According to the Zhitong Finance App, Ruili Medical & Aesthetic (02135) announced annual results for the year ended December 31, 2023. The group achieved revenue of 189 million yuan (RMB, same below) during the period, an increase of 15.11% over the previous year; losses attributable to shareholders were 32.457 million yuan, an increase of 103.99% over the previous year; and the basic loss per share was 7.77 points.
According to the announcement, the main reason for the increase in revenue and continued losses is 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 company's performance in the first half of the year, leading 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 Co., Ltd. (Suzhou Yonglan). In 2023, Suzhou Yonglan's R&D expenses, plant construction costs, and compensation for R&D personnel were approximately At 7.7 million yuan (2022:5.8 million yuan), these expenses have not been recovered from the resulting financial benefits in 2023; in 2023, the Group continued to obtain share option expenses of about 4.5 million yuan (2022: about 3.8 million yuan); impairment of goodwill of several of the Group's subsidiaries, including: Hangzhou Bellyfair Medical Aesthetic Clinic Co., Ltd. (Hangzhou Bellyfeel) and Wuhu Ruili Medical Aesthetic Clinic Co., Ltd. (Wuhu Ruili) received a total of about 6.7 million yuan and 5.1 million yuan respectively Industry competition To exacerbate the impact, Hangzhou Bellyfair and Wuhu Ruili both lost money in 2023; the goodwill impairment of Shenzhen Jiumei Xinhe Medical Devices Co., Ltd. (Jiumei Xinhe) was about 4.2 million yuan due to the decline in Jiumei Xinhe's performance for the current year not being improved in a timely manner; and the Group's investment in Bioris Medical (Beijing) Trading Co., Ltd. (Bioresis) lost about 2.5 million yuan due to the extended product launch cycle during the COVID-19 pandemic.