On December 31, 2021, Shanghai United Pictures Medical Technology Co., Ltd. (hereinafter referred to as "United Pictures Medical"), a leading domestic medical imaging equipment company, submitted a prospectus on the Science and Technology Innovation Board. On April 15, United Shadow Medical hit the listing in one fell swoop, raising as much as 12.48 billion yuan, with CITIC Securities and CICC as its joint sponsors.
Figure 1 United Pictures Medical Prospectus (Source: United Pictures Prospectus)
According to the prospectus, the funds raised this time will be used to further support the scale and globalization of the company's future development, expand the company's high-end medical imaging equipment production capacity, accelerate the company's product and technology upgrades, improve the localization level of core components, expand the company's domestic and foreign market share, and promote the company to become a world-class medical innovation leader.
Founded in 2011, United Pictures Medical is headquartered in Shanghai, with regional headquarters and R&D centers in the United States, Malaysia, the United Arab Emirates, Poland and other places. Lianying is a medical equipment and medical information solutions provider, mainly committed to providing high-performance medical imaging, radiotherapy products, life science instruments and medical digital solutions for customers around the world.
Up to now, Lianying Medical has launched more than 70 products and developed seven product lines, mainly including components (CO), computed tomography scanners (CT), magnetic resonance (MRI), X-ray (X-Ray), molecular imaging (MI), mobile medical (m-Health), software (SW), is the only domestic product line covering the entire line of high-end medical imaging equipment, and has an exclusive core technology of the enterprise.
Since its establishment, Lianying has rapidly developed into a domestic medical imaging equipment head enterprise, in September 2017, Lianying completed a round of financing of 3.333 billion yuan, which also created the largest single private financing in China's medical imaging equipment industry, with a post-investment valuation of up to 33.333 billion yuan. In March 2020, Lianying Medical ranked 37th in the "2020 Hurun China Top 100 Health Private Enterprises" with a market value of 35 billion yuan, and in August, the "Suzhou High-tech Zone • 2020 Hurun Global Unicorn List" was released, and Lianying Medical ranked 70th. From these data, it is enough to see the development potential and growth rate of Lianying Medical, as the ceiling-like existence of the domestic medical imaging equipment industry, what kind of changes will The listing of Lianying bring to the entire industry market? We'll see.
Late but late
United Pictures lived up to its mission
All along, the mainland medical imaging equipment mainly relies on imports from abroad, high-end medical imaging equipment market is monopolized by GE Healthcare, Siemens Healthcare and Philips Medical and other foreign-funded enterprises, in the high-end PET/CT, MR and CT and other product markets, imported brands once occupied more than 90% of the market share.
The country has also realized this problem, so the construction of "Healthy China" has been elevated to a national strategy, and now the rapid expansion of the mainland health market, the increase in support for the high-end medical imaging industry, and the normalization of the prevention and control of the new crown epidemic have all promoted the potential demand for medical imaging equipment. With the blessing of national policies and the increase in the demand for domestic imaging equipment market, Lianying Medical has grown rapidly, and tries to break the market pattern in which domestic medical imaging equipment is monopolized by the GPS of the three giants of foreign imaging equipment. Judging from the relevant data, United Film broke through the game successfully, although there was a delay in time, but United Shadow did not live up to its mission.
According to the data of China Insight Consulting, in 2020, according to the number of new units, the ranking of MR, CT, PET/CT, PET/MR and DR products is in the forefront of the industry, of which MR products rank first in the domestic new market share, 1.5T and 3.0TMR rank first and fourth respectively; CT products rank first in the domestic new market share, 64 ranks below CT ranks first, 64 rows and above CT ranks fourth; PET/CT and PET/ MR products ranked first in the new domestic market share, and DR and mobile DR products ranked second and first in the new domestic market share respectively.
Products, sales almighty
The ceiling of the domestic medical imaging industry
On the product side, Lianying Medical has basically achieved the national leading level in mid-range MR, mid-to-high-end CT, PET-CT/PET-MR, radiotherapy equipment, and image cloud. So far, Lianying has launched a variety of superconducting MR products such as 1.5T and 3.0T, which can meet the needs of different market segments from basic clinical diagnosis to high-end scientific research, of which many products are the first in the industry or the first in China.
Its CT product line has also covered clinical economic products and high-end scientific research products, which can meet the diversified needs of disease screening, clinical diagnosis, scientific research and so on. In terms of XR products, Lianying has launched a number of representative products. In addition, Lianying also has MI products including PET/CT and PET/MR, which should be said to be one of the few enterprises in China that have obtained PET/CT product registration and achieved mass production of the whole machine, and the technical level is in the leading position in the industry.
Figure 2 Specific products and uses of United Pictures Medical (Source: United Pictures Prospectus)
On the sales side, Lianying adopts the direct sales and distribution models to create a diversified three-dimensional marketing system covering domestic and foreign markets, from top three hospitals to grass-roots institutions. Its products have been settled in nearly 900 top three hospitals, according to the "2020 China Hospital Ranking - National Comprehensive Ranking" released by the Institute of Hospital Management of Fudan University, of which the top 10 medical institutions in the country are all users of Lianying.
Figure 3 Sales revenue of the main business of United Pictures Medical according to the classification of sales model (Source: United Pictures Prospectus)
In terms of overseas markets, as of the end of June 2021, Lianying has established sales networks in many countries and regions around the world such as the United States, Japan, Poland, Australia, New Zealand, and South Korea, and its products have successfully entered the United States, Japan, New Zealand and other countries.
From the above data, it can be seen that Lianying is an all-round player in product research and development and product sales, which can be described as a ceiling-like existence in the domestic medical imaging equipment industry.
Changes in market supply and demand under the epidemic
Lianying achieved a turnaround
2020 is an important turning point for United Pictures Medical, due to the outbreak of the epidemic in the same year, overseas supply chains are difficult to supply, United Pictures Medical has seized market opportunities, its CT, XR sales amount doubled year-on-year, driving the annual revenue to a new high in turnover, reaching 5.761 billion yuan, an increase of 93.93% year-on-year, so that United Pictures achieved a turnaround.
From the perspective of main business income, during the reporting period, the revenue of Lianying Medical was 2.035 billion yuan, 2.979 billion yuan, 5.763 billion yuan and 3.085 billion yuan, respectively, with a compound growth rate of 68.27% from 2018 to 2020.
Figure 4 Revenue of United Pictures Medical during the reporting period (Source: United Pictures Prospectus)
In addition to the uncontrollable external factors of the epidemic, the reason why United Pictures has been able to achieve rapid revenue growth is closely related to its unsparing high R&D investment, which directly promotes the increase in the number of patents of United Pictures and further accelerates its growth rate. From 2018 to the first half of 2021, the R&D investment of Lianying Medical was 666 million yuan, 690 million yuan, 850 million yuan and 499 million yuan, accounting for 32.73%, 23.17%, 14.76% and 16.17% of the revenue, respectively, and the high R&D investment also gave Lianying a corresponding degree of return.
The market space is large and the advantages are significant
The potential of the co-film is unlimited
According to the data of China Insight Consulting, the global medical device market size has exceeded 440 billion US dollars in 2020, and the mainland has become the world's second largest market with a market share of 23%. The medical imaging equipment where Lianying is located is the segment with the highest technical barriers in the medical device industry, and driven by the dual drive of market demand and policy dividends, it is expected that the market size of medical imaging equipment in mainland China will be close to 110 billion yuan in 2030. From this data, it can be seen that the joint shadow is still promising in this space.
In addition, compared with competitors, Lianying has its own significant advantages, which are undoubtedly an excellent weapon for its market share. Its competitors mainly include GE Healthcare, Siemens Medical, Philips Medical, Elekta, and Domestic Wandong Medical, Mindray Medical and Neusoft Medical.
Internationally, GE Healthcare is the world's leading provider of medical imaging, monitoring, biomanufacturing and nuclear gene therapy technologies, Siemens Healthers is one of the leaders in diagnostic imaging, Philips Healthcare has expertise in cardiology, oncology, critical care and women's health, and Elekta provides radiation therapy-related equipment and clinical management services for cancer and brain diseases.
At present, in the mainland medical imaging equipment industry, the low-end product market has gradually realized domestic substitution, but the high-end product market is still dominated by imports, which means that Lianying is facing fierce market competition, on the other hand, it also shows that there is a piece of "land" that has not yet been cultivated for Lianying.
In China, Wandong Medical specializes in the research and development, manufacturing and production of imaging medical devices, Neusoft Medical is mainly engaged in the research and development, production, sales and related solutions and services of large-scale medical diagnosis and treatment equipment, and Mindray Medical is mainly engaged in the research and development, manufacturing, marketing and service of medical devices. Compared with the other three competitors, United Pictures Medical has a complete product line layout comparable to GE Healthcare, Siemens Healthcare and Philips.
It is a leading medical technology enterprise in China and one of the few medical technology enterprises in the world that has mastered the core technologies of high-end medical imaging diagnostic products, radiation therapy products and life science instruments, and has the whole life cycle management capabilities of products from research and development, production, sales to after-sales maintenance, and its advantages are very obvious.
First of all, Lianying has formed a rich product line around high-end medical imaging equipment, which can meet the needs of preclinical research to diagnosis to treatment. Secondly, Lianying has a strong comprehensive research and development capability, one is reflected in its vertical research and development system, and the other is in its platform-based research and development model. Third, Lianying has a complete intellectual property layout. It has established a sound database and intellectual property management platform to realize the platform management of the whole life cycle of intangible assets. As of the end of June 2021, Lianying has more than 2,300 authorized patents, more than 500 registered trademarks, and more than 230 computer software registration rights and 11 works copyrights. The intellectual property system is the core support for technological innovation, and it is also an important guarantee for the sustainable development and globalization of enterprises.
Judging from the vast space that still exists in the market and the significant advantages of Lianying Medical, its development potential is huge. Lianying Medical tries to break the situation that the domestic medical imaging equipment industry is monopolized by imported brands, and from the data point of view, Lianying, the late breaker, is a successful breaker. Nowadays, the domestic medical imaging equipment industry is constantly achieving the goal of shoulder to shoulder with well-known foreign brands, we believe that the four leading enterprises of the national team work together, the localization process of medical imaging equipment in the mainland will accelerate, and the complete localization of medical imaging equipment in the mainland may not be long.
Written by | Muzijiu
Typography | Qiao Weijun
End
Resources:
[3] How should Chinese medical imaging companies break the "GPS" of the international big three? http://blog.sina.com.cn/s/blog_7153347a0102wnq6.html
[4] Lianying Medical: The first medical image, the last of the four kings of the instrument is about to appear https://xueqiu.com/2690824851/207636534
[5] National heavy equipment, large-scale medical imaging equipment: Lianying Medical
https://xueqiu.com/4777061674/207791469
[6] Comparison between Wandong Medical and Lianying Medical
https://xueqiu.com/1944137583/207899951?sharetime=2
[7] Interpretation of the prospectus of Lianying Medical (A21725.SH).
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