China Health : Interim/Half-Year Report

CHINA HEALTH GROUP INC.

中國醫療集團有限公司

(Carrying on business in Hong Kong as "萬全醫療集團")

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 08225)

INTERIM REPORT 2021

FOR THE SIX MONTHS ENDED 30 JUNE 2021

CHARACTERISTIC OF THE GEM OF STOCK EXCHANGE OF HONG KONG

LIMITED (THE "STOCK EXCHANGE")

GEM has been positioned as a market designed to accommodate small and mid-size companies to which a high investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risk of investing in such companies and should make the decision to invest after due and careful consideration.

Given that the companies listed on GEM are generally small and mid-sized companies, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board and no assurance is given that there will be a liquid market in the securities traded on GEM.

The Hong Kong Exchanges and Clearing Limited and the Stock Exchange take no responsibility for the contents of this report, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this report.

This report, for which the directors (the ''Directors'') of China Health Group Inc. (the ''Company'') collectively and individually accept responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on GEM (the "GEM Listing Rules") of the Stock Exchange for the purpose of giving information with regard to the Company and its subsidiaries (together, the "Group"). The Directors, having made all reasonable enquires, confirm that, to the best of their knowledge and belief the information contained in this report is accurate and complete in all material respects and not misleading or deceptive; and there are no other matters the omission of which would make any statement herein or this report misleading.

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CHINA HEALTH GROUP INC.

中國醫療集團有限公司

(Carrying on business in Hong Kong as "萬全醫療集團")

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 08225)

FINANCIAL HIGHLIGHTS

1. The Group achieved a turnover of RMB48,093,000 for the six months ended 30 June 2021 (the
   "Period") representing an increase of approximately 14.44% compared with the corresponding period of 2020.
2. The Group achieved profit before taxation of about RMB27,977,000 for the six months ended 30 June 2021 representing an increase of approximately 9.56% compared with the corresponding period of 2020.
3. Basic earnings per share are approximately 2.33 cents for the six months ended 30 June 2021, representing an increase of approximately 4.95% compared with the corresponding period of 2020.
4. The Board does not recommend the payment of any interim dividends for the Period.

INTERIM RESULTS (UNAUDITED)

The board of Directors (the "Board") is here to present the condensed unaudited consolidated interim results of the Group for the six months ended 30 June 2021, together with the comparative condensed unaudited consolidated figures for the corresponding period in 2020.

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CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED)

For the six months ended 30 June 2021

			Unaudited			Unaudited
		Three months ended 30 June		Six months ended 30 June
		2021	2020	2021	2020
	Notes	RMB'000		RMB'000		RMB'000		RMB'000
Turnover	4	21,867	20,452	48,093	42,023
Cost of sales		(3,181)	(3,995)	(9,737)	(9,140)
Staff cost		(2,944)	(2,189)	(4,764)	(4,764)
Other income		185	44	253	63
Administrative	5
expenses
		(3,255)	(795)	(5,853)	(2,620)
Profit from
operations		12,672	13,517	27,992	25,562
Finance costs		1	(8)	(15)	(26)
Profit before
	12,673	13,509	27,977	25,536
taxation
Income tax	7	(2,669)	(2,035)	(4,789)	(3,489)
Profit for the
period		10,004	11,474	23,188	22,047
Attributable to:
owners of the
Company		10,004	11,474	23,188	22,047
Profit for the
period		10,004	11,474	23,188	22,047
Earnings per
share (cents)
- basic	6	1.01	1.16	2.33	2.22
- diluted	6	1.01	1.16	2.33	2.22

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)

As at 30 June 2021

Notes

Non-current assets

Property, plant and equipment

Current assets

Investments at fair value through profit or loss Contract costs

Trade and bills receivables9 Trade deposit paid

Prepayments and other receivables Cash and cash equivalents

Current liabilities

Trade payables, other payables and accrued charges

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Contract liabilities

Tax payable

Bank borrowings

Net current assets

Total assets less current liabilities

Net assets

Capital and reserves

Share capital

Reserves

Total equity

Unaudited	Audited
30 June 2021	31 Dec 2020
RMB'000	RMB'000
1,633	1,751
1,633	1,751
13,160	12,160
18,175	24,800
116,367	86,056
1,800	1,800
22,486	17,135
11,582	16,193
183,570	158,144
21,897	18,594
1,161	1,161
19,710	19,965
-	1,500
42,768	41,220
140,802	116,924
142,435	118,675
142,435	118,675
88,906	88,906

53,529	29,769
142,435	118,675

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CONDENSED CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)

For the six months ended 30 June 2021

		Unaudited
	Six months ended 30 June
	2021	2020
	RMB'000		RMB'000
Net cash (used in)/generated from operating activities	(2,344)	3,113
Net cash used in investing activities	(752)	(9,842)
Net cash used in financing activities	(1,515)		-
Net decrease in cash and cash equivalents	(4,611)	(6,729)
Cash and cash equivalents at beginning of the period	16,193		8,459
Cash and cash equivalents at end of the period	11,582	1,730

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