with Adjusted Net Profit of $25.3 Million; Achieving its 4th Consecutive Year of Solid Earnings
HONG KONG — Sisram Medical Ltd (“Sisram Med” or the “Company”; stock code: 1696.HK), a leading global provider of energy-based medical aesthetic treatment systems, today announced its audited consolidated annual results for the 12 months ended 31th December 2017 (“the year”).
2017 was a pivotal year in the Company’s history. Sisram Med became a publicly-traded company in September 2017 and is the first Israeli company to be listed on the Hong Kong Stock Exchange Main Board. The Company accelerated its transformation into a higher-margin business focused on value-creating, obtaining the best results in the history of the company while achieving a 16% revenue increase YOY with sales volume of $136.9 million in 2017 and adjusted net profit of $25.3 million.
Sisram Med experienced global growth of 21% in YOY revenues for its minimally-invasive platforms – 128% YOY growth in China, and over 150% YOY growth in India for this product line. During the year, the Company had significant collaboration with tier-one aesthetic firms in APAC, sustaining the leading position in the region and resulting in 27% YOY growth comprised of 121% YOY revenue growth in Hong-Kong and 38% revenue growth from the Indian subsidiary. In North America, the Company achieved revenue growth of 8% YOY and significantly expanded its North American salesforce and product offerings during the latter part of the year. EMEA revenues increased 13% YOY, primarily as a result of strong revenue growth in Poland, Spain, and the UK as well as from the DACH subsidiary, each of which maintained significant YOY revenue growth of at least 20%.
A significant portion of the Company’s overall financial results can be attributed to its research and development efforts. R&D investment got big increase, as it continues to focus on new and innovative product offerings. Sisram Med is amongst the few companies to preform in-house organic research, development and manufacturing of multiple energy-based technologies including Laser, Radio Frequency, Light, Ultrasound and Plasma. This unique competitive edge enables the Company to quickly introduce wide variety of products, including both stand-alone and combined technologies to the market. In 2017, Sisram Med has allocated significant research, development and clinical efforts toward developing and testing new minimally-invasive treatments for surgical indications that the Company intends to launch in 2018.
In 2017, Sisram Med implemented a soft launch of Alma Smart Clinic, an Internet of Things (“IoT”) platform, which is a cloud-based data center and remote-control service. In addition, the Company planned and executed a Direct to Customer (“DTC”) strategy focused on strengthening its digital marketing tools and building a new distribution model. The goal of this strategy is to build bottom-up demand and strengthen brand awareness.
Mr. Yi Liu, Chairman and Executive Director of Sisram Medical Ltd, said, “Considering our accomplishments in 2017, our robust balance sheet, strong financial capability, solid funding channels and flexibility to fund our investments and operational commitments, I believe we are at an excellent position from which to continue our journey forward. Looking into the year of 2018, Sisram Med will continue to extend and deepen its value proposition, adhering its philosophy of ‘Enhancing Quality of Life’, delivering business results in the present, while creating value and opportunities for the future benefit of our shareholders, customers, suppliers and partners.”