Revenue Growth - Revenue increased by 31.2% to RMB 412,004 thousand in 2023 compared to RMB 314,054 thousand in 2022[2] - Revenue from precision marketing and enterprise solutions increased by 29.3% to RMB 372,687 thousand in 2023 from RMB 288,177 thousand in 2022[3] - Revenue from intelligent patient management solutions surged by 70.2% to RMB 23,176 thousand in 2023 from RMB 13,616 thousand in 2022[3] - The company's revenue for 2023 reached approximately RMB 412.0 million, a year-on-year increase of 31.2%[7] - Revenue from precision marketing and enterprise solutions grew by 29.3% to RMB 372.7 million in 2023[8] - Revenue increased by 31.2% from RMB 314.1 million in 2022 to RMB 412.0 million in 2023, primarily driven by growth in precision marketing and enterprise solutions[22] - Precision marketing and enterprise solutions revenue grew by 29.3% from RMB 288.2 million in 2022 to RMB 372.7 million in 2023, supported by user growth and engagement[23] - Medical knowledge solutions revenue increased by 31.6% from RMB 12.3 million in 2022 to RMB 16.1 million in 2023, due to expanded product offerings and new membership marketing methods[24] - Intelligent patient management solutions revenue surged by 70.2% from RMB 13.6 million in 2022 to RMB 23.2 million in 2023, driven by the success of the single-disease patient management platform[25] - Total revenue for 2023 reached RMB 412.00 million, a 31.2% increase compared to RMB 314.05 million in 2022[61] - Revenue from precision marketing and enterprise solutions grew to RMB 372.69 million in 2023, up from RMB 288.18 million in 2022, a 29.3% increase[65] - Revenue from medical knowledge solutions increased to RMB 16.14 million in 2023, up from RMB 12.26 million in 2022, a 31.6% growth[65] - Revenue from intelligent patient management solutions rose to RMB 23.18 million in 2023, up from RMB 13.62 million in 2022, a 70.2% increase[65] Profit and Margin Performance - Gross profit rose by 18.1% to RMB 251,335 thousand in 2023 from RMB 212,741 thousand in 2022[2] - Net profit attributable to owners of the company surged by 106.5% to RMB 242,301 thousand in 2023 from RMB 117,321 thousand in 2022[2] - Non-HKFRS adjusted net profit grew by 86.8% to RMB 271,093 thousand in 2023 from RMB 145,155 thousand in 2022[2] - Net profit for 2023 was RMB 251.8 million, a significant increase of 99.1% compared to 2022[7] - The net profit margin increased by 20.8 percentage points to 61.1% in 2023[7] - Adjusted net profit for 2023 was RMB 271.1 million, an increase of 86.8% compared to 2022[7] - Gross profit rose by 18.1% from RMB 212.7 million in 2022 to RMB 251.3 million in 2023, with a gross margin decline from 67.7% to 61.0%[27] - Profit before tax surged by 87.5% from RMB 135.0 million in 2022 to RMB 253.1 million in 2023[33] - Net profit for the year increased by 99.1% from RMB 126.4 million in 2022 to RMB 251.8 million in 2023, with net profit margin rising from 40.3% to 61.1%[35][36] - Adjusted net profit increased by 86.8% from RMB 145.2 million in 2022 to RMB 271.1 million in 2023, with adjusted net profit margin rising from 46.2% to 65.8%[37] - Gross profit for 2023 was RMB 251,335 thousand, up from RMB 212,741 thousand in 2022[48] - Net profit for 2023 was RMB 251,760 thousand, more than double the RMB 126,421 thousand in 2022[48] - Basic earnings per share increased to RMB 242,301 thousand in 2023 from RMB 117,321 thousand in 2022, reflecting strong profit growth[79] User and Engagement Metrics - Registered user base grew to 6.8 million in 2023, up from 6.2 million in 2022[4] - Registered physician users increased to 4.0 million in 2023, covering 87% of Chinese practicing physicians[4][5] - Average monthly active users reached 2.40 million in 2023, up from 2.05 million in 2022[4] - Paid clicks increased to 9.7 million in 2023 from 7.2 million in 2022[4] - The number of clients for the precision marketing and enterprise solutions increased by 40.0% to 182 in 2023[8] - The number of products covered by the precision marketing and enterprise solutions increased from 284 in 2022 to 386 in 2023[8] - The number of registered physician users who participated in paid clicks increased from 627,000 in 2022 to 774,000 in 2023[8] - Paid clicks increased from 7.2 million in 2022 to 9.7 million in 2023[8] - The company's chronic disease management platform accumulated approximately 377,000 users and 105,000 participating physicians by the end of 2023[15] Technology and Innovation - The company successfully commercialized generative AI technology, exemplified by the Medlive 3.0 intelligent medical consultant system[6] - The company's clinical research team has expanded significantly, with project management, clinical operations, and data statistics growing rapidly, leveraging digital clinical trial systems to enhance efficiency in clinical research[10] - The company launched a remote intelligent clinical trial system (DCT), patient digital follow-up system, and AI-based journal selection tools, improving efficiency in patient recruitment, data collection, and quality control[10] - The company launched the "e研通" platform to enhance physician research efficiency and upgraded the "论文通" platform with AI-powered SCI journal selection services to improve publication success rates[14] - The company plans to strengthen cross-departmental collaboration using AI and big data to improve service efficiency[19] - The company plans to invest HKD 374.2 million in developing and expanding technology applications, particularly in machine learning, natural language processing, knowledge graphs, and user understanding, with HKD 56.7 million utilized and HKD 317.5 million remaining, expected to be used by December 2027[97] Strategic Investments and Acquisitions - The company plans to continue strategic investments and acquisitions to expand its customer base and enhance technological capabilities[46] - The company acquired 60% equity in Beijing Medicon Information Consulting Co., Ltd. for RMB 100,253,400, with payments made in four installments[44] - The company acquired 50% equity in Shicheng Medical Consulting Co., Ltd. for RMB 65,000,000, with a profit guarantee of RMB 58,080,000 over four years[45] - The company acquired 60% equity in Lingbo Consulting (Shanghai) Co., Ltd. for RMB 33,930,000, with a profit guarantee of RMB 21,720,000 over four years[45] - The company has set aside HKD 2,338.6 million for strategic investments or acquisitions, with HKD 195.8 million utilized and HKD 2,142.8 million remaining[97] Financial Position and Expenses - Other income and gains increased significantly from RMB 75.7 million in 2022 to RMB 188.5 million in 2023, mainly due to higher bank interest income and government subsidies[28] - Sales and distribution expenses grew by 13.4% from RMB 28.9 million in 2022 to RMB 32.8 million in 2023, primarily due to an increase in sales personnel[29] - Administrative expenses increased by 18.0% from RMB 122.4 million in 2022 to RMB 144.5 million in 2023, primarily due to increased platform maintenance and upgrade costs for the medical vertical and higher R&D expenses[30][31] - Financing costs decreased from RMB 0.5 million in 2022 to RMB 0.4 million in 2023, mainly due to reduced lease liability interest[32] - Income tax expenses decreased by 84.1% from RMB 8.6 million in 2022 to RMB 1.4 million in 2023, largely due to increased stock option exercises and tax deductions[34] - Cash and cash equivalents increased to RMB 4,358.3 million in 2023 from RMB 4,187.3 million in 2022, with 36.4% denominated in HKD, 10.5% in RMB, and 53.1% in USD[40] - The company has no short-term or long-term bank borrowings as of December 31, 2023, except for lease liabilities of RMB 8.2 million[41] - The company's asset-liability ratio was zero as of December 31, 2023, with no borrowings[42] - Capital expenditures for 2023 amounted to approximately RMB 88.2 million, a significant increase from RMB 46.0 million in 2022, primarily due to acquisitions and IT equipment expenses[43] - The company had 742 full-time employees as of December 31, 2023, with total employee costs of approximately RMB 159.2 million for the year[47] - Exchange rate differences amounted to 69,317 thousand RMB, with other comprehensive income for the year (after tax) at 63,056 thousand RMB, and total comprehensive income for the year reaching 314,816 thousand RMB[50] - Non-current assets totaled 321,228 thousand RMB, with property, plant, and equipment at 2,620 thousand RMB, and goodwill increasing to 192,525 thousand RMB from 111,518 thousand RMB in the previous year[51] - Current assets amounted to 4,572,588 thousand RMB, with trade receivables at 109,871 thousand RMB and cash and cash equivalents at 4,358,255 thousand RMB[51] - Current liabilities totaled 189,772 thousand RMB, with trade payables at 14,771 thousand RMB and accrued expenses at 135,238 thousand RMB[51] - Non-current liabilities amounted to 58,842 thousand RMB, with contingent consideration payable at 47,663 thousand RMB and deferred tax liabilities at 7,536 thousand RMB[52] - Total equity reached 4,645,202 thousand RMB, with equity attributable to owners of the parent company at 4,597,369 thousand RMB and non-controlling interests at 47,833 thousand RMB[53] - The cost of services provided increased to RMB 160,481 thousand in 2023, up from RMB 101,132 thousand in 2022, representing a 58.7% increase[72] - R&D expenses rose to RMB 54,255 thousand in 2023, compared to RMB 46,231 thousand in 2022, a 17.4% increase[72] - Employee benefits expenses, excluding directors and top executives, totaled RMB 149,102 thousand in 2023, up from RMB 139,470 thousand in 2022, a 6.9% increase[72] - The company's effective tax rate for 2023 was 0.54%, significantly lower than the statutory rate of 25% due to preferential tax rates and other adjustments[76] - Trade receivables increased to RMB 109,871 thousand in 2023 from RMB 95,079 thousand in 2022, with a corresponding increase in impairment allowance to RMB 1,319 thousand[80][82] - The company's total tax expense for 2023 was RMB 1,372 thousand, significantly lower than the RMB 8,616 thousand in 2022 due to various tax adjustments and preferential rates[75] - The expected credit loss rate for trade receivables aged 1 to 2 years and overdue increased from 38.7% in 2022 to 40.3% in 2023, while the total expected credit loss increased from RMB 814,000 in 2022 to RMB 1,319,000 in 2023[84][85] - The total trade receivables increased from RMB 95,893,000 in 2022 to RMB 111,190,000 in 2023, with the highest expected credit loss rate of 100% for receivables aged over 3 years and overdue[84][85] - Trade payables increased significantly from RMB 2,709,000 in 2022 to RMB 14,771,000 in 2023, with the majority (RMB 12,722,000) aged less than three months[86] Dividends and Share Repurchases - The company proposed a final dividend of RMB 12.48 cents per share for 2023, up from RMB 6.54 cents per share in 2022[76] - The company repurchased 100,000 shares at a total cost of HKD 744,945 (approximately RMB 683,000) in October 2023, with the highest price paid per share being HKD 7.48[94] - The company proposed a final dividend of RMB 0.1248 per share (equivalent to HKD 0.1375), payable in HKD to shareholders on the register as of June 3, 2024[91] IPO Proceeds Allocation - The company plans to allocate HKD 280.7 million to improve its medical knowledge solutions and enrich its platform's medical knowledge information and tools, with HKD 36.2 million already utilized and HKD 244.5 million remaining, expected to be used by December 2027[96] - HKD 187.1 million is allocated to enhance patient care services, with HKD 33.7 million utilized and HKD 153.4 million remaining, expected to be used by December 2027[96] - The company has allocated HKD 140.3 million to improve intelligent clinical research solutions, with HKD 36.8 million utilized and HKD 103.5 million remaining, expected to be used by December 2027[96] - HKD 467.7 million is allocated for talent recruitment and collaboration with experts, with HKD 83.6 million utilized and HKD 384.1 million remaining, expected to be used by December 2027[97] - HKD 93.6 million is allocated to establish data centers and enhance IT infrastructure computing and storage capabilities, with HKD 19.1 million utilized and HKD 74.5 million remaining, expected to be used by December 2027[97] - HKD 467.7 million is allocated for general working capital and other corporate purposes, with HKD 106.0 million utilized and HKD 361.7 million remaining[97] - The total IPO proceeds allocated amount to HKD 4,677.3 million, with HKD 640.4 million utilized and HKD 4,036.9 million remaining[97] - The company has not used any IPO proceeds for purchasing or subscribing to financial products, and the unused funds are deposited with licensed financial institutions[97] Geographic Revenue Breakdown - Revenue from mainland China increased to RMB 402.13 million in 2023, up from RMB 296.89 million in 2022, representing a 35.5% year-over-year growth[61] - Overseas revenue decreased to RMB 9.87 million in 2023, down from RMB 17.17 million in 2022, a 42.5% year-over-year decline[61] Other Financial Metrics - Bank interest income surged to RMB 183.88 million in 2023, compared to RMB 66.24 million in 2022, a 177.6% year-over-year growth[70] - Total other income and gains reached RMB 188.48 million in 2023, up from RMB 75.74 million in 2022, a 148.9% increase[70] - The company's remaining performance obligations (unfulfilled or partially unfulfilled) as of December 31, 2023, amounted to RMB 182.30 million, with RMB 114.95 million expected to be recognized within one year and RMB 67.35 million expected to be recognized after one year[69] - The company's subsidiaries primarily engage in precision marketing, enterprise solutions, medical knowledge solutions, and intelligent patient management solutions[54] - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards (HKFRS) and the disclosure requirements of the Hong Kong Companies Ordinance, using the historical cost convention[55] - The consolidated financial statements include the financial statements of the company and its subsidiaries for the year ended December 31, 2023, with subsidiaries being entities directly or indirectly controlled by the company[56] - The company evaluates control over investees by considering contractual arrangements, rights arising from other contractual arrangements, and voting rights, with changes in control reassessed based on facts and circumstances[57] - The company's subsidiaries in China benefited from preferential tax rates, with some qualifying for a 15% rate as high-tech enterprises and others for a 5% rate as small and micro enterprises[74] - The company's trade receivables are primarily on credit terms of up to 180 days, with overdue balances regularly reviewed by senior management[80]

User Engagement and Platform Growth - As of June 30, 2023, the number of registered users on the Medlive platform reached approximately 6.4 million, with about 3.81 million being licensed physicians, representing approximately 86.6% of the total licensed physicians in China[6]. - The average monthly active users (MAUs) of the Medlive platform in the first half of 2023 reached 2.20 million, indicating a strong user engagement[7]. - As of June 30, 2023, the number of registered users on the Medlive platform reached approximately 6.4 million, with about 3.81 million being practicing physicians in China, representing approximately 86.6% of the total practicing physicians in the country[9]. - The average monthly active users on the Medlive platform reached 2.20 million in the first half of 2023, indicating strong user engagement[9]. Financial Performance - For the six months ended June 30, 2023, the Group's revenue was approximately RMB 173.5 million, reflecting a year-on-year increase of 31.5%[12]. - The net profit for the same period increased by 267.5% to RMB 101.7 million, with the net profit margin rising from approximately 21.0% to approximately 58.6%, an increase of 37.6 percentage points[14]. - The adjusted net profit for the six months ended June 30, 2023, was approximately RMB 119.8 million, representing a 122.0% increase compared to RMB 54.0 million for the same period in 2022[14]. - Revenue increased by approximately 31.5% from approximately RMB132.0 million for the six months ended June 30, 2022, to approximately RMB173.5 million for the same period in 2023, primarily due to growth in precision marketing and corporate solutions[43]. - Revenue from precision marketing and corporate solutions rose by approximately 33.5% from approximately RMB118.4 million for the six months ended June 30, 2022, to approximately RMB158.1 million for the same period in 2023, driven by an increase in the healthcare customer base from 84 to 124[43]. - The Group's profit before tax increased by approximately 202.9% from approximately RMB33.9 million for the six months ended June 30, 2022, to approximately RMB102.7 million for the same period in 2023[55]. - The Group's profit for the period increased by approximately 267.5% from approximately RMB27.7 million for the six months ended June 30, 2022, to approximately RMB101.7 million for the same period in 2023[56]. Strategic Acquisitions and Partnerships - In June 2023, the company acquired a 50% equity interest in Beijing SCMedcon Co., Ltd., expanding its service offerings to pharmaceutical and medical device companies[8]. - The Group acquired a 50% stake in Beijing Shicheng Medical Consulting Co., further expanding its service offerings to pharmaceutical and medical device companies[9]. - The Group acquired 50% equity interests in SCMedcon for a cash consideration of RMB65,000,000 on June 12, 2023[135]. - The acquisition allows the Group to enhance its capabilities in organizing medical exhibitions and providing related services[135]. - The Group's strategy includes pursuing opportunities for management consulting and medical technology services through SCMedcon[135]. Technology and Innovation - The Group continues to invest in AI technology and has established collaborations with various GPT model platforms to enhance its digital marketing solutions[11]. - The Group aims to provide more intelligent services by embedding medical expertise into its business model, enhancing the overall healthcare ecosystem[11]. - The company leverages AI technology to create an analysis and content recommendation engine for physicians' online learning, supporting digital education throughout the product lifecycle[18]. - The Group plans to leverage AI and machine learning to develop innovative research tools, including AI writing assistants, to improve research efficiency for physicians[36]. Market Trends and Industry Insights - The digital marketing of the pharmaceutical industry has rebounded in early 2023, driven by the resumption of regular hospital operations and accelerated drug approval processes[5]. - The Group's performance obligation for application software development services is satisfied over time as services are rendered or at the point in time when services are accepted according to the agreement[110]. - The Group's revenue recognition includes services transferred at a point in time and over time, with total revenue recognition for services at RMB 173,506,000[109]. Research and Development - The company has established the Medlive Oncology Clinical Science Committee, which includes top-tier experts in various cancer fields, to enhance clinical research capabilities[23]. - The company provides customized trial design and monitoring processes for real-world studies (RWS), improving trial efficiency and data quality[22]. - Research and development costs for the six months ended June 30, 2023, were RMB 18,587,000, up from RMB 16,844,000 in 2022, reflecting an increase of approximately 10%[115]. Customer Solutions and Services - The Medlive platform provides high-quality medical content and tools, addressing the needs of physicians in clinical diagnosis, professional learning, and medical research[7]. - The Group offers corporate solutions to improve the efficiency of clinical trials and market research for pharmaceutical and medical device companies[20]. - The Group's intelligent patient management solutions focus on chronic diseases such as breast cancer, lung cancer, and diabetes, with plans for future expansion[33]. Financial Position and Cash Flow - As of June 30, 2023, the Group had cash and cash equivalents of approximately RMB4,373.3 million, compared to approximately RMB4,187.3 million as of December 31, 2022[63]. - The Group's capital expenditure for the six months ended June 30, 2023, was approximately RMB46.7 million, compared to RMB45.6 million for the same period in 2022[67]. - The Group's total comprehensive income for the period was RMB248,494, compared to RMB219,503 in the previous period[78]. - Cash generated from operating activities for the six months ended June 30, 2023, was RMB30,320,000, compared to RMB28,566,000 for the same period in 2022, reflecting an increase of about 6.1%[91]. Shareholder Information and Dividends - The company declared a final dividend of RMB 6,376,000 for the year 2022, which was paid to non-controlling shareholders[88]. - An interim dividend of RMB 10.67 cents per ordinary share was declared on August 29, 2023, amounting to approximately RMB 77,580,000, compared to no interim dividend in the same period of 2022[121]. - The interim dividend will be paid to shareholders whose names appear on the register of members on 13 November 2023, with the register closing from 9 November 2023 to 13 November 2023[197]. Regulatory and Compliance - The provision of medical knowledge solutions involves fees and is subject to PRC regulations on value-added telecommunications[200]. - The Group is engaged in foreign-related market investigation and production of media content, which may be subject to foreign ownership restrictions[200]. - The Group's Internet hospital services and SaaS solutions may also face restrictions on foreign ownership[200].

Share Awards - 500,000 share awards were granted on January 17, 2022, with a closing price of HKD 21.90 per share on January 14, 2022[1] - The total number of share awards and options available for grant under the share award plan and post-IPO option plan was 69,517,600 as of January 1, 2022, and decreased to 69,017,600 by December 31, 2022[1] - No additional share awards were granted during the fiscal year ending December 31, 2022, apart from the aforementioned[1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容所產生或 因依賴該等內容而引致的任何損失承擔任何責任。 Medlive Technology Co., Ltd. 醫脈通科技有限公司 （於開曼群島註冊成立的有限責任公司） （股份代號：2192） 截至2023年6月30日止六個月的中期業績公告 | --- | --- | --- | --- | --- | |-------|-----------------------------------------------------------------------------------------------------|---------------------------------------------------------------|----------------------|--------------| | | | | | | | | 財務摘要 | | | | | | | 截至 6 月 30 日止六個月 2023 年 （未經審核） （人 ...

Financial Performance - In 2022, Medlive Technology Co., Ltd. reported a revenue of RMB 314,054,000, representing an increase of 10.0% from RMB 284,440,000 in 2021[12]. - The gross profit for 2022 was RMB 212,741,000, up from RMB 200,734,000 in 2021, indicating a growth of 6.3%[12]. - Profit for the year surged to RMB 126,421,000, compared to RMB 45,245,000 in 2021, marking a significant increase of 179.5%[12]. - The total equity of the company reached RMB 4,431,914,000 in 2022, an increase from RMB 3,972,193,000 in 2021, reflecting a growth of 11.5%[14]. - Non-current assets rose to RMB 251,502,000 in 2022, compared to RMB 102,572,000 in 2021, showing a substantial increase of 144.5%[14]. - Current assets increased to RMB 4,351,727,000 in 2022, up from RMB 4,012,989,000 in 2021, which is a growth of 8.4%[14]. - For the year ended December 31, 2022, the Group's revenue was approximately RMB 314.1 million, representing an increase of 10.4% compared to the same period last year[28]. - The Group's profit for the year increased from RMB 45.2 million for the year ended December 31, 2021, to RMB 126.4 million for the year ended December 31, 2022, reflecting a growth of 179.4%[30]. - The net profit margin increased from approximately 15.9% for the year ended December 31, 2021, to approximately 40.3% for the year ended December 31, 2022, representing an increase of 24.4 percentage points[30]. - The adjusted net profit for the year ended December 31, 2022, was approximately RMB 144.0 million, an increase of approximately 34.7% compared to RMB 106.9 million for the year ended December 31, 2021[31]. - The adjusted net profit margin for the year ended December 31, 2022, was approximately 45.8%, an increase of 8.2 percentage points compared to approximately 37.6% for the year ended December 31, 2021[30]. User Engagement and Platform Growth - In 2022, the number of registered users on the Medlive platform reached a new high, with licensed physician users increasing to 3.72 million, accounting for 85% of all licensed physicians in China[18]. - The average number of monthly active users on the platform reached 2.05 million in 2022, indicating improved user engagement[18]. - The number of paying customers expanded to 130, and the number of marketed products increased to 284 in 2022[18]. - The platform accumulated nearly 200,000 pieces of original professional content, achieving an average monthly reading volume of 330 million in 2022[26]. - The eBroadcasting channel added approximately 5,000 new videos in 2022, bringing the total to over 48,000, with channel visitors reaching 1.86 million, a 152% increase compared to 2021[27]. Strategic Initiatives and Future Plans - The company aims to leverage advancements in digitalization and big data to enhance its business model and meet the growing demand for digital healthcare solutions[15]. - The introduction of new regulations in China is expected to promote the development of digitalized medical care, providing opportunities for Medlive to expand its digital marketing efforts[16]. - The company is focusing on the integration of smart medical care and the improvement of informatization levels in medical institutions as part of its future strategy[15]. - Medlive's management anticipates that the ongoing reforms in the national medical system will create a favorable environment for growth in the digital healthcare sector[15]. - Medlive aims to expand its business upstream in the industrial chain, particularly in clinical trials and post-launch real-world research stages[23]. - The company plans to enhance strategic cooperation with authoritative medical institutions domestically and internationally, seeking quality target companies for potential mergers and acquisitions[23]. - The Group plans to explore strategic partnerships, investments, and acquisitions to enhance technological capabilities and expand the customer base[55]. - The Group intends to provide extensive support to pharmaceutical and medical device companies in accumulating evidence through Real-World Studies (RWS) and optimizing clinical decision-making[54]. Technological Advancements - The search click rate on the platform increased from 30% to 80% due to the integration of AI technology[22]. - The Group launched products and tools such as a rare disease inquiry assistant, AI journal selection, AI writing, and decentralized clinical trial (DCT) to enhance clinical research efficiency and reduce costs[28]. - The DCT system developed by the company significantly improved the efficiency of clinical trials, aligning with the drug regulatory center's principle of "putting patients first"[37][40]. - The Group leverages AI technology to establish an analysis engine for physicians' online learning, supporting digital education for various pharmaceutical products[33]. - The AI-enabled search engine of the "医搜" platform allows for comprehensive and precise medical information retrieval, optimizing the content retrieval algorithm in 2022[39][41]. Corporate Governance and Management - The Group's management team includes experienced professionals with backgrounds in medical information technology, software development, and consulting, enhancing its operational capabilities[92][96]. - The company has a strong leadership team with diverse backgrounds in finance, consulting, and technology[98][99][100]. - The board is focused on providing professional advice and judgment to enhance corporate governance and strategic direction[98][100]. - The Group emphasizes effective talent management as crucial for long-term success, offering comprehensive training programs and competitive salaries[144]. - The Group has implemented share incentive schemes to align the interests of employees and senior management with those of the Company[147]. Social Responsibility and Sustainability - Medlive is committed to sustainable growth and fulfilling social responsibilities, including employee development and environmental protection[21]. - The Group is committed to social responsibility, promoting employee benefits, and achieving sustainable growth[126]. Regulatory Compliance - The Group has complied with relevant PRC laws and regulations, obtaining all necessary licenses and permits for its operations[127]. - As of December 31, 2022, the Group had no significant violations of applicable laws and regulations in its operations in China[130]. Acquisitions and Investments - The Group acquired a 60% equity interest in Beijing Medcon in October 2021, a leading SaaS solution platform for academic conferences in the PRC[185]. - The cash consideration for acquiring 60% equity interest in Beijing Medcon was RMB100,253,400, payable in four installments, with adjustments based on net profit performance[85]. - The Group plans to continue pursuing strategic investments and acquisitions that can generate synergies with existing solutions and enhance technological capabilities[89].

Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 314,054,000, representing a 10.4% increase from RMB 284,440,000 in 2021[2] - Net profit for the year reached RMB 126,421,000, a significant increase of 179.4% compared to RMB 45,245,000 in the previous year[2] - The group's revenue for the year ended December 31, 2022, was approximately RMB 314.1 million, an increase of 10.4% compared to the previous year[7] - The net profit for the year increased to RMB 126.4 million, representing a year-on-year growth of 179.4%, with a net profit margin of approximately 40.3%[7] - The adjusted net profit for the year was approximately RMB 144.0 million, up about 34.7% from RMB 106.9 million in the previous year, with an adjusted net profit margin of approximately 45.8%[7] - The total comprehensive income for 2022 was RMB 456.31 million, compared to a loss of RMB 8.69 million in 2021, showing a strong turnaround[43] - Basic earnings per share rose to RMB 16.42 cents in 2022 from RMB 6.59 cents in 2021, reflecting strong profitability growth[42] - Pre-tax profit for 2022 was RMB 135,037 thousand, a significant increase from RMB 69,927 thousand in 2021, representing a growth of 93.5%[67] - The tax expense calculated at the statutory tax rate of 25% for 2022 was RMB 33,760 thousand, compared to RMB 17,482 thousand in 2021, reflecting an increase of 93.5%[67] User Engagement and Growth - The number of registered users reached approximately 6.2 million, with registered physician users increasing to 3.7 million, up from 5.5 million and 3.1 million respectively in 2021[4] - The average monthly active users for 2022 were 2.05 million, compared to 1.61 million in 2021, reflecting a growth in user engagement[4] - The number of participating physicians in paid clicks increased to 627,000, up from 543,000 in 2021, reflecting an increase of 84,000[8] - The search click-through rate on the medical knowledge platform improved from 30% in 2021 to 80% in 2022, indicating enhanced user engagement[11] Revenue Segmentation - The precision marketing and enterprise solutions segment generated RMB 288,177,000 in revenue, accounting for 91.8% of total revenue, with an 11.4% year-over-year growth[3] - The medical knowledge solutions segment contributed RMB 12,261,000, maintaining a stable revenue level compared to the previous year[3] - Revenue from precision marketing and enterprise solutions reached RMB 288,177,000 in 2022, up from RMB 258,794,000 in 2021, reflecting a growth of 11.3%[56] - Revenue from mainland China reached RMB 296,886,000 in 2022, up from RMB 273,655,000 in 2021, indicating a growth of about 8.5%[54] - Overseas revenue increased to RMB 17,168,000 in 2022, compared to RMB 10,785,000 in 2021, reflecting a significant growth of approximately 59.5%[54] Strategic Initiatives and Innovations - The company launched several new AI-driven tools, including rare disease query assistants and remote intelligent clinical trials, enhancing clinical research efficiency[6] - The company launched the "e Research通" platform in 2022 to enhance research efficiency for doctors, featuring tools such as AI writing assistants and literature management[12] - The group established a comprehensive disease knowledge base and a digital marketing service model that supports various clinical research scenarios, enhancing the efficiency of clinical trials[9] - The group launched real-world research (RWS) services, providing integrated research services across multiple therapeutic areas, including oncology and cardiology[9] - The company is focused on leveraging digital marketing trends in the pharmaceutical and medical device sectors, driven by regulatory changes and the push for digital transformation in healthcare[5] Financial Position and Investments - The group had cash and cash equivalents of approximately RMB 4,187.3 million as of December 31, 2022, compared to RMB 3,879.1 million as of December 31, 2021[35] - The group had no short-term or long-term bank borrowings as of December 31, 2022, with a debt-to-equity ratio of zero[36][37] - The company plans to continue strategic investments and acquisitions that create synergies with existing solutions and expand its customer base[40] - The company plans to enhance patient care services with an allocation of HKD 467.7 million, which remains fully unutilized as of December 31, 2022[82] Operational Costs and Expenses - Sales costs rose by approximately 21.0% from RMB 83.7 million in 2021 to RMB 101.3 million in 2022, primarily due to business expansion and increased employee benefits[21] - Administrative expenses increased by approximately 20.2% from RMB 101.8 million in 2021 to RMB 122.4 million in 2022, driven by platform maintenance and R&D costs[25] - R&D expenses rose to RMB 46,231,000 in 2022, compared to RMB 25,331,000 in 2021, representing an increase of 82.5%[63] Corporate Governance and Compliance - The company has established an audit committee comprising three independent non-executive directors to oversee compliance with applicable accounting principles[88] - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange, with a noted deviation regarding the roles of the chairman and CEO[85] - The board approved the financial statements on March 23, 2023, ensuring compliance with regulatory requirements[77]

Financial Performance - For the year ended December 31, 2021, Medlive reported revenue of RMB 284,440,000, a 33.1% increase from RMB 213,529,000 in 2020[14]. - Gross profit for 2021 was RMB 200,734,000, representing a gross margin of approximately 70.6%[14]. - The profit for the year attributable to owners of the parent was RMB 40,616,000, a significant decrease of 52.3% compared to RMB 85,197,000 in 2020[14]. - Non-HKFRS adjusted net profit for the same period was RMB 106.9 million, reflecting a growth of 25.4% year-on-year[26]. - The Group's revenue increased from approximately RMB 213.5 million for the year ended December 31, 2020, to approximately RMB 284.4 million for the year ended December 31, 2021, representing an increase of approximately 33.2%[59]. - The Group's gross profit increased from approximately RMB 156.2 million for the year ended December 31, 2020, to approximately RMB 200.7 million for the year ended December 31, 2021, representing an increase of approximately 28.5%[59]. - The Group's profit for the year decreased by approximately 46.9% from approximately RMB 85.2 million for the year ended 31 December 2020 to approximately RMB 45.2 million for the year ended 31 December 2021[95]. - The profit attributable to owners of the parent decreased by approximately 52.3% from approximately RMB 85.2 million to approximately RMB 40.6 million[99]. User Engagement and Market Presence - As of December 31, 2021, Medlive's platform had approximately 5.50 million registered users, with about 3.10 million being licensed physicians, accounting for approximately 75% of all licensed physicians in China[20]. - The healthcare customer base and the number of healthcare products and services have increased steadily due to higher user engagement and the ongoing healthcare reform[30]. - In 2021, the Group had 106 healthcare customers for its precision marketing and corporate solutions, an increase from 81 in 2020[49]. - The Group marketed 242 products of healthcare customers using its precision marketing solutions in 2021, compared to 191 in 2020[49]. - The digital healthcare marketing proportion in China increased from 0.8% in 2018 to 2.3% in 2022, and is projected to reach 11.4% by 2025, with an expected market size of RMB 111.0 billion[32]. Strategic Developments - Medlive was successfully listed on the Main Board of the Hong Kong Stock Exchange on July 15, 2021, marking a significant milestone in its international development[18]. - In November 2021, Medlive was included in the Hang Seng Composite Index, highlighting its growth potential recognized by the capital market[18]. - The Group acquired a 60% equity interest in Beijing Medcon in October 2021, enhancing its capability in providing medical conference services[53]. - The Group plans to continue pursuing strategic investments and acquisitions to enhance its technological capabilities and expand its customer base, utilizing proceeds from the Global Offering for such purposes[134][136]. Operational Efficiency and Cost Management - The Group's cost of sales increased by approximately 46.1% from approximately RMB 57.3 million in 2020 to approximately RMB 83.7 million in 2021, primarily due to higher employee benefit expenses and technology service fees[80]. - Administrative expenses surged by approximately 212.0% from approximately RMB 32.6 million in 2020 to approximately RMB 101.8 million in 2021, largely due to listing expenses and increased research and development costs[88]. - Selling and distribution expenses increased by approximately 28.9% from approximately RMB 20.0 million in 2020 to approximately RMB 25.8 million in 2021, driven by higher promotion activities[87]. Employee and Management Structure - The Group had a total of 502 full-time employees as of 31 December 2021, with employee costs amounting to approximately RMB 104.4 million, up from RMB 51.6 million in 2020, representing an increase of 102%[141]. - The increase in employee costs was primarily due to business growth and the recognition of share-based payment compensation of approximately RMB 14.3 million for key employees[141]. - The company employs stock option plans and share incentive plans to align the interests of employees and senior management with those of the company[141]. - The management team includes members with advanced degrees in finance and business administration, enhancing strategic decision-making capabilities[192][198]. Financial Position and Capital Management - As of 31 December 2021, the Group had cash and cash equivalents of approximately RMB 3,879.1 million, a significant increase from RMB 147.1 million as of 31 December 2020[115][116]. - The Group did not have any short-term or long-term bank borrowings, resulting in a gearing ratio of zero as of 31 December 2021[117][118]. - The Group intends to finance its expansion and business operations using a combination of cash generated from operating activities and the net proceeds received from the Global Offering[108]. - The net proceeds received from the Global Offering in July 2021 have been placed in short-term deposits with licensed financial institutions[110].