Group 1 - The company, Zhejiang Taimei Medical Technology Co., Ltd., announced a sudden change in its financial leadership, with CFO Jiang Chengwen resigning due to personal reasons and Wang Wei appointed as the new CFO [1] - Wang Wei, aged 36, has over ten years of experience in capital market transactions and has held various senior positions in financial institutions, including Credit Suisse and Huadeng Capital [2] - The company has reported continuous losses for 11 years since its establishment in 2013, with a revenue of 551 million yuan in 2024, a year-on-year decrease of 3.8%, and a net loss of 217 million yuan [3] Group 2 - The company's workforce has significantly reduced from 1,490 full-time employees at the end of 2021 to 627 by the end of 2024, indicating a nearly 60% reduction in staff [3] - Cost-cutting measures have led to a 40% decrease in employee welfare expenses, resulting in a gross margin increase of 9.6 percentage points to 40.8% in 2024 [3] - Despite the improvement in gross margin, the company's R&D investment has nearly halved, raising concerns about its long-term competitiveness in the market [3]

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].