Innovation Medical(SZ:002173) Zheng Quan Zhi Xing·2025-08-11 22:19Core Viewpoint - Innovation Medical reported a decline in total revenue and a significant increase in net loss, indicating challenges in the current operational environment [2][3]. Operational Overview - As of the reporting period, total revenue was 402 million yuan, a year-on-year decrease of 1.6%. The net profit attributable to shareholders was -11.36 million yuan, an increase of 29.12% year-on-year. The net profit after deducting non-recurring items was -12.88 million yuan, up 22.42% year-on-year. In Q2 alone, total revenue was 208 million yuan, a year-on-year increase of 0.73%, with a net profit of 2.58 million yuan, up 119.74% year-on-year [2]. Profitability Analysis - The company's profitability showed signs of recovery, with a gross margin of 12.06%, an increase of 2.27% year-on-year. The net margin was -2.79%, up 28.4% year-on-year. However, the company remains in a loss position, with earnings per share at -0.03 yuan, an increase of 25.0% year-on-year. The net asset per share was 4.0 yuan, down 4.82% year-on-year [3]. Cash Flow and Expense Control - The net cash flow from operating activities significantly improved, with operating cash flow per share at 0.19 yuan, a staggering increase of 2578.88% year-on-year. However, cash and cash equivalents decreased to 249 million yuan, down 55.17% from 556 million yuan in the same period last year. Accounts receivable were 74.89 million yuan, a decrease of 39.67% year-on-year. The ratio of three expenses (selling, administrative, and financial expenses) to revenue was 13.88%, an increase of 10.15% year-on-year [4]. Main Business Composition - The company's main business revenue is almost entirely derived from medical services, amounting to 400 million yuan, which accounts for 99.73% of total revenue, with a gross margin of 11.82%. Other business revenue was 1.09 million yuan, representing 0.27% of total revenue, with a high gross margin of 88.56%. Regionally, Heilongjiang had the highest revenue at 236 million yuan, accounting for 58.70% of total revenue, with a gross margin of 12.78%. Zhejiang's revenue was 147 million yuan, making up 36.73% of total revenue, with a gross margin of 10.99% [5]. Development Review and Outlook - During the reporting period, the company maintained a competitive advantage in the complex environment of the medical service industry. Four hospitals—Jianhua Hospital, Kanghua Hospital, Fu Tian Hospital, and Mingzhu Hospital—hold significant market positions in their respective regions. Jianhua Hospital optimized and integrated functional departments to reduce operating costs and enhance management efficiency, while Kanghua Hospital achieved slight revenue growth. Fu Tian Hospital experienced a decline in revenue and efficiency due to adjustments in medical insurance payment policies [6]. Financial Health Assessment - Despite a recovery in profitability, the company's cash flow situation and expense control require attention. The average operating cash flow to current liabilities ratio over the past three years was -6.09%, and the average net cash flow from operating activities over the past three years was negative, indicating a need for improvement in cash flow management and expense control [7].