2021 INTERIM RESULTS HIGHLIGHTS
-- For the six months ended 30 June 2021, the revenue amounted to approximately RMB5,007.5 million, representing an increase of 24.4% as compared with that of approximately RMB4,024.2 million for the corresponding period of 2020.
-- For the six months ended 30 June 2021, the profit for the period amounted to approximately RMB1,125.5 million, representing an increase of 30.7% as compared with that of approximately RMB861.0 million for the corresponding period of 2020.
-- For the six months ended 30 June 2021, the profit for the period attributable to owners of the parent amounted to approximately RMB1,050.0 million, representing an increase of 32.3% as compared with that of approximately RMB793.4 million for the corresponding period of 2020.
-- As at 30 June 2021, the total assets amounted to approximately RMB69,894.9 million, representing an increase of 13.6% as compared with that of approximately RMB61,511.0 million as at 31 December 2020.
-- As at 30 June 2021, the equity attributable to owners of the parent amounted to approximately RMB12,363.4 million, representing an increase of 14.8% as compared with that of approximately RMB10,770.5 million as at 31 December 2020.
-- For the six months ended 30 June 2021, the return on equity was 18.15%, and the return on total assets was 3.43%.
In the Reporting Period, the Group recorded revenue of RMB5,007.5 million, representing an increase of 24.4% as compared to the corresponding period of the previous year, as a result of more medical institutions being consolidated into the Group's financial statements and financial business growing steadily; recorded profit for the period of RMB1,125.5 million, representing an increase of 30.7% as compared to the corresponding period of the previous year; recorded profit for the period attributable to the owners of the parent of RMB1,050.0 million, representing an increase of 32.3% as compared to the corresponding period of the previous year; and recorded total assets of RMB69,894.9 million as of 30 June 2021, representing an increase of 13.6% as compared to the end of 2020, with a debt ratio of 75.18% and asset quality generally safe and controllable.
Hospital Group Expanded in Scale, with Operating Benefit Improved Steadily
Hospital group is the essential resources of building a healthcare conglomerate. In the first half of 2021, the Group continued to actively participate in integration and takeover of medical institutions of SOEs, and advanced the completion and consolidation of contracted projects in an orderly manner. As of 30 June 2021, the Group had entered into contracts in relation to the takeover of 56 medical institutions (including 5 Grade III Class A hospitals and 29 Grade II hospitals) with actual capacity of over 15,000 beds in total, and had consolidated 41 medical institutions (including 3 Grade III Class A hospitals and 19 Grade II hospitals), with actual capacity of 10,082 beds in total.
In terms of consolidated revenue, in the Reporting Period, the hospital group recorded revenue of RMB2,118.4 million during the consolidation period, representing an increase of 37.2% as compared to the corresponding period of the previous year, mainly due to the consolidation of additional medical institutions. Revenue from integrated healthcare services reached RMB1,985.5 million, representing an increase of 35.2% as compared to the corresponding period of 2020; revenue from supply chain business reached RMB390.5 million, representing an increase of 76.1% as compared to the corresponding period of 2020.
In terms of operations, in the first half of 2021, the total number of medical treatments in the consolidated medical institutions of the Group was 2,937,210, representing an increase of approximately 38.5% as compared with the corresponding period of the previous year, and an increase of approximately 13.3% as compared with the corresponding period of 2019. The revenue of hospital operation for the first half of 2021 reached RMB2,004.0 million in total, representing an increase of approximately 19.1% as compared with the corresponding period of last year, and an increase of approximately 11.7% as compared with the corresponding period of 2019. The income per bed of the consolidated Grade III hospitals reached approximately RMB600,000 on an annualised basis, and the overall income per bed of the Group's medical institutions increased to nearly RMB400,000 on an annualised basis.
Upholding the philosophy of providing quality medical care, the Group promotes post-investment management of medical institutions in an orderly manner, establishes three core competence systems of "discipline", "operation" and "service" for its hospital management team, and builds the hospital group with the advantages of safe, effective, accessible and humanistic services. Moreover, relying on the development foundation of the hospital group, the Group expands business layout in various fields including equipment sales, equipment maintenance, medical inspection, health care and insurance, and actively expands external customers while efficiently serving the Group's member hospitals to gradually lay a foundation for development in scale.
Enhance the Foundation of Finance Sector, and Ensure Stable and Sound Development of Business
The Group's financial business mainly focuses on financial leasing business. The Group strives to build an innovative, high-quality and efficient finance service model, and to provide the Group with a base to achieve high-quality development. In the first half of this year, the Group continued to work meticulously in key niche market, accurately responded to customers' demands, and improved business development efficiency. Meanwhile, the Group continued to improve risk management and control to ensure the safe and healthy development of the Group's business; kept up with changes in the financial situation, and reasonably controlled financing costs to meet capital demand of the Group's business.
In the Reporting Period, the Group recorded interest income from finance services of RMB2,262.0 million, representing an increase of 10.4% as compared with the corresponding period of the previous year; and gross profit of interest margin of RMB1,399.3 million, representing an increase of 28.3% as compared with the corresponding period of the previous year. Various business indicators maintained a sound level, with an average yield of interest-earning assets of 7.79%, an average cost rate of interest-bearing liabilities of 3.84%, a net interest spread of 3.95%, and a net interest margin of 4.49%.
The Group continued to optimize the dynamic management of pre-rental, rental, and post-rental process, and enhanced accountability to make every effort to ensure the quality of assets. As of 30 June 2021, the net interest-earning assets of the Group reached RMB59,942.3 million, representing an increase of 12.0% from the beginning of the year. The non-performing asset ratio was 0.98%; the overdue ratio (30 days) was 0.85%; and the provision coverage ratio was 216.28%. The overall asset quality was safe and controllable, and continued to maintain its leading position in the industry.
Prospect for the Future
2021 is a crucial year for the Group to carry out its strategies and enhance its core capabilities. In the second half of the year, the Group will continue deploying business development in accordance to China's 14th Five-Year Plan and calmly coping with various risks and challenges to strictly control risks in the financial business and develop steadily. The Group will make the medical business better and stronger and give full play to its characteristics. The layout of the Group's health business will be improved to lay a solid foundation for future development. Committed to the mission of protecting life and health with quality medical care, the Group will strive for breakthroughs in the quality development of the Group as a whole, and make relentless efforts to build a trustworthy healthcare conglomerate, and create greater value and return for all shareholders.
About Genertec Universal Medical Group Company Limited
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 56 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 15,000 beds. In the future, Universal Medical will continue to grasp opportunities posed by China's healthcare sector, actively respond to the "Health China 2030" program and make contributions to China's public health industry.
This press release is issued by ICA Investor Relations (Asia) Limited on behalf of Genertec Universal Medical Group Company Limited.
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ICA Investor Relations (Asia) Limited
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