Achieved revenue of 669 million yuan in 2019, an increase of 20.2% over the previous year
The company announced its 2019 annual results announcement. In 2019, it achieved operating income of 669 million yuan, an increase of 20.2% over the previous year; net profit attributable to shareholders of the parent company was 129 million yuan, an increase of 6.7% over the previous year. Due to the large amount of non-recurring profit and loss in 2019, which included share-based payment expenses of 125 million yuan. Excluding the impact of certain non-recurring profits and losses, the company's profit was 255 million yuan, an increase of 29.8% over the previous year.
The increase in the company's revenue was mainly due to increased sales of LambreTM left atrial occlusion devices, Cera congenital heart disease occlusive devices, laminated stents, and venous venous filters. The company's overall gross margin was 79.95%, a slight decrease from last year. Sales expenses, administrative expenses, and R&D expenses were 166 million yuan, 132 million yuan, and 141 million yuan respectively, up 28.5%, 38.9%, and 22.5% year-on-year, accounting for 24.8%, 19.7%, and 21.1% of revenue.
Three business segments support revenue growth
The company's main business segments are mainly divided into three parts: structural heart disease business, peripheral vascular disease business, and pacing electrophysiology business. By business segment, the structured cardiology business generated revenue of 274 million yuan, an increase of 31.7% over the previous year, accounting for 41.0% of total revenue, mainly due to the increase in sales revenue of LambreTM left atrial occluders, which reached 64 million yuan, an increase of 54.1% over the same period last year, and sales revenue of HeartR blockers, Cera blockers, and CeraFlex blockers all increased somewhat compared to last year.
The peripheral vascular disease business generated revenue of 373 million yuan, an increase of 8.6% over the previous year, accounting for 55.8% of total revenue, mainly due to an increase in sales revenue from laminated stents and venous venous filters.
The pacing electrophysiology business generated revenue of 22 million yuan, an increase of 300.0% over the previous year, accounting for 3.3% of total revenue. The business is still in its infancy and will transition from a period of rapid growth to a period of steady growth.
The company's R&D is progressing steadily, and its products are sold all over the world
In terms of the company's research progress, the self-developed temporary pacemaker has been approved by the US FDA 510 (k) for listing in the US; the LambreTM left atrial occlusion system has also been exempted from the US FDA for clinical trials; the ABSNOWTM absorbable atriovenous occlusion system, the FitayATM venous filter system, and the YuranoSTM abdominal aortic covering stent system have all completed domestic clinical trials; the clinical results of the LifeFlowTM iliac artery bifurcation stent system are good; absNOWTM is eligible for clinical trials The atrial septal defect absorption system, the GoldenFlowTM peripheral stent system, and the extracorporeal temporary pacemaker have successively passed special approval applications from China's Drug Administration and have been approved as innovative medical devices. As of December 31, 2019, the company has obtained 9 products as innovative medical devices approved by the State Drug Administration, and 286 patents have been approved.
China is the company's largest business market. In 2019, sales in the Chinese market accounted for 75.3% of total revenue, and domestic revenue increased 17.8% over the same period last year. Overseas business areas also performed well. Overseas sales in 2019 increased by 28.1% over the same period last year. Overseas business is mainly products related to the structural heart disease business and peripheral vascular disease business. In 2019, European revenue reached 70 million yuan, accounting for 10.5% of total revenue; India's revenue was 27 million yuan, accounting for 4.1% of total revenue; Asia (excluding China and India) had revenue of 41 million yuan, accounting for 6.1% of total revenue; South America's revenue was 0.2 billion yuan, accounting for 3.0% of total revenue; and Africa's revenue was 03 billion yuan, accounting for 0.4% of total revenue.
Maintain the “increase in holdings” rating
Xianjian Technology is a developer, manufacturer, and marketer of advanced minimally invasive interventional medical devices used to treat cardiovascular and peripheral vascular diseases and disorders. While maintaining steady growth in the structural heart disease business and peripheral vascular disease business, the company will also usher in rapid growth in the pacing electrophysiology business sector. There are currently no large expenditure expectations for the year 20. We expect the company's profit for the 20-21 years to be 29/350 million yuan respectively (taking into account the share expenses made in '19, adjusted for the 214 million yuan originally predicted in '20), an increase of 124%/21% over the previous year, maintaining the “increase in holdings” rating.
Risk warning: foreign exchange risk, risk of new product sales falling short of expectations, risk of industry policy changes, etc.