period”), the Group achieved revenue of US$558.7 million, representing an increase of 17.0% excluding the foreign exchange impact as compared to the six months ended 30 June 2023, and significantly narrowed its losses by 63.1% year-on-year.
Consolidating Core Position and Maintaining Strong Growth in Going Abroad Business
During the reporting period, the Group made concerted efforts to promote steady development across various businesses. Due to the strengthened market position of leading products, incremental revenue contributions from new products, and rapid growth in international sales, the Group achieved a steady year-on-year business revenue growth of approximately 17.0% excluding the foreign exchange impact. Leveraging the Group’s going abroad platform’s extensive and in-depth global distribution layout, business segments effectively and constantly exported competitive products with excellent clinical performance, resulting in a steady increase in revenue of the Group’s going abroad business by 44.0% over the corresponding period of the last year excluding the foreign exchange impact.
Resource Focus and Improvement in Operational Efficiency, Performance Significantly Improved by 63.1% Year-on-Year
Adhered to its focus on improving profitability, the Group has consistently executed and implemented resource concentration and cost-optimization measures, resulting in a drop in the operating expense ratio* from 94% for the corresponding period of last year to 64% (in which the research and development expense ratio declined from 39% to 21%), which significantly improved operational efficiency. Furthermore, the Group implemented a strategy of focusing on its core business, and successfully completed disposals of several non-core loss-making businesses during the reporting period. In order to prioritize and focus on core projects, improve Research and Development (“R&D”) efficiency, the Group strategically discontinued several early-stage R&D projects to optimize resources. These efforts contributed to a 63.1% reduction in adjusted net loss as compared to the corresponding period of last year.
Years of R&D Innovation Driving Continued Performance Growth
MicroPort®’s global R&D projects continued to yield fruitful results, with the completion of market access for new products injecting innovative vitality into performance growth. During the reporting period and as at the date of this announcement, the Group and its associates had a total of 31 Class III medical devices initial registration certificates from the NMPA, and 4 innovative medical devices were admitted in the National Innovative Medical Device Special Review and Approval Procedure (the “Green Path”), reaching a total of 34 “Green Path” innovative medical devices, ranking first in the medical device industry for nine consecutive years. In terms of overseas business, during the reporting period and as at the date of this announcement, the Group and its associates obtained 102 initial registration certificates in 25 overseas markets (countries and regions). Among them, 11 products have obtained the CE Mark, and 4 products have obtained FDA registration license.
Looking Forward，MicroPort® will continue to enhance the health of its financial statements as its primary objective, actively implementing focused resource allocation and cost control measures, with an emphasis on its core businesses, while continuously enhancing operational efficiency. The Group will continue expanding its presence in China while accelerating growth in international markets. Additionally, MicroPort® will accelerate the R&D and registration process of innovative medical device products that are nearing the approval stage or have broad market prospects based on large unmet clinical needs, and continuously optimize the horizontal and vertical layout of its business. With a commitment to developing distinctive and sustainable competitive advantages, the Group strives to significantly reduce losses in the coming years and achieve break-even at the earliest opportunity.
* Operating expense ratio = (R&D costs + distribution costs + administrative expenses) / revenue