Group 1: Xpeng Motors - Xpeng Motors delivered 15,613 smart electric vehicles in November, representing a year-on-year increase of 270% [1] - The total cumulative deliveries reached 82,155 vehicles by the end of November, a 285% increase year-on-year [1] - The P7 model accounted for 53,110 of the cumulative deliveries, while the newly launched P5 and G3i models also contributed significantly to the monthly figures [1] Group 2: Li Auto - Li Auto delivered 13,485 units of the Li ONE in November, marking a year-on-year growth of 190.2% [2] - The total deliveries for the first eleven months of 2021 reached 76,404 units, with cumulative deliveries since launch hitting 110,001 units [2] - The Li ONE achieved a record monthly delivery exceeding 13,000 units, becoming a preferred choice among Chinese mid-to-large SUVs [2] Group 3: Sinopec - Sinopec's controlling shareholder increased its stake by acquiring 35 million H-shares, representing approximately 0.03% of the total issued shares [3] - Following the acquisition, the controlling shareholder's total stake rose to 68.80% of the company's issued shares [3] - The shareholder plans to continue increasing its holdings, with a maximum target of 2% of the total issued shares [3] Group 4: Wuling Motors - Wuling Motors and Guangxi Automobile signed a letter of intent for asset restructuring and investment in Wuling New Energy [4] - Guangxi Automobile plans to integrate and restructure its new energy vehicle assets through Wuling New Energy, which will focus on R&D, manufacturing, and sales of new energy vehicles [4] - The investment includes approximately RMB 16 billion from Guangxi Automobile, RMB 10 billion from Wuling Motors, and RMB 3.06 billion from Wuling Industrial [4] Group 5: Cloudthink Technology - Cloudthink Technology reported a total billing amount of approximately RMB 5.116 billion for the first three quarters, reflecting a year-on-year growth of 88.99% [6]

Financial Performance - Revenue for the year ended December 31, 2024, increased by 0.7% to RMB 2,055,670,000 compared to RMB 2,041,858,000 in 2023[10] - Gross profit decreased by 11.7% to RMB 321,873,000, with a gross profit margin of 15.7%, down from 17.8% in the previous year[10] - Profit before taxation fell by 58.9% to RMB 63,055,000, while profit for the year dropped by 88.5% to RMB 10,473,000[10] - Adjusted EBITDA decreased by 21.2% to RMB 229,636,000 from RMB 291,309,000 in 2023[10] - Basic earnings per share decreased by 87.3% to 4.6 RMB cents, down from 36.2 RMB cents in the previous year[10] - The Group recorded a consolidated profit of RMB10.5 million, a significant year-on-year decrease of 88.5% compared to RMB91.0 million last year[27] - Revenue from the Group's self-owned hospitals decreased by 2.6% to RMB1,838.5 million, down from RMB1,887.9 million in the previous year[28] - The Group's Adjusted EBITDA decreased by 21.2% to RMB229.6 million, down from RMB291.3 million in the previous year, indicating solid core operations despite external factors[40] - The Group's total gross profit was RMB 321.9 million, a year-on-year decrease of 11.7% from RMB 364.4 million, with the overall gross margin declining to 15.7% from 17.8%[190] Revenue Breakdown - Revenue from cardiovascular related disciplines was RMB 258,977,000 in 2024, compared to RMB 271,010,000 in 2023[15] - Revenue from the rehabilitation and other healthcare services segment recorded revenue of RMB 128.4 million in 2024, down 9.1% from RMB 141.2 million in 2023[129] - Revenue from elderly healthcare services amounted to RMB12.9 million, a year-on-year increase of 1.5%, accounting for 0.6% of total revenue[176] - Revenue from haemodialysis services amounted to RMB75.8 million, accounting for 3.7% of total revenue, as this segment was newly acquired in January 2024[175] - Revenue from physical examination services dropped significantly to RMB107.2 million, a decrease of 29.6% year-on-year, representing 5.2% of total revenue[170] - Revenue from VIP healthcare services fell to RMB 95.0 million in 2024, representing a year-on-year decrease of 4.9%[127] - Revenue from rehabilitation hospitals and other healthcare services decreased by 26.4% to RMB 54.4 million in 2024, down from RMB 73.9 million in 2023[136] Operational Metrics - The number of outpatient visits in 2024 was 63.1 thousand, compared to 74.3 thousand in 2023[14] - The total number of inpatient visits increased to 76,968, representing a year-on-year increase of 3.5%, while the average spending per inpatient visit decreased by 2.8% to RMB 14,114.3[90] - The total number of surgical operations increased to 53,871, representing a year-on-year increase of 12.0%[90] - The total number of outpatient visits decreased to 1,499,016, representing a year-on-year decrease of 2.0%, while average spending per outpatient visit increased by 0.4% to RMB 430.2[90] - The number of haemodialysis procedures performed in 2024 exceeded 118,000, up from 90,000 in 2023[60] - The average length of stay at the Renkang Nursing Home decreased to 113.2 days in 2024 from 118.2 days in 2023, with an average bed utilization rate of 91.0%[145] Strategic Initiatives - The company aims to navigate challenges in the healthcare industry through its strategy of "Precision healthcare, Efficient Management and Sincere Service"[17] - The Group plans to strengthen the development of key specialties and enhance high-end healthcare services to meet rising patient expectations[44] - Future strategies include standardizing medical insurance and enhancing infection control and nursing quality management[45] - The Group aims to achieve accreditation as a five-star elderly care institution for Renkang Elderly Care Centre, focusing on service quality improvement[39] - The Group's strategy includes expanding the "Kanghua" brand in the Greater Bay Area, leveraging synergies from the acquisition of the Kanghua Haemodialysis Group[84] Market Trends and Challenges - The overall economic development in China remained steady, with GDP reaching RMB134.9 trillion, representing a year-on-year increase of 5.0% at constant price[24] - The healthcare market in China is moving towards greater efficiency and accessibility, driven by digital transformation and an aging population[22] - The Group faces challenges due to intensified national policy reforms and a decrease in post-COVID-19 related demand[23] - The healthcare industry is undergoing comprehensive reforms aimed at improving accessibility and affordability, including price transparency and value-based care[24] - Recent policy reforms and tightened social insurance payments are expected to continue impacting revenue growth negatively[170] Cost and Expenses - Staff-related costs increased by 7.4%, attributed to higher salary levels and a shortage of qualified professionals[184] - Administrative expenses rose by approximately 14.3% to RMB 277.1 million from RMB 242.4 million, mainly driven by an increase in administrative staff costs to RMB 99.5 million, up from RMB 84.1 million, reflecting an 18.2% year-on-year increase[199] - Finance costs surged by 96.0% to RMB 23.6 million from RMB 12.1 million, influenced by a one-off charge related to unamortised bank arrangement fees and the full repayment of a major bank loan[200] - The increase in rental expenses and property management expenses was approximately 13.4%, rising to RMB 26.6 million from RMB 23.4 million[199] Acquisitions and Investments - The Group completed the acquisition of a 70% equity interest in Dongguan Kanghua Haemodialysis Healthcare Investment Management Co., Ltd., enhancing its haemodialysis services[58] - The acquisition of the haemodialysis services business is expected to impact financial performance positively in the long term[187] - As of December 31, 2024, the total investment in the Kanghua Qingxi Healthcare Complex amounted to approximately RMB 229.2 million[158]

Financial Performance - Revenue increased by 0.7% to RMB 2,055.7 million compared to RMB 2,041.9 million in 2023[4] - Profit decreased by 88.5% to RMB 10.5 million from RMB 91.0 million in 2023[4] - Profit attributable to owners decreased by 87.3% to RMB 15.3 million from RMB 121.1 million in 2023[4] - Adjusted EBITDA decreased by 21.2% to RMB 229.6 million from RMB 291.3 million in 2023[4] - Basic earnings per share decreased by 87.3% to RMB 0.046 from RMB 0.362 in 2023[4] - The group recorded a consolidated profit of RMB 10.5 million, down 88.5% from RMB 91.0 million in the previous year, primarily due to a decline in revenue from self-owned hospitals[63] - Adjusted EBITDA for 2024 was RMB 229,636,000, down from RMB 291,309,000 in 2023, indicating a decline of approximately 21.2%[125] Dividends - The board proposed a final dividend of RMB 0.15 per share, compared to no dividend in 2023[4] - The company proposed a final dividend of RMB 0.15 per share for the year ending December 31, 2024, totaling approximately RMB 50,159,000, compared to no dividend in 2023[28] - The board has proposed a final dividend of RMB 0.15 per share for the year ending December 31, 2024, subject to shareholder approval[169] Assets and Liabilities - Non-current assets increased to RMB 1,631.1 million from RMB 1,529.5 million in 2023[7] - Current liabilities increased to RMB 873.6 million from RMB 766.7 million in 2023[7] - Total assets less current liabilities increased to RMB 1,867.9 million from RMB 1,858.3 million in 2023[7] - Cash and cash equivalents decreased to RMB 242.6 million from RMB 305.2 million in 2023[7] - Non-current liabilities increased to RMB 405,610,000 in 2024 from RMB 360,760,000 in 2023, representing an increase of approximately 12.4%[8] - Total equity decreased to RMB 1,462,347,000 in 2024 from RMB 1,497,527,000 in 2023, reflecting a decline of about 2.3%[8] - The company's net assets stood at RMB 1,462,347,000 in 2024, down from RMB 1,497,527,000 in 2023, indicating a decrease of approximately 2.3%[8] - The company's total equity attributable to owners increased slightly to RMB 1,439,522,000 in 2024 from RMB 1,424,185,000 in 2023, showing a growth of about 1.1%[8] Revenue Segments - Hospital services generated revenue of RMB 1,838,532,000 in 2024, compared to RMB 1,887,888,000 in 2023, indicating a decrease of about 2.6%[21] - The blood dialysis services segment reported revenue of RMB 75,770,000 in 2024, marking the introduction of this service following the acquisition of Dongguan Kanghua Dialysis Medical Investment Management Co., Ltd.[19] - The revenue from rehabilitation and other medical services was RMB 128,449,000 in 2024, a decrease from RMB 141,243,000 in 2023, representing a decline of approximately 9.0%[21] - The hospital services segment generated revenue of RMB 1,838.5 million, a decrease of 2.6% from RMB 1,887.9 million in 2023, with a slight decline of 0.9% in overall patient visits[64] - The rehabilitation and other medical services segment recorded revenue of RMB 128.4 million, down 9.1% from RMB 141.2 million in 2023, mainly due to a decrease in patient admissions and average spending[65] Operational Metrics - Total inpatient visits increased to 76,968, a year-on-year increase of 3.5% compared to 74,337 in 2023[69] - Average expenditure per inpatient decreased to RMB 14,114.3, a year-on-year decrease of 2.8% from RMB 14,523.2 in 2023[69] - Overall bed utilization rate rose to 74.3%, up from 71.9% in 2023 due to the increase in inpatient numbers[69] - Total outpatient visits decreased to 1,499,016, a year-on-year decrease of 2.0% from 1,530,169 in 2023[69] - Total health check visits increased to 181,661, a year-on-year increase of 7.1% from 169,651 in 2023[69] - Total surgical procedures increased to 53,871, a year-on-year increase of 12.0% from 48,105 in 2023[69] Employee Costs - The total employee costs rose to RMB 691,120,000 in 2024, up from RMB 635,071,000 in 2023, representing an increase of approximately 8.8%[26] - The total employee cost for the reporting period, excluding directors' remuneration, is approximately RMB 686.6 million, compared to RMB 631.8 million in 2023[163] - The group has a total of 4,320 full-time employees as of December 31, 2024, an increase from 3,946 in 2023[163] Investments and Acquisitions - The company agreed to acquire 70% of Kanghua Hemodialysis Group for RMB 7,700,000, completed on January 9, 2024, with recognized goodwill amounting to RMB 114,224,000[48] - The group plans to sell 55% of its stake in Kangxin Hospital for RMB 34.9 million, with the sale agreement signed on January 9, 2025[134] - The group has classified Kangxin Hospital's assets and liabilities as held for sale as of December 31, 2024[133] Financial Position - The group continues to maintain a strong financial position with sufficient liquidity to meet operational funding needs for at least the next twelve months[137] - The group’s debt-to-equity ratio as of December 31, 2024, is 15.7%, down from 21.3% in 2023[162] Future Outlook - The company aims to expand its "big health" business model in response to the rapidly aging population in China, which presents substantial growth potential in the healthcare sector[59] - The group plans to enhance healthcare accessibility by increasing community health centers and strengthening telemedicine, particularly in rural and underserved areas[97] - By 2030, China's medical expenditure is expected to reach RMB 20.5 trillion, with the board maintaining an optimistic outlook for the healthcare industry in 2025 despite recent challenges[96] Compliance and Governance - The audit committee has reviewed the annual performance for the fiscal year ending December 31, 2024, confirming compliance with applicable accounting standards[174] - The preliminary announcement of the consolidated financial statements for the year ending December 31, 2024, has been verified by the auditors, ensuring consistency with the audited financial figures[175] - The company expresses gratitude to the management team and employees for their contributions and to shareholders and business partners for their continued support[177]

C 廣東康華醫療集團股份有限公司 Guangdong Kanghua Healthcare Group Co., Ltd.* ( 前稱廣東康華醫療股份有限公司 ) (Formerly known as Guangdong Kanghua Healthcare Co., Ltd.) ( 於中華人民共和國註冊成立的股份有限公司 ) (A joint stock company incorporated in the People's Republic of China with limited liability) 股份代號 Stock Code:3689 * 僅供識別 For identification purposes only t 2024 INTERIM REPORT 中 報 urarshand shara STERNET Contents 目錄 2 Corporate Information 公司資料 4 Financial Highlights 財務概覽 6 Management Discussion and Analysis 管理層討論及分析 44 Corporate Governance Hig ...

Financial Performance - Revenue for the six months ended June 30, 2024, decreased by 0.3% to RMB 984.5 million compared to RMB 987.5 million for the same period in 2023[1] - The company reported a loss of RMB 24.7 million for the current period, contrasting with a profit of RMB 29.4 million in the same period last year[1] - Loss attributable to owners of the company was RMB 19.5 million, compared to a profit of RMB 50.7 million in the previous year[1] - Adjusted EBITDA decreased by 29.3% to RMB 91.3 million from RMB 129.2 million year-on-year[1] - Basic and diluted loss per share was RMB 5.8 cents, compared to earnings of RMB 15.1 cents per share in the prior period[2] - The total revenue for the six months ended June 30, 2024, was RMB 984.5 million, a slight decrease of 0.1% compared to RMB 987.5 million for the same period in 2023[9] - The group recorded a consolidated loss of RMB 24.7 million, compared to a profit of RMB 29.4 million in the same period last year[45] - Total gross profit decreased to RMB 146.4 million, down 14.4% from RMB 171.0 million, with a gross margin of 14.9% compared to 17.3% in the previous period[76] Revenue Breakdown - Inpatient medical services generated revenue of RMB 522.8 million, down 4.5% from RMB 547.4 million in the previous year[9] - Outpatient medical services revenue increased to RMB 319.3 million, up 2.8% from RMB 312.4 million year-on-year[9] - Revenue from blood dialysis services was RMB 37.1 million, with no prior year comparison available[9] - Revenue from elderly medical services increased to RMB 7.0 million, up 18.6% from RMB 5.9 million in the previous year[9] - The hospital services segment generated revenue of RMB 880.8 million, down 4.4% from RMB 920.9 million in the same period last year[45] - The rehabilitation and related medical services segment recorded revenue of RMB 59.7 million, a decrease of 1.7% compared to RMB 60.7 million in the same period last year[46] - Revenue from special services totaled RMB 79.5 million, representing a decrease of 13.2% compared to RMB 91.6 million in the previous year[55] - Revenue from VIP medical services decreased by 12.4% to RMB 53.5 million, down from RMB 61.0 million in the same period last year[56] Assets and Liabilities - Non-current assets totaled RMB 1,691.9 million as of June 30, 2024, up from RMB 1,529.5 million at the end of 2023[3] - Current assets decreased to RMB 960.8 million from RMB 1,095.5 million at the end of 2023[3] - Total liabilities increased slightly to RMB 772.7 million from RMB 766.7 million at the end of 2023[3] - Accounts receivable increased to RMB 327,597 thousand as of June 30, 2024, from RMB 269,745 thousand as of December 31, 2023[26] - The total amount of accounts receivable and other receivables reached RMB 354,956 thousand as of June 30, 2024, compared to RMB 302,278 thousand as of December 31, 2023[26] - As of June 30, 2024, accounts payable amounted to RMB 366,803,000, an increase of 15.6% from RMB 317,263,000 as of December 31, 2023[32] - The total amount of accounts payable and other payables, including provisions, reached RMB 689,425,000, up from RMB 660,322,000, reflecting a growth of 4.5%[32] Operational Highlights - The company operates four main business segments: hospital services, rehabilitation and other medical services, blood dialysis services, and elderly medical services[10] - The company operates three self-owned hospitals, including Dongguan Kanghua Hospital, recognized as one of the top private general hospitals in China[41] - The company has a total of 13 rehabilitation centers and a vocational training school, focusing on providing special care services for patients with permanent or long-term disabilities[42] - The company is expanding its "large-scale healthcare" business model in response to the aging population in China[43] - The company aims to expand its quality rehabilitation services beyond Guangdong Province, enhancing its service offerings in other regions of China[42] Investments and Acquisitions - The company completed the acquisition of 70% of Kanghua Hemodialysis Group for RMB 7,700,000, with goodwill recognized amounting to RMB 114,224,000[38] - The company acquired properties, plants, and equipment totaling RMB 24,904,000 and incurred construction costs of RMB 29,188,000 to enhance hospital service capabilities and develop new medical facilities[23] - The company has established a fund for investment in healthcare services, biotechnology, and medical devices, with an initial capital of RMB 22,000,000 as of June 30, 2024[31] Cash Flow and Financing - The net cash flow from operating activities for the reporting period was RMB 48.8 million, a decrease of 22.0% compared to RMB 62.6 million for the same period last year, primarily due to worsened EBITDA and losses[98] - The net cash flow used in investing activities was RMB 49.8 million, with significant factors including a net loss of RMB 15.0 million from the acquisition of financial assets and a cash flow of RMB 6.1 million from the acquisition of Kanghua Hemodialysis Group[99] - The net cash flow used in financing activities amounted to RMB 198.1 million, mainly due to new bank loans of RMB 21.8 million and repayment of bank loans totaling RMB 283.4 million[100] - The company has implemented a cash management policy to invest in low-risk financial products to achieve higher interest income without affecting business operations or capital expenditures[102] Corporate Governance and Compliance - The company has adhered to all applicable corporate governance codes during the reporting period[120] - The audit committee has reviewed the interim results for the six months ending June 30, 2024, confirming compliance with applicable accounting standards[121] - The board of directors includes a mix of executive and independent non-executive directors, ensuring diverse oversight[123] - The company expresses gratitude to its management team and employees for their contributions during the reporting period[122]

Financial Performance - Profit for the year increased to RMB 91.0 million in 2023, up from RMB 26.3 million in 2022, representing a growth of 245%[1] - EBITDA for the year reached RMB 308.6 million, compared to RMB 233.8 million in 2022, reflecting a year-over-year increase of 32%[1] - The Group's consolidated profit for the Reporting Period amounted to RMB 91.0 million, representing a year-on-year increase of 246.0% from RMB 26.3 million in 2022[139] - Adjusted EBITDA recorded a year-on-year increase of 35.0% to RMB 291.3 million, up from RMB 215.8 million in 2022[151] - The overall operating margin increased from 14.2% in 2022 to 17.8% for the Reporting Period due to stringent cost control policies[133] Revenue Growth - In 2023, Guangdong Kanghua Healthcare Co., Ltd. reported a revenue of RMB 2,041,858,000, representing a year-on-year increase of 10.6%[102] - The hospital services segment recorded revenue of RMB 1,887.9 million, a year-on-year increase of 9.7%, achieving the highest revenue since 2019[121] - Revenue from cardiovascular related disciplines increased to RMB 271,010,000 in 2023, up from RMB 206,477,000 in 2022, representing a year-on-year growth of 31.2%[90] - Revenue from other clinical disciplines reached RMB 478,540,000 in 2023, compared to RMB 422,933,000 in 2022, marking a growth of 13.2%[90] - Revenue from rehabilitation and other related healthcare services reached RMB 141.2 million, marking a year-on-year increase of 26.4% from RMB 111.7 million in 2022[194] Asset Management - The Group's net assets position was RMB 1,497.5 million as of December 31, 2023, slightly down from RMB 1,514.5 million in 2022[14] - The Group recorded net current assets of RMB 328.8 million in 2023, an increase from RMB 289.6 million in 2022[12] - The Group's finance costs decreased to RMB 12.1 million in 2023 from RMB 15.0 million in 2022, showing improved cost management[1] - The Group's cash management policy includes purchasing investment products to achieve higher interest income without interfering with business operations[28] Investment and Expansion Plans - The group plans to allocate RMB 70.4 million for the expansion of current operations and upgrading hospital facilities by the end of December 31, 2024[22] - An investment of RMB 281.7 million is intended for expanding operating capacity and capabilities in multi-disciplinary specialized treatment and diagnosis by the end of December 31, 2024[22] - The group aims to expand healthcare operations in China through selective mergers and acquisitions, with an allocation of RMB 273.9 million for this purpose by the end of December 31, 2024[22] - The Group's investment strategy includes exploring new potential investment projects and capital market investments to diversify business risk and maximize shareholder value[44] Operational Efficiency - The net cash generated from operating activities was RMB 204.2 million in 2023, a year-on-year decrease of 7.8% compared to RMB 221.4 million in 2022, primarily due to changes in working capital[32] - The Group's total income tax paid during the Reporting Period was RMB 52.1 million, slightly up from RMB 51.6 million in 2022[51] - The net cash flows used in financing activities amounted to RMB 55.6 million, a decrease from RMB 110.9 million in 2022, primarily due to new bank loans raised of RMB 68.2 million[54] Patient Services and Experience - Patient visits increased significantly, with outpatient visits reaching 1,530,200 in 2023, compared to 1,456,100 in 2022[104] - The Group's hospitals have committed increased efforts in marketing and promotion, leading to an increase in inpatient visits following the relaxation of pandemic-related measures[116] - Renkang Hospital is focused on optimizing medical services and enhancing patient experience, with plans to continue improving its medical capabilities and quality standards in 2024[169] Market Trends and Government Support - The healthcare market in China is expected to grow steadily, driven by rising incomes and an aging population, as outlined in the "Healthy China 2030" initiative[108] - The government continues to support private healthcare participation, creating opportunities for innovative service providers to address public healthcare gaps[111] - Regulatory bodies have introduced policies to increase supply and strengthen the public healthcare system to meet basic medical needs[128]

Financial Performance - Revenue for the reporting period increased by 10.6% to RMB 2,041.9 million (2022: RMB 1,845.6 million) [5] - Profit for the reporting period increased by 246.0% to RMB 91.0 million (2022: RMB 26.3 million) [5] - Profit attributable to owners of the company increased by 102.8% to RMB 121.1 million (2022: RMB 59.7 million) [5] - Adjusted EBITDA increased by 35.0% to RMB 291.3 million (2022: RMB 215.8 million) [5] - The company's revenue for 2023 reached RMB 2,041,858 thousand, a 10.6% increase from RMB 1,845,633 thousand in 2022 [21] - Gross profit for the year was RMB 364,370 thousand, up from RMB 261,350 thousand, reflecting a significant improvement in profitability [21] - The net profit for the year amounted to RMB 91,023 thousand, compared to RMB 26,284 thousand in the previous year, indicating a substantial growth of 246.5% [21] - Basic and diluted earnings per share were both RMB 36.2, an increase from RMB 17.9 in 2022 [21] - The group reported a consolidated profit for the period of RMB 91.0 million, a significant increase of 246.0% compared to RMB 26.3 million in 2022 [92] - Adjusted EBITDA increased by 35.0% to RMB 291.3 million, up from RMB 215.8 million in 2022, indicating strong core business performance [93] Assets and Liabilities - Non-current assets totalled RMB 1,529.5 million, a decrease from RMB 1,594.8 million in the previous year [7] - Current assets totalled RMB 1,095.5 million, down from RMB 1,124.5 million in the previous year [7] - Current liabilities decreased to RMB 766.7 million from RMB 834.9 million in the previous year [7] - Net current assets increased to RMB 328.8 million from RMB 289.6 million in the previous year [7] - Non-current liabilities totaled RMB 360,760 thousand, slightly down from RMB 369,821 thousand in the previous year [22] - The company's net asset value was RMB 1,497,527 thousand, a decrease from RMB 1,514,528 thousand in 2022 [22] Dividends - The board does not recommend the payment of a final dividend for the reporting period [5] - The company has not declared or proposed any dividends for the year, consistent with the previous year [38] Operational Efficiency - The company continues to focus on expanding its healthcare services and enhancing operational efficiency [6] - The group has engaged Silver Mountain Capital for a 20-year management arrangement to enhance operational efficiency at Kangxin Hospital [199] Employee and Costs - Total employee costs increased to RMB 635,071,000 in 2023, up from RMB 624,332,000 in 2022, reflecting a growth of approximately 1.2% [61] - The company reported a decrease in administrative expenses to RMB 242,391 thousand from RMB 228,323 thousand [21] - Financing costs decreased to RMB 12,055 thousand from RMB 15,043 thousand, indicating improved cost management [21] - Administrative expenses increased by approximately 6.2% year-on-year to RMB 242.4 million, primarily due to a 47.2% rise in management and consulting fees to RMB 23.5 million [157] Service Segments - The group primarily operates in China, providing hospital services, rehabilitation, and elderly care services [23] - The group’s total revenue and performance analysis is segmented by the types of services provided, focusing on hospital services, rehabilitation, and elderly care [53] - The company operates three main business segments: hospital services, rehabilitation and other medical services, and elderly medical services, focusing on providing quality healthcare [85] - The elderly medical services segment includes a comprehensive elderly care center with 108 beds, aimed at addressing the growing demand for elderly care services in Dongguan, China [87] - The rehabilitation and related medical services segment recorded annual revenue of RMB 141.2 million, a year-on-year increase of 26.4% from RMB 111.7 million in 2022 [91] - Revenue from inpatient medical services reached RMB 1,079.6 million, a year-on-year increase of 16.5%, accounting for 52.9% of total revenue [179] - The hospital services segment recorded revenue of RMB 1,887.9 million, a 9.7% increase from RMB 1,721.5 million in 2022, marking the highest revenue since 2019 [117] Patient Statistics - Total inpatient visits increased to 74,337, a year-on-year growth of 17.9% from 63,053 in 2022 [94] - The overall bed occupancy rate rose to 71.9%, up from 62.2% in 2022, due to the increase in inpatient numbers [94] - The total number of outpatient visits increased to 1,530,169, reflecting a year-on-year increase of 5.1% from 1,456,072 in 2022 [94] - The total number of surgical procedures performed increased to 48,105, representing a year-on-year growth of 13.6% from 42,346 in 2022 [94] Strategic Developments - The company is focused on developing its large-scale healthcare concept business in response to the aging population in China, which presents significant growth potential in the healthcare and elderly care sectors [87] - The company is exploring reforms in medical insurance payment methods to improve efficiency and address low reimbursement rates [127] - The group is positioned to benefit from the increasing demand for high-quality medical services due to an aging population and expanding middle class in China [138] - The group is developing a new elderly healthcare complex in Dongguan, which began construction in 2021 to meet the growing medical service needs in Guangdong Province [141] Acquisitions - The group acquired 70% of Dongguan Kanghua Hemodialysis Medical Investment Management Co., Ltd. for RMB 7.7 million, with the acquisition completed on January 9, 2024 [111] - The acquisition of 40% equity in Kangxin Hospital for RMB 108.0 million, completed in November 2023, making it a wholly-owned subsidiary [145] - The acquisition of the Kanghua Hemodialysis Group is expected to create synergies and enhance profitability and efficiency for both entities [144] Future Outlook - The company aims to optimize medical services and enhance patient safety and quality management in 2024 [125] - The company plans to focus on high-quality, high-tech VIP medical services as a growth driver in 2024 [170] - The group plans to enhance service quality and aims for a five-star elderly care institution certification in 2024 [135] - The company plans to complete the first phase of the Kanghua Qingxi Hospital project by April 2024, with operations expected to commence by March 2025 [172]

Financial Performance - The Group's consolidated revenue for the reporting period was RMB987.5 million, a year-on-year increase of 14.5% from RMB862.7 million for the six months ended June 30, 2022[10]. - The Group recorded a consolidated profit of RMB29.4 million for the reporting period, compared to a loss of RMB22.3 million in the same period last year[10]. - Adjusted EBITDA increased by 98.1% to RMB129.2 million, up from RMB65.2 million for the six months ended June 30, 2022, indicating solid core operations[13]. - The overall operating profit margin improved from 10.3% to 17.3% during the reporting period[37]. - Total gross profit increased to RMB171.0 million, representing a 93.2% increase from RMB88.5 million in the previous period, with a gross profit margin rising to 17.3%[114]. Revenue Breakdown - Revenue from rehabilitation and other healthcare services increased by 22.9% to RMB60.7 million, driven by higher patient intake and expansion of rehabilitation centers[11]. - Kanghua Hospital's revenue reached RMB765.0 million, representing a 17.1% increase from RMB653.2 million in the same period last year, primarily due to increased patient visits[15]. - Revenue from VIP healthcare services grew by 21.3% to RMB61.0 million, compared to RMB50.3 million for the six months ended June 30, 2022, reflecting recovery in demand[24]. - Revenue from special services, targeting high-income patients, reached RMB916 million, reflecting a 6.8% increase from RMB857 million in the previous year[45]. - Inpatient healthcare services generated revenue of RMB547.4 million, a 23.2% increase compared to RMB444.3 million for the same period in 2022, accounting for 55.4% of total revenue[84]. Patient Statistics - The number of surgeries performed increased to 19,714, up from 17,826 in the same period last year, with complex surgeries rising by 10.6% and 78.9% respectively[21]. - Inpatient visits increased by 17.6% to 35,012, while outpatient visits rose by 3.8% to 718,641 during the first half of 2023[39]. - The total number of outpatient visits increased to 718,641, marking a 3.8% rise from 692,141[194]. - The total number of surgical operations increased to 19,714, representing a 10.6% increase from 17,826[194]. Cost and Expenses - The Group's overall cost of revenue for hospital services rose to RMB761.2 million, a 4.9% increase from RMB725.6 million in the same period of 2022[62]. - The cost of revenue for the rehabilitation and other healthcare services segment increased to RMB51.2 million, a 15.6% rise from RMB44.3 million in the previous year[61]. - Administrative expenses amounted to RMB125.6 million, representing a period-on-period increase of approximately 8.9% from RMB115.3 million in the same period of 2022[65]. - Finance costs for the Reporting Period decreased by 25.6% to RMB6.4 million, down from RMB8.6 million in the previous year[66]. Debt and Financing - As of June 30, 2023, the Group had bank loan facilities totaling RMB620.0 million for the Phase II medical facility and RMB330.0 million for the Kanghua Qingxi Healthcare Complex, with RMB376.1 million drawn down[1]. - As of June 30, 2023, the Group's debt-to-equity ratio was 19.2%, up from 18.5% on December 31, 2022[54]. - A financial leasing agreement of RMB200.0 million was established, with RMB66.0 million drawn down as of 30 June 2023, at an effective interest rate of 6.74%[79]. Operational Efficiency - The Group is focusing on optimizing medical services and improving operational efficiency for the remainder of 2023[50]. - The establishment of a new elderly healthcare complex in Dongguan is aimed at enhancing high-end comprehensive medical care services to meet growing demand in Guangdong Province[52]. - The Group's management emphasizes stringent cost control, maintaining stable administrative expenses despite increases in certain areas[65]. Staff and Training - As of June 30, 2023, the Group had a total of 3,956 full-time staff, an increase from 3,848 as of December 31, 2022[100]. - The Group provides structured training and education programs to enhance staff competencies and ensure high-quality service delivery[101]. - Regular internal and external mandatory training is organized for medical staff to keep them updated on the latest healthcare developments[101]. Corporate Governance - The Company does not have any other disclosure obligations under Rules 13.20, 13.21, and 13.22 of the Hong Kong Listing Rules[107]. - The Company has adopted the Model Code for Directors' and Supervisors' securities transactions, and all have complied with the required standards during the six months ended June 30, 2023[107]. - The Board expresses appreciation to the management team and staff for their contributions and to shareholders and business partners for their support[107]. Cash Flow and Investments - Net cash flow from operating activities increased by 24.1% to RMB62.6 million for the six months ended June 30, 2023, compared to RMB50.4 million for the same period in 2022[180]. - The net cash flow from investing activities was RMB18.4 million during the reporting period, a significant improvement from a net cash outflow of RMB149.4 million for the six months ended June 30, 2022[182]. - The Group's investments classified as financial assets at FVTPL totaled RMB386.0 million as of June 30, 2023, down from RMB572.4 million as of December 31, 2022[177]. Future Outlook - The Group's management is optimistic about future performance, supported by stable cash flows and strategic investments in healthcare infrastructure[151]. - The Group plans to utilize RMB273.9 million for expansion through selective mergers and acquisitions, with RMB175.0 million already utilized by June 30, 2023[193].

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，概不對因本公告 全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責 任。 廣 東 康 華 醫 療 股 份 有 限 公 司 GUANGDONG KANGHUA HEALTHCARE CO., LTD.* （於中華人民共和國註冊成立的股份有限公司） （股份代號：3689） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 之 中 期 業 績 公 告 財務摘要 • 報告期內收益增加14.5%至人民幣987.5百萬元（截至二零二二年六月三十 日止六個月：人民幣862.7百萬元）。 • 報告期內溢利為人民幣29.4百萬元（截至二零二二年六月三十日止六個 月：虧損人民幣22.3百萬元）。 • 本公司擁有人應佔期內溢利為人民幣50.7百萬元（截至二零二二年六月 三十日止六個月：虧損人民幣4.8百萬元）。 ...

Financial Performance - In 2022, the Group's consolidated revenue was RMB1,845.6 million, a year-on-year decrease of 5.5% from RMB1,953.9 million in 2021, primarily due to a 6.4% drop in revenue from hospital services[9]. - The Group's consolidated profit for the Reporting Period was RMB27.7 million, a year-on-year decrease of 58.6% from RMB66.9 million in 2021, primarily due to lower revenue and profit from Kanghua Hospital and Renkang Hospital[12]. - The overall operating margin decreased from 18.1% to 14.2% during the Reporting Period[12]. - Adjusted EBITDA decreased by 30.0% to RMB215.8 million, down from RMB308.1 million in 2021, indicating that the Group's core operations remained profitable[19]. - The Group's total revenue for the year was RMB 1,845.6 million, a decrease of 6.4% compared to RMB 1,953.9 million in the previous year, accounting for 93.3% of total revenue[85]. - Revenue from inpatient healthcare services decreased by 14.1% to RMB 927.1 million, representing 50.2% of total revenue, down from 55.3% in the previous year[86]. - Revenue from outpatient healthcare services increased by 3.9% to RMB 640.7 million, accounting for 34.7% of total revenue, up from 31.6% in the previous year[86]. - Revenue from physical examination services rose by 7.4% to RMB 153.7 million, representing 8.3% of total revenue, compared to 7.3% in the previous year[86]. - The cost of revenue for rehabilitation and other healthcare services increased by 9.1% to RMB 93.0 million, in line with the revenue growth for the year[91]. - The overall average patient spending from inpatient healthcare services decreased, contributing to the decline in gross profit[4]. Revenue Segmentation - Revenue from rehabilitation and other related healthcare services increased by 10.1% to RMB111.7 million, up from RMB101.5 million in 2021[11]. - Revenue from rehabilitation hospital operations rose by 30.0%, driven by higher patient intake and expansion of the rehabilitation centre network[11]. - The hospital services segment recorded revenue of RMB1,721.5 million, a year-on-year decrease of 6.4%, with Kanghua Hospital and Renkang Hospital experiencing revenue declines of 8.0% and 4.2%, respectively[16]. - Kangxin Hospital, however, saw a significant revenue increase of 41.8% compared to 2021[16]. - The elderly healthcare services segment achieved revenue of RMB12.5 million, a year-on-year growth of 1.8% from RMB12.2 million in 2021, attributed to the maturation of operations since its opening in 2019[13]. - Revenue from VIP healthcare services decreased by 13.5% to RMB86.9 million compared to RMB100.5 million in 2021 due to the impact of the pandemic[41]. - Revenue from rehabilitation hospital and other healthcare services increased by 30.0% to RMB53.1 million in 2022, up from RMB40.8 million in 2021, driven by growth in rehabilitation patient visits[43]. - Revenue from rehabilitation centers and other services slightly decreased by 3.4% to RMB58.6 million in 2022, down from RMB60.7 million in 2021[43]. Strategic Developments - The Group is developing the Kanghua Qingxi Healthcare Complex, with a total construction area of over 130,000 square meters, featuring 500 inpatient beds and around 800 nursing and rehabilitation beds[9]. - The first phase of the Kanghua Qingxi Healthcare Complex is expected to commence operations by March 2025[9]. - The Group's strategic partnership with Yingshan Capital aims to introduce international management experience and expertise to improve hospital operations[7]. - The Group plans to enhance smart hospital construction and expand internet healthcare services to improve patient consultation and treatment convenience[14]. - The Group aims to optimize healthcare services and improve operational efficiency in 2023, focusing on core business and stakeholder relationships[14]. - The Group's rehabilitation and other healthcare services segments recorded a revenue increase of 10.1%[16]. - Kanghua Hospital aims to pass the Class III Grade A re-evaluation by the end of 2023, focusing on seven aspects including hospital management and medical safety[22]. - Renkang Hospital is working towards obtaining a secondary qualification by the end of 2023, enhancing medical quality control and service levels[28]. Market Trends and Future Outlook - The overall growth of the healthcare industry for the elderly is anticipated to be a major trend in the future, with the Group actively preparing for relevant evaluations and qualifications[9]. - The surge in COVID-19 cases at the end of 2022 presented both threats and opportunities, with the government increasing medical clinics and promoting online medical services[16]. - The Chinese healthcare market is transitioning to a "post-pandemic" era in 2023, presenting opportunities for restructuring and upgrading in the pharmaceutical and medical sectors[53]. - By the end of 2024, all regions in China are expected to implement DRG/DIP payment method reform, which aims to alleviate pressure on the healthcare security fund[56]. - The demand for consumption health is driven by an aging population and increased health awareness post-COVID-19, with sub-sectors like ophthalmology and medical aesthetics showing significant growth potential[60]. - The healthcare industry is undergoing reforms aimed at improving resource allocation and efficiency, including medical insurance reforms and the promotion of private healthcare services[74]. Operational Efficiency and Cost Management - The Group plans to enhance smart hospital construction and expand internet healthcare services to improve patient consultation and treatment convenience[14]. - The average bed occupancy rate at Renkang Elderly Care Centre was 86.1% in 2022, with revenue from elderly medical services increasing by 1.8% to RMB12.5 million[50]. - Staff-related costs increased by 9.8% compared to 2021, reflecting rising salary levels and competition for medical professionals[3]. - Administrative expenses increased to RMB 228.3 million, a 1.4% rise from RMB 225.2 million in 2021, mainly due to increased staff costs[102]. - The overall repair and maintenance expenditure significantly decreased to RMB 16.2 million from RMB 27.7 million in 2021[102]. - The Group's management closely monitors the credit quality of accounts receivable, with no overdue or impaired debts reported[139]. Investment and Financial Position - The Group's investments classified as financial assets at FVTPL totaled RMB572.4 million as of December 31, 2022, down from RMB603.3 million in 2021[132]. - The Group's fund investment increased to RMB18.0 million in 2022 from RMB10.0 million in 2021, indicating growth in equity investments in unlisted companies[132]. - The Group expects to maintain adequate liquidity and financial resources to meet working capital requirements for at least the next twelve months[132]. - The Group's capital expenditure during the reporting period was RMB 168.0 million, slightly down from RMB 169.3 million in 2021[180]. - The total unutilized net proceeds from the IPO as of December 31, 2022, amounted to RMB 410.8 million, with part used for purchasing financial products to achieve higher interest income[175]. - The Group's investment strategy includes low-risk structured deposit products and portfolio investment funds to maximize returns on idle cash without affecting operations[136]. - The Group's capital expenditures are primarily financed through cash flows generated from operating activities and bank loans[180]. - The company secured a total of RMB620.0 million in new bank loans for the development of Kangxin Hospital's Phase II medical facilities, with RMB345.4 million drawn down by December 31, 2022[188]. Compliance and Sustainability - The company is committed to environmental protection and sustainable development, adhering to national and local environmental laws and regulations in the PRC[200]. - The company has engaged qualified third parties for the proper disposal of medical wastes in compliance with applicable laws and regulations[200].