HK Stock Market Move | YONGHE MEDICAL (02279) rose more than 9% in early trading, store optimization and marketing upgrades helped the company significantly narrow its full-year losses.

YONGHE MEDICAL (02279) rose more than 9% in the morning session, as of press time, it was up 7.27% at HKD 1.18. On the news front, YONGHE MEDICAL released a performance forecast, expecting the net loss to shrink by no less than about 55% compared to last year. This is mainly attributed to the optimization of the store network layout last year, the closure and integration of inefficient stores, and the concentration of resources on core stores, significantly improving operational efficiency; the self-developed chain medical management system "Hefan" has been fully implemented, achieving refined management in multiple processes. These measures have increased gross profit and gross profit margin by approximately 7% to 10% and 3 to 5 percentage points respectively compared to the same period in 2023. In addition, the group has implemented a refined marketing strategy, dynamically adjusting marketing channels through big data analysis, effectively improving customer acquisition efficiency and return on investment; at the same time, streamlining the organizational structure to enhance team efficiency. These measures have effectively controlled costs while improving efficiency, resulting in a decrease in sales and marketing expenses and general and administrative expenses by about 8.0% to 9.0% and 5.0% to 6.0% respectively compared to the same period in 2023.