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HONG KONG, Apr 17, 2024 - (ACN Newswire) - China Isotope & Radiation Corporation (“CIRC” or the “Company” , together with its subsidiaries, the “Group”; Stock Code: 1763.HK) announces the audited consolidated financial statements of the Group for the year ended 31 December 2023 (“2023” or the “Reporting Period”).For the year ended 31 December 2023, the Group operated five business segments, namely pharmaceuticals, radioactive source products, irradiation, radiation therapy equipment and related services and other businesses. In 2023, the Group continued to intensify our market development efforts and achieved continued growth in economic efficiency. For the year of 2023, the Group recorded revenue of RMB6.635 billion, representing a year-on-year increase of 7.8%; gross profit was RMB3,482.2 million, gross margin was 52.5%; realized net profit of RMB776.1 million, representing a year-on-year increase of 2.8%, with net profit attributable to the parent company achieving RMB371.0 million.Pharmaceutical segment: Magnificent development in existing industries and businesses with steady expansion of industry influenceIn 2023, in respect of pharmaceutical segment, the Group provided a stable supply of radiopharmaceuticals to domestic medical institutions and strengthened the promotion of nuclear medicine diagnosis and treatment technology to clinical departments and other market development work, while continuously promoting development in existing industries and businesses. Through academic conferences and other means, the Group conducted scientific popularization for the general public and nuclear medicine clients on new products such as “therapeutic sodium iodine-131 capsule” and scientific radionuclide, enhancing its influence in the field of nuclear medicine. In December 2023, therapeutic sodium iodine-131 capsule manufactured by HTA Co., Ltd., a subsidiary of the Group, has successfully entered the National Drug List for Basic Medical Insurance, Work-Related Injury Insurance and Maternity Insurance (2023) as a drug covered by the national medical insurance negotiations.During the Reporting Period, the Group recorded RMB4,128.6 million in revenue from sales of pharmaceuticals, representing a year-on-year increase of 5.2%, accounting for 62.2% of the total revenue, recorded RMB1,682.8 million in revenue from imaging diagnostic and therapeutic radiopharmaceuticals, representing a year-on-year increase of 15.3%, and recorded RMB2,323.8 million in revenue from breath test.Radioactive source products business: Successfully providing service for the Shenzhou XV manned spacecraft and remaining a high market shareIn 2023, the supporting radioactive source developed by the Group for the Shenzhou XV manned spacecraft performed satisfactorily during the mission by ensuring accurate ignition command of the thrust reverser engine by the Y-altitude control device and safe and soft landing of the returning capsule, thereby guaranteeing the successful completion of Shenzhou XV manned mission. The technology of reusing retired radioactive source has made outstanding contributions in the field of applied research on circular economy, and won the First Prize of Sichuan Province Low Carbon Science and Technology Award. During the Reporting Period, a new type of domestically produced krypton [85kr] thickness gauge sources was officially launched into the market.During the Reporting Period, the Group recorded RMB586.2 million in revenue from radioactive source products, representing a year-on-year increase of 0.9%. Gamma knife source and non-destructive testing radioactive source remained a stable and high market share, achieving growth in revenue, of which, gamma knife source realized operating revenue of RMB73 million and non-destructive testing radioactive source realized operating revenue of RMB89 million.Irradiation business: Continuously innovating the mode of cooperation and sales revenue of new products reaching a record highIn 2023, the Company made innovation in the mode of cooperation and made deep-seated efforts to lay out its business in and explore EB curing industry, resulting in completion of technique and production line of EB plates, while arranging for EB color-coated plates and EB film so as to build EB curing industrial ecosystem. BINE High-Tech Co., Ltd., a subsidiary of the Group, successfully completed the after-sales maintenance for the 4 million curies BFT gamma irradiation equipment of Grand Ten Holdings in Malaysia, which is the first export project of BINE High-Tech Co., Ltd. and has maintained safe operation for 10 years without any incident.During the Reporting Period, the Group actively explored the irradiation product market, with sales revenue of new irradiation products soaring to over RMB28.5 million, reaching a record high. The Group recorded RMB170.8 million in revenue from irradiation-related business.Radiation therapy equipment and related services: Accelerating domestic manufacturing process of high-end radiotherapy equipment and the first product has successfully obtained approvalIn 2023, the Group accelerated domestic manufacturing process of high-end radiotherapy equipment. On 28 September 2023, CNNC Accuray (Tianjin) Medical Technology Co., Ltd. (“CNNC Accuray”), a subsidiary of the Group, successfully obtained the medical device registration certificate issued by the National Medical Products Administration for its domestic high-end spiral tomotherapy system (TOMO C). This product has become the first domestic spiral tomotherapy product in the high-end medical field in China. The official mass production launch event and investor exchange meeting of TOMO C was held in Tianjin on 25 October.In addition, CNHE-MDR, the outcome of the mobile digital medical X-ray photography system research and development project, was approved in June 2023 and obtained the medical device registration certificate. The Smart Cobalt-60-based Cone Beam Focused Stereotactic Therapy System project has completed the product type testing and entered the clinical trial stage smoothly. The SPECT/CT project has passed the general inspection and acceptance of the State Administration of Science, Technology and Industry for National Defence, with an acceptance rating of “excellent”.During the Reporting Period, the Group recorded RMB933.7 million in revenue from nuclear medical equipment and related services, representing a year-on-year increase of 27.5%, and accounting for 14.1% of total revenue, making it the second largest source of revenue.International business: Gradually deepening the global presence and making breakthroughs in a number of businessesDuring the Reporting Period, the Group robustly explored the international market and exported breath test kits, radioimmunity kits, radiopharmaceuticals dispensing equipment, medical equipment and devices as well as other products to dozens of countries and regions such as Indonesia, Brazil, Peru, Colombia, Ecuador, India, Bangladesh, Singapore and Vietnam, realizing a total export revenue of RMB430 million. International business revenue from regular medical products maintained significant growth in 2023.Marketing: Promoting brand building in an orderly manner and fully utilizing the value of the IAEA platformDuring the Reporting Period, the Group deepened its brand building efforts. In May 2023, the Group successfully organized the “Sichuan Medical Isotopes and Radiopharmaceutical Industry Development Promotion Summit” in conjunction with eight departments in Sichuan Province. In September 2023, the Group contributed to and participated in the Conference on the High-quality Development of the Nuclear Technology Application Industry, the 2nd China-ASEAN Forum for Peaceful Use of Nuclear Technology, and etc. where the Group launched cooperation demonstration projects, signed business cooperation documents, and displayed nuclear medical equipment and digital exhibits for nuclear medicine. The Group participated in the Academic Annual Conference of the Nuclear Medicine Branch of the Chinese Medical Association in 2023 to launch the Radiant Intelligence 1.0 Intelligent Nuclear Medicine System, and co-hosted the 2nd International Forum on the Development of Nuclear Technology Application Industry in October 2023, fully demonstrating the CIRC’s leadership in nuclear technology application industry.Furthermore, the Group has been actively leveraging the value of the IAEA Collaboration Center platform to enhance its international influence. In August 2023, the Group hosted the “International Training Course on Radiopharmaceuticals Preparation for the Asia-Pacific Region” in the name of the IAEA Collaboration Center for Radiopharmaceuticals and Radioactive Sources. The Group has persisted in reform of its marketing center to foster the synergistic, high-quality and safe development of its business in radiopharmaceuticals, radioactive sources and radioactive particles. In respect of the marketing of domestic nuclides, internal resources were coordinated and integrated for production, sales, distribution and services of domestic Lu-177 and Ge/Ga generators, laying the foundation for market development after reaching design capacity thereof in 2024.Scientific research and innovation: Multiple projects conducting clinical trial and work related to intellectual properties gaining significant progressThe Group has always actively conducted research and development work on various types of imaging diagnosis and therapeutic pharmaceuticals to fill gaps in various fields of medical treatment and meet the medical needs of China. As of 31 December 2023, the Group had a number of imaging diagnosis and therapeutic radiopharmaceuticals under research and development. Among them, sodium fluorine injection has completed clinical trials and was submitted for new drug application; iodine-MIBG injection was in Phase III clinical trial; technetium sulfide colloidal injection, Ga-Dotatate injection, fluorine betazine injection, fluorine stamine injection, fluorine-L dopa injection and lutetium oxyoctreotide injection were approved for the clinical trial, and a variety of imaging diagnosis and therapeutic radiopharmaceuticals were in preclinical research and development stage.During the Reporting Period, the Group yielded remarkable results in the work related to intellectual properties, with a total of 298 patents applied, 240 patent authorizations obtained, including 5 foreign design patent authorizations. As of 31 December 2023, the Group had 945 active licensed patents, among which there were 149 invention patents, sustaining and enhancing its technological strength. the Company had 11 registered trademarks, 38 registered copyrights, 1 national standard, 1 energy industry standard and 6 group standards issued, and 1 national standard, 1 agricultural industry standard, 4 nuclear industry standards and 12 group standards under preparation/to be released.In terms of technological awards and honors, during the Reporting Period, the Group won 1 provincial and ministerial technology award, 4 social science and technology awards, 1 group-level science and technology award, and 3 awards in the CNNC Science and Innovation Competition.OutlookLooking ahead, CIRC will give full play to the unique advantages of nuclear medicine in the diagnosis and treatment of major diseases such as neurodegenerative diseases, cardiovascular and cerebrovascular diseases and malignant tumors, and provide quality products, services and integrated solutions to better protect people’s lives and health and facilitate the construction of “Healthy China”.In 2024, the Company will firmly grasp the development opportunities, spare no effort, to maintain a good growth momentum, make every effort to drive the economic performance to a record high and practically improve the innovation and value creation capabilities, continuously strengthen the core functions and enhance the core competitiveness, and perform the three major roles of scientific and technological innovation, industry control, and safety support, in order to accomplish the planning objectives and tasks and accelerate the establishment of an internationally renowned isotope and radiation technology application products and services supply group.About China Isotope & Radiation CorporationChina Isotope & Radiation Corporation (referred as “CIRC” or “the Company”) since its establishment in 1983, has been dedicated to exploring and developing nuclear technology applications. Boasting over 40 years of industry experience, the Company has emerged as a prominent leader in the domestic nuclear technology industry. The Group is primarily engaged in the research, development, manufacturing and sale of diagnostic and therapeutic radio pharmaceuticals and radioactive source products for medical and industrial applications, the provision of irradiation service for sterilization purpose and engineering, procurement and construction (“EPC”) service for the design, manufacturing and installation of gamma ray irradiation facilities and the provision of nuclear medical equipment and services such as independent clinical laboratory services to hospitals and other medical institutions.The nuclear medicine industry is an industry with immense potential, demanding threshold, and high returns. As a leader in China’s nuclear medicine industry, CIRC is the largest domestic manufacturer of imaging diagnostic and therapeutic radiopharmaceuticals, UBT diagnostic kits and test analyzers, as well as radioimmunity analysis kits. In field of radioactive source products, it is the only core enterprise in the field of radioactive source research and application that has industrialized and scaled research and production capabilities. In field of radiation, it is the third largest radiation processing service provider in China, and the only supplier in China that provides upstream production and downstream design and installation services for radiation equipment. And two of its subsidiaries have been approved by the Ministry of Ecology and Environment of the People’s Republic of China as two of the three EPC service providers authorized to engage in the design, manufacturing, and installation of radiation equipment.


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