On 27 March, 2024, Shanghai MicroPort Endovascular MedTech (Group) Co., Ltd. (Endovastec™，Stock code: 688016.SH) announced the annual results of Endovastec™ and its subsidiaries (the Company) for the 12 months ended 31 December, 2023 (the Reporting Period).

In the Reporting Period, the Company achieved revenue of RMB 1.187 billion, representing an increase of 32.43% compared to the corresponding period of previous year; its operating profit reached to RMB 574 million, representing an increase of 38.21% compared to the corresponding period of previous year; the net profit attributable to shareholders of listed companies stood at RMB 492 million, representing an increase of 37.98% compared to the corresponding period of previous year; the net profit attributable to shareholders of listed companies excluding non-recurring gains and losses was RMB 462 million, representing an increase of 42.74% compared to the corresponding period of previous year. In 2023, amidst the ever-changing domestic and international market conditions, Endovastec™ once again delivered good business performance, with both revenue and profit maintaining sustained strong growth.

Unwavering Commitment to Innovation Yields Notable Advances Across Diverse R&D Paths

The Company has always been innovation-driven, dedicating itself to the development and application of total solutions to aortic & peripheral vascular, and tumor diseases. In 2023, notable progress was achieved across all pipelines of innovative products under development.

During the Reporting Period, in the area of aortic intervention, Castor™ Branched Aortic Stent-Graft and Delivery System (Customized) has been granted the first customized thoracic aortic stent graft filing certificate in China, and has completed the first clinical application; Cratos™ Branched Aortic Stent-Graft System and Occlusion Balloon Catheter have completed the NMPA registration dossier submission; Aegis™ II Abdominal Aortic Stent Graft System is in the pre-market clinical trial stage; Hector™ Multi-Branch Thoracic Aortic Stent Graft System and Aortic Dissection Tear Flow-limiting Stent are in the single-center clinical follow-up stage.

In the area of peripheral vascular intervention, the peripheral venous products, Vflower™ Venous Stent System have completed the NMPA registration dossier submission, and Vewatch™ Vena Cava Filter and Fishhawk™ Mechanical Thrombectomy Catheter have completed the pre-market clinical trials; the new generation 0.018″PTA Balloon Catheter and  Fibered Embolization Coil  for peripheral arterial products have completed the NMPA registration dossier submission, and BTK Drug-Coated PTA Balloon Catheter is in the pre-market clinical trials.

In the area of tumor intervention, HepaFlow™ TIPS Stent-Graft System has been approved to go through the NMPA’s Special Review Procedures for Innovative Medical Devices (Green Path) and has completed pre-market clinical trials; Polyvinyl Alcohol (PVA) Embolic Microspheres are currently in pre-market clinical trials.

During the Reporting Period, the total R&D investment of the Company is RMB 260 million, accounting for 21.94% of the Company' s revenue in the same period. The Company further systematically strengthens intellectual property management, continuously optimizing and improving to establish the “366” R&D Quality Management Experience for Medical Devices Based on the Whole Lifecycle. This scientifically grounded approach serves as a solid foundation for ensuring the sustainability of the Company’s product innovations and enhancing the success rate of the conversion of innovative products to market-ready offerings. During the Reporting Period, the Company submitted 123 patent applications in total and obtained 66 newly granted patents. As of 31 December, 2023, the company has a total of 310 authorized patents, among which 205 were authorized by China, and 105 were authorized by foreign countries.

Consolidating Domestic Leadership, Accelerating the Implementation of Global Development Strategy

In 2023, Endovastec™ significantly intensified its efforts to penetrate deeper into the domestic market, broadening both the depth and breadth of market coverage of the Company's products, and continued to consolidate the Company's leading position in the domestic market share of its aortic interventional products, while further enhancing the market competitiveness and coverage of its peripheral vascular interventional products. During the Reporting Period, key products maintained robust growth momentum, with the introduction of new products into hospitals and their subsequent implantation at the patient level accelerating. Cumulatively, the Company's products have been available in over 2,100 hospitals domestically. The Castor™ Branched Aortic Stent-Graft and Delivery System (“Castor™”) covers a cumulative number of more than 1,000 terminal hospitals; The Minos™ Abdominal Aortic Stent-Graft and Delivery System (“Minos™”) covers a cumulative number of more than 800 terminal hospitals; The Reewarm™ PTX Drug Coated Balloon PTA Catheter (“Reewarm™ PTX”) covers a cumulative number of more than 900 terminal hospitals; And the new products, Fontus™ Branched Stent Graft System in Surgical Operation and Talos™ Thoracic Aortic Stent-Graft System, have been available in a cumulative number of more than 300 terminal hospitals.

In terms of international business, guided by the strategy of accelerating globalization development, the Company further promoted the development of innovative products in the international market. During the Reporting Period, overseas sales revenue has increased by more than 55% compared to the corresponding period of previous year. The Company’s products obtained 17 new product registration certificates overseas, and have been introduced into clinical application in 9 new overseas countries. By the end of the Reporting Period, the Company’s overseas business has covered 31 countries in Europe, Latin America and the Asia Pacific region. Among them, Castor™ achieved the first implantation in Singapore and multiple European countries and it is available in 16 countries accumulatively; Minos™ achieved the first implantation in Turkey and other countries, and it is available in 19 countries cumulatively; Hercules™ Thoracic Stent-Graft System with Low-Profile Delivery System achieved the first implantation in Singapore and multiple European countries, and it is available in 21 countries cumulatively; Reewarm™ PTX Drug Coated Balloon achieved the first implantation in Brazil.

Over the past year, the Company explored the development path of customized medical devices for the first time at home and abroad, realizing the sale of products in a customized manner. The Company made its debut at Asian Society of Vascular Surgery (ASVS) and Vascular, Endovascular and Interventional Therapeutic Horizons Symposium (VEITH), and its subsidiary Endovastec US™ officially commenced operations. These developments have steadily increased the product competitiveness and brand influence of Endovastec™ both domestically and globally.

Strengthening Corporate Management, and Continuously Improving Comprehensive Brand Strength

In 2023, the Company also further strengthened all aspects of operation management, continuously made innovations, implemented energy-saving and consumption reduction, improved quality and efficiency, and created a win-win situation, and received awards and recognition from various parties, including the industry and the government. The Company continued to optimize its business processes and related internal controls in procurement, research and development, manufacturing and sales services, established and improved its internal management and organizational structure, and established a scientific decision-making, execution and supervision mechanism, so as to improve the overall management and operation level of the Company and facilitate the achievement of the Company's strategic objectives faster and better. During the Reporting Period, the Company won a number of honors and qualifications. It was recognized as a Chinese National-level Enterprise Technology Center and a Chinese National Technology Innovation Demonstration Enterprise, and was awarded the Most Valuable Enterprise for Investment on the Science and Technology Innovation Board in 2023, and the 2022 Award for Outstanding Contribution to Economy of Shanghai Pudong New Area. In addition, a number of R&D projects were recognized as a high-tech achievement transformation project in Shanghai, and a number of employees were honored with the title of Talent in Shanghai and Pudong New Area.

Dr. Zhu Qing, President of Endovastec™, stated, “In 2023, Endovastec™ has once again achieved excellent results, which is the result of the combined efforts of all the employees of Endovastec™. In 2024, we will act in accordance with prevailing trends and adapt to the changing times. We will continue to dedicate ourselves to the research & development, and innovation of total solutions to aortic & peripheral vascular and tumor diseases, bringing health and well-being to more patients with circulatory diseases around the world. Endovastec™ will also further accelerate its product diversification layout, speed up the pace of globalization, and continue to make unremitting efforts to realize our grand vision of ‘building a globally leading group of people centric enterprises of emerging medical technologies’!”