OrbusNeich Plans to Set up Its Largest R&D and Production Base in Fuchun Bay New Town, Hangzhou, the PRC

(Hong Kong, 28 March 2023) – OrbusNeich Medical (Zhejiang) Company Limited (“OrbusNeich Zhejiang”), a wholly-owned subsidiary of OrbusNeich Medical Group Holdings Limited (“OrbusNeich” or the “Group”; stock code: 6929), a major global medical device manufacturer specialized in interventional instruments for percutaneous coronary intervention (PCI) and percutaneous transluminal angioplasty (PTA) procedures, today entered into  a commercial agreement with Hangzhou Fuchun Bay New Town Management Committee in relation to the investment  in and construction of an R&D and production base for vascular interventional medical devices (the “Project”), with investment in fixed assets amounting to approximately RMB300 million. Upon completion of construction and commencement of production, the Project is expected to have an annual production capacity of approximately 2.4 million units of products.

Pursuant to the commercial agreement, the Group is to build its R&D and production base in Fuchun Bay New Town, Hangzhou, on a site of about 20,000 m² and with construction area reaching 50,000 m². When completed, the facility will focus mainly on R&D and production of medical devices such as PCI and PTA intervention products, as well as structural heart disease interventional products, among others. The land parcel destined for industrial use will be sold by the Ministry of Natural Resources through open tender, auction and listing in open market. OrbusNeich Zhejiang will follow the required procedures to obtain land use right.

Mr. David Chien, Chairman, Executive Director and Chief Executive Officer of OrbusNeich, said, “Since listed on HKEX last December, the Group has pushed forward with implementing its corporate development strategies, with capacity expansion being an important component. In recent years, Fuchun Bay New Town has vigorously developed such emerging strategic industries as information technology, artificial intelligence, biotechnology, high-end equipment, with preferential policies in place in relation to land, talent and R&D for such enterprises. As a major global medical device manufacturer owning more than 180 granted patents, OrbusNeich setting up an operation base there will bring new and advanced technologies into the region and facilitate local industrial upgrading. We believe the cooperation will benefit the development of both the Group and Fuchun Bay New Town.”

Currently, the Group has production facilities in Shenzhen, the PRC and Hoevelaken, the Netherlands, with an aggregate annual designed capacity of approximately 1,350,000 units of balloon products and approximately 56,000 units of stent products. According to the report from China Insights Industry Consultancy, the global PCI instruments and PTA instruments markets are expected to grow at a CAGR of 12.1% and 11.1%, respectively, between 2021 and 2030, pointing to huge growth potential. For the Group, it has in the pipeline about 40 products in different development stages for new business segments such as neuro-intervention and structural heart disease intervention products, and new product series. All circumstances considered, the Group expects its existing production capacity to be saturated in the future, commanding building of new production facilities to meet medium to long-term market demand and for effective capacity allocation.

Fuchun Bay New Town is in Fuyang District, Hangzhou. After the completion of construction of the new base, it will not only be the Group’s largest R&D and production facility, but also a strategic location in the Yangtze River Delta. Capitalizing on the advantages of Yangtze River Delta as a transportation hub and talent pool, the Group can expand its production capacity, while enhancing its overall operational capabilities.

30/03/2023