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].

Financial Performance - The group's revenue for the year ended December 31, 2022, was RMB 727.8 million, an increase of RMB 121.0 million or 19.9% compared to RMB 606.8 million for the year ended December 31, 2021, primarily driven by increased revenue from medical services and pharmaceutical sales[34]. - The company's profit increased by 33.3% from RMB 37.0 million in 2021 to RMB 49.3 million in 2022, with net profit margins improving from 6.1% to 6.8%[78]. - The group's consolidated revenue for the year ended December 31, 2022, was RMB 727.8 million, an increase of 19.9% compared to the previous year[123]. - Total revenue from treatment and comprehensive medical services was RMB 463.2 million, accounting for 63.6% of total revenue[138]. - Total revenue from drug sales was RMB 264.6 million, representing 36.4% of total revenue, up 23.4% from RMB 214.5 million in 2021[153]. - The company's gross profit increased by 2.3% from RMB 135.3 million for the year ended December 31, 2021, to RMB 138.4 million for the year ended December 31, 2022, while the gross profit margin decreased from 22.3% to 19.0%[164]. Patient Visits and Services - Total inpatient visits reached 50,920, an increase of 15.8% compared to 43,973 in the previous year[1]. - Outpatient visits totaled 1,286,815, reflecting an 8.7% increase from 1,183,408 in the previous year[1]. - The number of outpatient visits increased to 1,286,815 in 2022 from 1,183,408 in 2021, while the average outpatient fee rose from RMB 265.7 to RMB 312.7[73]. - Inpatient visits grew by 15.8% to 50,920 in 2022 compared to 43,973 in 2021[130]. - Total inpatient visits reached 50,920, representing a year-on-year growth of 15.8%[123]. - Outpatient visits increased by 8.7% to 1,286,815 in 2022 from 1,183,408 in 2021[130]. Costs and Expenses - Average inpatient cost decreased by 3.9% to RMB 6,385.2 from RMB 6,645.4 in the previous year[1]. - Average outpatient cost increased by 17.7% to RMB 312.7 from RMB 265.7 in the previous year[1]. - Employee costs for the fiscal year 2022 amounted to approximately RMB 193 million, an increase from RMB 173 million in the previous fiscal year, with a total of 1,847 full-time employees as of December 31, 2022[61]. - The group's sales costs rose by 25.0% to RMB 589.4 million, up from RMB 471.5 million in the previous year, primarily due to increased drug costs and employee benefits[112]. - The average length of hospital stay decreased by 9.4% to 9.6 days from 10.6 days year-on-year[130]. Cash Flow and Financial Position - The group reported a net cash generated from operating activities of RMB 118.5 million for the year ended December 31, 2022, compared to RMB 91.4 million in the previous year[57]. - The group's cash and cash equivalents totaled approximately RMB 255.2 million as of December 31, 2022, a slight decrease from RMB 263.6 million as of December 31, 2021[51]. - The company's net current liabilities decreased from RMB 65.4 million as of December 31, 2021, to RMB 44.2 million as of December 31, 2022, primarily due to cash inflows from operating activities[168]. - The company's total liabilities to total assets ratio was 40.7% as of December 31, 2022, compared to 41.1% as of December 31, 2021[176]. - Borrowings decreased from RMB 187.0 million as of December 31, 2021, to RMB 141.0 million as of December 31, 2022, a reduction of RMB 46.0 million[108]. Strategic Initiatives and Developments - The company has developed over ten management systems recognized by the Henan Provincial Department of Science and Technology, enhancing operational efficiency[30]. - The introduction of multidisciplinary treatment models (MDT) aims to improve patient care and address healthcare access issues[22]. - The company plans to expand its business through the acquisition of hospitals, with an allocation of HKD 69.2 million for this purpose, expected to be utilized by the end of 2023[63]. - The company aims to enhance its medical supply chain business and employee training, with a budget of RMB 16.7 million and RMB 13.3 million respectively, both expected to be utilized by the end of 2023[63]. - The company plans to strengthen clinical academic research and introduce advanced medical technologies to enhance service quality[136]. Social Responsibility and Community Engagement - The company actively participated in COVID-19 prevention efforts, including socialized nucleic acid testing and vaccination[23]. - The group emphasized the importance of social responsibility and community engagement through various health initiatives and free screenings[125]. - The group has engaged in various social welfare activities, including free lung nodule screenings for over 2,000 individuals and nearly 100 free medical consultation events during the reporting period[41].

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].

Financial Performance - Honliv Healthcare Management Group reported a revenue of HKD 150 million for the first half of 2022, representing a 20% increase compared to the same period in 2021[14]. - The company achieved a net profit of HKD 30 million, which is a 15% increase year-over-year[14]. - The group's total comprehensive income for the six months ended June 30, 2022, was RMB 374.7 million, an increase of RMB 88.3 million or 30.8% compared to RMB 286.4 million for the same period in 2021[21]. - Total revenue increased by 30.8% from RMB 286.4 million in the six months ended June 30, 2021, to RMB 374.7 million in the six months ended June 30, 2022[35]. - Net profit rose by 62.0% from RMB 20.0 million to RMB 32.5 million, with net profit margin improving from 7.0% to 8.7%[48]. - The company reported revenue of RMB 374,742 thousand for the six months ended June 30, 2022, representing a 30.8% increase from RMB 286,404 thousand for the same period in 2021[112]. - Operating profit increased to RMB 41,848 thousand, compared to RMB 35,509 thousand in the previous year, reflecting a growth of 18.5%[112]. - The net profit attributable to the company's owners for the six months ended June 30, 2022, was RMB 32,173 thousand, compared to RMB 19,823 thousand in the previous year, reflecting a growth of 62.1%[159]. Patient Services and Growth - User data indicates that the number of patients served increased by 25% to 50,000 in the first half of 2022[14]. - The company plans to expand its services into three new provinces in China by the end of 2023, aiming for a 30% growth in patient numbers[14]. - The total number of inpatient visits increased by 19.4% to 24,863, compared to 20,822 for the same period in 2021[22]. - Outpatient visits totaled 643,476, reflecting a growth of 9.5% from 587,413 in the previous year[23]. - Inpatient medical service revenue rose by 32.8% from RMB 136.4 million to RMB 181.2 million, driven by an increase in patient visits and average treatment costs[38]. - Outpatient medical service revenue increased by 29.0% from RMB 150.0 million to RMB 193.5 million, attributed to higher patient visits and average treatment costs[38]. Research and Development - Honliv is investing HKD 10 million in R&D for new healthcare technologies, focusing on telemedicine solutions[14]. - The group published 16 medical research papers, including 2 at the national level and 9 at the provincial level, during the reporting period[29]. Strategic Initiatives - A strategic partnership with a local hospital network was established to enhance service delivery and patient care[14]. - The company is exploring potential acquisitions of smaller healthcare facilities to expand its market presence[14]. - The group aims to enhance core competitiveness and brand influence while improving patient satisfaction throughout the medical service process[19]. - The group plans to expand its business scale through new construction and management output, aiming for group development[18]. Financial Health and Liquidity - The company reported a cash flow from operations of HKD 40 million, indicating strong liquidity and financial health[14]. - Current liabilities decreased by 81.1% from RMB 65.4 million to RMB 12.3 million, primarily due to cash inflows from operating activities[51]. - The company's debt decreased from RMB 187.0 million as of December 31, 2021, to RMB 160.0 million as of June 30, 2022, a reduction of RMB 27.0 million[55]. - The asset-liability ratio as of June 30, 2022, was 37.9%, down from 41.1% as of December 31, 2021[68]. - Cash generated from operating activities for the six months ended June 30, 2022, was RMB 51,454,000, an increase of 31.0% compared to RMB 39,262,000 in the same period last year[126]. - The company has taken measures to improve its financial position and alleviate liquidity pressure, including negotiations with banks for refinancing[136]. Cost Management - Honliv's management emphasized a commitment to improving operational efficiency, targeting a 10% reduction in costs by the end of 2022[14]. - Total sales costs increased by 33.1% from RMB 218.7 million to RMB 291.2 million, primarily due to higher drug and medical supplies costs[42]. - Administrative expenses increased by 7.9% from RMB 32.6 million to RMB 35.2 million, mainly due to higher employee benefits[45]. - Financial costs decreased by 99.8% from RMB 8.3 million to RMB 0.02 million, attributed to loan repayments and reduced interest expenses[46]. Shareholder Information - Major shareholders include Cao Junming with 74.00% and Rubrical Investment with 22.20% of shares[78]. - The company raised approximately HKD 264.8 million from the global offering by issuing 150 million shares at HKD 2.10 each[85]. - As of June 30, 2022, the company has utilized HKD 151.3 million of the raised funds, leaving HKD 113.5 million unutilized[86]. - 29.5% of the raised funds are allocated for the expansion of the company's first building, while 26.1% is for hospital acquisitions[86]. Compliance and Governance - The company has complied with all applicable corporate governance code provisions during the reporting period[95]. - The company has adopted a standard code for securities transactions by directors, with all directors confirming compliance during the reporting period[97].

Financial Performance - The consolidated revenue for the year ended December 31, 2021, was RMB 606.8 million, representing a year-on-year increase of 15.8%[11] - The company's revenue for the year ended December 31, 2021, was RMB 606.8 million, an increase of RMB 82.8 million or 15.8% compared to RMB 524.0 million for the year ended December 31, 2020[24] - In 2021, the company's total revenue increased by 15.8% to RMB 606.8 million from RMB 524.0 million in 2020, primarily due to an increase in patient visits and improved technology[43] - The revenue from pharmaceutical sales was RMB 214.5 million, a year-on-year increase of 20.6% from RMB 177.8 million in 2020, driven by increased outpatient visits and demand for medications[36] - The revenue from outpatient medical services rose by 28.9% to RMB 314.4 million in 2021, compared to RMB 243.9 million in 2020, driven by heightened public health awareness due to the COVID-19 pandemic[44] - The revenue from inpatient medical services increased by 5.0% to RMB 292.4 million in 2021, up from RMB 278.6 million in 2020, attributed to an increase in severe patient admissions[44] - The company's gross profit decreased by 1.7% to RMB 135.3 million in 2021, with a gross margin of 22.3%, down from 26.3% in 2020, mainly due to rising sales costs[48] - Sales costs rose by 22.0% to RMB 471.5 million in 2021, up from RMB 386.5 million in 2020, driven by increased costs of drugs, consumables, and labor[47] - The net profit for the year increased by 66.8% to RMB 37.0 million in 2021, compared to RMB 22.2 million in 2020, with a net profit margin of 6.1%[53] Operational Metrics - The average hospitalization cost was RMB 6,645.4, up 21.7% year-on-year, while the average outpatient cost was RMB 265.7, an increase of 13.5%[11] - Outpatient visits reached 1,183,408, marking a year-on-year growth of 13.6%[11] - Outpatient visits increased by 13.6% to 1,183,408 in 2021 from 1,041,526 in 2020, while inpatient visits decreased by 13.9% to 43,973[25] - The company conducted a total of 579,000 nucleic acid tests in 2021, with 66.2% being hospital tests and 33.8% being community tests[25] - The company administered a total of 136,800 doses of COVID-19 vaccines throughout 2021[26] Strategic Initiatives - The company aims to enhance market share and profitability through quality improvement, cost reduction, and expansion of Internet + medical services[15] - The company plans to leverage its operational management experience to build a distinctive management system and consulting platform[11] - The company plans to continue optimizing its management system and expanding its service offerings in response to the evolving healthcare landscape[22] - The company aims to enhance patient experience and satisfaction while expanding its operational scale through the completion of its first-phase building[32] - The company is actively seeking opportunities to expand its hospital management services following the termination of its partnership with Jutan Hospital[33] - The company aims to further implement and expand the functions of internet medical services to provide high-quality medical services to more patients[40] - The company is exploring potential acquisitions to strengthen its market position and diversify service offerings[190] Capital Management - As of December 31, 2021, the total cash and cash equivalents amounted to RMB 263.6 million, a decrease from RMB 302.5 million as of December 31, 2020[56] - The net current liabilities decreased from RMB 88.2 million as of December 31, 2020, to RMB 65.4 million as of December 31, 2021, primarily due to cash inflows from operating activities[57] - Inventory increased by 31.1% from RMB 20.7 million as of December 31, 2020, to RMB 27.1 million as of December 31, 2021, mainly due to changes in inventory levels for the Spring Festival[58] - Trade receivables rose by 81.0% from RMB 19.1 million as of December 31, 2020, to RMB 34.5 million as of December 31, 2021, primarily due to increased revenue for the year[59] - Borrowings decreased from RMB 246.8 million as of December 31, 2020, to RMB 187.0 million as of December 31, 2021, a reduction of RMB 59.8 million due to repayment of part of the borrowings[61] - Trade payables increased from RMB 95.5 million as of December 31, 2020, to RMB 106.1 million as of December 31, 2021, an increase of RMB 10.6 million due to higher procurement during the reporting period[62] - Net cash generated from operating activities increased from RMB 74.6 million for the year ended December 31, 2020, to RMB 91.4 million for the year ended December 31, 2021, mainly due to increased operating profit[69] - Net cash used in investing activities decreased from RMB 80.1 million for the year ended December 31, 2020, to RMB 50.5 million for the year ended December 31, 2021, primarily due to reduced payments for property, plant, and equipment[70] - The debt-to-asset ratio as of December 31, 2021, was 41.1%, down from 45.5% as of December 31, 2020[76] Shareholder Information - The board does not recommend the distribution of a final dividend for the year ended December 31, 2021[104] - No shareholders have waived or agreed to waive any dividend arrangements[105] - The company anticipates that cash distributions will not exceed 30% of the distributable profits in the consolidated financial statements for each year[106] - The company’s operations in China may limit the ability to distribute dividends due to local laws and regulations[106] - Revenue from the top five customers accounted for less than 1.0% of total revenue for the year ended December 31, 2021[119] - Procurement from the top five suppliers accounted for approximately 51.0% of total purchases for the year ended December 31, 2021, with the largest supplier accounting for about 28.1%[119] Corporate Governance - The company has adopted a share option scheme to reward directors and eligible employees[130] - There were no payments made to any directors or the five highest-paid individuals as incentives for joining or leaving the company during the year ended December 31, 2021[131] - The company’s only obligation regarding retirement benefits is to make specified contributions to the government-operated retirement benefit plan in China[133] - All independent non-executive directors have confirmed their independence according to the listing rules[134] - The board of directors comprises three executive directors, one non-executive director, and three independent non-executive directors[183] - The company has established a remuneration committee responsible for evaluating the performance of directors and senior management[161] - The company has adopted the standard code for securities transactions by directors as per the listing rules[166] - The audit committee consists of three independent non-executive directors as of December 31, 2021[160] Future Outlook - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new service offerings and market expansion[190] - The company is investing in new technologies, including telemedicine solutions, aiming to enhance patient care and operational efficiency[190] - Market expansion plans include opening three new hospitals in the next two years, targeting underserved regions[190] Employee and Social Responsibility - The company is committed to achieving high levels of ESG performance and enhancing corporate sustainability while fulfilling social responsibilities[93] - The company emphasizes the importance of employee safety and development, providing equal opportunities in employment, training, and career planning[99] - The total number of full-time employees increased to 1,719 as of December 31, 2021, from 1,586 employees as of December 31, 2020, with employee costs amounting to approximately RMB 173 million in 2021[82] - The company is committed to continuous professional development for its management team, with ongoing training programs in healthcare management[190]

Financial Performance - Honliv Healthcare Management Group reported a revenue of HKD 150 million for the first half of 2021, representing a 20% increase compared to the same period in 2020[11]. - The company achieved a net profit of HKD 30 million, which is a 15% increase year-over-year[11]. - The group's total comprehensive income for the six months ended June 30, 2021, was RMB 286.4 million, an increase of RMB 41.7 million or 17.1% compared to RMB 244.7 million for the same period in 2020[18]. - Revenue for the six months ended June 30, 2021, was RMB 286,404,000, an increase of 17% compared to RMB 244,653,000 for the same period in 2020[110]. - Gross profit for the same period was RMB 67,665,000, up from RMB 61,764,000, reflecting a gross margin improvement[110]. - Operating profit increased to RMB 35,509,000, compared to RMB 25,442,000 in the previous year, representing a growth of 39%[110]. - Net profit for the period was RMB 20,036,000, a 49% increase from RMB 13,380,000 in the prior year[110]. - The profit attributable to the company's owners for the six months ended June 30, 2021, was RMB 19,823,000, compared to RMB 13,243,000 for the same period in 2020, representing a year-over-year increase of approximately 49%[154]. Operational Metrics - User data indicates that patient visits increased by 25% in the first half of 2021, reaching a total of 200,000 visits[11]. - The total number of inpatient visits was 20,822, a decrease of 11.5% from 23,515 in the same period of 2020[19]. - The total number of outpatient visits was 587,413, an increase of 20.9% from 485,789 in the same period of 2020[20]. - The average length of stay for inpatients increased to 10.5 days from 9.2 days in the same period of 2020, representing a 14.1% increase[20]. - Revenue from treatment and comprehensive medical services was RMB 187.2 million, accounting for 65.4% of total revenue, while pharmaceutical sales were RMB 99.2 million, accounting for 34.6%[36]. - Outpatient medical service revenue rose by 34.6% to RMB 150.0 million, driven by an increase in outpatient visits and average patient fees[39]. - Inpatient medical service revenue increased by 3.2% to RMB 136.4 million, attributed to a rise in average patient fees despite a decrease in inpatient visits[39]. Strategic Initiatives - The company plans to expand its services into three new regions in China by the end of 2022, aiming for a 30% growth in market share[11]. - Honliv is investing HKD 50 million in new technology for telemedicine services, expected to launch in Q3 2021[11]. - The company is exploring potential acquisitions of smaller healthcare facilities to enhance its service offerings and market presence[11]. - A new partnership with a leading pharmaceutical company is expected to enhance the product portfolio and increase revenue by 10% in 2022[11]. - The group aims to improve service quality and expand the treatment capacity for critically ill patients in response to healthcare policy reforms[25]. - The group continues to seek opportunities to expand its hospital management services following the termination of the management agreement with Jutan Hospital[27]. Cost Management - The company has implemented cost-control measures that are projected to reduce operational expenses by 5% in the next fiscal year[11]. - Sales costs rose by 19.6% to RMB 218.7 million, primarily due to increases in drug costs, employee benefits, and medical consumables[40]. - Gross profit increased by 9.6% to RMB 67.7 million, but gross margin decreased from 25.2% to 23.6% due to rising costs outpacing revenue growth[41]. - Administrative expenses decreased by 10.7% to RMB 32.6 million, mainly due to the reduction of listing-related expenses[43]. - Net financial costs decreased by 21.9% to RMB 8.3 million, attributed to reduced interest expenses from loan repayments[46]. Financial Position - Current liabilities decreased by 21.2% from RMB 88.2 million as of December 31, 2020, to RMB 69.5 million as of June 30, 2021, primarily due to cash inflows from operating activities[49]. - Inventory decreased by 42.5% from RMB 20.7 million as of December 31, 2020, to RMB 11.9 million as of June 30, 2021, mainly due to the depletion of inventory reserved for the Spring Festival[50]. - Trade receivables increased by 36.1% from RMB 19.1 million as of December 31, 2020, to RMB 25.9 million as of June 30, 2021, attributed to increased medical insurance payments and slower settlement[51]. - Total liabilities decreased to RMB 406,627,000 as of June 30, 2021, down from RMB 442,847,000 at the end of 2020, a reduction of about 8.2%[116]. - The company's debt-to-asset ratio was 42.5% as of June 30, 2021, down from 45.5% as of December 31, 2020[67]. Shareholder Information - Sunny Rock holds 310,788,450 shares, representing 51.80% of the total shares, while Rubrical Investment holds 133,195,050 shares, representing 22.20%[77]. - The company has issued a total of 600,000,000 shares as of June 30, 2021[77]. - The company did not recommend any interim dividend for the six months ended June 30, 2021[101]. - Basic earnings per share remained stable at RMB 0.03 for both 2021 and 2020[154]. Cash Flow - Cash generated from operating activities was RMB 39,262,000 for the six months ended June 30, 2021, compared to RMB 33,072,000 in the previous year, reflecting an increase of approximately 18.8%[124]. - The company incurred a net cash outflow of RMB 13,995,000 in cash and cash equivalents during the six months ended June 30, 2021, compared to RMB 19,980,000 in the same period of 2020[124]. - The company's cash and cash equivalents at the end of the reporting period were RMB 287,304,000, an increase from RMB 84,622,000 at the end of 2020[123]. Regulatory and Compliance - The group was officially approved as an internet hospital in June 2021, enhancing its service capabilities[24]. - The establishment of a tumor radiotherapy center was initiated in June 2021, expanding treatment options[24]. - The company has no significant events after the reporting period as of June 30, 2021[91].

Financial Performance - For the year ended December 31, 2020, the total comprehensive income was RMB 524.0 million, a slight decrease of 1.3% compared to the same period in 2019[11]. - The group's total comprehensive income for the year ended December 31, 2020, was RMB 524.0 million, a decrease of RMB 7.1 million or 1.3% compared to RMB 531.1 million for the year ended December 31, 2019[25]. - Total revenue for the year ended December 31, 2020, was RMB 524.0 million, a decrease of 1.3% from RMB 531.1 million in 2019[42]. - Revenue from treatment and integrated medical services was RMB 344.6 million, accounting for 65.8% of total revenue, down from 66.8% in 2019[42]. - Revenue from pharmaceutical sales increased by 2.5% to RMB 177.8 million, representing 33.9% of total revenue[42]. - Gross profit decreased by 19.1% to RMB 137.6 million, with a gross margin of 26.3%, down from 32.0% in 2019[47]. - Net profit for the year fell by 55.5% to RMB 22.2 million, resulting in a net profit margin of 4.2%[54]. Operational Metrics - The total number of inpatient visits was 51,059, representing a year-on-year decrease of 9.9%[11]. - The number of outpatient visits was 1,041,526, which is a year-on-year increase of 1.5%[11]. - The average cost per inpatient was RMB 5,458.7, an increase of 4.2% year-on-year[11]. - The average cost per outpatient was RMB 234.1, reflecting a year-on-year increase of 3.4%[11]. - Total inpatient visits were 51,059, a decrease of 9.9% from 56,687 in 2019, primarily due to enhanced social control measures during the pandemic[26]. - Outpatient visits increased by 1.5% to 1,041,526 compared to 1,025,771 in 2019, indicating a rebound in medical demand post-pandemic[27]. Strategic Initiatives - The company is actively seeking suitable acquisition targets to achieve external expansion goals[12]. - The company aims to enhance service capabilities and expand medical service channels, including home medical services[11]. - The company plans to focus on internal potential and external market expansion to improve both scale and technical services[15]. - The group successfully upgraded to a tertiary hospital in January 2020, enhancing its service capabilities[27]. - The company plans to leverage the advantages of intelligent hospital construction to advance its comprehensive layout in the health sector[23]. - The ongoing reforms in medical insurance payment methods are expected to improve service quality and promote coordinated development in the health sector[25]. Financial Stability - Cash and cash equivalents as of December 31, 2020, totaled approximately RMB 302 million, up from RMB 105 million in 2019[55]. - The company's leverage ratio decreased to 25.4% from 37.5% in 2019, indicating improved financial stability[55]. - The company's debt-to-asset ratio as of December 31, 2020, was 45.5%, a significant decrease from 66.7% as of December 31, 2019[76]. - The company's net current liabilities decreased from RMB 279.2 million as of December 31, 2019, to RMB 88.2 million as of December 31, 2020, primarily due to funds raised from the listing on the main board of the Stock Exchange in July 2020, resulting in cash and cash equivalents increasing from RMB 104.6 million to RMB 302.5 million[56]. Employee and Management - The total number of full-time employees increased from 1,496 as of December 31, 2019, to 1,586 as of December 31, 2020, with employee costs amounting to approximately RMB 152 million in 2020, compared to RMB 145 million in 2019[84]. - The company has adopted a share option scheme to reward directors and eligible employees, with details provided in the report[130]. - The company’s employees are part of a state-managed retirement benefit plan in China, with contributions based on employee salaries[133]. Corporate Governance - The audit committee was established on July 13, 2020, to review and monitor financial reporting procedures and internal control systems[164]. - The remuneration committee was also established on July 13, 2020, to evaluate and determine the remuneration policies for directors and senior management[165]. - The company established a nomination committee on July 13, 2020, responsible for determining procedures and standards for candidates for the board and senior management[166]. - The independent auditor for the year ending December 31, 2021, was PwC, with total fees amounting to RMB 2.35 million[182]. Market and Customer Insights - The COVID-19 pandemic has accelerated the growth of internet hospitals, changing patient healthcare-seeking habits[19]. - Revenue from the top five customers accounted for less than 1.0% of total revenue for the year ended December 31, 2020, while procurement from the top five suppliers represented approximately 51.0% of total procurement[119]. - The largest supplier accounted for approximately 28.1% of total procurement for the year ended December 31, 2020, compared to 22.5% in 2019[119]. Future Outlook - The company plans to enhance medical safety, profitability, and market share through quality improvement and cost reduction measures in 2021[40]. - The company intends to invest 8.0% of the total funds, amounting to HKD 21.3 million, in purchasing medical equipment and improving its information technology systems, with all funds already utilized[89]. - The company has committed to high levels of ESG performance and has established processes for handling medical waste and other emissions, with no administrative penalties or related lawsuits reported during the year[96].