BRIEF: Yonghe Medical’s loss narrows on improved efficiency
Hair transplant specialist Yonghe Medical Group Co. Ltd. (2279.HK) said on Tuesday it expects its net loss for 2024 to narrow significantly to 246 million yuan ($33.73 million) or less, down 55% from a 547 million yuan loss in 2023.
The company credited the improvement primarily to optimization of its store network, including the closure of underperforming outlets to focus on its best locations, leading to a substantial improvement in operational efficiency. Implementation of the company’s self-developed Hefan medical management system also enabled refined multi-process management, helping to boost its 2024 gross profit by 7% to 10% and gross profit margin by 3 percentage points to 5 percentage points compared to 2023.
Additionally, the company’s cost control measures, including adjustments to its marketing strategy and workforce optimization, led to year-on-year decreases of 8% to 9% in the ratio of sales and marketing expenses to total revenue, and 5% to 6% in the general and administrative expense ratio.
Yonghe Medical’s stock fell in the morning session on Tuesday, closing at HKD1 by midday break, down 2.9%.
By Lee Shih Ta
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