Adjusted Net Profit Increased by 30.6% to US$13.3 Million
HONG KONG, Sep 29, 2017 - (ACN Newswire) - Sisram Medical Ltd ("Sisram Med" or the "Company"; stock code: 1696.HK), a leading global provider of energy-based medical aesthetic treatment systems, listed on the Main Board of The Stock Exchange of Hong Kong Limited on September 19, 2017, became the first Israeli company to list in Hong Kong, marking a key milestone in the business development of the Group. Sisram Med yesterday announced its unaudited interim results for the six months ended June 30th, 2017 ("Period").
During the first half of 2017, the Company continued to promote its various brands, increase market awareness and sales of its products as well as expand existing sales and distribution channels. At the same time, the Company continued to satisfy the evolving demands of treatment providers and treatment recipients by launching innovative products driven by our strengths in research and development. Benefitting from the launch of four new applicators and bolstered by the increased awareness and acceptance of medical aesthetic treatments, Sisram Med's business operations continued to perform well.
Helped greatly by growing revenues from sales of non-invasive medical aesthetic products, revenue from product sales during the period amounted to US$61.6 million, an increase of 14.8% compared to the corresponding period of 2016. Revenue from services and other amounted to US$4.7 million. The overall revenues of the Company increased by 12.9% compared to the corresponding period of 2016, reaching US$66.3 million. Due to steady business growth and further sales structure optimisation, the Company recorded adjusted net profits of US$13.3 million, which was a sharp increase of 30.6%. The adjusted net profit margin was 20.1%, a rise of 16.2%. During the period, the profitability and operational quality of the Company further improved. The net cash flow from operating activities amounted to US$9.3 million, an increase of 42.4% compared to the corresponding period of 2016.
The Company's products are categorised into non-invasive medical aesthetic products and minimally invasive products. Substantially all Sisram Med products are energy-based medical aesthetic treatment systems and ancillary products for use with the Company's treatment systems. The Company sells treatment systems in approximately 80 countries and jurisdictions worldwide and maintains a lean and efficient direct sales team and structure. which allows for more effective sales and marketing efforts. In the United States, Canada, Germany, Austria and India, the Company engages in direct sales to treatment providers. In other geographic markets, including the PRC and the rest of the Asia Pacific region, EMEA and Latin America, the Company sells products to distributors, who in turn sell to treatment providers.
Looking ahead in the second half of 2017, the Company is poised to expand its sales channels in the United States, Germany, and India as well as its distribution networks globally. Moreover, the Company intends to upgrade existing facilities or establish new service centres for its direct sales markets in India and Germany.
The Company boasts strong R&D capabilities that are focused on meeting the specific needs of treatment providers, using a systematic and user-oriented approach. During the period, the Company continued to focus on R&D activities with R&D expenses increasing by 38.4% to US$4.8 million from US$3.5 million during the corresponding period of 2016. R&D expenses primarily comprise remuneration to research and development team members, materials costs, and expenses related to regulatory compliance as well as registration of patents and trademarks. In the second half of 2017, Sisram Med will continue to focus on innovation and development, and strive to develop new strategic products. The Company also intends to develop greater analytical capabilities using cloud technology in its treatment systems which are linked to its information technology system. At the same time, the Company also intends to upgrade and remap its production lines to, among other things, enhance efficiency and increase throughput as well as strengthen its capabilities in developing and producing more advanced products as the latest technologies evolve.
Mr. Yi Liu, the Chairman and Executive Director, said, "Following our successful listing, we at Sisram Med expect to enhance our brand and business development across the PRC as well as attract new investors seeking investment opportunities in the medical devices sector. We feel that this will accelerate our development overall." Looking forward, Mr Liu added, "the Group will continue to remain committed to its mission of providing cost-effective and high-performance systems based on the very latest clinical research and cutting-edge technologies. To this end, we will also stay true to our corporate philosophy of "Enhancing Quality of Life", and will endeavor to capture new opportunities that arise across expanding aesthetic and surgical markets, this will help us focus on developing strategies for organic growth, external expansion and integrated development, and will also bolster our efforts to acquire and integrate with other domestic and overseas quality aesthetic and surgical manufacturing companies. The Group also aims to further enhance its core competencies to improve overall operating results."
About Sisram Medical Ltd
Sisram Medical Ltd (stock code: 1696.HK) is a leading global provider of energy-based medical aesthetic treatment systems, with comprehensive in-house capability to design, develop and produce such systems, which often feature the Company's innovative and proprietary technologies. "Alma" brand, as well as the brands of many of the Company's products such as "Soprano", "Harmony", "Accent" and "FemiLift", are widely recognized and well regarded among treatment providers and treatment recipients internationally. The Company has also been the largest provider of energy-based medical aesthetic treatment systems in the PRC market and one of the leaders in the medical aesthetic treatment system market globally, in terms of revenue in 2016, according to the Medical Insight Report. The company sells its treatment systems in approximately 80 countries and jurisdictions worldwide. Sisram Med, incorporated in 2013 in Israel, is a non-wholly owned subsidiary of Fosun Pharma. Fosun Pharma is a leading healthcare group in China with businesses covering the whole healthcare industry chain.
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