The Zhitong Finance App learned that on the evening of March 21, Guichuang Tongqiao Medical Technology Co., Ltd. (02190, hereinafter referred to as “Guichuang Tongqiao”, the “Company”) announced its 2023 annual results. During the reporting period, the company's revenue maintained a rapid growth rate of 530 million yuan, an increase of 58.0% year on year; gross profit increased 52.4% year on year to 380 million yuan. The company's gross margin level stabilized at 72.9% and continued to maintain good profitability. Along with the expansion of revenue scale and overall improvement in operating efficiency, Guichuang Tongqiao achieved an adjusted net profit of 7.03 million yuan in 2023.

In 2023, Guichuang Tongqiao launched a number of self-developed innovative products. Its “Tongqiao Medical” and “Guichuang Medical” have gradually become leading brands in the domestic neurovascular and peripheral vascular intervention market. As of the announcement disclosure date, the company has obtained approval from the National Drug Administration (NMPA) for listing 39 products. The company successfully grasped the market opportunities brought by collection, increased the market penetration rate of core products, and led to a significant increase in sales revenue. During the reporting period, the company's neurovascular intervention business revenue was 380 million yuan, up 63.6% year on year; peripheral vascular intervention business revenue was 140 million yuan, up 43.7% year on year.

At the same time, Guichuang Tongqiao continues to expand its overseas market business. At present, the company's overseas business has expanded to 19 countries and regions. In addition to the EU region, the company has obtained approval for a number of products in the Middle East and South America, opening up more potential markets. In 2023, Guichuang Tongqiao's overseas revenue reached RMB 14.27 million, an increase of 83.1% over the previous year.

Dr. Zhao Zhong, Chairman and CEO of Guichuang Tongqiao, said, “Over the past year, the company has efficiently launched a variety of innovative products that are differentiated and fill gaps in the market, and has vigorously expanded innovative medical technology and products on a global scale. We have successfully grasped the opportunities brought by collection, rapidly increased our market share, and achieved rapid growth in performance that exceeded expectations. These efforts enabled the company to successfully achieve early profit in 2023, laying the foundation for long-term steady development. In the future, Guichuang Tongqiao will adhere to the concept of 'constant innovation for patients', bring more high-quality and affordable innovative products to patients around the world, and lead and promote the high-quality development of China's medical device industry.”

Diversified product innovation models promote long-term steady development

In 2023, the company's product pipeline once again ushered in a harvest period. As of the announcement disclosure date, the company has established 64 product pipelines. Of these, 39 products have obtained NMPA approval for listing, 8 products have obtained EU CE certification, and many more products have been approved for listing in the Middle East, South America and other regions.

With the launch of a number of self-developed innovative products, Guichuang Tongqiao's market competitiveness and brand influence are constantly increasing. The ZYLOX Penguin Iliac Stent System and the ZYLOX Phoenix Peripheral Detachable Fibrous Spring Ring Embolization System were approved for marketing, continuing to expand the company's leading edge in the peripheral venous treatment market. At the same time, based on a deep understanding of clinical needs and an efficient R&D process, the company has successively launched a variety of iterative upgrade products, including Tongqiao Jiaolong II intracranial embolization stents, UberVana DCB, etc., to bring more comprehensive choices to doctors and patients.

Guichuang Tongqiao actively cooperates with global innovative medical device companies to introduce the world's leading medical technology and breakthrough innovative products. After reaching a strategic cooperation with Avinger, Guichuang Tongqiao is expected to commercialize products such as Pantheris OCT image-guided plaquectomy catheters in the domestic market in 2025. At the same time, with its strong manufacturing capabilities, Guichuang Tongqiao will help Avinger enhance its competitive cost advantage in the global market and serve more global patients. This partnership will not only bring more innovative medical solutions to patients, but also inject more potential into the company's long-term growth.

Efficient operation advantages highlight continued increase in profitability

With the expansion of revenue scale, Guichuang Tongqiao's operating efficiency has improved across the board. In 2023, the company's R&D, sales and management rates decreased by 20.4, 10.9 and 11.1 percentage points, respectively, compared to 2022, driving continued growth in profitability.

With the gradual normalization of collection, Guichuang Tongqiao achieved rapid entry of various products and a significant increase in market share with differentiated product portfolios, meticulous strategic planning and efficient execution. Tongqiao Phoenix's intracranial spring ring has successfully won multiple rounds of provincial procurement, and has achieved rapid volume growth, with a domestic market share of about 10% in 2023. Since 2023, the company's core products such as the Tongqiao Silver Snake intracranial support catheter, UltraFree DCB, and Tongqiao Jiaolong intracranial embolization stent have all been successfully bid for in the collection, demonstrating the company's strong commercialization capabilities and efficient operational advantages, which are expected to accelerate the improvement of the market position during the industry pattern reshaping stage.

In the R&D and manufacturing process, the company's vigorous investment and self-built innovative technology platform and integrated R&D process have begun to show results. The company's R&D expenditure as a share of revenue fell to 49.5% from 69.9% in 2022. At the same time, the company continues to maintain stable and efficient production efficiency, and its high-quality product quality has been widely recognized by the market.

The scale of the company's overseas business continued to grow rapidly. In 2023, the company's overseas business revenue reached RMB 14.27 million, an increase of 83.1% over the previous year. In the European Union, the company's overseas warehousing and logistics center in Italy commences operation, which will better serve local doctors and patients. At the same time, the ZenFlex peripheral vascular stent system has completed post-marketing clinical trials in the European Union and enrolled all patients, laying the foundation for further clinical approval of the product in Europe. In countries such as the Middle East and South America, many of the company's products have been approved for listing, which is expected to become another important engine for enhancing influence in overseas markets and expanding overseas business development.

Looking forward to the future, in the face of a rapidly changing market environment, Guichuang Tongqiao will continue to make full use of its comprehensive competitive advantages in product innovation and efficient operation, achieve long-term steady development during the industry reshaping stage, and continue to move towards a leading vascular interventional medical device platform.