Financial Performance - New Horizon Health reported a revenue of HKD 150 million for the first half of 2023, representing a 25% increase compared to the same period in 2022[1]. - The company has set a performance guidance of HKD 350 million in revenue for the full year 2023, representing a 20% year-over-year growth[1]. - For the six months ended June 30, 2023, revenue was RMB 822.7 million, an increase of 264.6% compared to RMB 225.7 million for the same period in 2022[19]. - The company reported a net loss of HKD 10 million for the first half of 2023, an improvement from a loss of HKD 15 million in the same period last year[1]. - Adjusted net profit for the six months was RMB 61.3 million, a significant improvement from an adjusted net loss of RMB 106.2 million in the same period last year[19]. - The company reported a net profit of RMB 125,343 thousand for the six months ended June 30, 2023, compared to a net loss of RMB 65,282 thousand in the prior year[197]. - The total comprehensive income for the first half of 2023 was RMB 127,519 thousand, compared to a loss in the previous period, marking a turnaround in performance[200]. Gross Profit and Margins - The company achieved a gross profit margin of 65%, up from 60% in the previous year, indicating improved operational efficiency[1]. - Gross profit for the same period was RMB 747.5 million with a gross margin of 90.9%, up from RMB 185.1 million and 82.0% in the prior year[19]. - The gross margin improved to 90.9%, up approximately 890 basis points from 82.0% in the same period last year[56]. User Growth and Market Expansion - User data showed a 30% increase in the number of active users, reaching 200,000 by June 30, 2023[1]. - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share by the end of 2024[1]. - The company aims to increase market penetration of its products, including Changweiqing and Pupu Tube, leveraging its unique position as the only approved molecular cancer screening test in China[89]. Research and Development - Research and development expenses increased by 20% to HKD 30 million, reflecting the company's commitment to innovation[1]. - R&D expenses for the six months ended June 30, 2023, were RMB 63.6 million, a 61.4% increase from RMB 39.4 million in the same period of 2022[21]. - The company established a R&D center in Hong Kong in January 2023, focusing on cancer screening pipeline development[24]. - The company has established a strong R&D team, with over 73.0% of members holding master's or doctoral degrees, led by the Chief Scientific Officer and Chief Technology Officer[41]. Product Development and Launches - New product launches include the "宫证清 IVD" and "常卫清 IVD," which are expected to contribute an additional HKD 50 million in revenue in the next fiscal year[1]. - The flagship product, 常卫清, generated revenue of approximately RMB 490.5 million, a 566.2% increase from RMB 73.6 million year-over-year[21]. - The company has four self-developed cancer screening tests, with the latest, 宮证清, commercialized in Hong Kong in May 2023[45]. Strategic Partnerships and Acquisitions - The management emphasized a focus on strategic partnerships to drive growth and enhance customer engagement moving forward[1]. - New Horizon Health is exploring potential acquisitions to enhance its product portfolio and market reach, with a budget of HKD 100 million allocated for this purpose[1]. - The company has formed strategic partnerships with major players like AstraZeneca and Prenetics to enhance market penetration and awareness of colorectal cancer screening[45]. Financial Position and Cash Flow - Cash and cash equivalents as of June 30, 2023, were RMB 2,047.0 million, a 24.1% increase from RMB 1,648.9 million at the end of 2022[21]. - The company’s total liabilities increased to RMB 265,484 thousand from RMB 227,433 thousand, indicating a rise of 16.7%[198]. - The company’s total equity reached RMB 2,985,885 thousand as of June 30, 2023, compared to RMB 2,121,650 thousand at the end of 2022, reflecting a growth of about 41%[199]. Market Trends and Future Outlook - The colorectal cancer screening market in China is expected to grow significantly due to aging population and increased public awareness, with the company’s 常卫清 being the only test capable of detecting precancerous lesions[46]. - The company aims to advance technological innovation and accelerate the adoption of cancer screening technologies in China and globally[26]. - The company plans to enhance cancer screening awareness in China, targeting a 5-year survival rate of at least 46.6% by 2030[86]. Shareholder Information and Equity Incentives - The board has not declared an interim dividend for the six months ending June 30, 2023, consistent with the previous year[97]. - The maximum number of shares that can be delivered under the pre-IPO equity incentive plan is capped at 31,686,768 shares[117]. - The company has established a restricted share unit plan for 2022, which prohibits the board from granting any awards during specific blackout periods related to insider information and financial performance announcements[138].
诺辉健康(06606) - 2023 - 中期财报