Company Overview - Good Fellow Healthcare Holdings Limited is incorporated in the Cayman Islands and listed on the GEM of the Hong Kong Stock Exchange[1]. - The company has a registered office in the Cayman Islands and a principal place of business in Hong Kong[23]. - The report is prepared in compliance with the GEM Listing Rules[2]. Financial Performance - The Group's revenue for the year ended 31 March 2020 was approximately HK$144.591 million, representing a decrease of approximately 55.77% compared to HK$326.926 million in 2019[29]. - Gross profit for the year was approximately HK$60.997 million, a decrease of approximately 57.29% from HK$142.803 million in 2019[35]. - The operating loss from operations was approximately HK$48.579 million, compared to an operating loss of approximately HK$44.529 million in 2019[35]. - Net loss attributable to owners of the Company was approximately HK$49.504 million, slightly improved from a net loss of approximately HK$50.356 million in 2019[35]. - The loss for the year was mainly due to an impairment loss on goodwill[29]. - The Group recorded a net loss from operations before taxation of approximately HK$55.716 million, an increase from HK$46.065 million in 2019, primarily due to an impairment loss on goodwill of approximately HK$13.985 million[50]. - Other revenue, including finance lease interest income and bank interest income, amounted to approximately HK$2.582 million, an increase from approximately HK$0.746 million in 2019[42][45]. - Selling and distribution expenses decreased by approximately 52.60% to HK$31.764 million from HK$67.016 million in 2019, attributed to the disposal of Zhuhai Jiulong Hospital and Edward Hospital[43][46]. - Administrative expenses for the year ended 31 March 2020 were approximately HK$67.667 million, a decrease of approximately 20.40% from HK$85.005 million in 2019[44]. - Finance costs increased by approximately 364.65% to HK$7.137 million from HK$1.536 million in 2019, due to increased interest expenses on lease liabilities[44]. - As of March 31, 2020, the Group had total cash and cash equivalents of approximately HK$55.441 million, a decrease from approximately HK$126.830 million in 2019[56]. - The Group recorded total current assets of approximately HK$80.554 million and total current liabilities of approximately HK$40.950 million, resulting in a current ratio of approximately 1.967 as of March 31, 2020, down from 2.748 in 2019[57]. - For the year ended March 31, 2020, staff costs amounted to approximately HK$68.813 million, a decrease of 22.8% from HK$89.121 million in 2019[81][82]. Operational Overview - The Group operates three general hospitals in Jiaxing, Zhuhai, and Beijing, down from four hospitals in 2019[29]. - The Group continued to focus on providing general hospital services in the People's Republic of China[29]. - The Group's operational strategy remains focused on the healthcare sector in the PRC despite the significant revenue decline[29]. - The financial year 2019/2020 was described as critical and full of challenges for the Group[29]. - The management anticipates more diversified hospital services to be available in the next few years to meet various public needs[38]. - The Group plans to continue allocating resources to develop hospital services either from existing hospitals or through collaboration with strategic partners[38]. Corporate Governance - The Company has adopted the Corporate Governance Code effective from April 1, 2012, to enhance corporate value and accountability[145]. - The Board is collectively responsible for promoting the success of the Company and its business by directing and supervising its affairs[149]. - The Company emphasizes the importance of corporate governance as a key element in creating shareholder value[147]. - The Company has established a nomination committee chaired by the chairman of the Board to comply with governance standards[146]. - The Board consists of three executive Directors, one non-executive Director, and three independent non-executive Directors, with eight full Board meetings held during the year ended March 31, 2020[159]. - The Company has arranged appropriate directors' liability insurance to indemnify directors for liabilities arising from corporate activities, with regular reviews of coverage and sum insured[156]. - The Company provides comprehensive induction and ongoing training for Directors to ensure they understand their responsibilities and the Group's operations[170]. - The Company will review the effectiveness of its corporate governance structure periodically[171]. Management and Board Composition - The company has a diverse board with expertise in finance, management, and academia, enhancing its strategic decision-making capabilities[129]. - The management team includes professionals with international experience, which may facilitate market expansion and global partnerships[125]. - The company is focused on leveraging its executive team's extensive backgrounds to drive growth and innovation in its operations[124]. - The roles of chairman and chief executive are separated, with Mr. Ng Chi Lung serving as chairman and Dr. Jiang Tao as chief executive officer[178]. - Independent non-executive Directors have confirmed their independence in accordance with GEM Listing Rules[167]. Risks and Challenges - The restructuring of central ministries in China may slow down hospital operations and management procedures, posing potential risks to the execution of marketing plans[117]. - Regional governance of hospitals varies by city, impacting operations and presenting challenges for standardization and consistency in hospital management[118]. - The company aims to comply with regional policies and core guidelines issued by the central government to ensure smooth operations[118]. Significant Events and Transactions - The company disposed of the entire issued share capital of Sino Brave Investments Limited for HK$1,000,000 on April 16, 2019, with completion on August 31, 2019[88][89]. - The disposal of Merry Sky Investments Limited was completed on 30 March 2020, ceasing its consolidation into the company's financial statements[99]. - The refurbishment of Edinburgh International Hospital was completed at a cost of RMB41,600,000 (approximately HK$45,427,000) and was substantially completed in December 2019[83][87]. - A supplemental agreement to the refurbishment was made on August 6, 2019, reducing the refurbishment cost to RMB27,049,600 (approximately HK$29,538,000)[86][90]. - Jiaxing Shuguang Medical Beauty Clinic signed a tenancy agreement for 33 rooms with an annual rent of RMB2,923,029.62, increasing by 5% every two years, for a term of 12 years and 11 months[96]. - Edinburgh International Hospital entered into a tenancy agreement for a term of 60 months with a monthly rent of RMB224,771.36, with a rent-free period of 60 months[101]. Future Outlook - The management is optimistic about the healthcare industry's prospects in China, driven by increasing needs for quality medical services and advanced technologies[53]. - Chronic disease treatment and management have become a priority due to market size and government focus, with preliminary results confirming the potential for further development in this area[53]. - The potential cooperation in Hainan aims to promote the development of super hospitals and pilot zones[108]. - The company is focused on introducing unique diabetes diagnosis and treatment technology from the University of Edinburgh to enhance healthcare services in China[108].
金威医疗(08143) - 2020 - 年度财报