[Financial Summary](index=1&type=section&id=財務摘要) The company reported a 7.3% revenue decrease to RMB 147.9 million and a 42.1% net profit decrease to RMB 24.5 million, despite growth in in-hospital business and R&D investment Key Financial Metrics for H1 2025 | Metric | H1 2025 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | | Revenue | 147.9 | -7.3% | | In-hospital Business Revenue | 25.1 | +8.7% | | Cost of Sales | 65.8 | -7.0% | | Gross Profit | 82.1 | -7.5% | | Gross Margin | 55.5% | -0.2 percentage points | | Net Profit | 24.5 | -42.1% | | R&D Expenses | 33.0 | +14.4% | | Contracted Amount Expected to be Delivered This Year | 417.5 | +11.0% | | In-hospital Business Contracted Amount Expected to be Delivered This Year | 70.7 | +44.0% | | Number of Partner Clients | 965 | +11.0% | [Performance and Strategic Overview](index=2&type=section&id=業績表現與戰略概覽) The company maintains an "AI-driven" strategy, adjusting its business structure to focus on high-potential areas and expanding its network to build a comprehensive intelligent platform across healthcare scenarios [1. Performance Highlights](index=2&type=section&id=1.%20業績表現) Strategic business adjustments led to a 7.3% revenue decline, yet Smart Retail Cloud client growth, increased contracted amounts, strong in-hospital business, and expanded R&D investment were observed - The company's main business revenue decreased by **7.3%** year-on-year to **RMB 147.9 million**, primarily due to strategic business structure adjustments, focusing on future high-potential businesses, and transforming the health management business's profit model towards post-examination management[7](index=7&type=chunk) - The number of Smart Retail Cloud clients increased from 519 in the same period of 2024 to **676** in the current period, a growth of **30.3%**[7](index=7&type=chunk) - As of the announcement date, the contracted amount expected to be delivered this year is approximately **RMB 417.5 million**, a year-on-year increase of approximately **11.0%**[8](index=8&type=chunk) - In-hospital business revenue totaled **RMB 25.1 million**, a year-on-year increase of approximately **8.7%**; the contracted amount for in-hospital business expected to be delivered this year is approximately **RMB 70.7 million**, a year-on-year increase of approximately **44.0%**[9](index=9&type=chunk) - R&D expenses increased by approximately **14.4%** year-on-year, with a focus on computing infrastructure and expanding high-level R&D talent, including several AI experts[10](index=10&type=chunk) - The total number of partner clients reached **965**, a year-on-year increase of approximately **11.0%**; cumulatively covering **2,968** pharmaceutical retail enterprises, over **170,000** pharmacies, over **530** hospitals, and over **680** physical examination institutions[11](index=11&type=chunk) [2. Analysis of Principal Business Operations](index=4&type=section&id=2.%20主要業務經營分析) Adhering to an "AI-driven" strategy, the company developed a vertical intelligent platform across five healthcare scenarios, launching intelligent agents in pharmacy, commercial, and health management, while optimizing To B, To C, and To R businesses through strategic adjustments [(1) Adhering to the "AI-Driven" Core Development Strategy and Accelerating the Construction of a Vertical Intelligent Platform for the Healthcare Industry](index=4&type=section&id=%281%29%20堅持實施「AI驅動」核心發展戰略%2C%20加速構建醫療健康產業垂類智能體平台) The company implements an "AI-driven" strategy, developing a five-scenario intelligent platform with agents launched in pharmacy, commercial, and health management, including a listed AI report interpretation agent - The company has built a vertical intelligent platform for the healthcare industry covering five major scenarios: medical, pharmacy, commercial, health management, and R&D[12](index=12&type=chunk) - Intelligent agents have been launched in pharmacy, commercial, and health management scenarios, with the pharmacy scenario featuring an operational insight intelligent agent, the commercial scenario a consumer insight intelligent agent, and the health management intelligent agent applied to Zhuomu Bird AI-MDT report interpretation[13](index=13&type=chunk) - The 'Zhuomu Bird AI Report Interpretation Intelligent Agent' has been listed on the Guangzhou Data Exchange; the 'Zhuomu Bird Doctor Intelligent Agent' was selected as a typical case for Guangzhou's 'AI+' initiative[13](index=13&type=chunk) [(2) Deeply Cultivating Mature Business Foundations and Expanding New Businesses for Development](index=5&type=section&id=%282%29%20深耕成熟業務基本盤%2C%20拓展新業務謀發展) The company pursues synergistic To B, To C, and To R business development, offering diverse digital solutions and an innovation platform, with varied revenue performance across segments, including growth in Smart Decision and Medical Clouds, and declines in Smart Retail and Health Management Clouds [Client Dimension Analysis](index=5&type=section&id=客戶維度分析) The company extends its core capabilities to To B, To C, and To R segments, offering digital solutions for suppliers and retailers, personalized health management, and an innovation platform for drugs and devices - To B segment: Consolidates outpatient advantages, expands inpatient innovation, and provides digital intelligence decision-making, retail, and medical solutions, having launched the Lingxi Consumer Insight Intelligent Agent[15](index=15&type=chunk)[16](index=16&type=chunk) - To B segment: Digital intelligence retail solutions, centered on the SIC system, serve pharmaceutical retail enterprises, launching pharmacy operational insight intelligent agents, cumulatively serving **2,968** pharmaceutical retail enterprises, managing over **255,000** pharmacy staff, and over **310 million** members[18](index=18&type=chunk) - To B segment: Digital intelligence medical solutions have cumulatively served over **300,000** patients in patient management services; the intelligent iMDT platform has over **20,000** registered oncologists and has organized over **1,200** MDT consultation meetings[20](index=20&type=chunk) - To C segment: Provides 'light and heavy' digital intelligence services, with the light type being Zhuomu Bird AI-MDT solution from Smart Health Management Cloud, which has reached approximately **230** hospitals and **680** private physical examination centers, cumulatively serving over **9.8 million** patient visits[21](index=21&type=chunk)[22](index=22&type=chunk) - To C segment: The heavy type is Zhuomu Bird Oncology Multi-Disciplinary Diagnosis and Treatment Platform from Smart Medical Cloud, providing online multi-disciplinary, personalized, and precise consultation for oncology patients[23](index=23&type=chunk) - To R segment: Extends B-side capabilities, focuses on R&D, and builds a digital intelligence empowerment platform for the entire lifecycle of innovative drugs and medical devices, covering the entire process from clinical development to post-market sales[24](index=24&type=chunk) [Revenue Performance by Business Segment](index=10&type=section&id=各業務板塊收入表現) Smart Decision Cloud revenue grew by 5.1%, Smart Medical Cloud performed well, but Smart Retail Cloud and Smart Health Management Cloud revenues declined, with the latter down 37.5% due to profit model changes Revenue Performance by Business Segment | Business Segment | H1 2025 (RMB million) | YoY Change (%) | Number of Clients Served | Repurchase Rate | | :--- | :--- | :--- | :--- | :--- | | Smart Decision Cloud | 71.7 | +5.1% | 360 | 98.3% | | Smart Retail Cloud | 48.5 | Decline (not specified) | 676 | 81.9% | | Smart Health Management Cloud | 10.6 | -37.5% | - | - | | Smart Medical Cloud | 17.2 | Good (specific growth rate not specified) | - | 96.0% | [(3) AI Renews Core Competitiveness, Continuously Building a Solid Moat](index=11&type=section&id=%283%29%20AI煥新核心競爭力%2C%20持續構築堅實護城河) The company leverages an "AI Foundation — Ecosystem Empowerment — Cooperation Network" strategy, utilizing large AI models and industry events to build a robust data foundation, diverse application scenarios, and extensive partnerships, driving intelligent product evolution and industry empowerment [AI Foundation and Intelligent Agent Platform](index=11&type=section&id=AI底座與智能體平台) Leveraging "Zhuomu Bird" and "Tiangong-1" large AI models, the company built a comprehensive model matrix and intelligent agent platform, achieving rapid deployment and market recognition across diverse healthcare scenarios - The company has built a large model matrix, including data governance platforms, intelligent agent development platforms, text models, and multimodal models, driving product upgrades to full-scenario intelligent agents in the vertical healthcare industry[29](index=29&type=chunk) - Possesses a strong data foundation with a total weight parameter scale of **70 billion**, covering millions of public data, tens of millions of de-identified data, and millions of labeled data, with machine automatic cleaning rates exceeding **97%** and accuracy exceeding **99%**[29](index=29&type=chunk) - Rich application scenarios cover the entire 'medical-pharmaceutical-patient' process, including pharmaceutical enterprise decision-making, retail pharmacies, physical examinations, medical record governance, medical record quality control, and C-end health assistants, cumulatively empowering **20 million** physical examination visits[30](index=30&type=chunk) - The Zhongkang Intelligent Agent Platform integrates core capabilities such as text generation, image/video generation, and data analysis, comprising three modules: Intelligent Agent Center, Intelligent Agent Creation Platform, and Intelligent Agent Operations Backend, supporting bidirectional internal and external empowerment[31](index=31&type=chunk) - The 'Zhuomu Bird Doctor Intelligent Agent' was selected as a typical case for Guangzhou's 'AI+' initiative, the 'Zhuomu Bird AI Report Interpretation Intelligent Agent' was listed on the Guangzhou Data Exchange, and the Pharmacy Operational Insight Intelligent Agent has partnered with leading enterprises[32](index=32&type=chunk) [Ecosystem Empowerment and Industry Cooperation Network](index=13&type=section&id=生態賦能與產業合作網絡) The company established a comprehensive ecosystem empowerment system and extensive industry cooperation network, leveraging its industry research institute and major events to provide strategic support and foster partnerships across healthcare sectors - Zhongkang Industry Research Institute, as the 'ecosystem brain' for industry insights, produces forward-looking, leading, and practical research results and industry insight reports, consolidating its authoritative position in the industry[33](index=33&type=chunk) - The ecosystem empowerment system provides comprehensive, full-chain solutions including strategic planning, research services, resource linkage, market expansion, brand building, industry activities, operational empowerment, and capital operations[34](index=34&type=chunk) - The hosted Xipu Conference has been successfully held for **18** sessions, with over **8,000** delegates and over **60,000** attendees; the Xiding Conference has been successfully held for **10** sessions, with over **8,000** delegates and over **30,000** attendees[34](index=34&type=chunk) - The industry cooperation network is extensive, with partnerships established with over **965** enterprise clients during the reporting period[35](index=35&type=chunk) - The pharmaceutical retail pharmacy cooperation network cumulatively covers **2,968** pharmaceutical retail enterprises, over **170,000** pharmacy stores, managing over **255,000** pharmacy staff, and over **310 million** pharmacy members[36](index=36&type=chunk) - The health management cooperation network cumulatively reached approximately **230** hospitals and **680** physical examination centers, serving over **9.8 million** patients; the medical cooperation network has partnered with over **300** hospitals through patient management services, with over **20,000** registered oncologists on the iMDT platform[36](index=36&type=chunk) [Financial Performance Analysis](index=16&type=section&id=財務表現分析) Revenue and gross profit declined due to strategic adjustments and pricing, while other income decreased significantly from lower interest, grants, and exchange losses; increased R&D costs, despite reduced administrative expenses, led to a substantial drop in profit before tax and profit for the period [Revenue](index=16&type=section&id=收入) Group revenue decreased by 7.3% to RMB 147.9 million, mainly due to strategic business restructuring and a shift in the health management business's profit model Revenue Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 147.9 | 159.5 | -7.3% | - The decrease in revenue was primarily due to the company's strategic adjustment of its business structure, focusing on future high-potential businesses, and transforming the health management business's profit model towards post-examination management[37](index=37&type=chunk) [Cost of Sales](index=16&type=section&id=銷售成本) Cost of sales decreased by 7.0% to RMB 65.8 million, driven by business structure optimization and efficiency gains from the BrainyAI platform Cost of Sales Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 65.8 | 70.7 | -7.0% | - The decrease in cost of sales was primarily due to the Group's optimized business structure and the application of the BrainyAI platform to improve overall work efficiency, achieving cost reduction and efficiency gains[38](index=38&type=chunk) [Gross Profit and Gross Margin](index=16&type=section&id=毛利及毛利率) Gross profit decreased by 7.5% to RMB 82.1 million, with gross margin slightly down by 0.2 percentage points to 55.5%, primarily due to product pricing adjustments aimed at expanding customer reach Gross Profit and Gross Margin Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 82.1 | 88.8 | -7.5% | | Gross Margin | 55.5% | 55.7% | -0.2 percentage points | - The decrease in gross profit was mainly due to the emergence of two major markets, innovative drugs and non-pharmaceutical products, leading to a strategy of adjusting and lowering some product unit prices to expand customer coverage[39](index=39&type=chunk) [Other Income and Gains](index=16&type=section&id=其他收入及收益) Other income and gains significantly decreased by 44.0% to RMB 13.1 million, primarily due to reduced interest income, exchange losses, and lower government grants Other Income and Gains Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Other Income and Gains | 13.1 | 23.5 | -44.0% | - The decrease was primarily due to reduced interest income affected by interest rate cuts in USD and RMB; exchange losses incurred during the period due to exchange rate fluctuations; and decreased government grants influenced by policy factors[40](index=40&type=chunk) [Selling and Distribution Expenses](index=17&type=section&id=銷售及分銷開支) Selling and distribution expenses increased by 2.2% to RMB 17.6 million, mainly due to increased investment in expanding and maintaining chain pharmacies to boost customer loyalty Selling and Distribution Expenses Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 17.6 | 17.2 | +2.2% | - The increase was primarily due to greater investment in the expansion and maintenance of chain pharmacies to enhance their stickiness[41](index=41&type=chunk) [Administrative Expenses](index=17&type=section&id=行政開支) Administrative expenses decreased by 16.0% to RMB 14.2 million, primarily due to cost reduction, improved operational efficiency, and deferred activities Administrative Expenses Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 14.2 | 17.0 | -16.0% | - The decrease was primarily due to the company reasonably cutting redundant expenses, improving operational efficiency, and deferring some activities to the second half of the year[42](index=42&type=chunk) [Research and Development Costs](index=17&type=section&id=研究及開發成本) Research and development costs increased by 14.4% to RMB 33.0 million, mainly driven by increased investment in AI+data, AI+medical, and the integrated intelligent agent creation platform Research and Development Costs Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | R&D Costs | 33.0 | 28.9 | +14.4% | - The increase was primarily due to increased R&D investment in AI+data, AI+medical, and the integrated intelligent agent creation platform during the period[43](index=43&type=chunk) [Profit Before Tax](index=17&type=section&id=除稅前溢利) Profit before tax decreased by 38.5% to RMB 26.2 million, influenced by lower gross profit, increased R&D, reduced government grants, decreased interest and exchange gains, partially offset by lower financial asset impairment losses Profit Before Tax Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit Before Tax | 26.2 | 42.5 | -38.5% | - The decrease was primarily due to a **RMB 6.7 million** decline in gross profit from the company's phased adjustment of operating strategies; a **RMB 4.1 million** increase in research and development costs due to greater investment in R&D talent and infrastructure; a **RMB 6.9 million** reduction in government grants; a combined **RMB 5.6 million** decrease in interest income and exchange gains; partially offset by a **RMB 4.7 million** decrease in impairment losses on financial assets[44](index=44&type=chunk) [Income Tax Expense](index=18&type=section&id=所得稅開支) Income tax expense significantly increased from RMB 0.2 million to RMB 1.6 million, mainly due to a higher effective tax rate resulting from the stable profitability of certain subsidiaries Income Tax Expense Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 1.6 | 0.2 | Significant increase | - The increase was primarily due to some subsidiaries turning profitable in the same period last year, with these lower effective tax rate subsidiaries contributing significantly to profit before tax; as these subsidiaries have achieved stable profitability in the current period, the effective tax rate has increased year-on-year[45](index=45&type=chunk) [Profit for the Period](index=18&type=section&id=期內溢利) The Group's profit for the period decreased by 42.1% to RMB 24.5 million, reflecting the combined impact of various financial factors Profit for the Period Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 24.5 | 42.3 | -42.1% | [Liquidity and Capital Resources](index=18&type=section&id=流動資金及資本資源) As of June 30, 2025, the Group funded operations via cash flow and global offerings, with no bank borrowings, a 21.1% gearing ratio, and over 100% capital expenditure increase for AI computing servers Liquidity and Liabilities | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 51.4 | 63.7 | | Borrowings | Nil | Nil | | Lease Liabilities | 9.4 | - | | Gearing Ratio | 21.1% | 14.4% | - The Group faces foreign exchange risk from fluctuations between RMB and USD, currently without hedging activities, but will actively explore timely use of financial instruments for hedging[51](index=51&type=chunk) - Capital expenditure was approximately **RMB 3.9 million**, an increase of over **100%** compared to the same period in 2024, primarily for acquiring computing servers to support the AI strategic layout[53](index=53&type=chunk) - As of June 30, 2025, the Group had no significant contingent liabilities, guarantees, or material litigation against it, nor any significant acquisitions or disposals, or major future investment plans[54](index=54&type=chunk)[55](index=55&type=chunk) [Employees and Staff Costs](index=19&type=section&id=員工及員工成本) As of June 30, 2025, the Group had 756 full-time employees, with staff costs decreasing by 3.4%, emphasizing talent development, with 39% medical and 18% AI/tech backgrounds, supported by incentive plans Employee Count and Cost Change | Metric | June 30, 2025 | June 30, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Full-time Employees | 756 | 778 | -2.8% | | Staff Costs | RMB 72.8 million | RMB 75.4 million (estimated) | -3.4% | Employee Count by Function (June 30, 2025) | Function | Number of Employees | Percentage of Total | | :--- | :--- | :--- | | Solutions and Products | 341 | 45% | | R&D | 224 | 30% | | Sales and Marketing | 125 | 16% | | General and Administrative | 66 | 9% | | Total | 756 | 100% | - Approximately **39%** of employees have medical backgrounds and experience, and approximately **18%** have AI and technical backgrounds[57](index=57&type=chunk) - The company has adopted share option schemes and share incentive schemes to motivate outstanding employees and attract top talent[57](index=57&type=chunk) [Subsequent Events](index=20&type=section&id=期後事項) No significant events requiring further disclosure or adjustment have occurred since the reporting period ended - No significant events requiring further disclosure or adjustment have occurred for the Group from the end of the reporting period to the date of this announcement[58](index=58&type=chunk) [Unaudited Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=21&type=section&id=未經審核中期簡明綜合損益及其他全面收益表) This section presents the unaudited consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2025, detailing financial performance and earnings per share Unaudited Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 147,925 | 159,531 | | Cost of Sales | (65,823) | (70,743) | | Gross Profit | 82,102 | 88,788 | | Other Income and Gains | 13,145 | 23,454 | | Selling and Distribution Expenses | (17,564) | (17,184) | | Administrative Expenses | (14,243) | (16,963) | | R&D Costs | (33,030) | (28,881) | | Net Impairment Loss on Financial Assets | (1,016) | (5,725) | | Other Expenses | (2,999) | (616) | | Finance Costs | (240) | (329) | | Profit Before Tax | 26,155 | 42,544 | | Income Tax Expense | (1,644) | (196) | | Profit for the Period | 24,511 | 42,348 | | Basic and Diluted Earnings Per Share Attributable to Owners of the Parent (RMB) | 0.06 | 0.10 | [Unaudited Interim Condensed Consolidated Statement of Financial Position](index=22&type=section&id=未經審核中期簡明綜合財務狀況表) This section presents the unaudited consolidated statement of financial position as of June 30, 2025, detailing asset, liability, and equity composition, reflecting structural changes Unaudited Interim Condensed Consolidated Statement of Financial Position (Summary) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 47,409 | 142,797 | | Total Current Assets | 778,292 | 668,099 | | Total Current Liabilities | 135,811 | 92,345 | | Net Current Assets | 642,481 | 575,754 | | Total Assets Less Current Liabilities | 689,890 | 718,551 | | Total Non-current Liabilities | 8,019 | 9,744 | | Net Assets | 681,871 | 708,807 | | Total Equity | 681,871 | 708,807 | [Notes to the Unaudited Interim Condensed Consolidated Financial Information](index=24&type=section&id=未經審核中期簡明綜合財務資料附註) This section provides detailed notes to the interim condensed consolidated financial information, covering company details, accounting policies, segment information, revenue, profit before tax, tax, dividends, EPS, receivables, financial assets, cash, payables, and share capital changes [1. Company Information](index=24&type=section&id=1.%20公司資料) Zhongkang Holdings Limited, an investment holding company incorporated in the Cayman Islands, provides data insight solutions, data-driven publishing, and SaaS products, listed on the HKEX Main Board on July 12, 2022 - The Company is a limited company incorporated in the Cayman Islands on March 4, 2019, primarily engaged in providing data insight solutions, data-driven publishing and events, and SaaS products[62](index=62&type=chunk) - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on July 12, 2022[63](index=63&type=chunk) [2. Basis of Preparation](index=24&type=section&id=2.%20編製基準) The interim condensed consolidated financial information is prepared under HKAS 34 and should be read with the Group's 2024 annual consolidated financial statements - The interim condensed consolidated financial information has been prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting[64](index=64&type=chunk) [3. Changes in Accounting Policies](index=24&type=section&id=3.%20會計政策變動) Accounting policies remain consistent with the prior year, with the new adoption of HKAS 21 "Lack of Exchangeability" having no financial impact due to the Group's exchangeable transaction currencies - The financial information for the current period has been prepared in accordance with the revised Hong Kong Financial Reporting Standards, specifically Hong Kong Accounting Standard 21 (Revised) 'Lack of Exchangeability', adopted for the first time[65](index=65&type=chunk)[66](index=66&type=chunk) - As all the Group's transaction currencies are exchangeable, these revisions had no impact on the interim condensed consolidated financial information[66](index=66&type=chunk) [4. Operating Segment Information](index=24&type=section&id=4.%20經營分部資料) The Group operates as a single reportable segment, with management monitoring its overall performance for decision-making - The Group does not disaggregate its business units by services and has only one reportable operating segment[67](index=67&type=chunk) [5. Revenue, Other Income and Gains](index=25&type=section&id=5.%20收入%2C%20其他收入及收益) This section details revenue from customer contracts by product, scenario, market, and recognition timing, outlines performance obligations for data insight, publishing, and SaaS products, and itemizes other income and gains including interest, grants, and exchange differences Customer Contract Revenue Classification (H1 2025) | Classification | RMB thousand | | :--- | :--- | | **By Product Type:** | | | Data Insight Solutions | 84,743 | | Data-Driven Publishing and Events | 32,730 | | SaaS Products | 30,452 | | **By Application Scenario:** | | | Smart Decision Cloud | 71,708 | | Smart Retail Cloud | 48,456 | | Smart Medical Cloud | 17,207 | | Smart Health Management Cloud | 10,554 | | **By Geographical Market:** | | | Mainland China | 146,892 | | Overseas | 1,033 | | **Timing of Revenue Recognition:** | | | Services transferred at a point in time | 75,949 | | Services transferred over time | 71,976 | Other Income and Gains Analysis (H1 2025) | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank interest income | 11,840 | 13,450 | | Government grants | 680 | 7,578 | | Investment income from financial assets at fair value through profit or loss | 616 | 119 | | Net exchange loss | 1,741 | (2,291) (gain) | | Total other income and gains | 13,145 | 23,454 | [6. Profit Before Tax](index=27&type=section&id=6.%20除稅前溢利) This section details the components of profit before tax, including cost of services, depreciation, R&D, interest income, government grants, financial asset fair value losses, and exchange differences Composition of Profit Before Tax (H1 2025) | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of services provided | 65,823 | 70,743 | | Depreciation of property, plant and equipment | 1,551 | 1,277 | | Depreciation of right-of-use assets | 2,335 | 2,326 | | Amortisation of other intangible assets | 390 | 364 | | R&D costs | 33,030 | 28,881 | | Bank interest income | (11,840) | (13,450) | | Government grants | (680) | (7,578) | | Fair value loss on financial assets at fair value through profit or loss | 1,251 | 575 | | Net exchange loss | 1,741 | (2,291) (gain) | | Net impairment of trade receivables | 1,016 | 5,725 | [7. Income Tax](index=27&type=section&id=7.%20所得稅) The Group's income tax is entity-based, with Hong Kong subsidiaries having no taxable profits, Mainland China subsidiaries subject to 25% statutory rate (15% for high-tech, 5% for small/micro), and current period tax expense mainly comprising Mainland China and deferred tax - Guangzhou Zhongkang Digital Technology Co., Ltd., as a high-tech enterprise, enjoys a preferential Chinese enterprise income tax rate of **15%**[75](index=75&type=chunk) - During the period, certain subsidiaries operating in Mainland China were recognized as small and micro enterprises, enjoying a preferential tax rate of **5%**[76](index=76&type=chunk) Income Tax Expense Composition (H1 2025) | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current - Mainland China tax deducted during the period | 1,933 | 254 | | Deferred tax | (289) | (58) | | Total tax deducted during the period | 1,644 | 196 | [8. Dividends](index=28&type=section&id=8.%20股息) Shareholders approved a final dividend of HKD 7.25 cents per ordinary share for 2024, totaling RMB 50 million, but no interim dividend was declared for the six months ended June 30, 2025 - On March 28, 2025, shareholders approved a final dividend of **HKD 7.25 cents** per ordinary share for the year ended December 31, 2024, totaling approximately **RMB 50,000,000**[78](index=78&type=chunk) - The Board did not declare an interim dividend for the six months ended June 30, 2025[79](index=79&type=chunk) [9. Earnings Per Share Attributable to Owners of the Parent](index=28&type=section&id=9.%20母公司普通股權益持有人應佔每股盈利) This section outlines the profit attributable to ordinary equity holders and the weighted average number of ordinary shares used for basic and diluted EPS calculations, noting no potentially dilutive shares EPS Calculation Data (H1 2025) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent for the purpose of basic and diluted earnings per share (RMB thousand) | 24,744 | 41,675 | | Weighted average number of ordinary shares in issue for the purpose of basic and diluted earnings per share (shares) | 407,727,793 | 417,249,077 | - There were no potentially dilutive ordinary shares outstanding for the Group during the period[81](index=81&type=chunk) [10. Trade and Bills Receivables](index=29&type=section&id=10.%20貿易應收款項及應收票據) As of June 30, 2025, trade and bills receivables totaled RMB 92.98 million, with credit terms of 7-120 days, and this section details their aging analysis and impairment loss provisions Trade and Bills Receivables (June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 122,904 | 123,476 | | Bills receivables | 3,878 | 3,887 | | Impairment | (33,801) | (32,863) | | Total | 92,981 | 94,500 | Aging Analysis of Trade Receivables (June 30, 2025) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 6 months | 65,110 | 71,307 | | 6 to 12 months | 15,331 | 10,026 | | 1 to 2 years | 7,047 | 7,173 | | 2 to 3 years | 1,615 | 2,107 | | Total | 89,103 | 90,613 | Changes in Impairment Loss Provisions for Trade Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | At beginning of period/year | 32,863 | 23,530 | | Net impairment loss | 1,016 | 9,333 | | Amounts written off as uncollectible | (78) | – | | At end of period/year | 33,801 | 32,863 | [11. Financial Assets at Fair Value Through Profit or Loss](index=30&type=section&id=11.%20按公平值計入損益的金融資產) As of June 30, 2025, financial assets at fair value through profit or loss totaled RMB 39.92 million, mainly short-term financial products and private equity funds from Mainland Chinese banks, all redeemable on demand Financial Assets at Fair Value Through Profit or Loss (June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Unlisted investments, at fair value | 39,871 | 47,884 | | Unlisted equity investments, at fair value | 50 | 50 | | Total | 39,921 | 47,934 | - The aforementioned unlisted investments refer to certain financial products issued by Mainland Chinese commercial banks with maturities within one year and private equity funds issued by Mainland Chinese portfolio companies, all of which are redeemable at any time[86](index=86&type=chunk) [12. Cash and Cash Equivalents](index=30&type=section&id=12.%20現金及現金等價物) As of June 30, 2025, cash and cash equivalents totaled RMB 51.42 million, mainly in RMB and USD, with fixed-rate time deposits ranging from one month to three years Cash and Cash Equivalents (June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cash and bank balances | 46,685 | 61,904 | | Time deposits | 593,235 | 555,540 | | Subtotal | 639,920 | 617,444 | | Less: Non-cash equivalent portion | (588,496) | (553,729) | | Cash and cash equivalents | 51,424 | 63,715 | Cash and Cash Equivalents by Currency (June 30, 2025) | Currency | June 30, 2025 (RMB thousand) | | :--- | :--- | | RMB | 45,496 | | USD | 5,780 | | SGD | 87 | | HKD | 61 | | Total | 51,424 | [13. Trade Payables](index=31&type=section&id=13.%20貿易應付款項) As of June 30, 2025, trade payables totaled RMB 15.83 million, mostly due within 3 months, non-interest-bearing, and typically settled within 90 days Aging Analysis of Trade Payables (June 30, 2025) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 13,742 | 13,910 | | 4 to 6 months | 158 | 1,311 | | 7 to 12 months | 1,202 | 219 | | Over 12 months | 725 | 1,178 | | Total | 15,827 | 16,618 | [14. Other Payables and Accrued Expenses](index=31&type=section&id=14.%20其他應付款項及應計費用) As of June 30, 2025, other payables and accrued expenses totaled RMB 111.49 million, mainly comprising payroll, contract liabilities, taxes, and dividends payable Other Payables and Accrued Expenses (June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Payroll payable | 10,289 | 26,249 | | Contract liabilities | 41,442 | 25,766 | | Taxes payable (excluding income tax) | 7,003 | 5,759 | | Dividends payable | 50,000 | – | | Other payables | 2,754 | 5,939 | | Total | 111,488 | 63,713 | [15. Share Capital and Treasury Shares](index=31&type=section&id=15.%20股本及庫存股份) As of June 30, 2025, the company's issued share capital was RMB 30.38 million, treasury shares were RMB 208.98 million, and 407,500 shares were repurchased for a share award scheme Share Capital and Treasury Shares (June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Share capital | 30,384 | 30,384 | | Treasury shares | (208,982) | (207,535) | - In 2025, the Company repurchased **407,500** shares on the Stock Exchange for its share award scheme at a total consideration of approximately **HKD 1,597,000** (equivalent to approximately **RMB 1,447,000**)[91](index=91&type=chunk) [Definitions](index=32&type=section&id=釋義) This section defines key terms and abbreviations used throughout the report, including AI, AI-MDT, conference names, company entities, product names, business models, and financial terminology, for clarity

Group 1 - The board meeting of Zhongkang Holdings (02361.HK) is scheduled for August 29, 2025, to consider and approve the unaudited interim results for the six months ending June 30, 2025 [1] - The meeting will also discuss the potential declaration of an interim dividend, if applicable [1]

（股份代號：2361） 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，並明確表示不會就因本公告全部或任何部分內容而產生 或因依賴該等內容而引致的任何損失承擔任何責任。 Sinohealth Holdings Limited 中康控股有限公司 （於開曼群島註冊成立的有限公司） 於本公告日期，執行董事為吳鬱抒先生及王莉芳女士；非執行董事為付海濤先生；及獨立 非執行董事為王丹舟女士、杜依琳女士及魏斌先生。 董事會會議日期 中康控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈，董事會會議將於2025 年8月29日（星期五）舉行，藉以（其中包括）考慮及批准本公司及其附屬公司截至2025年6 月30日止六個月之未經審核中期業績及其發佈，並考慮派發中期股息（如有）。 承董事會命 中康控股有限公司 主席 吳鬱抒 香港，2025年8月13日 ...

Group 1 - The core point of the article indicates that on August 12, shareholders of Zhongkang Holdings (02361) transferred stocks from Guotai Junan (Hong Kong) to Zhuhai International Securities, with a transfer market value of HKD 233 million, accounting for 15.17% [1] - Zhongkang Holdings announced that its revenue for the first half of 2025 is expected to decrease by approximately 5% to 10% compared to the same period in 2024, which is about RMB 160 million [1] - The net profit attributable to shareholders of the listed company for the first half of 2025 is projected to decline by approximately 36% to 46% compared to the same period in 2024, which is about RMB 41.7 million [1]

Group 1 - The core point of the article indicates that Zhongkang Holdings (02361) has experienced a significant shareholder transfer, with shares worth HKD 233 million being moved from Guotai Junan (Hong Kong) to Zhuhai International Securities, representing 15.17% of the total shares [1] - Zhongkang Holdings announced that its revenue for the first half of 2025 is expected to decrease by approximately 5% to 10% compared to the same period in 2024, which translates to around RMB 160 million [1] - The net profit attributable to shareholders for the first half of 2025 is projected to decline by 36% to 46% compared to approximately RMB 41.7 million in the same period of 2024 [1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | | | | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02361 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,000,000,000 | USD | | 0.01 | USD | | 20,000,000 | | 增加 / 減少 (-) | | | 0 | | | | USD | | 0 | | 本月底結存 | | | 2,000,000,000 | USD | | 0.01 | USD | | 20,000,000 | 致：香港交易及結算所有限公司 公司名稱: 中康控股有限公司 呈交日期: 2025年8月6日 I. 法定/註冊股本變動 本月底法定/註冊股本總額： USD 20,000,00 ...

Financial Performance - Operating revenue for FY2024 is projected to be HK$403.73 million, representing a 1.4% increase from FY2023[13] - Revenue from innovative business is expected to reach HK$111.82 million in FY2024, reflecting a 10.8% growth compared to FY2023[13] - The average dividend per share for 2024 is set at HK$16.83 cents, with a payout ratio of 70%[13] - The company plans to make two dividend payments in 2024, totaling HK$76.03 million[13] - The company's revenue for 2024 reached RMB 403,728,000, a 1.4% increase from RMB 396,194,000 in 2023[20] - Gross profit for 2024 was RMB 233,201,000, reflecting a 4% increase from RMB 223,472,000 in 2023[20] - Net profit attributable to owners of the parent for 2024 was RMB 110,649,000, up 8% from RMB 102,032,000 in 2023[20] - Gross profit margin increased from 56.4% in FY2023 to 57.8% in the current financial year, representing an improvement of 1.4 percentage points[48] - Net profit margin rose from 25.5% in FY2023 to 27.7% in the current financial year, an increase of 2.2 percentage points[48] - The company's net profit reached approximately RMB 111.8 million, reflecting a year-on-year increase of about 10.8%[48] Business Strategy and Development - The digital and intelligent transformation in pharmacies is a key focus area for the company, enhancing operational efficiency[13] - The company is leveraging AI technology for strategic upgrades and to chart a new development blueprint[13] - The company aims to consolidate its leading edge while exploring innovative business opportunities[13] - The company aims to build a digital and intelligent health management system focused on "patient-centrism" across the entire life cycle[23] - The Company expanded its market presence by deepening its foothold in the out-of-hospital market while also growing its in-hospital innovative business[26] - The Company aims to enhance its R&D efforts and upgrade the "Woodpecker Medical Large Model" to meet customer needs with higher efficiency and quality[38] - The Company will continue to leverage AI technology to develop AI+ series products, creating long-term value for customers[125] - The Company aims to expand its strategic layout in the innovative drug and device field through investments, mergers, and acquisitions[71] Research and Development - The big data research institute will support R&D efforts, integrating data and AI technology[13] - The Company significantly increased R&D investment, focusing on AI large model development and applications, which led to substantial commercialization achievements across healthcare, pharmacies, and health management sectors[30] - R&D expenses increased by approximately 6.0% year-on-year, focusing on computing infrastructure and high-level talent recruitment[51] - The Company will continue to enhance its digital intelligence solutions for pharmaceutical and medical device enterprises to improve R&D efficiency[135] Market Presence and Client Engagement - The company has established a corporate customer network of 1,230 companies and serves over 5 million patients[20] - The Company has nearly one million industry professionals connected through its industrial ecological platform[20] - The cumulative number of pharmaceutical retail enterprises served reached 2,853, positioning the company as a market leader with continuous growth[63] - The Company served over 5,073,000 patients in 2024, a year-on-year increase of 106.39%, highlighting significant advancements in product capabilities[117] - The Company established cooperative relations with over 1,230 enterprise customers, enhancing product efficiency and achieving mutual benefits[115] AI and Technology Integration - The AI-driven "Woodpecker Medical Large Model" ranked 5th in the comprehensive list and 3rd in the complex medical reasoning sub-category on the Medbench ranking[20] - The Woodpecker AI-MDT health management solutions reached over 5.073 million people, representing a year-on-year increase of 106.39% compared to 2023[68] - The Woodpecker Medical Large Model has a total scale of weighting parameters reaching 70 billion, supported by millions of public data, tens of millions of desensitized data, and millions of labeled data[99][100] - The model has served a total of 20 million people in personalized health management through in-depth analysis of multi-source data[103] Operational Efficiency and Cost Management - The cost of sales decreased by approximately 1.3%, from approximately RMB172.7 million in FY2023 to approximately RMB170.5 million in FY2024, due to improved operational efficiency and cost control[139] - Selling and distribution expenses increased by approximately 23.7% to approximately RMB 40.1 million for the year ended 31 December 2024, attributed to business structure optimization and increased investment in talent[145] - Administrative expenses rose by approximately 11.1% to approximately RMB 38.5 million for the year ended 31 December 2024, primarily due to personnel structure optimization and increased incentives for key talents[146] Leadership and Management - Ms. Wang Lifang has over 20 years of experience in the healthcare information and data analysis industry[198] - Ms. Wang has been serving as the Executive Director and COO since June 3, 2021, overseeing daily operations and management[198] - Mr. Fu Haitao was appointed as a Non-Executive Director on June 3, 2021, with prior experience in government affairs and venture capital[197] - Ms. Wang holds a Bachelor's degree in International Economics from Harbin Institute of Technology, obtained in July 1997[199] Industry Trends and Insights - The total health expenditure in China for 2023 was only 7.2% of the total GDP, indicating significant growth potential compared to developed countries[22] - The healthcare industry is undergoing restructuring and upgrading at an accelerated pace due to AI democratization and national policies[44] - The Company was recognized as a member of the Guangdong Data Element Industry Association in February 2024, highlighting its data governance capabilities[101][102]

Core Viewpoint - Zhongkang Holdings (2361.HK) has demonstrated steady progress with a revenue of 404 million RMB, a year-on-year increase of 1.9%, and a net profit of 112 million RMB, reflecting a 10.8% growth, amidst the backdrop of AI reshaping productivity in the healthcare industry [1][2] Group 1: Market Context and Opportunities - The global capital market is experiencing a "rise of the East and fall of the West" trend, with a wave of asset revaluation centered around China, supported by domestic consumption boosts and policies favoring the healthcare industry [3][4] - Zhongkang Holdings is well-positioned to capitalize on these dual opportunities, potentially unlocking new value growth points [4][6] Group 2: Business Structure and Growth Engines - Zhongkang Holdings operates on a "three-pronged" business model, focusing on To B (business), To C (consumer), and To R (research) segments, forming a robust "iron triangle" structure [8] - The To B segment, which is the core revenue source, has seen significant growth, with innovative hospital-based business revenue reaching 48.4 million RMB, a year-on-year increase of 86.5% [10][12] - The To C segment is rapidly emerging as a new growth engine, with AI-MDT health management services reaching over 5.07 million patients, reflecting a 106% year-on-year growth [13] Group 3: Value Growth Logic - Zhongkang Holdings' core value growth logic is anchored in three key areas: scarcity, flywheel effect, and application scenarios [15] - The company holds a unique position in the healthcare data technology sector, benefiting from a near-monopoly in data infrastructure and a strong ecosystem of partnerships [16] - The flywheel effect is evident as data accumulation and model optimization enhance customer stickiness, driving long-term growth [18][19] - The company is well-positioned to benefit from the accelerated commercialization of AI in healthcare, with a focus on deep penetration into medical scenarios [20][21] Group 4: Financial Performance and Shareholder Returns - Zhongkang Holdings has a gross margin of 57.8%, up 1.4 percentage points from the previous year, indicating strong scale effects and cost efficiency driven by AI [21] - The company maintains a robust cash flow and a high dividend payout ratio of 70%, significantly above the median of the Hang Seng Technology Index, reflecting a commitment to shareholder returns [21][22]

Financial Performance - The company's total revenue for the year ended December 31, 2024, was RMB 403.7 million, representing a year-on-year increase of 1.9% compared to RMB 396.2 million in 2023[3]. - Gross profit increased to RMB 233.2 million, up 4.4% from RMB 223.5 million in the previous year, with a gross margin improvement from 56.4% to 57.8%[5]. - Net profit for the year reached RMB 111.8 million, reflecting a 10.8% increase from RMB 100.9 million in 2023[3]. - The company's revenue for the fiscal year 2024 is projected to increase by approximately 1.9% to around RMB 403.7 million, up from RMB 396.2 million in the previous year, driven mainly by growth in smart retail and health management cloud services[29]. - The group's annual profit increased by approximately 10.8% from RMB 100.9 million for the year ended December 31, 2023, to about RMB 111.8 million for the year ending December 31, 2024, primarily due to an increase in pre-tax profit and a decrease in income tax expenses[38]. Revenue Growth - The company's innovative B2B hospital business generated revenue of RMB 48.4 million, marking an impressive year-on-year growth of 86.5%[6]. - Revenue from Smart Retail Cloud reached RMB 88.9 million, a year-on-year increase of 24.2%, with 694 enterprise-level customers, up approximately 11.6%[13]. - Revenue from Smart Health Management Cloud was approximately RMB 22.1 million, reflecting a year-on-year growth of about 57.1%, serving over 5.073 million patients, a 106.39% increase compared to the previous year[16]. - Revenue from data insight solutions was RMB 199,078,000, up from RMB 195,741,000, reflecting a growth of 1.7%[67]. - SaaS product revenue increased to RMB 60,478,000, a rise of 6.0% compared to RMB 56,837,000 in 2023[67]. Client and Market Expansion - The company signed over 600 contracts with a total contract value of approximately RMB 101.5 million, representing a 44.2% increase compared to the previous year[6]. - The company has established a comprehensive ecosystem covering 1,230 enterprise clients, over 17,000 pharmacies, and more than 460 hospitals, managing over 245,000 pharmacy staff and 282 million pharmacy members[6]. - As of December 31, 2024, the company has served 661 enterprise-level clients with its intelligent decision-making solutions, leading the market with a client concentration of 96.67% among the top 30 medical product suppliers[9]. - The company has provided intelligent retail solutions to 2,853 pharmaceutical retail enterprises, maintaining a leading market position and continuous growth as of December 31, 2024[9]. - The company has established partnerships with over 1,230 enterprise clients, enhancing product offerings and achieving mutual benefits through continuous feedback and optimization[21]. Research and Development - Research and development expenses rose by approximately 6.0%, focusing on computational infrastructure and high-level talent acquisition to enhance AI core technology breakthroughs[6]. - The company aims to enhance operational efficiency and management quality through organizational restructuring and increased R&D investment, focusing on AI tools[7]. - The company plans to enhance its AI capabilities by optimizing its medical model, improving efficiency and quality, and developing more AI+ products[24]. - Research and development costs are expected to grow by approximately 6.0% to around RMB 64.8 million, due to the recruitment of high-end R&D talent and increased investment in AI technology[35]. - The company has developed the "Zhuomuniao Medical Large Model," which integrates over 700 billion weight parameters from millions of public data sources, enhancing its competitive edge in the healthcare industry[18]. Operational Efficiency - Sales costs are expected to decrease by about 1.3% to approximately RMB 170.5 million for the fiscal year 2024, down from RMB 172.7 million, due to improved operational efficiency[30]. - The company's marketing efficiency improved through various industry events, enhancing resource optimization and reducing marketing costs[13]. - The company aims to improve healthcare efficiency and service quality through its "Medical Health Full-Scenario Intelligent Body" solution, which focuses on intelligent decision-making and agile actions[18]. - The effective tax rate for 2024 was 6.9%, down from 8.9% in 2023, indicating a reduction in the tax burden[79]. - The company has implemented a strict control over overdue receivables, with senior management regularly reviewing overdue balances[84]. Strategic Initiatives - The strategic upgrade includes expanding both B2B and B2C markets while fostering innovation in the healthcare sector[8]. - The company is committed to leveraging AI technology and industry insights to drive high-quality development in the health sector[8]. - The company is actively exploring business models for personal traffic monetization in conjunction with existing application scenarios[13]. - The company is expanding its strategic layout in the innovative medical device sector through investments and acquisitions, aiming to integrate resources and foster new growth curves[11]. - The company has established a multi-disciplinary tumor diagnosis and treatment platform, connecting over 17,000 registered tumor doctors and conducting more than 800 MDT meetings by December 31, 2024[10]. Financial Position - As of December 31, 2024, the total cash and cash equivalents amounted to approximately RMB 63.7 million, a decrease of about 48.6% compared to December 31, 2023, mainly due to the placement of idle funds in time deposits with licensed financial institutions[40]. - The group had no short-term or long-term bank borrowings as of December 31, 2024, except for lease liabilities totaling approximately RMB 11.8 million[41]. - The debt-to-equity ratio as of December 31, 2024, was approximately 14.4%, compared to 13.9% as of December 31, 2023[42]. - The company reported no single customer accounting for 10% or more of total revenue in both 2024 and 2023, indicating a diversified customer base[65]. - The total financial costs for 2024 were RMB 621,000, slightly down from RMB 640,000 in 2023, showing a decrease of about 3%[76]. Shareholder Returns - The proposed final dividend for 2024 is RMB 50,000,000, an increase from RMB 30,000,000 in 2023, representing a growth of approximately 66.7%[80]. - The company plans to propose a final dividend of HKD 0.12 per share for the year ending December 31, 2024, subject to shareholder approval[90]. - The company repurchased shares amounting to approximately RMB 106,414,000 in total during 2023 and 2024[89]. - The company has implemented a stock option plan and a share incentive plan to align the interests of employees and shareholders[100]. - The audit committee, consisting of three independent non-executive directors, has communicated with management and external auditors regarding the audited consolidated financial statements for the fiscal year ending December 31, 2024[96].

Financial Performance - Revenue for the first half of 2024 reached RMB 72,073 thousand, representing a 5.4% increase compared to RMB 68,233 thousand in the first half of 2023[7] - The Group's revenue for the six months ended June 30, 2024, was approximately RMB 159.5 million, representing a year-on-year increase of 10.1%[14] - Revenue for the first half of 2024 reached RMB 159,531, an increase from RMB 144,950 in the same period of 2023, representing a growth of 9.5%[146] - Gross profit for the period was RMB 88,788, compared to RMB 75,182 in 2023, indicating a year-over-year increase of 18.2%[146] - The company reported a total comprehensive income for the period of RMB 42,348, compared to RMB 46,970 in 2023, a decline of 9.0%[146] - Profit for the period attributable to owners of the parent was RMB 41,675, down from RMB 47,833 in 2023, reflecting a decrease of 12.5%[146] - Profit before tax decreased by approximately 11.2% from approximately RMB 47.9 million as of 30 June 2023 to approximately RMB 42.5 million as of 30 June 2024, mainly due to a decrease in foreign exchange gains[76] - Net profit (excluding foreign exchange gain or loss) increased by approximately 23.2% from approximately RMB 32.5 million as of 30 June 2023 to approximately RMB 40.1 million as of 30 June 2024, with a net profit margin increase of 2.7 percentage points to 25.1%[79] Customer and Market Growth - The number of corporate customers increased to 842 in the first half of 2024, compared to 869 in the first half of 2023[7] - The number of corporate customers increased by 3.2% to 869, with a repurchase sales rate of leading pharmaceutical and medical device customers at 99.7%[18] - The iMDT platform registered over 13,000 oncologists and organized more than 500 MDT conferences, connecting over 120,000 doctors[9] - The number of partnering pharmacy stores exceeded 160,000, with over 110,000 stores using the SIC system[8] - The Group established cooperation with over 2,900 pharmaceutical retail enterprises and more than 160,000 pharmacy stores, maintaining a leading market position[26] Product and Service Development - The company aims to expand its market presence and enhance its product offerings through strategic partnerships and technological advancements[8] - The Smart Retail Cloud revenue increased by 28.8% year-on-year, reaching RMB 56.4 million[14] - The Smart Health Management Cloud revenue surged by 194.9% year-on-year, amounting to RMB 16.9 million[14] - The Smart Medical Cloud achieved an operating revenue of approximately RMB 18.0 million during the reporting period, with a corporate customer repurchase sales rate of 100.0%, up approximately 13.5 percentage points year-on-year[37] - The Group's digital cooperation with pharmacies facilitated instant communication and feedback processes for drug retail data, enhancing overall business capabilities[26] Operational Efficiency - Gross profit margin improved to 51.9% in the first half of 2024, up from 55.7% in the same period last year[7] - The maximum daily processing volume of physical medical report interpretation through the AI-MDT system exceeded 40,000 cases, marking an increase of approximately 448% compared to the same period in 2023[8] - The Group established a standardized master data base covering 38 health industry categories, significantly improving data processing capacity with a machine automatic cleaning rate exceeding 97%[10] - The company's data processing capabilities have improved significantly, with a machine automatic cleaning rate exceeding 97% and an accuracy rate exceeding 99%[43][44] Research and Development - Research and development costs rose by approximately 6.1% from approximately RMB 27.2 million as of 30 June 2023 to approximately RMB 28.9 million as of 30 June 2024, primarily driven by increased employee benefits expenses[75] - The "Woodpecker" smart health management system includes a medical knowledge graph developed by over 300 experts, covering 31 disease types and 1,770 diseases[11] - The AI-MDT system utilizes 10 major disease risk assessment models for comprehensive analysis of physical examination data[31] Corporate Governance and Compliance - The Company has complied with all applicable code provisions of the Corporate Governance Code during the Reporting Period, except for the separation of the roles of Chairman and CEO[103] - The Company is committed to maintaining good corporate governance standards to safeguard shareholders' interests and enhance corporate value[103] - The Company will review its corporate governance practices periodically to ensure compliance with statutory and business developments[106] Shareholder Information - As of June 30, 2024, the total number of shares issued by Sinohealth Holdings Limited is 451,770,000[116] - The Share Option Scheme allows for a maximum of 45,000,000 shares to be issued, accounting for 9.96% of the total shares in issue[128] - The Share Award Scheme was adopted on December 5, 2022, with a limit of 45,177,000 shares, representing 10% of the total issued shares at the adoption date[134] - The Company did not declare any interim dividend for the six months ended June 30, 2024, consistent with the previous year[138] Cash Flow and Financial Position - The company’s cash and cash equivalents decreased to RMB 23,764 from RMB 123,931, a decline of 80.8%[148] - Net cash flows from operating activities for the first half of 2024 were RMB 19,561,000, a significant decrease of 58.8% compared to RMB 47,458,000 in 2023[157] - Cash flows used in investing activities totaled RMB 121,663,000 for the first half of 2024, a decrease from RMB 256,177,000 in 2023[159] - The net decrease in cash and cash equivalents was RMB 100,578,000, an improvement from a decrease of RMB 216,833,000 in the prior year[161]