Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 23,768,000, a decrease of 4.9% compared to HKD 24,984,000 in the same period of 2022[3] - Gross profit for the same period was HKD 14,285,000, down 14.2% from HKD 16,649,000 year-on-year[3] - Operating loss narrowed to HKD 8,914,000 from HKD 20,013,000 in the previous year, indicating improved operational efficiency[3] - The net loss for the period was HKD 10,883,000, significantly reduced from HKD 22,200,000 in the prior year[4] - Basic and diluted loss per share improved to HKD 1.64 from HKD 4.64 year-on-year[3] - The net loss for the six months ended June 30, 2023, is HKD 6,570,000, compared to a loss of HKD 11,632,000 for the same period in 2022[14] - The company reported a total comprehensive income of HKD (6,705,000) for the six months ended June 30, 2023[12] - The reported segment loss for the six months was HKD 10,883,000, an improvement from a loss of HKD 22,200,000 in the previous year[27] - The company reported a net loss attributable to equity holders of approximately HKD 6,600,000 for the period, a significant decrease from a net loss of approximately HKD 18,500,000 in the same period last year, primarily due to a turnaround from unrealized losses to unrealized gains in securities[67] Assets and Liabilities - Total assets as of June 30, 2023, were HKD 275,665,000, a decrease from HKD 289,312,000 at the end of 2022[6] - Cash and cash equivalents decreased to HKD 6,166,000 from HKD 26,496,000 at the end of 2022, reflecting liquidity challenges[6] - Non-current assets decreased to HKD 125,795,000 from HKD 143,718,000, primarily due to depreciation and amortization[6] - The company’s total liabilities as of June 30, 2023, are not explicitly stated but are implied to have increased due to the reported losses and cash outflows[12] - Total reported segment assets as of June 30, 2023, were HKD 319,374,000, a decrease from HKD 333,529,000 at the end of 2022[29] - Total reported segment liabilities decreased to HKD 86,688,000 from HKD 91,360,000 at the end of 2022[29] - The company’s accounts payable decreased to HKD 39,535,000 as of June 30, 2023, from HKD 40,005,000 as of December 31, 2022, showing a slight reduction in liabilities[58] Cash Flow and Financing - The net cash used in operating activities for the six months ended June 30, 2023, is HKD 16,127,000, compared to HKD 11,632,000 in the previous year[14] - The company’s cash flow from operating activities included interest received of HKD 2,389,000, down from HKD 6,883,000 in the previous year[14] - The financing activities resulted in a cash outflow of HKD 4,203,000 for lease liabilities during the six months ended June 30, 2023[16] - As of June 30, 2023, the company had no bank borrowings and reported a net cash position of HKD 6,200,000, resulting in a debt-to-asset ratio of zero[89] Revenue Segments - For the six months ended June 30, 2023, the total reported segment revenue was HKD 23,782,000, a decrease of 4.9% compared to HKD 24,994,000 in 2022[27] - Medical service revenue for the same period was HKD 15,574,000, down 17.8% from HKD 18,785,000 in 2022[30] - Revenue from Shanghai Hospital for the period was approximately HKD 14,600,000, compared to HKD 12,900,000 in the same period last year, while the net loss was approximately HKD 9,300,000, slightly improved from HKD 9,700,000[68] Cost Management - The company is focusing on cost control, with administrative expenses reduced to HKD 23,103,000 from HKD 29,400,000 year-on-year[3] - The total employee cost for the six months ended June 30, 2023, was HKD 11,300,000, with a total of 90 employees[92] Credit and Risk Management - The company has made significant provisions for expected credit losses, with a total of HKD 67,211,000 as of June 30, 2023, reflecting a cautious approach to credit risk management[51] - The company has a policy of assessing the recoverability of loans on an individual basis, which includes evaluating the credit quality of borrowers[51][52] - The company will adopt more cautious credit assessments and procedures in its lending and related businesses due to the ongoing global economic challenges[74] Shareholder Information - As of June 30, 2023, major shareholders hold significant stakes in the company, with Dong Jufeng and Jia Tianjiang each owning approximately 66.69% of the issued share capital, totaling 266,069,294 shares[96] - Tianyuan Manganese Industry Co., Ltd. holds a beneficial interest of 62.54%, with 249,539,294 shares, and an additional 4.14% represented by 16,530,000 shares under a mortgage interest[96] - The company confirms that there are no other individuals, apart from the directors and senior management, holding 5% or more of the shares as of June 30, 2023[98] Corporate Governance - The board of directors guarantees the authenticity, accuracy, and completeness of the mid-year financial report for 2023, ensuring no misleading statements or significant omissions[98] - The audit committee, composed of three independent non-executive directors, reviewed the interim results and financial information without objection[76] - The company is actively seeking suitable candidates to fulfill the role of executive director to comply with corporate governance codes[79] - The company has adopted the "Standard Code for Securities Transactions by Directors" and confirmed compliance throughout the period[84]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，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告全部或任何部分內容而產生或因 依賴該等內容而引致之任何損失承擔任何責任。 CHINA TIAN YUAN HEALTHCARE GROUP LIMITED 中 國 天 元 醫 療 集 團 有 限 公 司 （於開曼群島註冊成立之有限公司） 557 （股份代號： ） 二零二三年中期業績－公告 截至二零二三年六月三十日止六個月之未經審核綜合業績 業績 中國天元醫療集團有限公司（「本公司」）董事（「董事」）會（「董事會」）公告本公司、 其附屬公司及聯營公司（「本集團」）截至二零二三年六月三十日止六個月（「期 內」）之未經審核綜合業績，連同比較數字列載如下。 ...

Financial Performance - The company reported a net loss attributable to equity holders of approximately HKD 29 million for the fiscal year 2022, compared to a net loss of approximately HKD 16.9 million in the previous year, primarily due to the negative impact of COVID-19 on revenue from the Shanghai hospital[6]. - The investment holding segment recorded a total realized and unrealized gain of approximately HKD 36.1 million in fiscal year 2022, a significant increase from approximately HKD 1.7 million in the previous year, resulting in a profit before tax of approximately HKD 18.2 million[7]. - Revenue from the Shanghai hospital decreased significantly to approximately HKD 31.1 million in fiscal year 2022, down from HKD 66.7 million in fiscal year 2021, due to lockdowns and restrictions in Shanghai[8]. - The company’s basic loss per share for fiscal year 2022 was HKD 0.0728, compared to HKD 0.0422 in the previous year[11]. - The company reported a total revenue of HKD 54.2 million for fiscal year 2022, a decrease from HKD 94.6 million in fiscal year 2021[18]. - The company recorded a net loss of approximately HKD 40.3 million for the fiscal year 2022, compared to a net loss of approximately HKD 19.1 million in the fiscal year 2021, primarily due to the negative impact of COVID-19 on revenue from the Shanghai hospital[22]. - The investment holding segment reported a total net gain of approximately HKD 36.1 million for the fiscal year 2022, significantly up from approximately HKD 1.7 million in the fiscal year 2021[23]. - Revenue from the Shanghai hospital was approximately HKD 31.1 million in fiscal year 2022, down from approximately HKD 66.7 million in fiscal year 2021, with a net loss of approximately HKD 19 million[24]. - The company confirmed third-party loan interest income of HKD 16.5 million for fiscal year 2022, slightly down from HKD 16.8 million in fiscal year 2021[27]. Business Strategy and Expansion - The company plans to continue expanding its core business in cosmetic and medical services in China and other Asian markets, anticipating growth in consumer spending in the medical beauty industry[13]. - The company is actively seeking new business opportunities to diversify and increase revenue sources[16]. - The company aims to explore various short-term investment plans to improve investment returns using its cash reserves[15]. - The group aims to further develop and expand its core business in the medical and cosmetic surgery sectors in China and other Asian markets, anticipating growth in consumer spending in the Chinese medical beauty industry[37]. - The group will continue its lending and related businesses, adopting more cautious credit assessments and procedures in light of global economic disruptions and trade disputes[38]. Corporate Governance - The board of directors held 24 meetings in 2022, with attendance rates for executive directors ranging from 21/24 to 24/24[48]. - The company has a clear division of responsibilities between the chairman and the CEO, with the current chairman and CEO being the same person since November 4, 2022[50]. - Non-executive and independent non-executive directors serve a term of two years and must stand for re-election at the annual general meeting[53]. - The company ensures that all directors receive appropriate training and are provided with comprehensive onboarding materials upon their appointment[49]. - The board is actively seeking suitable candidates to share the responsibilities of the chairman and CEO to comply with governance codes[51]. - The company emphasizes the importance of effective communication with shareholders and encourages open discussions among directors[52]. - The board is responsible for approving strategic plans, significant operational matters, investments, and loans, while also reviewing financial performance[47]. - Independent non-executive directors have attended various committee meetings, with attendance rates for some reaching 100%[48]. - The company has established a culture of ethical and responsible conduct, which is reinforced throughout the organization[47]. - The chairman plays a crucial role in ensuring that all directors are adequately informed and that board meetings are effective[52]. Risk Management and Internal Control - The company has established a robust risk management and internal control system aimed at achieving strategic goals and protecting shareholder investments[70]. - The risk management framework includes a three-tier structure involving the board, senior management, and business function management[71]. - The company conducts annual risk assessments to identify potential strategic, operational, financial, and compliance risks[75]. - An independent internal audit function regularly reviews the effectiveness of the company's risk management and internal control measures[77]. - The board is satisfied with the effectiveness and adequacy of the current risk management and internal control systems[78]. Environmental, Social, and Governance (ESG) Initiatives - The company has implemented a top-down management approach for ESG management and established effective ESG management systems and processes[147]. - The company reported a total greenhouse gas emission of 235,831.65 kg in 2022, a slight decrease from 240,598.67 kg in 2021[162]. - The company generated 3.42 grams of sulfur dioxide (SOx) emissions in 2022, an increase from 1.85 grams in 2021[160]. - The nitrogen oxides (NOx) emissions rose to 289.09 grams in 2022, compared to 62 grams in 2021[160]. - The company utilized 235,213 kg of carbon dioxide (CO2) emissions from purchased electricity in 2022, down from 240,258 kg in 2021[162]. - The company engaged in various stakeholder communications to enhance its ESG strategies and identify improvement opportunities[153]. - The company emphasized the importance of stakeholder feedback in shaping its sustainable development initiatives[155]. - The company has committed to reducing emissions through energy efficiency and the use of cleaner energy sources[161]. - The company has implemented policies to manage waste and emissions in compliance with relevant environmental regulations[156]. - The company identified occupational health and safety, product quality management, and operational compliance as key ESG focus areas during the reporting period[155]. Employee Management and Turnover - The overall employee turnover rate for the group in 2022 was 78%, a significant increase from 11% in 2021[196]. - The turnover rate for male employees in 2022 was 60%, compared to 8% in 2021, while for female employees it was 87%, up from 12%[196]. - The turnover rate for employees aged 18-25 reached 150% in 2022, compared to 13% in 2021[196]. - The group has a total of 111 employees as of December 31, 2022, down from 112 in 2021[183]. - The group has implemented a comprehensive learning and development plan to enhance employee skills and retention[182]. - The group emphasizes compliance with environmental regulations and has taken steps to ensure supply chain stability amid climate change risks[180]. - The group encourages the use of natural and pollution-free materials in beauty products to promote environmental sustainability[180]. - The group has expanded its supplier network to mitigate the impact of extreme weather on logistics and quality[180]. Health and Safety Measures - The company emphasizes the health and safety of both customers and employees, implementing various healthcare plans including regular preventive health check-ups and medical insurance[198]. - The company adheres strictly to relevant laws and regulations regarding occupational health and safety, particularly in the medical beauty sector, ensuring compliance with multiple national standards[199]. - To mitigate the risk of infection during surgeries, the company mandates medical staff to wear protective gear, including impermeable gloves and masks, and conducts monthly training on infection control[199]. - The company has established multiple infection prevention measures in response to COVID-19, including regular nucleic acid testing for employees and disinfection facilities in public areas[200]. - The vaccination completion rate for medical staff reached 100% for the third dose during the year, highlighting the company's commitment to employee health[200].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，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告全部或任何部分內容所產生或因 倚賴該等內容而引致之任何損失承擔任何責任。 CHINA TIAN YUAN HEALTHCARE GROUP LIMITED 中 國 天 元 醫 療 集 團 有 限 公 司 （於開曼群島註冊成立之有限公司） 557 （股份代號： ） 二零二二年末期業績－公佈 截至二零二二年十二月三十一日止年度之 經審核綜合業績 中國天元醫療集團有限公司（「本公司」）董事（「董事」）會（「董事會」）公佈本公司 及其附屬公司、合營安排及聯營公司（「本集團」）截至二零二二年十二月三十一 日止年度（「二零二二年財年」）之綜合業績，連同比較數字列載如下。 ...

Financial Performance - For the six months ended June 30, 2022, the company reported a revenue of HKD 24,984,000, a decrease of 48.5% compared to HKD 48,439,000 in the same period of 2021[4] - The gross profit for the same period was HKD 16,649,000, resulting in a gross margin of approximately 66.7%[4] - The company incurred a loss before tax of HKD 22,200,000, compared to a loss of HKD 6,411,000 in the prior year, indicating a significant increase in losses[4] - The basic and diluted loss per share for the period was HKD 4.64, compared to HKD 1.53 in the previous year, reflecting a worsening financial position[4] - Total comprehensive loss for the period was HKD 20,719,000, compared to HKD 3,324,000 in the same period last year, highlighting a substantial increase in overall losses[6] - The net loss for the six months ended June 30, 2022, was HKD 18,538,000, compared to a net loss of HKD 6,137,000 for the same period in 2021, representing an increase in losses of approximately 203%[58] - The company reported a net loss attributable to equity holders of approximately HKD 18,500,000 for the six months ended June 30, 2022, compared to a net loss of approximately HKD 6,100,000 for the same period last year, indicating a significant increase in losses[90] Assets and Liabilities - As of June 30, 2022, total assets amounted to HKD 311,195,000, down from HKD 340,042,000 at the end of 2021[10] - The group's total assets as of June 30, 2022, were HKD 345,737,000, a decrease from HKD 376,383,000 as of December 31, 2021, reflecting a reduction of approximately 8%[42] - Total liabilities decreased to HKD 82,421,000 as of June 30, 2022, from HKD 92,348,000 as of December 31, 2021, indicating a decline of around 11%[44] - The company's equity attributable to owners decreased to HKD 237,907,000 from HKD 256,247,000, indicating a decline in shareholder value[13] Cash Flow and Liquidity - The company's cash and cash equivalents decreased to HKD 51,190,000 from HKD 65,699,000, indicating a decline in liquidity[10] - For the six months ended June 30, 2022, the net cash used in operating activities was HKD (11,632) thousand, compared to HKD 26,533 thousand for the same period in 2021, indicating a significant decline in cash flow from operations[21] - The total cash and cash equivalents decreased by HKD 14,509 thousand, with cash and cash equivalents at the beginning of the period being HKD 65,699 thousand, compared to HKD 58,178 thousand at the same time last year[24] - The cash and cash equivalents as of June 30, 2022, were HKD 51,190 thousand, down from HKD 81,220 thousand in 2021, reflecting a decrease of approximately 37% year-over-year[25] - Cash used in investing activities was HKD (758) thousand for the six months ended June 30, 2022, compared to HKD (1,408) thousand in the same period of 2021, showing a reduction in investment outflows[21] - Cash used in financing activities was HKD (2,119) thousand, slightly increasing from HKD (2,083) thousand in the previous year, indicating stable financing cash flows[21] Segment Performance - The company operates in four reportable segments: Investment Holding, Medical, Lending and Related Services, and Hotel, with each segment contributing differently to overall performance[32][34] - The management assesses the performance of each segment based on operating profit, which includes revenues and expenses directly attributable to each segment[37] - Revenue from medical services, including royalties, was HKD 5,855,000 for the six months ended June 30, 2022, down from HKD 36,815,000 in 2021, a decline of about 84%[44] - The medical division generated revenue of approximately HKD 12,900,000 during the period, down from HKD 36,800,000 in the same period last year, resulting in a net loss of approximately HKD 9,700,000[91] - The investment holding division recorded realized and unrealized valuation losses of approximately HKD 3,000,000, compared to HKD 800,000 in the same period last year, leading to a pre-tax loss of approximately HKD 19,100,000[94] Foreign Exchange and Interest Income - The company reported a foreign exchange gain of HKD 1,113,000 for the period, compared to a gain of HKD 3,074,000 in the previous year, suggesting fluctuations in currency impact[6] - The group reported a net foreign exchange loss of HKD 3,497,000 for the six months ended June 30, 2022, compared to a gain of HKD 536,000 in 2021[50] - Interest income from third-party loans was HKD 6,199,000 for the six months ended June 30, 2022, down from HKD 8,427,000 in 2021, a decrease of about 26%[46] - The company confirmed third-party loan interest income of HKD 6,200,000 for the period, down from HKD 8,400,000 in the same period last year[92] Administrative and Employee Costs - The group incurred administrative expenses primarily related to holding investments and medical services, which included employee costs totaling HKD 13,686,000 for the six months ended June 30, 2022, down from HKD 22,099,000 in 2021, a reduction of about 38%[51] - The total employee cost for the six months ended June 30, 2022, was HKD 13,700,000, with a total of 112 employees[115] Corporate Governance and Compliance - The company adopted the "Standard Code for Securities Transactions by Directors" and confirmed compliance throughout the period[107] - The company is committed to transparency in accordance with the Securities and Futures Ordinance[120] - The board of directors is responsible for the company's strategic decisions and oversight[120] - The company continues to comply with regulatory requirements regarding shareholding disclosures[120] - The company emphasizes the importance of maintaining accurate records as per the Securities and Futures Ordinance[120] - The company is focused on corporate governance and accountability to its shareholders[120] - The company aims to uphold its reputation through adherence to legal and regulatory standards[120] - The company is dedicated to fostering trust and integrity in its financial reporting practices[120] Other Notable Points - The company declared no interim dividend for the six months ended June 30, 2022, consistent with the previous year[60] - The company did not recognize deferred tax assets for tax losses of approximately HKD 172,900,000 as of June 30, 2022, due to the low likelihood of future taxable profits[55] - The company has not adopted any new accounting standards or interpretations that would have a significant impact on the interim financial statements for the current accounting period[31] - The company has initiated bankruptcy proceedings against a guarantor for a loan that has defaulted, with a court hearing scheduled for April 19, 2022[69] - The company provided loans to third parties amounting to HKD 178,030,000 as of June 30, 2022, with an expected credit loss provision of HKD 66,377,000[66] - The company’s policy includes individual assessments for the impairment of receivables, considering credit quality changes from the initial loan date to the reporting date[67] - The company did not report any significant contingent liabilities as of June 30, 2022[88] - The group had no pledged assets as of June 30, 2022[113] - The major shareholders included Dong Jufeng with a 66.69% stake and Tianyuan Manganese Industry Co., Ltd. with a 62.54% stake[119] - The group is exposed to foreign currency risks primarily in GBP, SGD, PHP, RMB, KRW, and USD, but had no unsettled foreign exchange contracts as of the reporting date[114] - No individuals other than the company's directors and senior executives held any interests in the company's shares as of June 30, 2022[120] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the period[109] - There were no purchases, sales, or redemptions of the company's listed securities during the period[108]

Financial Performance - The company reported a net loss attributable to equity holders of approximately HKD 16.9 million for the fiscal year 2021, a decrease from a net loss of approximately HKD 65.1 million in the previous year[5]. - The company reported a revenue of HKD 94,588,000 for the fiscal year 2021, a significant increase of 67.6% compared to HKD 56,340,000 in 2020[12]. - The net loss for the fiscal year 2021 was approximately HKD 19,063,000, a reduction from a net loss of HKD 110,035,000 in 2020, indicating an improvement in financial performance[15]. - The basic loss per share for the fiscal year 2021 was HKD 4.22, compared to HKD 16.31 in the previous year, reflecting a decrease in losses per share[12]. - The total comprehensive loss of HKD 13,336,000 for the year was significantly lower than HKD 109,282,000 in 2020[187]. - The gross profit for 2021 was HKD 71,307,000, up from HKD 37,574,000 in 2020, indicating a significant improvement in profitability[185]. Revenue Sources - Patent fee income from the subsidiary, Puaip, was approximately HKD 11.1 million in fiscal year 2021, compared to HKD 2.7 million in the previous year[5]. - The Shanghai hospital generated revenue of approximately HKD 66.7 million and a net loss of approximately HKD 14.5 million in fiscal year 2021[5]. - The medical division contributed patent royalty income of approximately HKD 11,100,000 in 2021, a substantial increase from HKD 2,700,000 in 2020[15]. - The Shanghai hospital recorded revenue of HKD 66,700,000 in 2021, compared to HKD 36,200,000 in the previous year, indicating a growth of 84.5%[15]. Assets and Liabilities - The total assets of the company decreased to HKD 376,399,000 in 2021 from HKD 381,296,000 in 2020, showing a decline of 0.2%[14]. - The company's net assets stood at HKD 284,051,000 in 2021, down from HKD 297,387,000 in 2020, representing a decrease of 4.5%[14]. - The total liabilities included lease liabilities amounting to HKD (55,991,000), reflecting the company's financial obligations[198]. - The company's total assets less current liabilities amounted to HKD 340,042,000, compared to HKD 349,431,000 in 2020, indicating a slight decrease in net asset position[190]. Investment and Growth Strategy - The company plans to continue developing its core business in the medical and cosmetic surgery sectors in China and other Asian markets[8]. - Future growth in the Chinese medical beauty industry is anticipated, supported by the company's management experience and investment in the Shanghai hospital[8]. - The company intends to monitor and adjust its investment portfolio in response to economic conditions and will explore various short-term investment plans[11]. - The group plans to explore different short-term investment programs to improve investment returns using cash reserves in various currencies[22]. Risk Management and Governance - The company has established a robust risk management and internal control system to achieve strategic goals and protect shareholder investments[57]. - The risk management framework includes a three-tier structure involving the board, audit committee, and senior management to enhance risk management across the organization[58]. - The board of directors is responsible for reviewing the effectiveness of the risk management and internal control systems annually, covering all significant aspects including strategic, financial, operational, and compliance monitoring[69]. - The company has implemented a three-year audit plan based on risk assessment results, prioritizing identified risks for annual audit projects[64]. Corporate Governance - The board of directors consists of seven members, including two executive directors, two non-executive directors, and three independent non-executive directors[31]. - The company regularly reviews its corporate governance practices to ensure compliance with the corporate governance code[29]. - The chairman and CEO roles are clearly defined, with the chairman responsible for board operations and the CEO managing daily business operations[36]. - The company has adopted a board diversity policy to enhance governance standards and board effectiveness through diverse perspectives[42]. Employee and Operational Insights - The group's total employee costs increased to HKD 40,200,000 in fiscal year 2021 from HKD 29,100,000 in fiscal year 2020, primarily due to full-year employee costs from Shanghai Hospital[17]. - The group has implemented various training programs to enhance employee skills and knowledge, crucial for maintaining service quality[17]. - The company has committed to environmental sustainability initiatives, including effective resource utilization and waste reduction measures[20]. Shareholder Information - The company has a dividend policy that is subject to various factors including overall business conditions, cash flow, financial performance, and market conditions[76]. - No dividends were recommended for the fiscal year ending December 31, 2021, consistent with the previous year[83]. - The largest customer accounted for 12% of total sales, while the top five customers combined represented 23% of total sales[82]. - The largest supplier accounted for 10% of total purchases, and the top five suppliers combined represented 24% of total purchases[82].

Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 48,439,000, a significant increase from HKD 17,801,000 in the same period of 2020, representing a growth of 172%[10] - Gross profit for the same period was HKD 37,413,000, compared to HKD 16,110,000 in 2020, indicating a gross margin improvement[10] - The operating loss narrowed to HKD 4,664,000 from HKD 86,620,000 year-on-year, showing a substantial reduction in losses[10] - The net loss for the period was HKD 6,411,000, a significant improvement from HKD 88,141,000 in the previous year[10] - Basic and diluted loss per share improved to HKD 1.53 from HKD 13.56 in the same period last year[11] - The group recorded a loss of HKD 6,137,000 for the six months ended June 30, 2021, compared to a loss of HKD 54,110,000 for the same period in 2020[79] - The investment holding segment recorded a pre-tax loss of approximately HKD 12,200,000, improved from a pre-tax loss of approximately HKD 23,100,000 in the previous year[112] - The hotel segment reported a pre-tax loss of approximately HKD 600,000, an improvement from a pre-tax loss of approximately HKD 4,100,000 in the same period last year[117] Cash and Assets - Cash and cash equivalents increased to HKD 81,220,000 as of June 30, 2021, up from HKD 58,178,000 at the end of 2020[17] - Total assets decreased slightly to HKD 345,777,000 from HKD 349,431,000 at the end of 2020[17] - The net cash generated from operating activities for the six months ended June 30, 2021, was 26,533 thousand HKD, an increase of 10.0% compared to 24,121 thousand HKD for the same period in 2020[31] - The company reported a significant increase in cash and cash equivalents, reaching 81,220 thousand HKD as of June 30, 2021, compared to 35,038 thousand HKD as of June 30, 2020, reflecting a growth of approximately 132.0%[34] - As of June 30, 2021, the group's loans to third parties amounted to HKD 100,856,000, a decrease from HKD 134,032,000 as of December 31, 2020, reflecting a reduction of approximately 25%[90] - The total accounts receivable and other receivables increased to HKD 33,417,000 from HKD 26,027,000 year-on-year, representing a growth of 28.5%[83] Market and Business Strategy - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[10] - The management remains optimistic about future performance, aiming for further revenue growth and operational efficiency improvements[10] - The group continues to explore new business opportunities in the medical sector, particularly in orthopedic services in Shanghai[50] - The company believes there is growth potential in the Chinese medical beauty industry and plans to provide management and marketing services to other plastic surgery hospitals in China[119] - The company plans to continue its hotel business operations and is open to acquisitions for additional growth opportunities[118] Employee and Operational Costs - Employee costs increased to HKD 22,072,000 from HKD 11,694,000 year-on-year, reflecting a significant rise of 88.5%[78] - The total employee cost for the six months ended June 30, 2021, was HKD 22,100,000, with a total of 108 employees[141] Foreign Exchange and Financial Risks - The company reported a foreign exchange gain of HKD 3,074,000 for the period, compared to a loss of HKD 2,823,000 in 2020[13] - The group is exposed to foreign currency risks primarily involving GBP, SGD, PHP, RMB, KRW, and USD, and utilizes forward foreign exchange contracts for hedging[140] Dividends and Shareholder Information - The group did not declare an interim dividend for the six months ended June 30, 2021, consistent with the previous year[82] - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2021, consistent with the previous year[125] - As of June 30, 2021, major shareholders hold significant stakes, with Dong Jufeng and Jia Tianjiang each owning 266,069,294 shares, representing 66.69% of the issued share capital[155] Compliance and Internal Controls - An independent internal control consultant has completed a review, finding no significant violations or errors in the financial reporting processes[159] - The company has implemented recommendations from the internal control consultant to address deficiencies in its internal control systems[159] Legal and Regulatory Matters - The group has initiated legal proceedings in China to recover outstanding amounts, with a court hearing scheduled for October 20, 2021[94]

Financial Performance - The company reported a net loss attributable to equity holders of approximately HKD 65.1 million for the fiscal year 2020, compared to a net loss of HKD 168.1 million from continuing operations in the previous year[5]. - The company reported a revenue of HKD 56,340,000 for the fiscal year 2020, a decrease from HKD 70,548,000 in 2019[13]. - The pre-tax loss for the year was HKD 125,847,000, compared to a pre-tax loss of HKD 162,882,000 in the previous year[13]. - The net loss attributable to equity holders was HKD 65,101,000, a significant improvement from a net loss of HKD 168,173,000 in 2019[13]. - Basic loss per share for the fiscal year 2020 was HKD 0.1631, with net tangible assets per share decreasing from HKD 0.52 to HKD 0.47[5]. - The company recorded basic loss per share of HKD 16.31, compared to a loss of HKD 35.91 per share in the previous year[13]. - Total assets decreased to HKD 381,296,000 in 2020 from HKD 449,289,000 in 2019[14]. - The company's net assets stood at HKD 297,387,000, down from HKD 415,560,000 in 2019[14]. - The company reported a net cash balance of HKD 58,200,000 as of December 31, 2020, with a debt-to-asset ratio of zero[19]. - The net cash inflow for the fiscal year 2020 was HKD 35,800,000, increasing the total cash and cash equivalents from HKD 22,400,000 to HKD 58,200,000[17]. Business Operations - The company completed the acquisition of a hospital in Shanghai on May 29, 2020, which is expected to enhance its performance in the medical business segment[9]. - The investment holding segment recorded realized and unrealized exchange gains of approximately HKD 10 million, with total realized and unrealized gains amounting to HKD 10.3 million, compared to a net loss of HKD 6.9 million in the previous year[5]. - The investment holding segment reported a net loss of approximately HKD 10,000,000, while the medical segment contributed revenue of approximately HKD 36,200,000[16]. - The company acquired a hospital in Shanghai, which recorded a revenue of approximately HKD 36,200,000 and a net loss of about HKD 13,300,000 during the second half of 2020[16]. - The company aims to continue developing its core business in plastic surgery and medical beauty services in China and other Asian markets[8]. - The company aims to pursue additional growth through mergers and acquisitions in the hotel business segment when opportunities arise[7]. Risk Management and Compliance - The company will adopt more cautious credit assessments and procedures in its lending and related businesses due to the global economic impact of COVID-19[10]. - The company’s financial risk management policies are detailed in the financial statements[19]. - The company has been continuously working to comply with the listing rules and has established sufficient internal controls to address the issues leading to the suspension of trading[23]. - The company has established a robust risk management and internal control system aimed at achieving strategic objectives and safeguarding shareholder investments[54]. - A three-tier risk management framework is in place, involving the board, audit committee, and senior management to enhance risk management practices[55]. - The company conducts annual risk assessments to identify potential strategic, operational, financial, and compliance risks, prioritizing them based on impact and likelihood[60]. Corporate Governance - The board of directors consists of seven members, including two executive directors, two non-executive directors, and three independent non-executive directors, ensuring a diverse governance structure[30]. - The company is committed to maintaining high levels of corporate governance and has adhered to the principles outlined in the Corporate Governance Code[26]. - The independent non-executive directors have confirmed their independence in accordance with the listing rules, ensuring effective oversight[30]. - The audit committee consists of three independent non-executive directors and is responsible for overseeing the financial reporting process, risk management, and internal controls[48]. - The company has adopted the "Standard Code for Securities Transactions by Directors of Listed Issuers" and confirmed compliance throughout the review year[29]. Shareholder Information - The largest customer accounted for 11% of total sales, while the top five customers combined represented 21% of total sales[80]. - The largest supplier contributed 9% of total purchases[80]. - No dividends were recommended for the fiscal year ending December 31, 2020, consistent with the previous year[81]. - The company has not disclosed any significant transactions or contracts involving directors with substantial interests during the year[140]. - As of December 31, 2020, major shareholders include Dong Jufeng with a 66.69% stake, and Jia Tianjiang also holding 66.69% through controlled entities[135]. Related Party Transactions - The company confirmed that all related party transactions were conducted on normal commercial terms and in the interest of shareholders[149]. - The company’s independent auditors confirmed that there were no issues with the related party transactions for the fiscal year 2020[149]. Acquisitions and Goodwill - The company completed the acquisition of Longwei Group Limited and its subsidiaries for approximately HKD 32,837,000 during the year[183]. - As of December 31, 2020, goodwill amounted to approximately HKD 60,687,000, an increase of about HKD 49,726,000 compared to the previous year due to the acquisition of Longwei Group[184]. - The company conducted annual impairment assessments for goodwill, which involved significant management judgment regarding key assumptions used in the impairment model[184]. Financial Reporting - The independent auditor's report confirmed that the consolidated financial statements reflect the group's financial position accurately as of December 31, 2020[178]. - The company has complied with the public float requirements as per the listing rules[166]. - The company’s financial statements included disclosures related to business combinations in accordance with current accounting standards[183].

Financial Performance - The company reported a net loss attributable to equity holders of approximately HKD 170.2 million for the fiscal year 2019, compared to a net loss of approximately HKD 27.6 million in the previous year, marking an increase in net loss of 516%[5]. - The group reported a loss of HKD 190,024,000 for the year, compared to a loss of HKD 16,362,000 in 2018, indicating a significant decline in profitability[11]. - Basic loss per share for the year was HKD 42.65, compared to a loss of HKD 6.92 in the previous year, reflecting a deterioration in financial performance[11]. - The group recorded a net loss of approximately HKD 166.2 million for the fiscal year 2019, compared to a net loss of approximately HKD 40 million in the fiscal year 2018[14]. - The total realized and unrealized net loss for the fiscal year 2019 was approximately HKD 50.2 million, compared to a net gain of approximately HKD 6.9 million in fiscal year 2018[14]. Revenue and Segments - The hotel division contributed total revenue of approximately HKD 9.6 million, down from approximately HKD 20.8 million in the previous year, indicating a decline of 54%[5]. - The medical segment generated royalty income of approximately HKD 20.3 million, an increase from approximately HKD 8.1 million in the previous year, reflecting a growth of 150%[7]. - The group's revenue from continuing operations for 2019 was HKD 70,548,000, an increase of 18.5% from HKD 59,669,000 in 2018[11]. - Revenue for 2019 was HKD 12,726,000, a decrease of 18.3% from HKD 15,592,000 in 2018[175]. Assets and Liabilities - Total assets decreased to HKD 486,774,000 in 2019 from HKD 705,272,000 in 2018, representing a decline of 30.9%[12]. - The group's net assets were HKD 399,154,000, down from HKD 576,001,000 in 2018, indicating a reduction of 30.8%[12]. - The carrying value of goodwill and intangible assets as of December 31, 2019, was HKD 35,401,000 and HKD 117,396,000 respectively, with impairment losses of HKD 51,819,000 and HKD 18,879,000 in 2018[179]. Cash Flow and Financing - The group reported a net cash outflow from operating activities of HKD 116,800,000 for the fiscal year 2019[17]. - The group recorded a net cash inflow from investing activities of HKD 45,000,000 in fiscal year 2019[17]. - The group repaid bank loans amounting to HKD 28,800,000 during the fiscal year 2019[17]. - The company provided a loan of $13,000,000 (equivalent to HKD 101,509,000) to Borrower A at an annual interest rate of 12%, which was not repaid by the due date, leading to a recognized impairment loss of HKD 62,778,000 as of December 31, 2019[187]. Corporate Governance - The company has maintained compliance with corporate governance codes throughout the review period, with some deviations noted[23]. - The board of directors consists of eight members, including two executive directors and three independent non-executive directors[27]. - The company regularly reviews its corporate governance practices to ensure adherence to established codes[25]. - The company has established a comprehensive onboarding guide for newly appointed directors, covering business operations and responsibilities under listing rules[31]. Risk Management - The company has established a risk management manual to define responsibilities and procedures for risk assessment and management[54]. - The board is responsible for overseeing the effectiveness of risk management and internal control systems implemented by management[48]. - The company has implemented measures to ensure compliance with corporate governance codes and regulations[43]. Strategic Plans and Future Outlook - The company plans to continue expanding its medical business, including the acquisition of a plastic surgery hospital in Shanghai, aligning with its growth strategy in the medical sector[7]. - The company aims to pursue additional growth opportunities through mergers and acquisitions in the hotel sector to enhance its regional presence[7]. - The company recognizes the potential adverse impacts of global economic conditions and trade tensions between China and the United States on its business[20]. Related Party Transactions - Independent non-executive directors confirmed that the related party transactions were conducted in the ordinary course of business and on normal commercial terms[143]. - The auditors were unable to conclude on the compliance of disclosed related party transactions due to limitations in obtaining sufficient appropriate evidence[144]. Share Incentive Plan - The company adopted a share incentive plan in December 2016, allowing the board to grant shares to directors and employees as incentives[36]. - A total of 37,862,500 shares were awarded to former chairman Jiang Yulin, with the issuance approved by independent shareholders at a special general meeting[87]. Impairment and Loans - The company recognized a total impairment loss of HKD 68,513,000 for all loans as of December 31, 2019, despite all borrowers failing to repay by the agreed due dates[192]. - The company extended the repayment date for Borrower B's loan of RMB 10,000,000 (equivalent to HKD 11,899,000) multiple times, with an impairment loss of HKD 762,000 recognized as of December 31, 2019[188].

Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 27,692,000, representing a 15.0% increase from HKD 23,909,000 in the same period of 2018[4] - Gross profit for the same period was HKD 17,829,000, with a gross margin of approximately 64.3%[4] - The company reported a loss from continuing operations of HKD 8,813,000, compared to a loss of HKD 27,000 in the previous year[4] - The total comprehensive loss for the period was HKD 15,487,000, an improvement from a loss of HKD 19,399,000 in 2018[8] - Basic loss per share for the period was HKD (3.33), compared to HKD (2.62) in the previous year[6] - The group reported a total comprehensive income of HKD (1,001) thousand for the six months ended June 30, 2019, compared to HKD 17,829 thousand for the same period in 2018[58] - The company reported a net loss attributable to equity holders of approximately HKD 13.3 million for the six months ended June 30, 2019, compared to a net loss of approximately HKD 10.5 million in the same period last year, indicating an increase in loss of about 26.67%[119] Assets and Liabilities - Non-current assets decreased to HKD 250,082,000 from HKD 324,198,000 as of December 31, 2018[10] - Current assets totaled HKD 456,056,000, an increase from HKD 381,074,000 at the end of 2018[10] - The company's total equity as of June 30, 2019, was HKD 557,544,000, down from HKD 576,001,000 at the end of 2018[13] - The total accounts receivable, net of impairment losses, was HKD 84,667,000 as of June 30, 2019, down from HKD 93,780,000 as of December 31, 2018[88] - The group’s total assets as of June 30, 2019, were HKD 706,138 thousand, slightly up from HKD 705,272 thousand as of December 31, 2018[57] - The group’s total liabilities increased to HKD 148,594 thousand as of June 30, 2019, compared to HKD 129,271 thousand as of December 31, 2018[57] Cash Flow and Financing - The net cash used in operating activities for the six months ended June 30, 2019, was HKD (99,056,000), compared to HKD (119,071,000) for the same period in 2018, indicating an improvement of approximately 16.9%[24] - The cash and cash equivalents decreased by HKD (104,112,000) for the six months ended June 30, 2019, compared to a decrease of HKD (80,490,000) in the same period of 2018[26] - The financing activities generated a net cash inflow of HKD 6,495,000 for the six months ended June 30, 2019, compared to HKD 9,569,000 in the previous year[24] - The group’s total liabilities related to interest-bearing borrowings were 29,001 thousand HKD as of June 30, 2019, with no amounts due within one year[99] Operational Highlights - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[4] - The company is exploring potential mergers and acquisitions to enhance its market position and operational capabilities[4] - The group generated revenue of HKD 15,363 thousand from external customers for the six months ended June 30, 2019, compared to HKD 12,302 thousand for the same period in 2018, representing a growth of approximately 25%[55] - The hotel division recorded a pre-tax loss of approximately HKD 6.7 million for the period, a significant improvement from a pre-tax loss of approximately HKD 19.4 million in the same period last year, representing a reduction of about 65.5%[124] Investments and Acquisitions - The company invested HKD (2,512,000) in an associated company during the six months ended June 30, 2019, indicating ongoing investment strategies[24] - The company completed the sale of assets under the hotel sale agreement for a total consideration of approximately USD 4.625 million on August 2, 2019[121] - The company will explore market opportunities in its investment in S-R Burlington Partners, LLC, where it holds a 27% interest[129] Corporate Governance - The company confirmed compliance with the corporate governance code throughout the reporting period, with all directors adhering to the standards of conduct for securities transactions[141][137] - The company has established a remuneration committee to recommend the allocation of shares under the share incentive plan[148] Shareholder Information - Major shareholders include Xincheng Securities Co., Ltd. with 249,539,294 shares (62.54%) and Dong Jufeng with 266,069,294 shares (66.69%) as of June 30, 2019[168] - The company did not declare an interim dividend for the six months ended June 30, 2019, consistent with the previous year[85]