Financial Performance - The Group achieved total revenue of RMB4,976 million, a decrease of 2.7% compared to RMB5,114 million in the corresponding period[16]. - Net profit attributable to shareholders increased to RMB434 million, up 9.0% from RMB398 million in the corresponding period[16]. - Earnings per share rose to RMB0.34, compared to RMB0.31 in the corresponding period, reflecting a growth of 9.7%[16]. - The gross profit of the hospital business segment was RMB 923 million, with a gross profit margin of 20.1%, and segment profit decreased by 11.6% to RMB 521 million[33]. - Revenue from outpatient visits was RMB 1.895 billion, reflecting a 1.7% increase, while revenue from inpatient visits was RMB 2.705 billion, down 6.1%[30]. - The hospital business segment recorded revenue of RMB 4.6 billion, a slight decrease of 3.0% year-over-year, with outpatient visits increasing by 3.5% and inpatient visits by 3.0%[36]. - The Group's net profit for the reporting period was RMB 512 million, representing a year-over-year increase of 5.1%[49]. - The Group's finance costs decreased to approximately RMB 39.84 million from RMB 61.15 million in the corresponding period, attributed to the replacement of foreign currency borrowings with RMB borrowings[45]. - The effective income tax rate for the Group's recurring business decreased to 18.4% from 22.1% in the corresponding period, with income tax amounting to approximately RMB 116 million, down 16.3% year-over-year[46]. - The Group's leverage ratio, calculated as interest-bearing debt to total assets, was 14.7% as of June 30, 2024, down from 15.8% on December 31, 2023[55]. Operational Highlights - Out-patient visits increased by 3.5% and in-patient visits grew by 3.0%, indicating a solid business foundation for self-owned hospitals[16]. - The utilization rate of beds in self-owned hospitals was 79.93% with 18,646 beds in operation[22]. - The Group managed a total of 127 medical institutions across 10 provinces and cities in China as of June 30, 2024[19]. - The revenue per outpatient visit and inpatient visit decreased by 2.0% and 8.8%, respectively, due to differences in medical insurance settlements[33]. Strategic Decisions - Huaiyin Hospital ceased operations on May 13, 2024, due to continuous operational losses and lack of business development opportunities[17]. - The decision to close Huaiyin Hospital is expected to minimize losses and control project risks for the Group in the long term[17]. - The impact of Huaiyin Hospital's closure on the Group's overall business development is considered relatively small[17]. - The Group plans to cease operations at Huaiyin Hospital effective May 13, 2024, due to ongoing losses and lack of business development opportunities[18]. Shareholder Information - An interim dividend of RMB 0.05 per share has been declared for the six months ended June 30, 2024, compared to no dividend in the corresponding period[65]. - The register of members will be closed from September 11 to September 12, 2024, for determining entitlement to the 2024 Interim Dividend[69]. - The 2024 Interim Dividend will be paid in HK$ on October 25, 2024, unless a currency election is made by shareholders[68]. Risk Management and Compliance - The Group's risk management and internal control systems are designed to protect assets and ensure compliance with laws and regulations[125]. - The Board has overall responsibility for maintaining effective risk management and internal control systems to ensure compliance with accounting standards and relevant laws[126]. - During the reporting period, the Board reviewed the efficiency of the Group's risk management and internal control systems across financial, operational, compliance, and risk management aspects[127]. - The Board will continue to optimize risk management and internal control systems in line with the Group's business development[127]. Connected Transactions - The Company entered into a strategic cooperation agreement with CR Bank and CR Trust for a term from January 1, 2023, to December 31, 2025, with annual caps renewed[85][86]. - The agreements and transactions constitute continuing connected transactions under Chapter 14A of the Listing Rules[91][93]. - The Company aims to improve efficiency and reduce costs in supply management of medical supplies through the established agreements[96][97]. - The Company signed a Supply Chain Management Services Framework Agreement with CR Health on February 8, 2024, with annual caps of RMB65 million for 2024 and RMB100 million for 2025[98]. Employee Information - The total staff costs for the reporting period were approximately RMB 1.704 billion, compared to RMB 1.667 billion in the corresponding period[60]. - The Group had a total of 19,640 full-time employees as of June 30, 2024, a decrease from 20,172 employees on December 31, 2023[60]. Legal Matters - The Beijing High People's Court ruled that Yan Hua Phoenix must pay damages of RMB 14,400,000 for breaching the Yan Hua IOT Agreement[135]. - The Company received the liquidated damages of RMB 14,400,000 through court enforcement procedures in April 2022[135]. - The Company is currently pursuing a separate lawsuit against the Yanhua Parties for additional compensation due to their breach of the Yan Hua IOT Agreement[135].
华润医疗(01515) - 2024 - 中期财报