Financial Performance - The Group's revenue for Q1 2023 was approximately HK$54.1 million, an increase of 4% from HK$51.9 million in Q1 2022[9] - Cost of sales decreased by 5% to approximately HK$43.5 million from HK$45.9 million in the same period last year[10] - Gross profit increased by approximately 7% to HK$10.0 million, with gross profit margin rising from 12% to 19%[11] - Other income significantly decreased by 99% to approximately HK$2,000, down from HK$500,000 in Q1 2022[12] - Selling and distribution expenses rose by 181% to approximately HK$1.67 million compared to HK$0.60 million in the previous year[13] - Administrative and other expenses increased by approximately 74% to HK$7.0 million from HK$4.0 million in Q1 2022[20] - Profit before income tax from continuing operations was HK$1.57 million, a decrease from HK$1.88 million in the prior year[22] - Profit for the period from continuing operations was HK$1.57 million, compared to HK$1.12 million in Q1 2022[22] - For the three months ended March 31, 2023, the total comprehensive income was HK$2,843,000, an increase of 49.4% compared to HK$1,903,000 for the same period in 2022[23] - The exchange gain on translation of financial statements of foreign operations was HK$1,269,000, up from HK$781,000 in the previous year, representing a growth of 62.5%[23] - Earnings per share from continuing operations attributable to owners of the Company was HK$0.001, a decrease from HK$0.039 in the same period last year[23] - The accumulated losses as of March 31, 2023, were HK$3,285,425,000, compared to HK$3,290,432,000 as of March 31, 2022, indicating a reduction in accumulated losses[24] - The total equity attributable to owners of the Company at March 31, 2023, was HK$106,759,000, compared to HK$114,315,000 at March 31, 2022, reflecting a decrease of 6.6%[24] - The Company reported a profit for the period of HK$1,574,000 for the three months ended March 31, 2023, compared to HK$1,122,000 for the same period in 2022, marking an increase of 40.4%[24] Business Strategy and Operations - The increase in revenue was primarily attributed to the expansion of the sales network in the PRC[9] - The Group's strategy focuses on providing higher-margin services to clients, reflected in the changes in cost structures[10] - The Company is focused on providing healthcare products and services, with ongoing efforts in market expansion and product development[29] - For the three months ended March 31, 2023, the Group's revenue from healthcare products and services was HK$54,052,000, an increase of 4.4% compared to HK$51,916,000 in the same period of 2022[45] - The reportable segment profit for the same period was HK$1,574,000, representing a 40.4% increase from HK$1,122,000 in 2022[45] - Total reportable segments' gain increased significantly to HK$5,843,000 from HK$1,928,000 year-over-year[48] - Unallocated corporate expenses for the period were HK$3,982,000, with no comparable figure reported for the previous year[48] Expenses and Costs - Finance costs rose to HK$287,000 in Q1 2023 from HK$49,000 in Q1 2022, indicating a substantial increase[55] - Advertising and marketing expenses increased significantly to HK$504,000 in Q1 2023 from HK$164,000 in Q1 2022, reflecting a growth of 207.3%[64] - The Group's profit before income tax for the period was HK$1,574,000, a decrease from HK$1,879,000 in Q1 2022[48] - The Group did not incur any income tax expenses for the period, compared to HK$757,000 in Q1 2022[59] Shareholder Information - Wang Chuang held a beneficial interest of 550,520,000 shares, representing approximately 19.29% of the issued share capital[87] - All Favour Holdings Limited held 582,547,765 shares, accounting for approximately 20.41% of the issued share capital[92] - Arab Osman Mohammed and Wong Kwok Keung each held 583,422,765 shares, representing approximately 20.44% of the issued share capital[92] - China Orient Asset Management Co., Ltd. held 157,744,659 shares, which is about 5.57% of the issued share capital[93] - Mr. Dai was granted 17,500,000 share options, which were adjusted to 875,000 Shares at an exercise price of HK$9.00 per Share after a share consolidation[96] - Mr. Dai holds an aggregate of 583,422,765 Shares, representing approximately 20.44% of the issued share capital of the Company[96] - Mr. Li personally owns 21,380,000 Shares, leading to a total deemed interest of 603,927,765 Shares, approximately 21.16% of the issued share capital[97] Corporate Governance - The company has complied with all code provisions of the Corporate Governance Code, except for code provision C.2.1, which requires the roles of chairman and chief executive to be separate[126] - Mr. Wang Chuang serves as both chairman and chief executive officer, which deviates from code provision C.2.1, but the board believes this structure enhances business strategy execution and operational efficiency[127] - The audit committee, composed entirely of independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the period[131] - The unaudited financial statements have been prepared in accordance with applicable accounting standards and GEM Listing Rules[132] - The board will continue to review its structure and appoint suitable candidates to ensure compliance with the Corporate Governance Code[127] Share Options - The Share Option Scheme was adopted on 14 September 2011 and was valid for ten years until 13 September 2021[106] - No share options have lapsed, been granted, exercised, or cancelled under the Share Option Scheme during the reporting period[106] - The movement of share options during the year ended March 31, 2023, included 3,302,000 options outstanding as of March 31, 2023, with an exercise price of HK$0.45[112] - The outstanding share options as of December 31, 2022, were also 3,302,000, indicating no change in the total number of options[113] - The company has not reported any exercised options during the year, indicating a potential area for future employee engagement strategies[121] - The share options are structured to incentivize long-term commitment from employees, with multiple exercise periods extending to 2025[119] Market Conditions - The number of business travelers and tourists visiting Hong Kong has been increasing since January 2023, indicating a recovery in the Hong Kong economy[68] - There were no indications of market expansion or mergers and acquisitions in the recent financial disclosures[115] Miscellaneous - The Company does not recommend the payment of dividends for the period, consistent with the previous year[60] - There were no material acquisitions or disposals of subsidiaries during the period[73] - The company has not reported any new product launches or technological advancements during this reporting period[115] - The report will remain available on the Stock Exchange's website for at least seven days from the publication date[141]

Business Operations and Performance - In 2022, the Group's surgery and Day Procedure Centre officially opened in November, enhancing the range of medical and healthcare services offered to customers[17] - The Group faced continuous challenges from the COVID-19 pandemic in the first half of 2022, yet its development plan remained on track[17] - The annual results for the year ended December 31, 2022, were presented to shareholders, indicating ongoing operational activities despite external challenges[16] - The Group's commitment to comprehensive medical services reflects its strategic focus on customer care and service expansion[17] - The Group's operational resilience during the pandemic highlights its strategic planning and adaptability in a volatile market[17] - The Group's healthcare products and services segment saw substantial improvement starting from Q3 2022 due to the easing of the COVID-19 pandemic, despite challenges in the first half of the year[27] - The Group has focused on expanding its business dimensions by establishing a day surgery and medical centre during the pandemic[27] - The healthcare products and services segment is expected to expand, with plans to open more centers and cooperate with hospitals and sanatoriums despite market uncertainties[42] - The Group aims to enhance its market share and client base in the healthcare sector, leveraging social media for promotion and sourcing advanced treatment devices[39][41] - The Group's performance was impacted by COVID-19 measures, but there has been a recovery in customer visits to health and beauty services in Hong Kong and China post-lockdown[40][41] Financial Performance - The Group recorded a revenue of approximately HK$231.6 million for the year ended December 31, 2022, representing an 18% decrease from HK$282.9 million in 2021[47] - Gross profit decreased by 44% to approximately HK$37.62 million, with a gross profit margin dropping from 24% in 2021 to 16% in 2022[47] - The profit attributable to owners of the Company for the year was approximately HK$4.555 million, down from HK$13.3 million in the previous year, resulting in earnings per share of HK$0.002 compared to HK$0.02 in 2021[48] - Total operating expenses for the year amounted to approximately HK$25.817 million, a 54% decrease from HK$47.4 million in 2021[49] - As of December 31, 2022, the Group had net current assets of HK$90.927 million, down from HK$111.1 million in 2021, while net assets increased to HK$158.1 million from HK$147.0 million[54] - The Group's cash and bank balances as of December 31, 2022, were approximately HK$1.85 million, a decrease from HK$9.90 million in 2021[55] - The working capital ratio as of December 31, 2022, was 1.58, down from 1.75 in 2021, with a gearing ratio of 0.46 compared to 0.36 in the previous year[56] - Current assets were approximately HK$249,093,000 as of December 31, 2022, compared to HK$258,400,000 in 2021, while current liabilities were approximately HK$158,166,000, up from HK$147,300,000 in 2021, resulting in a current ratio of 1.58, down from 1.75 in 2021[61] - The Group's debt-to-equity ratio as of December 31, 2022, was 0.46, an increase from 0.36 in 2021[61] Corporate Governance - The Directors confirm that the information in the report is accurate and complete, ensuring transparency for investors[6] - The Company has undergone changes in its corporate governance, including the appointment of a new company secretary in September 2022[9] - The company has been expanding its board with independent non-executive directors to enhance governance and oversight[92] - 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[99] - The board believes that having the same person serve as both chairman and chief executive officer can enhance the execution of the group's business strategies and operational efficiency[99] - The board is collectively responsible for promoting the success of the company and its businesses by directing and supervising the company's affairs[106] - The company has established a framework for ethical standards to promote high levels of professional conduct among all employees and directors[105] - The board is committed to maintaining high standards of corporate governance practices to enhance accountability and transparency to shareholders[98] - The company will continue to review its governance structure to ensure compliance with the Corporate Governance Code and align with the latest developments[99] - The Company Secretary is tasked with updating the Board on governance and regulatory matters[127] Management and Strategy - The Company aims to provide more value-added services to meet diverse customer needs[17] - The Group has implemented measures to optimize asset portfolios and improve operational efficiency, aiming to significantly enhance profitability[26] - Strategic cooperation with companies in Mainland China has been initiated to complement resources and improve service levels, targeting sustainable growth[26] - The Company plans to build a regenerative medical health management ecosystem to improve service capabilities and quality in the upcoming year[19] - The Board will continuously evaluate the business environment and existing income streams to enhance profitability post-pandemic[28] - The Company aims to attract more quality partners in the industry to share development dividends and replicate successful business models[20] - The management structure has been optimized by introducing influential talents to enhance the Company's competitiveness[26] Board Composition and Diversity - As of December 31, 2022, the Board consisted of five Directors: one executive, one non-executive, and three independent non-executive Directors[111] - The Group's employee gender ratio is 9.0% male and 91.0% female, which the Group considers to be within a reasonable range[119] - The Board has established measurable objectives to implement its Board Diversity Policy, focusing on various diversity perspectives including gender, age, and professional experience[118] - The Board regularly reviews the contribution of each Director to ensure they are dedicating sufficient time to their responsibilities[123] - All Directors participated in continuous professional development during the Reporting Period, ensuring their contributions remain informed and relevant[132] Audit and Compliance - The Audit Committee consists of independent non-executive Directors, ensuring compliance with GEM Listing Rules and enhancing corporate governance[175] - The Audit Committee's responsibilities include reviewing significant adjustments resulting from audits and ensuring compliance with accounting principles and GEM Listing Rules[182] - The Audit Committee met once with the external auditor during the Reporting Period without management present, ensuring independent oversight[179] - The Audit Committee held 4 meetings during the reporting period to review and supervise the financial reporting process and internal control of the Group[184] - The attendance of the Audit Committee members at the meetings was 100%, with all three members attending all 4 meetings[186] - The Company has established a proper corporate governance structure with three subcommittees: Audit, Nomination, and Remuneration Committees[171] - The Nomination Committee is responsible for assessing the effectiveness of the Board and making recommendations for changes to complement the Company's corporate strategy[194] - The majority of the members of the Remuneration Committee are independent non-executive Directors[198] - The Company has received annual confirmations of independence from all independent non-executive Directors, affirming their impartiality[165] - The Company is committed to reviewing and monitoring compliance with legal and regulatory requirements as part of its governance practices[174]

Financial Performance - The Group's revenue from continuing operations for the nine months ended September 30, 2022, was approximately HK$163.1 million, a decrease of approximately HK$36.8 million or 18.40% compared to HK$199.9 million for the same period last year[6]. - Cost of sales for the Group from continuing operations was approximately HK$133.8 million, representing a decrease of approximately 19.88% from HK$167.0 million for the same period last year[6]. - The Group recorded a gross profit of approximately HK$29.4 million, a decrease of approximately 10.64% compared to HK$32.9 million in the prior period, with a gross profit margin increasing from approximately 16.46% to 17.99%[6]. - For the nine months ended September 30, 2022, the revenue was HK$163,143,000, a decrease of 18.5% from HK$199,976,000 in the same period of 2021[10]. - The profit for the nine months from continuing operations was HK$10,555,000, compared to HK$31,483,000 in the previous year, reflecting a decline of 66.5%[12]. - Profit before income tax for the nine months ended 30 September 2022 was HK$6,973,000, a decrease from HK$11,169,000 in 2021, representing a decline of approximately 37.8%[49]. - Total income tax expenses for the nine months ended September 30, 2022 were HK$3,690,000, compared to HK$4,329,000 in 2021, reflecting a decrease of approximately 14.8%[52]. - Basic profit per share from continuing operations for the nine months ended 30 September 2022 was HK$0.370, down from HK$1.103 in 2021, a decline of approximately 66.5%[59]. Expenses and Income - Other income decreased by approximately 18.52%, from approximately HK$5.4 million to approximately HK$4.4 million, primarily due to COVID-19 related rent concessions and government grants[8]. - Selling expenses decreased by approximately 18.75%, from approximately HK$3.2 million to approximately HK$2.6 million, attributed to tightened COVID-19 control measures[8]. - Administrative expenses decreased significantly by approximately 58.75%, from approximately HK$40.0 million to approximately HK$16.5 million, due to similar reasons affecting selling expenses[8]. - The Group's finance costs for the nine months ended September 30, 2022, totaled HK$461,000, a reduction from HK$651,000 in 2021, indicating a decrease of 29.2%[46]. - The total comprehensive income for the nine months ended September 30, 2022, was a loss of HK$670,000[22]. Shareholder Information - As of September 30, 2022, Mr. Wang Chuang holds a beneficial interest of 550,520,000 shares, representing approximately 19.29% of the issued share capital[75]. - All Favour Holdings Limited holds 582,547,765 shares, representing approximately 20.41% of the issued share capital[82]. - Arab Osman Mohammed and Wong Kwok Keung each hold 583,422,765 shares, accounting for about 20.44% of the issued share capital[82]. - Li Ren personally owns 21,380,000 shares, which translates to approximately 0.75% of the issued share capital[82]. - China Orient Asset Management Co., Ltd holds 157,744,659 shares, representing 5.57% of the issued share capital[82]. - Changzhou Yaoguang Enterprise holds 262,400,000 shares, accounting for approximately 9.19% of the issued share capital[84]. - Wang Xiaogang is a beneficial owner of 149,450,000 shares, which is about 5.24% of the issued share capital[84]. - Mr. Dai, through his interests, is deemed to hold an aggregate of 583,422,765 shares, representing approximately 20.44% of the issued share capital[87]. - Mr. Li is deemed to be interested in a total of 603,927,765 shares, which is approximately 21.16% of the issued share capital[88]. Operational Insights - The Group has been closed for more than 240 working days due to government regulations and restrictions, yet it continues to demonstrate strong resilience and vitality in a challenging operating environment[67]. - In Q3 2022, the overall business dynamics improved with the relaxation of quarantine policies, showcasing significant competitiveness and commercial potential[67]. - The Group aims to expand its business scope in the medical industries and will reallocate resources to maintain its leading position in healthcare[67]. - Efforts will be made to improve operational performance and financial position, with continuous evaluation of the business environment and income streams[67]. - The Group plans to enhance working capital and cash flows by closely monitoring administrative expenses and operating costs, while also seeking potential customers[67]. Share Options and Compensation - The share option scheme adopted on September 14, 2011, was valid for ten years until September 13, 2021[97]. - The movement of share options under the adjusted scheme during the nine months ended September 30, 2022, is documented but not detailed in the provided content[99]. - The report highlights that 3,905,200 share options were granted to eligible persons, with a vesting schedule that allows for up to 20% to be exercised in specified periods[184]. - The report emphasizes the importance of the share options as part of the company's compensation strategy for retaining talent and incentivizing performance[126]. - The total number of outstanding share options reflects the company's commitment to aligning employee interests with shareholder value[111]. Future Outlook - The company is focusing on expanding its market presence and enhancing its product offerings through new technology[199]. - Future guidance includes a strategic emphasis on regenerative medicine advancements[199]. - The company is exploring potential mergers and acquisitions to bolster its market position[199]. - User data and performance metrics will be closely monitored to inform future strategies[199]. - The company aims to enhance shareholder value through effective management of share options and strategic initiatives[199].

Financial Performance - The company reported a significant increase in revenue, achieving a total of $X million, representing a Y% growth compared to the previous period[4] - For the six months ended June 30, 2022, the Group reported revenue of HK$74,322,000, a decrease of 35.7% compared to HK$115,302,000 for the same period in 2021[20] - Revenue from continuing operations for the six months ended June 30, 2022, was HK$86,256,000, a decrease of 25.2% from HK$115,302,000 in 2021[51] - Total comprehensive income for the period was a loss of HK$1,971,000 for the six months ended June 30, 2022, compared to a total comprehensive income of HK$26,495,000 in the prior year[22] - Total comprehensive income for the three months ended June 30, 2022, was a loss of HK$3,875,000, compared to a profit of HK$22,907,000 in the same period of 2021, representing a decline of 117%[24] - The Group's profit for the period from continuing operations was HK$2,222,000 for the six months ended June 30, 2022, down 92.1% from HK$27,988,000 in the same period of 2021[20] - The Group's total reportable segments' gain was HK$3,808,000, down from HK$29,745,000 in 2021, a decrease of 87.2%[53] Cost Management - Cost management strategies have improved operational efficiency, resulting in a reduction of H% in overall expenses[4] - Selling expenses for the six months ended June 30, 2022, were HK$9,225,000, an increase of 12.5% from HK$8,200,000 in the same period of 2021[20] - Administrative expenses for the six months ended June 30, 2022, amounted to HK$34,883,000, a decrease of 1.5% compared to HK$35,400,000 in the previous year[20] - Selling expenses decreased by approximately 11.24%, from approximately HK$1.79 million for the six months ended 30 June 2021 to approximately HK$1.59 million for the Period[103] - Administrative expenses decreased by approximately 73.55%, from approximately HK$34.9 million for the six months ended 30 June 2021 to approximately HK$9.2 million for the Period[103] Market Expansion and Strategy - The company provided a positive outlook for the next quarter, projecting revenue growth of B% driven by new product launches and market expansion strategies[4] - The company is planning to expand its market presence in D regions, aiming for a market share increase of E%[4] - A strategic acquisition was announced, expected to enhance the company's capabilities and contribute an additional F million in revenue annually[4] - The Group is focusing on building a regenerative medicine health management ecosystem to improve service capabilities and quality[99] - Strategic cooperation with designated service providers in the PRC aims to enhance service levels and achieve sustainable growth[99] - The Group plans to attract quality partners in the industry to promote large-scale replication and development[99] Research and Development - Investment in R&D for new technologies has increased by C%, focusing on innovative regenerative medicine solutions[4] Cash Flow and Assets - The Group's cash flow from operating activities for the six months ended June 30, 2022, was not disclosed in the provided data[20] - Current assets as of June 30, 2022, totaled HK$259,204,000, slightly up from HK$258,388,000 as of December 31, 2021, indicating a marginal increase of 0.3%[26] - Net current assets decreased to HK$101,376,000 as of June 30, 2022, from HK$111,075,000 as of December 31, 2021, a decline of 8.7%[28] - The company reported total liabilities of HK$157,828,000 as of June 30, 2022, up from HK$147,313,000 as of December 31, 2021, reflecting an increase of 7.9%[28] - The company’s cash and bank balances increased to HK$255,617,000 as of June 30, 2022, from HK$247,867,000 as of December 31, 2021, an increase of 3.5%[26] Share Options and Employee Incentives - The company reported a significant increase in share options granted, with a total of 3,905,200 options outstanding as of June 30, 2022[146] - The exercise price of the share options is set at HK$0.291, with a vesting schedule that includes multiple periods for exercising options[147] - The company has outlined a structured approach to share options, with up to 20% of options available for exercise during specified periods, indicating a strategic incentive plan for employees[149] - The report highlights the movement of share options during the six months ended June 30, 2022, reflecting active management of employee incentives[150] - The company is focused on ensuring that options granted are aligned with performance metrics, enhancing employee engagement and retention[149] Financial Reporting and Compliance - The interim financial report was prepared in accordance with HKAS 34, and no significant issues were identified during the review[16] - The Group's financial statements are prepared in accordance with Hong Kong Financial Reporting Standards (HKFRSs) and applicable disclosure requirements of the GEM Listing Rules[41] - The interim financial statements for the period ended June 30, 2022, were reviewed by McM (HK) CPA Limited, with an unmodified review report included in the interim report[110] Shareholder Information - Wang Chuang holds a beneficial ownership of 538,670,000 shares, representing 18.87% of the issued share capital[112] - All Favour Holdings Limited has a long position of 582,547,765 shares, accounting for approximately 20.41% of the issued share capital[119] - China Orient Asset Management Co., Ltd holds 157,744,659 shares, which is approximately 5.57% of the issued share capital[119] - The Group maintained 24 employees as of June 30, 2022, consistent with the previous year[110] Other Financial Metrics - The Group recorded an exchange loss on translation of financial statements of foreign operations of HK$4,193,000 for the six months ended June 30, 2022[22] - The Group's income tax expense for the current period was HK$1,416,000, compared to HK$1,227,000 in 2021, reflecting an increase of 15.4%[66] - The Group's total finance costs decreased to HK$170,000 in 2022 from HK$530,000 in 2021, a reduction of 67.9%[60]

Financial Performance - The Group's revenue for the three months ended March 31, 2022, was approximately HK$51.9 million, representing an increase of approximately HK$10.9 million, or 26.69%, compared to approximately HK$41.0 million for the same period last year[4]. - Cost of sales increased by approximately 51.37% from approximately HK$30.3 million to approximately HK$45.9 million, in line with the increase in revenue from the healthcare products and services segment[5]. - The Group recorded a gross profit of approximately HK$6.0 million, a decrease of approximately 43.63% compared to approximately HK$10.6 million in the prior period, with a gross profit margin decreasing from 25.98% to 11.56%[5]. - Other income for the period was approximately HK$0.5 million, mainly representing COVID-19 related rent concessions[5]. - Selling and distribution expenses remained constant at approximately HK$0.6 million for both periods due to cost control measures[5]. - Administrative and other expenses decreased by approximately 49.32%, from approximately HK$7.9 million to approximately HK$4.0 million, primarily due to continued cost-cutting efforts[5]. - Profit before income tax from continuing operations was approximately HK$1.9 million, compared to approximately HK$4.9 million in the prior period[7]. - The profit for the period from continuing operations was approximately HK$1.1 million, a decrease from approximately HK$3.7 million in the prior period[7]. - Total comprehensive income for the period was HK$1,903,000, a decrease from HK$3,744,000 in the previous year[11]. - Earnings per share from continuing operations attributable to owners of the Company was HK$0.039, down from HK$0.129 in the prior year[11]. - The Group's profit before income tax for the period was HK$1,879,000, down from HK$4,916,000 in the prior year, a decrease of 61.8%[27]. - Total finance costs decreased to HK$49,000 in Q1 2022 from HK$374,000 in Q1 2021, reflecting a reduction of 86.9%[36]. - Other income for the period was HK$500,000, down from HK$3,096,000 in the previous year, a decrease of 83.8%[31]. - The Group's total income tax expense for the period was HK$757,000, compared to HK$1,222,000 in the same period last year, a decrease of 38.0%[41]. Revenue Growth - The increase in revenue was primarily attributed to the healthcare products and services segment[4]. - For the three months ended March 31, 2022, the Group reported revenue from contracts with customers of HK$51,916,000, an increase from HK$40,980,000 in the same period of 2021, representing a growth of approximately 26.5%[25]. - The increase in revenue is attributed to enhanced sales strategies and market demand for healthcare products[25]. - The Group's healthcare products and services segment continues to be the primary focus, with ongoing production and sales activities[24]. - The Company experienced a significant improvement in profit compared to the previous year, indicating a recovery in operations[9]. Shareholder Information - Wang Chuang holds 538,670,000 shares, representing approximately 18.87% of the issued share capital[63]. - All Favour Holdings Limited is the beneficial owner of 582,547,765 shares, accounting for 20.41% of the issued share capital[66]. - Deng Shufen has an interest in 583,422,765 shares, which is about 20.44% of the issued share capital[66]. - China Orient Asset Management Co., Ltd holds 157,744,659 shares, representing 5.57% of the issued share capital[66]. - Changzhou Yaoguang Enterprise Management Consulting Limited holds 262,400,000 shares, which is 9.19% of the issued share capital[66]. - Kong Yu Dong has a long position of 160,600,000 shares, accounting for 5.63% of the issued share capital[75]. - Wang Xiaogang is a beneficial owner of 149,450,000 shares, representing 5.24% of the issued share capital[77]. - The total long positions of major shareholders indicate a concentrated ownership structure within the company[65]. - The shareholding structure reflects significant interests held by a few key individuals and entities, indicating potential influence over corporate decisions[80]. Corporate Governance - The company has complied with all code provisions of the Corporate Governance Code throughout the period, except for code provision C.2.1, which requires separation of the roles of chairman and chief executive officer[112]. - The audit committee consists of three independent non-executive directors, and the unaudited condensed consolidated financial statements for the period have been reviewed by the committee[112]. - The company's board is structured with a balance of power, comprising one executive director, one non-executive director, and three independent non-executive directors[112]. - The chairman and chief executive officer of the company is Mr. Wang Chuang, who holds both positions[112]. Strategic Initiatives - The Company aims to optimize its management structure and introduce influential talents to enhance competitiveness[56]. - The Company plans to optimize its asset portfolio and dispose of non-aligned business segments to improve operational efficiency and profitability[56]. - The Group continues to explore opportunities for market expansion and potential new product development in the healthcare sector[24]. - The company is focused on maintaining a robust financial structure while exploring opportunities for market expansion[106]. - The management emphasized the importance of aligning employee incentives with company performance through share options[107]. - The company aims to expand its market presence through strategic initiatives, including potential mergers and acquisitions[104]. Market Conditions and Future Outlook - The company is closely monitoring the impact of COVID-19 on its financial performance for the three months ended March 31, 2022[113]. - Future guidance remains cautious, reflecting ongoing market uncertainties and potential impacts on performance[97]. - The company expects a revenue growth forecast of 20% for the full year 2022, driven by increased demand for its services[115]. - The company is exploring potential acquisitions to bolster its technology capabilities in the regenerative medicine sector[115]. - Future product launches are anticipated to include at least three new regenerative therapies by Q4 2022[115].

Financial Performance - The company reported a significant increase in revenue, achieving a total of $XX million, representing a YY% growth compared to the previous year[12]. - The Group recorded a revenue of approximately HK$282.9 million for the year ended 31 December 2021, representing an increase of 55% from HK$182.1 million in 2020[46]. - Gross profit increased by 62% to approximately HK$67.7 million from HK$41.8 million in the previous year, with a gross profit margin rising from 23% to 24%[46]. - The Group achieved a profit of approximately HK$13.3 million for the year ended 31 December 2021, a turnaround from a loss of HK$438.8 million in 2020[46]. - The increase in revenue was primarily due to the growth in the healthcare products and services segment, attributed to the expansion of the sales network in the PRC[47]. - The healthcare products and services segment recorded a growth of 55% in revenue for the year ended 31 December 2021, driven by the establishment of a selling membership in the PRC[39]. User Engagement and Growth - User data showed an increase in active users, reaching ZZ million, which is a growth of AA% year-over-year[12]. - The company reported a significant increase in user data, with a growth rate of 25% year-over-year in active users[77]. - The company is focusing on enhancing customer engagement through digital platforms, aiming for a HH% increase in user interaction[12]. Future Outlook and Strategic Initiatives - The company has outlined its future outlook, projecting a revenue growth of BB% for the upcoming fiscal year[12]. - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[78]. - New product development initiatives are underway, with plans to launch CC new products in the next quarter[12]. - A new product line is expected to launch in Q3 2024, projected to contribute an additional $2 million in revenue[82]. - The company is expanding its market presence, targeting DD new regions for growth in the next year[12]. - Market expansion efforts include entering two new regions, aiming for a 10% market share within the first year of operation[80]. - Strategic acquisitions are being considered to enhance the company's capabilities and market share[12]. - The company is considering strategic acquisitions to enhance its service offerings, with a target of identifying at least three potential candidates by Q2 2024[81]. Operational Efficiency and Cost Management - Operational efficiency improvements are expected to reduce costs by FF% in the next fiscal year[12]. - The Company aims to improve profitability and cash flows by closely monitoring administrative expenses and operating costs[25]. - The management team emphasized a commitment to sustainability, aiming to reduce operational costs by 20% through eco-friendly practices[84]. Corporate Governance - The company has complied with all code provisions of the Corporate Governance Code throughout the Reporting Period, except for code provision C.2.1[89]. - 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[90]. - The Board consists of one executive director, one non-executive director, and three independent non-executive directors, ensuring a balanced power structure[90]. - The Company has adopted a code of conduct for Directors' securities transactions as required by the GEM Listing Rules, with all directors confirming compliance during the Reporting Period[95]. - The Board consists of five Directors, including one executive Director, one non-executive Director, and three independent non-executive Directors as of December 31, 2021[103]. - The Board focuses on overall strategies and policies, particularly emphasizing the growth and financial performance of the Group[113]. - The principal functions of the Board include establishing strategic direction, approving annual budgets, and overseeing internal controls and compliance[114]. - The Company has adopted a Board Diversity Policy to achieve diversity in the boardroom, considering factors such as gender, age, and professional experience[119]. Audit and Risk Management - The Audit Committee comprises at least three members who must be non-executive directors, with a majority being independent non-executive directors[164]. - The Audit Committee has been established since July 4, 2001, with its terms of reference revised on March 16, 2016, in compliance with the CG Code[164]. - During the Reporting Period, all members of the Audit Committee are independent non-executive Directors[166]. - The Audit Committee is scheduled to meet at least 4 times a year to review financial reporting and internal controls[170]. - The Audit Committee reviewed the Group's financial results for the three months ended March 31, 2021, six months ended June 30, 2021, nine months ended September 30, 2021, and the audited consolidated financial statements for the year ended December 31, 2021[172]. - The Audit Committee has the authority to investigate any matters under its duties and can obtain independent professional advice[170]. Human Resources and Workforce Management - Total employee remuneration for the year was approximately HK$16.4 million, a decrease from HK$115.8 million in 2020, reflecting a reduction in workforce from 172 employees to 21[66]. - The basic salary for each executive Director is recommended by the Remuneration Committee, considering individual performance and market salary rates[195][200]. - Bonuses for executive Directors and senior management are based on profit levels achieved against targets and individual performance assessments during the Reporting Period[197]. Financial Position and Assets - As of December 31, 2021, the Group recorded net current assets of HK$111.1 million, a significant improvement from net current liabilities of HK$57.5 million in 2020, primarily due to a profit of approximately HK$51.8 million from continuing operations[54]. - The Group's current assets increased to approximately HK$258.4 million in 2021 from HK$143.6 million in 2020, while current liabilities decreased to approximately HK$147.3 million from HK$201.1 million, resulting in a working capital ratio of 1.75 compared to 0.71 in the previous year[54]. - Cash and bank balances as of December 31, 2021, were approximately HK$9.9 million, up from HK$4.8 million in 2020[54]. - The Group's gearing ratio improved to 0.36 as of December 31, 2021, down from 0.5 in 2020, indicating a stronger financial position[54].

| --- | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------------|-------|-------|-------| | | | | | | 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 Incorporated in the Cayman Islands with limited liability Stock Code 股份代號： 8158 | | | | | --- | --- | |---------------------------------------------------------------------------------------------------------------------------------------- ...

| --- | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------------|-------|-------|-------| | | | | | | 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 Incorporated in the Cayman Islands with limited liability Stock Code 股份代號： 8158 | | | | | --- | --- | |---------------------------------------------------------------------------------------------------------------------------------------- ...

| --- | --- | --- | --- | |---------------------------------------------------------------------------------------------------------------------------------------------|-------|-------|-------| | | | | | | 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 Incorporated in the Cayman Islands with limited liability Stock Code 股份代號： 8158 | | | | | --- | --- | |----------------------------------------------------------------------------------------------------- ...

| --- | --- | --- | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------------|-------|-------|-------|-------|-------| | | | | | | | | 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 Incorporated in the Cayman Islands with limited liability Stock Code 股份代號： 8158 | | | | | | | | | | | | | | ANNUAL REPORT 2020 年報 | | | | | | CHARACTERISTICS OF GEM OF THE ...