Company Overview and Financial Summary Company Basic Information Xikang Cloud Hospital Holdings Inc. announced interim results for the six months ended June 30, 2025 - Company Name: Xikang Cloud Hospital Holdings Inc. [2](index=2&type=chunk) - Stock Code: 9686 [2](index=2&type=chunk) - Reporting Period: Six months ended June 30, 2025 [2](index=2&type=chunk) Financial Summary Total revenue slightly decreased by 0.3% to RMB 178.6 million, while net loss and adjusted net loss significantly improved Financial Summary for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 178,605 | 179,214 | (609) | | Gross Profit | 39,313 | 42,556 | (3,243) | | Gross Profit Margin | 22.0% | 23.7% | (1.7%) | | Loss for the Period | (49,975) | (60,484) | 10,509 | | Add: Share-based payment expenses | 11,571 | 9,182 | 2,389 | | Adjusted Net Loss for the Period | (38,404) | (51,302) | 12,898 | - The interim results were prepared in accordance with Hong Kong Accounting Standards and reviewed by the audit committee and independent auditor [2](index=2&type=chunk) Overall Performance Overview Despite a slight revenue decrease, net loss significantly improved due to optimized resource allocation and production control - Total revenue decreased by 0.3% year-on-year to RMB 178.6 million [3](index=3&type=chunk) - Net loss decreased by 17.4% to RMB 50.0 million [3](index=3&type=chunk) Business Review City Cloud Hospital Platform Business Model The company focuses on building a "City Cloud Hospital Platform" with government cooperation and AI technology to enhance healthcare accessibility - Committed to building a "City Cloud Hospital Platform" that uses cities as entry points and closely links regional medical and health systems [4](index=4&type=chunk) - The core of the business model is government cooperation, ensuring platform credibility [5](index=5&type=chunk) - Driven by AI technology, constructing a digital healthcare service closed-loop of "intelligent matching – precise services – continuous optimization" [5](index=5&type=chunk) Platform Network Scaled Development Leveraging the "Ningbo Model," the company rapidly expanded its city cloud hospital platform network, significantly increasing connected institutions and professionals - The "Ningbo Model" is highly replicable, providing a standardized implementation path for national business expansion [6](index=6&type=chunk) Platform Network Scale Growth (as of June 30, 2025) | Metric | June 30, 2025 | June 30, 2024 | Year-on-year Growth | | :--- | :--- | :--- | :--- | | Connected Medical Institutions | Over 36,000 | - | - | | Of which Hospitals | 3,303 | 2,654 | 24.5% | | Registered Doctors | 147,000 | 137,000 | 8.0% | | Registered Nurses (with 5+ years clinical experience) | 145,000 | 108,000 | 34.1% | Internet+ Nursing Services As a leading "Internet+ Nursing Services" platform, the company achieved high service volume growth through a "home-based medical nursing service" strategy - Core strategic positioning as "home-based medical nursing services," continuously deepening cooperation with multiple provincial and municipal governments in China [7](index=7&type=chunk) - Formed a synergistic development pattern of "provincial benchmark demonstration + municipal rapid replication" [7](index=7&type=chunk) Nursing Service Volume Growth (for the six months ended June 30, 2025) | Service Type | 2025 (person-times) | 2024 (person-times) | Year-on-year Growth | | :--- | :--- | :--- | :--- | | Home Nursing Services | Over 218,000 | Over 142,000 | 53.1% | | Nursing Consultation Services | Over 166,000 | Over 147,000 | 12.9% | Platform Ecosystem and Specialized Operations The company integrates AI and big data to build a comprehensive "medical + nursing + health management" platform, offering specialized and personalized services - Deeply integrating AI and big data technologies to build an intelligent service platform covering "medical + nursing + health management" scenarios [8](index=8&type=chunk) - Optimized specialized medical and nursing solutions for home scenarios, including obstetrics and gynecology, pediatrics, traditional Chinese medicine, rehabilitation, and neurology [8](index=8&type=chunk) Segment Business Revenue Analysis During the reporting period, medical service revenue decreased, while nursing and health management service revenues grew, indicating ongoing business structure optimization Revenue by Business Segment (for the six months ended June 30) | Segment | 2025 Revenue (RMB thousand) | 2025 Share | 2024 Revenue (RMB thousand) | 2024 Share | | :--- | :--- | :--- | :--- | :--- | | Medical Services | 69,827 | 39.1% | 87,615 | 48.9% | | Nursing Services | 34,624 | 19.4% | 24,478 | 13.7% | | Health Management Services | 74,154 | 41.5% | 67,121 | 37.4% | | Total | 178,605 | 100.0% | 179,214 | 100.0% | Medical Services Medical service revenue decreased by 20.3% due to structural optimization of low-profit businesses and increased market competition, despite growth in internet hospital construction - Medical service revenue decreased by 20.3% to RMB 69.8 million [11](index=11&type=chunk)[17](index=17&type=chunk) - Proactively optimized the structure of some low-profit business units, leading to a phased decrease in business volume [11](index=11&type=chunk)[16](index=16&type=chunk) Internet Medical Service Volume (for the six months ended June 30, 2025) | Service Type | 2025 (person-times) | 2024 (person-times) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Total Internet Medical Services | 2.06 million | 2.231 million | -7.7% | | Online Consultation Services | 942,000 | 1.033 million | -8.8% | | Electronic Prescription Services | 394,000 | 373,000 | +5.6% | | Examination and Testing Services | 288,000 | 249,000 | +15.7% | | Telemedicine Services | 436,000 | 576,000 | -24.3% | - Helped 202 hospitals build internet hospitals through the cloud hospital platform, a 22.4% year-on-year increase [17](index=17&type=chunk) Nursing Services Nursing service revenue grew by 41.4%, driven by market promotion, rapid replication of professional operations, and AI-enabled efficiency improvements - Nursing service revenue increased by 41.4% to RMB 34.6 million [11](index=11&type=chunk)[23](index=23&type=chunk) - Home nursing service volume exceeded 218,000 person-times, a 53.1% year-on-year increase [22](index=22&type=chunk) - Launched the nursing AI intelligent agent "Xiao Xi Assistant" to improve service efficiency and user experience [22](index=22&type=chunk) - Service items increased to over 220, focusing on specialized nursing for the elderly, maternal and child, chronic disease, and post-operative populations [23](index=23&type=chunk) Health Management Services Health management service revenue grew by 10.5% due to increased service volume, with the company enhancing precision and intelligence through AI and "1+N" models - Health management service revenue increased by 10.5% to RMB 74.2 million [11](index=11&type=chunk)[25](index=25&type=chunk) - Health management service volume exceeded 205,000 person-times, a 28.1% year-on-year increase [25](index=25&type=chunk) - Innovatively launched digital tools such as the "AI Medical Assistant Xiaokang" intelligent analysis system and "Whole Body Health Map" [25](index=25&type=chunk) Business Outlook Industry Opportunities and Challenges China's healthcare industry faces demographic pressures and expanding market demand, alongside policy support and technological innovation - China's healthcare industry faces dual pressures of aging and declining birth rates, with continuously expanding market demand [26](index=26&type=chunk) - Policy dividends are accelerating, and technological innovation continues to empower industry development [26](index=26&type=chunk) Strategic Direction and Core Trends The company will focus on "AI + full-course disease management" and "universal home-based medical care" to build a national network of home-based medical nursing services - Closely focusing on the core trends of "AI + full-course disease management" and "universal home-based medical care" [26](index=26&type=chunk) - Accelerating the deployment and expansion of the city cloud hospital platform within the smart healthcare ecosystem to form a scaled service network [27](index=27&type=chunk) AI and Big Data Technology Integration The company will deeply integrate AI and big data to upgrade its home-based medical nursing service system, creating a full-course intelligent management closed-loop - Deeply integrating AI and big data technologies to comprehensively upgrade the "home-based medical nursing service" system [27](index=27&type=chunk) - Building a full-course intelligent management closed-loop spanning "prevention – treatment – rehabilitation" [27](index=27&type=chunk) Ecosystem Building and Value Empowerment The company aims to break traditional healthcare boundaries, integrate into the elder care industry, and build a "medical + payment + supply chain + data" closed-loop ecosystem - Committed to breaking the spatiotemporal boundaries of traditional medical service models and becoming an ecosystem builder in the new healthcare industry [28](index=28&type=chunk) - Building a closed-loop ecosystem of "medical + payment + supply chain + data" to better serve C-end users [28](index=28&type=chunk) Financial Performance Analysis Revenue Analysis Total customer contract revenue slightly decreased by 0.3%, with medical service revenue down 20.3%, while nursing and health management services grew by 41.4% and 10.5% respectively Customer Contract Revenue During the reporting period, the company's total customer contract revenue slightly decreased by 0.3% - Total customer contract revenue decreased by 0.3% from RMB 179.2 million to RMB 178.6 million [29](index=29&type=chunk) Medical Service Revenue Medical service revenue decreased by 20.3%, primarily due to structural optimization of low-profit businesses and increased market competition - Medical service revenue decreased by 20.3% to RMB 69.8 million, mainly attributable to structural optimization of low-profit business units and market competition [30](index=30&type=chunk) Nursing Service Revenue Nursing service revenue grew by 41.4%, mainly benefiting from market promotion, rapid replication, and AI-enabled operational efficiency improvements - Nursing service revenue increased by 41.4% to RMB 34.6 million, mainly attributable to market promotion, rapid replication, and AI empowerment improving operational efficiency [31](index=31&type=chunk) Health Management Service Revenue Health management service revenue grew by 10.5%, primarily due to an increase in service volume - Health management service revenue increased by 10.5% to RMB 74.2 million, mainly attributable to an increase in health management service volume [32](index=32&type=chunk) Cost and Gross Profit Cost of sales and services increased by 1.9%, gross profit decreased by 7.6%, and gross profit margin fell from 23.7% to 22.0%, mainly due to the higher proportion of medical service revenue and its declining margin Cost of Sales and Services Cost of sales and services increased by 1.9% year-on-year, mainly influenced by increased revenue from nursing and health management services - Cost of sales and services increased by 1.9% to RMB 139.3 million, mainly attributable to increased revenue from nursing and health management services [33](index=33&type=chunk) Gross Profit and Gross Profit Margin Gross profit decreased by 7.6%, and gross profit margin declined by 1.7 percentage points, primarily due to the higher proportion of medical service revenue and its reduced margin - Gross profit decreased by 7.6% to RMB 39.3 million [34](index=34&type=chunk) - Gross profit margin decreased from 23.7% to 22.0%, mainly attributable to the higher proportion of medical service revenue, where the gross profit margin decreased compared to the same period last year [34](index=34&type=chunk) Gross Profit Margin by Segment (for the six months ended June 30) | Segment | 2025 Gross Profit Margin | 2024 Gross Profit Margin | | :--- | :--- | :--- | | Medical Services | 13.3% | 17.7% | | Nursing Services | 19.1% | 26.6% | | Health Management Services | 31.6% | 30.5% | Expense Analysis Selling and distribution, R&D, and administrative expenses all decreased, reflecting the company's continuous efforts in production control and organizational efficiency optimization Selling and Distribution Expenses Selling and distribution expenses decreased by 17.0%, benefiting from strengthened production control and improved resource allocation efficiency - Selling and distribution expenses decreased by 17.0% to RMB 31.0 million, mainly attributable to continuous strengthening of production control and ongoing improvement in resource allocation efficiency [35](index=35&type=chunk) Research and Development Expenses R&D expenses decreased by 8.0%, also benefiting from strengthened production control and improved resource allocation efficiency - Research and development expenses decreased by 8.0% to RMB 19.6 million, mainly attributable to continuous strengthening of production control and ongoing improvement in resource allocation efficiency [36](index=36&type=chunk) Administrative Expenses Administrative expenses slightly decreased by 1.0%, primarily due to optimized organizational efficiency, leading to reduced personnel and related costs - Administrative expenses decreased by 1.0% to RMB 43.3 million, mainly attributable to continuous optimization of organizational efficiency, resulting in reduced personnel and related costs [37](index=37&type=chunk) Other Financial Items Other income significantly decreased, net other gains substantially increased, net finance costs grew, share of loss of associates decreased, and income tax credit increased Other Income Other income significantly decreased by 74.3%, mainly due to reduced government grants and investment income from wealth management products - Other income decreased by 74.3% to RMB 3.3 million, mainly attributable to reduced government grants and investment income from wealth management products [38](index=38&type=chunk) Net Other Gains Net other gains significantly increased, primarily due to increased gains from the disposal of an associate - Net other gains increased from RMB 0.4 million to RMB 4.9 million, mainly due to increased gains from the disposal of an associate [39](index=39&type=chunk) Finance Income and Costs Net finance costs (finance costs less finance income) increased by 12.2%, primarily due to a decrease in interest income - Net finance costs (finance costs less finance income) increased by 12.2% to RMB 6.2 million, mainly attributable to a decrease in interest income [40](index=40&type=chunk) Share of Loss of Associates Share of loss of associates decreased by 5.2%, primarily due to a reduction in the losses of associates - Share of loss of associates decreased by 5.2% to RMB 4.7 million, mainly attributable to a decrease in the losses of associates [41](index=41&type=chunk) Income Tax Credit Income tax credit increased, primarily due to an increase in deferred income tax credit - Income tax credit increased to RMB 0.3 million, mainly attributable to an increase in deferred income tax credit [42](index=42&type=chunk) Loss for the Period and Adjusted Net Loss Loss for the period decreased by 17.4% year-on-year, and adjusted net loss decreased by 25.1%, driven by nursing business scale, improved efficiency, AI empowerment, and reduced impairment losses - Loss for the period decreased by 17.4% from RMB 60.5 million to RMB 50.0 million [43](index=43&type=chunk) - Adjusted net loss (a non-HKFRS measure) decreased by 25.1% to RMB 38.4 million [46](index=46&type=chunk) - The decrease in adjusted net loss was mainly attributable to the scale effect of the nursing business, improved organizational efficiency, AI empowerment enhancing operational efficiency, and a decrease in net impairment losses on financial assets [46](index=46&type=chunk) Financial Position and Liquidity Contingent Liabilities and Capital Expenditures As of the end of the reporting period, the company had no significant contingent liabilities, and capital expenditures were primarily for property, plant, and equipment - As of June 30, 2025, the Group had no significant contingent liabilities [48](index=48&type=chunk) - During the reporting period, capital expenditures of RMB 4.1 million were mainly used for the purchase of property, plant, and equipment [49](index=49&type=chunk) Pledge of Assets and Future Investment Plans The company had no pledged assets as of the reporting period, and future major investment plans are related to the use of proceeds from the global offering - As of June 30, 2025, the Group had no pledged assets [50](index=50&type=chunk) - Except for the use of proceeds from the global offering, as of June 30, 2025, the Group had no other plans for significant investments or capital assets [51](index=51&type=chunk) Liquidity and Capital Resources The company primarily funds operations through bank borrowings and equity financing, with cash and cash equivalents of RMB 490.8 million, and expects to utilize global offering proceeds - As of June 30, 2025, cash and cash equivalents amounted to RMB 490.8 million [52](index=52&type=chunk) - It is expected that part of the proceeds from the global offering will be used to fund working capital requirements [52](index=52&type=chunk) Cash Flow Analysis During the reporting period, net decrease in cash and cash equivalents was RMB 268.3 million, with decreased net cash used in operating activities, significantly increased net cash used in investing activities, and increased net cash used in financing activities Cash Flow (for the six months ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash used in operating activities | (49,961) | (64,306) | | Net cash used in investing activities | (147,517) | (6,519) | | Net cash used in financing activities | (70,843) | (33,783) | | Net decrease in cash and cash equivalents | (268,321) | (104,608) | | Cash and cash equivalents at end of period | 490,789 | 575,930 | Operating Cash Flow Net cash used in operating activities was RMB 50.0 million, reflecting cash used in operations and other cash item changes - Net cash used in operating activities was RMB 50.0 million [54](index=54&type=chunk) Investing Cash Flow Net cash used in investing activities significantly increased to RMB 147.5 million, primarily due to subscriptions for wealth management products - Net cash used in investing activities was RMB 147.5 million, mainly attributable to subscriptions for wealth management products of RMB 395.0 million, partially offset by redemptions of wealth management products of RMB 251.4 million [55](index=55&type=chunk) Financing Cash Flow Net cash used in financing activities was RMB 70.8 million, primarily due to repayment of borrowings - Net cash used in financing activities was RMB 70.8 million, mainly attributable to repayment of borrowings of RMB 290.8 million, partially offset by proceeds from bank borrowings of RMB 244.0 million [56](index=56&type=chunk) Borrowings As of the reporting period, total principal balance of borrowings was RMB 463.1 million, with RMB 30.7 million in undrawn bank facilities, and most borrowings maturing by June 2026 - As of June 30, 2025, the total principal balance of borrowings was RMB 463.1 million [57](index=57&type=chunk) - As of June 30, 2025, bank facilities of RMB 30.7 million remained undrawn [57](index=57&type=chunk) Significant Investments and Capital Commitments Significant Investments Held The company holds significant investments in Neusoft Management Consulting (Shanghai) Co., Ltd. and wealth management products to enhance capital efficiency and generate synergies Significant Investment Details (as of June 30, 2025) | Investee Company Name | Main Business | Investment Cost (RMB thousand) | Shareholding Percentage | Carrying Amount (RMB thousand) | Percentage of Total Group Assets | Share of Loss of Associates (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Neusoft Management Consulting (Shanghai) Co., Ltd. | Enterprise consulting services, including medical equipment | 96,436 | 49.00% | 85,330 | 7.68% | (1,190) | - As of June 30, 2025, the Group held wealth management products amounting to USD 20.1 million, with a fair value of USD 20.2 million, representing 13.0% of the Group's total assets [59](index=59&type=chunk) Capital Commitments As of the end of the reporting period, the company had no significant capital commitments - As of June 30, 2025, the Group had no significant capital commitments [60](index=60&type=chunk) Significant Acquisitions and Disposals of Subsidiaries, Associates, and Joint Ventures The company completed a partial equity transfer and capital increase in Dalian Yunshe, reducing its shareholding and reclassifying it as an equity investment at fair value through other comprehensive income - Xikang Health Technology, a wholly-owned subsidiary of the Company, sold RMB 32,757,364 of Dalian Yunshe's registered capital, representing approximately 4.23% of Dalian Yunshe's total share capital, for a consideration of RMB 30 million [61](index=61&type=chunk) - Following the equity transfer and capital increase arrangements, the Company holds RMB 58,982,636 of Dalian Yunshe's registered capital, representing approximately 7.15% of Dalian Yunshe's total share capital [61](index=61&type=chunk) - The Group's equity interest in Dalian Yunshe has been reclassified as an equity investment designated at fair value through other comprehensive income [104](index=104&type=chunk) Risk Management Foreign Exchange Risk The company primarily operates in China with most transactions settled in RMB, and management believes there are no significant foreign exchange risks - The functional currencies of the Company and its subsidiaries operating in China are USD and RMB, respectively, with most transactions settled in RMB [63](index=63&type=chunk) - Management believes that the Company's business does not face any significant foreign exchange risk [63](index=63&type=chunk) Gearing Ratio As of June 30, 2025, the Group's gearing ratio was 9.3% - As of June 30, 2025, the Group's gearing ratio was 9.3% [64](index=64&type=chunk) Cash Flow and Fair Value Interest Rate Risk The company's revenue and operating cash flows are largely unaffected by market interest rate changes - Revenue and operating cash flows are largely unaffected by market interest rate changes, and there are no significant interest-bearing assets other than investments in wealth management products [65](index=65&type=chunk) Corporate Governance and Other Information Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities on the Stock Exchange - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's securities listed on The Stock Exchange of Hong Kong Limited [66](index=66&type=chunk) Employees and Remuneration Policy As of June 30, 2025, the company had 834 full-time employees, with staff costs of RMB 74.9 million, and is committed to a competitive and fair remuneration system with comprehensive benefits and training - As of June 30, 2025, the Company had 834 full-time employees [67](index=67&type=chunk) Employee Functional Distribution (as of June 30, 2025) | Function | Number of Employees | Percentage of Total | | :--- | :--- | :--- | | Management and Administration | 138 | 16.5% | | Sales, Marketing, and Operations Support | 204 | 24.5% | | Research and Development | 151 | 18.1% | | Health Management | 341 | 40.9% | | Total | 834 | 100.0% | - Staff costs paid to employees amounted to RMB 74.9 million (for the six months ended June 30, 2024: RMB 86.6 million) [67](index=67&type=chunk) Events After Reporting Period After the reporting period, the company granted 28,990,000 share options to 236 eligible participants on July 21, 2025 - Pursuant to the Post-IPO Share Option Scheme, the Company granted a total of 28,990,000 share options to 236 eligible participants on July 21, 2025 [69](index=69&type=chunk) Compliance with Corporate Governance Code The company has complied with the code provisions of the Corporate Governance Code throughout the reporting period and up to the date of this announcement - The Company has complied with the code provisions of the Corporate Governance Code throughout the reporting period and up to the date of this results announcement [72](index=72&type=chunk) Use of Proceeds from Global Offering Net proceeds from the global offering were approximately HKD 554.5 million, primarily for expanding the cloud hospital platform, enriching products, R&D, potential M&A, and working capital, with some idle funds used for wealth management products - The net proceeds from the global offering were approximately HKD 554.5 million (assuming the over-allotment option was not exercised) [73](index=73&type=chunk) Use of Proceeds from Global Offering (as of June 30, 2025) | Use of Proceeds | Percentage of Proceeds | Net Proceeds (HKD million) | Unused Amount as of Jan 1, 2025 (HKD million) | Amount Used for the Six Months Ended June 30, 2025 (HKD million) | Unused Amount as of June 30, 2025 (HKD million) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Expand city-entry cloud hospital platform to enlarge medical network and user base | 30% | 166.3 | 150.1 | 13.9 | 136.2 | By December 31, 2028 | | Enrich products across the industry value chain to provide more professional and diverse healthcare services | 25% | 138.6 | 128.5 | 6.4 | 122.1 | By December 31, 2028 | | R&D of technology infrastructure and data processing capabilities | 25% | 138.6 | 117.7 | 19.7 | 98.0 | By December 31, 2028 | | Potential M&A opportunities | 10% | 55.5 | 55.5 | 0.0 | 55.5 | By December 31, 2028 | | Working capital and other general corporate purposes | 10% | 55.5 | 44.7 | 7.7 | 37.0 | By December 31, 2028 | - Intends to use idle proceeds of no more than USD 40 million to purchase highly secure, liquid, and redeemable wealth management products for cash management [74](index=74&type=chunk) Interim Dividend The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2025 [76](index=76&type=chunk) Compliance with Model Code All Directors confirmed full compliance with the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period and up to the date of the results announcement - Following specific enquiries made to all Directors, all Directors confirmed that they had fully complied with all relevant requirements set out in the Model Code throughout the reporting period and up to the date of this results announcement [77](index=77&type=chunk) Auditor's Scope of Work and Audit Committee The Group's interim condensed consolidated financial statements have been agreed by Ernst & Young to match the unaudited interim financial statements and reviewed by the Audit Committee - The figures in the Group's interim condensed consolidated statement of financial position, interim condensed consolidated statement of profit or loss and other comprehensive income, and related notes for the six months ended June 30, 2025, as set out in this results announcement, have been agreed by Ernst & Young, the Group's auditor, to be consistent with the amounts set out in the Group's unaudited interim financial statements [78](index=78&type=chunk) - The Company's Audit Committee has reviewed the Company's interim results for the six months ended June 30, 2025 [79](index=79&type=chunk) Notes to the Interim Condensed Consolidated Financial Statements General Information Xikang Cloud Hospital Holdings Inc., incorporated in the Cayman Islands on May 12, 2011, primarily provides medical, nursing, and health management services in China - Xikang Cloud Hospital Holdings Inc. was incorporated as an exempted company in the Cayman Islands on May 12, 2011, under the Companies Act of the Cayman Islands [84](index=84&type=chunk) - The Group is principally engaged in providing medical services, nursing services, and health management services in the People's Republic of China [84](index=84&type=chunk) Basis of Preparation and Significant Accounting Policies The interim condensed consolidated financial information is prepared under HKAS 34, with newly adopted HKFRS amendments having no significant impact on financial information - The interim condensed consolidated financial information for the six months ended June 30, 2025, has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" [85](index=85&type=chunk) - The revised Hong Kong Financial Reporting Standards accounting standards were adopted for the first time in this period's financial information, but these amendments had no impact on the interim condensed consolidated financial information [86](index=86&type=chunk)[87](index=87&type=chunk) Operating Segment Information This section provides detailed revenue, cost of sales, and gross profit data for the three operating segments: medical, nursing, and health management services, reflecting their profitability Operating Segment Gross Profit (for the six months ended June 30) | Segment | 2025 Gross Profit (RMB thousand) | 2024 Gross Profit (RMB thousand) | | :--- | :--- | :--- | | Medical Services | 9,306 | 15,536 | | Nursing Services | 6,601 | 6,523 | | Health Management Services | 23,406 | 20,497 | | Total | 39,313 | 42,556 | Revenue and Other Income This section details the classification of customer contract revenue (by geographical market and timing of recognition) and the composition of other income, including government grants and wealth management investment returns Disaggregated Revenue from Contracts with Customers (for the six months ended June 30, 2025) | Segment | Mainland China (RMB thousand) | Recognized at a point in time (RMB thousand) | Recognized over time (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Medical Services | 69,827 | 67,210 | 2,617 | 69,827 | | Nursing Services | 34,624 | 34,500 | 124 | 34,624 | | Health Management Services | 74,154 | 74,009 | 145 | 74,154 | | Total | 178,605 | 175,719 | 2,886 | 178,605 | Other Income Components (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Government grants | 1,620 | 7,732 | | Investment return from wealth management products | 1,568 | 4,872 | | VAT refunds and VAT reductions | – | 127 | | Service fee refunds for withheld individual income tax | 105 | 91 | | Other items | – | 9 | | Total | 3,293 | 12,831 | Loss Before Tax This section lists the main expenses and gains contributing to the loss before tax, including cost of sales, depreciation, amortization, employee benefit expenses, and net impairment of financial and contract assets Key Components of Loss Before Tax (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of sales of hardware, software, raw materials, etc. | 108,619 | 110,765 | | Depreciation of property, plant and equipment | 4,222 | 4,046 | | Depreciation of right-of-use assets | 10,442 | 10,824 | | Amortization of intangible assets | 313 | 344 | | Total employee benefit expenses | 86,439 | 95,763 | | Net impairment (reversal) / impairment of financial and contract assets | (7,781) | 3,619 | Finance Income and Costs This section analyzes the company's finance income and costs, primarily comprising interest income, interest on bank borrowings, and interest on lease liabilities Finance Income and Costs Analysis (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Finance income: Interest income | 5,715 | 8,498 | | Finance costs: Interest on bank borrowings | (10,506) | (11,945) | | Finance costs: Interest on lease liabilities | (1,427) | (2,080) | | Finance costs: Interest on long-term payables | – | (16) | | Total Finance Costs | (11,933) | (14,041) | Income Tax This section explains the company's income tax rates in Mainland China (including preferential rates for high-tech enterprises) and the specific components of income tax credit - In Mainland China, the Company is subject to a 25% PRC enterprise income tax rate, but one Chinese subsidiary enjoys a 15% preferential tax rate as a recognized high-tech enterprise [95](index=95&type=chunk) Income Tax Credit Analysis (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current - PRC expense for the period | 1,028 | 306 | | Underprovision in prior periods | 261 | 16 | | Deferred | (1,606) | (465) | | Total Income Tax Credit | (317) | (143) | Loss Per Share Attributable to Ordinary Equity Holders of the Parent Company This section provides details on the calculation of basic and diluted loss per share attributable to ordinary equity holders of the parent company - Basic and diluted loss per share was RMB (0.06) (2024: RMB (0.07)) [81](index=81&type=chunk)[99](index=99&type=chunk) - The weighted average number of ordinary shares outstanding during the period was 841,876,805 shares [99](index=99&type=chunk) Property, Plant and Equipment This section discloses the acquisitions and disposals of property, plant, and equipment during the reporting period - For the six months ended June 30, 2025, the Group acquired assets with a total cost of RMB 1,201,000 and disposed of assets with a total carrying amount of RMB 593,000 [101](index=101&type=chunk) Right-of-Use Assets This section discloses the acquisitions and partial or full terminations of right-of-use assets during the reporting period - For the six months ended June 30, 2025, the Group acquired assets with a total cost of RMB 5,426,000 and partially or fully terminated assets with a total carrying amount of RMB 2,243,000, resulting in a net gain of RMB 103,000 [102](index=102&type=chunk) Investments in Associates This section details the opening and closing balances and changes in investments in associates, including the disposal of a partial equity interest in Dalian Yunshe and its accounting treatment change Changes in Investments in Associates (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Opening balance | 169,559 | 186,993 | | Share of loss of associates | (4,670) | (17,434) | | Disposal of partial equity interest in an associate | (79,559) | – | | Closing balance | 85,330 | 169,559 | - The Group's shareholding in Dalian Yunshe decreased from approximately 11.83% to 7.15% and has been reclassified as an equity investment designated at fair value through other comprehensive income [104](index=104&type=chunk) Long-term Trade Receivables This section provides the net carrying amount and aging analysis of long-term trade receivables, primarily related to smart healthcare product sales contracts - The net carrying amount of long-term trade receivables was RMB 3,314 thousand [105](index=105&type=chunk)[106](index=106&type=chunk) - The total consideration for long-term trade receivables will be collected within 13 months to 10 years [105](index=105&type=chunk) Trade Receivables This section details the net carrying amount, impairment reversal, aging distribution, and amounts due from related parties for trade receivables - The net carrying amount of trade receivables was RMB 87,799 thousand, with an impairment reversal of RMB 11,144 thousand [107](index=107&type=chunk)[110](index=110&type=chunk) - Trade receivables include amounts due from related parties of the Group totaling RMB 5,429 thousand [108](index=108&type=chunk) Trade Payables This section provides the total amount and aging analysis of trade payables - Total trade payables amounted to RMB 162,721 thousand [111](index=111&type=chunk) Dividends The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors of the Company resolved not to declare an interim dividend for the six months ended June 30, 2025 [112](index=112&type=chunk)
熙康云医院(09686) - 2025 - 中期业绩