Internet Hospital Platform - As of December 31, 2023, the Ningbo Cloud Hospital platform has integrated 45 internet hospitals, with 16,000 doctors and 11,000 nurses (with over 5 years of clinical experience), serving over 1.5 million internet medical service users and over 50,000 home care users[15] - The Jiangsu Province internet hospital platform has integrated 159 hospitals, with 52,000 doctors, and has provided services to over 780,000 users[15] - Home care service volume exceeded 150,000 visits, representing a 185.9% increase year-over-year, with Zhejiang province accounting for over 120,000 visits, up 295.6% from the previous year[23] - Revenue from the internet medical services segment increased by 14.3% from RMB 137.8 million in 2022 to RMB 157.6 million in 2023, driven by a 279.2% growth in home care services and a 30.3% increase in telemedicine services[47] Financial Performance - Revenue from health management services reached RMB 245.9 million, a 17.6% increase from RMB 209.2 million in the same period last year[28] - Revenue from smart healthcare products decreased by 83.3% to RMB 36.5 million, down from RMB 218.0 million, primarily due to a reduction in project deliveries[30] - Revenue from cloud hospital platform services fell by 20.1% to RMB 97.8 million, down from RMB 122.4 million, attributed to reduced project opportunities in the post-pandemic era[32] - Sales and service costs decreased by 28.1% from RMB 519.0 million in 2022 to RMB 373.1 million in 2023, aligning with a reduction in revenue from smart medical health products and cloud hospital platform services[48] - Income tax expenses rose by 46.5% from RMB 5.0 million in 2022 to RMB 7.3 million in 2023, attributed to an increase in profitable subsidiaries and their earnings scale[51] - The net loss for the reporting period decreased by 36.3% from RMB 243.3 million in 2022 to RMB 154.9 million in 2023[52] - The adjusted net loss (non-HKFRS measure) for the year was RMB 115.4 million, compared to RMB 146.9 million in 2022[54] Capital and Investments - The company raised approximately HKD 554.5 million from the global offering, net of underwriting commissions and other expenses, after listing on the main board of the Stock Exchange on September 28, 2023[12] - The company plans to allocate approximately 25% of net proceeds for enhancing product offerings across the industry value chain[36] - Approximately 30% of net proceeds will be used to expand the cloud hospital platform to increase the medical network and user base[39] - The company has not used any net proceeds from the global offering as of the reporting date[38] Related Party Transactions - For the fiscal year ending December 31, 2023, the transaction cap under the IT cooperation framework agreement is set at RMB 15 million for payments from Neusoft Group to the company and RMB 16 million for payments from the company to Neusoft Group[6] - The actual transaction amounts for the fiscal year ending December 31, 2023, are RMB 4.2 million from Neusoft Group to the company and RMB 7.8 million from the company to Neusoft Group[5] - The company has committed to ensuring that pricing terms with related parties are not less favorable than those offered to independent third parties[4] - The independent non-executive directors confirmed that the related party transactions during the reporting period were conducted in the ordinary course of business and on normal commercial terms[7] - The auditor confirmed that the disclosed related party transactions were approved by the board and complied with the company's pricing policy[8] - The company has renewed the IT cooperation framework agreement with Neusoft Group, effective from January 1, 2024, to December 31, 2024[6] Employee and Governance - The total number of employees is 962, with 38.5% in health management, 31.0% in sales and marketing, and 16.1% in management and administration[81] - The company paid employee compensation and benefits amounting to RMB 193.5 million for the year, a decrease from RMB 223.5 million in 2022[128] - 55.2% of the company's 962 employees hold a bachelor's degree or higher, totaling 531 employees[128] - The company has established a governance framework that is detailed in the corporate governance report section of the annual report[126] - The company has received annual confirmations of independence from all independent non-executive directors[94] Stock Options and Equity Structure - The company has a stock option plan that allows for the issuance of up to 10% of the total shares under the plan to special participants who have made significant contributions[110] - The stock options granted under the plan have a validity period of 10 years from the grant date[116] - The board will review and decide annually on the granting of stock options based on the company's performance[112] - The total number of shares that may be issued upon the exercise of all stock options under the post-IPO plan is capped at approximately 10% of the total issued shares as of the report date, equating to 84,187,680 shares[158] - The company is actively managing its equity structure to support future growth and align with market practices[136] Regulatory and Compliance - The company is subject to the Securities and Futures Ordinance regulations since its listing on September 28, 2023[129] - Foreign investors are restricted from holding more than 70% equity in "medical institutions" established after April 10, 2015, under Chinese law[190] - The company has established a structure for effective control over its medical and information services through contractual arrangements[192] - The exclusive management consulting and business cooperation agreements were signed on May 18, 2021, allowing the foreign-invested enterprise to provide management consulting services[196] - The domestic holding companies agree to pay all total revenues (after deducting costs, expenses, and taxes) as service fees to the foreign-invested enterprise[197]
东软熙康(09686) - 2023 - 年度财报