Dividend and Financial Performance - The Company did not declare an interim dividend for the six months ended 30 June 2023, consistent with the previous year[10]. - For the six months ended June 30, 2023, the Group recorded total revenue of HK$29,911,000, a decrease from HK$33,054,000 in the same period of 2022[36]. - The Group reported a profit for the period of HK$1,938,000, down from HK$6,437,000 in the prior year[36]. - The basic and diluted earnings per share were HK$0.01, compared to HK$0.04 in the same period of 2022[37]. - Profit for the period was HK$1,938,000, down 69.9% from HK$6,437,000 in the prior year[39]. - The Company reported revenue of HK$29,911,000, a decrease of approximately 9.5% compared to HK$33,054,000 for the same period in 2022[169]. - Gross profit for the same period was HK$26,487,000, down from HK$29,108,000, reflecting a decline of about 9.0%[169]. - Profit before tax for the period was HK$5,312,000, a decrease of approximately 13.7% from HK$6,152,000 in the prior year[169]. - The profit for the period attributable to owners of the Company was HK$1,782,000, down from HK$6,273,000, representing a decline of approximately 71.6%[169]. - The Company incurred selling and distribution expenses of HK$11,959,000, significantly higher than HK$1,258,000 in the previous year, indicating an increase of approximately 848.5%[169]. - Administrative expenses rose to HK$26,937,000 from HK$21,467,000, marking an increase of about 25.4%[169]. - Other comprehensive loss for the period totaled HK$80,621,000, compared to HK$28,721,000 in the previous year, reflecting a significant increase[171]. - Total comprehensive loss for the period attributable to owners of the Company was HK$77,226,000, up from HK$21,825,000 year-over-year[171]. Business Operations and Revenue Sources - The existing Money Lending & Financial Advisory Business has shown steady recovery growth despite challenges from COVID-19 restrictions in major cities[16]. - The Company operates its money lending business through two models: the "Strategic Partners Model" and the "Corporate and Personal Borrowers Model"[12]. - The Company’s strategic partners include China Foreign Economy and Trade Trust Co. Ltd, Shenzhen Fanhua Joint Investment Group Co. Ltd, and Chongqing Haier[12]. - The Company’s loan assets are primarily in the form of residential loans managed through strategic partners, with a focus on home mortgage products[17]. - The Company’s financial advisory business continues to adapt to the evolving market conditions post-P2P loan transition[16]. - The Group's principal activities include longevity science, money lending, financial advisory, securities investments, and property investment[187]. - The longevity science business is expected to become a key revenue growth driver for the Group, supported by a network of 2,000 pharmacy outlets across various regions in China[53]. - The Group's financial performance reflects a significant shift in revenue sources, particularly in diagnostic services[199]. Longevity Science Business - The Company is focused on expanding its longevity science business alongside its financial services[11]. - The Longevity Science Business contributed revenue of HK$11,868,000 but incurred a segment loss of HK$13,283,000[36]. - The longevity science business generated revenue of approximately HK$11,868,000, a decline of 33.9% from HK$17,953,000 in the same period last year, with a segmental loss of approximately HK$13,283,000 compared to a profit of HK$6,989,000 in 2022[42][44]. - Revenue from diagnostic consultation and medical testing was approximately HK$9,517,000, up 190.5% from HK$3,273,000 in the prior year[42][44]. - Sales of longevity biological products fell to approximately HK$2,351,000, a decrease of 84.0% from HK$14,680,000 in the same period last year due to customs clearance delays[43][45]. - The Group's strategy includes diversifying into the longevity medical health business, offering various advanced medical tests and treatments[27]. - The Group has strengthened its R&D capabilities by appointing Nobel laureate Randy Wayne Schekman as Honorary Chairman and Chief Scientist[47][49]. - The Group is developing its flagship NMN product "ZJ1" and other longevity biological products in California, with the R&D progress of "ZJ1" reaching the seventh generation[48][50]. - The Group plans to establish the "Internet + Healthcare" longevity system platform, Zhong Ji Longevity Cloud, leveraging its existing customer base and sales channels[48][50]. Market Environment and Challenges - The Company faces uncertainties due to PRC government policies offering mortgage repayment relief, impacting recovery actions[18]. - The Company’s operations are affected by the stringent market environment, particularly in property transactions in both PRC and Hong Kong[16]. - The PRC property market faced a slump, impacting the performance of home loans and secured loans in the Money Lending and Financial Advisory Business[34]. - The Group engaged a PRC law firm to expedite recovery actions on overdue loans, with progress reported by the end of July 2023[23]. Assets and Financial Position - The Group's consolidated net assets as of June 30, 2023, were HK$419,251,000, slightly down from HK$420,849,000 at the end of 2022[37]. - The Group's net asset value as of June 30, 2023, was HK$419,251,000, slightly down from HK$420,849,000 as of December 31, 2022[40]. - As of June 30, 2023, the Group recorded net current assets of approximately HK$231,394,000, a decrease from HK$246,217,000 as of December 31, 2022[85]. - The Group's cash and bank balances were approximately HK$58,733,000 as of June 30, 2023, down from HK$60,069,000 as of December 31, 2022[85]. - The total number of issued ordinary shares increased to 4,554,412,915 as of June 30, 2023, compared to 4,257,112,915 as of December 31, 2022[86]. - The gearing ratio of the Group was approximately 2.1% as of June 30, 2023, down from 2.4% as of December 31, 2022[105]. - The Group did not have any capital commitment as of June 30, 2023, consistent with the position as of December 31, 2022[107]. - The Group has not implemented any foreign currency hedging policy but is continuously monitoring foreign exchange exposure due to fluctuations in Renminbi[106]. - The Group had no material contingent liability as of June 30, 2023, the same as December 31, 2022[108]. Shareholding and Corporate Governance - The company continues to monitor and comply with the relevant regulations regarding shareholdings and interests[119]. - The total number of shares held by Mr. Yan Li, including convertible notes, represents approximately 212.79% of the total issued shares as of June 30, 2023[117][118]. - The company had no disclosed interests or short positions from directors or chief executives as of June 30, 2023[119][122]. - The company recorded no significant changes in substantial shareholders' interests as of June 30, 2023[120][123]. - The Company has complied with the Corporate Governance Code during the six months ended June 30, 2023[156]. Legal Matters - An unlawful leasehold interest transfer was discovered, involving Keen State Global Saipan, which was executed without the knowledge or authority of the Group[76]. - Internal inquiries confirmed that no staff or directors of the Group authorized the unlawful lease assignment, which is being challenged legally[79]. - The Group has authorized legal actions to invalidate the forged lease assignment and recover possession of the leasehold interest[81].
中基长寿科学(00767) - 2023 - 中期财报