Recently, there is a listed company that is particularly hot, I believe many people have heard of it, and it is also on the hot search.
He is the Jiuan Medical Center that has done the testing business to the United States.
The author wanted to write about this company. Because, Jiuan Medical may be the most dramatic case in China's entrepreneurial story.
There's a lot of stuff in there that's worth thinking about.
One
If you have not heard of the friends of Jiuan Medical, I will first tell you about their background.
Jiuan Medical is a company founded in 1995, you read it right in 1995. When checking this company, the author was stunned, 1995 to now there are 27 years, I believe everyone is also curious, why 27 years today is out of the circle.
I'll tell you this story later.
The founder of Jiuan Medical is named Liu Yi, the author has been a financial media reporter for 10 years, never heard of such a person, fame and the author wrote earlier "50 billion unicorns no one to take over, 70-year-old Liu Shuwei called for help, another entrepreneurial group can not blow down" in the Royole Technology founder Liu Zihong, fame "worlds apart", can be described as a mud, a sky.
In short, Liu Yi is nameless. Why is he nameless? One is that Jiuan Medical was not hot before, and the other is that he is low-key.
Relevant information shows that Liu Yi was born in Anhui in 1967, graduated from Tianjin University majoring in analytical instruments, and served as a class president and student council president during college. After graduation, I went to work in an instrument factory and worked for a year to go south.
In a private enterprise that does medical equipment, from ordinary employees to executives.
Overall, Liu Yi's experience is not outstanding, and the wonderful path of coming out of the Qingbei, running to Stanford in the United States to study, working at the world's top technology giants, and returning to China to start a business and attract financing is completely opposite.
Liu Yi's experience is very ordinary, but it is in line with the logic of a person's entrepreneurship.
So, why did Liu Yi resign from private enterprise executives?
On this issue, I consulted a lot of information and found some clues from my peers. "When Liu Yi left the private enterprise, he felt that China lacked independent medical device products, and he did not think that foreign products should be stronger than China."
Because this statement is similar to anecdotal rumors, it can only be used as a clue for Liu Yi to choose to start a business.
In 1995, Liu Yi returned to Tianjin and called on his classmates with some ability to have a meal together, talking about his idea of starting a business, as for what to do, he wanted to make an electronic blood pressure monitor. After a meal, he and some of his classmates set up Jiuan Medical.
Some dramatic content begins to appear below, and it is recommended not to be "angry".
From 1995 to 2004, the company did not have any storm in the domestic medical device market.
It was not until 2005, after Liu Yi and his team opened up the German market, that the company improved.
Writing this, is it not a little "strange"? For this question, I consulted an older media person.
He said this: "At that time, domestic medical device companies were accustomed to domestic sales of overseas products, and the domestic market had a high awareness of overseas brands. In other words, everyone may like to buy foreign goods, and it is difficult for a private company like Jiuan Medical to have a market."
The author feels that it makes a lot of sense. Just like before, we all liked to eat foreign food, buy Nike and Adi's shoes, use foreign goods, and feel cattle. In recent years, consumer awareness has increased, domestic products have risen, and domestic brand sales have slowly slowed up.
If you go back to the era of Jiuan Medical, it may not be surprising that you do not buy their products. Liu Yi and the team want to eat and develop, they run abroad to open up the market, and the result is that the Germans are looked at and buy a large number of electronic blood pressure monitors.
Two
Although there is a German market, Jiuan Medical is still unremarkable in China.
The cost of transnational business is too high, so the company has been losing money.
It wasn't until 2010 that the dramatic scene resurfaced.
Apple will actually cooperate with Jiuan Medical. The reason is that the latter made the world's first tool that can perform blood pressure tests on iPhones and iPads. Originally, in the quiet 5 years, Liu Yi and the team started medical intelligent software and hardware equipment.
The key is that they got the approval of Apple and rode the East Wind to silicon Valley in the United States to open a subsidiary.
The English brand of that subsidiary was called "iHealth". Remember this in English, he will do wonders.
Many people know that the now famous Xiaomi is a company established in 2010 by Lei Jun influenced by Jobs and feeling that the intelligent storm will sweep the world. According to the time calculation, Jiuan Medical's products were recognized by Apple in 2010, which is simply incredible.
What kind of character is Liu Yi? In an era when intelligence was underdeveloped, his foresight was beyond imagination.
Then came another dramatic scene.
I heard that some Chinese companies have been recognized by the famous Apple and have also opened subsidiaries in the United States.
Some domestic brokers can't sit still.
They lamented, "Almost missed the first stock." They all found Liu Yi and told him that he could seek development through listing.
Isn't that dramatic?
A Chinese company that no one pays attention to in China, cooperates with foreigners, runs abroad to do business, and only attracts attention, to pull them to the domestic listing. Under the training of a group of "masters", Jiuan Medical successfully IPOed in China.
Liu Yi thought that if he was listed in China, he could win the market in China.
Since its listing, Jiuan Medical has held the title of "the first stock of electronic sphygmomanometers in China", but many people think that they are "garbage stocks".
After all, looking at whether a stock is a junk stock or a potential stock, doesn't it look at core competitiveness, market space, performance, and profitability? These elements, it is difficult to see from the financial report of Jiuan Medical that they are brilliant.
Electronic sphygmomanometers, whether self-developed or not, are not a high-end technology in themselves. As for smart software and hardware, there are more concepts, fewer real goods, more rubbing concepts, less practical things, and Apple does not lack suppliers.
Jiu'an Medical continued to live a mediocre life.
Three
In 2020, the "global black swan" struck, Jiuan Medical grasped the outlet, and the company's business core transformed to the new crown reagent and antigen detection in epidemic prevention products. In 2021, with the help of China's antigen testing export trend, go to the United States to start a new crown business.
Remember the English name "iHealth" that everyone remembered earlier?
It is this subsidiary that has completely changed the face of Jiuan Medical.
"iHealth" has been dealing with Americans for 10 years and has a "civilizing" effect on the US domestic market.
By 2022, Jiuan Medical's antigen test kits, even more remarkable in the United States, are selling crazy.
So, why are Americans willing to buy Jiuan Medical's products?
I think there are two reasons for this: first, American consumers may feel that "iHealth" is an American company, which is just like we think that Haoliyou is a Chinese company; second, the cost-effective, Jiuan Medical's kit is priced at $6.99, which is cheaper than many local companies, and the kit can be collected by itself, and the results can be produced in 15 minutes.
It's cheap and easy to use, so fools don't buy it. In fact, there is a little reason, that is, the United States is expensive, the people do not save money, the consumption power is high, they need about 10 US dollars to eat a fast food, and it is only 6.99 US dollars to buy a kit, which is not expensive at all.
Therefore, Jiuan Medical quickly established a huge market in the United States. According to Jiuan Medical, the monthly production capacity of the kit will reach 100 million copies, and the monthly production capacity will be 200 million copies in 2022. What concept? The U.S. has a population of 330 million and a monthly production capacity of over 100 million, which is equivalent to one-third of the total U.S. population, which may have used Jiuan Medical's kit products.
This data made Jiuan Medical profitable in the first quarter of 2022, shocking everyone. According to the performance forecast released by them, the company's net profit is expected to reach 14 billion yuan - 16 billion yuan, an increase of more than 367 times year-on-year.
The quarterly data is divided into days, that is, a net profit of 150 million yuan a day, this data is too cattle.
Jiuan Medical also issued an announcement on the evening of April 17, saying that their subsidiary has the latest contract progress. Under various favorable circumstances, the stock price of Jiuan Medical increased by 15 times in half a year, and the stock price fell slightly on April 19, but the tail market rose significantly.
"Too profitable", "the king of demon stocks", this is the title given to him by the financial media. What the author sees is that a company that has been in a difficult situation and has survived for 27 years has come to run because of "luck" and draws a beautiful question mark for 27 years of payment.
Just like the author mentioned at the beginning, Jiuan Medical is a dramatic case, and there is a lot to think about.
The author believes that the long 27-year entrepreneurial journey, for Liu Yi and the team, is definitely more dangerous than the opportunity, and even incomparably difficult, even if a hurdle is not carried, they cannot have the current results.
This mentions the author's previous writing that "50 billion unicorns were not taken over, 70-year-old Liu Shuwei called for help, and another entrepreneurial group could not blow." The author does not have to compare Royole Technology and Jiuan Medical to prove anything.
I just think that instead of saving companies that are bragging, telling stories, and creating no value, shouldn't we pay more attention to the entrepreneurs who are doing things in a down-to-earth manner and are still struggling to move forward?
Hopefully, there will be fewer dramatic cases among entrepreneurs.