Gelonghui, March 29丨Beacon Medical-B (02170.HK) announced its annual results. For the year ended December 31, 2023, the Group's revenue was RMB 208 million, up about 48% year on year; gross profit was RMB 91.351 million, up about 53% year on year; the Group's overall gross margin was 43.9%, which is basically the same as 42.2% for the year ended December 31, 2022. The increase in revenue was mainly due to (i) the steady increase in sales of PGT kits; (ii) the increase in sales of ultra-low temperature storage equipment and smart liquid nitrogen tanks; and (iii) the increase in revenue from sales of consumables such as embryo incubators and culture medium.
During the reporting period, the company completed the acquisition of all shares in BMX Singapore, and BMX Singapore has since become a wholly-owned subsidiary of the company. BMX Singapore is a leading supplier of fertility products. It automates and standardizes laboratory workflows in IVF clinics. It has a comprehensive product portfolio and extensive global sales network and experience, which can enrich and enhance the company's product portfolio and sales network and experience. BMX Singapore operates a world-class business with partners in many countries and regions around the world. Through the independent development and commercialization team and distributors of BMX Singapore, BMX products in Singapore are sold directly to clinics in Europe, Asia and America.
In terms of commercialization, the sales model is being changed to a dealer agent sales model. As of December 31, 2023, the group had 55 sales staff in China and cooperated with more than 40 dealers, covering a total of more than 300 assisted reproductive institutions in China. At the same time, Singapore BMX has a wide range of business and partners in more than 20 countries and regions outside of China. It has 20 sales staff, cooperates with more than 30 dealers, and serves more than 600 overseas clinical institutions.
As of December 31, 2023, the Group has covered 81 leading third-generation IVF hospitals, accounting for 76% of the total 106 third-generation units. The Group's assisted reproduction centers have sunk to 300, with a coverage rate of over 50%. The number of hospital cycles covered by the entire pipeline of products reached 400,000, an increase of 38% over the previous year.
To achieve the company's vision, the Group plans to implement the following business strategies: (i) Accelerate the expansion of the entire industry chain based on the advantages of PGT products in the industry. At the same time, it empowers other product businesses in the five major scenarios and increases the stickiness of pipeline products, thereby increasing the business penetration rate of the company's five major laboratory scenarios; (ii) it is sinking and expanding the sales network, covering 500 assisted reproduction centers in China, and increasing the sales scale. Accelerate the certification process of pipeline products in various scenarios and accelerate the commercialization process. At the same time, help the Assisted Reproduction Center complete the localization upgrade and deployment of laboratories to further expand its market share; (iii) strengthen the international strategic layout, establish an extensive global sales network to expand the international market, and promote rapid overseas sales of independently developed products. At the same time, we will build an international standard laboratory, KOL and overseas sales team to gradually promote PGT, andrology, and frozen products to overseas markets; (iv) continue to empower the company through mergers and acquisitions and external cooperation to strengthen technology research and transformation capabilities and build a world-leading R&D system; and (v) build a global production base covering the entire assisted reproduction industry chain through headquarters construction to achieve high-quality large-scale delivery capacity, and adhere to the industrialized development of independent research and domestic alternatives to provide the country with safety guarantees for biologics and prepare for large-scale market volume.