康华医疗(03689) - 2025 - 中期业绩

Financial Summary Revenue slightly decreased by 0.3% to RMB 981.5 million, but the company achieved profitability, with adjusted EBITDA up 38.7% to RMB 126.7 million - Table: Financial Summary for the Six Months Ended 30 June 2025 | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 981.5 | 984.5 | -0.3% | | Profit | 32.6 | (24.7) | Turned loss into profit | | Profit for the period attributable to owners of the Company | 41.6 | (19.5) | Turned loss into profit | | Earnings per share | 12.5 cents | (5.8 cents) | Turned positive | | Adjusted EBITDA | 126.7 | 91.3 | +38.7% | | Interim Dividend | None | None | Unchanged | Interim Results The Group's unaudited interim results for H1 2025 show a significant turnaround from loss to profit, driven by asset disposal, hemodialysis growth, and cost control Condensed Consolidated Statement of Profit or Loss Revenue slightly decreased by 0.3% to RMB 981.5 million, but gross profit increased by 8.3% to RMB 158.5 million, turning a loss of RMB 24.7 million into a profit of RMB 32.6 million - Table: Key Data from Condensed Consolidated Statement of Profit or Loss | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 981,535 | 984,518 | -0.3 | | Cost of revenue | (823,002) | (838,119) | -1.8 | | Gross profit | 158,533 | 146,399 | +8.3 | | Other income | 22,752 | 21,154 | +7.6 | | Administrative expenses | (108,754) | (140,468) | -22.6 | | Finance costs | (8,113) | (17,061) | -52.4 | | Profit/(loss) before tax | 52,984 | (3,100) | Turned loss into profit | | Income tax expense | (20,413) | (21,557) | -5.3 | | Profit/(loss) for the period | 32,571 | (24,657) | Turned loss into profit | | Profit/(loss) for the period attributable to owners of the Company | 41,642 | (19,542) | Turned loss into profit | | Basic earnings/(loss) per share (RMB cents) | 12.5 | (5.8) | Turned positive | Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group recorded a profit of RMB 32.6 million and total comprehensive income of RMB 52.7 million, significantly improving from a prior-year loss due to property revaluation gains - Table: Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit/(loss) for the period | 32,571 | (24,657) | | Property revaluation gains (net of tax) | 20,098 | – | | Other comprehensive income for the period | 20,098 | – | | Total comprehensive income/(loss) for the period | 52,669 | (24,657) | | Total comprehensive income/(loss) for the period attributable to owners of the Company | 61,740 | (19,542) | Condensed Consolidated Statement of Financial Position Total non-current assets were RMB 1,628.9 million, total current assets RMB 1,156.0 million, with net assets increasing to RMB 1,464.7 million, indicating a solid financial position - Table: Key Data from Condensed Consolidated Statement of Financial Position | Indicator | 30 June 2025 (RMB thousand) | 31 December 2024 (RMB thousand) | | :--- | :--- | :--- | | Total non-current assets | 1,628,947 | 1,631,054 | | Total current assets | 1,156,008 | 1,110,481 | | Total current liabilities | 889,611 | 873,578 | | Net current assets | 266,397 | 236,903 | | Total assets less current liabilities | 1,895,344 | 1,867,957 | | Total non-current liabilities | 430,603 | 405,610 | | Net assets | 1,464,741 | 1,462,347 | | Total equity | 1,464,741 | 1,462,347 | Notes This section provides supplementary information on the interim financial statements, including preparation basis, accounting policies, significant events, and specific account changes 1. General Information and Basis of Preparation Guangdong Kanghua Healthcare Co., Ltd. operates hospital, rehabilitation, hemodialysis, and elderly care services in China, with interim financial data prepared in RMB under IAS 34 and HKEX Listing Rules - The Company is principally engaged in providing hospital services, rehabilitation and other medical services, hemodialysis services, and elderly care services in China[8] - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 and the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[9] 1A. Significant Events and Transactions during the Interim Period The Group disposed of a 55% equity interest in Kangxin Hospital for RMB 34.936 million, recognizing a gain of RMB 19.480 million, and now accounts for the remaining 45% as an associate - On 9 January 2025, the Company entered into a sale and purchase agreement with Beijing Bosong Health Management Co., Ltd. for the disposal of a 55% equity interest in Chongqing Kanghua Zhonglian Cardiovascular Hospital Co., Ltd. (Kangxin Hospital) for a consideration of RMB 34.936 million[10] - The disposal was completed on 8 February 2025, after which Kangxin Hospital ceased to be a subsidiary of the Company and its financial results are no longer consolidated; the Company has accounted for its remaining 45% equity interest in Kangxin Hospital as an interest in an associate using the equity method[11] - The Group recognized a gain on disposal of approximately RMB 19.480 million and recognized its remaining 45% equity interest in Kangxin Hospital (at fair value) of RMB 23.158 million as an interest in an associate[11] 2. Principal Accounting Policies Interim financial data is prepared under historical cost, applying new IFRS amendments for investments in associates and investment properties for the first time Application of New Accounting Policies for Investments in Associates and Investment Properties Investments in associates are equity-accounted, with retained interests measured at fair value upon loss of significant influence, and investment properties are fair-valued with changes in profit or loss - Investments in associates are accounted for in the consolidated financial statements using the equity method, initially recognized at cost and adjusted for the share of profit or loss and other comprehensive income[14] - When the Group ceases to have significant influence over an associate, the retained interest is measured at fair value, and the difference between the carrying amount of the associate and the fair value of the retained interest plus proceeds from disposal is recognized in profit or loss[17][18] - Investment properties are measured at fair value, with gains or losses arising from changes in fair value recognized in profit or loss; when an owner-occupied property is transferred to investment property, the difference between the carrying amount and fair value is recognized in other comprehensive income[20] Application of Amendments to International Financial Reporting Standards The Group adopted IAS 21 amendments "Lack of Exchangeability" in this interim period, which had no material impact on its financial position or performance - The Group first applied the amendments to IAS 21 "Lack of Exchangeability"[21] - The application of these amendments did not have a significant impact on the Group's financial position and performance for the current and prior periods[