Financial Performance - Revenue for the year ended December 31, 2024, increased by 0.7% to RMB 2,055,670,000 compared to RMB 2,041,858,000 in 2023[10] - Gross profit decreased by 11.7% to RMB 321,873,000, with a gross profit margin of 15.7%, down from 17.8% in the previous year[10] - Profit before taxation fell by 58.9% to RMB 63,055,000, while profit for the year dropped by 88.5% to RMB 10,473,000[10] - Adjusted EBITDA decreased by 21.2% to RMB 229,636,000 from RMB 291,309,000 in 2023[10] - Basic earnings per share decreased by 87.3% to 4.6 RMB cents, down from 36.2 RMB cents in the previous year[10] - The Group recorded a consolidated profit of RMB10.5 million, a significant year-on-year decrease of 88.5% compared to RMB91.0 million last year[27] - Revenue from the Group's self-owned hospitals decreased by 2.6% to RMB1,838.5 million, down from RMB1,887.9 million in the previous year[28] - The Group's Adjusted EBITDA decreased by 21.2% to RMB229.6 million, down from RMB291.3 million in the previous year, indicating solid core operations despite external factors[40] - The Group's total gross profit was RMB 321.9 million, a year-on-year decrease of 11.7% from RMB 364.4 million, with the overall gross margin declining to 15.7% from 17.8%[190] Revenue Breakdown - Revenue from cardiovascular related disciplines was RMB 258,977,000 in 2024, compared to RMB 271,010,000 in 2023[15] - Revenue from the rehabilitation and other healthcare services segment recorded revenue of RMB 128.4 million in 2024, down 9.1% from RMB 141.2 million in 2023[129] - Revenue from elderly healthcare services amounted to RMB12.9 million, a year-on-year increase of 1.5%, accounting for 0.6% of total revenue[176] - Revenue from haemodialysis services amounted to RMB75.8 million, accounting for 3.7% of total revenue, as this segment was newly acquired in January 2024[175] - Revenue from physical examination services dropped significantly to RMB107.2 million, a decrease of 29.6% year-on-year, representing 5.2% of total revenue[170] - Revenue from VIP healthcare services fell to RMB 95.0 million in 2024, representing a year-on-year decrease of 4.9%[127] - Revenue from rehabilitation hospitals and other healthcare services decreased by 26.4% to RMB 54.4 million in 2024, down from RMB 73.9 million in 2023[136] Operational Metrics - The number of outpatient visits in 2024 was 63.1 thousand, compared to 74.3 thousand in 2023[14] - The total number of inpatient visits increased to 76,968, representing a year-on-year increase of 3.5%, while the average spending per inpatient visit decreased by 2.8% to RMB 14,114.3[90] - The total number of surgical operations increased to 53,871, representing a year-on-year increase of 12.0%[90] - The total number of outpatient visits decreased to 1,499,016, representing a year-on-year decrease of 2.0%, while average spending per outpatient visit increased by 0.4% to RMB 430.2[90] - The number of haemodialysis procedures performed in 2024 exceeded 118,000, up from 90,000 in 2023[60] - The average length of stay at the Renkang Nursing Home decreased to 113.2 days in 2024 from 118.2 days in 2023, with an average bed utilization rate of 91.0%[145] Strategic Initiatives - The company aims to navigate challenges in the healthcare industry through its strategy of "Precision healthcare, Efficient Management and Sincere Service"[17] - The Group plans to strengthen the development of key specialties and enhance high-end healthcare services to meet rising patient expectations[44] - Future strategies include standardizing medical insurance and enhancing infection control and nursing quality management[45] - The Group aims to achieve accreditation as a five-star elderly care institution for Renkang Elderly Care Centre, focusing on service quality improvement[39] - The Group's strategy includes expanding the "Kanghua" brand in the Greater Bay Area, leveraging synergies from the acquisition of the Kanghua Haemodialysis Group[84] Market Trends and Challenges - The overall economic development in China remained steady, with GDP reaching RMB134.9 trillion, representing a year-on-year increase of 5.0% at constant price[24] - The healthcare market in China is moving towards greater efficiency and accessibility, driven by digital transformation and an aging population[22] - The Group faces challenges due to intensified national policy reforms and a decrease in post-COVID-19 related demand[23] - The healthcare industry is undergoing comprehensive reforms aimed at improving accessibility and affordability, including price transparency and value-based care[24] - Recent policy reforms and tightened social insurance payments are expected to continue impacting revenue growth negatively[170] Cost and Expenses - Staff-related costs increased by 7.4%, attributed to higher salary levels and a shortage of qualified professionals[184] - Administrative expenses rose by approximately 14.3% to RMB 277.1 million from RMB 242.4 million, mainly driven by an increase in administrative staff costs to RMB 99.5 million, up from RMB 84.1 million, reflecting an 18.2% year-on-year increase[199] - Finance costs surged by 96.0% to RMB 23.6 million from RMB 12.1 million, influenced by a one-off charge related to unamortised bank arrangement fees and the full repayment of a major bank loan[200] - The increase in rental expenses and property management expenses was approximately 13.4%, rising to RMB 26.6 million from RMB 23.4 million[199] Acquisitions and Investments - The Group completed the acquisition of a 70% equity interest in Dongguan Kanghua Haemodialysis Healthcare Investment Management Co., Ltd., enhancing its haemodialysis services[58] - The acquisition of the haemodialysis services business is expected to impact financial performance positively in the long term[187] - As of December 31, 2024, the total investment in the Kanghua Qingxi Healthcare Complex amounted to approximately RMB 229.2 million[158]
康华医疗(03689) - 2024 - 年度财报