新世纪医疗(01518) - 2025 - 中期业绩

Interim Results Announcement 2025 Interim Results Summary The Group reported RMB304.5 million in revenue and a RMB41.1 million loss before tax for H1 2025, driven by reduced service demand and asset impairment Key Operating Data (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Outpatient medical services revenue | 182,520 | 244,616 | (25.4)% | | Outpatient visits | 103,344 | 141,128 | (26.8)% | | Inpatient medical services revenue | 102,786 | 145,285 | (29.3)% | | Inpatient visits | 3,411 | 4,429 | (23.0)% | - For the six months ended June 30, 2025, revenue was RMB304.5 million, a decrease compared to the prior period[4] - For the six months ended June 30, 2025, the Group recorded a loss before income tax of RMB41.1 million, compared to a profit of RMB72.2 million in the prior period[4] - The loss was primarily due to a RMB111.5 million decrease in revenue from reduced demand for pediatric and obstetrics & gynecology services, along with a goodwill impairment loss of RMB12.5 million and an impairment loss on property, plant and equipment of RMB21.2 million[4] Interim Condensed Consolidated Financial Statements This section presents the unaudited interim condensed consolidated financial statements for H1 2025, reflecting a shift from profit to loss and reduced asset and equity values Interim Condensed Consolidated Statement of Comprehensive Income For H1 2025, the Group reported RMB304,528 thousand in revenue, an operating loss of RMB40,095 thousand, and a loss attributable to owners of RMB65,234 thousand Interim Condensed Consolidated Statement of Comprehensive Income (Summary) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 304,528 | 415,956 | | Cost of revenue | (214,882) | (247,237) | | Impairment loss on non-current assets | (33,737) | — | | Operating (loss)/profit | (40,095) | 72,363 | | (Loss)/profit before income tax | (41,088) | 72,169 | | Income tax expense | (17,719) | (23,862) | | (Loss)/profit for the interim period | (58,807) | 48,307 | | (Loss)/profit attributable to owners of the Company | (65,234) | 25,193 | | Basic and diluted (loss)/earnings per share (RMB) | (0.14) | 0.05 | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets decreased to RMB836,782 thousand, with equity attributable to owners at RMB478,856 thousand and total liabilities at RMB396,449 thousand Interim Condensed Consolidated Statement of Financial Position (Summary) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total non-current assets | 424,203 | 478,712 | | Total current assets | 412,579 | 460,422 | | Total assets | 836,782 | 939,134 | | Equity attributable to owners of the Company | 478,856 | 553,826 | | Total equity | 440,333 | 508,876 | | Total non-current liabilities | 122,642 | 137,979 | | Total current liabilities | 273,807 | 292,279 | | Total liabilities | 396,449 | 430,258 | | Total equity and liabilities | 836,782 | 939,134 | Notes to Interim Condensed Consolidated Financial Information This section provides notes to the interim condensed consolidated financial information, detailing business nature, reporting basis, segment data, tax, EPS, receivables, payables, and dividends General Information The Group primarily offers pediatric and obstetrics & gynecology specialist services in China, including online medical services, and was listed on the HKEX in 2017 - The Group primarily provides pediatric and obstetrics & gynecology specialist services in China, along with online medical services[11] - The Company was incorporated in the Cayman Islands on July 31, 2015, and listed on the Main Board of the Hong Kong Stock Exchange on January 18, 2017[11][12] Basis of Preparation of Interim Report The interim condensed consolidated financial information is prepared under HKAS 34, consistent with prior year policies, and new standards are not expected to have a significant impact - The interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[13] - The accounting policies adopted are consistent with the previous financial year, except for the adoption of new and revised standards, which are not expected to have a significant impact on the Group[13][14][15] Segment Information The Group's segments include pediatric, obstetrics & gynecology, and other services, with both pediatric and obstetrics & gynecology revenues decreasing in H1 2025 - The Group primarily operates three segments: pediatric services, obstetrics & gynecology services, and other services (including online medical services, restaurants, gift shops, etc)[16] Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 Segment Results (RMB thousands) | 2024 Segment Results (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Pediatrics | 255,693 | 360,956 | (507) | 95,127 | | Obstetrics & Gynecology | 45,312 | 51,093 | (28,636) | (15,698) | | Others | 3,523 | 3,907 | 2,883 | 546 | | Total (from external customers) | 304,528 | 415,956 | - | - | - The vast majority of revenue from external customers is recognized at a point in time, and all revenue and non-current assets primarily originate from China[19] Income Tax Expense Income tax expense for H1 2025 was RMB17,719 thousand, decreasing due to the Group's loss and deferred tax asset reversal, with varying tax rates for Chinese and Hong Kong entities Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current income tax — China corporate income tax | 9,200 | 22,786 | | Deferred income tax | 8,519 | 1,076 | | Total | 17,719 | 23,862 | - Mainland China subsidiaries are subject to a corporate income tax rate of 25%, with high-tech enterprises enjoying a preferential rate of 15%[22] - Hong Kong profits tax rate is 16.5%, but no tax was payable during the reporting period[23] Earnings Per Share For H1 2025, the loss attributable to owners resulted in a basic and diluted loss per share of RMB0.14, with no potential dilutive shares Earnings Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | (Loss)/profit attributable to owners of the Company (RMB thousands) | (65,234) | 25,193 | | Weighted average number of ordinary shares outstanding (thousands of shares) | 483,184 | 483,184 | | Basic (loss)/earnings per share (RMB) | (0.14) | 0.05 | - For the six months ended June 30, 2025 and 2024, diluted (loss)/earnings per share were equal to basic (loss)/earnings per share, as there were no potential dilutive shares[26] Trade Receivables Net trade receivables decreased by 38.3% to RMB28,523 thousand as of June 30, 2025, primarily from commercial and government insurance Trade Receivables (As of) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables from contracts with customers | 30,219 | 47,683 | | Less: Impairment allowance for trade receivables | (1,696) | (1,533) | | Trade receivables — net | 28,523 | 46,150 | - Trade receivables primarily consist of amounts due from commercial insurance companies and government insurance schemes[27] Trade Payables Total trade payables decreased by 24.1% to RMB22,653 thousand as of June 30, 2025 Trade Payables (As of) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 16,938 | 22,568 | | 4 to 6 months | 3,036 | 5,602 | | 7 months to 1 year | 1,281 | 458 | | Over 1 year | 1,398 | 1,288 | | Total | 22,653 | 29,916 | Dividends For H1 2025, the Company paid a final dividend of RMB7,996 thousand, a decrease from the prior period, with no dividends to non-controlling shareholders Dividends Paid (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Dividends paid per fully paid ordinary share during the interim period | 7,996 | 14,852 | - For the six months ended June 30, 2025, the Company paid a final dividend of RMB7,996 thousand (approximately HK$8,705,000)[29][30] - For the six months ended June 30, 2025, no dividends were declared or paid to non-controlling shareholders of Beijing New Century Children's Hospital Co Ltd, a subsidiary[30] Business Overview The Group's H1 2025 revenue decreased by 26.8% to RMB304.5 million, primarily due to reduced demand for pediatric and obstetrics & gynecology services, prompting new loyalty programs - The Group's business revenue was RMB304.5 million, a 26.8% year-over-year decrease[31] - Pediatric services revenue was RMB255.7 million, a 29.2% year-over-year decrease; obstetrics & gynecology business revenue was RMB45.3 million, an 11.4% year-over-year decrease[31] - The significant revenue decrease was primarily due to reduced demand for pediatric and obstetrics & gynecology medical services, influenced by a decline in overall birth rates and lower incidence of internal medicine infectious diseases[32] - To address the decline in demand, multiple hospital campuses of the Group launched tiered membership cards and long-term loyalty programs[32] - The loss attributable to owners of the Company was RMB65.2 million, mainly due to declining business demand and new impairment losses on goodwill, property, plant and equipment[33] Industry Outlook & Group Strategy National policies and DRG/DIP reforms are shaping the healthcare industry, prompting the Group to focus on brand promotion, tiered membership, pediatric sub-specialties, and staff optimization - National policies, such as the "Outline for Women's Development in China (2021-2030)" and the "Outline for Children's Development in China (2021-2030)", promote the development of women's and children's health, leading to significant growth in demand for comprehensive healthcare services[34] - DRG/DIP payment reform imposes higher requirements on the medical technology level of private high-end medical institutions, further highlighting their advantages and attracting individuals seeking quality services, long treatment courses, complex conditions, and mid-to-high-end commercial medical insurance[35] - The Group's strategy includes: brand promotion among mid-to-high-end commercial insurance institutions; promoting a tiered membership card strategy to lower renewal thresholds; focusing on pediatric sub-specialty development and restructuring child healthcare service product lines; and optimizing staff structure to enhance efficiency[37] Financial Review This section reviews the Group's H1 2025 financial performance, highlighting significant declines in revenue, gross profit, and gross margin, a shift to operating loss, and impacts on balance sheet items and liquidity Segment Revenue Medical services generated RMB301,005 thousand in H1 2025, representing 98.8% of total revenue, with pediatric services contributing 84.0% and obstetrics & gynecology 14.8% Revenue Breakdown (For the six months ended June 30) | Item | 2025 (RMB thousands) | Proportion (%) | 2024 (RMB thousands) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Medical services | 301,005 | 98.8% | 412,049 | 99.1% | | Others | 3,523 | 1.2% | 3,907 | 0.9% | | Total | 304,528 | 100.0% | 415,956 | 100.0% | Composition of Pediatric and Obstetrics & Gynecology Services Revenue (For the six months ended June 30) | Service Type | 2025 (RMB thousands) | Proportion (%) | 2024 (RMB thousands) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Pediatric services | 255,693 | 84.0% | 360,956 | 86.8% | | Obstetrics & Gynecology services | 45,312 | 14.8% | 51,093 | 12.3% | | Total | 301,005 | 98.8% | 412,049 | 99.1% | Cost of Revenue, Gross Profit & Gross Margin For H1 2025, medical services cost of revenue decreased by 13.4% to RMB209.9 million, while gross profit fell 46.9% to RMB89.6 million, and gross margin declined to 29.4% Medical Services Revenue, Cost, Gross Profit & Gross Margin (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 301,005 | 412,049 | | Cost of revenue | 209,856 | 242,370 | | Gross profit | 91,149 | 169,679 | | Gross margin | 30.3% | 41.2% | - Cost of revenue for medical services was RMB209.9 million, a 13.4% year-over-year decrease[47] - Gross profit was RMB89.6 million, a 46.9% year-over-year decrease; gross margin decreased from 40.6% to 29.4%, primarily due to reduced demand for pediatric and obstetrics & gynecology medical services[48] Operating Expenses Selling expenses increased to RMB33.9 million, while administrative and R&D expenses decreased to RMB59.1 million and RMB1.8 million, respectively, alongside significant asset impairment losses - Selling expenses were RMB33.9 million, an increase of 3.4% year-over-year, primarily due to enhanced market penetration efforts[49] - Administrative expenses were RMB59.1 million, a decrease of 2.8% year-over-year, mainly due to cost reduction and improved operational efficiency[50] - Research and development expenses were RMB1.8 million, an 18.2% year-over-year decrease, primarily due to reduced R&D activities[51] - An impairment loss on non-current assets of RMB33.7 million was recorded, comprising an impairment loss on property, plant and equipment of RMB21.2 million and a goodwill impairment loss of RMB12.5 million, mainly due to reduced demand for pediatric and obstetrics & gynecology services and lower-than-expected operating results[52] - A net impairment loss on financial assets of RMB1.6 million was recorded, primarily due to impairment loss on amounts due from related parties[53] Financial Income and Expenses For H1 2025, finance income decreased to RMB1.7 million due to lower interest and exchange rate volatility, while finance costs were RMB3.6 million, mainly from lease interest - Finance income decreased from RMB2.8 million to RMB1.7 million, primarily due to lower interest income and fluctuations in exchange gains/losses[54] - Finance costs were RMB3.6 million, mainly comprising interest expenses related to lease payments[54] Income Tax Expense Income tax expense decreased by 25.9% to RMB17.7 million, primarily due to the Group's loss and a RMB9.0 million deferred tax asset reversal - Income tax expense was RMB17.7 million, a 25.9% year-over-year decrease[55] - The decrease was primarily due to the Group recording a loss and a RMB9.0 million reversal of deferred tax assets from wholly-owned subsidiaries[55] Loss for the Period For H1 2025, the Group reported a loss of RMB58.8 million, a significant shift from the RMB48.3 million profit in the prior period - For the six months ended June 30, 2025, the Group recorded a loss of RMB58.8 million, compared to a profit of RMB48.3 million in the prior period[56] Balance Sheet Items Inventories, trade receivables, and trade payables all decreased, reflecting a decline in medical business and reduced procurement - Inventories decreased by 16.6% from RMB15.7 million to RMB13.1 million, primarily due to a decline in medical business[57] - Trade receivables decreased by 38.3% from RMB46.2 million to RMB28.5 million, primarily due to a year-over-year decrease in medical business[58] - Trade payables decreased by 24.1% from RMB29.9 million to RMB22.7 million, primarily due to reduced usage and procurement of pharmaceuticals and medical consumables[59] Liquidity and Capital Resources Cash and cash equivalents decreased by 6.4% to RMB331.9 million as of June 30, 2025, with no significant investments, borrowings, or contingent liabilities, and ongoing monitoring of exchange rate risk - Cash and cash equivalents were RMB331.9 million, a 6.4% decrease compared to December 31, 2024[60] - For the six months ended June 30, 2025, the Group had no significant investments, acquisitions, or disposals of subsidiaries, associates, and joint ventures[61][62] - Capital expenditure was RMB5.3 million, a 34.6% year-over-year decrease, primarily due to reduced related procurement in H1 2025[63] - The Group had no borrowings as of June 30, 2025, and December 31, 2024, thus the gearing ratio is not applicable[64][70] - The Group primarily operates in China, with most transactions settled in RMB, and continuously monitors foreign exchange rate risks[65] - As of June 30, 2025, there were no contingent liabilities, guarantees, pledges of assets, or contractual obligations that would have a material impact on the financial position or operating results[66][67][68] Employees and Remuneration Policy As of June 30, 2025, the Group had 1,233 employees with total staff costs of RMB161.1 million, and remuneration is performance-based, including benefits and share schemes - As of June 30, 2025, the Group had 1,233 employees (2024: 1,258 employees)[71] - Total staff costs were RMB161.1 million (2024: RMB172.2 million)[71] - Remuneration is determined based on employee performance, skills, qualifications, and experience, and includes social insurance, housing provident fund, performance bonuses, and discretionary bonuses[71] - The Group has adopted a restricted share award scheme and an employee share scheme to attract, retain, and supervise key employees[71] Interim Dividend The Board does not recommend an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[72] Corporate Governance and Other Information The Group adheres to high corporate governance standards, complies with the Standard Code for Securities Transactions, addressed a disciplinary action, and reported no significant post-period events or listed securities transactions Corporate Governance Code The Company complies with the Corporate Governance Code, except for the combined Chairman and CEO roles, which the Board believes benefits the Group's strategy - The Company has complied with all applicable code provisions of the Corporate Governance Code, except for Code Provision C.2.1 (which states that the roles of Chairman and Chief Executive Officer should be separate)[73] - Mr. Jason ZHOU serves as both Chairman and Chief Executive Officer, an arrangement the Board believes benefits the Group's business prospects, management, and overall strategic direction[73] Standard Code for Securities Transactions The Company adopted the Standard Code for directors' securities transactions, and all directors and relevant employees confirmed compliance - The Company has adopted the Standard Code as its code of conduct for directors' securities transactions and has established guidelines for relevant employees that are no less exacting than the Standard Code[74] - All directors and relevant employees have confirmed compliance with the Standard Code and the Company's guidelines for securities transactions for the six months ended June 30, 2025[74] Disciplinary Action Statement The Stock Exchange issued a disciplinary action statement on June 11, 2025, against the Company and directors for Listing Rule breaches, with all required training now completed - The Stock Exchange issued a disciplinary action statement against the Company, three executive directors, and three independent non-executive directors on June 11, 2025[75] - The Stock Exchange Listing Committee alleged that the Company violated several Listing Rules by failing to comply with announcement, circular, and/or shareholder approval requirements for providing financial assistance to connected persons[75] - The relevant directors breached their obligations under Listing Rules 3.08 and 3.09B(2) by failing to use their best endeavors to ensure the Company's compliance with internal controls and the Listing Rules[75] - All relevant directors have completed the training provided by a Stock Exchange-approved training institution within the stipulated timeframe[76] Purchase, Sale or Redemption of Listed Securities Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities during the six months ended June 30, 2025 - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[77] Audit Committee The Audit Committee, chaired by Mr. Sun Hongbin, reviewed the Group's unaudited H1 2025 interim results, confirming their preparation according to accounting standards and adequate disclosure - The Audit Committee comprises Mr. Sun Hongbin (Chairman), Mr. Jiang Yanfu (Independent Non-executive Director), and Mr. Yang Yuelin (Non-executive Director)[78] - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and considers them prepared in accordance with relevant accounting standards and adequately disclosed[78] Post-Reporting Period Events The Group reported no significant events between June 30, 2025, and the date of this announcement - The Group had no significant events between June 30, 2025, and the date of this announcement[79] Publication of Interim Results Announcement and Interim Report This interim results announcement is published on the Stock Exchange and Company websites, with the full interim report to follow for shareholders - This interim results announcement is published on the Stock Exchange website (www.hkexnews.hk) and the **Company's website (www.ncich.com.cn)**[80](index=80&type=chunk) - The interim report, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the aforementioned websites in due course[80] Definitions This section defines key terms and abbreviations used in the announcement to ensure clear understanding of the report content - This section lists definitions for key terms such as the Board, Audit Committee, Beijing Children's Hospital, Corporate Governance Code, China, the Company, Directors, DRG/DIP payment method, Employee Share Scheme, the Group, Hong Kong, Hong Kong Financial Reporting Standards, HK$, Listing Rules, RMB, Standard Code, Remuneration Committee, Restricted Share Award Scheme, Shares, Shareholders, Stock Exchange, year-over-year, and percentage[81][82][83][84][85][88] Board of Directors Information As of this announcement, the Board of Directors comprises executive, non-executive, and independent non-executive directors, including Mr. Jason ZHOU and Dr. Ma Jing - As of the date of this announcement, the Board of Directors comprises three executive directors, four non-executive directors, and four independent non-executive directors[87] - The executive directors are Mr. Jason ZHOU, Ms. Xin Hong, and Mr. Xu Han[87] - The independent non-executive directors are Mr. Wu Guanxiong, Mr. Sun Hongbin, Mr. Jiang Yanfu, and Dr. Ma Jing[87]