Jiuan Medical (002432.SZ) has released a share repurchase plan, intending to repurchase company stocks with a market value of no less than 50 million and no more than 100 million yuan at a price not exceeding 11.00 yuan per share, for the implementation of equity incentives or employee stock ownership plans. In an interview with Cailianshe reporters, a company official said that the new "O+O" model of diabetes diagnosis and treatment and the launch of extremely cost-effective explosive products on new retail platforms are the company's two core development strategies. The company is firmly optimistic about the development prospects of the above strategies. The launch of share repurchases at this time can lock in the cost of equity incentives, better attract and retain talents, and improve the company's core competitiveness.

In 2020, Jiuan Medical benefited from the epidemic and its retail channel advantages, and the company's sales of epidemic prevention items such as forehead thermometers and blood oximeters surged. However, as the global epidemic stabilized this year and its Internet + medical strategy accelerated its expansion, resulting in increased expenses, the company's 2021 semi-annual performance forecast announced recently showed that it expects a net profit of 40-60 million yuan during the reporting period, a year-on-year decrease of -84.47% to -76.71%.

Relevant people from Jiuan Medical said that the company's Internet + medical strategy is mainly to launch a new "O+O" model for diabetes diagnosis and treatment. At present, the model has covered cities such as Tianjin, Beijing, Shanghai, Guangzhou, etc., and cooperated with professional medical institutions such as Peking Union Medical College Hospital to set up diabetes joint care clinics, and in the United States it has extended from diabetes to hypertension. As of the end of the first half of 2021, the company has expanded the model to nearly 120 hospitals in more than 40 cities. According to the company's non-public offering plan, the company plans to establish more than 600 care clinics in 47 cities in China within 4 years to manage 1 million patients.

The company's secretary Wu Tong said that the company's diabetes care model is still in the stage of accumulating users in China and has not been fully paid. At present, the company's new "O+O" model of diabetes diagnosis and care has already had a small amount of service fee income in China. For example, there are charging projects in Shenzhen and Jiangsu, and it will take some time to scale up.

As my country has successively introduced policies to support the Internet + medical field, the work of incorporating Internet + medical services into the scope of medical insurance reimbursement is gradually advancing, and the US medical insurance has also clarified the payment method. In addition, blood sugar smart hardware is the hardware foundation of the new "O+O" model of diabetes diagnosis and treatment. With the advancement of this core strategy, the sales of blood sugar products will also increase further.

The company's 2020 annual report disclosed that, based on the "Three One Care" case jointly conducted by Zhu Xianyi Memorial Hospital of Tianjin Medical University and the company, the annual blood sugar compliance rate of patients in the "Three One Care" group has increased significantly to , and three months after the patients joined the "Three One Care", the treatment effect was far better than that of the conventional management group. The "Three One Care" diabetes management and treatment service jointly conducted by Zhu Xianyi Memorial Hospital of Tianjin Medical University and the company was selected as one of the 33 cases of national health promotion by the National Health Commission, and was selected as the smart service category of the 2020 Tianjin "Internet + Medical Health" demonstration project.

According to the survey of iiMedia Research, the market size of the supply side of Internet medical post-diagnosis reached 30.98 billion yuan in 2019, and the market size of the demand side reached 283.96 billion yuan. There is an obvious imbalance between supply and demand in the Internet medical industry. Overall, with the overall environment and policy of Internet medical care becoming increasingly clear, the supply side of Internet medical care is expected to increase to about 1/4 of the demand by 2022.

The company has rich retail channels. Its products are not only sold in the domestic Xiaomi channel, but also continuously launched new products on the US new retail platform and Amazon platform, and continued to launch popular products. In addition to the iHealth series of products, in the fourth quarter of 2020, the company successively launched ultra-thin body fat scales, smart watches with blood oxygen detection and exercise monitoring, 40db deep noise reduction and active noise reduction headphones, deep cleaning sweeping robots, and released ear thermometers on the Xiaomi platform. The above products have achieved good sales results.

Relevant company personnel said that the repurchased shares can be held for 36 months. Before the incentive grantees are determined, they will exist in the form of treasury shares, which can be used as an effective measure for the company to attract talents during this period.