“Science and Technology Innovation Board Daily”, November 22 (Reporter Zheng Bingxun) “Due to the influence of relevant factors in the medical field, the hospital's bidding activities have been delayed.” He Yongzheng, chairman of Xiangyu Healthcare (688626.SH), explained the decline in revenue at the 2024 third quarter results briefing held today.

In the third quarter of 2024, Xiangyu Medical achieved revenue of 0.169 billion yuan, a year-on-year decrease of 18.51%, and net profit to mother of 16.7781 million yuan, a year-on-year decrease of 76.55%. The first three quarters achieved revenue of 0.507 billion yuan, a year-on-year decrease of 6.50%, and net profit to mother of 73.4139 million yuan, a year-on-year decrease of 59.02%.

Xiangyu Medical said that the decrease in net profit was mainly due to increased sales expenses and R&D expenses. However, in response to the increase in sales expenses, He Yongzheng further revealed at the performance conference that part of the reason was the increase in related remuneration and travel expenses to strengthen the national and export sales network and participate in large-scale exhibitions at home and abroad.

According to data, Xiangyu Medical is a comprehensive product manufacturer and service supplier in the field of rehabilitation equipment. Its own products include rehabilitation assessment equipment, rehabilitation training equipment, rehabilitation equipment, rehabilitation aids, rehabilitation and nursing equipment. The customer base includes medical institutions, pension institutions, rehabilitation centers for the disabled, welfare homes, education systems, sports systems and other institutions and families at all levels across the country.

He Yongzheng also said that in the face of the impact of related factors, Xiangyu Medical is increasing its marketing efforts in the military, export, home, private sector, and outside hospitals, and actively cultivating a second growth curve to cope with the impact of various market factors in the short term.

Xiangyu Medical also revealed that the company has set up an international registration department under the International Business Department to focus on countries and regions along the “Belt and Road” and speed up the company's “going overseas” process.

However, the revenue of Xiangyu Medical has always mainly come from the domestic market. Between 2021 and 2023, revenue from mainland China accounted for 97.14%, 97.69%, and 98.87% of Xiangyu Medical's overall revenue, respectively. Corresponsively, foreign regions accounted for 1.39%, 1.36%, and 1.13% of revenue, respectively.

However, at the investor conference at the end of October, Xiangyu Medical revealed the latest developments in overseas travel, indicating that the export sales base in 2023 was low, but there was a large year-on-year increase in the first three quarters of this year.

As of October 30, in terms of EU CE certification, Xiangyu Medical expects the first batch of 4 products to obtain certificates in the first half of next year. In terms of multi-country registration, at the end of April this year, 9 products had obtained the Uzbek registration certificate, and in early July, 1 new product obtained the Indonesian registration certificate.

It is worth mentioning that in January 2023, 17 departments including the Ministry of Industry and Information Technology and the Health and Health Commission issued a notice on the “Robotic+” Application Action Implementation Plan, proposing breakthroughs in brain-computer interaction and other technologies in the medical and health care field to develop assistive robot products for injury rehabilitation.

In the first half of 2024, Xiangyu Medical became a member unit of the Brain-Computer Interface Industry Alliance.

He Yongzheng revealed at the performance conference that the layout of Xiangyu Medical in terms of brain-computer interfaces is mainly non-invasive rehabilitation equipment. The products are mainly psychosocial, EEG collection devices, active training, etc., and various products have already entered the registration process.

In terms of market-based arrangements for brain-computer interface products, He Yongzheng said, “Psychosocial products will reach marketable conditions as soon as this year. Active training products will obtain registration certificates next year, and EEG collection devices are expected to obtain registration certificates in the first half of next year.”