Hong Kong, August 22, 2021 – Sisram Medical Ltd (“Sisram”; stock code: 1696.HK; with its subsidiaries referred to as the “Group”), an operational holding company specializing in aesthetic medical technologies for wellness , today announced its unaudited interim results for the six-month period ended June 30, 2021 (the “Period”).
Revenue was US $ 125.2 million, up 74.7% year-on-year;
Gross margin amounted to US $ 71.48 million, up 79.1% year-on-year;
Gross profit margin increased from 55.6% year-on-year to 57.0% for the period;
Profit for the period attributable to owners of the parent company was US $ 16.38 million, up 197.6% year-on-year;
R&D investments increased 62.5% to US $ 8.05 million, from US $ 4.96 million year-on-year; 2 new products were launched – (i) ‘Alma Duo’ – Men’s wellness treatment platform launched in North America, for natural performance restoration; (ii) “Alma PrimeX”, a non-invasive body contouring and skin tightening platform launched globally;
The Group has entered into a sublicense agreement with Shanghai Fosun Pharmaceutical Industrial Development Co., Ltd. (“Fosun Industrial”) for the marketing of “RT002” Injectable
The Group acquired the entire share capital of Shanghai Foshion Medical System Co., Ltd. (“Foshion”) in order to further improve its dental business line.
Focus on R&D innovation and diversified business investments accompanied by global commercialization capabilities
During the COVID-19 pandemic, Sisram adhered to its long-term business strategy, using its financial resources to maintain operational resilience. This enabled the Group to pursue new business opportunities, preserve its sustainable growth and strengthen its global marketing network, recording total revenue of US $ 125.3 million for the period, an increase of 74 , 7% and adjusted net profit of US $ 19.6 million, representing an increase of 126.2% compared to the corresponding period in 2020.
During the period, Sisram further strengthened its direct sales activities in key territories, as the proportion of direct sales revenue increased from 54.2% to 59.7% year-on-year. The increase is attributed to continuous improvement in the quality of products and services, accompanied by investments in brand visibility deriving from brand preference among target customers. With effective supply chain control mechanisms, rapid response to changing market conditions, gross profit increased 79.1% to US $ 71.48 million from US $ 39.9 million and the gross profit margin increased to 57% for the period, from 55.6% year on year. based. The Group recorded an impressive 115.1% year-over-year revenue growth in North America, amounting to US $ 49.15 million. The Group further strengthened its commercial presence in the APAC market, with a turnover increase of 54.9%, amounting to US $ 33.7 million, mainly attributed to a strong commercial performance in China, Japan and Australia.
Sisram’s R&D investments increased 62.5% to US $ 8.05 million from US $ 5.0 million for the corresponding period. During the Period, the Group launched 2 new products, ‘Alma Duo’ and ‘Alma PrimeX’.
Pioneering digital transformation, focused on the diversity of companies and the methodology of glocalization
Sisram sees digital transformation as a future engine of growth. During the reporting period, Sisram invested US $ 1.22 million in upgrading the IT infrastructure. This significant ongoing investment dates back to early 2019 and is expected to continue. The implementation of the global ERP system in the subsidiaries, the initial implementation of the global CRM system and the full implementation of the global HR system are just a few IT projects carried out during the period.
Operationally, Sisram focused on combating the pandemic effect by (i) improving the visibility of incoming materials in response to declining supplier ‘on-time delivery’ performance (ii) by exercising options outbound logistics alternatives to cope with low airline availability and (iii) provide the required IT tools to enable employees to work from home, if required.
The new Alma campus operates according to the “LEAN” manufacturing methodology to ensure a smooth and efficient flow of materials.
Carry out the Group’s Global Wellness Ecosystem strategy
Adhering to the Group’s overall strategy in terms of the consumer well-being ecosystem, the Group embarked on several business development initiatives during the period, as follows:
On April 22, 2021, Sisram Tianjin, a wholly-owned subsidiary of the Group, Shanghai Fosun Pharmaceutical (Group) Co., Ltd. and Qianda (Tianjin) International Trading Co., Ltd. the entire issued share capital of Foshion in the amount of RMB 312 million (the “Foshion Acquisition”). Foshion is one of the leading digital dental equipment marketing platforms in Mainland China.
On July 14, 2021, Sisram Tianjin entered into a sublicence agreement with Fosun Industrial for the commercialization of an injectable pharmaceutical product containing DaxibotulinumtoxinA (“RT002”). The product is the first long-acting neuromodulator for the treatment of aesthetic indications.
On July 29, 2021, Alma, the operational subsidiary of the Group, exercised the purchase option by buying back the remaining 40% of the capital of Nova. Upon completion, Nova will become a wholly owned subsidiary of the Company.
Mr. Lior Dayan, CEO of Sisram and Alma, said: “During the first half of 2021, Sisram demonstrated its forward-thinking approach and resilient strategy, expanding its business lines globally in the mid of the pandemic with the establishment of new components of the ecosystem. such as dental and personal care. We will continue to follow our strategic ecosystem planning through organic growth, extensive investments and diversified cooperation, further strengthen our R&D capabilities, product portfolio and distribution channels, consolidate the core competitiveness of each business unit and provide customers with a great experience ‘.
For the future, Sisram intends to pursue its strategy of constructive innovation by evaluating and implementing innovative technologies, projects and synergies, in order to strengthen its global position. Throughout 2021, the Group will strategically focus on digitization, building brands and ecosystems and lean innovation. Sisram intends to expand its presence and activities in China through its subsidiary, Sisram Tianjin, and to leverage Fosun Pharma’s resources in China to gain greater market share.
Mr. Liu Yi, President and CEO of Sisram, said, “Sisram values R&D, lean operations and excellent service. We have achieved rapid development in terms of product portfolio and service diversification, expansion of global channels, as well as operational capacity, and have maintained strong competitiveness in the global market. As a central member of Fosun Pharma’s Med-Tech division, as well as a central platform of Fosun’s wellness ecosystem, we will continue to be customer-centric and focus on technology and l innovation under the rapid pace of development of the medical aesthetics industry. By improving our technology and clinical practices, we will provide our customers with world-class products and services, to promote the healthy and long-term development of the industry. ‘
About Sisram Medical Ltd
Sisram Medical Ltd (1696.HK) is the world’s leading provider of energy-based aesthetic, surgical and medical solutions. The company is majority owned by Fosun Pharma, a leading healthcare group in China. Sisram Medical went public successfully on September 19, 2017, as the first Israeli company listed on the Hong Kong Exchange Main Board. Sisram Medical’s main subsidiary, Alma, is one of the world’s leading providers of energy-based aesthetic surgical and medical solutions and is active in more than 90 countries and jurisdictions around the world. Sisram Medical’s flagship systems include (i) the “Soprano” family, primarily used for laser hair removal; (ii) the “Harmony” family, a versatile multi-application platform that can be used to treat over 65 different FDA approved indications; (iii) the “Accent” family, mainly used for body contouring and skin tightening; (iv) “FemiLift”, a minimally invasive treatment system for various female ailments; and (v) LipoFlow’s “BeautiFill” platform, the first and only energy-based device approved by the FDA for autologous fat transplantation. In addition, Sisram Medical has also entered the injectable market, with products available in Israel, Hong Kong and India.
Sisram Medical – Improving the quality of life
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