何氏眼科(301103) - 2024 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions The board and supervisors confirm the report's accuracy, with no cash dividends or bonus shares planned for the half-year - The company's board of directors, supervisory board, and senior management ensure the truthfulness, accuracy, and completeness of the report, assuming legal responsibility; all directors attended the board meeting to review this semi-annual report[2] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the 2024 half-year period[2] Company Profile and Key Financial Indicators This section presents the company's basic information, key financial performance, and non-recurring gains and losses Company Basic Information This section provides the company's basic business registration information, including stock abbreviation 'He Eye Specialist', stock code '301103', listing exchange, and legal representative Company Basic Information | Item | Content | | :--- | :--- | | Stock Abbreviation | He Eye Specialist | | Stock Code | 301103 | | Listing Exchange | Shenzhen Stock Exchange | | Company Chinese Name | Liaoning He Eye Specialist Hospital Group Co., Ltd. | | Legal Representative | He Wei | Key Accounting Data and Financial Indicators During the reporting period, the company's performance significantly declined, with operating revenue at RMB 585 million, a 5.84% year-on-year decrease, and net profit attributable to shareholders at RMB 24.06 million, a 69.29% year-on-year decrease Key Accounting Data and Financial Indicators | Indicator | Current Period | Prior Year Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 584,757,474.76 | 620,995,594.44 | -5.84% | | Net Profit Attributable to Shareholders (RMB) | 24,063,967.54 | 78,347,857.61 | -69.29% | | Net Profit Attributable to Shareholders Excluding Non-Recurring Items (RMB) | 24,356,076.26 | 74,360,395.21 | -67.25% | | Net Cash Flow from Operating Activities (RMB) | 99,776,720.00 | 111,264,837.73 | -10.33% | | Basic Earnings Per Share (RMB/share) | 0.1535 | 0.4958 | -69.04% | | Weighted Average Return on Net Assets | 1.17% | 3.58% | -2.41% | | Indicator | Current Period End | Prior Year End | Year-on-Year Change | | Total Assets (RMB) | 2,417,992,248.54 | 2,483,695,372.45 | -2.65% | | Net Assets Attributable to Shareholders (RMB) | 2,036,002,056.42 | 2,075,313,837.01 | -1.89% | Non-Recurring Gains and Losses During the reporting period, the company's total non-recurring gains and losses amounted to RMB -0.29 million, primarily comprising RMB 1.59 million in government grants and RMB -1.96 million in other non-operating income and expenses Non-Recurring Gains and Losses Items | Item | Amount (RMB) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | 25,105.48 | | Government Grants Included in Current Profit/Loss | 1,585,802.86 | | Other Non-Operating Income and Expenses Apart from the Above | -1,964,820.81 | | Less: Income Tax Impact | -65,157.91 | | Minority Interests Impact (After Tax) | 3,354.16 | | Total | -292,108.72 | Management Discussion and Analysis This section provides an overview of the company's operations, core competencies, financial performance, investment activities, and key risks Company Business and Operations Overview In the first half of 2024, the company focused on strengthening brand building, optimizing industrial layout, and increasing technological innovation investments amidst declining consumer demand and intensifying market competition, while advancing digital transformation to enhance service efficiency - The company is a group-based service institution integrating medical, educational, and research functions, adopting a three-tier eye health service model focused on lifelong eye health management, with 123 eye care service institutions as of the reporting period end[26] - Key business development focuses include optimizing traditional business structure towards high-value consumer medical projects, expanding optometry services primarily within Liaoning province, and advancing digital transformation through 'Digital Bright City' initiatives for online services, big data, and smart equipment upgrades[27] - The company employs a three-tier eye health service model, integrated with centralized procurement and group control management, continuously optimizing its operating model through digital transformation, including developing an 'Healthcare + Internet' OMO model and enhancing digital marketing[29][32][34] Core Competitiveness Analysis The company's core competitiveness stems from its unique three-tier eye health service model, pioneering advantages in gene therapy, integrated medical-educational-industrial-academic-research platform, digital transformation, strong R&D conversion capabilities, and established brand reputation through social welfare and academic activities - Three-tier eye health medical service advantage: Established a replicable standardized ophthalmology chain process, extending this model nationwide through internet hospitals and big data platforms[37] - Technology and innovation advantage: Leveraging Hainan Boao Lecheng pilot zone policies to conduct internationally advanced gene therapy and drug clinical applications, while digital transformation enhances personalized and precise diagnosis and treatment[38][41] - Research and talent advantage: Actively conducting clinical application research based on national-level platforms, with 11 papers published in the first half of 2024, and collaborating with multiple universities to cultivate master's and doctoral students, ensuring high-quality talent supply[42][45][46] - Brand and human resource advantage: Brand reputation steadily improved through international academic conferences and public welfare activities; the company has 70 national and provincial/municipal society members and a comprehensive talent development system[43][44][46] Main Business Analysis During the reporting period, the company's main business revenues generally declined, with cataract and other eye disease treatment services seeing significant drops of 16.04% and 19.54% respectively, while non-surgical treatment was the only segment to grow by 7.23% Main Business Revenue and Gross Margin by Segment | By Product or Service | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Refractive Surgery Correction Services | 131,073,193.44 | 66,311,668.54 | 49.41% | -5.29% | -3.14% | -1.12% | | Cataract Treatment Services | 93,051,160.77 | 51,588,477.28 | 44.56% | -16.04% | -15.19% | -0.55% | | Vitreoretinal Treatment Services | 46,080,305.67 | 32,523,126.76 | 29.42% | -2.57% | 0.35% | -2.06% | | Other Eye Disease Treatment Services | 21,301,231.34 | 10,517,181.32 | 50.63% | -19.54% | -15.66% | -2.27% | | Non-Surgical Treatment | 111,488,060.37 | 77,355,421.78 | 30.62% | 7.23% | 11.57% | -2.70% | | Optometry Services | 178,183,802.68 | 99,128,790.37 | 44.37% | -6.75% | 1.71% | -4.62% | - The company's expenses generally increased, with sales and administrative expenses rising by 12.94% and 12.37% year-on-year respectively, while R&D investment grew by 35.69% due to an increase in research projects[48] Assets and Liabilities Analysis As of the reporting period end, total assets were RMB 2.42 billion, a 2.65% decrease from the prior year-end, with fixed assets increasing their proportion due to property acquisition, and RMB 1.45 million in restricted cash - Fixed assets increased by 2.44 percentage points compared to the prior year-end, primarily due to the acquisition of real estate by Dalian Advanced Branch Hospital[51] - As of the reporting period end, RMB 1.45 million in monetary funds had restricted use, mainly for e-commerce platform deposits and bank guarantees[52] Investment Analysis During the reporting period, the company had no significant equity or non-equity investments; of the RMB 1.16 billion IPO proceeds, RMB 455 million has been used, with RMB 725 million remaining, and some projects underperforming due to incubation, construction delays, or policy changes Raised Funds Utilization | Item | Amount (RMB Million) | | :--- | :--- | | Total Raised Funds | 1,164.31 | | Funds Invested in Current Period | 40.23 | | Total Funds Invested Cumulatively | 454.81 | | Unused Raised Funds Balance | 725.22 | - Some raised fund projects did not meet expected benefits due to: Beijing and Chongqing new hospital projects being in incubation and incurring personnel and brand building costs; Liaoning Ruimu Commercial New Project experiencing business delays due to central warehouse construction slowdown; and Hainan Cross-border E-commerce Project facing lower-than-expected international product sales due to stricter regulatory policies[57] Analysis of Major Holding and Participating Companies During the reporting period, Shenyang He Eye Specialist Hospital Co., Ltd. was the primary profit contributor, with other key subsidiaries also generating significant net profits, and recent subsidiary changes having no material impact on overall performance Net Profit Contribution from Major Subsidiaries | Company Name | Net Profit (RMB) | | :--- | :--- | | Shenyang He Eye Specialist Hospital Co., Ltd. | 46,705,137.16 | | Shenyang Ailuo Commercial Co., Ltd. | 19,032,286.82 | | Dalian He Eye Optometry Technology Co., Ltd. | 8,572,435.71 | | Huludao He Eye Specialist Hospital Co., Ltd. | 4,682,642.18 | | Anshan He Eye Specialist Hospital Co., Ltd. | 4,263,096.33 | | Dalian He Eye Specialist Hospital Co., Ltd. | 4,217,715.90 | - During the reporting period, the company established 6 new subsidiaries, including Youguang International Group (Hong Kong) Co., Ltd. and Hainan Dragonfly Health Technology Co., Ltd., and deregistered Shenzhen He Eye Specialist Clinic, with these changes having no significant impact on overall operations or performance[66] Risks and Countermeasures The company faces key risks including changes in industry regulatory policies, intensifying market competition, and potential talent loss or shortage, which it addresses by closely monitoring policies, strengthening competitive advantages, and improving human resource strategies - Industry regulatory policy change risk: The medical service industry is strictly regulated in market access and medical insurance settlement, and policy changes may adversely affect business development[67] - Market competition risk: As the number of private ophthalmology specialty hospitals increases, industry competition intensifies, and the company will face significant competitive pressure if it cannot maintain and strengthen its competitive advantages[69] - Talent loss and shortage risk: Excellent doctors and management teams are crucial for medical institution development, and talent loss or insufficient talent growth relative to business expansion will adversely affect the company's development[70] Corporate Governance This section details changes in the company's senior management and the termination of its equity incentive plan Changes in Directors, Supervisors, and Senior Management During the reporting period, Ms. Deng Ming ceased to be the CFO due to management restructuring but retains other roles, while Mr. He Yuehua was appointed as the new CFO Changes in Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Deng Ming | CFO | Dismissal | 2024年04月01日 | No longer serves as CFO due to company management needs and division of labor adjustment | | He Yuehua | CFO | Appointment | 2024年04月01日 | Board of Directors approved the appointment of Mr. He Yuehua as the company's CFO | Equity Incentive and Employee Stock Ownership During the reporting period, the company terminated its 2023 Restricted Stock Incentive Plan, invalidating all granted but unvested restricted shares, with no other employee incentive measures disclosed as ongoing - On April 1, 2024, the company's board and supervisory board approved a resolution to terminate the 2023 Restricted Stock Incentive Plan, rendering all remaining granted but unvested restricted shares void[75][76] Environmental and Social Responsibility (ESG) This section outlines the company's environmental protection measures and its active fulfillment of social responsibilities through various public welfare initiatives Environmental Protection The company and its subsidiaries are not designated as key polluting units and received no environmental administrative penalties during the reporting period, ensuring compliant treatment of wastewater, solid waste, and exhaust gas - The company and its subsidiaries are not classified as key polluting units and have no record of environmental administrative penalties during the reporting period[77] Social Responsibility During the reporting period, the company actively fulfilled its social responsibilities by focusing on eye health for the elderly and children, conducting nationwide charitable eye health services, leveraging technology for smart eye health management, and continuously training grassroots doctors to support rural revitalization - Care for the elderly and children: Conducted public welfare projects in multiple locations nationwide, such as establishing 'Myopia Prevention and Control Monitoring Stations' in schools and providing free eye health screenings and treatments for rural children and the elderly[79][80] - Technology + Public Welfare: Advancing the construction of 'Digital Bright City' by utilizing AI intelligent diagnosis and smart eye health management stations to bridge the 'last mile' of eye health management[82][83] - Training grassroots doctors: As a National Health Commission training base for blindness prevention and treatment, the company has cumulatively trained over 50,000 grassroots doctors and eye health management personnel, enhancing grassroots medical service levels[84] Significant Matters This section addresses the company's litigation status, administrative penalties received by subsidiaries, and the absence of significant related party transactions during the reporting period Litigation Matters During the reporting period, the company had no significant litigation or arbitration matters, with 7 minor lawsuits totaling RMB 0.54 million that are not expected to have a material impact - The company had no significant litigation or arbitration matters during this reporting period[87] Penalties and Rectifications During the reporting period, two subsidiaries received administrative penalties: Huludao He Eye Specialist Hospital was fined RMB 3,000 for unapproved medical advertising, and Yingkou He Eye Specialist Hospital was fined RMB 1,950 for unqualified personnel in the fire control room Administrative Penalties Received by Subsidiaries | Name/Entity | Reason | Conclusion (if any) | | :--- | :--- | :--- | | Huludao He Eye Specialist Hospital Co., Ltd. | Published medical advertisements without review | Fined RMB 3,000 | | Yingkou He Eye Specialist Hospital Co., Ltd. | Arranged unqualified personnel to be on duty in the fire control room | Fined RMB 1,950 | Significant Related Party Transactions During the reporting period, the company did not engage in significant related party transactions concerning daily operations, asset or equity acquisitions/disposals, and has already forecasted and disclosed its routine related party transactions for 2024 - The company had no significant related party transactions during the reporting period concerning daily operations, asset or equity acquisitions/disposals, joint external investments, or related party debts and credits[88][89][90][91] Share Changes and Shareholder Information This section details the company's share capital stability, the completion of its share repurchase program, and the composition of its shareholder base Share Changes and Repurchase During the reporting period, the company's total share capital remained unchanged at 158,026,471 shares, with 47.42% restricted and 52.58% unrestricted, and a share repurchase plan was completed, buying back 2,722,719 shares for RMB 67.50 million - The company's total share capital remained unchanged at 158,026,471 shares during the reporting period[99] - The company's share repurchase plan has been completed, with a cumulative repurchase of 2,722,719 shares, representing 1.72% of total share capital, at a total transaction amount of RMB 67.50 million[101] Shareholder Information As of the reporting period end, the company had 9,650 common shareholders, with controlling shareholders He Wei, He Xiangdong, and Fu Lifang (acting in concert) collectively holding 47.42% of shares, alongside other major institutional investors - As of the reporting period end, the total number of common shareholders was 9,650[102] Top Ten Shareholders | Shareholder Name | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | | He Wei | 19.19% | 30,327,379 | | He Xiangdong | 11.51% | 18,196,428 | | Fu Lifang | 7.68% | 12,130,951 | | Advanced Manufacturing Industry Investment Fund (Limited Partnership) | 6.74% | 10,651,667 | | Dalian Neusoft Holdings Co., Ltd. | 4.96% | 7,831,435 | | Shenyang Siasun Robot & Automation Co., Ltd. | 4.96% | 7,831,435 | - He Wei, He Xiangdong, and Fu Lifang are parties acting in concert, jointly serving as the company's controlling shareholders and actual controllers[102] Financial Report This section presents the company's unaudited consolidated and parent company financial statements, including detailed notes on key items, accounting policies, and related party transactions Financial Statements This chapter provides the company's unaudited 2024 semi-annual consolidated and parent company financial statements, showing a decline in revenue and profit, and a slight contraction in total assets during the reporting period Consolidated Balance Sheet As of the reporting period end, total assets were RMB 2.42 billion, total liabilities RMB 389 million, and equity attributable to parent company owners RMB 2.04 billion, with monetary funds being a significant asset component and lease liabilities a major liability Consolidated Balance Sheet Highlights | Major Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | | :--- | :--- | :--- | | Assets | | | | Monetary Funds | 1,553,742,795.39 | 1,588,531,430.39 | | Fixed Assets | 263,852,887.53 | 210,440,134.44 | | Total Assets | 2,417,992,248.54 | 2,483,695,372.45 | | Liabilities | | | | Accounts Payable | 74,130,782.04 | 59,226,782.99 | | Lease Liabilities | 195,806,670.05 | 208,592,642.95 | | Total Liabilities | 388,684,298.40 | 411,355,038.30 | | Owners' Equity | | | | Total Owners' Equity Attributable to Parent Company | 2,036,002,056.42 | 2,075,313,837.01 | | Total Owners' Equity | 2,029,307,950.14 | 2,072,340,334.15 | Consolidated Income Statement In the first half of 2024, the company's total operating revenue was RMB 585 million, a 5.84% year-on-year decrease, leading to a significant 57.26% decline in operating profit to RMB 47.54 million, and a 69.29% drop in net profit attributable to parent company shareholders to RMB 24.06 million Consolidated Income Statement Highlights | Item | 2024 Half-Year (RMB) | 2023 Half-Year (RMB) | | :--- | :--- | :--- | | I. Total Operating Revenue | 584,757,474.76 | 620,995,594.44 | | II. Total Operating Costs | 537,327,702.87 | 511,996,840.09 | | Including: Operating Cost | 339,405,846.06 | 341,762,982.65 | | Selling Expenses | 88,130,582.43 | 78,031,673.84 | | Administrative Expenses | 108,177,561.58 | 96,268,350.59 | | Research and Development Expenses | 4,675,739.40 | 3,445,781.54 | | III. Operating Profit | 47,538,063.85 | 111,238,840.36 | | IV. Total Profit | 45,573,243.04 | 111,178,023.60 | | V. Net Profit | 20,343,364.12 | 76,652,128.97 | | Net Profit Attributable to Parent Company Shareholders | 24,063,967.54 | 78,347,857.61 | Consolidated Cash Flow Statement During the reporting period, net cash flow from operating activities was RMB 99.78 million, a 10.33% year-on-year decrease, with net cash outflows of RMB 45.50 million from investing and RMB 89.46 million from financing activities, resulting in a RMB 35.18 million net decrease in cash and cash equivalents Consolidated Cash Flow Statement Highlights | Item | 2024 Half-Year (RMB) | 2023 Half-Year (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 99,776,720.00 | 111,264,837.73 | | Net Cash Flow from Investing Activities | -45,499,710.14 | -59,617,152.38 | | Net Cash Flow from Financing Activities | -89,456,319.15 | -185,218,354.78 | | Net Increase/Decrease in Cash and Cash Equivalents | -35,179,111.85 | -133,519,405.05 | | Cash and Cash Equivalents at Period End | 1,552,289,860.85 | 1,504,506,028.67 | Company Basic Information and Accounting Policies This chapter details the company's history, registration, business scope, and outlines the basis for financial statement preparation, adherence to accounting standards, and significant accounting policies and estimates, providing a foundational framework for understanding financial data - The company prepares its financial statements on a going concern basis, adhering to enterprise accounting standards, with the functional currency being RMB[143][144][149] - Revenue recognition policy: Diagnosis and treatment service revenue is recognized when services are provided and fees are collected; optometry service revenue is recognized after providing fitting services and receiving payment or obtaining the right to receive payment[238][241] - Impairment of financial instruments adopts the expected credit loss model, measuring loss provisions for accounts receivable and similar items based on expected credit losses over their entire lifetime[177] Notes to Consolidated Financial Statement Items This chapter provides detailed notes on major consolidated financial statement items, including accounts receivable, other receivables, and inventory balances with their respective impairment provisions, as well as fixed assets, construction in progress, and key expense components like employee compensation Selected Asset Balances and Provisions | Item | Period-End Balance (RMB) | Bad Debt/Impairment Provision (RMB) | | :--- | :--- | :--- | | Accounts Receivable | 62,710,249.73 | 4,042,879.44 | | Other Receivables | 11,881,841.51 | 4,940,749.51 | | Inventory | 97,506,092.13 | 11,608,680.77 | Key Operating Expenses | Expense Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Administrative Expenses | 108,177,561.58 | 96,268,350.59 | | Selling Expenses | 88,130,582.43 | 78,031,673.84 | | Research and Development Expenses | 4,675,739.40 | 3,445,781.54 | Related Parties and Related Party Transactions The company's controlling shareholders and actual controllers are He Wei, He Xiangdong, and Fu Lifang, who as parties acting in concert, jointly control 47.42% of the company's shares, with related party transactions including purchases of goods and services totaling RMB 14.97 million and property leases - The company's controlling shareholders and actual controllers are He Wei, He Xiangdong, and Fu Lifang, who are parties acting in concert, collectively controlling 47.42% of the company's shares[355] Major Related Party Transactions (Purchases) | Related Party | Related Transaction Content | Current Period Amount (RMB) | | :--- | :--- | :--- | | Shenyang Ailuo Medical Supplies Co., Ltd. | Purchase of Goods and Acceptance of Services | 11,735,990.00 | | Shenyang Ailuo Intelligent Technology Co., Ltd. | Purchase of Goods and Acceptance of Services | 2,236,743.00 | | Shenyang Pacific Medical Supplies Manufacturing Co., Ltd. | Purchase of Goods | 592,915.00 | - The company leases properties and equipment from related parties for office, operational, and production purposes, recognizing corresponding lease expenses[363]