Analysis Report on Staff Changes and Profit Sustainability of Jiu'an Medical

First, it should be clarified that according to the 2024 financial data of Jiu’an Medical (002432.SZ), the company

but showed a significant downward trend [0]:

Indicator	2022	2023	2024	YoY Change
Operating Revenue (RMB 100 million)	259.2	32.3	25.9	-19.8%
Net Profit Attributable to Shareholders (RMB 100 million)	16.0	1.2	0.6	-50.0%
Net Profit Margin	6.17%	3.72%	2.32%	-1.4pct

The ‘profit growth’ mentioned in the user’s question may stem from a misunderstanding of short-term profit improvement brought by cost cuts, or focus on specific financial indicators (such as gross profit margin, operating profit margin) [1]. However, from the perspective of overall profitability, the company is facing pressure of

.

---

Jiu’an Medical has shown a differentiated feature of**‘increase in R&D personnel, decrease in others’**during staff optimization [2]:

Staff Category	2023	2024	Change Rate
Total R&D Personnel	528	614	+16.3%
Proportion of R&D Personnel	28.93%	49.28%	+20.35pct
Bachelor’s Degree Holders	393	483	+22.9%
Master’s Degree Holders	98	90	-8.2%
R&D Personnel Under 30 Years Old	183	252	+37.7%

This change indicates that the company is

to reserve talents for future product innovation.

In contrast to the increase in R&D personnel, overall expense spending has been drastically cut [3]:

Expense Item	2023	2024	YoY Change
R&D Investment (RMB 100 million)	2.93	2.65	-9.3%
Sales Expense-Related Compensation (RMB 10,000)	1491.7	465.5	-68.7%
Sales Expenses (RMB 100 million)	1.73	1.19	-31.2%
General and Administrative Expenses (RMB 100 million)	2.56	2.05	-19.9%

: Cost compression features**‘prioritizing sales cuts over R&D cuts’**— the magnitude of the reduction in sales expenses is much larger than that of R&D expenses, which may affect market expansion capabilities.

---

Indicator	2022	2023	2024
Per Capita Revenue Generated by R&D Personnel (RMB 100 million)	5.76	0.61	0.42
Decline Rate	-	-89.4%	-31.1%

Per capita revenue plummeted from RMB 576 million in 2022 to RMB 42 million in 2024, a drop of 93%, indicating that

[4].

According to the 2024 annual report [2]:
-

revenue accounts for 86.79%, a slight decrease from 90.13% in 2023
-revenue grew by 104.68%, but the absolute amount was only RMB 76.16 million

• Revenue sources are still highly dependent on COVID-19 test kit-related products

This

makes the company’s performance highly dependent on specific market demand, and the 2022 revenue peak was mainly driven by pandemic dividends.

Analysis Dimension	2023	2024	Trend Judgment
Expense Ratio	11.7%	4.1%	Declining, but the base is already low
Net Profit Margin	3.72%	2.32%	Continued decline
Expense/Revenue Elasticity	-0.72	-0.26	The impact of expenses on profit weakens

As the expense base decreases,

, making it difficult to sustain profit levels through cost reduction [5].

---

Risk Type	Specific Performance	Impact Level
Market Demand Risk	Sharp decline in demand for test kits (2024 revenue down 22.75% YoY)	High
Single Product Risk	iHealth series still accounts for over 86%	High
Exchange Rate Risk	US dollar-denominated assets of RMB 21.6 billion; a 10% fluctuation in the RMB exchange rate affects RMB 216.7 million in net assets	Medium-High
Investment Volatility Risk	Floating loss of RMB 160 million from new energy vehicle stock investments	Medium
Cash Flow Risk	Monetary funds of RMB 863 million are insufficient to cover short-term borrowings of RMB 1.35 billion	Medium

1.

: R&D expense ratio increased to 10.24% (+1.18pct), providing a foundation for new product development
2.: Internet medical business grew 104.68% YoY
3.: Deployed in approximately 50 cities and over 320 hospitals nationwide
4.: Triple test kit obtained FDA EUA certification

---

Jiu’an Medical’s ‘staff optimization’ did not bring profit growth; instead, it showed a trend of

. The sustainability of profit growth is, mainly due to the following reasons:

1.

: Sales expenses have been drastically cut; further compression will affect market expansion capabilities
2.: Revenue from core products continues to shrink, and the scale of new businesses is insufficient to make up for the gap
3.: The increase in staff numbers and the decline in per capita revenue generation form a scissors gap
4.: Performance is affected by multiple factors such as exchange rates, investment returns, and market demand

Evaluation Dimension	Score	Explanation
Sustainability of Profitability	★★☆☆☆	Net profit continues to decline, limited room for cost compression
Health of Business Structure	★★☆☆☆	Over-reliance on a single product, insufficient proportion of new businesses
Cash Flow Status	★★★☆	Short-term debt repayment pressure exists, financial asset allocation is diversified
Growth Potential	★★☆☆☆	Lack of a clear growth engine

:

Jiu’an Medical is currently facing core challenges from the growing pains of transforming from a ‘pandemic beneficiary stock’ to a ‘conventional medical device enterprise’. In the short term, cost compression cannot fully offset the impact of revenue decline; in the medium to long term, whether the company can achieve breakthroughs in new fields such as diabetes management and internet medical care will determine whether its future profitability can truly resume growth.

---

[0] Jinling AI Financial Database - Jiu’an Medical (002432.SZ) Financial Data
[1] Sina Finance - Jiu’an Medical 2024 Annual Report
[2] CNINFO - Full Text of Jiu’an Medical 2024 Annual Report
[3] CNFO - “After Making Billions, Jiu’an Medical Falls from the Pedestal”
[4] Eastmoney.com - Individual Stock Data of Jiu’an Medical
[5] Tianjin Jiu’an Medical Electronics Co., Ltd. 2025 Semi-Annual Report

---