Financial Performance - For the year ended December 31, 2022, the Group's turnover decreased by approximately 16% to approximately HK$142 million, compared to approximately HK$170 million for the year ended December 31, 2021[13]. - The gross profit margin for the Reporting Year was approximately 37%, down from approximately 54% in the Corresponding Year[14]. - The overall loss attributable to owners of the Company was approximately HK$54 million, an improvement from HK$103 million in the Corresponding Year[14]. - Revenue from the Chinese health product segment increased from approximately HK$114 million in FY21 to approximately HK$128 million in the Reporting Year[19]. - The money lending segment's revenue decreased from approximately HK$22 million in FY21 to approximately HK$15 million in the Reporting Year[19]. - The Group recorded net realized and unrealized losses on investment in financial instruments of approximately HK$16 million for FY22, compared to gains of approximately HK$18 million for FY21[20]. - Revenue from the investment in financial instruments segment decreased from a gain of approximately HK$34 million in FY21 to a loss of approximately HK$1 million in FY22[73]. - The Group recorded a revenue decrease of approximately 16%, from approximately HK$170 million in FY21 to approximately HK$142 million in FY22[73]. Segment Performance - The increase in revenue from Chinese health products was attributed to the Consumption Vouchers Scheme and the relaxation of social distancing measures by the Hong Kong Government[23]. - As of December 31, 2022, the Chinese health products segment recorded a segment profit of approximately HK$2 million, compared to a loss of HK$9 million in FY21[22]. - The Chinese herbal health products segment generated revenue of approximately HK$128 million in the reporting year, an increase from HK$114 million in FY21, with a segment profit of approximately HK$2 million compared to a loss of HK$9 million in FY21[25]. - The increase in revenue from herbal health products was primarily driven by the Hong Kong government's consumption voucher scheme and the relaxation of certain social distancing measures, which stimulated consumer spending[25]. - The money lending business generated interest income of approximately HK$15 million, down from HK$22 million in FY21, with a segment loss before taxation of approximately HK$30 million, significantly reduced from a loss of HK$98 million in FY21[28]. - The decrease in segment loss in the money lending business was mainly due to a reduction of approximately HK$78 million in the allowance for expected credit loss (ECL) during FY22[28]. Financial Position - As of December 31, 2022, the Group's loan receivables amounted to approximately HK$134 million, a slight decrease from approximately HK$139 million as of December 31, 2021[35]. - The total allowance for ECL on loan receivables was approximately HK$187 million, an increase of approximately HK$25 million compared to FY21[34]. - The Group's total equity at the end of 2022 was HK$57,313,000, a decrease from HK$59,304,000 at the end of 2021, representing a decline of approximately 3.3%[42]. - The Group's cash and bank balances decreased to approximately HK$17 million as of December 31, 2022, from HK$40 million as of December 31, 2021[66]. - Total borrowings increased to approximately HK$31 million as of December 31, 2022, from HK$12 million as of December 31, 2021[66]. - The Group's shareholders' equity decreased from approximately HK$193 million as of December 31, 2021, to approximately HK$139 million as of December 31, 2022, primarily due to operating losses[66]. - The Group's total assets amounted to HK$288 million as of December 31, 2022, financed by shareholders' funds, payables, and borrowings[110][113]. Governance and Risk Management - The Company has complied with all code provisions as set out in the Corporate Governance Code throughout the year ended December 31, 2022[142]. - The Group regularly monitors liquidity and financial position to mitigate liquidity risk[127]. - The Group performs comprehensive due diligence on potential acquisitions to manage strategic risk[126]. - The Company aims to maintain appropriate liquidity to cover financial commitments[127]. - The Group seeks legal advice as appropriate to manage legal and regulatory risks[130]. - The Board has adopted a corporate governance policy to ensure high standards of governance, aligning with the interests of stakeholders[144]. Board Composition and Activities - The Board comprises six Executive Directors and three Independent Non-executive Directors, ensuring a diverse range of skills and expertise[163]. - Fourteen Board meetings were held during the year ended December 31, 2022, ensuring regular oversight and governance[170]. - All Directors are subject to retirement by rotation every three years, ensuring accountability and fresh perspectives[171]. - All independent non-executive directors confirmed their independence in accordance with the Listing Rules for the year ended December 31, 2022[184]. - Continuous professional development activities were participated in by all directors during the reporting year, ensuring their skills remain relevant[193]. - The Board believes that a diversified Board brings constructive challenge and fresh perspectives to discussions[200].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對 因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 CHINA HEALTHWISE HOLDINGS LIMITED 中 國 智 能 健 康 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：348） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 公 告 業績 中國智能健康控股有限公司（「本公司」）董事會（「董事會」或「董事」）謹此宣 佈本公司及其附屬公司（「本集團」）於截至二零二二年十二月三十一日止 年度之經審核綜合業績連同截至二零二一年十二月三十一日止年度之比 較數字如下： 綜合損益及其他全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 收入 3 142,058 170,079 銷售成本 (88,788) (79,085) ...

Financial Performance - Revenue for the six months ended 30 June 2022 was HK$76,270,000, a decrease of 22% compared to HK$97,897,000 for the same period in 2021[3] - Gross profit for the period was HK$26,528,000, down 52% from HK$55,493,000 in the previous year[3] - Loss for the period attributable to owners of the Company was HK$15,176,000, compared to a profit of HK$36,569,000 in the same period last year[4] - Total comprehensive loss for the period was HK$15,337,000, a significant decline from a comprehensive income of HK$36,361,000 in the prior year[4] - Basic loss per share was (1.97) cents, compared to earnings of 4.75 cents per share in the previous year[4] - For the six months ended June 30, 2022, the company reported a total comprehensive loss of HK$15,337,000, compared to a total comprehensive income of HK$36,361,000 for the same period in 2021[13] - The company recognized a loss of HK$15,176,000 for the period, which is a significant decline compared to a profit of HK$36,569,000 for the same period in the previous year[13] - The gross profit margin for the period was approximately 35%, down from approximately 57% in the corresponding period[98] - The loss attributable to owners of the Company was approximately HK$15 million, compared to a profit of approximately HK$37 million in the corresponding period[98] Cash Flow and Liquidity - Net cash outflow from operating activities was HK$26,204,000, compared to an inflow of HK$13,829,000 in the same period last year[11] - Cash and cash equivalents at the end of the period were HK$28,753,000, a decrease from HK$40,007,000 at the beginning of the period[11] - As of June 30, 2022, the Group's cash and bank balances were approximately HK$29 million, down from approximately HK$40 million as of December 31, 2021[153] - Total borrowings and convertible loan notes increased to approximately HK$103 million as of June 30, 2022, compared to approximately HK$84 million as of December 31, 2021, resulting in a gearing ratio of approximately 58%[153] - The Group's total current assets were approximately HK$222 million, while total current liabilities were approximately HK$127 million, maintaining a current ratio of approximately 1.7[153] Assets and Liabilities - Non-current assets decreased to HK$83,777,000 from HK$112,236,000 as of 31 December 2021[7] - Current liabilities increased to HK$127,231,000 from HK$119,643,000 as of 31 December 2021[8] - Net assets decreased to HK$177,727,000 from HK$193,064,000 as of 31 December 2021[8] - The total liabilities increased to HK$127,898,000 as of June 30, 2022, compared to HK$121,031,000 at the end of 2021, an increase of 5.8%[38] - The Group's shareholders' equity decreased from approximately HK$193 million as of December 31, 2021, to approximately HK$178 million as of June 30, 2022, primarily due to operating losses during the period[153] Revenue Streams - The Group's principal activities include the sale of Chinese health products, money lending, and investment in financial instruments, which are key revenue streams[25] - Revenue from trading Chinese health products increased to HK$69,134,000 for the six months ended June 30, 2022, up from HK$59,873,000 in the same period of 2021, representing a growth of 15.8%[27] - Total revenue from other sources decreased to HK$7,227,000, down from HK$10,988,000, reflecting a decline of 34.5%[27] - The Chinese health products business contributed revenue of approximately HK$69 million during the period, representing an increase of approximately 15% from approximately HK$60 million in the corresponding period[100] - The money lending business generated revenue of approximately HK$7 million during the period, down from approximately HK$11 million in the corresponding period[100] Segment Performance - The segment profit before income tax for Chinese health products was HK$1,865,000, while the money lending business reported a loss of HK$4,720,000, leading to a total reportable segment loss of HK$8,042,000[32] - The Group's money lending business reported a segment loss of approximately HK$5 million, compared to a profit of HK$3 million in the corresponding period[111] - The Group's investment in financial instruments reported a segment loss of approximately HK$5 million for the period, compared to a profit of approximately HK$41 million in 2021, due to stock market deterioration[130] Credit Risk and Impairment - Impairment loss on loan receivables under the expected credit loss model increased to HK$2,547,000 from HK$1,128,000, indicating a rise in credit risk[27] - The accumulated allowance for expected credit losses (ECL) on loan receivables was approximately HK$165 million as of June 30, 2022, an increase of approximately HK$3 million from December 31, 2021[121] - The allowance for ECL for loans classified under stage 3 increased from approximately HK$155 million to approximately HK$157 million, primarily due to prolonged overdue interest and principal payments[119] Operational Developments - The Group plans to continue developing online sales channels for Chinese health products, with financial performance on its online platform and HKTVMall increasing in the first half of 2022[141] - A flagship store was established on Tmall Global in mid-2022 to enhance online presence and sales[141] - The Group aims to broaden its revenue base by targeting youth and middle-class consumers in Hong Kong for its health care products[142] - The Group expects that cost reduction measures, such as renewing rental agreements on more favorable terms, will help maintain a sound financial position[142] Governance and Compliance - The Company has complied with all code provisions of the Corporate Governance Code throughout the six months ended June 30, 2022[193] - The Company has established an Audit Committee to oversee the financial reporting process and risk management systems[200] Miscellaneous - The Group did not recommend the payment of an interim dividend for the six months ended 30 June 2022[97] - The Group did not experience any changes in its capital structure during the period[162] - The Group currently has no foreign currency hedging policy but will monitor foreign exchange risks and consider hedging when necessary[159]

Financial Performance - For the year ended December 31, 2021, the Group's turnover from continuing operations increased by approximately 23% to approximately HK$170 million, compared to approximately HK$138 million for the year ended December 31, 2020[14]. - The gross profit margin from continuing operations for the Reporting Year was approximately 54%, compared to approximately 44% in the Corresponding Year[15]. - The overall loss attributable to owners of the Company was approximately HK$103 million, compared with HK$25 million in the Corresponding Year[15]. - Revenue from the investment in financial instruments segment improved from a loss of HK$4 million in FY20 to a gain of HK$34 million in the Reporting Year[20]. - Revenue from the Chinese health product segment increased slightly from HK$112 million in FY20 to HK$114 million in the Reporting Year[20]. - Revenue from the money lending segment decreased from HK$30 million in FY20 to HK$22 million in the Reporting Year[20]. - The Group recorded a loss attributable to shareholders of approximately HK$103 million in FY21, compared to a loss of approximately HK$25 million in FY20[94]. - The Group recorded a loss of approximately HK$15 million from changes in the fair value of financial assets at fair value through profit or loss in FY21, compared to a loss of HK$5 million in FY20[41]. Investment and Financial Instruments - The net realised and unrealised gains on investment of financial instruments were HK$18 million for FY21, compared to net losses of HK$10 million in FY20[21]. - The investment in financial instruments generated a net gain of approximately HK$34 million in FY21, compared to a net loss of approximately HK$4 million in FY20, resulting in a segment profit of approximately HK$17 million[41]. - The total value of listed equities held by the Group decreased from HK$107.7 million at the beginning of FY21 to HK$59.3 million at the end of FY21, reflecting a loss of HK$48.5 million from disposals[43]. - The Group's significant Hong Kong listed equities include Huanxi Media Group Limited, which had a fair value loss of HK$3.256 million during FY21[46]. Credit Loss and Loan Receivables - The expected credit loss provision on loan receivables increased from HK$49 million in FY20 to HK$103 million in the Reporting Year[21]. - The allowance for expected credit loss (ECL) on loan receivables increased to HK$162 million, a rise of HK$103 million compared to FY20, with HK$155 million recognized for loans classified under stage 3 (credit-impaired)[32]. - The increase in ECL allowance was primarily attributed to the adverse impact of the COVID-19 pandemic on customers' financial conditions and cash flows[36]. - The Group's expected credit loss provisions for receivables have significantly increased due to the adverse financial impact of the COVID-19 pandemic on several clients[39]. - The Group's loan receivables amounted to HK$301 million, an increase from HK$282 million as of December 31, 2020[37]. - The Group granted seven new loans totaling HK$100 million and extended repayment dates for two loans totaling HK$41 million during FY21[29]. - At the end of the Reporting Year, nine loans remained outstanding, with six classified under stage 1 (initial recognition) totaling HK$132 million and three classified under stage 3 (credit-impaired) totaling HK$169 million[34]. Operational Metrics - The Group's online sales channel through "HKTVmall" reported a turnover growth of over 12% during the Reporting Year[55]. - The debtor turnover days improved to 12 days in FY21 from 18 days in FY20[106]. - The Group's total borrowings were approximately HK$12 million as of 31 December 2021, down from HK$20 million as of 31 December 2020[70]. - The current ratio of the Group was approximately 168% as of 31 December 2021, a decrease from 578% as of 31 December 2020[70]. - The Group's shareholders' fund decreased from approximately HK$296 million as of December 31, 2020, to approximately HK$193 million as of December 31, 2021, due to operating losses[70]. Corporate Governance - The Board comprises six Executive Directors and three Independent Non-executive Directors, with no relationships among them[161]. - All Directors confirmed compliance with the Model Code for Securities Transactions during the year ended December 31, 2021[159]. - The Company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with defined written terms of reference[176]. - The Company has adopted corporate governance policies in line with the Hong Kong Stock Exchange Listing Rules[158]. - The Board is responsible for monitoring management performance and approving financial statements and annual budgets[160]. Future Outlook and Strategy - The Group plans to establish another solely operated "Nam Pei Hong Overseas Flagship Shop" in Tmall Global in 2022 to enhance brand awareness in China[57]. - The Group aims to diversify revenue sources through investments and acquisitions of promising businesses or projects[65]. - The Group's money lending business is expected to face a difficult environment due to the ongoing COVID-19 pandemic[63]. - The Group's operations rely on support from suppliers and financial institutions, with sufficient working capital expected for the next twelve months barring unforeseen circumstances[127].

The board of directors (the "Board" or "Directors") of China Healthwise Holdings Limited (the "Company") is pleased to announce the unaudited condensed consolidated results of the Company and its subsidiaries (together the "Group") for the six months ended 30 June 2021 together with the comparative figures for the corresponding period for the six months ended 30 June 2020. These interim consolidated financial statements have not been audited but have been reviewed by the Company's Audit Committee. CONDENSED ...

Contents 目錄 | | Pages | | --- | --- | | | 頁次 | | Corporate Information | 2 | | 公司資料 | | | Chairman's Statement | 5 | | 主席報告 | | | Management Discussion and Analysis | 14 | | 管理層討論及分析 | | | Corporate Governance Report | 25 | | 企業管治報告 | | | Report of the Directors | 41 | | 董事會報告 | | | Independent Auditors' Report | 60 | | 獨立核數師報告 | | | Consolidated Statement of Profit or Loss and Other Comprehensive Income | 66 | | 綜合損益及其他全面收益表 | | | Consolidated Statement of Financial Position | 70 | | 綜合財務狀況表 | | | Consolid ...

Financial Performance - Revenue for the six months ended June 30, 2020, was HK$117,838,000, a decrease of 50.9% compared to HK$239,836,000 for the same period in 2019[7]. - Gross profit for the same period was HK$46,103,000, down 18.4% from HK$56,497,000 in the prior year[7]. - Loss before income tax was HK$40,247,000, compared to a loss of HK$75,499,000 for the six months ended September 30, 2019, indicating an improvement[7]. - Loss for the period attributable to owners of the Company was HK$38,617,000, a reduction from HK$79,048,000 in the previous year[8]. - Total comprehensive loss for the period was HK$38,627,000, compared to HK$69,795,000 for the same period in 2019[8]. - Basic loss per share attributable to owners of the Company was (0.49) cents, an improvement from (0.93) cents in the prior year[8]. - The Group's consolidated loss before income tax for the six months ended June 30, 2020, was HK$40,247,000, an improvement from a loss of HK$75,499,000 for the same period in 2019, indicating a 46.5% reduction in losses[53]. - The overall loss attributable to owners of the Company was approximately HK$39 million, compared to a loss of approximately HK$77 million in the corresponding period[127]. Revenue Breakdown - Revenue from contracts with customers for the six months ended June 30, 2020, was HK$117,838,000, a decrease of 50.0% compared to HK$239,836,000 for the same period in 2019[44]. - Sale of goods generated HK$102,637,000 in revenue for the six months ended June 30, 2020, down from HK$227,973,000 in the prior year, representing a decline of 55.0%[44]. - Revenue from the OBM Toys segment for the six months ended June 30, 2020, was HK$44,641,000, while the Chinese health products segment generated HK$57,996,000[51]. - Revenue from proprietary brand toy manufacturing segment generated approximately HK$18.586 million from a single external customer, accounting for over 10% of the group's revenue for the six months ended June 30, 2020[60]. - Revenue from the PRC and Hong Kong for the six months ended June 30, 2020, was HK$73,735,000, an increase from HK$63,252,000 in the same period of 2019[55]. Expenses and Costs - The Company reported a finance cost of HK$13,215,000, which increased from HK$12,365,000 in the previous year[7]. - Selling and distribution expenses decreased to HK$25,640,000 from HK$37,971,000, reflecting cost control measures[7]. - General and administrative expenses slightly decreased to HK$23,858,000 from HK$25,901,000, showing effective management of operational costs[7]. - The Group's impairment loss on loans, trade, and other receivables was HK$7,736,000 for the current interim period, slightly down from HK$8,232,000 in the previous year[44]. Assets and Liabilities - As of June 30, 2020, total assets amounted to HK$469,929,000, a decrease from HK$544,575,000 as of December 31, 2019, representing a decline of approximately 13.6%[11]. - Net current assets decreased to HK$205,409,000 from HK$280,997,000, reflecting a reduction of about 26.9%[12]. - Total equity decreased to HK$283,054,000 from HK$326,673,000, a decline of about 13.3%[12]. - The company’s borrowings increased to HK$36,013,000 from HK$18,685,000, representing an increase of approximately 92.5%[11]. - The total liabilities of the Group as of June 30, 2020, were HK$271,187,000, with segment liabilities totaling HK$170,730,000[54]. Cash Flow - The company reported a net cash outflow from operating activities of HK$21,274,000 for the six months ended June 30, 2020, compared to a net inflow of HK$94,602,000 for the same period in 2019[15]. - Cash and cash equivalents at the end of the period were HK$24,668,000, down from HK$123,081,000 at the end of the previous period, indicating a decrease of approximately 80%[15]. - The company reported a net cash inflow from investing activities of HK$16,294,000 for the six months ended June 30, 2020, compared to a net outflow of HK$2,820,000 for the same period in 2019[15]. Shareholder Equity and Repurchases - The company repurchased and canceled shares worth HK$11,240,000 during the period, contributing to a reduction in equity[18]. - The total equity attributable to owners of the company decreased to HK$283,054,000 as of June 30, 2020, down from HK$326,673,000 at the beginning of the year[18]. - The Company repurchased a total of 139,600,000 ordinary shares at an aggregate consideration of HK$4,281,000[98]. - A total of 112,400,000 ordinary shares were cancelled during the six months ended June 30, 2020, which included shares repurchased in the previous nine months[100]. Compliance and Reporting - The financial statements have been prepared in accordance with HKAS 34, indicating compliance with interim financial reporting standards[20]. - The company has early applied the Amendment to HKFRS 16 related to COVID-19-Related Rent Concessions, which may impact financial reporting[31]. - The comparative figures for the current interim period are not directly comparable to those of the previous period due to a change in the financial year end date[30]. Market and Operational Impact - The Group's operations and revenue may be negatively affected by the ongoing COVID-19 pandemic and related measures[123]. - The Own Brand Manufacturing (OBM) toys segment experienced a revenue decline of approximately 75%, from approximately HK$179 million to approximately HK$45 million, primarily due to the impact of COVID-19[138]. - North America accounted for approximately 98% of the OBM toys segment revenue, with shipments amounting to approximately HK$43 million, down from HK$173 million in the previous year[140]. Future Outlook - The Group plans to continue investing in the health care business and develop its retail business for "Sum Yung" and dried seafood products in Hong Kong[158]. - The Group is actively seeking to diversify its revenue sources through investments and acquisitions of promising businesses or projects[160].

Financial Performance - For the nine months ended 31 December 2019, the Group's turnover from continuing operations decreased by approximately 31% to approximately HK$310 million, compared to approximately HK$452 million for the year ended 31 March 2019[19]. - Gross profit margin from continuing operations for the Reporting Period was approximately 28%, down from approximately 36% in the Corresponding Period[20]. - The overall loss attributable to owners of the Company was approximately HK$124 million, compared with HK$95 million in the Corresponding Period[20]. - Revenue from continuing operations decreased by approximately 31% to about HK$310 million for the nine months ended December 31, 2019, compared to approximately HK$452 million for the year ended March 31, 2019[23]. - Gross profit decreased to approximately HK$88 million for the reporting period, with a gross profit margin of approximately 28%, down from 36% in FY18/19[113]. - Other income, gains, and losses net from continuing operations resulted in a loss of approximately HK$82 million, an increase of approximately 74% compared to a loss of HK$47 million in FY18/19[114]. - Selling and distribution expenses decreased to approximately HK$59 million, representing a decrease of approximately 32% against approximately HK$87 million in the corresponding period[115]. - General and administrative expenses for the nine months ended 31 December 2019 amounted to approximately HK$42 million, a decrease of approximately 49% compared to HK$82 million in the previous year[122]. - The Group recorded a loss attributable to shareholders of approximately HK$124 million in the Reporting Period, compared to a loss of approximately HK$95 million in FY18/19[127]. Dividend and Shareholder Information - The Company does not recommend the payment of any dividend for the nine months ended 31 December 2019[20]. - The company did not recommend any dividend payment for the nine months ended December 31, 2019, consistent with the previous fiscal year[23]. - Shareholders' funds decreased from approximately HK$393 million as of March 31, 2019, to approximately HK$327 million as of December 31, 2019, mainly due to share repurchases and operating losses during the reporting period[156]. - The Company repurchased a total of 676,900,000 ordinary shares at an aggregate price of approximately HK$30 million, which were subsequently cancelled[182]. Changes in Financial Year and Corporate Structure - The change in financial year end date from 31 March to 31 December was made to align with the financial year end date of a substantial shareholder[18]. - The financial year end date change aims to minimize resources, such as audit fees, for the preparation of audited consolidated financial statements[18]. - The Company reported a significant influence from its substantial shareholder, which prompted the change in financial year end date[18]. - The annual results presented are for a nine-month period instead of the usual twelve months due to the change in financial year end[19]. - The Group's corporate structure includes multiple subsidiaries involved in investment holdings and trading of health-related products[12]. Revenue Segments - Revenue from the Chinese health products segment decreased from HK$155 million in FY 18/19 to HK$89 million in the reporting period, resulting in a segment loss of approximately HK$18 million[25][28]. - The Own Brand Manufacturing (OBM) business recorded a sales increase of approximately 10%, with revenue rising from approximately HK$184 million for the year ended March 31, 2019, to approximately HK$202 million for the nine months ended December 31, 2019[29][32]. - North America accounted for approximately 63% of the group's total revenue from continuing operations, with shipments amounting to approximately HK$195 million during the nine months ended December 31, 2019[36][39]. - The consumer electronic products segment recorded no revenue during the reporting period, down from HK$42 million in FY18/19, and incurred a segment loss of HK$22 million compared to a loss of HK$16 million in the previous year[55]. - The Chinese health products segment generated approximately HK$89 million in revenue, down from HK$155 million in FY18/19, with a segment loss of approximately HK$18 million[90]. Financial Instruments and Investments - The investment in financial instruments business reported a net loss of approximately HK$2 million, a significant decline from a gain of HK$43 million in FY18/19, with a segment loss of approximately HK$61 million compared to a loss of HK$2 million in FY18/19[42]. - Losses from changes in fair value of financial assets at fair value through profit or loss amounted to approximately HK$58 million, compared to a gain of HK$43 million in FY18/19[42]. - The Group's listed equities decreased from HK$228 million at the beginning of the period to HK$139 million at the end of the period, reflecting a loss of approximately HK$58 million due to fair value changes[44]. - The Group's significant listed equities held as of December 31, 2019, included IDG Energy Investment Limited with a fair value loss of HK$5.2 million, and Global Mastermind Capital Limited with a fair value loss of HK$21.3 million[48]. - The Group's investment portfolio in Hong Kong listed equities was reduced to 10 from 15, with an aggregate acquisition cost of approximately HK$1 million compared to HK$196 million in FY18/19[99]. Cash Flow and Liquidity - The Group's cash flow remains unaffected by the expected credit loss provision adjustments[40]. - The Group's cash and bank balances remained stable at approximately HK$55 million as of 31 December 2019[78]. - The current ratio decreased to approximately 206% as of 31 December 2019, down from 295% as of 31 March 2019[78]. - The Group's loans receivables increased slightly to HK$264 million as of 31 March 2019, up from HK$261 million[71]. - Total bank borrowings increased to approximately HK$19 million as of 31 December 2019, up from HK$13 million[78]. - The gearing ratio rose to approximately 39% as of 31 December 2019, compared to 29% as of 31 March 2019[78]. Management and Governance - The Board comprises six Executive Directors and three Independent Non-executive Directors, with no relationships among Board members[198]. - The company has complied with all provisions of the Corporate Governance Code, except for deviations from code A.4.1 and A.6.7[191]. - The company has adopted a Model Code for Securities Transactions by Directors, ensuring compliance during the nine months ended December 31, 2019[196]. - The Board is responsible for leadership, control, and monitoring management performance, focusing on business strategy and financial approvals[197]. - The company emphasizes high standards of corporate governance to manage business risks and enhance transparency[189]. Strategic Initiatives and Market Conditions - The demand for Chinese health care products has grown steadily due to increasing health awareness and an aging population in Hong Kong[60]. - The retail market in Hong Kong has been negatively impacted by a reduction in tourist numbers due to local social unrest and the global Coronavirus outbreak[61]. - The company plans to continue investing in the health care business and develop its retail offerings of "Sum Yung" dried seafood products and other healthy food products to broaden its revenue base[62]. - Kid Galaxy has received commitments from major customers for 2020 but will lower sales forecasts due to the impact of the Coronavirus outbreak[63]. - The reliance on Chinese manufacturing has raised concerns about supply chain disruptions due to the Coronavirus, prompting Kid Galaxy to shift some production to an Indonesian manufacturer[64]. - A partnership with a major third-party online reseller is expected to enhance online sales in 2020[65].

2019 INTERIM REPORT 中期報告 | | | | Unaudited | | | --- | --- | --- | --- | --- | | | | | 未經審核 | | | | | | Six months ended | | | | | | 30 September | | | | | | 截至九月三十日止六個月 | | | | | | 2019 | 2018 | | | | | 二零一九年 | 二零一八年 | | | | Notes | HK$'000 | HK$'000 | | | | 附註 | 千港元 | 千港元 (Re-presented) | | | | | | （經重列） | | Continuing operations | 持續經營業務 | | | | | Revenue | 收入 | 4 | 239,836 | 259,211 | | Cost of sales | 銷售成本 | | (183,339) | (148,221) | | Gross profit | 毛利 | | 56,497 | 110,990 | | Other revenue, gains and ...

Financial Performance - China Healthwise Holdings Limited reported a consolidated revenue of HKD 150 million for the fiscal year 2018/19, representing a 10% increase compared to the previous year[12]. - The company achieved a net profit of HKD 30 million, which is a 15% increase year-on-year, indicating improved operational efficiency[12]. - For the year ended 31 March 2019, the Group's turnover from continuing operations decreased by approximately 19% to approximately HK$452 million, compared to approximately HK$561 million for the year ended 31 March 2018[17]. - The Group recorded a revenue decrease of approximately 19%, from approximately HK$561 million for the year ended March 31, 2018, to approximately HK$452 million for the year ended March 31, 2019[99]. - Revenue from the consumer electronic products segment significantly decreased from approximately HK$292 million in FY17/18 to approximately HK$42 million in FY18/19 due to the expiry of the contract with Haier[19]. - The OBM toys segment recorded a sales increase of approximately 47%, rising from approximately HK$125 million in FY17/18 to approximately HK$184 million in FY18/19[29]. - The Chinese health products segment generated approximately HK$155 million in revenue, an increase from HK$134 million in the previous period[81]. - The investment in financial instruments segment reported revenue of approximately HK$43 million, with a segment loss of approximately HK$2 million, compared to a loss of HK$67 million in FY17/18[88]. Market Expansion and Strategy - User data showed a growth in customer base by 20%, reaching a total of 500,000 active users by the end of the fiscal year[12]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share over the next two years[12]. - Future guidance indicates a projected revenue growth of 15% for the next fiscal year, driven by new product introductions and market expansion strategies[12]. - A new marketing strategy focusing on digital channels is expected to increase brand awareness and customer engagement by 40%[12]. - The Group will maintain a multi-brand and multi-product strategy while strictly controlling costs to address challenges in the childcare products market[62]. Financial Position and Assets - The Group's total current assets rose to approximately HK$588 million as of 31 March 2019, compared to HK$358 million as of 31 March 2018[68]. - The current ratio improved to approximately 295% as of 31 March 2019, up from 110% as of 31 March 2018[68]. - Shareholders' fund increased from approximately HK$274 million as of 31 March 2018 to approximately HK$393 million as of 31 March 2019, primarily due to shares placing during the year[68]. - The Group's total assets amounted to HK$698 million as of 31 March 2019, financed by shareholders' funds, payables, and borrowings[136][137]. - The Group's loans receivables increased sharply to HK$261 million as of 31 March 2019, up from HK$35 million as of 31 March 2018[66]. Cost Management and Efficiency - Research and development expenses increased by 30%, reflecting the company's commitment to innovation and new technology[12]. - The management streamlined distribution networks to reduce costs and focus on large distributors with extensive networks[28]. - Selling and distribution expenses decreased to approximately HK$87 million, representing a decrease of approximately 23% from approximately HK$113 million in the previous year[103]. - General and Administrative (G&A) expenses amounted to approximately HK$82 million, a decrease of approximately 5% compared to HK$86 million in FY17/18[110]. - Cost of goods sold (COGS) decreased by approximately 28% to approximately HK$287 million in FY18/19 from approximately HK$400 million in FY17/18[100]. Risk Management - The management has identified principal risks including strategic, economic, credit, and market risks, with mitigating actions in place to address these challenges[155][160]. - The company has implemented measures to mitigate liquidity risk by regularly monitoring financial position and maintaining appropriate liquidity[163]. - Price risk is managed by diversifying equity investments and regularly monitoring the equity portfolio[163]. - Exchange risk is addressed through the use of financial instruments such as forward exchange contracts to hedge against foreign exchange rate fluctuations[163]. - Legal and regulatory risks are managed by monitoring changes in the regulatory environment and ensuring sufficient resources are available for compliance[165]. Corporate Governance - The Company has adopted the Corporate Governance Code as a guideline for its governance policies[182]. - The Board comprises five Executive Directors, one Non-executive Director, and three Independent Non-executive Directors, with no relationships among them[183]. - The Board held a total of twenty-five meetings during the year ended March 31, 2019[186]. - The Company emphasizes high standards of corporate governance to manage business risks and protect stakeholders' interests[172]. - Independent Non-executive Directors are appointed for a specific term of three years and are subject to retirement by rotation every three years[187]. Shareholder Activities - A total of 1,420,000,000 new shares were issued at a placing price of HK$0.11 per share, raising approximately HK$150 million for business operations[171]. - Approximately HK$120 million of the proceeds from the share placement was allocated for money lending business, while HK$30 million was designated for general working capital and future investment opportunities[171]. - The company entered into a subscription agreement for a bond issuance of HK$120 million, with net proceeds of approximately HK$119.5 million intended for money lending and working capital[171]. - As of March 31, 2019, all net proceeds from both the share placement and bond issuance were utilized as intended[171].