Financial Performance - The company reported a revenue of approximately RMB 1,267.2 million for the year ended December 31, 2023, representing a 15.5% increase from RMB 1,097.3 million in 2022[7]. - Gross profit for the same period was approximately RMB 995.6 million, up 13.9% from RMB 873.9 million in the previous year[10]. - The net profit attributable to the company's owners decreased by 19.1% to RMB 263.2 million from RMB 325.3 million in 2022[7]. - Basic earnings per share fell to RMB 0.060 from RMB 0.077, a decline of 22.1%[7]. - Operating profit increased by approximately 2.0% to about RMB 383.3 million for the year ended December 31, 2023, from RMB 375.9 million in 2022[32]. - The company recorded a net profit attributable to owners of approximately RMB 263.2 million for the year ended December 31, 2023, down about 19.1% from RMB 325.3 million in 2022[38]. - The total comprehensive income for the year was RMB 510,066,000, down from RMB 516,664,000 in 2022[183]. - The company reported a net profit for 2023 decreased to RMB 107,490 thousand from RMB 318,739 thousand in 2022, indicating a decline of 66.3%[180]. Research and Development - The company experienced a significant increase in R&D expenses, impacting overall profitability[10]. - The company plans to continue increasing R&D investment and attracting talent to enhance its innovation capabilities[11]. - Research and development expenses increased by approximately 42.9% to about RMB 297.9 million for the year ended December 31, 2023, from RMB 208.5 million in 2022[31]. - The company has accelerated product development and innovation capabilities to maintain its leading position in the industry, with several products receiving regulatory certifications, including AcuMarkTM and EpioneTM systems[18]. - The company is actively expanding its product portfolio in the structural heart disease sector, with a diverse range of offerings including left atrial appendage occluders and third-generation congenital heart disease occluders[21]. - The company plans to increase R&D investment focusing on new materials and technologies to drive product innovation and category expansion[56]. Market and Sales - Domestic sales accounted for approximately 78.3% of total revenue in 2023, down from 81.6% in 2022, while overseas sales increased by 36.0%[16]. - The company's major overseas markets in 2023 were Asia (excluding mainland China) and Europe, contributing approximately 9.0% and 8.8% to total revenue, respectively[16]. - The company anticipates an upward trend in market demand for its products driven by aging population, urbanization, and increased health awareness[51]. - The global market for left atrial appendage occluders is expected to continue expanding due to a large population of atrial fibrillation patients[52]. - The company leads the domestic market share in the provision of advanced interventional medical devices for peripheral vascular diseases[53]. - The company is the first domestic manufacturer with a complete product range of implantable cardiac pacemakers meeting international standards, with optimistic market performance expected due to unmet demand in China[54]. Assets and Liabilities - Total assets increased to RMB 4,696.4 million in 2023 from RMB 3,690.1 million in 2022[8]. - The company’s total liabilities rose to RMB 1,372.4 million in 2023, compared to RMB 769.0 million in the previous year[8]. - As of December 31, 2023, the total current assets amounted to approximately RMB 2,231.1 million, an increase of about 59.6% from RMB 1,396.7 million as of December 31, 2022[40]. - The total current liabilities as of December 31, 2023, were approximately RMB 770.1 million, up from RMB 584.7 million as of December 31, 2022[40]. - The company's equity attributable to equity holders was approximately RMB 3,370.2 million as of December 31, 2023, compared to RMB 2,900.4 million as of December 31, 2022[43]. - The company has no bank borrowings as of December 31, 2023, resulting in a debt-to-equity ratio of zero[43]. Corporate Governance - The company has adopted corporate governance principles and confirmed compliance with the corporate governance code throughout the year ending December 31, 2023, except for a deviation regarding the dual role of the chairman and CEO[67]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors as of the report date[69]. - The company is committed to reviewing and enhancing its corporate governance practices to meet the rising expectations of shareholders and investors[67]. - The company has implemented a code of conduct for securities trading that meets or exceeds the standards set forth in the listing rules[68]. - The board has established clear guidelines for management reporting to the board, ensuring accountability and transparency in decision-making[74]. - The company has established a whistleblowing policy to encourage reporting of illegal or unethical behavior[95]. Shareholder Engagement - The annual general meeting provided shareholders the opportunity to engage directly with the board regarding company performance and operations[101]. - The company has maintained a high level of transparency in its communications with shareholders and investors[100]. - The board has reviewed the implementation and effectiveness of the shareholder communication policy for the year ending December 31, 2023[100]. Employee and Management - Total employee costs, including director remuneration, amounted to approximately RMB 3,798 million for the year ended December 31, 2023, up from RMB 3,365 million in 2022[55]. - The company has expanded its board with experienced professionals, enhancing its strategic planning and business management capabilities[59][60][62]. - The management team has a strong educational background, with degrees from prestigious institutions such as Tsinghua University and Fourth Military Medical University[59][61][62]. - The company is committed to creating environmentally friendly and sustainable business operations, investing in energy-saving technologies to reduce carbon emissions[57]. Audit and Compliance - The consolidated financial statements were audited by Deloitte, and no change in auditors has occurred in the past three years[171]. - The audit committee is responsible for recommending the appointment, reappointment, and removal of external auditors to the board[93]. - The company emphasizes effective risk management and internal control systems to safeguard assets and ensure compliance with laws and regulations[83]. - The board reviews the effectiveness of the risk management and internal control systems at least annually, ensuring they are adequate and effective[94]. Future Outlook - The company recognizes the opportunities in the medical device industry will outweigh the challenges in the future, driven by factors such as aging population and rising health awareness[13]. - The company plans to continue evaluating and exploring acquisition, partnership, alliance, and licensing opportunities globally in 2024 to enhance competitiveness in existing and newly selected markets[13].

Core Insights - The company, Xianjian Technology, reported a strong revenue growth of approximately 15.5% year-on-year, reaching around RMB 1,267.2 million for the year ending December 31, 2023, with overseas sales increasing significantly by about 36.0% [1][2] - The gross profit was approximately RMB 995.6 million, reflecting a stable gross margin of about 78.6%, while the net profit attributable to shareholders was around RMB 423.3 million, with a net profit margin of approximately 33.4% [1][2] - The company maintained a robust cash position with cash and cash equivalents amounting to approximately RMB 979.3 million, a year-on-year increase of about 17.5% [1] International Business Growth - The international business segment showed strong performance, with sales contributions from overseas markets rising to about 21.7% of total revenue, particularly driven by a 52.9% growth in the European market [1][2] - The company expanded its sales channels to nearly 120 countries and regions globally, enhancing its market penetration [1][2] Domestic Market Performance - The domestic market remains the foundation of the company's operations, contributing approximately 78.3% of total revenue with a year-on-year sales growth of about 10.8% [2] - The company’s structural heart disease products, including left atrial appendage occluders and congenital heart disease occluders, recorded a revenue increase of approximately 25.6% [2] Core Business Segments - The structural heart disease segment generated approximately RMB 495.7 million in sales, with left atrial appendage occluders growing by about 32.0% year-on-year [2] - The peripheral vascular business reported revenue of approximately RMB 707.1 million, a year-on-year increase of about 9.7%, with a notable growth in stent sales [3][4] - The electrophysiology segment achieved sales of approximately RMB 64.4 million, reflecting a growth of about 10.3% [4] Innovation and R&D - The company invested approximately RMB 297.9 million in R&D, marking a year-on-year increase of about 42.9%, to enhance its technological innovation capabilities [5] - Several innovative products received regulatory approvals, including AcuMark™ and Aegisy™ systems, which are expected to drive future growth [6] Strategic Developments - The subsidiary, Yuanxin Technology, completed a strategic financing round, significantly increasing its valuation by 173%, which will support the development of its iron-based bioabsorbable materials [7][8] - The company has submitted multiple products for regulatory approval in various markets, including CE certification in Europe and NMPA approval in China [6][8] Intellectual Property and Recognition - The company has submitted a total of 2,147 patent applications, with 942 patents granted, showcasing its commitment to innovation and intellectual property protection [8] - The company received several industry awards for its innovative products, highlighting its recognition in the medical device sector [8]

Financial Performance - The company's revenue for the year ended December 31, 2023, was approximately RMB 1,267.2 million, an increase of about 15.5% compared to RMB 1,097.3 million for the same period in 2022, primarily driven by increased sales of congenital heart disease occluders and coated stents [2]. - Gross profit for the year ended December 31, 2023, was approximately RMB 995.6 million, up about 13.9% from RMB 873.9 million in 2022 [2]. - The net profit attributable to the company's owners, excluding certain non-recurring items, was approximately RMB 423.3 million, a decrease of about 2.3% from RMB 433.4 million in 2022, mainly due to increased R&D expenses and decreased net foreign exchange gains [2]. - The company's net profit for the year, excluding certain non-recurring items, was approximately RMB 400.2 million, down about 7.0% from RMB 430.2 million in 2022 [2]. - The basic and diluted earnings per share for the year were RMB 6.0 cents and RMB 5.9 cents, respectively, compared to RMB 7.7 cents and RMB 7.4 cents in 2022 [4]. - The total profit for the year was RMB 994,971,000, with segment profits of RMB 434,294,000 from structural heart disease, RMB 533,990,000 from peripheral vascular, and RMB 26,687,000 from electrophysiology [13]. - The company reported a total income of RMB 99,305,000 in 2023, up from RMB 60,094,000 in 2022, marking an increase of 65.0% [21]. - The pre-tax profit rose to RMB 379,811,000 in 2023, compared to RMB 336,525,000 in 2022, reflecting an increase of 12.8% [22]. - The company reported a net profit of approximately RMB 400.2 million for the year ended December 31, 2023, down about 7.0% from RMB 430.2 million in 2022 [57]. Assets and Liabilities - Non-current assets as of December 31, 2023, totaled RMB 2,465.2 million, an increase from RMB 2,293.4 million in 2022 [5]. - Current assets increased to RMB 2,231.1 million as of December 31, 2023, compared to RMB 1,396.7 million in 2022 [5]. - The company's total liabilities increased to RMB 602.3 million in 2023 from RMB 184.3 million in 2022, primarily due to the fair value changes of financial liabilities [6]. - The net assets of the company as of December 31, 2023, were RMB 3,323.97 million, up from RMB 2,921.06 million in 2022 [6]. - Total assets increased to RMB 4,696,364 thousand in 2023 from RMB 3,690,103 thousand in 2022, with significant growth in structural heart disease assets from RMB 330,622 thousand to RMB 625,742 thousand [16]. - Total liabilities rose to RMB 1,372,394 thousand in 2023 compared to RMB 769,046 thousand in 2022, with the peripheral vascular business liabilities increasing from RMB 111,871 thousand to RMB 177,122 thousand [17]. - The total current liabilities as of December 31, 2023, were approximately RMB 770.1 million, compared to RMB 584.7 million as of December 31, 2022 [59]. Research and Development - Research and development expenses totaled RMB 297,921,000, reflecting the company's commitment to innovation and product development [13]. - Research and development expenses increased by approximately 42.9% to about RMB 297.9 million for the year ended December 31, 2023, compared to RMB 208.5 million in 2022 [51]. - The company submitted 351 patent applications and registered 204 patents during the year, with a total of 2,147 effective patent applications submitted and 942 registered effective patents as of December 31, 2023 [39]. - Several innovative medical devices, including AcuMarkTM and EpioneTM systems, received regulatory certifications, enhancing the company's competitive edge in the market [38]. - The company is actively pursuing clinical trials for new products, including the CeraTM ceramic membrane occluder and IBS AngelTM iron-based absorbable stent, which are expected to enhance its product portfolio [38]. Market and Sales - The structural heart disease segment generated revenue of RMB 495,666,000, while the peripheral vascular segment contributed RMB 707,108,000, and the electrophysiology segment accounted for RMB 64,401,000 [13]. - The company operates in multiple regions, with mainland China accounting for RMB 992,126,000 of total sales, followed by Europe at RMB 111,091,000 and other regions contributing smaller amounts [9]. - Domestic sales accounted for approximately 78.3% of total revenue for the year ended December 31, 2023, down from 81.6% in 2022 [36]. - Sales in Asia (excluding mainland China) and Europe represented approximately 9.0% and 8.8% of total revenue, respectively, for the year ended December 31, 2023, compared to 7.8% and 6.6% in 2022 [36]. - Revenue from external customers in mainland China was RMB 992,126 thousand in 2023, up from RMB 895,053 thousand in 2022, representing a growth of approximately 10.9% [20]. Expenses and Costs - The company incurred a tax expense of RMB 68,091,000 in 2023, compared to RMB 59,307,000 in 2022, which is an increase of 14.8% [24]. - The company's employee costs, including directors' remuneration, increased to RMB 247,453,000 in 2023 from RMB 219,966,000 in 2022, an increase of 12.5% [22]. - Sales and distribution expenses increased by approximately 8.2% to about RMB 265.3 million for the year ended December 31, 2023, compared to RMB 245.2 million in 2022 [49]. - Administrative expenses rose by approximately 45.7% to about RMB 149.3 million for the year ended December 31, 2023, from RMB 102.5 million in 2022 [50]. Future Outlook - The company anticipates continued growth in the coming year, driven by market expansion and new product development initiatives [9]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth [18]. - The company aims to maintain its leading position in the industry by accelerating product development and enhancing innovation capabilities [38]. - The company plans to increase R&D investment focusing on new materials and technologies to drive product innovation and category expansion [74]. - The company aims to enhance its global market share and international influence through optimized production and sales models [74]. Corporate Governance - The board of directors proposed not to declare any final dividend for the year ended December 31, 2023, consistent with the previous year [2]. - The company did not declare or propose any dividends for the years ended December 31, 2023, and 2022 [26]. - The audit committee has reviewed the financial results for the year ending December 31, 2023, confirming compliance with applicable accounting standards [87]. - The annual general meeting is scheduled for May 27, 2024 [85]. - The board of directors includes executive directors Mr. Xie Yuehui and Mr. Liu Jianxiong, and independent non-executive directors Mr. Jiang Feng, Mr. Liang Xianzhi, Mr. Wang Wansong, and Mr. Zhou Luming [90].

Financial Performance - For the six months ended June 30, 2023, the company reported revenue of approximately RMB 639.5 million, an increase of 15.2% compared to RMB 555.2 million for the same period in 2022[11]. - Gross profit for the same period was RMB 504.8 million, reflecting a growth of 14.3% from RMB 441.6 million year-on-year[9]. - The net profit attributable to the company's owners was approximately RMB 220.2 million, up 2.5% from RMB 214.8 million in the previous year[11]. - Operating profit for the six months ended June 30, 2023, was approximately RMB 255.2 million, an increase of about 7.3% from RMB 237.9 million in the same period of 2022[20]. - The company reported a profit for the period of RMB 214,784 thousand, compared to a profit of RMB 220,164 thousand for the same period in 2022, showing a decline of about 2.2%[101]. - The company’s total comprehensive income for the period was RMB 211,081 thousand, slightly lower than RMB 214,596 thousand in the previous year, reflecting a decrease of approximately 1.9%[101]. Revenue Breakdown - Revenue from the structural heart disease business was approximately RMB 243.9 million, up about 25.1% from RMB 194.9 million in the same period of 2022[15]. - Revenue from the peripheral vascular business was approximately RMB 362.7 million, an increase of about 14.6% from RMB 316.6 million in the same period of 2022[16]. - The company’s sales in mainland China accounted for approximately 80.4% of total revenue, down from 83.2% in the previous year[11]. - The company’s overseas sales grew by 34.4%, indicating successful market expansion efforts[11]. Assets and Liabilities - The company's total assets increased by 10.6% to RMB 4,081.9 million, compared to RMB 3,690.1 million as of December 31, 2022[9]. - The total current assets as of June 30, 2023, were approximately RMB 1,934.5 million, an increase from approximately RMB 1,396.7 million as of December 31, 2022[26]. - The current liabilities totaled approximately RMB 634.8 million as of June 30, 2023, compared to approximately RMB 584.7 million as of December 31, 2022[26]. - The total liabilities as of June 30, 2023, were RMB 825,471 thousand, compared to RMB 769,046 thousand as of December 31, 2022, reflecting an increase of about 7.3%[110]. Research and Development - R&D expenses increased by approximately 10.3% to about RMB 110.6 million, with total R&D costs rising to approximately RMB 161.9 million, an increase of about 9.5%[19]. - The company aims to enhance its innovation and R&D capabilities to maintain industry leadership and expand global market share[43]. Investments and Financing - The company invested RMB 10.0 million in a private equity fund managed by Fuxin Capital, with a fair value of approximately RMB 10.1 million as of June 30, 2023, accounting for about 0.2% of total assets[21]. - The company agreed to invest USD 20.0 million (approximately RMB 144.4 million) in Ally Bridge Group Global Life Science Capital Partners V, with a fair value of approximately RMB 104.8 million as of June 30, 2023, representing about 2.6% of total assets[21]. - The company reported a net cash inflow from operating activities of RMB 223,128 thousand, compared to RMB 244,159 thousand for the same period in 2022, reflecting a decrease of approximately 8.6%[100]. Employee and Management - As of June 30, 2023, the group employed 1,391 full-time employees, an increase from 1,299 as of December 31, 2022[37]. - Total employee costs for the six months ended June 30, 2023, amounted to approximately RMB 182.8 million, compared to RMB 151.7 million for the same period in 2022[37]. - The total remuneration for key management personnel amounted to RMB 9,434,000 in 2023, up from RMB 7,660,000 in 2022, reflecting a growth of approximately 23.1%[167]. Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange and confirmed compliance for the six months ending June 30, 2023, with a noted deviation regarding the roles of Chairman and CEO being held by the same individual[44]. - The board consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors, ensuring at least one independent director has appropriate professional qualifications[45]. - The company has confirmed that all board members complied with the securities trading standard code during the six months ending June 30, 2023[46]. Stock Options and Share Awards - The new stock option plan, effective from September 17, 2021, allows for the issuance of up to 462,929,240 shares, which is capped at 10% of the company's issued share capital as of that date[57]. - As of June 30, 2023, a total of 128,750,000 stock options were granted but not exercised under the stock option plan[66]. - The company has adopted the 2019 Share Award Scheme and the 2022 Share Award Scheme, which do not require shareholder approval[72]. - The maximum number of shares that can be awarded under the 2022 Share Award Plan is capped at 463,003,040 shares, which is 10% of the total issued shares as of March 3, 2022[82]. Government Grants and Subsidies - The company received government grants of RMB 11,720 thousand related to the acquisition of property and equipment, slightly lower than RMB 12,650 thousand received in the previous year[100]. - The company confirmed revenue from government grants of approximately RMB 8,971,000 for the six months ended June 30, 2023, up from RMB 7,050,000 in the same period of 2022[134]. Market Outlook - The company anticipates an upward trend in market demand for its products due to aging population and increased health awareness[35].

Financial Performance - For the six months ended June 30, 2023, the revenue was approximately RMB 639.5 million, an increase of about 15.2% compared to RMB 555.2 million for the same period in 2022[2]. - The gross profit for the same period was approximately RMB 504.8 million, representing a growth of about 14.3% from RMB 441.6 million in the previous year[2]. - The net profit attributable to the owners of the company was approximately RMB 220.2 million, an increase of about 2.5% from RMB 214.8 million in the same period of 2022[2]. - The operating profit for the six months ended June 30, 2023, was RMB 255.2 million, compared to RMB 237.9 million for the same period in 2022[4]. - The company reported a pre-tax profit of RMB 256,421 thousand for the six months ended June 30, 2023, compared to RMB 240,620 thousand for the same period in 2022, marking an increase of approximately 6.6%[12][13]. - The company reported other income and gains of RMB 54,980 thousand for the first half of 2023, compared to RMB 49,823 thousand for the same period in 2022, indicating a growth of about 4.3%[12][13]. - The company's pre-tax profit for the six months ended June 30, 2023, was RMB 182,781,000, compared to RMB 151,724,000 in 2022, reflecting a growth of 20.5%[17]. - Basic and diluted earnings per share for the six months ended June 30, 2023, were RMB 220,164,000, compared to RMB 214,784,000 in 2022, showing a slight increase of 2.1%[21]. Assets and Liabilities - The total assets less current liabilities amounted to RMB 3,447.1 million as of June 30, 2023, compared to RMB 3,105.4 million at the end of 2022[6]. - Non-current assets increased to RMB 2,147.4 million as of June 30, 2023, from RMB 2,293.4 million at the end of 2022[5]. - The company reported cash and cash equivalents of RMB 775.1 million as of June 30, 2023, down from RMB 833.8 million at the end of 2022[5]. - The net assets of the company increased to RMB 3,256.4 million as of June 30, 2023, compared to RMB 2,921.1 million at the end of 2022[6]. - Total assets as of June 30, 2023, reached RMB 4,081,898 thousand, an increase from RMB 3,690,103 thousand as of December 31, 2022, indicating a growth of approximately 10.6%[14]. - The total liabilities as of June 30, 2023, were RMB 825,471 thousand, compared to RMB 769,046 thousand as of December 31, 2022, reflecting an increase of about 7.3%[15]. - As of June 30, 2023, the total current assets of the group were approximately RMB 1,934.5 million, an increase of about 38.4% from RMB 1,396.7 million as of December 31, 2022[56]. - The total current liabilities as of June 30, 2023, were approximately RMB 634.8 million, up from RMB 584.7 million as of December 31, 2022, representing an increase of about 8.9%[56]. Research and Development - Research and development expenses for the first half of 2023 amounted to RMB 110,607 thousand, slightly increasing from RMB 100,261 thousand in the same period of 2022, reflecting a focus on innovation and product development[12][13]. - The company submitted 82 patent applications and successfully obtained 91 patents during the six months ended June 30, 2023, bringing the total number of effective patent applications to 1,904, with 842 patents approved[39]. - The company continues to enhance its innovation capabilities and accelerate product development to maintain its industry-leading position[38]. - R&D expenses increased by approximately 10.3% to about RMB 110.6 million for the six months ended June 30, 2023, compared to approximately RMB 100.3 million for the same period in 2022[47]. Market and Sales - Revenue from the domestic market accounted for approximately 80.4% of total revenue, while overseas markets contributed approximately 19.6%, with Asia (excluding mainland China) and Europe accounting for about 8.5% and 7.5% respectively[36]. - Revenue from the structural heart disease business was approximately RMB 243.9 million, representing an increase of about 25.1% compared to RMB 194.9 million in the same period of 2022[41]. - Revenue from the peripheral vascular business was approximately RMB 362.7 million, an increase of about 14.6% compared to RMB 316.6 million in the same period of 2022[41]. - The company has established a stable global sales network with distributors in multiple countries across Asia, Africa, North America, South America, and Europe[35]. - The company focuses on advanced minimally invasive medical devices for treating cardiovascular and peripheral vascular diseases[35]. Employee and Administrative Costs - As of June 30, 2023, the company employed 1,391 full-time employees, an increase from 1,299 as of December 31, 2022[68]. - Total employee costs for the six months ended June 30, 2023, amounted to approximately RMB 182.8 million, compared to RMB 151.7 million for the same period in 2022, reflecting a year-on-year increase of 20.5%[68]. - Administrative expenses rose by approximately 29.5% to about RMB 59.7 million, mainly due to increased employee costs and travel expenses[46]. - Sales and distribution expenses increased by approximately 20.9% to about RMB 119.2 million, primarily due to increased marketing and travel expenses[45]. Dividends and Shareholder Returns - The company did not recommend any interim dividend for the six months ended June 30, 2023, consistent with the previous year[2]. - The board did not recommend any interim dividend for the six months ended June 30, 2023, consistent with the same period in 2022[74]. Compliance and Governance - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules and confirmed compliance with all significant provisions as of June 30, 2023[75]. - The Audit Committee, consisting of three independent non-executive directors, has reviewed the interim results for the six months ending June 30, 2023, ensuring compliance with relevant accounting standards and legal requirements[77]. - The company has confirmed that all board members adhered to the securities trading standard code during the six months ending June 30, 2023[76].

Financial Performance - For the fiscal year ending December 31, 2022, LifeTech achieved revenue of approximately RMB 1,097.3 million, an increase of 18.6% compared to RMB 925.3 million in 2021[28]. - Gross profit for the same period was approximately RMB 873.9 million, reflecting a growth of 16.9% from RMB 747.5 million in the previous year[31]. - The net profit attributable to the company's owners was approximately RMB 325.3 million, representing an increase of 11.2% from RMB 292.5 million in 2021[28]. - The company reported a basic earnings per share of RMB 7.7 cents, up 13.2% from RMB 6.8 cents in the prior year[28]. - LifeTech's total assets reached RMB 3,690.1 million in 2022, up from RMB 3,183.7 million in 2021, showcasing robust financial health[29]. - The company reported a significant increase in non-recurring losses related to financial assets, amounting to RMB 41.3 million in 2022, compared to RMB 11.8 million in 2021[31]. - The company's interest income for the year ended December 31, 2022, was approximately RMB 12.0 million, up from RMB 7.7 million in 2021[52]. - The company's cash and cash equivalents decreased by approximately 25.5% to RMB 833.8 million as of December 31, 2022, compared to RMB 1,119.3 million in 2021[56]. - The company's current ratio as of December 31, 2022, was approximately 2.39, down from 3.81 in 2021[55]. - The company's income tax expense increased from approximately RMB 49.6 million in 2021 to approximately RMB 59.3 million in 2022, primarily due to an increase in taxable income[52]. Market and Product Development - The company has received regulatory approval for several new products, including the Fitaya™ venous filter system and FemCross™ 35 peripheral balloon dilation catheter, enhancing its product portfolio[32]. - LifeTech's IBS™ absorbable drug-eluting coronary stent system has completed patient enrollment for a pivotal clinical study in China, indicating progress in clinical development[32]. - The company has successfully completed the first implantations of KONAR-MF™ and LAmbre™ left atrial appendage occluder systems in Japan and South Korea, marking its international expansion efforts[32]. - The domestic market accounted for approximately 81.6% of total revenue in 2022, down from 83.6% in 2021, while overseas markets in Asia (excluding mainland China) and Europe contributed approximately 7.8% and 6.6% respectively[37]. - The company’s domestic sales grew by approximately 15.6% and overseas sales by 33.7% in 2022, driven by effective marketing strategies and increased market penetration[37]. - The company aims to maintain global leadership in product quality and technological innovation while expanding its international market presence[34]. - The company has developed a fourth-generation congenital heart disease occluder to meet diverse patient needs, indicating a focus on innovative product development[65]. - The market demand for left atrial appendage occluders is expected to continue expanding due to a large global population of atrial fibrillation patients[65]. - The company leads the domestic market share in the provision of systemic interventional medical devices for peripheral vascular diseases, with anticipated growth driven by aging population and increased disease detection rates[66]. - The company is the first domestic manufacturer to offer a complete product range of implantable cardiac pacemakers that meet international standards, with optimistic market prospects due to unmet treatment needs in China[66]. Research and Development - Research and development expenses rose by 42.9% to approximately RMB 208.5 million, with capitalized development expenditures of about RMB 109.0 million[47]. - The company submitted 306 patent applications and registered 168 patents as of December 31, 2022, with a total of 1,828 effective patent applications submitted[41]. - The IBS Angel™ iron-based absorbable stent system received "compassionate use" approval from the FDA and is undergoing pre-market clinical trials in China[40]. - The IBS™ absorbable drug-eluting coronary stent system completed all enrollments in a Phase II clinical study in China and is set to begin a Phase III clinical study[40]. - The LAmbre™ left atrial appendage occluder system received registration approval in South Korea, successfully completing over ten implantations[40]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and financial transparency through its experienced board of directors[76]. - The board of directors consists of two executive directors, one non-executive director, and three independent non-executive directors as of the report date[82]. - The company has established an audit committee, remuneration committee, and nomination committee, primarily composed of independent non-executive directors[93]. - The company has implemented necessary arrangements to comply with all code provisions of the corporate governance code[80]. - The independent non-executive directors have confirmed their independence in accordance with the listing rules[83]. - The company has adopted corporate governance principles and has complied with the corporate governance code throughout the year ending December 31, 2022[80]. - The company has established formal policies and procedures for risk management and internal control systems to protect shareholders' interests[111]. - The board has reviewed the effectiveness of the risk management and internal control systems at least once a year, ensuring they are adequate and effective[111]. - The company has a conflict management policy to guide directors on avoiding conflicts of interest[108]. - The audit committee is responsible for recommending the appointment, reappointment, and removal of external auditors to the board[110]. Employee and Management - As of December 31, 2022, the company had 1,299 full-time employees, an increase from 943 in the previous year, with total employee costs amounting to approximately RMB 336.5 million, up from RMB 225.8 million in 2021[67]. - The company has implemented a new share incentive plan to motivate employees, following the termination of the previous stock option plan due to reaching its limit[67]. - The company emphasizes the importance of providing a safe and comfortable working environment, along with equal employment opportunities and training for employees[68]. - The company has established a strategic cooperation agreement with Jian Shi Technology for business development and project investment in both domestic and overseas markets, aiming to enhance overall profitability[69]. - The company plans to continue focusing on technology, automation, and product quality improvements to increase innovation capabilities and expand global market share[69]. Shareholder Relations - The company encourages shareholders to attend annual general meetings to express their opinions and concerns directly to the board[116]. - The annual general meeting provides shareholders the opportunity to engage directly with the board regarding company performance and operations[119]. - The company maintains a high level of transparency in its investor relations, regularly communicating with institutional investors and analysts[116]. - The board has reviewed the implementation and effectiveness of the shareholder communication policy for the year ended December 31, 2022[117]. - Shareholders holding at least 10% of the paid-up capital can request a special general meeting, and if the board fails to convene it within 21 days, the requesters can call the meeting themselves[114]. Financial Management - The company has a strong emphasis on financial management and compliance with international accounting standards, ensuring accurate financial reporting[74]. - The independent auditor's report emphasizes the importance of identifying and assessing risks of material misstatement in the financial statements due to fraud or error[199]. - The company must ensure compliance with relevant ethical requirements related to independence in the audit process[200]. - The company is responsible for ensuring that the consolidated financial statements are free from material misstatement due to fraud or error, and must evaluate the group's ability to continue as a going concern[198]. - The auditor evaluates the appropriateness of accounting policies adopted by the board and the reasonableness of accounting estimates and related disclosures[200].

Financial Performance - The company's revenue for the year ended December 31, 2022, was approximately RMB 1,097.3 million, an increase of about 18.6% compared to RMB 925.3 million in the same period of 2021[2] - Gross profit for the year ended December 31, 2022, was approximately RMB 873.9 million, up about 16.9% from RMB 747.5 million in 2021[2] - The net profit attributable to the owners of the company for the year ended December 31, 2022, was approximately RMB 429.3 million, representing a growth of about 32.5% from RMB 324.0 million in 2021[2] - The total comprehensive income for the year was RMB 510.1 million, compared to RMB 285.4 million in the previous year[5] - Basic earnings per share for the year was RMB 7.7 cents, compared to RMB 6.8 cents in 2021[5] - The total segment profit for the year ended December 31, 2022, was RMB 874,015,000, compared to RMB 755,801,000 in the previous year, indicating an increase of about 15.6%[15] - The company reported a pre-tax profit of RMB 378,046,000 for the year ended December 31, 2022, compared to RMB 332,928,000 in the previous year, marking an increase of approximately 13.5%[15] - The company achieved a net profit attributable to shareholders of approximately RMB 429.3 million for the year ended December 31, 2022, representing a growth of about 32.5% compared to RMB 324.0 million in 2021[57] Sales and Revenue Breakdown - The company's overseas sales increased by approximately 33.7% compared to the same period in 2021[2] - Revenue from external customers in mainland China reached RMB 895,053 thousand in 2022, compared to RMB 774,035 thousand in 2021, reflecting a growth of 15.6%[23] - Revenue from the structural heart disease business was approximately RMB 394.6 million, representing a growth of about 19.2% from RMB 331.1 million in the previous year, with congenital heart disease occluders and left atrial appendage occluders seeing revenue increases of approximately 26.2% and 8.4%, respectively[43] - Revenue from the peripheral vascular business was approximately RMB 644.3 million, an increase of about 17.5% from RMB 548.5 million in the previous year, with sales of coated stents increasing by approximately 23.3%[44] - Domestic sales accounted for approximately 81.6% of total revenue for the year ended December 31, 2022, down from 83.6% in 2021[37] - The company's revenue for the year ended December 31, 2022, was approximately RMB 1,097.3 million, primarily driven by increased sales of coated stents and congenital heart disease occluders[42] Assets and Liabilities - Non-current assets as of December 31, 2022, totaled RMB 2,293.4 million, an increase from RMB 1,346.6 million in 2021[6] - The total assets less current liabilities amounted to RMB 3,105.4 million, compared to RMB 2,701.8 million in the previous year[6] - The company reported a total asset of RMB 3,690,103 thousand in 2022, up from RMB 3,183,715 thousand in 2021, indicating an increase of 15.9%[18] - The total liabilities of the company increased to RMB 769,046 thousand in 2022 from RMB 653,613 thousand in 2021, which is a rise of 17.7%[19] - The company's total current assets as of December 31, 2022, were approximately RMB 1,396.7 million, down from RMB 1,837.1 million in 2021, while total current liabilities increased to RMB 584.7 million from RMB 481.9 million[58] Research and Development - Research and development expenses for the year were RMB 208,481,000, reflecting the company's commitment to innovation and product development[15] - Research and development expenses rose by 42.9% to approximately RMB 208.5 million, with capitalized development expenditures of approximately RMB 109.0 million, leading to a total R&D cost increase of about 49.4% to RMB 317.5 million[50] - The company is developing a fourth-generation congenital heart disease occluder to meet diverse patient needs, indicating a focus on innovative technology[69] - The company’s R&D efforts led to the successful completion of clinical trials for the IBS™ absorbable drug-eluting coronary stent system, achieving a 100% success rate without serious adverse events[40] Corporate Governance and Compliance - The company is reviewing and enhancing its corporate governance practices to comply with the new corporate governance code effective from January 1, 2022[77] - The company's financial statements for the year ended December 31, 2022, have been agreed upon by the auditor, Deloitte[84] - The audited annual performance for the year ended December 31, 2022, has been reviewed by the audit committee, confirming compliance with applicable accounting standards and sufficient disclosure[87] Employee and Operational Insights - The group employs 1,299 full-time employees as of December 31, 2022, up from 943 in 2021, with total employee costs amounting to approximately RMB 336.5 million[72] - The company is committed to maintaining good relationships with employees, customers, and suppliers to achieve its long-term goals[82] Strategic Initiatives - The company is focused on identifying growth opportunities in the healthcare sector and seeks strategic partnerships to enhance its product offerings and expand its business scale[62] - The company has established a strategic cooperation agreement with Jian Shi Technology for potential business development and project investment in both domestic and overseas markets[74] - The company aims to enhance its innovation capabilities and optimize its production and sales model to increase global market share and international influence[75] Capital Expenditure and Investments - The group's capital expenditure for the year ended December 31, 2022, was approximately RMB 332.0 million, an increase from RMB 301.3 million in 2021[64] - The company holds a strategic investment in Ningbo Jianshi Technology Co., Ltd., with a fair value of RMB 335.4 million as of December 31, 2022, accounting for about 9.1% of total assets[54] Market Presence - The company’s distribution network spans multiple countries across Asia, Africa, North America, South America, and Europe, enhancing its global market presence[36] - The market demand for left atrial appendage occluders is expected to continue expanding due to a large global population of atrial fibrillation patients[69]

Financial Performance - The company reported revenue of RMB 555.2 million for the six months ended June 30, 2022, representing a 20.4% increase from RMB 461.1 million in the same period of 2021[31]. - Gross profit for the same period was RMB 441.6 million, up 18.0% from RMB 374.4 million year-on-year[31]. - Operating profit increased by 4.5% to RMB 237.9 million compared to RMB 227.6 million in the previous year[31]. - Net profit attributable to the owners of the company was RMB 214.8 million, a 5.1% increase from RMB 204.4 million in the same period last year[31]. - The company’s gross margin decreased by approximately 1.7 percentage points to about 79.5% for the six months ended June 30, 2022, compared to 81.2% for the same period in 2021[40]. - The net profit attributable to the owners of the company was approximately RMB 247.9 million for the six months ended June 30, 2022, representing an increase of about 34.4% from RMB 184.4 million for the same period in 2021[44]. - Basic earnings per share increased to RMB 5.0 cents, up from RMB 4.7 cents in the previous year, indicating improved profitability[106]. Sales and Market Performance - The company’s domestic sales accounted for approximately 83.2% of total revenue, slightly down from 84.0% in the previous year[33]. - Sales in Europe and Asia (excluding mainland China) represented about 6.1% and 7.2% of total revenue, respectively[33]. - The company’s domestic sales grew by approximately 19.3%, while overseas sales increased by 26.4% compared to the previous year[33]. - Revenue from the structural heart disease business was approximately RMB 194.9 million, representing an increase of about 22.5% from RMB 159.1 million in the same period of 2021[38]. - Revenue from the peripheral vascular business was approximately RMB 316.6 million, an increase of about 10.4% from RMB 286.8 million in the same period of 2021[38]. - Revenue from the electrophysiology business was approximately RMB 43.7 million, a significant increase of about 187.5% from RMB 15.2 million in the same period of 2021[39]. Research and Development - Research and development expenses increased by approximately 54.3% to about RMB 100.3 million for the six months ended June 30, 2022, compared to RMB 65.0 million for the same period in 2021[41]. - The company submitted 52 patent applications and had 86 patents approved during the six months ended June 30, 2022, with a total of 1,567 effective patent applications submitted[36]. - The company aims to improve its innovation and R&D capabilities to maintain industry leadership and enhance automation in production to improve product quality[61]. Assets and Liabilities - Total assets as of June 30, 2022, were RMB 3,281.4 million, a 3.1% increase from RMB 3,183.7 million at the end of 2021[31]. - Total equity increased to RMB 2,614.6 million, up 3.3% from RMB 2,530.1 million at the end of 2021[31]. - The group’s total liabilities as of June 30, 2022, included trade and other payables of approximately RMB 432.7 million[45]. - The group maintained a current ratio of approximately 3.81 as of June 30, 2022, consistent with the ratio as of December 31, 2021[45]. - The company’s cash and cash equivalents were approximately RMB 916.9 million as of June 30, 2022, a decrease of about 18.1% from approximately RMB 1,119.3 million as of December 31, 2021[46]. Share Options and Awards - The total number of options that may be issued under the share option plan is capped at 462,929,240 shares, not exceeding 10% of the issued share capital as of September 17, 2021[77]. - The share option plan allows for the issuance of options to eligible participants as a reward for their contributions to the company's development[75]. - As of June 30, 2022, a total of 33,789,600 stock options remain unexercised, held by 20 grantees[83]. - The total number of stock options granted and unexercised reflects the company's commitment to incentivizing employees and aligning their interests with shareholder value[86]. - The company has granted a total of 136,800,000 stock options as of June 30, 2022, which remain unexercised[86]. Corporate Governance - The company has a total of six board members, including two executive directors, one non-executive director, and three independent non-executive directors, ensuring a diverse governance structure[64]. - The audit committee, consisting of three independent non-executive directors, has reviewed the interim results for the six months ended June 30, 2022, confirming compliance with relevant accounting standards and regulations[66]. Strategic Initiatives - The company established LifeTech-Quantum in collaboration with ABG Innovation-Quantum Limited and Quantum Surgical to focus on the R&D and commercialization of innovative surgical robots in China, which received CE certification in September 2021 and FDA 510(k) approval in March 2022[60]. - The company plans to actively explore investment cooperation opportunities with companies in the global healthcare sector to expand its business scope and deepen its global layout[61]. - The company anticipates an upward trend in market demand for its products due to aging populations and increased health awareness[54]. Government Grants and Taxation - The company recognized government grants of RMB 42,390,000, up from RMB 32,080,000, indicating a growth of 32.5%[108]. - The company has maintained a 25% corporate income tax rate for its subsidiaries in China, with two subsidiaries qualifying for a reduced rate of 15% due to their high-tech enterprise status[5].

Financial Performance - The company's revenue for the year ended December 31, 2021, was approximately RMB 925.3 million, an increase of 44.1% compared to RMB 642.3 million in 2020[8]. - Gross profit for the same period was approximately RMB 747.5 million, reflecting a 45.7% increase from RMB 513.1 million in the previous year[12]. - Net profit attributable to the company's owners was approximately RMB 292.5 million, up 35.4% from RMB 216.1 million in 2020[12]. - The company achieved a basic earnings per share of RMB 6.8 cents, a 36.0% increase from RMB 5.0 cents in the prior year[8]. - The operating profit increased by approximately 24.3% to about RMB 328.7 million from RMB 264.5 million in the previous year[32]. - Revenue from the structural heart disease business was approximately RMB 331.1 million, representing a growth of about 60.4% from RMB 206.4 million in the previous year[23]. - Revenue from the peripheral vascular business was approximately RMB 548.5 million, an increase of about 33.4% from RMB 411.3 million in the previous year[24]. - The total comprehensive income for the year was RMB 285,423 thousand, compared to RMB 208,080 thousand in 2020, reflecting a growth of 37%[195]. Regulatory Approvals and Product Development - The company has received regulatory approval for several key products, including the G-iliac™ iliac artery bifurcation stent system and the LAxible™ left atrial appendage occluder[13]. - The IBS™ absorbable drug-eluting coronary stent system has received implied permission for confirmatory clinical trials in China, with a 100% success rate in initial human clinical trials[13]. - The company has 14 products recognized as innovative medical devices by the National Medical Products Administration[13]. - The company is focusing on developing a fourth-generation congenital heart disease occluder to meet diverse patient needs, indicating ongoing product innovation[52]. Market Performance and Sales - The sales in mainland China accounted for approximately 83.6% of total revenue for the year ended December 31, 2021, compared to 83.9% in 2020[18]. - The company's domestic sales grew by approximately 43.6% year-on-year, primarily due to the containment of the COVID-19 pandemic and increased market penetration of its products[18]. - The overseas sales increased by approximately 46.4% compared to the same period in 2020, driven by effective marketing strategies[18]. - Revenue from the European market accounted for approximately 7.4% of total revenue, down from 9.0% in 2020, indicating a slight decline in contribution from this region[48]. Financial Position and Assets - The total assets of the company as of December 31, 2021, were RMB 3,183.7 million, compared to RMB 2,954.5 million in 2020[9]. - The company's total current assets as of December 31, 2021, were approximately RMB 1,837.1 million, up from RMB 1,544.8 million in 2020[37]. - Cash and cash equivalents increased by approximately 15.2% to RMB 1,119.3 million as of December 31, 2021, from RMB 971.7 million in 2020[39]. - The company had no bank borrowings as of December 31, 2021, down from RMB 174.5 million in 2020, resulting in a debt-to-equity ratio of zero[40]. - The total equity attributable to owners was approximately RMB 2,503.6 million as of December 31, 2021, compared to RMB 2,340.1 million in 2020[41]. Research and Development - Research and development expenses decreased by 12.8% to approximately RMB 145.9 million, with capitalized development expenditures of approximately RMB 66.6 million[31]. - The company reported a capitalized development cost of RMB 288,762,000 as of December 31, 2021, related to products for structural heart disease and peripheral vascular disease[187]. Corporate Governance - The company has adopted corporate governance principles in compliance with the Hong Kong Stock Exchange's listing rules, ensuring adherence to the corporate governance code throughout the fiscal year ending December 31, 2021[71]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors as of the report date[73]. - The company has established internal guidelines requiring board approval for significant investments and changes in business strategy[74]. - The independent non-executive directors have confirmed their independence in accordance with listing rules[74]. Employee and Workforce Management - The company employs 943 full-time employees as of December 31, 2021, an increase from 791 in 2020, reflecting growth in workforce[55]. - Total employee costs, including director remuneration, were approximately RMB 225.8 million for the year ended December 31, 2021, down from RMB 314.6 million in 2020[55]. - The company emphasizes the importance of employee welfare, providing a safe working environment and equal employment opportunities[57]. Environmental and Social Responsibility - The company is committed to creating environmentally friendly and sustainable business operations, investing in energy-saving technologies to reduce carbon emissions[60]. - The company plans to release a separate report detailing its environmental and social performance data[60]. Shareholder Relations and Transparency - The annual general meeting serves as a primary channel for communication with shareholders, allowing direct interaction with the board[102]. - The company emphasizes maintaining high transparency to enhance investor relations and regularly communicates with institutional investors and analysts[101]. - The company’s website serves as a communication platform for public and shareholder updates on business developments and financial performance[101].

Financial Performance - For the six months ended June 30, 2021, the company reported revenue of approximately RMB 461.1 million, an increase of about 68.9% compared to RMB 272.9 million for the same period in 2020[22]. - Gross profit for the same period was RMB 374.4 million, reflecting a growth of 72.5% from RMB 217.1 million year-on-year[22]. - Operating profit increased by 90.1% to RMB 227.6 million, up from RMB 119.8 million in the previous year[22]. - Net profit attributable to the company's owners was approximately RMB 204.4 million, a rise of 106.6% compared to RMB 98.9 million in the prior year[22]. - The basic earnings per share rose to RMB 4.7 cents, representing an increase of 104.3% from RMB 2.3 cents in the same period last year[22]. - Profit before tax reached RMB 231,822 thousand, reflecting a 107.1% increase from RMB 111,492 thousand in the previous year[126]. - Net profit for the period was RMB 200,651 thousand, more than doubling from RMB 96,181 thousand in the same period last year[126]. Revenue Breakdown - Revenue from the structural heart disease business was approximately RMB 159.1 million, a 100.6% increase from RMB 79.3 million in the same period of 2020[36]. - Revenue from the peripheral vascular business was approximately RMB 286.8 million, a 50.0% increase from RMB 191.2 million in the same period of 2020[36]. - Total revenue for the six months ended June 30, 2021, was RMB 461,141,000, with structural heart disease business contributing RMB 159,083,000, peripheral vascular business contributing RMB 286,875,000, and electrophysiology business contributing RMB 15,183,000[141]. Market Presence - Domestic sales accounted for approximately 84.0% of total revenue, up from 81.3% in the previous year, indicating strong market presence in mainland China[27]. - Sales in mainland China increased by approximately 74.6%, attributed to the recovery of economic activities post-COVID-19[27]. - Revenue from the European market accounted for approximately 7.3% of total revenue, down from 10.9% in the same period of 2020[57]. Research and Development - Research and development expenses increased by approximately 31.0% to about RMB 65.0 million for the six months ended June 30, 2021, compared to RMB 49.6 million for the same period in 2020[41]. - The company incurred research and development expenses of RMB 65,021,000 for the six months ended June 30, 2021, as part of its commitment to innovation[141]. Corporate Governance - The group is committed to high standards of corporate governance and has adhered to all significant provisions of the corporate governance code during the six months ended June 30, 2021[77]. - The board consists of six members, including two executive directors and three independent non-executive directors, ensuring compliance with corporate governance standards[78]. - The audit committee, composed of three independent non-executive directors, reviewed the interim results for the six months ending June 30, 2021, confirming compliance with accounting standards and adequate disclosures[83]. Employee and Management - As of June 30, 2021, the group employed 874 full-time employees, an increase from 791 as of December 31, 2020, with total employee costs amounting to RMB 89.8 million, up from RMB 76.2 million in the same period last year[67]. - Total remuneration for key management personnel during the period was RMB 7,044,000, compared to RMB 9,713,000 for the same period in 2020[200]. - The company has established a union to protect employees' legal rights and promote sustainable and healthy development[67]. Investments and Assets - The fair value of the investment in ABG-Grail Limited was approximately RMB 263.0 million as of June 30, 2021, accounting for about 8.5% of the company's total assets[42]. - The company’s non-listed equity investments were valued at RMB 364,955,000 as of June 30, 2021, slightly up from RMB 358,298,000 as of December 31, 2020, marking an increase of about 1.8%[168]. - Total assets as of June 30, 2021, amounted to RMB 3,095,279 thousand, a slight increase from RMB 2,954,549 thousand as of December 31, 2020[147]. Share Option and Incentive Plans - The company adopted a share option scheme on October 22, 2011, revised on May 5, 2015, to align with the main board listing rules[96]. - The share option scheme aims to reward eligible participants for their contributions to the company's development[97]. - The company adopted a share incentive plan on December 28, 2018, which was subsequently revised on April 29, 2019, by unanimous board resolution[108]. Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2021, were approximately RMB 588.2 million, a decrease of about 39.5% from RMB 971.7 million as of December 31, 2020[49]. - Operating cash generated for the six months ended June 30, 2021, was RMB 239,446,000, compared to RMB 126,740,000 for the same period in 2020, representing an increase of 88.8%[132]. - Net cash from operating activities for the six months ended June 30, 2021, was RMB 199,341,000, up from RMB 106,117,000 in 2020, indicating an increase of 87.7%[132]. Future Plans and Strategies - The company plans to continue expanding its market presence and investing in new product development to enhance its competitive edge in the medical device sector[135]. - The group aims to expand its distribution network and develop new products to strengthen its leading position in the interventional medical device industry[74]. - The company is focusing on strategic partnerships within the healthcare industry to enhance its product line and expand its business scale[55].