CHANGZHOU, China, Aug. 4, 2026 /PRNewswire/ -- JIN MEDICAL INTERNATIONAL LTD. (Nasdaq: ZJYL) ("Jin Medical", and together with all its subsidiaries and consolidated entities, the "Company"), a NASDAQ-listed leading provider of rehabilitation medical equipment in China, today announced its unaudited financial results for the six months ended March 31, 2026.
Mr. Erqi Wang, Chairman of the Board of Directors and Chief Executive Officer of the Company, commented, "During the first half of fiscal year 2026, our revenue was affected by lower sales of other products and temporary foreign-exchange pressure on orders from our largest Japanese customer. Nevertheless, revenue from our core wheelchair products remained relatively stable, wheelchair component sales increased, and our gross margin improved to 26.9% as we continued to enhance inventory management and operating efficiency. We also increased investment in research and development to support product innovation and long-term growth. With $9.1 million in cash and $21.0 million in short-term investments as of March 31, 2026, we believe we maintain a solid financial position. Looking ahead, we will remain focused on strengthening our core product portfolio, expanding our customer base in China and overseas, advancing our production capacity, and exercising disciplined cost and working-capital management to navigate near-term market challenges and pursue sustainable growth."
First Half of Fiscal Year 2026 Financial Summary
-- Total revenue was $8.9 million for the six months ended March 31, 2026,
decreased by 9.7% from $9.9 million for the same period of last year.
-- Gross profit remained relatively stable at $2.4 million for the six
months ended March 31, 2026 and 2025.
-- Gross margin was 26.9% for the six months ended March 31, 2026, compared
to 24.3% for the same period of last year.
-- Net loss was $0.2 million for the six months ended March 31, 2026,
compared to net income of $0.01 million for the same period of last year.
-- Basic and diluted loss per share were $0.01 for the six months ended
March 31, 2026 and 2025.
First Half of Fiscal Year 2026 Financial Results
Revenue
Total revenue was $8.9 million for the six months ended March 31, 2026, decreased by 9.7% from $9.9 million for the same period of last year.
For the Six Months Ended March 31,
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2026 2025
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Cost of Gross Cost of Gross
($ millions) Revenue Revenue Margin Revenue Revenue Margin
------------- -------- ------- ------ ------- ------- ------
Wheelchair 7.1 5.2 27.3% 7.3 5.5 23.7%
Wheelchair
components 1.1 0.8 28.7% 1.0 0.8 24.2%
Other products 0.7 0.5 19.0% 1.6 1.2 27.0%
------- ------- ------- -------
Total 8.9 6.5 26.9% 9.9 7.5 24.3%
======= ======= ======= =======
Revenue from wheelchair products remained relatively stable with a slight decrease of 1.4%, from $7.3 million for the six months ended March 31, 2025 to $7.1 million for the six months ended March 31, 2026. The decrease was mainly due to decreased sales of wheelchair products to our largest customer Nissin in Japan. Nissin purchases wheelchair products from us in RMB and sells them in Japanese Yen in Japan. However, due to the weakening of the Japanese Yen, profitability of Nissin was negatively impacted as their cost of wheelchair products increased. As a result, sales orders we received from Nissin decreased, and total sales to Nissin and its subsidiaries decreased by approximately $84,000 during the six months ended March 31, 2026. The management expects the impact of foreign currency fluctuation on our revenue from Nissin is temporary.
Revenue from wheelchair components increased by 9.9%, to $1.1 million for the six months ended March 31, 2026 from $1.0 million for the same period of last year. The increase was mainly due to more sales orders of wheelchair components we received during the six months ended March 31, 2026. Wheelchair components are ordered by our customers for their repair and maintenance purposes, and such orders fluctuate based on their estimated further demands.
Revenue from other products decreased by 59.1%, to $0.7 million for the six months ended March 31, 2026 from $1.6 million for the same period of last year. The decrease was mainly due to the decreased revenue of approximately $0.8 million from electric scooters, as the Company failed to obtain relevant qualifications and sales of electric scooters was ceased for the six months ended March 31, 2026.
Cost of Revenue and Related Tax
Cost of revenue and related tax decreased by 12.8%, to $6.5 million for the six months ended March 31, 2026, from $7.5 million for the same period of last year.
Gross Profit and Gross Margin
Gross profit remained relatively stable at $2.4 million for the six months ended March 31, 2026 and 2025.
Gross margin increased to 26.9% for the six months ended March 31, 2026, from 24.3% for the same period of last year. The increase was primarily attributable to higher variable costs for our standard and economy wheelchair products in the prior-year comparable period, when the Company utilized certain high-unit-price components without corresponding selling price increases to improve inventory turnover efficiency.
Operating Expenses
Operating expenses were $3.0 million for the six months ended March 31, 2026, compared to $2.9 million for the same period of last year.
-- Our selling expenses decreased by 4.7%, to $0.71 million for the six
months ended March 31, 2026, from $0.75 million for the same period of
last year. The decrease was primarily attributable to lower exhibition
expenses resulted from fewer trade show participations.
-- Our general and administrative expenses remained relatively stable at
$1.4 million for the six months ended March 31, 2026 and 2025.
-- Our research and development expenses increased by 33.4%, to $0.9 million
for the six months ended March 31, 2026, from $0.7 million for the same
period of last year. The increase is primarily attributable to the
increased research and development activities towards products
development, and we invested in more manpower and materials during the
six months ended March 31, 2026.
Other Income, Net
Our net other income increased by 344.5%, to $0.5 million for the six months ended March 31, 2026, from $0.1 million for the same period of last year. The increase in net other income was mainly due to higher government grants, consisting primarily of fixed asset investment subsidies for the factory construction project of our subsidiary Anhui Zhongjin.
Net Income (Loss)
Net loss was $0.2 million for the six months ended March 31, 2026, compared to net income of $0.01 million for the same period of last year.
Basic and Diluted Loss per Share
Basic and diluted loss per share were $0.01 for the six months ended March 31, 2026 and 2025.
Financial Condition
As of March 31, 2026, the Company had $9.1 million in cash as compared to $7.5 million as of September 30, 2025, and $21.0 million in short-term investments as compared to $22.2 million as of September 30, 2025. As of March 31, 2026, the Company also had approximately $5.5 million of account receivable balance due from third parties. Approximately 36.3% of the March 31, 2026 balance has been subsequently collected, and the majority of the remaining balance is expected to be collected by March 31, 2027. The collection of such receivables made cash available for use in the Company's operations as working capital, if necessary.
Net cash used in operating activities was $0.9 million for the six months ended March 31, 2026, mainly derived from a net loss of $0.2 million for the period, and net changes in our operating assets and liabilities, which mainly included a decrease in prepaid expenses and other current assets of $1.2 million.
Net cash provided by investing activities amounted to $0.2 million for the six months ended March 31, 2026, and primarily included the redemption of short-term investments of $4.6 million, which were partially offset by the payments for short-term investments of $2.6 million, and purchase of property, plant and equipment and payment for construction in progress of $1.8 million.
Net cash provided by financing activities amounted to $2.1 million for the six months ended March 31, 2026, which primarily included proceeds from short-term bank loans of $13.5 million and proceeds from long-term bank loan of $2.8 million, which was partially offset by repayments of short-term bank loans of $14.9 million.
About JIN MEDICAL INTERNATIONAL LTD.
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