Lepu Medical Technology (Beijing) Co., Ltd.

Climate Impact & Sustainability Data (2022, 2023, 2024-01 to 2024-06, 2024-07 to 2024-09)

Some hospital businesses were affected to some extent due to COVID-19.
The medical device sector experienced a significant drop in traditional metal drug stents business due to centralized volume-based procurement.

The company adhered to development strategies of "innovation, consumption, internationalization, integration, efficiency improvement and steady development" to resist price risks.
The company invested in and iteratively optimized its R&D line to ensure long-term competitiveness.
The company horizontally copied its market-oriented competitive advantage to other sub-sectors to quickly increase market share before the arrival of volume-based procurement.
The company's large-scale production ensured cost control after products entered volume-based procurement.

Decrease in operating income and net cash flow from operating activities due to reduced contribution from COVID-19 detection reagent products.

Systematically tested goodwill and other specific assets for impairment, resulting in impairment loss of RMB 147.9586 million and impact on net profit of RMB 126.2929 million. Provision for impairment of epidemic product inventory of RMB 114.5067 million.

Invested CNY 1,380,000 (Lepu Pharmaceuticals Co., Ltd.), CNY 9,960,000 (Zhejiang Lepu Pharmaceuticals Co., Ltd.), and CNY 115,157.22 (Lepu Pharmaceutical (Beijing) Co., Ltd.) in environmental governance and protection in the first half of 2024.
Paid environmental protection tax of CNY 11,723.6 (Lepu Pharmaceuticals Co., Ltd.), CNY 663 (Zhejiang Lepu Pharmaceuticals Co., Ltd.), and CNY 3,939.24 (Lepu Pharmaceutical (Beijing) Co., Ltd.) in the first half of 2024.

Launched "Lepu Ventura AI", an AI orthokeratology lens intelligent evaluation system to address the shortage of optometrists in China.

The company is in compliance with the corporate governance requirements applicable to it as a PRC public company listed on the Shenzhen Stock Exchange in all material aspects.

Aging product line in the preparation business due to backward internal R&D after core products entered national centralized purchasing.
Fierce market competition and price differences with competing products in the pharmaceutical sector.
Reduced purchasing willingness in the physical pharmacy industry due to policy impacts.
Channel goods phenomenon and decline in product bargaining power affecting net sales.
Decline in demand for household-related medical device products for vital indication monitoring at home and abroad in the post-epidemic era.

Sales strategy adjustment to win time.
Increased investment in R&D, including adding a dermatological injection R&D line in 2022 and investing in Shanghai Minwei Biotechnology in 2023.
Distinguishing specifications of online and offline channels in and out of hospitals.
Changing business requirements from continuous revenue increase to stable profitability in the medical care solutions segment.

Large expenses incurred from personnel reset and business reengineering put pressure on cost control.
Continuous increase in research and development expenses due to progress in research and development at Shanghai Minwei Biotechnology.