Revenue and Financial Performance - For the year ended 31 March 2023, the Group recorded a revenue of approximately HK$223.85 million, representing an increase of approximately 141.03% compared to HK$92.87 million for the year ended 31 March 2022[26]. - The Group's gross profit for the year ended 31 March 2023 was approximately HK$12.05 million, with a gross profit margin of 5.38%, down from 14.81% in the previous year[27]. - The healthcare products and services segment recorded a turnover of HK$223.66 million, with a segment loss of HK$16.12 million, an increase of approximately HK$13.77 million compared to the previous year[41]. - The loss for the year ended 31 March 2023 was approximately HK$31.75 million, a decrease of approximately HK$5.57 million compared to the loss of HK$37.32 million in the previous year[31]. - Basic and diluted loss per share for the year ended 31 March 2023 was approximately HK1.71 cents, down from HK2.68 cents in the previous year, representing a decrease in loss of approximately HK0.97 cents[32]. Business Operations and Expansion - The Group continues to deepen its medical testing business while expanding sales of medical supplies and internet medical data services to create more value for shareholders[10]. - The Group's genetic testing service is expanding both in Hong Kong and overseas, driven by increased demand for hygiene and health products due to COVID-19[20]. - The Group plans to continue expanding its genetic testing services in Hong Kong and overseas, driven by increased demand for hygiene and health products due to COVID-19[40]. - The Group is actively developing domestic healthcare equipment service business and integrating health data analysis software with healthcare equipment to provide new services[39]. - The Group's health business, including genetic testing and urine testing, creates synergies and expands the sales network through cross-selling products to various clients such as local governments and hospitals[158]. Money Lending Business - The Group is also engaged in a money lending business, diversifying its operations[21]. - Interest income from the money lending business decreased by approximately 75% to HK$0.19 million for the year ended 31 March 2023, due to the downsizing of the loan portfolio to zero balance[48]. - The Group's lending business reported interest income of HK$190,000 for the year ended March 31, 2023, a decrease of approximately 75% compared to HK$760,000 for the previous year due to a reduction in the total amount of loans issued[51]. - The Group focuses on short-term loans, with a maximum loan period of 12 months, primarily targeting corporate customers[51]. - The Group has a credit assessment process in place to evaluate potential borrowers' credit quality and define credit limits, which includes assessing financial backgrounds and collateral values[54]. Investments and Impairments - The Group acquired a 30% equity interest in Guangzhou Manrui Biotech Company Limited for approximately HK$65,129,000, which specializes in genetic testing technologies[63]. - Manrui Biotech's genetic testing technologies have not generated any income since the Group's acquisition, leading to a full impairment of the investment during the year ended March 31, 2022[63][64]. - Full impairment was made on the investment in Manrui Biotech, with no income generated since acquisition, affecting comparative profit and loss figures[105][107]. - The Group received full refunds of RMB30,000,000 (approximately HK$34,270,000) and RMB25,000,000 (approximately HK$28,558,000) from two associates that were de-registered due to COVID-19 related business plan failures[111]. Prepayments and Refunds - The Group recorded prepayments for healthcare supplies of approximately HK$89,620,000 as of 31 March 2022, including RMB22,685,000 (approximately HK$27,971,000) and RMB50,000,000 (approximately HK$61,649,000)[82]. - The Group has not received disinfectant materials from suppliers A and B, and a cancellation agreement was signed with supplier A in April 2023, resulting in a request for a full refund of approximately HK$28,889,000[91][95]. - The Group received a refund of approximately HK$23,333,000 from supplier A, with an outstanding balance of approximately HK$5,556,000 impaired[91][95]. - The total prepayments of approximately HK$106,535,000 and their recoverability of approximately HK$77,646,000 as of 31 March 2023 could not be verified due to insufficient audit evidence[94][96]. Audit and Financial Reporting - The Group's financial statements for the year ended March 31, 2023, were audited and found to give a true and fair view of its financial position, despite a qualified opinion regarding the valuation of its investment in Manrui Biotech[58][59]. - The qualification related to the opening balance of the Group's financial position as of March 31, 2023, was resolved with no qualifications for the two associates in the consolidated statement[113]. - The Audit Committee has concurred with the treatment of the investments in the two de-registered associates and the prepayment for consultant services[114]. - The Group's consolidated statement of profit or loss for the year ended March 31, 2023, shows no qualifications regarding prepayments for consultant services[116]. Future Outlook and Strategy - The Company expects to complete the disposal of Manrui Biotech on or before September 30, 2023, which would resolve audit issues for the year ending March 31, 2024[110]. - The Company plans to expand its sales market to Hong Kong and Southeast Asia, in addition to existing PRC distribution channels[135]. - The management believes that the health products and services business has a broad outlook due to increased health awareness post-COVID-19, which could provide overall returns to the company and its shareholders[158]. - The Group's management emphasizes prudent financial management to minimize risks[186][191]. Employee and Financial Management - The number of full-time employees decreased to 13 as of March 31, 2023, from 15 in 2022, due to a shift in marketing strategy[189][193]. - Employee remuneration is based on performance, experience, and market standards, with benefits including medical insurance and retirement schemes[189][193]. - The Group relies on internally generated funds and proceeds from fundraising activities for financing operations and expansion[186][191].
莲和医疗(00928) - 2023 - 年度财报