New Ray Medicine International Holding Limited Provides Group Earnings Guidance for the Year Ended December 31, 2020
January 08, 2021 at 07:33 am
New Ray Medicine International Holding Limited provided group earnings guidance for the year ended December 31, 2020. For the year, it is expected that the Group will record a significant increase in net loss for the year ended 31 December 2020 as compared to a net loss of approximately HKD 44.1 million for the year ended 31 December 2019. The loss of the Group for fiscal year 2020 was mainly attributable to (i) the decrease in gross profit
mainly due to the decrease in the average selling price of the Group's major product under
the second generation of Cephalosporins ("Product") (1.0g) under the newly
implemented centralised drug procurement policy in some regions in the People's Republic
of China in 2020; (ii) the decrease in share of profit of Saike International Medical Group
Limited ("Saike International"), an associate of the Group, as a result of the slowdown in
trading activities due to the outbreak of the Covid-19 pandemic in 2020; (iii) the recognition
of impairment losses in respect of the Group's interest in Saike International of approximately
HKD 29.9 million for fiscal year 2020 (fiscal year 2019: approximately HKD 20.9 million); (iv) the
recognition of an expected credit loss allowance of approximately HKD 32.7 million on the
Group's trade and other receivables for fiscal year 2020 (fiscal year 2019: approximately HKD 9.0 million)
due to an expected increase in uncertainty over the repayment of long outstanding trade and
other receivables of the Group; and (v) the recognition of impairment losses on asset held for
sale of approximately HKD 7.6 million for fiscal year 2020 (fiscal year 2019: nil).