Market Expansion and Acquisitions - Jinxin Fertility Group has expanded its market share in Southwest China by acquiring Jiuzhou Hospital and Hewanjia Hospital, further strengthening its presence in the region[3] - Jinxin Fertility Group acquired a new property in February 2022, which is expected to be operational by the first half of 2025, enhancing VIP services and capacity in Shenzhen and the Greater Bay Area[3] - Jinxin Fertility Group established a strategic partnership with Warburg Pincus in November 2023 to enhance acquisition opportunities and support its M&A strategy[4] - In July 2024, the company entered the Southeast Asian IVF market through a partnership with PT Morula Indonesia, which operates 10 IVF clinics across Indonesia[4] - The company completed a 30% equity acquisition of Morula, Indonesia's largest assisted reproductive medical service group, to strengthen its presence in Southeast Asia[24] - In April 2024, the group entered into a share subscription and equity transfer agreement to acquire a total of 30% equity in Morula, with a total consideration of approximately RMB 189.5 million, completed in July 2024[67] - The group completed the acquisition of a 30% equity stake in PT Morula Indonesia for a total consideration of approximately RMB 189,491 thousand[194] Financial Performance - Revenue for the first half of 2024 increased by 8.2% to RMB 1,443.756 million compared to RMB 1,333.906 million in the same period of 2023[7] - Net profit for the first half of 2024 decreased by 15.0% to RMB 190.313 million from RMB 223.801 million in the same period of 2023[7] - Adjusted net profit for the first half of 2024 increased slightly by 1.8% to RMB 259.597 million compared to RMB 255.039 million in the same period of 2023[7] - Gross profit margin decreased to 40.4% in the first half of 2024 from 42.3% in the same period of 2023[7] - Total assets decreased slightly by 0.3% to RMB 14,848.571 million as of June 30, 2024, compared to RMB 14,896.177 million as of December 31, 2023[7] - Bank balances and cash decreased by 17.1% to RMB 517.321 million as of June 30, 2024, compared to RMB 624.280 million as of December 31, 2023[7] - Revenue for the six months ended June 30, 2024, increased to RMB 1,443,756 thousand, up 8.2% from RMB 1,333,906 thousand in the same period in 2023[117] - Gross profit for the six months ended June 30, 2024, was RMB 583,016 thousand, compared to RMB 564,324 thousand in the same period in 2023, reflecting a 3.3% increase[117] - Net profit for the six months ended June 30, 2024, was RMB 190,313 thousand, down 15% from RMB 223,801 thousand in the same period in 2023[117] - Total comprehensive income for the six months ended June 30, 2024, was RMB 209,269 thousand, compared to RMB 446,601 thousand in the same period in 2023, a decrease of 53.1%[117] - Basic earnings per share for the six months ended June 30, 2024, were RMB 0.07, down from RMB 0.08 in the same period in 2023[118] - Total non-current assets as of June 30, 2024, were RMB 13,594,493 thousand, slightly up from RMB 13,553,729 thousand as of December 31, 2023[119] - Total current assets as of June 30, 2024, were RMB 1,254,078 thousand, down from RMB 1,342,448 thousand as of December 31, 2023[119] - Bank balances and cash as of June 30, 2024, were RMB 517,321 thousand, down from RMB 624,280 thousand as of December 31, 2023[119] - Total assets decreased from RMB 13,206,344 thousand to RMB 12,605,370 thousand, a decline of 4.55%[120] - Current liabilities increased from RMB 1,689,833 thousand to RMB 2,243,201 thousand, a rise of 32.76%[120] - Bank borrowings under current liabilities surged from RMB 747,804 thousand to RMB 1,231,671 thousand, an increase of 64.71%[120] - Net current liabilities worsened from RMB (347,385) thousand to RMB (989,123) thousand, a significant deterioration[120] - Total equity slightly increased from RMB 10,186,812 thousand to RMB 10,268,237 thousand, a growth of 0.80%[120] - Share repurchases amounted to RMB 12,644 thousand[121] - Dividends declared totaled RMB 150,000 thousand[121] - Profit for the period was RMB 223,563 thousand[122] - Other comprehensive income for the period was RMB 221,728 thousand[122] - Total comprehensive income for the period was RMB 445,291 thousand[122] - Operating cash flow from operating activities increased to RMB 383,827 thousand, up 14% from RMB 336,824 thousand in the same period last year[123] - Net cash used in investing activities was RMB 41 thousand, a significant improvement from RMB -1,958,086 thousand in the previous year, driven by higher proceeds from the sale of financial assets at fair value (RMB 619,229 thousand)[123] - Net cash used in financing activities was RMB -380,126 thousand, compared to net cash generated of RMB 1,057,508 thousand in the prior year, primarily due to higher repayments of bank borrowings (RMB 1,526,097 thousand)[124] - Cash and cash equivalents increased by RMB 3,742 thousand, compared to a decrease of RMB -563,754 thousand in the same period last year[124] - The company repaid 62% of its USD syndicated loan principal, reflecting a strategic shift in its global investment strategy[125] - As of June 30, 2024, the company had unused bank financing of approximately RMB 419,659 thousand and secured additional bank financing of RMB 356,340 thousand post-June 30, 2024[127] - The company received a commitment letter for USD 150 million in financing from a bank acting as the lead arranger and bookrunner[127] - The company's functional currency was changed from USD to RMB effective January 1, 2024, to better reflect its economic environment and financing sources[125] - Revenue from external customers in Greater China reached RMB 1,137,636 thousand, while overseas revenue was RMB 306,120 thousand, totaling RMB 1,443,756 thousand for the six months ended June 30, 2024[132] - Segment profit for Greater China was RMB 345,660 thousand, and overseas segment profit was RMB 8,717 thousand, resulting in a total segment profit of RMB 354,377 thousand[133] - Pre-tax profit for the six months ended June 30, 2024, was RMB 265,756 thousand[134] - Revenue from assisted reproductive and related services was RMB 778,072 thousand, management services contributed RMB 287,371 thousand, and other medical services (including gynecology and pediatrics) generated RMB 201,655 thousand[136] - Non-current assets in Greater China were RMB 9,153,241 thousand, while overseas non-current assets were RMB 4,113,106 thousand as of June 30, 2024[137] - Revenue from Huntington Reproductive Center Medical Group (HRC Medical) accounted for RMB 237,925 thousand, representing over 10% of the company's total sales[138] - Other income, including interest from time deposits and banks, government subsidies, and other sources, totaled RMB 26,529 thousand for the six months ended June 30, 2024[139] - Net other gains and losses amounted to a loss of RMB 3,808 thousand, primarily due to foreign exchange losses of RMB 5,883 thousand[140] - Total interest expenses, including bank loans, convertible bonds, and lease liabilities, were RMB 28,526 thousand for the six months ended June 30, 2024[141] - Pre-tax profit for the six months ended June 30, 2024, reached RMB 385,601 thousand, compared to RMB 348,259 thousand in the same period in 2023, reflecting a 10.7% increase[142] - Income tax expense for the six months ended June 30, 2024, was RMB 75,443 thousand, up from RMB 54,734 thousand in the same period in 2023, a 37.8% increase[143] - The company recommended a final cash dividend of 5.95 HK cents per ordinary share for the year ended December 31, 2023, totaling RMB 150,000,000[145] - Basic earnings per share for the six months ended June 30, 2024, were RMB 189,682 thousand, down from RMB 223,563 thousand in the same period in 2023, a 15.2% decrease[146] - The weighted average number of shares for basic earnings per share was 2,685,475,449 for the six months ended June 30, 2024, compared to 2,668,504,206 in the same period in 2023[147] - The company invested approximately RMB 67,056,000 in property, plant, and equipment during the six months ended June 30, 2024, compared to RMB 95,859,000 in the same period in 2023[149] - Accounts receivable as of June 30, 2024, stood at RMB 169,997 thousand, a significant increase from RMB 73,086 thousand as of December 31, 2023[150] - Other receivables and prepayments totaled RMB 509,700 thousand as of June 30, 2024, up from RMB 382,396 thousand as of December 31, 2023[150] - Accounts receivable from related parties decreased to RMB 94.234 million as of June 30, 2024, compared to RMB 212.159 million as of December 31, 2023[155] - The aging analysis of trade-related receivables from related parties shows RMB 56.293 million within 90 days, RMB 20.983 million between 91-180 days, and RMB 16.958 million over 180 days as of June 30, 2024[162] - Total accounts receivable increased to RMB 169.997 million as of June 30, 2024, from RMB 73.086 million as of December 31, 2023, with RMB 122.623 million within 90 days[153] - Non-trade receivables from related parties remained stable at RMB 30.148 million as of June 30, 2024, compared to RMB 29.896 million as of December 31, 2023[156] - The company's liquidity analysis of receivables from related parties shows RMB 96.014 million as current and RMB 28.368 million as non-current as of June 30, 2024[159] - Payables to related parties increased to RMB 23.483 million as of June 30, 2024, from RMB 12.264 million as of December 31, 2023[163] - The company has a receivable of RMB 132.188 million from Jinxin Aijie International Hospital Management Co., Ltd., which is considered as a prepayment for future equity investment[151] - The company's directors at Shenzhen Zhongshan Hospital are entitled to a total salary of HKD 43.3 million (approximately RMB 39.52 million) for the period from December 1, 2022, to November 30, 2025[151] - The company has an interest-free loan receivable of USD 3.07 million (approximately RMB 21.876 million) from a shareholder of an associate company, expected to be recovered by 2026[151] - The company's IVF centers in Chengdu, Shenzhen, Wuhan, and Hong Kong primarily receive payments from individual clients through cash, credit cards, debit cards, or government social security plans, with government payments typically settled within 30-90 days after the transaction date[151] - Accounts payable increased to RMB 257.09 million as of June 30, 2024, up from RMB 231.29 million as of December 31, 2023[166] - Other payables decreased to RMB 609.63 million as of June 30, 2024, compared to RMB 653.23 million as of December 31, 2023[166] - Total bank borrowings decreased to RMB 2.03 billion as of June 30, 2024, down from RMB 2.13 billion as of December 31, 2023[169] - New loans added during the period amounted to RMB 1.42 billion, while repayments totaled RMB 1.53 billion, including RMB 1.35 billion in early repayments of syndicated loans[170] - Deferred tax liabilities increased to RMB 1.22 billion as of June 30, 2024, compared to RMB 1.21 billion as of December 31, 2023[172] - Deferred tax assets increased to RMB 125.28 million as of June 30, 2024, up from RMB 121.07 million as of December 31, 2023[172] - Accounts payable aged over 365 days increased to RMB 18.57 million as of June 30, 2024, compared to RMB 12.36 million as of December 31, 2023[169] - The company's syndicated loan of USD 300 million (approximately RMB 2.07 billion) has an outstanding amount to be repaid in installments starting 36 months after the utilization date[170] - The interest rates on the company's borrowings ranged from 2.5% to 7.3% as of June 30, 2024, with repayment periods extending to 2030[170] - The company issued 175,000,000 ordinary shares at a price of HKD 6.725 per share through a private placement arrangement during the year ended December 31, 2023, with proceeds of USD 1,750 (approximately RMB 12,000) allocated to share capital and the remaining RMB 998,972,000 (after deducting transaction costs) allocated to the share premium account[173] - The company issued 29,060,994 ordinary shares to Jinxin 2nd ESOP Limited (the nominee of the second restricted share unit plan) during the period[174] - The company issued 36,792,247 ordinary shares to the nominee of the second restricted share unit plan during the interim period[174] - The company terminated the share option plan during the interim period, with no further options to be granted under the plan[175] - The company terminated the 2019 restricted share unit plan during the interim period, but previously granted awards under the plan remain fully effective[176] - The company approved a new restricted share unit plan (2022 plan) on February 17, 2022, with a maximum of 75,227,514 shares (approximately 3% of the issued share capital as of the adoption date) allowed to be granted under the plan[177] - The company issued 32,981,388 shares to the nominee of the first restricted share unit plan on February 15, 2019, with 4,688,338 shares held by the nominee as of June 30, 2024[178] - The company issued 29,060,994 shares and 36,792,247 shares to the nominee of the second restricted share unit plan on February 15, 2023, and March 22, 2024, respectively, with 68,853,241 shares held by the nominee as of June 30, 2024[179] - The company recognized total expenses of RMB 37,115,000 for restricted share units granted during the six months ended June 30, 2024 (2023: RMB 6,370,000)[179] - The company has not made any significant provisions for pending legal claims and disputes, as the potential outflow amount cannot be reliably determined before judicial assessment[180] - Capital commitments for property, plant, and equipment increased to RMB 232,294 thousand as of June 30, 2024, up from RMB 97,908 thousand as of December 31, 2023[181] - The fair value of financial assets measured at fair value through profit or loss was RMB 51,938 thousand as of June 30, 2024, compared to RMB 141,569 thousand as of December 31, 2023[185] - The fair value of other financial assets measured at fair value through profit or loss remained unchanged at RMB 80,000 thousand as of June 30, 2024 and December 31, 2023[185] - The fair value of preferred shares measured at fair value through profit or loss was RMB 7,052 thousand as of June 30, 2024, unchanged from December 31, 2023[185] - The company purchased additional preferred shares worth RMB 80,000 thousand during the period, leading to a total fair value of RMB 87,052 thousand as of June 30, 2024[186] - The company provided management services to related parties, with no transactions recorded in 2024 compared to RMB 38,442 thousand in 2023[188] - Sales of pharmaceuticals, consumables, and equipment to related parties were nil in 2024, down from RMB 26,321 thousand in 2023[188] - Marketing expenses with an associate company decreased to RMB 14,378 thousand in 2024 from RMB 19,458 thousand in 2023[188] - Revenue from pathology services provided by the group to Chengdu Jinxin Investment and its affiliates decreased to RMB 2,082 thousand in 2024 from RMB 2,233 thousand in 2023[190] - Revenue from sales of drugs, consumables, and equipment to Chengdu Jinxin Investment and its affiliates increased to RMB 8,964 thousand in 2024 from RMB 6,503 thousand in 2023[190] - Management service revenue from HRC Medical and its affiliates increased to RMB 218,562 thousand in 2024 from RMB 207,776 thousand in 2023[190] - Pre-implantation genetic screening revenue from HRC Medical and its affiliates increased to RMB 16,965 thousand
锦欣生殖(01951) - 2024 - 中期财报