德斯控股(08437) - 2024 - 中期财报

Highlights The Group's H1 2024 performance significantly improved, with revenue up 80.1% to S$2.36 million and a S$0.88 million profit, reversing a prior-year loss Key Performance Indicators for H1 2024 | Metric | H1 2024 (S$) | H1 2023 (S$) | YoY Change | | :--- | :--- | :--- | :--- | | Unaudited Revenue | S$2,357,000 | S$1,309,000 | +80.1% | | Unaudited Profit/(Loss) | S$879,000 | (S$2,794,000) | +131.5% (Turned profitable) | | Earnings/(Loss) Per Share | 0.08 Singapore cents | (0.20) Singapore cents | Turned profitable | | Interim Dividend | Not declared | Not declared | No change | Unaudited Interim Results This section presents the Group's unaudited interim financial statements, including the condensed consolidated statements of profit or loss, financial position, changes in equity, and cash flows Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For H1 2024, the Group's revenue grew 80.1% to S$2.357 million, achieving a S$0.879 million pre-tax profit and reversing a S$2.794 million prior-year loss Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Item (S$ thousand) | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Revenue | 2,357 | 1,309 | | Other operating income | 2,833 | 562 | | Total operating expenses | (3,211) | (4,625) | | Finance costs | (81) | (36) | | Profit/(Loss) before tax | 879 | (2,794) | | Income tax expense | – | – | | Profit/(Loss) for the period | 879 | (2,794) | | Other comprehensive (expense)/income | (215) | 133 | | Total comprehensive income/(expense) for the period | 664 | (2,661) | | Basic earnings/(loss) per share attributable to owners of the Company (Singapore cents) | 0.08 | (0.20) | Condensed Consolidated Statement of Financial Position As of June 30, 2024, the Group's total deficit expanded to S$17.421 million, with net current liabilities increasing to S$18.063 million, indicating liquidity pressure Condensed Consolidated Statement of Financial Position Summary (S$ thousand) | Item | June 30, 2024 (Unaudited) | Dec 31, 2023 (Audited) | | :--- | :--- | :--- | | Non-current assets | 5,729 | 1,008 | | Current assets | 3,783 | 3,140 | | Total assets | 9,512 | 4,148 | | Current liabilities | 21,846 | 15,242 | | Non-current liabilities | 5,087 | 1,425 | | Total liabilities | 26,933 | 16,667 | | Net current liabilities | (18,063) | (12,102) | | Net liabilities/Total deficit | (17,421) | (12,519) | Condensed Consolidated Statement of Changes in Equity For H1 2024, the Group's total deficit increased from S$12.519 million to S$17.421 million, driven by S$0.664 million in comprehensive expense and a S$5.566 million equity reduction from a subsidiary acquisition - Total deficit at the beginning of the period was S$12.519 million[11] - Total comprehensive expense for the period was S$0.664 million, including a profit of S$0.965 million attributable to owners of the Company and a loss of S$0.301 million attributable to non-controlling interests[11] - Equity decreased by S$5.566 million due to the acquisition of a subsidiary[11] - Total deficit expanded to S$17.421 million at the end of the period[11] Condensed Consolidated Statement of Cash Flows In H1 2024, operating activities generated S$7.26 million positive cash flow, while investing activities had a S$6.463 million outflow, resulting in cash and cash equivalents increasing to S$0.558 million Condensed Consolidated Statement of Cash Flows Summary (S$ thousand) | Item | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Cash generated from operating activities | 7,260 | (1,189) | | Cash (used in)/from investing activities | (6,463) | 1,134 | | Cash used in financing activities | (330) | (492) | | Net increase/(decrease) in cash and cash equivalents | 447 | (547) | | Cash and cash equivalents at beginning of period | 306 | 512 | | Effect of exchange rate changes | (215) | 112 | | Cash and cash equivalents at end of period | 558 | 77 | Notes to the Condensed Consolidated Financial Statements This section provides detailed notes to the condensed consolidated financial statements, covering basis of preparation, segment information, and related party transactions Basis of Preparation of the Condensed Consolidated Financial Statements and Going Concern The financial statements are prepared under IFRS, with management addressing significant going concern uncertainty due to S$18.063 million net current liabilities and S$0.558 million cash, by implementing measures to ensure sufficient working capital - As of June 30, 2024, the Group's current liabilities exceeded current assets by approximately S$18.063 million, and cash and cash equivalents were only approximately S$0.558 million, indicating significant uncertainty that may cast significant doubt on its ability to continue as a going concern[17][19][20] - To address liquidity risks, management has taken several measures, including: - Accelerating accounts receivable collection - Communicating with Singapore liquidators and financial institutions to verify debts - Streamlining non-core businesses to reduce costs - Actively seeking other financing options such as introducing new investors or issuing new shares[20][21] - The directors believe that, based on the above measures, the Group will have sufficient working capital to sustain operations for the next twelve months, thus preparing the financial statements on a going concern basis is appropriate[21] Revenue and Segment Information H1 2024 total revenue was S$2.357 million, a 80.1% year-on-year growth, diversified across dental services, trading sales, and new therapeutic services, with dental services contributing 38.9% Revenue by Business Segment (S$ thousand) | Business Segment | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Therapeutic services | 621 | – | | Dental services | 916 | 900 | | Trading sales | 820 | 409 | | Total | 2,357 | 1,309 | Related Party Transactions Total remuneration to key management personnel was S$0.202 million, a significant decrease from S$0.668 million in the prior period, with S$1.438 million payable to a related party, unsecured and interest-free, due March 9, 2025 Key Management Personnel Remuneration (S$ thousand) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Salaries, bonuses and other benefits | 200 | 663 | | Retirement benefit scheme contributions | 2 | 5 | | Total | 202 | 668 | - As of June 30, 2024, the amount payable to related party 'Guangdong Tianban Grand Health Industry Co., Ltd.' was S$1.438 million, which is unsecured, interest-free, and repayable by March 9, 2025[63][64][65] Management Discussion and Analysis This section provides management's insights into the Group's business performance, financial condition, and future outlook Business Review & Outlook H1 2024 revenue grew 80.1% due to business restructuring and new therapeutic services, with core businesses now including dental, dermatological aesthetic, and health product trading, focusing on high-potential markets in mainland China and Hong Kong - The primary reason for revenue growth in H1 2024 was a change in business structure, consolidating the financial statements of a joint venture (Queen's Road Medical Company Limited), which added therapeutic services and health product revenue from Hong Kong[66][69] - The Group believes the market potential for dental implant and dermatological aesthetic therapeutic services in mainland China and Hong Kong is immense, and its existing business model has proven viable and effective[68][70] - Future efforts will focus resources on supporting the continuous development of dental and dermatological aesthetic therapeutic services, while continuing to seek M&A and cooperation opportunities in Hong Kong, the Greater Bay Area, and ASEAN[71][96] Financial Review Current period financial performance was strong, with total revenue growing 80.1% to S$2.357 million, driven by new services and trading sales, while costs decreased, other operating expenses increased by 17.0%, leading to a S$0.879 million profit, reversing a prior-year loss Revenue Analysis Total revenue grew 80.1% to S$2.357 million, with new therapeutic services contributing S$0.621 million, dental services stable at S$0.916 million, and trading sales significantly up 100.5% to S$0.82 million H1 2024 Revenue Composition and YoY Change (S$ thousand) | Business Segment | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Therapeutic services | 621 | – | New | | Dental services | 916 | 900 | +1.8% | | Trading sales | 820 | 409 | +100.5% | | Total | 2,357 | 1,309 | +80.1% | Costs and Expenses Analysis Costs of consumables and medical supplies decreased from S$0.677 million to S$0.519 million, employee benefit expenses decreased to S$1.119 million due to reduced directors' remuneration, while other operating expenses increased by 17.0% to S$1.822 million due to higher professional fees - Costs of consumables and medical supplies decreased from S$0.677 million to S$0.519 million[78] - Employee benefit expenses decreased from S$1.449 million to S$1.119 million, with directors' remuneration significantly decreasing from S$0.663 million to S$0.202 million[86] - Other operating expenses increased by 17.0% to S$1.822 million, primarily including rent, administrative fees, professional, and consulting fees[91] Profitability Analysis The Group's profitability significantly improved, turning from a S$2.794 million loss to a S$0.879 million profit, a 131.5% increase, primarily due to substantial revenue growth and a S$2.644 million reversal of impairment losses - Other operating income significantly increased from S$0.562 million to S$2.833 million, primarily due to a S$2.644 million reversal of impairment losses[31][79] - Considering all factors, the Group achieved a profit of S$0.879 million compared to a loss of S$2.794 million in the prior period, an increase of S$3.673 million, a growth of 131.5%[91] Capital Structure, Liquidity and Financial Resources As of June 30, 2024, the Group's capital structure solely comprised ordinary shares, with total deficit expanding to S$17.421 million and net current liabilities increasing to S$18.063 million, and the debt-to-asset ratio rising from 133.1% to 154.6%, despite positive operating cash flow Liquidity and Capital Structure Metrics | Metric (S$ thousand) | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Bank balances and cash | 558 | 306 | | Net current liabilities | (18,063) | (12,102) | | Total deficit | (17,421) | (12,519) | | Debt-to-asset ratio | 154.6% | 133.1% | Corporate Governance and Other Information This section details the Group's corporate governance practices and other relevant information, including directors' and substantial shareholders' interests, and the share option scheme Directors' and Substantial Shareholders' Interests As of June 30, 2024, Director Mr. Li Zongshun held 0.45% of shares, while substantial shareholders Dr. Loh Teck Hiong held 15.77% through Brisk Success, and Mr. Li Mingcheng held 9.98% through HK MZ Health Investment Management Group Limited - Director Mr. Li Zongshun beneficially owned 6,000,000 shares of the Company, representing 0.45% of the total share capital[98] - Substantial shareholder Dr. Loh Teck Hiong (through Brisk Success) was deemed to have an interest in 210,024,000 shares, representing 15.77% of the total share capital[104] - Substantial shareholder Mr. Li Mingcheng (through HK MZ Health Investment Management Group Limited) was deemed to have an interest in 132,968,000 shares, representing 9.98% of the total share capital[104] Share Option Scheme The company adopted a share option scheme on September 22, 2017, with 60,000,000 options granted to directors on September 29, 2022, at HK$0.109 per share, valid until September 28, 2032, with no changes in options during H1 2024 - On September 29, 2022, a total of 60,000,000 share options were granted at an exercise price of HK$0.109, with an exercise period from September 29, 2022 to September 28, 2032[107][108] - For the six months ended June 30, 2024, there were no changes in the number of share options granted (no grants, exercises, lapses, or cancellations)[108] Audit Committee The Audit Committee comprises three independent non-executive directors, chaired by Mr. Zhou Yingnan, responsible for overseeing financial reporting and internal controls, and has reviewed the unaudited condensed consolidated financial statements for H1 2024 - The Audit Committee comprises three independent non-executive directors, meeting GEM Listing Rules requirements[119] - The Audit Committee has reviewed the unaudited financial statements for the current period and provided its comments[120]