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].

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].

[Financial Summary](index=3&type=section&id=Financial%20Summary) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended September 30, 2019, revenue from continuing operations decreased by 7.5% to **HKD 239.8 million**, gross profit fell 49% to **HKD 56.5 million**, and loss for the period expanded to **HKD 79.05 million** due to investment losses | Metric (Continuing Operations) | H1 2019 (HKD thousands) | H1 2018 (HKD thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 239,836 | 259,211 | -7.5% | | Gross Profit | 56,497 | 110,990 | -49.1% | | Loss Before Income Tax | (75,499) | (19,524) | +286.7% | | Loss for the Period | (79,048) | (19,524) | +304.9% | | Loss Attributable to Owners of the Company | (76,977) | (18,712) | +311.4% | | Basic Loss Per Share (HK cents) | (0.93) | (0.22) | +322.7% | - The company had discontinued operations in the prior period, resulting in a loss of **HKD 20.39 million**, with no such operations in the current period[7](index=7&type=chunk)[8](index=8&type=chunk) [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of September 30, 2019, total assets increased slightly to **HKD 714.7 million**, but total liabilities rose to **HKD 414.1 million**, reducing net assets to **HKD 300.6 million** while maintaining a healthy current ratio of 2.1x | Metric | Sep 30, 2019 (HKD thousands) | Mar 31, 2019 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 103,214 | 109,426 | -5.7% | | Current Assets | 611,497 | 588,366 | +3.9% | | **Total Assets** | **714,711** | **697,792** | **+2.4%** | | Current Liabilities | 288,835 | 198,854 | +45.2% | | Non-current Liabilities | 125,279 | 105,498 | +18.8% | | **Total Liabilities** | **414,114** | **304,352** | **+36.1%** | | **Net Assets** | **300,597** | **393,440** | **-23.6%** | - The balance sheet first recognized **right-of-use assets** (**HKD 21.07 million**) and **lease liabilities** (**HKD 21.36 million**) due to the adoption of Hong Kong Financial Reporting Standard 16 (HKFRS 16)[10](index=10&type=chunk)[11](index=11&type=chunk)[28](index=28&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Operating cash flow significantly improved from a net outflow of **HKD 140.9 million** to a net inflow of **HKD 94.6 million**, with cash and cash equivalents increasing to **HKD 123.1 million** at period-end | Metric | H1 2019 (HKD thousands) | H1 2018 (HKD thousands) | | :--- | :--- | :--- | | Net Cash Inflow/(Outflow) from Operating Activities | 94,602 | (140,891) | | Net Cash Outflow from Investing Activities | (2,820) | (2,391) | | Net Cash (Outflow)/Inflow from Financing Activities | (21,753) | 123,707 | | **Net Increase/(Decrease) in Cash and Cash Equivalents** | **70,029** | **(19,575)** | | Cash and Cash Equivalents at End of Period | 123,081 | 31,978 | [Management Discussion and Analysis](index=33&type=section&id=Management%20Discussion%20and%20Analysis) [Results, Business Review and Prospects](index=33&type=section&id=Results%2C%20Business%20Review%20and%20Prospects) During the period, revenue from continuing operations declined 7% to **HKD 240 million**, gross margin fell from 43% to 24%, and loss attributable to owners expanded to **HKD 77 million**, primarily due to a significant increase in losses from financial instrument investments - Revenue decline was mainly due to zero revenue from consumer electronics and a drop in Chinese health products due to a weak Hong Kong retail market[154](index=154&type=chunk)[159](index=159&type=chunk) - Gross margin decline was primarily due to a **HKD 2 million loss** on financial instrument sales in the current period, compared to a **HKD 44 million realized gain** in the prior period[155](index=155&type=chunk)[159](index=159&type=chunk) - The core driver of the expanded overall loss was a sharp increase in losses from the **investment in financial instruments segment** from approximately **HKD 6 million** in the prior period to **HKD 54 million** in the current period[156](index=156&type=chunk)[159](index=159&type=chunk) [Segment Business Review and Prospects](index=34&type=section&id=Segment%20Business%20Review%20and%20Prospects) Segment performance varied, with OBM toys seeing strong growth, Chinese health products declining due to local unrest, consumer electronics divested, money lending stable, and financial instrument investments incurring significant losses [Own Brand Manufacturing (OBM) Toys](index=35&type=section&id=OBM%20Toys) This segment's revenue increased by 66% to **HKD 179 million**, driven by strong North American market recovery and increased deliveries to key retail channels, though future sales may decline due to tariff uncertainties - OBM toy business revenue increased by approximately **66%** from **HKD 108 million** in the prior period to **HKD 179 million**[168](index=168&type=chunk)[172](index=172&type=chunk) - The North American market was the primary growth driver, with shipments to the region reaching **HKD 173 million**, accounting for **72%** of the Group's total revenue[170](index=170&type=chunk) - The company expects a slight decline in 2020 sales, with profit margins potentially impacted by tariff threats[187](index=187&type=chunk) [Chinese Health Products](index=34&type=section&id=Chinese%20Health%20Products) Revenue for this segment decreased from **HKD 58 million** to **HKD 49 million**, resulting in a loss of **HKD 6 million**, primarily due to reduced tourist numbers and a weak retail market in Hong Kong caused by social unrest | Metric | H1 2019 | H1 2018 | | :--- | :--- | :--- | | Revenue | Approx. HKD 49 million | Approx. HKD 58 million | | Segment (Loss)/Profit | Approx. (HKD 6) million | Approx. (HKD 1) million | - Performance decline was mainly due to local social unrest since June 2019 impacting Hong Kong's retail market and tourist numbers[192](index=192&type=chunk)[196](index=196&type=chunk) [Consumer Electronic Products](index=34&type=section&id=Consumer%20Electronic%20Products) This segment generated no revenue and incurred a **HKD 3 million** loss due to the expiration of a supply contract, leading to its divestment after the reporting period to improve the Group's financial position - No revenue contribution in the current period (compared to **HKD 37 million** in the prior period), with a segment loss of **HKD 3 million**[161](index=161&type=chunk)[165](index=165&type=chunk) - Due to continuous losses, the company sold this business segment on October 27, 2019, to improve the Group's financial position[162](index=162&type=chunk)[165](index=165&type=chunk) [Money Lending Business](index=36&type=section&id=Money%20Lending) The money lending business remained stable, generating approximately **HKD 14 million** in interest income and **HKD 8 million** in segment profit, with the Group planning to continue prudent development and strengthen risk control | Metric | H1 2019 | H1 2018 | | :--- | :--- | :--- | | Interest Income | Approx. HKD 14 million | Approx. HKD 11 million | | Segment Profit (Pre-tax) | Approx. HKD 8 million | Approx. HKD 7 million | - During the period, the Group granted new loans totaling **HKD 199 million**, with customers repaying **HKD 115 million**, and outstanding loan balances at period-end were **HKD 196 million**[175](index=175&type=chunk)[198](index=198&type=chunk) [Investment in Financial Instruments](index=36&type=section&id=Investment%20in%20Financial%20Instruments) This segment recorded a significant loss of **HKD 54 million**, primarily due to unfavorable stock market conditions, including **HKD 52 million** in fair value changes and **HKD 2 million** in realized sales losses, causing the market value of listed equities to drop to **HKD 145 million** - Segment loss of approximately **HKD 54 million**, a significant increase from **HKD 6 million** in the prior period[176](index=176&type=chunk)[178](index=178&type=chunk) | Major Holdings (as of Sep 30, 2019) | Fair Value (HKD thousands) | % of Total Assets | Fair Value (Loss)/Gain for the Period (HKD thousands) | | :--- | :--- | :--- | :--- | | IDG Energy Investment Limited (650) | 46,000 | 6.4% | 400 | | Yunfeng Financial Group Limited (376) | 26,040 | 3.6% | (9,709) | | Global Mastermind Capital Holdings Limited (905) | 19,745 | 2.8% | (19,159) | [Group Resources and Liquidity](index=40&type=section&id=Group%20Resources%20and%20Liquidity) As of September 30, 2019, the Group's financial position remained stable with cash increasing to **HKD 123 million** and a current ratio of 212%, though the debt-to-equity ratio rose to 44% due to share repurchases and operating losses | Metric | Sep 30, 2019 | Mar 31, 2019 | | :--- | :--- | :--- | | Cash and Bank Balances | Approx. HKD 123 million | Approx. HKD 55 million | | Debt-to-Equity Ratio | Approx. 44% | Approx. 29% | | Current Ratio | Approx. 212% | Approx. 296% | - Trade receivables significantly increased by **315%** to **HKD 129 million**, primarily due to increased OBM toy orders from US customers seeking to mitigate tariff uncertainties[206](index=206&type=chunk)[211](index=211&type=chunk) - Shareholders' equity decreased from **HKD 393 million** to **HKD 301 million**, mainly due to share repurchases and operating losses during the period[200](index=200&type=chunk)[203](index=203&type=chunk) [Notes to the Unaudited Condensed Consolidated Interim Financial Statements](index=9&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [Changes in HKFRSs](index=10&type=section&id=2.%20Changes%20in%20HKFRSs) The Group adopted HKFRS 16 'Leases' for the first time, significantly impacting the financial statements by recognizing new right-of-use assets and lease liabilities, with a cumulative effect transition approach - The adoption of **HKFRS 16** is the most significant accounting policy change this period, replacing the previous **HKAS 17** Leases standard[28](index=28&type=chunk)[31](index=31&type=chunk) | Impact on Statement of Financial Position as of April 1, 2019 | Amount (HKD thousands) | | :--- | :--- | | **Increase:** Right-of-use assets | 15,290 | | **Increase:** Lease liabilities (current) | 6,108 | | **Increase:** Lease liabilities (non-current) | 9,182 | [Revenue, other revenue, gains and losses, net and segmental information](index=15&type=section&id=4.%20Revenue%2C%20other%20revenue%2C%20gains%20and%20losses%2C%20net%20and%20segmental%20information) Total revenue from continuing operations was **HKD 240 million**, with OBM toys as the largest contributor at **HKD 179 million**, and the US and Canada being the largest market, accounting for over 72% of revenue | Continuing Operations Segment | Revenue (HKD thousands) | (Loss)/Profit Before Income Tax (HKD thousands) | | :--- | :--- | :--- | | Own Brand Manufacturing Toys | 179,172 | (7,883) | | Chinese Health Products | 48,801 | (5,515) | | Money Lending Business | 14,263 | 8,177 | | Investment in Financial Instruments | (2,400) | (53,995) | | Consumer Electronic Products | – | (3,300) | | Revenue from Continuing Operations by Geographical Region | H1 2019 (HKD thousands) | H1 2018 (HKD thousands) | | :--- | :--- | :--- | | United States and Canada | 173,035 | 103,889 | | Mainland China and Hong Kong | 63,252 | 149,599 | | Europe | 2,859 | 3,025 | [Business Divestitures and Disposals](index=21&type=section&id=6.%20Loss%20before%20income%20tax) The Group completed the disposal of its OEM Toys business in January 2019 and sold Notton Limited in September 2019, recognizing a gain of **HKD 4.05 million**, with Keytime Global Limited also divested post-period - The **Original Equipment Manufacturing (OEM) Toys** business was disposed of on January 30, 2019, with its H1 2018 performance (revenue of **HKD 46.42 million**, loss of **HKD 20.39 million**) classified as discontinued operations[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) - On September 26, 2019, the Group sold its entire equity interest in subsidiary **Notton Limited** for a total consideration of **HKD 1**, recognizing a disposal gain of approximately **HKD 4.05 million**[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk) - Post-reporting period, the Group sold **Keytime Global Limited**, a subsidiary engaged in consumer electronic product sales, on October 27, 2019[148](index=148&type=chunk)[149](index=149&type=chunk) [Share Capital and Share Repurchases](index=29&type=section&id=17.%20Share%20capital) During the six months ended September 30, 2019, the company repurchased **655.85 million** ordinary shares for **HKD 28.92 million**, all of which were cancelled, aiming to enhance net asset value per share | Month of Repurchase | Number of Ordinary Shares (thousands) | Price Per Share (HKD) | Total Consideration (HKD thousands) | | :--- | :--- | :--- | :--- | | June 2019 | 77,750 | 0.038 - 0.039 | 3,030 | | July 2019 | 578,100 | 0.039 - 0.050 | 25,889 | | **Total** | **655,850** | | **28,919** | - After the repurchases, the total number of issued ordinary shares decreased from **8,521,308 thousand** to **7,865,458 thousand**[133](index=133&type=chunk) [Corporate Governance and Other Information](index=43&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Substantial Shareholders](index=43&type=section&id=Substantial%20Shareholders) As of September 30, 2019, Eternity Finance Group Limited was the largest shareholder with **18.86%** of issued ordinary shares, while Heng Tai Finance Limited held convertible bonds convertible into **1.2 billion** shares | Shareholder Name | Capacity | Number of Ordinary Shares Held | % of Issued Share Capital | | :--- | :--- | :--- | :--- | | Eternity Finance Group Limited | Beneficial Owner | 1,483,728,240 | 18.86% | - **Heng Tai Finance Limited** holds convertible bonds corresponding to **1,200,000,000** relevant shares[227](index=227&type=chunk) [Share Option Scheme](index=44&type=section&id=Share%20Option%20Scheme) At the beginning of the period, **340 million** unexercised share options granted to directors existed, all of which lapsed during the period, resulting in no outstanding options at period-end - As of April 1, 2019, there were **340,000,000** unexercised share options, all held by the company's directors[235](index=235&type=chunk) - During the six months ended September 30, 2019, all **340,000,000** share options lapsed[144](index=144&type=chunk)[235](index=235&type=chunk) [Corporate Governance](index=46&type=section&id=Corporate%20Governance) The company largely complied with the Corporate Governance Code, with one non-executive director's absence from the AGM noted, and board composition changes occurring post-reporting period, including a new Vice Chairman appointment - The company complied with most provisions of the Corporate Governance Code, except for one non-executive director's absence from the Annual General Meeting[251](index=251&type=chunk)[253](index=253&type=chunk) - Board member changes: Mr. Zhang Guowei was appointed Vice Chairman and Executive Director on October 28, 2019; Mr. Diao Yunfeng resigned as Non-executive Director on the same day[245](index=245&type=chunk)[247](index=247&type=chunk)

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].