SINGAPORE: Aoxin Q&M shares jumped 30.8% on Aug 12, following the company’s announcement of a profit of RMB7.3 million (S$1.3 million) for the first half of fiscal year 2024.
This marks a significant turnaround from the RMB1.2 million loss reported in the same period last year. The Edge Singapore reported that by 9:38 am, Aoxin Q&M’s shares were trading at 6.8 cents, a notable rise from the previous closing price of 5.2 cents on Aug 8.
On July 31, Aoxin Q&M hinted at an anticipated improvement in its financial results for the year’s first half. The company’s revenue rose 6.0% year-on-year (YoY), reaching RMB85.4 million.
This increase was largely due to higher revenue from its primary healthcare and laboratory services, which helped offset the decline in revenue from distributing dental equipment and supplies.
Revenue from primary healthcare services increased by 12.5% YoY to RMB57.0 million. This growth was attributed to a rise in the number of patients seeking dental treatments.
The laboratory services segment also saw an increase of 20.5% YoY, generating RMB10.8 million due to the company’s expansion into overseas markets.
However, revenue from distributing dental equipment and supplies fell by 15.8% YoY to RMB17.7 million due to decreased demand from government hospitals, influenced by a reduction in the government’s capital expenditure budget.
Aoxin Q&M’s EBITDA, excluding the share of results from its associate, soared by 95.2% YoY to RMB13.1 million.
The profit for the period, excluding the share of results from its associate, reached RMB4.7 million, a significant recovery from the RMB3.2 million loss recorded in the previous year.
The company also reported a 30.6% YoY increase in its share of results from its associate, Acumen Diagnostics, contributing RMB2.7 million.
As of June 30, Aoxin Q&M had cash and cash equivalents amounting to RMB57.8 million. Dr Shao Yongxin, Group CEO of Aoxin Q&M, noted that the group is cautiously optimistic about the next 12 months.
“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,” he said.
Looking forward, Dr Shao mentioned that the company plans to explore digital technology to develop more precise treatment plans and identify new growth opportunities.
He added that barring unforeseen circumstances, no significant changes are expected in the competitive environment or other factors that could negatively impact the company in the next 12 months. /TISG
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