Business Operations - The Group is primarily engaged in providing medical equipment finance leasing services, maternal and child postpartum care industry services, and trading of medical equipment and consumables in the PRC[26] - The Group's operations are focused on the PRC market, indicating a strategic emphasis on this region for growth and service delivery[27] - The Group's revenue doubled from 2021 to over RMB 300 million, indicating significant growth in its financial leasing services focused on medical equipment[29] - The Group provided finance leasing services to approximately 4,300 SMEs customers across 30 provinces in China, generating revenue of RMB 37.3 million during the year[48] - The maternal and child postpartum care industry services recorded revenue of RMB 50.8 million, but faced a segmental loss of RMB 1.7 million due to operational restrictions from epidemic control measures[55] Financial Performance - The financial year ended on December 31, 2022, marking the end of the reporting period for the Group[26] - The Group is optimistic about sustaining its core business despite economic uncertainties due to Covid-19, actively seeking opportunities to leverage its existing client base[29] - The Group's profit attributable to owners increased to approximately RMB 15.8 million for the Year, up from RMB 5.5 million in the Prior Year, primarily due to increased income from trading medical equipment and consumables[73] - Finance costs rose from approximately RMB 8.0 million in the Prior Year to approximately RMB 13.1 million for the Year, mainly due to increased interest on bank and other borrowings[72] - As of December 31, 2022, the Group's bank balances and cash were approximately RMB 13.7 million, down from RMB 33.5 million in 2021[76] - The Group's total equity as of December 31, 2022, was approximately RMB 310.8 million, compared to RMB 304.3 million in 2021[76] - The gearing ratio increased to approximately 42.4% as of December 31, 2022, from 38.6% in 2021, attributed to increased borrowings for business expansion[76] Risk Management - The Group's financial leasing services are focusing on risk management to improve asset quality and reduce risks, protecting shareholders' interests[34] - The Group has established a risk management system to address various risks including credit, liquidity, and operational risks associated with finance leasing services[49] - The Group continues to monitor and improve its risk management system to adapt to changes in market conditions and regulatory environments[49] Strategic Growth - The healthcare industry is expected to become a new economic breakthrough post-pandemic, with the Group positioning itself in the medical equipment leasing and trading sectors[29] - By 2025, China aims to establish a comprehensive medical equipment standard system, which is expected to drive growth in the high-end medical equipment market[34] - The full liberalization of the "three-child policy" is anticipated to increase demand for maternal and child postpartum care services, providing growth opportunities for the Group[37] - The Group plans to build a comprehensive mother and baby ecosystem with full industry chain coverage in the maternal and child postpartum care industry[37] - The Group will continue to increase investment across various businesses to find opportunities amid global economic challenges[38] Corporate Governance - The company emphasizes the importance of its Board in providing effective leadership and ensuring transparency and accountability in operations[100] - The Board has delegated various responsibilities to its committees to enhance corporate governance practices[105] - The company has been compliant with the GEM listing rules and corporate governance code, except for a specific deviation noted[103] - The Company has established a code of conduct and compliance manual applicable to Directors and employees[129] - The Board meets the requirements of the GEM Listing Rules, ensuring effective governance and oversight[129] - The Company has arranged appropriate liability insurance coverage for all Directors, which will be reviewed by the Board regularly[135] - The Company has implemented corporate governance practices in line with the GEM Listing Rules, ensuring transparency and accountability in operations[131] Board Composition and Responsibilities - The current Board composition includes two executive Directors, one non-executive Director, and three INEDs, ensuring a balance of skills and experiences[136] - The Board believes that the current structure does not impair the balance of power and authority between the Board and management[143] - The Company has established a Nomination and Corporate Governance Committee to oversee board appointments and governance practices[146] - The Board retains decision-making authority over significant transactions, requiring prior approval for any major dealings[133] - The independent directors provide critical insights and advice to the Board, enhancing decision-making processes[92] Employee and Supplier Relations - The Group employs a total of 281 employees, with 62 male and 219 female employees, indicating a diverse workforce[185] - During the Reporting Period, the Group had approximately 219 suppliers, all of which are from the PRC, and none failed to meet the Group's requirements[157] - The Group focuses on maintaining long-term relationships with suppliers that have good creditworthiness and quality products[157] - The Group is committed to providing a safe and equitable work environment for employees, adhering to labor laws in China and Hong Kong[153] Environmental Responsibility - The Group has implemented measures to reduce water consumption, although specific wastewater data could not be provided due to lack of sub-metering[181] - The Company has implemented measures for the disposal and recycling of computer-related products[149] Dividend and Shareholder Returns - A final dividend of HK 2.5 cents per share is recommended for the financial year 2022, reflecting the Group's commitment to returning value to shareholders[42] Acquisition and Profit Guarantees - The profit guarantee for the acquisition of Desheng Meimei requires a net profit after tax of no less than RMB 1.8 million for the period ending December 31, 2022, and RMB 2.2 million for the year ending December 31, 2023[60] - The actual profit after tax for Desheng Meimei from the completion date to December 31, 2022, was approximately RMB 0.9 million, resulting in the profit guarantee not being met[61] - The Group plans to exercise the option to request the vendor to repurchase the 51% equity interest in Desheng Meimei due to unmet profit guarantees, with the repurchase anticipated in the second half of 2023[61] - The Group acquired a 54% equity interest in Wuhan Jiaenbei Health Management Co., Ltd. for a consideration of RMB 3.24 million[64] - Jiaenbei is guaranteed to achieve a net profit after tax of no less than RMB 1.0 million for the periods ending December 31, 2021, 2022, and 2023[67]

Ziyuanyuan Holdings Group Limited 紫元元控股集團有限公司 （於開曼群島註冊成立的有限公司） 8223 （股份代號： ） 截至二零二二年十二月三十一日止年度 全年業績公告 GEM 香港聯合交易所有限公司（「聯交所」） 的特色 GEM 乃為較於聯交所上市的其他公司可能帶有更高投資風險的中小型公司而設的市場。有意 投資者應了解投資於該等公司的潛在風險，並應經過審慎周詳考慮後方作出投資決定。 GEM GEM 由於 上市公司普遍為中小型公司，於 買賣的證券可能會較於聯交所主板買賣的證 GEM 券承受較大的市場波動風險，同時無法保證於 買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本公告的內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表示，概不就因本公告全部或任何部份內容而產生或因倚賴該等內容而 引致的任何損失承擔任何責任。 GEM GEM 本公告乃遵照聯交所 證券上市規則（「 上市規則」）的規定而提供有關紫元元控股集 團有限公司（「本公司」）的資料，本公司之董事（「董事」）願就本公告共同及個別地承擔全部責 任。董事在作出一切合理查詢後，確認就彼等所知及所 ...

Financial Performance - Total revenue for the three months ended September 30, 2022, was RMB 93,214,000, an increase from RMB 26,872,000 in the same period of 2021[15]. - Profit before income tax for the three months ended September 30, 2022, was RMB 1,310,000, up from RMB 397,000 in the prior year[15]. - The profit and total comprehensive income for the period attributable to owners of the Company was RMB 930,000 for the three months ended September 30, 2022, compared to RMB 12,000 in the same period of 2021[15]. - Total revenue for the nine months ended September 30, 2022, was RMB 235,680,000, an increase from RMB 79,315,000 in the same period of 2021[15]. - The Group's total comprehensive income for the nine months ended September 30, 2022, was RMB 9,015,000, compared to RMB 4,424,000 in the prior year[15]. - Profit for the period after tax for the three months ended September 30, 2022, was RMB 230,000, compared to RMB 19,000 in the same period of 2021, reflecting a substantial increase[39]. - Profit attributable to owners of the Company for the Period was approximately RMB 9.0 million, up from RMB 3.9 million in the Prior Period, mainly due to increased income from trading of medical equipments[90]. Revenue Sources - Finance leasing income for the three months ended September 30, 2022, was RMB 11,295,000, slightly up from RMB 11,210,000 in the prior year[15]. - Income from postpartum care services and medical equipment trading reached RMB 16,204,000 for the three months ended September 30, 2022, compared to RMB 13,478,000 in the same period of 2021[15]. - The Group reported a significant increase in income from trading of medical equipment and consumables, reaching RMB 65,711,000 for the three months ended September 30, 2022[15]. - Revenue from finance leasing services during the nine months ended September 30, 2022, was RMB 31.1 million, serving approximately 4,000 SMEs across 30 provinces in China[61]. - Maternal and child postpartum care services generated revenue of RMB 40.9 million during the same period[63]. - The trading of medical equipment and consumables business achieved revenue of RMB 163.6 million during the nine months ended September 30, 2022[68]. Costs and Expenses - Interest on bank borrowing increased significantly to RMB 3,210,000 for the three months ended September 30, 2022, compared to RMB 1,949,000 in the same period of 2021, representing a 64.5% increase[36]. - Total staff costs for the three months ended September 30, 2022, were RMB 11,568,000, up 21.2% from RMB 9,545,000 in the same period of 2021[44]. - Cost of inventories sold surged to RMB 60,264,000 for the three months ended September 30, 2022, compared to RMB 1,909,000 in the same period of 2021, indicating a significant increase[44]. - Staff costs increased from RMB 25.3 million in the Prior Period to approximately RMB 31.2 million for the Period, primarily due to an increase in headcount and salaries[78]. - Other operating expenses rose from approximately RMB 38.2 million for the Prior Period to approximately RMB 41.9 million for the Period, mainly due to increased expenses in the postpartum care business[81]. - Finance costs increased from approximately RMB 6.0 million in the Prior Period to approximately RMB 9.7 million for the Period, driven by higher interest on bank and other borrowings[84]. Shareholder Information - As of September 30, 2022, Mr. Zhang Junshen and Mr. Zhang Junwei each hold 300,000,000 shares, representing a 75% interest in the Company[98][100]. - The ultimate controlling shareholders, Mr. Zhang Junshen and Mr. Zhang Junwei, confirmed their concert party arrangement on February 24, 2017, acknowledging their joint interests[100]. - The Company has a total of 75% of its issued share capital deemed to be held by the controlling shareholders[100]. - Ms. Tang Yiping holds a spouse interest in 300,000,000 shares, also representing a 75% interest in the Company[120]. Corporate Governance - The Company has complied with the GEM Listing Rules regarding the disclosure of interests and short positions[110]. - The Company has complied with the provisions of the Corporate Governance Code, except for a deviation from code provision A.2.1 regarding the separation of roles of chairman and CEO[135][140]. - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the nine months ended September 30, 2022, confirming compliance with applicable accounting standards and GEM Listing Rules[147]. - The Company considers high standards of corporate governance essential for its continuous growth[135]. Future Outlook - The Group remains optimistic about sustaining core business despite economic uncertainties due to Covid-19, focusing on leveraging the current client base for growth[69]. - The Group plans to continue investing in various businesses to find opportunities amidst challenges, aiming to enhance corporate and social value[70]. - The healthcare industry is expected to become a new economic breakthrough post-pandemic, with significant value-added potential[69]. - The Group is strategically focusing on finance leasing services and medical equipment related to the oral cavity and maternity and child industry[69].

Financial Performance - For the six months ended 30 June 2022, the company reported a revenue of HKD 50 million, representing a 20% increase compared to the same period last year[28]. - The net profit for the same period was HKD 10 million, which is a 15% increase year-on-year[28]. - Total revenue for the six months ended June 30, 2022, was RMB 142,466,000, an increase of 171.5% compared to RMB 52,443,000 for the same period in 2021[29]. - Profit and total comprehensive income for the period attributable to owners of the Company was RMB 8,103,000, compared to RMB 3,865,000 in the same period of 2021, representing a growth of 109.5%[29]. - Basic earnings per share for the six months ended June 30, 2022, was RMB 5,948, compared to RMB 854 for the same period in 2021, reflecting a significant increase[86]. - The Company reported a total comprehensive income of RMB 8,103,000 for the six months ended June 30, 2022, compared to RMB 3,865,000 for the same period in 2021, representing a growth of approximately 109.5%[36]. - Profit before income tax for the six months ended June 30, 2022, was RMB 9,698,000[57]. - The Company’s retained profits increased to RMB 66,135,000 as of June 30, 2022, from RMB 58,032,000 at the beginning of the year, marking an increase of about 13.9%[36]. Revenue Breakdown - Revenue for the six months ended June 30, 2022, was RMB 142,466,000, a significant increase from RMB 52,443,000 in the same period of 2021, representing a growth of 171.5%[52]. - Trading of medical equipment and consumables generated revenue of RMB 97,916,000 for the six months ended June 30, 2022, a substantial increase from RMB 2,780,000 in the same period of 2021, indicating a growth of 3515.4%[52]. - Income from postpartum care services increased to RMB 24,712,000, compared to RMB 23,459,000 in the same period of 2021, showing a growth of 5.3%[52]. - Finance leasing income decreased to RMB 19,317,000 for the six months ended June 30, 2022, down from RMB 25,678,000 in the prior year, reflecting a decline of 24.5%[52]. User Engagement and Market Expansion - User data showed a growth in active users by 25%, reaching a total of 200,000 users[28]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by the end of 2023[28]. - New product development includes the launch of a mobile application, expected to increase user engagement by 40%[28]. - The Company plans to continue its market expansion and product development strategies to enhance its competitive position in the industry[41]. Research and Development - The company has allocated HKD 5 million for research and development in new technologies for the upcoming fiscal year[28]. - Research and development costs recognized as an expense for the six months ended June 30, 2022, were RMB 436,000, compared to RMB 1,043,000 for the same period in 2021, showing a decrease in R&D expenditure[80]. Financial Position and Assets - Current assets totaled RMB 389,074,000 as of June 30, 2022, down from RMB 407,070,000 at the end of 2021, reflecting a decrease of 4.4%[31]. - Total assets less current liabilities were RMB 376,089,000 as of June 30, 2022, down from RMB 388,009,000 at the end of 2021, indicating a decrease of 3.1%[33]. - The Company’s total assets as of June 30, 2022, were RMB 311,801,000, reflecting a slight increase from RMB 304,322,000 at the beginning of the year[36]. Liabilities and Borrowings - The Company’s bank and other borrowings decreased to RMB 103,490,000 as of June 30, 2022, from RMB 117,496,000 at the end of 2021, a reduction of 11.9%[33]. - Total bank and other borrowings reached RMB 158,535,000, down 17% from RMB 191,205,000 as of December 31, 2021[147]. - Non-current liabilities decreased to RMB 55,045,000 from RMB 73,709,000, reflecting a reduction of 25%[147]. Impairment and Credit Risk - The total impairment losses recognized for the six months ended June 30, 2022, were RMB 4,736, compared to RMB 3,285 for the same period in 2021, indicating an increase in impairment[113]. - The impairment losses recognized on trade receivables amounted to RMB 736 for the six months ended June 30, 2022, with a 12-month expected credit loss allowance of RMB 736[113]. - The ageing analysis of finance lease receivables showed that past due amounts were RMB 10,852,000 as of June 30, 2022, compared to RMB 11,828,000 as of December 31, 2021[99]. Taxation - The total tax charge for the six months ended June 30, 2022, was RMB 1,763,000, compared to RMB 218,000 for the same period in 2021, indicating a rise in tax obligations due to increased profitability[78]. - The Company’s PRC subsidiaries are subject to a standard enterprise income tax rate of 25%, with one subsidiary benefiting from a reduced rate of 15% as a high technology enterprise[76]. Staff Costs - Total staff costs for the six months ended June 30, 2022, amounted to RMB 22,602,000, an increase of 30.7% from RMB 17,317,000 in the same period of 2021[80]. - Staff costs recognized in profit or loss for the six months ended June 30, 2022, were RMB 20,639,000, up from RMB 16,296,000 in the same period of 2021, marking a 26.5% increase[80].

Financial Performance - Total revenue for the three months ended March 31, 2022, was RMB 31,753,000, representing a 40.6% increase from RMB 22,553,000 in the same period of 2021[15] - Profit and total comprehensive income for the period was RMB 1,895,000, a decline of 38.3% compared to RMB 3,071,000 in the first quarter of 2021[15] - Earnings per share attributable to owners of the Company for the period was RMB 0.54, down from RMB 0.75 in the same period last year[13] - The profit attributable to owners of the Company for the three months ended 31 March 2022 was approximately RMB 2,155,000, compared to RMB 3,011,000 for the same period in 2021, indicating a decrease of about 28.4%[67] - The total profit and comprehensive income attributable to the owners of the company for the three months ended March 31, 2022, was approximately RMB 2.2 million, a decrease from RMB 3.0 million in the same period of 2021, primarily due to increased employee costs, operating expenses, and financing costs[104] Revenue Breakdown - Income from postpartum care services increased to RMB 11,869,000, up 26.1% from RMB 9,400,000 in the previous year[15] - Revenue from trading of medical equipment and consumables reached RMB 8,111,000 in Q1 2022, with no prior year comparison available[44] - Income from postpartum care services was RMB 11,869,000, an increase of 26.3% compared to RMB 9,400,000 in Q1 2021[44] - For the three months ended 31 March 2022, the Group's revenue increased by approximately RMB9.2 million or approximately 40.8% to approximately RMB31.8 million compared to RMB22.6 million for the same period in 2021[88] - Revenue from postpartum care services increased from approximately RMB9.4 million for the three months ended 31 March 2021 to approximately RMB11.9 million for the same period in 2022[88] - The income from trading of medical equipments and consumables was approximately RMB8.1 million for the three months ended 31 March 2022, compared to nil for the same period in 2021[88] Cost and Expenses - The Group's cost of sales was RMB 6,611,000, with no corresponding figure reported for the previous year[15] - Staff costs increased to RMB 10,136,000, up from RMB 7,597,000 in the same period of 2021[15] - The total staff costs for the three months ended 31 March 2022 amounted to RMB 11,259,000, an increase from RMB 8,054,000 in the same period of 2021, representing a growth of approximately 39.4%[65] - Other operating expenses increased from approximately RMB10.5 million for the three months ended 31 March 2021 to approximately RMB12.0 million for the three months ended 31 March 2022[95] - The other operating expenses for the postpartum care business rose from approximately RMB5.8 million for the three months ended 31 March 2021 to approximately RMB8.5 million for the three months ended 31 March 2022[95] - Finance costs increased from approximately RMB2.0 million for the three months ended 31 March 2021 to approximately RMB3.2 million for the three months ended 31 March 2022, primarily due to an increase in bank borrowing interest[99] Assets and Liabilities - The Group's total assets as of March 31, 2022, were RMB 306,217,000, compared to RMB 309,637,000 as of March 31, 2021[28] - Non-controlling interests at the end of the period were RMB 4,539,000, down from RMB 4,258,000 in the previous year[28] Shareholding and Governance - The number of issued ordinary shares as of 31 March 2022 was 400,000,000, with an issued share capital of HK$40,000,000[103] - The Company has confirmed that all Directors have complied with the Code of Conduct regarding securities transactions for the three months ended March 31, 2022[151] - The Company has adopted and complied with the Corporate Governance Code, except for a deviation from code provision A.2.1[141] - The roles of chairman and chief executive officer are held by Mr. Zhang Junshen, which the Board believes does not impair the balance of power and authority[149] - The Company maintains a high standard of corporate governance as essential for its continuous growth[141] Future Outlook and Strategy - The Group is optimistic about sustaining core business despite economic uncertainties due to the Covid-19 outbreak[83] - The Group plans to leverage its current client base to seek growth opportunities in the healthcare industry post-pandemic[83] - The Group aims to diversify its income streams through the development of trading medical equipments and consumables business[83] - Future outlook includes potential strategies for market expansion and product development to enhance revenue streams[104] Compliance and Audit - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the three months ended March 31, 2022, and confirmed compliance with applicable accounting standards and GEM Listing Rules[159] - The financial information in the report has not been audited, but adequate disclosures have been made according to legal requirements[159] - The Audit Committee is chaired by Mr. Chan Chi Fung Leo, who holds the necessary professional qualifications[158]

Financial Performance - Ziyuanyuan Holdings Group Limited reported a significant increase in revenue, achieving a total of HKD 150 million, representing a growth of 25% year-over-year[1]. - The company has reported a net profit of HKD 30 million, reflecting a 10% increase from the previous year[1]. - The Group's revenue doubled compared to 2020, achieving a breakthrough of over RMB100 million in revenue for the first time[30]. - For the year ended 31 December 2021, the Group's revenue increased by approximately RMB60.9 million or approximately 104.1% to approximately RMB119.4 million compared to RMB58.5 million in 2020[54]. - Revenue from maternal and child postpartum care industry services was RMB51.4 million for the year ended 31 December 2021, up from approximately RMB2.2 million in 2020[54]. - The increase in revenue for the year was mainly attributed to the growth in postpartum care services and new income from trading medical equipment[54]. Market Expansion and Strategy - Future outlook indicates a projected revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion strategies[1]. - Ziyuanyuan Holdings plans to enter two new markets in Southeast Asia by the end of the next fiscal year, targeting a market share of 15% in these regions[1]. - The Group is focused on the development of finance leasing services in the medical equipment industry, particularly in the oral cavity and maternity sectors[30]. - The implementation of the three-child policy in China is expected to further stimulate the fertility rate, benefiting the maternal and child postpartum care industry[39]. - The Group aims to diversify its income by integrating resources and optimizing its industrial structure[30]. Investments and Acquisitions - The company has completed a strategic acquisition of a local tech firm for HKD 25 million, expected to enhance its technological capabilities[1]. - The Group's acquisition of Guangzhou Sheng Cheng Dunnan Enterprise Management Co., Ltd. for RMB31 million was completed in February 2021, expanding its postpartum care services[49]. - The Group acquired 54% of Wuhan Jiaenbei Health Management Co. Ltd. for RMB3.24 million, further enhancing its service offerings in postpartum care[49]. - China Development Bank Financial Leasing Co., Ltd. agreed to grant a revolving sale and leaseback facility to the Group up to RMB200 million for the operation of finance lease business[35]. - China Construction Bank Corporation provided the Group with a total strategic credit of RMB500 million to support the trading business of medical devices, equipment, and consumables[36]. Research and Development - The company is investing HKD 10 million in research and development for new technologies aimed at enhancing user experience[1]. Sustainability Initiatives - The company is focusing on sustainability initiatives, allocating 5% of its annual budget towards environmental and social governance projects[1]. Financial Position and Liquidity - As of December 31, 2021, bank balances and cash were approximately RMB33.5 million, down from RMB84.8 million in 2020, indicating a significant decrease in liquidity[71]. - The Group's total equity as of December 31, 2021, was approximately RMB304.3 million, compared to RMB303.3 million in 2020, showing a slight increase[71]. - The gearing ratio increased to approximately 38.6% as of December 31, 2021, from 24.7% in 2020, attributed to increased bank and other borrowings for business expansion[71]. - As of December 31, 2021, the Group's bank and other borrowings amounted to approximately RMB191.2 million, up from RMB99.7 million in 2020, reflecting a significant increase in leverage[71]. Employee and Management Overview - As of December 31, 2021, the Group had 241 employees, an increase from 102 employees in 2020, with total staff costs of approximately RMB 36.9 million for the year, up from RMB 15.8 million in 2020[92]. - The Group's remuneration policy rewards employees and Directors based on individual performance and the Group's performance, with regular reviews of remuneration packages[92]. - The management team has a robust background in both corporate finance and operational management, positioning the company for future growth[101]. Corporate Governance - The Company adopted and complied with the Corporate Governance Code during the Reporting Period, ensuring proper regulation of business activities[121]. - The Board emphasizes transparency and accountability in the Company's operations, setting appropriate policies for governance[120]. - The Company has implemented corporate governance practices appropriate to its business conduct and growth[121]. - The Board's responsibilities include reviewing and monitoring the Group's policies on compliance with legal and regulatory requirements[131]. Risk Management - The Group's risk management policies are formulated to enhance post-drawdown performance and mitigate potential risks[106]. - The internal control reports submitted by the internal audit department were reviewed by the Audit Committee[200].

Revenue Performance - Total revenue for the three months ended September 30, 2021, was RMB 26,872,000, representing a 91.5% increase compared to RMB 14,028,000 for the same period in 2020[20] - Total revenue for the nine months ended September 30, 2021, was RMB 79,315,000, an increase of 80.8% compared to RMB 43,875,000 for the same period in 2020[20] - The company experienced an increase in income from trading of medical equipment and consumables, reaching RMB 2,006,000 for the three months ended September 30, 2021, compared to RMB 0 in the previous year[20] - Revenue for the period includes finance leasing income, interest income on loan receivables, postpartum care services, and trading of medical equipment, with significant contributions from these categories[54] - Total income from trading of medical equipment and consumables reached RMB 2,006 for the three months ended September 30, 2021, with a total of RMB 4,786 for the nine months ended September 30, 2021[55] - The increase in revenue was mainly attributed to new postpartum care services income of RMB36.9 million and new income from trading of medical equipment and consumables of RMB4.8 million[108] Profit and Income - Profit before income tax for the three months ended September 30, 2021, was RMB 397,000, a decrease of 91.6% from RMB 4,702,000 in the previous year[22] - The company reported a profit and total comprehensive income of RMB 378,000 for the three months ended September 30, 2021, down 91.9% from RMB 4,692,000 in the same period of 2020[23] - Earnings per share attributable to owners of the company for the three months ended September 30, 2021, was RMB 0.003, a decrease from RMB 1.165 in the prior year[26] - Profit and total comprehensive income for the period was RMB 3,877 million, a decrease from RMB 9,899 million in the same period last year[39] - Profit and total comprehensive income attributable to owners of the Company decreased from approximately RMB9.9 million for the nine months ended September 30, 2020 to approximately RMB3.9 million for the nine months ended September 30, 2021[125] Costs and Expenses - Staff costs for the three months ended September 30, 2021, were RMB 8,965,000, an increase of 157.5% from RMB 3,477,000 in the same period last year[21] - Total staff costs for the nine months ended September 30, 2021 amounted to RMB 26,862,000, an increase from RMB 10,763,000 for the same period in 2020[7] - Other operating expenses rose from approximately RMB10.9 million for the nine months ended September 30, 2020 to approximately RMB42.8 million for the same period in 2021, with significant contributions from the newly established postpartum care centres[115] - The increase in staff costs and other operating costs offset the increase in revenue and other gains, leading to a decrease in profit[125] Assets and Liabilities - As of 30 September 2021, total assets amounted to RMB 302,033 million, an increase from RMB 300,271 million as of 1 January 2021[39] - The company reported a total comprehensive income of RMB 4,424 million for the period, reflecting a significant change in financial performance[39] - The company is required to appropriate 10% of its profit after taxation to statutory reserves before any distribution of dividends[43] Dividends - Dividends to shareholders for the period were RMB (8,333) million, compared to RMB (10,884) million in the previous year[39] - A final dividend of HK2.5 cents per share was declared, totaling HK$10,000,000 (equivalent to RMB 8,333,000) for the nine months ended 30 September 2021[71] - The Group does not recommend the payment of an interim dividend for the nine months ended September 30, 2021[71] Corporate Governance - The Company has complied with the provisions of the Corporate Governance Code, except for a deviation from code provision A.2.1[164] - The company maintains that high standards of corporate governance are crucial for its sustained growth[167] - The Board believes that the dual role of Mr. Zhang Junshen as Chairman and CEO does not impair the balance of power and authority[169] - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the nine months ended September 30, 2021, and confirmed compliance with applicable accounting standards[175] Market Outlook and Strategy - The postpartum care industry in China is projected to reach approximately RMB29 billion by 2024, indicating strong growth potential[96] - The Group anticipates benefiting from the robust outlook of postpartum care centers due to the implementation of the three-child policy in May 2021[96] - The Group aims to expand its postpartum care business in Southern and Central China through acquisitions and flagship center openings[103] - The Group intends to explore acquisition and partnership opportunities to diversify its business and strengthen its revenue base[106] Shareholding Structure - Mr. Zhang Junshen and Mr. Zhang Junwei each hold 300,000,000 shares, representing a 75% shareholding in the company[135] - The interests of Mr. Zhang Junshen consist of 219,801,980 shares held by Hero Global and 80,198,020 shares as a party acting in concert with Mr. Zhang Junwei[139] - The interests of Mr. Zhang Junwei consist of 80,198,020 shares held by Icon Global and 219,801,980 shares as a party acting in concert with Mr. Zhang Junshen[139] - As of September 30, 2021, the controlling shareholders, Mr. Zhang Junshen and Mr. Zhang Junwei, collectively hold 75% of the issued share capital of the Company through Hero Global and Icon Global[151]

Financial Performance - Ziyuanyuan Holdings Group Limited reported a significant increase in revenue for the six months ended June 30, 2021, with total revenue reaching approximately HKD 50 million, representing a growth of 25% compared to the same period in the previous year[28]. - The company achieved a net profit of approximately HKD 10 million for the first half of 2021, which is a 15% increase year-on-year, indicating improved operational efficiency[28]. - Total revenue for the six months ended June 30, 2021, was RMB 52,443,000, representing a 75.6% increase from RMB 29,847,000 in the same period of 2020[29]. - Profit and total comprehensive income for the period attributable to owners of the Company was RMB 3,865,000, compared to RMB 5,238,000 in the same period of 2020, indicating a decrease of 26.2%[29]. - Earnings per share for the period was RMB 0.97, down from RMB 1.31 in the same period of 2020, reflecting a decline of 26%[29]. - Future guidance indicates an expected revenue growth of 15% for the second half of 2021, driven by increased demand and new product launches[28]. - The Group's profit before income tax was RMB 4,264,000, down from RMB 4,722,000 in the previous year, reflecting a decline of 9.7%[60]. User Engagement and Market Expansion - User data showed a growth in active users by 30%, reaching a total of 200,000 active users as of June 30, 2021, reflecting the company's successful marketing strategies[28]. - Ziyuanyuan Holdings Group Limited plans to expand its market presence in Southeast Asia, targeting a 20% increase in market share by the end of 2022[28]. - The company has implemented new strategies to improve customer engagement, aiming for a 10% increase in customer retention rates by the end of 2021[28]. Investment and Development - The company is investing in new product development, with an allocation of HKD 5 million towards research and development of innovative technologies in the next fiscal year[28]. - The Group's acquisition of subsidiaries contributed RMB2,630,000 to property, plant, and equipment during the six months ended June 30, 2021[90]. - The Group acquired 54% equity of Wuhan Jiaenbei Health Management Co. Ltd. for RMB3,240,000, with the transfer completed in January 2021[191]. Financial Health and Liquidity - The company reported a cash flow from operations of approximately HKD 12 million, indicating strong liquidity and financial health[28]. - The net cash used in operating activities for the six months ended June 30, 2021, was RMB (33,754,000), compared to RMB 39,404,000 generated in the same period of 2020, indicating a significant decrease in cash flow from operations[43]. - The Company reported finance leasing income of RMB 25,678,000 for the six months ended June 30, 2021, down from RMB 28,874,000 in the same period of 2020, a decrease of 7.6%[29]. Assets and Liabilities - Non-current assets increased to RMB 160,760,000 as of June 30, 2021, from RMB 132,625,000 as of December 31, 2020, marking a growth of 21.1%[31]. - Current assets rose to RMB 321,630,000 as of June 30, 2021, compared to RMB 306,986,000 as of December 31, 2020, an increase of 4.8%[31]. - Total liabilities increased to RMB 327,418,000 as of June 30, 2021, from RMB 312,475,000 as of December 31, 2020, reflecting a rise of 4.8%[33]. - The Company’s bank borrowings increased to RMB 117,672,000 as of June 30, 2021, from RMB 99,730,000 as of December 31, 2020, representing an increase of 17.9%[33]. Impairment and Credit Management - The Group recorded impairment losses of receivables amounting to RMB 3,539,000 for the six months ended June 30, 2021[60]. - The total impairment loss allowance for finance lease receivables as of June 30, 2021, is RMB 19,892,000, which includes RMB 10,829,000 for non-credit-impaired and RMB 9,063,000 for credit-impaired[155]. - The Group's total expected credit loss (ECL) for loan receivables was assessed, with movements in 12-month and lifetime ECL being monitored closely[162]. Shareholder Returns - A final dividend of HK$10,000,000 (equivalent to RMB 8,333,000) was declared for the six months ended June 30, 2021, down from HK$12,000,000 (equivalent to RMB 10,884,000) in the same period of 2020[82]. - The Company did not recommend the payment of an interim dividend for the six months ended June 30, 2021, compared to no interim dividend in the same period of 2020[83]. Taxation and Deferred Tax - The current tax expense for the six months ended June 30, 2021, was RMB 708,000, a decrease of 68.1% from RMB 2,208,000 in the same period of 2020[75]. - Deferred tax assets as of June 30, 2021, were RMB 5,245,000, compared to RMB 5,070,000 as of December 31, 2020, indicating a slight increase of about 3%[166]. - The Group recognized a total of RMB 2,175,000 in deferred tax liabilities as of June 30, 2021, down from RMB 3,924,000 as of December 31, 2020, representing a decrease of approximately 44%[166].

Financial Performance - Total revenue for the three months ended March 31, 2021, was RMB 22,553,000, representing an increase of 50.5% compared to RMB 14,998,000 for the same period in 2020[16] - Profit attributable to owners of the Company for the period was RMB 3,011,000, a decrease of 16.8% from RMB 3,620,000 in the same period of 2020[16] - The Group's total comprehensive income for the period was RMB 3,071,000, compared to RMB 3,620,000 in the same period of 2020[16] - Revenue for the three months ended March 31, 2021, was RMB 22,553,000, an increase of 50.7% compared to RMB 14,998,000 for the same period in 2020[46] - The Group's profit for the period has been arrived at after charging various expenses, including RMB 1,228,000 for depreciation of property, plant, and equipment[67] - For the three months ended 31 March 2021, the profit and total comprehensive income attributable to owners of the Company was approximately RMB3.0 million, a decrease from RMB3.6 million for the same period in 2020, primarily due to increased staff and operating costs[112] Revenue Streams - Income from postpartum care services was RMB 9,400,000, which was a new revenue stream introduced in 2021[16] - New postpartum care services contributed RMB 9.4 million to the revenue, offsetting a decrease in finance leasing income from approximately RMB 15.0 million to approximately RMB 13.2 million[100] - Other gains for the three months ended March 31, 2021, totaled RMB 1,338,000, compared to RMB 8,000 in 2020[49] Expenses and Costs - Finance lease income decreased to RMB 12,863,000, down 11.3% from RMB 14,502,000 in the previous year[16] - Interest income from loan receivables was RMB 290,000, down 41.6% from RMB 496,000 in the same period last year[16] - Total staff costs for the period were RMB 8,054,000, an increase of 138.5% from RMB 3,371,000 in the same period of 2020[66] - Other operating expenses rose from approximately RMB 2.9 million to approximately RMB 10.5 million, mainly due to increased depreciation from a new head office and expenses related to the new maternal and child postpartum care business[107] Assets and Liabilities - The Group's total assets as of March 31, 2021, were RMB 309,637,000, reflecting growth from RMB 300,271,000 at the beginning of the year[32] - The Group's retained profits increased to RMB 56,149,000 as of March 31, 2021, compared to RMB 53,138,000 at the beginning of the year[32] - The total impairment losses under the expected credit loss model were RMB 7,597,000, compared to RMB 3,198,000 in the same period last year[16] Corporate Governance - The Company has adopted the Corporate Governance Code and complied with its provisions, except for a deviation from code provision A.2.1[1] - The Board believes that the dual role of Mr. Zhang Junshen as both chairman and CEO does not impair the balance of power and authority within the Company[1] - The Audit Committee consists of non-executive and independent non-executive Directors, with Mr. Chan Chi Fung Leo serving as the chairman, holding the required professional qualifications[164] Market and Strategic Outlook - The market size of postpartum care centers in the PRC is projected to reach approximately RMB29 billion by 2024, indicating a positive outlook for the industry[85] - The Group aims to expand its postpartum care services in Southern and Central China, focusing on acquisitions and flagship center openings to increase market share[91] - The Group plans to target mid-end brands in tier 1 cities due to market saturation in high-end postpartum care centers[92] - The maternal and child postpartum care industry is expected to experience significant growth over the next decade due to increasing wealth and favorable government policies[89] Shareholding and Ownership - The ultimate controlling shareholders, Mr. Zhang Junshen and Mr. Zhang Junwei, collectively own 75.0% of the issued share capital of the Company[1] - The interests of Directors and the chief executive in the Shares include 300,000,000 shares held, representing approximately 75% of the shareholding[119] - As of March 31, 2021, no other directors or chief executives had interests in shares or underlying shares that required disclosure[130] Compliance and Reporting - The Group's unaudited condensed consolidated financial statements for the three months ended March 31, 2021, have been reviewed by the Audit Committee, ensuring compliance with applicable accounting standards and GEM Listing Rules[165] - The financial information in the report has not been audited, but adequate disclosures have been made according to legal requirements[165] - There were no significant events affecting the Group after March 31, 2021, up to the date of the report[1]

Company Overview - Ziyuanyuan Holdings Group Limited is incorporated in the Cayman Islands and listed on the GEM of the Hong Kong Stock Exchange, which is designed for companies with higher investment risks[1]. - The company acknowledges the potential for high market volatility and lower liquidity in securities traded on GEM compared to those on the Main Board[4]. - The directors confirm that the information in the report is accurate and complete in all material respects, with no misleading or deceptive statements[4]. - The principal place of business in the PRC is located in Shenzhen, indicating the company's operational focus in mainland China[15]. Corporate Governance - The report outlines the corporate governance structure, including various committees such as the Audit Committee and Remuneration Committee[13]. - The company is committed to compliance with GEM Listing Rules and has appointed Guoyuan Capital (Hong Kong) Limited as its compliance adviser[15]. - The Company adopted and complied with the Corporate Governance Code during the reporting period, ensuring proper regulation of business activities and decision-making processes[197]. - The Board is responsible for promoting the success of the Company by providing effective leadership and ensuring transparency and accountability of operations[199]. - The Group's management is tasked with implementing corporate governance practices appropriate for the growth of the business[196]. - The Company has set appropriate policies for internal control systems and risk management systems to safeguard its operations[199]. - The Company has complied with key corporate governance principles and practices during the reporting period, with a noted deviation from code provision A.2.1[198]. Financial Performance - The annual report includes a comprehensive financial statement, detailing profit or loss and other comprehensive income, as well as financial position and cash flows[10]. - Profit attributable to owners of the Company decreased to approximately RMB13.0 million in 2020 from RMB16.9 million in 2019, primarily due to the operational disruptions caused by Covid-19[71]. - As of December 31, 2020, cash and cash equivalents increased to approximately RMB84.8 million from RMB22.3 million in 2019[72]. - The Group's working capital increased to approximately RMB179.9 million in 2020 from RMB172.6 million in 2019[72]. - The Group's total equity as of 31 December 2020 was approximately RMB303.3 million, up from RMB300.3 million in 2019[74]. - The Group's debt-to-equity ratio as of December 31, 2020, was approximately 24.7%, up from 15.8% in 2019, primarily due to increased bank borrowings for business expansion[80]. - A final dividend of HK 2.5 cents per share was recommended for the financial year 2020, reflecting the Board's appreciation for shareholder support[43]. Business Operations - The Group is primarily engaged in providing medical equipment finance leasing services and maternal and child postpartum care industry services in the PRC[21]. - The market size of postpartum care centres in the PRC is estimated to reach approximately RMB 29 billion by 2024, indicating a positive outlook for the industry[28]. - The Group aims to develop its postpartum care business in Southern and Central China, focusing on acquisitions and opening flagship postpartum care centres to increase market share[34]. - The maternal and child postpartum care industry is expected to experience rapid growth due to rising demand and favorable government policies, marking the next ten years as a golden decade for the industry[30]. - The Group has established Shenzhen Meijiaer Health Management Co., Ltd. in 2020 to focus on maternal and child postpartum care services[34]. - The Group plans to provide one-stop services for mothers and infants, including postpartum care centres, training schools, and maternal and infant e-commerce[34]. - The Group is shifting its target to mid-end brands in tier 1 cities, focusing on middle-class consumers due to intense competition in high-end postpartum care centres[35]. - The Group remains optimistic about sustaining its core business despite economic uncertainties caused by the Covid-19 pandemic[23]. - The finance leasing market in the PRC is expected to grow as the penetration of finance lease deepens, supported by policy measures for SMEs[22]. - The Covid-19 pandemic has highlighted the rigid demand for postpartum care services, as many parents prefer using postpartum care centres over hiring individual maternity matrons[29]. - The Group acquired a high-end postpartum care center and established a flagship center in Wuhan, offering services in health care, dietary nutrition, recovery, and intellectual development for newborns[54]. Staffing and Costs - Staff costs increased from RMB 13.8 million in 2019 to approximately RMB 14.6 million in 2020, attributed to increased headcount and salaries, as well as costs from new postpartum care services[58]. - Employee costs increased from approximately RMB13.8 million for the year ended 31 December 2019 to approximately RMB14.6 million for the year ended 31 December 2020, primarily due to an increase in employee numbers and salaries[61]. - The total staff cost for the year ended December 31, 2020, was approximately RMB15.8 million, an increase from RMB15.1 million in 2019[90]. - The Group had 102 employees as of December 31, 2020, compared to 56 employees in 2019, reflecting growth in operations[90]. Risk Management and Compliance - The Group aims to further strengthen its risk management capabilities as part of its strategic development[102]. - The management team is committed to compliance and risk management, which is essential for maintaining operational integrity[171]. - The Group upgraded its OA System to closely monitor customers' business operations and financial performance[102]. - Training was provided to staff to enhance knowledge in risk management and the new medical device industry[102]. Leadership and Management - The company has appointed various directors with significant experience in their respective fields, enhancing its strategic planning and management capabilities[171]. - The management team includes members with advanced degrees in finance and business management, indicating a strong educational background[169][170]. - The Group's leadership team is composed of individuals with extensive backgrounds in finance, enhancing its strategic decision-making capabilities[180]. - The appointment of independent directors like Mr. Chow and Mr. Zhang strengthens the governance structure of the Group[176]. - Mr. Zhang Junshen has approximately 10 years of overall company management experience and about 5 years in the financing leasing industry[168]. - Mr. Zhang Yong has over 5 years of experience in investments and capital market management, serving as the president of Shenzhen Futian District Economic Promotion Association since March 2020[178]. - Ms. Li Xiangying has over 20 years of experience in finance and accounting, overseeing financial management and internal audit for the Group[180]. Acquisitions and Investments - The Group acquired a 51% equity interest in Wuhan Desheng Meimei Health Management Co., Ltd. for RMB3.4 million, completed in August 2020, with performance targets set for the next three years[84]. - The Group also purchased the entire equity interest in Guangzhou Sheng Cheng Dunnan Enterprise Management Co., Ltd. for RMB31 million, with the transfer completed in February 2021[84]. - The Group injected a total of RMB 40.4 million into its existing finance leasing business in the PRC printing and logistics industries[98]. - The Group established operation centers in Beijing, Hangzhou, Chengdu, and Wuhan to strengthen its market position[98]. Financial Liabilities - An additional impairment loss of approximately RMB 3.5 million was recognized in 2020, up from RMB 2.9 million in 2019, due to the impact of Covid-19 on customer payment delays[60]. - Other operating expenses rose from approximately RMB13.3 million in 2019 to approximately RMB21.4 million in 2020, driven by increased depreciation and expenses related to new postpartum care services[65]. - Finance costs decreased from approximately RMB13.0 million in 2019 to approximately RMB8.3 million in 2020, mainly due to a reduction in imputed interest expense on interest-free deposits[66]. - The Group's finance lease receivables and loan receivables, with a total carrying value of approximately RMB25.1 million, were pledged to secure bank borrowings[79]. - The Group did not experience any significant contingent liabilities as of December 31, 2020, remaining at nil as in 2019[89]. - The Group did not have any other significant investments or material acquisitions during the year ended December 31, 2020[87].