Airdoc Technology 2024 Interim Results: Solid Growth in Revenue and Gross Profit

     On August 28, Airdoc Technology (2251.HK) announced its 2024 interim results, demonstrating continued solid growth.

In the first half of 2024, Airdoc Technology achieved revenue of RMB93.71 million, a year-on-year increase of 13.6%. Gross profit reached RMB53.76 million, with a gross profit margin of 57.4%. The Company achieved steady growth in both revenue and gross profit, further consolidating its leading position in the industry.

As a global leader and pioneer in the field of retinal imaging AI technology, the Company has further enhanced the coverage and effectiveness of its health management services by continuously promoting the in-depth application of AI technology during the reporting period.

Diversified strategies yield results, business growth accelerates steadily

The Company has focused on its core business to achieve sustainable growth while promoting its diversified strategies. During the reporting period,the company's business covered three major segments: Airdoc Medical, Airdoc Health, and Airdoc Eye Health. Airdoc Medical and Airdoc Eye Health achieved revenue growth of 22.1% and 22.7% respectively.

The significant increase in the number of customers and service sites has driven the expansion of the overall business. In the first half of the year, the number of customers increased to 418 and the number of active service sites increased to 5,950, representing a 78.63% increase year-on-year. The Company served 2.96 million people through its SaMD and health risk assessment solutions, identifying 15,842 significant positive cases, with a cumulative total of more than 70,000 significant positive cases identified, making a significant contribution to the early detection and treatment of major diseases.

The Company has further enhanced the accessibility of healthcare services through the widespread application of Airdoc-AIFUNDUS (1.0). The number of active service sites covered in hospitals reached 244, reflecting a year-on-year increase of 70.6%, while the number of active service sites covered in primary care organizations reached 1,533, a year-on-year increase of 192.0%. The number of tests has grew significantly in both hospitals and primary care organizations. In addition, the Company deployed AI solutions in more than 296 medical check-up centers nationwide, and the reorder rate of software products in some medical check-up centers exceeded 50%.

Global market expansion is also accelerating at the same time. After obtaining market access in the CE27 countries of the European Union, the company’s products have entered markets such as Malaysia, Singapore, Thailand, the United Arab Emirates and South Africa, and the revenue of international business has increased by 17% year-on-year.

AI technology breakthroughs, intelligent upgrade of visual training

Driving the company’s growth are the continuous iteration and upgrading of products, along with investment in research, which act as dual engines. Ensuring long-term competitiveness and meeting the increasingly complex and diversified needs of our customers are the necessary safeguards for success. These include, but are not limited to, the postoperative refractive error prediction method developed by the Company in collaboration with the Eye, Ear, Nose and Throat Hospital of Fudan University, which has been published in the Journal of Cataract and Refractive Surgery (JCRS), providing ophthalmologists with a more reliable clinical reference.

A semi-supervised deep learning model developed in collaboration with Xinhua Hospital, Shanghai Jiao Tong University School of Medicine, has also achieved remarkable results and was published in iScience, a sub-journal of Cell. The model significantly reduces the cost of data labeling while maintaining excellent classification results, providing a new solution for clinical applications.

During the reporting period, the Company also successfully developed AI eye movement technology based on ordinary RGB cameras and integrated it into its vision training AI products, forming a unique AI vision training digital therapy. The upgraded version of the vision training AI products added AI eye movement and AI training guidance functions, and launched the AI VisionBox for the optometry market.

In addition, the AIFUNDUS-M multimodal fundus camera has completed its development and registration, and its hardware, software, algorithms and solutions have been fully upgraded. Meanwhile, the Company is actively advancing the research and development of non-invasive phototherapy device to continuously expand its product line.

Firm commitment to advancing technology and integrated diagnostics for public benefit

Airdoc Technology understands that corporate excellence also stems from the deep practice and relentless pursuit of social responsibility. Therefore, the company actively participates in public welfare programs, such as the large-scale chronic disease screening program in Yangchun City, Guangdong Province, which provides free chronic disease screening services for 10,000 citizens. Additionally, the company assists the laboratory sponsored by BGI in conducting risk monitoring for high-altitude sickness. During the reporting period, Airdoc's public welfare covered about 100,000 people.

Looking ahead, Airdoc Medical Technology will continue to deepen the application of AI technology in the field of medical and healthcare, and promote the wide application of General Artificial Intelligence (AGI) in assisted diagnosis, disease detection and personalized medical advice, further optimize its product portfolio, continue to expand its market channels, and enhance its global market coverage by strengthening its technological research and development and production capabilities. With the improvement of the laboratory in Changsha manufacturing base, the Company will maintain its competitive advantages in the areas of AI-based myopia prevention and control products for fundus retina, myopia prevention and control products and vision training AI products.

Airdoc Technology is firmly promoting the strategy of integrated diagnosis and treatment from detection to diagnosis, driving the comprehensive upgrade of the AI health industry, creating greater value and possibilities for society, and committed to the mission of making healthcare accessible and affordable for everyone.