Neusoft Group Reports 2016 Net Profit of RMB 1.85 Billion, a 379.09% Year-on-Year Increase

VCBeat News reported that on March 31, Neusoft Group released its 2016 annual report. During the reporting period, the company achieved operating revenue of RMB 7,734.85 million, a year-on-year decrease of 0.22%;Company's Operating Revenue Year-over-Yearan increase of 12.16%; the Company achieved a net profit (net profit attributable to shareholders of the listed company) of RMB 1,850,980,000, representing a year-on-year increase of 379.08%;Net profit after deducting non-recurring gains and losses amounted to RMB 226.06 million, representing a year-on-year increase of 2.20%.

Neusoft Corporation’s Key Accounting DataData Source: “Neusoft Corporation 2016 Annual Report”

Neusoft Corporation’s Main Business Overview Data Source: “Neusoft Corporation 2016 Annual Report”

In 2016, the company implemented an aggressive market competition strategy, strengthened market coverage, and further consolidated and enhanced its position in healthcare and socialmarket leadership in areas such as social security, intelligent connected vehicles, and smart cities, along with core industry solutions and R&D and engineering servicesThe business continues to grow steadily.

In the fields of regional health and hospital informatization, the company’s core business continues to maintain rapid growth. According to IDC’s industry analysis report,The company has maintained the No. 1 market share for six consecutive years, continuing to lead the industry.

As of the end of the reporting period,Cumulative Services Provided by the Company2,000 Hospital ClientsYu Family, covering more than 400 tertiary hospitals across China and serving 460 million patient visits nationwide. Regional health services span the national, provincial, and municipal levels,County-level four-tier platform, serving over 23,000 primary healthcare institutions and covering a population of 390 million.

In the field of regional health, during the reporting period,The company has signed contracts with key clients, including the Health and Family Planning Commissions of Yan’an City, Liaoyang City, and Hangzhou City. In the area of tiered diagnosis and treatment services, Yichang’s tiered diagnosis and treatmentThe Service Collaboration Platform was successfully selected as one of the Top 100 Best Practice Cases for China’s “Internet Plus” Action, and concurrently launched the “Xingguo All-in-One Machine” product, providing branchlaying the foundation for the further implementation of tiered diagnosis and treatment. In the field of hospital informatization, Neusoft has successfully expanded its reach to Sichuan Provincial People's Hospital and Nanjing Children'shospitals, Liaoning Provincial People's Hospital, and other medical institutions.

Meanwhile, significant achievements have been made in new product research and development innovation, with the company targeting large tertiary Grade-A hospitals.First launched the industry-leading next-generation hospital core business platform, Realone Suite, at Macau Kiang Wu Hospital and The First Affiliated Hospital of Sun Yat-sen UniversitySuccessfully implemented at multiple medical institutions, including cancer hospitals. Targeting clinical operations, the company has successively launched Neusoft E-Care Critical Care Information Management Systemsystems, hemodialysis systems, and other clinically advanced products.

Medical Big Data, Daxiang Jiuyi, and RealOneConnect: Driving Innovation in Healthcare ServicesAs the customer base for internet-based products continues to expand and innovative business models achieve rapid growth, the integration with traditional businesses has pioneered industry-leading solutions.Leading Online and Offline "One-Stop" Solution.

In the fields of hospital operations and medical ecosystem value chain management, the subsidiary Neusoft Wanghai maintains its position in Hospital Resource Planning (HRP) and integrated hospital cost management,a leading position in service areas such as the supervision of medical and healthcare resources.

During the reporting period, the company explored supply solutions tailored for large hospitals and regional healthcare systems.Supply chain integration has yielded results; the launched supply chain platform enables hospital suppliers to complete supply matching online, thereby promoting effective hospital operations.Reduce consumables inventory and improve operational efficiency; the solution has been officially launched at West China Hospital. Meanwhile, the company has achieved rapid progress in intelligent DRGs.rapid development and obtained authorization for CN-DRGs.

In the field of medical insurance management, the company continues to consolidate its position as a market leader,Signed strategic health city agreements with more than 20 citiesCooperation Agreement, continuously advancing the development of Healthy Cities. Neusoft’s “Internet + Medical Insurance” public benefit service platform has been implemented in multiple provinces and municipalities, with terminals...—Use the Neusoft Mobile Pharmacy “Medical Insurance Medicine Box APP”As the first solution in China for online drug purchases using social security cards was successfully launched,Connecting 6 cities。

During the reporting period, the Company partnered with the Shenyang Municipal Healthcare Security Administration to pioneer the creation of an integrated platform for healthcare insurance appointment registration, medical services, and healthcare insuranceThe “Shenyang Smart Medical Insurance” APP, featuring multiple functions such as coordinated settlement and online medication purchases, has officially entered its trial operation phase.The company undertakes the medical insurance cost containment project in Liaoyang City.fee items, exploring a new business model driven by multi-party collaboration among the government, commercial insurance providers, and IT enterprises.

During the reporting period, the Company’s all-in-one kiosk business for hospital self-service experienced rapid growth. In the bank-hospital collaboration sector, the Ubione series of smartNeng Equipment has partnered with multiple banks, including Bank of China and China Construction Bank, to undertake projects for Shengjing Hospital of China Medical University and Hunan Provincial People's Hospital, Tianjin People’s Hospital, Zhongnan Hospital of Wuhan University, the First Affiliated Hospital of Xi’an Jiaotong University, and more than 300 other hospitals; in Hannan, Jiangmen,Ten regions, including Hubei, Guangxi, Shaanxi, Kunshan, Hunan, Zhanjiang, Jimo, and Langfang, have been shortlisted as a whole, fully unlocking growth potential.

The sales regions for smart payment devices cover Hebei, Chongqing, Shanxi, Tianjin, Henan, Guangxi, Yunnan, Guangdong, and other areas, and have successfully expandedExpand the settlement services in consultation rooms.

In the human resources and social security sector, the company's business covers the nationMinistry of Human Resources and Social Security, 19 provincial departments, 174 municipal bureaus, market share exceeding50%, covering a population of over 500 million, with more than 7 million participating entities and over 120,000 designated medical institutions and pharmacies。

During the reporting period, the CompanyContinue to consolidate our leadership position, undertake the Guangxi human resources and talent project as well as the Golden Insurance projects in Guangdong, Qinghai, Nanjing, Xuzhou, and other regions, and serve as a designated social security provider.Proprietary products, such as all-in-one devices for product and social security services, have achieved large-scale breakthroughs in Nanchang, Xuzhou, Taizhou, and other regions; the “Palm 12333” service has

Currently, it is being promoted and applied in 12 provinces and 72 regional cities across China.

In the medical equipment business, its subsidiary Neusoft Medical has continued to increase R&D investment and established two distributed R&D centers in Beijing and Shanghai.R&D Center, launching new products such as the CTNeuVize 16 Essence, PET/CT, mobile DR, and the HD5/N7/N9 series of ultrasound systems.

Meanwhile,Strengthen the development of domestic and international sales channels, establish branches in Africa, Europe, South America, and other regions, and accelerate the overall enhancement of technology, sales, andBrand Competitiveness.

In the healthcare services sector, its subsidiary Xikang has continued to increase investment in its cloud platform, making every effort to advance the expansion and development of its cloud hospital business.and operations, with 17 offline physical medical institutions currently operating in more than ten core cities across China; the online business of the cloud hospital in Ningbo,Launched and commenced operations in multiple cities, including Shenyang and Taiyuan; expanded the all-in-one primary healthcare service device project to five provinces, promoting long-term sustainable business growth.sustainable development.