Medical device provider China Medical Technologies, Inc. (CMED) Thursday reported a loss for the second quarter, as compared with a profit in the comparable period last year, reflecting lower revenues and higher costs. The company also provided a revenue guidance for the third quarter.
For the second quarter, net loss was US$ 6.90 million or RMB 47.09 million compared with a profit of RMB 117.73 million in the prior-year period. Net loss per American Depositary Shares, or ADS, was US$ 0.26 or RMB 1.78 versus a profit of RMB 2.43 in the last year quarter.
On an adjusted basis, net earnings plunged to US$ 2.59 million or RMB 17.67 million from RMB 102.09 million in the 2008-year period. Adjusted net profit per ADS was US$ 0.10 or RMB 0.67 versus RMB 3.85 a year ago.
The China-based company's revenues for the quarter slumped 14.4% to US$ 24.33 million or RMB 166.07 million from RMB 193.97 million in the second quarter of fiscal 2008.
On a segmental basis, revenues from Immunodiagnostic systems were US$11.26 million or RMB 76.83 million versus RMB 122.16 million in the prior year. However, revenues from Molecular diagnostic systems rose to US$ 13.07 million or RMB 89.23 million from RMB 71.81 million a year earlier.
Quarterly, gross margin decreased to 65.4% from 70.5% in the corresponding period prior year, reflecting a price reduction on ECLIA reagent kits starting from September 2009.
During the three-month period, the company had a one-time cost of US$4.01 million or RMB 27.36 million with regard to amortisation of Surface Plasmon Resonance, or SPR, intangible assets. Research and development expenses were US$1.39 million or RMB 9.50 million compared to RMB 6.34 million, sales and marketing costs rose to US$ 2.55 million or RMB 17.43 million from RMB 11.25 million last year. General and administrative expenses climbed to US$ 6.61 million or RMB 45.13 million from RMB 25.47 million in the same quarter a year ago.
Total operating expenses incurred by China Medical were US$ 14.57 million or RMB 99.42 million, significantly higher than RMB 43.06 million in the 2008-year period. In the second quarter, the company had an income tax expense of US$ 2.7 million or RMB18.3 million.
Looking ahead to the third-quarter, China Medical expects revenues to be between US$ 24.9 million or RMB 170.0 million and US$ 26.4 million or RMB180.0 million. The company anticipates adjusted profit from continuing operations to be not less than US$ 5.6 million or RMB 38.0 million.
In Wednesday's regular trading session, CMED closed trading on the Nasdaq at $15.15 per share. In the 52-week period, the shares have been trading in a range of $11.41 to $.26.07.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.