02:13 AM EST, 02/14/2022 (MT Newswires) -- Zylox-Tonbridge Medical Technology (HKG:2190) will not swing to profit for the year ended Dec. 31, 2021 despite an estimated 545% surge in revenue and 73% jump in gross profit margin.
The company forecasts its 2021 revenue to reach 178 million yuan ($28 million), a more than sixfold increase from 27.6 million yuan in the prior year, according to a Monday disclosure.
The medical device maker attributed the expected revenue growth to robust sales of key products and the market launch of eight new products in China that obtained regulatory approvals last year.
The surge in profit margin, meanwhile, was driven by the decline in raw material price due to increased procurement volume, as well as its improved production efficiency amid technology upgrades.
Nevertheless, Zylox-Tonbridge will continue to incur "significant losses" in 2021 amid its sustained heavy investments in research and development activities.
The stock declined nearly 7% in recent trade.