Core Viewpoint - Meizhong Jiahhe is facing significant financial pressure in the short term, with a 27.9% year-on-year revenue decline and an increase in net losses, raising concerns about its ability to turn a profit despite the launch of proton therapy services [1][2][3]. Financial Performance - For the fiscal year 2024, Meizhong Jiahhe reported total revenue of 3.88 billion yuan, a decrease from previous years [6]. - The company's hospital business generated 2.716 billion yuan, accounting for 69.9% of total revenue, down 15.1% year-on-year [3]. - Revenue from medical equipment, software, and related services was 1.167 billion yuan, making up 30.1% of total revenue, with a significant decline of 46.6% [3]. - The net loss expanded from 4.26 billion yuan in 2023 to 4.85 billion yuan in 2024, marking a 13.7% increase [3]. Business Operations - Meizhong Jiahhe operates four self-owned medical institutions primarily located in Guangzhou and Shanghai, covering the Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Delta [3]. - The company has been adjusting its internal business structure, focusing on high-margin departments while reducing low-margin ones, which has impacted revenue [4]. Proton Therapy Development - The Guangzhou Taihe Cancer Hospital's proton center is set to officially open in December 2024, with expectations to treat over 2,000 patients annually and generate more than 600 million yuan in revenue [5]. - Proton therapy has been operational since its launch, treating nearly 100 patients, with a treatment fee of approximately 295,000 yuan, primarily funded through self-pay and commercial insurance [7]. Market Position and Future Outlook - The management believes that the demand for high-end cancer treatment will exceed supply, especially given the company's strategic positioning in key regions [8]. - Plans are underway to establish specialized hospitals in Shanghai and Shijiazhuang, with the latter expected to open in the second half of 2026 [7].

Summary of the Conference Call for Meizhong Jiahe Company Overview - Meizhong Jiahe focuses on the oncology specialty field, providing high-end cancer medical services as a beneficial supplement to the public healthcare system. The company was established in 2008 and aims to build high-end oncology hospitals in first-tier cities to serve patients nationwide [3][4]. Core Business and Collaborations - The company collaborates with top U.S. cancer hospitals, including MD Anderson Cancer Center and Mayo Clinic, to introduce advanced treatment technologies in China [3]. - The business is divided into hospital services targeting C-end patients and a light-asset model empowering medical institutions in lower-tier cities [3]. Financial Performance and Projections - In 2024, Guangzhou Taihe Cancer Hospital is expected to generate approximately 120 million yuan in revenue, with a gross margin adjusted to -44% [3][9]. - The Shanghai outpatient department is projected to achieve medical revenue of around 82 million yuan in 2024, while the imaging center's revenue is expected to remain stable between 63 million and 64 million yuan [3][10]. - The company anticipates that by 2025, revenue from the Guangzhou hospital will exceed 300 million yuan, with total revenue not less than 500 million yuan, and positive cash flow [3][15]. Treatment Innovations - The Guangzhou Taihe Cancer Hospital's self-treatment center, which opened in December 2024, offers proton therapy, a cutting-edge radiation treatment that has already served dozens of patients by February 2025 [5][13]. - Proton therapy is highlighted for its advantages in improving cure rates and quality of life for patients with various types of tumors [5]. International Cooperation and Research - Meizhong Jiahe actively engages in international collaborations, including academic conferences and research projects, and has been selected for national high-end medical equipment promotion projects [6][8]. - The company has established partnerships with over 20 major domestic insurance companies to enhance patient access to high-end medical services [19][20]. Market Demand and Competitive Landscape - The domestic proton therapy market is characterized by high demand that exceeds supply, with an estimated 450,000 new cancer patients annually, of which 2% belong to the mid-to-high-end demographic willing to pay for advanced treatments [18]. - Currently, there are only 10 operational proton centers in China, with expectations to reach 20 within five years and 30 within ten years, indicating a significant growth opportunity for Meizhong Jiahe [18]. Challenges and Strategic Adjustments - The company has faced challenges due to tightened medical insurance policies, leading to adjustments in its business structure and a focus on high-margin departments [11][21]. - Management expenses are projected to be controlled at around 20%, with sales expenses also kept within 20% for new hospital operations [12]. Future Outlook - The company aims to leverage its unique position in the high-end oncology market to attract more patients and improve financial performance in 2025, which is seen as a pivotal year for growth [22][23]. - Efforts will be made to enhance brand recognition for high-end cancer treatment services, particularly through the use of proton therapy equipment [23].

Core Viewpoint - Meizhong Jiahe (02453.HK), the first high-end oncology medical service listed company in China, reported a total revenue of 388 million yuan for the fiscal year 2024, a decrease of 27.9% year-on-year, while gross profit increased by 3.3% to 67 million yuan. The adjusted net loss was 444 million yuan, an increase of 5.5% year-on-year. The company is expected to see a turnaround in performance in 2025, driven by the launch of proton therapy, an advanced chemotherapy technology [1][2][3]. Group 1: Financial Performance - In 2024, Meizhong Jiahe achieved total revenue of 388 million yuan, down 27.9% year-on-year [1] - Gross profit for the year was 67 million yuan, reflecting a 3.3% increase [1] - The adjusted net loss was 444 million yuan, which is a 5.5% increase compared to the previous year [1] Group 2: Proton Therapy Development - Meizhong Jiahe has launched the first proton therapy center in South China, with clinical operations starting on December 16, 2024, and has seen a growing number of patients [2] - The proton therapy center is expected to have an annual patient capacity of 2,000, with projected annual revenue exceeding 600 million yuan based on treatment costs of approximately 300,000 yuan per course [3] - The high initial costs and long construction periods for proton therapy centers create a significant barrier to entry, limiting competition and enhancing patient attraction for Meizhong Jiahe [3] Group 3: AI and Technology Integration - The company has developed a light asset business model utilizing cloud computing and has seen success with its AI and imaging business, particularly in the context of the recent boom in AI technology [4][5] - Meizhong Jiahe has established a core product matrix in AI diagnostics, aiming to empower grassroots medical institutions and enhance the distribution of quality medical resources [5] - The company is constructing China's first tumor treatment vertical model based on proton therapy, which is expected to increase the value of its AI diagnostic business [5] Group 4: Strategic Positioning - Meizhong Jiahe is the only non-public institution involved in setting multiple radiation therapy industry standards in China and has established strategic partnerships with MD Anderson and Mayo Clinic [6] - The unmet clinical demand in China's high-end medical service market, combined with the patient influx expected from the proton therapy center, positions Meizhong Jiahe as a potential standout in the medical services sector [6]

Financial Performance - The company's revenue decreased by 27.9% from RMB 538.7 million for the year ended December 31, 2023, to RMB 388.3 million for the year ended December 31, 2024[6]. - The gross loss increased by 3.3% from RMB 65.1 million for the year ended December 31, 2023, to RMB 67.2 million for the year ended December 31, 2024[6]. - The net loss increased by 13.7% from RMB 426.4 million for the year ended December 31, 2023, to RMB 484.8 million for the year ended December 31, 2024[6]. - The adjusted net loss (non-HKFRS measure) increased by 5.5% from RMB 420.6 million for the year ended December 31, 2023, to RMB 443.9 million for the year ended December 31, 2024[6]. - The total revenue for 2024 is RMB 388.3 million, a decrease of 28% from RMB 538.7 million in 2023[25]. - Revenue from hospital business decreased to RMB 271.6 million in 2024 from RMB 320.0 million in 2023, representing a decline of 15%[25]. - The company reported a loss attributable to owners of the company of RMB 443.2 million in 2024, compared to a loss of RMB 373.1 million in 2023[29]. - The gross profit margin for the year ended December 31, 2024, was (17.3)%, compared to (12.1)% for the year ended December 31, 2023[106]. - The net profit margin for the year ended December 31, 2024, was (124.9)%, compared to (79.2)% for the year ended December 31, 2023[106]. Assets and Liabilities - The total assets less current liabilities increased from RMB 4,031.9 million in 2023 to RMB 4,770.7 million in 2024[8]. - The company's cash and cash equivalents increased from RMB 40.6 million in 2023 to RMB 204.5 million in 2024[8]. - The total equity increased from RMB 1,869.2 million in 2023 to RMB 1,900.8 million in 2024[9]. - The group recorded a loss of RMB 484.8 million for the year ending December 31, 2024, with a net current liability of RMB 422.2 million[22]. - As of December 31, 2024, the financial assets measured at fair value through profit or loss amount to RMB 132.6 million, which can be converted to cash at any time when needed[24]. - As of December 31, 2024, total bank borrowings amounted to RMB 1,479.9 million, an increase from RMB 1,051.9 million in 2023, with most secured by the issued share capital of subsidiaries and certain medical imaging equipment[96]. - As of December 31, 2024, the company's current liabilities net worth was RMB 422.2 million, a decrease from RMB 844.7 million as of December 31, 2023, mainly due to increases in receivables from related parties and cash and cash equivalents[98]. - The asset-liability ratio was 67.8%, an increase from 64.3% as of December 31, 2023[106]. Cash Flow - Operating cash flow used was RMB 186.0 million for the year ended December 31, 2024, compared to cash flow generated of RMB 201.9 million for the year ended December 31, 2023, mainly due to a decrease in overall revenue[86]. - For the year ended December 31, 2024, the net cash used in investing activities was RMB 668.0 million, an increase of RMB 409.4 million compared to RMB 182.3 million for the year ended December 31, 2023, primarily due to purchases of properties, plants, and equipment, investments in joint ventures, and acquisitions of financial assets at fair value through profit or loss[88]. - The net cash generated from financing activities for the year ended December 31, 2024, was RMB 1,018.0 million, compared to a net cash used of RMB 105.4 million for the year ended December 31, 2023, mainly due to proceeds from bank and other borrowings and issuance of new shares[89]. Operational Developments - The proton therapy center at Guangzhou Taihe Tumor Hospital commenced full clinical operations on December 16, 2024, expected to enhance sales performance[24]. - The group has established a proton therapy center at Guangzhou Taihe Tumor Hospital, which is the first of its kind in South China, aiming to enhance revenue and profit in the high-end medical service market[33]. - The Shanghai Taihe Cheng Tumor Hospital is under construction with a total building area of nearly 160,000 square meters, designed to provide advanced precision radiotherapy services[33]. - The group is expanding its services to Southeast Asia, targeting high-incidence tumors like nasopharyngeal cancer, and is developing customized treatment packages in collaboration with regional insurance institutions[37]. - The group has launched a "Proton Therapy Special Insurance" in partnership with well-known insurance companies, increasing accessibility for middle-class patients to advanced international treatment technologies[38]. - The group has implemented a light asset business model to provide medical equipment, software, and related services, particularly targeting healthcare institutions in second and third-tier cities[34]. - The group has established a comprehensive network involving medical institutions, research organizations, and equipment manufacturers to support continuous business growth[34]. Cost Management - The company has strengthened cost control measures to reduce administrative costs and deferred capital expenditures[24]. - Sales cost decreased by 24.5% from RMB 603.7 million for the year ended December 31, 2023, to RMB 455.6 million for the year ended December 31, 2024[60]. - Employee benefits expenses decreased by 31.6% from RMB 164.9 million to RMB 112.8 million, attributed to improved human resource efficiency[64]. - Administrative expenses increased by 9.0% from RMB 191.2 million to RMB 210.5 million, mainly due to increased consulting fees recognized in 2024[69]. - R&D expenses decreased by 14.4% from RMB 36.4 million to RMB 31.2 million, primarily due to reduced costs related to software system development[70]. Future Outlook - The group anticipates adopting all newly issued accounting standards in the first period following their effective dates[16]. - The group is currently evaluating the impact of new accounting standards and amendments on its financial reporting[18]. - The group aims to optimize regional layout by focusing on economically developed urban clusters and enhancing market penetration in second and third-tier cities[51]. - The introduction of advanced technologies such as proton therapy and immunotherapy is expected to upgrade service capabilities and provide one-stop treatment services[52]. - The group plans to enhance patient experience through the development of follow-up systems and integrated service resources[53]. Corporate Governance - The company has complied with the corporate governance code throughout the reporting period[116]. - The audit committee, composed of three independent non-executive directors, reviewed the annual performance and recommended approval to the board[118]. - The company will not declare any final dividend for the year ending December 31, 2024[124]. - An extraordinary general meeting is proposed to be held on April 11, 2025, for shareholders to consider and approve the provision of guarantees[122]. - The annual general meeting is scheduled for May 27, 2025, with a record date for voting eligibility set for May 27, 2025[123][125].

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通告之內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示，概不就因本通告全部或任何部分內容而產生或因倚賴該等內容而引致之任 何損失承擔任何責任。 CONCORD HEALTHCARE GROUP CO., LTD. 美中嘉和醫學技術發展集團股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2453） 臨時股東大會通告 茲通告美中嘉和醫學技術發展集團股份有限公司（「本公司」）謹訂於2025年4月11 日（星期五）上午9時30分假座中國北京市朝陽區光華路7號漢威大廈東區26樓A1室舉 行臨時股東大會（「臨時股東大會」），以考慮及酌情通過以下決議案： 除另有指明外，本通告所用詞彙與日期為2025年3月20日的通函所界定者具有相 同涵義。 特別決議案 1. 審議及批准關於2025年度向金融機構申請綜合授信額度暨提供擔保的議案。 承董事會命 美中嘉和醫學技術發展集團股份有限公司 董事長兼執行董事 楊建宇 香港，2025年3月20日 附註： – 1 – 1. 有關於臨時股東大會上批准之決議案的詳情，請參閱日期為2025年3月20日的通函（ ...

此乃要件 請即處理 閣下如對本通函任何方面或應採取的行動有任何疑問，應諮詢 閣下的持牌股票經紀或其他註冊證券交易 商、銀行經理、律師、專業會計師或其他專業顧問。 倘 閣下已出售或轉讓名下所有美中嘉和醫學技術發展集團股份有限公司的股份，應立即將本通函連同隨 附之代表委任表格送交買方或承讓人，或經手買賣或轉讓之銀行、股票經紀或其他代理人，以便轉交買方 或承讓人。 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通函的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示概不就因本通函全部或任何部分內容而產生或因倚賴該等內容而引致的任何 損失承擔任何責任。 CONCORD HEALTHCARE GROUP CO., LTD. 美中嘉和醫學技術發展集團股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2453） 為本公司附屬公司的融資提供擔保及向董事會授權 及 召開臨時股東大會的通告 董事會函件載於本通函第3至6頁。 美中嘉和醫學技術發展集團股份有限公司將於2025年4月11日（星期五）上午9時30分假座中國北京市 朝陽區光華路7號漢威大廈東區26樓A1室召開臨時股東大會（「臨時股東大 ...

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之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致之任何損失承擔任何責任。 及 本公司召開臨時股東大會而暫停辦理股份過戶登記手續 為本公司附屬公司的融資提供擔保 CONCORD HEALTHCARE GROUP CO., LTD. 美中嘉和醫學技術發展集團股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2453） 為本公司附屬公司的融資提供擔保 為確定出席臨時股東大會並於會上投票的股東權利，本公司將於2025年4月8日 （星期二）至2025年4月11日（星期五）（包括首尾兩日）暫停辦理過戶登記手續， 於此期間將不會進行股份過戶登記。為符合出席臨時股東大會並於會上投票的資 格，所有填妥的股份過戶轉讓表格連同有關股票證書必須於2025年4月7日（星期 一）下午四時三十分前送達本公司的香港股份登記及過戶分處香港中央證券登記 有限公司，地址為香港灣仔皇后大道東183號合和中心17樓1712-1716號舖，以辦 理登記手續。 承董事會命 美中嘉和醫學技術發展集團股份 ...

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之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致之任何損失承擔任何責任。 CONCORD HEALTHCARE GROUP CO., LTD. 美中嘉和醫學技術發展集團股份有限公司 （股份代號：2453） 董事會會議日期 美中嘉和醫學技術發展集團股份有限公司（「本公司」，連同其附屬公司，統稱「本 集團」）董事（「董事」）會（「董事會」）謹此宣佈，董事會會議將於2025年3月27日 （星期四）舉行，藉以（其中包括）考慮及批准本集團截至2024年12月31日止年度 業績及其發佈，並考慮建議派發未期股息（如有）。 於本公告日期，董事會包括(i)執行董事楊建宇博士、付驍女士及常亮先生；(ii)非 執行董事王雷先生、陳宏章先生及施波濤先生；及(iii)獨立非執行董事李雪梅女 士、孫延生先生及吳國賢先生。 承董事會命 美中嘉和醫學技術發展集團股份有限公司 董事長 楊建宇 中華人民共和國北京，2025年3月17日 （於中華人民共和國註冊成立的股份有限公司） ...

Investment Rating - The report assigns a "Buy" rating to the company, indicating a positive outlook for investment opportunities [2]. Core Insights - The company aims to become "China's MD Anderson," focusing on high-end oncology medical services and addressing the significant demand-supply gap in cancer treatment in China [1][2]. - The company has established exclusive strategic partnerships with renowned institutions like MD Anderson Cancer Center and Mayo Clinic, enhancing its service offerings and market positioning [2][8]. - The company is expected to achieve a significant turnaround in profitability with the upcoming launch of its proton therapy center in Guangzhou, projected to drive explosive revenue growth [2][20]. Summary by Sections Section 1: Building an International Top-tier Oncology Medical Service Platform - The company has been a key player in formulating national radiation therapy standards and is the only non-public institution with a proton therapy system in China [1][8]. - It operates five medical institutions, including three cancer hospitals and one imaging diagnostic center, and has a strong focus on integrating international standards into its services [1][8]. - The management team is experienced, with strategic partnerships that enhance operational capabilities and market reach [14][16]. Section 2: Strong Demand for Oncology Treatment - China sees approximately 5 million new cancer patients annually, with a total patient population exceeding 30.8 million, highlighting a critical demand for advanced oncology services [1][30]. - The five-year survival rate for cancer patients in China is 28 percentage points lower than in the U.S., leading to over 600,000 patients seeking treatment abroad each year [1][40]. - The oncology medical service market in China is projected to grow significantly, with private institutions expected to capture a larger market share due to their faster growth rates compared to public institutions [33][34]. Section 3: Differentiated Market Positioning and Growth Potential - The company’s hospitals are built to international standards, and it is positioned to fill the gap in high-end oncology services in China [2][8]. - The integration of AI technology into its operations is expected to enhance service delivery and operational efficiency [2][20]. - The company anticipates substantial revenue growth, with projections indicating over 10 billion in revenue and 2 billion in net profit from its core hospitals in the long term [2][20]. Section 4: Profitability Forecast and Valuation Analysis - The company has shown a narrowing of losses, with expectations of profitability turning positive as new facilities come online [20][21]. - Revenue is projected to increase significantly, with estimates of 914.35 million in 2024 and 1.38 billion in 2025, reflecting a robust growth trajectory [3][20]. - The valuation of the company is expected to rise as performance improves, indicating potential for a "Davis Double" effect as earnings are released [2][20].

Investment Rating - The report assigns a "Buy" rating to the company, indicating a positive outlook for investment [2]. Core Insights - The company aims to become "China's MD Anderson," focusing on high-end oncology medical services and addressing the significant demand-supply imbalance in cancer treatment in China [1][2]. - The company has established exclusive strategic partnerships with renowned institutions like MD Anderson Cancer Center and Mayo Clinic, enhancing its service offerings and market positioning [2][8]. - The company is expected to achieve a significant turnaround in profitability with the upcoming launch of its proton therapy center in Guangzhou, projected to drive explosive revenue growth [2][20]. Summary by Sections Section 1: Building an International Top-tier Oncology Medical Service Platform - The company has been a key player in formulating national radiation therapy standards and is the only non-public institution with a proton therapy system in China [1][7]. - It operates five medical institutions, including three cancer hospitals and one imaging diagnostic center, and has a strong focus on integrating international standards into its services [1][8]. - The company has a well-structured equity framework and a highly experienced management team, which is crucial for its growth [13][15]. Section 2: Strong Demand for Oncology Treatment - China sees approximately 5 million new cancer patients annually, with a total patient population exceeding 30.8 million, highlighting a vast market opportunity [1][30]. - The report notes a significant gap in high-end oncology services, with many patients seeking treatment abroad due to the lower five-year survival rates in China compared to the U.S. [1][40]. - The oncology medical service market in China is projected to grow rapidly, with private institutions expected to capture a larger market share [33][34]. Section 3: Differentiated Market Positioning and Growth Potential - The company’s hospitals are built to international standards, and it has established itself as a model for international cooperation in the medical field [2][8]. - The integration of AI technology into its operations is expected to enhance service delivery and operational efficiency [2][20]. - The company anticipates significant revenue growth, with projections indicating over 10 billion in revenue and 2 billion in net profit from its core hospitals in the long term [2][20]. Section 4: Profit Forecast and Valuation Analysis - The company has shown a consistent reduction in losses, with expectations of profitability as new facilities come online [20][21]. - Revenue is projected to increase significantly, with estimates of 914.35 million in 2024 and 1.38 billion in 2025, reflecting a strong recovery trajectory [3][20]. - The valuation of the company is expected to rise as it approaches profitability, indicating a favorable investment opportunity [2][20].