The net profit fell slightly in the first half of the year, and the guidance for the whole year remained unchanged. In the first half of 2020, the company achieved an income of 4024.2 million yuan, an increase of 25.9 percent over the same period last year, mainly due to the addition of five medical institutions in the business of the Hospital Group, and the net profit of home ownership fell 2.3 percent to 793.4 million yuan. Earnings per share were 0.46 yuan, down 2.3% from the same period last year. Although it was affected by the epidemic in the first half of the year, it has recovered somewhat, and management said it would keep its guidance on net profit growth of 10% for the whole year unchanged.
The business of the hospital group was affected by the epidemic, but gradually recovered in 2Q. Affected by the prevention and control of the epidemic in the first half of the year, the number of outpatients in the group's medical institutions decreased by 15% compared with the same period last year, the number of hospitalizations decreased by 18%, and the medical income of 29 medical institutions in the table decreased by 6% compared with the same period last year. Due to the consolidation, the company's comprehensive medical services revenue increased by 120%, and supply chain business revenue increased by 156% compared with the same period last year. As a result, the business income of the hospital group increased by 113%, and the net profit increased by 56%. The hospital business has gradually recovered in 2Q20, and the monthly income in May has basically returned to the level of the same period last year. At present, the company has listed 29 medical institutions with 8405 beds open. In the future, the company will continue to list the contracted hospitals with the goal of operating 30, 000 beds by 2025.
The scale of leased assets continues to grow. Revenue from the financial and consulting business rose 0.4 per cent year-on-year to 2480.5 million yuan. Of this total, revenue from financial leasing business rose 8.3% to 2049.7 million yuan, while income from the medical industry fell 4.2%, accounting for 68.2%.
The net interest margin and net interest margin were 3.55% and 4.13% respectively, higher than the industry average and up 0.14 and 0.10 percentage points respectively from the same period last year. As of the end of June, the size of leased assets reached 50.9 billion yuan, an increase of 2.2 per cent over the beginning of the year. Affected by the epidemic, the rate of non-performing assets and the 30-day overdue rate increased slightly, to 0.98% and 0.92%, respectively.
The consulting services business decreased by 22.7% to 430.3 million yuan, mainly related to the impact of the epidemic on newly signed customers and enforcement.
Promote the development of Internet hospitals. At present, four hospitals have been granted Internet hospital licenses, including Xidian Hospital, General Global Xi'an Western Airlines Hospital, Xianyang Caihong Hospital and Yantai Seaport Hospital. The company's self-built Internet platform has 13 online member medical institutions, with an offline online conversion rate of 5.1% within 4 months, more than 30% of online patients have hospital needs, and patient satisfaction has reached 99%. In the future, the company will continue to upgrade the Internet platform to enable physical medical institutions within and outside the system.
Risk tips: hospital business progress is not as expected; interest rate, exchange rate, credit risk and other market risks.