恒康医疗集团股份有限公司 2021 年第一季度报告全文 恒康医疗集团股份有限公司 2021 年第一季度报告 2021 年 04 月 1 恒康医疗集团股份有限公司 2021 年第一季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人林杨林、主管会计工作负责人刘军及会计机构负责人(会计主管 人员)王宁声明：保证季度报告中财务报表的真实、准确、完整。 2 恒康医疗集团股份有限公司 2021 年第一季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 | --- | --- | --- | --- | |-----------------------------------------------------|------------------|------------------|---------------------------| | □ 是 √ 否 | 本报告期 | ...

Business Model and Strategy - The company reported a significant shift from a single pharmaceutical manufacturing business to a dual-driven model focusing on medical services and pharmaceutical manufacturing, aligning with the "big health" industry strategy[21] - The company’s main business operations have expanded to include a variety of healthcare services, reflecting a strategic pivot in its business model[21] - The company aims to strengthen partnerships with top health service institutions and explore new high-end medical services[38] - The company is committed to deepening the development of unique Tibetan medicine products, aligning with national strategies for traditional medicine protection and innovation[39] - The company plans to implement the "hospital+" model to optimize resource allocation and address supply-demand issues in healthcare[108] - The company aims to increase drug sales revenue and brand influence through enhanced technology research and development and brand promotion efforts[132] - The company is exploring potential mergers and acquisitions to enhance its service offerings and market share[174] Financial Performance - The company plans not to distribute cash dividends, issue bonus shares, or increase share capital from reserves for the fiscal year[6] - The company has received an unqualified audit report from Asia Pacific (Group) CPA, ensuring the accuracy and completeness of the financial statements[5] - The company has not disclosed specific future performance forecasts, emphasizing the uncertainty of achieving strategic goals due to market conditions[5] - The company’s financial report indicates a commitment to transparency and risk disclosure, with detailed descriptions of potential risks included in the report[5] - The company reported a basic and diluted earnings per share of -¥0.028, an improvement of 97.89% from -¥1.350 in 2019[23] - The company reported a net loss of 52.24 million CNY for 2020, with no cash dividends proposed for the year[116] - The company has not distributed cash dividends for the past three years due to continuous losses, with net losses of 2.52 billion CNY in 2019 and 1.42 billion CNY in 2018[119] - The company’s asset-liability ratio stands at 96.73%, indicating a high level of debt risk[112] Revenue and Expenses - The company's operating revenue for 2020 was ¥2,805,895,494.80, a decrease of 23.85% compared to ¥3,684,467,721.58 in 2019[23] - The company achieved total revenue of CNY 2.81 billion in 2020, a year-on-year decrease of 23.85%, with the medical services segment contributing CNY 2.37 billion, accounting for 84.62% of total revenue[56] - Service revenue accounted for 85.02% of total revenue, while industrial revenue made up 14.98%[64] - Medical service revenue was ¥2,374,437,844.47, down 2.32% from the previous year[64] - Gross profit margin for industrial revenue was 77.77%, while for service revenue it was 19.44%[68] - Sales expenses decreased by 8.95% to ¥223,099,998.35 due to pandemic-related restrictions[79] - Management expenses dropped by 43.31% to ¥337,739,590.33, primarily due to a reduced consolidation scope[79] - Financial expenses decreased by 64.53% to ¥139,922,838.34, attributed to lower interest expenses and exchange losses[79] Operational Metrics - The company operates 11 hospitals, including 1 tertiary hospital and 8 secondary or higher-level hospitals, focusing on regional medical centers[38] - The company expanded its academic promotion activities, conducting nearly 300 events in the second half of 2020 to enhance product recognition among doctors and patients[59] - The company added over 1,500 grassroots hospitals and more than 500 grade hospitals in 2020, effectively compensating for the decline in hospital medication usage due to the pandemic[59] - The hospital bed occupancy rate in China was 80.7% in 2019, indicating a high demand for inpatient services[45] - The number of patients served increased by 20% compared to the previous year, reaching 1.2 million patients[174] Market and Industry Trends - The healthcare industry in China is experiencing rapid growth, driven by an aging population and increasing healthcare awareness, with a significant rise in demand for medical services[40] - In 2019, the total healthcare expenditure in China reached CNY 65,195.9 billion, a year-on-year increase of 12.41%, with per capita healthcare expenditure at CNY 4,656.7[45] - The number of medical institutions in China increased to 1,007,545 by the end of 2019, with private hospitals growing by 6.90% year-on-year to 22,424[44] - The company is positioned to benefit from ongoing healthcare reforms aimed at addressing the challenges of accessibility and affordability in medical services[50] - The government has outlined a 10-year plan for healthcare reform, focusing on building a balanced and comprehensive medical insurance system by 2030[43] Risks and Challenges - The company is facing risks related to policy changes in the healthcare sector, which could impact its operations[112] - The company acknowledges the scarcity of high-quality medical talent as a significant risk factor affecting its service development[112] - The company is at risk of bankruptcy if its restructuring application is unsuccessful, which could lead to delisting[112] - The company faces a loan repayment obligation of ¥60 million to Huashang Bank, with ongoing litigation that may affect its financial position[154] - The company is involved in multiple lawsuits, including a claim for 91.03 million yuan related to performance compensation for 2017, which remains uncertain in its impact on future profits[145] Corporate Governance and Compliance - The company has established a comprehensive governance structure, with all board members present for the report's review, ensuring accountability[5] - The company has committed to ensuring the authenticity, accuracy, and completeness of restructuring application materials since January 20, 2016, and has strictly fulfilled this commitment[120] - The company has committed to strict compliance with relevant laws and regulations regarding share changes and has pledged to avoid any illegal trading activities[126] - The company has no reported penalties or rectifications during the reporting period, indicating compliance with regulations[155] Social Responsibility and Community Engagement - The company actively participated in COVID-19 pandemic response, deploying over 500 medical personnel to various prevention stations and screening over 300,000 individuals[192] - Total investment in poverty alleviation efforts amounted to approximately CNY 5.76 million, including CNY 5.23 million in funds and CNY 0.54 million in material donations[197] - The company helped 84 registered impoverished individuals to escape poverty during the reporting period[198] - The company provided free medical consultations and health education to rural communities through expert medical teams[197] - The company has maintained a commitment to environmental protection and improving product quality as part of its social responsibility efforts[192]

恒康医疗集团股份有限公司 2020 年第三季度报告全文 恒康医疗集团股份有限公司 2020 年第三季度报告 2020 年 10 月 1 恒康医疗集团股份有限公司 2020 年第三季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人吕东明、主管会计工作负责人吕东明及会计机构负责人(会计主 管人员)王宁声明：保证季度报告中财务报表的真实、准确、完整。 2 恒康医疗集团股份有限公司 2020 年第三季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 | --- | --- | --- | --- | --- | |-----------------------------------------------------|------------------|-------------------------|------------------|--------------- ...

Financial Performance - The company's operating revenue for the first half of 2020 was ¥1,256,467,897.88, a decrease of 32.19% compared to the same period last year[23]. - The net profit attributable to shareholders was a loss of ¥47,776,912.52, an improvement of 22.09% from a loss of ¥61,327,122.61 in the previous year[23]. - The net cash flow from operating activities was ¥130,916,111.00, down 24.19% from ¥172,683,256.46 in the same period last year[23]. - The total assets at the end of the reporting period were ¥4,827,576,486.12, a decrease of 1.68% from the previous year-end[23]. - The net assets attributable to shareholders decreased by 24.53% to ¥147,022,627.03 compared to ¥194,799,539.55 at the end of the previous year[23]. - The basic earnings per share were -¥0.0256, an improvement of 22.19% from -¥0.0329 in the same period last year[23]. - The weighted average return on net assets was -27.95%, a decline of 25.66% compared to -2.29% in the previous year[23]. - The company achieved total revenue of ¥1,256.47 million, a year-on-year decrease of 32.19%, with the medical segment generating ¥1,091.27 million (down 33.31%) and the pharmaceutical segment generating ¥159.44 million (down 16.13%)[56]. - The net profit attributable to shareholders was -¥47.77 million, an increase of 22.09% year-on-year, indicating a reduction in losses compared to the previous period[56]. - The operating cost decreased by 29.53% to ¥954,460,331.51 from ¥1,354,495,794.64 year-on-year[63]. - The company reported a significant reduction in income tax expenses, which fell by 65.80% to ¥17,188,302.10 from ¥50,251,202.59 year-on-year[63]. Operational Highlights - The company operates 12 hospitals, including 1 tertiary hospital and 9 secondary or higher-level hospitals, with nearly 8,000 open beds and approximately 300,000 outpatient visits annually[36]. - During the reporting period, outpatient services reached approximately 1.1 million visits, while inpatient services totaled around 100,000 visits, with the medical services segment accounting for 86.85% of total revenue[58]. - The pharmaceutical segment maintained stable sales performance, generating ¥159.44 million, which accounted for 12.69% of total revenue, despite challenges posed by the pandemic[62]. - The company has established a professional hospital management team and implemented a standardized management model to enhance operational efficiency and quality control[49]. - The company emphasizes improving medical quality and safety, especially during the pandemic, to ensure patient safety[42]. Strategic Initiatives - The company aims to enhance its marketing network and adjust sales strategies to improve market coverage for its pharmaceutical products[43]. - The company is focused on developing high-end domestic medical services and exploring collaborations with top health institutions and research organizations[38]. - The company has highlighted potential risks in its future development strategy and performance planning[6]. - The company has not disclosed any significant new product or technology developments in this report[6]. - The company has increased its construction projects by 2.82% compared to the beginning of the period, mainly due to ongoing renovation projects[44]. Risks and Challenges - The company is facing risks related to policy changes in the healthcare sector, which may impact operations[91]. - The company acknowledges the risk of medical service delivery due to various factors, including individual patient differences and potential medical disputes[91]. - The company recognizes the challenge of attracting and retaining high-quality medical and management talent in the competitive healthcare industry[91]. - The company is facing litigation with a total amount of approximately 1.1 billion yuan, which contributes to its high debt levels[92]. - If the company's audited net profit for 2020 remains negative, it may face delisting risks according to the Shenzhen Stock Exchange regulations[92]. - The company has received a restructuring application from creditors due to significant debt and potential insolvency, which introduces uncertainty regarding its financial future[104]. Shareholder and Governance Information - As of June 30, 2020, the controlling shareholder's shares totaling 792,509,999, representing 42.49% of the total share capital, have been frozen due to debt disputes[122]. - The controlling shareholder has delegated voting rights for 12.59% and 29.90% of the company's shares to two investment management companies[123]. - The company did not experience any changes in its controlling shareholder or actual controller during the reporting period, ensuring stability in governance[181]. - The total number of shareholders holding more than 5% of the shares includes 10 major shareholders, with no changes reported during the period[176]. - The company has appointed new directors and executives, including a new president, to support its development needs[193]. Community and Social Responsibility - The company invested approximately 2.82 million in targeted poverty alleviation efforts, including 2.29 million in cash and 0.52 million in material donations[154]. - The company helped 4 registered impoverished individuals to escape poverty during the reporting period[159]. - The investment in poverty alleviation projects for industrial development was 0.81 million, while assistance for impoverished disabled individuals amounted to 1.41 million[159]. - The company plans to continue its poverty alleviation efforts in the second half of 2020, focusing on industrial and health-related initiatives[160].

Business Model and Strategy - The company reported a shift from a single pharmaceutical manufacturing business to a dual-driven model focusing on medical services and pharmaceutical manufacturing, emphasizing a "big health" industry strategy[22] - The company plans to enhance collaboration with internationally certified molecular diagnostic laboratories to support health management and biomedical research[39] - The company aims to pursue a leading position in the Chinese traditional Chinese medicine industry with a strategy of "seeking development in stability and stability in development"[40] - The company plans to adjust its sales strategy by optimizing product structure and pricing systems, targeting specific regional markets[40] - The company is committed to enhancing its academic support and clinical research services to better serve doctors and patients nationwide[40] - The company plans to enhance internal management and expand the pharmaceutical market in 2020, focusing on a dual-driven strategy[108] - The company aims to strengthen group management and integration of hospitals, with a focus on developing core and specialty disciplines[108] - The company plans to focus resources on core businesses such as medical services and pharmaceutical manufacturing in 2020, aiming to enhance its competitive edge in regional healthcare services[139] - The company will optimize its sales strategy and product structure, targeting key products to boost market coverage and sales growth[111] Financial Performance - The company's operating revenue for 2019 was ¥3,684,467,721.58, a decrease of 4.01% compared to ¥3,838,392,197.48 in 2018[24] - The net profit attributable to shareholders for 2019 was -¥2,519,543,757.96, representing a decline of 77.71% from -¥1,417,817,723.30 in 2018[24] - The total assets at the end of 2019 were ¥4,909,889,865.73, a decrease of 43.94% from ¥8,758,983,757.39 at the end of 2018[24] - The net assets attributable to shareholders decreased by 92.81% to ¥194,799,539.55 at the end of 2019, down from ¥2,711,131,540.28 at the end of 2018[24] - The company reported a total profit of CNY -2.44 billion, a decline of 82.70%, and a net profit attributable to shareholders of CNY -2.52 billion, down 77.71%[58] - The company reported a net loss of approximately ¥2.52 billion in 2019, following a loss of about ¥1.42 billion in 2018, indicating ongoing financial challenges[120] Revenue Breakdown - In 2019, the company achieved total revenue of CNY 3.68 billion, a year-on-year decrease of 4.01%, with the medical segment generating CNY 3.20 billion, up 3.76%, and the pharmaceutical segment generating CNY 429 million, up 12.89%[58] - The medical services segment accounted for 86.94% of total revenue[60] - The pharmaceutical segment's sales revenue reached CNY 429 million, representing 11.65% of total revenue, with a year-on-year growth of 12.89%[61] - Service revenue represented 86.94% of total revenue, with a slight decline of 2.56% to approximately ¥3.20 billion[66] - Pharmaceutical revenue increased by 9.34% to approximately ¥419 million, representing 11.37% of total revenue[66] Operational Changes and Management - The company optimized resource allocation and strengthened internal management, significantly enhancing its risk resistance capabilities[40] - The company reduced management expenses to CNY 588 million in 2019, a decrease of CNY 49 million year-on-year[64] - The company established three committees for academic and management purposes to enhance the quality of medical services and internal management[59] - The company is focused on enhancing its core competitiveness and risk resistance capabilities[141] - The company is currently involved in arbitration regarding a claim for approximately 2.5 million euros in intermediary service fees[167] Audit and Compliance - The company has engaged Asia Pacific (Group) CPA Firm to provide an unqualified audit report for the financial statements[6] - The independent directors confirmed the audit report for the 2019 financial year as accurate and reflective of the company's financial status[141] - There were no significant accounting errors requiring restatement during the reporting period[146] - The company has not faced any bankruptcy reorganization issues during the reporting period[157] Shareholder and Governance Issues - The company has not distributed cash dividends for 2019 and 2018 due to losses, and no plans for stock dividends or capital reserve transfers were made[116] - The company has a clear development path for its hospitals, focusing on comprehensive hospital development as a primary strategy[108] - The actual controller has committed to avoiding any direct or indirect competition with the company since September 2014, and has strictly fulfilled this commitment[124] - The company has confirmed that all directors are responsible for the authenticity and completeness of the non-public offering application documents as of June 5, 2015, and have strictly fulfilled this commitment[127] Market and Industry Context - In 2018, the total number of medical and health institutions in China reached 997,434, with private hospitals increasing by 11.82% to 20,977[46] - The total health expenditure in China for 2018 was approximately 57,998.3 billion yuan, a year-on-year increase of 10.27%[47] - In 2018, the total number of outpatient visits in medical institutions reached 8.31 billion, with private hospitals seeing an 8.16% increase in visits[50] Future Plans and Commitments - The company plans to enhance its talent management and corporate culture to build an efficient and capable workforce[140] - Increased investment in research and development is planned to strengthen the company's core competitiveness and sustainable growth[111] - The company will collaborate with renowned institutions to develop marketable and innovative pharmaceutical products[111] - The company has established a three-year shareholder return plan, prioritizing cash dividends when conditions allow[116]

恒康医疗集团股份有限公司 2020 年第一季度报告全文 恒康医疗集团股份有限公司 2020 年第一季度报告 2020 年 04 月 1 恒康医疗集团股份有限公司 2020 年第一季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人王伟、主管会计工作负责人王伟及会计机构负责人(会计主管人 员)王宁声明：保证季度报告中财务报表的真实、准确、完整。 2 恒康医疗集团股份有限公司 2020 年第一季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 | --- | --- | --- | --- | |-----------------------------------------------------|------------------|------------------|---------------------------| | □ 是 √ 否 | 本报告期 | 上 ...

Financial Performance - Net profit attributable to shareholders was a loss of approximately CNY 108.16 million, representing a 76.44% increase in loss compared to the same period last year[9]. - Operating revenue for the reporting period was approximately CNY 886.17 million, down 2.54% year-on-year[9]. - Basic earnings per share were -CNY 0.0580, a decrease of 76.43% compared to the same period last year[9]. - The weighted average return on net assets was -4.11%, a decrease of 6.89% compared to the same period last year[9]. - The company reported a net loss of CNY 485,150,120.75 in retained earnings, compared to a loss of CNY 305,767,384.61 in the previous period[46]. - The net profit for the current period was CNY 825,720,129.81, a significant recovery from a net loss of CNY 25,107,771.19 in the previous period[71]. - The total profit for the current period was CNY 825,720,129.81, compared to a total loss of CNY 25,107,771.19 in the previous period[71]. - The company reported a total comprehensive income for the current period of CNY 825,720,129.81, a recovery from a loss of CNY 25,107,771.19 in the previous period[71]. - The company's total comprehensive income amounted to -152,414,316.72, compared to -389,454,137.96 in the previous period, indicating an improvement[80]. Assets and Liabilities - Total assets at the end of the reporting period were approximately CNY 8.43 billion, a decrease of 3.74% compared to the end of the previous year[9]. - Total current assets as of September 30, 2019, were CNY 2,057,901,206.38, a decrease of 10.4% from CNY 2,296,954,293.94 as of December 31, 2018[40]. - Total liabilities as of September 30, 2019, were CNY 5,775,111,296.23, down from CNY 5,901,333,608.49, a decrease of 2.1%[43]. - The company's total assets were CNY 8,431,747,674.79, down from CNY 8,758,983,757.39, a decrease of 3.7%[40]. - The total liabilities decreased to ¥2,192,061,826.47 from ¥2,440,871,122.42, a reduction of approximately 10.2%[56]. - The company’s total liabilities included short-term borrowings of ¥1,288,000,000.00, unchanged from the previous period[108]. - Total liabilities amounted to CNY 5,901,333,608.49, with current liabilities at CNY 2,964,779,474.64[115]. - The company has a total of CNY 1,069,310,000.00 in other non-current liabilities, reflecting potential future obligations[115]. Cash Flow - The net cash flow from operating activities was approximately CNY 254.15 million, an increase of 263.18% compared to the same period last year[9]. - Cash and cash equivalents decreased by 52.00% to ¥166,689,474.68 due to repayment of bank loans[21]. - The company reported a cash inflow from operating activities of 2,830,643,898.39, compared to 2,770,255,280.80 in the previous period, reflecting a positive trend[90]. - Cash flow from operating activities generated a net amount of ¥195,758,705.04, compared to a net outflow of ¥253,535,249.23 in the previous period, indicating a significant improvement[101]. - The total cash inflow from operating activities was ¥346,954,797.55, significantly higher than ¥27,042,792.82 in the previous period[101]. - The ending balance of cash and cash equivalents was ¥45,164,478.44, compared to ¥7,944,943.84 at the end of the previous period, showing a substantial increase[104]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 49,485[13]. - The largest shareholder, Que Wenbin, held 42.49% of the shares, totaling approximately 792.51 million shares[13]. - The company did not conduct any repurchase transactions among the top ten shareholders during the reporting period[16]. Expenses and Investments - Research and development expenses surged by 1722.53% to ¥1,065,089.62, reflecting increased investment in the soft bag project[21]. - Financial expenses rose by 51.97% to ¥265,309,378.09, driven by decreased foreign exchange gains and increased interest expenses[21]. - The company incurred management expenses of CNY 10,646,005.26, up from CNY 7,044,452.93 in the last period[68]. - The company recorded a credit impairment loss of CNY 851,493,845.62, indicating a significant financial impact[68]. - The investment income for the current period was 14,207,183.42, compared to 8,618.00 in the previous period, indicating growth in investment performance[85]. Other Financial Metrics - The company reported non-operating income of approximately CNY 12.65 million for the period[9]. - Other income increased by 1286.14% to ¥2,079,204.54, primarily from increased government subsidies[21]. - The company experienced a 33.31% reduction in taxes paid, amounting to ¥112,927,219.49, due to a decline in revenue[21]. - The company reported a significant decrease in interest expenses, with current interest expenses at ¥85,365,483.17 compared to ¥74,893,293.13 in the previous period[57]. - The company received tax refunds amounting to 247,137.43, compared to 1,471.17 in the previous period, indicating improved tax management[90]. Market Strategy - The company is focusing on expanding its market presence and enhancing product development strategies[120].

恒康医疗集团股份有限公司 2019 年半年度报告全文 恒康医疗集团股份有限公司 2019 年半年度报告 1 2019 年 08 月 恒康医疗集团股份有限公司 2019 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的 真实、准确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和 连带的法律责任。 公司负责人王伟、主管会计工作负责人于美及会计机构负责人(会计主管人 员)王宁声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 本半年度报告所涉及的公司未来发展战略、业绩规划等前瞻性陈述，属于 未来经营计划性事项，能否实现取决于市场状况变化等多种因素，存在不确定 性，并不代表公司对未来年度的盈利预测，也不构成公司对投资者及相关人士 的实质性承诺。投资者及相关人士均应对此保持足够的风险认识，且应当理解 计划、预测与承诺之间的差异。敬请投资者注意投资风险！ 公司已在本报告中详细描述了可能存在的主要风险，请查阅本报告第四节 "经营情况讨论与分析"章节相应内容。 公司计划不派发现金红利，不送红股，不以公积金转 ...

Business Model and Strategy - The company reported a shift from a single pharmaceutical manufacturing business to a dual-driven "big health" industry model, focusing on both medical services and pharmaceutical manufacturing [22]. - The company has developed a dual-driven strategy in the healthcare industry, focusing on both medical services and pharmaceutical manufacturing [38]. - The company aims to enhance its healthcare services and pharmaceutical R&D, focusing on major chronic diseases and high-end maternal and child health services [98]. - The company plans to implement a dual-driven strategy in 2019, balancing basic and non-basic healthcare services while exploring new high-end health services [99]. - The company is focused on enhancing its drug development capabilities and improving the quality of generic drugs [98]. - The company is committed to improving its operational management and resource allocation to strengthen its market position [101]. - The company recognizes the growing demand for diversified and personalized healthcare services due to urbanization and an aging population [98]. - The company will leverage its hospital network to create a comprehensive health management system covering all life stages [101]. - The company is focused on technological innovation in the medical and pharmaceutical sectors, aiming to build a translational medicine platform and enhance its capabilities in medical data resources [103]. Financial Performance - The company's operating revenue for 2018 was ¥3,838,392,197.48, representing a 12.92% increase compared to the previous year [6]. - The net profit attributable to shareholders was -¥1,417,817,723.30, a decrease of 799.09% year-on-year [6]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥1,395,854,132.33, a decline of 826.17% compared to the previous year [6]. - The total profit for the year was CNY -1,333.91 million, a year-on-year decrease of 536.19% [61]. - The company reported a net loss of approximately ¥1.42 billion for 2018, compared to a net profit of ¥202.81 million in 2017 [117]. - The company reported a significant increase in cash flow from operating activities in the second quarter, amounting to ¥203,061,444.52 [29]. - The company reported a net loss of ¥1,388,000,000 in 2018, with a significant difference from the net cash flow from operating activities of ¥522,565,203.01, primarily due to non-operating cash factors [82]. - The company has committed to transparency and accuracy in its financial disclosures, taking legal responsibility for any misstatements [129]. Investment and Dividends - The company plans not to distribute cash dividends or issue bonus shares, indicating a focus on reinvestment [7]. - The company did not distribute any cash dividends for the years 2016, 2017, and 2018, citing significant funding needs for acquisitions and projects [113][118]. - The cash dividend policy has been clearly defined, with no cash dividends or stock bonuses proposed for the past three years [114]. - The company plans to retain all earnings for future investments and operational needs, reflecting a focus on growth rather than immediate shareholder returns [113][118]. - The company has established a three-year shareholder return plan, prioritizing cash dividends over stock dividends to ensure reasonable returns for investors [111]. Operational and Market Expansion - The company operates a total of 1 tertiary hospital, 7 secondary or higher comprehensive hospitals, and 5 hospitals under construction, indicating ongoing expansion in medical services [38]. - The company operates 15 hospitals with 8,700 open beds, serving over 3.5 million outpatient visits and 260,000 inpatient discharges annually, leveraging significant clinical resources for healthcare services [44]. - The company expanded its market presence by adding 3,500 new retail pharmacies and 800 user hospitals during the reporting period [61]. - The company is focused on expanding its market presence through strategic partnerships with healthcare institutions [176]. Risk Management - The company has detailed potential risks in its report, advising investors to maintain sufficient risk awareness [7]. - The company has identified potential risks, including policy changes in the healthcare sector, which may impact its operations and will take measures to mitigate these risks [107]. Corporate Governance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and senior management [5]. - The company’s independent directors have fulfilled their responsibilities, ensuring proper governance and protection of minority shareholders' rights [112]. - The company has a long-term commitment to transparency in its financial reporting and adherence to corporate governance standards [112]. - The company has committed to avoiding any competition with its controlling shareholder and related parties, ensuring alignment of interests [122]. Social Responsibility and Community Engagement - The company invested approximately 1,027.26 million in poverty alleviation efforts, with health-related poverty alleviation accounting for about 688.57 million [192]. - The company provided medical fee reductions of 113.11 million as part of its poverty alleviation initiatives, benefiting over 1,400 impoverished individuals [192]. - The company has focused on enhancing medical service quality and expanding its healthcare capabilities, contributing to both economic and social benefits [189]. - The company is committed to continuing its precise poverty alleviation plans in 2019, focusing on industrial and health poverty alleviation [197]. Legal and Compliance Issues - The lawsuit involving Pengsheng Heavy Industry and the Xuyi Hospital has a disputed amount of CNY 2.5 million, with the first-instance judgment already in effect [149]. - The performance commitment dispute case has a total performance shortfall of CNY 91.0349 million for the year 2017, with the defendant required to bear joint liability for the debt [152]. - The company is currently negotiating the payment of CNY 25.4765 million for equity transfer price, CNY 1.2 million for legal fees, and penalty fees as per the first-instance judgment [152]. - The first-instance court ruled that the Lan'ao County First Hospital must repay a loan of CNY 1.07813 million, with the case currently under appeal [152]. Environmental Compliance - The company has actively engaged in environmental protection, ensuring all facilities operate within regulatory standards [190]. - The company has complied with various environmental protection laws and has not faced penalties for violations during the reporting period [198].

Financial Performance - The company's operating revenue for Q1 2019 was ¥932,134,661.99, a decrease of 1.05% compared to ¥942,006,366.62 in the same period last year[7] - Net profit attributable to shareholders was ¥26,899,235.72, down 47.62% from ¥51,357,567.04 year-on-year[7] - The net profit after deducting non-recurring gains and losses was ¥24,026,919.39, a decline of 52.12% compared to ¥50,176,986.27 in the previous year[7] - Basic and diluted earnings per share were both ¥0.0144, down 47.64% from ¥0.0275 in the previous year[7] - The company reported a net loss of CNY 999,397,101.11 for the period, compared to a loss of CNY 979,173,497.37 in the previous period[40] - Total operating revenue for the current period is ¥932,134,661.99, a decrease of 1.0% from ¥942,006,366.62 in the previous period[41] - Net profit for the current period is ¥33,649,901.76, down 50.3% from ¥67,671,568.20 in the previous period[43] - Operating profit decreased to ¥59,716,502.89, a decline of 38.7% from ¥97,317,266.17 in the previous period[43] - The total comprehensive income for the current period is -¥4,964,883.14, compared to ¥66,879,664.14 in the previous period[44] Cash Flow and Liquidity - The net cash flow from operating activities was ¥101,220,316.55, a significant improvement from a negative cash flow of ¥8,666,208.61 in the same period last year[7] - Cash received from sales of goods and services was ¥845,637,677.40, a decrease from ¥914,404,711.96 in the previous period[50] - The net cash flow from financing activities was -¥143,248,277.39, reflecting increased debt repayments of ¥596,000,000.00 compared to ¥367,134,546.80 in the prior year[52] - The ending balance of cash and cash equivalents decreased to ¥237,711,312.75 from ¥413,957,872.27 year-over-year[52] - The company reported a significant increase in cash inflow from operating activities, rising to ¥106,006,083.55 from ¥3,136,216.23 in the previous year[55] - The cash outflow for operating activities was reduced to ¥15,511,273.10 from ¥97,926,590.60, indicating improved operational efficiency[55] Assets and Liabilities - Total assets at the end of the reporting period were ¥8,841,307,875.56, an increase of 0.94% from ¥8,758,983,757.39 at the end of the previous year[7] - Total liabilities increased to CNY 5,988,622,609.80 from CNY 5,901,333,608.49, reflecting an increase of approximately 1.48%[34] - Current liabilities rose to CNY 3,027,142,930.49, up from CNY 2,964,779,474.64, indicating an increase of about 2.1%[34] - Long-term borrowings decreased to CNY 1,394,699,498.82 from CNY 1,588,827,002.10, a reduction of approximately 12.2%[34] - The total current assets were CNY 1,836,449,990.44[62] Shareholder Information - The top shareholder, Que Wenbin, holds 42.57% of the shares, amounting to 794,009,999 shares, which are pledged and frozen[10] - There were no significant changes in the number of shareholders or any repurchase transactions among the top shareholders during the reporting period[11] Non-Recurring Gains and Expenses - The company reported non-recurring gains totaling ¥2,872,316.33, primarily from non-current asset disposal and debt restructuring[8] - Research and development expenses skyrocketed by 5247.26% to ¥1.20 million, driven by increased investment in the Qili soft bag project[14] - Financial expenses rose by 81.68% to ¥45.36 million, due to increased loans and interest expenses[14] - Investment income increased by 266.77% to ¥7.19 million, resulting from the disposal of Guang'an Fuyuan and Guang'an Hengyuan hospitals[14] Regulatory Compliance and Commitments - The company reported a commitment to ensure the authenticity, accuracy, and completeness of information provided during the restructuring process, with strict adherence to commitments made in 2016[20] - The company has made long-term commitments regarding the authenticity of information provided by transaction parties during major asset restructuring, ensuring compliance with relevant regulations[20] - The actual controller of the company has committed to avoiding any competition with the company's business operations, ensuring that no competing activities will be undertaken by controlled entities[21] - The company has outlined measures to exit any potential competition that may arise from future business expansions, including ceasing operations or transferring competing businesses to unrelated third parties[21] - The company has confirmed that all commitments made are independently enforceable, and any violation resulting in losses will be fully compensated[21] - The company has reiterated its commitment to comply with relevant regulations regarding securities issuance and will not provide financial assistance or compensation to subscription targets[21] Other Financial Metrics - Cash and cash equivalents decreased by 31.55% to ¥237.71 million due to repayment of bank loans during the reporting period[14] - Other receivables increased by 40.03% to ¥129.77 million, attributed to new equity disposal collections[14] - Deferred tax assets decreased by 40.06% to ¥97.61 million, impacted by exchange rate fluctuations affecting the Australian subsidiary[14] - Prepayments increased by 66.38% to ¥89.35 million, reflecting a rise in hospital pre-collected inpatient fees[14] - Long-term payables surged by 350.10% to ¥358.16 million, indicating an increase in PRP long-term payables[14]