#China #Shenzhen #Medical Devices #LifeTech #RMB1.3 billion

LifeTech Scientific Corporation 2024 Annual Results

LifeTech Scientific Corporation (Stock Code: 1302.HK) announced its financial results for the year ending December 31, 2024, revealing a robust growth in revenue and a significant increase in international business. The company, based in Shenzhen, China, is renowned for its innovative and minimally invasive interventional medical devices aimed at treating cardio-cerebrovascular and peripheral vascular diseases.

Steady Revenue Growth

The Group reported total revenue of approximately RMB1,303.7 million, marking a year-on-year growth of about 2.9%. This steady performance is indicative of the company's resilience despite the challenging market conditions. A significant highlight of this fiscal year is the impressive growth of the Group's international sales, which reached approximately RMB346.6 million—a remarkable increase of around 26.0% compared to the previous year.

The primary contributors to this international growth were Asia (excluding mainland China) and Europe, achieving growth rates of approximately 33.6% and 18.6%, respectively. This strong performance underlines LifeTech's successful internationalization strategy, which has resulted in overseas markets accounting for around 26.6% of the total revenues.

Domestic Market Foundations

Despite the international successes, China's mainland remains LifeTech's largest market, with domestic sales reaching approximately RMB957.1 million, representing about 73.4% of total revenues. The company's key products, such as congenital heart disease (CHD) occluders and left atrial appendage (LAA) occluders, maintained their strong market position thanks to ongoing support and demand in the local market.

Profitability and Market Position

LifeTech also excelled in profitability during the reporting period, achieving a gross profit of approximately RMB981.4 million and a gross profit margin of around 75.3%. The net profit attributable to the owners of the company was approximately RMB222.4 million. This strong financial performance showcases LifeTech's operational efficiency and strategic positioning in the global market.

Structure Heart Diseases (SHD) Business

In the SHD sector, LifeTech primarily focuses on the development of products like CHD and LAA occluders. The revenues generated in this segment totaled about RMB527.6 million, showing a year-on-year growth of 6.4%. Notably, LifeTech's LAA occluder remains a market leader in China and continues to gain traction in international markets as well.

Peripheral Vascular Diseases (PVD) Business

The PVD segment contributed significantly to LifeTech's revenue, totaling approximately RMB751.1 million during the period, reflecting a year-on-year growth of 6.2%. The company’s product lineup in this domain, including vena cava filters and stent grafts, holds a dominant position in the domestic market. LifeTech’s commitment to providing comprehensive treatment solutions in the PVD sector further solidifies its competitive edge.

Innovation and Product Development

Innovation remains a core pillar of LifeTech's growth strategy. The company invested around RMB302.9 million in research and development, focusing on new medical devices. Successfully obtaining certifications for several innovative product lines, such as the Futhrough™ Endovascular Needle System and HeartTone™ Implantable Cardiac Pacemaker, underscores LifeTech's commitment to quality and innovation.

Future Prospects

Looking ahead, LifeTech aims to further enhance its global footprint by exploring new growth opportunities worldwide. The company's strategy focuses on consolidating its market position through technological innovation, expanding its product portfolio, and improving operational efficiency. With a clear vision for sustainable growth, LifeTech is poised to leverage its strengths in innovation and market understanding to bring advanced medical solutions to patients around the globe.

Conclusion

LifeTech Scientific Corporation's 2024 results highlight not only substantial growth in revenue and international business but also a steadfast commitment to innovation and quality. The company is securing its position as a leader in the medical device industry, demonstrating resilience in the face of market challenges while providing vital solutions for healthcare providers and patients alike.