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 HK3,853,590thousand,withanetprofitofHK21,061 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 HK10,027thousand[189]BusinessExpansionandStrategy−ThegroupexpandeditsservicesbyintegratingtraditionalChinesemedicine(TCM)intoitshealthcarecenters,offeringservicessuchasacupuncture,cupping,andmassage[25]−Thecompany′sTBMbusinessplanstoexpandbyopeningnewstoresinHongKongandmainlandChina,andwillcontinuetoseekpotentialacquisitionopportunitiestoenhancescaleandprofitability[37]−Thecompanyplanstofurtherintegratemedicalresourcesandbuildacross−bordercomprehensivehealthcareserviceecosystemtomeetdiversecustomerneeds[79]−TheacquisitionanddevelopmentofhospitalsandmedicalinstitutionsinChina,withafocusonGuangdongProvince,arepartofthecompany′sexpansionstrategy[72]−ThecompanyaimstostrengthenitspresenceintheGreaterBayAreabyintegratingmedicalresourcesandpromotingcross−bordermedicaltourism[73]−Thecompanyiscommittedtobuildinganinternationalfirst−classmedicalgrouprootedinHongKong,servingtheGreaterBayArea,andconnectingwiththeglobalmarket[79]−ThegroupexpandeditsorthopedicservicesinTsuenWanandShaTindistricts,launchinganewsportsinjuryphysicaltherapysub−brand"ElitePhysiotherapyandSportsRehabilitation"[96]−ThegroupcompletedtheacquisitionofCentralMedical,acomprehensiveprivatemedicalserviceproviderinHongKong,inAugust2022[97]−Thecompany′shealthmanagementcentersinJinan,Guangzhou,andShenzhenresumednormaloperationspost−pandemic,withagrowingcustomerbase[107]−Thecompany′shospitalmanagementbusinessinNanyangcontinuestogrowrapidly,withplanstoexpandrehabilitationservicesanddevelopaninternethospital,aimingtoincreasepatientrevisitratesandenhanceprofitability[117]−Thecompany′shealthmanagementbusinessinGuangzhouwilllaunchaVIPreproductiveserviceincollaborationwithShenzhenclinics,alongwithnewserviceslikecardiopulmonaryexercisetestingandtraditionalChinesemedicineforsleepdisorders[119]−AsofJune30,2023,thecompanyoperates417medicalservicepoints,including240generalclinics,67specialtyclinics,20dentalclinics,and90auxiliaryservicepoints,withatotalof792medicalprofessionals[120]−VioexpandeditsmedicalnetworkbyaddingnewspecialistsandopenedanewmedicalcenterinShaTintomeetgrowingdemandforgeneralmedicalservices[123]−Thecompanyplanstoexpanditshigh−endspecialtymedicalservices,includingrecruitingspecialistsinrespiratory,orthopedics,andpsychiatrytomeetgrowingdemand[115]−NanshiHospitalsignedastrategiccooperationagreementwithShandongHezeLuxinHospitaltoestablishastroke−focusedmedicalalliance,markingitsfirststepoutsideHenanProvince[103]MarketandEconomicConditions−Thegroupbenefitedfromthepost−pandemiceconomicrecoveryinHongKong,withanincreaseinbothmainlandandinternationaltravelers,contributingtoaturnaroundfromalosstoaprofit[24]−ThecompanyexpectslocaldemandandinboundtourismtodriveHongKong′seconomicgrowthinthesecondhalfof2023,supportedbygovernmentpoliciesandpublic−privatehealthcarecollaboration[78]−Thecompanywillactivelyparticipateingovernment−ledpublic−privatehealthcarecollaborationprograms,focusingonchronicdiseasemanagementanddentalcare[81]CorporateGovernanceandCompliance−ThegroupdidnotrecommendaninterimdividendforthesixmonthsendedJune30,2023,consistentwiththepreviousyear[19]−Thecompany′sdirectorsandseniormanagementheldminimalinterestsinthecompany′ssharesorbonds,withXuCanjieholding4,000shares(0.0000654,118 thousand[189] - Fair value changes in equity instruments recorded a loss of HK19,685thousand[189]−Dividendspaidtonon−controllinginterestswereHK4,373 thousand[189]
