Basecare Medical Announces 2022 Interim Results ,Create assisted reproduction scene solutions
August 29,2022 · Suzhou
Suzhou Basecare Medical Corporation Limited, together with its subsidiaries, officially announced the unaudited consolidated interim results for the six months ended June 30, 2022.

(Hong Kong, August29, 2022) Suzhou Basecare Medical Corporation Limited (“Basecare Medical” orthe “Company”, together with its subsidiaries, the “Group”, stock code: 2170),an innovative platform of genetic testing solutions for assisted reproductionin China, officially announced the unaudited consolidated interim results forthe six months ended June 30, 2022 (the “Reporting Period”).

During the Reporting Period, the Group recorded revenue of RMB68.6million, a year-on-year increase of 36.7% compared to H1 2021. This increasewas primarily driven by the revenue related to PGT laboratory increased by53.4% from RMB26.6 million to RMB40.8 million, and the revenue increased fromnil to RMB354,000 related to the male-focused laboratory, mainly contributableto the sales of the flow cytometer. The gross profit margin was outstandingduring the Reporting Period. The gross profit of the Group increased by 36.0%to RMB30.2 million for the six months ended June 30, 2022, with a gross profitmargin of 67.9% from PGT-A. Basecare Medical has transformed from a singleproduct company to a comprehensive scenario solutions provider in the assistedreproduction industry, providing multi-scenario solutions including PGTlaboratory-related solutions, male-focused laboratory-related solutions, andcryopreservation room-related solutions.Through a parallelbusiness model consisting of both R&D and marketing, Basecare Medical hasbuilt a closed-loop business chain based on actual clinical needs, providing custom-madescenario solutions for customers, resulting in better customer satisfaction.

Focus on technological innovation to satisfythe evolving needs of the assisted reproductive market

By adhering to the “well-crafted product” concept, Basecare Medical’sR&D expenses increased significantly by 99.5% year-on-year to RMB45.5million during the Reporting Period. Basecare Medical has established acomplete series of testing kits in the pipeline of genetic testing kits, whichis based on next-generation sequencing (NGS) technology. Meanwhile, the PGT-Akit from Basecare Medical is China’s first third-generation IVF genetic testingkit approved by the National Medical Products Administration (NMPA). The salesrevenue of PGT-A kits was RMB16.4 million, with a gross profit margin of 67.9%.Meanwhile, the other two PGT products, PGT-M and PGT-SR kits, are also underdevelopment. The PGT-M kit is the first and only product of its kind in Chinathat has completed the registration test, and the PGT-SR kit is the world'sfirst original technology to achieve effective testing of chromosomal balancedtranslocations through the high-throughput sequencing platform, which obtainedthe national invention patent technology and may become the first standardizedcommercial product in this series of products in China with the potential for massclinical application. After the PGT-M and PGT-SR kits are approved forregistration by the NMPA, respectively, Basecare Medical expects to furtherconsolidate its dominant position in the third-generation IVF genetic test kitmarket in China, well ahead of the Company’s competitors in the potentialcompetition.

Beyond test kits, Basecare Medical has developed a number of innovative devicesand instruments that can improve workflow in molecular genetic laboratoriesusing its kits, as well as the industrial chain layout of embryocryopreservation equipment, and has provided intelligent and automatedintegrated solutions for clinical trials to improve the Company’scompetitiveness.

R&Dand marketing develop synergistically, the commercialization process shows asteady upward trend

Although a significant portion of products was directly sold tohospitals and testing institutions, Basecare Medical also sold testing kits todistributors, who in turn sold the Company’s products to hospitals. With an outstandingmarketing team, Basecare Medical provides services to key customers such as third-generationIVF licensed hospitals and testing institutions, which are a major component ofthe Company’s customers. The Company's marketing team is also responsible forpromoting products to hospitals through academic marketing activities and interactionswith KOLs and other industry professionals. At present, Basecare Medical has collaboratedwith over 200 medical institutions across the PRC, including 60 leadingreproductive centers.

With the first NMPA-approved PGT kit in China, Basecare Medical enjoysfirst-mover advantages in building and solidifying its sales channels andcustomer base. Basecare Medical plans to focus its commercialization strategyon key hospitals. The Company will increase the coverage and penetration ofhospitals licensed to conduct PGT and develop stronger relationships with themto enhance customer stickiness and lay the foundation to offer other productsto them in the future. Moreover, Basecare Medical plans to expand the share ofwallet in these hospitals by offering comprehensive solutions, as well asoffering new products for meeting other medical needs in these institutions.

Occupythe full reproductive cycle and be a leading global medical technology company

To accomplish the vision of becoming a leading globalmedical technology company, Basecare Medical will continue tocapture andsolidify PGT-A’s sales channels and maintain the established customerrelationships while accelerating the clinical registration process of PGT-M andPGT-SR kits, to rapidly establish a comprehensive product pipeline of thethird-generation assisted reproduction to occupy the full reproductive cycle. Regardingthe instrument pipeline, Basecare Medical intends to develop automated andintelligent hardware to upgrade the industry infrastructure and maintaintechnological leadership by leveraging the advancements of global leaders.

It is expected that a peak in the approval and delivery of the Company’sproducts and pipeline will be achieved in the coming two to three years.Basecare Medical will satisfy the evolving needs of the assisted reproductivemarket, further develop scenario solutions in assisted reproduction to betterserve the infertile and eugenic public, and create more value for customers.


AboutSuzhou Basecare Medical Corporation Limited

SuzhouBasecare Medical Corporation Limited is a third-generation IVF clinical solutionprovider in China and the first listed IVD company in the field of assistedreproduction (stock code: 2170.HK). It is committed to the product R&D andclinical application of gene technology in the field of reproductive health.Basecare Medical has been adhering to the “well-crafted product” concept,adhering to the industrialization road of independent R&D and localizationsubstitution, and has built multi-scenario solutions for assisted reproductioncovering PGT laboratories, andrology laboratories, and frozen storage rooms.The PGT-A (pre-implantation chromosome aneuploidy testing) kit, a class IIImedical device product independently developed by the company, has won China'sfirst "special approval for innovative medical devices", filling theclinical gap of third-generation IVF genetic testing kits in China.