Development Outlook for the Medical Device Industry After the Pandemic

As the pandemic recedes and economic recovery takes place, the government's focus on the medical device industry will increase. With a general improvement in public health awareness, the demand for products will become more precise, shifting from short-term to long-term medical device requirements. This will open up greater growth opportunities for the medical device industry. In the coming period, our company will continue to deepen its core business in three main aspects.

Firstly, expanding the product portfolio. CONTEC will continue to increase research and development investment, optimize product structures, and extend towards the high-end of the medical product value chain. The company will introduce more new products that align with market demands, such as ventilators, bedside monitors, high-end oxygen concentrators, physiotherapy equipment, and more.

 

Secondly, extending the industrial chain. CONTEC has outlined a medium to long-term capacity enhancement plan to accelerate the development of intelligent manufacturing systems. CONTEC aims to build capacity that meets the growing scale of the company over the next 5 to 10 years, as the number of ongoing products increases and global business expansion accelerates. The funds raised through the convertible bonds will be invested in these projects, which are an integral part of the capacity enhancement plan. In the future, depending on the development scale of the company's global business and progress in capacity building, we do not rule out the possibility of overseas investments and establishing manufacturing facilities abroad.

 

Thirdly, expanding product sales channels. The company will continue to adhere to a dual strategy of "focusing on both domestic and international markets." While consolidating our presence in European and American markets, we will intensify efforts to explore markets in RCEP member countries, South America, Africa, and other emerging markets. We will enter the domestic market from an e-commerce perspective and work in conjunction with distribution channels to increase our domestic market share. Our goal is to establish a global market presence with a "synchronized development and diversified expansion" strategy at the earliest opportunity.