On March 22, GLONGHUI | Jinhai Medical Technology (02225.HK) announced that the company expects to record a net loss of SGD 3.5 million to SGD 4.5 million for the year ending December 31, 2023, compared with net profit of SGD 0.12 million for the previous year.
The expected shift from net profit to net loss is mainly due to the following reasons: 1. After the board of directors previously re-evaluated its business priorities and strategic direction, the Group actively developed minimally invasive surgery solutions and related medical products and services in China. As a result, there were a number of early product development and test manufacturing costs. The relevant amount was approximately SGD 1.15 million during the reporting period, compared to approximately SGD 0.60 million in the previous year. 2. During the reporting period, as far as the minimally invasive surgery solutions business is concerned, the Group incurred additional general and administrative expenses to support the development of new business, including hiring relevant industry veterans and other supporting staff, and renting additional suitable space for R&D, manufacturing and marketing of products related to minimally invasive surgery solutions. As a result, general and administrative expenses during the reporting period were SGD 0.91 million, while in the previous year, the Group incurred expenses of approximately SGD 0.70 million. 3. During the reporting period, the Group incurred additional promotion and marketing expenses to support the new minimally invasive surgery solutions business. The expenditure in the reporting period was approximately SGD 1.72 million, compared to approximately SGD 0.17 million in the previous year. 4. As far as the Group's overseas human resources and dormitory service business is concerned, the Group paid management a number of incentive performance bonuses during the reporting period to commend business improvements. The amount in question is approximately SGD 2.5 million.