2022-07-18-港交所-易生活控股_2022年报_178页_14mb

2022 Annual Report Summary

Core Content

Elife Holdings Limited (the "Company" or "Elife") is a diversified group primarily engaged in commodities trading, sales, marketing, and brand building of anti-epidemic, daily cleaning products, and licensed branded watches. The Group also aims to expand into the consumer products market, aligning with its business principle of "making life easier and benefiting people's livelihood" (易生活，惠民生).

The Group has three main business segments:

• Commodities Trading Business: Involves sourcing domestic and metal commodities for sale to retail channels or lower-tier agents in the PRC.
• Daily Cleaning and Anti-Epidemic Products Business: Launched a joint venture group in July 2020 with Mr. Zhu Qian, which owns the "易安生"/"E'ANSN" brand and has expanded into personal healthcare and protective products. The Group is also developing the North American market and increasing sales through online live delivery platforms.
• Licensed Branded Watches Business: Established in June 2020 as a joint venture, which became a wholly-owned subsidiary in October 2021. It has developed a new operation team to promote online sales and television shopping channels, with a wide range of operations from product design to logistics and after-sales services.

Key Financial Highlights (HK$ thousand)

Main Points of the Report

Chairman's Statement

• The Group faced significant challenges due to the ongoing pandemic and global economic changes.
• The Group's mission remains to provide "an easier life and a better livelihood" (易生活·惠民生), and it is committed to adapting to the new normal.
• The Group has shifted from simple processing to brand development and marketing, especially in the daily cleaning and anti-epidemic products sector.
• The Group is expanding into the consumer products market, focusing on natural health supplements and high-end health food and seasoning products.
• The Group is also exploring cooperation with international brands to build a strong brand network and increase sales through various online and offline channels.

Financial Performance

• The Group recorded a turnover of HK$152.6 million in 2022, a decrease of 44.7% compared to 2021, mainly due to a drop in the commodities trading business volume.
• The gross profit margin improved to 5.1% in 2022 from 3.4% in 2021, driven by higher demand for daily cleaning and anti-epidemic products.
• The Group incurred a loss of HK$40.84 million in 2022, an increase of 54.7% compared to 2021, mainly due to share-based payments and impairment losses.
• The Group's cash reserves decreased to HK$10.8 million in 2022 from HK$14.59 million in 2021, but the Group has sufficient liquidity to maintain operations.

Capital Structure and Financial Position

• The Group's capital structure is supported by financing activities, with a gearing ratio of 68.7% as of 31 March 2022.
• The Group has a net current asset of HK$36.56 million and a current ratio of 1.6, indicating a moderate liquidity position.
• The Group has no material contingent liabilities or asset pledges as of 31 March 2022.

Share Option and Award Schemes

• The 2010 share option scheme was terminated on 23 September 2021, with 103,697,000 options lapsing during the year.
• After the share consolidation, 48,572,000 share options remained outstanding.
• A new share award scheme was introduced in 2017, with 5,050,000 shares awarded to Mr. Zhang Shaoyan and 83,000,000 shares awarded to eight employees.
• Following the share consolidation, the Group awarded 13,000,000 shares to five connected participants and 600,000 shares to two other participants.

Risk Management

• The Group regularly monitors industry developments and risk factors to minimize adverse impacts.
• The Group has no formal foreign exchange hedging policy but monitors exchange rate exposure and may consider hedging when necessary.
• The Group has adopted a fair and merit-based employment policy, aiming to provide a stable working environment for employees.

Key Information

• Board Members: The Board includes executive directors Zhang Xiaobin (Chairman), Gao Feng (Vice-Chairman), and Chiu Sui Keung (CEO), as well as independent non-executive directors including Cheng Wing Keung, Raymond Lam, Wong Hoi Kuen, and Lam Lee G.
• Audit and Governance: The Audit Committee and Remuneration Committee are chaired by Raymond Lam and Cheng Wing Keung, respectively. The Group has a strong governance framework in place.
• Legal and Financial Advisors: The legal advisors are Loong & Yeung Solicitors, and the auditors are HLB Hodgson Impey Cheng Limited.
• Registered Office: Cricket Square, Grand Cayman, Cayman Islands.
• Main Office in Hong Kong: Unit 806, Level 8, Core D, Cyberport 3, 100 Cyberport Road.
• Principal Banker: Bank of China (Hong Kong) Limited.
• Share Registrar: Tricor Tengis Limited.
• Stock Code: 00223.

Strategic Developments

• The Group is focusing on enhancing its brand presence in the daily cleaning and anti-epidemic products sector.
• It is expanding its sales channels through online live delivery platforms and television shopping channels.
• The Group is exploring new opportunities in the consumer goods market, including natural health supplements and high-end health food products.
• The Group is also seeking to expand its licensed branded watches business by collaborating with international brands and increasing its online presence.