Financial Performance - The group's revenue increased by 30.0% from RMB 532.7 million in the same period of 2022 to RMB 692.7 million for the six months ended June 30, 2023[2]. - Gross profit rose by 32.2% from RMB 244.3 million in 2022 to RMB 322.9 million, with a gross margin improvement from 45.9% to 46.6%[2]. - Profit before tax increased by 40.7% from RMB 131.2 million to RMB 184.6 million, with a profit before tax margin rising from 24.6% to 26.6%[2]. - Net profit grew by 44.3% from RMB 101.8 million to RMB 146.9 million, with a net profit margin increasing from 19.1% to 21.2%[2]. - Adjusted net profit under non-IFRS increased by 32.1% from RMB 103.25 million to RMB 136.5 million, with an adjusted net profit margin rising from 19.4% to 19.7%[2]. - Basic earnings per share increased by 40.0% from RMB 0.15 to RMB 0.21[2]. Operational Growth - The number of ophthalmology hospitals operated by the group increased from 18 to 26, and optical centers increased from 25 to 27[2]. - Outpatient visits rose to 531,714 in the first half of 2023, compared to 439,780 in the same period of 2022, representing a growth of approximately 20.9%[7]. - Inpatient visits increased significantly from 22,510 to 32,922, marking a growth of approximately 46.2%[7]. - The optical center customer visits increased to 58,317, up from 55,339, indicating a growth of approximately 5.6%[7]. - The group expanded its network to 26 hospitals and 27 optical centers across six provinces or autonomous regions in China as of June 30, 2023[6]. Revenue Breakdown - The consumption ophthalmology services accounted for 52.1% of total revenue, amounting to RMB 361.1 million, while basic ophthalmology services contributed 47.9% with RMB 331.6 million[9]. - Revenue from consumer ophthalmology services rose by 24.1% from RMB 291.1 million to RMB 361.1 million, driven by increased marketing efforts and improved customer management[22]. - Revenue from basic ophthalmology services surged by 37.2% from RMB 241.7 million to RMB 331.6 million, attributed to enhanced marketing activities and improved patient service processes[23]. Cost and Expenses - The group's sales cost increased by 28.2% from RMB 288.4 million for the six months ended June 30, 2022, to RMB 369.8 million for the same period in 2023, primarily due to business expansion and additional costs related to newly built and acquired hospitals and optical centers[24]. - Sales and distribution expenses increased by 95.1% from RMB 26.3 million to RMB 51.3 million, primarily due to increased marketing expenses for newly built and acquired hospitals[27]. - Administrative expenses rose by 19.3% from RMB 92.7 million to RMB 110.6 million, mainly due to increased employee salaries and travel expenses following the easing of pandemic restrictions[28]. Investment and Financing - The group has a total of 1,316 full-time medical professionals, including 262 doctors, 598 nurses, and 456 other professionals as of June 30, 2023[15]. - The company issued 137,500,000 shares at HKD 10.60 per share, raising a net amount of approximately HKD 1.599 billion from the global offering[56]. - 35.8% of the net proceeds (HKD 572.4 million) will be used for establishing new hospitals and upgrading existing ones, expected to be utilized by June 2024[57]. - 44.8% of the net proceeds (HKD 716.4 million) is allocated for acquiring hospitals in new markets with high demand for ophthalmic services, also expected to be used by June 2024[57]. Market Outlook - The Chinese ophthalmic medical service market is expected to grow from RMB 730 billion in 2015 to RMB 2,231 billion by 2024, with a compound annual growth rate of 15.0%[17]. - The North China ophthalmic medical service market is projected to increase from RMB 132 billion in 2015 to RMB 337 billion by 2024, with a compound annual growth rate of 12.5%[17]. - The group plans to enhance marketing efforts and optimize customer management to increase market share and customer loyalty[11]. - The group aims to strengthen its market position in key areas such as Zhejiang Province and develop specialized ophthalmology hospitals[19]. Corporate Governance and Compliance - The company has adopted the standard code of conduct for securities trading by directors and confirmed compliance since January 1, 2023[54]. - The group has established credit policies to monitor and manage credit risks effectively[51]. - The group is focused on establishing a robust ESG framework to contribute positively to society[20]. Cash Flow and Liquidity - Cash and cash equivalents decreased by RMB 530.8 million, with net cash inflow from operating activities at RMB 194.8 million and net cash outflow from investing activities at RMB 589.4 million[38]. - The net cash flow from investing activities was negative RMB 589.4 million, mainly due to the purchase of financial assets and fixed deposits[38]. - The group has maintained a sufficient level of cash and cash equivalents to meet its debt obligations and future capital expenditures[52].
朝聚眼科(02219) - 2023 - 中期业绩