Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 88,516,000, a decrease of 4.6% from HKD 92,590,000 in the same period of 2023[1] - Gross profit for the same period was HKD 37,852,000, down from HKD 38,560,000, reflecting a slight decline in profitability[1] - The company reported a loss before tax of HKD 22,620,000 compared to a profit of HKD 40,038,000 in the prior year, indicating a significant downturn in financial performance[2] - Total comprehensive loss for the period was HKD 34,247,000, compared to a comprehensive income of HKD 15,058,000 in the previous year[3] - Basic and diluted loss per share for the period was HKD (0.48), compared to earnings per share of HKD 0.79 in the previous year[2] - The loss attributable to equity holders of the company was approximately HKD 24,000,000, compared to a profit of HKD 40,000,000 in the same period of 2023[33] Assets and Liabilities - Non-current assets decreased to HKD 221,886,000 from HKD 249,646,000 as of December 31, 2023, showing a decline in asset value[4] - Current assets totaled HKD 345,834,000, a slight decrease from HKD 355,421,000 at the end of 2023[4] - The company's net asset value decreased to HKD 457,239,000 from HKD 491,764,000, reflecting a reduction in equity[5] - The total assets as of June 30, 2024, amounted to HKD 567,720, with reportable segment assets of HKD 301,334 for the dental business and HKD 243,671 for the health business[13] - The total liabilities were HKD 110,481, with reportable segment liabilities of HKD 72,068 for the dental business and HKD 21,060 for the health business[13] Revenue Segmentation - Revenue from external customers for the dental business was HKD 85,888, while the health business generated HKD 2,628, totaling HKD 88,516 for the six months ended June 30, 2024[10] - Revenue from external customers in China (excluding Hong Kong) was HKD 88,394, compared to HKD 92,256 in the previous year[15] - Revenue from the dental business was approximately HKD 85,900,000, a decrease of about HKD 2,900,000 from HKD 88,800,000 in the same period last year[35] Segment Performance - The company has two operating segments: dental manufacturing and sales, and sports rehabilitation services, indicating a diversified business model[9] - The segment profit before depreciation and amortization for the dental business was HKD 1,894, and for the health business, it was HKD 1,589, resulting in a total of HKD 3,483[10] - The total segment loss before tax was HKD 15,276, with the dental segment reporting a loss of HKD 1,996 and the health segment a loss of HKD 13,280[10] - The company reported a segment profit of HKD 6,803 for the dental business, while the health business incurred a loss of HKD 1,348, leading to a total segment profit of HKD 5,455[11] Research and Development - Research and development expenses amounted to HKD 8,584 for the six months ended June 30, 2024[18] - Research and development expenses amounted to approximately HKD 8,600,000, reflecting the company's commitment to investing in future technologies[36] - The company has applied for a super deduction of 175% on R&D expenses for the taxable profits for the six months ended June 30, 2024, under the new tax policy in China[20] Cash Flow and Investments - The group had a cash balance of approximately HKD 147,200,000 as of June 30, 2024, down from HKD 174,100,000 as of December 31, 2023[44] - Capital expenditures during the period amounted to approximately HKD 2,100,000, primarily invested in production equipment[45] - The company’s investment in limited partnership equity focused on technology and healthcare sectors had a carrying amount of approximately HKD 124,039,000 as of June 30, 2024, down from HKD 144,025,000 as of December 31, 2023[25][26] - The company recorded a fair value loss of approximately HKD 10,681,000 on its investments for the six months ended June 30, 2024, compared to a loss of HKD 28,306,000 for the same period in 2023[25] Market Outlook and Strategy - The dental market in China is expected to maintain rapid growth due to rising consumer spending and increased oral health awareness, with potential for several times the current market size[51] - The company plans to expand its sales network both domestically and internationally, particularly in the U.S., and enhance production capacity in China[51] - The company aims to develop high-end dental products with cosmetic functions and actively participate in national exhibitions to improve service offerings[51] - The implant business is anticipated to achieve significant growth, with more product approvals expected in the second half of 2024[51] - The rehabilitation business will focus on improving product strength and service levels, while exploring regional expansion opportunities[52] Dividend and Taxation - The company did not declare or recommend any dividends for the six months ended June 30, 2024, nor since the reporting date[21] - The company's income tax expense for the six months ended June 30, 2024, was HKD 1,644,000, compared to HKD 1,262,000 for the same period in 2023, reflecting an increase of approximately 30.2%[20]
佳兆业健康(00876) - 2024 - 中期业绩