On December 24, Jiu’an Medical again received a letter of concern from the Shenzhen Stock Exchange, requesting an explanation of the company’s response to investors on the interactive platform, including providing the company’s belief that the kit can detect the Omicron mutant strain and whether it exists Induce investors to infer the overall sales of the kit and other content. The Beijing News Shell Finance reporter noted that at present, on the interactive Yi platform, Jiu’an Medical has changed its answer to the above questions.
This is the third time that Jiu’an Medical has received a letter of concern from the Shenzhen Stock Exchange in the past two months. Previously, the Shenzhen Stock Exchange had issued a letter of concern regarding the company’s equity incentive plan and whether the response to the kit product on the interactive platform was prudent and objective.
Since Jiu’an Medical announced on November 8 that the U.S. subsidiary iHealth’s new crown self-test OTC kit has obtained the U.S. Food and Drug Administration (FDA) Emergency Use Authorization (EUA), Jiu’an Medical’s stock price has gradually started to skyrocket. Since November 15, the stock has recorded 20 daily limit within 30 trading days. As of 3 p.m. on the 24th, Jiu’an Medical had 39.52 yuan per share, up 472.75% from 6.9 yuan per share on November 15. In the case of receiving a letter of concern from the Shenzhen Stock Exchange today, the increase is still as high as 9.99%.
This is not the first time that Jiu’an Medical has seen its share price soar. As early as from 2013 to 2015, the company was classified as a wearable device concept stock, and its stock price rose from nearly four yuan per share to more than 40 yuan per share.
Behind the skyrocketing stock price: Huoyiyi Reply is suspected of exaggerating publicity, whether the product can detect OmicronInconsistent reply
On November 8 this year, Jiu’an Medical announced that the new crown self-test kit developed by its US subsidiary iHealth has been approved for use in the United States. American residents can purchase and use it through e-commerce platforms, pharmacies, and supermarkets without a prescription. The instructions for the kit on Amazon show that the kit is mainly used for rapid and qualitative detection of viruses in human nasal swab samples in vitro. It can be collected and operated by individuals, and the test results can be displayed in 15 minutes. After the news was announced, since November 15th, Jiu’an Medical’s share price rose by leaps and bounds, from the opening of 6.9 yuan per share on the 15th to the closing price of 39.52 yuan per share on the 24th, an increase of 472.75%.
However, just announcing the results may not make investors so enthusiastic. More importantly, the company’s response to investors on the interactive platform-the current monthly production capacity of the kit is 100 million people, and it is expected to grow to 200 million people by the beginning of 2022, and the multi-state government in the United States has already distributed to the public The iHealth kits and the California Department of Public Health have distributed iHealth kits to students in various school districts. The kits rank first in sales on Amazon. We believe that the kits can detect Omicron mutant strains. If calculated according to the company’s monthly production capacity of 100 million to 200 million people, and the price of $17.98 per two people, if the production capacity is fully digested, the company’s monthly revenue can reach $899 million to $1798 million, for a total of 57.25 100 million-11.45 billion yuan.
Does this mean that iHealth kits are very popular in the United States, and the demand for products is huge. At the same time, the kits can also detect mutant strains in the future, which can ensure continuous and stable sales?
However, someone soon discovered that there were inconsistencies in Jiu’an Medical’s response.
The first is the ranking of Amazon product sales. On the one hand, the company declared that “Amazon’s US website will update the sales ranking of the new crown antigen home self-test OTC kit product category in real time, and also update the sales ranking of the entire network product. As of now (December 1, 2021), our company’s new crown The sales of testing reagents on Amazon’s US website ranked first,” on the one hand, they replied to other investors that “Amazon’s official US platform did not disclose iHealth kit product sales information”; followed by product sales. On December 21, 2021, the company responded to a question on product quality reported by Amazon US consumers on the interactive platform, saying, “Although our kits have a small proportion of sales in Amazon US, the interests of customers are the most important. Importantly, the company will produce in accordance with FDA requirements.” It was later corrected on December 22, 2021 to “Although the number of quality feedback problems with this product in the US accounted for a small proportion of Amazon US sales, the interests of customers The most important thing is that the company will manufacture in accordance with FDA requirements.”
In addition, Jiu’an Medical also admitted that production capacity does not represent sales, let alone revenue. At present, there are about 300 million people in the United States, and there are as many as 9 new crown detection kit companies announced by the US FDA that have been approved for use. It is not easy for the production capacity of Jiu’an medical kits to be fully absorbed.
Shell Finance noticed on the interactive platform that Jiu’an Medical first answered the investor’s question “Can Omi Keron be detected” on December 17, saying, “In principle, we believe that the company’s antigen testing The product can detect the Omicron mutant strain.”. The same reply has been maintained since then. Until December 24, when the company responded to similar questions, it removed the sentence, and the rest of the response remained unchanged, saying, “At present, the company is waiting for the arrival of the virus strain, and the laboratory is ready. Once the virus strain is obtained, we Will be tested as soon as possible”. Comparing companies in the same industry, different from Jiu’an Medical’s “waiting for the virus strains to arrive”, many companies, including Oriental Bio, said that their own new crown detection kits can effectively detect the Omicron virus.
In terms of sales volume, Shell Finance noted that Amazon showed that iHealth kits ranked first in the best-selling list in the industrial science category, with 759 product reviews as of press time. Compared with other kit products under the same category, the iHealth kit is the latest on sale and the lowest price, and it is currently out of stock. However, the specific sales of the kit are not shown.
Received a letter of concern from the Shenzhen Stock Exchange three times within two months
The inconsistent interaction and easy response of Jiu’an Medical, the suspected misleading capacity announcement, and the two equity repurchase plans in the short term have also attracted the attention of the Shenzhen Stock Exchange. On December 24, the Shenzhen Stock Exchange issued another letter of concern to Jiu’an Medical, stating that the company recently responded to investors’ questions on the company’s subsidiary product new coronavirus antigen home self-test OTC kits on the interactive platform, and asked the company to The verification instructions include “believe that the kit can detect the Omicron mutant strain”, “Amazon’s US official platform has not disclosed iHealth kit product sales information”, “Our company’s new crown test kit ranks first in sales on Amazon’s US website”, etc. 7 Replies.
In 2021, Jiu’an Medical twice disclosed the company’s share repurchase plan. The purpose of the repurchase is to implement equity incentives or employee stock ownership plans. As of November 2, 2021, the two repurchase plans have been implemented, and a total of 25,492,700 shares were repurchased, accounting for 5.33% of the company’s total share capital. On November 3, the Shenzhen Stock Exchange issued a letter of concern regarding Jiu’an Medical’s frequent share repurchase program, requesting to explain whether the company’s equity incentive plan is reasonable.
On November 8, Jiu’an Medical announced that the US subsidiary iHealth’s new crown test kit was approved by the FDA for emergency use. After that, when answering investors’ questions on the Interactive Easy platform, it stated that “market demand is on the rise” and “the kit has begun.” Large-scale production and hot-selling in the local spot” and other responses. Since the news was disclosed on November 8, as of the close of the market on November 23, the company’s stock price has risen by 121.17%, which is the daily limit for 7 consecutive trading days. In response, the Shenzhen Stock Exchange issued a letter of concern for the second time, requesting the company to explain the company’s series of responses on the interactive platform after the disclosure, and explain the relationship between this behavior and the previous two share repurchases, and answer whether the company is suspected of pulling up. Stock price, thus facilitating the situation in which the incentive objects of the stock option incentive plan in 2020 exercise their rights independently for profit.
On November 24, the Shenzhen Stock Exchange issued a letter of concern again, asking the company to explain whether there was any violation of the accuracy, timeliness, and fairness of information disclosure, and whether there was any use of the interactive platform to cater to market hotspots and speculate on the company’s stock price. However, the share price of Kowloon Medical after receiving the letter of concern was not affected, but continued to rise by 9.9% that day.
The return of the king of stock prices: the concept of wearable devices has been put on the stock price soared
In fact, it is not the first time that Jiu’an Medical’s stock price has soared. As early as 2013 to 2015, the company’s share price rose from nearly 4 yuan per share to a maximum of 40 yuan per share due to the popularity of “wearable device concept stocks.” Per share, an increase of up to 900%.
In 1995, Liu Yi, the founder of Jiu’an Medical, developed an electronic sphygmomanometer five years after graduation. This emerging product changes the shortcomings of traditional mercury column sphygmomanometers that are difficult to carry. It is not only convenient and easy to carry, but also accurate in counting. One month after its launch, more than 1,000 electronic sphygmomanometers were sold in Tianjin. Liu Yi, who made his first pot of gold, founded Jiu’an Medical, and since then started his own entrepreneurial road.
After relying on the sale of medical equipment hardware equipment to make a fortune, in order to expand sales, Jiu’an Medical began to do export trade. In 2006, the company’s orders in Germany reached 1 million units, which also laid the foundation for a large share of the international market in the future. In 2010, Jiu’an Medical went public successfully. Soon after the listing, Liu Yi, as the company’s chairman, proposed a plan to transform into Internet healthcare, saying that this was “a good opportunity to become a leader in the world.” Since January 2011, the iHealth series of personal health management products based on mobile Internet have been launched one after another. By the end of the year, there were already iHealth blood pressure monitors, iHealth weight scales, etc. The iHealth series of products focus on mobile and network interconnection health management, and they have attracted many international giants within two years. At that time, well-known companies including Apple and Wal-Mart were all customers of Jiu’an Medical.
By 2013, with the popularity of wearable devices in the US market, the concept of wearable devices has also begun to ferment in China, and the A-share market has also begun to explore related concept stocks. As Jiu’an Medical’s products involve a wearable watch counter, Jiu’an Medical also ranks among the wearable concept stocks. It is sought after by funds and leads the rise of A shares. In May of that year, there were 4 daily limits, an increase of 124. %. At that time, Google Glass and Apple iWatch had not yet come out.
2014 is a bright year for Jiu’an Medical. This year, Jiu’an Medical and Xiaomi reached a strategic cooperation. The company’s smart health brand iHealth received a US$25 million investment from Xiaomi. It will carry out in-depth cooperation with Xiaomi in user experience, Xiaomi e-commerce and cloud services, and jointly create mobile health cloud platform. In this way, Jiu’an Medical’s left-handed Apple and right-handed Xiaomi were “invincible” in the A-share market. The stock price continued to rise by leaps and bounds, reaching 43 yuan per share in 2015.
In the first three quarters of the year, revenue was “cut in half” year-on-year, and non-net profit deductions became negative again. Can the new crown test kit turn around?
However, the prosperity brought about by concept speculation alone did not last. Since the end of December 2015, the share price of Jiu’an Medical has continued to fall.
Behind the decline in stock price are Jiu’an Medical’s slow-growing revenue and year-on-year decline in net profit since the announcement of its transformation in 2010. From 2010 to 2016, the company’s revenue was 298 million yuan, 354 million yuan, 356 million yuan, 407 million yuan, 425 million yuan, 397 million yuan, and 420 million yuan. During this period, the company’s net profit showed a downward trend after rising from 23 million yuan in 2010 to 70 million yuan in 2012, and once fell to a negative number in 2013 and 2015.
From the perspective of deducting non-net profit, it has been continuously negative from 2013 to 2019. Until 2020, due to the impact of the epidemic, the company’s sales of anti-epidemic related products such as thermometers have greatly increased, and the company’s revenue has increased significantly, with revenue exceeding 2 billion yuan, a year-on-year increase of 180%. However, as the epidemic improved in 2021 and sales of anti-epidemic materials decreased, the company’s revenue fell again in the first three quarters, with a decline of more than 50%, and the deduction of non-net profits also turned negative again. It will take time to test whether Jiu’an Medical can rely on the new crown test kit to achieve a performance turnaround again.
Beijing News Shell Finance reporter Li Menghan edited by Yue Caizhou to proofread LucyReturn to Sohu to see more
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