Genertec Universal Medical Group Company Limited (the Company or Universal Medical, and together with its subsidiaries, the Group; HKG: 2666) is pleased to announce annual results for the year ended 31 December 2021.
FINANCIAL HIGHLIGHTS
- For the year ended 31 December 2021, the revenue amounted to approximately RMB9,914.3 million, representing an increase of 16.3% as compared with that of approximately RMB8,521.2 million for 2020.
- For the year ended 31 December 2021, the profit before tax amounted to approximately RMB2,691.8 million, representing an increase of 13.8% as compared with that of approximately RMB2,365.0 million for 2020.
- For the year ended 31 December 2021, the profit for the year attributable to owners of the parent amounted to approximately RMB1,835.2 million, representing an increase of 11.4% as compared with that of approximately RMB1,647.5 million for 2020.
- As at 31 December 2021, the total assets amounted to approximately RMB69,899.8 million, representing an increase of 13.6% as compared with that of approximately RMB61,511.0 million as at 31 December 2020.
- As at 31 December 2021, the equity attributable to owners of the parent amounted to approximately RMB13,104.0 million, representing an increase of 21.7% as compared with that of approximately RMB10,770.5 million as at 31 December 2020.
- For the year ended 31 December 2021, the return on equity was 15.37%, and the return on total assets was 3.09%.
2021 was the opening year of the “14th Five-Year Plan”. The Group fulfilled the responsibilities as a central enterprise, adhered to serving the “Healthy China” strategy, and firmly moved forward in the field of medical and healthcare. In 2021, the Group steadily promoted business and improved overall operating performance with a revenue of RMB9,914.3 million, representing an increase of 16.3% as compared to the previous year; net profit of RMB2,030.5 million, representing an increase of 11.9% as compared to the previous year; net profit attributable to owners of the parent of RMB1,835.2 million, representing an increase of 11.4% as compared to the previous year; return on total assets (ROA) of 3.09%, and return on equity attributable to ordinary shareholders (ROE) of 15.37%.
Hospital Group Improved Quality and Efficiency, with Net Profit Increasing by 39.5%.
In 2021, the Group continued to consolidate the accounts of medical institutions into its own hospital group, and in the context of normalized pandemic prevention and control, the Group orderly advanced the post-investment management of medical institutions, and continuously enhanced the three core capabilities of “discipline”, “operation” and “service”, to build the overall advantages of the hospital group in terms of safety, effectiveness, accessibility, and humanities as a way to achieve steady progress in operating efficiency. As of 31 December 2021, the number of consolidated medical institutions increased to 45 (including 3 Grade III Class A hospitals and 20 Grade II hospitals), with a total of 10,376 beds. The hospital group launched a total of 372 construction projects, including 10 new outpatient and inpatient multifunction building projects, with a planned number of new beds exceeding 4,000 in total. In 2021, the hospital group contributed a revenue of RMB4,608.4 million to the Company, representing an increase of 27.2% as compared to the previous year, and its proportion in the total revenue from the business of the Group increased from 42.5% in 2020 to 46.5%. Without taking into account the hospital investment platform, the hospital group achieved a total gross profit of RMB585.0 million, representing an increase of 53.9% as compared to the previous year, a total net profit of RMB214.3 million, representing an increase of 39.5% as compared to the previous year, a gross profit margin from operations of 12.7% and a net profit margin of 4.65%.
From the perspective of operation, in the post-pandemic era, the number of beds and the overall operation of its medical institutions have shown a recovery growth. Meanwhile, with the implementation of group management and control of hospitals, the core capabilities of disciplines, operations and services have been gradually improved to lay the groundwork for sustainable growth trends in the healthcare business. Income per bed steadily increased from approximately RMB380,000 in 2019 to approximately RMB420,000 in 2021, and the efficiency of bed use was further improved; the volume of outpatient and emergency businesses increased significantly, overall outpatient and emergency visits in 2021 increased by 945,800 as compared to that of 2019, with a growth rate of 19.9%, which exceeded the market average rate; the structure of hospital expenses was optimized, and the average inpatient expenses of Grade II hospitals increased organically, with an increase of 10% as compared to that of 2019.
The Expansion of the Industrial Chain Achieved Initial Results, and the Advantages of Large-scale Development was Gradually Established
Focusing on the core resources of the hospital group, the Group consolidated the business foundation in various fields such as Internet-based healthcare, equipment maintenance, and medical testing over the past year. While efficiently serving the Group’s internal hospitals, the Group actively expanded external customers and gradually established advantages from scalable development. For instance, in terms of Internet-based healthcare, the Internet-based healthcare platform “Universal Healthcare” became a unified Internet portal for the healthcare group, the core carrier of the healthcare industry chain business, and provided support and assistance for the digital management of specialties. As of 31 December 2021, “Universal Healthcare” was officially launched for 34 internal and external medical institutions with more than 3,000 online doctors and 750,000 registered users, and served more than 2 million people. It has developed an online + offline service model, and realized a one-stop medical treatment for patients covering the whole process; in terms of equipment maintenance, the Group actively promoted an advanced business model of “managing medical equipment for a full life cycle” to provide hospitals with standardized maintenance service and comprehensive equipment operation and management services. As of 31 December 2021, the Group maintenance business recorded an annual revenue of RMB36.96 million, representing an increase of 194.8% as compared to 2020; in terms of medical testing, relying on clinicians and medical teams from subordinate medical institutions, the Group has carried out medical testing business to provide more accurate and professional testing services to local medical institutions nearby. Among them, the testing center of Xi’an XD Group Hospital recorded an annual revenue of RMB89.96 million, representing an increase of 48.3% as compared to 2020.
Financial Business Developed Steadily, with an Increase of 15.6% in Gross Profit of Interest Margin
With years of experience in the industry, the Group has built efficient market capabilities, flexible financing capabilities, and professional risk control capabilities to provide customers in public hospitals, public utilities and other fields with comprehensive financial solutions centered on financial leasing, as well as industry, equipment and financing consulting, department upgrade and other services, which has fully guaranteed the continuous profitability of the Group as the hospital group grows. In 2021, as the regulatory system for the financial business of central enterprises was further improved, we further enhanced operation and management capabilities on the basis of sound risk prevention and mitigation to steadily advance financial business. The Group recorded interest income of finance services of RMB4,469.0 million, representing a year-on-year increase of 8.3%, and the gross profit of interest margin of RMB2,640.6 million, representing a year-on-year increase of 15.6%. The net interest spread was 3.56%, and the net interest margin was 4.05%. All of the aforesaid business indicators remained at a leading position in the industry.
While its financial business continues to expand steadily, the asset quality remains at an industry-leading level. As of 31 December 2021, its net interest-earning assets reached RMB61,127.6 million, representing an increase of 11.9% from the beginning of the year; the non-performing asset ratio was 0.98%, representing a decrease of 0.02 percentage point from the end of 2020; the overdue ratio (30 days) was 0.76%, representing a decrease of 0.18 percentage point from the end of 2020; and the provision coverage ratio was 238.29%, representing an increase of 32.77 percentage points from the end of 2020.
Prospect for the Future
In next year, following the overall deployment of the “14th Five-Year Plan”, the Group will continue to actively carry out the mission of safeguarding life and health with quality medical care, give full play to the advantages of group-based management and control to comprehensively improve the lean management, and build a digital hospital management group. The Group will build core capabilities in pursuing integrated development of featured specialties such as oncology and nephrology, and extend industrial chain services around the core resources of the hospital group to make breakthroughs in the high-quality development of the entire group, and create greater returns for all Shareholders!
About Genertec Universal Medical Group Company Limited (2666.HK)
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 62 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 30 Grade II hospitals, with a total of more than 16,000 beds. In the future, Universal Medical will continue to grasp opportunities posed by China’s healthcare sector, actively respond to the “Health China” program and make contributions to China’s public health industry. www.universalmsm.com.
This press release is released by PEANUT MEDIA LIMITED on behalf of Genertec Universal Medical Group Company Limited.
For further information, please contact:
PEANUT MEDIA LIMITED
Lu Jing / Jing Gao
Direct Line: +0755-61619798+8210
Email: hswh@czgmcn.com
