The prospectus for the review of Shenzhen Jiahong Dental's resumption of listing has revealed that the data has aroused concern.
Why does a denture cost hundreds of yuan to implant tens of thousands of dollars at every turn?
A denture costs one hundred yuan, but planting a tooth can easily cost thousands or even tens of thousands yuan. Is there any way to do it?
The prospectus of Jiahong Dental, which is preparing to sprint for the A-share IPO, revealed the secret.
Recently, due to the completion of the financial information update, the Shenzhen Stock Exchange resumed the review of the issuance and listing of Shenzhen Jiahong Dental Medical Co., Ltd., and the company responded to issues such as related transactions.
All-ceramic gross profit margin is around 60%
On April 1, Jiahong Dental was suspended by the Shenzhen Stock Exchange for its issuance and listing review because the financial information recorded in the IPO application documents had expired.
Jiahong Dental was established in 2001. From 2012 to 2013, the company successively acquired 100% of the shares of ACER, which is responsible for overseas sales platforms, and Zhuhai Xinmao, which is responsible for overseas business production. Subsequently, the company jumped to the top of the industry.
The prospectus of Jiahong Dental shows that the company's products can be divided into three categories: fixed teeth, movable dentures and orthodontic products. It also distributes dental implant products.
Among them, the fixed dental business is the largest source of income for Jiahong Dental, accounting for more than 60% of the revenue, while the fixed all-ceramics income accounts for more than 50%.
From the perspective of gross profit margin, the dental industry is indeed a hugely profitable industry.
From 2018 to 2020, the gross profit margin of Jiahong Dental's main business will be 49.74%, 47.58% and 43.21%, respectively.
Despite the impact of the new crown epidemic in 2020, the company's gross profit margin remains at a high level of 40%.
In addition, the gross profit margin of the fixed all-ceramic category even reached 64.06%, 62.82% and 59.15% respectively.
The prospectus also disclosed that from 2018 to 2020, the average sales price of Jiahong Dental’s fixed all-ceramic dentures were 314.70 yuan/piece, 312.85 yuan/piece, and 309.27 yuan/piece, but their unit costs were 113.12 yuan/piece and 116.33 yuan respectively. Yuan/piece and 126.35 Yuan/piece.
Many netizens are confused, since the cost is only more than 100 yuan, why do dental implants cost thousands of dollars at every turn?
On this issue, a reporter from Beijing Youth Daily conducted an investigation.
A tooth implant costs 20,000 to 30,000 yuan
In an interview, a person from a high-end dental private hospital stated that the price of an all-ceramic tooth is quite different between imported and domestically produced teeth. The cost of implants is high because the dentist takes some of them and the medical equipment is also shared. Some.
Take the private hospital where she is located as an example, the starting price of an imported all-ceramic tooth is 6,500 yuan; the price of an implanted tooth starts at about 26,000 yuan.
A media operations director told reporters about her dental implant experience. She compared two private dental hospitals. The former implanted a tooth for 20,000 yuan, she also had dental treatment in this hospital, and the latter implanted a tooth. 30,000 yuan, now is the postoperative observation stage.
"The overall feeling is that the doctors in this hospital who performed the operation are meticulous and more professional. The entire operation was over in one hour. The doctor has been comforting me, don't be nervous. The doctor can consider the problem from the perspective of the patient and feels very comfortable." She also said, "I made all-ceramic teeth. I can't tell which country has better all-ceramic teeth."
The cost of consumables does not exceed 25%
According to a research report by Guohai Securities, dentures (dentures) include movable dentures and fixed teeth, and implant crowns are fixed teeth.
According to the solid definition of the material, the teeth can be divided into all-ceramic teeth and porcelain teeth.
All-ceramic teeth are divided into glass ceramic materials and zirconia materials, and porcelain teeth are divided into precious metal porcelain teeth and other alloy porcelain teeth.
Glass ceramics have low strength and are suitable for anterior teeth and short fixed bridges. Zirconia is hard and suitable for posterior teeth and longer fixed bridges.
All-ceramic crowns are beautiful, convenient, and have higher added value.
The inner crown of the porcelain tooth is made of metal with low transparency, and the hardness is higher than that of tooth enamel, which can easily cause abrasion on the teeth, and the metal is prone to ionization for a long time, which leads to unsightly black lines around the gums.
From the perspective of consumer prices, the price of porcelain teeth is 800-2000 yuan, glass ceramic teeth is 2000-3000 yuan, domestic all-ceramic teeth (zirconia) are 3000-5000 yuan, and imported all-ceramic teeth are about 8000 yuan.
The report of China Sea Securities also shows that the distribution of dental implant costs focuses on the hospital side.
The traditional view is that 25% of the cost of dental implants is for diagnosis and treatment, 75% is for consumables, of which 16% is for restorative materials, and 59% is for dental implant systems (implant 40%, abutment 7%, artificial crown 12 %).
In fact, more money paid by consumers goes to dental hospitals (used to pay for physician fees, marketing expenses, purchase of medical equipment, dental hospital profits, etc.), and the actual cost of consumables is relatively low.
According to calculations, from the perspective of consumer payment, implants account for 10.4%, restoration materials account for 9.6%, and dental crowns account for 3.5%.
From the perspective of consumer payment, the cost of consumables accounts for no more than 25%.
This explains from one aspect that a denture costs one hundred yuan, but planting a tooth can easily cost thousands or even tens of thousands. Where did these costs go?
Overseas business revenue accounted for nearly 60%
The prospectus shows that from 2018 to 2020, Jiahong Dental’s operating income was 249 million, 309 million, and 296 million, respectively, and the net profit attributable to the parent was 41,701,900, 44,196, and 32,495,500.
Affected by the epidemic, from January to June 2020, overseas and domestic main business revenues fell by 26.99% and 13.56% year-on-year, respectively.
Among them, the company's overseas main business income was 170 million, 189 million and 165 million, accounting for 68.20%, 61.82%, and 57.09% of the main business income, respectively. Overseas business accounted for nearly 60%, and it was mainly concentrated in the United States. , Europe and other countries and regions.
The overseas business of Jiahong Dental mainly adopts the OEM model, and organizes production and sales according to the design sheet and dental model provided by overseas customers. The customers are mainly overseas denture laboratories.
There are serious internal management "loopholes" in Jiahong Dental.
On July 12, 2019, the financial staff of Beijing Chaoer, the company of Jiahong Dental, was deceived to join the QQ group. In the name of Beijing Chaoer chairman Sun Dezhen, the suspect asked the cashier to pay 983,000 yuan to a bank in Guangzhou.
In the afternoon of the same day, the cashier submitted an application for payment and remitted the money after the accounting review.
The chairman of Beijing Chaoer found that the above-mentioned transfer behavior was involved in online fraud and reported to the Public Security Bureau on July 13, 2019. Currently, the above-mentioned case is still in the investigation stage of the public security organ.
Text/Reporter Liu Shenliang, Coordinator/Yu Meiying
All-ceramic tooth price list
Price of domestic all-ceramic braces (unit: yuan)
Domestic all-ceramic crown: 1200~4000+
Porcelain times and sound porcelain teeth: 1600+
All-ceramic tooth: 1600+
Domestic Meijia all-ceramic teeth: 3000+
Price of imported all-ceramic braces (unit: yuan)
All-ceramic teeth in Dusselam, Germany: 1800+
German Dirui all-ceramic teeth: 2000+
Japan Noritake All Porcelain Tooth: 3000+
Korea Denteng all-ceramic teeth: 3500+
Wieland All-ceramic Tooth: 3200+
German crystal all-ceramic teeth: 3000+
Sinotel all-ceramic teeth: 3500+
German Zekang All-ceramic Teeth: 4800+
3MLava All-ceramic teeth: 5000+