Medical device giant Mindray sprint again | China stocks return | 'lifted ban'

On the morning of February 1, the reporter saw Li Xiting, chairman of Shenzhen Mindray Biomedical Electronics Co., Ltd., at the Mindray Building in Shenzhen. At the helm of China's largest medical device maker, she spoke highly of independent research and development National pride arises spontaneously.

At that time, he told Economic Observer that the IPO is going well.

However, on February 13, Mindray IPO terminated.

Reporter approached the Mindray people to verify the news is that Mindray this withdrawal of material is mainly due to the goodwill caused by mergers and acquisitions will soon be re-reported Entrepreneurship Board IPO.

Li Wenmei, the director of the medical giant with a revenue of 9 billion yuan, said in a recent interview with the reporter that the company will not give up the listing plan.

According to several sources close to the SFC, China stocks return A is not a stick killed, but required to meet the listing conditions and net profit reached more than one billion yuan.If the news is true to Mindray current operating data point of view, back to A The journey will not be hindered by the issue of medium stocks.

Li Xiting is an native of Anhui Province. He had an early vision of internationalization. He graduated from the Physics Department of China University of Science and Technology in physics at a low temperature and studied in France for three years.

After working in the medical equipment Whampoa Military Academy known as Anke period, Li Xiting met Cheng Minghe, Xu Hang, 1991, the three together to set up the sea under the business Mindray, and now the company is already China's largest medical equipment research and development manufacturing Manufacturers, products cover life information and support, clinical testing and reagents, digital ultrasound, radiography four areas.

In Mindray Venture early, for the first time to Beijing to participate in medical equipment Exhibition When they were able to afford to rent only half of their booths, Li Xiting and his partner were both sales clerks, technical engineers, etc. When the first order was received, several people were agitated to shake their hands and tear them off three times Just sign the contract.

From the view of Li Xiting on the 35th floor of Mindray's offices, the Shenzhen Science and Technology Park has a panoramic view. Today, Mindray's competitors are GE, Philips and other international manufacturers.

Li Xiting is still coming to the office every day to handle a lot of affairs and to keep a close eye on independent research and development.He is very generous in cost of research and development and spends more on technological innovation each year than the top 10 A-share listed companies in the same industry The total sum of research and development costs.After the listing of the US stock market and the delisting, Mindray still launched each year more than 10 models of new product speed, the average of each new product at least 10 patents in research and development, Li Xiting told reporters over the years, his Experience that independent research and development is enterprise Wheel of development.

Mindray is the largest medical device company in China with 39 subsidiaries in over 30 countries in North America, Europe, Asia, Africa and Latin America and 18 subsidiaries in China. Products and Resolutions have been applied worldwide In many countries and regions, the company's international market in 2016 accounted for 50% of sales.

From the financial data point of view, Mindray also surpassed most of the recent IPO companies.Data show that in 2014, 2015, 2016 operating income were 7.8 billion yuan, 8.0 billion yuan, 9 billion yuan, net profit was 1.36 billion Yuan, 910 million yuan, 17.34 billion yuan.

Li Xiting understand research and development, understand management, acquisitions are also very experienced.

After the listing, in addition to independent research and development, the use of capital for mergers and acquisitions to expand business lines.Since 2008, the company after nine domestic mergers and acquisitions, three cross-border mergers and acquisitions.

Li Xiting told reporters that the acquisition is mainly to supplement the channels, brand, technology and other areas of vacancies, many mergers and acquisitions to promote the company's development.

Taking Mindray's acquisition of Zonare, a US ultrasound diagnostic firm, for $ 105 million in June 2013 as an example, the company posted sales of approximately $ 64 million in 2012 but suffered a severe loss in real profit but ZONARE has reported a high-end ultrasound diagnostic system in the United States Ranked fifth, with excellent core imaging technology, Mindray take this into the high-end ultrasound market. Mindray after several years before and after the observation and negotiation time to complete the acquisition, Li Xiting praised the company during the interview very high Mindray also took two years to run after the acquisition, and the company is a key step in Mindray 's high - end ultrasound diagnostic market.

However, due to the large number of mergers and acquisitions, Mindray has a goodwill of RMB1.389 billion at the end of 2016. Goodwill refers to the difference between the amount of money paid for acquiring an enterprise and the net assets of the merged target, and the impairment risk of goodwill may be amortized Company profits.

According to the performance briefing, ST bus revenue in 2017 was only 606 million yuan, estimated total assets impairment provision of nearly 1.6 billion yuan, resulting in huge losses of the company.

A senior sponsor told reporters that Mindray's intangible assets accounted for more than the proportion of net assets required by the listing of small plates.

At the end of 2014, the end of 2015 and the end of 2016, the net assets of Mindray Shenzhen were 9.662 billion yuan, 6.538 billion yuan and 4.601 billion yuan respectively; the goodwill was 1.309 billion yuan, 1.134 billion yuan and 1.389 billion yuan respectively; and the intangible assets (including land use rights ) Respectively 1.181 billion yuan, 8.90 billion yuan, 839 million yuan.As of the end of 2016, the value of intangible assets was 839 million yuan, the book value of deducting land use rights was 343 million yuan, and the goodwill was 1.389 billion yuan, totaling 1.885 billion yuan, accounting for the end of 2016 41% of the net assets of 4.601 billion yuan.

According to investment bank sources, the CSRC's requirement on the ratio of intangible assets to net assets should not be too high. Paragraph 4 of Article 26 of the "Measures for the Administration of Initial Public Offering and Listing" revised in 2016 stipulates: 'The intangible assets at the end of the most recent period Net of land use rights, surface farming rights and mining rights, etc.) shall not exceed 20% of the net assets.

Mindray did not disclose the reasons for the termination of reporters.

Mindray Li Dongmei, director of Mindray told reporters that Mindray will not give up the listing plan, is currently temporarily adjusted.

This week, reporters approached Mindray to verify the news is that Mindray will soon re-apply for GEM IPO.

In the capital market journey, Mindray is a medium-sized company.

Mindray was listed on the NYSE in the US in September 2006. Mindray Medical announced the start of the privatization process on June 4, 2015. The three management companies submitted a non-binding proposal to the Board on the same day, Share price of 30 dollars from other shareholders to buy all the shares of the company's shares, the same day, Mindray Medical shares rose 10.92% to 30.47 US dollars / share, the highest increase since August 2012.

In March 2016, Mindray completed its privatization at a price of $ 3.3 billion and officially exited the New York Stock Exchange.

For the reason back to A, Li Xiting told reporters that the Chinese still have to go back to development, and firmly optimistic about the domestic capital market.

In February 2017, Mindray received IPO counseling and submitted materials in May to enter the IPO examination and approval process.

After reviewing the IPO acceleration in the second half of 2016, none of the top-class stocks have been listed through IPO. In particular, the IPO of three middle-class stocks in the opening year of 2018 is a fearsome move: Will the outstanding new shares be eliminated after the IPO is accelerated? Letter technology suspended the vote.

Mindray intends to withdraw from the US stock market at a time when the enthusiasm of the 'shell speculation' in the A-share market in 2015 is on the rise. For example, Focus Media's Backdoor Hedy Holdings and Giant's Cyber ​​Backdoor Century Cruise Ship etc. all these privatization returns to the backdoor listing Which aroused public opinion and questioned the privatization of its valuation of arbitrage between overseas markets and domestic markets.

In response to market doubts, Zhang Xiaojun, spokesman for the press release on May 6, 2016, said: "The CSRC is currently deepening the possible impact of such enterprises returning to A shares through IPO and M & A reorganization channels Research. 'This statement, the market is considered in the class stocks return to the A shares' pause key'.

Recently, the attitude of the IPO for almost stocks changed quietly, according to many people close to the SFC told reporters that China stocks return A is not a stick killed, in line with the listing conditions and net profit reached more than one billion yuan, there are still opportunities .

Although for Mindray, this threshold will not have an impact, but the 'billion' exam will become the other important part of the A share return to a major importance standard.