Market Growth and Demand - The health industry in China is projected to reach a market size of over RMB 16 trillion by 2030, indicating significant growth potential[9]. - By the end of 2024, the population aged 60 and above in China is expected to exceed 290 million, creating substantial demand in the health sector[10]. - The "silver economy" market size has surpassed RMB 9 trillion, driven by the aging population and increasing health needs[10]. - The demand for preventive medicine and personalized health management is rapidly increasing among younger demographics, leading to growth in niche markets like nutritional health and genetic testing[10]. - The Chinese stem cell market is projected to reach approximately RMB 26.5 billion by 2024, indicating strong growth potential[14]. Company Strategy and Focus - The company is focusing on cell therapy and health management, leveraging its extensive experience in skin health management to optimize product offerings[12]. - The company aims to enhance its investment strategies and capitalize on emerging opportunities in the health sector amidst a challenging economic environment[12]. - The company is committed to long-term growth, emphasizing the importance of maintaining a solid operational foundation while exploring new business avenues[12]. - The company is actively seeking new opportunities and breakthroughs in the health industry, aligning with national health policies and market trends[12]. - The company is focused on exploring commercialization pathways for cell therapy products and enhancing synergies between health management and other business segments[18]. - The company aims to deepen its layout in cell therapy research and applications, responding to increasing market demand for related products[18]. Financial Performance - The company's revenue for the year ended December 31, 2024, was approximately HKD 50.7 million, a decrease of about 60.8% from HKD 129.3 million in 2023[28]. - Gross profit for the year ended December 31, 2024, was approximately HKD 28.9 million, down about 63.0% from HKD 78.1 million in 2023, with a gross margin of 57.0% compared to 60.4% in the previous year[29]. - Other income and net gains for the year ended December 31, 2024, increased to approximately HKD 53.3 million, a rise of about 114.1% from HKD 24.9 million in 2023[31]. - Total operating expenses for the year ended December 31, 2024, were approximately HKD 31.6 million, a decrease of about 19.6% from HKD 39.3 million in 2023[32]. - Profit after tax for the year ended December 31, 2024, was approximately HKD 32.0 million, down about 16.9% from HKD 38.5 million in 2023[34]. Assets and Liabilities - Non-current assets as of December 31, 2024, were approximately HKD 980.4 million, an increase of about 26.0% from HKD 778.4 million in 2023[43]. - Current assets as of December 31, 2024, were approximately HKD 688.3 million, a decrease of about 25.1% from HKD 918.8 million in 2023[43]. - The group’s net asset value as of December 31, 2024, was approximately HKD 1,201.4 million, down from HKD 1,254.3 million in 2023[42]. - The group’s total liabilities as of December 31, 2024, were approximately HKD 467.3 million, an increase from HKD 442.9 million in 2023[42]. Investment and Financing - The group remains committed to investing in the health industry, aiming to capture market opportunities in this sector[59]. - The group has established strict credit risk management and internal control procedures for its lending transactions[62]. - The group has a structured procedure for handling overdue payments, including reminders and collection actions[64]. - The group plans to explore cross-selling opportunities with Yincuan Bio, aiming for synergistic effects[112]. Corporate Governance - The company has adopted the Corporate Governance Code and has complied with all applicable code provisions during the year ending December 31, 2024[176]. - The board has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Strategic Committee to oversee various aspects of the group's operations[183]. - The independent non-executive directors have a one-year appointment term or until they retire according to company bylaws[189]. - The board has implemented a mechanism to ensure strong independence and efficiency in decision-making, which is reviewed annually[187]. Employee and Management - As of December 31, 2024, the group had approximately 46 employees, a decrease from 57 employees in 2023, with employee costs amounting to approximately HKD 13.7 million, down from HKD 14.1 million in 2023[76]. - The group has adopted a share option scheme in 2019 to attract and retain skilled employees[77]. - The Compensation Committee ensures that no director or their associates participate in determining their own remuneration[197]. Related Party Transactions - The company has entered into a financing agreement with Guangyu Zhaoneng, providing a revolving loan of up to RMB 200,000,000 at an interest rate of the one-year loan market quotation rate plus 3.05%[142]. - Guangyu Zhaoneng is controlled by a director of the company, making it a related party transaction[142]. - Independent non-executive directors have confirmed that the related transactions are conducted in the ordinary course of business and on normal commercial terms[151].

Financial Performance - Total revenue for the year ending December 31, 2024, was HKD 50,676,000, a decrease of 60.8% compared to HKD 129,304,000 for the year ending December 31, 2023[3]. - Gross profit for the year was HKD 28,905,000, down 63.0% from HKD 78,090,000 in the previous year[3]. - Net profit for the year was HKD 32,045,000, a decline of 16.8% compared to HKD 38,490,000 in the prior year[3]. - Basic and diluted earnings per share were HKD 0.79, down from HKD 1.00 in the previous year[3]. - The total comprehensive income for the year ended December 31, 2024, was HKD 32,045,000, compared to HKD 38,490,000 in the previous year, representing a decrease of approximately 16%[4]. - The company reported a total comprehensive loss of HKD 37,747,000 for the year, compared to a loss of HKD 7,604,000 in the previous year, indicating a significant increase in losses[4]. - The company reported interest income of HKD 22,045,000, an increase from HKD 18,824,000 in the previous year, reflecting a growth of about 17.5%[13]. - Profit after tax for the year ended December 31, 2024, was approximately HKD 32.0 million, a decrease of about HKD 6.5 million or approximately 16.9% from HKD 38.5 million for the year ended December 31, 2023[66]. Revenue Breakdown - Revenue from the healthcare-related business for the year ended December 31, 2024, was approximately HKD 19.6 million, a decrease of about HKD 28.5 million or approximately 59.3% compared to HKD 48.1 million for the year ended December 31, 2023[68]. - Revenue from the trading business for the year ended December 31, 2024, was approximately HKD 13.8 million, a decrease of about HKD 48.8 million or approximately 78.0% from HKD 62.6 million for the year ended December 31, 2023[69]. - Revenue from property-related business for the year ended December 31, 2024, was approximately HKD 17.2 million, a decrease of about HKD 1.4 million or approximately 7.5% compared to HKD 18.6 million for the year ended December 31, 2023[70]. - Revenue from health-related products sales reached HKD 37,791,000 in 2024, up from HKD 7,516,000 in 2023, marking a growth of 402%[21]. - Income from new energy product procurement services surged to HKD 20,841,000 in 2024, compared to HKD 1,006,000 in 2023, reflecting a growth of 1985%[21]. Expenses and Liabilities - Administrative expenses were HKD 24,615,000, slightly up from HKD 24,474,000 year-over-year[3]. - The company recognized an impairment loss of HKD 20,224,000, compared to HKD 3,962,000 in the previous year, indicating a significant increase in asset impairment[3]. - The total liabilities for the company were HKD 158,342,000, down from HKD 223,994,000 in the previous year, indicating a reduction of approximately 29%[5]. - The total liabilities included bank loans of HKD 218,645,000, which increased from HKD 137,315,000, indicating a rise of approximately 59.3%[6]. - The group reported a significant decrease in gross profit, mainly due to reduced sales in healthcare-related products and trading business, which contributed to a drop of approximately HKD 49.2 million in gross profit[61]. Assets and Equity - The company's non-current assets amounted to HKD 980,356,000 as of December 31, 2024, an increase from HKD 778,429,000 in the previous year, reflecting a growth of about 26%[5]. - The company's total assets, net of current liabilities, stood at HKD 1,510,309,000, compared to HKD 1,473,215,000 in the previous year, showing an increase of approximately 3%[5]. - The company's total equity attributable to shareholders decreased to HKD 37,341,000 from HKD 5,261,000, indicating a substantial decline in shareholder equity[4]. - The net asset value of the company was HKD 1,201,364,000, down from HKD 1,254,321,000, indicating a reduction of approximately 4.2%[6]. Strategic Focus and Future Plans - The company plans to focus on new product development and market expansion strategies to improve future performance[2]. - The company plans to expand its market presence and enhance its product offerings in the health and new energy sectors[21]. - Future guidance indicates a continued focus on increasing revenue streams from health management services and new energy products[21]. - The company aims to optimize its skincare products and business models based on years of experience in skin health management[42]. - The company is committed to research and development to improve its product efficacy and expand its service offerings[121]. Market Trends and Opportunities - The health industry is projected to reach a market size of over RMB 16 trillion by 2030, indicating significant growth potential[40]. - By the end of 2024, the population aged 60 and above in China is expected to exceed 290 million, creating substantial downstream demand for health services[41]. - The "silver economy" market size has surpassed RMB 9 trillion, driven by the aging population[41]. - The company is exploring opportunities for market expansion in both domestic and international markets[126]. Corporate Governance and Compliance - The board believes that good corporate governance is essential for effective management and has adhered to the corporate governance code during the financial year[113]. - The audit committee has reviewed the consolidated financial statements for the year ended December 31, 2024, including the accounting principles adopted[115]. - The company has established strict credit risk management and internal control procedures for its lending activities[93]. Employee and Shareholder Relations - The company expressed gratitude to its employees for their contributions and to shareholders for their trust and support[123]. - The company is committed to providing training for new employees to familiarize them with the work environment and culture[107]. - The proposed final dividend is HKD 0.4 per share for the year ended December 31, 2024, consistent with the previous year[109].

美 瑞 健 康 国 际 产 业 集 团 Meilleure Health International Industry Group 中期報告 ２０２４ Meilleure Health International Industry Group Limited 美瑞健康國際產業集團有限公司 (於百慕達註冊成立之有限公司) (股份代號：2327) 目錄 2 公司資料 3 管理層討論及分析 2 20 其他資料 3 32 董事及高級管理人員履歷 20 36 中期簡明綜合損益表 32 37 中期簡明綜合全面收益表 36 38 中期簡明綜合財務狀況表 37 40 中期簡明綜合權益變動表 38 41 中期簡明綜合現金流量表 40 42 中期簡明綜合財務報表附註 41 66 詞彙 42 66 詞彙 中期報告2024 ／ 美瑞健康國際產業集團有限公司 公司資料 | --- | --- | |-------------------------------------------------------------------------|--------------------------------------------| ...

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 30,033,000, a decrease of 59.93% compared to HKD 74,838,000 for the same period in 2023[2] - Gross profit for the same period was HKD 15,393,000, down 58.40% from HKD 36,949,000 year-over-year[2] - Net profit for the six months ended June 30, 2024, was HKD 8,230,000, a decline of 53.55% compared to HKD 17,732,000 in the previous year[3] - Basic earnings per share for the period was HKD 0.21, down from HKD 0.44 in the same period last year[2] - The company reported a net profit attributable to shareholders of HKD 8,465 million, down from HKD 18,160 million in the prior year[31] - The profit after tax for the six months ended June 30, 2024, was approximately HKD 8.2 million, a decrease of about 53.7% from HKD 17.7 million for the same period in 2023[37] Assets and Liabilities - Total non-current assets as of June 30, 2024, amounted to HKD 964,843,000, an increase from HKD 778,429,000 as of December 31, 2023[4] - Current assets totaled HKD 700,087,000, a decrease from HKD 918,780,000 at the end of the previous year[4] - The company's total assets decreased to HKD 1,428,876 thousand from HKD 1,473,215 thousand, indicating a reduction in asset base[6] - Total current liabilities increased to HKD 236,054 thousand from HKD 223,994 thousand year-over-year, with bank loans slightly rising to HKD 161,288 thousand[6] - Non-current liabilities decreased to HKD 209,438 thousand from HKD 218,894 thousand, primarily due to a reduction in bank loans[6] - The company’s equity attributable to owners decreased to HKD 1,219,486 thousand from HKD 1,254,155 thousand, reflecting a decline in retained earnings[6] Cash Flow - The company reported a net cash inflow from operating activities of HKD 109,286 thousand for the six months ended June 30, 2024, compared to a net cash outflow of HKD 83,276 thousand in the same period last year[8] - Cash and cash equivalents at the end of the period were HKD 6,643 thousand, down from HKD 65,243 thousand at the end of the previous period[8] - The company reported a significant cash outflow from investing activities amounting to HKD 201,295 thousand, compared to HKD 44,969 thousand in the previous period[8] Segment Performance - Total revenue for the six months ended June 30, 2024, was HKD 30,033 million, with a significant contribution from healthcare-related businesses at HKD 11,480 million[14] - The segment profit for healthcare-related businesses was HKD 1,100 million, while the trading business reported a profit of HKD 6,594 million[14] - Revenue from healthcare management services increased to HKD 1,933 million, up from HKD 1,226 million in the same period last year[17] - Revenue from sales of construction materials was HKD 8,718 million, a decrease from HKD 33,087 million year-over-year[17] - The trading business segment's revenue was HKD 10,327 million, contributing to the overall revenue growth[14] Investment and Financing - The company has established a financing agreement with Guangyu Zhaoneng for providing circular loan financing, effective from November 27, 2023[88] - The company reported a maximum unsecured revolving loan facility of RMB 200 million from Guangyu Zhaoneng[89] - The total outstanding loans receivable amounted to HKD 408,272,000, with a breakdown showing that HKD 214,880,000 (52.6%) is due from Guangyu Zhaoneng[60] Corporate Governance and Compliance - The company has adopted and complied with all applicable corporate governance principles as of June 30, 2024[81] - The company has adopted the standards set forth in the Listing Rules Appendix C3 regarding directors' securities trading, confirming compliance as of June 30, 2024[82] - The Audit Committee has reviewed the accounting principles and practices adopted by the group, discussing internal controls and financial reporting matters[84] Market and Business Strategy - The company is engaged in health care, building materials, new energy products trading, and real estate services, indicating a diversified business model[9] - The company plans to expand its market presence and invest in new technologies to enhance its service offerings[18] - The company aims to strengthen its international strategy and expand its overseas business, enhancing brand depth and market reach[77] Research and Development - The company has made significant progress in the field of cell therapy, with 4 cell drug clinical trial applications accepted by the National Medical Products Administration, including 2 that received implied approval for clinical trials[71] - The company has filed multiple patents related to cell therapy technologies, indicating its commitment to innovation in this field[71] - The company is exploring commercialization pathways for cell therapy products, aiming for synergistic development between health management and other business segments[72] Employee and Operational Metrics - The total number of employees decreased to 52 as of June 30, 2024, from 57 as of December 31, 2023[66] - The company’s clinics in Shenzhen and Nanjing are providing high-end health management services based on functional medicine, attracting a loyal customer base[72]

Financial Performance - The company's revenue for the year ended December 31, 2023, was HKD 129.3 million, an increase from HKD 119.9 million in 2022, primarily driven by sales of health-related products and construction materials[12]. - Gross profit increased by HKD 11.3 million, mainly due to a HKD 21.1 million increase in gross profit from trade operations, benefiting from the expansion of international trade in Europe[13]. - Health-related business segment revenue decreased by 10.6% to HKD 48.1 million, with segment profit dropping 41.9% to HKD 15.0 million, attributed to reduced sales of health-related products and increased marketing expenses[17]. - Operating expenses totaled HKD 39.3 million, up 10.1% from HKD 35.7 million in 2022, mainly due to increased marketing and transportation costs related to the proprietary brand "Bie Xiao Jian" and new energy product procurement services[15]. - The company reported a significant reduction in losses from equity investment operations, with losses decreasing from HKD 32.1 million in 2022 to HKD 4.4 million in 2023, primarily due to improved earnings from equity investment entities[18]. - The total reserves available for distribution to shareholders as of December 31, 2023, amounted to HKD 279,717,000, a decrease from HKD 341,452,000 in 2022[122]. Cash Flow and Liabilities - The net cash from investing activities was HKD 53.7 million, primarily due to the repayment of short-term interest-bearing loans of HKD 341.9 million and net cash inflow from financial product investments of HKD 35.6 million[20]. - As of December 31, 2023, the group's total liabilities amounted to HKD 442.9 million, an increase of HKD 58.7 million compared to HKD 384.2 million in 2022, mainly due to an increase in bank loans of HKD 53.2 million[38]. - The total cash and cash equivalents as of December 31, 2023, were HKD 106.3 million, a decrease from HKD 211.0 million in 2022, with approximately 91.8% denominated in RMB[39]. - The group had bank loans totaling HKD 296.6 million as of December 31, 2023, compared to HKD 243.4 million in 2022, primarily used for operational funding[40]. - The net cash used in operating activities for the year was HKD 136.5 million, primarily for settling obligations[39]. Business Strategy and Development - The company is actively expanding its international business strategy, with ongoing development of a residential project in Australia covering approximately 11,488 square meters[18]. - The company has made progress in clinical research collaborations with several hospitals, completing 17 case enrollments despite challenges posed by the COVID-19 pandemic[5]. - The company has filed for a patent cluster related to core technologies in cell therapy, with one patent for a reinfusion syringe already approved[5]. - The company has established partnerships with international raw material companies, launching multiple product lines under the "Ji Xiao Jian" brand, which are now available in 120 stores nationwide[7]. - The company is focused on integrating medical beauty projects with skincare products to provide a comprehensive and cost-effective skincare solution[7]. Employee and Corporate Governance - The group’s employee costs, including directors' remuneration, were HKD 14.1 million for the year, down from HKD 18.9 million in 2022, with the number of employees decreasing from 97 to 57[54]. - The company emphasizes the importance of recruiting and retaining experienced labor for growth and development, providing training to new employees to familiarize them with the work environment and culture[75]. - The company has adopted a stock option plan in 2019 to attract, retain, and motivate key employees, offering competitive compensation and career advancement opportunities[60]. - The company has complied with all relevant laws and regulations in China, Hong Kong, Australia, Switzerland, and Bermuda throughout 2023[59]. - The company emphasizes the importance of good corporate governance practices for effective management, focusing on transparency, accountability, and independence to protect shareholder rights and enhance shareholder value[180]. Shareholder and Stock Options - The company proposed a final dividend of HKD 0.4 per share for the year ending December 31, 2023, compared to HKD 1.6 per share in 2022[63]. - The company has approved a stock option plan to incentivize eligible employees and participants, with a total of 61,248,000 options granted on May 12, 2020[93]. - The maximum number of shares that may be issued upon the exercise of options under the 2019 stock option plan is capped at 10% of the total issued shares as of the resolution date, which amounts to 427,175,263 shares[88]. - The stock options granted will vest in four tranches over four years, with 25% vesting after 12 months from the acceptance date[93]. - The company will suspend share transfer registration from August 5 to August 6, 2024, to ensure shareholders can attend the annual general meeting and vote[64]. Investments and Strategic Partnerships - The investment in Yincuan Biotechnology amounted to HKD 53,449,000, representing 3.1% of the group's total assets of HKD 1,697,209,000 as of December 31, 2023[114]. - The group holds a 35.20% stake in Yincuan Biotechnology, indicating significant influence on the group's business performance[114]. - The board believes that the investment in Yincuan Biotechnology has significant strategic value due to its potential for cross-selling opportunities and synergies[114]. - The group has invested in stem cell product development and health management consulting services through Yincuan Biotechnology[114]. Related Party Transactions and Legal Matters - The company has not entered into any related party transactions that require disclosure under the listing rules, aside from those already mentioned[166]. - The independent non-executive directors have reviewed related party transactions and confirmed they are conducted in the ordinary course of business and on fair and reasonable terms[189]. - The company has complied with the relevant provisions of the listing rules regarding related party transactions as defined in Chapter 14A[191]. - The company has not entered into any significant contracts for the management and operation of its major business during the year ended December 31, 2023[198]. - The company has no significant legal disputes or arbitrations pending that could threaten its operations as of December 31, 2023[177].

Financial Performance - Total revenue for the year 2023 reached HKD 129,304,000, an increase from HKD 119,894,000 in 2022, representing a growth of approximately 11.7%[20] - The company reported a net profit of HKD 38,490,000 for 2023, up from HKD 17,780,000 in the previous year, representing a growth of 116.5%[37] - Earnings per share for 2023 increased to HKD 1.00, compared to HKD 0.43 in 2022[37] - The total comprehensive income for the year was HKD 20,610,000, down from HKD 30,342,000 in the previous year, indicating a decrease of 32.20%[49] - The company reported a net profit before tax of HKD 25,385,000 for the year[44] Revenue Breakdown - Revenue from health-related products was HKD 37,791,000 in 2023, down from HKD 44,647,000 in 2022, indicating a decline of about 15.5%[20] - Revenue from new energy product procurement services was HKD 20,841,000 in 2023, with no revenue reported in 2022, marking a significant new revenue stream[20] - Healthcare-related business revenue increased to HKD 32,465,000 in 2023 from HKD 31,376,000 in 2022, showing a growth of 3.47%[45] - Trading business revenue decreased to HKD 116,442,000 in 2023 from HKD 126,759,000 in 2022, reflecting a decline of 8.39%[45] - Property-related business revenue surged to HKD 195,200,000 in 2023, up from HKD 130,914,000 in 2022, marking a significant increase of 49.00%[45] Asset and Liability Management - As of December 31, 2023, the group's non-current assets amounted to HKD 778.4 million, a decrease of HKD 10.8 million from HKD 789.2 million in 2022, primarily due to a reduction in fair value investments by HKD 27.1 million[1] - Current assets totaled HKD 918.8 million, down HKD 3.2 million from HKD 922.0 million in 2022, mainly due to a decrease in bank and cash balances by HKD 104.7 million[1] - The group's total assets, less current liabilities, amounted to HKD 1,473.2 million, compared to HKD 1,574.3 million in the previous year[10] - The total assets of the company were valued at HKD 1,254,321,000 in 2023, a decrease from HKD 1,327,085,000 in 2022[39] - The asset-liability ratio as of December 31, 2023, was 15.3%, up from 5.3% in 2022, with net debt of HKD 227.4 million compared to HKD 74.6 million in 2022[113] Cash Flow and Financing Activities - The net cash used in operating activities was HKD 136.5 million, primarily for the group's operational funding needs for the year ending December 31, 2023[5] - Net cash from financing activities was HKD 18.9 million, which included new bank loan proceeds of HKD 94.5 million and dividend payments of HKD 65.5 million[6] - The group's cash and cash equivalents totaled HKD 106.3 million as of December 31, 2023, down from HKD 211.0 million in 2022, with approximately 91.8% denominated in RMB[155] - The net cash generated from investment activities was HKD 53.7 million, primarily due to cash inflows from financial product investments of HKD 35.6 million and loan interest received of HKD 28.8 million[156] - As of December 31, 2023, the total bank loans of the group amounted to HKD 296.6 million, an increase of 21.8% from HKD 243.4 million in 2022[121] Operational Efficiency - The company incurred a total of HKD 14,496,000 in employee costs, including director remuneration, in 2023, down from HKD 18,851,000 in 2022, representing a decrease of about 23.0%[25] - The total operating expenses for 2023 were HKD 39.3 million, up from HKD 35.7 million in 2022, reflecting increased investment in business operations[70] - The company experienced a significant increase in other income and gains, reaching HKD 24.9 million in 2023, compared to a loss of HKD 3.7 million in 2022[70] - The company reported a rental income of HKD 17,104,000 in 2023, down from HKD 21,709,000 in 2022, indicating a decline of approximately 21.3%[20] - The company has a strong focus on expanding its international business, with plans to enhance brand depth and broaden distribution channels[68] Investment and Strategic Initiatives - The company is actively enhancing its clinical research capabilities in cell and gene therapy, aligning with new regulatory guidelines issued in September 2023[64] - The group has established strategic partnerships in the medical beauty sector, including collaborations with Lumenis and Peninsula, enhancing its product offerings[93] - The company launched the high-end health consumer brand AlpReleaf in Europe, which is now available in 22 countries[94] - The group is focusing on cell therapy and has made strategic investments in related high-tech enterprises[90] - The company plans to leverage technology and professional services to enhance health and beauty for more people, aligning with its corporate vision[36] Corporate Governance and Compliance - The company emphasizes the importance of good corporate governance for effective management and shareholder value enhancement[195] - The company has complied with the corporate governance principles as outlined in the listing rules[170] - The financial statements for the year ended December 31, 2023, have been audited and are consistent with the reported figures[172] - The company has adopted the standards set forth in Appendix C3 for its directors' securities trading behavior, confirming compliance as of December 31, 2023[196] - The annual performance announcement and annual report will be published at the shareholders' annual general meeting[198]

Financial Performance - For the six months ended June 30, 2023, the revenue was HKD 74.8 million, an increase of 15.4% compared to HKD 64.6 million for the same period in 2022[4]. - Revenue increased by approximately 15.8% from HKD 64.6 million in the six months ended June 30, 2022, to HKD 74.8 million in the six months ended June 30, 2023[197]. - Gross profit for the six months ended June 30, 2023, was HKD 36.9 million, a decrease of 16.3% compared to HKD 44.1 million for the same period in 2022[198]. - Profit before tax increased to HKD 21.1 million from HKD 13.7 million year-on-year[196]. - Profit after tax rose to HKD 17.7 million compared to HKD 10.4 million in the same period last year[196]. - The company reported a profit attributable to owners of the company of HKD 18.2 million, up from HKD 10.6 million in the previous year[196]. - The increase in revenue was primarily driven by a HKD 21.4 million increase in sales of construction materials due to the reopening of mainland China[197]. - Sales of health-related products decreased by HKD 18.6 million, impacting overall revenue growth[197]. Operating Expenses - The total operating expenses for the six months ended June 30, 2023, were HKD 15.6 million, a decrease of 9.3% from HKD 17.2 million for the same period in 2022[8]. - Operating expenses totaled HKD 15.6 million, down from HKD 17.2 million in the previous year[196]. Revenue Breakdown - Revenue from the healthcare-related business was HKD 19.7 million, a decrease of 48.4% compared to HKD 38.2 million for the same period in 2022[10]. - The trading business revenue increased to HKD 43.3 million, a 2.7 times increase from HKD 11.8 million for the same period in 2022[10]. - The property-related business revenue was HKD 11.8 million, a decrease of 19.2% from HKD 14.6 million for the same period in 2022[11]. Financial Position - The total bank loans as of June 30, 2023, were HKD 225.3 million, down from HKD 243.4 million as of December 31, 2022[13]. - The company has no unused bank financing as of June 30, 2023[13]. - As of June 30, 2023, the total non-current assets of the group amounted to HKD 729.2 million, a decrease of HKD 60.0 million from HKD 789.2 million as of December 31, 2022, primarily due to reductions in investment properties and fair value investments[20]. - Current assets increased to HKD 963.2 million as of June 30, 2023, up by HKD 41.2 million from HKD 922.0 million as of December 31, 2022, mainly driven by an increase in prepayments and other receivables[20]. - The net asset value of the group decreased to HKD 1,225.1 million as of June 30, 2023, down by HKD 102.0 million from HKD 1,327.1 million as of December 31, 2022, primarily due to dividend distribution and foreign exchange losses[21]. - The group’s bank loans totaled HKD 225.3 million as of June 30, 2023, a decrease from HKD 243.4 million as of December 31, 2022, indicating stable cash flow and sufficient liquidity for future capital expenditures[26]. - The group’s debt-to-equity ratio increased to 16.7% as of June 30, 2023, compared to 5.3% as of December 31, 2022, reflecting a higher proportion of debt in the capital structure[34]. - The net cash used in operating activities for the six months ended June 30, 2023, was HKD 83.3 million, attributed to cash outflows for daily operations[23]. - The group’s cash and cash equivalents decreased to HKD 65.2 million as of June 30, 2023, from HKD 210.9 million at the beginning of the period, reflecting cash outflows across various activities[23]. - As of June 30, 2023, the net debt of the group was HKD 246.0 million, compared to HKD 74.6 million as of December 31, 2022[39]. - The equity attributable to the owners of the company was HKD 1,223.1 million, down from HKD 1,324.6 million as of December 31, 2022[39]. Investments and Future Plans - The company plans to invest in the industrial hemp CBD extraction and application business[15]. - The group has capital commitments of HKD 9.7 million for investments in an associated company as of June 30, 2023[35]. - The group plans to finance future acquisitions through internally generated funds and other financing activities, including bank borrowings[62]. - The company is developing a residential property project in Australia, covering approximately 11,488 square meters, with a total construction area of about 18,752 square meters[17]. - The company is expanding its operations into the Russian and Middle Eastern markets[76]. - The company is actively expanding its international strategy, with a focus on enhancing brand depth and expanding distribution channels[103]. - The company is expanding its overseas trade business, which has become a new growth point for its performance[102]. - The company aims to explore commercialization pathways for cell therapy products and enhance synergy between health management and other business segments[88]. Research and Development - Yincan Bio has received approval for clinical trials of its self-developed mesenchymal stem cell injection, marking a significant milestone in its R&D efforts[85]. - The company has applied for nearly 60 patents, including around 10 international patents, demonstrating its strong innovation capabilities in stem cell technology[85]. - Recent government policies have been introduced to support the cell therapy industry, promoting its standardized development[84]. - In the skincare sector, the company has obtained 13 patent authorizations and is focusing on developing a skincare product line based on supramolecular technology[90]. - A patent for a reinfusion syringe has been approved, and related patents for cell processing are currently under review, showcasing ongoing innovation in clinical applications[99]. Corporate Governance - The company has adopted the principles outlined in the Corporate Governance Code and complied with all applicable code provisions as of June 30, 2023[156]. - The audit committee has reviewed the accounting principles and practices adopted by the group and discussed internal controls and financial reporting matters[152]. - The company has confirmed that all directors have complied with the standards set forth in the code of conduct for securities transactions during the six months ending June 30, 2023[160]. Employee and Shareholder Information - The company has reduced its workforce to approximately 66 employees as of June 30, 2023, down from 97 employees at the end of 2022[81]. - As of June 30, 2023, a total of 7,008,000 stock options were granted under the 2019 stock option plan to two grantees, classified into two categories[115]. - The total number of shares available for issuance under the 2019 stock option plan is 427,175,263, representing about 10% of the company's issued share capital as of the mid-term report date[127]. - The stock options granted to the management consultant will vest in four equal installments over four years[117]. - The company aims to align the interests of the management consultant with those of the company and its shareholders through stock option grants[116]. - The stock options granted are contingent upon achieving certain performance targets related to research and development[122]. - The board believes that granting stock options to the management consultant will help retain their services and enhance performance[117].

於 二 零 二 三 年 報 告 期 內 百 萬 港 元 百 萬 港 元 百 萬 港 元 總 計 23.5 (23.5) – 於 二 零 二 三 年 六 月 三 十 日，未 動 用 所 得 款 項 淨 額 已 獲 悉 數 動 用。 資 產 負 債 比 率 於 二 零 二 三 年 六 月 三 十 日，本 集 團 之 資 產 負 債 比 率（即 債 務 淨 額（包 括 銀 行 貸 款、貿 易 應 付 款 項、合 約 負 債、應 計 費 用 及 其 他 應 付 款 項 以 及 應 付 關 聯 人 士 款 項，減 銀 行 及 現 金 結 餘）除 以 本 公 司 擁 有 人 應 佔 權 益 及 債 務 淨 額 之 總 和 的 百 分 比）為16.7%（二 零 二 二 年 十 二 月 三 十 一 日：5.3%）。 於 二 零 二 三 年 六 月 三 十 日，本 集 團 擁 有 債 務 淨 額246.0百 萬 港 元（二 零 二 二 年 十 二 月 三 十 一 日：74.6百 萬 港 元），而 本 公 司 擁 有 人 應 佔 權 益 為1,223.1百 萬 港 元（二 零 二 二 年 十 二 月 三 十 一 日：1,324. ...

Financial Performance - Revenue decreased by approximately 52.6% from HKD 253.0 million in 2021 to HKD 119.9 million in 2022[138]. - Gross profit was HKD 66.8 million in 2022, down 33.8% from HKD 100.9 million in 2021, while gross margin increased from 39.9% to 55.7%[139]. - The decline in revenue was primarily due to a downturn in the mainland China real estate market, resulting in a decrease of HKD 113.3 million in construction materials sales and HKD 24.5 million in property sales and consulting services[138]. - Profit before tax decreased from HKD 85.7 million in 2021 to HKD 25.4 million in 2022[137]. - Profit after tax decreased from HKD 60.5 million in 2021 to HKD 17.8 million in 2022[137]. - Profit attributable to owners of the company decreased from HKD 60.3 million in 2021 to HKD 17.8 million in 2022[137]. - The company's revenue for the year ended December 31, 2022, was HKD 119.9 million, a decrease from HKD 253.0 million in 2021[171]. - Gross profit decreased by HKD 34.1 million, primarily due to a downturn in the real estate market in mainland China, leading to a reduction in gross profit from property-related and trading businesses by HKD 20.0 million and HKD 18.1 million, respectively[172]. - The fair value of investment properties as of December 31, 2022, was HKD 560,149,000, with a fair value gain of approximately HKD 13,581,000 for the year[161]. - The balance of properties under development for sale as of December 31, 2022, was HKD 256,519,000, which is significant for the financial statements[165]. Corporate Governance - The auditor has issued an unqualified opinion regarding the group's continuing connected transactions, confirming compliance with the relevant listing rules[3]. - The group maintains sufficient public float, with over 25% of its issued share capital held by the public as of the report date[8]. - The company has reviewed its compliance with corporate governance codes and the disclosure of its corporate governance report[26]. - The company emphasizes a commitment to corporate governance and transparency in its operations[51]. - The company has a policy for assessing the independence of independent non-executive directors, confirming all were deemed independent[47]. - The company secretary is responsible for governance matters and ensures compliance with applicable laws and regulations[101]. Board of Directors and Committees - The board of directors held four meetings during the year, with all members present at each meeting[17]. - Independent non-executive directors have confirmed their independence in accordance with listing rules, ensuring professional oversight of the company's operations[18]. - The company has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Strategic Committee to oversee various aspects of the business[21]. - The Remuneration Committee consists of one executive director and two independent non-executive directors, responsible for recommending remuneration policies for the board and senior management[34]. - The board has mechanisms in place to ensure strong independence and efficiency in decision-making, allowing directors to seek independent professional advice as needed[29]. - The Compensation Committee held one meeting during the year ended December 31, 2022, with a full attendance rate of 100% for its members[39]. - The Nomination Committee, consisting of one executive director and two independent non-executive directors, also held one meeting during the same period, achieving a 100% attendance rate[46]. - The Audit Committee conducted four meetings in the year ended December 31, 2022, with all members attending 100% of the meetings[54]. - The Audit Committee reviewed the audited financial statements for the year ended December 31, 2021, and the interim financial statements for the six months ended June 30, 2022, providing recommendations to the Board[55]. - The strategic committee did not hold any meetings during the year ended December 31, 2022[57]. Health Industry and Strategic Initiatives - The health industry in China is projected to reach a market size of RMB 16 trillion by 2030, driven by increasing health awareness and government support[117]. - The company has strategically invested in the cell therapy sector, including a stake in a national high-tech enterprise and the establishment of a new entity focused on cell immunotherapy[120]. - The government has introduced multiple supportive policies for the cell industry, marking a new phase for clinical research and application[121]. - The company aims to integrate technology and professional services to enhance health and beauty, focusing on consumer medical care and skin health management[118]. - The company has launched the "Smart Skin Care" concept under its new skincare brand "肌小簡," which combines 60% light medical aesthetics and 40% efficient skincare products[128]. - The company has established a strategic partnership with Lumenis, a global leader in laser beauty, to enhance its medical beauty equipment offerings[128]. Financial Position and Liquidity - As of December 31, 2022, the company reported current assets of HKD 922.0 million, including cash and bank balances of HKD 211.0 million[133]. - The total bank loans amounted to HKD 243.4 million as of December 31, 2022, compared to HKD 168.7 million in 2021, primarily used for working capital[191]. - The group has sufficient liquidity and financial resources to meet future capital expenditures and operational needs[193]. - The net cash generated from operating activities was HKD 43.2 million, primarily used for the group's working capital needs for the year ended December 31, 2022[189]. - The net cash used in investing activities was HKD 134.8 million, mainly due to short-term interest-bearing loans provided to independent third parties[193]. - The financing activities generated a net cash inflow of HKD 41.9 million, mainly from new bank loans of HKD 141.2 million[191]. Market Challenges and Future Outlook - The decline in revenue was primarily due to a downturn in the mainland China real estate market, resulting in a decrease of HKD 113.3 million in construction materials sales and HKD 24.5 million in property sales and consulting services[138]. - The company is optimistic about future business development, citing improvements in China's economy and expectations for continued growth in overseas operations[133]. - The company plans to focus on expanding its health-related product offerings, particularly skincare products launched under the brand "肌小簡" in the second half of 2021[138]. - The company plans to continue its internationalization strategy, focusing on brand building and channel expansion to foster new business growth points[133].

Financial Performance - Total revenue for the year ended December 31, 2022, was HKD 119,894,000, a decrease of 52.7% compared to HKD 253,031,000 in 2021[37] - Gross profit for the same period was HKD 66,761,000, down 33.8% from HKD 100,929,000 in the previous year[37] - The company reported a net profit of HKD 17,780,000 for 2022, a decline of 70.7% from HKD 60,456,000 in 2021[37] - Basic earnings per share for 2022 were HKD 0.43, compared to HKD 1.42 in 2021, reflecting a significant decrease[37] - The company reported a segment profit of HKD 26,032,000 for the year ended December 31, 2022, compared to a loss of HKD 32,065,000 in 2021[46] - The company’s total equity decreased to HKD 1,327,085,000 in 2022 from HKD 1,430,645,000 in 2021, representing a decline of approximately 7.2%[40] - The company's net profit attributable to shareholders for 2022 was HKD 17,822,000, a decrease of 70.4% compared to HKD 60,323,000 in 2021[91] - The after-tax profit for the year ended December 31, 2022, was HKD 17.8 million, a decrease of 70.6% from HKD 60.5 million in 2021, mainly due to reduced gross profits in property-related and trading businesses[149] Revenue and Profitability - The company reported a loss from joint ventures and associates of HKD 14,774,000 for the year[37] - The fair value gain from investment properties was HKD 13,581,000, down from HKD 15,190,000 in the previous year[37] - The property-related business generated revenue of HKD 29.0 million for the year ended December 31, 2022, a decrease of 43.5% from HKD 51.3 million in 2021, largely due to a downturn in the mainland Chinese real estate market[154] - The company reported a significant loss in its property-related business, shifting from a profit of HKD 18.2 million in 2021 to a loss of HKD 32.1 million in 2022, driven by adverse market conditions[155] - Revenue decreased by approximately 52.6% from HKD 253.0 million for the year ended December 31, 2021, to HKD 119.9 million for the year ended December 31, 2022, primarily due to a downturn in the real estate market in mainland China[167] - Gross profit decreased by HKD 34.1 million, mainly due to declines in property-related and trading businesses, which saw gross profit reductions of HKD 20.0 million and HKD 18.1 million, respectively[168] Assets and Liabilities - Non-current liabilities increased to HKD 247,238,000 in 2022 from HKD 195,489,000 in 2021, representing a rise of 26.4%[22] - The company’s total assets decreased to HKD 1,574,323,000 in 2022 from HKD 1,626,134,000 in 2021, reflecting a decline of approximately 3.2%[39] - The company’s total liabilities increased to 384,176 thousand HKD in 2022 from 306,349 thousand HKD in 2021, representing an increase of about 25.4%[74] - The total bank loans amounted to HKD 243.4 million, up from HKD 168.7 million in the previous year, primarily used for working capital[186] - The company's asset-liability ratio was 5.3%, compared to -4.5% in the previous year, indicating a shift towards a more leveraged position[194] Cash Flow and Financing - Cash and cash equivalents decreased to HKD 210,987,000 in 2022 from HKD 272,591,000 in 2021, a reduction of about 22.6%[39] - The financing costs for the year ended December 31, 2022, were HKD 11.4 million, an increase of 35.7% from HKD 8.4 million in 2021, primarily due to higher average bank loan balances[148] - The interest expense on bank loans rose to HKD 11,113,000 in 2022 from HKD 8,277,000 in 2021, marking an increase of 34.0%[82] - The group has approximately HKD 23.5 million of unutilized net proceeds from share placements, expected to be fully utilized by December 31, 2023[192] - The group has allocated funds for investment in various financial products to enhance liquidity and interest income[199] Strategic Initiatives and Market Outlook - The health industry in China is projected to expand significantly, with a market size expected to reach RMB 16 trillion by 2030[102] - The company has made strategic investments in cell therapy, including a stake in a national high-tech enterprise and the establishment of a new entity focused on cell immunotherapy[104] - The company launched a new skincare brand, "肌小簡," which combines medical aesthetics and skincare, promoting a 60% light medical aesthetic and 40% simplified skincare approach[110] - The company is actively pursuing international expansion, enhancing brand building and channel development to foster new business growth points[114] - The health industry received strong governmental support, with total health expenditure in China reaching RMB 2.2542 trillion in 2022, a year-on-year increase of 17.8%[130] - The company aims to integrate online and offline services in the skincare sector, focusing on scientific skincare and high-efficiency products[112] - The company has established partnerships with international ingredient suppliers to enhance its product offerings in the skincare market[111] - The company continues to invest in skin health management, striving to reshape skincare habits and industry dynamics through innovation[112] - The company has received approval for clinical trials of its Class I biological product, "Human Umbilical Cord Mesenchymal Stem Cell Injection," indicating progress in its R&D efforts[134] - The company has filed over 50 patents, including nearly 10 international patents, showcasing its commitment to innovation in the cell therapy sector[134] - The company has established a flagship store for its "Jixiao Jian" light medical beauty brand, which has received positive customer feedback for its integrated skincare solutions[139] - The company is expanding its market presence in Australia with the launch of a new luxury townhouse project in Yarrabend, Melbourne[141] - The company is focusing on the commercialization of cell therapy products and aims to synergize its health management business with other segments[136] - The company anticipates a new era post-COVID-19, with both opportunities and challenges arising from changes in the international environment and the overall improvement of China's economic situation[142] Operational Efficiency - Administrative expenses decreased to HKD 29,682,000 from HKD 37,394,000, a reduction of 20.8%[37] - Operating expenses for the year ended December 31, 2022, totaled HKD 35.7 million, a decrease of 16.4% from HKD 42.7 million in 2021, attributed to effective cost control measures[148] - The company recorded a foreign exchange loss of HKD 5,565,000 in 2022, an improvement from a loss of HKD 9,936,000 in 2021[81] - The impairment loss on trade receivables was reported at 239 thousand HKD, a decrease from 919 thousand HKD in the previous year, showing a reduction of approximately 74.0%[64] - The provision for trade receivables increased to HKD 2,638,000 in 2022 from HKD 2,534,000 in 2021, reflecting a rise of 4.1%[94]