We are a leading clear aligner treatment solution provider in China. China’s clear aligner treatment solution market is highly concentrated, with the top two market players accounting for an aggregate market share of 82.4% in 2020 in terms of case shipments, according to the CIC Report. We had a market share of approximately 41.0% in the same year, according to the same source.
We play an important role in China’s clear aligner market, which is a subset of the overall orthodontics market. We facilitate dental professionals throughout the entire clear aligner treatment process with Angelalign clear aligner system, which comprises a trio of interrelated components:
‧ Digitally-assisted case assessment support and treatment planning services. We provide all dental professionals, including orthodontists and GP dentists, with digitally-assisted case assessment support and treatment planning services. Leveraging intraoral scanners and our digitally-assisted case assessment support, dental professionals may help patients visualize how their teeth may look at the end of the treatment within a few minutes after dental scanning. After dental professionals place orders and initiate treatment cases through iOrtho, our cloud-based service platform, our stomatology team will help dental professionals design, review and modify treatment plans.
‧ Clear aligners. Clear aligner is a removable, transparent, plastic form of dental braces used to treat malocclusion. Upon the dental professional’s approval of the treatment plan, we manufacture tailor-made clear aligners according to the specific treatment plan. By applying calculated forces to teeth and moving them into an optimal position, our clear aligners help treat malocclusion with more comfort and reduced treatment time and clinic visits.
‧ Cloud-based service platform. Our iOrtho, a cloud-based service platform, allows dental professionals to perform multiple tasks in the entire treatment process, including (1) placing orders with us; (2) reviewing, modifying and finalizing their treatment plans online with the help from our medical designers, and (3) reviewing, editing and managing medical records of their patients. We primarily communicate and interact with dental professionals regarding delivery of our digitally-assisted case assessment support and treatment planning services through iOrtho.
We currently market four lines of clear aligners, including Angelalign, Angelalign Pro, Angelalign Kid and COMFOS. Our diversified clear aligners, in synergy with our medical and technological services, allow dental professionals to deliver effective treatment for a growing number of malocclusion cases with varying complexities and for an enlarging patient base of a broad spectrum of ages and different spending powers. Our case shipments increased from approximately 77,700 in 2018 to approximately 120,100 in 2019, and further to approximately 137,600 in 2020.
With profound understanding of the medical principles and practice of digital orthodontics which refers to the application of computer science and technology in malocclusion treatment, we are able to fully address disparate demands of China’s dental professionals with varying levels of sophistication, in particular a multitude of GP dentists. See “Business — Our Angelalign Clear Aligner System” for details and “Business — Our Technology and Data Platforms” for details, and “Business — Research and Development” for our R&D efforts in this regard. During the Track Record Period, the number of dental professionals we served increased from approximately 11,500 in 2018 to approximately 15,800 in 2019, and further to approximately 19,900 in 2020.
We are well positioned to capture the enormous market opportunities in China. As the second largest in the world, China’s overall clear aligner market, in terms of retail sales revenue, is expected to increase from US$1.5 billion in 2020 to US$11.9 billion in 2030 at a CAGR of 23.1%, according to the CIC Report. Moreover, the market share of China’s clear aligner market in the overall orthodontics market, in terms of retail sales revenue, increased from 5.9% in 2015 to 19.0% in 2020, and is expected to reach 40.2% by 2030. As an increasing number of traditional orthodontic cases will become addressable by clear aligners, we expect to seize the overall potential of China’s orthodontics market, which is expected to reach US$29.6 billion in terms of retail sales revenue in 2030 at a CAGR of 14.2% from 2020 to 2030, according to the same source. On the other hand, China’s clear aligner market is still at a nascent stage. In 2020, China had approximately 1,040 million malocclusion cases; however, among the 3.1 million treated malocclusion cases in China in 2020, only 11.0% were addressed with clear aligners, which indicates a huge underpenetrated clear aligner market in China. Leveraging our market leadership and our intimate understanding of China’s digital orthodontics market, we believe that we are well positioned to capture the upside potential of the enormous market. Furthermore, we are poised to expand into the global clear aligner market, which is expected to reach US$46.2 billion in terms of retail sales revenue by 2030.
We attribute our capability in digital orthodontics to the integrated application of our dedicated scientific research efforts on a range of relevant subjects, including clinical stomatology, biomechanics, materials science, computer science and intelligent manufacturing technologies, including 3D printing and manufacturing automation. As the nucleus of our Angelalign clear aligner system, our self-developed and solid technology and data platforms, nicknamed masterForce, masterControl and masterEngine, play a vital role in our capability to continuously make breakthroughs in digital orthodontics, which has created entry barriers and underpinned our long-term growth. Furthermore, we manufacture all the clear aligners pertinent to specific treatment plans through a “mass customization” model, leveraging our intelligent manufacturing technologies, including 3D printing and automated production lines.
We experienced significant growth during the Track Record Period. We generate revenue primarily from the provision of clear aligner treatment solutions. We recognize revenue for our clear aligner solutions based on the promises comprising (1) digitally-assisted support and treatment planning services, and (2) clear aligners, which we contract for with customers. We do not charge customers for the use of iOrtho alone. Our revenue increased from RMB488.5 million in 2018 to RMB645.9 million in 2019, and further to RMB816.5 million in 2020. Our net profit increased from RMB58.2 million in 2018 to RMB67.7 million in 2019, and further to RMB150.9 million in 2020. Our adjusted EBITDA (non-IFRS measure) was RMB129.1 million, RMB174.6 million and RMB296.6 million in 2018, 2019 and 2020, respectively. Our adjusted net profit (non-IFRS measure) was RMB92.1 million, RMB130.0 million and RMB227.2 million in 2018, 2019 and 2020, respectively.
Source: Angelalign Tech (06699) Prospectus (IPO Date : 2021/06/03) |