今海医疗科技(02225) - 2023 - 中期业绩

Financial Highlights Consolidated Statement of Profit or Loss and Other Comprehensive Income In H1 2023, the Group's total revenue decreased by 18.5% to SGD 12.0 million, with profit attributable to owners declining by 33.0% to SGD 0.939 million due to reduced China medical product sales and increased expenses | Metric | Six Months Ended June 30, 2023 (SGD) | Six Months Ended June 30, 2022 (SGD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 11,982,837 | 14,707,178 | -18.5% | | Gross Profit | 5,048,441 | 5,028,537 | +0.4% | | Profit Before Tax | 590,165 | 1,632,634 | -63.8% | | Profit for the Period | 584,393 | 1,332,972 | -56.2% | | Profit Attributable to Owners of the Company | 938,685 | 1,402,136 | -33.0% | - Basic and diluted earnings per share decreased from 0.11 Singapore cents in the prior period to 0.08 Singapore cents[4][21] Consolidated Statement of Financial Position As of June 30, 2023, the Group's total assets increased to SGD 46.99 million from year-end 2022, with net assets rising to SGD 25.44 million, maintaining a robust financial position despite significant increases in trade receivables and payables | Metric | June 30, 2023 (SGD) | December 31, 2022 (SGD) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 7,654,359 | 6,970,288 | +9.8% | | Current Assets | 39,340,316 | 33,301,539 | +18.1% | | Total Assets | 46,994,675 | 40,271,827 | +16.7% | | Current Liabilities | 20,250,653 | 13,998,576 | +44.7% | | Non-current Liabilities | 1,301,370 | 1,681,045 | -22.6% | | Total Liabilities | 21,552,023 | 15,679,621 | +37.4% | | Net Assets | 25,442,652 | 24,592,206 | +3.5% | Dividends The Board resolved not to declare an interim dividend for the six months ended June 30, 2023, consistent with the prior year's policy - The Board decided not to declare an interim dividend for the first half of 2023 (H1 2022: nil)[20][33] Management Discussion and Analysis Business Review and Outlook The Group's core business in Singapore includes labor secondment and dormitory services, with future plans to diversify into Asia Pacific, offer value-added labor services, and explore capital market financing, despite H1 2023 revenue decline due to China medical business - The Group's principal activities involve providing labor secondment and related services to construction contractors in Singapore, supplemented by dormitory services, IT services, construction-related services, and minimally invasive surgical solution products in China[6][25] - Looking ahead, the Group anticipates continued challenges in Singapore's construction sector and plans to expand its business into the Asia Pacific region, including China, while providing value-added services such as skills training for the workforce[25] - The Group will continue to enhance its medical device business development capabilities and distribution network, while exploring various financing options in Hong Kong or other capital markets to support business growth[25] Financial Review In H1 2023, the Group's total revenue decreased by 18.5% due to a sharp decline in China medical product sales; however, gross margin significantly improved from 34.2% to 42.1% driven by the recovery of high-margin dormitory services, though increased administrative expenses and fair value losses led to a substantial net profit decline Revenue Analysis Total revenue in H1 2023 decreased by 18.5% to SGD 11.98 million, as growth in labor secondment (11.2%) and dormitory services (27.7%) was offset by a 91.3% drop in minimally invasive surgical product revenue, with Singapore revenue increasing while China's declined significantly | Business Segment | H1 2023 (SGD) | H1 2022 (SGD) | Change (SGD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Labor Secondment and Related Services | 7,540,287 | 6,782,648 | +757,639 | +11.2% | | Dormitory Services | 3,649,302 | 2,857,954 | +791,348 | +27.7% | | Construction-related Services | 170,868 | 201,134 | -30,266 | -15.1% | | IT Services | 226,380 | 214,350 | +12,030 | +5.6% | | Minimally Invasive Surgical Solution Products | 396,000 | 4,651,092 | -4,255,092 | -91.5% | | Total | 11,982,837 | 14,707,178 | -2,724,341 | -18.5% | - The increase in labor secondment service revenue was due to an accelerated resumption of work amid persistent labor shortages; dormitory service revenue growth benefited from higher occupancy rates[27][28] | Region | H1 2023 (SGD) | H1 2022 (SGD) | Change (%) | | :--- | :--- | :--- | :--- | | Singapore | 11,586,837 | 10,056,086 | +15.2% | | China | 396,000 | 4,651,092 | -91.5% | | Total | 11,982,837 | 14,707,178 | -18.5% | Profitability Analysis Despite revenue decline, gross profit slightly increased from SGD 5.0 million to SGD 5.1 million, with gross margin improving from 34.2% to 42.1% due to the recovery of higher-margin dormitory services; however, profit attributable to owners decreased from SGD 1.4 million to SGD 0.9 million due to increased administrative expenses and other losses - Gross margin increased from 34.2% in the prior period to 42.1%, primarily due to the recovery of the dormitory services business[29] - Profit attributable to owners of the Company decreased from SGD 1.4 million in the prior period to approximately SGD 0.9 million, mainly attributed to the slow business recovery post-COVID-19 pandemic[32] Expense Analysis Administrative expenses increased by approximately 20% year-on-year to SGD 4.8 million, primarily due to the slow recovery of construction projects post-pandemic; net other gains and losses recorded a SGD 0.308 million loss, compared to a SGD 0.219 million gain in the prior period, mainly from fair value changes of financial assets at fair value through profit or loss - Administrative expenses increased from SGD 4.0 million in the prior period to SGD 4.8 million, primarily due to the slow recovery of construction projects post-pandemic[30] - Net other losses of approximately SGD 0.3 million were recorded (prior period: SGD 0.2 million gain), mainly due to fair value losses on financial assets at fair value through profit or loss[31] Liquidity and Capital Resources The Group maintains a robust financial position, primarily relying on internal funds and IPO proceeds; as of June 30, 2023, cash and cash equivalents were approximately SGD 12.9 million, with the gearing ratio increasing from 18.1% to 21.0% due to increased lease liabilities from renewals, and approximately HKD 51.5 million of IPO proceeds remaining unutilized with extended timelines for some projects - As of June 30, 2023, the Group's cash and cash equivalents were approximately SGD 12.9 million[44] - The gearing ratio (total borrowings/total equity) increased from 18.1% at the end of 2022 to 21.0%, primarily due to increased lease liabilities from renewals during the period[45] | Proposed Use of Net Proceeds from Listing | Unutilized Amount (million HKD) | Expected Timeline for Full Utilization of Unutilized Net Proceeds | | :--- | :--- | :--- | | Acquisition of an additional foreign worker dormitory | 46.6 | Before end of June 2024 | | Acquisition of 10 additional trucks | 1.9 | Before end of June 2024 | | Injection of registered capital into Jinhai Medical | 3.0 | Before end of October 2024 | | Total Unutilized | 51.5 | | Other Disclosures Risk Management The Group faces key market risks including interest rate, foreign exchange, credit, and share price risks, managed through close market monitoring and credit control policies, though no interest rate hedging is currently employed; the appreciation of HKD, in which most share offer proceeds are denominated, resulted in approximately SGD 0.1 million in unrealized exchange gains - The Group's primary risks include: interest rate risk (from bank balances and fixed-rate finance leases), foreign exchange risk (from USD, RMB, and HKD assets), credit risk (from trade receivables), and share price risk (from equity instrument investments)[51][52][53][55] - Most of the Group's retained listing proceeds are denominated in HKD, resulting in an unrealized exchange gain of approximately SGD 0.1 million in H1 2023 due to the appreciation of HKD against SGD[46] Employees and Remuneration Policy As of June 30, 2023, the Group had approximately 630 employees (including foreign workers), an increase from 520 at year-end 2022; total staff costs for H1 2023 were approximately SGD 6.3 million, up from SGD 4.8 million in the prior period - As of June 30, 2023, the Group's total number of employees was approximately 630, an increase from 520 as of December 31, 2022[50] - Total worker and staff costs for H1 2023 were approximately SGD 6.3 million, a 31.3% increase from SGD 4.8 million in the prior period[50] Compliance with the Corporate Governance Code During the reporting period, the Company applied and complied with all applicable provisions of the Corporate Governance Code, with the sole exception of Independent Non-executive Director Mr. Li Yunping's absence from the 2023 Annual General Meeting on June 28 due to personal reasons - The Company has complied with the Corporate Governance Code, except for one Independent Non-executive Director, Mr. Li Yunping, who was unable to attend the 2023 Annual General Meeting due to personal reasons[56]