Yangtze River Business Daily reporter Pan Ruidong
Healthcare equipment company SWS (688410.HK) SH) was under pressure in the first quarter.
A few days ago, SWS released a quarterly report, the company achieved a total operating income of 162 million yuan, a year-on-year decrease of 16.03%, a net profit attributable to the parent company (hereinafter referred to as "net profit") of 34.2325 million yuan, a year-on-year decrease of 54.1%, and a gross profit margin of 47.08%, a decrease of 9.76 percentage points compared with 56.84% in the same period last year.
Regarding the decline in performance, the company said that it was mainly due to the occasional higher sales revenue of high-gross margin products continuous blood purification equipment (CRRT) in the same period of 2023.
According to the company's 2023 annual report released on the same day, since its listing on December 26, 2022, SWS's IPO fundraising project has progressed relatively slowly. 23,000 yuan was invested in the industrialization project of blood purification equipment and high-value consumables, 0 yuan was invested in the construction project of blood purification R&D center, 6.7765 million yuan was invested in the construction project of marketing network upgrade and remote operation and maintenance service platform, and the supplementary working capital is the project with the largest amount of investment, with an investment of 123 million yuan. Roughly calculated, the total investment of the four IPO projects is 130 million yuan, accounting for 12.14% of the total committed investment of the adjusted raised funds.
In the first quarter, revenue and net profit both declined
According to the data, SWS has developed continuous blood purification equipment (CRRT), hemodialysis machine and hemoperfusion machine based on the key core technology of original blood purification equipment, and independently developed blood purification consumables such as hemodialysis concentrate, hemodialysis dry powder and hemodialyzer, which are widely used in the treatment of various acute and chronic renal failure, uremia, multi-organ failure and poisoning.
In August 2016, SWS was listed on the National Equities Exchange and Quotations (NEEQ), and in October 2018, it terminated its listing and turned to the IPO of the Science and Technology Innovation Board. On December 26, 2022, SWS was listed on the Science and Technology Innovation Board.
From 2015 to 2019, SWS's main business had been in a loss-making state before the IPO. In 2020, SWS began to make a profit. From 2020 to 2022, the company achieved operating income of 254 million yuan, 283 million yuan, and 382 million yuan respectively, and net profit of 20.6167 million yuan, 19.4733 million yuan, and 59.237 million yuan. Among them, the year-on-year growth rates of revenue and net profit in 2022 will be 34.85% and 204.2% respectively.
On April 25, SWS released its 2023 annual report, with revenue of 690 million yuan, a year-on-year increase of 80.65%, a net profit attributable to the parent company of 194 million yuan, a year-on-year increase of 228.34%, and a non-net profit of 176 million yuan, a year-on-year increase of 264.90%.
SWS said that the company has achieved product sales growth by vigorously promoting technological innovation, new product layout, performance improvement, etc., and with the launch of new products of blood purification consumables, continuous blood purification pipelines, hemodialyzers, and disposable hemoperfusions, the company's operating income and profitability have continued to grow.
A reporter from Changjiang Business Daily noticed that the sales revenue of blood purification consumables in SWS increased from 76.7844 million yuan in 2022 to 102 million yuan in 2023, a year-on-year increase of 32.99%. However, the largest increase is still in blood purification equipment, which has doubled from 242 million yuan in 2022 to 528 million yuan in 2023.
On the same day, SWS released its first-quarter performance report, and the company's performance reversed in the first quarter of this year, with both revenue and net profit attributable to the parent company declining.
According to the data, in the first quarter of 2024, the company will achieve revenue of 162 million yuan, a year-on-year decrease of 16.03%, a net profit attributable to the parent company of 34.2325 million yuan, a year-on-year decrease of 54.1%, and a non-net profit of 28.9998 million yuan, a year-on-year decrease of 59.2%. At the same time, the company's net cash flow from operating activities plummeted by 99.34% to only 327,300 yuan.
The company said that it was mainly due to the impact of the critical capacity building policy in the first quarter of 2023, the company's high-gross margin product continuous blood purification equipment (CRRT) sales revenue was higher, and SWS attributed this factor to incidental matters.
In the first quarter of 2024, SWS's gross profit margin also decreased from 56.84% in the same period last year to 47.08%, a year-on-year decrease of 9.76 percentage points.
The progress of IPO fundraising projects has been slow
From the perspective of revenue area, last year, SWS's domestic and foreign revenue growth rate was relatively fast.
According to the 2023 annual report, the company's domestic revenue for that year was 591 million yuan, a year-on-year increase of 78.95%, accounting for 85.63% of revenue, and in the same period, overseas revenue was 98.9877 million yuan, a year-on-year increase of 91.65%, and the proportion of revenue rose to 14.34%.
Last year, SWS increased its efforts to expand overseas markets, increased overseas sales in emerging countries and regions with greater market potential such as India and Africa, and added 6 overseas blood purification equipment registration certificates for the company's products during the reporting period. SWS said that at present, the company's products have been sold to 75 countries and regions around the world.
In the first quarter of 2024, SWS's overseas revenue continued to increase. Excluding the impact of occasional factors in the first quarter of 2023, from a quarter-on-quarter perspective, the company's revenue in the first quarter of 2024 increased by 41.58% quarter-on-quarter, of which overseas revenue increased by 257.17% quarter-on-quarter, and domestic revenue was not as good as overseas, with a quarter-on-quarter increase of only 18.41%.
It should be noted that it has been more than a year since it was listed, but SWS's IPO fundraising project has been progressing slowly. In December 2022, SWS raised 1.169 billion yuan in its initial offering, with a net fundraising of 1.067 billion yuan after deducting related expenses, which is planned to be invested in the industrialization project of blood purification equipment and high-value consumables, the construction project of blood purification R&D center, the construction project of marketing network upgrade and remote operation and maintenance service platform, and the replenishment of working capital.
As of the end of 2023, only the replenishment of liquidity has been completed among SWS's fundraising and investment projects, with an investment completion rate of 102.32%.
Roughly calculated, the total investment of the four IPO projects is 130 million yuan, accounting for 12.14% of the total committed investment of the adjusted raised funds.
The industrialization project of blood purification equipment and high-value consumables invested 23,000 yuan, the investment in the construction project of the blood purification R&D center was 0, and the investment in the construction project of marketing network upgrade and remote operation and maintenance service platform was 6.7765 million yuan, and the overall investment of these three investment projects was 6.7995 million yuan, accounting for only 0.64% of the total investment of the adjusted raised funds, less than 1%.
Exclusive In-Depth Recommendations:
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