External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Yunkang Group reported 2023 revenue of RMB891.5mn, down by 76.3% YoY, primarily due to the sharp decline of diagnostic testing demand for COVID-19 in China.</li><li>The blended gross margin improved to 36.5% in 2023 (+1.7 ppts), mainly due to enhanced operation efficiency and effective cost control.</li><li>The selling expense rate increased to 16.9% (+8.6 ppts) since the proportion of nonCOVID business increased substantially which required more marketing activities than COVID business. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</li></ul>

Yunkang Group reported 2023 revenue of RMB891.5mn, down by 76.3% YoY, primarily due to the sharp decline of diagnostic testing demand for COVID-19 in China.The blended gross margin improved to 36.5% in 2023 (+1.7 ppts), mainly due to enhanced operation efficiency and effective cost control.The selling expense rate increased to 16.9% (+8.6 ppts) since the proportion of nonCOVID business increased substantially which required more marketing activities than COVID business. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Yunkang Group (2325 HK) – Back to Normal Growth

<ul><li>Yunkang Group reported 1H23 revenue of RMB476.9mn, down by 65.4% YoY, primarily due to the sharp decline of diagnostic testing demand for COVID-19 after China’s reopening.</li><li>The blended gross margin dropped to 38.1% in 1H23 (vs. 47.2% in 1H22), mainly due to the significant decrease in demand for COVID-19 tests.</li><li>Moreover, the selling expense rate increased to 18.2% (+2.3 ppts). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Yunkang Group reported 1H23 revenue of RMB476.9mn, down by 65.4% YoY, primarily due to the sharp decline of diagnostic testing demand for COVID-19 after China’s reopening.The blended gross margin dropped to 38.1% in 1H23 (vs. 47.2% in 1H22), mainly due to the significant decrease in demand for COVID-19 tests.Moreover, the selling expense rate increased to 18.2% (+2.3 ppts). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Yunkang Group (2325 HK) – Healthy Growth in Non-COVID Business

<ul><li>Core business of diagnostic testing services for medical institution alliances maintained rapid growth.</li><li>The unaudited revenue from diagnostic testing services for medical institution alliances increased 143.6% YoY to RMB1,043.4mn primarily driven by the increased number of on-site diagnostic centers and the rise of average revenue of unit on-site diagnostic centers thanks to the expanded service capacities and coverage.</li><li>In 9M22, Yunkang has established 110 new on-site diagnostic centers and now operated 385 centers in total.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Core business of diagnostic testing services for medical institution alliances maintained rapid growth.The unaudited revenue from diagnostic testing services for medical institution alliances increased 143.6% YoY to RMB1,043.4mn primarily driven by the increased number of on-site diagnostic centers and the rise of average revenue of unit on-site diagnostic centers thanks to the expanded service capacities and coverage.In 9M22, Yunkang has established 110 new on-site diagnostic centers and now operated 385 centers in total.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Yunkang Group (2325 HK) – Continued Solid Revenue Growth in 9M22

China

Yunkang Group Limited operates as a medical operation service provider. The Company provides diagnostic outsourcing services, diagnostic testing, and other services. Yunkang Group provides its services throughout China.

Yunkang Group (2325 HK)