[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]

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 40.4545 million shares, representing a holding percentage of 4.81% [1]

Core Viewpoint - The company, Xikang Cloud Hospital, announced a board meeting scheduled for August 27, 2025, to review and approve its interim results for the six months ending June 30, 2025, and to consider the distribution of an interim dividend if applicable [1] Group 1 - The board meeting will take place on August 27, 2025 [1] - The meeting will include the review and approval of the company's interim performance for the six months ending June 30, 2025 [1] - The company will also consider the proposal for an interim dividend during the meeting [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不對因本公告全部或任何部份內容而產生或因倚賴 該等內容而引致之任何損失承擔任何責任。 Xikang Cloud Hospital Holdings Inc. 熙康雲醫院控股有限公司 （前稱Neusoft Xikang Holdings Inc. 東軟熙康控股有限公司） （於開曼群島註冊成立的有限公司） 熙康雲醫院控股有限公司 董事長兼非執行董事 劉積仁博士 中國，2025年8月15日 於本公告日期，本公司董事會由執行董事宗文紅女士；非執行董事劉積仁博士、 徐洪利先生、王楠博士及蒲成川先生；及獨立非執行董事陳艷博士、齊國先博士 及印桂生博士組成。 （股份代號：9686） 董事會召開日期 熙康雲醫院控股有限公司（「本公司」）之董事會（「董事會」）謹此宣佈，本公司將 於2025年8月27日（星期三）舉行董事會會議，其中包括審議及批准本公司及其附 屬公司截至2025年6月30日止六個月之中期業績及其發佈，並建議考慮派發中期 股息（如有）。 承董事會命 ...

截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 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 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8月6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 ...

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

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

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

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