The 238 percent jump in sales costs were checked.

Recently, Dabo Medical issued an announcement, shenzhen stock exchange asked Dabo Medical to explain the specific reasons for the sharp increase in sales costs. according to the
Annual Report, Dabo Medical's sales expenses in 2019 were RMB410 million, up 238.86 percent from a year earlier.
it is understood that Dabo medical products mainly include trauma orthopaedic implant supplies, spinal orthopedic implant supplies, minimally invasive surgical products and neurosurgery implant supplies, including trauma and spinal supplies sales accounted for more than 84%.
Dabo Medical said in a statement that from 2017, orthopaedic implantsupplies two-vote system in Shaanxi Province (starting in 2017), Anhui Province (starting in 2018) and Fujian Province (starting in 2019) and other places gradually began to implement.
in the supply two-ticket system implementation area, the company mainly uses the distribution model, that is, the company directly to the distributor sales, and by third-party service providers to provide logistics assistance, academic training, surgery and other professional services.
in addition to the two-vote system implementation area, the company adopts the distribution model, that is, through the dealer to achieve sales, dealers to assume specific market development and technical service functions.
the two different sales models above, the company's product cost is no different, but the unit price of the sale is different.
distribution mode due to the dealer to undertake logistics assistance, surgery and other follow-up professional services, the distribution model of the factory price is lower.
the factory price (i.e. sales unit price) is higher, because in the distribution model, the company needs to hire third-party service providers to provide surgical, logistics assistance, academic training and other professional services, market development and technical service fees also increased significantly, reflected in the financial statements as the overall operating income, sales margin and sales costs increased significantly.
sales costs have skyrocketed, as have Dabo's healthcare sales. according to the
announcement, with the gradual implementation of the national two-ticket system, the number of customers of Dabo medical distributors has increased significantly and the sales scale has increased rapidly - the total sales value of the five customers in 2018 was 98.96 million yuan, compared with 163 million yuan in 2019, an increase of 65% year-on-year.
the longer return cycle, in addition to the significant increase in sales costs and sales, it is worth noting that Dabo Medical return cycle is also growing.
it is understood that at the end of 2019, Dabo Medical Accounts Receivable sbalance of 261 million yuan, bad debt provision of 0.23 billion yuan, accounts receivable this reporting period turnover days increased from 85.41 days in 2018 to 249.71 days, the current period recovery or return of bad debt provision amount of 23.386 million yuan.
"," dabo medical in the distribution model, the company to dealers for a shorter period of time, so accounts receivable is smaller.
distribution mode, the distributor to the hospital sales, hospital repayment cycle is longer, but because the hospital credit is better, although the return cycle is longer, but the quality of accounts receivable is better, the risk of bad debts is lower.
, as a result, with the orthopaedic implant supplies two-ticket system in some provinces gradually implemented, the company's sales model gradually from the distribution model to the distribution model to change, the 2019 distribution model of revenue ratio gradually increased, the company's overall customer credit account period has been lengthened, resulting in the company's 2019 distribution model of accounts receivable scale increased, accounts receivable turnover days increased accordingly.
from the same industry, according to the three friends medical prospectus, distribution mode, in the credit line procurement of customers, usually after the invoice 1-3 months to settle the purchase price, more than the quota can not continue to ship.
direct sales and distributor model, the company's downstream customers are hospitals or their distributors, their credit is good, but the internal payment process is complex, the repayment cycle is long.
for this feature, the company typically gives customers a credit period of 3 months to 1 year.
's orthopaedic prospectus also shows that under the distribution model, for some customers with good credit and larger size, the purchase price is usually closed within 1-3 months of invoicing.
distribution mode, the company and customers generally after confirming the use of distribution to collect the purchase price.
for customers with good credit and larger scale, considering that their terminal hospital repayment cycle is longer, the company appropriately gives customers credit period, usually after the confirmation of the actual consumption of the terminal hospital after 3-12 months or so to pay the purchase price.
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