Revenue Performance - For the year ended December 31, 2023, Sino-Life Group Limited reported revenue of approximately RMB 72,570,000, a year-on-year decrease of 6.9% from RMB 77,969,000 in the prior year[22]. - Revenue from the People's Republic of China was approximately RMB 65,838,000, representing a year-on-year decrease of 11.6% from RMB 74,468,000[23]. - Revenue from Taiwan increased by 31.5% year-on-year to approximately RMB 2,014,000, compared to RMB 1,531,000 in the prior year[23]. - Revenue from funeral arrangement and related consultancy services in Hong Kong decreased by 14.8% year-on-year to approximately RMB 1,089,000, down from RMB 1,278,000[23]. - Revenue from the Chinese market was approximately RMB 65,838,000, down 11.6% from RMB 74,468,000 in the prior year[25]. - The Group's revenue from funeral services and cremation services experienced a single-digit percentage decrease due to the high base effect in 2022[34]. - Revenue from Hong Kong reached approximately RMB 4,158,000, with RMB 3,069,000 from stem cells and immunocytes, marking a significant increase from zero in the prior year[51]. - Revenue from Vietnam was approximately RMB 560,000, a decrease from RMB 692,000 in the prior year[57]. Economic Environment - China's GDP for 2023 reached RMB 126.06 trillion, reflecting a year-on-year increase of 5.2% at constant prices[21]. - The overall economic environment remains challenging, with China facing pressures of shrinking demand, supply shocks, and weakening expectations[28]. - The Chinese government has implemented macro policy adjustments to promote high-quality and sustainable economic development amidst external pressures[21]. - The Group's performance was impacted by insufficient effective demand and overcapacity in certain industries within the Chinese market[21]. - The global economy may experience a soft landing, which could stabilize exports and reduce pressure on the RMB exchange rate[158]. Business Strategy and Focus - The Group's business model focuses on traditional funeral services and emerging biotechnology, with traditional services accounting for a large proportion of overall business[22]. - The Group aims to diversify income sources and enhance returns by focusing on both traditional funeral services and emerging biotechnology[36]. - The biotechnology sector is a long-term focus for the Group, with a specialized investment platform established to support its development[27]. - The Group plans to allocate more resources to support the development of its biotechnology business to promote high-quality growth[28]. - The Group aims to enhance its controlling position in Zhongke Zhenhui and Guangdong Zhenyuan to improve operational efficiency and decision-making[171]. Financial Performance - The Group's total revenue for the year was RMB 72,570,000, with a profit margin of 6.5%, compared to RMB 77,969,000 and a profit margin of 21.0% in the prior year[62]. - Cost of sales for the Year increased to approximately RMB 39,089,000, up by approximately 2.4% from RMB 38,169,000 in the Prior Year, mainly due to inflationary pressure on funeral services and increased costs of biotechnical machinery[71]. - Gross profit for the Year was approximately RMB 33,481,000, reflecting a year-on-year decrease of 15.9% from RMB 39,800,000, primarily due to the funeral services in the PRC[72]. - The gross profit margin for the Year was approximately 46.1%, down by 4.9% from approximately 51.0% in the Prior Year, attributed to lower margins from advanced biotechnical machinery sales and decreased profit margins in the funeral business[73]. - Other income and net gains decreased by approximately 14.5% to RMB 2,571,000 from RMB 3,007,000 in the Prior Year, mainly due to a reduction in the written back provision for service costs[74]. Investment and Financial Management - The Group invested approximately RMB 14,532,000 in equity and debt securities, and ETFs listed outside Hong Kong, down from RMB 26,006,000 in 2022[98]. - The total value of the investment portfolio decreased by approximately RMB 11,474,000 during the year[102]. - The Group's financial management strategy focuses on maintaining a suitable level of liquidity to meet operational requirements and acquisition opportunities[96]. - The Group remains in a healthy liquidity position but acknowledges uncertainties in economic conditions that may impact financial results[97]. - The gearing ratio as of December 31, 2023, was approximately 60.06%, an increase from 54.07% in 2022[118]. Corporate Governance - The company has amended its articles of association to align with the GEM Listing Rules, effective from January 1, 2022, providing flexibility for conducting general meetings in various formats[184][185]. - The board composition includes three independent non-executive directors as of June 7, 2023, complying with GEM Listing Rules requirements[182][190]. - The company adopted a board diversity policy to ensure a balance of skills, experience, and perspectives among board members[191]. - The company confirmed compliance with the code of conduct regarding directors' securities transactions throughout the year[188]. - The company will continue to improve its corporate governance practices to adapt to business developments and ensure compliance with the latest regulations[181]. Employee and Operational Changes - The company employed 202 employees as of December 31, 2023, down from 218 employees in 2022[156]. - The Group's stock option plan has 18,532,000 options unexercised as of December 31, 2023, with 7,424,000 options having expired during the year[161]. - The Group's credit risk is primarily associated with trade receivables, with a credit policy in place to monitor exposure continuously[135]. - The Group measures loss allowances for trade receivables based on lifetime expected credit losses, adjusting for regional economic conditions[141]. Acquisitions and Investments - On April 26, 2023, the Group entered into an agreement to acquire a 20.25% equity interest in Zhongke Zhenhui for RMB 15,930,000, to be satisfied through the issuance of Convertible Bonds[144]. - On April 26, 2023, the company entered into a sale and purchase agreement to acquire a 20.25% equity interest in Zhongke Zhenhui for RMB 15,930,000 (approximately HK$ 18,160,000) from Nanyue CB[145]. - The company also entered into a second sale and purchase agreement to acquire a 21.43% equity interest in Guangdong Zhenyuan for RMB 15,000,000 (approximately HK$ 17,100,000) from Shenzhen Huaxin[148]. - This second acquisition will be satisfied by issuing 142,500,000 shares under a specific mandate granted by independent shareholders[148].
中国生命集团(08296) - 2023 - 年度财报