Yide Medical Reports 2019 Net Profit of RMB 3.64 Million, Down 57.63%, Amid Increased Investment and R&D Efforts

Source: Wabei.com

Wabei.com, May 6 – According to the 2019 annual report recently released by EDER Medical (839056), the company’s operating revenue for 2019 amounted to RMB 106,093,765.69, representing a year-on-year increase of 5.87%. The net profit attributable to shareholders of the listed company was RMB 3,640,244.05, a decrease of 57.63% compared to the same period last year. Basic earnings per share stood at RMB 0.10, down from RMB 0.24 in the previous year.

It is understood that during the reporting period, EDER Medical’s business revenue remained stable, basically on par with 2018. Trade products still accounted for a significant proportion of the business revenue. The slight increase in core business revenue alongside a decline in net profit was primarily due to the following reasons: First, although market demand has increased due to the development of microsurgery and the promotion of the national tiered diagnosis and treatment system, this demand needs time to gradually translate into actual purchasing power. While the long-term outlook is positive, near-term growth remains limited. Second, despite favorable long-term market trends, manufacturers of imported brands have also established production facilities in China, manufacturing mid-to-low-end surgical microscopes, thereby intensifying competition for domestically produced products. Third, market growth has attracted domestic manufacturers to enter the production and sales of surgical microscopes, resulting in intensified market competition as companies face pressure from both foreign and domestic competitors. Fourth, the company increased its investment and R&D efforts. In 2019, the company incurred R&D expenses totaling over RMB 7 million. Meanwhile, it invested more than RMB 12 million to establish an industrial base for “contact lens” products. Fifth, in 2019, the impairment of financial instruments was assessed using the “expected credit loss method,” which had an impact on net profit.

According to data from the Wabei New Third Board Research Institute, EDER Medical is driven by high-tech innovation, combining electronic control with mechanical design. In line with the development trends of the broader health industry, the company currently offers two major product categories: first, surgical microscopes for minimally invasive procedures, covering fields such as ophthalmology, neurosurgery and spinal surgery, orthopedics, and otorhinolaryngology (ENT), along with peripheral systems for microsurgical procedures; second, optometric products in the field of ophthalmology, specifically “eye contact lenses,” including intraocular lenses and scleral lenses.