Jiangxi Rimag (2522) H1 2024 earnings summary

Executive summary

• H1 revenue was RMB413.713m, down 21.9% YoY; adjusted net profit was RMB35.888m, down 39.5%, while profit for the period was RMB0.962m versus RMB47.292m.

• Procurement delays and slower project bidding weighed on imaging solutions; imaging-center services remained comparatively stable, and revenue increased 3.7% versus H2 2023.

• H shares listed on June 7, 2024; the network had 105 operating centers across 17 provinces, autonomous regions and municipalities at June 30.

Financial highlights

• Gross profit was RMB159.659m, down 15.4% YoY; operating profit was RMB15.378m versus RMB73.079m.

• Profit attributable to owners was RMB3.836m versus RMB42.979m; basic and diluted EPS were RMB0.011 versus RMB0.127.

• EBITDA was RMB114.132m, down 26.5%; adjusted EBITDA was RMB149.058m, down 10.9%.

• Adjusted results excluded listing expenses of RMB34.454m and share-based payment expenses of RMB0.472m; administrative expenses rose 37.0% to RMB111.1m, mainly due to listing expenses.

Segment performance

• Imaging-center services revenue was RMB319.0m, down 5.9% YoY but up 6.7% versus H2 2023; 12 projects were developed and 9 centers commenced operations in H1.

• Imaging-solution services revenue was RMB85.2m, down 54.3% YoY and 7.3% versus H2 2023, as procurement and bidding delays held projects short of revenue recognition.

• Rimag Cloud revenue rose 123.3% YoY to RMB9.6m and 17.1% versus H2 2023, supported by hospital informatization needs and secondary sales.