Rayence, Q2 2021, Sales Results

Stuart Kusta, , , , , ,

Image credit: Rayence booth RSNA 2017, Rayence US

On August 17th, Rayence Corporation published its financial results for Q2 2021. These results show that Group sales continued to grow and recover strongly from the pandemic-related sales contraction during 2020. Quarterly group sales reached ₩36.7 bn, compared with ₩23.0 bn in Q2 2020, an increase of approximately +60% year-on-year. This took cumulative 2021 sales to ₩68.1 bn, compared with ₩50.2 bn in H1 2020, an increase of approximately +36% year-on-year. On the trailing-twelve month basis, sales revenue returned to positive growth of approximately +3.5% year-on-year.

From a product mix perspective, quarterly and H1 sales growth was driven by higher sales of CMOS and intra-oral (I/O) detectors, partially offset by lower sales of TFT detectors. In H1 2021, sales revenue originating from CMOS detectors were approximately +94% higher when compared with H1 2020. Sales revenue originating from I/O detectors were approximately +125% higher and sales originating from TFT detectors were approximately -19% lower over the same period.

Detector pricing

As of the first half of 2021, the average selling price of TFT detectors decreased by 12.4% compared to the average for 2020, and CMOS detectors fell by 3.4%. In addition, the average selling price of I/O sensors decreased by 9.5% compared to the average for 2020. 

Disclosure of single sales and supply contracts

During the quarter, a single customer accounted for approximately 37% of total group sales revenue.

CustomerTermValueContent
Nanning Yiju Medical2016-2021CNY 175.5mMedical TFT
GE Healthcare2017-2021KRW 23.5 bnMammo FPD
GE Healthcare2018-2021USD 15.5mMedical TFT
GE Precision Healthcare2019-2023USD 27.4mCSI TFT Wireless
Undisclosed (China)2019-2023USD 15.5mDental FPD & I/O
Sales by geographic region

From a geographical perspective, quarterly and H1 sales growth was driven by higher sales from customers based domestically, partially offset by lower sales from international customers. The majority of domestic sales are to Vatech Corporation, the companies original parent and largest shareholder. A significant proportion of these sales will end up being exported globally under the Vatech brand through its global distribution network.

Although the company does not report on its international sales by geography, the Group’s financial accounts do include details of trade receivables and income from its subsidiaries. These can provide some indication around trade activity by geographic region.

For H1 2021, these statements indicate the following:

  • Significantly lower sales from OSKO Inc and its Mexican counterpart OSKO MEX. Rayence acquired OSKO Inc and OSKO MEX during 2016 to enable greater sales and distribution across the Latin America region and the demand for TFT detectors within this market has been strong during recent periods as the region transitions from analogue to digital x-ray solutions.
  • Explosive sales growth from the MyVet Imaging Inc (USA) subsidiary, which has subsequently merged with Rayence to form a new company, Rayence & MyVet Inc.
  • Lower sales from Woorien (Korea), the companies veterinary and animal health subsidiary. During 2018 Rayence Corporation transferred intellectual property and assets relating to its veterinary health entity to Woorien in order to rationalise as well as support future growth initiatives. During 2020, Woorien has launched a number of new products including the world’s first veterinary dental panoramic x-ray system and a veterinary specialised CT scanner, both of which can be integrated with its animal PACS solution VetView.
  • Rayence incorporated “Rayence China CS” although no sales were reported just yet
SubsidiaryIncorporationControl
Rayence IncUSA100%
OSKO IncUSA100%
OSKO MEXMexico100%
WoorienKorea91.07%
Woorien FarmKorea62.18%
Rayence & MyVetUSA91.07%
QpixUSA100%
A-PharmKorea62.18%
P&VKorea91.07%
Rayence ChinaChina100%

X-ray Detector Market Research Products

For more detailed analysis of the Rayence detector portfolio as well as analysis on the global market for X-ray detectors, PMI is due to publish the following report by the 31st August 2021:

  • Global Market for X-ray Detectors: H1 2021 Report

    • In addition, the following X-ray detector market research products are available:

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    Published by Stuart Kusta