Hope Medical Reports H1 2020 Net Profit of RMB 2.00 Million, Down 26.07% Year-on-Year Amid Rising Promotion Expenses

Source: Wabei.com

Wabei.com, August 20,Hopromed(839926) Recently released its 2020 semi-annual report. As of June 30, 2020, the company achieved operating revenue of RMB 15,103,167.89 in the first half of 2020, a year-on-year decrease of 1.72%; the net profit attributable to shareholders of the listed company was RMB 2,000,318.63, a year-on-year decrease of 26.07%.

As of June 30, 2020, the Company’s total assets at the end of the reporting period amounted to RMB 95,256,297.08, representing a decrease of 0.24% compared to the beginning of the period; the net assets attributable to shareholders of the listed company totaled RMB 71,083,516.25, an increase of 2.90% from the beginning of the period.

During the reporting period, selling expenses increased by 55.93% compared to the same period last year, primarily due to a RMB 2.1584 million increase in business promotion fees. Influenced by the “Two-Invoice System” and “One-Invoice System” policies, market promotion services are no longer borne by distributors; instead, promotional activities are conducted either independently by the Company or through entrusted promotion service companies, resulting in higher market promotion expenses.

According to data from Wabei.com, Hopromed is primarily engaged in the research and development, production, and sales of orthopedic medical implant materials.