Shanghai, China—MicroPort CardioFlow Medtech Corporation (MicroPort CardioFlow) is pleased to announce the results of the Company and its subsidiaries for the year ended December 31st, 2020.

Year 2020 is the second year for launching of our first commercialized TAVI product VitaFlow^®, the business of the Group keeps growing rapidly, all of our revenue was generated from the sales of VitaFlow^®. During the Reporting Period, the Group’s revenue was RMB103.9 million which is increased by 383.4% compared with the year 2019. In addition to the significant growth in the revenue, our gross profit margin also increased significantly by 15% from 29% in year 2019 to 44% in year 2020.

In 2020, TAVI procedures using VitaFlow^® had been performed at 144 hospitals in China and 1293 units of VitaFlow^® were sold which constitute a rapid increase in the number of hospitalizations and sales scale. Meanwhile, the Group accelerated the market penetration of VitaFlow® as well, which effectively increased the breadth and depth of product coverage in hospitals. To date, we have successfully established a network for VitaFlow® in 29 provinces, autonomous region and municipality in China, covering 166 hospitals, most of which are Class IIIA hospitals in the first and second tier cities, including 18 of the top 20 TAVI hospitals in China. VitaFlow^® has obtained medical reimbursement approval in Guizhou and Yunnan, and received reimbursement code in Shanghai till now. With respect to the development of the overseas markets, we registered VitaFlow® in Argentina and Thailand in July 2020 and November 2020 respectively which will allow more overseas patients and doctors to apply high-quality and affordable "Chinese solutions" in the field of aortic valve disease.

With respect to the development of new products, we submitted the registration application for VitaFlow Liberty™ to the NMPA in October 2020, we expect that we will complete the registration of VitaFlow Liberty™ in China by the end of 2021. We are also conducting a pivotal clinical trial for VitaFlow Liberty™ in Europe and plan to submit the application for CE Mark registration in 2021. VitaFlow Liberty™ achieves retrievability and repositioning, which can greatly improve the accuracy of valve release and benefit the patients. In addition, the Group has filed an application for registration with NMPA for the first generation of cutting-edge preformed super-hard guide wires as part of the VitaFlow Liberty™ product line. Our second generation of the Alpass® sheath is also being validated and will provide improved lubrication performance over the first generation. In order to further improve the supporting product scheme, we are designing an embolic protective device used for protection of brain during TAVI procedures. In addition to TAVI products, the Group currently have five TMV pipeline products, strategically targeting all mainstream viable TMVT options for mitral regurgitation, enabling us to penetrate the vast but underserved TMV market through in-house development and collaboration with our global partners.

With respect to the manufacturing capacity, we are actively laying out capacity upgrading to respond to the growing market demand. The group now has two production sites in Shanghai, with a total area of about 3864 square meters. The Group's new production site with a total area of approximately 13,000 square meters expected to be operational in 2022 will significantly increase the Group's manufacturing capacity.

“Thanks to VitaFlow^®’s excellent clinical manifestation, reasonable pricing, strong internal market sales team and external distributors, as well as the brand synergies with our controlling shareholder MicroPort®, the Group achieved a rapid growth in 2020. In the future, more efforts will be made in the development of new products, we will promote the strategic layout of internationalization while increase and deepen the domestic market penetration, expand the income of the domestic and overseas markets, and realize the sustainable development of the Company.” said Mr. Chen Guoming, the president and executive director of the Company.

“We kept a strong growth in 2020, and the successful listing on the Hong Kong Stock Exchange in early 2021 has opened up a broader space for our development. In the future, we will further strengthen Company governance, improve Company’s operating efficiency, continue to expand a diversified product portfolio, and launch more high-end innovative integrated medical solutions to meet clinical needs and benefit patients with heart valve diseases around the world.” said Dr. Luo Qiyi, the non-executive Director and chairman of the Company.