2023 medical equipment leading enterprises semi-annual report inventory

In the August Financial Reporting season, various companies in the medical device field successively released semi-annual reports for 2023, of which the medical equipment giant led by Mindray, Andon Medical, Sono Scape Medical and Lepu Medical and other leading companies also kept up with the release rhythm.

In the first half of this year, affected by multiple factors such as strong market demand, medical device companies achieved outstanding performance in the first half of the year. According to eastmoney.com data statistics, as of August 30, a total of 19 medical device companies issued semi-annual reports, of which 3 had revenue of more than 1 billion yuan, and 12 companies achieved net profit growth in the first half of the year.

From the revenue point of view, the three companies with revenue exceeding 1 billion yuan compared with last year are Yuwell Medical., Sono Scape Medical, Shandong Pharmaceutical Glass co., LTD., In the first half of the year, the revenue reached 4.98 billion yuan, 1.043 billion yuan and 2.422 billion yuan, with year-on-year growth of 157.13%, 24.87% and 22.56% respectively. Revenue growth was driven by increased investment in research and development and accelerated launch of blockbuster new products.

Mindray Medical: Double increase in first-half revenue and net profit

Domestic medical device giant Mindray Medical disclosed the semi-annual report on the evening of August 29, the company achieved operating income of 18.476 billion yuan in the first half of the year, an increase of 20.32%; Net profit was 6.442 billion yuan, up 21.83% year-on-year; Basic earnings per share 5.32 yuan.

opment, during the reporting period, Mindray medical research and development investment reached 2.04 billion yuan, an increase of 40.07%, providing a guarantee for further strengthening international and domestic competitiveness in the future.

In the first half of the year, the gross profit margin of Mindray’s three major medical businesses all increased. The company’s life information and support business achieved operating income of 8.667 billion yuan, an increase of 27.99%, mainly due to the development of new domestic medical infrastructure and the breakthrough of overseas high-end customer base.

The company’s in vitro diagnosis business achieved operating revenue of 5.975 billion yuan, an increase of 16.18%. The company’s medical imaging business achieved operating income of 3.701 billion yuan, an increase of 13.40%.

It can be seen that in the first half of 2023, the life information and support business grew rapidly, and the growth rate of in vitro diagnosis and medical imaging declined. This was due to the increase in market demand, and Mindray Medical significantly tilted its production capacity on related critical products during this period, which enabled the life information and support business to achieve rapid growth in the first quarter.

But at the same time, it inevitably affected the growth of the other two business areas and the international market in the first quarter. Although there was an imbalance in the growth rate of the three major businesses in the first half of the year, considering the special situation in the first quarter, the data in the first half of the year is still considerable.

 WuXi AppTec：Earning 5.3 billion yuan in half a year

At the beginning of August, Wuxi AppTec disclosed its semi-annual report card, and its operating income in the first half of the year increased by 6.3% to 18.871 billion yuan. Net profit reached 5.3 billion yuan, up 14.61% year on year; From the perspective of revenue and net profit, it is the best half-yearly results recorded by Wuxi Apptec since its listing.

However, despite the best semi- annual report results since its listing, it is difficult to conceal the hidden concerns of a slowdown in its performance growth rate. In the first half of this year, Wuxi AppTec’s revenue growth slowed to single digits for the first time since it went public.

 Aier Ophthalmology: first-half net profit up more than 30%

 On the evening of August 24, Aier Eye disclosed the semi-annual report of 2023. During the reporting period, the company achieved operating income of 10.252 billion yuan, an increase of 26.45%; Realized a net profit attributable to the parent company of 1.712 billion yuan,

The announcement shows that in the first half of the year, Aier Ophthalmology’s refractive business maintained stable growth, with refractive project revenue increasing by 17.15% year-on-year; The company’s cataract, posterior segment, and optometry businesses have seen significant growth, with growth rates of 60.28%, 31.82%, and 30.5%, respectively.

As of June 30, Aier Ophthalmology had 229 domestic hospitals and 168 outpatient departments.

In addition, there are enterprises represented by Jiuan Medical and Lepu Medical to achieve negative revenue growth, and the main factors affecting the negative revenue growth are the reduced demand for IVD products in the post-COVID-19 era and the impact of centralized purchase.

Jiu’an Medical: Net profit plummeted by over 90% in the first half of the year

Jiuan Medical disclosed its semi- annual report on August 29th, stating that the company achieved a revenue of 2.283 billion yuan in the half year of 2023, a year-on-year decrease of 90.19%; The net profit attributable to the parent company was 786 million yuan, a year-on-year decrease of 94.84%.

Jiuan Medical said that the change in revenue was mainly due to the decline in IVD

kit sales during the reporting period.

iHealth series products (including kit products) is the revenue pillar of Jiuan Medical, during the reporting period, its revenue fell sharply to 2.144 billion yuan, down 90.70% year-on-year, gross margin fell 12.86%, accounting for 93.92% of revenue.

The growth of Jiuan medical performance in the same period last year was mainly driven by the sharp increase in sales of iHealth kit products. The demand for the company’s antigen home self-test kit products is directly related to the market demand in the United States, and is also affected by local policies and market competition environment, resulting in a decrease in market demand for kit products.

In 2022, the company’s performance was sitting on the “rocket”. In 2022, Jiuan Medical achieved operating income of 26.315 billion yuan, an increase of 997.80% over the same period last year, and operating profit of 18.311 billion yuan, an increase of 1726.53% over the same period last year.

On the evening of January 31 this year, Jiuan Medical released a financial plan of up to 20 billion yuan. The Company and its subsidiaries intend to use their own funds with a maximum total amount of no more than (including) 17 billion yuan or equivalent foreign currency for entrusted financial management, and to use their own funds with a maximum total amount of no more than (including) 3 billion yuan or equivalent foreign currency for securities investment.

Lepu Medical: Both revenue and profit have declined in the past six months

On August 25, Lepu Medical released its semi-annual report. During the reporting period, operating income was 4.301 billion, a decrease of 19.35% compared with the same period last year. The net profit after deduction was 905 million yuan, a decrease of 28.38% compared to the same period last year.

In terms of specific businesses, medical devices, as the pillar business of Lepu’s medical care, plunged 32.58%, with revenue of 2.016 billion yuan, and the drug business also fell 8.5% from the same period last year, with revenue of 1.599 billion yuan. The only positive growth was in medical services and health management, with revenue of 686 million, up 15.23 per cent from the same period last year.

Medical service and health management is an emerging business sector cultivated by Lepu Medical, which mainly provides cardiovascular disease medical services and health management through cardiovascular specialized hospitals, medical diagnostic laboratories, and pharmaceutical equipment e-commerce platforms. Obviously, although the medical service and health management achieved positive growth, the revenue accounted for only 15.95% of the total revenue, which was not enough to support the performance of Lepu Medical.

The medical device segment is the pillar segment of Lepu Medical, and its subdivisions include cardiovascular implantation intervention, in vitro diagnosis and surgical anesthesia, among which cardiovascular implantation intervention is the core of the core. However, regardless of antigen and PCR laboratory related instruments and equipment products, medical devices are also growing weakly.

Regarding this, Lepu Medical explained that overall, all business sectors have grown, and cutting balloons are on the medical healthcare security attention list. The company hopes to carefully clear channels, and anesthesia has been centralized purchased. It is expected that dealers will stop purchasing and there will be no growth.

Summary: Medical device industry semi-annual report dialysis

In addition to the aforementioned enterprises, there were also 12 medical device companies that achieved growth in net profit in the first half of the year. Among them, SWS Medical performance is particularly outstanding, the company’s net profit in the first half of the year increased by 687.10%, reaching 134 million yuan; It was followed by Glory Medical, whose net profit rose 126.14% to 11.55 million yuan in the first half of the year.

Gangt Medical’s first-half net profit also nearly doubled, rising 98.64% to 42.31 million yuan. It is worth mentioning that the company’s performance in the secondary market is also noteworthy.

In addition, a number of Medical device companies, including.Chison, iRay Technology, Touch Medical and Wandong Medical, reported net profit growth of more than 10 per cent.

For the medical device sector, a newly released research report by CITIC Security points out that the medical device sector proposes to select structural opportunities around hospital recovery, policy clearance and structural changes.

Data shows that the domestic medical device industry has maintained rapid growth at a compound annual growth rate of 10.54% in the past five years, with a huge market space.

Topsperity Security analysts have pointed out in the research report that there are many subdivisions of medical equipment, low localization rate + high technical barriers equipment is the current domestic medical equipment focus areas, and high-end domestic substitution + concentration enhancement contains investment opportunities.

Huajin Security recently released a research report that the current medical sector is in the bottom stage, and it is at a low level from the perspective of valuation and rise and fall. The fundamental demand side of the industry is stable and good, the industry ecology is continuously optimized, and it is recommended to pay attention to medical devices and other sectors in the long term.

China is encouraging China end uses for more domestic products in latest years. Thus, more and more overseas manufacturers are planning localization in China. BradyKnows localization team has extensive experiences in facility establishment, audit, supplier evaluation, manufacturing, registration, and marketing in China. Pls feel free to let us know any questions on China entry via info@bradyknowsmedical.com

Source: Medical Device Innovation Network

Translated & edited ： Bradyknows