Net profit surges 2039%! Amazon spends 20 billion on investment and financial management

Affected by the epidemic, the sales of global epidemic prevention products have increased rapidly. In such a market environment, many cross-border medical companies have ushered in rapid development. Especially Jiuan Medical, which has continued to receive orders throughout the year, and has received hundreds of millions of orders.

iHealth’s performance has skyrocketed, with net profit likely to reach 17.5 billion in 2022!

Recently, iHealth released its 2022 performance forecast report.

The report shows that from January 1, 2022 to December 31, 2022, iHealth's net profit attributable to shareholders of listed companies is expected to be 16.5-17.5 billion yuan, an increase of 1715.90%-1825.95% compared with 908 million yuan in the same period of 2021.

The net profit after deducting non-recurring gains and losses was 16.6-17.6 billion yuan, an increase of 1918.30%-2039.89% compared with 822 million yuan in the same period of 2021.

Basic earnings per share increased from RMB 1.99 per share in the same period of 2021 to RMB 36.17-38.36 per share.

In the first three quarters of 2022, iHealth achieved revenue of 1.323 billion yuan, a year-on-year increase of 497.31%; net profit attributable to shareholders of the parent company was 807 million yuan, a year-on-year increase of 17,452.26%; net profit attributable to shareholders of the parent company excluding non-recurring items was 946 million yuan, a year-on-year increase of 4,831.05%.

Overall, iHealth 's performance soared in 2022, and its stock price rose by about 20 times.

The main reason for the surge in iHealth's performance is the substantial increase in sales of COVID-19 antigen test kits. As the global epidemic situation has repeatedly occurred, the sales of epidemic prevention products have remained high, especially in the United States, where home testing is popular. The demand for COVID-19 antigen test kits has increased significantly. iHealth once revealed in its semi-annual report that iHealth's COVID-19 test kits contributed 99.08% of the company's revenue in the first half of the year.

Tianjin Jiuan Medical Electronics Co., Ltd. (hereinafter referred to as Jiuan Medical) was established in 1995 and was listed on the Shenzhen SME Board in 2010. In the same year, it created its own innovative brand "iHealth" during its transformation to mobile Internet.

The company mainly focuses on the research and development, production and sales of medical products such as thermometers and sphygmomanometers. Its main products include electronic medical equipment such as electronic sphygmomanometers, blood glucose meters, forehead thermometers, blood oximeters, and IVD in vitro diagnostic products.

At the beginning of the outbreak in 2020, Jiuan Medical began to provide medical products such as forehead thermometers and blood oximeters to overseas markets. The related products were also enthusiastically sought after by consumers on the Amazon platform and have long dominated Amazon's BSR list.

In the middle and late stages of the epidemic, iHealth Medical combined the overseas epidemic situation and promoted its iHealth test kit products. Its iHealth test kit products have obtained the US FDA EUA authorization. Since then, iHealth Medical has successively won large orders from the governments of many states such as New York and Massachusetts. In addition, the iHealth COVID-19 antigen test kit has been distributed free of charge to tens of millions of American families through the US government's distribution plan.

According to statistics, since 2022, the total transaction amount between iHealth and the US DLA and US HHS has reached US$1.966 billion (including freight), and the contract amount that has been fulfilled is US$1.775 billion, equivalent to more than RMB 10 billion, which has driven the company's performance growth by leaps and bounds.

However, in the post-epidemic era, iHealth, like many companies that performed well during the epidemic, is facing the challenge of market transformation.

Starting from September 2, 2022, the United States will temporarily stop providing free COVID-19 test kits. The main reason for the suspension is that Congress currently does not have sufficient funds to replenish the inventory of test kits. This change in the US market may mean that the US government may no longer pay for COVID-19 antigen test kits, and it will become very difficult for iHealth to obtain government orders.

In the report, iHealth also pointed out that due to factors such as the unpredictable development of the epidemic, the advancement of the vaccination program, changes in market demand, and changes in the market competition environment, there is still uncertainty as to whether future performance can continue to maintain rapid growth.

In addition, on January 30, 2023, US President Biden issued a statement to Congress stating that the national emergency and public health emergency measures (PHE) regarding the new coronavirus epidemic will officially end on May 11.

It is understood that the U.S. national emergency and public health emergency (PHE) regarding the new crown were enacted by the administration of then-President Trump in 2020. After Biden took office, he extended these measures many times, and now, these emergency measures to deal with the epidemic are about to end.

The U.S. government's Office of Management and Budget said in a statement that after the epidemic emergency ends on May 11, there will be no restrictions on personal behavior, there will no longer be mandatory requirements to wear masks or get vaccinated, there will no longer be restrictions on schools and business activities, and there will no longer be a need to use any drugs or epidemic tests to respond to new cases.

During the PHE trial in the United States , traditional Medicare and Medicare Advantage beneficiaries can receive free COVID-19 testing and treatment at home without paying any additional fees. However, after the PHE ends, free COVID-19 testing and treatment will also end.

The various measures taken by the US government to adjust the epidemic situation will inevitably have a certain impact on Jiuan Medical's business. Jiuan Medical must enrich its product matrix and increase its market share to enhance its ability to resist various uncertain risks.

iHealth invests 20 billion in financial management!

Many cross-border e-commerce sellers with sufficient cash flow will use idle funds for investment and financial management, and iHealth is no exception.

On January 31, 2023, iHealth issued an announcement stating that the company and its subsidiaries intend to use a maximum amount of no more than (including) RMB 17 billion or its equivalent in foreign currency of its own funds for entrusted asset management, and intend to use a maximum amount of no more than (including) RMB 3 billion or its equivalent in foreign currency of its own funds for securities investment.

iHealth stated that the funds used for this entrusted wealth management and securities investment are the company's own funds, which do not involve raised funds and bank credit funds, and the use of the funds will not cause financial pressure on the company, nor will it affect the company's normal operations and investments.

It is understood that this is not the first time that iHealth has engaged in entrusted financial management and securities investment.

iHealth’s first financial management announcement was in June 2014, when iHealth’s board of directors agreed that the company and its subsidiaries would use no more than 220 million yuan to purchase low-risk principal-guaranteed financial products and money market funds.

From April to September 2022, iHealth issued three large-scale wealth management announcements, and the total maximum amount of entrusted wealth management used by the company and its subsidiaries increased from 1.4 billion yuan to 5.9 billion yuan.

Now, iHealth has increased its financial management quota to 20 billion yuan, which is really generous!

In addition, iHealth announced in January this year that the company currently has good cash reserves and financial management can preserve and increase the value of the company's cash assets, which is very beneficial to the company's continued healthy development.

In the cross-border e-commerce industry, many sellers use idle funds for financial management. Amazon's big seller Gemtek made tens of millions of dollars a year through financial management, and Anker Innovations spent 1.5 billion to buy a house, which made many sellers envious. Many sellers in the industry use different methods to increase asset value, which will also have a very positive impact on the company's future development.

Medical sales

Investment and Financial Management