YHLO Biotech reported revenue of 3.129 billion in the first three quarters

In the evening of October 28, YHLO released its 2022 third quarterly report, the company achieved revenue of CNY 3.129 billion in the first three quarters of 2022, an increase of 265.06% year-on-year; achieved net profit attributable to shareholders of the listed company of CNY 873 million, an increase of 463.55% year-on-year; achieved net profit attributable to shareholders of the listed company of CNY 822 million. The year-on-year increase was 483.30%.

From January to September 2022, the Company's non-Xin Guan self-produced products business and the new Guan products business both made efforts to drive high growth. The non-Covid-19 self-produced products business achieved sales revenue of CNY 620,657,100, up 22.76% year-on-year; among which, non-Covid-19 chemiluminescent products in the domestic region achieved sales revenue of CNY 481,965,200, up 31.55% year-on-year. Meanwhile, Covid-19 business benefited from the sales surge in overseas markets. In addition to the sales growth of Covid-19 antigen test kits, the Company achieved sales of both the newly launched novel coronavirus (2019-nCoV) and influenza A/B virus antigen test kits (colloidal gold method) in the third quarter, contributing a total sales revenue of CNY 226,386.31 million to the Company, representing a year-on-year increase of 2, 556.96%.

As one of the leading chemiluminescence brands in China, YHLO has a cumulative installed capacity of over 6,000 chemiluminescence instruments and has shipped 41 assembly lines. The company is also continuously optimizing its pipeline to steadily increase the installed capacity, adding more than 1,450 chemiluminescent instruments from January to September 2022, an increase of 45% year-on-year. The company's core products have been widely recognized in the market, with its main products covering more than 4,170 domestic end-user medical institutions and more than 980 tertiary care hospitals.

In 2022, the company accelerated the layout of its R&D strategy and gained new breakthroughs in registration and certification. In the first half of the year, the company received the IVDR CE extension certificate issued by BSI Group The Netherlands B.V. The extension certificate covers 58 light-emitting items products. Up to now, the company has completed IVDR CE certification for 72 products in total, including reproduction, cardiac, infection, self immunization, swelling label and other testing fields. In addition, the growth hormone assay kit (chemiluminescence method) developed by YHLO has recently obtained the medical device registration certificate approved by Guangdong Drug Administration, so far the company has 140 chemiluminescent reagents to obtain the domestic registration certificate.

At the same time, the company's standardized laboratory successfully passed the accreditation review of China National Accreditation Service for Conformity Assessment (CNAS) and was formally awarded the laboratory accreditation certificate, while the company was evaluated to be the first batch of medical device only marking demonstration units in Guangdong Province.

Recently, YHLO announced the acquisition of 52.64% equity interest in Bointe, a veteran biochemical company. After the completion of the acquisition, YHLO will integrate biochemical reagent brands and formally enter into the biochemical diagnostic field. This acquisition will enable YHLO to have a more mature biochemical reagent product line, forming a complete biochemical business "instrument + reagent" layout, which not only strengthens the company's biochemical immune pipeline independent capabilities, but also is an important step in providing comprehensive laboratory intelligence solutions for customers.

Analysts at Guolian Securities pointed out that the domestic chemiluminescence market size is expected to approach CNY 40 billion in 2022, which is the largest segment of medical devices, and the industry compound growth rate reached 18.95% in 2016-2021. With the impact of the epidemic ringing improvement, chemiluminescence will lead the rapid growth of the IVD segment. YHLO is expected to grasp the industry opportunities and continuously consolidate its core competitiveness to further achieve long-term stable growth in performance.