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，概不對因本公告全部或任何部份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。 截至二零二二年十二月三十一日止年度之 經審核業績公告 華控康泰集團有限公司（「本公司」）董事（「董事」）會（「董事會」）宣佈本公司及其附屬公司 （統稱「本集團」）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如下： 綜合損益及其他全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 （經重列） 持續經營業務 收入 3 894,062 803,267 銷售及服務成本 (387,841) (407,091) 毛利 506,221 396,176 其他收入 4 37,928 74,596 其他收益及虧損 4,907 24,456 預期信貸虧損模式項下之減值虧損， ...

Financial Performance - Revenue for the six months ended June 30, 2022, was HK$451,085,000, an increase of 17.1% compared to HK$385,056,000 for the same period in 2021[17] - Gross profit for the period was HK$267,475,000, resulting in a gross margin of approximately 59.3%[17] - Loss before taxation was HK$70,492,000, an improvement from a loss of HK$94,526,000 in the prior year[17] - Total comprehensive expense for the period was HK$58,250,000, compared to HK$60,817,000 in the previous year, indicating a slight improvement[17] - The company reported a total loss for the period of HK$35,086,000 for the six months ended June 30, 2022, compared to a loss of HK$73,164,000 for the same period in 2021, indicating an improvement[19] - The basic loss per share from continuing operations was HK$0.92, compared to HK$1.60 for the same period in 2021, reflecting a reduction in losses[19] - The total comprehensive income attributable to owners of the company for the period was a loss of HK$49,010,000, compared to a loss of HK$65,973,000 for the same period in 2021, showing a reduction in overall losses[19] - The company reported a loss for the period from continuing operations of HK$51,154,000 for the six months ended June 30, 2022, compared to a loss of HK$89,182,000 in the same period of 2021, representing a 42.6% improvement[112] Cash Flow and Liquidity - Cash and cash equivalents decreased from HK$167,962,000 at December 31, 2021, to HK$133,178,000 at June 30, 2022, reflecting a reduction in liquidity[21] - For the six months ended June 30, 2022, the company reported a net cash used in operating activities of HK$67,710,000, compared to HK$56,724,000 for the same period in 2021[32] - The net decrease in cash and cash equivalents was HK$17,929,000, significantly improved from HK$65,067,000 in the prior year[34] - Cash and cash equivalents at the end of the period stood at HK$150,410,000, an increase from HK$107,679,000 year-on-year[34] - The Group's bank balance increased to HK$1,371,000 as of June 30, 2022, from HK$889,000 as of December 31, 2021, reflecting an increase of about 54%[158] Assets and Liabilities - Non-current assets decreased from HK$1,778,091,000 at December 31, 2021, to HK$1,509,383,000 at June 30, 2022, primarily due to a decline in property, plant, and equipment[21] - Current liabilities decreased from HK$702,565,000 at December 31, 2021, to HK$680,892,000 at June 30, 2022, showing a slight improvement in the company's short-term financial obligations[23] - Total equity attributable to owners of the company decreased from HK$1,192,018,000 at December 31, 2021, to HK$1,143,008,000 at June 30, 2022, indicating a decline in shareholder value[23] - The total segment assets as of June 30, 2022, were HK$2,118,991,000, down from HK$2,457,405,000 as of December 31, 2021, indicating a decrease of 13.8%[77] - The total segment liabilities as of June 30, 2022, were HK$1,012,663,000, compared to HK$1,106,749,000 as of December 31, 2021, reflecting a decrease of 8.5%[77] Revenue Segmentation - Pharmaceutical business revenue for the six months ended June 30, 2022, was HK$370,379,000, an increase from HK$306,701,000 in the same period of 2021, representing a growth of 20.8%[71] - Fitness business revenue, including personal training classes and royalty fee income, totaled HK$61,882,000 for the six months ended June 30, 2022, compared to HK$51,885,000 in the same period of 2021, reflecting a growth of 19.5%[71] - Revenue from contracts with customers recognized at a point in time was HK$399,637,000 for the fitness business, while revenue recognized over time was HK$51,448,000[71] - The geographical market breakdown showed that revenue from Mainland China was HK$365,167,000, while revenue from Singapore and Taiwan was HK$61,882,000 and HK$18,824,000, respectively[71] Strategic Outlook - The company aims to expand its market presence and enhance product offerings in the upcoming quarters[17] - Future outlook includes a focus on new product development and potential strategic partnerships to drive growth[17] - The company continues to focus on expanding its pharmaceutical and fitness business segments, with ongoing investments in product development and market expansion strategies[68] Impairment and Losses - The company reported an impairment loss of HK$33,665,000 recognized under the expected credit loss model[17] - The impairment loss on goodwill was HK$263,000, compared to a significant loss of HK$46,358,000 in the prior year, indicating a substantial reduction in impairment[10] - Significant judgments were made by management regarding the recoverable amount for the fitness business segment due to indicators of impairment related to COVID-19[52] Legal Proceedings - As of June 30, 2022, the Group has contingent liabilities arising from legal proceedings related to the acquisition of a 51% equity interest in TFKT True Holdings, with ongoing litigation in the Hong Kong High Court[176] - Chongqing Kangle Pharmaceutical Co., Ltd. is involved in legal proceedings with Shanghai Haixin Pharmaceutical Co., Ltd., claiming damages of RMB 49,000,000 due to alleged non-performance of a cooperation agreement[180] - A civil mediation agreement was reached on June 24, 2022, settling the Shanghai Legal Proceedings, allowing Chongqing Kangle to sell Hydroxychloroquine Sulfate to Xi'an Haixin and dismissing all claims against Chongqing Kangle[183] - The Group is pursuing compensation from Active Gains and Mr. PJW under the profit guarantee arrangement, with legal proceedings initiated in March 2022[189]

Financial Performance - The Group's revenue for the year ended December 31, 2021, was approximately HKD 961.1 million, a decrease of about 4.8% compared to HKD 1,009.1 million in 2020[13]. - The Group reported a loss of approximately HKD 4.6 million for the year, compared to a loss of about HKD 20.1 million in 2020[13]. - The basic loss per share for the year was approximately HKD 0.27, compared to HKD 0.76 in 2020[13]. - The Group's revenue for the year ended December 31, 2021, was approximately HK$961.1 million, a decrease of approximately 4.8% compared to HK$1,009.1 million in 2020[14]. - The Group reported a net loss of approximately HK$4.6 million for the year, significantly reduced from a loss of approximately HK$20.1 million in 2020, marking an improvement of approximately HK$15.5 million[14]. - The basic loss per share for the year was approximately HK0.27 cent, compared to approximately HK0.76 cent in 2020[14]. - The Group's revenue and gross profit for the year were approximately HK$961.1 million and HK$482.9 million, respectively, reflecting decreases of approximately 4.8% and 13.1% from the previous year[32]. - The gross profit for the same period was approximately HK$482.9 million, down 13.1% from HK$555.7 million in 2020[34]. - The net loss for the year was approximately HK$4.6 million, an improvement of approximately HK$15.5 million compared to a net loss of HK$20.1 million in 2020[34]. - Basic loss per share decreased to approximately HK0.27 cent from approximately HK0.76 cent in 2020[34]. Business Segments - The pharmaceutical business has established medium and long-term development plans focusing on new product R&D, new cooperation models, and expansion into new regions and channels[20]. - The fitness business is expected to benefit from the gradual control of the COVID-19 pandemic, with an anticipated increase in gym attendance as restrictions are loosened in 2022[24][25]. - The Group plans to focus resources on business recovery and reducing membership loss while attracting new and former members in the fitness sector[25]. - The Group's previous cement business was sold in December 2020, and the financial results for 2021 do not include any contributions from this segment[31]. - In 2021, Tongfang Pharmaceutical's revenue was RMB 329.6 million, a decrease of 3.0% from RMB 339.9 million in 2020[54]. - The gross profit for Tongfang Pharmaceutical was RMB 294.9 million, down 5.7% from RMB 312.6 million in 2020[54]. - Shaanxi Life Care recorded revenue of RMB66.6 million in 2021, representing a growth of 22.4% from RMB54.4 million in 2020; gross profit increased by 34.1% to RMB31.1 million from RMB23.2 million[60]. - Chongqing Kangle's revenue decreased by 48.4% to RMB145.2 million in 2021 from RMB281.2 million in 2020; gross profit also fell by 69.8% to RMB47.8 million from RMB158.3 million[68]. - SPF achieved revenue growth of 50.5% in 2021, reaching RMB132.3 million compared to RMB87.9 million in 2020; gross profit surged by 93.6% to RMB70.1 million from RMB36.2 million[72]. Operational Challenges - The decline in revenue and gross profit was primarily due to reduced demand for Chloroquine Phosphate, impacting Chongqing Kangle's performance[39]. - The fitness business segment experienced a decrease in gross profit due to the suspension of operations in Singapore and Taiwan for approximately 10 weeks and 9 weeks, respectively, due to COVID-19[39]. - Tongfang Pharmaceutical faced supply chain disruptions due to COVID-19, impacting sales but managed to adjust its strategy and focus on other major products[56]. - The decrease in revenue was primarily due to a reduction in royalty fee income of approximately HK$15.7 million from Taiwan, affected by COVID-19 pandemic[85]. - The fitness business in Singapore had approximately 19,000 active members, with a higher churn rate during the year due to the pandemic[86]. Financial Position - As of 31 December 2021, the Group maintained bank balances and cash reserves of approximately HK$174.2 million, an increase from approximately HK$165.8 million in 2020[103]. - The Group had outstanding borrowings repayable within one year of approximately HK$226.7 million as of 31 December 2021[104]. - 82.9% of the Group's outstanding borrowings were denominated in Renminbi (RMB) and 17.1% in Singapore dollars (SGD)[104]. - As of December 31, 2021, the total borrowings of the Group were HK$243,802,000, an increase from HK$196,777,000 in 2020, resulting in a gearing ratio of 9.5%, up from 7.7% in the previous year[106]. - The Group's total assets as of December 31, 2021, were HK$2,558,775,000, compared to HK$2,542,284,000 in 2020[106]. - The Group's capital commitments for the acquisition of property, plant, and equipment amounted to HK$118,572,000 in 2021, significantly higher than HK$14,589,000 in 2020[120]. - The Group's bank borrowings were secured by assets totaling HK$144,161,000 as of December 31, 2021, compared to HK$98,474,000 in 2020[116]. Employee and Governance - The Group had 1,305 employees as of December 31, 2021, an increase from 1,221 employees in 2020[122]. - The Group's financial policy aims to minimize financial risk exposure and does not engage in speculative derivative transactions[108]. - The Group closely monitors foreign exchange risks, particularly as operations are mainly in RMB, SGD, USD, and HKD[112]. - The Group's financial management strategy focuses on maintaining competitive remuneration packages to attract and retain high-caliber employees[122]. ESG Initiatives - The Group has established an ESG management framework with clearly defined responsibilities to ensure effective implementation of ESG policies[133]. - The Board is responsible for overseeing the Group's overall ESG risks and reviewing relevant progress and performance[135]. - The Executive Committee and management are tasked with developing and implementing relevant policies and measures in accordance with the ESG strategy set by the Board[135]. - The Group is committed to operating in a manner that is economically, socially, and environmentally sustainable while balancing stakeholder interests[132]. - The Group aims to bring positive impacts to society through its ESG initiatives[132]. - The Group has identified five key ESG issues as critical aspects of its Pharmaceutical and Fitness businesses[163]. - The management is committed to integrating ESG elements into daily operational strategy assessments, considering long-term stakeholder impacts[142]. - The Group's strategy includes compliance with all applicable environmental requirements and continuous improvement towards industry best practices[140]. Environmental Management - The Group aims to reduce emissions and water consumption, focusing on minimizing environmental impact during operations[171]. - The establishment of an energy management system is expected to lower energy consumption per unit product, enhancing economic benefits[164]. - The Group is committed to creating a diverse and inclusive work environment, prioritizing employee safety and well-being[171]. - Regular monitoring of environmental parameters is part of the Group's strategy to minimize environmental impact and comply with climate change policies[173]. - The Group aims to reduce gas emissions and ensure that exhaust gas emissions meet government standards, including the Emission Standard of Air Pollutants for Catering Industry and the Integrated Emission Standard of Air Pollutants[178]. - The solar energy power generation project in Beijing covers over 30,000 square feet and fulfills the daily energy consumption requirement of the plant, with surplus solar power sold to nearby plants[178]. - Tongfang Pharmaceutical has regularly conducted monitoring of exhaust gas emissions and replaced facilities to reduce emissions, including installing electrostatic fume purifiers and low-nitrogen burners[178]. - Chongqing Kangle has implemented energy conservation and emission reduction measures, including purchasing new exhaust gas treatment equipment and upgrading waste gas treatment systems to a level-three deep treatment device[180]. - SPF has achieved a 100% waste gas collection rate from isolated ventilation cages, with purified gas discharged in compliance with emission standards, verified by third-party testing conducted twice a year[180]. - The Group produced a total of 502 tonnes of chemical wastes and 2 tonnes of medical wastes during the reporting period[198]. - Non-hazardous wastes produced amounted to 230 tonnes, with the Fitness Business not contributing significantly to non-hazardous waste emissions[199].

Revenue and Profitability - Revenue from continuing operations for the six months ended June 30, 2021, was HK$458,192,000, an increase from HK$455,709,000 in the same period of 2020[18] - Gross profit for the period was HK$225,427,000, compared to HK$243,265,000 in the prior year, reflecting a decrease of approximately 7.3%[18] - Loss for the period from continuing operations was HK$73,164,000, a significant decline from a profit of HK$4,297,000 in the same period last year[18] - Total comprehensive expense for the period amounted to HK$60,817,000, compared to HK$39,111,000 in the previous year, indicating an increase in losses[18] - The company reported a loss attributable to owners of the Company from continuing operations of HK$75,503,000 for the six months ended June 30, 2021, compared to a loss of HK$49,006,000 for the same period in 2020, representing an increase in loss of approximately 54%[20] - Total comprehensive loss for the period was HK$73,164,000, compared to a loss of HK$12,461,000 in the previous year, indicating a significant increase in comprehensive loss[20] - Basic and diluted loss per share from continuing operations was HK$1.35 for the six months ended June 30, 2021, compared to HK$0.88 for the same period in 2020, reflecting a deterioration in earnings per share[20] Expenses and Costs - Finance costs increased to HK$17,027,000 from HK$16,523,000, reflecting a rise of approximately 3.1%[18] - Distribution and selling expenses totaled HK$172,116,000, up from HK$156,005,000 in the previous year, representing an increase of approximately 10.3%[18] - Administrative expenses rose to HK$70,995,000 from HK$65,030,000, reflecting an increase of about 9.1%[18] - The company recognized impairment losses under the expected credit loss model amounting to HK$33,543,000 during the period[18] Assets and Liabilities - Non-current assets amounted to HK$1,707,809,000 as of June 30, 2021, a decrease from HK$1,759,484,000 at December 31, 2020[21] - Current assets increased to HK$746,340,000 as of June 30, 2021, compared to HK$782,800,000 at December 31, 2020, indicating a decline in liquidity[21] - Total equity attributable to owners of the Company was HK$1,125,828,000 as of June 30, 2021, down from HK$1,214,186,000 at December 31, 2020, showing a decrease of approximately 7.3%[23] - The company reported trade receivables of HK$155,532,000 as of June 30, 2021, down from HK$177,124,000 at December 31, 2020, indicating a reduction in receivables[21] - Inventories increased to HK$101,572,000 as of June 30, 2021, compared to HK$89,960,000 at December 31, 2020, reflecting a rise in stock levels[21] - The company had bank borrowings due within one year amounting to HK$214,964,000 as of June 30, 2021, compared to HK$167,627,000 at December 31, 2020, indicating an increase in short-term debt[23] Cash Flow and Financing Activities - The net cash generated from operating activities before movements in working capital was HK$56,724,000 for the six months ended June 30, 2021, compared to HK$24,534,000 for the same period in 2020, indicating a significant increase of 131.1%[30] - For the six months ended June 30, 2021, the net cash used in financing activities was HK$160,858,000, compared to HK$189,621,000 in the same period of 2020, representing a decrease of approximately 15.2%[32] - The cash and cash equivalents at the end of the period were HK$107,679,000, a decrease from HK$225,261,000 at the end of the same period in 2020, indicating a decline of approximately 52.2%[32] - The net (decrease) increase in cash and cash equivalents for the period was a decrease of HK$65,067,000, compared to an increase of HK$75,966,000 in the same period of 2020[32] Impact of COVID-19 - The Group's fitness centers in Singapore and Taiwan were suspended from operations due to COVID-19 measures, impacting financial performance significantly[39] - The Group negotiated rent forgiveness related to COVID-19 for its fitness centers, which contributed to mitigating some financial losses during the period[39] - The pharmaceutical business operations have gradually recovered to normal levels as the COVID-19 pandemic in Mainland China has been effectively controlled[38] - The Group's fitness business segment recorded significant losses due to the suspension of operations, with uncertainties regarding the long-term demand for fitness services[39] Government Grants and Support - The Group received approximately HK$12,927,000 from the Job Support Scheme in Singapore, which is included in profit or loss as "other income" during the reporting period[39] - The government grant related to employment for the six months ended June 30, 2021, amounted to approximately HK$12,927,000, an increase of 48.5% compared to HK$8,705,000 in 2020[77] Segment Performance - For the six months ended June 30, 2021, the pharmaceutical business generated revenue of HK$379,837,000, while the fitness business generated HK$29,818,000 from personal training classes and HK$26,465,000 from membership packages[53] - The total revenue for the six months ended June 30, 2021, was HK$436,120,000, compared to HK$430,250,000 for the same period in 2020, reflecting a slight increase[52] - The Group's fitness business segment required significant judgments and estimates to be made in calculating the recoverable amount due to indicators of impairment as at the period end[45] Discontinued Operations - The company has disposed of its interests in the cement business segment, which was presented as "discontinued operation" as of December 21, 2020[59] - The discontinued operation generated revenue of HK$255,465,000 and expenses of HK$243,562,000, resulting in a profit before taxation of HK$11,903,000[100] - The loss for the period from the discontinued operation amounted to HK$16,758,000[100] Impairment and Goodwill - The impairment assessment identified the suspension of the fitness business as an impairment indicator, leading to a review of goodwill related to Unit B[121] - An impairment loss on goodwill of approximately HK$46,358,000 has been recognized, representing 51% of the total impairment loss of HK$90,899,000[124] Financial Reporting and Compliance - The Group's accounting policies and methods of computation for the interim financial statements are consistent with those presented in the annual financial statements for the year ended December 31, 2020[45] - The application of amendments to HKFRSs in the current period had no material impact on the disclosures set out in the interim condensed consolidated financial statements[45] - The Group's financial results have been restated to reflect the discontinued operation in accordance with HKFRS 5[101]

Financial Performance - The Group's revenue for the year ended December 31, 2020, was approximately HK$1,009.1 million, representing an increase of 9.6% compared to HK$921.1 million in 2019[33]. - The Group reported a loss of HK$20.1 million for the year, compared to a profit of HK$64.3 million in 2019[33]. - The basic loss per share amounted to HK$0.76 cent, down from earnings per share of HK$0.96 cent in 2019[33]. - The Group's performance reflects challenges faced during the year, impacting profitability despite revenue growth[32]. - The loss was primarily due to an impairment in goodwill of HK$31.2 million in the fitness business, which was severely impacted by the COVID-19 pandemic[63]. - The revenue of the Group's fitness business for the year ended 31 December 2020 was HK$187.7 million, a decrease of 38.9% compared to HK$307.4 million in the previous year[87]. - The gross profit margin for the fitness business dropped from 28.8% in 2019 to 2.9% in 2020, primarily due to the COVID-19 outbreak[87]. Dividend Policy - The Board has resolved not to recommend any final dividend for the year ended December 31, 2020, consistent with the previous year[34]. - The Company has adopted a dividend policy aimed at providing stable and sustainable returns to shareholders since December 2018[35]. - The Board will consider various factors, including operational results and future prospects, when deciding on dividend proposals[36]. - The Group's financial condition and cash flows will also be taken into account in dividend decisions[36]. - There is no assurance that dividends will be declared or paid in any particular amount for any given period[37]. Business Segments - The pharmaceutical business continued to grow rapidly, outperforming the industry average, while profitability increased significantly compared to the same period in 2019[42]. - The Group's cement business was disposed of on December 21, 2020, and is presented as a discontinued operation for the year ended December 31, 2020[57]. - The Group's pharmaceutical products, Chloroquine Phosphate and Hydroxychloroquine Sulfate, were crucial in the global fight against COVID-19, contributing to considerable profits[42]. - Tongfang Pharmaceutical's revenue in 2020 was RMB339.9 million, a growth of 6.7% from RMB318.6 million in 2019, with a gross profit of RMB312.6 million, up 9.6% from RMB285.3 million[69][70]. - Shaanxi Life Care registered revenue of RMB54.4 million in 2020, a decrease of 20.0% from RMB68.0 million in 2019, with a gross profit of RMB23.2 million, down 37.3% from RMB37.0 million[77][78]. - In 2020, Chongqing Kangle registered revenue of RMB281.2 million, representing an increase of 209.0% compared to RMB91.0 million in 2019[82]. - SPF (Beijing) Biotechnology Co., Ltd. registered revenue of RMB87.9 million in 2020, an increase of 37.8% from RMB63.8 million in 2019[85]. COVID-19 Impact - The COVID-19 pandemic significantly affected the pharmaceutical industry, leading to challenges such as reduced outpatient services and logistics disruptions[65]. - Despite the challenges, Tongfang Pharmaceutical successfully coordinated resources to ensure uninterrupted production and adjusted marketing policies to mitigate the pandemic's negative impact[71]. - The fitness business in Taiwan is expected to recover to pre-COVID-19 revenue levels due to low infection rates and strong member interest in returning to gyms[49]. - The Group's fitness business in Singapore is anticipated to face challenges in 2021 without rental relief or government support[42]. - The Singapore government announced a prolonged Phase 3 reopening, which is not expected to significantly change the Group's fitness business outlook[42]. Environmental and Sustainability Initiatives - Environmental protection and product responsibility are identified as key aspects of the Group's operations[135]. - The Group's commitment to ESG includes incorporating ESG elements into daily operations and assessing their long-term impact on stakeholders[135]. - The solar energy generation project in Beijing covers over 30,000 square feet and meets the daily energy consumption of the plant, with surplus energy sold to nearby facilities[139]. - The hazardous waste management system has been renovated, employing specialized administrators to ensure compliance with safety and environmental protection processes[142]. - The company has achieved a 100% waste gas collection rate in its animal laboratory, utilizing a spray tower for purification[142]. - The company has completed the renovation of hazardous waste storage and sewage treatment facilities, ensuring compliance with emission standards[140]. - The company has fully implemented waste sorting and education programs, ensuring compliance with local waste management regulations[142]. Financial Position and Cash Flow - As of 31 December 2020, the Group maintained bank balances and cash reserves of approximately HK$165.8 million, down from HK$216.8 million in 2019[98]. - The total borrowings of the Group as of 31 December 2020 were HK$196.8 million, significantly reduced from HK$455.4 million in 2019[101]. - The gearing ratio of the Group as of 31 December 2020 was 7.7%, down from 11.4% in 2019[101]. - The Group's cash flow situation was supported by a government Job Support Scheme providing 75% wage support from April 2020 to 18 June 2020[91]. - The Group's operating cost reduction strategy has been implemented to mitigate the impact of COVID-19 on cash flows[92]. Employee and Organizational Changes - The Group had 1,221 employees as of 31 December 2020, a decrease from 1,500 employees in 2019[124]. - The Group maintains a policy of competitive remuneration packages, rewarding employees based on performance, and offering share options and awarded shares[124].

Revenue and Profitability - Revenue for the six months ended June 30, 2020, was HK$711,174,000, a decrease from HK$715,506,000 in the same period of 2019, representing a decline of 0.5%[14] - Gross profit increased to HK$359,155,000, compared to HK$330,553,000 in 2019, reflecting a growth of 8.6%[14] - Profit before taxation for the period was HK$29,228,000, down from HK$36,027,000 in 2019, indicating a decrease of 18.9%[14] - Total comprehensive income for the period was a loss of HK$81,580,000, compared to a loss of HK$65,064,000 in the previous year, reflecting a deterioration of approximately 25.4%[65] - For the six months ended June 30, 2020, the loss attributable to owners of the Company was HK$49,006,000, compared to a loss of HK$25,191,000 for the same period in 2019, representing an increase in loss of 94.5%[17] - The total comprehensive expense attributable to owners of the Company for the period was HK$67,820,000, compared to HK$25,639,000 in the previous year, indicating a significant increase of 164.5%[18] - The basic and diluted loss per share for the period was HK$0.88, compared to HK$0.45 for the same period in 2019, reflecting an increase of 95.6%[20] Expenses and Financial Position - Total comprehensive expense for the period amounted to HK$39,111,000, compared to a total comprehensive income of HK$7,230,000 in the previous year[14] - Administrative expenses rose to HK$100,243,000, compared to HK$73,314,000 in 2019, an increase of 36.8%[14] - The company experienced a tax expense of HK$41,689,000, compared to a tax benefit of HK$8,328,000 in the previous year[14] - The finance costs for the six months ended June 30, 2020, were HK$78,854,000, compared to HK$59,065,000 in 2019, reflecting an increase of 33%[136] - Current tax expenses for the six months ended June 30, 2020, totaled HK$39,061,000, compared to HK$26,883,000 in the same period of 2019, representing a 45% increase[139] Assets and Liabilities - Non-current assets decreased from HK$621,703,000 as of December 31, 2019, to HK$588,632,000 as of June 30, 2020, a decline of 5.3%[24] - Current liabilities increased from HK$1,591,032,000 at the end of 2019 to HK$1,799,559,000 by June 30, 2020, an increase of 13.1%[26] - The consolidated assets as of June 30, 2020, were HK$4,238,698,000, up from HK$4,000,172,000 as of December 31, 2019, reflecting an increase of 6%[122] - The consolidated liabilities increased to HK$2,356,346,000 as of June 30, 2020, compared to HK$2,079,124,000 at the end of 2019, marking a rise of 13%[122] - The equity attributable to owners of the Company was HK$1,882,352,000 as of June 30, 2020[27] Cash Flow and Financing - For the six months ended June 30, 2020, the net cash generated from operating activities was HK$208,092,000, compared to HK$185,310,000 for the same period in 2019, representing an increase of approximately 12.5%[69] - The company reported a net cash inflow from the redemption of loans receivables amounting to HK$2,156,218,000, up from HK$1,619,323,000 in 2019, indicating a growth of about 33%[69] - The company incurred a net cash outflow from investing activities of HK$95,016,000, compared to an inflow of HK$145,778,000 in the previous year, indicating a significant shift in cash flow dynamics[72] - New bank borrowings raised during the period amounted to HK$189,621,000, compared to HK$74,099,000 in the same period last year, showing an increase of approximately 156%[72] - The Group's bank and other borrowings amounted to HK$91,415,000 as of June 30, 2020, an increase from HK$48,305,000 on December 31, 2019[192] Segment Performance - The pharmaceutical and health business generated revenue of HK$378,657,000, while the fitness business and cement business contributed HK$277,149,000 and HK$55,000,000 respectively[115] - The fitness business saw revenue from personal training classes amounting to HK$19,552,000 and membership packages generating HK$31,583,000[115] - The cement business reported sales of HK$202,217,000, with trading of cement contributing an additional HK$53,248,000[115] - Segment results indicate that the pharmaceutical and health business remains the largest contributor to overall revenue, highlighting its importance to the company's strategy[112] Government Support and Operational Challenges - The Group received HK$8,705,000 in wage support from the Job Support Scheme (JSS) during the period, classified as "other income" in the profit or loss statement[83] - The fitness business segment experienced a loss and revenue decline due to the suspension of operations, but is expected to improve in the second half of the year as health and fitness clubs resume operations in Singapore[83] - Production capacity in the pharmaceutical and health business in China decreased by 30% to 70% from late January to March 2020 due to operational suspensions[83] - The Group recognized changes in lease payments resulting from rent concessions of HK$9,913,000 as "other income" during the six months ended 30 June 2020[90] Fair Value and Financial Reporting - The Group's financial statements include assets and liabilities that require fair value measurement and/or disclosure, impacting the overall financial position[97] - The fair value measurement of the Group's financial and non-financial assets and liabilities utilizes market observable inputs as much as possible, categorized into three levels[97] - The classification of items into fair value levels is based on the lowest level of inputs that significantly affect the fair value measurement[97] - The Group's financial reporting includes a detailed analysis of revenue from contracts with customers, which is crucial for understanding performance[105] Future Outlook and Strategic Plans - The company has plans for market expansion and new product development, although specific figures and timelines were not disclosed in the report[70] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[124]

Financial Performance - The Group's revenue for the year ended December 31, 2019, was approximately HK$1,482.3 million, a decrease of 29.2% compared to HK$2,093.7 million in 2018[20] - The profit for the year was approximately HK$65.2 million, down from HK$71.5 million in 2018[20] - Basic earnings per share amounted to HK$0.65 cent, compared to HK$0.60 cent in the previous year[20] - The Group's cement business revenue for the year ended December 31, 2019, was HK$561.2 million, a decrease of 54.4% from HK$1,230.3 million in 2018[116] - The fitness business revenue for the year ended December 31, 2019, was HK$303.9 million, down from HK$367.7 million in 2018, with a profit of HK$27.7 million compared to HK$32.2 million in the previous year[101][100] - The revenue for Tongfang Kontafarma Holdings Limited for the year ended December 31, 2019, was approximately HK$1,482.3 million, a decrease of 29.2% compared to HK$2,093.7 million in 2018[51] - The profit for the year was approximately HK$65.2 million, down from HK$71.5 million in 2018[51] Dividend Policy - The Board has resolved not to recommend any final dividend for the year ended December 31, 2019[21] - The Company adopted a dividend policy in December 2018, aiming for stable and sustainable returns to shareholders[22] - The Board will consider various factors, including operational results and financial condition, when deciding on dividend proposals[23] - There is no assurance that dividends will be declared or paid in any specific amount for any given period[24] Market and Industry Trends - The medical and pharmaceutical industry in China is facing increasing challenges, with a strong commitment to national medical reform[28] - The Group achieved steady progress in 2019 and aims for major breakthroughs in 2020 by focusing on new retail models and product R&D[28] - The number of sports service providers in Taiwan increased from 1,462 in 2013 to 2,040 in 2017, indicating a growing market[37] - The overall revenue of Taiwan's sports service industry rose from NT$21.44 billion in 2016 to NT$24.16 billion in 2017[37] - The total consumption expenditure on popular sports in Taiwan reached NT$126.22 billion in 2017, showing significant growth[37] - Singapore's fitness centre visits increased from 1.8 million to 2.5 million from 2013 to 2018, reflecting rising demand[31] - The COVID-19 pandemic has led to significant revenue impacts for the Group's operations in Singapore due to the closure of fitness centres[39] Product Development and R&D - The Group's focus on high-quality new product R&D has contributed to its achievements in the pharmaceutical sector[29] - The Group's new pharmaceutical products received positive market feedback and significant order volumes[57] - Tongfang Pharmaceutical achieved a revenue of RMB 318.6 million for the year ended December 31, 2019, representing a growth of 34.0% compared to RMB 237.7 million in 2018[63] - The gross profit for Tongfang Pharmaceutical for the year ended December 31, 2019, was RMB 285.3 million, reflecting a growth of 34.1% from RMB 212.7 million in 2018[63] - Tongfang Pharmaceutical's new product "Jing You Neng" was officially launched in 2019 and received positive market feedback[67] - In 2019, Chongqing Kangle launched Hydroxychloroquine Sulfate and entered strategic cooperation agreements with domestic pharmaceutical companies, contributing to steady growth[76] Financial Stability and Management - As of December 31, 2019, the Group's bank balances and cash reserves amounted to approximately HK$216.8 million, an increase from HK$151.8 million in 2018[124] - The Group's outstanding borrowings repayable within one year were approximately HK$455.4 million, down from HK$548.9 million in 2018, indicating a reduction of about 16.9%[128] - The gearing ratio as of December 31, 2019, was 11.4%, a decrease from 16.4% in 2018, reflecting improved financial stability[129] - The Group's total assets increased to approximately HK$4,000.2 million in 2019, up from HK$3,342.5 million in 2018, representing a growth of about 19.6%[129] - The Group's financial policy aims to minimize financial risk exposure and does not engage in speculative derivative transactions[130] Environmental Initiatives - The Group has implemented a solar power project in Beijing, covering over 30,000 square feet, to meet daily energy consumption and sell excess energy[168] - The Group's environmental initiatives include the purchase of new exhaust treatment equipment and the adoption of energy-efficient machinery to reduce emissions[168] - The Group is committed to integrating ESG elements into its daily operations and assessing their long-term impact on stakeholders[164] - The Group's strategy includes compliance with all applicable environmental requirements and continuous improvement towards industry best practices[160] - The company has implemented low nOx staged burning techniques in the kiln system and installed gas analysers for online monitoring of air pollutants[190] Employee and Operational Management - As of December 31, 2019, the Group had 1,500 employees, a decrease from 1,527 in 2018[153] - The Group maintains a competitive remuneration policy, rewarding employees based on performance with salary and bonuses[153] - The Group's business operations include manufacturing and sales of prescription drugs in China, fitness services in Singapore, and cement production in Shandong and Shanghai[163] Challenges and Regulatory Compliance - The pharmaceutical industry in China faced significant challenges in 2019, with the "4+7" procurement policy leading to an average price decrease of over 50%[89] - Chongqing Kangle is subject to stringent regulations and frequent audits due to its cGMP and WHO certifications, impacting production schedules[79] - The company aims to minimize the impact of regulatory challenges through its extensive experience[79] - Legal disputes arose regarding the profit guarantee, with claims for a balance of purchase price of US$3,500,000 under the acquisition[147]

Financial Performance - Revenue for the six months ended June 30, 2019, was HK$1,305,226,000, an increase from HK$1,142,831,000 in the same period of 2018, representing a growth of approximately 14.2%[12] - Gross profit for the period was HK$330,553,000, compared to HK$273,553,000 in 2018, indicating a gross margin improvement[12] - Profit for the period was HK$8,328,000, a decrease from HK$21,044,000 in the previous year, reflecting a decline of approximately 60.5%[12] - Total comprehensive income for the period was HK$7,230,000, down from HK$9,368,000 in 2018, showing a decrease of about 22.9%[12] - The company reported a loss attributable to owners of HK$25,191,000 for the six months ended June 30, 2019, compared to a profit of HK$33,519,000 in the same period of 2018[14] - Total comprehensive expense for the period attributable to owners was HK$25,639,000, an increase from HK$23,568,000 in 2018[14] - Basic and diluted loss per share was HK cent (0.45), compared to HK cent (0.28) in the previous year[14] - The company reported a loss for the period of HK$14,731,000, compared to a profit of HK$35,775,000 in the same period last year[22] - Total comprehensive income for the period was HK$(25,625,000), indicating a significant decline from the previous year's comprehensive income of HK$22,869,000[22] Revenue Breakdown - Revenue from the medical, pharmaceutical, and health business was HK$277,149,000 for the six months ended June 30, 2019[83] - Revenue from the fitness business was HK$159,391,000 for the six months ended June 30, 2019, compared to HK$240,337,000 for the same period in 2018[83] - Revenue from the cement business was HK$868,686,000 for the six months ended June 30, 2019, an increase from HK$684,478,000 for the same period in 2018[83] - The Group's revenue from the PRC market was HK$1,148,394,000 for the six months ended June 30, 2019[83] - Revenue from the Singapore market was HK$129,674,000 for the six months ended June 30, 2019[83] - Revenue from the Taiwan market was HK$27,158,000 for the six months ended June 30, 2019[83] Cost and Expenses - The cost of sales and services increased to HK$974,673,000 from HK$869,278,000, which is an increase of approximately 12.1%[12] - Other income for the period was HK$16,101,000, compared to HK$24,665,000 in 2018, indicating a decrease of about 34.8%[12] - The cost of inventories recognized as expenses was HK$858,638,000, compared to HK$710,809,000 in the previous year, showing a significant increase in inventory costs[116] - Total amortization and depreciation for the period was HK$72,454,000, up from HK$35,339,000 in 2018, reflecting increased asset utilization[116] Taxation and Liabilities - Taxation for the period was HK$27,699,000, significantly higher than HK$14,953,000 in the previous year, reflecting an increase of approximately 85.5%[12] - Current liabilities rose to HK$410,070,000 for trade payables and HK$158,743,000 for other payables, compared to HK$284,457,000 and HK$144,586,000 respectively in 2018[19] - The total current tax expense for the period was HK$26,883,000, compared to HK$18,900,000 in 2018, indicating higher tax obligations[113] Assets and Equity - Non-current assets decreased to HK$2,037,157,000 from HK$1,661,623,000 as of December 31, 2018[17] - Total equity attributable to owners was HK$1,368,888,000, slightly down from HK$1,393,381,000 at the end of 2018[19] - As of June 30, 2019, the total equity of the company was HK$1,917,437,000, reflecting a decrease from HK$1,901,947,000 as of June 30, 2018[22] - The company’s total assets were reported at HK$1,917,437,000, with total liabilities of HK$368,888,000[22] Market Strategy and Outlook - The company continues to focus on expanding its market presence and enhancing its product offerings, although specific new products or technologies were not detailed in the report[12] - Future outlook remains cautious due to market conditions, with a focus on cost management and operational efficiency to improve profitability[12] - The company plans to continue its market expansion and product development strategies in the upcoming quarters[23] - The company is focused on enhancing its operational efficiency and exploring potential acquisition opportunities to drive growth[24] Cash Flow and Financing - Net cash used in operating activities for the six months ended June 30, 2019, was HK$185,310, an increase from HK$121,132 in the same period of 2018, representing a 53% increase[26] - Cash and cash equivalents at the end of the period were HK$141,239, compared to HK$199,228 at the end of June 2018, reflecting a decrease of 29%[29] - Proceeds from the issuance of ordinary shares amounted to HK$74,099, while new bank and other borrowings raised were HK$200,000, indicating active financing efforts[29] - The Group obtained new bank loans and other borrowings of HK$74,099,000 during the six months ended June 30, 2019, a decrease of 59.7% compared to HK$183,911,000 for the same period in 2018[156] Accounting Policies and Changes - The Group has applied HKFRS 16 for the first time in the current interim period, which superseded HKAS 17 Leases[34] - The accounting policies and methods of computation used for the six months ended June 30, 2019, are consistent with those presented in the annual financial statements for the year ended December 31, 2018[34] - The Group's accounting policies have been updated to comply with new and amended HKFRSs[39] - The Group recognized right-of-use assets amounting to HK$623,206,000 upon the application of HKFRS 16[62] Segment Performance - The Group operates in three main segments: medical, pharmaceutical and health business; fitness business; and cement business[90] - Segment revenue from external customers for the medical, pharmaceutical, and health business was HK$277,149,000 in 2019, up from HK$240,337,000 in 2018, representing a growth of 15.8%[93] - The segment results for the fitness business decreased to HK$22,686,000 in 2019 from HK$24,388,000 in 2018, a decline of 7.0%[93] - Total segment revenue across all businesses reached HK$1,305,226,000 in 2019, compared to HK$1,142,831,000 in 2018, marking an increase of 14.2%[93] Disposal and Acquisitions - The Group disposed of its entire interest in 群真(廈門)健身休閒有限公司 for a total consideration of RMB3,000,000 (equivalent to HK$3,461,000) on February 15, 2019[196] - The net liabilities disposed of from the subsidiary amounted to HK$4,765,000, resulting in a gain on disposal of HK$8,226,000[198] - The Group acquired property, plant, and equipment at a cost of HK$43,074,000 for the six months ended 30 June 2019, an increase from HK$30,179,000 in the same period of 2018[10]

Financial Performance - The Group's revenue for the year ended December 31, 2018, was approximately HK$2,093.7 million, representing an increase of 55.8% compared to HK$1,344.3 million in 2017[25]. - The profit for the year was HK$71.5 million, up from HK$35.9 million in 2017[27]. - Basic earnings per share amounted to HK0.60 cents, compared to a basic loss per share of HK0.04 cents in 2017[27]. - The increase in net profit was primarily due to the expansion of the medical, pharmaceutical, and health business since the first half of 2018[28]. - Revenue and other gains from the fitness business increased following the acquisition of 51% of TFKT True Holdings in May 2017[28]. - The cement business also contributed to the increase in revenue for the Group[28]. - The revenue for the year ended December 31, 2018, was approximately HK$2,093.7 million, representing a year-on-year increase of 55.8% from HK$1,344.3 million in 2017[41]. - The Group's profit for the year was HK$71.5 million, compared to HK$35.9 million in 2017, with basic earnings per share of HK$0.60, a turnaround from a basic loss per share of HK$0.04 in the previous year[41]. - The increase in revenue was primarily driven by the expansion of the medical, pharmaceutical, and health business, as well as the fitness business following the acquisition of 51% of TFKT True Holdings[43]. Business Segments - For the year ended December 31, 2018, the Group was primarily engaged in the manufacturing and sales of prescription drugs and laboratory-related products in the People's Republic of China, with a focus on the Medical, Pharmaceutical and Health Business[114]. - The Group's Fitness Business includes operating fitness centers and providing consultation services in Singapore and the PRC, as well as franchise operations in Taiwan for royalty and service fee income[114]. - The Cement Business involves the manufacturing and sales of cement and clinker, along with trading activities in Shandong province and Shanghai in the PRC[114]. Market Trends and Strategies - The Group anticipates a slight decline in national cement production volume in 2019 due to downward pressure on real estate investment growth and delayed demand for new infrastructure projects[37]. - The Group's core strategy for 2019 focuses on strengthening risk controls, enhancing operational quality, and improving innovative research and development capabilities[31]. - The fitness business is expected to grow due to increasing consumer spending driven by Millennials and the active-aging segment[31]. - The Group's fitness business strategy focuses on creating large, accessible clubs with diverse equipment and specialized services to meet various member interests[75]. - The opening of the premium yoga brand "Yoga Edition" in Taipei and a fitness center in Singapore reflects the Group's market expansion efforts[73]. - The Group's Singapore fitness business is positioned in the mid-market segment, with expectations for improvement despite past performance challenges[74]. Environmental Initiatives - The Group plans to increase investment in environmental protection to enhance green production levels in the cement industry[38]. - The Group has implemented a solar energy power generation project in its Beijing plant, covering over 30,000 square feet, which fulfills the daily energy consumption requirement and reduces greenhouse gas emissions[120]. - The solar energy project is expected to commence before June 1, 2019, following a supplemental agreement with a power system engineering company[120]. - The Group aims to comply with all applicable environmental requirements and continuously improve its environmental management practices[113]. - The Board has endorsed a clear and prioritized ESG management approach aligned with the overall business strategy[113]. - The Group's environmental strategy aims to balance business operations with environmental responsibilities, requiring at least one-third of managed areas in operation plants to be green[159]. Employee and Operational Management - As of December 31, 2018, the Group had 1,527 employees, a decrease from 2,118 in 2017, and maintains a competitive remuneration policy[105]. - The Group's fitness business serves 110,000 members across 24 clubs in Singapore, PRC, and Taiwan, highlighting its significant market presence[79]. - The Group's strategy includes opening large, conveniently-located clubs to enhance member experience and cater to diverse interests[80]. - The company promotes fair competition and equal opportunities in employment, ensuring that all decisions are based on objective criteria[172]. - The remuneration scheme is comparable to local industry peers, with compliance to relevant labor laws and regulations[172]. Compliance and Safety - The company has received the Bizsafe certificate from the Occupational Safety and Health Division of Singapore, reflecting its commitment to workplace safety[177]. - Regular internal and external training sessions are conducted for employees, including CPR/AED training, with no reported instances of non-compliance to occupational safety laws during the reporting period[177]. - The company has established a drug recall policy categorizing pharmaceutical products into three levels based on the severity of harmful impacts, with affected items to be recalled within 24 hours[188]. - The company adheres to strict quality standards and has obtained GMP certification for its manufacturing facilities from the China Food and Drug Administration[186]. Community Engagement and Corporate Social Responsibility - The Group has donated over RMB 4.1 million to external parties since its establishment, contributing to community infrastructure and support for impoverished individuals[192]. - The Group has spent over HK$ 15.4 million on donations and charity work since 2008, including sponsoring uniforms and scholarships for employees' children[192]. - The company supports environmental activities in the communities where it operates, enhancing its corporate social responsibility[164].