Universal Health Intl : 2017 INTERIM REPORT...

UNIVERSAL HEALTH INTERNATIONAL GROUP HOLDING LIMITED‌‌‌‌‌‌‌‌

大健康國際集團控股有限公司

(incorporated in the Cayman Islands with limited liability)

Stock Code: 2211

2017

INTERIM REPORT

interim Report 2017

Contents

Page

Corporate Information 2

Financial Highlights 3

Management Discussion and Analysis 4

Report on Review of Interim Financial Information 15

Condensed Consolidated Balance Sheet 16

Condensed Consolidated Statement of Comprehensive Income 18

Condensed Consolidated Statement of Changes in Equity 19

Condensed Consolidated Cash Flow Statement 20

Notes to the Condensed Consolidated Interim Financial Information 21

Other Information 46

1

Universal health international group holding limited

Corporate Information

BOARD OF DIRECTORS

Executive Directors:

Mr. Jin Dongtao (Chairman)

(Chief Executive Officer, appointed on 23 March 2017)

Mr. Jin Dongkun (Vice Chairman)

Mr. Chu Chuanfu (Chief Executive Officer, resigned on 23 March 2017)

Mr. Zhao Zehua

Mr. Sun Libo (appointed on 23 March 2017)

Independent Non-executive Directors:

Mr. Cheng Sheung Hing Ms. Chiang Su Hui Susie

Ms. Hao Jia (resigned on 20 July 2017)

Mr. Zou Haiyan (appointed on 20 July 2017)

AUDIT COMMITTEE

Ms. Hao Jia (Chairman, resigned on 20 July 2017)

Mr. Zou Haiyan (Chairman, appointed on 20 July 2017)

Mr. Cheng Sheung Hing Ms. Chiang Su Hui Susie

REMUNERATION COMMITTEE

Mr. Cheng Sheung Hing (Chairman)

Ms. Chiang Su Hui Susie

Mr. Chu Chuanfu (resigned on 23 March 2017)

Mr. Jin Dongkun (appointed on 23 March 2017)

NOMINATION COMMITTEE

Mr. Jin Dongtao (Chairman) Mr. Cheng Sheung Hing Ms. Chiang Su Hui Susie

AUTHORIZED REPRESENTATIVES

Mr. Leung Yi Kok (resigned on 6 June 2017) Mr. Ge Junming (appointed on 6 June 2017) Mr. Zhao Zehua

COMPANY SECRETARY

Mr. Leung Yi Kok (resigned as Joint Company Secretary on 6 June 2017)

Mr. Ge Junming (appointed as sole Company Secretary on 6 June 2017)

REGISTERED OFFICE

PO Box 309

Ugland House

Grand Cayman, KY1-1104 Cayman Islands

HEADQUARTERS

No. 15

Baogongbei Street Tiexi District Shenyang, PRC

PRINCIPAL PLACE OF BUSINESS IN HONG KONG

Room No. 907B

9th Floor, Empire Centre 68 Mody Road

Kowloon Hong Kong

PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE

Maples Fund Services (Cayman) Limited

PO Box 1093, Boundary Hall Cricket Square

Grand Cayman KY1-1102 Cayman Islands

HONG KONG SHARE REGISTRAR AND TRANSFER OFFICE

Computershare Hong Kong Investor Services Limited

Shops 1712-1716

17th Floor, Hopewell Centre 183 Queen's Road East Wanchai, Hong Kong

AUDITOR

PricewaterhouseCoopers

STOCK CODE

The Main Board of The Stock Exchange of Hong Kong Limited: 2211

INVESTOR RELATIONS

[e-mail]

COMPANY'S WEBSITE

www.uhighl.com

2

interim Report 2017

Financial Highlights

Six months ended 30 June

2017 RMB Million (Unaudited)	2016 RMB Million Change (Unaudited) (%)
Revenue	1,332.1	1,903.8 -30.0
Gross profit	274.0	519.8 -47.3
Operating (loss)/profit	(85.6)	115.3 -174.2
(Loss)/profit for the period	(83.5)	87.4 -195.5
EBITDA(1)	(62.1)	138.1 -145.0
Basic (loss)/earnings per share - RMB cents(2)	(3.39)	4.12 -182.3
Gross margin (%)	20.6	27.3 -6.7pp
Operating (loss)/profit margin (%)	(6.4)	6.1 -12.5pp
Net (loss)/profit margin (%)	(6.3)	4.6 -10.9pp

30 June 2017 (Unaudited)	31 December 2016 (Audited) Change
Current ratio (times)(3)	4.8	4.3 +0.5
Trade receivables turnover (days)(4)	22.0	22.4 -0.4
Inventory turnover (days)(5)	64.1	57.7 +6.4
Trade payables turnover (days)(6)	26.5	25.5 +1.0

Notes:

1. EBITDA is calculated by adjusting loss/earnings before interests, tax, depreciation and amortisation, excluding the effect of share of post-tax profits or losses of joint ventures and associates.

2. Basic loss/earnings per share is calculated by dividing loss/profit attributable to owners of the Company by weighted average number of ordinary shares (the weighted average number of shares for the first six months of 2017 was 2,425,311,000, versus 2,083,516,000 for the corresponding period of last year).

3. Current ratio is calculated by dividing current assets by current liabilities.

4. Trade receivables turnover days are calculated by using the average of beginning and ending balances on trade receivables for the period, divided by revenue for the period, multiplied by the number of days for the period.

5. Inventory turnover days are calculated by using the average of beginning and ending balances on inventory for the period, divided by cost of sales for the period, multiplied by the number of days for the period.

6. Trade payables turnover days are calculated by using the average of beginning and ending balances on trade payables for the period, divided by cost of sales for the period, multiplied by the number of days for the period.

3