MedSci Healthcare (2415) H2 2023 earnings summary

Executive summary

• FY2023 revenue was RMB349.2m, up 0.1% YoY; net profit was RMB55.0m versus a RMB99.9m loss in FY2022. Adjusted net profit rose 21.9% to RMB55.5m.

• The physician platform had 3.1m registered physician users and average MAUs of 2.9m; 390 pharmaceutical and medical-device enterprises used precision marketing and RWS services in 2023.

Financial highlights

• Revenue was RMB349.2m, up 0.1% YoY; cost of sales fell 7.0% to RMB132.6m and gross profit increased 5.0% to RMB216.6m.

• Profit attributable to owners was RMB55.0m versus a loss of RMB99.9m in FY2022; adjusted net profit, excluding listing expenses and preferred-share fair-value gains/losses, rose 21.9% to RMB55.5m.

• Other income and gains increased to RMB35.3m from RMB13.8m, mainly due to higher bank-deposit interest income.

Outlook and guidance

• 2024 priorities include targeted digital academic marketing for innovative and mature products, deeper AI use, specialist physician platforms, and internal expansion plus potential acquisitions; no financial targets were stated.

• MSchat-based applications for pharmaceutical and medical-device enterprises are planned for launch in 2024; AI use is expected to improve service quality and efficiency and reduce relative costs.

• Management expects digital and academic marketing demand to benefit from industry transformation and plans to explore mature-product marketing in selected fields for additional 2024 revenue.