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佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部 分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 WANJIA GROUP HOLDINGS LIMITED 萬 嘉 集 團 控 股 有 限 公司 （於開曼群島註冊成立之有限公司） 401) （股份代號： 截至二零二三年九月三十日止六個月之 中期業績公佈 萬嘉集團控股有限公司（「本公司」）董事會（「董事會」，及董事會成員，「董事」）欣然 公佈本公司及其附屬公司（統稱「本集團」）截至二零二三年九月三十日止六個月（「本 期間」）之未經審核簡明綜合中期業績，連同二零二二年同期之未經審核比較數字。 本集團之本期間中期業績乃未經審核，惟已獲本公司審核委員會（「審核委員會」）審 閱。 財務摘要 • 93,373,000 90,146,000 本期間收益約為 港元（二零二二年：約 港元），較二零 3.58% ...

Financial Performance - The total revenue for the Group for the year was approximately HK$173.702 million, representing an increase of approximately HK$18.879 million compared to 2022[13]. - The gross profit was approximately HK$56.936 million, an increase of approximately HK$2.702 million compared to 2022[13]. - The profit for the year attributable to the owners of the Company was approximately HK$1.820 million, due to the improvement in the hemodialysis treatment and consultancy service business segment in the PRC[13]. - Total revenue for the financial year ended 31 March 2023 was approximately HK$173.702 million, representing an increase of approximately 12.19% compared to HK$154.823 million in 2022[27]. - Gross profit for the same period was approximately HK$56.936 million, an increase of approximately 4.98% from HK$54.234 million in 2022[27]. - Profit for the year attributable to owners of the Company was approximately HK$1.820 million, a significant recovery from a loss of approximately HK$50.999 million in 2022[27]. - Revenue from the hemodialysis treatment and consultancy service business was approximately HK$121.424 million, representing an increase of 17.16% compared to 2022[31]. - Revenue from the pharmaceutical wholesale and distribution business was approximately HK$52.278 million, a slight increase of approximately 2.14% compared to HK$51.183 million in 2022[32]. Business Strategy and Development - The Group will focus on developing the hemodialysis treatment and consultancy service business through organic growth and acquisitions[16]. - The establishment of new self-operated hemodialysis treatment centres is planned to expand operating scale and market penetration[17]. - The Group believes that the demand for hemodialysis treatment services in the PRC market is still far from being met, indicating significant potential for development[18]. - The Group aims to expand its business scale by studying market potential in other cities and regions in the PRC[103]. - The Group is focusing on establishing new self-operated hemodialysis treatment centers and providing consulting services to hospitals[106]. Financial Position and Ratios - The Group's total cash and cash equivalents as of 31 March 2023 were approximately HK$9.876 million, up from approximately HK$5.768 million in 2022[27]. - The current ratio improved to approximately 2.02 as of 31 March 2023, compared to approximately 1.79 in 2022[65]. - The gearing ratio decreased to approximately 0.13 as of 31 March 2023, down from approximately 0.15 in 2022[66]. - The Group recorded a reversal of allowance for expected credit losses on trade and other receivables of approximately HK$7.499 million for the year ended 31 March 2023[68]. Employee and Workforce Information - As of March 31, 2023, the Group had 202 full-time employees, an increase from 184 in 2022[88]. - Staff costs for the year ended March 31, 2023, amounted to approximately HK$20.221 million, up from approximately HK$19.247 million in 2022, reflecting a year-on-year increase of about 5.06%[89]. - The gender distribution of employees shows 52 males and 150 females, indicating a higher female representation[199]. - The age group distribution reveals 97 employees are below 30 years old, while 5 employees are above 60 years old, reflecting a younger workforce[199]. - The Group's workforce is primarily located in Mainland China, with 192 employees, while 10 are based in Hong Kong[199]. Governance and Compliance - The Group's compliance team is responsible for interpreting and promoting external regulatory requirements to mitigate market risks[79]. - The Group maintains a zero-tolerance approach towards bribery, extortion, fraud, and money laundering[136]. - The Group's governance structure regularly reviews and monitors corporate management policies and practices[136]. - The Board is responsible for overseeing the Group's ESG risk management and setting related targets[129]. - The Group provided anti-corruption training to directors and staff during the Reporting Period to enhance integrity awareness[140]. Environmental, Social, and Governance (ESG) Initiatives - The Group collaborated with a sustainability consultant to identify environmental, social, and governance risks, focusing on climate change and product safety[104]. - The Group is committed to integrating ESG concepts into business development and has identified key sustainability issues such as climate change and product safety[106]. - The Group identified 8 material ESG issues during the Reporting Period, including Wastewater Management, Combatting Climate Change, and Anti-Corruption[158]. - The Group's environmental and social KPIs are disclosed in compliance with the "Comply or Explain" provisions of the Listing Rules[114]. - The Group's whistleblowing policy allows employees to report suspected violations to management[139]. Customer Satisfaction and Quality Control - The Group received no complaints related to products and services during the reporting period, indicating high customer satisfaction[188]. - The Group has established a customer complaint management system to continually improve service quality[187]. - The Group emphasizes drug safety and effectiveness, implementing effective quality control measures throughout procurement, storage, sales, and transportation processes[163]. - The Group's Quality Management Department is responsible for ensuring consistent quality throughout the supply chain and conducts regular internal reviews and risk assessments[179]. - No sold or shipped products were recalled for safety and health reasons during the Reporting Period[180].

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佈的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部 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。 WANJIA GROUP HOLDINGS LIMITED 萬 嘉 集 團 控 股 有 限 公司 （於開曼群島註冊成立之有限公司） 401) （股份代號： 截至二零二三年三月三十一日止年度之 全年業績公佈 財務摘要 本集團截至二零二三年三月三十一日止財政年度之業績概要如下： • 173,702,000 154,823,000 總收益約為 港元（二零二二年：約 港元），較二零二二 12.19% 年增加約 。 • 56,936,000 54,234,000 毛利約為 港元（二零二二年：約 港元），較二零二二年增 4.98% 加約 。 • 4,473,000 47,383,000 營運業務溢利約為 港元（二零二二年：營運業務虧損約 港 元）。 ...

Financial Performance - The company's revenue for the period was approximately HKD 90,146,000, an increase of about 28.27% compared to HKD 70,281,000 in the same period last year, driven by growth in the hemodialysis business[6] - The company reported an operating loss of approximately HKD 2,506,000 for the period, compared to a profit of HKD 414,000 in the previous year[6] - Basic and diluted loss per share was approximately HKD 0.45, compared to earnings of HKD 0.07 per share in the previous year[8] - The company experienced a comprehensive loss of HKD 13,425,000 for the period, compared to a comprehensive income of HKD 4,003,000 in the previous year[8] - The company reported a net cash inflow from operating activities of HKD 13,905,000 for the six months ended September 30, 2022, compared to a net outflow of HKD 9,504,000 for the same period in 2021[23] - The total comprehensive loss for the period was HKD 13,425,000, which included a loss of HKD 2,506,000 and other comprehensive losses of HKD 10,917,000[17] - The group reported a net loss attributable to shareholders of approximately HKD 2,506,000, compared to a profit of approximately HKD 414,000 in the previous year[70] Assets and Liabilities - The total assets of the company as of September 30, 2022, were approximately HKD 179,252,000, down from HKD 191,818,000 as of March 31, 2022[10] - Non-current assets decreased from HKD 110,365,000 to HKD 97,829,000 during the same period[10] - Current liabilities increased to HKD 49,101,000 from HKD 45,468,000, with trade and other payables being HKD 28,844,000[11] - The company's equity attributable to owners decreased from HKD 126,179,000 to HKD 112,757,000[10] - The total liabilities of the group as of September 30, 2022, were HKD 64,580,000, compared to HKD 63,722,000 as of March 31, 2022, showing a slight increase[38] Cash Flow - Total cash and cash equivalents as of September 30, 2022, were approximately HKD 13,204,000, up from HKD 5,768,000 as of March 31, 2022[6] - The cash and cash equivalents increased by HKD 17,542,000 during the six months ended September 30, 2022, compared to a decrease of HKD 16,158,000 in the same period of the previous year[23] - The company had a financing cash inflow of HKD 4,079,000 for the six months ended September 30, 2022, compared to an outflow of HKD 1,452,000 in the previous year[23] - The company’s accumulated losses as of September 30, 2022, stood at HKD 867,246,000, an increase from HKD 864,740,000 on April 1, 2022[17] Revenue Segments - The group operates in two main segments: pharmaceutical wholesale and distribution, and hemodialysis treatment and consulting services, with revenues of HKD 27,560,000 and HKD 62,586,000 respectively for the current period[33] - Revenue from the pharmaceutical wholesale and distribution business was approximately HKD 27,560,000, an increase of about 6.43% from HKD 25,895,000 in the previous year[55] - Revenue from the hemodialysis treatment and consulting services business increased by approximately 41%, reaching HKD 62,586,000 compared to HKD 44,386,000 in the previous year[57] - Revenue from the blood dialysis business was approximately HKD 62,586,000, representing an increase of about HKD 18,200,000 or approximately 41% year-on-year, driven by an increase in the number of patients treated[62] Expenses and Costs - Selling and distribution expenses increased by approximately HKD 4,544,000 or about 33.77% to approximately HKD 17,999,000, primarily due to increased marketing and logistics costs[66] - The financial expenses for the six months ended September 30, 2022, were HKD 938,000, up from HKD 662,000 in the same period of 2021, reflecting increased borrowing costs[40] - The group’s employee costs, including director remuneration, increased to HKD 16,810,000 for the six months ended September 30, 2022, compared to HKD 10,495,000 in the same period of 2021, representing a rise of 60.1%[39] Corporate Governance - The company has maintained a high level of corporate governance and has fully complied with the corporate governance code during the reporting period[105] - The Remuneration Committee, established on September 24, 2013, includes one executive director and three independent non-executive directors, responsible for determining the remuneration packages of all executive directors[107] - The Nomination and Corporate Governance Committee, also established on September 24, 2013, is tasked with reviewing the board's structure and recommending changes as necessary[108] - The Audit Committee, formed on September 24, 2013, oversees the integrity of the company's financial statements and the effectiveness of internal controls[110] Shareholder Information - As of September 30, 2022, Mr. Wang holds a total equity interest of 163,155,611 shares, representing approximately 29.12% of the issued shares[90] - The company’s major shareholder, Weiyang Investment Development Limited, holds 156,862,198 shares, accounting for approximately 28.00% of the total issued shares[95] - The total number of unexercised share options granted to directors and employees amounts to 30,473,892 shares, which is approximately 5.43% of the total issued shares[97] - Employees were granted a total of 14,570,000 share options, representing approximately 2.60% of the total issued shares[97] Operational Changes - The company terminated operations at the blood dialysis treatment center in Xianyou, Fujian, due to the inability of Xianyou Boai Hospital to pay its share of profits, resulting in a legal claim for approximately RMB 3,564,000[84] - The management agreement with Zhuhai Kowloon Hospital was terminated, with the hospital agreeing to refund a deposit of RMB 11,000,000 within three months[87] - The company has received all 31 blood dialysis machines back from Xianyou Boai Hospital, indicating no further operational collaboration[85] - The company is in the process of negotiating an early termination agreement with Xianyou Boai Hospital upon receipt of all outstanding payments[85]

Financial Performance - Total revenue for the year ended 31 March 2022 was approximately HK$154.823 million, an increase of approximately HK$40.737 million compared to 2021[15]. - Gross profit for the year was approximately HK$54.234 million, representing an increase of approximately HK$12.898 million compared to 2021[15]. - Loss attributable to the owners of the Company for the year was approximately HK$50.999 million, primarily due to an impairment loss on goodwill of approximately HK$46.630 million[15]. - Revenue from hemodialysis treatment and consultancy service business was approximately HK$103.640 million, a significant increase of 87.36% compared to 2021[19]. - Revenue from pharmaceutical wholesale and distribution business was approximately HK$51.183 million, representing a decrease of approximately 12.91% compared to 2021[20]. - Total revenue for the year ended March 31, 2022, was approximately HK$154.823 million, representing an increase of approximately 35.71% compared to 2021[34]. - Gross profit for the year was approximately HK$54.234 million, an increase of approximately 31.20% over 2021[34]. - The loss for the year attributable to owners of the Company was approximately HK$50.999 million, primarily due to an impairment loss on goodwill of approximately HK$46.630 million[34]. - The basic and diluted loss per share was approximately HK$9.10 cents, compared to approximately HK$0.81 cents in 2021[34]. - The Group had total cash and cash equivalents of approximately HK$5.768 million as of March 31, 2022, down from approximately HK$25.099 million in 2021[34]. Business Strategy and Development - The Group plans to centralize resources in developing the hemodialysis treatment and consultancy service business through organic growth and acquisitions[21]. - The establishment of new self-operated hemodialysis treatment centers is a key focus for expanding operating scale and market penetration[22]. - The Group believes there is significant unmet demand for hemodialysis treatment services in the PRC market, indicating strong potential for future growth[23]. - The Group plans to focus resources on developing the hemodialysis treatment and consultancy service business through organic growth and acquisitions[25]. - The Group aims to establish new self-operated hemodialysis treatment centers in China to expand operational scale and market penetration[25]. - The Group plans to open six self-operated or joint-venture hemodialysis treatment centers by the end of the fiscal year 2022, with three already opened as of the report date[89]. - The Group's business plan remains unchanged, but delays in opening new centers are being addressed, with alternative locations being considered if delays persist[87]. - Future plans include establishing new self-operated hemodialysis treatment centers and providing consulting services to hospitals[133]. Operational Challenges - Ongoing COVID-19 challenges may continue to create uncertainties in the Group's operating environment, particularly in Guangdong and Fujian Provinces[38]. - Losses were exacerbated by increased costs of sales and services due to COVID-19 restrictions impacting overall profitability in pharmaceutical distribution and hemodialysis services[64]. - The Group's hemodialysis center in Huidong has faced delays in obtaining a specialized license, which is expected to take longer due to the COVID-19 pandemic, with enrollment anticipated in Q2 or Q3 of 2023[72]. - The Huidong Center's operations have been delayed due to the COVID-19 pandemic, with the expected professional license acquisition pushed to Q2 or Q3 of 2023, which was originally anticipated to take 2.5 to 3 years[74][81]. - The Maoming Center's business plan has been significantly delayed due to strong objections from local villagers regarding potential sewage pollution, with an expected opening timeline of 2 to 3 years after objections are resolved[77][87]. - The opening of additional centers in Huizhou and Maoming has been delayed due to unforeseen circumstances, including disputes with partners and the impact of COVID-19[90]. - The combined impact of multiple adverse events in the financial year 2022 has led to the consideration of impairment, reflecting the current value in use of the hemodialysis treatment business[82][83]. Financial Position and Ratios - As of March 31, 2022, the Group had total cash and cash equivalents of approximately HK$5.768 million, a decrease from approximately HK$25.099 million in 2021 due to repayment of shareholder and director loans[94]. - Total current assets increased to approximately HK$81.453 million as of March 31, 2022, compared to approximately HK$66.512 million in 2021, while total current liabilities rose to approximately HK$45.468 million from approximately HK$32.916 million[94]. - The current ratio as of March 31, 2022, was approximately 1.79, down from approximately 2.02 in 2021[94]. - The Group's gearing ratio as of March 31, 2022, was approximately 0.15, an increase from approximately 0.07 in 2021[95]. - The Group had no material capital commitments as of March 31, 2022, compared to approximately HK$1.245 million in 2021[103]. - The Group's financial statements were prepared on a going concern basis, indicating sufficient financial resources for ongoing operations in the foreseeable future[98]. Human Resources - The Group employed 184 full-time employees as of March 31, 2022, an increase from 178 in 2021[117]. - For the year ended 31 March 2022, staff costs amounted to approximately HK$19.247 million, a decrease of 5.7% from HK$20.409 million in 2021[118]. Environmental, Social, and Governance (ESG) - The Group is committed to refining its sustainability governance policies and addressing environmental, social, and governance risks[132]. - The reporting period for the Environmental, Social and Governance Report is from 1 April 2021 to 31 March 2022, covering the Group's pharmaceutical and hemodialysis businesses[139]. - The Group conducted an internal materiality assessment to identify key environmental, social, and governance (ESG) issues relevant to stakeholders during the Reporting Period[146]. - The Group's environmental and social KPIs are disclosed quantitatively, following specific reporting guidance[148]. - The Board oversees the Group's ESG risk management and is responsible for setting and managing ESG-related targets[158]. - The Group employs a strict anti-corruption policy and has established a whistleblowing policy to enhance corporate governance[162]. - During the Reporting Period, the Group did not have any legal cases regarding corrupt practices and was not aware of any material non-compliance with relevant laws[168]. - The Group's pharmaceutical wholesale and distribution business strictly complies with laws and regulations stipulated by the State Food and Drug Administration, including the Medicinal Product Administration Law and the Advertising Law of the People's Republic of China[181]. - During the Reporting Period, 8 significant ESG issues were identified, including Wastewater Management, Combating Climate Change, and Anti-Corruption[177]. - The Group has added a new ESG topic "Combating Climate Change" to address its climate change strategy, reflecting the international community's increasing focus on this issue[177]. - The Group engages stakeholders through various communication channels, including annual general meetings and customer feedback forms, to understand their concerns and expectations[170]. Quality Management and Supply Chain - The Group has established an effective quality management system to protect customers' personal information and ensure the quality of after-sale services[183]. - The Group's operational practices emphasize drug safety and effectiveness, with effective quality control measures in place during procurement, storage, sales, and transportation[181]. - The Group's environmental protection efforts include management of air emissions, energy, and waste, with a focus on compliance and sustainability[179]. - The Group actively participates in community activities and charitable donations to enhance community relations and environmental protection awareness[171]. - The Group engaged a total of 58 medicines and consumables suppliers, all located in the PRC, to ensure supply chain stability[185]. - The Group's storage and transportation facilities comply with national regulations, with systems in place to monitor temperature and humidity, ensuring no products were recalled for safety and health reasons during the Reporting Period[196]. - The Quality Management Department conducts regular internal reviews and risk assessments to maintain stable quality throughout the supply chain[194]. - The Group has established long-term relationships with various large and medium-sized pharmaceutical suppliers to diversify and stabilize the supply chain[185]. - All suppliers are reassessed annually to ensure compliance with the Group's requirements, including environmental policies[190]. - The Group has developed a medicines recycling management system to facilitate systematic recycling when necessary[196]. - No material non-compliance with laws and regulations related to health and safety, advertising, and privacy matters was reported during the Reporting Period[184]. - The Group maintains contact with suppliers through various channels to identify collaboration opportunities and ensure product quality[191]. - The Group's mission is to provide pharmaceutical products to the community and distribute medicine for healthcare institutions[185].

| | | | 公司資料 | 2 | | --- | --- | | 簡明綜合損益及其他全面收益表 | 4 | | 簡明綜合財務狀況表 | 6 | | 簡明綜合權益變動表 | 8 | | 簡明綜合現金流量表 | 10 | | 簡明綜合中期財務報表附註 | 11 | | 管理層討論及分析 | 21 | | 其他資料 | 28 | 萬嘉集團控股有限公司 1 二零二一年╱二零二二年中期報告 公司資料 董事會 董事會現任成員如下： 執行董事 Wang Jia Jun先生 （行政總裁） 非執行董事 蕭致信醫生 獨立非執行董事 黃漢傑先生 劉勇平博士 何敏先生 授權代表 Wang Jia Jun先生 譚子健先生 公司秘書 譚子健先生 審核委員會 黃漢傑先生 （主席） 劉勇平博士 何敏先生 薪酬委員會 黃漢傑先生 （主席） 劉勇平博士 何敏先生 Wang Jia Jun先生 提名及企業管治委員會 Wang Jia Jun先生 （主席） 黃漢傑先生 劉勇平博士 何敏先生 註冊辦事處 Second Floor Century Yard, Cricket Square P.O. Box 902 Grand Cayman KY1- ...

Contents 目 錄 2021 REVIEW 二零二一年回顧 | Corporate Information | 2 | | --- | --- | | 公司資料 | | | Management's Statement | 5 | | 管理層報告 | | | Management Discussion and Analysis | 8 | | 管理層討論及分析 | | | GOVERNANCE REPORT | | | 管治報告 | | | Corporate Governance Report | 17 | | 企業管治報告 | | | Biographical Details of Directors and Senior Management | 34 | | 董事及高級管理人員履歷詳情 | | | Report of the Directors | 38 | | 董事會報告 | | | FINANCIAL STATEMENTS | | | 財務報表 | | | Independent Auditors' Report | 58 | | 獨立核數師報告 | | | Consolidated Sta ...

Wanjia Group Holdings Limited 萬嘉集團控股有限公司 (於開曼群島註冊成立的有限公司) 股份代號: 401 2020/2021 中期報告 | 目 錄 | | | | --- | --- | --- | | 公司資料 | 2 | | | 簡明綜合損益及其他全面收益表 | 4 | | | 簡明綜合財務狀況表 | 6 | | | 簡明綜合權益變動表 | 8 | | | 簡明綜合現金流量表 | 9 | | | 簡明綜合中期財務報表附註 | 10 | | | 管理層討論及分析 | 21 | | | 其他資料 | | 28 | 萬嘉集團控股有限公司 1 二零二零年╱二零二一年中期報告 公司資料 董事會 董事會現任成員如下： 執行董事 Wang Jia Jun先生 （行政總裁） 翁嘉麗女士 獨立非執行董事 黃漢傑先生 劉勇平博士 何敏先生 授權代表 Wang Jia Jun先生 譚子健先生 公司秘書 譚子健先生 審核委員會 黃漢傑先生 （主席） 劉勇平博士 何敏先生 薪酬委員會 黃漢傑先生 （主席） 劉勇平博士 何敏先生 Wang Jia Jun先生 提名及企業管治委員會 Wang Jia Ju ...

Contents 目 錄 2020 REVIEW 二零二零年回顧 | Corporate Information | 2 | | --- | --- | | 公司資料 | | | Management's Statement | 5 | | 管理層報告 | | | Management Discussion and Analysis | 8 | | 管理層討論及分析 | | | GOVERNANCE REPORT | | | 管治報告書 | | | Corporate Governance Report | 17 | | 企業管治報告書 | | | Biographical Details of Directors and Senior Management | 34 | | 董事及高級管理人員履歷詳情 | | | Report of the Directors | 39 | | 董事會報告 | | | FINANCIAL STATEMENTS | | | 財務報表 | | | Independent Auditors' Report | 58 | | 獨立核數師報告 | | | Consolidated S ...

[Company Information](index=3&type=section&id=Company%20Information) Provides fundamental details about the company's registration and operational scope [Financial Summary and Statements](index=4&type=section&id=Financial%20Summary%20and%20Statements) Presents an overview of the company's financial performance and position through key statements [Financial Highlights](index=4&type=section&id=Financial%20Highlights) The Group's revenue increased by 7.95% to HKD 51.44 million, primarily from hemodialysis, with operating loss significantly narrowing and basic loss per share at 1.25 HK cents - Revenue increased by **7.95%** year-on-year to approximately **HKD 51.44 million**, primarily contributed by the hemodialysis treatment and consulting services business[8](index=8&type=chunk) - Operating loss attributable to owners of the Company significantly narrowed from **HKD 57.16 million** in the prior period to **HKD 11.64 million**, mainly due to reduced administrative expenses and no goodwill impairment[8](index=8&type=chunk) Key Financial Indicators | Indicator | September 30, 2019 | March 31, 2019 | Change | | :--- | :--- | :--- | :--- | | Total Cash and Cash Equivalents | HKD 28.07 million | HKD 28.82 million | -2.57% | | Indicator | For the six months ended September 30, 2019 | For the six months ended September 30, 2018 | Change | | :--- | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | 1.25 HK cents | 7.54 HK cents | Loss Narrowed | | Interim Dividend | Not Paid | None | Unchanged | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) During the reporting period, the Group recorded revenue of HKD 51.44 million, a 7.95% year-on-year increase, with gross profit surging 91.98% to HKD 12.20 million, and net loss attributable to owners significantly narrowed to HKD 11.64 million Consolidated Statement of Profit or Loss Summary (thousand HKD) | Item | For the six months ended September 30, 2019 | For the six months ended September 30, 2018 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 51,441 | 47,654 | +7.95% | | Gross Profit | 12,195 | 6,352 | +91.98% | | Operating Loss | (3,554) | (41,086) | Loss Narrowed 91.35% | | Loss Before Tax | (11,329) | (48,639) | Loss Narrowed 76.71% | | Loss for the Period Attributable to Owners of the Company | (11,637) | (57,155) | Loss Narrowed 79.64% | | Total Comprehensive Loss for the Period | (31,239) | (82,645) | Loss Narrowed 62.20% | - Goodwill impairment loss of **HKD 35.46 million** recorded in the same period of 2018 was a primary reason for the larger operating loss that year, with no such impairment in the current period[9](index=9&type=chunk) [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of September 30, 2019, the Group's total assets were HKD 226.83 million, stable compared to March 31, 2019, with the adoption of HKFRS 16 introducing new right-of-use assets and lease liabilities, resulting in a net current liability of HKD 44.42 million and tighter liquidity Consolidated Statement of Financial Position Summary (thousand HKD) | Item | September 30, 2019 | March 31, 2019 | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 154,343 | 128,080 | | Current Assets | 72,490 | 98,509 | | **Total Assets** | **226,833** | **226,589** | | **Equity and Liabilities** | | | | Equity Attributable to Owners of the Company | 96,181 | 84,948 | | Total Equity | 98,046 | 135,095 | | Current Liabilities | 116,905 | 91,494 | | Non-current Liabilities | 11,882 | – | | **Total Equity and Liabilities** | **226,833** | **226,589** | - The Group recorded a net current liability of approximately **HKD 44.42 million** as of September 30, 2019, compared to a net current asset of approximately **HKD 7.02 million** as of March 31, 2019, indicating a decrease in liquidity[13](index=13&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended September 30, 2019, equity attributable to owners increased from HKD 84.95 million to HKD 96.18 million, primarily due to proceeds from ordinary share issuance, partially offset by period loss and exchange differences - During the period, total equity attributable to owners of the Company increased from **HKD 84.95 million** to **HKD 96.18 million**[15](index=15&type=chunk) - Changes in equity were primarily influenced by: - **Increases:** Proceeds from issuance of ordinary shares totaling **HKD 8.40 million** - **Decreases:** Loss for the period of **HKD 11.63 million** and a decrease in exchange reserve of **HKD 19.32 million**[15](index=15&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) During the reporting period, the Group's operating cash flow turned from net outflow to a net inflow of HKD 19.32 million, indicating improved operations, while cash and cash equivalents at period-end were HKD 28.07 million Consolidated Statement of Cash Flows Summary (thousand HKD) | Item | For the six months ended September 30, 2019 | For the six months ended September 30, 2018 | | :--- | :--- | :--- | | Net Cash From / (Used In) Operating Activities | 19,316 | (16,824) | | Net Cash Used In Investing Activities | (24,029) | (45,679) | | Net Cash From Financing Activities | 16,210 | 1,500 | | **Net Increase / (Decrease) in Cash and Cash Equivalents** | **11,497** | **(61,003)** | | Cash and Cash Equivalents at April 1 | 28,816 | 91,922 | | Cash and Cash Equivalents at September 30 | 28,074 | 24,032 | [Notes to the Condensed Consolidated Interim Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) Provides detailed explanations and disclosures supporting the condensed consolidated interim financial statements [Company Information, Basis of Preparation and Accounting Policies](index=11&type=section&id=Company%20Information%2C%20Basis%20of%20Preparation%20and%20Accounting%20Policies) The Company, an investment holding company registered in the Cayman Islands, primarily engages in pharmaceutical wholesale and hemodialysis services in China, with its interim financial statements prepared under HKFRS, notably adopting HKFRS 16 'Leases' for the first time this period - The Group primarily engages in pharmaceutical wholesale and distribution business and hemodialysis treatment and consulting services in China[19](index=19&type=chunk) - The Group adopted **HKFRS 16 'Leases'** for the first time this period, replacing HKAS 17, which resulted in changes to accounting policies, reported amounts, and disclosures[23](index=23&type=chunk)[24](index=24&type=chunk) [Revenue and Segment Information](index=17&type=section&id=Revenue%20and%20Segment%20Information) The Group's operations are divided into pharmaceutical wholesale and hemodialysis services, with hemodialysis revenue significantly increasing and becoming profitable, while pharmaceutical wholesale revenue declined and remained in a loss position Segment Revenue and Results (thousand HKD) | Business Segment | 2019 H1 Revenue | 2018 H1 Revenue | 2019 H1 Segment Result | 2018 H1 Segment Result | | :--- | :--- | :--- | :--- | :--- | | Pharmaceutical Wholesale and Distribution | 39,784 | 43,914 | (2,286) | (3,572) | | Hemodialysis Treatment and Consulting | 11,657 | 3,740 | 2,752 | 1,981 | | **Total** | **51,441** | **47,654** | **466** | **(1,591)** | [Operating Loss, Finance Costs and Tax](index=20&type=section&id=Operating%20Loss%2C%20Finance%20Costs%20and%20Tax) During the period, operating loss components included cost of inventories sold of HKD 39.25 million and staff costs of HKD 6.36 million, with finance costs of HKD 7.78 million entirely from other borrowings and tax expenses of HKD 0.31 million from PRC subsidiaries - Operating loss was net of depreciation of property, plant and equipment of **HKD 3.35 million**, cost of inventories sold of **HKD 39.25 million**, and staff costs of **HKD 6.36 million**[54](index=54&type=chunk) - Finance costs amounted to **HKD 7.78 million**, a slight year-on-year increase, primarily due to interest expenses on other borrowings[54](index=54&type=chunk) - Tax expenses for the period were **HKD 0.31 million**, entirely attributable to PRC corporate income tax[55](index=55&type=chunk) [Loss Per Share](index=21&type=section&id=Loss%20Per%20Share) For the six months ended September 30, 2019, basic loss per share significantly narrowed to 1.25 HK cents from 7.54 HK cents in the prior period, calculated based on a loss attributable to owners of HKD 11.63 million and 934 million weighted average ordinary shares, with no potential dilutive ordinary shares Loss Per Share Calculation | Item | For the six months ended September 30, 2019 | For the six months ended September 30, 2018 | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (thousand HKD) | 11,627 | 48,864 | | Weighted Average Number of Ordinary Shares (shares) | 933,703,560 | 648,405,300 | | **Basic Loss Per Share (HK cents)** | **1.25** | **7.54** | [Key Asset and Liability Items](index=21&type=section&id=Key%20Asset%20and%20Liability%20Items) As of September 30, 2019, goodwill had a carrying amount of HKD 87.22 million, net trade receivables significantly decreased to HKD 9.99 million with a high proportion over 365 days, and total other borrowings were HKD 67.10 million, including a HKD 60 million secured loan - Goodwill carrying amount decreased from **HKD 95.21 million** to **HKD 87.22 million**[58](index=58&type=chunk) - Net trade receivables decreased from **HKD 20.02 million** at the beginning of the period to **HKD 9.99 million**, with receivables over 365 days amounting to **HKD 5.41 million**[59](index=59&type=chunk)[60](index=60&type=chunk) - Total other borrowings amounted to **HKD 67.10 million**, of which **HKD 60 million** is a secured loan with repayment extended to June 28, 2020[67](index=67&type=chunk) [Share Capital, Dividends and Related Party Transactions](index=23&type=section&id=Share%20Capital%2C%20Dividends%20and%20Related%20Party%20Transactions) In August 2019, the Company placed approximately 156 million new shares at HKD 0.054 per share, raising net proceeds of HKD 7.97 million, with no interim dividend proposed, and key related party transactions including key management personnel compensation and rental expenses - On August 23, 2019, the Company entered into a placing agreement to place **155,617,260 shares** at **HKD 0.054 per share**, with net proceeds of approximately **HKD 7.97 million**, and the placing was completed on September 12, 2019[62](index=62&type=chunk) - The Board did not recommend the payment of an interim dividend for the period[69](index=69&type=chunk) - Total remuneration paid to key management personnel during the period was **HKD 1.28 million**[70](index=70&type=chunk) [Management Discussion and Analysis](index=27&type=section&id=Management%20Discussion%20and%20Analysis) Provides management's perspective on the Group's financial performance, operational results, and future outlook [Business Review and Outlook](index=27&type=section&id=Business%20Review%20and%20Outlook) The Group operates in pharmaceutical wholesale and hemodialysis in China, shifting resources towards the high-demand hemodialysis business due to healthcare reform pressures on wholesale, with a future focus on establishing more self-operated hemodialysis centers to expand scale and market share - The Group primarily engages in pharmaceutical wholesale and distribution business ('Wholesale Business') and hemodialysis treatment and consulting services business ('Hemodialysis Business')[75](index=75&type=chunk) - Due to the negative impact of healthcare reform policies on the Wholesale Business, the Group decided to allocate more resources to develop the high-demand Hemodialysis Business and will continue to execute its transformation strategy from wholesale to hemodialysis[79](index=79&type=chunk) - Future Outlook: The Group will primarily focus on establishing multiple new self-operated hemodialysis treatment centers in China to expand its operational scale and gain market share[79](index=79&type=chunk) [Financial Review](index=28&type=section&id=Financial%20Review) During the period, total revenue grew 7.95%, driven by a 211.68% surge in hemodialysis revenue, while gross margin improved to 23.71% due to effective cost control in hemodialysis, and net loss significantly narrowed by 79.64% to HKD 11.64 million despite increased selling expenses Revenue Performance by Business Segment | Business Segment | 2019 H1 Revenue (thousand HKD) | Year-on-year Change | | :--- | :--- | :--- | | Wholesale Business | 39,784 | -9.40% | | Hemodialysis Business | 11,657 | +211.68% | | **Total** | **51,441** | **+7.95%** | - Gross margin significantly improved from **13.33%** in the prior period to **23.71%**, primarily due to effective cost control in the hemodialysis business[83](index=83&type=chunk) - Selling and distribution expenses increased by **331.66%** year-on-year, mainly due to increased marketing and promotional expenses for the hemodialysis business[85](index=85&type=chunk) - Administrative expenses decreased by **22.18%** year-on-year, primarily benefiting from effective cost control in human resource management[86](index=86&type=chunk) - Net loss attributable to owners of the Company significantly decreased by **79.64%**, mainly due to reduced administrative expenses and no goodwill impairment[90](index=90&type=chunk) [Liquidity, Financial Resources and Risk Management](index=30&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Risk%20Management) As of September 30, 2019, the Group held HKD 28.07 million in cash and cash equivalents, with liquidity ratio decreasing to 0.62 and gearing ratio increasing to 40.58%, indicating higher financial leverage and liquidity risk, though foreign exchange risk is considered limited as most transactions are in RMB and HKD Liquidity and Financial Ratios | Indicator | September 30, 2019 | March 31, 2019 | | :--- | :--- | :--- | | Cash and Cash Equivalents | HKD 28.07 million | HKD 28.82 million | | Current Ratio | 0.62 | 1.077 | | Gearing Ratio | 40.58% | 36.71% | - The vast majority of the Group's transactions are denominated in RMB and HKD, and the Directors consider the potential foreign exchange risk to be limited, with no formal hedging policy implemented[97](index=97&type=chunk) [Significant Events and Commitments](index=31&type=section&id=Significant%20Events%20and%20Commitments) During the period, the Group completed a capital reduction for its subsidiary Fuzhou Huihao Pharmaceutical Co., Ltd., pledged all its businesses, properties, and assets as a first floating charge to lenders for other borrowings, and had capital commitments of approximately HKD 13.91 million for leasehold improvements and plant and machinery purchases - The Group completed a capital reduction agreement for its subsidiary, the 'Target Company', which remains a subsidiary of the Company after the reduction[98](index=98&type=chunk) - The Group pledged all its businesses, properties, and assets as a first floating charge to the lenders of other borrowings[100](index=100&type=chunk) Capital Commitments (thousand HKD) | Item | September 30, 2019 | March 31, 2019 | | :--- | :--- | :--- | | Construction contracts for leasehold improvements | 4,115 | 5,732 | | Agreements for purchase of plant and machinery | 9,795 | – | [Other Information](index=33&type=section&id=Other%20Information) Presents additional disclosures regarding corporate governance, shareholdings, and other relevant non-financial details [Directors' and Shareholders' Interests](index=33&type=section&id=Directors%27%20and%20Shareholders%27%20Interests) As of September 30, 2019, Executive Director Mr. Wang Jia Jun was deemed to hold a 1.89% interest in the Company's shares, with several directors holding share options, and major shareholder New Hope International (Hong Kong) Co., Ltd. and its associates collectively holding 5.88% of the shares - Director Mr. Wang Jia Jun held an interest in **17,601,475 shares** through a company owned by his spouse, representing **1.89%** of the total issued shares[104](index=104&type=chunk) - Major shareholder New Hope International (Hong Kong) Co., Ltd. and its ultimate controllers (including Mr. Liu Yonghao) were deemed to hold **54,914,804 shares**, representing **5.88%** of the total issued shares[108](index=108&type=chunk)[110](index=110&type=chunk) [Share Option Scheme](index=37&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme on September 24, 2013, under which 64.84 million share options were granted on October 26, 2018, representing approximately 10% of then-issued shares, with no further options granted during the reporting period ended September 30, 2019 - The Company granted a total of **64,840,000 share options** on October 26, 2018[114](index=114&type=chunk) - No new share options were granted by the Company during the six months ended September 30, 2019[114](index=114&type=chunk) [Corporate Governance](index=38&type=section&id=Corporate%20Governance) The Company is committed to maintaining high corporate governance standards, fully complying with the Corporate Governance Code in Appendix 14 of the Listing Rules during the reporting period, with its Audit, Remuneration, and Nomination and Corporate Governance Committees all comprising independent non-executive directors, and the Audit Committee having reviewed the interim results - For the six months ended September 30, 2019, the Company fully complied with the code provisions of the **Corporate Governance Code**[119](index=119&type=chunk) - The Audit Committee, Remuneration Committee, and Nomination and Corporate Governance Committee are all comprised of three independent non-executive directors: Mr. Wong Hon Kit, Dr. Liu Yongping, and Mr. He Min[121](index=121&type=chunk)[122](index=122&type=chunk)[124](index=124&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated results for the six months ended September 30, 2019[124](index=124&type=chunk)