RAILY AESMED (02135) issues a profit warning, expecting the company's owners to have a loss of approximately 59 million yuan in 2024.

RAILY AESMED (02135) announced that the group is expected to achieve revenue of approximately RMB 199 million in the year 2024 and revenue of approximately RMB 189 million in 2023. The group's attributable loss to owners is expected to be approximately RMB 59 million, and the attributable loss to owners of the parent company in 2023 is expected to be approximately RMB 32 million. The announcement stated that the Board of Directors believes that the continued losses are mainly due to the following reasons: a provision for impairment of goodwill and intangible assets (offset by related deferred tax items) of approximately RMB 55 million accumulated throughout the year, and a reversal of contingent consideration of approximately RMB 18 million; in the year 2024, the group's expenditure on purchasing equity increased to approximately RMB 8 million (compared to approximately RMB 4 million in 2023). Furthermore, in order to accelerate the research and development and production of medical device products within the group, the group has increased its investment in research and development activities of its indirectly owned subsidiary, Suzhou Ruiquan Biomedical Technology Co., Ltd. (formerly known as Suzhou Yonglan Biomedical Technology Co., Ltd.) (Suzhou Ruiquan). In the year 2024, the management expenses and research and development expenses of Suzhou Ruiquan are expected to be approximately RMB 5 million, and these expenses have yet to be recovered from the economic benefits generated in the year 2024.