Credit Risk Management - The company has established strict credit risk management and internal control procedures for its lending transactions[3] - The credit risk assessment process includes evaluating the financial status, loan purpose, shareholder background, and business reputation of new clients[3] - The company conducts regular reviews of overdue amounts and takes follow-up actions to minimize credit risk[6] - The financial department prepares monthly aging analysis of debtors to closely monitor credit risk[6] - The company emphasizes the importance of due diligence and creditworthiness in its lending practices[3] Loan Approval Process - The management team is responsible for approving smaller loan amounts, while larger loans require board discussion and approval[5] - Any potential loans involving related parties will be reported to the board for assessment and compliance with listing rules[5] - The company aims to ensure that all lending transactions align with the overall interests of the company and its shareholders[5] Overdue Payment Handling - The company has implemented a structured procedure for handling overdue payments, including reminders and collection actions[6] - The financial department reports the status of the loan portfolio to the CEO monthly for monitoring purposes[6]

Financial Performance - The company's revenue for the six months ended June 30, 2022, was HKD 64.6 million, a decrease of approximately 54.2% from HKD 141.1 million for the same period in 2021[8]. - Gross profit for the same period was HKD 44.1 million, down 29.0% from HKD 62.1 million in 2021, while the gross profit margin increased from 44.0% to 68.2%[11]. - The company reported a profit attributable to owners of the company of HKD 10.6 million for the six months ended June 30, 2022, compared to HKD 43.2 million in 2021[9]. - The after-tax profit for the six months ended June 30, 2022, was HKD 10.4 million, a decrease of 76.0% compared to HKD 43.3 million for the same period in 2021[18]. - The total comprehensive loss for the period amounted to HKD 42,301,000, compared to a total comprehensive income of HKD 38,430,000 in 2021[140]. - The company reported a net profit of HKD 10,562,000 for the six months ended June 30, 2022, compared to HKD 43,190,000 for the same period in 2021, indicating a significant decrease[200]. Revenue Breakdown - The decline in revenue was primarily due to a downturn in the real estate market in mainland China, leading to a decrease in sales of construction materials and property sales by HKD 65.8 million and HKD 17.9 million, respectively[8]. - Revenue from the healthcare-related business increased 3.2 times to HKD 37.9 million, with profit rising 8.8 times to HKD 27.5 million, primarily due to the launch of the skincare brand "肌小簡" in the second half of 2021[19]. - Revenue from the trading business decreased by 84.9% to HKD 11.7 million, with profit down 41.5% to HKD 9.3 million, mainly due to the overall downturn in the real estate market in mainland China[22]. - Revenue from the sales agency business fell by 82.5% to HKD 3.8 million, resulting in a loss of HKD 0.1 million, attributed to the sluggish real estate market in mainland China[23]. - Revenue from the industrial hemp business plummeted by 98.7% to HKD 0.3 million, with a loss of HKD 2.1 million, due to the ban on industrial hemp in cosmetics in mainland China[26]. - Revenue from the sale of healthcare-related products was HKD 33,841,000 for the six months ended June 30, 2022, compared to HKD 20,000 for the same period in 2021, showing a substantial increase[183]. Operating Expenses and Costs - Operating expenses for the six months ended June 30, 2022, were HKD 17.2 million, a reduction of 22.9% from HKD 22.3 million in 2021, attributed to effective cost control measures[15]. - Financing costs increased to HKD 4.9 million, up 14.0% from HKD 4.3 million in 2021, primarily due to an increase in the average balance of bank loans[16]. - The company incurred financing costs of HKD 4,890,000 during the reporting period[183]. Assets and Liabilities - Non-current assets decreased to HKD 823.6 million as of June 30, 2022, down HKD 37.7 million from HKD 861.3 million at the end of 2021[28]. - Total liabilities increased to HKD 373.5 million as of June 30, 2022, up HKD 67.2 million from HKD 306.3 million at the end of 2021, primarily due to an increase in bank loans[31]. - Total net assets decreased to HKD 1,354.0 million as of June 30, 2022, down HKD 76.7 million from HKD 1,430.7 million at the end of 2021, mainly due to share buybacks and foreign exchange losses[32]. - Current assets were HKD 903,973,000, an increase from HKD 869,690,000 at the end of 2021[142]. - Total liabilities as of June 30, 2022, were HKD 260,590,000, compared to HKD 195,489,000 at the end of 2021[144]. Cash Flow - As of June 30, 2022, the group's cash and cash equivalents totaled HKD 138.9 million, a decrease from HKD 272.6 million as of December 31, 2021[34]. - For the six months ended June 30, 2022, net cash generated from operating activities was HKD 68.0 million, primarily due to cash inflows from daily operations[35]. - The net cash used in investing activities was HKD 242.7 million, mainly due to short-term interest loans of HKD 345.6 million to independent third parties[35]. - The cash and cash equivalents decreased by HKD 126,032 thousand, contrasting with an increase of HKD 32,586 thousand in the same period last year[149]. Strategic Focus and Future Plans - The company plans to continue focusing on health-related products and expand its market presence in response to changing consumer demands[12]. - The company aims to leverage its R&D, brand, and channel advantages in skin health management to develop effective skincare products and medical beauty combined business models[68]. - The company is actively pursuing clinical research collaborations with several hospitals, completing 17 case enrollments despite challenges posed by the COVID-19 pandemic[73]. - The company is focusing on expanding its industrial hemp business, with a strategic investment in CBD vaporizer technology and the launch of the high-end health consumer brand AlpReleaf in Europe[75]. - The company aims to build a sustainable revenue growth source by maintaining its leading position in the industrial hemp value chain[76]. Corporate Governance and Compliance - The company has adopted the principles of the Corporate Governance Code as per the Listing Rules Appendix 14[118]. - The audit committee consists of two independent non-executive directors and one non-executive director, overseeing financial reporting and internal controls[120]. - The company has confirmed compliance with the standards set forth in the Model Code for Securities Transactions by Directors of Listed Issuers[119]. Stock Options and Shareholder Information - A total of 12,603,000 stock options were granted to twelve participants under the 2019 stock option plan[89]. - The stock options granted to directors of investment entities are contingent upon achieving specific performance targets related to drug development and financial performance by 2020, 2022, and 2023[92]. - The total number of stock options granted to nine directors and senior management is 1,512,000, which do not require performance targets[94]. - The company has a total of 427,175,263 shares available for issuance under the 2019 stock option plan, representing approximately 10% of the issued share capital as of the interim report date[97].

Market Overview - The Chinese health market reached a scale of RMB 13 trillion in 2020, making it the second largest globally[23]. - In 2021, China's GDP per capita was RMB 80,976, equivalent to approximately USD 12,551, surpassing the global average[23]. Company Strategy and Investments - The company has strategically invested in Yinguang Biotechnology and established Meikang in 2020 to enhance its position in cell therapy and immune therapy[26]. - The company is focusing on skin health management, developing effective skincare products and combining them with medical aesthetics[24]. - Yinguang Biotechnology has made significant progress in stem cell drug development, establishing multiple product pipelines for various diseases[27]. - The company has received a new invention patent for a CAR-T technology that shows improved binding and efficacy compared to traditional methods[28]. - The Shenzhen government has prioritized legislation for cell and gene industries, indicating strong local support for the sector[26]. - The company is positioned to leverage its first-mover advantage in the cell therapy industry as supportive policies are implemented[27]. - The company aims to drive growth through technological advancements and professional services in health and beauty[24]. - The company is committed to long-term development in the health industry, aligning with national strategies like "Healthy China 2030" and the 14th Five-Year Plan[24]. Financial Performance - The company's revenue for the year ended December 31, 2021, was HKD 253.0 million, a decrease of approximately 4.6% from HKD 265.1 million in 2020[43]. - Gross profit for the year was HKD 100.9 million, down 9.3% from HKD 111.3 million in 2020, with a gross margin decline from 42.0% to 39.9%[44]. - Other income and net gains decreased by 32.2% to HKD 21.9 million, primarily due to unfavorable foreign exchange impacts, shifting from a gain of HKD 5.2 million in 2020 to a loss of HKD 9.9 million in 2021[46]. - Total operating expenses were HKD 42.7 million, a reduction of 15.3% from HKD 50.4 million in 2020, mainly due to the sale of clinics in Hong Kong and Shanghai[47]. - Financing costs decreased by 38.7% to HKD 8.4 million, attributed to a reduction in average bank loan balances compared to 2020[48]. - Profit after tax for the year was HKD 60.5 million, a decrease of 28.9% from HKD 85.1 million in 2020, primarily due to the absence of one-time gains recorded in the previous year[49]. Business Segments - Revenue from the industrial hemp business increased by 4.3% to HKD 26.5 million, with segment profit rising 35.0% to HKD 5.4 million[51]. - Revenue from healthcare-related businesses decreased by 48.0% to HKD 28.5 million, with segment profit declining 14.9% to HKD 12.0 million[52]. - Trade business revenue increased by 9.6% to HKD 146.8 million, but segment profit decreased by 35.0% to HKD 14.7 million due to various financial impacts[54]. Asset and Liabilities - The group's non-current assets increased to HKD 861.3 million as of December 31, 2021, from HKD 742.7 million in 2020, primarily due to an increase in fair value investments[64]. - Total current assets decreased to HKD 875.7 million as of December 31, 2021, from HKD 960.2 million in 2020, mainly due to a reduction in prepayments and other receivables[64]. - The group's total liabilities increased to HKD 306.3 million as of December 31, 2021, from HKD 299.6 million in 2020, primarily due to an increase in bank loans[64]. - The group's net asset value increased to HKD 1,430.7 million as of December 31, 2021, from HKD 1,403.3 million in 2020, driven by a profit of HKD 60.5 million for the year[65]. Cash Flow and Investments - The net cash used in operating activities was HKD 83.3 million for the year ended December 31, 2021, primarily for working capital needs[67]. - The net cash generated from investing activities was HKD 161.6 million, mainly from fund and financial product investments[70]. - The group has 100% ownership of a residential development project in Australia, with approximately 80% of the civil works completed as of December 31, 2021[58]. - The group's investment portfolio increased to HKD 315.0 million as of December 31, 2021, up from HKD 193.1 million in 2020, reflecting a strategic focus on health-related investments[84]. Employee and Governance - The employee count increased to 138 as of December 31, 2021, from 116 in 2020, reflecting growth in operations[87]. - The company emphasizes the importance of employee relations, offering competitive compensation and continuous training programs[101]. - The company has adopted a stock option plan to attract and retain key employees[101]. - The company has established service contracts with its directors, with terms ranging from one to three years, allowing for termination with written notice[141]. - The company has not established a corporate governance committee; thus, the board is responsible for executing corporate governance functions[190]. Shareholder Information - As of December 31, 2021, the total shares held by Mr. Zhou Xuzhou amounted to 2,251,534,761 shares, representing 53.43% of the issued shares[144]. - Dr. Zeng Wentao holds 75,000,000 shares, which accounts for 1.78% of the issued shares[144]. - The major shareholder U-Home Group International Limited holds 964,172,530 shares, representing 22.88% of the issued shares[153]. - The total amount of distributable reserves as of December 31, 2021, was HKD 361,216,000, an increase from HKD 342,662,000 in 2020[131]. Corporate Governance and Compliance - The company has adopted the corporate governance code principles and complied with all applicable code provisions during the fiscal year ending December 31, 2021[184]. - The board held four meetings during the fiscal year to discuss and formulate the overall strategy and review financial performance[189]. - All independent non-executive directors have confirmed their independence in accordance with the listing rules[188]. - The company has a policy in place for reviewing dividend policies[196].

美 瑞 健 康 国 际 产 业 集 团 Meilleure Health International Industry Group 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) 中期報告２０２１ 一份專注 兩倍用心 三倍高效 十重保障 百倍體驗 終身受益 美瑞健康——精準健康管理 目錄 管理層討論及分析 3 其他資料 16 董事及高級管理人員履歷 23 獨立審閱報告 26 中期簡明綜合損益表 28 中期簡明綜合全面收益表 29 中期簡明綜合財務狀況表 30 中期簡明綜合權益變動表 32 中期簡明綜合現金流量表 33 中期簡明綜合財務報表附註 34 1 公司資料 2 中期報告 2021 美瑞健康國際產業集團有限公司 公司資料 | --- | --- | |---------------------------------|------------------------------------------------| | 董事會 | 註冊辦事處 | | 執行董 ...

美 瑞 健 康 国 际 产 业 集 团 Meilleure Health International Industry Group 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) 2020 年報 一份專注 兩倍用心 三倍高效 十重保障 百倍體驗 終身受益 美瑞健康——精準健康管理 目錄 | --- | --- | |--------------------------|-------| | | | | 公司資料 | 2 | | 聯席主席報告書 | 3 | | 管理層討論與分析 | 9 | | 董事會報告 | 20 | | 企業管治報告 | 34 | | 環境、社會及管治報告 | 48 | | 董事及高級管理層履歷 | 97 | | 獨立核數師報告 | 100 | | 經審核綜合財務報表 | | | 綜合損益表 | 104 | | 綜合損益及其他全面收益表 | 105 | | 綜合財務狀況表 | 106 | | 綜合權益變動表 | 108 | | 綜合現金流量表 | 109 | | 綜合財務報表附註 | 111 | | 五年財務摘要 | 20 ...

--- 美 瑞 健 康 国 际 产 业 集 团 Meilleure Health International Industry Group 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) 一份專注 兩倍用心 三倍高效 十重保障 百倍體驗 終身受益 美瑞健康——精準健康管理 中 期 報 告 2020 目錄 公司資料 2 管理層討論及分析 3 其他資料 29 董事及高級管理人員履歷 45 獨立審閱報告 51 中期簡明綜合損益表 53 中期簡明綜合全面收益表 54 55 | --- | --- | |-------|------------------------| | | | | | 中期簡明綜合財務狀況表 | | | 中期簡明綜合權益變動表 | | | 中期簡明綜合現金流量表 | | | | 57 58 中期簡明綜合財務報表附註 59 1 美瑞健康國際產業集團有限公司 | --- | --- | |--------------------------------- ...

Business Strategy and Growth - The Group's strategy, termed "one core and two wings," focuses on high-end health management driven by cannabinoid and cell health applications[12]. - During the reporting period, the Group emphasized a coordinated growth mechanism combining organic growth and external expansion[12]. - The Group's vision is to maintain a healthy future by investing in healthcare, focusing on health management and industrial hemp as core operations[12]. - The Group's strategic initiatives are aligned with the broader trends in the healthcare industry, particularly in the context of regulatory changes and market demand[12]. - The Group's health management business strategy emphasizes continuous R&D capabilities and a rich product line to enhance competitiveness[26]. - The Group is focusing on capturing market opportunities in the industrial hemp sector, particularly in healthcare and consumer goods, as legalization accelerates globally[105]. Financial Performance - The Group recorded a turnover of HK$234.8 million during the Reporting Period, representing a 1.9% increase compared to 2018[17]. - Revenue from the health management business decreased by 10.0% compared to 2018, primarily due to the impact of social movements in Hong Kong[17]. - Revenue from clinics in Mainland China grew by over 100% compared to 2018, contributing positively to the overall performance[17]. - The Group achieved a net cash flow from operating activities growth rate of 41.9% compared to 2018[17]. - The Group recorded a loss attributable to owners of the parent of HK$20.2 million for the year ended December 31, 2019, compared to a profit of HK$80.5 million in 2018[48][50]. - Gross profit for the year ended December 31, 2019 was HK$71.8 million, representing a decrease of 20.4% compared to HK$90.2 million in 2018, with a gross profit margin declining to 30.6% from 39.1%[44][46]. - Total operating expenses for the year ended December 31, 2019 were HK$39.9 million, an increase of 20.2% from HK$33.2 million in 2018[47][49]. Investments and Acquisitions - The Group acquired a 45% stake in Shenzhen Wingor Biotechnology Co., Ltd., enhancing its R&D capabilities in health management[19]. - The Group acquired a 5.55% equity interest in Yunnan Hansu, increasing its total shareholding to 25.55%, reinforcing its first-mover advantage in the industrial hemp extraction field[25][27]. - The Group established a joint venture with Shenzhen Mason Vap Technology Co., Ltd to integrate its industry advantages with Masonvap's manufacturing experience[28][29]. - The Group plans to invest not less than HK$100 million to establish an industrial hemp holding company[98]. - The Group aims to enhance R&D capabilities and enter the cell and gene treatment market through the acquisition of Shenzhen Wingor[112]. Market Opportunities and Future Outlook - The Group plans to leverage the Healthy China Action (2019-2030) to enhance its health management business and expand into cell storage and functional medicine[24]. - The Group's outlook remains positive despite global economic uncertainties, with a focus on leveraging its traditional business for stable cash flow[34]. - The ongoing uncertainty from the epidemic and US-China trade disputes is expected to create more opportunities for mergers and acquisitions at lower prices[148]. - The Group believes it has sufficient resources and funds to select and acquire suitable strategic businesses and assets[148]. Corporate Governance and Management - Mr. Liu Lailin resigned as an Executive Director effective 27 May 2019, and Mr. Wu Peng was appointed as an Independent Non-Executive Director on the same date[186]. - Dr. Zeng Wentao was re-designated from Independent Non-Executive Director to Executive Director effective 27 May 2019, with a new service contract for three years[189]. - The service contracts for directors are generally terminable by either party with a notice period ranging from two to three months[187][190][195]. Employee and Operational Insights - The Group provides ongoing training to employees to enhance their skills and professional development[165]. - The Group has adopted share option schemes to attract, retain, and motivate key employees, granting share options to eligible employees[165]. - The Group maintains stable business relationships with suppliers, ensuring sufficient inventory levels and bargaining power to manage price fluctuations[168]. Legal and Compliance - The Group's operations are compliant with all relevant laws and regulations in Hong Kong, the PRC, Australia, and Bermuda in 2019[160]. - As of March 31, 2020, a lawsuit against a subsidiary was ongoing, with potential claims amounting to approximately HK$2.3 million, but no provision was deemed necessary at this stage[103].

Financial Performance - The company recorded revenue of approximately HKD 108,594,000 for the six months ended June 30, 2019, a decrease of 17.4% compared to HKD 131,490,000 for the same period in 2018[13]. - Gross profit for the same period was approximately HKD 44,059,000, an increase of 25.2% from HKD 35,180,000 in the previous year[13]. - Profit before tax was approximately HKD 49,428,000, a slight increase of 0.1% compared to HKD 49,394,000 for the six months ended June 30, 2018[13]. - Net profit attributable to the owners of the parent was approximately HKD 41,102,000, up 5.8% from HKD 38,840,000 in the prior year[13]. - Trading business revenue for the six months ended June 30, 2019, was approximately HKD 52.9 million, a decrease of 44.0% compared to HKD 94.6 million for the same period in 2018[25]. - Sales agency service revenue increased approximately 160% to HKD 18.2 million for the six months ended June 30, 2019, compared to HKD 6.9 million for the same period in 2018[26]. - Property investment and leasing business revenue increased by 4.9% to approximately HKD 9.7 million for the six months ended June 30, 2019[27]. - Healthcare-related business revenue increased by 33.5% to approximately HKD 27.7 million for the six months ended June 30, 2019, but incurred a loss of approximately HKD 860,000 due to increased R&D expenses[29]. - The company reported a net profit of HKD 39,212,000 for the six months ended June 30, 2019, compared to HKD 39,051,000 in the same period of 2018, reflecting a slight increase of 0.4%[65]. - Total comprehensive income for the period amounted to HKD 36,719,000, significantly higher than HKD 21,774,000 in the previous year, indicating a year-over-year increase of 68.8%[67]. Investment Activities - The company acquired a 45% stake in Shenzhen Yinguang Biotechnology Co., Ltd. for a total consideration of approximately RMB 55,095,000[16]. - Following the acquisition, the company became the largest shareholder of Shenzhen Yinguang, holding a majority of the board seats[17]. - The company successfully placed 360,000,000 new shares at a price of HKD 0.91 per share, raising approximately HKD 325,707,000 for investment in industrial hemp extraction and general working capital[19]. - The company acquired an additional 5.55% equity stake in Yunnan Hanzu for approximately RMB 14.6 million (approximately HKD 16.5 million) in July 2019[22]. - The company plans to invest no less than HKD 100 million to establish an industrial hemp holding group, with subsidiaries in Australia and Switzerland currently being formed[23]. - The company is actively expanding its presence in the industrial hemp market, with plans for joint ventures and equity purchases to capture growth opportunities[33]. - The company plans to invest no less than HKD 100 million to establish an industrial hemp holding group, Hemp International Holdings Limited[36]. - The group has established a subsidiary in Australia, Australia Hemp Health Pty Ltd, and is in the process of establishing subsidiaries in Switzerland[36]. - The joint venture with Long Dance Industrial aims to create a wholly-owned subsidiary in Japan for the development and application of cannabinoid vaporization technology[39]. - The company holds a 51% equity interest in the joint venture, which is expected to enhance its product portfolio and create new growth opportunities[37]. Financial Position - As of June 30, 2019, the group's cash and cash equivalents totaled approximately HKD 140.24 million, a decrease from HKD 161.14 million as of December 31, 2018[41]. - Current assets amounted to approximately HKD 999.19 million, while current liabilities were about HKD 300.87 million as of June 30, 2019[42]. - The debt-to-equity ratio was 28% as of June 30, 2019, compared to 23% as of December 31, 2018[43]. - The company has sufficient resources and funds to pursue strategic acquisitions amid global economic uncertainties[39]. - Bank loans secured against certain assets amounted to approximately HKD 367.91 million as of June 30, 2019, up from HKD 219.56 million as of December 31, 2018[45]. - The company’s total liabilities increased to HKD 656,261,000 as of June 30, 2019, compared to HKD 474,954,000 at the end of 2018, marking a rise of 38.2%[72]. - The net current assets stood at HKD 698,322,000, significantly higher than HKD 278,398,000 in the previous year, indicating an increase of 150.9%[73]. - The company’s equity attributable to owners of the parent increased to HKD 1,181,778,000 from HKD 817,003,000, reflecting a growth of 44.6%[80]. - The company reported a cash outflow from investing activities of HKD 468,004,000, compared to an inflow of HKD 49,466,000 in the previous year, indicating a significant shift in investment strategy[85]. - The financing activities generated a cash inflow of HKD 402,639,000, a substantial increase from HKD 39,704,000 in the same period last year, suggesting enhanced capital raising efforts[85]. Regulatory and Reporting Standards - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, specifically HKFRS 34 for interim financial reporting[91]. - The adoption of HKFRS 16 has been implemented, which requires the recognition and measurement of all leases using a single asset and liability model[95]. - The company has chosen to apply the modified retrospective approach for HKFRS 16, with no restatement of comparative information for 2018[96]. - The company recognized lease liabilities at the present value of remaining lease payments discounted using the incremental borrowing rate as of January 1, 2019[101]. - The company has opted for exemptions for low-value asset leases and short-term leases, recognizing lease payments as expenses on a straight-line basis[100]. - The company’s financial reporting policies are consistent with those applied in the preparation of the annual consolidated financial statements for the year ended December 31, 2018[92]. - The adoption of HKFRS 16 resulted in a right-of-use asset value of HKD 3,497 million and a lease liability of HKD 4,016 million as of January 1, 2019[108]. - The total undiscounted lease liabilities amounted to HKD 4,429 million as of January 1, 2019[112]. - The average incremental borrowing rate as of January 1, 2019, was 6%[113]. - The company recognized short-term lease expenses of HKD 2,852,000 for the six months ended June 30, 2019[120]. Strategic Focus and Future Outlook - The company aims to focus on health solutions and become a leading global health service provider in the second half of 2019[30]. - The company continues to explore market expansion opportunities and new product development strategies in the health industry[62]. - The company plans to expand its health management services and sales agency operations to capture more market share in mainland China[136]. - The company is focusing on enhancing its product offerings and exploring new technologies to improve service delivery[136]. - Future guidance indicates a cautious outlook due to market conditions, with expectations of gradual recovery in revenue streams[136]. Acquisition Details - The company acquired 45% equity in Shenzhen Yinguang for RMB 55.1 million, enhancing its competitive position in health management services[31]. - The acquisition of Shenzhen Yinguang is expected to enhance the company's competitive position in health management services and provide opportunities in the cell and gene therapy market[161]. - The fair value of identifiable net assets of Shenzhen Yinguang at the acquisition date was approximately HKD 31,522,000, with goodwill arising from the acquisition amounting to HKD 50,602,000[189]. - For the six months ended June 30, 2019, the company reported a loss of HKD 3,587,000 attributable to Shenzhen Yinguang, while revenue from the subsidiary was HKD 1,031,000[196]. - If the acquisition had been completed at the beginning of the reporting period, the company's total revenue for the six months ended June 30, 2019, would have been HKD 108,611,000, with profit amounting to HKD 31,691,000[196]. - The company has chosen to measure non-controlling interests based on the proportionate share of identifiable net assets of Shenzhen Yinguang[162]. - The acquisition-related costs were not significant, with cash paid amounting to HKD 64,781,000 and other payables of HKD 422,000[164]. - The company holds a majority of seats on the board of Shenzhen Yinguang, allowing it to control the subsidiary despite owning less than 50% of voting rights[161]. - The acquisition is expected to strengthen the company's research and development capabilities and broaden its product portfolio in the health management sector[161].

Financial Performance - The Group recorded a turnover of approximately HK$230,542,000 for the year ended 31 December 2018, representing an increase of 2.4 times compared to HK$68,705,000 in 2017[20]. - Profit attributable to owners of the Company amounted to approximately HK$80,537,000, a slight increase of 0.6% from HK$80,066,000 in 2017; excluding goodwill impairment, profit increased by 22.5% to approximately HK$98,071,000[20]. - Revenue from the Healthcare Related Business was approximately HK$46,248,000, an increase of 7.5% from HK$43,036,000 in 2017, with profit from this segment rising 10.7 times to approximately HK$2,985,000[20]. - Revenue from the Trading Business was approximately HK$118,847,000, representing an increase of 107.1 times compared to HK$1,099,000 in 2017, with profit increasing 34.4 times to approximately HK$16,221,000[20]. - Revenue from the Agency Service was approximately HK$46,731,000, an increase of 2.2 times from HK$14,727,000 in 2017, with profit rising by 205.3% to approximately HK$39,991,000[25]. - Revenue from the Property Investment and Leasing Business increased by 90.1% to approximately HK$18,716,000, while profit decreased by 29.5% to approximately HK$74,943,000 due to a decrease in fair value gain on investment properties[25]. Dividends and Reserves - The Board does not recommend the payment of a final dividend for the year ended 31 December 2018[25]. - Profit attributable to shareholders before dividends was approximately HK$80,537,000 for the year ended 31 December 2018, compared to HK$80,066,000 in 2017[159]. - The aggregate amount of the Company's reserves available for distribution to its owners as of 31 December 2018 was HK$599,375,000, an increase from HK$501,050,000 in 2017[160]. - The Company did not recommend the payment of a final dividend for the year ended 31 December 2018[157]. Acquisitions and Investments - The Group acquired a 20% equity interest in Yunnan Hansu Biotechnology Co., Ltd. for RMB 60 million, completed on March 16, 2018, with a net profit of RMB 50,020,000 for the year ended December 31, 2018[26]. - Shenzhen Meilleure agreed to acquire a 45% equity interest in Shenzhen Wingor for RMB 55,278,000, enhancing its position in the health management service field[54]. - The acquisition of Shenzhen Wingor is expected to allow the Group to enter the cell and gene treatment market, solidifying its competitive position[54]. - The acquisition of Shenzhen Wingor is expected to enhance the company's competitive position in the health management sector through precision medicine and provide opportunities in the cell and gene therapy market[55]. - The acquisition was completed in February 2019, making the company the largest single shareholder of Shenzhen Wingor[55]. Financial Position - As of December 31, 2018, the group's cash and cash equivalents totaled approximately HK$161,142,000, an increase from HK$50,852,000 in 2017, primarily due to increased fundraising and bank borrowings[56]. - The group had aggregate banking facilities of HK$283,466,000 as of December 31, 2018, compared to HK$175,537,000 in 2017, with a short-term loan of HK$219,563,000 utilized[56]. - Approximately 8.43% of the group's cash and cash equivalents are denominated in Hong Kong dollars, 36.58% in RMB, and 50.61% in US dollars[56]. - The company raised HK$54,600,000 for working capital and the acquisition of the 45% equity interest in Shenzhen Wingor Biotechnology Co., Ltd.[70]. - Bank borrowings secured by the Group's assets amounted to HK$219,563,000 as of 31 December 2018, up from HK$128,287,000 in 2017[1]. - The increase in cash and cash equivalents reflects the company's successful fundraising efforts and strategic financial management[56]. - As of 31 December 2018, the gearing ratio was 23%, down from 30% in 2017, with net debt of HK$249,922,000 and equity attributable to owners of the Company amounting to HK$817,003,000[1]. Legal and Compliance - The Company is currently involved in a legal action with potential damages claimed at approximately HK$2,316,666 plus interests[146][147]. - The directors believe that there is no need to make a provision for the claim due to its preliminary stage and the nature of the acquisition of La Clinique De Paris International Limited[152]. - The Company is not aware of any tax relief or exemption available to shareholders due to their holding of the Company's securities[161]. Employment and Governance - As of December 31, 2018, the Group employed approximately 86 employees[174]. - The Directors are required to retire by rotation once every three years, with one-third of the Directors retiring at each annual general meeting[176]. - The Group's remuneration policies align with market practices and are based on individual performance and experience[174]. Research and Development - Yunnan Hansu is the first facility in China to comply with GMP standards and holds the largest extraction base for Cannabidiol (CBD) and other cannabinol substances[38]. - The cooperation with Hemp Investment Group is a strategic initiative for the Group's investment in the medical and healthcare industry[38]. - Yunnan Hansu has applied for 17 patents and is recognized as a leading benchmark in the hemp industry globally[39].