Analysis of Inventory Data and Production and Sales Status of Changzhou Bairuiji Biomedical Co., Ltd.

Based on the search results of public information, I first need to clarify an important point:

The inventory data of Changzhou Bairuiji Biomedical Co., Ltd. actually matches its production and sales status

[0].

I. Company Overview

Changzhou Bairuiji is a medical device company planning to list on the Beijing Stock Exchange. Its core product is

cross-linked sodium hyaluronate gel for uterine cavity use

, which is mainly used to prevent intrauterine adhesion after surgery. It is the first Class III medical device product approved in China[0].

II. Analysis of Matching Between Inventory Data and Production and Sales

1. Reasonable Inventory Scale

The proportion of inventory to total assets remains within the reasonable range of

6%-9%

, which matches the growth of the company’s business scale[0].

2. Stable Dealer Inventory

According to the reply to the review inquiry letter, the

dealer inventory ratio

at the end of each reporting period is as follows:

The dealer inventory ratio

remains stable at around 40%

, indicating that the company’s channel management is relatively robust[0].

3. Synchronized Growth in Production and Sales

The production and sales of the company’s main product are in good condition:

In 2024, sales volume reached
1.2071 million units
, with a year-on-year increase of 15.04%
In 2024, sales revenue was
RMB 143.8181 million
, with a year-on-year increase of 15.04%
The unit price of the product remains stable at around
RMB 100
[0]

4. Verification by Intermediary Agencies

Intermediary agencies conducted spot checks and supervision of inventory for 47 dealers.

There is no material difference between the roll-back inventory counting results and the purchase, sales and inventory balance data

. The proportion of revenue from dealers subject to inventory counting procedures increased from 27.47% in 2022 to 49.76% in 2025[0].

III. What Does a “Mismatch” Usually Indicate?

Although Bairuiji’s actual data is matched, generally speaking,

a mismatch between inventory data and production and sales may reflect the following problems

1. Risk of Inventory Overstock

Continuous increase in inventory ratio (e.g., exceeding 50%): Indicates that sales speed cannot keep up with production pace
Decline in inventory turnover rate: Increase in capital occupation, reduction in operational efficiency

2. Quality Issues with Sales Data

False purchases by dealers: The company forces goods into channels, while actual terminal sales are sluggish
Aggressive revenue recognition: May have issues such as premature revenue recognition

3. Supply Chain Management Issues

4. Early Warning of Financial Risks

IV. Risk Tips for Bairuiji

Although inventory matches production and sales, the following risks still need to be noted:

Risk of Over-reliance on a Single Product
: The cross-linked sodium hyaluronate gel for uterine cavity use accounts for more than
65% of revenue
[0]
Risk of Inventory Impairment
: If inventory management is poor or market prices fluctuate, the company may face impairment losses[0]
Risk of Market Competition
: Competitors such as Shandong Saikesaisi Medical Engineering Co., Ltd. and Shanghai Haohai Biological Technology Co., Ltd. have first-mover advantages[0]

References

[0] Prospectus and Reply to Review Inquiry Letter of Changzhou Bairuiji Biomedical Co., Ltd. (https://pdf.dfcfw.com/pdf/H2_AN202512021792591872_1.pdf)

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