Financial Performance - The company recorded revenue of HKD 1.7 million for the year ended December 31, 2021, unchanged from 2020, with a gross profit of HKD 0.8 million and a gross margin of 46.5% compared to 54.3% in 2020[6]. - The consolidated loss attributable to the company was HKD 26.3 million, a decrease from HKD 50.8 million in 2020, while the total consolidated loss was HKD 24.7 million, down from HKD 52.5 million in 2020[6]. - Total revenue for the year ended December 31, 2021, was HKD 1,699,000, compared to HKD 9,617,000 in 2020, representing a decrease of approximately 82.3%[116]. - Gross profit for 2021 was HKD 790,000, down from HKD 5,225,000 in 2020, indicating a decline of about 84.9%[116]. - The company reported a loss before tax of HKD 24,717,000 for 2021, an improvement from a loss of HKD 52,470,000 in 2020, reflecting a reduction of approximately 53%[116]. - The net loss attributable to owners of the company for 2021 was HKD 26,275,000, compared to HKD 50,846,000 in 2020, showing a decrease of about 48.7%[116]. Assets and Liabilities - As of December 31, 2021, the total assets and total liabilities of the group were HKD 19.1 million and HKD 324.9 million, respectively, with cash and bank balances of HKD 3.7 million[7]. - The group had a total borrowing of HKD 272.0 million, which included HKD 217.1 million in loans and HKD 54.9 million in bonds payable[7]. - As of December 31, 2021, the group's current liabilities and total liabilities were HKD 255.3 million and HKD 324.9 million, respectively, including borrowings of HKD 140.4 million due within one year[110]. - The group's cash and cash equivalents balance was HKD 3.7 million, indicating insufficient liquidity to repay borrowings immediately[110]. - The company's total equity attributable to owners decreased from HKD (291,075,000) in 2020 to HKD (317,350,000) in 2021, indicating a worsening of approximately 9%[118]. Cash Flow - The net cash outflow from operating activities was HKD 6.6 million, while the net cash inflow from financing activities was HKD 9.9 million, resulting in a net cash inflow of HKD 2.6 million for the year[7]. - Cash flow from operating activities showed a net cash outflow of HKD 6,618,000, which is a 33% improvement compared to HKD 9,922,000 in the previous year[124]. - The net cash from financing activities increased to HKD 9,913,000, up from HKD 7,335,000 in the previous year, indicating a 35% increase[124]. - The total cash and cash equivalents at the end of the year rose to HKD 3,671,000, compared to HKD 1,073,000 at the beginning of the year, marking a significant increase[124]. Business Operations - The company is actively seeking business opportunities to enhance long-term shareholder value despite challenges from the COVID-19 pandemic and other geopolitical factors[20]. - The company plans to continue its medical equipment and product distribution business, which showed good progress in 2022, and expects further growth in 2023 and beyond[20]. - The group is continuously developing its medical and health lifestyle business to improve its operating cash flow[140]. Governance and Compliance - The board of directors includes a mix of executive and independent non-executive members, ensuring independence as per the listing rules[45]. - The company complied with all code provisions of the corporate governance code during the year ended December 31, 2021, except for the non-executive directors having no fixed term[68]. - The audit committee reviewed the accounting principles adopted by the group and there were no disagreements with the auditors regarding the accounting policies[62]. - The board has adopted a diversity policy for its members, considering various factors such as cultural background and professional experience[71]. - The company has established four committees under the board to oversee different aspects of its operations[76]. Risk Management - The company has implemented risk management policies to address various risks that may impact its operations and financial condition[13]. - The board of directors has established a risk management committee to monitor the effectiveness of risk management and internal controls within the group[80]. - The company is committed to maintaining a robust risk management system to ensure effective management of operational and financial reporting risks[85]. Environmental and Social Responsibility - The group’s operations do not produce air pollutants or regulated emissions, indicating a low environmental impact[90]. - The group does not generate hazardous waste and has implemented policies to minimize waste and improve resource efficiency[91]. - The company is committed to energy efficiency and resource conservation, promoting practices such as recycling and reducing unnecessary business travel[92]. - The company adheres to employment laws and promotes a fair working environment, with zero tolerance for child labor and forced labor[96]. - Employee health and safety are prioritized, with measures taken to protect staff during the COVID-19 pandemic[97]. Financial Reporting and Accounting - The financial statements are prepared based on historical cost, except for certain financial instruments measured at fair value[134]. - The company has adopted the revised Hong Kong Accounting Standards, which are not expected to have a significant impact on the financial statements[131]. - The financial statements are presented in Hong Kong dollars (HKD), which is also the functional currency of the company[138]. - The company recognizes impairment losses on financial instruments in profit or loss, adjusting the carrying amount through loss provisions[158]. - Revenue is recognized when control of goods or services is transferred to customers, reflecting the amount the group expects to receive[171].
京玖康疗(00648) - 2023 - 年度财报