Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 23,768,000, a decrease of 4.9% compared to HKD 24,984,000 in the same period of 2022[3] - Gross profit for the same period was HKD 14,285,000, down 14.2% from HKD 16,649,000 year-on-year[3] - Operating loss narrowed to HKD 8,914,000 from HKD 20,013,000 in the previous year, indicating improved operational efficiency[3] - The net loss for the period was HKD 10,883,000, significantly reduced from HKD 22,200,000 in the prior year[4] - Basic and diluted loss per share improved to HKD 1.64 from HKD 4.64 year-on-year[3] - The net loss for the six months ended June 30, 2023, is HKD 6,570,000, compared to a loss of HKD 11,632,000 for the same period in 2022[14] - The company reported a total comprehensive income of HKD (6,705,000) for the six months ended June 30, 2023[12] - The reported segment loss for the six months was HKD 10,883,000, an improvement from a loss of HKD 22,200,000 in the previous year[27] - The company reported a net loss attributable to equity holders of approximately HKD 6,600,000 for the period, a significant decrease from a net loss of approximately HKD 18,500,000 in the same period last year, primarily due to a turnaround from unrealized losses to unrealized gains in securities[67] Assets and Liabilities - Total assets as of June 30, 2023, were HKD 275,665,000, a decrease from HKD 289,312,000 at the end of 2022[6] - Cash and cash equivalents decreased to HKD 6,166,000 from HKD 26,496,000 at the end of 2022, reflecting liquidity challenges[6] - Non-current assets decreased to HKD 125,795,000 from HKD 143,718,000, primarily due to depreciation and amortization[6] - The company’s total liabilities as of June 30, 2023, are not explicitly stated but are implied to have increased due to the reported losses and cash outflows[12] - Total reported segment assets as of June 30, 2023, were HKD 319,374,000, a decrease from HKD 333,529,000 at the end of 2022[29] - Total reported segment liabilities decreased to HKD 86,688,000 from HKD 91,360,000 at the end of 2022[29] - The company’s accounts payable decreased to HKD 39,535,000 as of June 30, 2023, from HKD 40,005,000 as of December 31, 2022, showing a slight reduction in liabilities[58] Cash Flow and Financing - The net cash used in operating activities for the six months ended June 30, 2023, is HKD 16,127,000, compared to HKD 11,632,000 in the previous year[14] - The company’s cash flow from operating activities included interest received of HKD 2,389,000, down from HKD 6,883,000 in the previous year[14] - The financing activities resulted in a cash outflow of HKD 4,203,000 for lease liabilities during the six months ended June 30, 2023[16] - As of June 30, 2023, the company had no bank borrowings and reported a net cash position of HKD 6,200,000, resulting in a debt-to-asset ratio of zero[89] Revenue Segments - For the six months ended June 30, 2023, the total reported segment revenue was HKD 23,782,000, a decrease of 4.9% compared to HKD 24,994,000 in 2022[27] - Medical service revenue for the same period was HKD 15,574,000, down 17.8% from HKD 18,785,000 in 2022[30] - Revenue from Shanghai Hospital for the period was approximately HKD 14,600,000, compared to HKD 12,900,000 in the same period last year, while the net loss was approximately HKD 9,300,000, slightly improved from HKD 9,700,000[68] Cost Management - The company is focusing on cost control, with administrative expenses reduced to HKD 23,103,000 from HKD 29,400,000 year-on-year[3] - The total employee cost for the six months ended June 30, 2023, was HKD 11,300,000, with a total of 90 employees[92] Credit and Risk Management - The company has made significant provisions for expected credit losses, with a total of HKD 67,211,000 as of June 30, 2023, reflecting a cautious approach to credit risk management[51] - The company has a policy of assessing the recoverability of loans on an individual basis, which includes evaluating the credit quality of borrowers[51][52] - The company will adopt more cautious credit assessments and procedures in its lending and related businesses due to the ongoing global economic challenges[74] Shareholder Information - As of June 30, 2023, major shareholders hold significant stakes in the company, with Dong Jufeng and Jia Tianjiang each owning approximately 66.69% of the issued share capital, totaling 266,069,294 shares[96] - Tianyuan Manganese Industry Co., Ltd. holds a beneficial interest of 62.54%, with 249,539,294 shares, and an additional 4.14% represented by 16,530,000 shares under a mortgage interest[96] - The company confirms that there are no other individuals, apart from the directors and senior management, holding 5% or more of the shares as of June 30, 2023[98] Corporate Governance - The board of directors guarantees the authenticity, accuracy, and completeness of the mid-year financial report for 2023, ensuring no misleading statements or significant omissions[98] - The audit committee, composed of three independent non-executive directors, reviewed the interim results and financial information without objection[76] - The company is actively seeking suitable candidates to fulfill the role of executive director to comply with corporate governance codes[79] - The company has adopted the "Standard Code for Securities Transactions by Directors" and confirmed compliance throughout the period[84]
天元医疗(00557) - 2023 - 中期财报