WORK Medical Technology Group LTD Reports Financial Results for Fiscal Year 2024
Rhea-AI Summary
WORK Medical Technology Group (Nasdaq: WOK) reported financial results for fiscal year 2024, showing a 15.2% decrease in net revenue to $11.5 million from $13.6 million in FY2023. The decline was primarily due to a 69.4% decrease in mask sales to $1.6 million. However, sales of medical devices excluding masks increased by 17.7% to $9.4 million, while commodity trading grew by 33.9%.
The company reported a net loss of $3.5 million in FY2024, compared to a net income of $0.06 million in FY2023. Operating expenses increased significantly to $6.9 million, with selling expenses up 31.0% and general administrative expenses rising 144.8%. The company's cash position strengthened to $6.6 million, up from $1.6 million, partly due to its IPO of 2,000,000 ordinary shares at $4.00 per share completed on August 26, 2024.
Positive
- Medical devices sales (excluding masks) increased 17.7% to $9.4 million
- Commodity trading revenue grew 33.9%
- Cash and cash equivalents increased to $6.6 million from $1.6 million
- Successfully completed IPO raising funds at $4.00 per share
Negative
- Net revenue decreased 15.2% to $11.5 million
- Mask sales declined 69.4% to $1.6 million
- Net loss of $3.5 million compared to net income of $0.06 million in FY2023
- Gross profit margin decreased to 24.9% from 30.5%
- Operating expenses increased significantly by $3.2 million to $6.9 million
- General and administrative expenses increased 144.8%
News Market Reaction 1 Alert
On the day this news was published, WOK declined 2.56%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Mr. Shuang Wu, Chairman and Chief Executive Officer of WORK Medical, remarked, "We are pleased to report our Company's performance for the fiscal year ended September 30, 2024. As the lingering effects of COVID-19 gradually subside and the global business environment returns to normal, our net revenue reflects a decline primarily due to a
Fiscal Year 2024 Financial Results
Net Revenue
Net revenue was
For the Year Ended, | |||||
($ millions) | |||||
2024 | 2023 | ||||
Masks | $ 1.6 | $ 5.1 | |||
Medical devices other than masks | 9.4 | 8.0 | |||
Commodity trading | 0.4 | 0.3 | |||
Others | 0.1 | 0.2 | |||
Net revenue | $ 11.5 | $ 13.6 | |||
- Revenue of sales of masks was
$1.6 million 69.4% from$5.1 million - Revenue of sales of medical devices other than masks was
$9.4 million 17.7% from$8.0 million - Revenue of commodity trading was
$0.4 million 33.9% from$0.3 million - Revenue of sales of others was
$0.1 million $0.2 million
Cost of Revenue
Cost of revenue was
Gross Profit
Gross profit was
Gross profit margin was
Operating Expenses
Operating expenses were
- Selling expenses were
$2.1 million 31.0% from$1.6 million - General and administrative expenses were
$4.6 million 144.8% from$1.9 million U.S. public company. - Research and development expenses were
$0.30 2 million0.3% from$0.30 1 million
Net (Loss) Income
Net loss was
Basic and Diluted Earnings (Loss) per Share
Basic and diluted loss per share was
Financial Condition
As of September 30, 2024, the Company had cash and cash equivalents of
Net cash used in operating activities was
Net cash used in investing activities was
Net cash provided by financing activities was
Recent Development
On August 26, 2024, the Company completed its initial public offering of 2,000,000 ordinary shares at a public offering price of
About WORK Medical Technology Group LTD
WORK Medical Technology Group LTD is a supplier of medical devices that develops and manufactures Class I and II medical devices and sells Class I and II disposable medical devices through operating subsidiaries in
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct. The Company cautions investors that actual results may differ materially from the anticipated results, and encourages investors to read the risk factors contained in the Company's registration statement and other reports it files with the
For investor and media inquiries, please contact:
WORK Medical Technology Group LTD
Investor Relations Department
Email: ir@workmedtech.com
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
WORK MEDICAL TECHNOLOGY GROUP LTD (In | ||||||||
As of September 30, | ||||||||
2024 | 2023 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 6,557,605 | $ | 1,596,096 | ||||
Restricted cash | - | 41,187 | ||||||
Cash deposited in escrow account | 400,000 | - | ||||||
Accounts receivable, net | 1,648,797 | 3,332,322 | ||||||
Inventories, net | 3,183,951 | 4,620,191 | ||||||
Amounts due from related parties | 2,707,136 | 4,237,682 | ||||||
Advance to suppliers | 4,697,029 | 3,469,819 | ||||||
Prepaid expenses and other current assets, net | 1,632,702 | 4,855,381 | ||||||
Total current assets | 20,827,220 | 22,152,678 | ||||||
Property, plant and equipment, net | 11,372,485 | 6,626,774 | ||||||
Intangible assets, net | 1,044,062 | 998,450 | ||||||
Right-of-use assets, net | - | 114,127 | ||||||
Deferred tax assets, net | 112,916 | 66,872 | ||||||
Advance to suppliers for equipment | 2,893,880 | - | ||||||
Total non-current assets | 15,423,343 | 7,806,223 | ||||||
TOTAL ASSETS | $ | 36,250,563 | $ | 29,958,901 | ||||
Liabilities | ||||||||
Current liabilities: | ||||||||
Short-term bank borrowings | $ | 13,323,643 | $ | 8,840,461 | ||||
Accounts payable | 1,497,152 | 3,961,827 | ||||||
Deferred revenue | 625,326 | 776,210 | ||||||
Amount due to related parties | 1,217,442 | 159,612 | ||||||
Accrued expenses and other liabilities | 3,007,901 | 4,398,596 | ||||||
Lease liabilities, current | - | 49,560 | ||||||
Income tax payable | 508,726 | 736,590 | ||||||
Total current liabilities | 20,180,190 | 18,922,856 | ||||||
Lease liabilities, non-current | - | 50,130 | ||||||
Total non-current liabilities | - | 50,130 | ||||||
TOTAL LIABILITIES | $ | 20,180,190 | $ | 18,972,986 | ||||
Shareholders' equity | ||||||||
Ordinary Shares (par value of | $ | 7,296 | $ | 6,250 | ||||
Subscription receivable | (6,250) | (6,250) | ||||||
Additional paid-in capital | 6,617,596 | 85,012 | ||||||
Statutory reserve | 899,731 | 887,482 | ||||||
Retained earnings | 6,076,018 | 9,580,585 | ||||||
Accumulated other comprehensive loss | (408,465) | (676,828) | ||||||
Total shareholders' equity | 13,185,926 | 9,876,251 | ||||||
Non-controlling interests | 2,884,447 | 1,109,664 | ||||||
Total equity | 16,070,373 | 10,985,915 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 36,250,563 | $ | 29,958,901 | ||||
* | The shares and per share information are presented on a retroactive basis to reflect the reorganization |
WORK MEDICAL TECHNOLOGY GROUP LTD CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE LOSS (In | ||||||||||||
For the years ended | ||||||||||||
2024 | 2023 | 2022 | ||||||||||
Net revenue from third parties | $ | 10,929,070 | $ | 12,501,615 | $ | 19,498,315 | ||||||
Net revenue from related party | 577,370 | 1,064,336 | 212,975 | |||||||||
Cost of revenues from third parties | (8,346,419) | (8,596,872) | (15,197,213) | |||||||||
Cost of revenue from related party | (291,635) | (826,095) | (95,285) | |||||||||
Gross profit | 2,868,386 | 4,142,984 | 4,418,792 | |||||||||
Operating expenses: | ||||||||||||
Selling expenses | (2,053,019) | (1,567,385) | (1,032,685) | |||||||||
General and administrative expenses | (4,558,041) | (1,861,728) | (2,563,879) | |||||||||
Research and development expenses | (302,511) | (301,644) | (183,900) | |||||||||
Total operating expenses | (6,913,571) | (3,730,757) | (3,780,464) | |||||||||
Other (loss) income: | ||||||||||||
Interest expense | (557,571) | (392,741) | (352,968) | |||||||||
Interest income | 11,727 | 25,417 | 1,969 | |||||||||
Government subsidies | 346,571 | 74,232 | 1,186,641 | |||||||||
Other income(expenses), net | 578,758 | (8,746) | (360,409) | |||||||||
Total other income(loss) | 379,485 | (301,838) | 475,233 | |||||||||
(Loss) income before income tax expense | (3,665,700) | 110,389 | 1,113,561 | |||||||||
Income tax benefit (expense) | 125,291 | (47,006) | (169,435) | |||||||||
Net (loss) income | $ | (3,540,409) | $ | 63,383 | $ | 944,126 | ||||||
Net (loss) income attributable to non-controlling interest | (48,091) | (48,647) | 78,916 | |||||||||
Net (loss) income attributable to ordinary shareholders | $ | (3,492,318) | $ | 112,030 | $ | 865,210 | ||||||
Other comprehensive loss: | ||||||||||||
Foreign currency translation adjustment | 453,181 | (268,068) | (1,147,710) | |||||||||
Total comprehensive loss | (3,087,228) | (204,685) | (203,584) | |||||||||
Total comprehensive income (loss) attributable to non- | 136,727 | (80,165) | (164,329) | |||||||||
Total comprehensive loss attributable to shareholders | $ | (3,223,955) | $ | (124,520) | $ | (39,255) | ||||||
Weighted average number of Ordinary Shares | ||||||||||||
Basic and Diluted* | 12,705,011 | 12,500,000 | 12,500,000 | |||||||||
Basic and diluted (loss) earnings per ordinary share | (0.27) | 0.01 | 0.07 | |||||||||
* The shares and per share information are presented on a retroactive basis to reflect the reorganization |
WORK MEDICAL TECHNOLOGY GROUP LTD (In | ||||||||||||
For the years ended | ||||||||||||
September 30, | ||||||||||||
2024 | 2023 | 2022 | ||||||||||
CASH FLOWS FROM OPERATING | ||||||||||||
Net (loss) income | $ | (3,540,409) | $ | 63,383 | $ | 944,126 | ||||||
Adjustments to reconcile net loss to net cash used | ||||||||||||
Depreciation and amortization | 1,410,452 | 1,603,129 | 3,258,267 | |||||||||
Inventories write-down | 762 | 18,320 | (117,327) | |||||||||
Gain (loss) on disposal of equipment | 42,504 | 8,089 | (10,871) | |||||||||
Allowance for credit loss | 262,446 | 149,503 | 1,108,999 | |||||||||
Deferred tax benefits | (46,044) | (94,533) | (314,008) | |||||||||
Changes in assets and liabilities: | ||||||||||||
Accounts receivable – third parties | 1,815,361 | (131,950) | (4,234,997) | |||||||||
Accounts receivable – related party | — | — | 275,993 | |||||||||
Advance to suppliers | (1,061,321) | 977,318 | (191,774) | |||||||||
Amount due (from) to related parties | 1,775,923 | (3,964,077) | 743,490 | |||||||||
Inventories | 1,576,799 | (400,544) | 2,053,675 | |||||||||
Operating lease liabilities | (2,029) | (51,755) | (5,212) | |||||||||
Prepaid expenses and other current assets | 293,683 | 1,291,145 | (194,118) | |||||||||
Accounts payable | (2,553,902) | 864,585 | (5,822,547) | |||||||||
Income taxes payable | (250,423) | 136,508 | 81,428 | |||||||||
Deferred revenue | (176,969) | 52,245 | (751,375) | |||||||||
Accrued expenses and other liabilities | (1,524,631) | 1,688,370 | 917,303 | |||||||||
Net cash (used in) provided by operating activities | (2,228,087) | 2,209,736 | (2,258,948) | |||||||||
CASH FLOWS FROM INVESTING | ||||||||||||
Purchase of intangible asset | (33,313) | (127,913) | — | |||||||||
Purchase of property and equipment | (9,225,094) | (455,391) | (2,012,546) | |||||||||
Proceed from disposal of property and equipment | 194,328 | — | 601,760 | |||||||||
Cash acquired from Shanghai Saitumofei | — | — | 63,621 | |||||||||
Net cash used in investing activities | (9,064,079) | (583,304) | (1,347,165) | |||||||||
CASH FLOWS FROM FINANCING | ||||||||||||
Proceeds from initial public offering | 7,373,839 | — | — | |||||||||
Cash deposited in escrow account | (400,000) | — | — | |||||||||
Contributions from non-controlling interest | 2,767,032 | — | — | |||||||||
Proceeds from short-term borrowings | 13,394,778 | 9,107,082 | 7,248,367 | |||||||||
Repayments of short-term borrowings | (9,369,404) | (6,000,791) | (7,248,367) | |||||||||
Loans to related parties | (4,574,088) | (5,669,834) | (9,493,121) | |||||||||
Repayment from related parties | 5,477,054 | 5,891,373 | 13,260,930 | |||||||||
Loans to third parties | (1,133,656) | (2,723,935) | (1,030,628) | |||||||||
Repayment from loans to third parties | 2,734,478 | 23,562 | 829,042 | |||||||||
Payment of offering cost | (613,009) | (1,356,176) | — | |||||||||
Net cash provided by (used in) financing | 15,657,024 | (728,719) | 3,566,223 | |||||||||
Effect of exchange rate changes | 555,464 | (33,852) | (59,819) | |||||||||
Net increase (decrease) in cash and restricted cash | 4,920,322 | 863,861 | (99,709) | |||||||||
Cash, cash equivalents, and restricted cash, at | 1,637,283 | 773,422 | 873,131 | |||||||||
Cash, cash equivalents and restricted cash, at end | $ | 6,557,605 | $ | 1,637,283 | $ | 773,422 | ||||||
Reconciliation to amounts on consolidated | ||||||||||||
Cash and cash equivalents | 6,557,605 | 1,596,096 | 731,178 | |||||||||
Restricted cash | - | 41,187 | 42,244 | |||||||||
Total cash, cash equivalents and restricted cash | 6,557,605 | 1,637,283 | 773,422 | |||||||||
SUPPLEMENTAL DISCLOSURE OF CASH | ||||||||||||
Income taxes paid | 9,973 | $ | 160,162 | $ | 340,024 | |||||||
Interest paid | 543,753 | $ | 312,035 | $ | 312,282 | |||||||
View original content:https://www.prnewswire.com/news-releases/work-medical-technology-group-ltd-reports-financial-results-for-fiscal-year-2024-302377075.html
SOURCE WORK Medical Technology Group LTD
FAQ
What caused WOK's revenue decline in fiscal year 2024?
How much did WOK's medical device sales grow in FY2024?
What was WOK's net loss in fiscal year 2024?
When did WOK complete its IPO and at what price?
How much cash did WOK have as of September 30, 2024?
