One order brought in 8.1 billion! The dark horse of the year is popular on Amazon

For most sellers, getting rich overnight is a coincidence, and it requires an opportunity. But when the incident suddenly broke out, the probability of this coincidence was greatly increased. Amazon's best-selling Jiuan Medical became popular during the epidemic. Its related products often dominated the Amazon BestSellers list, and recently signed an order of 8.1 billion yuan.

With 8.1 billion orders, iHealth is popular on Amazon

Recently, Tianjin Jiuan Medical Electronics Co., Ltd. (hereinafter referred to as Jiuan Medical ) issued an announcement stating that its subsidiary iHealth Labs.Inc and the US ACC signed a purchase contract on January 13, 2022, US time. The contract content shows that Jiuan Medical sells iHealth test kit products to the US ACC (US Army Contract Management Command), with a total contract price and tax of US$1.275 billion (including freight), equivalent to approximately RMB 8.1 billion.

In fact, Jiuan Medical had already signed a 2 billion yuan contract earlier, and now it has won another large order, which is undoubtedly double happiness. It is understood that the revenue generated by this order has exceeded 50% of Jiuan Medical's audited main business income in 2020 (RMB 1.004 billion).

Not only Jiuan Medical, but also the revenue of epidemic prevention materials of Damei Star Technology from January to June 2021 should not be underestimated. Its operating income was 4.45 billion yuan and its net profit was 728 million yuan. Among them, the main business income of epidemic prevention materials increased by more than 50% year-on-year, exceeding the target set at the beginning of the year.

In addition, Oriental Biopharmaceuticals recently released a forecast stating that benefiting from the COVID-19 pandemic, the company's product sales in the European market continued to rise, and its net profit in 2021 is expected to be between 4.72 billion yuan and 5.12 billion yuan, an increase of 181.45% to 205.31% compared with the same period last year.

The sales of many medical products have been very impressive, which is inseparable from the current epidemic in the United States. In particular, the new crown test kits are in short supply in the United States. The US government has also announced the purchase of test kits many times, saying that it will provide free new crown test kits to the American people. At present, the official public data is 1 billion, and there is no upper limit, which indicates the various possibilities of the new crown test kit market in the future.

Jiuan Medical mainly develops, produces and sells medical products such as thermometers and blood pressure monitors, and these products often dominate the Amazon Best Sellers list. In addition, Jiuan Medical has established multiple overseas subsidiaries under its own brand iHealth, which are distributed in the United States, Europe and other places. Among them, the products of iHealth in the United States are mainly sold on its own platform and Amazon in the United States.

In terms of revenue, Jiuan Medical's full-year operating income in 2020 was 2.008 billion yuan, and its net profit was 242 million yuan. Both its revenue and net profit have increased significantly. In comparison, this 8.1 billion order is equivalent to Jiuan Medical's revenue for four years, which really makes many sellers envious.

However, in the first half of 2021, the operating income of its own brand iHealth was still worrying. Relevant data showed that the operating income of iHealth under Jiuan Medical was 200 million yuan, and the company's net loss was close to 80 million yuan. This situation began to reverse in the second half of 2021, and the stock price of its parent company Jiuan Medical soared, increasing more than tenfold in half a year.

For iHealth, the heroes that helped it achieve high performance and high orders must be its own brand iHealth and its products that often top the Amazon BSR list.

iHealth is a hot seller on Amazon with multiple products at the top of the BSR list

As a brand under iHealth, iHealth sells forehead thermometers, blood pressure monitors, blood glucose meters and other medical products, which are regulars on Amazon's BSR lists in various subcategories.

Data shows that in July 2020, the forehead thermometers sold by iHealth performed very well on Amazon, with daily sales reaching 20,502 units. To this day, overseas consumers' demand for forehead thermometers remains unabated, and the iHealth brand still ranks at the top of the BSR list of baby temperature measurement products.

The way iHealth operates within the iHealth Medical system is that the parent company in Tianjin sells products to various overseas subsidiaries, and then the overseas subsidiaries are responsible for sales in various overseas regions. For example, iHealth America is responsible for the sales and promotion of products in the Americas, and iHealth Europe is responsible for the sales and promotion of products in the European, African and Middle Eastern markets...

There is no doubt that the epidemic has promoted the development of iHealth. Today, iHealth is advancing at a rocket -like speed, and various data have increased significantly compared with the previous ones . As the parent company of iHealth, iHealth's stock price has been rising since the second half of 2021. In just about half a year, the increase has exceeded ten times.

Jiuan Medical has a strong momentum, and its future planning and development have attracted the attention of industry insiders. It is reported that on January 17, 2022, an investor asked whether your company's US subsidiary iHealth might be listed in the United States in the future . In response, Jiuan Medical said that the company's US subsidiary iHealth currently has no plans to be listed in the United States .

iHealth's revenue in the first half of last year was only 200 million yuan, but now a single order has reached 8.1 billion yuan. The dozens-fold increase in data has amazed and envied many industry insiders, and has once again attracted the attention of many sellers to the trend of medical products.

In fact, since the beginning of 2020, the sales of protective products such as masks and protective clothing on the Amazon platform have surged, with the daily sales of medical masks exceeding 8,500 at one point, and the price increase reaching 583%. Data shows that on the Amazon platform, a best-selling KN95 mask in a pack of 40 was priced at US$26.99 in December last year, rising to US$75.99 in January this year.

The overseas epidemic continues to spread and the infection data is rising. Although the prices of such products have continued to rise, sales have also been increasing. The word "mask" has an average monthly search volume of more than one million on Google worldwide .

In addition, many overseas countries including Spain, France and Italy have successively resumed mask orders, which is also one of the main reasons for the "panic buying" of masks. It is worth mentioning that due to the resurgence of the epidemic in India, masks on major e-commerce platforms in India were snapped up by the public at the beginning of this year, and local people stockpiled a large amount of them, and the sales of N95 masks increased by 5 times.

Some industry insiders said that although it seems that the popularity of some epidemic prevention supplies is not as high as it was in the early days of the outbreak, products including masks, protective clothing, and thermometers are still areas that sellers can try.

Overseas consumers' demand for medical protective equipment and the emergence of the "stay-at-home economy" have brought different product selection ideas to cross-border sellers. Faced with this trend, sellers should make corresponding preparations in advance. Many cross-border platforms have requirements for the entry or sales qualifications of medical protective equipment. Sellers should pay more attention to product sources, qualifications and other relevant information.

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