Financial Performance - For the six months ended June 30, 2023, the company's revenue was HKD 307.23 million, a decrease of 6.0% compared to HKD 328.79 million in the same period of 2022[7]. - The gross profit for the same period increased significantly to HKD 93.18 million, representing a 74.5% increase from HKD 55.19 million in 2022, resulting in a gross margin of 30.3%[7]. - The adjusted EBITDA for the period was HKD 30.77 million, a substantial improvement from a loss of HKD 5.18 million in the previous year[7]. - The net loss for the period was HKD 22.93 million, a significant reduction from HKD 61.97 million in the same period last year, indicating a recovery in the business[27]. - The group reported a total comprehensive loss of HKD 63,366,000 for the six months ended June 30, 2023, compared to a loss of HKD 88,992,000 for the same period in 2022[93]. - The company reported a total loss for the period of HKD 22,925,000, an improvement from a loss of HKD 61,965,000 in the previous year[127]. - The basic and diluted loss per share for the period was HKD 0.0054, an improvement from HKD 0.0143 in the same period last year[54]. - The basic and diluted loss per share for the period was HKD 0.54, compared to HKD 1.43 for the same period in 2022[93]. Operational Developments - The company has successfully implemented a "light asset model" for new store openings, which has reduced initial investment costs and optimized the financial model of mature stores[17]. - The number of stores in operation has increased to 14 across six cities, including new openings in Zhuhai, Xiamen, and Dongguan[20]. - The company opened 4 new stores, increasing the total number of stores to 13, up from 9 in the previous year[44]. - The company plans to expand its presence in 10 cities by the end of the year as part of its "Five Years, Fifty Cities" expansion plan[41]. - The company has launched a new brand "Yuegege" and opened its first center in Zhuhai, contributing to its market expansion strategy[45]. Financial Position - The company’s current ratio improved to 1.36 as of June 30, 2023, compared to 1.06 at the end of 2022, indicating better liquidity[31]. - As of June 30, 2023, the group's debt-to-equity ratio was 0.94, slightly down from 0.95 on December 31, 2022[33]. - Total liabilities decreased to HKD 426,307,000 from HKD 463,670,000, indicating improved financial stability[72]. - The company’s cash and cash equivalents increased to HKD 81,256,000 from HKD 53,847,000, indicating better liquidity[71]. - As of June 30, 2023, the group's cash and bank balance was approximately HKD 81,256,000, an increase from HKD 53,847,000 as of December 31, 2022[85]. - The company’s total liabilities as of June 30, 2023, were HKD 488,116,000, an increase from HKD 447,528,000 as of December 31, 2022[169]. Cost Management - Sales and marketing expenses decreased by 7.8% to approximately HKD 58.76 million, attributed to innovative marketing strategies[26]. - Administrative expenses decreased to approximately HKD 30,631,000, down by about HKD 7,341,000 or 19.3% from HKD 37,972,000 in the same period last year[50]. - Total employee costs, including director remuneration, were HKD 104,411,000 for the six months ended June 30, 2023, down from HKD 114,089,000 in 2022[140]. - Accrued expenses and other payables totaled HKD 37,858,000, a decrease of 52.8% from HKD 80,203,000 as of December 31, 2022[173]. Shareholder Returns - The company did not declare any interim dividend for the period, consistent with the previous year[29]. - The company does not recommend any interim dividend for the period, consistent with the previous year[140]. Compliance and Governance - The company has maintained compliance with the Corporate Governance Code throughout the reporting period[151]. - The company’s independent audit committee reviewed the accounting principles and practices adopted during the period, confirming compliance with relevant standards[163]. Strategic Initiatives - The company has received approval for a credit facility of RMB 16 million from Dongguan Rural Commercial Bank, which will support its acquisition strategy[35]. - The company aims to attract suitable talent for further development through its share incentive plan[181]. - As of the annual report date in 2022, the number of shares that can be issued under the share incentive plan is 431,501,497 shares, accounting for approximately 10% of the total issued shares as of the same date[184].

Financial Performance - The company's revenue for the year was HKD 679,946,000, an increase of HKD 37,373,000 or 5.8% compared to the previous year[29]. - The gross profit for the year was approximately HKD 98,740,000, a decrease of about HKD 106,672,000 or 51.9% from the previous year, resulting in a gross margin of 14.5%[29]. - The company reported a basic and diluted loss per share of HKD 0.0384, compared to a profit of HKD 0.0013 per share in the previous year[33]. - The group's net loss for the year was approximately HKD 178,140,000, a decrease of about HKD 212,925,000 compared to a profit of HKD 34,785,000 in 2021[57]. - Administrative expenses for the year amounted to approximately HKD 121,023,000, an increase of about 90.8% from HKD 63,421,000 in 2021, primarily due to increased non-cash expenses related to the share incentive plan[54]. - The total employee cost for the year, excluding director remuneration, was approximately HKD 289.31 million, an increase from HKD 223.40 million in 2021[119]. Expansion and Growth - The total number of stores increased from 9 to 12, with the addition of the new brand "Yuegege" in Zhuhai, which now has 2 stores[24]. - The company aims to expand to 10 cities by the end of 2023, adding 6 new cities to its current presence in Shenzhen, Beijing, Chengdu, and Zhuhai[21]. - The company has successfully completed two experimental projects in Longgang and Zhuhai, paving the way for future expansion[19]. - The group opened two new "Yuegege" brand centers in Zhuhai within six months, achieving a monthly signing volume of 55 contracts[47]. Financial Position and Assets - The current ratio as of December 31, 2022, was 1.06, down from 2.03 in the previous year, indicating a decrease in liquidity[36]. - The net asset value of the group decreased to approximately HKD 925,410,000, a reduction of HKD 324,333,000 from the previous year due to comprehensive expenses and the sale of real estate business[35]. - As of December 31, 2022, the net asset value per share was HKD 0.21, down from HKD 0.29 in 2021[59]. - The group had uncollateralized bonds payable of HKD 80,800,000 and secured bank loans of approximately HKD 348,165,000 as of December 31, 2022[60]. - The company has no assets pledged as of December 31, 2022[65]. Shareholder and Capital Management - The company aims to expand its shareholder and capital base through the issuance of convertible preferred shares[94]. - The total proceeds from the issuance of convertible preferred shares are estimated at HKD 224.72 million, with a net amount of approximately HKD 222.72 million after expenses[94]. - The estimated net price per share for the A and B class convertible preferred shares is approximately HKD 0.49 and HKD 0.69, respectively[95]. - The company plans to use approximately 70% of the net proceeds from the convertible preferred shares issuance to repay debts and the remaining for general working capital[95]. - The company plans to issue up to 374,531,836 ordinary shares upon full conversion of all convertible preferred shares[96]. - As of December 31, 2022, the company's distributable reserves amounted to approximately HKD 814.9 million, down from HKD 874.3 million in 2021[99]. Employee and Corporate Governance - The company has approximately 1,581 employees as of December 31, 2022, an increase from 1,548 employees in the previous year[140]. - The group maintains a good relationship with employees, with no significant recruitment difficulties or employee turnover issues reported this year[150]. - The group provides various career development and training programs for employees, emphasizing continuous learning as a core value[165]. - The group has a retirement benefits plan with a contribution rate of 5% based on employee income, capped at a monthly income level of HKD 30,000[145]. - The company confirmed compliance with disclosure requirements regarding connected transactions as per the listing rules[139]. - The board of directors has undergone changes, with new appointments made in December 2022[105]. Risk Management and Compliance - The company faces risks related to talent retention and compliance, and has appointed legal advisors for compliance reviews[71]. - The company’s financial risk management details are included in the consolidated financial statements[71]. - The company confirmed that there were no related party transactions that were not approved by the board and that did not comply with regulatory agreements[118]. - No directors held interests in any business that directly or indirectly competes with the company's operations during the year[133]. - The company does not have any controlling shareholders as of December 31, 2022, and is unaware of any significant contracts involving controlling shareholders[136]. Environmental and Social Responsibility - The company is committed to environmental sustainability and has implemented measures to reduce waste and energy consumption[73].

Financial Performance - Revenue for 2022 was HKD 679,946 thousand, an increase of 5.3% from HKD 642,573 thousand in 2021[2] - Gross profit decreased to HKD 98,740 thousand in 2022 from HKD 205,412 thousand in 2021, representing a decline of 52.0%[2] - Operating loss for 2022 was HKD 139,503 thousand, compared to an operating profit of HKD 60,711 thousand in 2021[3] - Total comprehensive loss for the year was HKD 244,727 thousand, a significant decrease from a comprehensive income of HKD 56,668 thousand in 2021[3] - The company reported a net loss attributable to owners of HKD 165,324 thousand in 2022, compared to a profit of HKD 5,300 thousand in 2021[5] - Basic and diluted loss per share for 2022 was HKD 3.84, compared to earnings of HKD 0.13 per share in 2021[6] - The reported segment loss for the maternity services division in 2022 was HKD (63,569,000), compared to a profit of HKD 56,528,000 in 2021, indicating a significant decline[50] - The company reported a comprehensive loss of HKD (178,140,000) for the year 2022, compared to a profit of HKD 34,785,000 in 2021[50] - The company reported a net loss of approximately HKD 178,140,000 for the year, a decrease of about HKD 212,925,000 compared to a profit of HKD 34,785,000 in the previous year[110] Assets and Liabilities - Total assets decreased to HKD 1,767,854 thousand in 2022 from HKD 2,424,079 thousand in 2021, a decline of 27.0%[11] - Non-current assets decreased to HKD 1,738,899 thousand in 2022 from HKD 1,807,091 thousand in 2021[11] - Current liabilities decreased to HKD 463,670 thousand in 2022 from HKD 598,870 thousand in 2021[13] - Total assets decreased from HKD 3,022,949,000 in 2021 to HKD 2,231,524,000 in 2022, a reduction of approximately 26.2%[51] - The total liabilities also decreased from HKD 1,773,206,000 in 2021 to HKD 1,306,114,000 in 2022, reflecting a decline of about 26.4%[51] - Total net assets decreased to approximately HKD 925,410,000, a reduction of HKD 324,333,000 compared to HKD 1,249,743,000 in the previous year[127] - As of December 31, 2022, the group had total liabilities of approximately HKD 348,165,000 in secured and guaranteed bank loans, down from HKD 758,881,000 in 2021, representing a decrease of about 54%[129] Revenue Sources - The revenue from maternity services was HKD 676,342,000, compared to HKD 631,976,000 in the previous year, indicating an increase of about 7.0%[38] - Revenue from external customers in 2022 was HKD 676,342,000, an increase from HKD 631,976,000 in 2021, representing a growth of approximately 7.5%[50] - Other income sources amounted to HKD 3,604,000, down from HKD 6,857,000 in 2021, reflecting a decrease of approximately 47.5%[38] Expenses - Administrative expenses rose to approximately HKD 121,023,000, an increase of 90.8% or HKD 57,602,000 compared to HKD 63,421,000 in the previous year[117] - Sales and distribution expenses increased to approximately HKD 148,453,000, up 38.1% or HKD 40,974,000 from HKD 107,479,000 in the previous year[118] - Employee costs increased to HKD 290,083,000 in 2022 from HKD 224,195,000 in 2021, marking an increase of approximately 29.4%[57] - Depreciation of property, machinery, and equipment increased to HKD 53,582 thousand in 2022 from HKD 45,375 thousand in 2021[70] Government Support and Financial Management - The company received government subsidies of HKD 7,844 thousand in 2022, up from HKD 4,577 thousand in 2021, primarily to support operations[9] - The company continues to adopt a going concern basis in preparing its consolidated financial statements, anticipating sufficient resources for the foreseeable future[24] - The group maintained sufficient working capital and cash for daily operations, with a focus on prudent financial management strategies[130] - The group has adopted a cautious treasury policy, with most cash and cash equivalents held in major financial institutions in China[147] Strategic Developments - The company successfully completed two experimental locations in Longgang and Zhuhai, with plans for full rollout in 2023[84] - In Zhuhai, the monthly order volume reached 55, making it the largest in the region, with plans for a third store[85] - The company aims to expand to 10 cities by the end of 2023, with plans to add six new cities to its existing four cities: Shenzhen, Beijing, Chengdu, and Zhuhai[99] - The company plans to open 50 maternity centers in major cities over the next five years, emphasizing a strategy of city-based expansion[100] - The company has established two new teams, the Innovative Aidi Gong team and the Yuegege team, to enhance its market presence and service offerings[98] - The company is transitioning to a more diversified service system to meet varying user demands across different regions in China[99] Shareholder Information - The company did not recommend a final dividend for the year, consistent with the previous year[79] - The weighted average number of ordinary shares used for calculating basic loss per share was 4,308,892 thousand shares in 2022, up from 4,065,605 thousand shares in 2021[73] - As of December 31, 2022, the company's net asset value per share was HKD 0.21, down from HKD 0.29 in the previous year[119] Financial Instruments and Reporting Standards - The company expects that the application of new Hong Kong Financial Reporting Standards will not have a significant impact on the consolidated financial statements in the foreseeable future[17] - The company has not early adopted any new Hong Kong Financial Reporting Standards that have been issued but are not yet effective[33] - The valuation methods for financial instruments will be calibrated to ensure that the results of the valuation methods at initial recognition are equal to the transaction price[18] Other Financial Metrics - The financial cost for the year was HKD 64,571 thousand, slightly down from HKD 65,670 thousand in the previous year[70] - The interest expense on bank and other borrowings decreased to HKD 53,775,000 from HKD 57,781,000, a reduction of about 7.0%[21] - The interest expense on lease liabilities increased to HKD 20,366,000 from HKD 18,855,000, an increase of approximately 8.0%[21] - The deferred tax expense for 2022 was HKD (32,754,000), compared to HKD (5,520,000) in 2021, indicating a significant increase in deferred tax liabilities[45] - The group recorded a gain of approximately HKD 4,793,000 from the sale of its subsidiary Dongguan Dongdi, with the total consideration for the sale being HKD 90,000,000[143] - The group issued a total of 374,531,836 shares upon full conversion of the issued convertible preferred shares, with a total consideration of HKD 224,719,101.6[135]

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 328,791,000, a slight increase from HKD 324,058,000 in the same period of 2021, representing a growth of 0.8%[11] - Gross profit for the same period was HKD 55,190,000, compared to HKD 128,235,000 in 2021, indicating a decline of 57.0%[11] - The company reported a loss of HKD 61,965,000 for the period, a significant decrease from a profit of HKD 27,061,000 in the previous year[11] - Total comprehensive loss for the period was HKD 88,992,000, compared to a comprehensive income of HKD 44,080,000 in 2021, reflecting a decline of 302.2%[14] - The basic and diluted loss per share for the period was HKD 1.43, compared to earnings of HKD 0.61 per share in the previous year[14] - The company reported a loss attributable to equity holders of HKD (61,505,000) for the six months ended June 30, 2022, compared to a profit of HKD 23,582,000 in the same period of 2021[74] - The group reported a loss before tax of approximately HKD 69,720,000, a decrease of about HKD 108,475,000 compared to a profit of HKD 38,755,000 in the same period last year[133] Assets and Liabilities - Non-current assets as of June 30, 2022, totaled HKD 1,934,558,000, an increase from HKD 1,807,091,000 at the end of 2021[16] - Current assets amounted to HKD 1,297,858,000, up from HKD 1,215,858,000 at the end of 2021, showing an increase of 6.7%[16] - The company's net current liabilities were HKD 604,178,000, a decrease from HKD 616,988,000 at the end of 2021[16] - The company’s total liabilities increased to HKD 2,538,736 thousand from HKD 2,424,079 thousand, indicating a rise of 4.7%[19] - Total assets as of June 30, 2022, amounted to HKD 3,232,416,000, with segment assets for maternity services at HKD 1,985,024,000[50][52] - The total liabilities were HKD 2,060,918,000, with segment liabilities for maternity services at HKD 1,119,339,000[54][56] Cash Flow and Financing - The net cash used in operating activities for the six months ended June 30, 2022, was HKD (105,870) thousand, compared to HKD (91,553) thousand for the same period in 2021, indicating a worsening cash flow situation[25] - The company reported a net cash inflow from financing activities of HKD 91,139 thousand, a decrease of 68.4% from HKD 288,646 thousand in the previous year[25] - The company’s cash and cash equivalents at the end of the period were HKD 92,104 thousand, down from HKD 126,990 thousand at the end of the previous year, reflecting a decrease of 27.3%[25] - The company reported other income from loan interest of HKD 1,787,000, down from HKD 3,854,000 in the previous year[34] - The company experienced significant order losses due to pandemic-related restrictions, estimating refunds totaling HKD 31,000,000 due to cancellations[106] Market Strategy and Expansion - The company plans to focus on expanding its market presence and enhancing product offerings in the upcoming periods[12] - The company continues to focus on expanding its maternity services in China, which remains its primary revenue driver[37] - The company plans to expand its postpartum care services based on the success of two pilot centers established in Guangdong, with further expansion expected in the second half of the year[116] - The company is actively exploring two new business lines, aiming to redefine the maternity center market in China[113] - The company is transitioning from a single flagship operation to a fleet of postpartum care centers, aiming for broader market engagement[117] Employee and Operational Costs - Employee costs totaled HKD 134,337,000 for the six months ended June 30, 2022, compared to HKD 89,666,000 in the previous year, reflecting a rise of 50.0%[71] - Administrative expenses for the period were approximately HKD 37,972,000, an increase of about HKD 9,510,000 or 33.4% compared to the same period last year[130] - Sales and distribution expenses were approximately HKD 63,755,000, an increase of about HKD 861,000 or 1.4% compared to the same period last year, remaining stable[131] - Financial costs for the period were approximately HKD 34,881,000, an increase of about HKD 1,981,000 or 6.0% compared to the same period last year[132] Shareholder and Governance - The company did not recommend any interim dividend for the period, consistent with the previous year[73] - The company has adopted the Corporate Governance Code and has complied with its provisions throughout the reporting period[174] - The company’s audit committee, composed entirely of independent non-executive directors, reviewed the accounting principles and the unaudited condensed consolidated financial statements for the period[178] - The chairman and CEO positions are held by the same individual, which the board believes is beneficial for the group's business prospects and management[174] Share Capital and Financing Activities - The company’s share capital increased to HKD 43,150 thousand from HKD 42,850 thousand, reflecting a growth of 0.7%[19] - The company plans to issue convertible preferred shares with a total consideration of HKD 224,719,101.6, with an estimated net proceeds of approximately HKD 222,719,000[156] - Approximately 70% of the net proceeds from the issuance of convertible preferred shares will be used to repay debts, with the remainder for general working capital[156] - The company issued bonds totaling HKD 25,200,000 with a fixed interest rate of 7% per annum, up from HKD 21,000,000 in the previous year[102] Miscellaneous - The company has not engaged in any arrangements that would allow directors to benefit from purchasing shares or debt securities during the reporting period[170] - No directors have interests in any business that directly or indirectly competes with the company's operations during the reporting period[169] - The company has no significant contingent liabilities as of June 30, 2022[151]

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]