Hope Medical Reports 2019 Net Profit of RMB 6.68 Million, Up 47.50% Year-on-Year, Driven by Revenue Growth and Increased Government Subsidies

Source: Wabei.com

Wabei.com, April 21 – Hopromed (839926) recently released its 2019 annual report, which showed that the company’s operating revenue for 2019 amounted to RMB 36,642,940.23, representing a year-on-year increase of 34.29%; the net profit attributable to shareholders of the listed company was RMB 6,682,685.46, up 47.50% from the previous year; basic earnings per share were RMB 0.14, compared to RMB 0.09 in the same period of the prior year.

It is understood that during the reporting period, the operating income increased by RMB 9,357,231.58 compared to the previous year, representing a 34.29% increase from the prior period. This was attributable to the Company’s strengthened performance assessment of accounts receivable for the sales department in the current period.

During the reporting period, operating costs increased by RMB 3,901,634.64 compared to the previous year, primarily due to the increase in revenue during the current period, which led to a corresponding rise in operating costs and expenses.

During the reporting period, the Company’s operating profit amounted to RMB 9.1136 million, representing a year-on-year increase of 42.94%. This growth was primarily attributable to: (1) an increase in operating revenue during the current period; and (2) in accordance with the Notice on Issuing the Revised “Accounting Standards for Business Enterprises No. 16 – Government Grants” issued by the Ministry of Finance, government grants related to the Company’s daily activities were separately recognized under “Other Income.” The amount recognized in the current year was RMB 1.3942 million, reflecting an increase of RMB 652,400 compared to the previous period, mainly due to the receipt of corporate income tax refunds for New Third Board-listed companies from the local finance bureau during the current period.

During the reporting period, asset impairment losses increased by RMB 1,482,105.13 compared to the previous year, representing a 36.92% increase, primarily due to the provision for inventory write-downs made by the Company.

During the reporting period, net profit increased by RMB 2,152,080.65 compared to the previous year, representing a 47.50% increase over the prior period, primarily due to the growth in operating revenue and an increase in other income for the Company in 2019.

According to data from the Wabei New Third Board Research Institute, Hopromed is primarily engaged in the research and development, production, and sales of orthopedic medical implant materials. Its main products include: right-angle metal bone plates, angled metal bone plates, metal locking bone plates, metal maxillofacial bone plates, metal bone screws, metal fixation pins, metal intramedullary nails, metal bone pins, and cerclage wires (clasps); spinal screw-rod systems, spinal internal fixators, and others.