Revenue Grew by 52.5%; Forging a leading medical and health conglomerate
HONG KONG, Aug 27, 2019 - (ACN Newswire) - The board (the "Board") of directors (the "Directors") of Genertec Universal Medical Group Company Limited (the "Company" or "Universal Medical") is pleased to announce the unaudited condensed consolidated interim results of the Company and its subsidiaries for the six months ended 30 June 2019.
2019 INTERIM RESULTS HIGHLIGHTS
- Revenue amounted to approximately RMB3,195.4 million, representing an increase of 52.5% as compared with that of approximately RMB2,094.8 million for the corresponding period of 2018.
- Profit for the period amounted to approximately RMB872.5 million, representing an increase of 19.0% as compared with that of approximately RMB733.3 million for the corresponding period of 2018.
- Profit for the period attributable to ordinary shareholders of the parent amounted to approximately RMB812.0 million, representing an increase of 10.4% as compared with that of approximately RMB735.5 million for the corresponding period of 2018.
- Total assets amounted to approximately RMB57,577.8 million, representing an increase of 21.8% as compared with that of approximately RMB47,256.9 million as at 31 December 2018.
- Attributable to ordinary shareholders of the parent amounted to approximately RMB8,801.6 million, representing an increase of 4.8% as compared with that of approximately RMB8,395.6 million as at 31 December 2018.
- Return on equity was 18.89% and return on assets was 3.33%.
In the first half of 2019, the Group made remarkable progress in terms of depth and breadth in healthcare industry, steadily implemented its development strategy and further strengthened its business foundation. Focusing on its strategic development objective of building a leading medical and health conglomerate in China, the Company carried out the business layout for hospital group on all fronts and stably developed the medical finance business, along with further developing medical technology services and medical digitalization business. As a result, the Group's comprehensive strength continued to be reinforced and its operating results kept growing steadily. For the reporting period, the Group recorded revenue of RMB3,195.4 million, representing an increase of 52.5% as compared to the corresponding period of the previous year; recorded profit of RMB872.5 million, representing an increase of 19.0% as compared to the corresponding period of the previous year; recorded profit attributable to the ordinary shareholders of the Company of RMB812.0 million, representing an increase of 10.4% as compared to the corresponding period of the previous year; and it recorded total assets of RMB57,577.8 million on 30 June 2019, representing an increase of 21.8% as compared to the year end of 2018. The Company's assets recorded a sound growth, with leading asset quality in the industry.
Hospital Group Business
In the first half of 2019, fully leveraging its strengths in resources and proactively making the most of opportunities from the market and policies, the Group carried out its business layout for hospital group on all fronts. Firstly, the Group continuously pushed forward integration and takeover of medical institutions of SOEs, and has made great progress. Secondly, the Group steadily integrated the management of cooperating medical institutions to establish a conglomerate management system. Thirdly, the Group continued its hospital investment and construction and solid implementation of its operating projects. To date, the Group's nationwide medical services network has been gradually established, and an advanced modern hospital group has begun to take shape.
The Company has been building up a tightly-knit medical network surrounding key regions and cities across the country, and gradually establishing a number of regional medical centers in the country, laying a solid foundation for building a nationwide medical and health conglomerate with synergic advantages. As of 30 June 2019, the Group had acquired 16 medical institutions, of which, two are Grade III Class A hospitals and nine are Grade II hospitals, with operating capacity of 4,193 beds in total. The number of outpatient visits and inpatient visits amounted to 1.231 million and 67,000, respectively, and the hospital operation recorded revenue of RMB962.8 million in the first half of 2019. In the future, based on local epidemiology survey, the actual situation of each medical institution, and prediction of medical development trends, the Group will enhance the comprehensive strengths and brand awareness of these hospitals by mapping out discipline development, introducing quality medical resources and optimizing operation and management system.
Hospitals are the core resources to support development of medical and health industry. For medical institutions managed by the Group, the Group will comprehensively improve their medical technology, management efficiency and service capabilities by establishing a tightly-knit healthcare network, introducing modern hospital management mode, connecting with top medical resources at home and abroad and promoting development of related disciplines as a whole. The Company will focus on four core strategies of "differential positioning, regional focus, conglomerate management and scale-up development" to establish a medical service network with nationwide coverage and regional integration, and build up a modern hospital group with outstanding technology and efficient management.
The Group entered into cooperation agreements in relation to the investment, construction and operation of hospitals with the First Affiliated Hospital on 30 August 2016, and with the Health Commission of Handan and Handan First Hospital on 9 August 2018, respectively.
Finance and Advisory Business
In the first half of 2019, facing changing environments in domestic and international finance markets and even more fierce competition in finance lease market, the Group worked meticulously in niche market, continuing to improve the width and depth of market penetration, actively adjusting the Company's financing strategies to optimize debt structures, which contributed to steady increase in the Group's revenue from financing lease business and asset size. During the reporting period, the Group's revenue from finance and advisory business increased by 21.3% to RMB2,471.6 million as compared to the corresponding period of the previous year, and profit for the period attributable to ordinary shareholders of the parent for finance and advisory business increased by 7.7% to RMB800.3 million as compared to the corresponding period of the previous year. As always, the Group executed prudent risk control processes and strict asset management measures to ensure that the asset quality remains the leading position in the industry.
At the same time, the Company leveraged the rich medical resources to provide hospital clients with clinical department upgrade advisory services for the prevention, treatment and rehabilitation of CVA and other major diseases with high prevalence. Meanwhile, the Company kept an eye on the international medical development, introduced world-class advanced medical equipment to domestic hospitals, and made organic combination of the construction of hospital departments and overall development, to practically improve medical technology for hospital clients.
Also, leveraging its member hospitals, own technology team and independent research technologies, the Company introduced and brought in external technology team as well as related products and services guided by platform mindset. With three aspects at the core, namely Internet-based healthcare services, smart hospital solutions, and medical big data and artificial intelligence services, the Company persistently improved the construction of medical digitalization for member hospitals of the Group, thus realized the coordination of functions and resources sharing among hospitals within the Group, and improved the hospitals' operation efficiency and management level.
In the second half of 2019, the Group will continue to develop finance and advisory business on the one hand, to consolidate operating foundation; and on the other hand, will comprehensively promote the business layout of hospital group, accelerate the execution of cooperation projects, steadily implement the integration and management work of cooperating medical institutions and establish a management system for the hospital group, to build up a hospital group with excellent technology and efficient management.
In the future, the Group will continue to focus on the strategic development direction in medical and healthcare sector and seize policy and market opportunities. Starting from the concept of the whole life cycle and the whole industrial chain, with medical services as the core, the Group will simultaneously develop medical finance, medical technology service, medical digitalization, medical health insurance, and medical and elderly care business, to form a closed loop of medical and health service, covering the whole life cycle of patients, and strive to be a leading medical and health conglomerate in China, bringing vitality to the construction of "Healthy China".