Advertisement
Mr. Li Xiting, Mindray's president and co-chief executive officer, openedthe event with an overview of 2007 and gave remarks on the company's strategygoing forward. Mr. Li emphasized accelerated sales growth in China year-to-date was largely achieved by winning tenders from increased governmentspending in rural areas. Mr. Li noted that the company expects to release anadditional six new products by the end of the year including the EX-55/65, BC-5300, BS-120, DC-3 and M-5. He also added that it is Mindray's goal toachieve a consolidated gross margin in the range of 55-56% for the full-year2007.
Advertisement
Mr. Xu Hang, Mindray's chairman and co-chief executive officer, followedwith his vision for 2008 and beyond. Mr. Xu said, "We will continue toleverage our leading market share position in patient monitoring devices, 3-part and 5-part hematology analyzers and ultrasound imaging systems to expandmarket share both in China and abroad."
Reflecting Mindray's expanding product offerings, Mr Xu noted that thecompany has changed the names of its three core product segments as follows:
-- Patient Monitoring Devices to Patient Monitoring & Life Support Devices
This name change reflects the company's objective to expand intodefibrillators, surgical beds and operating room lighting products in aneffort to create total-solution product offerings combining patient monitoringand life support devices as well as cross-selling opportunities.
-- Diagnostic Laboratory Instruments to In-Vitro Diagnostic Business
This name change reflects Mindray's initiative to expand beyond hematologyand biochemistry analyzers into immunoassay and reagent products.
-- Ultrasound Imaging Systems to Diagnostic Imaging Systems
This name change reflects the company's plan to develop new product linessuch as digital radiography, which it plans to release in the first quarter2008, and other future imaging products.
Mr. Xu stated that it is the company's goal to grow overall revenue by atleast 40% in 2008 with domestic sales growing 30% and international salesgrowing 50%. Mr. Xu added that the company has established a strategicdevelopment department, which will help evaluate potential M&A opportunitiesto supplement its organic growth.
During the event, Mindray management also covered the following areas:
Ms. Joyce Hsu, Mindray's chief financial officer, provided financialhighlights and reiterated the company's commitment to investing approximately10% of revenues in R&D. Ms. Hsu noted that Mindray's strong operating cashflow will fund the company's increased capital expenditure plans for theremainder of 2007 and 2008. Ms. Hsu also mentioned that a newly-expandedproduct portfolio will help the patient monitoring & life support devicessegment to grow at a faster rate in the future compared to the time periodfrom 2003 to 2006.
Ms. Hsu also highlighted the following future financial trends andobjectives:
Mr. Weng Lee, Mindray's vice president of US-based research anddevelopment, commented on Mindray's 2008 new product pipeline. Mr. Weng notedthat the company plans to launch 10 new products, including an iPM patientmonitoring device, two in-vitro diagnostic laboratory instruments, two blackand white and three color ultrasound imaging and two digital radiology imagingsystems. In addition, 23 reagents will be introduced to complement thecompany's to-be-launched in-vitro diagnostic devices.
Mr. Weng also noted that the company will apply for FDA 510(k) clearancefor both its Beneview T5 and T8, PM-7000
