Core Viewpoint - Yuyue Medical has faced significant challenges post-pandemic, with a notable decline in revenue and profit, raising concerns about its future growth and market position [2][6]. Group 1: Performance Decline - In 2020, Yuyue Medical's revenue surged by 45.08% to 6.726 billion yuan, and net profit exceeded 1 billion yuan for the first time, reaching 1.759 billion yuan [2]. - However, the company has struggled to maintain growth, with a revenue decline of 5.09% in 2024 to 7.566 billion yuan and a net profit drop of 24.63% to 1.806 billion yuan, marking the first dual decline since its IPO [2][4]. - As of May 16, 2025, the company's market capitalization was 35.8 billion yuan, only about one-third of its ambitious target [2]. Group 2: Business Segmentation and Revenue Sources - Yuyue Medical's business is primarily focused on home medical devices and clinical products, with key segments including respiratory therapy, blood glucose management, and home health testing [3]. - The company restructured its business segments into five categories, but only the respiratory therapy segment has shown consistent revenue growth, while others have stagnated since 2020 [4]. - In 2024, the respiratory therapy segment saw a significant revenue decline of 22.42%, while home health testing remained relatively stable with a slight decrease [4]. Group 3: M&A Strategy and Goodwill Concerns - Yuyue Medical has relied on mergers and acquisitions (M&A) to expand its business and product offerings, acquiring several companies since 2015 [5]. - Despite these efforts, the performance of some acquired entities has been underwhelming, leading to a goodwill of 1.084 billion yuan as of the end of 2024, raising concerns about potential impairment risks [6]. Group 4: Marketing vs. R&D Investment - The company has prioritized marketing over research and development (R&D), with sales expenses exceeding 1 billion yuan annually, reaching a peak of 1.361 billion yuan in 2024, while R&D expenses were only 547 million yuan [7]. - Despite increasing R&D investment since 2018, product quality issues have been reported, affecting consumer trust and brand reputation [7][8]. Group 5: Online Sales and Brand Image - Yuyue Medical has expanded its online sales channels, leading to increased sales costs, particularly in e-commerce platform fees, which rose by 43.44% in 2024 [8]. - Negative publicity regarding product quality and pricing practices has damaged the company's brand image, potentially impacting long-term online sales growth [8]. Group 6: International Expansion and Profitability Challenges - The company is also focusing on international markets, with overseas revenue accounting for 12.54% in 2024 [8]. - Despite a 9.17% increase in revenue in the first quarter of 2024, net profit declined, indicating challenges in achieving sustainable profitability [8].