Gongdong Medical achieves net income of CNY 308 million in the first three quarters of 2022

In the first three quarters of 2022, Gongdong Medical achieved revenue of CNY 1.18 billion, an increase of 39.32% year-on-year; net profit of CNY 308 million, an increase of 22.42% year-on-year; net profit of CNY 306 million, an increase of 28.84% year-on-year. Gongdong Medical intends to acquire the core assets of Trademark Plastics Inc. ("TPI") with its own or self-financed capital of $45 million.

Gongdong Medical's Q3 revenue exceeded expectations, solidifying full-year performance expectations and is expected to exceed guidance. In a single quarter, 22Q3 revenue of CNY 381 million, up 40.63% year-on-year, net profit of CNY 98 million, up 30.72% year-on-year, net profit of CNY 101 million, up 36.26% year-on-year, mainly driven by the company's domestic IVD supporting business and foreign OEM/ODM business growth. With the epidemic easing in Q3, the company still achieved more than 40% growth in a single quarter, reflecting the company's strong growth ability, laying a solid foundation for the company's full-year performance guidance, and laying a solid foundation for growth in the next few years.

Gongdong Medical's strategic acquisition of the United States TPI company to accelerate the layout of overseas business. TPI was established in 1989 and produces more than 300 different kinds of polymer disposable medical supplies and medical components for many famous medical device manufacturers around the world, with rich experience in technology, process and quality control, and strong synergy with the company's business in channels, customers and production. The acquisition of TPI will not only realize the layout of production capacity in the U.S. market and provide localized services for customers in the U.S. market, but also has great significance to the company in terms of technology and process improvement, quality control, supporting business of global famous medical device manufacturers and expansion of product lines, etc. It is expected to accelerate the expansion of overseas large customers.