Source: Instrument House, it may not be reproduced without authorization, and it can only be reproduced after 24 hours.
As the "first brother" of domestic medical devices, Mindray has been deeply cultivating the domestic market while continuously expanding to overseas markets, and has created a "Chinese business card" of global medical devices with its own hard-core development strength.
At present, Mindray Medical has once again increased its overseas layout. On May 11, Mindray Medical released a record of investor relations activities, showing that the company expects at least 10 overseas localized production to be launched by the end of this year. At the same time, Mindray also responded to questions related to its global layout.
01
Production lines in 2024
There are opportunities for blockbuster products
A few days ago, Mindray responded to the overall demand of the domestic market and the slowdown in the growth rate of the domestic market in the first quarter of 2024.
Mindray Medical said that the progress of the company's various businesses in the first quarter of 2024 was basically in line with expectations, and the relatively low revenue growth rate was mainly affected by the base. Since 2020, orders have been unevenly distributed in each quarter due to the pandemic's disruption to purchasing demand, and the sharp fluctuations in market demand in the first half of 2023 have exacerbated the uneven distribution, accounting for 53% of annual revenue in the first half of last year and only 47% in the second half of the year, while the proportion of revenue in the first half of the year in normal years is usually slightly lower than in the second half of the year.
From the perspective of the external environment, since 2024, the rectification activities of the domestic medical industry have gradually become normalized, and the medical equipment renewal project is expected to contribute from the second half of the year, while there is still a lot of room for increase in the share of the international market.
From an internal point of view, there are opportunities for the volume of blockbuster products in each production line this year, such as the consumables business of minimally invasive surgery, such as ultrasonic knife and laparoscopic staplers; Chemiluminescence is expected to add about 20 new core projects to contribute significantly to the growth of reagent output; The newly installed capacity of the fully self-developed and self-produced TLA assembly line MT-8000 is expected to exceed the historical installed capacity; The ultra-high-end ultrasound Resona A20 will accelerate the breakthrough of ultrasound business in high-end hospitals around the world while increasing volume.
Therefore, on the whole, Mindray is confident that it will achieve its growth target for the whole year, and its revenue growth will accelerate in the second half of the year.
02
At least 10 overseas localized production starts
In addition, some investors asked that the medical device industry is a strategically important industry for a country, and the European and American markets are also important incremental markets for the company. In this regard, is there a risk that Mindray will be sanctioned by Europe and the United States?
Mindray said that it has always actively practiced the concept of free trade, strictly abided by the laws, regulations and regulatory requirements of various countries around the world, and participated in market competition with legal compliance as the bottom line. After more than 20 years of hard work, the company has laid out a team of more than 1,000 people in the European and American markets, including marketing, service, IT, human resources, finance and other functions. At the same time, the core demands of the European and American markets to pursue more valuable product solutions due to the need to control medical expenses have not changed, which is highly consistent with the value that Mindray's digital and intelligent solutions can provide.
Looking ahead, the ever-changing international environment may be a long-term development trend for the company, which is both a challenge and an opportunity for an enterprise that is determined to go global, but Mindray has the confidence and ability to do a good job in international business.
First of all, the vast majority of governments and medical institutions around the world aspire to improve the quality and efficiency of medical care and reduce costs, and Mindray is gradually beginning to lead in meeting clinical needs through multi-dimensional technological innovation, while the quality and cost advantages brought by China's strong engineering capabilities will exist for a long time in the future.
Secondly, after more than 20 years of overseas business development, Mindray has cultivated a set of relatively mature organizational capabilities, which are formed through a large number of experiences and lessons in a certain time window. Through a combination of internal and external methods, the company expects to start at least 10 overseas localized production by the end of this year, which is of great significance for accelerating Mindray's breakthrough in overseas public markets and medium and large sample size customers.
03
Mindray's advantages in digital intelligence around the world
Considering that the global economic environment is facing many challenges, and under the inevitable trend of population aging, both developed and developing countries have strong demands for medical cost control, cost reduction, quality and efficiency improvement.
Compared with international medical device giants, Mindray's digital intelligence construction is based on a broad business layout and large-scale stock installation, Mindray has achieved the deep integration of clinical data, medical equipment, and IT systems, built an open and growing "Sanrui" ecosystem, opened up the data silos between devices, brought significant clinical value and management value to medical institutions, and helped Mindray go through the first two stages of digital and intelligent transformation.
At present, the medical industry is facing the singularity moment of AI+, and in order to better meet the clinical requirements, medical device companies represented by Mindray have taken the lead in the next stage of digital and intelligent transformation, and the industry will enter the stage of digital intelligence ecology in which AI fully empowers clinical practice.
Due to the solid accumulation of capabilities in the first two stages, as well as a deep understanding of the pain points and clinical needs of the industry, Mindray is expected to be in a leading position. Mindray said that in the future, digital intelligence will become a new driving force for its sustained, high-speed and high-quality development, and lead Mindray to attack a higher industry position in the world.
04
Layout of overseas markets for more than 20 years
Continue to break through the high-end customer base
According to the data, Mindray has adopted an independent R&D model and has established a R&D and innovation platform based on global resource allocation, with ten R&D centers in Shenzhen, Wuhan, Nanjing, Beijing, Xi'an, Chengdu, Silicon Valley, New Jersey, Seattle and Europe. It has subsidiaries in about 40 countries overseas, and its products are exported to more than 190 countries and regions.
Throughout 2023, Mindray has obtained a large number of orders with its high-quality quality and perfect services, and its monitoring, testing, ultrasound products and overall solutions have entered more high-end hospitals, group hospitals and large chain laboratories, accelerating its breakthrough in the public market and high-end customer base in various countries.
In the field of life information and support, Mindray has broken through nearly 300 new high-end customers, and more than 500 existing high-end customers have achieved horizontal breakthroughs in more products. In the field of in vitro diagnostics, Mindray has broken through more than 450 new high-end customers, in addition to more than 110 existing high-end customers who have achieved horizontal breakthroughs in more products, covering some of the top local teaching hospitals/large laboratories. In the field of medical imaging, Mindray has broken through more than 200 new high-end customers, and in addition to more than 120 existing high-end customers, more horizontal breakthroughs have been made.
Tested by the needs of high-end medical institutions, Mindray has polished many high-quality products and innovative solutions. At present, Mindray's monitors, anesthesia machines, blood cells, biochemistry, ultrasound and other products have a leading market share in the world.
In fact, spring planting and autumn harvest are not an overnight thing. Such fruitful results are the result of Mindray's continuous efforts in overseas markets for more than 20 years.
As early as 2000, Mindray began its international development layout. At that time, European and American companies generally did not attach much importance to the low-end product market and the market of developing countries, and local enterprises had not yet risen. Mindray has rapidly opened up overseas markets with highly competitive products and solutions.
In 2006, Mindray began to set up subsidiaries or offices overseas, and gradually established a marketing team to further open up markets in developed countries. Walking into high-end medical institutions is inseparable from the mastery of cutting-edge core technologies. In 2013, Mindray acquired Zonare, a leading company in Silicon Valley's high-end color ultrasound technology, and launched China's first high-end color ultrasound through the integration of its scanning technology, thus entering the camp of global imaging technology leaders.
Previously, some researchers said that Mindray's internationalization strategy path is from difficult to easy. Looking back now, from opening overseas markets to consolidating the market foundation and entering the high-end customer base, Mindray Medical has written a strategy of "bitter first and then sweet" overseas expedition.
So, how can Mindray maintain the creativity and competitiveness of domestic brands in the era of big waves and sands, and "go overseas on an expedition" while deeply cultivating the domestic market, so as to give the industry continuous confidence and bring technological innovation to the industry? The home of equipment will continue to pay attention.