Tag: Genertec Universal Medical Group Company Limited

• Healthcare Business Surges 88% in Profit Attributable to Owners of the Parent

Genertec Universal Medical Group Company Limited (the Universal Medical or Company; HKG: 2666) is pleased to announce the interim results for the six months ended 30 June 2023.

Since 2023, the company served the “Healthy China” strategy and continued to expand its footprint in the healthcare sector, dedicated to promoting high-quality development for improving quality and expanding quantity with expected stability and energetic growth, and continued to realize the vision of “To Be the Most Trusted Global Leader in Medical & Healthcare Services”. In the first half of 2023, the company recorded a revenue of RMB6,634.4 million in total, up by 16.1% as compared to the corresponding period of the previous year. In particular, the healthcare business recorded a revenue of RMB3,646.1 million, up by 33.8% as compared to the corresponding period of the previous year, with its proportion to the total revenue increased to 55.0%; the company recorded a profit for the period of RMB1,193.6million, up by 1.5% as compared to the corresponding period of the previous year, of which, the healthcare business contributed RMB231.6 million, up by 61.1% as compared to the corresponding period of the previous year; the company recorded a profit attributable to owners of the parent of RMB1,093.2 million, up by 0.3% as compared to the corresponding period of the previous year, of which, the healthcare business contributed RMB174.0 million, up by 88.0% as compared to the corresponding period of the previous year; and the company recorded a return on total assets (ROA) of 2.96% and a return on equity attributable to ordinary shareholders (ROE) of 15.25%. The indicators of income and the assets conditions maintained a steady and excellent performance.

Integrated Healthcare Service Steady Development: the Net Profit Margin of the Medical Institutions Increased to 5.28%
The medical institutions are not only the company’s core resources to build a healthcare conglomerate, but also the R&D and training center of the Group’s discipline operation, training center of the Group’s discipline operation, as well as the project cultivation and commercialization pool and the sharing center for basic resources and practice of the industrial units. With respect to the integrated healthcare service segment, focusing on the development of the hospital group’s core capacity, the company continuously build up the competition advantages of central state-owned enterprises in running medical care,so as to facilitate positive and continuous development of Hospital of SOEs and constantly improve operation efficiency and effectiveness. As at 30 June 2023, the number of consolidated medical institutions increased to 55 (including four Grade III Class A hospitals and 26 Grade II hospitals), with a capacity of 13,893 beds in total. In the first half of the year, the consolidated Hospitals of SOEs contributed to the company a revenue of RMB3,528.0 million, up by 33.4% as compared to the corresponding period of the previous year; recorded a profit for the period of RMB186.4 million in total, up by 62.0% as compared to the corresponding period of the previous year; and the net profit margin was 5.28%, up by 0.93 percentage point from the same period of the previous year.

Specialties and Healthcare Industry Accelerating Growth: Continuous Enhancement of Competitiveness via Internal & External Strategies
With the business foundation and professional core talent team of its own hospital group, the company strived to build replicable capabilities of specialties and industry operation while serving internal quality and efficiency enhancement, so as to create new profit growth drivers for the listed company. The performance contribution of this business segment mainly comes from providing hospital clients with life cycle management of medical equipment, medical devises sales and internet-based healthcare services.

In the field of nephrology, the company will focus on enhancing the core capabilities for nephropathy diagnosis and treatment of primary level hospitals, the establishment of nephropathy diagnosis and treatment flagship centers and municipal and provincial key specialties and the construction of high-quality blood purification centers. The company continuously deepened the industry layout of nephrology specialties through the scientific research results supported by digitalization. Up to the current moment, the company opened 21 new specialties departments in its member hospitals, continued to build a rapidly replicable operating system, and gradually leading to cooperation with external hospitals. In the first half of 2023, the company founded the nephropathy industry research institute, and have completed the acquisition of Beth Hesda Nephrology Hospital and Haiyang Senzhikang Hospital Co., Ltd.

In the field of oncology, the company continues to push forward the construction, operation and standardization of tumor precision diagnosis and treatment centers, pool internal and external resources to build the flagship tumor specialty diagnosis and treatment benchmark inside and outside the hospital group, develop tumor radiotherapy business product solutions, expand the chain business scale through investment/construction, and promote the standardized, collaborative and efficient development of oncology specialties.The tumor precision diagnosis and treatment center of Ma’anshan MCC17 Hospital operated by the company was opened in March 2023. In June 2023, the company concluded a cooperative arrangement with Mevion Medical Group, under which both parties will jointly establish a tumor precision medical service company as the sole platform to provide oncology radiotherapy services by both parties in the PRC, with an aim to accelerate the establishment of leading oncology diagnosis and treatment business system and intelligent oncology diagnosis and treatment platform in the PRC, continuing to empower the development of the external and internal hospitals of the company.

From the perspective of the life circle management of equipment, the company relies on its own hospital group as a team capability training and business practice base to provide hospital customers with life cycle management services for medical equipment from procurement planning, repair and maintenance to refined operation management. Based on its equipment management and operation capabilities and financial strength accumulated over the years, the company believe that it can achieve rapid improvement of the business scale and core capabilities of the equipment life cycle management through endogenous development and extensional mergers and acquisitions. So far, the company was entrusted the operation of 14 hospitals with the assets under management with a value over RMB3 billion. The value of contracts entered into in the first half of 2023 amounted to over RMB90 million. In August 2023, the company acquired 85% equity interests of Casstar Medical Technology Wuxi Co., Ltd. (“Casstar”) at the consideration of RMB467.5 million. Casstar is recognized as a high-tech enterprise, a provincial specialized and sophisticated small and medium-sized enterprise, and a provincial gazelle enterprise, and has been committed to providing maintenance services for various type of medical imaging equipment since its establishment, with maintenance capacity covering mainstream medical imaging equipment, as well as life emergency, respiratory anaesthesia, hemodialysis and ultrasound equipment. It served a total of over 1,500 hospitals and maintained long-term cooperation relationship with more than 500 hospitals with asset under management of over RMB10 billion, providing nationwide service capacity. It also has a number of intellectual right patents, enjoys core strength in the Internet of Things, digital development and other fields, and is a leading enterprise with great influence in the industry. This acquisition will provide strong support for the company to improve its core competitiveness in the life cycle management equipment, and will accelerate the implementation of the company’s industry consolidation strategy, so as to facilitate rapid development of its business.

Financial Business Resilience: Solid Profitability and Asset Quality, Continuous Financing Structure Optimization.
In 2023, faced with the impact of various factors such as increasing financing costs in the overseas markets, intensified market competition at home, tightening financial regulation and shortage in quality assets, the company always took risk control as a top priority, and were committed to ensuring quality project development for our customers. By keeping abreast of the market development, the company strived to arrange financing structure properly, so as to ensure liquidity sufficiency and security while minimising the pressure of rising costs as a result of US Dollar interest rate hikes on the offshore markets. In the first half of 2023, the company recorded income of finance business of RMB2,988.2 million in total, remaining stable as compared with the corresponding period of the previous year. As at 30 June 2023, its net interest-earning assets reached RMB71,764.5 million, representing an increase of 10.0% as compared to that at the beginning of the year; the non-performing asset ratio was 0.98%; the overdue ratio (30 days) was 0.88%, and the provision coverage ratio was 255.06%.

Given that the current domestic and international economy and financial markets continue to be confronted with many risks, challenges and uncertainties, Universal Medical will continue to promote the steady and safe development of its finance business, and give full play to the finance business to empower the development of the medical care industry, so as to build a solid moat for the high-quality development of a central state-owned and listed enterprise.

It is worth mentioning that in terms of high-quality development of listed companies, Universal Medical has been continuously enhancing its ESG construction and fulfilling its social responsibilities as a central state-owned enterprise. The company has been actively engaged in medical assistance in Xinjiang, Tibet, and overseas, and the “XinYan Public Welfare Fund” has provided assistance to over 500 patients, effectively meeting the clinical treatment needs of critically ill patients in economically disadvantaged areas. In April, the company successfully launched the first “Rural Revitalization” labeled medium-term notes, and in July, it successfully secured the first domestic syndicated loan in line with green loan principles. The company has also been selected as one of the “China ESG Top 100 Listed Companies” released by the China Central Television, ranking 62nd. In the future, the company will continue to adhere to the principle of seeking progress while maintaining stability, promote high-quality development, and strive for new breakthroughs, creating greater value returns for all shareholders.

For further information, please contact:
PEANUT MEDIA LIMITED
Direct Line: +86-755-61619798 x8210
Email: hswh.project@czgmcn.com

• Revenues increase by 20.2%, Net Profit jumps 48% YoY

Genertec Universal Medical Group Company Limited (Universal Medical or Company; HKG: 2666) is pleased to announce annual results for the year ended 31 December 2022.

In 2022, Universal Medical adhered to the “Healthy China” strategy and continued to expand its footprint in the healthcare sector. The continuous improvement in the core capacity of the hospital group, the gradual perfection of and breakthroughs in the footprint expansion of the specialty business and the health conglomerate’s units, and the smooth and stable development of the finance business all contributed to the realization of the vision “To Be the Most Trusted Global Leader in Medical & Healthcare Services”.

In 2022, the Company recorded a revenue of RMB11,912.1 million in total, up by 20.2% as compared to the previous year. In particular, the hospital group business recorded a revenue of RMB6,211.2 million, up by 34.8% as compared to the previous year, with its proportion to the total revenue increased to 52.1%; the Company recorded a profit for the year of RMB2,087.5 million, up by 2.8% as compared to the previous year, of which, the hospital group business contributed RMB378.3 million, up by 48.0% as compared to the previous year; the Company recorded a profit attributable to owners of the parent of RMB1,890.0 million, up by 3.0% as compared to the previous year; and the Company recorded a return on total assets (ROA) of 2.84% and a return on equity attributable to ordinary shareholders (ROE) of 13.96%. The indicators of income and the assets conditions maintained a steady and excellent performance.

• Central State-Owned Enterprises Improved Core Competitiveness, and the Net Profit Margin of The Medical Institutions Increased by 0.42 Percent

The medical institutions are not only the Company’s core resources to build a healthcare conglomerate, but also the R&D and training center of its specialized medical business, as well as the project cultivation and commercialization pool and the sharing center for basic resources and practice of the industrial units. With respect to the integrated healthcare service segment, focusing on the development of the hospital group’s core capacity, the Company continuously build up the competition advantages of central state-owned enterprises in running medical care by reinforcing group management and control and upgrading professional operation, so as to facilitate positive and continuous development of the state-owned hospitals and constantly improve operation efficiency and effectiveness.

In 2022, the consolidated Hospitals of SOEs contributed to the Company a revenue of RMB6,022.9 million, up by 37.2% as compared to the previous year; they recorded a profit for the year of RMB290.3 million in total, up by 50.2% as compared to the previous year; and the net profit margin was 4.82%, up by 0.42 percentage point from 4.40% of the previous year.

In 2022, the Company consolidated the accounts of seven additional medical institutions with a capacity of 3,357 beds in total; and the number of consolidated medical institutions as at 31 December 2022 increased to 55 (including 4 Grade III Class A hospitals and 26 Grade II hospitals), with a capacity of 13,615 beds in total. The number of beds of medical institutions that were included within the management system but not yet consolidated was over 2,000. The currently planned number of internally built beds exceeded 4,000 in total. In the future, based on the existing operation scale, the Company will continue to expand the scale of the hospital group through internal construction and mergers and acquisitions of/cooperation with external hospitals.

• Specialties and Healthcare Industry Created New Growth Drivers for the Listed Company with Solid Steps

With the business foundation and professional core talent team of its own hospital group, the Company strived to build replicable capabilities of specialties and industry operation while serving internal quality and efficiency enhancement, so as to create new growth drivers for the listed company. The financial contribution of this new business segment mainly comes from providing hospital clients with life cycle management of medical equipment and medical devises sales, which recorded a total revenue of RMB83.8 million in 2022 and a total profit of RMB8.6 million for the year.

Over the past year, the Company took solid steps in constructions of featured specialties such as nephrology and oncology as well as building core capabilities of the life cycle management of equipment. In addition, the Company has made various progress in the business layout of disciplines such as TCM, ophthalmology, stomatology as well as healthcare industry including Internet-based healthcare and health insurance.

As a listed company in the field of medical and healthcare, the Company strives to develop into a medical and healthcare conglomerate with financial service capabilities, featured specialty services and differentiated industrial business advantages, and gradually unleashes the value of its various business segments and assets. Looking forward, the Company will rely on the development foundation of the hospital group, and continue to build the industrial development foundation and team capabilities, with an aim to create more high-value profitable segments for the listed company while serving its member hospitals to reduce costs and increase efficiency.

• Finance Business Expanded Steadily and Earnings and Asset Quality Indicators Remained Excellent

As the continuous profit contributor of the Company, the finance business will always strive to maintain healthy and steady development while ensuring asset security, laying a solid foundation and cash cow for the sustainable development of the Company.

In 2022, faced with the complex economic situation, the Company always took risk control as a top priority, and were committed to ensuring quality project development for its customers. By keeping abreast of the market changes, the Company strived to arrange financing structure properly, so as to ensure liquidity security and reasonable financing cost control. The Company continued to optimise the dynamic management of pre-rental, rental, and post-rental process, and enhanced accountability to ensure its asset quality remaining at an industry-leading level while maintaining continuous and steady business expansion.

In 2022, the Company recorded income of finance business of RMB5,721.2 million in total, representing a year-on-year increase of 7.8%. The average yield of interest-earning assets was 7.22%, and the average cost rate of interest-bearing liabilities was 3.98%. The net interest spread was 3.24%, and the net interest margin was 3.67%. Its asset quality continued to remain excellent. As at 31 December 2022, the Company’s net interest-earning assets reached RMB65,233.8 million, representing an increase of 6.7% as compared to that at the beginning of the year; the non-performing asset ratio was 0.99%; the overdue ratio (30 days) was 0.86%, and the provision coverage ratio was 263.11%.

Given that the domestic and international economy and financial markets continue to be confronted with many risks, challenges and uncertainties, Universal Medical will continue to promote the steady and safe development of its finance business, and give full play to the finance business to empower the development of the medical care industry, so as to lay a solid foundation for the high-quality development of a central state-owned and listed enterprise.

2023 marks a critical year for China market in its transition to the “post-pandemic” era, which also represents an important window period for the implementation of strategic initiatives of the Company. As a central state-owned and listed enterprise, the Company will continue to follow the overall deployment of the 14th Five-Year Plan and keep abreast of the latest development and requirements to promote steady development of the finance business, make strenuous efforts to improve the core capability and operating efficiency of the hospital group, accelerate the deployment of specialized disciplines and industry layout, and facilitate new breakthroughs in the high-quality development of the entire group, laying a solid foundation for the achievement of creating a more valuable listed company.

For further information, please contact:
PEANUT MEDIA LIMITED
Direct Line: +86-755-61619798 x8210
Email: hswh.project@czgmcn.com

• Pursuing Progress in Revenue, Increased by 14.1%
• Ensuring Stability and Accommodating the Needs for Pandemic Control

The board of directors of Genertec Universal Medical Group Co Ltd (the Company or Universal Medical; HKG: 2666) is pleased to announce the interim results of the Company and its subsidiaries (together, the “Group”) for the six months ended 30 June 2022.

Facing with various unexpected factors emerged during the first half of 2022, while making unwavering efforts to lead the subordinate medical institutions in its proactive commitment to fighting against the pandemic, the Group adhered to its established business strategies by continuing to move forward in the field of medical and healthcare, and steadily promoted its business and improved its overall operating performance.

In the first half of 2022, the Group recorded a revenue of RMB5,712.3 million, representing an increase of 14.1% as compared to the corresponding period of the previous year; recorded a net profit of RMB1,176.4 million, representing an increase of 4.5% as compared to the corresponding period of the previous year; recorded a net profit attributable to owners of the parent of RMB1,089.4 million, representing an increase of 3.8% as compared to the corresponding period of the previous year; recorded return on total assets (ROA) of 3.20%, and return on equity (ROE) attributable to owners of the parent of 16.51%. The indicators of income maintained a steady performance and the asset quality was generally safe and controllable.

The Profit of Hospital Group Increased by 13.7% While Accommodating the Needs for Pandemic Control
Hospital group is the essential resources of building a healthcare conglomerate. Having been actively participating in integration and takeover of medical institutions of SOEs since 2017, the Group continued to expand its hospital group business, and orderly advanced its post-investment management to better accommodate the needs for pandemic control of SOE-owned hospitals. The Group also continuously enhanced the three core capabilities of “discipline”, “operation” and “service”, with an aim to build overall advantages of the hospital group in terms of safety, effectiveness, accessibility, and humanities as a way to promote high-quality development of hospitals of SOEs. Moreover, relying on the development foundation of the hospital group, the Group expanded business layout in various fields including medical service, life cycle management of medical equipment, medical testing, internet-based healthcare services, health and wellness and insurance, and actively expanded external customers while efficiently serving the Group’s member hospitals to gradually lay a foundation for development in scale.

With the implementation of group management and control of hospitals, the core capabilities of disciplines, operations and services have been gradually improved to lay the groundwork for sustainable growth trends in the medical business. In the first half of 2022, facing with the frequent outbreaks and pandemic rebound in certain cities, its medical institutions made proactive response to the relevant requirements of the government regarding pandemic prevention and control by undertaking a great number of nucleic acid testing and vaccination tasks. Under the temporary operation pressure of staff shortage and increasing costs for pandemic prevention and control, the Group maintained overall stable profitability in the first half of 2022 through measures such as increasing volunteer medical consultation and featured services to boost business volume and reinforce refined operation.

In terms of consolidated revenue, in the first half of 2022, the hospital group business (excluding hospital investment platforms) recorded revenue of RMB2,721.1 million during the consolidation period, representing an increase of 28.4% as compared to the corresponding period of the previous year, mainly due to the consolidation of additional medical institutions during the period, and recorded profit for the period of RMB112.6 million, representing an increase of 13.7% as compared to the corresponding period of the previous year. The gross profit margin from operations was 12.1%, and net profit margin was 4.1%.

In terms of operations, in the first half of 2022, the Group consolidated the accounts of six additional medical institutions with a capacity of 2,507 beds in total; the total number of medical treatments in the 51 consolidated medical institutions of the Group was approximately 5,446,000, representing an increase of approximately 52.2% as compared to the corresponding period of the previous year. The number of outpatient and emergency visits amounted to approximately 4,951,000, representing an increase of approximately 57.1% as compared to the corresponding period of 2021, which was mainly attributable to the significant increase in the outpatient visits for nucleic acid test during the first half of 2022. Without taking into account of the impact of nucleic acid visits, the number of outpatient and emergency visits still outperformed that of the corresponding period of the previous year by approximately 6%. The number of inpatient visits based on discharges amounted to approximately 160,000, remaining basically in line with that of the corresponding period of 2021, which was mainly due to the frequent outbreaks of covid-19 pandemic across the country during the first half of 2022. Meanwhile, with the continuous expansion of the medical examination business operated by its medical institutions, the number of visits for medical examination reached approximately 495,000 in the first half of 2022, representing an increase of approximately 15.9% as compared to the corresponding period of 2021. The revenue of hospital operation of the 51 consolidated medical institutions for the first half of 2022 reached RMB2,694.9 million in total, representing an increase of approximately 8.8% as compared to the corresponding period of the previous year, and the overall income per bed of the consolidated medical institutions was approximately RMB420,000 on an annualised basis.

Following the integration and takeover of medical institutions of SOEs since 2017, the Group continued to empower the development of the hospitals and took active and effective measures in response to external factors such as the pandemic and reforms. In the future, in order to serve the national healthcare initiative and in the trend of high-quality development of the medical industry, the Group will give full play to the competition advantages of central state-owned enterprises in running medical care by reinforcing group management and control and upgrading professional operation, further improving the operating efficiency of medical institutions.

Meanwhile, by fostering hospital group, the Group will also further build replicable advantages in terms of hospital operation management, life cycle management of medical equipment, supply chain management, infrastructure management and digital services, expand the market presence in addition to the health conglomerate and cultivate the new service mode featured with the integration of industry and finance, so as to promote quality and efficiency enhancement for external hospital customers and create new growth drivers for the Company.

The Interest Income of Financial Business Increased by 5.7% under the Efforts to Overcome the Impact of Ongoing Pandemic
In the first half of 2022, the Group strived to overcome the impact of ongoing pandemic. With risk control as a top priority, the Group were committed to ensuring quality project development for its customers, with an aim to ensure safe and healthy development of the finance business. By keeping abreast of the market changes, the Group strived to control financing costs with a flexible approach to meet investment capital requirements. In the first half of 2022, the finance and advisory business of the Group recorded a revenue of RMB2,987.8 million in total, representing an increase of 3.4% as compared to the corresponding period of the previous year, of which the interest income amounted to RMB2,391.1 million, representing an increase of 5.7% as compared to the corresponding period of the previous year. All business indicators continued to maintain a good level. The average yield of interest-earning assets was 7.46% and the average cost rate of interest-bearing liabilities was 3.71%, while the net interest margin was 3.75% and the net interest spread was 4.16%.

While its finance business continued to expand steadily, the Group continued to optimize the dynamic management of pre-rental, rental, and post-rental process, and enhanced accountability to ensure its asset quality remaining at an industry-leading level. As of 30 June 2022, its net interest-earning assets reached RMB65,804.8 million, representing an increase of 7.7% as compared to the end of 2021; the non-performing asset ratio was 0.98%; the overdue ratio (30 days) was 0.82%, and the provision coverage ratio was 242.96%.

While keeping a controllable risk profile, the Group will continue to facilitate steady development of the finance leasing business in the fields of public hospitals and urban public utility. Leveraging on the core businesses of the central state-owned group and in an active response to the national policies, the Group will continue to foster and expand innovative businesses. The Group will explore a development model featured with the integration of finance business and medical care industry so as to lay a solid foundation for the high-quality development of a central state-owned and listed enterprise and achieve a leapfrog growth in the operating results.

About Genertec Universal Medical Group Co Ltd
Genertec Universal Medical Group Co., Ltd. (Universal Medical; HKG: 2666) is a publicly listed state-owned enterprise committed to China’s healthcare industry. China General Technology (Group) Holding Co Ltd., one of the backbone SOEs directly supervised by the central government is the controlling shareholder of the Company. Universal Medical focuses on the fast-developing healthcare industry in China, with medical services as the core and financial business as the foundation. The Company harvests modern management concepts, professionals, quality medical resources with solid financial strength, and an inclusive corporate culture. Altogether it strives to build a reliable healthcare conglomerate and develop a healthcare ecosystem that all can mutually share and benefit. The Company owns 63 medical institutions, distributed in 14 provinces and municipalities such as Shaanxi, Shanxi, Sichuan, Liaoning, Anhui, Hebei, Beijing, and Shanghai, including 5 Grade III Class A hospitals and 29 Grade II hospitals, with a total of more than 16,000 beds. In the future, Universal Medical will continue to grasp opportunities posed by China’s healthcare sector, actively respond to the “Health China” program and make contributions to China’s public health industry. Please visit https://en.umcare.cn/.

This press release is released by PEANUT MEDIA LIMITED on behalf of Genertec Universal Medical Group Company Limited.

For further information, please contact:
PEANUT MEDIA LIMITED
Lu Jing / Jing Gao
Direct Line: +86-755-61619798 +8210
Email: hswh@czgmcn.com

Genertec Universal Medical Group Company Limited (the Company or Universal Medical, and together with its subsidiaries, the Group; HKG: 2666) is pleased to announce annual results for the year ended 31 December 2021.

FINANCIAL HIGHLIGHTS

• For the year ended 31 December 2021, the revenue amounted to approximately RMB9,914.3 million, representing an increase of 16.3% as compared with that of approximately RMB8,521.2 million for 2020.
• For the year ended 31 December 2021, the profit before tax amounted to approximately RMB2,691.8 million, representing an increase of 13.8% as compared with that of approximately RMB2,365.0 million for 2020.
• For the year ended 31 December 2021, the profit for the year attributable to owners of the parent amounted to approximately RMB1,835.2 million, representing an increase of 11.4% as compared with that of approximately RMB1,647.5 million for 2020.
• As at 31 December 2021, the total assets amounted to approximately RMB69,899.8 million, representing an increase of 13.6% as compared with that of approximately RMB61,511.0 million as at 31 December 2020.
• As at 31 December 2021, the equity attributable to owners of the parent amounted to approximately RMB13,104.0 million, representing an increase of 21.7% as compared with that of approximately RMB10,770.5 million as at 31 December 2020.
• For the year ended 31 December 2021, the return on equity was 15.37%, and the return on total assets was 3.09%.

2021 was the opening year of the “14th Five-Year Plan”. The Group fulfilled the responsibilities as a central enterprise, adhered to serving the “Healthy China” strategy, and firmly moved forward in the field of medical and healthcare. In 2021, the Group steadily promoted business and improved overall operating performance with a revenue of RMB9,914.3 million, representing an increase of 16.3% as compared to the previous year; net profit of RMB2,030.5 million, representing an increase of 11.9% as compared to the previous year; net profit attributable to owners of the parent of RMB1,835.2 million, representing an increase of 11.4% as compared to the previous year; return on total assets (ROA) of 3.09%, and return on equity attributable to ordinary shareholders (ROE) of 15.37%.

Hospital Group Improved Quality and Efficiency, with Net Profit Increasing by 39.5%.
In 2021, the Group continued to consolidate the accounts of medical institutions into its own hospital group, and in the context of normalized pandemic prevention and control, the Group orderly advanced the post-investment management of medical institutions, and continuously enhanced the three core capabilities of “discipline”, “operation” and “service”, to build the overall advantages of the hospital group in terms of safety, effectiveness, accessibility, and humanities as a way to achieve steady progress in operating efficiency. As of 31 December 2021, the number of consolidated medical institutions increased to 45 (including 3 Grade III Class A hospitals and 20 Grade II hospitals), with a total of 10,376 beds. The hospital group launched a total of 372 construction projects, including 10 new outpatient and inpatient multifunction building projects, with a planned number of new beds exceeding 4,000 in total. In 2021, the hospital group contributed a revenue of RMB4,608.4 million to the Company, representing an increase of 27.2% as compared to the previous year, and its proportion in the total revenue from the business of the Group increased from 42.5% in 2020 to 46.5%. Without taking into account the hospital investment platform, the hospital group achieved a total gross profit of RMB585.0 million, representing an increase of 53.9% as compared to the previous year, a total net profit of RMB214.3 million, representing an increase of 39.5% as compared to the previous year, a gross profit margin from operations of 12.7% and a net profit margin of 4.65%.

From the perspective of operation, in the post-pandemic era, the number of beds and the overall operation of its medical institutions have shown a recovery growth. Meanwhile, with the implementation of group management and control of hospitals, the core capabilities of disciplines, operations and services have been gradually improved to lay the groundwork for sustainable growth trends in the healthcare business. Income per bed steadily increased from approximately RMB380,000 in 2019 to approximately RMB420,000 in 2021, and the efficiency of bed use was further improved; the volume of outpatient and emergency businesses increased significantly, overall outpatient and emergency visits in 2021 increased by 945,800 as compared to that of 2019, with a growth rate of 19.9%, which exceeded the market average rate; the structure of hospital expenses was optimized, and the average inpatient expenses of Grade II hospitals increased organically, with an increase of 10% as compared to that of 2019.

The Expansion of the Industrial Chain Achieved Initial Results, and the Advantages of Large-scale Development was Gradually Established
Focusing on the core resources of the hospital group, the Group consolidated the business foundation in various fields such as Internet-based healthcare, equipment maintenance, and medical testing over the past year. While efficiently serving the Group’s internal hospitals, the Group actively expanded external customers and gradually established advantages from scalable development. For instance, in terms of Internet-based healthcare, the Internet-based healthcare platform “Universal Healthcare” became a unified Internet portal for the healthcare group, the core carrier of the healthcare industry chain business, and provided support and assistance for the digital management of specialties. As of 31 December 2021, “Universal Healthcare” was officially launched for 34 internal and external medical institutions with more than 3,000 online doctors and 750,000 registered users, and served more than 2 million people. It has developed an online + offline service model, and realized a one-stop medical treatment for patients covering the whole process; in terms of equipment maintenance, the Group actively promoted an advanced business model of “managing medical equipment for a full life cycle” to provide hospitals with standardized maintenance service and comprehensive equipment operation and management services. As of 31 December 2021, the Group maintenance business recorded an annual revenue of RMB36.96 million, representing an increase of 194.8% as compared to 2020; in terms of medical testing, relying on clinicians and medical teams from subordinate medical institutions, the Group has carried out medical testing business to provide more accurate and professional testing services to local medical institutions nearby. Among them, the testing center of Xi’an XD Group Hospital recorded an annual revenue of RMB89.96 million, representing an increase of 48.3% as compared to 2020.

Financial Business Developed Steadily, with an Increase of 15.6% in Gross Profit of Interest Margin
With years of experience in the industry, the Group has built efficient market capabilities, flexible financing capabilities, and professional risk control capabilities to provide customers in public hospitals, public utilities and other fields with comprehensive financial solutions centered on financial leasing, as well as industry, equipment and financing consulting, department upgrade and other services, which has fully guaranteed the continuous profitability of the Group as the hospital group grows. In 2021, as the regulatory system for the financial business of central enterprises was further improved, we further enhanced operation and management capabilities on the basis of sound risk prevention and mitigation to steadily advance financial business. The Group recorded interest income of finance services of RMB4,469.0 million, representing a year-on-year increase of 8.3%, and the gross profit of interest margin of RMB2,640.6 million, representing a year-on-year increase of 15.6%. The net interest spread was 3.56%, and the net interest margin was 4.05%. All of the aforesaid business indicators remained at a leading position in the industry.

While its financial business continues to expand steadily, the asset quality remains at an industry-leading level. As of 31 December 2021, its net interest-earning assets reached RMB61,127.6 million, representing an increase of 11.9% from the beginning of the year; the non-performing asset ratio was 0.98%, representing a decrease of 0.02 percentage point from the end of 2020; the overdue ratio (30 days) was 0.76%, representing a decrease of 0.18 percentage point from the end of 2020; and the provision coverage ratio was 238.29%, representing an increase of 32.77 percentage points from the end of 2020.

Prospect for the Future
In next year, following the overall deployment of the “14th Five-Year Plan”, the Group will continue to actively carry out the mission of safeguarding life and health with quality medical care, give full play to the advantages of group-based management and control to comprehensively improve the lean management, and build a digital hospital management group. The Group will build core capabilities in pursuing integrated development of featured specialties such as oncology and nephrology, and extend industrial chain services around the core resources of the hospital group to make breakthroughs in the high-quality development of the entire group, and create greater returns for all Shareholders!

About Genertec Universal Medical Group Company Limited (2666.HK)
Genertec Universal Medical Group Co., Ltd (Universal Medical) is a publicly listed state-owned enterprise committed to China’s healthcare industry. China General Technology (Group) Holding Co Ltd., one of the backbone SOEs directly supervised by the central government is the controlling shareholder of the Company. Universal Medical focuses on the fast-developing healthcare industry in China, with medical services as the core and financial business as the foundation. The Company harvests modern management concepts, professionals, quality medical resources with solid financial strength, and an inclusive corporate culture. Altogether strives to build a reliable healthcare conglomerate and develop a healthcare ecosystem that all can mutually share and benefit. The Company owns 62 medical institutions, distributed in 14 provinces and municipalities such as Shaanxi, Shanxi, Sichuan, Liaoning, Anhui, Hebei, Beijing, and Shanghai, including 5 Grade III Class A hospitals and 30 Grade II hospitals, with a total of more than 16,000 beds. In the future, Universal Medical will continue to grasp opportunities posed by China’s healthcare sector, actively respond to the “Health China” program and make contributions to China’s public health industry. www.universalmsm.com.

This press release is released by PEANUT MEDIA LIMITED on behalf of Genertec Universal Medical Group Company Limited.

For further information, please contact:
PEANUT MEDIA LIMITED
Lu Jing / Jing Gao
Direct Line: +0755-61619798+8210
Email: hswh@czgmcn.com