资料显示，紫元元控股集团有限公司,香港联合交易所上市企业(股票代码:08223.HK),总部坐落于中国深 圳,分别在北京、杭州、武汉、河南、成都、广州、香港等地设有办事处。 6月16日，截至港股收盘，恒生指数上涨0.7%，报24060.99点。紫元元（08223.HK）收报1.7港元/股， 上涨14.09%，成交量179.8万股，成交额295.3万港元，振幅18.12%。 最近一个月来，紫元元累计跌幅5.7%，今年来累计跌幅6.29%，跑输恒生指数19.11%的涨幅。 财务数据显示，截至2024年12月31日，紫元元实现营业总收入5.52亿元，同比增长10.91%；归母净利 润-5297万元，同比减少463.73%；毛利率15.67%，资产负债率49.94%。 机构评级方面，目前暂无机构对该股做出投资评级建议。 行业估值方面，医疗保健设备和服务行业市盈率（TTM）平均值为-22.06倍，行业中值0.39倍。紫元元 市盈率-11.2倍，行业排名第74位；其他京玖康疗（00648.HK）为0.38倍、巨星医疗控股（02393.HK） 为0.4倍、永胜医疗（01612.HK）为4.39倍、环球医疗（02666.HK ...

Impairment and Financial Losses - The company recognized goodwill and intangible asset impairments of approximately RMB 9.9 million and RMB 8.5 million related to the acquisition of Dun Nan Group and Mei Kang Mao respectively[4]. - The estimated recoverable amount of Dun Nan's cash-generating unit was determined to be zero, resulting in a full impairment of RMB 9,885,000 in goodwill and RMB 8,500,000 in trademarks[8]. - Meikangmao's cash-generating unit has been written down to a recoverable amount of RMB 17,600,000, with a goodwill impairment loss of RMB 7,067,000 recognized[19]. - The impairment of finance lease receivables for the year ending December 31, 2024, is approximately RMB 35.6 million, accounting for about 5.9% of total assets[25]. Operational Challenges - The decision to cease operations of Dun Nan Group was made due to continuous operational losses since 2023, with a challenging macroeconomic environment leading to reduced consumer spending and increased competition[7]. - The overall economic environment in China remains challenging, impacting consumer spending and leading to ongoing losses for Meikangmao since its opening[17]. - The industry faces specific pressures, including reduced patient flow and increased competition, leading to cash flow difficulties for many clients[27]. - The macroeconomic environment in China is recovering slower than expected, impacting consumer confidence and increasing credit risk[28]. Future Projections and Strategies - Revenue and net loss forecasts for Dun Nan for the two months ending February 2025 are projected to be RMB 2,292,000 and RMB (3,920,000) respectively[11]. - The company plans to reallocate resources from Dun Nan Group to more sustainable and profitable business segments[7]. - The number of maternity centers is projected to increase by approximately 27% from 2021 to 2024, driven by China's three-child policy[15]. - The market for maternity services is highly competitive, with a compound annual growth rate of about 18% from 2016 to 2023, leading to an estimated 5,800 centers by 2024[17]. - The company believes that the healthcare industry will present growth opportunities post-pandemic, despite the challenges faced by Dun Nan Group[6]. Valuation and Financial Assessment - The company applied a 20.4% liquidity discount based on a study covering 779 private transactions from July 1980 to March 2024, reflecting the average discount rate for illiquid private equity[10]. - The weighted average cost of capital was calculated to be approximately 15%, based on comparable companies' average debt and equity ratios[12]. - The recoverable amount of cash-generating units is calculated based on the net present value of expected future cash flows over a 7-year period[23]. - The after-tax discount rate is approximately 15%, derived from the weighted average cost of capital based on comparable companies[23]. - The only applicable valuation multiple is the price-to-sales ratio, which is adopted as the basis for Meikangmao's equity value[22]. Operational Adjustments and Partnerships - The operational plan for Meikangmao was revised to include a partnership with an experienced operator, resulting in a fundamental change in the original business model[18]. - The company has actively engaged with two well-known maternity service providers to mitigate operational risks and costs[18]. Debt Recovery Efforts - The company has implemented a bad debt recovery policy, utilizing phone collections and legal actions as necessary[29]. - As of March 31, 2025, approximately 43% of overdue financing lease receivables cases have entered litigation or arbitration procedures[30]. - About 50% of these cases (by amount) have received court judgments in favor of the company, while the rest are still pending judgment[30]. - The company has successfully obtained court freezing orders on approximately 20.3% of the relevant financing lease receivables[30]. - The company has successfully recovered about 2.7% of the impairment amount of financing lease receivables as of March 31, 2025[30].

Impairment and Financial Losses - The company recognized goodwill and intangible asset impairments of approximately RMB 9.9 million and RMB 8.5 million related to the acquisition of Dun Nan Group and Mei Kang Mao respectively[4]. - The estimated recoverable amount of Dun Nan's cash-generating unit was determined to be zero, resulting in a full impairment of RMB 9,885,000 in goodwill and RMB 8,500,000 in trademarks[8]. - Meikangmao's cash-generating unit has been written down to a recoverable amount of RMB 17,600,000, with a goodwill impairment loss recognized at RMB 7,067,000[19]. - The impairment of finance lease receivables for the year ending December 31, 2024, is approximately RMB 35.6 million, accounting for about 5.9% of total assets[25]. Operational Challenges - The decision to cease operations of Dun Nan Group was made due to continuous operational losses since 2023, with a challenging macroeconomic environment leading to reduced consumer spending and increased competition[7]. - The market environment remains challenging, with external pressures and intense price competition affecting profitability since the opening of Meikangmao[17]. - New clinics and hospitals established before and after the pandemic are struggling to generate stable revenue, leading to increased defaults on lease payments[27]. - Macroeconomic headwinds in 2024, including weakened consumer confidence and tightened credit conditions, have raised overdue rates and credit risk expectations[28]. Financial Forecasts and Projections - Revenue and net loss forecasts for Dun Nan for the two months ending February 2025 are projected to be RMB 2,292,000 and RMB (3,920,000) respectively[11]. - The company anticipates that the economic benefits of the acquired business will significantly decline under the new operational structure[18]. - Meikangmao recorded a net loss and negative EBITDA for 2024, making it impossible to use P/E and EV multiples for fair value assessment[22]. Resource Allocation and Strategic Plans - The company plans to reallocate resources from Dun Nan Group to more sustainable and profitable business segments[7]. - The operational plan for Meikangmao was revised after the acquisition, leading to a partnership with a third-party operator to mitigate operational risks[18]. Valuation and Financial Assessment - The company applied a 20.4% liquidity discount based on a study covering 779 private transactions from 1980 to 2024, reflecting the average discount rate for illiquid private equity[10]. - The weighted average cost of capital was calculated to be approximately 15%, based on comparable companies' average debt and equity ratios[12]. - The valuation of Meikangmao relies on market approach methods, specifically using comparable listed companies for fair value assessment[21]. - The recoverable amount of cash-generating units is based on the net present value of expected future cash flows over a 7-year period, with a post-tax discount rate of approximately 15%[23]. - The estimated terminal growth rate for cash flows beyond 5 years is 2%, aligned with IMF's inflation forecast for China[23]. Debt Recovery Efforts - The company has implemented a bad debt recovery policy, utilizing phone collections and legal actions for unrecovered debts[29]. - Approximately 43% of overdue financing lease receivables cases have entered litigation or arbitration as of March 31, 2025[30]. - About 50% of these cases (by amount) have received court judgments in favor of the company, while the rest are pending judgment[30]. - The company has successfully obtained court freezing orders on approximately 20.3% of the relevant financing lease receivables[30]. - As of March 31, 2025, the company has successfully recovered about 2.7% of the impaired financing lease receivables[30]. Industry Trends - The acquisition of Dun Nan Group was completed in February 2021, following due diligence on its assets, liabilities, and operations[5]. - The acquisition of Meikangmao is expected to complete in April 2024, with goodwill impairment due to significant changes post-acquisition[15]. - The number of maternity centers is projected to increase by approximately 27% from 2021 to 2024, driven by China's three-child policy[15]. - The compound annual growth rate of maternity centers from 2016 to 2023 is about 18%, with an estimated 5,800 centers nationwide by 2024[17]. - The company believes that the healthcare industry will present growth opportunities post-pandemic, despite the challenges faced by Dun Nan Group[6].

Company Overview - Ziyuan Yuan Holdings Limited (stock code: 08223.HK) is listed on the Hong Kong Stock Exchange and is headquartered in Shenzhen, China. The company has established offices in various cities including Beijing, Hangzhou, Wuhan, Henan, Chengdu, Guangzhou, and Hong Kong [3]. Financial Performance - As of December 31, 2024, Ziyuan Yuan reported total revenue of 552 million yuan, representing a year-on-year growth of 10.91%. However, the net profit attributable to shareholders was a loss of 52.97 million yuan, a significant decrease of 463.73% compared to the previous year. The gross profit margin stood at 15.67%, and the debt-to-asset ratio was 49.94% [2]. Stock Performance - The stock price of Ziyuan Yuan closed at 1.41 HKD per share on May 21, with an increase of 9.3%. The trading volume was 1.764 million shares, with a total turnover of 2.3581 million HKD and a price fluctuation of 15.5%. However, over the past month, the stock has experienced a cumulative decline of 41.36%, and since the beginning of the year, it has dropped by 18.87%, underperforming the Hang Seng Index, which has risen by 18.05% [1][2]. Industry Valuation - Currently, there are no institutional investment ratings for Ziyuan Yuan. The average price-to-earnings (P/E) ratio for the healthcare equipment and services industry is -21.51 times, with a median of 0.31 times. Ziyuan Yuan's P/E ratio is -9.7 times, ranking 75th in the industry. Comparatively, other companies in the sector have P/E ratios such as Giant Medical Holdings (0.23), Jingjiu Health (0.38), Yongsheng Medical (3.87), Global Medical (4.63), and Ruici Medical (5.6) [2][3]. Business Model - Ziyuan Yuan provides comprehensive services to medical institutions, patients, and healthcare enterprises. The company has established brand influence in consumer healthcare sectors such as dental care, medical aesthetics, and maternity centers. It has developed a full industry chain layout that includes medical services, medical device R&D, production and sales, pharmaceutical smart supply chain, and SPD services. The company leverages digital and intelligent technology capabilities to enhance the overall synergy of the industry chain and has been recognized as a high-tech enterprise [3].

Business Operations - The Group is primarily engaged in providing medical equipment finance leasing services, maternal and child postpartum care industry services, and trading of medical equipment and consumables in the PRC[21]. - The healthcare industry is expected to become a new economic breakthrough post-epidemic, with significant potential for value addition, prompting the Group to focus on medical equipment finance leasing and trading[22]. - China's medical equipment industry has maintained a high growth rate, becoming the second largest market globally, supported by national policies and the 14th Five-Year Plan[23]. - The Group's revenue from finance leasing services was RMB 9.2 million during the year, serving approximately 5,000 SMEs across 30 provinces in China[37][41]. - The Group plans to increase investment in research and development to enhance competitiveness in technology and products[30][33]. - By 2027, equipment investment in healthcare is expected to increase by over 25% compared to 2023, as outlined in the "Action Plan for Promoting Large-Scale Equipment Renewal" issued by the State Council[27][29]. - The medical device industry in China is projected to experience significant growth, supported by national policies and increasing health awareness among citizens[25][28]. - The Group's focus on the medical equipment and consumables trading business aligns with national policies aimed at promoting the medical equipment industry[30][36]. - The "Pharmaceutical Industry High-Quality Development Action Plan (2023-2025)" aims to enhance the supply capacity of high-end medical equipment and key technologies[26][29]. Financial Performance - The Group's revenue increased by approximately RMB 54.3 million or approximately 10.9%, from approximately RMB 498.0 million for the prior year to approximately RMB 552.3 million for the current year[82]. - The cost of sales increased from approximately RMB 375.0 million for the prior year to approximately RMB 465.7 million for the current year, driven by higher costs of medical equipment and consumables sold[83]. - Revenue from medical equipment and consumables trading rose from approximately RMB 417.0 million in the prior year to approximately RMB 493.2 million in the current year[85]. - The Group recorded a loss attributable to owners of approximately RMB 53.0 million for the year, compared to a profit of approximately RMB 14.6 million in the prior year[96]. - As of December 31, 2024, bank balances and cash were approximately RMB 13.0 million, down from RMB 108.3 million in the prior year[97]. - The Group's total equity as of December 31, 2024, was approximately RMB 302.1 million, down from RMB 315.3 million in 2023[101]. - The gearing ratio increased to approximately 37.7% in 2024 from 29.6% in 2023, attributed to the expansion of the Group's trading of medical equipment and consumables business[104]. - The Group's finance lease receivables increased to approximately RMB 112.2 million in 2024 from RMB 72.1 million in 2023, which were pledged to secure bank borrowings[112]. Risk Management - The Group recognizes the importance of an effective risk management system to mitigate various risks associated with finance leasing services[39][42]. - The risk management department conducts thorough due diligence on each customer, including on-site interviews and document reviews, to assess their financial standing and repayment ability[43]. - The Group's receivables are 100% secured and guaranteed as of December 31, 2024, compared to 99.5% in 2023[51]. - The approval process for finance leasing transactions involves a multi-level review system to evaluate potential risks and issues associated with each transaction[43]. - Post-drawdown management includes routine inspections and ongoing monitoring of leased assets to identify potential defaults early[45]. - The Group's risk management committee plays a crucial role in evaluating significant business decisions and ensuring compliance with entry criteria for customers[43]. - The Company has established risk management policies and rules to mitigate potential risks associated with its operations[149]. Maternal and Child Postpartum Care - The maternal and child postpartum care industry services recorded a revenue of RMB 24.2 million during the Year, reflecting a decline attributed to adverse macroeconomic conditions and intense price competition among postpartum care centers[54][58]. - The Group acquired a 51% equity interest in Wuhan Desheng Meimei Health Management Co., Ltd. for RMB 3.4 million, which provides postpartum care services in the PRC[55][57]. - Desheng Meimei was guaranteed to achieve a net profit after tax of no less than RMB 1.8 million for the period ending December 31, 2022, and RMB 2.2 million for the year ending December 31, 2023[58][60]. - The actual profit after tax for Desheng Meimei from the completion date to December 31, 2022, was approximately RMB 0.9 million, resulting in a failure to meet the profit guarantee[59][61]. - The Group exercised its right to request the Vendor to repurchase the 51% equity interest in Desheng Meimei due to unmet profit guarantees, leading to a lawsuit against the Vendor[59][61]. - In December 2023, the Shenzhen Nanshan District People's Court ordered the Vendor to repurchase the equity interest in Desheng Meimei, which was settled for RMB 1.3 million in June 2024[59][61]. - The Group also acquired a 54% equity interest in Wuhan Jiaenbei Health Management Co., Ltd. for RMB 3.24 million, which also provides postpartum care services[63][66]. - Jiaenbei was guaranteed to achieve a net profit after tax of no less than RMB 1.0 million for each year from the completion date to December 31, 2023, and for the year ending December 31, 2024[64][66]. - The actual profit after tax for Jiaenbei for the year ended December 31, 2022, was approximately RMB 0.3 million, resulting in a failure to meet the profit guarantee for that year[65]. - The Group entered into a supplemental agreement with Jiaenbei's vendors to revise the profit guarantee for future periods[65]. - Jiaenbei's actual profit after tax for the year ended 31 December 2023 was approximately RMB 0.3 million, resulting in the failure to meet the profit guarantee[68]. - The Group decided not to exercise the option to repurchase the 54% equity interest in Jiaenbei nor to request compensation for the profit guarantee shortfall for the year ended 31 December 2023[68]. - Jiaenbei's profit guarantee was revised, requiring a net profit after tax of no less than RMB 1.0 million for each of the years ending 31 December 2024 and 31 December 2025[68]. - The actual profit after tax for Jiaenbei for the year ended 31 December 2024 was approximately RMB 1.0 million, thus meeting the profit guarantee[69]. - The Group recognized an impairment loss on goodwill of approximately RMB 9.9 million and on trademarks of approximately RMB 8.5 million due to continuous operating losses at Dunnan Group[70]. - The acquisition of Wuhan Meikangmao Health Management Co., Ltd. was completed in April 2024 for a consideration of RMB 40.0 million[74]. - The Meikangmao Postpartum Care Center has been operating at a loss since its opening, leading to an agreement to transfer its site to another postpartum care center for five years[76]. - The Group recognized a goodwill impairment loss of approximately RMB 7.1 million related to the acquisition of Meikangmao[79]. Corporate Governance - The Company adopted and complied with the Corporate Governance Code to ensure proper regulation of business activities and decision-making processes[156]. - The Board is responsible for promoting the success of the Company by providing effective leadership and ensuring transparency and accountability in operations[158]. - The Company has implemented corporate governance practices appropriate for the growth of its business, ensuring compliance with GEM Listing Rules[160]. - The Board reserves decisions for all major matters, including financial information and material transactions, to maintain oversight and accountability[158]. - The Company has independent non-executive directors with extensive experience in finance, accounting, and corporate governance to guide its strategic direction[144][146]. - The Company has a balanced Board composition with two executive Directors, one non-executive Director, and three independent non-executive Directors, ensuring independent judgment[171]. - The Company has arranged appropriate liability insurance coverage for all Directors, which is reviewed regularly by the Board[166]. - The Nomination Committee ensures the Board's composition maintains a balance of skills, experiences, and diversity[171]. - The Board meets at least four times a year to review financial statements, operating performance, and overall strategies, with additional meetings arranged as necessary[198]. - Continuous professional development is mandated for all directors to ensure their contributions remain informed and relevant[190]. - Newly appointed directors receive comprehensive induction training to understand the group's structure, operations, and regulatory obligations[191]. - The Board regularly reviews the delegated functions and responsibilities of management to ensure effective oversight[167]. - Directors are appointed for an initial term of three years, with provisions for re-election and rotation at annual general meetings[186][187]. - The company adheres to the corporate governance code, ensuring a balance of power and authority between the board and management despite the dual role of the Chairman and CEO[184].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 552,267,000, an increase of 10.9% from RMB 497,955,000 in the previous year[3] - The company reported a net loss of RMB 52,176,000 for the year, compared to a profit of RMB 13,864,000 in the previous year[3] - Basic and diluted loss per share was RMB 12.34, compared to earnings of RMB 3.64 per share in the previous year[3] - The reported segment loss before tax for the year was RMB 52,918,000, with financing lease segment showing a loss of RMB 38,805,000[9] - The company reported a basic loss per share of RMB 0.123, compared to a profit per share of RMB 0.036 in the previous year[16] - The company reported a loss attributable to owners of approximately RMB 53.0 million this year, a reversal from a profit of RMB 14.6 million in the same period last year, driven by decreased leasing and service revenues and increased impairment losses[43] Revenue Sources - Revenue from medical device equipment and consumables trading increased to RMB 493,197,000, up 18.2% from RMB 416,998,000 in the previous year[3] - The total reported segment revenue for the year ended December 31, 2024, was RMB 552,267,000, with the trade business contributing RMB 493,197,000, representing approximately 89.3% of total revenue[9] - Revenue from maternal and infant services reached RMB 24.2 million in 2024, a decline attributed to cautious consumer spending and intense price competition among service providers[24] - The group generated revenue of RMB 9.2 million from financing lease services in 2024, reflecting a decrease due to reduced investment in response to adverse macroeconomic conditions[23] Assets and Liabilities - Non-current assets increased to RMB 162,839,000 from RMB 155,592,000 in the previous year, reflecting a growth of 4.0%[4] - Total liabilities decreased to RMB 301,422,000 from RMB 299,874,000, indicating a slight reduction in overall debt levels[5] - The total reported segment assets as of December 31, 2024, amounted to RMB 577,940,000, with financing lease segment assets at RMB 112,506,000[10] - The total reported segment liabilities were RMB 276,970,000, with the trade business segment liabilities at RMB 159,177,000[10] - Total bank borrowings increased to RMB 182.79 million in 2024 from RMB 132.80 million in 2023, with significant growth in secured loans[21] Cash Flow and Financial Position - The company's cash and cash equivalents decreased to RMB 12,958,000 from RMB 108,260,000, a decline of 88.0%[4] - As of December 31, 2024, the company's cash and bank balances were approximately RMB 13.0 million, down from RMB 108.3 million in 2023, with total equity at approximately RMB 302.1 million[44] - The company's debt-to-equity ratio increased to approximately 37.7% from 29.6% in 2023, attributed to the expansion of its medical equipment and consumables trading business[44] Employee and Operational Costs - The company incurred a total employee cost of RMB 26,700,000, down from RMB 41,562,000 in the previous year[14] - Employee costs decreased from RMB 38.7 million in the previous year to approximately RMB 24.9 million in the current year[38] - Other operating expenses decreased from approximately RMB 46.0 million in the previous year to about RMB 37.4 million this year, primarily due to reductions in promotional expenses from RMB 5.1 million to RMB 1.1 million and travel expenses from RMB 3.4 million to RMB 1.0 million[40] - Employee retirement benefits for the year were approximately RMB 3.2 million, compared to RMB 4.7 million in 2023[54] - The group had 125 employees as of December 31, 2024, down from 184 employees in 2023, with total employee costs for the year amounting to RMB 26.7 million, a decrease from RMB 41.6 million in 2023[54] Impairment and Losses - The impairment loss on receivables was RMB 43,789,000, with RMB 35,592,000 attributed to financing lease receivables[13] - The company recorded an additional impairment loss of approximately RMB 43.7 million this year, compared to RMB 6.0 million in 2023, due to an increase in customer overdue rates influenced by adverse macroeconomic conditions[39] - The group recognized goodwill impairment losses of RMB 9.9 million and RMB 8.5 million for 广州盛成敦南企业管理有限公司 and its subsidiaries, respectively, due to ongoing losses and business cessation[30] Strategic Plans and Future Outlook - The company plans to continue expanding its medical device trading and leasing services in China, focusing on enhancing service offerings and market reach[6] - The company plans to continue its market expansion and product development strategies to enhance future performance[9] - The group anticipates significant growth potential in the health industry post-pandemic, aligning with government policies promoting high-quality development in the medical device sector[32] - The company has no significant future plans for major investments or capital assets beyond what has been disclosed[52] Acquisitions and Investments - The group acquired 51% equity in Wuhan Deshengmeimei Health Management Co., Ltd. for RMB 3.4 million, with a profit guarantee of RMB 1.8 million for the first year, which was not met[25][26] - The group reached a settlement in June 2024, resulting in a loss of RMB 1.8 million from the buyback of Deshengmeimei's equity[26] - The group also acquired 54% equity in Wuhan Jiaenbei Health Management Co., Ltd. for RMB 3.24 million, with a profit guarantee of RMB 1.0 million for the first year[27] - The company acquired 100% equity of Wuhan Meikangmao Health Management Co., Ltd. for RMB 40.0 million, with the acquisition completed in April 2024[50] Corporate Governance and Compliance - The company has complied with the corporate governance code as per GEM listing rules, except for a minor deviation[58] - All independent non-executive directors have confirmed their independence in accordance with GEM listing rules[64] - The annual results announcement and annual report will be published on the Stock Exchange and the company's website[66] Dividends and Shareholder Matters - The company does not have a fixed dividend policy, and any proposed dividends are subject to board approval and shareholder consent[60] - The board does not recommend the payment of a final dividend for the year ending December 31, 2024, consistent with the previous year[61] - The company entered into a convertible bond placement agreement on February 14, 2025, agreeing to issue bonds with a total principal amount of up to HKD 100 million[59]

Company Overview - Ziyuanyuan Holdings Group Limited is incorporated in the Cayman Islands and listed on the GEM of the Hong Kong Stock Exchange[1]. - The company operates primarily in China and Hong Kong, with significant business locations in Shenzhen and Kowloon[8]. - The board of directors includes Mr. Zhang Junshen as Chairman and CEO, and Mr. Tian Zhiwei as an executive director[7]. - The company has a range of principal banks including Guangdong Huaxing Bank and Agricultural Bank of China, indicating strong financial partnerships[8]. - The company operates primarily in the PRC, with all revenue and major non-current assets attributable to this region[20]. Financial Performance - Total revenue for the six months ended June 30, 2024, was RMB 187,326,000, an increase of 6.7% compared to RMB 175,623,000 in 2023[10]. - Income from trading of medical equipment and consumables rose to RMB 160,410,000, up 8.4% from RMB 147,171,000 in the previous year[10]. - Profit before income tax for the period was RMB 8,424,000, compared to RMB 7,336,000 in 2023, reflecting a year-over-year increase of 14.9%[10]. - The company reported a profit and total comprehensive income for the period of RMB 6,183,000, up from RMB 5,764,000 in the same period last year, indicating a growth of 7.3%[10]. - Earnings per share for the period attributable to owners of the company was 1.41 RMB cents, a decrease from 1.53 RMB cents in 2023[10]. Assets and Liabilities - Net current assets increased to RMB 284,716,000 as of June 30, 2024, compared to RMB 199,640,000 at the end of 2023, representing a growth of 42.6%[11]. - Non-current assets totaled RMB 181,582,000 as of June 30, 2024, compared to RMB 155,592,000 at the end of 2023, marking an increase of 16.7%[11]. - The company’s total equity increased to RMB 361,472,000 as of June 30, 2024, up from RMB 315,289,000 at the end of 2023, reflecting a growth of 14.6%[12]. - The Group's trade receivables as of June 30, 2024, were RMB 186,789,000, down from RMB 206,411,000 as of December 31, 2023, indicating a decrease of approximately 9.49%[42]. - The total past due finance lease receivables amounted to RMB 6,049,000 as of June 30, 2024, down from RMB 14,144,000 as of December 31, 2023, indicating a significant improvement in collection[41]. Cash Flow and Financing - The company reported a net cash used in operating activities of RMB (111,337,000) for the first half of 2024, a significant decrease from RMB 21,481,000 generated in the same period of 2023[14]. - Cash and cash equivalents at June 30, 2024, totaled RMB 24,413,000, slightly up from RMB 24,275,000 at the same date in 2023[14]. - The company issued new shares, raising a total of RMB 40,000,000 during the period[13]. - As of June 30, 2024, total bank borrowings amounted to RMB 158,602,000, an increase of 96.5% from RMB 81,389,000 as of December 31, 2023[56]. - The Group's bank borrowings guaranteed by Mr. Zhang and Ms. Tang included RMB 7,100,000 and RMB 30,000,000, with the latter being newly guaranteed as of June 30, 2024[57]. Operational Highlights - The Group completed the acquisition of Wuhan Meikangmao Health Management Co., Ltd. in April 2024 for a consideration of RMB 40.0 million, enhancing its postpartum care service offerings in China[63]. - The Group is focusing on expanding its services in the maternal and child postpartum care industry, which includes health care, dietary nutrition, recovery, and intellectual development for newborns[73]. - Revenue from maternal and child postpartum care services was RMB 11.9 million, impacted by weak market sentiment and a declining birth rate in China[77]. - The Group provided finance leasing services to approximately 4,900 SMEs across 30 provinces in China as of June 30, 2024[72]. Corporate Governance - The company has a dedicated audit committee to oversee financial reporting and compliance[7]. - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the six months ended 30 June 2024, confirming compliance with applicable accounting standards and adequate disclosures[125]. - The Company maintains high standards of corporate governance, complying with the Corporate Governance Code except for a deviation from code provision C.2.1[117]. - The roles of chairman and chief executive officer are held by Mr. Zhang Junshen, which the Board believes does not impair the balance of power[118]. Shareholding Structure - Directors Mr. Zhang Junshen and Mr. Zhang Junwei each held 300,000,000 shares, representing approximately 69.77% of the shareholding[104]. - The ultimate controlling shareholders, Mr. Zhang Junshen and Mr. Zhang Junwei, are deemed to be interested in 69.77% of the issued share capital of the Company[105]. - The Company has confirmed that none of the Directors or controlling shareholders have interests in any competing business during the period[111]. Risks and Challenges - The company emphasizes the potential risks associated with investing in GEM-listed companies, highlighting market volatility[3]. - The Group anticipates that the healthcare industry will become a new economic breakthrough with significant value-added potential post-pandemic[79]. - The Group plans to continue increasing investment in various businesses to find opportunities despite the grim global economic situation in 2024[79].

Financial Performance - Total revenue for the six months ended June 30, 2024, was RMB 187,326,000, an increase of 6.8% compared to RMB 175,623,000 for the same period in 2023[3] - Revenue from medical devices and consumables trading was RMB 160,410,000, up 9% from RMB 147,171,000 year-on-year[3] - The company reported a net profit of RMB 6,183,000 for the period, compared to RMB 5,764,000 in the previous year, reflecting a growth of 7.3%[3] - Basic and diluted earnings per share for the period were RMB 1.41, a decrease from RMB 1.53 in the prior period[3] - Total revenue from customer contracts reached RMB 180,343 thousand in the first half of 2024, compared to RMB 162,742 thousand in 2023, marking an increase of 10.8%[9] - The net profit for the first half of 2024 was RMB 6,042 thousand, slightly down from RMB 6,115 thousand in 2023, a decrease of 1.2%[17] - The company reported RMB 5,681 thousand in guarantees as of June 30, 2024, slightly down from RMB 6,934 thousand as of December 31, 2023[21] - The company recorded revenue of approximately RMB 187.3 million, an increase of about RMB 11.7 million or 6.7% from the previous period's RMB 175.6 million[37] Asset and Liability Management - Non-current assets increased to RMB 181,582,000 as of June 30, 2024, compared to RMB 155,592,000 as of December 31, 2023, representing a growth of 16.7%[4] - The company’s cash and cash equivalents stood at RMB 474,335,000, up from RMB 459,571,000 at the end of 2023, indicating a slight increase of 3.3%[4] - Total liabilities decreased to RMB 104,826,000 from RMB 259,931,000, showing a significant reduction of 59.7%[5] - Trade receivables stood at RMB 186,789 thousand as of June 30, 2024, down from RMB 206,411 thousand in December 2023, a decrease of 9.5%[19] - The expected credit loss provision for financing lease receivables increased to RMB 27,330 thousand in June 2024, up from RMB 24,470 thousand in December 2023, an increase of 11.5%[18] - The company's trade payables decreased to RMB 25,937 thousand as of June 30, 2024, from RMB 59,611 thousand as of December 31, 2023, reflecting a decrease of approximately 56.5%[27] - The company's bank borrowings due within one year increased to RMB 82,100 thousand as of June 30, 2024, from RMB 53,789 thousand as of December 31, 2023, representing an increase of approximately 52.5%[26] Operational Highlights - The company plans to expand its product offerings in the medical device sector and enhance its technology services[3] - The company is exploring potential mergers and acquisitions to strengthen its market position and drive future growth[3] - Monthly service revenue decreased to RMB 11,924 thousand in the first half of 2024, down from RMB 15,571 thousand in 2023, a decline of 23.4%[9] - Financing lease income decreased to RMB 6,983 thousand in the first half of 2024, down from RMB 12,875 thousand in 2023, a decline of 45.8%[9] - Revenue from the financing leasing services decreased to RMB 7.0 million during the period, attributed to a decline in business volume and funding needs from potential clients[33] - Revenue from the maternal and infant service industry recorded RMB 11.9 million, impacted by a weak market atmosphere and declining birth rates in China[34] Employee and Cost Management - The total employee costs amounted to RMB 15,014 thousand in the first half of 2024, down from RMB 21,981 thousand in 2023, a reduction of 31.2%[14] - Employee costs decreased from approximately RMB 20.7 million to about RMB 13.7 million[39] - The total employee cost for the period was approximately RMB 13.7 million, down from RMB 20.7 million in the previous period, with a reduction in the number of employees from 258 to 161[54] Corporate Governance and Compliance - The group has maintained its accounting policies consistent with those used in the previous financial year, ensuring stability in financial reporting[7] - The audit committee reviewed the unaudited consolidated financial statements for the six months ended June 30, 2024, confirming compliance with applicable accounting standards and regulations[62] - The group has maintained compliance with the corporate governance code, with no significant deviations reported[58] - There are no major events affecting the group that occurred after June 30, 2024, up to the date of this announcement[60] Capital and Investment Activities - The company plans to issue up to 86,000,000 shares at a subscription price of HKD 1.00 per share, pending the fulfillment of conditions in the underwriting agreement[31] - The company issued 30 million subscription shares at HKD 1.47 per share, raising approximately HKD 43.5 million for working capital to develop its medical device and consumable trading business[47] - The group's capital commitments for the acquisition of subsidiaries and procurement of computer software amounted to RMB 5.3 million, a decrease from RMB 18.8 million as of December 31, 2023[49] - The group completed the acquisition of Wuhan Meikangmao Health Management Co., Ltd. for RMB 40.0 million on April 2024, which provides maternity services in China[51] - The group did not engage in any significant investments, acquisitions, or disposals of subsidiaries during the period, aside from the aforementioned acquisition[51] Other Financial Metrics - The company recorded a fair value gain of RMB 3 thousand on financial assets measured at fair value through profit or loss in the first half of 2024, compared to RMB 4 thousand in 2023[10] - Impairment losses recognized during the period amounted to approximately RMB 1.9 million, compared to RMB 1.7 million in the previous period[40] - Other operating expenses decreased from approximately RMB 21.0 million to about RMB 17.8 million, primarily due to reduced sales and marketing expenses[41] - Financing costs decreased from approximately RMB 7.6 million to about RMB 5.2 million, mainly due to lower interest from bank and other borrowings[42] - As of June 30, 2024, the company's cash and bank balances were approximately RMB 24.1 million, down from RMB 108.3 million as of December 31, 2023[45] - The debt-to-equity ratio increased to approximately 33.2% from 29.6% due to increased bank borrowings for business expansion[45] - The group has not conducted any buybacks, sales, or redemptions of its listed securities during the period[57] - There were no significant contingent liabilities reported as of June 30, 2024[53]

Financing and Investment - The Group's financing leasing services have expanded nationwide, focusing on optimizing industrial structure and resource integration to achieve economic and social benefits[44]. - The Group anticipates that the post-pandemic health industry will become a significant growth point, with plans to focus on medical equipment leasing and trading, diversifying revenue streams[44]. - The Group has adjusted internal return rates to improve asset quality and minimize risks due to increased overdue rates among clients caused by the pandemic[44]. - By 2027, the scale of equipment investment in various industries in China is expected to increase by more than 25% compared to 2023, as outlined in the "Action Plan for Promoting Large-Scale Equipment Renewal and Consumer Goods Replacement" issued by the State Council of China[57]. - The Group's net amount of receivables arising from finance leasing services as of December 31, 2023, was RMB 131,469,000, a decrease from RMB 201,169,000 as of December 31, 2022[68]. - The Group's secured and guaranteed receivables accounted for 99.5% of the total receivables in finance leasing services as of December 31, 2023[68]. - The Group recorded a revenue of RMB 25.1 million from finance leasing services, serving approximately 4,800 SMEs across 30 provinces in China as of December 31, 2023[87][88]. - The Group's finance leasing services include direct finance leasing and sale-leaseback options, enhancing operational expertise in the medical equipment industry[87][88]. - The Group's finance lease receivables and loan receivables were approximately RMB 72.1 million as of December 31, 2023, down from RMB 143.5 million in 2022[145]. Risk Management - The Group's commitment to risk management is central to its strategy in response to the pandemic's effects on client performance[44]. - The Group has developed a risk management system tailored to its business operations, focusing on comprehensive due diligence and multi-level approval processes to mitigate various risks[63]. - The Group's risk management committee evaluates finance leasing transactions through a detailed assessment process, ensuring that customer entry criteria are met before approval[65]. - The Group's management assessed expected credit losses based on trade receivables and other financial instruments, reflecting a proactive approach to credit risk management[113]. - Impairment losses under the expected credit loss model were approximately RMB6.0 million this year, down from approximately RMB9.2 million in the previous year[140]. - An additional impairment loss of approximately RMB6.0 million was recognized due to the impact of COVID-19, affecting the customers' past due ratio[111]. Corporate Governance and Board Activities - The Board convened six full Board meetings during the year to review financial and operational performance and approve overall strategies[33]. - The Group's corporate governance practices include well-documented board meeting minutes and resolutions[151]. - The Board held six meetings during the year, with all directors attending[146]. - The Remuneration Committee reviewed the remuneration packages for directors and senior management, considering business performance and market conditions[155]. - The Nomination Committee will continue to monitor diversity aspects in board appointments and recommend actions as necessary[152]. - The Group's commitment to equal opportunities includes a non-discrimination policy based on various factors such as gender and nationality[152]. Financial Performance - The Group's revenue increased by approximately RMB173.4 million or approximately 53.4%, from approximately RMB324.6 million for the year ended 31 December 2022 to approximately RMB498.0 million for the Year[133]. - Revenue from trading of medical equipment and consumables increased from approximately RMB236.5 million for the Prior Year to approximately RMB417.0 million for the Year[133]. - Operating lease income increased from RMB nil for the Prior Year to approximately RMB0.8 million for the Year[133]. - Income from IT services increased from RMB nil for the Prior Year to approximately RMB26.6 million for the Year[133]. - The cost of medical equipment and consumables sold increased from approximately RMB185.6 million for the Prior Year to approximately RMB375.0 million for the Year[134]. - Profit attributable to owners of the Company decreased to approximately RMB14.6 million this year from RMB15.8 million in the previous year[142]. - As of December 31, 2023, bank balances and cash were approximately RMB108.3 million, up from RMB13.7 million in 2022[144]. - The Group's working capital was approximately RMB199.6 million as of December 31, 2023, down from RMB233.7 million in 2022[144]. - The gearing ratio decreased to approximately 29.6% as of December 31, 2023, from 42.4% in 2022[144]. Employee and Social Responsibility - As of December 31, 2023, the Group had 184 employees, a decrease from 281 employees in 2022[200]. - Total staff cost for the year was approximately RMB41.6 million, down from RMB45.8 million in 2022[200]. - Employee retirement benefit expense for the year was approximately RMB4.7 million, compared to RMB6.0 million in 2022[200]. - The Group participates in various employee social security plans administered by local government[200]. - Remuneration policy rewards employees and Directors based on individual performance and Group performance[200]. - Performance bonuses are offered to qualified employees based on individual and Group performance[200]. - The Group did not experience any material labor disputes during the year[200]. Strategic Initiatives and Future Outlook - The Group is focused on enhancing its services in the maternal and child postpartum care industry through digitization and intelligence, aiming to build a comprehensive mother and baby ecosystem[58]. - The Group entered into an investment agreement to acquire a 51% equity interest in Wuhan Desheng Meimei Health Management Co., Ltd. for RMB 3.4 million, expanding its footprint in postpartum care services[70]. - The Group aims to consolidate its services in the maternal and child postpartum care industry, leveraging modern medicine to enhance service quality and customer experience[58]. - New product development initiatives are underway, focusing on enhancing the maternal and child postpartum care business, which is expected to contribute an additional $10 million in revenue[186]. - The company is exploring market expansion opportunities in Southeast Asia, aiming to increase its market share by 10% in the region[186]. - A strategic acquisition is planned to enhance the company's supply chain capabilities, with an estimated investment of $5 million[186]. - The company has set a future outlook with a revenue target of $180 million for the next fiscal year, indicating a growth of 20%[178].

Revenue and Profit - Total revenue for 2023 reached RMB 497,955 thousand, with the trade business contributing RMB 416,998 thousand, accounting for the largest share[8] - The company's net profit attributable to equity holders was RMB 312,447 thousand in 2023, compared to RMB 306,861 thousand in 2022[6] - The company's trade business revenue grew significantly to RMB 416,998 thousand in 2023 from RMB 236,539 thousand in 2022, representing a 76.2% increase[25] - Total revenue increased to RMB 497.955 million in 2023, up from RMB 324.598 million in 2022, driven by growth in medical equipment and consumables trade revenue, which rose to RMB 416.998 million from RMB 236.539 million[82] - Revenue increased by approximately RMB 173.4 million or 53.4%, from RMB 324.6 million in the previous year to RMB 498.0 million in the current year, primarily driven by growth in medical equipment and consumables trade revenue, which rose from RMB 236.5 million to RMB 417.0 million[120] - Medical device and consumables trade business revenue reached RMB 417.0 million for the year[128] - Net profit attributable to the company's owners decreased to RMB 14.563 million in 2023, compared to RMB 15.813 million in 2022[82] - The company's profit attributable to owners for the year was approximately RMB 14.6 million, a decrease from RMB 15.8 million in the previous year[139] Assets and Liabilities - Total assets minus current liabilities increased to RMB 406,509 thousand in 2023 from RMB 355,232 thousand in 2022[3] - The company's total liabilities stood at RMB 299,874 thousand as of December 31, 2023[15] - The company's total assets stood at RMB 615,163 thousand, while total liabilities were RMB 291,460 thousand, reflecting a strong balance sheet position[48][71] - The company's total assets stood at RMB 602.277 million, with cash and bank balances increasing significantly to RMB 108.260 million in 2023 from RMB 13.707 million in 2022[83][94] - The company's total assets across reportable segments amounted to RMB 579.269 million, with the largest segment contributing RMB 349.699 million[124] - Net current assets decreased to RMB 199,640 thousand from RMB 233,689 thousand[188] - Non-current liabilities decreased to RMB 39,943 thousand from RMB 95,692 thousand, with bank and other borrowings dropping to RMB 31,754 thousand from RMB 80,981 thousand[189] - Net asset value increased to RMB 315,289 thousand from RMB 310,817 thousand[189] - Reserves increased to RMB 278,608 thousand from RMB 273,022 thousand[189] - Total equity increased to RMB 315,289 thousand from RMB 310,817 thousand[189] Trade and Receivables - The company's trade receivables aged 1-30 days increased to RMB 162,587 thousand in 2023 from RMB 95,482 thousand in 2022[39] - The company's trade receivables increased from RMB 137,955 thousand in 2022 to RMB 206,411 thousand in 2023, with a corresponding increase in impairment loss provisions from RMB 5,520 thousand to RMB 9,424 thousand[58] - Trade receivables increased to RMB 196.987 million in 2023, up from RMB 132.435 million in 2022, reflecting growth in business activities[83] Maternity Services - The company's maternity services revenue decreased to RMB 28,438 thousand in 2023 from RMB 50,809 thousand in 2022, a 44% decline[25] - Revenue from maternity services decreased to RMB 28.438 million in 2023, down from RMB 50.809 million in 2022, primarily due to pandemic-related restrictions and the closure of 3 maternity centers[82] - The company recorded a segment loss of RMB 5.9 million in the maternity services sector, attributed to operational disruptions and center closures[73] - The company acquired a 51% equity stake in Wuhan Desheng Meimei Health Management Co., Ltd. for RMB 3.4 million, expanding its maternity services portfolio[73] - The maternity services sector is expected to benefit from China's three-child policy, with over 90% of consumers recognizing the professionalism of maternity centers[99] - The company plans to enhance its maternity services through digitalization and intelligent upgrades, aiming to build a comprehensive maternal and infant ecosystem[99] Financing and Leases - The company's bank and other borrowings decreased to RMB 101,047 thousand in 2023 from RMB 147,861 thousand in 2022[17] - The company's financing lease receivables decreased from RMB 201,072 thousand in 2022 to RMB 131,469 thousand in 2023, reflecting a significant reduction in lease obligations[44] - The company provided financing lease services to approximately 4,800 SME clients across 30 provinces, cities, and autonomous regions in China, generating revenue of RMB 25.1 million in 2023[53] - Total bank and other borrowings decreased from RMB 228,842 thousand in 2022 to RMB 132,801 thousand in 2023, indicating a reduction in debt[52] - The company's financing costs for 2023 included RMB 12,447 thousand in bank and other borrowing interest, and RMB 1,400 thousand in lease liability interest[56] - The company's lease liabilities were recorded at RMB 3.453 million[127] - Total financing lease receivables and loan receivables were approximately RMB 72.1 million as of December 31, 2023 (2022: RMB 143.5 million)[131] - Bank and other borrowings due within one year decreased to approximately RMB 101.0 million (2022: RMB 147.9 million), and borrowings due after one year decreased to approximately RMB 31.8 million (2022: RMB 80.9 million)[151] - The asset-liability ratio decreased to approximately 29.6% (2022: 42.4%), mainly due to reduced demand for bank and other borrowings as a result of the decrease in the group's finance lease business[164] Costs and Expenses - The company's R&D costs recognized as expenses were RMB 3,091 thousand in 2023, down from RMB 4,080 thousand in 2022[9] - The company's short-term lease expenses decreased to RMB 1,061 thousand in 2023 from RMB 5,486 thousand in 2022[9] - Sales cost for medical equipment and consumables trade increased from RMB 185.6 million in the previous year to RMB 375.0 million in the current year[109] - The company's employee costs decreased from RMB 42.0 million in the previous year to RMB 38.7 million in the current year[121] - The total employee cost for the year was approximately RMB 41.6 million (2022: RMB 45.8 million), with employee retirement benefit expenses of approximately RMB 4.7 million (2022: RMB 6.0 million)[167] - Other operating expenses decreased from approximately RMB 55.4 million in the previous year to approximately RMB 46.0 million this year, mainly due to reductions in miscellaneous expenses for the maternal and infant business, short-term lease payments, and depreciation of right-of-use assets[149] Investments and Acquisitions - The company acquired a 51% equity stake in Wuhan Desheng Meimei Health Management Co., Ltd. for RMB 3.4 million, expanding its maternity services portfolio[73] - The company entered into a share transfer agreement to acquire Wuhan Meikangmao Health Management Co., Ltd. for RMB 40.0 million, though the transaction has not yet been completed as of December 31, 2023[143] - The group did not engage in any significant acquisitions or disposals of subsidiaries or associates during the year[154] Dividends and Share Capital - The company declared a final dividend of 2.5 HK cents per share for the year, consistent with the previous year's dividend[87] - No final dividend is recommended for the year ended December 31, 2023 (2022: 2.5 HK cents)[173] - The company's issued share capital was HKD 40,000,000 with 400,000,000 ordinary shares issued as of December 31, 2023[141] - The group's capital structure remains unchanged since its listing on the GEM of the Hong Kong Stock Exchange on July 9, 2018, with only ordinary shares in its share capital[165] Impairment and Losses - The company recorded a goodwill impairment loss of RMB 1.2 million due to the underperformance of one of its subsidiaries, Guangzhou Shengcheng Dunnan Enterprise Management Co., Ltd., and the closure of one of its maternity centers[117] - Additional impairment loss of approximately RMB 6.0 million was recognized this year (2022: RMB 9.2 million), primarily due to increased customer delinquency rates caused by the COVID-19 pandemic[149] Other Financial Information - The company's deferred tax liabilities amounted to RMB 4,041 thousand, indicating future tax obligations[47] - The company's profit before tax for 2023 was RMB 18,001 thousand, with a fair value loss on investment properties of RMB 600 thousand[64] - The company's cash and bank balances were reported at RMB 67 thousand, showing a minimal liquidity position[65] - The company's other income from sources outside its core operations was RMB 25,900 thousand in 2023, down from RMB 37,250 thousand in 2022[70] - The company's deferred tax assets amounted to RMB 9.52 million[126] - The company's other financial assets were valued at RMB 847 thousand[104] - The company's prepayments, deposits, and other receivables amounted to RMB 1.262 million[112] - Capital commitments for subsidiary acquisitions and computer software purchases amounted to RMB 18.8 million as of December 31, 2023 (2022: RMB 13.5 million)[130] - The company completed a share subscription of 30,000,000 shares at HKD 1.47 per share, raising net proceeds of approximately HKD 43.5 million for general working capital and business development[134] - Bank balances and cash stood at approximately RMB 108.3 million as of December 31, 2023 (2022: RMB 13.7 million)[139] - The group's non-current assets include property, plant, and equipment valued at RMB 7,232 million (2022: RMB 9,786 million) and investment properties valued at RMB 24,400 million (2022: RMB 25,000 million)[187] - Investment properties valued at RMB 25,000 thousand[196] - Financing costs amounted to RMB (13,872) thousand[192] Corporate Governance and Meetings - The company will hold its Annual General Meeting on May 31, 2024, with share transfer registration suspended from May 28 to May 31, 2024[197] - The annual results announcement is available on the HKEX website and the company's website, with the annual report to be distributed to shareholders and published online in due course[198] Workforce - The group had 184 employees as of December 31, 2023 (2022: 281 employees), reflecting a reduction in workforce[167]