Lepu Medical: Net profit of 237 million in the first half decreased by 10% year-on-year

From January to June 2012, the company realized operating income of 507 million yuan, an increase of 8.01% over the same period of the previous year; operating profit of 274 million yuan; net profit attributable to ordinary shareholders of 237 million yuan, a decrease of 9.04% and 10.07 respectively over the same period of last year. %.

During the reporting period, the company’s key work was reviewed as follows:

(1) Continue to strengthen the construction of domestic marketing system and enhance sales competitiveness During the reporting period, the growth rate of the domestic support market continued to slow down, and the pressure of market competition was increasing. The company firmly establishes the user's first guiding ideology, insists on creating a “channel sinking” marketing system, and continuously expands and consolidates sales in second- and third-tier cities. While continuing to strengthen training on the marketing team's marketing capabilities and professional skills, the company actively promotes marketing concepts centered on academic promotion, organizes and participates in large-scale domestic professional academic conferences, and strives to increase the company's market for new product carriers without drug carriers. Promotion efforts. At present, the carrier-free drug stent has been completed in some provinces, municipalities, and hospitals by qualified suppliers for bids and procurement. The product sales have achieved breakthroughs, and sales revenue has accounted for more than 8% of the company's first-half stent sales, and has shown a trend of gradual increase. As of the end of the reporting period, the overall sales growth of domestic drug holders slowed down compared to the same period of last year, but the company still maintained a steady increase in sales; while angiography machines further expanded sales, new economic growth points will gradually emerge in the future. And can open up new market space for related consumables.

(2) Continuously Accelerating Technological Innovation and Enhancing Product Technology R&D Capability During the reporting period, the company continued to increase investment in R&D funding in terms of technological innovation and product development. In the first half of the year, R&D investment was 28,696,806.33 yuan, accounting for 5.66% of operating revenue. To ensure the company's "production and sales of a generation, the development of a registered generation, pre-research a generation" of R & D and innovation system and the implementation of new product strategic layout.

By the end of the reporting period, the company had a total of 133 patents that were filed and declared, including 71 authorized patents and 62 applications for patents; 51 product registration certificates, including 6 product registration certificates during the reporting period, including: Physiological mapping catheter, therapeutic electrophysiology radiofrequency ablation catheter, dilatation pressure pump, myocardial troponin I/myoglobin/creatine kinase isoenzyme test paper, cardiac troponin I/cardiac fatty acid binding protein diploid A test strip, LEPU Quant-Gold-1 immunometric assay, etc.

The launch of the above new products has enriched the company's core product system, expanded its technical fields and product lines, and laid a solid foundation for improving the company's comprehensive competitiveness. Among them, the successful acquisition of diagnostic electrodiagnostic catheters and therapeutic electrophysiology radiofrequency ablation catheter registration marks that the company's products have entered the field of electrophysiology. In order to open up new areas for interventional treatment of hypertension, the company has further strengthened the study of renal artery radiofrequency ablation catheters and made significant progress. At present, animal experiments have been basically completed.

(3) Actively exploring overseas markets and promoting the company's internationalization strategy During the reporting period, the company continued to promote the implementation of its internationalization strategy, and further improved the overseas market sales system by expanding and integrating overseas sales platforms, which significantly enhanced the marketing capabilities of the company's overseas markets. . As of the end of the reporting period, the company has passed CE certification for 23 products such as intravascular drug (rapamycin) eluting stent system, heart valves, and disposable imaging catheter; the company and its subsidiaries' products have been registered in 23 countries. Involving 26 products with a total of 115 registration certificates; the company’s key products have successfully entered European countries and markets with high regulations and standards such as the United Kingdom, Switzerland, Italy, Germany, Spain, and the Netherlands, and have been increasingly recognized by the European market; the company is located in Europe. The controlled Comed company successfully obtained the CE certificate for the occluder product, which is one of the main products.

From January to June 2012, the company's products have been sold to 64 countries and regions, and overseas sales of products have reached RMB 12,229,000, an increase of 40.57% year-on-year.

(4) Actively looking for M&A projects to promote rapid growth of the company's performance During the reporting period, the company actively developed related products and industries in cardiovascular media/embedded products, and continued to explore mergers and acquisitions of medical devices related to the company's main business. The feasibility of manufacturing diagnostic and therapeutic equipment manufacturers; Actively seeking overseas technical cooperation, supported by the company's technological and resource advantages, in order to achieve a rapid expansion of domestic and foreign technology and markets, and further enhance the company's cardiovascular and implanted diagnostic equipment and equipment Comprehensive Competitiveness.

As of the end of the reporting period, the company has basically completed the controlling merger and acquisition of Comed. On January 18th, 2012, the Ministry of Commerce approved the approval of [2012] No.00005 on business and investment, and on February 20th, 2012, it was approved by the National Development and Reform Commission Development and Reform Commission Office of Foreign Investment Preparedness [2012] No. 25, May 8, 2012. Through the approval of the capital project of the State Administration of Foreign Exchange (SAFE) Beijing Foreign Exchange Management Department, the establishment of Lepu (Europe) Company has been completed and the relevant legal changes in the merger and acquisition of Comed have been implemented.

(5) Construction of fund-raising projects During the reporting period, the company's four IPO construction projects were completed and all had reached the construction target. The "Technical Transformation Project of the Cardiovascular Drug Stent and Delivery System Production Line" was completed at the end of June 2011. It now has an annual production capacity of 170,000 drug stents and meets the project construction goals. The company conducted a special audit and acceptance of the project. During the reporting period, the project's production capacity was further developed and the realized benefits reached 55.52 million yuan.

The “Product R&D Engineering Center Construction Project” was completed at the end of June 2012. A total of six laboratories for stent production, guidewires, catheters, and assistive devices, and drug release analysis, physical and chemical analysis, and biochemical analysis have been established. The project construction goals, the company has accepted the project. The project plans to invest 66.41 million yuan in funds, and the actual use of funds is 50.189 million yuan, accounting for 87.36% of the planned investment. The completion of the product R&D engineering center provides hardware support and engineering technical support for the research, experiment, and trial production of the company's new products, new technologies, and new processes. During the construction period, it has provided new product R&D and mass production for the company's carrier-free drug holders. Effective support has ensured the smooth implementation of the company's innovation strategy and overall goals.

The “Interventional Catheter Expansion and Technology Transformation Construction Project” was completed at the end of June 2012. The company has 100,000 sets of PTCA balloon dilatation catheters, 150,000 sets of drug-centered intravenous catheters and 650,000 sets of imaging catheters. The company's production capacity has reached the target of project construction and the company has accepted the project. The project plans to invest 180,600,000 yuan of funds, the actual use of funds is 9,750.97 million yuan, including 8.14 million yuan of initial liquidity, excluding decoration quality assurance funds, accounting for 53.69% of the planned investment. The company accepted the project.

The “Industrialized Technical Transformation Project for the Construction of Wires and Sheaths Involved” was completed at the end of June 2012. The company has a production capacity of 120,000 PTCA guidewires and an annual production capacity of 450,000 sheaths to meet the project construction goals. The company has accepted the project. The project plans to invest 77.38 million yuan in funds, the actual use of funds is 43.817 million yuan, including 7.85 million yuan of circulating funds, excluding the amount of warranty money for decoration, accounting for 57.32% of the planned investment. The company accepted the project.

The over-raised capital construction project “Core Product Domestic and Foreign Marketing Network Construction Project” was implemented in an orderly manner as planned. During the reporting period, on the basis of further accelerating the construction of various domestic marketing divisions, the company actively promoted the construction of a simulation training center for interventional diagnosis and treatment technology; in the international market, the company has basically completed the merger and acquisition work of Comed and accelerated the overseas sales of related products. The pace has laid a solid foundation for improving the strategic layout and product integration of the company's international market. The project plans to invest 176,600,000 yuan, and has invested 88,253,200 yuan, accounting for 49.42% of the planned investment.