On December 20, Chunli medical disclosed the A-share issuance announcement, which means that this domestic orthopaedic device leader, which has been established for 23 years, will take root in the fertile soil of the science and innovation board six years after officially landing on the Hong Kong stock exchange.
As a leading orthopaedic medical device manufacturer in China, Chunli medical is mainly engaged in the R & D, production and sales of implantable orthopaedic medical devices. Its main products are joint prosthesis products and spinal implant products. With the expansion of China's population base and the emergence of the aging trend, Chunli medical under the wave of domestic substitution is facing a broad market.
R & D is an important weight in competition. According to the announcement on online issuance, subscription and winning rate issued by Chunli medical, Chunli medical raised more than 1.1 billion yuan in this listing, which is mainly used for the company's main business related projects to supplement working capital, in order to maintain the company's leading position in the field of joint prosthesis in China, strive to continuously improve the market share, and enrich and improve the orthopaedic product series, In order to realize the sustainable, healthy and rapid development of the company and continuously improve the value of the company.
focus on joint prosthesis, leading the market share
Orthopedic implantable medical devices are one of the important segments of medical devices. According to relevant reports on punctuation information, it is estimated that the market scale of orthopaedic implant medical devices in China will be about 60.7 billion yuan in 2024, and the average annual compound growth rate from 2019 to 2024 will be about 14.51%.
Chunli medical, which is about to become the first dual listed enterprise in the field of medical equipment in China, is one of the leaders. As one of the enterprises with complete medical device registration certificates in the field of joint prosthesis in China, Chunli medical's products not only cover the four major human joint prosthesis products of shoulder, elbow, hip and knee, but also include a full range of product portfolio of spinal internal fixation system. According to the prospectus, Chunli medical holds 46 registration certificates and filing certificates for the production of medical devices in China, including 14 Class III medical device registration certificates, 4 class II medical device registration certificates and 28 class I medical device filing certificates.
The diversified product portfolio keeps the income of Chunli medical at a high level. From 2018 to 2020, the average annual compound growth rate of Chunli medical operating revenue reached 37.23%. In the first half of this year, Chunli medical achieved a revenue of 483 million yuan, a year-on-year increase of 18.57%. Among the main business income, the income of joint prosthesis products was about 459 million yuan, a year-on-year increase of 15.45%; The revenue of spine products was 18.5354 million yuan, a year-on-year increase of 104.22%.
In terms of profitability, Chunli medical achieved a gross profit of 369 million yuan in the first half of this year, a year-on-year increase of 28.18%; The net profit attributable to the parent company was 156 million yuan, a year-on-year increase of 33.22%; The basic earnings per share was 0.45 yuan, a year-on-year increase of 32.35%.
The strong growth momentum stems from the competitive advantage and broad market of Chunli medical joint prosthesis products. At present, Chunli medical joint prosthesis products account for more than 95% of the operating revenue, and have established a high brand awareness in the industry; At the same time, such products occupy a large market share in China.
According to the relevant reports of punctuation information, in 2019, the market segments of trauma, spine and joint accounted for 85.80% of the market share in China's orthopedic implantable medical devices market; As one of the three major market segments, joints account for 27.77%; Chunli medical occupied 8.96% of the market share of China's joint implant medical device market in 2019, ranking second among all local enterprises and fourth among all enterprises in China's joint prosthesis industry (including foreign enterprises).
take the spring breeze of policy and adapt to market changes
In recent years, with the introduction of "healthy China 2030" planning outline, made in China 2025 and other documents, Chinese medical device enterprises have gradually got rid of the situation of relying on imports of high-end medical devices, and are facing a change from quantity to quality, from imitation to brand building. Policy guidance makes Chunli medical, which ranks among the top in the industry, reap a larger market, but it also requires it to dare to innovate and comply with market changes.
For example, the promotion of the "two vote system" policy has brought certain changes to the sales model of Chunli medical and enterprises in the same industry. In this regard, Chunli medical has expanded the two ticket distribution model on the basis of the traditional distribution model, and the improvement results of the distribution network are reflected in the sales volume of terminal medical institutions.
From 2018 to the first half of 2021, the number of terminal medical institutions sold by Chunli medical products showed an increasing trend, namely 3206, 4150, 4579 and 4210 respectively. According to the type of medical institutions, the company's products are mainly sold to public hospitals. From 2018 to the first half of 2021, the proportion of the company's products sold to public hospitals was 93.87%, 93.74%, 93.47% and 94.23% respectively. According to the level of medical institutions, the company's products are mainly sold to large and medium-sized hospitals. From 2018 to the first half of 2021, the proportion of the company's products sold to tertiary or secondary hospitals was 93.74%, 92.78%, 92.88% and 93.56% respectively.
In China, Chunli medical's huge distribution network covers the whole country and penetrates many hospitals throughout the country; Overseas, Chunli medical has successively obtained registration certificates from many countries and adopted the sales mode of overseas distribution, ODM and OEM. Its products are exported to many countries and regions in Asia, Africa, Europe, South America and other continents.
The centralized procurement is another change faced by Chunli medical this year. However, from the results, the 80% decline in the price of artificial joint products is milder than that of coronary stent, which is better than expected. Chunli medical actively participated in the centralized purchase, and all three categories of hip products won the bid. Considering that the company's sales revenue of hip prosthesis products accounted for 71.64% of the total revenue in 2020, Chunli medical is expected to rapidly increase China's market share under a reasonable profit space, and the product sales ushered in a new large-scale growth.
In addition, when the market slowly "desensitizes" the normalized centralized mining, the value of Chunli medical as the leading target is faced up again, and its harvest in centralized mining will further appear.
increase R & D and innovation and help domestic substitutes
In order to maintain its market competitive advantage, Chunli medical has always adhered to the R & D positioning in recent years, continuously improved its development potential, and has sufficient ability to develop innovative products and continuously improve R & D.
The prospectus shows that Chunli medical has invested more than 60 million yuan in R & D in the past three years, accounting for 7.24% of the recent operating revenue; In the first half of this year, the company invested 34.2293 million yuan in R & D expenses, a year-on-year increase of 8.38%. Meanwhile, as of June 30, 2021, the number of Chunli medical R & D personnel was 196, accounting for 21.78% of the total number of employees, more than 20%.
As of June 30, 2021, the company has 179 domestic patents, including 20 invention patents, 158 utility model patents and 1 design patent. In addition, Chunli medical is the first and only enterprise in China to introduce relevant damis (anterior approach minimally invasive hip Technology) and European advanced minimally invasive technology. The company has also developed China's first handheld orthopedic Siasun Robot&Automation Co.Ltd(300024) system, which will break the rigid situation of shortage of intelligent domestic medical devices and start a new journey of precision medicine in China.
According to the prospectus, the project is an extension of the existing business and is in line with the company's long-term development plan, that is, on the one hand, continue to maintain the leading position in the field of joint prostheses in China and strive to continuously improve the market share; On the other hand, we will enrich and improve the orthopedic product series to achieve sustainable, healthy and rapid development and continuously improve the value of the company.
This is of great value in promoting the substitution of domestic devices for imports. It can be predicted that after landing on the scientific innovation board, Chunli medical will not only obtain the help of capital, but also accelerate the domestic substitution process with high-quality development, so as to inject new strength into the independent innovation of local orthopedic medical device enterprises.
(Daily Economic News)
