Vincent Medical Holdings Limited (“Vincent Medical” or the “Company”, together with its subsidiaries, the “Group”, stock code: 1612), a global medical devices and solutions provider, is pleased to announce its annual results for the year ended 31 December 2024 (“the Year”).
Total revenue for the Year increased by 11.6% to HK$801.0 million (2023: HK$718.0 million), primarily attributable to the increase in orders from the imaging disposable products segment, and the increasing contribution from healthcare and wellness products. In line with revenue growth, gross profit increased by 8.2% to HK$260.0 million (2023: HK$240.4 million), whereas gross profit margin declined slightly from 33.5% to 32.5% as a result of changes in product mix and the increase in allowance for inventories. Supported by improving cost control, the Group recorded a profit attributable to owners of the Company of HK$69.2 million for the Year (2023: HK$57.3 million).
In view of the Group’s resilient performance, the Board has resolved to declare a final dividend of HK1.70 cents (2023: HK1.50 cents) per share for the Year. Together with the interim dividend of HK1.60 cents (2023: HK1.25 cents) per share, total dividend for 2024 reached HK3.30 cents (2023: HK2.75 cents) per share, which is in line with the dividend policy of the Company.
Imaging Disposable Products Segment
Attributable to the growing demand for early disease detection and technological advancements in imaging modalities, demand for medical diagnostic imaging services, along with diagnostic imaging disposables continued to increase in 2024. Facing an expanding market, the Group continued to foster a strong partnership with its key customer, and has successfully secured orders on new products and initiated new projects. Revenue from the imaging disposable products segment reached HK$393.3 million for the Year, representing a 37.7% increase from HK$285.6 million in 2023, accounting for 49.1% of the Group’s total revenue.
Respiratory products segment
The respiratory products segment remains an integral part of the Group’s product offering. However, due to weak global demand, the exit of certain key players from the sleep and mechanical ventilation market, as well as the absence of a respiratory disease outbreak in the PRC that was seen in early 2023, total revenue from the respiratory products segment decreased by 10.7% to HK$245.5 million (2023: HK$274.9 million), accounting for 30.6% of the Group’s total revenue. The decrease was mainly due to the drop in revenue from its inspiredTM respiratory products, reporting a 20.2% decrease in sales to HK$161.6 million, partially offset by the increase in sales of OEM respiratory products.
Orthopaedic and Rehabilitation Products Segment
As a result of growing macro uncertainties, certain customers in the U.S. have also reshuffled their supply chain, strategically reducing their orders from overseas, thus putting pressure on the Group’s orthopaedic and rehabilitation products segment. During the Year, segment revenue reported a decrease of 14.4% from HK$58.7 million to HK$50.2 million, representing 6.3% of the Group’s total revenue.
Other Products Segment
Leveraging the Group’s product innovation and manufacturing excellence, the Group continued to pursue a diversified strategy to capitalise on emerging market opportunities. Since 2023, the Group has extended its product offering to a broader range of medical devices and disposables, and healthcare and wellness products. In 2024, revenue from other products segment increased by 13.2% from HK$98.8 million to HK$111.9 million, accounting for 14.0% of the Group’s total revenue.
Digitalisation, Automation and Operations Optimisation Initiatives
During the Year, the Group adopted and upgraded various business management systems, including the ERP System, product lifecycle management system, and the manufacturing execution system, in an attempt to streamline its workflow and improve its operational efficiency, as well as to prepare for the advanced manufacturing operation of its new R&D and production facility in Kaiping City, Jiangmen City, Guangdong Province, the PRC. With construction progress proceeding according to schedule, the trial operation is expected by the end of 2025.
In addition, the Group also continued to pursue and invest in product quality control and regulatory and commercial compliance. During the Year, the Group obtained the European Union Medical Device Regulation (“EU MDR”) certification for its quality management system and various respiratory disposables series and device and passed a comprehensive review conducted by the Food and Drug Administration of the U.S., along with various on-site spot checks by the National Medical Products Administration of the PRC (the “NMPA”), highlighting its commitment to quality and regulatory compliance.
Outlook
Looking ahead, uncertainties remain particularly given the dynamic macro environment. In order to navigate the turbulent market, the Group will maintain its diversified growth strategy by putting imaging disposable products and respiratory products at its core. While focusing on strengthening cooperation with business partners and creating more value for customers, the Group will also explore other business opportunities that can leverage its technical expertise and manufacturing excellence.
Mr. Choi Man Shing, Chairman of Vincent Medical, said, “Despite macro headwinds, we continued to expect resilient demand for medical device and solutions. Although the market may undergo consolidation, but long-term demand remains. We will pay close attention to market developments, and will prioritize rigorous cash flow management, stringent cost controls, and optimized operational efficiency to yield maximum margins. We will also carefully manage our debt level to maintain healthy financial position.”
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