Medical equipment manufacturer BIOTEQ held an online investor conference on the 11th, where management stated that this year's most crucial task is to complete the licensing transfer for the factory in Yilan Science Park and secure orders for intra-body catheter OEM. Currently, product trial production, verification, and validation have been completed, and it is expected to start production of high-margin medical products from the third quarter onwards. It was also disclosed that foreign manufacturers will begin inspecting the factory starting next week. 

BIOTEQ's factory in Yilan Science Park has a total floor area of approximately 14,053 ping (46,456 m2), with a budget of approximately NT$1.001 billion for land and buildings and a budget of approximately NT$512 million for machinery and miscellaneous equipment. The current budget execution progress is about 93%. Product trial production, verification, validation, and ISO 13485 certification have been completed, and the formal letter of ISO 13485 certification is expected to be obtained in the second quarter of 2024.

Management pointed out that TPU products have a high gross margin of about 75-80%, with OEM gross margins being slightly lower by about 5 percentage points. The new factory is targeting OEM orders for intra-body catheters from international giants. Currently, over 100,000 TPU catheters are produced monthly, and equipment from the old Yilan factory will also be transferred to the new factory in the future. With the production capacity of the  Yilan Science Park  new factory being nearly three times that of the old factory, capacity is not a concern. 

This year, BIOTEQ's most important task is to complete the licensing transfer for the Yilan Science Park factory. Starting next week, customers will begin inspecting the factory one after another. Internally, assessments suggest that there are no issues expected to arise, but details regarding demand volume and shipping time cannot be disclosed. As for the old Yilan factory, since it will take some time for product transfer to the factory in Yilan Science Park, there is currently no clear direction. Production will continue for now, and discussions on future disposition will only happen after the transfer is completed.