Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 501.5 million, a decrease of 6.7% compared to RMB 537.7 million in 2023[4]. - Gross profit for the same period was RMB 147.5 million, down from RMB 164.6 million, resulting in a gross margin of 29.4%, a decline of 1.2 percentage points year-over-year[3]. - Net loss for the year improved to RMB 83.8 million, a 45.9% reduction from RMB 154.9 million in 2023[4]. - Adjusted net loss for the year was RMB 75.3 million, narrowing the loss by 34.8% year-on-year[13]. - Other income increased by 287.4% from RMB 4.2 million for the year ending December 31, 2023, to RMB 16.1 million for the year ending December 31, 2024, mainly due to increased investment income and government subsidies[48]. - The net loss for the reporting period decreased by 45.9% from RMB 154.9 million for the year ending December 31, 2023, to RMB 83.8 million for the year ending December 31, 2024[54]. - The company reported a significant increase in other income to RMB 16,100 thousand in 2024 from RMB 4,156 thousand in 2023, marking a growth of 287.5%[93]. - The total income tax expense for 2024 was RMB (82,000), compared to RMB 7,256,000 in 2023, indicating a significant reduction in tax liabilities[138]. Business Segments and Services - The company established three major business segments: medical services, nursing services, and health management services, enhancing its competitive business structure[8]. - Nursing service revenue increased by 77.7% year-on-year[13]. - Medical services revenue decreased by 3.1% from RMB 223.7 million in 2023 to RMB 216.7 million in 2024, attributed to a weak economic environment and increased market competition[22]. - Nursing services revenue increased by 77.7% from RMB 31.6 million in 2023 to RMB 56.2 million in 2024, driven by effective market promotion and operational efficiency improvements through digitalization and AI[22]. - Health management services revenue decreased by 19.0% from RMB 282.4 million in 2023 to RMB 228.7 million in 2024, due to intensified market competition and reduced corporate spending on employee health management[22]. - The company is focused on the "home-based medical and nursing services" strategy, aiming to meet the growing demand driven by an aging population and health consumption upgrades[5]. - The company continues to enhance its home nursing services, leveraging a comprehensive operational service system developed through years of practice[28]. - The company has expanded its home nursing service offerings to over 200 items, up from 90 items in the same period last year[13]. User Growth and Engagement - The number of medical institutions connected to the company's platform exceeded 36,000, with the number of registered doctors increasing by 9.3% and registered nurses rising by 89.2% year-over-year[6]. - Internet medical service volume grew by 20.8% year-over-year, while home nursing service volume surged by 114.9%[8]. - Internet medical service users exceeded 4.94 million, a year-on-year increase of 20%[19]. - Home nursing service users increased to over 332,000, a year-on-year increase of 114%[19]. - The number of registered doctors reached over 140,000, a year-on-year increase of 9%[13]. - The number of registered nurses with over 5 years of clinical experience reached 130,000, a year-on-year increase of 89%[13]. Operational Efficiency and Technology - The company aims to leverage AI and smart technology to improve operational efficiency and service precision, positioning itself as an industry innovator[8]. - The company is focusing on integrating AI technology into healthcare services, enhancing operational efficiency and user satisfaction[23]. - The company plans to use 25% of the net proceeds, amounting to HKD 138.6 million, to enhance its product offerings across the industry value chain[86]. - The company aims to leverage AI technology to enhance service efficiency and user experience, with AI-driven features such as intelligent recommendations and customer service already implemented[30]. - The company expects to utilize part of the proceeds from its global offering to meet its working capital needs[64]. Financial Position and Cash Flow - Operating net cash flow turned positive for the first time, with a net inflow of RMB 21.6 million[13]. - Cash and cash equivalents increased to RMB 760.9 million as of December 31, 2024, compared to RMB 676.8 million as of December 31, 2023[64]. - The company reported a net cash inflow from operating activities of RMB 21.6 million for the year ended December 31, 2024, compared to a net cash outflow of RMB 20.2 million for the previous year[66]. - The company had no significant contingent liabilities or major legal proceedings that could adversely affect its financial condition as of December 31, 2024[58]. - The company’s total borrowings amounted to RMB 509.9 million as of December 31, 2024, slightly up from RMB 509.4 million as of December 31, 2023[70]. Strategic Initiatives and Future Outlook - The company anticipates 2025 to be a strategic breakthrough year, emphasizing user needs and technological innovation to enhance brand value and market influence[10]. - Strategic partnerships with various provincial and municipal governments were formed to enhance the "Internet + Nursing Services" platform, improving resource utilization and service accessibility[9]. - The strategic focus includes expanding the urban cloud hospital model and enhancing home medical care services to ensure compliance, safety, and reliability[34]. - The company has implemented a "business focus strategy" to deepen market penetration and expand service types[23]. - The company is expanding its service offerings and optimizing business strategies to meet diverse user needs, thereby improving resource and service commercialization[23]. Employee and Organizational Structure - As of December 31, 2024, the company has a total of 855 full-time employees, with 41.0% in health management, 24.9% in sales and marketing, and 17.8% in R&D[80]. - The company has established a competitive and fair compensation policy, with total employee compensation expenses of RMB 166.1 million for the year ending December 31, 2024[80]. - Employee benefits expenses totaled RMB 174,640,000 in 2024, down from RMB 223,314,000 in 2023, reflecting a decrease of about 22%[129]. Compliance and Reporting - The financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards and presented in Renminbi, with all values rounded to the nearest thousand[100]. - The consolidated financial statements include the company and its subsidiaries for the year ending December 31, 2024, with control established through variable returns and power over the investee[101]. - The group has adopted revised Hong Kong Financial Reporting Standards for the current financial year, with no significant impact on financial position or performance[104].
东软熙康(09686) - 2024 - 年度业绩