Group 1 - The core viewpoint of the article is that 瑞慈医疗 (RuiCi Medical) reported a decline in both revenue and profit for the six months ending June 30, 2025, indicating challenges in its business operations [1] - The company achieved a revenue of 1.145 billion yuan, representing a year-on-year decrease of 7% [1] - The profit attributable to the company's owners was 55.941 million yuan, which is a year-on-year decrease of 34.18% [1] - The earnings per share were reported at 0.04 yuan [1] - The decline in revenue is primarily attributed to external competitive pressures affecting the comprehensive hospital business [1]

Core Viewpoint - 瑞慈医疗 reported a revenue of 1.145 billion yuan for the six months ending June 30, 2025, representing a year-on-year decrease of 7% [1] - The profit attributable to the company's owners was 55.941 million yuan, down 34.18% year-on-year, with earnings per share at 0.04 yuan [1] Revenue Performance - The decline in revenue is primarily attributed to the competitive pressure faced by the integrated hospital business, leading to a decrease in income [1]

[Financial Summary](index=1&type=section&id=Financial%20Summary) [Financial Performance Highlights](index=1&type=section&id=Financial%20Performance%20Highlights) Revenue decreased **7.0%** to **RMB 1,144.8 million** for the six months ended June 30, 2025, with profit attributable to owners declining and no interim dividend declared Key Financial Data for the Six Months Ended June 30, 2025 (RMB million) | Indicator | 2025 | 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 1,144.8 | 1,231.2 | -7.0% | | Gross Profit | 407.6 | 396.3 | +2.8% | | Profit Attributable to Owners of the Company | 55.9 | 85.0 | -34.2% | | Adjusted EBITDA | 386.6 | 408.8 | -5.4% | - The Board has resolved not to declare any interim dividend for the reporting period[4](index=4&type=chunk) [Interim Condensed Consolidated Financial Statements](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets were **RMB 4,716.8 million**, total liabilities **RMB 3,299.9 million**, and equity attributable to owners **RMB 1,400.8 million** Summary of Consolidated Statement of Financial Position as of June 30, 2025 (RMB thousand) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 3,139,527 | 3,191,336 | | Current assets | 1,577,257 | 1,667,165 | | **Total Assets** | **4,716,784** | **4,858,501** | | **Equity** | | | | Equity attributable to owners of the Company | 1,400,784 | 1,345,843 | | Non-controlling interests | 16,109 | 29,300 | | **Total Equity** | **1,416,893** | **1,375,143** | | **Liabilities** | | | | Non-current liabilities | 1,456,419 | 1,492,846 | | Current liabilities | 1,843,472 | 1,990,512 | | **Total Liabilities** | **3,299,891** | **3,483,358** | | **Total Equity and Liabilities** | **4,716,784** | **4,858,501** | [Consolidated Statement of Profit or Loss](index=5&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, revenue was **RMB 1,144.8 million**, gross profit **RMB 407.6 million**, and profit for the period **RMB 79.7 million** Summary of Consolidated Statement of Profit or Loss for the Six Months Ended June 30, 2025 (RMB thousand) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 1,144,849 | 1,231,205 | | Cost of sales | (737,259) | (834,918) | | **Gross Profit** | **407,590** | **396,287** | | Operating profit | 168,959 | 185,697 | | Profit before income tax | 119,441 | 125,148 | | Income tax expense | (39,696) | (38,027) | | **Profit for the period** | **79,745** | **87,121** | | Profit attributable to owners of the Company | 55,941 | 84,991 | | Profit attributable to non-controlling interests | 23,804 | 2,130 | | Basic and diluted earnings per share | RMB 0.04 | RMB 0.05 | [Consolidated Statement of Comprehensive Income](index=6&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, total comprehensive income was **RMB 78.7 million**, with **RMB 54.9 million** attributable to owners Summary of Consolidated Statement of Comprehensive Income for the Six Months Ended June 30, 2025 (RMB thousand) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period | 79,745 | 87,121 | | Items that will not be reclassified subsequently to profit or loss | | | | — Fair value changes of financial assets at fair value through other comprehensive income | (1,000) | 600 | | **Total comprehensive income for the period** | **78,745** | **87,721** | | Total comprehensive income attributable to owners of the Company | 54,941 | 85,591 | | Total comprehensive income attributable to non-controlling interests | 23,804 | 2,130 | [Notes to the Financial Statements](index=7&type=section&id=Notes%20to%20the%20Financial%20Statements) [General Information and Basis of Preparation](index=7&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The company provides integrated hospital and physical examination services in China, preparing interim financials under HKAS 34, with the going concern assumption deemed appropriate despite current liabilities exceeding current assets - The Group's business scope primarily involves providing integrated hospital services and physical examination services in China[11](index=11&type=chunk) - These interim condensed consolidated financial information have been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[13](index=13&type=chunk) - Despite current liabilities exceeding current assets by **RMB 266.2 million** as of June 30, 2025, the Board considers the going concern basis appropriate due to confidence in future operating cash flows and the renewability of bank facilities[14](index=14&type=chunk) [Accounting Policies](index=8&type=section&id=Accounting%20Policies) HKAS 21 (Revised) — Lack of Exchangeability was adopted in this period with no material impact, and new/revised standards not yet adopted are also listed - Hong Kong Accounting Standard 21 (Revised) — Lack of Exchangeability has been adopted, with no impact on amounts recognized in prior years and no material impact expected on current or future reporting periods[16](index=16&type=chunk) New and Revised Standards and Interpretations Not Yet Adopted | Standard | Description | Effective Date | | :--- | :--- | :--- | | HKFRS 9 and HKFRS 7 (Amendments) | Amendments to Classification and Measurement of Financial Instruments | January 1, 2026 | | HKFRS 18 | Presentation and Disclosure in Financial Statements | January 1, 2027 | | IFRS 19 | Disclosures for Non-Publicly Accountable Subsidiaries | January 1, 2027 | | HKFRS 10 and HKAS 28 (Amendments) | Sale or Contribution of Assets between an Investor and its Associate or Joint Venture | To be determined | [Segment Information](index=9&type=section&id=Segment%20Information) The Group manages its business through two operating segments: integrated hospitals and physical examination centers, with major assets located in China, showing a decline in integrated hospital revenue and profit - The Group manages its business by two operating segments based on its services: integrated hospitals and physical examination centers[20](index=20&type=chunk) - The Group's principal assets are all located in Mainland China, thus no geographical segment analysis is presented[20](index=20&type=chunk) Segment Results for the Six Months Ended June 30, 2025 (RMB thousand) | Indicator | Integrated Hospitals | Physical Examination Centers | Total | | :--- | :--- | :--- | :--- | | Revenue | 234,004 | 925,129 | 1,144,849 | | Segment Profit | 33,258 | 241,539 | 273,119 | | Segment Assets (June 30, 2025) | 1,285,877 | 4,168,976 | 4,716,784 | | Segment Liabilities (June 30, 2025) | 590,167 | 3,065,492 | 3,299,891 | | Additions to Property and Equipment, Right-of-Use Assets and Intangible Assets | 13,969 | 161,118 | 175,087 | | Depreciation and Amortization | 24,740 | 186,646 | 211,436 | Segment Results for the Six Months Ended June 30, 2024 (RMB thousand) | Indicator | Integrated Hospitals | Physical Examination Centers | Total | | :--- | :--- | :--- | :--- | | Revenue | 323,966 | 922,936 | 1,231,205 | | Segment Profit | 72,356 | 215,616 | 287,673 | | Additions to Property and Equipment, Right-of-Use Assets and Intangible Assets | 37,419 | 284,359 | 321,778 | | Depreciation and Amortization | 24,255 | 192,251 | 216,506 | [Key Assets and Liabilities](index=14&type=section&id=Key%20Assets%20and%20Liabilities) This section details the composition and changes in the company's key assets and liabilities, including right-of-use assets, deferred tax assets, trade receivables, cash and bank balances, prepayments, share capital, borrowings, lease liabilities, contract liabilities, and trade and other payables [Right-of-Use Assets](index=14&type=section&id=Right-of-Use%20Assets) As of June 30, 2025, the net book value of right-of-use assets was **RMB 1,260.8 million**, a decrease from December 31, 2024, primarily comprising properties and land use rights Net Book Value of Right-of-Use Assets (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Properties | 1,258,170 | 1,294,849 | | Land use rights | 2,648 | 2,698 | | **Total** | **1,260,818** | **1,297,547** | - Land use rights with a total carrying amount of **RMB 2,648 thousand** as of June 30, 2025, were pledged for the Group's borrowings[31](index=31&type=chunk) [Deferred Tax Assets](index=17&type=section&id=Deferred%20Tax%20Assets) As of June 30, 2025, total deferred tax assets amounted to **RMB 143.6 million**, mainly arising from tax losses, right-of-use assets, and lease liabilities Composition of Deferred Tax Assets (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Tax losses | 66,886 | 37,005 | | Right-of-use assets and lease liabilities | 47,794 | 45,401 | | Share option scheme | 21,882 | 24,279 | | Loss allowance for financial assets | 4,885 | 8,248 | | Impairment of property and equipment | 2,188 | 3,303 | | **Total Deferred Tax Assets** | **143,635** | **118,236** | [Trade Receivables](index=18&type=section&id=Trade%20Receivables) As of June 30, 2025, net trade receivables were **RMB 244.8 million**, a significant decrease from year-end 2024, with the majority due within six months Trade Receivables (RMB thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gross trade receivables | 262,714 | 357,264 | | Less: Loss allowance | (17,898) | (33,200) | | **Net amount** | **244,816** | **324,064** | Ageing Analysis of Trade Receivables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 6 months | 235,080 | 341,458 | | 6 months to 1 year | 17,694 | 8,079 | | 1 to 2 years | 2,984 | 2,911 | | 2 to 3 years | 2,669 | 646 | | Over 3 years | 4,287 | 4,170 | | **Total** | **262,714** | **357,264** | [Cash and Bank Balances](index=19&type=section&id=Cash%20and%20Bank%20Balances) As of June 30, 2025, cash and cash equivalents totaled **RMB 1,028.8 million**, primarily denominated in RMB, with restricted cash for natural gas heating service deposits and bank guarantees Cash and Cash Equivalents (RMB thousand) | Currency | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | RMB | 1,023,961 | 1,103,627 | | USD | 1,724 | 1,963 | | HKD | 3,159 | 4,227 | | **Total** | **1,028,844** | **1,109,817** | - Restricted cash includes **RMB 938 thousand** for natural gas heating service deposits and **RMB 1,099 thousand** for bank guarantee letters[37](index=37&type=chunk) [Prepayments](index=19&type=section&id=Prepayments) As of June 30, 2025, total prepayments were **RMB 66.4 million**, mainly for property and equipment, consumables, and other prepaid expenses Prepayments (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current: Prepayments for property and equipment | 35,637 | 25,030 | | Current: Prepayments for consumables | 13,699 | 13,840 | | Current: Others | 17,022 | 16,209 | | **Total Prepayments** | **66,358** | **55,079** | - Other prepayments primarily include prepaid advertising expenses and prepaid property management fees[39](index=39&type=chunk) [Share Capital](index=20&type=section&id=Share%20Capital) As of June 30, 2025, and December 31, 2024, issued ordinary share capital remained unchanged at **RMB 1,065 thousand**, with the number of shares constant Ordinary Shares, Issued and Fully Paid | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of ordinary shares | 1,590,324,000 | 1,590,324,000 | | Share capital (RMB thousand) | 1,065 | 1,065 | [Borrowings](index=20&type=section&id=Borrowings) As of June 30, 2025, total bank borrowings were **RMB 770.8 million**, all secured and/or guaranteed, and denominated in RMB Bank Borrowings (RMB thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank borrowings — secured and/or guaranteed | 770,800 | 797,000 | | Less: Non-current portion of non-current borrowings | (240,400) | (254,600) | | **Current borrowings** | **530,400** | **542,400** | - All borrowings are denominated in RMB, and their fair value approximates their carrying amount[40](index=40&type=chunk) [Lease Liabilities](index=21&type=section&id=Lease%20Liabilities) As of June 30, 2025, the present value of lease liabilities was **RMB 1,474.9 million**, with **RMB 264.4 million** due within one year Present Value of Minimum Lease Payments (RMB thousand) | Term | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within one year | 264,433 | 272,308 | | After one year but within two years | 244,247 | 252,859 | | After two years but within five years | 523,028 | 547,076 | | After five years | 443,153 | 431,035 | | **Total** | **1,474,861** | **1,503,278** | [Contract Liabilities](index=21&type=section&id=Contract%20Liabilities) As of June 30, 2025, total contract liabilities were **RMB 630.5 million**, primarily from sales of physical examination cards, prepayments from physical examination customers, and hospital patients Contract Liabilities (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Sales of physical examination cards | 581,547 | 559,060 | | Prepayments from physical examination customers | 39,916 | 64,298 | | Prepayments from hospital patients | 9,059 | 7,257 | | **Total** | **630,522** | **630,615** | [Trade and Other Payables](index=22&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables were **RMB 385.9 million**, a significant decrease from year-end 2024, with trade payables to third parties being the largest component Trade and Other Payables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables to third parties | 145,681 | 162,299 | | Payables for purchase of property and equipment | 81,672 | 111,248 | | Accrued staff salaries and benefits | 69,287 | 129,427 | | Deposits received | 24,698 | 19,082 | | **Total** | **385,868** | **495,179** | Ageing Analysis of Trade Payables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 120,841 | 141,205 | | 3 to 6 months | 5,110 | 3,413 | | 6 months to 1 year | 5,957 | 3,953 | | 1 to 2 years | 4,593 | 3,887 | | 2 to 3 years | 1,118 | 979 | | Over 3 years | 8,062 | 8,862 | | **Total** | **145,681** | **162,299** | - Trade payables are generally settled within **30 to 60 days** after recognition[43](index=43&type=chunk) [Revenue and Expense Details](index=23&type=section&id=Revenue%20and%20Expense%20Details) This section details the composition of the company's revenue and major expenses, reflecting its cost structure and profitability in operating activities [Revenue Composition](index=23&type=section&id=Revenue%20Composition) For the six months ended June 30, 2025, total revenue was **RMB 1,144.8 million**, with physical examination services contributing the most, while integrated hospital service revenues declined across all categories Revenue Composition (RMB thousand) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | **Integrated Hospitals** | | | | Outpatient drug revenue | 21,834 | 33,035 | | Outpatient service revenue | 27,988 | 34,607 | | Inpatient drug revenue | 62,365 | 104,406 | | Inpatient service revenue | 107,533 | 136,221 | | **Physical Examination Centers** | | | | Physical examination service revenue | 924,923 | 922,445 | | Management service revenue and others | 206 | 491 | | **Total** | **1,144,849** | **1,231,205** | [Cost of Sales and Expenses](index=24&type=section&id=Cost%20of%20Sales%20and%20Expenses) For the six months ended June 30, 2025, total expenses were **RMB 991.0 million**, with employee benefit expenses, depreciation and amortization, drug costs, and medical consumables being the main components Major Expenses (RMB thousand) | Expense Item | 2025 | 2024 | | :--- | :--- | :--- | | Employee benefit expenses | 469,101 | 501,699 | | Depreciation and amortization | 211,436 | 216,506 | | Drug costs | 55,549 | 92,307 | | Medical consumables costs | 51,788 | 50,827 | | Outsourcing testing expenses | 49,140 | 61,058 | | Utility expenses | 45,512 | 44,441 | | Platform service fees | 29,612 | 23,846 | | Advertising expenses | 11,505 | 4,576 | | Impairment loss on financial assets/(reversal of impairment loss) | 2,543 | (1,871) | | **Total** | **991,013** | **1,053,454** | [Finance Costs and Income](index=25&type=section&id=Finance%20Costs%20and%20Income) For the six months ended June 30, 2025, net finance costs were **RMB 50.1 million**, primarily comprising interest on lease liabilities and borrowings, partially offset by interest income Net Finance Costs (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest on lease liabilities | 42,168 | 47,636 | | Interest on borrowings | 11,071 | 15,897 | | Net exchange loss | 61 | 522 | | Finance costs | 53,300 | 64,055 | | Less: Interest income | (3,214) | (3,089) | | **Net Finance Costs** | **50,086** | **60,966** | [Income Tax Expense](index=25&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was **RMB 39.7 million**, mainly consisting of current and deferred income tax Income Tax Expense (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current income tax — current period | 46,692 | 48,203 | | Current income tax — under-provision in prior years | 18,403 | 4,854 | | Deferred income tax | (25,399) | (15,030) | | **Income Tax Expense** | **39,696** | **38,027** | - The applicable corporate income tax rate for the Group's subsidiaries in Mainland China is generally **25%**, with some subsidiaries enjoying a **15%** preferential rate[48](index=48&type=chunk) [Earnings Per Share and Dividends](index=26&type=section&id=Earnings%20Per%20Share%20and%20Dividends) For the six months ended June 30, 2025, basic earnings per share were **RMB 0.04**, and the Board resolved not to declare an interim dividend [Earnings Per Share](index=26&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share were **RMB 0.04**, a decrease from **RMB 0.05** in the prior year, with no dilutive effect due to option exercise prices Earnings Per Share | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to owners of the Company (RMB thousand) | 55,941 | 84,991 | | Weighted average number of ordinary shares in issue | 1,590,324,000 | 1,590,324,000 | | **Basic Earnings Per Share (RMB)** | **0.04** | **0.05** | - For the six months ended June 30, 2025 and 2024, there was no dilutive effect as the average market price of the Company's shares was lower than the assumed exercise price of the share option arrangements[52](index=52&type=chunk) [Dividends](index=26&type=section&id=Dividends) The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: HKD 0.045 per share)[53](index=53&type=chunk) [Business Overview and Strategic Outlook](index=27&type=section&id=Business%20Overview%20and%20Strategic%20Outlook) [Industry Overview](index=27&type=section&id=Industry%20Overview) China's healthcare industry is transforming, driven by policy and technology, showing multi-level development, increased competition, and innovative models, with AI widely applied and the health check-up market expanding - Policy level: Deepening medical service price reform, promoting equitable grassroots healthcare and upgrading public health services, and achieving universal access to medical technology through expanded medical insurance catalogs and centralized procurement of medical devices[54](index=54&type=chunk) - Technology level: Artificial intelligence is deeply integrated with medical scenarios, with AI-assisted diagnosis achieving breakthrough progress in imaging, and **92.6%** of national Grade III Class A hospitals having adopted AI technology by 2024[54](index=54&type=chunk) - Physical examination industry: The market size is expanding year by year, with the health check-up market expected to approach **RMB 380 billion** by 2025, primarily driven by an increase in average customer spending[55](index=55&type=chunk) [Integrated Hospital Business](index=28&type=section&id=Integrated%20Hospital%20Business) Nantong Ruici Hospital, a Grade III Class B general hospital, partnered with Shanghai Oriental Hospital to enhance management and medical services, though outpatient and inpatient visits declined during the period - Nantong Ruici Hospital: A large comprehensive hospital integrating medical treatment, teaching, and research, currently a Grade III Class B general hospital and a designated medical insurance unit[57](index=57&type=chunk) - Strategic cooperation: Signed a strategic cooperation agreement with Shanghai Oriental Hospital to establish "Shanghai Oriental Hospital Nantong Ruici Hospital," aiming to export top medical technology, management models, and brand influence[57](index=57&type=chunk) Nantong Ruici Hospital Service Visits | Service Type | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Outpatient service visits | 142,777 | 161,604 | -11.65% | | Inpatient service visits | 12,456 | 15,760 | -20.96% | - Ruici Meidi Nursing Home: As of June 30, 2025, **89 elderly residents** were admitted, with an occupancy rate of **84%**[58](index=58&type=chunk) [Physical Examination Business](index=29&type=section&id=Physical%20Examination%20Business) The Group's physical examination business launched a multi-brand strategy, including the high-end "Ruici Club" brand, focusing on key markets and enhancing customer experience and medical quality through satisfaction management and professional development - Multi-brand strategy: Initiated a multi-brand strategy, creating the high-end health check-up brand "Ruici Club" targeting corporate executives, elite white-collar workers, and high-net-worth families[59](index=59&type=chunk) - Market layout: Focusing on key markets in the Yangtze River Delta, Beijing, Greater Bay Area, and Zhejiang, while expanding into new first-tier and second-tier cities[59](index=59&type=chunk) - Number of centers: As of June 30, 2025, the Group operates **86 physical examination centers** nationwide, with **76 already operational**, covering **29 cities**[59](index=59&type=chunk) - Service quality improvement: Deepening the closed-loop satisfaction management mechanism, achieving an improvement rate of **93.13%** ("Ruici Physical Examination" brand) / **95.00%** ("Xingyuanhui" brand)[60](index=60&type=chunk) - Medical quality control: Launching professional capability building projects "Leading Action" and "Assisted Training Action" to establish a quality management and control system and standardized service processes[60](index=60&type=chunk)[61](index=61&type=chunk) [Future Outlook](index=30&type=section&id=Future%20Outlook) Facing an aging population and younger disease trends, the company will deepen hospital performance reform, with Nantong Ruici Hospital aiming for Grade III Class A status, while the physical examination business will pursue a multi-brand strategy, product upgrades, operational optimization, and talent development - Nantong Ruici Hospital goal: Aims to become a Grade III Class A general hospital and one of the three major medical centers in Nantong City[62](index=62&type=chunk) - Hospital development strategy: Plans to establish **2 provincial-level clinical key specialties** and **10 municipal-level clinical key specialties** within the next 5 years, focusing on management system reform and leveraging the strategic cooperation with Shanghai Oriental Hospital[62](index=62&type=chunk) - Physical examination business strategy: Will continue to implement a multi-brand synergistic strategy with "Ruici Physical Examination," "Ruici Club," and "Xingyuanhui," focusing on product iteration and upgrading, and developing post-examination medical services and derivative products[63](index=63&type=chunk) - Operations and talent: Continuously optimize operational management processes to improve capacity utilization; enhance online channel traffic conversion rates; and strengthen talent selection and development to build a reserve of young management cadres[63](index=63&type=chunk) [Financial Review](index=31&type=section&id=Financial%20Review) [Overall Financial Performance](index=31&type=section&id=Overall%20Financial%20Performance) During the reporting period, the Group's revenue decreased by **7.0%** year-on-year to **RMB 1,144.8 million**, primarily due to a decline in integrated hospital business revenue, while physical examination business revenue saw slight growth - Total revenue: The Group's revenue for the reporting period was **RMB 1,144.8 million**, a **7.0%** decrease compared to the same period in 2024[65](index=65&type=chunk) - Integrated hospital business revenue: **RMB 219.7 million**, a **28.7%** decrease from the same period in 2024, mainly due to external competitive pressure[65](index=65&type=chunk) - Physical examination business revenue: **RMB 925.1 million**, a **0.2%** increase from the same period in 2024, primarily driven by revenue growth from the high-end physical examination brand "Xingyuanhui"[66](index=66&type=chunk) [Revenue and Cost Analysis](index=31&type=section&id=Revenue%20and%20Cost%20Analysis) Total revenue decreased by **7.0%** and cost of sales by **11.7%** during the period, with both integrated hospital business revenue and cost of sales declining, while physical examination business cost of sales decreased due to efficiency and cost reduction strategies Revenue by Operating Segment (RMB thousand) | Segment | 2025 | 2024 | Percentage Change | | :--- | :--- | :--- | :--- | | Integrated Hospital Business | 234,004 | 323,966 | (27.8%) | | Physical Examination Business | 925,129 | 922,936 | 0.2% | | Inter-segment | (14,284) | (15,697) | (9.0%) | | **Total** | **1,144,849** | **1,231,205** | **(7.0%)** | Cost of Sales by Operating Segment (RMB thousand) | Segment | 2025 | 2024 | Percentage Change | | :--- | :--- | :--- | :--- | | Integrated Hospital Business | 201,037 | 250,714 | (19.8%) | | Physical Examination Business | 550,506 | 599,901 | (8.2%) | | Inter-segment | (14,284) | (15,697) | (9.0%) | | **Total** | **737,259** | **834,918** | **(11.7%)** | - The cost of sales for the physical examination business decreased by **8.2%**, mainly due to the Group's vigorous implementation of efficiency and cost reduction strategies, effectively controlling cost of sales[68](index=68&type=chunk) [Gross Profit and Operating Expenses](index=33&type=section&id=Gross%20Profit%20and%20Operating%20Expenses) Gross profit increased to **RMB 407.6 million**, with a **3.4 percentage point** rise in gross profit margin to **35.6%** due to efficiency and cost reduction, while distribution and selling expenses, administrative expenses, and other losses increased, and other income primarily came from government grants - Gross profit: Increased from **RMB 396.3 million** in the same period of 2024 to **RMB 407.6 million** in the reporting period[69](index=69&type=chunk) - Gross profit margin: Increased by **3.4 percentage points** from **32.2%** in the same period of 2024 to **35.6%** in the reporting period, primarily due to the Group's continuous promotion of efficiency and cost reduction initiatives[69](index=69&type=chunk) - Distribution and selling expenses: **RMB 134.5 million**, an increase from **RMB 108.6 million** in the same period of 2024, mainly due to increased human resources costs and promotion expenses for the physical examination business[70](index=70&type=chunk) - Administrative expenses: **RMB 116.7 million**, a slight increase from **RMB 111.8 million** in the same period of 2024, mainly due to the increase in the number of physical examination centers[71](index=71&type=chunk) - Other income: **RMB 21.0 million** (2024: **RMB 9.9 million**), primarily from government grants[72](index=72&type=chunk) - Other losses: **RMB 5.9 million** (2024: **RMB 1.9 million**), mainly due to liquidated damages from early termination of a physical examination center lease[73](index=73&type=chunk) - Net finance costs: **RMB 50.1 million** (2024: **RMB 61.0 million**), primarily comprising interest expenses of approximately **RMB 53.2 million** and interest income of **RMB 3.2 million**[74](index=74&type=chunk) - Share of results of investments accounted for using the equity method: Profit of **RMB 0.6 million** (2024: **RMB 0.4 million**), mainly due to operating profit from the joint venture Nantong Meidi[75](index=75&type=chunk) - Income tax expense: **RMB 39.7 million** (2024: **RMB 38.0 million**)[76](index=76&type=chunk) - Profit for the period: **RMB 79.7 million** (2024: **RMB 87.1 million**)[77](index=77&type=chunk) [Other Financial Indicators](index=34&type=section&id=Other%20Financial%20Indicators) This section covers changes and influencing factors for key financial indicators such as Adjusted EBITDA, assets and liabilities, liquidity, capital expenditure, pledged assets, and gearing ratio [Adjusted EBITDA](index=35&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA for the reporting period was **RMB 386.6 million**, a **5.4%** year-on-year decrease, primarily due to lower integrated hospital business revenue, though the adjusted EBITDA margin slightly improved Adjusted EBITDA Calculation (RMB thousand) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period | 79,745 | 87,121 | | Income tax expense | 39,696 | 38,027 | | Net finance costs | 50,086 | 60,966 | | Depreciation and amortization | 211,436 | 216,506 | | Pre-operating expenses and EBITDA loss from trial operations | 5,636 | 6,164 | | **Adjusted EBITDA** | **386,599** | **408,784** | | Adjusted EBITDA margin | 33.8% | 33.2% | - Adjusted EBITDA decreased by **5.4%**, mainly due to a slight decline in profit resulting from lower integrated hospital business revenue[80](index=80&type=chunk) [Assets, Liabilities and Liquidity](index=36&type=section&id=Assets%2C%20Liabilities%20and%20Liquidity) As of June 30, 2025, property and equipment and trade receivables both decreased, net current liabilities reduced, and the company maintained sufficient cash and cash equivalents and available bank facilities - Property and equipment: **RMB 1,435.8 million**, a decrease of **RMB 56.1 million** from December 31, 2024[82](index=82&type=chunk) - Trade receivables: **RMB 244.8 million**, a decrease of **RMB 79.3 million** from December 31, 2024[83](index=83&type=chunk) - Net current liabilities: **RMB 266.2 million**, a decrease from **RMB 323.3 million** as of December 31, 2024, mainly due to a reduction in borrowings at the end of the reporting period[84](index=84&type=chunk) - Cash and cash equivalents: **RMB 1,028.8 million** (December 31, 2024: **RMB 1,109.8 million**)[85](index=85&type=chunk) - Available bank facilities: **RMB 382.2 million** (December 31, 2024: **RMB 163.0 million**)[85](index=85&type=chunk) [Capital Expenditure and Commitments](index=37&type=section&id=Capital%20Expenditure%20and%20Commitments) Capital expenditure for the reporting period was **RMB 175.1 million**, mainly for physical examination center equipment, decoration, and new operating premises leases, with total capital commitments of **RMB 13.4 million** - Capital expenditure: **RMB 175.1 million** (2024: **RMB 321.8 million**), primarily for purchasing medical equipment, decoration, and leasing new operating premises for physical examination centers[88](index=88&type=chunk) - Total capital commitments: **RMB 13.4 million** (December 31, 2024: **RMB 16.9 million**), mainly for renovation of leased properties[88](index=88&type=chunk) [Pledged Assets and Contingent Liabilities](index=37&type=section&id=Pledged%20Assets%20and%20Contingent%20Liabilities) As of June 30, 2025, the Group had **RMB 191.4 million** in assets pledged for borrowings and no significant contingent liabilities - Pledged assets: As of June 30, 2025, assets with a total carrying amount of **RMB 191,378 thousand** were pledged for the Group's borrowings[97](index=97&type=chunk) - Contingent liabilities: As of June 30, 2025, the Group had no significant contingent liabilities[90](index=90&type=chunk) [Gearing Ratio](index=37&type=section&id=Gearing%20Ratio) As of June 30, 2025, the gearing ratio slightly decreased to **46.2%** - Gearing ratio: **46.2%** (December 31, 2024: **46.4%**), calculated as net debt divided by total capital[91](index=91&type=chunk) [Risk Management](index=38&type=section&id=Risk%20Management) The Group primarily faces interest rate risk, foreign currency risk, and credit risk, which are controlled through prudent treasury policies and credit management measures to ensure sufficient liquidity [Cash Flow and Fair Value Interest Rate Risk](index=38&type=section&id=Cash%20Flow%20and%20Fair%20Value%20Interest%20Rate%20Risk) The company primarily faces interest rate risk from bank borrowings and lease liabilities, with **RMB 388.8 million** in floating-rate borrowings, and no hedging was undertaken during the reporting period - Sources of interest rate risk: Primarily from bank borrowings and lease liabilities[92](index=92&type=chunk) - Floating-rate borrowings: As of June 30, 2025, **RMB 388,800,000** of borrowings were at floating rates[92](index=92&type=chunk) - Hedging policy: No hedging was undertaken for cash flow and fair value interest rate risk during the reporting period[92](index=92&type=chunk) [Foreign Currency Risk](index=38&type=section&id=Foreign%20Currency%20Risk) The company had no significant foreign currency risk during the reporting period, with only minor bank deposits denominated in HKD and USD, and currently no foreign exchange hedging policy - Foreign currency risk: The Group had no significant foreign currency risk during the reporting period (except for bank deposits denominated in HKD and USD)[93](index=93&type=chunk) - Hedging policy: The Group currently has no foreign exchange hedging policy[93](index=93&type=chunk) [Credit Risk](index=38&type=section&id=Credit%20Risk) The company's credit risk is low, mainly from cash and cash equivalents and trade and other receivables, managed by assessing counterparty credit records and financial standing - Credit risk concentration: The Group does not have a high concentration of credit risk[94](index=94&type=chunk) - Credit risk management: Policies are in place to ensure that receivables with credit terms are granted to counterparties with sound credit records, and counterparty credit is continuously assessed[95](index=95&type=chunk) - Cash placement: Cash and cash equivalents are placed with major financial institutions that the directors believe have high credit quality[95](index=95&type=chunk) [Liquidity Management](index=39&type=section&id=Liquidity%20Management) The company monitors liquidity needs through rolling forecasts, ensuring sufficient cash for operations and maintaining adequate undrawn borrowing facilities - Liquidity management: The finance department monitors rolling forecasts of liquidity requirements to ensure sufficient cash for operating needs and maintains adequate undrawn borrowing facilities[96](index=96&type=chunk) - Future cash flow needs: Planned to be met by cash flows from operating activities, borrowings from financial institutions, and issuance of debt instruments or capital injections from the Company's shareholders as needed[96](index=96&type=chunk) [Human Resources](index=39&type=section&id=Human%20Resources) As of June 30, 2025, the Group had **8,363 employees**, with a decrease in employee benefit expenses, and provides regular training to enhance employee skills and knowledge - Number of employees: As of June 30, 2025, the Group had **8,363 employees** (December 31, 2024: **8,908 employees**)[98](index=98&type=chunk) - Employee benefit expenses: Approximately **RMB 469 million** (2024: approximately **RMB 502 million**)[98](index=98&type=chunk) - Remuneration policy: Determined based on employees' experience, qualifications, and general market conditions, and set by the Board according to their performance, qualifications, and abilities[98](index=98&type=chunk) - Training: The Company provides regular training to employees to enhance their skills and knowledge[98](index=98&type=chunk) [Interim Dividend](index=39&type=section&id=Interim%20Dividend) The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board has resolved not to declare any interim dividend for the reporting period (six months ended June 30, 2024: HKD 0.045 per share)[99](index=99&type=chunk) [Corporate Governance and Other Information](index=40&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Corporate Governance Code](index=40&type=section&id=Corporate%20Governance%20Code) The company adopted the HKEX Corporate Governance Code, with deviations in directors' legal action insurance and the combined roles of Chairman and CEO, which the Board deems manageable - The Company has adopted the code provisions of the Corporate Governance Code set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[100](index=100&type=chunk) - Deviation from Code Provision C.1.7: No insurance has been purchased for legal actions against directors, but the Board believes the litigation risk faced by directors is controllable[100](index=100&type=chunk) - Deviation from Code Provision C.2.1: Dr. Fang Yixin holds both the Chairman and Chief Executive Officer roles, which the Board believes facilitates the Group's implementation of new business strategies, and the operations of the Board and senior management ensure a balance of power and authority[101](index=101&type=chunk) [Standard Code for Securities Transactions](index=41&type=section&id=Standard%20Code%20for%20Securities%20Transactions) All directors confirmed compliance with the Standard Code for Securities Transactions, and the company is unaware of any non-compliance by senior management - All directors confirmed compliance with the Standard Code during the reporting period[103](index=103&type=chunk) - The Company is not aware of any non-compliance with the Standard Code by any senior management of the Group during the reporting period[103](index=103&type=chunk) [Dealings in Listed Securities](index=41&type=section&id=Dealings%20in%20Listed%20Securities) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[104](index=104&type=chunk) [Review of Financial Information](index=41&type=section&id=Review%20of%20Financial%20Information) The Board's audit committee reviewed the interim condensed consolidated financial information with management and external auditors, who also conducted an independent review - The Board's audit committee has discussed and reviewed the Group's unaudited interim condensed consolidated financial information for the reporting period with management and external auditors[105](index=105&type=chunk) - The Company's external auditor, BDO Limited, has conducted an independent review of the Group's interim condensed consolidated financial information in accordance with Hong Kong Standard on Review Engagements 2410[106](index=106&type=chunk) [Publication of Announcement and Interim Report](index=42&type=section&id=Publication%20of%20Announcement%20and%20Interim%20Report) This announcement and the interim report will be published on the HKEX website and the company's website - This announcement will be published on the HKEX website (www.hkexnews.hk) and the Company's website (www.rich-healthcare.com)[107](index=107&type=chunk) - The Company's interim report for the reporting period, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the above websites in due course[107](index=107&type=chunk) [Acknowledgement and Board Composition](index=42&type=section&id=Acknowledgement%20and%20Board%20Composition) The Board extends gratitude to all colleagues, shareholders, customers, banks, and business contacts for their support, and as of the announcement date, comprises four executive and three independent non-executive directors - The Board expresses its gratitude to all colleagues for their diligence, dedication, loyalty, and integrity, as well as to all shareholders, customers, banks, and other business contacts for their trust and support[108](index=108&type=chunk) - As of the date of this announcement, the Board comprises four executive directors (Dr. Fang Yixin, Dr. Mei Hong, Mr. Fang Haoze, and Ms. Lin Xiaoying) and three independent non-executive directors (Dr. Wang Yong, Mr. Jiang Peixing, and Ms. Huang Siying)[110](index=110&type=chunk)

Group 1 - The board meeting of Ruici Medical (01526.HK) is scheduled for August 28, 2025, to consider and approve the interim results for the six months ending June 30, 2025 [1] - The meeting will also discuss the potential declaration of an interim dividend, if applicable [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部份內容而產生或 因依賴該等內容而引致的任何損失承擔任何責任。 RICI HEALTHCARE HOLDINGS LIMITED 方宜新 中國上海，二零二五年八月十三日 （於開曼群島註冊成立的有限公司） 於本公告日期，董事會由四名執行董事，即方宜新醫師、梅紅醫師、方浩澤先生及林曉穎女 士；及三名獨立非執行董事，即王勇博士、姜培興先生及黃斯穎女士組成。 （股份代號：1526） 董事會會議召開日期 瑞慈醫療服務控股有限公司（「本公司」）董事會（「董事會」）謹此宣佈，董事會 會議將於二零二五年八月二十八日（星期四）舉行，藉以（其中包括）考慮及批 准本公司及其附屬公司截至二零二五年六月三十日止六個月之中期業績及其 發佈，以及考慮派付中期股息（如有）。 承董事會命 瑞慈醫療服務控股有限公司 主席 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 瑞慈醫療服務控股有限公司（本公司）（於開曼群島注冊成立的有限公司） 呈交日期: 2025年8月5日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01526 | 說明 | 普通股 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | USD | | 0.0001 USD | | 1,000,000 | | 增加 / 減少 (-) | | | | | | USD | | | | 本月底結存 | | | 10,000,000,000 | USD | | 0.0001 USD | | 1,000,000 ...

Core Viewpoint - The first Boao Global Health Industry Cooperation Conference (HICC) emphasizes the theme of "sharing innovation without boundaries and co-creating a new ecological opportunity," focusing on the international development path of the healthcare industry [1] Group 1: Company Strategy - Ruici Medical's future strategy is driven by "smart healthcare" and "brand going global" as dual engines to transform China's healthcare industry from "following" to "leading" [2] - The company aims to leverage insights from international exchanges to enhance its understanding of advanced policies and concepts in the healthcare sector [2][4] Group 2: International Cooperation and Development - Ruici Medical's internationalization journey began with the founder's global hospital visits, leading to the establishment of a comprehensive health service system covering the entire life cycle [3][4] - The company has formed partnerships with high-level international hospitals, enhancing its service capabilities through academic exchanges and technology cooperation [4][5] Group 3: Market Expansion and Challenges - Ruici Medical is exploring partnerships with competitive healthcare institutions in culturally similar regions, particularly in Southeast Asia, while facing challenges such as cultural differences and varying healthcare demands [5] - The company is considering joint ventures in Singapore to leverage technological and service advantages for market expansion [5] Group 4: Smart Healthcare Initiatives - Ruici Medical has integrated artificial intelligence into its operations, establishing an AI Development Committee to address the significant impacts of AI on the healthcare sector [6] - The company launched the "Technology Ruici" strategy to digitize and automate the entire health check process, collaborating with GE Healthcare and Shanghai Jiao Tong University [6] Group 5: Industry Insights - The newly released "dual-engine" strategy by Ruici Medical addresses key pain points in global healthcare, providing a reference for the transformation of China's healthcare industry from "following" to "leading" [7]

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)