Well-known machinery company announced the termination of cooperation with Johnson & Johnson

The company's announcement pointed out that the termination of the product business with Johnson & Johnson Medical will significantly reduce operating income and net profit.

Shanghai Taimei was established in November 2009 with a registered capital of 51,729,745 yuan.

Shanghai Taimei is a commerce and trade company.

2.

In recent years, the company’s business in the medical commerce sector has expanded rapidly.

In accordance with the company’s management policy of “adjusting structure, strengthening its main business, improving efficiency, and preventing risks”, it will further increase R&D investment, strengthen and optimize the core manufacturing industry, leverage Xinhua Medical’s brand advantages, and improve the company’s comprehensive gross interest rate.

It is reported that Shanghai Taimei is a commerce and trade company, and as the general agent of Johnson & Johnson medical-related products, inventory funds occupy a large amount.

From January to September in 2019 and 2020, the main operating data of Xinhua Medical and Shanghai Taimei (combined caliber)

as follows:

Shanghai Taimei’s operating income is mainly derived from Johnson & Johnson Medical’s agency business, which accounts for more than 90% of Shanghai Taimei’s operating income.

In 2019 and January-September 2020, Shanghai Taimei’s operating income accounted for 25.

3.

The company's external guarantee risk will be reduced.

As the general agent of Johnson & Johnson Medical-related products, Shanghai Taimei holds a large inventory.

The announcement pointed out that it will also help increase the proportion of the company's manufactured medical devices in the company's operating income and help increase the company's comprehensive gross profit margin.

Looking back on the time of cooperation between the two parties on April 24, 2019, Xinhua Medical and Johnson & Johnson Medical Equipment Co.
, Ltd.
of the United States reached a cooperation agreement on the agency sales of medical and health products.

It is reported that after the termination of the cooperation with Johnson & Johnson's medical business agency, other businesses of Shanghai Taimei will continue to operate.

Public information shows that Xinhua Medical entered the A-share market in 2002 and its main business includes four major sectors: medical equipment, pharmaceutical equipment, medical services, and medical commerce.
The 2020 mid-year report shows that the revenue of the four major business segments accounted for 36.
94%, 9.
75%, 7.
89% and 47.
60%, respectively, and the gross profit margin was 34.
53%, 20.
68%, 14.
42% and 13.
69%, respectively.