China Medical & HealthCare Group Limited 中 國 醫 療 網 絡 有 限 公 司 * (於百慕達註冊成立之有限公司) (股份代號： 383) | --- | --- | |----------|--------------------| | | | | | | | 2020 | | | 中期報告 | | | | | | | * 中文名稱劇的服务 | 中國醫療網絡有限公司 本集團未經審核之業績 中國醫療網絡有限公司（「本公司」）之董事會（分別為「董事」及「董事會」）謹此宣 佈，本公司及其附屬公司（「本集團」）截至二零二零年六月三十日止六個月之未經審 核綜合業績連同截至二零一九年度同期之比較數字如下：－ 簡明綜合損益表 截至二零二零年六月三十日止六個月 | --- | --- | --- | --- | |--------------------------------|-------|------------------------------------|---------------------------------------------------------| ...

Financial Performance - For the eighteen months ending December 31, 2019, the group recorded a revenue decline of HKD 2,042,090,000, compared to HKD 2,318,159,000 in 2018, with a profit attributable to shareholders of HKD 2,176,000, recovering from a loss of HKD 137,110,000 in the previous fiscal year[8]. - The healthcare segment generated revenue of HKD 1,622,141,000, up from HKD 964,563,000 in 2018, with a profit of HKD 35,733,000 compared to HKD 5,226,000 in 2018[14]. - EBITDA for the healthcare segment was HKD 239,760,000, an increase from HKD 130,387,000 in 2018[14]. - The company did not recommend a final dividend for the eighteen months ending December 31, 2019, consistent with no dividend in 2018[10]. - The revenue from the elderly care business reached HKD 150,272,000, an increase from HKD 100,753,000 in the previous year, with a reduced loss of HKD 44,322,000 compared to HKD 58,154,000[19]. - The property development segment recorded a revenue decrease of HKD 7,326,000, with a loss of HKD 5,031,000 compared to a profit of HKD 917,000 in the previous year[23]. - Rental income from investment properties was HKD 9,266,000, an increase from HKD 7,358,000, while profit decreased to HKD 15,434,000 from HKD 23,621,000[24]. - The securities trading and investment segment saw a revenue drop to HKD 202,119,000 from HKD 1,224,445,000, but profit increased to HKD 14,474,000 from a loss of HKD 24,366,000[25]. - The company implemented cost reduction and restructuring measures to improve financial performance starting from the second half of 2018[19]. - The group recorded interest income from lending activities of HKD 50,966,000 in 2019, significantly up from HKD 2,308,000 in 2018, with a profit of HKD 46,669,000 compared to HKD 2,247,000 in the previous year[31]. Healthcare Services - The Nanjing Hospital, the flagship facility, currently operates 39 clinical departments and plans to increase its bed capacity to 1,200 following renovations[15]. - The Nanjing Hospital has established a stroke center and has been included in the second batch of municipal chest pain and trauma centers to enhance emergency services[15]. - Kunming Hospital currently operates 30 clinical medical technology departments and has recruited renowned experts from other top-tier hospitals[16]. - Nanjing Hospital recorded 1,236,573 outpatient visits, 43,384 inpatient admissions, and 75,869 health check-ups, while Kunming Hospital had 334,678 outpatient visits, 20,634 inpatient admissions, and 113,008 health check-ups[16]. - The group is focused on expanding its healthcare services and enhancing its operational efficiency through strategic investments and management improvements[12]. - Nanjing Hospital plans to enhance talent development and improve medical technology and service innovation capabilities in 2020[49]. - Kunming Hospital aims to maintain stable business growth and improve overall medical quality while developing a modern nuclear medicine center[51]. Financial Position and Assets - As of December 31, 2019, the group's total borrowings reached HKD 793,363,000, a decrease from HKD 825,503,000 in 2018[33]. - The group's non-current assets amounted to HKD 2,222,623,000 as of December 31, 2019, slightly down from HKD 2,285,771,000 in 2018[32]. - The debt ratio calculated based on net borrowings to total equity was 7.5% as of December 31, 2019, down from 13.8% in 2018[35]. - The group's investment portfolio performance is generally influenced by global and regional economic, political, and financial market conditions[30]. - The group's total assets included investment properties valued at HKD 772,520,000 as of December 31, 2019[32]. - The investment property portfolio's total book value was HKD 512,000,000, down from HKD 524,376,000 in the previous year[21]. Corporate Governance - The company has a strong board with members holding significant experience in finance and management across various sectors, enhancing its strategic decision-making capabilities[65][66]. - The board includes independent directors with extensive backgrounds in finance and engineering, ensuring diverse perspectives in governance[70][71]. - The company has implemented measures to maintain high standards of corporate governance, which is considered crucial for enhancing shareholder value[111]. - The board consists of 11 members, including 4 executive directors, 3 non-executive directors, and 4 independent non-executive directors[112]. - The company has established governance functions to assist the board in monitoring management's business activities[146]. - The company has adopted a board diversity policy to enhance sustainable and balanced development, considering factors such as gender, age, and professional experience[145]. - The company has arranged training for new directors to ensure they understand their roles and responsibilities under regulatory requirements[119]. - The company has established a comprehensive internal control system with a clear organizational structure and defined responsibilities to ensure effective checks and balances[172]. Environmental Management - The company is committed to reducing the adverse impact of its operations on the natural environment and adheres to relevant environmental laws and regulations[198]. - The company has not reported any serious violations of environmental laws and regulations during the reporting period[198]. - The medical wastewater generated by the group’s hospitals during the period was 339,470 cubic meters, an increase from 237,047 cubic meters in 2018[199]. - The group has implemented three key principles for wastewater treatment: on-site treatment, integrated compliance and risk management, and ecological safety[200]. - The hospitals are equipped with efficient wastewater treatment systems that comply with the national wastewater discharge standards (GB8978-1996) at the tertiary level[200]. - Additional biochemical treatment processes have been added to upgrade the system and enhance environmental standards for wastewater discharge[200]. - Real-time monitoring equipment has been installed in the wastewater treatment system to ensure operational effectiveness and compliance with regulatory requirements[200]. Future Outlook - The group anticipates a challenging operating environment due to the impact of COVID-19 but remains optimistic about the long-term prospects of the private healthcare and elderly care sectors in China[48]. - The company is in discussions with the borrower regarding the total debt repayment and is monitoring the repayment progress closely[56]. - The company will maintain a prudent approach in light of global economic uncertainties, including the impact of COVID-19 and geopolitical tensions, while seeking investment opportunities in China, Hong Kong, and the Asia-Pacific region[57]. - Future outlook includes a focus on sustainable growth and innovation to meet evolving market demands[69].

China Medical & HealthCare Group Limited 中 國 醫 療 網 絡 有 限 公 司 ˚ (於百ङ建註冊成立之有限公司) (股份代號： 383) 二零一九年 第二份中期報告 中文名詞庫的藏宗 中國醫療網絡有限公司 本集團未經審核之業績 中國醫療網絡有限公司（「本公司」）之董事會（分別為「董事」及「董事會」）謹此宣 佈，本公司及其附屬公司（「本集團」）截至二零一九年六月三十日止十二個月之未經 審核綜合業績連同截至二零一八年度同期之比較數字如下：－ 簡明綜合損益表 截至二零一九年六月三十日止十二個月 | --- | --- | --- | --- | |--------------------------------|-------|-----------------------------------------------------------------|--------------------------------| | | 附註 | 截至六月三十日止十二個月 \n二零一九年 千港元 \n（未經審核） | 二零一八年 千港元 \n（經審核） | | 收入 | 3 | ...

Financial Performance - Revenue for the six months ended December 31, 2018, was HKD 594,156,000, an increase of 6.9% compared to HKD 555,593,000 for the same period in 2017[2] - Gross profit for the same period was HKD 124,032,000, up from HKD 98,109,000, reflecting a significant improvement in profitability[4] - The company reported a profit of HKD 22,166,000 for the six months ended December 31, 2018, compared to a loss of HKD 69,122,000 in the prior year[6] - Basic and diluted earnings per share for the period were HKD 0.16, a recovery from a loss of HKD 0.43 per share in the previous year[4] - The company reported a loss before tax of HKD 30,250,000 for the period[93] - For the six months ended December 31, 2018, the company reported a profit of HKD 22,725,000, compared to a loss of HKD 62,544,000 for the same period in 2017[116] Assets and Liabilities - Total assets as of December 31, 2018, were HKD 2,215,139,000, a decrease from HKD 2,285,771,000 as of June 30, 2018[8] - Current liabilities decreased to HKD 1,030,297,000 from HKD 1,126,368,000, indicating improved liquidity management[10] - The company’s cash and cash equivalents stood at HKD 367,696,000, down from HKD 544,092,000, reflecting a tighter cash position[10] - Non-current assets totaled HKD 1,184,842,000, slightly down from HKD 1,207,359,000, indicating stability in long-term investments[8] - The total assets of the group amounted to HKD 3,356,480,000 as of December 31, 2018[106] - The group’s liabilities totaled HKD 1,552,271,000 at the end of the reporting period[106] - The company reported total borrowings of HKD 845,029,000 as of December 31, 2018, an increase from HKD 825,503,000 as of June 30, 2018[140] - The total borrowings of the group decreased to HKD 845,029,000 from HKD 1,510,774,000 in 2017, representing a reduction of approximately 44%[189] Cash Flow and Financing - For the six months ended December 31, 2018, the company reported a net cash outflow from operating activities of HKD 87,628,000, compared to a net inflow of HKD 180,536,000 in the same period of 2017[16] - The company incurred a cash outflow of HKD 69,067,000 from investing activities, a significant decrease from the inflow of HKD 122,371,000 in the previous year[18] - New borrowings amounted to HKD 236,843,000, while repayments totaled HKD 190,573,000, resulting in a net cash outflow from financing activities of HKD 14,353,000[18] - The company’s financing costs decreased significantly to HKD 25,717,000 from HKD 48,182,000, suggesting improved debt management[2] - The company’s total liabilities decreased significantly, reflecting improved financial health and management of debts[6] Revenue Recognition and Accounting Standards - The company has adopted new and revised Hong Kong Financial Reporting Standards, which may impact the presentation of financial results going forward[21] - The company has adopted Hong Kong Financial Reporting Standard 15, which has led to significant changes in accounting policies regarding revenue recognition[28] - Revenue from medical and elderly care services is recognized over time as the services are provided, reflecting the control transfer to customers[35] - Revenue from pharmaceutical sales is recognized at the point when control of the goods is transferred to the customer[36] - The revenue recognition process involves identifying contracts with customers and determining performance obligations[28] - The company has chosen to apply HKFRS 15 retrospectively only to contracts that were not completed as of July 1, 2018[28] Segment Performance - The healthcare segment generated a profit of HKD 8,748,000, while the elderly care segment reported a loss of HKD 10,786,000[93] - The company’s property development segment recorded revenue of HKD 1,287,000[84] - The group’s financial services segment generated revenue of HKD 12,304,000[93] - The elderly care segment reported revenue of HKD 62,602,000, up from HKD 53,896,000 in 2017, but incurred a loss of HKD 10,786,000 compared to a loss of HKD 18,122,000 in the previous year[173] - The company implemented restructuring measures in the healthcare segment to reduce operating expenses and streamline management[170] Future Outlook and Strategic Plans - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[6] - The company is focused on expanding its operations in mainland China, particularly in healthcare and elderly care sectors[25] - The group believes the outlook for China's private healthcare and elderly care industry is optimistic due to favorable demographic and macroeconomic factors, along with government support policies[200] Employee and Operational Metrics - The group employed 2,321 employees as of December 31, 2018, an increase from 2,212 employees in 2017, reflecting a growth in workforce[199] - The number of outpatient visits at Nanjing Hospital increased to 390,187 from 385,543 in 2017, while inpatient admissions rose to 13,746 from 13,264[171] - The company plans to increase inpatient capacity at Nanjing Hospital by 400 beds following the operation of a new building at the end of 2018[171] Investment and Capital Expenditures - The company made capital expenditures of HKD 42,089,000 for the purchase of property, plant, and equipment, up from HKD 31,071,000 in the prior year[18] - The company has capital commitments of HKD 208,261,000 as of December 31, 2018, compared to HKD 215,191,000 on June 30, 2018[154] - Approximately HKD 600,000,000 from the share subscription proceeds is expected to be used for working capital and expanding the group's hospital and healthcare business[192]