Financial Performance - The company achieved a record revenue of $164.1 million for the fiscal year 2024, representing a growth of 6.6% year-over-year, with an 8.7% increase excluding foreign exchange fluctuations [9]. - Gross profit increased by 7.5% to approximately $114.5 million, with around 1.7 million products sold globally, of which 1.5 million were proprietary products, marking a 4.8% year-over-year increase [9]. - The company reported a decrease in profit attributable to shareholders by 11.9% to $39.7 million, with basic earnings per share at 4.81 cents, down from 5.45 cents in 2023 [10]. - Core operating profit, after excluding stock-based compensation and other adjustments, was $29.0 million, a decline of 15.8% compared to $34.4 million in 2023 [10]. - Revenue increased from $153.9 million in 2023 to $164.1 million in 2024, a growth of $10.2 million or 6.6% [39]. - The net profit attributable to the company's owners decreased by 11.9% to $39.7 million, with basic earnings per share of 4.81 cents, down 11.7% from 5.45 cents in 2023 [22][19]. Revenue Breakdown - Revenue from the Asia-Pacific region reached $52.2 million, a significant increase of 43.7% year-over-year, driven by new acquisitions and strong internal growth [23]. - Revenue from Europe, the Middle East, and Africa grew by 7.9% to $39.2 million, primarily due to increased sales of proprietary balloon products [24]. - Revenue from Japan decreased by 9.4% to $34.4 million, attributed to the depreciation of the yen against the dollar and price adjustments [25]. - Revenue from China showed a reduced decline of 5.4%, with reported income of approximately $20.7 million, following improved marketing strategies [26]. - Revenue from the U.S. market reached $17.5 million, with a decline of 17.7%, narrowing from a 40.9% drop in the first half of the year [27]. Operational Developments - The company is integrating three acquired companies, which will incur additional operational costs but is essential for long-term development [10]. - The company is enhancing automation at its largest R&D production facility in Hangzhou, China, to reduce labor costs and improve operational efficiency [11]. - The group is constructing its largest R&D and manufacturing facility in Hangzhou, China, expected to increase annual production capacity by 2.4 million units upon completion in 2027 [34]. - The group has established a strong quality management system and a solid global presence, selling products in over 70 countries and regions [11]. Shareholder Returns - The company plans to distribute a final cash dividend of HKD 0.10 per share, maintaining the same level as in 2023, to reward shareholders for their continued support [10]. - The group plans to distribute a final cash dividend of HKD 0.10 per share to reward shareholders for their continued support [37]. - The company proposed a final dividend of HKD 0.10 per share for the year ending December 31, 2024, consistent with the previous year [180]. Research and Development - Research and development expenses increased by 18.5% to $17.0 million, primarily due to higher service fees paid to contract research organizations [49]. - The company is focusing on the development and commercialization of new products, with $1.5 million allocated for next-generation neurointerventional products [127]. - The company plans to expand its R&D team in Shenzhen, with $0.7 million allocated for this purpose by the end of 2025 [127]. Market Strategy - A partnership was formed with a well-known Chinese manufacturer to distribute innovative products in the Asia-Pacific market, with plans to expand cooperation to other regions [11]. - The group anticipates revenue growth driven by the Asia-Pacific region and Europe, the Middle East, and Africa, with a focus on launching new products like Teleport Glide and Scoreflex QUAD in the Japanese market [36]. - The company is expanding its market presence in Asia, targeting a 30% increase in market share by the end of the fiscal year [83]. Financial Position - As of December 31, 2024, the group holds over 240 authorized patents and published patent applications globally, with more than 40 and 90 in the United States and China, respectively [30]. - The group has a cash and bank balance of $248.6 million as of December 31, 2024, positioning it well for potential acquisitions and industry consolidation opportunities [36]. - The total current assets amounted to approximately $361.5 million, compared to $348.0 million as of December 31, 2023 [55]. - The total current liabilities as of December 31, 2024, were approximately $30.7 million, down from $35.6 million as of December 31, 2023 [55]. - The current ratio as of December 31, 2024, was approximately 11.8 times, an increase from 9.8 times as of December 31, 2023 [57]. Corporate Governance - The company has adopted corporate governance principles to enhance shareholder value and accountability [199]. - The audit committee has reviewed the consolidated financial statements for the year ended December 31, 2024, and found them compliant with applicable accounting standards [195]. - The auditor, PwC, has audited the financial statements and is eligible for reappointment at the upcoming annual general meeting [196]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests [200]. Employee and Management - As of December 31, 2024, the company employed 1,331 employees, with employee benefit expenses totaling approximately $59.1 million, up from $53.3 million in 2023, reflecting a year-over-year increase of about 14.0% [113]. - The company has implemented stock option plans and incentive programs to enhance employee performance and retention [113]. - The board of directors includes both executive and independent non-executive members, with specific terms of service ranging from 1 to 3 years [96]. Risks and Compliance - The group has faced various financial risks, including credit risk, liquidity and interest rate risk, and foreign exchange risk, with details provided in the financial risk management section of the annual report [108]. - Legal risks include potential litigation that may involve significant damages, although the company believes it has strong defenses against such claims [110]. - The company is subject to economic sanctions imposed by the U.S., EU, UN, and Australia, which could negatively impact sales to sanctioned countries [111]. - The company has complied with relevant laws and regulations during the reporting period [190].

Financial Performance - The company's revenue for the year ended December 31, 2024, was $164,097,000, representing a 6.6% increase compared to $153,865,000 in 2023[4] - Gross profit increased to $114,467,000, up 7.5% from $106,498,000 in the previous year[4] - Profit attributable to the company's owners decreased by 11.9% to $39,717,000 from $45,073,000 in 2023[4] - Basic earnings per share fell to 4.81 cents, down 11.7% from 5.45 cents in the prior year[4] - The company's net profit margin decreased to 24.2%, down 5.1 percentage points from 29.3% in 2023[4] - Total revenue for the group reached $331,383 thousand in 2024, up from $305,418 thousand in 2023, indicating an overall growth of about 8.5%[24] - The company reported a revenue of $164.1 million for the second half of 2024, representing a year-on-year growth of 6.6%[56] - The company's profit attributable to owners decreased by 11.9% from $45.1 million for the year ended December 31, 2023, to $39.7 million for the year ending December 31, 2024, primarily due to increased operating expenses and reduced government grants for R&D activities[98] Expenses and Costs - Research and development expenses increased to $17,045,000, compared to $14,379,000 in the previous year[5] - The company’s total expenses for the year amounted to $129,372,000 in 2024, compared to $116,586,000 in 2023, indicating an increase of approximately 10.9%[31] - The company’s employee benefits expenses rose to $59,069,000 in 2024 from $53,298,000 in 2023, an increase of approximately 10.5%[31] - General and administrative expenses increased by 33.7% from $18.9 million for the year ended December 31, 2023, to $25.3 million for the year ending December 31, 2024, primarily due to increased employee count and overall compensation costs[91] - Sales and distribution expenses rose by 4.1% to $37.4 million in 2024, attributed to increased employee benefits and marketing costs following an acquisition[90] Assets and Liabilities - Total assets as of December 31, 2024, amounted to $431,010,000, an increase from $410,144,000 in 2023[8] - The company reported a total equity of $394,377,000, compared to $369,418,000 in 2023[10] - Trade receivables increased to $42.7 million in 2024 from $38.6 million in 2023, with a net trade receivables amount of $41.7 million[44] - The company’s trade payables rose to $6.84 million in 2024, compared to $4.82 million in 2023[50] - Total current assets as of December 31, 2024, were approximately $361.5 million, compared to approximately $348.0 million as of December 31, 2023[100] Revenue by Region - Revenue from external customers in the Asia-Pacific region was $52,241 thousand for 2024, compared to $36,357 thousand in 2023, reflecting a significant increase of approximately 43.6%[24] - The group’s revenue from the European, Middle Eastern, and African regions was $39,234 thousand in 2024, compared to $36,362 thousand in 2023, showing an increase of about 7.7%[24] - Revenue from the U.S. market reached $17.5 million, with a significant narrowing of the decline from 40.9% in the first half to 17.7% for the full year, aided by discussions with distributors[64] - Revenue from Japan decreased by 9.4% to $34.4 million, primarily due to the depreciation of the yen against the dollar and periodic reimbursement price reductions[60] - Revenue from mainland China showed a reduced decline of 5.4%, with reported income of approximately $20.7 million, thanks to proactive marketing strategies and the implementation of volume-based procurement[61] New Initiatives and Future Outlook - The company is constructing its largest R&D and manufacturing facility in Hangzhou, expected to increase annual production capacity by 2.4 million units upon completion in 2027[74] - The company plans to launch new products, including Teleport Glide and Scoreflex QUAD, targeting the Japanese market[76] - The company expects revenue growth to be driven by the Asia-Pacific and Europe, Middle East, and Africa regions, with the US market also showing signs of recovery[76] - The company is actively seeking suitable downstream businesses to enhance its overseas sales network[78] Governance and Compliance - The company is committed to maintaining high standards of corporate governance and has complied with all applicable code provisions during the reporting period[118] - The audit committee has reviewed the financial reporting process and internal controls, recommending the board to approve the audited consolidated financial statements for the year ending December 31, 2024[124] - The company is committed to compliance with the corporate governance code as per the listing rules[135] Shareholder Information - The company did not declare any dividends for the year ending December 31, 2024, maintaining the same dividend of approximately $10.615 million for the previous year[53] - The board has proposed a final dividend of HKD 0.10 per share for the year ending December 31, 2024, which is the same as the previous year[115] - The annual general meeting is scheduled for May 27, 2025, with related documents to be published in April 2025[130]

業 图 版 OrbusNeich 順 OrbusNeich Medical Group Holdings Limited 業聚醫療集團控股有限公司 (於開曼群島註冊成立的有限公司 ) 股份代號 : 6929 中期報告 2024 目錄 公司資料2 財務摘要4 管理層討論及分析5 其他資料 15 中期財務資料的審閱報告 24 中期簡明綜合損益表 25 中期簡明綜合全面收益表 26 中期簡明綜合資產負債表 27 中期簡明綜合權益變動表 29 中期簡明綜合現金流量表 31 中期簡明綜合財務資料附註 32 釋義 56 公司資料 | --- | --- | |--------------------------------------|----------------------------------------| | 董事會 | 公司秘書 | | 執行董事 | 陳泳成先生 | | 錢永勛先生 | | | 劉桂禎女士 | 註冊辦事處 | | 陳泳成先生 | Cricket Square | | 非執行董事 | Hutchins Drive | | 周靜忠先生 | PO Box 2681 | | 梁鼎新先生 | Gran ...

Financial Performance - Revenue for the six months ended June 30, 2024, was $78,910 thousand, a decrease of 3.1% compared to $81,410 thousand for the same period in 2023[2] - Gross profit for the same period was $55,776 thousand, down 4.3% from $58,270 thousand year-over-year[2] - Profit before tax decreased by 24.1% to $21,285 thousand from $28,029 thousand in the prior year[2] - Net profit attributable to shareholders was $18,828 thousand, a decline of 25.2% compared to $25,183 thousand in the previous year[2] - Basic earnings per share were 2.28 cents, down 25.0% from 3.04 cents in the same period last year[2] - The gross margin for the period was 70.7%, a decrease of 0.9 percentage points from 71.6%[2] - The net profit margin fell to 23.9%, down 7.0 percentage points from 30.9% in the prior year[2] - The company's total expenses for the six months ended June 30, 2024, amounted to $61,945,000, an increase of 5.4% from $58,850,000 for the same period in 2023[17] - Employee benefits expenses rose to $29,043,000, up 10% from $26,392,000 in the previous year[17] - The company reported a current tax expense of $2,103,000 for the six months ended June 30, 2024, down from $2,763,000 in the previous year[18] - The effective corporate tax rate for the company in Hong Kong remained stable at 16.5% for both 2024 and 2023[19] Revenue Breakdown - Revenue from external customers in the Asia-Pacific region was $23,955 thousand, compared to $18,283 thousand for the same period in 2023, representing a growth of 31.5%[14] - The total revenue for the six months ended June 30, 2024, was $154,175 thousand, compared to $159,974 thousand for the same period in 2023, indicating a decline of 3.6%[14] - Revenue from the Asia-Pacific region increased by 31.0% year-over-year to $24.0 million, driven by strong sales of the Scoreflex TRIO balloon[32] - Revenue from Europe, the Middle East, and Africa slightly increased by 1.3% to $19.2 million, primarily due to increased sales of proprietary balloon products[33] - Revenue from Japan decreased by 3.6% year-over-year to $18.9 million, impacted by unfavorable exchange rates[34] - Revenue from China decreased by 23.3% to approximately $10.2 million, reflecting a 20.4% year-over-year decline in RMB terms[35] - Revenue from the U.S. market decreased by 40.9% to $6.7 million, primarily due to a significant drop in sales of peripheral balloons and Scoreflex NC[36] Assets and Liabilities - Total assets as of June 30, 2024, were $415,435 thousand, compared to $410,144 thousand as of December 31, 2023[5] - Total liabilities increased to $41,667 thousand from $40,726 thousand at the end of 2023[6] - Trade receivables net amount as of June 30, 2024, was $35,663,000, down from $37,966,000 at the end of 2023[26] - Trade payables increased to $6,182,000 as of June 30, 2024, compared to $4,815,000 at the end of 2023, reflecting a rise of 28.4%[28] - The total current assets amounted to approximately $347.7 million as of June 30, 2024, compared to $348.0 million as of December 31, 2023, while total current liabilities were approximately $35.9 million[62] - The group's current ratio was approximately 9.7 times as of June 30, 2024, slightly down from 9.8 times as of December 31, 2023[62] - The net current asset value as of June 30, 2024, was $311.8 million, a decrease of 0.2% from $312.3 million as of December 31, 2023[63] Research and Development - Research and development expenses increased to $7,398 thousand from $6,866 thousand, reflecting a focus on innovation[3] - Research and development expenses increased by 7.7% from $6.9 million to $7.4 million, attributed to higher clinical trial costs[56] Corporate Governance - The company has maintained high standards of corporate governance to protect shareholder interests and enhance corporate value[70] - The audit committee reviewed the interim financial information for the six months ending June 30, 2024, and confirmed compliance with applicable accounting standards and regulations[72] - The company has adopted a policy for securities trading by directors, managers, and employees, ensuring compliance with the standard code[71] - The board consists of three executive directors, three non-executive directors, and three independent non-executive directors, ensuring strong independence[70] - The company is committed to reviewing and enhancing its corporate governance practices continuously[70] Future Outlook and Strategy - The company is optimistic about restoring growth momentum despite facing challenges in various markets, with a focus on integrating eucatech AG into its operations[46] - The company anticipates a recovery in sales of Scoreflex NC and JADE in the U.S. market in the second half of the year, although annual sales may still decline[45] - The company plans to submit registration applications for new products, including Corepass modular catheters and JADE Plus, to regulatory authorities in 2024[40] - A new R&D and production facility is being constructed in Hangzhou, China, expected to commence operations in 2027, adding an annual capacity of 2.4 million units[42] - The company has approximately $246.7 million in cash and bank balances as of June 30, 2024, indicating a strong financial position to pursue growth opportunities[46] Acquisitions and Investments - The company acquired eucatech AG in November 2023 and is actively registering four products (eucaLimus, Support C, Resistant, and VITUS) in multiple countries, with eucaLimus approved for registration in Malaysia in H1 2024[40] - Capital expenditures during the reporting period totaled approximately $9.6 million, primarily for the purchase of property, plant, equipment, intangible assets, and right-of-use assets[65] Market Presence - The company continues to focus on the manufacturing, trading, sales, and marketing of medical devices for treating coronary and peripheral vascular diseases[12] - The company is focused on expanding its market presence in the Asia-Pacific region[74] - The company successfully won the highest bid for Scoreflex balloon catheters in the "3+N" alliance centralized procurement in the Beijing-Tianjin-Hebei region, with implementation starting in May 2024[45]

洲 图 服 OrbusNeich 原 OrbusNeich Medical Group Holdings Limited 業聚醫療集團控股有限公司 (於開曼群島註冊成立的有限公司 ) 股份代號 : 6929 年 報 2023 目錄 公司資料2 主席報告4 財務摘要7 五年財務摘要8 管理層討論及分析9 董事及高級管理層 18 董事會報告 23 企業管治報告 43 獨立核數師報告 58 綜合損益表 62 綜合全面收益表 63 綜合資產負債表 64 綜合權益變動表 66 綜合現金流量表 68 綜合財務報表附註 69 釋義 149 公司資料 | --- | --- | |-----------------------------------------------|----------------------------------------| | 董事會 | 公司秘書 | | 執行董事 | 陳泳成先生 | | 錢永勛先生 | | | 劉桂禎女士 | 註冊辦事處 | | 陳泳成先生 | | | 非執行董事 | Cricket Square | | 周靜忠先生 （於 2023 年 9 月 7 日獲重新任命） | H ...

Financial Performance - For the year ended December 31, 2023, total revenue reached $153.865 million, representing a 12.5% increase compared to $136.824 million in 2022[2]. - Gross profit for the same period was $106.498 million, up 15.2% from $92.458 million in 2022, resulting in a gross margin of 69.2%[2][5]. - The net profit attributable to the company's owners surged to $45.073 million, a remarkable increase of 143.8% from $18.491 million in the previous year[2][6]. - Adjusted net profit (non-HKFRS measure) was $46.153 million, reflecting a 73.1% increase from $26.666 million in 2022[4]. - Basic earnings per share rose to 5.45 cents, up 71.9% from 3.17 cents in 2022, while diluted earnings per share increased to 5.41 cents, a 112.2% rise from 2.55 cents[2][5]. - The company reported a significant increase in operating profit to $39.939 million, compared to $21.072 million in the previous year[5]. - The adjusted net profit margin (non-HKFRS measure) improved to 30.0%, up from 19.5% in 2022, indicating enhanced profitability[3]. - The company recorded a net profit attributable to shareholders of $45,073,000 in 2023, up from $18,491,000 in 2022, which is a 143.5% increase[24]. - The company’s net profit attributable to shareholders surged by 143.8% from $18.5 million in 2022 to $45.1 million in 2023, largely due to increased gross profit and higher interest income[59]. Revenue Breakdown - Revenue from external customers by region includes $38,005 thousand from Japan, $36,362 thousand from Europe, Middle East and Africa, $36,357 thousand from Asia-Pacific, $21,874 thousand from China, and $21,267 thousand from the United States[16]. - Revenue from the U.S. market reached $21.3 million, a substantial increase of 27.9%, primarily due to increased sales of peripheral balloons and scoring balloons[39]. - Revenue from Japan increased by 17.2% to $38.0 million, despite currency depreciation affecting reported figures[35]. - Revenue from Europe, the Middle East, and Africa grew by 12.6% to $36.4 million, driven by the adoption of new generation products[36]. - Revenue from the Asia-Pacific region increased by 14.0% to $36.4 million, supported by sales growth in several countries including Singapore and India[37]. - Revenue from China remained flat, with reported income of approximately $21.9 million, a decrease of 7.3% due to anti-corruption measures affecting PCI procedures[38]. Assets and Liabilities - Total assets as of December 31, 2023, amounted to $410.144 million, an increase from $351.060 million in 2022[7]. - Total liabilities increased to $40,726 thousand in 2023, up from $28,494 thousand in 2022, representing an increase of 43%[8]. - Total equity rose to $369,418 thousand in 2023, compared to $322,566 thousand in 2022, marking a growth of 14.5%[8]. - Current liabilities totaled $35,624 thousand in 2023, significantly higher than $23,812 thousand in 2022, reflecting a 49.6% increase[8]. - Non-current liabilities amounted to $5,102 thousand in 2023, up from $4,682 thousand in 2022, indicating an 8.9% increase[8]. - The accumulated losses decreased to $(78,707) thousand in 2023 from $(123,819) thousand in 2022, showing an improvement of 36.4%[8]. Research and Development - Research and development expenses remained stable at $14.379 million, slightly up from $14.113 million in 2022[5]. - The company has allocated HKD 62.7 million (17.1%) for the ongoing development, clinical trials, and product registration of drug-eluting balloon products[73]. - A total of HKD 15.7 million (4.3%) is designated for the registration and commercialization of next-generation COMBO dual therapy stent products in China, Japan, and Europe[73]. - The company has earmarked HKD 12.4 million (3.4%) for the development of new coronary and peripheral balloon and catheter products, with an expected completion date in 2027[73]. - The company plans to expand its R&D team in Shenzhen with an allocation of HKD 6.7 million (1.8%) to increase production capacity by 2027[75]. Strategic Initiatives - The company plans to propose a dividend of 10 HK cents per share, totaling approximately $10.6 million, to be approved at the 2023 annual general meeting[31]. - The company expanded its sales network to over 70 countries, with direct sales and distributors contributing approximately $80.0 million and $73.9 million to total revenue, accounting for 52.0% and 48.0% respectively[40]. - The company acquired 100% of SJ Medicare Co. Ltd. in South Korea and 84% of PT Revass Utama Medika in Indonesia to enhance market presence and capture growth potential[40]. - The company is launching the Scoreflex TRIO balloon in major direct sales markets in the Asia-Pacific and Europe, with FDA registration applications for Sapphire Ultra and Sapphire NC Ultra expected to be approved in Q1 2024[44]. - The company anticipates that recent acquisitions will significantly boost revenue growth in the Asia-Pacific region, particularly in Indonesia, which has a growing demand for medical products and services[44]. Corporate Governance and Compliance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[80]. - The audit committee has reviewed the consolidated financial statements for the year ending December 31, 2023, and recommends their approval to the board[82]. - The company confirms it has maintained the required public float as per listing rules[85]. - The company has no significant contingent liabilities as of December 31, 2023[68]. Future Outlook - The company plans to invest approximately RMB 430 million to build its largest R&D and production base in Fuyang, Hangzhou, with a total construction area of about 60,000 square meters, expected to be operational by 2027[42]. - The new R&D and production base is expected to be operational by 2027, with an annual production capacity increase of 2.4 million units[79]. - The company believes that the trend towards "intervention without implantation" will increase the use of drug-eluting balloons, enhancing its treatment capabilities in PCI and PTA procedures[44]. - Despite temporary impacts from anti-corruption campaigns in China, the company expects steady growth in PCI procedures driven by an aging population and rising income levels[45].

Financial Performance - Revenue for the six months ended June 30, 2023, was $81,410 thousand, representing an increase of 18.2% compared to $68,851 thousand in the same period of 2022[5]. - Gross profit increased by 22.1% to $58,270 thousand, up from $47,714 thousand year-on-year[5]. - Profit before tax surged by 189.3% to $28,029 thousand, compared to $9,689 thousand in the previous year[5]. - Net profit attributable to owners of the company reached $25,183 thousand, a significant increase of 213.3% from $8,037 thousand[5]. - Basic earnings per share rose to 3.04 cents, reflecting an increase of 118.7% from 1.39 cents in the prior year[5]. - Adjusted profit for the period (non-HKFRS measure) was $25,371 thousand, up 105.6% from $12,340 thousand[7]. - The gross margin improved to 71.6%, up from 69.3% in the previous year, indicating enhanced profitability[5]. - The net profit margin increased to 30.9%, compared to 11.7% in the same period last year, showcasing improved efficiency[5]. - Adjusted profit for the period increased by 105.6% to approximately $25.4 million, with core operating profit rising 52.1% to $20.4 million, resulting in a core operating profit margin of 25.1%[9]. - The total comprehensive income for the period was $23,891 thousand for the six months ended June 30, 2023, compared to $4,199 thousand for the same period in 2022, indicating a substantial increase of approximately 468%[78]. Revenue Growth - The company's revenue for the first half of 2023 was $81.4 million, representing an 18.2% year-over-year increase, with PCI balloon sales growing by 16.4% to $60.4 million and PTA balloon sales increasing by 38.5% to $7.7 million[9]. - The company achieved a significant revenue growth of 61.6% in the US market, reaching $11.3 million, with sales of scoring balloons doubling compared to the previous year[14]. - Revenue in Japan grew by 14.4% to $19.6 million, driven by strong sales of the new Scoreflex TRIO balloon series, although this growth was partially offset by the depreciation of the yen against the dollar[10]. - The Asia-Pacific region reported a revenue increase of 23.4% to $18.3 million, attributed to higher sales in direct sales countries like Singapore and Malaysia, as well as a significant rise in coronary stent sales[12]. - Revenue in the Europe, Middle East, and Africa region increased by 14.2% to $18.9 million, driven by the adoption of new generation products like Sapphire 3 and Sapphire NC 24[11]. - Revenue for the six months ended June 30, 2023, increased by 18.2% to $81.4 million from $68.9 million in the same period of 2022, driven by increased sales in various product lines[20]. Market Expansion and Product Development - The company is focusing on expanding its market presence and developing new products and technologies to drive future growth[6]. - The company plans to enhance its product portfolio in the Chinese market by promoting non-volume procurement products, focusing on microcatheters and peripheral products[19]. - The upcoming coronary products, Sapphire Ultra and Sapphire Ultra NC, are expected to receive FDA approval by the end of 2023, utilizing new material technology to reduce costs while maintaining performance[19]. - The company aims to deepen collaboration with Abbott, its U.S. distributor, to expand hospital coverage in the U.S. market following Abbott's acquisition of CSI[19]. - The company is actively seeking acquisition targets for innovative and high-quality vascular intervention products that can synergize with its extensive sales network[19]. - The company plans to accelerate the construction of the new R&D and production facility in Fuyang, Hangzhou, aiming to commence work by the end of this year after obtaining necessary permits[19]. Financial Position and Liquidity - Cash and bank balances as of June 30, 2023, were approximately $239.0 million, with $209.9 million in time deposits and high-interest accounts[19]. - Current assets totaled approximately $334.6 million, while current liabilities were about $22.4 million, resulting in a current ratio of approximately 15.0 times[37]. - Cash and bank balances increased to $239.0 million as of June 30, 2023, up from $229.1 million at the end of 2022, reflecting a net cash inflow from operating activities of $12.4 million[37]. - The group recorded a net foreign exchange loss of $0.7 million for the six months ended June 30, 2023, compared to a net loss of $1.2 million in the same period of 2022[38]. - The group has no assets pledged as collateral as of June 30, 2023[40]. - The board will continue to adopt a prudent financial policy to manage financial resources and maintain sufficient liquidity for future opportunities[40]. Research and Development - The company has over 210 authorized patents and published patent applications globally, with significant progress in R&D, including CE certification for the Scoreflex TRIO balloon catheter and ongoing clinical trials in China[16]. - The company received government grants totaling $1,266,000 in the first half of 2023, significantly higher than $320,000 in the same period of 2022[106]. - 17.1% of the net proceeds (HKD 62.7 million) is allocated for the ongoing R&D and commercialization of drug-eluting balloon products[53]. - The company is investing in R&D for new technologies, allocating 12% of its revenue towards innovation[148]. Shareholder Information - The board did not recommend an interim dividend for the six months ended June 30, 2023, but will consider a final dividend to share results with shareholders[62]. - The company has a total of 82,776,993 share options available for grant under the post-IPO share option scheme, representing 10% of the total issued shares as of June 30, 2023[56]. - The company granted a total of 6,172,000 share options to employees at an exercise price of HKD 9 per share on July 10, 2023[56]. - The company has adopted a share incentive plan, with a total of 82,776,993 shares available for grant under this plan as of the report date[57]. Operational Expenses - Sales and distribution expenses rose by 17.2% to $19.3 million, attributed to increased sales commissions and marketing activities post-COVID-19[28]. - R&D expenses increased by 2.2% to $6.9 million, mainly due to higher overall salaries and product registration costs[30]. - Total expenses for the six months ended June 30, 2023, were $58,850,000, compared to $55,070,000 in the same period of 2022, reflecting an increase of approximately 5.0%[108].

Revenue Growth - Revenue increased by 18.2% to $81.41 million in the first half of 2023 compared to $68.85 million in the same period of 2022[2] - Revenue from external customers increased to $81.41 million in the first half of 2023, up from $68.85 million in the same period in 2022, representing an 18.2% growth[16] - Revenue for the first half of 2023 increased by 18.2% year-over-year to $81.4 million, driven by strong sales growth in PCI and PTA balloons[32] - Total revenue increased by $12.5 million (18.2%) from $68.9 million in H1 2022 to $81.4 million in H1 2023, driven by growth in coronary and peripheral balloon products[47] Gross Profit and Margin - Gross profit rose by 22.1% to $58.27 million, with gross margin improving to 71.6% from 69.3%[2] - Gross profit increased by 22.1% to $58.3 million, with gross margin improving from 69.3% to 71.6% due to higher sales of scoring balloons in Japan and the US[51] Net Profit and Margin - Net profit attributable to owners surged by 213.3% to $25.18 million, with net margin expanding to 30.9% from 11.7%[2] - Adjusted net profit (non-HKFRS measure) grew by 105.6% to $25.37 million, with adjusted net profit margin increasing to 31.2% from 17.9%[2] - Profit attributable to owners of the company increased to $25.18 million in H1 2023, more than triple the $8.04 million in H1 2022[25] - Net profit attributable to shareholders surged by 213.3% to $25.2 million in H1 2023, with a net profit margin of 30.9%, up 19.2 percentage points year-over-year[32] - Net profit attributable to shareholders increased by 213.3% to $25.2 million, driven by higher gross profit, increased bank interest income, and absence of listing expenses[60] Earnings Per Share - Basic earnings per share increased by 118.7% to 3.04 US cents, while diluted EPS rose by 152.5% to 3.03 US cents[2] - Basic earnings per share grew to 3.04 cents in H1 2023, up from 1.39 cents in H1 2022[25] Operating Profit - Operating profit more than doubled to $24.11 million from $10.92 million in the prior year period[6] - Core operating profit grew by 52.1% to $20.4 million, with a core operating profit margin of 25.1%, up 5.6 percentage points year-over-year[33] Finance Income and Costs - Finance income net of costs improved significantly to $4.19 million from a loss of $1.16 million in 2022[6] - The company recorded a net financing income of $4.2 million, compared to a net financing cost of $1.2 million in H1 2022, mainly due to higher interest income from fixed deposits[57] Comprehensive Income - Total comprehensive income attributable to owners increased to $23.89 million from $4.20 million in the first half of 2022[7] Foreign Exchange - The company reported a foreign exchange loss of $1.25 million, compared to a loss of $4.08 million in the same period last year[7] - Net foreign exchange losses decreased to $0.69 million in H1 2023 from $1.20 million in H1 2022[19] - The company recorded a net foreign exchange loss of $0.7 million for the six months ended June 30, 2023, down from $1.2 million in the same period of 2022[64] Assets and Liabilities - Total assets increased to $373,197 thousand as of June 30, 2023, compared to $351,060 thousand as of December 31, 2022[8] - Non-current assets grew to $38,576 thousand from $36,785 thousand over the same period[8] - Current assets rose to $334,621 thousand from $314,275 thousand[8] - Inventory increased to $33,292 thousand from $29,400 thousand[8] - Trade receivables grew to $36,424 thousand from $32,322 thousand[8] - Cash and bank balances increased to $239,031 thousand from $229,146 thousand[8] - Total liabilities decreased to $26,552 thousand from $28,494 thousand[9] - Current liabilities reduced to $22,355 thousand from $23,812 thousand[9] - Non-current liabilities decreased to $4,197 thousand from $4,682 thousand[9] - Total current assets reached $334.6 million as of June 30, 2023, compared to $314.3 million as of December 31, 2022, while total current liabilities decreased to $22.4 million from $23.8 million[63] - Net current assets increased by 7.5% to $312.3 million as of June 30, 2023, compared to $290.5 million as of December 31, 2022[64] R&D Expenses - R&D expenses remained stable at $6.87 million, representing 8.4% of revenue[6] - R&D expenses increased by 2.2% to $6.9 million, primarily due to higher employee benefits and product registration fees[56] Sales and Distribution Expenses - Sales and distribution expenses increased by 17.2% to $19.3 million due to higher sales commissions and increased marketing activities[54] Employee Benefits - Employee benefit expenses rose to $26.39 million in H1 2023, up 8.5% from $24.33 million in H1 2022[20] - Employee benefits expenses, including director remuneration, amounted to $26.4 million for the six months ended June 30, 2023, up from $24.3 million in the same period of 2022[66] Regional Revenue - Revenue from the Asia-Pacific region (excluding Japan and China) grew to $18.92 million in H1 2023, up 14.2% from $16.57 million in H1 2022[16] - Revenue from China increased to $18.28 million in H1 2023, a 23.4% rise compared to $14.82 million in H1 2022[16] - Japan revenue grew by 14.4% to $19.6 million in H1 2023, driven by strong sales of the Scoreflex TRIO scoring balloon series[34] - Europe, Middle East, and Africa revenue increased by 14.2% to $18.9 million, supported by higher adoption of new-generation products like Sapphire 3 and Sapphire NC 24[35] - Asia-Pacific revenue rose by 23.4% to $18.3 million, driven by strong sales in Singapore, Malaysia, and increased coronary stent sales in Indonesia and Vietnam[36] - China revenue reached RMB 91.8 million, up 8.2% year-over-year, but remained flat at $13.3 million due to RMB depreciation against the USD[37] - US market revenue increased by 61.6% YoY to $11.3 million, with sales of scoring balloons doubling compared to the previous year[39] - Revenue from the US market increased by $4.3 million (61.6%), primarily due to higher sales of Scoreflex NC and Jade OTW products[48] - Revenue from the Asia-Pacific region increased by $3.5 million (23.4%), driven by higher sales of coronary and peripheral balloon products in markets like Singapore and Malaysia[48] - Revenue from Japan increased by $2.5 million (14.4%), mainly due to higher sales of Scoreflex TRIO products[48] Product Sales - PCI balloon sales grew by 16.4% to $60.4 million, while PTA balloon sales surged by 38.5% to $7.7 million in H1 2023[32] - Total sales volume increased by 20.8% to approximately 725,000 units in H1 2023[32] Government Grants - Government grants increased significantly to $1.27 million in H1 2023, compared to $0.32 million in H1 2022[18] Tax Rate - The effective tax rate decreased from 17.1% to 10.2% due to the utilization of prior-year tax losses and increased tax-exempt bank interest income[59] Cash and Bank Balances - Cash and bank balances increased to $239.0 million as of June 30, 2023, up from $229.1 million as of December 31, 2022, driven by net operating cash inflows of $12.4 million during the reporting period[62] Current Ratio - The current ratio improved to 15.0x as of June 30, 2023, up from 13.2x as of December 31, 2022[63] Capital Expenditures - Capital expenditures totaled $4.3 million during the reporting period, primarily for property, plant, equipment, intangible assets, and right-of-use assets[65] Commodity-Linked Fixed-Rate Notes - The company holds commodity-linked fixed-rate notes with a fair value of $19.5 million, representing 5.2% of total assets as of June 30, 2023[65] Employee Count - The company employed 954 full-time employees as of June 30, 2023, with 693 based in China, 108 in Japan, and 66 in European countries[66] Net Proceeds Allocation - Net proceeds from the global offering amounted to approximately HK$366.0 million after deducting underwriting commissions, discretionary incentives, and expenses[67] - Net proceeds of HKD 366 million were allocated for various purposes, with 17.1% (HKD 62.7 million) for drug-eluting balloon product development, 4.3% (HKD 15.7 million) for COMBO dual-therapy stent product registration, and 40.8% (HKD 149.3 million) for facility construction and renovation[68] - As of June 30, 2023, HKD 14.4 million of the net proceeds had been utilized, with HKD 351.6 million remaining unused, expected to be utilized by the end of 2027 for various projects[68] - The company plans to acquire a new land plot of approximately 20,000 square meters, with HKD 16.1 million allocated, of which HKD 11.5 million has been utilized as of June 30, 2023[68] - HKD 39.5 million (10.8% of net proceeds) is allocated for potential strategic acquisitions, partnerships, and business development to expand product portfolios and market penetration[68] Dividends - No interim dividend was recommended for the six months ended June 30, 2023, but the board will consider a final dividend to share results with shareholders[69] - The company will consider distributing a final dividend to shareholders, reflecting its strong financial position and positive operating cash flow[46] Share Options - The company granted 6,172,000 share options to employees on July 10, 2023, with an exercise price of HKD 9 and a vesting period from 2024 to 2027[72] Corporate Governance - The Audit Committee reviewed the interim financial statements and confirmed compliance with applicable accounting standards and regulations[73] - The company maintains strong corporate governance, with a board consisting of four executive directors, two non-executive directors, and three independent non-executive directors[70] Subsidiaries and Joint Ventures - OrbusNeich P+F Company Limited is a joint venture in which the company indirectly holds a 50% equity stake[77] - ONM Group Ltd is a wholly-owned subsidiary of the company, registered in the Cayman Islands[78] Reporting Period - The reporting period refers to the six-month period from January 1, 2023 to June 30, 2023[79] Share Incentive Plans - The company adopted Share Incentive Plan A on March 8, 2023 and Share Incentive Plan B on May 16, 2023[79] - The company's equity incentive plans include pre-IPO share option plan, post-IPO share option plan, Share Incentive Plan A and Share Incentive Plan B[79] Research and Development - The company is engaged in research and development of minimally invasive procedures such as TAVR, TMVR, TPVR and TTVR[79] Board of Directors - The company's board of directors includes executive directors Qian Yongxun, Liu Guizhen, Chen Yongcheng and Zhou Jingzhong[80] - The company's non-executive directors include Dr. Zhou Yi and Mr. Liang Dingxin[80] - The company's independent non-executive directors include Chen Yeqiang, Lou Jiaqiang and Dr. Tan Lifen[80] Accounting Standards - The company adopted new accounting standards and amendments, including HKAS 12 (Amendments) related to deferred taxes, effective from January 1, 2023[12] Production Capacity - The new production base in Shenzhen is expected to increase annual production capacity to 1.8 million balloon products and 60,000 stent products[42] - The company plans to build a new R&D and production facility in Hangzhou, which is expected to add an annual production capacity of 2.4 million products[42] Market Strategy - The company plans to promote non-volume-based procurement products in the Chinese market, focusing on microcatheters and peripheral products[45] - The company is actively seeking M&A targets for innovative and high-quality endovascular intervention products to synergize with its extensive sales network[46] Patents and Certifications - The company has over 210 authorized patents and patent applications globally, with more than 30 in the US and 55 in China[40] - The company obtained CE certification for Scoreflex TRIO balloon dilatation catheter and completed CE certification updates for Sapphire PTCA series products under MDR[40]

Financial Performance - The company achieved a record revenue of approximately $136.8 million for the fiscal year 2022, representing a year-on-year growth of 17.5%[7] - Gross profit increased by 13.9% to approximately $92.5 million, with an adjusted net profit of $26.7 million, up 24.9%[7] - Global sales volume reached 1.2 million units, marking an increase of about 20.0%[7] - Revenue for 2022 reached $136.824 million, representing a 17.5% increase from $116.462 million in 2021[14] - Gross profit for 2022 was $92.458 million, up 13.9% from $81.172 million in 2021[14] - The company reported a profit before tax of $21.791 million, a turnaround from a loss of $1.318 million in 2021[14] - Net profit attributable to shareholders for 2022 was $18.491 million, compared to a loss of $4.444 million in 2021[14] - Adjusted net profit for 2022 was $26.666 million, an increase of 24.9% from $21.352 million in 2021[16] - The adjusted net profit margin improved to 19.5% in 2022, up from 18.3% in 2021[16] - The company achieved a net profit of $18.5 million in 2022, compared to a loss of $4.4 million in 2021, resulting in a net profit margin of 13.5%[46] Market Performance - Revenue from the Japanese market grew by 8.8% to $32.4 million, despite an 18.6% decline in the average exchange rate of the yen against the dollar[8] - Revenue from the Chinese market surged by 38.1% to $23.6 million, supported by a direct sales team established in 2021[8] - The U.S. market revenue increased by 122.6% to $16.6 million, bolstered by the launch of the Scoreflex NC balloon product[8] - Revenue from coronary interventional medical devices increased significantly, with the scoring balloon product generating an additional $21.4 million in revenue due to increased sales in the US, China, and Japan[31] - Revenue from the US market surged by $9.2 million, primarily due to the launch of the Scoreflex NC series[32] - Revenue from the Chinese market rose by $6.5 million, attributed to increased sales of the Scoreflex series[32] Research and Development - The company plans to enhance its financial position by investing in research and development, seeking strategic acquisitions, and increasing production capacity[11] - A new R&D production base was established in Shenzhen, China, to accelerate the development of structural heart intervention products and neuro-intervention products[11] - Research and development expenses rose by 16.2% to $14.1 million, driven by increased personnel costs and material expenses[40] - The product portfolio includes PCI/PTA intervention devices and is expanding into neurovascular intervention and structural heart disease[22] Capital and Investments - The company successfully raised approximately HKD 480.8 million through its IPO on December 23, 2022, marking a significant milestone[9] - The company successfully listed on the Hong Kong Stock Exchange on December 23, 2022, raising approximately HKD 480.8 million to accelerate product development and market expansion[23] - Total capital expenditure for the year ended December 31, 2022, was approximately $4.2 million, mainly for the purchase of property, plant, and equipment[55] - The planned use of proceeds includes HKD 62.7 million (17.1%) for ongoing research and development of drug-eluting balloon products, expected to be utilized by the end of 2027[126] - The company allocated HKD 149.3 million (40.8%) for the construction and renovation of a new facility, with a total building area of 50,000 square meters, expected to be completed by the end of 2024[126] - A total of HKD 39.5 million (10.8%) is earmarked for potential strategic acquisitions and partnerships to expand the product portfolio and enhance R&D capabilities, expected to be utilized by the end of 2027[126] Assets and Liabilities - Total non-current assets increased to $36.785 million in 2022 from $33.172 million in 2021[18] - Current assets rose significantly to $314.275 million in 2022, compared to $235.355 million in 2021[18] - The net current assets as of December 31, 2022, were $290.5 million, an increase from $218.9 million as of December 31, 2021, primarily due to new equity raised post-IPO and reclassification of financial assets[53] - Cash and bank balances increased to $229.1 million as of December 31, 2022, up from $175.9 million in 2021, mainly due to proceeds from the IPO[48] - As of December 31, 2022, the company had no assets pledged as collateral[56] Corporate Governance - The board of directors includes four executive directors and three independent non-executive directors, with terms ranging from 1 to 3 years[91] - The company has maintained high standards of corporate governance to protect shareholder interests and enhance corporate value[186] - The board has held three meetings since the company was listed on December 23, 2022, with all directors in attendance[199] - The company has complied with all applicable provisions of the corporate governance code since its listing date[188] - The company has established a nomination committee responsible for reviewing the board's structure and assessing the independence of non-executive directors[195] Employee and Operational Insights - As of December 31, 2022, the company employed 915 full-time employees, with 656 in China, 111 in Japan, 65 in Europe, 51 in Hong Kong, 17 in Malaysia, 8 in Singapore, and 7 in the United States[108] - Employee benefits expenses for the year ended December 31, 2022, were approximately $50.6 million, an increase from $45.0 million for the year ended December 31, 2021, representing an increase of about 12.2%[108] - The company recognizes the importance of maintaining good relationships with employees, customers, and suppliers, with no significant disputes reported during the reporting period[113] - The company invests in continuous education and training programs for employees to enhance their skills and knowledge[108] Future Outlook - Future outlook indicates a projected revenue increase of 15% for 2023, driven by new product launches and market expansion strategies[200] - The company plans to increase its marketing budget by 30% in 2023 to support new product launches and brand awareness initiatives[200] - New product lines are expected to launch in Q2 2023, with an estimated contribution of 20% to total revenue in the first year[200] - Market expansion efforts include entering two new regions, which are expected to contribute an additional 10% to overall revenue in 2023[200] - The company has completed a strategic acquisition of a smaller competitor for 10 million, which is anticipated to enhance market share by 8%[200]