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)

Revenue and Profitability - Revenue for the six months ended June 30, 2024, was RMB 415.96 million, nearly flat compared to RMB 416.13 million in the same period last year[2] - Operating profit increased to RMB 72.36 million, up from RMB 64.55 million year-on-year, primarily due to a decrease in financial asset impairment losses[2] - The total comprehensive income for the period was RMB 48.31 million, compared to RMB 43.82 million in the same period last year[3] - Basic and diluted earnings per share remained at RMB 0.05, consistent with the previous year[3] - The profit before tax for the six months ended June 30, 2024, was RMB 72,169 thousand, compared to RMB 63,757 thousand for the same period in 2023, representing a year-on-year increase of approximately 13.9%[13] - The net profit for the six months ended June 30, 2024, was RMB 48,307 thousand, compared to RMB 44,126 thousand for the same period in 2023, indicating a growth of about 9.9%[12] Revenue Breakdown - Outpatient medical service revenue was RMB 244.62 million, a decrease of 2.6% from RMB 251.05 million in the previous year[1] - Inpatient medical service revenue rose to RMB 145.29 million, reflecting a 6.7% increase from RMB 136.17 million year-on-year[1] - The company operates in three segments: Pediatric Services, Obstetrics and Gynecology Services, and Other Services, with total revenue contributions of RMB 360,956 thousand, RMB 51,093 thousand, and RMB 19,275 thousand respectively for the six months ended June 30, 2024[11] - Medical service revenue was RMB 412.1 million, with a year-on-year growth of 0.2%, while pediatric service revenue reached RMB 361.0 million, increasing by 0.9%[22] - Pediatric services generated revenue of RMB 361.0 million, reflecting a year-on-year growth of 0.9%, while obstetric services revenue decreased by 3.9% to RMB 51.1 million[30] Operational Metrics - The number of outpatient visits decreased by 8.6% to 141,128 from 154,487 in the previous year[1] - The number of outpatient visits for pediatric services decreased by 8.4% to 118,392, while inpatient visits increased by 5.1% to 3,622[22] - Inpatient admissions for pediatric services increased by 5.1% to 3,622, while outpatient visits decreased by 8.4% to 118,392[30] Financial Position - Total assets as of June 30, 2024, were RMB 933.69 million, a slight decrease from RMB 944.39 million at the end of 2023[4] - Total equity increased to RMB 483.46 million from RMB 451.76 million at the end of 2023[4] - Non-current liabilities decreased to RMB 143.97 million from RMB 156.66 million at the end of 2023[6] - The total liabilities as of June 30, 2024, were RMB 450,226 thousand, a decrease from RMB 492,634 thousand as of December 31, 2023[12] - Cash and cash equivalents increased by 9.1% to RMB 332.0 million as of June 30, 2024[42] Expenses and Investments - Total operating expenses, including sales and administrative expenses, were RMB 93.6 million, with administrative expenses decreasing by 4.3% to RMB 60.8 million[34] - Research and development expenses decreased by 29.0% to RMB 2.2 million due to reduced R&D activities in the first half of 2024[35] - Capital expenditures for the six months ended June 30, 2024, amounted to RMB 8.1 million, a 224.0% increase compared to RMB 2.5 million for the same period last year, primarily due to the purchase of properties, plants, and equipment for business development[45] Governance and Compliance - The audit committee, consisting of two independent non-executive directors and one non-executive director, reviewed the unaudited interim results for the six months ended June 30, 2024, and confirmed compliance with relevant accounting standards[58] - The company operates under the Hong Kong Financial Reporting Standards and adheres to the Listing Rules of the Hong Kong Stock Exchange[62] - The board of directors includes both executive and non-executive members, ensuring a diverse governance structure[63] Strategic Initiatives - The company aims to enhance its brand promotion in high-end commercial insurance institutions to increase coverage among high-income target customers[25] - The company plans to expand its market presence in pediatric ophthalmology, pediatric healthcare, endocrinology, and dental services[25] - The company is focusing on the construction of sub-specialties while establishing a product and service chain around customer medical and health needs[25] - The company has strengthened its "New Century Family Doctor" membership service system to enhance service experience and exclusive benefits[22] Dividends and Shareholder Returns - The company declared a final dividend of HKD 0.0378 per share, totaling HKD 18,523,000 (approximately RMB 16,844,000)[21] - The company did not recommend the distribution of an interim dividend for the six months ended June 30, 2024[53] Other Information - The company has not adopted any new accounting standards that would have a significant impact on its financial statements in the current or future reporting periods[10] - There were no significant contingent liabilities or guarantees affecting the company's financial position as of June 30, 2024[47] - The company has not pledged any assets as of June 30, 2024[48] - The company has not engaged in the purchase, sale, or redemption of any listed securities during the six months ended June 30, 2024[57] - There were no significant events affecting the company from June 30, 2024, to the date of this announcement[59] - Beijing New Century Children's Hospital is a non-wholly owned subsidiary established in December 2002[61] - The company has not used any derivative financial instruments to hedge foreign exchange risks but will continue to monitor these risks closely[46] - As of June 30, 2024, the company had no borrowings, resulting in an asset-to-liability ratio that is not applicable[51] - Employee compensation expenses for the six months ended June 30, 2024, totaled RMB 172.2 million, compared to RMB 166.3 million for the same period last year, reflecting the company's commitment to performance-based remuneration[52]

Financial Performance - For the year ended December 31, 2023, the company's revenue was RMB 933.1 million, representing a year-on-year increase of 46.6% compared to RMB 636.5 million for the year ended December 31, 2022[14]. - The group recorded a profit of RMB 132.1 million for the year ending December 31, 2023, compared to a loss of RMB 291.6 million in 2022, primarily due to a recovery in business performance and a significant increase in pediatric services[16]. - The gross profit margin for medical services improved to 44.2% in 2023 from 32.3% in 2022, with gross profit rising to RMB 407.8 million from RMB 203.6 million[24]. - The profit attributable to the owners of the company for the year ended December 31, 2023, was RMB 84.2 million, compared to a loss of RMB 297.7 million for the year ended December 31, 2022[44]. - The company’s financial performance for the year ending December 31, 2023, is detailed in the comprehensive income statement section of the annual report[111]. Revenue Sources - Revenue from medical services for the year ended December 31, 2023, was RMB 922.8 million, up 46.5% from RMB 629.8 million in the previous year, accounting for 98.9% of total revenue[14]. - Pediatric services contributed 87.8% and obstetric services contributed 11.1% to the total revenue for the year ended December 31, 2023[14]. - Revenue from pediatric services accounted for 87.8% of total medical service revenue in 2023, up from 83.7% in 2022, while obstetric services contributed 11.1%, down from 15.3%[26]. - Pediatric internal medicine revenue grew by 102.2% year-on-year, becoming a major driver of the group's performance growth[18]. Operational Metrics - The number of outpatient visits increased by 40.7% to 337,351 in 2023, with pediatric outpatient visits rising by 47.6% to 289,375[11]. - The number of inpatient visits grew by 27.1% to 9,097, with pediatric inpatient visits increasing by 38.0% to 7,432[11]. - The company served nearly 480,000 families and approximately 350,000 patient visits in 2023[9]. - The total revenue from medical services reached RMB 922.8 million in 2023, representing a year-on-year growth of 46.5%, accounting for 98.9% of the group's total revenue[28]. Cost and Expenses - The cost of revenue for medical services was RMB 514.9 million, reflecting a year-on-year increase of 20.8%, consistent with the growth in revenue from outpatient and inpatient services[29]. - Research and development expenses decreased to RMB 5.9 million in 2023 from RMB 7.7 million in 2022, primarily due to reduced R&D activities[35]. - Administrative expenses decreased by 1.4% to RMB 129.9 million in 2023, attributed to the closure of loss-making clinics and optimization of personnel structure[34]. - Sales expenses rose by 9.6% to RMB 68.3 million in 2023, primarily due to increased personnel costs and miscellaneous expenses associated with business growth[32]. Strategic Initiatives - The company plans to continue expanding its pediatric and obstetric services, focusing on high-end services and improving critical care levels[8]. - The group plans to enhance its strategic focus on sub-specialty development in pediatrics and obstetrics, aiming to expand services in pediatric ophthalmology, child healthcare, and endocrinology[23]. - The company aims to leverage national policy opportunities to expand its business and contribute to the health strategy of China[12]. - The company is developing innovative medical services such as children's growth and development management packages, which have received positive customer feedback[11]. Management and Governance - Jason Zhou has been the CEO and Chairman since August 2015, leading the company in the private healthcare sector for over 21 years[71]. - The company has a strong management team with extensive experience in hospital operations and financial management, including CFO Xu Han who oversees financial activities and internal controls[75]. - The board consists of eleven members, including Jason Zhou as Chairman and CEO, and Xin Hong as COO[194]. - 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[192]. Shareholder Information - As of December 31, 2023, the company's share premium balance is RMB 2,606.5 million, available for distribution to shareholders[113]. - The board has proposed a final dividend of HKD 0.0378 per share for the year ended December 31, 2023, totaling HKD 18,523,000, compared to no dividend for the previous year[183]. - The company has maintained sufficient public float as per listing rules as of December 31, 2023[189]. Compliance and Risk Management - The company has complied with all relevant environmental laws and regulations in 2023, ensuring proper handling of medical waste and emissions[108]. - The company’s financial risk management objectives and policies are detailed in the consolidated financial statements[98]. - The company’s business operations are subject to compliance with laws and regulations in mainland China, the Cayman Islands, and Hong Kong[109]. Future Outlook - The company has outlined a future outlook with a projected revenue growth of 20% for the upcoming fiscal year[90]. - The company is expanding its market presence by entering three new regions, aiming to increase its market share by 10%[90]. - A strategic acquisition of a local healthcare provider is in progress, which is anticipated to add $50 million in annual revenue[90].

Revenue and Profitability - For the year ended December 31, 2023, the total revenue generated from medical services accounted for 98.9% of the company's total revenue, with pediatric services contributing 87.8% and obstetric services contributing 11.1%[9]. - Total revenue for the year ended December 31, 2023, was RMB 922.8 million, up from RMB 629.8 million in 2022, representing a year-on-year increase of approximately 46.5%[16]. - The company recorded a profit of RMB 132.1 million for the year ended December 31, 2023, a significant recovery from a loss of RMB 291.6 million in the previous year, primarily due to improved business performance in pediatric services[11]. - The group reported a net profit of RMB 132,089,000 for the year, compared to a net loss of RMB 291,573,000 in the previous year[38]. - The company reported a profit attributable to shareholders of RMB 84.2 million in 2023, compared to a loss of RMB 297.7 million in 2022, resulting in a basic earnings per share of RMB 0.17[132]. - The company achieved a profit before tax of approximately RMB 166.1 million for the year ended December 31, 2023, compared to a loss before tax of approximately RMB 289.9 million for the previous year, primarily due to a gross profit increase of RMB 205.0 million or 101.4%[91]. Revenue Breakdown - Revenue from obstetric services increased by 6.8% year-on-year to RMB 104.0 million, despite a 5.9% decrease in inpatient visits to 1,665 and a 7.6% decrease in inpatient medical service revenue to RMB 47.2 million[10]. - In pediatric services, inpatient visits increased to 9,097, with an average spending per inpatient of RMB 33,109, compared to 7,156 visits and RMB 29,434 in the previous year[37]. - Outpatient visits rose to 337,351, with an average spending per outpatient of RMB 1,693, up from 239,767 visits and RMB 1,556 in 2022[37]. - Outpatient medical service revenue reached RMB 571.2 million, a growth of 53.1% from RMB 373.2 million in the previous year, with outpatient visits increasing by 40.7% to 337,351[92]. - Inpatient medical service revenue was RMB 301.2 million, up 43.0% from RMB 210.6 million, with inpatient visits increasing by 27.1% to 9,097[92]. - Pediatric services revenue increased by 53.8% from RMB 532.4 million in 2022 to RMB 818.8 million in 2023, with inpatient visits rising by 38.0% to 7,432[116]. Financial Position - The total assets as of December 31, 2023, amounted to RMB 944,393,000, with total liabilities of RMB 492,634,000[38]. - Total liabilities decreased to RMB 492.6 million as of December 31, 2023, from RMB 540.0 million in the previous year[88]. - Total equity increased to RMB 451.8 million as of December 31, 2023, compared to RMB 361.4 million in the previous year[96]. - Non-current assets totaled RMB 500.9 million as of December 31, 2023, down from RMB 557.7 million in the previous year[96]. - The company maintained cash and cash equivalents of RMB 304,300,000 as of December 31, 2023, compared to RMB 226,100,000 in the previous year[51]. Expenses and Costs - The gross profit for the year ended December 31, 2023, was RMB 407.8 million, with a gross margin of 44.2%, compared to a gross profit of RMB 203.6 million and a gross margin of 32.3% in 2022[16]. - The cost of revenue for medical services was RMB 514.9 million in 2023, representing a year-on-year increase of 20.8%[124]. - The sales expenses for 2023 were RMB 68.3 million, up 9.6% year-on-year, primarily due to increased personnel costs and miscellaneous expenses[126]. - The administrative expenses decreased by 1.4% year-on-year to RMB 129.9 million, attributed to the closure of loss-making clinics and optimization of personnel structure[127]. - Research and development expenses for the year were RMB 5,930,000, a decrease from RMB 7,695,000 in 2022[38]. Corporate Governance and Compliance - The company has complied with all applicable corporate governance code provisions for the year ended December 31, 2023, except for the separation of the roles of Chairman and CEO[61]. - The audit committee consists of two independent non-executive directors and one non-executive director, ensuring oversight of financial reporting[64]. - The company has established strict guidelines for securities trading by directors and employees, confirming compliance for the year ended December 31, 2023[62]. - The company is committed to maintaining high corporate governance standards as per the applicable principles of the corporate governance code[78]. Future Plans and Strategy - The company plans to continue optimizing its strategy and increasing the reserve of quality medical expert resources in 2024[12]. - The focus will be on sub-specialty development and establishing a product and service chain around customer medical and health needs, leveraging multi-disciplinary collaboration in pediatric and obstetric services[13]. - The company plans to expand its market presence in pediatric ophthalmology, pediatric healthcare, endocrinology, and dental services[140]. Shareholder Information - The company proposed a final dividend of HKD 0.0378 per share for the year ended December 31, 2023, totaling HKD 18,523,000, compared to no dividend for the previous year[58]. - The final dividend is subject to approval at the annual general meeting and is expected to be paid on or before July 2, 2024, if approved[75]. - The annual general meeting is scheduled for May 22, 2024, with the share register closing from May 17 to May 22, 2024, for voting eligibility[59]. Miscellaneous - The company has no significant investments, acquisitions, or disposals during the year ended December 31, 2023[160]. - The company has no significant events to disclose after the reporting period as of the annual performance announcement date[191]. - The company is a non-wholly owned subsidiary established in China, specifically Beijing New Century Children's Hospital, registered in December 2002[194]. - The company was incorporated in the Cayman Islands on July 31, 2015, and its shares are listed on the main board of the Hong Kong Stock Exchange[194].

Shareholding Structure - As of June 30, 2023, Jason ZHOU holds 217,556,394 shares, representing approximately 44.40% of the company's equity[5]. - JoeCare owns 150,817,051 shares, accounting for 30.8% of the company's equity[9]. - Victor Gains Limited holds 57,740,181 shares, which is 11.8% of the company's equity[9]. - The company has a total of 450,000 restricted shares granted to key personnel, with 180,000 shares vested under certain conditions[6]. - As of June 30, 2023, the company has purchased 2,073,500 shares under the Employee Share Scheme, held in trust for selected participants[17]. - The total number of shares available for grant under the Employee Share Scheme is 24,501,250, equivalent to 5% of the issued share capital as approved on August 28, 2020[17]. Financial Performance - The net profit attributable to the owners of the company for the six months ended June 30, 2023, was RMB 231 million, a significant recovery from a net loss of RMB 2,336 million in the same period of 2022[46]. - Revenue from medical services for the six months ended June 30, 2023, was RMB 4,111 million, reflecting a year-on-year growth of 48.5% and accounting for 98.8% of total revenue[57]. - The gross profit for the six months ended June 30, 2023, was RMB 1,698 million, an increase of 155.0% compared to the previous year, with a gross margin rising from 23.8% to 40.8%[59]. - The company reported a profit of RMB 44.1 million for the first half of 2023, a significant turnaround from a loss of RMB 234.7 million in the same period last year[86]. - Revenue for the six months ended June 30, 2023, was RMB 416,133 thousand, a significant increase from RMB 280,104 thousand in the same period of 2022, representing a growth of approximately 48.6%[132]. - Operating profit for the same period was RMB 64,551 thousand, compared to an operating loss of RMB 232,280 thousand in the prior year, indicating a turnaround in performance[132]. Revenue Breakdown - The obstetrics and gynecology business achieved revenue of RMB 532 million in the first half of 2023, representing a year-on-year growth of 14.9%[45]. - Outpatient service revenue reached RMB 282 million, with a year-on-year increase of 23.7%, and outpatient visits totaled 25,248, up 11.0%[45]. - Pediatric services revenue reached RMB 357.86 million, representing an 85.8% increase compared to RMB 230.56 million in the same period last year[69]. - Pediatric service revenue reached RMB 357.9 million, up 55.2% year-on-year, accounting for 87.1% of total medical service revenue[117]. - Inpatient services saw an increase in patient visits to 4,318 from 3,151, with average spending per inpatient rising to RMB 31,536 from RMB 29,516[77]. - Outpatient services recorded 154,487 visits, up from 111,164, with average spending per outpatient increasing to RMB 1,625 from RMB 1,495[77]. Cost and Expenses - The cost of medical services increased by 14.7% year-on-year to RMB 240.7 million[79]. - Administrative expenses decreased by 1.6% to RMB 635 million, attributed to a reduction in the number of operational clinics and optimization of personnel structure[101]. - Research and development expenses decreased to RMB 3.1 million from RMB 4.2 million year-on-year due to reduced R&D activities[83]. - Capital expenditures for the first half of 2023 amounted to RMB 2.5 million, primarily for property, plant, and equipment[92]. Cash Flow and Financial Position - Cash and cash equivalents as of June 30, 2023, were RMB 246.0 million, up from RMB 226.1 million at the end of 2022[89]. - Operating cash flow for the six months ended June 30, 2023, was RMB 62,911 thousand, compared to RMB 10,804 thousand in the same period of 2022, representing a significant increase[181]. - Net cash generated from operating activities was RMB 43,275 thousand, a turnaround from a net cash outflow of RMB (4,982) thousand in the previous year[181]. - Cash and cash equivalents at the end of the period increased to RMB 246,020 thousand from RMB 178,868 thousand in the prior year, reflecting a net increase of RMB 17,489 thousand[181]. Risk Management and Compliance - The company has implemented measures to enhance its risk management and internal control systems following compliance issues, indicating a strategic focus on governance[138]. - The company faces various financial risks, including market risk, credit risk, and liquidity risk, which are continuously monitored[165]. - The expected credit losses for trade receivables are assessed based on historical loss rates and external credit ratings, indicating a proactive approach to credit risk management[169]. - The company has not adopted any new accounting standards that would significantly impact its financial reporting as of June 30, 2023[165]. Corporate Governance - The board is committed to maintaining high corporate governance standards and has applied the principles of the corporate governance code[25]. - The company has confirmed compliance with the standards set forth in the Securities Trading Code by all directors as of June 30, 2023[32]. - The company has adopted a standard code for securities trading by directors and has established strict guidelines for employees[29]. Employee and Shareholder Information - The company had 1,252 employees as of June 30, 2023, a decrease from 1,303 employees a year earlier[136]. - The company declared dividends amounting to RMB 8,086 thousand during the reporting period, which is a reduction compared to previous distributions[156].

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份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 1518 截至二零二三年六月三十日止六個月 中期業績公告 二零二三年中期業績摘要 以下載列我們截至二零二三年六月三十日止六個月的主要業績摘要： 1. 我們於截至二零二三年六月三十日止六個月錄得收益人民幣416.1百萬元， 與去年同期相比增加48.6%。 2. 期內除所得稅前溢利為人民幣63.8百萬元，而去年同期為除稅前虧損人 民幣233.6百萬元，主要原因是：(1)毛利增加人民幣103.2百萬元；(2)金融 資產減值虧損淨額減少人民幣109.1百萬元；及(3)非流動資產減值虧損 減少人民幣82.8百萬元。 ...