Digging up the shellfish net July 27. Recently, steady medical treatmentVenture BoardThe IPO was reviewed. The Shenzhen Stock Exchange then issued an implementation letter asking whether there was a growth rate in its net profitsustainableAdditional risk disclosure.

On July 23, the GEM Listing Committee held its 7th review meeting in 2020. The audit results showed that Wenjian Medical Products Co., Ltd. (“Robust Healthcare” for short) met the issuance conditions, listing conditions and information disclosure requirements. The Shenzhen Stock Exchange requires Robust Healthcare to further disclose in the “Risk Factors” section of the prospectus that there is an unsustainable risk of net profit growth.

On July 27, Robust Healthcare responded to the implementation letter stating that from January to June 2020, the company achieved operating income of 4.18 billion yuan, an increase of 98.52% over the previous year; it achieved net profit attributable to owners of the parent company of 1,032 million yuan, an increase of 348.92% over the previous year.

In response, Robust Medical said that it was mainly affected by the epidemic and the company's sales of medical protective products such as medical masks and protective clothing increased dramatically in the first half of 2020. During the pandemic, the company's brand awareness was further enhanced and sales channels were further broadened. In the medium to long term, the company's performance growth was sustainable. However, with the progress of epidemic prevention and control and the increase in production capacity and competition for epidemic prevention materials products in the market, there is some uncertainty about whether the company's sales of medical protective products will continue to grow sharply, and there is a risk that the growth rate of net profit will not be sustainable in the short term.