Financial Performance - In 2022, the Group's consolidated revenue was RMB1,845.6 million, a year-on-year decrease of 5.5% from RMB1,953.9 million in 2021, primarily due to a 6.4% drop in revenue from hospital services[9]. - The Group's consolidated profit for the Reporting Period was RMB27.7 million, a year-on-year decrease of 58.6% from RMB66.9 million in 2021, primarily due to lower revenue and profit from Kanghua Hospital and Renkang Hospital[12]. - The overall operating margin decreased from 18.1% to 14.2% during the Reporting Period[12]. - Adjusted EBITDA decreased by 30.0% to RMB215.8 million, down from RMB308.1 million in 2021, indicating that the Group's core operations remained profitable[19]. - The Group's total revenue for the year was RMB 1,845.6 million, a decrease of 6.4% compared to RMB 1,953.9 million in the previous year, accounting for 93.3% of total revenue[85]. - Revenue from inpatient healthcare services decreased by 14.1% to RMB 927.1 million, representing 50.2% of total revenue, down from 55.3% in the previous year[86]. - Revenue from outpatient healthcare services increased by 3.9% to RMB 640.7 million, accounting for 34.7% of total revenue, up from 31.6% in the previous year[86]. - Revenue from physical examination services rose by 7.4% to RMB 153.7 million, representing 8.3% of total revenue, compared to 7.3% in the previous year[86]. - The cost of revenue for rehabilitation and other healthcare services increased by 9.1% to RMB 93.0 million, in line with the revenue growth for the year[91]. - The overall average patient spending from inpatient healthcare services decreased, contributing to the decline in gross profit[4]. Revenue Segmentation - Revenue from rehabilitation and other related healthcare services increased by 10.1% to RMB111.7 million, up from RMB101.5 million in 2021[11]. - Revenue from rehabilitation hospital operations rose by 30.0%, driven by higher patient intake and expansion of the rehabilitation centre network[11]. - The hospital services segment recorded revenue of RMB1,721.5 million, a year-on-year decrease of 6.4%, with Kanghua Hospital and Renkang Hospital experiencing revenue declines of 8.0% and 4.2%, respectively[16]. - Kangxin Hospital, however, saw a significant revenue increase of 41.8% compared to 2021[16]. - The elderly healthcare services segment achieved revenue of RMB12.5 million, a year-on-year growth of 1.8% from RMB12.2 million in 2021, attributed to the maturation of operations since its opening in 2019[13]. - Revenue from VIP healthcare services decreased by 13.5% to RMB86.9 million compared to RMB100.5 million in 2021 due to the impact of the pandemic[41]. - Revenue from rehabilitation hospital and other healthcare services increased by 30.0% to RMB53.1 million in 2022, up from RMB40.8 million in 2021, driven by growth in rehabilitation patient visits[43]. - Revenue from rehabilitation centers and other services slightly decreased by 3.4% to RMB58.6 million in 2022, down from RMB60.7 million in 2021[43]. Strategic Developments - The Group is developing the Kanghua Qingxi Healthcare Complex, with a total construction area of over 130,000 square meters, featuring 500 inpatient beds and around 800 nursing and rehabilitation beds[9]. - The first phase of the Kanghua Qingxi Healthcare Complex is expected to commence operations by March 2025[9]. - The Group's strategic partnership with Yingshan Capital aims to introduce international management experience and expertise to improve hospital operations[7]. - The Group plans to enhance smart hospital construction and expand internet healthcare services to improve patient consultation and treatment convenience[14]. - The Group aims to optimize healthcare services and improve operational efficiency in 2023, focusing on core business and stakeholder relationships[14]. - The Group's rehabilitation and other healthcare services segments recorded a revenue increase of 10.1%[16]. - Kanghua Hospital aims to pass the Class III Grade A re-evaluation by the end of 2023, focusing on seven aspects including hospital management and medical safety[22]. - Renkang Hospital is working towards obtaining a secondary qualification by the end of 2023, enhancing medical quality control and service levels[28]. Market Trends and Future Outlook - The overall growth of the healthcare industry for the elderly is anticipated to be a major trend in the future, with the Group actively preparing for relevant evaluations and qualifications[9]. - The surge in COVID-19 cases at the end of 2022 presented both threats and opportunities, with the government increasing medical clinics and promoting online medical services[16]. - The Chinese healthcare market is transitioning to a "post-pandemic" era in 2023, presenting opportunities for restructuring and upgrading in the pharmaceutical and medical sectors[53]. - By the end of 2024, all regions in China are expected to implement DRG/DIP payment method reform, which aims to alleviate pressure on the healthcare security fund[56]. - The demand for consumption health is driven by an aging population and increased health awareness post-COVID-19, with sub-sectors like ophthalmology and medical aesthetics showing significant growth potential[60]. - The healthcare industry is undergoing reforms aimed at improving resource allocation and efficiency, including medical insurance reforms and the promotion of private healthcare services[74]. Operational Efficiency and Cost Management - The Group plans to enhance smart hospital construction and expand internet healthcare services to improve patient consultation and treatment convenience[14]. - The average bed occupancy rate at Renkang Elderly Care Centre was 86.1% in 2022, with revenue from elderly medical services increasing by 1.8% to RMB12.5 million[50]. - Staff-related costs increased by 9.8% compared to 2021, reflecting rising salary levels and competition for medical professionals[3]. - Administrative expenses increased to RMB 228.3 million, a 1.4% rise from RMB 225.2 million in 2021, mainly due to increased staff costs[102]. - The overall repair and maintenance expenditure significantly decreased to RMB 16.2 million from RMB 27.7 million in 2021[102]. - The Group's management closely monitors the credit quality of accounts receivable, with no overdue or impaired debts reported[139]. Investment and Financial Position - The Group's investments classified as financial assets at FVTPL totaled RMB572.4 million as of December 31, 2022, down from RMB603.3 million in 2021[132]. - The Group's fund investment increased to RMB18.0 million in 2022 from RMB10.0 million in 2021, indicating growth in equity investments in unlisted companies[132]. - The Group expects to maintain adequate liquidity and financial resources to meet working capital requirements for at least the next twelve months[132]. - The Group's capital expenditure during the reporting period was RMB 168.0 million, slightly down from RMB 169.3 million in 2021[180]. - The total unutilized net proceeds from the IPO as of December 31, 2022, amounted to RMB 410.8 million, with part used for purchasing financial products to achieve higher interest income[175]. - The Group's investment strategy includes low-risk structured deposit products and portfolio investment funds to maximize returns on idle cash without affecting operations[136]. - The Group's capital expenditures are primarily financed through cash flows generated from operating activities and bank loans[180]. - The company secured a total of RMB620.0 million in new bank loans for the development of Kangxin Hospital's Phase II medical facilities, with RMB345.4 million drawn down by December 31, 2022[188]. Compliance and Sustainability - The company is committed to environmental protection and sustainable development, adhering to national and local environmental laws and regulations in the PRC[200]. - The company has engaged qualified third parties for the proper disposal of medical wastes in compliance with applicable laws and regulations[200].
康华医疗(03689) - 2022 - 年度财报