- EBITDA grew 47% for 12 months ended 31 Dec 2021
- Proposed listing of 49%-owned Acumen Diagnostics on NASDAQ will enhance AOXIN's shareholder value
- Growth trend in revenue expected to continue as COVID-19 situation in China improves
Catalist listed Aoxin Q&M Dental Limited ("Aoxin" or "the Group"), today announced a 20.8% increase in revenue to RMB160.2 million for full year ended 31 December 2021 ("FY2021"). The Group reported a net loss after tax of RMB7.3 million for FY2021, an improvement from the net loss of RMB12.1 million from a year ago. In 2020, in view of COVID-19 situation, the Chinese government provided temporary relief to businesses by waiving the social security insurance contributions. Aoxin would have additional RMB6.3 million of social security insurance expenses recorded in FY2020 resulting in a Net Loss of RMB18.4 million, instead of RMB12.1 million.
Dr. Shao Yongxin, Group Chief Executive Officer of Aoxin Q&M said, "Global economic prospects for 2022 will continue to be uncertain, with many countries still struggling to contain the rapid spread of the Omicron variant. The possibility of new COVID-19 strains cannot be ruled out. However, Aoxin Q&M's dental services make it resilient and well-positioned ride out the current downturn to capitalize on strategic opportunities in the post-COVID healthcare sector".
Mr Ryan San, Deputy Chief Executive Officer of Aoxin Q&M said, "The Group has been operating in a challenging environment, severely impacted by the recurring lockdowns of entire cities in the People's Republic of China ("PRC"). We are keeping a close watch on the evolving COVID-19 situation in PRC, while managing our costs with strict discipline."
Revenue
The Group's revenue increased by RMB27.6 million or 20.8%, from RMB132.6 million in FY2020 to RMB160.2 million in FY2021, mainly due to the recovery in all business segments.
Revenue from primary healthcare segment increased by 19.7% from RMB78.5 million in FY2020 to RMB93.9 million in FY2021. The increase in revenue were from our key hospitals in Shenyang and Dalian cities, and a polyclinic in Panjin city mainly due to increase in patients.
Revenue from distribution of dental equipment and supplies segment achieved a significant growth of 24.8%. Revenue was RMB50.4 million in FY2021 as compared to RMB40.4 million in FY2020. There was a higher demand for dental supplies materials from government hospitals amidst a gradual economic recovery in China backed by rolling out of the COVID-19 vaccination in the country.
Revenue from laboratory services segment increased by 15.9% to RMB15.9 million in FY2021 as compared to RMB13.7 million in FY2020 due to increase in demand of such services from the government dental hospitals in Shenyang City.
EBITDA
The Group's EBITDA also increased from RM9.5 million in FY2020 to RMB13.9 million in FY2021. The increase in EBITDA was mainly attributable to higher revenue and better performance from key dental hospitals and polyclinics as well as higher sales for dental equipment and supplies. Despite a positive EBITDA of RMB13.9 million, the Group recorded a loss of RMB7.3 million due to salary increment and recruitment expenses, as well as higher other expenses, such as acquisition related fees for Acumen Diagnostics Pte. Ltd. ("Acumen Diagnostics") and other tax expenses.
Mr Ryan San, Deputy Chief Executive Officer of Aoxin Q&M added. "We are also hopeful that moving forward, our recent acquisition of a 49% stake in Acumen Diagnostics will improve the profitability and cashflow of the Group. With Acumen Diagnostics expertise in R&D and medical diagnostics we will be able to play a vital role in support of the Singapore government's strategy of living with COVID-19. Concomitantly, this will also contribute to the growth of the Group."
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