IMIC(SZ:000516)2020-04-28 16:00Financial Performance - The company's operating revenue for 2019 was ¥990,952,681.25, a decrease of 51.41% compared to ¥2,039,345,793.66 in 2018[12]. - The net profit attributable to shareholders for 2019 was -¥403,930,095.11, representing a decline of 118.49% from ¥2,184,294,489.72 in 2018[12]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥468,766,710.35, a significant drop of 1,264.83% compared to -¥34,346,041.78 in 2018[12]. - The net cash flow from operating activities for 2019 was -34,324,017.47 CNY, a decrease of 95.55% compared to the previous year[13]. - The basic and diluted earnings per share for 2019 were both -0.21 CNY, representing a decline of 118.92% from 1.11 CNY in 2018[13]. - The weighted average return on equity was -7.48% in 2019, down 53.68% from 46.20% in 2018[13]. - Total assets increased by 37.29% to 10,031,088,456.30 CNY at the end of 2019, compared to 7,306,315,663.45 CNY at the end of 2018[13]. - Net assets attributable to shareholders decreased by 13.47% to 4,955,575,505.10 CNY in 2019 from 5,727,029,015.59 CNY in 2018[13]. - The total comprehensive loss for 2019 was CNY 412,523,147.28, compared to a comprehensive income of CNY 2,243,123,360.82 in 2018[183]. - The company reported a significant increase in management expenses to CNY 392,856,727.93 in 2019 from CNY 275,923,337.37 in 2018[181]. Strategic Transformation - The company has undergone a strategic transformation, shifting its main business focus from retail to healthcare services and modern medical technology applications since 2018[9]. - The company has been listed on the Shenzhen Stock Exchange since 1993, originally focusing on retail before transitioning to healthcare[9]. - The company is actively pursuing mergers and acquisitions to enhance its medical service network and improve operational efficiency[19]. - The company is focusing on the development of its main medical services, with an emphasis on innovation and collaboration across multiple disciplines to improve diagnosis and treatment of complex diseases[67]. - The company is actively exploring the integration of online and offline medical services through an "Internet + Medical" model to enhance core competitiveness and profitability[67]. Operational Developments - The company launched an internet hospital in partnership with Alibaba Health, accumulating nearly 100,000 user engagements since its launch[18]. - The company is expanding its medical services with new projects, including the Xi'an International Medical Center Hospital, which opened on September 25, 2019[18]. - The Xi'an International Medical High-tech Hospital achieved a revenue of ¥82,629.06 million in 2019, marking a 12.04% increase year-on-year, with a net profit of ¥11,719.41 million, up 11.17%[32]. - The total number of medical beds increased from over 1,300 to over 2,800 following the full opening of the Xi'an International Medical Center Hospital[30]. - The hospital's outpatient visits exceeded 1 million, a 9.61% increase year-on-year, while inpatient admissions reached over 43,000, up 8.69%[30]. Financial Management - The company did not distribute any cash dividends or bonus shares for the year, maintaining a base of 1,928,107,873 shares[2]. - The company repurchased a total of 42,941,429 shares, representing 2.18% of the total share capital, with a total payment of CNY 230,001,154.64[38]. - The company’s retained earnings available for distribution in 2019 amounted to ¥259,595.21 million[78]. - The company’s cash dividend total for 2019 represented 100% of the profit distribution total[78]. - The company has maintained a transparent and compliant process for any adjustments to its cash dividend policy[76]. Risk Management - The company has faced significant operational risks and challenges, which are detailed in the future outlook section of the report[1]. - The company aims to implement a comprehensive internal control system to mitigate operational risks and ensure sustainable development[68]. - The company faces risks related to medical service expansion, talent retention, and operational management, which it aims to mitigate through improved internal controls and risk education[72]. Research and Development - The company is actively pursuing research and development, having published 15 articles and applied for 9 patents in 2019[34]. - Research and development expenses surged by 405.85% to CNY 7,684,162.96, attributed to increased spending by a subsidiary[45]. Governance and Compliance - The company has established a robust governance structure in compliance with relevant laws and regulations, ensuring the protection of shareholder rights[142]. - The audit committee reviewed the company's 2019 financial statements and confirmed they were prepared in accordance with new accounting standards, accurately reflecting the company's financial position as of December 31, 2019[150]. - The annual audit report issued by Sigma CPA on April 27, 2020, provided a standard unqualified opinion, indicating that the financial statements fairly represented the company's financial status and performance for 2019[151]. Market Outlook - The national health service industry is projected to exceed 8 trillion yuan by 2020 and reach 16 trillion yuan by 2030, indicating a favorable market outlook for the company[23]. - The health industry is expected to become a significant pillar of the national economy, driven by increasing demand for long-term medical resources due to an aging population and rising chronic disease burdens[66].