On Aug. 21st, Universal Medical Financial & Technical Advisory Services Company Limited (Universal Medical) held Interim Results Announcement. Mr. GuoWeiping, CEO and Executive Director and Ms. PengJiahong, CFO and Executive Director presented at the announcement.

In the first half of 2015, Universal Medical achieved constant and steady growth in operating performance. Universal Medical realized a revenue of RMB982.1 million, representing an increase of 45.9%; profit before tax was RMB368 million, representing an increase of 55.8%; by the end of June, Universal Medical’s total assets amounted to RMB18,386 million, representing an increase of 12.2% as compared with that at the end of 2014. The total shareholders’ equity amounted to approximately RMB2,707 million, representing an increase of 11.5% as compared with that at 31 December 2014; Return on equity was as high as 21.03% and return on assets 3.11%.

Universal Medical generates its revenue primarily from (1) finance lease services (2) advisory services, including industry, equipment and financing advisory services; and (3) clinical department upgrade services, including clinical department upgrade advisory services, operating lease services and sales of medical equipment. In the first half of 2015, the finance lease income wasRMB704 million, an increase by 45.1% compared to the same period last year; theindustry, equipment and financing advisory income was RMB252 million, anincrease by 49.0% compared to the same period last year; and the revenue fromclinical department upgrade services was RMB35 million, an increase by 33.7%compared to the same period last year. In the clinical department upgrade services, theadvisory services income increased by 86.3% to RMB27 million in the first half of2015 from that in the same period last year.

In terms of medical equipment financing business, Universal Medical continued to expand itssales and marketing network to target existing and potential hospital customers, andenhanced the its risk management capabilities. During the first half of 2015,Universal Medical has established sales representative offices in a number of key cities ofShandong, Henan, Hunan, Sichuan and Shaanxi provinces,with a view to further penetrate regionaland county-level hospitals, market the finance lease business and  facilitate theprovision of integrated healthcare solutions to hospitals located in these provinces.In terms of clinical department upgrade services, Universal Medical continued to optimize cerebrovascular accident (“CVA”) project solutions and replicated the successful CVA project solutions model in    other clinical areas such as anesthesia,ophthalmology, otolaryngology and    oncology. These solutions brought greatcross-selling opportunities to Universal Medical for equipment sourcing solutions andfinance lease business.Meanwhile, Universal Medical further strengthened the network ofinternal and external experts in these clinical areas to develop additional solutions andstrengthen its equipment introduction.

Looking into the future, for business development, Universal Medical will vigorouslydevelop new businesses such as hospital management and digitalization services, so asto complement existing integrated services, and will also effectively promote goodinteraction between healthcare financing, healthcare technical services, hospital management and hospital  digitalization  services. For management initiatives, Universal Medical will continue to deepen the cooperation with international renownedhealthcare    institutions, recruit professional talent needed for new businessdevelopment and enlarge the size of external experts. Universal Medical will alsoestablish project group comprising internal and external experts and stimulate their creativity through information and knowledge sharing while aligning the   skill,execution ability and ethics of its employees with the corporate culture,  so as toimplement the its strategies; for resources integration, Universal Medical willactively strengthen the construction of medical resources  platform which integratescapital, technology, equipment, experts,   consulting and training functions. Universal Medical will focus on expanding well-known experts and institutional resources inhospital management and digitalization areas and maximize the advantages of its resource platform.

Mr. GuoWeiping, Executive Director of Universal Medical Financial & TechnicalAdvisory Services Company Limited, believed “driven by various PRC policies suchas county level hospital reform, the introduction of social capital to medical industryand the implementation of PPP mode, medical system reform will further deepen andbring a historic development opportunity for the healthcare services industry. In thesecond half of the year, Universal Medical will fully grasp the opportunities brought bymedical industry policies, to achieve the following in compliance with requirementsof applicable laws and regulations and the guidance of national policies, leveraging onUniversal Medical’s large hospital customer base and extensive industry knowledge, andUniversal Medical will further improve the Company’s corporate governance system,stimulate vitality, improve efficiency, maintain a healthy and stable development andconstantly enhance corporate value.”