Jinwu Financial News | Ruili Medical & Aesthetic (02135) issued a profit warning. The Group expects revenue of approximately RMB 189 million for the year ended December 31, 2023 (2022: revenue of approximately RMB 165 million); and for the year ended December 31, 2023, losses attributable to owners of the parent company were approximately RMB 32 million. In the same period last year, parent company owners should account for losses of approximately RMB 16 million.
According to the announcement, the continued loss was mainly due to the fact that in the first month of 2023, the business of medical institutions in Zhejiang and Anhui was still affected by the large-scale COVID-19 outbreak, which affected the Group's performance in the first half of the year and led to an increase in marketing costs. In order to speed up the development and production of the Group's new medical device products, the group increased investment in R&D activities of Suzhou Yonglan Biomedical Technology, an indirect non-wholly-owned subsidiary of the company. In 2023, Suzhou Yonglan's R&D expenses, plant construction costs, and compensation for R&D personnel were approximately RMB 8 million. These expenses have not yet been recovered from the economic benefits arising from this in 2023; the goodwill impairment of some of the Group's subsidiaries, etc.