Jiangxi Rimag Group Co., Ltd. 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容所產生或因依 賴該等內容而引致的任何損失承擔任何責任。 江西一脈陽光集團股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2522） 補充公告 有關截至2024年12月31日止年度的年報 茲提述江西一脈陽光集團股份有限公司（「本公司」）截至2024年12月31日止年度 （「2024財年」）的年報（「年報」）。除另有說明外，本公告所用詞彙與年報所界定者 具有相同涵義。 董事會謹此根據上市規則附錄D2第24段就本公司監事的薪酬提供以下額外資料。 截至2024年12月31日止年度 | | | | 福利、 | 退休金 | 以股份 | | | --- | --- | --- | --- | --- | --- | --- | | | | | 醫療及 | 計劃 | 為基礎的 | | | 監事姓名 | 基本薪金 | 花紅 | 其他開支 | 僱主供款 | 付款 | 總計 | | | 人民幣千元 ...

一脉阳光是行业领先的医学影像服务供应商。截至 2024 年末，一脉阳光已 运营 106 个影像中心，覆盖全国 16 个省，是中国唯一一家为整个医学影像 产业链提供全面医学影像服务及价值的平台运营商。一脉阳光形成了"医学 影像中心服务+影像解决方案服务＋一脉云服务"三部分业务的服务能力输 出。公司通过四类影像中心提供影像检查及诊断、运营管理服务，其中区域 共享型和旗舰型中心贡献主要收入。公司计划构建多层次、全周期的医学影 像生态服务体系，锚定不同客户的差异化需求，提供远程诊断支持、信息化 流程重构、影像技术中心标准化建设等轻量化影像服务包。2024 年公司组建 了海外事业部，开启国际化业务元年。公司在医学影像信息化上已前瞻布局， 2015 年开始研发一脉云平台，2024 年参股孵化的影禾医脉正式发布全球首 个全模态全流程医学影像基座大模型，2025 年"CT 胸部病变标注数据"正 式通过上海数据交易所合规审核并成功上架，打造医学影像 AI 的完整闭环。 风险提示：放射和超声检查收费降价风险；市场竞争加剧风险；政策风险； 扩张不及预期的风险；财务风险。 投资建议：一脉阳光是国内医学影像服务龙头，扩张步伐稳健。AI ...

Business Operations and Expansion - The company has established 106 imaging centers across China, serving over hundreds of millions of patients[8]. - The company is positioned as one of the largest medical imaging data producers in China, with the fastest data accumulation and the broadest population coverage[13]. - The company is expanding its global market presence through partnerships with Huawei and iFlytek, focusing on localized cooperation[13]. - The company is transitioning from a technology service provider to a data asset operator following its inclusion in the Hong Kong Stock Connect[11]. - The company plans to expand its overseas market presence, having already established services in regions including Africa, North Asia, East Asia, Southeast Asia, Israel, and the Middle East[15]. - The company established an overseas business unit in 2024, creating a network covering regions such as Hong Kong, Macau, Southeast Asia, the Middle East, and Africa, marking the beginning of its overseas market expansion[23]. - The company aims to leverage its position as a Hong Kong-listed entity to enhance its international market reach and establish itself as a leading medical imaging service provider[15]. - The company is actively expanding its imaging center network through investments, acquisitions, and partnerships with quality social capital medical institutions[31]. - The company is focused on optimizing operational efficiency through digital management systems and enhancing its core competitiveness in the medical imaging sector[21]. - The company aims to strengthen its market position by exploring partnerships with high-quality medical institutions and leveraging industry funds for market expansion through acquisitions and mergers[23]. Financial Performance - Revenue for the year ended December 31, 2024, was RMB 760.6 million, a decrease of 18.1% compared to RMB 928.9 million in 2023[19]. - The company reported a net loss of RMB 58.9 million for 2024, a decline of 260.9% from a profit of RMB 36.6 million in 2023[19]. - EBITDA decreased by 34.7% to RMB 165.2 million in 2024 from RMB 252.9 million in 2023[19]. - The decline in revenue and profit is attributed to macroeconomic fluctuations and regulatory adjustments in the healthcare sector, leading to delays in project deliveries[20]. - Revenue from imaging center services for the year ending December 31, 2024, was approximately RMB 605.7 million, a decrease of 5.1% compared to RMB 638.1 million for the year ending December 31, 2023, primarily due to delays in the operation of several newly established imaging centers until 2025[30]. - Revenue from imaging solution services for the year ended December 31, 2024, was approximately RMB 137.6 million, a decrease of 50.6% compared to RMB 278.4 million for the year ended December 31, 2023, primarily due to delays in delivery of certain agreements to 2025[36]. - Revenue from the Yimai Cloud service for the year ended December 31, 2024, was approximately RMB 17.3 million, an increase of 38.8% from RMB 12.5 million for the year ended December 31, 2023, driven by the establishment of a "smart medical imaging ecosystem" and data asset commercialization[39]. - The company's total revenue for the year ended December 31, 2024, was approximately RMB 760.6 million, a decrease of 18.1% compared to RMB 928.9 million for the year ended December 31, 2023[51][53]. Research and Development - The company invested RMB 35.9 million in R&D over the past three years, providing services to 5,000 patients and conducting over 1.23 million remote consultations[15]. - The company launched the world's first full-modal full-process medical imaging foundation model in December 2024, marking a transition from the "1.0 era" of single disease models to the "2.0 era" of foundational models[24]. - The company is committed to exploring the integration of data and medical services, enhancing its capabilities in delivering regional smart imaging solutions through AI and big data[91]. - The company is developing AI tools for various applications, including patient diagnosis and quality control, to create a comprehensive smart imaging solution[94]. - The company is focused on promoting high-quality development of medical institutions through clinical and imaging interaction[99]. Corporate Governance - The company has established three specialized committees within the board: the Audit Committee, the Remuneration Committee, and the Nomination Committee[130]. - The company has adhered to the corporate governance code and achieved most of the recommended best practices since its listing[127]. - The board consists of nine members, including four executive directors, two non-executive directors, and three independent non-executive directors, with a term of three years[128]. - The company has appointed independent non-executive directors, ensuring that at least one possesses appropriate professional qualifications or financial management expertise, in compliance with listing rules[135]. - The company has established effective communication channels for directors to express opinions openly and confidentially when necessary[143]. Talent Development and Management - The company aims to strengthen its talent development system, focusing on cultivating professionals with medical backgrounds and business management skills to support market expansion[90]. - Employee welfare expenses increased to approximately RMB 220.6 million in 2024 from RMB 201.7 million in 2023, reflecting the company's commitment to competitive compensation and benefits[77]. - The management team has extensive experience in the healthcare industry, with the chairman having over 21 years of experience in corporate management and healthcare[104]. - The company is committed to establishing and maintaining risk management and internal control systems suitable for its business operations[200]. Market Trends and Future Strategies - The company anticipates a recovery in demand for medical imaging services by the end of 2024, driven by national healthcare infrastructure policies[20]. - Future strategies include developing regional shared imaging centers in areas with imbalanced medical resources and exploring various investment cooperation strategies[78]. - The company aims to enhance its flagship imaging centers' operational capabilities in high-demand urban areas while exploring strategic partnerships with internet hospitals[79]. - The company believes that its long-term strategic vision and solid business advancement will gradually realize the vision of "focusing on global resources, making health borderless"[40]. - The company is committed to sustainable development by reducing energy consumption through cloud film technology and ensuring proper waste management practices[96].

Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 760,591 thousand, a decrease of 18.1% compared to RMB 928,914 thousand in 2023[3]. - The company reported a net loss of RMB 58,858 thousand for the year, a significant decline of 260.9% from a profit of RMB 36,574 thousand in the previous year[3]. - EBITDA decreased by 34.7% to RMB 165,247 thousand from RMB 252,940 thousand in 2023[3]. - Gross profit for the same period was RMB 277,332 thousand, down 16.6% from RMB 332,597 thousand in 2023[8]. - The company's revenue for the year ended December 31, 2024, was RMB 760,591 thousand, a decrease of 18.1% compared to RMB 928,914 thousand in 2023[8]. - The company reported a net loss of RMB 58,858 thousand for 2024, compared to a profit of RMB 36,574 thousand in 2023, marking a significant decline[10]. - Administrative expenses increased to RMB 223,635 thousand in 2024, up 23.1% from RMB 181,675 thousand in 2023[8]. - The company's cash and cash equivalents rose to RMB 262,387 thousand in 2024, compared to RMB 188,835 thousand in 2023, reflecting a 39.0% increase[12]. - The total equity attributable to the owners of the company increased to RMB 1,455,648 thousand in 2024, up from RMB 1,292,627 thousand in 2023[13]. - The company's total revenue for the year ended December 31, 2024, was approximately RMB 760.6 million, a decrease of 18.1% compared to RMB 928.9 million for the year ended December 31, 2023[69]. - The decline in overall revenue was primarily due to fluctuations in the domestic macro environment and adjustments in the healthcare industry reform process, leading to delays in the delivery of certain imaging solutions and the operation of new imaging centers until 2025[70]. Business Expansion and Development - The company successfully listed on the Hong Kong Stock Exchange on June 7, 2024, raising approximately HKD 183.48 million to expand its imaging center network and seek strategic partnerships[6]. - A total of 18 new imaging center projects were developed, and 17 projects were put into operation, bringing the total to 106 operational centers across 16 provinces and municipalities in China[7]. - The company established a new overseas business department in 2024, expanding its market presence in regions including Hong Kong, Macau, Southeast Asia, the Middle East, and Africa[7]. - The company is actively exploring partnerships with leading medical institutions and industry players to enhance its competitive position in the market[7]. - The company is focusing on three growth areas: expanding deep service projects with public healthcare systems and large internet hospitals, commercializing imaging big data in clinical research and AI, and leveraging flexible imaging service modules for brand building and overseas expansion[45]. - The company is actively exploring diverse methods for expanding its imaging center business, including investment, mergers, and acquisitions, to enhance its network layout and construction[50]. - The company aims to enhance overseas market presence through a "product + service + brand" strategy, focusing on long-term growth[58]. - The company is committed to building a robust repair system in collaboration with maintenance service providers to support its medical imaging network[100]. Research and Development - The company launched the first global full-modal full-process medical imaging foundation model in December 2024, marking a transition to the "2.0 era" in medical imaging AI[7]. - The company aims to leverage AI technology and data governance to drive innovation and digital transformation in the medical imaging sector[7]. - The company has obtained 95 software copyrights and 2 medical device registration certificates related to its Yimai Cloud platform, along with 1 granted invention patent and 4 pending patent applications[56]. - The company plans to develop AI tools based on natural language processing and knowledge graphs to enhance various aspects of patient care, imaging diagnosis, quality control, and business data analysis, aiming to create a comprehensive smart imaging solution[107]. Operational Efficiency and Management - The company is focusing on optimizing its business rhythm and aligning its imaging solutions delivery with customer needs for 2025[4]. - The company is committed to enhancing its core capabilities in management, information technology, design, and professional imaging services, aiming to influence the development and efficiency of healthcare institutions[113]. - The company is focused on deepening the integration of AI and big data in medical services, aiming to enhance its regional smart imaging solutions[105]. - The company is investing in management systems to promote operational efficiency and quality control across imaging centers[106]. - The company intends to improve operational management capabilities by enhancing training systems and attracting high-skilled medical imaging and management talent[102]. Financial Position and Liabilities - The total assets of the company as of December 31, 2024, amounted to RMB 2,263,788 thousand, an increase from RMB 1,878,658 thousand in 2023[12]. - The company’s total liabilities increased to RMB 779,757 thousand in 2024, compared to RMB 543,544 thousand in 2023, indicating a rise of 43.5%[13]. - The company's financial costs for 2024 were RMB 25,272 thousand, slightly higher than RMB 24,791 thousand in 2023[8]. - The company's trade payables to third parties increased to RMB 26,485,000 in 2024 from RMB 23,482,000 in 2023, reflecting a growth of approximately 12.7%[41]. - The company reported a decrease in cash generated from operating activities to approximately RMB 12.7 million for the year ended December 31, 2024, down from RMB 201.4 million for the year ended December 31, 2023, due to delayed payments from downstream medical institutions[85]. Strategic Partnerships and Collaborations - A strategic cooperation agreement was signed with Huawei Cloud in September 2024 to jointly participate in government-level projects and develop regional medical imaging sharing centers[46]. - The company aims to build a comprehensive ecosystem around "technology + data + industry" to enhance its core imaging services and establish deep strategic partnerships with leading industry players[45]. - The company is committed to enhancing ecological collaboration with upstream and downstream companies in the medical imaging industry to enhance operational efficiency and industry position[99]. Market Trends and Regulatory Environment - Recent government policies support the healthcare sector's development, aligning the company's business model with national strategies for healthcare reform, which provides significant growth opportunities[110]. - New pricing guidelines for radiological services, including digital imaging processing and cloud storage, are expected to lower patient costs and improve hospital diagnostic capabilities, driving the development of the medical imaging industry[114].

Investment Rating - The report maintains a "BUY" rating for Rimag Group with a new target price of HK$52.39, reflecting a 16.3% upside from the current price of HK$45.05 [4][6]. Core Insights - Rimag Group is positioned to benefit from the standardization of medical imaging data, which is crucial for advancing AI applications in healthcare. The company's initiatives in data standardization and its extensive network of medical imaging centers enhance its competitive edge [1][6]. - The introduction of the MIIA Radiological Foundation Model by Rimag's subsidiary, Medical Image Insights, aims to address the limitations of conventional medical imaging AI products by providing adaptability across multiple imaging tasks [2]. - A strategic collaboration with Xunfei Healthcare is expected to leverage Rimag's data assets and enhance its positioning in AI-enabled healthcare, focusing on joint market development and research initiatives [6]. Financial Summary - Revenue for FY22 was RMB 784 million, with a projected increase to RMB 1,050 million in FY25, reflecting a year-on-year growth of 18.0% [3][9]. - The net profit is expected to recover from a loss of RMB 15 million in FY24 to a profit of RMB 38 million in FY25, with further growth to RMB 64 million in FY26 [3][9]. - The company's price-to-sales (P/S) ratio is projected to decrease from 16.8x in FY24 to 14.3x in FY25, indicating a more favorable valuation as revenue grows [3][9]. Share Performance - Rimag's share price has shown significant volatility, with a 1-month increase of 21.8% and a 6-month increase of 147.8% [6]. - The market capitalization of Rimag Group is approximately HK$16,051.8 million, with an average turnover of HK$4.1 million over the past three months [4][6]. Strategic Initiatives - Rimag has been proactive in standardizing medical imaging examinations through its Rimag Cloud platform, which is expected to enhance the quality and availability of imaging data for AI applications [1][6]. - The company's dual role as a third-party imaging service provider and a data standardization pioneer positions it uniquely to capitalize on the growing demand for AI-driven healthcare solutions [1][6].

Summary of Conference Call on Medical Imaging Industry and Company Insights Company and Industry Overview - The conference call featured a leading company in China's third-party medical imaging services, specifically focusing on AI applications in medical imaging and the overall industry dynamics [1][2] - The company, 一脉阳光 (Yimai Yangguang), is recognized as the market leader in the third-party medical imaging sector in China [2][5] Core Insights and Arguments - The third-party medical imaging industry in China is still in its early stages, having emerged after the introduction of national standards in 2016, with significant growth potential [6][7] - The industry faces challenges due to uneven distribution of medical resources, particularly a shortage of qualified imaging doctors in grassroots healthcare institutions [5][6] - The penetration rate of third-party imaging services in China is significantly lower than in developed countries, indicating a substantial growth opportunity [7][8] - The company has developed various operational models for imaging centers, focusing on high-end health checks and providing services to smaller hospitals and clinics [9][10] - The business model involves a 2B2C approach, where hospitals purchase imaging diagnostic services from the company, enhancing operational capabilities in grassroots healthcare [10][11] Strategic Partnerships and AI Integration - A strategic partnership with Xunfei Medical was highlighted, aimed at enhancing AI capabilities in medical imaging and developing integrated service models [1][15][41] - The collaboration focuses on deploying AI in real-world scenarios, particularly in grassroots healthcare settings, to improve diagnostic efficiency and accuracy [41][42] - The company is actively working on a foundational AI model for medical imaging, which aims to enhance diagnostic capabilities across various diseases and imaging modalities [25][29][31] Data and Technology Utilization - The company possesses a vast amount of imaging data, with an average of 20,000 to 30,000 scans per day, making it one of the largest holders of imaging data in China [22][23] - Emphasis was placed on the importance of high-quality, structured imaging data for training AI models, which is currently a bottleneck in the industry [37][38] - The company is exploring the monetization of medical imaging data and aims to establish a data trading platform to enhance the value of its data assets [58][59] Market Dynamics and Future Outlook - The company anticipates a significant market shift towards AI-driven medical imaging solutions, with expectations of rapid growth in the sector [33][51] - The focus will remain on expanding its network of imaging centers, particularly in underserved areas, with plans to open 15 to 20 new centers annually [49][50] - The company aims to leverage its technological advancements and partnerships to solidify its position as a leader in the evolving medical imaging landscape [51][60] Additional Important Points - The company is committed to addressing the healthcare needs of underserved populations by providing accessible imaging services [49] - There is a strong belief in the potential for AI to transform the medical imaging field, enhancing both efficiency and diagnostic accuracy [33][51] - The call concluded with an invitation for further engagement from investors, highlighting the company's openness to discussions and collaborations [60]

Financial Performance - Revenue for the first half of 2024 decreased by 21.9% year-on-year to RMB 413.713 million[5] - Gross profit for the first half of 2024 decreased by 15.4% year-on-year to RMB 159.659 million[5] - Net profit attributable to the company's owners for the first half of 2024 decreased by 91.1% year-on-year to RMB 3.836 million[5] - Adjusted EBITDA for the first half of 2024 decreased by 10.9% year-on-year to RMB 149.058 million[5] - Revenue from imaging center services was RMB 319.0 million, a 5.9% decrease compared to the same period in 2023 but a 6.7% increase compared to the second half of 2023[9] - Revenue from imaging solutions services was approximately RMB 85.2 million, a year-on-year decrease of 54.3% compared to RMB 186.5 million in the first half of 2023, and a quarter-on-quarter decrease of 7.3% compared to RMB 91.9 million in the second half of 2023[12] - Revenue from Yimai Cloud services was approximately RMB 9.6 million, a year-on-year increase of 123.3% compared to RMB 4.3 million in the first half of 2023, and a quarter-on-quarter increase of 17.1% compared to RMB 8.2 million in the second half of 2023[14] - The company's total revenue for the reporting period was approximately RMB 413.7 million, a year-on-year decrease of 21.9% compared to RMB 529.8 million in the first half of 2023, but a quarter-on-quarter increase of 3.7% compared to the second half of 2023[18] - Revenue from flagship imaging centers was RMB 60.4 million, a decrease from RMB 73.6 million in the first half of 2023[18] - Revenue from regional shared imaging centers was RMB 182.7 million, slightly down from RMB 184.7 million in the first half of 2023[18] - Revenue from specialty medical consortium imaging centers was RMB 54.0 million, down from RMB 59.2 million in the first half of 2023[18] - Revenue from cloud platform services was RMB 5.6 million, an increase from RMB 4.3 million in the first half of 2023[18] - Gross profit decreased by 15.3% from RMB 188.6 million in the first half of 2023 to RMB 159.7 million in the first half of 2024, primarily due to reduced inspection volumes at imaging centers caused by macroeconomic slowdown and market changes[21] - Gross margin increased from 35.6% in the first half of 2023 to 38.6% in the first half of 2024, driven by higher revenue contribution from imaging center services and improved cost control measures[22] - Sales expenses decreased by 4.3% from RMB 34.5 million in the first half of 2023 to RMB 33.0 million in the first half of 2024, mainly due to reduced offline marketing activities[23] - Administrative expenses increased by 37.0% from RMB 81.1 million in the first half of 2023 to RMB 111.1 million in the first half of 2024, primarily due to higher listing-related expenses as the global offering progressed[24] - R&D expenses decreased by 3.4% from RMB 5.9 million in the first half of 2023 to RMB 5.7 million in the first half of 2024, mainly due to cost control on travel expenses for R&D personnel[25] - Net finance costs decreased by 7.5% from RMB 10.7 million in the first half of 2023 to RMB 9.9 million in the first half of 2024, primarily due to reduced weighted average balances of bank borrowings and finance leases[26] - Net profit decreased by 97.9% from RMB 47.3 million in the first half of 2023 to RMB 1.0 million in the first half of 2024, mainly due to macroeconomic slowdown and listing-related expenses[28] - Adjusted EBITDA decreased by 10.9% from RMB 167.3 million in the first half of 2023 to RMB 149.1 million in the first half of 2024, reflecting the impact of macroeconomic conditions and listing-related costs[29][31] - Adjusted net profit for the reporting period was RMB 35.9 million, a decrease of 39.5% compared to RMB 59.3 million in the same period last year[32] - Revenue for the six months ended June 30, 2024, was RMB 413,713 thousand, a decrease from RMB 529,779 thousand in the same period in 2023[89] - Gross profit for the six months ended June 30, 2024, was RMB 159,659 thousand, down from RMB 188,631 thousand in the same period in 2023[89] - Operating profit for the six months ended June 30, 2024, was RMB 15,378 thousand, significantly lower than RMB 73,079 thousand in the same period in 2023[89] - Net profit attributable to the company's owners for the six months ended June 30, 2024, was RMB 3,836 thousand, compared to RMB 42,979 thousand in the same period in 2023[89] - Basic earnings per share were RMB 0.011 for the six months ended June 30, 2024, compared to RMB 0.127 in the same period in 2023[126] - The company's basic and diluted earnings per share for the six months ended June 30, 2024, were both RMB 0.011, down from RMB 0.127 in the same period in 2023[89] Imaging Center Operations - The company added 12 new imaging center projects and put 9 new imaging centers into operation during the reporting period[7] - As of June 30, 2024, the company's medical imaging center network covered 17 provinces, autonomous regions, and municipalities in China, with a total of 105 operational imaging centers[7] - The company developed 12 new imaging centers in the first half of 2024, bringing the total number of developed imaging centers to 119[9] - As of June 30, 2024, the company operated 105 imaging centers, including 9 flagship centers, 25 regional shared centers, 54 specialized medical alliance centers, and 17 operation management centers[10] - There were 14 imaging centers under construction as of June 30, 2024, expected to begin operations in the second half of 2024[10] - The company launched specialized imaging examinations for conditions such as scoliosis, cardiovascular diseases, Alzheimer's disease, and rectal cancer, contributing to high-value income[11] - The company organized 375 clinical academic exchanges to promote new technologies and examinations, supporting the development of specialized clinics[11] - The company's total revenue for the reporting period was RMB 413.7 million, primarily from imaging center services, imaging solution services, and Yimai Cloud services[8] - Revenue from imaging center services for the six months ended June 30, 2024, was RMB 318,953 thousand, a decrease from RMB 339,025 thousand in the same period in 2023[116] - The company's flagship imaging centers generated revenue of RMB 60,424 thousand in 2024, down from RMB 73,607 thousand in 2023, while regional shared imaging centers remained stable at RMB 182,677 thousand[116] - The company's equipment maintenance services, introduced in 2024, contributed RMB 628 thousand to revenue, a new addition compared to the previous year[116] Strategic Initiatives and Future Plans - The company successfully listed on the Hong Kong Stock Exchange on June 7, 2024, raising net proceeds of approximately HKD 183.48 million[7] - The company established the "Medical Imaging Examination Project Name and Coding Standard" to standardize and unify medical imaging data, which was officially released on January 1, 2024, and implemented on March 1, 2024[7] - The company plans to expand its medical imaging center network and imaging solution services, focusing on regions with imbalanced medical resources and government support[45] - The company plans to further develop specialized medical alliances and operational management imaging centers to extend and expand medical imaging services, aiming to increase market penetration and achieve market expansion[46] - The company intends to establish or acquire more flagship imaging centers in high-tier cities with large populations, high consumption levels, and significant demand differentiation[46] - The company plans to provide diversified medical imaging services and strategically select regions with strong development potential, offering imaging solutions and Yimai Cloud services for rapid business expansion[46] - The company aims to expand overseas by establishing or acquiring imaging centers in countries with value gaps, medical demand, and policy support[46] - The company focuses on disease-specific imaging services, such as cardiovascular and epilepsy clinics, to better serve targeted patient needs[47] - The company promotes imaging empowerment in disease prevention, leveraging imaging in areas like sudden death prevention, tumor early screening, and cardiovascular health[48] - The company plans to strengthen data standardization and build data application platforms for imaging examination process standardization, big data management, and precision medical quality control[50] - The company will invest in AI and deep learning technologies to develop tools for patient consultation, medical guidance, and report interpretation, enhancing diagnostic and operational efficiency[50] - The company aims to enhance talent cultivation through the Yimai Imaging Academy, focusing on training professionals with both medical and management expertise[51] - The company plans to collaborate with universities to establish medical imaging internship bases and professional talent development programs[51] - The company plans to deepen strategic cooperation with upstream and downstream industry stakeholders, including equipment providers, maintenance companies, medical imaging AI service providers, and industry associations, to enhance operational efficiency and consolidate its industry position[52] - The company aims to attract more medical imaging AI service providers to integrate their products into its AI platform, enriching its AI offerings and improving service capabilities[52] - The company is actively tracking acquisition or investment opportunities in the medical imaging services sector to expand service coverage and capabilities[52] - The company is interested in investing in or incubating health management companies to create a medical imaging service platform for commercial and individual clients, broadening its business scope[53] - The company is exploring investments in cloud services, AI, and big data applications to complement its existing business[53] - The company is considering investments in companies with advanced technology or R&D capabilities to develop medical imaging hardware, software, or services for commercial use[53] - The company has benefited from favorable government policies aimed at deepening healthcare reform and promoting the healthy development of the medical industry[54] - The company has extended its business network from first- and second-tier cities to county-level administrative regions, providing high-quality imaging diagnostic services to grassroots medical institutions[55] - The company is leveraging digital and intelligent technologies to drive operational efficiency and product innovation in medical imaging services[56] - The company is focusing on technological innovation, particularly in AI, to enhance medical imaging diagnostic capabilities and participate in state-owned enterprise reforms[56] - The company completed a global offering on June 7, 2024, issuing 17,816,000 H shares at HKD 14.98 per share, with net proceeds of approximately HKD 183.48 million[58] - 50% of the net proceeds (HKD 91.73 million) will be used to expand the medical imaging center network, with HKD 26.70 million already utilized as of June 30, 2024[58] - 20% of the net proceeds (HKD 36.70 million) will be allocated for strategic collaborations and acquisitions in the medical imaging field, with HKD 8.62 million already utilized[58] - Another 20% of the net proceeds (HKD 36.70 million) will be used to expand business into overseas regions with limited medical resources, with HKD 2.15 million already utilized[58] - 10% of the net proceeds (HKD 18.35 million) will be used for working capital and general corporate purposes, with none utilized as of June 30, 2024[59] - The company expects to fully utilize the remaining net proceeds (HKD 146.00 million) by December 31, 2025[59] Corporate Governance and Shareholding - The company has complied with all applicable corporate governance code provisions since its listing date until June 30, 2024[60] - No interim dividend was recommended for the reporting period[65] - As of June 30, 2024, the company's CEO, Chen Chaoyang, holds 18,213,291 H shares (5.11% of total issued shares) and 40,875,297 unlisted shares (11.47% of total issued shares) through controlled entities[69] - Xu Ke, Chairman and Executive Director, holds a 5% beneficial interest in Liaoning Yimai Sunshine Medical Imaging Diagnostic Center with a registered capital of RMB 500,000[71] - Nanchang Yimai holds 18,213,291 shares, representing 5.11% of the total issued shares and 9.21% of the relevant share class[72] - Beijing Gaosheng Advisory Co., Ltd. holds 30,882,270 H shares, representing 8.67% of the total issued shares and 15.61% of the relevant share class[72] - Goldman Sachs Holding (Mauritius) Limited holds 30,882,270 H shares, representing 8.67% of the total issued shares and 15.61% of the relevant share class[72] - Beijing Renbao Health Pension Industry Investment Fund holds 19,289,403 H shares, representing 5.41% of the total issued shares and 9.75% of the relevant share class[73] - Ningbo Meishan Bonded Port Area Baishan Investment Management Partnership holds 17,647,051 unlisted shares, representing 4.95% of the total issued shares and 11.13% of the relevant share class[73] - Ganjiang New Area Innovation Industry Investment Co., Ltd. holds 14,558,319 unlisted shares, representing 4.09% of the total issued shares and 9.19% of the relevant share class[73] - Gu Junjun holds 9,758,849 unlisted shares, representing 2.74% of the total issued shares and 6.16% of the relevant share class[74] - Wang Shihe holds 9,755,070 unlisted shares, representing 2.74% of the total issued shares and 6.15% of the relevant share class[74] - JD Health International Inc. holds 8,175,910 unlisted shares, representing 2.29% of the total issued shares and 5.16% of the relevant share class[74] - Total issued shares as of June 30, 2024: 356,311,832 shares (including 158,495,832 unlisted shares and 197,816,000 H-shares)[75] - Employee incentive platform (Nanchang Yimai) holds 59,088,588 shares (18,213,291 H-shares and 40,875,297 unlisted shares) as of June 30, 2024[75] - Goldman Sachs Holdings (Mauritius) Limited indirectly holds 30,882,270 H-shares through Beijing Gaosheng Advisory Co., Ltd. as of June 30, 2024[75] - PICC Health Pension Industry Investment Fund indirectly holds 19,289,403 H-shares as of June 30, 2024[75] - Ningbo Meishan Bonded Port Area Baishan Investment Management Partnership indirectly holds 17,647,051 unlisted shares as of June 30, 2024[76] - Ganjiang New Area Innovation Industry Investment Co., Ltd. indirectly holds 14,558,319 unlisted shares as of June 30, 2024[77] - JD Health International Inc. indirectly holds 8,175,910 unlisted shares through Suqian JD Yingzheng Enterprise Management Consulting Co., Ltd. as of June 30, 2024[77] - The 2021 Share Incentive Plan holds 20,000,001 shares, representing approximately 5.61% of the total issued shares as of June 30, 2024[79] - The 2021 Share Incentive Plan aims to recognize and retain key employees, with rewards subject to conditions determined by the Board Office[80] - Participants in the 2021 Share Incentive Plan are entitled to dividends from the date of grant until the vesting date[83] - The company awarded a total of 20,000,001 shares to 20 participants under the incentive plan, with all awards vested as of June 30, 2024[88] Financial Position and Cash Flow - Cash and cash equivalents increased to RMB 305.5 million as of June 30, 2024, up from RMB 188.8 million at the end of 2023, primarily due to proceeds from the global offering[35] - Operating cash flow decreased to RMB 34.1 million for the six months ended June 30, 2024, compared to RMB 97.4 million in the same period last year, mainly due to reduced receivables from imaging center and imaging solution services[35] - Total borrowings increased to RMB 265.4 million as of June 30, 2024, up from RMB 210.0 million at the end of 2023, with a debt-to-equity ratio of 17.0%, up from 15.7%[36] - Net current assets increased by 47.3% to RMB 448.1 million as of June 30, 2024, compared to RMB 304.3 million at the end of 2023, driven by proceeds from the global offering and increased trade receivables[37] - Capital expenditures for the reporting period totaled RMB 180.3 million, primarily used for purchasing equipment and intangible assets such as software[41] - Total assets as of June 30, 2024, were RMB 2,178,977 thousand, up from RMB 1,878,658 thousand as of December 31, 2023[91] - Cash and cash equivalents as of June 30, 2024, were RMB 305,535 thousand, an increase from RMB 188,835 thousand as of December 31, 2023[91] - Total non-current assets as of June 30, 2024, were RMB 1,357,404 thousand, up from RMB 1,258,179 thousand as of December 31, 2023[91] - Total current assets as of June 30, 2024, were RMB 821,573

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 413,713 thousand, a decrease of 21.9% compared to RMB 529,779 thousand for the same period in 2023[1]. - Gross profit for the same period was RMB 159,659 thousand, down 15.4% from RMB 188,631 thousand, with a significant drop in net profit attributable to shareholders of 91.1%, from RMB 42,979 thousand to RMB 3,836 thousand[1][4]. - EBITDA decreased by 26.5% to RMB 114,132 thousand from RMB 155,321 thousand year-on-year, while adjusted EBITDA fell by 10.9% to RMB 149,058 thousand from RMB 167,309 thousand[1][5]. - The company reported a significant decrease in operating profit, which fell to RMB 15,378 thousand from RMB 73,079 thousand year-on-year[4]. - The adjusted net profit for the period was RMB 35,888 thousand, down 39.5% from RMB 59,280 thousand in the previous year[1][5]. - The company reported a profit of RMB 3,836 thousand for the six months ended June 30, 2024, compared to a loss of RMB 447,843 thousand in the previous period[10]. - Profit for the period decreased by 97.9% from approximately RMB 47.3 million for the six months ended June 30, 2023, to approximately RMB 1.0 million for the six months ended June 30, 2024, primarily due to macroeconomic slowdown and listing-related expenses[48]. - Adjusted net profit decreased by 39.5% from approximately RMB 59.3 million for the six months ended June 30, 2023, to approximately RMB 35.9 million for the six months ended June 30, 2024[49]. Capital and Assets - Total assets increased to RMB 2,178,977 thousand as of June 30, 2024, up from RMB 1,878,658 thousand as of December 31, 2023, representing a growth of approximately 16%[6]. - Current assets rose to RMB 821,573 thousand, compared to RMB 620,479 thousand at the end of 2023, marking an increase of about 32%[6]. - Total equity attributable to owners increased to RMB 1,524,316 thousand, up from RMB 1,292,627 thousand, reflecting a growth of approximately 18%[6]. - Cash and cash equivalents increased to RMB 305,535 thousand from RMB 188,835 thousand, representing a growth of approximately 62%[6]. - Total liabilities increased to RMB 615,873 thousand from RMB 543,544 thousand, reflecting a growth of approximately 13%[8]. - Non-current liabilities totaled RMB 242,420 thousand, an increase from RMB 227,360 thousand, indicating a rise of about 7%[8]. - Total borrowings as of June 30, 2024, amounted to approximately RMB 265.4 million, an increase from RMB 210.0 million as of December 31, 2023, with a debt-to-equity ratio of 17.0%[56]. IPO and Fund Utilization - The company successfully listed its H shares on the Hong Kong Stock Exchange on June 7, 2024, raising approximately HKD 183.48 million[3]. - The company completed its IPO on June 7, 2024, on the Hong Kong Stock Exchange, enhancing its capital base[11]. - The net proceeds from the global offering will be utilized in accordance with the plans disclosed in the prospectus[74]. - The company plans to utilize 50.0% of the net proceeds for expanding its medical imaging center network, amounting to HKD 91.73 million, with HKD 26.70 million already used and HKD 65.03 million remaining[75]. - 20.0% of the net proceeds, equating to HKD 36.70 million, will be allocated for seeking strategic partnerships and acquisitions in the medical imaging sector, with HKD 8.62 million already utilized and HKD 28.08 million remaining[75]. - Another 20.0% of the net proceeds, also HKD 36.70 million, is designated for expanding business into overseas markets with high growth potential, with HKD 2.15 million already used and HKD 34.55 million remaining[75]. - The company will allocate 10.0% of the net proceeds, totaling HKD 18.35 million, for working capital and general corporate purposes, with no amount utilized yet[75]. - The total net proceeds amount to HKD 183.48 million, with HKD 37.48 million already used and HKD 146.00 million remaining, expected to be fully utilized by December 31, 2025[75]. Operational Developments - During the reporting period, the company expanded its medical imaging center network by developing 12 new projects and operationalizing 9 centers, bringing the total to 105 centers across 17 provinces[3]. - The company established a standardized medical imaging examination project naming and coding standard, which was officially implemented on March 1, 2024, to enhance data standardization and service quality[3]. - The company continues to focus on expanding its market presence and enhancing service capabilities in response to government initiatives aimed at improving grassroots healthcare[2]. - The company aims to expand its medical imaging center network and enhance its imaging solution services to solidify its industry leadership[64]. - The company plans to strategically invest in regions with unbalanced medical resources to establish or acquire regional shared imaging centers[64]. - The company has established flagship and regional shared imaging centers to enhance the quality of imaging diagnostic services in grassroots medical institutions[71]. - The company is focused on developing specialized clinics for specific diseases, such as cardiovascular and epilepsy clinics, to better serve local patient needs[66]. Revenue Streams - The flagship imaging center service generated revenue of RMB 60,424 thousand, down 17.9% from RMB 73,607 thousand in the previous year[19]. - Revenue from imaging center services was approximately RMB 319.0 million, a year-on-year decrease of 5.9% compared to RMB 339.0 million for the six months ended June 30, 2023, but a quarter-on-quarter increase of RMB 19.9 million or 6.7% compared to RMB 299.0 million in the second half of 2023[33]. - Revenue from imaging solution services was approximately RMB 85.2 million, a year-on-year decrease of 54.3% compared to RMB 186.5 million for the six months ended June 30, 2023[35]. - Revenue from the Yimai Cloud service reached approximately RMB 9.6 million, representing a 123.3% increase from RMB 4.3 million for the six months ended June 30, 2023[36]. - Revenue from imaging center services was RMB 318.9 million, showing relative stability despite external pressures[40]. - The decline in revenue from imaging solution services was primarily due to a slowdown in procurement demand from medical institutions[40]. - The overall demand for imaging solution services remains relatively stable despite regulatory pressures in the healthcare industry[40]. Expenses and Costs - Employee benefit expenses for the six months ended June 30, 2024, were RMB 100,487 thousand, up 7.8% from RMB 93,385 thousand in the same period last year[21]. - Depreciation of property, plant, and equipment increased to RMB 79,424 thousand from RMB 73,543 thousand, reflecting a rise of 7.8%[21]. - Selling expenses decreased by 4.3% from approximately RMB 34.5 million for the six months ended June 30, 2023, to approximately RMB 33.0 million for the six months ended June 30, 2024, mainly due to reduced offline marketing activities[43]. - Administrative expenses increased by 37.0% from approximately RMB 81.1 million for the six months ended June 30, 2023, to approximately RMB 111.1 million for the six months ended June 30, 2024, primarily due to increased listing expenses as the global offering progressed[44]. - R&D expenses decreased by 3.4% from approximately RMB 5.9 million for the six months ended June 30, 2023, to approximately RMB 5.7 million for the six months ended June 30, 2024, due to cost control on travel expenses for R&D personnel[45]. - Net financial costs decreased by 7.5% from approximately RMB 10.7 million for the six months ended June 30, 2023, to approximately RMB 9.9 million for the six months ended June 30, 2024, mainly due to a reduction in the weighted average balance of bank loans and finance leases[46]. Compliance and Governance - The company has adhered to all applicable corporate governance codes since its listing date until June 30, 2024[76]. - The audit committee, consisting of three members, has reviewed the unaudited interim financial information for the six months ending June 30, 2024, confirming compliance with applicable accounting standards[78]. - The company has confirmed compliance with the standard code for securities transactions by directors and supervisors since its listing date until June 30, 2024[77]. - No interim dividend has been recommended for the reporting period[79]. - There have been no significant post-reporting period events up to the announcement date[78].

Investment Rating - Initiate at BUY with a target price (TP) of HK$21.41, representing a 21.1% upside from the current price of HK$17.68 [3][4][12]. Core Insights - Rimag Group is a leading medical imaging service provider in China, holding the largest market share in terms of medical imaging centers, equipment units, and registrations by practicing radiologists [1][16]. - The medical imaging service market in China is projected to grow at a CAGR of 13.6%, reaching RMB661.5 billion by 2030, with the third-party medical imaging center market expected to grow at a CAGR of 30.7% to RMB18.6 billion by 2030 [1][7]. - Rimag's revenue increased at a CAGR of 25.3% from RMB592 million in 2021 to RMB928.9 million in 2023, with a projected CAGR of 23.3% from 2023 to 2026 [10][12][29]. Summary by Sections Investment Thesis - The third-party medical imaging center market in China has significant growth potential due to unmet demand for quality services and favorable government policies [6][7]. - Rimag is positioned to lead this market with a comprehensive suite of services and a strong operational model [7][8]. Market Overview - The medical imaging market in China faces challenges such as low equipment per capita and an imbalance in resource distribution, leading to long wait times in public hospitals [6][20]. - Rimag has established 97 imaging centers across 17 provinces, conducting approximately 20,000 examinations daily [8][16]. Business Model - Rimag operates a comprehensive medical imaging platform that includes imaging center services, imaging solution services, and Rimag Cloud services [22][24]. - The company provides operational management services to enhance the capabilities of regional and primary healthcare institutions [11][32]. Financial Performance - Rimag's attributable net profit increased from RMB0.4 million in 2022 to RMB44 million in 2023, with a net profit margin of 4.8% [10][29]. - Revenue from imaging center services accounted for 68.7% of total revenue in 2023, growing at a CAGR of 20.1% [36]. Competitive Landscape - Rimag holds 31 out of 163 third-party medical imaging center licenses in China, representing 19% of the total market [16][17]. - The company ranks second in revenue generated from imaging center services among all third-party operators in China [10][29].