TATA Health reports significant loss, auditor disclaims opinion on financials

TATA Health International Holdings Limited announced a net loss of HK$36,046,000 for the year ended December 31, 2023, a notable decline from a profit of HK$1,599,000 in the previous year. Revenue for the Group increased to HK$207,542,000 in 2023 from HK$144,606,000 in 2022, primarily driven by a 43.8% increase in footwear business revenue to HK$203,336,000. However, gross profit margin decreased to 72.6% from 78.8%.

The company reported a loss before taxation of HK$35,420,000 in 2023, compared to a profit of HK$2,497,000 in 2022. This shift was largely attributed to a significant reduction in other net gains, which fell to HK$0.6m in 2023 from HK$33.1m in 2022, primarily due to the absence of gains from property disposals. Other business segments, including healthcare, online medical services, and financial services, contributed minimally to revenue and continued to experience stagnation or losses.

The independent auditors, HLB Hodgson Impey Cheng Limited, issued a disclaimer of opinion on the consolidated financial statements due to the inability to obtain sufficient audit evidence. This stemmed from the "Lost Records" of certain subsidiaries following the retirement of a former director, leading to uncertainties regarding assets, liabilities, and financial results. The Group's current liabilities exceeded current assets by HK$45,931,000 as of December 31, 2023, with total liabilities exceeding total assets by HK$16,172,000. Trading in the company's shares has been suspended since April 2, 2024.