YANGZHOU, China, Sept. 20, 2024 /PRNewswire/ -- Meihua International Medical Technologies Co., Ltd. ("MHUA" or the "Company") (NASDAQ:MHUA), a reputable manufacturer and provider of Class I, II, and III disposable medical devices with operating subsidiaries in China, today reported its unaudited financial results for the six months ended June 30, 2024. All amounts below are in U.S. dollars.
First Half 2024 Unaudited Financial Metrics:
Revenues was approximately $45.3 million for the six months ended June 30, 2024.
Gross profit was approximately $15.2 million for the six months ended June 30, 2024.
Gross margin was approximately 33.5% in the six months ended June 30, 2024.
Income from operations was approximately $5.9 million for the six months ended June 30, 2024.
Net income was approximately $4.7 million for the six months ended June 30, 2024.
Mr. Yongjun Liu, Chairman of the Company, commented, "In the first half of 2024, we have been actively transitioning toward the high-end medical device industry, which is reflected in our financial results. Our total revenue for the first half of 2024 was $45.3 million, with a gross profit of $15.2 million and a gross margin of 33.5%. Given the overall economic slowdown during this period, we are pleased with these results. While these headwinds have impacted our short-term profit, they underscore the need to strengthen our operational resilience and focus on long-term sustainability. Currently, we are actively optimizing our product mix, increasing our focus on high-margin, high-quality consumables, and expanding our premium medical products portfolio. At the same time, we are reinforcing our upstream and downstream supply chains with the goal of achieving greater efficiency. The integration of AI capabilities not only drives innovation and operational improvements within our company but also enhances the products we deliver to business partners, positioning us to offer advanced, intelligent solutions across the market. In particular, our Speed Fox warehouse management and logistics platform was launched in May, and we participated in the world's second-ever remote robotic lobectomy in July."
"In addition, the construction of our integrated medical industrial park in Hainan is progressing well, and we expect it to further support our long-term growth objectives. We are confident this project, along with our other innovations and developments, will enhance our competitiveness and set a strong foundation for future financial performance."
"In line with our confidence in the Company's long-term prospects, we have initiated a $3 million share repurchase plan, reflecting our belief in the underlying value of our business. This decision underscores our commitment to creating shareholder value while maintaining a disciplined approach to capital allocation. Despite the short-term hurdles, we believe we are well-positioned to navigate this period of uncertainty and build sustainable growth in the coming quarters."
First Half 2024 Unaudited Financial Results:
Revenues
Revenues decreased slightly by approximately $2.9 million, or 5.9% to approximately $45.3 million for the six months ended June 30, 2024, from approximately $48.2 million in the same period of fiscal year 2023. The decrease in revenues was primarily driven by a decline in demand for customer orders, which we attributed to the stalling recovery of China's economy.
Cost of revenues
Cost of revenues primarily included the cost of materials, direct labor expenses, overhead, and other related incidental expenses that are directly attributable to the Company's principal operations. Cost of revenues decreased by approximately $0.9 million, or 2.8%, ...
