After several twists and turns, Mindray Medical, the medical device “Huawei”, successfully attended the conference yesterday, becoming the second China Concept Stock returning to A share through IPO after WuXi AppTec. In 2006, Mindray Medical was listed on the New York Stock Exchange, and on March 6, 2016, Mindray Medical completed its private delisting with US$3.3 billion. After the listing of Shenzhen Mindray Medical, it is expected to surpass CATL to become the largest IPO fundraising enterprise in the GEM if its stock is issued with the current raised funds of CNY 6.34 billion, and easily enter the “$100 billion club” in the GEM.
The R&D-featured investment: According to EvaluateMedTech’s Global Medical Device Market Overview 2017 and Global Medical Device Market Forecast for 2022, the sales of the world’s top three medical device companies, Medtronic, J&J and Siemens in 2016 were US$29.7 billion, $25.1 billion and $15 billion respectively. Compared with the leading international medical device companies, only the R&D investment by Medtronic in 2016 have exceeded 2 billion euros. China’s medical device enterprises generally lack investment in R&D, which seriously restricts independent innovation and leads to weak market competitiveness. According to the prospectus, during 2015-2017, the operating income of Mindray Medical was CNY 8.013 billion, CNY 9.032 billion and CNY 11.174 billion, respectively, with a two-year increase of 12.34% and 23.72% respectively. The net profit attributable to shareholders of the parent company was CNY 910 million, CNY 1.6 billion and CNY 2.59 billion respectively during the reporting period. The growth rate in the past two years was 75.82% and 61.88%, respectively, nearly double the growth. For Mindray Medical, R&D investment accounted for 12.33%, 12.06%, and 10.13% in 2015-2017, respectively, with the expenses of CNY 988 million, 1.089 billion, and CNY 1.132 billion respectively. Although there is a year-on-year decline, the total cost is on the rise and higher than the industry average.
The R&D-featured investment: According to EvaluateMedTech’s Global Medical Device Market Overview 2017 and Global Medical Device Market Forecast for 2022, the sales of the world’s top three medical device companies, Medtronic, J&J and Siemens in 2016 were US$29.7 billion, $25.1 billion and $15 billion respectively. Compared with the leading international medical device companies, only the R&D investment by Medtronic in 2016 have exceeded 2 billion euros. China’s medical device enterprises generally lack investment in R&D, which seriously restricts independent innovation and leads to weak market competitiveness. According to the prospectus, during 2015-2017, the operating income of Mindray Medical was CNY 8.013 billion, CNY 9.032 billion and CNY 11.174 billion, respectively, with a two-year increase of 12.34% and 23.72% respectively. The net profit attributable to shareholders of the parent company was CNY 910 million, CNY 1.6 billion and CNY 2.59 billion respectively during the reporting period. The growth rate in the past two years was 75.82% and 61.88%, respectively, nearly double the growth. For Mindray Medical, R&D investment accounted for 12.33%, 12.06%, and 10.13% in 2015-2017, respectively, with the expenses of CNY 988 million, 1.089 billion, and CNY 1.132 billion respectively. Although there is a year-on-year decline, the total cost is on the rise and higher than the industry average.