Financial Performance - Honliv Healthcare reported a revenue increase of 15% year-over-year, reaching HKD 1.2 billion for the fiscal year 2024[2]. - The company achieved a net profit margin of 10%, translating to a net profit of HKD 120 million for the same period[2]. - Future guidance estimates a revenue growth of 12% for the next fiscal year, projecting revenues of approximately HKD 1.34 billion[2]. - The total comprehensive income for the year ended December 31, 2024, was RMB 768.7 million, an increase of 1.1% compared to RMB 760.5 million for the year ended December 31, 2023[13][21]. - Total revenue for 2024 reached RMB 768.7 million, with treatment and comprehensive medical services accounting for 59.4% and drug sales for 40.2%[32]. - Drug sales revenue grew by 4.7% to RMB 308.9 million in 2024, up from RMB 294.9 million in 2023, primarily due to increased outpatient drug sales[24]. - Outpatient medical service revenue rose by 8.0% from RMB 402.6 million to RMB 434.7 million, driven by an increase in outpatient visits and per-visit costs[33]. - Inpatient medical service revenue decreased by 7.6% from RMB 357.9 million to RMB 330.6 million, primarily due to a reduction in inpatient visits and per-visit costs[33]. - Cost of sales increased by 4.3% from RMB 615.7 million to RMB 642.0 million, mainly due to higher pharmaceutical costs and depreciation[34]. - Gross profit decreased by 12.5% from RMB 144.8 million to RMB 126.7 million, with gross margin declining from 19.0% to 16.5%[35]. - Administrative expenses increased by 5.5% from RMB 72.4 million to RMB 76.4 million, primarily due to higher depreciation and amortization expenses[38]. - Net profit decreased by 18.7% from RMB 38.7 million to RMB 31.5 million, with net profit margin declining from 5.1% to 4.1%[41]. Operational Efficiency - Management highlighted a focus on improving operational efficiency, aiming for a 5% reduction in operational costs by the end of 2025[2]. - The company is focusing on cost control and efficiency improvements, including standardizing clinical pathways and integrating supply chains[25]. - The company aims to optimize patient admission structures based on DRG data to improve cost-effectiveness and resource utilization[25]. - The company is committed to improving operational efficiency and service quality in response to increasing competition and patient demand in the healthcare market[20]. Market Expansion and Strategy - Honliv Healthcare plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share over the next three years[2]. - The company is exploring potential acquisitions to diversify its service offerings, with a budget of HKD 200 million allocated for this purpose[2]. - Future strategies include advancing smart hospital construction and enhancing key specialty development to align with industry trends[30]. - The company aims to leverage technological breakthroughs and innovative models to drive growth in the evolving Chinese healthcare market[15]. - The company is responding to the dual pressures of policy reform and demand upgrades by enhancing its competitiveness through specialization, service innovation, and technological breakthroughs[20]. Patient and Service Metrics - User data indicated a growth in active patients by 20%, totaling 150,000 active patients by the end of 2024[2]. - The total number of inpatient visits was 52,940, a decrease of 3.4% from 54,795 in the previous year[22]. - The total number of outpatient visits increased by 2.8% to 1,440,183 from 1,400,791 in the previous year[22]. - Outpatient visits increased by 2.8% to 1,440,183 in 2024, while inpatient visits decreased by 3.4% to 52,940[23]. - The company has launched a new telehealth service, expecting to attract an additional 30,000 users within the first year[2]. Governance and Compliance - Honliv Healthcare's board of directors emphasized the importance of corporate governance and compliance with the latest regulations to maintain investor confidence[2]. - The group emphasizes compliance with regulatory requirements and continues to strengthen internal control compliance management[80]. - The company has established a compliant pollutant control system to meet relevant legal requirements regarding environmental protection[74]. - The company has adopted a standard code of conduct for securities trading by directors[170]. Employee and Shareholder Information - The total number of full-time employees as of December 31, 2024, was 1,955, a decrease from 1,969 employees as of December 31, 2023[65]. - Employee costs for the fiscal year 2024 were approximately RMB 210.9 million, compared to RMB 217.5 million for the fiscal year 2023[65]. - The company raised approximately HKD 264.8 million from the global offering by issuing 150,000,000 shares at HKD 2.10 per share[67]. - As of December 31, 2024, the unutilized net proceeds from the global offering amounted to HKD 69.2 million[68]. - The group did not recommend the distribution of a final dividend for the year ending December 31, 2024[82]. Share Option and Incentive Plans - The company has a share option plan approved on June 17, 2020, which is valid for ten years[119]. - The share option plan allows the company to grant options to selected participants as an incentive for their contributions[120]. - The maximum number of shares that can be issued under the share option plan is capped at 30% of the company's issued share capital[124]. - The general limit for shares that can be issued under the share option plan is set at 10%, equivalent to 60,000,000 shares[124]. - The company adopted the 2022 Restricted Share Unit Plan on August 22, 2022, to recognize and incentivize participants for their contributions[134]. - The 2023 Restricted Share Unit Plan was adopted on May 9, 2023, aimed at recognizing and incentivizing employees of acquired entities[147]. Financial Position and Cash Flow - Cash and cash equivalents increased to approximately RMB 258.5 million from RMB 239.8 million, with bank loans slightly decreasing from RMB 138.0 million to RMB 137.0 million[42]. - The net cash used in investing activities decreased from RMB 88.8 million for the year ended December 31, 2023, to RMB 51.4 million for the year ending December 31, 2024, primarily due to a reduction in expenditures for updating facilities and purchasing equipment by RMB 37.4 million[55]. - The net cash used in financing activities decreased from RMB 19.1 million for the year ended December 31, 2023, to RMB 13.3 million for the year ending December 31, 2024, mainly due to new borrowings of RMB 156.7 million and repayments of borrowings and related interest of RMB 168.4 million[56]. - As of December 31, 2024, the debt-to-asset ratio was 40.6%, down from 43.5% as of December 31, 2023[59]. Audit and Governance Structure - The independent auditor for the year ending December 31, 2024, was PwC, with total fees amounting to RMB 1.95 million[181]. - The audit committee consists of three independent non-executive directors as of the date of the report[165]. - The company has established a remuneration committee responsible for evaluating the performance of directors and senior management, which includes three independent non-executive directors[166]. - The company has a nomination committee that includes one executive director and three independent non-executive directors, responsible for identifying candidates for the board and senior management[167].

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分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 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股 份 代 號：9906） 截至二零二四年十二月三十一日止年度的 年度業績公告及提名委員會組成變動 | 財務概要 | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | 截至十二月三十一日 | | | | | | | | 止年度 | | | | | | | 二零二四年 | 二零二三年 | 變 | 動 | | | | | 人民幣千元 | 人民幣千元 | | % | | 收 入 | | | 768,725 | 760,527 | | 1.1 | | 毛 利 | | | 126 ...

Financial Performance - Honliv Healthcare reported a revenue increase of 15% year-over-year for the first half of 2024, reaching HKD 500 million[2]. - The group's consolidated revenue for the first half of 2024 was RMB 415.2 million, an increase of RMB 44.7 million or 12.1% compared to RMB 370.5 million for the same period in 2023[6]. - The company reported a net profit of HKD 80 million, representing a 12% increase compared to the same period last year[2]. - The net profit for the six months ended June 30, 2024, decreased by 17.3% to RMB 20.3 million, with a net profit margin of 4.9%[30]. - The company reported a revenue of RMB 415,178,000 for the six months ended June 30, 2024, representing a 12.0% increase from RMB 370,467,000 in the same period of 2023[87]. - The net profit attributable to equity holders was RMB 20,042,000, a decrease of 17.0% compared to RMB 24,263,000 in the prior year[90]. Patient Services and Growth - The number of patients treated at Honliv Healthcare facilities grew by 20%, totaling 150,000 patients in the reporting period[2]. - The company plans to expand its services to three new locations in China by the end of 2024, aiming for a 25% increase in patient capacity[2]. - Honliv Healthcare has launched a new telemedicine service, expecting to attract an additional 10,000 patients by the end of the year[2]. - Revenue from outpatient medical services increased by 16.3% to RMB 224.9 million, driven by an increase in patient visits and average outpatient fees[24]. - Revenue from inpatient medical services rose by 7.3% to RMB 189.9 million, primarily due to an increase in inpatient visits[24]. Cost Management and Profitability - The gross profit margin improved to 35%, up from 30% in the previous year, indicating better cost management[2]. - Gross profit for the six months ended June 30, 2024, was RMB 71.6 million, a 2.4% increase from RMB 70.0 million in the same period of 2023, with a gross margin decrease from 18.9% to 17.3%[26]. - Total sales costs increased by 14.3% to RMB 343.6 million, mainly due to higher drug costs and employee benefits[25]. - The average cost per inpatient was RMB 6,498.2, up 1.4% from RMB 6,409.5 in the previous year[11]. - The average cost per outpatient was RMB 300.4, representing a 9.8% increase from RMB 273.6[13]. Investments and Technology - Honliv Healthcare is investing HKD 50 million in new medical technology and equipment to enhance service quality and operational efficiency[2]. - The group plans to enhance smart hospital construction and improve medical service capabilities while leveraging digital healthcare technologies[5]. - The company is exploring potential acquisition opportunities to strengthen its market position in the healthcare sector[2]. Corporate Governance and Compliance - Honliv Healthcare is committed to enhancing its corporate governance practices in line with the latest regulatory requirements[2]. - The company has complied with all applicable corporate governance codes during the reporting period, except for the separation of roles between the Chairman and CEO[80]. Shareholder Information and Stock Options - As of June 30, 2024, the company has issued 600,000,000 shares[50]. - Major shareholders include Cao Jianming with 443,983,500 shares (74.00%) and Rubrical Investment with 133,195,050 shares (22.20%)[49]. - The company has a stock option plan approved on June 17, 2020, valid for ten years[52]. - The stock option plan aims to incentivize selected participants for their contributions to the company[53]. - The total number of shares that may be issued under the stock option plan cannot exceed 30% of the company's issued share capital[55]. Cash Flow and Financial Position - Net cash generated from operating activities increased from RMB 46.4 million for the six months ended June 30, 2023, to RMB 57.3 million for the six months ended June 30, 2024, attributed to increased operating profit[40]. - The company's debt-to-asset ratio as of June 30, 2024, was 42.8%, a slight decrease from 43.5% as of December 31, 2023[45]. - The company secured an additional loan facility of RMB 60 million from a bank, which can be drawn until March 5, 2025, but has not yet utilized this facility[95]. - The company’s current liabilities exceeded its current assets by RMB 42,855,000 as of June 30, 2024[95]. - Management believes that the company will have sufficient financial resources to support operations and meet financial obligations due within the next twelve months[96]. Employee and Operational Metrics - Employee costs for the six months ended June 30, 2024, amounted to RMB 118.1 million, an increase from RMB 107.4 million for the same period in 2023[84]. - The total number of employees as of June 30, 2024, was approximately 1,953, up from 1,886 a year earlier[84]. - Total compensation for key management personnel for the six months ended June 30, 2024, was RMB 2,072,000, a slight increase from RMB 2,054,000 in the same period of 2023[140]. Related Party Transactions - The company provided free parking spaces to Henan Hongli General Aviation Co., Ltd. for the six months ended June 30, 2024, and June 30, 2023[136]. - Rental income from related parties for the six months ended June 30, 2024, was RMB 138,000, a decrease of 30.3% from RMB 198,000 for the same period in 2023[137]. - The company’s related party transactions are conducted in the ordinary course of business based on negotiated terms[135].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 415,178, an increase of 12.1% compared to RMB 370,467 for the same period in 2023[1] - Gross profit for the same period was RMB 71,621, reflecting a 2.4% increase from RMB 69,950 in 2023[1] - Profit attributable to owners of the company decreased by 17.4% to RMB 20,042 from RMB 24,263 in the prior year[1] - Basic and diluted earnings per share remained unchanged at RMB 0.04 for both periods[3] - Operating profit for the six months was RMB 31,833, down from RMB 33,683 in the previous year[2] - The net profit attributable to the company's owners for the six months ended June 30, 2024, was RMB 20,042,000, down from RMB 24,263,000 in the same period of 2023[16] - Net profit decreased by 17.3% from RMB 24.5 million for the six months ended June 30, 2023, to RMB 20.3 million for the six months ended June 30, 2024, with net profit margin at 6.6% and 4.9% respectively[40] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 992,674, compared to RMB 968,709 as of December 31, 2023[4] - Total equity increased to RMB 567,710 from RMB 547,447 at the end of the previous year[5] - Non-current assets totaled RMB 627,045, slightly down from RMB 632,979 at the end of 2023[4] - Current assets increased to RMB 365,629 from RMB 335,730 at the end of the previous year[4] - As of June 30, 2024, the group's current liabilities exceeded its current assets by RMB 42,855,000, with cash and cash equivalents amounting to RMB 260,203,000[8] - Trade payables increased to RMB 125.676 million as of June 30, 2024, compared to RMB 94.461 million as of December 31, 2023[21] - Trade receivables as of June 30, 2024, amounted to RMB 99,344,000, with a provision for impairment of RMB 22,336,000, resulting in a net value of RMB 77,008,000[19] - Trade receivables increased by 143.3% from RMB 31.6 million as of December 31, 2023, to RMB 77.0 million as of June 30, 2024[42] - Inventory decreased by 35.0% from RMB 31.9 million as of December 31, 2023, to RMB 20.7 million as of June 30, 2024[41] Revenue Breakdown - Revenue from medical and comprehensive healthcare services was RMB 250,041,000, up from RMB 228,587,000, representing a growth of 9.3%[12] - Pharmaceutical sales increased to RMB 164,739,000 from RMB 141,880,000, reflecting a growth of 16.1%[12] - Total revenue from treatment and comprehensive medical services, pharmaceutical sales, and postpartum care services rose by 12.1% to RMB 415.2 million from RMB 370.5 million[32] - The revenue from outpatient medical services accounted for 54.2% of total revenue, increasing from 52.2% in the previous year[31] - Outpatient medical service revenue increased by 16.3% from RMB 193.4 million for the six months ended June 30, 2023, to RMB 224.9 million for the six months ending June 30, 2024[33] - Inpatient medical service revenue rose by 7.3% from RMB 177.0 million for the six months ended June 30, 2023, to RMB 189.9 million for the six months ending June 30, 2024[33] Operational Metrics - The number of emergency and outpatient visits for the six months ended June 30, 2024, was 748,721, up 5.9% from 707,008 for the same period in 2023[24] - The number of inpatient visits for the six months ended June 30, 2024, was 29,218, an increase of 5.8% from 27,620 for the same period in 2023[24] - Total inpatient visits reached 29,218, an increase of 5.8% compared to 27,620 in the same period last year[25] - Average inpatient cost per visit was RMB 6,498.2, up 1.4% from RMB 6,409.5 in the previous year[25] - Outpatient visits totaled 748,721, reflecting a growth of 5.9% from 707,008 in the same period last year[25] - Average outpatient cost per visit increased by 9.8% to RMB 300.4 from RMB 273.6[25] - The number of operating beds remained stable at 1,500, with an average length of stay of 8.8 days, down 1.1% from 8.9 days[25] Cash Flow and Financing - Cash generated from operating activities was RMB 57.3 million for the six months ending June 30, 2024, compared to RMB 46.4 million for the same period in 2023[49] - Operating cash flow increased from RMB 46.4 million for the six months ended June 30, 2023, to RMB 57.3 million for the six months ended June 30, 2024, primarily due to increased operating profit[50] - Net cash used in investing activities decreased from RMB 37.8 million for the six months ended June 30, 2023, to RMB 23.0 million for the six months ended June 30, 2024, mainly due to reduced payments for the purchase of property, plant, and equipment by RMB 16.0 million[51] - Financing activities generated cash flow of RMB 9.5 million for the six months ended June 30, 2023, while cash used in financing activities was RMB 14.0 million for the six months ended June 30, 2024, primarily due to repayment of loans amounting to RMB 8.9 million[52] - The company's debt-to-asset ratio was 42.8% as of June 30, 2024, compared to 43.5% as of December 31, 2023[55] Strategic Initiatives - The company aims to promote the construction of smart hospitals and enhance medical service capabilities[23] - The company plans to explore new medical models and leverage policy benefits to align with national healthcare reforms[23] - The company is focused on improving medical quality and safety while expanding its business scale through various investment strategies[23] - The group is actively expanding service areas and enhancing patient experience through smart hospital initiatives and quality control activities[26] - The group published 22 medical research papers and received 6 provincial-level technology achievement certificates in the first half of 2024[29] Employee and Governance - The total number of employees as of June 30, 2024, is approximately 1,953, an increase from 1,886 as of June 30, 2023[65] - Employee costs for the six months ended June 30, 2024, amounted to approximately RMB 118.1 million, compared to RMB 107.4 million for the same period in 2023, reflecting an increase of about 10.5%[65] - The board of directors includes three independent non-executive directors, ensuring governance and oversight[63] - The audit committee has reviewed the unaudited interim results for the six months ended June 30, 2024, and believes they are prepared in accordance with applicable accounting standards[63] - The independent auditor has conducted a review of the interim financial information for the reporting period[63] Dividend and Share Capital - The company did not declare an interim dividend for the six months ended June 30, 2024[22] - The company does not recommend the payment of any interim dividend for the six months ended June 30, 2024[64] - The company has maintained at least 25% of its total issued share capital held by the public as of the announcement date[59] Post-Reporting Events - No significant events occurred after the reporting period as of the announcement date[60] - The interim results announcement is available on the Hong Kong Stock Exchange website and the company's website[67] - The company expresses gratitude to its management team and employees for their contributions to the group's success[68] Use of Proceeds - The net proceeds from the global offering amounted to approximately HKD 264.8 million, after deducting related underwriting fees and expenses[56] - As of June 30, 2024, the company had utilized HKD 195.6 million of the net proceeds from the global offering, with HKD 69.2 million remaining unutilized[57] - 29.5% of the net proceeds from the global offering is allocated for the expansion of the company's Phase I building, with an amount of HKD 78.0 million fully utilized[57] - 26.1% of the net proceeds is designated for funding the acquisition of hospitals to expand the company, with HKD 69.2 million yet to be utilized[57]

Financial Performance - The consolidated revenue for the year ended December 31, 2023, was RMB 760.5 million, an increase of RMB 32.7 million or 4.5% compared to RMB 727.8 million for the year ended December 31, 2022[20]. - The group's total revenue for the year ended December 31, 2023, was RMB 760.5 million, an increase of 4.5% compared to the same period last year[32]. - The total revenue from hospital services and pharmaceutical sales increased by 4.5% from RMB 727.8 million in the year ended December 31, 2022, to RMB 760.5 million in the year ended December 31, 2023, primarily due to an increase in outpatient and inpatient visits[70]. - Inpatient medical service revenue rose by 10.0% from RMB 325.4 million in the year ended December 31, 2022, to RMB 357.9 million in the year ended December 31, 2023, driven by an increase in inpatient visits[71]. - Gross profit increased by 4.6% from RMB 138.4 million in the year ended December 31, 2022, to RMB 144.8 million in the year ended December 31, 2023, maintaining a gross profit margin of 19.0%[72]. - Net profit decreased by 21.6% from RMB 49.3 million in the year ended December 31, 2022, to RMB 38.7 million in the year ended December 31, 2023, resulting in a net profit margin of 5.1%[75]. Operational Metrics - The total number of inpatient visits was 54,795, representing a year-on-year growth of 7.6%[37]. - The total number of outpatient visits reached 1,400,791, reflecting an increase of 8.9% year-on-year[37]. - The average cost per inpatient was RMB 6,394.4, a slight increase of 0.1% from RMB 6,385.2 in the previous year[37]. - The average cost per outpatient was RMB 287.4, down 8.1% from RMB 312.7 in the previous year[37]. - Outpatient medical service revenue was RMB 402.6 million, a marginal increase from RMB 402.4 million in the previous year, primarily due to an increase in outpatient visits despite a decrease in average costs[49]. - The average length of stay for inpatients decreased to 9.3 days, down 3.5% from 9.6 days in the previous year[195]. - The number of surgical procedures performed increased to 13,159, reflecting a growth of 4.5% from 12,588 in 2022[195]. Strategic Initiatives - The group has focused on enhancing overall medical service levels, particularly through the development of elderly-friendly hospitals and home care services[24]. - The group has implemented various measures to adapt to healthcare payment reform policies, aiming to increase revenue and reduce costs[25]. - The group aims to enhance its hospital quality management system and strengthen compliance awareness to ensure medical quality and safety[44]. - The company plans to enhance talent development and strengthen partnerships with educational institutions to build a high-quality medical team to serve the growing patient base[65]. - The company is actively seeking investment targets to support its business expansion and improve service offerings in response to the aging population's healthcare needs[65]. - The company aims to expand its business scale through external growth and management output, targeting a group development goal[65]. Research and Development - The group has achieved significant recognition in medical research, with awards such as the second prize in the Natural Science Academic Achievement Award for a clinical efficacy study on esophageal squamous cell carcinoma[26]. - The group has developed multiple information systems recognized as scientific and technological achievements by the Henan Provincial Department of Science and Technology[26]. - The group has developed and applied a home care intelligent nursing information system, which has been approved as a joint construction project by the Henan Provincial Health Commission[42]. Financial Position - The net current liabilities increased from RMB 44.2 million to RMB 59.7 million, mainly due to a decrease in trade receivables during the reporting period[56]. - Trade receivables decreased by 33.2% from RMB 47.4 million to RMB 31.6 million due to settlements with the medical insurance bureau and provisions for bad debts[95]. - Borrowings increased from RMB 141.0 million to RMB 176.5 million, an increase of RMB 35.5 million during the reporting period due to new borrowings[97]. - Trade payables rose from RMB 101.9 million to RMB 124.5 million, an increase of RMB 22.6 million, primarily due to new payables of RMB 30.0 million[98]. - Cash generated from operating activities decreased from RMB 118.5 million to RMB 91.6 million, mainly due to a reduction in operating profit[101]. - Net cash used in investing activities increased significantly from RMB 19.2 million to RMB 88.8 million, primarily due to increased payments for plant upgrades and equipment purchases of RMB 89.3 million[102]. - Net cash used in financing activities decreased from RMB 117.8 million to RMB 19.1 million, influenced by new borrowings of RMB 183.0 million and repayments of borrowings and related interest of RMB 147.5 million[104]. - The asset-liability ratio increased to 43.5% from 40.7%[107]. Corporate Governance and Social Responsibility - The group has strengthened its social responsibility initiatives, contributing positively to community health[26]. - The group is committed to sustainable management and fulfilling social responsibilities as part of its corporate culture[43]. - The company emphasizes the importance of employee training and safety, regularly conducting performance reviews and compliance education[142]. - The company has invested in liability insurance to provide appropriate protection for its directors[130]. - The company does not recommend the distribution of a final dividend for the year ending December 31, 2023[144]. - The company's dividend policy will be reviewed periodically and does not guarantee any specific amount of dividends during any designated period[148]. - The company has not reported any changes in the independence of its independent non-executive directors[167]. Market Position and Future Outlook - The healthcare sector is facing both opportunities and challenges, with increasing demands for improved service quality and efficiency[14]. - The company aims to leverage favorable market conditions and continue striving for better performance in the future[197]. - Revenue from the top five customers accounted for less than 1.0% of total revenue for the year ended December 31, 2023[174]. - Approximately 60.6% of total procurement for the year ending December 31, 2023, was from the top five suppliers, compared to 55.9% in 2022[156]. - The procurement amount from the largest supplier accounted for about 32.2% of total procurement for the year ending December 31, 2023, up from 30.8% in 2022[156].

Financial Performance - For the fiscal year ending December 31, 2023, the company reported total revenue of RMB 760,527,000, representing a 4.5% increase from RMB 727,789,000 in 2022[12]. - Gross profit for the same period was RMB 144,844,000, up 4.7% from RMB 138,395,000 in the previous year[12]. - The profit attributable to the company's owners decreased by 21.7% to RMB 38,310,000 from RMB 48,947,000 in 2022[12]. - Basic and diluted earnings per share were RMB 0.07, down 12.5% from RMB 0.08 in the prior year[12]. - Total comprehensive income for the year was RMB 38,698,000, down from RMB 49,343,000 in 2022[14]. - The net profit attributable to the company's owners for the year ended December 31, 2023, was RMB 38,310,000, down from RMB 48,947,000 in 2022, reflecting a decrease of approximately 21.6%[51]. - Basic earnings per share for the year ended December 31, 2023, was RMB 0.07, compared to RMB 0.08 in the previous year, indicating a decline in profitability per share[51]. - Net profit decreased by 21.6% from RMB 49.3 million for the year ended December 31, 2022, to RMB 38.7 million for the year ended December 31, 2023, with net profit margins of 6.8% and 5.1%, respectively[118]. Assets and Liabilities - The company's total assets as of December 31, 2023, amounted to RMB 968,709,000, compared to RMB 935,038,000 in 2022[9]. - As of December 31, 2023, the company had current liabilities exceeding current assets by RMB 59,735,000[26]. - Total assets as of December 31, 2023, were RMB 968,709,000, an increase from RMB 935,038,000 in 2022, showing a growth of approximately 3.6%[48]. - Non-current assets totaled RMB 632,979,000, up from RMB 601,746,000 in the previous year, representing an increase of about 5.2%[48]. - Current assets increased slightly to RMB 335,730,000 from RMB 333,292,000, indicating a marginal growth of approximately 0.7%[48]. - Trade receivables net value decreased to RMB 31.645 million in 2023 from RMB 47.358 million in 2022, reflecting a significant increase in impairment losses[86]. - Trade receivables decreased by 33.2% from RMB 474 million to RMB 316 million, mainly due to the settlement of receivables from the medical insurance bureau and provisions for bad debts[143]. - The net amount of current liabilities increased from RMB 442 million to RMB 597 million, mainly due to a decrease in trade receivables by RMB 157 million[170]. - The company's asset-liability ratio increased to 43.5% as of December 31, 2023, compared to 40.7% as of December 31, 2022[181]. Cash Flow - Cash and cash equivalents stood at RMB 239,755,000 as of December 31, 2023[26]. - Net cash generated from operating activities decreased from RMB 118.5 million for the year ended December 31, 2022, to RMB 91.6 million for the year ended December 31, 2023, primarily due to a reduction in operating profit[177]. - Net cash used in investing activities increased significantly from RMB 19.2 million for the year ended December 31, 2022, to RMB 88.8 million for the year ended December 31, 2023, mainly due to increased payments for the renovation of factories and equipment purchases totaling RMB 89.3 million[178]. - Net cash used in financing activities decreased from RMB 117.8 million for the year ended December 31, 2022, to RMB 19.1 million for the year ended December 31, 2023, primarily due to new borrowings of RMB 183.0 million and repayments of borrowings and related interest of RMB 147.5 million[178]. - The net decrease in cash and cash equivalents was RMB 16.3 million for the year ended December 31, 2023, compared to RMB 18.5 million for the year ended December 31, 2022[177]. Revenue Segments - Revenue from treatment and comprehensive medical services was RMB 465,598,000, while pharmaceutical sales amounted to RMB 294,929,000, indicating strong performance in both segments[48]. - The total revenue from treatment and comprehensive medical services was RMB 465.6 million, accounting for 61.2% of total revenue, while drug sales contributed RMB 294.9 million, accounting for 38.8%[108]. - Inpatient medical service revenue increased by 10.0% to RMB 357.9 million from RMB 325.4 million in the previous year, primarily due to an increase in inpatient visits[111]. - Revenue from drug sales amounted to RMB 294.9 million, representing an increase of 11.5% from RMB 264.6 million in the previous year[97]. - Outpatient medical service revenue increased slightly from RMB 402.4 million for the year ended December 31, 2022, to RMB 402.6 million for the year ended December 31, 2023, due to an increase in outpatient visits despite a decrease in average cost per visit[135]. Operational Metrics - Outpatient visits increased by 8.9% to 1,400,791 in 2023 from 1,286,815 in 2022, while inpatient visits rose by 7.6% to 54,795[73]. - The average cost per outpatient visit decreased by 8.1% to RMB 287.4 in 2023 from RMB 312.7 in 2022[73]. - The average length of stay for inpatients improved slightly to 9.3 days in 2023 from 9.6 days in 2022, reflecting a 3.5% decrease[73]. - The total number of inpatient visits reached 54,795, an increase of 7.6% compared to the previous year, which had 50,920 visits[95]. - The average cost per inpatient was RMB 6,394.4, a slight increase of 0.1% from RMB 6,385.2 in the previous year[95]. Strategic Initiatives - The company plans to secure an additional loan of RMB 60 million from an existing bank by March 5, 2024, subject to bank approval[27]. - The company plans to continue expanding its business scope and improving service chains in response to the aging population and healthcare service demands[105]. - The company has achieved a good balance between medical research and hospital management, with significant achievements in clinical efficacy and software development[102]. - The company plans to enhance talent cultivation and strengthen the mechanism for joint talent training with educational institutions to better serve the growing patient base[130]. - The group is actively implementing ESG development concepts to achieve high-quality green development[77]. Management and Governance - The company’s chairman and CEO, Mr. Qin Yan, is expected to provide strong and consistent leadership for effective business decision-making[161]. - The company will seek shareholder approval to amend its current articles of association to comply with revised listing rules[168]. - The company’s auditor confirmed that the financial statements for the year ended December 31, 2023, are consistent with the audited consolidated financial statements[164]. Miscellaneous - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[159]. - The company has adopted a restricted share unit plan on May 9, 2023, with no sales of restricted shares during the reporting period[182]. - The company did not have any contingent liabilities or guarantees that would significantly impact its financial position or operations as of December 31, 2023[175].

Financial Performance - Revenue for the first half of 2023 was RMB 370,467 thousand, a decrease of 0.73% compared to RMB 374,742 thousand in the same period of 2022[44]. - Gross profit for the first half of 2023 was RMB 69,950 thousand, down 16.3% from RMB 83,571 thousand in the first half of 2022[44]. - Operating profit decreased to RMB 33,683 thousand, a decline of 19.6% from RMB 41,848 thousand in the previous year[44]. - Profit before tax was RMB 32,103 thousand, down 23.4% from RMB 41,831 thousand in the same period last year[44]. - Net profit for the first half of 2023 was RMB 24,499 thousand, a decrease of 24.5% compared to RMB 32,455 thousand in the first half of 2022[44]. - Basic and diluted earnings per share for the first half of 2023 were RMB 0.04, down from RMB 0.05 in the same period of 2022[44]. - The net profit attributable to the company's owners for the six months ended June 30, 2023, was RMB 24,263,000, a decrease from RMB 32,173,000 in 2022[187]. Operational Metrics - Outpatient visits increased to 707,008 for the six months ended June 30, 2023, compared to 643,476 in the same period of 2022, representing an increase of approximately 9.9%[3]. - Inpatient visits rose to 27,620, up from 24,863, marking an increase of approximately 11.2%[3]. - Average outpatient fee decreased to RMB 273.6 from RMB 300.7, a decline of about 9.0% year-over-year[3]. - Average inpatient fee decreased to RMB 6,409.5 from RMB 7,289.2, a decline of about 12.0% year-over-year[3]. Expenses and Costs - Administrative expenses increased by 4.9% to RMB 36.9 million from RMB 35.2 million, primarily due to higher employee benefits costs[6]. - Financial income decreased significantly to RMB 1,657 thousand from RMB 4,916 thousand, a decline of 66.3%[44]. - The cost of pharmaceuticals increased to RMB 118,007,000 in 2023 from RMB 114,869,000 in 2022, while medical staff welfare expenses rose to RMB 107,422,000 from RMB 90,692,000[180]. - Financial costs totaled RMB 3,237,000 for the six months ended June 30, 2023, down from RMB 4,933,000 in the same period of 2022[182]. Cash Flow and Investments - Net cash used in investing activities increased significantly to RMB 37.8 million from RMB 4.6 million, primarily due to higher payments for property, plant, and equipment[14]. - The net cash generated from operating activities for the six months ended June 30, 2023, was RMB 46.4 million, compared to RMB 40.8 million for the same period in 2022, reflecting an increase of 13.9%[140]. - The company incurred cash outflows of RMB 37.5 million for the purchase of property, plant, and equipment during the reporting period, compared to RMB 4.3 million in the previous year[140]. - The company reported a net increase in cash and cash equivalents of RMB 18.1 million for the six months ended June 30, 2023, compared to RMB 3.7 million for the same period in 2022, showing a growth of 389.2%[140]. - As of June 30, 2023, the total cash and cash equivalents amounted to RMB 274.4 million, compared to RMB 272.0 million as of June 30, 2022, reflecting a slight increase of 0.5%[140]. Financial Position - As of June 30, 2023, the total assets of the company amounted to RMB 957,913,000, an increase from RMB 935,038,000 as of December 31, 2022, representing a growth of approximately 2.0%[142][145]. - Total liabilities rose to RMB 393,988,000 from RMB 380,367,000, indicating an increase of approximately 3.9%[145]. - The company's retained earnings improved significantly to RMB 191,673,000, up from RMB 167,410,000, marking an increase of around 14.5%[142]. - Current liabilities exceeded current assets by RMB 20,558,000, highlighting a liquidity concern for the company[151]. - The total liabilities as of June 30, 2023, amounted to RMB 357,105,000, compared to RMB 336,442,000 as of December 31, 2022[177]. Shareholder and Governance Matters - The company plans to implement a stock option scheme to incentivize employees and directors, aiming to enhance contributions to the company's growth[47]. - The company raised a total of HKD 264.8 million from the global offering, issuing 150,000,000 shares at HKD 2.10 per share[71]. - The company confirms that at least 25% of its total issued share capital is held by the public as of the report date[113]. - The company has complied with all applicable code provisions of the Corporate Governance Code during the reporting period[117]. - The chairman and CEO, Mr. Qin Yan, is believed to provide strong and consistent leadership for effective business decision-making[118]. Future Plans and Strategies - The company plans to use the unutilized proceeds for the construction of a postpartum care center, aligning with its strategy to provide quality medical services and capture growth opportunities[75]. - The company aims to expand its business by acquiring hospitals, with 26.1% of the net proceeds (HKD 69.2 million) allocated for this purpose[73]. - The company has earmarked 6.3% of the net proceeds (HKD 16.7 million) for the development of its pharmaceutical supply business[73]. - The company is in the process of developing new postpartum care services, which are expected to be profitable due to the growing market in China[75]. Risk Management - The group has faced various financial risks, including market risk, credit risk, and liquidity risk, with no changes to risk management policies since year-end[197][198]. - The group aims to maintain sufficient cash and cash equivalents to meet operational capital requirements, reflecting a focus on liquidity management[199].

Financial Performance - For the six months ended June 30, 2023, the company's revenue was RMB 370,467 thousand, a decrease of 1.1% compared to RMB 374,742 thousand in the same period of 2022 [47]. - Gross profit for the same period was RMB 69,950 thousand, reflecting a decline of 16.3% from RMB 83,571 thousand year-over-year [47]. - Profit attributable to owners of the company for the six months was RMB 24,263 thousand, down 24.6% from RMB 32,173 thousand in the prior year [47]. - Basic and diluted earnings per share decreased by 20.0% to RMB 0.04 from RMB 0.05 in the previous year [47]. - The consolidated revenue for the six months ended June 30, 2023, was RMB 370.5 million, a decrease of 1.1% from RMB 374.7 million for the same period in 2022 [73]. - The company reported a net profit of RMB 24.5 million for the six months ended June 30, 2023, down 24.5% from RMB 32.5 million in the same period of 2022 [177]. Cash Flow and Financing - As of June 30, 2023, the financing activities generated cash of RMB 9.5 million, compared to cash used of RMB 32.5 million for the same period in 2022, primarily due to new borrowings of RMB 28.1 million [2]. - The net increase in cash and cash equivalents for the period was RMB 18.1 million, compared to RMB 3.7 million in the previous year, indicating improved liquidity [168]. - The company has not utilized the additional loan facility of RMB 60 million obtained from a bank as of the reporting date [179]. - The company aims to use 15% of the funds (RMB 39.8 million) for repaying general borrowings, particularly for loans totaling RMB 63.0 million from two banks [41]. Assets and Liabilities - The total assets as of June 30, 2023, were RMB 957,913,000, compared to RMB 935,038,000 as of December 31, 2022, reflecting a growth of 2.4% [77]. - The company's current liabilities exceeded current assets by RMB 20.6 million as of June 30, 2023, with cash and cash equivalents amounting to RMB 274.35 million [148]. - Total liabilities increased from RMB 380.37 million as of December 31, 2022, to RMB 393.99 million as of June 30, 2023 [147]. - Borrowings increased from RMB 141.0 million as of December 31, 2022, to RMB 169.1 million as of June 30, 2023, an increase of RMB 28.1 million due to new borrowings during the reporting period [164]. Corporate Governance - The company has complied with all applicable corporate governance codes during the reporting period, with no significant changes in the nature of its business [18]. - The audit committee consists of three independent non-executive directors, ensuring effective oversight of financial reporting [20]. - The company is committed to enhancing its corporate governance in accordance with the listing rules [30]. Employee and Administrative Costs - The total number of employees as of June 30, 2023, was approximately 1,886, an increase from 1,877 as of June 30, 2022 [24]. - Employee costs for the six months ended June 30, 2023, were approximately RMB 107.4 million, compared to RMB 90.7 million for the same period in 2022, representing an increase of about 18.5% [24]. - Administrative expenses increased by 4.9% to RMB 36.9 million for the six months ended June 30, 2023, from RMB 35.2 million for the same period in 2022, mainly due to increased employee benefits [109]. Investment Activities - The net cash used in investment activities increased from RMB 4.6 million for the six months ended June 30, 2022, to RMB 37.8 million for the same period in 2023, primarily due to increased payments for property, plant, and equipment by RMB 33.2 million [34]. - The company plans to allocate 29.5% of the raised funds (RMB 78.0 million) for the expansion of its first-phase building [41]. - 26.1% of the funds (RMB 69.2 million) will be used for acquiring hospitals to expand the company's business [41]. Market and Operational Insights - The number of outpatient visits and inpatient admissions increased due to improved diagnostic and treatment capabilities, as well as expanded medical service offerings [74]. - The number of inpatient visits increased to 27,620 for the six months ended June 30, 2023, representing an 11.09% increase from 24,863 in the same period of 2022 [97]. - The average cost per inpatient decreased to RMB 6,409.5, down 12.07% from RMB 7,289.2 in the same period of 2022 [97]. - The company aims to enhance core competitiveness and brand influence by expanding service types and improving service chains [72]. Revenue Breakdown - Revenue from treatment and comprehensive medical services was RMB 228,587 thousand, down from RMB 238,292 thousand in the same period last year [62]. - Pharmaceutical sales increased to RMB 141,880 thousand from RMB 136,450 thousand year-over-year [62]. - Outpatient medical service revenue decreased by 0.04% to RMB 193.4 million for the six months ended June 30, 2023, compared to RMB 193.5 million for the same period in 2022, primarily due to a reduction in average outpatient fees [105]. - Inpatient medical service revenue decreased by 2.3% to RMB 177.0 million for the six months ended June 30, 2023, compared to RMB 181.2 million for the same period in 2022, primarily due to a reduction in average inpatient fees [130].

河南宏力醫院代表本集團提供醫院服務，報告期間：(i)住院人次總數共50,920（截至二零二一年十二月三十一日止 年度：43,973），同比增加15.8%；(ii)住院次均費用為人民幣6,385.2元（截至二零二一年十二月三十一日止年度為 人民幣6,645.4元），同比減少3.9%；(iii)門診次均費用為人民幣312.7元（截至二零二一年十二月三十一日止年度為 人民幣265.7元），同比增長17.7%；(iv)門診人次共為1,286,815（截至二零二一年十二月三十一日止年度為 1,183,408），同比增長8.7%。 管理層討論與分析 收入 我們的行政開支由截至二零二一年十二月三十一日止年度的人民幣68.5百萬元增加7.0%至截至二零二二年十二月 三十一日止年度的人民幣73.3百萬元，主要由於員工福利開支增多及一期大樓產生稅項。 借款 我們的投資活動所用現金淨額由截至二零二一年十二月三十一日止年度的人民幣50.5百萬元減少至截至二零二二 年十二月三十一日止年度的人民幣19.2百萬元，主要是由於購買物業、廠房及設備付款減少人民幣32.1百萬元。 重大投資、重大收購及出售 董事會報告 概無股東已放棄或同意放棄任 ...

Revenue and Financial Performance - The total revenue for the year ended December 31, 2022, increased by 19.9% to RMB 727.8 million from RMB 606.8 million for the year ended December 31, 2021, primarily due to an increase in outpatient and inpatient patient visits and average patient fees[13]. - Revenue for the year ended December 31, 2022, was RMB 727,789,000, representing a 19.9% increase from RMB 606,837,000 in 2021[130]. - Gross profit for the same period was RMB 138,395,000, a slight increase of 2.3% compared to RMB 135,306,000 in 2021[130]. - Profit attributable to equity holders of the company was RMB 48,947,000, reflecting a significant growth of 33.7% from RMB 36,615,000 in the previous year[130]. - Basic and diluted earnings per share increased to RMB 0.08, up 33.3% from RMB 0.06 in 2021[130]. - Operating profit for the year was RMB 61,561,000, down from RMB 66,561,000 in 2021[131]. - The net profit before tax for the year was RMB 63,021,000, an increase of 24.7% from RMB 50,542,000 in 2021[156]. - Revenue from medical services was RMB 463,225,000, up 17.9% from RMB 392,356,000 in the previous year[143]. - Revenue from pharmaceutical sales reached RMB 264,564,000, representing a 23.4% increase from RMB 214,481,000 in 2021[143]. Patient Visits and Service Metrics - Outpatient visits increased to 1,286,815 in 2022 from 1,183,408 in 2021, with the average outpatient fee rising to RMB 312.7 from RMB 265.7[13]. - Inpatient visits rose to 50,920 in 2022 compared to 43,973 in 2021, while the average inpatient fee decreased slightly to RMB 6,385.2 from RMB 6,645.4[13]. - The total number of inpatient visits increased by 15.8% to 50,920 for the year ended December 31, 2022, compared to 43,973 for the year ended December 31, 2021[181]. - The average cost per inpatient visit decreased by 3.9% to RMB 6,385.2 for the year ended December 31, 2022, from RMB 6,645.4 for the year ended December 31, 2021[181]. - The average cost per outpatient visit increased by 17.7% to RMB 312.7 for the year ended December 31, 2022, compared to RMB 265.7 for the year ended December 31, 2021[181]. Expenses and Liabilities - Administrative expenses increased by 7.0% to RMB 73.3 million in 2022 from RMB 68.5 million in 2021, mainly due to higher employee welfare expenses and taxes from a new building[22]. - The cost of consumables for the year ended December 31, 2022, increased by RMB 17.3 million compared to the previous year[31]. - Employee benefits expenses rose by RMB 17.9 million for the year ended December 31, 2022, compared to the previous year[31]. - Depreciation and amortization expenses increased by RMB 21.0 million for the year ended December 31, 2022, compared to the previous year[31]. - The company has rental liabilities of approximately RMB 2.1 million as of December 31, 2022[37]. - Total liabilities decreased to RMB 380,367,000 from RMB 395,079,000 in the previous year[121]. - Non-current liabilities increased to RMB 2,911,000 from RMB 2,534,000 in 2021[121]. - Current liabilities totaled RMB 377,456,000, a decrease from RMB 392,545,000 in the previous year[121]. Cash Flow and Financing Activities - Operating cash flow increased from RMB 914 million for the year ended December 31, 2021, to RMB 1,185 million for the year ended December 31, 2022, primarily due to increased operating profit[53]. - Net cash used in investing activities decreased from RMB 505 million for the year ended December 31, 2021, to RMB 192 million for the year ended December 31, 2022, mainly due to a reduction in payments for the purchase of properties, plants, and equipment by RMB 321 million[54]. - Net cash used in financing activities increased from RMB 769 million for the year ended December 31, 2021, to RMB 1,178 million for the year ended December 31, 2022, primarily due to repayment of borrowings and related interest of RMB 565 million[54]. - The company's debt-to-asset ratio as of December 31, 2022, was 40.7%, a slight decrease from 41.1% as of December 31, 2021[56]. Strategic Initiatives and Future Plans - The company plans to continue expanding its business scale through external growth and management strategies[18]. - The company aims to enhance talent cultivation and strengthen partnerships with educational institutions to build a professional medical team[17]. - The company plans to expand its services through an online hospital platform, enabling online consultations and electronic prescriptions[51]. - The company is developing new medical technologies, including ultrasound-guided procedures, to enhance its competitive edge[52]. - The company aims to establish a multidisciplinary treatment model to address various patient needs, including lung nodules and pain management[51]. - The company plans to enhance core competitiveness and expand service capabilities in response to increasing healthcare demands[185]. - The government has introduced policies to support the development of social medical institutions, indicating a favorable environment for future growth[186]. Research and Community Engagement - The company published 55 medical research papers in 2022, including 5 at the national level and 32 at the provincial level[35]. - The company is committed to social welfare activities to enhance community healthcare[29]. - The company is actively involved in social welfare activities, completing over 2,000 free screenings for lung nodules during the reporting period[49]. - The company believes that social healthcare will continue to grow with the support of national policies, aiming to meet the increasing healthcare demands of the public[6]. Corporate Governance and Compliance - As of December 31, 2022, the company has complied with all applicable corporate governance code provisions except for the specified provisions[87]. - The audit committee, consisting of three independent non-executive directors, has reviewed the consolidated financial statements for the year ended December 31, 2022[91]. - The company's auditor confirmed that the financial figures in the announcement are consistent with the audited financial statements[92]. - The annual general meeting is scheduled for June 16, 2023, where shareholders will be invited to participate[96]. - The company expresses gratitude to its management team and employees for their contributions to its success[98].