("
Interim results for the six months ended
Chief Executive Officer's Statement
The nature of the Company's operations and its principal activities are to act as the holding company of a group engaged in (i) the provision of Traditional Chinese Medicine ("TCM") healthcare services, including consultations and TCM therapies, through a network of clinics in
This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.
Financial highlights
· Revenue for the six months ended
· Gross profit for the six months ended
· Loss for the six months ended
· The basic and diluted loss per share for the six months ended
· The Group's cash position as at
(a) Income statement items
The Group's sales performance improved significantly in the first six months of 2017 compared to the same period in 2016. The Group's revenue for the six months ended
The Group's administrative expenses for the six months ended
The Directors do not recommend the payment of a dividend in respect of the period.
(b) Balance sheet items
The Group's tangible fixed assets mainly comprised of leasehold improvements and office equipment, the amount decreased by
The Group's goodwill as at
The Group's inventories as at
Inventories mainly consisted of TCM and healthcare products purchased during in 2016 and 2017.
The Group's trade payables as at
The Group's cash and cash equivalents decreased by
Review of significant activities
The Group has, over the last few years, invested considerable time and expense in establishing itself and introducing the concept of TCM, medical products and healthcare to the wider public. The Board believes that the establishment of TCM Plus skincare products and haircare products will make a very substantial positive contribution to the Group's revenue and it has invested significantly in research and development of these products.
(a) Private Placings
During the first six months of 2017, the Group raised
(b) Update on the Significant distribution agreement
In
(c) Update on the Significant Endorsement Agreement and Commission Agreement
On
The proposed Chinese and English logos in respect of the Products have been confirmed by the Parties. The trademark was successfully registered in
Post balance sheet events
Private Placings
The Company entered into the following placing agreements with a placing price of 28.5p per share and the placings completed on
On
On
On
On
In addition, the Company entered into the following placing agreement and expected to be completed on or before
On
The proceeds from these placings will be used for general working capital purposes.
Outlook
TCM has become increasingly popular over the last few years, and its value either alongside or as a valid alternative to traditional western medicine increasingly recognised. The Company has, as a natural extension of its activities, expanded into skincare and haircare products applying TCM ingredients and it is actively promoting the TCM Fast-moving consumer goods ("FMCG") side of the business under the brand name of "TCM PLUS".
The TCM haircare product branding with
The Board is also looking at further means of promoting its products and is in negotiations in this respect
Our Board is at the same time actively exploring increases both in its outlets as well its channels for online and offline sales. It does anticipate a substantial increase in sales and profit over the coming years.
Finally, on behalf of the Board of Directors, I would like to extend our utmost appreciation to all our employees, partners, shareholders, customers, business associates and suppliers, for their continued support.
The Directors of the Company accept responsibility for the contents of this announcement.
Chief Executive Officer
For further information please contact:
ONG Ban Poh Michael - Chief Executive Officer Ronnie CHOI - Chief Financial Officer
|
Tel: +852 2110 4221
|
NEX Exchange Corporate Adviser PETERHOUSE CORPORATE FINANCE LIMITED |
Tel: +44 (0) 20 7469 0930 |
Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2017
|
|
The Group |
|
||||
|
|
Unaudited |
|
Unaudited |
|
Audited |
|
|
|
6 months ended 30 June 2017 |
|
6 months ended 30 June 2016 |
|
Year ended 31 |
|
|
|
HK$ |
|
HK$ |
|
HK$ |
|
From continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
7,222,843 |
|
4,933,206 |
|
10,889,218 |
|
Cost of sales |
|
(3,956,483) |
|
(2,336,883) |
|
(5,043,268) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
3,266,360 |
|
2,596,323 |
|
5,845,950 |
|
|
|
|
|
|
|
|
|
Other revenue |
|
127,422 |
|
124,191 |
|
323,161 |
|
Distribution costs |
|
(1,732,298) |
|
(129,048) |
|
(738,874) |
|
Administrative expenses |
|
(5,767,204) |
|
(6,668,751) |
|
(16,594,915) |
|
Foreign exchange gains/(losses), net |
|
(6,698) |
|
14,972 |
|
14,972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
(4,112,418) |
|
(4,062,313) |
|
(11,149,706) |
|
|
|
|
|
|
|
|
|
Impairment for intangible asset and goodwill |
|
- |
|
- |
|
(497,278) |
|
Finance costs |
|
- |
|
- |
|
158,086 |
|
Interest income |
|
- |
|
- |
|
57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before taxation |
|
(4,112,418) |
|
(4,062,313) |
|
(11,488,841) |
|
Taxation |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period/year |
|
(4,112,418) |
|
(4,062,313) |
|
(11,488,841) |
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive result for the period/year |
|
(4,112,418) |
|
(4,062,313) |
|
(11,488,841) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
Equity holders of the parent entity |
|
(4,112,418) |
|
(4,062,313) |
|
(11,488,841) |
|
Non-controlling interests |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,112,418) |
|
(4,062,313) |
|
(11,488,841) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share - from continuing operations (HK$) |
|
|
|
|
|
|
|
Basic and diluted |
|
(0.058) |
(0.059) |
|
(0.17) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share - from continuing operations
The calculation of basic loss per share is based on the consolidated loss attributable to the equity holders of the parent entity of
Consolidated Statement of Financial Position
As at 30
|
|
|
|
||||
|
|
Unaudited As at 30 June 2017 |
|
Unaudited As at 30 June 2016 |
|
Audited As at 31 December 2016 |
|
|
|
HK$ |
|
HK$ |
|
HK$ |
|
Assets |
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
Fixed assets |
|
1,292,558 |
|
2,327,182 |
|
1,987,803 |
|
Other intangible assets |
|
4,642,857 |
|
5,000,000 |
|
4,642,857 |
|
|
|
925,871 |
|
1,423,149 |
|
925,871 |
|
Deferred tax assets |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,861,286 |
|
8,750,331 |
|
7,556,531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
Inventories |
|
7,134,936 |
|
3,256,724 |
|
7,923,958 |
|
Trade receivables |
|
67,139 |
|
25,960 |
|
235,748 |
|
Other receivables and prepayments |
|
727,948 |
|
997,905 |
|
899,173 |
|
Cash and cash equivalents |
|
801,342 |
|
2,891,543 |
|
3,045,423 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,731,365 |
|
7,172,132 |
|
12,104,302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
15,592,651 |
|
15,922,463 |
|
19,660,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity and liabilities |
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
Share capital |
|
558,661 |
|
551,114 |
|
551,114 |
|
Share premium |
|
56,157,739 |
|
53,364,885 |
|
53,364,884 |
|
Retained earnings |
|
(54,256,278) |
|
(42,717,332) |
|
(50,143,860) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
2,460,122 |
|
11,198,667 |
|
3,772,138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Trade payables |
|
3,498,730 |
|
679,076 |
|
6,335,533 |
|
Other payables and accruals |
|
2,636,519 |
|
1,933,354 |
|
2,555,882 |
|
Amount due to directors |
|
2,111,366 |
|
2,111,366 |
|
2,111,366 |
|
|
|
|
|
|
|
|
|
|
|
8,246,615 |
|
4,723,796 |
|
11,002,781 |
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
Borrowings |
|
4,885,914 |
|
- |
|
4,885,914 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
13,132,529 |
|
4,723,796 |
|
15,888,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity and liabilities |
|
15,592,651 |
|
15,922,463 |
|
19,660,833 |
|
|
|
|
|
|
|
|
|
The Group's consolidated financial statements for the six months ended
The same accounting policies and methods of computation as included in the Group's consolidated financial statements for the year ended
For further information, please contact:-
ONG Ban Poh Michael - Chief Executive Officer CHOI Ronnie - Chief Financial Officer |
Tel: +852 2110 4221
|
|
|
NEX Exchange Corporate Adviser PETERHOUSE CORPORATE FINANCE LIMITED |
Tel: +44 (0)20 7469 0930 |
This information is provided by RNS