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宏力医疗管理(09906) - 2023 - 中期业绩
2023-08-25 13:57
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].
宏力医疗管理(09906) - 2022 - 年度财报
2023-04-21 13:08
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].
宏力医疗管理(09906) - 2022 - 年度业绩
2023-03-27 14:56
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].
宏力医疗管理(09906) - 2022 - 中期财报
2022-09-27 08:49
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].
宏力医疗管理(09906) - 2021 - 年度财报
2022-04-22 10:38
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]
宏力医疗管理(09906) - 2021 - 中期财报
2021-09-28 08:53
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].
宏力医疗管理(09906) - 2020 - 年度财报
2021-04-19 08:36
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].
宏力医疗管理(09906) - 2020 - 中期财报
2020-09-25 08:34
[Company Information](index=2&type=section&id=Company%20Information) [Company Basic Information](index=3&type=section&id=Company%20Basic%20Information) This section outlines Honley Medical Management Group Company Limited's fundamental details, including board members, key locations, auditors, and stock code - The Board of Directors includes Executive Directors (Mr. Qin Yan, Dr. Teng Qingxiao, Mr. Wang Zhongtao), Non-executive Director (Mr. Qin Hongchao), and Independent Non-executive Directors (Mr. Zhao Chun, Mr. Sun Jigang, Mr. Jiang Tianfan)[5](index=5&type=chunk) - The Audit Committee is chaired by **Mr. Sun Jigang**, the Remuneration Committee by **Mr. Jiang Tianfan**, and the Nomination Committee by **Mr. Zhao Chun**[5](index=5&type=chunk) - The auditor is **PricewaterhouseCoopers**[5](index=5&type=chunk) - The company's stock code is **9906**, and its listing date was **July 13, 2020**[8](index=8&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) [Market Overview and Outlook](index=5&type=section&id=Market%20Overview%20and%20Outlook) This section discusses the significant impact of 2020 healthcare reforms and the COVID-19 pandemic on China's medical services industry, and the Group's strategic responses - Key healthcare reform policies in China in 2020 include medical insurance payment reform, centralized drug procurement, smart hospital construction, and accelerated development of county-level medical alliances[10](index=10&type=chunk) - The COVID-19 pandemic severely tested China's healthcare system and will influence hospital survival and development for an extended period[11](index=11&type=chunk) - The Group plans to strengthen its medical management system, cultivate key and specialized departments, leverage big data, and comprehensively expand into the broader health sector under policy guidance[11](index=11&type=chunk) [Business Review](index=6&type=section&id=Business%20Review) In the first half of 2020, the Group's consolidated revenue decreased by 9.8% to RMB 244.7 million due to COVID-19, primarily impacting treatment, general hospital services, and pharmaceutical sales, despite achieving significant progress in hospital development and specialty construction - Consolidated revenue for the first half of 2020 decreased by **9.8%** to **RMB 244.7 million** compared to the same period in 2019, mainly due to reduced revenue from treatment and general hospital services and pharmaceutical sales, attributed to the COVID-19 pandemic[14](index=14&type=chunk) Hospital Service Key Operating Data (For the six months ended June 30) | Indicator | 2020 | 2019 | Change % | | :----------- | :--------- | :--------- | :----- | | Outpatient visits | 485,789 | 517,449 | (6.1) | | Average outpatient fee (RMB) | 229.4 | 223.0 | 2.9 | | Inpatient visits | 23,515 | 28,760 | (18.2) | | Average inpatient fee (RMB) | 5,621.8 | 5,367.0 | 4.7 | | Operating beds at period end | 1,500 | 1,500 | – | | Average length of stay (days) | 9.2 | 8.8 | 4.5 | | Surgeries | 4,940 | 6,055 | (18.4) | - Hospital development and specialty achievements include: promotion to a **Grade III hospital** in January 2020, successful re-evaluation as a Baby-Friendly Hospital; continued operating performance growth in Nephrology and Oncology during the pandemic; and designation as the **sole hospital in Changyuan City** capable of COVID-19 nucleic acid testing in June 2020[20](index=20&type=chunk) - Future revenue-driving strategies include: expanding the Phase I building for increased wards and new radiotherapy services; enhancing interventional cardiology treatment; diversifying obstetrics and gynecology services; and establishing an intravenous admixture center for improved efficiency and safety[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) - Pharmaceutical sales revenue decreased by **3.2%** year-on-year to **RMB 83.8 million**, primarily due to reduced selling prices for certain drugs in accordance with Henan Province standards[29](index=29&type=chunk) - Directors anticipate adverse impacts from the COVID-19 pandemic on revenue, financial position, and operating results, but inpatient and outpatient volumes are gradually recovering, and the designated hospital status has enhanced brand recognition and reputation[30](index=30&type=chunk) [Financial Review](index=9&type=section&id=Financial%20Review) In the first half of 2020, the Group's total revenue decreased by 9.8% year-on-year, mainly due to reduced revenue from treatment, general medical services, and pharmaceutical sales impacted by the pandemic, leading to a significant decline in gross profit and margin, and a 60.9% decrease in profit for the period [Revenue and Costs](index=9&type=section&id=Revenue%20and%20Costs) In the first half of 2020, total revenue decreased by 9.8% to RMB 244.7 million, primarily due to reduced revenue from treatment, general medical services, and pharmaceutical sales impacted by the pandemic, while sales costs slightly increased, leading to a significant decline in gross profit and margin Revenue Breakdown (For the six months ended June 30) | Revenue Source | 2020 (RMB thousand) | Percentage of Revenue (2020) | 2019 (RMB thousand) | Percentage of Revenue (2019) | | :----------------- | :---------------------- | :------------------------ | :---------------------- | :------------------------ | | Treatment and general medical services | 159,869 | 65.4% | 183,236 | 67.6% | | Pharmaceutical sales | 83,769 | 34.2% | 86,507 | 31.9% | | Hospital management services | 1,015 | 0.4% | 1,390 | 0.5% | | **Total** | **244,653** | **100.0%** | **271,133** | **100.0%** | Hospital Revenue Breakdown by Source (For the six months ended June 30) | Revenue Source | 2020 (RMB thousand) | Percentage of Revenue (2020) | 2019 (RMB thousand) | Percentage of Revenue (2019) | | :----------- | :---------------------- | :------------------------ | :---------------------- | :------------------------ | | Inpatient medical services | 132,197 | 54.0% | 154,355 | 56.9% | | Outpatient medical services | 111,441 | 45.6% | 115,388 | 42.6% | | **Total** | **243,638** | **99.6%** | **269,743** | **99.5%** | - Total revenue decreased by **9.8%** from **RMB 271.1 million** for the six months ended June 30, 2019, to **RMB 244.7 million** for the six months ended June 30, 2020, primarily due to reduced revenue from treatment and general hospital services and pharmaceutical sales[33](index=33&type=chunk) - Cost of sales increased by **1.0%** from **RMB 181.0 million** for the six months ended June 30, 2019, to **RMB 182.9 million** for the six months ended June 30, 2020, mainly due to higher pharmaceutical and staff costs, partially offset by reduced consumables costs[37](index=37&type=chunk) - Gross profit decreased by **31.5%** from **RMB 90.1 million** to **RMB 61.8 million**; gross profit margin decreased from **33.2%** to **25.2%**, mainly due to reduced revenue and relatively fixed cost of sales during the pandemic[38](index=38&type=chunk) [Expenses and Profit](index=10&type=section&id=Expenses%20and%20Profit) Administrative expenses significantly increased due to listing-related fees, finance costs decreased due to reduced principal of borrowings, and income tax expense substantially declined due to lower profit before tax, resulting in a 60.9% decrease in profit for the period and a net profit margin reduction from 12.6% to 5.5% - Administrative expenses increased by **9.6%** from **RMB 33.3 million** to **RMB 36.5 million**, primarily due to listing-related expenses rising from **RMB 3.1 million** to **RMB 12.7 million**[40](index=40&type=chunk) - Net finance costs decreased by **6.0%** from **RMB 11.3 million** to **RMB 10.6 million**, mainly due to reduced interest expenses from quarterly repayments of other borrowings[43](index=43&type=chunk) - Income tax expense decreased by **87.5%** from **RMB 11.5 million** to **RMB 1.4 million**, primarily due to a reduction in profit before tax[44](index=44&type=chunk) Profit for the Period and Net Profit Margin (For the six months ended June 30) | Indicator | First Half of 2020 | First Half of 2019 | Change % | | :--------- | :--------------- | :--------------- | :----- | | Profit for the period | RMB 13.4 million | RMB 34.2 million | (60.9) | | Net profit margin | 5.5% | 12.6% | (7.1)pp | [Balance Sheet Items Discussion](index=11&type=section&id=Balance%20Sheet%20Items%20Discussion) Net current liabilities decreased due to reduced short-term bank borrowings, inventory declined, trade receivables grew due to medical insurance settlement policies, and other receivables and prepayments increased due to capitalized listing fees; total borrowings decreased, trade payables declined due to reduced business activity, and accruals and other payables rose due to increased listing fees payable - Net current liabilities decreased from **RMB 279.2 million** as of December 31, 2019, to **RMB 243.7 million** as of June 30, 2020, primarily due to a reduction in short-term bank borrowings[46](index=46&type=chunk) - Inventories decreased by **40.3%** from **RMB 23.1 million** to **RMB 13.8 million**, mainly because a larger inventory was stocked at year-end in anticipation of the Chinese New Year[47](index=47&type=chunk) - Trade receivables balance increased by **95.5%** to **RMB 33.2 million**, primarily due to the settlement policy for trade receivables formulated in the first half of 2020 under the basic medical insurance scheme for urban and rural residents[48](index=48&type=chunk) - Other receivables and prepayments increased by **RMB 2.4 million** to **RMB 8.7 million**, mainly due to the increase in capitalized listing expenses as the listing process was nearing completion in the first half of 2020[49](index=49&type=chunk) - Total borrowings decreased by **RMB 19.4 million** to **RMB 252.3 million**, primarily due to repayments of **RMB 222.4 million** and new borrowings of **RMB 203.0 million**[50](index=50&type=chunk) - Trade payables decreased to **RMB 89.3 million**, mainly due to reduced purchasing activities resulting from decreased business operations and partial payment of trade payables during the period[51](index=51&type=chunk) - Accruals and other payables increased to **RMB 91.6 million**, primarily due to an increase in listing fees payable to **RMB 11.7 million**[54](index=54&type=chunk) [Liquidity and Capital Resources](index=12&type=section&id=Liquidity%20and%20Capital%20Resources) Net cash from operating activities significantly decreased due to lower operating profit and trade receivables settlement, net cash used in investing activities substantially declined due to reduced payments for property, plant, and equipment and related party loans, and financing activities shifted from net inflow to net outflow primarily due to loan repayments and dividend payments Consolidated Cash Flow Statement (For the six months ended June 30) | Indicator | 2020 (RMB thousand) | 2019 (RMB thousand) | | :------------------- | :---------------------- | :---------------------- | | Net cash from operating activities | 31,498 | 99,239 | | Net cash used in investing activities | (11,737) | (100,056) | | Net cash flow from financing activities | (39,741) | 34,345 | | Net (decrease)/increase in cash balance | (19,980) | 33,528 | - Net cash generated from operating activities was **RMB 31.5 million**, a decrease from **RMB 99.2 million** in the prior period, mainly due to lower operating profit and cash inflows from deferred settlement of trade receivables in the first half of 2019[58](index=58&type=chunk) - Net cash used in investing activities decreased from **RMB 100.1 million** to **RMB 11.7 million**, primarily due to a **RMB 38.7 million** reduction in payments for property, plant, and equipment and a **RMB 49.4 million** decrease in net cash outflow for loans to a related party[59](index=59&type=chunk) - Financing activities shifted from a net inflow of **RMB 34.3 million** in 2019 to a net outflow of **RMB 39.7 million** in 2020, mainly due to repayments of borrowings and interest totaling **RMB 30.7 million** and dividend payments to shareholders of **RMB 7.2 million**[60](index=60&type=chunk) [Financial Instruments and Risk Management](index=13&type=section&id=Financial%20Instruments%20and%20Risk%20Management) The Group's financial instruments include receivables, cash, borrowings, and payables, facing foreign exchange fluctuation risks without hedging, while its gearing ratio has improved - The Group's financial instruments include trade receivables, other receivables, cash and cash equivalents, bank borrowings, trade payables, and other payables[63](index=63&type=chunk) - The Group is exposed to foreign exchange risk, primarily involving fluctuations in HKD and USD against RMB, but did not use any derivative financial instruments to hedge exchange rate risk for the six months ended June 30, 2020[64](index=64&type=chunk) - As of June 30, 2020, the gearing ratio (total liabilities divided by total assets) was **64.2%**, a decrease from **66.7%** as of December 31, 2019[65](index=65&type=chunk) [Other Information](index=14&type=section&id=Other%20Information) [Directors' and Major Shareholders' Interests](index=14&type=section&id=Directors'%20and%20Major%20Shareholders'%20Interests) This report discloses the interests of directors and major shareholders in the company's shares and related shares, with Mr. Qin Yan and Mr. Qin Hongchao and their associates acting in concert, collectively holding a majority stake Directors' Interests in Shares, Underlying Shares, and Debentures of the Company (As of the date of this interim report) | Director Name | Capacity/Nature of Interest | Number of Shares/Underlying Shares Interested In (1) | Approximate Percentage of the Company's Issued Share Capital (1) | | :--------- | :------------------------- | :------------------------------ | :-------------------------------- | | Mr. Qin Yan | Interest in controlled corporation | 310,788,450 (L) | 51.80% | | | Jointly held interest with another person | 133,195,050 (L) | 22.20% | | Mr. Qin Hongchao | Interest in controlled corporation | 133,195,050 (L) | 22.20% | | | Jointly held interest with another person | 310,788,450 (L) | 51.80% | Major Shareholders' Interests in Securities (As of the date of this interim report) | Name/Company Name | Capacity/Nature of Interest | Number of Shares Interested In (1) | Approximate Percentage of the Company's Issued Share Capital (1) | | :------------------ | :------------------------ | :-------------------- | :-------------------------------- | | Sunny Rock | Beneficial owner | 310,788,450 (L) | 51.80% | | | Jointly held interest with another person | 133,195,050 (L) | 22.20% | | Rubrical Investment | Beneficial owner | 133,195,050 (L) | 22.20% | | | Jointly held interest with another person | 310,788,450 (L) | 51.80% | | Ms. Sun Mingyan | Spouse's interest | 443,983,500 (L) | 74.00% | | Ms. Cao Jinming | Spouse's interest | 443,983,500 (L) | 74.00% | - Mr. Qin Yan, Mr. Qin Hongchao, Sunny Rock, and Rubrical Investment are parties acting in concert under a concert party agreement and are deemed to be interested in the combined equity interests of all concert parties[71](index=71&type=chunk)[77](index=77&type=chunk) [Share Option Scheme and Global Offering](index=16&type=section&id=Share%20Option%20Scheme%20and%20Global%20Offering) The company conditionally approved and adopted a share option scheme on June 17, 2020, with no options granted as of the reporting date, and completed its global offering on July 13, 2020, issuing 150 million shares for net proceeds of approximately HKD 271.4 million to be used as per the prospectus - The company conditionally approved and adopted a share option scheme on **June 17, 2020**, but as of the date of this interim report, no share options have been granted, agreed to be granted, exercised, cancelled, or lapsed under the scheme[81](index=81&type=chunk)[82](index=82&type=chunk) - The global offering involved the issuance of **150,000,000 shares** at **HKD 2.10 per share**, with net proceeds of approximately **HKD 271.4 million** (equivalent to approximately **RMB 244 million**), intended for use as stated in the prospectus[83](index=83&type=chunk)[84](index=84&type=chunk) - The company's shares commenced trading on The Stock Exchange of Hong Kong Limited on **July 13, 2020**[84](index=84&type=chunk) [Corporate Governance and Compliance](index=16&type=section&id=Corporate%20Governance%20and%20Compliance) The company has complied with the Corporate Governance Code since its listing date, with the exception of Mr. Qin Yan holding both Chairman and CEO roles, which the Board believes provides strong and consistent leadership; the Audit Committee has reviewed the interim results and found them to be in compliance with accounting standards - As of the date of this report, at least **25%** of the company's total issued share capital is held by the public[85](index=85&type=chunk) - The company has complied with all applicable code provisions of the Corporate Governance Code set out in Appendix 14 to the Listing Rules, except for Mr. Qin Yan holding both the roles of Chairman and Chief Executive Officer[88](index=88&type=chunk)[89](index=89&type=chunk) - The Board believes that Mr. Qin Yan's dual role as Chairman and CEO provides strong and consistent leadership for the company, effectively planning and executing business decisions and strategies[89](index=89&type=chunk) - The Audit Committee has reviewed the Group's interim results for the six months ended June 30, 2020, and considers them to be prepared in accordance with applicable accounting standards[95](index=95&type=chunk) - PricewaterhouseCoopers, the company's independent auditor, has conducted an independent review of the Group's interim financial information for the reporting period[95](index=95&type=chunk) [Employees and Remuneration Policy](index=17&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2020, the Group had a total of 1,623 employees, with employee costs for the first half of the year amounting to approximately RMB 73.4 million; remuneration is determined based on qualifications, experience, and performance, with discretionary bonuses tied to performance, financial results, and market conditions - As of June 30, 2020, the total number of employees was **1,623**[97](index=97&type=chunk) - Employee costs (including directors' remuneration) for the six months ended June 30, 2020, were approximately **RMB 73.4 million**[97](index=97&type=chunk) - Remuneration is determined with reference to qualifications, experience, and job performance, while discretionary bonuses are generally paid based on individual performance, the Group's financial performance for the year, and general market conditions[97](index=97&type=chunk) [Interim Financial Information Review Report](index=18&type=section&id=Interim%20Financial%20Information%20Review%20Report) PricewaterhouseCoopers has reviewed Honley Medical Management Group Company Limited's interim financial information for the six months ended June 30, 2020, and found no matters suggesting it was not prepared in all material respects in accordance with Hong Kong Accounting Standard 34 - The auditor is **PricewaterhouseCoopers**[99](index=99&type=chunk) - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, which is less in scope than an audit, thus no audit opinion is expressed[100](index=100&type=chunk) - The review concluded that nothing has come to the auditor's attention that causes them to believe the Group's interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[101](index=101&type=chunk) [Interim Condensed Consolidated Statement of Comprehensive Income](index=19&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2020, the Group's revenue was RMB 244,653 thousand, with profit for the period at RMB 13,380 thousand, representing a significant decrease from the prior year, and basic and diluted earnings per share of RMB 0.03 Interim Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2020 (RMB thousand) | 2019 (RMB thousand) | | :--------------- | :---------------------- | :---------------------- | | Revenue | 244,653 | 271,133 | | Cost of sales | (182,889) | (181,001) | | Gross profit | 61,764 | 90,132 | | Operating profit | 25,442 | 56,981 | | Profit before income tax | 14,817 | 45,680 | | Income tax expense | (1,437) | (11,502) | | Profit for the period | 13,380 | 34,178 | | Total comprehensive income | 13,380 | 34,178 | | Basic and diluted earnings per share | 0.03 | 0.08 | [Interim Condensed Consolidated Statement of Financial Position](index=19&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2020, the Group's total assets were RMB 712,755 thousand, total liabilities RMB 457,747 thousand, and total equity RMB 255,008 thousand, with total current liabilities of RMB 399,334 thousand exceeding total current assets of RMB 155,597 thousand, resulting in net current liabilities Interim Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | 2020 (RMB thousand) | December 31, 2019 (RMB thousand) | | :--------------- | :---------------------- | :------------------------------------ | | Total non-current assets | 557,158 | 559,353 | | Total current assets | 155,597 | 165,971 | | **Total Assets** | **712,755** | **725,324** | | Total equity | 255,008 | 241,628 | | Total non-current liabilities | 58,413 | 38,569 | | Total current liabilities | 399,334 | 445,127 | | **Total Liabilities** | **457,747** | **483,696** | - As of June 30, 2020, the Group's current liabilities exceeded its current assets by **RMB 243,737 thousand**[161](index=161&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=21&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2020, equity attributable to owners of the company was RMB 250,816 thousand, non-controlling interests RMB 4,192 thousand, totaling RMB 255,008 thousand in equity, with profit for the period at RMB 13,380 thousand Interim Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | Share Capital (RMB thousand) | Reserves (RMB thousand) | Retained Earnings (RMB thousand) | Sub-total (RMB thousand) | Non-controlling Interests (RMB thousand) | Total Equity (RMB thousand) | | :--------------- | :---------------- | :---------------- | :-------------------- | :---------------- | :---------------------- | :-------------------- | | Balance at January 1, 2020 | 33 | 166,146 | 71,394 | 237,573 | 4,055 | 241,628 | | Profit for the period | - | - | 13,243 | 13,243 | 137 | 13,380 | | Appropriation to statutory surplus reserve | - | 1,348 | (1,348) | - | - | - | | Balance at June 30, 2020 | 33 | 167,494 | 83,289 | 250,816 | 4,192 | 255,008 | [Interim Condensed Consolidated Statement of Cash Flows](index=22&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2020, net cash generated from operating activities was RMB 31,498 thousand, net cash used in investing activities was RMB 11,737 thousand, and net cash used in financing activities was RMB 39,741 thousand, resulting in a net decrease in cash and cash equivalents of RMB 19,980 thousand Interim Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2020 (RMB thousand) | 2019 (RMB thousand) | | :------------------- | :---------------------- | :---------------------- | | Net cash from operating activities | 31,498 | 99,239 | | Net cash used in investing activities | (11,737) | (100,056) | | Net cash (used in)/from financing activities | (39,741) | 34,345 | | Net (decrease)/increase in cash and cash equivalents | (19,980) | 33,528 | | Cash and cash equivalents at beginning of period | 104,602 | 9,930 | | Cash and cash equivalents at end of period | 84,622 | 43,458 | [Notes to the Interim Condensed Consolidated Financial Information](index=23&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) [1. General Information](index=24&type=section&id=1.%20General%20Information) Honley Medical Management Group Company Limited, incorporated in the Cayman Islands on January 6, 2016, operates as an investment holding company primarily engaged in owning, operating, and managing hospitals in China, with its ordinary shares listed on the Main Board of the Hong Kong Stock Exchange on July 13, 2020 - The company was incorporated in the Cayman Islands as an exempted company on **January 6, 2016**[157](index=157&type=chunk) - The Group is primarily engaged in the ownership, operation, and management of hospitals in the People's Republic of China[157](index=157&type=chunk) - The company's ordinary shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on **July 13, 2020**[158](index=158&type=chunk) [2. Basis of Presentation and Accounting Policies](index=24&type=section&id=2.%20Basis%20of%20Presentation%20and%20Accounting%20Policies) This interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 and should be read in conjunction with the annual consolidated financial statements in the company's prospectus; the Group has net current liabilities, but management has taken steps, including listing proceeds and bank financing negotiations, to ensure its ability to continue as a going concern - This interim condensed consolidated financial information has been prepared in accordance with **Hong Kong Accounting Standard 34 "Interim Financial Reporting"**[160](index=160&type=chunk) - As of June 30, 2020, the Group's current liabilities exceeded its current assets by **RMB 243,737 thousand**[161](index=161&type=chunk) - Management has taken several measures to improve the financial position and alleviate liquidity pressure, including the completion of the listing, which generated net proceeds of approximately **RMB 244 million**, and negotiations with banks for renewal and additional credit facilities[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk) [3. Segment Reporting](index=25&type=section&id=3.%20Segment%20Reporting) For the six months ended June 30, 2020, the Group had only one operating segment, thus no segment information is presented, with the executive directors identified as the chief operating decision makers - The Group had only one operating segment for the six months ended June 30, 2020, and therefore no segment information is presented[170](index=170&type=chunk) - The chief operating decision makers have been identified as the executive directors[169](index=169&type=chunk) [4. Financial Risk Management](index=26&type=section&id=4.%20Financial%20Risk%20Management) The Group faces various financial risks, including market risks (foreign exchange and cash flow interest rate risks), credit risk, and liquidity risk, with no significant changes in risk management policies or undiscounted contractual cash flows of financial liabilities since year-end - The Group's activities expose it to various financial risks: market risk (including foreign exchange risk and cash flow interest rate risk), credit risk, and liquidity risk[173](index=173&type=chunk) - There have been no changes in risk management policies or any significant changes in the undiscounted contractual cash flows of financial liabilities since year-end[174](index=174&type=chunk)[175](index=175&type=chunk) [5. Revenue](index=26&type=section&id=5.%20Revenue) The Group's revenue primarily derives from providing treatment and general medical services, pharmaceutical sales, and hospital management services, with total revenue for the first half of 2020 amounting to RMB 244,653 thousand Revenue Breakdown (For the six months ended June 30) | Revenue Source | 2020 (RMB thousand) | 2019 (RMB thousand) | | :----------------- | :---------------------- | :---------------------- | | Treatment and general medical services | 159,869 | 183,236 | | Pharmaceutical sales | 83,769 | 86,507 | | Hospital management services | 1,015 | 1,390 | | **Total** | **244,653** | **271,133** | [6. Expenses by Nature](index=26&type=section&id=6.%20Expenses%20by%20Nature) In the first half of 2020, the Group's total expenses were RMB 219,410 thousand, mainly comprising employee benefit expenses, pharmaceutical costs, medical consumables costs, utility expenses, depreciation and amortization, and significantly increased listing-related expenses Expenses by Nature (For the six months ended June 30) | Expense Item | 2020 (RMB thousand) | 2019 (RMB thousand) | | :----------------- | :---------------------- | :---------------------- | | Employee benefit expenses | 73,384 | 72,443 | | Pharmaceutical costs | 67,957 | 64,931 | | Medical consumables costs | 29,686 | 33,423 | | Utilities, maintenance, and office expenses | 15,040 | 21,735 | | Depreciation and amortization | 13,903 | 12,012 | | Listing-related expenses | 12,676 | 3,071 | | Auditor's remuneration | 800 | – | | Other expenses | 5,964 | 6,723 | | **Total** | **219,410** | **214,338** | [7. Finance Costs](index=27&type=section&id=7.%20Finance%20Costs) Net finance costs for the first half of 2020 were RMB 10,625 thousand, a decrease from the prior year, primarily due to reduced interest expenses on bank and other borrowings, partially offset by interest income Net Finance Costs (For the six months ended June 30) | Item | 2020 (RMB thousand) | 2019 (RMB thousand) | | :--------------- | :---------------------- | :---------------------- | | Interest expense on bank borrowings | 6,719 | 5,764 | | Interest expense on other borrowings | 3,996 | 5,564 | | Interest expense on lease liabilities | 146 | 102 | | **Total finance costs** | **10,861** | **11,430** | | Interest income | (236) | (129) | | **Net finance costs** | **10,625** | **11,301** | [8. Income Tax Expense](index=27&type=section&id=8.%20Income%20Tax%20Expense) Income tax expense for the first half of 2020 was RMB 1,437 thousand, a significant reduction from the prior year, mainly due to lower profit before tax Income Tax Expense (For the six months ended June 30) | Item | 2020 (RMB thousand) | 2019 (RMB thousand) | | :--------------- | :---------------------- | :---------------------- | | Current income tax | 1,437 | 11,502 | [9. Earnings Per Share](index=28&type=section&id=9.%20Earnings%20Per%20Share) Basic earnings per share for the first half of 2020 decreased to RMB 0.03 from RMB 0.08 in the prior year, with diluted earnings per share being the same as basic earnings per share due to the absence of potential dilutive shares Basic Earnings Per Share (For the six months ended June 30) | Indicator | 2020 (Unaudited) | 2019 (Unaudited) | | :--------------- | :-------------------- | :-------------------- | | Profit attributable to owners of the company (RMB thousand) | 13,243 | 33,835 | | Weighted average number of ordinary shares deemed to be in issue (thousand shares) | 450,000 | 445,445 | | Basic earnings per share (RMB) | 0.03 | 0.08 | - As the Group had no potential dilutive shares for the six months ended June 30, 2020, diluted earnings per share were the same as basic earnings per share[186](index=186&type=chunk) [10. Dividends](index=28&type=section&id=10.%20Dividends) The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2020 - The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2020[96](index=96&type=chunk)[186](index=186&type=chunk) [11. Property, Plant and Equipment](index=28&type=section&id=11.%20Property,%20Plant%20and%20Equipment) As of June 30, 2020, the net book value of property, plant and equipment was RMB 409,706 thousand, a slight increase from the end of 2019, primarily due to new expenditures and an increase in construction in progress, partially offset by depreciation expenses Net Book Value of Property, Plant and Equipment (As of June 30) | Item | 2020 (RMB thousand) | December 31, 2019 (RMB thousand) | | :--------- | :---------------------- | :------------------------------------ | | Buildings and structures | 132,483 | 134,100 | | Machinery and equipment | 46,165 | 46,939 | | Office equipment and furniture and fixtures | 3,576 | 2,678 | | Motor vehicles | 547 | 641 | | Construction in progress | 226,935 | 222,196 | | **Total** | **409,706** | **406,554** | [12. Trade Receivables](index=29&type=section&id=12.%20Trade%20Receivables) As of June 30, 2020, net trade receivables were RMB 33,207 thousand, a significant increase of 95.5% from the end of 2019, mainly due to the impact of settlement policies under the basic medical insurance scheme for urban and rural residents - As of June 30, 2020, net trade receivables were **RMB 33,207 thousand**, representing a **95.5% increase** from **RMB 16,988 thousand** as of December 31, 2019[190](index=190&type=chunk) - The increase was primarily due to the settlement policy for trade receivables formulated in the first half of 2020 under the basic medical insurance scheme for urban and rural residents[48](index=48&type=chunk) [13. Other Receivables, Deposits and Prepayments](index=30&type=section&id=13.%20Other%20Receivables,%20Deposits%20and%20Prepayments) As of June 30, 2020, current other receivables and prepayments amounted to RMB 8,698 thousand, with a non-current portion of RMB 58,483 thousand, reflecting a significant increase in prepayments for listing expenses Current Other Receivables, Deposits and Prepayments (As of June 30) | Item | 2020 (RMB thousand) | December 31, 2019 (RMB thousand) | | :--------------- | :---------------------- | :------------------------------------ | | Other receivables | 665 | 1,095 | | Prepayments for utilities | 678 | 1,163 | | Prepayments for listing expenses | 7,355 | 3,999 | | **Sub-total** | **8,698** | **6,257** | Non-current Prepayments (As of June 30) | Item | 2020 (RMB thousand) | December 31, 2019 (RMB thousand) | | :--------------- | :---------------------- | :------------------------------------ | | Prepayments for machinery purchases | 10,222 | 11,560 | | Prepayments for construction | 48,261 | 50,000 | | **Sub-total** | **58,483** | **61,560** | [14. Balances with Related Parties](index=30&type=section&id=14.%20Balances%20with%20Related%20Parties) As of June 30, 2020, amounts due from related parties were RMB 220 thousand and amounts due to related parties were RMB 213 thousand, primarily trade-related, with non-trade related payables to related parties reduced to zero Amounts Due From Related Parties (Trade nature, as of June 30) | Related Party | 2020 (RMB thousand) | December 31, 2019 (RMB thousand) | | :------------------- | :---------------------- | :------------------------------------ | | Guxiang No. 9 | 22 | - | | Henan Honley Yishenghuo Co., Ltd. | 165 | - | | **Total** | **220** | **-** | Amounts Due To Related Parties (As of June 30) | Item | 2020 (RMB thousand) | December 31, 2019 (RMB thousand) | | :--------------- | :---------------------- | :------------------------------------ | | Trade nature | 213 | 621 | | Non-trade nature | - | 7,229 | | **Total** | **213** | **7,850** | [15. Borrowings](index=31&type=section&id=15.%20Borrowings) As of June 30, 2020, the Group's total borrowings amounted to RMB 252,321 thousand, comprising RMB 55,258 thousand in non-current borrowings and RMB 197,063 thousand in current borrowings, primarily including secured, guaranteed, and other bank borrowings, with certain assets pledged as collateral Total Borrowings (As of June 30) | Item | 2020 (RMB thousand) | December 31, 2019 (RMB thousand) | | :----------- | :---------------------- | :------------------------------------ | | Non-current borrowings | 55,258 | 33,869 | | Current borrowings | 197,063 | 237,827 | | **Total Borrowings** | **252,321** | **271,696** | Bank Borrowings Maturity Profile (As of June 30) | Maturity Profile | 2020 (RMB thousand) | December 31, 2019 (RMB thousand) | | :--------------- | :---------------------- | :------------------------------------ | | Not more than 1 year | 165,000 | 208,000 | | More than 1 year but not more than 2 years | 38,000 | – | | **Total** | **203,000** | **208,000** | Assets Pledged for Borrowings (As of June 30) | Pledged Assets | 2020 (RMB thousand) | December 31, 2019 (RMB thousand) | | :----------------------- | :---------------------- | :------------------------------------ | | The Group's property, plant and equipment and investment properties | 61,000 | 23,000 | | Henan Honley Group Co., Ltd.'s property, plant and equipment | - | 55,000 | | **Total** | **61,000** | **78,000** | Guaranteed Borrowings (As of June 30) | Guarantor | 2020 (RMB thousand) | December 31, 2019 (RMB thousand) | | :--------------------- | :---------------------- | :------------------------------------ | | The Group | 112,000 | 20,000 | | Henan Honley Group Co., Ltd. and Qin Zili | - | 81,000 | | Henan Pucheng Real Estate Co., Ltd. | - | 29,000 | | **Total** | **112,000** | **130,000** | - Other borrowings are secured by machinery and equipment with a carrying amount of **RMB 49,321 thousand**[209](index=209&type=chunk) Carrying Amount and Fair Value of Non-current Borrowings (As of June 30) | Item | Carrying Amount (RMB thousand) | Fair Value (RMB thousand) | | :------- | :------------------ | :------------------ | | Bank borrowings | 38,000 | 38,107 | | Other borrowings | 17,258 | 18,031 | | **Total** | **55,258** | **56,138** | [16. Trade Payables and Bills Payable](index=35&type=section&id=16.%20Trade%20Payables%20and%20Bills%20Payable) As of June 30, 2020, trade payables were RMB 89,297 thousand and bills payable were RMB 15,037 thousand, totaling RMB 104,334 thousand, a decrease from the end of 2019 Trade Payables and Bills Payable (As of June 30) | Item | 2020 (RMB thousand) | December 31, 2019 (RMB thousand) | | :----------- | :---------------------- | :------------------------------------ | | Trade payables | 89,297 | 100,006 | | Bills payable | 15,037 | 15,000 | | **Total** | **104,334** | **115,006** | [17. Accruals, Other Payables and Provisions](index=35&type=section&id=17.%20Accruals,%20Other%20Payables%20and%20Provisions) As of June 30, 2020, total accruals, other payables, and provisions amounted to RMB 91,648 thousand, an increase from the end of 2019, primarily due to a significant rise in listing fees payable Accruals, Other Payables and Provisions (As of June 30) | Item | 2020 (RMB thousand) | December 31, 2019 (RMB thousand) | | :--------------- | :---------------------- | :------------------------------------ | | Accrued employee benefits | 34,516 | 33,690 | | Patient deposits | 30,183 | 27,333 | | Tax payable and other taxes payable | 2,149 | 2,390 | | Tax payable for plant and equipment | 3,768 | 3,933 | | Interest payable | 1,473 | 1,907 | | Listing fees payable | 16,015 | 4,287 | | Others | 3,544 | 5,491 | | **Total** | **91,648** | **79,031** | [18. Commitments](index=36&type=section&id=18.%20Commitments) As of June 30, 2020, capital expenditures contracted but not provided for in the consolidated financial information primarily related to property, plant and equipment, amounting to RMB 77,482 thousand Capital Commitments (Contracted but not provided for, as of June 30) | Item | 2020 (RMB thousand) | December 31, 2019 (RMB thousand) | | :--------------- | :---------------------- | :------------------------------------ | | Property, plant and equipment | 77,482 | 81,733 | [19. Related Party Transactions](index=36&type=section&id=19.%20Related%20Party%20Transactions) The Group engaged in various related party transactions with its controlling shareholders, their close family members, and entities controlled by them, including health check services, property leases, purchase of leasing services and goods, and loans given to/received from related parties - Key related parties include Mr. Qin Yan, Mr. Qin Hongchao, Mr. Qin Zili, Ms. Wang Xianglian, Henan Honley Group Co., Ltd., Henan Hongda Construction Engineering Co., Ltd., Henan Honley Yishenghuo Co., Ltd., Henan Guxiang No. 9 Catering Co., Ltd., Henan Honley School Co., Ltd., and Henan Honley General Aviation Co., Ltd[227](index=227&type=chunk) Continuing Transactions with Related Parties (For the six months ended June 30) | Transaction Type | 2020 (RMB thousand) | 2019 (RMB thousand) | | :----------------- | :---------------------- | :---------------------- | | Provision of health check services to related parties | 1 | 103 | | Provision of property leases to related parties | 220 | 220 | | Purchase of leasing services from related parties | 290 | 290 | | Purchase of goods from related parties | 141 | 272 | Loans Given To/From Related Parties (Interest-free, for the six months ended June 30) | Transaction Type | 2020 (RMB thousand) | 2019 (RMB thousand) | | :----------------- | :---------------------- | :---------------------- | | Loans given to related parties | - | (151,093) | | Repayment of related party loans | - | 101,651 | | Borrowings from related parties | - | 91,103 | | Repayments to related parties | - | (129,704) | - As of June 30, 2020, borrowings secured by related party assets and guarantees were zero, compared to **RMB 136,000 thousand** as of December 31, 2019[235](index=235&type=chunk) Key Management Compensation (For the six months ended June 30) | Item | 2020 (RMB thousand) | 2019 (RMB thousand) | | :--------------- | :---------------------- | :---------------------- | | Salaries and wages | 1,630 | 1,686 | | Contributions to pension schemes | 18 | 44 | | Benefits and other expenses | 27 | 34 | | **Total** | **1,675** | **1,764** | [20. Contingent Liabilities](index=39&type=section&id=20.%20Contingent%20Liabilities) As of the reporting date, the Group had no significant outstanding litigation or material contingent liabilities - As of the reporting date, the Group had no significant outstanding litigation or material contingent liabilities[239](index=239&type=chunk) [21. Events After the Reporting Period](index=39&type=section&id=21.%20Events%20After%20the%20Reporting%20Period) The company completed its listing on July 13, 2020, issuing 150 million shares through a global offering, raising net proceeds of approximately HKD 271 million (approximately RMB 244 million) - The company completed its listing on **July 13, 2020**[240](index=240&type=chunk) - Through the global offering, **150,000,000 ordinary shares** were issued, generating net proceeds of approximately **HKD 271 million** (equivalent to **RMB 244 million**)[240](index=240&type=chunk)