Financial Performance - Total revenue for 2024 reached RMB 1,654,289,000, representing an increase of 3.6% compared to RMB 1,596,266,000 in 2023[7] - Net profit attributable to shareholders for 2024 was RMB 65,610,000, a decrease of 23.6% from RMB 85,948,000 in 2023[7] - The group's total revenue for the reporting period was RMB 1,654.3 million, an increase of 3.6% compared to 2023, with self-operated hospital revenue reaching RMB 1,517.8 million, up 2.2%[30] - Net profit attributable to shareholders was RMB 65.6 million, a decrease of 23.7% compared to 2023[30] - The gross profit margin for self-owned hospitals increased to 25.9% from 25.4% in 2023, with total gross profit rising to RMB 438.4 million, a 6.6% increase[40] - The total gross profit for the group reached RMB 438.4 million, a 6.6% increase from 2023, with a gross margin of 26.5%[59][61] - Cash generated from operating activities was RMB 99.6 million, a decrease of RMB 165.4 million compared to RMB 265.0 million in 2023, primarily due to an increase in accounts receivable from medical insurance by RMB 134.9 million[40] - The income tax expense for the reporting period was RMB 17.7 million, a 44.5% increase from RMB 12.3 million in 2023, with effective tax rates of 26.0% in 2024 and 12.4% in 2023[71] Assets and Liabilities - Total assets as of December 31, 2024, were RMB 3,004,953,000, a slight decrease from RMB 3,047,687,000 in 2023[7] - The total liabilities as of December 31, 2024, were RMB 1,661,651,000, compared to RMB 1,639,481,000 in 2023[7] - The asset-liability ratio increased to 55.3% as of December 31, 2024, compared to 53.8% as of December 31, 2023[101] - As of December 31, 2024, accounts receivable increased to RMB 571.8 million, a 36.0% increase from RMB 420.4 million in 2023, mainly due to changes in medical insurance pre-settlement rules[73] Operational Highlights - The company operated 25 specialized mental health hospitals, generating revenue of RMB 1,056,000,000 during the reporting period[10] - Revenue from elderly care services amounted to RMB 462,000,000, indicating a growing demand and improved profitability[10] - The group operates 32 self-owned hospitals as of December 31, 2024, with the number of operational beds increasing to 11,508 from 11,268 in 2023[30] - The elderly care segment generated approximately RMB 461.9 million in medical business revenue, accounting for 30.4% of the group's self-operated hospital revenue[33] - Self-owned hospital billings amounted to RMB 1,582.1 million, a 2.9% increase from 2023, driven by an increase in outpatient and inpatient visits[44] Market Trends and Government Policies - As of the end of 2024, the elderly population aged 60 and above in China is projected to exceed 310 million, accounting for 22% of the total population[19] - The demand for elderly medical services is expected to surge significantly, leading to continuous expansion of the elderly healthcare market in China[19] - The government has introduced a series of policies to encourage social capital investment in the elderly healthcare sector, providing strong policy support for its development[19] - The "14th Five-Year" public service plan emphasizes the expansion of psychiatric and geriatric medical personnel to meet growing healthcare demands[17] - The government encourages the establishment of integrated medical and elderly care institutions to address the health needs of the aging population[20] Strategic Initiatives - The company plans to strengthen its internet hospital platform and optimize the pharmaceutical supply chain to meet diverse health needs[10] - The company aims to develop a core competitive advantage in elderly care services, integrating it with mental health operations for future growth[10] - The company aims to enhance operational efficiency and leverage information technology to strengthen its market position in mental health services[29] - Future strategies include deepening the integration of medical and financial operations, optimizing asset management, and advancing digitalization and AI applications[37] - The company is accelerating its layout in the elderly medical service sector, aiming to construct a diversified business growth curve[29] Research and Development - The group reported a total of 25 research projects submitted and 164 academic papers published, including 85 SCI papers, showcasing strong research innovation capabilities[35] - Research and development expenses amounted to RMB 36.5 million, a 12.5% increase from 2023, representing 2.4% of the self-owned hospital operating revenue[65] Shareholder and Governance Matters - The company distributed dividends totaling RMB 32,700,000, accounting for approximately 49.8% of the net profit attributable to shareholders[11] - The board proposed a final cash dividend of RMB 3 per 10 shares, totaling RMB 21,801,000, which represents 33.2% of the net profit attributable to shareholders for the reporting period[143] - The company has implemented an equity incentive plan, with a total of 2,460,000 incentive shares granted, representing 3.39% of the total issued share capital[105] - The stock incentive plan aims to grant a maximum of 2,460,000 shares, representing 3.39% of the company's total issued shares (excluding treasury shares) and 4.66% of the total non-listed circulating domestic shares[108] - The company has adhered to corporate governance codes and best practices during the reporting period[184] Employee and Talent Management - The total number of full-time employees increased to 4,869 as of December 31, 2024, from 4,765 in the previous year, with total employee compensation amounting to RMB 644.1 million[102] - The company emphasizes the importance of medical talent training and development, implementing annual training plans for employees[131] Environmental and Social Responsibility - The company is committed to environmental responsibility and has engaged third parties for proper disposal of medical waste[137] - Charitable donations and other contributions totaled approximately RMB 2.7 million for the year ended December 31, 2024[156]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of RMB 1,654.3 million, representing a 3.6% increase compared to RMB 1,596.3 million in 2023[4]. - The net profit attributable to shareholders for the same period was RMB 65.6 million, a decrease of 23.7% from RMB 85.9 million in 2023[4]. - The total assets of the company as of December 31, 2024, were RMB 3,004.9 million, a slight decrease from RMB 3,047.7 million in 2023[4]. - The company reported a net cash outflow from operating activities of RMB 99.6 million, down from RMB 265.0 million in 2023[4]. - The group reported a billable income of RMB 1,582.1 million for owned hospitals, a growth of 2.9% compared to 2023, driven by an increase in outpatient and inpatient visits[18]. - Total operating revenue for 2024 reached RMB 1,654,289,413, an increase of 3.7% compared to RMB 1,596,265,532 in 2023[106]. - Total operating costs for 2024 were RMB 1,549,653,899, up from RMB 1,495,651,128 in 2023, reflecting a growth of 3.6%[106]. - Net profit for 2024 decreased to RMB 50,397,711, down 42% from RMB 86,931,608 in 2023[107]. - Basic and diluted earnings per share for 2024 were both RMB 0.88, compared to RMB 1.15 in 2023[108]. Operational Metrics - The company operated 32 hospitals as of December 31, 2024, maintaining the same number as in 2023, with total operational beds increasing to 11,508 from 11,268[6]. - Revenue from owned hospital operations was RMB 1,517.8 million, an increase of 2.2% from 2023[14]. - The gross profit margin for owned hospitals improved to 25.9%, up from 25.4% in 2023[14]. - The total revenue from inpatient services for the year ended December 31, 2024, was RMB 933.7 million, a 0.4% increase compared to 2023, driven by a 5.6% growth in inpatient bed days due to new acquisitions[22]. - Outpatient revenue for the same period reached RMB 173.5 million, reflecting a 4.9% increase, supported by a 20.1% rise in outpatient visits despite a 12.6% decrease in average spending per visit[22]. - The average occupancy rate for inpatient services improved to 88.4% in 2024 from 85.9% in 2023, with total inpatient bed days increasing to 2,889,163[21]. - The total revenue from pharmaceutical sales was RMB 218.1 million, up 4.6% from RMB 208.4 million in 2023[22]. Research and Development - The company submitted 25 research projects and published 164 academic papers, including 85 SCI papers, showcasing strong research innovation capabilities[10]. - Research and development expenses amounted to RMB 36.5 million, a 12.5% increase from 2023, representing 2.4% of self-owned hospital operating revenue[38]. - Research and development expenses increased to RMB 36,519,661 in 2024, up from RMB 32,466,196 in 2023, indicating a growth of 12.6%[106]. Elderly Care Services - The elderly care business generated approximately RMB 461.9 million in medical revenue, accounting for 30.4% of the company's self-operated hospital revenue[9]. - The company is actively expanding its elderly care services, with six elderly hospitals opened and one health care project under construction[9]. - The total revenue from elderly care inpatient services was RMB 439.7 million, marking a 12.9% increase, attributed to a 23.4% rise in inpatient bed days[26]. - The average expenditure for elderly care outpatient services decreased significantly, leading to a 33.5% drop in outpatient revenue for elderly care[26]. Financial Position and Liabilities - The balance of bank borrowings as of December 31, 2024, was RMB 946.2 million, an increase from RMB 864.7 million as of December 31, 2023, due to repayments of RMB 367.0 million and new borrowings of RMB 448.5 million[69]. - The asset-liability ratio increased to 55.3% as of December 31, 2024, compared to 53.8% as of December 31, 2023[75]. - The company's total liabilities decreased to RMB 1,994,721,479 in 2024 from RMB 2,060,039,035 in 2023[110]. - The total liabilities to equity ratio for 2024 is approximately 1.24, indicating a slight increase from the previous year's ratio[111]. Shareholder Returns and Dividends - The board of directors has proposed a final dividend of RMB 3 per 10 shares, totaling RMB 21.801 million, which represents 33.2% of the net profit attributable to the parent company's shareholders for the reporting period[82]. - The total proposed dividends for the 2024 interim and final periods amount to RMB 32.701 million, accounting for 49.8% of the net profit attributable to the parent company's shareholders[82]. - The proposed final dividend for the year ended December 31, 2024, is RMB 21,801,000, based on 72,670,000 shares, pending shareholder approval[135]. - The company plans to distribute an interim dividend of RMB 10,900,500 for the six months ended June 30, 2024, also based on 72,670,000 shares, subject to approval at the upcoming extraordinary general meeting[135]. Corporate Governance and Compliance - The audit committee reviewed the financial performance for the fiscal year ending December 31, 2024, and confirmed compliance with applicable accounting standards[89]. - The company has adhered to all corporate governance codes during the reporting period[90]. - The financial statements were prepared in accordance with the Enterprise Accounting Standards and based on the going concern principle[96]. - The company has not made any significant changes to its accounting policies that would materially affect its financial position[101]. Employee and Management - The company has a total of 4,869 full-time employees as of December 31, 2024, compared to 4,765 employees as of December 31, 2023, with employee compensation amounting to RMB 644.1 million, up from RMB 607.4 million in 2023[76]. - The average employee compensation, including social insurance and housing fund contributions, is RMB 132.3 thousand per year[76]. - The board of directors includes experienced executives, which may contribute to strategic decision-making and governance[142].

Revenue and Profit Performance - Total revenue for the first half of 2024 reached RMB 829.0 million, a 6.6% increase compared to the same period last year[19] - Revenue from self-operated hospitals amounted to RMB 765.6 million, a 5.1% year-on-year growth[19] - Net profit attributable to shareholders of the company was RMB 50.7 million, up 15.9% from the previous year[19] - The company's total revenue for the first half of 2024 reached RMB 829.0 million, a 6.6% increase compared to the same period in 2023[25] - Net profit attributable to shareholders increased by 15.9% year-over-year to RMB 50.7 million in the first half of 2024[25] - The company's self-operated hospitals achieved a gross profit margin of 27.5% in the first half of 2024, up from 24.9% in the same period in 2023[25] - The company's self-operated hospitals generated billable revenue of RMB 784.9 million, a 5.5% increase compared to the same period in 2023[27] - The company's self-operated hospitals achieved a gross profit of RMB 229.7 million, a 16.8% increase compared to the same period in 2023[28] - Total revenue for the first half of 2024 reached RMB 828.96 million, a 6.56% increase compared to RMB 777.93 million in the same period last year[116] - Net profit for the first half of 2024 was RMB 44.99 million, a decrease of 7.66% from RMB 48.73 million in the same period last year[118] - Operating profit for the first half of 2024 was RMB 63.83 million, a 12.97% increase compared to RMB 56.50 million in the same period last year[118] - Net profit for the period was RMB 29,384,349.62, compared to a net loss of RMB -8,676,844.29 in the previous period[120] - Comprehensive income attributable to the parent company was RMB 50,723,744.20, compared to RMB 43,750,057.46 in the previous period[119] Hospital Operations and Performance - The number of self-operated hospitals remained at 32, with the number of operational beds increasing to 11,648 from 11,268 at the end of 2023[19] - Some hospitals, such as Huainan Kangning Hospital and Changchun Kanglin Psychological Hospital, showed significant performance growth due to refined management measures[22] - Hospitals like Beijing Yining Hospital and Shenzhen Yining Hospital faced challenges due to high property costs, leading to cumulative losses[22] - Revenue from self-operated hospitals accounted for RMB 765.6 million, representing 31.1% of the company's total self-operated hospital revenue, with the elderly medical sector showing initial scale[24] - The company operates 6 elderly hospitals and has 1 health care project under construction, with a total of approximately 2,730 beds[24] - The elderly medical sector generated revenue of RMB 238.1 million in the first half of 2024, with some hospitals showing significant growth compared to the same period in 2023[24] - Hospital bill income increased by 6.2% to RMB 677.2 million, driven by a 15.2% growth in hospital bed days due to new acquisitions and expansions[32] - Outpatient bill income slightly increased by 1.2% to RMB 107.7 million, with outpatient visits decreasing by 3.0% but average outpatient spending per visit rising by 4.2%[32] - Treatment and general medical service income grew by 5.2%, accounting for 78.7% of the hospital's operating income, while drug sales income increased by 6.5%, making up 21.3%[32] - Outpatient visits totaled 243,108 in the first half of 2024, with outpatient revenue reaching RMB 107.7 million[29] Financial Position and Cash Flow - Operating cash flow for the first half of 2024 was RMB 116.5 million, compared to RMB 113.6 million in the same period last year[17] - Total assets as of June 30, 2024, were RMB 3,008.4 million, slightly down from RMB 3,047.7 million at the end of 2023[18] - Total liabilities decreased to RMB 1,581.9 million from RMB 1,639.5 million at the end of 2023[18] - Equity attributable to shareholders of the company increased to RMB 1,290.9 million from RMB 1,265.1 million at the end of 2023[18] - The company's own hospital revenue costs increased by 1.4% to RMB 555.2 million, with employee benefits and expenses rising by 9.3% and drug and consumable costs decreasing by 6.1%[33] - Gross profit for the company's own hospital business increased by 16.1% to RMB 210.4 million, with the gross margin rising to 27.5%, up 2.6 percentage points from the previous year[37] - Other medical-related business income reached RMB 63.0 million, with non-hospital drug and medical device sales contributing RMB 41.7 million[34] - Property rental income decreased significantly to RMB 0.3 million due to new lease conditions and the return of subleased properties[35] - Management expenses increased by 4.3% to RMB 106.3 million, primarily due to a 15.1% rise in employee benefits and expenses[41] - The company's comprehensive gross margin improved to 27.3%, up from 25.9% in the previous year[37] - Sales expenses increased to RMB 9.2 million, accounting for 1.2% of the company's own hospital operating income[39] - R&D expenses increased by 17.6% to RMB 17.6 million, accounting for 2.3% of the company's self-operated hospital revenue[43] - Net financial expenses rose to RMB 24.5 million, with interest expenses on borrowings increasing by RMB 4.0 million compared to the same period in 2023[45] - Investment income reached RMB 1.7 million, primarily due to a RMB 1.4 million gain from the disposal of equity in Hangzhou Yining Hospital[46] - Credit impairment losses increased to RMB 5.6 million, up from RMB 3.0 million in the same period last year[47] - Non-operating income decreased by RMB 5.4 million to RMB 0.5 million, mainly due to a RMB 5.5 million reduction in donations received[49] - Income tax expenses grew by 43.9% to RMB 16.5 million, with the effective tax rate rising to 26.9% from 19.1%[50] - Accounts receivable increased by 6.6% to RMB 448.1 million, with a turnover period of 95 days[54] - Construction in progress rose to RMB 234.0 million, primarily due to new projects at Lucheng Yining Hospital and Linhai Cining Hospital[56] - Net cash generated from operating activities amounted to RMB 116.5 million, including a net profit of RMB 45.0 million and adjustments for depreciation and amortization of RMB 79.4 million[62] - Net cash used in investing activities amounted to RMB 112.7 million, primarily due to the purchase of property, plant, and equipment totaling RMB 111.0 million, including infrastructure investments in hospitals such as Lucheng Yining Hospital and Quzhou Yining Hospital[63] - Net cash outflow from financing activities was RMB 41.7 million during the reporting period[66] - Bank loan balance as of June 30, 2024, was RMB 923.3 million, an increase from RMB 864.7 million as of December 31, 2023, driven by repayments of RMB 304.8 million and new borrowings of RMB 363.4 million[66] - The company's asset-liability ratio slightly decreased to 52.6% as of June 30, 2024, compared to 53.8% as of December 31, 2023[72] - The company had 4,742 employees as of June 30, 2024, with total employee compensation (including salaries and benefits) of approximately RMB 313.8 million, up from RMB 291.5 million in the same period last year[73] - The average employee salary (including social insurance and housing fund contributions) was RMB 132.4 thousand per year[73] - The company's lease liabilities, excluding amounts due within one year, stood at RMB 158.9 million as of June 30, 2024[69] - The company did not engage in any significant investments, acquisitions, or disposals during the six months ended June 30, 2024[66] - Total assets as of June 30, 2024, amounted to RMB 3,008,351,772.44, a slight decrease from RMB 3,047,686,606.84 at the end of the previous year[109] - Current assets totaled RMB 957,021,290.30, with cash and cash equivalents at RMB 373,302,433.47, down from RMB 418,861,721.39 at the end of the previous year[108] - Non-current assets amounted to RMB 2,051,330,482.14, including fixed assets of RMB 782,127,103.00 and intangible assets of RMB 307,875,476.38[109] - Long-term equity investments increased to RMB 141,550,815.01 from RMB 139,071,987.05 at the end of the previous year[109] - Accounts receivable increased to RMB 448,102,421.02 from RMB 420,441,069.56 at the end of the previous year[108] - Inventory decreased to RMB 51,889,640.76 from RMB 60,600,180.25 at the end of the previous year[108] - Construction in progress increased significantly to RMB 234,034,296.61 from RMB 186,980,240.67 at the end of the previous year[109] - Total liabilities decreased to RMB 1,581,889,916.28 from RMB 1,639,480,660.02 compared to the end of the previous year[111] - Total owner's equity increased to RMB 1,426,461,856.16 from RMB 1,408,205,946.82[111] - Short-term borrowings decreased to RMB 111,000,000.00 from RMB 127,001,700.00[110] - Accounts payable increased to RMB 112,544,938.03 from RMB 110,060,007.67[110] - Long-term borrowings increased to RMB 768,224,669.65 from RMB 557,719,214.69[110] - Total current assets increased to RMB 856,201,535.51 from RMB 847,091,576.19[112] - Long-term equity investments increased to RMB 793,380,629.16 from RMB 785,983,439.17[113] - Fixed assets decreased to RMB 283,949,624.57 from RMB 288,701,322.35[113] - Intangible assets decreased to RMB 23,105,075.42 from RMB 23,680,002.23[113] - Total assets increased to RMB 2,068,476,006.37 from RMB 2,050,057,345.62[113] - Total liabilities as of June 30, 2024, amounted to RMB 804.83 million, a slight increase from RMB 794.29 million at the end of the previous year[114] - Short-term borrowings decreased by 11.20% to RMB 111.00 million as of June 30, 2024, compared to RMB 125.00 million at the end of the previous year[114] - Long-term borrowings increased by 39.85% to RMB 506.30 million as of June 30, 2024, compared to RMB 362.04 million at the end of the previous year[114] - Total equity as of June 30, 2024, was RMB 1.26 billion, a slight increase from RMB 1.26 billion at the end of the previous year[115] - R&D expenses for the first half of 2024 were RMB 17.59 million, a 17.58% increase compared to RMB 14.96 million in the same period last year[116] - Financial expenses for the first half of 2024 were RMB 24.47 million, a 21.36% increase compared to RMB 20.16 million in the same period last year[116] - The company's total assets as of June 30, 2024, were RMB 2.07 billion, a slight increase from RMB 2.05 billion at the end of the previous year[115] - Operating revenue for the period was RMB 193,286,941.03, an increase from RMB 176,204,799.00 in the previous period[120] - Basic earnings per share (EPS) for the period was RMB 0.68, up from RMB 0.59 in the previous period[119] - Cash flow from operating activities was RMB 116,535,983.61, slightly higher than RMB 113,591,338.70 in the previous period[122] - Sales of goods and services generated RMB 774,736,897.94 in cash, down from RMB 780,086,767.35 in the previous period[122] - R&D expenses increased to RMB 12,778,787.81 from RMB 9,690,626.11 in the previous period[120] - Investment income for the period was RMB 14,189,338.60, compared to a loss of RMB -775,547.72 in the previous period[120] - Interest expenses for the period were RMB 13,692,407.18, up from RMB 11,787,407.21 in the previous period[120] - Investment activities generated a net cash outflow of RMB 112.71 million, compared to RMB 119.12 million in the previous period[123] - Financing activities resulted in a net cash outflow of RMB 41.66 million, a significant decrease from the net inflow of RMB 9.79 million in the previous period[123] - The company's cash and cash equivalents decreased by RMB 37.93 million, compared to an increase of RMB 4.27 million in the previous period[124] - Operating activities generated a net cash inflow of RMB 20.38 million, down from RMB 53.71 million in the previous period[124] - The company received RMB 362.77 million in borrowings, an increase from RMB 251.05 million in the previous period[123] - The company repaid RMB 304.77 million in debt, significantly higher than the RMB 109.63 million repaid in the previous period[123] - The company invested RMB 111.00 million in fixed assets, intangible assets, and other long-term assets, slightly higher than the RMB 107.84 million invested in the previous period[123] - The company's cash and cash equivalents balance at the end of the period was RMB 366.79 million, compared to RMB 262.87 million in the previous period[124] - The parent company's cash and cash equivalents decreased by RMB 19.60 million, compared to an increase of RMB 45.81 million in the previous period[125] - The parent company received RMB 293.00 million in borrowings, an increase from RMB 199.05 million in the previous period[125] - Total owner's equity as of June 30, 2024, was RMB 1,408,205,946.82, with minority interests amounting to RMB 143,141,250.58[126] - The company's capital reserve remained unchanged at RMB 38,399,577.13 for the period[126][129] - Net profit attributable to the parent company's owners decreased by RMB 11,942,120.95 compared to the previous period[126] - Owner's equity decreased by RMB 8,566,709.51 due to capital reduction and owner's investment[126][143] - The company's share capital remained stable at RMB 74,600,300.00[126][153] - Comprehensive income for the period showed a decrease of RMB 2,382,931.61 compared to the previous period[129] - The company's undistributed profit decreased by RMB 22,380,090.00 due to profit distribution[139] - Total owner's equity at the beginning of the year was RMB 1,265,064,696.24[126] - The company's special reserve decreased by RMB 3,375,411.44 during the period[126] - Owner's equity at the end of the period was RMB 1,263,645,164.63[140] - Total owner's equity as of June 30, 2024, is RMB 1,226,134,196.95[161] - Undistributed profits amount to RMB 241,903,691.18[161] - Surplus reserve stands at RMB 38,399,577.13[161] - The company's registered capital is RMB 74,600,300.00[162] - Cumulative issued share capital as of June 30, 2024, is 74.60 million shares[163] - The company's main business activities include operating psychiatric hospitals and providing hospital management services[163] - The company's actual controllers are Guan Weili and his spouse Wang Lianyue[163] - The company's income tax rate is 15%[166] - The company's subsidiary, Zhejiang Jieling Health Technology Co., Ltd., has a 15% income tax rate[167] - The company has applied for high-tech enterprise qualification and expects to receive the certificate by December 2024, which would reduce its income tax rate to 15%[167] - Total monetary funds decreased to RMB 373.3 million from RMB 418.9 million at the end of the previous year, with bank deposits accounting for the majority at RMB 367.2 million[169] - Trading financial assets increased slightly to RMB 7.6 million, all of which are equity instrument investments[170] - Accounts receivable increased to RMB 500.9 million, with 88.6% (RMB 443.6 million) within 1 year and bad debt provision increased to RMB 52.8 million[173] - Significant bad debt provision for patient medical fee arrears was RMB 24.3 million, representing 84.56% of the total amount[175] -

Financial Performance - Total revenue for the first half of 2024 reached RMB 829.0 million, a 6.6% increase compared to RMB 777.9 million in the same period of 2023[2] - Net profit attributable to shareholders for the first half of 2024 was RMB 50.7 million, reflecting a 15.9% increase from RMB 43.8 million in the previous year[3] - Operating income from self-owned hospitals amounted to RMB 765.6 million, up 5.1% year-on-year[3] - The overall gross profit increased to RMB 226.2 million, reflecting a growth of 12.2% compared to 2023[7] - The cash generated from operating activities was RMB 116.5 million, a 2.6% increase compared to the same period in 2023[7] - The company achieved revenue of RMB 829.0 million, a 6.6% increase compared to the same period in 2023[7] - The total revenue from treatment and general medical services was RMB 617.7 million, an increase of 5.2% year-on-year[11] - Total operating revenue for the six months ended June 30, 2024, was RMB 828,957,554, an increase from RMB 777,925,164 for the same period in 2023, reflecting a growth of approximately 6.5%[70] - Total profit for the first half of 2024 reached CNY 61,512,576, up from CNY 60,207,112 in 2023, indicating a growth of about 2.2%[73] Operational Highlights - The total number of self-owned hospitals remained at 32, with an increase in operational bed count to 11,648 from 11,268 as of December 31, 2023[3] - Revenue from elderly care services reached approximately RMB 238.1 million, accounting for 31.1% of the operating income from self-owned hospitals[6] - The group opened 6 elderly hospitals and has 1 ongoing health care project, with around 2,730 beds available[6] - The company's self-operated hospital billing revenue was RMB 784.9 million, a 5.5% increase year-on-year, driven by increased outpatient and inpatient visits[9] - The average bed occupancy rate for inpatient services improved to 87.4%, up from 84.0% in the previous year[10] - The company expanded its hospital bed capacity to 11,648 beds, an increase from 10,578 beds in the previous year[10] Financial Position - Total assets as of June 30, 2024, were RMB 3,008.4 million, a slight decrease from RMB 3,047.7 million at the end of 2023[2] - Total liabilities decreased to RMB 1,581.9 million from RMB 1,639.5 million at the end of 2023[2] - As of June 30, 2024, inventory balance was RMB 519 million, down from RMB 606 million as of December 31, 2023[28] - Accounts receivable balance increased to RMB 4,481 million, a growth of 6.6% from RMB 4,204 million as of December 31, 2023, mainly due to increased operating income from self-owned hospitals[29] - The group’s debt-to-asset ratio slightly decreased to 52.6% from 53.8% as of December 31, 2023[48] - The company reported cash and cash equivalents of CNY 373,302,433 as of June 30, 2024, down from CNY 418,861,721 at the end of 2023, a decrease of about 10.9%[76] Expenses and Costs - The group's self-owned hospital operating costs increased to RMB 555.2 million, a slight increase of 1.4% compared to RMB 547.5 million in the same period of 2023[13] - Employee benefits and expenses accounted for 41.1% of self-owned hospital operating costs, up from 38.1% in the same period of 2023[14] - Management expenses totaled RMB 106.3 million, a 4.3% increase from RMB 101.9 million in the same period of 2023, with employee benefits and expenses rising by 15.1%[20] - Research and development expenses rose to RMB 17.6 million, a 17.6% increase from RMB 15.0 million in the same period of 2023, representing 2.3% of self-owned hospital operating revenue[21] - Financial expenses net amount was RMB 24.5 million, an increase of RMB 4.3 million compared to the same period in 2023, primarily due to an increase in borrowing interest expenses[23] Shareholder Information - The company proposed a mid-term dividend of RMB 1.50 per 10 shares, totaling approximately RMB 11,077,260, which represents 21.8% of the net profit attributable to shareholders for the reporting period[65] - Basic and diluted earnings per share for the first half of 2024 were both CNY 0.68, compared to CNY 0.59 in the same period of 2023, marking an increase of about 15.3%[75] - The proposed cash dividend for the interim profit distribution is RMB 1.50 per 10 shares, amounting to a total of RMB 11,077,260 based on the current share capital[94] Strategic Initiatives - The group aims to enhance operational management and adapt to new policies in the healthcare sector, focusing on mental health and elderly care as core business areas[6] - The group is actively adjusting operational strategies in response to underperforming hospitals due to local healthcare insurance settlement discrepancies[4] - The company plans to expand its market presence and invest in new product development, although specific figures were not disclosed[86] - The company’s strategy includes potential mergers and acquisitions to enhance growth opportunities in the future[86] Compliance and Governance - The audit committee has reviewed the interim performance announcement and confirmed compliance with applicable accounting standards and regulations[64] - The company has complied with all corporate governance codes during the reporting period[67] - The financial statements are prepared in accordance with the Chinese Accounting Standards and are consistent with the accounting policies used for the 2023 annual financial statements[69] Employee Information - The group employed 4,742 employees as of June 30, 2024, a decrease from 4,765 employees as of December 31, 2023[49] - Employee compensation for the reporting period was approximately RMB 313.8 million, compared to RMB 291.5 million for the six months ended June 30, 2023[49] - The average employee compensation, including social insurance and housing fund contributions, was RMB 132.4 thousand per year[49]

Financial Performance - Total revenue for 2023 reached RMB 1,596.3 million, a 7.5% increase compared to 2022[4] - Revenue from self-operated hospitals in 2023 was RMB 1,485.2 million, an 8.7% increase from 2022[4] - Net profit attributable to shareholders in 2023 was RMB 85.9 million, turning a profit compared to 2022[4] - The company's ROE (Return on Equity) for 2023 was 7.0%[4] - Revenue for 2023 reached RMB 1,596,266 thousand, a 7.5% increase from RMB 1,484,903 thousand in 2022[27] - Net profit attributable to the company's shareholders in 2023 was RMB 85,948 thousand, a significant improvement from a loss of RMB 24,221 thousand in 2022[27] - Total assets increased to RMB 3,047,687 thousand in 2023, up 15.5% from RMB 2,637,787 thousand in 2022[27] - Total liabilities rose to RMB 1,639,481 thousand in 2023, a 24.9% increase from RMB 1,311,885 thousand in 2022[27] - The company's equity attributable to shareholders grew to RMB 1,265,065 thousand in 2023, up 5.3% from RMB 1,201,585 thousand in 2022[27] - Total revenue for 2023 reached RMB 1,596.3 million, a 7.5% increase compared to 2022[63] - Revenue from self-operated hospitals grew to RMB 1,485.2 million, an 8.7% increase year-over-year[63] - Net profit attributable to shareholders was RMB 85.9 million, turning around from a loss in 2022, with a return on equity of 7.0%[63] - The company achieved revenue of RMB 1,596.3 million in 2023, a 7.5% increase compared to 2022, with self-operated hospital revenue reaching RMB 1,485.2 million, an 8.7% increase[71] - Gross profit margin for self-operated hospitals improved to 25.4% in 2023, up from 23.9% in 2022, with overall gross profit increasing by 16.5% to RMB 411.1 million[71] - Net profit attributable to shareholders was RMB 85.9 million in 2023, turning around from a loss in 2022[71] - Operating cash flow increased by 16.6% to RMB 265.0 million in 2023 compared to RMB 227.2 million in 2022[71] - Self-operated hospital billable revenue reached RMB 1,537.4 million in 2023, a 7.9% increase, driven by growth in outpatient and inpatient visits[73] - Variable consideration decreased to RMB 52.2 million in 2023, accounting for 3.4% of billable revenue, down from 4.1% in 2022[73] - Public medical insurance settlements accounted for 68.7% of the company's cash received from sales and services in 2023, maintaining a similar proportion to previous years (68.6% in 2021 and 69.3% in 2022)[69] - The company's self-operated hospital billable revenue increased to RMB 1,537,406 thousand in 2023 from RMB 1,425,005 thousand in 2022[94] - The company's outpatient billable revenue reached RMB 218.3 million in 2023, a 5.6% increase compared to 2022, despite a 5.0% decrease in outpatient visits[101] - The average outpatient expenditure per visit increased by 11.2% to RMB 436 in 2023[99] - The company's gross profit from self-operated hospitals increased to RMB 429,486 thousand in 2023 from RMB 384,890 thousand in 2022[96] - The company's treatment and general medical service revenue reached RMB 1,214,672 thousand in 2023, up from RMB 1,119,887 thousand in 2022[99] - The company's drug sales revenue increased to RMB 322,734 thousand in 2023 from RMB 305,118 thousand in 2022[99] - The company's own hospital revenue costs increased to RMB 1,107.9 million, a 6.5% growth compared to 2022, driven by a 7.7% increase in drug and consumable expenses, an 11.6% rise in employee benefits and expenses due to increased hospital beds, and a 9.1% decrease in asset depreciation and amortization[105] - The gross margin for the company's own hospital business increased to 25.4% in 2023 from 23.9% in 2022, while the overall gross margin rose to 25.8% from 23.8%[106] - The company's own hospital billable income increased by RMB 112.4 million compared to 2022, with a gross profit growth of 11.6% due to increased inpatient bed days and cost control[119] - The number of inpatient beds at the end of the period was 11,268, up from 9,688 in 2022, with an effective inpatient service bed day capacity of 4,112,820, compared to 3,536,120 in 2022[120] - Inpatient billable income reached RMB 1,319.1 million, an 8.3% increase from 2022, driven by a 10.7% growth in inpatient bed days[121] - The company's total gross profit reached RMB 411.1 million, a 16.5% increase from 2022, with the gross profit of the own hospital business reaching RMB 377.2 million, a 15.5% growth[125] - The company's comprehensive gross margin increased to 25.8% in 2023 from 23.8% in 2022, with the gross margin of the own hospital business growing by 1.5 percentage points[126] - Management expenses were RMB 213.0 million, a 3.5% increase from 2022, with employee benefits and expenses rising by 5.5%[129] - R&D expenses were RMB 32.5 million, a 1.7% decrease from 2022, accounting for 2.2% of the company's own hospital operating income[131] - The company's net financial expenses were RMB 41.5 million, a decrease of RMB 2.9 million from 2022, with a 9.1% reduction in loan interest expenses due to lower bank loan interest rates[111] - Credit impairment losses decreased to RMB 9.4 million in 2023 from RMB 25.2 million in 2022[133] - Investment losses amounted to RMB 6.1 million, including a one-time impairment of RMB 6.8 million due to the acquisition of Chengdu Yining Hospital[154] - Accounts receivable increased by 9.8% to RMB 420.4 million as of December 31, 2023, driven by increased revenue from the company's self-operated hospitals[137] - Construction in progress increased to RMB 187.0 million, primarily due to new construction projects at Lucheng Yining Hospital and Linhai Cining Hospital[139] - Net cash generated from operating activities was RMB 265.0 million, including net profit of RMB 85.9 million and adjustments for depreciation and amortization of RMB 159.4 million[142] - Net cash used in investing activities was RMB 215.0 million, mainly due to the purchase of property, plant, and equipment totaling RMB 179.7 million[143] - Income tax expense decreased by 53.9% to RMB 12.3 million, with the effective tax rate dropping to 12.4% from 170.3% in 2022[135] - Sales expenses increased to RMB 17.1 million, accounting for 1.2% of the company's self-operated hospital revenue[149] - Other receivables and prepayments increased to RMB 79.5 million as of December 31, 2023, up from RMB 69.4 million in 2022[138] - Inventory balance increased to RMB 60.6 million, primarily consisting of pharmaceutical stock and consumables[159] - Right-of-use assets decreased to RMB 189.1 million as of December 31, 2023 (RMB 190.4 million as of December 31, 2022), mainly due to depreciation[162] - Bank loan balance increased to RMB 864.7 million as of December 31, 2023 (RMB 616.5 million as of December 31, 2022), with repayments of RMB 357.7 million and new borrowings of RMB 605.9 million during the reporting period[167] - Lease liabilities totaled RMB 163.2 million as of December 31, 2023, excluding RMB 28.6 million due within one year[169] - The company had 4,765 full-time employees as of December 31, 2023 (4,196 as of December 31, 2022), with total employee compensation of RMB 607.4 million (RMB 529.4 million in 2022) and average annual compensation of RMB 127.5 thousand[170] - The net cash generated from financing activities for the reporting period was RMB 96.1 million[187] - The total mortgage loan balance as of December 31, 2023, was RMB 260.0 million for Wenzhou Kangning Hospital, RMB 75.1 million for Wenzhou Lucheng Yining Hospital, RMB 25.0 million for Jinyuan Shuning Hospital, and RMB 37.7 million for Quzhou Yining Hospital[188] - The asset-liability ratio increased slightly to 53.8% as of December 31, 2023, compared to 49.7% as of December 31, 2022, primarily due to an increase in bank borrowings[190] Hospital Operations and Expansion - The number of self-operated hospitals increased from 29 at the end of 2022 to 32 at the end of 2023[4] - Operational beds increased from 9,688 at the end of 2022 to 11,268 at the end of 2023[4] - The company acquired controlling stakes in Loudi Kangning Hospital, Dongkou Lening Hospital, and Chengdu Yining Hospital in 2023[4] - The number of self-operated hospitals increased to 32, including one independent internet hospital (Yining Psychological Internet Hospital)[63] - Operational beds expanded to 11,268, up from 9,688 at the end of 2022[63] - The company acquired 51% equity in Loudi Kangning Hospital and Dongkou Lenning Hospital, and completed the acquisition of Chengdu Yining Hospital to expand its mental health specialty network[66] - The company's regional management model showed increasing agglomeration effects, with self-operated hospitals in Taizhou and Haixi regions achieving stable year-on-year growth[64] - The company operates 6 elderly hospitals with approximately 2,540 beds as of December 31, 2023[88] - The company is actively promoting hospital rating evaluations to improve service quality and competitiveness, with its flagship hospital successfully passing the third-level A-grade psychiatric hospital review[89] - The company's own hospital billable income increased by RMB 112.4 million compared to 2022, with a gross profit growth of 11.6% due to increased inpatient bed days and cost control[119] - The number of inpatient beds at the end of the period was 11,268, up from 9,688 in 2022, with an effective inpatient service bed day capacity of 4,112,820, compared to 3,536,120 in 2022[120] - Inpatient billable income reached RMB 1,319.1 million, an 8.3% increase from 2022, driven by a 10.7% growth in inpatient bed days[121] Strategic Focus and National Policies - The company is upgrading its internet hospital platform and strengthening its pharmaceutical supply chain[4] - The company is focusing on the development of mental health and elderly medical services, aligning with national health strategies[3][8] - The Chinese government has set a goal to build a social environment conducive to the mental health of children and adolescents by 2022, with a focus on prevention and intervention measures for mental health issues and disorders[12] - By 2025, China plans to construct 100 mental health welfare facilities in regions with insufficient mental health service capabilities, targeting vulnerable populations such as children and individuals with mental disorders[13] - The "14th Five-Year Plan" for public services emphasizes expanding the scale of psychiatrists and registered nurses, improving mental health diagnosis and treatment capabilities, and encouraging social forces to participate in the supply of medical services[14] - By 2050, China's elderly population aged 60 and above is projected to exceed 500 million, accounting for 38.81% of the total population, signaling a significant market opportunity in elderly healthcare[15] - The Chinese government has issued policies encouraging private capital to participate in the elderly care industry, promoting the integration of medical and elderly care services[15] - The State Council has advocated for the development of smart elderly care services, leveraging internet resources and social forces to provide home-based care services such as health management and rehabilitation[16] - The Zhejiang Provincial Health Commission supports the development of specialized hospitals, particularly in areas like rehabilitation, nursing, and elderly care, encouraging chain and brand development[14] - The Chinese government has introduced policies to support the establishment of medical and elderly care integration institutions, addressing the growing demand for elderly health services[16] - The company emphasized the importance of expanding elderly care, rehabilitation, and maternal care services in line with national policies[42][55][57][59][60][61] - The company is focusing on the growing demand for mental health and elderly medical services, leveraging the window of opportunity created by the "Healthy China" strategy[70] - The company's elderly medical business achieved revenue of approximately RMB 427.1 million in 2023, accounting for 28.8% of the group's self-operated hospital revenue[88] Equity Incentive and Shareholder Information - The company plans to distribute at least 30% of annual net profit as cash dividends from 2023 to 2027, with the goal of increasing this ratio to 50%[7] - No shares were awarded, canceled, or expired under the H-share incentive trust plan during the reporting period[30] - The total number of incentive shares granted under the H-share incentive trust plan and other share plans must not exceed 1% of the company's issued share capital[31] - No shareholders waived or agreed to waive any dividends as of December 31, 2023[34] - The company's main business location is in Wenzhou, Zhejiang Province, China[23] - The company's H-share trading price was approximately HKD 40.00 per share (approximately RMB 32.50 per share) as of May 29, 2018[29] - The company granted a total of 2,454,632 incentive shares to employees, with 133,715 shares granted to senior management and 1,684,814 shares to core technical personnel[43] - No securities were issued during the reporting period[49] - No management contracts were signed for the entire business or main business during the reporting period[51] - The company did not have any approved indemnity provisions as of December 31, 2023[47] - The equity incentive plan granted a total of 2,460,000 shares, representing 3.30% of the company's total share capital and 4.45% of non-tradable domestic shares[179] - The equity incentive plan had 193 grantees, with 1,818,529 shares granted in the first phase, 180,516 shares in the second phase, and 540,229 shares in the third phase[173] - The equity incentive plan has a 48-month lock-up period from the grant date, with a grant price of RMB 10.47 per share[173] - The company had no significant investments, acquisitions, or disposals during the reporting period[166] - The equity incentive plan allows grantees to indirectly hold company shares through a limited partnership employee持股平台[177] - The equity incentive plan grants grantees rights such as dividends and voting rights, which are not restricted by the lock-up period[177] - The company implemented an H-share incentive trust plan to retain core technical and management personnel, approved at the 2023 first extraordinary general meeting on September 27, 2023[186] - The company revised the 2018 equity incentive plan in 2021, removing performance assessment requirements and the obligation to repurchase unvested incentive shares[191] - The equity incentive plan aims to align the interests of shareholders, the company, and the core team, ensuring long-term development and strategic goals[193] - The scope of incentive targets includes directors, supervisors, senior management, core technical (business) personnel, and other personnel deemed necessary by the board of directors[194] - The specific list of incentive targets and their subscription amounts will be determined by the board of directors[195] - The equity incentive plan involves the form of equity, the source and type of shares, and the quantity and proportion of shares relative to the company's total share capital[196] - The equity incentive plan has a validity period of 10 years from April 26, 2018, with approximately 4 years remaining as of the report date[198] - The lock-up period for incentive shares is 48 months from the date of grant[199] - The first batch of incentive shares was fully unlocked on June 28, 2022, 48 months after the initial grant date (June 29, 2018)[200] Risks and Challenges - The company faces risks of professional medical talent shortages, which could impact its ability to provide ideal medical services[90]

Financial Performance - The company reported total revenue of RMB 1,596.3 million for the fiscal year ending December 31, 2023, representing a 7.5% increase compared to RMB 1,484.9 million in 2022[20]. - Net profit attributable to shareholders reached RMB 85.9 million, a turnaround from a loss of RMB 24.2 million in 2022, with a return on equity of 7.0%[20]. - For the fiscal year 2023, the group achieved revenue of RMB 1,596.3 million, a 7.5% increase from 2022, with self-operated hospital revenue rising by 8.7% to RMB 1,485.2 million[25]. - The gross profit margin for self-operated hospitals improved to 25.4% in 2023, up from 23.9% in 2022, leading to an overall gross profit increase of 16.5% to RMB 411.1 million[25]. - The company's net profit for the year 2023 reached RMB 86,931,608, a significant recovery from a net loss of RMB 10,968,839 in 2022, marking a turnaround of over 800%[132]. - Operating profit increased to RMB 101,451,680 in 2023, compared to RMB 16,391,934 in 2022, reflecting a growth of approximately 518%[130]. - Basic earnings per share for the year 2023 were both RMB 1.15, recovering from a loss of RMB 0.32 per share in 2022[134]. Revenue Sources - The operating revenue from self-owned hospitals was RMB 1,485.2 million, an increase of 8.7% from RMB 1,366.8 million in the previous year[20]. - The group’s self-operated hospital billing revenue reached RMB 1,537.4 million, a 7.9% increase driven by higher outpatient and inpatient visits[30]. - The total inpatient revenue was RMB 1,319.1 million, an increase from RMB 1,218.3 million in 2022[33]. - Outpatient billing revenue was RMB 218.3 million, up 5.6% year-over-year, attributed to a 5.0% decrease in outpatient visits and an 11.2% increase in average spending per visit[35]. - Other medical-related business revenue was RMB 105.8 million, with non-hospital drug and medical device sales contributing RMB 64.4 million[39]. Cost and Expenses - The total cost of revenue for self-owned hospitals increased to RMB 1,107.9 million, a growth of 6.5% compared to 2022, primarily due to a 7.7% increase in costs related to drug sales and an 11.6% rise in employee benefits and expenses[38]. - Research and development expenses amounted to RMB 32.5 million, a decrease of 1.7% from 2022, representing 2.2% of the group's self-owned hospital operating revenue[49]. - The group's management expenses were RMB 213.0 million, an increase of 3.5% year-over-year, with management expenses accounting for 14.3% of self-owned hospital operating revenue[53]. - Financial expenses netted RMB 41.5 million, a decrease of RMB 2.9 million from 2022, with borrowing interest expenses down by 9.1% due to lower bank loan rates[56]. Assets and Liabilities - Total assets increased to RMB 3,047.7 million as of December 31, 2023, from RMB 2,637.8 million in 2022[11]. - The company's total liabilities increased to RMB 801,130,416 in 2023, compared to RMB 657,446,340 in 2022, which is an increase of approximately 21.8%[140]. - The company's debt-to-asset ratio increased to 53.8% as of December 31, 2023, compared to 49.7% as of December 31, 2022, mainly due to the increase in bank loans[92]. - Accounts receivable increased by 9.8% to RMB 420.4 million as of December 31, 2023, up from RMB 382.8 million in 2022, attributed to higher operating income from self-owned hospitals[64]. Cash Flow - Cash generated from operating activities was RMB 265.0 million, compared to RMB 227.2 million in 2022[11]. - Net cash used in investing activities was RMB 215.0 million, primarily due to investments in property, plant, and equipment totaling RMB 179.7 million[76]. - Cash flow from operating activities generated CNY 265,033,237 in 2023, compared to CNY 227,220,564 in 2022, marking an increase of approximately 16.6%[143]. - Cash flow from investing activities showed a net outflow of CNY 215,017,085 in 2023, an improvement from a net outflow of CNY 273,615,413 in 2022[145]. Strategic Initiatives - The company is focusing on enhancing mental health services and expanding its elderly care segment in response to increasing demand and supportive government policies[13]. - The company has implemented a regional management model that has shown positive effects, particularly in the Taizhou and Haixi regions, with stable growth in self-owned hospitals[21]. - The group acquired 51% stakes in Loudi Kangning Hospital and Dongkou Lening Hospital, as well as controlling interest in Chengdu Yining Hospital, enhancing its strategic network in the mental health sector[22]. - The company plans to address the losses from Beijing and Shenzhen hospitals due to high property costs through comprehensive strategies[21]. Shareholder Information - The company proposed a final cash dividend of RMB 3 per 10 shares, totaling RMB 22,380,090, which represents 26.0% of the net profit attributable to shareholders for the reporting period[100]. - The total cash dividend for the 2023 interim and proposed final dividends combined is RMB 29,840,120, accounting for 34.7% of the net profit attributable to shareholders[100]. - No shareholders waived or agreed to waive any dividends as of December 31, 2023[105]. Compliance and Governance - The audit committee, consisting of independent non-executive directors, reviewed the financial performance and confirmed compliance with applicable accounting standards[108]. - The company has complied with all corporate governance code provisions during the reporting period[109]. - There were no significant post-reporting period events that could impact the financial statements[113].

Financial Performance - As of June 30, 2023, the net cash generated from operating activities was RMB 113.6 million, primarily driven by a net profit of RMB 48.7 million[9]. - The company's net profit for the current period is RMB 48,729,232.07, an increase of 10.3% compared to RMB 44,220,737.73 in the previous period[88]. - Revenue for the current period is RMB 176,204,799.00, down 5.9% from RMB 185,800,099.09 in the previous period[89]. - The total comprehensive loss for the period was RMB 8,676,844.29, contrasting with a total comprehensive income of RMB 1,835,676.60 in the previous year[118]. - The net loss for the six months ended June 30, 2023, was RMB 8,676,844.29, compared to a net profit of RMB 1,835,676.60 for the same period in 2022, reflecting a significant decline in profitability[117]. Employee Compensation and Workforce - The total employee compensation, including salaries and other benefits, amounted to approximately RMB 291.5 million for the six-month period ending June 30, 2023, compared to RMB 245.3 million for the same period in 2022, reflecting an increase of 18.8%[16]. - As of June 30, 2023, the group had a total of 4,652 employees, an increase from 4,381 employees as of December 31, 2022, indicating a growth of 6.2%[16]. Assets and Liabilities - As of June 30, 2023, total assets amounted to RMB 2,744,232,688.19, an increase from RMB 2,637,787,406.99 as of December 31, 2022, representing a growth of approximately 4.05%[76][78]. - Total liabilities amounted to RMB 1,361,682,980.62, compared to RMB 1,311,884,788.16, showing an increase of approximately 3.8%[78]. - Current liabilities totaled RMB 447,512,463.78, increasing from RMB 379,289,146.65, indicating a rise of about 18.0%[112]. - Long-term borrowings decreased to RMB 352,830,000.00 from RMB 391,010,000.00, a reduction of about 9.8%[78]. Cash Flow - The cash outflow from changes in working capital was RMB 33.5 million during the reporting period[9]. - Cash flow from operating activities is RMB 53,706,408.36, a significant improvement from a negative cash flow of RMB -70,878,195.20 in the previous period[96]. - Cash flow from investment activities resulted in a net outflow of RMB 119,121,752.63, an improvement from a net outflow of RMB 164,454,134.91 in the previous period[121]. - Cash flow from financing activities generated a net inflow of RMB 9,790,257.54, down from RMB 194,881,073.75 in the prior period, indicating a decrease in financing activity[121]. Share Capital and Dividends - The company plans to issue a maximum of 2,460,000 shares under the equity incentive plan, representing 3.30% of the total share capital as of the mid-term report date[50]. - The company anticipates that the proposed interim dividend will be distributed no later than November 30, 2023, pending shareholder approval at the upcoming extraordinary general meeting[62]. - As of June 30, 2023, the company had issued a total of 74,600,300 shares, consisting of 55,260,000 domestic shares and 19,340,300 H shares[44]. Governance and Compliance - The company has adopted the standard code as the code of conduct for securities trading by its directors and supervisors, ensuring compliance from January 1 to June 30, 2023[59]. - The company aims to enhance its corporate governance structure and establish a long-term incentive mechanism to attract and motivate professional management talent[48]. - The company has maintained consistent accounting policies in its mid-term financial statements compared to those used in the 2022 annual financial statements[60]. Investments and Financial Assets - The balance of other non-current financial assets remained stable at RMB 631 million as of June 30, 2023, unchanged from December 31, 2022[6]. - The company's long-term equity investments were valued at RMB 762,632,193.31, an increase from RMB 741,962,585.53, indicating a growth of about 2.8%[81]. - The company has not authorized any significant investments or acquisitions of capital assets as of the date of this interim report[11]. Taxation and Regulatory Matters - The company’s tax rates include a corporate income tax rate of 15% for Wenzhou Kangning Hospital Co., Ltd. and Zhejiang Jieling Health Technology Co., Ltd., and 20% for Yiwu Kangning Hospital Management Co., Ltd.[198].

Financial Performance - The group's inpatient revenue for the period was RMB 637.8 million, an increase of 8.4% compared to the same period in 2022, driven by a 6.8% increase in inpatient bed days[12]. - Total revenue for the six months ended June 30, 2023, was RMB 777.9 million, an increase of 5.4% compared to RMB 738.3 million for the same period in 2022[40]. - Revenue from self-operated hospitals reached RMB 728.7 million, up RMB 54.6 million or 8.0% year-on-year, primarily driven by growth in several hospitals[46]. - The group’s total revenue for the first half of 2023 was RMB 777.9 million, an increase of 5.4% compared to RMB 738.3 million in the same period last year[69]. - The operating income from self-owned hospitals was RMB 728.7 million, reflecting a growth of 6.7% year-on-year[71]. - The net profit attributable to shareholders was RMB 43.8 million, representing a 12.8% increase from RMB 38.8 million in the previous year[75]. - The gross profit margin for self-owned hospitals decreased to 24.9% from 26.5% in the same period last year[75]. - The group recorded a decrease in accounts receivable turnover days to 91 days, compared to 90 days in the previous year[61]. - The total comprehensive income attributable to shareholders of the parent company for the first half of 2023 was RMB 43,750,058, compared to RMB 48,729,233 in 2022, indicating a decline of 10.1%[136]. Operational Metrics - As of June 30, 2023, the group owned 30 hospitals, an increase from 29 as of December 31, 2022, with total operational bed capacity rising to 10,578 beds from 9,688 beds[3]. - The average daily expenditure per inpatient bed increased by 1.5%, while the inpatient revenue accounted for 85.7% of total operating revenue from owned hospitals[12]. - Outpatient revenue reached RMB 106.4 million, reflecting a 5.4% increase year-over-year, attributed to an 11.4% rise in outpatient visits[23]. - The total number of outpatient visits was 250,648, up from 225,032 in the previous year[11]. - The proportion of treatment and general medical service revenue increased to 78.9% of self-operated hospital revenue, up from 78.6% in the same period last year[47]. - The group's self-owned hospital billing revenue for the period was RMB 744.2 million, an increase of 7.9% compared to the same period in 2022, driven by an increase in outpatient and inpatient visits[78]. - Revenue from treatment and general medical services was RMB 587.2 million, up from RMB 542.0 million in the same period last year, representing an increase of 8.3%[79]. Expenses and Costs - Operating expenses increased to RMB 547.5 million, a rise of 9.0% compared to the same period in 2022, mainly due to increased employee benefits and expenses related to the growth in drug sales[49]. - Total operating costs for the six months ended June 30, 2023, were RMB 724,044,724, an increase of 6.5% from RMB 680,267,108 in 2022[124]. - Employee compensation for the period was approximately RMB 291.5 million, compared to RMB 245.3 million for the same period last year, indicating a year-over-year increase of 18.8%[90]. - Financial expenses decreased to RMB 20,159,634 in the first half of 2023 from RMB 21,648,129 in 2022, a reduction of 6.9%[124]. Cash Flow and Financial Position - Net cash generated from operating activities was RMB 113.6 million, significantly higher than RMB 56.0 million for the same period in 2022[38]. - The company reported a net increase in cash and cash equivalents of RMB 4.3 million, compared to an increase of RMB 86.4 million in the same period last year[38]. - The company's cash flow from operating activities showed a significant increase, reflecting improved operational efficiency and cash management strategies[136]. - Cash inflow from operating activities for the six months ended June 30, 2023, was $949,990,763, an increase of 33.6% compared to $710,947,438 in 2022[153]. - The ending balance of cash and cash equivalents as of June 30, 2023, was $262,868,905, a decrease from $275,180,571 in 2022[155]. - The total assets as of June 30, 2023, amounted to RMB 2,744.2 million, an increase from RMB 2,637.8 million at the end of 2022[69]. - The total liabilities increased to RMB 1,361.7 million from RMB 1,311.9 million at the end of 2022[69]. - The company's equity attributable to shareholders increased to RMB 1,242,977,776 as of June 30, 2023, from RMB 1,201,584,945 at the end of 2022, marking a growth of 3.4%[132]. Strategic Initiatives - The group has established a special fund to assist impoverished mental health patients in collaboration with charitable organizations[3]. - The group actively engaged in social responsibility initiatives, including partnerships with medical institutions to enhance mental health services in remote areas[3]. - The group plans to propose an interim dividend distribution date no later than November 30, 2023, pending shareholder approval[93]. - The company plans to implement an equity incentive plan to motivate senior management and key technical personnel[110]. - The company plans to expand its market presence through strategic acquisitions and new product launches in the upcoming quarters[145]. - Research and development efforts are focused on innovative technologies aimed at enhancing product offerings and customer experience[145]. - The company anticipates a positive outlook for the next fiscal year, with projected revenue growth driven by increased demand and market expansion strategies[145].

Medical Services and Operations - In 2022, the group dispatched a total of 12,172 medical personnel in 1,107 batches, conducting over 3.266 million nucleic acid tests[22]. - The group acquired 100% equity of Leqing Yining Hospital and controlling interest in Jinyun Shuning Hospital, further expanding its market coverage in the elderly medical sector[28]. - The group established Wenzhou Ouhai Yining Elderly Hospital, which officially commenced operations during the reporting period[28]. - The group actively participated in the government's pandemic response, providing efficient medical services and free medication to COVID-19 patients, receiving high recognition from the public[22]. - The group is leveraging the aging population trend to increase its elderly health service offerings while continuing to deepen its focus on mental health services[28]. - The group is focused on the development of a multi-supply public service framework in the healthcare sector, encouraging social forces to participate in service provision[26]. - The company operates a network of medical institutions focused on psychiatric specialty services and elderly rehabilitation services across multiple regions in China[142]. - The company is actively expanding its market presence in Zhejiang Province, particularly in the mental health and elderly care sectors, as part of its strategy to enhance service offerings[195]. - The group maintained strong resilience in its self-owned hospital business in 2022, with mature hospitals showing stable growth[200]. - The number of self-owned hospitals increased to 29 as of December 31, 2022, up from 27 on December 31, 2021[200]. - The total number of operational beds rose to 9,688 as of December 31, 2022, compared to 8,728 on December 31, 2021[200]. - The relocation of Cangnan, Qingtian, and Yongjia hospitals to new sites led to further business volume release[200]. - Some growth-phase hospitals experienced stable development, with significant year-on-year growth in medical business for several hospitals[200]. - The performance of certain growth-phase hospitals was temporarily pressured by the pandemic and medical insurance policies, but core growth drivers remained unchanged[200]. - Advanced management teams were introduced to adjust the operational management models of Beijing Yining Hospital and Hangzhou Yining Hospital, resulting in improved performance[200]. - The group operates an independent internet hospital, Yining Psychological Internet Hospital, as part of its 29 self-owned hospitals[200]. Financial Performance - The company achieved a revenue of RMB 1,484.9 million in 2022, an increase of 14.4% compared to 2021, with hospital operation revenue contributing RMB 1,366.8 million, up 13.6%[32]. - The gross profit margin for self-operated hospitals decreased to 23.9% in 2022 from 25.4% in 2021, while overall gross profit increased to RMB 352.9 million, a rise of 7.3%[32]. - The net profit attributable to shareholders was RMB -24.2 million, but after excluding one-time impacts, the adjusted net profit was RMB 41.1 million[32]. - The net cash generated from operating activities was RMB 227.2 million, reflecting a growth of 17.2% from RMB 193.9 million in 2021[32]. - The company’s self-operated hospital billing revenue reached RMB 1,425.0 million, a 15.9% increase from 2021, driven by an increase in outpatient and inpatient visits[34]. - Inpatient billing revenue was RMB 1,218.3 million, up 15.6% year-on-year, with inpatient bed days increasing by 13.0%[38]. - The proportion of inpatient billing revenue to total self-operated hospital billing revenue was 85.5% in 2022, slightly down from 85.7% in 2021[38]. - The total revenue from treatment and general medical services was RMB 1,119,887 thousand, representing a 16.4% increase from RMB 962,408 thousand in 2021[60]. - The total revenue from drug sales was RMB 305,118 thousand, which is a 14.0% increase from RMB 267,588 thousand in 2021[60]. - The company's financial performance and key performance indicators are detailed in the annual report[172]. Research and Development - The company has obtained 42 software copyrights and 3 invention patents as part of its digital business development efforts[30]. - The company is focusing on the mental health sector, exploring innovative models for product development and user operations[30]. - The group is committed to enhancing the quality of healthcare personnel training and expanding the scale of registered nurses and physicians in short supply[26]. - Research and development expenses totaled RMB 33.0 million, an 18.1% increase from RMB 28.0 million in 2021, representing 2.4% of the group's self-owned hospital operating revenue[75]. - The company is actively promoting the transformation of scientific research achievements and has made significant progress in various major projects related to mental health[51]. Governance and Compliance - The group plans to further refine its corporate governance structure and establish long-term incentive mechanisms to attract and motivate professional management talent[108]. - The company has complied with all relevant national and local laws and regulations in its business operations[145]. - The company has complied with applicable rules, laws, and industry standards without any known violations during the reporting period[163]. - The company has not entered into any management contracts for its entire business or main business during the reporting period[184]. - The company has received no invitations from controlling shareholders for significant transactions during the reporting period[185]. Employee and Talent Development - The group actively focuses on medical talent training and development, establishing an "in-hospital teaching" base to enhance employee professional quality[122]. - The company had a total of 4,196 full-time employees as of December 31, 2022, compared to 3,661 employees in 2021[92]. Cash Flow and Investments - The net cash used in investing activities was RMB 273.6 million, mainly due to the purchase of property, plant, and equipment totaling RMB 236.9 million[87]. - The net cash generated from financing activities was RMB 116.2 million, significantly higher than RMB 33.8 million in 2021[100]. - The company's operating income was RMB 8.6 million, a decrease of RMB 3.3 million compared to 2021, mainly due to a reduction in relocation compensation[96]. - The company's income tax expense decreased to RMB 26.6 million, down 51.5% from RMB 54.8 million in 2021[96]. - As of December 31, 2022, accounts receivable balance was RMB 382.8 million, a 22.8% increase from RMB 311.8 million as of December 31, 2021, primarily due to increased operating income from self-owned hospitals[83]. - As of December 31, 2022, accounts payable increased to RMB 85.8 million from RMB 69.2 million as of December 31, 2021[84]. Incentive Plans - The equity incentive plan has granted a total of 2,460,000 incentive shares, representing 3.2976% of the company's total issued share capital as of the report date[107]. - The grant price for the incentive shares is set at RMB 10.47 per share, aimed at promoting company development and protecting shareholder interests[118]. - The equity incentive plan's lock-up period for granted shares is 48 months, starting from the date of grant[113]. - The incentive shares granted to participants are subject to a lock-up period during which they cannot be transferred, pledged, or disposed of in any other way[132]. - The rights associated with the granted incentive shares, such as dividend rights and voting rights, are not restricted by the lock-up period[132]. Market and Customer Relations - The total revenue contribution from the largest customer and the top five customers was 1.2% and 3.5% of the total revenue, respectively, for the year ended December 31, 2022[168]. - The company has no reliance on major customers due to the unique nature of its psychiatric hospital business and high patient mobility[168]. - The company reported a total of approximately RMB 3.9 million in charitable donations and other contributions during the reporting period[170]. Assets and Liabilities - The company's total liabilities increased to RMB 1,311.9 million in 2022 from RMB 1,097.7 million in 2021, representing a rise of 19.5%[192]. - The group's asset-liability ratio increased to 49.7% as of December 31, 2022, compared to 46.2% as of December 31, 2021, mainly due to the increase in bank borrowings[127]. - The present value of lease payments under irrevocable lease agreements, excluding amounts due within one year, was RMB 171.4 million as of December 31, 2022[103]. - The group has no contingent liabilities or guarantees that would significantly impact its financial position or operations as of December 31, 2022[102].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 截至2022年12月31日止年度業績公告 1 引言 1.1 溫州康寧醫院股份有限公司（「本公司」）之董事會（「董事會」）欣然宣佈本公司 連同其附屬公司（合稱「本集團」或「我們」）截至2022年12月31日止財政年度 「本報告期」）之合併全年業績，連同上一個財政年度（截至2021年12月31日 止財政年度）的數字比較。 1.2 本集團於本報告期的財務報表（「財務報表」）乃按中國企業會計準則編製。 1.3 報告期間，本集團存在前期會計差錯更正需追溯的若干事項，已對2021年的 財務數據進行相應重述，詳情請見本公告「重大事項－前期會計差錯更正」一 節。 ...