Financial Performance - The company reported a net loss of approximately HKD 38.6 million for the fiscal year 2024, compared to a net loss of approximately HKD 27 million in the previous year, primarily due to an increase in goodwill impairment losses of HKD 23.5 million[4]. - The healthcare segment generated revenue of approximately HKD 7.6 million, down from HKD 25.6 million in the previous year, with a net loss of approximately HKD 12.4 million, a decrease of HKD 5.5 million from the previous year's loss[7]. - The investment holding segment reported a total net loss of approximately HKD 6.3 million, compared to HKD 3.1 million in the previous year, with a pre-tax loss of approximately HKD 18 million[5]. - The group's revenue for fiscal year 2024 was HKD 26,845,000, a significant decrease from HKD 45,230,000 in fiscal year 2023[17]. - Basic loss per share for the fiscal year 2024 was HKD 0.0858, with tangible net asset value per share decreasing from HKD 0.41 to HKD 0.39[10]. - The group reported a basic loss per share of HKD 8.58 for fiscal year 2024, compared to HKD 3.88 for fiscal year 2023[17]. - The group’s total assets decreased to HKD 260,934,000 in fiscal year 2024 from HKD 302,954,000 in fiscal year 2023[18]. - The group’s net assets decreased to HKD 175,951,000 in fiscal year 2024 from HKD 215,181,000 in fiscal year 2023[18]. Revenue and Business Segments - The Shanghai hospital generated revenue of approximately HKD 7.6 million in fiscal year 2024, down from HKD 25.6 million in fiscal year 2023, attributed to a slowdown in consumer demand due to macroeconomic conditions in China[22]. - The company plans to expand its medical and aesthetic services in China and other Asian markets, anticipating growth in consumer spending in the medical beauty industry[11]. - New skincare products, including the DA mask and the Poaoyan brand, were launched at the end of 2024, aimed at enhancing revenue streams from existing hospital services[11]. - The DA mask is specifically designed for post-operative use in aesthetic medicine, with plans for extensive promotion through Shanghai Hospital's customer channels[12]. - The Poaoyan brand focuses on post-aesthetic skincare products, targeting existing customers of Shanghai Hospital to convert them into seed users for the brand[12]. Corporate Governance - The company is committed to high standards of corporate governance, ensuring compliance with the corporate governance code and providing regular updates to the board on performance and financial status[41]. - The board consists of five members, including one executive director and three independent non-executive directors, ensuring a balanced governance structure[45]. - The company has adopted a standard code for securities trading by directors, confirming compliance throughout the review year[44]. - The board's primary functions include formulating corporate policies and strategies, overseeing business management, and ensuring alignment with the company's culture and values[48]. - The company regularly reviews its corporate governance practices to ensure adherence to the governance code[43]. - The Remuneration Committee, consisting of three independent non-executive directors and one executive director, was established to review and recommend senior management compensation proposals[55]. - The company ensures that no director or their associates participate in decisions regarding their own remuneration, maintaining fairness and transparency[62]. Risk Management and Internal Controls - The company has established a robust risk management and internal control system aimed at achieving strategic goals and safeguarding shareholder investments[74]. - The risk management framework includes a three-tier structure involving the board, audit committee, and senior management to enhance risk management across the organization[75]. - The audit committee is tasked with ensuring the effectiveness of financial reporting processes and internal controls, including compliance and risk management[65]. - The company has mechanisms in place for employees to confidentially raise concerns regarding financial reporting and internal controls[69]. - The company has established a risk management framework and conducts annual risk assessments to identify potential strategic, operational, financial, and compliance risks[81]. Environmental, Social, and Governance (ESG) Initiatives - The company has implemented a top-down ESG management approach, with the board responsible for setting ESG strategies and assessing risks[147]. - The group has committed to reducing emissions through various policies, including promoting cleaner energy and improving energy efficiency[158]. - The group emphasizes stakeholder engagement to enhance its ESG strategy and identify improvement opportunities[150]. - The group focuses on sustainable development and community engagement as part of its corporate responsibility initiatives[149]. - The group has maintained compliance with environmental regulations, reporting no significant violations related to emissions or waste management during the reporting period[154]. Employee and Workforce Management - As of December 31, 2024, the company had a total of 34 employees, a decrease from 59 employees in 2023, primarily due to high turnover influenced by the economic environment[181]. - The employee gender ratio in 2024 was 41% female and 59% male, compared to 32% female and 68% male in 2023[184]. - The overall employee turnover rate for the group was 15.9% in 2024, compared to 15.6% in 2023[198]. - The company emphasizes employee health and safety, providing various healthcare plans and regular emergency drills[199]. - The group adheres strictly to relevant occupational health and safety laws in China, including regulations specific to the medical beauty industry[200].
天元医疗(00557) - 2024 - 年度财报