On December 9, Wandong Medical announced that the company's board of directors recently received a written resignation report from Xie Yufeng, director and president of the company, who resigned as the company's director, member of the strategy committee of the board of directors, president and chief engineer for personal reasons. At the same time, an announcement was made announcing the successor, Mr. Song Jinsong, as the president.
According to public information, Xie Yufeng was born in 1970, graduated from Zhejiang University with a bachelor's degree in optoelectronic technology, graduated from Peking University with a master's degree in business administration, and is a professor-level senior engineer. Xie Yufeng has served as the director of the research institute, the manager of the product development department, the manager of the logistics department, the assistant to the general manager, the director, the chairman, the president and the chief engineer of Wandong Medical. According to the 2022 Wandong Medical Public Annual Report, Xie Yufeng's total pre-tax remuneration from the company is 363060,000 yuan.
According to the announcement, Song Jinsong, born in 1967, has successively served as General Manager of GE (General Electric) Greater China Magnetic Resonance Department, Vice President and General Manager of Central North Region, Vice President and General Manager of HCS, President of Fosun Hospital Investment Group, Senior Vice President of Fosun Pharma Group, Director and CEO of Peking University Medical Industry Group, and Chairman of Peking University Pharmaceutical Co., Ltd.
According to the 2022 Wandong Medical Annual Report, Xie Yufeng's term of office as director and president is from June 19, 2021 to June 18, 2024. But in fact, on December 29, 2020, Yan Xia, the former president of Wandong Medical, resigned as the company's director and president for personal reasons, and Xie Yufeng, who was also the chairman of Wandong Medical at that time, began to serve as president.
On June 18, 2021, Wandong Medical held a general election of the board of directors, and Xie Yufeng was elected as a non-independent director and was re-appointed as the president of Wandong Medical. In February of that year, Midea Group invested 229.7 billion yuan was transferred to Wandong Medical 2909% of the shares, became the controlling shareholder of Wandong Medical, and He Xiangjian, the founder of Midea Group, became the actual controller of Wandong Medical. In addition, in this election, three senior executives of Midea Group entered the board of directors of Wandong Medical, among which Hu Ziqiang, vice president and CTO of Midea Group, became the chairman of Wandong Medical, and Xie Yufeng no longer served as chairman.
At the same time as Xie Yufeng's current resignation, Wandong Medical announced Song Jinsong as the company's new president. Song Jinsong is a senior professional manager with both medical and investment backgrounds, having worked at GE Healthcare and a postdoctoral fellow at the University of Munich in Germany. At GE Healthcare China, he worked his way up from Magnetic Resonance South Manager to Vice President of Greater China and General Manager of HCS. After leaving GE, he joined Fosun Pharma and Peking University Medical Industry Group, attracting industry attention.
According to public information, in July 2015, Song Jinsong joined Shanghai Fosun Pharmaceutical (Group) Co., Ltd. as senior vice president. In March 2017, Fosun Pharma announced that Song Jinsong resigned as senior vice president for personal reasons. In April of the same year, Song Jinsong joined Peking University Medical Industry Group as the group's CEO, and was subsequently elected as the chairman of the eighth board of directors. However, in October 2023, Peking University Pharmaceutical announced that Song Jinsong applied for resignation as director and chairman of the company for personal reasons, and no longer held any position in the company.
With the announcement of Wandong Medical, he will take the helm of China's first listed medical imaging equipment manufacturer. Wandong Medical's main business is the R&D, manufacturing and sales of large-scale medical imaging equipment, which highly overlaps with Song Jinsong's previous service areas in GE Healthcare China.
Song Jinsong's appointment has undoubtedly brought some new ideas and directions to Wandong Medical, and his rich experience and innovation ability in the medical field will bring infinite possibilities to the future development of Wandong Medical. However, at the same time, it is also important to see that the challenges and problems faced by Wandong Medical cannot be ignored.
Founded in 1955, Wandong Medical is committed to the innovation of medical imaging technology and provides high-quality medical imaging products and services for clinical practice. Headquartered in Chaoyang Park, Zhongguancun Science and Technology Park, it has R&D and manufacturing bases in Beijing and Suzhou. The company's imaging products cover MRI, CT, DSA, DR, DRF, digital breast machine, mobile DR, ultrasound diagnostic equipment, providing combined solutions to clinical practice and creating value for customers.
According to the 2022 annual report, DR equipment is the pillar product of Wandong Medical, Wandong Medical's DR and DRF (medical diagnostic X-ray machine) are in the leading position in the domestic market, mobile DR is in the first echelon of the domestic market, and DSA, MRI, CT, and digital breast machines are in the second echelon of the domestic market.
It is also an indisputable fact that the sales of Wandong Medical's core products have declined, and the 2022 annual report shows that Wandong Medical's conventional DR sales account for 196%, ranking first in the industry;Mobile DR sales accounted for 1076%, ranking third in the industry. However, according to its financial report, Wandong Medical will sell 319 mobile DR equipment in 2021, a year-on-year decrease of 6157%, DR equipment sales of 1,463 units, a year-on-year decrease of 1872%。
In 2022, Wandong Medical will produce 976 sets of DR equipment and sell 1,024 sets, with a year-on-year decrease in production volume and sales volume. Wandong Medical explained that after ten years of rapid development, domestic hospitals at all levels have basically popularized equipment DR, and the domestic DR market has begun to enter the stock update cycle.
Judging from the overall performance of Wandong Medical, the performance is also mediocre and has not improved much. In recent years, Wandong Medical's performance has improved significantly in 2020, with revenue from 9 in 201982.4 billion yuan increased to 113.2 billion yuan, net profit from 168.9 billion yuan increased to 220.7 billion yuan.
In the two years since Wandong Medical's 2022 annual report, Wandong Medical's performance has fallen into a bottleneck period, and even the net profit in 2022 has returned to the level of 2019. From 2021 to 2022, which is also the time when Xie Yufeng served as the president of Wandong Medical, Wandong Medical's revenue was 115.6 billion yuan, 112.1 billion yuan, net profit was 183.2 billion yuan, 175.4 billion yuan.
In the first three quarters of 2023, Wandong Medical's revenue was 925.8 billion yuan, net profit of 44.14 million yuan. However, in the 2022 annual report, Wandong Medical said that it is expected to achieve operating income of 1.6 billion yuan in 2023, and it is expected to achieve a net profit attributable to the parent company of 1$8.1 billion. According to the current performance of Wandong Medical, there is still a long way to go to achieve the performance target set in 2022.
In addition, it is worth noting that Wandong Medical's inventory has increased significantly, and there is a risk of impairment. From 2021 to 2022, Wandong Medical's inventory was 192.3 billion yuan, 266.6 billion yuan, in the third quarter of 2023, Wandong Medical's inventory has reached 341.4 billion yuan.
Despite these challenges, Song's appointment undoubtedly presents some opportunities for Wandong Medical to turn the situation around. His resume at Fosun Pharma and Peking University Medical Industry Group shows that he has experience and capabilities in hospital mergers and acquisitions and main business. During his tenure at Peking University Medical Industry Group, he formulated a new strategic upgrade plan, aiming to transform from the field of medical services to the field of general health. At the same time, he also has unique insights and practical experience in building an online and offline closed-loop service industry of "health management + insurance" on the basis of building a sound Internet medical treatment.
At present, Midea Medical has built five major business segments, namely Wandong Medical, KUKA Medical, Midea Biomedical, Swisslog Medical, and Midea Building Technology. Wandong Medical is the core platform for Midea Group's transformation to a 100-billion-level track - medical devices, and the core puzzle of Midea's medical territory, which has attracted much attention from the capital market.
Medical imaging equipment is a market segment with high technical barriers in the medical device industry. As an imaging expert focusing on the scene of medical technology building, Wandong Medical keeps up with clinical needs and brings the latest progress of a number of cutting-edge projects in the industry, including the industry's first full-frame DR, which realizes full-vertebral and whole-limb imaging at one timeThe original OpenCT redefines upright 3D imaging. The helium-free magnetic resonance (helium-free magnetic resonance resonance system) developed by Wandong Medical has also been settled in Beijing Jishuitan Hospital, and more than 1,000 cases of examination from head to toe have been completed within more than a month of use.
In the medical device industry, R&D expenditure is the most important tool to build a corporate moat and broaden the corporate moat, and international medical device giants will invest about 10% of their operating income in R&D every year for R&D and iteration of old products and new products.
It can be seen that there will be a big jump in R&D expenditure in 2021, increasing by 25 million R&D expenditures, and in 2022, when operating income shrinks, R&D expenditures will directly increase by 26 million, and the proportion of R&D expenditures will directly increase to 12%;In 2023, R&D expenditure is expected to increase by another 30 million on the basis of 2022, and the total R&D expenditure is expected to be 1800 million, the proportion reached 13%, which has reached the first echelon level of industry R&D expenditure.
In 2022, in order to improve the market competitiveness and market share of the company's products, the company will increase R&D investment. During the reporting period, the company introduced high-end R&D talents, expanded the scale of social recruitment and school recruitment, and the number of R&D personnel increased to 212, and the proportion of R&D personnel increased to 23%.
As a subsidiary of Midea Medical, Wandong Medical, which specializes in medical imaging, released the latest clinical results of the world's first liquid helium-free superconducting magnetic resonance with NMPA certificate, as well as the industry's first full-width DR, the original OpenCT intelligent guided integrated weight-bearing position CBCT-DR, PILOT pilot, TURBOTOM 3 series all-round CT and other new products. Kaitian i Vision15T liquid helium-free superconducting magnetic resonance has been applied in more than 10 hospitals around the world, including Beijing Jishuitan Hospital in China, and completed the installation in Somalia overseas.
Starting from basic medical care, Wandong has a wide range of recognition and market share in the grassroots marketSince 2020, it has begun to deploy new products and high-end technologies, and released 15 new products in 2020, 20 in 2021, and 43 in 2022. Among them, one is the world's first, two industry firsts, focusing on the implementation of 68 innovative technologies, and cooperating with many top medical units and scientific research units such as Beijing Jishuitan National Orthopaedic Medical Center, Beijing Friendship Hospital affiliated to Capital Medical University, Wuhan Hospital, and National Nano Center to jointly implement innovative technologies. At this release rate, Wandong Medical may exceed 50 new product releases in 2023.
According to CIC Consulting, driven by global aging, increasing chronic diseases and growing medical expenditures, the global medical device market has exceeded US$440 billion in 2020 and is expected to grow at a compound growth rate of 6 in the next decade3%, China has become the world's second largest market with a market share of 23%, of which China's medical imaging equipment market is expected to grow at a CAGR of 7 from 2020 to 20303% to 9With a market share of 7%, it ranks third in the world, and companies represented by Midea and Haier can be expected to enter the medical device market
Article**: Medical Device Innovation Network Wandong Medical