(Report Producer/Author: Kaiyuan Securities, Cai Mingzi) 1. After thirty years of hard work, the top ten medical devices in the world are just around the corner 1.

1.1. Deep cultivation, innovation and internationalization have made it the industry leader

Mindray Medical was established in 1991 , mainly engaged in the research and development, manufacturing, marketing and services of medical devices, the company Its main business covers the three major fields of life information and support, in vitro diagnosis, and medical imaging . Through cutting-edge technological innovation, it provides more complete product solutions to help the world improve medical conditions and improve diagnosis and treatment efficiency. The "Ruizhilian" IT solution, the "Ruiying Cloud++" imaging cloud service platform and the "Mindray Intelligent Inspection" laboratory IT solution launched in recent years have jointly built the "Three Rui Ecosystem", realizing the company's transformation from a medical device product supplier to Transformation into a smart medical solution provider. After thirty years, the company has become China's largest and the world's leading supplier of medical devices and solutions.

(1) 1991 to 2002: The three major product layouts began to take shape, and the distribution model first entered the international market.

The company was founded in 1991 by senior technical personnel such as Mr. Li Xiyan, Mr. Xu Hang, and Mr. Cheng Minghe. It established the first One year, I mainly worked as an agent for monitoring products, and in the second year, I embarked on the road of independent research and development and independent brands. Since 1993, it independently developed China's first multi-parameter monitor , and in 2002, it independently developed China's first all-digital black-and-white ultrasound diagnostic system and fully automatic blood cell analyzer. The company has been in the field of life information and support, in vitro diagnosis The product layout in the three major fields of , medical imaging and medical imaging has begun to take shape, and it has also formed an enterprise's competitive advantage with research and development as its core competitiveness. As the domestic market expands, the company also embarks on a globalization journey with a forward-looking vision, adopting a distribution model in the international market, and continuously increasing the penetration rate of and in the middle and low-end markets that European and American brands do not pay attention to.

(2) 2003 to 2008: The domestic market took off and the international market gradually penetrated

After the SARS incident in 2003, thanks to the country’s increased emphasis on health construction and the rapid growth of national health investment, the company’s domestic business Revenue grew rapidly. At the same time, the company's coverage in the international market has gradually deepened, and it began to establish overseas offices in 2006. The high cost performance of its products and the scale effect of its multi-track layout have enabled the company's international market penetration to continue to deepen and its internationalization level to increase. In 2006, the company was listed on the New York Stock Exchange as China's first medical equipment company. In 2007, the company's overseas revenue exceeded domestic revenue for the first time, and the share of overseas revenue exceeded domestic revenue. This situation continued until 2015, when internationalization was successful.

(3) 2008 to 2015: M&A and integration to enter the international high-end market and expand business richness. During the

period, the company adopted M&A and integration as one of its growth strategies. In 2008, the company acquired Datascope and brought its patient monitoring equipment business under its umbrella. This veteran company's market share in the U.S. monitor market is second only to giants such as GE, Philips, etc. After the acquisition, the company occupied 50% of the market share in the monitoring market of small and medium-sized hospitals with less than 300 beds in the United States, and quickly entered the high-end market. From 2011 to 2014, the company successively acquired Shenzhen Science and Technology Co., Ltd., Suzhou Wison, Zhejiang Greenland, Changsha Tiandiren, Hangzhou Guangdian, Wuhan Deke Bayer , Shanghai Yiguang, Beijing Prism, and Zonare More than ten companies, including , Ulco and Shanghai Changdao, have continued to enrich the three major product lines and have also begun to deploy seed businesses such as minimally invasive surgery and orthopedics. Among them, the company acquired Zonare, a leading American company in ultrasound diagnostic systems, in 2013. Based on its advanced technology, it launched the high-end color ultrasound product Resona7 in 2015, achieving a breakthrough in domestic high-end color ultrasound.

At this stage, the company is leading its domestic peers in terms of merger and acquisition efficiency, number of targets, and size.The merger and acquisition strategy, on the one hand, achieves the high-end of the company's monitors, ultrasound and other equipment, with the main goal of acquiring technical resources, and uses this as an opportunity to improve its competitiveness in the mid-to-high-end equipment industry with high barriers and long R&D cycles. Successfully broke into the international high-end market; on the other hand, the company's product line is increasingly enriched, fully covering the three major fields, and the synergy effect is reflected. The minimally invasive surgery and orthopedics and other businesses laid out in advance also provide the company with future emerging business growth vitality. (Report source: Future Think Tank)

(4) 2016 to present: International and domestic two-wheel drive, global giants are just around the corner

In 2016, the "13th Five-Year Plan" National Science and Technology Innovation Plan issued by the State Council proposed "accelerating the promotion of digital diagnosis and treatment equipment" "Localization, high-end, branding", domestic substitution is gradually accelerating, promoting the strong growth of domestic business and increasing the company's share of the high-end equipment market. In 2018, the company was listed on the Shenzhen Stock Exchange's GEM and became the leader in the domestic medical device industry.

As the COVID-19 epidemic swept the world in 2020, the company quickly responded to market demand, quickly resumed work and production on a large scale based on its strategic reserves of raw materials in advance, and rapidly improved in the domestic and international markets. The epidemic has exposed the country's shortcomings in the health sector, and the new medical infrastructure launched in the post-epidemic era has further unleashed international and domestic market demand. In the international market,

has benefited from the overseas promotion opportunities provided by the epidemic and successful online promotion. With excellent product quality and professional localized after-sales support, the company has completed a breakthrough of nearly 2,000 high-end hospitals in the international market in 2021. , brand promotion is at least five years in advance. The company expects that the overall growth rate of the international market, especially developing countries, will continue to maintain in the next three to five years, and will become the company's twin growth engines alongside the Chinese market. The company has broad room for growth in overseas markets. The company's revenue in 2019 was US$2.4 billion, ranking 34th among global medical device companies in terms of revenue. The company is expected to be driven by the two-wheel drive of "overseas exports and domestic substitution" to enhance its global leadership in its field of deployment. It aims to become the top 20 global medical device suppliers in the short term and to enter the top 10 in the long term.

1.2. Adhering to its own product logic, the three major areas of collaborative development

The company adheres to its own product development logic, is customer demand-oriented, comprehensively considers technological relevance and synergy, and focuses on the three major areas of life information and support, in vitro diagnosis and medical imaging. The field continues to expand and enrich, and now has the most complete product line in China and strong product capabilities to meet the "one-stop" clinical needs of medical institutions.

1.2.1. In the field of life information and support, we are committed to covering perioperative needs

In the field of life information and support, the company has launched independently developed multi-parameter monitors in 1993, and subsequently launched anesthesia machines, ventilators, and electrocardiographs. , operating bed, operating light , pendant suspension bridge, infusion pump, defibrillator, minimally invasive surgery series of products, etc., constantly enriching the product line, committed to covering the entire process before, during and after surgery, and providing overall solutions for the operating room/intensive care unit (OR/ICU). In 2019,

company launched the IT solution for the life information and support business segment - Ruizhilian system, which uses information technology to realize bedside device interconnection, data collection and integration, device holographic database construction, and data query and application.

Ruizhilian system realizes interconnected devices and breaks information islands. The interconnection between devices is realized through the Internet of Things, and all information equipment data is connected to the hospital equipment management system through a unified connector (BeneLink device interconnection integration module) to facilitate data collection and integration. The equipment holographic database is constructed to complement and organically combine with the hospital's existing clinical database, further solving the problem of equipment information islands.

Efficient use of equipment information to improve clinical work and equipment management.Ruizhilian's management center can perform real-time monitoring and alarming of patient bedside device data. Doctors can view patient data at any time based on the Internet mobile terminal, which greatly facilitates department handover and isolation ward viewing, greatly improving clinical work efficiency and patient monitoring safety. ; The systematic collection, integration and real-time query of data make it more convenient for experts outside the hospital to view on their mobile phones to guide front-line work and conduct cross-hospital remote consultations; real-time monitoring of basic equipment information also helps the hospital carry out refined equipment management and optimize equipment usage efficiency. The application scenarios of

are constantly expanding and the market performance is good. Relying on the comprehensive layout advantage of the company's product line, Ruizhilian continues to expand application scenarios and has currently launched multi-scenario solutions including hospital-wide, critical care, perioperative, emergency, cardiology, and general care. This solution is committed to improving the management and operational efficiency of medical institutions through information technology. It has been adopted and installed by many top hospitals including Peking Union Medical College Hospital, Tiantan Hospital, Shanghai Zhongshan Hospital, Wuhan Tongji Hospital and many other top hospitals. By the end of 2021, the plan has achieved a cumulative number of hospitals that have signed contracts with more than 200 hospitals, and more than 150 new hospitals will be added in 2021.

1.2.2. In the field of in vitro diagnostics, meeting various clinical testing needs

In the field of in vitro diagnostics, the company provides a series of fully automatic and semi-automatic in vitro diagnostic instruments and related reagents for laboratories, clinics and hospitals, blood cell analyzers , Biochemical analyzer , chemiluminescence immunoassay analyzer, coagulation analyzer, urine analyzer , microbial diagnostic system, etc. and related reagents cover eight routine inspection items. At the same time, relying on complete in vitro diagnostic instruments and reagents, the company also customizes packaged solutions based on the different clinical needs of each first-level hospital, such as Mindray Demonstration Laboratory, Mindray Standard Laboratory, and Mindray Standard Laboratory.

Based on the company’s practical experience in establishing 20 demonstration laboratories, 200 standardized laboratories, and 200 standardized laboratories in the past five years, the company released the Mindray Intelligent Inspection Laboratory Solution in March 2021 to achieve lean efficiency improvements— While "checking calmly", we will promote the construction of intelligent disciplines - "Cloud Intelligence" and promote innovative integrated development - "Rui Wujie".

Mindray Intelligent Inspection Laboratory achieves "convenient inspection". Many management elements in the medical laboratory, such as man-machine, material, method and environmental testing, are linked with the Internet of Things throughout the entire process. Based on this, a quality control management system is launched to facilitate efficient inspection of the status of instruments related to daily quality control; a reagent management system is launched to realize reagent management Digitize the entire process from suppliers to laboratory warehouses, department refrigerators, and testing systems; launch smart large screens to facilitate intelligent real-time analysis and reminders of IoT information, and intelligent summary of quality control reports.

Mindray Intelligent Inspection Laboratory promotes "cloud intelligence" and "Rui Wujie". Currently, the company is building a cloud reading and cloud intelligence system based on the blood cell analysis-film pusher-reader assembly line solution to realize a cross-hospital cloud professional communication community and learning platform, and promote "cloud intelligence" and "Rui Wujie" development and improvement. Cloud film reading can encourage doctors and technicians in the laboratories, laboratories, and clinical departments of the main hospital and branch hospitals to carry out disease-centered multidisciplinary integrated exchanges, and improve the reporting ability of difficult film readings. Cloud intelligence can break the limitations of time and space, making medical staff dynamically autonomous Arrange study. Across campuses and disciplines, we continue to innovate, integrate, and expand boundaries.

optimizes the detection process and has high market recognition. Mindray's intelligent testing laboratory solution greatly optimizes the testing process, improves management quality, and at the same time integrates multi-disciplinary communication for difficult film readings to improve diagnostic levels. As an integrated detection system + professional IT cloud smart diagnosis and treatment overall solution, it has significant advantages and has been recognized by the market after its launch. It has been installed in nearly 60 hospitals across the country, 60% of which are tertiary hospitals and . Hospitals include Chang'an Hospital Affiliated to the First Affiliated Hospital of Xi'an Jiaotong University, Tianyou Hospital Affiliated to Wuhan University of Science and Technology, Sichuan Cancer Hospital, Dongli Campus of Sichuan People's Hospital, Shenzhen Maternal and Child Health Care Hospital Hospital, Shenzhen First People's Hospital, etc.

1.2.3. In the field of medical imaging, rational layout to meet market demand

Medical imaging equipment currently widely used in clinical applications includes X-ray imaging systems (XR), computed tomography (CT), magnetic resonance imaging systems (MRI) and ultrasonic diagnostic systems Four categories. Comprehensive equipment application fields, nature of use, cost and technology, etc., the company has made choices and rational layout, focusing on ultrasonic diagnostic equipment and X-ray imaging systems (XR), and launched the "Ruiying Cloud++" imaging cloud service platform.

"Ruiying Cloud++" focuses on building an interactive communication platform. Based on the previous research and development and layout of related remote products, the company launched the "Ruiying Cloud++" imaging cloud service platform in 2020. By connecting Mindray imaging devices and users' cloud ecological application platform, relying on iSync multi-channel audio and video Synchronous live broadcast technology and u-Link instant image acquisition technology realize "fast, stable and true" remote imaging, creating a three-dimensional interactive communication medium for ultrasound medical workers. The advantages of

epidemic acceleration platform are highlighted, and remote interaction improves the level of diagnosis and treatment. In the epidemic environment, the advantages of the "Ruiying Cloud++" imaging cloud service platform have been reflected, and its popularization has been accelerated. Remote teaching and training on ultrasound remote quality control in medical consortiums/chain medical institutions, and integration of POC departments and ultrasound department business It is well used in multiple application scenarios such as / conferences, gathering case discussions, and cloud classroom discussion communities. This solution enables ultrasound medical workers to communicate remotely based on their condition, helping to improve the overall diagnosis and treatment level of medical community /medical consortium. With the expansion of application scenarios, it will be conducive to further realizing refined management of chronic diseases and palliative care in the future. The current situation of uneven distribution of resources. The superiority of the

solution has been recognized by the market, and the installed capacity is growing rapidly. The program has also been widely recognized by the market since its launch. As of the end of 2021, Ruiying Cloud++ has achieved a cumulative installed capacity of more than 1,300 units, with more than 1,100 new installed units in 2021, a significant acceleration in installation speed. Installed hospitals include Shenzhen Baoan District People's Hospital, The First Affiliated Hospital of Sun Yat-sen University , China Resources Wuhan Iron and Steel General Hospital , etc. In 2021, Ruiying Cloud++ achieved a growth rate of 182% in new users and a growth rate of 218% in active users, and its implementation projects have covered more than 20 provinces, municipalities, and autonomous regions in China.

1.3. The ownership structure is stable and core employees are fully motivated.

The company has concentrated ownership and the core management and key employees are fully motivated. The founders of the company, Mr. Li Xiting, Mr. Xu Hang, and Mr. Cheng Minghe, all have technical backgrounds. They have more than 30 years of management experience and rich experience. The senior management team joined the company at an early stage, and their majors cover management, electronic technology, marketing, applied information and engineering, biomedical engineering , law, etc., with diverse and intersecting backgrounds, and are continuously promoted from more basic business departments. Have both medical device technology and management experience. The company's management structure is relatively stable, which is conducive to the consistency and implementation of strategies, and has established a good governance environment for the company's continued growth. As of January 12, 2022, Mr. Li Xiting indirectly holds 26.9% of the company's shares through Smartco Development, and Mr. Xu Hang indirectly holds 24.43% of the company's shares through Magnifice (HK) Limited. The two are persons acting in concert. In addition, they also hold 24.43% of the company's shares through Magnifice (HK) Limited. Long and Ruifu indirectly hold 3.38% and 3.2% of the shares respectively, and collectively hold approximately 57% of the company's shares. Ever Union, controlled by Mr. Cheng Minghe, holds 4.4% of the company. The three company founders, Mr. Li Xiting, Mr. Xu Hang and Mr. Cheng Minghe, hold 30.00%, 27.24% and 4.40% of the company's shares respectively, ensuring their consistency with the company's interests.

The company released the draft 2022 employee stock ownership plan on January 19, 2022. The participants in this employee stock ownership plan are core personnel and technical backbones, no more than 2,700 people, accounting for 23%. As of September 1, 2021, the company has repurchased a total of 3,048,662 shares of the company through centralized bidding transactions for the implementation of equity incentives. The highest transaction price of its repurchase was 335.00 yuan/share, the lowest transaction price was 316.18 yuan/share, and the total amount paid was 1 billion yuan (including transaction fee ).(Report source: Future Think Tank)

This employee stock ownership plan will help fully mobilize the enthusiasm of employees and improve team cohesion. The performance assessment target is that compared with 2021, the growth rate of net profit attributable to the parent company from 2022 to 2024 will be no less than 20%, 44%, and 73% respectively. The high performance growth targets set also fully reflect the company's future performance growth and development prospects. confidence.

1.4. Continue high investment in R&D to forge strong product capabilities.

insists on independent innovation and research and development, and has deployed scientific research centers around the world. Since its inception, company has always adhered to the independent research and development model. The company adheres to "customer orientation" and " concurrent engineering " as the two cores of the R&D system, responds to market demand, fully considers many aspects such as raw material procurement costs, production and assembly processes, product transportation and assembly in advance, and significantly improves R&D efficiency. The company has gradually built a comprehensive development and innovation system - Medical Product Innovation (MPI), clearly defining the responsibilities of cross-functional governance teams at all levels, standardizing the development management process, clarifying phased goals, and promoting efficient development and innovation. At present, the company has ten R&D centers with global layout, located in Shenzhen, Wuhan, Nanjing, Beijing, Xi'an, Chengdu, Silicon Valley in the United States, New Jersey in the United States, Seattle in the United States and Europe.

attaches great importance to talent reserves and insists on high investment in scientific research. Company attaches great importance to the reserve of scientific research talents. As of the end of 2021, there are 3,492 R&D engineers, accounting for 23.78% of the total number of employees, ranking first in the industry. At the same time, it insists on investing heavily in scientific research. From 2018 to 2021, the company's total R&D investment was 1.42 billion, 1.65 billion, 2.10 billion, and 2.726 billion yuan, with a compound annual growth rate as high as 24.28%. The proportion of R&D expenditures in operating income remained at About 10%.

's strong scientific research strength has yielded numerous patents and forged strong product capabilities. As of March 31, 2022, the company had applied for a total of 7,631 patents, including 5,472 invention patents; a total of 3,555 patents were authorized, including 1,666 invention patents. At the same time, relying on strong scientific research strength and advanced technology, the company continues to launch a series of innovative products and solutions with significant clinical value around the three major product line areas, revitalizing the product line.

1.5. New infrastructure promotes market expansion, and the recovery of regular demand drives business growth.

Life information and support, in vitro diagnostics, and medical imaging are the company's top three revenue sources. In recent years, the company's business revenue has maintained rapid growth. From 2016 to 2021, the compound growth rate of revenue was 22.85%. The growth rate climbed from 2016 to 2017, then fell slightly. In 2020, when the new crown epidemic broke out, the revenue growth rate reached a peak of 27.0%. In 2021, the revenue growth rate was 20.18%, maintaining steady growth.

The company’s life information and support business achieved operating income of 11,153.4726 million yuan in 2021, a year-on-year increase of 11.47%. The good growth of this business is mainly due to the gradual development of new medical infrastructure in China, led by the expansion of large public hospitals. In addition, demand for non-epidemic-related businesses that were suppressed by the epidemic gradually recovered, and both AED and minimally invasive surgery seed businesses achieved rapid growth. The in vitro diagnostic business of

company achieved operating income of 8,448.6266 million yuan in 2021, a year-on-year increase of 27.12%. On the one hand, it benefits from the recovery of conventional reagent consumption driven by routine diagnosis, physical examination, and surgical resuscitation. On the other hand, it benefits from the BC-7500 CRP that integrates high-end fluorescence five-classification, fully automatic peripheral blood sampling, and high-speed CRP joint detection. The company's in vitro diagnostic business has grown rapidly due to the rapid increase in volume of its hit new products. In 2021, the company's blood cell business surpassed imported brands for the first time and became the first in the country. The medical imaging business of

company achieved operating income of 5,425,521,500 yuan in 2021, a year-on-year increase of 29.29%. With the gradual resumption of routine diagnosis and treatment, physical examination and ultrasound procurement activities around the world, the medical imaging business has achieved restorative and high growth.

1.6, international and domestic, two-wheel drive performance growth

From a regional perspective, both the domestic and international markets maintained high-speed positive growth from 2014 to 2018, and the domestic market had a compound annual growth rate of 18.33%, a growth rate higher than that of the international market. 7.70% of the market, its contribution to revenue continues to increase, and its proportion of total revenue increased from 66.63% in 2014 to 2018 74.42% per year. At this stage, the domestic market has become the core market driving business growth.

From 2019 to 2020, the international market grew rapidly and its contribution to revenue continued to increase. Thanks to the promotion opportunities provided by the epidemic, the company's international brand recognition continued to increase, further opening up the international market. Revenue contribution in 2021 is 39.61%, a decrease of 7.55% from 2020. The decline in proportion is mainly due to the overseas market growth rate of 0.96% in 2021 being lower than the domestic market growth rate of 37.34%.

The COVID-19 epidemic has brought great challenges to the medical and disease control systems of various countries around the world, and has caused countries to increase their emphasis on medical investment. Domestically and internationally, sporadic epidemics in some areas and new infrastructure after normalization of business will stimulate further release of equipment demand. The international market and the domestic market will be driven by two wheels, jointly promoting the company's performance growth.

1.7. Operating efficiency continues to improve, and profitability steadily improves

From 2014 to the first quarter of 2022, the company's gross profit margin has basically remained at 65%, and cost control has been good. With the increase in business income and improvement in operating efficiency, the company's net sales profit margin has steadily increased, reaching 31.67% in 2021, and profitability continues to improve.

3.1. New medical infrastructure promotes market expansion, and Mindray Medical becomes the biggest beneficiary manufacturer

As the subsequent epidemic prevention and control has become normalized, the country has also successively introduced relevant policies. Provide instructions for the construction of the medical system, and provide financial support to implement new medical infrastructure.

On June 21, 2021, the National Development and Reform Commission issued the "Implementation Plan for the Construction of a High-Quality and Efficient Medical and Health Service System during the 14th Five-Year Plan". The plan proposes that by 2025, with the joint efforts of the central and local governments, a high-quality and efficient integrated medical and health service system with a complete system, reasonable layout, clear division of labor, complementary functions, close collaboration, efficient operation, and resilience will be basically established; major epidemic prevention and control The level of treatment and response to public health emergencies has been significantly improved, significant progress has been made in the construction of major bases such as national medical centers and regional medical centers, all-round full-cycle health services and support capabilities have been significantly enhanced, and the traditional Chinese medicine service system has become more complete, striving to provide the general public with People enjoy public services nearby Accessible, systematic and continuous high-quality medical and health services.The construction tasks mentioned in the plan include further transforming and upgrading infectious disease prevention and treatment facilities, building sufficient negative pressure wards, convertible intensive care units, and convertible hospital (ward) areas, and strengthening infectious disease anatomy rooms and clinical teaching. Construction of facilities such as housing and emergency supplies storage space, equipped with ventilators, extracorporeal membrane oxygenation (ECMO), mobile CT, infectious disease isolation and transfer devices and other medical equipment. If conditions permit, mobile biosafety level three laboratories, Mobile nucleic acid testing laboratory. This will further increase the demand for medical devices by my country's medical and health institutions and benefit the development of the industry.

Under macro policies, provinces have also implemented them one after another to accelerate the construction of local medical and health systems. All provinces and cities have accelerated the construction of new medical infrastructure and provided financial support.

Since domestic new medical infrastructure projects are dominated by the expansion of large public hospitals, the procurement demand for medical equipment is mostly based on large hospital-level projects. The company's three major business lines cover equipment such as ICU, CDC, and infectious disease hospitals. demand, while relying on complete products to provide overall solutions for all departments, which better meets the market demand for new infrastructure.

(1) The construction of ICU wards has brought an incremental space of 23.2 billion yuan to the medical device industry.

After the COVID-19 epidemic, in order to increase the total medical and health care volume, adjust the medical care structure, improve infectious disease screening and treatment capabilities, and at the same time prevent and control the second epidemic Since the outbreak of the epidemic in March 2020, the domestic market has increased the construction of ICU wards, infectious disease hospitals, fever clinics, etc. On May 20, 2020, the National Development and Reform Commission, the National Health Commission, and the State Administration of Traditional Chinese Medicine jointly issued the "Public Health Prevention, Control and Treatment Capacity Building Plan". The document pointed out that under the severe epidemic risks at home and abroad in the future, strengthen It is an urgent task to build public medical and health institutions to effectively improve my country's ability to prevent, control and treat major epidemics. The policy proposes "modernizing the disease prevention and control system", "comprehensively improving the treatment capabilities of county-level hospitals", "improving and improving urban infectious disease treatment networks", "renovating and upgrading major epidemic treatment bases", "promoting the transformation of public facilities for both peacetime and wartime use" Five major construction goals.

is aimed at the expansion of intensive care unit (ICU) beds in county-level hospitals, urban medical institutions and provincial-level major epidemic treatment bases and the emergency treatment material reserves of provincial-level major epidemic treatment bases. According to the following table, it is estimated that the domestic medical device market will be Bringing an expansion of RMB 23.2 billion.

(2) The high-quality development project of public hospitals is expected to bring a market increase of 5.72 billion yuan

The "Implementation Plan for the Construction of a High-Quality and Efficient Medical and Health Service System during the "14th Five-Year Plan"" points out: Upgrading major medical research platform facilities such as national key laboratories and equipment level, improve clinical diagnosis and treatment infrastructure conditions, and appropriately deploy large-scale medical equipment in advance. For national regional medical centers included in the establishment plan, the focus will be on strengthening the construction of business premises, the purchase of medical equipment, the construction of informatization and scientific research platforms, establishing telemedicine and education platforms, and accelerating the intelligent transformation and upgrading of diagnostic and treatment equipment. Expansion and construction of provincial high-quality medical resources are being carried out. Select and build about 120 provincial-level regional medical centers, upgrade the level of large-scale equipment and strengthen the construction of smart hospitals.

(3) The "Thousand Counties Project" implements hierarchical diagnosis and treatment, unlocking business opportunities of 10 billion yuan

On October 21, 2021, at the press conference of the National Health Commission, relevant leaders emphasized that further attention should be paid during the "14th Five-Year Plan" period Regarding the construction of national medical centers and regional medical centers, “on the basis of the existing layout of 10 national medical centers and 26 regional medical centers, the scope of construction will be expanded to 2023. The regional medical center will cover all provinces in 2018, and the construction work will be basically completed by the end of the 14th Five-Year Plan period. "About 120 provincial-level regional medical centers will be built during the 14th Five-Year Plan period." "Strive to have a top-level hospital in every prefecture and city." “By 2025, we will promote a number of county-level hospitals to reach the level of third-level hospitals.”

Subsequently, the National Health Commission released the "Thousand County Project" County Hospital Comprehensive Capacity Improvement Work Plan (2021-2025)" on October 27, 2021, committed to "promoting provincial and municipal high-quality medical resources to sink to counties, Combined with the county hospital standard improvement and capacity expansion project, we will make up for the shortcomings in the county hospital's medical service and management capabilities, and gradually realize the medical resources within the county. "Integration and Sharing" to enhance the medical service capabilities of county-level hospitals and meet the basic medical service needs of county residents. The goal is that by 2025, at least 1,000 county hospitals across the country will reach the medical service capabilities of third-level hospitals. The

document proposes "relying on county hospitals to build five major clinical service centers such as tumor prevention and treatment, chronic disease management, minimally invasive intervention, anesthesia and pain diagnosis and treatment, and intensive care", and "further strengthening chest pain, stroke, trauma, critical maternal treatment, critically ill children and newborns" "Five emergency centers for pediatric treatment and other emergencies", "continuous improvement of hardware conditions", "taking the county medical community as the Carrier, relying on county hospitals to build five interconnected centers for resource sharing of medical testing, medical imaging, electrocardiogram diagnosis, pathology, disinfection supply, etc." In the future, the construction and investment in hospitals and medical institutions at county level and below will further release primary medical equipment market demand. With its comprehensive product lines and solid bottom-line market penetration, the company is expected to benefit from the market expansion brought about by the "Thousand Counties Plan". (Source of the report: Future Think Tank)

(4) The construction of traditional Chinese medicine hospitals and maternal health care hospitals is expected to bring an increase in equipment procurement of 8.47 billion yuan

On March 29, 2022, the General Office of the State Council released the "14th Five-Year Plan for the Development of Traditional Chinese Medicine" , by 2025, the health service capabilities of traditional Chinese medicine will be significantly enhanced, the high-quality development policy and system of traditional Chinese medicine will be further improved, and the traditional Chinese medicine Revitalization and development have achieved positive results, and the unique advantages in building a healthy China have been fully utilized. Emphasis was placed on further improving the traditional Chinese medicine service system. The traditional Chinese medicine service system that integrates preventive health care, disease treatment and rehabilitation is gradually improved, the grassroots service capabilities of traditional Chinese medicine continue to improve, the service level of integrated traditional Chinese and Western medicine continues to improve, and traditional Chinese medicine participates in the prevention and treatment of emerging infectious diseases and the emergency response to public health incidents Capabilities are significantly enhanced.

The "14th Five-Year Plan for the Development of Traditional Chinese Medicine" involves the construction of traditional Chinese medicine hospitals, including: (1) The construction of a national medical center of traditional Chinese medicine. Rely on traditional Chinese medicine hospitals with strong comprehensive strength and high management level to build a national medical center of traditional Chinese medicine, promote the solution of major problems, and lead the development direction of national traditional Chinese medicine academics. (2) Construction of national regional medical centers. Use national high-level traditional Chinese medicine hospitals in areas rich in high-quality medical resources as export hospitals to implement national regional medical center construction projects and promote a balanced distribution of high-quality traditional Chinese medicine medical resources. (3) Construction of key hospitals with traditional Chinese medicine characteristics. Focusing on prefecture-level TCM hospitals, we will build about 130 key hospitals with TCM characteristics that have outstanding TCM characteristics, significant clinical effects, and obvious demonstration and driving effects. (4) Construction of county-level traditional Chinese medicine hospitals. Strengthen the capacity building of county-level TCM hospitals. Support the infrastructure construction of county-level traditional Chinese medicine hospitals in poverty-stricken areas, "three districts and three prefectures", the former Central Soviet Area, and relocation areas for poverty alleviation and resettlement. At the same time, it emphasizes the integration of traditional Chinese and Western medicine, (1) the construction of "flagship" hospitals and "flagship" departments in collaboration with traditional Chinese and Western medicine. Support the construction of about 50 "flagship" hospitals for the collaboration of traditional Chinese and Western medicine, build a number of "flagship" departments for the collaboration of traditional Chinese and Western medicine, and strengthen infrastructure construction and equipment configuration. (2) Building clinical collaboration capabilities of traditional Chinese and Western medicine. Continue to carry out clinical collaboration between Chinese and Western medicine, carry out joint research on major difficult diseases, infectious diseases and chronic diseases, gradually establish clinical efficacy evaluation standards for integrated Chinese and Western medicine, select and form a catalog of dominant diseases, and form about 100 integrated Chinese and Western medicine diagnosis and treatment plans or Expert consensus.

The "Implementation Plan for the Construction of a High-quality and Efficient Medical and Health Service System during the "14th Five-Year Plan"" mentions the project of promoting the inheritance and innovation of traditional Chinese medicine and the construction of a national TCM disease prevention and control base. The construction of about 35 national TCM disease prevention and control bases covering all provinces, a single The project will not exceed 100 million yuan; the construction of "flagship" hospitals for the collaboration of traditional Chinese and Western medicine will build about 50 "flagship" hospitals for the collaboration of traditional Chinese and Western medicine, and the configuration of diagnostic and treatment equipment with traditional Chinese medicine characteristics will be strengthened. A single project will not exceed 100 million yuan. Yuan; for the construction of key hospitals with traditional Chinese medicine characteristics, about 130 key prefecture-level traditional Chinese medicine hospitals with outstanding traditional Chinese medicine characteristics, significant clinical efficacy, and obvious demonstration and driving effects will be selected. A single project shall not exceed 100 million yuan. As a result, the construction of traditional Chinese medicine hospitals is expected to bring an expansion space of 4.3 billion yuan to the domestic medical device market.

The "Implementation Plan for the Construction of a High-quality and Efficient Medical and Health Service System during the "14th Five-Year Plan"" mentions that each province will support the construction of one provincial-level obstetrics and gynecology project, increase support for the construction of county-level obstetrics, gynecology, and pediatrics, and achieve provincial, municipal, and provincial-level obstetrics and gynecology projects. Each county has one standardized maternal and child health care institution. To meet this financial standard, the maximum investment subsidy amount within the central budget for a single project of provincial obstetrics, gynecology, and pediatrics construction projects shall not exceed 200 million yuan, and the maximum amount for prefecture-level maternal and child health care institutions shall not exceed 50 million yuan. As a result, the market expansion space brought by the construction of maternal and child hospitals is 4.17 billion yuan. In addition, on April 15, 2022, the National Health Commission issued the "Medical Equipment Equipment Standards for Maternal and Child Health Care Institutions", which clarified 193 categories of basic equipment for secondary maternal and child health care institutions. On the basis of the items, 56 types are added, and qualified second-level maternal and child health care institutions can refer to the standards of third-level maternal and child health care institutions for selection. Multi-level policy support brings strong certainty to the expansion of the medical device market.

In summary, including a series of new medical infrastructure projects such as ICU ward construction, hospital renovation and expansion, Thousand County Projects, and the construction of traditional Chinese medicine and maternal insurance hospitals, it is expected to bring about 47.4 billion in accessible market growth to the company during the 14th Five-Year Plan period.

3.2. The company is actively deploying in overseas emerging markets and is expected to continue China's path.

In 2019, my country's total import and export of medical devices was US$55.487 billion, an increase of 21.16% compared with 2018. Among them, the import value was US$26.785 billion, a year-on-year increase of 20.84%; the export value was US$28.702 billion, a year-on-year increase of 21.46%. At this stage, my country's exports of medical devices are still dominated by mid- to low-end products. However, in recent years, the foreign trade structure has continued to be optimized, the proportion of high-end medical device products has increased, the cost-effectiveness of medical consumable products has increased significantly, and the quality and efficiency have continued to improve. The pace of import substitution for some high-end medical device products, such as imaging and IVD products, is gradually accelerating, and their recognition in the international market is gradually increasing. Some domestic manufacturers are strategically positioned in the international market and have achieved initial success in developing markets in developed countries.

With the outbreak of the new coronavirus epidemic, countries have increased investment in medical care, and overseas market demand has been released, with broad prospects. The company has been intensively cultivating overseas markets for more than 20 years and is expected to expand the international market with this help.

3.2.1. The company's sales network is spread all over the world, and the growth rate of international emerging markets is expected to exceed that of domestic

(1) The scale of overseas markets is growing steadily, and the market in developing countries is the main driver.

The company has subsidiaries in more than 30 countries, and its products are exported. More than 190 countries and regions, and has reached long-term cooperative relationships with leading medical institutions in the United States, the United Kingdom, Italy, Spain, Germany, France and other countries.

company's overseas markets cover Europe, North America, Latin America, Asia-Pacific and other overseas regions. The size of the market segments has basically maintained steady growth. Latin America, Asia-Pacific and other developing countries have maintained a high market growth rate, and their share has gradually increased. In 2021, the Asia-Pacific market will grow at a rate of 40.43%, becoming an important driving force for overseas markets, with its share gradually expanding to 8.6%. Due to lower growth rates, the European market and North American market share fell to 9% and 7.4%. In the future, markets in developing countries such as Asia-Pacific and Latin America are expected to be the main drivers of the rapid growth of the company's overseas markets.

(2) Overseas markets are blooming everywhere, and strategies adapted to local conditions are formulated.

European high-end customers are able to break through, and sharp knife products collaborate with other products to open up the market.

In the European market, the company adopts a "direct sales + distribution" sales model, and the company's products continue to enter European high-end medical groups, general hospitals and specialist hospitals. In 2021, the company broke through about 130 new high-end customers (including high-end laboratories), and promoted horizontal breakthroughs in the business of about 250 existing high-end customers.

has entered the post-epidemic era. In order to improve the disease control system and meet clinical needs, some European countries have increased investment in medical care. The company's accessible market in Europe has further expanded. The company is gradually introducing products in the three major business fields in the European market. It plans to open up the market through mature sharp knife products in each production line and collaboratively drive other products into the market. At the same time, the company has further improved its localization layout in Europe, comprehensively benchmarked the Chinese market, and established a more detailed channel management system and assessment mechanism. With market expansion and the company's further development, the European market is expected to continue to bring rapid performance growth.

concentrates on polishing its products, and the North American market has grown steadily. Company has been in the North American market for more than 20 years and has established a relatively mature direct sales model. Currently, the company has established a localization team of more than 500 people in the United States, and its projects cover nearly 10,000 terminal medical institutions in North America. With strong product strength, the company's products have entered 2/3 of U.S. hospitals, and the company's monitors, anesthesia machines and POC ultrasound market share ranks among the top three in the United States. In 2021, the company broke through high-end customer groups in the North American market, including the University of Washington Medical Center, St. Bernard Medical Center, Chambers Memorial Hospital, etc. In recent years, the company's growth in the North American market has slowed down, but as North America is the highland of the global medical device market, the company plans to continue to polish its products and export mature products, and is expected to maintain stable growth in the future.

ROW has great market potential and is expected to replicate China's marketing experience and achieve rapid growth. The outbreak of the COVID-19 epidemic has brought great challenges to the medical and disease control systems of various countries around the world, exposed the shortcomings of their medical and health systems, and caused countries to increase their emphasis on medical investment, especially in developing countries. The level of medical construction in developing countries is similar to that of China a few years ago. In terms of equipment ownership and per capita medical expenditure, there is more room to release market potential than the European and American markets. In this regard, the company has stepped up the construction of both product and marketing organizational structures. On the one hand, the company is guided by the clinical needs of customers in developing countries, increasing investment in research and development, and comprehensively introducing the company's product lines and overall solutions; on the other hand, the company fully replicates China's marketing system construction experience in developing countries and builds a matrix The company has a formal organizational structure, with regions and production lines each performing their own duties and collaborating efficiently. At the same time, localization construction is strengthened based on the original "direct sales + distribution" sales model. Relying on market expansion and improved brand recognition, the company is expected to usher in rapid growth in developing countries.

blood cell assembly line has entered large Brazilian laboratories to achieve efficient and reliable automatic detection. CientíficaLab is one of the largest diagnostic laboratories in Brazil, providing clinical testing services to 26 hospitals and 883 outpatient clinics in the Brazilian public sector. CientíficaLab headquarters conducts up to 9,000 routine blood tests every day. Routine blood samples are independently tested on more than a dozen analyzers and slide pushers. It faces problems such as low efficiency, high equipment failure rates, errors caused by a large number of manual operations, and heavy workload for employees. In response to the problems it faced, the company provided it with a tailor-made blood automation solution—two sets of high-performance CAL8000 blood cell assembly lines, equipped with labXpert data analysis software, to realize detection automation, automatically retest abnormal blood samples, and be able to Achieve rapid acquisition and efficient management of test result information. The customized CAL 8000 assembly line realizes the automation, standardization, efficiency and reliability of the work process, saves labor costs, and brings great convenience to daily laboratory testing. In 2021, the company achieved the exclusive supply of blood cells at DASA RJ, Brazil's largest laboratory chain.

The Indian market has a large equipment gap and is expected to expand rapidly based on infrastructure. The company has been deeply involved in the Indian market for decades. The Indian subsidiary has been operating since 2006 and has established regional offices in Gurgaon, Mumbai, Chennai and Kolkata. The regional sales and service network has also been gradually established and improved.India has become one of the countries with the largest and fastest growing business volume in the Asia-Pacific market. With the outbreak of the epidemic, India's medical system is under pressure, there is a serious shortage of medical resources, and medical equipment has been in short supply for a long time. During the epidemic in August 2020, the company provided hundreds of patient monitors to the Pune College of Engineering's first large-scale COVID-19 treatment base. As India promotes the construction of new medical infrastructure, the company is expected to realize rapid expansion of the Indian market by taking advantage of its supply gap.

focuses on the high-end market in Russia and gradually achieves customer breakthroughs. The company established a branch in Russia in 2007 to promote localization. More than 80% of the company's employees are local employees, providing medical solutions to more than 8,000 medical institutions across the country. During the epidemic, the company provided a variety of medical equipment such as monitors, ventilators, infusion pumps, and ultrasound machines for hospitals providing epidemic prevention and treatment. At present, the company has successfully broken through many federal hospitals and high-end public laboratories. The development stage of the Russian medical device market is similar to that of the domestic market. The improvement of treatment capabilities has become its current demand evolution trend, and the demand for minimally invasive surgery, high-end products, and information-based overall solutions is increasing day by day. The company relies on the high-end customer market that has achieved breakthroughs and strengthens market penetration, and is expected to achieve new growth in the future.

The African market has great potential, and high-quality products and after-sales services have achieved rapid penetration. The company entered the African market in 2002 and has provided medical equipment to 50 countries. It has set up offices in 5 countries including Egypt, Morocco, Kenya, South Africa, and Nigeria. It has more than 40 local African employees and the market basically covers the entire African market. African continent. In 2021, the company supported the medical construction in Africa, donated or provided technologically advanced color ultrasound equipment to Egypt at preferential prices, and cooperated with top local universities and public teaching hospitals to build 4 training centers and 13 training schools. The African market has great potential for medical devices. Medical device manufacturers in Europe, the United States and other countries have been exploring the African market earlier. However, there are problems such as high product prices and inadequate after-sales services. The company has gained recognition in the African market with its appropriate technology, cost-effective products and good services. The current per capita equipment ownership in the African market is low, the market has large room for growth, and demand is rapidly released. It is expected to become one of the important markets driving the company's performance growth.

(3) The sales model adapts to local conditions and expands the depth and breadth of sales.

The company's sales model includes direct sales and distribution. Overall, the company adopts a sales model dominated by the distribution model. From 2015 to 2018, the company's distribution revenue accounted for more than 75% of the total revenue, and the proportion is increasing year by year. The distribution model uses the advantages of dealers' sinking regional promotion and rapid response to increase the breadth and depth of the areas covered by the company's products, which to a certain extent drives the rapid growth of the company's revenue.

For the domestic market, the company adopts a sales model with distribution as the mainstay and direct sales as the supplement. In the process of overseas promotion, the company places more emphasis on adapting to local conditions. In some countries and regions where it is difficult to find good dealer resources, it mainly adopts the direct sales model. It also adopts the distribution model for areas with good dealer resources and customers who cannot rely on full coverage of direct sales teams. In the North American market, the company adopts a direct sales model, establishes a professional direct sales team, and cooperates with the four major group purchasing organizations in the United States. The project covers nearly 10,000 terminal medical institutions in North America. In the European market, the company adopts a "direct sales + distribution" sales model, and the company's products continue to enter European high-end medical groups, general hospitals and specialist hospitals. In developing countries, the company adopts a distribution-based sales model and establishes a complete and wide-coverage marketing system.

(4) The overseas promotion effect is excellent, and the international market is gradually penetrating

In the process of responding to the global COVID-19 epidemic, the company has shared valuable clinical experience from China with the world by building an online communication platform and joining hands with ultrasound experts across the country. Helping global medical institutions fight against the COVID-19 epidemic, online publicity has achieved excellent results and the company's brand awareness has significantly increased.The epidemic has given the company an opportunity to promote overseas. In 2021, the company achieved a breakthrough of adding more than 700 high-end customers in the international market, advancing the company's brand promotion by at least five years.

relies on its strong product strength and benefits from the continuous improvement of international brand reputation. The company is expected to promote further penetration of products in the international market and drive the international market to become a market with the same rapid growth as the domestic market. With international and domestic dual-wheel drive, it is expected to become a global leader in medical devices.

3.2.2. Inspiration from international giants: adhere to localized operations and continuously penetrate and upgrade customer groups

We believe that the international expansion strategy of global industry leaders has reference significance for the company. With reference to the internationalization and localization processes of many of the world's medical giants, we have summarized the following proven strategies: (1) In terms of business layout, we pay attention to the global industry layout and integrate important production, research and development, procurement and other links in a timely manner. Move to target markets to better utilize local talent resources and respond more quickly to customer needs. (2) In terms of operation and management, build an organizational structure that empowers local entities on matters, and actively attract local outstanding talents into core management, so that local entities can get rid of dependence on the headquarters and make effective decisions quickly. (3) In terms of business compliance, attention should be paid to local laws and regulations such as intellectual property rights and national security review, and prudent trade strategies and systematic assessments should be adopted in cooperation. (4) In terms of international cooperation, carry out extensive and in-depth cooperation with local upstream and downstream enterprises, build relationships starting from products, deepen the supply chain, and finally achieve industrial collaborative innovation. (5) In terms of operating brand development, increase publicity in international technology exhibitions, find gaps and opportunities from overseas market segments, develop cost-effective single products to quickly enter, and coordinate with the introduction of other products. By carefully creating suitable popular products and local services for overseas customers, we have continuously penetrated and upgraded to enter overseas high-end customers and build a brand image. (6) In terms of market expansion, joint ventures can be used to connect partners’ local suppliers, customers and government ecosystems and take root in the international market. In addition, it also improves the company's ability to resist risks through cross-border mergers and acquisitions in capital markets that have not yet been laid out, upstream and downstream channels, and provides companies with higher competition barriers.

4. Based on the three major production lines, steadily expand high-potential new businesses

4.1. Life information and support: The leading position is solid, and the market share is steadily increasing.

Life information and support products include anesthesia machines, ventilators, electrocardiographs, and operating beds. , operating lights, pendant bridges, infusion pumps, defibrillators, etc., dedicated to covering the entire process before, during and after surgery, and are the company's largest source of business income. In recent years, business revenue scale and profitability have grown steadily. In 2020, the revenue growth rate was as high as 54.18%, stimulated by epidemic demand. In 2021, demand fell and the growth rate slowed down. The growth mainly benefited from the market expansion under domestic new infrastructure. The gross profit margin level continues to rise, climbing from 61.45% in 2014 to 66.39% in 2021. Monitors, anesthesia machines, light bed towers, defibrillators and epidemic prevention rookie ventilators are the main products under this business segment. (Source of the report: Future Think Tank)

4.1.1. Monitor: No. 1 in China, third in the world, expected to maintain global leadership

(1) Monitoring products have a complete range, and volume growth drives revenue growth

Medical monitors are a kind of medical monitor that measures patients Physiological parameters are compared with known set values. If they exceed the standard, the device system will alarm. At the same time, it will continue for 24 hours. Monitor the patient's physiological parameters hourly, detect changing trends, and point out critical situations for doctors to handle emergency situations and provide treatment. In the past, monitors were mainly used for the monitoring of critically ill patients, and later developed to the monitoring of ordinary wards. With the improvement of economic development and the increase in the popularity of medical monitors, the use scenarios of monitors have continued to expand, reaching the county and township levels. Medical institutions.

company has a rich and complete range of monitoring products. Many series of products fully cover the high, middle and low markets. They are suitable for various clinical scenarios such as intensive care, sub-intensive care, routine monitoring, ward rounds/triage monitoring, etc. It has launched wearable monitoring systems and transport monitoring systems. , telemetry monitoring system, central monitoring system, handheld oximeter and other monitoring products to meet various special needs.

With a complete range of product categories, the company's monitoring product sales continue to grow, from 136,000 units in 2017 to 280,000 units in 2020, with a compound growth rate of 27.1%, and volume drives revenue growth.

(2) Dominates the domestic market and continues to penetrate the international market.

Thanks to the acquisition of the patient monitoring equipment business of Datascope, an established American company, in 2008, the company quickly entered the high-end monitor market and quickly opened up the global market based on this. The company's monitor business ranks first in China's market share and third in the global market. In the domestic market, the company occupies an absolutely dominant position and is expected to further leverage its advantages as a domestic industry leader with the help of domestic substitution and new medical infrastructure. In the international market, the company plans to further penetrate the markets of developing countries with its complete product categories and continue to maintain its leading global share.

4.1.2. Anesthesia machine: high-end products continue to develop, and market share continues to increase.

(1) Product performance is good, and demand is fully covered.

Anesthesia machine is a semi-open anesthesia device that delivers anesthetics into the patient's alveoli through a mechanical circuit. The partial pressure of the anesthetic gas is formed, and after it diffuses into the blood, it directly inhibits the central nervous system, thus producing the effect of general anesthesia.

company's anesthesia machine products include high-end A series, mid-to-low-end WATO series and anesthesia vaporizer V60 series. The A series was innovatively developed by the North American international R&D team and positioned in the high-end market. After entering the international market, it quickly grew into one of the three mainstream brands in the field of anesthesia machines in North America and the world with its good product performance.

(2) Based on the mid-to-low-end market share, the market share has steadily increased, and it has broken through the high-end to further expand its share.

company's domestic anesthesia machine market increased from 11% in 2017 to 29% in 2019, surpassing GE and becoming the domestic leader after Dräger. The second anesthesia machine manufacturer. The company's advantages are concentrated in the mid-to-low-end market, and it is expected to replace international brands in the high-end market to further expand its share. Currently, the company's anesthesia machines rank third in the world and third in the United States. It has performed well in developing international markets, but has large room for growth and is expected to penetrate further.

4.1.3. Defibrillator: The first to break the import monopoly, the domestic market space is large

(1) The market demand is expanding, and the industry scale is growing rapidly. Defibrillator uses a strong pulse current to pass through the heart to eliminate arrhythmia and restore it. A medical device for sinus rhythm and a necessary emergency equipment in the operating room.

The development of defibrillators in my country started relatively late, starting in 2006, and has a history of only more than ten years. In 2013, the company released China's first biphasic wave defibrillator product, pushing the defibrillator industry into a stage of popularization and development. At the same time, with the widespread exposure of cardiovascular disease risk factors, cardiovascular disease deaths have become the leading cause of death among residents, accounting for more than 40% of the total, and the demand for defibrillators is increasing.

(2) Independent innovation and research and development breaks the monopoly and seizes the market with technological advantages.

As the first company to launch China’s first biphasic wave defibrillator product and the first domestic company to independently develop an AED product, the company has significant technical advantages in the competition among domestic manufacturers. Currently, the company has deployed defibrillation monitors and AEDs (automated external defibrillators), with AEDs as a developing seed business. The company has launched three defibrillation monitors, which adopt biphasic wave defibrillation technology, are good at defibrillation, improve the success rate of defibrillation, integrate monitoring, have remote transmission functions, support data diagnosis and treatment, and have good product performance.

From 2017 to 2021, the company's defibrillator sales have grown rapidly, with the annual growth rate remaining above 34%, and the average annual compound growth rate as high as 53.39%. In 2021, the sales growth rate of defibrillators is as high as 93.1%, with volume driving revenue growth.With the rapid growth of the market for medical defibrillators, provincial and municipal policies promote the deployment of AEDs in public places. The company is expected to benefit from market expansion and further seize market share.

4.1.4. Ventilator: The epidemic situation has normalized, and sales at home and abroad have increased rapidly.

(1) Ventilator configuration is insufficient, and the market needs to be expanded.

Ventilator is an effective method in modern clinical medicine that can artificially replace the autonomous ventilation function and is universally applicable. In respiratory failure, anesthesia respiratory management during major surgery, respiratory support treatment and emergency resuscitation. According to statistics from the American Respiratory Society, the widespread use of ventilators has increased the success rate of clinical rescue by approximately 55%. It plays an important role in preventing and treating respiratory failure, reducing complications, and saving and prolonging patients' lives.

my country’s ventilator consumption increased from 7,800 units in 2012 to 18,200 units in 2019, with an average annual compound growth rate of 12.9%, a rapid growth. However, ventilators are still insufficiently configured, and the industry has large room for growth. During the COVID-19 epidemic, my country had 80,000 ventilators in stock, corresponding to 57 ventilators per million people. Compared with European and American countries, there is still a large gap in the number of ventilators per million people in my country. As the star of the fight against the epidemic, ventilators play an important role in treating the epidemic. As the subsequent epidemic becomes normalized, the ventilator market in China and even the world is expected to further expand.

(2) The SV series of ventilators performed well, with international and domestic sales exceeding

. Currently, the company's ventilators have launched the SV series and NB series. Among them, SV300 is the model mainly used in the COVID-19 epidemic. It obtained emergency use authorization certification from the FDA in March 2020, and had previously obtained the EU CE certification. As the first electric turbine ventilator in China, SV300 is the result of collaborative research between R&D teams in China, Northern Europe and North America. It breaks through core technology, is flexible and easy to use, and is clinically universal. The domestic market share of

's ventilators in 2019 was 13%, ranking second after Draeger. During this epidemic, with its superior product performance, the company's ventilators have continued to gain brand recognition during the domestic and international anti-epidemic processes, and are expected to achieve further sales breakthroughs in the international and domestic markets as the epidemic normalizes.

4.1.5. Lightbed tower: market share is steadily increasing, and the overall layout is accelerating to break through.

(1) The lightbed tower is fully laid out, and is expected to return to increase in volume after the epidemic.

The lightbed tower refers to some basic hardware equipment in the operating room, including surgery Lamps, operating beds, pendant towers, suspension bridges, etc. The operating table can be adjusted according to surgical requirements to fully expose the surgical field of view. The shadowless lamp provides sufficient, uniform, and shadowless lighting for surgery, and can work continuously for a long time without emitting too much heat. The suspension tower suspension bridge provides gas and electricity supply and equipment loading equipment for the operating room.

company has a comprehensive layout of light bed towers, and its products mainly include HyLED series surgical lights, HyBase and UniBase series surgical beds, and HyPort series pendant towers and suspension bridges. The company's surgical lights achieve intelligent uniform light spot control to ensure light intensity, high performance and low consumption, improving the surgical lighting experience. The operating table has precise and stable electric control functions, allowing medical staff to efficiently complete surgical positioning. The medical pendant provides multi-screen installation solutions, has a touch screen control system, can realize coaxial configuration of lighthouses, and is equipped with a patient transfer system to meet clinical needs and improve work efficiency.

company's light bed tower sales maintained rapid positive growth from 2018 to 2019, both above 30%. Affected by the epidemic, sales declined in 2020. In 2021, as the epidemic is gradually controlled and surgeries become routine, sales will grow by 104%. In the future, it is expected to continue to benefit from the rebound in demand and continued growth.

(2) The market share has steadily increased, and the market has made breakthroughs in synergy.

There are many players in the domestic light bed tower market. International manufacturers include global operating room and ICU equipment leaders Draeger and McVie, and domestic manufacturers include Sundragon and BenQ Mitutoyo. , Medilan, etc., their share in the domestic market in 2018 was similar to that of the company. The company's light bed tower ranks first in China and seventh in the world, and its market share has steadily increased. The company is expected to further achieve breakthroughs by leveraging its full product line layout advantages and market synergy.

4.2. In vitro diagnostics: market share is steadily increasing and is expected to become a new star in performance growth

In vitro diagnostics, or IVD, refers to obtaining clinical diagnostic information by testing samples such as human body fluids, cells, and tissues in vitro, and then judging diseases or Diagnostic methods of body function. At present, about 80% of clinical diagnostic information comes from in vitro diagnosis, and IVD has become an indispensable medical method for disease prevention, diagnosis and treatment.

The global in vitro diagnostic market size was US$71.4 billion in 2019, maintaining a compound growth rate of 4.87% from 2014 to 2019. It is expected that with the growth of medical demand and technological advancement in the future, the market will further expand and maintain stable growth. The in vitro diagnostic business of

company can be divided into in vitro diagnostic reagents and in vitro diagnostic analyzers. The proportion of reagents is slightly higher than that of instruments, accounting for 54.32% in 2017. The company's in vitro diagnostic business covers blood cell testing, biochemical analysis and testing, chemiluminescence immunoassay, coagulation testing, urine testing and microbial testing, etc., basically covering all conventional testing items. From 2016 to 2021, the company's in vitro diagnostic business has an average annual compound growth rate of 24.7%, maintaining rapid growth and is expected to become the largest business segment driving the company's performance growth.

4.2.1. Blood cell diagnosis: Domestic leader, market share is expected to increase

(1) Segmented coverage needs, product performance is excellent

Blood cell analysis is a quantitative analysis of blood cells and other formed components in the blood by detecting blood samples. . The blood cell analyzer is its testing and analysis instrument and is widely used in clinical testing. The blood cell analyzers of

company include five-category blood cell analyzer, three-group blood cell analyzer, fully automatic cell morphology analyzer and Taihang blood analysis assembly line. The

three-group blood cell analyzer divides white blood cells into lymphocytes, monocytes, and granulocytes based on impedance and colorimetry; the five-partition blood cell analyzer divides white blood cells into lymphocytes, monocytes, and granulocytes ( Neutrophils, eosinophils, basophils), the medium and low five-classification analyzers are based on chemical staining and flow cytometry, and the high-end five-classification analyzers are based on specific fluorescence staining and scattering-fluorescence three-point analysis technology. Base. Low-end three-category products and high-end five-category products help cover market demand. On this basis, the company also launched a fully automatic cell morphology analyzer and Taihang blood analysis assembly line. The

fully automatic cell morphology analyzer opens up a new era of automated microscopy, which can accurately capture and classify pathological characteristics, help screen for blood diseases, automatically obtain instrument results, and intelligently read films. Among them, the company's BC-5390CRP series products can achieve five categories + CRP joint detection in one minute. CRP (C-reactive protein) is an acute phase response protein with a very low concentration (5 mg/L) in the serum of healthy people, but the concentration increases significantly during bacterial infection or tissue damage. Five-category + CRP joint testing has become the main trend in the upgrading of the blood analysis market. The

blood analysis pipeline is composed of an automatic blood smear preparation instrument and a fully automatic blood cell analyzer to realize automatic pipeline analysis and significantly improve inspection efficiency.

(2) Steady growth coupled with upgrading and upgrading, market share has steadily increased

China’s blood analysis market has grown from 2.74 billion in 2013 to 5.39 billion in 2019, with an average annual compound growth rate of 11.94%. The industry is expected to grow steadily. At the same time, the upgrading needs with five categories + CRP joint inspection as the main trend are superimposed.

4.2.2. Biochemical analysis and diagnosis: The market structure is fragmented, and high-end products continue to be developed

(1) The development of biochemical diagnosis is relatively mature, and foreign companies occupy the high-end market.

Biochemical diagnosis refers to the in vitro determination of inorganic elements through biochemical reactions, immunoturbidimetry, etc. , protein, blood sugar, blood lipids and other biochemical indicators are one of the basic diagnostic methods and the earliest and most mature IVD segment. Biochemical diagnosis developed early in China, accounting for more than 50% of the in vitro testing market in the early days. Later, as the market share of immunoassays, molecular diagnostics, and POCT continued to grow, the market share of biochemical diagnosis continued to decline.

Biochemical instruments have experienced technological progress from manual, semi-automatic to fully automatic biochemical analyzers. Currently, many domestic manufacturers are able to produce fully automatic biochemical analyzers. At present, domestic biochemical instruments are mainly concentrated in the low-end and low-speed market, while imported biochemical instruments still occupy the main high-end and high-speed market, with a localization rate of about 50%. Biochemical reagents have basically achieved import substitution, and the localization rate is about 70%.

(2) Focus on high-end products to break through competitive difficulties. The biochemical analyzers currently launched by

include fully automatic biochemical analyzers, modular biochemical detection systems and Tianhe biochemical immunoassay assembly lines. Among them, the SAL9000 product of Tianhe's biochemical immunoassay assembly line can provide "biochemical + immune" testing packages for 11 disease categories, including liver disease, kidney disease, ion and acid-base metabolism, cardiovascular disease, endocrine disease, tumor disease, etc. There are more than 140 testing items in total.

In China's biochemical analyzer market in 2017, international brands Hitachi and Beckman occupied 27% and 22% of the market share respectively. Excluding the two international manufacturers, players such as Roche, Siemens, Olympus, and Toshiba have similar market shares. The market is relatively dispersion. The company occupies 9%, making it the domestic brand with the highest market share. It is expected to break through the competition dilemma with its high-end products. (Source of the report: Future Think Tank)

4.2.3. Chemiluminescence immunodiagnosis: Mergers and acquisitions of upstream companies reduce costs and increase efficiency, and are expected to grow rapidly in the future

(1) The chemiluminescence immunodiagnosis market is large and has growth potential

Immunodiagnosis refers to the application of immunoassays Learn the theories, techniques and methods to diagnose various diseases and determine immune status. Immunodiagnostics is the largest field in in vitro testing, accounting for 38% of the total IVD market in 2019. Immunodiagnosis includes chemiluminescence, enzyme-linked immunoassay, radioimmunoassay, etc. Enzyme-linked immunoassay is low-cost and can be operated on a large scale, while chemiluminescence is sensitive, fast, stable, highly selective, reproducible, easy to operate, and has flexible and diverse methods. Due to its advantages such as high sensitivity and other technical properties, chemiluminescence has gradually become dominant. The proportion of chemiluminescence in China's immunodiagnostic market is increasing year by year, accounting for 85% by 2019. Chemiluminescence accounts for more than 90% of immunodiagnosis abroad, and China’s chemiluminescence market still has large room for growth.

(2) Mergers and acquisitions help self-research and produce core raw materials, and are expected to grow rapidly in the future.

The company has currently launched a number of fully automatic chemiluminescence immunoassay analyzers. At the same time, the company acquired Hytest Invest Oy and its subsidiaries in 2021. Founded in 1994, Haitide Biotechnology is the world's top professional in vitro diagnostic upstream raw material supplier. It has the innovation, original research and self-production capabilities of high-quality antigens and antibodies, and has advantages in cardiac markers, tumor markers, infectious diseases, inflammation, coagulation, etc. It has established a rich product portfolio and accumulated technology in the field. The ability to self-research and produce immune raw materials is an important guarantee for the clinical performance, quality and supply safety of reagents. The company's acquisition of Haitide Biotech has filled many gaps in the field of top raw materials for upstream in vitro diagnostics in China, enhanced the company's self-research and production capabilities in the field of core raw materials, and helped solve the "stuck neck" problem in the supply of upstream raw materials for in vitro diagnostics.

Compared with other in vitro testing sub-sectors such as biochemical diagnosis, the domestic production rate of the immunodiagnostic market is the lowest. In 2018, international manufacturers such as Roche, Abbott, Beckman, and Siemens accounted for more than 80% of the domestic chemiluminescence market. The company's newer industry, Antu, two domestic manufacturers, started late, but their revenue scale expanded rapidly, and their market share closely followed the two domestic manufacturers. In the future, it is expected to further break through core technologies, improve product lines, and expand market share.

4.3. Medical imaging: sales breakthrough, quickly occupying the high-end market

Medical imaging equipment refers to the application of various physical signals including visible light, X-rays, ultrasound, strong magnetic fields, etc. to the human body for the purpose of diagnosis or treatment guidance. , a technical device that records the signal intensity distribution fed back by the human body, forms an image, and enables doctors to interpret human body structure and disease information from it.

focuses on business, dominated by color ultrasound.The medical imaging equipment currently widely used in clinical applications of includes four categories: X-ray imaging system (XR), computed tomography (CT), magnetic resonance imaging system (MRI) and ultrasonic diagnostic system. Based on the application fields, nature of use, cost and technology of comprehensive equipment, the company has made some choices, focusing on ultrasonic diagnostic equipment and X-ray imaging systems (XR). Among them, color ultrasound is the company’s main force in the field of medical imaging, growing rapidly from 2016 to 2017. Affected by the decline in the number of routine physical examinations due to the epidemic, sales of desktop ultrasound have slowed down, and the growth rate of the medical imaging business segment has slowed down. It is expected to recover after the epidemic.

4.3.1. Ultrasound diagnostic equipment: The leader in the color ultrasound industry, focusing on high-end

(1) The ultrasound market has grown considerably, and the industry leader in color ultrasound sales

Ultrasound diagnostic equipment uses the physical characteristics of ultrasound and the differences in the acoustic properties of human organs and tissues to form waveforms, Medical equipment that displays the physiological conditions of diseases in the form of curves or images to help diagnose diseases. The markets in overseas developed countries started early, and the market tends to be saturated and growth is slowing down. However, China is an emerging incremental market. The aging population and increasing health awareness have brought about growth in demand. At the same time, innovative factors such as the expansion of ultrasound technology application scenarios and technological innovation have opened up new markets. Create new market space. China's ultrasound equipment market size was 9.92 billion yuan in 2020 and is expected to grow to 21.62 billion yuan in 2030, with a compound growth rate of 8.1%. The color ultrasound mainly operated by

company is a device that uses ultrasonic Doppler technology and ultrasonic echo principles to simultaneously collect blood flow movement, tissue movement information and imaging of human organs and tissues. Compared with ordinary B-ultrasound, color ultrasound adds pseudo color, which is more effective for Two-dimensional black and white images are processed in color to achieve better imaging effects. In 2013, the company acquired Zonare, a leading US company in ultrasonic diagnostic systems, and achieved a breakthrough in domestic high-end color ultrasound based on its advanced technology. At present, the company's color ultrasound has developed a series of products around whole-body imaging, women's health, clinical ultrasound, basic medical care and liver fiber equipment, achieving full coverage of the high, middle and low markets, and its market share has steadily increased, becoming the number one in both the desktop and portable markets in 2021 , desktop color supermarkets accounted for 26.91%, and portable color supermarkets accounted for 39%.

(2) Bottom line market advantage is significant, high-end breakthroughs expand share

Compared with 2018, the company’s market share in the domestic ultrasonic instrument market in public medical institutions was 19.4%, ranking second. In recent years, the company has benefited from domestic substitution and market penetration. The rate continues to increase, and the leading advantages of domestic brands are demonstrated. With a comprehensive product line, the company is based on the mid-to-low-end market. In 2018, the company's market share in community/township health centers among domestic public medical institutions at the municipal, county, and community/township hospitals was as high as 34%, reflecting the company's solidity. The foundation of the sinking market. With the implementation of hierarchical diagnosis and treatment policies, demand in the bottom-line market continues to be released, and the mid- to low-end market has significant advantages.

At the same time, the company continues to make breakthroughs into the high-end market. Based on Zonare's world-leading regional imaging technology ZONE-SonographyTM),

has launched high-end color ultrasound products such as Resona7, breaking the import monopoly in the field of high-end color ultrasound. At present, the company's latest Kunlun series of high-end color ultrasound has excellent advantages in technology platform, image quality, application fields, and ergonomic design, and has gradually entered the European and American high-end markets. As the company's first high-end product line, the Kunlun series is expected to further increase its volume in the international and domestic high-end markets, driving the company's continued breakthroughs in color ultrasound in the high-end market.

4.3.2. , clinical diagnosis of bone and joint, breast disease, biliary system and urinary system diseases.

In the global XR market, the Asia-Pacific region ranks first in market size, with compound annual growth rates of 5.2% and 4.9% from 2015 to 2020 and 2021-2030E respectively, which is slightly lower than the overall global level of 5.8% and 5.3%. The growth rate of China's XR market fluctuated greatly from 2015 to 2020, with a compound annual growth rate of 7.4%, higher than the global level.At present, my country's XR market has not yet been saturated. The market size in 2020 is approximately 12.38 billion yuan. It is expected that the market size will reach 20.60 billion yuan in 2030, with a compound annual growth rate of 5.2%.

XR equipment can be divided into general X-ray machines (GXR) and interventional X-ray machines (IXR) according to usage characteristics. GXR includes conventional DR, mobile DR, breast machine and gastrointestinal machine, all of which diagnose and examine diseases through X-ray photography; IXR It is mainly a C-arm X-ray machine, including large C-arm, medium C-arm and small C-arm. It is mainly used for monitoring X-ray during surgical operations. Radiography and photography. The products currently launched by

company cover the fields of conventional DR and mobile DR.

(2) Existing products have a good market share and are expected to achieve breakthroughs in high-end products.

Supported by national policies, domestic equipment has continued to increase its market share after nearly ten years of development, and has basically achieved import substitution in the field of DR and mobile DR equipment. Relying on its earlier layout and market penetration, the company achieved 5.3% and 9.4% shares in the conventional DR and mobile DR markets respectively in 2020. As competition from domestic manufacturers in the mid- to low-end market intensifies, the company continues to invest in scientific research, respond to market demand, and promote the development of XR equipment in the direction of mobility, dynamic multi-function and high-end, and is expected to achieve higher breakthroughs in the high-end market.

4.4. Seed business: layout the company’s new growth points in advance

4.4.1. Minimally invasive surgery: focusing on hard mirrors, domestic growth prospects are bright

Minimally invasive surgery refers to the use of special instruments, physical energy or Chemical agents are delivered into the human body to complete surgical operations such as inactivation, resection, repair or reconstruction of lesions, deformities, and wounds in the human body. It is a branch of medical science whose distinctive feature is that the trauma to the patient is significantly less than that of corresponding traditional surgery. Minimally invasive surgery is a major trend in the evolution of modern surgery. Currently, most general surgeries in departments such as general surgery, obstetrics and gynecology, urology, thoracic surgery, otolaryngology, and pediatrics can be minimally invasive through endoscopes. Surgery completed.

Endoscopic minimally invasive medical devices are divided into medical endoscopes, endoscopic surgical instruments and supporting facilities such as cameras and monitors. Medical endoscopes can be divided into laparoscopes, arthroscopes, otoscopes, nasopharyngoscopes, hysteroscopes, cystoscopes, gastroscopes, enteroscopes, etc. according to the application scenarios, among which they can pass through the natural orifice of the human body (esophagus, intestine, etc.) Endoscopes that can be bent at will are called flexible endoscopes (soft endoscopes). Correspondingly, an inflexible endoscope that allows the endoscope to enter the human body cavity or potential cavity by poking holes is called a rigid endoscope (rigid endoscope), including laparoscopy, arthroscopy, etc.

The company currently focuses on hard scopes and has launched a variety of hard scope systems including HyPixel U1, HyPixel™R1, HD3, and EC3, as well as the Reliance series of laparoscopic surgical instruments. Among them, the hard lens system restores true colors, clear images, and has excellent imaging performance. Relai series laparoscopic surgical instruments are made of imported high-performance materials, high-precision forceps design, and easy-to-use three-detachable structure, making them safe, easy to use, and durable. The company always serves clinical needs with excellent product performance. At present, the company's endoscopic minimally invasive medical device business is in its infancy, and its product categories are expected to be further enriched. Thanks to the general trend of minimally invasive surgery, this business is expected to become a new revenue growth point in the future. (Report source: Future Think Tank)

4.4.2. Animal medical treatment: Migrate technological advantages and lay out the pet medical market in advance

From 2015 to 2020, the scale of China’s pet market increased from 72.5 billion yuan to 298.8 billion yuan, with a compound growth rate of 32.74%. At the same time, it is expected to continue to grow at an annual growth rate higher than 12%. At the same time, the household pet keeping rate in China was 17% in 2019, significantly lower than the 67% in the United States, 62% in Australia, and 44% in the United Kingdom. The industry has large room for growth.

Ninety percent of pet owners keep pets for emotional reasons such as adding interest, relieving stress, and alleviating loneliness. As residents' living standards improve and they pay more and more attention to emotional consumption, the pet industry is expected to maintain rapid growth and continue to become standardized and mature.

has great potential in the pet medical market. The company has a forward-looking layout and established a dedicated animal medical subsidiary in 2020. Based on the high synergy of technology, it has migrated its human products and research and development advantages. Currently, it has established a network around three major product areas. A relatively complete animal medical line, providing corresponding solutions for four scenarios: pet hospitals, livestock farms, horse farms and rare animals. In the future, it is expected to further improve the product layout, expand application scenarios, and gradually increase the revenue contribution of this business.

4.4.3, AED: Policy implementation helps the industry expand, and technical advantages are expected to lead the industry

AED, an automated external defibrillator, is a portable medical device that can diagnose specific arrhythmias and deliver electric shock defibrillation in the best possible manner. Non-professionals can rescue cardiac arrest patients within the "golden four minutes" of rescue time, effectively preventing sudden death.

In 2019, the Chinese National Health Commission clearly stated in the "Healthy China Action (2019-2030)" document: "Improving the standards for first aid facilities and equipment in public places, including in schools, government agencies, enterprises and institutions, as well as airports, stations, and ports. Passenger terminals, large shopping malls, movie theaters and other crowded places are equipped with emergency medicines, equipment and facilities, and equipped with automated external defibrillators (AED)."

End In 2019, the number of AEDs per 100,000 people in mainland China was only 0.2, which is far lower than the international average of 100 units per 100,000 people. Various provinces and cities have introduced corresponding policies to further improve the configuration of AEDs in public places. The AED market Further expansion is expected.

company broke through multiple patent blocks of foreign companies and became the first company in China to independently develop AED products. It broke the monopoly of the original AED market by international giants such as ZOLL, Philips, and Promicon, and penetrated the domestic market with its cost-effective advantage. The rate continues to increase. The company's AED business is expected to benefit from further expansion of the industry and achieve rapid growth.

4.4.4. The orthopedic market has a high level of enthusiasm, and the business layout seeks growth.

Orthopedic consumables are one of the top five market segments in the medical device market. The global orthopedic consumables market has a market size of US$35 billion in 2020 and is expected to reach US$65 billion by 2030, with a compound growth rate of 6.25%. The market space is large and it maintains relatively stable growth. The Chinese orthopedic market is currently in a stage of rapid development, with the market growth rate remaining at around 15%, which is higher than that of the world, and the industry is highly prosperous.

Orthopedic implant consumables mainly include three major market segments: trauma, spine, and joints, with similar sizes. In 2019, they occupied 28.6%, 29%, and 27.9% of the overall market respectively. Overall, the three market segments show a competitive situation in which imported manufacturers occupy a larger share of the market, especially in the spine and joint categories where the technical threshold is relatively high. At present, thanks to the centralized procurement policy and domestic substitution of orthopedic consumables, the orthopedic implant consumables industry is expected to continue to increase industry concentration, and domestic leaders are expected to further expand their market share.

Currently, the company has a presence in four markets: trauma, spine, joints and biomaterials. In the trauma category, it has launched femoral intramedullary nails, combined external fixators, integrated external frames and other products, including wrist, We provide many sets of solutions for shoulders, knees, hips, etc. We have introduced thoracolumbar posterior fixation systems in the spine category, primary replacement systems, revision systems, etc. in the joint category, and artificial bone and other products in the biomaterial category. At present, the company's orthopedic consumables are still in the preliminary development stage, and are expected to further seize the market with their own product strength and domestic substitution, becoming an emerging growth point for the company's business.

5, investment analysis

5.1, key assumptions of the revenue model:

Benefiting from new medical infrastructure, active development of overseas markets, and increased penetration of high-end device products, we estimate that Mindray Medical’s operating income will CAGR 22.3% from 2022 to 2024, with net income attributable to the parent company during the same period Profit CAGR reached 22.9%.Viewed by business segment:

Life information and support: It is expected that the domestic income of the segment will continue to benefit from the increase in orders for ICU-related products driven by new medical infrastructure, while overseas income will benefit from the continuous penetration of high-end markets and the continuous development of demand for emerging markets. , segment revenue is expected to CAGR 17.1% from 2022 to 2024E, and gross profit margin is basically stable in the 66.0-66.5% area Time;

In vitro diagnostics: After completing the acquisition of Hytest, the company strengthened its self-research and production capabilities of upstream core raw materials for IVD, supported the research and development of high-end products, and gradually narrowed the technological gap with overseas leaders. Popular products such as BC-7500 The continued increase in CRP volume is expected to drive segment revenue growth. Segment revenue is expected to CAGR 25.2% from 2022 to 2024E, and gross profit margin is expected to remain at 25.2%. About 62%;

Medical imaging category: It is expected that color ultrasound business will continue to supplement high-end and ultra-high-end product lines. Segment revenue is expected to CAGR 20.5% in 2022-2024E, and gross profit margin will remain at around 66.3%.

’s four high-potential businesses: (1) Animal medical care (included in the three major business segments): The company’s business in this segment has significant competitive advantages in the country, and the segment revenue is expected to grow at a CAGR of 50% in 2022-2024E. (2) Minimally invasive surgery (included in the life information and support segment): Products such as rigid lenses benefit from technology and channel advantages, and segment revenue is expected to grow at a CAGR of 75% from 2022 to 2024E. (3) AED (including life information and support): The per capita ratio of domestic AED is still far behind that of developed countries. The company’s products rank first in the country, and the segment revenue is expected to have a CAGR of 50% in 2022-2024E. (4) Orthopedics (included in other main businesses): As the company’s intelligent production line is put into production, production costs are effectively reduced, and the segment revenue is expected to reach a CAGR of 100% in 2022-24E.

(This article is for reference only and does not represent any investment advice on our part. If you need to use relevant information, please refer to the original text of the report.)

Selected report source: [Future Think Tank]. Future Think Tank - Official website India has become one of the countries with the largest and fastest growing business volume in the Asia-Pacific market. With the outbreak of the epidemic, India's medical system is under pressure, there is a serious shortage of medical resources, and medical equipment has been in short supply for a long time. During the epidemic in August 2020, the company provided hundreds of patient monitors to the Pune College of Engineering's first large-scale COVID-19 treatment base. As India promotes the construction of new medical infrastructure, the company is expected to realize rapid expansion of the Indian market by taking advantage of its supply gap.

focuses on the high-end market in Russia and gradually achieves customer breakthroughs. The company established a branch in Russia in 2007 to promote localization. More than 80% of the company's employees are local employees, providing medical solutions to more than 8,000 medical institutions across the country. During the epidemic, the company provided a variety of medical equipment such as monitors, ventilators, infusion pumps, and ultrasound machines for hospitals providing epidemic prevention and treatment. At present, the company has successfully broken through many federal hospitals and high-end public laboratories. The development stage of the Russian medical device market is similar to that of the domestic market. The improvement of treatment capabilities has become its current demand evolution trend, and the demand for minimally invasive surgery, high-end products, and information-based overall solutions is increasing day by day. The company relies on the high-end customer market that has achieved breakthroughs and strengthens market penetration, and is expected to achieve new growth in the future.

The African market has great potential, and high-quality products and after-sales services have achieved rapid penetration. The company entered the African market in 2002 and has provided medical equipment to 50 countries. It has set up offices in 5 countries including Egypt, Morocco, Kenya, South Africa, and Nigeria. It has more than 40 local African employees and the market basically covers the entire African market. African continent. In 2021, the company supported the medical construction in Africa, donated or provided technologically advanced color ultrasound equipment to Egypt at preferential prices, and cooperated with top local universities and public teaching hospitals to build 4 training centers and 13 training schools. The African market has great potential for medical devices. Medical device manufacturers in Europe, the United States and other countries have been exploring the African market earlier. However, there are problems such as high product prices and inadequate after-sales services. The company has gained recognition in the African market with its appropriate technology, cost-effective products and good services. The current per capita equipment ownership in the African market is low, the market has large room for growth, and demand is rapidly released. It is expected to become one of the important markets driving the company's performance growth.

(3) The sales model adapts to local conditions and expands the depth and breadth of sales.

The company's sales model includes direct sales and distribution. Overall, the company adopts a sales model dominated by the distribution model. From 2015 to 2018, the company's distribution revenue accounted for more than 75% of the total revenue, and the proportion is increasing year by year. The distribution model uses the advantages of dealers' sinking regional promotion and rapid response to increase the breadth and depth of the areas covered by the company's products, which to a certain extent drives the rapid growth of the company's revenue.

For the domestic market, the company adopts a sales model with distribution as the mainstay and direct sales as the supplement. In the process of overseas promotion, the company places more emphasis on adapting to local conditions. In some countries and regions where it is difficult to find good dealer resources, it mainly adopts the direct sales model. It also adopts the distribution model for areas with good dealer resources and customers who cannot rely on full coverage of direct sales teams. In the North American market, the company adopts a direct sales model, establishes a professional direct sales team, and cooperates with the four major group purchasing organizations in the United States. The project covers nearly 10,000 terminal medical institutions in North America. In the European market, the company adopts a "direct sales + distribution" sales model, and the company's products continue to enter European high-end medical groups, general hospitals and specialist hospitals. In developing countries, the company adopts a distribution-based sales model and establishes a complete and wide-coverage marketing system.

(4) The overseas promotion effect is excellent, and the international market is gradually penetrating

In the process of responding to the global COVID-19 epidemic, the company has shared valuable clinical experience from China with the world by building an online communication platform and joining hands with ultrasound experts across the country. Helping global medical institutions fight against the COVID-19 epidemic, online publicity has achieved excellent results and the company's brand awareness has significantly increased.The epidemic has given the company an opportunity to promote overseas. In 2021, the company achieved a breakthrough of adding more than 700 high-end customers in the international market, advancing the company's brand promotion by at least five years.

relies on its strong product strength and benefits from the continuous improvement of international brand reputation. The company is expected to promote further penetration of products in the international market and drive the international market to become a market with the same rapid growth as the domestic market. With international and domestic dual-wheel drive, it is expected to become a global leader in medical devices.

3.2.2. Inspiration from international giants: adhere to localized operations and continuously penetrate and upgrade customer groups

We believe that the international expansion strategy of global industry leaders has reference significance for the company. With reference to the internationalization and localization processes of many of the world's medical giants, we have summarized the following proven strategies: (1) In terms of business layout, we pay attention to the global industry layout and integrate important production, research and development, procurement and other links in a timely manner. Move to target markets to better utilize local talent resources and respond more quickly to customer needs. (2) In terms of operation and management, build an organizational structure that empowers local entities on matters, and actively attract local outstanding talents into core management, so that local entities can get rid of dependence on the headquarters and make effective decisions quickly. (3) In terms of business compliance, attention should be paid to local laws and regulations such as intellectual property rights and national security review, and prudent trade strategies and systematic assessments should be adopted in cooperation. (4) In terms of international cooperation, carry out extensive and in-depth cooperation with local upstream and downstream enterprises, build relationships starting from products, deepen the supply chain, and finally achieve industrial collaborative innovation. (5) In terms of operating brand development, increase publicity in international technology exhibitions, find gaps and opportunities from overseas market segments, develop cost-effective single products to quickly enter, and coordinate with the introduction of other products. By carefully creating suitable popular products and local services for overseas customers, we have continuously penetrated and upgraded to enter overseas high-end customers and build a brand image. (6) In terms of market expansion, joint ventures can be used to connect partners’ local suppliers, customers and government ecosystems and take root in the international market. In addition, it also improves the company's ability to resist risks through cross-border mergers and acquisitions in capital markets that have not yet been laid out, upstream and downstream channels, and provides companies with higher competition barriers.

4. Based on the three major production lines, steadily expand high-potential new businesses

4.1. Life information and support: The leading position is solid, and the market share is steadily increasing.

Life information and support products include anesthesia machines, ventilators, electrocardiographs, and operating beds. , operating lights, pendant bridges, infusion pumps, defibrillators, etc., dedicated to covering the entire process before, during and after surgery, and are the company's largest source of business income. In recent years, business revenue scale and profitability have grown steadily. In 2020, the revenue growth rate was as high as 54.18%, stimulated by epidemic demand. In 2021, demand fell and the growth rate slowed down. The growth mainly benefited from the market expansion under domestic new infrastructure. The gross profit margin level continues to rise, climbing from 61.45% in 2014 to 66.39% in 2021. Monitors, anesthesia machines, light bed towers, defibrillators and epidemic prevention rookie ventilators are the main products under this business segment. (Source of the report: Future Think Tank)

4.1.1. Monitor: No. 1 in China, third in the world, expected to maintain global leadership

(1) Monitoring products have a complete range, and volume growth drives revenue growth

Medical monitors are a kind of medical monitor that measures patients Physiological parameters are compared with known set values. If they exceed the standard, the device system will alarm. At the same time, it will continue for 24 hours. Monitor the patient's physiological parameters hourly, detect changing trends, and point out critical situations for doctors to handle emergency situations and provide treatment. In the past, monitors were mainly used for the monitoring of critically ill patients, and later developed to the monitoring of ordinary wards. With the improvement of economic development and the increase in the popularity of medical monitors, the use scenarios of monitors have continued to expand, reaching the county and township levels. Medical institutions.

company has a rich and complete range of monitoring products. Many series of products fully cover the high, middle and low markets. They are suitable for various clinical scenarios such as intensive care, sub-intensive care, routine monitoring, ward rounds/triage monitoring, etc. It has launched wearable monitoring systems and transport monitoring systems. , telemetry monitoring system, central monitoring system, handheld oximeter and other monitoring products to meet various special needs.

With a complete range of product categories, the company's monitoring product sales continue to grow, from 136,000 units in 2017 to 280,000 units in 2020, with a compound growth rate of 27.1%, and volume drives revenue growth.

(2) Dominates the domestic market and continues to penetrate the international market.

Thanks to the acquisition of the patient monitoring equipment business of Datascope, an established American company, in 2008, the company quickly entered the high-end monitor market and quickly opened up the global market based on this. The company's monitor business ranks first in China's market share and third in the global market. In the domestic market, the company occupies an absolutely dominant position and is expected to further leverage its advantages as a domestic industry leader with the help of domestic substitution and new medical infrastructure. In the international market, the company plans to further penetrate the markets of developing countries with its complete product categories and continue to maintain its leading global share.

4.1.2. Anesthesia machine: high-end products continue to develop, and market share continues to increase.

(1) Product performance is good, and demand is fully covered.

Anesthesia machine is a semi-open anesthesia device that delivers anesthetics into the patient's alveoli through a mechanical circuit. The partial pressure of the anesthetic gas is formed, and after it diffuses into the blood, it directly inhibits the central nervous system, thus producing the effect of general anesthesia.

company's anesthesia machine products include high-end A series, mid-to-low-end WATO series and anesthesia vaporizer V60 series. The A series was innovatively developed by the North American international R&D team and positioned in the high-end market. After entering the international market, it quickly grew into one of the three mainstream brands in the field of anesthesia machines in North America and the world with its good product performance.

(2) Based on the mid-to-low-end market share, the market share has steadily increased, and it has broken through the high-end to further expand its share.

company's domestic anesthesia machine market increased from 11% in 2017 to 29% in 2019, surpassing GE and becoming the domestic leader after Dräger. The second anesthesia machine manufacturer. The company's advantages are concentrated in the mid-to-low-end market, and it is expected to replace international brands in the high-end market to further expand its share. Currently, the company's anesthesia machines rank third in the world and third in the United States. It has performed well in developing international markets, but has large room for growth and is expected to penetrate further.

4.1.3. Defibrillator: The first to break the import monopoly, the domestic market space is large

(1) The market demand is expanding, and the industry scale is growing rapidly. Defibrillator uses a strong pulse current to pass through the heart to eliminate arrhythmia and restore it. A medical device for sinus rhythm and a necessary emergency equipment in the operating room.

The development of defibrillators in my country started relatively late, starting in 2006, and has a history of only more than ten years. In 2013, the company released China's first biphasic wave defibrillator product, pushing the defibrillator industry into a stage of popularization and development. At the same time, with the widespread exposure of cardiovascular disease risk factors, cardiovascular disease deaths have become the leading cause of death among residents, accounting for more than 40% of the total, and the demand for defibrillators is increasing.

(2) Independent innovation and research and development breaks the monopoly and seizes the market with technological advantages.

As the first company to launch China’s first biphasic wave defibrillator product and the first domestic company to independently develop an AED product, the company has significant technical advantages in the competition among domestic manufacturers. Currently, the company has deployed defibrillation monitors and AEDs (automated external defibrillators), with AEDs as a developing seed business. The company has launched three defibrillation monitors, which adopt biphasic wave defibrillation technology, are good at defibrillation, improve the success rate of defibrillation, integrate monitoring, have remote transmission functions, support data diagnosis and treatment, and have good product performance.

From 2017 to 2021, the company's defibrillator sales have grown rapidly, with the annual growth rate remaining above 34%, and the average annual compound growth rate as high as 53.39%. In 2021, the sales growth rate of defibrillators is as high as 93.1%, with volume driving revenue growth.With the rapid growth of the market for medical defibrillators, provincial and municipal policies promote the deployment of AEDs in public places. The company is expected to benefit from market expansion and further seize market share.

4.1.4. Ventilator: The epidemic situation has normalized, and sales at home and abroad have increased rapidly.

(1) Ventilator configuration is insufficient, and the market needs to be expanded.

Ventilator is an effective method in modern clinical medicine that can artificially replace the autonomous ventilation function and is universally applicable. In respiratory failure, anesthesia respiratory management during major surgery, respiratory support treatment and emergency resuscitation. According to statistics from the American Respiratory Society, the widespread use of ventilators has increased the success rate of clinical rescue by approximately 55%. It plays an important role in preventing and treating respiratory failure, reducing complications, and saving and prolonging patients' lives.

my country’s ventilator consumption increased from 7,800 units in 2012 to 18,200 units in 2019, with an average annual compound growth rate of 12.9%, a rapid growth. However, ventilators are still insufficiently configured, and the industry has large room for growth. During the COVID-19 epidemic, my country had 80,000 ventilators in stock, corresponding to 57 ventilators per million people. Compared with European and American countries, there is still a large gap in the number of ventilators per million people in my country. As the star of the fight against the epidemic, ventilators play an important role in treating the epidemic. As the subsequent epidemic becomes normalized, the ventilator market in China and even the world is expected to further expand.

(2) The SV series of ventilators performed well, with international and domestic sales exceeding

. Currently, the company's ventilators have launched the SV series and NB series. Among them, SV300 is the model mainly used in the COVID-19 epidemic. It obtained emergency use authorization certification from the FDA in March 2020, and had previously obtained the EU CE certification. As the first electric turbine ventilator in China, SV300 is the result of collaborative research between R&D teams in China, Northern Europe and North America. It breaks through core technology, is flexible and easy to use, and is clinically universal. The domestic market share of

's ventilators in 2019 was 13%, ranking second after Draeger. During this epidemic, with its superior product performance, the company's ventilators have continued to gain brand recognition during the domestic and international anti-epidemic processes, and are expected to achieve further sales breakthroughs in the international and domestic markets as the epidemic normalizes.

4.1.5. Lightbed tower: market share is steadily increasing, and the overall layout is accelerating to break through.

(1) The lightbed tower is fully laid out, and is expected to return to increase in volume after the epidemic.

The lightbed tower refers to some basic hardware equipment in the operating room, including surgery Lamps, operating beds, pendant towers, suspension bridges, etc. The operating table can be adjusted according to surgical requirements to fully expose the surgical field of view. The shadowless lamp provides sufficient, uniform, and shadowless lighting for surgery, and can work continuously for a long time without emitting too much heat. The suspension tower suspension bridge provides gas and electricity supply and equipment loading equipment for the operating room.

company has a comprehensive layout of light bed towers, and its products mainly include HyLED series surgical lights, HyBase and UniBase series surgical beds, and HyPort series pendant towers and suspension bridges. The company's surgical lights achieve intelligent uniform light spot control to ensure light intensity, high performance and low consumption, improving the surgical lighting experience. The operating table has precise and stable electric control functions, allowing medical staff to efficiently complete surgical positioning. The medical pendant provides multi-screen installation solutions, has a touch screen control system, can realize coaxial configuration of lighthouses, and is equipped with a patient transfer system to meet clinical needs and improve work efficiency.

company's light bed tower sales maintained rapid positive growth from 2018 to 2019, both above 30%. Affected by the epidemic, sales declined in 2020. In 2021, as the epidemic is gradually controlled and surgeries become routine, sales will grow by 104%. In the future, it is expected to continue to benefit from the rebound in demand and continued growth.

(2) The market share has steadily increased, and the market has made breakthroughs in synergy.

There are many players in the domestic light bed tower market. International manufacturers include global operating room and ICU equipment leaders Draeger and McVie, and domestic manufacturers include Sundragon and BenQ Mitutoyo. , Medilan, etc., their share in the domestic market in 2018 was similar to that of the company. The company's light bed tower ranks first in China and seventh in the world, and its market share has steadily increased. The company is expected to further achieve breakthroughs by leveraging its full product line layout advantages and market synergy.

4.2. In vitro diagnostics: market share is steadily increasing and is expected to become a new star in performance growth

In vitro diagnostics, or IVD, refers to obtaining clinical diagnostic information by testing samples such as human body fluids, cells, and tissues in vitro, and then judging diseases or Diagnostic methods of body function. At present, about 80% of clinical diagnostic information comes from in vitro diagnosis, and IVD has become an indispensable medical method for disease prevention, diagnosis and treatment.

The global in vitro diagnostic market size was US$71.4 billion in 2019, maintaining a compound growth rate of 4.87% from 2014 to 2019. It is expected that with the growth of medical demand and technological advancement in the future, the market will further expand and maintain stable growth. The in vitro diagnostic business of

company can be divided into in vitro diagnostic reagents and in vitro diagnostic analyzers. The proportion of reagents is slightly higher than that of instruments, accounting for 54.32% in 2017. The company's in vitro diagnostic business covers blood cell testing, biochemical analysis and testing, chemiluminescence immunoassay, coagulation testing, urine testing and microbial testing, etc., basically covering all conventional testing items. From 2016 to 2021, the company's in vitro diagnostic business has an average annual compound growth rate of 24.7%, maintaining rapid growth and is expected to become the largest business segment driving the company's performance growth.

4.2.1. Blood cell diagnosis: Domestic leader, market share is expected to increase

(1) Segmented coverage needs, product performance is excellent

Blood cell analysis is a quantitative analysis of blood cells and other formed components in the blood by detecting blood samples. . The blood cell analyzer is its testing and analysis instrument and is widely used in clinical testing. The blood cell analyzers of

company include five-category blood cell analyzer, three-group blood cell analyzer, fully automatic cell morphology analyzer and Taihang blood analysis assembly line. The

three-group blood cell analyzer divides white blood cells into lymphocytes, monocytes, and granulocytes based on impedance and colorimetry; the five-partition blood cell analyzer divides white blood cells into lymphocytes, monocytes, and granulocytes ( Neutrophils, eosinophils, basophils), the medium and low five-classification analyzers are based on chemical staining and flow cytometry, and the high-end five-classification analyzers are based on specific fluorescence staining and scattering-fluorescence three-point analysis technology. Base. Low-end three-category products and high-end five-category products help cover market demand. On this basis, the company also launched a fully automatic cell morphology analyzer and Taihang blood analysis assembly line. The

fully automatic cell morphology analyzer opens up a new era of automated microscopy, which can accurately capture and classify pathological characteristics, help screen for blood diseases, automatically obtain instrument results, and intelligently read films. Among them, the company's BC-5390CRP series products can achieve five categories + CRP joint detection in one minute. CRP (C-reactive protein) is an acute phase response protein with a very low concentration (5 mg/L) in the serum of healthy people, but the concentration increases significantly during bacterial infection or tissue damage. Five-category + CRP joint testing has become the main trend in the upgrading of the blood analysis market. The

blood analysis pipeline is composed of an automatic blood smear preparation instrument and a fully automatic blood cell analyzer to realize automatic pipeline analysis and significantly improve inspection efficiency.

(2) Steady growth coupled with upgrading and upgrading, market share has steadily increased

China’s blood analysis market has grown from 2.74 billion in 2013 to 5.39 billion in 2019, with an average annual compound growth rate of 11.94%. The industry is expected to grow steadily. At the same time, the upgrading needs with five categories + CRP joint inspection as the main trend are superimposed.

4.2.2. Biochemical analysis and diagnosis: The market structure is fragmented, and high-end products continue to be developed

(1) The development of biochemical diagnosis is relatively mature, and foreign companies occupy the high-end market.

Biochemical diagnosis refers to the in vitro determination of inorganic elements through biochemical reactions, immunoturbidimetry, etc. , protein, blood sugar, blood lipids and other biochemical indicators are one of the basic diagnostic methods and the earliest and most mature IVD segment. Biochemical diagnosis developed early in China, accounting for more than 50% of the in vitro testing market in the early days. Later, as the market share of immunoassays, molecular diagnostics, and POCT continued to grow, the market share of biochemical diagnosis continued to decline.

Biochemical instruments have experienced technological progress from manual, semi-automatic to fully automatic biochemical analyzers. Currently, many domestic manufacturers are able to produce fully automatic biochemical analyzers. At present, domestic biochemical instruments are mainly concentrated in the low-end and low-speed market, while imported biochemical instruments still occupy the main high-end and high-speed market, with a localization rate of about 50%. Biochemical reagents have basically achieved import substitution, and the localization rate is about 70%.

(2) Focus on high-end products to break through competitive difficulties. The biochemical analyzers currently launched by

include fully automatic biochemical analyzers, modular biochemical detection systems and Tianhe biochemical immunoassay assembly lines. Among them, the SAL9000 product of Tianhe's biochemical immunoassay assembly line can provide "biochemical + immune" testing packages for 11 disease categories, including liver disease, kidney disease, ion and acid-base metabolism, cardiovascular disease, endocrine disease, tumor disease, etc. There are more than 140 testing items in total.

In China's biochemical analyzer market in 2017, international brands Hitachi and Beckman occupied 27% and 22% of the market share respectively. Excluding the two international manufacturers, players such as Roche, Siemens, Olympus, and Toshiba have similar market shares. The market is relatively dispersion. The company occupies 9%, making it the domestic brand with the highest market share. It is expected to break through the competition dilemma with its high-end products. (Source of the report: Future Think Tank)

4.2.3. Chemiluminescence immunodiagnosis: Mergers and acquisitions of upstream companies reduce costs and increase efficiency, and are expected to grow rapidly in the future

(1) The chemiluminescence immunodiagnosis market is large and has growth potential

Immunodiagnosis refers to the application of immunoassays Learn the theories, techniques and methods to diagnose various diseases and determine immune status. Immunodiagnostics is the largest field in in vitro testing, accounting for 38% of the total IVD market in 2019. Immunodiagnosis includes chemiluminescence, enzyme-linked immunoassay, radioimmunoassay, etc. Enzyme-linked immunoassay is low-cost and can be operated on a large scale, while chemiluminescence is sensitive, fast, stable, highly selective, reproducible, easy to operate, and has flexible and diverse methods. Due to its advantages such as high sensitivity and other technical properties, chemiluminescence has gradually become dominant. The proportion of chemiluminescence in China's immunodiagnostic market is increasing year by year, accounting for 85% by 2019. Chemiluminescence accounts for more than 90% of immunodiagnosis abroad, and China’s chemiluminescence market still has large room for growth.

(2) Mergers and acquisitions help self-research and produce core raw materials, and are expected to grow rapidly in the future.

The company has currently launched a number of fully automatic chemiluminescence immunoassay analyzers. At the same time, the company acquired Hytest Invest Oy and its subsidiaries in 2021. Founded in 1994, Haitide Biotechnology is the world's top professional in vitro diagnostic upstream raw material supplier. It has the innovation, original research and self-production capabilities of high-quality antigens and antibodies, and has advantages in cardiac markers, tumor markers, infectious diseases, inflammation, coagulation, etc. It has established a rich product portfolio and accumulated technology in the field. The ability to self-research and produce immune raw materials is an important guarantee for the clinical performance, quality and supply safety of reagents. The company's acquisition of Haitide Biotech has filled many gaps in the field of top raw materials for upstream in vitro diagnostics in China, enhanced the company's self-research and production capabilities in the field of core raw materials, and helped solve the "stuck neck" problem in the supply of upstream raw materials for in vitro diagnostics.

Compared with other in vitro testing sub-sectors such as biochemical diagnosis, the domestic production rate of the immunodiagnostic market is the lowest. In 2018, international manufacturers such as Roche, Abbott, Beckman, and Siemens accounted for more than 80% of the domestic chemiluminescence market. The company's newer industry, Antu, two domestic manufacturers, started late, but their revenue scale expanded rapidly, and their market share closely followed the two domestic manufacturers. In the future, it is expected to further break through core technologies, improve product lines, and expand market share.

4.3. Medical imaging: sales breakthrough, quickly occupying the high-end market

Medical imaging equipment refers to the application of various physical signals including visible light, X-rays, ultrasound, strong magnetic fields, etc. to the human body for the purpose of diagnosis or treatment guidance. , a technical device that records the signal intensity distribution fed back by the human body, forms an image, and enables doctors to interpret human body structure and disease information from it.

focuses on business, dominated by color ultrasound.The medical imaging equipment currently widely used in clinical applications of includes four categories: X-ray imaging system (XR), computed tomography (CT), magnetic resonance imaging system (MRI) and ultrasonic diagnostic system. Based on the application fields, nature of use, cost and technology of comprehensive equipment, the company has made some choices, focusing on ultrasonic diagnostic equipment and X-ray imaging systems (XR). Among them, color ultrasound is the company’s main force in the field of medical imaging, growing rapidly from 2016 to 2017. Affected by the decline in the number of routine physical examinations due to the epidemic, sales of desktop ultrasound have slowed down, and the growth rate of the medical imaging business segment has slowed down. It is expected to recover after the epidemic.

4.3.1. Ultrasound diagnostic equipment: The leader in the color ultrasound industry, focusing on high-end

(1) The ultrasound market has grown considerably, and the industry leader in color ultrasound sales

Ultrasound diagnostic equipment uses the physical characteristics of ultrasound and the differences in the acoustic properties of human organs and tissues to form waveforms, Medical equipment that displays the physiological conditions of diseases in the form of curves or images to help diagnose diseases. The markets in overseas developed countries started early, and the market tends to be saturated and growth is slowing down. However, China is an emerging incremental market. The aging population and increasing health awareness have brought about growth in demand. At the same time, innovative factors such as the expansion of ultrasound technology application scenarios and technological innovation have opened up new markets. Create new market space. China's ultrasound equipment market size was 9.92 billion yuan in 2020 and is expected to grow to 21.62 billion yuan in 2030, with a compound growth rate of 8.1%. The color ultrasound mainly operated by

company is a device that uses ultrasonic Doppler technology and ultrasonic echo principles to simultaneously collect blood flow movement, tissue movement information and imaging of human organs and tissues. Compared with ordinary B-ultrasound, color ultrasound adds pseudo color, which is more effective for Two-dimensional black and white images are processed in color to achieve better imaging effects. In 2013, the company acquired Zonare, a leading US company in ultrasonic diagnostic systems, and achieved a breakthrough in domestic high-end color ultrasound based on its advanced technology. At present, the company's color ultrasound has developed a series of products around whole-body imaging, women's health, clinical ultrasound, basic medical care and liver fiber equipment, achieving full coverage of the high, middle and low markets, and its market share has steadily increased, becoming the number one in both the desktop and portable markets in 2021 , desktop color supermarkets accounted for 26.91%, and portable color supermarkets accounted for 39%.

(2) Bottom line market advantage is significant, high-end breakthroughs expand share

Compared with 2018, the company’s market share in the domestic ultrasonic instrument market in public medical institutions was 19.4%, ranking second. In recent years, the company has benefited from domestic substitution and market penetration. The rate continues to increase, and the leading advantages of domestic brands are demonstrated. With a comprehensive product line, the company is based on the mid-to-low-end market. In 2018, the company's market share in community/township health centers among domestic public medical institutions at the municipal, county, and community/township hospitals was as high as 34%, reflecting the company's solidity. The foundation of the sinking market. With the implementation of hierarchical diagnosis and treatment policies, demand in the bottom-line market continues to be released, and the mid- to low-end market has significant advantages.

At the same time, the company continues to make breakthroughs into the high-end market. Based on Zonare's world-leading regional imaging technology ZONE-SonographyTM),

has launched high-end color ultrasound products such as Resona7, breaking the import monopoly in the field of high-end color ultrasound. At present, the company's latest Kunlun series of high-end color ultrasound has excellent advantages in technology platform, image quality, application fields, and ergonomic design, and has gradually entered the European and American high-end markets. As the company's first high-end product line, the Kunlun series is expected to further increase its volume in the international and domestic high-end markets, driving the company's continued breakthroughs in color ultrasound in the high-end market.

4.3.2. , clinical diagnosis of bone and joint, breast disease, biliary system and urinary system diseases.

In the global XR market, the Asia-Pacific region ranks first in market size, with compound annual growth rates of 5.2% and 4.9% from 2015 to 2020 and 2021-2030E respectively, which is slightly lower than the overall global level of 5.8% and 5.3%. The growth rate of China's XR market fluctuated greatly from 2015 to 2020, with a compound annual growth rate of 7.4%, higher than the global level.At present, my country's XR market has not yet been saturated. The market size in 2020 is approximately 12.38 billion yuan. It is expected that the market size will reach 20.60 billion yuan in 2030, with a compound annual growth rate of 5.2%.

XR equipment can be divided into general X-ray machines (GXR) and interventional X-ray machines (IXR) according to usage characteristics. GXR includes conventional DR, mobile DR, breast machine and gastrointestinal machine, all of which diagnose and examine diseases through X-ray photography; IXR It is mainly a C-arm X-ray machine, including large C-arm, medium C-arm and small C-arm. It is mainly used for monitoring X-ray during surgical operations. Radiography and photography. The products currently launched by

company cover the fields of conventional DR and mobile DR.

(2) Existing products have a good market share and are expected to achieve breakthroughs in high-end products.

Supported by national policies, domestic equipment has continued to increase its market share after nearly ten years of development, and has basically achieved import substitution in the field of DR and mobile DR equipment. Relying on its earlier layout and market penetration, the company achieved 5.3% and 9.4% shares in the conventional DR and mobile DR markets respectively in 2020. As competition from domestic manufacturers in the mid- to low-end market intensifies, the company continues to invest in scientific research, respond to market demand, and promote the development of XR equipment in the direction of mobility, dynamic multi-function and high-end, and is expected to achieve higher breakthroughs in the high-end market.

4.4. Seed business: layout the company’s new growth points in advance

4.4.1. Minimally invasive surgery: focusing on hard mirrors, domestic growth prospects are bright

Minimally invasive surgery refers to the use of special instruments, physical energy or Chemical agents are delivered into the human body to complete surgical operations such as inactivation, resection, repair or reconstruction of lesions, deformities, and wounds in the human body. It is a branch of medical science whose distinctive feature is that the trauma to the patient is significantly less than that of corresponding traditional surgery. Minimally invasive surgery is a major trend in the evolution of modern surgery. Currently, most general surgeries in departments such as general surgery, obstetrics and gynecology, urology, thoracic surgery, otolaryngology, and pediatrics can be minimally invasive through endoscopes. Surgery completed.

Endoscopic minimally invasive medical devices are divided into medical endoscopes, endoscopic surgical instruments and supporting facilities such as cameras and monitors. Medical endoscopes can be divided into laparoscopes, arthroscopes, otoscopes, nasopharyngoscopes, hysteroscopes, cystoscopes, gastroscopes, enteroscopes, etc. according to the application scenarios, among which they can pass through the natural orifice of the human body (esophagus, intestine, etc.) Endoscopes that can be bent at will are called flexible endoscopes (soft endoscopes). Correspondingly, an inflexible endoscope that allows the endoscope to enter the human body cavity or potential cavity by poking holes is called a rigid endoscope (rigid endoscope), including laparoscopy, arthroscopy, etc.

The company currently focuses on hard scopes and has launched a variety of hard scope systems including HyPixel U1, HyPixel™R1, HD3, and EC3, as well as the Reliance series of laparoscopic surgical instruments. Among them, the hard lens system restores true colors, clear images, and has excellent imaging performance. Relai series laparoscopic surgical instruments are made of imported high-performance materials, high-precision forceps design, and easy-to-use three-detachable structure, making them safe, easy to use, and durable. The company always serves clinical needs with excellent product performance. At present, the company's endoscopic minimally invasive medical device business is in its infancy, and its product categories are expected to be further enriched. Thanks to the general trend of minimally invasive surgery, this business is expected to become a new revenue growth point in the future. (Report source: Future Think Tank)

4.4.2. Animal medical treatment: Migrate technological advantages and lay out the pet medical market in advance

From 2015 to 2020, the scale of China’s pet market increased from 72.5 billion yuan to 298.8 billion yuan, with a compound growth rate of 32.74%. At the same time, it is expected to continue to grow at an annual growth rate higher than 12%. At the same time, the household pet keeping rate in China was 17% in 2019, significantly lower than the 67% in the United States, 62% in Australia, and 44% in the United Kingdom. The industry has large room for growth.

Ninety percent of pet owners keep pets for emotional reasons such as adding interest, relieving stress, and alleviating loneliness. As residents' living standards improve and they pay more and more attention to emotional consumption, the pet industry is expected to maintain rapid growth and continue to become standardized and mature.

has great potential in the pet medical market. The company has a forward-looking layout and established a dedicated animal medical subsidiary in 2020. Based on the high synergy of technology, it has migrated its human products and research and development advantages. Currently, it has established a network around three major product areas. A relatively complete animal medical line, providing corresponding solutions for four scenarios: pet hospitals, livestock farms, horse farms and rare animals. In the future, it is expected to further improve the product layout, expand application scenarios, and gradually increase the revenue contribution of this business.

4.4.3, AED: Policy implementation helps the industry expand, and technical advantages are expected to lead the industry

AED, an automated external defibrillator, is a portable medical device that can diagnose specific arrhythmias and deliver electric shock defibrillation in the best possible manner. Non-professionals can rescue cardiac arrest patients within the "golden four minutes" of rescue time, effectively preventing sudden death.

In 2019, the Chinese National Health Commission clearly stated in the "Healthy China Action (2019-2030)" document: "Improving the standards for first aid facilities and equipment in public places, including in schools, government agencies, enterprises and institutions, as well as airports, stations, and ports. Passenger terminals, large shopping malls, movie theaters and other crowded places are equipped with emergency medicines, equipment and facilities, and equipped with automated external defibrillators (AED)."

End In 2019, the number of AEDs per 100,000 people in mainland China was only 0.2, which is far lower than the international average of 100 units per 100,000 people. Various provinces and cities have introduced corresponding policies to further improve the configuration of AEDs in public places. The AED market Further expansion is expected.

company broke through multiple patent blocks of foreign companies and became the first company in China to independently develop AED products. It broke the monopoly of the original AED market by international giants such as ZOLL, Philips, and Promicon, and penetrated the domestic market with its cost-effective advantage. The rate continues to increase. The company's AED business is expected to benefit from further expansion of the industry and achieve rapid growth.

4.4.4. The orthopedic market has a high level of enthusiasm, and the business layout seeks growth.

Orthopedic consumables are one of the top five market segments in the medical device market. The global orthopedic consumables market has a market size of US$35 billion in 2020 and is expected to reach US$65 billion by 2030, with a compound growth rate of 6.25%. The market space is large and it maintains relatively stable growth. The Chinese orthopedic market is currently in a stage of rapid development, with the market growth rate remaining at around 15%, which is higher than that of the world, and the industry is highly prosperous.

Orthopedic implant consumables mainly include three major market segments: trauma, spine, and joints, with similar sizes. In 2019, they occupied 28.6%, 29%, and 27.9% of the overall market respectively. Overall, the three market segments show a competitive situation in which imported manufacturers occupy a larger share of the market, especially in the spine and joint categories where the technical threshold is relatively high. At present, thanks to the centralized procurement policy and domestic substitution of orthopedic consumables, the orthopedic implant consumables industry is expected to continue to increase industry concentration, and domestic leaders are expected to further expand their market share.

Currently, the company has a presence in four markets: trauma, spine, joints and biomaterials. In the trauma category, it has launched femoral intramedullary nails, combined external fixators, integrated external frames and other products, including wrist, We provide many sets of solutions for shoulders, knees, hips, etc. We have introduced thoracolumbar posterior fixation systems in the spine category, primary replacement systems, revision systems, etc. in the joint category, and artificial bone and other products in the biomaterial category. At present, the company's orthopedic consumables are still in the preliminary development stage, and are expected to further seize the market with their own product strength and domestic substitution, becoming an emerging growth point for the company's business.

5, investment analysis

5.1, key assumptions of the revenue model:

Benefiting from new medical infrastructure, active development of overseas markets, and increased penetration of high-end device products, we estimate that Mindray Medical’s operating income will CAGR 22.3% from 2022 to 2024, with net income attributable to the parent company during the same period Profit CAGR reached 22.9%.Viewed by business segment:

Life information and support: It is expected that the domestic income of the segment will continue to benefit from the increase in orders for ICU-related products driven by new medical infrastructure, while overseas income will benefit from the continuous penetration of high-end markets and the continuous development of demand for emerging markets. , segment revenue is expected to CAGR 17.1% from 2022 to 2024E, and gross profit margin is basically stable in the 66.0-66.5% area Time;

In vitro diagnostics: After completing the acquisition of Hytest, the company strengthened its self-research and production capabilities of upstream core raw materials for IVD, supported the research and development of high-end products, and gradually narrowed the technological gap with overseas leaders. Popular products such as BC-7500 The continued increase in CRP volume is expected to drive segment revenue growth. Segment revenue is expected to CAGR 25.2% from 2022 to 2024E, and gross profit margin is expected to remain at 25.2%. About 62%;

Medical imaging category: It is expected that color ultrasound business will continue to supplement high-end and ultra-high-end product lines. Segment revenue is expected to CAGR 20.5% in 2022-2024E, and gross profit margin will remain at around 66.3%.

’s four high-potential businesses: (1) Animal medical care (included in the three major business segments): The company’s business in this segment has significant competitive advantages in the country, and the segment revenue is expected to grow at a CAGR of 50% in 2022-2024E. (2) Minimally invasive surgery (included in the life information and support segment): Products such as rigid lenses benefit from technology and channel advantages, and segment revenue is expected to grow at a CAGR of 75% from 2022 to 2024E. (3) AED (including life information and support): The per capita ratio of domestic AED is still far behind that of developed countries. The company’s products rank first in the country, and the segment revenue is expected to have a CAGR of 50% in 2022-2024E. (4) Orthopedics (included in other main businesses): As the company’s intelligent production line is put into production, production costs are effectively reduced, and the segment revenue is expected to reach a CAGR of 100% in 2022-24E.

(This article is for reference only and does not represent any investment advice on our part. If you need to use relevant information, please refer to the original text of the report.)

Selected report source: [Future Think Tank]. Future Think Tank - Official website