Mindray Medical’s 30th Anniversary: ​​Kunpeng goes to sea to change and remain unchanged

Starting as an agency, the total number of patent applications worldwide has exceeded 6,400;

From feeling the stones to sea more than 20 years ago, now the business covers more than 190 countries and regions around the world;

From the beginning, profits were difficult to support R&D expenditures, and in recent years, a series of beautiful performance answers have been continuously submitted;

From returning to A-shares in 2018, to now the market value has leaped 500 billion yuan, becoming a new "medicine brother";

From the rapid response to the global new crown epidemic, to the use of the epidemic to shine;

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As the leading domestic medical device, Mindray Medical (300760.
SZ) will reach its 30th birthday in 2021
.

Looking at the domestic medical device industry, there are only a handful of companies with a 30-year life cycle, and very few companies can become stronger and bigger
.
Mindray Medical, which has achieved outstanding results, not only has not ushered in the development bottleneck, but has been more advanced and has embarked on a comprehensive accelerated journey from import substitution to global substitution with more vigorous vitality

"Broad world, far beyond China", Mindray Medical now proposes to increase the proportion of overseas business to 70% and enter the ambitious goal of becoming the top 20 medical device companies in the world
.

Compared with Mindray Medical’s current overseas share of less than 50%, is this goal far away? Where is the confidence in its overseas expansion? Where is the driving force for its continued growth? .
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To explore the above answers, Sina Medicine had a special dialogue with Mindray Medical’s board secretary, Ms.
Li Wenmei, to provide us with an in-depth analysis of Mindray Medical’s latest financial report, as well as the growth logic and future strategic directions behind it
.

Eye-catching performance, accelerating global replacement

A few days ago, Mindray Medical announced the 2020 annual report, the data showed:

In 2020, Mindray Medical’s annual revenue was 21.
026 billion yuan, a year-on-year increase of 27%, net profit attributable to the parent was 6.
658 billion yuan, a year-on-year increase of 42.
24%, operating cash flow was 8.
87 billion yuan, a year-on-year increase of 87.
85%, and R&D investment was 2.
096 billion yuan.
A year-on-year increase of 27.
04%, accounting for 9.
97% of total revenue during the same period
.
Among them, according to the division of business lines, the growth rate of the life information and support business is the most impressive, with revenue and profit increasing by more than 50%, respectively.

       It can be seen that in 2020, when the global epidemic is raging, Mindray Medical has not only withstood the test of the epidemic, but also has a gratifying growth.
Whether it is revenue, profit, R&D investment, or cash flow, the outside world has once again seen this company.
Excellent business quality of the enterprise
.

       Among them, it is worth noting that the proportion of Mindray Medical’s overseas revenue is 47.
16% in 2020, which is steadily increasing from 43.
00% in 2018 and 42.
21% in 2019
.
In addition, the financial report also mentioned: In 2020, Mindray will supply more than 500,000 units of equipment to fight the epidemic, and has completed more than 700 high-end customers in the international market

       "What is the concept of more than 700 customers? This number exceeds the sum of the breakthroughs of high-end customers in the international market in the past 20 years of Mindray Medical
.
" Li Wenmei said: "It is such a surprising result that makes Mindray more confident to accelerate internationalization.

       Why does Mindray Medical attach so much importance to overseas markets?

       Li Wenmei said: “This is Mindray’s forward-looking strategic thinking

       As a local company starting from scratch, step by step onto the international stage, the difficulty of integrating into the main theme of the world medical device market can be imagined

       In Li Wenmei's view, Mindray's secret to going to sea is mainly in two aspects: "changeable" and "unchanged"
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       Mindray's "Fixiness"-Breakthrough and Innovation

       Mindray Medical’s “fickleness” is firstly reflected in its flexibility of “adapting measures to local conditions” and “adapting measures to current conditions”
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       Why is it said that adapting measures to local conditions must be the key to breaking the game at sea? It is well known that the national conditions, languages, and needs of each region are different, and these factors determine the different functional requirements of local consumers for products.
Therefore, manufacturing companies must not work behind closed doors and formulate development strategies based on local conditions
.

       Li Wenmei introduced that Mindray has always paid attention to the highly diversified and customized products in the process of going overseas
.
"Listen to and understand the market" and "close to customer needs" are the principles she repeatedly emphasized in interviews

       It is reported that when Mindray entered the European region, the high-end medical device market in Europe was almost monopolized by multinational giants such as General Electric, Philips and Siemens.
To break through this solid line of defense, Mindray could only work in a deeper and more detailed place.

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       The European region is not wide, but the languages ​​are diverse.
In order to better meet the needs of local customers, Mindray directly launched monitors in more than 20 languages.
With the advantage of "high price and high quality", it has captured many large customers in one fell swoop
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       In addition, Mindray also emphasizes "quick response" to customer needs
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       Prior to this, Mindray Medical Chairman Li Xiting said in an interview: “In 2020, Mindray has shipped hundreds of thousands of anti-epidemic equipment overseas without receiving a single complaint
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This is closely related to Mindray’s long-term focus on products and services.

       In addition to product flexibility, Mindray's marketing is also extremely flexible
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       Li Wenmei gave an example: "Unlike the Chinese market and most overseas markets that rely on agents, the American market is difficult to enter the certification, and it is mainly direct sales.
Mindray's past overseas promotion model has little effect here at the beginning
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However, the United States As the main battlefield of global medical equipment, Mindray’s internationalization strategy cannot bypass the mountain.
In order to gnaw off this hard bone, Mindray has spent a lot of time and cost in the US market to specifically build sales, markets, and markets that are compatible with the direct sales model.
A platform for after-sales service and clinical support, and in order to quickly increase its trust and brand awareness in the United States, Mindray chose to be listed on the New York Stock Exchange that year and became the first overseas listed company of a medical device company in China
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"

       In addition, Mindray has always paid attention to "adapting measures to the current conditions
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"

       Li Wenmei said: “Any market is constantly changing.
Nowadays, tight medical insurance funds and increasing financial pressure on hospitals are common worldwide.
At the same time, population aging has become the mainstream trend in the world.
To gain a firm foothold in the world and cover more people, enterprises need continuous innovation to achieve cost reduction and efficiency enhancement, and to give full play to the value characteristics of products with high cost performance
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"

       And this is also another aspect of Mindray's "fidelity"-the constant pursuit of "technical breaking"
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       Looking at any industry in the global market, "technological breaking" is considered to be the most likely to break through all policy and regulatory barriers, an irreversible force of change
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Any enterprise, without core competitiveness and differentiated advantages, can hardly develop sustainably
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For this reason, companies must do their best to be specialized, precise, and cutting-edge
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       "We have customized an ultrasound product for the anesthesiology department in American hospitals.
This product is characterized by no keyboard, just a tablet, and voice control.
This makes the operation of anesthesiologists very convenient, thus Reduce the occurrence of anesthesia accidents and reduce the harm to patients
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Moreover, the product fully considers the environment of frequent disinfection in the anesthesia department, and overcomes these problems in design and material selection.
Therefore, it quickly received enthusiastic response from the market after it was launched and became a model Explosive product, we will also bring it from the US market to other major markets around the world
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"

       Li Wenmei said: “Such innovations are found by Mindray’s staff in the hospital all day long.
It can not only truly meet the needs of customers, but also provide Mindray with a continuous source of innovation inspiration
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Mindray's organizational structure and The management mechanism ensures that a large number of these needs are observed
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"

       The gale starts at the end of Qingping, and many big things are often brewed in many small things
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Over the years, Mindray’s innovative advantages are precisely the qualitative changes caused by the accumulation of such a little quantitative change
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       And to ensure innovation, Mindray has continuously strengthened its global team building in recent years
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It is reported that as of the end of 2020, Mindray, headquartered in Shenzhen, has 39 overseas subsidiaries in more than 30 countries in North America, Europe, Asia, Africa, Latin America and other regions; and 20 domestic subsidiaries, more than 40 Branches, and established nine R&D centers around the world
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       At the same time, in order to better exert its strengths overseas, Mindray is now constantly implementing the "talent localization" and "technical localization" in overseas markets.
While promoting local employment and economic development, it has a better understanding and service of the local market.
Achieve a win-win situation
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       Mindray's "unchanged"-clear boundaries

       "Look at Mindray from the perspective of development," Li Wenmei said: "Mindray never sticks to a certain product, a certain market, or a certain customer group.
These are all changing with time and place, but Mindray also insists on the same.
Locally, that is to focus on clear boundaries in the field of medical devices
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"

       "Mindray's growth in the past 30 years has been hard work, meticulous work, and stupid work in the field of medical devices.
We resisted the temptation to do nothing except medical devices.
Our customers are only medical institutions
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"

       In Li Wenmei’s view, “The product classification of the medical device industry is complicated and subtle, and there are a large number of potential subdivisions
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These markets are also very large, and it is necessary to make them more precise, detailed, deep, and larger.
It takes a lot of work
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Therefore, in the field of medical equipment, we have been trying to make breakthroughs
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At present, only two products of Mindray have reached the recognized world leading level including the European and American markets, namely monitors and anesthesia machines.
, The next to complete this goal is expected to be blood cells, defibrillators and ventilators, and more products will accelerate to achieve global leadership
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"

       "At the same time, we hope to continue to bring the successful experience model into new fields, such as minimally invasive surgery, orthopedics, animal medicine and other high-value consumables fields, and we are also building IT information solutions, and continue to grow into A top medical device supplier that builds overall solutions for diseases, departments, and hospitals, and hopes that more and more good products can be used by more people in a more economical way
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"

       According to the principle of competence circle, Li Wenmei emphasized that Mindray Medical’s development strategy will only gather momentum and focus on medical devices
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       The favor of capital, the return will last forever

       As eye-catching as its performance, Mindray's performance in the capital market is also remarkable
.

       As of today’s close, Mindray Medical’s offer is 448.
85 yuan per share, which is over 9 times higher than the issue price of 48.
8 yuan per share for the return of A shares in October 2018
.
The latest market value reached 545.
6 billion yuan, surpassing Hengrui Pharmaceutical's over 100 billion yuan, becoming a new "medicine brother"
.

       It is understood that since 2020, during the epidemic period, Mindray Medical has "crossed the threshold" and has become the focus of investment
.

       Regarding the favor of investors, Li Wenmei said: “It is very gratifying that as Mindray Medical has received more and more investors’ attention, the A-share market has gradually deepened its understanding of the medical device industry
.
At the beginning of our return to A-shares Medical equipment is only a very small sector in the A-share market.
Nowadays, the medical equipment sector has received more and more attention, and there are more and more listed medical equipment companies, which is beneficial to the innovation and development of the entire industry
.
"

       Regarding the enthusiasm of investors, Li Wenmei said: “There are many factors influencing stock price fluctuations.
What we can do is to always adhere to a legal, compliant, fair and transparent attitude to face investors sincerely, and through running a good business, using outstanding The performance of the company will return investors and at the same time deepen investors’ confidence in Mindray Medical
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Real value investment can stand the test of time
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"

       In the next ten years, the sword will point to the top 20 in the world

       With the help of capital, relying on the spirit of dedication and relying on the strategy of "innovation + mergers and acquisitions + localization", Mindray's business now covers more than 190 countries and regions around the world
.

       It is understood that in the United States, which has the highest medical technology threshold and strictest technical regulations, Mindray's products have entered about two-thirds of hospitals and nearly 10,000 medical institutions, and are widely used in core departments such as ICU, anesthesiology, and emergency departments
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Among the top 10 heart hospitals in the United States, 9 are using Mindray's products
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In the top teaching hospitals in the UK, Germany, France and other European countries, Mindray provides high-quality overall solutions and complete information solutions for its core departments
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       In China, Mindray's products have successfully entered more than 99% of the top three hospitals, monitors, ventilators, infusion pumps, etc.
have become the first in the country, of which monitors account for more than 50% of the market
.

       Despite the remarkable achievements, Li Wenmei believes: "Mindray still has a long way to go whether it is import substitution or global substitution
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"

       In China, as the tide of medical reform rolls forward, the trend of improving quality and lowering prices is unstoppable, the process of import substitution is further improving, and medical institutions at all levels are constantly expanding.
The room for improvement in the domestic medical device market is still not to be underestimated
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In this regard, Mindray needs to unremittingly leverage its leading advantages of multi-product, multi-production line collaborative diagnosis and intelligent analysis capabilities accumulated over the years of independent research and development to accelerate its seizure of the domestic market
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       Looking at the world, technological iterations and alternation of old and new are also reshaping the global medical device landscape
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The epidemic has accelerated Mindray's penetration into the global market, allowing Mindray to change its identity from a follower to a challenger in the field of medical equipment in the world, opening its stage from entering the low-end market to conquering the global high-end market
.

       Many investors believe that under the new trend of profound adjustments in the domestic and foreign markets, Mindray’s annual revenue is expected to exceed 10 billion U.
S.
dollars in 5-10 years, and the long-term market value is likely to exceed 10,000.
Billion
.

       Therefore, for Mindray Medical, who is at the age of 30, is perhaps the most emboldened sigh: the world is so new, everything has not been named
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