(Hong Kong, 22 August 2017) Universal Medical Financial & Technical Advisory Services Company Limited ("Universal Medical" or "the Company"; stock code:2666) gives a press conference on 2017 interim results in Hong Kong. Mr. Guo Weiping, CEO of the Company, and Ms. Peng Jiahong, CFO of the Company, attend the press conference. Meanwhile, they presents the Company’s interim financial performance and answers questions from investors and analysts. 

Since the incorporation of the Group, it has accumulated and integrated extensive domestic and overseas quality healthcare resources, and continuously promoted the coordinated development of various business segments. Adhering to the spirit of “broadness and abundancy, selectivity and action”, it has continuously consolidated its operational foundation and achieved a steady growth in operating results for years. In the first half of 2017, the Group’s revenue increased by 32.2% to RMB1,653.9 million, profit before tax increased by 46.3% to RMB799.9 million and the profit for the period increased by 48.6% to RMB578.9million as compared to the corresponding period of last year. Net interest spread of the Group’s finance lease business hit a new high of 3.64%.

In the first half of 2017, the Group’s gross profit was RMB1,079.6 million, increasing by RMB293.9 million, or 37.4%, as compared to the corresponding period of last year. In particular, interest margin gross profit of finance lease business was RMB653.8 million, representing an increase of RMB194.5 million, or 42.3%, as compared to the corresponding period of last year; gross profit of industry, equipment and financing advisory services was RMB352.0 million, representing an increase of RMB87.6 million, or 33.1%, as compared to the corresponding period of last year; and gross profit of clinical department upgrade services was RMB69.3 million, representing an increase of RMB9.2 million, or 15.3%, as compared to the corresponding period of last year.

Hospital Investment and Management Business– Move Steadily Forward for Win-win Cooperation

In the development of hospital investment and management business, the Group has formedits unique development strategy in respect of geographical selection, hospital positioning,cooperation model and business deployment by closely following the changes in policies and market, and leveraging on its advantage in resources. The Group has signed a definitive agreement with First Affiliated Hospital of Xi’an Jiaotong University (西安交通大學第一附屬醫院) (“First Affiliated Hospital”), a large-scale comprehensive Grade III Class A hospital administered directly by National Health and Family Planning Commission (the“NHFPC”) on the joint establishment of International Land Port Hospital to be promoted by First Affiliated Hospital (“International Land Port Hospital”); meanwhile, the Group also entered into framework agreements with a number of hospitals in various regions,where a number of projects are under negotiation.

The Group steadily and fully implemented the planning and construction of International Land Port Hospital. The Group developed a core work platform for disciplinary planning with clinical experts from First Affiliated Hospital and based on thorough investigation both parties jointly drafted a clinical department plan which was in line with the healthcare market development and hospital development positioning. Focusing on the key targeted disciplines including tumour, maternity and reproduction, neurology, angiocarpy and orthopedics, the clinical department plan sets out scientific and precise designing for technical improvement, equipment configuration and management procedure. Currently, the designing work of International Land Port Hospital is in the course of plan optimization. On the other hand, in order to smoothly carry on the supply chain business in relation to First Affiliated Hospital and International Land Port Hospital, a systematic hardware upgrade in Shaanxi Huahong, a supply chain company purchased by the Group, has been completed while the newly-built warehouse of 5,000 sq.m. has the capacity to accomodate the procurement size of medicines and consumables required in the business cooperation. The Group and First Affiliated Hospital have agreed to build up a transparent medical supplies procurement management platform at Xi’an Wanheng to manage all the drugs, consumables and medical equipment of First Affiliated Hospital. This platform will be the only gateway and supplier of First Affiliated Hospital to conduct all business including procurement, check-out and payment auditing. The Group will start to take charge of the delivery of drugs, consumables and medical equipment of First Affiliated Hospital in the second half of 2017.

Healthcare Finance Business– Forge Ahead at a Steady Pace

 In the first half of 2017, the Group’s healthcare finance business forged ahead against the backdrop of macroeconomic changes and maintained a good development momentum. The yield on interest-earning assets remained stable and the cost of interest-bearing liabilities decreased substantially, which resulted in the net interest spread increased by 0.48 percentage point from 3.16% in the first half of 2016 to 3.64% in the first half of 2017.Meanwhile, the Group’s assets quality remained healthy, the yield on interest-earning assets remained stable and the cost of interest-bearing liabilities decreased substantially. Continuously improve financing capability and constantly optimise financing structure.

Clinical Department Upgrade Services– Expand the Way of Thinking and Give Playto Advantage

 With the continuous building up of healthcare resources, the Group has been exploring new models for its clinical department upgrade services. In the first half of 2017, the gross profit of the Group’s clinical department upgrade services reached RMB69.3 million, representing an increase of 15.3% as compared to the corresponding period of last year. The provision of the innovative clinical department upgrade services enabled the Group to integrate its capital, equipment and technical services more cohesively, laying a more solid foundation for its healthcare service business.

When it comes to future prospects, Mr. Guo Weiping, the Executive Director and Chief Executive Officer of Universal Medical said that, “The Group will keep a steady growth during 2017 and achieve a synergetic development among different business segments. For the next half of the year, we will continue to firmly develop our healthcare financing business, making it a profit generator for the steady growth of the Group’s results and a solid foundation for our innovative business development. Meanwhile, we will vigorously develop our hospital investment and management business, making it a catalyst for the rapid growth of the Group’s results in the future. The Group will carry out International Land Port Hospital project in an orderly and accelerated manner. According to monthly work targets, we will finish the designing of main building by the end of the year, strictly control the progress and budget of the designing and construction of the hospital to ensure that the project will be completed as scheduled within the budget. The Group will vigorously move forward the task of taking charge of the procurement and supply of medicines and consumables for First Affiliated Hospital, and it is expected that the Group will begin to undertake this business in the second half of 2017. Besides, we will continue to carry on other projects across the country including Handan First Hospital project.”