Meihua International Medical Technologies Co., Ltd. Reports 2021 Financial Year Results
Rhea-AI Summary
Meihua International Medical Technologies Co., Ltd. (MHUA) reported a 16.82% increase in revenue for fiscal year 2021, totaling $104.04 million, compared to $89.06 million in 2020. Gross profit rose 7.13% to $39.81 million, though gross margin slightly decreased to 38.26%. Net income increased by 4.99% to $20.00 million. As of December 31, 2021, the company held over $8 million in cash. Recent developments include a successful IPO in February 2022, raising $39.4 million.
Positive
- Revenue growth of 16.82% to $104.04 million in FY 2021.
- Net income increased by 4.99% to $20 million for FY 2021.
- Strong cash reserves of over $8 million as of December 31, 2021.
- Successful IPO raising $39.4 million in February 2022.
Negative
- Gross margin decreased to 38.26% from 41.72% in FY 2020.
- Increased costs of revenues by 12.33 million to $64.23 million.
News Market Reaction 1 Alert
On the day this news was published, MHUA gained 6.12%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
YANGZHOU, China, Aug. 1, 2022 /PRNewswire/ -- Meihua International Medical Technologies Co., Ltd. ("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 financial results for the fiscal year ended December 31, 2021. All amounts are in U.S. dollars.
Fiscal year 2021 highlights:
- Revenue increased by
16.82% to$104.04 million for the year ended December 31, 2021, from$89.06 million for the year ended December 31, 2020. - Gross profit increased by
7.13% to$39.81 million for the year ended December 31, 2021, from$37.16 million for the year ended December 31, 2020. - Gross margin slightly decreased to
38.26% for the year ended December 31, 2021, from41.72% for fiscal year 2020. - Income from operations increased by
7.80% to$25.30 million for the year ended December 31, 2021, from$23.47 million for the year ended December 31, 2020. - Net income increased by
4.99% to$20.00 million for year ended December 31, 2021 from$19.05 million for the year ended December 31, 2020.
For fiscal years ended December 31 | |||||
($ millions, except per share data, differences due to rounding) | 2021 | 2020 | % Change | ||
Total revenues | $ 89.06 | 16.82 % | |||
Gross profit | $ 39.81 | $ 37.16 | 7.13 % | ||
Gross margin | 38.26 % | 41.72 % | 3.46pp* | ||
Income from operation | $ 25.30 | $ 23.47 | 7.80 % | ||
Net income | $ 20.00 | $ 19.05 | 4.99 % | ||
Net income per share – Basic and Diluted | $ 1.00 | $ 0.95 | 5.26 % | ||
* Percentage points | |||||
Mr. Yongjun Liu, Chairman of the Company, commented: "During the past year COVID-19 still hangs over the world and poses many new challenges and opportunities to the economy and the medical industry in various countries. Thanks to our extensive product offerings, a strong upstream and downstream supply chain system and technical upgrades to our equipment and production capacity, our total sales increased to more than
"Under our core value that 'science and technology lead production,' we plan to complete the construction of a new factory for the production of coronavirus detection and prevention products this year. In this way we can continue to maintain and expand our leading position in the industry in this environment as the spread and variation of the pandemic continues. We believe that the ongoing strategy of new product development and production capacity upgrades will further distinguish Meihua from a segmented market and enable us to become one of the world's leading medical device suppliers in the next few years. At the same time, we will continue to monitor the changing market conditions in order to timely optimize our operation strategies and maintain rapid growth post-pandemic and create stable and long-term value returns for investors.
"As a medical device manufacturer with a leading position in the industry and a long history of more than 30 years, while developing at a high speed, we still adhere to a strict pursuit of product quality and production safety. Regardless of the type of products and their margins, the company uses a unified high standard of production and services. Because Meihua's products concern human life and health, we can't tolerate any carelessness. After the ups and downs of 2021, the company continues to maintain its commitment to the development and scientific research of new products, improve our production efficiency, and win long-term sustainable growth with high-quality after-sales service. We are dedicated to playing an important role in the global medical device supply chain."
Mr. Yulin Wang, CEO and interim CFO of the Company, commented: "Overall, we achieved solid revenue growth in fiscal year 2021 and greatly optimized the Company's operational efficiency with our net income expanding by nearly
"With our strong cash position we are confident in the sustainable profitability of all of our core key businesses, which maintained a strong gross margin at about
"The Covid-19 outbreak posed some challenges to the Company's financial works that led to a slight delay in the reporting of our financial results. But we quickly adjusted and resolved all issues. Meihua will deliver sustainable growth and provide timely update on our business to cement investor confidence in the future."
Fiscal Year 2021 Financial Results
The following table sets forth a summary of our consolidated results of operations for the periods presented:
Revenues
Revenues increased by
Cost of revenues
Cost of revenues primarily include cost of materials, direct labors, overhead, and other related incidental expenses that are directly attributable to the Company's principal operations. Cost of revenue increased by
Gross profit and margin
Gross profit increased by
Operating costs and expenses
Our operating costs and expenses, consisting of selling expenses, general and administrative expenses and research and development expenses, increased by
Selling expenses decreased by
- The Company did not conduct additional market research in fiscal year 2021 as market research activities incurred in fiscal year 2020 were still valid. Market research expenses were nil in fiscal year 2021 as compared to
$579,357 in fiscal year 2020. - The increase in sales led to an increase of
$329,025 in transportation expenses for fiscal year 2021 to$2.80 million . - Salaries and benefits expenses increased by
$176,995 to$1.29 million for the year ended December 31, 2021. The increase was mainly attributable to the COVID-19 pandemic in China had been brought under control and the local government had canceled the social insurance relief policy. - Entertainment expenses decreased
$83,365 to$0.79 million for the year ended December 31, 2021. The decrease was mainly attributable to the fact that Yangzhou City in the PRC had been under lockdown for some period due to the epidemic in fiscal 2021, so the relevant business entertainment expenses were reduced.
General and administrative expenses increased by
Research and development expenses increased by approximately
Income from operations
As a result of the factors described above, our income from operations increased by
Net income
As a result of the factors described above, our net income increased by
Cash
Cash was
Recent developments
On February 19, 2022, the Company announced the closing of its initial public offering (the "Offering") of 3,940,000 ordinary shares at a public offering price of
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 drops bottle, 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, puncture kits, under its own brands and also distributes such disposable medical devices sourced 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 over 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 Statement
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; 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 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
EverGreen Consulting Inc.
Ms. Janice Wang, Managing Partner
Email: IR@changqingconsulting.com
Phone: +1 470 940 3308 (from U.S.)
+86 13811768559 (from China)
MEIHUA INTERNATIONAL MEDICAL TECHNOLOGIES CO., LTD. CONSOLIDATED BALANCE SHEETS As of December 31, 2021 and 2020 (US$, except share data and per share data, or otherwise noted)
| ||||||||
December 31, | December 31, | |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash | $ | 8,149,276 | $ | 7,187,334 | ||||
Bank acceptance receivables | 19,379,845 | 12,467,785 | ||||||
Accounts receivable | 67,101,297 | 45,696,336 | ||||||
Inventories | 1,251,393 | 1,326,090 | ||||||
Deferred IPO costs and other current assets | 1,394,539 | 496,612 | ||||||
Due from related parties | - | 392,074 | ||||||
Total current assets | 97,276,350 | 67,566,231 | ||||||
Property, plant and equipment, net | 7,477,744 | 7,102,477 | ||||||
Intangible assets, net | 562,001 | 575,519 | ||||||
Investment | 941,531 | 919,540 | ||||||
Deposits | 30,599,755 | 29,885,057 | ||||||
Total assets | $ | 136,857,381 | $ | 106,048,824 | ||||
Liabilities and shareholders' equity | ||||||||
Liabilities | ||||||||
Current liabilities | ||||||||
Short-term bank borrowings | $ | 5,178,420 | $ | 3,218,391 | ||||
Accounts payable | 20,981,041 | 15,637,853 | ||||||
Taxes payable | 2,082,252 | 1,748,242 | ||||||
Accrued expenses and other current liabilities | 1,805,399 | 708,558 | ||||||
Total current liabilities | 30,047,112 | 21,313,044 | ||||||
Total liabilities | 30,047,112 | 21,313,044 | ||||||
Commitments and contingencies | ||||||||
Shareholders' equity | ||||||||
Ordinary share, | 10,000 | 10,000 | ||||||
Preferred share, | - | - | ||||||
Additional paid-in capital | 9,716,484 | 9,716,484 | ||||||
Statutory surplus reserves | 15,178,467 | 15,178,467 | ||||||
Retained earnings | 76,616,330 | 56,625,084 | ||||||
Accumulated other comprehensive income | 5,288,988 | 3,205,745 | ||||||
Total shareholders' equity | 106,810,269 | 84,735,780 | ||||||
Total liabilities and shareholders' equity | $ | 136,857,381 | $ | 106,048,824 | ||||
MEIHUA INTERNATIONAL MEDICAL TECHNOLOGIES CO., LTD. CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the years ended December 31, 2021, 2020 and 2019 (US$, except share data and per share data, or otherwise noted)
| ||||||||||||
For the Years Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Revenues | ||||||||||||
Third party sales | $ | 103,461,809 | $ | 88,244,403 | $ | 78,799,618 | ||||||
Related party sales | 575,901 | 816,607 | 826,453 | |||||||||
Total revenues | 104,037,710 | 89,061,010 | 79,626,071 | |||||||||
Cost of revenues | 64,232,469 | 51,900,823 | 47,415,110 | |||||||||
Gross profit | 39,805,241 | 37,160,187 | 32,210,961 | |||||||||
Operating expenses | ||||||||||||
Selling | 6,457,801 | 6,624,332 | 5,405,638 | |||||||||
General and administrative | 5,319,805 | 4,577,570 | 4,203,406 | |||||||||
Research and development | 2,725,014 | 2,492,059 | 3,214,326 | |||||||||
Total operating expenses | 14,502,620 | 13,693,961 | 12,823,370 | |||||||||
Income from operations | 25,302,621 | 23,466,226 | 19,387,591 | |||||||||
Other (income) expense: | ||||||||||||
Interest expense | 180,744 | 137,160 | 97,790 | |||||||||
Interest income | (23,855) | (36,583) | (48,842) | |||||||||
Currency exchange (gain) loss | (174,413) | (393,478) | 89,472 | |||||||||
Other expense (income), net | 50,437 | 25,551 | (735) | |||||||||
Total other (income) expenses | 32,913 | (267,350) | 137,685 | |||||||||
Income before income tax provision | 25,269,708 | 23,733,576 | 19,249,906 | |||||||||
Income taxes expense | 5,278,462 | 4,688,321 | 3,818,709 | |||||||||
Net income | 19,991,246 | $ | 19,045,255 | $ | 15,431,197 | |||||||
Foreign currency translation adjustment – gain / (loss) | 2,083,243 | 4,759,973 | (579,862) | |||||||||
Comprehensive income | $ | 22,074,489 | $ | 23,805,228 | $ | 14,851,335 | ||||||
Weighted average number of ordinary shares - basic and diluted | 20,000,000 | 20,000,000 | 18,575,000 | |||||||||
Basic & diluted net income per ordinary share | $ | 1.00 | $ | 0.95 | $ | 0.83 | ||||||
MEIHUA INTERNATIONAL MEDICAL TECHNOLOGIES CO., LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31, 2021, 2020 and 2019 (US$)
| ||||||||||||
For the Year Ended December 31 | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Cash Flows from operating activities: | ||||||||||||
Net income | $ | 19,991,246 | $ | 19,045,255 | $ | 15,431,197 | ||||||
Adjustments for items not affecting cash: | ||||||||||||
Depreciation | 595,522 | 497,238 | 481,062 | |||||||||
Amortization | 26,951 | 26,195 | 28,159 | |||||||||
Net gain (loss) from disposal of property, plant and | 15,281 | 2,852 | (9,530) | |||||||||
Changes in operating assets and liabilities | - | - | ||||||||||
Bank acceptance receivables | (6,533,717) | (5,764,940) | 1,867,373 | |||||||||
Accounts receivable | (20,065,904) | (13,644,830) | (4,708,608) | |||||||||
Inventories | 105,121 | (219,787) | 802,610 | |||||||||
Deferred IPO costs and other current assets | (861,799) | (367,249) | 234,424 | |||||||||
Due from related parties | 396,583 | (222,504) | (22,486) | |||||||||
Accounts payable | 4,908,971 | 5,341,710 | (4,229,062) | |||||||||
Taxes payable | 288,659 | 598,105 | (447,543) | |||||||||
Accrued expenses and other current liabilities | 1,078,423 | 102,749 | (180,801) | |||||||||
Due to related parties | - | (68,798) | 61,521 | |||||||||
Net cash (used in) provided by operating activities | (54,663) | 5,325,996 | 9,308,316 | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchases of property, plant and equipment | (850,231) | (3,808,259) | (266,744) | |||||||||
Payments for long-term deposits for buildings | - | (12,311,347) | - | |||||||||
Payments for land use right | - | - | (8,685,456) | |||||||||
Proceeds from disposal of property, plant and equipment | 16,414 | 25,202 | 50,601 | |||||||||
Net cash used in investing activities | (833,817) | (16,094,404) | (8,901,599) | |||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from short-term bank borrowings | 6,510,820 | 4,359,665 | 2,605,637 | |||||||||
Proceeds from ordinary shares subscribed | - | - | 344,739 | |||||||||
Proceeds from issuance of shares | - | 1,272,232 | - | |||||||||
Repayments of short-term bank borrowings | (4,650,586) | (3,925,147) | (2,026,606) | |||||||||
Net cash provided by financing activities | 1,860,234 | 1,706,750 | 923,770 | |||||||||
Effect of foreign exchange rate changes | (9,812) | 218,137 | (103,255) | |||||||||
Net increase (decrease) in cash | 961,942 | (8,843,521) | 1,227,232 | |||||||||
Cash, beginning of year | 7,187,334 | 16,030,855 | 14,803,623 | |||||||||
Cash, end of year | $ | 8,149,276 | $ | 7,187,334 | $ | 16,030,855 | ||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS | ||||||||||||
Cash paid during the period for: | ||||||||||||
Interest | $ | 180,744 | $ | 137,160 | $ | 97,790 | ||||||
Income taxes | $ | 5,042,816 | $ | 4,362,169 | $ | 3,898,200 | ||||||
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SOURCE Meihua International Medical Technologies Co., Ltd.
FAQ
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