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Zylox-Tonbridge maintains strong revenue and gross profit growth, including gross margin improvement driven by its platform-based strategy in 1H22
On August 15, Zylox-Tonbridge (2190.HK, “the Company”) released its 2022 interim results.
The Company’s revenue increased 113.7% YoY to RMB 153 million in the first six months of 2022. The revenue of neurovascular interventional products business increased 160.1% YoY to RMB 112 million, and the revenue of peripheral-vascular interventional products business increased 43.9% to RMB 41 million. The gross profit of the Company reached RMB 115 million, up 121.5% compared with a year earlier. The gross profit margin continues to improve and increased from 74.1% in 2021 to 75.6% in the first half of 2022.
Strong revenue and gross profit growth, together with increased other income led to the Company’s net loss sharply decreasing by 63.4% compared with the same period in 2021. The Company also achieved a turnaround Non-IFRS adjusted net profit of RMB 8.64 million by excluding share-based compensation.
Beyond the outstanding financial results, the Company also achieved sound progress in product research and development. To date, the Company has a total of 17 products approved by the NMPA and eight products with CE Mark, as well as 13 products in the clinical trial stage and 11 products in the registration stage.
Dr. Johnathan Zhong Zhao, Founder & Chairman CEO of Zylox-Tonbridge, said, “In the first half of 2022, the Company managed to maintain robust growth and further improved operational efficiency in a challenging market environment, demonstrating our consistent efficient execution. We will continue to enhance our commercialization capability and focus on innovation, and leverage the advantages of our integrated R&D and manufacturing platforms to provide patients with more high-quality and affordable products.”
The platform-based strategy highlights the advantages of efficiency
With the establishment of R&D and manufacturing platforms, the Company is accelerating product development and expanding its product portfolio to better respond to unmet clinical needs, providing patients with total solutions.
In April, the Company received NMPA approval for its Carotid Rx PTA Balloon Catheter and PTA Balloon Catheter-Large Diameter. These two new products are both developed and manufactured on the Company’s leading balloon forming and manufacturing platform, on which the Company produced all balloon catheter products with consistent high quality and efficiency. Benefiting from that, these two products are well-received among physicians and patients as soon as they entered the market.
The Company’s in-house R&D technology platforms also support and accelerate upgraded product development, such as Clot Retriever Device II, and the second generation UltraFree® DCB. Some of the upgraded products are expected to launch this year.
In terms of clinical trials, the Company successfully completed patient enrollment for clinical trials of three products as planned, including the studies of Flow Diverter, Intracranial Drug Coated Balloon Catheter, and Peripheral Detachable Embolization Coils. The Company also finished the 12-month follow-up for a clinical trial of Peripheral Venous Stent System.
Diversified commercialization accelerates market penetration
During the reporting period, the Company continued to speed up its commercialization by adjusting its sales and marketing strategies, such as organizing and participating in more online educational programs and meetings to promote academic communication with experts both at home and abroad.
At present, the Company has covered more than 2,300 hospitals in 31 provinces in China. Especially in lower-tier markets, the Company accelerated its penetration into hospitals, providing local patients with more quality and affordable products. The Company was actively responsive to the centralized procurement policy. In the current round of volume-based procurement for high value medical consumables in Jiangsu Province and Fujian Province, the Company has won both bids for neurovascular embolization coils product procurement.
With regards to the overseas market, the Company is stepping up the effort for product registration and commercialization, the Company’s neurovascular embolization coils product has submitted applications for the CE Mark and FDA 510K registration.
Looking ahead to the second half of 2022, the Company believes that based on the approval and launch of more products, it will continue to play a leading role in the domestic market with its comprehensive product portfolio. The Company will also adhere to its original mission of providing high-quality and affordable products, establishing a leading platform for minimally invasive medical devices in China.
Zylox-Tonbridge is one of the leading players in the neuro- and peripheral-vascular interventional medical device market in China. The Company was founded in 2012 and is headquartered in Hangzhou, China.
As an integrated medical device company supported by our in-house R&D and manufacturing capabilities, proprietary technological platforms, and commercialization capabilities, we strive to provide patients with high-quality and affordable medical devices and services, so that everyone has access to the high-quality life brought by advanced medical technology.
For more information, please visit our official website:www.zyloxtb.com