熙康云医院(09686) - 2025 - 中期财报

Company Information Board of Directors and Committees The company's Board of Directors, led by Chairman Dr. Liu Jiren and CEO Ms. Zong Wenhong, includes executive, non-executive, and independent non-executive directors, supported by audit, remuneration, nomination, and strategy committees for governance - The Board is chaired by Dr. Liu Jiren as Chairman and Non-executive Director, with Ms. Zong Wenhong as Executive Director and CEO, and includes Audit, Remuneration, Nomination, and Strategy Committees[5] Company Contact Information The company's registered office is in the Cayman Islands, with its principal place of business in Ningbo, Zhejiang, China, and its main Hong Kong office on Queen's Road East, Wan Chai - The company's registered office is in the Cayman Islands, with its principal place of business in Ningbo, Zhejiang, China, and its main Hong Kong office on Queen's Road East, Wan Chai[5][6] Professional Advisors Ernst & Young serves as the company's auditor, with Industrial Bank and China Merchants Bank as primary bankers, and legal counsel provided by Linklaters, Tian Yuan Law Firm, and Maples and Calder (Hong Kong) LLP for Hong Kong, China, and Cayman Islands law - Ernst & Young is the company's auditor, with Industrial Bank and China Merchants Bank as primary bankers, and legal counsel covering Hong Kong, China, and Cayman Islands law[7] Financial Highlights Financial Highlights for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 178,605 | 179,214 | (609) | -0.34% | | Gross Profit | 39,313 | 42,556 | (3,243) | -7.62% | | Gross Margin | 22.0% | 23.7% | (1.7%) | -7.17% | | Loss for the Period | (49,975) | (60,484) | 10,509 | 17.37% | | Add: Share-based Payment Expenses | 11,571 | 9,182 | 2,389 | 26.02% | | Adjusted Net Loss for the Period | (38,404) | (51,302) | 12,898 | 25.14% | Management Discussion and Analysis Business Review During the reporting period, the company maintained its 'City Cloud Hospital Platform' model, focusing on government collaboration and AI-driven growth, achieving scaled platform networks and core business expansion, particularly in 'Internet+Nursing Services,' while optimizing low-profit medical services Core Business Model - Adhering to the 'City Cloud Hospital Platform' model, leveraging government support to rapidly acquire urban medical resources and provide professional, convenient medical and nursing services[9] - The core business model involves government cooperation, city-wide batch access, and AI technology, building a 'smart matching – precise service – continuous optimization' digital healthcare service closed-loop[10] Platform Network Development - As of June 30, 2025, over 36,000 medical institutions were connected to the platform network, including 3,303 hospitals, a 24.5% year-on-year increase[12] - Resident doctors reached 147,000, an 8.0% year-on-year increase; resident nurses reached 145,000, a 34.1% year-on-year increase[12] Core Business Focus - Home nursing service volume exceeded 218,000 person-times, a 53.1% year-on-year increase[13] - Nursing consultation service volume exceeded 166,000 person-times, a 12.9% year-on-year increase[13] Platform Ecosystem and Specialized Operations - During the reporting period, the company achieved significant business value growth, improved operational efficiency, and optimized financial structure through continuous urban network expansion and service product matrix innovation[15] Segment Revenue Medical Services Medical Services Revenue | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 69,827 | 87,615 | -20.3% | Nursing Services Nursing Services Revenue | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 34,624 | 24,478 | 41.4% | Health Management Services Health Management Services Revenue | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 74,154 | 67,121 | 10.5% | Business Outlook Addressing aging and declining birth rates, the company will focus on 'AI+full-course disease management' and 'universal home healthcare,' leveraging technological innovation and model optimization to build a nationwide 'at-home medical and nursing service' network, aiming to be a key driver of new healthcare infrastructure - Focusing on 'AI+full-course disease management' and 'universal home healthcare' core trends, accelerating the construction of a nationwide 'at-home medical and nursing service' network and ecosystem[33][35] - Deeply integrating AI and big data technologies, comprehensively upgrading the service system, promoting a shift in medical models from passive treatment to proactive health, and extending from hospitals to out-of-hospital and home settings[35] - Committed to breaking the time and space boundaries of traditional medical services, building a one-stop healthcare service platform, integrating resources from government, medical institutions, commercial insurance, and pharmaceutical supply chains[36] Financial Review During the reporting period, total revenue slightly decreased, but the company significantly narrowed its loss for the period and adjusted net loss by optimizing business structure and enhancing operational efficiency; sales, distribution, R&D, and administrative expenses declined, while other income fell sharply due to reduced government grants and wealth management product returns Revenue Analysis Revenue from Contracts with Customers | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 178,605 | 179,214 | (609) | -0.3% | - Medical services revenue decreased by 20.3%, primarily due to structural optimization of low-profit businesses and intensified market competition[38] - Nursing services revenue increased by 41.4%, benefited from market promotion, professional operations, and AI empowerment[39] - Health management services revenue increased by 10.5%, primarily due to increased service volume[40] Costs and Gross Profit Cost of Sales and Services and Gross Profit | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of Sales and Services | 139,292 | 136,658 | 2,634 | 1.9% | | Gross Profit | 39,313 | 42,556 | (3,243) | -7.6% | | Gross Margin | 22.0% | 23.7% | (1.7%) | -7.17% | - Medical services gross margin was 13.3% (2024: 17.7%), nursing services gross margin was 19.1% (2024: 26.6%), and health management services gross margin was 31.6% (2024: 30.5%)[42] Operating Expenses Operating Expenses | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 31,008 | 37,345 | (6,337) | -17.0% | | Research and Development Expenses | 19,570 | 21,270 | (1,700) | -8.0% | | Administrative Expenses | 43,268 | 43,727 | (459) | -1.0% | Other Financial Items Other Income and Gains | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Other Income | 3,293 | 12,831 | (9,538) | -74.3% | | Net Other Gains | 4,921 | 417 | 4,504 | 1080.1% | | Net Finance Costs | 6,218 | 5,543 | 675 | 12.2% | | Share of Loss of Associates | (4,670) | (4,927) | 257 | 5.2% | Loss for the Period and Adjusted Net Loss Loss for the Period and Adjusted Net Loss | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Loss for the Period | (49,975) | (60,484) | 10,509 | 17.4% | | Adjusted Net Loss for the Period | (38,404) | (51,302) | 12,898 | 25.1% | - Adjusted net loss decreased primarily due to economies of scale in nursing services, improved organizational efficiency and resource allocation, reduced expenditure from AI-enabled operational efficiency, and decreased net impairment losses on financial assets due to trade receivables recovery[54] Capital and Liquidity The company had no significant contingent liabilities during the reporting period, with capital expenditures primarily for property and equipment; liquidity stemmed from bank borrowings and equity financing, cash and cash equivalents decreased but remained sufficient, and total borrowings declined while unused bank facilities increased Contingent Liabilities and Capital Expenditures - As of June 30, 2025, the company had no significant contingent liabilities[56] Capital Expenditures | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Capital Expenditures | 4,100 | 4,400 | Liquidity and Capital Resources Cash Flow Summary | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash flows used in operating activities | (49,961) | (64,306) | | Net cash flows used in investing activities | (147,517) | (6,519) | | Net cash flows used in financing activities | (70,843) | (33,783) | | Net decrease in cash and cash equivalents | (268,321) | (104,608) | | Cash and cash equivalents at beginning of period | 760,857 | 676,794 | | Cash and cash equivalents at end of period | 490,789 | 575,930 | - Net cash used in investing activities significantly increased, primarily due to higher subscriptions for wealth management products, partially offset by redemptions[63] Borrowings Principal Balance of Borrowings | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Principal Balance of Borrowings | 463,100 | 509,900 | (46,800) | -9.18% | | Unused Bank Facilities | 30,700 | 100 | 30,600 | 30600.0% | Significant Investments and Transactions The company holds a significant investment in Neusoft Management Consulting (Shanghai) Co., Ltd., reclassifying part of its equity as fair value through OCI; during the period, it also partially divested and increased capital in Dalian Yunshe, reducing its shareholding Significant Investments Held Overview of Significant Investments | Investee Company | Principal Business | Investment Cost (RMB thousands) | Shareholding Percentage | Carrying Amount (RMB thousands) | Percentage of Group's Total Assets | Share of Loss of Associates for Six Months Ended June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 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 company held wealth management products totaling USD 20.1 million, with a fair value of USD 20.2 million, accounting for 13.0% of total assets[67] Significant Acquisitions and Disposals of Subsidiaries, Associates, and Joint Ventures - Xikang Health Technology sold approximately 4.23% equity in Dalian Yunshe for RMB 30 million, reducing the company's shareholding to 7.15% post-transaction[70] Risk Management The company primarily operates in China, with most transactions settled in RMB, and management perceives no significant foreign exchange risk; capital is monitored via the capital-to-debt ratio, which stood at 9.3% as of June 30, 2025 - The company primarily operates in China, with most transactions settled in RMB, and management believes there is no significant foreign exchange risk[73] Capital-to-Debt Ratio | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Capital-to-Debt Ratio | 9.3% | Not applicable (net cash position) | Other Information Dividends and Securities Transactions The Board resolved not to declare an interim dividend for the six months ended June 30, 2025; during the period, neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities on the Stock Exchange - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[75] - During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[76] Employees and Remuneration Policy As of June 30, 2025, the company had 834 full-time employees, with 40.9% in health management; staff costs were RMB 74.9 million, and employees are incentivized through performance reviews, share option schemes, and various benefits Number of Employees by Function (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% | - As of June 30, 2025, staff costs paid by the company were RMB 74.9 million, a decrease compared to RMB 86.6 million in the prior year[77] Equity Disclosure Disclosed interests and short positions of directors, chief executives, and major shareholders in the company's shares as of June 30, 2025, including Dr. Liu Jiren, Ms. Zong Wenhong, Dr. Wang Nan, Neusoft (Hong Kong), PICC Property and Casualty, and other key shareholders' holdings Directors' and Chief Executive's Interests Directors' and Chief Executive's Interests in the Company's Shares (As of June 30, 2025) | Director Name | Nature of Interest | Number and Class of Securities | Approximate % of Company's Interest | | :--- | :--- | :--- | :--- | | Dr. Liu Jiren | Interest in controlled corporation | 193,252,305 ordinary shares(L) | 22.95% | | Ms. Zong Wenhong | Interest in controlled corporation | 21,004,500 ordinary shares(L) | 2.49% | | | Beneficial owner | 14,500,000 ordinary shares(L) | 1.72% | | Dr. Wang Nan | Interest in controlled corporation | 21,004,500 ordinary shares(L) | 2.49% | Major Shareholders' Interests Major Shareholders' Interests in the Company's Shares (As of June 30, 2025) | Shareholder Name/Entity | Nature of Interest | Number of Shares Held | Approximate % of Company's Interest | | :--- | :--- | :--- | :--- | | Neusoft (Hong Kong) | Beneficial interest | 206,206,710(L) | 24.49% | | Smartway | Beneficial interest | 81,364,000(L) | 9.66% | | Neusoft Holdings International V | Beneficial interest | 68,384,305(L) | 8.12% | | PICC Property and Casualty | Beneficial interest | 101,653,000(L) | 12.07% | | Jingjian Venture Capital | Beneficial interest | 86,700,000(L) | 10.30% | | First Care | Beneficial interest | 64,728,790(L) | 7.69% | | Syn Invest | Beneficial interest | 42,500,000(L) | 5.05% | Share Option Schemes The company has Pre-IPO and Post-IPO Share Option Schemes to incentivize employees; as of the reporting period, 63,140,000 Pre-IPO options remained unexercised, and 25,473,000 Post-IPO options were unvested and unexercised Pre-IPO Share Option Scheme - The Pre-IPO Share Option Scheme's total shares shall not exceed 81,600,000 shares, approximately 9.69% of the issued share capital at period-end[95] - As of June 30, 2025, 63,140,000 share options were granted, all unexercised, with an exercise price of USD 0.588 per share[109][110] Post-IPO Share Option Scheme - The Post-IPO Share Option Scheme's total limit shall not exceed approximately 10% (84,187,680 shares) of the issued shares[119] - As of June 30, 2025, 25,473,000 share options were granted, all unvested and unexercised[125][128] - Ms. Zong Wenhong was granted 4,000,000 share options, with an exercise price of HKD 1.14[128] Use of Proceeds from Global Offering Disclosed the specific use of net proceeds from the global offering, approximately HKD 554.5 million, and actual usage as of June 30, 2025, primarily for expanding the cloud hospital platform, enriching products, R&D, potential M&A, and working capital; idle funds were also used for wealth management products Use of Proceeds from Global Offering and Usage (As of June 30, 2025) | Use of Proceeds | Percentage of Proceeds | Net Proceeds (HKD millions) | Unused Amount as of Jan 1, 2025 (HKD millions) | Amount Used for Six Months Ended June 30, 2025 (HKD millions) | Unused Amount as of June 30, 2025 (HKD millions) | Expected Full Utilization Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Expand City Cloud Hospital Platform | 30% | 166.3 | 150.1 | 13.9 | 136.2 | As of December 31, 2028 | | Enrich Industry Value Chain Products | 25% | 138.6 | 128.5 | 6.4 | 122.1 | As of December 31, 2028 | | R&D for Technology Infrastructure and Data Capabilities | 25% | 138.6 | 117.7 | 19.7 | 98.0 | As of December 31, 2028 | | Potential M&A Opportunities | 10% | 55.5 | 55.5 | 0.0 | 55.5 | As of December 31, 2028 | | Working Capital and Other General Corporate Purposes | 10% | 55.5 | 44.7 | 7.7 | 37.0 | As of December 31, 2028 | - The company resolved to use no more than USD 40 million of idle proceeds to purchase highly secure and liquid wealth management products for cash management[134] Corporate Governance and Compliance During the reporting period, the company had no material litigation or arbitration and fully complied with the Model Code for Securities Transactions by Directors and the Corporate Governance Code in Appendix C3 of the Listing Rules; board changes included Dr. Chen Lianyong's resignation as non-executive director and Dr. Qi Guoxian's appointment to the Audit Committee, with the M&A and Articles of Association revised to comply with Listing Rules - During the reporting period, the company had no material litigation or arbitration[135] - The company fully complied with the Model Code for Securities Transactions by Directors and the Corporate Governance Code contained in Appendix C3 of the Listing Rules[136][138] - Dr. Chen Lianyong resigned as a Non-executive Director and from related committee positions, and Dr. Qi Guoxian was appointed as a member of the Audit Committee[139] - The company revised and restated its Memorandum and Articles of Association to comply with the Listing Rules' amendments related to the paperless listing mechanism[141] Events After Reporting Period Subsequent to the reporting period, on July 21, 2025, the company granted a total of 28,990,000 share options under the Post-IPO Share Option Scheme to 236 eligible participants, including Executive Director and CEO Ms. Zong Wenhong, at an exercise price of HKD 0.904 per share - On July 21, 2025, the company granted 28,990,000 share options to 236 eligible participants, with an exercise price of HKD 0.904 per share[142] - Ms. Zong Wenhong was granted 5,000,000 share options[142] Review and Acknowledgements The company's Audit Committee reviewed and approved this interim report; the interim financial information was reviewed by Ernst & Young in accordance with Hong Kong Review Engagements Standards; the company maintains sufficient public float and extends gratitude to all employees, management, shareholders, customers, and business partners - The Audit Committee reviewed and approved this interim report[144] - The interim financial information was reviewed by Ernst & Young in accordance with Hong Kong Standard on Review Engagements 2410[145] - The company maintains sufficient public float and extends gratitude to all stakeholders[146][147] Independent Review Report - Ernst & Young has reviewed the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410[149] - The review concluded that nothing has come to their attention that causes them to believe the interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[150] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30, 2025) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 178,605 | 179,214 | | Cost of Sales | (139,292) | (136,658) | | Gross Profit | 39,313 | 42,556 | | Selling and Distribution Expenses | (31,008) | (37,345) | | Research and Development Expenses | (19,570) | (21,270) | | Administrative Expenses | (43,268) | (43,727) | | Net Reversal of Impairment Losses on Financial and Contract Assets | 7,781 | (3,619) | | Other Income | 3,293 | 12,831 | | Other Expenses | (866) | – | | Net Other Gains | 4,921 | 417 | | Finance Income | 5,715 | 8,498 | | Finance Costs | (11,933) | (14,041) | | Share of Loss of Associates | (4,670) | (4,927) | | Loss Before Tax | (50,292) | (60,627) | | Income Tax Credit | 317 | 143 | | Loss for the Period | (49,975) | (60,484) | | Total Comprehensive Loss for the Period | (52,551) | (56,348) | | Loss Per Share Attributable to Ordinary Equity Holders of the Parent (RMB) | (0.06) | (0.07) | Condensed Consolidated Statement of Financial Position Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | | | | Property, Plant and Equipment | 28,218 | 31,684 | | Right-of-use assets | 53,430 | 60,689 | | Investments in associates | 85,330 | 169,559 | | Total non-current assets | 238,175 | 280,525 | | Current Assets | | | | Trade receivables | 87,799 | 101,974 | | Financial assets at fair value through profit or loss | 181,167 | 36,842 | | Cash and cash equivalents | 490,789 | 760,857 | | Total current assets | 872,477 | 979,909 | | Current Liabilities | | | | Trade payables | 162,721 | 201,137 | | Interest-bearing bank borrowings | 463,606 | 510,305 | | Total current liabilities | 731,160 | 831,430 | | Equity | | | | Total equity | 324,892 | 368,122 | Condensed Consolidated Statement of Changes in Equity Condensed Consolidated Statement of Changes in Equity (For the Six Months Ended June 30, 2025) | Metric | Share Capital (RMB thousands) | Share Premium (RMB thousands) | Reserves (RMB thousands) | Accumulated Losses (RMB thousands) | Total Attributable to Owners of Parent (RMB thousands) | Non-controlling Interests (RMB thousands) | Total Equity (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | December 31, 2024 (Audited) | 1,125 | 2,543,431 | 359,083 | (2,540,330) | 363,309 | 4,813 | 368,122 | | Loss for the period | – | – | – | (48,886) | (48,886) | (1,089) | (49,975) | | Other comprehensive loss for the period (Exchange differences) | – | – | (2,576) | – | (2,576) | – | (2,576) | | Acquisition of non-controlling interests | – | – | (1,038) | – | (1,038) | (1,212) | (2,250) | | Share-based payments | – | – | 11,566 | – | 11,566 | 5 | 11,571 | | June 30, 2025 (Unaudited) | 1,125 | 2,543,431 | 367,035 | (2,589,216) | 322,375 | 2,517 | 324,892 | Condensed Consolidated Statement of Cash Flows Condensed Consolidated Statement of Cash Flows (For the Six Months Ended June 30, 2025) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash flows used in operating activities | (49,961) | (64,306) | | Net cash flows used in investing activities | (147,517) | (6,519) | | Net cash flows used in financing activities | (70,843) | (33,783) | | Net decrease in cash and cash equivalents | (268,321) | (104,608) | | Cash and cash equivalents at beginning of period | 760,857 | 676,794 | | Cash and cash equivalents at end of period | 490,789 | 575,930 | Notes to the Condensed Consolidated Financial Information General Information and Accounting Policies This section outlines the company's registration, primary business scope (medical, nursing, health management services), and confirms that the interim financial information is prepared under HKAS 34, with consistent accounting policies, and HKAS 21 (Revised) had no material impact - The company primarily engages in medical services, nursing services, and health management services in China[162] - The interim financial information is prepared under HKAS 34, with consistent accounting policies, and the newly revised HKAS 21 had no impact on the Group[163][164][165] Operating Segment Information Operating segment information for the six months ended June 30, 2025, and 2024, is provided, segmented by medical, nursing, and health management services, including external customer sales, cost of sales, segment gross profit, and reconciliation to loss before tax Operating Segment Information (For the Six Months Ended June 30, 2025) | Segment | Medical Services (RMB thousands) | Nursing Services (RMB thousands) | Health Management Services (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Sales to external customers | 69,827 | 34,624 | 74,154 | 178,605 | | Cost of sales | (60,521) | (28,023) | (50,748) | (139,292) | | Segment gross profit | 9,306 | 6,601 | 23,406 | 39,313 | Revenue and Other Income Detailed analysis of customer contract revenue composition, segmented by geographic market (Mainland China) and revenue recognition timing (at a point in time or over time), along with other income sources like government grants and wealth management product returns Disaggregation of Revenue from Contracts with Customers (For the Six Months Ended June 30, 2025) | Timing of revenue recognition | Medical Services (RMB thousands) | Nursing Services (RMB thousands) | Health Management Services (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | At a point in time | 67,210 | 34,500 | 74,009 | 175,719 | | Over time | 2,617 | 124 | 145 | 2,886 | Other Income Analysis | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Government grants | 1,620 | 7,732 | | Investment return from wealth management products | 1,568 | 4,872 | | Total | 3,293 | 12,831 | Components of Loss Before Tax Detailed adjustments leading to loss before tax are presented, including depreciation and amortization, share-based payments, employee benefit expenses, and net reversal of impairment losses on financial and contract assets, reflecting operating costs and non-cash expenses Adjustments to Loss Before Tax (For the Six Months Ended June 30, 2025) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss Before Tax | (50,292) | (60,627) | | Depreciation and amortization | 14,977 | 15,214 | | Share-based payments | 11,571 | 9,182 | | Total employee benefit expenses | 86,439 | 95,763 | | Net reversal of impairment losses on financial and contract assets | (7,781) | 3,619 | Finance Income and Costs Finance income and costs for the six months ended June 30, 2025, are disclosed, with interest income of RMB 5.715 million and total finance costs of RMB 11.933 million, primarily from bank borrowings and lease liabilities Finance Income and Costs (For the Six Months Ended June 30, 2025) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | 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) | | Total finance costs | (11,933) | (14,041) | Income Tax During the reporting period, the company had no Hong Kong profits tax provision; Mainland China corporate income tax is 25%, with a high-tech subsidiary enjoying a 15% preferential rate, resulting in a total income tax credit of RMB 317 thousand - Mainland China corporate income tax is 25%, with a high-tech subsidiary enjoying a 15% preferential tax rate[174] Income Tax Credit Analysis (For the Six Months Ended June 30, 2025) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current - Mainland China | 1,028 | 306 | | Deferred | (1,606) | (465) | | Total income tax credit | (317) | (143) | Loss Per Share For the six months ended June 30, 2025, basic and diluted loss per share attributable to ordinary equity holders of the parent was RMB 0.06, an improvement from RMB 0.07 in the prior year Loss Per Share (For the Six Months Ended June 30, 2025) | Metric | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic and diluted loss per share | (0.06) | (0.07) | - Issued share options had an anti-dilutive effect on basic loss per share, thus no dilutive adjustment was made[176] Asset Details Detailed disclosure of the company's asset balances and changes during the period, including property, plant and equipment, right-of-use assets, investments in associates, equity investments at fair value, long-term trade receivables, other receivables, trade receivables, other current assets, and financial assets at fair value through profit or loss Property, Plant and Equipment - For the six months ended June 30, 2025, the company's total cost of asset acquisitions was RMB 1.201 million, and the total book value of assets disposed was RMB 0.593 million[178] Right-of-Use Assets - For the six months ended June 30, 2025, the company's total cost of right-of-use asset acquisitions was RMB 5.426 million, and the net gain from termination of assets was RMB 0.103 million[179] Investments in Associates Changes in Investments in Associates | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Beginning balance | 169,559 | 186,993 | | Disposal of partial equity interest in an associate | (79,559) | – | | Ending balance | 85,330 | 169,559 | - The company disposed of a portion of Dalian Yunshe's equity, reducing its shareholding from approximately 11.83% to 7.15%, losing significant influence, and reclassifying it as an equity investment at fair value[180] Equity Investments Designated at Fair Value Through Other Comprehensive Income Equity Investments Designated at Fair Value | Investee Company | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Dalian Yunshe | 54,018 | – | Long-Term Trade Receivables Net Carrying Amount of Long-Term Trade Receivables | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net carrying amount | 3,314 | 5,860 | Other Receivables Other Receivables (Current) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Receivable for equity transfer | 45,310 | 15,310 | | Total | 65,608 | 35,309 | Trade Receivables Net Carrying Amount of Trade Receivables | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net carrying amount | 87,799 | 101,974 | Changes in Impairment Loss Provision for Trade Receivables | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Impairment loss (reversal) / recognized | (11,144) | 6,892 | Other Current Assets Other Current Assets | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Deductible input VAT | 3,205 | 219 | | Long-term trade receivables due within one year | 3,342 | 7,654 | | Total | 6,547 | 7,873 | Financial Assets at Fair Value Through Profit or Loss Financial Assets at Fair Value | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Investment in wealth management products | 181,167 | 36,842 | - Wealth management product investment return was RMB 1.568 million, and net fair value gain was RMB 0.592 million[193] Liability Details Detailed disclosure of the company's liability balances and composition, including trade payables and interest-bearing bank borrowings; trade payables decreased, total interest-bearing bank borrowings slightly reduced, but fixed-rate borrowings increased as a proportion Trade Payables Aging Analysis of Trade Payables (As of June 30, 2025) | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 56,054 | 99,535 | | Total | 162,721 | 201,137 | Interest-Bearing Bank Borrowings Interest-Bearing Bank Borrowings (As of June 30, 2025) | Interest rate type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Fixed rate | 344,361 | 180,187 | | Variable rate | 119,245 | 330,118 | | Total | 463,606 | 510,305 | - Approximately RMB 390 million of secured bank loans were guaranteed by the company's shareholders, Dalian Neusoft Holdings Co., Ltd. and Xikang Technology[196] Notes to the Consolidated Cash Flow Statement Detailed reconciliation from loss before tax to cash used in operating activities, including non-cash items like depreciation and amortization, share-based payments, and reversal of impairment on financial and contract assets, as well as working capital changes Adjustments to Cash Flow from Operating Activities (For the Six Months Ended June 30, 2025) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss Before Tax | (50,292) | (60,627) | | Depreciation and amortization | 14,977 | 15,214 | | Share-based payments | 11,571 | 9,182 | | Financial and contract assets (reversal of provision) / provision | (7,781) | 3,619 | | Cash used in operations | (52,376) | (66,726) | Related Party Transactions Disclosed related party transactions during the reporting period, including purchases and provision of services, lease contracts, bank loan guarantees, equity transfers, and key management personnel remuneration, along with outstanding related party balances at period-end Transactions During the Period Related Party Transactions During the Period (For the Six Months Ended June 30, 2025) | Transaction type | Related party | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Purchase of technical, maintenance and other services | Neusoft Corporation and its subsidiaries | 905 | 967 | | Provision of health management services | Neusoft Corporation, its subsidiaries and associates | 1,650 | 1,456 | | Provision of health management services | Neusoft Holdings | 191 | 131 | | Provision of health management services | PICC Property and Casualty and its subsidiaries | 31 | 32 | Other Transactions - The Group's shareholders provided guarantees for certain bank loan principals obtained by the Group, not exceeding RMB 390 million[203] - The company sold a portion of its associate Dalian Yunshe's equity to a related party and acquired a 10% equity interest in Dandong Xikang Fenghuang Clinic Co., Ltd[203] Outstanding Balances Outstanding Balances with Related Parties (As of June 30, 2025) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables | 5,429 | 5,970 | | Other receivables | 30,901 | 1,024 | | Trade payables | 17,988 | 19,650 | | Lease liabilities | 10,702 | 14,720 | Key Management Personnel Remuneration Key Management Personnel Remuneration (For the Six Months Ended June 30, 2025) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Salaries, wages and bonuses | 1,544 | 1,421 | | Share-based payments | 2,470 | 5,274 | | Total remuneration paid to key management personnel | 4,205 | 6,788 | Fair Value and Fair Value Hierarchy of Financial Instruments Disclosed the carrying amounts and fair values of the company's financial instruments, detailing fair value measurement methods and hierarchy (primarily Level 3), and changes in Level 3 fair value measurements during the period Carrying Amounts and Fair Values of Financial Assets (As of June 30, 2025) | Item | Carrying Amount as of June 30, 2025 (RMB thousands) | Fair Value as of June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | | Equity investments designated at fair value | 54,018 | 54,018 | | Financial assets at fair value through profit or loss | 181,167 | 181,167 | | Total | 244,823 | 244,704 | - Fair value measurement of financial instruments primarily uses recent transaction methods and discounted cash flow valuation models, with most classified as Level 3[208][209][210] Events After the Reporting Period Subsequent to the reporting period, on July 21, 2025, the company granted 28,990,000 share options to 236 employees under the employee incentive scheme, with an exercise price of HKD 0.904 per share, subject to service and performance conditions for vesting - On July 21, 2025, the company granted 28,990,000 share options to 236 employees, with an exercise price of HKD 0.904 per share[213] Approval of Financial Statements The condensed consolidated interim financial information was approved and authorized for issue by the Board of Directors on August 27, 2025 - The condensed consolidated interim financial information was approved and authorized for issue by the Board of Directors on August 27, 2025[214] Definitions Provides definitions for key terms and abbreviations used in the report, such as '2016 Restricted Share Unit Scheme,' 'the Company,' 'the Group,' and 'Pre-IPO Share Option Scheme' - Provides definitions for key terms and abbreviations used in the report, such as '2016 Restricted Share Unit Scheme,' 'the Company,' 'the Group,' and 'Pre-IPO Share Option Scheme'[216][217][219]