美瑞健康国际(02327) - 2025 - 中期业绩

Interim Results Announcement This report details the Group's unaudited interim results for H1 2025, covering financial performance, business operations, and strategic outlook Interim Condensed Consolidated Financial Statements The Group's H1 2025 unaudited interim financial statements show significant profit growth and stable assets, despite a net cash outflow from operations Interim Condensed Consolidated Statement of Profit or Loss This statement details the Group's revenue, gross profit, and net profit for the period, highlighting significant profit growth | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 17,453 | 30,033 | | Gross Profit | 14,161 | 15,393 | | Profit Before Tax | 15,907 | 8,025 | | Profit for the Period | 15,144 | 8,230 | | Profit Attributable to Owners of the Company | 15,157 | 8,465 | | Basic and Diluted Earnings Per Share | 0.37 HK cents | 0.21 HK cents | - Profit for the period increased by 84.01% year-on-year, from HK$8,230 thousand to HK$15,144 thousand, primarily due to a significant increase in profit before tax[4] Interim Condensed Consolidated Statement of Comprehensive Income This statement presents the Group's total comprehensive income, reflecting profit for the period and other comprehensive income items | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit for the Period | 15,144 | 8,230 | | Other Comprehensive Income/(Loss) | 27,351 | (27,349) | | Total Comprehensive Income/(Loss) for the Period | 42,495 | (19,119) | | Total Comprehensive Income/(Loss) Attributable to Owners of the Company | 42,534 | (18,905) | - Total comprehensive income for the period turned from a loss of HK$19,119 thousand in the same period of 2024 to a profit of HK$42,495 thousand in 2025, mainly due to the positive impact of exchange differences on translation of overseas operations[5] Interim Condensed Consolidated Statement of Financial Position This statement provides a snapshot of the Group's assets, liabilities, and equity, indicating a continuously improving financial position | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Non-current Assets | 999,045 | 980,356 | | Current Assets | 750,044 | 688,295 | | Current Liabilities | 183,750 | 158,342 | | Net Current Assets | 566,294 | 529,953 | | Total Assets Less Current Liabilities | 1,565,339 | 1,510,309 | | Non-current Liabilities | 346,403 | 308,945 | | Net Assets | 1,218,936 | 1,201,364 | | Total Equity | 1,218,936 | 1,201,364 | - As of June 30, 2025, total assets increased to HK$1,749,089 thousand and net assets increased to HK$1,218,936 thousand, demonstrating a continuous improvement in financial position[6][7] Interim Condensed Consolidated Statement of Cash Flows This statement outlines the Group's cash movements from operating, investing, and financing activities, showing a shift to net cash outflow from operations | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net Cash (Used in)/Generated from Operating Activities | (13,361) | 109,286 | | Net Cash Used in Investing Activities | (22,067) | (201,295) | | Net Cash Generated from/(Used in) Financing Activities | 15,092 | (6,368) | | Net Decrease in Cash and Cash Equivalents | (20,336) | (98,377) | | Cash and Cash Equivalents at End of Period | 9,947 | 6,643 | - Net cash flow from operating activities turned from a net inflow of HK$109,286 thousand in the same period of 2024 to a net outflow of HK$13,361 thousand in 2025[8] - Net cash flow from financing activities turned from a net outflow of HK$6,368 thousand in the same period of 2024 to a net inflow of HK$15,092 thousand, primarily from new bank loans[8] Notes to Interim Condensed Consolidated Financial Statements This section provides supplementary information on the preparation basis, accounting policies, segment information, asset and liability composition, and earnings per share calculation General Information This section provides fundamental information about the company's registration, listing, and primary business activities - The company is incorporated in Bermuda, and its shares are listed on the Main Board of the Stock Exchange[9] - The Group's principal businesses include health and medical, trading of building materials and new energy products, property sales agency, property investment and leasing, residential property development, and new energy product procurement services[9] Basis of Preparation This section details the accounting standards and methods used in preparing the interim condensed consolidated financial statements - The interim condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules issued by the Hong Kong Institute of Certified Public Accountants[10] - The accounting policies and methods of computation adopted are consistent with those used in the annual consolidated financial statements for the year ended December 31, 2024[10] Adoption of New and Revised HKFRSs This section addresses the impact of new and revised Hong Kong Financial Reporting Standards on the Group's financial reporting - The adoption of new and revised HKFRSs has not caused any significant changes to the Group's accounting policies, financial statement presentation, or reported amounts[11] Revenue and Segment Information This section provides a breakdown of the Group's revenue and financial performance across its various reportable business segments Reportable Segments This section identifies the distinct business segments through which the Group operates and reports its financial results - The Group has four reportable segments: health and medical related business, trading business, property related business, and equity investment business[12] Segment Revenue and Results This section presents the revenue and profit or loss generated by each of the Group's reportable business segments Segment Revenue and Results (HK$ thousand) | Segment | 2025 Revenue | 2025 Segment Profit/(Loss) | 2024 Revenue | 2024 Segment Profit/(Loss) | | :--- | :--- | :--- | :--- | :--- | | Health and Medical Related Business | 6,601 | 65 | 11,480 | 1,100 | | Trading Business | 810 | (1,016) | 10,327 | 6,594 | | Property Related Business | 10,042 | 6,056 | 8,226 | (16,022) | | Equity Investment Business | – | (841) | – | 16,634 | | Total | 17,453 | 4,264 | 30,033 | 8,306 | - Property related business turned from a loss in the same period of 2024 to a profit in 2025, while trading business and equity investment business turned from profit to loss[13] Segment Assets and Liabilities This section details the assets and liabilities allocated to each of the Group's reportable business segments Segment Assets (HK$ thousand) | Segment | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Health and Medical Related Business | 16,108 | 13,134 | | Trading Business | 51,610 | 90,501 | | Property Related Business | 1,013,748 | 929,544 | | Equity Investment Business | 117,604 | 116,418 | | Total Reportable Segment Assets | 1,199,070 | 1,149,597 | Segment Liabilities (HK$ thousand) | Segment | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Health and Medical Related Business | 46,366 | 41,337 | | Trading Business | 113,301 | 107,532 | | Property Related Business | 248,572 | 217,585 | | Equity Investment Business | 847 | 122 | | Total Reportable Segment Liabilities | 409,086 | 366,576 | - Both assets and liabilities of the property related business showed significant growth, reflecting the expansion of this segment[14] Revenue Breakdown This section provides a detailed analysis of the Group's total revenue by source, highlighting key changes and trends Total Revenue (HK$ thousand) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Sales of health and medical related products | 2,121 | 5,668 | | Health and medical management service income | 1,985 | 1,933 | | Medical aesthetic service income | 2,317 | 3,273 | | Sales of building materials | – | 8,718 | | Sales of new energy products | 589 | 222 | | Sales agency service income for health and medical related products | 221 | 1,387 | | Sales of CBD downstream products | 178 | 606 | | Revenue from contracts with customers | 7,411 | 21,807 | | Rental income | 10,042 | 8,226 | | Total Revenue | 17,453 | 30,033 | - Total revenue decreased by 41.7% year-on-year, primarily due to a decrease of approximately HK$8.7 million in building materials sales and approximately HK$3.5 million in health and medical related product sales[15][39] - Rental income grew against the trend, increasing from HK$8,226 thousand to HK$10,042 thousand[15] Finance Costs This section details the Group's borrowing costs incurred during the period, primarily from bank loans and lease liabilities | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest on bank loans | 4,769 | 6,141 | | Interest on lease liabilities | 35 | 10 | | Total | 4,804 | 6,151 | - Finance costs decreased by 22.6% year-on-year, mainly due to a decrease in the average interest rate of bank loans[19][45] Income Tax Expense/(Credit) This section presents the Group's income tax expenses or credits for the period, including current and deferred tax components | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current income tax expense | 554 | 3,750 | | Deferred income tax expense/(credit) | 209 | (3,955) | | Total | 763 | (205) | - Income tax turned from a credit of HK$205 thousand in the same period of 2024 to an expense of HK$763 thousand in 2025[20] - China's corporate income tax rate is 25%, with 5% for small low-profit enterprises and 15% for high-tech enterprises; Australia's corporate income tax rate is 30%; Hong Kong's profits tax rate is 16.5%, with 8.25% for the first HK$2 million[20][21] Profit for the Period This section outlines the various non-recurring and fair value adjustments that influenced the Group's net profit for the period | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Impairment loss on receivables, net/(reversal of impairment loss) | 1,166 | (4,222) | | Impairment loss on investment in an associate | 461 | – | | Loss on partial disposal of investment in a joint venture | 127 | – | | Fair value (gain) on investments at fair value through profit or loss | (868) | (17,835) | | Net exchange (gain) | (5,794) | (4,366) | | Provision for equity-settled share option expense | 62 | 109 | - Profit for the period was affected by several non-recurring items, including impairment loss on receivables, impairment loss on investments, fair value gains, and exchange gains[22] Dividends This section reports the interim dividend declared by the Board and the final dividend paid for the previous financial year - The Board has declared an interim dividend of 0.15 HK cents per share for the six months ended June 30, 2025 (2024: nil)[23] - The 2024 final dividend of 0.4 HK cents per share was paid on August 20, 2025, totaling approximately HK$16,375,000[23] Earnings Per Share This section details the calculation of basic and diluted earnings per share, reflecting the profit attributable to ordinary shareholders | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit attributable to owners of the Company for basic and diluted earnings per share | 15,157 | 8,465 | | Weighted average number of ordinary shares | 4,064,710,835 | 4,092,562,636 | - Basic and diluted earnings per share were 0.37 HK cents, an increase from 0.21 HK cents in the same period of 2024[4] - Share options had no dilutive effect as the average market price of the company's shares was below the assumed exercise price[27] Investment Properties This section provides a reconciliation of the carrying amount of the Group's investment properties, including additions and fair value adjustments | Item | June 30, 2025 (HK$ thousand) | January 1, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Carrying amount at beginning of period | 610,292 | 598,509 | | Additions | 7,024 | 8,131 | | Fair value gain | – | 23,813 | | Exchange differences | 18,330 | (20,161) | | Carrying amount at end of period | 635,646 | 610,292 | - The carrying amount of investment properties increased to HK$635,646 thousand, mainly due to additions and positive exchange differences[29] Trade Receivables This section presents an aging analysis of the Group's trade receivables, indicating their collectability and potential credit risk | Aging | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 3,042 | 4,480 | | 31 to 90 days | 46 | 14,886 | | Over 90 days | 16,193 | 7,875 | | Total | 19,281 | 27,241 | - Total trade receivables decreased to HK$19,281 thousand, with the proportion of those over ninety days increasing[31] Prepayments, Deposits and Other Receivables This section details the composition of the Group's prepayments, deposits, and other receivables, including loans and advances | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Loans and interest receivable, net | 523,360 | 467,126 | | Prepayments to suppliers | 39,431 | 32,412 | | Deposits for pre-sale properties under development | 23,736 | 15,982 | | Performance bonds receivable | 27,395 | 58,531 | | Total | 628,560 | 594,183 | - Loans and interest receivable, net, increased to HK$523,360 thousand, including approximately HK$219,160 thousand lent to Guangyu Zhaoneng, with the remainder to third parties[32][33] Restricted Bank Deposits This section describes the nature and amount of bank deposits that are restricted from immediate use, typically as collateral - Restricted bank deposits amounted to HK$7,035 thousand, denominated in AUD, serving as collateral for bank loans[34] Trade Payables This section provides an aging analysis of the Group's trade payables, reflecting its short-term obligations to suppliers | Aging | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 90 days | 31 | – | | Over 90 days | 10 | 10 | | Total | 41 | 10 | - Total trade payables increased to HK$41 thousand, primarily from amounts due within zero to ninety days[35] Share Capital This section outlines the Group's authorized and issued share capital, detailing the number of shares and their par value | Item | Number of Shares | Amount (HK$ thousand) | | :--- | :--- | :--- | | Authorized share capital (par value HK$0.01 per share) | 10,000,000,000 | 100,000 | | Issued and fully paid share capital (par value HK$0.01 per share) | 4,093,756,636 | 40,938 | - Issued and fully paid share capital remained unchanged at 4,093,756,636 shares, amounting to HK$40,938 thousand[35] Capital Commitments This section reports the Group's contractual obligations for future capital expenditures, primarily related to investments and property development | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Capital injection into an associate | 10,465 | 10,163 | | Construction cost commitments for properties under development for sale | 63,210 | 86,030 | | Total | 73,675 | 96,193 | - Total capital commitments decreased to HK$73,675 thousand, mainly due to a reduction in construction cost commitments for properties under development for sale[36] Management Discussion and Analysis Management reviews the Group's financial performance and business operations for the six months ended June 30, 2025, noting improved profitability despite revenue decline Financial Review This section provides a detailed analysis of the Group's key financial performance indicators, including revenue, profit, and expenses Revenue This section analyzes the Group's total revenue for the period, highlighting the primary drivers of changes | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 17,453 | 30,033 | - Revenue decreased by 41.7% year-on-year to approximately HK$17.5 million, primarily due to a decrease of approximately HK$8.7 million in building materials sales and approximately HK$3.5 million in health and medical related product sales[39] Gross Profit and Gross Margin This section examines the Group's gross profit and gross margin, explaining the factors contributing to their changes | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Gross Profit | 14,161 | 15,393 | | Gross Margin (%) | 81.1 | 51.3 | - Gross profit decreased by approximately 7.8% to HK$14.2 million, mainly due to a HK$3.2 million decrease in gross profit from health and medical related business, partially offset by a HK$1.8 million increase in gross profit from property related business[40][42] - Gross margin significantly increased to 81.1%, primarily due to a decrease in the proportion of trading business (with lower gross margin) to total revenue[40][42] Other Income and Gains, Net This section details the various components of the Group's other income and gains, net, and their impact on overall profitability | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Other Income and Gains, Net | 22,647 | 32,599 | - Other income and gains, net, decreased by approximately 30.7% to HK$22.6 million, mainly due to a significant decrease in fair value gains on investments at fair value through profit or loss (from HK$17.8 million to HK$0.9 million)[43] - The decrease was partially offset by an increase in exchange gains (from HK$4.4 million to HK$5.8 million) and interest income (from HK$8.9 million to HK$14.8 million)[43] Total Operating Expenses This section reviews the Group's total operating expenses, identifying the main categories and reasons for their fluctuations | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total Operating Expenses | 13,254 | 15,889 | - Total operating expenses decreased by approximately 16.4% to HK$13.3 million, mainly due to a decrease of approximately HK$0.8 million in pre-sale commissions and rental expenses for Australian residential property development projects, and a decrease of approximately HK$0.9 million in marketing and promotion expenses[44] Finance Costs This section analyzes the Group's finance costs, primarily focusing on interest expenses from bank loans | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Finance Costs | 4,804 | 6,151 | - Finance costs decreased by approximately 22.6% to HK$4.8 million, mainly due to a decrease of approximately HK$1.4 million in interest expenses resulting from lower average interest rates on bank loans[45] Profit After Tax This section discusses the Group's profit after tax, highlighting the key factors that contributed to its significant increase | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit After Tax | 15,144 | 8,230 | - Profit after tax increased by approximately 84.1% year-on-year to HK$15.1 million, primarily benefiting from increased property related business income and profit, higher interest income, and positive exchange gains[46][48] - The increase was partially offset by a decrease in fair value gains on investments at fair value through profit or loss (from HK$17.8 million to HK$0.9 million) and an impairment loss on receivables (from a reversal of HK$4.5 million to a loss of HK$1.3 million)[46] Business Review This section provides an overview of the performance of each of the Group's core business segments during the period Health and Medical Related Business This section reviews the performance of the Group's health and medical related business, noting a decline in revenue and profit | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 6,601 | 11,500 | | Segment Profit | 100 | 1,100 | - Health and medical related business revenue decreased by approximately 42.6% to HK$6.6 million, and segment profit decreased by approximately 90.9% to HK$0.1 million[47] - The decrease in revenue and profit was mainly due to a HK$3.2 million decline in gross profit from reduced sales orders for health and medical related products, partially offset by effective control of operating expenses (a HK$1.8 million reduction)[47] Trading Business This section analyzes the performance of the Group's trading business, which experienced a significant decline in revenue and shifted to a loss | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 800 | 10,300 | | Segment Profit/(Loss) | (1,000) | 6,600 | - Trading business revenue decreased by approximately 92.2% to HK$0.8 million, and turned from a profit of approximately HK$6.6 million in the same period of 2024 to a loss of approximately HK$1.0 million[49] - This was primarily attributable to reduced international trade sales and a change in impairment provision for trade and other receivables (from a reversal of impairment loss of approximately HK$4.5 million to an impairment loss of approximately HK$1.3 million)[49] Property Related Business This section reviews the performance of the Group's property related business, which saw revenue growth and a turnaround to profit | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 10,000 | 8,200 | | Segment Profit/(Loss) | 6,100 | (16,000) | - Property related business revenue increased by approximately 22.0% to HK$10.0 million, and turned from a loss of approximately HK$16.0 million in the same period of 2024 to a profit of approximately HK$6.1 million[50] - The improved performance was mainly due to no significant change in the fair value of investment properties (compared to a significant decrease in the same period of 2024) and an increase in rental income of approximately HK$1.8 million[50] - Civil works for the Australian residential property development project (Yarrabend, Melbourne) have been completed, with pre-sales commencing in November 2022[50] Equity Investment Business This section discusses the performance of the Group's equity investment business, which shifted from a profit to a loss | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Segment Profit/(Loss) | (800) | 16,600 | - Equity investment business turned from a profit of approximately HK$16.6 million in the same period of 2024 to a loss of approximately HK$0.8 million[51] - This was primarily due to a decrease in revenue and profit from equity investment entities, leading to a decline in fair value gains on investments at fair value through profit or loss (from HK$17.8 million to HK$0.9 million), and a loss of approximately HK$0.1 million from the partial disposal of an investment in a joint venture[51] Financial Position Review This section provides an analysis of the Group's balance sheet, detailing changes in non-current assets, current assets, liabilities, and net assets Non-current Assets This section reviews the changes in the Group's non-current assets, identifying the main drivers of their increase | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 999,045 | 980,356 | - Non-current assets increased by approximately HK$18.6 million to HK$999.0 million, mainly due to an increase of approximately HK$25.3 million in investment properties and approximately HK$2.3 million in investments at fair value through profit or loss[53] - The increase was partially offset by a decrease of approximately HK$3.6 million in investments in joint ventures and approximately HK$3.6 million in deferred tax assets[53] Current Assets This section analyzes the changes in the Group's current assets, highlighting increases in properties under development and receivables | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total Current Assets | 750,044 | 688,295 | - Current assets increased by approximately HK$61.8 million to HK$750.1 million, mainly due to an increase of approximately HK$54.3 million in properties under development for sale and approximately HK$35.4 million in prepayments, deposits, and other receivables[53] - The increase was partially offset by a decrease of approximately HK$20.0 million in bank and cash balances and approximately HK$8.0 million in trade receivables[53] Liabilities This section details the changes in the Group's total liabilities, primarily driven by increases in bank borrowings and dividends payable | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total Liabilities | 530,153 | 467,287 | - Total liabilities increased by approximately HK$62.8 million to HK$530.1 million, mainly due to an increase of approximately HK$43.1 million in bank borrowings, approximately HK$16.4 million in dividends payable, and approximately HK$6.1 million in contract liabilities[54] - The increase was partially offset by a decrease of approximately HK$3.7 million in amounts due to related parties and approximately HK$4.8 million in accrued expenses and other payables[54] Net Assets This section reviews the changes in the Group's total net assets, influenced by foreign exchange gains and profit for the period | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total Net Assets | 1,219,000 | 1,201,400 | - Total net assets increased by approximately HK$17.6 million to HK$1,219.0 million, mainly due to exchange gains of approximately HK$35.2 million from the translation of overseas operations and profit for the period of approximately HK$15.2 million[55] - The increase was partially offset by dividends declared of approximately HK$16.4 million, fair value loss on equity investments at fair value through other comprehensive income of approximately HK$7.8 million, and share repurchases of approximately HK$8.9 million[55] Liquidity and Financial Resources This section assesses the Group's liquidity position and financial resources, including cash flows, bank loans, and capital structure Cash Flow This section provides an overview of the Group's cash flows from operating, investing, and financing activities | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net Cash (Used in)/Generated from Operating Activities | (13,361) | 109,286 | | Net Cash Used in Investing Activities | (22,067) | (201,295) | | Net Cash Generated from/(Used in) Financing Activities | 15,092 | (6,368) | | Net Decrease in Cash and Cash Equivalents | (20,336) | (98,377) | | Cash and Cash Equivalents at End of Period | 9,947 | 6,643 | - Net cash outflow from operating activities was HK$13.4 million, net cash outflow from investing activities was HK$22.0 million, and net cash inflow from financing activities was HK$15.1 million[58][59] - Cash and cash equivalents at the end of the period amounted to HK$9.9 million, primarily denominated in HKD (52.8%) and RMB (39.2%)[58] Bank Loans This section details the composition and maturity profile of the Group's bank loans, which are primarily used for working capital Bank Loan Composition (HK$ thousand) | Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Floating-rate RMB bank loans | 68,444 | 74,834 | | Floating-rate AUD bank loans | 131,937 | 90,123 | | Fixed-rate RMB bank loans | 144,542 | 136,864 | | Total | 344,923 | 301,821 | Bank Loan Maturity Profile (HK$ thousand) | Maturity | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within one year | 93,949 | 83,176 | | One to two years | 164,095 | 120,969 | | Two to five years | 59,537 | 66,983 | | Over five years | 27,342 | 30,693 | | Total | 344,923 | 301,821 | - Total bank loans increased to HK$344.9 million, primarily used for working capital, with no unutilized bank facilities[59] - The Board believes the Group has sufficient liquidity and financial resources to meet future needs[61] Capital Structure This section describes the Group's capital structure, comprising equity attributable to owners of the company - The Group's capital structure comprises equity attributable to owners of the company (i.e., issued share capital and reserves)[62] Financial Policy This section outlines the Group's prudent financial management approach, focusing on liquidity and credit risk assessment - The Group adopts a prudent financial management approach, maintaining a sound liquidity position and continuously assessing customer credit to mitigate credit risk[63] Gearing Ratio This section presents the Group's gearing ratio, indicating its leverage and financial risk profile | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 24.3% | 21.6% | - The gearing ratio increased from 21.6% as of December 31, 2024, to 24.3% as of June 30, 2025[64] - Net debt was approximately HK$391.4 million, and equity attributable to owners of the company was approximately HK$1,219.2 million[64] Capital Expenditure This section reports the Group's capital expenditures, primarily for the acquisition of property, plant, and equipment | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Acquisition of property, plant and equipment | 580 | 44 | - Capital expenditure for the acquisition of property, plant, and equipment significantly increased to approximately HK$0.58 million[66] Capital Commitments This section details the Group's outstanding capital commitments, mainly for investments in associates and property development | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Contracted but not provided for | 73,675 | 96,193 | - Total capital commitments amounted to approximately HK$73.7 million, primarily comprising capital injection into an associate and construction cost commitments for properties under development for sale[67] Pledged Assets of the Group This section lists the Group's assets that have been pledged as collateral for borrowings | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Investment properties | 474,654 | 452,969 | | Properties under development for sale | 195,324 | 181,850 | | Restricted bank deposits | 7,035 | 6,550 | | Total | 677,013 | 641,369 | - The total net book value of pledged assets increased to HK$677.0 million, mainly comprising investment properties and properties under development for sale[68] Contingent Liabilities This section confirms the absence of any significant contingent liabilities for the Group as of the reporting date - As of June 30, 2025, the Group had no significant contingent liabilities[69] Overview of the Group's Investment Strategy This section outlines the Group's strategic focus on the health and wellness industry and its diversified investment approach - The Group firmly believes in the immense potential of the big health industry, with a corporate vision of "using technology and professional services to enhance the health and beauty of more people"[70] - The primary investment objective is to seize market opportunities in the big health industry and allocate funds for diversified investments to maximize returns[70][71] Significant Acquisitions and Disposals This section confirms that there were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the period - For the six months ended June 30, 2025, there were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[72] Significant Lending Transactions This section details the Group's lending activities, including its business model, credit risk assessment policies, and key terms of loans receivable Business Model and Credit Risk Assessment Policy This section describes the Group's approach to providing loans and its robust framework for managing associated credit risks - The Group provides short-term interest-bearing loans and long-term interest-bearing revolving financing to customers and related parties to enhance cash returns and investment income[73] - Strict credit risk management and internal control procedures have been established, including due diligence, customer credit risk assessment, evaluation and approval processes, post-loan monitoring, and loan recovery[73][76] - For significant loans or those involving related parties, reporting, announcement, and shareholder approval requirements under Chapters 14 and 14A of the Listing Rules will be fulfilled[74][75] Key Terms of Loans Receivable This section provides a summary of the principal terms and outstanding balances of the Group's loans receivable Outstanding Loans Receivable Details (June 30, 2025) | Customer | Maturity Date | Annual Interest Rate | Carrying Amount (HK$ thousand) | Percentage of Total Loans Receivable | | :--- | :--- | :--- | :--- | :--- | | Guangyu Zhaoneng | On or before December 31, 2026 | One-year Loan Prime Rate plus 3.05% | 219,160 | 43.3% | | Other Borrowers (11 parties) | July 2025 to March 2026 | 3% to 8% | 286,223 | 56.7% | | Total | | | 505,383 | 100% | - The loan receivable from Guangyu Zhaoneng is personally guaranteed by Mr. Zhou Xuzhou[77] Impairment and Write-off of Loans Receivable This section reports on the impairment provisions and write-offs made for the Group's loans receivable during the period - For the six months ended June 30, 2025, a loss allowance of approximately HK$1,104,000 was recognized (2024: nil)[78] - No write-offs were made for loans receivable during the period[78] Material Investments Held This section provides an overview of the Group's investment portfolio, confirming no single investment exceeds 5% of total assets | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total Investment Portfolio | 105,900 | 108,100 | - The Group's investment portfolio is approximately HK$105.9 million, with no single investment's carrying amount exceeding 5% of the Group's total assets[79] Future Plans for Material Investments or Capital Assets This section outlines the Group's future plans for significant investments and capital asset acquisitions, beyond existing commitments - Apart from the disclosed capital commitments, the Board has not approved any other plans for material investments or additions to capital assets[80] - Future acquisitions will be funded through internal resources and other financing activities, including bank borrowings[80] Exchange Rate Fluctuations and Related Hedging Risks This section discusses the Group's exposure to foreign exchange rate fluctuations and its approach to hedging such risks - The Group's revenue, expenses, and monetary assets and liabilities are primarily denominated in RMB, HKD, EUR, CHF, and AUD[81] - No foreign exchange forward contracts were entered into during the period, and there were no unrealized gains or losses[81] Employees and Remuneration Policy This section provides information on the Group's workforce size and its compensation and benefits policies | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Number of Employees | 49 | 46 | - The Group's total number of employees increased to 49[82] - Remuneration policy is consistent with market practices, determined by performance and experience, offering pension and medical plans, and includes a 2019 share option scheme[84] - The Group values recruiting and retaining experienced talent, providing training, and striving to create a harmonious working environment[84] Recent Developments The Group's recent developments focus on strategic expansion in the health and wellness industry, supported by favorable government policies and market growth Macroeconomic and Industry Overview This section provides an overview of the macroeconomic environment and the health industry trends influencing the Group's operations - The Chinese government highly values the development of the health industry, launching the "Healthy China 2030" strategy, with the market size expected to exceed RMB16 trillion by 2030[85] - China has entered a moderately aging society, with a population of 310 million aged 60 and above, giving rise to a "silver economy" market exceeding RMB9 trillion; demand for preventive medicine among younger groups is surging[86] - Despite sluggish global economic growth, the Chinese government's macroeconomic regulation and consumption stimulus policies inject vitality into economic development, benefiting the health and medical industry[87] Health and Medical Related Business Segment - Cell Therapy and Health Management Business This section details the Group's progress and strategic initiatives in the cell therapy and health management sectors, including R&D and clinical trials - The Chinese government continues to issue policies supporting cell therapy development, listing cell culture and cell therapy drugs in the encouraged industry catalog, and accelerating the industrialization of cutting-edge technologies[88] - The global stem cell market size is projected to grow from US$15 billion in 2023 to US$48.83 billion by 2034; the Chinese market is expected to grow from RMB141.8 billion in 2024 to RMB203.5 billion by 2028[89] - The Group strategically invested in Yinguan Bio and established Meiaikang, continuously expanding its presence in the cell therapy field[90] - Yinguan Bio has made progress in IND applications for stem cell new drugs, with 4 cell drug clinical trial applications accepted, of which 2 received implied approval, and obtained multiple patent authorizations[91][93] - Meiaikang completed 132 clinical trials, showing significant efficacy, and is applying for related patent clusters[95] - The Group's Shenzhen and Nanjing clinics provide high-end health management services, operating steadily[95] Health and Medical Related Business Segment - Skin Health Management Business This section highlights the Group's initiatives in the skin health management business, including new brand launches and strategic collaborations - The light medical aesthetics market is rapidly penetrating, and the Group launched the "Jixiaojian" brand, integrating medical aesthetics and efficacy skincare, offering a "60% light medical aesthetics + 40% minimalist efficient skincare" combination[97][98] - "Jixiaojian" collaborates with internationally renowned raw material companies like DSM and Ashland, launching multiple product lines simultaneously across online and offline channels[98] - Strategic cooperation has been established with medical aesthetic equipment leaders such as Lumenis and Peninsula, and R&D collaborations with Shenzhen Xuanjia and Juyuan Bio for supramolecular technology and recombinant collagen skincare products[99] Internationalization Strategy This section outlines the Group's efforts to expand its business globally, with a focus on European and Australian markets - For European operations, a subsidiary was established in Switzerland, launching the CBD high-end health consumer brand AlpReleaf, which has obtained EU and UK certifications, with sales covering 22 European countries[100] - For Australian operations, the wholly-owned Yarrabend boutique townhouse project is steadily progressing in sales and construction[100] - The Group will continue to strengthen its international strategic layout, accelerate international business expansion, enhance brand depth, and boost channel development[101] Outlook The Group is optimistic about China's economic recovery and its robust financial position, focusing on health and wellness, market expansion, and shareholder returns - China's economy is expected to continue its upward trend, providing a favorable environment for the Group's development[102] - The Group possesses net current assets of approximately HK$566.3 million, indicating a solid financial foundation[102] - The Group will continue to focus on the health and medical sector, optimize its skin health management business, expand sales channels, and explore opportunities for stable cash flow or high growth[102] - Overseas business scale is steadily expanding, distribution channels are widening, and brand building is improving[102] - The Board has declared an interim dividend of 0.15 HK cents per share, and will continue to provide capital returns to shareholders through dividends and share repurchases[102] Dividends The Board has declared an interim dividend of 0.15 HK cents per share for the six months ended June 30, 2025, payable on October 31, 2025 - An interim dividend of 0.15 HK cents per share, totaling approximately HK$6,141,000, will be paid on October 31, 2025[103] - The interim dividend is not recognized as a dividend payable for the six months ended June 30, 2025, but will be recognized as an appropriation for the year ending December 31, 2025[103] Closure of Register of Members The company will temporarily suspend share transfer registration from September 26 to October 2, 2025, to determine eligibility for the interim dividend - The register of members will be closed from Friday, September 26, 2025, to Thursday, October 2, 2025[104] - To qualify for the interim dividend, all duly completed transfer forms, together with the relevant share certificates, must be lodged with Tricor Investor Services Limited by 4:30 p.m. on Thursday, September 25, 2025[104] Purchase, Sale or Redemption of the Company's Listed Securities or Sale of Treasury Shares The company repurchased 29,706,000 shares for approximately HK$8,847,264 during the period, holding them as treasury shares with no immediate plans for use or sale - For the six months ended June 30, 2025, the company repurchased 29,706,000 shares for a total consideration of approximately HK$8,847,264[105] - The repurchased shares have not yet been cancelled and are held by the company as treasury shares, with no current intention to use or sell them[105] - The Directors believe that the share repurchases will lead to an increase in net asset value per share and/or earnings per share[105] Corporate Governance The company has adopted and complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules - The company has adopted and complied with the principles and all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules[106] Standard of Securities Transactions by Directors The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance during the period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as its code of conduct for directors' securities transactions[107] - All Directors confirmed compliance with the standards set out in the Model Code for the six months ended June 30, 2025[107] Events After Reporting Period No significant events affecting the Group occurred after the reporting period and up to the date of this announcement - No significant events affecting the Group occurred after the reporting period and up to the date of this announcement[108] Review of Unaudited Interim Financial Information The Audit Committee reviewed the unaudited interim financial information for the six months ended June 30, 2025, discussing accounting principles and internal controls - The Audit Committee has reviewed the unaudited interim financial information for the six months ended June 30, 2025, and discussed accounting principles, internal controls, and financial reporting matters[109] Publication of Interim Results Announcement and Interim Report The interim results announcement has been published on the HKEX and company websites, with the interim report to follow for shareholders - The interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the company's website (www.meilleure.com.cn)[110](index=110&type=chunk) - The interim report will be dispatched to the company's shareholders and published on the aforementioned websites in due course[110] Definitions This section provides definitions for key terms used throughout the announcement, including company names, business segments, and regulatory bodies - Provides definitions for key terms such as "14th Five-Year Plan", "AlpReleaf", "Jixiaojian", "Guangyu Zhaoneng", and "Yinguan Bio"[111][113][114] Acknowledgements The Board of Directors expresses its sincere gratitude to all employees, shareholders, and business partners for their contributions - The Board of Directors extends its sincere gratitude to all employees, shareholders, and business partners of the Group[115]