Source: Equipment Home (part of the information is compiled from the announcement of Wego Group and the Economic Herald)
On April 8, Weigao Group Co., Ltd. (hereinafter referred to as "Weigao Group") issued an announcement on the change of directors, according to the "Resolution of the Shareholders' Meeting of Weigao Group Co., Ltd.", the composition of the board of directors of Weigao Group was changed from five to seven, and it was agreed that Lian Xiaoming resigned as directors of the company and elected Chen Min, Gao Yu and Cong Rinan as directors of the company for a term of three years. The new board of directors of the company is composed of seven directors: Chen Lin, Tang Zhengpeng, Long Jing, Yan Xia, Chen Min, Gao Yu and Cong Rinan.
After the news was announced, Weigao Group's shares fluctuated little, rising and falling slowly, with a total market value of HK $21.436 billion and a share price of HK $4.69.
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The new board of directors
This change means that Lian Xiaoming, the former director of Weigao Group, has withdrawn, and three new directors have been added, namely Cong Rinan, Chen Min and Gao Yu.
Biographies of the three new directors
Chen Min: female, born in July 1968, native of Shanghai, member of the Communist Party of China, postgraduate degree. From January 2007 to March 2023, he served as the general manager of Johnson & Johnson Medical Technology China Orthopedic Division, the vice president of Wego Group since March 2023, and the director of Wego Group since March 2024.
Guo Yu: female, born in May 1973, native of Beijing, bachelor degree. From 1994 to January 1997, he served as an engineer of Beijing Internal Combustion Engine Group Co., Ltd., from January 1997 to February 1998, he served as a software engineer of AsiaInfo Technology Co., Ltd., and from February 1998 to March 2017, he served as a partner of Mercer Consulting (China) Co., Ltd. From March 2017 to April 2020, he served as the head of human resources of Qianhai Reinsurance Company, from September 2020 to October 2021, as the COE of Gome Group, from July 2022 to January 2023, as the director of human resources of Wego Group, from January 2023 to the present, as the vice president of Wego Group, and from March 2024 to the present, as a director of Wego Group.
Cong Rinan: male, Han nationality, born in January 1981, Han nationality, from Weihai City, Shandong Province, master's degree, member of the Communist Party of China. He joined the Company in September 2003 and successively served as the workshop director, deputy manager and Manager: Assistant to the General Manager of the Medical Products Company from January 2014 to December 2014, Deputy General Manager of the Medical Products Company from January 2015 to December 2018, General Manager of the Medical Products Company from January 2019 to December 2019, General Manager of the Medical Products Industry Group from January 2020 to December 2023, Vice President of the Group from January 2024 to the present, Director of the Group from March 2024 to the present.
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Wego Group's financial data has been good in recent years
According to public information, Weigao Group was founded in 1988 and is currently committed to the development of medical devices and pharmaceutical business, linkage development of construction, finance and other industries, under the jurisdiction of medical products, orthopedics, blood purification, Purui, medical business, pharmaceutical, surgery and other industrial groups.
Judging from the financial data provided by Qichacha, from 2020 to 2022, Weigao Group achieved operating income of 22.781 billion yuan, 25.891 billion yuan and 28.567 billion yuan respectively, and total profits of 3.028 billion yuan, 2.794 billion yuan and 2.827 billion yuan respectively. In the first three quarters of 2023, Weigao Group achieved an operating income of 21.597 billion yuan and a total profit of 1.937 billion yuan. As of the end of the third quarter of 2023, the total assets of Wego Group were 77.75 billion yuan.
It is reported that Weigao Group has invested in 89 enterprises, of which 72 are in existence or in business, 15 are in the state of cancellation, and 2 are in the state of moving out. Wego Group owns Wego Orthopedics (688161. SH), Weigao Co., Ltd., East China CNC 3 listed companies, as of the close of March 15, the total market value of the 3 listed companies is about 37.255 billion yuan.
03
Wego Orthopedics personnel changes
Recently, there have been considerable personnel changes in Wego Orthopedics. On the evening of March 8, Weigao Orthopedics issued an announcement announcing three major personnel changes, involving the company's chairman, board of directors and other positions.
According to the announcement, due to personal reasons, Mr. Gong Jianbo proposed to resign as a director of the third board of directors of the company, chairman of the board of directors, and a member of the relevant special committee of the board of directors, and after the resignation, Mr. Gong Jianbo will no longer hold any position in the company and its subsidiaries, and Mr. Gong Jianbo will continue to provide valuable opinions and suggestions for the future development of the company as a consultant and shareholder of the company;
Due to work adjustment, Ms. Yan Xia applied for resignation as a director of the third board of directors of the company, and after the resignation, Ms. Yan Xia no longer holds any position in the company and its subsidiaries, and Ms. Yan Xia continues to serve in the enterprise controlled by the controlling shareholder and actual controller of the company;
Due to work adjustment, Mr. Qiu Guoping applied for resignation as a director of the third board of directors of the company and deputy general manager of the company, and after his resignation, Mr. Qiu Guoping still held other positions in the company and was responsible for the relevant operation and management of the subsidiary.
Wego Orthopedics' current performance is also under great pressure, which may have a certain impact on personnel changes. According to the announcement, the decline in net profit was mainly due to pressure on revenue and gross margin. On February 29, Wego Orthopedics disclosed its 2023 annual performance report. According to the data, the company's total operating income was 1.284 billion yuan, a decrease of 37.61% from the previous year. The net profit attributable to the owners of the parent company was 112 million yuan, down 81.29% from the same period last year. After deducting non-recurring gains and losses, the net profit was 104 million yuan, a year-on-year decrease of 82.28%. Basic earnings per share was 0.28 yuan.
With the normalization of the national and provincial and municipal centralized procurement of high-value medical consumables, the three major fields of orthopedic joints, trauma and spine have been included in the scope of centralized procurement of orthopedic medical consumables and have been implemented one after another, which has a significant short-term impact on orthopedic consumables enterprises.
Weigao Orthopedics said that last year, with the implementation of the national orthopedic high-value consumables procurement policy, the sales price of the company's products decreased significantly. This change directly affected the company's main business income and gross profit margin, resulting in a significant decline in operating performance. In addition, the decline in the ex-factory price of products and the discount of the purchase price caused by the gap in the channel inventory. The combination of these factors has led to a decline in the company's sales revenue and gross profit margin, which in turn has affected the overall profit level.
The recent anti-corruption of pharmaceuticals and the major personnel changes of a number of medical device giants have ushered in a new round of shocks in the industry. This also accelerates the reshuffle of the industry and forces enterprises to change. Under the leadership of the new board of directors, how does Wego Group face these industry changes, how to lead Wego to break through?