Core Points - GAMECO has officially obtained ISO27001 certification, becoming one of the few aircraft maintenance companies in the industry to achieve this international standard, marking a significant step towards its goal of becoming a world-class aviation maintenance enterprise [1][2] - ISO27001 is an international standard aimed at helping organizations establish, implement, maintain, and continuously improve their information security management systems, focusing on risk management principles to protect the confidentiality, integrity, and availability of information [1] - Under the requirements of its shareholder, China Southern Airlines, GAMECO has been mandated to enhance its data processing compliance management system, including information security aspects, with some international clients requiring ISO27001 certification as a prerequisite for service providers [1] Company Initiatives - GAMECO formed a project team to advance the certification process, achieving efficient implementation through collaboration across departments, identifying over 17,000 information assets, assessing and addressing 2,500 risks, conducting more than 10 training sessions, and developing 45 system manuals and procedures [1] - The successful certification enhances GAMECO's credibility and competitiveness within the industry, allowing for accelerated application of information technology in the aviation maintenance sector, thereby injecting new momentum for high-quality development [2]

Company Overview - Green International Holdings Limited is an investment holding company primarily engaged in providing healthcare and medical services, beauty and fitness services, and comprehensive financial services including lending, securities brokerage, and asset management [2]. Financial Performance - As of December 31, 2024, Green International Holdings reported total revenue of 49.0894 million, representing a year-on-year growth of 8.56% [1]. - The company recorded a net profit attributable to shareholders of -0.7473 million, showing a significant year-on-year improvement of 92.41% [1]. - The gross profit margin stood at 59.8%, while the debt-to-asset ratio was 59.73% [1]. Stock Performance - As of May 27, the stock price of Green International Holdings closed at 0.6 HKD per share, marking an increase of 31.87% with a trading volume of 120,200 shares and a turnover of 68,100 HKD [1]. - Over the past month, the stock has experienced a cumulative decline of 20.18%, while year-to-date, it has increased by 12.35%, underperforming the Hang Seng Index by 16.06% [1]. Industry Valuation - The average price-to-earnings (P/E) ratio for the healthcare equipment and services industry is -19.72 times, with a median of 0.3 times [1]. - Green International Holdings has a P/E ratio of -372.06 times, ranking 53rd in the industry [1]. - Comparatively, other companies in the sector have the following P/E ratios: Giant Medical Holdings at 0.23 times, Jingjiu Health at 0.38 times, Yongsheng Medical at 3.97 times, Global Medical at 4.58 times, and China Regenerative Medicine at 5.14 times [1].

Financial Performance - Total revenue increased from HKD 48.83 million in 2023 to HKD 53.01 million in 2024, representing an increase of approximately 8.56%[16] - Net profit rebounded from a loss of HKD 8.79 million in 2023 to a profit of HKD 2.87 million in 2024[7] - Gross profit for the year was approximately HKD 31.70 million, up about 9.96% from HKD 28.83 million in 2023, with a gross margin of 59.80%[18] - Direct costs and operating expenses rose to approximately HKD 21.31 million, an increase of about 6.54% compared to HKD 20.00 million in 2023[17] - Sales expenses decreased by approximately 14.07% to about HKD 11.40 million from HKD 13.27 million in 2023 due to cost control measures[19] - Administrative expenses increased to approximately HKD 23.47 million, up about 6.74% from HKD 21.99 million in 2023, primarily due to increased depreciation costs after the relocation of Yiyang Hospital[20] - The group's financing costs for the year were approximately HKD 1,688,000, a decrease from HKD 2,278,000 in 2023[24] - The net profit for the year was approximately HKD 2,871,000, compared to a loss of HKD 8,791,000 in 2023[25] Business Segments - The healthcare and medical business segment benefited from favorable government policies, particularly in Hunan Province, which improved reimbursement rates for dialysis services[7] - The company closed two unprofitable beauty salons and scaled down another to reduce expenses in the beauty and fitness segment[13] - The beauty and fitness business cash-generating unit reported impairment losses of approximately HKD 2,442,000 for trademarks and professional skills, HKD 209,000 for properties, and HKD 1,692,000 for equipment and right-of-use assets in the current year[23] Assets and Liabilities - As of December 31, 2024, the group had total assets of approximately HKD 113,445,000 and total liabilities of approximately HKD 25,108,000, resulting in a leverage ratio of approximately 22.13%[30] - The current ratio as of December 31, 2024, was approximately 1.30, compared to 1.24 as of December 31, 2023[30] - The group had cash and bank balances of approximately HKD 63,463,000 as of December 31, 2024, down from HKD 66,826,000 in 2023[31] - The debt-to-equity ratio as of December 31, 2024, was approximately 63%, a significant improvement from 123% in 2023[32] - The group did not engage in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the year[34] - The group has no significant contingent liabilities as of December 31, 2024[36] Shareholder Information - The company does not recommend any dividend payment for the current year, maintaining a dividend of zero for 2023[46] - The total reserves available for distribution to equity shareholders as of December 31, 2024, is zero HKD, unchanged from 2023[63] - The company did not recommend a final dividend for the year ending December 31, 2024, consistent with the previous year where no dividend was paid[60] - As of December 31, 2024, the total issued shares amount to 659,894,693[75] - Liu Dong holds 25,146,000 shares, representing approximately 3.81% of the total issued shares[75] - Zhou Cuiqiong holds 370,071,730 shares, representing approximately 56.08% of the total issued shares[75] - Wei Xin International Limited, controlled by Zhou Cuiqiong, holds 370,071,730 shares, also representing approximately 56.08% of the total issued shares[76] - Chang Jian Limited, a subsidiary of Wei Xin, holds 67,647,058 shares, representing approximately 10.25% of the total issued shares[76] - The company did not engage in any share buybacks, sales, or redemptions during the year[66] - There were no related party transactions reported during the year[67] Corporate Governance - The board of directors presented the annual report and audited consolidated financial statements for the year ending December 31, 2024[56] - The board includes two executive directors, three non-executive directors, and three independent non-executive directors, providing a balanced distribution of expertise[110] - The company has established procedures for directors to seek independent advice to fulfill their responsibilities, with costs covered by the company[109] - The company has confirmed that all directors have adhered to the standards of conduct for trading securities as outlined in the listing rules[120] - The company has arranged appropriate liability insurance for its directors and senior management, with coverage reviewed annually[126] - The board has established three committees: the audit committee, the remuneration committee, and the nomination committee, to oversee various aspects of the group[130] - The audit committee consists of three independent non-executive directors, ensuring compliance with applicable accounting standards and listing rules[102] - The audit committee's main functions include reviewing financial statements and reports, and ensuring the effectiveness of the company's financial reporting and risk management systems[132] - The remuneration committee consists of four members, including the chairman and three independent non-executive directors, responsible for reviewing and approving executive compensation policies[137] - The nomination committee evaluates the performance of executive directors and reviews the remuneration policies for directors and senior management[139] Risk Management and Internal Controls - The company has engaged an external consultant to maintain and execute internal audit functions due to the absence of an internal audit department[107] - The board monitors risk management and internal control systems, regularly reviewing their effectiveness[109] - The company conducts an annual risk assessment to identify potential strategic, operational, financial, and compliance risks, categorizing them as high, medium, or low based on their likelihood and impact on business objectives[146] - The internal control review plan prioritizes identified risks for annual internal monitoring, with the board confirming the effectiveness and adequacy of the risk management and internal control systems for the year[147] - The company has established an internal audit function to enhance its risk management and internal control systems[145] Environmental, Social, and Governance (ESG) - The company emphasizes environmental protection and is committed to sustainable practices, including promoting the use of eco-friendly paper and reducing energy consumption[100] - The company is committed to sustainable development principles and aims to balance economic growth, environmental protection, and social responsibility[173] - The company has established a governance framework to integrate environmental, social, and governance factors into its decision-making processes[174] - The board of directors is responsible for overseeing the company's environmental, social, and governance strategies and reporting[175] - The company has adopted a shareholder communication policy to ensure timely and equal access to information for shareholders and potential investors[161] - The company conducted an annual materiality assessment in 2024 to ensure the relevance of its ESG strategies[180] - The company aims to reduce greenhouse gas emissions by 5% by 2026, using 2021 as the baseline[188] - The company has implemented measures to manage energy consumption, including maintaining air conditioning at 25 degrees Celsius and promoting carpooling[197] - The company adheres to all relevant environmental laws and regulations in China, ensuring compliance with the latest environmental standards[185] - The company promotes a paperless office environment to reduce waste and improve energy efficiency[200] - The company has established a waste management strategy that includes recycling and proper disposal of electronic waste[191] - The company actively engages with stakeholders to identify significant environmental, social, and governance issues[182] - The company has a comprehensive environmental management policy to achieve its environmental goals[185]

Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 53,010,000, an increase of 8.9% compared to HKD 48,831,000 in 2023[4] - Gross profit for the same period was HKD 31,698,000, up from HKD 28,828,000, reflecting a gross margin improvement[4] - The net profit for the year was HKD 2,871,000, a significant recovery from a net loss of HKD 8,791,000 in 2023[4] - The company reported a basic and diluted loss per share of HKD 0.12, improved from HKD 1.61 in the previous year[4] - Total operating profit for the company reached HKD 11,191,000 in 2024, a turnaround from a loss of HKD 613,000 in 2023[22] - The group reported a net profit of approximately HKD 2,871,000 for the year, compared to a loss of HKD 8,791,000 in 2023[56] Revenue Breakdown - The group's revenue for the year ending December 31, 2024, reached HKD 53,010,000, with healthcare and medical services contributing HKD 39,705,000 and beauty and fitness services contributing HKD 13,305,000[19] - For the year ending December 31, 2023, the group's revenue was HKD 48,831,000, with healthcare and medical services at HKD 31,212,000 and beauty and fitness services at HKD 17,619,000, indicating a year-over-year growth in total revenue of approximately 8.9%[19] - Total revenue for the healthcare and medical business was HKD 39,705,000 in 2024, up from HKD 31,212,000 in 2023, reflecting a growth of 27.9%[29] - Total revenue for the beauty and fitness business decreased to HKD 13,305,000 in 2024 from HKD 17,619,000 in 2023, a decline of 24.5%[29] Assets and Liabilities - Total assets decreased to HKD 113,445,000 from HKD 136,201,000, indicating a reduction in overall asset base[6] - Total liabilities were reduced to HKD 67,766,000 from HKD 92,589,000, showing a decrease in financial obligations[7] - As of December 31, 2024, the group has total assets of approximately HKD 113,445,000 and total liabilities of approximately HKD 25,108,000, resulting in a leverage ratio of about 22.13%[62] - The current ratio as of December 31, 2024, is approximately 1.30, compared to 1.24 as of December 31, 2023[62] Operational Highlights - The company plans to focus on market expansion and new product development in the upcoming fiscal year[3] - The management highlighted ongoing efforts in technology research and development to enhance competitive positioning[3] - The healthcare and medical segment operates blood dialysis centers and hospitals, while the beauty and fitness segment focuses on the sale of beauty and fitness products and related services[20] - The healthcare and medical services segment continues to operate hospitals in Hunan Province, China, optimizing supply chain procurement and increasing the use of domestic medical supplies[45] Expenses and Costs - Direct costs and operating expenses amounted to approximately HKD 21,312,000, reflecting an increase of about 6.54% from HKD 20,003,000 in 2023[49] - Selling expenses decreased to approximately HKD 11,403,000, down about 14.07% from HKD 13,270,000 in 2023 due to cost control measures[51] - Administrative expenses increased to approximately HKD 23,471,000, up about 6.74% from HKD 21,989,000 in 2023, primarily due to increased depreciation costs after the relocation of a hospital[52] - Employee benefit expenses increased to HKD 24,365,000 in 2024 from HKD 22,728,000 in 2023, marking an increase of about 7.2%[32] - Financing costs decreased to HKD 1,688,000 in 2024 from HKD 2,278,000 in 2023, a reduction of 26%[31] Corporate Governance and Compliance - The financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards, ensuring compliance with local accounting regulations[11] - The group has adopted several revised Hong Kong Financial Reporting Standards effective from January 1, 2024, which do not have a significant impact on the current and prior financial positions[13] - The company confirmed compliance with the Corporate Governance Code, except for the absence of an internal audit function due to operational scale[81] - An external consultant has been hired to establish an internal audit function and assist in reviewing the adequacy and effectiveness of the risk management and internal control systems[82] - The audit committee consists of three independent non-executive directors, with Mr. Cai Davi serving as the chairman, ensuring compliance with applicable accounting standards[85] Shareholder Information - The company did not declare any dividends for the year ending December 31, 2024, consistent with the previous year[37] - The company has maintained a weighted average number of ordinary shares issued at 659,894,693 for both 2024 and 2023, indicating stability in share capital[43] - The board does not recommend the payment of any dividends for the year[76] Employee and Operational Changes - The group employed 180 employees in Hong Kong and China as of December 31, 2024[77] - The group closed two loss-making beauty salons and reduced the scale of one salon in 2024 to cut costs[46] - The company did not buy, sell, or redeem any of its listed securities during the year[80] Miscellaneous - There are no significant ongoing or threatened litigations against the group as of the announcement date[78] - The company expresses gratitude to its directors, employees, shareholders, customers, suppliers, banks, and business partners for their support[88]

Company Overview - Green International Holdings Limited is an investment holding company primarily engaged in providing (i) healthcare and medical services, (ii) beauty and fitness services, and (iii) comprehensive financial services including lending, securities brokerage, and asset management [3] Stock Performance - As of March 31, the Hang Seng Index fell by 1.31%, closing at 23,119.58 points. Green International Holdings closed at HKD 0.5 per share, up by 11.11%, with a trading volume of 70,000 shares and a turnover of HKD 36,000, showing a volatility of 6.67% [1] - Over the past month, Green International Holdings has seen a cumulative increase of 12.5%, while year-to-date, it has risen by 11.11%, underperforming the Hang Seng Index which has increased by 16.78% [2] Financial Performance - For the fiscal year ending June 30, 2024, Green International Holdings reported total revenue of HKD 23.6576 million, reflecting a year-on-year growth of 3.23%. However, the net profit attributable to shareholders was a loss of HKD 1.3891 million, which is an improvement of 66.67% compared to the previous year. The gross margin stood at 54.14%, and the debt-to-asset ratio was 68.85% [2] Valuation Metrics - Currently, there are no institutional investment ratings for Green International Holdings. The average price-to-earnings (P/E) ratio for the healthcare equipment and services industry is -18.88 times, with a median of 2.45 times. Green International Holdings has a P/E ratio of -39.17 times, ranking 63rd in the industry [3]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 25,921 thousand, a 3.2% increase from HKD 25,109 thousand in the same period of 2023[24] - Gross profit for the same period was HKD 14,034 thousand, up 14.9% from HKD 12,210 thousand year-on-year[24] - Loss before tax decreased to HKD 1,681 thousand, compared to a loss of HKD 4,789 thousand in the previous year, representing a 64.9% improvement[24] - Total comprehensive loss for the period was HKD 1,999 thousand, significantly reduced from HKD 5,077 thousand in the prior year, marking a 60.7% decrease[25] - The company reported a basic and diluted loss per share of HKD 0.23, an improvement from HKD 0.69 in the same period last year[24] - The group reported a net loss of HKD 1,609 million for the six months ended June 30, 2024, compared to a net loss of HKD 4,704 million for the same period in 2023, reflecting a reduction of 65.8%[46] - The group's net loss for the period was approximately HKD 1,609,000, a reduction of about 65.80% compared to HKD 4,704,000 in the previous year, primarily due to lower administrative expenses[77] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 133,585 thousand, down from HKD 136,201 thousand at the end of 2023[26] - Current liabilities increased to HKD 66,153 thousand from HKD 64,551 thousand, reflecting a 2.5% rise[27] - Non-current assets decreased to HKD 54,416 thousand from HKD 56,183 thousand, a decline of 3.1%[26] - The company’s equity attributable to owners decreased from HKD (986,479) thousand at the beginning of the period to HKD (991,045) thousand by June 30, 2024[28] - As of June 30, 2024, the group had total assets of approximately HKD 133,585,000 and liabilities of about HKD 49,840,000, resulting in a debt-to-asset ratio of approximately 37.31%[82] - The current ratio as of June 30, 2024, was approximately 1.20, with current assets of about HKD 79,169,000 exceeding current liabilities of HKD 66,153,000[82] Cash Flow - For the six months ended June 30, 2024, the net cash generated from operating activities was HKD 3,089 thousand, compared to a net cash used of HKD 4,415 thousand in the same period of 2023[29] - The total cash and cash equivalents as of June 30, 2024, amounted to HKD 65,356 thousand, a decrease from HKD 72,265 thousand as of June 30, 2023[29] - Cash and cash equivalents decreased to HKD 65,356 thousand from HKD 66,826 thousand, a decline of 2.2%[26] - The cash flow from investing activities for the six months ended June 30, 2024, was HKD 1,223 thousand, compared to HKD 540 thousand in the same period of 2023[29] Segment Performance - The healthcare and medical segment generated revenue of HKD 1,882 million for the six months ended June 30, 2024, compared to HKD 1,187 million in the same period of 2023, representing a growth of 58.7%[46] - The beauty and fitness segment reported revenue of HKD 460 million for the six months ended June 30, 2024, down from HKD 1,704 million in the same period of 2023, indicating a decline of 73.0%[46] - The beauty and fitness business performance remained sluggish due to a sharp decline in the service industry and weak consumer market in China[69] Operational Changes and Strategies - The company aims to enhance market expansion and product development strategies in the upcoming quarters[19] - The group plans to close one beauty and fitness business location in the second half of 2024 to optimize cost efficiency and ensure strategic placement of its stores[70] - The company has faced challenges from market competitors in its healthcare and medical business segment[67] - The company has no immediate plans for significant acquisitions or expansions due to the cautious approach adopted in response to healthcare system reforms[79] Financial Risks and Compliance - The company continues to face various financial risks, including foreign exchange risk, credit risk, liquidity risk, and cash flow and fair value interest rate risk[37] - The company has adopted revised Hong Kong Financial Reporting Standards effective from January 1, 2024, which did not result in significant changes to the financial statements[34] - The board confirms compliance with the standards for securities trading as per the listing rules for the six months ending June 30, 2024[103] Shareholder Information - The board did not recommend any dividend payment for the six months ended June 30, 2024, consistent with the previous year[55] - The company expresses gratitude to shareholders, customers, suppliers, and banks for their continued support during the reporting period[106] Audit and Governance - The company has engaged an external consultant for internal audit functions, ensuring the adequacy and effectiveness of the risk management and internal control systems[102] - The audit committee consists of three independent non-executive directors, with one member holding recognized accounting qualifications and extensive experience in auditing and accounting[104] Employment and Legal Matters - The company employed 181 staff in Hong Kong and China as of June 30, 2024[93] - There were no significant ongoing or threatened litigations against the company or its subsidiaries[94]

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of HKD 25,921,000, an increase of 3.2% compared to HKD 25,109,000 for the same period in 2023[2] - Gross profit for the same period was HKD 14,034,000, representing a gross margin of 54.2%, up from HKD 12,210,000 in 2023[2] - The net loss for the six months ended June 30, 2024, was HKD 1,609,000, a significant improvement from a net loss of HKD 4,704,000 in the prior year[3] - Basic and diluted loss per share for the period was HKD 0.23, compared to HKD 0.69 for the same period in 2023[2] - The net loss for the period was approximately HKD 1,609,000, a reduction of about 65.80% compared to HKD 4,704,000 in the previous year[36] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 133,585,000, a decrease from HKD 136,201,000 as of December 31, 2023[4] - The company's cash and cash equivalents stood at HKD 65,356,000, down from HKD 66,826,000 at the end of 2023[4] - Non-current liabilities decreased to HKD 25,815,000 from HKD 28,038,000 in the previous period[5] - Current liabilities increased slightly to HKD 66,153,000 from HKD 64,551,000 as of December 31, 2023[5] - The company reported a total equity of HKD 41,617,000, down from HKD 43,612,000 at the end of 2023[4] - The group's liabilities as of June 30, 2024, are approximately HKD 49.840 million, down from HKD 50.759 million as of December 31, 2023, resulting in a leverage ratio of approximately 37.31%[40] - The net current assets as of June 30, 2024, are approximately HKD 13.016 million, compared to HKD 15.467 million as of December 31, 2023[41] - The current ratio as of June 30, 2024, is approximately 1.20, down from 1.24 as of December 31, 2023[41] - The debt-to-equity ratio as of June 30, 2024, is approximately 127%, an increase from 123% as of December 31, 2023[42] Revenue Breakdown - The healthcare and medical business generated revenue of HKD 18,377,000 for the six months ended June 30, 2024, up from HKD 15,814,000 in the same period of 2023, reflecting a growth of 16.2%[10] - The beauty and wellness business reported revenue of HKD 7,544,000 for the six months ended June 30, 2024, down from HKD 9,295,000 in the same period of 2023, indicating a decline of 18.8%[10] - The healthcare and medical business segment's revenue increased by approximately 16.21% from HKD 15.81 million to HKD 18.38 million[27] - The group's total revenue for the period was approximately HKD 25,921,000, representing a slight increase of about 3.23% compared to HKD 25,109,000 in the previous year[30] Expenses - Direct costs and operating expenses decreased by approximately 7.85% to HKD 11,887,000 from HKD 12,899,000 in the previous year[31] - Selling expenses decreased by approximately 9.26% to HKD 6,682,000 from HKD 7,364,000 in the previous year[33] - Administrative expenses decreased by approximately 25.59% to HKD 11,763,000 from HKD 15,808,000 in the previous year[34] - Employee benefits expenses for the six months ended June 30, 2024, amounted to HKD 12,488,000, compared to HKD 11,861,000 for the same period in 2023, representing an increase of 5.3%[14] - Financing costs decreased by approximately 8.72% to HKD 1,026,000 from HKD 1,124,000 in the previous year[35] Corporate Governance - The company has confirmed compliance with the corporate governance code, except for the absence of an internal audit function due to operational scale[52] - The audit committee consists of three independent non-executive directors, with one member holding professional accounting qualifications[54] - The interim financial statements have been reviewed by the audit committee and are deemed to comply with applicable accounting standards and listing rules[54] - The company has adopted the standard code for securities trading by directors and confirmed adherence to it for the six months ending June 30, 2024[53] Future Outlook and Investments - The company continues to focus on providing healthcare and wellness services, with ongoing investments in new products and technologies[6] - The total capital expenditure budget for the relocation of Yiyang Hospital was approximately RMB 17.3 million (HKD 19.5 million)[38] - As of June 30, 2024, approximately RMB 16.4 million (HKD 18.5 million) has been utilized for the relocation of Yiyang Hospital, with the remaining budget expected to be fully utilized by Q1 2025[38] Dividend and Share Capital - The company does not recommend any dividend payment for the six months ended June 30, 2024, consistent with the previous period[18] - The company’s total issued and paid-up share capital remained unchanged at 659,894,693 shares as of June 30, 2024, consistent with the previous period[25] Compliance and Reporting - The interim results announcement has been published on the Hong Kong Stock Exchange and the company's website, with the full interim report to be sent to shareholders by September 30, 2024[55] - The company has not reported any revenue from a single customer exceeding 10% of total revenue for the periods ended June 30, 2024, and 2023[10]

Financial Performance - Green International Holdings Limited reported total revenue of approximately HKD 48.8 million for the fiscal year 2023, representing an increase of about 3.38% compared to HKD 47.2 million in 2022[15]. - The company's gross profit for the year was approximately HKD 28.8 million, an increase of about 10.25% from HKD 26.1 million in the previous year, resulting in a gross margin of 59.04%[17]. - Direct costs and operating expenses decreased to approximately HKD 20.0 million, down about 5.15% from HKD 21.1 million in 2022, primarily due to reduced product costs[16]. - Selling expenses increased to approximately HKD 13.3 million, reflecting a rise of about 4.93% compared to HKD 12.6 million in the previous year, consistent with revenue growth[18]. - Administrative expenses decreased to approximately HKD 22.0 million, a reduction of about 7.69% from HKD 23.8 million in 2022, attributed to cost control measures[19]. - The net loss from continuing operations for the year was approximately HKD 8,791,000, an improvement from HKD 13,814,000 in 2022[24]. - As of December 31, 2023, the total assets of the group were approximately HKD 136,201,000, down from HKD 168,637,000 in 2022, with total liabilities of approximately HKD 50,759,000[31]. - The group's cash and bank balances as of December 31, 2023, were approximately HKD 66,826,000, compared to HKD 81,742,000 in 2022[32]. - The debt-to-equity ratio as of December 31, 2023, was approximately 123%, down from 139% in 2022[33]. - The current ratio as of December 31, 2023, was approximately 1.24, compared to 1.72 in 2022[31]. - The group's financing costs for the year were approximately HKD 2,278,000, down from HKD 3,330,000 in 2022[23]. Business Operations - The healthcare and medical business faced challenges due to market competition and increased operating expenses related to health measures during the pandemic[9]. - The beauty and fitness business continued to perform poorly, impacted by changes in consumer behavior post-pandemic and ongoing industry challenges[12]. - The relocation of the subsidiary, Zizhong Operations Company, was completed in 2023, providing a larger and more equipped operational facility, enhancing operational capacity[10]. - The company plans to closely monitor business and market developments for potential expansion opportunities, although major acquisitions or expansion plans are currently not intended due to market stability concerns[14]. - The main business activities include providing healthcare and medical services, as well as beauty and fitness products and related services[61]. Impairment and Assets - The company has not recognized any impairment losses for properties, plants, and equipment as of December 31, 2023, based on independent valuation assessments[21]. - The impairment losses for trademarks, professional skills, properties, and equipment in the beauty and fitness business amounted to approximately HKD 4,369,000, HKD 1,387,000, and HKD 2,340,000 respectively, compared to HKD 1,295,000, HKD 651,000, and HKD 1,039,000 in 2022[22]. Shareholder Information - The board of directors does not recommend the payment of any dividends for the year ended December 31, 2023, consistent with the previous year[49]. - As of December 31, 2023, the major shareholders include Ms. Zhou Cuiqiong with 370,071,730 shares, representing approximately 56.08% of the total issued shares[82]. - The percentage of shares held by Mr. Liu Dong is approximately 3.81%, with a total of 25,146,000 shares[81]. - The company has not established any arrangements for directors to benefit from purchasing shares or debt securities of the company or any other corporate body during the year[76]. - The company has not engaged in any significant transactions, arrangements, or contracts where directors have a substantial interest during the year[77]. Corporate Governance - The board of directors presented the annual report and audited consolidated financial statements for the year ended December 31, 2023[60]. - The independent non-executive directors have provided annual confirmations regarding their independence[80]. - The company has complied with the public float requirements under the listing rules throughout the year[103]. - The audit committee consists of three independent non-executive directors, ensuring compliance with applicable accounting standards and listing rules[108]. - The company has established an internal audit function with the assistance of an external consultant to enhance risk management and internal control systems[113]. - The board of directors is responsible for the overall strategy and performance monitoring, with a focus on sustainable success and ethical governance[114]. - The company has adopted a shareholder communication policy to ensure timely and equal access to information for shareholders and potential investors[167]. - The board of directors will review the implementation and effectiveness of the shareholder communication policy annually[170]. Environmental and Social Responsibility - The company emphasizes its commitment to environmental protection and sustainable development, implementing measures such as promoting the use of eco-friendly paper and reducing energy consumption[106]. - The company aims to reduce greenhouse gas emissions by 5% by 2026, using 2021 as the baseline year[195]. - The company promotes waste reduction initiatives, including green procurement and waste classification in all office locations[198]. - The company is focused on improving product safety and quality, customer satisfaction, and employee health and safety as key ESG priorities[188]. - The company is actively responding to national carbon peak and carbon neutrality goals, promoting green operations[195]. Employee and Management Information - The group employed 179 staff members in Hong Kong and China as of December 31, 2023, with compensation evaluated based on individual and group performance[50]. - The employee gender ratio as of December 31, 2023, was 15:85 (male: female), highlighting the company's commitment to diversity[153]. - The company has implemented a whistleblowing policy to provide guidance and reporting channels for employees and third parties[157]. - The company has a zero-tolerance policy towards fraud and corruption, with regular reviews of related policies to ensure effectiveness[158]. - The company provides training and updates to directors regarding compliance with listing rules and corporate governance practices[131]. Audit and Compliance - The independent auditor, Guo Wei Accounting Firm, is responsible for the audit report included in the annual report[135]. - The audit committee has reviewed the financial statements for the year, confirming they are prepared in accordance with applicable accounting standards[109]. - The audit committee's responsibilities include reviewing financial statements and monitoring the independence of external auditors[139]. - The company has established a risk management and internal control system, which was deemed effective with no significant deficiencies identified during the review[152].

Financial Performance - For the year ended December 31, 2023, the company reported total revenue of HKD 48,831,000, an increase of 3.4% from HKD 47,236,000 in 2022[4] - Gross profit for the same period was HKD 28,828,000, representing a 10.3% increase compared to HKD 26,147,000 in 2022[4] - The company recorded a net loss of HKD 8,791,000 for 2023, an improvement from a net loss of HKD 13,814,000 in 2022, indicating a reduction in losses by approximately 36.6%[5] - The total net loss before tax for the year was HKD 9,360,000, an improvement from a loss of HKD 13,857,000 in the previous year[34] - The group reported a pre-tax loss of HKD 1,465,000 in 2023, compared to a gain of HKD 1,176,000 in 2022[48] - The company reported a basic and diluted loss per share of HKD (1.61) for 2023, compared to HKD (2.00) in 2022, indicating an improvement in performance[52] Assets and Liabilities - The total assets decreased to HKD 136,201,000 in 2023 from HKD 168,637,000 in 2022, reflecting a decline of about 19.2%[7] - The company's total liabilities decreased to HKD 92,589,000 in 2023 from HKD 114,102,000 in 2022, a reduction of approximately 18.8%[8] - The company’s cash and cash equivalents decreased to HKD 66,826,000 in 2023 from HKD 81,742,000 in 2022, a decline of about 18.2%[7] - The total non-current assets in China were HKD 55,081,000 as of December 31, 2023, compared to HKD 68,704,000 in 2022[40][42] - The group's debt as of December 31, 2023, was approximately HKD 50.8 million, a decrease from HKD 72.5 million as of December 31, 2022, resulting in a leverage ratio of approximately 37.27%[86] Revenue Segmentation - The healthcare and medical segment generated approximately HKD 6,897,000 in revenue, while the beauty and fitness segment reported a loss of HKD 7,510,000 for the year ended December 31, 2023[34] - The healthcare and medical business generated revenue of HKD 31,212,000, while the beauty and fitness business contributed HKD 17,619,000 in 2023[43] - The group recognized other income of approximately HKD 5,066,000 in the healthcare and medical segment for the year ended December 31, 2023, compared to zero in 2022[35] Expenses and Cost Management - The company’s administrative expenses decreased to HKD 21,989,000 in 2023 from HKD 23,821,000 in 2022, a reduction of about 7.7%[4] - The group's direct costs and operating expenses for the year were approximately HKD 20,003,000, a decrease of about 5.15% compared to HKD 21,089,000 in 2022, primarily due to reduced merchandise costs[69] - Selling expenses for the year were approximately HKD 13,270,000, an increase of about 4.93% from HKD 12,647,000 in 2022, consistent with revenue growth[72] Accounting Policies and Standards - The group has applied new and revised Hong Kong Financial Reporting Standards for the first time starting from January 1, 2023, including HKFRS 17 on insurance contracts[16] - The application of HKAS 12 revisions has narrowed the exemption scope for deferred tax liabilities and assets, impacting the recognition of temporary differences[20] - The group anticipates that the application of the revised standards will not have a significant impact on its financial position or performance[21] - The revised HKAS 1 and HKFRS Practice Statement 2 clarify the definition of significant accounting policy information, which may influence financial reporting[17] - The group has adopted a new accounting policy for the disclosure of significant accounting policy information, which may affect how financial reports are interpreted[18] Operational Developments - The company continues to focus on expanding its healthcare and wellness services, aiming to enhance its market presence and product offerings in the coming years[11] - The healthcare and medical business faced increased operating expenses due to market competition and health measures implemented to mitigate pandemic threats[64] - Future expansion plans for the healthcare business have been slowed down due to the impact of healthcare reforms initiated in 2021[67] - The company has no intention to commit to any significant acquisitions or expansion plans until market responses to reforms stabilize[67] Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the consolidated financial statements for the year, confirming compliance with applicable accounting standards and listing rules[112] - The financial figures in the preliminary performance announcement have been verified by the group's auditor, ensuring consistency with the audited consolidated financial statements[113] - The annual performance announcement will be published on the Hong Kong Stock Exchange and the company's website, with the annual report to be sent to shareholders by April 30, 2024[114] Employee and Community Engagement - The group employed 179 employees in Hong Kong and China as of December 31, 2023[102] - The company expresses gratitude to its directors, employees, shareholders, customers, suppliers, banks, and business partners for their ongoing support[116]

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 25,109,000, a slight increase of 0.3% compared to HKD 25,037,000 in the same period of 2022[7] - Gross profit for the same period was HKD 12,210,000, down 0.2% from HKD 12,235,000 year-on-year[7] - The net other income and gains increased significantly to HKD 7,297,000 from HKD 1,255,000, representing a growth of 482%[7] - Loss before tax decreased to HKD 4,789,000, a 60% improvement compared to HKD 12,046,000 in the previous year[7] - The company reported a total comprehensive loss of HKD 5,077,000 for the period, compared to HKD 12,352,000 in the previous year, marking a 59% improvement[8] - The company reported a loss of HKD (4,566,000) for the six months ended June 30, 2023, which is an improvement from a loss of HKD (9,844,000) for the same period in 2022[14] - The total comprehensive income for the six months ended June 30, 2023, was HKD (4,929,000), compared to HKD (10,292,000) for the same period in 2022, showing a reduction in losses[14] - The group recorded a net loss of approximately HKD 4,704,000, a reduction of about 60.72% from HKD 11,977,000 in 2022[88] Assets and Liabilities - The total assets as of June 30, 2023, were HKD 141,590,000, down from HKD 168,637,000 at the end of 2022, reflecting a decrease of 16%[12] - Total liabilities decreased to HKD 92,132,000 from HKD 114,102,000, indicating a reduction of 19%[12] - The company's equity attributable to shareholders was HKD 47,258,000, down from HKD 52,187,000, a decline of 9.1%[12] - As of June 30, 2023, cash and bank balances decreased to HKD 72,265,000 from HKD 81,742,000 as of December 31, 2022, representing a decline of approximately 11.5%[58] - Trade payables decreased to HKD 3,106,000 as of June 30, 2023, down from HKD 4,599,000 as of December 31, 2022, a reduction of about 32.4%[61] - The aging analysis of trade payables shows that amounts overdue by more than 180 days increased to HKD 611,000 from HKD 165,000, indicating a significant rise in long-term liabilities[62] - Total liabilities for accrued expenses and other payables amounted to HKD 39,517,000 as of June 30, 2023, slightly down from HKD 40,589,000 as of December 31, 2022[65] Cash Flow - The net cash used in operating activities for the six months ended June 30, 2023, was HKD (4,415,000), compared to HKD 1,180,000 for the same period in 2022, indicating a significant decline in cash flow[16] - The net cash used in financing activities for the six months ended June 30, 2023, was HKD (5,360,000), an improvement from HKD (8,185,000) in the previous year[16] - The cash and cash equivalents decreased by HKD 9,235,000 during the six months ended June 30, 2023, compared to a decrease of HKD 7,076,000 in the same period of 2022[16] Operational Focus and Strategy - The company plans to focus on enhancing operational efficiency and exploring new market opportunities to drive future growth[6] - The company expects to continue focusing on market expansion and new product development to drive future growth[34] - The healthcare and medical business continues to face challenges due to market competition and increased operational costs related to COVID-19 measures[74] - The beauty and fitness business remains sluggish, impacted by changes in consumer behavior due to the COVID-19 pandemic, leading to a significant decline in service demand[77] - The company is closely monitoring market developments following the lifting of COVID-19 restrictions in December 2022, with no immediate plans for major acquisitions or expansions until market stability is achieved[78] Shareholder Information - As of June 30, 2023, major shareholder Zhou Cuiqiong holds 370,071,730 shares, representing 56.08% of the issued shares[117] - Liu Dong holds 25,146,000 shares, accounting for 3.81% of the issued shares[115] - The company did not declare any dividends for the six months ended June 30, 2023, consistent with the previous year[53] - No dividends were recommended for the current period, consistent with the previous year[110] Compliance and Governance - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2023, which did not result in significant changes to the financial statements[22] - The company has established an internal audit function with the assistance of an external consultant, which will regularly report to the audit committee on the adequacy and effectiveness of the risk management and internal control systems[124] - The audit committee consists of three independent non-executive directors, ensuring compliance with applicable accounting standards and listing rules[129] - The company held its annual general meeting on June 30, 2023, where amendments to the company's articles of association were approved[126] Employee Information - The company employed 177 staff members in Hong Kong and China as of June 30, 2023, with compensation evaluated based on individual and group performance[111]