北京健康(02389) - 2021 - 中期财报

Unaudited Interim Financial Information Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2021, the company recorded a loss for the period of HK$11,445 thousand, a significant narrowing compared to the same period last year, with total comprehensive loss also significantly reduced and basic and diluted loss per share at HK(0.20) cents Table: Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 79,619 | 65,355 | | Gross profit | 22,554 | 13,853 | | Other income and gains, net | 41,456 | 37,382 | | Loss before tax | (18,035) | (79,832) | | Income tax credit/(expense) | 6,590 | (2,384) | | Loss for the period | (11,445) | (82,216) | | Total comprehensive loss for the period | (17,609) | (128,869) | | Loss for the period attributable to owners of the parent | (12,318) | (75,699) | | Loss per share attributable to ordinary equity holders of the parent (basic and diluted) | HK(0.20) cents | HK(1.25) cents | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2021, the Group's total assets slightly decreased, with total non-current assets at HK$2,041,844 thousand and total current assets at HK$735,628 thousand, resulting in net assets of HK$2,474,626 thousand, a slight reduction from the end of 2020 Table: Interim Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2021 (HK$ thousand) | December 31, 2020 (HK$ thousand) | | :--- | :--- | :--- | | Total non-current assets | 2,041,844 | 2,069,233 | | Total current assets | 735,628 | 739,380 | | Total current liabilities | 200,268 | 220,745 | | Total non-current liabilities | 102,578 | 96,828 | | Net assets | 2,474,626 | 2,491,040 | | Equity attributable to owners of the parent | 2,270,492 | 2,281,838 | | Non-controlling interests | 204,134 | 209,202 | | Total equity | 2,474,626 | 2,491,040 | Interim Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2021, the Group's total equity decreased from HK$2,491,040 thousand at the beginning of the period to HK$2,474,626 thousand, primarily due to the loss for the period and changes in other comprehensive income Table: Interim Condensed Consolidated Statement of Changes in Equity | Indicator | January 1, 2021 (HK$ thousand) | June 30, 2021 (HK$ thousand) | | :--- | :--- | :--- | | Equity attributable to owners of the parent | 2,281,838 | 2,270,492 | | Non-controlling interests | 209,202 | 204,134 | | Total equity | 2,491,040 | 2,474,626 | | Loss for the period (attributable to owners of the parent) | - | (12,318) | | Other comprehensive income/(loss) for the period (attributable to owners of the parent) | - | (253) | | Total comprehensive loss for the period (attributable to owners of the parent) | - | (12,541) | Interim Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2021, the Group reported net cash outflow from operating activities of HK$48,266 thousand, net cash inflow from investing activities of HK$6,906 thousand, and net cash outflow from financing activities of HK$5,088 thousand, resulting in a net decrease in cash and cash equivalents of HK$46,448 thousand Table: Interim Condensed Consolidated Statement of Cash Flows | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Net cash flows used in operating activities | (48,266) | (72,866) | | Net cash flows from investing activities | 6,906 | 127,848 | | Net cash flows used in financing activities | (5,088) | (75,585) | | Net decrease in cash and cash equivalents | (46,448) | (20,603) | | Cash and cash equivalents at end of period | 436,231 | 430,405 | Notes to Interim Condensed Consolidated Financial Information This section provides detailed notes to the interim condensed consolidated financial information for the six months ended June 30, 2021, covering corporate information, accounting policies, operating segments, revenue, expenses, assets and liabilities, share capital, share options, disposal of a subsidiary, pledge of assets, commitments, related party transactions, fair value of financial instruments, and events after the reporting period 1. Corporate Information Beijing Health (Holdings) Limited is incorporated in the Cayman Islands and listed on the Main Board of the Hong Kong Stock Exchange, with the Group primarily providing medical, health, and elderly care-related services and products in China - The company was incorporated in the Cayman Islands, and its shares have been listed on the Main Board of the Hong Kong Stock Exchange since April 26, 2002[243][246] - The Group's principal business is providing medical, health, and elderly care-related services and products in China[244][246] 2. Basis of Preparation and Accounting Policies The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 and Appendix 16 of the Listing Rules, incorporating the first-time adoption of revised Hong Kong Financial Reporting Standards, including amendments related to interest rate benchmark reform Phase 2 and Covid-19-related rent concessions - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and Appendix 16 of the Listing Rules[245] - First-time adoptions include amendments to HKFRS 9 and other standards regarding interest rate benchmark reform Phase 2, and amendments to HKFRS 16 concerning Covid-19-related rent concessions[250][251][252] - The interest rate benchmark reform amendments had no impact on the Group's financial position and performance, as the Group has no related interest-bearing borrowings[255] - The Covid-19-related rent concession amendments had no impact on the Group's financial position and performance, as the Group did not receive rent concessions[255] 3. Operating Segment Information The Group has a single operating and reportable segment, which is the provision of medical, health, and elderly care-related services and products, with all revenue derived from customers in Mainland China and most non-current assets located there - The Group's single operating segment is the provision of medical, health, and elderly care-related services and products[257] - In the first half of 2021, 100% of revenue was derived from customers in Mainland China (first half of 2020: 98%)[257] - Over 78% of non-current assets (excluding financial instruments and deferred tax assets) are located in Mainland China (December 31, 2020: over 80%)[257] - Approximately HK$11,017 thousand in revenue was derived from a single customer (first half of 2020: HK$8,050 thousand)[258] 4. Revenue For the six months ended June 30, 2021, the Group's total revenue was HK$79,619 thousand, representing a 21.8% increase year-on-year, primarily from sales of goods and provision of services, with all revenue originating from Mainland China Table: Revenue by Source and Geographic Market | Revenue Source | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Total revenue from contracts with customers | 79,619 | 65,355 | | - Sales of goods | 75,662 | 64,137 | | - Provision of services | 3,957 | 1,218 | | Geographic Market (Mainland China) | 79,619 | 63,786 | | Geographic Market (Middle East) | – | 1,569 | - Revenue from sales of goods is recognized at a point in time, while revenue from provision of services is recognized over time as services are transferred[265] 5. Other Income and Gains, Net For the six months ended June 30, 2021, the Group's other income and gains, net, amounted to HK$41,456 thousand, a 10.9% increase year-on-year, primarily driven by bank interest income, rental income, reversal of impairment loss on investment in an associate, and foreign exchange gains Table: Other Income and Gains, Net | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Bank interest income | 2,469 | 6,556 | | Other interest and investment income | 14,237 | 13,673 | | Gross rental income from investment properties under operating leases | 4,593 | 3,557 | | Dividend income | 1,246 | – | | Miscellaneous income | 789 | 716 | | Loss on disposal of property, plant and equipment | – | (2) | | Net fair value loss on investment properties | (959) | (1,215) | | Net fair value (loss)/gain on financial assets at fair value through profit or loss | (3,022) | 10,606 | | Gain on disposal of an associate | – | 3,491 | | Net exchange differences | 8,576 | – | | Reversal of impairment loss on investment in an associate | 13,527 | – | | Total other income and gains, net | 41,456 | 37,382 | 6. Finance Costs For the six months ended June 30, 2021, the Group's finance costs were HK$949 thousand, a 23.5% decrease year-on-year, primarily comprising interest on bank and other borrowings and interest on lease liabilities Table: Finance Costs | Finance Cost Item | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 645 | 848 | | Interest on lease liabilities | 304 | 392 | | Total finance costs | 949 | 1,240 | 7. Loss Before Tax For the six months ended June 30, 2021, the Group's loss before tax was HK$18,035 thousand, a significant narrowing compared to the same period last year, primarily influenced by cost of sales, depreciation, exchange differences, and impairment of financial assets Table: Items Affecting Loss Before Tax | Item | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 54,715 | 50,013 | | Cost of services provided | 2,350 | 1,489 | | Depreciation of property, plant and equipment | 5,610 | 5,866 | | Depreciation of right-of-use assets | 11,768 | 9,924 | | Net exchange differences | (8,576) | 20,149 | | Impairment of trade receivables | 1,106 | 827 | | Impairment of debt investments at fair value through other comprehensive income | – | 1,755 | | Loss on disposal of a subsidiary | – | 27,337 | | Loss on deemed partial disposal of an associate | 5,291 | – | 8. Income Tax (Credit)/Expense For the six months ended June 30, 2021, the Group recorded an income tax credit of HK$6,590 thousand, primarily due to the reversal of over-provision for PRC enterprise income tax in prior periods Table: Income Tax (Credit)/Expense | Item | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | PRC enterprise income tax (current period expense) | 287 | 10 | | PRC enterprise income tax (over-provision in prior periods) | (5,677) | – | | Deferred tax | (1,200) | 2,374 | | Total tax (credit)/expense for the period | (6,590) | 2,384 | - No provision for Hong Kong profits tax was made as no assessable profits arose in Hong Kong during the period[286][287] 9. Dividend The company's directors do not recommend the payment of an interim dividend to shareholders for the six months ended June 30, 2021 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2021 (2020: nil)[289] 10. Loss Per Share Attributable to Ordinary Equity Holders of the Parent For the six months ended June 30, 2021, the basic and diluted loss per share attributable to ordinary equity holders of the parent was HK(0.20) cents, a significant improvement from HK(1.25) cents in the prior year Table: Loss Per Share Attributable to Ordinary Equity Holders of the Parent | Indicator | First Half 2021 | First Half 2020 | | :--- | :--- | :--- | | Unaudited loss for the period attributable to ordinary equity holders of the parent | HK$12,318 thousand | HK$75,699 thousand | | Weighted average number of ordinary shares in issue during the period | 6,078,944,027 shares | 6,078,944,027 shares | | Basic and diluted loss per share | HK(0.20) cents | HK(1.25) cents | - No adjustment was made for unexercised share options as they had no dilutive effect on the basic loss per share amount[291] 11. Property, Plant and Equipment For the six months ended June 30, 2021, the Group acquired property, plant and equipment at a total cost of HK$2,250 thousand and disposed of property, plant and equipment with a total net book value of HK$19 thousand Table: Property, Plant and Equipment Acquisitions and Disposals | Item | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Total cost of property, plant and equipment acquired | 2,250 | 6,251 | | Net book value of property, plant and equipment disposed of | 19 | 4 | | Net loss on disposal | 0 | 2 | 12. Trade and Bills Receivables As of June 30, 2021, the Group's total trade receivables amounted to HK$34,639 thousand, with HK$19,008 thousand due within six months, and bills receivables at nil Table: Ageing Analysis of Trade and Bills Receivables | Ageing | June 30, 2021 (HK$ thousand) | December 31, 2020 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables: within six months | 19,008 | 26,593 | | Trade receivables: seven to twelve months | 10,311 | 3,126 | | Trade receivables: thirteen to eighteen months | 3,002 | 3,025 | | Trade receivables: nineteen to twenty-four months | 2,318 | 731 | | Bills receivables | – | 1,069 | | Total | 34,639 | 34,544 | 13. Trade Payables As of June 30, 2021, the Group's total trade payables were HK$23,195 thousand, with HK$14,603 thousand due within three months, and trade payables are non-interest bearing, typically settled within three to six months Table: Ageing Analysis of Trade Payables | Ageing | June 30, 2021 (HK$ thousand) | December 31, 2020 (HK$ thousand) | | :--- | :--- | :--- | | Within three months | 14,603 | 18,377 | | Over three months | 8,592 | 15,947 | | Total | 23,195 | 34,324 | - Trade payables are non-interest bearing and are normally settled on terms of three to six months[296] 14. Share Capital As of June 30, 2021, the company's authorized share capital was 10,000,000,000 ordinary shares of HK$0.2 each, with issued and fully paid share capital of 6,078,944,027 shares totaling HK$1,215,789 thousand, remaining unchanged from the end of 2020 Table: Share Capital | Share Capital Type | June 30, 2021 (HK$ thousand) | December 31, 2020 (HK$ thousand) | | :--- | :--- | :--- | | Authorized share capital (10,000,000,000 shares of HK$0.2 each) | 2,000,000 | 2,000,000 | | Issued and fully paid share capital (6,078,944,027 shares of HK$0.2 each) | 1,215,789 | 1,215,789 | 15. Share-Based Compensation Schemes The company adopted a new share option scheme in 2013 to replace the 2002 scheme; as of June 30, 2021, 278,000,000 share options remained unexercised, with 60,000,000 options cancelled during the period and HK$9,649 thousand transferred from the share option reserve to accumulated losses - The company adopted a new share option scheme on May 24, 2013, replacing the 2002 scheme[304] - During the period, 60,000,000 share options under the 2013 scheme were cancelled, and HK$9,649 thousand was transferred from the share option reserve to accumulated losses[304] Table: Number of Unexercised Share Options | Share Option Category | Number of Unexercised Share Options as of June 30, 2021 (thousand options) | Number of Unexercised Share Options as of December 31, 2020 (thousand options) | | :--- | :--- | :--- | | Total | 278,000 | 338,000 | - As of the end of the reporting period, the company had 278,000,000 unexercised share options, the full exercise of which would result in the issuance of additional ordinary shares representing approximately 4.6% of the issued shares[307] 16. Disposal of a Subsidiary In the first half of 2020, the Group disposed of a subsidiary, resulting in a loss of HK$27,337 thousand and cash consideration of HK$197,347 thousand Table: Disposal of a Subsidiary (First Half 2020) | Item | First Half 2020 (HK$ thousand) | | :--- | :--- | | Net assets disposed of | 216,136 | | Exchange fluctuation reserve | 8,548 | | Loss on disposal of a subsidiary | (27,337) | | Cash consideration | 197,347 | | Net cash and cash equivalents inflow | 197,347 | - Inter-group payables of HK$123,670 thousand were offset and paid by the buyer as part of the disposal transaction[310] 17. Pledge of Assets As of June 30, 2021, the Group's bank loans were secured by properties within property, plant and equipment with a total carrying value of HK$49,420 thousand, and a new bank facility of RMB180,000 thousand was secured by land use rights within right-of-use assets with a total carrying value of HK$383,051 thousand - As of June 30, 2021, the Group's bank loans were secured by properties within property, plant and equipment with a total carrying value of HK$49,420 thousand (December 31, 2020: HK$52,495 thousand)[315] - A new bank facility of RMB180,000 thousand was secured by land use rights within right-of-use assets with a total carrying value of HK$383,051 thousand (December 31, 2020: nil)[315] 18. Commitments As of June 30, 2021, the Group's total capital commitments amounted to HK$81,112 thousand, primarily comprising contracted but not provided amounts for land and buildings and properties under development Table: Capital Commitments | Commitment Item | June 30, 2021 (HK$ thousand) | December 31, 2020 (HK$ thousand) | | :--- | :--- | :--- | | Land and buildings | 58,309 | 55,215 | | Properties under development | 22,803 | 22,588 | | Total | 81,112 | 77,803 | 19. Related Party Disclosures This section discloses the Group's related party transactions during the period, including interest income from a company jointly controlled by the company's directors and key management personnel compensation Table: Related Party Transactions | Transaction Type | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Interest income from a company jointly controlled by a director of the company | – | 3,792 | - On July 9, 2020, the company entered into a loan capitalization agreement with 1121695 B.C. Ltd. to capitalize a CAD13,400,000 loan and its accrued interest into shares of 1121695 B.C. Ltd., making it a joint venture of the Group[323][327] Table: Key Management Personnel Compensation | Key Management Personnel Compensation Item | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Salaries, allowances and benefits in kind | 3,665 | 3,584 | | Performance-related bonuses | 117 | 197 | | Contributions to pension schemes | 98 | 108 | | Total | 3,880 | 3,889 | 20. Fair Value and Fair Value Hierarchy of Financial Instruments This section discloses the carrying amounts, fair values, and fair value hierarchy of the Group's financial instruments, with total fair value of financial assets at HK$350,051 thousand, primarily comprising equity investments and debt investments designated at fair value through other comprehensive income Table: Carrying Amounts and Fair Values of Financial Instruments | Financial Asset Item | Carrying Amount June 30, 2021 (HK$ thousand) | Carrying Amount December 31, 2020 (HK$ thousand) | Fair Value June 30, 2021 (HK$ thousand) | Fair Value December 31, 2020 (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Equity investments designated at fair value through other comprehensive income | 281,251 | 303,986 | 281,251 | 303,986 | | Debt investments at fair value through other comprehensive income | 41,365 | 42,375 | 41,365 | 42,375 | | Bills receivable | – | 1,069 | – | 1,069 | | Financial assets at fair value through profit or loss | 27,435 | 28,312 | 27,435 | 28,312 | | Total | 350,051 | 375,742 | 350,051 | 375,742 | - Management assesses that the fair values of short-term instruments such as cash and cash equivalents, restricted bank balances, and trade receivables approximate their carrying amounts[331] - Fair value measurement hierarchy is categorized into Level 1 (quoted prices in active markets), Level 2 (significant observable inputs), and Level 3 (significant unobservable inputs)[347] Table: Fair Value Hierarchy of Financial Instruments (June 30, 2021) | Financial Instrument Category (June 30, 2021) | Level 1 (HK$ thousand) | Level 2 (HK$ thousand) | Level 3 (HK$ thousand) | Total (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Equity investments designated at fair value through other comprehensive income | 49,849 | 167,586 | 63,816 | 281,251 | | Debt investments at fair value through other comprehensive income | 41,365 | – | – | 41,365 | | Financial assets at fair value through profit or loss | 2,809 | 5,192 | 19,434 | 27,435 | | Total | 94,023 | 172,778 | 83,250 | 350,051 | - During the period, there were no transfers between Level 1 and Level 2, and no transfers into or out of Level 3[353] 21. Events After the Reporting Period Subsequent to the reporting period, on July 6, 2021, the Group subscribed to a structured deposit issued by Xiamen International Bank for RMB60 million (approximately HK$72 million), which guarantees principal and is linked to the EUR/USD exchange rate, maturing on July 6, 2022 - On July 6, 2021, the Group subscribed to a structured deposit issued by Xiamen International Bank for RMB60 million (approximately HK$72 million)[361][363] - This structured deposit guarantees principal, has a floating return rate linked to the EUR/USD exchange rate, and will mature on July 6, 2022[361][363] 22. Comparative Amounts Certain comparative amounts have been reclassified to conform with the current period's presentation - Certain comparative amounts have been reclassified to conform with the current period's presentation[362][364] 23. Approval of the Interim Financial Information This interim condensed consolidated financial information was approved and authorized for issue by the Board of Directors on August 27, 2021 - The interim condensed consolidated financial information was approved and authorized for issue by the Board of Directors on August 27, 2021[366] Management Discussion and Analysis Business Review In the first half of 2021, the Group continued to develop its core businesses, including geriatric care, health industrial park, and medical and geriatric product sales, with improved occupancy rates in elderly care facilities, steady progress in health industrial park projects, and increased technological content in medical and geriatric product sales Geriatric Care Business In the first half of 2021, the Group's geriatric care facilities maintained stable operations with increasing occupancy rates, and the integrated medical-elderly care model gained widespread market recognition, operating 5 facilities with a total of 1,035 beds and achieving a 23.63% year-on-year increase in operating revenue - In the first half of 2021, the Group's geriatric care facilities maintained stable operations with continuously increasing occupancy rates, and the integrated medical-elderly care model gained widespread market recognition[368][371] - The Group operates 5 geriatric care facilities with a total of 1,035 beds (primarily in the Yangtze River Delta region)[368][371] Table: Geriatric Care Business Operating Revenue | Indicator | First Half 2021 | First Half 2020 | | :--- | :--- | :--- | | Operating Revenue (RMB) | RMB15.85 million | RMB12.82 million | | Year-on-year growth | 23.63% | - | - Wuxi Liangxi District Guangyi Elderly Care Center and Fuma Nursing Home achieved 100% occupancy (285 beds)[370] - Changzhou Xinbei District Xuejia Aixin Nursing Home had an occupancy rate of 32% (newly opened, 375 beds)[375] Health Industrial Park Business The Group acquires prime land in first-tier cities like Beijing and Shanghai to develop new business formats such as corporate headquarters and health industrial parks; as of June 30, 2021, the Group participated in six projects with a total land area exceeding 400,000 square meters, demonstrating significant potential for commercial value enhancement - The Group primarily acquires prime land in first-tier cities like Beijing and Shanghai, focusing on developing new business formats such as corporate headquarters and health industrial parks[379][381] - As of June 30, 2021, the Group participated in six projects across Beijing, Shanghai, Dali, and Canada, with a total land area exceeding 400,000 square meters[380][381] - Implementation plans for each project have received local government support, project positioning aligns with market demand, and there is significant potential for commercial value enhancement[380][381] Table: Health Industrial Park Projects | Location | Project Name | Land Area (sqm) | Equity Stake | Project Progress | | :--- | :--- | :--- | :--- | :--- | | Beijing | Chaoyang Port Project | 87,607 | 82.24% | Aligns with international development trends, meets Beijing urban planning secondary distribution center needs, creating a "Beijing Urban Center Green Innovation Smart Integrated Cluster" | | Shanghai | Sanlu Road Project | 20,480 | 20% | Property leasing and operation in progress | | Shanghai | Hongmei Road Project | 39,448 | 100% | Planned to become a new architectural landmark in the area, serving and meeting surrounding residents' demand for quality living, becoming a community gathering space, creating a "Health, Green, Community, Family Commercial Complex" | | Canada | Ovation | 2,425 | Not applicable (debt investment) | Presales started in April 2019, approximately 60% of saleable area sold to date | | Canada | Royal Tower | 10,588 | 47.47% | Preparing applications for rezoning of project land and seeking suitable partners | Sale of Medical and Geriatric Products The Group's subsidiary, Weisen Shengye Company, continues to specialize in the professional furniture industry for elderly care, medical, and education sectors, centering products on 'human health needs,' and in the first half of 2021, obtained 2 patents, 1 copyright registration, and 3 software copyrights, continuously enhancing the company's technological content - Beijing Weisen Shengye Furniture Co Ltd continues to specialize in the professional furniture industry for elderly care, medical, and education sectors, with 'human health needs' as the core of its products[387][388] - In the first half of 2021, Weisen Shengye obtained 2 patents, 1 copyright registration, and 3 software copyrights, continuously enhancing the company's technological content[389] Future Prospect Facing a deeply aging society, the Group will actively develop institutional elderly care businesses, identify suitable projects for bidding or M&A, and plan high-end medical and elderly care apartments; medical and elderly care product sales are expected to recover to 2019 levels in the second half, while the Group will continue to advance health industrial park approval processes, accelerate project turnover, strictly control costs, prudently manage its own funds, and enhance free cash returns through investments - China's population aged 60 and above accounts for approximately 18.70% of the total, a 5.44% year-on-year increase, forming a deeply aging society[391][393] - The Group will actively develop institutional elderly care businesses, identify suitable projects for bidding or M&A, and plan a high-end medical and elderly care apartment in Wuxi, China, covering 25 mu with 260 beds[391][393] - For medical and elderly care product sales, business volume is expected to return to 2019 levels in the second half of the year[391][393] - The Group will continue to advance government approval processes for health industrial parks, accelerate project turnover, and provide sustained cash flow for institutional elderly care businesses[391][393] - The Group's overall strategy includes strict cost control, optimizing cost-effectiveness, prudent management of own funds, and enhancing free cash returns through appropriate bank wealth management, stock, and bond investments to strengthen financial position[392][394] Material Investments For the period ended June 30, 2021, the Group made no new material investments outside of its ordinary course of business, and while actively seeking suitable investments with potential and synergistic effects, no material investment agreements had been entered into as of the interim report date - For the period ended June 30, 2021, no new material investments were made outside of the ordinary course of business[396][401] - The Group is actively seeking and exploring potential and synergistic suitable investments, but no material investment agreements had been entered into as of the interim report date[397][401] Financial Review This section provides a detailed review of the Group's financial performance in the first half of 2021, including operating revenue growth, cost of sales control, gross profit margin improvement, changes in other income and gains, fluctuations in various expenses, and the status of liquidity, capital structure, and capital expenditure Operating Revenue In the first half of 2021, the Group's operating revenue was HK$79,619 thousand, a 21.8% year-on-year increase, primarily due to the gradual recovery of medical and geriatric product sales to pre-pandemic levels Table: Operating Revenue | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Operating Revenue | 79,619 | 65,355 | | Year-on-year growth | 21.8% | - | | Medical and geriatric product sales revenue | 75,662 | 64,137 | | Medical and geriatric product sales revenue year-on-year growth | 18% | - | - The increase in operating revenue was primarily due to the gradual recovery of medical and geriatric product sales to pre-pandemic levels[398][402] Cost of Sales In the first half of 2021, cost of sales was HK$57,065 thousand, a 10.8% year-on-year increase, primarily comprising procurement costs, freight, installation fees, and staff costs Table: Cost of Sales | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Cost of Sales | 57,065 | 51,502 | | Year-on-year growth | 10.8% | - | - Cost of sales primarily includes procurement costs, freight, installation fees, and staff costs[399][403] Gross Profit Margin In the first half of 2021, the Group's overall gross profit margin was 28.3%, an increase of 7.1 percentage points from 21.2% in the prior year, primarily due to the Group adjusting its product order mix to reduce lower-margin contracts Table: Gross Profit Margin | Indicator | First Half 2021 | First Half 2020 | | :--- | :--- | :--- | | Gross Profit Margin | 28.3% | 21.2% | | Year-on-year change | Up 7.1 percentage points | - | - The increase in gross profit margin was primarily due to the Group adjusting its product order mix and reducing lower-margin contracts[400][404] Other Income and Gains, Net In the first half of 2021, other income and gains amounted to HK$41,456 thousand, a 10.9% year-on-year increase, primarily including bank interest and investment income, rental income, reversal of impairment on investment in an associate, and foreign exchange gains Table: Other Income and Gains, Net | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Other Income and Gains | 41,456 | 37,382 | | Year-on-year growth | 10.9% | - | | Bank interest and other interest and investment income | 15,622 | 20,229 | | Rental income | 4,593 | 3,557 | | Reversal of impairment on investment in an associate | 13,527 | – | | Foreign exchange gains | 8,576 | (20,149) (loss) | | Fair value impairment of financial assets at fair value through profit or loss | 3,022 | 10,606 (gain) | Selling and Distribution Expenses In the first half of 2021, selling and distribution expenses were HK$5,691 thousand, a significant 64.1% year-on-year decrease, representing 7.1% of total sales, primarily due to the absence of intermediary commission fees from the disposal of a subsidiary during the period Table: Selling and Distribution Expenses | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Selling and Distribution Expenses | 5,691 | 15,849 | | Percentage of total sales | 7.1% | 24.3% | | Staff costs | 3,590 | 4,387 | | Promotion expenses | 491 | 420 | | Intermediary commission fees | – | 9,775 | - The significant decrease in selling and distribution expenses was primarily due to the absence of intermediary commission fees arising from the disposal of a subsidiary during the period[408][410] Administrative Expenses In the first half of 2021, administrative expenses were HK$63,293 thousand, a 16.4% year-on-year increase, primarily due to staff remuneration recovering to pre-pandemic levels, leading to higher staff costs Table: Administrative Expenses | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Administrative Expenses | 63,293 | 54,368 | | Year-on-year growth | 16.4% | - | | Staff costs (including directors' emoluments) | 23,205 | 19,327 | | Professional and consulting fees | 4,843 | 6,163 | | Depreciation expenses | 17,378 | 15,790 | | Repair and maintenance expenses | 4,282 | – | - The increase in administrative expenses was mainly due to staff remuneration gradually recovering to pre-pandemic levels in the first half of 2021, leading to an increase in staff costs of HK$3,878 thousand[412][413] Impairment Losses of Financial Assets Impairment losses of financial assets decreased by HK$1,476 thousand, primarily because no additional impairment provision was required for the Group's bond investments during the period Table: Impairment Losses of Financial Assets | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Impairment Losses of Financial Assets | 1,106 | 2,582 | | Year-on-year decrease | 1,476 | - | - The decrease in impairment losses was mainly due to no additional impairment provision being required for the Group's bond investments during the period (2020: HK$1,755 thousand)[414][415] Other Expenses and Losses In the first half of 2021, other expenses and losses amounted to HK$5,356 thousand, primarily representing losses from the deemed partial disposal of an associate; this item significantly decreased year-on-year, mainly due to no loss from disposal of a subsidiary during the period and foreign exchange gains from the appreciation of RMB and CAD assets Table: Other Expenses and Losses | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Other Expenses and Losses | 5,356 | 47,486 | | Loss on deemed partial disposal of an associate | 5,291 | – | | Foreign exchange losses | – | 20,149 | | Loss arising from disposal of a subsidiary | – | 27,337 | - The significant decrease in other expenses and losses was primarily due to the absence of losses from the disposal of a subsidiary by the Group during the period, and the foreign exchange gains arising from the appreciation of the Group's RMB and CAD assets recognized in other income and gains, net[417][418] Finance Cost In the first half of 2021, total finance costs were HK$949 thousand, a 23.5% decrease year-on-year, primarily due to a reduction in the Group's weighted average borrowing balance Table: Total Finance Costs | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Total Finance Costs | 949 | 1,240 | | Year-on-year decrease | 23.5% | - | - The decrease in finance costs was primarily due to a reduction in the Group's weighted average borrowing balance during the period[420] Share of Profits and Losses of Joint Ventures Share of profits and losses of joint ventures primarily represents the Group's 47.47% share of the loss attributable to shareholders of 1121695 B.C. Ltd., amounting to approximately HK$1,083 thousand Table: Share of Profits and Losses of Joint Ventures | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Share of Profits and Losses of Joint Ventures | (1,689) | (1,176) | | Share of loss attributable to shareholders of 1121695 B.C. Ltd. | 1,083 | - | Share of Profits and Losses of Associates Share of profits and losses of associates primarily includes the Group's share of loss attributable to shareholders of Beijing Sports Culture Industry Group Co Ltd of approximately HK$363 thousand and Shanghai Junbo Textile Co Ltd of approximately HK$2,253 thousand Table: Share of Profits and Losses of Associates | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Share of Profits and Losses of Associates | (3,961) | (8,366) | | Share of loss attributable to shareholders of Beijing Sports Culture Industry Group Co Ltd | 363 | 2,912 | | Share of loss attributable to shareholders of Shanghai Junbo Textile Co Ltd | 2,253 | 4,328 | Liquidity and Financial Resources As of June 30, 2021, the Group held cash and cash equivalents of approximately HK$436,231 thousand, with net current assets reaching HK$535,360 thousand and a current ratio of 3.7 times, indicating ample liquidity Table: Liquidity and Financial Resources | Indicator | June 30, 2021 (HK$ thousand) | December 31, 2020 (HK$ thousand) | | :--- | :--- | :--- | | Cash and cash equivalents | 436,231 | 477,420 | | Restricted bank balances | 9,620 | 2,217 | | Interest-bearing bank and other borrowings | 41,338 | 34,930 | | Net current assets | 535,360 | 518,635 | | Current ratio | 3.7 times | - | - The Group maintains sufficient bank credit facilities to meet working capital needs and holds ample cash resources to fund capital expenditures[422] Capital Structure As of June 30, 2021, the company had 6,078,944,027 shares issued, with total equity of approximately HK$2,474,626 thousand, and a debt-to-asset ratio maintained at a low level of 1.5%, indicating a robust capital structure - The Group fully leverages its listed company financing platform to optimize its capital and financing structure, securing sufficient funds for future health and elderly care industry projects[425] - During the period, the Group's business operations were primarily funded through internal resources and bank loans[425] Table: Capital Structure | Indicator | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Number of shares issued | 6,078,944,027 shares | 6,078,944,027 shares | | Equity attributable to shareholders of the company | HK$2,270,492 thousand | HK$2,281,838 thousand | | Total equity | HK$2,474,626 thousand | HK$2,491,040 thousand | | Debt-to-asset ratio (bank and other borrowings divided by total assets) | 1.5% | 1.2% | Capital Expenditure For the six months ended June 30, 2021, the Group's capital expenditure was approximately HK$2,250 thousand, a 55.9% decrease year-on-year, primarily for the acquisition of property, plant and equipment Table: Capital Expenditure | Indicator | First Half 2021 (HK$ thousand) | First Half 2020 (HK$ thousand) | | :--- | :--- | :--- | | Capital Expenditure | 2,250 | 5,105 | | Year-on-year decrease | 55.9% | - | - Capital expenditure was primarily for the acquisition of property, plant and equipment[425] Pledge of Assets As of June 30, 2021, the Group's bank loans were secured by properties within property, plant and equipment with a total carrying value of HK$49,420 thousand, and a new bank facility of RMB180,000 thousand was secured by land use rights with a total carrying value of HK$383,051 thousand - As of June 30, 2021, the Group's bank loans were secured by properties within property, plant and equipment with a total carrying value of HK$49,420 thousand (December 31, 2020: HK$52,495 thousand)[425] - A new bank facility of RMB180,000 thousand was secured by land use rights within right-of-use assets with a total carrying value of HK$383,051 thousand (December 31, 2020: nil)[425] Contingent Liabilities As of June 30, 2021, the Group had no material contingent liabilities - As of June 30, 2021, the Group had no material contingent liabilities[427][430] Foreign Exchange Risk The Group's foreign exchange risk primarily arises from other receivables and investments in joint ventures denominated in CAD, and debt and equity investments at fair value through other comprehensive income denominated in USD; management will continue to monitor foreign exchange risk and implement hedging measures when necessary - The Group's foreign exchange risk primarily arises from other receivables and investments in joint ventures denominated in CAD, and debt and equity investments at fair value through other comprehensive income denominated in USD[428][431] - The Group currently has no arrangements or financial instruments to hedge potential foreign exchange risk, but management will continue to monitor and implement hedging measures when necessary[428][431] Employees and Remuneration Policy As of June 30, 2021, the Group had 241 employees with total staff costs of approximately HK$27,634 thousand; the Group's remuneration policy is market-based, offering benefits such as medical insurance, mandatory provident fund contributions, and social insurance, alongside discretionary performance bonuses, year-end awards, and share option schemes to incentivize employees Table: Employee Information and Staff Costs | Indicator | June 30, 2021 | Same Period 2020 | | :--- | :--- | :--- | | Number of employees | 241 employees | 298 employees | | Total staff costs (including directors' emoluments) | HK$27,634 thousand | HK$24,478 thousand | - The Group's remuneration policy is determined by market levels and provides benefits such as medical insurance, Mandatory Provident Fund contributions, and China social insurance[429] - To motivate and reward employees, the Group has established discretionary performance bonuses and year-end award schemes, as well as share option schemes and employee option schemes[429] Additional Information 1. Directors' and Chief Executive's Interests and Short Positions in Shares and Underlying Shares As of June 30, 2021, the company's directors, chief executive, and their associates held long positions in the company's shares and underlying shares, primarily comprising beneficially owned shares and share options Table: Directors' and Chief Executive's Interests in Shares and Underlying Shares | Director Name | Capacity | Interests in Shares (shares) | Interests in Underlying Shares (shares) | Total Interests in Shares (shares) | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr Wang Zhengchun | Beneficial owner | 5,468,750 | 30,000,000 | 35,468,750 | 0.58% | | Mr Wang Zhengchun | Interest held by spouse | 35,074,000 | – | 35,074,000 | 0.58% | | Mr Wang Zhengchun | Interest held by controlled corporation | 64,811,000 | – | 64,811,000 | 1.07% | | Mr Zhu Shixing | Beneficial owner | - | 30,000,000 | 30,000,000 | 0.49% | | Mr Liu Xueheng | Beneficial owner | - | 30,000,000 | 30,000,000 | 0.49% | | Mr Gu Shanchao | Beneficial owner | - | 30,000,000 | 30,000,000 | 0.49% | | Mr Xiao Jianwei | Beneficial owner | - | 10,000,000 | 10,000,000 | 0.16% | | Mr Zhang Jingming | Beneficial owner | - | 20,000,000 | 20,000,000 | 0.33% | | Mr Hu Xiangqi | Beneficial owner | - | 15,000,000 | 15,000,000 | 0.25% | | Mr Kang Shixue | Beneficial owner | - | 7,000,000 | 7,000,000 | 0.12% | | Mr Wu Yongxin | Beneficial owner | - | 4,000,000 | 4,000,000 | 0.07% | | Mr Tse Man Kit | Beneficial owner | - | 4,000,000 | 4,000,000 | 0.07% | | Mr Zhang Yunzhou | Beneficial owner | - | 2,000,000 | 2,000,000 | 0.03% | - Interests in underlying shares arose from share options granted on April 2, 2015, and January 28, 2016, with exercise prices of HK$0.61 and HK$0.53 per share, respectively[441] 2. Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares As of June 30, 2021, other than directors and the chief executive, the company's substantial shareholders held long positions in the company's shares, with Cosmic Stand International Limited and its controlled corporations holding 15.55%, Beijing Investment Co Ltd and its controlled corporations holding 9.02%, and Jangho Group Company Limited and its controlled corporations holding 5.34% equity Table: Substantial Shareholders' Interests in Shares | Shareholder Name/Name | Capacity | Number of Beneficially Owned Shares (shares) | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Cosmic Stand International Limited | Beneficial owner | 945,000,000 | 15.55% | | Beijing Enterprises Health and Medical Resources Group Limited | Interest held by controlled corporation | 945,000,000 | 15.55% | | Beijing Properties (Holdings) Limited | Interest held by controlled corporation | 945,000,000 | 15.55% | | Brilliant Bright Holdings Limited | Interest held by controlled corporation | 945,000,000 | 15.55% | | Beijing Enterprises Real Estate (HK) Limited | Interest held by controlled corporation | 945,000,000 | 15.55% | | Beijing Enterprises Real-Estate Group Limited | Interest held by controlled corporation | 945,000,000 | 15.55% | | Illumination Holdings Limited | Interest held by controlled corporation | 945,000,000 | 15.55% | | Beijing Holdings Limited | Interest held by controlled corporation | 945,000,000 | 15.55% | | Beijing Enterprises Group Company Limited | Interest held by controlled corporation | 945,000,000 | 15.55% | | Beijing Financial Holdings Group Limited | Interest held by controlled corporation | 548,409,806 | 9.02% | | Beijing Financial Investment Holdings Limited | Interest held by controlled corporation | 548,409,806 | 9.02% | | Beijing Investment Co., Limited | Beneficial owner | 548,409,806 | 9.02% | | Ng Kin Nam | Beneficial owner | 401,300,000 | 6.60% | | Jangho Group Company Limited | Interest held by controlled corporation | 324,684,000 | 5.34% | - Cosmic Stand International Limited is wholly owned by Beijing Enterprises Health and Medical Resources Group Limited and ultimately controlled by Beijing Holdings Group Company Limited[451] - Beijing Investment Co Ltd is wholly owned by Beijing Financial Holdings Group Limited and ultimately controlled by Beijing Financial Investment Holdings Limited[451] - Jangho Group Company Limited indirectly controls Easy Glory Holding Limited and Advance Finding Investments Limited through its wholly-owned Jangho Curtain Wall Hong Kong Limited[453] 3. Share Options As of June 30, 2021, the total number of unexercised share options was 278,000,000, a decrease from 338,000,000 at the beginning of the period, primarily granted to directors and other employees with exercise periods extending to 2025 or 2026 Table: Share Options | Category | Number of Share Options as of January 1, 2021 (thousand options) | Number of Share Options as of June 30, 2021 (thousand options) | | :--- | :--- | :--- | | Directors | 182,000 | 182,000 | | Other employees and eligible persons | 156,000 | 96,000 | | Total | 338,000 | 278,000 | - The exercise prices of the share options were HK$0.61 per share (grant date April 2, 2015) and HK$0.53 per share (grant date January 28, 2016), respectively[455] - Share options are exercisable from the vesting date until April 1, 2025, and January 27, 2026, respectively (as applicable)[458] 4. Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2021, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - For the six months ended June 30, 2021, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[460][463] 5. Compliance with the Model Code of the Listing Rules The company confirms that, following specific enquiries made to each director, all directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers for the six months ended June 30, 2021 - The company's Board of Directors has adopted the Model Code set out in Appendix 10 of the Listing Rules[461][464] - All directors confirmed compliance with the Model Code for the six months ended June 30, 2021[461][464] 6. Corporate Governance Code The company has complied with the code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules throughout the six months ended June 30, 2021 - The company has complied with the code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules throughout the six months ended June 30, 2021[462][464] 7. Audit Committee The Audit Committee, established on April 11, 2002, comprises three independent non-executive directors and is responsible for reviewing the company's financial reporting and internal control principles, having reviewed this interim results announcement and interim report - The Audit Committee was established on April 11, 2002, responsible for reviewing financial reporting and internal control principles[466][468] - Committee members include Mr Tse Man Kit (Chairman), Mr Zhao Gang, and Mr Wu Yongxin, all of whom are independent non-executive directors[467][468] - The Audit Committee has reviewed the company's interim results announcement and interim report for the six months ended June 30, 2021[467][468] 8. Remuneration Committee The Remuneration Committee, established on May 23, 2006, aims to ensure the company's remuneration policy attracts, retains, and motivates a high-quality team, with members including Mr Zhao Gang (Chairman), Mr Tse Man Kit, and Mr Wu Yongxin - The Remuneration Committee was established on May 23, 2006, aiming to ensure the company can attract, retain, and motivate a high-quality team[470][472] - Committee members include Mr Zhao Gang (Chairman), Mr Tse Man Kit, and Mr Wu Yongxin, all of whom are independent non-executive directors[470][472] 9. Nomination Committee The Nomination Committee, established on May 23, 2006, is responsible for identifying and nominating suitable candidates for directorships and reviewing the Board's structure, size, and composition, with members including Mr Wu Yongxin (Chairman), Mr Zhao Gang, Mr Tse Man Kit, and Mr Zhu Shixing - The Nomination Committee was established on May 23, 2006, responsible for identifying and nominating suitable candidates for directorships and reviewing the Board's structure, size, and composition[471] - Committee members include Mr Wu Yongxin (Chairman), Mr Zhao Gang, Mr Tse Man Kit (Independent Non-executive Director), and Mr Zhu Shixing (Executive Director)[471] 10. Investment and Risk Management Committee The Investment and Risk Management Committee, established on October 8, 2014, is primarily responsible for overseeing risk management and evaluating the Group's major investment and funding projects, comprising Mr Gu Shanchao (Chairman), Mr Zhu Shixing, Mr Liu Xueheng, and Mr Lam Ka Tak - The Investment and Risk Management Committee was established on October 8, 2014, with primary duties including overseeing risk management and evaluating the Group's major investment and funding projects[475][478] - Committee members include Mr Gu Shanchao (Chairman), Mr Zhu Shixing, Mr Liu Xueheng, and Mr Lam Ka Tak[476][478] 11. Changes in Directors' Biographical Details Under Rule 13.51B(1) of Listing Rules Pursuant to Rule 13.51B(1) of the Listing Rules, since the date of the 2020 annual report, First Chemical Holdings (Cayman) Co Ltd, where Executive Director Mr Hu Xiangqi serves as Chairman, was listed on the Taiwan Stock Exchange on June 25, 2021 - Executive Director Mr Hu Xiangqi, who serves as Chairman of First Chemical Holdings (Cayman) Co Ltd, was listed on the Taiwan Stock Exchange on June 25, 2021 (stock code: 2250)[477] Corporate Information Board of Directors The company's Board of Directors comprises executive and independent non-executive directors, including Mr Zhu Shixing (Chairman), Mr Liu Xueheng (Co-Chief Executive Officer), and Mr Zhang Jingming (Co-Chief Executive Officer) - Executive Directors include Mr Zhu Shixing (Chairman), Mr Liu Xueheng (Co-Chief Executive Officer), Mr Zhang Jingming (Co-Chief Executive Officer), Mr Xiao Jianwei, Mr Gu Shanchao, Mr Hu Xiangqi, and Mr Wang Zhengchun[480] - Independent Non-executive Directors include Mr Zhao Gang, Mr Kang Shixue, Mr Tse Man Kit, Mr Wu Yongxin, and Mr Zhang Yunzhou[480] Authorised Representatives The company's authorized representatives are Mr Lam Ka Tak and Mr Liu Xueheng - The authorized representatives are Mr Lam Ka Tak and Mr Liu Xueheng[480] Company Secretary The company secretary is Mr Lam Ka Tak - The company secretary is Mr Lam Ka Tak[480] Audit Committee The Audit Committee members include Mr Tse Man Kit (Chairman), Mr Zhao Gang, and Mr Wu Yongxin - The Audit Committee members include Mr Tse Man Kit (Committee Chairman), Mr Zhao Gang, and Mr Wu Yongxin[480] Remuneration Committee The Remuneration Committee members include Mr Zhao Gang (Chairman), Mr Tse Man Kit, and Mr Wu Yongxin - The Remuneration Committee members include Mr Zhao Gang (Committee Chairman), Mr Tse Man Kit, and Mr Wu Yongxin[480] Nomination Committee The Nomination Committee members include Mr Wu Yongxin (Chairman), Mr Zhao Gang, Mr Tse Man Kit, and Mr Zhu Shixing - The Nomination Committee members include Mr Wu Yongxin (Committee Chairman), Mr Zhao Gang, Mr Tse Man Kit, and Mr Zhu Shixing[480] Investment and Risk Management Committee The Investment and Risk Management Committee members include Mr Gu Shanchao (Chairman), Mr Liu Xueheng, Mr Zhu Shixing, and Mr Lam Ka Tak - The Investment and Risk Management Committee members include Mr Gu Shanchao (Committee Chairman), Mr Liu Xueheng, Mr Zhu Shixing, and Mr Lam Ka Tak[480] Auditors The company's auditors are Ernst & Young Certified Public Accountants - The auditors are Ernst & Young Certified Public Accountants[482] Legal Adviser The company's legal adviser is Sidley Austin - The legal adviser is Sidley Austin[482] Stock Code The company's stock code is 2389 - The stock code is 2389[482] Website The company's official website is www.bjhl.com.hk - The company's website is www.bjhl.com.hk[482](index=482&type=chunk) Principal Bankers The company's principal bankers include Bank of Beijing, CITIC Bank International, Shanghai Pudong Development Bank, and Bank of Jinzhou - Principal bankers include Bank of Beijing, CITIC Bank International, Shanghai Pudong Development Bank, and Bank of Jinzhou[482] Registered Office The company's registered office is located in the Cayman Islands - The registered office is located at Cricket Square, Hutchins Drive, P.O. Box 2681, KY1-1111, Grand Cayman, Cayman Islands[482] Head Office and Principal Place of Business The company's head office and principal place of business are located at Unit 2704, 27/F, 909 Cheung Sha Wan Road, Cheung Sha Wan, Kowloon, Hong Kong - The head office and principal place of business are located at Unit 2704, 27/F, 909 Cheung Sha Wan Road, Cheung Sha Wan, Kowloon, Hong Kong[482] Principal Share Registrar and Transfer Office The company's principal share registrar and transfer office is Suntera (Cayman) Limited - The principal share registrar and transfer office is Suntera (Cayman) Limited[482] Hong Kong Branch Share Registrar and Transfer Office The company's Hong Kong branch share registrar and transfer office is Union Registrars Limited - The Hong Kong branch share registrar and transfer office is Union Registrars Limited[482]