MICROPORT-微创医疗(00853) - 2023 - 年度财报

Revenue and Financial Performance - Revenue increased by 13.1% to $950.725 million in 2023 compared to$ 840.831 million in 2022[4] - Global revenue reached $950.7 million, a year-on-year increase of 15.8%[9] - The company's global business revenue reached$ 950.7 million, a year-on-year increase of 15.8% (excluding exchange rate effects)[14] - Total revenue for the year ended December 31, 2023, was $950.7 million, a 13.1% increase from$ 840.8 million in 2022, with a 15.8% growth excluding foreign exchange impact[41] - Revenue for the year ended December 31, 2023, reached $950.7 million, representing a 15.8% growth compared to 2022 (excluding currency impact)[87] - The company achieved double-digit revenue growth in both domestic and international markets despite adverse factors[87] Gross Profit and Loss - Gross profit rose by 6.0% to$ 532.098 million in 2023 from $501.771 million in 2022[4] - Net loss for the year widened by 10.4% to$ 649.157 million in 2023 from $588.115 million in 2022[4] - Loss attributable to equity shareholders increased by 9.4% to$ 477.629 million in 2023 from $436.515 million in 2022[4] - Net loss was$ 649.1 million, with a non-Hong Kong Financial Reporting Standards adjusted net loss of $434.6 million, narrowing by 13.5%[9] - The group's non-Hong Kong Financial Reporting Standards adjusted net loss narrowed by 13.5% to$ 434.6 million, with a focus on achieving break-even in the coming years[15] - Net loss widened from $588.1 million in 2022 to$ 649.2 million in 2023, with non-HKFRS adjusted net loss improving to $434.6 million from$ 502.5 million[61] - The company reported a loss of $649.2 million for the year ended December 31, 2023 (attributable to equity shareholders:$ 477.6 million)[87] Business Segment Performance - Heart valve business revenue increased by 32.5%, large artery and peripheral vascular intervention business by 32.2%, and neurointervention business by 21.6%[9] - Surgical robot business revenue surged by 258.4%[9] - Overseas business revenue grew by 53.9% to $57.1 million[9] - Cardiovascular intervention business achieved a global revenue growth of 16.2%, with overseas revenue increasing by 71.3%[9] - Orthopedic business global revenue increased by 7.3%, with domestic revenue rising by 33.8%[10] - Rhythm management business global revenue decreased by 1.0%, but domestic revenue grew by 25.7%[10] - Revenue from the heart valve business increased by 32.5%, while the large artery and peripheral vascular intervention business grew by 32.2% year-on-year[14] - The neurointervention business achieved a revenue growth of 21.6%, with adjusted net profit increasing by 49.5%[11] - The surgical robot business revenue surged by 258.4% year-on-year, driven by core product expansion[14] - Cardiovascular business global revenue increased by 16.2% to$ 147.2 million, driven by international market penetration and new product contributions[16] - Overseas sales revenue for the cardiovascular business surged by 71.3% to $36.5 million, with significant growth in Asia (excluding China) and South America[17] - Domestic sales revenue for the cardiovascular business grew by 6.1% to$ 110.7 million, with a 66.9% increase in consumables revenue[18] - Global orthopedic revenue increased by 7.3% to $237.3 million, with domestic orthopedic revenue surging by 33.8% to$ 27.3 million[19] - Rhythm management business generated global revenue of $207.0 million, a 1.0% year-over-year decline (excluding currency impact)[21] - Aortic and peripheral vascular intervention business achieved revenue of$ 168.0 million, a 32.2% year-over-year growth (excluding currency impact), with a net profit of $69.1 million, up 31.7%[23] - Neurointervention business revenue reached$ 93.9 million, a year-on-year increase of 21.6% (excluding exchange rate impact), with non-Hong Kong Financial Reporting Standards adjusted net profit of $27.7 million, up 49.5% year-on-year, and net profit of$ 19.1 million, turning from loss to profit[25] - Heart valve business revenue reached $47.1 million, a year-on-year increase of 32.5% (excluding exchange rate impact), with gross margin improving by 3.8 percentage points[27] - Surgical robot business revenue reached$ 11.0 million, a significant increase of 258.4% year-over-year (excluding currency impact)[31] - Cardiovascular intervention business revenue reached $147.2 million, up 16.2% excluding foreign exchange impact, driven by market expansion and increased sales in China[42] - Orthopedic medical devices revenue was$ 237.3 million, a 7.3% increase excluding foreign exchange impact, with significant growth in China at 33.8%[43] - Rhythm management business revenue was $207.0 million, down 1.0% excluding foreign exchange impact, but China saw a 25.7% increase[44] - Large vessel and peripheral vascular intervention business revenue grew 32.2% excluding foreign exchange impact to$ 168.0 million, driven by new product launches and international expansion[45] - Neurovascular intervention business revenue increased 21.6% excluding foreign exchange impact to $93.9 million, supported by market-leading products and new approvals[46] - Heart valve business revenue rose 32.5% excluding foreign exchange impact to$ 47.1 million, with strong growth in both domestic and international markets[47] - Surgical robotics business revenue surged 258.4% excluding foreign exchange impact to $11.0 million, driven by commercialization of new robotic systems[48] R&D and Expenses - R&D expenses decreased by 9.6%, and management expenses decreased by 18.5%[9] - The group's R&D expenses decreased by 9.6%, while management expenses dropped by 18.5% due to organizational streamlining[15] - R&D costs decreased by 9.6% from$ 419.8 million in 2022 to $379.4 million in 2023, attributed to cost control and resource prioritization[54] - Distribution costs increased by 2.0% from$ 328.2 million in 2022 to $334.9 million in 2023, driven by market expansion and promotional activities[55] - Administrative expenses decreased by 18.5% from$ 247.5 million in 2022 to $201.7 million in 2023, due to effective cost control and operational efficiency improvements[56] - Other operating costs surged by 242.4% from$ 49.3 million in 2022 to $168.7 million in 2023, mainly due to impairment provisions for goodwill and equity-accounted investees[57] - Financing costs rose by 22.5% from$ 78.4 million in 2022 to $96.0 million in 2023, driven by increased interest on convertible bonds and borrowings[58] Assets and Liabilities - Total assets decreased to$ 3,932.405 million in 2023 from $3,994.085 million in 2022[6] - Total liabilities increased to$ 2,529.408 million in 2023 from $2,201.417 million in 2022[6] - Total equity decreased to$ 1,402.997 million in 2023 from $1,792.668 million in 2022[6] - Cash and cash equivalents decreased from$ 1,203.0 million in 2022 to $1,019.6 million in 2023, primarily due to increased deposits and capital expenditures[63] - Total borrowings increased by$ 274.9 million to $1,566.5 million in 2023, with the debt-to-asset ratio rising from 55.1% to 64.3%[64] - Capital expenditures totaled$ 199.1 million in 2023, allocated to building construction, equipment purchases, and R&D projects[66] International Expansion and Market Penetration - Overseas business revenue grew by 53.9% to $57.1 million[9] - The company's products are now sold in 31 overseas countries and regions, with international business revenue increasing by 51.2%[11] - Overseas sales revenue for the cardiovascular business surged by 71.3% to$ 36.5 million, with significant growth in Asia (excluding China) and South America[17] - Overseas sales revenue for aortic intervention products reached $11.5 million, a 51.2% year-over-year increase, with products now covering 31 countries[24] - Overseas sales revenue for the neurointervention business reached$ 4.5 million, a significant increase of 44.6% year-on-year, with rapid growth in the Asia-Pacific, EMEA, and Latin America regions[26] - The company plans to accelerate global expansion and integrate the MicroPort brand with global operations, aiming to bring its products to more countries and regions[37] - Non-China sales accounted for 48.2% of total revenue, driven by the company's diversified product portfolio and globalization strategy[39] Product Approvals and Certifications - The company obtained 44 NMPA Class III registrations, 19 FDA approvals, and 20 CE certifications in 2023[12] - The company's neurointervention products achieved a domestic market share of 8.2%[11] - The company and its associates obtained 33 Class III medical device registration certificates or completed significant registration changes in China, and 15 products were approved by the US FDA, with 14 receiving EU CE certification during the reporting period[34] - Castor® branched stent has been clinically applied in 16 countries globally, while Minos® abdominal aortic stent is used in 19 countries[24] - Reewarm® PTX drug balloon expanded into international markets, gaining approval in Brazil and Colombia[24] - VitaFlow Liberty® received registration approvals in Thailand, Russia, and Indonesia, with TAVI products entering nearly 100 hospitals in Argentina, Colombia, Thailand, and Russia, and achieving 120 commercial implants[28] Surgical Robotics and Innovation - Surgical robot business revenue surged by 258.4%[9] - The surgical robot business revenue surged by 258.4% year-on-year, driven by core product expansion[14] - The company's surgical robot product portfolio now covers four major sectors: endoscopy, orthopedics, panvascular, and percutaneous puncture[11] - Surgical robot business revenue reached $11.0 million, a significant increase of 258.4% year-over-year (excluding currency impact)[31] - Tuo Mai® four-arm laparoscopic surgical robot achieved multiple department approvals and secured bids in top-tier hospitals, solidifying its leading position in the domestic market[31] - Mona Lisa prostate puncture robot positioning system received NMPA approval and achieved commercialization milestones[31] - R-ONE® vascular interventional surgical robot accumulated multiple potential orders shortly after approval, demonstrating strong commercialization potential[31] - Tuo Mai® completed over 120 5G remote human clinical surgeries globally with a 100% success rate, setting multiple world records[31] - Hong Hu® orthopedic surgical robot secured 15 overseas orders and completed over 100 robot-assisted surgeries, with clinical efficacy reaching international standards[32] - Tuo Mai® achieved its first overseas sale and successfully assisted in the first overseas prostate cancer radical surgery, marking a breakthrough in international markets[32] Corporate Governance and Leadership - Dr. Chang Zhaohua, born in 1963, is the Chairman, Executive Director, and CEO of the company, with over 33 years of experience in the medical device industry[69] - Dr. Chang Zhaohua founded Shanghai MicroPort Medical Devices (Group) Co., Ltd. in 1998 and holds a Ph.D. in Biological Sciences from the State University of New York at Binghamton[69] - Bai Fuji, born in 1944, is the Honorary Chairman and Group Advisor, previously serving as Executive Director at Otsuka Medical Devices Co., Ltd. from 2011 to 2017[70] - Ashida Norihiro, born in 1954, has been a Non-Executive Director since 2006 and previously held senior positions at Mizuho Corporate Bank and Otsuka Holdings[70] - Sun Weiqin, born in 1980, was appointed as a Non-Executive Director on August 30, 2023, and currently serves as Deputy General Manager of Shanghai Zhangjiang Technology Venture Capital Co., Ltd[71] - Dr. Luo Qiyi, born in 1962, was appointed as a Non-Executive Director on August 30, 2023, with over 32 years of experience in the medical device industry and holds more than 300 patents[72] - Peng Bo, born in 1968, was appointed as a Non-Executive Director on November 10, 2023, with over 25 years of experience in marketing and sales[72] - The company is divided into three distinct regional operating units: Greater China Executive Committee, Intercontinental Orthopedics Executive Committee, and Intercontinental Rhythm Management Executive Committee, managed by the Executive Director, Founder, Chairman, and CEO Dr. Chang Zhaohua[75] - Sun Hongbin, the company's CFO and Chairman of the Greater China Executive Committee, has over 26 years of financial experience and previously served as Director and General Manager of Otsuka China from 2006 to 2010[76] - Jiang Lei, Chairman of Shanghai MicroPort Medical (Group) Co., Ltd. and Co-Chairman of the Greater China Executive Committee, has over 26 years of experience in the pharmaceutical and medical device industry and joined the company's coronary marketing department in 2006[76] - Dr. Zhang Jie, Chief Technology Officer, has led the development of the Firehawk® stent and holds 53 domestic and international patents[77] - Mr. Xu Yimin, Senior Executive Vice President, has over 24 years of experience in the medical device industry and previously served as Vice President of Quality, Registration, and Clinical Affairs[77] - Dr. Le Chengyun, Executive Vice President of Business Development and Project Management, has extensive experience in biotech and biomedical engineering, including 7 years at a biotech company in Southern California[77] - Mr. Que Yiyun, Executive Vice President of Intelligent Manufacturing and Global Supply Chain, has over 18 years of experience in the medical device industry and previously managed production and engineering at the company[77] - Ms. Hui Qing, Senior Vice President of Organizational Capability, oversees IT and medical AI functions and has over 12 years of experience at Boston Scientific[78] - Ms. He Li, Senior Vice President of Securities and Legal Affairs, has over 13 years of experience in accounting, financial analysis, and risk control, and over 14 years in corporate governance[78] - Mr. Jonathan Chen, Chief International Business Officer, has over 27 years of experience in the medical device industry and previously led transformative M&A and licensing deals at Angiotech Pharmaceuticals[79] - Mr. Todd Smith, Senior Vice President of Finance at MicroPort Orthopedics Inc., has been with the company since the acquisition of Wright Medical Technology's joint reconstruction business in 2014[79] - Mr. Yu Tianbai, Executive General Manager of Orthopedics China, has been with the company since 2015 and previously held roles at Johnson & Johnson[80] - Mr. Robert Alan Cripe, Global Commercial Officer at MicroPort Orthopedics Inc., has over 31 years of experience in the medical device industry, specializing in joint product sales and marketing[80] Shareholder and Equity Information - Otsuka Holdings Co., Ltd. holds a 20.87% stake in the company with 382,994,120 shares[112] - We'Tron Capital Limited holds an 18.69% stake in the company with 343,024,244 shares[112] - JPMorgan Chase & Co. holds a 12.61% stake in the company with 231,499,532 shares[112] - Shanghai Zhangjiang (Group) Co., Ltd. holds a 9.36% stake in the company with 171,748,050 shares[112] - Hillhouse Capital Advisors, Ltd. holds an 8.37% stake in the company with 153,694,000 shares[112] - Gaoling Fund, L.P. holds an 8.01% stake in the company with 147,009,000 shares[112] - Shanghai Zhangjiang Health Products Holdings Co., Ltd. holds an 8.97% stake in the company with 164,705,470 shares[116] - The total shares held by controlled entities and beneficial owners amount to 171,748,050 shares, representing 9.36% of the total issued shares[116] - Director and CEO Chang Zhaohua holds 49,047,671 shares, representing approximately 2.67% of the company's equity[108] - Director Luo Qiyi holds 9,802,432 shares, representing approximately 0.53% of the company's equity[108] - Director Chang Zhaohua holds 6,000,000 shares in MicroPort CardioFlow MedTech Corporation Limited, representing approximately 0.24% equity[109] - Director Luo Qiyi holds 6,413,144 shares in MicroPort CardioFlow MedTech Corporation Limited, representing approximately 0.26% equity[109] - No other directors or senior executives hold interests in the company or its associated corporations that require disclosure as of December 31, 2023[110] Financial Risks and Liquidity - The company faces financial risks, including credit risk, interest rate risk, liquidity risk, and currency risk[90] - Market risks include pressure on product pricing due to government bidding policies and uncertainties in medical insurance reimbursement levels in China[91] - The company has$ 448 million in convertible bonds due for redemption in June 2024 and $295.4 million in short-term interest-bearing borrowings due in 2024[189] - The company's liquidity depends on its ability to obtain external financing before June 2024 to meet the redemption requirements of convertible bondholders and to refinance existing bank borrowings[190] - The company secured a$ 150 million convertible term loan facility with an annual interest rate of 5.75% and an option to increase the principal by up to $50 million, totaling$ 200 million if fully exercised, to repay the $448 million convertible bonds due in