Core Viewpoint - In 2024, Taimei Medical Technology (02576.HK) reported mixed results amid a cooling medical SaaS market, with revenue declining by 3.8% year-on-year to 551 million RMB, and a net loss of 217 million RMB, although the adjusted loss narrowed to 57.26 million RMB, continuing its trend of losses since 2018 [1][3]. Financial Performance - The company has experienced a cumulative loss exceeding 1.2 billion RMB over the past three years, with net losses of 480 million RMB, 413 million RMB, and 347 million RMB from 2021 to 2023 [2]. - Employee count was significantly reduced from 1,492 in 2021 to 627 by the end of 2024, leading to a decrease in employee costs by 59.2 million RMB and a nearly 40% reduction in employee benefits to 364 million RMB [3][4]. - Despite cost-cutting measures, the total expenses for sales, R&D, and administration still accounted for 90% of revenue [4]. Revenue Breakdown - The company's revenue from digital services fell by 7.4% to 343 million RMB in 2024, attributed to intensified market competition and declining average service prices [6]. - The core IRC business saw its average price drop by 70% over three and a half years, with revenues of 89.98 million RMB, 101 million RMB, and 89.83 million RMB from 2021 to 2023, while its gross margin decreased from 50.8% to 42.3% [5][7]. - Revenue from cloud software, primarily from SaaS products, showed a slight increase of 4% in 2024, but overall revenue from mainland China decreased by 8.1% to 522 million RMB [6][8]. Market Challenges - The digital services sector faces challenges in establishing a sustainable pricing model and achieving low-cost, high-margin growth due to the inability to meet critical industry needs [8].