Financial Performance - The company reported a significant increase in revenue, achieving a total of $500 million for the fiscal year, representing a 20% growth compared to the previous year[1]. - Revenue for the year ended December 31, 2024, was RMB 2,924.5 million, a decrease of 2.3% compared to RMB 2,992.7 million for the year ended December 31, 2023[21]. - Gross profit for the year ended December 31, 2024, was RMB 1,167.8 million, down 6.5% from RMB 1,249.5 million for the year ended December 31, 2023[21]. - Profit attributable to owners of the company for the year ended December 31, 2024, was RMB 297.3 million, compared to RMB 363.8 million for the year ended December 31, 2023[21]. - Adjusted EBITDA for the year ended December 31, 2024, was RMB 1,054.1 million, a decline of 1.7% from RMB 1,072.4 million for the year ended December 31, 2023[21]. - The company's net profit for 2024 was RMB 354.7 million, down from RMB 402.0 million in 2023, primarily due to a decline in health check business revenue[69]. - The revenue from the comprehensive hospital business in 2024 was RMB 604.4 million, down 3.7% from RMB 627.7 million in 2023[57]. - The revenue from the health check business in 2024 was RMB 2,358.8 million, a decline of 1.1% from RMB 2,386.0 million in 2023[58]. - The gross profit decreased from RMB 1,249.5 million in 2023 to RMB 1,167.8 million in 2024, with a gross margin of 39.9%[61]. User Engagement and Market Expansion - User data showed a 15% increase in active users, reaching 1.2 million by the end of the reporting period[1]. - The company is expanding its market presence, with plans to open 10 new clinics across China in the next year[1]. - The company plans to implement a new digital marketing strategy aimed at increasing brand awareness and user engagement by 40%[1]. - The company aims to deepen strategic transformation and integrate advanced technologies such as AI and big data into its healthcare services[24]. - The health check sector has launched multi-level health management products focusing on early cancer screening and chronic disease management, supported by a digital platform covering 83 health check institutions across 29 cities in China, with 75 already operational[27]. Strategic Initiatives and Innovations - New product launches included a state-of-the-art health monitoring device, expected to contribute an additional $50 million in revenue[1]. - A strategic acquisition of a local healthcare provider was completed, enhancing the company's service offerings and expected to generate $30 million in annual revenue[1]. - Research and development investments increased by 30%, focusing on innovative healthcare technologies[1]. - The company has developed the Rici Medark platform, integrating AI technology to assist doctors in lesion identification and condition grading, aiming for diagnostic quality control in report generation in the future[27]. - The company is committed to strategic goals despite external challenges, emphasizing innovation-driven service upgrades and talent development to enhance its position as a leader in high-quality medical services[28]. Operational Efficiency and Customer Satisfaction - The company reported a net profit margin of 12%, up from 10% in the previous year, indicating improved operational efficiency[1]. - Customer satisfaction ratings improved to 90%, reflecting the company's commitment to quality service[1]. - The health check-up segment achieved a customer satisfaction rate of 98.80%, an increase of 1.1 percentage points year-on-year[53]. Financial Position and Liabilities - The total assets as of December 31, 2024, amounted to RMB 4,858.5 million, an increase from RMB 4,637.8 million as of December 31, 2023[22]. - The total liabilities as of December 31, 2024, were RMB 3,483.4 million, down from RMB 3,523.7 million as of December 31, 2023[22]. - As of December 31, 2024, the company's current liabilities exceeded its current assets by RMB 323.3 million, a decrease from RMB 726.6 million as of December 31, 2023, primarily due to improved collection efficiency of operating receivables[76]. - The company's cash and cash equivalents amounted to RMB 1,109.8 million as of December 31, 2024, up from RMB 811.2 million as of December 31, 2023[77]. - Total bank and other borrowings were RMB 797.0 million as of December 31, 2024, down from RMB 866.6 million as of December 31, 2023[80]. Governance and Board Composition - The board consists of 4 executive directors (57.1%) and 3 independent non-executive directors (42.9%) as of December 31, 2024[99]. - The gender composition of the board is 4 males (57.1%) and 3 females (42.9%)[99]. - The company has a policy ensuring that the gender ratio in the board, senior management, and employees is at least 10%[99]. - All directors participated in continuous professional development activities to enhance their knowledge and skills[102]. - The company has adopted a standard code of conduct for securities trading, with all directors confirming compliance for the year ending December 31, 2024[110]. Risk Management and Compliance - The company has established a comprehensive risk management and internal control framework to actively manage risks[142]. - The main risks identified include business expansion risks, competition risks, and investment risks, with specific measures in place to mitigate these risks[143][145]. - The company emphasizes the importance of anti-fraud measures and has implemented a whistleblower system to encourage reporting of fraudulent activities[159]. - The internal control system is based on COSO principles and has undergone independent audits to ensure effectiveness[160]. - The company is enhancing its compliance system by regularly reviewing legal regulations and industry standards[155]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report covers the performance and measures of the company and its 108 subsidiaries for the period from January 1, 2024, to December 31, 2024[173]. - The board of directors commits to strict compliance with listing rules and ESG reporting guidelines, ensuring the accuracy and completeness of the report's content[176]. - The company has published its ESG report for nine consecutive years since 2016, enhancing its internal sustainability system and optimizing ESG management processes[178]. - The company has not faced any fines or lawsuits due to environmental violations during the reporting period, demonstrating compliance with environmental laws[187]. - In 2024, the company aims to continue its efforts in environmental protection and pollution prevention, revising management methods to reduce resource consumption and enhance recycling rates[187].

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 2,924.5 million, a decrease of 2.3% compared to RMB 2,992.7 million for the year ended December 31, 2023[3] - Gross profit for the year ended December 31, 2024, was RMB 1,167.8 million, down 6.5% from RMB 1,249.5 million for the year ended December 31, 2023[3] - Profit attributable to owners of the company for the year ended December 31, 2024, was RMB 297.3 million, compared to RMB 363.8 million for the year ended December 31, 2023[3] - Adjusted EBITDA for the year ended December 31, 2024, was RMB 1,054.1 million, a decline of 1.7% from RMB 1,072.4 million for the year ended December 31, 2023[3] - Operating profit for the year ended December 31, 2024, was RMB 607.5 million, down from RMB 656.9 million for the year ended December 31, 2023[4] - Total comprehensive income for the year ended December 31, 2024, was RMB 341.6 million, compared to RMB 402.4 million for the year ended December 31, 2023[5] - The company reported a net profit of RMB 401,975,000 for the year, after tax expenses of RMB 143,657,000[24] - The net profit for the reporting period was RMB 354.7 million, down from RMB 402.0 million in the same period of 2023, primarily due to a decline in health check business revenue[73] Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 4,858.5 million, an increase from RMB 4,637.8 million as of December 31, 2023[7] - Total liabilities as of December 31, 2024, were RMB 3,483.4 million, compared to RMB 3,523.7 million as of December 31, 2023[9] - Cash and cash equivalents as of December 31, 2024, were RMB 1,109.8 million, up from RMB 811.2 million as of December 31, 2023[7] - Trade receivables increased to RMB 357,264,000 in 2024 from RMB 315,006,000 in 2023, with a provision for losses of RMB 33,200,000[27] - Total bank borrowings as of December 31, 2024, amounted to RMB 797,000,000, a decrease of 6.2% from RMB 850,000,000 in 2023[37] - The company’s total lease liabilities as of December 31, 2024, were RMB 1,503,278,000, an increase of 7.4% from RMB 1,399,945,000 in 2023[38] - Current liabilities net of current assets decreased to RMB 323.3 million as of December 31, 2024, down from RMB 726.6 million in 2023, due to improved collection efficiency[80] - The debt-to-equity ratio improved to 46.4% as of December 31, 2024, down from 56.6% in 2023, due to a decrease in net financing and an increase in total equity[87] Revenue Segmentation - For the year ended December 31, 2024, total revenue was RMB 2,924,457,000, with segment revenue from the Comprehensive Hospital at RMB 604,418,000 and from the Health Check Center at RMB 2,358,755,000[23] - The segment profit for the Comprehensive Hospital was RMB 109,930,000, while the Health Check Center reported a segment profit of RMB 739,150,000[23] - The revenue from the comprehensive hospital business in 2024 was RMB 604.4 million, down 3.7% from RMB 627.7 million in 2023[61] - The revenue from the health check business in 2024 was RMB 2,358.8 million, a decline of 1.1% from RMB 2,386.0 million in 2023[62] Expenses and Costs - The sales cost for 2024 was RMB 1,756.7 million, an increase of 0.8% from RMB 1,743.2 million in 2023[63] - The administrative expenses rose to RMB 265.1 million in 2024 from RMB 223.8 million in 2023, primarily due to an increase in the number of health check centers[67] - Employee benefit expenses for 2024 were RMB 1,091,246,000, slightly down from RMB 1,098,021,000 in 2023[43] - The company’s income tax expense for 2024 was RMB 129,266,000, a decrease of 10.0% from RMB 143,657,000 in 2023[45] Operational Insights - The health check-up business remains the largest revenue contributor for the group, with 83 health check-up centers established nationwide, 75 of which are operational[57] - The customer satisfaction rate for on-site services in the health check-up segment reached 98.80%, an increase of 1.1 percentage points year-on-year[57] - The follow-up rate for significant abnormalities reached 83.2%, with 5,290 cases of tumor diagnosis tracked[57] - The company aims to enhance service quality and customer experience through strategic market focus and operational improvements in the health check-up business[57] - The company aims to enhance its core competitiveness by developing specialty departments and collaborating with high-level hospitals[59] - The company is focusing on digitalization and precision in healthcare services to strengthen its service capabilities across the entire health management chain[60] Governance and Compliance - The board consists of four executive directors and three independent non-executive directors, ensuring a strong independent element[101] - The company has maintained the required public float as per the listing rules of the Hong Kong Stock Exchange[99] - The audit committee reviewed the consolidated financial statements for the year ending December 31, 2024[104] - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with relevant provisions[100] - The company did not recommend any final dividend for the year ending December 31, 2024[97] Future Outlook - The group has confidence in future operating cash flows based on past experience and good credit standing, allowing for potential bank financing extensions[15] - The company plans to expand its operations, as indicated by the increase in property and equipment additions[24] - The company has adopted revised Hong Kong Financial Reporting Standards effective January 1, 2024, with no significant impact on past performance or financial position[16] - New and revised Hong Kong Financial Reporting Standards have been announced but are not expected to have a significant impact on the group in the foreseeable future[17]

[Management Discussion and Analysis](index=7&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides an overview of the Group's business operations, financial performance, and future strategies for the reporting period [Business Overview and Strategic Outlook](index=7&type=section&id=%E6%A5%AD%E5%8B%99%E6%A6%82%E8%A7%88%E5%8F%8A%E7%AD%96%E7%95%A5%E5%B1%95%E6%9C%9B) The Group operates two main segments: general hospitals and physical examination centers, with hospital services showing growth and the physical examination business focusing on high-quality development and product iteration [Industry Overview](index=7&type=section&id=%E8%A1%8C%E6%A5%AD%E6%A6%82%E8%A7%88) The healthcare service industry in 2024 benefits from supportive policies, technological advancements like AI, and increasing demand driven by health awareness and an aging population - From January to November 2023, the total number of outpatient and inpatient visits at national medical and health institutions increased by **9.4% year-on-year**, with private hospitals growing by **9.3%**, indicating a recovery in medical demand[19](index=19&type=chunk) - China's physical examination industry market size grew from **RMB 151.1 billion in 2018** to **RMB 217 billion in 2022**, with a compound annual growth rate of approximately **9.46%**, demonstrating a steady growth trend[20](index=20&type=chunk) [General Hospital Business](index=7&type=section&id=%E7%B6%9C%E5%90%88%E9%86%AB%E9%99%A2%E6%A5%AD%E5%8B%99) Nantong Ruici Hospital, a Grade 3 Class B general hospital, achieved year-on-year growth in inpatient services and surgeries, with an increased proportion of Grade IV surgeries, and expanded its rehabilitation center and collaborations Nantong Ruici Hospital Operating Data (For the six months ended June 30, 2024) | Metric | 2024 Period | 2023 Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Outpatient visits | 161,604 | 174,756 | -7.53% | | Inpatient visits | 15,760 | 14,977 | +5.23% | | Number of surgeries among discharged patients | 2,429 | - | +4.38% | | Proportion of Grade IV surgeries | 20.26% | - | increased by 3.41 percentage points | - Nantong Ruici Meidi Nursing Home had **89 elderly residents** as of June 30, 2024, with an occupancy rate of **84.0%**, a decrease from **100%** in the same period last year[22](index=22&type=chunk) [Physical Examination Business](index=8&type=section&id=%E9%AB%94%E6%AA%A2%E6%A5%AD%E5%8B%99) The physical examination business, a key revenue driver, operates under dual brands with 82 centers nationwide, focusing on enhancing customer experience, medical quality, and operational efficiency through digital initiatives - As of June 30, 2024, the Group operates **82 physical examination centers** nationwide, with **72 already operational**, covering **29 cities**[23](index=23&type=chunk) - During the reporting period, the Group established a "Service Promotion and Improvement Task Force," identifying **111 service improvement targets** based on customer feedback, achieving an improvement effectiveness rate of **93%**[23](index=23&type=chunk) [Outlook](index=9&type=section&id=%E5%89%8D%E6%99%AF) Nantong Ruici Hospital aims to become a Grade 3 Class A general hospital, focusing on six major discipline clusters, while the physical examination business will pursue high-quality development, product upgrades, and talent development to build a "medical-grade physical examination" brand - Nantong Ruici Hospital aims to become a **Grade 3 Class A general hospital**, one of Nantong City's three major medical centers, and implement a "Three-Year Plan for High-Quality Development of Key Specialties"[24](index=24&type=chunk) - The physical examination business will focus on product iteration and upgrades, developing post-examination medical services and derivative products to build a "medical-grade physical examination" brand image[24](index=24&type=chunk) [Financial Review](index=10&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's total revenue decreased by 4.1% to RMB 1.231 billion, primarily due to a high base in the physical examination business last year, leading to a decline in gross profit margin to 32.2% and a decrease in net profit [Revenue](index=10&type=section&id=%E6%94%B6%E5%85%A5) Total Group revenue decreased by 4.1% to RMB 1.231 billion, with general hospital revenue increasing by 3.7% to RMB 324 million, while physical examination revenue declined by 6.1% to RMB 923 million due to a higher comparative base in the prior year Segment Revenue (For the six months ended June 30) | Business Segment | 2024 (RMB '000) | 2023 (RMB '000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | General Hospital Business | 323,966 | 312,416 | +3.7% | | Physical Examination Business | 922,936 | 982,535 | -6.1% | | **Total** | **1,231,205** | **1,284,340** | **-4.1%** | [Cost of Sales and Gross Profit](index=11&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC%E8%88%87%E6%AF%9B%E5%88%A9) Cost of sales increased by 4.3% to RMB 835 million due to more physical examination centers, while gross profit decreased to RMB 396 million, with the gross profit margin falling 5.5 percentage points to 32.2% due to lower revenue and higher costs - Cost of sales increased by **4.3% year-on-year**, primarily due to an increase in the number of physical examination centers compared to the same period, leading to higher overall costs[27](index=27&type=chunk)[28](index=28&type=chunk) - Gross profit margin decreased from **37.7% to 32.2%**, mainly due to a decline in physical examination business revenue while its fixed costs remained relatively stable[29](index=29&type=chunk) [Operating Expenses and Other Gains/Losses](index=11&type=section&id=%E7%B6%93%E7%87%9F%E9%96%8B%E6%94%AF%E8%88%87%E5%85%B6%E4%BB%96%E6%90%8D%E7%9B%8A) Distribution and selling expenses decreased to RMB 109 million due to lower sales commissions, while administrative expenses slightly increased to RMB 112 million, and net finance costs rose to RMB 61 million primarily due to exchange losses - Distribution and selling expenses were **RMB 108.6 million**, a significant decrease from **RMB 163.2 million** in the same period last year, mainly due to reduced sales commissions and promotional expenses resulting from lower physical examination business revenue[30](index=30&type=chunk) - Net finance costs increased from **RMB 49 million to RMB 61 million**, primarily due to exchange losses incurred during the reporting period, compared to exchange gains in the same period last year[34](index=34&type=chunk) [Profit for the Period and Adjusted EBITDA](index=13&type=section&id=%E6%9C%9F%E9%96%93%E6%BA%A2%E5%88%A9%E8%88%87%E7%B6%93%E8%AA%BF%E6%95%B4EBITDA) Net profit for the period declined to RMB 87.1 million from RMB 126 million, while adjusted EBITDA decreased by 5.2% to RMB 409 million, with the adjusted EBITDA margin remaining largely stable at 33.2% Adjusted EBITDA Calculation (For the six months ended June 30) | Metric | 2024 (RMB '000) | 2023 (RMB '000) | | :--- | :--- | :--- | | Profit for the period | 87,121 | 126,219 | | Add: Income tax expense | 38,027 | 53,718 | | Add: Finance costs — net | 60,966 | 49,039 | | Add: Depreciation and amortization | 216,506 | 192,616 | | Add: Pre-opening expenses and trial operation EBITDA loss | 6,164 | 14,901 | | Less: Reversal of share options | — | (5,351) | | **Adjusted EBITDA** | **408,784** | **431,142** | | **Adjusted EBITDA Margin** | **33.2%** | **33.6%** | [Financial Position and Liquidity](index=14&type=section&id=%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%88%87%E6%B5%81%E5%8B%95%E6%80%A7) As of June 30, 2024, the Group's total assets were RMB 4.54 billion, with cash and cash equivalents at RMB 587 million and total borrowings at RMB 814 million, resulting in a net current liability of RMB 708 million and an increased gearing ratio, though management remains confident in continued operations Key Financial Position Indicators (As of June 30, 2024) | Metric | June 30, 2024 (RMB million) | December 31, 2023 (RMB million) | | :--- | :--- | :--- | | Cash and cash equivalents | 587.1 | 811.2 | | Total borrowings | 813.5 | 866.6 | | Net current liabilities | 708.2 | 726.6 | | Gearing ratio | 59.3% | 56.7% | - Capital expenditure during the reporting period was **RMB 322 million**, an increase year-on-year, primarily for the renovation of Nantong Ruici Hospital and the purchase of equipment and decoration for physical examination centers[47](index=47&type=chunk) - The Group's interest rate risk primarily stems from bank borrowings, with **RMB 342 million** being floating-rate loans; management closely monitors foreign exchange risk but currently has no hedging policy[51](index=51&type=chunk)[52](index=52&type=chunk) [Human Resources](index=16&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) As of June 30, 2024, the Group's employee count increased to 9,654, with compensation policies based on performance, seniority, and market conditions, complemented by regular training programs to enhance staff skills - As of June 30, 2024, the Group's total number of employees was **9,654**, an increase of **241** from the end of 2023[57](index=57&type=chunk) [Supplementary Information](index=17&type=section&id=%E8%A3%9C%E5%85%85%E8%B3%87%E6%96%99) This section provides additional details on interim dividends, corporate governance practices, interests of directors and major shareholders in securities, and share option schemes [Interim Dividend](index=17&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board resolved to declare an interim dividend of HKD 0.045 per share for the reporting period, totaling approximately HKD 71.6 million, expected to be paid around September 23, 2024 - An interim dividend of **HKD 0.045 per share** was declared, with the record date set for September 16, 2024[59](index=59&type=chunk) [Corporate Governance Practices](index=18&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The company generally complied with the Corporate Governance Code, with two deviations: no legal action insurance for directors and the Chairman and CEO roles held by the same individual, Dr. Fang Yixin, which the Board believes benefits strategic implementation and maintains power balance - The company deviated from Corporate Governance Code Provision C.2.1, as the roles of Chairman and Chief Executive Officer are not separated and are both held by **Dr. Fang Yixin**[61](index=61&type=chunk) [Interests of Directors, Chief Executive, and Substantial Shareholders in Securities](index=20&type=section&id=%E8%91%A3%E4%BA%8B%E3%80%81%E8%A1%8C%E6%94%BF%E7%B8%BD%E8%A3%81%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%96%BC%E8%AD%89%E5%88%B8%E7%9A%84%E6%AC%8A%E7%9B%8A) As of June 30, 2024, controlling shareholders Dr. Mei and Dr. Fang, through controlled corporations and spouse interests, jointly held approximately 60.28% of the company's shares, in addition to share options representing about 2.00% of relevant shares Shareholdings of Directors and Substantial Shareholders (As of June 30, 2024) | Shareholder Name | Capacity | Number of Ordinary Shares | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Dr. Mei | Interests in controlled corporation | 958,636,800 (L) | 60.28% | | Dr. Fang | Spouse's interests | 958,636,800 (L) | 60.28% | | Cuici | Beneficial owner | 958,636,800 (L) | 60.28% | [Share Option Schemes](index=23&type=section&id=%E9%A6%96%E6%AC%A1%E5%85%AC%E9%96%8B%E7%99%BC%E5%94%AE%E5%89%8D%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83%E5%8F%8A%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The company has a Pre-IPO Share Option Scheme and a Share Option Scheme, with 47,710,500 unexercised options at HKD 1.60 and 46,200,000 unexercised options at HKD 2.42 respectively as of the reporting period, with no options exercised, cancelled, or lapsed - Pre-IPO Share Option Scheme: As of June 30, 2024, there were **47,710,500 unexercised share options** with an exercise price of **HKD 1.60 per share**[75](index=75&type=chunk) - Share Option Scheme: As of June 30, 2024, there were **46,200,000 unexercised share options** with an exercise price of **HKD 2.42 per share**[79](index=79&type=chunk) [Interim Financial Information Review Report](index=27&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E5%AF%A9%E9%96%8B%E5%A0%B1%E5%91%8A) This section presents the auditor's review report on the Group's interim financial information, confirming its preparation in accordance with Hong Kong Accounting Standard 34 [Auditor's Review Report](index=27&type=section&id=%E6%A0%B8%E6%95%B8%E5%B8%AB%E5%AF%A9%E9%96%8B%E5%A0%B1%E5%91%8A) The company's auditor, BDO Limited, conducted a review of the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410, concluding that nothing came to their attention suggesting the information was not prepared in all material respects in accordance with HKAS 34 - The auditor issued an unmodified review conclusion, stating that the interim financial information was prepared in all material respects in accordance with **Hong Kong Accounting Standard 34**[82](index=82&type=chunk) [Interim Condensed Consolidated Financial Statements](index=28&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section provides the interim condensed consolidated financial statements, including the statement of financial position, profit or loss, cash flows, and a summary of notes, offering a comprehensive view of the Group's financial performance and position [Interim Condensed Consolidated Statement of Financial Position](index=28&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B3%87%E7%94%A2%E8%B2%A0%E5%80%B5%E8%A1%A8) As of June 30, 2024, total assets were RMB 4.543 billion, total liabilities RMB 3.356 billion, and total equity RMB 1.187 billion, with non-current assets primarily comprising property and equipment and right-of-use assets, and a net current liability of RMB 708 million Statement of Financial Position Summary (As of June 30, 2024) | Item | Amount (RMB '000) | | :--- | :--- | | **Total Assets** | **4,542,815** | | Non-current assets | 3,327,375 | | Current assets | 1,215,440 | | **Total Liabilities** | **3,356,183** | | Non-current liabilities | 1,432,552 | | Current liabilities | 1,923,631 | | **Total Equity** | **1,186,632** | [Interim Condensed Consolidated Statement of Profit or Loss](index=30&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2024, the Group reported revenue of RMB 1.231 billion, gross profit of RMB 396 million, operating profit of RMB 186 million, and profit for the period of RMB 87.12 million, with basic and diluted earnings per share at RMB 0.05 Statement of Profit or Loss Summary (For the six months ended June 30, 2024) | Item | Amount (RMB '000) | | :--- | :--- | | Revenue | 1,231,205 | | Gross profit | 396,287 | | Operating profit | 185,697 | | Profit before income tax | 125,148 | | **Profit for the period** | **87,121** | | Profit attributable to owners of the Company | 84,991 | | Basic earnings per share | RMB 0.05 | [Interim Condensed Consolidated Statement of Cash Flows](index=33&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Net cash generated from operating activities significantly decreased to RMB 73.79 million, with net cash used in investing activities at RMB 109 million and financing activities at RMB 188 million, resulting in a net decrease of RMB 224 million in cash and cash equivalents, ending the period at RMB 587 million Statement of Cash Flows Summary (For the six months ended June 30, 2024) | Item | Amount (RMB '000) | | :--- | :--- | | Net cash generated from operating activities | 73,794 | | Net cash used in investing activities | (109,021) | | Net cash used in financing activities | (188,343) | | **Net decrease in cash and cash equivalents** | **(223,570)** | | Cash and cash equivalents at beginning of period | 811,210 | | **Cash and cash equivalents at end of period** | **587,118** | [Summary of Notes to the Financial Statements](index=34&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) The notes detail accounting policies, segment information, key asset and liability items, and related party transactions, highlighting the Group's two business segments, a net current liability of RMB 708 million, and ongoing confidence in the going concern basis, with controlling shareholders providing guarantees for some borrowings - As of June 30, 2024, the Group's current liabilities exceeded current assets by **RMB 708 million**; however, the directors believe that, considering operating cash flows, unutilized bank facilities, and renewable bank facilities, the going concern basis for financial statement preparation remains appropriate[94](index=94&type=chunk) Segment Profit (For the six months ended June 30, 2024) | Business Segment | Segment Profit (RMB '000) | | :--- | :--- | | General Hospital | 72,356 | | Physical Examination Center | 215,616 | | Unallocated | (299) | | **Total** | **287,673** | - Controlling shareholders Dr. Fang and Dr. Mei provided personal guarantees for the Group's **RMB 58.5 million** borrowings as of June 30, 2024[186](index=186&type=chunk)

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 1,231.2 million, a decrease of 4.1% compared to RMB 1,284.3 million for the same period in 2023[1] - Gross profit for the same period was RMB 396.3 million, down from RMB 484.0 million in 2023[1] - Profit attributable to owners of the company was RMB 85.0 million, compared to RMB 123.4 million in the prior year[1] - Operating profit for the six months was RMB 185.7 million, down from RMB 228.5 million in the same period last year[6] - Total comprehensive income for the period was RMB 87.7 million, down from RMB 129.9 million in the previous year[7] - The group reported a net profit of RMB 87,121,000 for the period, after tax expenses of RMB 38,027,000[19] - The company reported a net profit of RMB 126,219,000 for the same period, after tax expenses of RMB 53,718,000[21] - Net profit for the period was RMB 87.1 million, down from RMB 126.2 million in the same period of 2023[60] Dividends - The board declared an interim dividend of HKD 0.045 per share for the reporting period[1] - The company declared an interim dividend of HKD 0.045 per share, totaling HKD 71.6 million, to be paid on or around September 23, 2024[78] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 4,542.8 million, a decrease from RMB 4,637.8 million as of December 31, 2023[3] - Total liabilities decreased to RMB 3,356.2 million from RMB 3,523.7 million at the end of 2023[5] - As of June 30, 2024, total assets of the group amounted to RMB 4,542,815,000, while total liabilities were RMB 3,356,183,000[20] - The company’s current liabilities exceeded current assets by RMB 708,191,000 as of June 30, 2024[10] - The total trade payables as of June 30, 2024, were RMB 162,086 thousand, a slight decrease from RMB 164,351 thousand as of December 31, 2023[34] Cash Flow and Financing - The company reported a net cash position of RMB 587.1 million as of June 30, 2024, compared to RMB 811.2 million at the end of 2023[3] - The group’s operating cash flow is primarily supported by cash generated from operations, bank borrowings, and unused bank financing[10] - The company’s bank borrowings stood at RMB 813,500,000 as of June 30, 2024, compared to RMB 850,000,000 as of December 31, 2023[30] - The total bank and other borrowings as of June 30, 2024, were RMB 813.5 million, down from RMB 866.6 million as of December 31, 2023[67] - The group reported financing costs of RMB 60,966 thousand for the six months ended June 30, 2024, compared to RMB 49,039 thousand in 2023, reflecting an increase of 24%[39] Operational Highlights - The comprehensive hospital segment generated revenue of RMB 323,966,000 and a segment profit of RMB 72,356,000[19] - The health check center segment reported revenue of RMB 922,936,000 and a segment profit of RMB 215,616,000[19] - The revenue from the comprehensive hospital business was RMB 308.3 million, an increase of 2.1% from RMB 301.8 million in the same period of 2023[49] - The revenue from the health check business was RMB 922.9 million, a decrease of 6.1% from RMB 982.5 million in the same period of 2023[50] - The group added property, plant, and equipment, right-of-use assets, and intangible assets totaling RMB 321,778,000 during the period[20] Employee and Administrative Expenses - Employee benefit expenses for the first half of 2024 were RMB 501,699 thousand, an increase of 1.3% from RMB 496,103 thousand in the same period last year[38] - The group incurred administrative expenses of RMB 111,793,000 for the six months ended June 30, 2024[19] Market and Industry Insights - In 2023, the total number of medical visits in China reached 6.41 billion, a year-on-year increase of 9.4%[45] - The hospital industry saw 3.86 billion visits, with public hospitals accounting for 3.23 billion visits (up 6.7%) and private hospitals 640 million visits (up 9.3%) from the previous year[45] - The health check-up industry in China grew from 151.1 billion yuan in 2018 to 217 billion yuan in 2022, with a compound annual growth rate of approximately 9.46%[45] Corporate Governance - The company has not separated the roles of Chairman and CEO, with Dr. Fang Yixin holding both positions to facilitate the implementation of new business strategies[80] - The board consists of four executive directors and three independent non-executive directors, ensuring a strong element of independence[80] - The company has adopted the standard code of conduct for securities trading, confirming compliance by all directors during the reporting period[81] Auditor and Reporting - The external auditor, Hong Kong Lixin Dehao CPA Limited, conducted an independent review of the group's interim financial information during the reporting period[83] - The interim report will be published on the Hong Kong Stock Exchange and the company's website, containing all required information[83]

Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching HKD 1.2 billion for the fiscal year 2023[1]. - For the fiscal year ending December 31, 2023, the revenue from continuing operations was RMB 2,992.7 million, an increase of 26.0% compared to RMB 2,375.0 million for the fiscal year ending December 31, 2022[16]. - The gross profit for the fiscal year ending December 31, 2023, was RMB 1,249.5 million, reflecting a 34.8% increase from RMB 927.2 million for the fiscal year ending December 31, 2022[16]. - The profit attributable to owners of the company for the fiscal year ending December 31, 2023, was RMB 363.8 million, up 25.1% from RMB 290.8 million for the fiscal year ending December 31, 2022[16]. - The adjusted EBITDA for the fiscal year ending December 31, 2023, was RMB 1,072.4 million, representing a 30.9% increase from RMB 819.1 million for the fiscal year ending December 31, 2022[16]. - The company recorded a net profit of RMB 401.975 million for the fiscal year ending December 31, 2023, compared to RMB 267.2 million for the fiscal year ending December 31, 2022[17]. - Revenue from the health check business increased by 35.2% to RMB 2,386.0 million in 2023, compared to RMB 1,765.4 million in 2022[61]. - The average spending per customer rose by 2.6% to RMB 555.2 in 2023 from RMB 541.0 in 2022[55]. Market Expansion and Strategy - The company provided a positive outlook for 2024, projecting a revenue growth of 10% to 12%[1]. - New product launches included a telemedicine platform, which is expected to contribute an additional HKD 100 million in revenue in 2024[1]. - The company is expanding its market presence with plans to open 10 new clinics in tier-2 cities across China by the end of 2024[1]. - The company is expanding its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[37]. - Future strategies include focusing on high-end health check services and expanding in key markets such as Shanghai, Beijing, Jiangsu, the Greater Bay Area, and Zhejiang[58]. User Engagement and Satisfaction - User data showed a growth in active patients by 20%, totaling 500,000 active patients by the end of 2023[1]. - The board announced a new strategy to improve patient engagement through digital health initiatives, aiming for a 30% increase in patient satisfaction scores[1]. - The company reported a significant increase in user data, with a year-over-year growth of 25% in active users[37]. - The company plans to enhance its digital platform, expecting a 50% increase in online engagement from users[37]. Research and Development - Research and development investments increased by 25%, focusing on advanced medical technologies and AI integration[1]. - The company has established partnerships with leading tech firms to leverage AI in healthcare, which is expected to drive innovation and efficiency[37]. - The company is investing in AI and 5G technology to adapt to current data demands in medical equipment[159]. Operational Efficiency - The company aims to enhance operational efficiency, targeting a 15% reduction in operational costs by 2025[1]. - The company has implemented measures to ensure that employees can confidentially report any concerns regarding financial reporting or internal controls[148]. - The company is focusing on optimizing its business expansion mechanisms and standardizing operational processes to mitigate risks associated with rapid growth[154]. Corporate Governance - The company is committed to high corporate governance standards and has complied with the corporate governance code throughout the reporting period[101]. - The board of directors consists of 4 executive directors (57.1%) and 3 independent non-executive directors (42.9%) as of December 31, 2023[111]. - The company has a policy ensuring that at least 10% of board members, senior management, and employees are female, with female employees making up approximately 81.5% of the total workforce[112]. - The company emphasizes compliance with legal and regulatory requirements in its governance practices[131]. Risk Management - The company has established a comprehensive risk management and internal control framework to actively manage risks associated with its strategic objectives[153]. - The company has strengthened its anti-fraud measures and established reporting channels to encourage employees to report any fraudulent activities[174]. - The company has established a crisis public relations management mechanism to prevent the escalation of risks and enhance public trust[169]. Sustainability and ESG Initiatives - The company has published ESG reports for eight consecutive years since 2016, reflecting a deepening understanding of ESG principles[200]. - An internal sustainable development system has been established to optimize ESG management processes[200]. - The integration of sustainable development concepts with business strategies aims to improve competitiveness and reduce operational risks[200]. Financial Management - The company maintains a cash flow management strategy to ensure sufficient liquidity for operational needs and has adequate unutilized borrowing capacity[96]. - The company is optimizing its capital management system to improve financial risk control and resource utilization efficiency, ensuring the safety and integrity of funds[166]. - The company has established a centralized fund management model to enhance the scientific management of financial resources and improve cash flow control[166].

Financial Performance - For the year ended December 31, 2023, the revenue from continuing operations was RMB 2,992.7 million, an increase of 26.0% compared to RMB 2,375.0 million for the year ended December 31, 2022[1]. - The gross profit from continuing operations for the year ended December 31, 2023, was RMB 1,249.5 million, reflecting a 34.8% increase from RMB 927.2 million for the year ended December 31, 2022[1]. - The profit attributable to owners of the company for the year ended December 31, 2023, was RMB 363.8 million, up 25.1% from RMB 290.8 million for the year ended December 31, 2022[1]. - The adjusted EBITDA from continuing operations for the year ended December 31, 2023, was RMB 1,072.4 million, representing a 30.9% increase from RMB 819.1 million for the year ended December 31, 2022[1]. - The operating profit for the year ended December 31, 2023, was RMB 656.9 million, compared to RMB 431.7 million for the year ended December 31, 2022[20]. - The net profit from continuing operations for the year ended December 31, 2023, was RMB 401.975 million, up from RMB 243.149 million for the year ended December 31, 2022[20]. - The company's net profit for the year ended December 31, 2023, was RMB 401,975 thousand, representing a 50.4% increase from RMB 267,187 thousand in 2022[25]. - Total comprehensive income for the year was RMB 402,350 thousand, up from RMB 268,912 thousand in the previous year, marking a growth of 49.5%[25]. Revenue Breakdown - Total revenue for the year ended December 31, 2023, was RMB 2,992,689,000, with a segment profit of RMB 868,925,000[60]. - The comprehensive hospital segment generated revenue of RMB 627,659,000, while the health check center segment contributed RMB 2,386,006,000[60]. - The health check-up business revenue reached RMB 2,386.0 million in 2023, a 35.2% increase from RMB 1,765.4 million in 2022, driven by a 31.8% growth in the number of check-ups and a 2.6% increase in average spending per person[137]. - Outpatient service revenue was RMB 84,198 thousand, down 4.3% from RMB 88,122 thousand in 2022[100]. - Inpatient service revenue increased to RMB 256,107 thousand, up 11.3% from RMB 230,269 thousand in 2022[100]. Assets and Liabilities - As of December 31, 2023, total assets amounted to RMB 4,637,755,000, with total liabilities of RMB 3,523,710,000[60]. - The company's equity attributable to owners increased to RMB 1,114,045 thousand from RMB 904,826 thousand, marking a growth of 23.1%[44]. - The total liabilities decreased to RMB 3,523,710 thousand from RMB 3,662,032 thousand, indicating a reduction of 3.8%[44]. - The financial liabilities of the group were RMB 3,269.1 million, a decrease from RMB 3,426.6 million as of December 31, 2022[8]. - Total assets as of December 31, 2023, amounted to RMB 4,637,755 thousand, a slight increase from RMB 4,566,858 thousand in 2022[34]. Employee and Operational Metrics - The number of employees in the group as of December 31, 2023, was 9,413, an increase from 8,737 as of December 31, 2022[16]. - The group operated 79 health check-up centers nationwide as of December 31, 2023, with 72 centers already in operation, covering 29 cities[158]. - The number of outpatient visits in the first nine months of 2023 reached 5.11 billion, a year-on-year increase of 6%[107]. - The nursing home operated at an occupancy rate of 89.6% as of December 31, 2023, down from 94.2% in 2022[110]. Cost and Expenses - The income tax expense for continuing operations in 2023 was RMB 143.7 million, compared to RMB 84.0 million in 2022, primarily due to the increase in profit from continuing operations[12]. - The group reported administrative expenses of RMB 223,845,000 and net impairment losses on financial assets of RMB 9,042,000[60]. - Employee benefit expenses increased to RMB 1,098,021, up from RMB 901,209 in 2022, reflecting a growth of approximately 21.8%[121]. - The sales cost for the health check business rose by 29.0% to RMB 1,260.5 million in 2023, driven by an increase in the number of health check visits[166]. Strategic Initiatives - The company established a Shanghai medical service center, enhancing its market expansion efforts by connecting with over 150 top doctors from 20 hospitals[129]. - The company’s collaboration with Fudan University hospitals focuses on oncology, indicating a strategic move towards specialized medical services[130]. - The group plans to continue focusing on high-end health check-up services and expand its presence in key markets such as Shanghai, Beijing, Jiangsu, the Greater Bay Area, and Zhejiang[158]. - The company implemented a "patient satisfaction first" action plan to enhance patient experience and satisfaction[163]. - The company aims to establish itself as one of the three major medical centers in Nantong by creating a comprehensive hospital with a focus on high-quality specialty development[163]. Dividends and Shareholder Returns - The group declared a special dividend of HKD 0.13 per share, totaling HKD 206,742,000 (approximately RMB 187,904,000)[153]. - Basic and diluted earnings per share attributable to owners of the company from continuing operations for the year ended December 31, 2023, was RMB 0.23, compared to RMB 0.18 for the year ended December 31, 2022[23]. - Basic and diluted earnings per share increased to RMB 0.23 from RMB 0.15, indicating a growth of 53.3%[31].

智通财经APP讯，瑞慈医疗(01526)发布公告，预期公司截至2023年12月31日止年度取得的公司拥有人应占溢利不超过人民币3.9亿元及不少于人民币3.5亿元。而截至2022年12月31日止年度的公司拥有人应占溢利为人民币2.91亿元。 公告称，预期取得截至2023年12月31日止年度的公司拥有人应占溢利主要由于2023年公司体检业务强劲复苏并实现进一步增长，全年收入大幅提升。 ...

Financial Performance - The company reported a revenue of HKD 500 million for the first half of 2023, representing a 15% increase compared to the same period last year[11]. - The company expects a revenue growth of 10-12% for the second half of 2023, driven by new service offerings and market expansion[11]. - The gross margin improved to 40%, up from 35% in the previous year, due to operational efficiencies[11]. - The health check business revenue grew by 101.2% in the first half of 2023, despite being a traditional off-peak season[29]. - The group's revenue from continuing operations reached RMB 1,284.3 million, a 59.6% increase from RMB 804.5 million in the same period of 2022, primarily due to the recovery of the health check business[36]. - Health check business revenue surged by 101.2% to RMB 982.5 million, driven by a 89.2% increase in customer numbers and a 6.4% rise in average spending per customer[39]. - The company reported a profit of RMB 126,219 thousand for the six months ended June 30, 2023, compared to a loss of RMB 168,553 thousand in the same period of 2022[142]. - The net profit for the six months ended June 30, 2023, was RMB 126.2 million, a significant improvement from a net loss of RMB 168.6 million in the same period of 2022[181]. - Adjusted EBITDA for the same period was RMB 431.1 million, with an adjusted EBITDA margin of 33.6%, compared to RMB 129.9 million and 16.1% in 2022[183]. Operational Developments - User data indicates a growth in active patients by 20%, reaching a total of 150,000 patients as of June 30, 2023[11]. - Investment in new technology development increased by 25%, focusing on telemedicine and AI-driven healthcare solutions[11]. - The company plans to expand its market presence in Tier 2 cities, targeting an additional 30% increase in service locations by the end of 2024[11]. - A strategic acquisition of a local healthcare provider is anticipated to enhance service capabilities and increase market share by 5%[11]. - The company has launched a new outpatient service, which is projected to contribute an additional HKD 50 million in revenue by the end of 2023[11]. - The company aims to implement a dual-brand strategy with "Ruici Health Check" and "Xingyuan International Health Check" to meet diverse consumer health management needs[29]. - The company plans to enhance service quality and operational efficiency while focusing on high-quality development and talent cultivation for sustainable growth[29]. - The hospital's second-phase comprehensive ward building, with 1,500 beds, was officially put into use in April 2023, significantly enhancing its medical service capacity[30]. Market Trends - The health check industry in China is projected to grow from RMB 468 billion in 2012 to RMB 1,890 billion in 2021, with a compound annual growth rate (CAGR) of 16.78%, and is expected to reach RMB 3,900 billion by 2025[14]. - The health check business received 1,844,454 customers, a significant increase of 89.2% compared to 975,109 customers in the same period last year[26]. - The average spending per customer for health checks increased to RMB 532.6, up 6.4% from RMB 500.5 in the previous year[26]. - The hospital's outpatient visits in March 2023 reached 380 million nationwide, a year-on-year increase of 11.5%[20]. Financial Position - As of June 30, 2023, the company's financial liabilities amounted to RMB 2,988.9 million, a decrease from RMB 3,426.6 million as of December 31, 2022, representing a reduction of approximately 12.8%[61]. - The total book value of assets pledged for the company's borrowings was RMB 182,374,000 as of June 30, 2023, down from RMB 202,739,000 as of December 31, 2022[62]. - The company's total equity and liabilities amounted to RMB 4,259,058 thousand as of June 30, 2023, down from RMB 4,566,858 thousand at the end of 2022, a decrease of about 6.7%[134]. - The company's equity attributable to owners was RMB 1,075,632,000 as of June 30, 2023, compared to RMB 953,918,000 at the end of 2022[125]. - Total liabilities decreased to RMB 3,233,149 thousand as of June 30, 2023, down from RMB 3,662,032 thousand at the end of 2022, representing a reduction of approximately 11.7%[134]. Shareholder Information - As of June 30, 2023, the directors and CEO held a total of 872,550,000 shares, representing approximately 54.87% of the company's issued share capital[80]. - Major shareholders include Tsui Chi with 872,550,000 shares (54.87%) and Renaissance Healthcare Holdings Limited with 268,286,800 shares (16.87%) as of June 30, 2023[117]. - The company has granted stock options totaling 47,710,500 shares under the pre-IPO stock option plan, representing approximately 3.0% of the total issued share capital as of the reporting date[100]. - The stock options will vest over a period of six years, with 70% vesting after six years, which aligns incentives for long-term value creation[101]. Compliance and Governance - The independent auditor conducted a review of the interim financial statements in accordance with Hong Kong Review Standards, confirming no significant issues were found[64]. - The company’s directors confirmed compliance with the standard code during the reporting period, with no known breaches by senior management[67]. - The company has committed to ensuring compliance with public float requirements, indicating a focus on maintaining regulatory standards[108].

Revenue Performance - For the six months ended June 30, 2023, the total revenue reached RMB 1,284,340,000, representing a 59.6% increase compared to RMB 804,538,000 for the same period in 2022[24] - The health check business revenue surged by 101.2% to RMB 982,535,000, up from RMB 488,439,000 in the previous year[24] - The comprehensive hospital business revenue decreased by 3.1% to RMB 312,416,000, down from RMB 322,260,000 in the same period last year[24] - The total revenue from continuing operations for the six months ended June 30, 2023, was RMB 1,284.34 million, an increase of 59.5% compared to RMB 804.54 million for the same period in 2022[88] - The revenue from the health check-up business reached RMB 982.5 million, an increase of 101.2% compared to RMB 488.4 million in the same period of 2022[197] Profitability - The net profit from continuing operations for the period was RMB 126.22 million, a turnaround from a loss of RMB 74.44 million in the same period last year[88] - The company reported a total comprehensive income of RMB 129.91 million for the period, compared to a loss of RMB 168.55 million in the previous year[89] - The group reported a net profit of RMB 126.2 million for the period, compared to a loss of RMB 168.6 million in the previous year[102] - The profit attributable to owners of the company for the six months ended June 30, 2023, was RMB 123.4 million, compared to a loss of RMB 117.9 million for the same period in 2022[105] - Basic and diluted earnings per share from continuing operations were RMB 0.08, compared to a loss of RMB 0.02 for the same period in 2022[101] Expenses and Costs - The sales cost for the continuing operations during the reporting period was RMB 800.3 million, an increase of 24.5% compared to RMB 642.6 million in the same period of 2022[26] - The company reported employee benefit expenses of RMB 496,103,000 for the first half of 2023, an increase of 14.9% from RMB 431,547,000 in the same period of 2022[13] - The cost of sales for the health check business was RMB 569.0 million, up 43.0% from RMB 398.0 million in the same period last year, primarily due to increased variable costs associated with higher business volume[174] - The company incurred administrative expenses of RMB 100,393,000 during the reporting period[137] - The company's administrative expenses for the reporting period were RMB 100.4 million, a slight increase from RMB 97.4 million in the same period of 2022[200] Assets and Liabilities - The company’s total liabilities decreased to RMB 398,925,000 as of June 30, 2023, compared to RMB 481,852,000 as of December 31, 2022, indicating a reduction of 17.2%[10] - The total assets decreased to RMB 4,259.06 million as of June 30, 2023, from RMB 4,566.86 million at the end of 2022[87] - The total liabilities as of June 30, 2023, amounted to RMB 3,233.1 million, a decrease from RMB 3,662.0 million as of December 31, 2022[108] - Current liabilities exceeded current assets by RMB 827.2 million as of June 30, 2023[113] - The group’s total trade receivables decreased from RMB 287,752,000 to RMB 256,360,000 over the six-month period[143] Operational Highlights - The nursing home under Nantong Ruici had an occupancy rate of 100% with 106 residents as of June 30, 2023, compared to 96.2% with 102 residents in the same period of 2022[47] - The number of outpatient services provided was 174,756, representing a year-on-year growth of 6.6%, while inpatient services increased by 22.9% to 14,977[168] - The number of customers served in the health check-up segment rose to 1,844,454, a significant increase of 89.2% from 975,109 in the same period last year[195] - The average spending per customer in the health check-up segment increased by 6.4% to RMB 532.6 from RMB 500.5 in the previous year[195] - The company anticipates continued recovery in hospital treatment volumes in the second half of 2023, driven by the easing of pandemic control measures[192] Strategic Initiatives - The company plans to enhance its medical service capacity with the opening of a new 12-story comprehensive ward building at Nantong Ruici Hospital, increasing bed capacity to 1,500[20] - The company is focusing on expanding its health check services in response to the growing demand driven by an aging population and increasing health awareness[19] - The company has established partnerships with Fudan University and Yangzhou University to enhance its medical talent development and service quality[20] - The group has plans to enhance customer satisfaction through various initiatives and improve medical quality control, focusing on key disciplines such as ultrasound and imaging[48] - The company continues to focus on dual-brand operations and market expansion in key areas such as Shanghai and Jiangsu, while exploring opportunities in other major cities[169]

Financial Performance - For the year ended December 31, 2022, the revenue from continuing operations was RMB 2,375.0 million, a decrease of 0.1% compared to RMB 2,377.2 million for the year ended December 31, 2021[57]. - The gross profit from continuing operations for the year ended December 31, 2022, was RMB 927.2 million, down 4.9% from RMB 975.2 million for the year ended December 31, 2021[57]. - The profit attributable to owners of the company for the year ended December 31, 2022, was RMB 290.8 million, compared to RMB 181.6 million for the year ended December 31, 2021[57]. - The company reported a total revenue of HKD 1.2 billion for the fiscal year ending December 31, 2022, representing a year-on-year increase of 15%[72]. - For the year ended December 31, 2022, the adjusted EBITDA for continuing operations was RMB 819.1 million, a decrease of 2.9% compared to RMB 843.2 million for the year ended December 31, 2021[75]. - Total revenue for the year ended December 31, 2022, was RMB 2,375.0 million, slightly down from RMB 2,377.2 million in 2021[77]. - The net profit attributable to the owners of the company for the year ended December 31, 2022, was RMB 290.8 million, compared to RMB 181.6 million in 2021, representing an increase of 60.4%[77]. - Comprehensive hospital business revenue decreased by 10.5% to RMB 609.6 million in 2022, primarily due to an 11.1% decline in inpatient numbers[125]. - Health check-up business revenue increased by 4.1% to RMB 1,765.4 million in 2022, driven by a 0.5% growth in the number of check-ups and a 3.5% increase in average spending per customer[125]. Operational Highlights - The total number of employees increased to 1,500, with a turnover rate of 10% across various demographics[69]. - The number of inpatient visits at Nantong Ruici Hospital reached 26,141 in 2022, down from 29,395 in 2021, while outpatient visits were 356,610, slightly down from 357,611 in 2021[82]. - In 2022, Nantong Ruici Hospital's revenue reached RMB 631.1 million[82]. - The health check business received a total of 3,258,925 customers, generating revenue of RMB 1,765.39 million, which represents a 4.1% increase compared to 2021[84]. - The company continues to implement a dual-brand strategy with "Ruici Health Check" and "Xingyuan International Health Check," focusing on key markets in Shanghai and Jiangsu while exploring new markets in the Greater Bay Area[84]. - The company launched the second phase of the Xinyuanhui International Health Check-up Center in September 2022, aiming to meet diverse medical service needs[106]. Strategic Initiatives - The company aims to reduce greenhouse gas emissions by 20% by 2025, with specific steps outlined to achieve this target[68]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share by 2025[65]. - The company aims to enhance operational efficiency and meet new consumer demands for health check services in the post-pandemic era[85]. - The management team expresses confidence in the significant development potential of the healthcare industry, driven by a large population base, aging trends, technological innovation, and deepening healthcare reforms[85]. - The company is committed to high-quality development in the healthcare service industry as part of the 14th Five-Year Plan[104]. Governance and Compliance - As of December 31, 2022, the group had no significant legal disputes[11]. - There were no significant transactions or contracts involving directors or their related entities during the year ended December 31, 2022[1]. - The group did not pay any remuneration to directors or the top five highest-paid individuals as bonuses for joining or leaving the group during the year ended December 31, 2022[4]. - The group has adopted a share option scheme as an incentive for directors and eligible employees[4]. - The group confirmed compliance with a non-competition agreement established with its controlling shareholders as of December 31, 2022[8]. - The board of directors consists of seven members, including executive and independent non-executive directors[24]. Environmental and Safety Measures - The total water consumption was reported at 500,000 cubic meters, with a density of 0.5 cubic meters per production unit[67]. - The company has implemented new safety measures, resulting in a 30% reduction in workplace accidents over the past three years[66]. - The total amount of hazardous waste generated was reported at 1,000 tons, with a goal to reduce this by 15% in the next fiscal year[62]. - The company has identified and addressed significant climate-related risks, implementing a comprehensive policy to mitigate these impacts[61]. Financial Position - The total assets as of December 31, 2022, amounted to RMB 4,566.9 million, an increase from RMB 4,536.2 million in 2021[77]. - The total liabilities as of December 31, 2022, were RMB 3,662.0 million, a decrease from RMB 3,948.8 million in 2021[77]. - The company's current liabilities exceeded current assets by RMB 797.5 million as of December 31, 2022, compared to RMB 588.4 million in 2021[155]. - Cash and cash equivalents as of December 31, 2022, were RMB 720.1 million, down from RMB 771.3 million in 2021[156]. - The debt-to-equity ratio improved to 63.6% as of December 31, 2022, compared to 77.1% in 2021, due to a decrease in net financing and an increase in total equity[167]. Board Diversity and Development - The board consists of 4 executive directors (57.1%) and 3 independent non-executive directors (42.9%) as of December 31, 2022[190][191]. - The gender diversity on the board is 4 males (57.1%) and 3 females (42.9%)[193][194]. - The company aims for a minimum gender ratio of 10% for both the board and senior management, with currently 50% of senior management being female[195]. - Approximately 80.7% of the total workforce are female employees[195]. - The company provides ongoing professional development for all directors, ensuring they stay updated on relevant laws and regulations[199].