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

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