Beijing Airdoc Technology (2251) H2 2024 earnings summary

Executive summary

• 2024 revenue fell 23.3% YoY to RMB156.4m as myopia-product policy changes and tighter distributor selection offset broader service-site growth.

• Net loss widened to RMB265.1m from RMB145.7m, including regulatory-related receivables impairment and goodwill impairment in myopia treatment products.

• Active service sites reached 7,883, up 39.01% YoY; strategy shifts toward integrated diagnosis and treatment, consumer products and overseas markets.

Financial highlights

• Revenue RMB156.367m, down from RMB203.964m; gross profit RMB86.676m versus RMB125.133m in 2023.

• Loss before tax RMB268.701m and net loss RMB265.073m, compared with RMB145.859m and RMB145.654m, respectively, in 2023.

• Other income and gains declined to RMB32.174m from RMB58.104m; R&D expense decreased 8.9% to RMB101.7m.

• Selling and distribution expense fell 25.3% to RMB75.2m; administrative expense rose 12.7% to RMB111.6m, including higher employee termination payments.

• Operating cash flow was an outflow of RMB165.4m versus an inflow of RMB23.4m; investing cash outflow narrowed to RMB11.3m from RMB385.1m.

Outlook and guidance

• 2025 priorities: optimize organization and efficiency, significantly narrow losses, advance integrated diagnosis and treatment, and raise the treatment-services revenue share.

• Expand detection sales channels; prioritize myopia prevention and visual training, invest further in the WanYu LLM, and develop consumer-market models and channels.

• Grow overseas reach, particularly in the Middle East; sales in that region are expected to grow steadily in 2025.

• Aim for breakeven and sustainable growth through stronger cost control and resource allocation.