Gelonhui March 29 丨 Guichuang Tongqiao-B (02190.HK) announced that for the year ending December 31, 2022, the company achieved revenue of RMB 334 million, an increase of 87.8% over 2021. Of these, 69.9% came from the neurovascular interventional products business and 30.1% from the peripheral vascular intervention products business. Gross profit was 253 million yuan, an increase of 91.6% over the previous year. The company's gross margin increased from 74.1% in 2021 to 75.6% in 2022.

Due to the increase in revenue scale and operational efficiency, the company was able to continue to reduce net losses despite increased R&D expenses. The company's net loss decreased from RMB 199.7 million in 2021 to RMB 113.6 million in 2022. Excluding the impact of remuneration based on share payments, the company incurred non-IFRS adjusted net loss of RMB 25.9 million in 2022, while the net loss not adjusted by IFRS in 2021 was RMB 100.7 million.

The significant increase in the company's revenue was due to a number of factors, including (i) sales revenue from products approved before December 31, 2021 (including Jiaolong intracranial thrombolization stents (CRDs), Ultrafree DCB, intracranial support catheters, and intracranial aneurysm embolic spring rings) increased 84.2% in the year ending December 31, 2022; (ii) a more effective and efficient sales, marketing and distribution network; and (iii) an expanding product portfolio with the launch of five products in 2022, as hospitals and physicians vigorously adopted commercialized products, The revenue contribution of these five newly approved products, such as carotid balloon dilatation catheters (Rx), intravenous radiofrequency closed catheters, and recyclable venous venous filters, accounted for more than 1.9% of total revenue for the year ended December 31, 2022.

Sales revenue from outside of China increased 125.2% compared to 2021. The company continues to expand its local sales and marketing team in overseas markets. By increasing its local presence, the company hopes to establish stronger partnerships with local doctors and increase brand influence.

The company is committed to establishing an extensive sales network to enhance the company's ability to serve doctors and patients across China. With the company's doctor-oriented marketing capabilities, the company has launched various offline and online marketing activities to allow doctors across the country to share and promote comprehensive treatment solutions based on the company's broad product portfolio. As of the date of this announcement, the company has established an extensive distribution network covering more than 3,300 hospitals in 31 provinces and municipalities directly under the Central Government of China.

The Group's R&D expenditure for the year ended 31 December 2022 was RMB 233.5 million, an increase of 38.9% over RMB 168.1 million in the previous year. The increase was mainly due to (i) the increase in the number of R&D personnel and the increase in remuneration based on share payments from RMB 39.5 million in the previous year to RMB 47.7 million in the same year; and (ii) the increase in testing and clinical trial expenses, professional service expenses, and raw materials and consumables used from RMB 73.4 million in the previous year to RMB 88.6 million in the same year, mainly due to more R&D projects and the progress of such projects.

With the company's strong R&D capabilities and integrated technology platform, the company continued to advance product development while withstanding the impact of the COVID-19 epidemic in 2022, especially in the fourth quarter of 2022. As of the date of this announcement, the company's 25 products have been approved by the National Drug Administration and 8 products have obtained the CE mark, making the company one of the leading companies with the most comprehensive product portfolio in China's vascular intervention medical device industry.

During the reporting period, the company obtained approval from the National Drug Administration for five products, and completed clinical trials for five products. From December 31, 2022 until the date of this announcement, the company's six products have been approved by the National Drug Administration. At the same time, the company has 13 candidate products in the clinical stage and 11 candidate products in the registration stage.