Hong Kong Exchanges and Clearing : ANNOUNCEMENT OF THE RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2019

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Jinxin Fertility Group Limited

錦 欣 生 殖 醫 療 集 團 有 限 公 司 *

(Incorporated under the laws of the Cayman Islands with limited liability)

(Stock Code: 1951)

ANNOUNCEMENT OF THE RESULTS

FOR THE SIX MONTHS ENDED JUNE 30, 2019

FINANCIAL HIGHLIGHTS

• Revenue of the Group for the six months ended June 30, 2019 was approximately RMB791.1 million, representing an increase of 92.1% when compared with that of approximately RMB411.8 million for the six months ended June 30, 2018.
• Gross profit of the Group for the six months ended June 30, 2019 was approximately RMB380.9 million, representing an increase of 100.3% when compared with that of approximately RMB190.1 million for the six months ended June 30, 2018.
• Net profit of the Group for the six months ended June 30, 2019 was approximately RMB178.0 million, representing an increase of 64.8% when compared with that of approximately RMB108.0 million for the six months ended June 30, 2018. Adjusted net profit(1) of the Group for the six months ended June 30, 2019 was approximately RMB256.6 million, representing an increase of 102.1% when compared with that of approximately RMB126.9 million for the six months ended June 30, 2018.
• EBITDA of the Group for the six months ended June 30, 2019 was approximately RMB276.1 million, representing an increase of 73.5% when compared with that of approximately RMB159.2 million for the six months ended June 30, 2018. Adjusted EBITDA(2) of the Group for the six months ended June 30, 2019 was approximately RMB347.1 million, representing an increase of 103.6% when compared with that of approximately RMB170.4 million for the six months ended June 30, 2018.
• Basic earnings per share for the six months ended June 30, 2019 amounted to RMB0.09. Adjusted basic earnings per share(3) for the six months ended June 30, 2019 amounted to RMB0.12.

Notes:

1. Adjusted net profit is calculated as net profit for the Reporting Period, excluding (i) Listing expenses; (ii) ESOP expenses; (iii) amortization and depreciation of medical practice license and property, plant and equipment arising from Shenzhen Zhongshan Hospital acquisition; and (iv) imputed interest income from related parties to better reflect the Company's current business and operations.
2. Adjusted EBITDA is calculated as EBITDA for the Reporting Period, excluding (i) Listing expenses; (ii) ESOP expenses; and (iii) imputed interest income from related parties to better reflect the Company's current business and operations.
3. Adjusted basic earnings per share is calculated as adjusted net profit divided by weighted average number of ordinary shares for the purpose of calculating basic earnings per share.

1

• The Board does not recommend payment of an interim dividend for the six months ended June 30, 2019 (for the six months ended June 30, 2018: nil).

Non-IFRS Measures

To supplement the Group's condensed consolidated financial statements which are presented in accordance with IFRS, the Company has provided adjusted net profit, adjusted net profit margin, adjusted EBITDA, adjusted EBITDA margin and adjusted basic earnings per share as non-IFRS measures, which is not required by, or presented in accordance with, IFRS. The Company believes that the adjusted financial measures provide useful information to investors in understanding and evaluating the Group's condensed consolidated statements of profit or loss in the same manner as they helped the Company's management, and that the Company's management and investors may benefit from referring to these adjusted financial measures in assessing the Group's financial and operating performance from period to period by eliminating impacts of items that the Group does not consider indicative of the Group's operating performance. However, the presentation of these non-IFRS financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. You should not view the adjusted results on a stand-alone basis or as a substitute for results under IFRS.

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INTERIM RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2019

The Board of Directors is pleased to announce the unaudited condensed consolidated interim results of the Group for the six months ended June 30, 2019, together with the comparative figures for the corresponding period in 2018 as follows:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended June 30, 2019

		Six months ended
		June 30,
	NOTES	2019		2018
		RMB' 000	RMB' 000
		(unaudited)	(unaudited)
Revenue	3	791,120		411,838
Cost of revenue		(410,269)	(221,704)
Gross profit		380,851		190,134
Other income	4	19,053		10,783
Other gains and losses	5	15,497		(1,270)
Research and development expenses		(5,770)	(5,579)
Administrative expenses		(99,245)	(37,081)
Listing expenses		(61,620)	(14,878)
Finance costs	6	(4,385)	-
Profit before taxation	7	244,381		142,109
Income tax expenses	8	(66,423)	(34,095)
Profit for the period		177,958		108,014
Other comprehensive (expense) income:
Item that will not be reclassified to profit or loss:
Exchange difference on translation from functional		(20,724)
currency to presentation currency		-
Item that may be reclassified subsequently to profit
or loss:
Exchange differences on translation of		12,467
foreign operations			-
Other comprehensive expense for the period		(8,257)	-
Total comprehensive income for the period		169,701		108,014
Profit for the period attributable to:
	170,163
- Owners of the Company			67,457
- Non-controlling interests		7,795		40,557
		177,958		108,014

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		Six months ended
		June 30,
	NOTE	2019	2018
		RMB' 000		RMB' 000
		(unaudited)		(unaudited)
Total comprehensive income for the period
attributable to:
- Owners of the Company		162,826	67,457
- Non-controlling interests		6,875		40,557
		169,701	108,014
Earnings per share:
- Basic (RMB)	10	0.09		0.14
- Diluted (RMB)		0.08	0.14

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at June 30, 2019

		As at		As at
		June 30,		December 31,
	NOTES	2019	2018
		RMB' 000		RMB' 000
		(unaudited)		(audited)
Non-current assets
Property, plant and equipment		872,874	137,737
Right-of-use assets		167,138		-
Goodwill		803,573	802,051
License		394,708	401,285
Contractual right to provide management services		1,944,518	1,939,049
Trademark		1,295,381	1,292,432
Equity instrument at fair value through other
comprehensive income ("FVTOCI")		9,877	9,990
Refundable deposits	11	944	2,082
Prepayments	11	-	100,000
Amounts due from related parties		-		438,165
		5,489,013	5,122,791
Current assets
Inventories		24,956	16,548
Accounts and other receivables	11	24,612	76,920
Amounts due from related parties	11	24,065	70,894
Tax recoverable		-	934
Structured bank deposit		20,000	20,000
Financial assets at fair value through profit or
loss ("FVTPL")		37,500	65,010
Bank balances and cash		3,097,186		1,184,190
		3,228,319	1,434,496
Assets classified as held for sale		-		1,021
		3,228,319	1,435,517
Current liabilities
Accounts and other payables	12	428,326	367,323
Dividend payables		318,552	23,727
Amounts due to related parties	12	136,767	916,985
Lease liabilities		14,728		-
Tax payables		40,779		68,765
		939,152	1,376,800

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