New Journey(SZ:002219)2019-05-15 16:00Business Model and Strategy - The company reported a shift from a single pharmaceutical manufacturing business to a dual-driven "big health" industry model, focusing on both medical services and pharmaceutical manufacturing [22]. - The company has developed a dual-driven strategy in the healthcare industry, focusing on both medical services and pharmaceutical manufacturing [38]. - The company aims to enhance its healthcare services and pharmaceutical R&D, focusing on major chronic diseases and high-end maternal and child health services [98]. - The company plans to implement a dual-driven strategy in 2019, balancing basic and non-basic healthcare services while exploring new high-end health services [99]. - The company is focused on enhancing its drug development capabilities and improving the quality of generic drugs [98]. - The company is committed to improving its operational management and resource allocation to strengthen its market position [101]. - The company recognizes the growing demand for diversified and personalized healthcare services due to urbanization and an aging population [98]. - The company will leverage its hospital network to create a comprehensive health management system covering all life stages [101]. - The company is focused on technological innovation in the medical and pharmaceutical sectors, aiming to build a translational medicine platform and enhance its capabilities in medical data resources [103]. Financial Performance - The company's operating revenue for 2018 was ¥3,838,392,197.48, representing a 12.92% increase compared to the previous year [6]. - The net profit attributable to shareholders was -¥1,417,817,723.30, a decrease of 799.09% year-on-year [6]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥1,395,854,132.33, a decline of 826.17% compared to the previous year [6]. - The total profit for the year was CNY -1,333.91 million, a year-on-year decrease of 536.19% [61]. - The company reported a net loss of approximately ¥1.42 billion for 2018, compared to a net profit of ¥202.81 million in 2017 [117]. - The company reported a significant increase in cash flow from operating activities in the second quarter, amounting to ¥203,061,444.52 [29]. - The company reported a net loss of ¥1,388,000,000 in 2018, with a significant difference from the net cash flow from operating activities of ¥522,565,203.01, primarily due to non-operating cash factors [82]. - The company has committed to transparency and accuracy in its financial disclosures, taking legal responsibility for any misstatements [129]. Investment and Dividends - The company plans not to distribute cash dividends or issue bonus shares, indicating a focus on reinvestment [7]. - The company did not distribute any cash dividends for the years 2016, 2017, and 2018, citing significant funding needs for acquisitions and projects [113][118]. - The cash dividend policy has been clearly defined, with no cash dividends or stock bonuses proposed for the past three years [114]. - The company plans to retain all earnings for future investments and operational needs, reflecting a focus on growth rather than immediate shareholder returns [113][118]. - The company has established a three-year shareholder return plan, prioritizing cash dividends over stock dividends to ensure reasonable returns for investors [111]. Operational and Market Expansion - The company operates a total of 1 tertiary hospital, 7 secondary or higher comprehensive hospitals, and 5 hospitals under construction, indicating ongoing expansion in medical services [38]. - The company operates 15 hospitals with 8,700 open beds, serving over 3.5 million outpatient visits and 260,000 inpatient discharges annually, leveraging significant clinical resources for healthcare services [44]. - The company expanded its market presence by adding 3,500 new retail pharmacies and 800 user hospitals during the reporting period [61]. - The company is focused on expanding its market presence through strategic partnerships with healthcare institutions [176]. Risk Management - The company has detailed potential risks in its report, advising investors to maintain sufficient risk awareness [7]. - The company has identified potential risks, including policy changes in the healthcare sector, which may impact its operations and will take measures to mitigate these risks [107]. Corporate Governance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and senior management [5]. - The company’s independent directors have fulfilled their responsibilities, ensuring proper governance and protection of minority shareholders' rights [112]. - The company has a long-term commitment to transparency in its financial reporting and adherence to corporate governance standards [112]. - The company has committed to avoiding any competition with its controlling shareholder and related parties, ensuring alignment of interests [122]. Social Responsibility and Community Engagement - The company invested approximately 1,027.26 million in poverty alleviation efforts, with health-related poverty alleviation accounting for about 688.57 million [192]. - The company provided medical fee reductions of 113.11 million as part of its poverty alleviation initiatives, benefiting over 1,400 impoverished individuals [192]. - The company has focused on enhancing medical service quality and expanding its healthcare capabilities, contributing to both economic and social benefits [189]. - The company is committed to continuing its precise poverty alleviation plans in 2019, focusing on industrial and health poverty alleviation [197]. Legal and Compliance Issues - The lawsuit involving Pengsheng Heavy Industry and the Xuyi Hospital has a disputed amount of CNY 2.5 million, with the first-instance judgment already in effect [149]. - The performance commitment dispute case has a total performance shortfall of CNY 91.0349 million for the year 2017, with the defendant required to bear joint liability for the debt [152]. - The company is currently negotiating the payment of CNY 25.4765 million for equity transfer price, CNY 1.2 million for legal fees, and penalty fees as per the first-instance judgment [152]. - The first-instance court ruled that the Lan'ao County First Hospital must repay a loan of CNY 1.07813 million, with the case currently under appeal [152]. Environmental Compliance - The company has actively engaged in environmental protection, ensuring all facilities operate within regulatory standards [190]. - The company has complied with various environmental protection laws and has not faced penalties for violations during the reporting period [198].