Gelonghui, March 5, 丨 Yunkang Group (02325.HK) announced that the Group expects to record a net loss of between RMB 90 million and RMB 130 million for the year ended December 31, 2023, while a profit of RMB 373.9 million was recorded for the year ended 31 December 2022.
The expected change in profit to loss is mainly due to:
(i) During the reporting period, the Group's overall diagnostic service revenue declined significantly compared to the same period last year due to the decline in demand for phased testing and screening across the country, resulting in a decrease in the Group's profit. However, without considering the impact of the national phased testing and screening business, the Group's routine testing business achieved healthy and steady growth during the reporting period;
(ii) During the reporting period, the Group further enhanced its operational and management capabilities and strengthened cash flow management, resulting in a significant improvement in net cash from operating activities compared to last year. However, due to the long repayment cycle of some trade receivables, corresponding impairment provisions have increased significantly; and
(iii) During the reporting period, as demand for phased testing and screening subsided, the Group accurately implemented a series of measures to respond in a timely manner according to local conditions. Eliminating redundancy caused one-time costs and expenses, which reduced the Group's profit in the short term.
In view of the Group's future development strategy of focusing on “in-depth service and lean operation”, the Group's medical diagnostic service revenue is expected to achieve high-quality growth by deepening the Group's service system and building an efficient operating system.