CLSA PREMIUM(06877) - 2024 - 中期财报

Corporate Information This section provides essential corporate details, including board members, key contact information, and auditor details Corporate Information This chapter provides fundamental corporate information, including board and committee members, registered office, principal business locations, and key contact details Key Personnel and Institutions | Position | Name/Institution | | :--- | :--- | | Chairman (Non-executive Director) | Mr LI Jiong | | Vice CEO (Executive Director) | Mr YUAN Feng | | Auditor | BDO Limited | | Principal Bankers | China CITIC Bank International Limited, Bank of Communications (Hong Kong) Limited | - The company made changes to its independent non-executive directors and relevant committee members in March 2024, with Mr MA An Yang succeeding Mr MA Xu Fei in related roles[4] Management Discussion and Analysis This section provides an overview of the company's financial performance, business operations, and future strategic direction Financial Performance Despite a 61% decline in total revenue due to the termination of margin trading, the Group achieved profit growth by focusing on high-margin healthcare business, maintaining a robust financial position with ample cash and zero debt Financial Performance Summary (Continuing Operations) | Metric (Continuing Operations) | 2024 Interim (HKD Thousands) | 2023 Interim (HKD Thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 55,501 | 141,895 | -61% | | Profit Before Tax | 7,436 | 8,236 | -10% | | Profit for the Period Attributable to Owners of the Company | 6,260 | 6,932 | -10% | | Basic Earnings Per Share (HK Cents) | 0.31 | 0.34 | -9% | Note: The table above presents data for continuing operations. Including discontinued operations, total revenue for 2024 interim was HKD 55,501 thousand, a 61% YoY decrease; total profit attributable to owners of the company was HKD 6,260 thousand, a 13% YoY increase - The decline in total revenue is primarily due to the termination of margin trading business in 2023, resulting in zero revenue from this segment, with healthcare business now being the sole revenue source, albeit with a year-on-year decrease[9] - The increase in net profit is mainly attributed to the Group's strategic shift towards higher-margin B2C healthcare business, effectively enhancing the gross profit of the healthcare segment[19] - As of June 30, 2024, the Group held HKD 224 million in cash and bank balances, indicating a healthy financial position with zero debt ratio[20][21] Business Review The Group successfully transitioned its core business entirely to healthcare, launched its first ODM products in February 2024, and plans further market expansion, while also resuming share trading in July 2024, despite facing a potential change in controlling shareholder - Healthcare business has become the Group's core profit and growth driver, with the successful launch of 11 ODM products incorporating traditional Chinese medicine formulas in February 2024, marking a new business phase[34][38][39] - The Group plans to expand its healthcare business, especially ODM, by increasing resource allocation, broadening supplier and customer networks, and engaging in targeted marketing with KOLs[40][43] - The company's shares resumed trading on the Stock Exchange on July 19, 2024, after being suspended for failing to meet Listing Rule 13.24[45] - A significant post-reporting period event involves the controlling shareholder, CITIC Securities International Company Limited, proposing to transfer approximately 28% to 40% of the company's shares through public solicitation, potentially leading to a change in control[45][154] Corporate Governance and Other Information This section details the company's corporate governance practices, key shareholder information, and other relevant disclosures Corporate Governance and Shareholder Information This chapter outlines the company's corporate governance practices, confirming compliance with the code, discloses major shareholder holdings with CITIC Securities International as controlling shareholder, and notes no share repurchases or interim dividends declared during the period - The company complied with the Corporate Governance Code throughout the 2024 interim period, with all directors confirming adherence to the Model Code for Securities Transactions[51][52] Major Shareholder Information | Major Shareholder | Number of Shares Held | Shareholding Percentage | | :--- | :--- | :--- | | CITIC Securities International Company Limited | 1,200,310,001 | 59.03% | | KVB Holdings Limited | 300,000,000 | 14.75% | | Calypso International Investment Co., Limited | 106,355,000 | 5.23% | - The Board resolved not to declare any dividend for the 2024 interim period[62] - The company's Audit Committee reviewed the interim financial statements and had no disagreement with the accounting treatments adopted[68] Financial Statements This section presents the company's condensed consolidated interim financial statements, encompassing comprehensive income, financial position, equity changes, and cash flows Condensed Consolidated Interim Statement of Comprehensive Income For the six months ended June 30, 2024, the Group's continuing operations generated HKD 55.501 million in revenue and HKD 6.26 million in profit for the period, with no income or loss from the discontinued margin trading business Condensed Consolidated Interim Statement of Comprehensive Income | Item (HKD Thousands) | 2024 Interim | 2023 Interim (Restated) | | :--- | :--- | :--- | | Total Revenue from Continuing Operations | 55,501 | 141,895 | | Sales of Healthcare Products | 50,687 | 138,108 | | Other Income | 4,814 | 3,787 | | Profit for the Period from Continuing Operations | 6,260 | 6,932 | | Loss for the Period from Discontinued Operations | – | (1,378) | | Total Profit for the Period | 6,260 | 5,554 | | Total Comprehensive Income for the Period | 5,741 | 5,074 | Condensed Consolidated Interim Statement of Financial Position As of June 30, 2024, the Group's total assets reached HKD 262.097 million, a 4% increase from year-end 2023, with total equity at HKD 245.606 million, a 2% increase, demonstrating a robust financial position dominated by liquid assets, primarily cash and bank balances Condensed Consolidated Interim Statement of Financial Position | Item (HKD Thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Assets | 262,097 | 251,775 | | Non-current Assets | 194 | 388 | | Current Assets | 261,903 | 251,387 | | Total Liabilities | 16,491 | 11,910 | | Total Equity | 245,606 | 239,865 | Condensed Consolidated Interim Statement of Changes in Equity As of June 30, 2024, the Group's total equity increased to HKD 245.606 million, primarily driven by a HKD 6.26 million profit for the period, partially offset by a HKD 0.519 million currency translation difference Condensed Consolidated Interim Statement of Changes in Equity | Item (HKD Thousands) | Amount | | :--- | :--- | | Balance as at January 1, 2024 | 239,865 | | Profit for the Period | 6,260 | | Other Comprehensive Expense (Currency Translation Difference) | (519) | | Balance as at June 30, 2024 | 245,606 | Condensed Consolidated Interim Statement of Cash Flows In 2024 interim, the Group reported a HKD 2.879 million net cash outflow from operating activities and a HKD 4.814 million net cash inflow from investing activities, primarily interest income, with period-end cash and cash equivalents at HKD 224 million, indicating stable cash flow Condensed Consolidated Interim Statement of Cash Flows | Item (HKD Thousands) | 2024 Interim | 2023 Interim (Restated) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (2,879) | (2,652) | | Net Cash From Investing Activities | 4,814 | 4,683 | | Net Cash Used in Financing Activities | – | (1) | | Net Increase in Cash and Cash Equivalents | 1,935 | 2,030 | | Cash and Cash Equivalents at End of Period | 223,850 | 213,330 | Notes to the Interim Financial Information This section provides detailed notes to the interim financial information, covering segment reporting, discontinued operations, trade receivables, and contingent liabilities Note 4 Segment Reporting The Group's business is restructured into continuing healthcare and discontinued margin trading segments, with all 2024 interim revenue and profit derived from Hong Kong-based healthcare operations, showing some customer concentration from the top three clients Segment Performance for 2024 Interim | 2024 Interim (HKD Thousands) | Healthcare Business (Continuing) | Unallocated | Margin Trading (Discontinued) | Total | | :--- | :--- | :--- | :--- | :--- | | Segment Revenue | 50,687 | – | – | 50,687 | | Segment Profit/(Loss) | 8,401 | (965) | – | 7,436 | - The Group's primary revenue is derived from operations in Hong Kong, accounting for 100% of continuing operations revenue[101][103] Note 8 Discontinued Operations This note details the financial impact of the discontinued margin trading business, which incurred a HKD 1.378 million pre-tax loss in 2023 H1 but had no operations or related profit/loss in 2024 H1 Financial Impact of Discontinued Operations | Item (HKD Thousands) | 2024 Interim | 2023 Interim (Restated) | | :--- | :--- | :--- | | Total Revenue | – | 1,113 | | Total Expenses | – | (2,490) | | Loss Before Tax | – | (1,378) | Note 14 Trade Receivables As of June 30, 2024, total trade receivables significantly increased to HKD 26.35 million from HKD 12.98 million at year-end 2023, reflecting business expansion, with most balances current or less than three months overdue, requiring no significant impairment provision Aging Analysis of Trade Receivables | Aging Analysis | June 30, 2024 (HKD Thousands) | Percentage | | :--- | :--- | :--- | | Current | 15,318 | 58.1% | | Less than three months overdue | 9,584 | 36.4% | | Three to six months overdue | 1,447 | 5.5% | | Total | 26,349 | 100.0% | Note 22 Litigations and Contingent Liabilities This note discloses ongoing litigation with former IT service provider Banclogix System Co., Limited regarding service agreement termination, with trial set for January 2026, and management, based on legal advice, deems no provision necessary at this stage - The Group is involved in ongoing mutual litigation with former IT service provider Banclogix concerning service agreement termination and data return issues, with the trial scheduled for January 2026[154] - Despite uncertainties regarding the litigation outcome and potential financial impact, the company's legal counsel maintains cautious optimism, leading the directors to believe no provision is currently required[154]