The first batch of domestic intelligent hardware, Lexin Medical , ushered in a downward turning point in performance after 8 months of listing. According to the performance forecast, Lexin Medical expects a net profit loss of RMB 13 million to RMB 18 million in the first half of this year. The company achieved a net profit of nearly RMB 36 million in the same period last year. In fact, Lexin Medical's profit in the first quarter of this year has declined. The data shows that the company achieved revenue of 172 million yuan in the first quarter of this year, a year-on-year increase of nearly 10%; net profit was only 9.83 million yuan, down about 38% year-on-year. If the non-recurring gains and losses are deducted, the reduction will increase by about 24 percentage points. According to public information, Lexin Medical was established in 2002, specializing in the research and production of home medical and health electronic products, and the research and development and operation of the intelligent health cloud platform. The company's main products include electronic health scales, fat measuring instruments, wearable sports bracelets and electronic blood pressure monitors and other home medical health electronic products. Lexin Medical has maintained relatively stable growth in recent years. The 2016 financial report shows that the company achieved nearly 771 million yuan in revenue last year, which was more than 20% year-on-year; net profit was about 81 million yuan, a year-on-year increase. Sixty percent. It is worth noting that Lexin Medical's main income comes from overseas businesses mainly based on developed countries such as Europe, America, Japan and Korea. From 2013 to 2016, the export revenue accounted for 91.51%, 91.50%, 66.27%, and 57.76% of the company's revenue. The export business is based on the ODM (Original Design Manufacturer) model. ODM is a model for OEM production. In simple terms, it is through the development of design products, after obtaining customer approval, according to the order quantity. The ODM business of Lexin Medical is mainly based on medical and health electronic products. It is a partner of well-known brands such as Braun, Weilun and Philips. In recent years, the proportion of export sales has been declining, but it has basically maintained a steady growth trend. However, this model also carries certain risks. In the prospectus, Lexin Medical stated that once the company is unable to maintain its technological leadership or is overtaken by competitors, the company's ODM orders may be robbed by competitors. In addition, if the customer replaces the ODM purchase with self-production, this will have an adverse impact on the company's operating results. At the same time, OMD's profitability is not high. Last year, the gross profit margin of the company's export revenue was 31.97%, which was lower than the domestic gross profit margin by 2.5 percentage points, and its growth capacity was far less than domestic sales. At present, most high-end equipment with high profits are controlled by foreign-funded enterprises, and domestic enterprises still have a long way to go. The income model of Lexin Medical's export-oriented is also facing the challenges of exchange rate fluctuations and rising costs. This year, the company appropriately lowered the settlement price of the same-sales OEM customers. In previous years, such price reductions were mainly digested by material cost reduction and substitution. Last year, the cost of these direct materials accounted for more than 80% of the company's operating costs. However, Lexin Medical's raw materials, including packaging materials, glass, and hardware, have seen a significant increase in prices this year, which has led to a decline in the gross profit margin of the company's export business, which has had a major impact on the company's performance. In the future, if the company can not effectively resolve the adverse effects of the decline in gross profit margin caused by rising raw material prices, it will greatly restrict the company's profitability. Seeds,Palay Seeds,Hybrid Palay Seeds,Palay Seeds Variety XIKE AGRICULTURAL GROUP CO . .LTD. , https://www.laoseed.com