Financial Performance - Total revenue for the six months ended June 30, 2022, reached RMB 1,379.7 million, representing a year-on-year increase of 95.3%[9] - Revenue from hospital solutions was RMB 1,079.6 million, up 117.7% compared to RMB 496.0 million in the previous year[9] - Gross profit increased to RMB 386.0 million, a growth of 50.8% from RMB 256.0 million in the prior year[9] - The adjusted net loss (non-IFRS measure) narrowed to RMB 148.0 million, a decrease of 26.9% from RMB 202.5 million in the previous year[9] - Revenue for personal chronic disease management solutions and others increased by 79.3% to RMB 94.3 million in 2022 from RMB 52.6 million in 2021[26] - The company reported a net loss of RMB 1,234,679 thousand for the period, compared to a net loss of RMB 2,539,786 thousand in the prior year, showing a reduction in losses[78] - The total comprehensive loss for the period was RMB 1,710,794 thousand, compared to RMB 2,497,316 thousand in the same period of 2021, reflecting an overall improvement[89] Customer and Market Growth - The number of hospitals deploying the company's hospital SaaS reached 2,490 as of June 30, 2022, up from 1,808 in 2021, representing a growth of 37.5%[18] - The number of hospitals purchasing medical supplies directly or indirectly from the company increased to 2,766, a significant growth of 87.7% compared to the same period in 2021[17] - The overall customer retention rate was 79%, while the retention rate for hospitals using the SaaS was 92%[19] - The number of pharmacies deploying the pharmacy SaaS reached 185,731, up from 153,015 in 2021, marking a growth of 21.4%[24] - The number of registered users reached 26.5 million in 2022, up from 20.9 million in 2021, representing a growth of 26.8%[27] - The number of registered doctors increased to 94.9 thousand in 2022 from 70.5 thousand in 2021, reflecting a growth of 34.5%[27] Strategic Initiatives - The company aims to expand its market presence by adopting a "hospital-first" strategy to enhance chronic disease management services[12] - The personal chronic disease management solutions will connect doctors and patients through hospital and pharmacy solutions[15] - The company established a strategic partnership with Sanofi to develop innovative solutions in chronic disease management starting with diabetes[29] - The company plans to continue expanding its hospital and pharmacy network and invest in product and technology innovation to strengthen its market position[30] - The company aims to enhance its value proposition through investments in product capabilities and medical knowledge to deepen partnerships with hospitals[30] Financial Position and Liabilities - As of June 30, 2022, the company's cash and cash equivalents were RMB 522.3 million, down from RMB 1,090.6 million as of December 31, 2021[47] - The company's bank and other loans amounted to RMB 58.2 million as of June 30, 2022, compared to RMB 114.4 million as of December 31, 2021[47] - The debt-to-asset ratio increased to 33.0% as of June 30, 2022, from 30.1% as of December 31, 2021[51] - The total liabilities net amount reached RMB 8,782,404 thousand as of June 30, 2022, compared to RMB 7,155,131 thousand as of December 31, 2021, showing an increase of 22.7%[92] - The company's total equity attributable to equity shareholders was RMB (8,775,181) thousand as of June 30, 2022, compared to RMB (7,137,952) thousand as of December 31, 2021, reflecting a decline of 22.9%[92] Expenses and Cost Management - Sales and marketing expenses increased by 23.8% from RMB 344.2 million to RMB 426.2 million, while the ratio of sales and marketing expenses to revenue decreased from 48.7% to 30.9%[35] - Administrative expenses rose by 39.0% from RMB 113.8 million to RMB 158.2 million, but the ratio to revenue decreased from 16.1% to 11.5%[36] - Research and development expenses decreased from RMB 108.2 million to RMB 79.0 million, with the ratio to revenue dropping from 13.3% to 5.2%[37] - Employee costs totaled RMB 282,176 thousand, a decrease of 11% from RMB 318,628 thousand in the prior year[109] Shareholder Information - Mr. Kuang holds 128,447,385 shares, representing approximately 21.88% of the company's equity[65] - As of June 30, 2022, the total number of issued shares was 587,038,219[70] - The major shareholder, 恒泰信託（香港）有限公司, controls 164,351,215 shares, accounting for 28.00% of the total shares[69] - The company issued a total of 19,000,000 shares at HKD 30.50 each on July 6, 2022, with no significant changes in the capital structure[52] Acquisitions and Investments - The group completed three acquisitions during the six months ending June 30, 2022, including a 60% stake in Zhejiang Xie Ning Medical Technology Co., Ltd. for RMB 21 million, and 100% stakes in Hangzhou Zhiming Pharmacy Chain Co., Ltd. and Hangzhou Tongdaotang Pharmacy Co., Ltd. for RMB 26 million, expanding its pharmaceutical distribution business[148] - The group recognized goodwill of RMB 5 million from the acquisition of Zhejiang Xie Ning Medical Technology Co., Ltd. and RMB 20 million from the acquisitions of Hangzhou Zhiming Pharmacy Chain Co., Ltd. and Hangzhou Tongdaotang Pharmacy Co., Ltd.[148] Cash Flow and Financial Management - The net cash used in operating activities for the first half of 2022 was RMB 436,074 thousand, an increase from RMB 293,747 thousand in the same period of 2021[99] - Cash and cash equivalents decreased by RMB 601,077 thousand during the first half of 2022, compared to an increase of RMB 174,043 thousand in the same period of 2021[101] - The company incurred RMB 38,737 thousand in cash outflow for the acquisition of subsidiaries, compared to RMB 23,986 thousand in the previous year[99] Regulatory and Compliance - The company operates under the Hong Kong Securities and Futures Ordinance, Chapter 571[156] - The company has not yet been listed on the stock exchange as of June 30, 2022, affecting the applicability of certain regulations[68]