Medicskin : Financial Statements/ESG Information - FIRST QUARTERLY REPORT 2017/2018

FIRST QUARTERLY REPORT 2017/2018 CHARACTERISTICS OF THE GROWTH ENTERPRISE MARKET ("GEM") OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors. Given the emerging nature of companies listed on GEM, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM.

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 Medicskin Holdings Limited (the "Company") collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on the GEM of the Stock Exchange (the "GEM Listing Rules") for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, 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.

UNAUDITED FIRST QUARTERLY RESULTS‌

The board of directors (the "Board") of the Company is pleased to report the unaudited consolidated results of the Company and its subsidiaries (collectively referred to as the "Group") for the three months ended 30 June 2017 together with the comparative unaudited figures for the corresponding period of last year as follows:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the three months ended 30 June 2017

Three months ended 30 June
2017	2016
Notes	HK$'000	HK$'000
(unaudited)	(unaudited)
Revenue	2	14,997	14,151
Other income, gains and losses	268	15
Inventories used	(1,972)	(1,693)
Staff costs	(7,293)	(7,222)
Depreciation of property, plant and equipment	(1,082)	(570)
Other expenses	(3,879)	(3,864)
Profit before tax	1,039	817
Income tax expense	3	(330)	(103)
Profit and total comprehensive income for the period attributable to owners of the Company	709	714
Earnings per share, basic (HK cent)	5	0.15	0.18
Earnings per share, diluted (HK cent)	5	0.15	0.18

01 Medicskin Holdings Limited

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the three months ended 30 June 2017

Attributable to owners of the Company
Share capital	Share premium	Capital reserve	Share options reserve	Retained profits	Total
HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000
(note)
At 1 April 2017 (audited)	4,804	72,463	1,181	294	3,856	82,598
Profit and total comprehensive income for the period	-	-	-	-	709	709
Recognition of equity-settled share-based payments	-	-	251	-	-	251
At 30 June 2017 (unaudited)	4,804	72,463	1,432	294	4,565	83,558
At 1 April 2016 (audited)	4,000	31,670	182	228	1,688	37,768
Profit and total comprehensive income for the period	-	-	-	-	714	714
Recognition of equity-settled share-based payments	-	-	249	92	-	341
At 30 June 2016 (unaudited)	4,000	31,670	431	320	2,402	38,823

Note: Capital reserve represents deemed contribution from the controlling shareholder (i.e. Dr. Kong Kwok Leung ("Dr. Kong")) arising from the share reward granted to a medical practitioner of the Group by Dr. Kong for the services rendered to the Group. The fair value of services received, which is determined by reference to the fair value of the share reward at the grant date, is expensed on a straight-line basis over the vesting period, with a corresponding increase in capital reserve.

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