Market Overview - The Hang Seng Index closed at 25,201.76 points, down 1.27% [1] - The Hang Seng Tech Index closed at 5,697.53 points, down 1.47% [1] - The China Enterprises Index closed at 9,020.26 points, down 1.40% [1] - The Red Chip Index closed at 4,273.29 points, down 1.62% [1] Top Gainers - Nongfu Spring rose over 7% to 50.250 HKD [1][2] - NIO-SW increased over 4% to 51.700 HKD [1][2] - Shanghai Fudan and WanGuo Data-SW both rose over 1% [1][2] Top Losers - Beike-W fell over 6% to 47.200 HKD [1][2] - Naixue's Tea and Stone Pharmaceutical Group both dropped over 5% [1][2] - Li Ning, Alibaba Health, and Pop Mart fell over 4% [1][2] - JD Logistics, Zhou Hei Ya, and Mengniu Dairy declined over 3% [1][2] - Other notable declines include Zhou Dafu, Dongfang Zhenxuan, and Haidilao, all down over 2% [1][2]

Company Information The company's governance structure includes a Board of Directors and various committees, with key operational details and listing information provided [Board of Directors](index=5&type=section&id=Board%20of%20Directors) The company's Board of Directors comprises executive, non-executive, and independent non-executive directors, with Mr. Li Dou serving as Chairman and Executive Director - Mr. Li Dou serves as the Chairman and Executive Director of the Board[6](index=6&type=chunk) - Ms. Zang Luoqi has been appointed as an Executive Director[6](index=6&type=chunk) [Committee Composition](index=5&type=section&id=Committee%20Composition) The company has an Audit and Risk Management Committee, a Nomination and Remuneration Committee, and a Sustainability Committee, each chaired by a designated director - The Audit and Risk Management Committee is chaired by Mr. Tang Yunwei[6](index=6&type=chunk) - The Nomination and Remuneration Committee is chaired by Mr. Guo Tianyong[6](index=6&type=chunk) - The Sustainability Committee is chaired by Dr. Zhou Yongjian[6](index=6&type=chunk) [Key Company Information](index=5&type=section&id=Key%20Company%20Information) The company is registered in the Cayman Islands, with its China headquarters in Shanghai and its principal place of business in Hong Kong located in Causeway Bay; its stock code is 1833, listed on May 4, 2018 - The company's stock code is **1833**, listed on **May 4, 2018**[8](index=8&type=chunk) - The auditor is Ernst & Young[6](index=6&type=chunk) - The China headquarters and principal place of business are located at 298 Guoxia Road, Yangpu District, Shanghai[7](index=7&type=chunk) Chairman's Statement The company maintained stable operations in the first half of 2025, achieving strong core business development and significant profitability improvement [Overall Business Performance](index=7&type=section&id=Overall%20Business%20Performance) The company maintained stable operations in the first half of 2025, with strong core business development and significant profitability improvement, driven by deepening medical-insurance synergy, strengthening competitive advantages, and achieving healthy growth - The company maintained **stable overall operations**, with **strong core business development** and **significant profitability improvement**[12](index=12&type=chunk) - Achievements for the period are summarized by three keywords: "deepening synergy, strengthening advantages, and healthy growth"[12](index=12&type=chunk) - Business structure was optimized, gross profit margin increased year-on-year/quarter-on-quarter, and cash flow remained positive[12](index=12&type=chunk) [Deepening Medical-Insurance Synergy, Dual Growth in Core Businesses](index=8&type=section&id=Deepening%20Medical-Insurance%20Synergy%2C%20Dual%20Growth%20in%20Core%20Businesses) The company deepened its medical-insurance synergy model with Ping An Group, facilitating customer acquisition, retention, and value enhancement for F-end (integrated financial payers), while expanding enterprise health management services for B-end (corporate payers), achieving dual growth - The F-end deepened the "medical-insurance synergy" model, assisting insurance companies in customer acquisition, retention, and value enhancement[13](index=13&type=chunk) - The B-end expanded into the enterprise health management sector, building a product system of "commercial insurance + health protection entrustment + medical health services"[13](index=13&type=chunk) B-end Business Growth Data | Metric | Data | YoY Growth | | :--- | :--- | :--- | | B-end paying enterprise clients | Over 3,500 companies | 37.2% | | B-end paying users | Over 3.6 million people | 39.2% | [AI Technology Breakthroughs, Significant Strengthening of Capability Barriers](index=9&type=section&id=AI%20Technology%20Breakthroughs%2C%20Significant%20Strengthening%20of%20Capability%20Barriers) The company continuously invested in AI technology, launching a "7+N+1" medical AI product system and a complex disease MDT consultation assistance platform, enabling AI empowerment across the entire medical process and strengthening core competitive barriers - Launched the "7+N+1" medical AI product system and innovatively introduced a complex disease MDT consultation assistance platform[14](index=14&type=chunk) - AI has empowered full medical business scenarios, helping family doctors and elderly care managers deliver greater value[14](index=14&type=chunk) - Ping An Group's "953" technology system fully supports the company in solidifying its differentiated competitive barriers[14](index=14&type=chunk) [Building Bridges Between Doctors and Patients, Dedicated to Health Protection](index=9&type=section&id=Building%20Bridges%20Between%20Doctors%20and%20Patients%2C%20Dedicated%20to%20Health%20Protection) The company integrated ESG sustainable development concepts into its business, launched the CARE sustainable development strategy, and provided inclusive medical services to enterprises and employees through initiatives like "Yi Lu Jian Xing" to improve health levels - First launched the CARE sustainable development strategy, practicing the philosophy of "technology for good, medical care with warmth"[15](index=15&type=chunk) - The "Yi Lu Jian Xing" initiative reached over **300 enterprises**, covering over **65,000 people**, improving employee health levels[15](index=15&type=chunk) [Future Outlook](index=10&type=section&id=Future%20Outlook) The company will continue to deepen synergy with Ping An Group, aiming to become "China's No. 1 Entry Point for Medical and Health Services" by enhancing F-end and B-end customer service penetration, optimizing its service network, and accelerating AI large model applications to achieve universal health and well-being - Committed to becoming "China's No. 1 Entry Point for Medical and Health Services"[16](index=16&type=chunk) - Continuously deepening medical-insurance synergy, enhancing F-end full-scenario service capabilities, and strengthening customer tiered operations[16](index=16&type=chunk) - Accelerating the application of AI large models in various scenarios, such as complex disease MDT, covering approximately **245 million** individual financial customers of Ping An Group[16](index=16&type=chunk) Management Discussion and Analysis This section provides an in-depth analysis of the company's financial performance, operational highlights, and strategic initiatives for the reporting period [Key Financial Data](index=11&type=section&id=Key%20Financial%20Data) In the first half of 2025, the company's total revenue increased by **19.5%** year-on-year to **RMB 2.502 billion**, net profit attributable to owners increased by **136.8%** to **RMB 134 million**, and adjusted net profit grew by **83.6%**; gross profit margin rose to **33.6%**, and total expenses as a percentage of revenue decreased Key Financial Data for H1 2025 | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 2,502,193 | 2,093,449 | +19.5% | | Cost of revenue | (1,662,484) | (1,419,651) | +17.1% | | Gross profit | 839,709 | 673,798 | +24.6% | | Selling and marketing expenses | (381,020) | (366,722) | +3.9% | | Administrative expenses | (371,947) | (394,613) | -5.7% | | Net profit for the period | 134,908 | 60,629 | +122.5% | | Net profit attributable to owners of the Company | 134,164 | 56,648 | +136.8% | | Adjusted net profit | 164,749 | 89,739 | +83.6% | - F-end and B-end enterprise health business revenue increased by **30.2%** year-on-year, with F-end revenue at **RMB 1.4325 billion** (up **28.5%**) and B-end enterprise health revenue at **RMB 526.8 million** (up **35.2%**)[25](index=25&type=chunk) - Gross profit margin increased to **33.6%** (H1 2024: **32.2%**), and total expenses as a percentage of revenue decreased by **6.3 percentage points** to **30.1%**[25](index=25&type=chunk) [Key Operating Data](index=12&type=section&id=Key%20Operating%20Data) In the first half of 2025, the company's paying user base reached **24 million**, a year-on-year increase of **35.1%**; F-end paying users grew by **34.6%**, B-end paying users by **39.2%**, and B-end paying enterprise clients by **37.2%** Key Operating Data for H1 2025 | Metric | H1 2025 (million people/companies) | H1 2024 (million people/companies) | Change | | :--- | :--- | :--- | :--- | | Paying users | 24.0 | 17.7 | 35.1% | | F-end paying users | 20.0 | 14.8 | 34.6% | | B-end paying users | 3.6 | 2.6 | 39.2% | | B-end paying enterprise clients | Over 3,500 companies | Over 2,500 companies | 37.2% | - F-end paying user growth was primarily driven by deepening medical-insurance synergy and expanding service scenarios[26](index=26&type=chunk) - B-end paying user and enterprise client numbers grew rapidly, mainly due to accelerated development of enterprise health business[26](index=26&type=chunk) [Analysis of Key Business Operations](index=13&type=section&id=Analysis%20of%20Key%20Business%20Operations) As the flagship of Ping An Group's medical and elderly care ecosystem, the company continuously strengthened synergy with the Group, deepened F-end medical-insurance collaboration and B-end enterprise health management, upgraded family doctor and elderly care manager service hubs, and empowered the entire business process with AI technology - Strengthened synergy with Ping An Group, deepening the F-end medical-insurance collaboration model to assist insurance companies in customer acquisition, retention, and value enhancement[27](index=27&type=chunk) - Accelerated expansion of B-end enterprise clients, building a product system of "commercial insurance + health protection entrustment + medical health services"[27](index=27&type=chunk) - Continuously upgraded the two major service hubs of family doctors and elderly care managers, and launched the "7+N+1" medical AI product system[27](index=27&type=chunk) [Payers](index=13&type=section&id=Payers) The company deepened medical-insurance synergy for integrated financial customers (F-end), offering differentiated medical and elderly care services; provided one-stop health management solutions for enterprise customers (B-end) while accelerating customer expansion; and strengthened individual user (C-end) operations, exploring F2C/B2C growth - F-end business revenue was **RMB 1.4325 billion**, a year-on-year increase of **28.5%**; F-end paying users were approximately **20 million**, a year-on-year increase of **34.6%**[31](index=31&type=chunk) - B-end enterprise health business revenue was **RMB 526.8 million**, a year-on-year increase of **35.2%**; B-end paying users exceeded **3.6 million**, a year-on-year increase of **39.2%**[35](index=35&type=chunk) - B-end paying enterprise clients exceeded **3,500**, a year-on-year increase of **37.2%**, with an enterprise renewal rate of approximately **80%**[32](index=32&type=chunk)[35](index=35&type=chunk) [Member Management](index=15&type=section&id=Member%20Management) The company continuously upgraded its family doctor service system, providing differentiated health management solutions, and optimized its elderly care manager service capabilities, covering 85 cities nationwide and leading industry standardization - Family doctor entitlement users exceeded **35 million**, with an average annual usage frequency of **5 times** per person and **100%** proactive service coverage[37](index=37&type=chunk) - Elderly care manager services have covered **85 cities** nationwide, adding **10 new cities** since the end of last year[39](index=39&type=chunk) - Accumulated **5 group standards** in the home-based elderly care sector, leading the healthy and standardized development of the industry[39](index=39&type=chunk) [O2O Medical, Health, and Elderly Care Service Network](index=16&type=section&id=O2O%20Medical%2C%20Health%2C%20and%20Elderly%20Care%20Service%20Network) The company continued to build a broadly covered, high-quality, and cost-effective "four-reach" service network, including upgrading the academician-led online expert team, expanding in-store cooperative hospitals and health service providers, and enriching home and enterprise services - Online services: Upgraded the academician-led expert team, enabling direct audio/video connection with renowned doctors within **3 hours**, and integrated online drug purchase medical insurance payment functions[40](index=40&type=chunk) - In-store services: Partnered with over **4,000 hospitals**, signed over **3,200 expert doctors**, and collaborated with nearly **106,000 health service providers**[40](index=40&type=chunk) - Home services: Partnered with **240,000 pharmacies**, providing home-based elderly care and self-testing services[41](index=41&type=chunk) [Technology Empowerment](index=17&type=section&id=Technology%20Empowerment) The company deepened its AI capabilities, launching the "7+N+1" medical AI product system based on a medical-insurance data closed-loop and the multi-modal technology platform "Ping An Yi Bo Tong® Medical Large Model," significantly enhancing service quality and operational efficiency - Launched the "7+N+1" medical AI product system, including digital avatars of renowned doctors and AI family doctors, covering **8 major specialties**[43](index=43&type=chunk) - AI-assisted consultation accuracy is approximately **98%**, and complex disease MDT treatment plan accuracy is nearly **80%**[44](index=44&type=chunk) - AI helped reduce the average service cost per family doctor customer by approximately **52%** year-on-year, and improved middle-office operational efficiency by approximately **50%** year-on-year[44](index=44&type=chunk) [Long-Term Strategy and Management Outlook](index=18&type=section&id=Long-Term%20Strategy%20and%20Management%20Outlook) The company will continue to deepen synergy with Ping An Group, aiming to become "China's No. 1 Entry Point for Medical and Health Services" by enhancing F-end and B-end customer service capabilities, integrating the "four-reach" service network, and deepening AI technology applications to create long-term value for users, shareholders, and society - Committed to becoming "China's No. 1 Entry Point for Medical and Health Services"[45](index=45&type=chunk) - Continuously deepening medical-insurance synergy, enhancing F-end full-scenario service capabilities, and strengthening customer tiered operations[47](index=47&type=chunk) - Collaborating with Ping An Group to rapidly expand B-end customers, grow the enterprise health business scale, and strengthen online-offline operational conversion[47](index=47&type=chunk) [Segment Revenue and Gross Profit Performance](index=19&type=section&id=Segment%20Revenue%20and%20Gross%20Profit%20Performance) In the first half of 2025, the company's total revenue increased by **19.5%** year-on-year, and total gross profit increased by **24.6%**; elderly care services revenue grew the fastest, up **263.9%** year-on-year, with gross profit margin significantly increasing by **20.7 percentage points** to **37.6%**; medical services revenue grew by **20.2%**, and health services revenue by **7.0%** H1 2025 Segment Revenue and Gross Profit Performance | Segment | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | Revenue YoY Change | 2025 Gross Profit (RMB thousands) | 2024 Gross Profit (RMB thousands) | Gross Profit YoY Change | 2025 Gross Margin | 2024 Gross Margin | Gross Margin Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Medical Services | 1,277,895 | 1,062,743 | +20.2% | 465,938 | 422,236 | +10.4% | 36.5% | 39.7% | -3.2 percentage points | | Health Services | 1,052,123 | 983,392 | +7.0% | 308,953 | 243,573 | +26.8% | 29.4% | 24.8% | +4.6 percentage points | | Elderly Care Services | 172,175 | 47,314 | +263.9% | 64,818 | 7,989 | +711.3% | 37.6% | 16.9% | +20.7 percentage points | | **Total** | **2,502,193** | **2,093,449** | **+19.5%** | **839,709** | **673,798** | **+24.6%** | **33.6%** | **32.2%** | **+1.4 percentage points** | - Elderly care services revenue significantly increased by **263.9%**, primarily due to deepening synergy with Ping An Group's integrated financial business and expansion of home-based elderly care services[54](index=54&type=chunk) - Health services gross profit margin increased by **4.6 percentage points**, mainly due to a year-on-year decrease in the revenue structure of low-profit physical goods businesses[52](index=52&type=chunk) [Selling and Marketing Expenses](index=21&type=section&id=Selling%20and%20Marketing%20Expenses) In the first half of 2025, selling and marketing expenses were **RMB 381 million**, an increase of **3.9%** year-on-year, primarily due to increased sales volume Selling and Marketing Expenses | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Selling and marketing expenses | 381,020 | 366,722 | +3.9% | - The increase in expenses was primarily attributable to the expansion of sales volume[57](index=57&type=chunk) [Administrative Expenses](index=21&type=section&id=Administrative%20Expenses) In the first half of 2025, administrative expenses were **RMB 371.9 million**, a decrease of **5.7%** year-on-year, primarily due to optimized organizational efficiency Administrative Expenses | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Administrative expenses | 371,947 | 394,613 | -5.7% | - The decrease in expenses was primarily attributable to the continuous optimization of organizational efficiency[58](index=58&type=chunk) [Other Income](index=21&type=section&id=Other%20Income) In the first half of 2025, other income was **RMB 16.5 million**, a decrease of **9.9%** year-on-year, mainly affected by fluctuations in short-term bank investment income Other Income | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Other income | 16,468 | 18,284 | -9.9% | - The decrease was primarily attributable to fluctuations in short-term bank investment income[59](index=59&type=chunk) [Other (Losses)/Gains – Net](index=21&type=section&id=Other%20%28Losses%29%2FGains%20%E2%80%93%20Net) In the first half of 2025, other gains net turned from a profit in the prior period to a loss of **RMB 28.3 million**, with the main change being impairment provisions for investments in associates Other (Losses)/Gains – Net | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Other (losses)/gains – net | (28,342) | 27,737 | Not applicable | - The main change was the change in impairment provisions for investments in associates[60](index=60&type=chunk) [Finance Income – Net](index=21&type=section&id=Finance%20Income%20%E2%80%93%20Net) In the first half of 2025, net finance income was **RMB 60 million**, a decrease of **41.4%** year-on-year, primarily due to a reduction in interest income Finance Income – Net | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Finance income – net | 60,033 | 102,436 | -41.4% | - The decrease was primarily attributable to a reduction in the company's interest income[61](index=61&type=chunk) [Net Profit for the Period and Non-IFRS Measure: Adjusted Net Profit](index=22&type=section&id=Net%20Profit%20for%20the%20Period%20and%20Non-IFRS%20Measure%3A%20Adjusted%20Net%20Profit) In the first half of 2025, net profit for the period was **RMB 134.9 million**, and adjusted net profit was **RMB 164.7 million**, representing an **83.6%** year-on-year increase, indicating further improvement in profitability Net Profit and Adjusted Net Profit | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Net profit for the period | 134,908 | 60,629 | | Excluding share-based payments | 5,325 | 29,833 | | Excluding net foreign exchange losses/(gains) | 24,516 | (723) | | Adjusted net profit | 164,749 | 89,739 | - Adjusted net profit increased by **83.6%** year-on-year, reflecting a further improvement in the company's profitability[62](index=62&type=chunk) [Liquidity and Financial Resources](index=23&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the company's total cash and other liquid financial resources amounted to **RMB 2.853 billion**, with total available funds of **RMB 9.2476 billion**, primarily comprising cash, restricted funds, time deposits, and wealth management financial assets Cash and Other Liquid Financial Resources | Currency | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | RMB | 2,359,906 | 1,954,331 | | USD | 470,611 | 60,889 | | HKD | 22,495 | 29,433 | | **Total** | **2,853,012** | **2,044,653** | - Total available funds amounted to **RMB 9.2476 billion**, including cash and cash equivalents, restricted funds, time deposits, and wealth management financial assets[64](index=64&type=chunk) Cash Flow Overview | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash from/(used in) operating activities | 63,557 | (135,007) | | Net cash from investing activities | 4,671,325 | 1,295,072 | | Net cash used in financing activities | (3,924,273) | (18,740) | | Net increase in cash and cash equivalents | 810,609 | 1,141,325 | [Funding Policy](index=24&type=section&id=Funding%20Policy) The company's funds primarily originate from equity, invested in highly liquid, low-risk instruments to generate returns above demand deposit rates while maintaining liquidity - Cash is almost entirely derived from equity funds[66](index=66&type=chunk) - The investment objective is to generate financial returns at a yield higher than demand deposit bank rates and maintain liquidity[66](index=66&type=chunk) [Capital Expenditure](index=24&type=section&id=Capital%20Expenditure) In the first half of 2025, capital expenditure amounted to **RMB 3.582 million**, primarily for the purchase of property, plant and equipment (office and communication equipment) and intangible assets (software) Capital Expenditure | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Purchase of property, plant and equipment, intangible assets and other assets | 3,582 | 10,536 | - Capital expenditure primarily included the purchase of office and communication equipment and software[67](index=67&type=chunk) [Foreign Exchange Risk](index=24&type=section&id=Foreign%20Exchange%20Risk) The company primarily operates in China, with most transactions settled in RMB; foreign exchange risk mainly arises from USD/RMB exchange rate fluctuations, and the company will use financial instruments to manage these fluctuations - Primarily conducts business operations in China, with most transactions settled in RMB[68](index=68&type=chunk) - Foreign exchange risk primarily arises from fluctuations in the USD/RMB exchange rate[68](index=68&type=chunk) - The company will use financial instruments to manage the impact of exchange rate fluctuations[68](index=68&type=chunk) [Pledge of Assets](index=24&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the company had no assets pledged - As of June 30, 2025, the company had no assets pledged[69](index=69&type=chunk) [Provisions](index=24&type=section&id=Provisions) Details regarding provisions can be found in Note 14 to the interim condensed consolidated financial information - For details on provisions, please refer to Note 14 to the interim condensed consolidated financial information[70](index=70&type=chunk) [Dividends](index=24&type=section&id=Dividends) The company proposed a special dividend of **HKD 9.7** per share on November 14, 2024, with an option to receive it in cash or new shares; for the six months ended June 30, 2025, no other dividends were paid or declared apart from this special dividend - A special dividend of **HKD 9.7** per share was proposed on November 14, 2024, with an option to receive it in cash or new shares[71](index=71&type=chunk) - For the six months ended June 30, 2025, no dividends were paid or declared by the company other than the aforementioned special dividend[71](index=71&type=chunk) [Bank Loans and Other Borrowings](index=25&type=section&id=Bank%20Loans%20and%20Other%20Borrowings) As of June 30, 2025, the company had no outstanding borrowings other than a **RMB 10.5 million** fixed-rate loan obtained by its subsidiary Ping An Yingjian from a shareholder; the asset-liability ratio was **25.15%** - The company had no other outstanding borrowings apart from a **RMB 10.5 million** fixed-rate loan obtained by Ping An Yingjian from a shareholder[72](index=72&type=chunk) - As of June 30, 2025, the Group's asset-liability ratio was **25.15%**[72](index=72&type=chunk) [Material Investments Held](index=25&type=section&id=Material%20Investments%20Held) As of June 30, 2025, the company did not hold any material investments representing **5%** or more of the Group's total assets - As of June 30, 2025, the company did not hold any material investments representing **5%** or more of the Group's total assets[73](index=73&type=chunk) [Future Plans for Material Investments and Capital Assets](index=25&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As of June 30, 2025, the company had no future plans for material investments or acquisitions of capital assets - As of June 30, 2025, the company had no future plans for material investments or acquisitions of capital assets[74](index=74&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates, and Joint Ventures](index=25&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%2C%20and%20Joint%20Ventures) For the six months ended June 30, 2025, the company did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the company did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[75](index=75&type=chunk) [Employees and Remuneration Policy](index=25&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had **1,545 employees**, primarily located in China; the company established a "cash remuneration + benefits + long-term incentives" compensation system and provided various training programs, maintaining stable employee relations - As of June 30, 2025, the Group had a total of **1,545 employees**[76](index=76&type=chunk) - A "cash remuneration + benefits + long-term incentives" compensation system was established, with remuneration determined by market conditions, individual performance, qualifications, and experience[76](index=76&type=chunk) - Various internal and external training programs are provided, employee relations are stable, and there have been no significant strikes or other labor disputes[76](index=76&type=chunk) Other Information This section provides details on directors' and major shareholders' interests, employee incentive schemes, and corporate governance matters [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures](index=26&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%2C%20and%20Debentures) As of June 30, 2025, Mr. Li Dou, Mr. Wu Jun, and Ms. Zang Luoqi held long positions in the company's shares, primarily from employee incentive schemes; some non-executive directors also held interests in Ping An Group shares Directors' Long Positions in the Company's Shares | Director Name | Nature of Interest | Number of Shares | Long/Short Position | Approximate Percentage | | :--- | :--- | :--- | :--- | :--- | | Mr. Li Dou | Beneficial owner | 300,000 | Long position | 0.01% | | Mr. Wu Jun | Beneficial owner | 226,520 | Long position | 0.01% | | Ms. Zang Luoqi | Beneficial owner | 188,450 | Long position | 0.00% | - The share interests of Mr. Li Dou, Mr. Wu Jun, and Ms. Zang Luoqi primarily originated from employee incentive schemes[77](index=77&type=chunk) - Non-executive directors such as Mr. Guo Xiaotao, Ms. Cai Fangfang, and Ms. Fu Xin held beneficial owner and long-term service plan related interests in Ping An Group shares[78](index=78&type=chunk)[82](index=82&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=28&type=section&id=Substantial%20Shareholders%27%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, An Xin Co., Ltd. was the company's controlling shareholder, holding **53.71%** of the shares, with its ultimate parent company being Ping An Insurance (Group) Company of China, Ltd Substantial Shareholders' Long Positions in the Company's Shares | Shareholder Name | Nature of Interest | Number of Shares | Long/Short Position | Approximate Percentage | | :--- | :--- | :--- | :--- | :--- | | An Ke Technology Company Limited | Interest in controlled corporation | 1,160,994,737 | Long position | 53.71% | | Shenzhen Ping An Financial Technology Consulting Co., Ltd. | Interest in controlled corporation | 1,160,994,737 | Long position | 53.71% | | Ping An | Beneficial owner | 1,160,994,737 | Long position | 53.71% | | An Xin | Interest in controlled corporation | 1,160,994,737 | Long position | 53.71% | - An Xin Co., Ltd. directly held **53.71%** of the company's shares and was indirectly wholly owned by Ping An Group[83](index=83&type=chunk)[85](index=85&type=chunk) [Employee Incentive Scheme](index=29&type=section&id=Employee%20Incentive%20Scheme) The company has an employee incentive scheme designed to attract and retain talent and promote long-term development; as of June 30, 2025, the total number of unexercised share options was **6,505,478**, representing **0.30%** of the issued share capital - The employee incentive scheme aims to attract and retain talent, promoting the company's long-term sustainable development[86](index=86&type=chunk) - As of June 30, 2025, the total number of unexercised share options was **6,505,478**, representing **0.30%** of the issued share capital[86](index=86&type=chunk)[89](index=89&type=chunk) - The exercise price for EIS share options was **HKD 7.38** per share (weighted average closing price)[91](index=91&type=chunk) [Purchase, Sale, or Redemption of the Company's Listed Securities](index=31&type=section&id=Purchase%2C%20Sale%2C%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor its subsidiaries repurchased, sold, or redeemed any listed securities, and no treasury shares were held - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries repurchased, sold, or redeemed any of the company's listed securities[90](index=90&type=chunk) - As of June 30, 2025, the company did not hold any treasury shares[90](index=90&type=chunk) [Changes in Information of Directors and Chief Executive](index=32&type=section&id=Changes%20in%20Information%20of%20Directors%20and%20Chief%20Executive) During the reporting period, Ms. Fu Xin was appointed as Ping An's Chief Financial Officer from March 2025, Mr. Wu Jun resigned as Executive Director and President on July 10, 2025, and Ms. Zang Luoqi was appointed as Executive Director on the same day - Ms. Fu Xin was appointed as Ping An's Chief Financial Officer from March 2025[95](index=95&type=chunk) - Mr. Wu Jun resigned as the company's Executive Director and President on July 10, 2025[95](index=95&type=chunk) - Ms. Zang Luoqi was appointed as an Executive Director of the company on July 10, 2025[95](index=95&type=chunk) [Audit and Risk Management Committee](index=32&type=section&id=Audit%20and%20Risk%20Management%20Committee) The Audit and Risk Management Committee reviewed the company's unaudited interim financial statements for the six months ended June 30, 2025, and confirmed their compliance with applicable accounting standards - The Audit and Risk Management Committee comprises Mr. Tang Yunwei (Chairman), Mr. Guo Tianyong, and Ms. Cai Fangfang[94](index=94&type=chunk) - The Committee reviewed the interim financial statements and was satisfied that they were prepared in accordance with applicable accounting standards[94](index=94&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=33&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted the Model Code, and all directors confirmed compliance during the reporting period; the company also established written guidelines regulating insider trading - The company adopted the Model Code as the code of conduct for directors' dealings in the company's securities[96](index=96&type=chunk) - All directors confirmed compliance with the Model Code during the reporting period[96](index=96&type=chunk) - Written guidelines were established to regulate dealings by persons who may possess inside information[96](index=96&type=chunk) [Compliance with the Corporate Governance Code](index=33&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) The company confirmed compliance with all applicable provisions of the Corporate Governance Code during the reporting period, except for the combined roles of Chairman and Chief Executive held by Mr. Li Dou; the Board believes this arrangement benefits the company's strategic implementation and execution, effectively safeguarding shareholders' interests - The company complied with all applicable provisions of the Corporate Governance Code, except for the combined roles of Chairman and Chief Executive held by one individual[97](index=97&type=chunk) - The Board believes that Mr. Li Dou's dual role as Chairman and Chief Executive is beneficial for the implementation and execution of the company's strategy and business[97](index=97&type=chunk) - The company established a standardized and stringent Board operation system and rules of procedure to ensure the Chief Executive's proper and effective performance of duties[97](index=97&type=chunk) [Use of Proceeds](index=34&type=section&id=Use%20of%20Proceeds) The net proceeds from the company's listing and placing were used in accordance with previously disclosed plans; on November 14, 2024, the Board resolved to change the planned use of unutilized net proceeds, allocating more funds to working capital and general corporate purposes (including dividend distribution) - Net proceeds from listing were approximately **HKD 8.564 billion**, and net proceeds from placing were approximately **HKD 7.828 billion**[99](index=99&type=chunk)[100](index=100&type=chunk) Revised Planned Use of Net Proceeds | Planned Use of Net Proceeds | Revised Allocation of Net Proceeds (HKD millions) | Amount Used as of June 30, 2025 (HKD millions) | Remaining Net Proceeds as of June 30, 2025 (HKD millions) | Estimated Time of Use for Remaining Net Proceeds | | :--- | :--- | :--- | :--- | :--- | | Business expansion | 120.8 | 120.8 | – | – | | Funding for potential investments, acquisitions, and overseas expansion | 544.9 | – | 544.9 | Before December 31, 2025 | | Further development of the Group's core businesses | 544.9 | 331.4 | 213.5 | Before December 31, 2030 | | Working capital and general corporate purposes (including dividend distribution) | 8,276.1 | 5,168.7 | 3,107.4 | Before December 31, 2025 | - Following the change, more funds (**HKD 8.2761 billion**) were allocated to working capital and general corporate purposes[101](index=101&type=chunk) Interim Financial Information Review Report This section presents the independent review report on the company's interim financial information for the six months ended June 30, 2025 [Introduction](index=35&type=section&id=Introduction) Ernst & Young reviewed the company's interim financial information for the six months ended June 30, 2025, which was prepared in accordance with the Hong Kong Stock Exchange Listing Rules and International Accounting Standard 34 - Ernst & Young reviewed the company's interim financial information for the six months ended June 30, 2025[103](index=103&type=chunk) - The interim financial information was prepared in accordance with the Hong Kong Stock Exchange Listing Rules and International Accounting Standard 34 "Interim Financial Reporting"[103](index=103&type=chunk) [Scope of Review](index=35&type=section&id=Scope%20of%20Review) The review was conducted in accordance with International Standard on Review Engagements 2410, with a scope smaller than an audit, thus no audit opinion is expressed, but it aims to provide reasonable assurance on the interim financial information - The review was conducted in accordance with International Standard on Review Engagements 2410[104](index=104&type=chunk) - The scope of the review is smaller than an audit, therefore no audit opinion is expressed[104](index=104&type=chunk) [Conclusion](index=35&type=section&id=Conclusion) Based on the review, nothing has come to attention that causes the belief that the Group's interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34 - Nothing has come to attention that causes the belief that the Group's interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34[105](index=105&type=chunk) Interim Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the company reported revenue of **RMB 2.502 billion**, net profit of **RMB 134.9 million**, net profit attributable to owners of **RMB 134.2 million**, and basic and diluted earnings per share of **RMB 0.07** Summary of Interim Condensed Consolidated Statement of Profit or Loss | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 2,502,193 | 2,093,449 | | Gross profit | 839,709 | 673,798 | | Profit before tax | 136,260 | 60,652 | | Net profit for the period | 134,908 | 60,629 | | Net profit attributable to owners of the Company | 134,164 | 56,648 | | Basic earnings per share (RMB) | 0.07 | 0.05 | | Diluted earnings per share (RMB) | 0.07 | 0.05 | Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the company's profit for the period was **RMB 134.9 million**, with other comprehensive losses of **RMB 28.764 million** arising from exchange differences on translating foreign operations, resulting in a total comprehensive income for the period of **RMB 106.1 million** Summary of Interim Condensed Consolidated Statement of Comprehensive Income | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the period | 134,908 | 60,629 | | Exchange differences on translating foreign operations | (28,764) | 8,392 | | Other comprehensive (loss)/income for the period | (28,764) | 8,392 | | Total comprehensive income for the period | 106,144 | 69,021 | | Attributable to owners of the Company | 105,400 | 65,040 | | Attributable to non-controlling interests | 744 | 3,981 | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets were **RMB 12.953 billion**, a decrease from **RMB 16.779 billion** at the end of 2024; total current assets were **RMB 9.911 billion**, total current liabilities were **RMB 3.145 billion**, and net current assets were **RMB 6.766 billion** Summary of Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total non-current assets | 3,042,254 | 3,377,280 | | Total current assets | 9,910,934 | 13,402,233 | | **Total assets** | **12,953,188** | **16,779,513** | | Total current liabilities | 3,144,956 | 13,077,014 | | Total non-current liabilities | 113,033 | 122,880 | | **Total equity** | **9,695,199** | **3,579,619** | - Net current assets significantly increased from **RMB 325 million** at the end of 2024 to **RMB 6.766 billion** as of June 30, 2025[113](index=113&type=chunk) - Dividends payable decreased from **RMB 9.891 billion** at the end of 2024 to zero, primarily due to the distribution of special dividends[113](index=113&type=chunk) Interim Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, the company's total equity increased from **RMB 3.5796 billion** on January 1, 2025, to **RMB 9.6952 billion**, primarily influenced by profit for the period, scrip dividend election, and share-based payments Summary of Interim Condensed Consolidated Statement of Changes in Equity | Metric | January 1, 2025 (RMB thousands) | June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | | Total attributable to owners of the Company | 3,589,369 | 9,704,205 | | Non-controlling interests | (9,750) | (9,006) | | **Total equity** | **3,579,619** | **9,695,199** | | Profit for the period (attributable to owners of the Company) | – | 134,164 | | Other comprehensive loss for the period | – | (28,764) | | Scrip dividend election | – | 6,003,741 | | Share-based payments | – | 5,325 | | Exercise of share options | – | 370 | - Total equity significantly increased, primarily due to the increase in share capital and reserves from the scrip dividend election[114](index=114&type=chunk) Interim Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, the company reported net cash inflow from operating activities of **RMB 63.557 million**, net cash inflow from investing activities of **RMB 4.6713 billion**, net cash outflow from financing activities of **RMB 3.9243 billion**, and cash and cash equivalents at period-end of **RMB 2.853 billion** Summary of Interim Condensed Consolidated Statement of Cash Flows | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash from/(used in) operating activities | 63,557 | (135,007) | | Net cash from investing activities | 4,671,325 | 1,295,072 | | Net cash used in financing activities | (3,924,273) | (18,740) | | Net increase in cash and cash equivalents | 810,609 | 1,141,325 | | Cash and cash equivalents at end of period | 2,853,012 | 3,008,655 | - Operating cash flow turned from negative to positive, indicating an improvement in operating conditions[116](index=116&type=chunk) - Net cash inflow from investing activities primarily included proceeds from the recovery of wealth management products and time deposits of **RMB 10.5139 billion**[65](index=65&type=chunk) Notes to the Interim Condensed Consolidated Financial Information This section provides detailed notes to the interim condensed consolidated financial information, covering general information, accounting policies, segment data, revenue, profit before tax, income tax, earnings per share, goodwill, property, plant and equipment, trade receivables, cash and cash equivalents, trade and other payables, provisions, dividends, share capital, related party transactions, fair value of financial instruments, and subsequent events [1 General Information](index=42&type=section&id=1%20General%20Information) Ping An Healthcare and Technology Company Limited was incorporated in the Cayman Islands on November 12, 2014, listed on the Hong Kong Stock Exchange on May 4, 2018, and primarily engages in medical and health services in China; An Xin Co., Ltd. is the controlling shareholder, and Ping An Insurance (Group) Company of China, Ltd. is the ultimate parent company - The company was incorporated in the Cayman Islands on **November 12, 2014**, and listed on the Hong Kong Stock Exchange on **May 4, 2018**[117](index=117&type=chunk)[118](index=118&type=chunk) - Primarily engages in medical and health services in China through mobile platforms[117](index=117&type=chunk) - An Xin Co., Ltd. is the controlling shareholder, and Ping An Insurance (Group) Company of China, Ltd. is the ultimate parent company[118](index=118&type=chunk) [2 Basis of Preparation](index=42&type=section&id=2%20Basis%20of%20Preparation) The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the financial statements for the year ended December 31, 2024 - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[119](index=119&type=chunk) - It should be read in conjunction with the financial statements for the year ended December 31, 2024[119](index=119&type=chunk) [3 Changes in Accounting Policies and Disclosures](index=42&type=section&id=3%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) This period's financial information first adopted the revised International Accounting Standard 21 "Lack of Exchangeability," but due to the convertibility of the Group's transaction currencies, this revision has no impact on the interim condensed consolidated financial information - The Group first adopted the revised International Accounting Standard 21 "Lack of Exchangeability" from January 1, 2025[121](index=121&type=chunk)[122](index=122&type=chunk) - As the currencies involved in the Group's transactions are all convertible, this revision has no impact on the interim condensed consolidated financial information[122](index=122&type=chunk) [4 Operating Segment Information](index=43&type=section&id=4%20Operating%20Segment%20Information) The Group's operating segments include medical services, health services, and elderly care services, with key operating decision-makers assessing performance based on each segment's revenue and gross profit; the vast majority of revenue is derived from external customers in China - The Group's operating segments include medical services, health services, and elderly care services[124](index=124&type=chunk) - Key operating decision-makers assess performance based on the segment revenue and gross profit of each operating segment[123](index=123&type=chunk) - The vast majority of revenue is derived from external customers in China, and most non-current assets are located in China[126](index=126&type=chunk)[127](index=127&type=chunk) [5 Revenue](index=45&type=section&id=5%20Revenue) For the six months ended June 30, 2025, the company's total revenue from customer contracts amounted to **RMB 2.502 billion**; revenue types primarily include sales of services and goods, with recognition occurring both at a point in time and over a period of time Revenue Analysis | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue from contracts with customers | 2,502,193 | 2,093,449 | Disaggregated Revenue Information (H1 2025) | Segment | Sales of Services and Goods (RMB thousands) | Commission Income (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | | Medical Services | 1,212,965 | 64,930 | 1,277,895 | | Health Services | 1,031,956 | 20,167 | 1,052,123 | | Elderly Care Services | 169,152 | 3,023 | 172,175 | | **Total** | **2,414,073** | **88,120** | **2,502,193** | - Revenue recognition primarily occurs at a point in time (**RMB 2.2785 billion**), with a portion recognized over a period of time (**RMB 223.7 million**)[130](index=130&type=chunk) [6 Profit Before Tax](index=46&type=section&id=6%20Profit%20Before%20Tax) For the six months ended June 30, 2025, the company's profit before tax was **RMB 136.3 million**; during this period, an impairment provision of **RMB 40.05 million** was recognized for investments in associates, and financial asset impairment losses amounted to **RMB 30.19 million** Components of Profit Before Tax | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of goods | (824,034) | (708,737) | | Cost of services paid to suppliers | (714,808) | (652,444) | | Impairment provision for investments in associates | (40,050) | – | | Impairment losses on financial assets | (30,190) | (63,576) | | Fair value changes of financial assets at fair value through profit or loss | 63,643 | 80,469 | | Employee benefit expenses (including executive remuneration) | (416,572) | (343,921) | | Net foreign exchange (losses)/gains | (24,516) | 723 | - An impairment provision of **RMB 40.05 million** was recognized for investments in associates during the period, primarily due to adjustments in the financial and business outlook of the associates and changes in market conditions[132](index=132&type=chunk)[133](index=133&type=chunk) - As of June 30, 2025, the Group recognized total impairment provisions of approximately **RMB 63.715 million**[134](index=134&type=chunk) [7 Income Tax Expense](index=47&type=section&id=7%20Income%20Tax%20Expense) For the six months ended June 30, 2025, the company's income tax expense was **RMB 1.352 million**, primarily for PRC corporate income tax; the company had no income tax expense in the Cayman Islands and Hong Kong, and no plans to distribute retained earnings from its PRC subsidiaries, thus no deferred tax liabilities were recognized Income Tax Expense Analysis | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Current income tax – Mainland China | 1,352 | 23 | - The company had no income tax expense in the Cayman Islands and Hong Kong[136](index=136&type=chunk) - There are no plans to require PRC subsidiaries to distribute their retained earnings, thus no deferred tax liabilities related to withholding tax were recognized[137](index=137&type=chunk) [8 Earnings Per Share](index=48&type=section&id=8%20Earnings%20Per%20Share) For the six months ended June 30, 2025, the company's basic and diluted earnings per share were both **RMB 0.07**, an increase from **RMB 0.05** in the prior year Basic Earnings Per Share | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net profit for the period attributable to owners of the Company (RMB thousands) | 134,164 | 56,648 | | Weighted average number of ordinary shares in issue (thousand shares) | 1,988,353 | 1,083,504 | | Basic earnings per share (RMB) | 0.07 | 0.05 | Diluted Earnings Per Share | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net profit for the period attributable to owners of the Company (RMB thousands) | 134,164 | 56,648 | | Weighted average number of ordinary shares for diluted earnings per share (thousand shares) | 1,992,031 | 1,086,689 | | Diluted earnings per share (RMB) | 0.07 | 0.05 | - Stock options were included as dilutive potential ordinary shares in the calculation of diluted earnings per share[138](index=138&type=chunk) [9 Goodwill](index=49&type=section&id=9%20Goodwill) As of June 30, 2025, the company's net carrying amount of goodwill was **RMB 1.6777 billion**, primarily arising from Wanjia Medical and Smart Medical businesses; management found no indications of goodwill impairment Goodwill Components | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Wanjia Medical | 961,644 | 961,644 | | Smart Medical Business | 707,284 | 707,284 | | Jiangxi Ping An Health Pharmacy Co., Ltd. | 5,119 | 5,119 | | Ping An Yingjian | 3,166 | 3,166 | | Shanghai Mengchong Information Technology Co., Ltd. | 479 | 479 | | **Net carrying amount** | **1,677,692** | **1,677,692** | - Management reviewed cash flow forecasts based on business plans and found no indications of goodwill impairment[140](index=140&type=chunk) [10 Property, Plant and Equipment](index=49&type=section&id=10%20Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the company's cost of assets acquired was **RMB 3.211 million**, and the net carrying amount of assets disposed of was **RMB 18,000**; no impairment losses on assets were recognized during the period - The cost of assets acquired was **RMB 3.211 million** (H1 2024: **RMB 10.364 million**)[141](index=141&type=chunk) - The net carrying amount of assets disposed of was **RMB 18,000** (H1 2024: **RMB 2.318 million**)[141](index=141&type=chunk) - No impairment losses on assets were recognized by the Group during the period[142](index=142&type=chunk) [11 Trade Receivables](index=49&type=section&id=11%20Trade%20Receivables) As of June 30, 2025, the company's total trade receivables amounted to **RMB 1.3609 billion**, with impairment provisions of **RMB 250.7 million**, resulting in a net carrying amount of **RMB 1.1102 billion** Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 871,844 | 936,384 | | 3 to 6 months | 177,024 | 92,910 | | 6 months to 1 year | 94,822 | 131,863 | | 1 to 2 years | 107,859 | 46,050 | | Over 2 years | 109,349 | 116,437 | | **Total** | **1,360,898** | **1,323,644** | | Less: Impairment provision | (250,661) | (216,338) | | **Net carrying amount** | **1,110,237** | **1,107,306** | [12 Cash and Cash Equivalents, Restricted Funds, and Time Deposits](index=50&type=section&id=12%20Cash%20and%20Cash%20Equivalents%2C%20Restricted%20Funds%2C%20and%20Time%20Deposits) As of June 30, 2025, the company's cash and cash equivalents were **RMB 2.853 billion**, restricted funds were **RMB 1.0163 billion** (of which **RMB 1.011 billion** was frozen due to pending litigation), and time deposits were **RMB 1.0996 billion** Cash and Cash Equivalents | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Cash | 124 | 42 | | Bank balances | 773,821 | 891,350 | | Short-term bank deposits with original maturities within three months | 2,007,155 | 1,072,214 | | Other cash equivalents | 71,912 | 81,047 | | **Total** | **2,853,012** | **2,044,653** | - Total restricted funds amounted to **RMB 1.0163 billion**, of which **RMB 1.011 billion** was legally frozen by the court due to pending litigation[146](index=146&type=chunk) Time Deposits | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Time deposits with original maturities over three months maturing within one year | 595,598 | 887,108 | | Time deposits with original maturities over three months maturing after one year | 400,000 | 1,384,818 | | Interest receivable | 104,805 | 127,390 | | Less: Impairment provision for time deposits | (812) | (917) | | **Total** | **1,099,591** | **2,398,399** | [13 Trade and Other Payables](index=52&type=section&id=13%20Trade%20and%20Other%20Payables) As of June 30, 2025, the company's total current trade and other payables amounted to **RMB 1.9863 billion**, and non-current amounts due to related parties were **RMB 49,000**; the ageing of trade payables was primarily within 3 months Trade and Other Payables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 511,187 | 776,893 | | Accrued payroll | 491,629 | 555,219 | | Accrued expenses | 463,461 | 452,946 | | Amounts due to suppliers | 201,279 | 75,884 | | Other taxes payable | 97,841 | 147,632 | | Amounts due to related parties | 74,093 | 71,539 | | Payables related to agency business | 32,672 | 11,200 | | Others | 114,174 | 112,463 | | **Total current liabilities** | **1,986,336** | **2,203,776** | | Non-current amounts due to related parties | 49 | 11,498 | - The ageing of trade payables was primarily within 3 months, amounting to **RMB 396.9 million**[150](index=150&type=chunk) [14 Provisions](index=53&type=section&id=14%20Provisions) As of June 30, 2025, the company's litigation provision was **RMB 95 million**, consistent with the end of 2024; this provision is recognized based on the probable losses from pending litigation, and the company believes it is reasonable and sufficient Provisions | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Litigation provision | 95,000 | 95,000 | - This liability is recognized based on the probable losses from pending litigation, and the company believes the provision made is reasonable and sufficient[151](index=151&type=chunk) [15 Dividends](index=53&type=section&id=15%20Dividends) The company proposed a special dividend of **HKD 9.7** per share on November 14, 2024, which was distributed on January 24, 2025; part of it was allotted to An Xin, a subsidiary of Ping An Group, in the form of new shares, increasing Ping An Group's shareholding to **52.74%** - A special dividend of **HKD 9.7** per share was proposed on November 14, 2024, and approved by shareholders on December 4, 2024[152](index=152&type=chunk) - On January 24, 2025, **698,970,587 new shares** were allotted and issued to An Xin, a subsidiary of Ping An Group, increasing Ping An Group's shareholding from **39.41%** to **52.74%**[153](index=153&type=chunk) - The total cash amount distributed for the special dividend was **HKD 4.4716 billion** (approximately **RMB 4.2259 billion**)[153](index=153&type=chunk) [16 Share Capital](index=54&type=section&id=16%20Share%20Capital) As of June 30, 2025, the company's total issued ordinary shares were **2,161,443,720** with a par value of **USD 0.000005** per share, equivalent to **RMB 72.448 million**; the increase in share capital was primarily due to the scrip dividend scheme Share Capital Movement | Item | Number of Shares | USD | RMB Equivalent (RMB) | | :--- | :--- | :--- | :--- | | Ordinary shares as at January 1, 2025 | 1,118,812,900 | 5,594 | 35,067 | | Scrip dividend scheme | 1,042,630,820 | 5,213 | 37,381 | | **Ordinary shares as at June 30, 2025** | **2,161,443,720** | **10,807** | **72,448** | - The increase in share capital was primarily due to the scrip dividend scheme, which involved the issuance of **1,042,630,820 new shares**[154](index=154&type=chunk) [17 Related Party Transactions](index=54&type=section&id=17%20Related%20Party%20Transactions) The company engaged in several significant transactions with various related parties under Ping An Group, including providing products and services, purchasing services, interest on deposits, investment income, and property lease expenses; these transactions were conducted in the normal course of business and on negotiated terms - The company engaged in significant transactions with various related parties under Ping An Group, including Ping An Life, Ping An Property & Casualty, Ping An Health Insurance, and Ping An Bank[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk) Significant Related Party Transactions (H1 2025) | Transaction Type | Related Party | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Provision of products and services | Ping An Life | 390,753 | 213,111 | | | Ping An Property & Casualty | 146,461 | 85,422 | | Purchase of services | Ping An Health Insurance | 62,485 | 29,295 | | | Ping An Pay Technology | 42,451 | 61,895 | | Interest on deposits | Ping An Bank | 10,520 | 14,094 | | Investment income | Ping An Wealth Management | 9,144 | 11,989 | | Property lease expenses paid | Ping An Financial Center | 3,867 | – | - The pricing policy for related party transactions was determined by the relevant contracting parties through mutual negotiation[155](index=155&type=chunk) [18 Fair Value and Fair Value Hierarchy of Financial Instruments](index=60&type=section&id=18%20Fair%20Value%20and%20Fair%20Value%20Hierarchy%20of%20Financial%20Instruments) The company's financial assets primarily include financial assets measured at fair value through profit or loss; fair value measurement is categorized into three levels, and as of June 30, 2025, the company's total financial assets measured at fair value amounted to **RMB 4.2787 billion**, primarily classified as Level 2 - The company's financial assets primarily include financial assets measured at fair value through profit or loss[164](index=164&type=chunk) - Fair value measurement is categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs)[167](index=167&type=chunk) Fair Value Hierarchy of Financial Assets (June 30, 2025) | Item | Level 1 (RMB thousands) | Level 2 (RMB thousands) | Level 3 (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Financial assets at fair value through profit or loss | – | 4,003,556 | 275,161 | 4,278,717 | [19 Events After the Reporting Period](index=62&type=section&id=19%20Events%20After%20the%20Reporting%20Period) There were no significant events after the reporting period from June 30, 2025, to August 19, 2025, when the Board approved the issuance of this interim condensed consolidated financial information - There were no significant events after the reporting period from June 30, 2025, to August 19, 2025[170](index=170&type=chunk) [20 Approval of Financial Information](index=62&type=section&id=20%20Approval%20of%20Financial%20Information) This interim condensed consolidated financial information was approved and authorized for issue by the company's Board of Directors on August 19, 2025 - This interim condensed consolidated financial information was approved and authorized for issue by the company's Board of Directors on August 19, 2025[171](index=171&type=chunk) Definitions This section provides definitions for key terms and terminology used in the interim report to ensure clear understanding of the report's content - Key terms defined include Audit and Risk Management Committee, Board of Directors, the Company, Connected Person, Controlling Shareholder, Corporate Governance Code, Directors, EIS Options, EIS Shares, Employee Incentive Scheme, and An Xin[172](index=172&type=chunk) - Explanations are provided for terms such as Group, Health Insurance, HKD, Hong Kong Share Registrar, Hong Kong, IFRS, Independent Third Party, Le An Xin, Life Insurance, Listing, Listing Date, Listing Rules, and Main Board[173](index=173&type=chunk)[174](index=174&type=chunk) - Definitions are given for terms including Model Code, Operating Entities, Paying Users, Ping An Group, Nomination and Remuneration Committee, O2O, Ping An, Ping An Annuity, Ping An Asset Management, Ping An Health Internet, Ping An Yingjian, Property & Casualty Insurance, SFO, Prospectus, Reporting Period, RMB, Shares, Shareholders, Stock Exchange, Subsidiaries, Substantial Shareholder, USD, and Yingjian Enterprise Management Consulting[175](index=175&type=chunk)[176](index=176&type=chunk)[177](index=177&type=chunk)

Investment Rating - The investment rating for Ping An Good Doctor (1833.HK) is not explicitly stated in the provided documents, but the report indicates a positive outlook based on financial performance and growth prospects [1]. Core Viewpoints - The company reported a revenue of approximately 2.502 billion yuan for H1 2025, representing a year-on-year increase of 19.5%. The adjusted net profit was about 165 million yuan, up 83.6%, while the net profit attributable to shareholders was approximately 134 million yuan, reflecting a 136.8% increase [2][3]. - The revenue growth was driven by deepening collaboration with Ping An Group, with both F-end and B-end revenues growing over 25%. The medical services segment generated 1.278 billion yuan, up 20.2%, while the health services segment saw revenue of 1.052 billion yuan, increasing by 7.0% [3]. - The company is enhancing its AI capabilities and expanding its service network, which includes a significant number of doctors and health service providers. The AI product system includes various applications aimed at improving healthcare delivery [4]. Financial Performance Summary - For 2025, the company is projected to achieve total revenue of approximately 5.543 billion yuan, with a year-on-year growth rate of 15%. The net profit attributable to shareholders is expected to reach 261 million yuan, representing a 220% increase [5][6]. - The gross margin is anticipated to improve, with projections of 33.06% for 2025, up from 31.68% in 2024. The net asset return (ROE) is expected to rise to 6.78% in 2025 [5][6]. - The earnings per share (EPS) is forecasted to increase from 0.08 yuan in 2024 to 0.12 yuan in 2025, with a price-to-earnings (P/E) ratio of 145.21 for 2025 [5][6]. Business Structure and Strategy - The company is focusing on optimizing its business structure, which has led to an increase in gross margins and a decrease in expense ratios. The adjusted net profit margin improved by approximately 2.3 percentage points to 6.6% in H1 2025 [3]. - The company has established a comprehensive service network, including partnerships with over 24,000 pharmacies and collaboration with nearly 3300 health service providers, covering 85 cities [3][4].

Investment Rating - The report maintains a "Buy" rating for Ping An Good Doctor (1833.HK) [4][2] Core Insights - In H1 2025, the company achieved revenue of 2.502 billion RMB, representing a growth of 19.5%, with a gross margin of 33.6%, an increase of 1.4 percentage points [1] - The net profit attributable to shareholders reached 134 million RMB, a significant increase of 137%, with a net profit margin of 5.4% [1] - Adjusted net profit, excluding share-based payments and foreign exchange losses, was 165 million RMB, up 83.6%, with an adjusted net profit margin of 6.6%, an increase of 2.3 percentage points [1] - The company effectively controlled expenses, with sales expenses of 381 million RMB (up 3.9%) and a sales expense ratio of 15.2% (down 2.3 percentage points) [1] - The F-end revenue was 1.432 billion RMB, growing by 28.5%, with a paid user base of 20 million, an increase of 34.6% [1] - The B-end enterprise health revenue was 527 million RMB, up 35.2%, with over 3,500 paid service enterprises, an increase of 37.2% [1] - The elderly care service revenue reached 172 million RMB, with a gross margin of 37.6%, an increase of 20.7 percentage points [1] Financial Forecast - Revenue projections for 2025-2027 are 5.504 billion RMB, 6.276 billion RMB, and 7.074 billion RMB, with year-on-year growth rates of 14.5%, 14.0%, and 12.7% respectively [2] - Expected net profits for the same period are 263 million RMB, 360 million RMB, and 453 million RMB, with growth rates of 223.0%, 36.7%, and 25.9% respectively [2] - The report indicates a significant improvement in profitability metrics, with projected earnings per share (EPS) of 0.12 RMB in 2025, increasing to 0.21 RMB by 2027 [3]

Group 1 - The core viewpoint of the articles highlights the positive impact of the Federal Reserve's dovish stance on the Hong Kong pharmaceutical sector, leading to significant gains in related stocks and ETFs [1] - The Hong Kong pharmaceutical ETF (159718.SZ) has seen a year-to-date increase of nearly 88%, with notable stock performances from companies like Ping An Good Doctor (up 6.10%) and Jintai Holdings (up 5.90%) [1] - The Federal Reserve Chairman Powell's speech at the Jackson Hole conference indicated potential interest rate cuts, which has further boosted investor sentiment towards Chinese assets, particularly in the pharmaceutical sector [1] Group 2 - Recent catalysts for the innovative drug sector include upcoming industry conferences and the release of positive data from key products by companies like Dize and Fuhong Hanlin [2] - The adjustment of the medical insurance catalog and the promotion of commercial insurance policies are also seen as important catalysts for the industry [2] - The Hong Kong pharmaceutical ETF is described as a balanced investment tool that includes not only innovative drugs but also CXO, internet healthcare, and innovative medical devices, making it a convenient option for investors [2]

Core Insights - Ping An Good Doctor has shown significant growth, with revenue reaching 2.5 billion yuan and net profit of 134 million yuan for the first half of 2025, marking year-on-year increases of 19.5% and 136.8% respectively [1] - The company has established itself as a key player in the healthcare and elderly care sectors, focusing on a "medical care + comprehensive finance" strategy, which has positioned it centrally within the Ping An Group [1][3] Business Model and Strategy - The business model of Ping An Good Doctor revolves around two main services: family doctors and home elderly care, addressing the public's needs for medical access and elder care [3] - Unlike competitors that focus on pharmaceutical e-commerce or heavy investments in building elderly care facilities, Ping An Good Doctor has opted for a platform-based approach that integrates quality medical and care resources [5][6] Market Position and Competitive Advantage - The company has built a comprehensive medical ecosystem, establishing partnerships with over 5,000 hospitals and 106,000 health service providers, which enhances its service delivery capabilities [7] - By focusing on preventive care, diagnosis, and rehabilitation, Ping An Good Doctor has differentiated itself from other internet healthcare platforms that primarily rely on drug sales [4][5] Data and AI Integration - Ping An possesses extensive medical data, including 1.46 billion medical consultations and 12 million health check reports, which supports its AI-driven healthcare solutions [19][20] - The company has developed a multi-modal AI model, "Ping An Medical Assistant," which enhances service efficiency and accuracy in various healthcare scenarios [22][23] Financial Performance and Growth Potential - The integration of healthcare services has positively impacted Ping An's insurance business, with new business value in life and health insurance reaching 12.89 billion yuan, a growth rate of 34.9% [12][13] - The company's strategy of combining healthcare with financial services is expected to create a robust entry point for high-value business opportunities, similar to successful models in other industries [15][23]

Core Viewpoint - Citibank's research report indicates that Ping An Good Doctor's management expects the company to achieve double-digit annual compound growth in revenue, with mid-term net profit margins also reaching double-digit growth [1] Group 1: Revenue and Profitability - The improvement in profitability is attributed to supply chain efficiency, centralized procurement, market revenue growth, and the application of artificial intelligence and digital management, which will help control operating expenses [1] - Citibank has raised its revenue and earnings per share forecasts for Ping An Good Doctor for the years 2024 to 2027 [1] Group 2: Target Price and Ratings - The target price for Ping An Good Doctor has been increased from HKD 12 to HKD 20 [1] - Citibank maintains a "Buy" rating and considers it one of its preferred stocks [1] Group 3: M&A Focus - The company will focus on mergers and acquisitions in the healthcare and elderly care sectors [1]

Core Viewpoint - Citigroup's report indicates that Ping An Good Doctor's management expects a double-digit compound annual growth rate in revenue and net profit margin in the medium term [1] Revenue and Profitability - Management anticipates improvements in profitability due to enhanced supply chain efficiency, centralized procurement, increased market revenue, and the application of artificial intelligence and digital management to control operating expenses [1] Mergers and Acquisitions - The company is focusing on targets in the healthcare and elderly care sectors for potential mergers and acquisitions [1] Financial Forecasts - Citigroup has raised its revenue forecasts for Ping An Good Doctor for the years 2023 to 2027 by 3%, 4%, and 5% respectively, and has increased its earnings per share forecasts by 40%, 47%, and 49% respectively [1] Target Price and Rating - The target price for Ping An Good Doctor has been raised from HKD 12 to HKD 20, with a "Buy" rating assigned, positioning the company as one of Citigroup's preferred stocks [1]

Core Viewpoint - Ping An Health Medical Technology Co., Ltd. reported strong mid-term performance for 2025, with total revenue of 2.5 billion yuan, a year-on-year increase of 19.5%, and a net profit of 134 million yuan, up 136.8% from the previous year, marking its best performance in recent years [2][3] Financial Performance - The company achieved a total revenue of 2.5 billion yuan in the first half of 2025, reflecting a 19.5% year-on-year growth [2] - The net profit reached 134 million yuan, showing a significant increase of 136.8% compared to the previous year [2] - The comprehensive financial client (F-end) and enterprise (B-end) health business revenue grew by 30.2% year-on-year [3] - The number of paid users increased by 35.1% year-on-year, with over 3,500 paid enterprise clients and more than 3.6 million B-end paid users [3] Strategic Focus - The CEO emphasized the strategy of "deepening synergy, strengthening advantages, and healthy growth" as key to the company's performance [2] - The company is focusing on refining operations for insurance clients to better match healthcare services with policy rights [3] - The shift in strategy from "comprehensive finance + medical health" to "comprehensive finance + medical care and elderly care" was announced, with a new revenue structure for elderly care services [8] Challenges and Concerns - There are concerns regarding the company's reliance on Ping An Group for customer acquisition, which may limit its independent customer acquisition capabilities [6][7] - The elderly care business saw a revenue increase of 263.9%, but faces challenges such as high service costs and limited payment willingness [2][9] - The company is addressing the balance between standardized services and the diverse needs of the elderly population [9] Technological Integration - AI technology is seen as a significant driver for cost reduction and efficiency improvement, with AI-assisted service costs decreasing by approximately 52% [10] - The company launched a comprehensive AI medical product matrix to provide various health services, although AI's role is currently more supportive than revenue-generating [10][11] - The accuracy of AI in consultation is about 98%, while in complex disease treatment plans, it is around 80% [9][10]

Core Viewpoint - Ping An Health's mid-term performance for 2025 shows significant growth, with total revenue reaching 2.5 billion yuan, a year-on-year increase of 19.5%, and a net profit of 134 million yuan, up 136.8% from the previous year, marking its best performance in recent years [1][2] Financial Performance - Total revenue for Ping An Health in the first half of 2025 was 2.5 billion yuan, reflecting a 19.5% year-on-year growth [1] - The net profit attributable to shareholders was 134 million yuan, representing a 136.8% increase year-on-year [1] - The company achieved a total revenue of 4.81 billion yuan in 2024, with F-end and B-end business revenues growing by 17.2% [6] Business Strategy - The company emphasizes "deepening synergy, strengthening advantages, and healthy growth" as key strategies for its operations [1] - Ping An Health's business model integrates insurance and healthcare services, focusing on enhancing service quality for existing clients while exploring new customer acquisition [4][5] - The company has expanded its service network to cover various channels, including online, in-store, at-home, and corporate services, establishing partnerships with over 4,000 hospitals and 24,000 pharmacies [6] Customer Base and Market Expansion - The number of paid users in the F-end and B-end segments increased by 35.1% year-on-year, with over 3,500 paid corporate clients and more than 3.6 million B-end users [2][4] - Ping An Health's home care service user base grew by 83%, covering 85 cities [7] Challenges and Concerns - Despite high growth, there are concerns regarding the company's reliance on Ping An Group for customer acquisition, which may limit its independent customer acquisition capabilities [4][5] - The home care business faces challenges such as high service costs, limited payment willingness, and the difficulty of standardization in services [7] Technological Integration - AI technology is seen as a key driver for cost reduction and efficiency improvement, with AI-assisted services reducing average service costs by approximately 52% [8] - The company has launched a comprehensive AI medical product matrix to enhance service offerings, although AI's role remains primarily supportive at this stage [7][8] Future Outlook - The company aims to transform its technological advantages into sustainable revenue growth, addressing the need for independent customer acquisition and overcoming industry-wide profitability challenges [9]