股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 華潤醫療控股有限公司 呈交日期: 2025年8月1日 本月底法定/註冊股本總額： HKD 760,000 FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01515 | 說明 | | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | | 1,296,676,516 | | 0 | | 1,296,676,516 | | 增加 / 減少 (-) | | | | | | | | | | 本月底結存 | | | | 1,296,676,51 ...

Core Viewpoint - The electric laparoscopic stapler market in China is experiencing growth due to increasing demand for minimally invasive surgeries, despite facing challenges from centralized procurement policies leading to a market size decline in 2024 [1][14]. Overview - Staplers are essential high-value consumables in modern surgery, replacing manual suturing with devices that use titanium staples for tissue connection [2][14]. - The demand for electric laparoscopic staplers is rising as the number of minimally invasive surgeries increases, driven by an aging population and higher expectations for medical service quality [1][14]. Market Policy - The Chinese government has implemented various policies to support the development of the medical device industry, including electric laparoscopic staplers, creating a favorable environment for market growth [6][9]. Industry Chain - The upstream of the electric laparoscopic stapler industry includes suppliers of metals like stainless steel and titanium, as well as polymer materials and components like firing mechanisms and motors [10]. - The midstream involves the research and production of electric laparoscopic staplers, while the downstream focuses on medical institutions that utilize these devices [10]. Development Status - The market for electric laparoscopic staplers is projected to decline to 3.72 billion yuan in 2024, a decrease of 7.38% year-on-year, due to the impact of centralized procurement policies [1][14]. Competitive Landscape - The market for electric laparoscopic staplers in China is relatively stable, with higher entry barriers compared to manual types, and domestic manufacturers are increasingly competing with established international brands [16][19]. - As of May 2025, a total of 210 electric laparoscopic stapler approvals have been granted by the National Medical Products Administration in China [16]. Industry Representative Companies - Jiangsu Fenghe Medical Equipment Co., Ltd. focuses on the development and production of disposable surgical consumables, contributing to advancements in minimally invasive surgery [19]. - Ningbo David Medical Devices Co., Ltd. has a comprehensive product matrix, including electric laparoscopic staplers, and reported a revenue of 5.27 billion yuan in 2024, with 1.887 billion yuan from minimally invasive surgical instruments [21]. Development Trends - Future advancements in electric laparoscopic staplers are expected to integrate sensor and artificial intelligence technologies, enhancing automation and precision in surgical procedures [23].

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]

Overview - The core viewpoint of the article emphasizes the significant growth and transformation in China's hospital management sector, driven by government policies and increasing public health awareness [1][4][11]. Industry Background - The Chinese government has implemented various policies to promote the development of the healthcare industry, encouraging social capital to participate in medical services and advancing a multi-tiered healthcare system [4][11]. - The number of hospitals in China is projected to reach 39,000 by 2024, representing a year-on-year growth of 1.68% [1][9]. - The market size of the hospital management industry is expected to reach 806.28 billion yuan in 2024, with a year-on-year growth of 9.53% [1][11]. Industry Chain - The upstream of the hospital management industry includes medical devices, pharmaceuticals, hospital information management systems, and clinical information systems [7]. - The midstream consists of public hospitals, private hospital groups, and third-party hospital management service providers [7]. - The downstream includes patients and institutions requiring medical services, such as health check-up centers and nursing homes [7]. Current Development - The focus on improving medical quality and safety has led to significant advancements in healthcare services, with a notable increase in both the number of medical institutions and the quality of services provided [9]. - The rise in public health awareness has shifted patient expectations towards a more comprehensive range of services, including preventive care and health management [4][11]. Competitive Landscape - The hospital management industry features a mix of public hospitals, private hospital groups, and third-party service providers, each with distinct operational focuses and market strategies [13]. - Public hospitals are transitioning towards refined operations, while private hospitals emphasize market-driven models and specialized services [13]. - Third-party providers are adopting asset-light models to offer specialized management services, enhancing operational efficiency for hospitals [13]. Representative Companies - Aier Eye Hospital Group, established in 2002, has expanded its network to 881 facilities globally, with a significant presence in China [15]. - Runhua Service Group focuses on hospital logistics and management services, reporting a revenue of 904 million yuan in 2024, with a gross profit margin of 14.15% [17]. Future Trends - Hospitals are expected to enhance patient experience by streamlining processes such as online appointment scheduling and personalized medical services [19]. - There will be a stronger emphasis on cost control and resource optimization to improve operational efficiency amid policy pressures [19].

Core Viewpoint - CICC has downgraded the net profit forecast for China Resources Medical (01515) for 2025 by 20.8% to RMB 566 million, while introducing a net profit estimate of RMB 592 million for 2026, reflecting a 4.5% year-on-year increase. The firm maintains an outperform rating and a target price of HKD 5.0, indicating a potential upside of 23.2% based on 10.8x and 10.2x P/E ratios for 2025 and 2026 respectively [1]. Financial Performance - For 2024, the company reported revenue of RMB 9.855 billion, a year-on-year decline of 2.5%. The net profit attributable to shareholders was RMB 566 million, representing a significant year-on-year increase of 119.6%, with earnings per share of RMB 0.45, aligning with expectations [1]. - The hospital business generated revenue of RMB 9.185 billion in 2024, down 2.4% year-on-year. Outpatient visits increased by 1.3% and inpatient visits by 1.0%. Outpatient service revenue was RMB 3.665 billion, down 1.0%, while inpatient service revenue was RMB 5.294 billion, down 3.3% [3]. Operational Scale - As of the end of 2024, the company managed 105 medical institutions across 10 provinces and cities in China, including 13 tertiary hospitals, 22 secondary hospitals, and 41 primary hospitals and community centers. The total number of operational beds in self-owned hospitals was 18,567, with a bed occupancy rate of 82.9% [2]. Cost Structure - The administrative and other operating expense ratio for 2024 was 10.6%, an increase of 1.0 percentage points year-on-year, primarily due to new depreciation and amortization from hardware and software upgrades. The financial expense ratio decreased to 0.8%, down 0.5 percentage points year-on-year, attributed to an optimized financing structure and lower bank loan interest rates [4].

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].

Financial Performance - The revenue for the six months ended June 30, 2024, was RMB 4,976,334 thousand, a decrease of 2.7% compared to RMB 5,114,026 thousand for the same period in 2023[3]. - Gross profit for the same period was RMB 1,036,348 thousand, down from RMB 1,089,275 thousand, reflecting a gross margin of approximately 20.8%[3]. - Net profit for the period was RMB 511,655 thousand, representing an increase of 5.1% from RMB 486,868 thousand in the prior year[4]. - Earnings per share attributable to ordinary shareholders increased to RMB 0.34 from RMB 0.31, marking a growth of 9.7%[5]. - Adjusted profit before tax for the group was RMB 627,328 thousand for the six months ended June 30, 2024, compared to RMB 625,126 thousand for the same period in 2023, indicating a slight increase[14][18]. - The group reported a pre-tax profit of RMB 627,328 thousand for the six months ended June 30, 2024, after accounting for various losses and expenses[14]. - The net profit for the period was RMB 512 million, reflecting a year-on-year increase of 5.1%[41]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 9,609,161 thousand, compared to RMB 8,446,819 thousand as of December 31, 2023, indicating a growth of 13.7%[8]. - Total assets as of June 30, 2024, amounted to RMB 13,718,731 thousand, an increase from RMB 13,654,192 thousand as of December 31, 2023[17]. - Total liabilities as of June 30, 2024, were RMB 6,269,925 thousand, compared to RMB 6,641,126 thousand as of December 31, 2023, showing a decrease[17]. - The net current liabilities decreased significantly to RMB (587,188) thousand from RMB (1,778,294) thousand, showing improved liquidity[8]. - Non-current liabilities increased to RMB 2,160,355 thousand from RMB 1,433,753 thousand, reflecting a rise of 50.7%[8]. Cash Flow and Liquidity - The company reported a cash and cash equivalents balance of RMB 1,290,492 thousand, up from RMB 1,236,097 thousand, indicating a positive cash flow trend[7]. - The company has unutilized bank credit facilities of approximately RMB 5.31 billion, ensuring sufficient liquidity for debt repayment[10]. - The board believes that the company will have adequate credit to meet its liabilities over the next twelve months, supporting the going concern basis for financial reporting[10]. - As of June 30, 2024, the company had a total cash and bank balance of approximately RMB 1.34 billion, up from RMB 1.28 billion at the end of 2023[41]. Business Segments - Hospital business revenue was RMB 4,600,005 thousand, while other business revenue was RMB 376,329 thousand for the six months ended June 30, 2024[15]. - The group’s hospital business segment reported a profit of RMB 520,836 thousand, while the other business segment reported a profit of RMB 148,486 thousand for the same period[15]. - The operating revenue for the hospital business in the first half of 2024 was RMB 4.60 billion, a slight decrease of 3.0% year-on-year[35]. - The total revenue for other businesses was RMB 376.33 million, representing a year-on-year increase of 1.8%[38]. Operational Metrics - The number of outpatient visits and inpatient admissions grew by 3.5% and 3.0% respectively, indicating stable core business performance[30]. - Outpatient visits increased by 3.5% to 5,053,642, while inpatient visits rose by 3.0% to 282,090[37]. - The gross profit for the hospital business was RMB 922.64 million, with a gross margin of 20.1%[37]. Expenses and Taxation - The company reported a total tax expense of RMB 115.673 million for the period, down from RMB 138.258 million in the previous year, a decrease of approximately 16.3%[23]. - Income tax expenses were approximately RMB 116 million, a decrease of 16.3% year-on-year, with an effective tax rate of 18.4%[40]. - Administrative and other operating expenses increased by 5.3% to RMB 472 million, primarily due to upgrades in hardware and software to improve service quality[38]. - The company’s depreciation and amortization expenses totaled RMB 302.722 million, an increase from RMB 289.444 million in the previous year, reflecting a rise of approximately 4.5%[21]. - Financial expenses decreased to approximately RMB 39.84 million, down from RMB 61.15 million in the corresponding period[39]. Employee and Governance - As of June 30, 2024, the group had a total of 19,640 full-time employees, a decrease from 20,172 employees as of December 31, 2023[43]. - Employee costs, including salaries and other benefits, amounted to approximately RMB 1.704 billion, compared to RMB 1.667 billion in the corresponding period[43]. - The group confirmed compliance with all applicable corporate governance code provisions during the reporting period[53]. Dividends and Shareholder Returns - The company recognized dividends of RMB 75.915 million during the period, compared to RMB 42.353 million in the same period last year, an increase of about 79.3%[24]. - The board declared an interim dividend of RMB 0.05 per share for the six months ended June 30, 2024, with a total payout scheduled for October 25, 2024[46]. Legal Matters - The company received a court ruling on November 22, 2021, declaring the unilateral termination of the Yan Hua IOT Agreement by Yan Hua Phoenix and Yan Hua Hospital as invalid, requiring both parties to continue fulfilling their obligations under the agreement[55]. - Yan Hua Phoenix was ordered to pay RMB 14,400,000 as damages for breaching the Yan Hua IOT Agreement[55]. - The company filed for enforcement in January 2022 and received RMB 14.4 million in penalty payments in April 2022, but Yan Hua continued to refuse to comply with the agreement[55]. - A new lawsuit was initiated in September 2022 to claim damages for losses incurred due to Yan Hua's breach, including management fees and supply chain costs from 2019 to the time of the lawsuit[55]. Future Outlook and Strategy - The group aims to enhance core capabilities in discipline construction, patient services, and medical institution management, while optimizing operational management systems[52]. - The group has no plans for significant investments or capital asset acquisitions as of the announcement date, except for routine business operations[52]. - The group has adopted a share incentive plan to reward eligible individuals for their contributions, which expired on July 6, 2024[44]. - There were no major investments, acquisitions, or disposals during the reporting period, and no significant post-reporting events have occurred[49]. - The group has no significant contingent liabilities or guarantees that would materially affect its financial position or operations as of June 30, 2024[43]. Compliance and Reporting - The interim financial report for the six months ending June 30, 2024, has been reviewed and is compliant with relevant accounting standards and regulations[56].