Mindray Medical: The company's recruitment is normal personnel expansion conducted based on business development needs

Securities Star News: Mindray Medical (300760) responded to investor questions on the investor relations platform on March 10.

Investor: I see your company’s official website is recruiting on a large scale. Is this due to sales performance falling short of expectations, or are there other considerations?

Mindray Medical Secretary: Hello, our recruitment is based on business development needs and is a normal expansion of staff. Currently, it is spring recruitment season, welcome to follow. Thank you.

Investor: Hello, Secretary. According to the H-share prospectus, the inventory turnover days for Mindray Medical in 2022, 2023, 2024, and the first half of 2025 are 127.9 days, 126.2 days, 128.8 days, and 156.3 days respectively, indicating relatively stable inventory levels. Could you please explain the main factors behind the inventory reduction starting from Q3 2025? Will there be any adjustments to future inventory management strategies?

Mindray Medical Secretary: Hello, thank you for your attention. The company’s marketing department regularly forecasts sales based on market demand changes and sales targets. The production and supply departments develop feasible production plans based on sales forecasts, customer orders, and inventory levels. Additionally, we produce a certain amount of general semi-finished products or standard-configured finished goods as inventory to ensure quick production of customer-required products when orders suddenly increase, thereby shortening delivery cycles. For specific inventory amounts, please refer to the company’s periodic reports. Thank you.

Investor: 1. When will the company’s domestic revenue decline bottom out, and what are the growth rate and potential over the next three to five years after the bottom? 2. How does the company predict in Q1 that Q3 will be a turning point? 3. The total revenue minus the revenue from the three main segments has increased year by year, reaching a relatively objective level in the first three quarters. What is this part, and what are the profit level and growth prospects? 4. From the total figures of the first three quarters, the company’s overseas revenue increased by 7.57% year-over-year, but the growth rate has slowed in recent years. What are the main difficulties and problems faced in achieving growth, and how are they being addressed?

Mindray Medical Secretary: Hello, thank you for your attention. Due to multiple factors, the market capacity of various business lines in China’s domestic market has shrunk to different degrees over the past two years. Although our market share continues to steadily increase, it inevitably has a negative impact on domestic operations. However, we believe this impact is temporary for Mindray. First, domestic medical institutions are urgently seeking to improve quality and efficiency, control costs, and reduce expenses, which provides a historic opportunity for us to accelerate breakthroughs in high-end tertiary hospitals and import substitution. Among these, the IVD market, where imported brands still hold a major share, is undoubtedly the biggest opportunity. As our IVD products become more competitive and the number of projects increases, we are confident of doubling our market share in chemistry, biochemistry, and coagulation fields within three years. Second, our unique digital and intelligent solutions can better help hospitals improve operational efficiency and reduce costs, while also significantly increasing our win rate in the current fierce market competition, avoiding disorderly price competition. In the long term, besides the significant room for market share growth in IVD, our minimally invasive surgery and minimally invasive intervention consumables currently have negligible market share, but these two segments’ combined market capacity exceeds that of IVD. With increasing surgical volume and penetration, there is still great growth potential in the industry. As the volume of minimally invasive surgeries and interventions gradually increases, the long-term growth and resilience of domestic business are expected to improve. Therefore, overall, we expect domestic business to achieve positive growth in 2026, led by IVD and emerging segments, which will see rapid growth. Additionally, as customer and product structures move towards higher-end and more streamlined offerings, the growth rate of domestic business in 2027 and beyond is expected to accelerate, maintaining stable profitability. The above does not constitute a performance guarantee; markets carry risks, and investments should be cautious. Thank you.

The above content is compiled from publicly available information by Securities Star, generated by AI algorithms (Wangxin Calculation Backup 310104345710301240019), and does not constitute investment advice.