Reply to the Audit Inquiry Letter Regarding the Application for Issuance of Shares to Specific Targets by Xi'an International Medical Investment Co., Ltd.
Reference No.: Zhong Shen Ya Tai Shen Zi (2026) No. 008702
To: Shenzhen Stock Exchange
On May 12, 2026, the Listing Review Center of the Shenzhen Stock Exchange issued the "Audit Inquiry Letter Regarding the Application for Issuance of Shares to Specific Targets by Xi'an International Medical Investment Co., Ltd." (hereinafter referred to as the "Inquiry Letter"). We have prudently reviewed the financial matters requiring explanation in the Inquiry Letter and report as follows:
Unless otherwise specified, the monetary units in this explanation are in RMB ten thousand yuan. Differences between the sum of individual items and the total are due to rounding. The financial data for January-March 2026 contained in this reply is unaudited.
Question 1: During the reporting period, the issuer's main business income was primarily derived from the medical industry, with the main operating entities being Xi'an Gaoxin Hospital (hereinafter referred to as "Gaoxin Hospital") and Xi'an International Medical Center Hospital (hereinafter referred to as "International Medical Center"). From 2022 to the first nine months of 2025, the issuer's main business income showed a growth trend, reaching 266,248.68, 450,602.48, 474,116.17, and 290,706.93 ten thousand yuan, respectively. The lower income in 2022 was mainly due to the hospital's operations being affected by suspension and rectification that year. From 2022 to the first nine months of 2025, the issuer continued to incur losses, with net profits after deducting non-recurring gains and losses attributable to the parent company being -112,273.75, -49,900.22, -28,692.81, and -31,161.27 ten thousand yuan, respectively, mainly due to the International Medical Center's large initial investment scale, insufficient bed occupancy rates during the reporting period, and the impact of medical insurance cost control policies. From 2022 to the first nine months of 2025, the issuer's gross profit margins were -6.57%, 9.55%, 9.45%, and 6.59%, respectively, which were higher than the average gross profit margin of medical businesses of comparable companies in the same industry. From 2022 to the first nine months of 2025, the net cash flows generated from the company's operating activities were 46,133.87, 108,733.44, 100,911.98, and 92,100.39 ten thousand yuan, respectively.
According to the application materials, from the end of 2022 to the end of September 2025, the issuer's current ratios were 0.67, 0.46, 0.39, and 0.27, and the quick ratios were 0.66, 0.44, 0.37, and 0.25, respectively, all lower than the average levels of comparable companies in the same industry; the asset-liability ratios were 67.95%, 66.29%, 67.36%, and 68.80%, respectively, higher than the average levels of comparable companies in the same industry.
As of September 30, 2025, the book value of the issuer's fixed assets was 683,810.25 ten thousand yuan, mainly including houses and buildings, special equipment, and general equipment. At the end of each period of the reporting period, the book value of the issuer's construction in progress (including engineering materials) was 245,285.72, 20,906.94, 32,848.78, and 34,431.75 ten thousand yuan, respectively. According to the application materials, more than 50% of the beds in the North Campus of the International Medical Center are still vacant as of now.
As of September 30, 2025, the book value of the issuer's other receivables was 4,928.94 ten thousand yuan, including current accounts and asset disposal payments. The book value of other non-current assets was 39,306.58 ten thousand yuan, including prepaid equipment payments and engineering payments of 37,039.61 ten thousand yuan. The issuer's subsidiaries include Junping Insurance Brokerage Co., Ltd.