Concord Healthcare Group (2453) H2 2023 earnings summary

Executive summary

• Revenue rose 14.1% YoY to RMB538.7 million; gross loss narrowed 54.3% to RMB65.1 million and net loss narrowed 33.1% to RMB426.4 million.

• Adjusted net loss, excluding interest on redeemable capital contribution and listing expenses, declined 10.7% to RMB420.6 million.

Financial highlights

• Revenue increased from RMB472.2 million in 2022 to RMB538.7 million in 2023; cost of revenue declined 1.8% to RMB603.7 million.

• Gross loss narrowed to RMB65.1 million from RMB142.6 million; gross margin improved to negative 12.1% from negative 30.2%.

• Net loss narrowed to RMB426.4 million from RMB637.2 million; loss per share was RMB0.56 versus RMB1.13.

• Finance costs fell 60.7% to RMB108.0 million, primarily after redeemable capital contributions were extinguished in 2022.

• Other income and net gains fell to RMB10.0 million from RMB63.4 million, partly due to a one-off RMB50.0 million compensation receipt in 2022.

Outlook and guidance

• Priorities include advancing proton therapy, completing supporting facilities, and increasing R&D investment, particularly for proton equipment registration and application.

• Plans include expanding medical institutions, improving service quality, and developing internet hospital services and oncology insurance partnerships.

• 2024 plans include expanding equipment and cloud-service projects, with CSS cooperation targeting county-level public hospitals and radiotherapy, nuclear medicine and imaging.