中国再生医学(08158) - 2024 - 中期财报

Corporate Information Provides an overview of the company's governance structure, key personnel, and registration details Directors and Company Secretary The Board of Directors includes executive, non-executive, and independent non-executive directors, with recent changes in non-executive director and company secretary roles - Mr. Wang Chuang serves as the Executive Director, Chairman of the Board, and Chief Executive Officer[4] - Mr. Tsang Ho Yin, a Non-Executive Director, resigned on August 20, 2024[4] - Mr. Wong Po Tin was appointed Company Secretary on July 2, 2024, succeeding Mr. Yau Woon Fat who resigned on the same day[4] Committees and Key Personnel The company operates with Nomination, Remuneration, and Audit Committees, all chaired by independent non-executive directors, with Mr. Wang Chuang also serving as Compliance Officer and Authorized Representative - Dr. Liu Ming chairs the Nomination Committee[4] - Dr. Liu Ming chairs the Remuneration Committee[4] - Mr. Leung Man Fai chairs the Audit Committee[4] Company Details and Contacts The company is registered in the Cayman Islands, with its principal place of business in Hong Kong, and uses HSBC as a primary bank and Zhongzheng Tianheng CPA Limited as auditor - The company's registered office is in the Cayman Islands[5] - The principal place of business in Hong Kong is located in Miramar Tower, Tsim Sha Tsui, Kowloon[5] - The company's stock code is 8158, and its website is **www.crmi.hk**[6](index=6&type=chunk) Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Presents the group's financial performance, highlighting revenue, gross profit, and net profit for the period Financial Performance Overview For the six months ended June 30, 2024, the Group reported revenue of HK$59,785 thousand, a 19.44% decrease, while gross profit increased by 29.53% to HK$39,490 thousand, and profit for the period significantly grew to HK$16,828 thousand Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30) | Metric | 2024 (HK$ '000) | 2023 (HK$ '000) (Restated) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 59,785 | 74,216 | -19.44% | | Cost of sales | (20,295) | (43,729) | -53.60% | | Gross profit | 39,490 | 30,487 | +29.53% | | Other income, gains and losses | 83 | 20 | +315.00% | | Selling and distribution expenses | (3,116) | (3,352) | -7.04% | | Administrative and other expenses | (18,991) | (15,725) | +20.77% | | Finance costs | (638) | (540) | +18.15% | | Profit before tax | 16,828 | 10,890 | +54.53% | | Income tax credit | – | 1,872 | -100.00% | | Profit for the period attributable to owners of the Company | 16,828 | 12,762 | +31.86% | - Other comprehensive expenses for the period amounted to HK$3,486 thousand, primarily due to exchange losses on translation of financial statements of overseas operations[9] Earnings Per Share (Six Months Ended June 30) | Metric | 2024 (HK cents) | 2023 (HK cents) | | :--- | :--- | :--- | | Basic earnings per share | 5.53 | 4.47 | | Diluted earnings per share | 5.53 | 4.47 | Condensed Consolidated Statement of Financial Position Details the company's financial position, including assets, liabilities, and equity at the reporting date Assets and Liabilities Overview As of June 30, 2024, the Group's net current assets and total equity significantly increased, primarily driven by profit for the period, while current liabilities substantially decreased, improving the financial position Key Data from Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | 2024 (HK$ '000) | December 31, 2023 (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 12,205 | 17,318 | -29.52% | | Current assets | 132,869 | 168,579 | -21.29% | | Current liabilities | 98,213 | 147,790 | -33.54% | | Net current assets | 34,656 | 20,789 | +66.70% | | Total assets less current liabilities | 46,861 | 38,107 | +22.97% | | Non-current liabilities | 21,726 | 26,314 | -17.44% | | Net assets | 25,135 | 11,793 | +113.13% | | Total equity | 25,135 | 11,793 | +113.13% | - Contract liabilities within current liabilities significantly decreased from HK$81,090 thousand as of December 31, 2023, to HK$18,908 thousand as of June 30, 2024[11] - Shareholder loans (current portion) increased from HK$13,629 thousand as of December 31, 2023, to HK$19,633 thousand as of June 30, 2024[11] Condensed Consolidated Statement of Changes in Equity Outlines changes in the company's total equity, driven by profit and other comprehensive income Equity Movement Analysis For the six months ended June 30, 2024, the Group's total equity increased from HK$11,733 thousand at the beginning of the period to HK$25,135 thousand, primarily due to profit for the period of HK$16,828 thousand, partially offset by exchange losses of HK$3,486 thousand Overview of Equity Movements (Six Months Ended June 30) | Metric | 2024 (HK$ '000) | 2023 (HK$ '000) | | :--- | :--- | :--- | | Total equity at beginning of period | 11,733 | 103,916 | | Profit for the period | 16,828 | 12,762 | | Exchange loss on translation of financial statements of overseas operations | (3,486) | (5,037) | | Total comprehensive income/(expense) for the period | 13,342 | 7,725 | | Total equity at end of period | 25,135 | 111,641 | - Special reserve represents the difference between the nominal value of shares of acquired subsidiaries and the nominal value of shares issued by the Company for the acquisition during the Group's reorganization in 2001[24] - Other reserves include the difference between the fair value of consideration paid for increasing equity in subsidiaries and the adjustment to non-controlling interests, as well as deemed contributions from shareholders[25] Condensed Consolidated Statement of Cash Flows Summarizes cash movements from operating, investing, and financing activities during the period Cash Flow Summary For the six months ended June 30, 2024, the Group reported a net cash outflow from operating activities, a reversal from the prior period's inflow, with continued cash consumption in investing activities and a net cash inflow from financing activities, resulting in a net decrease in cash and cash equivalents Key Data from Condensed Consolidated Statement of Cash Flows (Six Months Ended June 30) | Metric | 2024 (HK$ '000) | 2023 (HK$ '000) | | :--- | :--- | :--- | | Net cash (used in)/generated from operating activities | (151) | 79 | | Net cash used in investing activities | (529) | (110) | | Net cash generated from/(used in) financing activities | 364 | (1,942) | | Net decrease in cash and cash equivalents | (316) | (1,973) | | Effect of foreign exchange rate changes, net | (1,171) | 933 | | Cash and cash equivalents at beginning of period | 3,334 | 1,849 | | Cash and cash equivalents at end of period | 1,847 | 809 | - Cash flow from operating activities shifted from a net inflow in the 2023 corresponding period to a net outflow in the 2024 corresponding period[26] - Cash flow from financing activities shifted from a net outflow in the 2023 corresponding period to a net inflow in the 2024 corresponding period[26] Notes to the Condensed Consolidated Financial Statements Provides detailed explanations and disclosures supporting the condensed consolidated financial statements 1. General Information China Regenerative Medicine International Limited, incorporated in the Cayman Islands and listed on GEM, operates as an investment holding company with subsidiaries primarily providing aesthetic medical, beauty, and medical services - The Company was incorporated in the Cayman Islands on April 20, 2001[27] - The Company's shares are listed on GEM of The Stock Exchange of Hong Kong Limited[27] - The principal businesses are providing (i) aesthetic medical and beauty services; and (ii) medical services[27] 2. Basis of Preparation The interim financial statements are prepared in accordance with HKAS 34 and GEM Listing Rules, with consistent accounting policies as the 2023 annual financial statements, and no significant impact from new HKFRSs, noting the restatement of 2023 comparative figures due to revenue recognition adjustments for agency business - The statements are prepared in accordance with HKAS 34 and the GEM Listing Rules[27] - The adoption of new or revised HKFRSs had no significant impact on the amounts or disclosures in the statements[28] Restatement Impact on Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Six Months Ended June 30, 2023 | Metric | Previously reported (HK$ '000) | Correction of misstatement (HK$ '000) | Restated (HK$ '000) | | :--- | :--- | :--- | :--- | | Revenue | 100,091 | (25,875) | 74,216 | | Cost of sales | (69,604) | 25,875 | (43,729) | | Gross profit | 30,487 | - | 30,487 | - The agency business ceased operations from May 2023 and made no contribution to the Group in the first half of 2024 (first half of 2023: net loss of approximately HK$897 thousand)[29][31] 3. Revenue and Other Income, Gains and Losses For the six months ended June 30, 2024, total Group revenue was HK$59,785 thousand, a decrease from the prior period, with a significant increase in revenue recognized at a 'point in time' and a substantial decrease in revenue recognized 'over time', while other income, gains, and losses primarily stemmed from government grants and other gains Revenue Recognition Methods (Six Months Ended June 30) | Revenue recognition method | 2024 (HK$ '000) | 2023 (HK$ '000) (Restated) | | :--- | :--- | :--- | | Revenue recognized after services provided: at a point in time | 25,742 | 3,291 | | Revenue recognized after services provided: over time | 34,043 | 70,925 | | Total revenue | 59,785 | 74,216 | Other Income, Gains and Losses (Six Months Ended June 30) | Item | 2024 (HK$ '000) | 2023 (HK$ '000) | | :--- | :--- | :--- | | Bank interest income | 3 | 9 | | Government grant income | 36 | – | | Gain on disposal of property, plant and equipment | – | 1 | | Others | 44 | 10 | | Total | 83 | 20 | 4. Segment Information The Group primarily operates in aesthetic medical and beauty services and medical services, with aesthetic medical and beauty services remaining the main revenue source, though external sales for both segments decreased, and Hong Kong contributed the vast majority of revenue, with emerging contributions from Mainland China - The Group's identified operating and reportable segments are: aesthetic medical and beauty services, and medical services[39][41] Segment Revenue and Results (Six Months Ended June 30) | Metric | Aesthetic medical and beauty services (HK$ '000) | Medical services (HK$ '000) | Total (HK$ '000) | | :--- | :--- | :--- | :--- | | 2024 | | | | | External sales and revenue | 56,799 | 2,986 | 59,785 | | Segment profit/(loss) | 28,844 | (1,872) | 26,972 | | 2023 (Restated) | | | | | External sales and revenue | 70,655 | 3,561 | 74,216 | | Segment profit | 29,028 | 1,316 | 30,344 | Geographical Location of Customer Revenue (Six Months Ended June 30) | Region | 2024 (HK$ '000) | 2023 (HK$ '000) (Restated) | | :--- | :--- | :--- | | Hong Kong | 59,368 | 74,216 | | China | 417 | – | | Total | 59,785 | 74,216 | 5. Finance Costs For the six months ended June 30, 2024, the Group's total finance costs increased to HK$638 thousand, primarily comprising interest on lease liabilities and shareholder loans Finance Costs Details (Six Months Ended June 30) | Item | 2024 (HK$ '000) | 2023 (HK$ '000) | | :--- | :--- | :--- | | Interest on lease liabilities | 314 | 540 | | Interest on shareholder loans | 324 | – | | Total | 638 | 540 | - Interest on shareholder loans arose from an unsecured, non-current shareholder loan of approximately HK$21,579 thousand bearing an annual interest rate of 3%[53][54] 6. Profit Before Tax For the six months ended June 30, 2024, the Group's profit before tax was HK$16,828 thousand, after deducting depreciation of property, plant and equipment, right-of-use assets, advertising and marketing expenses, cost of inventories sold, and employee benefit expenses Deductions from Profit Before Tax (Six Months Ended June 30) | Item | 2024 (HK$ '000) | 2023 (HK$ '000) (Restated) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 410 | 278 | | Depreciation of right-of-use assets | 5,235 | 5,432 | | Advertising and marketing (included in selling and distribution expenses) | 548 | 745 | | Cost of inventories sold | 4,757 | 3,838 | | Employee benefit expenses (including directors' emoluments) | 8,353 | 6,060 | - Employee benefit expenses significantly increased, reflecting higher personnel costs[55] 7. Income Tax Credit For the six months ended June 30, 2024, the Group made no provision for Hong Kong profits tax or PRC enterprise income tax due to sufficient tax losses available for offset in Hong Kong and no taxable profits generated in the PRC Income Tax Credit (Six Months Ended June 30) | Item | 2024 (HK$ '000) | 2023 (HK$ '000) | | :--- | :--- | :--- | | Current tax | – | – | | Deferred tax expense | – | 1,872 | | Total | – | 1,872 | - No provision for Hong Kong profits tax was made due to sufficient tax losses available for offset[59] - No provision for PRC enterprise income tax was made as no taxable profits were generated in the PRC during the period[58] 8. Dividends The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the prior corresponding period - No interim dividend is recommended for the six months ended June 30, 2024 (corresponding period in 2023: nil)[60] 9. Earnings Per Share For the six months ended June 30, 2024, both basic and diluted earnings per share attributable to owners of the Company were 5.53 HK cents, an increase from the prior period, with calculations reflecting the share consolidation on September 6, 2023, and no potential dilutive ordinary shares Earnings Per Share (Six Months Ended June 30) | Metric | 2024 (HK cents) | 2023 (HK cents) | | :--- | :--- | :--- | | Basic earnings per share | 5.53 | 4.47 | | Diluted earnings per share | 5.53 | 4.47 | Earnings Per Share Calculation Data (Six Months Ended June 30) | Metric | 2024 (HK$ '000/thousand shares) | 2023 (HK$ '000/thousand shares) | | :--- | :--- | :--- | | Profit attributable to owners of the Company used in calculating basic earnings per share | 16,828 | 12,762 | | Weighted average number of ordinary shares in issue (thousand shares) | 304,252 | 285,429 | - On September 6, 2023, every ten issued and unissued ordinary shares of the Company were consolidated into one share, and comparative figures have been restated accordingly[67] - Share options were not assumed to be exercised for diluted earnings per share calculation as their exercise price was higher than the average market price of the shares[66] 10. Trade Receivables, Deposits, Prepayments and Other Receivables As of June 30, 2024, total trade receivables, deposits, prepayments, and other receivables amounted to HK$129,175 thousand, a decrease from December 31, 2023, with trade receivables increasing and their aging structure becoming shorter-term Receivables Details (As of June 30) | Item | 2024 (HK$ '000) | December 31, 2023 (HK$ '000) | | :--- | :--- | :--- | | Trade receivables | 1,551 | 1,196 | | Deposits, prepayments and other receivables | 129,175 | 163,604 | | - Rental deposits | 5,657 | 5,657 | | - Other deposits | 888 | 1,328 | | - Prepayments | 96 | 189 | | - Other receivables (net of recognized impairment loss) | 122,534 | 156,430 | Aging Analysis of Trade Receivables (As of June 30) | Aging | 2024 (HK$ '000) | December 31, 2023 (HK$ '000) | | :--- | :--- | :--- | | 0–90 days | 1,403 | 646 | | 91–180 days | 3 | 235 | | 181–270 days | 143 | 310 | | 271–360 days | – | – | | Over 360 days | 2 | 5 | | Total | 1,551 | 1,196 | - The average credit period granted to customers by the Group is 60 to 180 days, consistent with the prior year-end[72] 11. Trade Payables As of June 30, 2024, total trade payables significantly increased to HK$5,512 thousand from December 31, 2023, primarily concentrated in the 0-30 days aging category Aging Analysis of Trade Payables (As of June 30) | Aging | 2024 (HK$ '000) | December 31, 2023 (HK$ '000) | | :--- | :--- | :--- | | 0–30 days | 2,446 | 2,099 | | 31–60 days | 1,226 | 374 | | 61–90 days | 1,667 | – | | 91–120 days | – | – | | 121–150 days | 173 | – | | Total | 5,512 | 2,473 | - The average credit period granted by suppliers to the Group is 30 to 60 days, consistent with the prior year-end[73] 12. Share Capital As of June 30, 2024, the company's authorized and issued and fully paid share capital remained unchanged at 304,252,480 ordinary shares with a par value of HK$0.20 each Share Capital Structure (As of June 30) | Item | Number of shares | Par value (HK$ '000) | | :--- | :--- | :--- | | Authorized share capital (ordinary shares of HK$0.20 each) | 500,000,000 | 100,000 | | Issued and fully paid share capital (ordinary shares of HK$0.20 each) | 304,252,480 | 60,850 | - The Company's share capital structure remained unchanged during the reporting period[74] 13. Related Party Transactions For the six months ended June 30, 2024, the Group's total remuneration for key management personnel was HK$609 thousand, a decrease from the prior corresponding period Key Management Personnel Remuneration (Six Months Ended June 30) | Item | 2024 (HK$ '000) | 2023 (HK$ '000) | | :--- | :--- | :--- | | Salaries and other benefits | 600 | 1,000 | | Contributions to retirement benefit schemes | 9 | 15 | | Total | 609 | 1,015 | 14. Events After the Reporting Period No significant events occurred after the reporting period up to the date of this report - No significant events occurred after the reporting period up to the date of this report[79] Management Discussion and Analysis Offers management's perspective on the group's operational performance, financial condition, and future outlook Business Review and Future Prospect In the first half of 2024, the Group's business experienced a stabilization period post-border reopening, falling short of explosive growth expectations, as the Hong Kong retail market was affected by changing consumption patterns and Mainland China's economic challenges constrained customer spending, prompting the Group to continuously evaluate its operations and explore opportunities to expand its healthcare business - Business in 2024 did not experience the anticipated explosive growth, showing a stabilization phenomenon after the initial surge following border reopening[81] - The Hong Kong retail market contracted due to residents' preference for leisure consumption in Mainland China, having a slight impact on the Group's business[81] - The challenging economic environment in China may limit customer purchasing power and willingness to spend[81] - The Group will continue to seek opportunities to expand its business scope in the healthcare industry and reallocate resources as appropriate[82] Financial Review The Group's revenue for the first half of 2024 decreased by 19.44% to HK$59.78 million, primarily due to the absence of the retaliatory consumption from Mainland Chinese customers seen in 2023, yet gross profit increased by 29.53% to HK$39.49 million, and profit for the period grew to HK$16.83 million, with significant increases in net current assets and net assets, improving liquidity Financial Performance Summary (Six Months Ended June 30) | Metric | 2024 (HK$ million) | 2023 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 59.78 | 74.22 | -19.44% | | Gross profit | 39.49 | 30.49 | +29.53% | | Profit for the period | 16.83 | 10.89 | +54.55% | | Total operating expenses | 22.11 | 19.08 | +15.88% | - The decrease in revenue was mainly due to the absence of the retaliatory consumption from Mainland Chinese customers in 2024 following the lifting of anti-epidemic measures in 2023[82] Assets and Liabilities Position (As of June 30) | Metric | 2024 (HK$ million) | December 31, 2023 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Net current assets | 34.66 | 20.79 | +66.71% | | Net assets | 25.14 | 11.79 | +113.23% | | Current assets | 132.87 | 168.58 | -21.29% | | Current liabilities | 98.21 | 147.79 | -33.54% | | Working capital ratio | 1.35 | 1.14 | +18.42% | | Debt-to-equity ratio | 1.64 | 2.99 | -45.15% | - The Group primarily funds its operations through internally generated cash flows and shareholder loans[83] Details of Future Plans for Material Investment or Capital Assets The Group is negotiating a RMB10.25 million (approximately HK$11.17 million) capital injection into Changzhou Bomei Biotechnology Co., Ltd. for approximately 33.3% equity, with no other specific material investment or capital asset plans as of June 30, 2024 - China Regenerative Medicine (Hong Kong) Health Technology Co., Ltd. is negotiating a capital increase and subscription agreement with Changzhou Xingkong Medical Aesthetic Clinic Co., Ltd. for Changzhou Bomei Biotechnology Co., Ltd[87] - China Regenerative Health will inject RMB10,250,000 (approximately HK$11,172,500) in cash, holding approximately 33.3% equity in the target company upon completion[87] - As of June 30, 2024, the Group had no other specific future plans for material investments or capital assets[87] Dividend The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the prior corresponding period - No interim dividend is recommended for the six months ended June 30, 2024 (corresponding period in 2023: nil)[87] Employee Information and Remuneration Policy As of June 30, 2024, the Group's employee count increased to 39, primarily located in Hong Kong and Mainland China, with total employee remuneration rising to approximately HK$8.35 million, and remuneration policy based on individual performance and experience - As of June 30, 2024, the Group had 39 employees (corresponding period in 2023: 29 employees), primarily located in Hong Kong and Mainland China[88] - For the six months ended June 30, 2024, total employee remuneration (including directors' emoluments and contributions to retirement benefit schemes) was approximately HK$8.35 million (corresponding period in 2023: approximately HK$6.06 million)[88] - Remuneration and bonus policies are determined with reference to employees' individual performance and experience[88] Other Information Covers additional disclosures including director and shareholder interests, share options, and corporate governance practices Directors and Chief Executives' Interests and Short Positions in Shares and Underlying Shares As of June 30, 2024, Mr. Wang Chuang, the Executive Director and CEO, held a long position in the Company's shares, representing 24.28% of the issued share capital, with no other directors or chief executives having disclosable interests or short positions Directors' and Chief Executives' Long Positions in Shares and Underlying Shares (As of June 30) | Name | Capacity | Total long position in shares and underlying shares | Approximate percentage of issued share capital | | :--- | :--- | :--- | :--- | | Wang Chuang | Beneficial owner | 73,875,530 | 24.28% | - Save for Mr. Wang Chuang, no other directors or chief executives had any interests or short positions in the shares, underlying shares, or debentures of the Company that were required to be notified[93] Substantial Shareholders and Other Persons' Interests in Shares and Underlying Shares As of June 30, 2024, several entities and individuals held significant long positions in the Company's shares, including Quan Hui Holdings Limited (19.15%), Mr. Ma Tak Man (19.18%), Mr. Wong Kwok Keung (19.18%), Mr. Li Ren (19.85%), China Orient Asset Management Co., Ltd. (5.18%), Changzhou Yaoguang Enterprise Management Consulting Partnership (Limited Partnership) (8.62%), and Changzhou Zhongmin Xingkong Enterprise Management Consulting Service Partnership (Limited Partnership) (5.28%) Substantial Shareholders' and Other Persons' Long Positions in Shares and Underlying Shares (As of June 30) | Name of shareholder | Capacity | Total long position in shares and underlying shares | Approximate percentage of issued share capital | | :--- | :--- | :--- | :--- | | Quan Hui Holdings Limited | Beneficial owner | 58,254,776 | 19.15% | | Ma Tak Man | Other | 58,342,276 | 19.18% | | Wong Kwok Keung | Other | 58,342,276 | 19.18% | | Li Ren | Interest in controlled corporation/Beneficial owner | 60,392,776 | 19.85% | | China Orient Asset Management Co., Ltd. | Interest in controlled corporation | 15,774,465 | 5.18% | | Changzhou Yaoguang Enterprise Management Consulting Partnership (Limited Partnership) | Interest in controlled corporation | 26,240,000 | 8.62% | | Lei Changjuan | Interest in controlled corporation | 26,240,000 | 8.62% | | Changzhou Zhongmin Xingkong Enterprise Management Consulting Service Partnership (Limited Partnership) | Interest in controlled corporation | 16,060,000 | 5.28% | | Kong Yushu | Interest in controlled corporation | 16,060,000 | 5.28% | - Quan Hui Holdings Limited has pledged its interest in 15,774,465 shares to Optimus[99] - Due to a bankruptcy order, Mr. Dai Yuk Man's property, including equity interests, has vested in the trustees Mr. Ma Tak Man and Mr. Wong Kwok Keung[99] Directors' Rights to Acquire Shares or Debentures For the six months ended June 30, 2024, no directors, their spouses, or children under 18 were granted or exercised any rights to acquire benefits through purchasing the Company's shares or debentures - For the six months ended June 30, 2024, no directors, their spouses, or children under 18 were granted or exercised any rights to acquire benefits through purchasing the Company's shares or debentures[103] Directors' Interest in Competing Business For the six months ended June 30, 2024, no directors, substantial shareholders, or their respective close associates held any interests in businesses that compete or are likely to compete with the Group's business - For the six months ended June 30, 2024, no directors or substantial shareholders held interests in competing businesses[107] Share Options The Company adopted a share option scheme in 2011 to incentivize participants, with two batches of unexercised share options remaining as of June 30, 2024, and no new grants, exercises, reclassifications, or lapses during the reporting period - The share option scheme was adopted on September 14, 2011, to provide incentives or rewards to eligible employees, suppliers, customers, and others[107] Overview of Share Option Movements (Six Months Ended June 30) | Date of grant | Adjusted exercise price (HK$) | Outstanding as of December 31, 2023 | Outstanding as of June 30, 2024 | | :--- | :--- | :--- | :--- | | September 16, 2015 | 90.00 | 330,200 | 330,200 | | September 9, 2016 | 58.20 | 390,520 | 390,520 | - For the six months ended June 30, 2024, there were no new grants, exercises, reclassifications, or lapses of share options[108][113] - The number of share options and their exercise prices have been adjusted due to two share consolidations on May 16, 2019, and September 6, 2023[120][121] Issue of Equity Securities For the six months ended June 30, 2024, the Company did not issue any equity securities - For the six months ended June 30, 2024, the Company did not issue any equity securities[122] Corporate Governance Practice The Company complied with all code provisions of the Corporate Governance Code in Appendix C1 of the GEM Listing Rules for the six months ended June 30, 2024, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Wang Chuang, which the Board believes aids business strategy execution and operational efficiency - The Company complied with all code provisions of the Corporate Governance Code, except for code provision C.2.1[122] - Mr. Wang Chuang holds both the Chairman and Chief Executive Officer roles, which the Board believes facilitates the execution of the Group's business strategies and enhances operational efficiency[122] Review of Interim Financial Statements by Audit Committee The Company's Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2024 - The Audit Committee, composed of three independent non-executive directors, has reviewed the Company's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2024[123] Securities Dealing Code The Company adopted the Securities Dealing Code for directors as set out in the GEM Listing Rules, and all directors confirmed full compliance with the required dealing standards for the six months ended June 30, 2024, following specific inquiries - The Company has adopted the Securities Dealing Code for directors as set out in Rules 5.48 to 5.67 of the GEM Listing Rules[123] - All directors confirmed full compliance with the required dealing standards for the six months ended June 30, 2024[123] Purchase, Sale or Redemption of Securities For the six months ended June 30, 2024, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - For the six months ended June 30, 2024, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[123] Event After the Reporting Period No significant events occurred after the reporting period up to the date of this report - No significant events occurred after the reporting period up to the date of this report[125]