2023-07-27-港交所-易生活控股_2023年报_174页_1mb

2023 Annual Report Summary

Core Content

Elife Holdings Limited is a diversified group primarily engaged in commodities trading, daily cleaning and anti-epidemic products, and licensed branded watches businesses. The group is expanding into the consumer products market, including health food, supplements, and food additives, under the principle of delivering "an easier life, greater health and better livelihood."

Main Businesses

• Commodities Trading Business: The group focuses on sourcing and trading domestic quality products and metals commodities, mainly for sale to retail channels and lower-tier agents in the PRC.
• Daily Cleaning and Anti-Epidemic Products Business: Established through a joint venture with Mr. Zhu Qian in July 2020, the group owns the brand "易安生"/"E'ANSN" and has a supply chain covering product formula, design, and packaging. The business is active in both the PRC and overseas.
• Licensed Branded Watches Business: Operated through its wholly-owned subsidiary Shenzhen Aishang e-buy Technology Co., Ltd., which has expanded its presence on national television shopping channels and is preparing for online platforms like TikTok.

Key Personnel

• Executive Directors: Zhang Xiaobin (Chairman), Gao Feng (Vice-Chairman), Chiu Sui Keung (CEO), Qin Jiali, Zhang Shaoyan (appointed on 1 July 2023)
• Independent Non-Executive Directors: Cheng Wing Keung, Raymond, Lam Williamson, Wong Hoi Kuen, Lam Lee G.
• Committees:
  • Audit Committee: Lam Williamson (Chairman), Cheng Wing Keung, Raymond, Wong Hoi Kuen
  • Remuneration Committee: Lam Williamson (Chairman), Cheng Wing Keung, Raymond, Chiu Sui Keung
  • Nomination Committee: Cheng Wing Keung, Raymond (Chairman), Lam Williamson, Wong Hoi Kuen
• Company Secretary: Chow Chi Fai
• Registered Office: Cricket Square, Hutchins Drive, P.O.Box 2681, Grand Cayman KY1-1111, Cayman Islands
• Principal Place of Business in Hong Kong: Unit 806, Level 8, Core D, Cyberport 3, 100 Cyberport Road
• Principal Banker: Bank of China (Hong Kong) Limited
• Auditors: HLB Hodgson Impey Cheng Limited, Certified Public Accountants, 31/F., Gloucester Tower, The Landmark, 11 Pedder Street, Central, Hong Kong
• Share Registrar: Tricor Tengis Limited, 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong
• Legal Advisers: Loong & Yeung Solicitors, Room 1603, 16/F, China Building, 29 Queen's Road Central, Central, Hong Kong
• Stock Code: 00223

Financial Highlights

Financial Position

• Total Assets: 78,150,000 HK$
• Cash Reserves: 2,283,000 HK$
• Total Bank Borrowings: 14,590,000 HK$
• Net Cash Reserves: 25,612,000 HK$
• Shareholders' Funds: 101,344,000 HK$
• Net Current Assets: 34,715,000 HK$
• Current Assets: 73,638,000 HK$
• Current Liabilities: 38,923,000 HK$
• Current Ratio: 1.9 times
• Assets-Liabilities Ratio: 0.7 times
• Gearing Ratio: 109.0%

Operating Performance

• Revenue: Increased by 56.5% to HK$238,840,000
• Cost of Sales: Increased by 63.7% to HK$236,973,000
• Gross Profit: Decreased to HK$1,867,000 (from HK$7,849,000 in 2022)
• Gross Profit Margin: Dropped to 0.8% (from 5.1% in 2022)
• Selling Expenses: Increased to HK$1,898,000 (from HK$832,000 in 2022)
• Other Operating Expenses: Decreased by 2.3% to HK$23,452,000
• Equity-Settled Share-Based Payment: Decreased to HK$697,000 (from HK$12,684,000 in 2022)
• Net Impairment Losses: Decreased to HK$442,000 (from HK$14,889,000 in 2022)
• Impairment Loss on PPE and Right-of-Use Assets: HK$13,000 and HK$586,000 respectively (Nil in 2022)

Financial Review

• Net Cash Used in Operating Activities: HK$16,398,000
• Net Cash Used in Investing Activities: HK$41,000
• Net Cash Generated in Financing Activities: HK$8,018,000
• Available Cash and Cash Balances: HK$2,283,000 (down from HK$10,807,000 in 2022)

Capital Structure

• May 2022 Placing: 74,160,000 shares placed at HK$0.103, net proceeds of HK$7,300,000 used for working capital and business development.
• December 2022 Placing: 150,520,000 shares placed at HK$0.103, net proceeds of HK$14,578,000 allocated to HK$8,000,000 for working capital and HK$6,578,000 for business development.

Risk Factors and Uncertainties

• The group regularly monitors industry developments and risk factors.
• No significant foreign exchange risk due to most transactions being in HK$ and RMB.
• No foreign currency hedging policy currently in place.
• No material contingent liabilities or asset pledges as of 31 March 2023.

Dividend Policy

• No final dividend recommendation for the year ended 31 March 2023.

Employees and Remuneration

• Total employees in Hong Kong and PRC: 44 (down from 45 in 2022)
• Employees are remunerated based on performance, experience, and industry standards
• The group participates in retirement benefit schemes
• Share option and share award schemes are in place for eligible participants (details in Note 33)