Net profit of 3.8 billion in three months, small gloves leverage big performance

Recently, Intech Medical released its first quarter 2021 performance forecast. The report shows that during the reporting period ending March 31, 2021, its net profit attributable to shareholders of listed companies reached 3.6-3.8 billion yuan, compared with 1.3 billion yuan in the first quarter of 2019, a year-on-year increase of 2687%-2841%. The editor can't help but sigh that this company can really make money!

(Image source: Intech Medical Financial Report)

Intech Medical's net profit in 2020 exceeded 7 billion

As a comprehensive supplier of medical care products, Yinke Medical Technology Co., Ltd.'s main businesses are medical protection, rehabilitation care, health care and physiotherapy, and examination consumables. The main products sold include disposable gloves, wheelchairs, hot and cold compresses, electrodes and other types of care products.

It is worth noting that nearly 90% of Intech Medical's revenue comes from overseas, mainly in North America, Europe, Japan and the Middle East . Its export business model mainly includes ODM and independent brands, and its products are sold on platforms such as Amazon and offline .

The 2020 epidemic brought Intech Medical to the public's attention. The demand for disposable gloves in the domestic and overseas markets increased sharply. The unexpected situation caused the entire industry to face a serious shortage of supply and demand . Intech Medical responded to the situation, rapidly expanded production and continuously increased its market share . It can be said that it is a glove company that has become popular in the wind .

Yinke Medical's performance growth began in the second quarter of 2020. During the period from 2017 to 2019, Yinke Medical's annual net profit basically remained around 100 million. Since the second quarter of 2020, its net profit has continued to soar, driving its 2020 operating income to 13.8 billion, an increase of 564% compared with the same period last year; the net profit attributable to the parent company reached 7 billion yuan, a 38-fold increase compared with the same period in 2019.

(Image source: Tonghuashun)

Gloves account for the largest proportion of Intech Medical's sales

According to Yinke Medical's semi-annual report, sales revenue of medical protection products accounted for the highest proportion of the company's total operating revenue, 96%, reaching 4.3 billion yuan; followed by rehabilitation and nursing products accounting for 2.31%, reaching 100 million yuan; relatively speaking, sales revenue of health care and physiotherapy and examination consumables accounted for a relatively low proportion, at 1% and 0.27% respectively.

The 2019 report shows that the sales revenue of glove products was 1.7 billion yuan, accounting for 83.05% of the company's total operating revenue, and the sales revenue of wheelchair products was 200 million yuan, accounting for 9.81% of the company's total operating revenue. It can be seen that glove products are the main sales force of Intech Medical and are favored by consumers at home and abroad.

In 2020, with the help of the epidemic, the demand for disposable protective gloves has risen sharply, especially nitrile gloves, and the price remains high in 2021. Intech Medical said that some of the company's nitrile glove orders have been scheduled to the third quarter of this year, which also led to a high increase in the company's performance in the first quarter, a month-on-month increase of 36-44%.

It has to be said that there are reasons for Yinke Medical's success. It became really popular with the help of the epidemic, but sellers who want to enter the medical field also need to pay attention and do a good job of product selection to prepare for explosive orders.

Quarterly Report

Net Profit

Gloves