EDAN(300206)2022-12-03 10:18Company Overview - Shenzhen Libang Precision Instrument Co., Ltd. operates in the biomedical industry, with a focus on ultrasound and in vitro diagnostics [2] - The company relocated to a new facility in Pingshan, Shenzhen, covering approximately 40,000 square meters, to enhance operational efficiency and employee stability [2] Financial Performance - In Q1 2018, the company reported total revenue of CNY 269.75 million, a year-on-year increase of 15.60% [3] - Net profit attributable to shareholders was CNY 36.82 million, up 43.94% year-on-year, driven by market opportunities and increased operational efficiency [3] R&D Investment - R&D expenditure for 2018 was CNY 178 million, representing 17.92% of total revenue, with a 0.66% increase from the previous year [3] - The company is focusing on ultrasound and in vitro diagnostics, with a dedicated R&D center in Silicon Valley [3] Sales System Adjustments - The domestic sales system underwent significant reforms in 2018, integrating internal and external sales teams to improve overall efficiency [4] - The sales team consists of over 600 members, with approximately 100 in external sales and 400-500 in internal sales [4] Product Development and Market Strategy - The company aims to expand its POCT (Point of Care Testing) platforms, particularly in obstetrics and other critical care areas [4] - In 2018, the company sold around 3.5 million blood gas test cards, with a target of 5 million for the current year [4] International Market Performance - In 2018, overseas revenue accounted for 57.33%, with North America contributing less than 10% [4] - The European market is expected to maintain steady growth, contributing about one-third of total foreign sales [4] Profitability and Cost Management - The company aims to maintain a profit growth rate in 2019 that exceeds the previous year's performance, with a focus on cost control and budget management [5] - The overall gross margin in 2018 was 54.60%, lower than competitors due to scale and product line maturity [6] Government Subsidies - The company received significant government subsidies in 2018, which are expected to decrease in 2019 but will still support R&D expenses [5] Competitive Landscape - The company faces competition in the ultrasound market, where it aims to enhance its brand influence and product offerings to gain market share [5] - The impact of the US-China trade war on pricing and margins is being managed through shared cost burdens with distributors [5]