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 截至月份: 2025年11月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 宏力醫療管理集團有限公司 呈交日期: 2025年12月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 09906 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 3,900,000,000 | HKD | | 0.0001 | HKD | | 390,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 3,900,000,000 | HKD | | 0.0001 | HKD | | 390,000 | 本月底法定/註冊 ...

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 截至月份: 2025年10月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 宏力醫療管理集團有限公司 呈交日期: 2025年11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) | 09906 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 3,900,000,000 | HKD | | 0.0001 | HKD | | 390,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 3,900,000,000 | HKD | | 0.0001 | HKD | | 390,000 | 本月底法定/註冊 ...

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 本月底法定/註冊股本總額： HKD 390,000 致：香港交易及結算所有限公司 公司名稱: 宏力醫療管理集團有限公司 呈交日期: 2025年10月8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) | 09906 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 3,900,000,000 | HKD | | 0.0001 | HKD | | 390,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 3,900,000,000 | HKD | | 0.0001 | HKD | | 390,000 | FF301 第 ...

Market Trends and Opportunities - The healthcare management group reported a significant market trend towards "quality upgrades" and "structural optimization" in the social hospital sector, facing both unprecedented opportunities and severe challenges[18]. - The company noted that policy incentives continue to be released, with increasing emphasis on specialization, digitization, and high-end development paths[18]. - The healthcare sector is experiencing a shift from homogeneous competition to differentiated development, driven by rising consumer demand for high-end medical services and the integration of internet healthcare with traditional services[18]. - The digital transformation in healthcare is becoming essential, with AI-assisted diagnosis, surgical robots, and electronic medical record systems emerging as core competitive technologies[18]. - Investment logic is shifting from scale expansion to value-based healthcare, with capital favoring specialized chains, emerging specialties, and smart healthcare sectors[18]. - The introduction of DRG/DIP payment reforms and international certification requirements has raised industry entry barriers, while differentiated positioning policies provide space for private hospitals to avoid competition with public hospitals[18]. Company Strategy and Focus - The company is adapting to stricter healthcare cost control measures and increasing competition for talent, alongside the expansion of public hospitals[18]. - The company is focusing on expanding its market presence in central and western regions of China, moving away from coastal concentration[18]. - The management team emphasized the importance of compliance capabilities, technological barriers, and brand effects in attracting investment[18]. - The company is committed to enhancing service quality and efficiency through technological empowerment, expanding service boundaries and innovation space[18]. - The group is focusing on a specialized deep cultivation strategy to enhance competitive advantages in key specialty areas[19]. - The group plans to leverage digital transformation, emphasizing AI, big data, and telemedicine to improve healthcare quality and operational efficiency[19]. - The group aims to strengthen its brand through international certifications and transparent operations, integrating brand building with healthcare quality improvement[19]. - The group is actively participating in public health services and charity initiatives, embedding social responsibility into its development strategy[21]. - The group has submitted 30 new technology and project applications, with 13 new technologies passing ethical review, indicating a commitment to research and development[37]. Financial Performance - The group's consolidated revenue for the six months ended June 30, 2025, was RMB 346.8 million, a decrease of RMB 68.4 million or 16.5% compared to RMB 415.2 million for the same period in 2024[24]. - Outpatient visits totaled 717,563, down 31,158 or 4.2% from 748,721 in the previous year[24]. - Inpatient visits decreased to 22,811, a reduction of 6,407 or 21.9% from 29,218 in the previous year[24]. - The average outpatient cost increased by 3.3% to RMB 310.4, while the average inpatient cost decreased by 18.9% to RMB 5,269.5[27]. - The group reported a 15.8% decrease in pharmaceutical sales revenue, totaling RMB 138.8 million compared to RMB 164.7 million in the previous year[38]. - Total revenue decreased by 16.5% from RMB 415.2 million in the six months ended June 30, 2024, to RMB 346.8 million in the six months ended June 30, 2025[41]. - Inpatient medical service revenue fell by 36.7% from RMB 189.9 million to RMB 120.2 million, primarily due to a decrease in inpatient visits and average costs[42]. - Outpatient medical service revenue slightly decreased by 1.0% from RMB 224.9 million to RMB 222.7 million, attributed to a reduction in outpatient visits[42]. - Gross profit decreased by 36.1% from RMB 71.6 million to RMB 45.8 million, with gross margin declining from 17.3% to 13.2%[45]. - Administrative expenses increased by 8.3% from RMB 38.7 million to RMB 41.9 million, mainly due to higher employee benefits and depreciation[47]. - Net financial costs rose from RMB 3.7 million to RMB 4.2 million, primarily due to increased foreign exchange losses[48]. - Income tax expense decreased from RMB 7.8 million to a tax credit of RMB 0.1 million, reflecting a reduction in pre-tax profits[49]. - The company reported a net loss of RMB 0.7 million for the six months ended June 30, 2025, compared to a profit of RMB 20.3 million in the same period of 2024, resulting in a net loss margin of -0.2%[50]. Assets and Liabilities - Current assets increased by 142.0% from RMB 4.6 million to RMB 11.1 million, mainly due to net cash generated from operating activities exceeding cash used in financing activities[52]. - Inventory decreased by 54.6% from RMB 39.6 million to RMB 18.0 million, primarily due to the consumption of stock accumulated for the Spring Festival[53]. - Trade payables decreased from RMB 100.7 million as of December 31, 2024, to RMB 96.0 million as of June 30, 2025, a reduction of RMB 4.7 million due to increased payments during the reporting period[57]. - Accrued expenses and other payables decreased from RMB 107.8 million as of December 31, 2024, to RMB 93.3 million as of June 30, 2025, a decrease of RMB 14.5 million primarily due to increased employee compensation and benefits payments[58]. - The company's debt-to-asset ratio as of June 30, 2025, was 37.3%, down from 40.6% as of December 31, 2024[68]. - The company had no contingent liabilities or guarantees that would significantly impact its financial position or operations as of June 30, 2025[59]. - Lease liabilities related to leased properties amounted to approximately RMB 1.1 million as of June 30, 2025[60]. Cash Flow and Financing Activities - Net cash generated from operating activities increased from RMB 57.3 million for the six months ended June 30, 2024, to RMB 80.7 million for the six months ended June 30, 2025, mainly due to the settlement of receivables from the medical insurance bureau[63]. - Net cash flow from investing activities improved from an outflow of RMB 23.0 million for the six months ended June 30, 2024, to an inflow of RMB 9.0 million for the six months ended June 30, 2025, primarily due to proceeds from the sale of land use rights amounting to RMB 19.1 million[64]. - Net cash used in financing activities increased from RMB 14.0 million for the six months ended June 30, 2024, to RMB 61.3 million for the six months ended June 30, 2025, mainly due to repayment of bank loans of RMB 32.6 million and increased purchases of existing shares under the restricted share unit plan by approximately RMB 17.4 million[65]. - The net increase in cash and cash equivalents was RMB 28.3 million for the six months ended June 30, 2025, compared to RMB 20.4 million for the same period in 2024[62]. - The company did not use any derivative financial instruments to hedge against foreign exchange risks during the reporting period, managing such risks through close monitoring of exchange rate fluctuations[67]. Shareholder Information and Stock Options - Major shareholders include Cao Junming and Sun Mingyan, each holding 384,383,500 shares, representing 64.06% of the total shares[76]. - Rubrical Investment holds 73,595,050 shares, accounting for 12.27% of the total shares[76]. - Sunny Rock has a stake of 310,788,450 shares, which is 51.80% of the total shares[76]. - The total number of shares issued by the company is 600,000,000 as of June 30, 2025[76]. - The stock option plan was approved on June 17, 2020, and is valid for ten years[82]. - The maximum number of shares that can be issued under the stock option plan cannot exceed 30% of the company's issued share capital[85]. - Each participant in the stock option plan is limited to a maximum of 1% of the company's issued share capital in any 12-month period[88]. - Any grant of stock options to connected persons must be approved by independent non-executive directors[89]. - The stock option plan aims to incentivize employees and directors for their contributions to the company[83]. - The company has established a broad participant base for the stock option plan to enhance overall performance and share price[83]. - The total number of shares that may be issued under the share option plan shall not exceed 10% of the shares already issued on the date of listing, amounting to 60,000,000 shares[90]. - The company may seek shareholder approval to expand the general plan limit, but the total number of shares issued under the share option plan cannot exceed 10% of the issued shares as of the approval date[90]. - No share options have been granted, agreed to be granted, exercised, cancelled, or lapsed under the share option plan as of the date of this interim report[94]. Restricted Share Unit Plans - The purpose of the 2022 Restricted Share Unit Plan is to recognize and incentivize participants for their contributions and to attract suitable employees for further development of the group[96]. - Participants in the 2022 Restricted Share Unit Plan include employees or senior officers of the group, including executive, non-executive, and independent non-executive directors[100]. - The total value of shares granted under the plan must exceed HKD 5 million or any higher amount specified by the exchange[97]. - The plan will remain effective for a period of ten years from August 22, 2022, or until an earlier termination date determined by the board or committee[102]. - Unvested restricted share units will be forfeited and automatically cancelled upon certain events, including termination of employment or service[104]. - The company must issue a circular to shareholders regarding any grant of share options to major shareholders or independent non-executive directors, requiring them to abstain from voting[92]. - The exercise price of shares under the share option plan will be determined by the board but shall not be less than HKD 1.00 per option granted[93]. - The total number of existing shares to be purchased under the 2023 Restricted Share Unit Plan will not exceed 5% of the company's issued share capital as of May 9, 2023, which is a maximum of 30,000,000 shares[122]. - The maximum total number of shares involved in granting rewards to selected participants cannot exceed 1% of the company's issued share capital as of May 9, 2023[122]. - As of the date of this interim report, no Restricted Share Units have been granted under the 2023 Restricted Share Unit Plan[123]. - The 2023 Restricted Share Unit Plan was adopted on May 9, 2023, to recognize and incentivize participants for their contributions[110]. - The plan will remain effective for a period of ten years from May 9, 2023, or until an earlier termination date determined by the board or committee[116]. - The committee managing the 2023 Restricted Share Unit Plan has the discretion to grant conditional rights to shares or equivalent cash to selected participants at any time during the plan's term[115]. - Participants in the 2023 Restricted Share Unit Plan include employees of any entity or hospital acquired by the group from the adoption date until the plan's expiration[114]. - The company is prohibited from granting rewards during the period of one month prior to the announcement of financial performance[120]. - The trustee may not hold more than 10% of the total issued shares at any time[122]. - The company will have the right to instruct the trustee to repurchase shares from participants under certain conditions[118]. Global Offering and Utilization of Proceeds - The company raised approximately HKD 264.8 million by issuing 150,000,000 shares at HKD 2.10 per share during the global offering[126]. - As of June 30, 2025, the company has utilized HKD 195.6 million of the net proceeds from the global offering, leaving HKD 69.2 million unutilized[127]. - 29.5% of the net proceeds (HKD 78.0 million) is allocated for the expansion of the company's first-phase building, which is fully utilized[127]. - 26.1% of the net proceeds (HKD 69.2 million) is earmarked for acquiring hospitals to expand the company's business, with no funds utilized yet[127]. Employee Information - Employee costs for the six months ended June 30, 2025, amounted to approximately RMB 107.2 million, a decrease from RMB 118.1 million for the same period in 2024[143]. - The total number of employees as of June 30, 2025, was approximately 1,844, down from 1,953 a year earlier[143]. - The company did not recommend any interim dividend for the six months ended June 30, 2025[142]. - No major investments or acquisitions were made during the reporting period[133]. - The company repurchased a total of 8,962,000 shares at a total cost of approximately HKD 18.90 million during February 2025[132]. - As of June 30, 2025, the unutilized net proceeds from the global offering were deposited as short-term demand deposits[129]. Summary of Financial Metrics - Revenue for the six months ended June 30, 2025, was RMB 346,820,000, a decrease of 16.5% compared to RMB 415,178,000 for the same period in 2024[151]. - Gross profit for the same period was RMB 45,801,000, down 36.1% from RMB 71,621,000 in 2024[151]. - Operating profit decreased significantly to RMB 3,489,000 from RMB 31,833,000, reflecting a decline of 89.0%[151]. - The net loss for the period was RMB 676,000, compared to a profit of RMB 20,263,000 in the previous year[151]. - Total assets as of June 30, 2025, were RMB 894,729,000, down from RMB 974,003,000 at the end of 2024, representing a decrease of 8.1%[154]. - Current assets decreased to RMB 335,963,000 from RMB 384,981,000, a decline of 12.7%[154]. - Cash and cash equivalents increased to RMB 286,780,000 from RMB 258,498,000, an increase of 10.9%[154]. - Total liabilities decreased to RMB 333,918,000 from RMB 395,080,000, a reduction of 15.4%[156]. - The company’s equity attributable to owners decreased to RMB 554,896,000 from RMB 573,005,000, a decline of 3.2%[154]. - The company reported a basic and diluted loss per share of RMB (0.00), compared to earnings per share of RMB 0.04 in the previous year[151]. - For the six months ended June 30, 2025, the operating cash flow generated was RMB 82,485,000, an increase of 21.5% compared to RMB 67,839,000 for the same period in 2024[162]. - The net cash generated from operating activities for the first half of 2025 was RMB 80,653,000, up 40.5% from RMB 57,341,000 in the prior year[162]. - Total revenue for the six months ended June 30, 2025, was RMB 346,820,000, a decrease of 16.5% from RMB 415,178,000 in the same period of 2024[180]. - Revenue from treatment and comprehensive medical services was RMB 204,171,000, down 18.3% from RMB 250,041,000 in the previous year[180]. - The estimated settlement rate for inpatient service revenue was recorded at 86.00%, compared to 93.36% for the year ended December 31, 2024[180]. - Cash and cash equivalents increased by RMB 28,329,000, compared to an increase of RMB 20,404,000 in the same period last year[162]. - The total cash and cash equivalents at the end of the reporting period was RMB 286,780,000, up from RMB 260,203,000 at the end of June 2024[162]. - The company incurred net cash used in financing activities of RMB 61,346,000 for the first half of 2025, compared to RMB 13,962,000 in the same period of 2024[162]. - The company’s borrowings from banks and other financial institutions amounted to RMB 78,400,000, a decrease from RMB 111,000,000 in the previous year[162]. - The company reported a nominal amount of approximately RMB 69,270,000 for inpatient service revenue, expected to be confirmed by the medical insurance bureau in 2026[180]. - The actual final settlement rate for inpatient service revenue in 2024 was 90.46%, a decrease from 98.04% in 2023, resulting in a revenue reduction of RMB 5,037,000 for the six months ending June 30, 2025[181]. - Medical compensation losses amounted to RMB 801,000 for the six months ending June 30, 2025, down from RMB 1,273,000 in the same period of 2024[183]. - Total financial costs for the six months ending June 30, 2025, were RMB 4,198,000, an increase from RMB 3,746,000 in the same period of 2024[184]. - The company reported a loss attributable to owners of RMB 673,000 for the six months ending June 30, 2025, compared to a profit of RMB 20,042,000 in the same period of 2024[192]. - The company did not declare an interim dividend for the six months ending June 30, 2025, consistent with the previous year[194]. - The net book value of property, plant, and equipment as of June 30, 2025, was RMB 496,591,000, down from RMB 525,001,000 at the end of 2024[196]. - The net book value of right-of-use assets as of June 30, 2025, was RMB 54,490,000, unchanged from

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 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 宏力醫療管理集團有限公司 呈交日期: 2025年9月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 09906 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 3,900,000,000 | HKD | | 0.0001 | HKD | | 390,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 3,900,000,000 | HKD | | 0.0001 | HKD | | 390,000 | 本月底法定/註冊股本 ...

Core Viewpoint - Macro Medical Management (09906.HK) reported a significant decline in comprehensive income for the six months ending June 30, 2025, amounting to RMB 346.8 million, a decrease of RMB 68.4 million or 16.5% year-on-year [1] Financial Performance - The company's profit decreased from RMB 20.3 million in the same period last year to a loss of RMB 0.7 million in the current period [1] - The net profit margin for the six months ending June 30, 2024, and June 30, 2025, were 4.9% and -0.2%, respectively [1]

Group 1 - The core viewpoint of the article is that Macro Medical Management (09906) reported a significant decline in its mid-year performance for 2025, with a revenue of 347 million RMB, representing a year-on-year decrease of 16.5% [1] - The company experienced a loss attributable to shareholders of 673,000 RMB, contrasting with a profit of 20.04 million RMB in the same period last year, indicating a shift from profit to loss [1]

[Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%A6%82%E8%A6%81) The company experienced a significant decline in revenue and gross profit for the six months ended June 30, 2025, resulting in a net loss attributable to owners [Key Financial Indicators](index=1&type=section&id=%E5%85%B3%E9%94%AE%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) For the six months ended June 30, 2025, Honliv Healthcare Management Group Co., Ltd.'s revenue decreased by 16.5% year-on-year to **RMB 346,820 thousand**, gross profit decreased by 36.1% to **RMB 45,801 thousand**. Profit attributable to owners of the Company turned from a profit of **RMB 20,042 thousand** in the same period last year to a loss of **RMB 673 thousand**, with basic and diluted loss per share of **RMB (0.00)** Financial Summary for the Six Months Ended June 30, 2025 | Indicator | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 346,820 | 415,178 | (16.5) | | Gross Profit | 45,801 | 71,621 | (36.1) | | Loss/(Profit) attributable to owners of the Company | (673) | 20,042 | (103.4) | | Basic and Diluted Loss/(Earnings) Per Share (RMB) | (0.00)* | 0.04 | (103.3) | *Amount less than RMB 0.01 [Performance](index=2&type=section&id=%E6%A5%AD%E7%B8%BE) The Group's financial performance for the six months ended June 30, 2025, saw a significant decline in revenue and gross profit, leading to a net loss attributable to owners of the Company [Interim Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's revenue decreased by 16.5% year-on-year to **RMB 346,820 thousand**, cost of sales decreased by 12.4% to **RMB 301,019 thousand**, leading to a significant 36.1% year-on-year decrease in gross profit to **RMB 45,801 thousand**. Operating profit substantially declined from **RMB 31,833 thousand** in the prior year to **RMB 3,489 thousand**. Total loss for the period was **RMB 676 thousand**, compared to a profit of **RMB 20,263 thousand** in the same period last year Key Data from Interim Condensed Consolidated Statement of Comprehensive Income | Indicator | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Revenue | 346,820 | 415,178 | | Cost of Sales | (301,019) | (343,557) | | Gross Profit | 45,801 | 71,621 | | Administrative Expenses | (41,914) | (38,689) | | Operating Profit | 3,489 | 31,833 | | Finance Costs — Net | (4,198) | (3,746) | | Loss/(Profit) Before Income Tax | (709) | 28,087 | | Income Tax Credit/(Expense) | 33 | (7,824) | | Loss/(Profit) for the Period and Total Comprehensive Loss/(Income) for the Period | (676) | 20,263 | [Loss/(Profit) Attributable to Owners of the Company and Loss/(Earnings) Per Share](index=4&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%94%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89%E2%88%95%E5%88%A9%E6%BD%A4%E5%8F%8A%E6%AF%8F%E8%82%A1%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89%E2%88%95%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, the loss attributable to owners of the Company was **RMB 673 thousand**, compared to a profit of **RMB 20,042 thousand** in the same period last year. Basic and diluted loss per share was **RMB (0.00)**, compared to earnings of **RMB 0.04** in the prior year Loss/(Profit) Attributable to Owners of the Company and Loss/(Earnings) Per Share | Indicator | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Loss/(Profit) attributable to owners of the Company | (673) | 20,042 | | Non-controlling interests | (3) | 221 | | Basic and Diluted Loss/(Earnings) Per Share (RMB) | (0.00)* | 0.04 | *Amount less than RMB 0.01 [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B3%87%E7%94%A2%E8%B2%A0%E5%80%B5%E8%A1%A8) As of June 30, 2025, the Group's total assets and liabilities decreased, with a notable reduction in current assets and total liabilities, while total equity also saw a slight decline [Assets](index=4&type=section&id=%E8%B5%84%E4%BA%A7) As of June 30, 2025, the Group's total assets were **RMB 894,729 thousand**, a decrease of approximately 8.1% from **RMB 974,003 thousand** as of December 31, 2024. Total non-current assets slightly decreased, while total current assets decreased by approximately 12.8% to **RMB 335,963 thousand**, mainly due to reductions in inventories, trade receivables, and other receivables Key Asset Data | Indicator | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Total Non-current Assets | 558,766 | 589,022 | | Total Current Assets | 335,963 | 384,981 | | Total Assets | 894,729 | 974,003 | | Inventories | 17,962 | 39,569 | | Trade Receivables | 29,127 | 63,757 | | Other Receivables and Prepayments | 1,582 | 22,514 | | Cash and Cash Equivalents | 286,780 | 258,498 | [Equity and Liabilities](index=5&type=section&id=%E6%9D%83%E7%9B%8A%E5%8F%8A%E8%B4%9F%E5%80%BA) As of June 30, 2025, the Group's total equity was **RMB 560,811 thousand**, a decrease of approximately 3.1% from December 31, 2024. Total liabilities decreased by approximately 15.5% to **RMB 333,918 thousand**, primarily due to reductions in borrowings, trade payables, and accrued expenses Key Equity and Liabilities Data | Indicator | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Total Equity | 560,811 | 578,923 | | Total Non-current Liabilities | 9,032 | 14,677 | | Total Current Liabilities | 324,886 | 380,403 | | Total Liabilities | 333,918 | 395,080 | | Trade Payables | 96,020 | 100,666 | | Borrowings | 134,933 | 173,450 | [Notes to the Financial Statements](index=6&type=section&id=%E9%99%84%E8%A8%BB) The notes provide essential details on the Group's general information, accounting policies, segment reporting, revenue breakdown, other losses, income tax, earnings per share, trade receivables, trade payables, and dividend policy [1. General Information](index=6&type=section&id=1%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Honliv Healthcare Management Group Co., Ltd. was incorporated in the Cayman Islands and listed on the Main Board of the Hong Kong Stock Exchange on July 13, 2020. The Group primarily engages in the ownership, operation, and management of hospitals in China - The Company was incorporated in the Cayman Islands on January 6, 2016, and listed on the Main Board of the Hong Kong Stock Exchange on July 13, 2020[7](index=7&type=chunk)[8](index=8&type=chunk) - The Group primarily engages in the ownership, operation, and management of hospitals in China[7](index=7&type=chunk) [2. Basis of Presentation and Accounting Policies](index=6&type=section&id=2%20%E5%91%88%E5%88%97%E5%9F%BA%E6%BA%96%E5%8F%8A%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants. New and revised standards adopted during the reporting period had no significant impact on the Group's financial performance and position - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[9](index=9&type=chunk) - New and revised standards adopted during the reporting period had no significant impact on the Group's financial performance and position[10](index=10&type=chunk) [3. Segment Reporting](index=7&type=section&id=3%20%E5%88%86%E9%83%A8%E5%A0%B1%E5%91%8A) For the six months ended June 30, 2025 and 2024, the Group had only one operating segment, thus no segment information is presented. All revenue and non-current assets are primarily located in China - The Group had only one operating segment during the reporting period, and no segment information is presented[12](index=12&type=chunk) - All of the Group's revenue is derived from its operations in China, and its operations and non-current assets are primarily located in China[12](index=12&type=chunk) [4. Revenue](index=7&type=section&id=4%20%E6%94%B6%20%E5%85%A5) The Group's revenue primarily derives from treatment and comprehensive medical services, drug sales, and postpartum care services. For the six months ended June 30, 2025, total revenue was **RMB 346,820 thousand**, a 16.5% year-on-year decrease. Revenue from treatment and comprehensive medical services decreased by 18.3%, drug sales revenue decreased by 15.8%, while postpartum care services revenue significantly increased by 873.6%. The estimated settlement rate for inpatient services revenue was adjusted from 93.36% to 86.00%, resulting in a **RMB 5,037 thousand** reduction in revenue for the period Nature and Timing of Revenue Recognition | Nature of Revenue Recognition | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Treatment and comprehensive medical services | 204,171 | 250,041 | | Drug sales | 138,774 | 164,739 | | Postpartum care services | 3,875 | 398 | | **Total Revenue** | **346,820** | **415,178** | | Timing of revenue recognition: at a point in time | 252,448 | 282,710 | | Timing of revenue recognition: over time | 94,372 | 132,468 | - For the six months ended June 30, 2025, the estimated settlement rate for inpatient services revenue was **86.00%** (year ended December 31, 2024: **93.36%**)[13](index=13&type=chunk) - The difference between the final settlement rate and previous estimates resulted in a **RMB 5,037 thousand** reduction in inpatient services revenue for the six months ended June 30, 2025[14](index=14&type=chunk) [5. Other Losses — Net](index=8&type=section&id=5%20%E5%85%B6%E4%BB%96%E8%99%A7%E6%90%8D%20%E2%80%94%20%E6%B7%A8%E9%A1%8D) For the six months ended June 30, 2025, other losses net amounted to **RMB 805 thousand**, primarily comprising medical compensation losses of **RMB 801 thousand**, a decrease from **RMB 1,273 thousand** in the prior year Details of Other Losses — Net | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Medical compensation losses | 801 | 1,273 | | Net loss on disposal of property, plant and equipment | 4 | 9 | | Others | – | 2 | | **Total** | **805** | **1,284** | [6. Income Tax Credit/(Expense)](index=8&type=section&id=6%20%E6%89%80%E5%BE%97%E7%A8%85%E6%8A%B5%E5%85%8D%2F%EF%BC%88%E9%96%8B%E6%94%AF%EF%BC%89) For the six months ended June 30, 2025, the Group recorded an income tax credit of **RMB 33 thousand**, compared to an income tax expense of **RMB 7,824 thousand** in the prior year. This was primarily due to reduced profit before tax and the recognition of deferred tax assets. Mainland China subsidiaries are subject to a 25% corporate income tax rate, while Cayman Islands companies are exempt, and Hong Kong has no assessable profits Details of Income Tax Credit/(Expense) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Current income tax — China corporate income tax | (32) | (7,184) | | Deferred income tax | 65 | (640) | | **Total** | **33** | **(7,824)** | - Subsidiaries established and operating in Mainland China are subject to China corporate income tax at a rate of **25%**[18](index=18&type=chunk) - Companies in the Cayman Islands are exempt from Cayman Islands income tax, and there is no assessable profit in Hong Kong, thus no provision for Hong Kong profits tax[17](index=17&type=chunk)[19](index=19&type=chunk) [7. Loss/(Earnings) Per Share](index=9&type=section&id=7%20%E6%AF%8F%E8%82%A1%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89%2F%E7%9B%88%20%E5%88%A9) For the six months ended June 30, 2025, basic and diluted loss per share was **RMB (0.00)**, compared to earnings of **RMB 0.04** in the prior year. Diluted loss per share was the same as basic loss per share as the Group had no potential dilutive shares Calculation of Loss/(Earnings) Per Share | Indicator | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Loss/(Profit) attributable to owners of the Company | (673) | 20,042 | | Weighted average number of ordinary shares in issue (thousand shares) | 541,968 | 549,214 | | Basic Loss/(Earnings) Per Share (RMB) | (0.00)* | 0.04 | *Amount less than RMB 0.01 - As the Group had no potential dilutive shares during the reporting period, diluted loss/(earnings) per share was the same as basic loss/(earnings) per share[23](index=23&type=chunk) - For the six months ended June 30, 2025, **8,962,000 shares** were repurchased for the employee share scheme[24](index=24&type=chunk) [8. Trade Receivables](index=10&type=section&id=8%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, net trade receivables amounted to **RMB 29,127 thousand**, a significant decrease of 54.3% from **RMB 63,757 thousand** as of December 31, 2024. The aging analysis shows that receivables up to 3 months accounted for the largest proportion, but the amount significantly decreased Aging Analysis of Trade Receivables | Aging | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Up to 3 months | 27,058 | 62,782 | | 3 to 6 months | 1,714 | 477 | | 6 months to 1 year | 309 | 653 | | 1 to 2 years | 83 | 273 | | 2 to 3 years | 731 | 1,335 | | Over 3 years | 793 | – | | **Total** | **30,688** | **65,520** | | Less: Impairment provision for trade receivables | (1,561) | (1,763) | | **Net Trade Receivables** | **29,127** | **63,757** | [9. Trade Payables](index=11&type=section&id=9%20%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, trade payables amounted to **RMB 96,020 thousand**, a decrease of 4.6% from **RMB 100,666 thousand** as of December 31, 2024. The aging analysis shows that payables up to 3 months still constituted the major portion Aging Analysis of Trade Payables | Aging | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Up to 3 months | 76,070 | 77,431 | | 3 to 6 months | 13,888 | 15,406 | | 6 months to 1 year | 1,291 | 2,839 | | 1 to 2 years | 871 | 1,260 | | 2 to 3 years | 1,218 | 421 | | Over 3 years | 2,682 | 3,309 | | **Total** | **96,020** | **100,666** | [10. Dividends](index=11&type=section&id=10%20%E8%82%A1%20%E6%81%AF) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 (June 30, 2024: nil)[26](index=26&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides an in-depth review of the Group's market environment, operational performance, financial results, liquidity, and corporate governance, highlighting challenges and strategic responses [Market Overview and Outlook](index=12&type=section&id=%E5%B8%82%E5%9C%BA%E6%A6%82%E8%A7%88%E5%8F%8A%E5%89%8D%E6%99%AF) The private hospital sector faces a complex development trend of 'quality upgrade' and 'structural optimization', with profound changes in policy, market, technology, and capital. Policies are shifting from loose access to balanced regulation and support, with DRG/DIP payment reforms raising entry barriers. The market is moving from homogeneous competition to differentiated development, with growing demand for high-end medical care and integrated medical-elderly care. Digital transformation is becoming a core technological competency, and capital investment logic is shifting towards value-based healthcare - The private hospital sector faces a development trend of 'quality upgrade' and 'structural optimization' simultaneously, presenting both opportunities and challenges[27](index=27&type=chunk) - Policy level: Shifting from loose access to balanced regulation and support, with DRG/DIP payment reforms and rating management raising industry entry barriers[27](index=27&type=chunk) - Market level: Moving from homogeneous competition to differentiated development, with rapidly growing demand for high-end medical care and integrated medical-elderly care driven by consumption upgrades and an aging population[28](index=28&type=chunk) - Technology level: Digital transformation is becoming essential, with smart medical technologies such as AI-assisted diagnosis, surgical robots, and electronic medical record systems becoming core competencies[28](index=28&type=chunk) - Capital level: Investment logic is shifting from scale expansion to value-based healthcare, with capital favoring specialized chains, emerging specialties, and smart healthcare sectors[28](index=28&type=chunk) [Group's Strategic Response](index=13&type=section&id=%E9%9B%86%E5%9B%A2%E6%88%98%E7%95%A5%E5%BA%94%E5%AF%B9) Facing complex industry conditions, the Group will implement five key strategies: specialized deep cultivation, intelligent transformation, brand building, talent system innovation, and strengthened social responsibility, to achieve a fundamental shift from quantitative expansion to qualitative improvement - Specialized Deep Cultivation Strategy: Focusing on advantageous specialized fields within the general hospital model to form differentiated competitiveness[29](index=29&type=chunk) - Intelligent Transformation Strategy: Leveraging digitalization as a core driver for improving medical quality and operational efficiency, incrementally increasing the application of AI, big data, telemedicine, and other technologies[29](index=29&type=chunk) - Brand Building Strategy: Integrating brand building with medical quality improvement through international certifications like JCI/DNV, participation in public health events, and transparent operations[29](index=29&type=chunk) - Talent System Innovation Strategy: Building a more open physician collaboration network, capitalizing on the relaxed policies for multi-site physician practice[29](index=29&type=chunk) - Strengthened Social Responsibility Strategy: Actively participating in public health services, paired assistance, and philanthropic initiatives, integrating social responsibility into the institution's development strategy[29](index=29&type=chunk) [Business Review](index=13&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%BE) For the six months ended June 30, 2025, the Group's consolidated revenue was **RMB 346.8 million**, a year-on-year decrease of 16.5%. Outpatient visits decreased by 4.2% to **717,563**, and inpatient visits decreased by 21.9% to **22,811**. The reduction in both outpatient and inpatient visits was primarily influenced by comprehensive social factors, patient migration to grassroots medical institutions under new healthcare reform policies, and the transformation of the medical industry - For the six months ended June 30, 2025, the Group's consolidated revenue was **RMB 346.8 million**, a decrease of **RMB 68.4 million** or **16.5%** compared to **RMB 415.2 million** for the six months ended June 30, 2024[31](index=31&type=chunk) - Outpatient visits were **717,563**, a decrease of **31,158 visits** or **4.2%** compared to **748,721 visits** for the six months ended June 30, 2024[31](index=31&type=chunk) - Inpatient visits were **22,811**, a decrease of **6,407 visits** or **21.9%** compared to **29,218 visits** for the six months ended June 30, 2024[32](index=32&type=chunk) - The decrease in both outpatient and inpatient visits was primarily due to comprehensive social factors (such as a decrease in the number of women of childbearing age and changes in fertility intentions) and the migration of some patients to grassroots medical institutions under new healthcare reform policies[33](index=33&type=chunk) [Hospital Service Operating Data](index=15&type=section&id=%E5%8C%BB%E9%99%A2%E6%9C%8D%E5%8A%A1%E8%BF%90%E8%90%A5%E6%95%B0%E6%8D%AE) Operating data for Henan Honliv Hospital shows a significant decrease in both inpatient visits and average inpatient expenses per visit, while outpatient visits slightly decreased and average outpatient expenses per visit increased. Operating beds remained unchanged, and the average length of stay increased Key Hospital Service Operating Data | Indicator | 2025 | 2024 | Change % | | :--- | :--- | :--- | :--- | | Outpatient visits | 717,563 | 748,721 | –4.2 | | Average outpatient expense per visit (RMB) | 310.4 | 300.4 | 3.3 | | Inpatient visits | 22,811 | 29,218 | –21.9 | | Average inpatient expense per visit (RMB) | 5,269.5 | 6,498.2 | –18.9 | | Operating beds at period end | 1,500 | 1,500 | 0 | | Average length of stay (days) | 9.7 | 8.8 | 11.1 | | Number of surgeries | 5,733 | 6,316 | –9.2 | [Revenue and Operations Analysis](index=16&type=section&id=%E6%94%B6%E7%9B%8A%E4%B8%8E%E7%BB%8F%E8%90%A5%E5%88%86%E6%9E%90) The Group's revenue and operations face severe challenges from the macro industry environment, including a wave of private hospital closures, the impact of medical insurance DRG/DIP payment reforms, and regional hospital competition. Inpatient revenue shrank due to a dual decline in visits and average expenses per visit, while outpatient revenue remained relatively stable. Concurrently, rigid costs continued to rise, and management efficiency needs improvement. To address these challenges, the hospital implemented various measures such as refined classified diagnosis and treatment, enhancing medical quality, expanding service areas, opening specialized clinics, strengthening cooperation, and utilizing social media - The current healthcare industry faces unprecedented systemic challenges, particularly severe for private hospitals, directly impacting their operational performance[37](index=37&type=chunk) - Industry-wide decline: In the first half of 2025, the number of private hospital closures nationwide exceeded **one thousand**, including several tertiary hospitals[40](index=40&type=chunk) - Impact of medical insurance policy reforms: DRG/DIP payment method reforms have profoundly impacted hospital revenue structures[40](index=40&type=chunk) - Inpatient revenue shrinkage: A dual decline in inpatient visits and average expenses per visit led to reduced inpatient revenue, primarily due to medical insurance DRG/DIP payment reforms limiting reimbursement amounts[40](index=40&type=chunk) - Outpatient revenue relatively stable: Outpatient performance remained relatively robust, with outpatient services less affected by medical insurance policies[40](index=40&type=chunk) - Cost and operational pressure: Rigid costs (taxes, equipment upgrades, salaries) continued to rise, and management efficiency needs improvement[41](index=41&type=chunk)[43](index=43&type=chunk) - Countermeasures: Guided by medical insurance policies and leveraging smart hospital construction as a platform, implementing refined classified diagnosis and treatment, improving medical quality, expanding service areas, opening specialized clinics, strengthening cooperation, and utilizing social media to enhance brand image[43](index=43&type=chunk) [Research Activities](index=18&type=section&id=%E7%A7%91%E7%A0%94%E6%B4%BB%E5%8A%A8) The Group continued to conduct clinical practice-based research activities, with 30 new technologies and projects declared in the first half of 2025, of which 13 new technologies passed ethical review. Medical staff published 30 papers, including one SCI article - In the first half of 2025, the Group's hospitals declared **30 new technologies and projects**, including **13 new technologies** and **17 new projects**, with all **13 new technologies** passing ethical committee review[44](index=44&type=chunk) - Medical staff published **30 papers**, including **1 SCI article**[44](index=44&type=chunk) [Drug Sales](index=18&type=section&id=%E8%97%A5%E5%93%81%E9%8A%B7%E5%94%AE) During the reporting period, the Group's drug sales revenue was **RMB 138.7 million**, a year-on-year decrease of 15.8%, primarily from direct sales of drugs to patients - Drug sales revenue for the reporting period was **RMB 138.7 million** (six months ended June 30, 2024: **RMB 164.7 million**), a year-on-year decrease of **15.8%**[45](index=45&type=chunk) - The Group's drug sales primarily derive from direct sales of drugs to patients[45](index=45&type=chunk) [Financial Review](index=18&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's revenue primarily came from treatment and comprehensive medical services, drug sales, and postpartum care services. Total revenue decreased by 16.5% year-on-year to **RMB 346.8 million**, mainly due to reduced outpatient and inpatient visits and average inpatient expenses per visit. Cost of sales decreased by 12.4%, but gross profit still significantly declined by 36.1% to **RMB 45.8 million**, with the gross profit margin falling to 13.2%. Administrative expenses increased by 8.3%, net finance costs increased, and income tax shifted from an expense to a credit. Ultimately, profit for the period turned from a profit to a loss, with a net loss margin of **-0.2%** - Our combined revenue from treatment and comprehensive medical services, drug sales, and postpartum care services decreased by **16.5%** from **RMB 415.2 million** for the six months ended June 30, 2024, to **RMB 346.8 million** for the six months ended June 30, 2025, primarily due to a reduction in both outpatient and inpatient visits and average inpatient expenses per visit[51](index=51&type=chunk) - Our inpatient medical services revenue decreased by **36.7%** from **RMB 189.9 million** for the six months ended June 30, 2024, to **RMB 120.2 million** for the six months ended June 30, 2025, primarily due to a decrease in inpatient visits and average inpatient expenses per visit, as well as a reduction in the estimated settlement rate for inpatient services revenue determined by the medical insurance bureau[52](index=52&type=chunk) - Our outpatient medical services revenue slightly decreased by **1.0%** from **RMB 224.9 million** for the six months ended June 30, 2024, to **RMB 222.7 million** for the six months ended June 30, 2025, primarily due to a decrease in outpatient visits offsetting an increase in average outpatient expenses per visit[52](index=52&type=chunk) - Our cost of sales decreased by **12.4%** from **RMB 343.6 million** for the six months ended June 30, 2024, to **RMB 301.0 million** for the six months ended June 30, 2025, primarily due to lower drug costs, employee benefit expenses, and medical consumables costs, despite an increase in depreciation and amortization expenses[53](index=53&type=chunk) - Gross profit decreased by **36.1%** to **RMB 45.8 million**, with the gross profit margin falling from **17.3%** to **13.2%**, mainly due to a slight decrease in revenue and an increase in fixed costs such as depreciation and amortization[54](index=54&type=chunk) - Administrative expenses increased by **8.3%** to **RMB 41.9 million**, primarily due to increased employee benefit expenses and depreciation and amortization expenses[56](index=56&type=chunk) - Net finance costs increased to **RMB 4.2 million**, primarily due to increased exchange losses during the reporting period[57](index=57&type=chunk) - Income tax shifted from an expense of **RMB 7.8 million** to a credit of **RMB 0.1 million**, primarily due to reduced profit before tax and the recognition of deferred tax assets for tax losses available for utilization within the next five years[58](index=58&type=chunk) - Profit for the period turned from a profit of **RMB 20.3 million** to a loss of **RMB 0.7 million**, with a net loss margin of **-0.2%**[59](index=59&type=chunk) [Revenue Breakdown](index=18&type=section&id=%E6%94%B6%E5%85%A5%E6%98%8E%E7%BB%86) The Group's revenue primarily consists of treatment and comprehensive medical services (**58.9%**) and drug sales (**40.0%**), with postpartum care services accounting for **1.1%**. By source, outpatient medical services revenue accounted for **64.2%**, and inpatient medical services revenue for **34.7%** Revenue Breakdown by Nature of Activity | Revenue Source | 2025 (thousand RMB) | Proportion | 2024 (thousand RMB) | Proportion | | :--- | :--- | :--- | :--- | :--- | | Treatment and comprehensive medical services | 204,171 | 58.9% | 250,041 | 60.2% | | Drug sales | 138,774 | 40.0% | 164,739 | 39.7% | | Postpartum care services | 3,875 | 1.1% | 398 | 0.1% | | **Total** | **346,820** | **100.0%** | **415,178** | **100.0%** | Revenue Breakdown by Hospital Service Source | Revenue Source | 2025 (thousand RMB) | Proportion | 2024 (thousand RMB) | Proportion | | :--- | :--- | :--- | :--- | :--- | | Outpatient medical services | 222,742 | 64.2% | 224,915 | 54.2% | | Inpatient medical services | 120,203 | 34.7% | 189,865 | 45.7% | | Postpartum care services | 3,875 | 1.1% | 398 | 0.1% | | **Total** | **346,820** | **100.0%** | **415,178** | **100.0%** | Patient Visits and Average Expenses Per Visit | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Outpatient visits | 717,563 | 748,721 | | Average outpatient expense per visit (RMB) | 310.4 | 300.4 | | Inpatient visits | 22,811 | 29,218 | | Average inpatient expense per visit (RMB) | 5,269.5 | 6,498.2 | | Operating beds at period end | 1,500 | 1,500 | [Discussion of Interim Condensed Consolidated Statement of Financial Position Items](index=22&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B3%87%E7%94%A2%E8%B2%A0%E5%80%B5%E8%A1%A8%E9%A0%85%E7%9B%AE%E8%A8%8E%E8%AB%96) The Group's net current assets significantly increased by 142.0% to **RMB 11.1 million**, primarily driven by net cash generated from operating activities. Inventories, trade receivables, and other receivables all substantially decreased, reflecting optimized inventory management, settlement of medical insurance bureau receivables, and receipt of proceeds from land use rights disposal. Debts and trade payables also decreased due to repayment of borrowings and increased payments - Net current assets increased by **142.0%** from **RMB 4.6 million** as of December 31, 2024, to **RMB 11.1 million** as of June 30, 2025, primarily due to net cash generated from operating activities exceeding net cash used in financing activities[60](index=60&type=chunk) - Inventories decreased by **54.6%** from **RMB 39.6 million** as of December 31, 2024, to **RMB 18.0 million** as of June 30, 2025, primarily due to the utilization of inventories reserved for the Chinese New Year at the end of 2024[61](index=61&type=chunk) - Trade receivables decreased by **54.3%** from **RMB 63.8 million** as of December 31, 2024, to **RMB 29.1 million** as of June 30, 2025, primarily due to the settlement of receivables from the medical insurance bureau[62](index=62&type=chunk) - Other receivables and prepayments decreased from **RMB 22.5 million** as of December 31, 2024, to **RMB 1.6 million** as of June 30, 2025, primarily due to the receipt of cash from the land use rights disposal transaction signed in 2024 during the reporting period[63](index=63&type=chunk) - Borrowings decreased from **RMB 173.5 million** as of December 31, 2024, to **RMB 134.9 million** as of June 30, 2025, primarily due to the repayment of certain borrowings during the reporting period[64](index=64&type=chunk) - Trade payables decreased from **RMB 100.7 million** as of December 31, 2024, to **RMB 96.0 million** as of June 30, 2025, primarily due to increased payments during the reporting period[65](index=65&type=chunk) - Accrued expenses, other payables, and provisions decreased from **RMB 107.8 million** as of December 31, 2024, to **RMB 93.3 million** as of June 30, 2025, primarily due to increased payments for employee salaries and benefits during the reporting period[66](index=66&type=chunk) - As of June 30, 2025, the Group had no contingent liabilities or guarantees that would have a significant impact on its financial position or operations[67](index=67&type=chunk) - As of June 30, 2025, the Group's lease liabilities balance related to leased properties was approximately **RMB 1.1 million**[68](index=68&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E8%88%87%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) For the six months ended June 30, 2025, net cash generated from operating activities significantly increased to **RMB 80.7 million**, primarily due to the settlement of medical insurance bureau receivables. Investing activities shifted from a net outflow to a net inflow of **RMB 9.0 million**, mainly from the proceeds of land use rights disposal. Net cash used in financing activities increased to **RMB 61.3 million**, primarily due to increased repayment of bank borrowings and share repurchases for the employee share scheme Consolidated Cash Flow Statement Related Information | Indicator | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Net cash generated from operating activities | 80,653 | 57,341 | | Net cash generated from/(used in) investing activities | 9,022 | (22,975) | | Net cash used in financing activities | (61,346) | (13,962) | | Net increase in cash and cash equivalents balance | 28,329 | 20,404 | - Net cash generated from operating activities increased from **RMB 57.3 million** for the six months ended June 30, 2024, to **RMB 80.7 million** for the six months ended June 30, 2025, primarily due to the settlement of medical insurance bureau receivables during the reporting period[72](index=72&type=chunk) - Net cash generated from investing activities increased from an outflow of **RMB 23.0 million** for the six months ended June 30, 2024, to an inflow of **RMB 9.0 million** for the six months ended June 30, 2025, primarily due to the receipt of **RMB 19.1 million** from the disposal of land use rights during the six months ended June 30, 2025[73](index=73&type=chunk) - Net cash used in financing activities increased from **RMB 14.0 million** for the six months ended June 30, 2024, to **RMB 61.3 million** for the six months ended June 30, 2025. The increase was primarily due to the repayment of **RMB 32.6 million** in bank borrowings and an increase of approximately **RMB 17.4 million** in purchases of existing shares under the restricted share unit scheme during the reporting period[74](index=74&type=chunk) [Financial Instruments](index=24&type=section&id=%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7) The Group's financial instruments include trade receivables, other receivables, cash and cash equivalents, bank borrowings, trade payables, and other payables. Management monitors foreign exchange rate fluctuations closely to manage exchange rate risk and considers hedging significant foreign exchange exposures - The Group's financial instruments include trade receivables, other receivables, cash and cash equivalents, bank borrowings, trade payables, and other payables[75](index=75&type=chunk) - The Group holds certain financial assets in foreign currencies, primarily involving exchange rate fluctuation risks of HKD and USD against RMB. Management manages this risk by closely monitoring foreign exchange rate movements and considers hedging significant foreign exchange exposures[76](index=76&type=chunk) [Gearing Ratio](index=25&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%80%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the Group's gearing ratio was **37.3%**, a decrease from **40.6%** as of December 31, 2024 - As of June 30, 2025, the Group's gearing ratio (total liabilities divided by total assets) was **37.3%** (December 31, 2024: **40.6%**)[77](index=77&type=chunk) [Use of Proceeds](index=25&type=section&id=%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) The net proceeds from the global offering were approximately **HKD 264.8 million**. As of June 30, 2025, **HKD 195.6 million** had been utilized, primarily for the expansion of Phase I building, repayment of general borrowings, working capital, purchase of medical equipment, and construction of a postpartum care center. **HKD 69.2 million** remains unutilized, planned for hospital acquisitions to expand business - Net proceeds of approximately **HKD 264.8 million** were raised from the global offering[78](index=78&type=chunk) Use of Net Proceeds from Global Offering | Business Purpose | Planned Use of Net Proceeds as Stated in Prospectus (million HKD) | Net Proceeds Utilized as of June 30, 2025 (million HKD) | Net Proceeds Unutilized as of June 30, 2025 (million HKD) | | :--- | :--- | :--- | :--- | | Expansion of the Company's Phase I building | 78.0 | 78.0 | 0.0 | | Acquisition of hospitals to expand business | 69.2 | 0.0 | 69.2 | | Repayment of the Company's general borrowings | 39.8 | 39.8 | 0.0 | | Working capital and other general corporate purposes | 26.5 | 26.5 | 0.0 | | Purchase of medical equipment, improvement and upgrade of information technology systems | 21.3 | 21.3 | 0.0 | | Employee recruitment and training | 13.3 | 13.3 | 0.0 | | Construction of postpartum care center | 16.7 | 16.7 | 0.0 | | **Total** | **264.8** | **195.6** | **69.2** | - As of June 30, 2025, the unutilized net proceeds from the global offering were deposited as short-term demand deposits into accounts of receiving financial institutions[80](index=80&type=chunk) [Public Float](index=26&type=section&id=%E5%85%AC%E7%9C%BE%E6%8C%81%E8%82%A1%E9%87%8F) As of the date of this announcement, at least **25%** of the Company's total issued share capital is held by the public, in compliance with the Listing Rules - As of the date of this announcement, at least **25%** of the Company's total issued share capital is held by the public, in compliance with the Listing Rules[81](index=81&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=26&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B3%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the reporting period, the Company repurchased a total of **8,962,000 shares** on the Stock Exchange in February 2025, for a total consideration of approximately **HKD 18.90 million**. Other than this, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the reporting period, the Company repurchased a total of **8,962,000 shares** on the Stock Exchange in February 2025, for a total consideration of approximately **HKD 18.90 million**[82](index=82&type=chunk) - Save as disclosed, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities for the six months ended June 30, 2025[82](index=82&type=chunk) [Material Events After Reporting Period](index=26&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A0%85) As of the date of this announcement, there were no material events after the reporting period - As of the date of this announcement, there were no material events after the reporting period[83](index=83&type=chunk) [Compliance with Corporate Governance Code](index=26&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) During the reporting period, the Company complied with all applicable code provisions of the Corporate Governance Code, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Qin Yan. The Board believes this structure does not undermine the balance of power and will review it periodically - During the reporting period, the Company complied with all applicable code provisions set out in Part 2 of the Corporate Governance Code, except for code provision C.2.1 which stipulates that the roles of Chairman and Chief Executive Officer should be separate and not performed by the same individual[84](index=84&type=chunk) - Mr. Qin Yan holds both the roles of Chairman and Chief Executive Officer of the Company. The Board believes this structure does not undermine the balance of power and authority between the Board and management, and will review the corporate governance structure and practices periodically[85](index=85&type=chunk) [Compliance with the Standard Securities Dealing Code for Directors](index=27&type=section&id=%E9%81%B5%E5%AE%88%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) Following specific inquiries, all Directors confirmed their compliance with the provisions of the Standard Code throughout the reporting period - Following specific inquiries, all Directors confirmed that they had complied with the provisions set out in the Standard Code throughout the reporting period[86](index=86&type=chunk) [Review by Audit Committee](index=27&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%91%A1%E6%9C%83%E5%AF%A9%E9%96%B1) The Audit Committee reviewed the Group's interim results for the six months ended June 30, 2025, and deemed them prepared in accordance with applicable accounting standards. PricewaterhouseCoopers, the independent auditor, conducted an independent review of the interim financial information - All members of the Audit Committee have reviewed the Group's interim results for the six months ended June 30, 2025. Based on this review, the Audit Committee believes that the Group's unaudited interim results were prepared in accordance with applicable accounting standards[87](index=87&type=chunk) - Furthermore, PricewaterhouseCoopers, the Company's independent auditor, conducted an independent review of the Group's interim financial information for the reporting period in accordance with Hong Kong Standard on Review Engagements 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Hong Kong Institute of Certified Public Accountants[87](index=87&type=chunk) [Interim Dividend](index=27&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025[88](index=88&type=chunk) [Employees and Remuneration Policy](index=28&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had a total of **1,844 employees**, a decrease from **1,953** in the prior year. Employee costs were approximately **RMB 107.2 million**. Remuneration is determined based on qualifications, experience, and performance, with discretionary bonuses contingent on performance, Group financial results, and market conditions. No restricted share units were granted during the reporting period - As of June 30, 2025, the total number of employees was approximately **1,844** (June 30, 2024: **1,953**)[89](index=89&type=chunk) - For the six months ended June 30, 2025, employee costs (including Directors' remuneration paid in the form of salaries and other benefits) were approximately **RMB 107.2 million** (six months ended June 30, 2024: approximately **RMB 118.1 million**)[89](index=89&type=chunk) - Remuneration is determined with reference to qualifications, experience, and performance, while discretionary bonuses are generally paid based on work performance, the Group's financial performance for the year, and general market conditions[89](index=89&type=chunk) - No restricted share units were granted under the restricted share unit scheme during the reporting period[90](index=90&type=chunk) [Publication of Interim Results and Interim Report](index=28&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This interim results announcement has been published on the Stock Exchange and the Company's websites, and the interim report will be dispatched to shareholders and published on relevant websites in due course - This interim results announcement is published on the Stock Exchange's website (www.hkexnews.hk) and the Company's website (www.honlivhp.com)[91](index=91&type=chunk) - The Group's interim report for the six months ended June 30, 2025, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the websites of the Stock Exchange and the Company in due course[91](index=91&type=chunk) [Acknowledgement](index=28&type=section&id=%E9%B3%B4%E8%AC%9D) The Board thanks the management team, employees, all partners, customers, suppliers, and shareholders for their contributions and support to the Group's success - The Board extends its sincere gratitude to the Group's management team and employees for their contributions to the Group's success and their dedication to achieving its vision. The Board also sincerely thanks all the Group's partners, customers, suppliers, and shareholders[92](index=92&type=chunk) [Definitions](index=29&type=section&id=%E9%87%8B%E7%BE%A9) This section provides a comprehensive glossary of key terms used throughout the report, ensuring clarity and consistent understanding of financial and operational terminology [Definitions of Key Terms](index=29&type=section&id=%E4%B8%BB%E8%A6%81%E8%AF%8D%E6%B1%87%E5%AE%9A%E4%B9%89) This announcement provides definitions for several key terms, including 'the Group', 'Henan Honliv Hospital', 'Audit Committee', 'Board', 'Corporate Governance Code', 'Chairman', 'China', 'the Company', 'Directors', 'Global Offering', 'Hong Kong', 'HKD', 'Independent Third Party', 'Listing', 'Listing Date', 'Listing Rules', 'Standard Code', 'Reporting Period', 'Prospectus', 'RMB', 'Shares', 'Shareholders', 'Stock Exchange', and '%' - 'The Group' or 'Group' or 'we' or 'our' refers to the Company and its subsidiaries, or, depending on the context, for the period before the Company became the holding company of its current subsidiaries, refers to the businesses operated by the Company's current subsidiaries and such subsidiaries or (as the case may be) their predecessors[94](index=94&type=chunk) - 'Henan Honliv Hospital' or 'our hospital' refers to Henan Honliv Hospital Co., Ltd., a limited liability company established in China on May 24, 2004[94](index=94&type=chunk) - 'Reporting Period' refers to the six months ended June 30, 2025[96](index=96&type=chunk) [Board of Directors](index=31&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E6%88%90%E5%93%A1) This section outlines the composition of the Board of Directors, detailing the executive, non-executive, and independent non-executive members as of the announcement date [Board Composition](index=31&type=section&id=%E8%91%A3%E4%BA%8B%E4%BC%9A%E7%BB%84%E6%88%90) As of the date of this announcement, the Board of Directors comprises Executive Directors Mr. Qin Yan (also Chairman), Mr. Wang Zhongtao, and Ms. Li Yanhong; Non-executive Director Mr. Qin Hongchao; and Independent Non-executive Directors Mr. Zhao Chun, Mr. Sun Jigang, and Mr. Jiang Tianfan - As of the date of this announcement, the Board of Directors includes Executive Directors Mr. Qin Yan, Mr. Wang Zhongtao, and Ms. Li Yanhong[98](index=98&type=chunk) - Non-executive Director Mr. Qin Hongchao[98](index=98&type=chunk) - Independent Non-executive Directors Mr. Zhao Chun, Mr. Sun Jigang, and Mr. Jiang Tianfan[98](index=98&type=chunk)

Group 1 - The company, Hongli Medical Management (09906.HK), will hold a board meeting on August 29, 2025, to consider and approve the interim results for the six months ending June 30, 2025, and to discuss the potential distribution of an interim dividend, if any [1] - The company has issued a profit warning, expecting a net loss attributable to shareholders not to exceed 2 million [1]

（ 於開曼群島註冊成立的有限公司） （股份代號：9906） 董事會會議召開日期 宏力醫療管理集團有限公司（「本公司」連同其附屬公司，「本集團」）董事會 （「董事會」）謹此宣佈，本公司將於二零二五年八月二十九日（ 星期五 ）舉行 董事會會議，藉以（ 其中包括 ）考慮及通過本集團截至二零二五年六月三十 日 止六 個月 的中 期業 績及 發佈 ，並 考慮 派發 中期 股息（ 如 有 ），以 及處 理其 他事項。 承董事會命 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 的 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 致的 任 何 損 失承 擔任何責任。 Honliv Healthcare Management Group Company Limited 宏 力 醫 療 管 理 集 團 有 限 公 司 董事長 秦岩 香港，二零二五年八月十九日 於 本 公告 日 期 ， 董 事會 成 員 包 ...