Financial Performance - The Group recorded revenue of approximately HK$7.1 million for the Financial Period, a decrease of approximately 36% from HK$11.1 million in the Previous Financial Period[10]. - Loss attributable to the owners of the Company decreased to approximately HK$93.45 million, representing a decrease of approximately 15.41% from HK$110.48 million in the Previous Financial Period[11]. - The decrease in revenue was primarily due to the adverse impact of the COVID-19 pandemic on the trading of beauty equipment and products[22]. - The trading revenue from beauty equipment and products was adversely affected by the surge of the COVID-19 pandemic[23]. - Revenue for the six months ended September 30, 2020, was HK$7,152,000, a decrease of 35.5% from HK$11,126,000 in the same period of 2019[113]. - Gross profit for the same period was HK$765,000, down 27.3% from HK$1,052,000 year-over-year[114]. - Loss before tax for the period was HK$94,207,000, an improvement from a loss of HK$111,296,000 in the prior year, representing a 15.4% reduction[115]. - Total comprehensive expense for the period was HK$94,233,000, compared to HK$111,828,000 in the previous year, indicating a 15.8% decrease[118]. - Basic loss per share for the period was HK$6.38, slightly improved from HK$7.55 in the same period last year[123]. - The company reported a loss for the period of HK$110,479,000 for the six months ended September 30, 2020[138]. - The total comprehensive expense for the period was HK$111,011,000, reflecting the company's financial challenges during this timeframe[138]. - For the six months ended 30 September 2020, the consolidated loss was HK$94,207,000, a decrease from HK$111,296,000 in the same period of 2019, representing a 15.5% improvement[157]. Research and Development - The Group is developing a technology for oral insulin administration, currently in Phase III clinical trials, with plans to commercialize by Q4 2022[16]. - The in-process research and development project for the oral insulin product is recorded as an intangible asset with a carrying value of HK$1,373 million[25]. - Patient enrollment for the clinical trial commenced in July 2020, with 23 hospitals invited to participate, and 18 hospitals have accepted the invitation[32]. - The clinical trial for the first group of subjects began in August 2020 and is expected to take approximately 24 weeks, with all 650 subjects anticipated to complete testing by Q4 2021[33]. - The Group expects the product to start generating revenue by the fourth quarter of 2022, following the completion of the clinical trials[34][41]. - The intangible assets include an in-process research and development project for an oral insulin product, with a recoverable amount based on fair value calculations using a discount rate of 22.98% over a 10-year period[181]. - The company believes that no impairment on the in-process R&D should be recognized based on the recoverable amount estimation[184]. - The management's cash flow projections for the in-process R&D are based on key assumptions regarding market development and expected future economic benefits[181]. - The company renewed its collaboration agreement with Tsinghua University for an additional five years, extending to October 2023[181]. Financial Position - As of September 30, 2020, the Group had bank and cash balances of approximately HK$11.9 million, down from approximately HK$22.9 million as of March 31, 2020[48]. - Total borrowings of the Group were approximately HK$921.7 million as of September 30, 2020, compared to approximately HK$835.7 million as of March 31, 2020[49]. - As of September 30, 2020, the Group's current assets to current liabilities ratio was 0.04, down from 0.60 as of March 31, 2020[52]. - The Group's gearing ratio increased to 0.66 as of September 30, 2020, compared to 0.60 as of March 31, 2020, with total liabilities of approximately HK$930.9 million and total assets of approximately HK$1,404.5 million[52]. - Current assets decreased to HK$28,400,000 from HK$42,186,000, reflecting a decline of 32.7%[128]. - Net current liabilities increased significantly to HK$701,661,000 from HK$28,354,000, indicating a substantial rise in financial obligations[131]. - Total assets less current liabilities were HK$674,404,000, down from HK$1,348,338,000, showing a significant reduction in asset value[131]. - As of September 30, 2020, total equity decreased to HK$473,540,000 from HK$567,773,000 as of March 31, 2020, representing a decline of approximately 16.6%[136]. - The equity attributable to owners of the Company was reported at HK$(483,848,000) as of September 30, 2020, compared to HK$(390,373,000) as of March 31, 2020, indicating a worsening position[135]. Corporate Governance - The Company has not established a dividend policy, preferring to determine dividend payments based on financial performance and market conditions[79]. - Following the resignation of an independent non-executive director, the Company currently has two independent non-executive Directors, which is below the minimum requirements under the Listing Rules[80]. - The Audit Committee has reviewed the Group's unaudited interim financial statements for the Financial Period, ensuring compliance with relevant accounting policies and practices[81]. - The company is actively seeking suitable candidates to fill vacancies in its committees to comply with listing rules and codes[82]. - The company has confirmed that no other directors or executives have interests or short positions in the shares of the company as of September 30, 2020[96]. - The company has adopted the Model Code for Securities Transactions by Directors, and all directors confirmed compliance throughout the financial period[86]. - The company is working to ensure compliance with listing rules and corporate governance codes following recent changes in its board composition[82]. Operational Highlights - The Group aims to improve its attractiveness and profitability through cooperation, joint ventures, and investments with suitable partners[17]. - The management performed impairment assessments at the end of each reporting period for the intangible assets[25]. - The Group will cautiously explore trading business opportunities in Hong Kong while reinforcing risk management policies due to the unpredictable impacts of the COVID-19 pandemic and trade conflicts[39][42]. - The management remains optimistic about the long-term recovery of the markets while being cautious about near-term market directions[40][43]. - Total staff costs, including Directors' remuneration, for the Financial Period amounted to approximately HK$4.1 million, an increase from approximately HK$3.9 million in the previous Financial Period[65]. - The Group had 28 full-time employees as of September 30, 2020, a slight decrease from 29 employees as of March 31, 2020[64]. - The company did not have any significant investments or acquisitions during the Financial Period, except for the disposal of shares of Extrawell[54]. - There were no charges on the Group's assets as of September 30, 2020, consistent with the situation as of March 31, 2020[55]. - The company did not purchase, sell, or redeem any of its listed securities during the financial period[111]. - The company did not transfer any amount from retained profits to the statutory reserve during the six months ended September 30, 2020, due to incurred net losses[145]. Segment Information - The Group operates three segments: trading of beauty equipment and products, securities investment, and research and development[153]. - Total segment profit for the reporting segments was a loss of HK$1,166,000, compared to a loss of HK$760,000 in the previous year[156]. - Corporate and other expenses increased to HK$93,041,000 from HK$86,723,000, reflecting an increase of 7.6%[156]. - The effective interest expense on convertible bonds rose to HK$86,913,000 from HK$74,131,000, marking a 17.4% increase[162]. - No dividends were paid, declared, or proposed during the interim period, consistent with the previous year[170]. - The weighted average number of ordinary shares for the purpose of basic and diluted loss per share remained unchanged at 1,464,193 shares[174].

Financial Performance - Revenue decreased by approximately 22% from HK$18,599,000 in the Previous Financial Year to HK$14,580,000 in the Financial Year[16] - Loss attributable to the owners of the Company improved from approximately HK$260,272,000 in the Previous Year to HK$222,462,000 in the Financial Year due to no impairment for the Investment[17] - The Group's revenue for the Financial Year was approximately HK$14,580,000, a decrease of approximately 21.57% compared to HK$18,589,000 in the Previous Financial Year[27] - Loss attributable to the owners of the Company decreased to HK$222,462,000, down HK$37,810,000 from HK$260,272,000 in the Previous Financial Year[27] - Revenue from the trading of beauty equipment and products was approximately HK$14,580,000, reflecting a 21.57% decline due to the adverse impact of the COVID-19 pandemic[27] Business Environment and Strategy - The business environment remains challenging due to ongoing trade conflicts between China and the US and the impact of COVID-19[21] - The Group continues to pursue cooperation, joint ventures, and investments with suitable partners to enhance shareholder returns and sustainable long-term development[22] - The Group's focus is on improving attractiveness and profitability as necessary to enhance shareholder returns[22] - The Company aims to enhance its long-term development and profitability amidst economic uncertainties[21] - The Group's overall strategy includes reviewing and pursuing new partnerships and investments[22] Research and Development - The timetable to commercialize the oral insulin product is adjusted to the fourth quarter of 2022, subject to improvement in the COVID-19 situation[21] - Clinical trials for new technology were disrupted and temporarily suspended due to COVID-19[21] - The Group's in-process research and development project for an oral insulin product has a carrying value of HK$1,373,224,000 recorded as an intangible asset[32] - The expected future economic benefits from the in-process R&D cover a 10-year period from the commercialization of the product[35] - The timeline for obtaining the Certificate of New Medicine and Pharmaceutical Manufacturing Permit has been adjusted to late Q2 2022 and Q4 2022 respectively[59] Financial Position and Management - As of March 31, 2020, the Group had bank and cash balances of approximately HK$22.9 million, an increase from approximately HK$17.1 million as of March 31, 2019[70] - Total borrowings of the Group were approximately HK$835.7 million as of March 31, 2020, up from approximately HK$755.5 million as of March 31, 2019[71] - The ratio of current assets to current liabilities decreased to 0.60 as of March 31, 2020, compared to 1.37 as of March 31, 2019[72] - The Group's gearing ratio increased to 0.60 as of March 31, 2020, from 0.50 as of March 31, 2019[72] - Total staff costs, including Directors' remuneration, amounted to approximately HK$7.9 million for the Financial Year, compared to approximately HK$6.2 million in the previous Financial Year[78] Corporate Governance - The Company has adopted and complied with all corporate governance code provisions during the financial year, except for specific deviations[90] - The role of Chief Executive Officer remains vacant as no suitable candidate has been identified, and the Company is actively seeking a candidate[91] - Non-executive Directors are not appointed for specific terms but are subject to re-election at least once every three years, which the Company believes meets the purpose of the governance code[93] - The Company has not established a dividend policy, considering it more appropriate to determine dividend payments based on financial performance and market conditions[99] - All Directors confirmed full compliance with the Model Code for Securities Transactions throughout the financial year, with no incidents of non-compliance noted[102] Board Composition and Meetings - The Board comprises nine directors, including three independent non-executive directors, ensuring significant diversity in gender, age, and professional experience[166] - The Company has a diversity policy for the Board, considering factors such as gender, age, and professional experience[170] - The Board held a total of 12 meetings during the Financial Year, with all executive directors attending 100% of the meetings[136] - The Audit Committee held 5 meetings during the financial year to review the Group's audited consolidated financial statements[192] - The Remuneration Committee held 1 meeting during the financial year, with all members attending[160] Audit and Compliance - The auditor expressed a qualified opinion related to comparative figures and disclosures for the opening balances as of April 1, 2018[79] - The directors confirmed that the consolidated financial statements were prepared in accordance with statutory requirements and applicable accounting standards[177] - The Company has a corporate governance framework that includes monitoring compliance with legal and regulatory requirements[183] - The Audit Committee assists the Board by providing independent reviews of accounting policies and practices, and monitoring the effectiveness of internal controls[190] - The external auditor, Elite Partners CPA Limited, received an audit service remuneration of HK$1,100,000 for the financial year[182]

Financial Performance - The Group recorded revenue of approximately HK$11.1 million for the Financial Period, an increase of approximately 10.7% from HK$10.1 million in the Previous Financial Period[8]. - Loss attributable to the owners of the Company decreased to approximately HK$110.48 million, representing a decrease of approximately 35.39% from the loss of HK$171.28 million in the Previous Financial Period[8]. - The comparative decrease in loss for the Financial Period was primarily due to less change in fair value of investments in convertible bonds and reduced impairment loss[18]. - Revenue from the trading of beauty equipment and products amounted to approximately HK$11.1 million, representing an increase of approximately 10.7% from HK$10.7 million in the previous financial period[20]. - The Group's total revenue for the financial period was approximately HK$11.1 million, up from approximately HK$10.1 million in the previous financial period, marking an increase of about 10.7%[21]. - Loss attributable to owners decreased to HK$110.48 million, down from HK$171.28 million in the previous financial year, primarily due to fair value changes of convertible bond investments and reduced impairment losses on an associate[21]. - The gross profit for the period was HK$1,052,000, compared to HK$906,000 in the previous year, indicating a gross profit margin improvement[85]. - The loss before tax for the period was HK$111,296,000, a decrease from a loss of HK$173,306,000 in the same period of 2018, reflecting a reduction in losses by approximately 35.7%[85]. - Total comprehensive expense for the period was HK$111,828,000, down from HK$173,969,000 in the prior year, showing a significant improvement[87]. - Basic loss per share for the period was HK(7.55), an improvement from HK(11.70) in the same period of 2018[89]. Business Development - The increase in revenue was primarily due to heightened business activity in the trading of beauty equipment and products segment during the Financial Period[18]. - The Group is developing a technology for oral insulin administration, currently in the research and development stage, with plans to commence Phase III clinical trials[12]. - The Group aims to commercialize the oral insulin product by early 2022[12]. - The Group expects the oral insulin product to commence generating revenue by January 2022[30]. - The Group will allocate additional human resources to the oral insulin project and strengthen the project team to ensure timely completion of the in-process R&D[33]. - The Group's management remains optimistic about long-term market recovery while being cautious about near-term market directions[33]. - The Group's trading segment has shown stable revenues and profit margins, but recent political issues and trade conflicts may impact future performance[33]. - The Group's revenue segments include trading of beauty equipment and products, securities investment, and research and development, indicating a diversified business model[118]. Risk Management - The recent political issues in Hong Kong and trade conflicts between China and the US are expected to impact the trading segment of the business[11]. - The Group will enhance its risk management policy and adopt timely measures to balance risk and return[11]. - The Group will reinforce its risk management policy and proactively adopt measures to balance risks and long-term returns in its trading business[33]. Financial Position - As of September 30, 2019, the Group had bank and cash balances of approximately HK$44.6 million, an increase from approximately HK$17.1 million as of March 31, 2019[37]. - Total borrowings of the Group were approximately HK$822.9 million as of September 30, 2019, up from approximately HK$755.5 million as of March 31, 2019[37]. - The current assets to current liabilities ratio decreased to 0.91 as of September 30, 2019, compared to 1.37 as of March 31, 2019[39]. - The Group's gearing ratio increased to 0.59 as of September 30, 2019, from 0.50 as of March 31, 2019, with total liabilities of approximately HK$901.4 million and total assets of approximately HK$1,584.4 million[39]. - The Group's total liabilities increased to approximately HK$901.4 million as of September 30, 2019, from approximately HK$783.9 million as of March 31, 2019[40]. - The company's total equity as of September 30, 2019, was HK$682,984,000, down from HK$794,812,000 as of March 31, 2019[98]. - Non-current liabilities increased to HK$818,992,000 from HK$751,540,000 as of March 31, 2019, primarily due to an increase in convertible bonds[93]. Corporate Governance - The company has not established a dividend policy, considering it more appropriate to determine dividend payments based on financial performance, operating and capital requirements, and market conditions[56]. - The company has adopted the Model Code for Securities Transactions by Directors and confirmed full compliance by all directors throughout the financial period[57]. - The Audit Committee, consisting of three independent non-executive directors, has reviewed the group's unaudited interim financial statements for the financial period[58]. - The company has complied with the Corporate Governance Code except for deviations in provisions A.2.1, A.4.1, and E.5.1[54]. - The role of chief executive officer remains vacant, and the company is actively seeking a suitable candidate for this position[54]. - Non-executive directors are subject to retirement by rotation and re-election at least once every three years, but were not appointed for specific terms[54]. - The company believes sufficient measures have been taken to represent the long-term interests of the company and its shareholders despite the absence of specified terms for non-executive directors[54]. - The company has established an audit committee with written terms of reference in compliance with the Listing Rules[58]. Shareholder Information - As of September 30, 2019, Tang Rong holds 396,200 shares, representing 0.03% of the issued share capital of the company[67]. - Dr. Mao Yumin holds 1,268,200,000 shares, representing 86.61% of the issued share capital of the Company[72]. - United Gene Holdings Limited owns 653,951,350 shares, accounting for 44.66% of the issued share capital[72]. - Chau Yiu Ting holds 302,600,000 shares, representing 20.67% of the issued share capital[72]. - The Company has not disclosed any other relevant interests or short positions of 5% or more in the issued share capital as of September 30, 2019[75]. Convertible Bonds - The Company has a convertible bond with an aggregate principal amount of HK$607,600,000, which can lead to the issuance of derivative shares[75]. - The Company issued Convertible Bonds III with an aggregate principal amount of HK$715,000,000 on July 28, 2014, to acquire a 51% equity interest in Smart Ascent, with a coupon rate of 3.5% per annum[182]. - The fair value of the liability component of Convertible Bonds III was HK$233,547,000 as of 28 July 2014, determined using the discounted cash flow approach[15]. - The conversion price for Convertible Bonds II is set at HK$0.40 per share, allowing bondholders to convert their bonds into shares within 10 years from the date of issue[171]. - The expected volatility for the Convertible Bonds II was recorded at 84.57% on April 24, 2014, decreasing to 79.49% by April 30, 2015, indicating a trend of reduced price fluctuations[173]. - The interest charge for Convertible Bonds II was HK$14,950,000 for the six months ended September 30, 2019, compared to HK$11,835,000 for the same period in 2018, reflecting an increase of approximately 26.5%[168]. Research and Development - The in-process research and development project for an oral insulin product has a carrying value of HK$1,373 million, with management performing impairment assessments at the end of each reporting period[26]. - The intangible assets include an in-process research and development project for an oral insulin product, with expected future economic benefits covering a 10-year period and a discount rate of 23.73% used for fair value calculations[153]. - The patents related to the oral insulin product are set to expire on 20 April 2021 and 12 April 2022, with Fosse Bio having exclusive rights for commercialization under a renewed collaboration arrangement with Tsinghua University until October 2023[153]. - The recoverable amount for the in-process R&D is estimated using a cash flow forecast over a 10-year period with a discount rate of 23.73%[156]. - The company believes that any reasonable changes in assumptions used for cash flow forecasting will not lead to an impairment of the in-process R&D[156].

Financial Performance - For the financial year ended March 31, 2019, the Group recorded revenue of approximately HK$18,589,000, an increase of approximately 17.57% from HK$15,811,000 in the previous financial year[10] - The loss attributable to the owners of the Company for the financial year was approximately HK$260,272,000, representing an increase of approximately 12.7% from the loss of HK$231,048,000 in the previous financial year[10] - The Group's revenue for the Financial Year was approximately HK$18,589,000, representing an increase of approximately 17.57% compared to HK$15,811,000 in the Previous Financial Year[15] - Loss attributable to the owners of the Company increased to HK$260,272,000, up HK$29,224,000 from HK$231,048,000 in the Previous Financial Year, primarily due to increased interest expenses[15] - Total comprehensive expense for the year was HK$273,527,000, up from HK$231,500,000 in 2018, representing an increase of 18.1%[190] - The company reported a loss for the year of HK$260,272,000, compared to a loss of HK$231,048,000 in the previous year, indicating a worsening of approximately 12.7%[197] Business Development - The Group is continuing to develop its trading of beauty equipment and products business, allocating more resources to boost this segment despite keen market competition[13] - The Group is engaged in the development of a technology for oral insulin administration, currently in Phase III clinical trials, with plans to commercialize the product in early 2022[13] - The Group expects the Product to start generating revenue around January 2022[34] - The Group commenced Part B of phase III clinical trials for the Product, with revenue generation timelines adjusted to mid-2021 and January 2022[36] - The Group remains open to fundraising and partnership activities to further develop its portfolio and R&D efforts[24] Financial Position - The Group's bank and cash balances as of 31 March 2019 were approximately HK$17.1 million, down from approximately HK$20.2 million as of 31 March 2018[39] - Total borrowings of the Group as of 31 March 2019 were approximately HK$755.5 million, an increase from approximately HK$628.1 million as of 31 March 2018[39] - The current assets to current liabilities ratio was 1.37 as of 31 March 2019, compared to 1.92 as of 31 March 2018[39] - The Group's gearing ratio as of 31 March 2019 was 0.50, up from 0.38 as of 31 March 2018, with total liabilities of approximately HK$783.9 million and total assets of approximately HK$1,578.8 million[39] Research and Development - The in-process research and development project for an oral insulin product has a carrying value of HK$1,373,224,000 recorded as an intangible asset[24] - The expected future economic benefits from the in-process R&D cover a 10-year period from the commercialization of the product[26] - Significant judgments and assumptions are necessary for management in assessing the recoverable amounts of intangible assets, including revenue growth rates and discount rates[173] - Management engaged an independent qualified professional valuer to prepare a valuation report for the assessment of the recoverable amount of intangible assets[176] Corporate Governance - The role of chief executive officer remains vacant, with the company actively seeking a suitable candidate[43] - Non-executive Directors are subject to retirement by rotation and re-election at least once every three years, deviating from the Code provision A.4.1[43] - The company has adopted and complied with all code provisions set out in Appendix 14 to the Listing Rules during the financial year, except for the deviations discussed[43] - The board composition includes 3 executive directors, 3 non-executive directors, and 3 independent non-executive directors, ensuring a balance to safeguard shareholders' interests[66] - The Company has deviated from Code provision A.4.1, as non-executive directors are not appointed for a specific term but are subject to retirement by rotation and re-election at least once every three years[79] Audit and Compliance - The Group's external auditor, Elite Partners CPA Limited, received HK$1,100,000 for audit services during the financial year[101] - The Audit Committee held 5 meetings during the financial year, with all members attending at least 4 out of 5 meetings[107] - The Board has reviewed the internal control procedures and considers the risk management and internal control systems to be adequate and effective[109] - The directors confirm that they are not aware of any material uncertainties that may cast significant doubts on the Company's ability to continue as a going concern[98] Shareholder Information - The Group's financial results for the year ended March 31, 2019, are detailed in the consolidated statement of profit and loss, with no final dividend recommended for the financial year[125] - The Group reported no distributable reserves as of March 31, 2019, compared to Nil on March 31, 2018[125] - The interests of directors and substantial shareholders are recorded under the Securities and Futures Ordinance[139] Market and Strategic Initiatives - The company is actively involved in market expansion and product development in the pharmaceutical and biotechnology sectors[48] - The company is exploring strategic acquisitions to bolster its market position, with a budget of $100 million allocated for potential deals[118] - A new marketing strategy is set to increase brand awareness, targeting a 30% growth in customer engagement[119] Environmental and Social Responsibility - The Group emphasizes environmental protection and sustainable development, implementing several measures to promote environmental management[158] - The Company will publish a separate Environmental, Social and Governance Report within three months after the annual report[158]