Financial Performance - Total revenue for 2022 reached RMB 2,988.1 million, a year-on-year increase of 70.1%[5] - Gross profit increased by 39.0% to RMB 792.1 million in 2022[5] - Operating loss decreased by 15.0% to RMB 591.6 million in 2022[5] - Net loss for the year improved by 59.3% to RMB 1,692.2 million in 2022[5] - Adjusted net loss (non-IFRS) decreased by 25.0% to RMB 332.8 million in 2022[5] - Revenue from in-hospital solutions increased by 71.6% to RMB 2,184.5 million in 2022[6] - Revenue from pharmacy solutions grew by 76.0% to RMB 615.8 million in 2022[6] - Revenue from personal chronic disease management solutions rose by 40.1% to RMB 187.8 million in 2022[6] - Subscription solutions revenue increased by 31.5% to RMB 594.5 million in 2022[6] - Value-added solutions revenue surged by 88.4% to RMB 2,205.8 million in 2022[6] - Total revenue increased by 70% to RMB 2,988 million in 2022, driven by strong growth in hospital and pharmacy solutions[26] - Revenue from hospital solutions grew by 72% to RMB 2,184.5 million in 2022, primarily due to increased SaaS penetration and collaboration with pharmaceutical companies[26] - Revenue from pharmacy solutions rose by 76% to RMB 615.8 million in 2022, driven by increased paid pharmacies and enhanced supply chain capabilities[26] - Overall gross profit increased by 39% from RMB 570 million in 2021 to RMB 792 million in 2022, while overall gross margin decreased from 32.4% to 26.5% due to changes in revenue structure between high-margin and low-margin businesses[28] - In-hospital solutions gross margin decreased from 37.2% in 2021 to 31.3% in 2022, with subscription solutions revenue growing by 34%, slower than hospital value-added solutions[28] - Pharmacy solutions gross margin decreased from 17.8% in 2021 to 11.4% in 2022, driven by revenue structure changes between subscription and value-added solutions[29] - Sales and marketing expenses increased by 18% from RMB 787.3 million in 2021 to RMB 933.2 million in 2022, but the ratio to revenue decreased from 41.5% to 29.2%[30] - Administrative expenses increased by 24.5% from RMB 269.6 million in 2021 to RMB 335.6 million in 2022, with the ratio to revenue decreasing from 5.8% to 4.3%[31] - R&D expenses decreased from RMB 236.2 million in 2021 to RMB 114.8 million in 2022, with the ratio to revenue dropping from 11.5% to 3.7%[32] - Operating loss decreased by 15.0% from RMB 695.9 million in 2021 to RMB 591.6 million in 2022, driven by revenue growth and improved operating leverage[33] - Net loss decreased by 59.3% from RMB 4,153.2 million in 2021 to RMB 1,692.2 million in 2022, primarily due to revenue growth, operating leverage, and changes in fair value of financial liabilities[37] - Adjusted net loss (non-IFRS) decreased from RMB 444.0 million in 2021 to RMB 332.8 million in 2022, with the adjusted net loss ratio improving from 25.3% to 11.1%[38][39] - Revenue for 2022 increased to RMB 2,988,056 thousand, up 70.1% from RMB 1,756,731 thousand in 2021[183] - Gross profit for 2022 was RMB 792,100 thousand, a 38.9% increase from RMB 570,024 thousand in 2021[183] - Operating loss for 2022 improved to RMB 591,563 thousand, compared to RMB 695,911 thousand in 2021[183] - Net loss for 2022 was RMB 1,692,221 thousand, a significant improvement from RMB 4,153,193 thousand in 2021[183] - Total comprehensive loss for 2022 was RMB 2,158,772 thousand, compared to RMB 4,021,261 thousand in 2021[186] Business Segments and Solutions - Revenue from in-hospital solutions increased by 71.6% to RMB 2,184.5 million in 2022[6] - Revenue from pharmacy solutions grew by 76.0% to RMB 615.8 million in 2022[6] - Revenue from personal chronic disease management solutions rose by 40.1% to RMB 187.8 million in 2022[6] - Subscription solutions revenue increased by 31.5% to RMB 594.5 million in 2022[6] - Value-added solutions revenue surged by 88.4% to RMB 2,205.8 million in 2022[6] - The company's hospital SaaS system, Zhiyun Medical Hub, has been installed in 2,567 hospitals, including 714 tertiary public hospitals and 1,092 secondary public hospitals, as of December 31, 2022[11] - The number of paid customers for the hospital subscription solutions increased by 73% to 26, with a total of 34 SKUs, and the annual recurring revenue reached RMB 416.8 million, representing 103% of the previous year's revenue[11] - The number of hospitals purchasing value-added solutions directly or indirectly increased by 34% to 2,818, with an annual recurring revenue of RMB 971.1 million, representing 112% of the previous year's revenue[12] - The hospital solutions segment revenue increased by 71.6% to RMB 2,184.5 million, with subscription solutions revenue growing by 33.9% to RMB 539.4 million and value-added solutions revenue surging by 89.1% to RMB 1,645.1 million[13] - The gross margin for hospital solutions decreased by 5.9 percentage points to 31.3%, while subscription solutions gross margin improved by 1.5 percentage points to 88.6%[13] - The number of pharmacies deploying the company's pharmacy SaaS system, Zhiyun Consultation, reached 193,327, covering over 33% of pharmacies in China, with 90,801 paid customers using the subscription solutions[16] - The pharmacy solutions segment revenue increased by 76.0% to RMB 615.8 million, with value-added solutions revenue growing by 86.3% to RMB 560.7 million[17] - The gross margin for pharmacy solutions decreased by 6.4 percentage points to 11.4%, while subscription solutions gross margin remained high at 95.2%[17] - The number of transaction customers for pharmacy value-added solutions increased by 42.8% to 975, with average revenue per customer growing by 30.5% to RMB 575,000[18] - The company's personal chronic disease management solution has 98,700 registered doctors and 28.5 million registered users as of December 31, 2022[19] - Revenue from personal chronic disease management solutions and others increased by 40.1% to RMB 187.767 million in 2022[20] - Revenue from chronic disease products surged by 62.7% to RMB 86.264 million in 2022[20] - The number of online prescriptions issued reached 169.6 million in 2022, a 10.5% increase from 2021[21] Corporate Governance and Leadership - The company's shares were included in the Hang Seng Index on February 24, 2023, and in the Shenzhen-Hong Kong Stock Connect program on March 13, 2023[22] - The company conducted real-world research on 11.1 million online antihypertensive treatment prescriptions, revealing that about half of hypertension patients have comorbidities[23] - The company established a strategic partnership with Baidu's AI chatbot "Wenxin Yiyan" to enhance AI technology in healthcare management solutions[24] - Li Jiacong, aged 41, serves as a non-executive director and audit committee member, bringing over 15 years of experience in law and finance[86] - Dr. Hong Weili, aged 53, is an independent non-executive director with extensive experience in financial and investment sectors, including roles at Huaren Cultural Group and Noah Holdings[87] - Zhang Saiyin, aged 43, is an independent non-executive director with a strong background in finance, having served as CFO at MINISO Group and various roles at China Resources[88] - Ang Khai Meng, aged 62, is an independent non-executive director with 37 years of experience in the healthcare industry, including leadership roles at Roche and Medtronic[88] - Xu Lili, aged 41, has been the CFO since October 2020, with over 16 years of financial management experience, including roles at Tongdao Liepin Group and General Electric[91] - Wang Jingxu, aged 54, has been the Vice President of Hospital Business and Development since August 2018, with 30 years of experience in the life sciences and pharmaceutical industries[92] - Mr. Li Gang, aged 42, has been the head of the company's technology department since March 2016, responsible for product and technology R&D[93] - Ms. Zuo Yinghui, aged 47, has been the Vice President of Supply Chain and Customer Service since January 2015, overseeing supply chain management and business expansion[93] - Ms. Liu Mengya, aged 34, has been the Co-Company Secretary and Senior Financial Director since October 2020, managing investor relations and financial operations[94] - Ms. Feng Huisen, aged 40, is the Co-Company Secretary and Senior Manager of Corporate Services at Tricor Services Limited, with over 15 years of experience in corporate secretarial services[95] - Mr. Zhang Saiyin resigned as Executive Director, Executive Vice President, and CFO of MINISO Group Holding Limited on January 31, 2023[96] - The company has adopted the principles and code provisions of the Corporate Governance Code and has complied with applicable code provisions since its listing on July 6, 2022[131] - The Board of Directors consists of five members, including one executive director, one non-executive director, and three independent non-executive directors[133] - The Chairman and CEO roles are held by Mr. Kuang, who is also the founder of the group, ensuring consistent internal leadership and effective strategic planning[135] - The company has established a Board Independence Assessment Mechanism to ensure strong independence and effective exercise of independent judgment[137] - All directors are subject to retirement by rotation, with Mr. Kuang and Mr. Li eligible for re-election at the upcoming annual general meeting[138] - The Audit Committee reviewed the audited consolidated financial statements for the year ended December 31, 2022, and confirmed compliance with applicable accounting principles, standards, and regulations[143] - The Audit Committee held two meetings during the reporting period to review the interim financial results for the six months ended June 30, 2022, and discussed audit plans, risk management, and internal control systems[143] - The Remuneration Committee held one meeting to review the compensation policies and remuneration for directors and senior management, including share awards and restricted share units[144] - The Remuneration Committee's report shows that 3 senior management members received compensation exceeding RMB 10,000,001, while 1 member received between RMB 5,000,001 and RMB 10,000,000, and 1 member received up to RMB 5,000,000[145] - The Nomination Committee held one meeting to review the structure, size, and composition of the Board, as well as the independence of independent non-executive directors[146] - The Nomination Committee considers diversity, character, qualifications, experience, and independence when selecting and recommending suitable director candidates[146] - The Board established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with written terms of reference outlining their roles and responsibilities[142] - The Audit Committee met with external auditors once during the reporting period without the presence of executive directors[143] - The Board ensures that all directors have full and timely access to company information and can seek independent professional advice when necessary[139] - The Board retains decision-making authority over key matters, including policy, strategy, budget, internal control, risk management, and significant transactions[139] - The company aims to appoint at least one female director to the board by December 2023 to enhance gender diversity[148] - Female employees accounted for 48% of the total workforce as of December 31, 2022[149] - The company will implement policies to ensure gender diversity in recruitment and develop female senior management and board succession candidates[148] - The board will consider setting measurable targets for implementing the board diversity policy and review progress periodically[148] - The nomination committee will review the board diversity policy to ensure its effectiveness[148] - The company prohibits any form of harassment or discrimination based on race, color, age, gender, sexual orientation, gender identity, disability, pregnancy, religion, political affiliation, veteran status, or union membership[149] - The company ensures equal opportunities in recruitment, training, development, promotion, and compensation regardless of gender, age, race, disability, or region[149] - The nomination committee is responsible for ensuring board diversity and will recommend suitable candidates based on various criteria including gender, age, cultural and educational background, professional qualifications, skills, knowledge, and industry experience[147] - The board has reviewed the company's corporate governance policies, training, and compliance with legal and regulatory requirements during the reporting period[152] - The board held two meetings from the listing date on July 6, 2022, to December 31, 2022, and expects to hold at least four meetings annually in the future[153] - The company has implemented a comprehensive risk management policy covering financial reporting, information systems, internal controls, human resources, and investment management[155] - The Board of Directors is responsible for assessing and determining the nature and extent of risks the company is willing to accept, including significant environmental, social, and governance risks[155] - The internal audit department reviewed the internal control system and implemented relevant recommendations to ensure its adequacy and effectiveness[156] - The company has established a whistleblowing and anti-corruption policy to facilitate confidential reporting of misconduct and prevent corruption[157] - The company has adopted a dividend policy that considers factors such as operational performance, financial condition, and capital requirements[159] - The company paid RMB 4,500 thousand in audit fees to KPMG for the reporting period, with no non-audit services provided[162] - The company has a shareholder communication policy and maintains a website (www.cloudr.cn) to provide financial data, corporate governance practices, and other relevant information[165] - The Board of Directors reviewed the shareholder communication policy during the reporting period and ensured its effectiveness[165] Financial Position and Cash Flow - Cash and cash equivalents decreased to RMB 249.7 million as of December 31, 2022, from RMB 1,090.6 million as of December 31, 2021[41] - Financial assets measured at fair value amounted to RMB 423.5 million as of December 31, 2022, primarily for short-term and treasury management purposes[41] - Bank and other loans increased to RMB 192.5 million as of December 31, 2022, from RMB 114.4 million as of December 31, 2021, with an annual interest rate ranging from 3.8% to 5.8%[41] - The company's debt-to-asset ratio was 33.6% as of December 31, 2022, compared to 30.1% as of December 31, 2021[43] - Foreign exchange losses were RMB 459 thousand as of December 31, 2022, compared to RMB 153 thousand as of December 31, 2021[44] - Total employee-related costs were RMB 990.3 million for the year ended December 31, 2022, slightly up from RMB 986.4 million in the previous year[47] - Full-time employee costs decreased to RMB 610.2 million for the year ended December 31, 2022, from RMB 687.7 million in the previous year[47] - Flexible employee costs increased to RMB 380.1 million for the year ended December 31, 2022, from RMB 298.7 million in the previous year[47] - The company had 1,349 full-time employees as of December 31, 2022, with 1,146 in sales and marketing, 135 in R&D, and 68 in general and administrative roles[47] - The company operates primarily in China, with most transactions settled in RMB, and does not engage in significant foreign exchange hedging[44] - The company faces risks related to maintaining revenue growth, profitability, and commercializing solutions, as well as regulatory challenges and trust in its platform[52] - The company's consolidated affiliated entities contributed 2.9% of total revenue and 3.8% of total assets in the reporting period[55] - The company relies on contractual arrangements to control its consolidated affiliated entities, which may not be as effective as direct ownership[57] - Potential non-compliance with Chinese laws and regulations could result in severe penalties or loss of business interests[57] - The company's liquidity and ability to expand may be impacted by Chinese regulations on foreign loans and investments[58] - The company's contractual arrangements may be subject to scrutiny by Chinese tax authorities, potentially leading to additional tax liabilities[58] - The company's business operations could be affected by the Foreign Investment Law[58] - Bankruptcy or dissolution of consolidated affiliated entities could result in loss of critical assets[58] - The company has implemented measures to monitor and mitigate risks related to contractual arrangements, including regular board reviews and external legal consultations[58] - 91 Health Hangzhou and Hangzhou Kangming entered into an Exclusive Consulting Services Agreement on June 16, 2021, which was subsequently amended on October 11, 2021, granting 91 Health Hangzhou exclusive rights to provide various services including technical consulting, IT system support, and business development[59] - The Exclusive Consulting Services Agreement stipulates that Hangzhou Kangming must pay service fees to 91 Health Hangzhou, determined based on factors such as service complexity, time required, and market reference prices[59] - 91 Health Hangzhou holds exclusive intellectual property rights over all developments, whether created by Hangzhou Kangming or 91 Health Hangzhou, and Hangzhou Kangming
智云健康(09955) - 2022 - 年度财报