Sisram Medical (1696.HK) Files Prospectus Highlighting 23.2% YoY Net Profit Growth in 2022 and Global Leadership in Energy-Based Aesthetic Devices
According toAccording to Frost & Sullivan data, the global medical aesthetics market size has grown from $125.8 billion in 2017 to $141.7 billion in 2021, with a compound annual growth rate (CAGR) of 3%. It is projected to reach $360.2 billion by 2030, representing a CAGR of 10.9% from 2021 to 2030, indicating that the medical aesthetics industry has entered a period of rapid development.
Sisram Medical (hereinafter referred to as “Sisram,” stock code: 1696.HK), established in 2013, is a global leading supplier of medical aesthetic devices and one of the key members of Fosun Pharma’s medical device segment. Listed in Hong Kong, China in 2017, Sisram was the first Israeli company to be listed on the Main Board of The Stock Exchange of Hong Kong Limited. These distinctions have drawn significant market attention to Sisram.
With the continued prosperity of the “Her Economy,” a growing number of consumers are joining the pursuit of beauty, and aesthetic trends are becoming increasingly diverse and personalized.
Since its inception, Sisram has continuously expanded into various niche segments of the medical aesthetics industry, implementing a comprehensive strategic layout. It has gradually grown into a leading global company in the energy-based device sector for medical aesthetics, mastering multiple energy-source technologies and offering 100 different types of treatment handpieces, with products distributed across approximately 90 countries and regions worldwide.
Sisram currently boasts a comprehensive portfolio of medical aesthetic devices, primarily encompassing four key business segments: energy-based aesthetic equipment, injectables and dermal fillers, aesthetic and digital dentistry, and personal care.
Among these, energy-based device equipment constitutes the core business of Sisram Medical Ltd. According to Sisram’s 2022 annual report, the company’s Medical Aesthetics segment generated revenue of $306.9 million in 2022, representing an 18.7% increase from $258.5 million in 2021. The Medical Aesthetics segment accounted for nearly 90% of the company’s total revenue in both 2021 and 2022.
Sisram 2022 Annual Report
As can be seen, Sisram’s medical aesthetics business accounts for nearly the entirety of the company’s revenue. What technological products underpin this formidable revenue-generating capability? Moreover, what innovations and advantages do these products offer that enable them to consistently contribute nearly 90% of the company’s income?
The 2022 annual report revealed that 90% of the revenue from Sisram Medical’s aesthetic medicine product line was primarily derived from its core products—the four flagship series: Soprano, Harmony, Opus, and Accent.
I. Soprano: A cloud-based digital management tool integrated with a laser hair removal device suitable for all skin tones
The Soprano flagship series has undergone multiple iterations over nearly two decades of development. Notably, upon its launch in 2019, the Soprano Titanium drove a 31.5% year-over-year increase in revenue for the entire product line, thanks to its strong market performance.
Soprano Titanium
Image source: Alma official website
The Soprano Titanium features an innovative and highly efficient new 3D TRIO 4 cm² applicator. This handpiece boasts a large 4 cm² spot size, enhancing treatment efficiency, significantly reducing session times, and ensuring a more comfortable experience for patients. Furthermore, the Soprano Titanium is suitable for all skin tones and hair types.
TRIO 4cm²
Image source: Alma official website
Furthermore, Soprano Titanium features a pioneering IoT-enabled platform—Smart Clinic. Smart Clinic is a cloud-based digital management tool accessible from PCs or any mobile device, allowing healthcare institutions to continuously access real-time data and achieve seamless device management, such as analyzing system performance, treatment efficiency, and return on investment.
II. Harmony: A Non-Invasive Skin Management Integrated Platform, FDA-Approved for 65 Indications
Harmony is an energy-based aesthetic medical device that integrates laser and ultrasound technologies, serving as a comprehensive platform within Sisram’s non-invasive aesthetic medicine product line for addressing various skin concerns.
Harmony has undergone two product iterations. The third-generation platform, Harmony XL Pro Special Edition, consists of multiple modules and primarily targets the following six indications: skin rejuvenation, vascular lesions, pigmented lesions, tone and texture, hair removal, and acne.
Harmony XL Pro Special Edition
Image source: Alma official website
The Harmony series is renowned for its comprehensiveness. By pairing with various peripheral modules, it can meet diverse skin care treatment needs. Each handpiece features unique principles and technologies, suitable for different indications. Compared to the previous generation, the Harmony XL Pro Special Edition primarily introduces two major technological innovations.
The First Multifunctional Q-Laser Device with Depth Control—ClearLift 4D.ClearLift is the world’s first fractional non-ablative Q-switched laser device, with wavelengths of 1064/532 nm. It is used to treat multiple age-related skin concerns, including pigmentation, wrinkles, fine lines, and skin texture improvement, as well as for tattoo removal.
ClearSkinPro: The First Device to Combine Non-Ablative Laser with Continuous Contact Cooling and Vacuum TechnologyClearSkin Pro utilizes a 1540nm erbium-glass laser to deeply penetrate the skin and eradicate Cutibacterium acnes, reducing sebum secretion while maintaining epidermal integrity. It provides a comfortable, safe, and effective treatment for acne at its source, while also stimulating collagen remodeling to minimize the formation of acne scars.
3. Opus: Pioneering Super Ion Technology for Treating Neck Wrinkles, Non-Invasively Stimulating Cellular Regeneration in Layers
Opus Ultra-Ion is the world’s first optoelectronic device specifically designed for treating neck wrinkles, offering three key benefits: reduction of fine lines on the neck, skin tightening, and evening out skin tone. Opus features three adjustable intensity levels—mild, moderate, and strong—and operates at a high frequency exceeding 40 MHz.
Furthermore, Opus innovatively combines super-ion + monopolar radiofrequency with the company’s patented In-Motion gliding technology, reducing neck treatment time to just 10–20 minutes. The device can also be used to treat and improve facial skin concerns.
Opus
Image source: Alma official website
IV. Accent: Ultrasound-Guided + Patented Monopolar Radiofrequency, Dual Technologies Combine for Skin Tightening and Body Contouring
Accent is a non-invasive treatment device that combines radiofrequency and ultrasound technologies, and has undergone multiple updates and iterations since its market launch in 2004.
Specifically, the Accent series employs a unique dielectric heating mechanism for treatment. By delivering high-frequency radiofrequency energy directly into the tissue, it causes water molecules to rotate and friction rapidly, generating heat. This induces volumetric contraction of fibers within the skin, stimulates neocollagenesis, and improves collagen thickness and alignment.
The Accent ultrasonic handpiece emits a mixed wave comprising both longitudinal and transverse waves. In contrast to most other ultrasonic devices on the market, which utilize only longitudinal waves to selectively target adipocytes—inducing fat cavitation without damaging surrounding tissues—the addition of transverse waves enhances patient comfort during the treatment and enables thermal disruption of deeper-layer adipose tissue.
In addition to the four core flagship series mentioned above, Sisram has also launched LMNT, a lifestyle beauty brand specializing in at-home beauty devices.
In May 2022, LMNT’s inaugural product, LMNT.one, was simultaneously launched in the markets of Israel, Italy, and China. The device employs a classic combination of aesthetic technologies: LED red light, near-infrared (NIR) light, and micro-pulse technology. Clinically validated, it effectively enhances skin condition, improves cutaneous microcirculation, brightens the complexion, and stimulates neocollagenesis.
The 2022 annual report also showed that Sisram achieved full-year operating revenue of $354 million in 2022, a year-on-year increase of 20.45%, with net profit attributable to shareholders of the parent company amounting to $40.17 million, a year-on-year increase of 28.56%. The company expects full-year revenue growth of 15%-25% in 2023.
Sisram’s Operating Revenue and Growth Rate, 2014–2022 (in millions of U.S. dollars)
Source: Guosheng Securities Research Institute
Behind these achievements lies the company’s continuous optimization of its sales channel structure and its steadily increasing investment in R&D for innovation.
First, proactively establish a global direct sales network to increase the proportion of revenue from direct channels and drive profitability growth.In addition to the nine direct sales offices already established in the United States, Germany, Israel, Hong Kong (China), Mainland China, South Korea, and Australia, the Company set up new direct sales offices in the United Kingdom and Dubai in 2022 and 2023, respectively, to support and meet the strong demand for its products and services in the European and Middle Eastern markets.
By 2022, the revenue contribution from Sisram’s direct sales channels had reached 66%. Meanwhile, the company has continuously launched new high-margin products into the market, with its gross profit margin reaching 57.1% by the end of 2022, representing a slight increase compared to 56.7% in the same period of 2021.
Secondly, increase R&D investment to promote the iterative upgrades and innovation of high-end new devices in the company's energy-based device segment.According to the 2022 annual report, the company’s R&D expenses in 2022 amounted to USD 18 million, representing a year-on-year increase of 15.6%. From 2017 to 2020, R&D investment consistently accounted for more than 6% of operating revenue. Furthermore, as of the end of 2022, R&D personnel comprised 10.9% of the company’s total workforce.
R&D Expenses and Proportion (USD 10,000)
Source: Guosheng Securities Research Institute
In addition to the three new products launched by the Company during the 2022 reporting period, the VorFat system, featuring a novel adipose tissue micronization technology independently developed by Sisram, received U.S. FDA clearance in June 2023.
This device is designed to perform closed-loop micronization processing of autologous adipose tissue harvested, concentrated, and transferred by liposuction equipment, for subsequent reinjection in medical treatments. Meanwhile, this technology can also be applied in the following surgical fields: orthopedics, arthroscopy, neurosurgery, urological surgery, gynecological surgery, thoracic surgery, laparoscopy, and plastic and reconstructive surgery.
Furthermore, Sisram is actively exploring the male market to meet emerging market and customer demands, thereby creating a new engine for the company’s future growth. The company is also expanding its dental healthcare services, such as Fosun Dental and the Copulla digital platform, as well as personal care brands like LMNT, to drive the expansion of its aesthetics business portfolio.
China is Sisram’s core market in the Asia-Pacific region and a key strategic market for the company’s future development. According to the 2022 annual report, revenue from the Asia-Pacific (APAC) region approached USD 100 million in 2022, making it the second-largest market after North America and significantly surpassing the European market.
Sisram 2022 Annual Report
Consequently, to better align with the Asia-Pacific market and expand its business scope, Sisram announced in the second year after its IPO that it would adopt the Chinese stock trading name “Sisram Medical Technology” for trading on The Stock Exchange of Hong Kong Limited, while retaining the English stock short name “Sisram Med.”
Specifically, the character “Fu” is derived from its parent company, Fosun. As Sisram’s controlling shareholder, Fosun Pharma leverages its expertise in the healthcare industry, industry insights, network advantages, and market channels to support Sisram in the energy-based aesthetic medical device markets in China and globally. This support drives Sisram’s diversified and rapid growth in medical device technology and business operations, aiming to capture a larger market share.
In June 2023, Alma Lasers, a wholly-owned subsidiary of Sisram Medical Ltd, announced the completion of the transaction with PhotonMed International Limited, a leading distributor of energy-based medical devices in China. This move further advances its penetration and deep cultivation in mainland China, creating a powerful synergy of “products + distribution channels” and strengthening Sisram Medical’s footprint in the Chinese market.
Notably, after Sisram Medical Ltd announced its merger and acquisition, the company’s shares on the Hong Kong Stock Exchange surged by more than 13% at one point before closing in the afternoon.
PhotonMed has served as the exclusive distributor of Alma Lasers products since 2003, establishing 14 offices across China. Leveraging PhotonMed’s direct sales channels and its integrated strengths in marketing, technical product support, and after-sales service, Sisram Medical Ltd will further deepen its presence in end-user markets, accelerate its global expansion, and continuously consolidate its industry leadership.
Sisram Chairman Liu Yi has publicly stated that,“Sisram is the largest energy-based aesthetic medical device supplier in China and the fifth largest globally. As a leader in energy-based aesthetic medical devices, it will continue to grow and strengthen. In the future, the company will expand not only in the field of medical aesthetics but also in the broader medical device sector, with product and service innovation as its core focus.”
References:
1. Led by Five Major Technologies: How to Strike Gold in the Multi-Billion-Dollar Aesthetic Medicine Sector? - VCBeat
2. Global Leader in Optoelectronic Medical Aesthetics, Accelerating Toward a Full-Category Aesthetics Portfolio – Guosheng Securities
3. What New Chapter Does Sisram’s Name Change Herald? – Fosun Pharma