Financial Performance - The Group recorded total revenue of HK$33,054,000 for the six months ended 30 June 2022, a significant increase from HK$16,112,000 in the same period of 2021, representing a growth of approximately 105%[43]. - The Group achieved a profit of HK$6,437,000 for the period, compared to a loss of HK$20,851,000 in the prior year, marking a turnaround in financial performance[43]. - The basic and diluted earnings per share improved to HK$0.04 cents, compared to a loss per share of HK$0.14 cents in the previous year[44]. - The Group's consolidated net assets decreased to HK$448,434,000 as of 30 June 2022, down from HK$470,718,000 at the end of 2021[44]. - The money lending and financial advisory business generated segment revenue of approximately HK$15,101,000, up from HK$8,941,000 in the previous year, with segment profit increasing to HK$12,684,000 from HK$244,000[56]. - The Group reported a net fair value loss of approximately HK$13,414,000 on listed securities investments during the review period, compared to a net fair value gain of HK$23,853,000 in the same period last year[72]. Business Development and Strategy - The management discussion highlighted a focus on expanding product offerings and enhancing user engagement metrics[16]. - The company is actively pursuing new product development initiatives aimed at improving market competitiveness[16]. - Future outlook indicates a commitment to market expansion and potential mergers and acquisitions to drive growth[16]. - The company is exploring strategic partnerships to enhance its technological capabilities[16]. - The Group is actively identifying acquisition opportunities to enhance its industry chain in longevity science[108]. - The Group plans to establish longevity medical testing centers in 18 first and second-tier cities in China over the next three years through mergers and acquisitions and strategic cooperation[147][148]. Risk Management and Governance - The company has established a risk management committee to better navigate market uncertainties[14]. - The board of directors underwent changes, with new appointments aimed at strengthening governance and oversight[14]. - The Group's operations are primarily exposed to risks including exchange rate risk, policy risk, credit risk, and liquidity risk[163]. - The slowdown of the PRC's economic growth and tightening financial regulations may adversely affect the Group's money lending and financial advisory businesses[164]. Longevity Science Business - The longevity science business contributed HK$17,953,000 in revenue and HK$6,989,000 in segment profit, which helped cushion the overall performance of the Group[43]. - The longevity science business has established two state-of-the-art testing centers in Hong Kong, offering advanced medical tests and genetic assessments[26]. - The Company aims to expand its longevity memberships and services targeting high-net-worth individuals in PRC, Hong Kong, and Southeast Asia[31]. - The Group's two patents for early cancer screening have been approved, significantly improving the effectiveness and accuracy of cancer prevention technologies[116]. - The Group is developing the "Internet + Healthcare" longevity system platform, Zhong Ji Longevity Cloud, leveraging existing customer bases and sales channels[131]. Research and Development - The Group plans to enhance its R&D capabilities by recruiting a seasoned team, including a Nobel laureate, to support its longevity science initiatives[101]. - The R&D focus will include the development of cell and gene therapy, along with providing cell testing, banking, and therapy services[158][159]. - The scientific research team has advanced the NMN product "ZJ1" to its seventh generation, introducing longevity functional beverages to improve health and longevity[131]. - The Group aims to build a world-class R&D team and facilities to accelerate innovation in longevity biological products[108]. Market Presence and Sales - The Group has formed a sales and distribution network with over 2,000 pharmacies in PRC to sell its longevity products since June 2022[31]. - The sales of longevity biological products contributed approximately HK$14,680,000 to the revenue of the longevity science segment for the six months ended June 30, 2022[99]. - The Group anticipates achieving aggregate sales of approximately RMB 109 million across over 2,000 pharmacy outlets from now until December 2024 through China GuoYao's sales and distribution contracts[158][159]. - The Group has launched an overseas flagship store on Tmall Global for the sale of ZJ1 series nutritional supplements, which includes ZJ1 NMN multi-series longevity supplements and ZJ1 VC tablets[137]. Shareholding and Capital Structure - The total number of issued ordinary shares as of June 30, 2022, remained at 3,870,102,650, unchanged from December 31, 2021[166]. - As of June 30, 2022, Mr. Yan Li held 498,855,175 shares and a 90.76% shareholding interest in Zhong Ji 1 International Medical Group, which holds convertible notes worth HK$1,840,000,000, convertible into 9,200,000,000 shares of the Company[192]. - Mr. Li Xiaoshuang held 38,680,000 share options, entitling him to subscribe for an equivalent number of shares[192]. - The Group did not pledge any assets to banks or other financial institutions as of June 30, 2022[171].
中基长寿科学(00767) - 2022 - 中期财报