Huayi Tencent Entertainment (00419) announced results for the year ended December 31, 2023, and the group obtained revenue...
According to the Zhitong Finance App, Huayi Tencent Entertainment (00419) announced the results for the year ended December 31, 2023. The group obtained revenue of HK$1,344 billion, a decrease of 15% year on year; loss due to equity holders was HK$97.087 million, a decrease of 64.04% year on year; loss per share was 0.71 HK cents.
The Group has two core businesses in the healthcare field: the digital operation service “Medicinuo” for the medical industry expanded rapidly and achieved a 56% increase in revenue in 2023; the business structure of the smart health service platform “” was further adjusted and optimized to increase cost efficiency. The Group also divested the operation of the non-core business “Beihu No. 9 Club” to further optimize cash flow and profitability.
During the year, Medicinuo's revenue increased significantly by 56% to approximately HK$944 million, accounting for 70% of the Group's revenue (2022:38%). The number of contracted pharmaceutical companies and registered doctors continued to increase, reaching 245 and 40070 respectively, an increase of 53% and 55% over the end of 2022. All registered physicians have registered with their real names, uploaded qualification materials, and passed the review.
During the year, Qagger Health's revenue was HK$399 million (2022: HK$824 million), down 52% from the same period last year. The main reason was due to adjustments in the health consumption business and the decline in the share of low-margin businesses and concentrated resources to expand high-margin and high-potential businesses. As a result, gross margin increased sharply from 2.0% in 2022 to 7.1% this year, and gross profit also increased sharply by 75% to HK$28.529 million.
Medical Intelligence and Katke Health both reduced their losses by about half during the year. Coupled with the “Entertainment and Media” division turning losses into profits during the year, the Group's annual losses narrowed sharply to HK$125 million, a year-on-year decrease of more than 60%.
In addition to continuing to expand its core business, the Group is also actively expanding financing channels, laying an important foundation for future development. In March 2024, the Group signed a HK$120 million convertible bond subscription agreement with “Hongyi Investment”. Proceeds from the capital increase will be used as the Group's working capital to support the development of its core business. “Hongyi Investment” is a leading domestic investment management group with a total management capital of over RMB 120 billion. Its investments cover digital technology, cultural technology, and consumer services.