Kingmed Diagnostics(SH:603882) Hua Xia Shi Bao·2025-04-27 10:01Core Viewpoint - The financial performance of Guangzhou Kingmed Diagnostics Group Co., Ltd. has significantly declined, with a net profit loss of 3.81 billion yuan in 2024, marking a 159.26% decrease compared to the previous year [2][3][4]. Financial Performance - In 2024, the company reported operating revenue of 7.19 billion yuan, a 15.81% decrease from 8.54 billion yuan in 2023 [2][3]. - The net profit attributable to shareholders was -3.81 billion yuan, down from 6.43 billion yuan in 2023, reflecting a decline of 159.26% [2][4]. - The basic earnings per share were -0.82 yuan, compared to 1.38 yuan in 2023, a decrease of 159.42% [4]. Reasons for Decline - The decline in revenue and profit is attributed to a slowdown in market demand, increased fixed cost amortization, and a decrease in operational leverage efficiency [2][6]. - The company faced significant credit impairment losses due to extended collection periods for accounts receivable, amounting to 6.19 billion yuan in 2024 [6][8]. Cost Management - The company implemented cost control measures, resulting in a reduction of various expenses: sales expenses decreased by 8.32% to 931 million yuan, management expenses fell by 16.32% to 598 million yuan, and R&D expenses dropped by 14.27% to 400 million yuan [7]. - The total number of employees was reduced from 11,586 in 2023 to 10,413 in 2024, with the largest reductions in technical, sales, administrative, and R&D personnel [7]. Bad Debt Issues - The company continues to struggle with bad debt, with accounts receivable totaling 5.88 billion yuan as of December 31, 2024, and a significant portion of this amount remains unresolved [2][8][10]. - The company plans to provision for credit impairment losses between 6.5 billion and 7.2 billion yuan, indicating ongoing challenges in managing receivables [8][10]. Shareholder Actions - Major shareholders began reducing their stakes in the company as early as 2019, with total cashing out amounting to approximately 9 billion yuan before the poor performance in 2024 [3][12]. - Despite the financial losses, the company distributed cash dividends totaling over 600 million yuan in the first three quarters of 2024, raising concerns about prioritizing shareholder returns over long-term company health [11].