Health & Life has reported a 12.3% increase in revenue for the first nine months of the year, with a significant improvement in profit margins, turning operations from a loss to a profit. General Manager Shao-Hung Lee stated that nebulizers are the main driver of growth for the company, with order volumes from customers in the Americas and Asia on the rise. A new customer from another Asian country has also been secured, with shipments expected to begin next year. Additionally, products developed in collaboration with pharmaceutical companies for new drug applications are set to be finalized, further fueling operational growth. The shift of production to Vietnam is also anticipated to help lower costs and improve profit margins.

Currently, Health & Life is only shipping to American customers from its facility in Vietnam, which accounts for approximately 30% of its revenue. As of the end of September, the Suzhou plant began downsizing its workforce and reducing its rental space while actively transferring production to Vietnam, aiming to complete the transfer by next year. In the future, production from China is expected to decrease to 20-30%, while Vietnam’s share is expected to increase to 70-80%.

Lee emphasized that production is currently being conducted concurrently at the Suzhou and Vietnam plants, with operating costs remaining high. In the first half of the year, profit margins improved by four percentage points, reaching nearly 16%, with significant contributions from the increased production share in Vietnam. Once the production transfer is complete, costs are expected to drop significantly, and profit margins could increase by over ten percentage points, potentially reaching 30%.

Another growth driver comes from the nebulizer segment, with the increase in operations this year primarily due to the rise in shipment volumes from existing customers, including those in the Americas and Asia. Notably, orders from another major Asian customer have already been confirmed for shipment next year. Moreover, the company is collaborating with pharmaceutical firms to design high-performance nebulizers for respiratory therapy, which, upon passing clinical trials and validation, will drive further operational growth.

Resource (mandarin): 合世霧化器出貨旺，越南生產移轉明年完成毛利率拚跳高