The total operating income of 36 listed medical device companies including Mindray, Lepu, and Yuyue was nearly 80 billion yuan, an increase of more than 15% year-on-year, and the net profit was about 12 billion yuan.

Source: China Medical Technology Network Cyber ​​Blue Medical Devices

Source: Announcements of listed companies, Zhongcheng Medical Devices

70% of domestic machinery companies saw a net profit growth

The annual report is one of the important contents of information disclosure of listed companies. Listed companies can choose to disclose the annual report at an appropriate time between January 1 and April 30 of the following year.

This article integrates the 2019 annual reports of 36 domestic medical device listed companies that have been published, and uses the data to understand the production and revenue situation of domestic medical device companies.

Overall, 70% of domestic medical device companies saw an increase in net profit in 2019.

The "Medical Device Blue Book: China Medical Device Industry Development Report (2019)" points out that the main operating income of medical device manufacturers is expected to exceed one trillion yuan from 2021 to 2022, and the compound growth rate of my country's medical device industry will continue to remain at around 15%.

Although my country's medical device industry has maintained a good momentum of rapid and healthy development, the product structure has been further optimized, and innovative products have emerged at a faster pace, overall, my country's medical device production and operation enterprises are small and scattered.

Data shows that more than 90% of China's medical device manufacturers are small and medium-sized enterprises, with an average annual main operating income of 30 million to 40 million yuan . Compared with the average annual main operating income of 300 million to 400 million yuan for domestic pharmaceutical companies, there is still a huge gap.

Mindray Medical leads the top three

Judging from the performance of domestic medical device listed companies that have disclosed their annual reports, they generated total operating revenue of nearly 80 billion yuan, a year-on-year increase of more than 15%, and net profit of approximately 12 billion yuan, a year-on-year increase of approximately 3%.

Due to the limitation of the statistical date, the A-share medical device companies that are not shown in the table will be updated and announced after April 30. Data source: Zhongcheng Medical Device Research Institute

Replenish:

Sinocare: In 2019, the company achieved revenue of RMB 1.778 billion, a year-on-year increase of 14.69%, and net profit attributable to shareholders of the listed company of RMB 251 million, a year-on-year decrease of 19.25%;

Giant companies have obvious advantages

Under the pressure of changes in the macro-environment and slowing economic growth, leading medical device companies have begun to focus on improving their ability to resist risks , and the results are gradually emerging.

Mindray Medical's cost control has been effective, and its net profit margin has continued to increase. In 2019, under the dual influence of the US tariff increase in the Sino-US trade war and the price reduction caused by competition in the ultrasound industry, Mindray Medical continued to promote cost reduction and efficiency improvement measures, with significant cost control effects and a continuous increase in net profit margin.

The announcement showed that the company's refined management effects continued to emerge in 2019, with the period expense ratio further reduced by 3.77 percentage points to 32.79% , of which the sales expense ratio decreased by 1.5 percentage points to 21.78%, and the administrative expense ratio decreased by 0.58 percentage points to 4.62%.

Lepu's net profit attributable to shareholders in 2019 was 1.725 billion yuan, up 41.6%. This profit included 480 million yuan in non-recurring gains and losses (including investment income from Junshi Biosciences), but also more than 300 million yuan in goodwill impairment. Excluding the impact of goodwill impairment and non-recurring business, the net profit attributable to shareholders of the listed company was 1.52 billion yuan, up 30.14% year-on-year, in line with the company's 30% growth target after deducting non-recurring items.

Dian Diagnostics uses "short-term pain" to advance long-term strategy. Dian Diagnostics adheres to the strategic positioning of "integrated medical diagnosis service provider" and implements the idea of ​​"profitable income and profit with cash flow". Net profit growth declined in 2019, but the short-term decline may bring healthier business and cash flow.

With its own products as the core, MyBio has continuously improved its operating capabilities and management efficiency. During the reporting period, with MyBio's investment and accumulation in various R&D platforms, a number of new products were launched, and the company launched market promotion and sales channel construction. The sales revenue of its own products maintained steady growth and the profit level increased.

Small and medium-sized companies’ performance is poor

Perhaps due to pressures such as changes in the macro-environment and the slowdown in economic growth, the performance of some small and medium-sized medical device companies has declined.

Among the listed medical device companies that have disclosed their annual reports, more than ten have seen a decline in performance, accounting for as high as 31%, and some have suffered losses.

The performance of the other nine listed companies was mainly affected by factors such as increased sales expenses, adjustment of business structure, increased costs and expenses, and impairment of goodwill.

Comparison of profits and revenues of domestic medical device companies in 2019 (partial)

Due to the limitation of data statistics date, the A-share machinery companies not shown in the table will be updated and announced after April 30.

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