Finance Association, September 12 (Reporter Wu Chao) The financial indicators for the first half of this year previously announced by medical device company Kangtai Medical (300869.SZ) were not as good as expected. Not only did revenue fall short, but after deducting non-net profit, it also turned profit and loss. Both gross profit margin and net interest rate declined sharply year on year. At the company's semi-annual results briefing held today, the company's chairman Hu Kun explained the reasons for the decline in performance and explained the company's future strategic plans.

At the briefing, some investors asked why the company's performance was so poor and whether it had strategies to increase profits and sales. Hu Kun said that the decline in performance was mainly due to a decrease in orders due to phased inventory removal from downstream customers, as well as a high performance base due to the surge in domestic market demand in the first quarter of last year. The company plans to continue to expand domestic and overseas markets on the basis of the preserved volume market, and strive to enhance the company's continued profitability.

However, Kangtai Medical has made some progress in research and development. According to the company, in the first half of the year, the Changsha R&D center obtained domestic medical device registration certificates and sold 9 products, including zirconia porcelain blocks for all-porcelain dentures, blood glucose acid and cholesterol meters, blood sugar test strips, and early pregnancy test strips. Currently, zirconia ceramics for all-porcelain dentures have been mass-produced. In addition, a number of in vitro diagnostic products have completed prototype design and preliminary testing, and are in the late stages of development. It is expected that they will enter the registration process within this year.

Zheng Min, director of the company, said that the company plans to continue to increase investment in research and development of intelligent medical testing equipment, client software, and IoT terminals that meet the health needs of the elderly, focusing on the development of smart health and pension products based on telemedicine services and combining big data technology and IoT technology.

In terms of market expansion, Yang Zhishan, general manager of the company, said that the company will segment sales teams and markets to increase development efforts in key markets to achieve greater market coverage. In terms of overseas markets, the company will also actively integrate into the “Belt and Road” initiative. In particular, it will develop business in the African market through localization construction in overseas markets, expansion of cross-border e-commerce channels, and participation in exhibitions. At present, the company has achieved market breakthroughs in many countries in Africa. In the future, it will continue to deeply cultivate the African market and increase its product launch and marketing efforts.

At the results meeting, Kangtai Medical's long-term slump in stock prices also triggered dissatisfaction among some investors. Other investors are concerned about the company's convertible bond plan and suggest that the company downgrade the convertible debt-for-share price and use market conditions to convert bonds into shares.

In response, the company explained that the stock price is affected by a combination of factors such as the macro environment, capital aspects, and investor mentality, and reiterated that it will enhance the company's market value by doing a solid job in its main business and raising profit levels. Regarding convertible bonds, the company said that construction of the convertible bond fund-raising projects currently issued has begun, and that subsequent plans will be decided based on actual conditions and strategic needs, and that careful consideration will be given to whether to lower the price of convertible shares.