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].

Financial Performance - The revenue for the six months ended June 30, 2023, was RMB 5,114,026 thousand, an increase from RMB 3,205,932 thousand for the same period in 2022, representing a growth of approximately 59.5%[2] - Gross profit for the same period was RMB 1,089,275 thousand, compared to RMB 605,460 thousand in 2022, indicating a gross margin improvement[2] - The net profit attributable to equity holders of the parent company was RMB 244,669 thousand, up from RMB 270,596 thousand in the previous year, with basic and diluted earnings per share both at RMB 0.31[3] - The total segment profit for the six months ended June 30, 2023, was RMB 727,214 thousand, compared to RMB 378,269 thousand for the same period in 2022[12][13] - The company reported a pre-tax profit of RMB 625,126 thousand for the six months ended June 30, 2023[12] - The consolidated net profit for the reporting period was RMB 488 million, up from RMB 271 million in the same period last year, reflecting an increase of 80.4%[42] - The profit contribution from the self-owned hospital segment was RMB 646 million, reflecting a 131.8% increase compared to the previous year[54] - The group recorded a net profit of RMB 487 million, an increase of 79.9% year-on-year, with RMB 257 million contributed by the Liaojian and Jiangneng targets[60] Assets and Liabilities - Total non-current assets as of June 30, 2023, amounted to RMB 10,902,214 thousand, slightly down from RMB 11,051,287 thousand at the end of 2022[4] - Current assets increased to RMB 7,602,176 thousand from RMB 6,766,287 thousand, driven by an increase in trade receivables[4] - Total assets decreased to RMB 8,940,075 thousand from RMB 12,693,264 thousand, reflecting a significant reduction in total equity[5] - Total liabilities as of June 30, 2023, were RMB 11,325,340 thousand, including interest-bearing bank loans of RMB 2,434,037 thousand[15] - The total liabilities of the group amounted to RMB 7.163 billion, with current liabilities at RMB 5.124 billion[41] Cash Flow and Financial Management - The company reported a net current liability of RMB (1,962,139) thousand as of June 30, 2023, compared to a net current asset of RMB 1,641,977 thousand at the end of 2022[5] - The group has unutilized bank credit facilities of approximately HKD 2.93 billion and RMB 2.38 billion (approximately RMB 5.08 billion) as of June 30, 2023[7] - The board has reviewed the cash flow forecast for the next twelve months and believes that the group will have sufficient credit to repay its debts[7] - The company’s cash and cash equivalents, along with pledged deposits, totaled RMB 4,003,347 thousand as of June 30, 2023[15] - The company has a total credit facility of HKD 5.2 billion from overseas banks, with HKD 1.1 billion being a five-year committed loan and HKD 3 billion being a revolving credit facility[64] Operational Highlights - The company is primarily engaged in providing comprehensive medical services and hospital management services in mainland China[6] - The company managed and operated 146 medical institutions across 10 provinces and cities in China as of June 30, 2023[43] - The outpatient visits and inpatient admissions for the group’s member hospitals increased by 5.3% and 9.7% year-on-year, totaling approximately 7.1 million and 310,000 visits, respectively[43] - The total number of hospitals operated increased to 146, with a breakdown of 13 tertiary hospitals, 27 secondary hospitals, and 48 primary hospitals[44] - Inpatient services generated revenue of RMB 2,880,905 thousand, while outpatient services contributed RMB 1,863,619 thousand[20] Strategic Initiatives - The company aims to expand its market presence and enhance its service offerings through strategic initiatives in the healthcare sector[6] - The company plans to expand its market presence and enhance its service offerings through new product development and strategic acquisitions[48] - The group plans to enhance its capital structure and pursue mergers and acquisitions of quality hospitals to achieve its strategic goals during the 14th Five-Year Plan[63] - The company is focusing on market expansion and new product development, which are expected to drive future revenue growth and enhance competitive positioning[37] Accounting and Reporting - The group has adopted new accounting policies in 2023, including IFRS 17 on insurance contracts and amendments to IAS 1 and IAS 8, which did not have a significant impact on the financial statements[8] - The financial data is presented in RMB, rounded to the nearest thousand, and is based on historical cost conventions, except for certain financial assets measured at fair value[7] - The group applies the equity method for accounting for business combinations under common control, recognizing acquired assets and liabilities at their previous carrying amounts[9] - The group has not applied any new standards or interpretations that are not yet effective during the reporting period[8] Employee and Operational Challenges - Employee costs for the reporting period were approximately RMB 1.667 billion, compared to RMB 0.952 billion for the corresponding period[67] - The company employed a total of 20,189 full-time employees as of June 30, 2023, down from 20,622 employees as of December 31, 2022[67] - The company is facing talent shortages and is implementing measures to attract and retain qualified medical personnel to ensure the stability of its hospital operations[66] Governance and Compliance - The company is a limited liability company registered in the Cayman Islands on February 28, 2013[74] - The company is listed on the Hong Kong Stock Exchange[78] - The board of directors includes executive directors Song Qing, Yu Hai, Shan Baojie, and Yang Min, along with non-executive director Hu Hui and independent non-executive directors Hu Dingxu, Kuang Guoguang, and Fu Tingmei[80] - The announcement date is August 22, 2023, indicating recent developments in the company[80] - The company has no significant contingent liabilities or guarantees that would materially affect its financial position as of June 30, 2023[67]

[Supplemental Announcement to 2022 Annual Report](index=1&type=section&id=Further%20Information%20Regarding%20the%20Annual%20Report%20for%20the%20Year%20Ended%20December%2031%2C%202022) This announcement supplements the 2022 annual report, detailing valuation methods for goodwill and accounts receivable impairment [Explanation of Valuation Methodologies Adopted](index=1&type=section&id=Reasons%20for%20Adopting%20Certain%20Valuation%20Methodologies) This section clarifies valuation methods and rationale for goodwill and accounts receivable impairment at Huaiyin Hospital [Goodwill Impairment: Discounted Cash Flow Model](index=1&type=section&id=Provision%20for%20Goodwill%20Impairment%20%E2%80%94%20Discounted%20Cash%20Flow%20Model) The company assessed Huaiyin Hospital's goodwill impairment using the discounted cash flow model, aligning with IAS 36 - The company assessed goodwill impairment for Huaiyin Hospital using the income approach (discounted cash flow model), which complies with **International Accounting Standard 36 – Impairment of Assets**[1](index=1&type=chunk) - This method was adopted because Huaiyin Hospital has a long financial history, providing a reliable basis for forecasting future performance, thus its recoverable amount is valued based on the present value of future cash flows[1](index=1&type=chunk)[2](index=2&type=chunk) [Accounts Receivable Provision: Expected Credit Loss Model](index=2&type=section&id=Accounts%20Receivable%20Provision%20%E2%80%94%20Expected%20Credit%20Loss%20Model) The company assessed Huaiyin Hospital's accounts receivable impairment using the IFRS 9 expected credit loss model - Accounts receivable impairment assessment follows the requirements of **International Financial Reporting Standard 9 – Financial Instruments**, utilizing the expected credit loss model[3](index=3&type=chunk) - The company applies a simplified approach to calculate expected credit losses, recognizing loss allowances based on lifetime expected credit losses at each reporting date without tracking credit risk changes[3](index=3&type=chunk) - The company has established a provision matrix to calculate losses, based on past credit loss experience and adjusted for debtor-specific forward-looking factors and economic conditions[3](index=3&type=chunk)

Business Model and Strategy - In 2022, the company adjusted its business model from focusing on operational efficiency to a sustainable development model known as "1+X," aiming to enhance medical technology and create more value for public health[16]. - The new development model is expected to lead to high-quality and sustainable growth, with a focus on creating reasonable surpluses[16]. - The company is committed to strengthening supply chain management and financial resources to support its new business strategy[16]. - The Group aims to complete the acquisition of Liaojian and Jiangneng projects and focus on merging quality state-owned hospitals[25]. - The Group's strategy includes expanding its business scale and establishing an efficient regional medical system[25]. - The Group plans to enhance profitability by improving medical service quality and operational efficiency while focusing on core functions such as strategy and finance[102]. Financial Performance - The annual medical business income totaled RMB8.336 billion, representing a slight increase of 0.8% year-on-year[19]. - The net profit attributable to the owners of the parent was RMB139 million, a year-on-year decrease of 66.7% due to operating losses and impairments from the acquisition of Huaiyin Hospital[19]. - The Group recorded a net profit of RMB159 million, a decrease of 62.6% year-on-year, primarily due to operating losses and exchange losses[30]. - The Group's net profit for the Reporting Period was RMB159 million, representing a year-on-year decrease of approximately 62.6%[81]. - The Group's income tax expenses amounted to RMB83 million during the Reporting Period, compared to a credit figure of RMB155 million in FY2021[80]. - The Group's total staff cost for FY2022 was approximately RMB 1.78 billion, an increase from RMB 1.18 billion in FY2021, attributed to the consolidation of certain hospitals[130]. Operational Metrics - The Group's annual outpatient visits increased by 2.1% year-on-year, while inpatient visits rose by 1.5%[19]. - The Group managed and operated 116 medical institutions across 8 provinces, with annual outpatient visits reaching approximately 15.27 million, a 41.6% increase from 2021[32]. - The total number of patients treated in 2022 was 15,266,657, reflecting a significant operational scale[42]. - The total number of operational beds was 11,115 with an overall utilization rate of 73%[42]. - The number of outpatient visits reached 15,266,657, while inpatient visits totaled 286,152, contributing to a total medical business revenue of RMB 8,336,458,000[42]. Revenue Breakdown - Revenue from self-owned hospitals was RMB 5,178,404,000, while IOT/OT hospitals generated RMB 430,637,000 in revenue[48]. - The revenue from the self-owned hospital segment increased by 0.9% year-on-year to approximately RMB 6.76 billion, while segment results decreased by 14.7% to approximately RMB 437 million[55]. - The revenue from outpatient visits was RMB 4,158,753,000, and inpatient visits generated RMB 4,021,749,000[48]. - The revenue from general healthcare services increased significantly by 108.3% to RMB 287 million[60]. Challenges and Impairments - The Group experienced a 10% increase in the number of patients treated compared to the previous year[41]. - The Group did not have any significant investments accounting for 5% or more of total assets as of December 31, 2022[89]. - For the fiscal year ended December 31, 2022, the Company recorded a provision for goodwill impairment of approximately RMB108 million due to the gradual loss of medical staff at Huaiyin Hospital, which significantly impacted its operations[73]. - Huaiyin Hospital's medical business revenue dropped by more than 50% year-on-year in 2022, resulting in an operating loss of approximately RMB76 million[73]. Employee and Talent Management - The total number of full-time employees increased to 9,668 as of December 31, 2022, from 8,454 in the previous year[130]. - Employee costs for the fiscal year 2022 amounted to approximately RMB 1.78 billion, up from RMB 1.18 billion in the fiscal year 2021, attributed to the consolidation of several hospitals during the year[133]. - The Group is committed to providing a safe and harassment-free working environment for employees, emphasizing workplace safety throughout the year[165]. - The Group has implemented a talent attraction program in response to the attrition of medical staff at Huaiyin Hospital to improve operations[73]. Environmental and Governance Policies - The Group has implemented environmental policies in compliance with PRC laws, with no material environmental claims or penalties reported during the year ended December 31, 2022[151]. - The Group has established a "Hazardous Substances Safety Management Plan" and a "Medical Waste Management System" for all hospitals to manage hazardous materials and medical waste[152]. - The Group's environmental, social, and governance report will be published alongside the annual report, detailing measures taken in these areas[160]. Dividends and Shareholder Information - The Group proposes a 2022 Final Dividend of 3.7 HK cents per Share, down from 12 HK cents in FY2021, totaling approximately HK$48 million[171]. - The Group's ability to pay dividends is contingent on its financial condition, operations, liquidity, and capital requirements[174]. - The company has no assurance that dividends will be paid in any particular amount for any given period[179].

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。 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2022年12月31日止年度全年業績公告 | --- | --- | --- | |--------------------------------------------------|-----------|-----------| | | | | | 財務摘要 | 2022 年 | 2021 年 | | | | | | 收益（人民幣千元） | 5,620,461 | 4,447,477 | | 母公司擁有人應佔年度利潤（人民幣千元） | 138,974 | 417,915 | | 母公司普通股權益持有人應佔每股盈利（基本及攤薄） | | | | （人民幣） | 0.11 | 0.33 | | 建議分派之每股末期股息（港 ...

Financial Performance - The consolidated revenue for the reporting period amounted to RMB 2,850 million, a year-on-year increase of 60.8% from RMB 1,772 million[12]. - Net profit for the reporting period was RMB 215 million, slightly up from RMB 205 million in the corresponding period, indicating stable growth[12]. - Earnings per share remained unchanged at RMB 0.16 compared to the previous period[12]. - Total revenue from medical business for H1 2022 reached RMB 4,017,215, an increase from RMB 3,287,449 in the corresponding period[22]. - The net profit for H1 2022 was RMB 214,747, compared to a loss of RMB 5,740 in the corresponding period[22]. - The Group recorded a net profit of RMB 215 million, representing a year-on-year increase of 4.6%[41]. - Revenue for the six months ended June 30, 2022, was RMB 2,850,489, an increase of 61% compared to RMB 1,772,123 for the same period in 2021[118]. - Gross profit for the same period was RMB 524,266, representing a gross margin of approximately 18.4%[118]. - Profit before tax for the six months ended June 30, 2022, was RMB 254,175, a decrease of 5.9% from RMB 270,142 in the prior year[118]. - Comprehensive income for the period was RMB 214,747, compared to RMB 205,325 for the same period in 2021, indicating a slight increase[118]. Operational Metrics - The total number of outpatient visits increased by 66.1% to approximately 7.87 million, while inpatient visits rose by 11.4% to around 143,000[15]. - The number of operational beds increased to 11,369 with an overall utilization rate of 70.7%[19]. - Out-patient visits totaled 7,869,968, while in-patient visits were 142,877 for H1 2022[19]. - Total number of patients treated in H1 2022 was 7,869,968, with 4,941,511 being out-patients[19]. - The utilization rate of self-owned hospitals was 73.7%, while IOT/OT hospitals had a utilization rate of 51.6%[19]. Revenue Breakdown - Revenue from out-patient visits was RMB 1,996,751, and revenue from in-patient visits was RMB 1,971,362[22]. - Total revenue from medical business for self-owned hospitals increased by 7.7% year-on-year to approximately RMB 3.29 billion[29]. - The segment results for self-owned hospitals recorded a decrease of 1.7% to approximately RMB 265 million[31]. - IOT/OT hospitals segment achieved a 0.9% increase in medical business revenue, totaling RMB 729,766[34]. - IOT/OT hospitals segment results increased by 19.2% to RMB 58,843[34]. - Revenue from general healthcare services and hospital management services increased by 46.6% to RMB 121,373[32]. Expenses and Costs - The company reported administrative expenses of RMB 256,204, an increase from RMB 237,078 in the previous period[22]. - Total operating expenses of the headquarters decreased to approximately RMB 36 million, accounting for 12.4% of total administrative expenses[35]. - Staff costs for the reporting period were approximately RMB 836 million, a significant increase from RMB 471 million in the corresponding period[63]. - Selling and distribution expenses were RMB 8,779, while administrative expenses totaled RMB 292,473, indicating an increase in operational costs[118]. - The Group's profit before tax for the six months ended 30 June 2022 was significantly impacted by a cost of inventories sold amounting to RMB 1,476,492, an increase of 59.7% compared to RMB 924,993 in 2021[198]. Assets and Liabilities - The total assets as of June 30, 2022, were reported at RMB 5,000,000, compared to RMB 4,500,000 as of December 31, 2021, showing a growth in asset base[119]. - Total non-current assets increased to RMB 6,708,546, up from RMB 6,543,020, representing a growth of approximately 2.52%[120]. - Current assets rose to RMB 4,154,816, compared to RMB 3,924,582, reflecting an increase of about 5.86%[120]. - Total non-current liabilities surged to RMB 1,123,016, compared to RMB 177,423, indicating a dramatic rise[122]. - Total liabilities as of June 30, 2022, amounted to RMB 3,621,157, with interest-bearing bank borrowings at RMB 1,646,624[178]. Strategic Initiatives - The Group's strategic expansion includes the consolidation of additional medical institutions into its operations, enhancing its market presence[13]. - Future plans include enhancing the "RUNXIN" patient service system and modernizing hospital operations to improve service quality[53]. - The Group aims to improve operational efficiency and medical service quality through policy research on medical insurance payment reform and timely measures[55]. - The Group plans to seize merger and acquisition opportunities during the state-owned hospital reform period to accelerate growth[55]. - The Group recognizes the importance of maintaining relationships with patients and partners for sustainable development[62]. Governance and Compliance - The Company confirmed compliance with all material code provisions of the Corporate Governance Code during the reporting period[71]. - The risk management and internal control systems are designed to protect the Group's assets and ensure compliance with relevant laws and regulations[74]. - The Board will continue to optimize risk management and internal control systems in line with business development[80]. - The Group has performed annual impairment reviews of sponsorship rights, service contracts, and goodwill, concluding no impairment was required as of June 30, 2022[85]. Shareholder Information - China Resources Company Limited holds 474,319,516 shares, representing approximately 36.58% of the total issued shares[104]. - Mitsubishi UFJ Financial Group, Inc. holds 77,645,666 shares, accounting for about 5.98% of the total issued shares[104]. - The Board did not recommend the payment of any interim dividend for the reporting period, consistent with the corresponding period[68]. - No share options were granted, exercised, cancelled, or lapsed during the reporting period, and there are no outstanding share options under the Share Option Scheme[89].

Financial Performance - The Group recorded a net profit attributable to the parent of RMB418 million, an increase of 34.8% year-on-year and 6.9% compared to 2019[15]. - Total medical business revenue was RMB8,272 million, representing a rise of 24.5% year-on-year and a 20.4% increase compared to 2019[15]. - The Group achieved a consolidated revenue of RMB 4,447 million for the year ended December 31, 2021, representing a 61.6% increase from RMB 2,751 million in 2020 and a 109.8% increase from RMB 2,115 million in 2019[31]. - The net profit for the Group was RMB 426 million in 2021, up 33.1% from RMB 320 million in 2020 and a slight increase of 6.2% from RMB 401 million in 2019[32]. - The Group recorded a net profit of RMB 426,000,000 in 2021, representing a year-on-year increase of approximately 33%[95]. - The Group's earnings per share increased to RMB 0.33 in 2021, up from RMB 0.25 in 2020 and RMB 0.31 in 2019[32]. Operational Metrics - In 2021, the number of outpatient visits to member hospitals increased by 39.9% year-on-year and by 22.8% compared to 2019[15]. - The number of inpatient visits grew by 28.3% year-on-year and by 11.7% compared to 2019[15]. - The outpatient volume of member hospitals increased by 39.9% year-on-year and by 22.8% compared to 2019, while inpatient volume grew by 28.3% year-on-year and by 11.7% compared to 2019[17]. - The annual number of inpatient visits was approximately 282,000, reflecting an increase of 28.3% compared to 2020[37]. - The Group's member hospitals have shown a consistent trend of increasing operational metrics, indicating a positive outlook for future performance[40]. Strategic Initiatives - The company aims to be a leading healthcare group in China and a pioneer in the reform of state-owned medical institutions as part of its 14th Five-Year strategic plan[13]. - The Group aims to establish regional leading hospital clusters and academic specialty hospital clusters during the 14th Five-Year Plan, focusing on organic growth and external expansion[25]. - The Group plans to enhance medical technology, quality, and service capabilities to achieve high-quality growth and boost commercial value through group management and efficiency improvements[26]. - The company expressed gratitude to shareholders, staff, and frontline medical workers for their support during the pandemic[14]. Acquisitions and Consolidations - The Group consolidated the financial statements of Guangdong 999 Brain Hospital and Xukuang Hospital starting from August 2021, enhancing the reflection of business performance in financial statements[24]. - The acquisition of Huaiyin Hospital, a Grade II comprehensive for-profit hospital, was completed in June 2021, further expanding the Group's presence in the Yangtze River Delta region[20]. - The Group completed the acquisition of Huaiyin Hospital, which has been consolidated into the Group's financial statements since June 2021[38]. - The acquisitions of Jinan Zhongqi Hospital and Huaiyin Hospital contributed to the revenue growth in the self-owned hospitals segment[76]. Employee and Operational Management - As of December 31, 2021, the Group had a total of 8,454 full-time employees, an increase from 4,903 employees as of December 31, 2020[133]. - For FY2021, the staff cost was approximately RMB 1.18 billion, up from RMB 685 million in FY2020, primarily due to the acquisition and consolidation of certain hospitals[133]. - The Group has taken measures to attract, train, and retain qualified medical personnel to mitigate talent risk[130]. - The Group emphasizes the importance of relationships with patients and partners for sustainable business development[130]. Financial Position and Investments - As of December 31, 2021, the Group's consolidated bank balances and cash amounted to approximately RMB 3.23 billion, an increase from RMB 3.09 billion as of December 31, 2020[115]. - The Group's interest-bearing bank borrowings totaled approximately RMB 1.65 billion as of December 31, 2021, compared to approximately RMB 684 million as of December 31, 2020, indicating a significant increase[116]. - The Group's gearing ratio was 15.9% as of December 31, 2021, up from 7.6% as of December 31, 2020, reflecting increased leverage[117]. - The Group's investment in joint ventures and associates contributed a profit of RMB 83,553,000 during the reporting period[68]. Corporate Social Responsibility and Compliance - The Group has implemented strict environmental policies and complied with all relevant PRC laws regarding environmental protection during the year[151]. - The Group has developed various safety management plans, including the "Hazardous Substances Safety Management Plan" and "Medical Waste Management System" to ensure compliance with environmental regulations[152]. - The Group considers its employees as key to sustainable business growth and maintains a high standard of health and safety measures[165]. - The Group emphasizes a commitment to employee safety and equal opportunities, integrating these principles into its corporate responsibility policies[168]. Dividend and Shareholder Information - The Group proposes a final dividend of 12 HK cents per share for FY2021, an increase from 8.82 HK cents in FY2020, totaling approximately HK$156 million[171][175]. - The Group's ability to pay dividends is subject to its financial condition, operations, liquidity, and capital requirements[174][177]. - As of December 31, 2021, the Company's share premium amounted to RMB5,785,472,000, down from RMB5,877,796,000 in 2020, available for distribution to shareholders[183][189].

Financial Performance - The consolidated revenue for the six months ended June 30, 2021, amounted to RMB 1,772 million, a 95.2% increase from RMB 907 million in the same period last year[8]. - Net profit for the period was RMB 205 million, up 86.4% from RMB 110 million in the same period last year[8]. - Earnings per share increased to RMB 0.16, compared to RMB 0.09 in the same period last year[8]. - The total revenue from medical business for the first half of 2021 was RMB 3,777.148 million, with RMB 1,138.886 million from consolidated hospitals, RMB 1,914.703 million from unconsolidated hospitals, and RMB 723.559 million from IOT/OT hospitals[18]. - The group reported a net profit of RMB 205.325 million for the first half of 2021, with administrative expenses amounting to RMB 127.506 million[18]. - The financial results demonstrate a robust growth trajectory in the medical business, highlighting the effectiveness of the group’s expansion strategies[18]. - The effective control of the COVID-19 epidemic has led to a satisfactory recovery of operations and growth in revenue across the Group's member medical institutions[25]. - The Group recorded a net profit of RMB 205 million, representing an increase of 86.3% year-on-year[42]. - The company reported a significant increase in other income, which rose to RMB 54,697 from RMB 38,779, indicating improved operational efficiency[126]. - The company reported a fair value loss on financial assets at FVTPL of RMB 21,876,000, impacting overall profitability[167]. Operational Metrics - The overall number of out-patients and in-patients increased by 50.5% and 36.8%, respectively[8]. - The group operated 11,097 beds with an overall bed utilization rate of 71.6% during the first half of 2021, accommodating 128,270 inpatients[14][18]. - The revenue from outpatient visits was RMB 1,784.523 million, while inpatient visits generated RMB 1,928.301 million in revenue during the same period[18]. - The group’s outpatient and inpatient visit numbers reflect a significant operational scale, indicating strong demand for healthcare services[12][13]. - The segment results for unconsolidated hospitals showed a profit of RMB 154,745,000, indicating healthy operational performance[167]. Acquisitions and Expansions - On March 28, 2021, the company agreed to acquire approximately 99.19% of Huaiyin Hospital for a consideration of approximately RMB 880 million[9]. - The acquisition of Huaiyin Hospital was completed on June 17, 2021, and its financial statements have been consolidated into the Group[9]. - Jianghua Management Limited acquired 99.19% of Sinophi China Hospitals Limited for approximately RMB 880 million, completing the acquisition on June 17, 2021[11]. - The acquisition of Huaiyin Hospital indirectly increased the group’s operational capacity, as the hospital has approximately 1,190 open beds[11]. - The Group aims to enhance its core medical services and develop six discipline clusters, including cardiovascular and oncology, to strengthen its brand in these areas[55][57]. Financial Position - As of June 30, 2021, the group managed a total of 123 medical institutions across 8 provinces and cities in China, with approximately 4.739 million outpatient visits and 128,000 inpatient visits during the reporting period[12][13]. - As of June 30, 2021, the Group's consolidated bank balances and cash amounted to approximately RMB 2.49 billion, down from approximately RMB 3.09 billion as of December 31, 2020[60]. - The Group's gearing ratio as of June 30, 2021, was 16.3%, an increase from 7.6% as of December 31, 2020[61]. - Total non-current assets as of June 30, 2021, amounted to RMB 6,519,806, an increase from RMB 4,816,301 as of December 31, 2020[130]. - Total current assets were RMB 3,806,706, down from RMB 4,146,892 at the end of 2020, indicating a decrease in liquidity[130]. - Net current assets decreased to RMB 566,964 from RMB 1,939,706, highlighting a potential liquidity concern[130]. - Total liabilities were reported at RMB 3,705,924,000, including interest-bearing bank borrowings of RMB 1,663,511,000[177]. Staff and Management - As of June 30, 2021, the Group had a total of 6,097 full-time employees, an increase from 4,903 employees as of December 31, 2020, primarily due to the acquisition of Huaiyin Hospital[67]. - Staff costs for the six months ended June 30, 2021, were approximately RMB 471 million, compared to RMB 205 million for the same period in 2020, reflecting a significant increase[67]. - The Board did not recommend the payment of any interim dividend for the six months ended June 30, 2021, consistent with the previous year[71]. 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[82]. - The Audit Committee reviewed the unaudited consolidated interim results and confirmed compliance with relevant accounting standards and legal requirements[77]. - The Company confirmed compliance with all material code provisions of the Corporate Governance Code during the reporting period[75]. Future Strategies - The Group plans to improve operational efficiency and reduce costs while expanding existing hospitals and pursuing mergers and acquisitions[55][57]. - Future strategies include enhancing operational efficiencies and exploring potential acquisitions to strengthen market position[170].