1518 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，並明確表示概不會就因本公告全部或任何部分內容而產生或 因依賴該等內容而引致的任何損失承擔任何責任。 新世紀醫療控股有限公司（「本公司」）董事會（「董事會」）謹此宣佈，本公司將 於二零二五年八月二十七日（星期三）舉行董事會會議，藉以（其中包括）考慮 及批准刊發本公司及其附屬公司截至二零二五年六月三十日止六個月之中期 業績，以及處理其他事項。 承董事會命 新世紀醫療控股有限公司 董事長、執行董事兼首席執行官 Jason ZHOU先生 中國北京，二零二五年八月十三日 於本公告日期，董事會成員包括執行董事Jason ZHOU先生、辛紅女士及徐瀚先生；非執行董 事王思業先生、李素玉女士、楊躍林先生及解強先生；及獨立非執行董事吳冠雄先生、孫洪 斌先生、姜彥福先生及馬晶博士。 董事會會議召開日期 ...

Core Viewpoint - New Century Healthcare (01518) anticipates a significant shift from profit to loss for the six months ending June 30, 2025, projecting a loss attributable to shareholders between RMB 60 million and 70 million, compared to a profit of approximately RMB 25.2 million in the same period of 2024 [1] Group 1: Financial Performance - The company expects a loss attributable to shareholders of between RMB 60 million and 70 million for the upcoming six-month period [1] - In contrast, the company reported a profit of approximately RMB 25.2 million for the same period in 2024 [1] Group 2: Reasons for Performance Change - The board attributes the expected loss primarily to a decrease in demand for pediatric and obstetric services, leading to reduced revenue [1] - Additional factors contributing to the loss include impairment losses on certain goodwill and other long-term assets [1] - The reversal of deferred tax assets is also cited as a reason for the anticipated financial downturn [1]

Core Viewpoint - New Century Healthcare (01518) anticipates a significant loss for the six months ending June 30, 2025, with expected losses attributable to shareholders ranging between RMB 60 million to 70 million, a stark contrast to a profit of approximately RMB 25.2 million in the same period of 2024 [1] Summary by Relevant Categories Financial Performance - The company expects to report a loss of RMB 60 million to 70 million for the upcoming six-month period, compared to a profit of RMB 25.2 million in the previous year [1] Factors Influencing Performance - The anticipated shift from profit to loss is primarily due to a decrease in demand for pediatric and obstetric services, leading to reduced revenue [1] - Additional contributing factors include impairment losses on certain goodwill and other long-term assets, as well as the reversal of deferred tax assets [1]

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，並明確表示概不會就因本公告全部或任何部分內容而產生或 因依賴該等內容而引致的任何損失承擔任何責任。 盈利預警 本公告乃由新世紀醫療控股有限公司（「本公司」，連同其附屬公司「本集團」） 根據香港聯合交易所有限公司證券上市規則（「上市規則」）第13.09(2)條及香港 法例第571章證券及期貨條例第XIVA部項下內幕消息條文（定義見上市規則）而 作出。 本公司董事（「董事」）會（「董事會」）謹此告知本公司股東（「股東」）及潛在投資 者，根據對本集團截至二零二五年六月三十日止六個月之未經審核綜合管理 賬目及董事會目前可得資料的初步審閱，預期本集團於截至二零二五年六月 三十日止六個月將錄得本公司擁有人應佔虧損介乎人民幣60.0百萬元至人民幣 70.0百萬元（須待進一步調整及減值評估），而於二零二四年同期錄得本公司擁 有人應佔溢利約為人民幣25.2百萬元。 董事會認為上述預期由盈轉虧的情況主要是由於(i)兒科服務及婦產科服務的需 求減少導致收益減少；(ii)若干商譽及其他長期資產的減值虧損；及(iii)遞延稅 ...

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: 新世紀醫療控股有限公司 呈交日期: 2025年8月4日 I. 法定/註冊股本變動 | 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) | 01518 | 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 | | | | 490,025,000 | | 0 | | 490,025,000 | | 增加 / 減少 (-) | | | | | | | | | | 本月底結存 | | | | 490,025,000 | | 0 | | 490,025,000 | 第 2 頁 共 10 頁 v 1.1.1 FF301 III.已發行股份及/或庫存股份變 ...

Company Overview - New Century Healthcare Holdings Limited focuses on providing high-quality mid-to-high-end medical services to children and women, with its first hospital established in 2002 and officially operating since 2006 [2] - The company was one of the early entrants into the private pediatric healthcare market in Beijing, offering integrated pediatric and obstetric services [2] - New Century has established a partnership with Beijing Children's Hospital to enhance its medical technology and service quality, creating a standardized management system [2] Financial Performance - As of December 31, 2024, New Century Healthcare reported total revenue of 846 million yuan, a year-on-year decrease of 9.28% [1] - The net profit attributable to shareholders was 47.38 million yuan, down 43.71% year-on-year [1] - The gross profit margin stood at 40.75%, with a debt-to-asset ratio of 45.81% [1] Market Position and Valuation - The average price-to-earnings (P/E) ratio for the healthcare equipment and services industry is -1.82 times, with a median of 1.36 times [1] - New Century's P/E ratio is 7.85 times, ranking 8th in the industry [1] - Other competitors in the market include Giant Star Medical Holdings (0.36 times), Jingjiu Kangliao (0.38 times), Yihui Group (2.35 times), Ruici Medical (5.35 times), and Global Medical (5.65 times) [1] Recent Stock Performance - As of July 29, the Hang Seng Index fell by 0.15%, closing at 25,524.45 points [1] - New Century's stock price closed at 0.89 HKD per share, an increase of 8.54%, with a trading volume of 22,000 shares and a turnover of 19,100 HKD [1] - Over the past month, New Century's stock has declined by 1.2%, and year-to-date, it has decreased by 16.53%, underperforming the Hang Seng Index, which has risen by 27.43% [1]

Core Viewpoint - Hong Kong Stock Exchange has taken disciplinary action against New Century Healthcare Holdings Limited and several of its directors due to violations of listing rules related to a framework agreement with a related party [1][2] Group 1: Disciplinary Actions - New Century Healthcare and three executive directors, including Chairman and CEO Jason Zhou, have been reprimanded, while three independent non-executive directors have been criticized [1] - The exchange has mandated New Century Healthcare to conduct an independent internal review, and all involved directors must complete training [1] Group 2: Violations and Financial Impact - The investigation revealed that the executive directors allowed BJL, a joint venture partly owned by Jason Zhou, to default on service fee payments from 2016 to 2021, leading to significant financial losses [1][2] - BJL has failed to pay a total of 140 million RMB in service fees, resulting in a 105 million RMB impairment loss for New Century Healthcare in 2022 [2]

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was RMB 846.5 million, a decrease of 9.3% compared to RMB 933.1 million for the fiscal year ending December 31, 2023[14]. - Revenue from medical services for the fiscal year ending December 31, 2024, was RMB 837.3 million, down from RMB 922.8 million in the previous year, also reflecting a 9.3% decline[14]. - Total profit attributable to the company’s owners decreased to RMB 47.4 million for the year ending December 31, 2024, down from RMB 84.2 million in 2023[17]. - Gross profit from medical services was RMB 346.5 million in 2024, with a gross margin of 41.4%, down from RMB 407.8 million and 44.2% in 2023[23]. - The gross profit for 2024 was RMB 345.0 million, a decrease of 15.3% compared to the previous year, with a gross profit margin dropping from 43.6% to 40.8%[28]. - The company recorded a net profit attributable to shareholders of RMB 47.4 million in 2024, down from RMB 84.2 million in 2023[38]. Revenue Breakdown - Pediatric services accounted for 87.9% of total medical revenue, while obstetrics and gynecology services contributed 12.1% for the fiscal year ending December 31, 2024[14]. - Pediatric service revenue fell to RMB 735.8 million for the fiscal year ending December 31, 2024, a 10.1% decrease from RMB 818.8 million in the previous year[15]. - Revenue from obstetrics and gynecology services decreased by 2.4% year-on-year to RMB 101.5 million for the year ending December 31, 2024, from RMB 104.0 million for the year ending December 31, 2023[16]. - The group’s total revenue from medical services was RMB 837.3 million for the year ending December 31, 2024, compared to RMB 922.8 million in 2023, reflecting a decline[22]. Patient Visits and Services - The number of outpatient visits decreased by 17.2% to 279,396 in the fiscal year 2024, with pediatric outpatient visits dropping by 17.8% to 237,986[11]. - The company served approximately 290,000 patient visits in the fiscal year 2024, with over 70% of pediatric medical revenue coming from family doctor members and commercial insurance direct payment clients[10]. - Outpatient medical service revenue for pediatric care decreased by 16.5% to RMB 429.4 million in the fiscal year 2024[15]. - Inpatient visits decreased by 0.9% year-on-year to 1,650, while inpatient medical service revenue increased by 5.3% to RMB 49.7 million[16]. Strategic Initiatives - The company aims to expand its pediatric and obstetric services, focusing on innovative medical service offerings such as growth management packages and specialized pediatric care[11]. - The company plans to leverage national policy opportunities to continue expanding its business and enhance integrated medical services for families[12]. - The group plans to enhance brand promotion among high-income clients and expand pediatric health management in key cities by 2025[20]. - The implementation of DRG/DIP payment reform is expected to increase the demand for high-quality medical services, benefiting private healthcare institutions[20]. Financial Management and Investments - Research and development expenses decreased by 30.5% to RMB 4.1 million in 2024, down from RMB 5.9 million in 2023[31]. - Financial income increased from RMB 2.9 million in 2023 to RMB 5.4 million in 2024, primarily due to an increase in interest income[35]. - Capital expenditures for 2024 amounted to RMB 21.8 million, significantly higher than RMB 10.7 million in 2023, mainly due to the purchase of advanced imaging equipment[46]. - The company has confirmed compliance with non-competition agreements by its controlling shareholders as of December 31, 2024[107]. Corporate Governance - The company has a comprehensive financial risk management policy outlined in its consolidated financial statements[80]. - The board consists of 11 members, including 3 independent non-executive directors, ensuring compliance with listing rules[156][159]. - The company has adhered to the Corporate Governance Code, except for the separation of the roles of Chairman and CEO, which are held by the same individual[154][158]. - The audit committee held 3 meetings in 2024 to review interim and annual financial performance and significant matters related to financial reporting[167]. Shareholder Information - The proposed final dividend for the year ending December 31, 2024, is HKD 0.0221 per share, totaling HKD 10,835,000, a decrease from HKD 0.0378 per share in 2023[58]. - Shareholders holding at least 10% of the paid-up capital can request a special meeting, which must be held within two months of the request[198]. - The company has maintained sufficient public float according to listing rules as of December 31, 2024[151]. Compliance and Risk Management - The company has implemented measures to strengthen internal control procedures regarding related party transactions to avoid future lapses in compliance[126]. - The company believes its risk management and internal control systems are effective and adequate[189]. - The company has implemented an anti-corruption policy to ensure management adheres to principles of honesty, integrity, and fairness, complying with applicable laws and regulations in China[191]. Employee and Management Information - The company has 1,255 employees as of December 31, 2024, with total employee compensation expenses amounting to RMB 345.4 million for the year, slightly down from RMB 345.8 million in 2023[57]. - The company has established a risk management and internal control system focusing on customer and employee safety, quality control, and general risk management[190]. - The company encourages all directors to participate in relevant training courses to enhance their knowledge and skills[164].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of approximately RMB 846.5 million, a decrease of 9.3% compared to RMB 933.1 million for the fiscal year ending December 31, 2023[4]. - Outpatient medical service revenue was RMB 481.1 million, down 15.8% from RMB 571.2 million, with outpatient visits decreasing by 17.2% to 279,396[3]. - Inpatient medical service revenue increased by 1.0% to RMB 304.3 million, with inpatient visits remaining relatively stable at 9,088[3]. - The company recorded a profit before tax of approximately RMB 141.5 million, down from RMB 166.1 million, primarily due to a decrease in demand for pediatric services[4]. - Basic and diluted earnings per share were RMB 0.10, compared to RMB 0.17 in the previous year[8]. - The total comprehensive income for the year was RMB 94.6 million, down from RMB 131.9 million[8]. - The company reported a net profit of RMB 93,782,000 for the year ended December 31, 2024, down from RMB 132,089,000 in 2023, reflecting a decline of approximately 29.0%[22]. - The total operating profit before tax for the year ended December 31, 2024, was RMB 141,544,000, compared to RMB 166,142,000 in 2023, indicating a decrease of about 14.8%[22]. - The company's profit attributable to owners for the year ended December 31, 2024, was RMB 47.4 million, a decrease of 43.7% from RMB 84.2 million in 2023[33]. - Basic earnings per share for the year ended December 31, 2024, were RMB 0.10, down from RMB 0.17 in 2023, reflecting a decline of 41.2%[33]. Revenue Breakdown - The pediatric services segment generated revenue of RMB 735,843,000, while the obstetrics and gynecology segment contributed RMB 101,499,000, and other services brought in RMB 9,154,000 for the year ended December 31, 2024[21]. - Revenue from medical services for the year ended December 31, 2024, was RMB 837.3 million, down 9.3% from RMB 922.8 million in 2023, accounting for 98.9% of total revenue[33]. - Pediatric service revenue decreased by 10.1% to RMB 735.8 million for the year ended December 31, 2024, with outpatient visits dropping by 17.8% to 237,986[34]. - Obstetrics and gynecology service revenue decreased by 2.4% to RMB 101.5 million for the year ended December 31, 2024, despite inpatient revenue increasing by 5.3% to RMB 49.7 million[35]. - The company recorded a significant decline in pediatric internal medicine revenue, down RMB 58.1 million compared to the previous year, impacting overall performance[36]. - The contribution of commercial insurance clients to pediatric service revenue increased from 35.8% in 2023 to 39.7% in 2024, indicating a growing reliance on this segment[36]. Assets and Liabilities - Total assets decreased slightly to RMB 939.1 million from RMB 944.4 million[9]. - Total liabilities decreased to RMB 430.3 million from RMB 492.6 million, indicating improved financial stability[10]. - Total assets as of December 31, 2024, amounted to RMB 939,134,000, a slight decrease from RMB 944,393,000 in 2023[22]. - The total liabilities as of December 31, 2024, were RMB 430,258,000, compared to RMB 492,634,000 in 2023, showing a reduction of about 12.7%[22]. Expenses and Costs - The gross profit for 2024 was RMB 345.0 million, a decrease of 15.3% year-on-year, primarily due to a reduction in outpatient visits[51]. - The gross profit margin decreased from 43.6% in 2023 to 40.8% in 2024[51]. - The cost of revenue for medical services in 2024 was RMB 490.8 million, a decrease of 4.7% year-on-year, mainly due to reduced drug costs[50]. - Sales expenses for 2024 were RMB 67.4 million, a slight decrease of 1.3% compared to the previous year[52]. - Administrative expenses for 2024 were RMB 125.4 million, a decrease of 3.5% compared to RMB 129.9 million in 2023, primarily due to cost reduction measures and improved operational efficiency[53]. - R&D expenses for 2024 amounted to RMB 4.1 million, down 30.5% from RMB 5.9 million in 2023, mainly due to reduced R&D activities[54]. - Financial asset impairment losses for 2024 were RMB 5.8 million, a decrease of 34.8% from RMB 8.9 million in 2023, attributed to trade receivables and amounts due from related parties[55]. - Income tax expenses rose to RMB 47.8 million in 2024 from RMB 34.1 million in 2023, with effective tax rates of 33.8% and 20.5% respectively[58]. Strategic Focus and Future Outlook - The company continues to focus on pediatric and obstetric specialty services, along with hospital consulting and online medical services in China[11]. - The company has implemented strategies to enhance clinical deployment and service promotion in pediatric specialties, aiming to improve customer engagement and service quality[34]. - The company plans to leverage national policies aimed at improving women's and children's health to address challenges in service resource allocation and quality[37]. - The company plans to enhance brand promotion among high-end commercial insurance institutions to increase coverage of high-income target customers[40]. - The company will expand its pediatric health management services in key cities, leveraging its strengths in pediatric services[40]. - Future outlook includes strategic initiatives aimed at increasing user engagement and revenue growth[90]. Corporate Governance - The board believes that the current arrangement of having the same person serve as both Chairman and CEO is beneficial for the group's business prospects and strategic direction[78]. - The company has adopted a strict code of conduct for securities trading, ensuring compliance among all directors and employees[80]. - The audit committee, consisting of two independent non-executive directors and one non-executive director, has reviewed and recommended the approval of the annual performance for the year ending December 31, 2024[82]. - The financial figures in the preliminary announcement for the year ending December 31, 2024, have been verified against the audited financial statements by PwC[83]. - There are no significant post-reporting period events to disclose as of the announcement date[84]. - The annual performance announcement and report will be published on the Stock Exchange and the company's website[85]. - The company will continue to evaluate the separation of the roles of Chairman and CEO as appropriate in the future[78]. - The board of directors includes executive directors Jason ZHOU, Xin Hong, and Xu Han, along with non-executive directors and independent non-executive directors[90].

[Company Information](index=3&type=section&id=Company%20Information) The report lists the company's core management, board members, and their committee appointments - The report lists the company's core management, board members, and their committee appointments, including Executive Directors Chairman and CEO Mr. Jason ZHOU, Senior Vice President and COO Ms. Xin HONG, and Senior Vice President and CFO Mr. Xu HAN[21](index=21&type=chunk) - The company's primary bank is Bank of China Beijing Financial Street Branch, and its auditor is PricewaterhouseCoopers[23](index=23&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) [Business Overview](index=5&type=section&id=Business%20Overview) In H1 2024, the Group's total revenue was RMB 416.0 million, largely flat year-on-year; medical services revenue slightly increased by 0.2% to RMB 412.1 million, with pediatric services growing 0.9% to RMB 361.0 million, while obstetrics and gynecology revenue decreased by 3.9%; profit attributable to owners increased to RMB 25.2 million due to effective cost control and reduced impairment losses on financial assets 2024 H1 Key Performance Indicators | Metric | 2024 H1 | YoY Change | | :--- | :--- | :--- | | **Total Revenue** | RMB 416.0 million | Largely Flat | | **Medical Services Revenue** | RMB 412.1 million | +0.2% | | Pediatric Services Revenue | RMB 361.0 million | +0.9% | | Obstetrics & Gynecology Services Revenue | RMB 51.1 million | -3.9% | | **Profit Attributable to Owners** | RMB 25.2 million | +9.1% | 2024 H1 Operating Data by Business Segment | Business Segment | Service Type | Visits | YoY Change | Revenue (RMB) | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Pediatrics** | Outpatient | 118,392 | -8.4% | RMB 217.5 million | -2.4% | | | Inpatient | 3,622 | +5.1% | RMB 121.3 million | +9.1% | | **Obstetrics & Gynecology** | Outpatient | 22,736 | -9.9% | RMB 27.1 million | -3.9% | | | Inpatient | 807 | -7.5% | RMB 24.0 million | -4.0% | - Pediatric internal medicine outpatient and inpatient services were primary revenue growth drivers due to strong demand, with contributions also from ENT, hematology, medical aesthetics, ophthalmology, and traditional Chinese medicine specialties[25](index=25&type=chunk) - Combined revenue from members and commercial insurance approached **70% of pediatric services revenue**, indicating a strong customer base with high purchasing power[25](index=25&type=chunk) [Industry Outlook and Group Strategy](index=6&type=section&id=Industry%20Outlook%20and%20Group%20Strategy) Facing national emphasis on women's and children's health and opportunities/challenges from DRG/DIP payment reforms, the Group will deepen its development strategy by strengthening cooperation with high-end commercial insurers, securing quality medical experts, upgrading customer and member services, focusing on sub-specialty development, and expanding market-oriented consumer medical services like pediatric ophthalmology, healthcare, endocrinology, and dentistry - National policies like the "Outline for Women's/Children's Development in China" and DRG/DIP payment reforms present growth opportunities for high-end private medical institutions, attracting customers seeking quality services and commercial insurance[27](index=27&type=chunk) - Group's H2 strategic priorities: - **Market Expansion**: Strengthen brand promotion among high-end commercial insurers - **Talent Acquisition**: Increase quality medical expert resources - **Customer Relationship**: Upgrade customer management systems, improve member base and service reach - **Business Deepening**: Focus on sub-specialty construction, build customer-centric product service chains - **Service Expansion**: Expand into pediatric ophthalmology, healthcare, and dentistry consumer medical services[27](index=27&type=chunk) [Financial Review](index=7&type=section&id=Financial%20Review) In H1 2024, the Group's total revenue was RMB 416.0 million, largely flat, with medical services revenue accounting for 99.1% and a slight 0.2% increase; gross profit was RMB 168.7 million, a 0.6% decrease, with gross margin at 40.6%; effective cost control led to a 0.6% decrease in selling expenses and a 4.3% decrease in administrative expenses; profit for the period increased to RMB 48.3 million, mainly due to higher profit and increased income tax expense from deferred tax asset reversal [Segment Revenue and Operating Data](index=7&type=section&id=Segment%20Revenue%20and%20Operating%20Data) Medical services are the Group's core revenue source, accounting for 99.1% of total revenue, with pediatric services contributing 86.8% and obstetrics and gynecology 12.3%; inpatient services revenue grew 6.7% to RMB 145.0 million, driven by pediatric inpatient business, while outpatient services revenue decreased 2.6% to RMB 245.0 million Revenue Composition (For the Six Months Ended June 30) | Business Segment | 2024 Revenue (RMB Thousand) | % of Total Revenue | 2023 Revenue (RMB Thousand) | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Pediatric Services | 360,956 | 86.8% | 357,860 | 86.0% | | Obstetrics & Gynecology Services | 51,093 | 12.3% | 53,217 | 12.8% | | **Total Medical Services** | **412,049** | **99.1%** | **411,077** | **98.8%** | Group Overall Operating Data (For the Six Months Ended June 30) | Service Type | Metric | 2024 | 2023 | YoY Change | | :--- | :--- | :--- | :--- | :--- | | **Inpatient Services** | Visits | 4,429 | 4,318 | +2.6% | | | Average Spend (RMB) | 32,803 | 31,536 | +4.0% | | | Revenue (RMB Thousand) | 145,285 | 136,174 | +6.7% | | **Outpatient Services** | Visits | 141,128 | 154,487 | -8.6% | | | Average Spend (RMB) | 1,733 | 1,625 | +6.6% | | | Revenue (RMB Thousand) | 244,616 | 251,045 | -2.6% | [Costs, Expenses, and Profit](index=9&type=section&id=Costs%2C%20Expenses%2C%20and%20Profit) During the reporting period, gross profit was RMB 168.7 million, a slight 0.6% decrease, with a gross margin of 40.6%; effective cost control led to year-on-year decreases in both selling and administrative expenses, with administrative expenses down 4.3% to RMB 60.8 million; R&D expenses decreased by 29.0% due to reduced activities; profit for the period increased to RMB 48.3 million from RMB 44.1 million in the prior year Key Expense Items (For the Six Months Ended June 30) | Item | 2024 (RMB Million) | 2023 (RMB Million) | YoY Change | | :--- | :--- | :--- | :--- | | Selling Expenses | 32.8 | 33.0 | -0.6% | | Administrative Expenses | 60.8 | 63.5 | -4.3% | | R&D Expenses | 2.2 | 3.1 | -29.0% | | Income Tax Expense | 23.9 | 19.6 | +21.9% | - The decrease in administrative expenses was primarily due to the company's continuous measures to reduce expenditures and improve operational efficiency[37](index=37&type=chunk) - Income tax expense increased by **21.9%** year-on-year, mainly due to increased Group profit and the reversal of deferred tax assets from pre-tax profits realized by related companies[42](index=42&type=chunk) [Financial Position](index=11&type=section&id=Financial%20Position) As of June 30, 2024, the company's financial position was robust; inventory decreased by 11.7% due to enhanced management and reduced usage; trade receivables remained stable; trade payables decreased by 18.3% due to reduced purchases; cash and cash equivalents were ample, increasing 9.1% to RMB 332.0 million Key Balance Sheet Item Changes | Item | June 30, 2024 (RMB Million) | December 31, 2023 (RMB Million) | Change | | :--- | :--- | :--- | :--- | | Inventories | 19.7 | 22.3 | -11.7% | | Trade Receivables | 51.6 | 51.3 | +0.6% | | Trade Payables | 33.4 | 40.9 | -18.3% | | Cash and Cash Equivalents | 332.0 | 304.3 | +9.1% | [Liquidity, Capital Resources, and Risks](index=11&type=section&id=Liquidity%2C%20Capital%20Resources%2C%20and%20Risks) As of June 30, 2024, the Group had no bank borrowings, rendering the debt-to-asset ratio inapplicable, indicating a healthy financial position; capital expenditure significantly increased by 224.0% to RMB 8.1 million, primarily for property, plant, and equipment to support business development; the company faces foreign exchange fluctuation risk between RMB, USD, and HKD but does not use derivatives for hedging; no significant investments, acquisitions, or disposals occurred during the period - As of June 30, 2024, the company had no borrowings, thus the debt-to-asset ratio is not applicable[45](index=45&type=chunk)[48](index=48&type=chunk) - Capital expenditure was **RMB 8.1 million**, a **224.0%** year-on-year increase, primarily for the purchase of property, plant, and equipment to support business development[45](index=45&type=chunk) - The Group primarily operates in China with most transactions settled in RMB, but some cash and dividends payable are denominated in USD or HKD, posing certain foreign exchange fluctuation risks[45](index=45&type=chunk) [Employees and Dividends](index=13&type=section&id=Employees%20and%20Dividends) As of June 30, 2024, the Group had 1,258 employees, with total staff costs of RMB 172.2 million for the first half; the company has a restricted share award scheme and an employee share scheme to incentivize core employees; the Board decided not to declare an interim dividend for the six months ended June 30, 2024 - As of June 30, 2024, the Group had **1,258 employees**, with total staff costs of **RMB 172.2 million** for the first half of the year[49](index=49&type=chunk) - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[49](index=49&type=chunk) [Other Information](index=14&type=section&id=Other%20Information) [Directors, Chief Executives, and Major Shareholders' Interests](index=14&type=section&id=Directors%2C%20Chief%20Executives%2C%20and%20Major%20Shareholders%27%20Interests) The report discloses the shareholdings of directors, chief executives, and major shareholders; Chairman Mr. Jason ZHOU holds approximately 44.40% interest through controlled corporations and acting-in-concert agreements; other major shareholders include Victor Gains Limited (11.8%), Anyi Hekang (Tianjin) Investment Partnership (6.4%), and China Life Reinsurance Company Ltd. (6.4%) Directors' and Chief Executives' Shareholding (As of June 30, 2024) | Name | Capacity | Number of Shares | Percentage | | :--- | :--- | :--- | :--- | | Mr. Jason ZHOU | Interest in controlled corporation; jointly held | 217,556,394 | 44.40% | | Ms. Xin HONG | Beneficial owner | 180,000 | 0.04% | | Mr. Xu HAN | Beneficial owner | 180,000 | 0.04% | Major Shareholders' Shareholding (As of June 30, 2024) | Shareholder Name | Capacity | Number of Shares | Percentage | | :--- | :--- | :--- | :--- | | JoeCare | Beneficial owner | 150,817,051 | 30.8% | | Victor Gains Limited | Beneficial owner | 57,740,181 | 11.8% | | Anyi Hekang (Tianjin) Investment Partnership | Beneficial owner | 31,562,713 | 6.4% | | China Life Reinsurance Company Ltd. | Beneficial owner | 31,444,000 | 6.4% | [Share Award Schemes](index=16&type=section&id=Share%20Award%20Schemes) The company has a restricted share award scheme and an employee share scheme; as of June 30, 2024, 4,767,000 shares were available for grant under the restricted share award scheme, with no new grants or vesting during the period; under the employee share scheme, the trustee purchased 2,073,500 shares from the market but has not yet granted any to participants - As of June 30, 2024, **4,767,000 shares** were available for grant under the restricted share award scheme, with no changes during the reporting period[56](index=56&type=chunk) - Under the employee share scheme, the trustee has purchased and holds **2,073,500 shares**, but no awards have been granted yet[58](index=58&type=chunk) [Use of Proceeds from Initial Public Offering](index=18&type=section&id=Use%20of%20Proceeds%20from%20Initial%20Public%20Offering) The company disclosed the progress of using IPO proceeds; as of June 30, 2024, HKD 54.0 million remained unutilized, primarily for establishing, renovating, and acquiring new hospitals and clinics, with the remaining amount expected to be fully utilized by the end of 2024 IPO Proceeds Utilization Progress (As of June 30, 2024) | Item | Unutilized as of End of 2023 (HKD Million) | Utilized in H1 2024 (HKD Million) | Unutilized as of Mid-2024 (HKD Million) | Expected Utilization Time | | :--- | :--- | :--- | :--- | :--- | | Establishment, Renovation, and Acquisition of New Hospitals and Clinics | 66.5 | 12.5 | 54.0 | By end of 2024 | [Corporate Governance](index=19&type=section&id=Corporate%20Governance) The company is committed to maintaining high corporate governance standards and has applied relevant Listing Rules codes; during the reporting period, all applicable code provisions were complied with, except for the non-separation of Chairman and CEO roles, both held by Mr. Jason ZHOU; the Board believes this arrangement benefits the Group's business prospects and decision-making efficiency; the Audit Committee has reviewed this interim results report - The company complied with the Corporate Governance Code, with one deviation: the roles of Chairman and Chief Executive Officer are not separated, both held by Mr. Jason ZHOU[62](index=62&type=chunk) - The Board believes that combining the roles of Chairman and CEO facilitates consistent leadership and promotes more effective and efficient strategic planning and decision-making[62](index=62&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2024, and this interim report[65](index=65&type=chunk) [Interim Financial Information](index=21&type=section&id=Interim%20Financial%20Information) [Review Report on Interim Financial Information](index=21&type=section&id=Review%20Report%20on%20Interim%20Financial%20Information) PricewaterhouseCoopers, the auditor, has reviewed the Group's interim financial information in accordance with Hong Kong Standard on Review Engagements 2410; the review concluded that nothing has come to their attention that causes them to believe the interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" - PricewaterhouseCoopers, the auditor, has reviewed this interim financial information[67](index=67&type=chunk)[69](index=69&type=chunk) - The review concluded that nothing indicates the interim financial information was not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[69](index=69&type=chunk) [Interim Condensed Consolidated Financial Statements](index=22&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section includes the unaudited interim condensed consolidated statement of financial position, statement of comprehensive income, statement of changes in equity, and statement of cash flows for the six months ended June 30, 2024, detailing the Group's financial position, operating results, and cash flow Summary Statement of Financial Position (June 30, 2024) | Item | Amount (RMB Thousand) | | :--- | :--- | | Total Assets | 933,686 | | Total Liabilities | 450,226 | | **Total Equity** | **483,460** | Summary Statement of Comprehensive Income (For the Six Months Ended June 30, 2024) | Item | Amount (RMB Thousand) | | :--- | :--- | | Revenue | 415,956 | | Operating Profit | 72,363 | | **Profit for the Interim Period** | **48,307** | | Profit Attributable to Owners of the Company | 25,193 | | Basic and Diluted Earnings Per Share (RMB) | 0.05 | Summary Statement of Cash Flows (For the Six Months Ended June 30, 2024) | Item | Amount (RMB Thousand) | | :--- | :--- | | Net Cash Generated from Operating Activities | 64,776 | | Net Cash Used in Investing Activities | (8,130) | | Net Cash Used in Financing Activities | (29,169) | | **Net Increase in Cash and Cash Equivalents** | **27,477** | [Notes to the Interim Condensed Consolidated Financial Information](index=27&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) Notes to the financial statements provide detailed explanations and supplementary information, with segment data indicating pediatric services as the primary profit source; the intangible assets note discloses a goodwill impairment assessment for the Beijing obstetrics and gynecology segment, concluding no impairment is needed; related party transactions detail dealings and balances with companies controlled by or significantly influenced by controlling and major shareholders, including significant impairment provisions for certain related party receivables [Note 4: Segment Information](index=29&type=section&id=Note%204%3A%20Segment%20Information) The Group is segmented into pediatric services, obstetrics and gynecology services, and other operating segments; in H1 2024, the pediatric segment achieved a segment result (pre-tax profit) of RMB 95.1 million, being the Group's primary profit contributor, while the obstetrics and gynecology segment recorded a loss of RMB 15.7 million Segment Results (For the Six Months Ended June 30, 2024) | Segment | Total Revenue (RMB Thousand) | Segment Result (RMB Thousand) | | :--- | :--- | :--- | | Pediatrics | 360,956 | 95,127 | | Obstetrics & Gynecology | 51,093 | (15,698) | | Others | 19,275 | (6,161) | [Note 7: Intangible Assets](index=33&type=section&id=Note%207%3A%20Intangible%20Assets) As of June 30, 2024, the net book value of intangible assets was RMB 240.0 million, primarily comprising medical licenses and goodwill; during the reporting period, due to the underperformance of the Beijing obstetrics and gynecology segment, the company conducted a goodwill impairment assessment; the assessment concluded that the recoverable amount of this cash-generating unit exceeded its carrying amount, thus no impairment loss was recognized - A goodwill impairment assessment was conducted for the Beijing obstetrics and gynecology cash-generating unit, concluding that the carrying amount did not exceed the recoverable amount, thus no impairment loss was recognized[93](index=93&type=chunk) [Notes 9 and 15: Related Party Balances and Transactions](index=36&type=section&id=Notes%209%20and%2015%3A%20Related%20Party%20Balances%20and%20Transactions) The report discloses transactions and balances with several related parties; specifically, impairment provisions of RMB 114.0 million and RMB 27.4 million were made for receivables from related parties Jiahua Likang and Bairui Kangchen, respectively, due to long-term arrears and credit impairment; major related party transactions include purchasing testing services from Beijing Children's Hospital affiliated with Capital Medical University and leasing premises from Chengdu Women's and Children's Central Hospital - As of June 30, 2024, total receivables from related parties amounted to **RMB 170.0 million**, with impairment provisions of **RMB 143.0 million** recognized[96](index=96&type=chunk) - Due to long-term arrears and stalled collection from Jiahua Likang, an impairment provision of **RMB 114.0 million** was made for its receivables; an impairment provision of **RMB 27.4 million** was made for Bairui Kangchen's receivables due to credit impairment[97](index=97&type=chunk)