Shanghai Runda addresses concerns over 2024 financial performance

Shanghai Runda Medical Technology [SSE:603108] has addressed concerns raised by the Shanghai Stock Exchange regarding its 2024 financial performance, which saw a 9.13% decrease in revenue to CNY8.312 billion and a 79.77% plunge in net profit. In its response, Runda Medical attributed the profit decline to a combination of factors, including the impact of centralized procurement policies (DRG/DIP) on reagent pricing and volumes, as well as fixed costs that did not decrease proportionally with revenue. The company explained that the third quarter net profit suffered a hit, but they are actively pursuing cost optimization.