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 ...

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]

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]