通策医疗(600763) - 2021 Q2 - 季度财报

Definitions This section provides definitions of key terms and abbreviations used throughout the report Company Profile and Key Financial Indicators This section provides an overview of the company and its key financial performance indicators for the reporting period Company Profile Tongce Medical Co., Ltd. is a Shanghai Stock Exchange-listed company (stock code 600763) with Lu Jianming as its legal representative - Company basic information: Tongce Medical Co., Ltd. (Stock Code: 600763), Legal Representative: Lu Jianming[9][13] Key Accounting Data and Financial Indicators In H1 2021, the company achieved strong performance with significant growth in revenue and net profit, alongside improved profitability metrics 2021 H1 Key Accounting Data | Key Accounting Data | Current Period (Jan-Jun) | Prior Period | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,317,500,074.29 Yuan | 753,664,283.89 Yuan | 74.81% | | Net Profit Attributable to Shareholders of Listed Company | 350,772,376.57 Yuan | 145,454,127.46 Yuan | 141.16% | | Net Cash Flow from Operating Activities | 332,513,305.49 Yuan | 144,355,199.03 Yuan | 130.34% | | Indicator | Period-End | Prior Year-End | Change from Prior Year-End (%) | | Net Assets Attributable to Shareholders of Listed Company | 2,501,548,262.03 Yuan | 2,150,129,168.45 Yuan | 16.34% | | Total Assets | 3,877,910,061.79 Yuan | 3,064,401,785.36 Yuan | 26.55% | 2021 H1 Key Financial Indicators | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 1.09 | 0.45 | Increased by 142.22% | | Diluted Earnings Per Share (Yuan/share) | 1.09 | 0.45 | Increased by 142.22% | | Weighted Average Return on Net Assets (%) | 15.08% | 7.78% | Increased by 7.30 percentage points | - During the reporting period, the company's total non-recurring gains and losses amounted to 9.078 million Yuan, primarily from government subsidies and fund occupation fees collected from non-financial enterprises[16] Management Discussion and Analysis This section provides a comprehensive discussion and analysis of the company's industry, core competencies, operating performance, and potential risks Industry and Main Business Overview The company operates as a large dental medical group with a 'regional general hospital + branch' model, benefiting from favorable policies and consumption upgrades - The company's main business is medical services, aiming to build a large-scale dental medical group integrating clinical, scientific research, and teaching, currently operating over 50 dental medical institutions[19] - The company's core operating model is 'regional general hospital + branch', establishing leading general hospitals in regions to support branch network expansion, rapidly building brand influence and market share[20] - The industry benefits from national policy support, including the 'Healthy Oral Action Plan (2019-2025)', encouraging private dental institutions to participate in oral disease prevention and treatment, with specialties like implantology, orthodontics, and pediatrics expected to grow[26][27] Core Competitiveness Analysis The company's core strengths lie in its talent resources, differentiated technology, unique management model, and patient-centric service approach - Talent Advantage: Relying on collaborations with institutions like the University of Chinese Academy of Sciences and Zhejiang University, forming high-level doctor groups, and developing Hangzhou Medical College to ensure talent supply[29] - Technological Advantage: Implementing a team consultation model, breaking down departmental barriers, and integrating multi-disciplinary experts to serve the same patient, forming a differentiated technological advantage[30] - Management Advantage: Implementing the 'general hospital + branch' model to reduce marketing costs and ensure service quality, and incentivizing and retaining core talent through the 'doctor group' model[31] - Service Advantage: Core philosophy is 'customer value-centric', focusing on meeting patients' explicit and implicit physiological and psychological needs, driving organizational innovation[33] Discussion and Analysis of Operations In H1 2021, the company maintained high growth in revenue and net profit, driven by strong performance in Zhejiang province and key dental specialties Operating Performance The company achieved significant revenue and net profit growth in H1 2021 while maintaining effective cost control 2021 H1 Operating Performance | Indicator | 2021 H1 | Year-on-Year Growth | | :--- | :--- | :--- | | Operating Revenue | 1.3175 Billion Yuan | 74.81% | | Net Profit | 396.66 Million Yuan | 147.30% | - The company maintained reasonable control over operating costs, with selling, general and administrative, and financial expenses remaining at a relatively low overall level[39] Business Structure Zhejiang province remains the primary revenue driver, with strong growth in regional branches and all core dental specialties Medical Service Revenue Composition (Unit: 10,000 Yuan) | Region | Revenue H1 2021 | Proportion | Year-on-Year Growth Rate | | :--- | :--- | :--- | :--- | | Within Zhejiang Province | 112,827.65 | 90.25% | 72.34% | | Outside Zhejiang Province | 12,185.93 | 9.75% | 58.15% | Zhejiang Regional General Hospital vs. Branch Revenue Comparison (Unit: 10,000 Yuan) | Type | Revenue H1 2021 | Year-on-Year Growth Rate | | :--- | :--- | :--- | | Regional General Hospital (Hangzhou Oral) | 35,413.23 | 59.13% | | Regional Branches | 77,414.42 | 79.14% | Main Business Composition and Growth Analysis (Unit: 10,000 Yuan) | Business Type | Revenue H1 2021 | Revenue Proportion | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Implantology | 20,911.60 | 16.83% | 76.35% | | Orthodontics | 23,181.77 | 18.66% | 75.64% | | Pediatrics | 25,826.36 | 20.79% | 68.13% | | General Dentistry | 54,314.68 | 43.72% | 68.80% | Business Progress The company is actively expanding its national footprint through the 'Dandelion Plan' and new large-scale hospital constructions outside Zhejiang - The 'Dandelion Plan' is steadily progressing, with several hospitals in Taizhou, Lin'an, Jiaxing, and Wenzhou already operational[45] - Regarding out-of-province expansion, large dental hospitals in Wuhan, Chongqing, and Xi'an have commenced operations, and Chengdu Cunji Dental Hospital is expected to begin trial operations in H2 2021[45] Key Operating Conditions During the Reporting Period During the period, the company saw increased expenses aligned with revenue growth, adopted new leasing standards, and made strategic external investments Major Financial Item Changes | Item | Current Period Amount | Prior Period Amount | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,317,500,074.29 Yuan | 753,664,283.89 Yuan | 74.81% | | Operating Cost | 701,515,393.74 Yuan | 453,828,440.17 Yuan | 54.58% | | Selling Expenses | 11,274,946.63 Yuan | 6,250,290.65 Yuan | 80.39% | | R&D Expenses | 23,843,503.12 Yuan | 10,063,040.30 Yuan | 136.94% | | Net Cash Flow from Operating Activities | 332,513,305.49 Yuan | 144,355,199.03 Yuan | 130.34% | - Due to the adoption of new leasing standards, the company's balance sheet newly recognized 536 million Yuan in 'right-of-use assets' and 437 million Yuan in 'lease liabilities'[48] - During the reporting period, the company made external investments totaling 63.6 million Yuan for expansion and development[49] Potential Risks The company faces various risks including policy changes, medical incidents, talent shortages, challenges in cross-regional expansion, and intensified market competition - The company faces five major risks: policy risk, medical risk, talent shortage risk, cross-regional development risk, and competition risk[52][53][54] Corporate Governance This section outlines the company's corporate governance structure and activities during the reporting period Overview of Corporate Governance During the reporting period, the company held two shareholder meetings with all proposals approved, and no changes occurred in its board, supervisors, or senior management - A total of 2 shareholder meetings were held during the reporting period, with no proposals rejected[56] - No changes occurred in the company's directors, supervisors, or senior management[57] - There were no profit distribution or capital reserve capitalization plans for this half-year period[57] Environmental and Social Responsibility This section details the company's environmental protection efforts and social responsibility initiatives Environmental Information The company adheres to environmental regulations, has robust waste management systems, and reported no violations during the period - The company and its subsidiaries strictly complied with national environmental laws and regulations during the reporting period, with no reported violations of pollutant discharge[59] - Although subsidiary Huangshi Modern Dental Hospital Co., Ltd. was listed as a key pollutant discharge unit, local environmental authorities confirmed it is a general pollutant discharge unit with complete procedures and no illegal discharge records[59] - The company has established a comprehensive environmental management system, including 'Wastewater Treatment System' and 'Medical Waste Management System', for classified and compliant pollutant treatment[61] Significant Matters This section covers significant commitments, related party transactions, and major contracts impacting the company's operations Fulfillment of Commitments The company's controlling shareholder, actual controller, and related parties consistently fulfilled commitments regarding competition, related party transactions, and independence - The company's controlling shareholder, Baoqun Industrial, and actual controller, Mr. Lu Jianming, continued to fulfill long-term commitments made since 2006 regarding avoiding horizontal competition, standardizing related party transactions, and ensuring the listed company's independence[64] - Related party Haijun Technology committed to transferring its equity in Yiya Oral and Cunji Hospital to the listed company or an unrelated third party by May 22, 2024, to resolve potential horizontal competition issues[64][65] Significant Related Party Transactions The company engaged in various related party transactions, including operational dealings, acquisition performance commitments, and joint investments Related Party Transactions in Ordinary Operations (Partial) | Related Party | Related Transaction Content | Current Period Amount (Yuan) | | :--- | :--- | :--- | | Hangzhou Yiya Digital Oral Co., Ltd. | Purchase of Materials | 2,221,477.50 | | Zhejiang Tongce Eye Hospital Investment Management Co., Ltd. | Sale of Goods | 20,277,920.34 | | Zhejiang Tongce Eye Hospital Investment Management Co., Ltd. | Fund Occupation Fee | 7,712,611.11 | | Wuhan Cunji Dental Hospital Co., Ltd. | Management Service Fee | 702,442.16 | - Regarding the performance commitment for the acquisition of SanYe Children's Dental business, as of H1 2021, 9.004 million Yuan in net profit attributable to the listed company has been achieved, with a total committed amount of no less than 40 million Yuan for the 2021-2023 commitment period[72] Significant Contracts and Their Performance The company managed associated dental hospitals, entered into significant property leases, and provided guarantees for a subsidiary - The company is entrusted with managing several Cunji Dental Hospitals in Wuhan, Chongqing, and Xi'an, invested by related party dental medical funds, collecting a management fee of 2% of annual total operating revenue, with 1.0447 million Yuan in custody income recognized this period[75] - The company and its subsidiaries entered into multiple long-term property lease contracts for the operation of various dental hospitals and offices, ensuring stable business operations[77][78][79][80] - As of the end of the reporting period, the company's guarantee balance for its subsidiary Hangzhou Oral Hospital Group Co., Ltd. was 121.8 million Yuan, accounting for 4.87% of the company's net assets[81][82][84] Share Changes and Shareholder Information This section details changes in share capital and provides information on the company's shareholders Share Capital Changes and Shareholder Information The company's share capital structure remained unchanged, with Hangzhou Baoqun Industrial Group Co., Ltd. as the largest shareholder - During the reporting period, the company's total share capital and share capital structure remained unchanged[86] Top Five Shareholders' Shareholding | Shareholder Name | Shares Held at Period End | Proportion (%) | | :--- | :--- | :--- | | Hangzhou Baoqun Industrial Group Co., Ltd. | 108,232,000 | 33.75 | | Bao Zhengliang | 14,544,800 | 4.54 | | Hong Kong Securities Clearing Company Limited | 10,448,688 | 3.26 | | Industrial and Commercial Bank of China - CICC Medical & Healthcare Mixed Securities Investment Fund | 9,862,191 | 3.08 | | Zhejiang Cunji Medical Education Foundation | 9,619,200 | 3.00 | Preferred Shares Information This section confirms the absence of preferred shares for the company Preferred Shares The company has no preferred shares - Not applicable[90] Bonds Information This section confirms the absence of bonds for the company Bonds The company has no bonds - Not applicable[90] Financial Report This section presents the company's comprehensive financial statements and detailed notes for the reporting period Financial Statements This section presents the unaudited consolidated and parent company financial statements for H1 2021, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity Consolidated Balance Sheet As of June 30, 2021, the company's total assets increased by 26.55% to 3.88 billion Yuan, with a corresponding rise in total liabilities and owners' equity Consolidated Balance Sheet Key Items (As of June 30, 2021) | Item | Period-End Balance (Yuan) | Period-Beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 3,877,910,061.79 | 3,064,401,785.36 | | Total Liabilities | 1,133,725,427.19 | 716,016,706.49 | | Total Owners' Equity Attributable to Parent Company | 2,501,548,262.03 | 2,150,129,168.45 | Consolidated Income Statement In H1 2021, the company achieved a 74.81% increase in total operating revenue and a 141.16% increase in net profit attributable to parent company shareholders Consolidated Income Statement Key Items (H1 2021) | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 1,317,500,074.29 | 753,664,283.89 | | Total Operating Cost | 874,682,769.37 | 576,214,538.36 | | Total Profit | 466,063,358.71 | 198,002,890.01 | | Net Profit Attributable to Parent Company Shareholders | 350,772,376.57 | 145,454,127.46 | | Basic Earnings Per Share (Yuan/share) | 1.09 | 0.45 | Consolidated Cash Flow Statement Operating cash flow significantly increased by 130.34% in H1 2021, primarily due to higher cash receipts from sales and services Consolidated Cash Flow Statement Key Items (H1 2021) | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 332,513,305.49 | 144,355,199.03 | | Net Cash Flow from Investing Activities | -35,484,140.55 | -35,653,920.73 | | Net Cash Flow from Financing Activities | -128,217,379.65 | -67,504,891.39 | Notes to Financial Statements The notes detail the company's background, accounting policies, and significant financial statement items, including the impact of new leasing standards and changes in consolidation scope - The company adopted new leasing standards for the first time on January 1, 2021, adjusting relevant financial statement items at the beginning of the first year of adoption, primarily impacting accounts such as prepayments, right-of-use assets, long-term deferred expenses, non-current liabilities due within one year, and lease liabilities[192][193] - During the reporting period, the company's consolidation scope increased by 8 subsidiaries, primarily local dental clinics or hospitals, through new establishments and other means[113][311] Segment Information - Operating Revenue and Cost (H1 2021) | Item | Medical Service Revenue | Product Sales Revenue | Management Service Revenue | Inter-segment Elimination | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,271,979,302.47 Yuan | 115,398,669.45 Yuan | 6,298,437.57 Yuan | 80,335,036.93 Yuan | 1,313,341,372.56 Yuan | | Operating Cost | 674,335,270.00 Yuan | 94,422,836.02 Yuan | 4,293,870.06 Yuan | 71,834,393.98 Yuan | 701,217,582.10 Yuan |