KIM Forest held its shareholders meeting on May 21, where Chairman Pin-Tsung Wu announced that the Ministry of Health and Welfare (MOHW) has started providing health insurance subsidies for next-generation sequencing (NGS) for cancer patients. This initiative is expected to benefit approximately 30,000 new cancer patients annually. In response, KIM Forest has prepared three different reimbursement packages covering 19 major types of cancer and has signed agreements with domestic medical institutions to offer internationally standardized genetic testing services.
During the shareholders meeting, the 2023 financial and operational reports were approved. Due to the decreased demand for COVID-19 PCR test kits and testing post-pandemic, the company's consolidated revenue for 2023 was NT$415 million, a 38.11% year-on-year decrease, with a net loss of NT$125 million. The shareholders also approved a capital increase of NT$0.5 per share through capital reserves.
Pin-Tsung Wu highlighted the company's successful entry into the advanced testing market in recent years, positioning KIM Forest as one of the few companies in Taiwan certified by the Ministry of Health and Welfare (LTDS), the US CLIA, and CAP for high-level testing. The company also represents dozens of internationally renowned manufacturers of instruments and reagents, fulfilling the needs of the domestic biotech industry and research institutions, thereby establishing a solid foundation for business cooperation. Additionally, KIM Forest has developed its own FDA 510K-compliant reagents, helping customers manage budget costs.
To venture into AI-based intelligent testing, KIM Forest has established a subsidiary, Yuen Tsuei Data, to enter the precision medicine and preventive healthcare markets. This move aims to leverage top-tier localized genetic testing services to capture the rapidly growing opportunities in whole-genome testing.
KIM Forest announced that starting mid-year, the MOHW will provide health insurance subsidies for NGS for cancer patients, potentially benefiting about 30,000 new cancer patients annually. The company offers three different reimbursement packages for 19 types of cancer, with the minimum reimbursement being nearly NT$10,000 and the maximum close to NT$30,000. This initiative will increase annual health insurance expenditures by approximately NT$900 million. KIM Forest has signed agreements with domestic medical institutions to offer genetic testing services that meet international standards.
Currently, KIM Forest's testing platform boasts the capability to simultaneously test for 523 cancer-related genes. The company has also developed its own "companion diagnostic testing kit" for cancer, which is expected to significantly reduce testing costs and quickly capture market share in response to domestic competition. Furthermore, plans are in place to promote NGS products internationally through its U.S. subsidiary once relevant certifications are obtained, thereby seizing the growing opportunities in advanced testing and expanding revenue streams.
Looking ahead, rapid advancements in genetic testing technology and reduced costs will facilitate broader adoption, expanding market opportunities. KIM Forest remains committed to the spirit of "international standards, local service." The company continues to introduce top-tier international brands and develop its own reagents and testing kits to meet customer needs and enhance loyalty, positioning itself as a reliable partner for domestic medical institutions and research units. Additionally, its U.S. subsidiary, Gene On Link, focuses on expanding international business, aiming to establish KIM Forest as a globally competitive player in advanced testing.
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