Company code: Shandong Weigao Orthopaedic Device Co.Ltd(688161) company abbreviation: Shandong Weigao Orthopaedic Device Co.Ltd(688161) Shandong Weigao Orthopaedic Device Co.Ltd(688161)
Summary of annual report 2021
Section I important tips
1 the summary of this annual report comes from the full text of the annual report. In order to fully understand the company's operating results, financial status and future development plan, investors should http://www.sse.com.cn./ The website carefully reads the full text of the annual report. 2 major risk warning: the company has described in detail the main risks and countermeasures it will face in the future in this report. For details, please refer to "IV. risk factors" in "section III Management Discussion and analysis" of this report, and investors are invited to pay attention to investment risks. 3 the board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee the authenticity, accuracy and completeness of the contents of the annual report, and there are no false records, misleading statements or major omissions, and bear individual and joint legal liabilities. 4. All directors of the company attended the board meeting. 5 Dahua Certified Public Accountants (special general partnership) has issued a standard unqualified audit report for the company. 6. The company is not profitable and has not yet achieved profitability when it is listed □ yes √ No 7. The profit distribution plan or the plan for the conversion of provident fund into share capital in the reporting period adopted by the resolution of the board of directors
In 2021, the company plans to distribute profits based on the total share capital registered on the date of equity distribution. The profit distribution plan is as follows:
The company plans to distribute a cash dividend of 5.20 yuan (including tax) to all shareholders for every 10 shares. As of December 31, 2021, the total share capital of the company is 400000000 shares. Based on this calculation, the total cash dividend to be distributed is 208000000 yuan (including tax). The amount of cash dividends of the company in this year accounts for 30.13% of the net profit attributable to shareholders of Listed Companies in the consolidated statements of the company in 2021.
The profit distribution plan for 2021 needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation and approval. 8. Whether there are important matters such as special arrangements for corporate governance □ applicable √ not applicable
Section II basic information of the company
1 company profile company stock profile √ applicable □ not applicable
Company stock profile
Stock type stock exchange and sector stock abbreviation stock abbreviation before stock code change
RMB ordinary shares (A shares) Shanghai Stock Exchange Kechuang board Shandong Weigao Orthopaedic Device Co.Ltd(688161) Shandong Weigao Orthopaedic Device Co.Ltd(688161) not applicable
Profile of the company's depositary receipts □ applicable √ not applicable contact person and contact information
Contact person and contact information secretary of the board of directors (domestic representative of information disclosure) securities affairs representative
Name: Xin Wenzhi-
Office address: No. 26, Xiangjiang street, Weihai tourist resort-
Tel: 06315788909-
E-mail [email protected]. -
2. Introduction to the company's main business in the reporting period (I) main business, main products or services
The company is an overall solution supplier of orthopaedic implant consumables. Its main business is the production, R & D and sales of orthopaedic implant medical devices and orthopaedic surgical devices. The company has always been technology and product oriented, focusing on the innovation and R & D of orthopaedic implanted medical devices, and constantly maintaining the update and iteration of products. Its main products cover the fields of spine, trauma, joint, sports medicine and orthopaedic materials of orthopaedic implanted medical devices. It is one of the enterprises with complete categories of orthopaedic products, leading scale and market competitiveness in China.
1. Spine products
The company's spinal products are mainly spinal implant medical devices and vertebroplasty systems.
Spinal implant medical devices are mainly the internal fixation system of cervical spine, thoracolumbar spine (mainly in the form of nail rod or nail sector) and interbody fusion cage, which are used for the treatment of spinal degenerative diseases, spinal fractures, spinal deformities, tumors, infections and other spinal diseases.
The company's vertebroplasty system mainly includes balloon dilation pressure pump, puncture tool, bone expander, etc., which is used for the treatment of osteoporotic vertebral fractures.
2. Trauma products
The company's trauma products are trauma implanted medical devices, which are mainly composed of locking sector system, intramedullary nail system, hollow screw system and external fixation support system. They are mainly used for fracture and orthopedic fixation of limbs, ribs, fingers, ankles, pelvis and other parts. 3. Joint products
The company's joint products are mainly joint implanted medical devices, mainly composed of hip prosthesis system and knee prosthesis system, which are used in the treatment of osteoarthritis, rheumatoid arthritis, femoral head necrosis and other diseases.
4. Sports medicine products
The company's sports medicine products mainly include plants and tool consumables, including cruciate ligament reconstruction system, meniscus repair system and sports trauma system. The main products are suture anchor, meniscus suture nail, peek ligament fixing screw, titanium sector with loop, non absorbable surgical suture, disposable sterile planer / grinding head and so on. It is mainly used to treat the soft tissue between bone and bone, such as Achilles tendon, ligament, meniscus, tendon, cartilage and other trauma.
5. Orthopaedic repair materials
At present, the company's orthopaedic repair material products are mainly polymethylmethacrylate (PMMA) series bone cement, including spinal bone cement series, which is mainly suitable for filling, stabilization and pain relief of vertebral fracture.
6. Surgical instruments
The orthopaedic surgical instruments produced by the company are mainly the instruments and tools used in the process of orthopaedic implantation, which are used together with orthopaedic implantation products.
The surgical instruments produced by the company include instruments and tools supporting self-produced implant products and OEM products produced for Medtronic and other foreign leading manufacturers. Because there are certain differences in the age stage and physiological characteristics of orthopaedic patients, in order to better ensure the accuracy of orthopaedic implantation and improve the implantation effect of orthopaedic products, surgical instruments supporting implants are generally used in orthopaedic implantation. The surgical instruments supporting the company's implants are mainly provided to downstream customers in the form of loan, which can be used with the company's orthopaedic implants to better ensure the accuracy of orthopaedic surgery and improve the implantation effect of products. （2） Main business model
1. R & D mode
The company always adheres to the independent R & D and innovation of technology and products, and actively maintains mutual cooperation with medical institutions, clinicians and scientific research institutions.
The company's R & D process includes project initiation, product development and design, registration and inspection, clinical evaluation, application for registration, etc. The company has always been technology and product oriented, focusing on the innovation and R & D of orthopedic medical devices. After years of painstaking research and development, the company has mastered a number of core technologies, such as barb eccentric trapezoidal thread technology, new embedded saddle shaped compression ring technology, semi open elastic arm percutaneous minimally invasive technology, tissue-specific traction technology and so on, which fully covers the subdivided fields of orthopaedic implant medical devices such as spine, trauma, joint and sports medicine.
2. Procurement mode
The company has formulated a perfect procurement management system to standardize the procurement of raw and auxiliary materials and outsourced processing services. According to the purchase demand, the technical process department and R & D center of the company are responsible for preparing the technical standards of purchased materials. The purchase management department of the company formulates the purchase plan and purchases according to the classification and quota distribution standards of purchased materials. The quality management department of the company is responsible for the quality inspection of purchased materials, and the Finance Department of the company is responsible for reviewing and supervising the purchase budget and fund payment.
3. Production mode
The company mainly carries out inventory production based on the planning of market sales, takes the market demand as the guidance, and establishes safety inventory to meet the needs of customers. The planning department of the company formulates the production plan with the cooperation of the market management department, marketing management department and quality management department. The production department organizes the production and the quality management department completes the product acceptance.
4. Sales model
The sales mode of the company's main products includes distribution, distribution and direct sales. During the reporting period, the company's sales mode was mainly distribution mode.
(1) Distribution mode
The company sells its products to end customers through distributors. The dealer undertakes channel development, customer maintenance, and provides end customers with professional services supporting orthopedic products such as preoperative consultation, logistics distribution, follow-up guidance, cleaning and disinfection, and postoperative tracking, so that the company's products can meet the needs of doctors to the greatest extent. At the same time, the company's marketing team provides medical and industrial integration, product research, some technical and professional support, and works with dealers to complete the development, maintenance and related professional services of end customers.
The company attaches great importance to in-depth cooperation and close coordination with dealers, and has established a perfect dealer system nationwide. Through dealer selection and access standards, the company selects dealers with no illegal business behavior, stable cash flow, strong market promotion ability, rich experience in orthopedic medical device product service, high-quality terminal channel resources, etc. as partners.
(2) Distribution mode
During the reporting period, according to the "two ticket system" implemented in some regions, bidding and procurement policies and the own needs of terminal hospitals, the company sold to terminal hospitals through distributors in corresponding regions.
Under the distribution mode, the company's products are generally sold to distributors with relevant qualifications, and then the distributors sell them to terminal hospitals. The company's product channel development, customer maintenance and professional supporting services in the process of product use are mainly completed by the third-party service provider and the company's own marketing team.
(3) Direct selling mode
During the reporting period, the company's products were sold directly to terminal hospitals, and the income of direct selling mode accounted for a relatively low proportion; At the same time, OEM products of surgical instruments produced by the company are generally sold to downstream customers through direct sales mode. Under the direct selling mode, the company's product channel development, customer maintenance and professional supporting services in the process of product use are mainly completed by the third-party service provider and the company's own marketing team. （3） Industry 1 Development stage, basic characteristics and main technical threshold of the industry
At present, China's medical device industry has entered a stable period of rapid development. In recent years, the state has successively updated and issued a number of laws and regulations, such as the regulations on the supervision and administration of medical devices, the measures for the administration of medical device registration, the outline of the "healthy China 2030" plan and the special plan for scientific and technological innovation of medical devices in the 13th five year plan, so as to strengthen the supervision of the medical device industry and alleviate disorderly competition, Take "localization, high-end, branding and internationalization" as the direction and "minimally invasive, digital and intelligent" as the technical breakthrough, strive to improve the core competitiveness of domestic medical devices and promote the leapfrog development of orthopaedic medical device industry.
With the significant intensification of population aging, the gradual strengthening of public health awareness and the increasing support of the government for the industry, there is still a large market space for the development of orthopedic implantable medical devices in China, which has strong growth potential. The R & D, production and clinical application of orthopedic medical devices involve the professional knowledge of medicine, physiology, materials, physics, engineering, chemistry and other disciplines. It is a knowledge intensive industry with high technical barriers. In addition, the long product R & D cycle and large investment make the threshold of the medical device industry higher. 2. Analysis of the company's industry position and its changes
Over the years, the company has been deeply engaged in the field of orthopedic implant medical devices, complied with the development trend of the industry, and fully grasped the historical opportunity of import substitution of domestic high-end products. At present, the company's products mainly focus on medium and high-end orthopedic implants, and fully cover the economic product market. It has been widely used in more than 1500 hospitals nationwide. According to the relevant research report of punctuation information, in 2019, the company's overall market share in the field of orthopaedic implant medical devices in China ranked first among Chinese manufacturers and fifth in the whole industry, and ranked top in all subdivided fields. Among them, the market share of spine products ranks first among Chinese manufacturers and third in the whole industry, the market share of trauma products ranks second among Chinese manufacturers and fifth in the whole industry, and the market share of joint products ranks third among Chinese manufacturers and seventh in the whole industry. At present, the company has surpassed some foreign-funded enterprises and quickly narrowed the gap with international giants. With leading market scale and industry position, the company is a leading enterprise of orthopedic medical devices in China. The implementation of the national centralized procurement policy is conducive to industry concentration and market share of leading enterprises. The company actively responded to the national policies, established a professional sales team to implement the bidding work of volume procurement, actively promoted the relevant work, tracked, studied, deployed and prepared for the relevant policy developments of the country, provinces and cities. 3. Development and future development trend of new technologies, Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) , new business forms and new models during the reporting period
On December 12, 2021, the State Council issued the "14th five year plan" for the development of digital economy. For medical device enterprises in rapid development, actively embracing the "digital era" for transformation and upgrading and adopting more rapid and effective digital means to complete product R & D and production will likely become the key factor for them to maintain their advantages, efficient coordination and improve their innovation ability in the fierce market competition.
The company will continue to improve and supplement the existing main business product line, introduce new technologies and surgical treatments of "digitalization, intelligence and minimally invasive", expand and integrate the upstream and downstream key industrial chains, rely on the product development strategic layout of "new technology, new materials and new fields", build Shandong Weigao Orthopaedic Device Co.Ltd(688161) R & D Innovation Incubation Platform, R & D layout new fields, transform new projects and incubate new products, and strengthen the control and management of R & D projects Establish an industrial group level R & D center to enhance the competitiveness of Weigao brand and the company's sustainable profitability.
3 main accounting data and financial indicators of the company 3.1 main accounting data and financial indicators in recent three years
Unit: yuan currency: RMB
20212020 compared with 2019 of the previous year
