Group 1: Industry Overview - The Chinese innovative drug industry is accelerating towards high-quality development driven by policy incentives and capital influx [1][3] - The National Medical Products Administration has introduced a "30-day fast approval channel" for innovative drug clinical trials, enhancing the efficiency of drug development [1] - The CSI Innovative Drug Industry Index has shown a cumulative return of approximately 5% over the past year, while the Hang Seng Hong Kong Stock Connect Innovative Drug Index has achieved a remarkable 34% return [3] Group 2: Company Highlights - Dongyang Sunshine Pharmaceutical Co., Ltd. (06877.HK) is set to list 112.7 million H-shares on the Hong Kong Stock Exchange, with trading expected to commence on August 7 [3][4] - The company has a strong focus on innovation, with R&D investment projected to exceed 20% of revenue in 2024 [4] - Dongyang Sunshine has led the domestic pharmaceutical industry in the number of patents published and authorized from 2014 to 2023, marking a shift from following to leading in technology [4] Group 3: Technological Advancements - Dongyang Sunshine is leveraging AI technology to enhance R&D efficiency, including AI-assisted patent literature summarization and the use of GAT algorithms to improve clinical trial success rates [4] - The first candidate drug developed through the AI-driven platform, HEC169584, has entered clinical trials, with plans for further AI applications in drug design [4] Group 4: Market Sentiment - The competitive landscape for domestic innovative drugs is improving, with expectations for a significant revaluation of the sector [4] - Upcoming negotiations for the 2025 medical insurance directory are anticipated to catalyze positive policy developments for the industry [4]

Core Viewpoint - Dongyangguang Pharmaceutical Co., Ltd. is set to return to the capital market with a new positioning as an innovative pharmaceutical company through a "introduction listing" on the Hong Kong Stock Exchange, aiming to list 112.7 million H shares by August 7, 2025, following its privatization [1] Group 1: Company Transformation and R&D Focus - The company has successfully transformed by focusing on innovative drug research and development, showcasing resilience and growth [1] - Dongyangguang has established the only national key laboratory for the research and development of new anti-infection drugs in Guangdong Province, equipped with over 50,000 square meters of laboratory space and more than 400 high-performance liquid chromatography instruments [1] - The company has maintained a high investment in R&D, with over 20% of its revenue allocated to R&D in 2024, leading to breakthroughs in core technologies and breaking foreign technology monopolies [2] Group 2: Innovation and AI Integration - Dongyangguang ranks first among domestic pharmaceutical companies in the number of patents published and granted in China from 2014 to 2023 [2] - The company is actively integrating AI technology to enhance R&D efficiency, with the first candidate drug HEC169584 developed through an AI-driven platform currently in clinical trials [2] Group 3: Organizational Culture and Competitive Advantage - The company emphasizes expert-led decision-making and team practices to build core competencies, allowing experts to focus on technical areas without administrative duties [3] - The organizational culture, established by founder Zhang Zhongneng, promotes resilience and confidence, which has helped attract and motivate talent [3] - Dongyangguang has developed a mature system covering three major fields and the entire R&D lifecycle, achieving a leap towards "systematic innovation" [3]

Core Viewpoint - The impact of the U.S. "reciprocal tariffs" on Chinese pharmaceutical companies is limited, with many companies reporting normal operations and minimal effects on their business [1][2][4][7][12]. Group 1: Company Responses - Heng Rui Pharmaceutical reported that overseas sales account for only 2.56% of its revenue, indicating that U.S. tariffs have a minimal impact on its business [1]. - Han Yu Pharmaceutical stated that it has a diversified market presence across North America, Asia, Europe, and South America, which mitigates risks from single market policy changes [2]. - Bai Yang Pharmaceutical noted that its supply chain is globally diversified, and the impact of tariffs is minimal [3]. - WuXi AppTec acknowledged that tariffs will have some impact but emphasized their optimized supply chain and management practices to minimize effects [4]. - Kangtai Biological confirmed that it has no products exported to the U.S. and is focusing on markets along the Belt and Road [5]. Group 2: Industry Trends - The medical device industry in China is rapidly developing, with companies like Mindray Medical actively seeking alternatives for U.S. imported raw materials [5]. - Companies are increasingly focusing on domestic production and local supply chains to counteract potential tariff impacts [6][8]. - The vaccine industry in China is evolving, with companies like CanSino Biologics transitioning from followers to leaders in vaccine technology [8][9]. - The overall sentiment among Chinese pharmaceutical companies is that the current tariff situation presents an opportunity for domestic substitution and innovation [10][12].

Group 1 - CLSA PREMIUM (06877) announced the resignation of several directors effective April 10, 2025, including Mr. Xu Jianqiang as non-executive director and chairman of the corporate governance committee, Mr. Wu Jianfeng as independent non-executive director and member of the remuneration and audit committees, and Mr. Ma Anyang due to potential conflicts affecting his independence [1] - Effective April 11, 2025, new appointments include Mr. Ji Guangfei as executive director, chairman of the board, and CEO; Ms. Li Jiang as executive director and vice-chairman; Mr. Zhang Huanping as executive director; Mr. Zhou Zuyu as independent non-executive director and chief independent non-executive director; and Mr. Lv Aiping as independent non-executive director [1] - Following the resignations of Mr. Xu Jianqiang and Mr. Yuan Feng's reassignment, they will no longer serve as authorized representatives under the listing rules and relevant Hong Kong laws, with Mr. Ji Guangfei and company secretary Mr. Shi Yonghua appointed as authorized representatives and legal process agents effective April 11, 2025 [2]

Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching $500 million for the fiscal year[7]. - The company provided a forward guidance of 10% revenue growth for the next fiscal year, projecting revenues of $550 million[7]. - The consolidated net profit increased by 15% compared to the previous year, driven by strategic investments in sales channels and market outreach[41]. - The Group recorded a consolidated net profit of approximately HK$11.3 million for the year ended 31 December 2024, an increase from approximately HK$9.8 million for the year ended 31 December 2023[80]. - Profit before tax for the year ended December 31, 2024, increased to HK$12,589,000, up from HK$11,587,000 in 2023, marking a growth of 8.7%[134]. - Profit for the year reached HK$11,338,000, compared to HK$9,842,000 in 2023, representing a year-on-year increase of 15.1%[134]. - The Group's total income for the year ended 31 December 2024 was approximately HK$102.8 million, a decrease from approximately HK$199.7 million for the year ended 31 December 2023[65]. - Revenue from the healthcare business was approximately HK$86.5 million for the year ended 31 December 2024, down from HK$191.2 million for the year ended 31 December 2023, indicating a significant decline[66]. Operational Efficiency - The company reported a net profit margin of 12%, reflecting improved operational efficiency[7]. - The total cash flow from operations increased by 18%, amounting to $80 million for the quarter[7]. - Operational efficiencies improved by streamlining supply chain processes, reducing operational redundancy while maintaining quality[43]. - The cost of sales for the continuing operations was HK$52.5 million for the year ended 31 December 2024, down from HK$151.1 million for the year ended 31 December 2023, reflecting the drop in revenue[69]. - Total expenses, excluding the cost of sales, increased by approximately 11% to HK$37.8 million for the year ended 31 December 2024, compared to HK$34.0 million for the year ended 31 December 2023[70]. Market Expansion and Strategy - Market expansion efforts have led to a 25% increase in market share in the Asia-Pacific region[7]. - The strategic plan includes expanding into emerging markets, identified key regions for growth, and discussions with potential partners are underway[47]. - The Group plans to launch original design manufacturing (ODM) products in the PRC and Hong Kong to expand its product range[112]. - The Group aims to leverage Hong Kong's position as a global supply chain center and its relationship with the PRC to enhance its healthcare business[111]. - The Group is negotiating with local famous chain stores to set up counters for selling its products[117]. Product Development and Innovation - New product launches contributed to 30% of total revenue, with the latest product generating $150 million in sales[7]. - New products launched have been well-received, designed based on direct customer feedback, enhancing the company's competitive edge[42]. - The Group's B2C model expansion on popular short-form video platforms in China generated approximately HK$40 million in revenue for the year[59]. - The Group's strategy includes utilizing artificial intelligence technology to identify suitable products for target customers globally[111]. Governance and Management - The Group's management team includes individuals with significant experience in their respective fields, enhancing operational capabilities and strategic direction[34]. - The board of directors includes members with diverse backgrounds in finance, technology, and healthcare, contributing to comprehensive governance[34]. - The Group aims to enhance its corporate governance and operational efficiency through the expertise of its directors and senior management[34]. - Mr. Xu Jianqiang has been appointed as a non-executive director since May 21, 2018, and currently serves as the chairman of the corporate governance committee[24]. - The Group employed a total of 13 staff as of December 31, 2024, including employees, consultants, and directors[96]. Sustainability and Corporate Responsibility - Commitment to sustainability includes reducing carbon footprint, enhancing packaging materials, and supporting community initiatives[48]. - The company has implemented internal recycling programs and energy-saving practices to minimize its environmental impact[154]. - The company emphasizes the importance of transparency and communication with stakeholders to foster relationships[49]. - The focus on delivering sustainable results is a priority for the company as it moves forward in the healthcare industry[52]. Risk Management - The Group has implemented a robust risk management system to address financial risks, including credit, market, and liquidity risks[138]. - The Company continues to invest in IT systems to enhance cybersecurity and mitigate risks associated with potential disruptions[145]. - The Group has diversified its supply chain to reduce dependence on single sources, aiming to minimize the impact of disruptions[146]. - The Company is actively monitoring macroeconomic changes to adapt its business strategies accordingly[139]. - Legal risks related to ongoing litigation against Banclogix System Co., Limited are being managed as part of the Company's compliance strategy[147]. Dividend Policy and Shareholder Relations - The Group does not recommend the payment of a final dividend for the year ended December 31, 2024[125]. - The company has a dividend policy that considers operating results, cash flow, and financial condition when determining the payout ratio[186]. - The payment and amount of dividends will depend on the group's operational results, cash flows, financial position, and other relevant factors, with no predetermined distribution ratio[192]. - The company’s dividend payments are subject to statutory and regulatory restrictions[192]. - The company recognizes employees as valuable assets and aims to provide competitive remuneration and career advancement opportunities[161].

Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 102,821,000, a decrease of 48.6% from HKD 199,683,000 in 2023[3] - Profit before tax from continuing operations was HKD 12,589,000, a decrease of 13.6% compared to HKD 14,575,000 in 2023[5] - The annual profit from continuing operations was HKD 11,338,000, down 11.6% from HKD 12,830,000 in the prior year[5] - Total comprehensive income for the year was HKD 4,442,000, a decline of 50.9% from HKD 9,065,000 in 2023[5] - The total revenue for the group's continuing operations for the year ended December 31, 2024, was approximately HKD 102,800,000, compared to HKD 199,700,000 for the year ended December 31, 2023, representing a decline of about 48.6%[43] - The healthcare business revenue for the year ended December 31, 2024, was approximately HKD 86,500,000, down from HKD 191,200,000 for the year ended December 31, 2023, indicating a decrease of approximately 54.7%[44] - The group recorded a net profit of approximately HKD 11,300,000 for the year ended December 31, 2024, compared to HKD 9,800,000 for the year ended December 31, 2023, reflecting an increase of about 15.3%[52] Cost and Expenses - The cost of goods sold for the healthcare business was HKD 52,454,000, down 65.3% from HKD 151,077,000 in the previous year[3] - The total cost of goods sold recognized for the year 2024 is approximately HKD 52,454,000, significantly lower than HKD 151,077,000 in 2023, indicating a reduction of about 65.3%[31] - The sales cost for the group's continuing operations for the year ended December 31, 2024, was HKD 52,500,000, down from HKD 151,100,000 for the year ended December 31, 2023, indicating a decrease of about 65.3%[47] - The total expenses (excluding sales costs) for the group for the year ended December 31, 2024, were approximately HKD 37,800,000, an increase of about 11% from HKD 34,000,000 for the year ended December 31, 2023[48] Assets and Liabilities - Current assets increased to HKD 279,305,000 from HKD 251,387,000, representing an increase of 11.1%[6] - Total equity rose to HKD 244,307,000, up from HKD 239,865,000, reflecting a growth of 1.8%[6] - Cash and bank balances decreased to HKD 206,336,000 from HKD 223,574,000, a decline of 7.7%[6] - Trade receivables increased to HKD 37,345,000 in 2024 from HKD 12,979,000 in 2023, marking an increase of approximately 187.5%[32] - The inventory of finished goods as of December 31, 2024, is HKD 34,546,000, compared to HKD 11,916,000 in 2023, reflecting an increase of approximately 189.5%[31] - Trade payables increased to HKD 28,606,000 in 2024 from HKD 6,536,000 in 2023, representing an increase of approximately 338.5%[35] Income and Earnings - The company reported a basic and diluted earnings per share of HKD 0.56, compared to HKD 0.48 in the previous year, indicating an increase of 16.7%[5] - Basic and diluted earnings per share from continuing operations for 2024 is HKD 0.56, a decrease from HKD 0.63 in 2023, representing a decline of approximately 11.1%[29] - The income tax expense for the year 2024 is HKD 1,251,000, compared to HKD 1,745,000 in 2023, reflecting a decrease of approximately 28.3%[26] Business Operations - The company has terminated its margin trading business in New Zealand, Australia, and Hong Kong due to uncertainties, with a reported loss of HKD 2,988 thousand for the discontinued operations in 2023[23] - The company has established an online store for healthcare products through a well-known international e-commerce platform, indicating a strategic expansion into the healthcare market[12] - The group plans to expand its B2C model through popular short video platforms in China, which generated approximately HKD 40,000,000 in revenue for the year[41] - The group anticipates further opportunities in the healthcare industry driven by technological advancements and changing consumer expectations[41] - The group intends to launch its Original Design Manufacturing (ODM) products in China and Hong Kong, utilizing established e-commerce cross-border channels for distribution[67] - The group has obtained a wholesale license from the Hong Kong Department of Health and plans to collaborate with Japanese pharmaceutical companies for product distribution[69] Corporate Governance and Compliance - The company has not adopted any new or revised accounting standards that are expected to have a significant impact on the current or future periods[9] - The company expects that the application of the new Hong Kong Financial Reporting Standard 18 will not impact its financial position and performance in the foreseeable future, but will affect the presentation of the comprehensive income statement[11] - The group has complied with the corporate governance code throughout the year ending December 31, 2024[73] - The audit committee reviewed the audited consolidated financial statements for the year ending December 31, 2024, and submitted its opinions to the board[65] Shareholder Matters - The company has no dividends recommended for the year ending December 31, 2024, consistent with 2023[27] - The board does not recommend a final dividend for the year ending December 31, 2024, consistent with the previous year[71] - The company plans to change its name from "CLSA Premium Limited" to "Top Eminent Healthcare Group Limited" pending shareholder approval[80] - The board of directors has proposed amendments to the company's articles of association to reflect the name change, which will require special resolution approval from shareholders[85] - The company will hold a meeting for shareholders to consider and approve the proposed name change and amendments to the articles of association[87] Employee Matters - The group employed a total of 13 employees as of December 31, 2024, including employees, consultants, and directors[60] - Directors Li Jiong and Xu Jianqiang have agreed to waive their annual director's fees of HKD 120,000 each, effective from April 1, 2023[77] - Mr. Yuan Feng has notified the company of his waiver of annual remuneration of HKD 789,600, effective from September 30, 2024[77] Miscellaneous - The group has no significant investments, acquisitions, or disposals of subsidiaries for the year ending December 31, 2024[59] - The group has not purchased, sold, or redeemed any of its listed securities during the year ending December 31, 2024[74] - The annual report for the year ending December 31, 2024, will be published on the company's website and the Hong Kong Stock Exchange website[79] - Independent non-executive director Mr. Wu Jianfeng's position as Chief Engineer at Accertify will be independent following its spin-off on May 1, 2024[77] - The company will not arrange for the exchange of existing shares for new shares bearing the new company name after the name change[84] - The name change will not affect shareholders' rights or the trading of the company's shares on the stock exchange[84] - The board believes the new name will provide a better corporate image and potential business opportunities for the company[83]

[Corporate Information](index=2&type=section&id=Corporate%20Information) This section provides essential corporate details, including board members, key contact information, and auditor details [Corporate Information](index=2&type=section&id=Corporate%20Information) This chapter provides fundamental corporate information, including board and committee members, registered office, principal business locations, and key contact details Key Personnel and Institutions | Position | Name/Institution | | :--- | :--- | | **Chairman (Non-executive Director)** | Mr LI Jiong | | **Vice CEO (Executive Director)** | Mr YUAN Feng | | **Auditor** | BDO Limited | | **Principal Bankers** | China CITIC Bank International Limited, Bank of Communications (Hong Kong) Limited | - The company made changes to its independent non-executive directors and relevant committee members in March 2024, with Mr MA An Yang succeeding Mr MA Xu Fei in related roles[4](index=4&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the company's financial performance, business operations, and future strategic direction [Financial Performance](index=5&type=section&id=Financial%20Performance) Despite a 61% decline in total revenue due to the termination of margin trading, the Group achieved profit growth by focusing on high-margin healthcare business, maintaining a robust financial position with ample cash and zero debt Financial Performance Summary (Continuing Operations) | Metric (Continuing Operations) | 2024 Interim (HKD Thousands) | 2023 Interim (HKD Thousands) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | 55,501 | 141,895 | -61% | | **Profit Before Tax** | 7,436 | 8,236 | -10% | | **Profit for the Period Attributable to Owners of the Company** | 6,260 | 6,932 | -10% | | **Basic Earnings Per Share (HK Cents)** | 0.31 | 0.34 | -9% | *Note: The table above presents data for continuing operations. Including discontinued operations, total revenue for 2024 interim was HKD 55,501 thousand, a 61% YoY decrease; total profit attributable to owners of the company was HKD 6,260 thousand, a 13% YoY increase* - The decline in total revenue is primarily due to the termination of margin trading business in 2023, resulting in zero revenue from this segment, with healthcare business now being the sole revenue source, albeit with a year-on-year decrease[9](index=9&type=chunk) - The increase in net profit is mainly attributed to the Group's strategic shift towards higher-margin B2C healthcare business, effectively enhancing the gross profit of the healthcare segment[19](index=19&type=chunk) - As of June 30, 2024, the Group held **HKD 224 million** in cash and bank balances, indicating a healthy financial position with **zero debt ratio**[20](index=20&type=chunk)[21](index=21&type=chunk) [Business Review](index=10&type=section&id=Business%20Review) The Group successfully transitioned its core business entirely to healthcare, launched its first ODM products in February 2024, and plans further market expansion, while also resuming share trading in July 2024, despite facing a potential change in controlling shareholder - Healthcare business has become the Group's core profit and growth driver, with the successful launch of **11 ODM products** incorporating traditional Chinese medicine formulas in February 2024, marking a new business phase[34](index=34&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) - The Group plans to expand its healthcare business, especially ODM, by increasing resource allocation, broadening supplier and customer networks, and engaging in targeted marketing with KOLs[40](index=40&type=chunk)[43](index=43&type=chunk) - The company's shares resumed trading on the Stock Exchange on **July 19, 2024**, after being suspended for failing to meet Listing Rule 13.24[45](index=45&type=chunk) - A significant post-reporting period event involves the controlling shareholder, CITIC Securities International Company Limited, proposing to transfer approximately **28% to 40%** of the company's shares through public solicitation, potentially leading to a change in control[45](index=45&type=chunk)[154](index=154&type=chunk) [Corporate Governance and Other Information](index=14&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details the company's corporate governance practices, key shareholder information, and other relevant disclosures [Corporate Governance and Shareholder Information](index=14&type=section&id=Corporate%20Governance%20and%20Shareholder%20Information) This chapter outlines the company's corporate governance practices, confirming compliance with the code, discloses major shareholder holdings with CITIC Securities International as controlling shareholder, and notes no share repurchases or interim dividends declared during the period - The company complied with the Corporate Governance Code throughout the 2024 interim period, with all directors confirming adherence to the Model Code for Securities Transactions[51](index=51&type=chunk)[52](index=52&type=chunk) Major Shareholder Information | Major Shareholder | Number of Shares Held | Shareholding Percentage | | :--- | :--- | :--- | | **CITIC Securities International Company Limited** | 1,200,310,001 | 59.03% | | **KVB Holdings Limited** | 300,000,000 | 14.75% | | **Calypso International Investment Co., Limited** | 106,355,000 | 5.23% | - The Board resolved not to declare any dividend for the 2024 interim period[62](index=62&type=chunk) - The company's Audit Committee reviewed the interim financial statements and had no disagreement with the accounting treatments adopted[68](index=68&type=chunk) [Financial Statements](index=19&type=section&id=Financial%20Statements) This section presents the company's condensed consolidated interim financial statements, encompassing comprehensive income, financial position, equity changes, and cash flows [Condensed Consolidated Interim Statement of Comprehensive Income](index=19&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2024, the Group's continuing operations generated **HKD 55.501 million** in revenue and **HKD 6.26 million** in profit for the period, with no income or loss from the discontinued margin trading business Condensed Consolidated Interim Statement of Comprehensive Income | Item (HKD Thousands) | 2024 Interim | 2023 Interim (Restated) | | :--- | :--- | :--- | | **Total Revenue from Continuing Operations** | 55,501 | 141,895 | | Sales of Healthcare Products | 50,687 | 138,108 | | Other Income | 4,814 | 3,787 | | **Profit for the Period from Continuing Operations** | 6,260 | 6,932 | | **Loss for the Period from Discontinued Operations** | – | (1,378) | | **Total Profit for the Period** | 6,260 | 5,554 | | **Total Comprehensive Income for the Period** | 5,741 | 5,074 | [Condensed Consolidated Interim Statement of Financial Position](index=21&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets reached **HKD 262.097 million**, a **4% increase** from year-end 2023, with total equity at **HKD 245.606 million**, a **2% increase**, demonstrating a robust financial position dominated by liquid assets, primarily cash and bank balances Condensed Consolidated Interim Statement of Financial Position | Item (HKD Thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | 262,097 | 251,775 | | Non-current Assets | 194 | 388 | | Current Assets | 261,903 | 251,387 | | **Total Liabilities** | 16,491 | 11,910 | | **Total Equity** | 245,606 | 239,865 | [Condensed Consolidated Interim Statement of Changes in Equity](index=23&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2024, the Group's total equity increased to **HKD 245.606 million**, primarily driven by a **HKD 6.26 million** profit for the period, partially offset by a **HKD 0.519 million** currency translation difference Condensed Consolidated Interim Statement of Changes in Equity | Item (HKD Thousands) | Amount | | :--- | :--- | | **Balance as at January 1, 2024** | 239,865 | | Profit for the Period | 6,260 | | Other Comprehensive Expense (Currency Translation Difference) | (519) | | **Balance as at June 30, 2024** | 245,606 | [Condensed Consolidated Interim Statement of Cash Flows](index=25&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Cash%20Flows) In 2024 interim, the Group reported a **HKD 2.879 million** net cash outflow from operating activities and a **HKD 4.814 million** net cash inflow from investing activities, primarily interest income, with period-end cash and cash equivalents at **HKD 224 million**, indicating stable cash flow Condensed Consolidated Interim Statement of Cash Flows | Item (HKD Thousands) | 2024 Interim | 2023 Interim (Restated) | | :--- | :--- | :--- | | **Net Cash Used in Operating Activities** | (2,879) | (2,652) | | **Net Cash From Investing Activities** | 4,814 | 4,683 | | **Net Cash Used in Financing Activities** | – | (1) | | **Net Increase in Cash and Cash Equivalents** | 1,935 | 2,030 | | **Cash and Cash Equivalents at End of Period** | 223,850 | 213,330 | [Notes to the Interim Financial Information](index=27&type=section&id=Notes%20to%20the%20Interim%20Financial%20Information) This section provides detailed notes to the interim financial information, covering segment reporting, discontinued operations, trade receivables, and contingent liabilities [Note 4 Segment Reporting](index=30&type=section&id=Note%204%20Segment%20Reporting) The Group's business is restructured into continuing healthcare and discontinued margin trading segments, with all 2024 interim revenue and profit derived from Hong Kong-based healthcare operations, showing some customer concentration from the top three clients Segment Performance for 2024 Interim | 2024 Interim (HKD Thousands) | Healthcare Business (Continuing) | Unallocated | Margin Trading (Discontinued) | Total | | :--- | :--- | :--- | :--- | :--- | | **Segment Revenue** | 50,687 | – | – | 50,687 | | **Segment Profit/(Loss)** | 8,401 | (965) | – | 7,436 | - The Group's primary revenue is derived from operations in Hong Kong, accounting for **100%** of continuing operations revenue[101](index=101&type=chunk)[103](index=103&type=chunk) [Note 8 Discontinued Operations](index=37&type=section&id=Note%208%20Discontinued%20Operations) This note details the financial impact of the discontinued margin trading business, which incurred a **HKD 1.378 million** pre-tax loss in 2023 H1 but had no operations or related profit/loss in 2024 H1 Financial Impact of Discontinued Operations | Item (HKD Thousands) | 2024 Interim | 2023 Interim (Restated) | | :--- | :--- | :--- | | **Total Revenue** | – | 1,113 | | **Total Expenses** | – | (2,490) | | **Loss Before Tax** | – | (1,378) | [Note 14 Trade Receivables](index=41&type=section&id=Note%2014%20Trade%20Receivables) As of June 30, 2024, total trade receivables significantly increased to **HKD 26.35 million** from **HKD 12.98 million** at year-end 2023, reflecting business expansion, with most balances current or less than three months overdue, requiring no significant impairment provision Aging Analysis of Trade Receivables | Aging Analysis | June 30, 2024 (HKD Thousands) | Percentage | | :--- | :--- | :--- | | Current | 15,318 | 58.1% | | Less than three months overdue | 9,584 | 36.4% | | Three to six months overdue | 1,447 | 5.5% | | **Total** | **26,349** | **100.0%** | [Note 22 Litigations and Contingent Liabilities](index=48&type=section&id=Note%2022%20Litigations%20and%20Contingent%20Liabilities) This note discloses ongoing litigation with former IT service provider Banclogix System Co., Limited regarding service agreement termination, with trial set for January 2026, and management, based on legal advice, deems no provision necessary at this stage - The Group is involved in ongoing mutual litigation with former IT service provider Banclogix concerning service agreement termination and data return issues, with the trial scheduled for **January 2026**[154](index=154&type=chunk) - Despite uncertainties regarding the litigation outcome and potential financial impact, the company's legal counsel maintains cautious optimism, leading the directors to believe no provision is currently required[154](index=154&type=chunk)

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 部份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。 CLSA Premium Limited （於開曼群島註冊成立之有限公司） （股份代號：6877） 截至二零二四年六月三十日止六個月之 未經審核中期業績 CLSA Premium Limited（「本公司」，連同其附屬公司統稱「本集團」）董事（「董事」）會 （「董事會」）提呈本集團截至二零二四年六月三十日止六個月（「二零二四年中期期 間」）之未經審核簡明綜合中期財務資料，連同二零二三年同期（「二零二三年中期期 間」）的數字比較。簡明綜合中期財務資料未經審核，惟已由本公司審核委員會（「審 核委員會」）審閱及已獲董事會批准。 簡明綜合中期全面收益表 未經審核 | --- | --- | --- | --- | |------------------|-------|----------------------------------------------|-------------------| | | ...

Financial Performance - The company reported a significant increase in revenue, achieving a total of $500 million for the fiscal year, representing a 20% growth compared to the previous year[68]. - The Group recorded a consolidated net profit of approximately HK$9.8 million for the year ended 31 December 2023, compared to a net loss of approximately HK$31.1 million in 2022, marking a significant turnaround in performance[52]. - Revenue from the healthcare business in 2023 exceeded three times that of 2022, indicating substantial growth in this segment[52]. - The Group's unaudited net profit for the six months ended 30 June 2023 was approximately HK$5.6 million, a recovery from a net loss of approximately HK$17.5 million in the same period of 2022[46]. - Total income for the year ended December 31, 2023, was HK$201,488,000, a significant increase from HK$45,854,000 in 2022, representing a growth of approximately 339%[151]. - Profit before tax for the year was HK$11,587,000, compared to a loss of HK$30,979,000 in 2022, indicating a turnaround in financial performance[152]. - The Group's profit for the year was HK$9,842,000, recovering from a loss of HK$31,052,000 in the previous year[152]. Business Strategy and Growth - The company provided guidance for the next fiscal year, projecting a revenue growth of 25% and aiming for $625 million[72]. - New product launches are expected to contribute an additional $100 million in revenue, with a focus on innovative technology solutions[73]. - The company is expanding its market presence in Southeast Asia, targeting a 30% market share within the next two years[75]. - A strategic acquisition of a smaller tech firm was completed, enhancing the company's capabilities in artificial intelligence[73]. - The Group plans to gradually expand its product lineup by adding various Chinese patent medicines and exploring new sales channels[53]. - The Group aims to enhance market reach by expanding its popular products to additional platforms in the upcoming year[47]. - The Group plans to develop its Healthcare Business in 2024, focusing on products like American ginseng slices and Arctic cod maw[129]. - The Group aims to expand its business through well-known offline channels in the PRC and launch ODM products in both the PRC and Hong Kong[129]. Corporate Governance - The board emphasized a commitment to corporate governance, with new policies implemented to ensure transparency and accountability[68]. - The Company has a strong board composition with a mix of experienced non-executive directors from diverse backgrounds in finance, technology, and academia[30]. - The independent non-executive directors bring significant expertise in governance and financial oversight, enhancing the Company's strategic direction[25]. - The Company emphasizes corporate governance through its established committees, including audit and remuneration committees led by experienced directors[25]. - Information on corporate governance practices is detailed in the Corporate Governance Report[196]. Operational Efficiency - The company reported a net profit margin of 15%, reflecting improved operational efficiency[70]. - Research and development expenses increased by 10%, totaling $50 million, to support new technology initiatives[70]. - The cost of sales for continuing operations increased to HK$151.1 million for the year ended December 31, 2023, compared to HK$32.0 million in 2022, driven by increased business activities in the healthcare sector[83][88]. - Total expenses, excluding cost of sales, rose by approximately 90% to HK$34.0 million in 2023 from HK$18.0 million in 2022[84][89]. - Other operating expenses surged by approximately 98% to HK$28.5 million in 2023 from HK$14.4 million in 2022, driven by increased marketing and consultancy costs[94][98]. Market Expansion and Customer Engagement - The Group successfully expanded its B2C model, generating approximately HK$18 million in revenue from a popular short-form video platform in 2023[63]. - The Group intends to promote its products on popular social media platforms in Hong Kong starting in 2024, leveraging the success of key opinion leaders (KOLs) in China[137]. - The Group plans to establish official accounts on popular social media sites in Hong Kong to promote its products locally in 2024[135]. - The Group aims to expand its customer base by setting up e-commerce stores and extending sales channels in the PRC[186]. - The Group is negotiating with local well-known chain stores to establish counters for selling its products, expected to be implemented by 2025[137]. Human Resources and Employee Engagement - The Group recognizes employees as valuable assets and provides competitive remuneration packages and opportunities for career advancement[184]. - The Group conducts regular appraisals to provide feedback on employee performance and discuss their needs[185]. - The Group is focused on recruiting experienced personnel to strengthen its business operations[187]. - The Group values its employees as the most important asset and aims to provide competitive compensation and opportunities for advancement[189]. - The Group will continue to recruit experienced and knowledgeable talent to strengthen its business[191]. Compliance and Risk Management - The Group is committed to compliance with regulatory requirements and has maintained all necessary licenses for its businesses throughout the reporting period[178]. - The Group's reliance on global supply chains exposes it to risks such as trade disputes and natural disasters, which can lead to shortages, delays, or increased costs[167]. - The Group has identified suppliers in different regions to reduce dependence on a single source, enhancing supply chain resilience[167]. - The Group has implemented effective inventory management practices to optimize stock levels and ensure an adequate supply of critical products[170]. - The Group continuously evaluates its business objectives to adapt to changing market conditions and mitigate risks[175].

Financial Performance - For the year ended December 31, 2023, total revenue reached HKD 199,683,000, a significant increase of 410% compared to HKD 39,125,000 in 2022[3] - Operating profit from continuing operations was HKD 14,575,000, compared to an operating loss of HKD (10,786,000) in 2022[5] - The net profit attributable to equity holders for the year was HKD 9,842,000, a turnaround from a loss of HKD (31,052,000) in the previous year[6] - Earnings per share for continuing operations improved to HKD 0.63, compared to a loss per share of HKD (0.54) in 2022[6] - The total profit for the year ended December 31, 2023, was HKD 9,842, a recovery from a loss of HKD 31,052 in 2022[23] - The net profit increased to approximately HKD 9,800,000 for the year ended December 31, 2023, compared to a net loss of about HKD 31,100,000 for the year ended December 31, 2022, driven by significant growth in the healthcare business, with sales of healthcare products exceeding three times that of 2022[75] Revenue Breakdown - For the year ended December 31, 2023, the total revenue from external customers was HKD 191,388, an increase from HKD 40,421 in 2022, representing a growth of 373%[21] - The health business segment generated revenue of HKD 191,170 for the year ended December 31, 2023, compared to HKD 39,129 in 2022, indicating a significant increase of 388%[24] - The total revenue for the health business increased approximately fourfold from about HKD 39,100,000 in the year ended December 31, 2022, to about HKD 200,000,000 in the year ended December 31, 2023[64] - The health business revenue for the year ended December 31, 2023, was approximately HKD 191,100,000, representing an increase of about 380% compared to approximately HKD 39,100,000 for the year ended December 31, 2022[65] Cost and Expenses - The cost of sales for the healthcare business was HKD (151,077,000), up from HKD (31,961,000) in the previous year, reflecting a 372% increase[5] - Total operating expenses for continuing operations increased to HKD 28,455 in 2023 from HKD 14,372 in 2022, reflecting a rise of 98%[30] - The cost of goods sold for the year ended December 31, 2023, was approximately HKD 151,077,000, compared to HKD 31,961,000 in 2022[44] - Total expenses (excluding cost of sales) increased by approximately 90% to about HKD 34,000,000 for the year ended December 31, 2023, compared to HKD 18,000,000 for the previous year[69] - Referral expenses and other costs rose from HKD 500,000 for the year ended December 31, 2022, to HKD 3,600,000 for the year ended December 31, 2023, mainly due to increased business activities in the healthcare sector[70] Assets and Liabilities - Total assets decreased to HKD 251,775,000 from HKD 284,310,000, representing a decline of approximately 11.4%[8] - Current assets also decreased to HKD 251,387,000 from HKD 283,465,000, a reduction of about 11.3%[8] - Total equity increased to HKD 239,865,000 from HKD 230,800,000, showing a growth of approximately 3.3%[8] - Current liabilities significantly decreased to HKD 11,910,000 from HKD 53,510,000, a reduction of about 77.8%[9] - Trade receivables decreased to HKD 12,979,000 in 2023 from HKD 17,991,000 in 2022, a reduction of 27.8%[45] - The total amount of other receivables and prepayments decreased to HKD 2,914,000 in 2023 from HKD 6,999,000 in 2022[49] Business Operations - The company has launched a health business segment through an international e-commerce platform, focusing on natural growth rather than mergers[18] - The company successfully expanded its B2C model on a popular short video platform in China, generating approximately HKD 18,000,000 in revenue for the year[60] - The company established a strategic cooperation agreement for OEM/ODM business with Beijing Tongrentang (Hong Kong) Co., Ltd. and Zhongke Molecular Biology (Guangdong) Co., Ltd.[61] - The healthcare business will offer products such as ginseng slices, Arctic cod belly, and bird's nest from Indonesia and Malaysia, targeting local market preferences[90] - The company aims to expand its business through established e-commerce cross-border channels and plans to distribute ODM products in the Hong Kong market via multiple sales channels in 2024[92] - A collaboration with Japanese pharmaceutical companies is planned to distribute related medicines through e-commerce sales channels, following the acquisition of a wholesale license from the Hong Kong Department of Health[92] - The company is negotiating with local well-known chain stores to establish counters for selling its products, expected to be implemented before 2025[92] - An official account will be set up on popular social media platforms in Hong Kong to promote its products, leveraging the success of key opinion leaders (KOLs) in China[92] Corporate Governance and Compliance - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2023, which may impact future financial reporting[12] - The company plans to adopt new Hong Kong Financial Reporting Standards that will come into effect in 2024 and 2025, which may impact future financial reporting[16] - The company has complied with the corporate governance code throughout 2023 and will continue to review its governance practices[97] - The company has maintained a sufficient public float of at least 25% of its total issued share capital as required by listing rules[96] - The company did not recommend any dividend for the year ended December 31, 2023, consistent with 2022[36] - No final dividend is recommended for the year ended December 31, 2023, consistent with the previous year[95] Market and Trading Status - The company has suspended its margin trading business in Hong Kong and terminated its operations in New Zealand and Australia during 2022[17] - The group recorded a net foreign exchange loss of approximately HKD 200,000 for the year ended December 31, 2023, compared to a net gain of HKD 3,500,000 for the previous year[79] - The group did not have any significant investments, acquisitions, or disposals during the year ended December 31, 2023[81] - The company's shares have been suspended from trading since April 25, 2023, until further notice[104]