March 11, 2024VISHEEMedical (688580)Published the "Record of Investor Relations Activities," which provided detailed introductions and answers regarding the company's performance, product layout, and market strategies.
# VISHEE Medical QuestionsReview of Exchanges
# Has the company-level performance appraisal target for the company's 2023 Equity Incentive Plan been achieved?A: According to the company's "2023 Annual Earnings Flash Report," the after-tax expenses from share-based payments generated by the implementation of the equity incentive plan in 2023 amounted to RMB 16,658,300. Excluding the impact of share-based payments and income tax, the net profit attributable to the parent company's owners was RMB 153,089,100, representing a 64.02% increase compared to the same period last year (net profit attributable to the parent company’s owners after excluding share-based payment expenses). Based on the above circumstances, it is preliminarily determined that the company has achieved its 2023 equity incentive targets. (The above data is unaudited, and specific figures will be disclosed in the company's 2023 annual report.)# How was the company's operating situation in the first quarter of this year? What are the performance targets for this year?A: Since the beginning of 2024, the company's production and operation have been stable and orderly, and all tasks have been actively carried out. Going forward, the company will, as always, focus on the development of its main business, continuously strengthen its profitability and core competitiveness, further enhance market expansion and channel construction, and accelerate the progress of obtaining certifications for ongoing projects, with the aim of maintaining a healthy and positive growth trend in both revenue and net profit.According to the company's 2023 Restricted Stock Incentive Plan, the performance assessment target at the company level for 2024 is that the company must meet one of the following two conditions:1. Based on the operating revenue in 2022, the operating revenue growth rate in 2024 shall be no less than 80%.2. Based on the net profit of 2022, the net profit growth rate in 2024 shall be no less than 110%. The company will make every effort to achieve the 2024 equity incentive assessment target. The above-mentioned "operating revenue" refers to the audited operating revenue of the listed company; the above-mentioned "net profit" refers to the net profit attributable to shareholders of the listed company, excluding the impact of share-based payment expenses from this and other equity incentive plans as the calculation basis. According to the 2024 equity incentive performance target, the company has completed the breakdown of single-quarter performance indicators. Currently, all staff are actively carrying out various tasks to fully accomplish the annual predetermined equity incentive goals.# Could you please tell me what specific products your company currently has in the neuromodulation business, and whether you will consider expanding into the implantable neuromodulation field in the future?Answer: VISHEE currently has a long-term business layout in the non-invasive neuromodulation field. The company's second-generation transcranial magnetic stimulator boasts multiple competitive advantages such as multi-channel, free combination of deep and shallow stimulation, and condition-specific coils. It provides state-of-the-art non-invasive neuromodulation treatments in the fields of mental health and neural conduction. Currently, it includes various models specifically designed for psychiatric rehabilitation, neurological rehabilitation, pediatric use, and automatic navigation. Since the launch of the second-generation product, the business scale and clinical penetration rate have grown rapidly, receiving positive market feedback.Meanwhile, in late August 23, the company successfully launched a cooperation project for "Transcranial Electrical Stimulators," which will further synergize the advancement and application of Transcranial Magnetic Stimulation and Transcranial Electrical Stimulation technologies in the field of neuroscience, continuously enhancing the company’s technical capabilities in neuromodulation. Currently, the company does not have any implantable neuromodulation products under research or sales; future plans will integrate the development trends and directions of the neuromodulation field to continually expand its business layout.# How will the company's rehabilitation specialty business be laid out in the future?A: After the company went public, it has continuously increased the layout of core products in the rehabilitation specialty, enriching the company’s product portfolio in this field. Currently, a comprehensive "Rehabilitation Loop" solution has been launched for rehabilitation departments in tertiary hospitals, covering areas such as neuromodulation, critical care rehabilitation, sports rehabilitation, pelvic floor rehabilitation, and psychological cognitive rehabilitation. Subsequently, more high-quality solutions tailored to clinical needs will be introduced to further enhance the development of specialized rehabilitation sub-disciplines. The company is committed to perfecting a multi-dimensional and fully-covered channel system to achieve robust growth in its fundamental rehabilitation specialty business.# What products does your company include in the field of pediatric rehabilitation?Product Layout?Answer: In the fields of children's neurodevelopment and mental psychological rehabilitation, the company has developed a mature solution for pediatric rehabilitation, offering safe and effective non-drug rehabilitation treatments for children. The current product portfolio includes pediatric-specific versions of transcranial magnetic stimulators, bio-stimulation feedback devices, and multi-parameter biofeedback devices. In the future, the company will also actively expand into pediatric-specific group biofeedback devices and cognitive dysfunction software, which can be used for the rehabilitation of conditions such as autism, ADHD, cerebral palsy, and developmental delays, supporting the healthy growth of children.# At the beginning of the year, the General Office of the State Council issued the "Opinions on Developing the Silver Economy and Enhancing the Well-being of the Elderly". Would your company consider increasing investment in areas related to the silver economy?A: Developing the silver economy can not only help address the practical issues faced by the elderly population and improve their quality of life, but also foster new drivers of development and promote high-quality socio-economic progress.The company will continue to focus on the silver economy-related business field for a long time. Currently, it has a rich layout of rehabilitation product matrix related to the silver economy. Among them, the company's transcranial magnetic stimulation products can be used in the rehabilitation department, psychiatry, and neurology department for the detection and evaluation of nerve functions, as well as the treatment of related diseases, such as Parkinson's disease, insomnia, post-stroke motor function recovery, etc.The cognitive dysfunction treatment software products of the company are applied in the departments of psychiatry, psychology, geriatrics, rehabilitation, and neurology, for the adjuvant treatment of mild cognitive impairment.In addition, the company's rehabilitation robot products can assist elderly paraplegic patients, hemiplegic patients, and traumatic brain injury patients in regaining walking ability, as well as aid post-operative or other patients with motor dysfunction in rehabilitation training.VISHEE will continue to launch more high-quality rehabilitation products that meet clinical needs, improve the construction of a comprehensive three-dimensional rehabilitation channel system, promote the vigorous development of the silver economy, meet the multi-faceted health and wellness needs of the elderly population, and enhance the well-being of seniors!# May I ask about the subsequent business development and scaling strategy for your company's rehabilitation robot products?Answer: The rehabilitation medicine department requires a wide variety of rehabilitation devices, covering a broad range. The main types include physical therapy equipment, rehabilitation assessment, and training equipment, etc. The company's intelligent motion rehabilitation robot product line falls under rehabilitation training equipment, mainly including products for active and passive upper and lower limb training, bedside active and passive training, and upper limb training.Currently, VISHEE's intelligent rehabilitation products have been fully integrated with the company's other core rehabilitation products such as magnetic stimulation and electrical stimulation, jointly building solutions for the construction of various rehabilitation sub-specialties including neurological rehabilitation, sports rehabilitation, critical care rehabilitation, and geriatric chronic disease rehabilitation. Going forward, the company will further reduce costs and iterate, improve the comprehensive and multi-dimensional channel system, and continuously enhance the scale of its core rehabilitation specialty business.# May I ask what are the main energy source devices for optical and electrical categories that your company can sell in 2024, and what is the development progress of other optical and electrical equipment in the next 5 years?A: In 2024, the company's energy-based devices for sale mainly include private electrotherapy, private magnetic therapy, private radiofrequency therapy, and body-shaping magnetic therapy. Among these, the private series products can meet various needs for women’s intimate youthfulness.Body-shaping magnetic products can meet the needs of body contouring and waist reduction, and the above products can be applied in maternal and child health care institutions, medical beauty institutions, etc.At the same time, the picosecond laser under research has functions such as tattoo removal and treatment of skin pigmentation diseases. It is mainly applied in dermatology, laser departments, medical aesthetics departments, and medical beauty institutions. The company is actively promoting the relevant registration process. Finally, radiofrequency anti-aging and radiofrequency lipolysis are also proceeding in an orderly manner.VISHEE was founded in 2001 and is mainly engaged inResearch, Development, Production and Sales of Medical Devices, with innovation as the driving force for development, continuously investing inElectrical Stimulation, Magnetic Stimulation, Electrophysiology, Rehabilitation Robots, Medical Aesthetic Energy-Based DevicesAdvanced technology research and development in various fields, while improving product layout. The company is committed to ushering in a new era of rehabilitation through pulsed magnetic technology and rehabilitation robots, aiming to become a leading supplier in the rehabilitation field in China. It also strives to be a global leader in the magnetic stimulation field.Comprehensive Layout of Picosecond Lasers, Radio Frequency (Intimate, Fat Dissolving, Anti-Aging), and Body Shaping Magnetics。In 2023, the company achieved a total operating revenue of 460 million yuan, an increase of 43.72% year-on-year; an operating profit of 150 million yuan, an increase of 42.27% year-on-year; a total profit of 150 million yuan, an increase of 41.89% year-on-year; a net profit attributable to the parent company's owners of 140 million yuan, an increase of 45.41% year-on-year; and a net profit attributable to the parent company's owners after deducting non-recurring gains and losses of 120 million yuan, an increase of 58.90% year-on-year.
Editor-in-Chief | Zhao Qing Reviewed by | Yi He
