Recently, Jiu'an Medical treatment 2Bestnewblockchaingames.SZ, share price 40Bestnewblockchaingames.43 yuan, with a market capitalization of 19.763 billion yuan.) release quarterly results for 2023 and 2024. 2023, the companyBestnewblockchaingamesThe income and net profit of returning home decreased by 87.72% and 92.19% respectively compared with the same period last year. In the first quarter of this year, the company's revenue and return net profit decreased by 49.03% and 58.86%, respectively.

As a former star anti-epidemic unit, Jiu'an Medical's performance fell sharply in 2023 as expected, but as a medical device company, the company is far more enthusiastic about investing in hard-tech tracks such as new energy vehicles and artificial intelligence.

According to the annual report, the company currently holds shares of Xiaomi Group, Xiaopeng Automobile, ideal Automobile and Weilai in China. In mid-March, the company's share price rose suddenly, and then issued an announcement to explain the investment of the main body of the start-up "Dark side of the Moon" of the domestic artificial intelligence big language model.

This is related to the surge in the company's cash reserves, but it is also the company's defense against uncertain risks in the future. The reporter noted that the company's diabetes care business-related income in 2023 was 37.2104 million yuan, "it will take some time to scale up."

The decrease of 88.78% in the revenue of iHealth series products is still the main source of income.

According to the annual report, the income of Jiu'an Medical Care reached 3.231 billion yuan in 2023, a decrease of 87.72% over the same period last year.BestnewblockchaingamesThe net profit from home was 1.252 billion yuan, down 92.19% from the same period last year, while the non-net profit was 1.004 billion yuan, down 93.86% from the same period last year.

Photo Source: Jiu'an Medical 2023 Annual report

Jiuan Medical has explained in the performance forecast that the decline in performance is related to iHealth in vitro diagnostic testing products. Specifically, the global COVID-19 epidemic is more serious in 2022, the company's kit products sell well in the United States market, and led to a substantial increase of 16.64 times the company's performance that year. However, with the normalization of epidemic prevention and control, the demand for related products in the US market has declined, and the company's performance has dropped sharply.

However, from a sub-industry point of view, the special equipment manufacturing industry achieved revenue of 3.099 billion yuan in 2023, accounting for 95.60% of the total revenue of Jiu'an Healthcare. Although the revenue of the BeneHealth series products decreased by 88.78% to 2.912 billion yuan compared with the same period last year, it is still the company's main source of revenue. On September 21, 2023, Jiu'an Medical once again learned that iHealth USA subsidiary had once again won the US federal government's kit purchase contract with a contract value of US $167 million.

Compared with the previous contract value of billions of dollars, the signing reflects that the market demand for antigen self-test kits is coming to an end, but Jiuan Medical sees market opportunities for home self-test products and home health products. The company said that in order to meet the needs of the global market, in the future, the company will make full use of the brand advantages formed by the best-selling iHealth thermometers and kits in the United States in recent years, and push Chinese competitive technologies and products to the American market according to market demand.

In the annual report, the company lists three kinds of products, one is the triple testing products for Covid antigen, influenza A virus antigen and influenza B virus antigen, which are currently in the process of FDA EUA audit in the United States, and the other is the continuous Blood glucose Monitor (CGMS) project, which is one of the company's key investment projects. The company plans to continue to increase investment in 2024 in order to improve the progress of project construction. Third, intelligent hearing aids. Aiming at this product, the company has conducted in-depth exchanges with "UC Irvine" and "Pacific University" universities in audiology and brain nerves, hearing rehabilitation, professional training of fitters, and matching process planning, and reached a willingness to cooperate.

The diabetes care business generated 37.2104 million yuan in revenue, and the stock price changed due to changes in investment.

How to make rational use of the large amount of income brought by the kit products? The answer given by Jiu'an Medical is investment.

According to the annual report, the company conducted in-depth research on more than 100 top asset management companies and fund companies around the world, and participated in more than 300 special meetings related to global first-tier investment institutions. at present, it has established investment partnerships with more than 15 first-tier asset management companies, and continues to improve the company's comprehensive ability to allocate large categories of assets.

As of the end of 2023, the balance of cash and cash equivalents of the company reached 2.29 billion yuan, but the decrease for the whole of 2023 was 3.269 billion yuan. In 2023, the annual investment income of Jiu'an Medical is 561 million yuan.

From the point of view of the investment direction, the cutting-edge technology fields such as hard technology, medical health, artificial intelligence, biological manufacturing, new energy and new materials are the favorite track for the company. According to the annual report, Jiu'an Medical currently holds National Trust and US Treasuries, as well as Xiaomi Group, Quide l, Xiaopeng Automobile, ideal Automobile, and Weilai shares, of which Xiaomi Group takes into account changes in the cumulative fair value of its equity of 40.6875 million yuan.

Jiu'an Medical Securities Investment in 2023 Photo Source: Jiu'an Medical Annual report

One of the closely watched investments is the company's investment in the dark side of the domestic artificial intelligence big language model start-up, which is equivalent to US $30 million, which is believed by the market to be the main reason for the company's stock price rise in mid-March.

However, the reporter noted that according to the six investor relations activity records released by Jiu'an Medical in 2024, the prospect of institutional research on the company's diabetes care business is far greater than investment. In fact, as one of the two core strategies of Jiu'an Medical, the diabetes care business has begun to generate revenue, with related income reaching 37.2104 million yuan in 2023, accounting for about 1% of the total revenue.

Among them, the domestic income is about 20.7724 million yuan and the foreign income is about 16.438 million yuan. In China, the new model of diabetes diagnosis, treatment and care is being accelerated in about 50 cities and more than 310 hospitals across the country, caring for more than 220000 patients; abroad, American subsidiaries have cooperated with about 60 clinics through the new model, forming a good reputation, caring for about 15000 patients. In September last year, the company was established in its new office in Sacramento, California, USA, and worked with the Northern California Physicians Group to promote the process of Internet + Medical Care solution.

However, Jiuan Medical once bluntly stated in an institutional survey in January this year that "this model is in the promotion stage and requires sustained and stable capital investment" and "currently there is a small amount of service fee income, and scale will take some time." This means that it is difficult for this business to grow into the performance pillar of Jiu 'an Medical in the short term. The company's future performance still depends on "hot products", but it is difficult to reproduce perfect hot products like antigen self-testing kits.

(Source of cover photo: Photo by every reporter Li Shaoting)