Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 537.7 million, a decrease of 21.8% compared to RMB 687.4 million in 2022[12]. - Gross profit for the same period was RMB 164.6 million, with a gross margin of 30.6%, up 6.1 percentage points from 24.5% in 2022[11][12]. - Net loss for the year was RMB 154.9 million, a reduction of 36.3% from RMB 243.3 million in 2022[12]. - Revenue from the cloud hospital platform services was RMB 978 million, a decrease of 20.1% compared to RMB 1,224 million in the previous year[23]. - Internet medical services revenue reached RMB 157.6 million, an increase of 14.3% from RMB 137.8 million in the previous year[52]. - Health management services generated revenue of RMB 245.9 million, a 17.6% increase from RMB 209.2 million in 2022[55]. - Gross profit decreased by 2.3% to RMB 164.6 million from RMB 168.5 million year-on-year[64]. - Total revenue decreased by 21.8% to RMB 537.7 million in 2023 from RMB 687.4 million in 2022, primarily due to reduced income from cloud hospital platform services and smart healthcare products[87]. - Sales and service costs decreased by 28.1% to RMB 373.1 million in 2023 from RMB 519.0 million in 2022, aligning with the decline in revenue[91]. - Adjusted net loss decreased from RMB 146.9 million in 2022 to RMB 115.4 million in 2023, attributed to optimized business structure and reduced expenses[104]. - The company's net loss for the reporting period decreased by 36.3% from RMB 243.3 million for the year ended December 31, 2022, to RMB 154.9 million for the same period in 2023[127]. Business Expansion and Services - The company expanded its cloud hospital platform services, collaborating with provincial governments in Zhejiang, Jiangsu, and Henan to enhance healthcare service delivery[14][20]. - The "Yujian Nursing at Home" service platform in Henan province has onboarded 54 medical institutions and over 5,600 nurses with more than five years of clinical experience as of December 31, 2023[20]. - The company achieved a significant increase in the number of medical institutions on the "Zheli Nursing" platform, expanding from one city to 11 cities in Zhejiang province within a year, with over 570 institutions now participating[22]. - The company is focusing on optimizing its business structure and resource allocation to improve operational efficiency and service quality[12]. - The company is enhancing its supply chain system for pharmaceuticals, medical devices, and logistics through strategic partnerships in various provinces[15]. - The company aims to deepen its market presence in East, North, and South China, further expanding its cloud hospital platform network[18]. - The company is committed to driving innovation in home healthcare services, aligning with the growing demand for reliable and high-quality medical services in an aging society[14]. - The company launched 96 nursing service products, serving over 150,000 home care patients, indicating a healthy overall business development[30]. - The company actively promoted the establishment of standardized home care service protocols, leading to the development of multiple industry standards recognized by national health authorities[34]. - The company’s initiative "Zheli Nursing" was awarded as one of the "Top Ten Influential Events" in Zhejiang's health sector for 2023, highlighting its commitment to social responsibility[35]. - The company aims to enhance the efficiency of medical services through innovative service models, including self-service appointment systems and mobile payment options for patients[32]. - The cloud hospital platform strategy focuses on connecting local governments, medical institutions, patients, and insurance providers to improve the fairness of medical resource allocation[38]. - The company plans to continue its strategic model of the urban cloud hospital platform to better serve healthcare stakeholders and contribute to industry development in 2024[35]. - As of December 31, 2023, the company has established 45 internet hospitals in Ningbo, with 16,000 doctors and 11,000 nurses on the platform, serving over 1.5 million people in internet medical services[40]. - The company has focused on expanding its cloud hospital platform in cities like Chongqing and Nanning, investing in technology to improve functionality and user experience[41]. - The company continues to optimize its cloud hospital platform and enhance product experience to improve patient care efficiency[71]. Employee and Operational Metrics - The company employed 962 full-time employees as of December 31, 2023, with total employee compensation and benefits expenses amounting to RMB 193.5 million, a decrease from RMB 223.5 million in 2022[143]. - The number of nurses on the platform with over five years of clinical experience increased to 69,000 from 38,000 in the previous year[75]. - The number of paid medical institutions increased by 238.6% year-on-year, reaching 491 institutions compared to 145 in 2022[44]. - The number of institutional clients for health management services reached 7,441, with a retention rate of 78% in 2023, up from 68% in 2022[82]. - The company has integrated online and offline medical services, enhancing user experience and operational efficiency[46]. Financial Position and Cash Flow - Cash and cash equivalents as of December 31, 2023, amounted to RMB 676.8 million, with no significant additional external financing plans currently in place[131]. - The net cash inflow from financing activities for the year ended December 31, 2023, was RMB 504.8 million, mainly due to shareholder contributions of RMB 567.6 million[112]. - The total outstanding loan principal as of December 31, 2023, was RMB 509.4 million, with RMB 102.5 million of bank financing remaining unused[135]. - The company reported a decrease in cash and cash equivalents at the end of the year to RMB 676.8 million, up from RMB 350.7 million at the beginning of the year[159]. - The company has no significant foreign exchange risk as most transactions are settled in RMB and USD, and it holds no financial instruments for hedging purposes[139]. Research and Development - Research and development expenses decreased by 29.6% from RMB 79.0 million for the year ended December 31, 2022, to RMB 55.6 million for the same period in 2023[121]. - The group is eligible to apply for a tax deduction of 175% on R&D expenses, as per the regulations effective since 2018[194]. Corporate Governance and Compliance - The company plans to maintain high levels of corporate governance to protect shareholder interests and enhance corporate value[170]. - The company emphasized its commitment to internal controls and risk management during discussions with the audit committee[197]. - The company's audit committee reviewed the annual performance for the year ending December 31, 2023, ensuring compliance with relevant accounting standards and regulations[197]. - The group’s financial statements were prepared in accordance with relevant accounting principles and regulations, ensuring transparency and accuracy[197].
东软熙康(09686) - 2023 - 年度业绩