Financial Performance - Revenue for the six months ended June 30, 2024, decreased by 0.3% to RMB 984.5 million compared to RMB 987.5 million for the same period in 2023[1] - The company reported a loss of RMB 24.7 million for the current period, contrasting with a profit of RMB 29.4 million in the same period last year[1] - Loss attributable to owners of the company was RMB 19.5 million, compared to a profit of RMB 50.7 million in the previous year[1] - Adjusted EBITDA decreased by 29.3% to RMB 91.3 million from RMB 129.2 million year-on-year[1] - Basic and diluted loss per share was RMB 5.8 cents, compared to earnings of RMB 15.1 cents per share in the prior period[2] - The total revenue for the six months ended June 30, 2024, was RMB 984.5 million, a slight decrease of 0.1% compared to RMB 987.5 million for the same period in 2023[9] - The group recorded a consolidated loss of RMB 24.7 million, compared to a profit of RMB 29.4 million in the same period last year[45] - Total gross profit decreased to RMB 146.4 million, down 14.4% from RMB 171.0 million, with a gross margin of 14.9% compared to 17.3% in the previous period[76] Revenue Breakdown - Inpatient medical services generated revenue of RMB 522.8 million, down 4.5% from RMB 547.4 million in the previous year[9] - Outpatient medical services revenue increased to RMB 319.3 million, up 2.8% from RMB 312.4 million year-on-year[9] - Revenue from blood dialysis services was RMB 37.1 million, with no prior year comparison available[9] - Revenue from elderly medical services increased to RMB 7.0 million, up 18.6% from RMB 5.9 million in the previous year[9] - The hospital services segment generated revenue of RMB 880.8 million, down 4.4% from RMB 920.9 million in the same period last year[45] - The rehabilitation and related medical services segment recorded revenue of RMB 59.7 million, a decrease of 1.7% compared to RMB 60.7 million in the same period last year[46] - Revenue from special services totaled RMB 79.5 million, representing a decrease of 13.2% compared to RMB 91.6 million in the previous year[55] - Revenue from VIP medical services decreased by 12.4% to RMB 53.5 million, down from RMB 61.0 million in the same period last year[56] Assets and Liabilities - Non-current assets totaled RMB 1,691.9 million as of June 30, 2024, up from RMB 1,529.5 million at the end of 2023[3] - Current assets decreased to RMB 960.8 million from RMB 1,095.5 million at the end of 2023[3] - Total liabilities increased slightly to RMB 772.7 million from RMB 766.7 million at the end of 2023[3] - Accounts receivable increased to RMB 327,597 thousand as of June 30, 2024, from RMB 269,745 thousand as of December 31, 2023[26] - The total amount of accounts receivable and other receivables reached RMB 354,956 thousand as of June 30, 2024, compared to RMB 302,278 thousand as of December 31, 2023[26] - As of June 30, 2024, accounts payable amounted to RMB 366,803,000, an increase of 15.6% from RMB 317,263,000 as of December 31, 2023[32] - The total amount of accounts payable and other payables, including provisions, reached RMB 689,425,000, up from RMB 660,322,000, reflecting a growth of 4.5%[32] Operational Highlights - The company operates four main business segments: hospital services, rehabilitation and other medical services, blood dialysis services, and elderly medical services[10] - The company operates three self-owned hospitals, including Dongguan Kanghua Hospital, recognized as one of the top private general hospitals in China[41] - The company has a total of 13 rehabilitation centers and a vocational training school, focusing on providing special care services for patients with permanent or long-term disabilities[42] - The company is expanding its "large-scale healthcare" business model in response to the aging population in China[43] - The company aims to expand its quality rehabilitation services beyond Guangdong Province, enhancing its service offerings in other regions of China[42] Investments and Acquisitions - The company completed the acquisition of 70% of Kanghua Hemodialysis Group for RMB 7,700,000, with goodwill recognized amounting to RMB 114,224,000[38] - The company acquired properties, plants, and equipment totaling RMB 24,904,000 and incurred construction costs of RMB 29,188,000 to enhance hospital service capabilities and develop new medical facilities[23] - The company has established a fund for investment in healthcare services, biotechnology, and medical devices, with an initial capital of RMB 22,000,000 as of June 30, 2024[31] Cash Flow and Financing - The net cash flow from operating activities for the reporting period was RMB 48.8 million, a decrease of 22.0% compared to RMB 62.6 million for the same period last year, primarily due to worsened EBITDA and losses[98] - The net cash flow used in investing activities was RMB 49.8 million, with significant factors including a net loss of RMB 15.0 million from the acquisition of financial assets and a cash flow of RMB 6.1 million from the acquisition of Kanghua Hemodialysis Group[99] - The net cash flow used in financing activities amounted to RMB 198.1 million, mainly due to new bank loans of RMB 21.8 million and repayment of bank loans totaling RMB 283.4 million[100] - The company has implemented a cash management policy to invest in low-risk financial products to achieve higher interest income without affecting business operations or capital expenditures[102] Corporate Governance and Compliance - The company has adhered to all applicable corporate governance codes during the reporting period[120] - The audit committee has reviewed the interim results for the six months ending June 30, 2024, confirming compliance with applicable accounting standards[121] - The board of directors includes a mix of executive and independent non-executive directors, ensuring diverse oversight[123] - The company expresses gratitude to its management team and employees for their contributions during the reporting period[122]
康华医疗(03689) - 2024 - 中期业绩