[Company Information](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) [Board of Directors and Committees](index=3&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E5%8F%8A%E5%A7%94%E5%93%A1%E6%9C%83) The company's Board of Directors, led by Chairman Dr. Liu Jiren and CEO Ms. Zong Wenhong, includes executive, non-executive, and independent non-executive directors, supported by audit, remuneration, nomination, and strategy committees for governance - The Board is chaired by Dr. Liu Jiren as Chairman and Non-executive Director, with Ms. Zong Wenhong as Executive Director and CEO, and includes Audit, Remuneration, Nomination, and Strategy Committees[5](index=5&type=chunk) [Company Contact Information](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%81%AF%E7%B5%A1%E4%BF%A1%E6%81%AF) The company's registered office is in the Cayman Islands, with its principal place of business in Ningbo, Zhejiang, China, and its main Hong Kong office on Queen's Road East, Wan Chai - The company's registered office is in the Cayman Islands, with its principal place of business in Ningbo, Zhejiang, China, and its main Hong Kong office on Queen's Road East, Wan Chai[5](index=5&type=chunk)[6](index=6&type=chunk) [Professional Advisors](index=4&type=section&id=%E5%B0%88%E6%A5%AD%E9%A1%A7%E5%95%8F) Ernst & Young serves as the company's auditor, with Industrial Bank and China Merchants Bank as primary bankers, and legal counsel provided by Linklaters, Tian Yuan Law Firm, and Maples and Calder (Hong Kong) LLP for Hong Kong, China, and Cayman Islands law - Ernst & Young is the company's auditor, with Industrial Bank and China Merchants Bank as primary bankers, and legal counsel covering Hong Kong, China, and Cayman Islands law[7](index=7&type=chunk) [Financial Highlights](index=5&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) Financial Highlights for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 178,605 | 179,214 | (609) | -0.34% | | Gross Profit | 39,313 | 42,556 | (3,243) | -7.62% | | Gross Margin | 22.0% | 23.7% | (1.7%) | -7.17% | | Loss for the Period | (49,975) | (60,484) | 10,509 | 17.37% | | Add: Share-based Payment Expenses | 11,571 | 9,182 | 2,389 | 26.02% | | Adjusted Net Loss for the Period | (38,404) | (51,302) | 12,898 | 25.14% | [Management Discussion and Analysis](index=6&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) [Business Review](index=6&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) During the reporting period, the company maintained its 'City Cloud Hospital Platform' model, focusing on government collaboration and AI-driven growth, achieving scaled platform networks and core business expansion, particularly in 'Internet+Nursing Services,' while optimizing low-profit medical services [Core Business Model](index=6&type=section&id=%E6%A0%B8%E5%BF%83%E5%95%86%E6%A5%AD%E6%A8%A1%E5%BC%8F) - Adhering to the 'City Cloud Hospital Platform' model, leveraging government support to rapidly acquire urban medical resources and provide professional, convenient medical and nursing services[9](index=9&type=chunk) - The core business model involves government cooperation, city-wide batch access, and AI technology, building a 'smart matching – precise service – continuous optimization' digital healthcare service closed-loop[10](index=10&type=chunk) [Platform Network Development](index=7&type=section&id=%E5%B9%B3%E5%8F%B0%E7%B6%B2%E7%B5%A1%E7%99%BC%E5%B1%95) - As of June 30, 2025, over **36,000 medical institutions** were connected to the platform network, including **3,303 hospitals**, a **24.5% year-on-year increase**[12](index=12&type=chunk) - Resident doctors reached **147,000**, an **8.0% year-on-year increase**; resident nurses reached **145,000**, a **34.1% year-on-year increase**[12](index=12&type=chunk) [Core Business Focus](index=7&type=section&id=%E6%A0%B8%E5%BF%83%E6%A5%AD%E5%8B%99%E8%81%9A%E7%84%A6) - Home nursing service volume exceeded **218,000 person-times**, a **53.1% year-on-year increase**[13](index=13&type=chunk) - Nursing consultation service volume exceeded **166,000 person-times**, a **12.9% year-on-year increase**[13](index=13&type=chunk) [Platform Ecosystem and Specialized Operations](index=7&type=section&id=%E5%B9%B3%E5%8F%B0%E7%94%9F%E6%85%8B%E8%88%87%E5%B0%88%E7%A7%91%E5%8C%96%E9%81%8B%E7%87%9F) - During the reporting period, the company achieved significant business value growth, improved operational efficiency, and optimized financial structure through continuous urban network expansion and service product matrix innovation[15](index=15&type=chunk) [Segment Revenue](index=8&type=section&id=%E5%88%86%E9%83%A8%E6%A5%AD%E5%8B%99%E6%94%B6%E5%85%A5) [Medical Services](index=8&type=section&id=%E9%86%AB%E7%99%82%E6%9C%8D%E5%8B%99) Medical Services Revenue | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 69,827 | 87,615 | -20.3% | [Nursing Services](index=8&type=section&id=%E8%AD%B7%E7%90%86%E6%9C%8D%E5%8B%99) Nursing Services Revenue | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 34,624 | 24,478 | 41.4% | [Health Management Services](index=8&type=section&id=%E5%81%A5%E5%BA%B7%E7%AE%A1%E7%90%86%E6%9C%8D%E5%8B%99) Health Management Services Revenue | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 74,154 | 67,121 | 10.5% | [Business Outlook](index=12&type=section&id=%E6%A5%AD%E5%8B%99%E5%89%8D%E6%99%AF) Addressing aging and declining birth rates, the company will focus on 'AI+full-course disease management' and 'universal home healthcare,' leveraging technological innovation and model optimization to build a nationwide 'at-home medical and nursing service' network, aiming to be a key driver of new healthcare infrastructure - Focusing on 'AI+full-course disease management' and 'universal home healthcare' core trends, accelerating the construction of a nationwide 'at-home medical and nursing service' network and ecosystem[33](index=33&type=chunk)[35](index=35&type=chunk) - Deeply integrating AI and big data technologies, comprehensively upgrading the service system, promoting a shift in medical models from passive treatment to proactive health, and extending from hospitals to out-of-hospital and home settings[35](index=35&type=chunk) - Committed to breaking the time and space boundaries of traditional medical services, building a one-stop healthcare service platform, integrating resources from government, medical institutions, commercial insurance, and pharmaceutical supply chains[36](index=36&type=chunk) [Financial Review](index=13&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) During the reporting period, total revenue slightly decreased, but the company significantly narrowed its loss for the period and adjusted net loss by optimizing business structure and enhancing operational efficiency; sales, distribution, R&D, and administrative expenses declined, while other income fell sharply due to reduced government grants and wealth management product returns [Revenue Analysis](index=13&type=section&id=%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) Revenue from Contracts with Customers | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 178,605 | 179,214 | (609) | -0.3% | - Medical services revenue decreased by **20.3%**, primarily due to structural optimization of low-profit businesses and intensified market competition[38](index=38&type=chunk) - Nursing services revenue increased by **41.4%**, benefited from market promotion, professional operations, and AI empowerment[39](index=39&type=chunk) - Health management services revenue increased by **10.5%**, primarily due to increased service volume[40](index=40&type=chunk) [Costs and Gross Profit](index=14&type=section&id=%E6%88%90%E6%9C%AC%E8%88%87%E6%AF%9B%E5%88%A9) Cost of Sales and Services and Gross Profit | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of Sales and Services | 139,292 | 136,658 | 2,634 | 1.9% | | Gross Profit | 39,313 | 42,556 | (3,243) | -7.6% | | Gross Margin | 22.0% | 23.7% | (1.7%) | -7.17% | - Medical services gross margin was **13.3%** (2024: 17.7%), nursing services gross margin was **19.1%** (2024: 26.6%), and health management services gross margin was **31.6%** (2024: 30.5%)[42](index=42&type=chunk) [Operating Expenses](index=14&type=section&id=%E7%B6%93%E7%87%9F%E9%96%8B%E6%94%AF) Operating Expenses | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 31,008 | 37,345 | (6,337) | -17.0% | | Research and Development Expenses | 19,570 | 21,270 | (1,700) | -8.0% | | Administrative Expenses | 43,268 | 43,727 | (459) | -1.0% | [Other Financial Items](index=14&type=section&id=%E5%85%B6%E4%BB%96%E8%B2%A1%E5%8B%99%E9%A0%85%E7%9B%AE) Other Income and Gains | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Other Income | 3,293 | 12,831 | (9,538) | -74.3% | | Net Other Gains | 4,921 | 417 | 4,504 | 1080.1% | | Net Finance Costs | 6,218 | 5,543 | 675 | 12.2% | | Share of Loss of Associates | (4,670) | (4,927) | 257 | 5.2% | [Loss for the Period and Adjusted Net Loss](index=15&type=section&id=%E6%9C%9F%E5%85%A7%E8%99%A7%E6%90%8D%E8%88%87%E7%B6%93%E8%AA%BF%E6%95%B4%E6%B7%A8%E8%99%A7%E6%90%8D) Loss for the Period and Adjusted Net Loss | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Loss for the Period | (49,975) | (60,484) | 10,509 | 17.4% | | Adjusted Net Loss for the Period | (38,404) | (51,302) | 12,898 | 25.1% | - Adjusted net loss decreased primarily due to economies of scale in nursing services, improved organizational efficiency and resource allocation, reduced expenditure from AI-enabled operational efficiency, and decreased net impairment losses on financial assets due to trade receivables recovery[54](index=54&type=chunk) [Capital and Liquidity](index=16&type=section&id=%E8%B3%87%E6%9C%AC%E8%88%87%E6%B5%81%E5%8B%95%E6%80%A7) The company had no significant contingent liabilities during the reporting period, with capital expenditures primarily for property and equipment; liquidity stemmed from bank borrowings and equity financing, cash and cash equivalents decreased but remained sufficient, and total borrowings declined while unused bank facilities increased [Contingent Liabilities and Capital Expenditures](index=16&type=section&id=%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5%E8%88%87%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) - As of June 30, 2025, the company had **no significant contingent liabilities**[56](index=56&type=chunk) Capital Expenditures | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Capital Expenditures | 4,100 | 4,400 | [Liquidity and Capital Resources](index=16&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) Cash Flow Summary | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash flows used in operating activities | (49,961) | (64,306) | | Net cash flows used in investing activities | (147,517) | (6,519) | | Net cash flows used in financing activities | (70,843) | (33,783) | | Net decrease in cash and cash equivalents | (268,321) | (104,608) | | Cash and cash equivalents at beginning of period | 760,857 | 676,794 | | Cash and cash equivalents at end of period | 490,789 | 575,930 | - Net cash used in investing activities significantly increased, primarily due to higher subscriptions for wealth management products, partially offset by redemptions[63](index=63&type=chunk) [Borrowings](index=17&type=section&id=%E5%80%9F%E6%AC%BE%E6%83%85%E6%B3%81) Principal Balance of Borrowings | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Principal Balance of Borrowings | 463,100 | 509,900 | (46,800) | -9.18% | | Unused Bank Facilities | 30,700 | 100 | 30,600 | 30600.0% | [Significant Investments and Transactions](index=18&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E8%88%87%E4%BA%A4%E6%98%93) The company holds a significant investment in Neusoft Management Consulting (Shanghai) Co., Ltd., reclassifying part of its equity as fair value through OCI; during the period, it also partially divested and increased capital in Dalian Yunshe, reducing its shareholding [Significant Investments Held](index=18&type=section&id=%E6%8C%81%E6%9C%89%E7%9A%84%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) Overview of Significant Investments | Investee Company | Principal Business | Investment Cost (RMB thousands) | Shareholding Percentage | Carrying Amount (RMB thousands) | Percentage of Group's Total Assets | Share of Loss of Associates for Six Months Ended June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Neusoft Management Consulting (Shanghai) Co., Ltd. | Enterprise consulting services, including medical equipment | 96,436 | 49.00% | 85,330 | 7.68% | (1,190) | - As of June 30, 2025, the company held wealth management products totaling **USD 20.1 million**, with a fair value of **USD 20.2 million**, accounting for **13.0% of total assets**[67](index=67&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries, Associates, and Joint Ventures](index=19&type=section&id=%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E8%B3%87%E4%BC%81%E6%A5%AD%E7%9A%84%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) - Xikang Health Technology sold approximately **4.23%** equity in Dalian Yunshe for **RMB 30 million**, reducing the company's shareholding to **7.15%** post-transaction[70](index=70&type=chunk) [Risk Management](index=19&type=section&id=%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The company primarily operates in China, with most transactions settled in RMB, and management perceives no significant foreign exchange risk; capital is monitored via the capital-to-debt ratio, which stood at 9.3% as of June 30, 2025 - The company primarily operates in China, with most transactions settled in RMB, and management believes there is **no significant foreign exchange risk**[73](index=73&type=chunk) Capital-to-Debt Ratio | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Capital-to-Debt Ratio | 9.3% | Not applicable (net cash position) | [Other Information](index=20&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Dividends and Securities Transactions](index=20&type=section&id=%E8%82%A1%E6%81%AF%E8%88%87%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025; during the period, neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities on the Stock Exchange - The Board resolved **not to declare an interim dividend** for the six months ended June 30, 2025[75](index=75&type=chunk) - During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[76](index=76&type=chunk) [Employees and Remuneration Policy](index=20&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the company had 834 full-time employees, with 40.9% in health management; staff costs were RMB 74.9 million, and employees are incentivized through performance reviews, share option schemes, and various benefits Number of Employees by Function (As of June 30, 2025) | Function | Number of Employees | Percentage of Total | | :--- | :--- | :--- | | Management and Administration | 138 | 16.5% | | Sales, Marketing and Operations Support | 204 | 24.5% | | Research and Development | 151 | 18.1% | | Health Management | 341 | 40.9% | | Total | 834 | 100.0% | - As of June 30, 2025, staff costs paid by the company were **RMB 74.9 million**, a decrease compared to **RMB 86.6 million** in the prior year[77](index=77&type=chunk) [Equity Disclosure](index=21&type=section&id=%E8%82%A1%E6%AC%8A%E6%8A%AB%E9%9C%B2) Disclosed interests and short positions of directors, chief executives, and major shareholders in the company's shares as of June 30, 2025, including Dr. Liu Jiren, Ms. Zong Wenhong, Dr. Wang Nan, Neusoft (Hong Kong), PICC Property and Casualty, and other key shareholders' holdings [Directors' and Chief Executive's Interests](index=21&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%AC%8A%E7%9B%8A) Directors' and Chief Executive's Interests in the Company's Shares (As of June 30, 2025) | Director Name | Nature of Interest | Number and Class of Securities | Approximate % of Company's Interest | | :--- | :--- | :--- | :--- | | Dr. Liu Jiren | Interest in controlled corporation | 193,252,305 ordinary shares(L) | 22.95% | | Ms. Zong Wenhong | Interest in controlled corporation | 21,004,500 ordinary shares(L) | 2.49% | | | Beneficial owner | 14,500,000 ordinary shares(L) | 1.72% | | Dr. Wang Nan | Interest in controlled corporation | 21,004,500 ordinary shares(L) | 2.49% | [Major Shareholders' Interests](index=22&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%AC%8A%E7%9B%8A) Major Shareholders' Interests in the Company's Shares (As of June 30, 2025) | Shareholder Name/Entity | Nature of Interest | Number of Shares Held | Approximate % of Company's Interest | | :--- | :--- | :--- | :--- | | Neusoft (Hong Kong) | Beneficial interest | 206,206,710(L) | 24.49% | | Smartway | Beneficial interest | 81,364,000(L) | 9.66% | | Neusoft Holdings International V | Beneficial interest | 68,384,305(L) | 8.12% | | PICC Property and Casualty | Beneficial interest | 101,653,000(L) | 12.07% | | Jingjian Venture Capital | Beneficial interest | 86,700,000(L) | 10.30% | | First Care | Beneficial interest | 64,728,790(L) | 7.69% | | Syn Invest | Beneficial interest | 42,500,000(L) | 5.05% | [Share Option Schemes](index=24&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The company has Pre-IPO and Post-IPO Share Option Schemes to incentivize employees; as of the reporting period, 63,140,000 Pre-IPO options remained unexercised, and 25,473,000 Post-IPO options were unvested and unexercised [Pre-IPO Share Option Scheme](index=24&type=section&id=%E9%A6%96%E6%AC%A1%E5%85%AC%E9%96%8B%E7%99%BC%E5%94%AE%E5%89%8D%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) - The Pre-IPO Share Option Scheme's total shares shall not exceed **81,600,000 shares**, approximately **9.69%** of the issued share capital at period-end[95](index=95&type=chunk) - As of June 30, 2025, **63,140,000 share options** were granted, all unexercised, with an exercise price of **USD 0.588 per share**[109](index=109&type=chunk)[110](index=110&type=chunk) [Post-IPO Share Option Scheme](index=27&type=section&id=%E9%A6%96%E6%AC%A1%E5%85%AC%E9%96%8B%E7%99%BC%E5%94%AE%E5%BE%8C%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) - The Post-IPO Share Option Scheme's total limit shall not exceed approximately **10%** (**84,187,680 shares**) of the issued shares[119](index=119&type=chunk) - As of June 30, 2025, **25,473,000 share options** were granted, all unvested and unexercised[125](index=125&type=chunk)[128](index=128&type=chunk) - Ms. Zong Wenhong was granted **4,000,000 share options**, with an exercise price of **HKD 1.14**[128](index=128&type=chunk) [Use of Proceeds from Global Offering](index=31&type=section&id=%E5%85%A8%E7%90%83%E7%99%BC%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) Disclosed the specific use of net proceeds from the global offering, approximately HKD 554.5 million, and actual usage as of June 30, 2025, primarily for expanding the cloud hospital platform, enriching products, R&D, potential M&A, and working capital; idle funds were also used for wealth management products Use of Proceeds from Global Offering and Usage (As of June 30, 2025) | Use of Proceeds | Percentage of Proceeds | Net Proceeds (HKD millions) | Unused Amount as of Jan 1, 2025 (HKD millions) | Amount Used for Six Months Ended June 30, 2025 (HKD millions) | Unused Amount as of June 30, 2025 (HKD millions) | Expected Full Utilization Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Expand City Cloud Hospital Platform | 30% | 166.3 | 150.1 | 13.9 | 136.2 | As of December 31, 2028 | | Enrich Industry Value Chain Products | 25% | 138.6 | 128.5 | 6.4 | 122.1 | As of December 31, 2028 | | R&D for Technology Infrastructure and Data Capabilities | 25% | 138.6 | 117.7 | 19.7 | 98.0 | As of December 31, 2028 | | Potential M&A Opportunities | 10% | 55.5 | 55.5 | 0.0 | 55.5 | As of December 31, 2028 | | Working Capital and Other General Corporate Purposes | 10% | 55.5 | 44.7 | 7.7 | 37.0 | As of December 31, 2028 | - The company resolved to use no more than **USD 40 million** of idle proceeds to purchase highly secure and liquid wealth management products for cash management[134](index=134&type=chunk) [Corporate Governance and Compliance](index=32&type=section&id=%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E8%88%87%E5%90%88%E8%A6%8F) During the reporting period, the company had no material litigation or arbitration and fully complied with the Model Code for Securities Transactions by Directors and the Corporate Governance Code in Appendix C3 of the Listing Rules; board changes included Dr. Chen Lianyong's resignation as non-executive director and Dr. Qi Guoxian's appointment to the Audit Committee, with the M&A and Articles of Association revised to comply with Listing Rules - During the reporting period, the company had **no material litigation or arbitration**[135](index=135&type=chunk) - The company fully complied with the Model Code for Securities Transactions by Directors and the Corporate Governance Code contained in Appendix C3 of the Listing Rules[136](index=136&type=chunk)[138](index=138&type=chunk) - Dr. Chen Lianyong resigned as a Non-executive Director and from related committee positions, and Dr. Qi Guoxian was appointed as a member of the Audit Committee[139](index=139&type=chunk) - The company revised and restated its Memorandum and Articles of Association to comply with the Listing Rules' amendments related to the paperless listing mechanism[141](index=141&type=chunk) [Events After Reporting Period](index=33&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Subsequent to the reporting period, on July 21, 2025, the company granted a total of 28,990,000 share options under the Post-IPO Share Option Scheme to 236 eligible participants, including Executive Director and CEO Ms. Zong Wenhong, at an exercise price of HKD 0.904 per share - On July 21, 2025, the company granted **28,990,000 share options** to 236 eligible participants, with an exercise price of **HKD 0.904 per share**[142](index=142&type=chunk) - Ms. Zong Wenhong was granted **5,000,000 share options**[142](index=142&type=chunk) [Review and Acknowledgements](index=33&type=section&id=%E5%AF%A9%E9%96%B1%E8%88%87%E8%87%B4%E8%AC%9D) The company's Audit Committee reviewed and approved this interim report; the interim financial information was reviewed by Ernst & Young in accordance with Hong Kong Review Engagements Standards; the company maintains sufficient public float and extends gratitude to all employees, management, shareholders, customers, and business partners - The Audit Committee reviewed and approved this interim report[144](index=144&type=chunk) - The interim financial information was reviewed by Ernst & Young in accordance with Hong Kong Standard on Review Engagements 2410[145](index=145&type=chunk) - The company maintains sufficient public float and extends gratitude to all stakeholders[146](index=146&type=chunk)[147](index=147&type=chunk) [Independent Review Report](index=33&type=section&id=%E7%8D%A8%E7%AB%8B%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) - Ernst & Young has reviewed the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410[149](index=149&type=chunk) - The review concluded that nothing has come to their attention that causes them to believe the interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[150](index=150&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=35&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30, 2025) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 178,605 | 179,214 | | Cost of Sales | (139,292) | (136,658) | | Gross Profit | 39,313 | 42,556 | | Selling and Distribution Expenses | (31,008) | (37,345) | | Research and Development Expenses | (19,570) | (21,270) | | Administrative Expenses | (43,268) | (43,727) | | Net Reversal of Impairment Losses on Financial and Contract Assets | 7,781 | (3,619) | | Other Income | 3,293 | 12,831 | | Other Expenses | (866) | – | | Net Other Gains | 4,921 | 417 | | Finance Income | 5,715 | 8,498 | | Finance Costs | (11,933) | (14,041) | | Share of Loss of Associates | (4,670) | (4,927) | | Loss Before Tax | (50,292) | (60,627) | | Income Tax Credit | 317 | 143 | | Loss for the Period | (49,975) | (60,484) | | Total Comprehensive Loss for the Period | (52,551) | (56,348) | | Loss Per Share Attributable to Ordinary Equity Holders of the Parent (RMB) | (0.06) | (0.07) | [Condensed Consolidated Statement of Financial Position](index=37&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 28,218 | 31,684 | | Right-of-use assets | 53,430 | 60,689 | | Investments in associates | 85,330 | 169,559 | | Total non-current assets | 238,175 | 280,525 | | **Current Assets** | | | | Trade receivables | 87,799 | 101,974 | | Financial assets at fair value through profit or loss | 181,167 | 36,842 | | Cash and cash equivalents | 490,789 | 760,857 | | Total current assets | 872,477 | 979,909 | | **Current Liabilities** | | | | Trade payables | 162,721 | 201,137 | | Interest-bearing bank borrowings | 463,606 | 510,305 | | Total current liabilities | 731,160 | 831,430 | | **Equity** | | | | Total equity | 324,892 | 368,122 | [Condensed Consolidated Statement of Changes in Equity](index=39&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) Condensed Consolidated Statement of Changes in Equity (For the Six Months Ended June 30, 2025) | Metric | Share Capital (RMB thousands) | Share Premium (RMB thousands) | Reserves (RMB thousands) | Accumulated Losses (RMB thousands) | Total Attributable to Owners of Parent (RMB thousands) | Non-controlling Interests (RMB thousands) | Total Equity (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | December 31, 2024 (Audited) | 1,125 | 2,543,431 | 359,083 | (2,540,330) | 363,309 | 4,813 | 368,122 | | Loss for the period | – | – | – | (48,886) | (48,886) | (1,089) | (49,975) | | Other comprehensive loss for the period (Exchange differences) | – | – | (2,576) | – | (2,576) | – | (2,576) | | Acquisition of non-controlling interests | – | – | (1,038) | – | (1,038) | (1,212) | (2,250) | | Share-based payments | – | – | 11,566 | – | 11,566 | 5 | 11,571 | | June 30, 2025 (Unaudited) | 1,125 | 2,543,431 | 367,035 | (2,589,216) | 322,375 | 2,517 | 324,892 | [Condensed Consolidated Statement of Cash Flows](index=40&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Condensed Consolidated Statement of Cash Flows (For the Six Months Ended June 30, 2025) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash flows used in operating activities | (49,961) | (64,306) | | Net cash flows used in investing activities | (147,517) | (6,519) | | Net cash flows used in financing activities | (70,843) | (33,783) | | Net decrease in cash and cash equivalents | (268,321) | (104,608) | | Cash and cash equivalents at beginning of period | 760,857 | 676,794 | | Cash and cash equivalents at end of period | 490,789 | 575,930 | [Notes to the Condensed Consolidated Financial Information](index=41&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) [General Information and Accounting Policies](index=41&type=section&id=%E4%B8%80%E8%88%AC%E4%BF%A1%E6%81%AF%E8%88%87%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) This section outlines the company's registration, primary business scope (medical, nursing, health management services), and confirms that the interim financial information is prepared under HKAS 34, with consistent accounting policies, and HKAS 21 (Revised) had no material impact - The company primarily engages in medical services, nursing services, and health management services in China[162](index=162&type=chunk) - The interim financial information is prepared under HKAS 34, with consistent accounting policies, and the newly revised HKAS 21 had no impact on the Group[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk) [Operating Segment Information](index=42&type=section&id=%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E4%BF%A1%E6%81%AF) Operating segment information for the six months ended June 30, 2025, and 2024, is provided, segmented by medical, nursing, and health management services, including external customer sales, cost of sales, segment gross profit, and reconciliation to loss before tax Operating Segment Information (For the Six Months Ended June 30, 2025) | Segment | Medical Services (RMB thousands) | Nursing Services (RMB thousands) | Health Management Services (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Sales to external customers | 69,827 | 34,624 | 74,154 | 178,605 | | Cost of sales | (60,521) | (28,023) | (50,748) | (139,292) | | Segment gross profit | 9,306 | 6,601 | 23,406 | 39,313 | [Revenue and Other Income](index=43&type=section&id=%E6%94%B6%E5%85%A5%E8%88%87%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Detailed analysis of customer contract revenue composition, segmented by geographic market (Mainland China) and revenue recognition timing (at a point in time or over time), along with other income sources like government grants and wealth management product returns Disaggregation of Revenue from Contracts with Customers (For the Six Months Ended June 30, 2025) | Timing of revenue recognition | Medical Services (RMB thousands) | Nursing Services (RMB thousands) | Health Management Services (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | At a point in time | 67,210 | 34,500 | 74,009 | 175,719 | | Over time | 2,617 | 124 | 145 | 2,886 | Other Income Analysis | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Government grants | 1,620 | 7,732 | | Investment return from wealth management products | 1,568 | 4,872 | | Total | 3,293 | 12,831 | [Components of Loss Before Tax](index=44&type=section&id=%E7%A8%85%E5%89%8D%E8%99%A7%E6%90%8D%E6%A7%8B%E6%88%90) Detailed adjustments leading to loss before tax are presented, including depreciation and amortization, share-based payments, employee benefit expenses, and net reversal of impairment losses on financial and contract assets, reflecting operating costs and non-cash expenses Adjustments to Loss Before Tax (For the Six Months Ended June 30, 2025) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss Before Tax | (50,292) | (60,627) | | Depreciation and amortization | 14,977 | 15,214 | | Share-based payments | 11,571 | 9,182 | | Total employee benefit expenses | 86,439 | 95,763 | | Net reversal of impairment losses on financial and contract assets | (7,781) | 3,619 | [Finance Income and Costs](index=46&type=section&id=%E8%9E%8D%E8%B3%87%E6%94%B6%E5%85%A5%E8%88%87%E6%88%90%E6%9C%AC) Finance income and costs for the six months ended June 30, 2025, are disclosed, with interest income of RMB 5.715 million and total finance costs of RMB 11.933 million, primarily from bank borrowings and lease liabilities Finance Income and Costs (For the Six Months Ended June 30, 2025) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Finance income (Interest income) | 5,715 | 8,498 | | Finance costs (Interest on bank borrowings) | (10,506) | (11,945) | | Finance costs (Interest on lease liabilities) | (1,427) | (2,080) | | Total finance costs | (11,933) | (14,041) | [Income Tax](index=46&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85) During the reporting period, the company had no Hong Kong profits tax provision; Mainland China corporate income tax is 25%, with a high-tech subsidiary enjoying a 15% preferential rate, resulting in a total income tax credit of RMB 317 thousand - Mainland China corporate income tax is **25%**, with a high-tech subsidiary enjoying a **15%** preferential tax rate[174](index=174&type=chunk) Income Tax Credit Analysis (For the Six Months Ended June 30, 2025) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current - Mainland China | 1,028 | 306 | | Deferred | (1,606) | (465) | | Total income tax credit | (317) | (143) | [Loss Per Share](index=47&type=section&id=%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) For the six months ended June 30, 2025, basic and diluted loss per share attributable to ordinary equity holders of the parent was RMB 0.06, an improvement from RMB 0.07 in the prior year Loss Per Share (For the Six Months Ended June 30, 2025) | Metric | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic and diluted loss per share | (0.06) | (0.07) | - Issued share options had an anti-dilutive effect on basic loss per share, thus no dilutive adjustment was made[176](index=176&type=chunk) [Asset Details](index=47&type=section&id=%E8%B3%87%E7%94%A2%E8%A9%B3%E6%83%85) Detailed disclosure of the company's asset balances and changes during the period, including property, plant and equipment, right-of-use assets, investments in associates, equity investments at fair value, long-term trade receivables, other receivables, trade receivables, other current assets, and financial assets at fair value through profit or loss [Property, Plant and Equipment](index=47&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) - For the six months ended June 30, 2025, the company's total cost of asset acquisitions was **RMB 1.201 million**, and the total book value of assets disposed was **RMB 0.593 million**[178](index=178&type=chunk) [Right-of-Use Assets](index=48&type=section&id=%E4%BD%BF%E7%94%A8%E6%AC%8A%E8%B3%87%E7%94%A2) - For the six months ended June 30, 2025, the company's total cost of right-of-use asset acquisitions was **RMB 5.426 million**, and the net gain from termination of assets was **RMB 0.103 million**[179](index=179&type=chunk) [Investments in Associates](index=48&type=section&id=%E6%8A%95%E8%B3%87%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8) Changes in Investments in Associates | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Beginning balance | 169,559 | 186,993 | | Disposal of partial equity interest in an associate | (79,559) | – | | Ending balance | 85,330 | 169,559 | - The company disposed of a portion of Dalian Yunshe's equity, reducing its shareholding from approximately **11.83%** to **7.15%**, losing significant influence, and reclassifying it as an equity investment at fair value[180](index=180&type=chunk) [Equity Investments Designated at Fair Value Through Other Comprehensive Income](index=49&type=section&id=%E6%8C%87%E5%AE%9A%E7%82%BA%E4%BB%A5%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F%E4%B8%94%E5%85%B6%E8%AE%8A%E5%8B%95%E8%A8%88%E5%85%A5%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E7%9A%84%E8%82%A1%E6%AC%8A%E6%8A%95%E8%B3%87) Equity Investments Designated at Fair Value | Investee Company | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Dalian Yunshe | 54,018 | – | [Long-Term Trade Receivables](index=49&type=section&id=%E9%95%B7%E6%9C%9F%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Net Carrying Amount of Long-Term Trade Receivables | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net carrying amount | 3,314 | 5,860 | [Other Receivables](index=50&type=section&id=%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Other Receivables (Current) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Receivable for equity transfer | 45,310 | 15,310 | | Total | 65,608 | 35,309 | [Trade Receivables](index=51&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Net Carrying Amount of Trade Receivables | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net carrying amount | 87,799 | 101,974 | Changes in Impairment Loss Provision for Trade Receivables | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Impairment loss (reversal) / recognized | (11,144) | 6,892 | [Other Current Assets](index=52&type=section&id=%E5%85%B6%E4%BB%96%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2) Other Current Assets | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Deductible input VAT | 3,205 | 219 | | Long-term trade receivables due within one year | 3,342 | 7,654 | | Total | 6,547 | 7,873 | [Financial Assets at Fair Value Through Profit or Loss](index=53&type=section&id=%E4%BB%A5%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F%E4%B8%94%E5%85%B6%E8%AE%8A%E5%8B%95%E8%A8%88%E5%85%A5%E7%95%B6%E6%9C%9F%E6%90%8D%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) Financial Assets at Fair Value | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Investment in wealth management products | 181,167 | 36,842 | - Wealth management product investment return was **RMB 1.568 million**, and net fair value gain was **RMB 0.592 million**[193](index=193&type=chunk) [Liability Details](index=53&type=section&id=%E8%B2%A0%E5%82%B5%E8%A9%B3%E6%83%85) Detailed disclosure of the company's liability balances and composition, including trade payables and interest-bearing bank borrowings; trade payables decreased, total interest-bearing bank borrowings slightly reduced, but fixed-rate borrowings increased as a proportion [Trade Payables](index=53&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) Aging Analysis of Trade Payables (As of June 30, 2025) | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 56,054 | 99,535 | | Total | 162,721 | 201,137 | [Interest-Bearing Bank Borrowings](index=54&type=section&id=%E8%A8%88%E6%81%AF%E9%8A%80%E8%A1%8C%E5%80%9F%E6%AC%BE) Interest-Bearing Bank Borrowings (As of June 30, 2025) | Interest rate type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Fixed rate | 344,361 | 180,187 | | Variable rate | 119,245 | 330,118 | | Total | 463,606 | 510,305 | - Approximately **RMB 390 million** of secured bank loans were guaranteed by the company's shareholders, Dalian Neusoft Holdings Co., Ltd. and Xikang Technology[196](index=196&type=chunk) [Notes to the Consolidated Cash Flow Statement](index=55&type=section&id=%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8%E9%99%84%E8%A8%BB) Detailed reconciliation from loss before tax to cash used in operating activities, including non-cash items like depreciation and amortization, share-based payments, and reversal of impairment on financial and contract assets, as well as working capital changes Adjustments to Cash Flow from Operating Activities (For the Six Months Ended June 30, 2025) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss Before Tax | (50,292) | (60,627) | | Depreciation and amortization | 14,977 | 15,214 | | Share-based payments | 11,571 | 9,182 | | Financial and contract assets (reversal of provision) / provision | (7,781) | 3,619 | | Cash used in operations | (52,376) | (66,726) | [Related Party Transactions](index=56&type=section&id=%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93) Disclosed related party transactions during the reporting period, including purchases and provision of services, lease contracts, bank loan guarantees, equity transfers, and key management personnel remuneration, along with outstanding related party balances at period-end [Transactions During the Period](index=56&type=section&id=%E6%9C%9F%E5%85%A7%E4%BA%A4%E6%98%93) Related Party Transactions During the Period (For the Six Months Ended June 30, 2025) | Transaction type | Related party | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Purchase of technical, maintenance and other services | Neusoft Corporation and its subsidiaries | 905 | 967 | | Provision of health management services | Neusoft Corporation, its subsidiaries and associates | 1,650 | 1,456 | | Provision of health management services | Neusoft Holdings | 191 | 131 | | Provision of health management services | PICC Property and Casualty and its subsidiaries | 31 | 32 | [Other Transactions](index=57&type=section&id=%E5%85%B6%E4%BB%96%E4%BA%A4%E6%98%93) - The Group's shareholders provided guarantees for certain bank loan principals obtained by the Group, not exceeding **RMB 390 million**[203](index=203&type=chunk) - The company sold a portion of its associate Dalian Yunshe's equity to a related party and acquired a **10%** equity interest in Dandong Xikang Fenghuang Clinic Co., Ltd[203](index=203&type=chunk) [Outstanding Balances](index=57&type=section&id=%E6%9C%AA%E5%84%9F%E4%BB%98%E7%B5%90%E9%A4%98) Outstanding Balances with Related Parties (As of June 30, 2025) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables | 5,429 | 5,970 | | Other receivables | 30,901 | 1,024 | | Trade payables | 17,988 | 19,650 | | Lease liabilities | 10,702 | 14,720 | [Key Management Personnel Remuneration](index=59&type=section&id=%E4%B8%BB%E8%A6%81%E7%AE%A1%E7%90%86%E4%BA%BA%E5%93%A1%E8%96%AA%E9%85%AC) Key Management Personnel Remuneration (For the Six Months Ended June 30, 2025) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Salaries, wages and bonuses | 1,544 | 1,421 | | Share-based payments | 2,470 | 5,274 | | Total remuneration paid to key management personnel | 4,205 | 6,788 | [Fair Value and Fair Value Hierarchy of Financial Instruments](index=59&type=section&id=%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9A%84%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E5%8F%8A%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E5%B1%A4%E7%B4%9A) Disclosed the carrying amounts and fair values of the company's financial instruments, detailing fair value measurement methods and hierarchy (primarily Level 3), and changes in Level 3 fair value measurements during the period Carrying Amounts and Fair Values of Financial Assets (As of June 30, 2025) | Item | Carrying Amount as of June 30, 2025 (RMB thousands) | Fair Value as of June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | | Equity investments designated at fair value | 54,018 | 54,018 | | Financial assets at fair value through profit or loss | 181,167 | 181,167 | | Total | 244,823 | 244,704 | - Fair value measurement of financial instruments primarily uses recent transaction methods and discounted cash flow valuation models, with most classified as **Level 3**[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk) [Events After the Reporting Period](index=62&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Subsequent to the reporting period, on July 21, 2025, the company granted 28,990,000 share options to 236 employees under the employee incentive scheme, with an exercise price of HKD 0.904 per share, subject to service and performance conditions for vesting - On July 21, 2025, the company granted **28,990,000 share options** to 236 employees, with an exercise price of **HKD 0.904 per share**[213](index=213&type=chunk) [Approval of Financial Statements](index=62&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E7%9A%84%E6%89%B9%E5%87%86) The condensed consolidated interim financial information was approved and authorized for issue by the Board of Directors on August 27, 2025 - The condensed consolidated interim financial information was approved and authorized for issue by the Board of Directors on August 27, 2025[214](index=214&type=chunk) [Definitions](index=63&type=section&id=%E9%87%8B%E7%BE%A9) Provides definitions for key terms and abbreviations used in the report, such as '2016 Restricted Share Unit Scheme,' 'the Company,' 'the Group,' and 'Pre-IPO Share Option Scheme' - Provides definitions for key terms and abbreviations used in the report, such as '2016 Restricted Share Unit Scheme,' 'the Company,' 'the Group,' and 'Pre-IPO Share Option Scheme'[216](index=216&type=chunk)[217](index=217&type=chunk)[219](index=219&type=chunk)

截至月份: 2025年8月31日 狀態: 新提交 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 致：香港交易及結算所有限公司 公司名稱: 熙康雲醫院控股有限公司 (於開曼群島註冊成立的有限公司) 呈交日期: 2025年9月4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) | 09686 | 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 | | | 1,500,000,000 | USD | | 0.0002 USD | | 300,000 | | 增加 / 減少 (-) | | | | | | USD | | | | 本月底結存 | | | 1,500,000,000 | USD | | 0.0002 USD | | 300,000 | 本月 ...

Core Insights - The company reported a revenue of 179 million yuan for the first half of 2025, with a 41.4% year-on-year growth in nursing services, becoming a new growth engine for the business [1] - The adjusted net loss narrowed by 25.1% year-on-year to 38.4 million yuan [1] - The company has established a "city cloud hospital platform" as its core business model, connecting over 36,000 medical institutions, including 3,303 hospitals, and 147,000 doctors [1][2] Nursing Services - Nursing services revenue reached 34.62 million yuan, a significant increase of 41.4% year-on-year [2] - Home nursing service visits exceeded 218,000, growing by 53.1% year-on-year [2] - The "Yujian Nursing at Home" platform in Henan province has connected 553 medical institutions, with a 41.4% year-on-year increase, and 53,000 nurses with over 5 years of clinical experience, a 70.9% increase [1][2] Medical Services - The company optimized low-profit business units and focused on specialized operations of internet hospitals, achieving a medical services revenue of 69.83 million yuan [2] - Internet medical service visits reached 2.06 million [2] Health Management - Health management services revenue was 74.15 million yuan, reflecting a 10.5% year-on-year growth, with service visits exceeding 205,000, a 28.1% increase [2] - The company is developing a "1+N" one-stop health management service and an AI-driven tracking system [2] Future Outlook - The company aims to accelerate the construction of a nationwide "home medical care service" network, leveraging its city cloud hospital platform for scalable replication and profit acceleration [3]

Core Insights - The company reported a revenue of 179 million yuan for the first half of 2025, with a significant year-on-year growth of 41.4% in nursing services, becoming a new growth engine for the business. The adjusted net loss narrowed by 25.1% to 38.4 million yuan [1] - The company operates a "city cloud hospital platform" with over 36,000 medical institutions connected, including 3,303 hospitals, marking a 24.5% year-on-year increase. The number of registered doctors and nurses also saw growth, with 147,000 doctors (up 8.0%) and 145,000 nurses (up 34.1%) [1] Nursing Services - The home nursing service segment experienced robust growth, with nursing service revenue reaching 34.62 million yuan, a substantial increase of 41.4% year-on-year. Home nursing service visits exceeded 218,000, reflecting a 53.1% increase, while nursing consultation services reached over 166,000 visits, up 12.9% [1] - The "Yujian Nursing at Home" platform in Henan province has expanded its influence, connecting with 553 medical institutions (up 41.4%) and registering 53,000 nurses (up 70.9%) with over five years of clinical experience [1] Healthcare Services - The company has optimized low-profit business units within its healthcare services, focusing on specialized operations for internet hospitals and building a digital healthcare service system. The healthcare services revenue was 69.83 million yuan, with internet medical service visits reaching 2.06 million, including 942,000 online consultations and 394,000 electronic prescriptions [2] - The health management segment generated 74.15 million yuan in revenue, a year-on-year increase of 10.5%, with service visits exceeding 205,000, reflecting a growth of 28.1% [2] Future Outlook - The company aims to enhance service efficiency and quality through continuous urban network expansion and innovation in service product matrices, laying a solid foundation for nationwide replication and accelerated profitability. The focus will be on building a national "home healthcare service" network based on the city cloud hospital platform [3]

Core Insights - The company reported a revenue of 179 million yuan for the first half of 2025, with a significant year-on-year growth of 41.4% in nursing services, which has become a new growth engine for the business [2] - The adjusted net loss for the period was 38.4 million yuan, representing a year-on-year reduction of 25.1% [2] Business Model and Performance - The company operates on a "city cloud hospital platform" as its core business model, with over 36,000 medical institutions connected to the platform as of June 30, 2025, including 3,303 hospitals, which is a year-on-year increase of 24.5% [2] - The number of registered doctors on the platform reached 147,000, marking an 8.0% year-on-year growth, while the number of registered nurses with over five years of clinical experience reached 145,000, showing a substantial year-on-year increase of 34.1% [2] Revenue Breakdown - In the first half of 2025, the nursing services segment generated a revenue of 34.62 million yuan, reflecting a significant year-on-year increase of 41.4% [2] - The medical services segment reported a revenue of 69.83 million yuan, as the company optimized its structure by focusing on specialized operations of internet hospitals [2] - The health management services segment achieved a revenue of 74.15 million yuan, with a year-on-year growth of 10.5% [2]

Core Insights - The company reported a revenue of 179 million yuan for the first half of 2025, with a significant year-on-year growth of 41.4% in nursing services, marking it as a new growth engine for the business [1] - The adjusted net loss for the period was 38.4 million yuan, which represents a year-on-year reduction of 25.1% [1] Business Model and Performance - The company operates on a "city cloud hospital platform" as its core business model, with over 36,000 medical institutions connected to the platform as of June 30, 2025, including 3,303 hospitals, reflecting a year-on-year growth of 24.5% [1] - The number of registered doctors on the platform reached 147,000, an increase of 8.0% year-on-year, while the number of registered nurses with over five years of clinical experience grew by 34.1% to 145,000 [1] Segment Performance - In the first half of 2025, the nursing services segment generated a revenue of 34.62 million yuan, showing a substantial year-on-year increase of 41.4% [1] - The medical services segment reported a revenue of 69.83 million yuan, as the company optimized its structure by focusing on specialized operations of internet hospitals [1] - The health management services segment achieved a revenue of 74.15 million yuan, reflecting a year-on-year growth of 10.5% [1]

Core Insights - The company reported a revenue of 179 million yuan for the mid-year period of 2025, indicating a significant growth in its operations [1] - The nursing services segment experienced a year-on-year revenue increase of 41.4%, emerging as a new growth driver for the company [1] - The adjusted net loss for the period was 38.4 million yuan, which represents a 25.1% reduction compared to the previous year [1]

Core Viewpoint - The company reported a revenue of 179 million, a year-on-year decrease of 0.34%, and a loss of 49.975 million, which is a reduction of 17.37% compared to the previous year [1] Financial Performance - Revenue for the six months ending June 30, 2025, was 179 million, down 0.34% year-on-year [1] - The company incurred a loss of 49.975 million, which is a 17.37% decrease from the previous year [1] - Adjusted net loss for the period was 38.404 million, reflecting a 25.14% reduction year-on-year [1] - Earnings per share loss was 0.06 [1] Business Strategy - The company leverages advanced AI models and big data analytics to optimize the matching of urban medical resources and healthcare demands [1] - The aim is to enhance the equitable accessibility of resources and build a more efficient regional digital healthcare service ecosystem [1] - Through technological innovation and service upgrades, the company extends professional healthcare services to every household in urban areas, ensuring that home-based medical care is as safe, reliable, and effective as hospital services [1] - The goal is to achieve seamless integration of medical care between home and hospital settings [1]

[Company Overview and Financial Summary](index=1&type=section&id=公司概覽與財務摘要) [Company Basic Information](index=1&type=section&id=1.1%20公司基本信息) Xikang Cloud Hospital Holdings Inc. announced interim results for the six months ended June 30, 2025 - Company Name: **Xikang Cloud Hospital Holdings Inc.** `[2](index=2&type=chunk)` - Stock Code: **9686** `[2](index=2&type=chunk)` - Reporting Period: **Six months ended June 30, 2025** `[2](index=2&type=chunk)` [Financial Summary](index=1&type=section&id=1.2%20財務摘要) Total revenue slightly decreased by 0.3% to RMB 178.6 million, while net loss and adjusted net loss significantly improved Financial Summary for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 178,605 | 179,214 | (609) | | Gross Profit | 39,313 | 42,556 | (3,243) | | Gross Profit Margin | 22.0% | 23.7% | (1.7%) | | Loss for the Period | (49,975) | (60,484) | 10,509 | | Add: Share-based payment expenses | 11,571 | 9,182 | 2,389 | | Adjusted Net Loss for the Period | (38,404) | (51,302) | 12,898 | - The interim results were prepared in accordance with **Hong Kong Accounting Standards** and reviewed by the audit committee and independent auditor `[2](index=2&type=chunk)` [Overall Performance Overview](index=1&type=section&id=1.3%20整體業績概覽) Despite a slight revenue decrease, net loss significantly improved due to optimized resource allocation and production control - Total revenue decreased by **0.3%** year-on-year to **RMB 178.6 million** `[3](index=3&type=chunk)` - Net loss decreased by **17.4%** to **RMB 50.0 million** `[3](index=3&type=chunk)` [Business Review](index=2&type=section&id=一、業務回顧) [City Cloud Hospital Platform Business Model](index=2&type=section&id=2.1%20城市雲醫院平台商業模式) The company focuses on building a "City Cloud Hospital Platform" with government cooperation and AI technology to enhance healthcare accessibility - Committed to building a "City Cloud Hospital Platform" that uses cities as entry points and closely links regional medical and health systems `[4](index=4&type=chunk)` - The core of the business model is **government cooperation**, ensuring platform credibility `[5](index=5&type=chunk)` - Driven by **AI technology**, constructing a digital healthcare service closed-loop of "intelligent matching – precise services – continuous optimization" `[5](index=5&type=chunk)` [Platform Network Scaled Development](index=3&type=section&id=2.2%20平台網絡規模化發展) Leveraging the "Ningbo Model," the company rapidly expanded its city cloud hospital platform network, significantly increasing connected institutions and professionals - The "Ningbo Model" is highly replicable, providing a standardized implementation path for national business expansion `[6](index=6&type=chunk)` Platform Network Scale Growth (as of June 30, 2025) | Metric | June 30, 2025 | June 30, 2024 | Year-on-year Growth | | :--- | :--- | :--- | :--- | | Connected Medical Institutions | Over 36,000 | - | - | | Of which Hospitals | 3,303 | 2,654 | 24.5% | | Registered Doctors | 147,000 | 137,000 | 8.0% | | Registered Nurses (with 5+ years clinical experience) | 145,000 | 108,000 | 34.1% | [Internet+ Nursing Services](index=3&type=section&id=2.3%20互聯網%2B護理服務) As a leading "Internet+ Nursing Services" platform, the company achieved high service volume growth through a "home-based medical nursing service" strategy - Core strategic positioning as "home-based medical nursing services," continuously deepening cooperation with multiple provincial and municipal governments in China `[7](index=7&type=chunk)` - Formed a synergistic development pattern of "**provincial benchmark demonstration + municipal rapid replication**" `[7](index=7&type=chunk)` Nursing Service Volume Growth (for the six months ended June 30, 2025) | Service Type | 2025 (person-times) | 2024 (person-times) | Year-on-year Growth | | :--- | :--- | :--- | :--- | | Home Nursing Services | Over 218,000 | Over 142,000 | 53.1% | | Nursing Consultation Services | Over 166,000 | Over 147,000 | 12.9% | [Platform Ecosystem and Specialized Operations](index=3&type=section&id=2.4%20平台生態與專科化運營) The company integrates AI and big data to build a comprehensive "medical + nursing + health management" platform, offering specialized and personalized services - Deeply integrating **AI and big data technologies** to build an intelligent service platform covering "medical + nursing + health management" scenarios `[8](index=8&type=chunk)` - Optimized specialized medical and nursing solutions for home scenarios, including **obstetrics and gynecology, pediatrics, traditional Chinese medicine, rehabilitation, and neurology** `[8](index=8&type=chunk)` [Segment Business Revenue Analysis](index=4&type=section&id=2.5%20分部業務收入分析) During the reporting period, medical service revenue decreased, while nursing and health management service revenues grew, indicating ongoing business structure optimization Revenue by Business Segment (for the six months ended June 30) | Segment | 2025 Revenue (RMB thousand) | 2025 Share | 2024 Revenue (RMB thousand) | 2024 Share | | :--- | :--- | :--- | :--- | :--- | | Medical Services | 69,827 | 39.1% | 87,615 | 48.9% | | Nursing Services | 34,624 | 19.4% | 24,478 | 13.7% | | Health Management Services | 74,154 | 41.5% | 67,121 | 37.4% | | **Total** | **178,605** | **100.0%** | **179,214** | **100.0%** | [Medical Services](index=5&type=section&id=2.5.1%20醫療服務) Medical service revenue decreased by 20.3% due to structural optimization of low-profit businesses and increased market competition, despite growth in internet hospital construction - Medical service revenue decreased by **20.3%** to **RMB 69.8 million** `[11](index=11&type=chunk)[17](index=17&type=chunk)` - Proactively optimized the structure of some low-profit business units, leading to a phased decrease in business volume `[11](index=11&type=chunk)[16](index=16&type=chunk)` Internet Medical Service Volume (for the six months ended June 30, 2025) | Service Type | 2025 (person-times) | 2024 (person-times) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Total Internet Medical Services | 2.06 million | 2.231 million | -7.7% | | Online Consultation Services | 942,000 | 1.033 million | -8.8% | | Electronic Prescription Services | 394,000 | 373,000 | +5.6% | | Examination and Testing Services | 288,000 | 249,000 | +15.7% | | Telemedicine Services | 436,000 | 576,000 | -24.3% | - Helped **202 hospitals** build internet hospitals through the cloud hospital platform, a **22.4%** year-on-year increase `[17](index=17&type=chunk)` [Nursing Services](index=7&type=section&id=2.5.2%20護理服務) Nursing service revenue grew by 41.4%, driven by market promotion, rapid replication of professional operations, and AI-enabled efficiency improvements - Nursing service revenue increased by **41.4%** to **RMB 34.6 million** `[11](index=11&type=chunk)[23](index=23&type=chunk)` - Home nursing service volume exceeded **218,000 person-times**, a **53.1%** year-on-year increase `[22](index=22&type=chunk)` - Launched the nursing AI intelligent agent "**Xiao Xi Assistant**" to improve service efficiency and user experience `[22](index=22&type=chunk)` - Service items increased to **over 220**, focusing on specialized nursing for the elderly, maternal and child, chronic disease, and post-operative populations `[23](index=23&type=chunk)` [Health Management Services](index=8&type=section&id=2.5.3%20健康管理服務) Health management service revenue grew by 10.5% due to increased service volume, with the company enhancing precision and intelligence through AI and "1+N" models - Health management service revenue increased by **10.5%** to **RMB 74.2 million** `[11](index=11&type=chunk)[25](index=25&type=chunk)` - Health management service volume exceeded **205,000 person-times**, a **28.1%** year-on-year increase `[25](index=25&type=chunk)` - Innovatively launched digital tools such as the "**AI Medical Assistant Xiaokang**" intelligent analysis system and "**Whole Body Health Map**" `[25](index=25&type=chunk)` [Business Outlook](index=9&type=section&id=二、業務前景) [Industry Opportunities and Challenges](index=9&type=section&id=3.1%20行業機遇與挑戰) China's healthcare industry faces demographic pressures and expanding market demand, alongside policy support and technological innovation - China's healthcare industry faces dual pressures of **aging and declining birth rates**, with continuously expanding market demand `[26](index=26&type=chunk)` - Policy dividends are accelerating, and technological innovation continues to empower industry development `[26](index=26&type=chunk)` [Strategic Direction and Core Trends](index=9&type=section&id=3.2%20戰略方向與核心趨勢) The company will focus on "AI + full-course disease management" and "universal home-based medical care" to build a national network of home-based medical nursing services - Closely focusing on the core trends of "**AI + full-course disease management**" and "**universal home-based medical care**" `[26](index=26&type=chunk)` - Accelerating the deployment and expansion of the city cloud hospital platform within the smart healthcare ecosystem to form a scaled service network `[27](index=27&type=chunk)` [AI and Big Data Technology Integration](index=10&type=section&id=3.3%20AI與大數據技術融合) The company will deeply integrate AI and big data to upgrade its home-based medical nursing service system, creating a full-course intelligent management closed-loop - Deeply integrating **AI and big data technologies** to comprehensively upgrade the "home-based medical nursing service" system `[27](index=27&type=chunk)` - Building a full-course intelligent management closed-loop spanning "**prevention – treatment – rehabilitation**" `[27](index=27&type=chunk)` [Ecosystem Building and Value Empowerment](index=10&type=section&id=3.4%20生態構建與價值賦能) The company aims to break traditional healthcare boundaries, integrate into the elder care industry, and build a "medical + payment + supply chain + data" closed-loop ecosystem - Committed to breaking the spatiotemporal boundaries of traditional medical service models and becoming an ecosystem builder in the new healthcare industry `[28](index=28&type=chunk)` - Building a closed-loop ecosystem of "**medical + payment + supply chain + data**" to better serve C-end users `[28](index=28&type=chunk)` [Financial Performance Analysis](index=11&type=section&id=財務表現分析) [Revenue Analysis](index=11&type=section&id=4.1%20收入分析) Total customer contract revenue slightly decreased by 0.3%, with medical service revenue down 20.3%, while nursing and health management services grew by 41.4% and 10.5% respectively [Customer Contract Revenue](index=11&type=section&id=4.1.1%20客戶合約收入) During the reporting period, the company's total customer contract revenue slightly decreased by 0.3% - Total customer contract revenue decreased by **0.3%** from **RMB 179.2 million** to **RMB 178.6 million** `[29](index=29&type=chunk)` [Medical Service Revenue](index=11&type=section&id=4.1.2%20醫療服務收入) Medical service revenue decreased by 20.3%, primarily due to structural optimization of low-profit businesses and increased market competition - Medical service revenue decreased by **20.3%** to **RMB 69.8 million**, mainly attributable to structural optimization of low-profit business units and market competition `[30](index=30&type=chunk)` [Nursing Service Revenue](index=11&type=section&id=4.1.3%20護理服務收入) Nursing service revenue grew by 41.4%, mainly benefiting from market promotion, rapid replication, and AI-enabled operational efficiency improvements - Nursing service revenue increased by **41.4%** to **RMB 34.6 million**, mainly attributable to market promotion, rapid replication, and AI empowerment improving operational efficiency `[31](index=31&type=chunk)` [Health Management Service Revenue](index=11&type=section&id=4.1.4%20健康管理服務收入) Health management service revenue grew by 10.5%, primarily due to an increase in service volume - Health management service revenue increased by **10.5%** to **RMB 74.2 million**, mainly attributable to an increase in health management service volume `[32](index=32&type=chunk)` [Cost and Gross Profit](index=11&type=section&id=4.2%20成本與毛利) Cost of sales and services increased by 1.9%, gross profit decreased by 7.6%, and gross profit margin fell from 23.7% to 22.0%, mainly due to the higher proportion of medical service revenue and its declining margin [Cost of Sales and Services](index=11&type=section&id=4.2.1%20銷售及服務成本) Cost of sales and services increased by 1.9% year-on-year, mainly influenced by increased revenue from nursing and health management services - Cost of sales and services increased by **1.9%** to **RMB 139.3 million**, mainly attributable to increased revenue from nursing and health management services `[33](index=33&type=chunk)` [Gross Profit and Gross Profit Margin](index=11&type=section&id=4.2.2%20毛利及毛利率) Gross profit decreased by 7.6%, and gross profit margin declined by 1.7 percentage points, primarily due to the higher proportion of medical service revenue and its reduced margin - Gross profit decreased by **7.6%** to **RMB 39.3 million** `[34](index=34&type=chunk)` - Gross profit margin decreased from **23.7%** to **22.0%**, mainly attributable to the higher proportion of medical service revenue, where the gross profit margin decreased compared to the same period last year `[34](index=34&type=chunk)` Gross Profit Margin by Segment (for the six months ended June 30) | Segment | 2025 Gross Profit Margin | 2024 Gross Profit Margin | | :--- | :--- | :--- | | Medical Services | 13.3% | 17.7% | | Nursing Services | 19.1% | 26.6% | | Health Management Services | 31.6% | 30.5% | [Expense Analysis](index=12&type=section&id=4.3%20費用分析) Selling and distribution, R&D, and administrative expenses all decreased, reflecting the company's continuous efforts in production control and organizational efficiency optimization [Selling and Distribution Expenses](index=12&type=section&id=4.3.1%20銷售及分銷開支) Selling and distribution expenses decreased by 17.0%, benefiting from strengthened production control and improved resource allocation efficiency - Selling and distribution expenses decreased by **17.0%** to **RMB 31.0 million**, mainly attributable to continuous strengthening of production control and ongoing improvement in resource allocation efficiency `[35](index=35&type=chunk)` [Research and Development Expenses](index=12&type=section&id=4.3.2%20研發開支) R&D expenses decreased by 8.0%, also benefiting from strengthened production control and improved resource allocation efficiency - Research and development expenses decreased by **8.0%** to **RMB 19.6 million**, mainly attributable to continuous strengthening of production control and ongoing improvement in resource allocation efficiency `[36](index=36&type=chunk)` [Administrative Expenses](index=12&type=section&id=4.3.3%20行政開支) Administrative expenses slightly decreased by 1.0%, primarily due to optimized organizational efficiency, leading to reduced personnel and related costs - Administrative expenses decreased by **1.0%** to **RMB 43.3 million**, mainly attributable to continuous optimization of organizational efficiency, resulting in reduced personnel and related costs `[37](index=37&type=chunk)` [Other Financial Items](index=12&type=section&id=4.4%20其他財務項目) Other income significantly decreased, net other gains substantially increased, net finance costs grew, share of loss of associates decreased, and income tax credit increased [Other Income](index=12&type=section&id=4.4.1%20其他收入) Other income significantly decreased by 74.3%, mainly due to reduced government grants and investment income from wealth management products - Other income decreased by **74.3%** to **RMB 3.3 million**, mainly attributable to reduced government grants and investment income from wealth management products `[38](index=38&type=chunk)` [Net Other Gains](index=12&type=section&id=4.4.2%20其他收益淨額) Net other gains significantly increased, primarily due to increased gains from the disposal of an associate - Net other gains increased from **RMB 0.4 million** to **RMB 4.9 million**, mainly due to increased gains from the disposal of an associate `[39](index=39&type=chunk)` [Finance Income and Costs](index=12&type=section&id=4.4.3%20融資收入及成本) Net finance costs (finance costs less finance income) increased by 12.2%, primarily due to a decrease in interest income - Net finance costs (finance costs less finance income) increased by **12.2%** to **RMB 6.2 million**, mainly attributable to a decrease in interest income `[40](index=40&type=chunk)` [Share of Loss of Associates](index=12&type=section&id=4.4.4%20聯營公司應佔虧損) Share of loss of associates decreased by 5.2%, primarily due to a reduction in the losses of associates - Share of loss of associates decreased by **5.2%** to **RMB 4.7 million**, mainly attributable to a decrease in the losses of associates `[41](index=41&type=chunk)` [Income Tax Credit](index=12&type=section&id=4.4.5%20所得稅抵免) Income tax credit increased, primarily due to an increase in deferred income tax credit - Income tax credit increased to **RMB 0.3 million**, mainly attributable to an increase in deferred income tax credit `[42](index=42&type=chunk)` [Loss for the Period and Adjusted Net Loss](index=13&type=section&id=4.5%20期內虧損與經調整淨虧損) Loss for the period decreased by 17.4% year-on-year, and adjusted net loss decreased by 25.1%, driven by nursing business scale, improved efficiency, AI empowerment, and reduced impairment losses - Loss for the period decreased by **17.4%** from **RMB 60.5 million** to **RMB 50.0 million** `[43](index=43&type=chunk)` - Adjusted net loss (a non-HKFRS measure) decreased by **25.1%** to **RMB 38.4 million** `[46](index=46&type=chunk)` - The decrease in adjusted net loss was mainly attributable to the scale effect of the nursing business, improved organizational efficiency, AI empowerment enhancing operational efficiency, and a decrease in net impairment losses on financial assets `[46](index=46&type=chunk)` [Financial Position and Liquidity](index=14&type=section&id=財務狀況與流動性) [Contingent Liabilities and Capital Expenditures](index=14&type=section&id=5.1%20或有負債與資本開支) As of the end of the reporting period, the company had no significant contingent liabilities, and capital expenditures were primarily for property, plant, and equipment - As of June 30, 2025, the Group had no significant contingent liabilities `[48](index=48&type=chunk)` - During the reporting period, capital expenditures of **RMB 4.1 million** were mainly used for the purchase of property, plant, and equipment `[49](index=49&type=chunk)` [Pledge of Assets and Future Investment Plans](index=14&type=section&id=5.2%20資產質押與未來投資計劃) The company had no pledged assets as of the reporting period, and future major investment plans are related to the use of proceeds from the global offering - As of June 30, 2025, the Group had no pledged assets `[50](index=50&type=chunk)` - Except for the use of proceeds from the global offering, as of June 30, 2025, the Group had no other plans for significant investments or capital assets `[51](index=51&type=chunk)` [Liquidity and Capital Resources](index=14&type=section&id=5.3%20流動資金及資本資源) The company primarily funds operations through bank borrowings and equity financing, with cash and cash equivalents of RMB 490.8 million, and expects to utilize global offering proceeds - As of June 30, 2025, cash and cash equivalents amounted to **RMB 490.8 million** `[52](index=52&type=chunk)` - It is expected that part of the proceeds from the global offering will be used to fund working capital requirements `[52](index=52&type=chunk)` [Cash Flow Analysis](index=15&type=section&id=5.4%20現金流量分析) During the reporting period, net decrease in cash and cash equivalents was RMB 268.3 million, with decreased net cash used in operating activities, significantly increased net cash used in investing activities, and increased net cash used in financing activities Cash Flow (for the six months ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash used in operating activities | (49,961) | (64,306) | | Net cash used in investing activities | (147,517) | (6,519) | | Net cash used in financing activities | (70,843) | (33,783) | | Net decrease in cash and cash equivalents | (268,321) | (104,608) | | Cash and cash equivalents at end of period | 490,789 | 575,930 | [Operating Cash Flow](index=15&type=section&id=5.4.1%20經營活動現金流) Net cash used in operating activities was RMB 50.0 million, reflecting cash used in operations and other cash item changes - Net cash used in operating activities was **RMB 50.0 million** `[54](index=54&type=chunk)` [Investing Cash Flow](index=15&type=section&id=5.4.2%20投資活動現金流) Net cash used in investing activities significantly increased to RMB 147.5 million, primarily due to subscriptions for wealth management products - Net cash used in investing activities was **RMB 147.5 million**, mainly attributable to subscriptions for wealth management products of **RMB 395.0 million**, partially offset by redemptions of wealth management products of **RMB 251.4 million** `[55](index=55&type=chunk)` [Financing Cash Flow](index=15&type=section&id=5.4.3%20融資活動現金流) Net cash used in financing activities was RMB 70.8 million, primarily due to repayment of borrowings - Net cash used in financing activities was **RMB 70.8 million**, mainly attributable to repayment of borrowings of **RMB 290.8 million**, partially offset by proceeds from bank borrowings of **RMB 244.0 million** `[56](index=56&type=chunk)` [Borrowings](index=15&type=section&id=5.5%20借款情況) As of the reporting period, total principal balance of borrowings was RMB 463.1 million, with RMB 30.7 million in undrawn bank facilities, and most borrowings maturing by June 2026 - As of June 30, 2025, the total principal balance of borrowings was **RMB 463.1 million** `[57](index=57&type=chunk)` - As of June 30, 2025, bank facilities of **RMB 30.7 million** remained undrawn `[57](index=57&type=chunk)` [Significant Investments and Capital Commitments](index=16&type=section&id=重大投資與資本承擔) [Significant Investments Held](index=16&type=section&id=6.1%20持有的重大投資) The company holds significant investments in Neusoft Management Consulting (Shanghai) Co., Ltd. and wealth management products to enhance capital efficiency and generate synergies Significant Investment Details (as of June 30, 2025) | Investee Company Name | Main Business | Investment Cost (RMB thousand) | Shareholding Percentage | Carrying Amount (RMB thousand) | Percentage of Total Group Assets | Share of Loss of Associates (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Neusoft Management Consulting (Shanghai) Co., Ltd. | Enterprise consulting services, including medical equipment | 96,436 | 49.00% | 85,330 | 7.68% | (1,190) | - As of June 30, 2025, the Group held wealth management products amounting to **USD 20.1 million**, with a fair value of **USD 20.2 million**, representing **13.0%** of the Group's total assets `[59](index=59&type=chunk)` [Capital Commitments](index=16&type=section&id=6.2%20資本承擔) As of the end of the reporting period, the company had no significant capital commitments - As of June 30, 2025, the Group had no significant capital commitments `[60](index=60&type=chunk)` [Significant Acquisitions and Disposals of Subsidiaries, Associates, and Joint Ventures](index=17&type=section&id=6.3%20附屬公司、聯營公司及合資企業的重大收購及出售) The company completed a partial equity transfer and capital increase in Dalian Yunshe, reducing its shareholding and reclassifying it as an equity investment at fair value through other comprehensive income - Xikang Health Technology, a wholly-owned subsidiary of the Company, sold **RMB 32,757,364** of Dalian Yunshe's registered capital, representing approximately **4.23%** of Dalian Yunshe's total share capital, for a consideration of **RMB 30 million** `[61](index=61&type=chunk)` - Following the equity transfer and capital increase arrangements, the Company holds **RMB 58,982,636** of Dalian Yunshe's registered capital, representing approximately **7.15%** of Dalian Yunshe's total share capital `[61](index=61&type=chunk)` - The Group's equity interest in Dalian Yunshe has been reclassified as an equity investment designated at fair value through other comprehensive income `[104](index=104&type=chunk)` [Risk Management](index=17&type=section&id=風險管理) [Foreign Exchange Risk](index=17&type=section&id=7.1%20外匯風險) The company primarily operates in China with most transactions settled in RMB, and management believes there are no significant foreign exchange risks - The functional currencies of the Company and its subsidiaries operating in China are USD and RMB, respectively, with most transactions settled in RMB `[63](index=63&type=chunk)` - Management believes that the Company's business does not face any significant foreign exchange risk `[63](index=63&type=chunk)` [Gearing Ratio](index=17&type=section&id=7.2%20資本負債比率) As of June 30, 2025, the Group's gearing ratio was 9.3% - As of June 30, 2025, the Group's gearing ratio was **9.3%** `[64](index=64&type=chunk)` [Cash Flow and Fair Value Interest Rate Risk](index=17&type=section&id=7.3%20現金流量及公允價值利率風險) The company's revenue and operating cash flows are largely unaffected by market interest rate changes - Revenue and operating cash flows are largely unaffected by market interest rate changes, and there are no significant interest-bearing assets other than investments in wealth management products `[65](index=65&type=chunk)` [Corporate Governance and Other Information](index=18&type=section&id=公司治理與其他信息) [Purchase, Sale or Redemption of the Company's Listed Securities](index=18&type=section&id=8.1%20購買、出售或贖回本公司上市證券) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities on the Stock Exchange - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's securities listed on The Stock Exchange of Hong Kong Limited `[66](index=66&type=chunk)` [Employees and Remuneration Policy](index=18&type=section&id=8.2%20僱員及薪酬政策) As of June 30, 2025, the company had 834 full-time employees, with staff costs of RMB 74.9 million, and is committed to a competitive and fair remuneration system with comprehensive benefits and training - As of June 30, 2025, the Company had **834** full-time employees `[67](index=67&type=chunk)` Employee Functional Distribution (as of June 30, 2025) | Function | Number of Employees | Percentage of Total | | :--- | :--- | :--- | | Management and Administration | 138 | 16.5% | | Sales, Marketing, and Operations Support | 204 | 24.5% | | Research and Development | 151 | 18.1% | | Health Management | 341 | 40.9% | | **Total** | **834** | **100.0%** | - Staff costs paid to employees amounted to **RMB 74.9 million** (for the six months ended June 30, 2024: RMB 86.6 million) `[67](index=67&type=chunk)` [Events After Reporting Period](index=19&type=section&id=8.3%20報告期後事項) After the reporting period, the company granted 28,990,000 share options to 236 eligible participants on July 21, 2025 - Pursuant to the Post-IPO Share Option Scheme, the Company granted a total of **28,990,000 share options** to **236 eligible participants** on July 21, 2025 `[69](index=69&type=chunk)` [Compliance with Corporate Governance Code](index=19&type=section&id=8.4%20遵守《企業管治守則》) The company has complied with the code provisions of the Corporate Governance Code throughout the reporting period and up to the date of this announcement - The Company has complied with the code provisions of the Corporate Governance Code throughout the reporting period and up to the date of this results announcement `[72](index=72&type=chunk)` [Use of Proceeds from Global Offering](index=19&type=section&id=8.5%20全球發售所得款項用途) Net proceeds from the global offering were approximately HKD 554.5 million, primarily for expanding the cloud hospital platform, enriching products, R&D, potential M&A, and working capital, with some idle funds used for wealth management products - The net proceeds from the global offering were approximately **HKD 554.5 million** (assuming the over-allotment option was not exercised) `[73](index=73&type=chunk)` Use of Proceeds from Global Offering (as of June 30, 2025) | Use of Proceeds | Percentage of Proceeds | Net Proceeds (HKD million) | Unused Amount as of Jan 1, 2025 (HKD million) | Amount Used for the Six Months Ended June 30, 2025 (HKD million) | Unused Amount as of June 30, 2025 (HKD million) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Expand city-entry cloud hospital platform to enlarge medical network and user base | 30% | 166.3 | 150.1 | 13.9 | 136.2 | By December 31, 2028 | | Enrich products across the industry value chain to provide more professional and diverse healthcare services | 25% | 138.6 | 128.5 | 6.4 | 122.1 | By December 31, 2028 | | R&D of technology infrastructure and data processing capabilities | 25% | 138.6 | 117.7 | 19.7 | 98.0 | By December 31, 2028 | | Potential M&A opportunities | 10% | 55.5 | 55.5 | 0.0 | 55.5 | By December 31, 2028 | | Working capital and other general corporate purposes | 10% | 55.5 | 44.7 | 7.7 | 37.0 | By December 31, 2028 | - Intends to use idle proceeds of no more than **USD 40 million** to purchase highly secure, liquid, and redeemable wealth management products for cash management `[74](index=74&type=chunk)` [Interim Dividend](index=21&type=section&id=8.6%20中期股息) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2025 `[76](index=76&type=chunk)` [Compliance with Model Code](index=21&type=section&id=8.7%20遵守《標準守則》) All Directors confirmed full compliance with the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period and up to the date of the results announcement - Following specific enquiries made to all Directors, all Directors confirmed that they had fully complied with all relevant requirements set out in the Model Code throughout the reporting period and up to the date of this results announcement `[77](index=77&type=chunk)` [Auditor's Scope of Work and Audit Committee](index=21&type=section&id=8.8%20核數師的工作範圍與審計委員會) The Group's interim condensed consolidated financial statements have been agreed by Ernst & Young to match the unaudited interim financial statements and reviewed by the Audit Committee - The figures in the Group's interim condensed consolidated statement of financial position, interim condensed consolidated statement of profit or loss and other comprehensive income, and related notes for the six months ended June 30, 2025, as set out in this results announcement, have been agreed by Ernst & Young, the Group's auditor, to be consistent with the amounts set out in the Group's unaudited interim financial statements `[78](index=78&type=chunk)` - The Company's Audit Committee has reviewed the Company's interim results for the six months ended June 30, 2025 `[79](index=79&type=chunk)` [Notes to the Interim Condensed Consolidated Financial Statements](index=26&type=section&id=中期簡明綜合財務報表附註) [General Information](index=26&type=section&id=9.1%20一般資料) Xikang Cloud Hospital Holdings Inc., incorporated in the Cayman Islands on May 12, 2011, primarily provides medical, nursing, and health management services in China - Xikang Cloud Hospital Holdings Inc. was incorporated as an exempted company in the Cayman Islands on May 12, 2011, under the Companies Act of the Cayman Islands `[84](index=84&type=chunk)` - The Group is principally engaged in providing medical services, nursing services, and health management services in the People's Republic of China `[84](index=84&type=chunk)` [Basis of Preparation and Significant Accounting Policies](index=26&type=section&id=9.2%20擬備基準與重要會計政策) The interim condensed consolidated financial information is prepared under HKAS 34, with newly adopted HKFRS amendments having no significant impact on financial information - The interim condensed consolidated financial information for the six months ended June 30, 2025, has been prepared in accordance with **Hong Kong Accounting Standard 34 "Interim Financial Reporting"** `[85](index=85&type=chunk)` - The revised Hong Kong Financial Reporting Standards accounting standards were adopted for the first time in this period's financial information, but these amendments had no impact on the interim condensed consolidated financial information `[86](index=86&type=chunk)[87](index=87&type=chunk)` [Operating Segment Information](index=27&type=section&id=9.3%20經營分部資料) This section provides detailed revenue, cost of sales, and gross profit data for the three operating segments: medical, nursing, and health management services, reflecting their profitability Operating Segment Gross Profit (for the six months ended June 30) | Segment | 2025 Gross Profit (RMB thousand) | 2024 Gross Profit (RMB thousand) | | :--- | :--- | :--- | | Medical Services | 9,306 | 15,536 | | Nursing Services | 6,601 | 6,523 | | Health Management Services | 23,406 | 20,497 | | **Total** | **39,313** | **42,556** | [Revenue and Other Income](index=28&type=section&id=9.4%20收入及其他收入) This section details the classification of customer contract revenue (by geographical market and timing of recognition) and the composition of other income, including government grants and wealth management investment returns Disaggregated Revenue from Contracts with Customers (for the six months ended June 30, 2025) | Segment | Mainland China (RMB thousand) | Recognized at a point in time (RMB thousand) | Recognized over time (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Medical Services | 69,827 | 67,210 | 2,617 | 69,827 | | Nursing Services | 34,624 | 34,500 | 124 | 34,624 | | Health Management Services | 74,154 | 74,009 | 145 | 74,154 | | **Total** | **178,605** | **175,719** | **2,886** | **178,605** | Other Income Components (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Government grants | 1,620 | 7,732 | | Investment return from wealth management products | 1,568 | 4,872 | | VAT refunds and VAT reductions | – | 127 | | Service fee refunds for withheld individual income tax | 105 | 91 | | Other items | – | 9 | | **Total** | **3,293** | **12,831** | [Loss Before Tax](index=29&type=section&id=9.5%20稅前虧損) This section lists the main expenses and gains contributing to the loss before tax, including cost of sales, depreciation, amortization, employee benefit expenses, and net impairment of financial and contract assets Key Components of Loss Before Tax (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of sales of hardware, software, raw materials, etc. | 108,619 | 110,765 | | Depreciation of property, plant and equipment | 4,222 | 4,046 | | Depreciation of right-of-use assets | 10,442 | 10,824 | | Amortization of intangible assets | 313 | 344 | | Total employee benefit expenses | 86,439 | 95,763 | | Net impairment (reversal) / impairment of financial and contract assets | (7,781) | 3,619 | [Finance Income and Costs](index=30&type=section&id=9.6%20融資收入及成本) This section analyzes the company's finance income and costs, primarily comprising interest income, interest on bank borrowings, and interest on lease liabilities Finance Income and Costs Analysis (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Finance income: Interest income | 5,715 | 8,498 | | Finance costs: Interest on bank borrowings | (10,506) | (11,945) | | Finance costs: Interest on lease liabilities | (1,427) | (2,080) | | Finance costs: Interest on long-term payables | – | (16) | | **Total Finance Costs** | **(11,933)** | **(14,041)** | [Income Tax](index=30&type=section&id=9.7%20所得稅) This section explains the company's income tax rates in Mainland China (including preferential rates for high-tech enterprises) and the specific components of income tax credit - In Mainland China, the Company is subject to a **25%** PRC enterprise income tax rate, but one Chinese subsidiary enjoys a **15%** preferential tax rate as a recognized high-tech enterprise `[95](index=95&type=chunk)` Income Tax Credit Analysis (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current - PRC expense for the period | 1,028 | 306 | | Underprovision in prior periods | 261 | 16 | | Deferred | (1,606) | (465) | | **Total Income Tax Credit** | **(317)** | **(143)** | [Loss Per Share Attributable to Ordinary Equity Holders of the Parent Company](index=31&type=section&id=9.8%20母公司普通股權益持有人應佔每股虧損) This section provides details on the calculation of basic and diluted loss per share attributable to ordinary equity holders of the parent company - Basic and diluted loss per share was **RMB (0.06)** (2024: RMB (0.07)) `[81](index=81&type=chunk)[99](index=99&type=chunk)` - The weighted average number of ordinary shares outstanding during the period was **841,876,805** shares `[99](index=99&type=chunk)` [Property, Plant and Equipment](index=31&type=section&id=9.9%20物業、廠房及設備) This section discloses the acquisitions and disposals of property, plant, and equipment during the reporting period - For the six months ended June 30, 2025, the Group acquired assets with a total cost of **RMB 1,201,000** and disposed of assets with a total carrying amount of **RMB 593,000** `[101](index=101&type=chunk)` [Right-of-Use Assets](index=31&type=section&id=9.10%20使用權資產) This section discloses the acquisitions and partial or full terminations of right-of-use assets during the reporting period - For the six months ended June 30, 2025, the Group acquired assets with a total cost of **RMB 5,426,000** and partially or fully terminated assets with a total carrying amount of **RMB 2,243,000**, resulting in a net gain of **RMB 103,000** `[102](index=102&type=chunk)` [Investments in Associates](index=31&type=section&id=9.11%20投資聯營公司) This section details the opening and closing balances and changes in investments in associates, including the disposal of a partial equity interest in Dalian Yunshe and its accounting treatment change Changes in Investments in Associates (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Opening balance | 169,559 | 186,993 | | Share of loss of associates | (4,670) | (17,434) | | Disposal of partial equity interest in an associate | (79,559) | – | | **Closing balance** | **85,330** | **169,559** | - The Group's shareholding in Dalian Yunshe decreased from approximately **11.83%** to **7.15%** and has been reclassified as an equity investment designated at fair value through other comprehensive income `[104](index=104&type=chunk)` [Long-term Trade Receivables](index=32&type=section&id=9.12%20長期貿易應收款項) This section provides the net carrying amount and aging analysis of long-term trade receivables, primarily related to smart healthcare product sales contracts - The net carrying amount of long-term trade receivables was **RMB 3,314 thousand** `[105](index=105&type=chunk)[106](index=106&type=chunk)` - The total consideration for long-term trade receivables will be collected within **13 months to 10 years** `[105](index=105&type=chunk)` [Trade Receivables](index=33&type=section&id=9.13%20貿易應收款項) This section details the net carrying amount, impairment reversal, aging distribution, and amounts due from related parties for trade receivables - The net carrying amount of trade receivables was **RMB 87,799 thousand**, with an impairment reversal of **RMB 11,144 thousand** `[107](index=107&type=chunk)[110](index=110&type=chunk)` - Trade receivables include amounts due from related parties of the Group totaling **RMB 5,429 thousand** `[108](index=108&type=chunk)` [Trade Payables](index=34&type=section&id=9.14%20貿易應付款項) This section provides the total amount and aging analysis of trade payables - Total trade payables amounted to **RMB 162,721 thousand** `[111](index=111&type=chunk)` [Dividends](index=34&type=section&id=9.15%20股息) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors of the Company resolved not to declare an interim dividend for the six months ended June 30, 2025 `[112](index=112&type=chunk)`

Group 1 - The CEO of Xikang Cloud Hospital (09686) reduced his holdings by 50,000 shares at a price of HKD 0.9705 per share, totaling approximately HKD 48,500 [1] - After the reduction, the CEO's latest shareholding stands at 40,454,500 shares, representing a holding percentage of 4.81% [1]