Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 14,861,000, a decrease of 37.5% compared to HKD 23,768,000 for the same period in 2023[2] - Gross profit for the same period was HKD 9,858,000, down 30.5% from HKD 14,285,000 in 2023[2] - The net loss for the six months ended June 30, 2024, was HKD 8,983,000, an improvement of 17.4% compared to a net loss of HKD 10,883,000 in 2023[2][3] - Total comprehensive loss for the period was HKD 8,390,000, compared to HKD 9,483,000 in the previous year, indicating a 11.5% reduction in losses[3] - The company reported a basic loss per share of HKD 1.40, an improvement from HKD 1.64 in the same period last year[2] - The group reported a basic loss per share of HKD 5,606,000, compared to HKD 6,570,000 for the same period in 2023[27] - The group recorded a net loss attributable to equity holders of approximately HKD 5,600,000 for the six months ended June 30, 2024, compared to a net loss of approximately HKD 6,600,000 for the same period last year, primarily due to a reduction in net loss from Shanghai Hospital by approximately HKD 3,000,000[44] Assets and Liabilities - Non-current assets decreased to HKD 101,607,000 as of June 30, 2024, from HKD 107,999,000 as of December 31, 2023[4][6] - Current assets were HKD 21,749,000, a slight decrease from HKD 22,495,000 at the end of 2023[5] - Total liabilities decreased to HKD 245,248,000 from HKD 256,769,000, reflecting a reduction of 4.5%[6] - The total reported segment assets decreased from HKD 301,133,000 as of December 31, 2023, to HKD 290,701,000 as of June 30, 2024, indicating a decline of approximately 3.5%[20] - The total liabilities reported for the segments decreased from HKD 87,773,000 to HKD 83,910,000, representing a reduction of about 4.3%[19] - Accounts receivable as of June 30, 2024, totaled HKD 26,234,000, a slight decrease from HKD 27,379,000 at the end of 2023[30] - Accounts payable as of June 30, 2024, totaled HKD 6,991,000, an increase from HKD 4,326,000 as of December 31, 2023[37] Cash Flow and Financial Position - Cash and cash equivalents at the end of the period were HKD 20,793,000, compared to HKD 6,166,000 in the previous year, showing a significant increase[10] - Operating cash flow for the period was HKD 3,508,000, a turnaround from an outflow of HKD 16,127,000 in 2023[9] - As of June 30, 2024, cash and cash equivalents were HKD 20,793,000, slightly down from HKD 20,879,000 as of December 31, 2023[36] - The company has a net cash position of HKD 20,800,000 as of June 30, 2024, resulting in a debt-to-asset ratio of zero[63] - The total loans to third parties amounted to HKD 198,907,000, with an expected credit loss provision of HKD 69,654,000[34] Revenue Sources - The company generated revenue from external customers amounting to HKD 6,714,000 in interest income for the period, compared to HKD 15,574,000 in the previous period, showing a decline of 56.9%[18] - Revenue from medical-related services decreased to HKD 6,714,000 in the first half of 2024, down 57.1% from HKD 15,574,000 in the same period of 2023[21] - Interest income from third-party loans was HKD 8,147,000, slightly down from HKD 8,194,000 year-on-year[22] - The company confirmed third-party loan interest income of HKD 8,100,000 for the period, slightly down from HKD 8,200,000 in the same period last year[46] Expenses and Costs - Administrative expenses for the group included employee costs of HKD 6,920,000, down from HKD 11,271,000 in the same period last year[26] - Depreciation and amortization expenses for the company were HKD 4,176,000, down from HKD 4,528,000, indicating a decrease of 7.8%[18] - Depreciation of property, plant, and equipment was HKD 354,000, down from HKD 395,000 in the previous year[26] Segment Performance - Shanghai Hospital generated revenue of approximately HKD 5,900,000 and a net loss of approximately HKD 6,300,000 during the period, compared to revenue of approximately HKD 14,600,000 and a net loss of approximately HKD 9,300,000 in the same period last year[45] - The investment holding segment recorded a net loss of approximately HKD 9,400,000 before tax for the period, compared to a net loss of approximately HKD 6,500,000 in the same period last year, due to a net loss of approximately HKD 1,400,000 from realized and unrealized valuation of securities[47] - The company’s segment assets for the medical division increased from HKD 64,465,000 to HKD 71,066,000, marking an increase of approximately 10.5%[18] Corporate Governance and Compliance - The company has adopted the "Standard Code for Securities Transactions by Directors" and all directors have confirmed compliance throughout the reporting period[59] - The company is actively reviewing its corporate governance practices to ensure compliance with the Corporate Governance Code[55] - The company is seeking suitable candidates for executive director roles to comply with corporate governance requirements[55] - The board of directors guarantees the authenticity, accuracy, and completeness of the mid-term financial report for 2024, assuming individual and joint legal responsibility[71] Future Outlook and Strategy - The group plans to continue expanding its core medical business, particularly in plastic surgery and medical beauty services in China and other Asian markets[48] - Shanghai Hospital aims to enhance brand awareness and market share in 2024 by increasing marketing efforts and improving service quality[49] - The group will adopt more cautious credit assessments and procedures in its lending and related businesses due to the adverse effects of US-China trade tensions[50] - The group intends to monitor and adjust its investment portfolio to adapt to economic conditions, while exploring different short-term investment plans to improve returns[51] - The management is actively seeking other business opportunities to diversify and increase revenue sources[52] Legal and Regulatory Matters - The company is currently in litigation to recover unpaid loans from the second guarantor, with legal proceedings ongoing[58] - The company has initiated bankruptcy proceedings against the first guarantor, with a claim amounting to approximately USD 12,000,000[35] - There are no significant contingent liabilities reported as of June 30, 2024[62] Shareholder Information - Major shareholders include Tian Yuan Manganese Co., Ltd. holding 266,069,294 shares, representing 66.69% of the issued share capital, and Ningxia Tian Yuan Manganese Group Co., Ltd. holding 249,539,294 shares, representing 62.54%[70] - No interim dividend was declared for the first half of 2024, consistent with the previous year[29] - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[54] Miscellaneous - The company has not adopted any new accounting standards or amendments during the reporting period, maintaining consistency with previous financial statements[14] - The company has not engaged in any major acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[61] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[60] - No stock option plans are in place as of June 30, 2024[68] - No transfers occurred between the fair value measurement levels during the reporting periods[41]
天元医疗(00557) - 2024 - 中期财报