HK-Listed Chunli Medical's 1H 2020 Revenue Up 8.5%
The orthopedic implants provider grew despite the global economic slump.
Chunli Medical (01858:HK), a Hong Kong-listed orthopedic implants provider, has released its 2020 semi-annual financials. The company recorded a revenue of CNY 407 million and net profits of CNY 117 million, 8.54% and 7% up respectively, as of the end of June. The earnings-per-share (EPS) reached CNY 0.34.
The company attributed the majority growth to the business in joint implants and prostheses. This segment contributed to the revenue of CNY 398 million during this half-year, at a growth rate of 7.65%. The ceramic joint prosthesis was the most popular product series in the segment.
One thing to notice is that the company's gross profits were CNY 288 million, 13.43% up from last year, and the gross margin increased from 67.7% to 70.8%. The reason is that Chunli Medical has retained a stronger bargaining power in negotiating the price of raw materials, which relatively decreases the fixed cost per product piece.
Weigao Medical (01066:HK), another orthopedic company listed on the Hong Kong Stock Exchange, will release its 2020 semi-annual financial report on August 26, 2020. Amid the pandemic, the company published its 2019 annual report, with a revenue of CNY 10,366 million and net profits of CNY 1,845 million, 17.66% and 25.25%, up from 2018.
China's orthopedic implants industry is expected to boom in the coming years, driven by the compressed market demand due to COVID-19 and increasing organic needs from the aging population.