Yirui Technology (688301) issued a prospectus for the issuance of A-shares to specific targets in 2024, with a total planned amount of funds raised not exceeding 1.45 billion yuan, which will be mainly used for the construction of X-ray vacuum devices and comprehensive solutions. The total investment of the project is 1.563 billion yuan, and the construction period is 36 months. In addition, after the above-mentioned fundraising projects are put into production, the company will add 77,000 tubes and 19,300 sets of X-ray integrated solution capacity.

According to the prospectus, Yirui Technology is a leading enterprise of X-ray detectors in China, and the sales revenue of digital X-ray detectors accounts for more than 9% of its total operating income; According to the sales area, its overseas market revenue accounts for nearly 4%. More importantly, after more than ten years of technology accumulation, in the international market, the company has gradually formed a leading edge, and relies on independent research and development to finally achieve import substitution.

It should be noted that the global digital X-ray detector market supply is relatively concentrated, with foreign giants mainly including Varex and Trixell, and Chinese companies including Yirui Technology and Kangzhong Medical. According to IHS Market statistics, in the medical field, the world's top five detector manufacturers have a combined market share of more than 50.00%. According to Signify Research statistics, in 2020, the market shares of Varex, Trixll, and Yirui Technology were 18.00%, 16.00%, and 13.00%, respectively.

Judging from the data, there is not much difference in the market share of Yirui Technology and overseas leading manufacturers such as Varex, and there is a possibility of catching up.

In September 2020, Yirui Technology successfully landed on the Science and Technology Innovation Board, with the original plan to raise 770 million yuan, but the actual net amount of funds raised was 1.986 billion yuan.

According to the financial report data, from 2021 to 2023 and the first half of 2024, Yirui Technology's operating income will be 1.187 billion yuan, 1.549 billion yuan, 1.864 billion yuan, and 1.026 billion yuan respectively, an increase of 51.43%, 30.47%, 20.31%, and 7.20% year-on-year respectively, and the net profit attributable to the parent company after deducting non-recurring gains and losses will be 341 million yuan, 517 million yuan, 591 million yuan, and 335 million yuan respectively, an increase of 72.29% year-on-year 、51.18%、14.43%、-3.05%。

Judging from the data, in the first half of 2024, the net profit attributable to the parent company after deducting non-recurring gains and losses of Yirui Technology has declined, but the main reason for the decline in profits is the impact of equity incentive expenses. If the equity incentive expense of 47.81 million yuan is excluded, the net profit attributable to shareholders of the parent company will be 383 million yuan, an increase of 6.03% over the same period last year.

It should be pointed out that there is still a certain gap between the scale of Yirui Technology's operating income and Varex, but its profitability has surpassed that of Varex. According to Choice data, in the first half of fiscal year 2024, Varex's operating income was US$396 million, and the net profit attributable to shareholders of the parent company was only US$900,000, which was significantly lower than that of Yirui Technology.

In fact, after the successful IPO, Yirui Technology also issued a convertible bond, raising a total of 1.421 billion yuan, of which 979 million yuan was used for the industrialization project of new detectors and scintillator materials, and 442 million yuan was used for the key technology research and development and innovation base project of digital X-ray detector.

After the completion of the project construction, Yirui Technology will add 32,000 CMOS flat panel detectors, 100,000 COMS intraoral detectors, 2,000 CT porcelain and 9,900kg of new scintillator material production capacity.

From the above three financings, it is not difficult to see that in order to seize market share, Yirui Technology continues to expand production capacity, with the completion of the construction of fund-raising projects and the continuous release of production capacity, the gap between the company and overseas manufacturers in market share is narrowing.