Financial Performance - In 2024, the Group achieved operating revenue of RMB 9.855 billion, representing a year-on-year decrease of 2.5%[20] - The net profit attributable to the parent amounted to RMB 566 million, reflecting a year-on-year increase of 119.6%[20] - In 2024, the consolidated revenue of China Resources Medical amounted to RMB 9.855 billion, a decrease from RMB 10.108 billion in FY2023, while the consolidated net profit increased to RMB 672 million from RMB 328 million in FY2023[37] - The Group's net profit for the reporting period was RMB 672 million, representing a year-on-year increase of 104.9%[72] - The revenue from the hospital business segment for 2024 was RMB 9,185 million, representing a year-on-year decrease of 2.4%[55] - Revenue from other business was RMB 670 million, a year-on-year decrease of 4.5%, mainly due to restructuring of supply chain services[57] - The profit of the hospital business segment recorded RMB 766 million, representing a year-on-year increase of 20.1%[56] Operational Metrics - The number of conventional out-patient visits increased to 10.32 million, a year-on-year growth of 1.9%[20] - The number of in-patient visits rose to 0.56 million, representing a year-on-year increase of 1.0%[20] - The number of outpatient visits and inpatient visits for the Group's self-owned hospitals increased by 1.3% and 1.0% year-on-year, respectively, with approximately 10.32 million outpatient visits and 560,000 inpatient visits recorded[36][38] - Out-patient visits increased by 1.3% to 10,325,639, while in-patient visits increased by 1.0% to 560,149[55] Dividends and Shareholder Returns - The Group proposed a dividend of RMB 0.132 per share for 2024, with an interim dividend of RMB 0.05 already distributed and a final dividend of RMB 0.082 proposed[20] - The proposed final dividend for FY2024 is RMB8.2 cents per share, an increase from RMB6 cents per share in FY2023[142] - The total amount of dividend for FY2024 is approximately RMB171 million, with RMB65 million paid as interim dividend and RMB106 million proposed as final dividend[142] - The Group's ability to pay dividends depends on its financial condition, current and future operations, liquidity position, and capital requirements[147] Strategic Focus and Future Plans - The Group aims to deepen structural reforms and improve quality and efficiency in 2025, focusing on core competencies such as discipline construction and digital intelligence[26][30] - The Group aims to strengthen its core competencies in 2025, focusing on discipline construction, patient services, and digital intelligence[105] - The year 2025 marks the conclusion of the "14th Five-Year Plan" and the planning phase for the "15th Five-Year Plan," with a focus on improving quality and efficiency[106] - The Group plans to leverage its state-owned enterprise status to achieve high-quality development and fulfill social responsibilities while enhancing market value management[29][30] Employee and Operational Management - As of December 31, 2024, the Group had a total of 19,953 full-time employees, a decrease from 20,172 employees as of December 31, 2023[95] - For FY2024, the staff cost was approximately RMB 3,470 million, compared to RMB 3,406 million in FY2023, reflecting an increase of about 1.9%[95] - The Group emphasizes the importance of employee safety and development, implementing high standards of health and safety measures[139] Compliance and Governance - The Group has complied with all relevant PRC laws and regulations regarding environmental protection during the year ended December 31, 2024[123] - The Group has established a Supplier Code of Conduct to ensure compliance with local regulations governing labor, health, safety, and the environment[138] - All independent non-executive Directors confirmed their independence and compliance with the Listing Rules during the reporting period[190][193] Investments and Acquisitions - The Group did not have any significant acquisitions or disposals during the reporting period, except for investments in associates[58] - As of December 31, 2024, the Group's investment in JR Holdings and JR Renkang amounted to RMB 874 million and RMB 2.45 million, respectively[63] - JR Holdings and JR Renkang achieved a combined revenue of RMB 373 million, resulting in a net profit of RMB 200 million during the reporting period[64] Customer and Supplier Relations - The Group's five largest customers accounted for approximately 5.1% of total sales in 2024, down from 6.5% in 2023, with the largest customer contributing about 1.5% of total sales, down from 3.0%[168][173] - Purchases from the Group's five largest suppliers represented approximately 12.1% of total purchases in 2024, a decrease from 15.7% in 2023, with the largest supplier accounting for about 2.8% of total purchases, down from 4.6%[169][173]

智通财经APP获悉，中金发布研报称，考虑华润医疗(01515)住院和门诊次均收入下降，下调2025年净利 润20.8%至5.66亿元，同比持平，引入2026年净利润5.92亿元，同比增加4.5%。基于对公司通过加强学 科建设提升区域影响力的看好，维持跑赢行业评级和目标价5.0港元，对应2025/2026年10.8/10.2倍市盈 率，对应23.2%上行空间。 截至2024年底，公司在中国10个省、市共管理运营105家医疗机构(三级医院13个，二级医院22个，一级 医院及社区中心41个，诊所及其他医疗机构29个)，公司自有医院运营床位数合计18,567张，床位使用 率为82.9%。2024年，公司自有医院常规门诊量和住院量分别为1032.56万人次和56.01万人次。 医院业务方面，2024年门诊和住院人次同比保持增长 2024年，公司医院业务收入人民币91.85亿元，同比下滑2.4%;其中，门诊人次增加1.3%，住院人次增加 1.0%;门诊服务收入人民币36.65亿元，同比下滑1.0%，住院服务收入人民币52.94亿元，同比下滑 3.3%，主要受医保控费影响门诊和住院次均收入同比略下滑。2024年，医院毛利为 ...

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 9,854,790 thousand, a decrease of 2.5% from RMB 10,107,500 thousand in 2023[2]. - Net profit attributable to equity holders of the parent company increased significantly to RMB 565,875 thousand, up 120% from RMB 257,680 thousand in the previous year[3]. - Basic and diluted earnings per share rose to RMB 0.45, compared to RMB 0.20 in 2023, reflecting a 125% increase[3]. - Gross profit for the year was RMB 1,809,826 thousand, down from RMB 1,905,837 thousand in 2023, indicating a decline in gross margin[3]. - Operating expenses, including selling and administrative expenses, totaled RMB 1,048,592 thousand, an increase from RMB 970,769 thousand in the previous year[3]. - Profit before tax increased to RMB 838,670 thousand, compared to RMB 492,921 thousand in 2023, showing a growth of 70%[3]. - The company reported a total comprehensive income of RMB 639,267 thousand for the year, up from RMB 313,584 thousand in 2023[5]. - Non-controlling interests in profit amounted to RMB 105,872 thousand, compared to RMB 70,210 thousand in the previous year[3]. Dividends - The company proposed a mid-term dividend of RMB 0.05 per share and a final dividend of RMB 0.082 per share, compared to RMB 0.06 in 2023[2]. - The proposed final dividend for the fiscal year 2024 is RMB 0.082 per share, an increase from RMB 0.06 per share in the fiscal year 2023[70]. - The total expected dividend for the fiscal year 2024 is approximately RMB 171 million, including an interim dividend of RMB 65 million and a proposed final dividend of RMB 106 million[70]. - The final dividend is subject to approval at the annual general meeting scheduled for June 5, 2025[70]. - The company's ability to pay dividends is contingent upon its financial condition, operational performance, and capital requirements[72]. - The dividend policy is subject to review and does not guarantee any specific amount will be paid in any designated period[72]. Assets and Liabilities - Total non-current assets decreased to CNY 10,079,012 thousand in 2024 from CNY 10,225,113 thousand in 2023, a decline of approximately 1.43%[6]. - Current assets totaled CNY 3,239,138 thousand in 2024, down from CNY 3,429,079 thousand in 2023, representing a decrease of about 5.55%[6]. - Total current liabilities decreased to CNY 4,499,386 thousand in 2024 from CNY 5,207,373 thousand in 2023, a reduction of approximately 13.56%[7]. - The net current liabilities improved to CNY (1,260,248) thousand in 2024 compared to CNY (1,778,294) thousand in 2023, indicating a positive change[7]. - Total assets minus current liabilities increased to CNY 8,818,764 thousand in 2024 from CNY 8,446,819 thousand in 2023, an increase of about 4.41%[7]. - Total equity remained stable at CNY 7,498,068 thousand in 2024, compared to CNY 7,013,066 thousand in 2023, reflecting a growth of approximately 6.92%[7]. - The company’s total liabilities decreased to CNY 5,820,000 thousand in 2024 from CNY 6,658,000 thousand in 2023, a decrease of approximately 12.63%[7]. Revenue Segments - The company’s revenue from hospital management services and medical supplies is expected to grow in the upcoming fiscal year, driven by market expansion strategies[8]. - Total revenue for the year ending December 31, 2024, is projected to be CNY 9,854,790, with a significant contribution from the hospital business segment at CNY 9,184,960[20]. - The hospital business segment reported revenue of RMB 9.185 billion for 2024, a decrease of 2.4% year-on-year[47]. - Inpatient services generated revenue of RMB 5,293,544 in 2024, down from RMB 5,473,459 in 2023, reflecting a decline of 3.3%[24]. - Outpatient services revenue for 2024 is RMB 3,891,416, slightly decreased from RMB 3,932,694 in 2023, a decline of 1.1%[24]. Operational Efficiency - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[3]. - The company aims to enhance its market expansion strategies, focusing on the hospital business segment, which has shown consistent revenue growth[20]. - The company is investing in new product development and technology to improve operational efficiency and service delivery in the healthcare sector[20]. - The group aims to enhance its competitive edge in the region by improving medical service capabilities amidst increasing regional competition and healthcare payment reforms[39]. - The group faced talent shortages and has implemented measures to attract and retain qualified medical personnel[56]. Compliance and Governance - The company adheres to the applicable rules and regulations regarding dividend distribution and corporate governance[71]. - The company has adhered to the corporate governance code as of December 31, 2024, enhancing accountability and transparency for shareholders[78]. - The audit committee, consisting of three independent non-executive directors, has reviewed the financial reporting and internal controls for the fiscal year ending December 31, 2024[80]. - The company’s auditor, PwC, confirmed that the preliminary financial results align with the audited financial statements for the fiscal year 2024[81]. Future Outlook - The overall financial outlook remains positive, with a focus on maintaining profitability and exploring potential mergers and acquisitions to strengthen market position[20]. - In 2025, the group plans to focus on core capabilities such as discipline construction, patient services, and digitalization to enhance sustainable development[65]. - The group aims to deepen structural reforms and improve quality and efficiency in its annual management theme for 2025[66]. - There are currently no substantial plans for major investments or capital asset acquisitions outside of routine business operations[64].

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company's overall performance in H1 2024 met expectations, with improved profitability [1] - Despite a slight decline in revenue, the company's profit optimization is promising [1] - The company is expected to see continuous growth in business scale and profitability due to asset integration and refined management [3] Financial Performance - H1 2024 revenue was RMB 49.76 billion, a decrease of 2.7% YoY, while net profit increased by 9.0% to RMB 4.34 billion [4] - Hospital business revenue in H1 2024 was RMB 46.00 billion, a slight decrease of 3.0% YoY, with outpatient revenue increasing by 1.7% and inpatient revenue decreasing by 6.1% [4] - Other business revenue increased by 1.8% to RMB 3.76 billion [4] Operational Highlights - The company managed 127 medical institutions across 10 provinces in China, including 13 tertiary hospitals and 23 secondary hospitals [4] - In H1 2024, outpatient visits and inpatient admissions at self-owned hospitals increased by 3.5% and 3.0% YoY, reaching 5.05 million and 280,000 respectively [1] - Average revenue per outpatient visit and inpatient admission decreased by 2.0% and 8.8% respectively, influenced by a two-year gap in medical insurance settlements [1] Profitability and Cost Efficiency - The gross profit margin for the hospital business in H1 2024 was 20.1%, with a gross profit of RMB 9.23 billion [2] - Financial expenses decreased by 34.8% to RMB 39.84 million due to the replacement of foreign loans with RMB loans, resulting in lower interest rates [2] - Income tax decreased by 16.3% to RMB 116 million, primarily due to a reduction in taxable income within China [2] Future Projections - The company's revenue for 2024-2026 is projected to be RMB 105.20 billion, RMB 110.84 billion, and RMB 117.46 billion, with YoY growth rates of 4.08%, 5.37%, and 5.97% respectively [3] - Net profit attributable to shareholders is expected to be RMB 7.44 billion, RMB 7.82 billion, and RMB 8.17 billion for 2024-2026, with YoY growth rates of 188.90%, 5.02%, and 4.50% respectively [3] Market Position - The company is a leading comprehensive medical group under the central state-owned enterprise, with significant growth potential in the healthcare sector [3]

Investment Rating - The investment rating for the company is "Buy" with a target price of 5.98 HKD per share, compared to the current price of 3.52 HKD [2][12]. Core Insights - The company reported a slight decline in revenue for the first half of 2024, with a year-on-year decrease of 2.7% to 4.98 billion RMB, primarily due to the impact of two years of medical insurance settlement differences and a high base from the first half of 2023. However, net profit attributable to shareholders increased by 9.1% to 434 million RMB [6][12]. - The hospital business revenue also saw a slight decline, with outpatient and inpatient visits increasing, but average revenue per visit decreased. The medical business revenue for the hospitals was 4.60 billion RMB, down 3.0% year-on-year. Excluding the impact of medical insurance settlement differences and the closure of Huaiyin Hospital, revenue remained stable [6][12]. - The company is expected to continue its cost reduction and efficiency improvement strategies, which are anticipated to mitigate the impact of medical insurance settlement differences. For 2024, the company forecasts a stable growth in internal performance, with net profit expected to increase by 8.6% compared to the adjusted figure from 2023 [6][12]. Summary by Sections Financial Performance - For the first half of 2024, the company achieved an EBITDA of 970 million RMB, remaining stable year-on-year. The proportion of drug and consumable costs in revenue decreased by 0.6 percentage points, helping to offset the impact of medical insurance settlement differences [6][12]. - The forecast for 2024 indicates a slight decline in hospital business revenue, with expectations of a 4-5% growth in 2025-2026 as the impact of medical insurance settlement differences diminishes [12][13]. Hospital Operations - The company operates a total of 127 medical institutions, including 13 tertiary hospitals and 23 secondary hospitals, with a total of 20,845 operational beds as of June 30, 2024. The company is focusing on enhancing the quality and efficiency of its operations through centralized procurement and digitalization [6][12]. - The outpatient revenue was 1.81 billion RMB, up 1.4% year-on-year, while inpatient revenue was 2.70 billion RMB, down 6.1%. The average revenue per outpatient visit decreased by 2.0%, and for inpatient visits, it decreased by 8.8% [6][12]. Profitability and Valuation - The company is expected to maintain a profit margin improvement trend, with net profit projected to grow by approximately 7% in 2025-2026. The reference valuation based on comparable companies suggests a PE ratio of 10 times for 2024, leading to a reasonable value of 5.98 HKD per share [12][13].

Financial Performance - The Group achieved total revenue of RMB4,976 million, a decrease of 2.7% compared to RMB5,114 million in the corresponding period[16]. - Net profit attributable to shareholders increased to RMB434 million, up 9.0% from RMB398 million in the corresponding period[16]. - Earnings per share rose to RMB0.34, compared to RMB0.31 in the corresponding period, reflecting a growth of 9.7%[16]. - The gross profit of the hospital business segment was RMB 923 million, with a gross profit margin of 20.1%, and segment profit decreased by 11.6% to RMB 521 million[33]. - Revenue from outpatient visits was RMB 1.895 billion, reflecting a 1.7% increase, while revenue from inpatient visits was RMB 2.705 billion, down 6.1%[30]. - The hospital business segment recorded revenue of RMB 4.6 billion, a slight decrease of 3.0% year-over-year, with outpatient visits increasing by 3.5% and inpatient visits by 3.0%[36]. - The Group's net profit for the reporting period was RMB 512 million, representing a year-over-year increase of 5.1%[49]. - The Group's finance costs decreased to approximately RMB 39.84 million from RMB 61.15 million in the corresponding period, attributed to the replacement of foreign currency borrowings with RMB borrowings[45]. - The effective income tax rate for the Group's recurring business decreased to 18.4% from 22.1% in the corresponding period, with income tax amounting to approximately RMB 116 million, down 16.3% year-over-year[46]. - The Group's leverage ratio, calculated as interest-bearing debt to total assets, was 14.7% as of June 30, 2024, down from 15.8% on December 31, 2023[55]. Operational Highlights - Out-patient visits increased by 3.5% and in-patient visits grew by 3.0%, indicating a solid business foundation for self-owned hospitals[16]. - The utilization rate of beds in self-owned hospitals was 79.93% with 18,646 beds in operation[22]. - The Group managed a total of 127 medical institutions across 10 provinces and cities in China as of June 30, 2024[19]. - The revenue per outpatient visit and inpatient visit decreased by 2.0% and 8.8%, respectively, due to differences in medical insurance settlements[33]. Strategic Decisions - Huaiyin Hospital ceased operations on May 13, 2024, due to continuous operational losses and lack of business development opportunities[17]. - The decision to close Huaiyin Hospital is expected to minimize losses and control project risks for the Group in the long term[17]. - The impact of Huaiyin Hospital's closure on the Group's overall business development is considered relatively small[17]. - The Group plans to cease operations at Huaiyin Hospital effective May 13, 2024, due to ongoing losses and lack of business development opportunities[18]. Shareholder Information - An interim dividend of RMB 0.05 per share has been declared for the six months ended June 30, 2024, compared to no dividend in the corresponding period[65]. - The register of members will be closed from September 11 to September 12, 2024, for determining entitlement to the 2024 Interim Dividend[69]. - The 2024 Interim Dividend will be paid in HK$ on October 25, 2024, unless a currency election is made by shareholders[68]. Risk Management and Compliance - The Group's risk management and internal control systems are designed to protect assets and ensure compliance with laws and regulations[125]. - The Board has overall responsibility for maintaining effective risk management and internal control systems to ensure compliance with accounting standards and relevant laws[126]. - During the reporting period, the Board reviewed the efficiency of the Group's risk management and internal control systems across financial, operational, compliance, and risk management aspects[127]. - The Board will continue to optimize risk management and internal control systems in line with the Group's business development[127]. Connected Transactions - The Company entered into a strategic cooperation agreement with CR Bank and CR Trust for a term from January 1, 2023, to December 31, 2025, with annual caps renewed[85][86]. - The agreements and transactions constitute continuing connected transactions under Chapter 14A of the Listing Rules[91][93]. - The Company aims to improve efficiency and reduce costs in supply management of medical supplies through the established agreements[96][97]. - The Company signed a Supply Chain Management Services Framework Agreement with CR Health on February 8, 2024, with annual caps of RMB65 million for 2024 and RMB100 million for 2025[98]. Employee Information - The total staff costs for the reporting period were approximately RMB 1.704 billion, compared to RMB 1.667 billion in the corresponding period[60]. - The Group had a total of 19,640 full-time employees as of June 30, 2024, a decrease from 20,172 employees on December 31, 2023[60]. Legal Matters - The Beijing High People's Court ruled that Yan Hua Phoenix must pay damages of RMB 14,400,000 for breaching the Yan Hua IOT Agreement[135]. - The Company received the liquidated damages of RMB 14,400,000 through court enforcement procedures in April 2022[135]. - The Company is currently pursuing a separate lawsuit against the Yanhua Parties for additional compensation due to their breach of the Yan Hua IOT Agreement[135].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不對因本公告全部或任何部 分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 1 China Resources Medical Holdings Company Limited 華潤醫療控股有限公司 （於開曼群島註冊成立的有限責任公司） （股份代號：1515） 截至2024年6月30日止六個月之中期業績公告 華潤醫療控股有限公司（「本公司」）董事會（「董事會」）欣然宣佈，本公司及其附屬公 司（「本集團」）截至2024年6月30日止六個月（「報告期」）之未經審核綜合業績，如下： 中期簡明綜合損益及其他全面收益報表 截至2024年6月30日止六個月－未經審核 | --- | --- | --- | --- | |----------------------|-------|-------------------------|-----------------------| | | | 截至 6 月 30 \n2024 年 | 日止六個月 \n2023 年 | | | 附註 | 人民幣 ...

Leadership Appointments - Mr. YU Hai was appointed as an executive Director and the chief executive officer of the Company effective from February 27, 2023[4] - Ms. YANG Min was appointed as an executive Director and the Chief Financial Officer effective from June 13, 2023[5] - Mr. ZHOU Peng was appointed as an independent non-executive Director and a member of the Audit Committee effective from September 14, 2023[5] Company Locations - The Company's headquarters and principal place of business in Chinese Mainland is located at 14/F, Kunlun Center Office Building, No. 9, Fuyi Street, Fengtai District, Beijing[6] - The Company's principal place of business in Hong Kong is located at Room 2603, 26/F, China Resources Building, 26 Harbour Road, Wanchai, HKSAR[7] - The Company's registered office is located at Harneys Fiduciary (Cayman) Limited, 4th Floor, Harbour Place, 103 South Church Street, P.O. Box 10240, Grand Cayman, KY1-1002, Cayman Islands[7] Financial and Legal Advisors - The Company's Hong Kong branch share registrar is Computershare Hong Kong Investor Services Limited, Shops 1712–1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, HKSAR[7] - The Company's auditors are KPMG, Certified Public Accountants, Public Interest Entity Auditor registered in accordance with the Accounting and Financial Reporting Council Ordinance, located at 8th Floor, Prince's Building, 10 Chater Road, Central, Hong Kong SAR[7] - The Company's legal adviser for Hong Kong law is Jingtian & Gongcheng LLP, located at Suites 3203–3207, 32/F, Edinburgh Tower, The Landmark, 15 Queen's Road Central, Central, HKSAR[8] - The Company's principal bankers include China Merchants Bank, located at 2nd Floor, Tower A, 156 Fuxingmennei Street, Xicheng District, Beijing, and Industrial and Commercial Bank of China, located at Room 102, Block 16, Court 2, East Baizhifang Street, Xicheng District, Beijing[9] Business Performance and Acquisitions - The Group completed the acquisitions of Liaojian and Jiangneng subsidiaries, significantly improving operational quality and performance, securing a favorable position in regional competition[12][13] - The Group's medical business recorded an increase in conventional outpatient visits exceeding 10 million, a year-on-year growth of 97%, and achieved operating revenue of RMB10.11 billion, a year-on-year increase of 79.8%[14] - The Group added 9 provincial key specialties, 31 municipal key specialties, and 67 new specialty clinics for specific diseases during the Reporting Period[14] - The Group initiated 37 national-level centralized projects and implemented 323 new technology projects[14] - The Group conducted 43 new drug clinical trial projects with Good-Clinical Practice (GCP) and obtained 14 patent authorizations[14] - The Group's R&D investment in 2023 grew by 206% year-on-year[14] - The Group's member hospitals achieved significant improvements in patient satisfaction through enhanced patient service management mechanisms[14] - The Group continues to focus on state-owned hospital reforms, aiming to improve medical technology levels and healthcare service efficiency through comprehensive innovation[14] - The Group's acquisitions of LH Subjects and JE Subject by the end of June 2023 further expanded its hospital network, laying a solid foundation for future high-quality development[17] - Consolidated revenue for the Reporting Period amounted to RMB10.108 billion, compared to RMB7.901 billion in FY2022 (restated)[21] - Consolidated net profit for the Reporting Period was RMB328 million, consistent with FY2022 (restated)[21] - LH Member Institutions and JE Member Medical Institutions contributed RMB4.096 billion in consolidated revenue and RMB383 million in consolidated net profit[21] - The Group operates a total of 134 medical institutions, including 13 Grade III hospitals, 25 Grade II hospitals, 43 Grade I hospitals and community centers, and 53 clinics and other medical institutions[23] - Self-owned hospitals recorded a year-on-year improvement in business volume, revenue, and operating profit during the Reporting Period[21] - The utilization rate of beds in self-owned hospitals increased to 83.7% in 2023 from 76.3% in 2022[24][25] - Revenue from medical business in self-owned hospitals reached RMB9.406 billion in 2023, up from RMB8.675 billion in 2022[24][25] - The Group completed the acquisition of LH Subjects and JE Subject in June 2023, expanding its hospital network[18] - The Group's financial results for the Reporting Period included the financial results of LH Subjects and JE Subject starting from January 1, 2023[20] - The Group's financial statements for FY2022 were restated to include the financial results of LH Subjects and JE Subject from June 2, 2022[19] - Hospital business revenue increased by 33.4% year-on-year to RMB 9,406.153 million, with outpatient revenue up 32.5% to RMB 3,932.694 million and inpatient revenue up 34.0% to RMB 5,473.459 million[28][30] - Hospital business segment profit rose 37.2% year-on-year to RMB 638 million, with LH and JE subjects contributing RMB 479 million and stock hospitals contributing RMB 159 million[33] - Excluding one-time impairment, stock hospitals' profit increased 47.4% year-on-year to RMB 484 million, driven by improved operational efficiency[33] - Other business revenue decreased 17.3% year-on-year to RMB 701 million, with segment profit down 6.8% to RMB 236 million[34] - Total revenue increased 27.9% year-on-year to RMB 10,107.5 million, with segment gross profit up 45.9% to RMB 1,905.837 million[28] - JR Holdings and JR Renkang achieved combined revenue of RMB 223 million and net profit of RMB 185 million, with the company's share of net profit at RMB 90.78 million[41] - The company received RMB 88.88 million in FY2022 dividends from JR Holdings and JR Renkang[41] - The company's investment in JR Holdings and JR Renkang totaled RMB 918 million and RMB 59.15 million, respectively, representing 7.2% of total assets[40] - The fair value of the company's investment in UMP Healthcare Holdings was approximately RMB 49.08 million as of December 31, 2023[44] - No concrete plans for material investment or capital asset acquisitions beyond ordinary business operations as of the report date[45] - The company's investment in United Medical Group has a fair value of approximately RMB 49.08 million as of December 31, 2023[46] - The Group achieved revenue of RMB 10.108 billion during the reporting period, a 27.9% year-on-year increase, with LH Subjects and JE Subject contributing RMB 4.096 billion[52] - Hospital business revenue reached RMB 9.406 billion, a 33.4% year-on-year increase, driven by increased patient visits and improved bed utilization[53] - Other business revenue decreased by 17.3% year-on-year to RMB 701 million[53] - Gross profit increased by 45.9% year-on-year to RMB 1.906 billion, with a gross profit margin of 18.9%[53] - Administrative expenses totaled RMB 971 million, a 20.0% year-on-year increase, with existing business administrative expenses growing at a lower rate of 3.3% due to effective cost control measures[54] - Impairment losses on goodwill, property, plant and equipment, and right-of-use assets amounted to RMB 141 million, RMB 209 million, and RMB 2 million, respectively, primarily due to the underperformance of Huaiyin Hospital[55] - The company plans to continue building leading hospitals, accelerate the construction of provincial and municipal key specialties, and expand the GCP program to enhance medical education and research[49] - The company aims to deepen regional integrated management and regional medical consortium construction to achieve comprehensive management of leading hospitals over regional medical institutions[50] - The company will strengthen the brain specialty, promote the construction of brain hospitals in Guangxi, and further expand the discipline's capacity in South China[50] - Huaiyin Hospital's revenue decreased by over 60% year-on-year, with an operating loss exceeding RMB 30 million in 2023[56] - The carrying amount of government service fee receivable for Huaiyin Hospital was RMB 73 million, and the loan receivable was RMB 41 million as of December 31, 2022[58] - The Group recorded impairment losses of RMB 114 million related to Huaiyin Hospital, reducing pre-tax profit by RMB 466 million and net profit by RMB 447 million[58] - The Group's income tax expense increased by 74.3% year-on-year to RMB 165 million, primarily due to increased profit[58] - The Group's net profit was RMB 328 million, representing a year-on-year decrease of 0.1%, with Huaiyin Hospital's impairment reducing net profit by RMB 447 million[58] - The Group's consolidated bank balances and cash, certificate of deposit, and bank financial products amounted to approximately RMB 1.28 billion as of December 31, 2023[59] - The Group obtained an offshore revolving term loan facility of HK$3.7 billion and mainland facilities of RMB 5.27 billion, with bank borrowings of RMB 2.16 billion as of December 31, 2023[60] - The Group's gearing ratio was 15.8% as of December 31, 2023, based on interest-bearing liabilities divided by total assets[62] - The Group is exposed to foreign currency risk, primarily related to fluctuations in the Hong Kong dollar and U.S. dollar against RMB, and has not used derivative contracts to hedge against this risk[63] - The Group had a total of 20,172 full-time employees as of December 31, 2023, a decrease from 20,622 employees in 2022[69] - Staff costs for FY2023 were approximately RMB3,406 million, up from RMB2,635 million in FY2022[69] - The Group operates a defined contribution Mandatory Provident Fund (MPF) Scheme in Hong Kong, with contributions based on a percentage of employees' basic salaries[70] - Subsidiaries in Mainland China participate in a central pension scheme, contributing a certain percentage of payroll costs[73] - The Group did not have any contingent liabilities or material pledges of assets as of December 31, 2023[66][67] - No significant subsequent events occurred after December 31, 2023, that would materially impact the Group's performance or value[68] - The Group faces foreign exchange risk due to currency fluctuations, primarily involving HKD and USD against RMB, but does not use derivative contracts to hedge this risk[65] - The Group is actively addressing talent shortages by attracting, training, and retaining qualified medical and management personnel to mitigate potential impacts on hospital operations[64][65] - The Group has implemented the "Hazardous Substances Safety Management Plan" and "Medical Waste Management System" to manage hazardous chemicals and medical waste, including storage, labeling, and disposal[85] - The Group formulated the "Energy Conservation, Emission Reduction and Environmental Protection Management System" to guide hospitals in energy conservation and eco-environmental protection, promoting green and high-quality development[85] - The Group monitors the implementation of environmental policies quarterly to ensure effective execution[85] - The Group has established the "Radiation Safety Management Plan" and "Radiation Emergency Plan" to manage radiation safety, with annual monitoring of radiation levels in hospitals[87] - The Group conducts regular drills and evaluations to assess responsiveness to radiation-related emergencies[87] - The Group maintains a high standard of health and safety measures in all company activities, with a focus on workplace safety[92] - The Group offers training and leadership development programs for employees with different academic backgrounds to support talent acquisition and continuous development[92] - The Group uses new media platforms to collect patient feedback and identify areas for service improvement[93] - The Group conducts annual supplier performance reviews and communicates with underperforming suppliers for rectification or improvements[94] - The Group's financial results for the year ended December 31, 2023, are detailed in the consolidated statement of profit or loss and comprehensive income[96] - The company proposes a final dividend of RMB6 cents per share for FY2023, totaling approximately RMB77.80 million, compared to RMB3.3 cents per share in FY2022[97][98] - The company's share premium as of December 31, 2023, amounted to RMB5,572,218,000, available for distribution subject to a solvency test[106] - Sales to the company's five largest customers accounted for approximately 6.5% of total sales in FY2023, with the largest customer contributing 3.0%[114] - Purchases from the company's five largest suppliers accounted for approximately 15.7% of total purchases in FY2023, with the largest supplier contributing 4.6%[114] - The company's dividend policy allows for profit sharing with shareholders in the form of annual dividends, provided it does not affect normal operations[100][104] - Sales to the top five customers accounted for approximately 6.5% of total sales for the year ended December 31, 2023, compared to 2.9% in 2022 (restated)[117] - Sales to the largest customer accounted for approximately 3.0% of total sales for the year ended December 31, 2023, compared to 1.2% in 2022 (restated)[117] - Purchases from the top five suppliers accounted for approximately 15.7% of total purchases for the year ended December 31, 2023, compared to 17.4% in 2022 (restated)[117] - Purchases from the largest supplier accounted for approximately 4.6% of total purchases for the year ended December 31, 2023, compared to 5.4% in 2022 (restated)[117] - The company maintains a directors' liability insurance policy to cover potential legal liabilities and related expenses for directors[116][118] - Independent non-executive directors receive an annual fee of HK$300,000 each[125] - The company has received annual independence confirmation from all independent non-executive directors, confirming their independence under Rule 3.13 of the Listing Rules[128][131] - None of the directors or their close associates had engaged in or had any interest in any business competing with the company as of December 31, 2023[130][132] - Song Qing, the Chairman, holds a long position of 400,000 ordinary shares, representing approximately 0.03% of the total shareholding[134] - Ge Lu, a non-executive director, holds a long position of 66,000 ordinary shares, representing approximately 0.01% of the total shareholding[135] - The maximum number of shares that can be issued under the Share Option Scheme is 83,376,300, representing 10% of the company's issued share capital as of the listing date[146] - The Share Option Scheme expired on September 29, 2023, and no further options can be granted or shares issued under the scheme thereafter[146] - The total number of shares issued or to be issued upon exercise of options granted to any grantee in any 12-month period shall not exceed 1% of the total number of shares in issue[147] - The Share Option Scheme was valid for 10 years from September 30, 2013, and no further options will be granted after its expiration, but previously granted options remain valid and exercisable[145] - The offer period for granting options is 14 days from the date of offer, and the option is deemed granted upon receipt of the signed offer document and a remittance of HK$1.00[151] - There is no minimum holding period required before an option can be exercised, and the exercise period is determined by the Board, not exceeding 10 years from the vesting period start date[152] - No share options were granted, exercised, expired, cancelled, or lapsed during the year ended December 31, 2023, and the Share Option Scheme expired on September 29, 2023[157] - The Share Award Scheme allows the Board to grant up to 5% of the total issued shares (64,833,825 shares) as Award Shares, representing approximately 5.00% of the issued share capital as of the annual report date[161] - The maximum number of Award Shares that can be granted to each Selected Participant is 1% of the total issued shares (12,966,765 shares)[161] - Since the adoption of the Share Award Scheme, a total of 32,212,216 Award Shares have been granted, subject to vesting criteria and conditions, with no shares granted in FY2023[164] - The Board has the discretion to determine the Grant Price for Award Shares, considering factors such as the participant's position, experience, years of service, performance, and contribution[160] - The Share Award Scheme is valid for 10 years from July 7, 2014, and is administered by the Board and the scheme's trustee[158] - 50% of the Relevant Award Shares were acquired by the Selected Participants at HK$5.27 per Share, and the remaining 50% were granted by the Company at zero consideration[166] - The Relevant Award Shares were vested during the period from FY2020 to FY2022, with the first batch vested on the date of the 2019 annual assessment, the second batch on the 2020 assessment, and the third batch on the 2021 assessment[166] - As of December 31, 2023, China Resources Company Limited held 474,319,516 shares, representing 36.58% of the issued share capital[171] - Mitsubishi UFJ Financial Group, Inc. held 65,224,166 shares, representing 5.03% of the issued share capital[171] - The remaining life of the Share Award Scheme is approximately 2 months as of the date of the annual report[167] - CR Hospital Investment acquired 76.10% equity interests in Liaoning CR Healthcare and 100% equity interests in Shenzhen CR Healthcare for RMB 3,394,607,000[177][178] - CR Hospital Investment also acquired 80% equity interests in the JE Subject for RMB 244,536,000 and purchased debts owed by the JE Subject amounting to RMB 316,944,600[179][182] - The equity transfers of the LH and JE transactions were completed by the end of June 2023[180][

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 10,107,500, an increase of 28.0% from RMB 7,901,287 in 2022[2] - Profit attributable to equity holders of the parent company was RMB 257,680, a decrease of 3.3% from RMB 265,855 in 2022[2] - Basic and diluted earnings per share for 2023 were RMB 0.20, compared to RMB 0.21 in 2022[3] - Proposed final dividend per share increased to RMB 0.06 from RMB 0.03 in 2022[2] - Gross profit for the year was RMB 1,905,837, up 46.0% from RMB 1,305,835 in 2022[4] - Total comprehensive income for the year was RMB 313,584, down from RMB 329,887 in 2022[6] - The adjusted profit before tax for the group was RMB 492.92 million for the year ended December 31, 2023[17] - The company reported a pre-tax profit of RMB 4,477,328 thousand for 2023, compared to RMB 3,630,392 thousand in 2022, indicating an increase of approximately 23.3%[28] - The company reported a net profit of RMB 328,281,000 for the year, compared to RMB 328,281,000 in the previous year, indicating stable performance year-over-year[37] - The consolidated net profit for the reporting period was RMB 328 million, unchanged from the previous fiscal year, with earnings per share at RMB 0.20[41] Assets and Liabilities - Non-current assets totaled RMB 10,225,113, a decrease from RMB 11,051,287 in 2022[7] - Current assets decreased to RMB 3,429,079 from RMB 6,766,287 in 2022[7] - Total liabilities increased to RMB 6,641,126 from RMB 7,163,674 in 2022[8] - Net assets attributable to equity holders of the parent company decreased to RMB 5,811,794 from RMB 9,505,944 in 2022[8] - Total assets as of December 31, 2023, amounted to RMB 13,654,192 thousand, a decrease from RMB 17,817,574 thousand in the previous year[21] - Total liabilities stood at RMB 6,641,126 thousand, down from RMB 7,163,674 thousand as of December 31, 2022[21] - The total liabilities for the company were reported at RMB 1,731,495,000 in 2023, slightly down from RMB 1,734,297,000 in 2022, showing a marginal decrease of about 0.2%[34] - The total current liabilities reached RMB 5,124,310 thousand, with trade payables and notes payable at RMB 1,734,297 thousand[39] - The total non-current liabilities were RMB 2,039,364 thousand, with interest-bearing bank loans at RMB 1,017,263 thousand[39] - The group's total assets amounted to RMB 12,693,264 thousand, reflecting a strong asset base[39] Revenue Breakdown - Total revenue for the group was RMB 10.11 billion, with hospital business contributing RMB 9.41 billion and other businesses contributing RMB 702.25 million[18] - Hospital services generated RMB 5,473,459 thousand in revenue, up from RMB 4,084,293 thousand in 2022, reflecting a growth of about 34.0%[23] - Outpatient services revenue increased to RMB 3,932,694 thousand from RMB 2,968,853 thousand, marking a growth of approximately 32.5%[23] - The hospital business revenue reached RMB 9.41 billion, reflecting a 33.4% year-on-year growth from RMB 7.05 billion[47] - Outpatient service revenue was RMB 3.93 billion, up 32.5% year-on-year, while inpatient service revenue was RMB 5.47 billion, a 34.0% increase[49] Cost and Expenses - The group's total costs amounted to RMB 8.20 billion, with hospital business costs at RMB 7.67 billion and other business costs at RMB 530.35 million[18] - The total cost of goods sold for 2023 was RMB 4,477,328 thousand, up from RMB 3,630,392 thousand in 2022[28] - The company’s administrative expenses totaled RMB 710,424 thousand in 2023, compared to RMB 2,635,228 thousand in 2022, reflecting a significant increase in operational costs[28] - Administrative expenses totaled RMB 971 million, reflecting a year-on-year increase of 20.0%, but growth was controlled due to effective cost management[53] Goodwill and Impairment - The group recognized goodwill impairment losses of RMB 141.02 million during the reporting period[17] - The group faced a significant impairment loss of RMB 141 million related to goodwill and other assets, which reduced pre-tax profit by RMB 466 million[54] Dividends and Shareholder Returns - The company proposed a final dividend of RMB 0.06 per share for 2023, compared to RMB 0.037 per share in 2022, which is an increase of approximately 62.2%[30] - The ability to distribute dividends is contingent upon the group's financial condition, operational performance, liquidity, capital requirements, and any restrictions imposed by Cayman Islands law[69] Corporate Governance and Compliance - The company confirmed compliance with the corporate governance code during the fiscal year ending December 31, 2023, and will continue to review and meet shareholder expectations[72] - The audit committee, consisting of three independent non-executive directors, reviewed the financial reporting system and internal controls for the fiscal year ending December 31, 2023[73] - The external auditor, KPMG, confirmed that the financial data disclosed in the preliminary announcement aligns with the audited financial statements for the fiscal year ending December 31, 2023[74] Legal Matters - The Beijing High People's Court upheld the first-instance ruling regarding the YanHua IOT agreement, declaring the unilateral termination by YanHua Phoenix and YanHua Hospital invalid, and ordered YanHua Phoenix to pay RMB 14,400,000 in damages for breach of the agreement[75] - The company received RMB 14,400,000 in penalty payments from YanHua Phoenix through court enforcement in April 2022, following a lawsuit filed in January 2022[75] - The company initiated a new lawsuit in September 2022 against YanHua for additional damages incurred from 2019 to the time of the lawsuit, including management fees and supply chain costs[75] - The company will continue to take all appropriate actions to protect its interests and those of its shareholders regarding the YanHua IOT agreement dispute[75] Strategic Focus and Future Plans - The group has adopted new accounting policies in 2023, including IFRS 17 on insurance contracts, which may impact future financial reporting[12] - The group is evaluating the impact of new accounting standards that will take effect from January 1, 2024, but expects no significant impact on consolidated financial statements[15] - The group has adjusted its business unit structure, now reporting segments as hospital business and other services, reflecting changes in service offerings[16] - The company plans to enhance its core capabilities in discipline construction, patient services, and operational management to achieve better operational efficiency and economic benefits[66] - The company aims to deepen regional integration management and establish regional medical alliances to enhance management across various healthcare institutions[66] - The company will continue to strengthen its neurology specialty and expand its capabilities in the southern China region[66]

Acquisition and Consolidation - The company acquired 76.10% equity interests in Liaoning CR Healthcare and 100% equity interests in Shenzhen CR Healthcare, along with other assets, through cash settlements[9]. - The financial results of the newly acquired entities will be consolidated from January 1, 2023, and the comparative data for 2022 will be restated to include results from June 2, 2022[9]. - The acquisition includes sponsorship rights for 31 LH Member Institutions and six JE Member Medical Institutions, completed by the end of June 2023[9]. - The Group completed the acquisition of 76.10% of Liaoning China Resources Health and 100% of Shenzhen China Resources Health, among other transactions, by the end of June 2023[10]. - The equity transfers for the aforementioned transactions were completed by the end of June 2023, with financial results consolidated from June 2, 2022[53]. Financial Performance - The Group's consolidated revenue for the Reporting Period was RMB 5,114 million, a 59.5% increase from RMB 3,206 million in the corresponding period[10]. - The consolidated net profit for the Reporting Period was RMB 487 million, up 80.0% from RMB 271 million in the corresponding period[10]. - Earnings per share for the Reporting Period increased to RMB 0.31, compared to RMB 0.19 in the corresponding period[10]. - Revenue from LH Member Institutions and JE Member Medical Institutions contributed RMB 2,091 million to the consolidated revenue, while their net profit contribution was RMB 257 million[11]. - The Group's net profit for the reporting period was RMB 487 million, reflecting a significant year-on-year increase of 79.9%[44]. - Revenue for the six months ended June 30, 2023, was RMB 5,114,026, an increase of 59.5% from RMB 3,205,932 in the same period of 2022[143]. - Profit before tax increased to RMB 625,126, up 99.0% from RMB 313,961 in the prior year[143]. - Profit for the period was RMB 486,868, a 80.0% increase from RMB 270,596 in the previous year[145]. Operational Metrics - The number of conventional out-patient visits increased by 5.3% to approximately 7,100,000, and in-patient visits rose by 9.7% to approximately 310,000[13]. - Medical business revenue from member hospitals grew by 10.4% year-on-year[12]. - As of June 30, 2023, the Group managed a total of 146 medical institutions across 10 provinces and cities in China[13]. - The utilization rate of beds in self-owned hospitals was 80.60% during the Reporting Period[17]. - Total revenue from medical business for the Reporting Period was RMB 6,541 million, reflecting the combined performance of various medical institutions[17]. Expenses and Costs - The cost of sales and services for the first half of 2023 was RMB (4,024,751), compared to RMB (3,766,242) in 2022, indicating an increase of about 6.9%[21]. - Administrative expenses for the first half of 2023 were RMB (411,038), compared to RMB (396,023) in the same period of 2022, showing an increase of about 3.8%[21]. - Selling and distribution expenses increased to RMB (5,278) in the first half of 2023 from RMB (1,955) in 2022, indicating a significant rise[21]. - The finance costs remained stable at RMB (9,542) for the first half of 2023, unchanged from the previous year[21]. Cash Flow and Liquidity - The net cash flows from operating activities for the six months ended June 30, 2023, were RMB 540,437,000, compared to RMB 96,598,000 in the same period of 2022[156]. - The net cash flows from investing activities for the same period were RMB 398,705,000, significantly up from RMB 7,226,000 in 2022[156]. - The company reported a net increase in cash and cash equivalents of RMB 902,638,000, compared to RMB 59,537,000 in the previous year[158]. - Cash and cash equivalents at the end of the period stood at RMB 4,003,347,000, up from RMB 3,012,683,000 at the end of June 2022[158]. Employee and Staff Costs - As of June 30, 2023, the Group had a total of 20,189 full-time employees, a decrease from 20,622 employees as of December 31, 2022[75][78]. - For the reporting period, staff costs amounted to approximately RMB 1,667 million, compared to RMB 952 million in the corresponding period[75][78]. - The Group recognizes the importance of attracting and retaining qualified medical staff to ensure the sustainability of its operations[70]. Risk Management and Compliance - The Group's risk management and internal control systems are designed to protect assets and ensure compliance with relevant laws and regulations[91][92]. - The management closely monitors foreign exchange rate fluctuations to manage currency risk, without using any derivative contracts for hedging[72]. - The Board will continue to review and optimize the risk management and internal control systems in line with business development[93]. Share Capital and Dividends - The Group did not declare any interim dividend for the reporting period, consistent with the corresponding period[81][84]. - The share capital remained stable at RMB 267,000[149]. - The statutory surplus reserve was reported at RMB 228,546,000, unchanged from the previous period[153]. Future Strategies and Market Outlook - The Group aims to enhance its operational efficiency by integrating local healthcare systems and promoting the development of both leading hospitals and small to medium-sized hospitals[60]. - The medical service market in China is expected to maintain rapid growth due to an aging population and improved living standards[61]. - The company plans to continue expanding its market presence and enhancing its service offerings in the healthcare sector, focusing on both self-owned and third-party hospital collaborations[197].