YANGZHOU, China, Nov. 14,
2022 /PRNewswire/ -- Meihua International
Medical Technologies Co., Limited ("MHUA" or the "Company")
(NASDAQ: MHUA), a reputable manufacturer and provider of Class I,
II and III disposable medical devices with operating subsidiaries
in China, today reported its
unaudited financial results for the six months ended June 30, 2022.
First Half 2022 Unaudited Financial Highlights
- Total Revenues increased by 13% to approximately
$54.8 million for the six months
ended June 30, 2022, from
approximately $48.4 million in the
same period of fiscal year 2021.
- Gross profit increased by 14% to approximately
$20.9 million for the six months
ended June 30, 2022, from
approximately $18.3 million in the
same period of fiscal year 2021.
- Gross margin remained at 38% in the six months ended
June 30, 2022, as compared to the six
months ended June 30, 2021.
- Income from operations decreased by 24% to
approximately $8.7 million for the six months ended
June 30, 2022, from approximately
$11.5 million in the same period of
fiscal year 2021.
- Net income decreased by 28% to approximately
$6.6 million for the six months ended
June 30, 2022, from
approximately $9.1 million in the same period of fiscal
year 2021.
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For the six months
ended June 30,
|
|
|
|
2022
|
|
|
2021
|
|
|
%
Change
|
|
Total
revenues
|
|
$
|
54,832,847
|
|
|
$
|
48,360,993
|
|
|
|
13 %
|
|
Gross profit
|
|
$
|
20,891,732
|
|
|
$
|
18,300,645
|
|
|
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14 %
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Gross margin
|
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38 %
|
|
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38 %
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|
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|
-pp*
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Income from
operation
|
|
$
|
8,668,702
|
|
|
$
|
11,479,313
|
|
|
|
(24) %
|
|
Net income
|
|
$
|
6,554,887
|
|
|
$
|
9,092,467
|
|
|
|
(28) %
|
|
Net income per share –
Basic and Diluted
|
|
$
|
0.29
|
|
|
$
|
0.45
|
|
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|
(37) %
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
* Percentage
points
|
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|
|
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|
|
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|
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|
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|
|
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Mr. Yongjun Liu, Chairman of the
Company, commented: "We are continuing to improve our operational
efficiency and upgrade our product offerings while increasing our
market coverage to expand the Company's presence. I would like to
thank the entire MHUA team for their commitment to active sales and
product development in the first half of the year, our distributors
for their smooth cooperation, and our customers and investors for
their trust in us. Together we will work to continually improve our
products and product offerings to provide better care for our
products' end users. At the same time, our board of directors
together with the Company's management, are also actively
recruiting high-end overseas professionals to strengthen R&D of
new products and team management capabilities. Beginning with Q4 of
this year, Meihua will begin working with our partners to explore
the different application scenarios of medical devices by using
web3.0 and XR technology in the metaverse, and also, we're planning
to launch a high-end senior care project. We are aiming to expand
our products and services to the U.S. market by the end of 2023. We
are also aiming to further our market reach and extend our progress
in the near future."
Mr. Yulin Wang, CEO and interim
CFO of the Company, commented: "We are pleased to announce record
performance and stable operational cash flow for the first half of
2022 following the Company's successful IPO earlier this year. We
reported 13% and 14% growth, respectively, in revenues and gross
profit for the six months ended June 30,
2022, and our gross margin also maintained at 38%, similar
to that of the same period last year, demonstrating that our sales
and marketing efforts in the Company's focused markets have started
to bear fruit. In particular, our sales from Class I medical
devices increased by 25% from the same period last year. Despite
the multiple changes resulting from China's epidemic policy, which partially
impacted our product sales margins, we still managed to quickly
adapt to the stress test presented throughout the Yangtze Delta
Region Covid-19 pandemic that disrupted our supply chain and
increased raw material and logistics costs during the first half of
this year. Our team is confident that we can align our business
direction and strategic objectives to achieve long-term stable and
sustainable performance growth in the post-epidemic era."
First Half 2022
Unaudited Financial Results
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The following table
sets forth the breakdown of our revenue for the periods
presented:
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For the six months
ended June 30,
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|
|
|
|
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2022
|
|
|
2021
|
|
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Amount
|
|
|
%
|
|
Category
|
|
Amount
|
|
|
% of
total revenue
|
|
|
Amount
|
|
|
% of
total revenue
|
|
|
Increase
(Decrease)
|
|
|
Increase
(Decrease)
|
|
Class I
|
|
$
|
7,657,297
|
|
|
|
14
|
%
|
|
$
|
6,121,972
|
|
|
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13
|
%
|
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$
|
1,535,325
|
|
|
|
25
|
%
|
Class II
|
|
|
39,897,058
|
|
|
|
73
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%
|
|
|
35,416,113
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|
|
|
73
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%
|
|
|
4,480,945
|
|
|
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13
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%
|
Class III
|
|
|
1,584,816
|
|
|
|
3
|
%
|
|
|
1,704,431
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|
|
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4
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%
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|
(119,615)
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(7)
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%
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Others
|
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5,693,676
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|
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10
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%
|
|
|
5,118,477
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|
|
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11
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%
|
|
|
575,199
|
|
|
|
11
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%
|
Total
revenue
|
|
$
|
54,832,847
|
|
|
|
100
|
%
|
|
$
|
48,360,993
|
|
|
|
100
|
%
|
|
$
|
6,471,854
|
|
|
|
13
|
%
|
Revenues increased by approximately $6.5 million, or 13%, to approximately
$54.8 million for the six months
ended June 30, 2022, from
approximately $48.4 million in the
same period of fiscal year 2021, which primarily resulted from an
increase of approximately $1.5
million for revenues generated from Class I products and an
increase of approximately $4.5
million in revenues for Class II products. Our overall
increase in revenues was mainly due to the Company's business
expansion, increased research and development of new products, and
development of new customers.
Cost of revenues primarily included the cost of
materials, direct labor expenses, overhead, and other related
incidental expenses that are directly attributable to the Company's
principal operations. Cost of revenues increased by approximately
$3.9 million, or 13%,
to approximately $33.9 million
for the six months ended June 30,
2022, from approximately $30.1
million in the same period of fiscal year 2021. The increase
was mainly attributable to increased sales for the six months ended
June 30, 2022.
Gross profit increased by approximately $2.6 million, or 14%, to approximately
$20.9 million for the six months
ended June 30, 2022, from
approximately $18.3 million in the same period of fiscal
year 2021.The increase was primarily due to the Company's business
expansion and sales growth during the six months ended June 30, 2022.
Operating Expenses
|
|
|
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For the six months
ended June 30,
|
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|
|
|
|
|
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|
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2022
|
|
|
2021
|
|
|
Amount
|
|
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%
|
|
|
|
Amount
|
|
|
% of
revenue
|
|
|
Amount
|
|
|
% of
revenue
|
|
|
Increase
(Decrease)
|
|
|
Increase
(Decrease)
|
|
Selling
expenses
|
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$
|
3,311,649
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6
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%
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$
|
3,185,797
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7
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%
|
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$
|
125,852
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4
|
%
|
General and
administrative expenses
|
|
|
4,799,711
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9
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%
|
|
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2,219,725
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5
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%
|
|
|
2,579,986
|
|
|
|
116
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%
|
Research and
development expenses
|
|
|
1,642,204
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|
|
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3
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%
|
|
|
1,415,810
|
|
|
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3
|
%
|
|
|
226,394
|
|
|
|
16
|
%
|
Bad debt
expenses
|
|
|
2,469,466
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|
|
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5
|
%
|
|
|
—
|
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—
|
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|
|
2,469,466
|
|
|
|
100
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%
|
Total
|
|
$
|
12,223,030
|
|
|
|
22
|
%
|
|
$
|
6,821,332
|
|
|
|
14
|
%
|
|
$
|
5,401,698
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|
|
|
79
|
%
|
Operating expenses increased by
approximately $5.4 million, or 79%, to
approximately $12.2 million for the six months ended
June 30, 2022, from
approximately $6.8 million in the same period of fiscal
year 2021. This increase in operating expenses is detailed
below:
- Selling expenses increased by approximately $0.1
million, or 4%, to approximately $3.3 million for the six
months ended June 30, 2022, from
approximately $3.2 million in
the same period of 2021. The increase in selling expenses was
mainly due to increased salary expenses and shipping expenses as a
result of increased sales.
- General and administrative expenses increased by
approximately $2.6 million, or 116%,
to approximately $4.8 million
for the six months ended June 30,
2022, from approximately $2.2 million in the same period of fiscal
year 2021. The increase in general and administrative expenses was
primarily attributable to an increase of approximately $2.3 million in an investment consulting expense
paid to Tai He International Group Limited, a Hong Kong investment company, whom we engaged
as part of our IPO process to provide certain consulting and
investor relations services to the Company.
- Research and development expenses increased by
approximately $0.2 million, or 16%,
to approximately $1.6 million
for the six months ended June 30,
2022, from approximately $1.4
million in the same period of fiscal year 2021. The increase
was mainly due to the increase in consumption of materials related
to our research and development activities.
- Bad debt expenses increased 100% to
approximately $2.5 million for the six months ended
June 30, 2022 from nil in the same
period of 2021. The bad debt expense was related to certain
deposits made to Tai He International Group Limited.
Income from operations decreased by approximately
$2.8 million, or 24%, to
approximately $8.7 million for the
six months ended June 30, 2022, as
compared to approximately $11.5
million in the same period of fiscal year 2021.
Net income decreased by approximately $2.5 million, or 28%, to approximately
$6.6 million for the six months ended
June 30, 2022, as compared to
approximately $9.1 million in the
same period of fiscal year 2021, as a result of the factors
described above.
Cash was approximately $34.2 million as of
June 30, 2022, reflecting an increase
of approximately $26.0 million from
approximately $8.1 million as of
December 31, 2021. Our increased
cash during the six months ended June 30,
2022 was primarily the result of our closing on our initial
public offering in February of 2022.
Recent Developments
On February 19, 2022, the Company
announced the closing of its initial public offering (the
"Offering") of 3,940,000 ordinary shares ("Ordinary Shares") at a
public offering price of $10.00 per
ordinary share, including 340,000 Ordinary Shares issued pursuant
to the partial exercise of the underwriters' over-allotment option,
for aggregate gross proceeds of $39.4
million before deducting underwriting discounts and
commissions, and offering expenses. The Offering, which was
conducted on a firm commitment basis, closed on February 18, 2022 and the Company's Ordinary
Shares began trading on February 16,
2022 on The Nasdaq Global Market under the ticker symbol
"MHUA."
About Meihua International Medical Technologies Co.,
Ltd.
Meihua International Medical Technologies is a reputable
manufacturer and provider of Class I, II, and III disposable
medical devices with operating subsidiaries in China. The Company manufactures and sells
Class I disposable medical devices, such as eye drop bottles,
medicine bottles and anal bags, and Class II and III disposable
medical devices, such as identification tape, gynecological
examination kits, inspection kits, surgical kits, medical brushes,
medical dressing, masks, disposable infusion pumps, electronic
pumps and puncture kits, which products are sold under its own
brands and also sourced and distributed from other manufacturers.
The Company has received international "CE" certification and ISO
13485 system certification and has also registered with the FDA
(registration number: 3006554788) for more than 20 products. The
Company has served hospitals, pharmacies, medical institutions and
medical equipment companies for over 30 years, providing more than
800 types of products for domestic sales, as well as 120 products
which are exported to more than 30 countries internationally across
Europe, North America, South
America, Asia, Africa and Oceania. For more information,
please visit www.meihuamed.com.
Forward-Looking Statements
This press release contains forward-looking statements as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. When the Company uses words such as
"may," "will," "intend," "should," "believe," "expect,"
"anticipate," "project," "estimate" or similar expressions that do
not relate solely to historical matters, it is making
forward-looking statements. Forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties that may cause the actual results to differ
materially from the Company's expectations discussed in the
forward-looking statements. These statements are subject to
uncertainties and risks including, but not limited to, the
following: the Company's goals and strategies; the Company's future
business development and plans of future business development;
financial condition and results of operations; product and service
demand and acceptance; reputation and brand; the impact of
competition and pricing; changes in technology; government
regulations; fluctuations in general economic and business
conditions in China and
assumptions underlying or related to any of the foregoing and other
risks contained in reports filed by the Company with the U.S.
Securities and Exchange Commission ("SEC"). For these reasons,
among others, investors are cautioned not to place undue reliance
upon any forward-looking statements in this press release.
Additional factors are discussed in the Company's filings with the
SEC, which are available for review at www.sec.gov. The Company
undertakes no obligation to publicly revise these forward-looking
statements to reflect events or circumstances that arise after the
date hereof.
For more information, please contact:
Investor Relations
Janice Wang
|
Wealth Financial
Services LLC
|
Phone:
|
+86
13811768599
|
|
+1 628 283
9214
|
Email:
|
services@wealthfsllc.com
|
MEIHUA INTERNATIONAL
MEDICAL TECHNOLOGIES CO., LTD.
|
CONSOLIDATED BALANCE
SHEETS
|
As of June 30, 2022
and December 31, 2021
|
(US$, except share
data and per share data, or otherwise noted)
|
|
|
|
June 30,
2022
|
|
|
December 31,
2021
|
|
|
|
(Unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash
|
|
$
|
34,165,528
|
|
|
$
|
8,149,276
|
|
Restricted
cash
|
|
|
500,000
|
|
|
|
-
|
|
Bank acceptance
receivables
|
|
|
27,850,584
|
|
|
|
19,379,845
|
|
Accounts
receivable
|
|
|
60,481,702
|
|
|
|
67,101,297
|
|
Inventories
|
|
|
1,197,543
|
|
|
|
1,251,393
|
|
Other current
assets
|
|
|
2,763,742
|
|
|
|
1,394,539
|
|
Due from related
parties
|
|
|
32,427
|
|
|
|
-
|
|
Total current
assets
|
|
|
126,991,526
|
|
|
|
97,276,350
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
7,307,393
|
|
|
|
7,477,744
|
|
Intangible assets,
net
|
|
|
521,711
|
|
|
|
562,001
|
|
Investment
|
|
|
895,776
|
|
|
|
941,531
|
|
Other noncurrent
assets
|
|
|
55,356
|
|
|
|
|
|
Deposits
|
|
|
29,112,733
|
|
|
|
30,599,755
|
|
Deferred tax
assets
|
|
|
365,775
|
|
|
|
-
|
|
Total
assets
|
|
$
|
165,250,270
|
|
|
$
|
136,857,381
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Short-term bank
borrowings
|
|
$
|
5,523,955
|
|
|
$
|
5,178,420
|
|
Accounts
payable
|
|
|
15,268,473
|
|
|
|
20,981,041
|
|
Taxes
payable
|
|
|
1,704,843
|
|
|
|
2,082,252
|
|
Accrued expenses and
other current liabilities
|
|
|
731,437
|
|
|
|
847,066
|
|
Deferred tax
liability
|
|
|
80,838
|
|
|
|
-
|
|
Total current
liabilities
|
|
|
23,309,546
|
|
|
|
29,088,779
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
23,309,546
|
|
|
|
29,088,779
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
Ordinary share, $0.0005
par value, 80,000,000 shares authorized, 23,940,000 and
20,000,000 shares issued and outstanding as of June
30, 2022 and December 31,
2021
|
|
|
11,970
|
|
|
|
10,000
|
|
Additional paid-in
capital
|
|
|
43,464,842
|
|
|
|
9,716,484
|
|
Statutory surplus
reserves
|
|
|
15,178,467
|
|
|
|
15,178,467
|
|
Retained
earnings
|
|
|
84,129,550
|
|
|
|
77,574,663
|
|
Accumulated other
comprehensive income
|
|
|
(844,105)
|
|
|
|
5,288,988
|
|
Total shareholders'
equity
|
|
|
141,940,724
|
|
|
|
107,768,602
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
$
|
165,250,270
|
|
|
$
|
136,857,381
|
|
MEIHUA INTERNATIONAL
MEDICAL TECHNOLOGIES CO., LTD.
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME
|
|
For the six months
ended June 30, 2022 and 2021
|
|
(Unaudited)
|
|
(US$, except share
data and per share data, or otherwise noted)
|
|
|
|
|
|
For the six
months
ended
June 30,
|
|
|
|
2022
|
|
|
2021
|
|
Revenues
|
|
|
|
|
|
|
Third party
sales
|
|
$
|
54,803,181
|
|
|
$
|
47,853,541
|
|
Related party
sales
|
|
|
29,666
|
|
|
|
507,452
|
|
Total
revenues
|
|
|
54,832,847
|
|
|
|
48,360,993
|
|
Cost of
revenues
|
|
|
33,941,115
|
|
|
|
30,060,348
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
20,891,732
|
|
|
|
18,300,645
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Selling
|
|
|
3,311,649
|
|
|
|
3,185,797
|
|
General and
administrative
|
|
|
4,799,711
|
|
|
|
2,219,725
|
|
Research and
development
|
|
|
1,642,204
|
|
|
|
1,415,810
|
|
Bad debt
expenses
|
|
|
2,469,466
|
|
|
|
-
|
|
Total operating
expenses
|
|
|
12,223,030
|
|
|
|
6,821,332
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
8,668,702
|
|
|
|
11,479,313
|
|
|
|
|
|
|
|
|
|
|
Other (income)
expense:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
98,805
|
|
|
|
87,443
|
|
Interest
income
|
|
|
(19,725)
|
|
|
|
(12,073)
|
|
Currency exchange
(gain) loss
|
|
|
(449,217)
|
|
|
|
(70,961)
|
|
Other expense (income),
net
|
|
|
50,180
|
|
|
|
31,108
|
|
Total other (income)
expenses
|
|
|
(319,957)
|
|
|
|
35,517
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax provision
|
|
|
8,988,659
|
|
|
|
11,443,796
|
|
Income taxes
expense
|
|
|
2,433,772
|
|
|
|
2,351,329
|
|
Net
income
|
|
$
|
6,554,887
|
|
|
$
|
9,092,467
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment – gain/(loss)
|
|
|
(6,133,093)
|
|
|
|
835,543
|
|
Comprehensive
income
|
|
$
|
421,794
|
|
|
$
|
9,928,010
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares – basic and diluted
|
|
|
22,873,370
|
|
|
|
20,000,000
|
|
|
|
|
|
|
|
|
|
|
Basic & diluted
net income per ordinary share
|
|
$
|
0.29
|
|
|
$
|
0.45
|
|
View original
content:https://www.prnewswire.com/news-releases/meihua-international-medical-technologies-co-limited-reports-unaudited-2022-first-half-financial-results-301674347.html
SOURCE Meihua International Medical Technologies Co., Ltd.