Financial Performance - The Group's consolidated revenue for 2024 was approximately HK$149,945,000, representing an increase of 6.8% compared to 2023[17]. - The loss for the year increased to HK$115,575,000 in 2024, up from HK$61,721,000 in 2023[17]. - The Group's annual loss expanded to HK$115,575,000 in 2024, compared to HK$61,721,000 in 2023, while total revenue increased by 6.8% year-on-year to approximately HK$149,945,000[23]. - Operating revenue from the sales business of medical and geriatric products increased by 5.7% year-on-year to HK$135,907,000[21]. - The cost of sales increased by 12.2% year-on-year to approximately HK$114,265,000, which includes costs related to purchases, freight, installation fees, and wage expenses[87][93]. - The overall gross profit margin decreased to 23.8% from 27.4% in the previous year, attributed to a change in product mix with increased sales of lower-margin educational products[88][94]. - Other income and gains/(losses), net amounted to a loss of approximately HK$15,678,000, a significant decrease from a gain of HK$36,084,000 in the previous year, mainly due to reduced interest income and an exchange loss of HK$29,290,000[95][101]. - Selling and distribution expenses were approximately HK$14,331,000, representing 9.6% of total sales, a slight decrease from 9.9% in 2023[97][102]. - Administrative expenses decreased by 9.8% to HK$80,716,000 from HK$89,476,000 in 2023, primarily due to the implementation of a tightening expense policy[99][103]. - The Group's net assets decreased to approximately HK$1,740,426,000, down by HK$214,122,000 from HK$1,954,548,000 as of December 31, 2023[116]. - The Group's cash and cash equivalents were approximately HK$77,865,000 as of December 31, 2024, a decrease of approximately HK$75,459,000 from HK$153,324,000 as of December 31, 2023[117]. Geriatric Care Operations - The Group operated 6 geriatric care institutions with a total of 1,243 geriatric beds, including 849 medical beds[19]. - Revenue from the geriatric care business in 2024 was approximately HK$14,038,000[19]. - The average occupancy rate of the geriatric care institutions was approximately 72%[19]. - Each geriatric care institution achieved a break-even position and continued to provide positive cash flow for the Group[19]. - The Group plans to increase the number of geriatric care beds by 500 in the coming year[19]. - Revenue from the geriatric care institutions reached RMB45.08 million in 2024, representing an 8% year-on-year increase from RMB41.81 million in 2023[35]. - The overall occupancy rate for the facilities was 72% in 2024, down from 79% in 2023[39]. - In 2024, Guangyi Geriatric Care Center and Nursing Home achieved operating revenue of RMB20.74 million, with an occupancy rate of 92%[41]. - Wuhe Geriatric Care Center and Nursing Home reported operating revenue of RMB5.88 million, with a decline in occupancy rate to 57% due to renovations[43]. - Xuejia Aixin Geriatric Care Center and Nursing Home achieved operating revenue of RMB11.30 million, representing a year-on-year increase of 17% and an occupancy rate of 78%[48]. - Huifeng Geriatric Care Center reported operating revenue of RMB1.48 million, a year-on-year increase of 21%, with an occupancy rate of 44%[50]. - Wuhu Golden Sun Geriatric Care Center achieved operating revenue of RMB4.58 million, representing a year-on-year increase of 9% and an occupancy rate of 95%[52]. - The newly opened Changzhou Luoxi District Geriatric Care Center and Nursing Home has an occupancy rate of 34% since its operations began in May 2024[53]. - The occupancy rate of the newly opened Changzhou Luoxi District Geriatric Care Center is expected to gradually increase, contributing to future revenue growth[62]. Strategic Initiatives and Future Plans - The Group plans to enhance integrated medical and geriatric care services, which is expected to improve future performance[50]. - The Group signed a cooperation agreement for the Ancient Canal Cultural and Creative Building Health Care Project, which plans to establish approximately 450 integrated medical and geriatric care beds, expected to commence in the first half of 2025[59]. - The health care project in Rizhao is set to provide approximately 116 beds, focusing on integrated medical and geriatric care services[60]. - The Group's Wuxi Ancient Canal Nursing Home project is expected to add approximately 450 operating beds by 2025, enhancing urban healthcare services[78]. - The Group plans to accelerate the government approval process for the Royal Tower project in Canada to expand its real estate business despite recent interest rate hikes[79]. - The company aims to intensify the development of medical and geriatric products, focusing on the education industry and expanding sales channels in North America[80]. Corporate Governance and Compliance - The company has complied with the Corporate Governance Code throughout the year ended December 31, 2024, ensuring high standards of corporate governance[146][153]. - The Board regularly reviews the company's strategic focus to ensure alignment with its vision and corporate culture[155]. - The company has established an employee handbook to provide necessary cultural guidance to all employees[156]. - The Board currently consists of 9 members, including 5 Executive Directors and 4 Independent Non-executive Directors[159]. - The company has complied with Listing Rules regarding the appointment of at least three independent non-executive directors, representing at least one-third of the board[165]. - The Audit Committee held two meetings during the year to review financial results and compliance procedures[196]. - The Company's annual results for the year ended December 31, 2024, have been reviewed by the Audit Committee[197]. - The Audit Committee comprises four members, all of whom are Independent Non-executive Directors[195]. - All Directors confirmed compliance with the Model Code for Securities Transactions throughout the year ended December 31, 2024[188]. - The Board has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Investment and Risk Management Committee[190]. - The majority of members of each Board committee are Independent Non-executive Directors[191]. - The Company ensures compliance with relevant legal and regulatory requirements, including the CG Code[186]. Investments and Financial Position - The Group's liquidity position remained strong with a current ratio of 4 times and net current assets of HK$414,105,000 as of December 31, 2024[118]. - The Group has contingent liabilities of up to RMB28,000,000 (approximately HK$30,238,000) as a guarantor for a bank facility granted to an associate[127]. - The Group's share of losses from a joint venture was approximately HK$13,446,000, an increase from HK$5,728,000 in 2023, primarily due to rising interest expenses[108]. - The Group's share of losses from associates included approximately HK$5,727,000 from Beijing Sports and Entertainment Industry Group Limited and HK$10,277,000 from Shanghai Junbo Textiles Limited[109]. - The Group acquired a 12.7637% equity interest in Beijing Lugang International Logistic Co., Ltd. for RMB48,000,000 (approximately HK$52,968,000) at the beginning of the year[116]. - The Group's capital expenditure increased to approximately HK$6,638,000 in 2024, compared to HK$1,372,000 in 2023[125]. - Capital expenditure for the year ended December 31, 2024, was approximately HK$6,638,000, significantly up from HK$1,372,000 in 2023, primarily for the acquisition of properties, plants, and equipment[131]. - The company had no mortgaged assets as of December 31, 2024, and December 31, 2023[132]. - The contingent liabilities related to bank financing for an associate company amounted to a maximum of RMB 28,000,000 (approximately HK$30,238,000) as of December 31, 2024, compared to RMB 28,000,000 (approximately HK$30,898,000) in 2023[133].
北京健康(02389) - 2024 - 年度财报