Medical device maker China Medical Technologies Inc. said Friday its fiscal-fourth quarter profit fell 82 percent as the company cut prices.
China Medical Technologies said its profit fell to 9.1 million renminbi ($1.3 million) from 49.4 million renminbi. It said it earned 0.35 renminbi (5 cents) per American Depositary Share from continuing operations. The company cut the price of reagents during the fiscal year, and its revenue fell 29 percent, to 175.7 million renminbi ($25.7 million) from 248.6 million renminbi.
The company's fiscal fourth quarter ended March 31.
The Chinese company said immunodiagnostic system sales dropped 46 percent, to 74.8 million renminbi ($10.9 million), because of the reduced prices. Molecular diagnostic system revenue fell 8 percent to 100.9 million renminbi ($14.8 million). Sales and marketing costs jumped as the company increased its direct sales efforts on molecular systems.
For the fiscal year, China Medical Technologies said it lost 57 million renminbi ($8.3 million), compared with a profit of 334.8 million renminbi a year earlier. Its revenue fell 13 percent to 723.1 million renminbi ($105.8 million).
The company expects revenue of at least 185 million renminbi ($27.1 million) in the fiscal first quarter, which ends June 30.