SINGAPORE (Feb 27): Aoxin Q&M Dental Group recorded a 46% drop in FY17 earnings to RMB 5.01 million ($1.04 million) from RMB 9.32 million in FY16.
Revenue was 16% higher at RMB 100.7 million, compared to RMB 86.9 million in the previous year, due to an increase in all of the group’s business segments.
The group’s primary healthcare segment saw revenue increase by 7% y-o-y to RMB 67.3 million.
The revenue for distribution of dental equipment and supplies segment was 28% higher y-o-y at RMB 30.6 million.
During FY17, the group recorded full 12 months revenue of RMB 2.87 million from its new laboratory segment, Shenyang Qingaomei Oral Restorative Technology, which was acquired in Oct 2017.
Due to the new laboratory segment, the group incurred a cost of laboratory services during this financial year of RMB 521,000.
Consumables and dental supplies increased by 29% to RMB 8.87 million from RMB 6.89 million last year, as due to an increase in the cost of materials in tandem with the increase in revenue from primary healthcare.
Cost of dental equipment and supplies jumped 25% to RMB 24.0 million compared to RMB 19.3 million a year ago.
Professional fee and expenses related to the group’s IPO came in at RMB 5.80 million from RMB 3.32 million in the previous year, related to the IPO of the Company.
As at Dec 31 2017, the group’s cash and cash equivalents stood at RMB 95.3 million.
The group has declared a final cash dividend of 0.2 cents per share, which will be payable on May 17.
In a media release issued on Tuesday, Shao Yongxin, group CEP of Aoxin Q&M says that the demand for dental services in China continues to be strong, but the shortage of trained dentists will impede its aim for sustainable long-term growth.
Shares in Aoxin Q&M closed at 22 cents on Tuesday.
