MedSci Healthcare (2415) H1 2023 earnings summary

Executive summary

• H1 revenue rose 11.9% YoY to RMB151.4m; reported net profit was RMB11.9m versus a RMB107.2m loss, while adjusted net profit increased 15.5% to RMB12.2m.

• Platform reached 3.0m registered physician users and 2.8m average MAU; 72% of China’s associate-chief physicians and above were registered users.

• IPO completed on 27 April 2023, raising HKD526.8m net; proceeds remained unused at 30 June 2023.

Financial highlights

• Revenue was RMB151.4m, up 11.9%; gross profit was RMB88.3m, up 8.2%, while cost of sales rose 17.5% to RMB63.1m.

• Reported net profit was RMB11.9m versus a RMB107.2m loss; basic and diluted EPS was RMB0.02 versus a loss per share of RMB0.23.

• Adjusted net profit, excluding listing expenses and fair-value gains/losses on convertible redeemable preferred shares, was RMB12.2m, up 15.5%.

• Operating cash flow was negative RMB0.5m versus negative RMB42.8m; cash and cash equivalents rose to RMB760.1m from RMB599.3m at 31 December 2022.

• Other income and gains increased to RMB13.2m from RMB8.8m, mainly from bank deposit interest income and government grants.

Outlook and guidance

• H2 priorities include targeted marketing solutions for centralized-procurement products and innovative medical devices, with services aligned to therapeutic areas and product lifecycles.

• MSchat completed internal testing and entered beta trials; specific applications for pharmaceutical and medical-device enterprises were planned for H2 2023.

• Plans include developing specialist physician platforms for vertical fields and expanding products internally alongside selective acquisitions.

• Wider AI deployment aims to improve service quality and efficiency and reduce relative costs.