Thalys Medical Technology Group Corporation (603716.SH) has forecasted a pre-loss and expects a net loss of 210 million to 250 million yuan in 2024.

Thalys Medical Technology Group Corporation (603716.SH) announces a expected pre-loss of 210-250 million yuan for the year 2024, attributed to the following reasons: In order to align with the company's overall strategic planning, improve asset operation and utilization efficiency, and optimize the financial situation, the company transferred 80% ownership of its subsidiary Wuhan Huixin Technology Development Co., Ltd. in September 2024 and 51% ownership of its subsidiary Aksu Yonglin Ruifu Electronic Technology Co., Ltd. in October 2024, resulting in a total loss of approximately 60 million yuan. The transferred subsidiaries are no longer included in the company's consolidated financial statements from the transfer date, leading to a further decline in profit. To effectively alleviate the pressure of financing and adapt to the company's strategic transformation needs, the company did not renew some contracts for its in vitro diagnostic business after they expired. Additionally, industry policy changes, such as collective procurement, have led to a certain decrease in the company's operating income and profit compared to the previous year. Furthermore, in order to maintain a good cash flow from operating activities, the company resorted to legal action to collect payments from some customers, which had a short-term impact on the business in certain regions. During the reporting period, the company focused on the independent research and development of in vitro diagnostic reagents, increased investment in the application of intelligent medical Internet of Things, medical big data analysis platforms, and the industrialization of overseas innovative technologies. This was aimed at expanding the integrated scale of research, production, and sales of in vitro diagnostic reagents, supporting the digital transformation and innovative development of the medical industry, resulting in higher research and development costs. During the reporting period, some subsidiaries with confirmed goodwill in the company experienced a certain decrease in income and profit.