Universal Medical (2666.HK) Announces 2022 Annual Results
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
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