Core Viewpoint - In 2024, Kingmed Diagnostics (603882.SH) reported its first loss, significantly impacted by a credit impairment loss of 619 million yuan in accounts receivable [1] Financial Performance - Kingmed Diagnostics' revenue for 2024 was 7.189 billion yuan, a year-on-year decrease of 15.81%, with a net profit attributable to shareholders of -381 million yuan [3][4] - The company experienced a decline in revenue and net profit in 2023, with revenues dropping to 8.54 billion yuan and net profit to 643 million yuan [3] - From 2020 to 2022, Kingmed Diagnostics saw explosive growth, with revenue increasing from 8.244 billion yuan to 15.48 billion yuan and net profit rising from 3.849 billion yuan to 6.674 billion yuan [3] Accounts Receivable - As of December 31, 2024, the accounts receivable balance was 5.888 billion yuan, with 5.341 billion yuan (90.71%) attributed to medical diagnostic service clients [4] - The company reported a high proportion of accounts receivable over one year old, totaling 2.719 billion yuan, which accounted for 50.9% of the medical diagnostic service accounts receivable [2] - Kingmed Diagnostics made a provision for bad debts of 619 million yuan in 2024, bringing the total bad debt provision to 1.492 billion yuan [4] Investment Losses - Kingmed Diagnostics incurred an investment loss of approximately 99.04 million yuan in 2024 due to poor performance from two startups, DRA and Beijing Gu Hai Tian Mu Biomedical Technology Co., Ltd [7] - The investment in DRA, aimed at enhancing high-end genetic testing technology, resulted in significant losses, with DRA's revenue reported at only 1.14 million yuan and a net loss of 13.4 million yuan in 2024 [8][11] - The investment in Beijing Gu Hai Tian Mu also showed poor performance, with revenues of 345,900 yuan and 252,400 yuan in 2023 and 2024, respectively, leading to substantial unrealized losses for Kingmed Diagnostics [11] Management Measures - Kingmed Diagnostics has implemented measures to improve accounts receivable management, including establishing a collection task force and utilizing digital tools for monitoring [5][6] - The company is focusing on enhancing performance assessments related to accounts receivable collection to mitigate risks [6]