A Leading Enterprise of Medical Dressings in China Reported An Annual Revenue of 1.6 Billion
- Chaileedo Press
- Jun 24, 2022
- 3 min read
On the 23rd of June, Beijing time, the latest prospectus introduced by Voolga showed that its revenue in 2021 was 1.6 billion yuan (about 246 million US dollars), a year-on-year increase of 4.08%. Its net profit was 120 million US dollars, a year-on-year increase of 24.38%.
On June 23, Beijing time, CHAILEEDO observed that Harbin Fuerjia Technology Co., Ltd. (hereinafter referred to as "Voolga") responded to the second round of inquiries from the Shenzhen Stock Exchange and released the latest prospectus.
According to the official website, Voolga was established in 2017 and is mainly occupied in the research and development, production, and sales of professional skin care products. Its main products include the "Voolga" brand and its sub-brands "Voolga 1 Beauty" and "Voolga Flower Season". The product category features medical device dressing products and functional skin care products. It focuses on dressings, patches, and film products, and has introduced other forms of products such as liquid, essence and lotion, spray, and freeze-dried powder.
According to Frost & Sullivan's analysis report, in 2020, the sales of Voolga patch products ranked first in the Chinese market of professional patch skin care products, accounting for 21.3%; among those products, medical device dressing products accounted for 25.9%, ranking first in the Chinese market; functional skin care products and patch or film products accounted for 16.6%, ranking second in the Chinese market.
From the facet of profitability, the prospectus showed that in 2021, Voolga's operating income was 246 million US dollars, a year-on-year increase of 4.08%; net profit was 120 million US dollars, a year-on-year increase of 24.38%; non-returned net profit was 116 million US dollars, a year-on-year increase of 62.29%; gross profit rate reached 81.95%. It is not difficult to see that Voolga performed very well in terms of net profit and gross profit rate in 2021.
From January to March 2022, Voolga got revenue of 52.8507 million US dollars, an increase of 1.99% over the same period in 2021; the net profit of the parent company was 24.1316 million US dollars, a decrease of 6.58% over the same period in 2021. Voolga said that it is mainly because the company focused on online sales in this period, which led to an increase in service fees of platform promotion and new media marketing and other publicity and promotion fees, and increased investment in research and development in this period at the same time.
From the facet of product categories, Voolga now has a total number of 49 products, including 4 medical device products and 45 cosmetic products. Although there are only 4 types of medical device products, speaking of revenue, such products are still the main source of revenue for Voolga, accounting for more than half of the total revenue.
These 4 kinds of medical device products are "Medical Sodium Hyaluronate Repair Patch (White Film)", "Medical Sodium Hyaluronate Repair Patch (Black Film)", "Medical Sodium Hyaluronate Repair Lotion (Disposable)", "Medical Sodium Hyaluronate Repair Lotion (Spray)". All of them are suitable for mild to moderate acne and can help heal injuries and repair one's skin. They have an adjuvant therapeutic effect on acne recovery, skin allergies and early post-laser pigmentation, and reduction of the formation of epileptic scars.
Among them, "Medical Sodium Hyaluronate Repair Patch (White Film)" is the product with the highest sales in the Tmall official flagship store of Voolga, with monthly sales of over a hundred thousand, and the price is 6 US dollars for 2 pieces. It ranked first in the Tmall praising list of medical dressings.
According to the prospectus, Voolga's main products are composed of two categories: medical devices and cosmetics. From 2019 to 2021, the operating income of Voolga medical device products was 137.0561 million US dollars, 131.4309 million US dollars and 138.5385 million US dollars, accounting for 68.38%, 55.54% and 56.25% respectively.
Besides, benefiting from years of comprehensive operating experience accumulated in the field of medical device dressing products and a deep understanding of the market of professional skin care products, the revenue of Voolga cosmetics products also presented a trend of rapid growth. From 2019 to 2021, the revenue of cosmetics was 63.3741 million US dollars, 105.2121 million US dollars and 107.7549 million US dollars respectively.
It is reported that this round of Voolga’s IPO raised 283 million US dollars, of which 132 million US dollars was used for brand marketing and promotion, 98 million US dollars was used for constructing production bases, 45 million US dollars was used to supplement circulating funds, and 8.5079 million US dollars was used for research and development and the construction of quality inspection center.
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