GUANGDONG KANGHUA HEALTHCARE GROUP CO., LTD.* Guangdong Kanghua Healthcare Group Co., Ltd.* (the "Company") - Notice of Publication of 2025 Interim Report (the "Current Corporate Communications") The Current Corporate Communications of the Company has been published in English and Chinese languages and are available on the website of The Stock Exchange of Hong Kong Limited ("HKEX") at www.hkexnews.hk and the Company's website at www.kanghuagp.com. If you have any difficulty in receiving or gaining access to ...

(Stock Code 股份代號: 3689) N O T I F I C AT I O N L E T T E R 通 知 信 函 GUANGDONG KANGHUA HEALTHCARE GROUP CO., LTD.* 廣東康華醫療集團股份有限公司 (A joint stock company incorporated in the People's Republic of China with limited liability) （於中華人民共和國註冊成立的股份有限公司） Dear registered shareholder(s), Guangdong Kanghua Healthcare Group Co., Ltd.* (the "Company") - Notice of Publication of 2025 Interim Report (the "Current Corporate Communications") The Current Corporate Communications of the Company has been published in English and ...

Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 981,535,000, a slight decrease of 0.3% compared to RMB 984,518,000 in 2024[9] - Gross profit increased by 8.3% to RMB 158,533,000, with a gross profit margin of 16.2%, up from 14.9% in the previous year[9] - Profit for the period attributable to owners of the Company was RMB 41,642,000, compared to a loss of RMB 19,542,000 in 2024[9] - Adjusted EBITDA rose by 38.7% to RMB 126,666,000, reflecting improved operational efficiency[9] - Basic earnings per share increased to 12.5 RMB cents, compared to a loss of 5.8 RMB cents in the same period last year[9] - The Group recorded a consolidated profit of RMB 32.6 million, compared to a loss of RMB 24.7 million for the same period last year, primarily due to the disposal of 55% equity interest in Kangxin Hospital[42] - Adjusted EBITDA increased by 38.7% to RMB 126.7 million, compared to RMB 91.3 million in the six months ended June 30, 2024, reflecting strong core operations[54] - The Group recorded a profit of RMB 32.6 million for the reporting period, compared to a loss of RMB 24.7 million for the six months ended June 30, 2024[150] - Profit attributable to shareholders was RMB 41.6 million, reversing from a loss of RMB 19.5 million in the same period last year[153] - The Group's profit before tax (IFRS measure) was RMB 52.98 million, compared to a loss of RMB 3.1 million for the same period last year[157] Operational Metrics - The number of outpatient visits in 2025 was 651,400, an increase from 577,400 in 2024[15] - Overall patient visits in the hospital services segment decreased by 12.8% compared to the same period last year, including the impact of the de-consolidation of Kangxin Hospital[43] - The total number of inpatient visits decreased to 35,311, representing a period-on-period decrease of 7.0%[55] - The total number of outpatient visits decreased to 651,350, a decline of 14.0%[59] - The total number of surgical operations rose to 25,898, marking a significant increase of 31.5%[59] - Inpatient visits at Kanghua Hospital decreased by 7.0% to 35,311, while outpatient visits dropped by 14.0% to 651,350[61] - The total number of surgical operations performed was 25,898, representing a 31.5% increase compared to 19,692 surgeries in the same period last year[72] Revenue Segmentation - Revenue from the hospital services segment was RMB873.3 million, representing a decrease of 0.8% compared to RMB880.8 million for the same period last year[43] - Revenue from the rehabilitation and other related healthcare services segment was RMB58.6 million, a decrease of 1.9% compared to RMB59.7 million for the same period last year[49] - Revenue from inpatient healthcare services amounted to RMB521.0 million, representing a period-on-period decrease of 0.3% and accounting for 53.1% of total revenue[116] - Revenue from outpatient healthcare services amounted to RMB303.9 million, representing a period-on-period decrease of 4.8% and accounting for 31.0% of total revenue[116] - Revenue from haemodialysis services amounted to RMB42.7 million, representing a period-on-period increase of 15.1% and accounting for 4.4% of total revenue[119] - Revenue from rehabilitation hospitals and other healthcare services decreased by 11.6% to RMB 25.0 million, while revenue from rehabilitation center services increased by 6.9% to RMB 33.6 million[80] - Revenue from postpartum care services amounted to RMB4.1 million, reflecting a strategic restructuring for better performance measurement[65] - Revenue from VIP healthcare services amounted to RMB 52.2 million, a decline of 2.4% from RMB 53.5 million in the same period last year, attributed to the economic environment in the Dongguan region[73] Cost Management - The Group's administrative expenses and finance costs have substantially decreased due to cost-saving measures implemented during the Reporting Period[42] - The Group's finance costs included bank loan interest of RMB 5.6 million, down from RMB 18.7 million in the previous period[148] - Total staff-related costs decreased slightly by 1.0% compared to the prior period, primarily due to the financial impact from the disposal of Kangxin Hospital[132] - Staff costs, repairs and maintenance expenses, and office expenses decreased by 21.1%, 23.9%, and 35.2% respectively compared to the same period last year[144] - The cost of revenue for the hospital services segment decreased to RMB728.5 million, representing a period-on-period decrease of 2.6% due to the disposal of 55% equity interest in Kangxin Hospital[124] Strategic Initiatives - Future outlook includes plans for market expansion and potential acquisitions to enhance service offerings[9] - The Group is investing in new technologies to improve patient care and operational efficiency[9] - The Group plans to enhance outpatient management to improve patient visits, particularly in pediatrics and respiratory care[97] - The Group aims to strengthen social security payment management systems to address revenue growth pressures from payment rate adjustments[99] - The Group will focus on high-end medical services to meet rising patient expectations for quality medical experiences[98] - The Group is actively collaborating with social insurance agencies to promote diversified payment models in response to tightening social insurance payment quotas[101] Market Trends - The aging population in China is significantly driving up healthcare demand, particularly for geriatric care and chronic disease management services[35] - The healthcare industry faced unprecedented operational pressure in 2025, impacting patient visits and revenue generation[62] - The private rehabilitation market is expanding, driven by an increasing elderly population, but competition is intensifying with more private clinics emerging[49] - Increased regional competition in medical specialties has contributed to a decrease in business volume at Kanghua Hospital and Renkang Hospital[116] Asset Management - The Group's cash flow from operations continues to generate steady income, supporting its liquidity and financial resource needs for at least the next twelve months[188] - Cash and cash equivalents reached RMB359.7 million as of June 30, 2025, an increase from RMB242.6 million as of December 31, 2024, indicating a strong liquidity position[188] - The Group's investment property, primarily the phase 1 medical facility of Kangxin Hospital, was revalued at RMB222.0 million, with a surplus of RMB20.1 million recognized[170] - The Group recognized a gain on the disposal of Kangxin Hospital of approximately RMB 19.5 million and recorded the remaining 45% interest as an associate at a fair value of RMB 23.2 million[175]

致：香港交易及結算所有限公司 FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 公司名稱: 廣東康華醫療集團股份有限公司 呈交日期: 2025年9月2日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 03689 | 說明 | H股 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 84,394,000 | RMB | | 1 RMB | | 84,394,000 | | 增加 / 減少 (-) | | | | | | RMB | | | | 本月底結存 | | | 84,394,000 | RMB | | 1 RMB | | 84,394,000 | | 2. 股份分類 | 普通股 | 股份類別 | 其他類別 ...

Core Viewpoint - Kanghua Medical (03689) reported a turnaround in profitability, achieving a net profit attributable to shareholders of 41.642 million yuan, compared to a loss in the previous period [1] Financial Performance - The company recorded revenue of 982 million yuan, representing a year-on-year decrease of 0.3% [1] - Basic earnings per share were reported at 12.5 cents [1]

Group 1 - The core viewpoint of the article is that Kanghua Medical (03689.HK) reported a slight decrease in revenue but achieved a profit for the first half of the fiscal year ending June 30, 2025, marking a turnaround from a loss in the previous period [1][2] - For the six months ending June 30, 2025, the company's revenue decreased by 0.3% to RMB 980 million [1] - The profit attributable to the company's owners for the same period was RMB 41.6 million, compared to a loss of RMB 19.5 million for the six months ending June 30, 2024 [1] Group 2 - The earnings per share for the reporting period was RMB 0.125, a significant improvement from a loss per share of RMB 0.058 in the previous period [1] - The board of directors did not recommend the payment of an interim dividend for the six months ending June 30, 2025, consistent with the previous period where no dividend was declared [1] - Kanghua Medical also issued a profit warning, expecting a profit of between RMB 32 million to RMB 33 million for the interim period [2]

Core Viewpoint - 康华医疗 reported a revenue of 982 million RMB, representing a year-on-year decrease of 0.3% [1] - The company achieved a profit attributable to owners of 41.642 million RMB, marking a turnaround from a loss to profit year-on-year [1] - Basic earnings per share were 12.5 cents [1] Financial Performance - Revenue for the period was 982 million RMB, down 0.3% compared to the previous year [1] - Profit attributable to owners was 41.642 million RMB, indicating a recovery from previous losses [1] - Basic earnings per share stood at 12.5 cents [1]

[Financial Summary](index=1&type=section&id=Financial%20Summary) Revenue slightly decreased by 0.3% to RMB 981.5 million, but the company achieved profitability, with adjusted EBITDA up 38.7% to RMB 126.7 million - **Table: Financial Summary for the Six Months Ended 30 June 2025** | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 981.5 | 984.5 | -0.3% | | Profit | 32.6 | (24.7) | Turned loss into profit | | Profit for the period attributable to owners of the Company | 41.6 | (19.5) | Turned loss into profit | | Earnings per share | 12.5 cents | (5.8 cents) | Turned positive | | Adjusted EBITDA | 126.7 | 91.3 | +38.7% | | Interim Dividend | None | None | Unchanged | [Interim Results](index=2&type=section&id=Interim%20Results) The Group's unaudited interim results for H1 2025 show a significant turnaround from loss to profit, driven by asset disposal, hemodialysis growth, and cost control [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) Revenue slightly decreased by 0.3% to RMB 981.5 million, but gross profit increased by 8.3% to RMB 158.5 million, turning a loss of RMB 24.7 million into a profit of RMB 32.6 million - **Table: Key Data from Condensed Consolidated Statement of Profit or Loss** | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 981,535 | 984,518 | -0.3 | | Cost of revenue | (823,002) | (838,119) | -1.8 | | Gross profit | 158,533 | 146,399 | +8.3 | | Other income | 22,752 | 21,154 | +7.6 | | Administrative expenses | (108,754) | (140,468) | -22.6 | | Finance costs | (8,113) | (17,061) | -52.4 | | Profit/(loss) before tax | 52,984 | (3,100) | Turned loss into profit | | Income tax expense | (20,413) | (21,557) | -5.3 | | Profit/(loss) for the period | 32,571 | (24,657) | Turned loss into profit | | Profit/(loss) for the period attributable to owners of the Company | 41,642 | (19,542) | Turned loss into profit | | Basic earnings/(loss) per share (RMB cents) | 12.5 | (5.8) | Turned positive | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group recorded a profit of RMB 32.6 million and total comprehensive income of RMB 52.7 million, significantly improving from a prior-year loss due to property revaluation gains - **Table: Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income** | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit/(loss) for the period | 32,571 | (24,657) | | Property revaluation gains (net of tax) | 20,098 | – | | Other comprehensive income for the period | 20,098 | – | | Total comprehensive income/(loss) for the period | 52,669 | (24,657) | | Total comprehensive income/(loss) for the period attributable to owners of the Company | 61,740 | (19,542) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total non-current assets were RMB 1,628.9 million, total current assets RMB 1,156.0 million, with net assets increasing to RMB 1,464.7 million, indicating a solid financial position - **Table: Key Data from Condensed Consolidated Statement of Financial Position** | Indicator | 30 June 2025 (RMB thousand) | 31 December 2024 (RMB thousand) | | :--- | :--- | :--- | | Total non-current assets | 1,628,947 | 1,631,054 | | Total current assets | 1,156,008 | 1,110,481 | | Total current liabilities | 889,611 | 873,578 | | Net current assets | 266,397 | 236,903 | | Total assets less current liabilities | 1,895,344 | 1,867,957 | | Total non-current liabilities | 430,603 | 405,610 | | Net assets | 1,464,741 | 1,462,347 | | Total equity | 1,464,741 | 1,462,347 | [Notes](index=6&type=section&id=Notes) This section provides supplementary information on the interim financial statements, including preparation basis, accounting policies, significant events, and specific account changes [1. General Information and Basis of Preparation](index=6&type=section&id=1.%20General%20Information%20and%20Basis%20of%20Preparation) Guangdong Kanghua Healthcare Co., Ltd. operates hospital, rehabilitation, hemodialysis, and elderly care services in China, with interim financial data prepared in RMB under IAS 34 and HKEX Listing Rules - The Company is principally engaged in providing hospital services, rehabilitation and other medical services, hemodialysis services, and elderly care services in China[8](index=8&type=chunk) - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 and the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[9](index=9&type=chunk) [1A. Significant Events and Transactions during the Interim Period](index=6&type=section&id=1A.%20Significant%20Events%20and%20Transactions%20during%20the%20Interim%20Period) The Group disposed of a 55% equity interest in Kangxin Hospital for RMB 34.936 million, recognizing a gain of RMB 19.480 million, and now accounts for the remaining 45% as an associate - On 9 January 2025, the Company entered into a sale and purchase agreement with Beijing Bosong Health Management Co., Ltd. for the disposal of a 55% equity interest in Chongqing Kanghua Zhonglian Cardiovascular Hospital Co., Ltd. (Kangxin Hospital) for a consideration of **RMB 34.936 million**[10](index=10&type=chunk) - The disposal was completed on 8 February 2025, after which Kangxin Hospital ceased to be a subsidiary of the Company and its financial results are no longer consolidated; the Company has accounted for its remaining **45% equity interest** in Kangxin Hospital as an interest in an associate using the equity method[11](index=11&type=chunk) - The Group recognized a gain on disposal of approximately **RMB 19.480 million** and recognized its remaining 45% equity interest in Kangxin Hospital (at fair value) of **RMB 23.158 million** as an interest in an associate[11](index=11&type=chunk) [2. Principal Accounting Policies](index=7&type=section&id=2.%20Principal%20Accounting%20Policies) Interim financial data is prepared under historical cost, applying new IFRS amendments for investments in associates and investment properties for the first time [Application of New Accounting Policies for Investments in Associates and Investment Properties](index=7&type=section&id=Application%20of%20New%20Accounting%20Policies%20for%20Investments%20in%20Associates%20and%20Investment%20Properties) Investments in associates are equity-accounted, with retained interests measured at fair value upon loss of significant influence, and investment properties are fair-valued with changes in profit or loss - Investments in associates are accounted for in the consolidated financial statements using the equity method, initially recognized at cost and adjusted for the share of profit or loss and other comprehensive income[14](index=14&type=chunk) - When the Group ceases to have significant influence over an associate, the retained interest is measured at fair value, and the difference between the carrying amount of the associate and the fair value of the retained interest plus proceeds from disposal is recognized in profit or loss[17](index=17&type=chunk)[18](index=18&type=chunk) - Investment properties are measured at fair value, with gains or losses arising from changes in fair value recognized in profit or loss; when an owner-occupied property is transferred to investment property, the difference between the carrying amount and fair value is recognized in other comprehensive income[20](index=20&type=chunk) [Application of Amendments to International Financial Reporting Standards](index=8&type=section&id=Application%20of%20Amendments%20to%20International%20Financial%20Reporting%20Standards) The Group adopted IAS 21 amendments "Lack of Exchangeability" in this interim period, which had no material impact on its financial position or performance - The Group first applied the amendments to IAS 21 "Lack of Exchangeability"[21](index=21&type=chunk) - The application of these amendments did not have a significant impact on the Group's financial position and performance for the current and prior periods[

Core Viewpoint - Kanghua Medical (03689.HK) expects to report a profit of approximately RMB 32 million to RMB 33 million for the six months ending June 30, 2025, compared to a loss of about RMB 24.7 million for the same period ending June 30, 2024 [1] Financial Performance - The anticipated profit is primarily attributed to the sale of a 55% stake in Kangxin Hospital, which is expected to generate a gain of approximately RMB 19.5 million [1] - The financial performance of Kangxin Hospital has been removed from the group's consolidated financial statements following the sale, as it had been recording losses in previous years [1] Equity Accounting - The remaining 45% stake in Kangxin Hospital will be accounted for using the equity method, with an expected share of losses amounting to approximately RMB 18.4 million for the six months ending June 30, 2025 [1] - The losses from the remaining 55% stake will not be included in the group's financial performance for the mid-2025 period, resulting in a net positive impact on the group's financial results compared to the previous comprehensive accounting of Kangxin Hospital's losses [1]

Core Viewpoint - 康华医疗 expects to report a profit of approximately RMB 32 million to RMB 33 million for the six months ending June 30, 2025, compared to a loss of approximately RMB 24.7 million for the six months ending June 30, 2024, primarily due to the divestment of 55% equity in 康心医院 [1] Financial Performance - The divestment of 康心医院 is expected to generate a gain of approximately RMB 19.5 million by mid-2025 [1] - 康心医院 has incurred losses over the past few years, and its financial performance will no longer be consolidated into the group's financial results post-divestment [1] - The remaining 45% equity in 康心医院 will be accounted for using the equity method, with an expected share of losses amounting to approximately RMB 18.4 million by mid-2025 [1] - The divestment has a net positive impact on the group's financial performance compared to the previous full consolidation of 康心医院's losses [1]