Financial Performance - In 2021, the overall revenue of the group’s established maternity centers (operating for over one year) reached HKD 590.18 million, a year-on-year increase of 2.0%[11] - The net profit for the maternity service business in 2020 was HKD 108.49 million, with a year-on-year growth of 3.4%[11] - The revenue from the maternity service business increased by 9.3% year-on-year to HKD 631.98 million, while net profit decreased by 31.0% to HKD 74.85 million due to initial losses from newly opened centers[23] - The group's total revenue for the year was HKD 642.57 million, representing a year-on-year increase of 6.9% from HKD 601.21 million, driven by improved occupancy rates and contributions from newly opened centers[44] - The gross profit for the year was HKD 205.41 million, a decrease of 16.5% from HKD 246.13 million, with a gross margin of 32.0%, down from 40.9% the previous year, mainly due to initial losses from newly opened centers[44] - The group achieved a profit attributable to owners of approximately HKD 5,300,000, recovering from a loss of HKD 381,352,000 in the previous year[50] Expansion and Growth - The group opened 4 new maternity centers in 2021, increasing the total number of maternity rooms from 435 to 688, representing a growth of 58.2%[14] - The new maternity centers (operating for less than one year) achieved expected signing and revenue levels in the current year[14] - The company aims to maintain a high growth rate in the number of rooms despite increasing challenges as the base expands[14] - Four new maternity centers opened this year contributed to a 10.2% increase in advance payments and a 7.2% increase in revenue, indicating a rapid growth in both bookings and income[15] - The first new center in Shenzhen achieved profitability within six months of operation, demonstrating the replicability and strong profit certainty of the ultra-light asset model[15] - The company plans to continue expanding its ultra-light asset model centers to enhance net asset return rates[15] Cost Management and Profitability - Administrative expenses decreased from HKD 32.99 million to HKD 25.66 million, indicating improved cost management[24] - Sales and distribution expenses increased by 21.4% to approximately HKD 107.48 million, attributed to additional costs from newly established maternity service centers[46] - The company emphasizes a stable service level and profitability as a long-term capability, validated over fifteen years[12] - The average scale of the maternity centers under the brand is 76 rooms, which helps maintain service stability and profitability[18] Strategic Partnerships and Training - The company has established strategic partnerships with five nursing schools to ensure a steady supply of qualified graduates to meet the staffing needs of new centers[20] - The company has established a quality training center to enhance service standards and employee training efficiency, ensuring high-quality customer service[13] - The group has conducted regular customer demand research to identify new needs and improve service quality[13] Corporate Governance - The company maintains a high level of corporate governance to ensure transparency and protect shareholder interests[177] - The board consists of four executive directors, two non-executive directors, and three independent non-executive directors, with independent directors making up one-third of the board[178] - The audit committee consists entirely of independent non-executive directors, ensuring diverse industry experience[199] - The company has established committees for remuneration, nomination, and audit, ensuring thorough oversight and accountability[168][169] Shareholder and Financial Management - The company raised approximately HKD 113,800,000 from the placement of 190,000,000 new shares at a price of HKD 0.62 per share, which is an 18.42% discount to the market price at the time[72] - The proceeds from the placement are intended to repay outstanding debts (approximately HKD 79.7 million) and for general working capital (approximately HKD 34.1 million)[72] - The company completed the sale of its subsidiary, Jintai Venture Capital Limited, for HKD 70,000,000, resulting in a gain of approximately HKD 13,602,000[67] - The company has successfully repaid a loan of up to HKD 200,000,000 with a 12% annual interest rate, which was fully repaid during the year, indicating effective financial management[140] Employee and Workforce Management - The company has approximately 1,582 employees as of December 31, 2021, an increase from 1,446 employees in 2020, indicating a growth in workforce[143] - Total employee costs (excluding director remuneration) for the year are approximately HKD 208,446,000, up from HKD 191,828,000 in 2020, reflecting a year-over-year increase of about 8.4%[143] - The company has maintained good relationships with employees, with no significant recruitment difficulties or employee turnover issues reported[155] Market Position and Brand Recognition - The brand ranked first in the 2021 China Maternity Center Brand Ranking with a score of 90.98, significantly higher than its competitors[18] - The company aims to expand its "Aidi Palace" brand maternity center services, enhancing its market presence and service coverage[138] Financial Position and Assets - The total net assets of the group increased to approximately HKD 1,249,743,000, up by HKD 255,609,000 from HKD 994,134,000 in the previous year[54] - The group reported a current ratio of 2.03, improving from 1.52 in the previous year[56] - The group had cash and bank balances of approximately HKD 87,627,000, an increase from HKD 81,530,000 in the previous year[61]

Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 324,058,000, a slight decrease of 0.09% compared to HKD 324,342,000 in the same period of 2020[9] - Gross profit for the same period was HKD 128,235,000, down from HKD 139,110,000, representing a decrease of 7.8%[9] - Operating profit decreased to HKD 44,381,000 from HKD 68,971,000, a decline of 35.8%[9] - Net profit for the period was HKD 27,061,000, an increase of 5.1% compared to HKD 25,668,000 in 2020[9] - Total comprehensive income for the period was HKD 44,080,000, significantly up from HKD 10,565,000 in the previous year, marking an increase of 317.5%[9] - The basic and diluted earnings per share for the period were HKD 0.61, down from HKD 0.68 in the previous year[12] - The company reported a significant foreign exchange gain of HKD 17,104,000 compared to a loss of HKD 15,103,000 in the same period last year[9] - The company reported a total comprehensive income of HKD 44,080 thousand for the six months ended June 30, 2021, compared to HKD 27,061 thousand for the same period in 2020, an increase of 63%[20] - The company reported a net profit of HKD 27,061 thousand for the six months ended June 30, 2021, compared to HKD 25,668 thousand in the same period of 2020, reflecting an increase of approximately 5.4%[44] Assets and Liabilities - Non-current assets decreased to HKD 1,689,243,000 from HKD 1,898,259,000, a decline of 11.0%[14] - Current liabilities decreased to HKD 422,907,000 from HKD 637,377,000, a reduction of 33.6%[14] - The company's equity attributable to owners increased to HKD 1,105,902 thousand as of June 30, 2021, compared to HKD 772,768 thousand as of December 31, 2020, representing a growth of 43%[17] - The total equity increased to HKD 1,282,306 thousand as of June 30, 2021, from HKD 994,134 thousand as of December 31, 2020, reflecting a rise of 29%[17] - Total assets as of June 30, 2021, amounted to HKD 2,877,501 thousand, with total liabilities of HKD 1,595,195 thousand, resulting in a net asset position[47] - The total amount of trade receivables, net of expected credit loss provisions, was HKD 3,510,000 as of June 30, 2021, compared to HKD 10,290,000 as of December 31, 2020, reflecting a decrease of approximately 66%[84] - The company reported a decrease in trade payables to HKD 29,520,000 from HKD 11,581,000, which is a significant increase of approximately 155%[93] - The company's prepaid expenses decreased to HKD 261,778,000 from HKD 281,349,000, a decline of approximately 7%[81] Cash Flow and Financing - The company's cash and cash equivalents increased to HKD 126,990,000 from HKD 81,530,000, reflecting a growth of 55.7%[14] - The net cash used in operating activities for the six months ended June 30, 2021, was HKD (91,553) thousand, compared to HKD (185,885) thousand for the same period in 2020, indicating an improvement of 51%[23] - The cash and cash equivalents at the end of the period increased to HKD 126,990 thousand as of June 30, 2021, from HKD 77,351 thousand as of June 30, 2020, marking a growth of 64%[23] - The net cash from financing activities for the six months ended June 30, 2021, was HKD 288,646 thousand, compared to HKD 183,533 thousand for the same period in 2020, an increase of 57%[23] - The total borrowings as of June 30, 2021, were HKD 774,350,000, an increase of 2.3% from HKD 756,604,000 as of December 31, 2020[97] - The bank borrowings with collateral increased to HKD 740,725,000 as of June 30, 2021, compared to HKD 695,748,000 as of December 31, 2020, reflecting a growth of 6.5%[97] - The company plans to utilize the net proceeds from bond issuance for general funding purposes, indicating a strategy to strengthen financial flexibility[105] Revenue Streams - The revenue from maternity services was HKD 314,856 thousand, compared to HKD 313,395 thousand in the previous year, showing a growth of about 0.5%[37] - The medical anti-aging services generated revenue of HKD 5,348 thousand, down from HKD 6,561 thousand, indicating a decline of approximately 18.5%[37] - Revenue from China was HKD 314,856,000, a slight decrease of 1.4% from HKD 317,287,000 in the previous year[62] - Revenue from Hong Kong increased by 30.5% to HKD 9,202,000 from HKD 7,055,000 year-on-year[62] - The revenue from the postpartum service business increased by 2.67% to approximately HKD 314,856,000 compared to the six months ended June 30, 2020[111] Strategic Initiatives - The company plans to continue expanding its market presence and investing in new product development to drive future growth[21] - The implementation of the three-child policy in China is expected to positively impact the birth rate and subsequently expand the market for maternity services[108] - The group plans to open new "Aidi Palace" confinement centers using a light-asset model, with the first center in Shenzhen opening in April 2021, significantly reducing the opening time and capital investment[135][136] - The group plans to accelerate market expansion through partnerships with brand chain apartments or real estate developers to meet national consumer demand[138] Shareholder Information - The major shareholder, Wang Ai Er, holds 1,328,684,050 shares, representing 31.00% of the issued share capital[180] - Champion Dynasty holds 930,379,671 shares, accounting for 21.71% of the issued share capital[180] - Zhu Nv Shi owns 449,151,755 shares, which is 10.48% of the issued share capital[180] - Suntek Global Growth Fund SPC holds 398,304,379 shares, representing 9.90% of the issued share capital[181] Governance and Compliance - The company has adhered to the Corporate Governance Code throughout the reporting period, ensuring compliance with the principles and provisions[191] - The audit committee reviewed the unaudited interim results, ensuring the accounting principles and practices adopted by the group were appropriate[195] - The company maintains a prudent financial management policy with no foreign exchange contracts or listed investments[144]

（於百慕達註冊成立之有限公司） (股份代號: 286) 2020 年報 目錄 目錄 | --- | --- | |----------------------------|-------| | | | | 公司資料 | | | 聯席主席報告 | | | 行業及業務回顧 | | | 本年業績 | 12 | | 管理層討論與分析 | 14 | | 董事會報告 | 18 | | | 27 | | 董事及高級管理層簡介 | | | 企業管治報告 | 31 | | 環境、社會及管治報告 | 53 | | 獨立核數師報告 | 81 | | 綜合損益及其他全面收益報表 | 89 | | 綜合財務狀況報表 | 91 | | 綜合權益變動表 | 93 | | 綜合現金流量表 | 95 | | 綜合財務報表附註 | 97 | | 五年財務概要 | 211 | 1 公司資料 公司資料 | --- | --- | |-------------------------------------------------------------------------------|------------------------------ ...

Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 324,342,000, representing a 40.5% increase from HKD 230,841,000 in the same period of 2019[11] - Gross profit for the same period was HKD 139,110,000, compared to HKD 48,946,000 in 2019, indicating a significant improvement in profitability[11] - Operating profit increased to HKD 68,971,000 from HKD 22,184,000, reflecting a growth of 210.5% year-over-year[11] - Net profit for the period was HKD 25,668,000, up from HKD 2,128,000 in 2019, marking a substantial increase of 1,107.5%[11] - Basic and diluted earnings per share for the period were HKD 0.68, compared to HKD 0.02 in the previous year[16] - Total comprehensive income for the period was HKD 10,565,000, compared to HKD 3,185,000 in 2019, showing an increase of 232.5%[9] - The company reported a total comprehensive income of HKD 14,855,000 for the six months ended June 30, 2020, compared to HKD 10,565,000 in the previous year, marking an increase of approximately 40.5%[24] - The company reported a profit of HKD 25,990,000 for the six months ended June 30, 2020, a significant increase from HKD 523,000 in the same period of 2019[68] Assets and Liabilities - Non-current assets as of June 30, 2020, totaled HKD 2,160,332,000, down from HKD 2,259,123,000 at the end of 2019[18] - Current assets increased to HKD 898,336,000 from HKD 877,506,000, indicating a slight growth in liquidity[18] - Total liabilities decreased to HKD 675,545,000 from HKD 816,910,000, reflecting improved financial stability[18] - Total assets as of June 30, 2020, amounted to HKD 3,058,668,000, with liabilities totaling HKD 1,744,778,000, resulting in a net asset position[39] - The total liabilities as of June 30, 2020, amounted to HKD 2,383,123,000, up from HKD 2,319,719,000, indicating a rise of approximately 2.7%[20] - The company’s total equity increased to HKD 1,313,890,000 from HKD 1,306,807,000, representing a growth of approximately 0.5%[20] Cash Flow and Financing - The company's cash and cash equivalents decreased to HKD 77,351,000 from HKD 22,463,000 in the previous year, indicating a significant decline in liquidity[26] - The net cash used in operating activities for the six months ended June 30, 2020, was HKD (185,885,000), compared to HKD (7,443,000) in the same period of 2019, reflecting a deterioration in operational cash flow[26] - The company’s financing activities generated a net cash inflow of HKD 183,533,000, a substantial increase from HKD 20,862,000 in the prior year, highlighting improved financing conditions[26] - The company reported total borrowings of HKD 653,527,000, up from HKD 481,465,000, reflecting a 35.7% increase[91] - The company’s bank borrowings with collateral rose to HKD 587,784,000 from HKD 459,753,000, an increase of 27.8%[91] Revenue Sources and Segments - Revenue from maternity services was HKD 313,395,000, while the medical anti-aging services generated HKD 6,561,000, indicating a shift in revenue sources[37] - The operating segment for maternity services reported a profit of HKD 66,294,000, while the medical anti-aging segment incurred a loss of HKD 6,967,000, leading to an overall segment loss of HKD 7,001,000[37] - The medical anti-aging and health industry investment revenue dropped to approximately HKD 6.6 million, a decrease of about HKD 49.9 million compared to the previous year, largely due to the impact of the pandemic[116] Strategic Direction - The company plans to continue expanding its market presence and investing in new product development to drive future growth[10] - The company is focusing on expanding its maternity services and health industry investments in China, indicating a strategic direction for future growth[35] - The group plans to launch the Luofu Mountain wellness residential project in the second half of 2020, expected to generate significant profit and cash flow[127] Employee and Operational Costs - The total employee costs, including director remuneration, amounted to HKD 84,752,000, compared to HKD 9,104,000 in the previous year[65] - Financial costs for the period amounted to HKD 32,703,000, an increase of approximately HKD 17,572,000 or 116.1% compared to the previous year[124] - Administrative expenses decreased by 17.7% to approximately HKD 25.5 million, attributed to reduced commission and salary expenses in the medical anti-aging business due to the pandemic[120] Market Conditions - The overall industry is experiencing consolidation, with increasing competition leading to higher market concentration[103] - The maternity service business demonstrated resilient growth despite challenges from the COVID-19 pandemic, indicating its counter-cyclical capability[128] Corporate Governance - The company has fully applied the principles of the Corporate Governance Code during the period, except for a specific deviation regarding the separation of roles of the chairman and CEO[178] - The audit committee reviewed the group's accounting principles and practices for the interim period, which was not audited by the company's auditors[181]

Acquisition and Market Position - The company acquired 88.5184% of Shenzhen Aidi Gong Maternal and Infant Health Management Co., holding approximately 94.95% actual equity, rapidly becoming a leading player in the confinement service industry[12]. - The company completed the acquisition of 88.5184% of Shenzhen Aidigong for a total consideration of RMB 888,000,000, with the acquisition finalized on September 13, 2019[55]. - The company changed its English name to "Aidigong Maternal & Child Health Limited" to better reflect its business scope following the acquisition of additional interests in Shenzhen Aidigong[65]. Industry Growth and Strategy - The maternal and infant health service industry is experiencing rapid growth, with market penetration increasing at a double-digit rate, as more pregnant mothers choose confinement centers for health care[12]. - The next ten years are expected to be a golden decade for the confinement service industry, with the company adopting a "both organic and external" growth strategy[17]. - The company aims to focus on the high-end confinement service market and accelerate the national expansion of the "Aidi Gong" brand, particularly in first-tier and new first-tier cities[17]. - The company plans to launch a new brand targeting middle-income groups, expanding its coverage of both high-end and comfortable confinement services nationwide[13]. - The confinement service industry currently has a low concentration, presenting significant opportunities for industry consolidation through mergers and acquisitions[13]. Financial Performance - The group's revenue for the year reached HKD 610,612,000, an increase of HKD 233,577,000 or 61.95% compared to the previous year[35]. - The acquisition of the new maternity service division contributed HKD 232,828,000 to the group's revenue[35]. - The gross profit for the year was HKD 191,581,000, representing an increase of HKD 94,038,000 or 96.4% year-on-year[35]. - The gross profit margin improved to 31.4% from 25.9% in the previous year, primarily due to the high-margin maternity service revenue[35]. - The maternity service business generated a gross profit margin of 43.8% and a return on equity of 38.6%[27]. - The group's profit before tax increased by HKD 16,250,000 or 81.8%, from HKD 19,876,000 in 2018 to HKD 36,126,000 in 2019[36]. - Profit attributable to the company's owners was approximately HKD 11,237,000, an increase of HKD 9,077,000 or 420.2% compared to HKD 2,160,000 in 2018[37]. Assets and Liabilities - Total net assets of the group as of December 31, 2019, were approximately HKD 1,306,807,000, an increase of HKD 344,580,000 from HKD 962,227,000 in 2018[40]. - The current ratio for the year was 1.07, down from 1.35 in 2018[42]. - Cash and bank balances as of December 31, 2019, were approximately HKD 80,098,000, compared to HKD 8,016,000 in 2018[44]. - The outstanding loan balance to Champion Dynasty as of December 31, 2019, was HKD 45,443,000, up from HKD 28,574,000 in 2018[115]. Employee and Operational Insights - Total employee costs (excluding directors' remuneration) for the year amounted to approximately HKD 72,365,000, a significant increase from HKD 14,972,000 in 2018[51]. - The company has approximately 1,913 employees as of December 31, 2019, compared to about 200 employees in 2018[116]. - The company has not encountered any major difficulties in recruitment or significant employee turnover during the year[127]. Corporate Governance - The board of directors is committed to maintaining high levels of corporate governance to ensure transparency and protect shareholder interests[148]. - The independent non-executive directors bring over 25 years of experience in venture capital, corporate finance, and general management[139]. - The company emphasizes effective self-regulatory practices to maintain a robust internal control system[148]. - The audit committee is composed entirely of independent non-executive directors, ensuring diverse industry experience[176]. - The company has established compliance procedures to ensure adherence to applicable laws and regulations, with no significant violations reported during the year[87]. Risk Management - The company actively monitors industry trends, technological innovations, and changes in consumer behavior to manage operational risks[75]. - The company’s management regularly identifies and assesses key operational risks to take appropriate risk response measures[78]. - Financial risk management details, including foreign currency, interest rate, and credit risks, are outlined in the financial statements[81]. Shareholder Information - As of December 31, 2019, major shareholder Champion Dynasty holds 930,379,671 shares, representing 24.29% of the issued share capital[107]. - The company proposed a final dividend of HKD 0.067 per share for the current year, compared to no dividend in the previous year[72]. - The company has no beneficial interests in any of the top five customers or suppliers held by directors or significant shareholders[123]. Committees and Meetings - The audit committee held a total of two meetings during the year, with all members attending both sessions, resulting in a 100% attendance rate[180]. - The Nomination Committee held three meetings this year to review the qualifications of directors and assess the board's structure and composition[189]. - The company held a total of 19 board meetings this year, with management and the company secretary present to report on governance, risk management, compliance, accounting, finance, and business-related matters[159].

Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 230,841,000, a decrease of 1% compared to HKD 233,584,000 for the same period in 2018[7] - Gross profit for the same period was HKD 48,946,000, down 23.3% from HKD 63,864,000 in 2018[7] - Operating profit decreased to HKD 22,184,000, a decline of 28.4% from HKD 30,943,000 in the previous year[7] - The net profit for the period was HKD 2,128,000, a significant drop of 83.3% compared to HKD 12,734,000 in 2018[9] - Total comprehensive income for the period was HKD 3,185,000, down 54.7% from HKD 7,024,000 in the same period last year[9] - The company reported a basic and diluted earnings per share of HKD 0.02 for the period, down from HKD 0.24 in 2018[9] - The financial costs for the period were HKD 15,131,000, a reduction from HKD 20,620,000 in the previous year[7] - The company recorded a foreign exchange gain of HKD 1,057,000 during the period, compared to a loss of HKD 5,710,000 in 2018[7] - The company experienced a foreign exchange loss of HKD (6,088,000) during the period, impacting overall financial results[13] - Profit before tax for the period was approximately HKD 7,308,000, a decrease of about HKD 10,331,000 compared to the previous year[98] Assets and Liabilities - The company's total assets as of June 30, 2019, were HKD 1,004,491,000, a slight decrease from HKD 1,011,950,000 at the end of 2018[10] - The total equity attributable to the owners of the company was HKD 749,478,000, compared to HKD 750,497,000 at the end of 2018[10] - Total assets amounted to HKD 1,470,891 thousand, an increase from HKD 1,367,718 thousand, reflecting a growth of approximately 7.5%[55] - Total liabilities increased to HKD 517,192 thousand from HKD 405,491 thousand, representing a rise of about 27.5%[55] - The group had total borrowings of approximately HKD 101,486,000 as of June 30, 2019, compared to HKD 16,138,000 at the end of 2018[92] - The debt-to-equity ratio as of June 30, 2019, was 0.54, up from 0.42 at the end of 2018[103] Cash Flow - Net cash used in operating activities for the six months ended June 30, 2019, was HKD (7,443,000), an improvement from HKD (20,306,000) in 2018[16] - Cash and cash equivalents at the end of the period increased to HKD 22,463,000 from HKD 9,361,000 in the previous year, reflecting a significant improvement[15] - Net cash generated from financing activities was HKD 20,862,000 for the six months ended June 30, 2019, compared to HKD (26,398,000) in 2018, indicating a positive shift in financing[16] - The company reported a net cash inflow of HKD 13,869,000 for the six months ended June 30, 2019, a recovery from a net outflow of HKD (53,686,000) in the previous year[16] Segment Performance - The company reported two operating segments: Health Industry and Investment & Financing, each with distinct market strategies[49] - Revenue from the health industry for the six months ended June 30, 2019, was HKD 227,607,000, slightly up from HKD 227,502,000 in 2018[48] - The segment performance for the health industry reported a profit of HKD 12,185 thousand, compared to a profit of HKD 22,249 thousand in the previous period, indicating a decrease of about 45.4%[54] - Revenue from the medical anti-aging and wellness centers was approximately HKD 54,946,000, a decrease of about HKD 1,209,000 compared to HKD 56,155,000 in 2018[114] - The revenue from medical and health industry investment management was approximately HKD 1,509,000, a decrease of about HKD 11,607,000 compared to HKD 13,116,000 in 2018[116] - The revenue from the natural health food business increased from approximately HKD 158,231,000 in 2018 to about HKD 171,152,000 in 2019[117] - The investment and financing segment reported revenue of approximately HKD 3,234,000, a decrease of about HKD 2,848,000 compared to HKD 6,082,000 in 2018[118] Accounting and Reporting Standards - The company applied new and revised Hong Kong Financial Reporting Standards, which may impact financial performance and disclosures, but no significant effects were noted for the current and prior periods[20] - The implementation of HKFRS 16 "Leases" has led to changes in accounting policies, particularly in recognizing right-of-use assets and lease liabilities[21] - The company recognized lease liabilities of approximately HKD 17,625,000 and right-of-use assets of approximately HKD 18,463,000 as of January 1, 2019[37] - Adjustments made during the transition to HKFRS 16 included a reduction of HKD 2,155,000 in refundable lease deposits[44] - The company did not reassess existing contracts prior to the first application of HKFRS 16[36] - The company utilized a practical expedient for leases with a term of 12 months or less, not recognizing right-of-use assets and lease liabilities[36] Shareholder Information - Mr. Zhang holds 930,379,671 shares, representing 31.05% of the issued share capital[138] - Mr. Zheng owns 4,300,000 shares, accounting for 0.14% of the issued share capital[138] - The company did not recommend any interim dividend for the period, consistent with the previous year[75] - The company did not declare any interim dividends for the period[96] Future Outlook and Strategy - The company aims to focus on the health industry and expects to expand rapidly through acquisitions and restructuring[129] - The board remains optimistic about the healthcare industry and plans to adjust the development strategy based on industry changes[132] - The company believes that maternal and child health services are in rigid demand and the overall market will continue to grow rapidly due to policy changes and increasing disposable income in China[130] Miscellaneous - The company has no significant contingent liabilities as of June 30, 2019[112] - The company has established three anti-aging centers in Guangzhou, Shenzhen, and Luofu Mountain, with ongoing development for the Luofu Mountain center[114] - The company has a capital commitment of approximately RMB 20,000,000 (about HKD 22,768,000) related to the Luofu Mountain construction project[111] - The company has pledged land in Guangdong, China, for a loan of approximately RMB 75,000,000 (about HKD 85,348,000)[108] - The company is in discussions to extend the maturity of its bonds and will provide updates to shareholders as necessary[101] - The audit committee reviewed the unaudited condensed consolidated financial statements for the period[147] - There have been no changes to the directors' information since the last annual report[148] - The company has complied with the Corporate Governance Code throughout the period[144] - The company has a three-year revolving loan agreement with Champion Dynasty, with a maximum limit of HKD 200,000,000 at an annual interest rate of 12%[141] - The company has not repurchased, sold, or redeemed any of its listed securities during the period[145]

Financial Performance - The Group's revenue for the year ended December 31, 2018, showed a significant increase, reflecting the robust demand for life healthcare services[9]. - The Group's revenue for the year amounted to HK$377,035,000, representing a year-on-year decrease of HK$97,898,000 or 20.6%[24]. - Gross profit increased to HK$97,543,000, an increase of HK$14,162,000 or 17.0%, with a gross profit margin of 25.9%[25]. - Profit before income tax increased by HK$1,637,000 or 9.0%, from HK$18,239,000 in 2017 to HK$19,876,000 in 2018[26]. - Profit attributable to the owners of the Company was approximately HK$2,160,000, an increase of HK$738,000 or 51.9% compared to 2017[27]. - Revenue from the Medical Anti-aging and Health Preservation Base amounted to approximately HK$108,132,000, an increase of approximately HK$44,510,000 compared to 2017[36]. - Administrative expenses increased from HK$40,683,000 in 2017 to HK$64,005,000 in 2018[26]. - The share of results of associates increased from HK$8,822,000 in 2017 to HK$17,731,000 in 2018[26]. - Revenue from the medical and healthcare industry investment management decreased to approximately HK$6,843,000 in 2018 from HK$63,558,000 in 2017, representing a decline of approximately HK$56,715,000[42]. - Revenue from the natural health food segment dropped from approximately HK$323,856,000 in 2017 to approximately HK$249,795,000 in 2018, indicating a decrease of approximately HK$74,061,000[44]. - The investment and finance segment's revenue fell to approximately HK$12,265,000 in 2018 from HK$23,897,000 in 2017, a decrease of HK$11,632,000[49]. - Interest income from Champion Dynasty Limited decreased to approximately HK$7,819,000 in 2018 from HK$16,684,000 in 2017[50]. - Total net assets of the Group as of December 31, 2018, amounted to approximately HK$962,227,000, a decrease of HK$15,984,000 compared to 2017[51]. - Net asset value per issued ordinary share was HK$0.32 as of December 31, 2018, down from HK$0.33 in 2017[52]. - The current ratio improved to 1.35 in 2018 from 1.05 in 2017[53]. Strategic Developments - The acquisition of 88.5184% of Shenzhen Aidigong Maternity Health Management Co., Ltd. is expected to enhance the Group's market position in maternal and child healthcare, which is projected to grow rapidly due to increasing disposable income in China[12]. - The Group aims to establish itself as a leading international healthcare conglomerate, focusing on life healthcare and industrialization development[10]. - The Group has developed a comprehensive business structure in the medical anti-aging sector, including "Life Anti-aging" and "Medical Beauty Anti-aging" services[11]. - The overall strategy includes optimizing core businesses while maintaining significant stakes in them, with non-core segments managed for profit maximization[19]. - The Group anticipates a continuous increase in demand for life healthcare services, driven by economic growth and an expanding wealthy population in China[11]. - The Group's development strategy emphasizes global integration and the acquisition of top talent and technology to facilitate rapid expansion in the healthcare industry[10]. - The healthcare market is expected to grow rapidly, supported by the relaxation of birth control policies and increased healthcare expenditure in China[12]. - The Group is committed to adjusting its development strategy in response to industry changes to optimize its main business[19]. - The financial results of Aidigong will be consolidated into the Group's financial statements upon completion of the acquisition[12]. Operational and Compliance Risks - The Group's financial condition and results of operations are influenced by various risks, including economic conditions and healthcare market performance[111]. - The Group's operational risks include inadequate internal processes and external events, which are managed at divisional and departmental levels[112]. - The Group faces manpower and retention risks, aiming to attract and retain key personnel with competitive remuneration packages[113]. - Financial risks include foreign currency, interest rate, and credit risks, which are actively managed[115]. - The company has established compliance procedures to ensure adherence to applicable laws and regulations, with no material breaches reported during the year[132]. - The company is committed to regularly reviewing its compliance policies and practices[132]. Environmental Commitment - The Group is committed to environmental sustainability, promoting green measures and reducing energy consumption[125]. - The Group will review its environmental practices and consider implementing further eco-friendly measures[126]. Shareholder Information - As of December 31, 2018, the company's reserves available for distribution were HK$105,887,000, a slight decrease from HK$107,549,000 in 2017[140]. - Mr. Cheung holds 930,379,671 ordinary shares, representing 31.05% of the issued share capital, through his controlled corporation[161]. - Mr. Cheng owns 4,300,000 ordinary shares, which accounts for 0.14% of the issued share capital[161]. - Champion Dynasty holds 930,379,671 shares, representing 31.05% of the issued share capital of the company[169]. - Beauty Sunrise Investment Limited owns 300,000,000 shares, accounting for 10.01% of the issued share capital[169]. Employee and Staff Costs - Total staff costs excluding Directors' emolument for the year were approximately HK$14,972,000, an increase from HK$12,468,000 in 2017, reflecting a year-over-year growth of approximately 20.1%[75][78]. - As of December 31, 2018, the Group had around 200 employees, a decrease from approximately 270 employees in 2017[200]. Debt and Financing - The principal amount of secured convertible notes decreased to US$8,000,000 (approximately HK$62,400,000) in 2018 from US$10,000,000 (approximately HK$77,500,000) in 2017[59]. - Unsecured bonds decreased to HK$107,800,000 in 2018 from HK$121,600,000 in 2017[59]. - Secured guaranteed notes decreased to HK$80,000,000 in 2018 from HK$100,000,000 in 2017[59]. - The bank and cash balances as of December 31, 2018, were approximately HK$8,016,000, a decrease from HK$67,038,000 on December 31, 2017, due to partial repayments of secured convertible notes and guaranteed notes[69][72]. - The company redeemed HK$20,000,000 of the WT Note in December 2018, leaving HK$80,000,000 outstanding as of December 31, 2018[63][65]. - The Great Wall convertible bond had US$2,000,000 redeemed in December 2018, with US$8,000,000 outstanding as of December 31, 2018[64][66]. - The company is negotiating the terms for the extension of the WT Note and the Great Wall convertible bond[68][72]. - The company maintains no exposure to structured investment products, foreign exchange contracts, or investments in listed shares, bonds, and debentures[70][72]. - The entire issued share capital of CSHK Investment Fund Management was charged as security for the convertible notes issued by the company[71]. - The company had approximately HK$448,267,000 in total assets for its subsidiaries Harvest Luck and Great King as of December 31, 2018, down from HK$460,488,000 in 2017[71]. Acquisitions and Investments - The Group has established three Life Anti-aging Centres in China, with one currently under construction[33]. - The Group acquired a parcel of land in Luofu Mountain for the construction of a Health Preservation Base, targeting elite clientele[35]. - The acquisition of a medical beauty anti-aging group in August 2017 is expected to enhance the competitiveness of the Group's health services[34]. - There were no significant acquisitions or disposals of subsidiaries during the year[85][89]. Dividends and Share Options - The Board does not recommend any final dividend for the year, consistent with the previous year[108]. - No share options were granted under the 2012 Share Option Scheme for the year ended December 31, 2018, with no outstanding options as of that date[76][79]. - The Group has adopted a share award scheme to recognize contributions from employees and consultants, but no share awards were granted from August 30, 2018, to December 31, 2018[77][80].