20,000 units sold in a single day, the seller's products have long dominated the Amazon BSR list

With the success of the COVID-19 antigen test kit, Jiuan Medical has been the hottest product for a long time. With the first-mover advantage in the US market, it has received orders from multiple channels such as the government, commercial customers, and Amazon's e-commerce platform, and has also made huge profits.

With a net profit of 15.2 billion yuan in the first half of the year, Jiuan Medical has made a fortune

Recently, iHealth released its 2022 semi-annual report. The report data showed that its revenue during the reporting period was 23.267 billion yuan, an increase of 3989.07% compared with the same period last year; its net profit attributable to the company was 15.244 billion yuan, an increase of 27728.49% compared with the same period last year.

Looking at the financial reports of 112 A-share medical device companies in the first half of 2022, the total revenue was 166.6 billion yuan and the net profit was 54.3 billion yuan. It can be seen that the profit of Jiuan Medical alone accounts for 28% of the total profit of the entire medical device sector , which is enough to show the profitability of Jiuan Medical.

In its report, iHealth also pointed out that an important reason for its performance increase was the substantial increase in sales of its COVID-19 antigen detection kits, with a gross profit margin of 81.66%. It is reported that its test kits are one of iHealth's series of products, which generated revenue of more than 25 billion yuan in the first half of the year, accounting for 99.08% of its revenue.

On the second day after the results were announced, its stock price continued to rise, with the highest increase exceeding 9%. In fact, since Jiuan Medical received large orders, its stock price has been rising, from less than 6 yuan in November 2021 to nearly 100 yuan in April this year, but it has fallen back recently.

After comparing its first half performance, the editor found that although Jiuan Medical's performance grew rapidly in the first half of the year, its revenue and profit growth were mainly in January-March this year. Its operating income in the first quarter of this year was 21.737 billion yuan, and its net profit attributable to the listed company was 14.312 billion yuan, an increase of 6646.79% and 37527.35% respectively compared with the same period last year.

However, in the second quarter of this year, iHealth's operating income was only 1.53 billion yuan, and its net profit attributable to shareholders of listed companies was 930 million yuan. It can be seen that 90% of its performance in the first half of the year came from the performance growth in the first quarter, and its performance in the second quarter also slowed down significantly.

In addition, the ODM/OEM products that make up iHealth's revenue , such as traditional hardware products, mobile medical communication equipment sales and services, and new retail businesses, have all experienced declines to varying degrees.

As a company that has been deeply engaged in the medical device field for more than 20 years, iHealth has launched a number of home medical and health products covering blood pressure, blood sugar, body temperature, blood oxygen, etc. In addition to B-end customers such as the US government and commercial customers , its product orders are also sold through C-end channels such as Amazon and the official website of its US subsidiary .

On Amazon , the forehead thermometer product of iHealth, a brand under Jiuan Medical, once sold 20,000 units in a single day . "The achievements of iHealth test kits are another successful practice of the company's core strategy of blockbuster products after the forehead thermometer," Jiuan Medical said in its semi-annual report.

It is reported that the brand's test kits have long dominated the Amazon BSR list, and have accumulated more than 170,000 ratings. At the same time, as the iHealth brand's influence in the United States has increased significantly, its IoT blood pressure monitors and other products are also selling well on the Amazon e-commerce platform in the United States.

The United States suspends the distribution of test kits, and Jiuan Medical still has development potential

Jiuan Medical's test kit products have always been the company's flagship products. They have great sales in various markets, especially the United States, and are deeply trusted by consumers. However, a recent announcement on the U.S. website for free application of new crown test kits has attracted the attention of investors.

The message said that the United States temporarily stopped providing free COVID-19 test kits from September 2 this year . The reason for the suspension was explained as " the country's Congress did not provide additional funds to replenish the inventory of test kits ."

As soon as this news came out, many investors were a little worried about the future sales of Jiuan Medical in the US market: whether it would have an impact. Jiuan Medical also responded to this on the investor interaction platform.

Jiuan Medical said that its company has been closely following the changes in the epidemic and epidemic prevention policies in the United States, and has also noticed the news that the country has stopped issuing test kits. But in terms of the reason, it is because the government needs to keep a certain amount of inventory to cope with the recurrence of the epidemic in autumn and winter, which has led to Congress not approving the funding budget. In addition, as of now, the epidemic in the country has not been effectively controlled, and stopping the free distribution of test kits will bring about commercial changes. In the short term, more commercial demand will be generated, and the company's test kit products will have more business opportunities; in the long run, changes in the epidemic in the United States are the important factors affecting the sales of test kits.

At the beginning of this year, the number of cases in the United States continued to increase, which had a significant impact on local medical care and people's lives. The New York Times previously reported that in the case of the emergence of highly contagious strains, it was difficult for local people to be tested for the new coronavirus , and the supply of test kits was not timely.

Under this circumstance, the government announced that it would purchase 1 billion test kits in batches and distribute them for free in two installments. It is understood that the amount of money used for the purchase is as high as billions of US dollars. Many people started to order on the platform early. In order to meet the delivery needs, the country's relevant logistics companies have also dispatched thousands of people.

In addition to the sales of test kit products, news about iHealth's factory construction in the United States has also attracted attention from the industry.

According to public information (recent research activity information disclosed by Jiuan Medical), its US subsidiary will use automated equipment to produce internal and external packaging of products after building a factory in the United States, thereby reducing dependence on manual labor and improving supply efficiency in the local market. It is worth noting that Jiuan Medical has currently completed the site selection for building a factory in the United States and is currently installing and debugging equipment. The operation time may be later this month.

If the construction of the factory in the United States goes smoothly, it will have a more positive impact on the future development of Jiuan Medical. Jiuan Medical can be said to have already occupied the product advantage in the US market. If it is coupled with the support of the local factory, it can be said to be icing on the cake. Not only will the supply efficiency be accelerated, but its local market reputation will also be improved simultaneously.

In recent years, with the increase in overseas brands in the medical industry, the development situation has become increasingly favorable. For Jiuan Medical, the market provides more and more business opportunities. However, with the industry dividend, the number of competitors naturally increases. It is crucial for Jiuan Medical to develop more advantageous products, increase market share, and increase the ability to resist various uncertain risks.

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Forehead thermometer

iHealth