Financial Performance - For the six months ended September 30, 2024, the Group's net profit after tax increased by 88.1% year-over-year to HK$40.3 million, while profit attributable to equity shareholders rose by 112.0% to HK$14.1 million[12]. - Revenue decreased by 2.8% to HK$2,062.9 million for the six months ended 30 September 2024, primarily due to a challenging macroeconomic environment[25]. - EBITDA increased by 18.8% to HK$247.9 million, while profit before tax rose by 60.5% to HK$56.6 million[32]. - Profit attributable to owners increased by 88.1% to HK$40.3 million, with basic earnings per share rising by 112.0% to HK$0.12[32]. - The Group recorded a profit for the period of approximately HK$40.3 million, representing an increase of 88.1% compared to the same period last year, with a net profit margin of 2.0%[84]. - The increase in income tax expense for the six months ended 30 September 2024 was approximately HK$16.3 million, reflecting an 18.0% increase compared to the same period last year[84]. Revenue Breakdown - Revenue from the medical services segment decreased by 3.7% to HK$1,264.3 million, representing 61.3% of total revenue[25]. - Revenue from aesthetic medical and beauty and wellness services decreased by 5.4% to HK$629.8 million, accounting for 30.5% of total revenue[25]. - Revenue from veterinary and other services increased by 18.3% to HK$168.9 million, representing 8.2% of total revenue[25]. - The Group's revenue and sales volume declined by 2.8% and 4.4% YoY respectively, due to decreased contributions from discretionary services amid adverse market sentiment[38]. - Revenue from the veterinary and multi-channel networking services segment increased by 18.9% year-on-year to HK$168.9 million, representing 8.2% of total revenue[125]. Cost Management - Employee benefit expenses amounted to approximately HK$474.2 million, representing 23.0% of total revenue, reflecting an 11.3% decrease compared to the same period last year due to reduced remuneration from decreased sales volume[23]. - The Group has implemented cost control measures that saved approximately HK$128 million since the baseline fiscal year 2023, aiming for further improvements in recurring costs[15]. - The Group has reduced over 123,000 square feet of service area rental since the baseline fiscal year 2023, contributing to lower overall rental costs[15]. - Cost of inventories and consumables increased by 10.4% to HK$367.0 million, attributed to acquisitions in the previous financial year[52]. - Registered Practitioner expenses decreased by 7.9% to approximately HK$543.3 million, representing 26.3% of total revenue[52]. Operational Efficiency - The Group reduced its total employee count by 469, with 219 backend and 250 frontline positions eliminated, optimizing operational efficiency[15]. - The Group's operational efficiency has improved due to the establishment of new service points compared to previous financial years[12]. - The Group aims to enhance operational efficiency to lay a solid foundation for future growth despite the revenue decline[39]. - The Group's operational efficiency improved due to newly established service points, contributing to the increase in profit margins[84]. - The Group aims to enhance operational excellence by improving talent productivity, optimizing asset utilization, and controlling costs[138]. Strategic Focus - The Group is focusing on enhancing interconnectivity within its service network and pursuing B2B, B2I, and B2G opportunities to improve patient-centric services[19]. - The Group is committed to sustainable bottom-line growth and productivity improvements following a strategic expansion phase[19]. - The Group's strategic focus includes expanding its service offerings and optimizing costs in rental and staff expenses[84]. - The Group will focus on strategic M&A opportunities to expand its healthcare ecosystem and enhance vertical integration, while maintaining a cautious approach to capital allocation[110]. - The Group's ongoing strategy includes cultivating partnerships in the TTIPP sector to reinforce its leadership in integrated healthcare services in Hong Kong[111]. Shareholder Returns - The Group declared an interim dividend of 1.0 HK cent per share, payable to shareholders on 7 January 2025[102]. - The Group will return excess cash to shareholders in the form of dividends, reflecting prudent capital management[110]. Acquisitions and Disposals - A conditional share purchase agreement was entered into for the disposal of 51% of issued share capital in New Medical Centre Holding Limited for a total consideration of HK$437,580,000[60]. - The company expects to record a net gain of approximately HK$338 million from the disposal, with an expense of about HK$1.5 million recognized in total comprehensive income[67]. - The disposal and acquisition strategy aims to better manage resources and develop the asset portfolio, allowing for reallocation of proceeds for future investment opportunities[67]. - The acquisition of HKMAI TST is classified as a connected transaction under Chapter 14A of the Listing Rules, requiring reporting and announcement but exempt from independent shareholders' approval[116]. Employee Engagement - The company has adopted various incentive schemes to reward eligible participants contributing to its operations, although specific performance metrics were not detailed[175]. - The company’s share schemes aim to provide incentives and rewards, reflecting a strategic focus on employee engagement and retention[175]. - The company is implementing stricter budgetary requirements for advertising and promotion to enhance competitiveness in the aesthetic medical, beauty, and wellness sectors[124]. Market Conditions - Consumer confidence remains lower than pre-pandemic levels, impacting revenue across segments[153]. - The Hong Kong healthcare market grew approximately 16.9% year-on-year, reaching HK$284 billion in 2023, while the private healthcare sector expanded by approximately 12.6% year-on-year to HK$110 billion[132].

Financial Performance - Total revenue for the six months ended September 30, 2024, was HKD 2,062.9 million, a decrease of 2.8% compared to HKD 2,121.3 million in the same period of 2023[2] - Net profit for the period increased by 88.1% to HKD 40.3 million, up from HKD 21.4 million in the previous year[2] - Earnings per share for equity shareholders increased by 100% to HKD 1.2, compared to HKD 0.6 in the same period last year[2] - The group recorded revenue of HKD 2,062.9 million and sales of HKD 2,084.4 million, representing a year-on-year decrease of 2.8% and 4.4% respectively[63] - Despite the slight decline in revenue, the group's net profit after tax increased by 88.1% to HKD 40.3 million, with profit attributable to equity shareholders rising by 112.0% to HKD 14.1 million[64] Liquidity and Financial Position - Cash and cash equivalents, along with time deposits, rose to HKD 822.8 million from HKD 593.1 million, reflecting a strong liquidity position[2] - Total equity increased to HKD 2,544.8 million from HKD 2,402.8 million, indicating a growth in shareholder value[2] - The debt-to-equity ratio improved to 35.0% from 38.3%, demonstrating better financial leverage management[2] - Cash and cash equivalents increased to HKD 746,390 thousand as of September 30, 2024, compared to HKD 553,625 thousand as of March 31, 2024, representing a growth of about 34.9%[11] - The company has sufficient liquidity and financial resources to meet current operational funding requirements and budget expansion plans for the next fiscal year[110] Revenue Breakdown - Revenue from veterinary and other services grew by 18.3% to HKD 168.9 million, compared to HKD 142.7 million in the previous year[2] - Revenue from aesthetic medical services decreased by 5.4% to HKD 629.8 million, down from HKD 665.7 million[2] - Medical services revenue was HKD 1,264,266, down from HKD 1,312,913, representing a decline of 3.7%[28] - Revenue from the medical services segment accounted for 61.3% of total revenue, decreasing by 3.7% to HKD 1,264.3 million for the six months ending September 30, 2024, compared to HKD 1,312.9 million in the same period last year[91] - Revenue from aesthetic medical and beauty services accounted for 30.5% of total revenue, decreasing from 31.4% year-on-year, with a revenue drop from HKD 665.7 million to HKD 629.8 million, a decline of 5.4% due to challenging market conditions[92] Cost Management - Cost optimization measures, including rent and employee expense reductions, contributed to the increase in net profit despite revenue decline[64] - The group has implemented effective cost control measures, saving approximately HKD 128 million since the fiscal year 2023[67] - Employee benefit expenses decreased to approximately HKD 474.2 million, an 11.3% decline from HKD 534.6 million, representing 23.0% of total revenue, attributed to reduced sales leading to lower salaries[99] - Marketing and advertising expenses amounted to approximately HKD 92.6 million, a decrease of 13.9% from HKD 107.5 million, accounting for 4.5% of total revenue[102] - Administrative and other operating expenses increased to approximately HKD 126.7 million, a 17.7% increase from HKD 107.6 million, representing 6.6% of total revenue, due to the expansion of service offerings[105] Strategic Initiatives - The group is focusing on enhancing operational efficiency and financial performance through strategic business alliances and improved service network connectivity[65] - The group plans to focus on three key areas for profit growth: business development, operational excellence, and digital transformation[79] - The group aims to enhance service capabilities and improve cost efficiency through digital transformation and robust data management agreements, facilitating 24/7 online booking for better customer engagement[82] - The group is committed to developing its veterinary business and addressing industry pain points to establish a leading brand in the Hong Kong market[76] - The group will continue to invest in its veterinary integrated platform, transforming it into a significant growth source[76] Asset Management - Total assets as of September 30, 2024, were HKD 4,889,577, compared to HKD 4,649,761 as of March 31, 2024, indicating an increase of 5.2%[26] - Non-current assets totaled HKD 3,793,641 thousand as of September 30, 2024, down from HKD 4,054,404 thousand as of March 31, 2024, representing a decrease of approximately 6.4%[11] - The company's goodwill increased to HKD 985,745 thousand as of September 30, 2024, from HKD 947,176 thousand as of March 31, 2024, reflecting an increase of approximately 4.1%[11] - The total number of issued ordinary shares was 1,185,211,265 as of September 30, 2024, with a nominal value of HKD 12,000,000[60] - The company has outstanding interest-bearing bank loans totaling HKD 650.0 million and convertible bonds amounting to HKD 241.8 million[129] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 1.0 per share, doubling from HKD 0.5 in the same period last year[2] - The company intends to return excess cash to shareholders in the form of dividends at an appropriate time, reflecting its commitment to maximizing shareholder returns[84] - The company declared an interim dividend of HKD 0.01 per share, payable on January 7, 2025[140] - The company will suspend share registration from January 3, 2025, to January 7, 2025, to determine eligibility for the interim dividend[141] Operational Changes - The group reduced its total workforce by 469 employees, including 219 backend and 250 frontline positions, as part of significant cost restructuring measures[67] - The group achieved a net reduction of approximately 83,000 square feet in service area, while increasing the number of service points by 8, totaling 171 service points as of September 30, 2024[68] - The group established 22 new medical facilities in the previous fiscal year, significantly increasing its operational capacity[71] - The group announced the sale of its entire stake in New Medical Centre Holdings Limited and Hong Kong Medical Advanced Imaging (TST) Limited to AIA Group Limited, highlighting a strategic adjustment and resource optimization since the acquisition in 2020[83] - Following the sale, New Medical Centre Holding Limited will no longer be a subsidiary of the company, and its financial results will not be consolidated into the company's financial statements[116]

Compliance and Governance - The company has adopted the standard rules for securities trading as per the listing rules, confirming compliance by all directors during the reporting period[1]. - The company is committed to adhering to corporate governance standards as outlined in the listing rules[9]. - The audit committee has reviewed the consolidated financial statements for the fiscal year 2024[4]. - The auditors have compared the preliminary announcement figures with the draft financial statements and found them consistent[5]. - The company emphasizes strong corporate governance principles to enhance transparency and accountability, which are crucial for its success and sustainable development[156]. Financial Performance - Total revenue for 2024 reached HKD 4,211,034, an increase of 8.7% from HKD 3,875,377 in 2023[43]. - Medical services revenue was HKD 2,631,947, up from HKD 2,542,167, reflecting a growth of 3.5%[43]. - The company reported a net profit of HKD 15.7 million, a significant decrease of 85.3% from HKD 107.0 million in the previous year[57]. - The company's profit before tax for the year 2024 was HKD 177,073,000, compared to HKD 137,204,000 in 2023, representing a year-over-year increase of approximately 29.0%[49]. - The company reported a net loss attributable to equity shareholders of HKD 18,947,000 for 2024, compared to a profit of HKD 69,654,000 in 2023[52]. Revenue and Sales Growth - Total sales for the year 2024 reached HKD 107,087,000, an increase from HKD 86,891,000 in 2023, representing a growth of approximately 23.5%[32]. - The geographical revenue from Hong Kong was HKD 3,961,934, an increase of 10.7% from HKD 3,577,659 in 2023[42]. - Aesthetic medical services and wellness revenue grew by 18.8% to HKD 1,309.4 million, compared to HKD 1,101.9 million in the prior year[57]. - The veterinary and other services segment's revenue increased by 16.6% to HKD 270 million, supported by growth in the veterinary market share in Hong Kong[108]. Assets and Liabilities - Total assets increased to HKD 5,513,330 in 2024 from HKD 5,373,054 in 2023, representing a growth of 2.6%[43]. - The company reported a total liability of HKD 3,142,385, up from HKD 2,970,283, indicating an increase of 5.8%[43]. - Cash and cash equivalents, including bank deposits, totaled HKD 553,625,000 in 2024, down from HKD 709,859,000 in 2023, indicating a decrease of about 22.0%[38]. - The asset-liability ratio stands at 38.4%, with total interest-bearing liabilities of HKD 920.7 million as of March 31, 2024[138]. Strategic Focus and Future Plans - The company plans to focus on expanding its aesthetic medical services and exploring new market opportunities in the upcoming fiscal year[57]. - The company is focusing on strategic acquisitions to enhance its service offerings and market reach in the coming years[88]. - The company aims to build a leading one-stop healthcare platform in Asia, focusing on innovation, efficiency, and sustainability to create long-term value for shareholders[126]. - The company plans to optimize its asset portfolio by disposing of non-core and underperforming assets, redeploying capital into new investments with better growth prospects[122]. Operational Efficiency and Cost Management - The company is enhancing operational efficiency by focusing on talent productivity, asset utilization, process efficiency, and cost control[113]. - The group expects significant improvement in recurring costs in future fiscal periods due to cost-saving measures that saved approximately HKD 100 million during the reporting period[103]. - The company has faced challenges in meeting original financial expectations, prompting a reassessment of its overall strategic development and risk management[128]. Employee and Training Initiatives - The company has completed mandatory internal training for employees providing medical and traditional beauty services, enhancing service quality[30]. - The group reduced its total workforce by 209 to 2,611 employees and optimized rental space, resulting in a reduction of 102,000 square feet of service area[103]. Acquisitions and Investments - The company has made significant investments, including the acquisition of 100% equity in Active Compass Limited and智凱國際有限公司 for HKD 115,000,000[141]. - The company has acquired a total of 42.88% equity in New Asia, which primarily engages in providing medical laboratory testing and distributing medical laboratory equipment and devices[143]. - The acquisition of Success Synergy Limited and Berqi Limited will allow the company to gain an additional 12.38% equity in New Asia, bringing its total ownership to approximately 55.26%[145]. Market Conditions and Economic Outlook - The group maintains a cautious optimism regarding the local economy, with the Hong Kong medical market showing resilience and a year-on-year growth of approximately 21.5% to HKD 243 billion in 2022[109]. - The company is committed to building a comprehensive healthcare ecosystem in line with the TTIPP strategy, aiming to provide high-quality customer service[118].

截 至 二 零 二 三 年 九 月 三 十 日 止 六 個 月 之 中 期 業 績 公 告 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 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 對 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 的 任 何 損 失 承 擔 任 何 責 任。 | --- | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Financial Performance - Revenue for the year ended March 31, 2023, was HK$3,875,377, an increase of 32.7% from HK$2,919,500 in 2022[8] - EBITDA for the same period was HK$430,270, down 19.8% from HK$536,364 in 2022, resulting in an EBITDA margin of 11.1%[8] - Profit before tax decreased to HK$136,189, a decline of 57.6% compared to HK$321,411 in 2022[8] - Net profit for the year was HK$107,027, down 60.5% from HK$270,503 in 2022, with profit attributable to owners of the Company at HK$69,654[8] - The Group's profit for FY23 decreased by 60.4% YoY to HK$107.0 million, with profit attributable to equity shareholders dropping 64.7% from HK$197.5 million in FY22 to HK$69.7 million[156] Assets and Liabilities - Total assets increased to HK$5,513,330, up 13.4% from HK$4,860,608 in 2022[8] - Total liabilities rose to HK$3,142,385, an increase of 25.1% from HK$2,510,052 in 2022[8] - The current ratio decreased to 0.85x from 1.11x in 2022, indicating a decline in short-term liquidity[8] - The gearing ratio increased to 30.3% from 10.1% in 2022, reflecting higher leverage[8] - Total debt increased significantly to HK$719.1 million as of March 31, 2023, from HK$235.7 million a year earlier, primarily for working capital related to new service points and acquisitions[157] Operational Expansion - The company opened a new multi-service flagship medical center and advanced imaging center in April 2022, enhancing its service offerings[3] - The company opened 21 new service points totaling over 173,000 sq ft in FY23, expanding its footprint in a favorable rental market[22] - The Group expanded its service points by 21, totaling approximately 173,000 sq. ft. in FY23, with 67.8% of the increase coming from the medical business[132] - The total number of unique customers reached 208,391, indicating a strong market presence[14] - The Group's workforce of full-time and exclusive registered practitioners increased to 313, supporting the expansion of medical services[142] Customer Metrics - The customer base showed high levels of loyalty with a repurchase rate of 82.7%[14] - Existing customer revenue contributed 66.5% to the total revenue for the year[14] - The customer satisfaction rate was reported at 99.99%, reflecting high service quality[14] Strategic Partnerships and Alliances - Strategic alliances were formed with Prudential and AXA Hong Kong & Macau, indicating a focus on expanding partnerships in the healthcare sector[3][6] - Strategic partnerships in the TTIPP sector will be strengthened to expand the integrated healthcare ecosystem, with identified acquisition targets aligned with long-term growth objectives[166] - Strategic partnerships with key players in telecom, technology, insurance, property, and pharmaceuticals are aimed at creating a more interconnected healthcare system[27] Digital Transformation and Operational Efficiency - The company has taken proactive steps to improve operational efficiency and reduce costs while maintaining investments in digital capabilities and talent[25] - The focus on operational efficiency includes exploring automation and digitization of key processes, alongside investments in data analytics and artificial intelligence[25] - The Group's focus on digital transformation is expected to enhance customer experience and operational efficiency[58] - The Group's digitization efforts include automating back-office operations to reduce errors and improve accuracy, freeing up resources for strategic initiatives[117] Sustainability and Corporate Governance - Sustainability is a critical component of the company's business strategy, focusing on minimizing environmental impact and promoting social responsibility[32] - The Group's sustainability strategy focuses on reducing carbon footprint and improving healthcare access in underprivileged communities[128] - The Group's leadership has received multiple awards for sustainability and corporate governance, reflecting its commitment to responsible business practices[55] - The Group obtained ISO 9001:2015 certification, demonstrating its commitment to high-quality service and structured risk management[158] Management and Leadership - The management team is composed of experienced professionals with backgrounds in finance, investment, and technology, ensuring a robust strategic direction for the Group[48][52][58] - The Group's leadership structure is designed to support its growth strategy and operational excellence in the competitive market[80][87] - The Group is actively expanding its management team with experienced professionals to enhance operational capabilities and strategic oversight[80][87] Mergers and Acquisitions - The company plans to drive external growth through strategic M&A opportunities to expand its healthcare ecosystem and enhance vertical integration[28] - The Group executed acquisitions valued at HK$175 million, enhancing its capabilities across various medical specialties and health screening services[143] - Revenue from M&A transactions closed during the year was HK$154.1 million, accounting for 4.0% of total revenue[131] Financial Position and Liquidity - The Group has sufficient liquid assets, with cash and deposits totaling HK$710.9 million and undrawn bank facilities of HK$220.0 million as of March 31, 2023[168] - The Group secured a HK$1.0 billion sustainability-linked syndicated loan in May 2023, which includes a revolving credit of HK$300.0 million and a term loan of HK$700.0 million[176] - A general increase/decrease of 100 basis points in interest rates would have impacted the Group's profit after taxation by approximately HK$4 million[194] Market Outlook - Management remains cautiously optimistic about the medical market's resilience, supported by public-private partnerships like the Hong Kong Government's Primary Healthcare Blueprint[161] - Despite challenges faced in FY23, the company remains dedicated to building a leading one-stop healthcare platform in Asia[33]

Financial Performance - Total revenue for the fiscal year ended March 31, 2023, was HKD 3,875.4 million, representing a 32.7% increase compared to HKD 2,919.5 million in the previous year[36]. - The company reported a net profit of HKD 107.0 million, a decrease of 60.4% from HKD 270.5 million in the previous year[36]. - Basic earnings per share decreased by 65.5% to HKD 5.9 from HKD 17.1 in the previous year[36]. - The group reported a strong internal growth rate of 24.1% across various business segments in the second half of fiscal year 2023[54]. - The total comprehensive income for the year was HKD 100,449,000, down from HKD 269,446,000 in the previous year, reflecting a significant decline[134]. - The company plans to distribute a final dividend of HKD 0.10 per share for the fiscal year, compared to HKD 0.144 per share in the previous year, indicating a reduction in shareholder returns[112]. Debt and Liquidity - Total debt increased from HKD 235.7 million as of March 31, 2022, to HKD 719.1 million as of March 31, 2023, due to increased borrowings for new service point startup costs and operational funding[5]. - The group has drawn down HKD 489.0 million in bank loans as of March 31, 2023, with an undrawn bank loan balance of HKD 220.0 million, ensuring sufficient liquidity for operational needs[8]. - The debt-to-equity ratio as of March 31, 2023, was 30.3%, up from 10.0% in the previous year[36]. - Total liabilities amounted to HKD 719.1 million, significantly higher than HKD 235.7 million in the previous year[36]. - The company reported a foreign exchange gain of HKD 1,229,000, contrasting with a loss of HKD 1,057,000 in the previous year, indicating improved currency management[134]. Revenue Segmentation - Medical segment revenue increased by 50.5% to HKD 2,542.2 million from HKD 1,689.0 million year-over-year[36]. - Revenue from completed acquisitions during the year amounted to HKD 154.1 million, representing 4.0% of total revenue[67]. - Revenue from the veterinary and other services segment increased by 66.0% year-on-year to HKD 231.3 million, primarily driven by growth in the veterinary business[70]. - The aesthetic medical, beauty, and wellness services segment's revenue increased by 1.0% to HKD 1,101.9 million, despite a decline in Hong Kong revenue due to pandemic impacts[69]. - The company’s revenue from Hong Kong was HKD 3,577,659, representing a 35.8% increase from HKD 2,632,960 in the previous year[152]. Operational Strategy - The group plans to implement cost control measures across supply chain, procurement, and administrative costs to manage rising expenses and improve profit margins[6]. - The focus on digitalization aims to enhance operational efficiency and patient experience while ensuring data privacy and security[15]. - The company aims to drive sales growth through new store openings and targeted marketing initiatives to attract and retain customers[6]. - The company is focusing on operational efficiency and cost reduction while maintaining investments in digital capabilities and talent[40]. - The company aims to create a more flexible and competitive organization to succeed in the rapidly changing healthcare industry[40]. Sustainability and Governance - The commitment to sustainable development is reflected in the group's business practices and partnerships, emphasizing its role as a leader in the healthcare sector[7]. - The group is committed to sustainability, integrating it into operations to create long-term value and reduce carbon footprint[62]. - The company emphasizes sustainable development as a key component of its business strategy, aiming to minimize environmental impact and promote social responsibility[45]. - The group has made significant progress in sustainable development, emphasizing environmental and social governance[84]. - The company emphasizes adherence to corporate governance principles, ensuring transparency and accountability in its operations[114]. Acquisitions and Growth - The group is committed to expanding its geographical coverage through strategic acquisitions, supported by the recent sustainability-linked financing[9]. - The company is committed to strategic acquisitions to drive external growth and enhance its healthcare ecosystem[44]. - The company executed acquisitions valued at HKD 175 million, covering multiple medical specialties, veterinary, and health screening services, increasing the number of registered specialist doctors to 313[73]. - The company acquired a 7.5% stake in Prime Inspire Limited for HKD 4,375,515, increasing its ownership from 70% to 77.5%[90]. - The acquisition of 60% equity in Pioneer Evolution Limited was completed for HKD 36,400,000, enhancing the company's investment portfolio[119].

Financial Performance - Revenue for the six months ended September 30, 2022, was HK$1,893,186, representing a 31.1% increase from HK$1,443,680 in 2021[10] - EBITDA for the same period was HK$269,857, down 16.6% from HK$323,427 in the previous year[10] - Profit before tax decreased by 46.3% to HK$124,394 from HK$231,718 in 2021[10] - Profit for the period was HK$105,207, a decline of 46.3% compared to HK$196,065 in the prior year[10] - Profit attributable to owners of the Company was HK$80,046, down 50.0% from HK$160,208 in 2021[10] - Basic earnings per share dropped to 6.8 HK cents, a decrease of 52.1% from 14.2 HK cents in the previous year[10] - Net profit after tax decreased by 46.3% YoY to HK$105.2 million, with a net profit margin decline of 8.0 percentage points to 5.6%[18] - Total comprehensive income for the period was HK$106,108, compared to HK$195,622 in the previous year, indicating a decrease of 45.4%[146] Revenue Breakdown - The Group reported revenue of HK$1,893.2 million, an increase of 31.1% YoY, with sales volume rising by 18.3% to HK$1,812.4 million[18] - Organic revenue grew by 22.8% YoY to HK$1,773.7 million, accounting for 93.7% of total revenue, driven by effective sales strategies[18] - The medical segment revenue increased by 47.5% YoY to HK$1,174.8 million, remaining the key growth driver for the Group[18] - Revenue from aesthetic medical and beauty and wellness services decreased by 2.0% YoY to HK$607.4 million, accounting for approximately 32.1% of total revenue[31] - Revenue from the medical services segment represented 62.1% of the Group's total revenue, increasing by 47.5% from HK$796.3 million to HK$1,174.8 million[48] - Revenue from other services increased by 301.9% YoY to HK$111.0 million, representing 5.8% of total revenue, primarily due to M&A expansion into the veterinary sector[32] Assets and Liabilities - Total assets as of September 30, 2022, increased by 7.3% to HK$5,216,260 from HK$4,860,608 as of March 31, 2022[10] - Total liabilities rose by 11.9% to HK$2,807,850 from HK$2,510,052[10] - Net assets increased by 2.5% to HK$2,408,410 from HK$2,350,556[10] - Non-current assets increased to HK$3,744,998 as of September 30, 2022, from HK$3,344,980 as of March 31, 2022, showing a growth of 11.9%[148] - Current liabilities decreased to HK$1,278,886 from HK$1,363,431, a reduction of 6.2%[148] - Net current assets improved to HK$192,376 from HK$152,197, an increase of 26.4%[148] Operational Highlights - The total valuation of M&A transactions executed during the interim period was HK$219.3 million, enhancing the Group's medical service offerings[18] - The number of unique customers increased to 122,883, with a repurchase rate of 93.7%[21] - The total number of service points reached 154, with a total aggregate gross floor area increasing by 24.1% YoY to approximately 557,000 sq. ft.[29] - The percentage of existing customers contributing to total revenue rose to 71.6% from 69.7% YoY[21] Expenses and Costs - Cost of inventories and consumables increased by 64.8% to HK$258.2 million, with its proportion to total revenue rising from 10.9% to 13.6%[52] - Registered Practitioner expenses increased by 67.4% to approximately HK$500.8 million, representing 26.5% of total revenue[52] - Employee benefit expenses were approximately HK$476.7 million, representing 25.2% of total revenue, an increase of 38.9% compared to the same period last year[58] - Marketing and advertising expenses for the same period were approximately HK$96.7 million, representing 5.1% of total revenue, with a 31.9% increase from HK$73.3 million in the previous year[58] Strategic Initiatives - The Group remains optimistic about a prudent recovery outlook despite potential recessionary market headwinds and persistent global inflationary pressures[37] - The Group plans to temporarily pause expansion in Mainland China due to limited signs of fundamental change in the stringent anti-pandemic policy[38] - The Group aims to enhance operational excellence through digital transformation and improve talent productivity via a unique corporate culture[39] - Strategic partnerships with key players in technology, telecom, insurance, property, and pharmaceuticals are being expanded to build a healthcare ecosystem[40] - The Group will continue to diversify its services portfolio within the medical and beauty sectors through accretive M&A growth[44] Shareholder Information - The Board declared an interim dividend of 5.8 HK cents per share, payable to shareholders on January 20, 2023[97] - Directors and chief executives held a total of 722,204,610 shares, representing approximately 61.18% of the total issued share capital of the Company[101] - The total number of issued shares as of September 30, 2022, was 1,180,377,267 shares[1] Corporate Governance - The Company has complied with all code provisions of the Corporate Governance Code during the Reporting Period, except for the deviation from code provision C.2.1[136] - The roles of chairman and chief executive officer have been performed by Mr. Tang, which is a deviation from the Corporate Governance Code, but the Board believes it provides strong leadership[136] - The Audit Committee reviewed the unaudited interim condensed consolidated financial statements and confirmed they were prepared in accordance with relevant accounting standards[139] Cash Flow and Investments - For the six months ended September 30, 2022, net cash generated from operating activities was HK$167,966,000, a decrease from HK$384,316,000 in the same period of 2021[159] - Net cash used in investing activities was HK$459,581,000, compared to HK$278,403,000 in the prior year, indicating increased investment outflows[159] - Cash and cash equivalents at the end of the period were HK$709,535,000, down from HK$1,471,447,000 at the end of September 2021[159]

Financial Performance - Revenue for the year 2022 reached HK$2,919,500,000, an increase of 40.4% from HK$2,080,403,000 in 2021[6] - EBITDA for 2022 was HK$536,364,000, representing an increase of 35% compared to HK$397,354,000 in 2021[6] - Profit attributable to owners of the Company for 2022 was HK$197,501,000, up from HK$192,865,000 in 2021, reflecting a growth of 2.1%[6] - Basic earnings per share decreased to 17.1 HK cents in 2022 from 18.8 HK cents in 2021, a decline of 9.04%[6] - Profit before tax for the year ended March 31, 2022, was HK$321,411,000, an increase of 20.9% from HK$265,896,000 in 2021[11] - The Group's net profit after tax for FY22 increased by 19.9% year-over-year to HK$270.5 million, although the net profit margin decreased by 1.5 percentage points to 9.3% due to business closures during the pandemic[87] - Revenue increased by 40.3% from HK$2,080.4 million for FY21 to HK$2,919.5 million for FY22, driven by significant growth in the medical segment[102] - Revenue from the medical segment rose by 64.6% from HK$1,025.9 million for FY21 to HK$1,689.0 million for FY22, accounting for 57.9% of total revenue[102] Assets and Liabilities - Total assets as of March 31, 2022, were HK$4,860,608,000, an increase of 28.2% from HK$3,790,481,000 in 2021[6] - Total liabilities increased to HK$2,510,052,000 in 2022 from HK$2,159,695,000 in 2021, marking a rise of 16.2%[6] - The Group had interest-bearing liabilities of HK$236.3 million as of March 31, 2022, resulting in a gearing ratio of 10.1%[158]. Market Position and Strategy - The company acquired 70% of the issued share capital of Premier Medical Group in November 2021, expanding its service offerings[3] - EC Healthcare was included in the MSCI Hong Kong Small Cap Index, enhancing its market visibility[4] - The Group aims to consolidate the fragmented healthcare market through corporatization and enhance operational efficiency[20] - Future strategies include diversifying one-stop healthcare services and conducting technological innovation[26] - The Group plans to grow through both organic growth and mergers and acquisitions to meet customer needs comprehensively[26] - The company aims to become a leading health platform in Asia, focusing on a diversified one-stop health service strategy[27] - The Group's strategic focus on acquisitions is aimed at expanding its market reach and enhancing its service offerings in the healthcare industry[49] Customer Metrics - Unique customers increased to 182,300 in FY22 from 155,863 in FY21, representing a growth of 16.9%[83] - Existing customers contributed 64.3% of total revenue in FY22, up from 58.9% in FY21[83] - The repurchase rate improved to 90.2% in FY22, compared to 81.0% in FY21[83] - Customer satisfaction rate remained high at 99.96% in FY22, slightly down from 99.99% in FY21[83] Operational Efficiency and Innovation - The Group's operational efficiency has been consistently raised, developing a scalable healthcare business model[26] - The company emphasizes technology innovation and customer brand loyalty as key components of its business strategy[27] - The Group is focused on building a vertically integrated healthcare ecosystem through strategic partnerships across five major areas, including technology and insurance[85] - Continuous investment in IT infrastructure is aimed at achieving service and cost leadership while maximizing synergies from acquired businesses[98] Management and Leadership - The management team includes experienced professionals with over 20 years in the healthcare and aesthetic medical industries[33][39] - The chairman expressed confidence in the company's future development, highlighting the importance of teamwork and stakeholder support[29] - The leadership team is committed to enhancing the overall management and strategic direction of the Group[74] - The management team emphasizes the importance of digital transformation in driving growth and improving service delivery in the healthcare sector[52] Sustainability and ESG Initiatives - The Group signed its inaugural dual-tranche sustainability-linked facility in 2022, marking a first for a healthcare services provider in Hong Kong[178] - The Group has identified 13 focus areas that will form the pillars of its ESG strategy, aligned with eight of the United Nations' Sustainable Development Goals[179] - The company is committed to sustainability, integrating sustainable development into its business practices and aligning with the United Nations Sustainable Development Goals[85] Acquisitions and Mergers - The total valuation of completed M&A transactions during FY22 was HK$641.1 million, enhancing the Group's medical services layout[87] - The Group's expansion strategy in medical services includes multiple acquisitions to enhance its service offerings[167] - The acquisition of Premier Medical Group (BVI) Limited was completed on December 31, 2021, for HK$100 million, expanding the Group's operations to five medical service centers in Hong Kong[164] - The acquisition of 55% equity interests in Bayley & Jackson Dental Surgeons Limited was completed for a total consideration of HK$129,423,950[174] Employee Development and Engagement - The Group continues to invest in talent development, offering a co-ownership scheme and various training programs to enhance employee skills[85] - The total number of talents participating in the Co-Ownership Plan is 126 as of 31 March 2022[198] - Females currently hold 60% of senior management roles[183] - Arranged various workshops and leisure activities for employees to promote health and wellbeing[183]

| --- | --- | --- | --- | |---------------------------------------------------|-------|-------|----------------------------------------------------------------------------------------------------------------------------| | | | | | | | | | EC Healthcare | | 2021/22 INTERIM REPORT 中期業績報告 | | 超 | 思 健 康 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:2138) | | | | | | | To bring health, beauty and happiness to everyone | | | | 讓 世 界 變 得 健 康 美麗 Aboording to réseagth by F ...

EC Healthcare 醫 思 健 康 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:2138) 2 0 2 0 / 2 1 ANNUAL REPOR E 度 報 To bring health, beauty and happiness to everyone 讓世界變得健康、美麗、快樂 Acsording to research by Frost & Sullivan, EC Healthcare is the largest non-hospital modical service provider in Hong Kong in terms of nevanue in 2020. 根據弗若斯特沙利文鋼研・浪2020年收 CONTENTS 目錄 | --- | --- | --- | |---------------------------------------------------------------|---------------------------- ...