Meilleure Health International Industry Group Limited (Stock Code: 2327)
2025 Annual Report – Key Highlights for Investors

1. Financial Performance and Capital Structure

• Net Profit Growth: The Group reported a profit attributable to owners of the Company of HK\$37.98 million for the year ended 31 December 2025, up from HK\$32.48 million in 2024, reflecting robust growth in profitability.
• Net Current Assets: As of 31 December 2025, the Group maintained net current assets of approximately HK\$654.2 million, underscoring a strong liquidity position.
• Gearing Ratio: The gearing ratio increased to 26.4% in 2025 from 21.6% in 2024, indicating a moderate rise in leverage, mainly due to higher net debt of HK\$447.1 million (2024: HK\$331.1 million).
• Dividend: The Board recommended a final dividend of HK0.4 cents per share, the same as in 2024, subject to shareholder approval at the 2026 AGM. The dividend is scheduled to be paid on 28 August 2026 to shareholders on record as of 5 August 2026.
• Share Buyback: The Company repurchased 29,706,000 shares during the year at a total cost of HK\$8.85 million, which may enhance net asset value per share and earnings per share going forward.

2. Strategic Developments and Business Prospects

• Healthcare Sector Focus: The Group remains committed to its core business in healthcare, with ongoing refinement of its skin health management products, expansion of sales channels, and strengthening of brand reputation and channel networks.
• Overseas Expansion: The Group’s overseas operations, especially in Europe under the “AlpReleaf” brand, continue to expand, broadening distribution channels and enhancing brand development.
• Investment Strategies: The Group actively seeks stable cash flow and high-growth opportunities in the healthcare sector and manages a diversified investment portfolio to maximize returns.
• Material Lending Transactions: The Group provided short-term and long-term interest-bearing loans to customers and a related party, with strict credit risk management and internal controls, including due diligence, ongoing monitoring, and legal recourse in event of default.
• Significant Post-Period Event: On 8 January 2026, the Company entered an equity transfer agreement to acquire the entire equity interest in Jiangsu Yide Investment Company Limited for RMB124.77 million. Completion is subject to shareholder approval at the 2026 SGM scheduled for 21 April 2026. This acquisition could be materially price-sensitive as it involves a substantial expansion of the Group’s investment portfolio and future earnings potential.

3. Corporate Governance, Risk Management, and Compliance

• Corporate Governance: The Board confirms full compliance with the Corporate Governance Code. Four committees (Audit, Nomination, Remuneration, Strategic) are actively overseeing key operations.
• Risk Management and Internal Controls: The Group engages external professionals for annual review of internal controls and risk management systems. No material deficiencies were reported in 2025.
• ESG Commitment: A separate ESG Report is available, reflecting the Group’s ongoing focus on environmental sustainability and social governance.
• Legal Proceedings: As at 31 December 2025, the Group was not involved in any material litigation or claims, reducing legal risk exposure.
• Compliance: The Group’s operations in the PRC, Hong Kong, Australia, and Switzerland complied with all relevant laws and regulations in 2025.

4. Shareholder Information and Upcoming Actions

• 2026 AGM and SGM: The 2026 AGM will be held on 26 June 2026, and the SGM on 21 April 2026 will consider the major Jiangsu Yide acquisition and the adoption of a new share award scheme.
• Register Closure: The register of members will be closed for dividend and AGM entitlement; deadlines for share transfers are specified for eligibility.
• Share Option Scheme: The 2019 Share Option Scheme remains in force, with detailed vesting schedules and performance targets. No equity-linked agreements other than this scheme were entered in 2025.
• Major Customers and Suppliers: The five largest customers accounted for 42% of total sales, while the five largest suppliers accounted for 70% of total purchases, reflecting customer and supplier concentration risks.

5. Auditor’s Opinion

• Unqualified Audit Opinion: The independent auditor, ZHONGHUI ANDA CPA Limited, issued an unqualified opinion, confirming the consolidated financial statements give a true and fair view of the Group’s financial position as at 31 December 2025.
• Key Audit Matters: Areas of focus included the valuation of investment properties, net realizable value of properties held for sale under development, and the impairment assessment for loan and interest receivables. All were found to be supported by available evidence.

6. Risks and Other Noteworthy Items

• Key Risks: The Group is exposed to macroeconomic, legal, regulatory, reputational, and financial risks. There is also concentration risk due to reliance on several major customers and suppliers.
• Credit Risk Management: The Group has implemented robust credit risk assessment and post-loan monitoring procedures for its lending business, including legal actions for debt recovery if necessary.
• Currency and Interest Rate Risks: The Group is exposed to foreign exchange and interest rate fluctuations, with sensitivity analysis provided in the full report. Capital management is ongoing to maintain an optimal structure.

7. Important Shareholder Actions and Deadlines

• Final Dividend: Shareholders wishing to receive the final dividend must be on the register by 5 August 2026; relevant share transfers must be lodged by 3 August 2026.
• Upcoming Share Award Scheme: A new 2026 Share Award Scheme is proposed for adoption at the 2026 SGM, potentially impacting share dilution and employee incentives.

Potential Share Price Sensitive Items

• Major Acquisition: The proposed acquisition of Jiangsu Yide Investment Company Limited for RMB124.77 million is potentially significant and may affect future earnings. Shareholder approval will be sought at the upcoming SGM.
• Share Repurchases: The repurchase of 29.7 million shares could positively impact share value by reducing supply and enhancing per-share metrics.
• Continued Profit Growth and Stable Dividend: The sustained profitability and dividend consistency may support positive investor sentiment.

Disclaimer

This article is prepared for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any securities. Investors should conduct their own due diligence and consult professional advisors before making any investment decisions. The article summarizes data and events from Meilleure Health International Industry Group Limited’s 2025 Annual Report as publicly disclosed.

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