再生医学（regenerative medicine，RM），是指利用生命科学、工程学、计算机科学等多学科的理论和 方法，融合材料科学、细胞技术、组织工程技术、基因工程技术等多项现代生物工程技术，促进机体自 我修复与再生，或构建新的组织与器官，实现修复、替代和增强人体内受损、病变或有缺陷的组织和器 官的医学技术。 内容概要：再生医学（regenerative medicine，RM）是指利用生物学及工程学的理论方法，促进机体自 我修复与再生，或构建新的组织与器官，以修复、再生和替代受损的组织和器官的医学技术。近年来， 随着全球人口老龄化趋势的加快和慢性病、癌症等疾病的发病率上升，对先进医疗技术的需求不断增 长。而再生医学作为一种创新疗法，为这些疾病提供了新的治疗途径。因此，当前全球再生医学市场规 模正在持续扩张。数据显示，2024年全球再生医学市场规模已从2021年的200.4亿美元增长至358.2亿美 元。 相关上市企业：佰仁医疗（688198）；冠昊生物（300238）；正海生物（300653）；迈普医学 （301033）等 相关企业：诺一迈尔（苏州）医学科技有限公司；深圳华源再生医学公司；京东方再生医学 ...

Financial Performance - The Group recorded a revenue of approximately HK$90.62 million for the year ended 31 December 2024, representing an increase of approximately 30.41% from last year (2023: approximately HK$69.49 million) [35] - Gross profit increased by approximately 196.83% to approximately HK$57.65 million from last year (2023: approximately HK$19.42 million) due to improved cost efficiency [35] - The Group achieved a profit for the year of approximately HK$17.75 million, a turnaround from a loss of approximately HK$107.70 million in 2023 [36] - Total operating expenses for the year ended 31 December 2024 amounted to approximately HK$51.52 million, representing an increase of approximately 13.14% compared to last year (2023: approximately HK$45.54 million) [37] - As at 31 December 2024, the Group recorded net current liabilities of approximately HK$0.56 million, a shift from net current assets of approximately HK$20.79 million in 2023 [38] - Net assets increased to approximately HK$25.20 million as at 31 December 2024, up from approximately HK$11.79 million in 2023, primarily due to the profit for the year [38] - Cash and bank balances as at 31 December 2024 were approximately HK$22.70 million, significantly higher than HK$3.33 million in 2023 [39] Strategic Initiatives - The Group expanded its service portfolio to include comprehensive medical, aesthetic, and value-added healthcare solutions, enhancing its position in Hong Kong's premium healthcare sector [16] - A key initiative in 2024 involved medical-academic exchange programs, which generated sustainable revenue streams and deepened trust among high net-worth individuals [17] - The Board implemented three core strategies focused on attracting like-minded partners to foster a collaborative ecosystem in the medical industry [17] - The Group's strategy includes optimizing asset portfolios and enhancing operational efficiency to secure long-term growth [21] - Future prospects involve expanding business scope in the healthcare industry and reallocating resources to maintain leadership in healthcare products and services [31] Credit Risk and Expected Credit Loss - The reversal of expected credit loss on Other Receivables for the year ended 31 December 2024 amounts to approximately HK$12,290,000, compared to a provision of approximately HK$83,001,000 for the year ended 31 December 2023 [66] - The lifetime Probability of Default (PD) for Other Receivables under the 5-year repayment plan is 45.8%, with a Loss Given Default (LGD) of 61.2% [73] - For Other Receivables that are not overdue and not under the repayment plan, the lifetime PD is 1.2%, with an LGD of 61.7% [73] - The significant changes in the value of inputs for PD assessment from FY2023 to FY2024 are noted, indicating a shift in credit risk evaluation [79] - The Valuer utilized Moody's 2024 default rate research to determine PD and LGD, reflecting a comprehensive approach to credit risk assessment [75] - The ECL calculation follows the formula: ECL = Exposure at default x PD x LGD, as per HKFRS 9 [67] - The assessment of Other Receivables includes historical aging schedules and industry credit data to ensure reliable measurement of ECL [78] - Forward-looking adjustments in the ECL assessment were made using regression models based on macroeconomic indicators and historical market default data [75] - The significant reversal in expected credit loss indicates an improvement in the credit quality of Other Receivables [66] - The expected credit loss (ECL) rates for the fiscal year ending December 31, 2024, are projected to be significantly lower, with a lifetime probability of default (PD) of 1.2% for balances not overdue and not under a repayment plan, and 45.8% for balances under the repayment plan [81] Corporate Governance - The company is committed to maintaining high standards of corporate governance practices, which provide a solid foundation for management quality and accountability to shareholders [105] - The company has complied with all code provisions of the Corporate Governance Code throughout the reporting period, except for the deviation regarding the roles of chairman and chief executive officer being held by the same individual [106] - The board believes that having the same person serve as both chairman and CEO can enhance the execution of business strategies and operational effectiveness [106] - The company will continue to review its governance structure and appoint suitable candidates for the roles of chairman or CEO as necessary to ensure compliance with the Corporate Governance Code [106] - The company has established a framework to attract and retain high-quality management and promote sound internal control [105] - The board is dedicated to meeting the expectations of various stakeholders through transparency and accountability [105] - The company has a history of strong governance practices, which are essential for achieving its strategic objectives [105] - The board will keep reviewing its governance practices to align with the latest developments in corporate governance standards [106] Board Composition and Diversity - As of December 31, 2024, the Board consists of four Directors, including one executive Director and three independent non-executive Directors [116] - The Company has appointed five Directors during the Reporting Period, with one female Director among them [125] - Male employees account for 29.41% and female employees account for 70.59% of the Group's total workforce, indicating a gender ratio within a reasonable range [126] - The Board has established measurable objectives to implement the Board Diversity Policy, focusing on various diversity perspectives including gender, age, and professional experience [124] - The current composition of the Board includes core competencies in accounting, finance, business management, legal profession, and merger and acquisition, deemed appropriate for the Company's operations [129] Audit and Risk Management - The Audit Committee consists of independent non-executive directors, with at least one member possessing appropriate professional qualifications or financial management expertise [174] - The Audit Committee met twice during the Reporting Period to review and supervise the financial reporting process and internal control of the Group [184] - The Audit Committee reviewed the Group's consolidated financial statements for the six months ended June 30, 2024, and for the year ended December 31, 2024 [183] - All members of the Audit Committee are independent non-executive directors, ensuring unbiased oversight [178] - The Audit Committee has the authority to obtain independent professional advice and has full access to management for effective duty discharge [180] - The Audit Committee's responsibilities include reviewing compliance with accounting principles and GEM Listing Rules related to financial reporting [182]

Financial Performance - The company's revenue for the year ended December 31, 2024, was HKD 390.617 million, an increase of 12.3% compared to HKD 69.487 million in 2023[4] - Gross profit for the same period was HKD 57.654 million, significantly up from HKD 19.423 million, reflecting a gross margin improvement[4] - Operating profit for the year was HKD 18.884 million, a turnaround from an operating loss of HKD 106.720 million in the previous year[4] - The company reported a net profit attributable to shareholders of HKD 17.752 million, compared to a net loss of HKD 107.699 million in 2023[4] - The basic earnings per share improved to HKD 5.83 from a loss per share of HKD 37.60 in the previous year[4] - The group reported a segment profit of HKD 37,683,000 for the aesthetic medical and beauty services division in 2024, compared to a segment loss of HKD 90,366,000 in 2023[21] - The segment loss for medical services was HKD 3,471,000 in 2024, compared to a loss of HKD 2,633,000 in 2023, indicating a worsening performance[21] - The group achieved a net profit of approximately HKD 17,750,000, reversing a loss of about HKD 107,700,000 in the previous year[38] Assets and Liabilities - Total assets decreased to HKD 135.709 million from HKD 185.897 million in the previous year, indicating a reduction in asset base[6] - Total liabilities also decreased to HKD 110.512 million from HKD 174.104 million, showing improved financial leverage[6] - The group's total assets decreased from HKD 185,897,000 in 2023 to HKD 135,709,000 in 2024, a decline of approximately 27%[22] - The group’s total liabilities decreased from HKD 174,104,000 in 2023 to HKD 110,512,000 in 2024, a reduction of approximately 36.5%[22] - Current liabilities due within one year amount to approximately HKD 58,869,000, while cash and bank balances included in current assets are approximately HKD 22,702,000[9] - The group’s asset-liability ratio based on shareholder loans and total equity was 1.95 as of December 31, 2024, down from 2.99 in the previous year[42] Cash Flow and Funding - Cash and bank balances increased significantly from HKD 3,334,000 in 2023 to HKD 22,702,000 in 2024, reflecting a growth of about 581%[22] - The company is actively seeking additional funding through equity financing to support operational capital and repay existing debts[10] - The major shareholder, Mr. Wang Chuang, has confirmed financial support to the group until June 30, 2026, to meet due liabilities and continue operations without significant business reduction[10] - The group reported a foreign exchange loss of HKD 4.348 million, compared to a loss of HKD 0.424 million in the previous year, impacting overall comprehensive income[5] Operational Plans and Strategies - The company plans to focus on expanding its market presence and enhancing product development in the upcoming fiscal year[5] - The group plans to continue expanding its business in the healthcare sector and will reallocate resources as necessary to maintain its leading position in health products and services[37] Compliance and Governance - The independent auditor expressed a qualified opinion regarding the financial statements due to significant uncertainties affecting the group's ability to continue as a going concern[62] - The group has complied with all provisions of the corporate governance code, except for the separation of roles between the Chairman and the CEO, which are held by the same individual[53] - The audit committee, composed of all independent non-executive directors, reviewed the group's performance for the year ending December 31, 2024[54] - Directors confirm that the information in the announcement is accurate and complete, with no misleading or fraudulent elements[66] Accounting Policies and Standards - The group has adopted new and revised standards effective from January 1, 2024, but these have not significantly impacted the group's performance and financial position[12] - The group has not made significant changes to its major accounting policies or made retrospective adjustments due to the adoption of new standards[12] - The group expects no significant financial impact from the adoption of the new standards and is currently reviewing its accounting policy disclosures to ensure compliance[16] - The group plans to adopt the new Hong Kong Financial Reporting Standard No. 18 starting from January 1, 2027, which will require retrospective application for comparative information[16] Employee and Compensation - As of December 31, 2024, the total employee compensation (including director remuneration and retirement benefit plan contributions) was approximately HKD 16,580,000, an increase from HKD 15,990,000 in 2023[51] - The group had 34 employees in Hong Kong and mainland China as of December 31, 2024, down from 46 employees in 2023[51] Dividends and Shareholder Returns - The group did not propose any dividend payments for both years, maintaining a policy of no dividends[26] - The company did not recommend the distribution of any dividends for the year ending December 31, 2024[55] Miscellaneous - The group has not disclosed any specific plans for major investments or capital assets as of December 31, 2024[50] - There were no significant events after the reporting period[56] - The company did not engage in any purchases, sales, or redemptions of its listed securities during the year[52] - The announcement complies with GEM listing rules and aims to provide relevant information about the company[66] - The company will publish the notice of the annual general meeting on its website and the Stock Exchange website[63]

CRMI 中國再生醫學 CHINA REGENERATIVE MEDICINE INTERNATIONAL LIMITED 中國再生醫學國際有限公司 Stock Code 股份代號：8158 2024 INTERIM REPORT 中期報告 CHARACTERISTICS OF GEM ("GEM") OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE 香港聯合交易所有限公司（「聯交 所」）GEM（「GEM」）之特點 | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ...

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 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 之 任 何 損 失 承 擔 任 何 責 任。 China Regenerative Medicine International Limited 中國再生醫學國際有限公司 （於開曼群島註冊成立之有限公司） （股份代號：8158） 截止二零二四年六月三十日止六個月之 中期業績公佈 中 國 再 生 醫 學 國 際 有 限 公 司（「本公司」）董 事（「董 事」）會（「董事會」）謹 此 宣 佈 本 公 司 及 其 附 屬 公 司（統 稱「本集團」）截 止 二 零 二 四 年 六 月 三 十 日 止 六 個 月 之 未 經 審 核 簡 明 綜 合 中 期 業 績。本 公 告 列 載 本 公 司 二 零 二 四 年 中 期 報 告（「中期報告」） 之 全 文，並 符 合 香 港 聯 合 交 易 所 有 限 公 司GEM證 劵 上 市 規 則（「GE ...

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 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 之 任 何 損 失 承 擔 任 何 責 任。 China Regenerative Medicine International Limited 中國再生醫學國際有限公司 （於開曼群島註冊成立之有限公司） （股份代號：8158） 有 關 截至二零二三年十二月三十一日止年度二零二三年年報 的補充公告 茲 提 述 中 國 再 生 醫 學 國 際 有 限 公 司（「本公司」，連 同 其 附 屬 公 司 統 稱「本集團」） 截 至 二 零 二 三 年 十 二 月 三 十 一 日 止 年 度 的 年 報（「年 報」）。除 非 另 有 說 明，否 則 本 公 告 所 用 詞 彙 與 年 報 所 界 定 者 具 有 相 同 涵 義。 本 公 司 董 事（「董 事」）會（「董事會」）謹 此 就 年 報 內 的 以 下 事 項 補 充 以 下 資 料：(a ...

Business Development and Strategy - The Group's development plan for 2023 was prepared in anticipation of the resumption of cross-border travel[16] - The Group aims to attract more quality partners in the industry to share development dividends[17] - The Group aims to optimize asset portfolios and strategically cooperate with companies in Mainland China to enhance operational efficiency and profitability[21] - The Group plans to continuously assess market conditions and adjust business operations to meet evolving consumer demands[24] - The increase in revenue was primarily due to the reopening of borders leading to more customers from Mainland China visiting for aesthetic medical and beauty services[31] - The Group expressed appreciation for the contributions of management and employees, as well as the support from clients, suppliers, partners, shareholders, and investors[18] Financial Performance - The Group recorded a revenue of approximately HK$69.49 million for the year ended 31 December 2023, representing an increase of 67.29% from last year (2022: HK$41.54 million) [30] - Gross profit decreased by 48.37% to approximately HK$19.42 million from last year (2022: HK$37.62 million) [30] - The Group recorded a loss for the year ended 31 December 2023 of approximately HK$107.70 million, compared to a profit of HK$4.56 million in 2022 [30] - Total operating expenses for the year ended 31 December 2023 amounted to approximately HK$46.51 million, representing an increase of 74.88% compared to last year (2022: HK$26.60 million) [32] - As at 31 December 2023, the Group recorded net current assets of HK$20.79 million, down from HK$90.93 million in 2022[36] - The Group's cash and bank balances as at 31 December 2023 were approximately HK$3.33 million, an increase from HK$1.85 million in 2022[37] - The gearing ratio of the Group as at 31 December 2023 was 2.99, compared to 0.47 in 2022[39] Employee and Workforce Development - The total employee remuneration for the year was approximately HK$15.99 million, an increase from HK$11.06 million in 2022, with the number of employees rising to 46 from 23[63] - The company had a total of 46 employees as of December 31, 2023, compared to 23 employees in 2022, indicating a growth of 100% in workforce size[65] - Male employees account for 30.43% and female employees account for 69.57% of the Group's workforce, indicating a gender ratio within a reasonable range[115] Corporate Governance - The Company has complied with all code provisions of the Corporate Governance Code throughout the Reporting Period, except for the deviation where the roles of chairman and chief executive are held by the same individual[93] - The Board consists of five Directors as of December 31, 2023, including one executive Director, one non-executive Director, and three independent non-executive Directors[105] - The Board focuses on overall strategies and policies, particularly on the growth and financial performance of the Group[108] - The Company has adopted a Code of Ethics for its principal executive officer and senior financial officers, promoting honest and ethical conduct[99] - The Board is collectively responsible for promoting the success of the Company and its businesses by directing and supervising its affairs[100] Audit and Compliance - The Audit Committee held four meetings during the Reporting Period to review and supervise the financial reporting process and internal control of the Group[178] - All members of the Audit Committee are independent non-executive Directors, ensuring compliance with GEM Listing Rules[169] - The Audit Committee's principal functions include reviewing quarterly, interim, and annual consolidated financial statements, focusing on compliance with accounting principles and GEM Listing Rules[176] - The Audit Committee has the authority to investigate any matters under its duties and obtain independent professional advice[172] Strategic Initiatives and Market Expansion - The company has set a revenue guidance for the next fiscal year, projecting an increase of 10% to HK$215 million, driven by new product launches and market expansion strategies[91] - The company plans to enter new markets in Southeast Asia, aiming for a market share of 5% within the next two years[91] - A strategic acquisition of a local competitor is under consideration, which could potentially increase market penetration by 25%[91] Sustainability and Innovation - The company is committed to sustainability initiatives, with plans to reduce operational carbon emissions by 15% by 2025[91] - Research and development efforts have focused on enhancing sleep breathing monitoring products, with an investment of HK$30 million allocated for innovation in this area[91] Board Diversity and Structure - The Group appointed five Directors during the Reporting Period, with one female Director, reflecting a diverse composition in terms of gender, age, and professional experience[115] - The Board has established measurable objectives to implement the Board Diversity Policy, focusing on various diversity perspectives including gender, age, and professional experience[114] - The Nomination Committee aims to identify and nominate qualified individuals for Board vacancies as they arise[189]

Financial Performance - The company's revenue for the year ended December 31, 2023, was HKD 69,487,000, an increase from HKD 41,537,000 in 2022, representing a growth of 67.2%[5] - The gross profit for the year was HKD 19,423,000, down from HKD 37,623,000 in the previous year, indicating a decline of 48.3%[5] - The company reported a loss attributable to equity holders of HKD 107,699,000 for the year, compared to a profit of HKD 4,555,000 in 2022, marking a significant downturn[5] - The group reported a pre-tax loss of HKD 107,699,000 for 2023, compared to a pre-tax profit of HKD 8,267,000 in 2022, indicating a substantial decline in profitability[32] - The aesthetic medical segment generated revenue of HKD 61,179,000 in 2023, up from HKD 41,537,000 in 2022, reflecting a growth of 47.2%[32] - The group incurred a total segment loss of HKD 90,366,000 in 2023, compared to a profit of HKD 20,934,000 in 2022, marking a significant downturn[32] Assets and Liabilities - Total assets decreased to HKD 168,579,000 in 2023 from HKD 249,093,000 in 2022, a reduction of 32.3%[6] - The company's net current assets fell to HKD 20,789,000 in 2023, down from HKD 90,927,000 in 2022, a decline of 77.1%[6] - The company’s total equity decreased significantly to HKD 11,793,000 in 2023 from HKD 103,916,000 in 2022, a drop of 88.6%[6] - As of December 31, 2023, the group reported current liabilities due within one year of approximately HKD 147.79 million, with cash and bank balances of approximately HKD 3.33 million[51] - Current assets were approximately HKD 168.58 million, down from HKD 249.09 million in 2022, while current liabilities were approximately HKD 147.79 million, down from HKD 158.17 million in 2022, resulting in a current ratio of 1.14[58] Cash Flow and Financing - Cash and bank balances increased to HKD 3,334,000 in 2023 from HKD 1,849,000 in 2022, reflecting a growth of 80.0%[6] - The company plans to seek additional funding through equity financing and long-term debt to support its working capital and repay existing debts[17] - Major shareholders have agreed to provide financial support to the company, which is crucial for its operational continuity[11][17] - The board of directors has assessed cash flow forecasts for the next twelve months and believes that the company will have sufficient working capital to meet its operational and financial obligations[10][13] Impairment and Credit Losses - The company has incurred a significant expected credit loss of HKD 83,001,000 in the current year, compared to HKD 7,276,000 in the previous year[5] - The group recognized impairment losses on receivables of approximately HKD 83.00 million for the year, compared to HKD 7.27 million in the previous year[48] Corporate Governance and Compliance - The company has complied with all provisions of the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual[74] - The company will continue to review its governance structure and appoint suitable candidates for the roles of Chairman or CEO to ensure compliance with corporate governance standards[74] - The audit committee, composed of all independent non-executive directors, has reviewed the group's performance for the fiscal year ending December 31, 2023[75] Employee and Operational Metrics - As of December 31, 2023, the total employee compensation for the group was approximately HKD 15.99 million, an increase from HKD 11.06 million in 2022, reflecting a growth of 44.4%[72] - The group had a total of 46 employees as of December 31, 2023, compared to 23 employees in 2022, indicating a growth of 100% in workforce size[72] Strategic Focus and Future Plans - The company is focused on providing aesthetic medical beauty products and services, as well as medical products and services, indicating a strategic focus on these sectors[7] - The group aims to continue expanding its business scope in the healthcare industry and will reallocate resources to strengthen its leading position in health products and services[52] - The group plans to enhance and maintain its leading position in health products and services through timely resource reallocation[52] Shareholder Actions and Capital Management - The company does not recommend the distribution of any dividends for the fiscal year ending December 31, 2023[77] - The company plans to implement a share consolidation, merging every ten existing shares into one consolidated share, followed by a capital reduction[71] - Following the capital reduction, the par value of each consolidated share will be reduced from HKD 2.00 to HKD 0.20[71] - The group proposed a capital reorganization on July 14, 2023, involving the issuance of 18,823,530 shares at a subscription price of HKD 0.85 per share[69] Accounting Standards and Reporting - The adoption of new and revised Hong Kong Financial Reporting Standards has been implemented, which may affect the disclosure of accounting policies but not the financial position significantly[15][18] - The group plans to adopt the revised Hong Kong Financial Reporting Standards effective from January 1, 2024, which will not significantly impact the group's performance and financial position[20] - The group is committed to ensuring compliance with the revised accounting standards and has implemented necessary changes to its financial reporting practices[27]

Financial Performance - For the three months ended September 30, 2023, the revenue was HK$11,965,000, a decrease of 84.4% compared to HK$76,887,000 for the same period in 2022[9]. - The gross profit for the nine months ended September 30, 2023, was HK$37,991,000, representing an increase of 29.4% from HK$29,364,000 in the previous year[9]. - The net loss attributable to owners of the Company for the three months ended September 30, 2023, was HK$6,085,000, compared to a profit of HK$8,334,000 in the same period of 2022[9]. - The total comprehensive loss for the three months ended September 30, 2023, was HK$3,147,000, compared to a comprehensive income of HK$1,303,000 for the same period in 2022[11]. - The basic and diluted earnings per share for the nine months ended September 30, 2023, was 2.34 HK cents, down from 3.70 HK cents in the previous year[11]. - The company's profit for the nine months ended 30 September 2023 was HK$6,677,000, compared to HK$10,555,000 for the same period in 2022, representing a decrease of approximately 36.5%[13]. - Total comprehensive income for the period ended 30 September 2023 was HK$4,578,000, down from HK$10,555,000 in the previous year, indicating a decline of around 56.5%[13]. - Revenue for the nine months ended September 30, 2023, was HK$112,056,000, a decrease of 31.2% from HK$163,143,000 in the same period of 2022[28]. - Sales of goods increased to HK$13,484,000 in 2023 from HK$9,915,000 in 2022, representing a growth of 36.1%[28]. - Service income decreased significantly to HK$98,572,000 in 2023 from HK$153,228,000 in 2022, a decline of 35.7%[28]. Expenses and Costs - Selling and distribution expenses increased to HK$5,190,000 for the nine months ended September 30, 2023, compared to HK$2,573,000 in the previous year, reflecting a rise of 102.5%[9]. - Administrative and other expenses for the nine months ended September 30, 2023, were HK$27,785,000, an increase of 68.5% from HK$16,470,000 in the same period of 2022[9]. - Total operating expenses for the nine months ended 30 September 2023 amounted to approximately HK$33.73 million, an increase of 72.95% from HK$19.50 million in the same period last year[55][58]. - Interest on lease liabilities rose to HK$758,000 in 2023 compared to HK$461,000 in 2022, an increase of 64.5%[32]. - Depreciation for property, plant, and equipment increased to HK$421,000 in 2023 from HK$96,000 in 2022, a rise of 338.5%[35]. - Employee benefit expenses, including salaries and wages, were HK$9,321,000 in 2023, slightly up from HK$9,127,000 in 2022, an increase of 2.1%[35]. Shareholder Information - As of September 30, 2023, the Directors are not aware of any other parties with interests in the Company's shares that require disclosure[88]. - No rights to acquire shares or debentures were granted or exercised by Directors or their immediate family during the nine months ended September 30, 2023[89]. - None of the Directors or substantial shareholders had interests in businesses that compete with the Group during the nine months ended September 30, 2023[90]. - All Favour Holdings Limited holds 58,254,776 shares, representing approximately 20.41% of the issued share capital[77]. - Arab Osman Mohammed and Wong Kwok Keung each hold 58,342,276 shares, representing approximately 20.44% of the issued share capital[77]. - Li Ren holds 58,254,776 shares through a controlled corporation, representing approximately 20.41% of the issued share capital[78]. - China Orient Asset Management Co., Ltd holds 15,774,465 shares, representing approximately 5.53% of the issued share capital[78]. - Changzhou Yaoguang Enterprise Management Consulting Limited holds 26,240,000 shares, representing approximately 9.19% of the issued share capital[78]. - Wang Xiaogang is a beneficial owner of 14,945,000 shares, representing approximately 5.24% of the issued share capital[78]. Corporate Governance - The company has complied with all code provisions of the Corporate Governance Code during the nine months ended September 30, 2023, except for code provision C.2.1[113]. - The roles of chairman and chief executive officer are held by the same individual, Mr. Wang Chuang, which deviates from code provision C.2.1 of the Corporate Governance Code[114]. - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the nine months ended September 30, 2023[118]. - The company and its subsidiaries did not purchase, redeem, or sell any of the company's listed securities during the nine months ended September 30, 2023[120]. Capital Reorganization - On July 14, 2023, the company proposed a capital reorganisation, which includes the allotment and issuance of 18,823,530 subscription shares at a price of HK$0.85 per share[125]. - The subscription amount of approximately HK$16.0 million will be satisfied by capitalising a portion of shareholder's loans due to the subscriber[125]. - The company underwent two share consolidations, with the latest on September 6, 2023, consolidating every 10 shares of HK$0.20 into 1 share of HK$2.00[110]. - The adjusted exercise price and number of shares under the share option scheme were modified due to the share consolidations[109]. - Proposed share consolidation will convert every ten existing shares into one consolidated share[126]. - Proposed capital reduction will reduce the par value of each issued consolidated share from HK$2.00 to HK$0.20[126]. - Share consolidation took effect on September 6, 2023, while capital reduction is expected to take effect on or about December 7, 2023[127]. Strategic Initiatives - The Group aims to enhance its medical aesthetic and healthcare services to meet the increasing demand from mainland clients following the reopening of the border[48]. - The decrease in revenue was primarily due to a slowdown in the number of customers from the PRC visiting the center for health and beauty services in Q3 2023[54][57]. - The Group established a marketing team in July 2023 to enhance operational capabilities for market expansion and customer diversification[49][51]. - The Group has actively attracted quality business partners in the industry to share development dividends and replicate medical industry growth[50][51]. - The company continues to monitor market conditions for potential strategic acquisitions[107]. Share Option Scheme - A share option scheme was adopted on September 14, 2011, allowing the Company to grant options to eligible employees and other participants[95]. - The movement of share options under the scheme during the nine months ended September 30, 2023, is documented but specific numbers are not provided in the extracted content[96]. - The share option scheme aims to provide incentives for contributions to the Group and to attract high-caliber employees[95]. - The period of the share option scheme shall not exceed ten years from the date of adoption[95]. - The adjusted number of share options as of September 30, 2023, reflects a total of 330,200 options outstanding[98]. - No share options were exercised during the nine months ended September 30, 2023[101]. - The exercise price for the options granted to eligible persons is set at HK$0.45[100]. - The vesting schedule indicates that options granted to new employees who have joined the company for less than 12 months are not yet exercisable[99]. - The company has not cancelled or lapsed any share options during the reporting period[100]. - The movement of share options shows no reclassification of options during the nine months ended September 30, 2023[101]. - The outstanding options as of December 31, 2022, were adjusted following a share consolidation[98]. - The company continues to monitor the exercise period for all granted options[100]. - There are no new grants of share options reported for the period[99]. - The company maintains a focus on managing its share option plan effectively to align with its strategic goals[101].

Financial Performance - The company reported a significant increase in revenue, achieving a total of $XX million, representing a YY% growth compared to the previous period[11]. - Revenue for the three months ended June 30, 2023, increased to HK$46,039,000, representing a 34.2% growth compared to HK$34,340,000 in the same period of 2022[18]. - Gross profit for the six months ended June 30, 2023, rose to HK$30,487,000, up 134.5% from HK$13,005,000 in the corresponding period of 2022[18]. - Profit attributable to owners of the Company for the three months ended June 30, 2023, was HK$11,188,000, compared to HK$1,099,000 in the same period of 2022, marking a significant increase[18]. - For the six months ended June 30, 2023, the company reported a profit of HK$12,762,000, compared to HK$2,222,000 for the same period in 2022, representing a significant increase[27]. - Basic and diluted earnings per share for the six months ended June 30, 2023, were HK$0.447, up from HK$0.078 in the same period of 2022[20]. - The profit for the six months ended 30 June 2023 was approximately HK$12.76 million, compared to HK$2.22 million for the same period in 2022[91]. - The Group's profit before income tax for the six months ended June 30, 2023, included depreciation expenses of HK$5,432,000 for right-of-use assets, compared to HK$764,000 in 2022[56]. Cash Flow and Assets - The management emphasized the importance of maintaining a strong cash flow, reporting a cash position of $EE million, which supports future growth initiatives[11]. - Net cash generated from operating activities was HK$79,000, a recovery from a cash outflow of HK$10,114,000 in the previous year[30]. - The company experienced a net decrease in cash and cash equivalents of HK$1,973,000, compared to a decrease of HK$8,504,000 in the same period last year[30]. - Current assets increased to HK$260,069,000 as of June 30, 2023, compared to HK$249,093,000 as of December 31, 2022[22]. - Net current assets improved to HK$97,446,000 as of June 30, 2023, from HK$90,927,000 as of December 31, 2022[24]. - Total equity increased to HK$111,641,000 as of June 30, 2023, compared to HK$103,916,000 as of December 31, 2022[24]. - The Group's total assets amounted to approximately HK$111.64 million as of June 30, 2023, compared to HK$103.92 million as of December 31, 2022[95]. Strategic Outlook - The company provided a positive outlook for the next quarter, projecting revenue growth of BB% and an expected increase in user engagement metrics[11]. - New product launches are anticipated, including a breakthrough in regenerative medicine technology, which is expected to enhance market competitiveness[11]. - The company is exploring market expansion opportunities in Southeast Asia, aiming to increase its market share by CC% over the next year[11]. - Ongoing research and development efforts are focused on innovative therapies, with an investment of $DD million allocated for the upcoming fiscal year[11]. - The company is considering strategic acquisitions to bolster its product portfolio and enhance operational capabilities[11]. - The Group plans to optimize asset portfolios and focus on business segments that synergize with future development strategies to enhance operational efficiency and profitability[89]. Shareholder Information - The board of directors confirmed their commitment to shareholder value, with plans to implement a dividend policy in the upcoming fiscal year[11]. - No interim dividend was recommended for the six months ended June 30, 2023, consistent with the previous year[61]. - The Group did not recommend the payment of an interim dividend for the six months ended June 30, 2023, compared to no dividend in the same period of 2022[62]. - As of June 30, 2023, Wang Chuang holds a beneficial ownership of 550,520,000 shares, representing approximately 19.29% of the issued share capital[127]. - All Favour Holdings Limited is a beneficial owner of 582,547,765 shares, accounting for about 20.41% of the issued share capital[130]. - Arab Osman Mohammed and Wong Kwok Keung each hold 583,422,765 shares, which is approximately 20.44% of the issued share capital[130]. Corporate Governance - The company has complied with all code provisions of the Corporate Governance Code during the six months ended June 30, 2023, except for code provision C.2.1[170]. - The roles of chairman and chief executive officer are held by the same individual, which deviates from code provision C.2.1 of the Corporate Governance Code[171]. - The Audit Committee, comprising independent non-executive Directors, reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2023[175]. - All Directors confirmed full compliance with the Required Standard of Dealings throughout the six months ended June 30, 2023[176]. Employee Compensation - Key management personnel compensation for the six months ended June 30, 2023, was HK$1,015,000, up from HK$429,000 in 2022, an increase of 136.6%[80]. - The total employee remuneration for the six months ended June 30, 2023, was approximately HK$6.06 million, compared to approximately HK$5.81 million for the same period in 2022[119]. Share Options - A share option scheme was adopted on September 14, 2011, allowing directors to grant options to eligible employees and other participants[150]. - The movement of share options under the scheme during the six months ended June 30, 2023, is documented but specific figures are not provided[154]. - The company continues to focus on maintaining its share option program as part of its employee incentive strategy[158]. - The share options are structured to incentivize performance and align employee interests with shareholder value[158].