On April 25, Hexin Instrument (688622.SH) released the 2023 annual report, the company’s operating income during the reporting period was 366 million yuan, an increase of 30.66%; The net loss attributable to the shareholders of the listed company was 96.1061 million yuan, and the loss increased; Net loss attributable to shareholders of listed companies net loss of 111 million yuan after deducting non-recurring gains and losses, losses increased; Basic loss per share 1.37 yuan/share.

Photo source: Hexin Instrument 2023 annual report

EDS460-D-1 The reasons for the changes in the company’s operating income during the reporting period are as follows: 1) During the reporting period, the bidding and bidding process in the field of environmental monitoring was carried out normally, and the newly signed projects in 2023, the normal implementation projects in 2022 and the deferred implementation and acceptance projects in 2022 were all gradually implemented, accepted and recognized during the reporting period, and the operating income increased year-on-year. 2) The company’s laboratory and other new areas of business development is smooth, and the revenue of new business areas has increased year-on-year.

The reasons for the change in net profit attributable to shareholders of listed companies in the reporting period are as follows: 1) The comprehensive gross profit margin decreased during the reporting period, including the price of some products decreased and the input of service cost increased as the company’s competitors gradually entered the market in the field of environmental monitoring; The laboratory and medical fields of the company are important growth points of long-term performance in the future. During the reporting period, the products are still in the stage of vigorous promotion and market grab, and the cost cannot be reduced through mass production for the time being. However, with the increase in the sales and production quantity of laboratory and medical products, the production cost will gradually decrease. 2) Administrative expenses and selling expenses increased compared with the same period last year, mainly including: the company optimized organization and streamlined personnel to pay economic compensation increased; With the increase of the number of instruments sold, the provision of quality assurance expenses will increase accordingly; 3) The Company actively carried out market promotion in new and old business areas. During the current period, the number of instruments borrowed for trial promotion increased and the borrowing time increased, and the reserve for inventory decline increased accordingly; 4) During the reporting period, the operating income increased, part of the sales collection was delayed, the balance of receivables increased, and the credit impairment loss accrued increased accordingly; 5) During the reporting period, the amount of government subsidy projects that passed the acceptance was transferred to other income decreased year-on-year.

EDS460-D-1

During the reporting period, the company’s products and services continued to deepen their traditional advantages in the field of environmental monitoring, laying the foundation for the company to form a stable business income. At the same time, in order to gradually get rid of the short-term goal of dependence on government procurement in the field of environmental testing, and realize the long-term development strategic goal of comprehensive domestic substitution of high-end scientific instruments, the company continues to make technological breakthroughs and product layout in new business areas such as medical treatment and laboratory, constantly promote the marketing and industrial application of new products, and continuously enrich the product types. It brings a new revenue growth point for the company.

EDS460-D-1 During the reporting period, the company launched several new products, such as the high-resolution quadrupole time-of-flight LC-QTOF 7000 and the automatic nucleic acid mass spectrometry detection system NucMass 3000, which continuously enriched the product line, broadened the product application scenarios, met the various needs of customers, and established a certain market recognition. At the same time, due to the large investment in research and development, it has an impact on the company’s overall operating performance, but the company has basically achieved full coverage of technical routes, product lines have been basically complete, and the proportion of subsequent research and development investment is expected to gradually reduce, which will effectively improve the company’s operating performance.

Hexin Instrument is a key high-tech enterprise of the National Torch Plan integrating research and development, production, sales and technical services of mass spectrometers, mainly providing customers with mass spectrometers and related technical services. The company focuses on the independent research and development, localization and industrialization of mass spectrometers, masters the core technology of mass spectrometry and has advanced process assembly capabilities, and is one of the few enterprises with independent research and development capabilities in the field of mass spectrometers in China.