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]

Financial Performance - Revenue for the year increased by 19.3% to RMB 1,955.5 million compared to RMB 1,639.3 million in 2018[11] - Gross profit rose by 8.5% to RMB 389.4 million, with a gross profit margin of 19.9%, down from 21.9% in 2018[11] - Profit for the year attributable to owners of the Company decreased by 55.8% to RMB 74.3 million from RMB 167.9 million in 2018[11] - Basic earnings per share decreased by 55.8% to RMB 22.2, with no final dividend declared compared to RMB 50.2 in 2018[11] - Adjusted EBITDA decreased by 47.0% to RMB 117.5 million from RMB 221.8 million in 2018[11] - The Group's consolidated profit for the year ended December 31, 2019, decreased significantly by 69.8% to RMB 48.7 million, down from RMB 161.3 million in 2018[36] - Profit attributable to shareholders fell to RMB 74.3 million in 2019, representing a year-on-year decrease of approximately 55.7% from RMB 167.9 million in 2018[146] Operational Metrics - The number of inpatient visits increased to 75.6 thousand in 2019 from 66.4 thousand in 2018, representing a growth of 13.8%[8] - The number of outpatient visits rose to 1,753.3 thousand in 2019, up from 1,650.6 thousand in 2018, marking a growth of 6.2%[8] - The number of surgeries performed increased to 46.1 thousand in 2019, compared to 41.0 thousand in 2018, reflecting a growth of 12.4%[8] - Total inpatient visits reached 75,568 in 2019, representing a year-on-year increase of 13.8% from 66,388 in 2018[40] - Total outpatient visits rose by 8.6% to 1,753,320 in 2019, compared to 1,614,141 in 2018[135] - The total number of surgical operations increased by 12.2% to 46,056 in 2019, compared to 41,045 in 2018[40] Revenue Breakdown - Revenue from cardiovascular, emergency medicine, pediatrics, and oncology disciplines grew by over 30% compared to the previous year[23] - The revenue growth year-over-year for cardiovascular related disciplines was 31.4%, while oncology related disciplines saw a growth of 42.8%[15] - The proportion of revenue from paediatrics related disciplines was 37.6%, indicating a significant contribution to overall revenue[15] - Revenue from cardiovascular related disciplines increased by 31.4% year-on-year, reaching RMB 254,476, accounting for 13.8% of total revenue[70] - Revenue from oncology related disciplines saw a significant year-on-year increase of 42.8%, totaling RMB 51,153, which represents 2.8% of total revenue[74] - Revenue from emergency medicine related disciplines recorded a year-on-year revenue increase of 33.0%, amounting to RMB 120,420, which is 6.5% of total revenue[70] Cost and Expenses - The cost of revenue for hospital services increased to RMB 1,483.5 million, a year-on-year increase of 20.4%, primarily due to rising medical staff costs and the full consolidation of Kangxin Hospital[129] - Staff-related costs increased by 23.6% compared to the previous year, driven by higher salary levels and benefits to attract quality healthcare professionals[131] - The increase in overall depreciation and amortization expenses was 64.5%, mainly due to new medical equipment purchases and leasehold improvements[131] - Administrative expenses increased to RMB232.3 million in 2019, up 25.4% from RMB185.2 million in 2018, primarily due to higher staff costs and operational expansion[146] Strategic Initiatives - The Group plans to capitalize on the development opportunities in the Greater Bay Area to expand its healthcare networks and investments[17] - The Group aims to create social value while stabilizing its growth and accelerating the expansion of its healthcare services[17] - The Group plans to accelerate the expansion of its medical network, particularly in the Greater Bay Area, while ensuring the steady development of existing institutions[28] - The Group aims to optimize its medical management system and focus on developing key specialties to enhance its industry influence[26] Challenges and Risks - Kangxin Hospital's revenue grew by 57.0% to RMB54.8 million in 2019, but it continued to face significant operational challenges[34] - An impairment loss on goodwill of RMB60.0 million was recognized for Kangxin Hospital during the year, reflecting lower than anticipated future growth[34] - Competition for quality healthcare professionals in the Chongqing region has impacted Kangxin Hospital's ability to recruit reputable doctors, affecting patient visit growth expectations[141] - Management anticipates a decrease in future cash flow projections in the short to medium term due to slowed revenue growth and rising costs[143] Future Outlook - The Group intends to capture opportunities arising from favorable policies in response to COVID-19, such as the accelerated development of internet medical services and integration of Chinese and Western medicine[109] - The Group plans to seek opportunities for hospital management operations in the future[122] - The Group aims to expand healthcare operations in the PRC through selective mergers and acquisitions, with an allocation of RMB 273.9 million, of which RMB 116.1 million remains unutilized[168] Compliance and Governance - The Group complied with applicable environmental laws and regulations in all material respects during the reporting period[192] - There was no incident of non-compliance with relevant laws and regulations that had a significant impact on the Group during the reporting period[192] - The Board does not recommend the distribution of a final dividend for the year[192]

Financial Performance - The Group's consolidated revenue reached a record high of RMB 914.4 million for the six months ended June 30, 2019, representing a period-on-period growth of 23.8% compared to RMB 738.6 million in the same period of 2018[19]. - Gross profit for the period was RMB 185.9 million, reflecting a 10.7% increase from RMB 168.0 million in the previous year[13]. - Profit for the period attributable to owners of the Company decreased by 21.0% to RMB 67.6 million, down from RMB 85.6 million in 2018[13]. - The Group's consolidated profit for the six months ended 30 June 2019 decreased to RMB 55.5 million, a decline of 37.9% compared to RMB 89.4 million for the same period in 2018[20][22]. - Earnings per share decreased by 21.1% to RMB 20.2 from RMB 25.6 in the previous year[13]. - Adjusted EBITDA for the period was RMB 136.6 million, representing a 10.4% increase from RMB 123.7 million in 2018[13]. - The Group's Adjusted EBITDA increased by 10.4% to RMB 136.6 million, up from RMB 123.7 million in the previous year, indicating strong core operations[20][22]. Operational Metrics - The number of outpatient visits increased to 861.9 thousand in 2019, up from 765.4 thousand in 2018, marking a growth of 12.6%[16]. - The number of surgeries performed rose to 8.4 thousand in 2019, compared to 6.5 thousand in 2018, indicating a growth of 29.2%[16]. - The total number of inpatient visits increased by 18.1% to 36,025, compared to 30,507 in the same period last year[25][28]. - The average spending per inpatient visit rose by 6.5% to RMB 14,883.7, up from RMB 13,969.5[25][28]. - The average spending per outpatient visit increased by 2.8% to RMB 347.6, compared to RMB 338.1 in the same period last year[25][28]. - The number of surgeries performed at the Group increased by 49.1% to 8,380 surgeries with level 3 or level 4 complexities compared to 5,619 in the same period last year[48]. Revenue Growth by Segment - Kanghua Hospital and Renkang Hospital reported revenue growth of 20.3% and 5.6%, respectively, contributing to the overall revenue increase[19]. - Revenue from cardiovascular related disciplines increased by 36.5% to RMB 122,340, accounting for 14.1% of the Group's total revenue[45]. - Oncology related disciplines saw an 80.3% increase in revenue, reaching RMB 25,121, contributing 2.9% to the total revenue[45]. - Revenue from O&G related disciplines increased by 7.6% year-on-year, driven by workforce expansion and service growth at the VIP centre[49]. - Revenue from rehabilitation and other healthcare services surged by 142.8% to RMB 35.6 million, compared to RMB 14.7 million in the same period of 2018[68]. - Revenue from special services amounted to RMB 90.6 million, representing a period-on-period increase of 24.6%[57]. Cost and Profitability - The Group's gross profit margin decreased to 20.3% from 22.8% in the previous year, a decline of 2.5 basis points[13]. - The cost of revenue for hospital services increased to RMB 694.2 million, a 24.6% rise attributed to the consolidation of costs from Zhonglian Cardiovascular Hospital[113]. - The cost of revenue for rehabilitation and other healthcare services surged by 302.9% to RMB 27.4 million, primarily due to the full consolidation of Anhui Hualin's results[114]. - The negative gross margin from Zhonglian Cardiovascular Hospital significantly offset the overall gross profit, as the hospital was still in its initial operational phase[120]. Investments and Acquisitions - The Group acquired 60% of Zhonglian Cardiovascular Hospital in August 2018, integrating it as a non-wholly owned subsidiary, which is expected to yield significant long-term benefits[80]. - The Group plans to expand its operations and upgrade hospital facilities with an estimated expenditure of RMB 782.6 million, with various timelines for completion by December 31, 2020[162]. - The Group aims to expand healthcare operations in the PRC through selective mergers and acquisitions, with an estimated expenditure of RMB 273.9 million[162]. Cash Flow and Financial Position - The Group's net cash generated from operating activities amounted to RMB 65.7 million for the six months ended June 30, 2019, representing an 85.9% increase compared to RMB 35.3 million for the same period in 2018[153]. - The net cash used in investing activities decreased by 16.8% to RMB(103.8) million for the six months ended June 30, 2019, from RMB(124.7) million in 2018[152]. - The Group maintained cash and cash equivalents of RMB 208.5 million as of June 30, 2019, slightly up from RMB 203.3 million as of December 31, 2018[146]. - The Group's structured bank deposits amounted to RMB 422.5 million as of June 30, 2019, an increase from RMB 402.0 million as of December 31, 2018[146]. Human Resources and Governance - The Group had a total of 3,488 full-time staff as of June 30, 2019, an increase from 3,448 as of December 31, 2018[170]. - The Group organizes regular mandatory training for medical staff to keep them updated on the latest developments in healthcare[173]. - The Group encourages staff to pursue professional qualifications and specialized training, including induction training for new employees and management training for young core talent[173]. - The Company has committed to maintaining high standards of corporate governance and will continue to enhance its practices[179]. Shareholding Structure - As of June 30, 2019, Mr. Wang Junyang holds 250,000,000 Domestic Shares, representing approximately 74.76% of the total issued share capital[194]. - Mr. Chen Wangzhi and Ms. Wang Aiqin each also hold 250,000,000 Domestic Shares, with the same percentage of 74.76%[194]. - The total issued share capital as of June 30, 2019, includes 250,000,000 Domestic Shares and 84,394,000 H Shares[196].

KANGHUA 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) (A joint stock company incorporated in the People's Republic of China with limited liability) 股份代號 Stock Code : 3689 *僅供議別 For identification purposes only 2018 t we i Contents 目錄 Consolidated Statement of Profi t or Loss and Other Comprehensive Income | --- | --- | |-------|----------------------------------------------------------------------| | | | | 2 | Corporate Information 公司資料 | | 4 | Financial Highlights 財務 ...