Allmed Medical Products (stock code: 002950) is a medical equipment company specializing in medical dressings and committed to providing high-quality wound care products. As a segmented market in the medical equipment industry, medical dressings have the characteristics of low value and high frequency, mainly used for wound coverage and infection prevention to promote wound healing. With the aging population and increasing chronic diseases worldwide, the demand for wound care continues to grow. According to market research data, the global wound management market is expected to increase from $13 billion in 2017 to $17.8 billion in 2024, with a compound annual growth rate of 4.6%. In addition, the increasing demand for wound healing and comfort from patients has driven the steady development of the medical dressings industry. Through innovation and high-quality products, Allmed Medical Products actively responds to market demand and is committed to occupying an important position in the global medical dressings market.

At the end of the first quarter of 2024, Allmed Medical Products' total assets were RMB 5.154 billion, an increase of 1.36% from the beginning of the period of RMB 5.084 billion. The total liabilities were RMB 1.852 billion, a decrease of 1.17% from the beginning of the period of RMB 1.873 billion. The asset-liability ratio decreased from 36.85% at the beginning of the period to 35.93%, indicating an improvement in the company's financial structure. Goodwill remained unchanged at RMB 9.809 million, indicating that there were no significant new changes in the company's mergers and acquisitions. From the perspective of the owner's equity attributable to the shareholders of the listed company, it was RMB 3.278 billion at the end of the period, an increase of 2.85% from the beginning of the period of RMB 3.187 billion.

In terms of profits, Allmed Medical Products' revenue was RMB 746 million, a year-on-year decrease of 8.38%. Operating profit was RMB 116 million, a year-on-year decrease of 22.46%. Net profit was RMB 9.413 million, a year-on-year decrease of 25.83%. Gross margin decreased from 33.47% in the same period last year to 28.78%, and net margin decreased from 15.58% to 12.61%. Return on equity (ROE) decreased from 3.99% at the beginning of the period to 2.89%. These data indicate that the company is facing certain pressure in terms of revenue and profits, mainly due to increased market competition and rising costs.

In terms of cash flow, Allmed Medical Products' net cash flow from operating activities was RMB 188 million, a significant improvement compared to a negative RMB 1.872 million in the same period last year, an increase of 1102.93%. The subtotal of cash inflows from operating activities was RMB 862 million, a year-on-year decrease of 8.31%, while the subtotal of cash outflows was RMB 675 million, a year-on-year decrease of 29.65%. Net cash flow from investing activities was RMB -3.916 million, a year-on-year decrease of 93.43%, mainly due to the redemption of fixed-income bank wealth management products using idle cash in the previous period. Net cash flow from financing activities was RMB -8.217 million, a year-on-year decrease of 54.66%, mainly due to the reduction in bank loan repayments this period. The impact of exchange rate changes on cash and cash equivalents was RMB 0.9821 million, a year-on-year increase of 149.20%, mainly due to fluctuations in the RMB to USD exchange rate this period.

Overall, Allmed Medical Products' financial performance in the first quarter of 2024 shows some challenges. Despite the improvement in the asset-liability ratio and significant increase in net cash flow from operating activities, the decrease in revenue and profits reflects the impact of market competition and cost pressures. The company needs to continue to respond to market changes through innovation and optimizing cost structure to maintain its competitive advantage in the medical dressings market.