On January 27, Shanghai Kinetic Medical Co.Ltd(300326) released the performance forecast. It is expected that the net profit attributable to the shareholders of the listed company will be 140 million to 200 million yuan in 2021, and the net profit after deducting non recurring profits and losses will be 80 million to 120 million yuan, turning losses into profits year-on-year.
The company said that the changes in performance in 2021 were mainly affected by the following factors:
During the reporting period, the Procurement Alliance of 12 provinces (autonomous regions and municipalities) led by Henan province carried out centralized procurement of orthopaedic trauma medical consumables, and the bid winning price of the selected products decreased significantly. Therefore, the profitability of the wholly-owned subsidiary Jiangsu adier Medical Technology Co., Ltd. (hereinafter referred to as “adier”) was adversely affected. According to the relevant requirements of the accounting standards for business enterprises issued by the Ministry of Finance and the accounting supervision risk tip No. 8 – goodwill impairment issued by the CSRC, the company has conducted a preliminary impairment test on the goodwill formed by the acquisition of adier, The proposed provision for goodwill impairment ranges from 120 million yuan to 180 million yuan (the actual amount of provision shall be determined according to the goodwill impairment test and evaluation report issued by the evaluation institution and the data audited by the annual audit accountant).
During the reporting period, due to the decline in the shareholding ratio of Shanghai Ligeti Biotechnology Co., Ltd. (hereinafter referred to as “Ligeti”), the company no longer has a significant impact on it. The company transferred the accounting of Ligeti from equity method to fair value measurement, which increased the net profit attributable to shareholders of listed companies by about 28 million yuan in 2021. The project belongs to non recurring profit and loss.
During the reporting period, the company reversed the equity incentive expenses that had been accrued but could not be implemented in the early stage, thus increasing the net profit attributable to shareholders of Listed Companies in 2021 by 23 million yuan.
Regardless of the above factors, the net profit attributable to the shareholders of the listed company during the reporting period is expected to be between 240 million yuan and 280 million yuan. The minimally invasive vertebroplasty business and low-temperature RF business of the company have returned to normal growth, and these businesses continue to contribute stable profits to the company.
In addition, due to changes in fair value, government subsidies, disposal of equity and other factors, the impact of non recurring profits and losses on the net profit attributable to shareholders of listed companies during the reporting period was about 76 million yuan, compared with 36 million yuan in the previous year.
