北京健康(02389) - 2024 - 中期财报

Unaudited Interim Financial Information Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group's H1 2024 revenue decreased by 6.1%, leading to a significant expansion of loss for the period to HKD 57.58 million, driven by reduced revenue and negative other income Key Profit or Loss Data for H1 2024 (HKD thousands) | Indicator | H1 2024 (Unaudited) | H1 2023 (Unaudited) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 73,307 | 78,038 | -6.1% | | Gross Profit | 16,382 | 18,724 | -12.5% | | Other income and gains, net | (10,922) | 21,352 | N/A | | Loss Before Tax | (60,342) | (19,500) | +209.4% | | Loss for the Period | (57,579) | (18,032) | +219.3% | | Total Comprehensive Loss | (69,439) | (62,151) | +11.7% | | Basic Loss Per Share Attributable to Owners of the Parent | (0.93) HK cents | (0.26) HK cents | +257.7% | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2024, the Group's total assets and net assets decreased from year-end 2023, primarily due to reduced cash and cash equivalents and operating losses Key Financial Position Data (HKD thousands) | Indicator | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | Change | | :--- | :--- | :--- | :--- | | Total non-current assets | 1,437,626 | 1,484,646 | -3.2% | | Total current assets | 594,081 | 693,725 | -14.4% | | Total Assets | 2,031,707 | 2,178,371 | -6.7% | | Total current liabilities | 128,048 | 148,733 | -13.9% | | Total non-current liabilities | 72,273 | 75,090 | -3.7% | | Total Liabilities | 200,321 | 223,823 | -10.5% | | Net Assets | 1,831,386 | 1,954,548 | -6.3% | Interim Condensed Consolidated Statement of Changes in Equity In H1 2024, the Group's total equity decreased by approximately HKD 124 million, from HKD 1.955 billion to HKD 1.831 billion, primarily due to a total comprehensive loss of HKD 69.44 million - Total equity decreased from HKD 1,954,548 thousand at the beginning of 2024 to HKD 1,831,386 thousand as of June 30[10] - The primary driver for the equity reduction was a total comprehensive loss of HKD 69,439 thousand recorded during the period, with HKD 68,085 thousand attributable to owners of the parent[10] Interim Condensed Consolidated Statement of Cash Flows In H1 2024, the Group's net cash and cash equivalents decreased by HKD 51.71 million, with net cash outflows from operating, investing, and financing activities Cash Flow Statement Overview (HKD thousands) | Item | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Net cash flows used in operating activities | (36,938) | (12,304) | | Net cash flows used in investing activities | (11,995) | (6,943) | | Net cash flows used in financing activities | (2,778) | (31,365) | | Net decrease in cash and cash equivalents | (51,711) | (50,612) | | Cash and cash equivalents at end of period | 100,998 | 140,075 | Notes to Interim Condensed Consolidated Financial Information The notes detail the financial statement preparation basis and accounting policies, highlighting the Group's single operating segment in China for healthcare and elderly care services, significant third-party loans, contingent liabilities, and fair value hierarchy of financial instruments - The Group operates a single reportable segment, providing medical, health, and elderly care-related services and products, with all revenue derived from customers in Mainland China[37] - Revenue primarily originated from sales of goods (HKD 68.08 million) and provision of services (HKD 5.23 million)[42] - The Group provided loans totaling approximately HKD 217 million to three independent third parties (Borrowers A, B, and C), with a HKD 50 million loan to Borrower B overdue and a HKD 15 million impairment provision made[67][72] - The Group has a contingent liability of up to RMB 28 million as a guarantor for bank financing granted to an associate company[91] Management Discussion and Analysis Business Review The Group's business comprises three segments: geriatric care, health industrial parks, and medical and geriatric product sales, each experiencing varied performance due to market dynamics and project developments Geriatric Care Business The geriatric care business operates six institutions with 1,235 beds in the Yangtze River Delta, achieving a 4% revenue growth to RMB 21.64 million in H1 2024, but net profit declined by 41% due to new project costs Geriatric Care Business H1 Performance | Indicator | H1 2024 | H1 2023 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue (RMB) | 21.64 million | 20.82 million | +4% | | Net Profit (RMB) | 1.12 million | 1.90 million | -41% | | Total Bed Capacity | 1,235 | - | - | | Average Occupancy Rate | 56% | 75% | -19pp | Health Industrial Park Business The Group is involved in six health industrial park projects across China and Canada, with varied progress including project completion, leasing, and temporary suspension due to government approvals - The Canada Ovation project was delivered in early 2024 and repaid approximately CAD 8.6 million to the Group in mid-July[155] - The Dali Haidong New Area project is temporarily suspended due to a halt in approvals by the Yunnan Provincial Government[153] Sale of Medical and Geriatric Product Weisen Shengye, a subsidiary in medical and geriatric product sales, faced intense market competition in H1, yet secured key projects with major universities by leveraging long-term client relationships and active market engagement - The company continues to focus on specialized furniture for education, elderly care, and medical sectors, with H1 efforts primarily on market expansion targeting the education industry[156] - Key projects successfully secured include the "China University of Petroleum (Beijing) Third Teaching Building Project" and the "Chang'an University Procurement Project"[157] Future Prospect The Group plans to expand its 'Beikang Medical & Elderly Care' brand, explore Greater Bay Area expansion, divest some health industrial park projects in China while pursuing quick-turnaround real estate in Canada, seek M&A for medical products, and prudently manage finances while exploring sports industry investments - Geriatric Care Industry: Focus on building the 'Beikang Medical & Elderly Care' brand, deepening presence in the Yangtze River Delta, exploring expansion into the Greater Bay Area, and planning to sign two new projects adding over 200 beds in H2[162][166] - Health Industrial Parks: Temporarily halt increased investment in China, identify partners for timely divestment of certain projects, and expand into quick-turnaround projects in Canada[165] - Medical and Geriatric Products: Continue market expansion and actively seek suitable M&A targets[167] - Overall Strategy: Strictly control costs, prudently manage funds, enhance cash returns through wealth management and equity/debt investments, and seek investment opportunities in the sports industry[168] Financial Review In H1 2024, the Group's revenue decreased by 6.1% to HKD 73.31 million, primarily due to a 9% drop in medical and geriatric product sales, while gross margin declined to 22.3% and other income shifted to a net loss of HKD 10.92 million, leading to a significantly expanded loss for the period - Operating revenue decreased by 6.1% year-on-year, primarily due to a 9% reduction in medical and geriatric product sales revenue, influenced by a sluggish economic recovery in China and cautious customer investment[171][174] - Overall gross margin decreased from 24% in the prior period to 22.3%, mainly due to rising raw material prices driven by global inflation[173] - Net other income and gains shifted from a HKD 21.35 million gain in the prior period to a HKD 10.92 million loss, primarily impacted by a significant reduction in investment-related income, decreased interest income from the completed Canadian real estate debt investment, and HKD 12.6 million in exchange losses due to CAD depreciation[175] - As of June 30, 2024, the Group held approximately HKD 101 million in cash and cash equivalents, with net current assets of HKD 466 million and a current ratio of 4.6 times, maintaining a sound financial position[193][196] Additional Information Directors' and Substantial Shareholders' Interests This section discloses the interests of directors, chief executives, and substantial shareholders in the company's shares as of June 30, 2024, including Executive Director Mr. Wang Zhengchun's 2.24% stake and major shareholders China Vista Capital Limited (17.53%) and Cosmic Stand International Limited (15.60%) Substantial Shareholders' Shareholdings (As of June 30, 2024) | Shareholder Name | Number of Shares Held | Percentage of Shareholding | | :--- | :--- | :--- | | China Vista Capital Limited | 1,062,219,806 | 17.53% | | Cosmic Stand International Limited | 945,000,000 | 15.60% | | Ng Kin Nam (吴健南) | 401,300,000 | 6.62% | | Jangho Group Company Limited | 324,684,000 | 5.36% | | Lin Chih Lung (林志龙) | 364,192,000 | 6.01% | Share Options At the beginning of the period, the company had 258 million unexercised share options, with 22 million lapsing due to two directors' resignations, resulting in 236 million outstanding options as of June 30, 2024 - As of June 30, 2024, the company had a total of 236,000,000 unexercised share options[230] - During the reporting period, a total of 22,000,000 share options lapsed due to the resignations of Directors Mr. Hu Xiangqi and Mr. Kang Shixue[230] Corporate Governance and Committees The company confirmed compliance with the Listing Rules' Corporate Governance Code during the reporting period, detailing the composition and responsibilities of its Audit, Remuneration, Nomination, and Investment & Risk Management Committees, with the Audit Committee having reviewed this interim report - The company has complied with the Corporate Governance Code set out in Appendix C1 to the Listing Rules[235] - The Audit Committee, comprising three independent non-executive directors and chaired by Mr. Tse Man Kit, has reviewed the interim results for the current period[235] Corporate Information Key Corporate Information This section provides core company details, including the board of directors, committee chairs, company secretary, auditor (Ernst & Young), legal advisors, principal bankers, and registered and principal places of business - The company's Chairman is Executive Director Mr. Zhu Shixing, and the Chief Executive Officer is Mr. Liu Xueheng[241] - The company's auditor is Ernst & Young[242]