Shares in Aoxin Q&M 1D4 opened higher on Aug 12 after the company reported a profit of RMB7.3 million ($1.3 million) for the 1HFY2024 ended June 30, reversing from the loss of RMB1.2 million in the same period the year before. As at 9.38am, shares in Aoxin Q&M were trading at 6.8 cents, 30.8% higher than its last-closed price of 5.2 cents on Aug 8.
On July 31, Aoxin Q&M said it expected to see a “significant overall improvement” in its results for the six-month period.
Revenue rose by 6.0% y-o-y to RMB85.4 million as revenue for primary healthcare and laboratory services rose, offsetting the lower revenue from the company’s distribution of dental equipment and supplies. Revenue from the primary healthcare segment rose by 12.5% y-o-y to RMB57.0 million as it saw an overall increase in patients seeking dental treatment while revenue from laboratory services rose by 20.5% y-o-y to RMB10.8 million due to business expansion to overseas markets. Meanwhile, revenue from distribution of dental equipment and supplies fell by 15.8% y-o-y to RMB17.7 million due to lesser demand for dental equipment from government hospitals on the back of a reduction in government capital expenditure budget.
Ebitda, excluding share of results from its associate, surged by 95.2% y-o-y to RMB13.1 million.
Profit for the period, excluding share of results from its associate, stood at RMB4.7 million, compared to the loss of RMB3.2 million in the same period last year.
Share of results from its associate, Acumen Diagnostics, rose by 30.6% y-o-y to RMB2.7 million.
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Cash and cash equivalents as at June 30 stood at RMB57.8 million.
“For the next 12 months, the group is cautiously optimistic, against the backdrop of improving consumer spending and economic activity in China. The group expects the public healthcare sector to remain competitive, mainly driven by the changing regulatory environment affecting medical insurance policy and the national centralised procurement policy,” says Dr Shao Yongxin, Aoxin Q&M’s group CEO.
“At the same time, the group will explore digital technology to develop precise and suitable treatment plans/alternatives to patients and seek the next growth curve for performance improvement,” Shao adds. “Barring any unforeseen circumstances, there are no known significant changes in the trends and competitive conditions in which the group operates and no other known factors or events that may adversely affect the group in the next 12 months.”
As at 10.14am, shares in Aoxin Q&M are trading 1.5 cents higher or 28.8% up at 6.7 cents.
