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].

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 二 年 十 二 月 三 十 一 日 止 年 度 之 全 年 業 績 公 告 財務摘要 • 本年度收益減少5.5%至人民幣1,845.6百萬元（二零二一年：人民幣1,953.9 百萬元）。 • 本年度溢利減少58.6%至人民幣27.7百萬元（二零二一年：人民幣66.9百萬 元）。 • 本公司擁有人應佔本年度溢利減少35.3%至人民幣61.0百萬元（二零二一 年：人民幣94.3百萬元）。 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 862,722,000, a decrease of 1.0% compared to RMB 871,485,000 in 2021[38]. - Gross profit decreased by 31.8% to RMB 88,523,000, resulting in a gross profit margin of 10.3%, down from 14.9% in the previous year[38]. - The company reported a loss before tax of RMB (8,872,000), compared to a profit of RMB 35,843,000 in the same period last year[38]. - The loss attributable to owners of the company for the period was RMB (21,602,000), a significant decline from a profit of RMB 14,799,000 in 2021[38]. - Adjusted EBITDA for the period was RMB 65,245,000, reflecting a decrease of 41.3% from RMB 111,097,000 in the prior year[38]. - Basic loss per share was RMB (1.2) cents, compared to earnings of RMB 9.2 cents per share in the previous year[38]. - The Group's consolidated loss for the Reporting Period amounted to RMB 21.6 million, compared to a profit of RMB 14.8 million in the same period last year, primarily due to decreased revenue and profit at Kanghua Hospital[58]. - The Group's total gross profit was RMB 88.5 million, a decrease of 31.8% compared to RMB 129.8 million for the six months ended June 30, 2021, with a gross profit margin dropping to 10.3% from 14.9%[165]. - The loss attributable to shareholders was RMB 4.2 million, compared to a profit of RMB 30.9 million in the same period of 2021, indicating a challenging financial environment[182]. Revenue Breakdown - Revenue from the hospital services segment decreased by 1.8%, while revenue from rehabilitation and other healthcare services increased by 11.7% and elderly healthcare services increased by 27.0%[46]. - Revenue from the rehabilitation and other related healthcare services segment was RMB 49.4 million, up from RMB 44.2 million in the same period last year, marking an increase of 11.7%[52]. - Revenue from the elderly healthcare services segment increased by 27.0%, attributed to the gradual maturity of the elderly care center operation since its opening in 2019[53]. - Revenue from inpatient healthcare services decreased to RMB 444.3 million, down 8.8% year-on-year, accounting for 51.5% of total revenue[158]. - Revenue from outpatient healthcare services increased to RMB 315.6 million, up 12.1% year-on-year, accounting for 36.6% of total revenue[158]. - Revenue from rehabilitation and other healthcare services rose to RMB 49.4 million, an increase of 11.7% year-on-year, representing 5.7% of total revenue[158]. - Revenue from elderly healthcare services increased to RMB 6.6 million, up 27.0% year-on-year, accounting for 0.8% of total revenue[158]. Operational Challenges - Patient visits to medical institutions decreased due to COVID-19, impacting demand for non-critical healthcare services[45]. - The overall business operations experienced interruptions due to government controls on healthcare services during the pandemic[45]. - The overall decrease in surgeries and patient visits was primarily attributed to the temporary closure of medical facilities at Kanghua Hospital during the reporting period[109]. - Kanghua Hospital faced a temporary closure of its outpatient department due to a COVID-19 case, adversely impacting revenue during the reporting period[67]. Strategic Focus - The company is focusing on expanding its service offerings in various medical disciplines, including orthopaedics and nephrology[15]. - Future strategies may include market expansion and potential mergers or acquisitions to enhance service capabilities[15]. - The company is investing in new technologies and product development to improve operational efficiency and patient care[15]. - Management remains cautious about market conditions and is adjusting its performance guidance accordingly for the upcoming periods[15]. Cost Management - Direct staff costs increased by 16.3% compared to the prior period, reflecting rising salary levels and competition for medical professionals[160]. - Administrative expenses increased by approximately 11.5% to RMB 115.3 million from RMB 103.4 million, primarily due to higher administrative staff costs and general expenditures[172]. - Finance costs decreased by 16.3% to RMB 8.6 million from RMB 10.2 million, with bank loan interest rising to RMB 9.6 million from RMB 8.7 million[173]. Investment and Assets - The Group's capital expenditure on property, plant, and equipment was RMB 48.9 million, an increase from RMB 32.7 million in the same period of 2021, aimed at upgrading hospital service capacity[180]. - The Group's investments classified as financial assets at fair value through profit or loss totaled RMB 701.8 million as of June 30, 2022, up from RMB 603.3 million as of December 31, 2021[195]. - The group established a partnership for a fund focused on medical services, biotechnology, medical devices, and medical informatics, with an initial term of seven years[197]. Digital Transformation - The COVID-19 pandemic has accelerated the digital transformation of the healthcare industry, increasing patient acceptance of digital healthcare services[140]. - The Chinese government is promoting digital development in the healthcare industry, including internet hospital standards and online payment for social medical insurance[139].

Financial Performance - Revenue for the year ended December 31, 2021, was RMB 1,953,944,000, representing a year-on-year increase of 12.0% from RMB 1,745,023,000 in 2020[7] - Gross profit for 2021 was RMB 352,748,000, with a gross profit margin of 18.1%, up from 15.1% in 2020, reflecting a 34.0% increase in gross profit[7] - Profit for the year attributable to owners of the Company was RMB 66,925,000, compared to a loss of RMB 50,056,000 in 2020, marking a significant turnaround[7] - Adjusted EBITDA for 2021 was RMB 308,113,000, a 56.8% increase from RMB 196,493,000 in 2020[7] - Total revenue for the Group in 2021 was RMB 1,953.9 million, representing a year-on-year increase of 12.0%[53] - The Group's consolidated profit for the year ended 31 December 2021 amounted to RMB 66.9 million, a turnaround from a loss of RMB 50.1 million in 2020[52] - Adjusted EBITDA increased by 56.8% to RMB 308.1 million, indicating solid profitability in core operations[56] - The overall operating margin improved from 15.1% in 2020 to 18.1% in the reporting period[54] Patient Visits and Services - The number of inpatient visits in 2021 was 1,487,700, an increase from 1,358,500 in 2020[12] - Outpatient visits for 2021 totaled 67,500, compared to 56,600 in 2020[12] - Total inpatient visits increased to 67,546, a year-on-year increase of 19.4%, while outpatient visits rose to 1,487,674, up 9.5% year-on-year[49] - Revenue from hospital services amounted to RMB1,839.5 million, reflecting a year-on-year increase of 13.5% due to an increase in patient visits[49] - Revenue from elderly healthcare services at Renkang Elderly Care Centre amounted to RMB12.2 million, representing a year-on-year increase of 84.8%[51] - The increase in elderly healthcare revenue was driven by maturing operations and rising demand for services, leading to higher patient intake[51] Asset and Liability Management - Total assets increased by 10.2% to RMB 2,704,602,000, while total liabilities rose by 17.6% to RMB 1,230,175,000[7] - The Company reported a net gearing ratio of 21.1%, up from 18.3% in 2020, indicating a slight increase in leverage[7] Strategic Initiatives and Future Plans - The Company plans to continue expanding its market presence and investing in new technologies to enhance service delivery and patient care[7] - Future plans include implementing a high degree of information-based integration in various management areas, enhancing decision-making capabilities[36] - The strategic theme for the Group is "Being Open to New Opportunities and Creating a New Pathway," aimed at improving medical care quality and competitiveness[21] - The Group plans to optimize medical services and improve operational efficiency in 2022[64] - The Group will continue to explore merger and acquisition opportunities in the domestic market[64] COVID-19 Response and Impact - The Group administered over 850,000 doses of COVID-19 vaccine, receiving high praise from the government and society for its efforts[29] - The impact of the COVID-19 pandemic is expected to persist, with ongoing operational challenges for healthcare service providers[58] - The Group aims to accelerate the online transformation of the healthcare industry and promote breakthroughs in the consumer medical segment[64] - The COVID-19 pandemic has led to an upsurge in online medical treatments, providing patients with more options[174] Hospital Recognition and Achievements - Kanghua Hospital was awarded as a key clinical specialty in Dongguan in 2021 and recognized as one of the top 100 private hospitals in China[30] - The hospital's teaching ability and academic research level significantly improved, with 19 projects approved by the Dongguan social science and technology development program in 2021[30] - Kanghua Hospital was awarded multiple recognitions, including being listed among the top 100 private hospitals and the top 300 prefecture-level city hospitals in China[94] Rehabilitation and Specialized Services - Revenue from rehabilitation and other healthcare services was RMB101.5 million, a year-on-year increase of 1.1%, with rehabilitation hospital services declining by 36.4% to RMB40.8 million[50] - Revenue from rehabilitation centres and other healthcare services, particularly children rehabilitation operations, increased by 67.7% to RMB60.7 million[50] - The hospital aims to enhance the functions of its rehabilitation and hypertension centers to manage chronic diseases effectively[122] Digital Transformation and Healthcare Innovation - The hospital's digitalization efforts included integrating online appointment registration, consultations, and payment systems to create a seamless medical service experience[99] - The Group has focused on upgrading hospitals and elderly healthcare facilities as part of its strategy moving forward[76] - The Group is focusing on developing internal medical businesses such as atrial fibrillation and supraventricular tachycardia to enhance technical capabilities[122] Market Trends and Industry Outlook - The healthcare industry is expected to experience transitional pains but continues to present development opportunities due to aging population and policy support[165] - The consumer healthcare market is valued at RMB 13 trillion, providing numerous opportunities for business development[184] - The demand for consumer healthcare is expected to grow as proactive health awareness increases, transitioning from a hospital-centered to a patient-centered approach in 2022[184]

Financial Performance - Revenue for the six months ended June 30, 2021, increased by 14.5% to RMB 871,485,000 compared to RMB 760,987,000 in 2020[7] - Gross profit rose by 77.4% to RMB 129,845,000, with a gross profit margin of 14.9%, up from 9.6% in 2020[7] - Profit before taxation improved by 128.8% to RMB 35,843,000, compared to a loss of RMB 124,446,000 in the previous year[7] - The company reported a profit for the period of RMB 14,799,000, a significant turnaround from a loss of RMB 126,219,000 in 2020, representing a 111.7% increase[7] - Adjusted EBITDA surged by 283.9% to RMB 111,097,000, compared to RMB 28,936,000 in the same period last year[7] - Basic earnings per share increased by 128.9% to 9.2 RMB cents, recovering from a loss of 31.8 RMB cents in 2020[7] Market Recovery - The healthcare market in the PRC, particularly in Guangdong Province, showed signs of stabilization and recovery due to effective pandemic control measures and government support[17] - The number of outpatient visits increased to 698,500 in 2021 from 566,600 in 2020, reflecting a recovery trend[12] - The company is focusing on expanding its healthcare services and enhancing operational efficiency in response to market recovery[17] - Future strategies include continued investment in healthcare infrastructure and potential new service offerings to meet growing demand[17] Hospital Operations - Revenue from Kanghua Hospital and Renkang Hospital increased by 9.7% and 45.8%, respectively, while Kangxin Hospital experienced a mild decline of 1.7%[20] - Total inpatient visits increased to 31,308, representing a 20.3% increase from 26,030 in the first half of 2020[27] - Total outpatient visits rose to 698,486, a 23.3% increase from 566,568 in the first half of 2020[27] - The total number of surgical operations increased to 19,416, representing an 8.0% increase from 17,991 in the same period of 2020[27] - Revenue from the rehabilitation and related healthcare services segment increased by 40.7% to RMB 44.2 million, compared to RMB 31.5 million in the first half of 2020[23] Revenue Breakdown - Revenue from hospital services increased to RMB 821.3 million for the six months ended June 30, 2021, representing a year-on-year increase of 13.8% and accounting for 94.2% of total revenue[102] - Revenue from inpatient healthcare services was RMB 487.4 million, a 4.2% increase from RMB 468.0 million, representing 55.9% of total revenue[105] - Revenue from outpatient healthcare services rose to RMB 281.6 million, a 24.4% increase from RMB 226.5 million, accounting for 32.3% of total revenue[105] - Revenue from physical examination services surged to RMB 52.3 million, a 92.6% increase from RMB 27.2 million, making up 6.0% of total revenue[105] Cost and Expenses - The Group's cost of revenue for the reporting period was RMB 741.6 million, leading to a gross profit of RMB 129.8 million[100] - Total staff-related costs increased by 3.7% compared to the previous year, reflecting higher salary levels and competitive compensation packages for healthcare professionals[120] - Administrative expenses for the first half of 2021 amounted to RMB 103.4 million, a decrease of approximately 16.1% compared to RMB 123.2 million for the same period in 2020[143] - Finance costs for the reporting period decreased by 9.6% to RMB 10.2 million, down from RMB 11.3 million in the first half of 2020[145] Cash Flow and Investments - The Group generated net cash from operating activities of RMB 155.8 million for the six months ended June 30, 2021, representing a 492.2% increase from RMB 26.3 million in the same period of 2020[174] - Net cash used in investing activities was RMB(163.6) million for the six months ended June 30, 2021, compared to RMB(129.2) million in the same period of 2020, reflecting a 26.7% increase[173] - The Group's investments classified as financial assets at FVTPL totaled RMB 570.5 million as of June 30, 2021, up from RMB 467.7 million as of December 31, 2020[167] Future Outlook - The Group anticipates significant business growth following the effective control of the COVID-19 pandemic[78] - The Group aims to expand healthcare operations in the PRC through selective mergers and acquisitions, with a budget of RMB 273.9 million, of which RMB 158.8 million has been utilized[188] - The Group plans to expand its current operations and upgrade hospital facilities, with an allocated budget of RMB 70.4 million, expected to be fully utilized by December 31, 2021[188] Challenges and Risks - The hospital faced challenges including high overhead costs and competition for healthcare professionals, impacting patient visits[43] - The Group's management estimates that the timeline for utilizing unutilized funds is subject to change based on operating and market conditions[189] - The Group closely monitors the credit quality of accounts receivables, considering debts that are neither past due nor impaired as having good credit quality[136]

Financial Performance - Revenue for the year ended December 31, 2020, was RMB 1,745,023,000, a decrease of 10.8% compared to RMB 1,955,525,000 in 2019[9] - Gross profit for 2020 was RMB 263,155,000, down 32.4% from RMB 389,419,000 in 2019, resulting in a gross profit margin of 15.1%, a decline of 4.83 percentage points[9] - The company reported a loss attributable to owners of RMB 25,372,000 for 2020, a significant decrease from a profit of RMB 74,264,000 in 2019, marking a 134.2% year-over-year change[9] - Adjusted EBITDA for 2020 was RMB 196,493,000, down 32.1% from RMB 289,180,000 in 2019[9] - The Group incurred a consolidated loss of RMB 50.1 million in 2020, compared to a profit of RMB 48.7 million in 2019[50] - Loss attributable to owners of the Company was RMB 25.4 million, down from a profit of RMB 74.3 million in 2019[50] - Adjusted EBITDA decreased by 32.1% to RMB 196.5 million, indicating that core operations remained profitable after adjustments[50] - The Group recognized an impairment loss on goodwill totaling RMB 77.4 million related to Kangxin Hospital and Anhui Hualin[50] Patient Visits and Services - The number of outpatient visits in 2020 was 1,358,500, a decrease from 1,753,300 in 2019[12] - The company experienced a decline in inpatient visits, with 2020 figures showing a drop compared to previous years[12] - Total inpatient visits decreased to 56,589, a year-on-year decline of 25.1%, while outpatient visits fell to 1,358,516, down 22.5%[48] - Total outpatient visits decreased to 1,358,516, representing a year-on-year decrease of 22.5%, with average spending per outpatient visit rising by 11.9% to RMB 389.3[71] - Total number of surgical operations decreased to 39,082, a year-on-year decrease of 15.1%[71] - The total number of surgeries performed in 2020 was 39,170, a decrease of 15.0% from 46,094 in 2019, with complex surgeries (level 3 or 4) decreasing by 12.1%[119] Impact of COVID-19 - The Group's operations were significantly impacted by the COVID-19 pandemic, leading to a decline in outpatient visits, inpatient visits, and surgical operations during the first half of 2020[27] - Starting from the second half of 2020, patient visit volumes quickly rebounded to pre-pandemic levels, with a notable increase in rehabilitation services[27] - The Group's operations rebounded in the second half of 2020, with patient visits gradually returning to pre-pandemic levels[61] - The pandemic caused a significant slowdown in business operations across all segments, but staff headcount remained unchanged during this period[191] Strategic Initiatives and Future Plans - The company plans to focus on expanding its healthcare services and enhancing operational efficiency in the coming years[9] - The Group plans to leverage opportunities in the Greater Bay Area to expand its healthcare network and business operations[21] - The establishment of internet hospitals is being expedited in response to the increasing demand for online medical consultations[32] - The Group aims to strengthen its healthcare services network in the Greater Bay Area and capitalize on opportunities from the "Healthy China 2030" vision[58] - The strategy includes enhancing operational efficiency and consolidating the leading position in China's private healthcare industry[58] - The Group plans to improve specialties based on existing advantages and develop both offline and online service capabilities[58] Revenue by Segment - Revenue from hospital services amounted to RMB1,620.5 million, reflecting a year-on-year decrease of 12.3% due to a decline in patient visits during the pandemic[48] - Revenue from rehabilitation and related healthcare services segment recorded revenue of RMB100.4 million, representing a year-on-year increase of 15.3%[48] - Revenue from elderly healthcare services surged to RMB 6.62 million in 2020, representing a significant year-on-year increase of 296.4% from RMB 1.67 million in 2019, driven by an increase in patient intake[156] - Revenue from pharmaceutical products and medical consumables decreased to RMB 17.54 million, down 5.6% year-on-year, accounting for 1.0% of total revenue[182] Operational Efficiency and Management - The Group is focusing on enhancing healthcare service competencies and restructuring management capabilities to improve operational efficiency[21] - The Group's management is optimistic that new internet services will mitigate the operational impacts of future pandemics[37] - The Group's strategic shift is towards delivering high-quality services while maintaining fast-paced expansion in the healthcare sector[167] - The Group has implemented numerous precautionary measures to ensure the health and safety of employees and stable operations during the pandemic[164] Recognition and Certifications - Kanghua Hospital achieved several recognitions, including a 5-star expertise rating and a 3A creditworthiness rating from the Chinese Non-governmental Medical Institute Association[38] - Kanghua Hospital's Department of Respiratory and Critical Medicine received PCCM certification as a class III hospital, aimed at improving national standards for respiratory disease treatment[79] - Renkang Hospital was recognized as a Class 2 hospital with excellent performance in the national PCCM standardization construction project[43] - Kangxin Hospital was recognized as a training project base for electrophysiology specialty by the National Health Commission, indicating its advanced capabilities in this area[108] Challenges and Risks - The company faced a significant revenue decline in the first half of 2020 due to pandemic-related restrictions, leading to an impairment loss on goodwill of RMB 27.5 million[141] - The management anticipates that rising operating costs will suppress revenue growth potential in the short to medium term[141] - The government has implemented centralized procurement policies aimed at lowering pharmaceutical purchase prices, which may influence the Group's procurement strategies[159] Other Income and Financial Metrics - Other income for the Group increased by approximately 39.2% year-on-year to RMB 41.2 million in 2020, up from RMB 29.6 million in 2019[198] - Investment income from financial assets at FVTPL rose by 13.3% to RMB 16.4 million in 2020, compared to RMB 14.5 million in 2019[198] - Government subsidies increased significantly to RMB 6.3 million in 2020, up from RMB 0.7 million in 2019, primarily due to pandemic-related support[198]

Financial Performance - Revenue for the six months ended June 30, 2020, decreased by 16.8% to RMB 760,987,000 compared to RMB 914,364,000 in 2019[7] - Gross profit fell by 60.6% to RMB 73,174,000, resulting in a gross profit margin of 9.6%, down from 20.3% in the previous year[7] - The company reported a loss before taxation of RMB 124,446,000, a decline of 246.9% compared to a profit of RMB 84,689,000 in 2019[7] - Loss for the period attributable to owners of the company was RMB 106,324,000, a decrease of 257.2% from a profit of RMB 67,637,000 in 2019[7] - Adjusted EBITDA decreased by 79.4% to RMB 28,096,000 from RMB 136,615,000 in the same period last year[7] - Basic loss per share was RMB (31.8) cents, a decline of 257.4% compared to earnings of RMB 20.2 cents per share in 2019[7] - The Group incurred a consolidated loss of RMB 126.2 million for the first half of 2020, compared to a profit of RMB 55.5 million in the same period of 2019[24] - The significant loss was attributed to a decline in patient visits across all service offerings during the pandemic[24] Patient Visits and Service Demand - Patient visits decreased significantly, with outpatient visits dropping to 566,600 from 861,900 in 2019[10] - Total inpatient visits declined to 26,030, representing a decrease of 27.7% from 36,025 in the same period last year[31] - Total outpatient visits decreased to 566,568, a decline of 34.3% from 861,872[31] - Inpatient visits at Kanghua Hospital decreased by 26.1% to 20,862, while Renkang Hospital saw a 34.8% decline to 4,500 visits[130] - Outpatient visits at Kanghua Hospital were 431,161, down 34.9% year-on-year, while inpatient visits were 20,862, a decrease of 26.1%[38] Revenue by Segment - Revenue from owned hospitals, including Kanghua Hospital, Renkang Hospital, and Kangxin Hospital, declined by 15.7%, 23.4%, and 24.2% respectively[21] - Revenue from neurology-related disciplines decreased to RMB 51,776,000 from RMB 59,624,000 in 2019, reflecting a decline in this segment[14] - Revenue from inpatient healthcare services amounted to RMB468.0 million, representing a period-on-period decrease of 12.7% and accounting for 61.5% of total revenue[118] - Revenue from outpatient healthcare services decreased to RMB226.5 million, a decline of 24.4%, accounting for 29.8% of total revenue[118] - Revenue from rehabilitation and other healthcare services amounted to RMB31.4 million, a decrease of 11.6%, accounting for 4.1% of total revenue[120] Operational Adjustments and Strategies - The company is focusing on expanding its healthcare services and enhancing operational efficiency to recover from the current financial downturn[7] - Future outlook includes potential investments in new technologies and market expansion strategies to improve service offerings and financial performance[7] - Kanghua Hospital is implementing "Internet + Medical Healthcare Services" to enhance online service capabilities and mitigate pandemic impacts[36] - The Group is actively expanding non-medical projects, including a pharmacy and a rehabilitation project for children with disabilities[86] - The establishment of internet hospitals is being expedited in response to the changing healthcare landscape due to the pandemic[97] Impairment and Goodwill - An impairment loss on goodwill totaling RMB 76.0 million was recognized for Kangxin Hospital and Anhui Hualin due to lower than anticipated future growth[24] - The Group recognized an impairment loss on goodwill of RMB 48.5 million for Kangxin Hospital during the interim period, following a loss of RMB 60.0 million in 2019[54] - The Group recognized goodwill of RMB56.6 million from the acquisition of Anhui Hualin Group and RMB125.4 million from Kangxin Hospital, with impairment losses of RMB27.5 million and RMB48.5 million respectively as of June 30, 2020[139] Cost Management and Financial Outlook - The management anticipates that rising operating costs will suppress revenue growth potential in the short- to medium-term[85] - Management anticipates a potential decrease in future cash flow forecasts due to rising fixed costs and slowing revenue growth[146] - The effective tax rate for the reporting period was -1.5%, a significant decrease from 33.7% in the previous year[150] - The Group's operations have resumed normalcy post-COVID-19, with stringent controls in place[147] Cash Flow and Financial Position - Net cash generated from operating activities was RMB26.3 million for the six months ended June 30, 2020, representing a 60.0% decrease from RMB65.7 million in the same period of 2019[172] - The net decrease in cash and cash equivalents was RMB(27.8) million, compared to an increase of RMB43.3 million in the previous year[171] - The Group's net current assets decreased to RMB253.7 million as of June 30, 2020, down from RMB378.2 million as of December 31, 2019[162] - The Group's cash management policy focuses on achieving higher interest income while managing risks associated with investment products[167] Staff and Operational Changes - The total number of staff headcounts remained unchanged during the pandemic, despite a significant slowdown in business operations across all segments[127] - As of June 30, 2020, the Group had 3,608 full-time staff, a decrease from 3,838 as of December 31, 2019[200] - Total staff-related costs increased by 10.8% compared to the same period last year, reflecting the company's commitment to maintaining its workforce during challenging times[127] Future Plans and Investments - The Group plans to expand its current operations and upgrade hospital facilities, targeting an increase to RMB 70.4 million by the end of December 2021[188] - Healthcare operations in the PRC will expand through selective mergers and acquisitions, with a target of RMB 273.9 million by the end of December 2021[188] - The Group secured new bank loan facilities totaling RMB 620.0 million in 2019 for the development of Phase II medical facilities[192]