Summary of the Conference Call Industry Overview - The overall ophthalmology industry has returned to a relatively stable growth rate, with first-quarter revenue growth in the high single digits [1] Company Performance - The company's ophthalmology revenue growth is estimated to be at or above the industry average, indicating strong performance relative to peers [1]

Summary of Conference Call Transcript Industry Overview - The overall ophthalmology industry has returned to a relatively stable growth rate, with first-quarter revenue growth in the high single digits [1]

Financial Performance - Revenue for 2023 reached RMB 1,369,505 thousand, a 38.3% increase from RMB 990,044 thousand in 2022[23] - Gross profit for 2023 was RMB 621,134 thousand, representing a gross margin of 45.4%, up from 43.9% in 2022[23] - Net profit for 2023 increased to RMB 220,735 thousand, with a net profit margin of 16.1%, compared to 18.5% in the previous year[23] - The adjusted net profit under non-IFRS for 2023 was RMB 223,105 thousand, with an adjusted net profit margin of 16.3%[23][25] - EBITDA grew by 22.6%, reaching RMB 380 million, despite an increase in sales, distribution, and administrative expenses by approximately 46.7%[33] - The total gross profit for the group was RMB 621.1 million, reflecting a 42.9% increase year-over-year[57] - Gross profit increased by 42.9% from RMB 434.7 million to RMB 621.1 million, with the gross profit margin rising from 43.9% to 45.4%[70] Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 2,922,806 thousand, an increase from RMB 2,723,150 thousand in 2022[24] - Total equity for 2023 was RMB 2,378,425 thousand, up from RMB 2,298,473 thousand in 2022[24] - The company reported a total liability of RMB 544,381 thousand for 2023, compared to RMB 424,677 thousand in 2022[24] - Trade receivables rose by 19.5% from RMB 466 million to RMB 557 million, driven by growth in basic ophthalmic services[80] - Other receivables and prepayments increased by 40.9% from RMB 545 million to RMB 768 million, mainly due to increased amounts payable to third parties[81] Market Expansion and Strategy - The company aims to expand its market presence in Northern China, leveraging advanced medical technology and personalized services[27] - The company is strategically focusing on consumer ophthalmic services to leverage the growing demand in the Chinese market[28] - The company plans to expand its network in the North China region and acquire more hospitals by 2024, while also enhancing its presence in the Yangtze River Delta region[61] - The company aims to enhance service quality and patient experience by expanding its medical network and strengthening partnerships with domestic and international collaborators[37] - The company is committed to fulfilling social responsibilities and actively participating in public welfare, focusing on environmental protection and sustainable development[37] Operational Efficiency and Patient Care - The company continues to focus on developing new ophthalmic technologies and services to enhance patient care[27] - The company successfully integrated newly built and acquired hospitals, improving operational efficiency and patient treatment outcomes[32] - The number of patients treated in hospitals exceeded 1.1 million, while the number of patients treated in optical centers reached approximately 120,000[32] - Outpatient visits rose to 1,128,719 in 2023 from 944,523 in 2022, with the average revenue per visit increasing from RMB 626 to RMB 698[39] - Inpatient visits increased significantly from 44,581 in 2022 to 67,258 in 2023, with the average revenue per inpatient visit slightly decreasing from RMB 7,244 to RMB 7,109[39] Employee and Management Structure - The group has a total of 1,428 full-time medical professionals, including 288 physicians, with 252 registered as professional ophthalmologists[58] - The group has implemented a share incentive plan since May 10, 2022, granting a total of 13,396,724 shares to 224 employees, with 51,630 shares lapsing during the reporting period[101] - The group emphasizes systematic training and education programs for employees to maintain high service quality, including internal and external mandatory training[101] - The company has a strong board of independent directors, including Ms. Guo Hongyan and Mr. Li Jianbin, who have extensive experience in law, tax consulting, and investment matters[113][115] - The management team is expected to drive the company's strategic initiatives and financial performance moving forward[116] Corporate Governance and Compliance - The company is focused on enhancing its corporate governance and compliance through the appointment of experienced professionals in key management roles[116] - The audit committee, consisting of three independent non-executive directors, is responsible for providing independent opinions on the effectiveness of the financial reporting process, internal controls, and risk management systems[180] - The company has adopted the standard code of conduct for securities trading by directors and confirmed compliance since January 1, 2023[178] - The company has not reported any significant violations of applicable laws and regulations as of December 31, 2023[126] Shareholder and Capital Structure - The board proposed a final dividend of HKD 0.2208 per share and a special dividend of HKD 0.0767 per share for the year ended December 31, 2023, subject to shareholder approval[95] - The capital structure as of December 31, 2023, consists of 18.6% debt and 81.4% equity, compared to 15.6% debt and 84.4% equity as of December 31, 2022[144] - The company has a gender diversity ratio of approximately 40% female employees and 60% male employees as of December 31, 2023[131] - The company has not established any arrangements for directors to benefit from purchasing shares or debt securities of the company or any other entity[170] Risks and Challenges - The company faces risks including price controls under public health insurance plans, potential patient complaints, and regulatory uncertainties in the ophthalmic service industry[122] - The implementation of the Foreign Investment Law in China may impact the legality and effectiveness of the company's contractual arrangements, posing potential risks[198] - The company has identified several risks associated with its contractual arrangements, including potential penalties from the Chinese government if deemed non-compliant with applicable laws[199] Variable Interest Entities (VIEs) - The variable interest entities (VIEs) generated revenue of RMB 1,110,198 thousand, accounting for 81.1% of total revenue for the year ended December 31, 2023[197] - The company holds a 70% equity interest in the VIE hospitals and controls the remaining equity through contractual arrangements[196] - The total assets of the VIEs amounted to RMB 858,925 thousand, representing 29.4% of total assets as of December 31, 2023[197]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a revenue of 1,369.5 million RMB in 2023, representing a year-on-year growth of 38.3%, with a pre-tax net profit of 299.2 million RMB, up 25.1% year-on-year [1] - The company’s overall gross margin improved to 45.40%, an increase of 1.50 percentage points year-on-year, while the operating cash flow net amount reached 372 million RMB, reflecting a year-on-year growth of 36.26% [1] - The company operates 31 ophthalmology hospitals and 29 optical centers across 7 provinces, with a strong recovery in demand post-pandemic [1] Financial Summary - Revenue for 2023 was 1,370 million RMB, with projections of 1,642 million RMB for 2024, 1,961 million RMB for 2025, and 2,313 million RMB for 2026, indicating growth rates of 20%, 19%, and 18% respectively [3] - The net profit attributable to the parent company for 2023 was 229 million RMB, with forecasts of 269 million RMB for 2024, 308 million RMB for 2025, and 354 million RMB for 2026, showing year-on-year growth of 17%, 15%, and 15% respectively [3] - The company’s return on equity (ROE) is projected to improve from 9.70% in 2023 to 10.77% by 2026 [3] Operational Insights - The company’s ophthalmology services revenue reached 709 million RMB in 2023, growing by 30.64%, with core ophthalmology services revenue at 654 million RMB, up 39.54% [1] - The number of outpatient visits increased significantly to 11.287 million in 2023 from 9.445 million in the previous year, while inpatient visits rose to 67,258 from 44,600 [1] - The company has successfully acquired several hospitals, enhancing its operational capacity and revenue potential [1]

Financial Performance - The group's revenue increased by 38.3% from RMB 990.0 million for the year ended December 31, 2022, to RMB 1,369.5 million for the year ended December 31, 2023[2]. - The group's profit before tax rose by 25.1% from RMB 239.1 million to RMB 299.2 million, with a profit margin decreasing from 24.2% to 21.8%[2]. - The net profit increased by 20.5% from RMB 183.2 million to RMB 220.7 million, with the net profit margin decreasing from 18.5% to 16.1%[2]. - The adjusted net profit under non-IFRS increased by 19.8% from RMB 186.2 million to RMB 223.1 million, with the adjusted net profit margin decreasing from 18.8% to 16.3%[2]. - The gross profit margin improved from 43.9% to 45.4%[4]. - The EBITDA under non-IFRS increased from RMB 307.2 million to RMB 377.3 million[4]. - The total gross profit for the group was RMB 621.1 million, representing a 42.9% increase compared to the previous year[13]. - The group’s profit before tax for 2023 was RMB 228,914,000, compared to RMB 187,752,000 in 2022, indicating an increase of 21.9%[100]. - The company reported a total comprehensive income of RMB 233,055 thousand for the year, slightly down from RMB 240,597 thousand in 2022[74]. Revenue Breakdown - Revenue from consumer ophthalmology services rose by 30.6% from RMB 542.9 million to RMB 709.2 million, driven by increased market expansion and promotional activities post-COVID-19[20]. - Revenue from basic ophthalmology services increased by 46.2% from RMB 447.2 million to RMB 654.0 million, attributed to enhanced marketing activities and improved patient service processes[21]. - The revenue from consumer ophthalmic services accounted for 51.8% of total revenue in 2023, a decrease of approximately 3.0 percentage points from the previous year[11]. - Inpatient services generated revenue of RMB 478,165 thousand in 2023, up from RMB 322,952 thousand in 2022, representing a 48.2% growth[88]. - Outpatient services revenue increased to RMB 788,210 thousand in 2023 from RMB 591,054 thousand in 2022, reflecting a 33.3% rise[88]. - Sales of optical products amounted to RMB 96,861 thousand in 2023, compared to RMB 76,038 thousand in 2022, marking a 27.4% increase[88]. Operational Expansion - The number of ophthalmology hospitals operated by the group increased from 24 to 31, and optical centers increased from 26 to 29[3]. - The group expanded its network to 31 ophthalmic hospitals and 29 optical centers across seven provinces and autonomous regions in China by December 31, 2023[7]. - The group successfully completed acquisitions of multiple ophthalmic facilities, enhancing its footprint in the North China region and interacting with markets in Inner Mongolia, Shanxi, and Ningxia[7]. - The group opened two new hospitals in 2023, further strengthening its service network in the North China region[6]. - The company plans to continue expanding its market presence and enhancing its service offerings in the ophthalmology sector[3]. Expenses and Costs - The total operating expenses increased significantly, with selling and distribution expenses rising from RMB 61.3 million to RMB 105.0 million[4]. - Selling and distribution expenses increased by 71.3% from RMB 61.3 million to RMB 105.0 million, primarily due to increased marketing expenses for newly built and acquired hospitals[25]. - Administrative expenses rose by 37.3% from RMB 162.0 million to RMB 222.5 million, driven by increased employee compensation and office expenses post-pandemic[26]. - The cost of sales rose to RMB 748,371,000 in 2023, up from RMB 555,347,000 in 2022, reflecting a 34.7% increase[93]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.2208 per share for the year ended December 31, 2023, compared to HKD 0.1738 per share for the previous year[3]. - The proposed final dividend for 2023 is HKD 22.08 per share, compared to HKD 17.38 per share in 2022, representing a 27.5% increase[98]. Employee and Workforce - The group employed a total of 1,428 full-time medical professionals, including 288 doctors, 616 nurses, and 524 other professionals as of December 31, 2023[14]. - As of December 31, 2023, the company has a total of 2,597 full-time employees, with 1,428 being hospital professionals, 94 optometry center professionals, and 1,075 administrative and financial staff[59]. - The company has established a systematic training and education program for its employees to ensure high-quality service delivery[62]. - The company has a performance-based bonus system and regularly evaluates employee performance for salary reviews and promotions[61]. Financial Position and Assets - Total assets as of December 31, 2023, were RMB 4,309,732 thousand, compared to RMB 4,093,600 thousand in 2022, indicating a growth of 5.3%[75]. - Non-current assets increased to RMB 1,193,141 thousand from RMB 908,023 thousand, a rise of 31.4% year-over-year[75]. - The company’s cash and cash equivalents decreased to RMB 463,437 thousand from RMB 944,727 thousand, a decline of 50.0%[75]. - The company’s total equity increased to RMB 2,378,425 thousand from RMB 2,298,473 thousand, reflecting a growth of 3.5%[76]. Risk Management - The group faces foreign exchange risks primarily related to fluctuations in the Hong Kong dollar, as it conducts business mainly in China[46]. - The group faces interest rate risk from interest-bearing borrowings, with fixed-rate borrowings exposing it to fair value interest rate risk and floating-rate borrowings exposing it to cash flow interest rate risk[47]. - The group has established credit policies and continuously monitors credit risks associated with counterparties unable to fulfill obligations[48]. - The company maintains strict control over outstanding receivables and has a credit risk management department to minimize credit risk[104]. Future Plans and Strategies - The company is focused on enhancing its brand positioning and market reputation in North China to increase its market share[16]. - The group plans to continue expanding its network in North China and aims to acquire more hospitals by 2024[16]. - The company is focused on expanding its operations and developing new strategies to adapt to changing market conditions[57]. Compliance and Governance - The audit committee, consisting of three independent non-executive directors, provides independent opinions on the effectiveness of the group's financial reporting, internal controls, and risk management systems[53]. - The company’s internal controls and financial reporting matters were reviewed and deemed compliant with applicable laws and regulations[64]. - The company has adopted the standards for directors' securities trading as per the listing rules and confirms compliance since January 1, 2023[52].

朝聚眼科（2219.HK） 2024-2-28 星期三 | --- | --- | |------------|-------------| | | | | 目标价： | 7.43 港元 | | 现 价： | 3.86 港元 | | 预计升幅 : | 92% | | --- | --- | |--------------------------------|---------------| | | | | 日期 | 2024-2-28 | | 收盘价（港元） | 3.86 | | 总股本（亿股） | 7.08 | | 总市值（亿港元） | 27 | | 净资产（亿元） | 23 | | 总资产（亿元） | 28.3 | | 52 周高低（港元） | 6.05/3.50 | | 每股净资产（元） | 3.25 | | 数据来源： Wind 、国元证券经纪 | ( 香港 ) 整理 | ➢ 公司业绩快速增长： 公司是华北眼科龙头公司，成立于 1988 年，于 2010 年之后，不断拓展新的 区域，业绩快速增长，23 年中期营业额约为人民币 6.92 亿元，同比增加 30%，净利润为 1.47 亿元，同比增长 44. ...

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 692.7 million, representing a 30.0% increase from RMB 532.7 million in 2022[6]. - Gross profit for the same period was RMB 322.9 million, up 32.2% from RMB 244.3 million in 2022[6]. - Net profit increased by 44.4% to RMB 146.9 million compared to RMB 101.8 million in the previous year[6]. - The gross margin improved to 46.6% from 45.9% in the previous year, while the net profit margin increased to 21.2% from 19.1%[6]. - The group's revenue increased by 30% from RMB 532.7 million for the six months ended June 30, 2022, to RMB 692.7 million for the six months ended June 30, 2023, driven by the recovery in ophthalmic service demand and increased patient visits[14]. - The group reported a gross profit margin for the first half of 2023, with specific figures to be detailed in the financial breakdown[26]. - Gross profit increased by 32.2% from RMB 244.3 million to RMB 322.9 million, with a gross margin improvement from 45.9% to 46.6%[37]. - Other income and gains surged by 107.7% from RMB 19.5 million to RMB 40.5 million, primarily due to increased interest income[38]. - Net profit increased by 44.3% from RMB 101.8 million to RMB 146.9 million, with a net profit margin rising from 19.1% to 21.2%[44]. - The company reported a total comprehensive income of RMB 164,608 thousand for the period, compared to RMB 130,253 thousand in the previous year, reflecting a 26% growth[102]. - The company reported a net profit of RMB 150,613,000 for the six months ended June 30, 2023, compared to RMB 103,598,000 for the same period in 2022, representing an increase of approximately 45.3%[105]. - Total comprehensive income for the period was RMB 168,309,000, up from RMB 130,253,000 in the previous year, indicating a growth of about 29.2%[107]. Operational Highlights - Outpatient visits increased to 531,714 in the first half of 2023, up from 439,780 in the same period of 2022, representing a growth of approximately 20.9%[12]. - Inpatient visits increased significantly to 32,922, up from 22,510, reflecting a growth of approximately 46.4%[12]. - The group's consumer ophthalmic services accounted for 52.1% of total revenue, while basic ophthalmic services made up 47.9%[15]. - The introduction of the TECNIS SYNERGY™ intraocular lens has shown positive results, enhancing patient conversion rates and retention for further treatments[17]. - The group operates a network of 26 ophthalmic hospitals and 27 optical centers across six provinces and regions in China, expanding its reach and service capabilities[11]. - The group has expanded its optical center network based on market research and existing customer demographics[23]. - The group operates hospitals classified by the National Health Commission, with the highest level being Class III hospitals[21]. - The group has strategically placed optical centers near hospitals to provide vision screening services[23]. - The company operates primarily in China, with no single customer contributing 10% or more to total revenue, indicating a diversified customer base[117]. Strategic Initiatives - The company plans to focus more on consumer eye care services, leveraging its competitive advantages in advanced technology and equipment[9]. - Chaoju Eye Care Holdings Limited aims to enhance brand recognition and customer loyalty through its capability in producing proprietary medications[9]. - The company operates a cluster model to improve market penetration, operational efficiency, and profitability[9]. - Chaoju Eye Care Holdings Limited is positioned to capitalize on the growing demand for eye care services in China[9]. - The company aims to enhance its market position in key regions such as Zhejiang Province and develop specialty ophthalmology hospitals[32]. - The company plans to strengthen its management and communication with regulatory bodies to enhance corporate governance[32]. - The company continues to explore new strategies for market expansion and product development in the healthcare sector[23]. - The company is expanding its market presence in Eastern China, with plans to open three new clinics by the end of 2023[167]. - A strategic acquisition of a local ophthalmology clinic is in progress, expected to be finalized in Q4 2023, which will enhance service capacity[166]. - Research and development efforts are focused on innovative glaucoma treatments, with clinical trials expected to commence in early 2024[168]. Financial Position - Total assets as of June 30, 2023, reached RMB 2,832.3 million, a 4.0% increase from RMB 2,723.2 million at the end of 2022[6]. - The company reported a cash and cash equivalents balance of RMB 413.9 million, down 56.2% from RMB 944.7 million[6]. - Trade receivables increased by 41.2% from RMB 466 million as of December 31, 2022, to RMB 658 million as of June 30, 2023, primarily due to growth in basic ophthalmic services[47]. - Cash and cash equivalents decreased by RMB 530.8 million for the six months ended June 30, 2023, primarily due to net cash outflows from investing activities of RMB 589.4 million[50]. - The total capital commitments as of June 30, 2023, amounted to approximately RMB 72.6 million, significantly up from RMB 10.0 million as of December 31, 2022[54]. - The company is in a net cash position as of June 30, 2023, making the debt-to-equity ratio not applicable[55]. - The company's capital structure consists of 17.9% debt and 82.1% equity, compared to 15.6% debt and 84.4% equity as of December 31, 2022[71]. - The company has a total of 1,316 full-time medical professionals, including 262 physicians, 598 nurses, and 456 other professionals[28]. - The company reported a foreign exchange gain of RMB 179,000, contrasting with a loss of RMB 991,000 in the previous year, indicating a positive shift in foreign exchange impact[108]. Employee and Governance - The company has implemented adequate internal control procedures to ensure that the purchase of structured deposit products does not affect its operating capital or business operations[58]. - The company has adopted a share incentive plan to attract and retain talent, effective from May 10, 2022[64]. - The company has implemented a systematic training and education program for employees to ensure high-quality service delivery[64]. - The company has complied with all applicable corporate governance code provisions, except for the separation of the roles of Chairman and CEO[66]. - The total compensation for key management personnel for the six months ended June 30, 2023, was RMB 3,688,000, a decrease of 2.6% from RMB 3,788,000 in the same period of 2022[152]. - The performance bonus for key management personnel increased to RMB 909,000, up 31.8% from RMB 690,000 in the previous year[152]. - The company aims to enhance employee motivation through a domestic employee shareholding platform established in April 2020[134]. Future Outlook - The company expects a revenue growth of 20% for the full year 2023, driven by increased demand for ophthalmic services[167]. - The company plans to invest HKD 100 million in technology upgrades over the next two years to enhance service delivery and operational efficiency[168].

Financial Performance - The group's revenue increased by 30.0% from RMB 532.7 million in the same period of 2022 to RMB 692.7 million for the six months ended June 30, 2023[2]. - Gross profit rose by 32.2% from RMB 244.3 million in 2022 to RMB 322.9 million, with a gross margin improvement from 45.9% to 46.6%[2]. - Profit before tax increased by 40.7% from RMB 131.2 million to RMB 184.6 million, with a profit before tax margin rising from 24.6% to 26.6%[2]. - Net profit grew by 44.3% from RMB 101.8 million to RMB 146.9 million, with a net profit margin increasing from 19.1% to 21.2%[2]. - Adjusted net profit under non-IFRS increased by 32.1% from RMB 103.25 million to RMB 136.5 million, with an adjusted net profit margin rising from 19.4% to 19.7%[2]. - Basic earnings per share increased by 40.0% from RMB 0.15 to RMB 0.21[2]. Operational Growth - The number of ophthalmology hospitals operated by the group increased from 18 to 26, and optical centers increased from 25 to 27[2]. - Outpatient visits rose to 531,714 in the first half of 2023, compared to 439,780 in the same period of 2022, representing a growth of approximately 20.9%[7]. - Inpatient visits increased significantly from 22,510 to 32,922, marking a growth of approximately 46.2%[7]. - The optical center customer visits increased to 58,317, up from 55,339, indicating a growth of approximately 5.6%[7]. - The group expanded its network to 26 hospitals and 27 optical centers across six provinces or autonomous regions in China as of June 30, 2023[6]. Revenue Breakdown - The consumption ophthalmology services accounted for 52.1% of total revenue, amounting to RMB 361.1 million, while basic ophthalmology services contributed 47.9% with RMB 331.6 million[9]. - Revenue from consumer ophthalmology services rose by 24.1% from RMB 291.1 million to RMB 361.1 million, driven by increased marketing efforts and improved customer management[22]. - Revenue from basic ophthalmology services surged by 37.2% from RMB 241.7 million to RMB 331.6 million, attributed to enhanced marketing activities and improved patient service processes[23]. Cost and Expenses - The group's sales cost increased by 28.2% from RMB 288.4 million for the six months ended June 30, 2022, to RMB 369.8 million for the same period in 2023, primarily due to business expansion and additional costs related to newly built and acquired hospitals and optical centers[24]. - Sales and distribution expenses increased by 95.1% from RMB 26.3 million to RMB 51.3 million, primarily due to increased marketing expenses for newly built and acquired hospitals[27]. - Administrative expenses rose by 19.3% from RMB 92.7 million to RMB 110.6 million, mainly due to increased employee salaries and travel expenses following the easing of pandemic restrictions[28]. Investment and Financing - The group has a total of 1,316 full-time medical professionals, including 262 doctors, 598 nurses, and 456 other professionals as of June 30, 2023[15]. - The company issued 137,500,000 shares at HKD 10.60 per share, raising a net amount of approximately HKD 1.599 billion from the global offering[56]. - 35.8% of the net proceeds (HKD 572.4 million) will be used for establishing new hospitals and upgrading existing ones, expected to be utilized by June 2024[57]. - 44.8% of the net proceeds (HKD 716.4 million) is allocated for acquiring hospitals in new markets with high demand for ophthalmic services, also expected to be used by June 2024[57]. Market Outlook - The Chinese ophthalmic medical service market is expected to grow from RMB 730 billion in 2015 to RMB 2,231 billion by 2024, with a compound annual growth rate of 15.0%[17]. - The North China ophthalmic medical service market is projected to increase from RMB 132 billion in 2015 to RMB 337 billion by 2024, with a compound annual growth rate of 12.5%[17]. - The group plans to enhance marketing efforts and optimize customer management to increase market share and customer loyalty[11]. - The group aims to strengthen its market position in key areas such as Zhejiang Province and develop specialized ophthalmology hospitals[19]. Corporate Governance and Compliance - The company has adopted the standard code of conduct for securities trading by directors and confirmed compliance since January 1, 2023[54]. - The group has established credit policies to monitor and manage credit risks effectively[51]. - The group is focused on establishing a robust ESG framework to contribute positively to society[20]. Cash Flow and Liquidity - Cash and cash equivalents decreased by RMB 530.8 million, with net cash inflow from operating activities at RMB 194.8 million and net cash outflow from investing activities at RMB 589.4 million[38]. - The net cash flow from investing activities was negative RMB 589.4 million, mainly due to the purchase of financial assets and fixed deposits[38]. - The group has maintained a sufficient level of cash and cash equivalents to meet its debt obligations and future capital expenditures[52].

Financial Performance - The company's revenue for 2022 was RMB 990,044,000, a slight decrease from RMB 997,787,000 in 2021[21] - Gross profit for 2022 was RMB 434,697,000, resulting in a gross margin of 43.9%, down from 45.0% in 2021[21] - Net profit for 2022 increased to RMB 183,196,000, with a net profit margin of 18.5%, compared to 15.8% in 2021[21] - The adjusted net profit for 2022 was RMB 186,174,000, reflecting a stable performance compared to RMB 185,902,000 in 2021[21] - The total gross profit for the group was RMB 434.7 million, a decrease of 3.1% compared to the previous year[51] - Net profit increased by 16.2% from RMB 157.6 million to RMB 183.2 million, with the net profit margin rising from 15.8% to 18.5%[69] - Other income and gains increased significantly by 236.9% from RMB 14.9 million to RMB 50.2 million, mainly due to increased interest income[63] - Selling and distribution expenses rose by 30.1% from RMB 47.1 million to RMB 61.3 million, driven by increased marketing and advertising costs[64] - Administrative expenses decreased by 8.6% from RMB 177.3 million to RMB 162.0 million, mainly due to the absence of non-recurring listing expenses[65] Assets and Equity - Total assets as of December 31, 2022, were RMB 2,723,150,000, up from RMB 2,506,514,000 in 2021[22] - The total equity as of December 31, 2022, was RMB 2,298,473,000, an increase from RMB 2,128,406,000 in 2021[22] - As of December 31, 2022, the company's cash and structured deposits amounted to approximately RMB 1.8 billion, with a net asset value of about RMB 2.3 billion[29] - Cash and cash equivalents, along with financial assets at fair value, totaled approximately RMB 1,763,100,000 as of December 31, 2022[74] Market Strategy and Expansion - The company plans to focus more on consumer eye care services, leveraging its competitive advantages in the market[24] - The company aims to increase its market penetration and operational efficiency through a cluster operation model[24] - The company plans to open a new eye hospital in Zhangjiakou in the second quarter of 2023, aiming to enhance service capacity[33] - The company plans to accelerate mergers and acquisitions to enhance its market share and competitiveness over the next two years[31] - The group plans to continue expanding its network, with new hospitals expected to open in Zhangjiakou and other locations in 2023[56] - The group aims to strengthen its market position in key regions such as the Yangtze River Delta while developing specialty ophthalmic hospitals[56] Patient Services and Operations - The total number of patient visits to the company's hospitals was approximately 990,000, while the optical centers had around 100,000 visits[29] - In 2022, the company provided over 250,000 medical services nationwide, including 980,000 vision health screenings for school students[32] - The number of outpatient visits increased to 944,523 in 2022 from 887,335 in 2021, representing a growth of approximately 6.4%[36] - The company implemented various measures to optimize patient care and increase operational capacity during the pandemic[28] - The group has increased outpatient surgery ratios and bed turnover rates to address delayed patient visits due to pandemic restrictions[40] Revenue Breakdown - Revenue from consumer ophthalmic services and basic ophthalmic services was approximately RMB 540 million and RMB 450 million, respectively[29] - Revenue from consumer ophthalmic services reached RMB 542.9 million, accounting for 54.8% of total revenue in 2022, up from 51.8% in 2021[38] - Revenue from basic ophthalmic services decreased by 6.8% from RMB 479.7 million to RMB 447.2 million, primarily due to pandemic-related restrictions affecting patient treatments[60] Investments and Acquisitions - The company successfully acquired controlling stakes in four hospitals in Tangshan, Hebei, enhancing its market presence in the eastern region of Hebei[30] - The company invested RMB 100 million in a healthcare industry fund, which focuses on non-listed equity in high-growth innovative companies[31] - The group acquired Tangshan Jidong Hospital, Luanzhou Jidong Hospital, Luanan Jidong Hospital, and Yutian Jidong Hospital in November 2022, adding significant capacity to its operations[45] Employee and Management - The group has a total of 1,182 full-time medical professionals, including 242 physicians, 520 nurses, and 420 other professionals[52] - The group had 2,162 full-time employees, including 1,182 hospital professionals and 82 optical center professionals[138] - The management team has over 30 years of combined experience in the healthcare sector, ensuring strong leadership and strategic direction[107] Corporate Governance and Compliance - The audit committee has reviewed the financial reporting and internal controls, confirming that the annual performance for the year ending December 31, 2022, complies with applicable accounting standards and regulations[167] - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and risk management[166] - The independent non-executive directors confirmed their independence for the period from January 1, 2022, to December 31, 2022[149] Social Responsibility and Community Engagement - The company conducted 45 free medical consultations in the Hangzhou community and provided free glasses to underprivileged students[32] - The company aims to continue providing high-quality medical services to disadvantaged families, adhering to the principle of early detection, diagnosis, and treatment[32] - The company made charitable donations totaling approximately RMB 6.2 million for the year ended December 31, 2022[200] Risks and Challenges - The company faces risks including price controls under public health insurance plans and potential patient complaints leading to legal disputes[113] - The company may experience short-term financial fluctuations due to the opening of new hospitals or optical centers[113] - The company is subject to potential regulatory changes that could impact the future operations of the variable interest entity hospitals[184] Future Outlook - The company has set a future outlook with a revenue guidance of $600 million for the next fiscal year, indicating a projected growth of 20%[107] - New product launches are expected to contribute an additional $50 million in revenue, with a focus on innovative eye care solutions[108] - The company aims to improve operational efficiency, targeting a 5% reduction in operational costs through streamlined processes[109]

Financial Performance - The group's revenue decreased by 0.8% from RMB 997.8 million in the year ended December 31, 2021, to RMB 990.0 million in the year ended December 31, 2022[2]. - The group's profit before tax increased by 13.5% from RMB 210.6 million in the year ended December 31, 2021, to RMB 239.1 million in the year ended December 31, 2022, with a profit margin of 24.2%[2]. - The group's net profit rose by 16.2% from RMB 157.6 million in the year ended December 31, 2021, to RMB 183.2 million in the year ended December 31, 2022, with a net profit margin of 18.5%[2]. - The adjusted net profit under non-IFRS increased by 0.2% from RMB 185.9 million in the year ended December 31, 2021, to RMB 186.2 million in the year ended December 31, 2022, with an adjusted net profit margin of 18.8%[2]. - Basic earnings per share increased by 3.8% from RMB 0.26 in the year ended December 31, 2021, to RMB 0.27 in the year ended December 31, 2022[2]. Revenue Breakdown - Revenue from consumer ophthalmic services reached RMB 542.9 million, accounting for 54.8% of total revenue in 2022, up from 51.8% in 2021[11]. - Revenue from basic ophthalmic services was RMB 447.2 million, representing 45.2% of total revenue, down from 48.1% in the previous year[11]. - Revenue from consumer ophthalmic services increased by 5.0% from RMB 517.2 million to RMB 542.9 million, primarily due to an increase in patient volume during non-restricted periods of the COVID-19 pandemic[26]. - Revenue from basic ophthalmic services decreased by 6.8% from RMB 479.7 million to RMB 447.2 million, mainly due to pandemic prevention measures that limited patient access to treatments[27]. Operational Expansion - The number of ophthalmology hospitals operated by the group increased from 24 as of December 31, 2021, to 26 as of December 31, 2022[2]. - The group expanded its network by adding five new physical entities, including hospitals and optical centers, in 2022[6]. - The group completed the acquisition of four hospitals in Tangshan, enhancing its presence in the North China region and facilitating synergy with existing facilities[7]. - As of December 31, 2022, the group operated a network of 24 hospitals and 26 optical centers across five provinces and regions in China[8]. - The group plans to continue expanding its network, with hospitals expected to open in Zhangjiakou and other locations in 2023[22]. Customer Engagement and Services - Customer visits at optical centers decreased to 101,956 in 2022 from 119,040 in 2021[9]. - The average spending per outpatient visit decreased from RMB 647 in 2021 to RMB 626 in 2022[9]. - The average spending per inpatient visit decreased from RMB 7,415 in 2021 to RMB 7,244 in 2022[9]. - The average selling price at optical centers increased from RMB 692 in 2021 to RMB 746 in 2022[9]. Cost and Expenses - Selling and distribution expenses rose by 30.1% from RMB 47.1 million to RMB 61.3 million, attributed to increased marketing and advertising expenses in key regions[31]. - Administrative expenses decreased by 8.6% from RMB 177.3 million to RMB 162.0 million, mainly due to the absence of non-recurring listing expenses in the current year[32]. - The group's gross profit decreased by 3.1% from RMB 448.7 million to RMB 434.7 million, with the gross profit margin declining from 45.0% to 43.9%[29]. Employee and Workforce - As of December 31, 2022, the group has a total of 1,182 full-time medical professionals, including 242 doctors, 520 nurses, and 420 other professionals[17]. - The employee distribution includes 242 doctors (11.19%), 520 nurses (24.05%), and 420 other professionals (19.43%) as of December 31, 2022[70]. - The group has a total of 2,162 full-time employees as of December 31, 2022, with 1,182 being hospital professionals[69]. Financial Position and Assets - The group's cash and bank balances are essential for funding operations and expansion plans, including upgrading existing ophthalmology hospitals and constructing new ones[42]. - The net cash flow from operating activities for the year ended December 31, 2022, was RMB 273.4 million, while the net cash flow from investing activities was RMB (464.8) million[43]. - The company's total equity rose to RMB 2,298,473 thousand in 2022, up from RMB 2,128,406 thousand in 2021, indicating an increase of 8%[86]. - The company's inventory increased to RMB 52,415 thousand in 2022 from RMB 34,900 thousand in 2021, a growth of 50%[84]. Governance and Compliance - The company emphasizes the importance of corporate governance and compliance with international financial reporting standards[118]. - The audit committee consists of three independent non-executive directors, providing independent opinions on financial reporting and internal controls[63]. - The company established an Environmental, Social, and Governance (ESG) committee to enhance its governance standards and social recognition[76]. Future Outlook - The company anticipates that the negative impact of COVID-19 on its business will begin to diminish in the first quarter of 2023 as control measures are lifted[19]. - The company is focused on expanding its market presence and enhancing its product offerings in the ophthalmology sector[116]. - The company is actively pursuing new strategies for growth, including potential mergers and acquisitions in the healthcare industry[117].