Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 501.5 million, a decrease of 6.7% compared to RMB 537.7 million in 2023[4]. - Gross profit for the same period was RMB 147.5 million, down from RMB 164.6 million, resulting in a gross margin of 29.4%, a decline of 1.2 percentage points year-over-year[3]. - Net loss for the year improved to RMB 83.8 million, a 45.9% reduction from RMB 154.9 million in 2023[4]. - Adjusted net loss for the year was RMB 75.3 million, narrowing the loss by 34.8% year-on-year[13]. - Other income increased by 287.4% from RMB 4.2 million for the year ending December 31, 2023, to RMB 16.1 million for the year ending December 31, 2024, mainly due to increased investment income and government subsidies[48]. - The net loss for the reporting period decreased by 45.9% from RMB 154.9 million for the year ending December 31, 2023, to RMB 83.8 million for the year ending December 31, 2024[54]. - The company reported a significant increase in other income to RMB 16,100 thousand in 2024 from RMB 4,156 thousand in 2023, marking a growth of 287.5%[93]. - The total income tax expense for 2024 was RMB (82,000), compared to RMB 7,256,000 in 2023, indicating a significant reduction in tax liabilities[138]. Business Segments and Services - The company established three major business segments: medical services, nursing services, and health management services, enhancing its competitive business structure[8]. - Nursing service revenue increased by 77.7% year-on-year[13]. - Medical services revenue decreased by 3.1% from RMB 223.7 million in 2023 to RMB 216.7 million in 2024, attributed to a weak economic environment and increased market competition[22]. - Nursing services revenue increased by 77.7% from RMB 31.6 million in 2023 to RMB 56.2 million in 2024, driven by effective market promotion and operational efficiency improvements through digitalization and AI[22]. - Health management services revenue decreased by 19.0% from RMB 282.4 million in 2023 to RMB 228.7 million in 2024, due to intensified market competition and reduced corporate spending on employee health management[22]. - The company is focused on the "home-based medical and nursing services" strategy, aiming to meet the growing demand driven by an aging population and health consumption upgrades[5]. - The company continues to enhance its home nursing services, leveraging a comprehensive operational service system developed through years of practice[28]. - The company has expanded its home nursing service offerings to over 200 items, up from 90 items in the same period last year[13]. User Growth and Engagement - The number of medical institutions connected to the company's platform exceeded 36,000, with the number of registered doctors increasing by 9.3% and registered nurses rising by 89.2% year-over-year[6]. - Internet medical service volume grew by 20.8% year-over-year, while home nursing service volume surged by 114.9%[8]. - Internet medical service users exceeded 4.94 million, a year-on-year increase of 20%[19]. - Home nursing service users increased to over 332,000, a year-on-year increase of 114%[19]. - The number of registered doctors reached over 140,000, a year-on-year increase of 9%[13]. - The number of registered nurses with over 5 years of clinical experience reached 130,000, a year-on-year increase of 89%[13]. Operational Efficiency and Technology - The company aims to leverage AI and smart technology to improve operational efficiency and service precision, positioning itself as an industry innovator[8]. - The company is focusing on integrating AI technology into healthcare services, enhancing operational efficiency and user satisfaction[23]. - The company plans to use 25% of the net proceeds, amounting to HKD 138.6 million, to enhance its product offerings across the industry value chain[86]. - The company aims to leverage AI technology to enhance service efficiency and user experience, with AI-driven features such as intelligent recommendations and customer service already implemented[30]. - The company expects to utilize part of the proceeds from its global offering to meet its working capital needs[64]. Financial Position and Cash Flow - Operating net cash flow turned positive for the first time, with a net inflow of RMB 21.6 million[13]. - Cash and cash equivalents increased to RMB 760.9 million as of December 31, 2024, compared to RMB 676.8 million as of December 31, 2023[64]. - The company reported a net cash inflow from operating activities of RMB 21.6 million for the year ended December 31, 2024, compared to a net cash outflow of RMB 20.2 million for the previous year[66]. - The company had no significant contingent liabilities or major legal proceedings that could adversely affect its financial condition as of December 31, 2024[58]. - The company’s total borrowings amounted to RMB 509.9 million as of December 31, 2024, slightly up from RMB 509.4 million as of December 31, 2023[70]. Strategic Initiatives and Future Outlook - The company anticipates 2025 to be a strategic breakthrough year, emphasizing user needs and technological innovation to enhance brand value and market influence[10]. - Strategic partnerships with various provincial and municipal governments were formed to enhance the "Internet + Nursing Services" platform, improving resource utilization and service accessibility[9]. - The strategic focus includes expanding the urban cloud hospital model and enhancing home medical care services to ensure compliance, safety, and reliability[34]. - The company has implemented a "business focus strategy" to deepen market penetration and expand service types[23]. - The company is expanding its service offerings and optimizing business strategies to meet diverse user needs, thereby improving resource and service commercialization[23]. Employee and Organizational Structure - As of December 31, 2024, the company has a total of 855 full-time employees, with 41.0% in health management, 24.9% in sales and marketing, and 17.8% in R&D[80]. - The company has established a competitive and fair compensation policy, with total employee compensation expenses of RMB 166.1 million for the year ending December 31, 2024[80]. - Employee benefits expenses totaled RMB 174,640,000 in 2024, down from RMB 223,314,000 in 2023, reflecting a decrease of about 22%[129]. Compliance and Reporting - The financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards and presented in Renminbi, with all values rounded to the nearest thousand[100]. - The consolidated financial statements include the company and its subsidiaries for the year ending December 31, 2024, with control established through variable returns and power over the investee[101]. - The group has adopted revised Hong Kong Financial Reporting Standards for the current financial year, with no significant impact on financial position or performance[104].

2024 中期報告 熙康雲醫院控股有限公司 XIKANG CLOUD HOSPITAL HOLDINGS INC. （於開曼群島註冊成立的有限公司） 股份代號 : 9686 目錄 頁次 2 公司資料 4 財務摘要 5 管理層討論與分析 18 其他資料 33 中期財務資料審閱報告 34 中期簡明綜合全面虧損表 35 中期簡明綜合資產負債表 37 中期簡明綜合權益變動表 38 中期簡明綜合現金流量表 39 中期簡明綜合財務資料附註 81 釋義 公司資料 | --- | --- | |----------------------------------------------------------------------------------|-----------------------------------------------| | | | | 董事會 | 授權代表 | | 董事長及非執行董事 | 宗文紅女士 | | 劉積仁博士 | 黃偉超先生 | | 執行董事 | 註冊辦事處 | | 宗文紅女士 （首席執行官） | PO Box 309 | | 非執行董事 | Ugland House | | 徐洪 ...

Financial Performance - Total revenue for the six months ended June 30, 2024, was RMB 179.2 million, a decrease of 18.1% compared to RMB 218.9 million for the same period in 2023[2] - Gross profit for the same period was RMB 42.6 million, down from RMB 67.3 million, resulting in a gross margin of 23.7%, a decline of 7.0 percentage points from 30.7%[1] - Net loss for the period improved to RMB 60.5 million, a reduction of 36.3% from RMB 95.0 million in the prior year[2] - The adjusted net loss for the period, excluding share-based compensation and interest expenses, was RMB 51.3 million, compared to RMB 80.3 million in the previous year[1] - Total customer contract revenue decreased by 18.1% to RMB 179.2 million for the six months ended June 30, 2024, compared to RMB 218.9 million for the same period in 2023[16] - Medical services revenue decreased by 21.9% to RMB 87.6 million from RMB 112.1 million in the same period of 2023[11] - Health management services revenue decreased by 30.0% to RMB 67.1 million from RMB 95.8 million in the same period of 2023[8] - Nursing services revenue increased by 123.2% to RMB 24.5 million from RMB 11.0 million in the same period of 2023[8] - Operating loss narrowed to RMB 50,157 thousand, compared to a loss of RMB 77,228 thousand in the prior year, indicating a 35% improvement[58] - The total loss attributable to shareholders for the six months ended June 30, 2024, was RMB 59,559,000, a decrease of 37.03% from RMB 94,544,000 in the same period of 2023[85] Service Volume and Growth - The number of medical institutions connected to the urban cloud hospital platform exceeded 36,000, with a year-on-year increase of 4.6%[5] - The number of registered doctors on the platform reached 137,000, reflecting a year-on-year growth of 13.0%[5] - The number of registered nurses with over five years of clinical experience increased by 90.4% to 108,000[5] - Health management service volume was 160,000 visits, a decrease of 5.5% from 170,000 visits in the same period last year[5] - Internet medical service volume exceeded 2.231 million visits, a year-on-year increase of 19.3% compared to 1.871 million visits in the same period of 2023[7] - Home care service volume exceeded 142,000 visits, a year-on-year increase of 217.3% compared to 45,000 visits in the same period of 2023[7] - Nursing consultation service volume exceeded 147,000 visits, a year-on-year increase of 113.1% compared to 69,000 visits in the same period of 2023[7] - Online consultation service reached 1.033 million visits, a year-on-year increase of 36.8% compared to 755,000 visits in the same period of 2023[10] - Electronic prescription service reached 373,000 visits, a year-on-year increase of 11.0% compared to 336,000 visits in the same period of 2023[10] Operational Efficiency and Cost Management - Sales and service costs decreased by 9.9% to RMB 136.7 million for the six months ended June 30, 2024, from RMB 151.6 million in the same period of 2023[20] - Sales and marketing expenses reduced by 21.7% from RMB 47.7 million to RMB 37.3 million, attributed to enhanced production control and improved resource allocation efficiency[22] - R&D expenses decreased by 23.4% from RMB 27.8 million to RMB 21.3 million, mainly due to ongoing optimization of organizational efficiency[23] - Administrative expenses fell by 26.5% from RMB 59.5 million to RMB 43.7 million, also due to improved organizational efficiency[24] - Other income increased significantly by 1,720.0% from RMB 0.7 million to RMB 12.8 million, primarily due to increased government subsidies and investment income[25] - Financing costs net decreased by 67.1% from RMB 16.8 million to RMB 5.5 million, mainly due to increased interest income[27] - Employee compensation and benefits expenses for the six months ended June 30, 2024, amounted to RMB 86.6 million, a decrease of 22.0% from RMB 111.1 million for the same period in 2023[49] Strategic Initiatives and Future Plans - The company has established independent business segments for home care services, highlighting its strategic value[6] - The company is focusing on a "home-based medical care service" strategy, integrating medical, nursing, and health management services for comprehensive user support[9] - The company plans to integrate new digital technologies such as big data and AI into its home nursing services to enhance operational efficiency[15] - The company aims to become the largest urban cloud hospital in China, enhancing service quality and expanding its medical and nursing team[15] - The company has established a comprehensive operational service system for home nursing services, replicating its model across various provinces, covering over 200 million residents[12] - The company plans to use approximately 30% of the net proceeds from its global offering, amounting to about HKD 166.3 million, to expand its urban cloud hospital platform[52] - Approximately 25% of the net proceeds, or HKD 138.6 million, will be allocated to enhance its product offerings across the industry value chain[52] - The company has allocated 25% of the net proceeds, approximately HKD 138.6 million, for R&D in technology infrastructure and data processing capabilities[52] Governance and Compliance - The audit committee has reviewed the interim results for the six months ended June 30, 2024[56] - The board of directors consists of executive and non-executive members, ensuring a diverse governance structure[95] - The company is committed to timely disclosures regarding its financial performance and strategic direction[95] - The chairman, Dr. Liu Jiren, emphasizes the importance of transparency in financial reporting[95] - Future announcements will include detailed performance metrics and strategic initiatives[95] - The board is actively involved in overseeing the company's strategic planning and execution[95] Cash Flow and Financial Position - Cash and cash equivalents amounted to RMB 575.9 million as of June 30, 2024, with no significant external financing plans currently in place[35] - The company experienced a net cash outflow of RMB 104.61 million for the six months ended June 30, 2024, compared to RMB 124.26 million for the same period in 2023[36] - The company holds significant investments in Dalian Xikang Yunsha Health Management Co., Ltd. and Neusoft Management Consulting (Shanghai) Co., Ltd., with respective ownership stakes of 11.83% and 49.00%[41] - As of June 30, 2024, total outstanding borrowings amounted to RMB 509.6 million, with an unused bank financing limit of RMB 0.4 million[40] - The capital debt ratio as of June 30, 2024, was 0.5%, a significant decrease from 17.8% as of December 31, 2023[44] - The company did not engage in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[43] - The company has no significant capital commitments as of June 30, 2024[43] Employee and Workforce Insights - As of June 30, 2024, the company has 853 full-time employees, with 38.9% in health management, 28.2% in sales and marketing, and 15.7% in R&D[47] - 55.0% of employees hold a bachelor's degree or higher, totaling 469 employees[49] - The company has granted a total of 29,465,000 share options to 216 eligible participants, including 4,000,000 options to the CEO, at an exercise price of HKD 1.14[51]

Internet Hospital Platform - As of December 31, 2023, the Ningbo Cloud Hospital platform has integrated 45 internet hospitals, with 16,000 doctors and 11,000 nurses (with over 5 years of clinical experience), serving over 1.5 million internet medical service users and over 50,000 home care users[15] - The Jiangsu Province internet hospital platform has integrated 159 hospitals, with 52,000 doctors, and has provided services to over 780,000 users[15] - Home care service volume exceeded 150,000 visits, representing a 185.9% increase year-over-year, with Zhejiang province accounting for over 120,000 visits, up 295.6% from the previous year[23] - Revenue from the internet medical services segment increased by 14.3% from RMB 137.8 million in 2022 to RMB 157.6 million in 2023, driven by a 279.2% growth in home care services and a 30.3% increase in telemedicine services[47] Financial Performance - Revenue from health management services reached RMB 245.9 million, a 17.6% increase from RMB 209.2 million in the same period last year[28] - Revenue from smart healthcare products decreased by 83.3% to RMB 36.5 million, down from RMB 218.0 million, primarily due to a reduction in project deliveries[30] - Revenue from cloud hospital platform services fell by 20.1% to RMB 97.8 million, down from RMB 122.4 million, attributed to reduced project opportunities in the post-pandemic era[32] - Sales and service costs decreased by 28.1% from RMB 519.0 million in 2022 to RMB 373.1 million in 2023, aligning with a reduction in revenue from smart medical health products and cloud hospital platform services[48] - Income tax expenses rose by 46.5% from RMB 5.0 million in 2022 to RMB 7.3 million in 2023, attributed to an increase in profitable subsidiaries and their earnings scale[51] - The net loss for the reporting period decreased by 36.3% from RMB 243.3 million in 2022 to RMB 154.9 million in 2023[52] - The adjusted net loss (non-HKFRS measure) for the year was RMB 115.4 million, compared to RMB 146.9 million in 2022[54] Capital and Investments - The company raised approximately HKD 554.5 million from the global offering, net of underwriting commissions and other expenses, after listing on the main board of the Stock Exchange on September 28, 2023[12] - The company plans to allocate approximately 25% of net proceeds for enhancing product offerings across the industry value chain[36] - Approximately 30% of net proceeds will be used to expand the cloud hospital platform to increase the medical network and user base[39] - The company has not used any net proceeds from the global offering as of the reporting date[38] Related Party Transactions - For the fiscal year ending December 31, 2023, the transaction cap under the IT cooperation framework agreement is set at RMB 15 million for payments from Neusoft Group to the company and RMB 16 million for payments from the company to Neusoft Group[6] - The actual transaction amounts for the fiscal year ending December 31, 2023, are RMB 4.2 million from Neusoft Group to the company and RMB 7.8 million from the company to Neusoft Group[5] - The company has committed to ensuring that pricing terms with related parties are not less favorable than those offered to independent third parties[4] - The independent non-executive directors confirmed that the related party transactions during the reporting period were conducted in the ordinary course of business and on normal commercial terms[7] - The auditor confirmed that the disclosed related party transactions were approved by the board and complied with the company's pricing policy[8] - The company has renewed the IT cooperation framework agreement with Neusoft Group, effective from January 1, 2024, to December 31, 2024[6] Employee and Governance - The total number of employees is 962, with 38.5% in health management, 31.0% in sales and marketing, and 16.1% in management and administration[81] - The company paid employee compensation and benefits amounting to RMB 193.5 million for the year, a decrease from RMB 223.5 million in 2022[128] - 55.2% of the company's 962 employees hold a bachelor's degree or higher, totaling 531 employees[128] - The company has established a governance framework that is detailed in the corporate governance report section of the annual report[126] - The company has received annual confirmations of independence from all independent non-executive directors[94] Stock Options and Equity Structure - The company has a stock option plan that allows for the issuance of up to 10% of the total shares under the plan to special participants who have made significant contributions[110] - The stock options granted under the plan have a validity period of 10 years from the grant date[116] - The board will review and decide annually on the granting of stock options based on the company's performance[112] - The total number of shares that may be issued upon the exercise of all stock options under the post-IPO plan is capped at approximately 10% of the total issued shares as of the report date, equating to 84,187,680 shares[158] - The company is actively managing its equity structure to support future growth and align with market practices[136] Regulatory and Compliance - The company is subject to the Securities and Futures Ordinance regulations since its listing on September 28, 2023[129] - Foreign investors are restricted from holding more than 70% equity in "medical institutions" established after April 10, 2015, under Chinese law[190] - The company has established a structure for effective control over its medical and information services through contractual arrangements[192] - The exclusive management consulting and business cooperation agreements were signed on May 18, 2021, allowing the foreign-invested enterprise to provide management consulting services[196] - The domestic holding companies agree to pay all total revenues (after deducting costs, expenses, and taxes) as service fees to the foreign-invested enterprise[197]

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 537.7 million, a decrease of 21.8% compared to RMB 687.4 million in 2022[12]. - Gross profit for the same period was RMB 164.6 million, with a gross margin of 30.6%, up 6.1 percentage points from 24.5% in 2022[11][12]. - Net loss for the year was RMB 154.9 million, a reduction of 36.3% from RMB 243.3 million in 2022[12]. - Revenue from the cloud hospital platform services was RMB 978 million, a decrease of 20.1% compared to RMB 1,224 million in the previous year[23]. - Internet medical services revenue reached RMB 157.6 million, an increase of 14.3% from RMB 137.8 million in the previous year[52]. - Health management services generated revenue of RMB 245.9 million, a 17.6% increase from RMB 209.2 million in 2022[55]. - Gross profit decreased by 2.3% to RMB 164.6 million from RMB 168.5 million year-on-year[64]. - Total revenue decreased by 21.8% to RMB 537.7 million in 2023 from RMB 687.4 million in 2022, primarily due to reduced income from cloud hospital platform services and smart healthcare products[87]. - Sales and service costs decreased by 28.1% to RMB 373.1 million in 2023 from RMB 519.0 million in 2022, aligning with the decline in revenue[91]. - Adjusted net loss decreased from RMB 146.9 million in 2022 to RMB 115.4 million in 2023, attributed to optimized business structure and reduced expenses[104]. - The company's net loss for the reporting period decreased by 36.3% from RMB 243.3 million for the year ended December 31, 2022, to RMB 154.9 million for the same period in 2023[127]. Business Expansion and Services - The company expanded its cloud hospital platform services, collaborating with provincial governments in Zhejiang, Jiangsu, and Henan to enhance healthcare service delivery[14][20]. - The "Yujian Nursing at Home" service platform in Henan province has onboarded 54 medical institutions and over 5,600 nurses with more than five years of clinical experience as of December 31, 2023[20]. - The company achieved a significant increase in the number of medical institutions on the "Zheli Nursing" platform, expanding from one city to 11 cities in Zhejiang province within a year, with over 570 institutions now participating[22]. - The company is focusing on optimizing its business structure and resource allocation to improve operational efficiency and service quality[12]. - The company is enhancing its supply chain system for pharmaceuticals, medical devices, and logistics through strategic partnerships in various provinces[15]. - The company aims to deepen its market presence in East, North, and South China, further expanding its cloud hospital platform network[18]. - The company is committed to driving innovation in home healthcare services, aligning with the growing demand for reliable and high-quality medical services in an aging society[14]. - The company launched 96 nursing service products, serving over 150,000 home care patients, indicating a healthy overall business development[30]. - The company actively promoted the establishment of standardized home care service protocols, leading to the development of multiple industry standards recognized by national health authorities[34]. - The company’s initiative "Zheli Nursing" was awarded as one of the "Top Ten Influential Events" in Zhejiang's health sector for 2023, highlighting its commitment to social responsibility[35]. - The company aims to enhance the efficiency of medical services through innovative service models, including self-service appointment systems and mobile payment options for patients[32]. - The cloud hospital platform strategy focuses on connecting local governments, medical institutions, patients, and insurance providers to improve the fairness of medical resource allocation[38]. - The company plans to continue its strategic model of the urban cloud hospital platform to better serve healthcare stakeholders and contribute to industry development in 2024[35]. - As of December 31, 2023, the company has established 45 internet hospitals in Ningbo, with 16,000 doctors and 11,000 nurses on the platform, serving over 1.5 million people in internet medical services[40]. - The company has focused on expanding its cloud hospital platform in cities like Chongqing and Nanning, investing in technology to improve functionality and user experience[41]. - The company continues to optimize its cloud hospital platform and enhance product experience to improve patient care efficiency[71]. Employee and Operational Metrics - The company employed 962 full-time employees as of December 31, 2023, with total employee compensation and benefits expenses amounting to RMB 193.5 million, a decrease from RMB 223.5 million in 2022[143]. - The number of nurses on the platform with over five years of clinical experience increased to 69,000 from 38,000 in the previous year[75]. - The number of paid medical institutions increased by 238.6% year-on-year, reaching 491 institutions compared to 145 in 2022[44]. - The number of institutional clients for health management services reached 7,441, with a retention rate of 78% in 2023, up from 68% in 2022[82]. - The company has integrated online and offline medical services, enhancing user experience and operational efficiency[46]. Financial Position and Cash Flow - Cash and cash equivalents as of December 31, 2023, amounted to RMB 676.8 million, with no significant additional external financing plans currently in place[131]. - The net cash inflow from financing activities for the year ended December 31, 2023, was RMB 504.8 million, mainly due to shareholder contributions of RMB 567.6 million[112]. - The total outstanding loan principal as of December 31, 2023, was RMB 509.4 million, with RMB 102.5 million of bank financing remaining unused[135]. - The company reported a decrease in cash and cash equivalents at the end of the year to RMB 676.8 million, up from RMB 350.7 million at the beginning of the year[159]. - The company has no significant foreign exchange risk as most transactions are settled in RMB and USD, and it holds no financial instruments for hedging purposes[139]. Research and Development - Research and development expenses decreased by 29.6% from RMB 79.0 million for the year ended December 31, 2022, to RMB 55.6 million for the same period in 2023[121]. - The group is eligible to apply for a tax deduction of 175% on R&D expenses, as per the regulations effective since 2018[194]. Corporate Governance and Compliance - The company plans to maintain high levels of corporate governance to protect shareholder interests and enhance corporate value[170]. - The company emphasized its commitment to internal controls and risk management during discussions with the audit committee[197]. - The company's audit committee reviewed the annual performance for the year ending December 31, 2023, ensuring compliance with relevant accounting standards and regulations[197]. - The group’s financial statements were prepared in accordance with relevant accounting principles and regulations, ensuring transparency and accuracy[197].

Financial Performance - For the six months ended June 30, 2023, the company's revenue was RMB 218.9 million, a decrease of 9.34% from RMB 241.5 million in the same period last year[49]. - The gross profit margin increased to 30.7%, up 11.7% from 19.0% in the previous year[49]. - Revenue from internet medical services generated RMB 700 million, representing an 11.9% increase from RMB 625 million in the same period last year[34]. - Health management services generated revenue of RMB 82.8 million, a significant increase of 51.8% from RMB 54.6 million year-on-year[53]. - Revenue from the cloud hospital platform increased by 4.8% from RMB 50.7 million in the six months ended June 30, 2022, to RMB 53.1 million in the same period of 2023, primarily due to a large-scale project passing quality acceptance[61]. - Revenue from the internet medical services segment rose by 11.9% from RMB 62.5 million in the six months ended June 30, 2022, to RMB 70.0 million in the same period of 2023, driven by increased demand for telemedicine and home care services[61]. - Revenue from the health management services segment surged by 51.8% from RMB 54.6 million in the six months ended June 30, 2022, to RMB 82.8 million in the same period of 2023, as operations resumed following COVID-19 disruptions[61]. - Revenue from smart medical health products plummeted by 82.4% from RMB 73.6 million in the six months ended June 30, 2022, to RMB 13.0 million in the same period of 2023, due to reduced project deliveries and client budget constraints[62]. - The company reported a net loss of approximately RMB 95.0 million, compared to a net loss of RMB 157.4 million for the same period in 2022, representing a 39.5% improvement[106][108]. - The adjusted net loss (non-HKFRS measure) for the same period was RMB 80.3 million, down from RMB 104.3 million in the prior year, indicating a 23.0% reduction[108]. - The reported loss decreased by 39.6% from RMB 157.4 million for the six months ended June 30, 2022, to RMB 95.0 million for the same period in 2023[86]. - The total comprehensive loss for the six months ended June 30, 2023, was RMB (103,703) thousand, a decrease from RMB (164,862) thousand in the same period of 2022, reflecting a reduction of about 37.1%[130]. Assets and Liabilities - As of June 30, 2023, the total assets of the group amounted to RMB 818,883 thousand, a decrease from RMB 934,445 thousand as of December 31, 2022, representing a decline of approximately 12.3%[23]. - The group's cash and cash equivalents were RMB 227,310 thousand as of June 30, 2023, down from RMB 350,748 thousand as of December 31, 2022, indicating a decrease of about 35.1%[23]. - The total liabilities of the group as of June 30, 2023, were not explicitly stated but can be inferred from the total assets and equity figures, indicating a significant financial position[23]. - As of June 30, 2023, the company's total net debt was approximately RMB 540.1 million, which includes redeemable financial liabilities of RMB 374.7 million[106]. - The company had cash and cash equivalents of RMB 227.3 million as of June 30, 2023, and does not have any significant external financing plans[113]. - The company's capital debt ratio was 137% as of June 30, 2023, compared to 129% at the end of 2022[121]. - As of June 30, 2023, the company had no significant liabilities or debts, maintaining a clean balance sheet[89]. Employee and Incentive Plans - The company employed 1,043 full-time employees as of June 30, 2023, all located in China[102]. - The workforce consisted of 1,043 employees, with 35.9% in health management, 32.2% in sales and marketing, and 16.1% in R&D[125]. - The company has established six employee incentive plans from 2017 to 2021, which may impact future financial performance and employee retention strategies[8]. - The company has implemented stock option plans to align employee interests with corporate goals[149]. - The pre-IPO share option plan allows for a total of 81,600,000 shares to be issued, representing approximately 9.69% of the company's total issued share capital as of the listing date[189]. - The pre-IPO share option plan will be managed by the board and its designated human resources department, with the board's decisions being final and binding[187]. - The effective period for the options granted under the pre-IPO share option plan is 10 years from the grant date, after which any unexercised options will expire[194]. Research and Development - R&D expenses decreased by 33.3% from RMB 41.7 million for the six months ended June 30, 2022, to RMB 27.8 million for the same period in 2023, primarily due to reduced employee benefits and a decrease in the number of R&D personnel[81]. - Research and development expenses for the period were RMB 27,779 thousand, down 33.3% from RMB 41,666 thousand in the previous year[147]. Shareholder Information - Dalian Kangruida Management holds 29.65% of the total shares of Dongsoft Holdings, making it the largest shareholder[158]. - Major shareholders include Beijing Kangji, which holds 22,145,000 shares, representing a significant stake[175]. - The company has a strategic focus on expanding its market presence and enhancing shareholder value through various investment partnerships[159]. - The company has a total of 841,876,805 shares outstanding, with major shareholders holding significant stakes, including Eastsoft (Hong Kong) at 23.66% and China Life Insurance at 12.12%[178][180]. Cash Flow and Expenditures - Operating cash flow before changes in working capital improved from RMB (74,644) thousand to RMB (43,857) thousand year-over-year[71]. - The net cash used in operating activities for the six months ended June 30, 2023, was RMB 90.8 million, reflecting an increase in trade receivables[114]. - The company incurred capital expenditures of RMB 0.5 million during the reporting period, significantly lower than RMB 4.5 million for the same period in 2022[111]. - The company reported a net cash outflow from financing activities of RMB (33,130) thousand for the first half of 2023, compared to an inflow of RMB 91,643 thousand in the same period of 2022, reflecting a significant change in financing strategy[130]. Strategic Focus - The company continues to focus on expanding its cloud hospital platform services and internet medical services, aiming to enhance its market presence in the healthcare sector in China[131]. - The company plans to enhance its platform's technological infrastructure and integrate big data analytics, AI, and blockchain technology[40]. - The company aims to strengthen collaborations with top medical institutions to diversify clinical application scenarios for grassroots medical institutions[59].