Financial Performance - China Healthwise Holdings Limited reported total revenue of HKD 146,317,000 for the year ending December 31, 2024, compared to HKD 113,575,000 for the previous year, representing a year-over-year increase of 29%[2] - The gross profit for the year was HKD 37,349,000, down from HKD 60,294,000 in the previous year, indicating a decrease of 38%[2] - The net loss for the year was HKD 40,281,000, compared to a net loss of HKD 134,558,000 in the previous year, showing an improvement of 70%[2] - The basic and diluted loss per share was HKD 0.092 (9 cents), improved from HKD 0.1746 (17.46 cents) in the previous year[4] - For the fiscal year ending December 31, 2024, the company reported a net loss of approximately HKD 40,428,000[9] - The total segment loss before tax for the year ending December 31, 2024, was HKD 22,621,000, compared to a loss of HKD 118,344,000 in 2023, indicating an improvement in performance[20] - The company reported a pre-tax loss of HKD 79,374 million, a decrease from HKD 70,759 million in the previous year[28] - The group recorded a total loss attributable to shareholders of about HKD 40 million for the reporting year, compared to approximately HKD 135 million in fiscal year 2023[61] Revenue and Income Sources - Revenue from major business operations for the year is detailed, with specific figures for customer contract income and other sources of income[15][16] - Customer contract income for the year was reported at HKD 112,832 thousand, compared to HKD 129,523 thousand in the previous year, indicating a decline[16] - External customer revenue for the year ending December 31, 2024, was HKD 113,575,000, a decrease from HKD 146,317,000 in 2023, representing a decline of approximately 22.3%[20] - Revenue from the investment financial instruments segment decreased from a net income of approximately HKD 6 million in the previous fiscal year to a net loss of less than HKD 1 million in the current fiscal year[43] - Revenue from the traditional Chinese medicine health products segment decreased from approximately HKD 130 million in the previous fiscal year to about HKD 113 million in the current fiscal year[43] - The traditional Chinese medicine health products segment contributed approximately HKD 113 million in revenue and incurred a loss of about HKD 6 million before tax in the current fiscal year[44] Assets and Liabilities - As of December 31, 2024, the company's total liabilities amounted to approximately HKD 18,838,000[9] - The company's current assets increased from HKD 113,250,000 in 2023 to HKD 139,655,000 in 2024, representing a growth of approximately 23.3%[5] - The total assets for the reporting segments decreased from HKD 146,778,000 in 2023 to HKD 119,557,000 in 2024, reflecting a reduction of about 18.6%[22] - The total liabilities for the reporting segments decreased from HKD 145,272,000 in 2023 to HKD 140,426,000 in 2024, showing a decline of approximately 3.9%[22] - The company's current and non-current borrowings were HKD 32,572,000 and HKD 63,330,000, respectively[9] - The company's total liabilities amounted to approximately HKD 18.38 million as of December 31, 2024[40] - The debt-to-asset ratio is approximately 79%, compared to 67% on December 31, 2023[71] Cash Flow and Financial Management - The company is implementing measures to improve cash flow, including recovering receivables and cost-saving initiatives[9] - The company aims to meet its operational funding needs through improved cash flow from operations[9] - The board has reviewed the group's cash flow forecast, which covers a period of not less than twelve months from the end of the reporting period[10] - The group believes it will have sufficient working capital to meet its operational and financial obligations for the next twelve months[10] - The group is considering measures to improve cash flow, including recovering outstanding receivables and controlling operational costs[13] - The group anticipates challenges in the lending business environment due to expected high HKD interest rates in 2025, which may deter potential borrowers[67] - The group will closely monitor customer repayment habits and develop action plans for debt recovery as risks increase[67] Operational Efficiency and Cost Management - The company reported a significant increase in operating expenses, with general and administrative expenses rising to HKD 26,414,000 from HKD 37,529,000, a decrease of 30%[2] - Employee costs, including director remuneration, totaled HKD 28,966,000 for the year, with HKD 19,408,000 attributed to the herbal health product segment[23] - Selling and distribution expenses increased to approximately HKD 29 million, a rise of about 4% compared to the previous fiscal year[57] - General and administrative expenses decreased to approximately HKD 26 million from HKD 38 million in fiscal year 2023, attributed to cost-saving measures implemented during the reporting year[58] - Financing costs amounted to approximately HKD 8 million, down from about HKD 9 million in fiscal year 2023[59] Credit Risk and Impairment - The company reported a net impairment loss on receivables of HKD 107,469 million, indicating significant credit risk exposure[24] - The expected credit loss provision for receivables was HKD 300,087,000 in 2024, compared to HKD 294,218,000 in 2023, reflecting an increase in provisions[34] - The expected credit loss model provisions for impairment losses decreased significantly to about HKD 2 million from approximately HKD 107 million in the previous fiscal year[60] - The group recognized an expected credit loss of approximately HKD 2 million for the fiscal year, a decrease from HKD 107 million in the previous fiscal year[50] Market Conditions and Strategic Initiatives - The company faced a challenging economic environment, particularly in local retail, which negatively impacted revenue due to changing consumer spending patterns[45] - The local retail business is expected to face challenges due to inflation, hiring difficulties, and rising operational costs, prompting the management team to implement cost control measures[64] - The group plans to enhance the promotion of convenient health food products, including various herbal teas and health supplements, targeting local consumers and the younger demographic[65] - The company plans to enhance its market presence through new product development and strategic investments in the herbal health product segment[21] - The group aims to diversify its revenue sources through investments or acquisitions of businesses with broad prospects[69]
中国智能健康(00348) - 2024 - 年度业绩