康健國際醫療集團有限公司 2024 年報 2 公司資料 1 目錄 4 主席兼行政總裁報告 8 管理層討論與分析 24 董事個人資料 31 環境、社會及管治報告 64 董事會報告 95 企業管治報告 111 獨立核數師報告 119 綜合損益及其他全面收益表 120 綜合財務狀況表 122 綜合權益變動表 124 綜合現金流量表 127 綜合財務報表附註 245 主要物業資料 246 財務摘要 247 詞彙表 公司資料 康健國際醫療集團有限公司 2024 年報 董事會 執行董事 蔡加讚先生 （主席兼行政總裁） 霍兆榮醫生 張霄雪女士 劉詩音先生 （於二零二五年二月二十四日辭任） 黃宇先生 （於二零二五年二月二十四日獲委任） 非執行董事 李蕙苓女士 劉淑卿女士 劉陽先生 張蕾娣女士 獨立非執行董事 于學忠先生 徐衛國博士 韓文欣先生 陳偉根先生 張加銘先生 崔永昌先生 董事委員會 審核委員會 陳偉根先生 （主席） 劉陽先生 徐衛國博士 張加銘先生 薪酬委員會 張加銘先生 （主席） 劉陽先生 于學忠先生 陳偉根先生 提名委員會 蔡加讚先生 （主席） 于學忠先生 徐衛國博士 崔永昌先生 公司秘書 盧偉強先生 （於二零二 ...

Financial Performance - The group recorded revenue of approximately HKD 1,833,795,000 for the year, a slight increase from HKD 1,833,038,000 in the previous year, representing a growth of 0.04%[3] - The net loss for the group was approximately HKD 158,207,000, compared to a net loss of HKD 159,089,000 in the previous year, indicating a reduction in loss of 0.55%[3] - The total comprehensive loss attributable to the company's owners was HKD 257,087,000, compared to HKD 231,360,000 in the previous year, representing an increase in loss of 11.09%[5] - The basic and diluted loss per share increased to HKD 3.01 from HKD 2.87, indicating a worsening of loss per share by 4.87%[5] - The company reported a pre-tax loss of HKD 120,863 for the year, reflecting challenges in various segments[25] - The company reported a net loss attributable to shareholders of 203,703,000 HKD for 2024, compared to a loss of 194,210,000 HKD in 2023, indicating an increase in losses of 4.8%[34] Assets and Liabilities - The group's total assets decreased to approximately HKD 3,380,347,000 from HKD 3,618,746,000, reflecting a decline of 6.58%[3] - The group's non-current assets decreased to HKD 2,232,058,000 from HKD 2,558,678,000, a decline of 12.76%[6] - The total liabilities decreased slightly to HKD 594,198,000 from HKD 597,372,000, a reduction of 0.46%[7] - The group's bank borrowings decreased to HKD 80,683,000 from HKD 87,563,000, with non-current liabilities amounting to HKD 63,089,000[42] - The group's expected credit loss provision for other receivables was approximately HKD 6,704,000, compared to zero in the previous year[43] - The company's receivables and other receivables totaled 462,852,000 HKD in 2024, down from 511,071,000 HKD in 2023, reflecting a decrease of 9.4%[38] Revenue Breakdown - Revenue from Hong Kong medical services reached HKD 787,053,000, an increase from HKD 770,996,000 in the previous year, representing a growth of 2.9%[16] - Revenue from mainland China hospital management and medical services was HKD 546,615,000, down from HKD 552,795,000, reflecting a decrease of 1.1%[16] - The company reported a total service income of HKD 1,819,007,000 under the gross basis, compared to HKD 1,817,027,000 in the previous year, showing a marginal increase of 0.1%[18] - Revenue from Hong Kong was HKD 1,287,180, up from HKD 1,280,243 in the previous year, while revenue from other regions in China decreased to HKD 546,615 from HKD 552,795[26] Dividends and Shareholder Returns - The group proposed a final dividend of HKD 0.12 per share, unchanged from the previous year[2] - The company declared a final dividend of 0.12 HKD per share for 2024, consistent with the dividend declared for 2023, totaling approximately 8,128,000 HKD[33] Operational Developments - The company has established a comprehensive service system covering primary to high-end cross-specialty medical services, enhancing its competitive advantage and market share[61] - The company has expanded its health management operations in mainland China, responding to the rising demand for healthcare due to an aging population and increasing chronic disease rates[55] - The company has implemented cost control measures and improved operational efficiency to enhance overall competitiveness amid economic uncertainties and industry challenges[54] - The group is actively seeking potential acquisition opportunities in Hong Kong and mainland China to expand its operational scale[85] Employee and Cost Management - The total employee cost for the year was approximately HKD 743,697,000, compared to HKD 740,650,000 in 2023, with 1,441 employees hired, an increase from 1,399 in the previous year[91] - The company reported a total employee cost of 743,697,000 HKD for 2024, a marginal increase from 740,650,000 HKD in 2023[32] Future Outlook and Strategic Initiatives - The company plans to leverage its medical resources to support the Hong Kong government's primary healthcare initiatives, enhancing collaboration on community health programs[78] - The group plans to open three general medical centers and one pediatric center in Sha Tin by Q1 2025, enhancing primary and multi-specialty services[80] - The group aims to strengthen its specialist brand presence in densely populated communities, with a new cardiology center opening in Tuen Mun by Q1 2025[80] - The group will establish a medical advisory committee to ensure compliance with legal and social needs while enhancing the quality of medical services[80] Market Position and Customer Engagement - Major customer A accounted for 21% of total revenue in 2024, down from 22% in 2023, indicating a slight diversification in customer base[28] - The company has developed a strong customer base in health management, demonstrating the effectiveness of its forward-looking operational strategies in mainland China[55] - TBMG has built a complete customer database, utilizing big data to enhance customer satisfaction and retention through personalized services[76] Compliance and Governance - The group has received approval from its auditor for the consolidated financial statements for the year, confirming the accuracy of the reported figures[107] - The executive directors include the chairman and CEO, along with several other key members, indicating a stable leadership structure[110]

Financial Performance - The group recorded revenue of approximately HKD 914,280,000, a slight decrease from HKD 916,833,000 in the previous year[9]. - The group reported a net loss of approximately HKD 28,542,000, compared to a net profit of HKD 38,683,000 in the previous year[9]. - For the first half of 2024, the group's unaudited operating profit was approximately HKD 41,030,000, compared to HKD 37,464,000 in 2023, indicating a positive growth trend despite external challenges[16]. - The group recorded an unaudited loss of approximately HKD 28,542,000 for the first half of 2024, a significant decline from a profit of HKD 38,683,000 in the same period of 2023[16]. - The company reported a total comprehensive loss of HKD 96,094,000 for the six months ended June 30, 2024, compared to a loss of HKD 50,468,000 in the same period of 2023, representing an increase in loss of 90.5%[105]. - The group reported a loss attributable to shareholders of HKD 47,676,000 for the six months ended June 30, 2024, compared to a profit of HKD 21,061,000 in 2023[145]. Assets and Liabilities - The group's current assets net value was approximately HKD 1,360,735,000, up from HKD 1,344,516,000 as of December 31, 2023[9]. - The total net assets of the group are approximately HKD 3,524,725,000 as of June 30, 2024[76]. - The total liabilities decreased to HKD 489,309,000 from HKD 597,372,000, indicating a decrease of 18.1%[107]. - The company's equity attributable to owners decreased to HKD 3,137,907,000 from HKD 3,242,129,000, a decline of 3.2%[107]. - The company reported a liability portion of convertible bonds amounting to HKD 109,633,000 as of June 30, 2024, down from HKD 223,756,000 at the end of 2023, reflecting a significant reduction[167]. Revenue Breakdown - Medical service revenue for the first half of 2024 was approximately HKD 394,462,000, representing an increase from HKD 389,333,000 in 2023, and accounting for 43.14% of total revenue[18]. - Revenue from Hong Kong medical services, including medical and dental services, was HKD 394,462,000, up from HKD 389,333,000 year-on-year[125]. - Revenue from dental services increased to HKD 33,558,000, compared to HKD 29,757,000 in the previous year, reflecting an increase of approximately 12.0%[125]. - Revenue from the Hong Kong medical network management business was HKD 250,043,000, up from HKD 238,105,000, indicating a growth of about 5.0%[125]. - Revenue from hospital management and medical services in mainland China was HKD 264,377,000, down from HKD 283,378,000, representing a decline of approximately 6.7%[125]. Operational Highlights - The group operates a network of 422 medical service points, including 239 general practice points and 68 specialist points, with a total of 798 medical professionals providing services[17]. - The group continues to support government primary healthcare initiatives, participating in various public-private collaboration health programs[20]. - The high-end integrated specialty brand, 中卓醫務, has expanded its services to include 23 types of specialty medical and clinical services, enhancing its competitive advantage[23]. - The internet hospital managed by Nanyang Xiangrui served over 850,000 patients since its launch in March 2022, with 44 departments and around 400 doctors providing various online services[29]. - The newly opened sports rehabilitation center in Nanyang City is the first of its kind, offering personalized health management plans across nine areas, targeting various age groups and health conditions[32]. Financial Management - The company has approximately HKD 300,000,000 in undrawn bank financing available as of June 30, 2024, maintaining financial flexibility[48]. - The company has pledged assets valued at approximately HKD 300,802,000 as of June 30, 2024, for mortgage loans and general bank financing[57]. - The company plans to utilize the remaining net proceeds from the first tranche for acquisitions and investments in healthcare-related businesses by the end of 2026[67]. - The company has initiated legal proceedings against the defendants for the claim amount of HKD 97,956,690 due to non-fulfillment of profit guarantees[61]. Market and Competition - The group is facing increased competition in the non-emergency healthcare services sector due to rising cross-border medical consumption trends[16]. - The group continues to expand its health management services in Guangdong, Shenzhen, and Jinan, with a focus on local healthcare needs and strategic partnerships with nearby hospitals[33]. - Vio's organic growth was supported by a highly experienced management team and efficient IT systems, despite challenges such as a declining workforce and rising employee costs due to population outflow in Hong Kong[26]. Corporate Governance - The company continues to adhere to the corporate governance standards as outlined in the listing rules[94]. - The audit committee reviewed the financial statements for compliance with accounting principles and internal controls[95]. - The board believes that having the same person serve as both chairman and CEO will ensure consistent leadership and enhance operational efficiency[90].

Financial Performance - The group recorded revenue of approximately HKD 914,280,000 for the six months ended June 30, 2024, a slight decrease of 0.2% compared to HKD 916,833,000 for the same period in 2023[1]. - The net loss for the group was approximately HKD 28,542,000, compared to a net profit of HKD 38,683,000 in the previous year, representing a significant decline[2]. - The group's gross profit increased to HKD 249,553,000, up 2.3% from HKD 242,462,000 in the prior year[2]. - The company reported a pre-tax loss of HKD 9,917,000 for the six months ended June 30, 2024, compared to a profit of HKD 58,100,000 in the same period of 2023[16][17]. - The net loss attributable to shareholders for the six months ended June 30, 2024, was HKD 47,676,000, compared to a profit of HKD 21,061,000 in the prior year[25]. - The company reported an unaudited loss of approximately HKD 28,542,000 for the six months ended June 30, 2024, compared to a profit of approximately HKD 38,683,000 for the same period in 2023[31]. Revenue Breakdown - Revenue from Hong Kong medical services reached HKD 394,462,000, up from HKD 389,333,000, indicating an increase of 1.5% year-over-year[12]. - Revenue from dental services increased to HKD 33,558,000, compared to HKD 29,757,000, representing a growth of 12.0%[12]. - Revenue from Hong Kong medical network management business was HKD 250,043,000, up from HKD 238,105,000, showing a growth of 5.0%[12]. - Revenue from hospital management and medical services in mainland China was HKD 264,377,000, down from HKD 283,378,000, reflecting a decrease of 6.7%[12]. - Total operating income from external customers in Hong Kong was HKD 649,903,000, compared to HKD 633,455,000 in the previous year[18]. Financial Position - The current ratio improved to 3.78 as of June 30, 2024, compared to 3.25 as of December 31, 2023, indicating better short-term financial health[1]. - The total assets less current liabilities amounted to HKD 3,786,395,000, down from HKD 3,903,194,000 at the end of 2023[5]. - The group's net asset value was approximately HKD 3,524,725,000 as of June 30, 2024, compared to HKD 3,618,746,000 at the end of 2023[1]. - The total liabilities to equity ratio remained low at 2.68% as of June 30, 2024, compared to 2.70% at the end of 2023[1]. - The group's current assets net value was approximately HKD 1,360,735,000, up from HKD 1,344,516,000 as of December 31, 2023, with a current ratio of 3.78 compared to 3.25 previously[56]. - The total equity attributable to the company's owners was approximately HKD 3,137,907,000 as of June 30, 2024, down from HKD 3,242,129,000 as of December 31, 2023[58]. Dividends and Share Performance - The group did not recommend an interim dividend for the six months ended June 30, 2024, consistent with the previous year[1]. - The company reported a basic and diluted loss per share of HKD 0.70 for the period, compared to earnings of HKD 0.31 per share in the previous year[3]. - The average number of shares used for calculating basic and diluted loss per share was 6,773,522,452 for the six months ended June 30, 2024[25]. Operational Highlights - The group operates a network of 422 medical service points, including 239 general practice points and 68 specialist points, with a total of 798 medical professionals as of June 30, 2024[37]. - The high-end integrated specialty brand, Zhongzhu Medical, has established a multi-specialty medical center in Hong Kong's core business district, offering 23 types of specialty medical services[40]. - The internet hospital at Nanshi Hospital has served over 850,000 patients since its launch in March 2022, currently offering services across 44 departments with around 400 doctors available online[42]. - The newly opened Nanyang Sports Rehabilitation Center integrates multiple disciplines and offers personalized health management plans, following the national strategy of integrating sports and medicine[43]. Challenges and Market Conditions - The overall economic environment remains challenging, with consumer spending growth in Hong Kong still weak, impacting the healthcare sector[38]. - Fair value losses on investment properties significantly increased to approximately HKD 26,870,000 for the six months ended June 30, 2024, from approximately HKD 2,896,000 in 2023, primarily due to a contraction in the Hong Kong property market[31]. - The company incurred finance costs of HKD 11,969,000 for the six months ended June 30, 2024, compared to HKD 10,915,000 in the same period of 2023[20]. Corporate Governance - The company has not complied with the corporate governance code C.2.1, as the roles of Chairman and CEO are held by the same individual, Mr. Cai Jiazan, which the board believes ensures consistent leadership and operational efficiency[67]. - The company is currently evaluating its governance structure and will continue to review the composition of its board[69]. Future Plans and Strategies - TBMG aims to integrate healthcare resources across Hong Kong and mainland China to build a comprehensive healthcare service ecosystem in the Greater Bay Area[49]. - Vio plans to enhance cooperation with self-operated and joint venture medical centers to capture more market share and drive revenue growth in 2024[51]. - The group plans to continue supporting government initiatives for primary healthcare development and actively participate in public-private partnership health programs in 2024[49].

Financial Performance - The adjusted net profit guarantee for Central Medical is set at no less than HKD 30,000,000 for the fiscal years ending March 31, 2022, 2023, and 2024[1]. - The company confirmed that the adjusted net profit for the fiscal year ending March 31, 2022, met the performance target, achieving at least HKD 30,000,000[2]. - The adjusted net profit for the target group for the year ended March 31, 2023, was approximately HKD 23.5 million, which fell short of performance targets[38]. - The company recorded a revenue of approximately HKD 1,833,038,000 for the year, representing a year-on-year increase of about 19.37% from HKD 1,535,580,000 in the previous year[112]. - The group recorded a revenue increase of approximately 19.37%, but reported a consolidated loss of about HKD 159,089,000, compared to a profit of HKD 49,522,000 in the previous year[98]. - The operating profit from core business activities was approximately HKD 86,386,000, a significant increase from HKD 5,355,000 in the previous year[98]. - The company reported a fair value loss on investment properties of approximately HKD 98,626,000, a significant increase from HKD 6,893,000 in the previous year, primarily due to a severe contraction in the Hong Kong property market[113]. - The group’s Hong Kong medical network management revenue for 2023 was approximately HKD 498.19 million, an increase from HKD 429.46 million in 2022, accounting for about 27.18% of total revenue[122]. - The segment performance for the Hong Kong medical network management was approximately HKD 43.10 million, representing a year-on-year growth of about 38.51% from HKD 31.12 million in 2022[122]. Strategic Acquisitions and Market Expansion - The acquisition of Central Medical will increase the company's market share and expand its medical team in the private healthcare sector in Hong Kong[6]. - The company aims to further solidify its position in the private healthcare services sector through strategic acquisitions and market expansion[6]. - The company has identified potential acquisition opportunities in Hong Kong and mainland China to expand its operational scale and business scope[193]. Corporate Governance and Management - The company has undergone significant changes in its board of directors, with multiple appointments and resignations occurring in 2023 and 2024[16]. - The company is committed to maintaining good corporate governance standards to enhance transparency and accountability to shareholders[56]. - The independent non-executive directors will review and confirm the renewal of continuing connected transactions annually to ensure fairness and reasonableness[48]. - The group has implemented a standard operating procedure across its medical centers to minimize the risk of medical negligence and enhance its brand reputation[194]. Healthcare Services and Community Impact - The group operates over 400 medical service points, providing primary, specialist, and dental services, adhering to the "small ailments in the community" concept[89]. - The group has participated in various government-funded primary healthcare programs, providing comprehensive primary care and chronic disease management in local communities[90]. - The group aims to shift the healthcare system focus from treatment to prevention, aligning with the Hong Kong government's primary healthcare initiatives[89]. - The group supports the government's primary healthcare development strategy and has participated in various government-funded healthcare programs[145]. - The group is actively participating in government-supported primary healthcare initiatives to strengthen its collaboration with the government[162]. Financial Instruments and Capital Management - The company issued convertible bonds in three tranches totaling HKD 356,000,000, with varying maturities of 12, 24, and 36 months[7]. - The outstanding principal amount of the B tranche convertible bonds is HKD 120,000,000, while the C tranche is HKD 116,000,000 as of December 31, 2023[10]. - The convertible bonds can be converted into shares at a conversion price of HKD 0.76 per share[8]. - The group has no significant contingent liabilities as of December 31, 2023, consistent with the previous year[171]. - The group has no capital expenditures contracted but not provided for in the financial statements as of December 31, 2023[172]. - The group has pledged assets worth approximately HKD 313,130,000 as collateral for mortgage loans and general bank financing[198]. Market Trends and Economic Environment - The Hong Kong economy is showing signs of recovery post-pandemic, with local demand rebounding strongly[73]. - The improvement in the local labor market has led to a rise in private consumption expenditure and increased group medical benefits offered by companies[73]. - The government is encouraging participation in voluntary health insurance plans, supporting the growth of private healthcare service demand[73]. - The aging population and rising chronic disease rates are posing challenges to the public healthcare system[73]. - The government has collaborated with the private healthcare sector to launch various funding or public-private partnership programs[73]. - The establishment of a community-based primary healthcare system is part of the government's strategy to alleviate pressure on public healthcare services[73]. Operational Efficiency and Service Quality - The group continues to invest in upgrading its IT systems, including the development of a paperless electronic invoicing system to improve cost control and expedite claims processing[123]. - The group plans to optimize the consultation environment, medical instruments, and facilities at its medical centers to enhance medical outcomes and improve operational and service efficiency[164]. - The group emphasizes the importance of quality customer service and data security awareness among its employees[151]. - The health management sector is focusing on cost control and exploring new business opportunities to enhance service capabilities and profitability[140]. Human Resources and Employee Development - The total employee cost for the year was approximately HKD 740,650,000, compared to HKD 718,292,000 in 2022, reflecting a year-on-year increase[170]. - The group employed 1,399 staff as of December 31, 2023, slightly up from 1,395 in 2022[170]. - The group emphasizes the importance of training for employee personal growth and enhancing customer service quality[170]. - The group aims to invite more experienced specialist doctors and healthcare professionals to meet the growing demand for high-end medical services in Hong Kong and the Greater Bay Area[164]. Future Outlook and Growth Strategies - The group plans to leverage the recovering tourism industry in Hong Kong to attract more visitors for medical and beauty services, aiming to expand its customer base and market share[193]. - The group aims to integrate its healthcare resources across Hong Kong and mainland China, creating a comprehensive healthcare service ecosystem in the Guangdong-Hong Kong-Macao Greater Bay Area[162]. - The group plans to collaborate with various institutions to develop medical tourism, aiming to expand its customer base and revenue sources[164]. - The group is committed to sustainable development in the healthcare industry, aiming to become a leading international medical group rooted in Hong Kong and serving the Greater Bay Area and beyond[94].

Financial Performance - The group recorded revenue of approximately HKD 1,833,038,000 for the year, compared to HKD 1,535,580,000 in 2022, representing an increase of about 19.4%[1] - The group reported a loss of approximately HKD 159,089,000 for the year, compared to a profit of HKD 49,522,000 in 2022, indicating a significant decline in performance[1] - The gross profit for the year was HKD 501,948,000, compared to HKD 414,446,000 in 2022, reflecting an increase of approximately 21.1%[15] - Total revenue for 2023 reached HKD 1,821,980, an increase of 19.6% from HKD 1,523,284 in 2022[26] - The net profit for 2023 was HKD 4,953, compared to HKD 3,441 in 2022, reflecting a growth of 44.1%[26] - The company reported a comprehensive loss of approximately HKD 159,089,000 for the year, compared to a profit of HKD 49,522,000 in 2022, and a loss attributable to shareholders of approximately HKD 194,210,000, down from a profit of HKD 15,289,000 in 2022[142] Cash and Liquidity - The group’s cash and cash equivalents, including bank deposits, amounted to approximately HKD 1,431,426,000 as of December 31, 2023, up from HKD 1,370,592,000 in 2022[1] - The current ratio of the group was 3.25, down from 3.90 in 2022, while the debt ratio was 2.70%, a decrease from 3.26% in the previous year[1] - The company’s cash and cash equivalents decreased to HKD 33,560,000 in 2023 from HKD 182,628,000 in 2022, reflecting changes in financing activities[78] - The group held cash and bank balances of approximately HKD 1,032,079,000 as of December 31, 2023, compared to HKD 971,939,000 in 2022[199] - The group's current assets net value was approximately HKD 1,344,516,000 as of December 31, 2023, down from HKD 1,433,526,000 in 2022[200] Dividends - The board recommended a final dividend of HKD 0.12 per share, unchanged from the previous year[1] - The company declared a final dividend of HKD 0.12 per share for the year ended December 31, 2023, down from HKD 0.15 per share in 2022, totaling approximately HKD 8,128,000 compared to HKD 11,289,000 in the previous year[48] - The company proposed a final dividend of HKD 0.12 per share for the year ended December 31, 2023, unchanged from the previous year[91] Operational Segments - Revenue from Hong Kong medical services was HKD 617,116, while revenue from mainland China hospital management services was HKD 476,710[31] - The company identified four operational segments: Hong Kong medical services, Hong Kong medical network management, mainland China hospital management, and others[27] - The Hong Kong medical services segment generated revenue of approximately HKD 770,996,000, accounting for about 42.06% of total revenue, with a growth of over 20% in patient visits[146] - The company’s Hong Kong medical network management revenue was approximately HKD 498,189,000, representing about 27.18% of total revenue, with a segment profit growth of approximately 38.51%[151] Expenses and Costs - Administrative expenses were HKD 396,200,000, slightly down from HKD 397,959,000 in the previous year[15] - The group’s financing costs increased to HKD 23,416,000 from HKD 12,684,000 in 2022, indicating a rise in financial expenses[15] - The total interest expenses increased to HKD 23,416,000 in 2023 from HKD 12,684,000 in 2022, reflecting a significant rise in borrowing costs[42] - The company reported a significant increase in employee costs, with total employee costs reaching HKD 740,650,000 in 2023, compared to HKD 718,292,000 in 2022[47] Asset Management - The group’s total assets as of December 31, 2023, were approximately HKD 1,941,888,000, compared to HKD 1,927,845,000 in 2022[17] - Non-current assets in Hong Kong decreased to HKD 1,906,475 in 2023 from HKD 2,202,127 in 2022[37] - The company’s accounts receivable increased to HKD 380,905,000 in 2023 from HKD 346,313,000 in 2022, while accounts payable rose to HKD 157,265,000 from HKD 153,488,000[74][95] - The company’s total liabilities increased to HKD 299,517,000 in 2023 from HKD 291,511,000 in 2022, reflecting a rise in other payables and accrued expenses[74] Impairment and Losses - The company recognized an impairment loss on goodwill of HKD (102,877,000) in 2023, significantly higher than the HKD (487,000) in 2022[41] - Impairment losses on various assets amounted to approximately HKD 158,112,000, a substantial increase from HKD 4,944,000 in the previous year, primarily due to adverse economic conditions in Hong Kong and mainland China[115] - The fair value change of investment properties resulted in a loss of HKD (98,626,000) in 2023, compared to a loss of HKD (6,893,000) in 2022[41] Strategic Initiatives - The company plans to expand its services in mainland China, which showed a revenue increase from HKD 476,710 in 2022 to HKD 552,795 in 2023[37] - The company plans to leverage the recovery of the tourism industry in Hong Kong to support the growth of private healthcare services[186] - The group aims to integrate healthcare resources across Hong Kong and mainland China, creating a comprehensive healthcare service ecosystem in the Greater Bay Area[188] - The company is actively participating in government-funded primary healthcare programs to enhance its collaboration with the government[188] - The high-end integrated specialty brand, Zhongzhu Medical, is planning to develop medical tourism partnerships to expand its customer base[191] Market Position and Growth - The group’s healthcare management business in mainland China continued to thrive post-pandemic, contributing significantly to revenue and profit[117] - The group plans to capture more market share by providing quality services and bidding for new business, aiming for further revenue growth[193] - Nanyang Xiangrui's hospital management business has shown steady growth, with revenue and net profit continuing to increase, highlighting the competitive advantage in hospital management[128] - TBMG recorded a double-digit revenue growth year-on-year despite challenges in the operating environment, with a total of 13 doctors employed compared to 14 in 2022[161]

Financial Performance - The group recorded a profit of approximately HKD 38,683,000, compared to a loss of HKD 6,824,000 in 2022[10] - The company recorded revenue of approximately HKD 916,833,000 in the first half of 2023, compared to HKD 710,873,000 in the same period last year, representing a significant increase[47][50] - The company's unaudited consolidated profit for the first half of 2023 was approximately HKD 38,683,000, a significant improvement from a loss of HKD 6,824,000 in the same period last year[50] - TBM recorded a significant improvement in revenue and net profit in the first half of 2023, driven by a surge in demand for beauty and health services post-pandemic[74] - The company's share of profits from associates was approximately HKD 3,399,000 in the first half of 2023, compared to a loss of HKD 11,243,000 in the same period last year[50] - Nanyang Xiangrui, a subsidiary of the group, achieved double-digit revenue growth in the first half of 2023, with Nanshi Hospital under its management recording over 30% growth in outpatient visits, hospitalizations, and surgeries compared to pre-pandemic levels[100][102] - Nanyang Ruishi Eye Hospital's net profit doubled year-on-year, and it has completed over 10,000 SMILE laser vision correction surgeries with a post-operative satisfaction rate of 99.9%[104] - The company's Hong Kong medical network management business, Vio, generated revenue of approximately HKD 238.1 million in the first half of 2023, accounting for 25.97% of the group's total revenue, with a year-on-year increase in net profit[121] - The company's medical services revenue in the first half of 2023 was approximately HKD 389.3 million, representing 42.46% of the group's total revenue, driven by a significant rebound in outpatient visits[124] - Total equity as of January 1, 2023, was HK$3,853,590 thousand, with a net profit of HK$21,061 thousand[189] Assets and Liabilities - The group's net current assets and net assets were approximately HKD 1,309,686,000 and HKD 3,786,892,000, respectively, as of June 30, 2023[18] - The company's bank balances and cash holdings as of June 30, 2023, were approximately HKD 985,990,000, with bank time and pledged deposits of approximately HKD 324,524,000[38] - The company's equity attributable to owners was approximately HKD 3,422,793,000 as of June 30, 2023, compared to HKD 3,491,416,000 as of December 31, 2022[39] - The company's bank borrowings as of June 30, 2023, were approximately HKD 82,178,000, with HKD 3,484,000 due within one year[38] - The company's unused bank financing available as of June 30, 2023, was HKD 270,000,000[38] - The company's current ratio was 3.24, and its debt ratio was 2.40% as of June 30, 2023[48] - The company redeemed HKD 4,105,000 of convertible bonds during the first half of 2023, with the outstanding principal amount of convertible bonds being HKD 236,000,000 as of June 30, 2023[55] - Net current assets of the group amounted to approximately HKD 1,309,686,000 as of June 30, 2023, compared to HKD 1,433,526,000 as of December 31, 2022[86] - The group's current ratio was 3.24 as of June 30, 2023, down from 3.90 as of December 31, 2022[86] - The group's debt-to-equity ratio decreased to 2.40% as of June 30, 2023, from 3.26% as of December 31, 2022[86] - Approximately HKD 341,064,000 of the group's assets were pledged as collateral for mortgages and general bank financing as of June 30, 2023, up from HKD 330,914,000 as of December 31, 2022[90] - The company's total net assets as of June 30, 2023, amounted to approximately HKD 3,786,892,000, with net current assets of approximately HKD 1,309,686,000[159] - The company's total current assets as of June 30, 2023, were HKD 1,895,286,000, compared to HKD 1,927,845,000 as of December 31, 2022[185] - Bank balances and cash stood at HKD 985,990,000 as of June 30, 2023, slightly up from HKD 971,939,000 at the end of 2022[185] Capital and Financing - The group issued convertible bonds with a total value of HKD 476,000,000, with HKD 120,000,000 paid in cash and the remainder issued in three tranches[28] - The group plans to use HKD 150 million from the net proceeds, with HKD 104 million already utilized and HKD 46 million remaining unused, expected to be used by the end of 2023[27] - The company issued 1,785,098,644 shares to China Life Insurance at HKD 0.98 per share, raising approximately HKD 1.746 billion[114] - The company plans to use HKD 996 million in unutilized net proceeds from the China Life Group subscription for developing cross-border medical platforms and medical tourism businesses by the end of 2023[131][132] - The outstanding convertible bonds of HKD 236,000,000, if fully converted at a conversion price of HKD 0.76 per share, would result in the issuance of 303,000,000 new shares, representing approximately 4.47% of the company's issued share capital as of the interim report date and approximately 4.28% of the enlarged issued share capital post-conversion, leading to a dilution of approximately 4.3% for existing shareholders[135] - The company issued convertible bonds with a total amount of HKD 120,000,000, maturing 24 months from the issuance date, with a conversion price of HKD 0.76 per share and no interest attached[155] - The company's total issued share capital as of June 30, 2023, was 6,773,522,452 shares, used for calculating the approximate percentage of shareholdings[137][142] - The company repurchased a total of 27,026,000 shares on the Hong Kong Stock Exchange during the six months ended June 30, 2023, at a total cost of HKD 9,887,350 (before fees), with the highest price per share at HKD 0.370 and the lowest at HKD 0.345[144] - The company's subsidiary repurchased shares on January 4, 2023 (15,100,000 shares at HKD 0.370-0.360), January 5, 2023 (11,000,000 shares at HKD 0.365-0.360), and January 9, 2023 (926,000 shares at HKD 0.350-0.345)[144] - Repurchase of ordinary shares amounted to HK$10,027 thousand[189] Business Expansion and Strategy - The group expanded its services by integrating traditional Chinese medicine (TCM) into its healthcare centers, offering services such as acupuncture, cupping, and massage[25] - The company's TBM business plans to expand by opening new stores in Hong Kong and mainland China, and will continue to seek potential acquisition opportunities to enhance scale and profitability[37] - The company plans to further integrate medical resources and build a cross-border comprehensive healthcare service ecosystem to meet diverse customer needs[79] - The acquisition and development of hospitals and medical institutions in China, with a focus on Guangdong Province, are part of the company's expansion strategy[72] - The company aims to strengthen its presence in the Greater Bay Area by integrating medical resources and promoting cross-border medical tourism[73] - The company is committed to building an international first-class medical group rooted in Hong Kong, serving the Greater Bay Area, and connecting with the global market[79] - The group expanded its orthopedic services in Tsuen Wan and Sha Tin districts, launching a new sports injury physical therapy sub-brand "Elite Physiotherapy and Sports Rehabilitation"[96] - The group completed the acquisition of Central Medical, a comprehensive private medical service provider in Hong Kong, in August 2022[97] - The company's health management centers in Jinan, Guangzhou, and Shenzhen resumed normal operations post-pandemic, with a growing customer base[107] - The company's hospital management business in Nanyang continues to grow rapidly, with plans to expand rehabilitation services and develop an internet hospital, aiming to increase patient revisit rates and enhance profitability[117] - The company's health management business in Guangzhou will launch a VIP reproductive service in collaboration with Shenzhen clinics, along with new services like cardiopulmonary exercise testing and traditional Chinese medicine for sleep disorders[119] - As of June 30, 2023, the company operates 417 medical service points, including 240 general clinics, 67 specialty clinics, 20 dental clinics, and 90 auxiliary service points, with a total of 792 medical professionals[120] - Vio expanded its medical network by adding new specialists and opened a new medical center in Sha Tin to meet growing demand for general medical services[123] - The company plans to expand its high-end specialty medical services, including recruiting specialists in respiratory, orthopedics, and psychiatry to meet growing demand[115] - Nanshi Hospital signed a strategic cooperation agreement with Shandong Heze Luxin Hospital to establish a stroke-focused medical alliance, marking its first step outside Henan Province[103] Market and Economic Conditions - The group benefited from the post-pandemic economic recovery in Hong Kong, with an increase in both mainland and international travelers, contributing to a turnaround from a loss to a profit[24] - The company expects local demand and inbound tourism to drive Hong Kong's economic growth in the second half of 2023, supported by government policies and public-private healthcare collaboration[78] - The company will actively participate in government-led public-private healthcare collaboration programs, focusing on chronic disease management and dental care[81] Corporate Governance and Compliance - The group did not recommend an interim dividend for the six months ended June 30, 2023, consistent with the previous year[19] - The company's directors and senior management held minimal interests in the company's shares or bonds, with Xu Canjie holding 4,000 shares (0.00006%) as of June 30, 2023[137] - The company's audit committee, consisting of three independent non-executive directors, reviewed the group's accounting principles, internal controls, and financial reporting, including the unaudited condensed consolidated financial statements for the six months ended June 30, 2023[149] - The company confirmed compliance with the Corporate Governance Code and the Model Code for Securities Transactions during the six months ended June 30, 2023[146][147] - The company has maintained sufficient public float as required by the listing rules, with no changes in the interests or short positions of directors or senior management[173][174] - The financial statements were prepared in accordance with Hong Kong Accounting Standards[197] - The accounting policies used in the interim financial statements are consistent with those in the annual financial statements[198] - The Chairman, Mr. Kong Tak Cheong, was unable to attend the Annual General Meeting due to health reasons[199] Shareholder Information - Major shareholders include China Life Insurance with 1,785,098,644 shares (26.35% pre-conversion, 25.23% post-conversion), Broad Idea with 1,418,576,764 shares (20.94% pre-conversion, 20.05% post-conversion), and Classictime with 790,442,000 shares (11.67% pre-conversion, 11.17% post-conversion)[136][142] - Dr. Wong Chun Wah holds a 49% beneficial interest in Ka Lam International Limited, which in turn holds 850 shares (85% equity) in Hong Kong Trauma and Orthopaedic Centre Limited[164] - Broad Idea holds 1,418,576,764 shares, with Dr. Cao and Dr. Tsai holding 50.1% and 49.9% beneficial interests, respectively[168] Operational Highlights - The group employed 1,400 staff as of June 30, 2023, with total employee costs (including directors' remuneration) of approximately HKD 374,556,000 for the six months ended June 30, 2023, compared to HKD 355,721,000 for the same period in 2022[92] - The group's remote medical services facilitated video consultations for Hong Kong residents and provided second medical opinions for overseas clients[99] - The group's medical tourism services catered to the needs of medical tourists, offering a one-stop medical tourism experience[99] - Nanshi Hospital's internet hospital services reached nearly 170,000 users in the first half of 2023, with a cumulative total of 420,000 users since its launch in March 2022[106] - Kangjian International Health Management Center in Jinan expanded its high-end health checkup market and launched a post-COVID-19 health recovery program, including at-home genetic testing services[107] - Guangzhou Comprehensive Outpatient Clinic plans to introduce cardiopulmonary exercise testing in the second half of 2023, targeting infertility, obesity, and sports injury populations[109] - The company utilized HKD 45 million from the proceeds of ordinary shares and convertible preferred shares for acquisitions, investments, and development of hospitals and medical institutions in China and Hong Kong[112] - Nanyang Ruishi Eye Hospital introduced the VisuMax laser system in August 2017, achieving significant technological and service advancements[104] - The company's shares are listed on the Hong Kong Stock Exchange[196] Financial Adjustments and Other Items - Exchange differences from overseas operations resulted in a loss of HK$54,118 thousand[189] - Fair value changes in equity instruments recorded a loss of HK$19,685 thousand[189] - Dividends paid to non-controlling interests were HK$4,373 thousand[189]

Financial Performance - For the six months ended June 30, 2023, the company reported a profit attributable to owners of HKD 21,061,000, compared to a loss of HKD 25,337,000 for the same period in 2022, representing a significant turnaround [3]. - Total comprehensive income attributable to owners for the period was a loss of HKD 50,468,000, compared to a loss of HKD 70,384,000 in the previous year, indicating an improvement [3]. - The basic and diluted earnings per share for the period was HKD 0.31, compared to a loss per share of HKD 0.34 in the same period last year [3]. - The group recorded an unaudited consolidated profit of approximately HKD 38,683,000 for the six months ended June 30, 2023, compared to a loss of approximately HKD 6,824,000 in 2022, primarily due to increased revenue and share of profits from associates [32]. - The group achieved a profit of approximately HKD 38,683,000 for the six months ended June 30, 2023, compared to a loss of HKD 6,824,000 for the same period in 2022 [124]. Revenue and Growth - Revenue from Hong Kong medical services was HKD 270,217,000, while revenue from hospital management and medical services in mainland China was HKD 233,613,000, contributing to total revenue of HKD 710,873,000 [17]. - The group's revenue for the six months ended June 30, 2023, was approximately HKD 916,833,000, an increase from approximately HKD 710,873,000 in 2022, driven by higher demand for medical services in Hong Kong and mainland China, as well as contributions from Central Medical Holdings Limited acquired in August 2022 [55]. - Medical services revenue for the first half of 2023 was approximately HKD 389,333,000, representing 42.46% of total revenue, up from 38.01% in 2022, attributed to a significant recovery in outpatient visits following the decline in COVID-19 cases [36]. - Revenue for the six months ended June 30, 2023, was HKD 916,833,000, an increase of 29% compared to HKD 710,873,000 in the same period of 2022 [159]. Expenses and Costs - The total comprehensive expenses for the period amounted to HKD 44,602,000, a decrease from HKD 66,393,000 in the previous year [3]. - The total cost of sales for the six months was HKD 674,371,000, compared to HKD 522,791,000 in the same period last year [159]. - Financing costs increased to HKD 10,915,000 from HKD 1,543,000 in the previous year, indicating a rise in borrowing costs [159]. Investments and Assets - As of June 30, 2023, approximately HKD 341.06 million of the group's assets were pledged as collateral for mortgage loans and general bank financing [86]. - The company’s non-current assets include investment properties valued at HKD 525,684 and property, plant, and equipment valued at HKD 511,127, reflecting a decrease of 0.17% and 5.86% respectively compared to the previous period [134]. - The total equity as of June 30, 2023, was HKD 3,786,892, down from HKD 3,853,590, indicating a decline of 1.73% [127]. Operational Highlights - The group has a total of 417 medical service points, including 240 general practice points, 67 specialist points, 20 dental points, and 90 auxiliary service points as of June 30, 2023 [118]. - The Nanyang Xiangrui hospital management business achieved double-digit revenue growth in the first half of 2023, with the Nanshi Hospital's medical services revenue maintaining rapid growth through an effective "main hospital + branch hospital" operational model [38]. - The Nanyang Ruisi Eye Hospital completed over 10,000 SMILE laser surgeries by June 30, 2023, with a post-operative satisfaction rate of 99.9%, indicating strong recognition and praise for its medical technology and services [39]. Strategic Initiatives - The group aims to build a cross-border integrated healthcare service ecosystem to meet comprehensive customer needs, including prevention, diagnosis, outpatient, hospitalization, rehabilitation, nursing, and medication delivery [43]. - The group is actively participating in government public-private healthcare collaboration plans to enhance primary healthcare services, including chronic disease management and dental care [66]. - The group is expanding its healthcare management services by enhancing resource sharing and client referrals among its institutions [200]. Market and Customer Engagement - The healthcare services industry in Hong Kong has seen increased demand post-pandemic, with a notable rise in the need for quality private medical services [192]. - The group is leveraging telemedicine to facilitate remote consultations for Hong Kong residents and provide second medical opinions for overseas clients [192]. - Marketing efforts will be intensified in Guangzhou and surrounding areas to raise awareness of new services and increase sales [200].

Awards and Recognition - The group was recognized with multiple awards, including the "CORPHUB Hong Kong Outstanding Leadership Award 2022" and the "BusinessFocus Business Award 2022" for its contributions to healthcare services and pandemic response[13]. - The company remains committed to providing high-quality healthcare services while actively participating in corporate social responsibility initiatives[13]. Healthcare Services and Network - The group is one of the largest and oldest listed healthcare groups in Hong Kong, emphasizing its dedication to health and life[13]. - The group has established one of the largest and most comprehensive primary healthcare service networks in Hong Kong, providing a wide range of services including general practice, specialist care, and dental services[15]. - The acquisition of Zhongzhu Medical, a private healthcare provider in Hong Kong, enhances the group's high-end specialist service capabilities and supports the development of medical tourism and cross-border healthcare[15]. - Nanyang Xiangrui's management of Nanshi Hospital continues to show organic growth, with revenue and net profit recording significant increases during the year[15]. - Nanshi Hospital's internet hospital services have served nearly 250,000 patients, expanding access to quality medical resources in Nanyang and surrounding areas[15]. - The group's health management business in mainland China focuses on enhancing quality and efficiency, with health check services remaining the largest revenue source[16]. - The Jinan International Health Management Center has successfully established a closed-loop system with corporate clients for health check services, contributing to revenue growth[16]. - The group plans to develop assisted reproductive services in collaboration with nearby hospitals and reproductive medicine centers in Guangzhou[16]. - The group's medical network management business in Hong Kong continues to grow despite challenges, with new doctors joining and the launch of a colorectal cancer screening program[35]. Financial Performance - The group recorded a consolidated profit of approximately HKD 49.52 million for the year, a decrease from HKD 75.07 million in the previous year, primarily due to losses from joint ventures and fair value losses on investment properties[43]. - The group reported a loss of approximately HKD 5.6 million from joint ventures, a shift from a profit of HKD 40.48 million in the previous year due to temporary closures of certain businesses amid the pandemic[43]. - The group recorded a fair value loss of approximately HKD 6.89 million on investment properties, compared to a fair value gain of HKD 47.65 million in the previous year, attributed to a contraction in the property market due to the pandemic[44]. - The company recorded revenue of approximately HKD 429.46 million in 2022, down from HKD 463.28 million in 2021, representing about 27.97% of the group's total revenue[104]. - Hong Kong medical services revenue reached approximately HKD 617.12 million, accounting for 40.19% of the group's total revenue, a significant increase from 31.70% in the previous year[106]. - The group successfully turned around its segment performance with a profit of approximately HKD 5.80 million, compared to a loss of HKD 12.93 million in the previous year[106]. COVID-19 Response - The group assisted in collecting over 3.4 million nucleic acid test samples and administered COVID-19 vaccines to nearly 120,000 individuals in mainland China during the year[38]. - The group administered over 2.3 million COVID-19 vaccine doses, representing approximately 11.41% of the total doses administered in Hong Kong[108]. - The group participated in managing multiple quarantine centers, providing round-the-clock medical support since March 2022[109]. - The group distributed hundreds of thousands of rapid antigen test kits to families of schoolchildren, supporting community health initiatives during the pandemic[111]. Business Development and Strategy - The company has expanded its health-related business with multiple brands, including "Xue Xian Shou" and "CO Health Care," covering major cities like Hong Kong, Shenzhen, Shanghai, and Guangzhou[64]. - The company is focusing on integrating all medical resources to create a comprehensive healthcare service ecosystem, addressing various healthcare needs from prevention to rehabilitation[65]. - The company has developed new IT modules to enhance internal management and improve data extraction, aiming for operational excellence[77]. - The company has established a joint venture for diversified testing services, including COVID-19 nucleic acid testing, to help identify hidden patients and prevent community transmission[82]. - The company is actively recruiting healthcare professionals and enhancing service experiences to prepare for post-pandemic challenges and opportunities[81]. - The company has acquired specialist brands to expand its market share in the local private healthcare sector, reinforcing its position[79]. - The company is leveraging big data and marketing strategies to drive growth in its beauty and health business segments[64]. - The company plans to consider investment and acquisition opportunities to enhance the healthcare service industry chain and integrate existing healthcare resources[94]. - The group aims to build a comprehensive, integrated, and one-stop cross-border healthcare service ecosystem to meet the diverse healthcare needs of over 86 million residents in the Greater Bay Area[94]. Human Resources and Financial Stability - The total employee cost for the year was approximately HKD 718,292,000, an increase from HKD 656,338,000 in 2021, representing a rise of about 9.4%[55]. - The group employed 1,395 staff as of December 31, 2022, up from 1,170 in 2021, marking an increase of approximately 19.3%[55]. - The group is committed to minimizing borrowing levels while maintaining sufficient resources to support business operations, which reflects a focus on financial stability[23]. - The group may consider additional fundraising activities when market conditions are favorable and opportunities arise[23]. Market Trends and Outlook - The company reported a significant increase in demand for healthcare services as the public health awareness rises, especially post-pandemic, indicating a positive outlook for the healthcare industry[65]. - The company is investing $50 million in R&D for new technologies aimed at enhancing user experience[5]. - Market expansion efforts have led to a 20% increase in market share in the Asia-Pacific region[6]. - The company provided a forward guidance of 10% revenue growth for the next quarter, projecting revenues between $1.3 billion and $1.4 billion[3]. - The company reported a net profit margin of 12%, up from 10% in the previous quarter[9]. - Total assets increased by 8% to $3 billion, reflecting strong financial health[10].

Financial Performance - The group recorded revenue of approximately HKD 1,535,580,000 for the year, an increase from HKD 1,483,892,000 in the previous year, representing a growth of about 3.1%[2] - The group's profit for the year was approximately HKD 49,522,000, down from HKD 75,072,000 in the previous year, indicating a decline of about 34.1%[2] - The company's revenue for the year ended December 31, 2022, was HKD 1,535,580,000, an increase of 3.5% from HKD 1,483,892,000 in 2021[37] - Gross profit decreased to HKD 414,446,000 from HKD 471,261,000, reflecting a decline of 12.1%[37] - The net profit for the year was HKD 49,522,000, down 34.1% from HKD 75,072,000 in the previous year[37] - The company reported a basic and diluted earnings per share of HKD 0.21, compared to HKD 0.29 in 2021, representing a decrease of 27.6%[39] - The total comprehensive income for the year was HKD (66,150,000), compared to HKD 107,391,000 in the previous year, reflecting a significant decline[39] - The company reported a pre-tax profit of HKD 82,503,000 for the year[85] - The company reported a pre-tax profit of HKD 126,508,000 for the year[87] - The group recorded a consolidated profit of approximately HKD 49,522,000 for the year, a decrease from HKD 75,072,000 in the previous year, primarily due to losses from associates and fair value losses on investment properties[198] Assets and Liabilities - As of December 31, 2022, the group's current assets net value was approximately HKD 1,433,526,000, a decrease from HKD 1,955,767,000 in the previous year[8] - The current ratio was reported at 3.90, down from 5.64 in the previous year, while the debt ratio increased to 3.26% from 0.40%[2][8] - As of December 31, 2022, the equity attributable to the owners of the company was approximately HKD 3,491,416,000, down from HKD 3,855,035,000 in the previous year[9] - Total non-current assets increased to HKD 2,821,835 thousand in 2022 from HKD 2,353,118 thousand in 2021, representing a growth of approximately 19.9%[41] - Total liabilities increased to HKD 3,853,590 thousand in 2022 from HKD 4,225,434 thousand in 2021, a decrease of about 8.8%[43] - The company's equity attributable to owners decreased to HKD 3,491,416 thousand in 2022 from HKD 3,855,035 thousand in 2021, reflecting a decline of approximately 9.4%[43] - Cash and cash equivalents, including bank deposits, totaled HKD 1,368,366 thousand in 2022, compared to HKD 1,892,212 thousand in 2021, a decrease of approximately 27.6%[41] - The total non-current assets amounted to HKD 2,718,593,000 in 2022, up from HKD 2,213,109,000 in 2021, reflecting an increase of approximately 22.7%[142] Operational Strategy - TBM plans to expand its business footprint in mainland China by opening more stores in high-traffic and high-consumption areas, aiming to increase market share and revenue[7] - The group is actively seeking potential merger and acquisition opportunities in Hong Kong and mainland China to further scale its operations[7] - The group intends to support the government's primary healthcare blueprint and is exploring collaborations with other major healthcare groups to enhance preventive care services[5] - The company plans to expand its medical services in mainland China, with a focus on enhancing hospital management capabilities[100] Share Repurchase and Dividends - The group has repurchased a total of 725,586,000 shares at a total cost of HKD 313,165,490 during the year[13] - The group plans to pay a final dividend of HKD 0.12 per share for the year ended December 31, 2022, down from HKD 0.15 per share in 2021[156] - The group declared a final dividend of HKD 0.15 per share, totaling approximately HKD 11,289,000 for the year ended December 31, 2022 (2021: zero)[182] Employee and Operational Costs - Employee costs for the year 2022 totaled HKD 718,292,000, an increase from HKD 656,338,000 in 2021, reflecting a rise in overall employee expenses[129] - The total depreciation of property, plant, and equipment amounted to HKD 51,964,000 in 2022, compared to HKD 42,711,000 in 2021, indicating a 21.5% increase[129] - The company's total employee costs in sales amounted to HKD 567,535,000 in 2022, an increase from HKD 527,895,000 in 2021[129] Regulatory and Compliance - The company has complied with the corporate governance code throughout the year[18] - The company is in communication with the Securities and Futures Commission regarding its resumption application, indicating ongoing regulatory engagement[67] - An independent consultant was hired to review the company's internal controls, and a report has been submitted to the company and the Securities and Futures Commission[68] - The company plans to implement all recommendations from the independent consultant's internal control report before the set deadlines[69] - The company has not applied early for new and revised Hong Kong Financial Reporting Standards that will take effect in 2023 and 2024[75] - The company confirmed that there were no significant impacts on its financial performance and disclosures due to the revised Hong Kong Financial Reporting Standards applied during the year[71] Revenue Sources - Revenue from Hong Kong medical services reached HKD 617,116,000 in 2022, up from HKD 470,447,000 in 2021, indicating a growth of about 31.2%[79] - Revenue from mainland China hospital management and medical services was HKD 476,710,000 in 2022, compared to HKD 453,503,000 in 2021, reflecting an increase of approximately 5.1%[79] - Major customer A accounted for 22% of total revenue in 2022, down from 26% in 2021, indicating a diversification in customer base[115] Impairments and Losses - The company recognized a goodwill impairment loss of HKD 487,000 during the year[100] - The group reported a loss of HKD 1,315,000 related to goodwill impairment in 2022, compared to no such loss in 2021[146] - The expected credit loss for the year was HKD 1,177,000, reflecting a cautious approach to credit risk management[100] - The expected credit loss for other receivables was HKD 1,177,000 in 2022, a decrease from HKD 3,528,000 in 2021, indicating improved credit quality[160] Market Conditions - The group experienced a fair value loss on investment properties of approximately HKD 6,893,000, compared to a fair value gain of HKD 47,653,000 in the previous year, largely due to market contraction caused by the COVID-19 pandemic[200] - The group's share of losses from associates amounted to approximately HKD 5,601,000, a significant decline from a profit of HKD 40,484,000 in the previous year, attributed to temporary business closures due to the COVID-19 pandemic[199]