Revenue Growth - Revenue for the six months ended June 30, 2023, increased by 29.2% to approximately RMB 2,437.96 million compared to RMB 1,887.65 million for the same period in 2022[2] - The specialty pharmacy business generated revenue of RMB 2,158.76 million, reflecting a growth of 31.1% year-on-year[2] - The health insurance services business reported revenue of RMB 108.69 million, an 18.0% increase compared to RMB 92.11 million in the previous year[2] - Total revenue for the company reached approximately RMB 2,437.96 million, reflecting a year-on-year increase of about 29.2% from RMB 1,887.65 million[9] - Revenue for the six months ended June 30, 2023, was RMB 2,437,956 thousand, representing an increase of 29.1% compared to RMB 1,887,652 thousand for the same period in 2022[32] - The revenue breakdown includes RMB 2,158,757 thousand from the specialty pharmacy business, RMB 170,506 thousand from physician research assistance, and RMB 108,693 thousand from health insurance services[42][47] Profitability and Loss - Adjusted net loss for the six months ended June 30, 2023, decreased by 76.8% to RMB 33.19 million from RMB 143.11 million in the previous year[2] - Gross profit for the period was RMB 218.09 million, representing a 23.3% increase from RMB 176.94 million in the same period last year[2] - The gross margin slightly decreased to approximately 8.9% from 9.4% in the previous year, primarily due to an increase in lower-margin wholesale business[14] - The company reported a net loss of RMB 87,307 thousand for the six months ended June 30, 2023, compared to a net loss of RMB 345,987 thousand for the same period in 2022, reflecting a significant reduction in losses[32] - The group recorded a loss before tax of RMB 86,698 thousand for the six months ended June 30, 2023, compared to a loss of RMB 344,441 thousand for the same period in 2022, showing a significant reduction in losses[42][44] - The group reported a loss attributable to ordinary equity holders of the parent of RMB (92,321) thousand for the six months ended June 30, 2023, compared to a loss of RMB (346,327) thousand for the same period in 2022, indicating a significant improvement[55] - The basic loss per share for the six months ended June 30, 2023, was RMB (0.14), compared to RMB (3.50) for the same period in 2022, reflecting a reduction in loss per share[55] Expenses and Cost Management - Research and development expenses decreased by 32.9% to RMB 22.22 million, accounting for 0.9% of total revenue[2] - Sales and marketing expenses decreased by approximately 5.3% to about RMB 152.05 million from RMB 160.61 million for the same period last year[15] - Administrative expenses significantly reduced by approximately 30.5% to about RMB 175.38 million from RMB 252.33 million, attributed to improved efficiency and reduced costs[16] - Research and development expenses decreased by approximately 30.4% to about RMB 23.86 million from RMB 34.29 million, reflecting the effectiveness of prior investments[17] - The total operating expenses for the period included sales and marketing expenses of RMB 152,050 thousand, administrative expenses of RMB 175,380 thousand, and R&D expenses of RMB 23,863 thousand[42] Financial Position - Cash and cash equivalents, along with specific financial assets, totaled RMB 1,492.34 million, up from RMB 1,444.72 million in the previous year[2] - As of June 30, 2023, the net current assets amounted to approximately RMB 1,441.59 million, with a debt-to-asset ratio of approximately 38.5%, up from 37.4% as of December 31, 2022[22] - Total cash and cash equivalents as of June 30, 2023, were approximately RMB 434.75 million, along with other financial products totaling approximately RMB 1,492.34 million[23] - The total current assets as of June 30, 2023, were RMB 2,535,779 thousand, a decrease from RMB 2,695,335 thousand as of December 31, 2022[34] - The total liabilities as of June 30, 2023, were RMB 1,811,577 thousand, slightly down from RMB 1,834,132 thousand as of December 31, 2022[35] Corporate Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions, except for the separation of the roles of Chairman and CEO, which are held by Mr. Ma Xuguang[62] - The company has not adopted a dividend policy as it intends to retain most, if not all, available funds for business development and growth[62] - The board believes that having the same person serve as both Chairman and CEO ensures consistent leadership and effective strategic planning[62] - The company has confirmed compliance with the standards of conduct for securities trading during the reporting period[63] - The independent auditor has reviewed the interim financial information in accordance with the relevant standards[65] Shareholder Actions - The company repurchased a total of 420,000 shares for a total amount of HKD 3,192,840 between July 21 and July 28, 2023[28] - The net proceeds from the global offering amounted to approximately HKD 120.4 million after deducting professional fees and related expenses[29]

Financial Performance - Revenue for the year ended December 31, 2022, was RMB 4,119,478, an increase of 18.6% from RMB 3,473,930 in 2021[20] - Gross profit for 2022 was RMB 337,352, up from RMB 283,449 in 2021, reflecting a gross margin improvement[20] - The loss for the year narrowed to RMB 1,371,764 in 2022 from RMB 3,748,503 in 2021, indicating a significant reduction in losses[20] - Adjusted loss for the year (non-IFRS measure) was RMB 258,682, compared to RMB 365,084 in 2021, showing improved operational efficiency[20] - Total revenue for the company reached approximately RMB 4,119.5 million in 2022, reflecting an 18.6% year-on-year growth from RMB 3,473.9 million in 2021[70] - The cost of sales increased by approximately 18.5% from approximately RMB 3,190.5 million in 2021 to approximately RMB 3,782.1 million in 2022, primarily due to increased procurement costs for medicines and labor costs[78] - Other income and gains rose by approximately 17.8% from approximately RMB 51.1 million in 2021 to approximately RMB 60.2 million in 2022, driven by increases in bank interest income and government grants[85] - Selling and marketing expenses increased by approximately 14.2% from approximately RMB 291.5 million in 2021 to approximately RMB 332.9 million in 2022, mainly due to higher staff costs[87] - Administrative expenses decreased by approximately 14.2% from approximately RMB 670.0 million in 2021 to approximately RMB 575.0 million in 2022, attributed to a reduction in staff costs[89] - Research and development expenses increased by approximately 5.9% from approximately RMB 59.2 million in 2021 to approximately RMB 62.7 million in 2022, primarily due to higher staff costs[90] Assets and Liabilities - Total assets as of December 31, 2022, were RMB 2,929,554, slightly up from RMB 2,892,819 in 2021[21] - Total liabilities decreased significantly to RMB 1,095,422 in 2022 from RMB 8,323,729 in 2021, indicating improved financial health[21] - Equity attributable to owners of the Company improved to RMB 1,836,901 in 2022 from a deficit of RMB 5,429,224 in 2021[21] - As of December 31, 2022, the company recorded net current assets of approximately RMB 1,640.0 million, with a gearing ratio of 37.4%, a substantial decrease from 287.7% in 2021[112] - The company had cash and cash equivalents of approximately RMB 1,455.5 million as of December 31, 2022, which is expected to satisfy future liquidity requirements[113] Business Operations - The company operates three business lines: specialty pharmacy, physician research assistance, and health insurance services, leveraging a robust technology platform[35] - In 2022, approximately 12.5 million Hui Min Insurance policies were sold, alongside over 400,000 annual enterprise health plans[41] - The company maintains a 100% retention rate for its top 10 SMO clients, measured by revenue, and collaborates with over 280 pharmaceutical and biotech clients[37] - The company has achieved 100% coverage of 27 provincial specialized oncology hospitals and 5 national cancer treatment centers, with over 55,000 doctors across 1,200 Class III Grade A hospitals nationwide[40] - The company aims to lower out-of-pocket medical costs while improving health conditions and healthcare service experiences for its members[31] - The company is committed to acquiring more members through scientific planning and careful management of premiums and medical expenses[31] - The company completed 468 SMO projects and had 795 ongoing projects as of December 31, 2022, maintaining a 100% client retention rate with top ten SMO clients[46][49] - The health service provider network connected over 1,200 Class III Grade A hospitals and 55,000 doctors across more than 150 major cities in China[50][53] Market Presence and Strategy - The Company aims to enhance its market presence through new product development and strategic partnerships in the health technology sector[24] - Future outlook includes a focus on expanding user data analytics capabilities to drive growth and improve service offerings[24] - The company is focused on expanding its market presence and developing new technologies in the healthcare sector[157] - The leadership team emphasizes the importance of strategic partnerships and acquisitions to drive growth[159] - The company aims to expand brand recognition and customer loyalty through strategic marketing and partnerships with medical institutions and pharmaceutical companies[61] - The three business lines—Specialty Pharmacy, Physician Research Assistance, and Health Insurance Services—create a symbiotic ecosystem that enhances customer traffic and business opportunities across segments[63] Corporate Governance and Leadership - The company is committed to maintaining high standards of corporate governance and financial transparency[168] - The company has a strong leadership team with extensive backgrounds in finance and investment, including Mr. Yao and Mr. Zhang, who have experience in major financial institutions[159][162] - The board includes members with significant academic and professional credentials, contributing to informed decision-making[173] - The company confirms that all directors do not hold any long or short positions in the shares or debentures of the company or any associated corporation[177] - There are no relationships between the directors and senior management or substantial shareholders that require disclosure[178] - All directors confirm they do not have any interests in businesses that compete with the company's business[178] Significant Events - The Company was listed on the Main Board of the Stock Exchange on December 23, 2022, marking a significant milestone[22] - The company disposed of its online hospital service on September 15, 2022, to improve operational efficiency and focus on core businesses[114] - On January 6, 2023, the company acquired an additional 45.00% equity interest in Smart Pharmacy for a total cash consideration of RMB3,218,000, increasing its ownership to 80.0%[141][144] - The principal place of business in Hong Kong has been changed to 14/F, Golden Centre, 188 Des Voeux Road Central, Hong Kong[150] - The company has appointed Ms. Li as the Joint Company Secretary and Authorized Representative effective March 13, 2023[150] - There were no significant events after the reporting period that require additional disclosures or adjustments[148] Employee and Workforce Management - The workforce size was optimized from 3,859 as of December 31, 2021, to 3,210 as of December 31, 2022, indicating a focus on operational efficiency[55] - As of December 31, 2022, the company employed a total of 3,210 employees, primarily in China, and maintains a competitive remuneration policy[131] - The company maintains competitive and fair compensation policies, conducting annual performance evaluations for employees[137] Research and Development - The company is focused on improving technology and digital infrastructure to support its operations and services across its business segments[59] - The company has established a national specialty drug management platform, enhancing its service offerings and differentiating it from peers[48] - The company has established the first and only nationwide specialty medicine management platform, offering follow-up assessment services under a unified system[200]

Financial Performance - Revenue for the year ended December 31, 2022, was RMB 4,119,478 thousand, representing an 18.6% increase from RMB 3,473,930 thousand in 2021[2] - Gross profit for the same period was RMB 337,352 thousand, reflecting a 19.0% increase compared to RMB 283,449 thousand in the previous year[2] - The net loss for the year was RMB (1,371,764) thousand, a 63.4% improvement from a net loss of RMB (3,748,503) thousand in 2021[2] - Adjusted net loss (non-IFRS measure) for the year was RMB (258,682) thousand, down 29.1% from RMB (365,084) thousand in the prior year[2] - Total revenue for 2022 reached approximately RMB 4,119.5 million, an increase of 18.6% compared to RMB 3,473.9 million in 2021[14] - The specialty pharmacy business generated revenue of RMB 3,661.8 million, up 16.7% from RMB 3,136.5 million in 2021, driven by an increase in store count from 91 to 96[15] - Revenue from the physician research assistance business rose by 30.5% to RMB 319.4 million, compared to RMB 244.9 million in 2021[16] - Health insurance services revenue surged by 49.3% to RMB 138.2 million, up from RMB 92.6 million in 2021, due to the expansion of corporate client business and new health insurance plans in various cities[16] - The gross margin for the specialty pharmacy business decreased slightly to 5.0% in 2022 from 5.9% in 2021, offset by an increase in the gross margin for health insurance services to 63.5%[18] - The basic and diluted loss per share for the year was RMB 12.19, down from RMB 37.61 in 2021, indicating improved performance on a per-share basis[41] Operational Efficiency - The company operates 96 specialty pharmacies across all provincial-level administrative regions in mainland China, excluding Tibet and Qinghai[6] - The company has completed 468 SMO projects and has 795 ongoing SMO projects, maintaining a 100% client retention rate among the top ten SMO clients[7] - The health service provider network connects over 1,200 tertiary hospitals, 55,000 doctors, and 500 health check institutions across more than 150 major cities in China[8] - The company optimized its workforce from 3,859 employees at the end of 2021 to 3,210 employees by the end of 2022, enhancing operational efficiency[10] - The company sold its internet hospital services on September 15, 2022, to improve operational efficiency and focus on core business[30] Financial Position - As of December 31, 2022, the net current assets were approximately RMB 1,640.0 million, with a debt-to-asset ratio of approximately 37.4%[29] - Cash and cash equivalents as of December 31, 2022, were approximately RMB 1,455.5 million[29] - Total assets as of December 31, 2022, amounted to RMB 2,929,554 thousand, compared to RMB 2,892,819 thousand in 2021, showing a slight increase[42] - Cash and cash equivalents increased to RMB 1,455,454 thousand in 2022 from RMB 535,849 thousand in 2021, indicating improved liquidity[42] - The company’s non-current liabilities decreased significantly to RMB 40,080 thousand in 2022 from RMB 7,492,929 thousand in 2021, primarily due to the elimination of convertible redeemable preferred shares[44] - The company had contract liabilities totaling RMB 901,000,000 as of December 31, 2022, down from RMB 992,000,000 in 2021[60] Cost Management - Sales and marketing expenses increased by approximately 14.2% from RMB 291.5 million in 2021 to RMB 332.9 million in 2022, primarily due to an increase in employee costs related to specialty pharmacy business[21] - Administrative expenses decreased by approximately 14.2% from RMB 670.0 million in 2021 to RMB 575.0 million in 2022, mainly due to a reduction in employee costs resulting from functional adjustments and improved administrative efficiency[22] - Research and development expenses increased by approximately 5.9% from RMB 59.2 million in 2021 to RMB 62.7 million in 2022, primarily due to an increase in employee costs[23] - The total cost of goods sold for 2022 was RMB 3,478,464,000, an increase from RMB 2,942,987,000 in 2021[61] - The company’s employee costs (excluding directors and highest paid executives) totaled RMB 599,295,000 in 2022, slightly up from RMB 581,953,000 in 2021[61] Strategic Initiatives - The company emphasizes organic growth strategies, maintaining service quality control across standardized professional services[9] - The business model has demonstrated resilience and adaptability in response to challenges posed by the COVID-19 pandemic[9] - The company aims to lead the digital transformation of the healthcare industry in China, establishing a comprehensive health management network[34] - The company is focused on enhancing its technology and digital infrastructure to support operations and improve data processing and analysis capabilities[11] - The planned use of the net proceeds includes 87% for business expansion, with specific allocations for expanding specialty pharmacy operations (35% or HKD 42,200,000), doctor research assistance (28% or HKD 33,700,000), and health insurance services (24% or HKD 28,900,000)[38] Corporate Governance - The company has adopted the Corporate Governance Code as per the Stock Exchange Listing Rules and has complied with all applicable provisions during the reporting period, except for specific deviations noted[81] - The company plans to hold at least four board meetings annually, approximately once per quarter, in accordance with the Corporate Governance Code[82] - The company has not conducted any board meetings from its listing date on December 23, 2022, to December 31, 2022, due to its recent public listing[82] - The company will issue a detailed corporate governance report in its 2022 annual report, explaining its governance structure and application of the Corporate Governance Code[82] - The audit committee, along with the board and external auditors, reviewed the accounting standards and practices adopted by the group for the year ending December 31, 2022[84]