Keen Dental Reports H1 2018 Revenue of RMB 93.02 Million with 13 Clinics, Plans to Deepen Presence in Shandong Market

VCBeat (WeChat ID: vcbeat) has learned that Keen Dental (830938), a company listed on the National Equities Exchange and Quotations (NEEQ), recently released its 2018 semi-annual report. During the reporting period, the company achieved sales revenue of RMB 93.02 million, representing a 55.97% increase from RMB 59.64 million in the same period last year; operating costs amounted to RMB 66.03 million, up by 73.17% from RMB 38.13 million in the same period last year; the net loss was RMB 27.90 million, compared to a net loss of RMB 13.50 million in the same period last year.

The company's sales revenue increased by 55.97% year-on-year, primarily due toThe Original Institution's Operations Are Maturing, and since the second half of 20174 New Institutions Addeddue to increased revenue, of which:

Jinan Ke’en Stomatological Hospital Co., Ltd. Shizhong Branch officially commenced operations in November 2017, achieving sales revenue of RMB 6.4872 million in the first half of 2018;

Qingdao Ke'en Stomatological Hospital Co., Ltd. officially commenced operations in July 2017 and achieved sales revenue of RMB 10.85 million in the first half of 2018;

Qingdao Keen Stomatological Hospital Co., Ltd. Shinan Keen Stomatological Outpatient Department officially commenced operations in July 2017, achieving sales revenue of RMB 3.316 million in the first half of 2018;

Shanghai Ke’en Dental Clinic Co., Ltd. commenced operations in December 2017 and achieved sales revenue of RMB 5.2254 million in the first half of 2018.

Operating costs increased by 73.17% compared to the same period last year, primarily due toAdd Institutionattributable to increased costs of materials, labor, processing, depreciation, and other expenses driven by business growth.

The widening net loss was primarily due toNewly Established Institutions Are Still in the Incubation Phase, revenue was not recognized, while increased costs and expenses related to personnel social security, consumables, depreciation, amortization, rent, and marketing led to a decrease in net profit for the current period compared to the same period last year.

It has been reported that Keen Dental is a high-end dental healthcare chain originating in Shandong Province, providing preventive, wellness, and medical dental services. In 2006, founder Wan Shaohua established his first dental clinic in Dezhou. On August 12, 2014, Keen Dental was listed on the National Equities Exchange and Quotations (NEEQ).

To ensure standardized operations and effectively implement medical quality assurance, Coen Dental has implemented Standard Operating Procedures (SOPs), engaged a specialized management team to provide targeted guidance to its facilities, and obtained ISO 9001 Quality Management System certification.

Meanwhile, to strengthen the development of medical consortia and medical communities, and accelerate the promotion of tiered diagnosis and treatment, the company has, in recent years, through Shandong ProvinceModels for Establishing Chain Dental Hospitals and Community Clinic Chains in Central Cities, standardize the hospital's hardware and software infrastructure as well as the operational procedures for treatment services, so as to provide nearby residents with accessible, convenient, and high-quality oral healthcare services.

1. Diversified selection of project content.Keen Dental has designed diversified and customizable dental treatment programs for patients. Based on each patient’s specific condition, the clinic configures products that meet varying mid-to-high-end price preferences within these treatment programs. This approach not only fulfills the medical needs of patients with oral diseases but also helps solidify its market positioning.

2. Humanized service measures.Ke’en Dental prioritizes patients’ actual needs, continuously improving service quality and enhancing patient sense of belonging. The company offers VIP service channels, online medical consultations, one-stop outpatient services, and home visits for special-needs patients, while emphasizing comprehensive post-operative follow-ups and holiday greetings to enhance customer experience.

Keen Dental has joined the local medical insurance system, establishing a medical insurance service network to facilitate more convenient payment channels. In terms of specific marketing measures, the company expands its influence through public welfare activities, advertising campaigns, specialized training, and free clinic services. Meanwhile, leveraging the characteristics of healthcare consumption, it conducts experiential promotions, promotes community screening programs, and develops group clients, thereby providing a diverse and personalized service experience for a broad customer base.

1. Centralized Procurement.Ke'en Dental formulates procurement strategies and organizes their implementation through an analysis of clinical needs;

2. Scientific Management.Ke’en Dental has established stringent procurement process standards covering market price inquiries, supplier creditworthiness assessments, contract execution, procurement plan finalization, order processing, goods receipt and dispatch, and post-use product efficacy tracking. The company provides modern logistics management training to procurement staff to enhance their professional capabilities, ensuring that procurement operations effectively meet the needs of clinical practice.

Ke’en Dental Hospital strictly adheres to the international development model for specialized dental care, implements standardized four-handed dentistry, and has established seven distinctive departments—Endodontics, Implantology, Prosthodontics, Periodontics, Pediatric Dentistry, Orthodontics, and Oral Surgery—by subdividing oral diseases. Operating under a directly-owned specialized hospital model, it provides customers with comprehensive dental services integrating prevention, treatment, and healthcare. Its primary customer base consists of patients seeking treatment for oral diseases. The company and its affiliated hospitals diagnose and treat patients, generating revenue primarily through consultation and treatment fees.

As of the end of the reporting period, the Company had 13 institutions in formal operation, comprising six in Jinan, three in Qingdao, and one each in Dezhou, Zibo, Weifang, and Shanghai.

In the second half of 2018, the company was toContinue to deepen our presence in Shandong, expand and strengthen the Shandong market, and make concerted efforts to expand into the Shanghai market., the Company will intensify its efforts in talent acquisition, optimize its workforce, focus on enhancing independent innovation capabilities in service, expand new business lines, achieve standardized operations and management, and build a modern dental chain brand rooted in Shandong with a national presence across China.