Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 2,247,282 thousand, representing a 12.9% increase from RMB 1,989,776 thousand in the same period of 2022[2] - Adjusted net loss attributable to owners for the period was RMB 117,351 thousand, a significant reduction of 80.0% compared to RMB 585,909 thousand in the prior year[2] - Gross profit for the six months ended June 30, 2023, was RMB 682,913 thousand, with a gross margin of 30.4%, compared to RMB 664,672 thousand and a margin of 33.4% in the same period of 2022[2] - The company reported a basic and diluted loss per share of RMB 0.08 for the six months ended June 30, 2023, compared to RMB 0.92 in the same period of 2022[2] - The adjusted net loss margin improved to 5.2% for the six months ended June 30, 2023, from 29.3% in the same period of 2022, indicating better operational efficiency[2] - The net profit attributable to the owners of the company for the six months ended June 30, 2023, was a loss of RMB 112,574 thousand, compared to a loss of RMB 578,065 thousand for the same period in 2022[16] - Net loss narrowed by approximately 80% to RMB 117 million, down from a loss of RMB 469 million in the previous year[22] Revenue Breakdown - Revenue from pharmaceutical and healthcare business reached RMB 2,184,609 thousand, up from RMB 1,926,245 thousand, reflecting a growth of 13.4% year-over-year[11] - Total customer contract revenue for the six months ended June 30, 2023, was RMB 2,247,282 thousand, an increase of 12.9% from RMB 1,989,776 thousand for the same period in 2022[11] - Fast drug business revenue amounted to RMB 2,184.6 million, reflecting a 13.4% growth from RMB 1,926.2 million in the previous year[22] - The company's fast drug business reported revenue of RMB 1,606.0 million for the six months ending June 30, 2023, representing a year-on-year increase of 14.8% compared to RMB 1,398.7 million for the same period in 2022[24] - The distribution business achieved revenue of RMB 246.0 million, a 33.8% increase from RMB 183.8 million in the same period last year, driven by an increase in product development and sales partnerships[26] - The online direct sales channel recorded revenue of RMB 1,606.0 million, up 14.8% from RMB 1,398.7 million year-on-year, with registered users reaching 39.2 million[25] - Offline retail revenue was RMB 332.6 million, a slight decrease of 3.2% from RMB 343.7 million in the same period last year[27] - Other business revenue was RMB 62.7 million, showing a minor decrease of 1.4% from RMB 63.5 million year-on-year[28] Expenses and Cost Management - The cost of goods sold for the six months ended June 30, 2023, was RMB 1,550,168 thousand, compared to RMB 1,324,903 thousand for the same period in 2022, representing an increase of 17.0%[12] - Total employee benefit expenses decreased to RMB 261,723 thousand from RMB 379,695 thousand, a reduction of 30.9% year-over-year[12] - Fulfillment expenses increased by 0.8% to RMB 212.4 million, with the percentage of revenue decreasing from 10.6% to 9.5%[37] - Sales and marketing expenses rose by 10.8% to RMB 465.2 million, with the percentage of revenue decreasing from 21.1% to 20.7%[38] - R&D expenses decreased by 33.6% to RMB 30.7 million, with the percentage of revenue dropping from 2.3% to 1.4%[39] - General and administrative expenses decreased by 38.1% to RMB 127.8 million, with the percentage of revenue falling from 10.4% to 5.7%[40] Assets and Liabilities - Total assets as of June 30, 2023, were RMB 3,237,000 thousand, down from RMB 3,297,475 thousand as of December 31, 2022[3] - Total liabilities increased slightly to RMB 1,107,598 thousand from RMB 1,098,279 thousand, reflecting ongoing operational commitments[4] - Trade receivables as of June 30, 2023, totaled RMB 115,276 thousand, an increase from RMB 105,562 thousand as of December 31, 2022[19] - Trade payables increased to RMB 441,726 thousand as of June 30, 2023, compared to RMB 345,904 thousand as of December 31, 2022[20] Cash Flow and Investments - Cash and cash equivalents, including restricted bank deposits, totaled RMB 1,485,597 thousand as of June 30, 2023, compared to RMB 1,331,549 thousand at the end of 2022[3] - Net cash generated from operating activities for the six months ended June 30, 2023, was RMB 210.1 million, significantly up from RMB 22.5 million in the same period last year[49] - Investment activities resulted in a net cash inflow of RMB 95.8 million, primarily due to the redemption of financial assets at fair value through profit or loss[50] - Capital expenditures for the six months ended June 30, 2023, were RMB 7.8 million, down from RMB 17.5 million in the same period of 2022[50] Corporate Strategy and Development - The company continues to focus on expanding its pharmaceutical and healthcare services within China, leveraging its operational base in Beijing[5] - The company plans to enhance its "medical, testing, drug, insurance" ecosystem and focus on core cities for health services expansion[23] - The company aims to leverage technology and policy trends to meet the growing demand for health and pharmaceutical services[22] - The company is focusing on chronic disease management, partnering with Sanofi to provide 24/7 delivery of diabetes medications, with an average delivery time of 28 minutes[30] - The company aims to strengthen its service capabilities in major cities like Beijing, Shanghai, and Shenzhen while expanding its operational scale and service density[33] - The company has established partnerships with over 5,000 pharmaceutical companies to enhance product diversity and improve user access to affordable and quality services[24] Governance and Compliance - The company has committed to high standards of corporate governance, adhering to the corporate governance code as per the Hong Kong Stock Exchange[55] - The company has established an audit committee composed of three independent non-executive directors to oversee financial reporting and risk management[61] - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2023[62] - The financial statements were reviewed by Deloitte according to the International Accounting Standards Board's International Standard on Review Engagements 2410[62] Shareholder Information - The company did not recommend the distribution of an interim dividend for the six months ended June 30, 2023[59] - The company has adopted a share incentive plan involving a total of 87,993,330 shares, representing about 6.56% of the total issued share capital as of June 30, 2023[53] - The newly adopted 2023 Restricted Share Unit Plan allows for up to 26,829,457 shares, accounting for approximately 2.0% of the total issued share capital as of June 30, 2023[53] - The company raised approximately HKD 341.6 million from its global offering, issuing 33,537,000 shares at a price of HKD 12.00 per share[54] - As of June 30, 2023, 45% of the net proceeds (approximately HKD 153.7 million) is allocated for business expansion, including the development of smart pharmacies and enhancing user growth and engagement[54] - 15% of the net proceeds (approximately HKD 51.2 million) is designated for optimizing technology systems and operational platforms[54] - The company plans to utilize 20% of the net proceeds (approximately HKD 68.3 million) for potential investments, acquisitions, or strategic partnerships in the healthcare industry value chain[54] - As of June 30, 2023, the total utilized amount from the net proceeds is HKD 232.4 million, leaving HKD 109.2 million unutilized[54]

Financial Performance - The company reported a significant increase in revenue, achieving a total of $XX million for the fiscal year, representing a YY% growth compared to the previous year[1]. - Total revenue for 2022 reached RMB 4,329,075,000, an increase of 17.7% from RMB 3,678,690,000 in 2021[13]. - Revenue increased by 17.7% from RMB 3,678.7 million in 2021 to RMB 4,329.1 million in 2022, driven by growth in pharmaceutical and healthcare business[32]. - Gross profit for 2022 was RMB 1,449,670,000, up from RMB 1,162,311,000 in 2021, reflecting a gross margin improvement[13]. - Gross margin reached 33.5% for the year ended December 31, 2022, compared to 31.6% in 2021[19]. - The net loss for 2022 was RMB 2,842,275,000, compared to a net loss of RMB 1,598,974,000 in 2021, indicating a worsening financial performance[13]. - Adjusted net loss for 2022 was RMB 128.7 million, compared to RMB 329.5 million in 2021, with an adjusted net loss margin of 3.0%[46]. - The company reported a revenue of HKD 12.00 per share during the public offering, excluding various fees[10]. User Growth and Engagement - User data showed a growth in active users, reaching ZZ million, which is an increase of AA% year-over-year[1]. - The company reported a significant increase in user data, with a growth rate of 25% year-over-year in active users[63]. - The company expanded its user base to 37.5 million registered users across its platforms[22]. - Online direct sales revenue reached RMB 3,091.0 million, a 19.6% increase from RMB 2,583.6 million in 2021, with a total of 61.7 million orders processed[22]. - The company plans to implement a new customer loyalty program, expected to increase repeat purchases by 20%[66]. Strategic Initiatives - The company provided guidance for the next fiscal year, projecting revenue growth of BB% and aiming to reach a total of $CC million[1]. - New product launches are expected to contribute to revenue, with an estimated impact of DD million in the upcoming quarter[1]. - The company is considering strategic acquisitions to enhance its service offerings, with potential targets identified in the healthcare sector[1]. - The company aims to enhance its market presence through strategic partnerships and potential acquisitions in the healthcare sector[12]. - The company is focused on expanding its telemedicine services through the establishment of the Hainan Internet Hospital and Hainan Telemedicine Center[9]. Research and Development - The company is investing in R&D, allocating EE% of its revenue towards the development of new technologies and products[1]. - The company is investing $10 million in R&D for new technologies aimed at improving user experience and operational efficiency[64]. - R&D expenses decreased by 7.5% to RMB 89.0 million in 2022, with the percentage of R&D expenses to revenue falling from 2.6% in 2021 to 2.1% in 2022[37]. Operational Efficiency - The company reported a decrease in operational costs by HH%, improving overall profitability margins[1]. - Fulfillment expenses increased by 7.7% to RMB 444.2 million in 2022, while the percentage of fulfillment expenses to revenue decreased from 11.2% in 2021 to 10.3% in 2022[35]. - Sales and marketing expenses rose by 8.8% to RMB 908.2 million in 2022, with the percentage of these expenses to revenue decreasing from 22.7% in 2021 to 21.0% in 2022[36]. - General and administrative expenses decreased by 30.5% to RMB 334.5 million in 2022, with the percentage of these expenses to revenue dropping from 13.1% in 2021 to 7.7% in 2022[38]. Market Expansion - Market expansion plans include entering new regions, with a target of increasing market share by FF% in the next year[1]. - The company is expanding its market presence in Southeast Asia, targeting a 15% market share by the end of the fiscal year[67]. - The company plans to enhance its digital supply chain layout and smart pharmacy network in 19 core cities to meet the growing demand for localized healthcare services[16]. Sustainability and Corporate Governance - The management emphasized a commitment to sustainability, with plans to reduce carbon emissions by II% over the next five years[1]. - The company is committed to integrating ESG principles into its business strategy, enhancing product safety and information security[15]. - The company has a commitment to maintaining good relationships with stakeholders, which is crucial for its success[83]. - The company has a history of compliance with relevant laws and regulations during the reporting period[84]. - The company is committed to adhering to corporate governance codes as outlined in the listing rules, ensuring transparency and accountability in its operations[109]. Financial Position and Capital Management - The company had no bank borrowings as of December 31, 2022, and therefore did not present a capital liability ratio[51]. - The company raised approximately HKD 341.6 million from the global offering, with 45.0% allocated for business expansion and user growth initiatives, expected to be utilized by December 31, 2024[62]. - The company had no significant capital commitments as of December 31, 2022[54]. - The company maintains a dividend policy that requires sufficient cash reserves to meet operational needs and future growth, with any proposed dividends subject to shareholder approval[182]. Risk Management - The company faces various risks, including regulatory changes and competition in the digital health market[86]. - The company has implemented a comprehensive risk management policy across all aspects of its operations to enhance risk awareness among employees[185]. - The board is responsible for overseeing the effectiveness of the company's risk management and internal control systems, which are designed to manage risks associated with achieving business objectives[185]. Shareholder Structure - The company has a significant concentration of ownership, with the top shareholders collectively holding over 49% of the shares[100]. - The ownership structure indicates potential influence over corporate decisions by major shareholders, particularly Yang Wenlong and associated entities[103]. - As of December 31, 2022, the company’s major shareholder, Yang Wenlong, holds 660,205,360 shares, representing approximately 49.21% of the total issued share capital[105]. Board and Management - The board consists of nine members, including three independent non-executive directors, ensuring a balance of independent opinions[164]. - The company has established three board committees: the audit committee, remuneration committee, and nomination committee, each with defined written terms of reference[174]. - The independent non-executive directors confirmed their independence in accordance with the listing rules[165]. - The company encourages continuous professional development for directors, covering relevant training costs[169].

Financial Performance - Revenue for the year ended December 31, 2022, was RMB 4,329,075 thousand, representing a 17.7% increase from RMB 3,678,690 thousand in 2021[1] - Gross profit for the same period was RMB 1,449,670 thousand, up 24.7% from RMB 1,162,311 thousand in 2021[1] - The net loss for the year was RMB 2,842,275 thousand, a 77.8% increase compared to RMB 1,598,974 thousand in 2021[1] - Adjusted net loss (non-IFRS measure) improved to RMB 128,698 thousand, a 60.9% decrease from RMB 329,525 thousand in 2021[1] - Total revenue for the year ended December 31, 2022, was RMB 4,329,075,000, an increase of 17.7% from RMB 3,678,690,000 in 2021[12] - Revenue from pharmaceutical and healthcare business reached RMB 4,201,618,000, up from RMB 3,561,336,000 in the previous year, reflecting a growth of 18.1%[12] - Total revenue for the year ended December 31, 2022, increased to RMB 4,329.1 million, a year-on-year growth of 17.7% from RMB 3,678.7 million in 2021[30] - Revenue from pharmaceutical and healthcare business rose by 18.0% to RMB 4,201.6 million from RMB 3,561.3 million in 2021[44] Assets and Liabilities - Total assets as of December 31, 2022, amounted to RMB 3,297,475 thousand, compared to RMB 2,946,159 thousand in 2021[7] - Cash and cash equivalents were RMB 1,210,949 thousand, down from RMB 1,552,994 thousand in 2021[6] - Total liabilities decreased to RMB 1,098,279 thousand from RMB 5,535,988 thousand in 2021[7] - Non-current assets totaled RMB 769,888 thousand, an increase from RMB 678,466 thousand in 2021[5] - The company’s equity attributable to owners was RMB 2,185,658 thousand, down from RMB 2,612,247 thousand in 2021[5] - Trade receivables increased to RMB 106,125,000 as of December 31, 2022, up from RMB 91,351,000 in 2021, with an expected credit loss provision of RMB 563,000[21] - Total liabilities increased to RMB 772,817,000 as of December 31, 2022, compared to RMB 586,651,000 in 2021, reflecting a significant rise in trade payables[22] Operational Highlights - The company reported a significant increase in inventory, rising to RMB 607,950 thousand from RMB 434,022 thousand in 2021[6] - Employee benefits expenses totaled RMB 619,446,000, a decrease of 21.5% compared to RMB 789,134,000 in 2021[13] - Interest income from bank deposits increased significantly to RMB 16,730,000 from RMB 3,781,000 in 2021, marking a growth of 341.5%[15] - The company reported a net foreign exchange gain of RMB 14,369,000 for the year, compared to a gain of RMB 11,922,000 in 2021[14] - The total amount of government subsidies received was RMB 7,678,000, slightly down from RMB 8,390,000 in the previous year[15] - The company accumulated 37.5 million registered users through its online platform, with total orders amounting to 61.7 million during the reporting period[33] - Revenue from the online direct sales channel was RMB 3,091.0 million, representing a 19.6% increase from RMB 2,583.6 million in 2021[33] - Offline retail revenue amounted to RMB 674.0 million, reflecting an 18.5% increase from RMB 568.8 million in 2021[35] Strategic Initiatives - The company successfully entered the Hong Kong capital market in 2022, marking a new starting point for digital health service innovation[26] - The company established an ESG management system in 2022 to enhance product safety and information security, contributing value to employees, users, partners, and the public[28] - In 2023, the company aims to enhance the accessibility and convenience of medical and pharmaceutical services through its digital supply chain and smart pharmacy network in 19 core cities[28] - The company plans to increase the proportion of pharmacies included in medical insurance and strengthen the FSC pharmaceutical alliance to improve service capabilities and user engagement[28] - A new five-year plan will be initiated to promote technological and business innovation, focusing on the digital empowerment of physical pharmacies[28] - The company will continue to develop a service ecosystem around "medicine, testing, pharmaceuticals, and insurance" to drive digital transformation in the industry[28] - The company aims to enhance its competitive advantage and market share in the cities where it operates, creating long-term value for users and shareholders[28] - The company emphasizes its commitment to user-centered services and aims to lead in home health services[28] Expenses and Losses - Fulfillment expenses increased by 7.7% to RMB 444.2 million for the year ended December 31, 2022, while the percentage of fulfillment expenses to revenue decreased from 11.2% to 10.3%[47] - Sales and marketing expenses rose by 8.8% to RMB 908.2 million for the year ended December 31, 2022, with the percentage of these expenses to revenue decreasing from 22.7% to 21.0%[48] - R&D expenses decreased by 7.5% to RMB 89.0 million for the year ended December 31, 2022, with the percentage of R&D expenses to revenue declining from 2.6% to 2.1%[49] - General and administrative expenses decreased by 30.5% to RMB 334.5 million for the year ended December 31, 2022, with the percentage of these expenses to revenue dropping from 13.1% to 7.7%[50] - Fair value losses on financial liabilities increased by 174.6% to RMB 2,504.5 million for the year ended December 31, 2022, primarily due to increased fair value losses on preferred shares[51] - Net loss increased by 77.8% to RMB 2,842.3 million for the year ended December 31, 2022, compared to RMB 1,599.0 million for the year ended December 31, 2021[55] - Adjusted net loss for the year ended December 31, 2022, was RMB 128.7 million, with an adjusted net loss margin of 3.0%, compared to an adjusted net loss of RMB 329.5 million and a margin of 9.0% for the year ended December 31, 2021[56] Cash Flow and Capital Expenditure - The net cash used in operating activities for the year ended December 31, 2022, was RMB 237.9 million, compared to RMB 295.5 million in the previous year, primarily due to a pre-tax loss of RMB 2,832.1 million[58] - The net cash used in investing activities for the year ended December 31, 2022, was RMB 353.4 million, mainly due to the purchase of financial assets at fair value through profit or loss amounting to RMB 6,427.6 million[59] - The net cash generated from financing activities for the year ended December 31, 2022, was RMB 232.9 million, primarily from the net proceeds of RMB 325.8 million from the global offering of ordinary shares[60] - The company's capital expenditure for the year ended December 31, 2022, was RMB 30.0 million, slightly up from RMB 29.3 million in 2021[61] - As of December 31, 2022, the company had no bank borrowings and therefore no capital debt ratio[61] Governance and Reporting - The company has adhered to the corporate governance code since its listing on September 14, 2022, with a commitment to high standards of governance[69] - The audit committee, consisting of three independent non-executive directors, has reviewed the audited financial statements for the year ending December 31, 2022[74] - The annual report for the year ending December 31, 2022, will be published on the Hong Kong Stock Exchange and the company's website[75]

Financial Performance - The company reported a significant increase in revenue, achieving a total of HKD 500 million for the first half of 2022, representing a 25% year-over-year growth[1]. - For the six months ended June 30, 2022, the company's total revenue increased to RMB 1,989.8 million, representing a year-on-year growth of 21.1% compared to RMB 1,643.6 million for the same period in 2021[23]. - Revenue increased by 21.1% from RMB 1,643.6 million in the six months ended June 30, 2021, to RMB 1,989.8 million in the six months ended June 30, 2022[35]. - Revenue from pharmaceutical and healthcare business rose by 19.9% from RMB 1,606.0 million to RMB 1,926.2 million during the same period, driven by user base growth and expanded smart pharmacy network[35]. - The net loss reduced by 46.7% from RMB 1,098.4 million for the six months ended June 30, 2021, to RMB 585.9 million for the six months ended June 30, 2022[48]. - Basic and diluted loss per share improved to RMB (0.92) from RMB (3.39) year-over-year[102]. - The company reported a total cost of intangible assets amounting to RMB 251,075 thousand as of June 30, 2022, an increase from RMB 247,015 thousand as of December 31, 2021, reflecting a growth of approximately 1%[136]. User Growth and Market Expansion - User data showed a total of 1.2 million active users on the platform, an increase of 30% compared to the previous year[1]. - The company is expanding its market presence in Southeast Asia, targeting a 15% market share within the next two years[1]. - The company accumulated approximately 35.7 million registered users, with 3.6 million health consultations and inquiries recorded in the online diagnosis business[23]. - The company aims to enhance its operational model by integrating online and offline channels to provide more convenient and professional health service experiences[23]. Product Development and Innovation - New product launches included a telemedicine service that is expected to contribute an additional HKD 100 million in revenue by the end of 2022[1]. - Research and development expenses increased by 40%, focusing on enhancing AI capabilities in healthcare services[1]. - The company plans to continue innovating and enhancing its product offerings, including new technologies and services in smart pharmacies[34]. - The company aims to enhance its DTP (Direct to Patient) services by integrating online consultations with immediate fulfillment systems[32]. Financial Management and Cost Control - The gross margin improved to 60%, up from 55% in the previous year, indicating better cost management[1]. - The gross profit margin improved to 33.4%, up from 30.6% in the same period last year, reflecting an increase of 2.8 percentage points[23]. - Cost of revenue increased by 16.2% to RMB 1,325.1 million, reflecting the rise in sales volume of pharmaceutical and healthcare products[36]. - General and administrative expenses rose by 47.7% to RMB 206.5 million, primarily due to increased share-based payment expenses, which nearly doubled to RMB 136.5 million[41]. Strategic Acquisitions and Partnerships - The company announced plans for a strategic acquisition of a local health tech firm, which is expected to enhance service offerings and increase user base by 10%[1]. - The company has established partnerships with over 4,800 pharmaceutical and distribution companies to enhance product diversity and affordability for users[26]. - The group has expanded its market presence through multiple acquisitions, including a 100% stake in Jiangxi Dingdang E-commerce Co., Ltd. and an 85% stake in Jiangxi Renhe Tang Pharmacy Chain Co., Ltd.[114]. Sustainability and Corporate Governance - The board of directors emphasized the importance of sustainable practices in future operations, aiming for a 30% reduction in carbon footprint by 2025[1]. - The company is committed to responding to national policies and focusing on user-centric services to promote sustainable and standardized development in the digital healthcare sector[23]. - The recent regulatory support from the State Administration for Market Regulation marks a significant endorsement for the internet healthcare industry, guiding it towards a more standardized development era[23]. Shareholder Information and Capital Structure - Major shareholders include Jianxing Limited, Xingxin Limited, Jianfa Limited, and Jinfang Limited, each holding 660,205,360 shares, representing approximately 49.21% of the company's issued share capital[71]. - The company has a structured shareholding arrangement involving various entities to manage voting rights effectively[72]. - The company completed a global offering of 33,537,000 shares at a price of HKD 12 per share[97]. - The company has established rights for preferred shareholders, including preemptive rights and liquidation preferences, ensuring their interests are protected during capital increases and potential liquidation events[159][163]. Cash Flow and Financial Position - Cash and cash equivalents as of June 30, 2022, were RMB 1,526 million, a decrease from RMB 1,553 million as of December 31, 2021, primarily due to lease liability repayments[51]. - Operating cash flow for the six months ended June 30, 2022, was RMB 22.5 million, an improvement from a cash outflow of RMB 45.3 million in the same period last year[53]. - The company reported a cash and cash equivalents balance of RMB 1,526,132 thousand, slightly down from RMB 1,552,994 thousand[103]. - The company’s accumulated losses increased to RMB (3,613,211) thousand from RMB (3,035,146) thousand, reflecting ongoing investment in growth initiatives[103]. Employee and Incentive Plans - The employee incentive plan allows for a total of 87,993,330 shares to be issued, which is approximately 6.56% of the total issued share capital[80]. - The company granted stock options to a total of 94 participants, allowing the purchase of 11,390,000 shares, which represents 0.85% of the total issued shares[82]. - The employee stock option plan granted a total of 11,710,000 shares, with an exercise price of RMB 0.1, which will vest over three years[195].