Lexin Medical’s performance fell 80% : the industry’s bottom gross margin net interest rate continued to slump below the assessment standards executive compensation still soared
Generally speaking, the increase of research and development costs, the scientific and technological content of main products will be improved accordingly, research and development, design more humanized, differentiation, brand awareness will also improve.However, from the sales unit price of Lexin Medical’s main products, the effect of r&d investment may not be good. In 2020, the sales volume and unit price of the company’s main products increased significantly, but in 2021, the unit price of the company’s products decreased from 69.67 yuan/set in 2020 to 68.73 yuan/set in 2021.In addition to the increase in r&d expenses, Lexin Medical’s administrative expenses increased 40.56% to 0.75 billion yuan in 2021.The company said it was mainly due to the increase in salary of new managers and the reduction of social security during the previous epidemic.However, since 2018, lexin Medical’s administrative expenses have increased rapidly. In 2018, the company’s administrative expenses were 43 million yuan, and increased to 53 million yuan in 2020.In June 2019, Lexin Medical launched the executive compensation assessment plan. If the indicators in the assessment plan are successfully completed, the operating revenue and net profit of Lexin Medical in 2021 will reach 2.2 billion yuan and 200 million yuan, 1.84 times and 7.33 times higher than 2018 respectively.Although Lexin Medical failed to meet the assessment requirements in 2021, it did not block the salary increase for senior executives. The average annual salary of senior executives was 342,700 yuan in 2020, and it rose to 592,500 yuan in 2021.Last year, the secretary of the board of directors and the chief financial officer of Lexin Medical resigned one after another, and Shi Shaohai resigned as deputy general manager and chief financial officer. Shi Shaohai still works in the company after his resignation.Xu Lang resigned as deputy general manager and secretary of the board of directors for personal reasons, and no longer holds any position in the company after his resignation.In addition, ding Yunjie, deputy general manager and secretary of the board of directors of Lexin Medical, also left the company in 2020 for personal reasons.For lexin medical’s profitability performance and brand influence, China net financial reporters will continue to pay attention to.