Meihua International Medical Technologies Co Ltd. Reports Unaudited 2023 First Half Financial Results.

YANGZHOU, China: 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, 2023. All amounts below are in U.S. dollars.

First Half 2023 Financial Metrics:

Revenues decreased by 12.1% to approximately $48.2 million for the six months ended June 30, 2023, from approximately $54.8 million in the same period of fiscal year 2022.

Gross profit decreased by 17.8% to approximately $17.2 million for the six months ended June 30, 2023, from approximately $20.9 million in the same period of fiscal year 2022.

Gross margin decreased from 38.1% in the six months ended June 30, 2022 to 35.6% in the six months ended June 30, 2023.

Income from operations increased by 4.9% to $9.1 million for the six months ended June 30, 2023, from $8.7 million for the six months ended June 30, 2022.

Net income increased by 7.3% to approximately $7.0 million for the six months ended June 30, 2023 from $6.6 million in the same period of fiscal year 2022.

For the six months ended June 30,

(in $ millions, except earnings per share; difference due to rounding)

2023

2022

% Change

Revenues

$ 48.2

$ 54.8

(12.1 %)

Gross profit

$ 17.2

$ 20.9

(17.8 %)

Gross margin

35.6 %

38.1 %

(2.5 percentage point)

Income from operation

$ 9.1

$ 8.7

4.9 %

Net income

$ 7.0

$ 6.6

7.3 %

Net income per share - Basic and Diluted

$ 0.29

$ 0.29

0.0 %

Mr. Yongjun Liu, Chairman of the Company, commented: "With a rich legacy spanning over three decades, we have forged enduring partnerships with 334 distributors across Europe, North America, Asia, South America, Africa, and Oceania. We believe that this extensive network empowers us to cater to the discerning clientele on a global scale. Domestically, we have established a formidable presence, leveraging a robust network of 3,159 distributors nationwide to propel our brand. Moreover, we believe that our strategic collaborations with over 531 hospitals and direct sales channels have further propelled our market penetration, solidifying our influence."

While we experienced a temporary downturn in revenue for the period ended June 30, 2023, our overall financial performance remains resilient. In the first half of 2023, we achieved revenues of $48.2 million, exhibiting a slight decrease from the corresponding period in...