美皓集团(01947) - 2025 - 中期业绩

Financial Highlights Key Financial Data During the reporting period, Meihao Medical Group's revenue increased by 28.9% to RMB 43.6 million, while loss for the period narrowed to RMB 9.9 million compared to the same period last year Key Financial Data Summary | Indicator | For the six months ended June 30, 2025 (RMB '000) | For the six months ended June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 43,568 | 33,797 | +28.9% | | Cost of sales | (27,550) | (21,449) | +28.4% | | Gross profit | 16,018 | 12,348 | +29.7% | | Loss before tax | (8,719) | (14,432) | -39.5% | | Loss for the period | (9,935) | (15,136) | -34.3% | Interim Condensed Consolidated Financial Statements Statement of Profit or Loss For the six months ended June 30, 2025, the company's revenue increased to RMB 43.6 million, gross profit rose to RMB 16.0 million, and loss for the period narrowed to RMB 9.9 million Interim Condensed Consolidated Statement of Profit or Loss | Indicator | For the six months ended June 30, 2025 (RMB '000) | For the six months ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 43,568 | 33,797 | | Cost of sales | (27,550) | (21,449) | | Gross profit | 16,018 | 12,348 | | Other income and gains | 1,639 | 2,878 | | Selling expenses | (13,641) | (11,217) | | Administrative expenses | (11,587) | (17,454) | | Loss before tax | (8,719) | (14,432) | | Income tax expense | (1,216) | (704) | | Loss for the period | (9,935) | (15,136) | | Loss attributable to owners of the parent | (10,007) | (15,074) | | Basic and diluted loss per share | RMB (1.79) cents | RMB (2.51) cents | Statement of Comprehensive Income For the six months ended June 30, 2025, the company's total comprehensive loss for the period was RMB 9.941 million, a decrease from the prior year, primarily due to narrowed loss for the period and exchange differences Interim Condensed Consolidated Statement of Comprehensive Income | Indicator | For the six months ended June 30, 2025 (RMB '000) | For the six months ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Loss for the period | (9,935) | (15,136) | | Other comprehensive (loss)/income: | | | | Exchange differences on translation of foreign operations | (1,095) | (5) | | Exchange differences on translation of the company's financial statements to presentation currency | 1,089 | 675 | | Other comprehensive (loss)/income for the period, net of tax | (6) | 670 | | Total comprehensive loss for the period | (9,941) | (14,466) | | Total comprehensive loss attributable to owners of the parent | (10,013) | (14,404) | Statement of Financial Position As of June 30, 2025, the company's total assets less current liabilities were RMB 138.7 million, and net assets were RMB 110.5 million, a decrease from the end of 2024, mainly due to a reduction in net current assets Interim Condensed Consolidated Statement of Financial Position | Indicator | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Non-current assets | | | | Property, plant and equipment | 24,240 | 26,119 | | Right-of-use assets | 30,047 | 32,378 | | Goodwill | 11,486 | 11,486 | | Intangible assets | 396 | 494 | | Deferred tax assets | 234 | 234 | | Prepayments, other receivables and other assets | 11,035 | 11,178 | | Financial assets at fair value through profit or loss | 10,000 | 10,000 | | Total non-current assets | 87,438 | 91,889 | | Current assets | | | | Inventories | 2,724 | 2,395 | | Trade receivables | 1,029 | 693 | | Prepayments, other receivables and other assets | 20,381 | 16,683 | | Cash and cash equivalents | 73,026 | 78,494 | | Total current assets | 97,160 | 98,265 | | Current liabilities | | | | Trade payables | 9,208 | 6,557 | | Other payables and accrued expenses | 23,341 | 19,768 | | Contract liabilities | 3,601 | 3,976 | | Lease liabilities | 7,992 | 8,251 | | Tax payable | 1,763 | 1,557 | | Total current liabilities | 45,905 | 40,109 | | Net current assets | 51,255 | 58,156 | | Total assets less current liabilities | 138,693 | 150,045 | | Non-current liabilities | | | | Lease liabilities | 23,113 | 25,180 | | Contract liabilities | 4,503 | 4,459 | | Deferred tax liabilities | 620 | 8 | | Total non-current liabilities | 28,236 | 29,647 | | Net assets | 110,457 | 120,398 | | Total equity | 110,457 | 120,398 | Notes to the Financial Statements Basis of Preparation and Accounting Policies The interim financial information is prepared in accordance with HKAS 34 and consistent with the accounting policies of the 2024 annual consolidated financial statements, with no material impact from newly adopted HKFRS amendments - Interim condensed consolidated financial information is prepared in accordance with HKAS 34 and consistent with 2024 annual financial statements accounting policies[10][11] - Amendments to HKAS 21 regarding lack of exchangeability have no impact on the Group's interim condensed consolidated financial information, as the Group's transaction and functional currencies are convertible[12] Operating Segment Information Group management monitors all operating activities as a whole, resulting in only one reportable operating segment - The Group has only one reportable operating segment, with management monitoring overall operating results for decision-making[13] Revenue Analysis For the six months ended June 30, 2025, the Group's revenue from contracts with customers was RMB 43.568 million, entirely from dental services in Mainland China, recognized over time Revenue Analysis | Revenue Source | For the six months ended June 30, 2025 (RMB '000) | For the six months ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue from contracts with customers | 43,568 | 33,797 | | Service category: Dental services | 43,568 | 33,797 | | Geographical market: Mainland China | 43,568 | 33,797 | | Timing of revenue recognition: Services transferred over time | 43,568 | 33,797 | Loss Before Tax Analysis For the six months ended June 30, 2025, the Group's loss before tax was RMB 8.719 million, primarily influenced by inventory costs, exchange differences, and share-based payment expenses in the prior period Components of Loss Before Tax | Item | For the six months ended June 30, 2025 (RMB '000) | For the six months ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Cost of inventories, consumables and customized products | 5,354 | 5,410 | | Net reversal of impairment loss on financial assets | – | (4) | | Share-based payment expenses | – | 6,216 | | Net exchange differences | (707) | (46) | Income Tax The Group's income tax expense primarily arises from Mainland China subsidiaries, calculated at a 25% statutory rate, with some small-profit enterprises enjoying a 20% preferential rate; Cayman Islands and BVI registered companies are exempt from income tax - The Company and its subsidiaries registered in the Cayman Islands and British Virgin Islands are exempt from income tax[17] - Income tax for Mainland China subsidiaries is calculated at a 25% statutory rate, with some small-profit enterprises enjoying a 20% preferential rate (75% tax reduction for annual taxable income up to RMB 3.0 million)[18] Income Tax Expense Details | Income Tax Item | For the six months ended June 30, 2025 (RMB '000) | For the six months ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Current - Mainland China expense for the period | 604 | 1,141 | | Deferred tax | 612 | (437) | | Total tax expense for the period | 1,216 | 704 | Dividends The Board resolved not to recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (2024 corresponding period: nil)[20] Loss Per Share For the six months ended June 30, 2025, basic loss per share attributable to ordinary equity holders of the parent company narrowed to RMB (1.79) cents from RMB (2.51) cents in the prior period Basic Loss Per Share Calculation | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Loss attributable to ordinary equity holders of the parent (RMB '000) | (10,007) | (15,074) | | Weighted average number of ordinary shares outstanding (shares) | 558,769,350 | 599,799,204 | | Basic loss per share | RMB (1.79) cents | RMB (2.51) cents | - Due to the Group incurring a loss, equity-settled share awards and share option arrangements had an anti-dilutive effect on basic loss per share and were not adjusted for dilution[23] Trade Receivables As of June 30, 2025, total trade receivables amounted to RMB 1.029 million, all within 3 months aging, an increase from RMB 0.693 million at the end of 2024, with a more concentrated short-term aging structure Aging Analysis of Trade Receivables | Aging | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 3 months | 1,029 | 662 | | 3 to 6 months | – | 9 | | 6 to 12 months | – | 2 | | 1 to 2 years | – | 9 | | Over 2 years | – | 11 | | Total | 1,029 | 693 | Trade Payables As of June 30, 2025, total trade payables amounted to RMB 9.208 million, an increase from RMB 6.557 million at the end of 2024, with a significant rise in payables aged within 3 months Aging Analysis of Trade Payables | Aging | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 3 months | 4,218 | 1,422 | | 3 to 6 months | 1,547 | 779 | | 6 to 12 months | 249 | 852 | | Over 1 year | 3,194 | 3,504 | | Total | 9,208 | 6,557 | Events After the Reporting Period Subsequent to the reporting period, on July 18, 2025, the company entered into a subscription agreement with Deepcare Medical Holdings Limited to subscribe for 2,863,492 Class B ordinary shares for US$2.0 million, resulting in approximately 2% ownership of Deepcare Medical upon completion, which remains outstanding as of the announcement date - On July 18, 2025, the company entered into a subscription agreement with Deepcare Medical to subscribe for 2,863,492 Class B ordinary shares for US$2.0 million, which will result in approximately 2% ownership of Deepcare Medical upon completion[26] - As of the announcement date, the subscription for Deepcare Medical remains outstanding[26] Management Discussion and Analysis Business Review Meihao Medical Group, a leading private dental service provider in Wenzhou, reported a 28.9% revenue increase to RMB 43.6 million, driven by advertising and the addition of Leqing Hospital, with active patient numbers rising by 38.3%; the Group offers general dentistry, orthodontics, prosthodontics, and implant dentistry Overview The Group is a renowned private dental service provider in Wenzhou, owning and operating six private dental hospitals and one clinic; during the period, despite the 'centralized procurement policy for dental implants' and market competition, the Group increased revenue from RMB 33.8 million to RMB 43.6 million by enhancing advertising and marketing strategies - The Group is a renowned private dental service provider in Wenzhou, Zhejiang Province, primarily offering general dentistry, prosthodontics, implant dentistry, and orthodontics[27] - As of June 30, 2025, the Group owns and operates six private dental hospitals and one clinic located in Wenzhou[27] - During the reporting period, despite the "centralized procurement policy for dental implants" and local market competition, the Group increased revenue from RMB 33.8 million to RMB 43.6 million by enhancing advertising and marketing strategies[28] Business Categories The Group offers four core dental services: general dentistry (fillings, root canals), orthodontics (various braces), prosthodontics (crowns, removable dentures), and implant dentistry (dental implants) - General dentistry primarily provides fillings and root canal treatment services[29] - Orthodontics offers teeth straightening using standard metal braces, clear aligners, ceramic braces, and smart material clear aligners[30] - Prosthodontics mainly provides dental crown and removable denture services[31] - Implant dentistry focuses on surgically placing dental implants into patients' jawbones to replace damaged or missing teeth with prostheses[32] Active Patient Numbers For the six months ended June 30, 2025, the Group's total active patient count increased to 40,456, a 38.3% year-on-year growth, with significant increases at Longgang Hospital, Lucheng Hospital, and Jielaiya Clinic - The Group's total active patient count increased from 29,259 to 40,456, representing a 38.3% increase[33] Active Patient Numbers Details | Hospital | For the six months ended June 30, 2025 (Active Patients) | For the six months ended June 30, 2024 (Active Patients) | | :--- | :--- | :--- | | Wenzhou Hospital | 14,168 | 14,545 | | Ruian Branch | 1,707 | 1,460 | | Longgang Hospital | 3,347 | 1,669 | | Lucheng Hospital | 7,165 | 5,318 | | Wenzhou Stomatology | 5,207 | 4,238 | | Jielaiya | 5,141 | 2,029 | | Leqing Hospital | 3,721 | – | | Total | 40,456 | 29,259 | Revenue by Hospital For the six months ended June 30, 2025, Wenzhou Hospital remained the largest revenue contributor at 35.8% of total revenue, but Lucheng Hospital, Wenzhou Stomatology, and Jielaiya significantly increased their revenue share, with Leqing Hospital contributing 5.6% Revenue Contribution by Hospital | Hospital | For the six months ended June 30, 2025 (RMB '000) | For the six months ended June 30, 2025 (%) | For the six months ended June 30, 2024 (RMB '000) | For the six months ended June 30, 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Wenzhou Hospital | 15,599 | 35.8 | 18,285 | 54.1 | | Ruian Branch | 1,982 | 4.5 | 1,474 | 4.4 | | Longgang Hospital | 2,120 | 4.9 | 1,836 | 5.4 | | Lucheng Hospital | 9,734 | 22.3 | 4,925 | 14.6 | | Wenzhou Stomatology | 8,916 | 20.5 | 6,369 | 18.8 | | Jielaiya | 2,791 | 6.4 | 908 | 2.7 | | Leqing Hospital | 2,426 | 5.6 | – | – | | Total | 43,568 | 100.0 | 33,797 | 100.0 | - Wenzhou Dental Hospital remains the largest revenue contributor, but its proportion of total revenue decreased from 54.1% to 35.8%[35] - The addition of Leqing Hospital contributed 5.6% of revenue[35] Outlook and Strategies The Group actively responds to national dental centralized procurement policies and market competition by optimizing services, enhancing cost-effectiveness, expanding new businesses, and strengthening sustainability, aiming for 'cost reduction and efficiency improvement' and diversified development, transforming challenges into opportunities Responding to Policies and Market Competition The Group actively addresses challenges from national dental centralized procurement policies by launching personalized packages, enhancing service portfolios, maintaining service quality, and establishing strategic partnerships with suppliers to reduce raw material costs - The Group addresses national dental centralized procurement policies by launching more attractive personalized packages, enhancing service portfolios, maintaining service quality, and achieving cost-effectiveness[36] - The Group establishes long-term strategic partnerships with suppliers to reduce raw material costs through centralized procurement and large-scale production[36] Optimizing Services and Environment The Group enhances customer appeal and social influence through continuous staff training, introducing diverse medical technologies (e.g., Cuban doctors), upgrading hospital environments (adding entertainment and children's interactive areas), and organizing public welfare activities like 'Little Dentist' - The Group continuously improves staff training to enhance communication and treatment efficiency of consultants and medical personnel[37] - The Group collaborates with Wenzhou Science and Technology Bureau and Cuban Medical Bureau to introduce Cuban doctors, integrating diverse domestic and international medical technologies to gain customer trust[37] - Branch hospitals upgrade their environments by adding entertainment facilities and children's interactive areas, and continue to organize public welfare activities like "Little Dentist" to enhance the customer visit experience[38] Business Diversification and Innovation Beyond consolidating dental operations, the Group actively explores other industries and medical businesses, establishes partnerships with medical equipment companies to control the supply chain, plans to expand into corporate venture capital, and engage in other upstream and downstream healthcare sectors, seeking international cooperation - The Group establishes partnerships with medical equipment companies to control sources of raw materials, equipment, and technology, and invests in innovative technologies and R&D[39] - The Group is exploring business expansion into corporate venture capital and other upstream and downstream healthcare sectors, with plans for international cooperation[39] Strengthening Sustainable Development The Group deeply integrates sustainable development into its operations by monitoring consumables, energy consumption, and waste generation, optimizing procurement and treatment processes, building low-carbon workspaces, and cultivating versatile talents to achieve 'cost reduction and efficiency improvement' and align hospital development with social responsibility - The Group optimizes procurement, diagnosis, and cleaning processes by monitoring consumables usage, energy consumption, and waste generation, aiming for "cost reduction and efficiency improvement"[40] - The Group builds low-carbon workspaces, implements energy-saving equipment upgrades and paperless offices, and establishes a sustainable talent pool to cultivate versatile professionals[40] Financial Review During the reporting period, the Group's revenue increased by 28.9% year-on-year, primarily due to advertising and the addition of a new hospital; all dental service categories saw revenue growth, with implant dentistry showing the largest increase; cost of sales rose with revenue, but gross margin slightly improved; administrative expenses significantly decreased, and loss for the period narrowed substantially Revenue During the reporting period, the Group's revenue was approximately RMB 43.6 million, an increase of approximately 28.9% year-on-year, primarily due to effective advertising attracting more customers and the inclusion of Leqing Hospital's financial data - During the reporting period, the Group's revenue was approximately RMB 43.6 million, an increase of approximately 28.9% year-on-year[41] - The increase in revenue is primarily attributed to effective advertising attracting more customers and the inclusion of Leqing Hospital's financial data[41] Revenue by Dental Service Category All dental service categories achieved revenue growth, with implant dentistry showing the largest increase at 75.6%, primarily due to advertising; orthodontics revenue grew by 42.5%, while general dentistry and prosthodontics increased by 14.4% and 28.5% respectively Revenue by Dental Service Category | Service Category | For the six months ended June 30, 2025 (RMB million) | For the six months ended June 30, 2024 (RMB million) | Year-on-year growth (%) | % of Total Revenue (2025) | % of Total Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | General Dentistry | 16.3 | 14.3 | +14.4% | 37.5% | 42.2% | | Orthodontics | 8.2 | 5.7 | +42.5% | 18.8% | 17.0% | | Prosthodontics | 9.1 | 7.1 | +28.5% | 20.9% | 21.0% | | Implant Dentistry | 7.6 | 4.3 | +75.6% | - | - | - Implant dentistry revenue increased by 75.6%, primarily due to increased advertising efforts for the implant department across the Group's hospitals, attracting more new customers[45] - Orthodontics revenue increased by 42.5%, mainly due to auditors adjusting the required treatment period for orthodontics and re-recognizing revenue[43] Cost of Sales, Gross Profit and Gross Margin Cost of sales increased by 28.4% to RMB 27.6 million, mainly due to higher inventory costs and depreciation expenses; gross profit increased by 29.7% year-on-year to RMB 16.0 million, with gross margin slightly rising to 36.8% - Cost of sales increased by 28.4% to RMB 27.6 million, primarily due to higher inventory costs and depreciation expenses for property, plant and equipment, and right-of-use assets[46] - Gross profit increased by 29.7% to RMB 16.0 million year-on-year, with gross margin slightly rising to 36.8% (2024: 36.5%), mainly due to increased revenue and some fixed cost components in cost of sales[47] Other Income and Expenses Other income and gains decreased by 43.1% to RMB 1.6 million, primarily due to lower bank interest income; selling expenses increased by 21.6% to RMB 13.6 million, mainly due to higher marketing and promotion expenses; administrative expenses decreased by 33.6% to RMB 11.6 million, benefiting from senior management reassignments and effective human resource management - Other income and gains decreased by 43.1% to RMB 1.6 million, primarily due to lower bank interest income[48] - Selling expenses increased by 21.6% to RMB 13.6 million, mainly due to higher marketing and promotion expenses[49] - Administrative expenses decreased by 33.6% to RMB 11.6 million, primarily due to reduced staff costs from senior management reassignments and strict implementation of effective human resource management[50] Income Tax and Loss for the Period Income tax expense increased to RMB 1.2 million, primarily due to higher revenue during the reporting period; loss attributable to owners of the company narrowed to RMB 10.0 million, a significant improvement from RMB 15.1 million in the prior period - Income tax expense increased to RMB 1.2 million (2024: RMB 0.7 million), primarily due to higher revenue during the reporting period[51] - Loss attributable to owners of the company narrowed to RMB 10.0 million (2024: RMB 15.1 million)[52] Liquidity, Financial Resources and Capital Structure As of June 30, 2025, the Group's net current assets were RMB 51.3 million, current ratio was 2.0 times, and cash and cash equivalents were RMB 73.0 million; the Group had no bank loans, making the gearing ratio not applicable Liquidity and Financial Resources Overview | Indicator | As of June 30, 2025 (RMB million) | As of December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Net current assets | 51.3 | 58.2 | | Current ratio | 2.0 times | 2.4 times | | Cash and cash equivalents | 73.0 | 78.5 | | Bank loans | Nil | Nil | - The Group primarily funds its operations through cash generated from operations and net proceeds from the global offering[54] Other Financial Disclosures The Group has no pledged assets, significant contingent liabilities, or guarantees; capital commitments primarily for leasehold improvements and medical equipment acquisition amount to approximately RMB 2.5 million; the Group remains vigilant to RMB and HKD exchange rate fluctuations and plans to use net proceeds from global offering for business expansion and working capital - As of June 30, 2025, the Group has no pledged assets, significant contingent liabilities, or guarantees[55][58] - Capital commitments amount to approximately RMB 2.5 million, primarily for leasehold improvements and acquisition of medical equipment[57] - The Group remains vigilant to exchange rate fluctuations between RMB and HKD and will consider hedging measures if necessary[56] - The Group plans to use net proceeds from the global offering for business expansion and working capital, with no other significant future plans for investments or capital assets currently[61] Other Information Securities Transactions and Dividends During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities; the Board resolved not to declare an interim dividend - 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[63] - The Board resolved not to recommend an interim dividend for the six months ended June 30, 2025[65] Corporate Governance The Group is committed to maintaining high standards of corporate governance and business ethics, complying with all code provisions of the Corporate Governance Code in Appendix C1 Part 2 of the Listing Rules, except for the non-segregation of Chairman and Chief Executive roles (Code Provision C.2.1), which the Board believes ensures consistent internal leadership and decision-making efficiency - The Group is committed to maintaining high standards of corporate governance and business ethics to optimize its long-term interests and those of its shareholders[66] - The Group complies with all code provisions of the Corporate Governance Code, except for a deviation from Code Provision C.2.1 (non-segregation of Chairman and Chief Executive roles)[68] - The Board believes that combining the roles of Chairman and Chief Executive in the same person ensures consistent internal leadership, leading to more effective and efficient overall strategic planning[69] - The Board has received written confirmation from all Directors confirming their strict compliance with the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period[71] Audit Committee The Audit Committee, comprising three independent non-executive directors, is responsible for reviewing and overseeing the company's financial reporting process, risk management, and internal control systems; the Committee has reviewed this interim results announcement and believes appropriate accounting policies were adopted and Listing Rules complied with during preparation - The Audit Committee, composed of three independent non-executive directors, is responsible for reviewing and overseeing the company's financial reporting process, risk management, and internal control systems[72] - The Audit Committee has reviewed this interim results announcement and believes that appropriate accounting policies were adopted and applicable Listing Rules complied with during its preparation[72] Publication of Report and Acknowledgements This interim results announcement has been published on the HKEX website and the company's website; the interim report will be dispatched to shareholders and posted on the website by September 30, 2025; the Board extends its sincere gratitude to all supporters - This interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.meihaomedical.com)[73](index=73&type=chunk) - The Board extends its sincere gratitude to shareholders, management team, employees, and business partners[74]