招股书显示，The Hong Kong Stock Exchange recently disclosed that Neusoft Medical submitted an application for listing on the main board of the Hong Kong Stock Exchange, with China International Capital Corporation and Goldman Sachs Group as co-sponsors, the Hong Kong Wande News Agency reported.
(photo source: Neusoft Medical prospectus)
The prospectus shows$NEUSOFT MEDICAL SYSTEMS (810288.HK)$Founded in 1998, it is a leading provider of medical imaging solutions and services in China. According to Frost Sullivan, the company is China's largest domestic calculator fault (CT) system manufacturer and the fourth largest CT system manufacturer in terms of the total number of installed systems in 2021, with a market share of 11.5%.
Neusoft Medical is also China's largest exporter of CT systems by sales in 2021. The company ranks fifth among Chinese CT manufacturers by 2021 revenue, while three of the top four market participants are overseas CT manufacturers and one is a domestic manufacturer.
Neusoft Medical has offices in 10 countries and sells to customers in more than 110 countries. In 2021, the company's domestic and overseas sales accounted for 83.2% and 16.8% of the company's revenue, respectively. As of June 30, 2022, the company has installed more than 44000 medical imaging devices worldwide, of which more than 18000 medical imaging devices have been purchased by more than 9600 domestic distributors or Chinese end customers. As of June 30, 2022, more than 5100 medical imaging devices installed by the company have been connected to the company's medical equipment and medical imaging data service (MDaaS) platform.
Neusoft Medical's revenue sources mainly include digital medical diagnosis and treatment equipment, equipment services and training, MDaaS platform and in vitro diagnosis (IVD) equipment and reagents, which account for 73.4%, 16.6%, 6.2% and 3.1% of the company's total revenue in 2021, respectively.
In 2019, 2020 and 2021, Neusoft's revenue was 1.908 billion yuan, 2.459 billion yuan and 2.803 billion yuan respectively, while the company's profits were 82 million yuan, 92.8 million yuan and 297 million yuan respectively, with gross profit margins of 38.7%, 36.7% and 38.0% respectively.
It is worth noting that Neusoft Medical's annual profit increased from 92.8 million yuan in 2020 to 297 million yuan in 2021. The increase was mainly attributable to: (I) the increase in revenue across all lines of business, which was mainly due to an increase in sales of new products; and (ii), which was regarded as a gain of RMB 152 million from the sale of subsidiaries, as the company reduced its stake in Neusoft Smart, which became one of the company's associates.
For the six months ended June 30, 2021 and 2022, the company's revenue was 1.32 billion yuan and 1.502 billion yuan respectively, while the company's profit was 87.9 million yuan and 218 million yuan respectively.
As of June 30, 2022, the company's R & D team consists of 765 members. Mr. Jiang Genmiao leads the company's R & D department, who has more than 20 years of related R & D experience. In 2019, 2020 and 2021 and for the six months ended June 30, 2021 and 2022, the company's R & D expenditure accounted for 21.4%, 15.3%, 13.2%, 14.4% and 11.4% of the company's revenue, respectively.
In terms of market size, sales of CT scanners in China increased rapidly from 9.3 billion yuan in 2017 to 15 billion yuan in 2021, with a compound annual growth rate of 12.8%. It is estimated that by 2026, the market will grow to 22.7 billion yuan, with an annual compound growth rate of 8.6%. The total number of CT scanners sold in China increased from 3020 in 2017 to 6889 in 2021, with a CAGR of 22.9 per cent. Sales of CT scanners in China are expected to increase to 11279 units by 2026, with a compound annual growth rate of 10.4 per cent.
In terms of competition, according to Frost Sullivan, in 2021, the top five companies in China's CT market accounted for 89.7% of the market share in terms of revenue. Neusoft Medical CT scanners ranked first among Chinese domestic brands in terms of revenue from 2017 to 2019 and second from 2020 to 2021. Neusoft Medical is also China's largest exporter of CT systems by sales from 2019 to 2021. Neusoft Medical has a 10.4 per cent market share in China's CT scanner market by 2021 revenue.
