Meihua International Medical Technologies Co., Ltd. Reports 2022 Financial Year Results
Meihua International Medical Technologies Co., Ltd. (MHUA) reported its financial results for the fiscal year ending December 31, 2022. Revenue was approximately $103.3 million, a 1% decrease from $104.0 million in 2021. Gross profit fell by 4% to about $38.1 million, leading to a decrease in gross margin from 38% to 37%. Income from operations dropped significantly by 59% to $10.8 million, while net income attributable to shareholders plummeted 70% to $6.2 million. The company cited challenges from supply chain disturbances and increased costs of materials. Despite these results, MHUA aims to diversify product offerings and expand into global markets in the future. Recent agreements signal potential growth areas, including partnerships for technology parks and developments in robotic surgical systems.
- Recent agreements with Hainan City for technology park and medical research center signify potential growth.
- Plans to develop a robotic surgical system and explore ChatGPT technologies for online health consultations suggest innovation and diversification.
- Revenues decreased by 1% to $103.3 million due to declining customer demand.
- Gross profit fell by 4%, with gross margin declining from 38% to 37%.
- Income from operations dropped 59% to $10.8 million.
- Net income decreased by 70% to $6.2 million.
YANGZHOU,
Fiscal Year 2022 Financial Metrics:
- Revenue remained stable and decreased slightly by
1% to approximately$103.3 million December 31, 2022 , from approximately$104.0 million December 31, 2021 . - Gross profit was approximately
$38.1 million December 31, 2022 , compared with approximately$39.8 million December 31, 2021 . - Gross margin decreased slightly to
37% for the year endedDecember 31, 2022 , from38% for the year endedDecember 31, 2021 . - Income from operations was approximately
$10.8 million December 31, 2022 , compared to approximately$26.3 million December 31, 2021 . - Net income attributable to shareholders was approximately
$6.2 million December 31, 2022 , compared to approximately$20.9 million December 31, 2021 .
For the Years Ended | |||||||||||
(in $ millions, except earnings per share; | 2022 | 2021 | % Change | ||||||||
Revenues | $ |
103.3 | $ | 104.0 |
(1 %) | ||||||
Gross profit | 38.1 | 39.8 | (4 %) | ||||||||
Gross margin |
37 % | 38 % | (1 percentage point) | ||||||||
Income from operations | 10.8 | 26.3 | (59 %) | ||||||||
Net income attributable to shareholders | 6.2 | 20.9 | (70 %) | ||||||||
Net income per share – Basic and Diluted | 0.27 | 1.05 | (75 %) | ||||||||
Mr.
Fiscal Year 2022 Financial Results:
Revenues
Revenues decreased by approximately
Cost of revenues
Cost of revenues primarily include cost of materials, direct labor costs, overhead, and other related incidental expenses that are directly attributable to the Company's principal operations. Cost of revenues increased by approximately
Gross profit and margin
Gross profit decreased by approximately
Operating costs and expenses
Our operating costs and expenses consist of selling expenses, general and administrative expenses and research and development expenses.
- Selling
Selling expenses increased by approximately
(a) Conference expenses increased by approximately
(b) Transportation expenses decreased by approximately
(c) Salaries and benefits expenses increased by approximately
(d) Entertainment expenses increased by approximately
- General and administrative expenses
General and administrative expenses increased by approximately
- Research and development expenses
Research and development expenses increased by approximately
Income from operations
As a result of the factors described above, our income from operations decreased by approximately
Net income
Our net income decreased by approximately
Recent developments
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About
Forward-Looking Statements
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 ability to achieve its goals and strategies, and its ability to fully execute on the planned agreement, the Company's future business development and plans of future business development, including its ability to successfully develop robotic assisted surgery systems and obtain licensure and certification for such systems, financial conditions 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
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CONSOLIDATED BALANCE SHEETS | ||||||||
As of | ||||||||
(US$, except share data or otherwise noted) | ||||||||
2022 | 2021 | |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash | $ | 26,736,700 | $ | 8,149,276 | ||||
Bank acceptance receivables | 22,085,846 | 19,379,845 | ||||||
Accounts receivable | 68,945,792 | 67,101,297 | ||||||
Inventories | 1,122,038 | 1,251,393 | ||||||
Prepayment and other current assets | 16,428,779 | 1,394,539 | ||||||
Total current assets | 135,319,155 | 97,276,350 | ||||||
Property, plant and equipment | 8,758,047 | 7,477,744 | ||||||
Intangible assets | 497,600 | 562,001 | ||||||
Investment | 6,669,655 | 941,531 | ||||||
Other noncurrent assets | 12,333,122 | - | ||||||
Deposits | - | 30,599,755 | ||||||
Total assets | $ | 163,577,579 | $ | 136,857,381 | ||||
Liabilities and shareholders' equity | ||||||||
Liabilities | ||||||||
Current liabilities | ||||||||
Short-term bank borrowings | $ | 6,089,428 | $ | 5,178,420 | ||||
Accounts payable | 16,096,165 | 20,981,041 | ||||||
Taxes payable | 1,131,276 | 2,082,252 | ||||||
Accrued expenses and other current liabilities | 856,698 | 847,066 | ||||||
Total current liabilities | 24,173,567 | 29,088,779 | ||||||
Long term loan | 724,932 | - | ||||||
Total liabilities | 24,898,499 | 29,088,779 | ||||||
Commitments and contingencies | ||||||||
Shareholders' equity | ||||||||
Ordinary share, | 11,970 | 10,000 | ||||||
Preferred share, | - | - | ||||||
Additional paid-in capital | 42,967,006 | 9,716,484 | ||||||
Statutory surplus reserves | 15,665,860 | 15,178,467 | ||||||
Retained earnings | 83,330,239 | 77,574,663 | ||||||
Accumulated other comprehensive income (loss) | (3,852,138) | 5,288,988 | ||||||
Total shareholders' equity | 138,122,937 | 107,768,602 | ||||||
Non-controlling interest | 556,143 | - | ||||||
TOTAL EQUITY | 138,679,080 | 107,768,602 | ||||||
Total liabilities and shareholders' equity | $ | 163,577,579 | $ | 136,857,381 | ||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||
For the years ended | ||||||||||||
(US$, except share data or otherwise noted) | ||||||||||||
For the Years Ended | ||||||||||||
2022 | 2021 | 2020 | ||||||||||
Revenues | ||||||||||||
Third party sales | $ | 103,317,145 | $ | 103,461,809 | $ | 88,244,403 | ||||||
Related party sales | 29,196 | 575,901 | 816,607 | |||||||||
Total revenues | 103,346,341 | 104,037,710 | 89,061,010 | |||||||||
Cost of revenues | 65,247,864 | 64,232,469 | 51,900,823 | |||||||||
Gross profit | 38,098,477 | 39,805,241 | 37,160,187 | |||||||||
Operating expenses | ||||||||||||
Selling | 7,109,524 | 6,457,801 | 6,624,332 | |||||||||
General and administrative | 12,468,551 | 4,361,472 | 4,577,570 | |||||||||
Research and development | 2,962,904 | 2,725,014 | 2,492,059 | |||||||||
Written-off of | 4,755,536 | - | - | |||||||||
Total operating expenses | 27,296,515 | 13,544,287 | 13,693,961 | |||||||||
Income from operations | 10,801,962 | 26,260,954 | 23,466,226 | |||||||||
Other (income) expense: | ||||||||||||
Interest expense | 194,667 | 180,744 | 137,160 | |||||||||
Interest income | (63,725) | (23,855) | (36,583) | |||||||||
Currency exchange gain | (273,432) | (174,413) | (393,478) | |||||||||
Other expense, net | 53,205 | 50,437 | 25,551 | |||||||||
Total other (income) expenses | (89,285) | 32,913 | (267,350) | |||||||||
Income before income tax provision | 10,891,247 | 26,228,041 | 23,733,576 | |||||||||
Income taxes expense | 4,713,543 | 5,278,462 | 4,688,321 | |||||||||
Net income | 6,177,704 | $ | 20,949,579 | $ | 19,045,255 | |||||||
Net loss attributable to non-controlling interests | (65,265) | - | - | |||||||||
Net income attributable to shareholders | 6,242,969 | 20,949,579 | 19,045,255 | |||||||||
Foreign currency translation adjustment – gain / | (9,155,028) | 2,083,243 | 4,759,973 | |||||||||
Comprehensive (loss) income | $ | (2,977,324) | $ | 23,032,822 | $ | 23,805,228 | ||||||
Comprehensive loss attributable to non- | (79,167) | - | - | |||||||||
Comprehensive (loss) income attributable to | (2,898,157) | 23,032,822 | 23,805,228 | |||||||||
Weighted average number of ordinary shares - | 23,411,068 | 20,000,000 | 20,000,000 | |||||||||
Basic & diluted net income per ordinary share | $ | 0.27 | $ | 1.05 | $ | 0.95 | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
For the years ended | ||||||||||||
(US$) | ||||||||||||
For the Year Ended | ||||||||||||
2022 | 2021 | 2020 | ||||||||||
Cash Flows from operating activities: | ||||||||||||
Net income | $ | 6,177,704 | $ | 20,949,579 | $ | 19,045,255 | ||||||
Adjustments for items not affecting cash: | ||||||||||||
Depreciation | 541,265 | 595,522 | 497,238 | |||||||||
Amortization | 22,196 | 26,951 | 26,195 | |||||||||
Net loss from disposal of property, plant and | 25,023 | 15,281 | 2,852 | |||||||||
Change in bad debt allowance | 4,755,536 | - | - | |||||||||
Currency exchange (gain) loss | (273,432) | - | - | |||||||||
Changes in operating assets and liabilities: | - | |||||||||||
Bank acceptance receivables | (4,284,515) | (6,533,717) | (5,764,940) | |||||||||
Accounts receivable | (7,121,889) | (20,065,904) | (13,644,830) | |||||||||
Inventories | 35,027 | 105,121 | (219,787) | |||||||||
Prepayments and other assets | (4,932,145) | (861,799) | (367,249) | |||||||||
Due from related parties | - | 396,583 | (222,504) | |||||||||
Accounts payable | (3,371,275) | 4,908,971 | 5,341,710 | |||||||||
Taxes payable | (812,412) | 288,659 | 598,105 | |||||||||
Accrued expenses and other current liabilities | 75,879 | 120,090 | 102,749 | |||||||||
Due to related parties | - | - | (68,798) | |||||||||
Net cash (used in) provided by operating activities | (9,163,038) | (54,663) | 5,325,996 | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchases of property, plant and equipment | (2,698,729) | (850,231) | (3,808,259) | |||||||||
Payments for long-term deposits for buildings | - | - | (12,311,347) | |||||||||
Long term investment | (5,944,709) | - | - | |||||||||
Proceeds from disposal of property, plant and | 23,146 | 16,414 | 25,202 | |||||||||
Net cash used in investing activities | (8,620,292) | (833,817) | (16,094,404) | |||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from short-term bank borrowings | 7,579,135 | 6,510,820 | 4,359,665 | |||||||||
Proceeds from long-term bank loans | 743,052 | - | - | |||||||||
Capital contributed by non-controlling shareholders | 635,310 | - | - | |||||||||
Proceeds from initial public offering | 34,529,644 | - | - | |||||||||
Proceeds from issuance of shares | - | 1,272,232 | ||||||||||
Repayments of short-term bank borrowings | (6,241,641) | (4,650,586) | (3,925,147) | |||||||||
Net cash provided by financing activities | 37,245,500 | 1,860,234 | 1,706,750 | |||||||||
Effect of foreign exchange rate changes | (874,746) | (9,812) | 218,137 | |||||||||
Net increase (decrease) in cash | 18,587,424 | 961,942 | (8,843,521) | |||||||||
Cash, beginning of year | 8,149,276 | 7,187,334 | 16,030,855 | |||||||||
Cash, end of year | $ | 26,736,700 | $ | 8,149,276 | $ | 7,187,334 | ||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS | ||||||||||||
Cash paid during the period for: | ||||||||||||
Interest | $ | 194,667 | $ | 180,744 | $ | 137,160 | ||||||
Income taxes | $ | 5,703,288 | $ | 5,042,816 | $ | 4,362,169 | ||||||
Non cash provided (used) in financing activities | ||||||||||||
Shareholder contribution through deferred cost | 1,277,152 | |||||||||||
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