|Tuesday, 24 March 2020, 15:15 HKT/SGT|
|Revenue Achieved Surge by 58.6%, Proceed with Hospital Group Business|
HONG KONG, Mar 24, 2020 - (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 annual results of the Company and its subsidiaries (together, the "Group") for the year ended 31 December 2019.
2019 ANNUAL RESULTS HIGHLIGHTS
- The revenue amounted to approximately RMB6,815.6 million, representing an increase of 58.6% as compared with that of approximately RMB4,296.9 million for 2018.
- The profit before tax amounted to approximately RMB2,211.9 million, representing an increase of 19.0% as compared with that of approximately RMB1,859.0 million for 2018.
- The profit for the year attributable to ordinary shareholders of the parent amounted to approximately RMB1,488.7 million, representing an increase of 10.1% as compared with that of approximately RMB1,352.2 million for 2018.
- The total assets amounted to approximately RMB57,852.5 million, representing an increase of 22.4% as compared with that of approximately RMB47,256.9 million as at 31 December 2018.
- The equity attributable to ordinary shareholders of the parent amounted to approximately RMB9,489.3 million, representing an increase of 13.0% as compared with that of approximately RMB8,395.6 million as at 31 December 2018.
- The return on equity was 16.65% and the return on total assets was 3.11%.
The year of 2019 was a crucial year for Universal Medical to construct a medical and health conglomerate, and push forward the implementation of strategic upgrading. Hospital group continued to expand and their medical finance business steadily developed, the foundation for building an advanced medical and health conglomerate is coming into form. In 2019, the Company revenue increased to RMB6,815.6 million, representing a year-on-year increase of 58.6%. Profit for the year increased to RMB1,634.4 million, representing a year-on-year increase of 21.0%. Profit for the year attributable to ordinary shareholders of the Company increased to RMB1,488.7 million, representing a year-on-year increase of 10.1%.
Further expand hospital group business
Hospital group is the most essential part of building a medical and health conglomerate. In 2019, the Company successively entered into project cooperation contracts with Ansteel Group, Pangang Group, CEC, CR State Asset and Yang Quan Coal Industry through formation of joint ventures or open market bidding, and continued to actively participate in the integration and takeover of medical institutions of SOEs. And the Company has comprehensively improved the medical technology, management efficiency and service capabilities of their hospitals by focusing on discipline construction, operation management, digitalization upgrading, supply chain management, hospital renovation and expansion, and the like.
As at 31 December 2019, the Company had signed contracts in relation to takeover of over 40 medical institutions (including 5 Grade III Class A hospitals and over 20 Grade II hospitals), with an actual capacity of over 15,000 beds. The Company had consolidated the accounts of 24 medical institutions (including 3 Grade III Class A hospitals and 12 Grade II hospitals). The hospital group business performance achieves breakthrough expansion, recorded income of RMB2,046.9 million, representing an increase of RMB1,915.2 million as compared to the previous year, and recorded profit for the year of RMB107.5 million, representing an increase of RMB115.3 million as compared to the previous year.
The Company actively extended its health industry chain around its hospital group. With respect to medical technology, the Company introduced the world's leading medical device products, and effectively improved the medical technology of hospital customers. As to their medical digitalization business, based on their member hospitals, the Company focused on three key aspects, namely Internet-based healthcare services, smart hospital solutions, and medical big data and artificial intelligence services. By so doing, the Company continuously improved its Internet-based health platform and made great efforts to build an "online+offline" service model. Regarding supply chain management, focusing on the hospital business, the Company carried out construction and deployment of a medicine supply chain system and a management platform of transparent procurement of medical supplies; it also reviewed the use of drugs and medical consumables in each hospital, continuously improved business process and standardized the centralized procurement of regional pharmaceutical supply chains.
Steady development of finance and advisory business
The Company's medical finance business mainly provides finance lease services for county-level public hospitals. In the past year, on the one hand, the Company continued to expand market development both in depth and width and continuously fortified its business foundation in the face of complicated and changing domestic and foreign financial environment and fierce market competition. On the other hand, the Company continued to strengthen risk control and actively adjusted its financing strategy, and achieved steady development of medical finance business. The Company's advisory business includes industry, equipment and financing advisory services, and clinical department upgrade services for the prevention, treatment and rehabilitation of CVA and other major diseases with high prevalence. The Company relied on its expanding medical resource platform to improve partner hospitals' medical technology service capabilities and management efficiency in accordance with specific stages of hospital operation and clinical department development's characteristics.
In 2019, the finance and advisory business recorded revenue of RMB4,768.6 million, increased by 14.5% as compared to the previous year; recorded gross profit of RMB2,842.2 million, increased by 10.5% as compared to the previous year. Finance lease business recorded revenue of RMB3,807.2 million, increased by 18.4% as compared to the previous year; recorded gross profit of RMB1,890.0 million, increased by 14.6% as compared to the previous year; the net interest spread was 3.24% and the net interest margin was 3.74%, a high ranking among domestic competitors. As at 31 December 2019, the Company's leased asset reached RMB49,785.6 million, representing an increase of 12.5% as compared with the beginning of the year; non-performing assets ratio was 0.90%, maintaining its leading position of asset quality in the industry.
In the future, Universal Medical will continue to focus on its strategic development direction in medical and healthcare sector and seize policy and market opportunities. Based on the concept of whole life cycle, the Company will strive to build a health industry closed loop centered on medical services and comprising medical finance, medical technology services, medical digitalization and industry chain extension businesses. The Company will actively explore medical and elderly care business, medical health insurance, medical engineering cooperation, regional inspection centers, logistics management and other sectors, and will continue to pool high-quality resources in the industry, improve the layout of the industry, strive to build a trustworthy medical and health conglomerate, and contribute to the construction of "Healthy China".
About Genertec Universal Medical Group Company Limited
Genertec Universal Medical Group Company Limited ("Universal Medical") is a diversified medical and health conglomerate focusing on China's fast developing healthcare service sector, which was listed in Hong Kong in July 2015 (Stock code: 2666). With reliance on modern management concepts, professional teams, high-quality medical resources, solid financial strength and inclusive corporate culture, the Company strives to build up a medical and health conglomerate centered on medical services and engaged in medical finance, medical technology, hospital digitalization and industry chain extension businesses. The controlling shareholder of Universal Medical is China General Technology (Group) Holding Co., Ltd ("Genertec"). Genertec is one of the three central state-owned enterprises focusing on medical industry.
This press release is issued by Genertec Universal Medical Group Company Limited.
Topic: Press release summary
Sectors: Daily Finance, Daily News
From the Asia Corporate News Network
Copyright © 2020 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.