On the evening of April 19, Mindray Medical (300760) released its 2021 annual report. During the reporting period, the company’s operating income reached 25.270 billion yuan, a year-on-year increase of 20.18%; the net profit attributable to the parent reached 8.002 billion yuan, a year-on-year increase of 20.19%.
The report for the first quarter of 2022 released on the same day showed that the company’s operating income and net profit attributable to the parent continued to grow at a rate of more than 20%.
What deserves investors’ attention is that Mindray Medical, with its core competitiveness built by adhering to high-standard R&D investment since its establishment 30 years ago, has achieved steady growth in its main business and has seized the medical benefits brought by the new crown pneumonia epidemic for two consecutive years. The strategic opportunity for the growth of equipment demand, and the increase of market share with the help of centralized medical equipment procurement, has achieved “the strong will always be strong”. At the same time, in the thirties, facing the juncture of the new era, the proposal of sustainable development strategy has opened up a greater imagination space for the company’s future development.
According to public information, Mindray Medical was established in 1991, and its main business covers three major fields of life information and support, in vitro diagnosis, and medical imaging.
Since its establishment, the company has always regarded independent technological innovation as the key to building its core competitiveness, insisted on continuously increasing R&D investment, and the proportion of R&D investment in operating income has long been as high as about 10%.
From 2018 to 2021, the company’s R&D investment amounted to 1.42 billion yuan, 1.649 billion yuan, 2.096 billion yuan, and 2.726 billion yuan respectively, with rapid growth year after year. R&D investment accounted for 10.33%, 9.96%, 9.97%, and 10.79% of operating revenue, respectively, maintaining a high market standard of about 1/10 of revenue invested in R&D, and reaching a new high in 2021.
Relying on the growing investment in R&D, the company has continuously enriched the R&D team, and the number of R&D personnel has grown rapidly. From 2018 to 2021, the number of R&D personnel in the company reached 2,258, 2,508, 3,070, and 3,492, respectively.
Long-term unremitting R&D investment has enabled the company to gradually build an internationally leading MPI medical product innovation system (MPI is Medical Product Innovation). The center has formed a huge global R&D network, and has explored and formed an enterprise-oriented, market-oriented cooperation model of industry-university-research integration, laying a solid foundation for rapid industrialization.
By the end of 2021, the company has applied for a total of 7,418 patents, including 5,308 invention patents; a total of 3,437 patents have been authorized, including 1,618 invention patents.
The company’s strong R&D and innovation capabilities promote the continuous innovation of products, especially in the field of high-end products.
In 2021, the company launched the intelligent monitoring (version 2.0) neonatal department version, BeneFusion e series infusion pump (eVP/eSP/eDS) (newly launched in China), BeneFusion n/e infusion pump sealing consumables (newly launched in international region) ), high-end anesthesia machine A8/A9 (newly launched in China), SV300Pro ventilator, HyPixel R1 4K ultra-high-definition fluorescence endoscopic camera system, rigid endoscopy instruments (150mm lengthened simple puncture, multiplex puncture) and other new products; In the field of imaging, it mainly launched POC high-end flat-panel color ultrasound TE9, and low-end desktop color ultrasound shear wave solutions (DC-70, DC-60 Ultra). CRP and SAA detection integrated machine BC-7500 CS series blood cell analyzer and a series of new products of biochemical and immunological reagents.
These innovative product and solution companies can create significant clinical value for healthcare workers and are therefore welcomed by the market.
It is precisely because of its 30-year insistence on independent technological innovation that Mindray Medical has formed a strong core competitiveness in terms of product technology level and capacity economy of scale, so it has become the world‘s leading supplier of medical devices and solutions.
The strong are always strong: grasp the growth opportunities of market demand at home and abroad with strength
The medical device industry presents an obvious feature of “strong people are always strong”. Mindray Medical fully enjoys the dividends of industry development by virtue of its core competitiveness formed by adhering to independent technological innovation for 30 years.
The COVID-19 epidemic that has been going on since 2020 has exposed the shortcomings of medical systems around the world, and it is imperative to strengthen the construction of public health systems.
Since 2020, my country has successively introduced relevant policies to speed up the improvement of the shortcomings of high-end medical equipment, accelerate the research on key core technologies, break through the bottleneck of technical equipment, and realize the independent control of high-end medical equipment. Among them, the “Guiding Standards for the Review of Government Procurement of Imported Products” (2021 version) requires that as many as 137 kinds of medical devices must be 100% domestically sourced.
In 2021, although the domestic epidemic situation is relatively stable, the new medical infrastructure led by the expansion of large public hospitals is in full swing under this background. The centralized procurement with volume and the reform of medical insurance payment has brought new momentum to the development process of my country’s medical device industry.
At the same time, the shortcomings exposed by the new crown virus epidemic have made governments around the world more aware of the lack of their own medical resources, and many countries and regions have launched a new wave of new medical infrastructure to enter the international market for Chinese medical device products. brought a rare opportunity.
Facing the demand growth opportunities in the domestic market and the international market, Mindray Medical plays an important role as an industry leader in both domestic expansion of medical devices and domestically produced overseas. In 2021, after deducting anti-epidemic-related products, the company’s revenue in the domestic market will increase by more than 40%, and its revenue in the international market will increase by more than 35%.
At the same time, the company continued to increase its market share in both domestic and international markets and achieved new breakthroughs.
In the domestic market, the penetration rate of Mindray’s medical products has further increased. Most of the company’s life information and support business sub-products, such as monitors, defibrillators, anesthesia machines, ventilators, infusion pumps, and blood cells in the in vitro diagnostic business, have become The first in the country.
Although the market is concerned about the impact of centralized procurement of medical devices, in fact, for leading companies such as Mindray Medical, centralized procurement means more opportunities for development rather than pressure on performance, because the purpose of centralized procurement is to ensure that domestic substitution of medical devices has High cost performance, this is a great opportunity to realize the “Matthew effect” for leading enterprises in the industry with advantages of economies of scale.
In the international market, the company successfully broke through more than 700 new high-end customers in North America, Europe and emerging market countries, continuing the trend of overseas high-end breakthroughs. What is even more gratifying is that the company has also achieved horizontal product breakthroughs for more than 700 high-end customers overseas at the same time, further consolidating its market position.
Sustainable development: “deep water area” innovation “becomes the core force to protect human health“
It is worth noting that, along with the annual report and the first quarterly report, the “Minray Medical 2021 Annual Sustainability Report” was also solemnly released on April 20.
At the beginning of the new era of “100-year change” after “the thirteenth year”, the company issued a sustainable development report, which is self-evident in its significance of linking the past, creating the future, and promoting the evergreen of the foundation.
Chairman Li Xiting emphasized in his opening speech that Mindray Medical embraces the vision of “becoming the core force for protecting human health“, focusing on standardizing corporate governance, innovation-driven future, coordinated development of business chains, promoting green development, building a sustainable workplace, and achieving The six six major areas of common prosperity have established sustainable development strategies.
“Popularize high-end technology and let more people share high-quality life care” is the mission of Mindray Medical. In terms of methodology, in order to achieve its mission, Mindray Medical has made efforts from three aspects: integrated research and development, technological innovation, and multi-party collaboration to promote product accessibility, Lower the threshold for use and boost medical development.
Mindray medical innovation in the new era is gradually moving towards the “deep water area” of technology, building an ecological picture of smart medical care.
Mindray Medical uses differentiated products to meet the needs of users in harsh environments. For example, in order to overcome the altitude compensation algorithm of the parameters set by the Chinese West team, the accuracy of the patient’s air supply is guaranteed. At the same time, the Mindray ventilator is equipped with dual atmospheric pressure sensors, so that monitoring data can be backed up and mutually checked, and the altitude can be automatically calculated according to the monitored atmospheric pressure, ultimately ensuring the accuracy and safety of altitude monitoring.
Mindray Medical also uses intelligent applications to connect high-quality resources and grassroots user needs. For example, in Zayu County, located on the border of southeastern Tibet, it is very inconvenient for people to see a doctor. In recent years, with the technical assistance of Mindray Medical, the Shenzhen Aid-Tibet Working Group has carried out precision medical poverty alleviation work and built a medical road spanning 3,000 kilometers to connect Chayu and Shenzhen’s high-quality medical resources.
It can be seen that the sustainable development pursued by Mindray Medical is to overcome the obstacles of nature and society, to make high-end medical products accessible to the general public, to spread all over the world, to reflect the humanistic care of doctors, and to practice corporate social responsibility.
On the whole, Mindray Medical has benefited from its adherence to high standards of investment in R&D and innovation since its establishment 30 years ago, and has built its core competitiveness to win the market. Therefore, it has a strong ability to grasp strategic opportunities, has a high anti-risk ability, and has a constant market share at home and abroad. Improve, to achieve “strong and constant strength.”
In the new era, the company keeps pace with the times and is committed to realizing the harmonious and sustainable development of the enterprise and the society. It is expected to continue the long-term positive development trend, and investors can maintain optimistic expectations. Return to Sohu, see more