On the occasion of the Spring Festival in 2020, Shanghai Lianying Medical Technology Co., Ltd. (hereinafter referred to as "Lianying Medical") sent 43 imaging equipment to Wuhan, and the equipment was put into operation on the day of the completion of Huoshenshan Hospital. It is reported that under normal circumstances, the production cycle of the equipment is 12 days, but in order to support Wuhan, Lianying Medical concentrated resources to work overtime for 24 hours and produced 43 devices in four days.
From January 21 to 30, 2020, lianying medical sent hundreds of imaging equipment to the whole country.
In September 2020, at the "National Commendation Conference for Fighting the New Crown Epidemic" of the State Council, the company was awarded the "Advanced Collective in Fighting the Epidemic", and was the only enterprise selected in the high-end medical imaging equipment industry. At the same time, the company has also provided emergency assistance to nearly 30 countries and regions with high-end medical imaging equipment and expert teams to help the global fight against the epidemic.
Recently, the company submitted a listing application on the Science and Technology Innovation Board to raise RMB1.214 billion, sponsored by CICC and CITIC Securities.
Breaking the high-end monopoly, employees are the second largest shareholder
"Mastering all core technologies", "independent research and development of the whole line", and "benchmarking international standards" are the goals set by Lianying Medical at the beginning of its establishment.
After years of research and development, Lianying Medical led the development of the first domestic 3.0T high-field magnetic resonance equipment, realizing 100% independent research and development of core components, and the overall product performance of the equipment has reached the international advanced level, and some indicators have reached the international leading level.
Before the successful research and development of Lianying Medical, there were only 2 enterprises in the world that realized the independent research and development of all core components of magnetic resonance, resulting in high dependence on imports of high-end medical imaging equipment in the mainland.
In recent years, the high-field strong magnetic resonance equipment developed by Lianying Medical and other units has broken this situation, making the mainland the third country to fully grasp the core component technology and manufacturing of high-end magnetic resonance.
At present, the company is committed to providing high-performance medical imaging equipment, radiation therapy products, life science instruments and medical digitalization and intelligent solutions for global customers, has established a global R & D, production and service network, has been settled in nearly 900 top three hospitals in the country, and its MR, CT, PET/CT and PET/MR and other products rank first in the domestic new market share.
More than 1,700 people in the company have master's or doctoral degrees, more than 350 people have overseas education background or work experience, more than 35% of them are engaged in research and development, and more than 1,500 invention patents have been authorized.
In order to attract more talents, the company also realizes employees to share the company's development dividends in the form of equity incentives, and employees hold a total of 8.56% of the company's shares, second only to the 23.14% shares of Xue Min, the actual controller of the company.
Source: The prospectus market is expanding rapidly, challenging high-end players
Global aging, increased chronic diseases and increased medical spending have led to an expansion in the size of the global medical device market, and the COVID-19 pandemic has accelerated the expansion of the market. According to china insight consulting data, the global medical device market size has exceeded 440 billion US dollars in 2020, and China has become the second largest market in the world with a market share of 23%, of which the new market share of medical device products such as MR, CT, PET/CT and PET/MR of Lianying Medical ranks first in China.
Source: Prospectus
Compared with the global medical device market, China's medical device industry as a whole started late, but with the improvement of market demand, the state's support for the medical industry and the industrial upgrading brought about by the technological development of the medical device industry, the medical device industry will maintain a good trend of rapid growth, and realize the process of import substitution from low-end products to high-end products, it is expected that the scale of China's medical device market will exceed 2.2 trillion yuan in 2030, and the compound annual growth rate of 2020-2030 is expected to reach 11.2%.
Medical imaging devices (MR, CT, XR and MI, etc.) are the segments with the highest technical barriers in the medical device industry, and are also the main product and revenue source of Lianying Medical.
During the reporting period, the proportion of the main business income of Lianying Medical to the operating income was more than 95%, the company's main business income was 1.98 billion yuan, 2.93 billion yuan, 5.70 billion yuan and 3.06 billion yuan, and from 2018 to 2020, the net profit was -130 million yuan, -48.048 million yuan, 940 million yuan and 640 million yuan, and the compound growth rate of the company's operating income reached 68.27%.
Among them, the sales revenue of medical imaging diagnostic equipment and radiation therapy equipment accounts for more than 88% of the main business income, which is the core income sector that drives the overall revenue growth, of which MR, CT and XR products as the traditional main sources of income account for more than 75%, and the reporting period is 86.76%, 78.08%, 81.23% and 79.34% respectively.
From the perspective of competition, the company's competitors are: GE Healthcare, Siemens Medical, Philips Medical (similar business model, all covering high-end medical imaging equipment), Varian, Elekta (manufacturer of radiation therapy products), Wandong, Neusoft, Mindray. Through the comparison of relevant financial indicators, it can be found that the company has a better performance in the market, but there is still a certain gap compared with the industry leader.
Swung
From the perspective of financial data, during the reporting period, the net profit was -130 million yuan, -48.048 million yuan, 940 million yuan and 640 million yuan, respectively, and the net profit turned into a profit from 2020, showing a trend of rising year by year. The main reason for the negative undistributed profit is that the company invested main funds in the research and development, talent introduction and market development in the field of high-end medical imaging equipment in the early stage of establishment, and the expenditure on research and development and sales expenses was relatively high, and the income generated in the early stage was not enough to cover the expenditure in the same period.
Therefore, although the expenses increased year by year during the period, they benefited from the accumulation of the early market and technological precipitation, the market position and product competitiveness continued to improve, the growth of revenue diluted the expenses, and the company's net profit rose year by year.
Although the company masters the core technology, the company's main products have the situation of external procurement of core components, so they are affected by factors such as exchange rates and tariffs, and there is also a risk of unstable supply.