China Health Group Limited (China Health, 00673) has released a clarification of its results for the year ended 31 March 2026, updating selected financial figures and note disclosures. Key take-aways are:

1. Earnings Overview • Revenue edged up 5.52% year on year to HK$41.09 million (FY 2025: HK$38.94 million), led by the “distribution and service in medical equipment and consumables” segment, which delivered HK$34.25 million, or 83% of group sales. • Gross profit slipped 22.85% to HK$7.13 million as the cost-of-sales ratio climbed to 82.7% (FY 2025: 76.3%). • Operating loss narrowed 27.5% to HK$48.67 million; loss attributable to shareholders contracted to HK$47.93 million from HK$67.79 million, translating into a basic loss per share of HK4.96 cents (FY 2025: HK11.25 cents).

2. Expense and Impairment Dynamics • Administrative expenses were cut by 38.8% to HK$38.38 million, while selling & distribution costs more than halved to HK$2.93 million. • Net impairment loss on financial assets declined 36.2% to HK$11.25 million. • Provision for litigation expenses shrank markedly to HK$12.87 million (FY 2025: HK$35.62 million). • Other income fell sharply to HK$0.79 million (FY 2025: HK$16.69 million) after the prior-year HK$16.31 million one-off reversal of other payables.

3. Balance-Sheet Repair • Net current assets reached HK$22.84 million, reversing a HK$17.35 million deficit a year earlier, supported by a jump in cash and cash equivalents to HK$21.44 million (FY 2025: HK$1.05 million). • Total equity recovered to HK$60.84 million (FY 2025: HK$0.10 million), driven by an increase in share capital to HK$138.71 million and elimination of a HK$14.86 million contingent consideration liability. • The group reported no non-current lease liabilities at year-end (FY 2025: HK$0.43 million).

4. Cash Flow and Going Concern • Net cash used in operating activities stood at HK$85.50 million. Management highlighted a cash balance of HK$21.44 million and positive working-capital position as at 31 March 2026 in assessing the going-concern basis.

5. Segment Results • Medical equipment and consumables posted a marginal segment loss of HK0.59 million despite revenue growth. • Hospital operation and management services recorded a HK6.25 million segment loss amid revenue contraction to HK6.84 million (FY 2025: HK11.23 million). • Business service and functional-food segments generated no revenue in FY 2026.

6. Audit & Governance The Audit Committee reviewed the revised financials, and auditor Beijing Xinghua Caplegend CPA Limited agreed the figures to the audited statements; no assurance opinion was expressed on the preliminary announcement.

The clarified disclosure supersedes previous data points in the original annual results announcement; no other financial information has changed.