Produced by |At the forefront of entrepreneurship.
Author |Meng Xiangna.
Edit |Hu Fangjie.
American Editor |Wu Yizhong.
Audit |Ode.
In the field of consumer medicine, there is a saying of "golden eyes and silver teeth", which is used to describe the difficulty of making money in various subdivisions. Some reports pointed out that implants and orthodontics are the two gold mines in the dental industry, with a potential market size of 200 billion yuan.
It can be seen that the field of oral medical services is an industry with "money". According to the data of the Frost & Sullivan report, China's oral medical service market has increased from 75.7 billion yuan in 2015 to 119.9 billion yuan in 2020, and is expected to grow at a compound annual growth rate of 199%, reaching 299.8 billion yuan in 2025.
In addition to medical institutions, the upstream of the industrial chain of the oral medical service industry has also received a "piece of the pie". As one of the indispensable medical device consumables in modern dental care, the market size of dental microscope is also expanding. According to QYResearch research data, the global dental microscope market size increased from 2$7.6 billion grew to $4. in 2022$5.7 billion.
Among them, Sumai Medicine, which focuses on the field of stomatology and takes dental surgical microscope as its core product, has achieved 2The revenue scale of 700 million yuan. According to a report by the Prospective Industry Research Institute, from 2020 to 2022, Sumai Medical accounted for 8% to 10% of the global dental surgical microscope market.
As early as June 2023, Sumai Medical submitted a prospectus to the Shenzhen Stock Exchange to be listed on the GEM. On January 24, 2024, Sumai Medical replied to the first round of inquiries from the Shenzhen Stock Exchange and updated the prospectus, replying to questions such as gross profit margin, related party transactions, and equity transfer one by one. If the IPO process goes smoothly, Sumai is expected to become the "first stock of dental microscopes".
Before submitting the form, Sumai Medical has won the favor of a lot of capital. However, before the submission of the prospectus, Sumai Medical had shareholders withdraw in advance. On the occasion of the upcoming sharing of the listing feast, why did shareholders leave the market early, and what are the "unspeakable secrets" of Sumai Medical?
Dental surgical microscope is a kind of surgical microscope specially designed for oral clinical practice, which is widely used in the clinical diagnosis and treatment of endodontics, restoration, periodontal and other specialties of stomatology.
According to the prospectus, the main business income of Sumai Medical mainly comes from dental operating microscopes, surgical microscopes, optical diagnostic instruments and operating instruments and others.
According to the relevant report of the Prospective Industry Research Institute, from 2020 to 2022, Sumai Medical occupied 40% to 50% of the domestic dental surgery microscope market and 8% to 10% of the global dental surgery microscope market.
From 2020 to the first half of 2023 (hereinafter referred to as the "reporting period"), Sumai Medical's performance grew steadily, with revenue of 17.6 billion yuan, 22.3 billion yuan, 2700 million yuan and 15.4 billion yuan, with a compound growth rate of 2478%；The net profit attributable to the parent company was 3812570,000 yuan, 4304870,000 yuan, 602980,000 yuan and 2723950,000 yuan, with a compound growth rate of 2576%。
Although Sumai Medical occupies more than 40% of the domestic dental surgical microscope market, the overall revenue scale is much lower than that of comparable companies. During the same period, the revenue of Largev Instrument, Meiya Optoelectronics, Haitai Xinguang and Zeiss Medical was 3700 million yuan, 21200 million yuan, 47.7 billion yuan and 1.9 billion yuan, the revenue scale of Sumai Medical is only 2700 million yuan, ranking last.
Figure: Sumai Medical Reply Letter).
From the perspective of revenue structure, dental surgical microscope is the core income of Sumai Medicine, and the revenue structure is relatively simple. During the reporting period, the revenue of dental surgical microscopes was 1400 million yuan, 17.8 billion yuan, 2200 million yuan and 1200 million yuan, accounting for respectively. 22% and 81%.
Although the revenue of surgical microscopes is increasing year by year, the revenue contribution is still small. In the first half of 2023, the revenue of surgical microscopes will be 79880,000 yuan, accounting for only 52%。
In terms of sales regions, half of the company's revenue comes from overseas, including the United States, Europe, Japan, Russia and other countries and regions. From 2020 to the first half of 2023, the company's overseas revenue accounted for 4665% to 55%.
However, compared with developed countries, the current domestic dental surgical microscope market penetration rate is low, and the overall market size of the industry is small. Sumai Medical said frankly that in the field of oral microscopic segmentation, Zeiss (Zeiss) and Leica (Leica) are the two leading enterprises in the global dental surgical microscope, occupying the main share of the international market, and Sumai Medical and CJ-optik, Global Surgical, Labomed and other companies belong to the second echelon.
This means that the smaller Sumai medicine is facing greater competitive pressure. In this context, Sumai Medical seizes the market with "low price", which is lower than that of competing products. However, the low-price strategy has also further reduced the company's gross margin.
From 2020 to 2023, the bidding and winning of the dental surgical microscope industry shows that the average unit price of Sumai Medical is 18560,000 yuan, far lower than the average unit price of Zeiss and Leica in Germany 29770,000 yuan, 45680,000 yuan. The end-user price of surgical microscopes is about 1 million to 1.5 million, which is also lower than the two companies' products with the same configuration**.
Dental surgical microscope bidding from 2020 to 2023.
Figure: Sumai Medical Reply Letter).
Low prices often mean lower gross margins. During the reporting period, the gross profit margins of Sumai Medical's main business were as follows. 46% and 5049%, showing a downward trend and below the average for comparable companies as a whole except in 2020.
During the reporting period, the gross profit margin of Sumai Medical's main business was compared with that of comparable companies in the same industry.
Figure: Sumai Medical Inquiry Reply Letter).
In the case of weakened profitability, Sumai Medical does not pay as much attention to R&D as comparable companies in the same industry. During the reporting period, the R&D expense ratios of Sumai Medical were as follows: 47% and 676%, which is much lower than the average R&D expense ratio of comparable companies in the same industry. 22% and 895%。
In terms of staffing, the number of R&D personnel is not only lower than that of the company's management personnel and sales personnel, but also far lower than that of comparable companies in the same industry in terms of number and proportion of personnel.
As of June 30, 2023, Sumai Medical has 59 sales staff, 82 management personnel, but only 30 R&D personnel. In addition, the proportion of R&D personnel in Sumai Medical is only 1031%, while Meiya Optoelectronics, Haitai Xinguang, and Zeiss Medical are as high. 38%。
At the end of the first half of 2023, the number and proportion of R&D personnel between Sumai Medical and comparable companies in the same industry.
Figure: Sumai Medical Inquiry Reply Letter).
The lack of R&D investment and staffing is also directly reflected in the company's R&D results data such as the number of patents.
As of the end of the reporting period, Sumai Medical has obtained 142 patent authorizations, including 20 domestic invention patents and 9 overseas invention patents, accounting for 2042%。
Generally speaking, the number of patents is an important indicator to measure a company's R&D and innovation capabilities, among which invention patents require significantly higher level of inventiveness than utility model patents, and the term of protection is longer, so it is more valued, but the proportion of invention patents of Sumai Medical is lower than that of comparable companies in the same industry.
Figure Sumai Medical Prospectus).
It is worth noting that Sumai Medical and Dentafei have had disputes over 9 patents. Dentafi filed a patent invalidation request with the State Intellectual Property Office for 9 patents owned by Sumai Medicine. In the reply letter to the first round of inquiry, Sumai Medical stated that as of the date of issuance of this reply, the State Intellectual Property Office has declared 8 of the patents invalid, and 1 patent has remained valid.
At present, Sumai Medical has filed an administrative lawsuit against 7 of the 8 invalidated patents, requesting the revocation of the invalidation request review decision of the State Intellectual Property Office. However, as of the end of June 2023, the above litigation has not yet been concluded.
Figure: Sumai Medical Inquiry Reply Letter).
In this regard, Sumai Medical said that none of the patents involved in the lawsuit belong to the company's core patents, and if the relevant patents are finally found to be invalid, it will not have a significant adverse impact on the company's core competitiveness and ability to continue operations. However, it is clear that if the relevant patents are found to be invalid, there is a risk that the patents will be used or imitated by others, and the competition faced by the company will be further intensified.
In fact, as of the submission of the prospectus, Sumai Medical has received multiple rounds of financing, and some shareholders have withdrawn.
The predecessor of Sumai Medical is Jiemei Medical, which was established in April 2005 by Li Xiangdong, Wang Jilong, He Jin, Wang Zhenming and Zhao Wei.
1. Huang Xiaoyan was jointly established by six people.
At the beginning of its establishment, the six signed a memorandum of understanding stipulating the proportion of the company's actual shareholding structure. Among them, Wang Zhenming holds 20% of the shares, Wu Yuanyi (Dai Zhao only) holds 18% of the shares, Li Xiangdong holds 17% of the shares, He Jin holds 15% of the shares, Wang Jilong holds 15% of the shares, and Huang Xiaoyan holds 15% of the shares.
However, as of the signing date of the prospectus, the actual controllers are Li Xiangdong, Wang Jilong, He Jin and Zhou Weizhong, who control a total of 6418% of the shares, and signed the "Concerted Action Agreement", as a person acting in concert, Zhao only still holds 1116% of the shares, but not acting in concert. Wang Zhenming and Huang Xiaoyan have disappeared from the company's shareholding structure.
As early as 2007, Huang Xiaoyan decided to withdraw from the company's operation due to differences in business philosophy and transferred the relevant equity held by him to He Jin.
Wang Zhenming has repeatedly ** Sumai Medicine, cashing out a total of 11.6 billion yuan.
In 2020, Wang Zhenming held it. 74% of the equity was transferred to Yida Achievement and small and medium-sized enterprises for 20 million yuan and 18 million yuan respectively.
On September 15, 2021, Wang Zhenming held another 107360,000 shares to 1863 yuan shares, a total of 20 million ** transferred to Ma Chuanliang.
On December 24, 2021, Wang Zhenming signed an equity transfer agreement with Huimei Kangteng, and Wang Zhenming held 254070,000 shares to 2273 yuan shares, a total of 5774The ** of 270,000 yuan was transferred to Huimei Kangteng.
Photo.com, based on VRF protocol).
Wang Zhenming, who previously served as a medical supervisor of Sumai Medical, resigned in August 2021. As for why Wang Zhenming transferred out all his equity during the preparation for the company's listingIn the reply letter to the inquiry, Sumai Medical said that based on multiple factors such as his own capital needs, financial investor positioning, the current high exit valuation and the cumbersome post-listing process, Wang Zhenming chose to transfer all the equity to withdraw from the issuer and realize his investment income as an early external investor.
However, Wang Zhenming was not the only one who made the equity transfer during the preparation for the company's listing. Zhao Weiwei, the start-up shareholder, also twice ** Sumai Medical, cashed out 5880530,000 yuan. On December 10, 2022, Zhao held 29330,000 shares were transferred to Huimei Kangteng for 10 million yuan, and on December 12 of the same year, Zhao only held 143 shares of the company170,000 shares to 4,880530,000 yuan of ** was transferred to Ziyao Chuangjing.
As for the reason why Zhao Weiwei transferred part of the equity, Sumai Medical said that Zhao Weiwei chose to transfer a small part of the company's shares held by Zhao Weiwei in consideration of his age and the needs of his retirement life, and realized part of the investment income.
However, in addition to Wang Zhenming and Zhao Weiwei, the shareholding institutions are also transferring shares in advance. Yida Achievement and Small and Medium-sized Enterprises** invested in the company in July 2020 and transferred part of their equity in the company to Huimei Kangteng and Songbai Dental in December 2022. In this equity transfer, Yida achievements and small and medium-sized enterprises made a profit of more than 10 million yuan respectively from the transfer of equity.
However, in April 2023, Songbai Dental was unable to provide shareholder penetration verification information on time, and transferred the above-mentioned transferred equity parity to the company's four actual controllers, Li Xiangdong, Wang Jilong, He Jin and Zhou Weizhong.
After several equity transfers, at present, the shareholding structure of Sumai Medical is relatively dispersed, of which the largest shareholder Li Xiangdong holds 1812%, holding less than one-third of the voting rights, the company has no controlling shareholder. Li Xiangdong, Wang Jilong, He Jin, and Zhou Weizhong control a total of 6418% of the shares, and signed the "Concerted Action Agreement", as the company's joint actual controller. However, the company does not have a controlling shareholder, which may lead to the "free ride" psychology of shareholders and weaken the supervision and participation in the company's operation and management.
On the whole, there are still many problems faced by Sumai Medicine. In recent years, the dental surgical microscope has contributed nearly eighty percent of the company's revenue, but the company's overall gross profit margin is declining to grab the market at a low price. In this case, the company is also actively laying out surgical microscope products to create a second growth curve, but the current revenue contribution of surgical microscope products is only a few million yuan, accounting for only 52%, still need to continue to develop the market. However, with only 30 R&D personnel and 59 sales personnel, it is still unknown whether it will be able to win a larger market share.
Note: The title image in the article is from the photo network and is based on the VRF protocol.