Baird Medical Announces Preliminary Financial Results for the Six Months Ended June 30, 2024

Rhea-AI Summary

Baird Medical Investment Holdings (NASDAQ: BDMD) announced preliminary financial results for the six months ended June 30, 2024. Total revenues increased by 13.8% year-over-year to US$13.1 million. Gross profit rose 20.9% to US$11.5 million, while operating income grew 70.0% to US$5.1 million. Net income saw a significant increase of 85.8% to US$4.4 million.

CEO Haimei Wu highlighted the company's strong performance in China and initial traction in the U.S. market following FDA clearances. Baird Medical aims to expand in the U.S., offering minimally invasive microwave ablation technology as an alternative to traditional thyroidectomy for benign thyroid tumors. The company recently completed a business combination with ExcelFin Acquisition Corp. and began trading on Nasdaq under the ticker symbol BDMD on October 2, 2024.

Positive

• Total revenues increased by 13.8% year-over-year to US$13.1 million
• Gross profit rose 20.9% to US$11.5 million
• Operating income grew 70.0% to US$5.1 million
• Net income increased by 85.8% to US$4.4 million
• Received FDA clearances for microwave ablation technology in the U.S. market
• Completed business combination and began trading on Nasdaq under ticker BDMD

Negative

• None.

Insights

Financial Analyst

Baird Medical's preliminary financial results for H1 2024 show strong growth across key metrics. Total revenues increased by 13.8% year-over-year to $13.1 million, while net income surged by 85.8% to $4.4 million. This impressive bottom-line growth outpacing revenue growth suggests improved operational efficiency and cost management.

The company's gross profit rose by 20.9%, indicating enhanced pricing power or better cost control in production. The operating income jump of 70% further underscores the company's ability to leverage its revenue growth into higher profitability.

Baird Medical's recent FDA clearances and expansion into the U.S. market present significant growth opportunities, particularly in the thyroid tumor treatment space. With 150,000 thyroidectomies performed annually in the U.S., the company's microwave ablation technology could capture a substantial market share if it proves to be a cost-effective and less invasive alternative.

The recent business combination and Nasdaq listing should provide Baird Medical with increased visibility and access to capital, potentially accelerating its growth trajectory. Investors should monitor the company's progress in penetrating the U.S. market and its ability to maintain strong growth rates as it scales.

Medical Device Expert

Baird Medical's microwave ablation (MWA) technology for benign thyroid tumors represents a significant advancement in minimally invasive treatments. Traditional thyroidectomies often result in lifelong hormone replacement therapy and potential complications. MWA offers several advantages:

• Outpatient procedure with faster recovery times
• Preservation of thyroid function in many cases
• Reduced risk of surgical complications
• Potential for cost savings in the healthcare system

The company's expansion into the U.S. market, backed by FDA clearances, is a important step. The 150,000 annual thyroidectomies in the U.S. represent a significant addressable market. However, adoption will depend on:

• Clinical outcomes and long-term efficacy data
• Physician training and acceptance
• Reimbursement policies from insurers

Baird Medical's success in China provides a strong foundation, but the company will need to navigate the complexities of the U.S. healthcare system to achieve similar success. The potential for improved patient outcomes and reduced healthcare costs could drive adoption if supported by robust clinical evidence.

Total revenues increased to US$13.1 million, representing 13.8% year-over-year growth
Net income reached US$4.4 million, representing 85.8% year-over-year growth

GUANGZHOU, China, Oct. 11, 2024 /PRNewswire/ -- Baird Medical Investment Holdings Ltd. (NASDAQ: BDMD) ("Baird Medical" or the "Company"), a leading microwave ablation ("MWA") medical device developer and provider in China which has recently expanded into the U.S. market following its receipt of US FDA 510(k) clearances, today announced its preliminary financial results for the six months ended June 30, 2024 (the "First Half of 2024").

First Half of 2024 Financial Highlights

• Total revenues reached US$13.1 million, representing an increase of 13.8% from US$11.5 million in the same period of 2023.
• Gross profit increased by 20.9% to US$11.5 million from US$9.5 million in the first half of 2023.
• Operating income was US$5.1 million, representing an increase of 70.0% from US$3.0 million in the same period of 2023.
• Net income increased by 85.8% to US$4.4 million from US$2.4 million in the first half of 2023.

Ms. Haimei Wu, Founder and CEO of Baird Medical, commented, "Our preliminary results for the first half of 2024 reflect the continued strength of our core business in China and the initial traction we're gaining in the U.S. market. With our recent FDA clearances, we are optimistic about expanding our reach in the United States, where our minimally invasive microwave ablation technology offers a promising alternative to traditional thyroidectomy for patients with benign thyroid tumors. Given that approximately 150,000 thyroidectomies are performed annually in the U.S., we believe there's a substantial opportunity to improve patient outcomes and reduce healthcare costs. As we move forward, we remain committed to innovation and expanding access to our technology, while maintaining a disciplined approach to growth and operational efficiency."

Recent Developments
On October 1, 2024, the Company announced the completion of its previously announced business combination (the "Business Combination") with ExcelFin Acquisition Corp. The listed company resulting from the Business Combination is Baird Medical Investment Holdings Limited, and its shares and warrants commenced trading on the Nasdaq under the ticker symbols "BDMD" and "BDMDW", respectively, on October 2, 2024.

About Baird Medical
Established in 2012 and headquartered in Guangzhou, China, Baird Medical is a leading microwave ablation ("MWA") medical device manufacturer and provider in China and a recent entrant to the United States market. Baird Medical's proprietary medical devices are used for the treatment of benign and malignant tumors including thyroid nodules, liver cancer, lung nodules and breast lumps. Baird Medical is the first company to obtain a Class III medical devices registration certificate for MWA medical devices specifically indicated for thyroid nodules in China. For more information, please visit http://www.bairdmed.com/.

Forward-Looking Statements
This communication contains "forward-looking statements." Such statements include statements concerning anticipated future events and expectations that are not historical facts. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Forward-looking statements are typically identified by words such as "believe", "expect", "anticipate", "intend", "target", "estimate", "continue", "positions", "plan", "predict", "project", "forecast", "guidance", "goal", "objective", "prospects", "possible" or "potential" by future conditional verbs such as "assume", "will", "would", "should", "could" or "may" or by variations of such words or by similar expressions or the negative thereof. Actual results may vary materially from those expressed or implied by forward-looking statements based on a number of factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Baird Medical does not assume any obligation to publicly update any forward-looking statement after it is made, whether as a result of new information, future events or otherwise, except as required by law.

Contacts
Investor Relations
Robin Yang, Partner
ICR, LLC
Phone: +1 (646) 308-1475
Email: BairdMedical.IR@icrinc.com

Public Relations
Brad Burgess, Senior Vice President
ICR, LLC
Phone: +1 (646) 588-0383
Email: BairdMedical.PR@icrinc.com

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SOURCE Baird Medical Investment Holdings Ltd.

FAQ

What were Baird Medical's (BDMD) revenue and net income for the first half of 2024?

Baird Medical (BDMD) reported total revenues of US$13.1 million and net income of US$4.4 million for the first half of 2024.

How much did Baird Medical's (BDMD) net income grow compared to the same period in 2023?

Baird Medical's (BDMD) net income increased by 85.8% compared to the first half of 2023, growing from US$2.4 million to US$4.4 million.

When did Baird Medical (BDMD) begin trading on Nasdaq following its business combination?

Baird Medical (BDMD) began trading on Nasdaq on October 2, 2024, following the completion of its business combination with ExcelFin Acquisition Corp.

What is Baird Medical's (BDMD) strategy for expansion in the U.S. market?

Baird Medical (BDMD) is expanding in the U.S. market by offering minimally invasive microwave ablation technology as an alternative to traditional thyroidectomy for benign thyroid tumors, following FDA clearances.