The UMP Healthcare Holdings Limited 2024/2025 Interim Report covers the six months ended 31 December 2024, presenting financial and operational highlights amid a challenging macroeconomic environment in Hong Kong, including rising interest rates, inflation, and cautious consumer sentiment.

Financial Performance:

• Total revenue slightly decreased by 1.2% to HK$371.3 million compared to the prior period, with growth in corporate healthcare solutions offset by declines in clinical healthcare services, particularly due to normalizing immigration medical examination volumes and increased cross-boundary competition.
• EBITDA rose 17.0% to approximately HK$46.6 million, reflecting improved operational efficiencies from workforce optimization and cost control measures.
• Net profit significantly increased by 45.7% to HK$19.2 million largely due to reduced operating expenses such as professional services fees and property rentals.
• Earnings per share grew to HK2.25 cents from HK1.96 cents previously, and an interim dividend of HK1.40 cent per share was declared, up from HK1.30 cent.

Business Segment Review:

• The Hong Kong and Macau Corporate Healthcare Solutions segment showed resilience with revenue up 4.1% driven by strong demand from corporate clients and insurers, supported by network expansion, particularly in Mainland China’s Greater Bay Area.
• Hong Kong and Macau Clinical Healthcare Services faced revenue decline of 3.4%, primarily due to fewer immigration medical exams and cross-border competition. UMP responded with clinic consolidations, service diversification including Traditional Chinese Medicine and physiotherapy, and adoption of AI for imaging diagnostics.
• Mainland China Clinical Healthcare Services saw modest revenue growth of 3.7%, but profit declined due to higher operating costs, with stable patient visits signaling steady demand.

UMP emphasized operational excellence, digital transformation, and financial discipline to sustain growth. Investments in digital platforms, including a new patient management system and AI-assisted diagnostics, aimed to improve efficiency and patient experience. The company also strengthened public-private partnerships and leveraged cross-boundary healthcare opportunities within the Greater Bay Area.

Financial Position:

• Cash, bank balances and deposits increased to HK$303.3 million, ensuring strong liquidity, with no bank borrowings, and a stable gearing ratio of approximately 7.1%.
• Lease liabilities and right-of-use assets were managed effectively through consolidation, reducing related costs by about 15%.
• Capital expenditures were modest at HK$4.3 million for the period, with minimal outstanding capital commitments.

In summary, despite external economic challenges and sector-specific pressures, UMP Healthcare Holdings Limited demonstrated resilient financial and operational performance in the first half of FY24/25, achieving higher profitability through efficiency improvements and strategic initiatives, while positioning itself well for future growth in integrated healthcare delivery across Hong Kong, Macau, and Mainland China.

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” I, Ni Kwok Kuen Alex, am a licensed person under the Securities and Futures Commission. Until the date this commentary was published, neither I and/or my affiliates are the beneficiary of the securities mentioned herein or are entitled to any financial interests in relation thereto. “