Kingmed responds to exchange inquiry on 2024 performance

Guangzhou Kingmed Diagnostics (SSE:603882) has released its response to the Shanghai Stock Exchange's inquiry regarding its 2024 annual report. The company clarified the rationale behind a significant increase in long-term borrowings despite a substantial cash balance of CNY 2433.58 million, attributing it to funding capital expenditure projects like new medical laboratory construction and strategic capital reserves. It addressed concerns over accounts receivable by detailing their aging and recovery strategies. Further, it explained a loss of CNY 15.03 million from fixed asset write-offs due to obsolescence, after conducting thorough assessments and confirmed a loss CNY 99.03 million in investment value, including losses relating to its investment in DRA Company Limited, after a strategic re-evaluation of market dynamics. Regarding related-party transactions with Guangzhou Kinmax Pharmaceuticals, Kingmed outlined the nature of the transactions, pricing mechanisms, and the commercial rationale, emphasizing that the dealings are fair and necessary for their respective business operations. Kingmed's R&D expenditures in 2024 totaled CNY 407.68 million, with an R&D capitalization ratio of 1.77% the company justified this as a starting point to explore data resources asset.