Financial Performance - For the six months ended June 30, 2024, the group recorded revenue of approximately HKD 16,718,000, a decrease of about 46.1% compared to HKD 31,016,000 for the same period in 2023[1]. - The net loss attributable to the owners of the company for the six months ended June 30, 2024, was approximately HKD 4,088,000, a reduction of about 69.4% from HKD 13,357,000 in the same period of 2023[2]. - Total comprehensive expenses for the period amounted to HKD 15,052,000, down from HKD 31,276,000 in the same period of 2023[2]. - Basic and diluted loss per share for the period was HKD 0.24, compared to HKD 0.80 for the same period in 2023[2]. - The group reported a net loss before tax of HKD 4,083,000 for the six months ended June 30, 2024, compared to a net loss of HKD 13,357,000 for the same period in 2023[10][14]. - The loss for the period was approximately HKD 4,088,000, a decrease from a loss of approximately HKD 13,357,000 for the same period in 2023[46]. Revenue Breakdown - For the six months ended June 30, 2024, the total revenue was HKD 16,718,000, with HKD 12,116,000 from pharmaceutical product distribution and trading, and HKD 4,602,000 from marketing and promotion services[9]. - Revenue from the pharmaceutical product distribution and trading segment was HKD 12,116,000, down approximately 55.3% from HKD 27,124,000 in the same period last year[31]. - Revenue from marketing and promotion services increased by approximately 18.2% to HKD 4,602,000, compared to HKD 3,892,000 in the same period last year[32]. Assets and Liabilities - As of June 30, 2024, the group's asset-to-liability ratio was zero, unchanged from December 31, 2023[1]. - Non-current assets as of June 30, 2024, totaled HKD 121,608,000, an increase from HKD 113,407,000 as of December 31, 2023[3]. - Current assets amounted to HKD 373,616,000 as of June 30, 2024, slightly down from HKD 378,196,000 as of December 31, 2023[3]. - The company's total liabilities as of June 30, 2024, were HKD 5,759,000, consistent with HKD 5,795,000 as of December 31, 2023[3]. - The equity attributable to the owners of the company was HKD 468,671,000 as of June 30, 2024, down from HKD 480,253,000 as of December 31, 2023[3]. Expenses - The group incurred administrative expenses of HKD 5,867,000 and selling and distribution expenses of HKD 4,876,000 during the same period[9]. - Selling and distribution expenses were approximately HKD 4,876,000, a decrease of about 35.4% from approximately HKD 7,552,000 for the six months ended June 30, 2023[43]. - Administrative expenses were approximately HKD 5,867,000, a slight increase of about 0.9% compared to approximately HKD 5,814,000 for the six months ended June 30, 2023[44]. Investments and Acquisitions - The group acquired properties, plants, and equipment amounting to approximately HKD 567,000,000 during the period, compared to HKD 43,000,000 for the six months ended June 30, 2023[17]. - The group acquired 16% of the issued share capital of China Nüwa Pharmaceutical Group Co., Ltd. for HKD 17,280,000 on May 16, 2024[48]. - The investment in China Nüwa Pharmaceutical is classified as a financial asset measured at fair value through other comprehensive income, reflecting a long-term investment strategy[48]. - The group has invested approximately HKD 14,529,000 in Shengzhou New Sharp Wanlin during the reporting period[59]. Legal and Governance - The group is involved in a legal case initiated by the Securities and Futures Commission regarding past directors' responsibilities, with a claim for HKD 26 million plus interest[63][64]. - The company has adopted its own corporate governance code in accordance with the principles and rules set out in the Corporate Governance Code under Appendix C1 of the Listing Rules[66]. - The company has confirmed that all directors have complied with the required standards of the standard code for securities transactions during the period[67]. - There are no significant litigations, arbitrations, or claims involving any member of the group as of June 30, 2024, and no unresolved or potential significant litigations are anticipated[65]. Market and Operational Insights - The group faced a decline in demand for its second-generation cephalosporin products due to the implementation of stricter antibiotic management policies in mainland China[27]. - The group operates a network of customers across various regions in China, including Zhejiang, Jiangsu, Hainan, Hunan, and Guangdong provinces[26]. - The group continues to monitor macroeconomic changes and trends in the healthcare industry to balance growth and risk[56]. - The group has not made any significant investments, acquisitions, or disposals during the reporting period[51]. Employee and Operational Metrics - Employee costs for the period amounted to approximately HKD 4,022,000, compared to HKD 3,843,000 for the six months ended June 30, 2023[61]. - The group has 23 employees as of June 30, 2024, unchanged from December 31, 2023[61]. Currency and Risk Management - The group faces foreign currency risk due to operations in China, with most transactions denominated in RMB[62]. - The group does not consider the potential impact of exchange rate fluctuations on its profit and loss to be significant, thus no foreign currency hedging policy is adopted[62].
新锐医药(06108) - 2024 - 中期业绩