Why is the high gross profit margin?

Since the new crown testing kit was listed and selling in the United States last year, Jiu'an Medical (SZ002432, a stock price of 59.47 yuan, and a market value of 28.632 billion yuan) has been the focus of the market. According to the annual report and the first quarter report, the company achieved net profit of 909 million yuan and 14.312 billion yuan in 2021 and the first quarter of this year, with a year -on -year growth rate of 274.96%and 37527.35%.

The high net profit growth rate has also become the focus of inquiry of the exchange. On May 12, Jiu'an Medical received an inquiry letter from the annual report and was asked about 14 aspects.

On June 21, Jiu'an Medical responded to the inquiry letter. Among them, for the reasons for the high level of gross profit margin and business rationality of the company's kit, Jiu'an Medical attributed it to the North American market's access premium and the company's iHealth brand premium advantage.

Jiu'an Medical said that the future development of the United States has strong uncertainty and unpredictable. Whether the company's future performance level and profitability can continue to maintain a certain uncertainty.

Reasons for high gross interest rates for the product: market access premium and brand premium

In the response to the Shenzhen Stock Exchange's inquiry letter, although because of business secrets, Jiu'an Medical is exempted from disclosure to disclose the proportion of the product income and gross profit margin of various sales channel kits, but the company said that the company's kit products are sold through different channels to sell The trend of gross profit margin is consistent.

Jiu'an Medical said that from the perspective of the product revenue of various sales channel kits, in 2021, the proportion of operating income channel sources from high to low is government orders, Amazon and American subsidiaries, and commercial customers; 2022 No. 2022 In the first quarter, the source of operating income channels accounted for government orders, commercial customers, Amazon and American subsidiaries official website from high to low; from the perspective of gross profit margins, the gross profit margins of Amazon and American subsidiaries were slightly higher. Customers' gross profit margins are close.

Due to the proportion of sales and gross profit margin of the iHealth kit, there is a significant difference in operating costs in 2021 and the first quarter of 2022 and the year -on -year changes in operating income.

Specifically, Jiu'an Medical's 2021 operating income and operating costs have a year-on-year change rate of 19.36%and -0.22%, respectively, and the gross profit margin rose 7.16 percent 6646.79%and 1910.40%, the gross profit margin rose 43.35 percentage points year -on -year.

In order to illustrate the reason for the major differences, Jiu'an Medical's data after the company's first quarter of 2022 and the data after the sales kit product began to sell kit in 2021, and the data after the iHealth kit product was removed in 2021 Compared.

In the first quarter of 2022, the data comparison with the data after the sales kit product began to sell at 2021

Picture source: company announcement

The results show that the company's first quarter and fourth quarter of 2021 basically matched the changes in operating costs and changes in operating income. In the first quarter of 2022, due to the significant increase in output, the amount of unit product fixed costs decreased, and the cost of product units decreased. Therefore Rising slightly.

Jiu'an Medical's operating costs that do not include the iHealth kit in 2021 are consistent with the changes in operating income from 2020. The inconsistent changes are mainly affected by the epidemic in 2020. The annual gross profit margin is close to the average gross profit margin from 2018 to 2020.

As for the reasons and business rationality of the high gross profit margin level of the kit, Jiu'an Medical explained that Jiu'an Medical is the first to make the US FDA (US Food and Drug Administration) for emergency use authorization to obtain the US FA company. The number of Chinese competitors in the North American market is less than that of the European market, so the company can enjoy a certain admission premium.

In addition, the company has the advantage of the IHEALTH brand premium, which has formed a complete value chain from manufacturing to independent brand sales, rather than a single dependence on manufacturing export sales to the brand to earn manufacturing profits or only earn brand premiums.

Two disclosure of CT's critical value is large: or from two experimental differences

The inquiry letter also mentioned that the Jiu'an Medical Annual Report shows that in similar antigen testing kits (the fast antigen testing kit of 3 mainstream brands, including Jiu'an Medical Kit), only the company's kit can completely distinguish CT CT All positive samples with a value of less than 27.5 have the best performance. However, the temporary announcement and related attention letter disclosed by Jiu'an Medical's pre -disclosure show that in the experiment, the positive detection rate of the company's kit can be detected when the CT value ≤21.59 can be detected at 60%when the CT value is 22.86. When the value is ≥23.87, it cannot be detected at all.

In response, Jiu'an Medical replied that the CT value cited in the annual report from a number of articles jointly published by many researchers in the United States, "3 Expressing antigen detection kits for the test performance of Omikon mutant virus", in related experiments The sample time of Ke Rong was from November 30, 2021 to December 27, 2021, and the article was published on February 17, 2022.

The report involved in the company's preliminary announcement refers to the test performance report of the RADX project of the National Institute of Health on the IHEALTH kit for the test performance of the IHEALTH kit for the Omikon mutant virus. The experiment was conducted on December 26, 2021, and the report was issued on January 4, 2022. Jiu'an Medical said that the two experimental research methods above are a multi -active virus samples for different CT values. The IHEALTH kit is used for detection to detect whether the kit can detect the positive experimental results. However, due to the different experimental subjects, sampling time, and experimental samples, the test results may be different. The CT critical value data disclosed in the company's annual report and the preliminary temporary reports are directly derived from the experimental results. At present, no relevant research has found the reasons that affect the difference in the detection results of the new crown antigen kit. Therefore, the company's disclosure content does not have false records or misleading statements. In the annual report, the expression "can fully distinguish all the positive samples with CT value below 27.5, the best performance" is accurate.

Regarding the sustainability of the company's business profitability, Jiu'an Medical said that in the future, the company will pay close attention to the development of American epidemic and virus variations and vaccination. The development of the future epidemic in the United States has strong uncertainty and unpredictability. The above situation may greatly affect the needs of the product products.

In addition, the sales of the company's kit products are currently mainly for retail customers and commercial customers. Jiu'an Medical's order in hand is exempted from disclosure of business secrets. If it meets the criteria of major contract disclosure, the company will timely fulfill the obligation of information disclosure. The US company has not learned that the company's iHealth kit FDA urgent use authorization may expire.

In the response, Jiu'an Medical also listed five risks that need to be prompted, which are the risks of uncertainty in the development of U.S. epidemic, risks of market competitive environment, talent risks, management risks, and exchange rate fluctuations.

Daily Economic News

- END -