Meiya Optoelectronic Reports RMB 260 Million Revenue from Dental CT in 2017, Marking Sixth Consecutive Year of Growth and Advancing Digital Transformation

Meyer Optoelectronic's High-End Dental CBCT Product Series

VCBeat (WeChat: vcbeat) has learned that on April 11, Meyer Optoelectronic, a leading domestic provider of photoelectric identification products and services, released its 2017 annual report.

During the reporting period, the Company achieved operating revenue of RMB 1.094 billion, a year-on-year increase of 21.39%; realized net profit attributable to shareholders of the listed company of RMB 365 million, a year-on-year increase of 17.89%; and realized net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses of RMB 325 million, a year-on-year increase of 22.88%.

Among them, in 2017, the companyDental CT generated revenue of RMB 260 million,The proportion of total revenue increased significantly from 18.35% in 2016 to 23.78% in 2017. Meyer Optoelectronic has established a global marketing network, with its products and services covering all provinces, municipalities, and regions across China, while providing high-quality optoelectronic identification solutions to nearly 100 countries in Southeast Asia, Central Asia, the Middle East, North America, South America, Western Europe, Eastern Europe, Africa, and other regions.

Meyer Optoelectronic focuses on three core sectors: agricultural product inspection, industrial inspection, and medical imaging. These three sectors develop synergistically, with the company concentrating on the product development and application of photoelectric identification technologies in these areas, as well as expanding its marketing scale. Meanwhile, the company is increasingly allocating resources to the medical sector, aiming to rapidly enhance its R&D capabilities, sales volume, and market share in this field, thereby accelerating the localization of high-end medical imaging equipment.

The medical imaging business is experiencing rapid growth and holds significant potential, making it a key focus area for the company’s current development. After more than six years of development, the company has established a comprehensive product portfolio of dental X-ray CT diagnostic systems, including models with medium, medium-to-large, and ultra-large fields of view (FOV), thereby meeting customers’ diverse needs. Notably, its ultra-large FOV CBCT system offers an effective scanning FOV of up to 23×18 cm, setting a new industry benchmark and fulfilling the clinical diagnostic and treatment requirements for general dentistry and maxillofacial care.

The company's dental cone-beam computed tomography (CBCT) scanner effectively addresses issues such as image overlap and distortion associated with traditional dental X-ray equipment, including intraoral periapical units and digital panoramic machines. It is widely applicable in various clinical settings, such as dental implant placement, extraction of impacted teeth, and diagnosis of complex endodontic and periodontal diseases, thereby enhancing the standard of diagnosis and treatment for oral conditions.

During the reporting period, the Company’s new generation of ultra-wide field-of-view dental X-ray CT diagnostic systems successfully obtained registration certification from the China Food and Drug Administration (CFDA), includingZhencai Intraoral Scanner, the development of the MUSEY chairside restoration system, featuring professional CAD design and CAM machining capabilities, has also made positive progress, which will further enrich the company’s product portfolio in the field of dental imaging.

The Muse Chairside Restoration System represents a significant step in the company's digital transformation.Seamlessly Compatible with the Full Range of Digital Dental Products, features a comprehensive library of personalized tooth morphologies while reducing software licensing costs for dental clinics.

In 2017, the company’s dental CT generated RMB 260 million in revenue, with its share of total revenue rising significantly from 18.35% in 2016 to 23.78% in 2017. This segment has recorded six consecutive years of growth in its revenue contribution, achieving a compound annual growth rate (CAGR) of over 85% in the past four years, and is expected to maintain strong momentum in the coming years. The medical CT business has gradually become a key growth driver making substantial contributions to the company’s performance.

Notably, the company’s new large-field-of-view dental CBCT, launched in September 2017, has already achieved sales at Grade IIIA hospitals such as the Stomatological Hospital of Xi’an Jiaotong University.Gained entry into the critical public hospital market, laying the foundation for future growth targets.

The high-end medical device industry is characterized by high investment, long development cycles, and capital- and talent-intensive operations. As a typical high-tech sector involving multidisciplinary integration, it delivers substantial social value and economic benefits.

After years of development, China’s high-end medical device industry has achieved remarkable success, yet it still faces numerous challenges: a large industrial scale but weak foundational capabilities, low market concentration, fierce competition in the low-end segment, reliance on imports for high-end products, and a lack of leading enterprises with new product innovation capabilities, rapid market expansion abilities, and international influence.

In recent years, driven by factors such as population aging, upgrading of consumer demand, import substitution, and strong government policy support, domestic medical device enterprises have ushered in favorable opportunities for development.

In the field of high-end medical devices, the state has gradually introduced relevant policies to guide and encourage domestic medical institutions to use Chinese-made medical devices, providing favorable development opportunities for local medical device enterprises.

The company’s independently developed series of dental X-ray CT diagnostic systems has successfully broken the monopoly held by foreign products in the high-end medical device sector, filled a domestic gap, and established the company as one of the few Chinese enterprises capable of competing with imported international brands.

The report indicates that the gross profit margin for dental CT slightly increased. In 2017, the company's dental CT gross profit margin was 57.96%, an increase of 1 percentage point compared to 2016. The main reasons were the optimization of the product structure (with new products accounting for a higher proportion in Q4 2017) and the optimization of the company's cost side (including components and production process improvements).

Meanwhile, the company organized a “6th Anniversary” group-buying campaign in April this year. Sales were particularly strong for the medium-to-large field-of-view CBCT, indicating that the company’s products are gaining market penetration and that the replacement of older models is proceeding smoothly.

The company is also actively expanding into other specialty areas and will sequentially launch a series of high-end medical imaging products for departments such as otolaryngology and orthopedics in the future.