On April 21, 2023, DIRUI (stock code: 300396) held its 2022 and Q1 2023 performance briefing at the Hotel Kapok Shenzhen Bay. Several key leaders from CR Healthcare and DIRUI attended the meeting, including Song Qing, who serves as the Chairman of both companies, and Carl Qin, the General Manager of CR Capital Management and a Director of DIRUI. Also in attendance were Ni Bing, who holds the positions of Managing Director of the CR Healthcare Fund of Funds and Chairman of the Supervisory Board of DIRUI, and Wang Xuemin, the General Manager of DIRUI. Additionally, DIRUI's management team members were present at the meeting.
Chairman Song Qing delivered the opening and closing speeches and interacted with investors. He highlighted DIRUI's ambitious plan to become a leader in IVD by the end of the 14th Five-Year Plan period. He emphasized the importance of collaboration and joint efforts from all stakeholders to achieve this objective.
During a discussion with institutional investors, DIRUI director Carl Qin unveiled the strategic vision behind China Resources' acquisition of DIRUI.
Wang Xuemin, DIRUI's Director and General Manager, briefed investors on the company's production and business performance in 2022. Moreover, he had extensive and insightful conversations with investors on several topics of interest to them, including DIRUI's academic building, capacity planning, expansion in Chinese and global markets, and industrial synergy with China Resources.
Ni Bing, Chairman of DIRUI's Board of Supervisors, revealed the company's plans to expand its business scale and accelerate its development through M&A. DIRUI pursues an external expansion strategy by focusing on horizontal M&A that aligns with its existing product lines and vertical M&A that facilitates business growth. In addition, the company is interested in relevant targets in the medical device industry. DIRUI remains committed to a prudent and risk-controlled approach in its pursuit of M&A projects. The progress of an M&A project may be uncertain. Therefore, it is recommended to refer to company announcements for accurate updates.
In 2022, DIRUI achieved the milestones of the 14th Five-Year strategic plan in infrastructure development, market-oriented transformation, operational improvement, and value transformation of functional units. Last year also marked DIRUI's first full fiscal year since partnering with CR Capital Management.
DIRUI's revenue in 2022 rose to RMB 1.22 billion, a significant increase of 34.69% year-on-year. There was also an increase in net profit attributable to shareholders of the listed company, rising to RMB 261 million, up 24.66% from the same period last year.
In Q1 2023, DIRUI's revenue surged to RMB 331 million, representing an impressive year-on-year growth of 46.54%. The company's net profit attributable to shareholders reached RMB 77 million, an increase of 27.79% from the same period last year.
Song Qing, Chairman of CR Health and DIRUI, pointed out, "The 14th Five-Year strategy is undergoing a mid-term review. To achieve corporate objectives, DIRUI is committed to executing a strategy that focuses on both endogenous growth and external expansion. To drive endogenous growth, we must shift our focus from R&D to sales and optimize our sales system, while enhancing our channel management capabilities. It is also crucial for us to fully adopt China Resources Group's management and benchmarking systems for business development. In addition, we have made progress in our external expansion strategy by securing a number of project reserves. We are stepping up the implementation of these projects. Our board of directors and management team will collaborate closely to ramp up our reform efforts and achieve exponential growth as quickly as possible."
Carl Qin stated, "DIRUI is a classic case of investment by the China Resources Industrial Fund. Guided by the national strategy, China Resources conducted a thorough analysis of our strengths, market capacity, industry trends, and competitive landscape before determining that investing in DIRUI was the optimal choice. By empowering our management and business and ensuring strong synergies between the two during the post-investment management process, we have achieved excellent performance and market value."
Post-investment management by China Resources is a critical area of concern for investors. Ni Bing, Managing Director of the CR Healthcare Fund of Funds, highlighted three key efforts made by CR Capital Management and CR Healthcare in post-investment management. He explained, "First, we have deepened the reform of our management departments, including the restructuring of our performance assessment and sales system and the improvement of our management concepts. Second, we have enhanced the industrial synergy between DIRUI and China Resources, thus achieving excellent results in both medical services and distribution. As the synergy has gradually deepened in all aspects, we have also facilitated the integration of finance and industry using financial means. Third, we have boosted our external expansion. The highly fragmented IVD industry is moving towards industry consolidation. Over the past few years, we have stockpiled a large number of projects. We are looking forward to driving their execution as quickly as possible."
Our development blueprint is set, with distinct goals to accomplish. We are ready to embrace a brighter future.
In 2023, DIRUI will focus on improving its governance, production efficiency, and customer service responsiveness to accelerate its external expansion. Guided by the 14th Five-Year strategy, DIRUI is all set to expedite its development in the international market. To ensure the early achievement of the strategic goals set forth in the 14th Five-Year Plan, DIRUI will focus on enhancing the motivation and efficiency of its management and core technical teams, while optimizing its performance evaluation system.
