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On July 12, Cailian Press (Reporter Wang Bin) Innouvo Technology (000795.SZ) is expected to double its net income in the first half of this year due to the growth of healthcare equipment demand, surpassing the net income scale of 86.7122 million yuan in the full year of last year.

Tonight, Innouvo Technology issued an announcement that it is expected to achieve a net profit attributable to shareholders of the listed company of 1.3 billion yuan to 1.6 billion yuan in the first half of this year, a year-on-year increase of between 130.44% and 183.62%; net income after deducting non-recurring gains and losses is expected to be 1.15 billion yuan to 1.5 billion yuan, a year-on-year increase of between 255% and 363.04%.

Financial data shows that Innouvo Technology achieved a net profit of 67.7694 million yuan in the first quarter of this year, an increase of 74.84% year-on-year. Based on this calculation, the company's net profit in the second quarter is expected to be between 62.2306 million yuan and 92.2306 million yuan, representing an increase of 252.52% to 422.46% compared to the same period last year.

Innouvo Technology stated that the increase in performance was due to the increase in efforts to develop the healthcare equipment business market, leading to significant growth. In addition, the company continues to optimize customer relations, inventory management and promote lean management, effectively implementing cost reduction and improving efficiency.

In the minutes of the investor survey disclosed by Innouvo Technology in May this year, it stated that the demand for healthcare equipment has been growing in the last two years, and the company has continued to invest in healthcare equipment business. Last year, it took the lead in launching the application of carbon fiber materials, and the market demand exceeded supply, significantly boosting the performance of the company's healthcare equipment sector.

In 2015, Innouvo Technology established a joint venture subsidiary, Innouvo Technology Rehabilitation, to engage in the production and sale of healthcare equipment, including electric wheelchairs, elderly mobility scooters, walkers, and nursing beds. It is reported that the company's healthcare equipment products are mainly sold to C-end customers through online channels such as JD.com and Taobao in the domestic market, while overseas markets mainly adopt ODM and OEM modes and mainly exports to Europe, America, and Southeast Asian countries.

Innouvo Technology said that with the increasing aging population and the continuous improvement of residents' consumption levels, it is expected that there will be ample development space for the healthcare equipment industry in the future. In the future, the company will take advantage of its existing strengths, expand production accordingly, consolidate and improve its position in the industry, and increase its market share.

Currently, Innouvo Technology mainly has three major business segments: neodymium iron boron permanent magnet materials, electric machine intelligent control, and healthcare equipment. In 2023, the revenue of these three business segments will account for approximately 57.79%, 21.39%, and 14.1%, respectively.

It is worth mentioning that the company's net income last year decreased by 66.46% year-on-year, and the continuous downward fluctuation in rare earth raw material prices was one of the main reasons for the decline in performance.

Since the beginning of this year, the rare earth market has not shown substantial improvement. Innouvo Technology admits to investors in April this year, 'from the situation in the first quarter of this year, the performance of the magnetic materials business still has some pressure due to the decline in magnetic materials raw material prices and market competition.'

The June rare earth market monthly report released by the Rare Earth Exchange also shows that due to the unexpected decline in terminal product orders, the price of metal praseodymium-neodymium has started to fall after maintaining an increase for a short period of one and a half months (mid-April to mid-May).