Financial Performance - The Group recorded total revenue of HK$16,112,000 for the six months ended 30 June 2021, a decrease of 23.5% compared to HK$20,956,000 for the same period in 2020 [26]. - The Group incurred a loss of HK$20,851,000 during the period, compared to a profit of HK$16,039,000 in the previous year, marking a significant downturn in financial performance [26]. - The basic and diluted loss per share was HK$0.54 cents, compared to earnings per share of HK$0.41 cents and HK$0.11 cents in the same period last year [27]. - The Group recorded net current assets of approximately HK$120,516,000 as of June 30, 2021, down from HK$156,120,000 at the end of 2020 [152]. - Cash and bank balances were approximately HK$20,300,000 as of June 30, 2021, compared to HK$40,797,000 at the end of 2020 [152]. Business Operations - The company is focusing on expanding its longevity science business, alongside its existing operations in money lending, securities, and property investment [13]. - The company aims to capture the growth potential of the longevity science industry through business diversification [13]. - The longevity science business generated revenue of HK$7.2 million and a net profit of HK$2.84 million, providing a cushion against overall losses [26]. - The Group's property investment business has not yet generated any revenue as all properties acquired during the review period remain vacant [81]. - The Group is in the process of renewing its money lenders license, which is crucial for continuing its lending operations [39]. Investment and Acquisitions - The Group acquired two examination centers in January 2021, enhancing its longevity medical testing capabilities with 19 categories of testing platforms [107]. - A memorandum of understanding was signed to acquire Asian Integrated Cell Laboratory Limited, a major FDA-registered international auto-immune cell bank, to advance cell therapies and pharmaceuticals [108]. - The Group acquired Banderland Development for RMB 154 million, which holds a 55% equity interest in Hangzhou Chengnan Hospital, enhancing its medical service capabilities [120]. - The Group plans to establish longevity medical testing centers in 18 first and second-tier cities in China over the next three years through mergers and acquisitions [146]. Research and Development - The Group appointed Nobel laureate Randy Wayne Schekman as Honorary Chairman and Chief Scientist to enhance its R&D capabilities [94]. - The scientific research team advanced the R&D of "ZJ1" to the seventh generation, introducing longevity functional beverages to promote health and longevity [122]. - The patents for the Group's early cancer screening inventions have been approved, enhancing its position in cancer prevention and early screening [107]. - The Group's two cancer early screening patents have been approved, significantly improving the effectiveness and accuracy of cancer screening [109]. - A strategic partnership was formed with Thermo Fisher Scientific to enhance the Group's R&D capabilities in longevity science and medical diagnostics [130]. Market Outlook - The longevity science industry is projected to flourish, with increasing public awareness of health and longevity post-COVID-19 pandemic [133]. - The longevity supplement market in China is projected to reach RMB 27 billion by 2023, growing at nearly 70% year-on-year [147]. - The management is confident in the business performance for the second half of the year, expecting the longevity science business to drive revenue growth [132]. Challenges and Risks - The money lending business did not generate any interest income during the period, a decline from HK$536,000 in the same period of 2020 [39]. - The Group has engaged legal advisors to pursue outstanding loans and interest receivables, indicating ongoing challenges in loan recovery [41]. - The segment profit for the same period was approximately HK$4,220,000, down from HK$19,102,000 in the previous year, attributed to a decrease in outstanding loans and interest receivables [43]. - The Group has not recognized any impairment provision for the six months ended June 30, 2021, compared to HK$120,000 for the same period in 2020 [43]. Corporate Governance - The Group's total number of issued ordinary shares remained at 3,870,102,650 as of June 30, 2021 [152]. - The Group did not have any capital commitments as of June 30, 2021, consistent with December 31, 2020 [193][194]. - There were no material contingent liabilities reported as of June 30, 2021, similar to the situation on December 31, 2020 [193][194]. - The Group has not implemented any foreign currency hedging policy but continuously monitors foreign exchange exposure due to fluctuations in Renminbi [190][192]. Shareholding Structure - Mr. Yan Li holds 9,200,000,000 shares in long position, representing 237.72% of the total shares as of June 30, 2021 [198]. - The beneficial ownership of Mr. Yan Li is 184,030,000 shares in long position, accounting for 4.76% of the total shares [198]. - Ms. Cao Xie Qiong holds 41,540,000 shares in long position, which is 1.07% of the total shares [198]. - As of June 30, 2021, no other directors or chief executives had interests or short positions in any shares or debentures of the company [199].
中基长寿科学(00767) - 2021 - 中期财报