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北京健康(02389) - 2022 - 年度财报
2023-04-20 12:52
Share Capital and Ownership Structure - As of December 31, 2022, the public float capitalization was approximately HK$347,725,000, representing about 84.40% of the issued share capital of the company[10]. - Cosmic Stand International Limited holds 945,000,000 shares, accounting for 15.60% of the total shares[2]. - Beijing Financial Investment Holdings Limited and its controlled corporations collectively hold 548,409,806 shares, which is 9.05% of the total shares[4]. - Easy Glory Holding Limited beneficially owns 200,400,000 shares, while Advance Finding Investments Limited holds 124,284,000 shares, totaling 324,684,000 shares attributed to 江河創建集團股份有限公司[11]. - The beneficial ownership structure indicates significant control by Beijing Enterprises Group Company Limited over multiple entities holding shares[4]. - Mr. Wang Zheng Chun is deemed to be interested in 35,074,000 shares, held beneficially by his spouse, representing approximately 0.56% of the issued share capital[19]. - Hillfame Holdings Limited holds 64,811,000 shares, fully beneficially owned by Mr. Wang, accounting for about 1.02% of the issued share capital[22]. - No other persons, apart from directors or chief executives, have been notified of interests or short positions in the company's shares as of December 31, 2022[12]. Financial Performance - The Group's loss for the year increased to HK$98,805,000 in 2022, compared to HK$40,234,000 in 2021[52]. - Consolidated revenue for 2022 was approximately HK$166,484,000, representing an 18% decrease compared to 2021[52]. - The Group's annual loss increased to HK$98,805,000 in 2022, compared to a loss of HK$40,234,000 in 2021, with total revenue approximately HK$166,484,000, a decrease of 18% year-on-year[55]. - The cost of sales was approximately HK$119,972,000, reflecting a year-on-year decrease of 23%[135]. - Other income and gains decreased by 44.5% to approximately HK$36,864,000, down from HK$66,447,000 in 2021[135]. - The Group's cash and cash equivalents amounted to approximately HK$420 million, down from HK$470 million in 2021[52]. - The Group's cash and cash equivalents as of December 31, 2022, were approximately HK$193,726,000, down by approximately HK$45,410,000 from HK$239,136,000 in 2021[170]. - Interest-bearing bank and other borrowings were approximately HK$25,747,000 as of December 31, 2022, compared to HK$36,693,000 in 2021[170]. Business Operations and Strategy - The Group continues to focus on its principal businesses while strictly controlling business risks to maintain performance stability[53]. - The Group aims to become a benchmark enterprise in the geriatric care industry in China by actively deploying a comprehensive aging industrial chain[82]. - The Group is focusing on the development of the geriatric care business in the Yangtze River Delta region, emphasizing the integration of medical services and geriatric care[54][82]. - The Group's integrated medical and geriatric care model has been widely recognized and effectively mitigated the impacts of the COVID-19 pandemic, leading to increased customer inquiries and satisfaction[63][82]. - The Group is focusing on stringent cost control and optimizing cost efficiency through prudent capital management and investments in wealth management products, equity, and bonds[110]. - The Group's strategy integrates medical and geriatric care, aiming to create professional and chain-managed geriatric care institutions[86]. - The Group is actively participating in offline exhibitions and brand promotion to prepare for sustainable market development in the furniture industry, anticipating a round of retaliatory purchases[109]. Corporate Governance - The Group acknowledged the importance of good corporate governance and has complied with the code provisions set out in the Corporate Governance Code throughout the year[145]. - The Company has adopted measures to ensure a high standard of corporate governance relevant to its operations[145]. - The Board currently comprises 11 members, including 6 Executive Directors and 5 Independent Non-executive Directors[148]. - The Company has established four Board committees: Audit Committee, Remuneration Committee, Nomination Committee, and Investment and Risk Management Committee, each with defined written terms of reference[190]. - The Audit Committee comprises three members, all of whom are Independent Non-executive Directors, ensuring oversight of financial reporting and compliance[190]. - The Company received annual written confirmations regarding the independence of its Independent Non-executive Directors, confirming their independence[185]. - The Board has ensured compliance with relevant legal and regulatory requirements, including the Corporate Governance Code[187]. Employee and Talent Management - The Group provided generous social security benefits to employees to enhance their sense of belonging and motivation at work[1]. - The Group's overall remuneration system is market-oriented, ensuring competitive salaries to attract and retain high-caliber personnel[1]. - As of December 31, 2022, the Group had approximately 166 employees, with total staff costs amounting to approximately HK$43,382,000, a decrease from HK$46,244,000 in 2021[1]. - The Group has increased its professional talent pool to ensure sustainable business development[86]. - The Company organized internal training courses covering topics such as accounting, finance, risk management, and tax laws during the year[1]. Market Conditions and Future Outlook - The overall economy in China began to recover steadily in the second half of 2022, following the impacts of the COVID-19 pandemic[53]. - Future economic activities are expected to gradually recover as the COVID-19 pandemic is brought under control, although uncertainties remain in the short-term business environment[163]. - The Group is focused on expanding market share and driving innovation amidst a complex and changing environment[163]. - The Group has maintained good relationships with banks to ensure easy access to loans for future growth[170].
北京健康(02389) - 2022 - 年度业绩
2023-03-30 11:18
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,概不對因本公告 全部或任何部分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。 (於開曼群島註冊成立的有限公司) (股份代號:2 3 8 9 ) 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 公 告 北京健康(控股)有限公司(「本公司」)董事會(「董事會」)宣佈本公司及其附屬公 司(統稱「本集團」)根據香港財務報告準則所編製截至二零二二年十二月三十一 日止年度之綜合全年業績,連同二零二一年之比較數字載列如下: 綜合損益及其他全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 收入 4 166,484 203,776 銷售成本 (119,972) (156,785) ...
北京健康(02389) - 2022 - 中期财报
2022-09-16 13:35
Financial Performance - Revenue for the six months ended June 30, 2022, was HK$91,807,000, representing an increase of 15.4% compared to HK$79,619,000 in the same period of 2021[10]. - Gross profit for the same period was HK$25,254,000, up from HK$22,554,000, indicating a growth of 12.0%[10]. - Loss before tax for the period was HK$35,673,000, compared to a loss of HK$18,035,000 in the prior year, reflecting an increase in losses of 97.5%[10]. - Loss for the period amounted to HK$34,387,000, which is significantly higher than the loss of HK$11,445,000 recorded in the previous year, marking an increase of 200.5%[10]. - Total comprehensive loss for the period was HK$127,904,000, compared to HK$17,609,000 in the same period last year, indicating a substantial increase of 726.5%[13]. - Basic and diluted loss per share attributable to ordinary equity holders of the parent was HK(0.54) cents, compared to HK(0.20) cents in the previous year[18]. - Other income and gains, net, decreased to HK$22,851,000 from HK$41,456,000, a decline of 44.8%[10]. - Selling and distribution expenses increased to HK$6,429,000 from HK$5,691,000, reflecting a rise of 13.0%[10]. - Administrative expenses decreased to HK$55,951,000 from HK$63,293,000, a reduction of 11.5%[10]. - The company reported a share of losses from joint ventures amounting to HK$6,788,000, compared to HK$1,689,000 in the previous year, indicating a significant increase in losses of 302.5%[10]. Assets and Liabilities - Total non-current assets decreased from HK$2,087,133,000 as of December 31, 2021, to HK$1,912,330,000 as of June 30, 2022, representing a decline of approximately 8.4%[20]. - Current assets decreased from HK$750,827,000 as of December 31, 2021, to HK$687,059,000 as of June 30, 2022, reflecting a reduction of about 8.5%[20]. - Total current liabilities decreased from HK$246,300,000 as of December 31, 2021, to HK$216,913,000 as of June 30, 2022, indicating a decline of approximately 11.9%[20]. - Net assets decreased from HK$2,496,619,000 as of December 31, 2021, to HK$2,295,443,000 as of June 30, 2022, a decrease of around 8.1%[22]. - Total equity attributable to the owners of the parent decreased from HK$2,293,624,000 as of December 31, 2021, to HK$2,181,038,000 as of June 30, 2022, reflecting a decline of approximately 4.9%[22]. - Cash and cash equivalents increased from HK$239,136,000 as of December 31, 2021, to HK$137,928,000 as of June 30, 2022, showing a decrease of about 42.3%[20]. - The company reported a total of HK$470,146,000 in net current assets as of June 30, 2022, down from HK$504,527,000 as of December 31, 2021, a decline of approximately 6.8%[20]. - Non-controlling interests decreased significantly from HK$202,995,000 as of December 31, 2021, to HK$114,405,000 as of June 30, 2022, a drop of about 43.5%[22]. - Total non-current liabilities decreased from HK$95,041,000 as of December 31, 2021, to HK$87,033,000 as of June 30, 2022, indicating a reduction of approximately 8.4%[22]. Cash Flow and Financing - Cash flows used in operating activities amounted to HK$1,009,000, a significant improvement from HK$55,628,000 used in the previous year, reflecting a reduction in cash outflow[64]. - Net cash flows from investing activities were negative at HK$90,564,000, compared to a positive inflow of HK$6,906,000 in the prior year, primarily due to increased investments and disposals[67]. - The company had cash and cash equivalents of HK$137,928,000 at the end of the period, down from HK$436,231,000 at the end of June 2021, representing a decrease of approximately 68.3%[70]. - New bank loans amounted to HK$37,807,000, while repayments of bank loans were HK$36,255,000, indicating a net increase in bank loans during the period[70]. - The company received bank interest income of HK$444,000, a decrease from HK$2,469,000 in the previous year, reflecting lower interest rates or reduced cash balances[67]. - The company incurred finance costs of HK$602,000, down from HK$949,000 in the previous year, suggesting improved cost management in financing[64]. Revenue Breakdown - Total revenue from contracts with customers for the six months ended June 30, 2022, was approximately HK$91,807,000, representing an increase of 15.5% compared to HK$79,619,000 for the same period in 2021[102]. - Revenue from the sale of goods was HK$88,126,000 for the six months ended June 30, 2022, up from HK$75,662,000 in 2021, indicating a growth of 16.4%[103]. - Revenue from rendering of services decreased slightly to HK$3,681,000 in 2022 from HK$3,957,000 in 2021, reflecting a decline of 7.0%[103]. - The Group's revenue is recognized when control of goods is transferred at a point in time, while service revenue is recognized over time[108]. Accounting Policies and Compliance - The interim condensed consolidated financial information for the six months ended 30 June 2022 has been prepared in accordance with the applicable disclosure requirements of the Listing Rules and Hong Kong Accounting Standard 34[76]. - The accounting policies adopted are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2021, with the adoption of revised Hong Kong Financial Reporting Standards for the current period[80]. - Amendments to HKFRS 3 and HKAS 37 were applied prospectively, clarifying the recognition principles for business combinations and onerous contracts, respectively, with no impact on the financial position or performance of the Group during the period[88]. - The Group has not identified any onerous contracts as of 1 January 2022, indicating no adverse financial implications from the amendments[88]. - The interim financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual consolidated financial statements[76]. Market and Operational Insights - The company is involved in providing medical care, health care, and geriatric care services and products in the People's Republic of China, indicating a focus on the healthcare sector[73]. - The Group's operating segment information indicates that the majority of revenue is generated from Mainland China, highlighting the importance of this market[96]. - The Group's financial instruments and deferred tax assets are primarily located in Mainland China, which is a key market for the Group[96]. - The Group's financial liabilities were not modified during the reporting period, indicating stability in financial management[94]. - The Group's overall financial performance demonstrates resilience and growth potential in a competitive market environment[102]. Investment and Fair Value - The fair value reserve of financial assets at fair value through other comprehensive income was reported at HK$7,814,000, indicating fluctuations in investment valuations[26]. - The fair value of equity investments designated at fair value through other comprehensive income decreased from HK$323,881,000 as of December 31, 2021, to HK$234,192,000 as of June 30, 2022, a decrease of approximately 27.8%[173]. - Financial assets at fair value through profit or loss increased from HK$253,169,000 as of December 31, 2021, to HK$340,759,000 as of June 30, 2022, an increase of approximately 34.5%[173]. - The total fair value of financial instruments as of June 30, 2022, is HK$234,192,000, with HK$198,879,000 from observable inputs[186]. - The fair values of listed equity and debt investments are based on quoted market prices, ensuring accurate valuation in the financial statements[175]. Shareholder Information - The company did not recommend any payment of interim dividend to shareholders for the six months ended 30 June 2022, consistent with the previous year[9]. - The company has 278,000 share options outstanding as of 30 June 2022, with no movement under the share option scheme during the period[138]. - The exercise of all outstanding share options would result in additional share capital of HK$55,600,000 and share premium of HK$105,060,000[147].
北京健康(02389) - 2021 - 年度财报
2022-04-20 08:39
Financial Performance - Revenue for the year ended December 31, 2021, was HK$203,776,000, representing an increase of 36% compared to HK$149,887,000 in 2020[14] - The loss attributable to the owners of the parent for 2021 was HK$39,410,000, a significant improvement from a loss of HK$185,324,000 in 2020[14] - Total assets as of December 31, 2021, amounted to HK$3,890,963,000, up from HK$3,752,718,000 in 2020[15] - Total liabilities decreased to HK$720,950,000 in 2021 from HK$619,673,000 in 2020, indicating improved financial stability[15] - Equity attributable to owners of the parent increased to HK$2,888,193,000 in 2021, compared to HK$2,847,967,000 in 2020[15] - The Group's loss for the year 2021 was significantly reduced to HK$40,234,000, compared to HK$199,989,000 in 2020, while consolidated revenue increased by 36% to approximately HK$203,776,000[18] - As of December 31, 2021, cash and cash equivalents amounted to approximately HK$470 million, slightly down from HK$480 million in 2020, indicating a stable financial position amidst industry challenges[18] - The cost of sales increased by 34% year-on-year to approximately HK$156,785,000, which includes purchases, freight, installation fees, and wage expenses[60] - The overall gross profit margin for the year was 23.1%, a slight increase of 1.2% from 21.9% in the previous year, but still lower than the approximately 30% gross profit margin from the year before[60] - Other income and gains amounted to approximately HK$66,447,000, an increase of 18.7% compared to HK$55,991,000 in 2020[62] - Selling and distribution expenses were approximately HK$13,783,000, representing 6.8% of total sales, down from 13.4% in 2020[62] - Administrative expenses increased by 6.6% to HK$119,095,000 compared to HK$111,770,000 in 2020, mainly due to a one-off maintenance fee incurred during the year[62] - The Group's net current assets reached HK$504,527,000 with a current ratio of 3 times as of December 31, 2021[66] - The Group's bank loans as of December 31, 2021, were secured by properties with carrying amounts of HK$26,363,000 and HK$32,642,000 for investment properties[68] - The Group's exposure to foreign exchange risks was primarily related to investments in joint ventures denominated in CAD and debt investments in US dollars, with no hedging arrangements in place[71] Market Strategy and Growth - The company plans to expand its market presence and invest in new technologies to enhance service offerings in the healthcare sector[17] - New product development initiatives are underway, focusing on innovative healthcare solutions to meet growing market demands[17] - The management is optimistic about future growth, projecting a continued upward trend in revenue and profitability for the upcoming fiscal year[17] - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its service portfolio[17] - A strategic review of operational efficiencies is being conducted to optimize costs and improve overall performance[17] - The Group's strategy focuses on integrated medical and geriatric care, aiming to develop professional and chain-managed geriatric care institutions[24] - The Group plans to expand its geriatric services in Wuxi and Changzhou, increasing bed capacity by 300 and 1,000 respectively in 2022[55] - The Group anticipates no new business investments in 2022, focusing instead on promoting innovation and expanding market share in existing businesses[49] - The Group remains optimistic about the Chinese geriatric market and related businesses, despite facing multiple challenges in 2022[50] Operational Performance - The Group operated five geriatric care institutions with a total of 1,055 beds, achieving an average occupancy rate of 70%, with well-established projects exceeding 90%[24] - The operating revenue from geriatric care services reached RMB32.35 million in 2021, representing a year-on-year increase of 26.2% from RMB25.64 million in 2020[28] - The sales business of medical and geriatric products saw a 36% year-on-year increase in operating revenue to HK$195,194,000, with a contracted but undelivered amount of RMB222 million as of December 31, 2021[21] - The Group achieved "zero infection" among elders and workers in all operating projects during the year, boosting consumer confidence in the brand[25] - The Group has added 10 reserve hospital directors, 30 medical professionals, and 15 various professionals in 2021 to enhance its talent pool for future development[24] Corporate Governance - The Group has complied with the Corporate Governance Code throughout the year ended December 31, 2021[83] - The Group has implemented corporate governance practices relevant to its operations and growth[82] - The Company has established four Board committees, including the Audit Committee, Remuneration Committee, Nomination Committee, and Investment and Risk Management Committee, to oversee specific aspects of its affairs[103] - All members of the Audit Committee are Independent Non-executive Directors, ensuring independence in financial oversight[105] - The Audit Committee is responsible for reviewing the financial statements and reports, considering significant items raised by auditors before submission to the Board[106] - The Company has adopted a Board Diversity Policy to achieve diversity on the Board, considering various aspects such as gender, age, and professional experience[116] - The Company aims to maintain an appropriate mix and balance of skills, knowledge, experience, and diversity of perspectives on the Board[116] - The Board reserves the decision on all major matters, including financial information and significant operational matters[96] Risk Management - The Board confirmed that it is responsible for establishing a risk management and internal control system, which will be reviewed for effectiveness at least once a year[135] - The Audit Committee has reviewed the effectiveness of the risk management and internal control systems covering financial, operational, and compliance controls during the reporting period[136] - The Company has established an internal audit function and engaged professional consultants for risk identification and evaluation, ensuring effective risk management measures are in place[146] - The Company will monitor exchange rate trends closely and apply financial hedging tools to mitigate exchange rate risks associated with its increasing overseas investments[188] Shareholder Relations - The Company emphasizes effective communication with shareholders to enhance investor relations and understanding of business performance[154] - The Company maintains a website for up-to-date information on business operations, financial data, and corporate governance practices[159] - The Company recognizes the importance of shareholder meetings as a forum for dialogue between the Board and shareholders[156] - The Company has a focus on transparency and timely disclosure of information to aid investment decisions[159]
北京健康(02389) - 2021 - 中期财报
2021-09-16 09:44
Unaudited Interim Financial Information [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2021, the company recorded a loss for the period of HK$11,445 thousand, a significant narrowing compared to the same period last year, with total comprehensive loss also significantly reduced and basic and diluted loss per share at HK(0.20) cents Table: Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 79,619 | 65,355 | | Gross profit | 22,554 | 13,853 | | Other income and gains, net | 41,456 | 37,382 | | Loss before tax | (18,035) | (79,832) | | Income tax credit/(expense) | 6,590 | (2,384) | | Loss for the period | (11,445) | (82,216) | | Total comprehensive loss for the period | (17,609) | (128,869) | | Loss for the period attributable to owners of the parent | (12,318) | (75,699) | | Loss per share attributable to ordinary equity holders of the parent (basic and diluted) | HK(0.20) cents | HK(1.25) cents | [Interim Condensed Consolidated Statement of Financial Position](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2021, the Group's total assets slightly decreased, with total non-current assets at HK$2,041,844 thousand and total current assets at HK$735,628 thousand, resulting in net assets of HK$2,474,626 thousand, a slight reduction from the end of 2020 Table: Interim Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2021 (HK$ thousand) | December 31, 2020 (HK$ thousand) | | :--- | :--- | :--- | | Total non-current assets | 2,041,844 | 2,069,233 | | Total current assets | 735,628 | 739,380 | | Total current liabilities | 200,268 | 220,745 | | Total non-current liabilities | 102,578 | 96,828 | | Net assets | 2,474,626 | 2,491,040 | | Equity attributable to owners of the parent | 2,270,492 | 2,281,838 | | Non-controlling interests | 204,134 | 209,202 | | Total equity | 2,474,626 | 2,491,040 | [Interim Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2021, the Group's total equity decreased from HK$2,491,040 thousand at the beginning of the period to HK$2,474,626 thousand, primarily due to the loss for the period and changes in other comprehensive income Table: Interim Condensed Consolidated Statement of Changes in Equity | Indicator | January 1, 2021 (HK$ thousand) | June 30, 2021 (HK$ thousand) | | :--- | :--- | :--- | | Equity attributable to owners of the parent | 2,281,838 | 2,270,492 | | Non-controlling interests | 209,202 | 204,134 | | Total equity | 2,491,040 | 2,474,626 | | Loss for the period (attributable to owners of the parent) | - | (12,318) | | Other comprehensive income/(loss) for the period (attributable to owners of the parent) | - | (253) | | Total comprehensive loss for the period (attributable to owners of the parent) | - | (12,541) | [Interim Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2021, the Group reported net cash outflow from operating activities of HK$48,266 thousand, net cash inflow from investing activities of HK$6,906 thousand, and net cash outflow from financing activities of HK$5,088 thousand, resulting in a net decrease in cash and cash equivalents of HK$46,448 thousand Table: Interim Condensed Consolidated Statement of Cash Flows | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Net cash flows used in operating activities | (48,266) | (72,866) | | Net cash flows from investing activities | 6,906 | 127,848 | | Net cash flows used in financing activities | (5,088) | (75,585) | | Net decrease in cash and cash equivalents | (46,448) | (20,603) | | Cash and cash equivalents at end of period | 436,231 | 430,405 | [Notes to Interim Condensed Consolidated Financial Information](index=12&type=section&id=Notes%20to%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the interim condensed consolidated financial information for the six months ended June 30, 2021, covering corporate information, accounting policies, operating segments, revenue, expenses, assets and liabilities, share capital, share options, disposal of a subsidiary, pledge of assets, commitments, related party transactions, fair value of financial instruments, and events after the reporting period [1. Corporate Information](index=13&type=section&id=1.%20Corporate%20Information) Beijing Health (Holdings) Limited is incorporated in the Cayman Islands and listed on the Main Board of the Hong Kong Stock Exchange, with the Group primarily providing medical, health, and elderly care-related services and products in China - The company was incorporated in the Cayman Islands, and its shares have been listed on the Main Board of the Hong Kong Stock Exchange since April 26, 2002[243](index=243&type=chunk)[246](index=246&type=chunk) - The Group's principal business is providing medical, health, and elderly care-related services and products in China[244](index=244&type=chunk)[246](index=246&type=chunk) [2. Basis of Preparation and Accounting Policies](index=13&type=section&id=2.%20Basis%20of%20Preparation%20and%20Accounting%20Policies) The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 and Appendix 16 of the Listing Rules, incorporating the first-time adoption of revised Hong Kong Financial Reporting Standards, including amendments related to interest rate benchmark reform Phase 2 and Covid-19-related rent concessions - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and Appendix 16 of the Listing Rules[245](index=245&type=chunk) - First-time adoptions include amendments to HKFRS 9 and other standards regarding interest rate benchmark reform Phase 2, and amendments to HKFRS 16 concerning Covid-19-related rent concessions[250](index=250&type=chunk)[251](index=251&type=chunk)[252](index=252&type=chunk) - The interest rate benchmark reform amendments had no impact on the Group's financial position and performance, as the Group has no related interest-bearing borrowings[255](index=255&type=chunk) - The Covid-19-related rent concession amendments had no impact on the Group's financial position and performance, as the Group did not receive rent concessions[255](index=255&type=chunk) [3. Operating Segment Information](index=17&type=section&id=3.%20Operating%20Segment%20Information) The Group has a single operating and reportable segment, which is the provision of medical, health, and elderly care-related services and products, with all revenue derived from customers in Mainland China and most non-current assets located there - The Group's single operating segment is the provision of medical, health, and elderly care-related services and products[257](index=257&type=chunk) - In the first half of 2021, **100% of revenue** was derived from customers in Mainland China (first half of 2020: 98%)[257](index=257&type=chunk) - Over **78% of non-current assets** (excluding financial instruments and deferred tax assets) are located in Mainland China (December 31, 2020: over 80%)[257](index=257&type=chunk) - Approximately **HK$11,017 thousand in revenue** was derived from a single customer (first half of 2020: HK$8,050 thousand)[258](index=258&type=chunk) [4. Revenue](index=17&type=section&id=4.%20Revenue) For the six months ended June 30, 2021, the Group's total revenue was HK$79,619 thousand, representing a **21.8% increase** year-on-year, primarily from sales of goods and provision of services, with all revenue originating from Mainland China Table: Revenue by Source and Geographic Market | Revenue Source | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Total revenue from contracts with customers | 79,619 | 65,355 | | - Sales of goods | 75,662 | 64,137 | | - Provision of services | 3,957 | 1,218 | | Geographic Market (Mainland China) | 79,619 | 63,786 | | Geographic Market (Middle East) | – | 1,569 | - Revenue from sales of goods is recognized at a point in time, while revenue from provision of services is recognized over time as services are transferred[265](index=265&type=chunk) [5. Other Income and Gains, Net](index=19&type=section&id=5.%20Other%20Income%20and%20Gains,%20Net) For the six months ended June 30, 2021, the Group's other income and gains, net, amounted to HK$41,456 thousand, a **10.9% increase** year-on-year, primarily driven by bank interest income, rental income, reversal of impairment loss on investment in an associate, and foreign exchange gains Table: Other Income and Gains, Net | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Bank interest income | 2,469 | 6,556 | | Other interest and investment income | 14,237 | 13,673 | | Gross rental income from investment properties under operating leases | 4,593 | 3,557 | | Dividend income | 1,246 | – | | Miscellaneous income | 789 | 716 | | Loss on disposal of property, plant and equipment | – | (2) | | Net fair value loss on investment properties | (959) | (1,215) | | Net fair value (loss)/gain on financial assets at fair value through profit or loss | (3,022) | 10,606 | | Gain on disposal of an associate | – | 3,491 | | Net exchange differences | 8,576 | – | | Reversal of impairment loss on investment in an associate | 13,527 | – | | Total other income and gains, net | 41,456 | 37,382 | [6. Finance Costs](index=20&type=section&id=6.%20Finance%20Costs) For the six months ended June 30, 2021, the Group's finance costs were HK$949 thousand, a **23.5% decrease** year-on-year, primarily comprising interest on bank and other borrowings and interest on lease liabilities Table: Finance Costs | Finance Cost Item | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 645 | 848 | | Interest on lease liabilities | 304 | 392 | | Total finance costs | 949 | 1,240 | [7. Loss Before Tax](index=21&type=section&id=7.%20Loss%20Before%20Tax) For the six months ended June 30, 2021, the Group's loss before tax was HK$18,035 thousand, a significant narrowing compared to the same period last year, primarily influenced by cost of sales, depreciation, exchange differences, and impairment of financial assets Table: Items Affecting Loss Before Tax | Item | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 54,715 | 50,013 | | Cost of services provided | 2,350 | 1,489 | | Depreciation of property, plant and equipment | 5,610 | 5,866 | | Depreciation of right-of-use assets | 11,768 | 9,924 | | Net exchange differences | (8,576) | 20,149 | | Impairment of trade receivables | 1,106 | 827 | | Impairment of debt investments at fair value through other comprehensive income | – | 1,755 | | Loss on disposal of a subsidiary | – | 27,337 | | Loss on deemed partial disposal of an associate | 5,291 | – | [8. Income Tax (Credit)/Expense](index=22&type=section&id=8.%20Income%20Tax%20(Credit)%2FExpense) For the six months ended June 30, 2021, the Group recorded an income tax credit of HK$6,590 thousand, primarily due to the reversal of over-provision for PRC enterprise income tax in prior periods Table: Income Tax (Credit)/Expense | Item | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | PRC enterprise income tax (current period expense) | 287 | 10 | | PRC enterprise income tax (over-provision in prior periods) | (5,677) | – | | Deferred tax | (1,200) | 2,374 | | Total tax (credit)/expense for the period | (6,590) | 2,384 | - No provision for Hong Kong profits tax was made as no assessable profits arose in Hong Kong during the period[286](index=286&type=chunk)[287](index=287&type=chunk) [9. Dividend](index=23&type=section&id=9.%20Dividend) The company's directors do not recommend the payment of an interim dividend to shareholders for the six months ended June 30, 2021 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2021 (2020: nil)[289](index=289&type=chunk) [10. Loss Per Share Attributable to Ordinary Equity Holders of the Parent](index=23&type=section&id=10.%20Loss%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) For the six months ended June 30, 2021, the basic and diluted loss per share attributable to ordinary equity holders of the parent was HK(0.20) cents, a significant improvement from HK(1.25) cents in the prior year Table: Loss Per Share Attributable to Ordinary Equity Holders of the Parent | Indicator | First Half 2021 | First Half 2020 | | :--- | :--- | :--- | | Unaudited loss for the period attributable to ordinary equity holders of the parent | HK$12,318 thousand | HK$75,699 thousand | | Weighted average number of ordinary shares in issue during the period | 6,078,944,027 shares | 6,078,944,027 shares | | Basic and diluted loss per share | HK(0.20) cents | HK(1.25) cents | - No adjustment was made for unexercised share options as they had no dilutive effect on the basic loss per share amount[291](index=291&type=chunk) [11. Property, Plant and Equipment](index=23&type=section&id=11.%20Property,%20Plant%20and%20Equipment) For the six months ended June 30, 2021, the Group acquired property, plant and equipment at a total cost of HK$2,250 thousand and disposed of property, plant and equipment with a total net book value of HK$19 thousand Table: Property, Plant and Equipment Acquisitions and Disposals | Item | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Total cost of property, plant and equipment acquired | 2,250 | 6,251 | | Net book value of property, plant and equipment disposed of | 19 | 4 | | Net loss on disposal | 0 | 2 | [12. Trade and Bills Receivables](index=24&type=section&id=12.%20Trade%20and%20Bills%20Receivables) As of June 30, 2021, the Group's total trade receivables amounted to HK$34,639 thousand, with HK$19,008 thousand due within six months, and bills receivables at nil Table: Ageing Analysis of Trade and Bills Receivables | Ageing | June 30, 2021 (HK$ thousand) | December 31, 2020 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables: within six months | 19,008 | 26,593 | | Trade receivables: seven to twelve months | 10,311 | 3,126 | | Trade receivables: thirteen to eighteen months | 3,002 | 3,025 | | Trade receivables: nineteen to twenty-four months | 2,318 | 731 | | Bills receivables | – | 1,069 | | Total | 34,639 | 34,544 | [13. Trade Payables](index=24&type=section&id=13.%20Trade%20Payables) As of June 30, 2021, the Group's total trade payables were HK$23,195 thousand, with HK$14,603 thousand due within three months, and trade payables are non-interest bearing, typically settled within three to six months Table: Ageing Analysis of Trade Payables | Ageing | June 30, 2021 (HK$ thousand) | December 31, 2020 (HK$ thousand) | | :--- | :--- | :--- | | Within three months | 14,603 | 18,377 | | Over three months | 8,592 | 15,947 | | Total | 23,195 | 34,324 | - Trade payables are non-interest bearing and are normally settled on terms of three to six months[296](index=296&type=chunk) [14. Share Capital](index=25&type=section&id=14.%20Share%20Capital) As of June 30, 2021, the company's authorized share capital was 10,000,000,000 ordinary shares of HK$0.2 each, with issued and fully paid share capital of 6,078,944,027 shares totaling HK$1,215,789 thousand, remaining unchanged from the end of 2020 Table: Share Capital | Share Capital Type | June 30, 2021 (HK$ thousand) | December 31, 2020 (HK$ thousand) | | :--- | :--- | :--- | | Authorized share capital (10,000,000,000 shares of HK$0.2 each) | 2,000,000 | 2,000,000 | | Issued and fully paid share capital (6,078,944,027 shares of HK$0.2 each) | 1,215,789 | 1,215,789 | [15. Share-Based Compensation Schemes](index=26&type=section&id=15.%20Share-Based%20Compensation%20Schemes) The company adopted a new share option scheme in 2013 to replace the 2002 scheme; as of June 30, 2021, 278,000,000 share options remained unexercised, with 60,000,000 options cancelled during the period and HK$9,649 thousand transferred from the share option reserve to accumulated losses - The company adopted a new share option scheme on May 24, 2013, replacing the 2002 scheme[304](index=304&type=chunk) - During the period, **60,000,000 share options** under the 2013 scheme were cancelled, and **HK$9,649 thousand** was transferred from the share option reserve to accumulated losses[304](index=304&type=chunk) Table: Number of Unexercised Share Options | Share Option Category | Number of Unexercised Share Options as of June 30, 2021 (thousand options) | Number of Unexercised Share Options as of December 31, 2020 (thousand options) | | :--- | :--- | :--- | | Total | 278,000 | 338,000 | - As of the end of the reporting period, the company had **278,000,000 unexercised share options**, the full exercise of which would result in the issuance of additional ordinary shares representing approximately **4.6%** of the issued shares[307](index=307&type=chunk) [16. Disposal of a Subsidiary](index=28&type=section&id=16.%20Disposal%20of%20a%20Subsidiary) In the first half of 2020, the Group disposed of a subsidiary, resulting in a loss of HK$27,337 thousand and cash consideration of HK$197,347 thousand Table: Disposal of a Subsidiary (First Half 2020) | Item | First Half 2020 (HK$ thousand) | | :--- | :--- | | Net assets disposed of | 216,136 | | Exchange fluctuation reserve | 8,548 | | Loss on disposal of a subsidiary | (27,337) | | Cash consideration | 197,347 | | Net cash and cash equivalents inflow | 197,347 | - Inter-group payables of **HK$123,670 thousand** were offset and paid by the buyer as part of the disposal transaction[310](index=310&type=chunk) [17. Pledge of Assets](index=29&type=section&id=17.%20Pledge%20of%20Assets) As of June 30, 2021, the Group's bank loans were secured by properties within property, plant and equipment with a total carrying value of HK$49,420 thousand, and a new bank facility of RMB180,000 thousand was secured by land use rights within right-of-use assets with a total carrying value of HK$383,051 thousand - As of June 30, 2021, the Group's bank loans were secured by properties within property, plant and equipment with a total carrying value of **HK$49,420 thousand** (December 31, 2020: HK$52,495 thousand)[315](index=315&type=chunk) - A new bank facility of **RMB180,000 thousand** was secured by land use rights within right-of-use assets with a total carrying value of **HK$383,051 thousand** (December 31, 2020: nil)[315](index=315&type=chunk) [18. Commitments](index=30&type=section&id=18.%20Commitments) As of June 30, 2021, the Group's total capital commitments amounted to HK$81,112 thousand, primarily comprising contracted but not provided amounts for land and buildings and properties under development Table: Capital Commitments | Commitment Item | June 30, 2021 (HK$ thousand) | December 31, 2020 (HK$ thousand) | | :--- | :--- | :--- | | Land and buildings | 58,309 | 55,215 | | Properties under development | 22,803 | 22,588 | | Total | 81,112 | 77,803 | [19. Related Party Disclosures](index=30&type=section&id=19.%20Related%20Party%20Disclosures) This section discloses the Group's related party transactions during the period, including interest income from a company jointly controlled by the company's directors and key management personnel compensation Table: Related Party Transactions | Transaction Type | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Interest income from a company jointly controlled by a director of the company | – | 3,792 | - On July 9, 2020, the company entered into a loan capitalization agreement with 1121695 B.C. Ltd. to capitalize a CAD**13,400,000 loan** and its accrued interest into shares of 1121695 B.C. Ltd., making it a joint venture of the Group[323](index=323&type=chunk)[327](index=327&type=chunk) Table: Key Management Personnel Compensation | Key Management Personnel Compensation Item | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Salaries, allowances and benefits in kind | 3,665 | 3,584 | | Performance-related bonuses | 117 | 197 | | Contributions to pension schemes | 98 | 108 | | Total | 3,880 | 3,889 | [20. Fair Value and Fair Value Hierarchy of Financial Instruments](index=33&type=section&id=20.%20Fair%20Value%20and%20Fair%20Value%20Hierarchy%20of%20Financial%20Instruments) This section discloses the carrying amounts, fair values, and fair value hierarchy of the Group's financial instruments, with total fair value of financial assets at HK$350,051 thousand, primarily comprising equity investments and debt investments designated at fair value through other comprehensive income Table: Carrying Amounts and Fair Values of Financial Instruments | Financial Asset Item | Carrying Amount June 30, 2021 (HK$ thousand) | Carrying Amount December 31, 2020 (HK$ thousand) | Fair Value June 30, 2021 (HK$ thousand) | Fair Value December 31, 2020 (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Equity investments designated at fair value through other comprehensive income | 281,251 | 303,986 | 281,251 | 303,986 | | Debt investments at fair value through other comprehensive income | 41,365 | 42,375 | 41,365 | 42,375 | | Bills receivable | – | 1,069 | – | 1,069 | | Financial assets at fair value through profit or loss | 27,435 | 28,312 | 27,435 | 28,312 | | Total | 350,051 | 375,742 | 350,051 | 375,742 | - Management assesses that the fair values of short-term instruments such as cash and cash equivalents, restricted bank balances, and trade receivables approximate their carrying amounts[331](index=331&type=chunk) - Fair value measurement hierarchy is categorized into Level 1 (quoted prices in active markets), Level 2 (significant observable inputs), and Level 3 (significant unobservable inputs)[347](index=347&type=chunk) Table: Fair Value Hierarchy of Financial Instruments (June 30, 2021) | Financial Instrument Category (June 30, 2021) | Level 1 (HK$ thousand) | Level 2 (HK$ thousand) | Level 3 (HK$ thousand) | Total (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Equity investments designated at fair value through other comprehensive income | 49,849 | 167,586 | 63,816 | 281,251 | | Debt investments at fair value through other comprehensive income | 41,365 | – | – | 41,365 | | Financial assets at fair value through profit or loss | 2,809 | 5,192 | 19,434 | 27,435 | | Total | 94,023 | 172,778 | 83,250 | 350,051 | - During the period, there were no transfers between Level 1 and Level 2, and no transfers into or out of Level 3[353](index=353&type=chunk) [21. Events After the Reporting Period](index=41&type=section&id=21.%20Events%20After%20the%20Reporting%20Period) Subsequent to the reporting period, on July 6, 2021, the Group subscribed to a structured deposit issued by Xiamen International Bank for RMB60 million (approximately HK$72 million), which guarantees principal and is linked to the EUR/USD exchange rate, maturing on July 6, 2022 - On July 6, 2021, the Group subscribed to a structured deposit issued by Xiamen International Bank for **RMB60 million** (approximately **HK$72 million**)[361](index=361&type=chunk)[363](index=363&type=chunk) - This structured deposit guarantees principal, has a floating return rate linked to the EUR/USD exchange rate, and will mature on July 6, 2022[361](index=361&type=chunk)[363](index=363&type=chunk) [22. Comparative Amounts](index=41&type=section&id=22.%20Comparative%20Amounts) Certain comparative amounts have been reclassified to conform with the current period's presentation - Certain comparative amounts have been reclassified to conform with the current period's presentation[362](index=362&type=chunk)[364](index=364&type=chunk) [23. Approval of the Interim Financial Information](index=41&type=section&id=23.%20Approval%20of%20the%20Interim%20Financial%20Information) This interim condensed consolidated financial information was approved and authorized for issue by the Board of Directors on August 27, 2021 - The interim condensed consolidated financial information was approved and authorized for issue by the Board of Directors on August 27, 2021[366](index=366&type=chunk) Management Discussion and Analysis [Business Review](index=42&type=section&id=Business%20Review) In the first half of 2021, the Group continued to develop its core businesses, including geriatric care, health industrial park, and medical and geriatric product sales, with improved occupancy rates in elderly care facilities, steady progress in health industrial park projects, and increased technological content in medical and geriatric product sales [Geriatric Care Business](index=42&type=section&id=Geriatric%20Care%20Business) In the first half of 2021, the Group's geriatric care facilities maintained stable operations with increasing occupancy rates, and the integrated medical-elderly care model gained widespread market recognition, operating 5 facilities with a total of 1,035 beds and achieving a **23.63% year-on-year increase** in operating revenue - In the first half of 2021, the Group's geriatric care facilities maintained stable operations with continuously increasing occupancy rates, and the integrated medical-elderly care model gained widespread market recognition[368](index=368&type=chunk)[371](index=371&type=chunk) - The Group operates **5 geriatric care facilities** with a total of **1,035 beds** (primarily in the Yangtze River Delta region)[368](index=368&type=chunk)[371](index=371&type=chunk) Table: Geriatric Care Business Operating Revenue | Indicator | First Half 2021 | First Half 2020 | | :--- | :--- | :--- | | Operating Revenue (RMB) | RMB15.85 million | RMB12.82 million | | Year-on-year growth | 23.63% | - | - Wuxi Liangxi District Guangyi Elderly Care Center and Fuma Nursing Home achieved **100% occupancy** (285 beds)[370](index=370&type=chunk) - Changzhou Xinbei District Xuejia Aixin Nursing Home had an occupancy rate of **32%** (newly opened, 375 beds)[375](index=375&type=chunk) [Health Industrial Park Business](index=44&type=section&id=Health%20Industrial%20Park%20Business) The Group acquires prime land in first-tier cities like Beijing and Shanghai to develop new business formats such as corporate headquarters and health industrial parks; as of June 30, 2021, the Group participated in six projects with a total land area exceeding **400,000 square meters**, demonstrating significant potential for commercial value enhancement - The Group primarily acquires prime land in first-tier cities like Beijing and Shanghai, focusing on developing new business formats such as corporate headquarters and health industrial parks[379](index=379&type=chunk)[381](index=381&type=chunk) - As of June 30, 2021, the Group participated in **six projects** across Beijing, Shanghai, Dali, and Canada, with a total land area exceeding **400,000 square meters**[380](index=380&type=chunk)[381](index=381&type=chunk) - Implementation plans for each project have received local government support, project positioning aligns with market demand, and there is significant potential for commercial value enhancement[380](index=380&type=chunk)[381](index=381&type=chunk) Table: Health Industrial Park Projects | Location | Project Name | Land Area (sqm) | Equity Stake | Project Progress | | :--- | :--- | :--- | :--- | :--- | | Beijing | Chaoyang Port Project | 87,607 | 82.24% | Aligns with international development trends, meets Beijing urban planning secondary distribution center needs, creating a "Beijing Urban Center Green Innovation Smart Integrated Cluster" | | Shanghai | Sanlu Road Project | 20,480 | 20% | Property leasing and operation in progress | | Shanghai | Hongmei Road Project | 39,448 | 100% | Planned to become a new architectural landmark in the area, serving and meeting surrounding residents' demand for quality living, becoming a community gathering space, creating a "Health, Green, Community, Family Commercial Complex" | | Canada | Ovation | 2,425 | Not applicable (debt investment) | Presales started in April 2019, approximately 60% of saleable area sold to date | | Canada | Royal Tower | 10,588 | 47.47% | Preparing applications for rezoning of project land and seeking suitable partners | [Sale of Medical and Geriatric Products](index=47&type=section&id=Sale%20of%20Medical%20and%20Geriatric%20Products) The Group's subsidiary, Weisen Shengye Company, continues to specialize in the professional furniture industry for elderly care, medical, and education sectors, centering products on 'human health needs,' and in the first half of 2021, obtained **2 patents**, **1 copyright registration**, and **3 software copyrights**, continuously enhancing the company's technological content - Beijing Weisen Shengye Furniture Co Ltd continues to specialize in the professional furniture industry for elderly care, medical, and education sectors, with 'human health needs' as the core of its products[387](index=387&type=chunk)[388](index=388&type=chunk) - In the first half of 2021, Weisen Shengye obtained **2 patents**, **1 copyright registration**, and **3 software copyrights**, continuously enhancing the company's technological content[389](index=389&type=chunk) [Future Prospect](index=48&type=section&id=Future%20Prospect) Facing a deeply aging society, the Group will actively develop institutional elderly care businesses, identify suitable projects for bidding or M&A, and plan high-end medical and elderly care apartments; medical and elderly care product sales are expected to recover to 2019 levels in the second half, while the Group will continue to advance health industrial park approval processes, accelerate project turnover, strictly control costs, prudently manage its own funds, and enhance free cash returns through investments - China's population aged 60 and above accounts for approximately **18.70%** of the total, a **5.44% year-on-year increase**, forming a deeply aging society[391](index=391&type=chunk)[393](index=393&type=chunk) - The Group will actively develop institutional elderly care businesses, identify suitable projects for bidding or M&A, and plan a high-end medical and elderly care apartment in Wuxi, China, covering **25 mu** with **260 beds**[391](index=391&type=chunk)[393](index=393&type=chunk) - For medical and elderly care product sales, business volume is expected to return to **2019 levels** in the second half of the year[391](index=391&type=chunk)[393](index=393&type=chunk) - The Group will continue to advance government approval processes for health industrial parks, accelerate project turnover, and provide sustained cash flow for institutional elderly care businesses[391](index=391&type=chunk)[393](index=393&type=chunk) - The Group's overall strategy includes strict cost control, optimizing cost-effectiveness, prudent management of own funds, and enhancing free cash returns through appropriate bank wealth management, stock, and bond investments to strengthen financial position[392](index=392&type=chunk)[394](index=394&type=chunk) [Material Investments](index=49&type=section&id=Material%20Investments) For the period ended June 30, 2021, the Group made no new material investments outside of its ordinary course of business, and while actively seeking suitable investments with potential and synergistic effects, no material investment agreements had been entered into as of the interim report date - For the period ended June 30, 2021, no new material investments were made outside of the ordinary course of business[396](index=396&type=chunk)[401](index=401&type=chunk) - The Group is actively seeking and exploring potential and synergistic suitable investments, but no material investment agreements had been entered into as of the interim report date[397](index=397&type=chunk)[401](index=401&type=chunk) [Financial Review](index=49&type=section&id=Financial%20Review) This section provides a detailed review of the Group's financial performance in the first half of 2021, including operating revenue growth, cost of sales control, gross profit margin improvement, changes in other income and gains, fluctuations in various expenses, and the status of liquidity, capital structure, and capital expenditure [Operating Revenue](index=49&type=section&id=Operating%20Revenue) In the first half of 2021, the Group's operating revenue was HK$79,619 thousand, a **21.8% year-on-year increase**, primarily due to the gradual recovery of medical and geriatric product sales to pre-pandemic levels Table: Operating Revenue | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Operating Revenue | 79,619 | 65,355 | | Year-on-year growth | 21.8% | - | | Medical and geriatric product sales revenue | 75,662 | 64,137 | | Medical and geriatric product sales revenue year-on-year growth | 18% | - | - The increase in operating revenue was primarily due to the gradual recovery of medical and geriatric product sales to pre-pandemic levels[398](index=398&type=chunk)[402](index=402&type=chunk) [Cost of Sales](index=49&type=section&id=Cost%20of%20Sales) In the first half of 2021, cost of sales was HK$57,065 thousand, a **10.8% year-on-year increase**, primarily comprising procurement costs, freight, installation fees, and staff costs Table: Cost of Sales | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Cost of Sales | 57,065 | 51,502 | | Year-on-year growth | 10.8% | - | - Cost of sales primarily includes procurement costs, freight, installation fees, and staff costs[399](index=399&type=chunk)[403](index=403&type=chunk) [Gross Profit Margin](index=49&type=section&id=Gross%20Profit%20Margin) In the first half of 2021, the Group's overall gross profit margin was **28.3%**, an increase of **7.1 percentage points** from 21.2% in the prior year, primarily due to the Group adjusting its product order mix to reduce lower-margin contracts Table: Gross Profit Margin | Indicator | First Half 2021 | First Half 2020 | | :--- | :--- | :--- | | Gross Profit Margin | 28.3% | 21.2% | | Year-on-year change | Up 7.1 percentage points | - | - The increase in gross profit margin was primarily due to the Group adjusting its product order mix and reducing lower-margin contracts[400](index=400&type=chunk)[404](index=404&type=chunk) [Other Income and Gains, Net](index=50&type=section&id=Other%20Income%20and%20Gains,%20Net) In the first half of 2021, other income and gains amounted to HK$41,456 thousand, a **10.9% year-on-year increase**, primarily including bank interest and investment income, rental income, reversal of impairment on investment in an associate, and foreign exchange gains Table: Other Income and Gains, Net | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Other Income and Gains | 41,456 | 37,382 | | Year-on-year growth | 10.9% | - | | Bank interest and other interest and investment income | 15,622 | 20,229 | | Rental income | 4,593 | 3,557 | | Reversal of impairment on investment in an associate | 13,527 | – | | Foreign exchange gains | 8,576 | (20,149) (loss) | | Fair value impairment of financial assets at fair value through profit or loss | 3,022 | 10,606 (gain) | [Selling and Distribution Expenses](index=50&type=section&id=Selling%20and%20Distribution%20Expenses) In the first half of 2021, selling and distribution expenses were HK$5,691 thousand, a significant **64.1% year-on-year decrease**, representing **7.1% of total sales**, primarily due to the absence of intermediary commission fees from the disposal of a subsidiary during the period Table: Selling and Distribution Expenses | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Selling and Distribution Expenses | 5,691 | 15,849 | | Percentage of total sales | 7.1% | 24.3% | | Staff costs | 3,590 | 4,387 | | Promotion expenses | 491 | 420 | | Intermediary commission fees | – | 9,775 | - The significant decrease in selling and distribution expenses was primarily due to the absence of intermediary commission fees arising from the disposal of a subsidiary during the period[408](index=408&type=chunk)[410](index=410&type=chunk) [Administrative Expenses](index=51&type=section&id=Administrative%20Expenses) In the first half of 2021, administrative expenses were HK$63,293 thousand, a **16.4% year-on-year increase**, primarily due to staff remuneration recovering to pre-pandemic levels, leading to higher staff costs Table: Administrative Expenses | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Administrative Expenses | 63,293 | 54,368 | | Year-on-year growth | 16.4% | - | | Staff costs (including directors' emoluments) | 23,205 | 19,327 | | Professional and consulting fees | 4,843 | 6,163 | | Depreciation expenses | 17,378 | 15,790 | | Repair and maintenance expenses | 4,282 | – | - The increase in administrative expenses was mainly due to staff remuneration gradually recovering to pre-pandemic levels in the first half of 2021, leading to an increase in staff costs of **HK$3,878 thousand**[412](index=412&type=chunk)[413](index=413&type=chunk) [Impairment Losses of Financial Assets](index=51&type=section&id=Impairment%20Losses%20of%20Financial%20Assets) Impairment losses of financial assets decreased by **HK$1,476 thousand**, primarily because no additional impairment provision was required for the Group's bond investments during the period Table: Impairment Losses of Financial Assets | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Impairment Losses of Financial Assets | 1,106 | 2,582 | | Year-on-year decrease | 1,476 | - | - The decrease in impairment losses was mainly due to no additional impairment provision being required for the Group's bond investments during the period (2020: HK$1,755 thousand)[414](index=414&type=chunk)[415](index=415&type=chunk) [Other Expenses and Losses](index=51&type=section&id=Other%20Expenses%20and%20Losses) In the first half of 2021, other expenses and losses amounted to HK$5,356 thousand, primarily representing losses from the deemed partial disposal of an associate; this item significantly decreased year-on-year, mainly due to no loss from disposal of a subsidiary during the period and foreign exchange gains from the appreciation of RMB and CAD assets Table: Other Expenses and Losses | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Other Expenses and Losses | 5,356 | 47,486 | | Loss on deemed partial disposal of an associate | 5,291 | – | | Foreign exchange losses | – | 20,149 | | Loss arising from disposal of a subsidiary | – | 27,337 | - The significant decrease in other expenses and losses was primarily due to the absence of losses from the disposal of a subsidiary by the Group during the period, and the foreign exchange gains arising from the appreciation of the Group's RMB and CAD assets recognized in other income and gains, net[417](index=417&type=chunk)[418](index=418&type=chunk) [Finance Cost](index=52&type=section&id=Finance%20Cost) In the first half of 2021, total finance costs were HK$949 thousand, a **23.5% decrease** year-on-year, primarily due to a reduction in the Group's weighted average borrowing balance Table: Total Finance Costs | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Total Finance Costs | 949 | 1,240 | | Year-on-year decrease | 23.5% | - | - The decrease in finance costs was primarily due to a reduction in the Group's weighted average borrowing balance during the period[420](index=420&type=chunk) [Share of Profits and Losses of Joint Ventures](index=52&type=section&id=Share%20of%20Profits%20and%20Losses%20of%20Joint%20Ventures) Share of profits and losses of joint ventures primarily represents the Group's **47.47% share** of the loss attributable to shareholders of 1121695 B.C. Ltd., amounting to approximately **HK$1,083 thousand** Table: Share of Profits and Losses of Joint Ventures | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Share of Profits and Losses of Joint Ventures | (1,689) | (1,176) | | Share of loss attributable to shareholders of 1121695 B.C. Ltd. | 1,083 | - | [Share of Profits and Losses of Associates](index=52&type=section&id=Share%20of%20Profits%20and%20Losses%20of%20Associates) Share of profits and losses of associates primarily includes the Group's share of loss attributable to shareholders of Beijing Sports Culture Industry Group Co Ltd of approximately **HK$363 thousand** and Shanghai Junbo Textile Co Ltd of approximately **HK$2,253 thousand** Table: Share of Profits and Losses of Associates | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Share of Profits and Losses of Associates | (3,961) | (8,366) | | Share of loss attributable to shareholders of Beijing Sports Culture Industry Group Co Ltd | 363 | 2,912 | | Share of loss attributable to shareholders of Shanghai Junbo Textile Co Ltd | 2,253 | 4,328 | [Liquidity and Financial Resources](index=52&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2021, the Group held cash and cash equivalents of approximately HK$436,231 thousand, with net current assets reaching HK$535,360 thousand and a current ratio of **3.7 times**, indicating ample liquidity Table: Liquidity and Financial Resources | Indicator | June 30, 2021 (HK$ thousand) | December 31, 2020 (HK$ thousand) | | :--- | :--- | :--- | | Cash and cash equivalents | 436,231 | 477,420 | | Restricted bank balances | 9,620 | 2,217 | | Interest-bearing bank and other borrowings | 41,338 | 34,930 | | Net current assets | 535,360 | 518,635 | | Current ratio | 3.7 times | - | - The Group maintains sufficient bank credit facilities to meet working capital needs and holds ample cash resources to fund capital expenditures[422](index=422&type=chunk) [Capital Structure](index=53&type=section&id=Capital%20Structure) As of June 30, 2021, the company had 6,078,944,027 shares issued, with total equity of approximately HK$2,474,626 thousand, and a debt-to-asset ratio maintained at a low level of **1.5%**, indicating a robust capital structure - The Group fully leverages its listed company financing platform to optimize its capital and financing structure, securing sufficient funds for future health and elderly care industry projects[425](index=425&type=chunk) - During the period, the Group's business operations were primarily funded through internal resources and bank loans[425](index=425&type=chunk) Table: Capital Structure | Indicator | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Number of shares issued | 6,078,944,027 shares | 6,078,944,027 shares | | Equity attributable to shareholders of the company | HK$2,270,492 thousand | HK$2,281,838 thousand | | Total equity | HK$2,474,626 thousand | HK$2,491,040 thousand | | Debt-to-asset ratio (bank and other borrowings divided by total assets) | 1.5% | 1.2% | [Capital Expenditure](index=53&type=section&id=Capital%20Expenditure) For the six months ended June 30, 2021, the Group's capital expenditure was approximately HK$2,250 thousand, a **55.9% decrease** year-on-year, primarily for the acquisition of property, plant and equipment Table: Capital Expenditure | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Capital Expenditure | 2,250 | 5,105 | | Year-on-year decrease | 55.9% | - | - Capital expenditure was primarily for the acquisition of property, plant and equipment[425](index=425&type=chunk) [Pledge of Assets](index=53&type=section&id=Pledge%20of%20Assets) As of June 30, 2021, the Group's bank loans were secured by properties within property, plant and equipment with a total carrying value of HK$49,420 thousand, and a new bank facility of RMB180,000 thousand was secured by land use rights with a total carrying value of HK$383,051 thousand - As of June 30, 2021, the Group's bank loans were secured by properties within property, plant and equipment with a total carrying value of **HK$49,420 thousand** (December 31, 2020: HK$52,495 thousand)[425](index=425&type=chunk) - A new bank facility of **RMB180,000 thousand** was secured by land use rights within right-of-use assets with a total carrying value of **HK$383,051 thousand** (December 31, 2020: nil)[425](index=425&type=chunk) [Contingent Liabilities](index=54&type=section&id=Contingent%20Liabilities) As of June 30, 2021, the Group had no material contingent liabilities - As of June 30, 2021, the Group had no material contingent liabilities[427](index=427&type=chunk)[430](index=430&type=chunk) [Foreign Exchange Risk](index=54&type=section&id=Foreign%20Exchange%20Risk) The Group's foreign exchange risk primarily arises from other receivables and investments in joint ventures denominated in CAD, and debt and equity investments at fair value through other comprehensive income denominated in USD; management will continue to monitor foreign exchange risk and implement hedging measures when necessary - The Group's foreign exchange risk primarily arises from other receivables and investments in joint ventures denominated in CAD, and debt and equity investments at fair value through other comprehensive income denominated in USD[428](index=428&type=chunk)[431](index=431&type=chunk) - The Group currently has no arrangements or financial instruments to hedge potential foreign exchange risk, but management will continue to monitor and implement hedging measures when necessary[428](index=428&type=chunk)[431](index=431&type=chunk) [Employees and Remuneration Policy](index=54&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2021, the Group had **241 employees** with total staff costs of approximately HK$27,634 thousand; the Group's remuneration policy is market-based, offering benefits such as medical insurance, mandatory provident fund contributions, and social insurance, alongside discretionary performance bonuses, year-end awards, and share option schemes to incentivize employees Table: Employee Information and Staff Costs | Indicator | June 30, 2021 | Same Period 2020 | | :--- | :--- | :--- | | Number of employees | 241 employees | 298 employees | | Total staff costs (including directors' emoluments) | HK$27,634 thousand | HK$24,478 thousand | - The Group's remuneration policy is determined by market levels and provides benefits such as medical insurance, Mandatory Provident Fund contributions, and China social insurance[429](index=429&type=chunk) - To motivate and reward employees, the Group has established discretionary performance bonuses and year-end award schemes, as well as share option schemes and employee option schemes[429](index=429&type=chunk) Additional Information [1. Directors' and Chief Executive's Interests and Short Positions in Shares and Underlying Shares](index=55&type=section&id=1.%20Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2021, the company's directors, chief executive, and their associates held long positions in the company's shares and underlying shares, primarily comprising beneficially owned shares and share options Table: Directors' and Chief Executive's Interests in Shares and Underlying Shares | Director Name | Capacity | Interests in Shares (shares) | Interests in Underlying Shares (shares) | Total Interests in Shares (shares) | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr Wang Zhengchun | Beneficial owner | 5,468,750 | 30,000,000 | 35,468,750 | 0.58% | | Mr Wang Zhengchun | Interest held by spouse | 35,074,000 | – | 35,074,000 | 0.58% | | Mr Wang Zhengchun | Interest held by controlled corporation | 64,811,000 | – | 64,811,000 | 1.07% | | Mr Zhu Shixing | Beneficial owner | - | 30,000,000 | 30,000,000 | 0.49% | | Mr Liu Xueheng | Beneficial owner | - | 30,000,000 | 30,000,000 | 0.49% | | Mr Gu Shanchao | Beneficial owner | - | 30,000,000 | 30,000,000 | 0.49% | | Mr Xiao Jianwei | Beneficial owner | - | 10,000,000 | 10,000,000 | 0.16% | | Mr Zhang Jingming | Beneficial owner | - | 20,000,000 | 20,000,000 | 0.33% | | Mr Hu Xiangqi | Beneficial owner | - | 15,000,000 | 15,000,000 | 0.25% | | Mr Kang Shixue | Beneficial owner | - | 7,000,000 | 7,000,000 | 0.12% | | Mr Wu Yongxin | Beneficial owner | - | 4,000,000 | 4,000,000 | 0.07% | | Mr Tse Man Kit | Beneficial owner | - | 4,000,000 | 4,000,000 | 0.07% | | Mr Zhang Yunzhou | Beneficial owner | - | 2,000,000 | 2,000,000 | 0.03% | - Interests in underlying shares arose from share options granted on April 2, 2015, and January 28, 2016, with exercise prices of **HK$0.61** and **HK$0.53** per share, respectively[441](index=441&type=chunk) [2. Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=58&type=section&id=2.%20Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2021, other than directors and the chief executive, the company's substantial shareholders held long positions in the company's shares, with Cosmic Stand International Limited and its controlled corporations holding **15.55%**, Beijing Investment Co Ltd and its controlled corporations holding **9.02%**, and Jangho Group Company Limited and its controlled corporations holding **5.34%** equity Table: Substantial Shareholders' Interests in Shares | Shareholder Name/Name | Capacity | Number of Beneficially Owned Shares (shares) | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Cosmic Stand International Limited | Beneficial owner | 945,000,000 | 15.55% | | Beijing Enterprises Health and Medical Resources Group Limited | Interest held by controlled corporation | 945,000,000 | 15.55% | | Beijing Properties (Holdings) Limited | Interest held by controlled corporation | 945,000,000 | 15.55% | | Brilliant Bright Holdings Limited | Interest held by controlled corporation | 945,000,000 | 15.55% | | Beijing Enterprises Real Estate (HK) Limited | Interest held by controlled corporation | 945,000,000 | 15.55% | | Beijing Enterprises Real-Estate Group Limited | Interest held by controlled corporation | 945,000,000 | 15.55% | | Illumination Holdings Limited | Interest held by controlled corporation | 945,000,000 | 15.55% | | Beijing Holdings Limited | Interest held by controlled corporation | 945,000,000 | 15.55% | | Beijing Enterprises Group Company Limited | Interest held by controlled corporation | 945,000,000 | 15.55% | | Beijing Financial Holdings Group Limited | Interest held by controlled corporation | 548,409,806 | 9.02% | | Beijing Financial Investment Holdings Limited | Interest held by controlled corporation | 548,409,806 | 9.02% | | Beijing Investment Co., Limited | Beneficial owner | 548,409,806 | 9.02% | | Ng Kin Nam | Beneficial owner | 401,300,000 | 6.60% | | Jangho Group Company Limited | Interest held by controlled corporation | 324,684,000 | 5.34% | - Cosmic Stand International Limited is wholly owned by Beijing Enterprises Health and Medical Resources Group Limited and ultimately controlled by Beijing Holdings Group Company Limited[451](index=451&type=chunk) - Beijing Investment Co Ltd is wholly owned by Beijing Financial Holdings Group Limited and ultimately controlled by Beijing Financial Investment Holdings Limited[451](index=451&type=chunk) - Jangho Group Company Limited indirectly controls Easy Glory Holding Limited and Advance Finding Investments Limited through its wholly-owned Jangho Curtain Wall Hong Kong Limited[453](index=453&type=chunk) [3. Share Options](index=62&type=section&id=3.%20Share%20Options) As of June 30, 2021, the total number of unexercised share options was **278,000,000**, a decrease from **338,000,000** at the beginning of the period, primarily granted to directors and other employees with exercise periods extending to 2025 or 2026 Table: Share Options | Category | Number of Share Options as of January 1, 2021 (thousand options) | Number of Share Options as of June 30, 2021 (thousand options) | | :--- | :--- | :--- | | Directors | 182,000 | 182,000 | | Other employees and eligible persons | 156,000 | 96,000 | | Total | 338,000 | 278,000 | - The exercise prices of the share options were **HK$0.61** per share (grant date April 2, 2015) and **HK$0.53** per share (grant date January 28, 2016), respectively[455](index=455&type=chunk) - Share options are exercisable from the vesting date until April 1, 2025, and January 27, 2026, respectively (as applicable)[458](index=458&type=chunk) [4. Purchase, Sale or Redemption of the Company's Listed Securities](index=64&type=section&id=4.%20Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2021, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - For the six months ended June 30, 2021, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[460](index=460&type=chunk)[463](index=463&type=chunk) [5. Compliance with the Model Code of the Listing Rules](index=64&type=section&id=5.%20Compliance%20with%20the%20Model%20Code%20of%20the%20Listing%20Rules) The company confirms that, following specific enquiries made to each director, all directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers for the six months ended June 30, 2021 - The company's Board of Directors has adopted the Model Code set out in Appendix 10 of the Listing Rules[461](index=461&type=chunk)[464](index=464&type=chunk) - All directors confirmed compliance with the Model Code for the six months ended June 30, 2021[461](index=461&type=chunk)[464](index=464&type=chunk) [6. Corporate Governance Code](index=64&type=section&id=6.%20Corporate%20Governance%20Code) The company has complied with the code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules throughout the six months ended June 30, 2021 - The company has complied with the code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules throughout the six months ended June 30, 2021[462](index=462&type=chunk)[464](index=464&type=chunk) [7. Audit Committee](index=65&type=section&id=7.%20Audit%20Committee) The Audit Committee, established on April 11, 2002, comprises three independent non-executive directors and is responsible for reviewing the company's financial reporting and internal control principles, having reviewed this interim results announcement and interim report - The Audit Committee was established on April 11, 2002, responsible for reviewing financial reporting and internal control principles[466](index=466&type=chunk)[468](index=468&type=chunk) - Committee members include Mr Tse Man Kit (Chairman), Mr Zhao Gang, and Mr Wu Yongxin, all of whom are independent non-executive directors[467](index=467&type=chunk)[468](index=468&type=chunk) - The Audit Committee has reviewed the company's interim results announcement and interim report for the six months ended June 30, 2021[467](index=467&type=chunk)[468](index=468&type=chunk) [8. Remuneration Committee](index=66&type=section&id=8.%20Remuneration%20Committee) The Remuneration Committee, established on May 23, 2006, aims to ensure the company's remuneration policy attracts, retains, and motivates a high-quality team, with members including Mr Zhao Gang (Chairman), Mr Tse Man Kit, and Mr Wu Yongxin - The Remuneration Committee was established on May 23, 2006, aiming to ensure the company can attract, retain, and motivate a high-quality team[470](index=470&type=chunk)[472](index=472&type=chunk) - Committee members include Mr Zhao Gang (Chairman), Mr Tse Man Kit, and Mr Wu Yongxin, all of whom are independent non-executive directors[470](index=470&type=chunk)[472](index=472&type=chunk) [9. Nomination Committee](index=66&type=section&id=9.%20Nomination%20Committee) The Nomination Committee, established on May 23, 2006, is responsible for identifying and nominating suitable candidates for directorships and reviewing the Board's structure, size, and composition, with members including Mr Wu Yongxin (Chairman), Mr Zhao Gang, Mr Tse Man Kit, and Mr Zhu Shixing - The Nomination Committee was established on May 23, 2006, responsible for identifying and nominating suitable candidates for directorships and reviewing the Board's structure, size, and composition[471](index=471&type=chunk) - Committee members include Mr Wu Yongxin (Chairman), Mr Zhao Gang, Mr Tse Man Kit (Independent Non-executive Director), and Mr Zhu Shixing (Executive Director)[471](index=471&type=chunk) [10. Investment and Risk Management Committee](index=67&type=section&id=10.%20Investment%20and%20Risk%20Management%20Committee) The Investment and Risk Management Committee, established on October 8, 2014, is primarily responsible for overseeing risk management and evaluating the Group's major investment and funding projects, comprising Mr Gu Shanchao (Chairman), Mr Zhu Shixing, Mr Liu Xueheng, and Mr Lam Ka Tak - The Investment and Risk Management Committee was established on October 8, 2014, with primary duties including overseeing risk management and evaluating the Group's major investment and funding projects[475](index=475&type=chunk)[478](index=478&type=chunk) - Committee members include Mr Gu Shanchao (Chairman), Mr Zhu Shixing, Mr Liu Xueheng, and Mr Lam Ka Tak[476](index=476&type=chunk)[478](index=478&type=chunk) [11. Changes in Directors' Biographical Details Under Rule 13.51B(1) of Listing Rules](index=67&type=section&id=11.%20Changes%20in%20Directors'%20Biographical%20Details%20Under%20Rule%2013.51B(1)%20of%20Listing%20Rules) Pursuant to Rule 13.51B(1) of the Listing Rules, since the date of the 2020 annual report, First Chemical Holdings (Cayman) Co Ltd, where Executive Director Mr Hu Xiangqi serves as Chairman, was listed on the Taiwan Stock Exchange on June 25, 2021 - Executive Director Mr Hu Xiangqi, who serves as Chairman of First Chemical Holdings (Cayman) Co Ltd, was listed on the Taiwan Stock Exchange on June 25, 2021 (stock code: 2250)[477](index=477&type=chunk) Corporate Information [Board of Directors](index=68&type=section&id=Board%20of%20Directors) The company's Board of Directors comprises executive and independent non-executive directors, including Mr Zhu Shixing (Chairman), Mr Liu Xueheng (Co-Chief Executive Officer), and Mr Zhang Jingming (Co-Chief Executive Officer) - Executive Directors include Mr Zhu Shixing (Chairman), Mr Liu Xueheng (Co-Chief Executive Officer), Mr Zhang Jingming (Co-Chief Executive Officer), Mr Xiao Jianwei, Mr Gu Shanchao, Mr Hu Xiangqi, and Mr Wang Zhengchun[480](index=480&type=chunk) - Independent Non-executive Directors include Mr Zhao Gang, Mr Kang Shixue, Mr Tse Man Kit, Mr Wu Yongxin, and Mr Zhang Yunzhou[480](index=480&type=chunk) [Authorised Representatives](index=68&type=section&id=Authorised%20Representatives) The company's authorized representatives are Mr Lam Ka Tak and Mr Liu Xueheng - The authorized representatives are Mr Lam Ka Tak and Mr Liu Xueheng[480](index=480&type=chunk) [Company Secretary](index=68&type=section&id=Company%20Secretary) The company secretary is Mr Lam Ka Tak - The company secretary is Mr Lam Ka Tak[480](index=480&type=chunk) [Audit Committee](index=68&type=section&id=Audit%20Committee) The Audit Committee members include Mr Tse Man Kit (Chairman), Mr Zhao Gang, and Mr Wu Yongxin - The Audit Committee members include Mr Tse Man Kit (Committee Chairman), Mr Zhao Gang, and Mr Wu Yongxin[480](index=480&type=chunk) [Remuneration Committee](index=68&type=section&id=Remuneration%20Committee) The Remuneration Committee members include Mr Zhao Gang (Chairman), Mr Tse Man Kit, and Mr Wu Yongxin - The Remuneration Committee members include Mr Zhao Gang (Committee Chairman), Mr Tse Man Kit, and Mr Wu Yongxin[480](index=480&type=chunk) [Nomination Committee](index=68&type=section&id=Nomination%20Committee) The Nomination Committee members include Mr Wu Yongxin (Chairman), Mr Zhao Gang, Mr Tse Man Kit, and Mr Zhu Shixing - The Nomination Committee members include Mr Wu Yongxin (Committee Chairman), Mr Zhao Gang, Mr Tse Man Kit, and Mr Zhu Shixing[480](index=480&type=chunk) [Investment and Risk Management Committee](index=68&type=section&id=Investment%20and%20Risk%20Management%20Committee) The Investment and Risk Management Committee members include Mr Gu Shanchao (Chairman), Mr Liu Xueheng, Mr Zhu Shixing, and Mr Lam Ka Tak - The Investment and Risk Management Committee members include Mr Gu Shanchao (Committee Chairman), Mr Liu Xueheng, Mr Zhu Shixing, and Mr Lam Ka Tak[480](index=480&type=chunk) [Auditors](index=69&type=section&id=Auditors) The company's auditors are Ernst & Young Certified Public Accountants - The auditors are Ernst & Young Certified Public Accountants[482](index=482&type=chunk) [Legal Adviser](index=69&type=section&id=Legal%20Adviser) The company's legal adviser is Sidley Austin - The legal adviser is Sidley Austin[482](index=482&type=chunk) [Stock Code](index=69&type=section&id=Stock%20Code) The company's stock code is 2389 - The stock code is **2389**[482](index=482&type=chunk) [Website](index=69&type=section&id=Website) The company's official website is www.bjhl.com.hk - The company's website is www.bjhl.com.hk[482](index=482&type=chunk) [Principal Bankers](index=69&type=section&id=Principal%20Bankers) The company's principal bankers include Bank of Beijing, CITIC Bank International, Shanghai Pudong Development Bank, and Bank of Jinzhou - Principal bankers include Bank of Beijing, CITIC Bank International, Shanghai Pudong Development Bank, and Bank of Jinzhou[482](index=482&type=chunk) [Registered Office](index=69&type=section&id=Registered%20Office) The company's registered office is located in the Cayman Islands - The registered office is located at Cricket Square, Hutchins Drive, P.O. Box 2681, KY1-1111, Grand Cayman, Cayman Islands[482](index=482&type=chunk) [Head Office and Principal Place of Business](index=69&type=section&id=Head%20Office%20and%20Principal%20Place%20of%20Business) The company's head office and principal place of business are located at Unit 2704, 27/F, 909 Cheung Sha Wan Road, Cheung Sha Wan, Kowloon, Hong Kong - The head office and principal place of business are located at Unit 2704, 27/F, 909 Cheung Sha Wan Road, Cheung Sha Wan, Kowloon, Hong Kong[482](index=482&type=chunk) [Principal Share Registrar and Transfer Office](index=69&type=section&id=Principal%20Share%20Registrar%20and%20Transfer%20Office) The company's principal share registrar and transfer office is Suntera (Cayman) Limited - The principal share registrar and transfer office is Suntera (Cayman) Limited[482](index=482&type=chunk) [Hong Kong Branch Share Registrar and Transfer Office](index=69&type=section&id=Hong%20Kong%20Branch%20Share%20Registrar%20and%20Transfer%20Office) The company's Hong Kong branch share registrar and transfer office is Union Registrars Limited - The Hong Kong branch share registrar and transfer office is Union Registrars Limited[482](index=482&type=chunk)
北京健康(02389) - 2020 - 年度财报
2021-04-15 11:35
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 : 2389 2020 Annual Report 年 報 Contents 目錄 | --- | --- | --- | --- | |-------|-------|-------|-----------------------------------------------| | | | | | | 2 | Corporate Information 公司資料 | 56 | Independent Auditor's Report 獨立核數師報告 | | 4 | Corporate Structure 公司架構 | 63 | Consolidated Statement of Profit or Loss and Other Comprehensive Income 綜合損益及其他全面收益表 | | 5 | Financial Summary 財務摘要 | 66 | Consolidated Statement of Finan ...
北京健康(02389) - 2020 - 中期财报
2020-09-18 04:09
上控醫療健康產業集團有限公司 Beijing Enterprises Medical And Heath Industry Group Limited 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 : 2389 Interim Report 中 期 報 暗 CONTENTS 目錄 Unaudited Interim Financial Information 未經審核中期財務資料 Interim Condensed Consolidated: 中期簡明綜合: 2 Statement of Profit or Loss and Other Comprehensive Income 損益及其他全面收益表 5 Statement of Financial Position 財務狀況表 7 Statement of Changes in Equity 權益變動表 9 Statement of Cash Flows 現金流量表 12 Notes to Interim Condensed C ...
北京健康(02389) - 2019 - 年度财报
2020-04-27 09:45
北控醫療情療產業集團有限公 Beijing Enterprises Medical And Health Industry Group Limited 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 : 2389 REALIZE THE DREAM OF HEALTH RESTORATION 讓 健 康 回 歸 Annual Report 2019 年報 CONTENTS 目錄 2 Corporate Information 公司資料 4 Corporate Structure 公司架構 5 Financial Summary 財務摘要 6 Chairman's Statement 主席報告 9 Management Discussion and Analysis 管理層討論與分析 25 Corporate Governance Report 企業管治報告 42 Directors and Senior Management 董事及高級管理層 47 Directors' Repor ...
北京健康(02389) - 2019 - 中期财报
2019-09-18 04:04
Financial Performance - Revenue for the six months ended June 30, 2019, was HK$69,955,000, a decrease of 16.5% from HK$83,682,000 in the same period of 2018[8] - Gross profit for the same period was HK$26,263,000, down 10.6% from HK$29,330,000 in 2018[8] - Loss before tax was HK$72,098,000 compared to a profit of HK$5,259,000 in the prior year[8] - The loss for the period amounted to HK$71,818,000, significantly higher than the loss of HK$15,279,000 in 2018[8] - Total comprehensive loss attributable to owners of the parent was HK$77,071,000, compared to HK$39,552,000 in the same period last year[16] - Basic and diluted loss per share attributable to ordinary equity holders of the parent was HK(1.00) cents, compared to HK(0.15) cents in 2018[16] - The company reported other comprehensive loss for the period of HK$6,803,000, compared to HK$17,649,000 in the previous year[12] - The total comprehensive loss for the period was HK$89,722,000, compared to HK$49,335,000 in 2018[16] Assets and Liabilities - Total non-current assets increased to HK$2,475,153,000 from HK$2,415,954,000, reflecting a growth of approximately 2.5%[19] - Current assets decreased to HK$1,080,510,000 from HK$1,336,764,000, representing a decline of about 19.2%[19] - Total current liabilities slightly decreased to HK$346,050,000 from HK$350,637,000, showing a reduction of approximately 1.6%[19] - Net current assets decreased to HK$734,460,000 from HK$986,127,000, indicating a decline of around 25.5%[19] - Total non-current liabilities decreased significantly to HK$161,970,000 from HK$269,036,000, a reduction of about 39.9%[22] - Net assets decreased to HK$3,047,643,000 from HK$3,133,045,000, reflecting a decline of approximately 2.7%[22] - Cash and cash equivalents decreased to HK$471,294,000 from HK$764,118,000, a drop of about 38.4%[19] - Total equity decreased to HK$3,047,643,000 from HK$3,133,045,000, indicating a decline of approximately 2.7%[22] - Interest-bearing bank borrowings were reduced to zero from HK$117,553,000, indicating a complete elimination of this liability[22] Future Outlook and Strategy - The company has not provided specific guidance for future performance or new product developments in the report[6] - The company reported a total revenue of $11,657 million for the quarter, reflecting a significant increase compared to previous periods[174] - User data showed a growth of 31% year-over-year, with active users reaching 520 million[175] - The company provided a future outlook, projecting a revenue growth of 15% for the next quarter, driven by new product launches and market expansion[176] - New product development includes the introduction of three innovative technologies aimed at enhancing user experience, with an expected investment of $4,263 million in R&D[187] - Market expansion efforts are focused on entering two new regions, which are anticipated to contribute an additional $12,651 million in revenue over the next fiscal year[177] - The company is considering strategic acquisitions to bolster its market position, with a budget of $71,671 million allocated for potential deals[176] Operational Efficiency and Shareholder Value - The gross margin for the quarter was reported at 85%, indicating strong operational efficiency[178] - The company plans to increase its marketing budget by 20% to support new product launches and brand awareness initiatives[179] - Shareholder returns are expected to increase by 10% due to improved profitability and cash flow management strategies[180] - The company has initiated a share buyback program worth $3,509 million to enhance shareholder value[184] Audit and Review - The financial statements have been reviewed by the company's audit committee but remain unaudited[6] - The company reported a total comprehensive loss for the period, reflecting challenges in the market environment[22]
北京健康(02389) - 2018 - 年度财报
2019-04-17 09:19
Financial Performance - Revenue for the year ended 31 December 2018 was HK$178,885,000, representing an increase from HK$130,625,000 in 2017, which is a growth of approximately 37%[11] - Profit attributable to the owners of the parent for 2018 was HK$43,450,000, a significant recovery from a loss of HK$68,015,000 in 2017[11] - Total assets as of 31 December 2018 were HK$3,752,718,000, compared to HK$3,890,963,000 in 2017, indicating a decrease of about 3.5%[11] - The Group's equity attributable to owners of the parent was HK$2,847,967,000 as of 31 December 2018, a slight decrease from HK$2,888,193,000 in 2017[11] - The gross profit for the Group was approximately HK$57,246,000, with a gross profit margin of 32% for 2018, compared to 36.4% in 2017[90] - Other income and gains for the year were approximately HK$367,138,000, a decrease of 41.6% from HK$629,054,000 in 2017[92] - Gains from the disposal of subsidiaries amounted to HK$223,899,000, a decrease of 61.1% compared to HK$576,121,000 in 2017[93] Assets and Liabilities - The Group's net assets exceeded HK$3 billion, showcasing high asset quality and strong risk resistance[15] - Net assets as of December 31, 2018, amounted to approximately HK$3,133,045,000, a decrease of approximately HK$36,968,000 from HK$3,170,013,000 in 2017[97] - Total debt decreased by approximately HK$55,896,000 to HK$187,148,000 as of December 31, 2018, compared to HK$243,044,000 in 2017[97] - The Group's investment properties had a carrying amount of HK$367,838,000 as of December 31, 2018, an increase of 11.8% from HK$328,987,000 in 2017[99] - The Group's land use rights had a carrying amount of HK$239,545,000 as of December 31, 2018, an increase of 55.9% from HK$153,477,000 in 2017[99] Business Operations and Strategy - The Group achieved its goals in major business sectors including intelligent geriatric care, medical care, health industrial parks, and sports and entertainment[19] - The Group aims to expand market size and establish a leading brand in the health industry[14] - The Group plans to adjust its overall strategy to focus on steady advancement and innovation in response to market changes[24] - The Group plans to focus on building a leading-scale operation system in the geriatric care industry, aiming for rapid market share expansion and stable profitability in the next year[39] - The Group aims to expand the preventive health management business leveraging existing resources and data advantages in 2019[58] Geriatric Care Services - As of the end of 2018, the Group provided 2,098 beds for geriatric care services, serving over 559,000 members across 9 geriatric care institutions and 16 community care centers[20] - The average occupancy rate of elderly care centers exceeded 80%, with specific facilities achieving a 100% occupancy rate[31] - The geriatric care business under the "Golden Sun" brand has over 559,000 elderly service members, 352 community service stations, 16 care centers, and 9 nursing institutions with approximately 2,098 beds as of December 31, 2018[34] - The Group's geriatric care business is focused on developing affordable and comfortable living conditions for the elderly in China[26] - The market for geriatric care institutions is expected to see an increase in for-profit institutions as the Chinese government guides the industry towards marketization[32] Investments and Projects - The Group secured additional funding of HK$267 million for the development of a health industrial park through a partnership with an internationally renowned company[20] - The Group successfully acquired land for a mid to high-end boutique hospital in Dali City, targeting chronic disease management and health rehabilitation services[46] - The Dali project has completed overall positioning and obtained approval from the Dali Prefecture Health Commission, with preliminary cooperation intentions established with local universities and hospitals[47] - The Group is involved in seven development projects across Beijing, Shanghai, Dali, and Canada, covering a total site area of approximately 449,000 square meters[69] - The Group's health industry investment focuses on biotechnology, pharmaceuticals, medical services, and medical tourism, with significant investments in circulating tumor cell detection technology[75][76] Corporate Governance - The Company has complied with most principles set out in the Corporate Governance Code, with a noted deviation from code provision A.6.7 due to two independent non-executive directors being unable to attend the annual general meeting[111] - The Company emphasizes the importance of good corporate governance for its success and sustainability, committing to high standards[111] - The Board currently comprises 12 members, including 7 Executive Directors and 5 Independent Non-executive Directors[114] - The Company has adopted the Model Code for Securities Transactions for relevant employees, with no incidents of non-compliance reported[113] - The Company has established a risk management manual outlining the responsibilities of management, the board of directors, and the Audit Committee in risk management[173] Communication and Investor Relations - The Company encourages two-way communication with investors and provides timely updates on significant developments through its website[108] - The Company ensures compliance with legal and regulatory requirements, as well as adherence to the Corporate Governance Code[124] - The Company emphasizes the importance of effective communication with shareholders to enhance investor relations and understanding of business performance and strategies[189] - The Company maintains a website for up-to-date information on business operations, financial information, and corporate governance practices[190] Management and Board Composition - The Chairman of the Board is Mr. Zhu Shi Xing, with Joint Chief Executive Officers Mr. Liu Xue Heng and Mr. Zhang Jing Ming, whose roles and responsibilities are clearly defined[117] - Independent Non-executive Directors are appointed for a specific term of 3 years and are subject to retirement by rotation at least once every three years[119] - The Company has received annual confirmations of independence from all Independent Non-executive Directors, ensuring their independence[119] - The Company has made changes in the composition of the Board during the year ended December 31, 2018, as detailed in the Directors' Report[114] - The Company has adopted a Board Diversity Policy to ensure a diverse mix of skills, knowledge, and experience among Board members[143]