Beijing Airdoc Technology (2251) H1 2024 earnings summary

Executive summary

• H1 revenue rose 13.6% YoY to RMB93.7m; 5,950 active service sites, up 78.6% YoY, supported 2.96m screenings.

• Net loss widened to RMB81.5m from RMB41.0m, primarily due to a RMB23.7m receivables impairment and higher share-based payments.

Financial highlights

• Revenue increased to RMB93.7m from RMB82.5m; gross profit rose to RMB53.8m from RMB51.4m for the six months ended June 30.

• Cost of sales rose 28.3% to RMB40.0m, outpacing revenue growth; higher hardware, cloud service and site maintenance costs contributed.

• Other income and gains fell to RMB17.7m from RMB49.8m, reflecting lower interest and investment income and FX gains.

• R&D expenses fell 13.3% to RMB49.0m; selling and distribution expenses declined 13.8% to RMB38.2m, while administrative expenses rose 7.2% to RMB42.0m.

• Operating cash outflow was RMB68.4m, versus RMB94.9m in H1 2023; investing cash outflow was RMB246.0m.

Outlook and guidance

• Plans include expanding sales channels across Airdoc Medical, Airdoc Health and Airdoc Eye Health; integrating LLM and GenAI into services; and developing combined diagnosis and treatment offerings.

• Priorities include continued R&D, lower costs and improved gross margins, higher production capacity, overseas expansion and next-generation products; sales in new overseas markets are expected to grow gradually.