Edan Was Selected in FTSE Russell Global Stock Index

On the evening of February 19, FTSE Russell, an international index compilation company, announced the quarterly review results of its flagship index in February 2021, adding 129 A-share targets in total, and Edan Instruments (300206. SZ) officially entered the FTSE Russell. As of February 19, the company closed at 18.86 yuan per share, with a market value of 10.971 billion yuan and 16.8 times of PE (TTM).

FTSE Russell is the second largest index company in the world. FTSE GEIs is a representative product of FTSE Russell index company, covering more than 16,000 securities in 49 countries, which is recognized by global financial markets. At present, the index product has attracted more than US $1.5 trillion of global capital, which is used as the benchmark of active investment management strategy by world-famous investment institutions and widely used in various index funds. About 40% of the passive funds that track global and emerging stock indexes use FTSE Russell's index, while the remaining 60% use MSCI index.

It means that the company's investment value, growth, openness and other indicators have met the selection criteria of international investors. According to relevant people's analysis, the stocks included in the FTSE Russell global index are usually expected to bring some passive incremental funds for overseas index investment and improve the trading volume and liquidity of stocks.

Shenzhen Edan Precision Instrument Co., Ltd. was established in 1995 and listed on Shenzhen Stock Exchange in 2011 with stock code of 300206. The company is committed to providing medical institutions with high-quality products and solutions close to clinical needs, covering patient monitoring, ECG diagnosis, ultrasound imaging, maternal and child health, IVD and smart health business segments. Prior to that, Edan released its performance forecast for 2020, achieving operating revenue of 2.273-2.386 billion yuan, a year-on-year increase of 100% - 110%, and net profit of 601-624 million yuan, a year-on-year increase of 425% - 440%.

Reasons for performance change:

I. During the reporting period, in the face of the outbreak of the global New Coronavirus pneumonia outbreak, the company went all out to rush to the forefront of the epidemic to ensure the supply of the relevant epidemic products under the premise of good epidemic prevention, and the sales volume both inside and outside the market was greatly improved, and the popularity of the "Edan Instrument" brand was enhanced. At the same time, the company further improved the operation efficiency, optimized the asset liability structure, and achieved rapid growth in the overall operating performance.

II. During the reporting period, the impact of the company's non-recurring profit and loss on the net profit is expected to be about 43 million yuan, mainly government subsidies. The government subsidies in this period increased by about 26.6 million yuan over the same period of last year.