6-K - MHUAF - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2022

Commission File Number: 001-41291

MEIHUAINTERNATIONAL MEDICAL TECHNOLOGIES CO., LTD.

(Exact name of registrant as specified in its charter)

88 Tongda Road, Touqiao Town

Guangling District, Yangzhou, 225000

People’s Republic of China, Xuhui District,Shanghai, China

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

On November 14, 2022, Meihua International Medical Technologies Co., Ltd. released its unaudited semi-annual report for the six months ended June 30, 2022, which report is attached hereto as Exhibit 99.1 and incorporated herein by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Meihua International Medical Technologies Co., Ltd.
Date: November 14, 2022	By:	/s/ Yulin Wang
	Name:	Yulin Wang
	Title:	Chief Executive Officer

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release Announcing Unaudited Financial Results for the Six Months Ended June 30, 2022

Exhibit 99.1

Meihua International Medical Technologies Co.,Limited

Reports Unaudited 2022 First Half FinancialResults

YANGZHOU, China, November 14, 2022 – Meihua International Medical Technologies Co., Limited (“MHUA” or the “Company”) (NASDAQ: MHUA), a reputable manufacturer and provider of Class I, II and III disposable medical devices with operating subsidiaries in China, today reported its unaudited financial results for the six months ended June 30, 2022.

First Half 2022 UnauditedFinancial Highlights

●	Total Revenues increased by 13% to approximately $54.8 million for the six months ended June 30, 2022, from approximately $48.4 million in the same period of fiscal year 2021.
●	Gross profit increased by 14% to approximately $20.9 million for the six months ended June 30, 2022, from approximately $18.3<br> million in the same period of fiscal year 2021.
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●	Gross margin remained at 38% in the six months ended June 30, 2022, as compared to the six months ended June 30, 2021.
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●	Income from operationsdecreased<br> by 24% to approximately $8.7 million<br> for the six months ended June 30, 2022, from approximately<br> $11.5 million in the same period of fiscal year 2021.
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●	Netincome decreased by 28% to approximately $6.6 million for the six months ended June 30, 2022, from approximately $9.1 million in<br>the same period of fiscal year 2021.
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	For the six months ended June 30,
	2022			2021			% Change
Total revenues	$	54,832,847		$	48,360,993			13	%
Gross profit	$	20,891,732		$	18,300,645			14	%
Gross margin		38	%		38	%		-	pp*
Income from operation	$	8,668,702		$	11,479,313			(24	)%
Net income	$	6,554,887		$	9,092,467			(28	)%
Net income per share – Basic and Diluted	$	0.29		$	0.45			(37	)%
*	Percentage points
---	---

Mr. Yongjun Liu, Chairman of the Company, commented: “We are continuing to improve our operational efficiency and upgrade our product offerings while increasing our market coverage to expand the Company’s presence. I would like to thank the entire MHUA team for their commitment to active sales and product development in the first half of the year, our distributors for their smooth cooperation, and our customers and investors for their trust in us. Together we will work to continually improve our products and product offerings to provide better care for our products’ end users. At the same time, our board of directors together with the Company’s management, are also actively recruiting high-end overseas professionals to strengthen R&D of new products and team management capabilities. Beginning with Q4 of this year, Meihua will begin working with our partners to explore the different application scenarios of medical devices by using web3.0 and XR technology in the metaverse, and also, we’re planning to launch a high-end senior care project. We are aiming to expand our products and services to the U.S. market by the end of 2023. We are also aiming to further our market reach and extend our progress in the near future.”

Mr. Yulin Wang, CEO and interim CFO of the Company, commented: “We are pleased to announce record performance and stable operational cash flow for the first half of 2022 following the Company’s successful IPO earlier this year. We reported 13% and 14% growth, respectively, in revenues and gross profit for the six months ended June 30, 2022, and our gross margin also maintained at 38%, similar to that of the same period last year, demonstrating that our sales and marketing efforts in the Company’s focused markets have started to bear fruit. In particular, our sales from Class I medical devices increased by 25% from the same period last year. Despite the multiple changes resulting from China’s epidemic policy, which partially impacted our product sales margins, we still managed to quickly adapt to the stress test presented throughout the Yangtze Delta Region Covid-19 pandemic that disrupted our supply chain and increased raw material and logistics costs during the first half of this year. Our team is confident that we can align our business direction and strategic objectives to achieve long-term stable and sustainable performance growth in the post-epidemic era.”

FirstHalf 2022 Unaudited Financial Results

The following table sets forth the breakdown of our revenue for the periods presented:

	For the six months ended June 30,
	2022					2021					Amount			%
Category	Amount		% of<br> total revenue			Amount		% of<br> total revenue			Increase <br><br>(Decrease)			Increase <br><br>(Decrease)
Class I	$	7,657,297		14	%	$	6,121,972		13	%	$	1,535,325			25	%
Class II		39,897,058		73	%		35,416,113		73	%		4,480,945			13	%
Class III		1,584,816		3	%		1,704,431		4	%		(119,615	)		(7	)%
Others		5,693,676		10	%		5,118,477		11	%		575,199			11	%
Total revenue	$	54,832,847		100	%	$	48,360,993		100	%	$	6,471,854			13	%

Revenues increased by approximately $6.5 million, or 13%, to approximately $54.8 million for the six months ended June 30, 2022, from approximately $48.4 million in the same period of fiscal year 2021, which primarily resulted from an increase of approximately $1.5 million for revenues generated from Class I products and an increase of approximately $4.5 million in revenues for Class II products. Our overall increase in revenues was mainly due to the Company’s business expansion, increased research and development of new products, and development of new customers.

Costof revenues primarily included the cost of materials, direct labor expenses, overhead, and other related incidental expenses that are directly attributable to the Company’s principal operations. Cost of revenues increased by approximately $3.9 million, or 13%, to approximately $33.9 million for the six months ended June 30, 2022, from approximately $30.1 million in the same period of fiscal year 2021. The increase was mainly attributable to increased sales for the six months ended June 30, 2022.

Grossprofit increased by approximately $2.6 million, or 14%, to approximately $20.9 million for the six months ended June 30, 2022, from approximately $18.3 million in the same period of fiscal year 2021.The increase was primarily due to the Company’s business expansion and sales growth during the six months ended June 30, 2022.

OperatingExpenses

	For the six months ended June 30,
****	2022				****	2021				****	Amount		%		****
	Amount		% of<br> revenue			Amount		% of <br> revenue			Increase<br> (Decrease)		Increase<br> (Decrease)
Selling expenses	$	3,311,649		6	%	$	3,185,797		7	%	$	125,852		4	%
General and administrative expenses		4,799,711		9	%		2,219,725		5	%		2,579,986		116	%
Research and development expenses		1,642,204		3	%		1,415,810		3	%		226,394		16	%
Bad debt expenses		2,469,466		5	%		—		—			2,469,466		100	%
Total	$	12,223,030		22	%	$	6,821,332		14	%	$	5,401,698		79	%

Operatingexpenses increased by approximately $5.4 million, or 79%, to approximately $12.2 million for the six months ended June 30, 2022, from approximately $6.8 million in the same period of fiscal year 2021. This increase in operating expenses is detailed below:

●	Sellingexpenses increased by approximately $0.1 million, or 4%, to approximately $3.3 million for the six months ended June 30,<br>2022, from approximately $3.2 million in the same period of 2021. The increase in selling expenses was mainly due to increased salary<br>expenses and shipping expenses as a result of increased sales.
●	Generaland administrative expenses increased by approximately $2.6 million, or 116%, to approximately $4.8 million for the six months<br>ended June 30, 2022, from approximately $2.2 million in the same period of fiscal year 2021. The increase in general and administrative<br>expenses was primarily attributable to an increase of approximately $2.3 million in an investment consulting expense paid to Tai He International<br>Group Limited, a Hong Kong investment company, whom we engaged as part of our IPO process to provide certain consulting and investor<br>relations services to the Company.
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●

Sellingexpenses increased by approximately $0.1 million, or 4%, to approximately $3.3 million for the six months ended June 30, 2022, from approximately $3.2 million in the same period of 2021. The increase in selling expenses was mainly due to increased salary expenses and shipping expenses as a result of increased sales.

●

Generaland administrative expenses increased by approximately $2.6 million, or 116%, to approximately $4.8 million for the six months ended June 30, 2022, from approximately $2.2 million in the same period of fiscal year 2021. The increase in general and administrative expenses was primarily attributable to an increase of approximately $2.3 million in an investment consulting expense paid to Tai He International Group Limited, a Hong Kong investment company, whom we engaged as part of our IPO process to provide certain consulting and investor relations services to the Company.

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●	Researchand development expenses increased by approximately $0.2 million, or 16%, to approximately $1.6 million for the six months ended<br>June 30, 2022, from approximately $1.4 million in the same period of fiscal year 2021. The increase was mainly due to the increase<br>in consumption of materials related to our research and development activities.

●	Baddebt expenses increased 100% to approximately $2.5 million for the six months ended June 30, 2022 from nil in the same period<br>of 2021. The bad debt expense was related to certain deposits made to Tai He International Group Limited.

Incomefrom operations decreased by approximately $2.8 million, or 24%, to approximately $8.7 million for the six months ended June 30, 2022, as compared to approximately $11.5 million in the same period of fiscal year 2021.

Net income decreased by approximately $2.5 million, or 28%, to approximately $6.6 million for the six months ended June 30, 2022, as compared to approximately $9.1 million in the same period of fiscal year 2021, as a result of the factors described above.

Cashwas approximately $34.2 million as of June 30, 2022, reflecting an increase of approximately $26.0 million from approximately $8.1 million as of December 31, 2021. Our increased cash during the six months ended June 30, 2022 was primarily the result of our closing on our initial public offering in February of 2022.

Recent Developments

On February 19, 2022, the Company announced the closing of its initial public offering (the “Offering”) of 3,940,000 ordinary shares (“Ordinary Shares”) at a public offering price of $10.00 per ordinary share, including 340,000 Ordinary Shares issued pursuant to the partial exercise of the underwriters’ over-allotment option, for aggregate gross proceeds of $39.4 million before deducting underwriting discounts and commissions, and offering expenses. The Offering, which was conducted on a firm commitment basis, closed on February 18, 2022 and the Company’s Ordinary Shares began trading on February 16, 2022 on The Nasdaq Global Market under the ticker symbol “MHUA.”

About Meihua International Medical TechnologiesCo., Ltd.

Meihua International Medical Technologies is a reputable manufacturer and provider of Class I, II, and III disposable medical devices with operating subsidiaries in China. The Company manufactures and sells Class I disposable medical devices, such as eye drop bottles, medicine bottles and anal bags, and Class II and III disposable medical devices, such as identification tape, gynecological examination kits, inspection kits, surgical kits, medical brushes, medical dressing, masks, disposable infusion pumps, electronic pumps and puncture kits, which products are sold under its own brands and also sourced and distributed from other manufacturers. The Company has received international “CE” certification and ISO 13485 system certification and has also registered with the FDA (registration number: 3006554788) for more than 20 products. The Company has served hospitals, pharmacies, medical institutions and medical equipment companies for over 30 years, providing more than 800 types of products for domestic sales, as well as 120 products which are exported to more than 30 countries internationally across Europe, North America, South America, Asia, Africa and Oceania. For more information, please visit www.meihuamed.com.

Forward-Looking Statements

This press releasecontains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements includestatements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statementsthat are other than statements of historical facts. When the Company uses words such as “may,” “will,” “intend,”“should,” “believe,” “expect,” “anticipate,” “project,” “estimate”or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statementsare not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially fromthe Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risksincluding, but not limited to, the following: the Company’s goals and strategies; the Company’s future business developmentand plans of future business development; financial condition and results of operations; product and service demand and acceptance; reputationand brand; the impact of competition and pricing; changes in technology; government regulations; fluctuations in general economic andbusiness conditions in China and assumptions underlying or related to any of the foregoing and other risks contained in reports filedby the Company with the U.S. Securities and Exchange Commission (“SEC”). For these reasons, among others, investors are cautionednot to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’sfilings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-lookingstatements to reflect events or circumstances that arise after the date hereof.

For more information,please contact:

Investor Relations

Janice Wang
Wealth Financial Services LLC
Phone:	+86 13811768599
	+1 628283 9214
Email:	[email protected]

MEIHUA INTERNATIONAL MEDICAL TECHNOLOGIES CO.,LTD.

CONSOLIDATED BALANCE SHEETS

As of June 30, 2022 and December 31, 2021

(US$, except share data and per share data,or otherwise noted)

			December 31, <br> 2021

Assets
Current assets
Cash	34,165,528		$	8,149,276
Restricted cash	500,000			-
Bank acceptance receivables	27,850,584			19,379,845
Accounts receivable	60,481,702			67,101,297
Inventories	1,197,543			1,251,393
Other current assets	2,763,742			1,394,539
Due from related parties	32,427			-
Total current assets	126,991,526			97,276,350
Property, plant and equipment, net	7,307,393			7,477,744
Intangible assets, net	521,711			562,001
Investment	895,776			941,531
Other noncurrent assets	55,356
Deposits	29,112,733			30,599,755
Deferred tax assets	365,775			-
Total assets	165,250,270		$	136,857,381
Liabilities and shareholders’ equity
Liabilities
Current liabilities
Short-term bank borrowings	5,523,955		$	5,178,420
Accounts payable	15,268,473			20,981,041
Taxes payable	1,704,843			2,082,252
Accrued expenses and other current liabilities	731,437			847,066
Deferred tax liability	80,838			-
Total current liabilities	23,309,546			29,088,779
Total liabilities	23,309,546			29,088,779
Commitments and contingencies
Shareholders’ equity
Ordinary share, 0.0005 par value, 80,000,000 shares authorized, 23,940,000 and 20,000,000 shares issued and outstanding as of June 30, 2022 and December 31, 2021	11,970			10,000
Additional paid-in capital	43,464,842			9,716,484
Statutory surplus reserves	15,178,467			15,178,467
Retained earnings	84,129,550			77,574,663
Accumulated other comprehensive income	(844,105	)		5,288,988
Total shareholders’ equity	141,940,724			107,768,602
Total liabilities and shareholders’ equity	165,250,270		$	136,857,381

All values are in US Dollars.

MEIHUA INTERNATIONAL MEDICAL TECHNOLOGIES CO.,LTD.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTSOF INCOME AND COMPREHENSIVE INCOME

For the six months ended June 30, 2022 and2021

(Unaudited)

(US$, except share data and per share data,or otherwise noted)

	For the six months ended<br> June 30,
	2022			2021
Revenues
Third party sales	$	54,803,181		$	47,853,541
Related party sales		29,666			507,452
Total revenues		54,832,847			48,360,993
Cost of revenues		33,941,115			30,060,348
Gross profit		20,891,732			18,300,645
Operating expenses
Selling		3,311,649			3,185,797
General and administrative		4,799,711			2,219,725
Research and development		1,642,204			1,415,810
Bad debt expenses		2,469,466			-
Total operating expenses		12,223,030			6,821,332
Income from operations		8,668,702			11,479,313
Other (income) expense:
Interest expense		98,805			87,443
Interest income		(19,725	)		(12,073	)
Currency exchange (gain) loss		(449,217	)		(70,961	)
Other expense (income), net		50,180			31,108
Total other (income) expenses		(319,957	)		35,517
Income before income tax provision		8,988,659			11,443,796
Income taxes expense		2,433,772			2,351,329
Net income	$	6,554,887		$	9,092,467
Foreign currency translation adjustment – gain/(loss)		(6,133,093	)		835,543
Comprehensive income	$	421,794		$	9,928,010
Weighted average number of ordinary shares – basic and diluted		22,873,370			20,000,000
Basic & diluted net income per ordinary share	$	0.29		$	0.45