Financial Performance - For the year ended December 31, 2022, the Group's turnover decreased by approximately 16% to approximately HK$142 million, compared to approximately HK$170 million for the year ended December 31, 2021[13]. - The gross profit margin for the Reporting Year was approximately 37%, down from approximately 54% in the Corresponding Year[14]. - The overall loss attributable to owners of the Company was approximately HK$54 million, an improvement from HK$103 million in the Corresponding Year[14]. - Revenue from the Chinese health product segment increased from approximately HK$114 million in FY21 to approximately HK$128 million in the Reporting Year[19]. - The money lending segment's revenue decreased from approximately HK$22 million in FY21 to approximately HK$15 million in the Reporting Year[19]. - The Group recorded net realized and unrealized losses on investment in financial instruments of approximately HK$16 million for FY22, compared to gains of approximately HK$18 million for FY21[20]. - Revenue from the investment in financial instruments segment decreased from a gain of approximately HK$34 million in FY21 to a loss of approximately HK$1 million in FY22[73]. - The Group recorded a revenue decrease of approximately 16%, from approximately HK$170 million in FY21 to approximately HK$142 million in FY22[73]. Segment Performance - The increase in revenue from Chinese health products was attributed to the Consumption Vouchers Scheme and the relaxation of social distancing measures by the Hong Kong Government[23]. - As of December 31, 2022, the Chinese health products segment recorded a segment profit of approximately HK$2 million, compared to a loss of HK$9 million in FY21[22]. - The Chinese herbal health products segment generated revenue of approximately HK$128 million in the reporting year, an increase from HK$114 million in FY21, with a segment profit of approximately HK$2 million compared to a loss of HK$9 million in FY21[25]. - The increase in revenue from herbal health products was primarily driven by the Hong Kong government's consumption voucher scheme and the relaxation of certain social distancing measures, which stimulated consumer spending[25]. - The money lending business generated interest income of approximately HK$15 million, down from HK$22 million in FY21, with a segment loss before taxation of approximately HK$30 million, significantly reduced from a loss of HK$98 million in FY21[28]. - The decrease in segment loss in the money lending business was mainly due to a reduction of approximately HK$78 million in the allowance for expected credit loss (ECL) during FY22[28]. Financial Position - As of December 31, 2022, the Group's loan receivables amounted to approximately HK$134 million, a slight decrease from approximately HK$139 million as of December 31, 2021[35]. - The total allowance for ECL on loan receivables was approximately HK$187 million, an increase of approximately HK$25 million compared to FY21[34]. - The Group's total equity at the end of 2022 was HK$57,313,000, a decrease from HK$59,304,000 at the end of 2021, representing a decline of approximately 3.3%[42]. - The Group's cash and bank balances decreased to approximately HK$17 million as of December 31, 2022, from HK$40 million as of December 31, 2021[66]. - Total borrowings increased to approximately HK$31 million as of December 31, 2022, from HK$12 million as of December 31, 2021[66]. - The Group's shareholders' equity decreased from approximately HK$193 million as of December 31, 2021, to approximately HK$139 million as of December 31, 2022, primarily due to operating losses[66]. - The Group's total assets amounted to HK$288 million as of December 31, 2022, financed by shareholders' funds, payables, and borrowings[110][113]. Governance and Risk Management - The Company has complied with all code provisions as set out in the Corporate Governance Code throughout the year ended December 31, 2022[142]. - The Group regularly monitors liquidity and financial position to mitigate liquidity risk[127]. - The Group performs comprehensive due diligence on potential acquisitions to manage strategic risk[126]. - The Company aims to maintain appropriate liquidity to cover financial commitments[127]. - The Group seeks legal advice as appropriate to manage legal and regulatory risks[130]. - The Board has adopted a corporate governance policy to ensure high standards of governance, aligning with the interests of stakeholders[144]. Board Composition and Activities - The Board comprises six Executive Directors and three Independent Non-executive Directors, ensuring a diverse range of skills and expertise[163]. - Fourteen Board meetings were held during the year ended December 31, 2022, ensuring regular oversight and governance[170]. - All Directors are subject to retirement by rotation every three years, ensuring accountability and fresh perspectives[171]. - All independent non-executive directors confirmed their independence in accordance with the Listing Rules for the year ended December 31, 2022[184]. - Continuous professional development activities were participated in by all directors during the reporting year, ensuring their skills remain relevant[193]. - The Board believes that a diversified Board brings constructive challenge and fresh perspectives to discussions[200].
中国智能健康(00348) - 2022 - 年度财报