Financial Performance - The group's revenue for the six months ended June 30, 2023, was approximately RMB 1,333.9 million, an increase of 17.2% compared to RMB 1,138.2 million for the same period in 2022[2]. - The group's net profit for the six months ended June 30, 2023, was approximately RMB 223.6 million, representing a 19.3% increase from RMB 190.1 million for the same period in 2022[2]. - The adjusted net profit under non-IFRS was approximately RMB 254.8 million for the six months ended June 30, 2023, a decrease of 2.3% compared to RMB 260.7 million for the same period in 2022[2]. - The group's EBITDA for the six months ended June 30, 2023, was approximately RMB 394.1 million, an increase of 16.3% from RMB 333.5 million for the same period in 2022[2]. - Basic earnings per share for the six months ended June 30, 2023, were RMB 0.08, while the adjusted basic earnings per share were RMB 0.10[3]. - Total comprehensive income for the period reached RMB 446,601,000, an increase from RMB 389,433,000 in the same period last year, representing a growth of approximately 14.7%[7]. - The profit from segments for the six months ended June 30, 2023, was RMB 337,842,000, compared to RMB 263,601,000 for the same period in 2022, indicating an increase of about 28.2%[17]. - The group reported a pre-tax profit of RMB 278.5 million for the six months ended June 30, 2023, compared to RMB 233.7 million for the same period in 2022[6]. Expenses and Costs - Research and development expenses for the six months ended June 30, 2023, were RMB 10.6 million, compared to RMB 4.7 million for the same period in 2022[6]. - Administrative expenses for the six months ended June 30, 2023, were RMB 188.1 million, slightly increasing from RMB 187.6 million for the same period in 2022[6]. - Total financial costs for the six months ended June 30, 2023, were RMB 42,650 thousand, up from RMB 32,994 thousand in the same period in 2022, representing an increase of approximately 29.2%[24]. - Sales and distribution expenses increased by 62.5% from approximately RMB 53.7 million to approximately RMB 87.2 million, largely due to the consolidation of the Kunming business[79]. - Financial costs increased by 29.3% from approximately RMB 33.0 million to approximately RMB 42.7 million, primarily due to interest from a syndicated loan of USD 300 million[81]. Assets and Liabilities - Non-current assets totaled RMB 13,687,634,000 as of June 30, 2023, up from RMB 13,328,163,000 at the end of 2022, reflecting an increase of about 2.7%[8]. - Current liabilities decreased to RMB 1,626,056,000 from RMB 2,763,971,000, showing a reduction of approximately 41.2%[9]. - The total liabilities decreased to RMB 3,417,229,000 from RMB 3,732,938,000, reflecting a decrease of about 8.4%[9]. - The company's cash and cash equivalents decreased to RMB 761,064,000 from RMB 1,316,549,000, a decline of approximately 42.2%[8]. - The company’s current liabilities for accounts payable and other payables totaled RMB 844,199,000, down from RMB 916,929,000 as of December 31, 2022, a decrease of 7.9%[36]. Revenue Sources - The group's revenue from external customers was RMB 1,333,906,000, an increase from RMB 1,138,228,000 for the same period in 2022, representing a growth of approximately 17.2%[16]. - Revenue from assisted reproductive services reached RMB 638,702 thousand, up from RMB 518,635 thousand, indicating a growth of about 23.1% year-over-year[21]. - Revenue from Chengdu operations decreased by 2.0% to approximately RMB 687.4 million, primarily due to a reduction in management service fees charged to the Jinjiang Reproductive Center[65]. - Revenue from Shenzhen operations increased by 13.8% to approximately RMB 188.4 million, driven by an increase in IVF treatment cycles post-pandemic[69]. - Revenue from Wuhan operations surged by 152.0% to approximately RMB 16.6 million, attributed to the resumption of ARS services[70]. Strategic Initiatives - The company has been focusing on enhancing its assisted reproductive services (ARS) to improve treatment success rates and patient experience, thereby strengthening its market position[41]. - The company aims to leverage its strengths in ARS to expand full-cycle fertility services, including pre-pregnancy, IVF, prenatal, delivery, and postnatal care[41]. - The company has made significant investments in R&D to improve clinical translation and enhance clinical standards in its services[41]. - The company is actively pursuing information-driven smart hospital construction to enhance patient convenience and operational management[41]. - The company has established partnerships with several renowned universities to enhance research and training in reproductive medicine[59]. Market Outlook - The company anticipates a recovery in business in 2023, driven by strong demand for assisted reproductive technology (ART) and services, particularly in the Chinese market where the penetration rate remains relatively low compared to approximately 30% in Europe and the U.S.[51]. - The Chinese government has implemented various policies to encourage childbirth, allowing couples to have up to three children, which is expected to significantly increase the penetration rate and market size for ART in China[52]. - HRC Medical has increased its ownership in Jiuzhou Hospital and Huanjia Hospital in Yunnan Province to approximately 96.50%, positioning these hospitals as the second largest in the province by market share and the largest among private hospitals[53]. Shareholder Information - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2023[3]. - The company has granted a total of 57,170,247 restricted shares under the 2022 Restricted Share Incentive Plan as of the announcement date[60]. - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[120]. - The audit and risk management committee has reviewed the company's accounting principles and internal controls, ensuring compliance with applicable laws and regulations[121].
锦欣生殖(01951) - 2023 - 中期业绩