香港联交所最新资料显示，8月26日，执行董事董阳增持锦欣生殖(01951)277.55万股，每股作价3.2港 元，总金额为888.16万港元。增持后最新持股数目约为1287.33万股，最新持股比例为0.47%。 ...

智通财经APP获悉，香港联交所最新资料显示，8月26日，执行董事董阳增持锦欣生殖(01951)277.55万 股，每股作价3.2港元，总金额为888.16万港元。增持后最新持股数目约为1287.33万股，最新持股比例 为0.47%。 ...

Group 1: Market Overview - The Hang Seng Index fell by 0.22%, down 56 points, closing at 25,773 points, while the Hang Seng Tech Index rose by 0.27% [1] - The early trading volume in the Hong Kong stock market reached 133.9 billion HKD [1] Group 2: Company Performances - Pop Mart (09992) surged by 2.88%, with new products selling out instantly and continued high growth in H1 performance [1] - China Duty Free Group (01880) soared over 5% following the opening of its first city duty-free store in Guangzhou, with multiple city stores entering the cultivation phase [1] - Genscript Biotech (01672) increased by 4.7%, as the company raised funds to enhance its weight loss drug development, with Citigroup suggesting attention on the upcoming ASC30 Phase II data [1] - China Gold International (02099) rose by 6.8%, reaching a new high, with core product output exceeding half of the annual guidance and significant expansion potential at the Jiamar mine [1] - Meitu (01357) saw an early gain of over 7%, officially entering the MSCI China Index, with Morgan Stanley optimistic about the company's long-term growth potential [1] - Innovent Biologics (02696) increased by 5.68% post-earnings, with ongoing internationalization strategy and overseas product profits more than doubling in H1 [1] - Angelalign Technology (06699) rose over 7%, with H1 net profit increasing by over 360%, and declared a special interim dividend of 0.46 HKD [1] - Oriental Selection (01797) fell over 7%, with annual net profit declining by 99.67%, while Goldman Sachs maintained a "sell" rating [1][2] Group 3: Financial Results - Kintor Pharmaceutical (01951) dropped by 5.97% post-earnings, reporting a loss of 1.04 billion CNY in H1, compared to a profit in the same period last year [2]

Core Viewpoint - Jinxin Fertility Group experienced a significant decline in stock price, reflecting challenges in its financial performance and market position [1][2]. Company Overview - Jinxin Fertility Group is a leading assisted reproductive services provider in China and the U.S., operating multiple hospitals and medical centers [1]. - The company ranked third in the Chinese assisted reproductive services market in 2018, conducting 20,958 in vitro fertilization cycles, with a market share of approximately 3.1%, and ranked first among non-state-owned institutions [1]. Financial Performance - For the mid-year report of 2025, Jinxin Fertility reported total revenue of 1.289 billion RMB and a net profit of -1.04 billion RMB [2]. - The company's profit attributable to shareholders for the fiscal year 2025 decreased by 648.24% year-on-year, resulting in a basic earnings per share of -0.39 RMB [2].

Core Viewpoint - Jinxin Fertility (01951.HK) reported a significant decline in revenue and a shift from profit to loss for the six months ending June 30, 2025, indicating potential challenges in its business operations [1] Financial Performance - Revenue for the period was approximately 1.289 billion RMB, representing a year-on-year decrease of 10.7% [1] - The company recorded a loss attributable to owners of approximately 1.04 billion RMB, compared to a profit of about 190 million RMB in the previous year [1] - Basic loss per share was reported at 0.39 RMB [1] - The company did not declare an interim dividend [1]

Core Viewpoint - Jinxin Fertility (01951) reported a significant decline in financial performance, with a revenue drop of 10.75% year-on-year and a shift from profit to loss for shareholders, indicating challenges in the fertility services market in China [1] Financial Performance - Revenue for the six months ending June 30, 2025, was 1.289 billion RMB, down 10.75% year-on-year [1] - Shareholder loss amounted to 1.04 billion RMB, compared to a profit of 190 million RMB in the same period last year, marking a significant turnaround [1] Contributing Factors - A decrease of approximately 8.3% in OPU cycles contributed to the revenue decline [1] - The proportion of IUI patients among ARS patients increased by about 10.04%, with IUI typically costing 80% to 85% less than IVF, impacting overall revenue [1] - Average single-cycle prices fell by 7% to 8% due to adjustments in national medical insurance [1] - A 24% decline in traditional childbirth volumes, driven by lower fertility willingness in China, led to reduced obstetric and related revenues [1] - The company has initiated new departments and businesses, which have contributed to revenue in those areas [1]

锦欣生殖(01951.HK)公布截至2025年6月30日的中期业绩，公司中期收益为12.89亿元人民币，同比下降 10.75%。股东应占亏损10.4亿元人民币，去年同期为溢利1.9亿元人民币。每股基本亏损0.39元人民币。 自2024年开展第三代试管婴儿以来，已服务超1500例患者。 收益减少的主要原因包括：OPU周期下降，IUI周期患者比例增加，国家医保调整导致平均单周期价格 下降，以及传统分娩量下降24%导致的产科收入减少。成都业务的取卵周期数同比减少6.1%，主要由于 初诊患者减少和IUI周期比例大幅增加。 ...

Group 1 - The company reported a revenue of 1.289 billion RMB for the six months ending June 30, 2025, representing a year-on-year decrease of 10.75% [1] - The company experienced a shareholder loss of 1.04 billion RMB, compared to a profit of 190 million RMB in the same period last year, indicating a significant shift from profit to loss [1] - The basic loss per share was reported at 0.39 RMB [1] Group 2 - The decline in revenue was primarily attributed to a decrease in OPU cycles by approximately 8.3%, an increase in the proportion of IUI patients by about 10.04%, and a reduction in average single-cycle prices by 7% to 8% due to national healthcare adjustments [1] - The traditional delivery volume decreased by approximately 24% due to lower fertility intentions in China, leading to a reduction in obstetric and related revenues [1] - The number of egg retrieval cycles in Chengdu decreased by 6.1% from 7,571 to 7,111, mainly due to a reduction in the number of first-time patients and a significant increase in the proportion of IUI cycles [1] Group 3 - Since the launch of third-generation IVF services in 2024, the company has served over 1,500 patients [2] - The company has introduced prenatal diagnosis and genetic counseling services to support women who conceive through IVF, enhancing the safety of pregnancies [2] - The company has developed an integrated model for IVF and maternity care, leveraging over 70 years of experience in women's and children's healthcare, with a VIP penetration rate of approximately 20.8% at the Sichuan Jinxin Xinan Hospital [2]

Group 1 - The company reported a revenue of 1.289 billion RMB for the six months ending June 30, 2025, representing a year-on-year decrease of 10.75% [1] - The company experienced a shareholder loss of 1.04 billion RMB, compared to a profit of 190 million RMB in the same period last year, indicating a significant shift from profit to loss [1] - The basic loss per share was reported at 0.39 RMB [1] Group 2 - The decline in revenue was primarily attributed to a decrease in OPU cycles by approximately 8.3%, an increase in the proportion of IUI patients by about 10.04%, and a reduction in average single-cycle prices by 7% to 8% due to national healthcare adjustments [1] - The traditional delivery volume decreased by about 24% due to lower fertility intentions in China, leading to a reduction in obstetric and related revenues [1] - The number of egg retrieval cycles in Chengdu decreased by 6.1% from 7,571 to 7,111, mainly due to a reduction in new patient numbers and a significant increase in IUI cycle proportions [1] Group 3 - Since the launch of third-generation IVF services in 2024, the company has served over 1,500 patients [2] - The company has introduced prenatal diagnosis and genetic counseling services to support women who conceive through IVF, enhancing the health of newborns [2] - The company has developed an integrated model for IVF and maternity care, leveraging over 70 years of experience in women's and children's healthcare, with a VIP penetration rate of approximately 20.8% at the Sichuan Jinxin Xinan Hospital [2]

[Financial Summary](index=1&type=section&id=Financial%20Summary) The group experienced a significant decline in revenue, net profit, and adjusted EBITDA for the six months ended June 30, 2025, turning from profit to loss Financial Summary for the Six Months Ended June 30, 2025 | Metric | For the Six Months Ended June 30, 2025 (RMB million) | For the Six Months Ended June 30, 2024 (RMB million) | Year-over-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,288.6 | 1,443.8 | -10.7% | | Net Loss/Net Profit | (1,044.1) | 190.3 | Turned from profit to loss | | Loss/Profit Attributable to Owners | (1,039.9) | 189.7 | Turned from profit to loss | | Non-IFRS Adjusted Net Profit | 82.3 | 259.6 | -68.3% | | Non-IFRS EBITDA (Negative) | (938.2) | 380.9 | Turned from positive to negative | | Non-IFRS Adjusted EBITDA | 224.7 | 418.1 | -46.3% | | Basic Loss/Earnings Per Share | (0.39) | 0.07 | Turned from profit to loss | | Non-IFRS Adjusted Basic Earnings Per Share | 0.03 | - | - | - The Board recommended no interim dividend for the six months ended June 30, 2025 (2024: nil)[5](index=5&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the group's condensed consolidated financial performance, position, equity changes, and cash flows for the reporting period [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the group turned from net profit to net loss, primarily due to decreased revenue, significantly increased other expenses, and substantial impairment losses on goodwill and intangible assets Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Metric | For the Six Months Ended June 30, 2025 (RMB thousand) | For the Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 1,288,587 | 1,443,756 | | Cost of revenue | (897,178) | (860,740) | | Gross profit | 391,409 | 583,016 | | Other income | 12,788 | 26,529 | | Other expenses | (52,455) | (577) | | Impairment loss on goodwill, licenses, etc. | (992,579) | – | | (Loss) profit before tax | (1,088,500) | 265,756 | | (Loss) profit for the period | (1,044,120) | 190,313 | | (Loss) profit for the period attributable to owners of the Company | (1,039,916) | 189,682 | | Basic (loss) earnings per share (RMB) | (0.39) | 0.07 | [Condensed Consolidated Statement of Financial Position](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the group's total assets and net assets decreased, primarily due to goodwill and intangible asset impairment, while net current liabilities improved Condensed Consolidated Statement of Financial Position (Summary) | Metric | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current assets | 12,819,227 | 13,891,865 | | Current assets | 1,190,198 | 1,089,929 | | Current liabilities | 1,338,051 | 2,119,451 | | Net current liabilities | (147,853) | (1,029,522) | | Non-current liabilities | 3,417,449 | 2,508,156 | | Net assets | 9,253,925 | 10,354,187 | | Total equity | 9,253,925 | 10,354,187 | - Goodwill decreased from **RMB 3,506,618 thousand** as of December 31, 2024, to **RMB 2,873,675 thousand** as of June 30, 2025, reflecting impairment impact[12](index=12&type=chunk) - Bank borrowings (current liabilities) significantly decreased from **RMB 1,277,537 thousand** as of December 31, 2024, to **RMB 464,009 thousand** as of June 30, 2025, while non-current bank borrowings substantially increased[13](index=13&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity attributable to owners of the Company significantly decreased due to loss for the period and other comprehensive expenses Condensed Consolidated Statement of Changes in Equity (Summary) | Metric | As of January 1, 2025 (RMB thousand) | Loss for the period (RMB thousand) | Other comprehensive expenses for the period (RMB thousand) | As of June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Subtotal equity attributable to owners of the Company | 10,274,419 | (1,039,916) | (61,692) | 9,188,012 | | Non-controlling interests | 79,768 | (4,204) | (526) | 65,913 | | Total equity | 10,354,187 | (1,044,120) | (62,218) | 9,253,925 | - Equity-settled share-based payments recognized during the period amounted to **RMB 15,201 thousand**[14](index=14&type=chunk) - In the first half of 2024, the Company repurchased **5,000,000 shares** for a total of **RMB 12,644,000** to satisfy awards under the restricted share unit scheme[16](index=16&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the group's net cash from operating activities decreased, investment activities shifted from net inflow to net outflow, but financing cash outflows significantly reduced, leading to a net increase in cash and cash equivalents Condensed Consolidated Statement of Cash Flows (Summary) | Metric | For the Six Months Ended June 30, 2025 (RMB thousand) | For the Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash from operating activities | 267,958 | 383,827 | | Net cash (used in) from investing activities | (141,294) | 41 | | Net cash used in financing activities | (17,008) | (380,126) | | Net increase in cash and cash equivalents | 109,656 | 3,742 | | Bank balances and cash at end of period | 679,650 | 517,321 | - Net cash from operating activities decreased by **30.2%** year-over-year, primarily due to changes in working capital and increased taxes paid[18](index=18&type=chunk) - Cash outflow from investing activities was mainly impacted by the purchase of property, plant and equipment (**RMB 124,660 thousand**) and other financial assets at fair value through profit or loss (**RMB 40,000 thousand**)[18](index=18&type=chunk) - Cash outflow from financing activities significantly decreased, mainly due to new bank borrowings (**RMB 1,695,513 thousand**) offsetting the repayment of bank borrowings (**RMB 1,604,545 thousand**)[20](index=20&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes on the group's accounting policies, financial performance, and position, including segment information, expenses, and asset impairments [1. General Information and Basis of Presentation](index=12&type=section&id=1.%20General%20Information%20and%20Basis%20of%20Presentation) The group, incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, primarily engages in assisted reproductive services, management services, other medical services, obstetric medical services, and sales of consumables and equipment, with financial statements presented in RMB under IFRS and Listing Rules - The Company was incorporated in the Cayman Islands on May 3, 2018, and listed on the Hong Kong Stock Exchange on June 25, 2019[21](index=21&type=chunk) - Principal activities include assisted reproductive services, management services, other medical services (gynecology and pediatrics), obstetric medical services, and sales of consumables and equipment[21](index=21&type=chunk) [Going Concern Assessment](index=12&type=section&id=Going%20Concern%20Assessment) Despite the group's current liabilities exceeding current assets by **RMB 147,853,000** as of June 30, 2025, the Board reasonably expects the group to continue as a going concern based on unused bank facilities and future operating cash flow forecasts - As of June 30, 2025, the group's current liabilities exceeded current assets by **RMB 147,853,000**[23](index=23&type=chunk) - The group has unused bank facilities of approximately **RMB 491,538,000** and has secured additional bank facilities of approximately **RMB 350,000,000**[23](index=23&type=chunk) [2. Accounting Policies](index=13&type=section&id=2.%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, consistent with the accounting policies and methods used for the annual consolidated financial statements for the year ended December 31, 2024, with no significant impact from newly applied revised IFRS during the period - The condensed consolidated financial statements are prepared on a historical cost basis, consistent with prior year accounting policies[25](index=25&type=chunk) - IFRS 21 (Revised) "Lack of Exchangeability" was first applied in this interim period but had no impact on financial position or performance[26](index=26&type=chunk) [3. Revenue and Segment Information](index=13&type=section&id=3.%20Revenue%20and%20Segment%20Information) The group's revenue primarily derives from Greater China and overseas operations, with total revenue of **RMB 1,288,587 thousand** for the six months ended June 30, 2025, a **10.7%** year-over-year decrease, where assisted reproductive and related services remain the main but reduced income source Revenue and Segment Profit (Loss) by Operating and Reportable Segment | Segment | Revenue for the Six Months Ended June 30, 2025 (RMB thousand) | Revenue for the Six Months Ended June 30, 2024 (RMB thousand) | Segment Profit (Loss) for the Six Months Ended June 30, 2025 (RMB thousand) | Segment Profit for the Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Greater China | 985,473 | 1,137,636 | 28,692 | 345,660 | | Overseas | 303,114 | 306,120 | (43,569) | 8,717 | | Consolidated | 1,288,587 | 1,443,756 | (14,877) | 354,377 | Revenue by Major Service Type | Service Type | For the Six Months Ended June 30, 2025 (RMB thousand) | For the Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Assisted Reproductive and Related Services | 690,739 | 778,072 | | Management Services | 252,656 | 287,371 | | Other Medical Services | 205,239 | 201,655 | | Obstetric Medical Services | 98,937 | 116,384 | | Sales of Consumables and Equipment | 41,016 | 60,274 | | Total | 1,288,587 | 1,443,756 | - HRC Medical, a key customer, contributed **RMB 228,331 thousand** in revenue in the first half of 2025, a slight year-over-year decrease[33](index=33&type=chunk) [4. Other Income](index=16&type=section&id=4.%20Other%20Income) The group's other income decreased by **51.7%** from **RMB 26.5 million** in the first half of 2024 to **RMB 12.8 million** in the first half of 2025, primarily due to a significant reduction in government subsidies Other Income Details | Source of Income | For the Six Months Ended June 30, 2025 (RMB thousand) | For the Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank interest income | 3,873 | 3,901 | | Government grants | 1,017 | 14,004 | | Others | 7,898 | 8,037 | | Total | 12,788 | 26,529 | [5. Other Expenses](index=17&type=section&id=5.%20Other%20Expenses) The group's other expenses significantly increased from **RMB 0.6 million** in the first half of 2024 to **RMB 52.5 million** in the first half of 2025, primarily due to a one-off capital injection into Jinjiang District Maternal and Child Health Hospital - A one-off capital injection of **RMB 50,000,000** was made to Jinjiang District Maternal and Child Health Hospital to enhance its capabilities[34](index=34&type=chunk) [6. Net Other Gains and Losses](index=17&type=section&id=6.%20Net%20Other%20Gains%20and%20Losses) The group recorded a net other loss of **RMB 7.8 million** in the first half of 2025, primarily due to increased exchange losses Net Other Gains and Losses Details | Item | For the Six Months Ended June 30, 2025 (RMB thousand) | For the Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Exchange losses | (7,728) | (5,883) | | Total | (7,767) | (3,808) | [7. Expected Credit Loss Impairment Model](index=18&type=section&id=7.%20Expected%20Credit%20Loss%20Impairment%20Model) The group recognized **RMB 99.0 million** in expected credit loss impairment in the first half of 2025, primarily related to refundable deposits and amounts due from related parties Expected Credit Loss Impairment Details | Item | For the Six Months Ended June 30, 2025 (RMB thousand) | For the Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Refundable deposits | 20,000 | – | | Amounts due from related parties | 79,009 | – | | Total | 99,009 | – | - An expected credit loss provision of **RMB 20,000,000** was recognized for a refundable deposit of **RMB 50,000,000**, as part of the amount became unrecoverable due to arbitration results[37](index=37&type=chunk) [8. Finance Costs](index=18&type=section&id=8.%20Finance%20Costs) The group's finance costs increased by **51.2%** from **RMB 28.5 million** in the first half of 2024 to **RMB 43.1 million** in the first half of 2025, primarily due to increased interest on bank borrowings and lease liabilities Finance Costs Details | Item | For the Six Months Ended June 30, 2025 (RMB thousand) | For the Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on bank borrowings | 30,522 | 19,675 | | Interest on lease liabilities | 12,551 | 8,851 | | Total | 43,073 | 28,526 | - Total borrowing costs amounted to **RMB 49,811 thousand**, of which **RMB 19,289 thousand** was capitalized in construction in progress[38](index=38&type=chunk) [9. (Loss) Profit Before Tax](index=19&type=section&id=9.%20(Loss)%20Profit%20Before%20Tax) Loss before tax was primarily impacted by factors such as cost of inventories, share-based payment benefits, and depreciation and amortization (Loss) Profit Before Tax Deductions | Item | For the Six Months Ended June 30, 2025 (RMB thousand) | For the Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories recognized as expense | 344,418 | 385,601 | | Share-based payment benefits | 15,201 | 37,115 | | Amortization of licenses | 22,438 | 22,438 | | Depreciation of property, plant and equipment | 100,500 | 76,831 | | Depreciation of right-of-use assets | 42,061 | 39,551 | [10. Income Tax Expense](index=19&type=section&id=10.%20Income%20Tax%20Expense) The group's income tax expense decreased from **RMB 75.4 million** in the first half of 2024 to a negative **RMB 44.4 million** in the first half of 2025, primarily due to the reversal of deferred tax liabilities related to US intangible asset impairment Income Tax Expense Details | Item | For the Six Months Ended June 30, 2025 (RMB thousand) | For the Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current tax | 36,862 | 70,042 | | Deferred tax | (81,242) | 3,955 | | Total | (44,380) | 75,443 | - The decrease in income tax expense was mainly due to the reversal of deferred tax liabilities of approximately **RMB 89.8 million** related to US intangible asset impairment[108](index=108&type=chunk) - Chinese subsidiaries are subject to a statutory corporate income tax rate of **25%**, with some companies engaged in "Western Encouraged Industries" enjoying a preferential tax rate of **15%**[43](index=43&type=chunk) [11. Dividends](index=20&type=section&id=11.%20Dividends) The Board did not recommend any interim dividend for this interim period; in the first half of 2024, a final dividend of **RMB 150,000,000** for the year ended December 31, 2023, was proposed - For the six months ended June 30, 2025, the Board did not recommend an interim dividend[44](index=44&type=chunk)[129](index=129&type=chunk) - In the first half of 2024, a final cash dividend of **RMB 150,000,000** for the year ended December 31, 2023, was proposed[44](index=44&type=chunk) [12. (Loss) Earnings Per Share](index=21&type=section&id=12.%20(Loss)%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic loss per share attributable to owners of the Company was **RMB 0.39**, compared to earnings per share of **RMB 0.07** in the same period last year (Loss) Earnings Per Share Calculation | Metric | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | (Loss) profit for the period attributable to owners of the Company (RMB thousand) | (1,039,916) | 189,682 | | Weighted average number of shares for basic (loss) earnings per share | 2,678,507,404 | 2,685,475,449 | | Basic (loss) earnings per share (RMB) | (0.39) | 0.07 | | Diluted (loss) earnings per share (RMB) | (0.39) | 0.07 | - Potential ordinary shares from restricted shares were not included in diluted loss per share calculation due to their anti-dilutive effect, as the group incurred a loss[46](index=46&type=chunk) [13. Movements in Property, Plant and Equipment and Right-of-Use Assets](index=21&type=section&id=13.%20Movements%20in%20Property%2C%20Plant%20and%20Equipment%20and%20Right-of-Use%20Assets) During this interim period, the group paid approximately **RMB 124.7 million** for the acquisition of property, plant and equipment and entered into three new lease agreements, recognizing right-of-use assets and lease liabilities of approximately **RMB 114.0 million** - Approximately **RMB 124,660,000** was paid for the acquisition of property, plant and equipment to expand and upgrade fixed assets and hospital premises primarily located in China and the US[47](index=47&type=chunk) - Three new lease agreements were entered into, recognizing right-of-use assets and lease liabilities of approximately **RMB 113,999,000**[47](index=47&type=chunk) [14. Impairment Test on Goodwill and Intangible Assets](index=22&type=section&id=14.%20Impairment%20Test%20on%20Goodwill%20and%20Intangible%20Assets) The group recognized total impairment losses of **RMB 992,579 thousand** on goodwill and intangible assets related to HRC Management Group and Laos operations in the first half of 2025, primarily due to underperforming operating results, policy uncertainties, and business suspension - HRC Management Group's operating results fell short of expectations, and the implementation of California's IVF insurance coverage plan was delayed, leading to the recognition of goodwill and intangible asset impairment of **RMB 952,413,000**[49](index=49&type=chunk) - The suspension of operations in Laos resulted in the recognition of an impairment loss on licenses of **RMB 40,166,000**[50](index=50&type=chunk) - Goodwill of **RMB 631,594,000** related to HRC Management Group was fully impaired[49](index=49&type=chunk) [15. Equity Instruments at Fair Value Through Other Comprehensive Income](index=23&type=section&id=15.%20Equity%20Instruments%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) The group recognized a fair value change loss of **RMB 48.6 million** for equity instruments at fair value through other comprehensive income in the first half of 2025, primarily due to the failed equity investment in Jincheng Hongda - A fair value change loss of **RMB 48,627,000** on equity investment was recognized due to the failed investment in male fertility business by Jinxin Aijian, a wholly-owned subsidiary of Jincheng Hongda[51](index=51&type=chunk) - As of June 30, 2025, the fair value of this equity investment was **RMB 35,676,000** (2024: **RMB 84,303,000**)[51](index=51&type=chunk) [16. Trade and Other Receivables](index=23&type=section&id=16.%20Trade%20and%20Other%20Receivables) The group's trade and other receivables decreased by **6.4%** from **RMB 322.3 million** as of December 31, 2024, to **RMB 301.6 million** as of June 30, 2025 Trade and Other Receivables Details | Item | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 199,330 | 234,406 | | Other receivables and prepayments | 131,515 | 116,992 | | Less: Loans receivable classified as non-current assets | (29,965) | (29,133) | | Total | 301,550 | 322,265 | Trade Receivables Ageing Analysis | Ageing | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 90 days | 148,795 | 208,840 | | 91 to 180 days | 43,047 | 15,405 | | Over 180 days | 7,488 | 10,161 | | Total | 199,330 | 234,406 | [17. Trade and Other Payables](index=25&type=section&id=17.%20Trade%20and%20Other%20Payables) The group's trade and other payables increased by **1.7%** from **RMB 737.8 million** as of December 31, 2024, to **RMB 750.6 million** as of June 30, 2025 Trade and Other Payables Details | Item | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 233,168 | 216,965 | | Other payables | 517,384 | 520,807 | | Total | 750,552 | 737,772 | Trade Payables Ageing Analysis | Ageing | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 90 days | 177,305 | 155,863 | | 91 to 180 days | 25,847 | 27,840 | | 181 to 365 days | 19,425 | 18,840 | | Over 365 days | 10,591 | 14,422 | | Total | 233,168 | 216,965 | [18. Bank Borrowings](index=26&type=section&id=18.%20Bank%20Borrowings) The group's total bank borrowings increased from **RMB 2,270.1 million** as of December 31, 2024, to **RMB 2,367.6 million** as of June 30, 2025, with a significant decrease in borrowings repayable within one year and a substantial increase in long-term borrowings Bank Borrowings Repayment Period Analysis | Repayment Period | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within one year | 464,009 | 1,277,537 | | Over one year but not exceeding two years | 325,792 | 288,327 | | Over two years but not exceeding three years | 1,170,790 | 646,470 | | Over three years | 406,967 | 57,762 | | Total | 2,367,558 | 2,270,096 | - New loans of **RMB 1,695,513,000** were raised during this interim period, and loans of **RMB 1,604,545,000** were repaid[59](index=59&type=chunk) - New borrowings include financing agreements for **USD 75,000,000** and offshore **RMB 550,000,000**, with annual interest rates ranging from **2.15% to 5.9%**[59](index=59&type=chunk)[60](index=60&type=chunk) [Industry and Regulatory Overview](index=28&type=section&id=Industry%20and%20Regulatory%20Overview) This section provides an overview of the industry trends, including declining birth rates and increasing ARS penetration, alongside supportive government policies and medical insurance coverage [Industry Trends](index=28&type=section&id=Industry%20Trends) China's birth rate continuously declined from 2016-2023 but is expected to stabilize and enter an era of older parenthood from 2025-2040; despite falling birth numbers, the increasing number of infertile couples has driven ARS treatment cycles to grow against the trend, with China's ARS penetration still significantly lower than in Europe and the US, indicating huge future growth potential - From 2016 to 2023, China's birth rate plummeted, with births decreasing from approximately **15 million** to **9 million** annually[61](index=61&type=chunk) - China's birth population is projected to stabilize from **2025 to 2040**, entering an era of older parenthood[61](index=61&type=chunk) - China's assisted reproductive penetration rate was approximately **9%** in 2023, significantly lower than Europe (approximately **36%**) and the US (approximately **33%**)[61](index=61&type=chunk) [Regulatory Overview](index=28&type=section&id=Regulatory%20Overview) Since 2021, the Chinese government has introduced a series of pro-natalist policies, including allowing three children, providing birth subsidies, and gradually incorporating assisted reproductive technologies into national medical insurance coverage to address low birth rates and an aging population - At the end of 2024, the national population decreased by **1.39 million** year-over-year, with **9.54 million** births and a birth rate of **6.77‰**[62](index=62&type=chunk) - In July 2021, the Chinese government issued the "Decision on Optimizing Fertility Policies to Promote Long-term Balanced Population Development," allowing couples to have up to **3 children**[63](index=63&type=chunk) - As of March 2025, all **31 provinces/municipalities** and the Xinjiang Production and Construction Corps in mainland China have included assisted reproductive medical services in medical insurance coverage[64](index=64&type=chunk) - The 2025 Government Work Report for the first time proposed establishing a special fund covering the entire "childbirth, rearing, and education" cycle, focusing on promoting the distribution of childcare subsidies[65](index=65&type=chunk) [Business Update](index=31&type=section&id=Business%20Update) This section provides an update on the group's operational data, including institutional numbers and OPU cycles, and reviews the performance of its key regional businesses [Key Operating Data](index=31&type=section&id=Key%20Operating%20Data) As of June 30, 2025, the group's total number of institutions increased to **23**, with oocyte pick-up (OPU) cycles decreasing by **8.3%** year-over-year, yet total medical service revenue remained at a high level Operating Data as of June 30, 2025 | Region | Number of Institutions | OPU Cycles | Medical Service Revenue from Owned Institutions (RMB million) | Medical Service Revenue from IOT/MSA Institutions (RMB million) | Total Medical Service Revenue (RMB million) | | :--- | :--- | :--- | :--- | :--- | :--- | | Chengdu | 3 | 7,111 | 581.3 | 186.2 | 767.5 | | Greater Bay Area | 3 | 2,539 | 205.9 | — | 205.9 | | Kunming and Wuhan | 3 | 2,059 | 131.0 | — | 131.0 | | Overseas | 14 | 2,099 | 76.7 | 328.7 | 405.4 | | Total | 23 | 13,808 | 994.9 | 514.9 | 1,509.8 | Operating Data as of June 30, 2024 | Region | Number of Institutions | OPU Cycles | Medical Service Revenue from Owned Institutions (RMB million) | Medical Service Revenue from IOT/MSA Institutions (RMB million) | Total Medical Service Revenue (RMB million) | | :--- | :--- | :--- | :--- | :--- | :--- | | Chengdu | 3 | 7,571 | 649.1 | 233.6 | 882.7 | | Greater Bay Area | 3 | 3,022 | 241.9 | — | 241.9 | | Kunming and Wuhan | 3 | 2,133 | 130.0 | — | 130.0 | | Overseas | 11 | 2,325 | 75.1 | 316.0 | 391.1 | | Total | 20 | 15,051 | 1,096.1 | 549.6 | 1,645.7 | - The group's consolidated revenue represents management fees from IOT/MSA institutions, approximately **RMB 252.7 million** in the first half of 2025 and **RMB 287.4 million** in the first half of 2024[69](index=69&type=chunk) [Chengdu Operations](index=32&type=section&id=Chengdu%20Operations) Chengdu operations' OPU cycles decreased by **6.1%** year-over-year, mainly due to fewer first-visit patients and a significant increase in IUI cycle proportion; the company actively expands third-generation IVF, prenatal diagnosis, genetic counseling, and full-lifecycle health management, enhancing VIP service penetration - OPU cycles decreased by **6.1%** from **7,571** to **7,111**, with a significant increase in IUI patient numbers[70](index=70&type=chunk) - Third-generation IVF services have served over **1,500 patients**, and an integrated IVF-maternity-pediatric model has been launched[70](index=70&type=chunk)[71](index=71&type=chunk) - The VIP penetration rate at Sichuan Jinxin Xinan Hospital (Bisheng Campus) continuously increased to approximately **20.8%**[71](index=71&type=chunk) [Greater Bay Area Operations](index=33&type=section&id=Greater%20Bay%20Area%20Operations) Greater Bay Area operations' OPU cycles decreased by **16.0%** year-over-year, primarily due to a significant increase in IUI cycle proportion caused by changes in clinical consultation processes; the Shenzhen campus is exploring integrated IVF-maternity care, high-end VIP services, and new technology applications, with plans for further expansion through new hospital construction - OPU cycles decreased by **16.0%** from **3,022** to **2,539**, with a significant increase in IUI patient numbers[72](index=72&type=chunk) - The Shenzhen campus is exploring integrated IVF-maternity care, high-end VIP services, and has added male azoospermia micro-TESE and embryo protein screening technologies[72](index=72&type=chunk) [Wuhan and Kunming Operations](index=34&type=section&id=Wuhan%20and%20Kunming%20Operations) Kunming and Wuhan operations' OPU cycles decreased by **3.5%** year-over-year, primarily due to renovations at Jiuzhou Hospital and Hewanjia Hospital; both regions focus on core assisted reproduction while expanding integrated IVF-obstetrics, new technology applications, and diversified specialized clinics - OPU cycles decreased by **3.5%** from **2,133** to **2,059**, mainly impacted by hospital renovations[74](index=74&type=chunk) - Actively promoting the application of artificial sperm activation, Embryo Glue transfer medium, AI, and time-lapse imaging technologies in assisted reproduction to improve pregnancy rates[74](index=74&type=chunk) - Wuhan Jinxin Hospital's delivery volume increased by **145%**, and it expanded reproductive andrology, gynecology diagnosis and treatment, and traditional Chinese medicine assisted pregnancy services[75](index=75&type=chunk) [HRC Medical (US) Operations](index=35&type=section&id=HRC%20Medical%20(US)%20Operations) HRC Medical's total OPU cycles decreased by **8.9%** year-over-year in the first half, but revenue remained largely flat; international treatment cycles declined due to US-China relations and delayed California IVF insurance legislation; the company continues to attract top physicians, expand into new markets, and optimize internal operational efficiency, but faced profit pressure in the first half - Total OPU cycles decreased by **8.9%** from **2,258** to **2,058**, but revenue remained largely flat[76](index=76&type=chunk) - International treatment cycles declined due to fluctuations in US-China relations and the delayed implementation of California's SB729 bill[76](index=76&type=chunk) - **7 new physicians** are expected to join in 2025, bringing the total number of in-house physicians to **30**, with initial entry into the San Francisco area of Northern California[77](index=77&type=chunk) - Physician expansion, medical team building, and clinic expansion exerted significant pressure on profitability in the first half[77](index=77&type=chunk) [Outlook and Future Strategies](index=36&type=section&id=Outlook%20and%20Future%20Strategies) This section details the group's future strategies, including enhancing operational management, developing consumer medical services, alleviating patient financial burdens, expanding its business network, and investing in talent and ESG initiatives [Replicable Operating Management System](index=37&type=section&id=Replicable%20Operating%20Management%20System) The group has gradually established a specialist-based operating management system, enhancing medical quality and market competitiveness through strengthened R&D of new technologies, personalized diagnosis and treatment, quality control standards, patient services, brand promotion, and talent development - Continuously strengthening the introduction and R&D investment in new technologies and methods, such as introducing "in vitro activation of primordial follicles" technology for the ovarian dysfunction specialized disease group[82](index=82&type=chunk)[83](index=83&type=chunk) - Establishing specialized quality control standards and assessment mechanisms to ensure assisted reproductive success rates are above the industry average[82](index=82&type=chunk) - Providing new insights for complex diseases by conducting clinical research projects, such as "Application of Artificial Intelligence (AI) Quality Control in Obstetric Ultrasound Examinations"[83](index=83&type=chunk) [Focus on Developing Consumer Medical Services with Excellence and Prudence](index=38&type=section&id=Focus%20on%20Developing%20Consumer%20Medical%20Services%20with%20Excellence%20and%20Prudence) The group prudently develops consumer medical services based on medical principles to meet diverse patient needs, including reproductive restoration and anti-aging, insomnia clinics, functional medicine centers, and adolescent health management, aiming to provide preventive, health-preserving, and conditioning services - Opening reproductive restoration and anti-aging clinics to address postpartum women's pelvic floor function repair and reproductive organ plastic surgery needs[85](index=85&type=chunk) - Opening insomnia clinics for postpartum and menopausal women's insomnia issues, employing non-pharmacological treatment plans[85](index=85&type=chunk)[86](index=86&type=chunk) - Opening functional medicine centers to provide lifestyle interventions, nutrient therapy, etc., for individuals preparing for pregnancy, experiencing difficulty conceiving, or with reproductive sub-health[86](index=86&type=chunk) [Alleviating Patient Financial Burden Through Innovative Commercial Insurance, Assisted Pregnancy Funds, and Other Means](index=39&type=section&id=Alleviating%20Patient%20Financial%20Burden%20Through%20Innovative%20Commercial%20Insurance%2C%20Assisted%20Pregnancy%20Funds%2C%20and%20Other%20Means) With assisted reproductive services now covered by medical insurance, the group further innovates by collaborating with insurance and banking institutions to launch a diversified insurance product system, including "IVF with 0 upfront cost and full refund if unsuccessful," and establishing good pregnancy funds and drug fee reductions, effectively lowering patient access barriers and financial pressure - All **31 provinces/municipalities** and the Xinjiang Production and Construction Corps in mainland China have included assisted reproductive medical services in medical insurance coverage[87](index=87&type=chunk) - Collaborating with insurance and banking institutions to launch an innovative and diversified insurance product system, including "IVF with **0 upfront cost** and **full refund if unsuccessful**"[88](index=88&type=chunk) - Launching various forms of support for families with fertility difficulties, such as good pregnancy funds, unsuccessful assisted pregnancy funds, drug fee reductions, and patient subsidies[88](index=88&type=chunk) [Expanding Business Network Through Organic Growth or Acquisitions](index=40&type=section&id=Expanding%20Business%20Network%20Through%20Organic%20Growth%20or%20Acquisitions) The group actively seeks business network expansion opportunities, preferring acquisitions in high-growth markets in China, while HRC Medical in the US will leverage policy benefits and physician resources to capture market share, and consolidate its leading position in Southeast Asia through investment in Morula; concurrently, due to regulatory uncertainties, the group decided to terminate its Laos operations - In China, the preference is to enter high-growth potential provincial capitals and cities with radiating capabilities through acquisitions[89](index=89&type=chunk) - California's SB729 commercial insurance bill, delayed until January 2026, is expected to significantly boost assisted reproductive treatment cycles in California by approximately **3 times**[90](index=90&type=chunk) - In Southeast Asia, the group acquired and subscribed for a **30% equity stake** in Morula, becoming its largest strategic investor, and dispatched expert teams to enhance medical quality[91](index=91&type=chunk) - Due to increasing regulatory uncertainties in the Laos IVF industry, the group decided to gradually terminate the operations of Jinrui Medical Center in the second half of 2025[91](index=91&type=chunk) [Talent Recruitment and Development Plan](index=41&type=section&id=Talent%20Recruitment%20and%20Development%20Plan) The group is committed to recruiting and retaining top medical professionals globally, continuously improving its internal development system, including building a leading expert system, supporting young key talents, collaborating with public hospitals, increasing recruitment of fresh graduates, and implementing a "doctors as partners" mechanism - In China, building a multi-level expert and talent system, including introducing leading experts and supporting young core backbone experts[92](index=92&type=chunk) - Welcoming excellent doctors from public hospitals to collaborate through joining, multi-site practice, consultations, and increasing recruitment and training for medical fresh graduates[93](index=93&type=chunk) - Continuing to implement the "doctors as partners" mechanism, incentivizing employees through share award schemes[93](index=93&type=chunk) - In the US, HRC Management collaborates with the Keck School of Medicine of USC to jointly cultivate IVF specialists[94](index=94&type=chunk) [Environmental, Social and Governance (ESG)](index=42&type=section&id=Environmental%2C%20Social%20and%20Governance%20(ESG)) The group is committed to strengthening ESG initiatives, creating social value by building new assisted reproductive disciplines, conducting scientific research and innovation, developing professional courses to empower the industry, promoting hospital digital transformation, and enhancing medical quality management; concurrently, it actively promotes healthcare accessibility and adheres to green operations - Adhering to the strategic positioning of building new assisted reproductive disciplines, actively promoting new disciplines and conducting scientific research and innovation[95](index=95&type=chunk) - Developing professional courses to empower the growth of industry medical staff, enhancing medical quality and standards[95](index=95&type=chunk) - Actively promoting healthcare accessibility through free and charitable clinics, charitable drug donations, and training for grassroots medical institutions[96](index=96&type=chunk) [Financial Review and Non-IFRS Measures](index=43&type=section&id=Financial%20Review%20and%20Non-IFRS%20Measures) This section provides a detailed financial review, analyzing revenue, costs, and various expenses, and reconciles non-IFRS measures such as adjusted net profit and EBITDA [Revenue](index=43&type=section&id=Revenue) The group's revenue decreased by **10.7%** from **RMB 1,443.8 million** in the first half of 2024 to **RMB 1,288.6 million** in the first half of 2025, primarily due to decreased OPU cycles, increased IUI patient proportion, lower average price per cycle, and reduced traditional delivery volumes - Revenue decreased by **10.7%**, mainly due to a reduction of approximately **RMB 87.3 million** in ARS and related revenue, **RMB 34.7 million** in management services and related revenue, and **RMB 17.4 million** in obstetric and related revenue[97](index=97&type=chunk) - A decrease of approximately **8.3%** in OPU cycles, an increase of approximately **10.04%** in the proportion of IUI patients among ARS patients, and a **7% to 8%** decrease in average price per cycle after national medical insurance adjustments collectively led to reduced ARS revenue[97](index=97&type=chunk) [Cost of Revenue](index=43&type=section&id=Cost%20of%20Revenue) The group's cost of revenue increased by **4.2%** from **RMB 860.7 million** in the first half of 2024 to **RMB 897.2 million** in the first half of 2025, primarily due to the adjustment of amortization period for Wuhan Jinxin Hospital's renovation costs and increased labor and operating costs from HRC Medical's new clinics - Cost of revenue increased by **4.2%**, mainly due to **RMB 21.1 million** in Wuhan Jinxin Hospital's renovation costs recognized in cost of revenue after amortization period adjustment, and increased labor and operating costs from HRC Medical's **4 new clinics**[98](index=98&type=chunk) [Gross Profit](index=44&type=section&id=Gross%20Profit) The group's gross profit decreased by **32.9%** from **RMB 583.0 million** in the first half of 2024 to **RMB 391.4 million** in the first half of 2025, with gross margin declining from **40.4%** to **30.4%** - Gross profit decreased by **32.9%**, with gross margin declining from **40.4%** to **30.4%**[99](index=99&type=chunk) [Other Income](index=44&type=section&id=Other%20Income) The group's other income decreased by **51.7%** from **RMB 26.5 million** in the first half of 2024 to **RMB 12.8 million** in the first half of 2025, primarily due to reduced government subsidies - Other income decreased by **51.7%**, mainly due to a year-over-year reduction in government grants of approximately **RMB 13.0 million**[100](index=100&type=chunk) [Other Expenses](index=44&type=section&id=Other%20Expenses) The group's other expenses significantly increased from **RMB 0.6 million** in the first half of 2024 to **RMB 52.5 million** in the first half of 2025, primarily due to a one-off capital injection into Jinjiang District Maternal and Child Health Hospital - Other expenses increased by approximately **8,650%**, mainly due to a one-off capital injection of **RMB 50 million** to support the upgrade and operational capacity enhancement of Jinjiang District Maternal and Child Health Hospital[101](index=101&type=chunk) [Other Gains and Losses](index=44&type=section&id=Other%20Gains%20and%20Losses) The group recorded a net other loss of **RMB 7.8 million** in the first half of 2025, primarily due to foreign exchange losses incurred - A net other loss of **RMB 7.8 million** was recorded, mainly due to foreign exchange losses (first half of 2024: **RMB 3.8 million**)[102](index=102&type=chunk) [Research and Development Expenses](index=44&type=section&id=Research%20and%20Development%20Expenses) The group's research and development expenses decreased by **17.4%** from **RMB 10.9 million** in the first half of 2024 to **RMB 9.0 million** in the first half of 2025 - Research and development expenses decreased by **17.4%**, primarily including staff costs for the R&D team at Jinxin Medical Innovation Research Center[103](index=103&type=chunk) [Selling and Distribution Expenses](index=44&type=section&id=Selling%20and%20Distribution%20Expenses) The group's selling and distribution expenses decreased by **14.5%** from **RMB 86.3 million** in the first half of 2024 to **RMB 73.8 million** in the first half of 2025, primarily due to reduced revenue and optimized marketing strategies - Selling and distribution expenses decreased by **14.5%**, mainly due to reduced revenue and the group's optimized marketing strategies[105](index=105&type=chunk) [Administrative Expenses](index=45&type=section&id=Administrative%20Expenses) The group's administrative expenses increased by **1.5%** from **RMB 215.7 million** in the first half of 2024 to **RMB 219.0 million** in the first half of 2025 - Administrative expenses increased by **1.5%**, primarily including staff costs (including amortization costs of employee share option schemes), depreciation, and amortization[106](index=106&type=chunk) [Finance Costs](index=45&type=section&id=Finance%20Costs) The group's finance costs increased by **51.2%** from **RMB 28.5 million** in the first half of 2024 to **RMB 43.1 million** in the first half of 2025, primarily due to reduced capitalized interest and increased finance expenses recognized for US property leases under lease accounting standards - Finance costs increased by **51.2%**, mainly due to reduced capitalized interest and increased finance expenses recognized for US property leases under lease accounting standards[107](index=107&type=chunk) [Income Tax Expense](index=45&type=section&id=Income%20Tax%20Expense) The group's income tax expense decreased from **RMB 75.4 million** in the first half of 2024 to a negative **RMB 44.4 million** in the first half of 2025, primarily due to the reversal of deferred tax liabilities related to US intangible asset impairment - Income tax expense decreased to a negative **RMB 44.4 million**, mainly due to the reversal of deferred tax liabilities of approximately **RMB 89.8 million** related to US intangible asset impairment[108](index=108&type=chunk) [Net Profit (Loss)](index=45&type=section&id=Net%20Profit%20(Loss)) The group recorded a net loss of approximately **RMB 1,044.1 million** in the first half of 2025, compared to a net profit of approximately **RMB 190.3 million** in the first half of 2024, primarily impacted by one-off events (such as goodwill impairment, financial asset impairment, one-off capital injection) and decreased operating profit - Turned from a net profit of **RMB 190.3 million** in the first half of 2024 to a net loss of **RMB 1,044.1 million** in the first half of 2025[109](index=109&type=chunk) - Key reasons for the loss include: goodwill and intangible asset impairment related to US and Laos operations, financial asset impairment losses, a one-off capital injection into Jinjiang District Maternal and Child Health Hospital, and depreciation of Wuhan Jinxin Hospital's renovation costs[109](index=109&type=chunk) - The decline in operating profit is attributed to the impact of assisted reproduction being included in China's medical insurance coverage on service mix and pricing, unfavorable factors in China's obstetric industry, and increased expansion expenses for US operations[110](index=110&type=chunk) [Non-IFRS Measures](index=46&type=section&id=Non-IFRS%20Measures) The group's non-IFRS adjusted net profit decreased by **68.3%** from **RMB 259.6 million** in the first half of 2024 to **RMB 82.3 million** in the first half of 2025; non-IFRS adjusted EBITDA decreased by **46.3%** from **RMB 418.1 million** in the first half of 2024 to **RMB 224.7 million** in the first half of 2025 Reconciliation of Non-IFRS Financial Measures | Item | For the Six Months Ended June 30, 2025 (RMB thousand) | For the Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | (Loss) profit for the period | (1,044,120) | 190,313 | | Add: Amortization cost of employee share option scheme | 15,201 | 37,115 | | Add: Amortization and depreciation of medical practice licenses, non-compete agreements, etc. | 32,287 | 32,169 | | Add: Goodwill and intangible asset impairment related to US and Laos operations | 908,847 | – | | Add: Financial asset impairment losses | 99,009 | – | | Add: One-off capital injection into Jinjiang District Maternal and Child Health Hospital | 50,000 | – | | Add: Depreciation of Wuhan Jinxin Hospital renovation costs | 21,074 | – | | Non-IFRS adjusted net (loss) profit | 82,298 | 259,597 | | Non-IFRS (negative) EBITDA | (938,166) | 380,948 | | Non-IFRS adjusted EBITDA | 224,657 | 418,063 | - Non-IFRS adjusted net profit decreased by **68.3%**, and non-IFRS adjusted EBITDA decreased by **46.3%**[111](index=111&type=chunk)[112](index=112&type=chunk) - US operations impairment was due to HRC Medical's underperformance, uncertainties from new young doctors joining and clinic expansion, and the delayed implementation of California's IVF insurance coverage plan[116](index=116&type=chunk) [Inventories](index=48&type=section&id=Inventories) The group's inventories decreased by **9.2%** from **RMB 50.9 million** as of December 31, 2024, to **RMB 46.2 million** as of June 30, 2025, primarily due to improved supply chain and inventory management efficiency - Inventories decreased by **9.2%**, mainly due to improved supply chain and inventory management efficiency[115](index=115&type=chunk) [Trade and Other Receivables](index=48&type=section&id=Trade%20and%20Other%20Receivables) The group's trade and other receivables decreased by **6.4%** from **RMB 322.3 million** as of December 31, 2024, to **RMB 301.6 million** as of June 30, 2025 - Trade and other receivables decreased by **6.4%**[116](index=116&type=chunk) [Trade and Other Payables](index=49&type=section&id=Trade%20and%20Other%20Payables) The group's trade and other payables increased by **1.7%** from **RMB 737.8 million** as of December 31, 2024, to **RMB 750.6 million** as of June 30, 2025 - Trade and other payables increased by **1.7%**[117](index=117&type=chunk) [Other Financial and Corporate Information](index=49&type=section&id=Other%20Financial%20and%20Corporate%20Information) This section covers the group's liquidity, capital sources, significant investments, borrowings, contingent liabilities, risk management, employee information, and corporate governance compliance [Liquidity and Capital Resources](index=49&type=section&id=Liquidity%20and%20Capital%20Resources) The group's business operations and expansion plans require substantial funding, obtained through listing, placings, and bank financing; as of June 30, 2025, the capital structure comprised **33.9%** debt and **66.1%** equity, and the directors believe sufficient resources are available - The group obtained funding through listing, placings, and bank financing, with new loans of approximately **RMB 1,695.5 million** in 2025[118](index=118&type=chunk) - As of June 30, 2025, the capital structure was **33.9%** debt and **66.1%** equity (December 31, 2024: **30.8%** debt and **69.2%** equity)[118](index=118&type=chunk) [Significant Investments, Material Acquisitions and Disposals](index=49&type=section&id=Significant%20Investments%2C%20Material%20Acquisitions%20and%20Disposals) Except for matters disclosed in this report, as of June 30, 2025, the Company held no significant investments and had no material acquisitions or disposals - As of June 30, 2025, the Company held no significant investments and had no material acquisitions or disposals concerning subsidiaries, associates, and joint ventures[119](index=119&type=chunk) [Borrowings](index=49&type=section&id=Borrowings) As of June 30, 2025, the group's bank borrowings amounted to **RMB 2,367.6 million**, with Jinyun Building pledged as collateral for bank loans - As of June 30, 2025, the group's bank borrowings amounted to **RMB 2,367.6 million**[120](index=120&type=chunk) - Jinyun Building was pledged as collateral for equivalent bank loans[121](index=121&type=chunk) [Contingent Liabilities and Guarantees](index=50&type=section&id=Contingent%20Liabilities%20and%20Guarantees) As of June 30, 2025, the group had no material contingent liabilities or guarantees - As of June 30, 2025, the group had no material contingent liabilities or guarantees[122](index=122&type=chunk) [Contractual Obligations](index=50&type=section&id=Contractual%20Obligations) As of June 30, 2025, the group had no contractual obligations that would materially affect its financial position or operating results - As of June 30, 2025, the group had no contractual obligations that would materially affect its financial position or operating results[123](index=123&type=chunk) [Interest-Bearing Debt Ratio](index=50&type=section&id=Interest-Bearing%20Debt%20Ratio) As of June 30, 2025, the group's interest-bearing debt ratio was **16.9%**, an increase from **15.1%** as of December 31, 2024, primarily due to increased bank borrowings - As of June 30, 2025, the group's interest-bearing debt ratio was **16.9%** (December 31, 2024: **15.1%**), with the increase primarily due to increased bank borrowings[124](index=124&type=chunk) [Risk Management](index=50&type=section&id=Risk%20Management) The group faces currency risk and interest rate risk but considers current risks non-material and has not adopted hedging measures; liquidity risk is managed by maintaining sufficient reserves, continuously monitoring cash flows, and matching the maturities of financial assets and liabilities - The group faces currency risk (RMB, HKD, USD transactions) and interest rate risk (floating-rate bank balances) but considers current risks non-material and has not adopted hedging measures[125](index=125&type=chunk)[126](index=126&type=chunk) - Liquidity risk is managed by maintaining sufficient reserves, continuously monitoring cash flows, and matching the maturities of financial assets and liabilities[127](index=127&type=chunk) [Employees and Remuneration Policy](index=51&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the group had **3,365 employees** with staff costs of approximately **RMB 396.7 million**; the group has a 2022 Share Award Scheme and has terminated its share option scheme and pre-IPO restricted share unit scheme - As of June 30, 2025, the group and its network of medical institutions had **3,365 employees**, with **3,037** in China and **328** overseas[128](index=128&type=chunk) - Staff costs (including directors' emoluments) for the six months ended June 30, 2025, were approximately **RMB 396.7 million**, a year-over-year increase of **6.8%**[128](index=128&type=chunk) - The group has a 2022 Share Award Scheme and has terminated its share option scheme and pre-IPO restricted share unit scheme[128](index=128&type=chunk) [Interim Dividend](index=51&type=section&id=Interim%20Dividend) The Board did not recommend an interim dividend for the six months ended June 30, 2025 - The Board did not recommend an interim dividend for the six months ended June 30, 2025 (2024: nil)[129](index=129&type=chunk) [Compliance with Corporate Governance Code](index=52&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company consistently complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules for the six months ended June 30, 2025 - The Company consistently complied with all applicable code provisions of the Corporate Governance Code for the six months ended June 30, 2025[130](index=130&type=chunk) [Compliance with Standard Securities Trading Code](index=52&type=section&id=Compliance%20with%20Standard%20Securities%20Trading%20Code) Following specific inquiries to all Directors, each Director confirmed continuous compliance with the required standards of the Standard Code set out in Appendix C3 to the Listing Rules for the six months ended June 30, 2025 - Each Director confirmed continuous compliance with the required standards of the Standard Code set out in Appendix C3 to the Listing Rules for the six months ended June 30, 2025[131](index=131&type=chunk) [Use of Proceeds from Listing](index=52&type=section&id=Use%20of%20Proceeds%20from%20Listing) The Company's total net proceeds from listing were approximately **HKD 2,808.1 million**; as of June 30, 2025, **HKD 2,770.4 million** had been utilized, with the remaining **HKD 37.7 million** primarily allocated for R&D investments Use of Proceeds from Listing | Planned Use | Percentage of Total Net Proceeds | Actual Use as of June 30, 2025 (HKD million) | Unutilized Net Proceeds (HKD million) | | :--- | :--- | :--- | :--- | | Expansion and upgrade of China network | 25.0% | 702.0 | – | | Potential acquisitions of additional ARS medical institutions in China | 20.0% | 561.6 | – | | Investment in R&D | 10.0% | 243.1 | 37.7 | | Potential acquisitions of ARS service chain suppliers and businesses | 20.0% | 561.6 | – | | Enhancing brand focus and overall ARS awareness | 15.0% | 421.2 | – | | Working capital and general corporate purposes | 10.0% | 280.9 | – | | Total | 100% | 2,770.4 | 37.7 | - The remaining unutilized net proceeds of **HKD 37.7 million** are expected to be used for R&D investments by December 2026[133](index=133&type=chunk) [Use of Proceeds from Placing](index=54&type=section&id=Use%20of%20Proceeds%20from%20Placing) The Company completed a placing in February 2021, with net proceeds of approximately **HKD 1,253.5 million** fully utilized for M&A of ARS institutions in China and overseas, as well as general corporate and working capital purposes Use of Proceeds from Placing | Planned Use | Percentage of Total Net Proceeds | Actual Use as of June 30, 2025 (HKD million) | | :--- | :--- | :--- | | Acquisition of ARS institutions in China | 80.0% | 1,002.8 | | Acquisition of ARS institutions outside China | 15.0% | 188.0 | | General corporate and working capital purposes | 5.0% | 62.7 | | Total | 100% | 1,253.5 | - Net proceeds from the placing of approximately **HKD 1,253.5 million** have been fully utilized[136](index=136&type=chunk) [Use of Proceeds from Top-up Placing](index=55&type=section&id=Use%20of%20Proceeds%20from%20Top-up%20Placing) The Company completed a top-up placing in January 2023, with net proceeds of approximately **HKD 1,161.6 million** fully utilized for the redemption and repayment of convertible bonds, as well as general corporate and working capital purposes Use of Proceeds from Top-up Placing | Planned Use | Percentage of Total Net Proceeds | Actual Use as of June 30, 2025 (HKD million) | | :--- | :--- | :--- | | Redemption and repayment of convertible bonds | 85.0% | 987.96 | | Working capital and general corporate purposes | 15.0% | 174.35 | | Total | 100% | 1,162.31 | - Net proceeds from the top-up placing of approximately **HKD 1,161.6 million** have been fully utilized[138](index=138&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=56&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's 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[139](index=139&type=chunk) [Audit and Risk Management Committee](index=57&type=section&id=Audit%20and%20Risk%20Management%20Committee) The Board has established an Audit and Risk Management Committee responsible for assisting the Board in monitoring the Company's compliance with laws and regulations, internal control policies, financial management processes, and risk management systems - The Audit and Risk Management Committee is chaired by Mr. Ye Changqing, an independent non-executive director, with primary responsibilities including monitoring the Company's compliance with laws and regulations, internal controls, and risk management[140](index=140&type=chunk) [Review of Interim Results](index=57&type=section&id=Review%20of%20Interim%20Results) The Audit and Risk Management Committee has reviewed the group's unaudited consolidated financial statements for the six months ended June 30, 2025, deeming them compliant with applicable accounting standards, laws, and regulations, and adequately disclosed - The Audit and Risk Management Committee has reviewed the interim results, deeming them compliant with applicable accounting standards, laws, and regulations, and adequately disclosed[141](index=141&type=chunk) [Events After Reporting Period](index=57&type=section&id=Events%20After%20Reporting%20Period) Except for those disclosed in this announcement, there were no material events after the reporting period as of the date of this announcement - Except for those disclosed in this announcement, there were no material events after the reporting period as of the date of this announcement[142](index=142&type=chunk) [Publication of Interim Results Announcement and 2025 Interim Report](index=58&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%202025%20Interim%20Report) This interim results announcement has been published on the Stock Exchange and the Company's website, and the 2025 interim report will be dispatched to shareholders and published on relevant websites in due course - This interim results announcement is published on the Stock Exchange website (www.hkexnews.hk) and the Company's website (www.jxr-fertility.com)[143](index=143&type=chunk) [Definitions](index=58&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used in the report, such as "ARS" (Assisted Reproductive Services), "IFRS" (International Financial Reporting Standards), and "IOT" (Invest-Operate-Transfer) - This section provides definitions for key terms and abbreviations used in the report, such as **"ARS"** (Assisted Reproductive Services), **"IFRS"** (International Financial Reporting Standards), and **"IOT"** (Invest-Operate-Transfer)[144](index=144&type=chunk)[148](index=148&type=chunk) [Board Information](index=63&type=section&id=Board%20Information) This section provides details on the composition of the Company's Board of Directors, including executive, non-executive, and independent non-executive members - The Company's Board of Directors includes Executive Directors Dr. John G. Wilcox, Mr. Dong Yang, Ms. Lu Rong, and Dr. Geng Lihong; Chairman and Non-executive Director Mr. Zhong Yong, and Non-executive Directors Mr. Fang Min, Ms. Hu Zhe, and Ms. Yan Xiaoqing; and Independent Non-executive Directors Dr. Zhuang Yiqiang, Mr. Li Jianwei, Mr. Wang Xiaobo, and Mr. Ye Changqing[153](index=153&type=chunk)