Successfully Implemented Business Expansion and Reorganisation Amid Economic Adversity

FY2022 Annual Results Highlights:

• Total revenue was HK$665.9 million, up by 8.0% YoY
• Profit attributable to shareholders was HK$72.2 million, up by 107.2% YoY
• Net profit margin was 11% versus 5% in the previous year
• Basic earnings per share were HK9.34 cents, up by 103.9%YoY
• The Board proposed a final dividend of HK3.00 cents per share, representing a HK4.50 cents annualised dividend, up by 18.4% over the prior year, payout ratio of about 49.4%
• Strong financial position with a cash balance of over HK$235 million and zero gearing
• Shareholders’ fund increased by about 9.3%, to about HK$700 million
• Patient visits recorded were over 1.1 million during the year

UMP Healthcare Holdings Limited ("UMP" or the "Group", Stock Code: 722.HK) announced today its audited consolidated annual results for the financial year ended 30 June 2022 (the "FY2022"). The Group continued its growth trajectory in FY2022 despite a challenging environment.

Satisfactory results with cost discipline maintained

During FY2022, the Group achieved satisfactory results, with total revenue from the continuing operations grew 8.0% to approximately HK$665.9 million year-on-year. Profit attributable to shareholders was HK$72.2 million, representing a significant year-on-year increase of 107.2% and a net profit margin of 11% (FY2021: 5%). Basic earnings per share were HK9.34 cents (FY2021: HK4.58 cents). The Board proposed paying a final dividend of HK3.00 cents per share for FY2022 (FY2021: HK2.80 cents). Together with the interim dividend paid of HK1.50 cents per share, the total amount of interim and final dividends for FY2022 is HK4.50 cents per share (FY2021: HK3.80 cents), an increase of 18.4% over the prior year and representing an annual dividend payout ratio of about 49.4%.

UMP's major business scope consists of 1. Corporate healthcare solution services in Hong Kong & Macau; 2. Clinical healthcare services in Hong Kong & Macau (including medical, medical imaging and laboratory services, and dental); and 3. Clinical healthcare services in Mainland China. During FY2022, the Group's revenues from all these three business segments (after inter-segment elimination) were HK$235.2 million, HK$393.1 million, and HK$37.6 million respectively, representing a year-on-year increase of 1.8%, 12.8%, and 1.9% respectively. The Group retains a strong financial position with a sizeable cash balance of over HK$235 million and zero gearing. Shareholders' funds increased by 9.3% to about HK$700 million.

As of 30 June 2022, UMP's medical network maintained over 1,000 points of service across Hong Kong and Macau to serve its corporate and individual customers and cared for over 1.1 million patient visits during FY2022.

Strong growth in the medical imaging and laboratory services segment

Revenue for medical imaging and laboratory services has significantly jumped by 30.4% from approximately HK$113.0 million in FY2021 to approximately HK$147.3 million in FY2022 (before inter-segment elimination) and its operating profit has reported a slight increase of 2.9% from approximately HK$21.6 million in FY2021 to approximately HK$22.3 million in FY2022. The increase in revenue and operating profit were mainly attributable to the increasing demand for body health checks and imaging and laboratory services and the vamp up of certain integrated imaging service centres during the financial year ended 30 June 2022.

Due to the increasing health awareness and high demand for healthcare services by an ageing population in Hong Kong, the Group successfully expanded its advanced medical imaging and laboratory services through several acquisitions in 2022 in order to capture enormous expansion potential in such fields. The acquisitions will consolidate and uplift the service capability and quality of service in the diagnostic imaging and laboratory business and strengthen the Group's customer base, creating a synergistic contribution to the overall healthcare business.

Latest Business Developments

In May and June 2022, the Group purchased advanced imaging equipment and medical facilities at a consideration of about HK$33.0 million and entered a new lease in One Chinachem Central over a term of 4 years at an accounting right-of-use asset value of about HK$57.8 million, with an aggregate total investment value of about HK$90.8 million. The Group now runs a one-stop advanced imaging and premium multi-service medical centre in Central, Hong Kong, with day surgical, physiotherapy and oncology medical facilities.

In August and September 2022, the Group announced to further expand its medical imaging services with digital Positron Emission Tomography (PET)/Computer Tomography (CT) scans and other imaging facilities with two new centres opening in early 2023, at Bank of America Tower in Admiralty and 26 Nathan Road in Tsim Sha Tsui respectively. The Group is optimistic about the craving demand for private imaging and laboratory services, and expects that it will act as one of the driving forces for the businesses and a significant contributor to the Group's performance in future.

Reposition the business development in Greater Bay Area

In December 2021, the Group repositioned its presence in Mainland China and reorganised the professional training and public-private-partnership business in Greater Bay Area by selling a certain controlling stake of its Mainland business to Chow Tai Fook Enterprise (a substantial shareholder of the Company). The reposition enables the Group to focus on strengthening its core healthcare business in Hong Kong and Macau, and carry out cross-border medical services. UMP continues the clinical and Immigration Medical Exam service operations in Beijing and Shanghai, and retains a significant strategic presence to continue to explore future expansion opportunities in the Mainland.

Dr. SUN Yiu Kwong, Chairman, Executive Director and Chief Executive Officer of UMP, addressed, "Despite the volatilities, there were ample opportunities that we seized during the year under review. We remained resolute in delivering top-notched services and continued to broaden our service scope and deepen certain segments of our acclaimed businesses. It was attributable to the Group's reformulation of business strategies through successful acquisition of high-quality projects in economic adversity.

"We have established a solid strategic relationship with many medical groups, insurance companies and hospitals to achieve synergy, network expansion and systematic and thorough service referrals. Through M&A and collaboration with other highly regarded market practitioners and partnership groups, we will continue to explore growth opportunities for years to come."

Dr. SUN concluded, "UMP aims to broaden our market shares in both the B2B and B2C business segments and continue to provide top-notch services to our long-term users, who have trusted and chosen our medical team as their designated service providers. Armed with the belief that value-based healthcare will be the future trend of the medical industry, particularly for a society with an ageing population, we aim to service our community by providing incremental social value while benefiting our stakeholders as a whole."