Core Viewpoint - 弘和仁爱医疗 (03869.HK) is scheduled to hold a board meeting on August 27, 2025, to review and approve the interim results for the six months ending June 30, 2025, and to consider the proposal for an interim dividend distribution, if any [1] Group 1 - The board meeting will take place on August 27, 2025 [1] - The meeting will focus on the interim results for the six months ending June 30, 2025 [1] - The company will also consider the proposal for an interim dividend distribution [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 HOSPITAL CORPORATION 弘和仁愛醫療集團有限公司 Hospital Corporation of China Limited （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） 弘和仁愛醫療集團有限公司 董事長兼代理行政總裁 陳帥 香港，二零二五年八月十五日 於本公告日期，本公司董事包括執行董事陳帥先生、蒲成川先生及潘建麗女士；非執行 董事劉路女士及王楠女士；以及獨立非執行董事党金雪先生、史錄文先生及周向亮先生。 （股份代號：3869） 董事會會議日期 弘和仁愛醫療集團有限公司（「本公司」）董事會（「董事會」）謹此公佈，本公司將於二零 二五年八月二十七日（星期三）舉行董事會會議，藉以（其中包括）考慮及（如認為適當）批 准本公司及其附屬公司截至二零二五年六月三十日止六個月之未經審核中期業績及其發佈， 以及考慮派發中期股息（如有）。 代表董事會 ...

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7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 弘和仁愛醫療集團有限公司（於開曼群島註冊成立的有限公司) 第 2 頁 共 10 頁 v 1.1.1 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 03869 | 說明 | 普通股 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 500,000,000 | HKD | | 0.001 HKD | | 500,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 500,000,000 | HKD | | 0.001 HKD | ...

Core Viewpoint - The company has entered into a share transfer agreement to acquire 100% equity of Cixi Honghe Property Management Co., Ltd. for a total consideration of RMB 49.47 million, which will be paid in three installments [1] Group 1 - The acquisition will result in Cixi Honghe Property Management becoming a subsidiary of the company, and its financial performance will be consolidated into the group's financial statements [1] - The transaction is classified as a discloseable transaction as the applicable percentage ratio exceeds 5% but is below 25%, thus requiring compliance with the listing rules [1]

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 1,442,292,000, representing a slight increase from RMB 1,427,733,000 in 2023[8] - Gross profit margin improved to 19.1% in 2024 from 16.8% in 2023, with gross profit amounting to RMB 275,819,000[8] - Operating profit for 2024 was RMB 181,861,000, up from RMB 127,838,000 in 2023, indicating a significant increase in operational efficiency[8] - Net profit for the year was RMB 13,790,000, a decrease from RMB 168,344,000 in 2023, reflecting challenges in the market[8] - The company’s revenue from integrated hospital services decreased from RMB 1,326.3 million in 2023 to RMB 1,303.4 million in 2024[31] - The company’s revenue from pharmaceutical sales decreased from RMB 11.5 million in 2023 to RMB 9.0 million in 2024[31] - The revenue from the comprehensive hospital services segment decreased by approximately 1.7% from RMB 1,326.3 million in 2023 to about RMB 1,303.4 million in 2024[33] - Pharmaceutical sales revenue decreased by RMB 2.5 million to approximately RMB 9.0 million in 2024, down from about RMB 11.5 million in 2023[34] - The net profit for the year ended December 31, 2024, was approximately RMB 13.8 million, a decrease of about RMB 154.5 million compared to RMB 168.3 million in the previous year[39] Assets and Liabilities - Total assets as of December 31, 2024, were RMB 2,583,162,000, an increase from RMB 2,498,100,000 in 2023[10] - Total liabilities increased to RMB 2,007,483,000 in 2024 from RMB 1,906,897,000 in 2023, indicating a rise in financial obligations[10] - Total equity as of December 31, 2024, was approximately RMB 575.7 million, down from RMB 591.2 million in 2023[47] - The company's borrowings as of December 31, 2024, were approximately RMB 82.1 million, with a debt ratio of about 3.2%[50] - The company's debt-to-asset ratio increased to approximately 78% as of December 31, 2024, from 76% in the previous year, reflecting a higher leverage position[183] Operational Efficiency and Strategy - The company emphasized enhancing medical quality and safety management to improve brand competitiveness and differentiate from public hospitals[11] - The information technology development team was established to support system upgrades and improve resource management efficiency[12] - The company is focusing on optimizing supply chain management to enhance operational efficiency and service capabilities[12] - The company is focusing on enhancing its asset quality and innovating business models as part of its three-step development strategy[14] - The company aims to leverage emerging medical technologies such as artificial intelligence and next-generation gene sequencing to improve service quality and efficiency[14] - The company is committed to improving healthcare quality and safety through systematic training and competitions for medical staff[21] - The company is focusing on risk control mechanisms and maintaining a high-quality talent reserve to seize opportunities in the "silver economy"[14] - The company is adapting to the healthcare reform environment, which is expected to lead to a decline in revenue growth rates for medical institutions[16] Cash Flow and Financial Management - Cash and cash equivalents increased by approximately RMB 191.1 million from RMB 523.0 million in 2023 to about RMB 714.1 million in 2024[40] - The net cash inflow from operating activities for the year was approximately RMB 212.1 million, including a net cash inflow of RMB 243.6 million before changes in working capital[48] - The company focuses on maintaining sufficient cash and cash equivalents to meet operational funding needs, addressing liquidity risk[182] Shareholder and Equity Information - The total share capital of the company as of the report date is HKD 138,194, divided into 138,194,000 shares with a par value of HKD 0.001 each[64] - The company does not plan any significant acquisitions or disposals of subsidiaries, associates, or joint ventures for the year ending December 31, 2024[52] - The board of directors does not recommend the payment of a final dividend for the year ending December 31, 2024[57] - The company has confirmed that the share-based compensation expenses related to resigning participants will be recognized as capital reserves[148] Compliance and Regulatory Matters - The group has complied with all relevant laws and regulations in China, Hong Kong, and the Cayman Islands as of the report date[185] - The auditor has issued an unqualified opinion regarding the company's disclosed ongoing connected transactions, confirming compliance with relevant regulations[135] - The board will discuss compliance and regulatory inquiries from government agencies at regular meetings, at least quarterly[113] Employee and Management Information - The total employee count increased to 1,841 as of December 31, 2024, up from 1,457 in the previous year, with total employee benefits expenses amounting to approximately RMB 446.7 million[58] - The company’s compensation policy is regularly reviewed based on legal frameworks, market conditions, and individual employee performance, with share awards linked to performance targets[166] - The group’s management team includes experienced professionals with extensive backgrounds in finance and investment[191][194] Environmental and Social Responsibility - The environmental compliance cost for the group was approximately RMB 766,380 for the year ending December 31, 2024, compared to RMB 655,442 in 2023[184] - The group has established an infection management committee to formulate annual work plans and supervise hospital infection prevention[184] - The group has no reported environmental claims, lawsuits, penalties, or administrative sanctions as of the report date[184]

Financial Performance - The total revenue for the year ended December 31, 2024, was RMB 1,442,292,000, representing a slight increase from RMB 1,427,733,000 in 2023, which is a growth of approximately 1.0%[5] - The gross profit margin improved to 19.1% in 2024 from 16.8% in 2023, while the adjusted gross profit margin increased to 20.3% from 18.3%[5] - The net profit for the year was RMB 13,790,000, a significant decrease from RMB 168,344,000 in the previous year, indicating a decline of approximately 91.8%[6] - Adjusted net profit for the year was RMB 141,924,000, up from RMB 104,120,000 in 2023, reflecting an increase of about 36.5%[5] - Basic earnings per share turned negative at RMB (0.282) compared to RMB 0.956 in 2023, indicating a substantial decline in profitability[6] - The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for 2024 was RMB 258,091 thousand, compared to RMB 208,749 thousand in 2023, indicating a growth of about 23.7%[27][28] - The net loss attributable to the company's owners for 2024 was RMB 38,628 thousand, a significant decline from a profit of RMB 131,384 thousand in 2023[35] - Revenue increased by approximately 1.0% from RMB 1,427.7 million in 2023 to RMB 1,442.3 million in 2024[52] Assets and Liabilities - Total assets as of December 31, 2024, were RMB 1,099,116,000, compared to RMB 950,309,000 in 2023, marking an increase of approximately 15.6%[8] - The total assets of the group as of December 31, 2024, were RMB 2,583,162 thousand, up from RMB 2,498,100 thousand in 2023, reflecting an increase of approximately 3.4%[27][28] - The total liabilities increased to RMB 2,007,483 thousand in 2024 from RMB 1,906,897 thousand in 2023, marking an increase of about 5.3%[27][28] - Non-current liabilities decreased to RMB 196,614,000 from RMB 244,338,000 in 2023, a reduction of approximately 19.5%[9] - The company’s total equity decreased to RMB 575,679,000 from RMB 591,203,000, reflecting a decline of about 2.6%[9] - As of December 31, 2024, the group's current liabilities exceed current assets by RMB 711,753,000, including convertible bonds maturing in 2025 amounting to RMB 1,060,315,000[14] - The adoption of the revised International Accounting Standard 1 resulted in the reclassification of convertible bonds maturing on September 30, 2025, from non-current to current liabilities, impacting the total current liabilities to RMB 1,662,559,000[19] Cash Flow and Financial Position - The company reported a cash and cash equivalents balance of RMB 714,120,000, up from RMB 523,027,000 in the previous year, representing a growth of about 36.5%[8] - The net cash inflow from operating activities was approximately RMB 212.1 million, including a net cash inflow of RMB 243.6 million before changes in working capital[69] - The company reported a net cash inflow from investment activities of approximately RMB 42.6 million, primarily from the redemption of fixed deposits and the sale of financial assets[70] - As of December 31, 2024, cash and cash equivalents amounted to approximately RMB 714.1 million, compared to RMB 523.0 million in 2023[71] - The company's interest-bearing debt ratio was approximately 3.2% as of December 31, 2024[71] Revenue Segmentation - The group operates through three reportable segments: Integrated Hospital Services, Hospital Management Services, and Pharmaceutical Sales, with revenues generated from outpatient and inpatient services, management services, and retail pharmacy sales respectively[20][21][22] - Hospital management services revenue rose by approximately 42.7% from RMB 86.9 million in 2023 to RMB 124.1 million in 2024[53] - Comprehensive hospital services revenue decreased by approximately 1.7% from RMB 1,326.3 million in 2023 to RMB 1,303.4 million in 2024[54] - Pharmaceutical sales revenue decreased from approximately RMB 11.5 million in 2023 to RMB 9.0 million in 2024, a decline of RMB 2.5 million[55] - The group reported external customer revenue of RMB 1,442,292 thousand in 2024, with the hospital services segment contributing RMB 1,303,405 thousand[27] Operational Highlights - The company is primarily engaged in operating and managing hospitals, providing management and supply chain services, and pharmaceutical sales in China[10] - The company is focusing on enhancing healthcare service quality and exploring systematic management solutions for non-public comprehensive medical institutions, leveraging digital technology[47] - The group has implemented a centralized procurement management system, organizing 22 significant procurement projects in 2024, including 13 medical device projects[49] - The company emphasizes a management philosophy of "lawful practice, safety standards, and healthy development," guiding hospitals in strategic planning and safety inspections[50] - The healthcare market is expected to face intensified competition in 2024, with policies aimed at improving medical service quality and efficiency[46] - The company is investing in digital health management capabilities, achieving recognition for its applications in AI-assisted imaging and smart case management[48] Employee and Governance - The total employee benefits expenditure, including director remuneration, was approximately RMB 446.7 million for the year ending December 31, 2024, compared to approximately RMB 430.5 million in 2023[84] - The workforce increased to 1,841 employees as of December 31, 2024, up from 1,457 employees in 2023, primarily due to business expansion[84] - The company has adopted the Corporate Governance Code and believes it has complied with applicable provisions during the review year[87] - The audit committee, consisting of three independent non-executive directors, has reviewed the financial statements for the fiscal year ending December 31, 2024, ensuring compliance with applicable accounting standards and regulations[89] Dividends and Investments - The company did not declare any dividends for the year ending December 31, 2024, consistent with 2023[43] - The company has not conducted any significant acquisitions or disposals of subsidiaries, associates, or joint ventures from January 1, 2024, to December 31, 2024[79] - There are no major investments or future plans for significant investments or capital assets as of December 31, 2024[80] - The company does not recommend the payment of a final dividend for the year ending December 31, 2024[83] Risks and Compliance - The company has faced foreign exchange risks primarily related to transactions in USD and HKD, with no hedging instruments currently in use[81] - The company has adopted a code of conduct for securities trading by directors and relevant employees, confirming compliance for the fiscal year ending December 31, 2024[88]

Revenue and Profitability - Revenue for the six months ended June 30, 2024, was RMB 719.5 million, a slight increase from RMB 717.8 million in the same period of 2023[6]. - Adjusted gross profit for the period was RMB 161.8 million, with an adjusted gross profit margin of 22.5%, up from 18.3% in the previous year[6]. - Adjusted net profit reached RMB 87.3 million, representing an increase from RMB 60.9 million in the prior year, with an adjusted net profit margin of 12.1% compared to 8.5%[6]. - The hospital management services segment generated revenue of RMB 62.0 million, significantly up from RMB 36.9 million in the previous year[6]. - The integrated hospital services segment reported revenue of RMB 651.7 million, a decrease from RMB 674.2 million year-on-year[6]. - The company's revenue for the period was approximately RMB 719.5 million, a 0.2% increase from RMB 717.8 million in the same period last year, primarily due to increased management service income provided to hospitals[14]. - Adjusted gross profit was approximately RMB 161.8 million, a 23.0% increase from RMB 131.6 million in the same period last year, driven by increased diagnostic service income from Yangsi Hospital and reduced related costs[14]. - Adjusted operating profit was approximately RMB 123.0 million, up from RMB 83.6 million in the same period last year, mainly due to increased diagnostic service income from Yangsi Hospital and government subsidies[15]. - Adjusted net profit was approximately RMB 87.3 million, a 43.4% increase from RMB 60.9 million in the same period last year, attributed to increased diagnostic service income and government subsidies[15]. Financial Position - As of June 30, 2024, total equity was approximately RMB 612.5 million, up from RMB 591.2 million as of December 31, 2023[16]. - Current assets increased to approximately RMB 959.5 million from RMB 950.3 million as of December 31, 2023, mainly due to increases in cash and cash equivalents and receivables[16]. - Current liabilities decreased to approximately RMB 1,628.9 million from RMB 1,662.6 million as of December 31, 2023, primarily due to reductions in accrued expenses and other payables[16]. - The company maintained a current ratio of approximately 0.59 as of June 30, 2024, compared to 0.57 as of December 31, 2023[16]. - The company has a debt-to-asset ratio of approximately 3.3% as of June 30, 2024, indicating sufficient operational funding to meet demands[17]. - The company reported a total asset value of RMB 2,493,617 thousand as of June 30, 2024, with total liabilities amounting to RMB 1,881,144 thousand[84]. - The company’s total liabilities exceeded its total assets by RMB 669,409,000 as of June 30, 2024, indicating potential liquidity concerns[72]. Operational Initiatives - The company is enhancing standardized management solutions for its healthcare institutions to improve operational quality and asset value[9]. - The group is actively implementing quality and service improvement initiatives across its healthcare network, focusing on training and risk management[10]. - The company has established a dedicated internal control department to oversee auditing and risk management, aiming to identify and mitigate key risks[10]. - The company continues to deepen anti-corruption measures and compliance management within its healthcare network[10]. Employee and Shareholder Information - As of June 30, 2024, the company had a total of 1,491 employees, an increase from 1,437 employees as of June 30, 2023[27]. - Employee benefits expenses, including director remuneration, amounted to approximately RMB 215.1 million for the six months ended June 30, 2024, compared to RMB 209.3 million for the same period in 2023[27]. - Liu Lu holds a 6.58% equity interest in the company, representing 9,098,800 shares as of June 30, 2024[29]. - Hony Group Management Limited and its affiliates collectively hold approximately 117.01% equity interest in the company, with 161,693,985 shares[30]. - Hony Fund V, L.P. and its affiliates also hold 123,000,000 shares, representing 89.01% equity interest[30]. - The company has adopted several share-based payment plans to incentivize and reward outstanding contributors[27]. Debt and Financing - The company has entered into a loan agreement with Jinhua Hospital, with a maximum principal amount of RMB 100.0 million and an annual interest rate of 4.79%[19]. - As of June 30, 2024, the outstanding principal amount of the existing loan is RMB 20.0 million[19]. - The maturity date of the convertible bonds issued to Yu Feng Limited has been extended from December 29, 2023, to September 30, 2025[22]. - The company has issued convertible bonds amounting to HKD 468.0 million, with an initial conversion price of HKD 18.00 per share[35]. - The net proceeds from the convertible bonds issuance were approximately HKD 467.0 million, with HKD 405.0 million used for the acquisition of Cixi Hongai Medical Management Co., Ltd.[36]. - The company has not converted any of the convertible bonds into shares as of June 30, 2024[36]. Compliance and Governance - The audit committee has reviewed the unaudited interim results and financial information, confirming compliance with applicable accounting standards and regulations[59]. - The company has adopted a code of conduct for securities trading, ensuring compliance by all directors and relevant employees during the reporting period[58]. - The company is currently seeking a suitable candidate for the position of CEO to ensure compliance with corporate governance codes[57]. Segment Performance - The group reported three operating segments: Comprehensive Hospital Services, Hospital Management Services, and Pharmaceutical Sales, all generating revenue in China[79][80][81]. - The revenue from the Comprehensive Hospital Services segment is derived from outpatient and inpatient services provided in hospitals[80]. - The Hospital Management Services segment generates income from operational management, supply chain services, and other ancillary services[81]. - The Pharmaceutical Sales segment primarily comes from retail pharmacy sales[82]. - The segment profit before interest, tax, depreciation, and amortization (EBITDA) for the integrated hospital services was RMB 73,841 thousand, while the hospital management services segment reported RMB 79,819 thousand[84]. Financial Challenges - The company reported a loss attributable to shareholders of approximately RMB 18.7 million for the six months ended June 30, 2024, resulting in a basic and diluted loss per share of RMB 0.14[37]. - The company incurred a net loss of RMB 18,718,000 for the six months ended June 30, 2024, compared to a profit of RMB 126,218,000 in the previous period[67]. - The company’s accumulated losses as of June 30, 2024, stood at RMB 943,009,000, reflecting ongoing financial challenges[67]. - The company reported a significant drop in financial income, with net financial income decreasing to RMB (52,360) thousand from RMB 128,794 thousand in the previous year[62]. Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2024, was RMB 54,982,000, compared to RMB 59,512,000 for the same period in 2023, reflecting a decline of approximately 4.5%[68]. - The company reported a net cash outflow from investing activities of RMB 5,458,000 for the six months ended June 30, 2024, significantly lower than RMB 63,402,000 in the prior year[68]. - The group acquired property and equipment valued at RMB 10,900,000 for the six months ending June 30, 2024, compared to RMB 3,041,000 for the same period in 2023, indicating a substantial increase in capital expenditure[100].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 719,503,000, a slight increase from RMB 717,831,000 in the same period last year, representing a growth of 0.2%[2] - Adjusted gross profit for the period was RMB 161,804,000, up from RMB 131,568,000, resulting in an adjusted gross margin of 22.5%, compared to 18.3% in the previous year[2] - Adjusted net profit increased to RMB 87,334,000, compared to RMB 60,893,000 in the prior period, reflecting a growth of 43.3%[2] - The company reported a net profit of RMB 25,497,000 for the current period, a significant decrease from RMB 177,916,000 in the previous year[3] - The basic earnings per share for the current period was (RMB 0.14), compared to RMB 0.91 in the same period last year[5] - The total comprehensive income for the period was RMB 21,270,000, down from RMB 185,274,000 in the previous year[6] - The company reported a net loss attributable to shareholders of RMB 18,718,000 for the six months ended June 30, 2024, compared to a profit of RMB 126,218,000 for the same period in 2023, marking a substantial decline in profitability[27] - The basic loss per share for the six months ended June 30, 2024, was RMB (0.14), compared to earnings of RMB 0.91 per share for the same period in 2023, indicating a significant downturn in earnings per share[27] Assets and Liabilities - Non-current assets totaled RMB 1,534,101,000 as of June 30, 2024, slightly down from RMB 1,547,791,000 at the end of 2023[7] - Current assets increased to RMB 959,516,000 from RMB 950,309,000 at the end of 2023[8] - The company’s total liabilities decreased to RMB 1,628,925,000 from RMB 1,662,559,000 at the end of 2023[8] - The net asset value increased to RMB 612,473,000 as of June 30, 2024, compared to RMB 591,203,000 at the end of 2023[8] - As of June 30, 2024, the group's current liabilities exceeded current assets by RMB 669,409,000, including RMB 989,673,000 of convertible bonds reclassified from non-current to current[10] - The total current liabilities amounted to RMB 1,628,925,000, reflecting a decrease of RMB 989,673,000 due to the reclassification of convertible bonds[13] - The total non-current liabilities amounted to RMB 252,219,000 after the reclassification of convertible bonds[13] - The company’s total liabilities as of June 30, 2024, were RMB 1,881,144,000, compared to RMB 1,906,897,000 as of December 31, 2023, showing a slight reduction in liabilities[20] Operational Segments - The group operates in three reportable segments: Comprehensive Hospital Services, Hospital Management Services, and Pharmaceutical Sales, all generating revenue in China[15] - For the six months ended June 30, 2024, the total revenue from the pharmaceutical sales segment was RMB 4,427,000, a decrease from RMB 6,787,000 for the same period in 2023, representing a decline of approximately 34.5%[19] - The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the pharmaceutical sales segment was RMB 498,000 for the six months ended June 30, 2024, compared to RMB 533,000 for the same period in 2023, indicating a slight decrease of about 6.6%[20] - The total assets for the pharmaceutical sales segment as of June 30, 2024, were RMB 6,408,000, while total liabilities were RMB 2,817,000, reflecting a significant asset-to-liability ratio[19] Government Grants and Taxation - The company recognized government grants and subsidies amounting to RMB 10,179,000 for the six months ended June 30, 2024, compared to no such income in the same period of 2023[22] - The income tax expense for the six months ended June 30, 2024, was RMB 35,948,000, an increase from RMB 23,056,000 for the same period in 2023, reflecting a rise of approximately 56%[21] Employee and Governance - The total employee benefits expenditure, including director remuneration, for the six months ended June 30, 2024, is approximately RMB 2,151 million, compared to RMB 2,093 million for the same period in 2023, reflecting an increase of 2.8%[49] - As of June 30, 2024, the company has a total of 1,491 employees, an increase from 1,437 employees as of June 30, 2023, representing a growth of 3.8%[49] - The audit committee has reviewed the unaudited performance and interim financial information, confirming compliance with applicable accounting standards and regulations[52] - The company has adopted the corporate governance code as per the listing rules and is currently seeking a suitable candidate for the CEO position to ensure compliance with governance standards[51] Future Outlook and Strategic Initiatives - The outlook for the second half of 2024 includes a commitment to strengthen control systems and improve asset quality while adapting to national healthcare reform requirements[37] - The company is actively addressing challenges posed by domestic policy and industry changes to ensure the sustainable operation of its network hospitals[34] - The group continues to focus on expanding its hospital management and consulting services in the Chinese market[15] - The company is focusing on enhancing the quality and safety of medical services through systematic training and quality improvement initiatives in its network hospitals[35] - The group is advancing the construction of a centralized procurement platform to reduce costs and improve supply chain efficiency for medical supplies[36] Dividends and Investments - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the previous year[33] - The company did not engage in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the period from January 1, 2024, to June 30, 2024[41] - There were no major investments or future plans for significant investments or capital assets as of June 30, 2024[44] Risks and Compliance - The company faces foreign exchange risks primarily related to transactions in USD and HKD, but does not currently use any derivative financial instruments to hedge these risks[45] - The company has not experienced any significant events after June 30, 2024, up to the date of this announcement[50] - There have been no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries[53] - The interim report will be published on the Hong Kong Stock Exchange and the company's website at an appropriate time[54]

Financial Performance - For the fiscal year ending December 31, 2023, the company reported total revenue of approximately RMB 1,427.7 million, an increase of about 25% from RMB 1,143.0 million in 2022[8] - The revenue from comprehensive hospital services reached approximately RMB 1,326.3 million, compared to RMB 1,049.4 million in 2022, marking an increase of approximately 26.4%[8] - The revenue from hospital management services was approximately RMB 86.9 million, up from RMB 81.6 million in the previous year, reflecting a growth of about 4%[8] - Total revenue for the year ended December 31, 2023, was RMB 1,427,733,000, representing a 24.9% increase from RMB 1,142,951,000 in 2022[105] - Gross profit margin improved to 16.8% in 2023 from 13.2% in 2022, with gross profit amounting to RMB 239,360,000[105] - Operating profit for 2023 was RMB 214,498,000, a significant recovery from an operating loss of RMB 537,988,000 in 2022[105] - Net profit for the year was RMB 168,344,000, compared to a net loss of RMB 528,597,000 in the previous year, marking a turnaround[105] Expenses and Liabilities - Administrative expenses rose by approximately 35.8% to about RMB 129.2 million from RMB 95.2 million in 2022, primarily due to increased employee benefits and operational costs[11] - The company's financial income decreased to approximately RMB 9.8 million from RMB 14.6 million in the previous year, a decline of about 32.9%[12] - The income tax expense for the year was approximately RMB 47.9 million, compared to a tax credit of about RMB 4.0 million in 2022, reflecting a change of approximately RMB 51.9 million[13] - Total liabilities decreased to RMB 1,906,897,000 in 2023 from RMB 1,992,136,000 in 2022, indicating improved financial health[105] Cash Flow and Investments - The company had a net cash inflow from operating activities of approximately RMB 82.7 million, with a pre-working capital change cash inflow of about RMB 185.6 million[20] - The company has not made any significant investments or future plans for major investments or capital assets as of December 31, 2023[24] - The company’s available distributable reserves amount to approximately RMB 325.9 million[36] Employee and Operational Metrics - As of December 31, 2023, the company employed 1,457 staff, an increase from 1,422 in the previous year, with total employee benefits expenses amounting to approximately RMB 430.5 million[28] - The group reported over 2 million outpatient visits and more than 90,000 inpatient visits across its five hospitals in the Yangtze River Delta region[114] Corporate Governance and Compliance - The company is focusing on strengthening its anti-corruption framework and standardizing supply chain development, having engaged compliance experts to identify and manage compliance risks[159] - The company is actively exploring systematic and standardized management solutions for non-public medical institutions, aligning with national healthcare reform goals[149] Future Plans and Challenges - The company plans to continue its "three-step" development strategy, focusing on innovative business models and specialized services such as post-operative rehabilitation and dental care[107] - Future challenges include the ongoing healthcare reform and the uncertain recovery of patient sources from the real estate and export trade sectors[107] Debt and Financing - The company's interest-bearing debt ratio is approximately 3.3%, calculated as the total borrowings divided by total assets[48] - The loan balance for Jinhua Guangfu Hospital as of December 31, 2023, is RMB 145.0 million, with a maximum loan amount of RMB 550.0 million guaranteed[53] - The company provided a corporate guarantee for an outstanding principal amount of up to RMB 50 million related to a loan from Nanyang Commercial Bank (China) Co., Ltd.[190] Shareholder Returns - The company does not recommend a final dividend for the year ended December 31, 2023, consistent with the previous year[35] - The company has not purchased, sold, or redeemed any of its listed securities during the year ending December 31, 2023, except as disclosed in the report[92] Technological Integration and Management - The company is enhancing its hospital management services by implementing systematic management methods in various areas, including medical quality and safety, to improve operational efficiency[155] - The company has established a virtual private network connecting its hospitals and implemented a unified hospital resource planning platform to support operational integration[160]

Financial Performance - The company's revenue for the year ended December 31, 2023, was RMB 1,427,733 thousand, representing a 24.9% increase from RMB 1,142,951 thousand in 2022[6] - The net profit for the year was RMB 168,344 thousand, a significant recovery from a loss of RMB 528,597 thousand in the previous year[6] - Adjusted net profit increased to RMB 104,120 thousand, compared to RMB 65,858 thousand in 2022, reflecting a 58% year-over-year growth[6] - Basic earnings per share improved to RMB 0.956 from a loss of RMB 3.480 in 2022[6] - The company reported a total comprehensive income of RMB 181,528 thousand for the year, recovering from a loss of RMB 531,378 thousand in 2022[22] - The profit before tax for 2023 was RMB 216,204 thousand, compared to a loss of RMB 316,837 thousand in 2022, indicating a turnaround in profitability[75][83] - The company reported a pre-tax profit of RMB 72,345 thousand, a significant improvement compared to a loss of RMB 458,611 thousand in the previous year[102] - The company recorded a net profit of approximately RMB 168.3 million for the year ended December 31, 2023, a significant increase of approximately RMB 696.9 million compared to a net loss of RMB 528.6 million in 2022[185] Revenue Breakdown - The company’s external customer revenue for comprehensive medical services was RMB 1,326,280 thousand in 2023, up from RMB 1,049,374 thousand in 2022, marking a growth of approximately 26.38%[80] - Revenue from external customers reached RMB 1,142,951 thousand, an increase from RMB 1,049,374 thousand in the previous year[100] - Hospital management services revenue increased by approximately 6.5% to RMB 86.9 million from RMB 81.6 million in 2022, primarily due to increased income from hospital management and supply chain services[178] - Pharmaceutical sales revenue rose to approximately RMB 11.5 million from RMB 11.1 million in 2022, driven by increased supply income from Jinhua Pharmaceutical[179] - Revenue from the hospital management services segment rose by approximately 26.4% from RMB 1,049.4 million in 2022 to about RMB 1,326.3 million in 2023, primarily due to increased outpatient and inpatient volumes[198] Cost and Expenses - Costs increased by approximately 19.8% from about RMB 992.1 million in 2022 to about RMB 1,188.4 million in 2023, mainly due to higher inventory-related costs[199] - Administrative expenses rose by approximately 35.8% from about RMB 95.2 million in 2022 to about RMB 129.2 million in 2023, driven by increased employee benefits and technology operation costs[200] Asset and Liability Management - Non-current assets decreased slightly to RMB 1,378,847 thousand from RMB 1,433,043 thousand in 2022, indicating a focus on asset management[24] - The total liabilities decreased to RMB 1,906,897 thousand from RMB 1,992,136 thousand in the previous year, reflecting improved financial health[26] - Total assets as of December 31, 2023, amounted to RMB 2,498,100 thousand, slightly up from RMB 2,435,564 thousand in 2022[35] - Cash and cash equivalents increased to RMB 523,027 thousand from RMB 497,061 thousand, indicating improved liquidity[35] - Current assets increased by approximately RMB 106.5 million from about RMB 843.0 million on December 31, 2022, to about RMB 949.5 million on December 31, 2023[192] - Current liabilities decreased by approximately RMB 1,061.3 million from about RMB 1,785.7 million on December 31, 2022, to about RMB 724.4 million on December 31, 2023[192] - The reduction in current liabilities was mainly due to a decrease in convertible bonds due within one year by RMB 1,026.4 million[192] Strategic Focus and Future Plans - The company plans to maintain a focus on capital needs while ensuring appropriate risk levels and liquidity for future growth[18] - The company is focused on expanding its hospital management services and pharmaceutical sales in the Chinese market[39] - The company aims to expand the scale of managed hospitals and improve asset quality, focusing on compliance and operational stability in 2023[130] - The company plans to continue investing in money market funds, which are deemed to be in its best interest based on business and operational needs[190] - Future strategies may include further investments in technology and operational efficiencies to manage rising costs[200] Compliance and Operational Integrity - The company has strengthened its anti-corruption framework and compliance risk management to improve operational integrity[160] - The company is closely monitoring the operational stability and cash flow of Jinhua Guangfu Hospital to ensure compliance with repayment obligations[140] - The company has implemented a unified hospital resource planning (HRP) platform to enhance operational efficiency across its hospital network[161] Hospital Development and Services - The group established a procurement center that organized 43 major procurement projects, including 26 medical device projects and 17 information system projects, collaborating with 55 suppliers[128] - The group has a total of 1,650 approved beds across five hospitals, with over 2 million outpatient visits and more than 90,000 inpatient visits in 2023[124] - The company emphasizes the development of specialty departments as a breakthrough point for high-quality growth in non-public medical institutions[126] - The company is actively participating in national initiatives to enhance medical quality and safety, aligning with the government's healthcare reform goals[94] - The company has successfully assisted hospitals in formulating medium to long-term strategic development plans and implementing management innovations[156]