Gelonghui November 22|Modern Health Technology (00919.HK) announced that the company may have recorded a loss of not less than HK$20 million in the six months ending September 30, 2023, while a profit of about HK$41 million was recorded in the same period last year.
This result is mainly due to: i) Reduced revenue due to the suspension of our stores from January 7, 2022 to April 20, 2022, in line with Hong Kong's COVID-19 anti-epidemic measures. The suspension of operations drastically reduced the company's deferred revenue from January 7, 2022 to April 20, 2022. The accounting policy that the company has always formulated is to recognize deferred revenue from beauty packages that expire after one year as revenue. The suspension of operations led to a significant reduction in deferred revenue related to beauty packages recognized as period revenue, which had an adverse impact on performance during the period. ii) Government subsidies granted by the Hong Kong Government to provide financial support to businesses affected by the COVID-19 pandemic were reduced by approximately HK$23 million.