Financial Performance - Revenue for the year ended March 31, 2022, was HK$162,993,000, a decrease of 27% from HK$223,147,000 in 2021[8]. - Gross profit for the same period was HK$112,546,000, down from HK$161,448,000, reflecting a significant decline[8]. - The loss for the year attributable to owners of the Company was HK$43,888,000, an improvement from a loss of HK$127,377,000 in the previous year[8]. - Total assets as of March 31, 2022, increased to HK$246,773,000 from HK$208,328,000 in 2021, indicating growth in the company's asset base[8]. - Shareholders' equity rose to HK$105,159,000, a substantial increase from HK$21,054,000 in the prior year[8]. - Basic loss per share from continuing operations was HK$1.53, compared to HK$4.91 in the previous year, showing a reduction in losses[8]. - The Group recorded a loss of approximately HK$44.4 million during the Reporting Period, a significant improvement from a loss of HK$125.7 million in 2021[67]. - The Group reported a loss of approximately HK$44.4 million for the reporting period, compared to a loss of HK$125.7 million in the previous year[73]. - The gross profit margin for the continuing operations was approximately 69.0%, a decrease of 3.4 percentage points from 72.4% in the previous year[31]. - The gross profit for the health and beauty supplements and products segment decreased by 29.6% to approximately HK$108.1 million in 2022, with a gross profit margin of 69.4% compared to 73.0% in 2021[58]. Revenue and Sales - The total revenue from continuing operations for FY2021/22 was approximately HK$162,993,000, a decrease of 26.96% compared to HK$223,147,000 in FY2020/21[16]. - Revenue from the core health and beauty supplements and products segment was approximately HK$155.6 million, down from HK$210.5 million in 2021, representing a decrease of approximately HK$54.9 million or 26.1%[40]. - Revenue from health supplements decreased by approximately HK$41.2 million or 25.0% to approximately HK$123.6 million, while revenue from beauty supplements decreased by approximately HK$13.3 million or 29.4% to approximately HK$32.0 million[41]. - The top four best-selling products contributed approximately HK$83.1 million or 53.4% of the segment's total revenue during the Reporting Period[43]. - The Group's flagship products "Royal Medic No.1 Chinese Cs-4" and "RM Broken Ganoderma Spore" achieved record sales in April 2022[16]. - The discount sales event in April showed a strong rebound, indicating that core business products are still on the right track[32]. Strategic Initiatives - The company is focusing on market expansion and new product development as part of its future strategy[8]. - Management indicated plans for further technological advancements and potential acquisitions to enhance growth prospects[8]. - The Group plans to expand its product portfolio and attract new customers to increase sales revenue[22]. - There is a strategy to expand the "Royal Medic" brand into the People's Republic of China and Southeast Asia to increase market share[22]. - The Group aims to enhance customer service experience by integrating existing customer data resources[22]. - A cooperation plan with Shijiazhuang Yiling Pharmaceutical is in place to introduce "Royal Medic" products to the PRC through their pharmacy network[22]. - The Group is focused on increasing the number of offline sales channels to boost market presence[22]. - The Group plans to actively implement measures to control administration and production costs while continuing to roll out new products and expand distribution channels[159]. - The Group is exploring cross-border and online solutions to tap into retail markets in other regions in Asia due to uncertainties from ongoing COVID-19 mutations[106]. - The Group has initiated a trial run for penetration into local department stores and supermarkets starting from April 2022[113]. Cost Management - Effective cost control measures were implemented to reduce costs amid the unpredictable business environment[18]. - Selling and distribution expenses decreased by approximately HK$9.6 million or 24.3% to approximately HK$29.9 million for the Reporting Period[59]. - Administrative expenses decreased by approximately HK$21.9 million or 27.4% to approximately HK$58.1 million for the Reporting Period[63]. - The Group is implementing cost control measures and strengthening partnerships with distribution channels to improve performance in the upcoming financial years[105]. Research and Development - The Group collaborates with The Chinese University of Hong Kong for research and development, focusing on proprietary intellectual property products since its listing in 2013[123]. - The Royal Medic Research and Development Centre, established in 2017, is committed to improving quality control and developing new products, with projects funded by the HKSAR government[132]. - The R&D Centre is currently studying the effects of products on lipid accumulation, immunomodulation, and the use of liposome technology to enhance product efficacy[132]. - The Group is collaborating with external research partners, such as CUCAMed, to develop and promote new products under the brand "LEGEND"[160]. - The Group is seeking opportunities to collaborate with reputable universities for research aimed at developing new products[160]. Regulatory and Market Environment - The economic environment in Hong Kong has been challenging due to the COVID-19 pandemic, impacting retail sales significantly[28]. - Regulatory risks are a significant concern, with potential changes in policies affecting the health supplement industry in Hong Kong[151]. - The Group is closely monitoring regulatory changes and adjusting strategies to adapt to the evolving operating environment[152]. - The health and beauty supplements business is closely tied to Hong Kong's economic conditions, with potential adverse effects from slowing economic growth or recession[159]. Management and Governance - Mr. Wang Xihua has over 20 years of commercial experience in business development and enterprise management in the PRC[165]. - Mr. Cheung Siu Fai has held key positions in major investment banks, including Merrill Lynch and Citigroup Global Markets[168]. - Mr. Lam Wai Tong is responsible for human resources management, administrative functions, internal control review, financial reporting, and treasury functions[169]. - The independent non-executive directors bring diverse expertise from various industries, enhancing the company's governance[185][186][187]. - The company is committed to maintaining high standards of financial reporting and internal controls, as evidenced by the roles of its audit committee members[185]. Human Resources - As of March 31, 2022, the Group had 152 employees, a decrease from 188 in 2021, with staff costs amounting to approximately HK$59.8 million, down from HK$87.8 million in 2021[95][99]. - The Group's remuneration policy includes salaries, benefits, and discretionary bonuses, regularly reviewed against market levels and Group performance[96][100].

Financial Performance - Revenue from continuing operations for the six months ended September 30, 2021, was HKD 95,746,000, a decrease of 18.4% compared to HKD 117,355,000 for the same period in 2020[9] - Gross profit for the same period was HKD 64,687,000, down 23.7% from HKD 84,828,000 year-on-year[9] - Operating loss for the six months was HKD 48,217,000, compared to a loss of HKD 51,179,000 in the previous year, indicating a slight improvement[9] - Loss before tax was HKD 56,997,000, with a tax expense of HKD 1,087,000, resulting in a total loss from continuing operations of HKD 58,084,000[9] - Basic and diluted loss per share from continuing operations was HKD 2.18, compared to HKD 2.62 for the same period last year[13] - Total comprehensive loss for the period was HKD 58,239,000, compared to HKD 68,061,000 in the previous year, showing a reduction in overall losses[11] - The company reported other income of HKD 5,233,000, down from HKD 12,551,000 in the previous year, reflecting a decline in additional revenue streams[9] - The company reported a total revenue of HKD 117,355,000, with significant contributions from both local and international markets[39] - The company reported a loss attributable to owners of approximately HKD 57.9 million, compared to HKD 67.2 million in the previous year, with a significant reduction in loss before one-off fair value losses of financial instruments[130] Cost Management - Selling and distribution expenses decreased to HKD 16,505,000 from HKD 21,871,000, indicating cost control measures were implemented[9] - Administrative expenses were reduced to HKD 45,341,000 from HKD 64,907,000, demonstrating significant cost-cutting efforts[9] - Employee costs for continuing operations amounted to HKD 32,530,000, a decrease from HKD 45,308,000 in the previous year[51] - The company reported a significant decrease in interest expenses related to lease liabilities, with HKD 7,347,000 for Chang Fai Limited compared to HKD 11,554,000 in the previous year[123] Asset and Liability Management - As of September 30, 2021, total non-current assets amounted to HKD 144,882 thousand, a decrease from HKD 146,994 thousand as of March 31, 2021[15] - Current assets totaled HKD 103,668 thousand, down from HKD 121,875 thousand, with inventory at HKD 145,312 thousand and accounts receivable at HKD 19,213 thousand[15] - The company reported a net current asset of HKD 38,683 thousand, a significant improvement from a net current liability of HKD 57,729 thousand as of March 31, 2021[15] - Total liabilities decreased to HKD 64,985 thousand from HKD 179,604 thousand, primarily due to a reduction in bank borrowings from HKD 92,281 thousand to HKD 33,527 thousand[15] - The company's equity increased to HKD 82,525 thousand from HKD 19,037 thousand, reflecting a strong recovery in financial position[17] - Cash and cash equivalents were reported at HKD 31,307 thousand, down from HKD 36,652 thousand, indicating a need for improved cash management[15] Cash Flow - Operating cash flow before working capital changes was HKD 15,224 thousand, a decrease compared to HKD 19,186 thousand in the previous year[23] - The net cash from operating activities was HKD 11,832 thousand, down from HKD 17,758 thousand, highlighting a decline in operational efficiency[23] - The company generated a net cash inflow from investing activities of HKD 4,942 thousand, an increase from HKD 2,202 thousand in the previous year[23] - The company reported a net cash outflow from financing activities of HKD (19,970) thousand for the six months ended September 30, 2021, compared to HKD (48,532) thousand for the same period in 2020, indicating an improvement in cash flow management[25] Business Strategy and Market Expansion - The company plans to focus on market expansion and new product development to drive future growth[18] - The company plans to enter the Singapore and Malaysia markets in Q1 2022, aiming to open over 300 stores in Singapore and over 800 stores in Malaysia within the year[156] - The company has invested in smart retail and logistics platforms to integrate online and offline channels, with a goal to establish over 50 smart retail and logistics points in Hong Kong by Q1 2022[159] - The company plans to launch over 20 stock-keeping units across three main product lines in 2022 through strategic collaborations with pharmaceutical entities and university research centers[160] Impairment and Asset Valuation - The company did not report any impairment losses on goodwill during the current period, contrasting with HKD 10,222,000 in the previous year[9] - The company recorded an impairment loss of HKD 2,179,000 for the Health 365 Group due to lower-than-expected financial performance and a reduction in sales scale to exclusive distributors[89] - The impairment loss for the Ling Market Strategy Group amounted to HKD 676,000 due to underperformance and management changes during the reporting period[90] - The impairment loss for the Group's interest in Leader Shine amounts to HKD 35,594,000, with no signs of reversal as of September 30, 2021[98] Shareholder Information - Major shareholders include Chen Yande with 23.83% ownership, Able Island Group Limited with 23.50%, and Hammer Capital Private Investments Limited also with 23.50%[173] - As of September 30, 2021, the company had a total of 3,077,893,440 shares issued, with significant holdings by Able Island (723,242,000 shares) and Cosmo Group (512,982,240 shares)[176] - The company has 138,000,000 stock options outstanding as of September 30, 2021, with 10,000,000 options having lapsed during the reporting period[179] Corporate Governance - The audit committee consists of three independent non-executive directors, overseeing financial reporting and internal controls[188] - The company has complied with all corporate governance codes during the reporting period, except for the separation of roles between the chairman and CEO[185] - The company is actively seeking a suitable candidate to assume the role of chairman to comply with corporate governance standards[185] - The mid-term report was approved by the board on November 30, 2021, and includes unaudited consolidated results for the reporting period[190]

Financial Performance - Total revenue from continuing operations for FY2020/21 was approximately HK$223.1 million, a decrease of 26.6% compared to FY2019/20[22]. - Revenue from the core health and beauty supplements and products business was approximately HK$210.5 million, while online businesses generated approximately HK$12.6 million during FY2020/21[22]. - Loss for the year attributable to owners of the Company was HK$127.4 million, compared to a loss of HK$139.7 million in the previous year[11]. - Total assets as of 31 March 2021 were HK$208.3 million, down from HK$438.9 million in 2020[11]. - Shareholders' equity decreased to HK$21.1 million from HK$142.7 million in the previous year[11]. - Basic loss per share from continuing operations was HK$4.91, compared to HK$0.46 in the previous year[11]. - The Group recorded total revenue from continuing operations of approximately HK$223.1 million for the fiscal year ended March 31, 2021, a decrease of 26.6% compared to HK$303.9 million in the previous fiscal year[28][41]. - The loss attributable to owners of the Company decreased from approximately HK$139.7 million in FY2019/20 to approximately HK$127.4 million in FY2020/21[33][36]. - The Group's total loss for the year was approximately HK$125.7 million, an improvement from a loss of HK$151.7 million in 2020, with loss attributable to owners amounting to approximately HK$127.4 million[92]. - The total revenue for health supplements was HK$121.9 million in 2021, down from HK$198.3 million in 2020, reflecting a decrease in segment turnover[72]. Corporate Restructuring and Strategy - The management has been implementing a corporate restructuring strategy to refocus on the core health and beauty segment[22]. - The Group has completed its corporate restructuring by the end of March 2021, with no substantial impairment expected in the coming financial year due to the disposal of non-core businesses[24][28]. - The Group plans to implement stricter internal cost control policies and diversify its market and channel strategies in the near future[30][40]. - The Group completed the disposal of its 69.75% interest in IAHGames on 30 June 2020 to focus on the health and beauty supplements and products business[82]. - The Group is actively planning cross-border and online solutions to explore retail markets in other regions of Asia, anticipating a boost in sales due to rising COVID-19 vaccination rates and relaxed travel policies[116]. Market and Sales Performance - The retail segment covering health and beauty supplements was adversely affected by the Hong Kong Compulsory Quarantine Arrangement for inbound travelers, leading to a significant drop in cross-border consumption figures[25][44]. - The health and beauty supplement segment maintained encouraging performance compared to counterparts in Hong Kong and the region, attributed to strong brand establishment and cash flow management[26][29]. - Revenue from shelves in the Distribution Facilitator's stores accounted for approximately 76.7% of total revenue, showing growth from HK$155.4 million in 2020 to HK$161.4 million in 2021[58]. - Revenue from special designated counters (SDCs) located in the Distribution Facilitator's stores decreased by approximately 67.0% due to the impact of COVID-19 on tourist spending[64][67]. - 100.0% of the revenue during the reporting period was generated from the Hong Kong market, consistent with the previous year[66][68]. - The Group had 23 Royal Medic SDCs and 34 Health Proof SDCs in distribution facilitators' stores as of 31 March 2021[63][67]. - The revenue from other distribution channels, including online sales, increased significantly from HK$1.96 million in 2020 to HK$8.69 million in 2021[58]. Cost Management and Expenses - Selling and distribution expenses decreased by approximately HK$24.3 million or 38.1% to approximately HK$39.5 million for the Reporting Period, down from HK$63.8 million in 2020[76]. - Administrative expenses for the segment decreased by approximately HK$47.3 million or 37.2% to approximately HK$80.0 million, compared to HK$127.3 million in 2020, due to cost control measures[77]. - The Group's gearing ratio increased to approximately 798.1% as of March 31, 2021, compared to 143.9% in 2020, primarily due to a decrease in total equity[95]. - Cash and bank balances as of March 31, 2021, were approximately HK$36.7 million, a decrease from HK$57.2 million in 2020, with a current ratio of approximately 0.7 times, down from 1.2 times in 2020[95]. Product Development and Innovation - The Group launched a new product, Liver Plus Capsule, during the reporting period, and is developing a new Innovation Technology Fund matching fund product, expected to launch in Q4 2021 or Q1 2022[117]. - The Group has been collaborating with universities for research and development, enhancing its proprietary intellectual property products since its listing in 2013[117]. - The Group's major products undergo stringent internal compliance tests before market launch to ensure quality control[117]. - The Group is actively seeking collaborations with reputable universities for research to develop new products[139]. Regulatory and Economic Environment - The Group is monitoring regulatory changes in the health supplement industry, which may impact future development and compliance strategies[136]. - Regulatory risks are significant, with potential changes in policies affecting the health supplement industry in Hong Kong[140]. - Economic downturns may adversely impact consumer preferences and spending, affecting the Group's financial performance[142]. - The ongoing COVID-19 pandemic has significantly impacted the local retail market, prompting the Group to implement cost control measures and strengthen partnerships with distribution channels[111]. Management and Governance - The Group's management team reported successful and smooth results from the restructuring efforts over the past two years[22]. - The Group's management team includes professionals with extensive backgrounds in accounting, finance, and legal affairs, contributing to robust governance[164][166]. - The Chief Financial Officer has 27 years of finance and investment experience, enhancing the Group's financial management capabilities[163]. - The Chief Operation Officer of the health and beauty segment has over 20 years of experience in the pharmaceutical industry, ensuring quality and compliance in production[168]. Future Outlook - The Group's business outlook and future development directions are discussed in various sections of the annual report[180]. - The Group's overall capital management strategy remains unchanged, focusing on balancing debt and equity to maximize shareholder returns[108].

Financial Performance - Revenue for the six months ended September 30, 2020, was HKD 117,484,000, a decrease of 22% compared to HKD 150,612,000 for the same period in 2019[9] - Gross profit for the period was HKD 84,853,000, down from HKD 112,905,000, reflecting a gross margin decline[9] - The operating loss for the period was HKD 53,390,000, compared to an operating loss of HKD 27,693,000 in the previous year, indicating a worsening operational performance[9] - The loss before tax was HKD 61,862,000, compared to a loss of HKD 41,227,000 in the same period last year, highlighting increased financial challenges[9] - The total comprehensive loss for the period was HKD 68,061,000, significantly higher than HKD 26,550,000 in the prior year[11] - The basic loss per share from continuing operations was HKD 2.58, compared to HKD 1.89 in the previous year, indicating a decline in shareholder value[11] - The company reported a loss from discontinued operations of HKD 1,396,000, contrasting with a profit of HKD 16,891,000 in the same period last year[9] - The total loss before tax from continuing operations was HKD 61,862, compared to a loss of HKD 41,227 in the previous year, indicating a deterioration in financial performance[49] - The company reported a loss attributable to owners of HKD 67,183,000 for the six months ended September 30, 2020, compared to a loss of HKD 30,534,000 for the same period in 2019, representing an increase in loss of approximately 120%[75] Assets and Liabilities - As of September 30, 2020, non-current assets totaled HKD 169,059 thousand, down from HKD 258,945 thousand as of March 31, 2020, representing a decrease of approximately 34.7%[13] - Current assets included inventory of HKD 109,893 thousand and accounts receivable of HKD 32,867 thousand, compared to HKD 179,912 thousand and HKD 31,390 thousand respectively, indicating a significant reduction in total current assets[13] - Cash and cash equivalents decreased to HKD 26,973 thousand from HKD 57,157 thousand, reflecting a decline of approximately 52.8%[13] - Total liabilities decreased to HKD 140,345 thousand from HKD 146,483 thousand, a reduction of about 4.2%[15] - The total equity attributable to owners of the company decreased to HKD 76,936 thousand from HKD 142,713 thousand, a decline of approximately 46.1%[15] - The company’s total assets less current liabilities stood at HKD 138,607 thousand, down from HKD 230,491 thousand, indicating a decrease of about 39.9%[15] - The company’s goodwill decreased from HKD 26,570 thousand to HKD 16,348 thousand, a reduction of approximately 38.5%[13] - The company’s liabilities related to assets classified as held for sale were not present as of September 30, 2020, compared to HKD 61,883 thousand as of March 31, 2020, indicating a strategic shift[15] Cash Flow and Financing Activities - The net cash from operating activities was HKD 13,885 thousand, compared to a negative cash flow of HKD 255 thousand in the same period last year, showing a significant improvement[21] - The company reported a net cash outflow from financing activities of HKD 48,532 thousand, contrasting with a net inflow of HKD 31,712 thousand in the previous year[21] - The company completed the sale of its wholly-owned subsidiary Star Root and its non-wholly-owned subsidiary Tengfu Asia Limited for a total cash consideration of HKD 10,000 on September 10, 2020[54] - The company sold its non-wholly-owned subsidiary IAHGames for a total consideration of HKD 4,651,000 on June 30, 2020[63] - The company reported a loss of HKD 443 for the period ended September 10, 2020, compared to a profit of HKD 4,901 for the same period in 2019[59] Business Operations and Strategy - The group experienced a significant impact on its financial performance due to the COVID-19 pandemic, resulting in reduced revenue and increased government subsidies[23] - The online payment business operated by Empire Access Limited was terminated as of March 28, 2020, with its performance reported separately as discontinued operations[24] - The group has applied new accounting policies related to government grants, recognizing them systematically in the income statement as related costs are incurred[33] - The group has terminated its gaming publishing business through IAHGames Hong Kong Limited as of July 1, 2020, and its online advertising business through Star Root Limited as of September 11, 2020, with results reported as discontinued operations[23] - The company plans to establish an international e-commerce platform and a network of traditional Chinese medicine clinics in China and overseas as part of a proposed collaboration with Yiling Pharmaceutical[122] - The company aims to reduce costs and has implemented measures such as decreasing the number of designated counters to lower rental expenses[133] - The company is developing a new product in collaboration with the Hong Kong University of Science and Technology, focusing on new topical products and evaluating the efficacy of existing products[155] - A joint venture with Regenerative Biotech Limited in the U.S. aims to leverage AI and machine learning for the development of anti-aging health products, enhancing the company's biotech product portfolio and profitability[156] Employee and Management Costs - Employee costs for continuing operations amounted to HKD 45,308, down from HKD 71,226, a reduction of 36.4%[49] - The total remuneration for key management personnel for the six months ended September 30, 2020, was HKD 7,306,000, compared to HKD 20,882,000 for the same period in 2019[116] Share Capital and Stock Options - The company’s issued and paid-up share capital as of September 30, 2020, was HKD 6,413,000, an increase from HKD 6,298,000 as of March 31, 2020[102] - The company’s directors hold a total of 16,500,000 stock options, with no options exercised during the reporting period[179] - The company has a total of 116,500,000 unexercised stock options as of September 30, 2020[179] - The company granted stock options to eligible persons on October 29, 2020, for a total of 126,000,000 shares at an exercise price of HKD 0.20 per share[179] Governance and Compliance - The company has adopted the corporate governance code as per the Stock Exchange's listing rules and has complied with all provisions, except for the separation of roles between the chairman and CEO[185] - The audit committee consists of three independent non-executive directors, overseeing financial reporting and internal controls[188] - The interim financial statements for the period have been reviewed by external auditors in accordance with the relevant standards[188]

Shunten International (Holdings) Limited 順騰國際(控股)有限公司 incorporated in the Cayman Islands with limited liability 於開曼群島註冊成立之有限公司 Stock Code 股份代號 : 932 2019/2020 年 Annual Report 報 EGEND CS-4 Contents 目錄 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|--------------------------------------------------------------------------|-------|-------|-------|-------|-------|----------|--------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | 公司資料 | | | 2 | | | | | | ...

Financial Performance - For the six months ended September 30, 2019, the company reported revenue of HKD 244,734,000, an increase from HKD 158,380,000 in the same period last year, representing a growth of 54.4%[9]. - The gross profit for the same period was HKD 135,718,000, compared to HKD 97,743,000 in the previous year, indicating a gross margin improvement[9]. - The company incurred a loss of HKD 26,199,000 for the period, which is a decline from the loss of HKD 19,327,000 reported in the prior year, reflecting a worsening of 35.5%[11]. - The company reported a basic and diluted loss per share of HKD 1.38, compared to HKD 0.73 in the previous year, indicating a deterioration in earnings per share[11]. - The company reported a pre-tax loss of HKD 76.955 million for the six months ended September 30, 2019, compared to a pre-tax loss of HKD 84.255 million in the same period of 2018, indicating a reduction in losses[50]. - The company reported a net loss from the sale of property, plant, and equipment amounting to HKD 1,602 thousand for the six months ended September 30, 2019[50]. - The total loss attributable to shareholders for the six months ended September 30, 2019, was HKD 30,534,000, compared to HKD 15,431,000 for the same period in 2018, indicating a year-on-year increase of 97.5%[56]. Assets and Liabilities - The net current liabilities as of September 30, 2019, were HKD 146,508,000, showing a significant improvement from HKD 233,446,000 as of March 31, 2019[14]. - The total assets less current liabilities increased to HKD 449,656,000 from HKD 356,798,000, indicating a growth of 25.9%[14]. - The company’s cash and cash equivalents rose to HKD 94,916,000, up from HKD 65,497,000, marking a 45% increase[14]. - The company’s equity attributable to owners of the parent decreased to HKD 30,534,000 from HKD 15,431,000, indicating a loss of 97.5% in equity value attributable to shareholders[11]. - The company’s non-current liabilities increased to HKD 51,916,000 from HKD 47,692,000, representing an increase of approximately 4.6%[17]. - The company’s total liabilities decreased from HKD 158,963,000 to HKD 158,963,000, indicating a stable liability position[17]. Cash Flow and Financing - The company reported a net cash outflow from operating activities of HKD 255,000, compared to an outflow of HKD 16,000 in the previous year[24]. - The net cash generated from financing activities was HKD 31,712,000, compared to HKD 18,462,000 in the previous year, indicating a year-over-year increase of approximately 71%[24]. - The company issued convertible bonds totaling HKD 180,000,000 on October 4, 2019, with a maturity date of October 3, 2021, and an annual interest rate of 10%, raising HKD 178,200,000 after expenses[30]. - The company is actively seeking additional financing sources to improve its financial condition and support operational expansion[32]. - The company has taken measures to improve its financial situation and alleviate liquidity pressure, including the issuance of convertible bonds[30]. Revenue Breakdown - Revenue breakdown by product/service category includes health and beauty products at HKD 146.624 million, online advertising services at HKD 8.324 million, online payment services at HKD 18.810 million, e-commerce promotion at HKD 3.590 million, and game publishing at HKD 67.386 million[49]. - The core health and beauty supplements and products segment contributed approximately 59.9% of total revenue, down from 78.8% in the previous year, while online advertising, online payment, e-commerce promotion, and game publishing segments accounted for approximately 40.1% of total revenue, up from 21.2%[184]. Segment Performance - The segment performance showed a profit of HKD 24,744,000 for the six months ended September 30, 2019, compared to a profit of HKD 1,061,000 in the same period of 2018, indicating a significant improvement[166]. - The health and beauty supplements division reported a gross profit of approximately HKD 110.6 million, an increase from HKD 95.3 million in 2018, with a gross margin of 75.4%, down 1.0 percentage points year-on-year[193]. - The online advertising agency division generated revenue of approximately HKD 8.3 million, an increase of about HKD 3.7 million or 80.4% compared to 2018[195]. - The online payment division recorded revenue of approximately HKD 18.8 million, an increase of about HKD 13 million or 224.1% year-on-year[199]. Accounting and Compliance - The financial statements were prepared in accordance with Hong Kong Accounting Standards, ensuring compliance and transparency in reporting[27]. - The company has adopted several new and revised accounting standards, which did not have a significant impact on its financial statements, except for HKFRS 16[33]. - The company’s financial instruments include contingent consideration and convertible bonds, which are subject to fair value measurement and changes recognized in profit or loss[155]. Share Capital and Equity - The total issued and paid-up share capital as of September 30, 2019, was HKD 6,298,000, an increase from HKD 5,308,000 a year earlier, representing an increase of approximately 18.6%[138]. - The number of shares issued and fully paid as of September 30, 2019, was 2,518,911,200, compared to 2,123,002,150 shares a year prior, reflecting an increase of approximately 18.6%[138]. - The company successfully placed 23,391,813 shares at a price of HKD 0.4275 per share, raising approximately HKD 10,000,000, with direct expenses of about HKD 220,000[139]. Acquisitions and Investments - The company acquired a 45% stake in Leader Shine International Limited for HKD 70,000,000, which is involved in the consignment of jewelry and precious metal products[73]. - The company plans to sell 70% of its stake in Qianwei Technology Limited for HKD 229 million to focus on health and beauty supplements and products[181]. - The company acquired a subsidiary, Shou Neng Limited, for a total cash consideration of HKD 7,500,000, which was completed on May 10, 2018[171].

Special College Bay Britists of Specifical DSP r (1) 2017 - 19:20 19 19 13 2019 19 and Property of Children and and the program and ter man 3 as as and intent in there EFF LEGEND 騰訊 大粤網 香港 QQ.com/H N DIMENSION inin - STANTCE BOOK PARTY - l Contents 目錄 2 | --- | --- | |--------------------------------------------------------------------------|--------------------------| | | | | Corporate Information | 公司資料 | | Financial Highlights | 財務概要 | | Information for Investors | 給投資者的資料 | | Chairman's Statement | 主席報告 ...