Sinohealth Technology Holdings (2361) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 11.1% to RMB396.2m; gross profit increased 40.5% to RMB223.5m and profit for the year grew 86.2% to RMB100.9m.

• Gross margin expanded to 56.4% from 44.6%, reflecting a shift toward higher-margin products and services and tighter operating management.

• Corporate customers reached 1,288, up 44.6% YoY; leading pharmaceutical and medical device customers had a 95.7% repurchase sales rate.

• More than 500 signed contracts were pending execution at year-end, with total contract value of RMB154.1m, up 79.2% YoY.

Financial highlights

• Revenue was RMB396.194m versus RMB356.668m in FY2022; cost of sales fell 12.6% to RMB172.722m.

• Gross profit rose 40.5% to RMB223.472m; profit before tax increased 103.3% to RMB110.741m.

• Profit for the year increased 86.2% to RMB100.940m; basic and diluted EPS rose to RMB0.2394 from RMB0.1358.

• Other income and gains increased 9.5% to RMB41.285m, including RMB26.668m bank interest income.

Outlook and guidance

• Strategy prioritises expanding To B SaaS and professional services, developing To C health management, and building a To R biomedical R&D digital platform.

• Smart Decision Cloud plans to broaden data sources, develop predictive models and expand standardised SaaS tools and consulting services to support customer growth.

• Woodpecker AI-MDT is planned for broader hospital and examination-centre deployment, alongside expanded post-examination and individual health services.

• Remaining performance obligations were RMB154.146m at year-end, versus RMB86.029m in FY2022; RMB123.004m was expected to be recognised within one year.