Mindray's revenue exceeds 30 billion CNY in three main businesses

On April 27, Mindray released its annual report, showing that in 2022, it achieved revenue of 30.366 billion CNY, up 20.17% year-on-year, net profit attributable to shareholders of the listed company was 9.607 billion CNY, up 20.07% year-on-year; net cash flow from operating activities was 12.141 billion CNY, up 34.92% year-on-year, and basic earnings per share was 7.94 CNY. At the same time, the company intends to distribute a cash dividend of 45 CNY (including tax) for every 10 shares to all shareholders, with a total proposed cash dividend of 5.456 billion CNY.

By business, the company's three main businesses, Mindray life information and support business to achieve revenue of 13.401 billion CNY, an increase of 20.15%, in vitro diagnostics business to achieve revenue of 10.256 billion CNY, an increase of 21.39%, medical imaging business to achieve revenue of 6.464 billion CNY, an increase of 19.14%, and the company's overall performance growth rate. Among them, thanks to the development of new domestic medical infrastructure and the breakthrough of overseas high-end customer base, Mindray's life information and support business revenue growth rate significantly accelerated compared to the previous year. For example, the seed business in this area, minimally invasive surgery, achieved a high growth rate of over 60%, with rigid mirror systems growing over 90%.

In the field of IVD business, chemiluminescence business revenue also grew nearly 30%. 2022, Mindray increased the layout of blood cell BC-7500 series, chemiluminescence CL-8000i, biochemistry BS-2800M, coagulation CX-9000, TLA pipeline and other instruments installed, the launch of these heavyweight products supported the high growth of in vitro diagnostics business.

In the medical imaging field, the rapid uptake of Mindray's new high-end ultrasound R series and new mid- to high-end ultrasound I series brought a breakthrough in the high-end customer base at home and abroad. Among them, the launch of Mindray` s new mid- to high-end desktop ultrasound I series (ZST+ domain light platform based on holographic data and equipped with extremely fast processing hardware architecture) and a number of new POC ultrasound and other explosive new products in the international market have transformed the ultrasound business from mid- to low-end customers to high-end customers breakthrough.

By market, Mindray` s domestic and overseas businesses achieved revenue of RMB 18.667 billion and RMB 11.698 billion, up 22.33% and 16.86% year-over-year, respectively. The share of domestic business in revenue further increased to 61.48% from 60.39% in 2021.

In terms of gross margin, the overall gross margin of the Company in 2022 is basically sustained from 2021 at 64.17%, among which the gross margins of life information and support products, in vitro diagnostic products and medical imaging products are 66.33%, 60.35% and 66.40%, respectively.

The company's R&D investment in 2022 reached another record high, totaling 3.191 billion CNY, accounting for 10.51% of the operating revenue in the same period. As of December 31, 2023, Mindray applied for a total of 8,670 patents, including 6,193 invention patents, a total of 3,976 patents were granted, including 1,847 invention patents.

Entering 2023, Mindray maintained a performance growth of more than 20%. 2023 January-March, the company's revenue was about 8.364 billion CNY, an increase of 20.47% year-on-year; net profit attributable to shareholders of the listed company was about 2.571 billion CNY, an increase of 22.14% year-on-year.

It is worth mentioning that earlier, Mindray executives revealed in an investor exchange: "Since February, the domestic routine outpatient and emergency visits, surgery volume, and physical examination volume have recovered significantly, making the consumption of IVD reagents also recovered. In addition to this, projects such as new medical infrastructure and subsidized loans are being accelerated. Breakthrough in overseas high-end customers continues. Thanks to the overseas IVD platform-based capacity building, the overseas IVD high-end breakthrough led by third-party laboratories will be significantly accelerated."