Meihao Medical (1947) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 1.6% YoY to RMB74.7m, while net loss widened to RMB32.6m from RMB13.6m, driven mainly by higher cost of sales and administrative expenses.

• Active patients increased 22.8% YoY to 61,777; six hospitals and one clinic operated across Wenzhou and nearby cities.

Financial highlights

• Revenue was RMB74.680m vs RMB73.513m; gross profit fell to RMB26.976m from RMB32.655m as cost of sales rose 16.6% to RMB47.704m.

• Gross margin declined to 36.1% from 44.4%; selling expenses rose 10.1% to RMB22.8m and administrative expenses rose 60.3% to RMB36.7m.

• Loss before tax was RMB30.146m vs RMB7.158m; loss attributable to owners was RMB32.424m vs RMB13.594m.

• Basic and diluted loss per share was RMB5.57 cents vs RMB2.27 cents; income tax expense was RMB2.478m vs RMB6.448m.

Outlook and guidance

• Adapt to nationwide collective procurement expansion into orthodontics, pediatric and cosmetic dentistry through service-portfolio optimization, supplier collaboration and cost efficiencies.

• Planned initiatives include AI-assisted diagnostics, telehealth, upgraded child-dental services, standardized processes and scalable technologies.

• 2025 priorities include oral-health education, local-government partnerships, sustainability efforts and a dental training center with international collaboration.