Financial Performance - The group reported an operating loss of approximately HKD 16,036,000 for the fiscal year ending March 31, 2024, compared to an operating loss of HKD 5,237,000 in 2023, representing an increase of approximately 205.56%[2]. - Total revenue for the fiscal year was HKD 38,962,000, a decrease of approximately 29.49% from HKD 55,353,000 in the previous year[3]. - Gross profit decreased to HKD 18,674,000 from HKD 27,009,000, reflecting a decline of approximately 30.93%[3]. - The group recorded a net loss attributable to shareholders of HKD 17,110,000, compared to HKD 5,881,000 in the previous year, marking an increase of approximately 190.56%[5]. - The pre-tax loss increased to HKD 16,344,000 from HKD 5,651,000, representing an increase of approximately 189.22%[33]. - The company reported a loss attributable to ordinary shareholders of HKD 17,110,000 for the year ended March 31, 2024, compared to a loss of HKD 5,881,000 for the previous year[55]. - The group reported a net loss of HKD 17,387,000 for the year ending March 31, 2024, with current liabilities exceeding current assets by approximately HKD 16,910,000, indicating significant uncertainty regarding the group's ability to continue as a going concern[112]. - The total comprehensive expenses for the year were HKD 17,968,000, compared to HKD 6,992,000 in the previous year[131]. Revenue and Income - Other income significantly dropped to HKD 149,000 from HKD 5,235,000, a decrease of approximately 97.15%[30]. - The company's revenue for the year ended March 31, 2024, was approximately HKD 38,962,000, a decrease of about 29.61% compared to HKD 55,353,000 in the previous year[149]. - For the fiscal year ending March 31, 2024, the group reported total revenue from comprehensive hospital services of HKD 38,962,000, a decrease of 29.5% from HKD 55,353,000 in the previous year[195]. Expenses and Costs - Selling and distribution expenses decreased by approximately 34.20% to HKD 8,918,000 from HKD 13,553,000, primarily due to the temporary suspension of operations at Beijing ZhiJing Hospital[31]. - Total financial expenses for the year ended March 31, 2024, were approximately HKD 308,000, a decrease of about 25.60% from HKD 414,000 in the previous year, primarily due to reduced interest expenses on lease liabilities[61]. - Employee costs, including director remuneration, were approximately HKD 22,669,000 for the year ending March 31, 2024, down from HKD 25,757,000 in the previous year[99]. - The group’s financial expenses for the year included salaries and allowances totaling HKD 17,992,000, down from HKD 20,401,000 in the previous year[198]. - The group’s depreciation of right-of-use assets was HKD 3,136,000 for the year, compared to HKD 4,192,000 in the previous year[169]. Assets and Liabilities - As of March 31, 2024, approximately HKD 1,503,000 of the group's bank balance was frozen due to legal proceedings, compared to HKD 4,144,000 in the previous year[39]. - The company's trade payables at the end of the reporting period were approximately HKD 1,270,000, down from HKD 1,709,000 in the previous year[57]. - The company has no bank borrowings as of March 31, 2024, and its assets are not subject to any mortgages[70]. - Current liabilities amounted to HKD 15,510,000, a decrease from HKD 17,792,000 in the previous year[134]. - The group recorded total current assets of approximately HKD 8,705,000 as of March 31, 2024, down from HKD 27,062,000 in the previous year, resulting in a current ratio of approximately 0.34 compared to 1.33 in the prior year[187]. - The group reported a net asset value of HKD 1,407,000 as of March 31, 2024, a significant decrease from HKD 19,375,000 in the previous year[157]. - The company's cash and bank balances decreased to HKD 3,644,000 from HKD 17,685,000 in the previous year[134]. Corporate Governance and Compliance - The company has adopted a corporate governance code that meets or exceeds the standards set out in the GEM Listing Rules[85]. - The company has complied with the applicable code provisions of the corporate governance code as per GEM Listing Rules Appendix C1[120]. - The audit committee has reviewed the financial performance for the year and confirmed compliance with applicable accounting standards and regulations[123]. Strategic Initiatives - The group aims to adapt to the evolving healthcare market by continuously assessing market trends and patient needs to enhance service offerings[35]. - Financial prudence and sustainability remain a priority, with the group committed to maintaining financial stability while seeking growth opportunities aligned with strategic goals[38]. - The company is undertaking comprehensive upgrades to hospital facilities, including renovations and modernization of treatment areas, to enhance patient experience[63]. - The group is investing in advanced medical technologies, including diagnostic imaging systems and high-tech sterilization equipment, to enhance service quality and efficiency[91]. - The company is implementing digital healthcare solutions to streamline processes and ensure excellent customer service, aiming for a seamless patient experience[92]. - The group has established strategic partnerships with leading medical institutions to enhance service capabilities and attract top professionals, aiming to improve its reputation in the healthcare industry[184]. - The group is focusing on regulatory compliance and quality assurance measures to ensure uninterrupted operations, including strict internal audits and ongoing employee training[185]. - The group plans to diversify its hospital services to meet various patient needs, from general disease treatment to specialized care, over the coming years[177]. Shareholder Information - The company did not recommend a final dividend for the year ended March 31, 2024, compared to no dividend in the previous year[62]. - The company does not recommend the distribution of a final dividend for the year ended March 31, 2024, consistent with the previous year[150]. - The weighted average number of ordinary shares issued remained at 563,650,000 for both years[55]. - The company has undergone a share consolidation effective September 13, 2023, following shareholder approval[106]. Other Information - The group has no significant capital commitments as of March 31, 2024[95]. - The group did not receive any government subsidies in the current year, compared to HKD 192,000 in the previous year[196]. - The group has not identified any single customer contributing more than 10% to total revenue, indicating a diversified customer base[163]. - The company has not implemented any formal hedging policies to manage foreign exchange risks, as most transactions are conducted in RMB and HKD[98]. - Other losses, mainly from the sale of properties, plant, and equipment, amounted to approximately HKD 2,075,000 for the year ended March 31, 2024, compared to HKD 0 in the previous year[59].

Financial Performance - For the six months ended September 30, 2023, the total revenue was approximately HKD 26,125,000, a decrease of about 8.01% compared to HKD 28,400,000 for the same period in 2022[4] - The gross profit margin for the six months ended September 30, 2023, was approximately 74.22%, down by about 7.52 percentage points from 81.74% in the same period of 2022[4] - The loss attributable to owners of the company for the six months ended September 30, 2023, was approximately HKD 7,160,000, compared to a loss of HKD 6,710,000 in the same period of 2022[4] - The company reported a total comprehensive loss of HKD 8,215,000 for the six months ended September 30, 2023, compared to HKD 7,987,000 for the same period in 2022[7] - The basic loss per share for the six months ended September 30, 2023, was HKD 1.270, compared to HKD 1.190 for the same period in 2022[7] - The group recorded a loss attributable to owners of approximately HKD 7,161,000, compared to a loss of HKD 6,710,000 in the previous year, mainly due to decreased revenue and increased cost of sales[40] Assets and Liabilities - As of September 30, 2023, total assets amounted to HKD 33,271,000, a decrease from HKD 41,696,000 as of March 31, 2023[8] - The total liabilities as of September 30, 2023, were HKD 22,111,000, slightly down from HKD 22,321,000 as of March 31, 2023[9] - The company's equity attributable to owners was HKD 14,076,000 as of September 30, 2023, down from HKD 22,190,000 as of March 31, 2023[8] - The group's current assets totaled approximately HKD 8,802,000, while current liabilities were approximately HKD 19,475,000, resulting in a current ratio of about 0.45[45] Cash Flow - The cash and cash equivalents decreased to HKD 4,983,000 as of September 30, 2023, from HKD 17,685,000 as of March 31, 2023[8] - The net cash generated from operating activities for the six months ended September 30, 2023, was HKD 909,000, compared to a cash outflow of HKD 604,000 in the same period last year[14] - The company’s investment activities resulted in a cash outflow of HKD 14,521,000 for the six months ended September 30, 2023, compared to a cash inflow of HKD 159,000 in the same period last year[14] - The company’s financing activities generated a net cash inflow of HKD 575,000 for the six months ended September 30, 2023, compared to a cash outflow of HKD 2,433,000 in the same period last year[14] Operational Efficiency - Employee costs, including director remuneration, amounted to HKD 11,214,000 for the six months ended September 30, 2023, down from HKD 12,865,000 in the previous year, indicating a decrease of approximately 12.8%[24] - Administrative expenses decreased by approximately 14.2% to HKD 21,881,000 from HKD 25,503,000, primarily due to reduced employee costs[40] - The company continues to focus on expanding its integrated hospital services in China, which remains a key strategic priority[16] - The group will continue to prioritize operational efficiency and prudent risk management in response to the evolving healthcare landscape[43] Dividends and Shareholder Information - The company did not recommend the distribution of dividends for the six months ended September 30, 2023, consistent with the previous year[4] - Major shareholder Xingyang Global Limited holds 316,391,892 shares, representing 56.13% of the issued share capital[73] - Ms. Zheng Huixian, as a spouse, has rights to 328,191,892 shares, accounting for 58.22% of the issued share capital[73] - New Hope International (Hong Kong) Limited owns 68,643,507 shares, which is 12.18% of the issued share capital[73] Corporate Governance - The company has adopted a code of conduct regarding securities trading by directors, which complies with GEM Listing Rules[83] - The company has adhered to the corporate governance code as per GEM Listing Rules Appendix 15 during the six months ending September 30, 2023[84] - The Audit Committee, established on November 2, 2001, is responsible for ensuring adequate financial controls and overseeing the performance of financial reporting processes[88] - The unaudited consolidated results for the review period have been reviewed by the Audit Committee and are prepared in accordance with applicable accounting standards and GEM listing rules[90] Legal and Regulatory Matters - Following a court ruling, the group is required to refund approximately RMB 12,130,000 (approximately HKD 13,863,000) to China Merchants Hainan Development Investment Co., Ltd.[63] - The group is currently seeking legal advice regarding ongoing litigation related to the subsidiary, Edinburgh International Hospital Management[63] Changes in Management - The board of directors has undergone changes, with Mr. Zheng resigning and Mr. Wu appointed as an executive director effective August 22, 2023[66]

（於開曼群島註冊成立之有限公司） 8143 （股份代號： ） 截至二零二三年九月三十日止六個月之 中期業績公佈 GEM GEM 香港聯合交易所有限公司（「聯交所」） （「 」）之特色 GEM 為投資風險較其他於聯交所上市之公司為高之中小型公司提供上市之市場。有意投資之 人士應了解投資於該等公司之潛在風險，並應經過審慎周詳之考慮後方作出投資決定。 GEM GEM 由於 上市之公司通常為中小型公司，在 買賣之證券可能會較在聯交所主板買賣之 GEM 證券承受較大之市場波動風險，同時無法保證在 買賣之證券會有高流通量之市場。 香港交易及結算所有限公司以及香港聯合交易所有限公司對本公佈之內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部分內容而產生或 因倚賴該等內容而引致之任何損失承擔任何責任。 GEM GEM 本公佈乃根據 證券上市規則（「 上市規則」）提供有關金威醫療集團有限公司（「本公 司」）之資料，本公司董事（「董事」）願就本公佈之內容共同及個別承擔全部責任。董事在作出一 切合理查詢後確認，據彼等所深知及確信，本公佈所載之資料於各重大方面均屬準確完整，且 無誤導或欺騙成分， ...

Financial Performance - For the three months ended June 30, 2023, the group recorded revenue of approximately HKD 13,926,000, a decrease of about 0.94% compared to approximately HKD 14,058,000 for the same period in 2022[3] - The gross profit margin for the three months ended June 30, 2023, was approximately 73.8%, down by about 9.9 percentage points from approximately 83.7% for the same period in 2022[3] - The group reported a loss attributable to owners of the company of approximately HKD 3,852,000 for the three months ended June 30, 2023, compared to a loss of approximately HKD 3,954,000 for the same period in 2022[3] - The total comprehensive loss for the period was approximately HKD 4,837,000, compared to HKD 5,157,000 for the same period in 2022[6] - The basic and diluted loss per share for the period was HKD 0.137, unchanged from HKD 0.140 for the same period in 2022[6] Dividends and Equity - The board of directors did not recommend the payment of dividends for the three months ended June 30, 2023, consistent with the previous year[3] - The company’s total equity attributable to owners decreased to approximately HKD 17,467,000 as of June 30, 2023, from HKD 24,612,000 as of June 30, 2022[8] Administrative Expenses - The group incurred administrative expenses of approximately HKD 11,321,000 for the three months ended June 30, 2023, down from HKD 13,215,000 in the same period of 2022[5] - Total other income for the three months ended June 30, 2023, was HKD 49,000, down from HKD 311,000 in the same period last year, primarily due to the absence of government subsidies and bond interest income[14] - Administrative expenses for the three months ended June 30, 2023, were approximately HKD 11,321,000, a decrease of about 14.33% from HKD 13,215,000 in the previous year[23] Business Strategy and Operations - Management aims to improve the performance of existing hospital operations, which will continue to be the main source of revenue for the group in the coming year[27] - The group plans to strategically allocate resources to develop disease prevention and management in response to the shift in China's healthcare policy towards prevention[27] - The group will invest in training medical personnel and upgrading existing medical equipment to enhance competitiveness and ensure quality and safety in healthcare services[27] - The group is exploring new business opportunities and partnerships within the healthcare sector to strengthen its capabilities and market position[27] Legal Matters and Financial Recoveries - The company is seeking the return of approximately RMB 12,130,000 (equivalent to about HKD 13,863,000) from the Shenzhen Intermediate People's Court following a civil judgment[33] - The company is also pursuing the return of an investment balance of approximately RMB 3,200,000 (equivalent to about HKD 3,625,000) from Edinburgh International Diabetes[33] - Edinburgh Hospital Management is required to return approximately RMB 4,900,000 to the company, which was previously advanced under a cooperation agreement[35] - The company is entitled to receive approximately RMB 1,400,000 as compensation for breach of contract and related costs from Edinburgh Hospital Management[35] Shareholding and Corporate Governance - As of June 30, 2023, Mr. Wu Zhihong holds a beneficial interest in 59,000,000 shares, representing approximately 2.09% of the issued shares[36] - Mr. Wu Zhihong also holds a beneficial interest in 1,581,959,460 shares of a controlled company, representing approximately 56.13%[36] - Major shareholder Xingyang holds 1,581,959,460 shares, representing approximately 56.13% of the issued shares[40] - New Hope International holds 343,217,539 shares, representing approximately 12.18% of the issued shares[40] - The company has not reported any significant events after the reporting period[34] - The company is currently seeking legal advice regarding the related litigation[33] Compliance and Governance - The company has complied with the corporate governance code as per GEM Listing Rules Appendix 15 during the three months ended June 30, 2023[50] - The audit committee reviewed the unaudited condensed consolidated financial statements for the three months ended June 30, 2023, and found them to be prepared in accordance with applicable accounting standards[56] - The company has established a remuneration committee to determine the specific remuneration packages of all executive directors[53] - The company has a nomination and corporate governance committee responsible for reviewing the board's structure and recommending suitable candidates for board membership[54] - The company has adopted a code of conduct for securities transactions by directors, confirming compliance during the three months ended June 30, 2023[49] - There were no arrangements made for directors or key executives to benefit from purchasing the company's or any other corporation's shares or debt securities during the reporting period[43] - The company has no provisions in its articles of association or Cayman Islands law regarding pre-emptive rights for existing shareholders to subscribe for new shares on a pro-rata basis[48] - As of June 30, 2023, directors or their associates did not own any business that competes directly or indirectly with the group[47]

Financial Performance - The Group's revenue for the year ended March 31, 2023, was approximately HK$55.353 million, representing an increase of approximately 2.06% compared to HK$54.238 million in 2022[20] - The operating loss for the year was approximately HK$5.237 million, an improvement from the operating loss of approximately HK$5.891 million in 2022[20] - The net loss attributable to owners of the Company for the year was approximately HK$5.881 million, significantly reduced from a net loss of approximately HK$12.689 million in 2022[20] - Gross profit was approximately HK$27.009 million, an increase of approximately 1.31% from HK$26.660 million in the previous year[30] - Other revenue, including government subsidies and bank interest income, amounted to approximately HK$5.235 million, significantly up from HK$2.132 million in 2022[35] - Selling and distribution expenses decreased by approximately 35.16% to HK$13.553 million from HK$20.902 million due to the disposal of Edinburgh Hospital Management[41] - Administrative expenses decreased by approximately 42.69% to HK$23.754 million from HK$41.447 million, also attributed to the disposal[42] - Finance costs decreased by approximately 74.98% to HK$0.414 million from HK$1.655 million, reflecting reduced interest expenses on lease liabilities[43] Operational Changes - The Group operates one general hospital in Beijing, down from two hospitals in Putian and Beijing in 2022, focusing on expanding hospital services[21] - The Group's revenue primarily came from the provision of general hospital services during the year ended March 31, 2023[76] - The Group plans to enhance its services and explore new business opportunities in response to the recovering healthcare market in the PRC[53] - The Group plans to invest resources in training medical personnel and upgrading existing medical equipment to enhance competitiveness[56] - The Group aims to explore new business development directions and potential collaborations with various partners in the healthcare sector[56] Financial Position - As of 31 March 2023, the Group had total cash and bank balances of approximately HK$17.685 million, an increase from HK$16.795 million in 2022[54] - The Group's total current assets were approximately HK$27.062 million, down from approximately HK$39.753 million in 2022[58] - The Group's total current liabilities as of March 31, 2023, were approximately HK$20.325 million, compared to approximately HK$29.228 million in 2022[62] - The current ratio of the Group was approximately 1.33 as of March 31, 2023, slightly down from 1.36 in 2022[58] - The Group had no material capital commitments as of March 31, 2023[60] - The Group's gearing ratio was not applicable as of March 31, 2023, based on outstanding debts[59] Employee Information - The group employed 139 full-time staff as of March 31, 2023, an increase from 137 in 2022, with staff costs amounting to approximately HK$25.757 million, down from HK$31.487 million in 2022, reflecting a decrease of about 18%[82][83] Legal Matters - A civil complaint was filed against Edinburgh Hospital Management, seeking the termination of a cooperation agreement and the refund of approximately RMB12.13 million (approximately HK$14.973 million)[95] - The court ordered Edinburgh Hospital Management to return approximately RMB4.9 million (approximately HK$5.8 million) to China Merchants, along with liquidated damages and costs amounting to approximately RMB1.4 million (approximately HK$1.728 million)[98][99] - The Shenzhen Intermediate Court upheld the Civil Judgment, rejecting appeals from both parties on March 31, 2023[100] - A new civil complaint was filed on June 13, 2023, seeking the refund of approximately RMB3.2 million (approximately HK$3.625 million) from Edinburgh International Diabetes[101] - The company is currently seeking legal advice regarding ongoing litigation and will keep shareholders informed of significant developments[102] - China Merchants is seeking the refund of approximately RMB 12.13 million (equivalent to approximately HK$ 13.86 million) through a civil appeal filed with the Shenzhen Intermediate People's Court[104] - On June 13, 2023, Edinburgh International Diabetes received a civil complaint seeking the refund of the remaining investment balance of approximately RMB 3.2 million (equivalent to approximately HK$ 3.625 million)[108] - The Shenzhen Intermediate People's Court dismissed the appeal on March 31, 2023, maintaining the original civil judgment[104] Governance and Compliance - The Company has complied with the applicable code provisions in the Corporate Governance Code throughout the year ended March 31, 2023[139] - The Company has adopted a set of code for the required standard of dealings in securities by Directors, confirming full compliance for the year ended March 31, 2023[140] - The Board is collectively responsible for promoting the success of the Company and its business by directing and supervising the Company's affairs[146] - Management must report to the Board and obtain prior approval before making decisions for key matters or entering into commitments on behalf of the Company[149] - The Board has established three committees: the Audit Committee, the Nomination and Corporate Governance Committee, and the Remuneration Committee, each with defined written terms of reference[150] - Appropriate directors' liability insurance cover has been arranged to indemnify the Directors for liabilities arising out of corporate activities[151] - The Company is committed to achieving high standards of corporate governance to protect and promote the interests of all shareholders[138] - The Board has a balance of skill and experience appropriate for the requirements of the Company's business[149] - All Directors have full and timely access to relevant information and the advice of the company secretary[147] - The Company acknowledges the importance of corporate governance as a key element in creating shareholder value[138] - The Board currently comprises two executive Directors and three independent non-executive Directors, with eight full Board meetings held during the year ended March 31, 2023[154] - Each independent non-executive Director has provided a written annual confirmation of their independence, satisfying the requirements of the GEM Listing Rules[163] - All Directors have access to operational and financial reports reflecting the Group's performance, position, and prospects[164] - The Company has provided training to Directors in the form of seminars and reading materials to ensure they understand their responsibilities and the latest regulatory requirements[166] - A total of 100% attendance was recorded for all Board meetings by the executive Directors during the year[170] - The Company will review the effectiveness of its corporate governance structure periodically and consider necessary changes[170] - One-third of the Directors are required to retire by rotation at least once every three years, ensuring a refresh of the Board[172] - Each independent non-executive Director has a one-year appointment term, subject to retirement by rotation and re-election at annual general meetings[173] - The Company has established three committees: Audit Committee, Remuneration Committee, and Nomination and Corporate Governance Committee to oversee specific areas of governance[154] - The Company has arranged suitable Directors' liability insurance to protect Directors from liabilities incurred while conducting Company activities[153] - The Group's audited consolidated financial results for the year ended 31 March 2023 were reviewed by the Audit Committee, confirming compliance with applicable accounting standards and adequate disclosures[199] - The Audit Committee held four meetings during the year ended 31 March 2023 to review financial results and oversee risk management and internal control systems[196] - The Company has no chief executive officer, with daily operations managed by executive Directors and senior management, ensuring a balance of power and authority[179] - The Board regularly meets to discuss strategic direction and approve annual, interim, and quarterly results[180] - The Audit Committee's primary duties include ensuring the adequacy of financial controls and monitoring the integrity of financial statements[194] - Independent non-executive Directors are present to monitor operations and ensure compliance with governance practices[179] - The Company Secretary assists in preparing notices and agendas for Board meetings, ensuring compliance with corporate governance practices[184] - All Directors have access to Board papers and related materials to make informed decisions[187] - The roles of chairman and chief executive are separated, with Mr. Ng Chi Lung serving as the chairman[178] - The Audit Committee reviews the relationship with external auditors and makes recommendations regarding their appointment[197] - The Nomination and Corporate Governance Committee was established on February 11, 2014, replacing the previous nomination committee[200] - The committee consists of four members: one executive Director and three independent non-executive Directors[200]

Financial Performance - For the nine months ended December 31, 2022, the total revenue was approximately HKD 40,984,000, an increase of about 2.54% compared to HKD 39,967,000 for the same period in 2021[4] - The company reported a loss attributable to owners of approximately HKD 10,077,000 for the nine months ended December 31, 2022, compared to a profit of HKD 2,729,000 for the same period in 2021, primarily due to the absence of a one-time gain from the sale of a subsidiary amounting to HKD 31,700,000[4] - For the three months ended December 31, 2022, the loss attributable to owners was approximately HKD 3,367,000, compared to a loss of HKD 4,477,000 for the same period in 2021[4] - The gross profit for the nine months ended December 31, 2022, was HKD 32,592,000, a decrease from HKD 33,558,000 in the same period of 2021[5] - The total comprehensive loss for the nine months ended December 31, 2022, was HKD 11,964,000, compared to a total comprehensive profit of HKD 9,125,000 for the same period in 2021[6] - The basic loss per share for the nine months ended December 31, 2022, was HKD (0.358), compared to earnings of HKD 0.097 per share for the same period in 2021[6] - The diluted loss per share for the three months ended December 31, 2022, was HKD (0.120), and for the nine months, it was HKD (0.358)[20] Expenses and Costs - The operating loss for the nine months ended December 31, 2022, was HKD 8,952,000, compared to an operating profit of HKD 8,352,000 for the same period in 2021[5] - The company incurred administrative expenses of HKD 36,712,000 for the nine months ended December 31, 2022, down from HKD 46,056,000 in the same period of 2021[5] - The financial costs for the nine months ended December 31, 2022, were HKD 329,000, compared to HKD 1,365,000 for the same period in 2021[5] - Selling and distribution expenses decreased by approximately 57.90% to HKD 5,528,000 for the nine months ended December 31, 2022, down from HKD 13,130,000 in the previous year, primarily due to the sale of a subsidiary[24] - Administrative expenses also saw a reduction of about 20.29%, amounting to HKD 36,712,000 for the nine months ended December 31, 2022, compared to HKD 46,056,000 in the previous year, again linked to the sale of the subsidiary[24] Dividend and Share Capital - The company did not recommend the distribution of dividends for the nine months ended December 31, 2022, consistent with the previous year[4] - The total issued share capital of the company as of December 31, 2022, is approximately HKD 29,168,000, consisting of 2,818,249,944 ordinary shares and 98,500,000 non-voting convertible preference shares[10] - No dividends were recommended for the nine months ended December 31, 2022, consistent with the previous year[30] Legal and Regulatory Matters - The company’s subsidiary, Edinburgh International Hospital Management, is involved in a lawsuit with China Merchants Hainan Development Investment Co., Ltd., seeking the return of approximately RMB 12,130,000 and additional compensation of about RMB 1,400,000[32] - The court ruling on September 6, 2022, ordered the termination of the cooperation agreement and required the return of RMB 4,900,000, which was unutilized funds previously advanced by China Merchants[34][35] - The company continues to monitor the legal proceedings and their potential impact on operations and financials[32][35] Corporate Governance - The company has complied with the corporate governance code as per GEM Listing Rules during the nine months ended December 31, 2022[53] - The audit committee has reviewed the unaudited condensed consolidated results, ensuring compliance with applicable accounting standards and GEM Listing Rules[61] - The company has established a remuneration committee to determine the remuneration packages of executive directors, considering factors such as comparable company salaries and performance-linked compensation[55] - The company has a nomination and corporate governance committee responsible for reviewing the board's structure and recommending suitable candidates for board positions[58] - The company has adopted a code of conduct for securities transactions by directors, ensuring compliance with GEM Listing Rules[52] - The company has maintained effective internal controls and risk management systems as overseen by the audit committee[59] Future Outlook - The company plans to continue evaluating the impact of COVID-19 on its operations and financial performance while monitoring related risks[28] - Future growth is expected to be supported by factors such as an aging population, increasing per capita income, and expanding health insurance coverage in China[28] - Management intends to allocate more resources to explore new opportunities and strengthen partnerships within the healthcare sector to enhance market position[28] Shareholder Information - As of December 31, 2022, the company’s director, Mr. Wu Zhihong, holds personal rights to 59,000,000 shares, representing approximately 2.09% of the total issued shares, and corporate rights to 1,581,959,460 shares, representing approximately 56.13%[38] - Major shareholder, Xingyang Global Limited, holds 1,581,959,460 shares, accounting for approximately 56.13% of the total issued shares[43] - Ms. Zheng Huiyan, as a spouse, has rights to 1,640,959,460 shares, which is about 58.22% of the total issued shares[43] - New Hope International (Hong Kong) Limited owns 343,217,539 shares, representing approximately 12.18% of the total issued shares[43] Miscellaneous - The company has relocated its registered office in the Cayman Islands effective October 1, 2022[36] - No significant events occurred after the reporting period[36] - No stock options were granted, exercised, canceled, or lapsed under the stock option plan as of December 31, 2022[47] - The company did not purchase, sell, or redeem any of its listed securities during the nine months ended December 31, 2022[49] - There are no provisions in the company's articles of association or Cayman Islands law regarding pre-emptive rights for existing shareholders to subscribe for new shares[51] - The company has not engaged in any arrangements that would allow directors or key executives to benefit from purchasing shares or debt securities of the company or any other entity during the review period[50]

Financial Performance - For the six months ended September 30, 2022, the group recorded total revenue of approximately HKD 28,400,000, an increase of about 7.72% compared to HKD 26,364,000 for the same period in 2021[4]. - The gross profit margin for the six months ended September 30, 2022, was approximately 81.74%, a decrease of about 0.77 percentage points from 82.51% in the same period of 2021[4]. - The group reported a loss attributable to owners of the company of approximately HKD 6,710,000 for the six months ended September 30, 2022, compared to a profit of HKD 7,206,000 in the same period of 2021, primarily due to the absence of a one-time gain from the sale of a subsidiary amounting to HKD 31,700,000[4]. - The total comprehensive loss for the period was HKD 2,829,000, compared to a total comprehensive income of HKD 24,148,000 for the same period in 2021[8]. - The company reported a basic loss per share of HKD 0.098 for the six months ended September 30, 2022, compared to earnings per share of HKD 0.566 for the same period in 2021[8]. - The group recorded a revenue of approximately HKD 28,400,000 for the six months ended September 30, 2022, representing an increase of about 7.72% compared to HKD 26,364,000 in the same period last year[50]. - The company reported a total comprehensive income of HKD 8,734,000 for the period, compared to HKD 13,638,000 in the previous year, reflecting a decline of 36.4%[13]. Assets and Liabilities - The total assets as of September 30, 2022, amounted to HKD 54,710,000, a decrease from HKD 60,448,000 as of March 31, 2022[10]. - The company's equity attributable to owners decreased to HKD 21,727,000 as of September 30, 2022, from HKD 29,591,000 as of March 31, 2022[10]. - Total liabilities increased to HKD 36,330,000 as of September 30, 2022, compared to HKD 34,081,000 as of March 31, 2022, reflecting a growth of 6.6%[11]. - Current liabilities rose to HKD 33,002,000 from HKD 29,228,000, marking an increase of 12.0%[11]. - The company’s total assets less current liabilities decreased to HKD 21,708,000 from HKD 31,220,000, a drop of 30.5%[11]. - Total equity and liabilities amounted to HKD 54,710,000 as of September 30, 2022, down from HKD 60,448,000 as of March 31, 2022, a decrease of 9.5%[11]. Cash Flow - The cash and cash equivalents as of September 30, 2022, were HKD 12,626,000, down from HKD 16,795,000 as of March 31, 2022[10]. - Cash and cash equivalents decreased to HKD 12,626,000 from HKD 26,362,000, representing a decline of 52.1%[20]. - Net cash used in operating activities was HKD (604,000) for the six months ended September 30, 2022, compared to HKD (11,580,000) for the same period in 2021, indicating an improvement[21]. - Net cash used in investing activities was HKD 159,000, a significant recovery from HKD (2,221,000) in the previous year[21]. - Net cash generated from financing activities was HKD (2,433,000), down from HKD 1,807,000 in the prior year, showing a decrease in financing inflow[21]. - The group’s cash flow from operations showed a significant negative shift, indicating potential liquidity challenges moving forward[21]. Employee Costs and Operations - The group incurred employee costs of HKD 5,804,000 for the three months ended September 30, 2022, compared to HKD 9,081,000 in 2021, a reduction of about 36.5%[34]. - Total employee costs for the six months ended September 30, 2022, amounted to approximately HKD 12,865,000, down from HKD 19,800,000 in the previous year[67]. - As of September 30, 2022, the group employed 103 full-time employees, a decrease from 137 employees as of March 31, 2022[67]. Dividends and Shareholder Information - The company did not recommend the distribution of dividends for the six months ended September 30, 2022, consistent with the previous year[4]. - The group did not recommend the payment of dividends for the six months ended September 30, 2022, consistent with the previous year[63]. - As of September 30, 2022, the major shareholder, Xingyang Global Limited, holds 1,581,959,460 shares, representing approximately 56.13% of the total issued shares[86]. - Ms. Zheng Huixian, as a spouse of the beneficial owner, holds 1,640,959,460 shares, accounting for about 58.22% of the total issued shares[86]. - New Hope International (Hong Kong) Limited owns 343,217,539 shares, which is approximately 12.18% of the total issued shares[86]. Corporate Governance - The company has adopted a code of conduct regarding securities trading by directors, which complies with GEM Listing Rules[98]. - The company has adhered to the corporate governance code as stipulated in the GEM Listing Rules during the six months ending September 30, 2022[99]. - The remuneration committee is responsible for determining the specific remuneration packages of all executive directors, considering factors such as comparable company salaries and performance-linked remuneration[100]. - The nomination and corporate governance committee was established to review the board's structure and recommend suitable candidates for board membership[102]. - The audit committee was established on November 2, 2001, consisting of three independent non-executive directors[103]. - The audit committee's main responsibilities include ensuring adequate financial controls and overseeing risk management and internal control systems[103]. - The unaudited consolidated performance for the review period has been reviewed by the audit committee and deemed compliant with applicable accounting standards and GEM listing rules[105]. Legal Matters - A lawsuit involving an indirect subsidiary resulted in a court ruling that required the subsidiary to refund approximately RMB 4,900,000 to the plaintiff and pay damages of about RMB 1,400,000[70][72]. Other Information - The group has not provided any significant impact on its financial position or performance due to the application of revised Hong Kong Financial Reporting Standards during the period[29]. - All revenues and assets of the group are primarily located in China, with no significant business or geographical segment reporting[33]. - The group completed the sale of its subsidiary on September 1, 2021, resulting in the exclusion of the subsidiary's financial performance from the consolidated financial statements[47]. - The group did not engage in any significant acquisitions or disposals of subsidiaries or associates during the review period[68]. - The group has not implemented any formal hedging or alternative policies to address foreign exchange risks, as most transactions are denominated in RMB and HKD[65]. - As of September 30, 2022, the group had pledged bank deposits of approximately zero HKD as collateral for general bank financing[66]. - The company did not purchase, sell, or redeem any of its listed securities during the six months ending September 30, 2022[94]. - There were no unexercised stock options under the stock option plan as of September 30, 2022, and no options were granted, exercised, canceled, or lapsed during the period[93]. - There were no significant events occurring after the reporting period[76]. - The company has changed its Hong Kong share transfer registration office address effective August 15, 2022[74]. - The company's board members have not reported any interests in share options or related securities as of September 30, 2022[84].

Cover and Summary [Performance Summary](index=3&type=section&id=%E6%91%98%E8%A6%81) For the three months ended June 30, 2022, the Group's revenue grew by 5.92% to HKD 14.06 million, gross margin increased to 83.7%, and loss attributable to owners significantly narrowed to HKD 3.95 million Performance Highlights (HKD) | Indicator | For the Three Months Ended June 30, 2022 | For the Three Months Ended June 30, 2021 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 14,058,000 | 13,272,000 | +5.92% | | Gross Profit Margin | 83.7% | 82.08% | +1.62 percentage points | | Loss Attributable to Owners of the Company | 3,954,000 | 8,740,000 | Loss narrowed | | Dividend | Not declared | Nil | - | Unaudited Condensed Consolidated Financial Statements [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This quarter, revenue reached HKD 14.06 million with gross profit of HKD 11.77 million, and operating loss narrowed to HKD 2.96 million due to reduced expenses, resulting in a loss attributable to owners of HKD 3.95 million Consolidated Statement of Profit or Loss and Other Comprehensive Income (HKD thousands) | Item | For the Three Months Ended June 30, 2022 | For the Three Months Ended June 30, 2021 | | :--- | :--- | :--- | | Revenue | 14,058 | 13,272 | | Gross Profit | 11,766 | 10,894 | | Selling and Distribution Expenses | (1,817) | (5,463) | | Administrative Expenses | (13,215) | (16,535) | | Loss from Operations | (2,955) | (9,997) | | Loss for the Period | (4,355) | (10,599) | | Loss Attributable to Owners of the Company | (3,954) | (8,740) | | Basic Loss Per Share (HK cents) | (0.140) | (0.310) | [Consolidated Statement of Changes in Equity](index=6&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) Total equity attributable to owners of the Company decreased from HKD 34.61 million to HKD 21.20 million for the three months ended June 30, 2022, primarily due to the total comprehensive loss incurred - As of June 30, 2022, total equity attributable to owners of the Company was **HKD 21.20 million**, a decrease from **HKD 34.61 million** as of April 1, 2022, primarily due to the total comprehensive loss recorded during the period[79](index=79&type=chunk) [Notes to the Financial Statements](index=7&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8%E9%99%84%E8%A8%BB%EF%BC%88%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%EF%BC%89) This section details the company's information, financial statement preparation basis, key accounting policies, and provides explanations for revenue, taxation, loss per share, and dividends [Company Information, Basis of Preparation and Accounting Policies](index=7&type=section&id=1.%20%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99%20%26%202.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The Company, an investment holding entity registered in the Cayman Islands, primarily operates integrated hospital services in China, with financial statements prepared in HKD under HKFRS and consistent accounting policies - The Company is an investment holding company, with its subsidiaries primarily providing integrated hospital services in China[81](index=81&type=chunk) - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, with accounting policies consistent with those adopted in the 2021/2022 financial statements[82](index=82&type=chunk) [Revenue and Taxation](index=8&type=section&id=3.%20%E6%94%B6%E7%9B%8A%20%26%204.%20%E7%A8%85%E9%A0%85) All HKD 14.06 million in revenue this quarter came from integrated hospital services, with other income of HKD 0.31 million, and profits in China are subject to a 25% corporate income tax Revenue and Other Income (HKD thousands) | Revenue and Other Income | For the Three Months Ended June 30, 2022 | For the Three Months Ended June 30, 2021 | | :--- | :--- | :--- | | Provision of Integrated Hospital Services | 14,058 | 13,272 | | Total Other Income | 311 | 1,107 | - The Company has made a provision for corporate income tax at approximately **25%** for profits generated from providing integrated hospital services in China[86](index=86&type=chunk) [Loss Per Share and Dividends](index=9&type=section&id=5.%20%E6%AF%8F%E8%82%A1%E虧%E6%90%8D%20%26%206.%20%E8%82%A1%E6%81%AF) Basic and diluted loss per share improved to HKD 0.140 cents this quarter from HKD 0.310 cents last year, and the Board does not recommend any dividends Loss Per Share (HKD thousands, HK cents) | Item | For the Three Months Ended June 30, 2022 | For the Three Months Ended June 30, 2021 | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company | (3,954) | (8,740) | | Weighted Average Number of Ordinary Shares in Issue | 2,818,249,944 | 2,818,249,944 | | Basic Loss Per Share (HK cents) | (0.140) | (0.310) | - The Directors do not recommend the payment of a dividend for the three months ended June 30, 2022[91](index=91&type=chunk) Management Discussion and Analysis [Financial Review](index=10&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) Revenue from integrated hospital services grew by 5.92% despite fewer hospitals, while selling and administrative expenses significantly decreased due to a hospital disposal, leading to a narrowed loss attributable to owners - Revenue from one integrated hospital was approximately **HKD 14.06 million**, an increase of approximately **5.92%** compared to **HKD 13.27 million** from two hospitals in the same period last year[93](index=93&type=chunk) - The decrease in selling and distribution expenses and administrative expenses was primarily due to the disposal of Putian Edinburgh Friendly Hospital, decreasing by **66.73%** and **20.07%** year-on-year respectively[94](index=94&type=chunk) - Loss attributable to owners of the Company narrowed from **HKD 8.74 million** in the same period last year to **HKD 3.95 million** in the current period[95](index=95&type=chunk) [Business Review and Outlook](index=11&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%B1%95%E6%9C%9B) The Group operates one integrated hospital in Beijing and plans to shift its strategic focus from disease treatment to prevention, exploring new opportunities in the big health industry and seeking partnerships to enhance market position - The Group will strategically allocate resources to develop disease treatment and management, and explore new potential opportunities related to disease prevention, including upstream and downstream big health industries[98](index=98&type=chunk) - Management plans to allocate more resources to support the exploration of new opportunities, including potential collaborations with various business partners or market participants in the healthcare industry[100](index=100&type=chunk) [Significant Matters and Litigation](index=12&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E8%81%AF%E5%B1%AC%E5%85%AC%E5%8F%B8%20%26%20%E6%B6%89%E5%8F%8A%E4%B8%80%E5%AE%B6%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E8%A8%B4%E8%A8%9F) The Group had no significant acquisitions or disposals this quarter, but an indirect subsidiary faces a lawsuit demanding termination of a cooperation agreement, refund of RMB 12.13 million, and breach of contract compensation - For the three months ended June 30, 2022, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[101](index=101&type=chunk) - Indirect subsidiary Edinburgh Hospital Management is facing a civil lawsuit from China Merchants, demanding termination of the cooperation agreement, refund of approximately **RMB 12.13 million** in funds, and payment of related compensation[102](index=102&type=chunk) Other Disclosures [Directors' and Major Shareholders' Interests in Shares](index=13&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E4%B9%8B%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2022, Director Mr. Wu Zhilong held approximately 58.22% of the Company's interests, with Star Ocean Global Limited holding 56.13% and New Hope International (Hong Kong) Co., Limited holding 12.18% Directors' Interests in Shares | Director's Name | Nature of Interest | Number of Shares | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | | Mr. Wu Zhilong | Personal Interest | 59,000,000 | 2.09% | | | Corporate Interest | 1,581,959,460 | 56.13% | Major Shareholders' Interests in Shares | Name of Major Shareholder | Number of Shares | Capacity | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | | Star Ocean Global Limited | 1,581,959,460 | Beneficial Owner | 56.13% | | New Hope International (Hong Kong) Co., Limited | 343,217,539 | Beneficial Owner | 12.18% | [Share Options, Share Repurchases, and Competing Interests](index=17&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83%20%26%20%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%82%A1%E4%BB%BD%20%26%20%E8%91%A3%E4%BA%8B%E6%96%BC%E7%AB%B6%E7%88%AD%E6%A5%AD%E5%8B%99%E4%B9%8B%E6%AC%8A%E7%9B%8A) The Company's share option scheme expired in August 2021 with no activity, no share repurchases occurred this quarter, and directors confirmed no competing interests - The share option scheme expired on August 10, 2021, and no share options remained unexercised as of the end of the reporting period[123](index=123&type=chunk) - For the three months ended June 30, 2022, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[125](index=125&type=chunk) - As of June 30, 2022, none of the Directors or their respective associates held any business that competes or is likely to compete, directly or indirectly, with the Group's business[126](index=126&type=chunk) [Corporate Governance](index=19&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F%E5%AE%88%E5%89%87) During the reporting period, the Company complied with GEM Listing Rules' corporate governance code, having established Remuneration, Nomination, and Audit Committees, all with independent non-executive director majorities, and the Audit Committee reviewed the unaudited results - For the three months ended June 30, 2022, the Company complied with the code provisions of the Corporate Governance Code set out in Appendix 15 to the GEM Listing Rules[130](index=130&type=chunk) - The Company has established a Remuneration Committee, Nomination and Corporate Governance Committee, and Audit Committee, with their compositions meeting corporate governance requirements[131](index=131&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) - The Group's unaudited condensed consolidated results have been reviewed by the Audit Committee[136](index=136&type=chunk)

Company Overview - Good Fellow Healthcare Holdings Limited is incorporated in the Cayman Islands and listed on the GEM with stock code 8143[1]. - The registered office is located in Grand Cayman, while the principal place of business is in Hong Kong[7]. Corporate Governance - The audit committee is chaired by Jeanne Wong Ka Wai, indicating a focus on corporate governance[7]. - The company has adopted the Corporate Governance Code effective from April 1, 2012, to enhance shareholder value and accountability[108]. - The company complied with the applicable code provisions in the Corporate Governance Code for the year ended March 31, 2022[109]. - The Board consists of two executive Directors and three independent non-executive Directors, with nine full Board meetings held during the year ended March 31, 2022[118]. - The Board has established three committees: Audit Committee, Nomination and Corporate Governance Committee, and Remuneration Committee, to oversee specific aspects of the Company's affairs[126]. - The Company has arranged appropriate directors' liability insurance to indemnify directors for liabilities arising from corporate activities[126]. - The Board believes it is appropriately structured to provide sufficient checks and balances to protect the interests of the Group and shareholders[126]. - Independent non-executive Directors have confirmed their independence in accordance with GEM Listing Rules[128]. - The company has appointed non-executive directors for specific terms, subject to re-election, ensuring compliance with Code provision A.4.1[137]. - The company provides comprehensive induction and ongoing training for newly appointed directors to ensure understanding of operations and responsibilities under GEM Listing Rules[134]. Financial Performance - The financial summary section of the report provides insights into the company's performance metrics[3]. - The Group's revenue for the year ended 31 March 2022 was approximately HK$54.238 million, representing an increase of approximately 0.65% compared to HK$53.886 million in 2021[22]. - Gross profit for the year was approximately HK$26.660 million, an increase of approximately 0.81% from HK$26.447 million in 2021[18]. - The operating loss from operations was approximately HK$5.891 million, significantly improved from an operating loss of approximately HK$37.053 million in 2021[18]. - Net loss attributable to owners of the Company was approximately HK$12.689 million, down from a net loss of approximately HK$30.183 million in 2021[18]. - Other revenue for the year ended 31 March 2022 amounted to approximately HK$2.132 million, a decrease of approximately 52.06% compared to HK$4.437 million in 2021[32]. - Selling and distribution expenses for the year ended 31 March 2022 were approximately HK$20.902 million, representing a decrease of approximately 1.88% from HK$21.303 million in 2021[30]. - Administrative expenses for the year ended 31 March 2022 amounted to approximately HK$41.447 million, a decrease of approximately 12.68% compared to HK$47.466 million in 2021[31]. - Finance costs for the year ended 31 March 2022 were approximately HK$1.655 million, representing a decrease of approximately 29.57% from HK$2.350 million in 2021[31]. - The Group recorded a net loss from operations before taxation of approximately HK$7.546 million for the year ended 31 March 2022, a significant decrease from approximately HK$39.403 million in 2021[37]. Operational Developments - The Group operates two general hospitals in Putian and Beijing, maintaining the same number as in 2021[23]. - Management plans to diversify hospital services to meet various public needs, including treatments for common and special diseases[23]. - The Group continues to allocate resources to expand hospital services and explore business opportunities[23]. - The management envisions more diversified hospital services becoming available in the next few years[23]. - The Group's focus remains on providing general hospital services in the People's Republic of China[21]. - The Group will focus on chronic disease treatment and management, allocating more resources to explore new opportunities in the upcoming financial year[44]. Risk Management - The company has faced higher investment risks due to its small and mid-sized company status on the GEM, which may lead to greater market volatility[2]. - The management continues to focus on training medical staff and exploring new business approaches to optimize resources for better outcomes in the medical and financial sectors[39]. - The Group's risk exposure to currency fluctuations is considered minimal, as most transactions are denominated in Renminbi and Hong Kong dollars[48]. - The restructuring of central ministries in China may slow down hospital operations and management procedures, posing potential risks to marketing plans[85]. - Regional governance of hospitals varies by city, impacting operational standardization and consistency, which presents a significant management challenge[86]. Compliance and Internal Controls - The Group's internal control and risk management systems are designed to provide reasonable assurance against material misstatement or loss, with the Board satisfied with their effectiveness in 2022[189]. - The Group has established policies to ensure the reliability of financial reporting and compliance with applicable laws and regulations[194]. - The Audit Committee monitored the integrity of financial statements and compliance with statutory and listing requirements[155]. - The Board is responsible for establishing and maintaining effective risk management and internal control systems to achieve the Company's strategic objectives[190]. Events and Changes - The company has undergone changes in its executive team, with the resignation of the Chief Executive Officer on May 31, 2021[6]. - The disposal of the entire equity interest of Edin Hospital Management (Putian) Co., Ltd. was completed on 1 September 2021, resulting in the Target Group ceasing to be subsidiaries of the Company[62]. - Edinburgh International Hospital Management (Shenzhen) Co. Ltd. is involved in a civil complaint filed by China Merchants Hainan Development Investment Co. Ltd. on 9 March 2022[70]. - China Merchants is seeking to terminate a cooperation agreement with Edinburgh Hospital Management regarding the establishment of an international diabetes center in Hainan, involving a refund of approximately RMB 12.13 million[77]. - The company is also pursuing liquidated damages and costs related to the civil complaint amounting to approximately RMB 1.4 million[79]. - No significant events occurred after the end of the reporting period[82]. Human Resources - The Group had 137 full-time employees as of March 31, 2022, a decrease from 340 in 2021[53]. - For the year ended 31 March 2022, staff costs amounted to approximately HK$31.487 million, an increase of 6.8% from HK$29.485 million in 2021[57]. - The Group has adopted employee share option schemes to incentivize eligible employees, although there were no outstanding share options granted as of 31 March 2022[57].

Financial Performance - The total revenue for the nine months ended December 31, 2021, was approximately HKD 39,967,000, representing an increase of about 9.34% compared to HKD 36,554,000 for the same period in 2020[4] - The profit attributable to owners of the company for the nine months ended December 31, 2021, was HKD 2,729,000, a significant recovery from a loss of HKD 15,880,000 in the same period of 2020[4] - The gross profit for the nine months ended December 31, 2021, was HKD 33,558,000, compared to HKD 28,944,000 for the same period in 2020, indicating a positive growth trend[6] - The operating profit for the nine months ended December 31, 2021, was HKD 8,352,000, a turnaround from an operating loss of HKD 24,668,000 in the same period of 2020[6] - The total comprehensive income for the nine months ended December 31, 2021, was HKD 9,125,000, a recovery from a loss of HKD 22,750,000 in the same period of 2020[7] - The company recorded other income and gains of HKD 2,215,000 for the nine months ended December 31, 2021, compared to HKD 4,799,000 in the same period of 2020[6] Loss and Earnings Per Share - For the three months ended December 31, 2021, the company reported a loss attributable to owners of HKD 4,477,000, an improvement from a loss of HKD 6,879,000 in the same quarter of 2020[4] - The basic loss per share for the three months ended December 31, 2021, was HKD (0.159), an improvement from a loss of HKD (0.244) for the same period in 2020[22] - The basic earnings per share for the nine months ended December 31, 2021, was HKD 0.097, compared to a loss of HKD (0.056) for the same period in 2020[22] Revenue from Hospital Services - For the three months ended December 31, 2021, the revenue from comprehensive hospital services was HKD 13,603,000, a decrease of 2.95% compared to HKD 14,017,000 for the same period in 2020[19] - For the nine months ended December 31, 2021, the revenue from comprehensive hospital services was HKD 39,967,000, an increase of 9.93% compared to HKD 36,554,000 for the same period in 2020[19] Dividend Distribution - The company did not recommend the distribution of dividends for the nine months ended December 31, 2021, consistent with the previous year[4] - The group did not recommend any dividend for the nine months ended December 31, 2021, consistent with the previous year[38] Sale of Subsidiary - The company completed the sale of its subsidiary, resulting in a gain of HKD 31,683,000 from the transaction[29] - The net cash outflow from the sale of the target group was HKD 168,000[28] - The total net liabilities of the sold subsidiary amounted to HKD 33,477,000[30] Strategic Focus and Future Plans - The company’s financial performance reflects a strategic focus on enhancing hospital service offerings and optimizing operational efficiency[15] - The group plans to continue operating its existing business, including the Beijing hospital and developing an international diabetes center in Hainan, aiming to enhance healthcare services and explore new business opportunities[36] - The group aims to improve and expand China's existing healthcare infrastructure, driven by the increasing demand for quality and affordable healthcare services for the aging population[36] Shareholding and Corporate Governance - As of December 31, 2021, Mr. Wu Zhilong held a personal interest of 59,000,000 shares, representing approximately 2.09% of the total shares, and a company interest of 1,581,959,460 shares, representing approximately 56.13%[47] - As of December 31, 2021, major shareholders include Star Sun Global Limited with 1,581,959,460 shares, representing approximately 56.13% of issued shares[56] - Zheng Huixian holds 1,640,959,460 shares through spouse equity, accounting for about 58.22% of issued shares[56] - New Hope International (Hong Kong) Limited and its affiliates collectively own 343,217,539 shares, representing approximately 12.18% of issued shares[56] - The company has adopted a code of conduct for securities trading by directors, which complies with GEM Listing Rules[67] - The company has adhered to the corporate governance code as per GEM Listing Rules Appendix 15 during the nine months ending December 31, 2021[68] - The remuneration committee is responsible for determining the specific remuneration packages of all executive directors[70] Audit and Compliance - The unaudited consolidated performance for the review period has been reviewed by the Audit Committee, which believes the performance is prepared in accordance with applicable accounting standards and GEM listing rules[76] - The exchange rate used for converting RMB to HKD is 1.00 RMB to 1.226 HKD, for illustrative purposes only[76] - The Board of Directors consists of Executive Directors Mr. Wu Zhilong and Mr. Zheng Gang, and Independent Non-Executive Directors Ms. Huang Jiawei, Dr. Lin Xuanchen, and Mr. Liu Deji[76] Operational Expenses - Sales and distribution expenses increased to approximately HKD 13,130,000, up about 16.97% from HKD 11,225,000 in the previous year, attributed to the commencement of operations at the Putian Edinburgh Friendly Hospital[32] - The company did not purchase, sell, or redeem any of its listed securities during the review period[64] - No stock options were granted, exercised, canceled, or expired under the stock option plan as of December 31, 2021[62]