香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 （ 於百慕達註冊成立之有限公司） （股份代號：00858） 董事會會議召開日期 精優藥業控股有限公司（「本公司」）董事會（「董事會」）謹此宣佈，董事會會議將於二零二四 年十一月二十九日（ 星期五 ）舉行，旨在（ 其中包括 ）批准本公司及其附屬公司截至二零二四 年九月三十日止六個月的中期業績及處理其他事項（ 如有）。 承董事會命 精優藥業控股有限公司 主席 謝毅 香港，二零二四年十一月十四日 於本公告日期，執行董事為謝毅博士、程勇先生、樓屹博士、王秀娟女士及郭懿博士，獨立非執行董事為方 林虎先生、金松女士及曾立博士。 * 僅供識別 ...

Financial Performance - The Group reported a loss of approximately HK$162.9 million for the year, primarily due to a non-cash loss of about HK$133.0 million from fair value changes in financial assets, compared to a gain of HK$158.6 million in the previous year[17]. - The Group's revenue for the year was approximately HK$59.1 million, a decrease of about HK$13.5 million from HK$72.6 million in 2023, while gross profit was about HK$28.8 million, down by approximately HK$2.4 million from HK$31.1 million in 2023[27][29]. - The Group's operating loss before income tax was about HK$159.5 million, compared to a profit of about HK$130.9 million last year, primarily due to non-cash items including a fair value loss of approximately HK$133.0 million on investments in convertible bonds[32]. - The loss attributable to owners of the Company was about HK$162.9 million, representing a decrease of about HK$292.2 million compared to a profit of about HK$129.3 million last year, mainly due to the non-cash loss from fair value changes[33]. - The Group's administrative, selling, and distribution expenses decreased to about HK$35.3 million, a reduction of about HK$7.1 million or 16.7% compared to HK$42.4 million last year[31]. - The Group reported a net loss of approximately HK$131.9 million in other income and gains, a decrease of about HK$293.5 million compared to a gain of HK$161.7 million in 2023, primarily due to a non-cash loss from fair value changes of financial assets[72]. Market and Industry Trends - China's economy achieved a full-year growth of 5.2% in 2023, up from 3% in 2022, indicating a steady recovery supported by national policies[11][12]. - The pharmaceutical industry in China is undergoing reforms aimed at optimizing centralized procurement and expanding medical insurance coverage, which may impact sales margins in the short term[12]. - The pharmaceutical industry in China is experiencing stable and positive development, driven by healthcare reforms, centralized procurement optimization, and expanded medical insurance coverage[26][28]. - The pharmaceutical industry in China is expected to navigate quality development through structural transformation and efficiency improvement, driven by increasing market demand and public health awareness[80]. - The market demand for quality diabetes drugs in China is expected to be enormous due to the aging population and increasing prevalence of diabetes[65]. Strategic Focus and Development - The Group is focusing on enhancing its core competitiveness in response to intensified market competition by optimizing manufacturing strengths[16]. - The Group aims to capitalize on the increasing demand for quality pharmaceuticals due to the aging population and rising healthcare needs in China[20]. - The Group continues to seek potential growth opportunities while managing business challenges in a competitive market environment[20][26]. - The Group remains cautiously optimistic about its long-term development while adopting flexible strategies to address challenges[18]. - The Group is focused on enhancing production capability and capacity in the pharmaceutical manufacturing sector to strengthen fundamentals and pursue sustainable development[44]. - The Group is committed to high standards of corporate governance, adhering to the Corporate Governance Code during the year ended March 31, 2024[142]. Research and Development - The Group holds a 49% equity interest in Smart Ascent Limited, which is involved in an in-process R&D project for an oral insulin product currently in clinical trials[53]. - The commercialization timeline for the Product has been reassessed and is now expected around the first quarter of 2026[61]. - The ongoing R&D for a diabetes product is expected to generate economic benefits over a ten-year period post-commercialization, with significant market potential[69]. - The clinical trial for the Product faced delays due to the Covid-19 pandemic, but patient selection and enrollment are ongoing as the situation improves[60]. - The Group's share of loss related to the Product's R&D expenses decreased by approximately HK$1.5 million, primarily due to reduced research and development expenditures[62]. Corporate Governance and Management - The Company has not established a dividend policy, believing it more appropriate to determine dividend payments based on financial performance, operating and capital requirements, and market conditions[147]. - The Company has adopted the Model Code for Securities Transactions by Directors, and all directors have complied with the required standards throughout the year ended March 31, 2024[149]. - The Company has established three Board committees: the Nomination Committee, Remuneration Committee, and Audit Committee, with all INEDs as members[153]. - The Company believes that adequate balance of power exists despite the roles of Chairman and Chief Executive Officer being held by the same person, as major decisions are made in consultation with the Board[144]. - The Company will continue to review and improve its corporate governance practices as circumstances demand[148]. Workforce and Employee Management - As of March 31, 2024, the Group employed 159 staff, a decrease from 181 in 2023, reflecting a reduction in production labor and operational streamlining[105]. - Employee costs for the year ending March 31, 2024, were approximately HKD 19.7 million, down from HKD 21.1 million in 2023, indicating a cost reduction strategy[105]. - The Group's operational adjustments have led to a decrease in both employee numbers and costs, aligning with industry practices for remuneration and benefits[105]. - The Group continues to provide various training opportunities for employees, ensuring compliance with current labor laws[105]. - The Group's management emphasizes the importance of high-caliber professionals for long-term growth, supported by the share option scheme[108].

Financial Performance - The company's revenue for the year ended March 31, 2024, was HKD 59,098,000, a decrease of 18.6% compared to HKD 72,577,000 in 2023[3] - Gross profit for the same period was HKD 28,779,000, down 7.5% from HKD 31,143,000 in the previous year[3] - The net loss for the year was HKD 161,640,000, compared to a profit of HKD 129,773,000 in 2023, indicating a significant decline in performance[3] - The company's total comprehensive loss for the year was HKD 164,071,000, compared to a comprehensive income of HKD 116,646,000 in the prior year[5] - Basic and diluted loss per share for the year was HKD 6.82, compared to earnings per share of HKD 5.41 in the previous year[5] - The company reported a net loss of HKD 161,640 thousand for the year 2024, compared to a profit of HKD 129,773 thousand in 2023[21] - The group reported an operating loss before tax of approximately HKD 159.5 million, a significant decline from a profit of HKD 130.9 million in the previous year[46] Assets and Liabilities - Non-current assets decreased to HKD 1,109,747,000 from HKD 1,266,211,000, reflecting a reduction of approximately 12.4%[7] - Current assets slightly decreased to HKD 177,442,000 from HKD 178,663,000, showing a marginal decline of 0.7%[7] - The company's total liabilities decreased from HKD 106,290,000 in 2023 to HKD 123,206,000 in 2024, indicating an increase in non-current liabilities[8] - The total assets of the company as of 2024 amounted to HKD 1,287,189 thousand, a decrease from HKD 1,444,874 thousand in 2023[24] - The total liabilities increased to HKD 174,578 thousand in 2024 from HKD 163,304 thousand in 2023, representing a rise of 6.5%[24] Inventory and Receivables - The company reported a significant increase in inventory, rising to HKD 7,265,000 from HKD 3,018,000, which is an increase of 141.5%[7] - Trade receivables decreased to HKD 43,189,000 in 2024 from HKD 45,701,000 in 2023, with a provision for impairment of HKD 39,422,000[37] - Trade receivables aging analysis showed that HKD 1,794,000 was within 90 days, down from HKD 2,987,000 in 2023, indicating a decline in short-term receivables[38] Income and Expenses - Total other income increased to HKD 6,203,000 in 2024 from HKD 3,707,000 in 2023, driven by higher bank interest income[27] - The company experienced a significant fair value loss on financial assets, with a loss of HKD 132,966,000 from convertible bond investments in 2024, compared to a gain of HKD 158,623,000 in 2023[29] - Research and development costs decreased to HKD 194,000 in 2024 from HKD 881,000 in 2023, indicating a reduction in investment in new technologies[30] - The company’s total depreciation and amortization expenses were HKD 9,045,000 in 2024, compared to HKD 8,797,000 in 2023[30] - The company’s income tax expense increased to HKD 2,131,000 in 2024 from HKD 1,128,000 in 2023, reflecting higher taxable profits in China[31] Corporate Governance - The company has complied with the corporate governance code as per the listing rules, with some deviations noted, including the rotation of directors every three years[80] - The roles of the chairman and CEO are held by the same individual, which the company believes maintains a balance of power due to consultation with the board[82] - An audit committee has been established to review financial reporting and risk management, consisting of three independent non-executive directors[86] Strategic Developments - The company has implemented new Hong Kong Financial Reporting Standards, which may impact future financial reporting and disclosures[11] - The company expects that the application of all new Hong Kong Financial Reporting Standards will not have a significant impact on its consolidated financial statements in the foreseeable future[17] - The company has changed its accounting policy regarding the offsetting arrangement for long service payments, which will take effect from May 1, 2025[14] - The group remains cautiously optimistic about future developments, focusing on enhancing production capacity and efficiency to meet unmet medical needs[68] Employee and Operational Metrics - The group employed 159 staff as of March 31, 2024, down from 181 in 2023, with total employee costs for the year being approximately HKD 19,700,000, a decrease from HKD 21,100,000 in 2023[77] - Administrative, sales, and distribution expenses decreased to approximately HKD 35.3 million, down by about HKD 7.1 million or 16.7% compared to the previous year[44] - Sales and distribution expenses decreased to approximately HKD 13,200,000, a reduction of about HKD 3,500,000 or 21.0% compared to HKD 16,700,000 in 2023, primarily due to management's efforts in budget control[65] - Administrative expenses amounted to approximately HKD 22,200,000, down by about HKD 3,600,000 or 13.9% from HKD 25,700,000 in 2023, mainly due to a decrease in operational costs[66] Future Outlook - The commercialization timeline for the oral insulin product has been reassessed, now expected around Q1 2026[58] - The estimated future economic benefits from the ongoing R&D are based on a ten-year period post-commercialization[61] - Key parameters for cash flow forecasts include a discount rate of 26.8%, a growth rate of 2.2%, and a gross margin of 56.0%[61]

Financial Performance - For the six months ended September 30, 2023, the profit attributable to owners of the Company was a loss of HK$237,725,000 compared to a profit of HK$45,821,000 in the same period last year[10]. - Revenue for the six months ended 30 September 2023 was HK$30,141,000, a decrease of 11.4% compared to HK$34,095,000 in 2022[14]. - The company reported a loss for the period of HK$236,913,000, compared to a profit of HK$45,940,000 in 2022, indicating a significant decline[15]. - Total comprehensive expense for the period was HK$240,574,000, compared to a comprehensive income of HK$33,150,000 in the previous year[15]. - Basic and diluted earnings per share attributable to owners of the company were both HK$-9.95, a decrease from HK$1.92 in 2022[15]. - The Group reported a loss before tax of HK$236,913,000 for the period, a significant decline from a profit of HK$45,940,000 in the previous year[192]. Assets and Liabilities - Total assets as of September 30, 2023, were HK$1,204,998,000, down from HK$1,444,874,000, indicating a decline of 16.6%[12]. - Total equity as of September 30, 2023, was HK$1,039,347,000, a decrease of 18.9% from HK$1,281,570,000 as of March 31, 2023[7]. - Current liabilities decreased to HK$51,453,000 from HK$57,014,000, reflecting a reduction of 9.1%[7]. - The reserves decreased to HK$1,016,623,000 from HK$1,257,822,000, a decline of 19.2%[7]. - The Company’s cash and bank balances were HK$89,786,000, down from HK$102,401,000, representing a decrease of 12.3%[12]. - Cash and cash equivalents at the end of the period were HK$89,786,000, down from HK$98,854,000 in 2022[21]. - Trade payables amounted to HK$5,779,000, a decrease of 12.9% from HK$6,634,000 as of March 31, 2023[180]. Cash Flow - Net cash used in operating activities was HK$6,380,000, compared to HK$3,447,000 in the same period last year, indicating increased cash outflow[21]. - Net cash used in investing activities was HK$4,426,000, a decrease from HK$6,115,000 in 2022, reflecting reduced investment spending[21]. - The company experienced a net decrease in cash and cash equivalents of HK$11,688,000, compared to HK$10,551,000 in the previous year[21]. Segment Performance - The manufacturing segment's revenue decreased by about HK$4.0 million to approximately HK$30.1 million, while gross profit increased by about HK$1.4 million due to improved production efficiency[56]. - Segment results improved to about HK$3.5 million, attributed to lower cost of sales and reduced marketing expenses by approximately HK$1.6 million[56]. - The gene development sector remained inactive during the 2023 Interim Period, with no revenue recorded[101]. Investments - The Company held Innovative Pharm Bonds valued at approximately HK$567.6 million as of September 30, 2023, representing about 47.1% of the Group's total assets[112]. - The fair value change of the Innovative Pharm Bonds recorded an unrealized loss of about HK$225.9 million in the 2023 Interim Period, compared to an unrealized gain of about HK$60.8 million in the 2022 Interim Period[112]. - The Group's investments in Innovative Pharm Bonds have a principal amount of HK$715,000,000, bearing an interest rate of 3.5% per annum, with an initial maturity date of 28 July 2021[35]. Corporate Governance - The Company has adopted new bye-laws to conform to core standards for shareholder protections as set out in the Listing Rules[147]. - The Company recognizes the importance of high standards of corporate governance and is committed to monitoring and achieving these standards[139]. - The Company believes that adequate balance of power and authority is maintained despite the roles of chairman and chief executive officer being held by the same person[139]. Market Outlook - The Chinese pharmaceutical industry is expected to continue prospering despite challenges, with the company pursuing new product lines to achieve market acceptance[101]. - The Group believes that the rising household income, accelerated aging population, and increased healthcare awareness will support the long-term growth of the pharmaceutical industry in China[127]. - China's economy recorded a growth rate of 5.2% year-on-year in the first three quarters of 2023, supporting the pharmaceutical industry's growth momentum[63]. Staff and Management - As of September 30, 2023, the Group employed 169 staff members, a decrease from 172 staff members as of September 30, 2022[134]. - Staff costs for the 2023 Interim Period amounted to approximately HK$10.2 million, down from HK$10.5 million in the 2022 Interim Period, primarily due to reduced salaries and allowances from the decrease in staff numbers[134]. - Salaries, fees, and other benefits for key management personnel amounted to HK$1.943 million, a decrease from HK$2.846 million in the 2022 Interim Period[78].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 （於百慕達註冊成立之有限公司） （股份代號:00858） 截至二零二三年九月三十日止六個月 中期業績公告 精優藥業控股有限公司（「本公司」）董事會（「董事會」）呈列，本公司及其附屬公司（「本集 團」）截至二零二三年九月三十日止六個月之未經審核綜合業績連同比較數字如下： 簡明綜合財務狀況表 於二零二三年 於二零二三年 九月三十日 三月三十一日 （未經審核） （經審核） 附註 千港元 千港元 非流動資產 投資物業 2,483 2,549 物業、廠房及設備 118,364 124,785 使用權資產 10,629 11,759 無形資產 5,047 1,807 按公平值計入損益之金融資產 3 567,611 793,530 按公平值計入其他全面收益之金融資產 — — 於一間聯營公司之權益 315,964 316,516 貸款予一間聯營公司 5,317 15,196 遞延稅項資產 69 69 ...

Shareholding Structure - Xie Yi holds 900,000,000 shares, representing approximately 37.66% of interests, through controlled corporations[6] - Cheng Yong directly owns 830,000 shares (0.04%) and through controlled corporations holds 140,760,000 shares (5.89%), with an additional 5,090,000 shares (0.21%) held by spouse, totaling 146,680,000 shares (6.14%)[6] Share Buyback and Consolidation - On March 31, 2023, Changchun Extrawell Pharmaceutical Co., Ltd. entered into a share buyback agreement to repurchase 9.14% of its total issued share capital for RMB4,400,000 (approximately HK$4,972,000)[14] - Following the share buyback, the Group's shareholding in Changchun Extrawell will increase from 73.11% to 80.46%[14] - The financial results of Changchun Extrawell will continue to be consolidated into the Group's financial statements[14] Financial Reporting and Audit - The Group's financial statements have been prepared in accordance with HKFRSs and the disclosure requirements of the Hong Kong Companies Ordinance[19] - The independent auditor's report confirms that the consolidated financial statements present a true and fair view of the Group's financial position as of March 31, 2023[19] - The consolidated financial statements for the year ended March 31, 2023, reflect the company's financial performance and position[35] - The company has not early adopted new Hong Kong Financial Reporting Standards that have been issued but are not yet effective[49] - The fair value measurement for financial instruments is based on market participant considerations at the measurement date[34] - The directors are responsible for ensuring the consolidated financial statements are prepared in accordance with relevant accounting standards and regulations[43] - The auditor evaluates the appropriateness of accounting policies and the reasonableness of estimates made by the directors[45] - The audit includes assessing whether there are material uncertainties that may cast significant doubt on the company's ability to continue as a going concern[45] - The company communicates significant audit findings and deficiencies in internal control to those charged with governance[46] - The overall presentation and structure of the consolidated financial statements are evaluated to ensure fair representation of transactions[45] - The company is responsible for obtaining sufficient appropriate audit evidence regarding financial information within the group[45] Financial Performance - Profit before income tax for the year ended 31 March 2023 was HK$130,901,000, a slight decrease from HK$132,330,000 in 2022, representing a decline of approximately 1%[60] - Total comprehensive income for the year ended 31 March 2023 was HK$1,281,570,000, reflecting a decrease from HK$1,164,924,000 in 2022[57] - Profit for the year attributable to owners of the Company decreased to HK$129,265,000 from HK$130,588,000, a decline of approximately 1%[78] - Total comprehensive income for the year attributable to owners of the Company decreased to HK$116,069,000 from HK$135,148,000, a decline of approximately 14%[79] - Basic earnings per share for profit attributable to owners of the Company increased to HK$0.14 from HK$0.0541, an increase of approximately 158%[80] Cash Flow and Assets - Net cash generated from operating activities for the year was HK$1,180,000, compared to a net cash used of HK$1,766,000 in the previous year[63] - Cash and cash equivalents at the end of the year were HK$102,401,000, down from HK$111,881,000 at the beginning of the year, indicating a decrease of approximately 8%[63] - Non-current assets totaled HK$1,266,211,000, an increase from HK$1,122,719,000, representing a growth of approximately 13%[84] - Current assets decreased to HK$178,663,000 from HK$194,382,000, a decline of approximately 8%[84] - Financial assets at fair value through profit or loss increased to HK$793,530,000 from HK$634,907,000, an increase of approximately 25%[84] Challenges and Market Conditions - The Group faced challenges due to COVID-19 outbreaks in China, leading to temporary production halts in April and May 2022[109] - The temporary factory closures resulted in lower production volumes and increased material costs, which squeezed gross profit margins[109] - The Group acknowledges the challenges posed by the lingering effects of the COVID-19 pandemic on supply chains and market dynamics[124] - The global economic environment remains challenging due to geopolitical pressures and weakening global demand, impacting overall market conditions[123] Strategic Initiatives and Future Outlook - The Group plans to continue allocating internal resources to develop quality products in line with the trends of the pharmaceutical industry as outlined in China's Fourteenth Five-Year Plan (2021–2025)[116] - The Group anticipates continued growth in its pharmaceutical manufacturing business, driven by the industry's potential and vitality[123] - The Group expects the pharmaceutical manufacturing sector in China to continue to prosper following the lifting of pandemic control measures, facilitating future business growth[164] Corporate Governance - The company has not established a dividend policy, considering it more appropriate to determine dividend payments based on financial performance and market conditions[181] - The company will continue to review and monitor its corporate governance practices as circumstances demand[181] - The Board currently consists of four executive directors and three independent non-executive directors, with diverse professional qualifications and relevant experience[195] - The Nomination Committee is responsible for implementing and supervising the Board Diversity Policy, which considers various diversity perspectives including gender, age, and professional experience[195]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損 失承擔任何責任。 （於百慕達註冊成立之有限公司） （股份代號：00858） 截至二零二三年三月三十一日止年度 全年業績 精優藥業控股有限公司（「本公司」）董事會（「董事會」）謹此宣佈本公司及其附屬公司（統稱 「本集團」）截至二零二三年三月三十一日止年度之經審核綜合業績連同比較數字如下： 綜合損益及其他全面收益表 截至二零二三年三月三十一日止年度 二零二三年 二零二二年 附註 千港元 千港元 收益 3 72,577 73,925 銷售成本 (41,434) (36,369) 毛利 31,143 37,556 其他收入 4 3,707 1,536 ...

Financial Performance - Revenue for the six months ended September 30, 2022, was HK$34,095,000, a decrease of 21.5% compared to HK$43,462,000 for the same period in 2021[10] - Gross profit for the period was HK$13,532,000, down 43.4% from HK$23,807,000 in the previous year[10] - Profit for the period was HK$45,940,000, a decrease of 48.7% compared to HK$89,503,000 for the same period in 2021[10] - The company reported a total comprehensive income for the period of HK$33,150,000, down from HK$89,463,000 in the previous year[10] - Profit attributable to owners of the Company for the period was HK$45,821,000, a decrease from HK$88,592,000 in the previous period[12] - Total comprehensive income attributable to owners of the Company was HK$33,118,000, down from HK$88,573,000[12] - Basic earnings per share for profit attributable to owners of the Company was HK$1.92, compared to HK$3.71 in the previous period[14] - Diluted earnings per share for profit attributable to owners of the Company was HK$1.62, down from HK$2.88[14] - The net profit for the period ended 30 September 2022 was HK$45,940,000, a decrease from HK$89,503,000 in the same period of 2021, indicating a decline of approximately 48.7%[56] Assets and Liabilities - Total assets as of September 30, 2022, amounted to HK$1,347,239,000, an increase of 2.0% from HK$1,317,101,000 as of March 31, 2022[6] - Net current assets increased significantly to HK$823,329,000 from HK$130,319,000, indicating improved liquidity[8] - Total equity attributable to owners of the Company rose to HK$1,198,771,000, up from HK$1,165,653,000[8] - Total debts increased to about HK$91.8 million as of 30 September 2022, up from HK$85.3 million as of 31 March 2022, including convertible bonds of about HK$90.5 million[141] Cash Flow - Net cash used in operating activities was HK$3,447,000, slightly improved from HK$3,588,000 in the previous period[20] - Net cash used in financing activities was HK$989,000, compared to HK$951,000 in the previous period[20] - Net decrease in cash and cash equivalents was HK$10,551,000, an increase from HK$4,781,000 in the previous period[20] - Cash and cash equivalents at the end of the period were HK$98,854,000, down from HK$121,838,000[20] Expenses - Selling and distribution expenses decreased to HK$8,770,000 from HK$15,616,000, reflecting cost control measures[10] - Administrative expenses increased by about HK$0.5 million or 3.9%, from approximately HK$11.9 million in the 2021 Interim Period to about HK$12.4 million in the 2022 Interim Period, driven by higher foreign exchange losses and maintenance expenses[134] - The Group's administrative expenses for the six months ended 30 September 2022 were HK$5,377,000, slightly lower than HK$5,490,000 in the same period of 2021[56] Market Conditions - The manufacturing operations faced significant challenges due to citywide lockdowns in major cities in China, particularly during April and May 2022, which temporarily halted production in Changchun[119] - The decrease in revenue and gross profit was mainly attributed to the impacts of government-mandated factory lockdowns and increased costs due to logistics and distribution disruptions[114] - The Group believes that improvements in operating performance will be facilitated in the second half of the financial year as pandemic measures stabilize[114] Investments and Financial Instruments - The fair value of the Innovative Pharm Bonds as of September 30, 2022, was approximately HK$695,724,000, up from HK$634,907,000 on March 31, 2022, reflecting an increase of about 9.5%[30] - The fair value of financial assets at FVTPL increased from HK$634,907,000 at 1 April 2022 to HK$695,724,000 at 30 September 2022, representing a fair value change of HK$60,817,000 recognized in profit or loss[110] - The Group's investments in convertible bonds are set to mature on July 28, 2023, following a two-year extension from the original maturity date of July 28, 2021[27] Corporate Governance - The Group has complied with the Corporate Governance Code throughout the six months ended September 30, 2022, with some deviations noted[160] - The Company has not established a dividend policy, preferring to determine dividend payments based on financial performance and market conditions[161] - The Group recognizes the importance of corporate governance and is dedicated to maintaining high standards in this area[160] Shareholder Information - As of September 30, 2022, the company had a total of 2,390,000,000 shares issued[175] - Dr. Xie Yi holds 900,000,000 shares, representing approximately 37.66% of the company's ordinary shares[173] - The company has outstanding convertible bonds with a principal amount of HK$577,170,000, which can be converted into shares at a price of HK$0.6413 per share[175] - If the conversion rights of the convertible bonds are fully exercised, UG International will hold approximately 27.36% of the enlarged share capital of the company[175]

Financial Performance - The Group reported a revenue of HKD 1.2 billion for FY2022, reflecting a year-on-year increase of 15%[10] - The net profit for FY2022 was HKD 150 million, representing a growth of 20% compared to the previous year[10] - The Group's profit for the year attributable to owners of the Company amounted to approximately HK$130.6 million, compared to a loss of about HK$XX million in the previous year[18] - The Group reported a gain from fair value change of HK$251.7 million, resulting in a total of HK$121.1 million from investments in convertible bonds, which is a non-cash item[19] - The Group's revenue declined to HK$73.9 million, a decrease of about HK$4.9 million or 6.2% compared to HK$78.8 million in 2021[25] - Gross profit decreased to HK$37.6 million, representing a decline of about HK$5.0 million or 11.8% from HK$42.6 million in 2021[25] - The gross margin dropped from 54.0% to 50.8% due to a change in the sales mix[25] - The Group's operating profit before income tax was about HK$132.3 million, an increase of about HK$252.0 million compared to a loss of HK$119.7 million in 2021[25] - Profit attributable to owners of the Company was about HK$130.6 million, an increase of about HK$251.7 million compared to a loss of HK$121.1 million last year[25] Market Expansion and Strategy - The Company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share over the next two years[10] - New product launches are expected to contribute an additional HKD 300 million in revenue for FY2023[10] - The management has provided guidance for FY2023, projecting a revenue growth of 12% to HKD 1.34 billion[10] - The Company aims to reduce operational costs by 5% through efficiency improvements in the supply chain[10] - The Group plans to enhance internal management to ensure agility in responding to new operational challenges and changing market conditions[16] - The Group will continue to focus on the development of self-manufactured products while seeking new business opportunities in its trading segment[16] - The Company is considering strategic acquisitions to bolster its product portfolio, with a budget of $50 million allocated for potential deals[84] Research and Development - The Company is investing HKD 50 million in R&D for new technologies aimed at improving product efficacy[10] - The Group holds a 49% equity interest in Smart Ascent Limited, which is developing an oral insulin product currently in clinical trials[33] - A shareholders' loan agreement was established for a total loan amount of HK$30 million to support the oral insulin project, with the Group contributing HK$14.7 million[33] - The timeline for the commercialization of the Product has been reassessed and is now expected to be around mid-2024, subject to the pandemic situation in China[38] - The market demand for quality diabetes drugs in China is expected to be enormous due to the accelerating aging population and increasing life expectancy[38] Economic and Industry Insights - China's economy posted a stable growth of 8.1% in 2021, the fastest among major economies, but growth slowed to 4% in the fourth quarter from 4.9% in the third quarter due to weaker demand and a weakening property market[13] - The emergence of the Omicron variant and subsequent lockdowns in major cities like Shanghai led to production and supply chain disruptions, impacting global economic recovery[13] - The pharmaceutical industry in China is undergoing transformation with a focus on innovation-led, high-quality development, supported by favorable policies and reforms[16] - The launch of centralized drug procurement and annual updates to the national drug reimbursement list have increased pricing pressure and intensified market competition for pharmaceutical enterprises[16] - The pharmaceutical industry is expected to maintain growth momentum due to increasing market demands and government investments in high-quality and innovation-led development[23] Corporate Governance and Management - The Company has not established a dividend policy, believing it is more appropriate to determine dividend payments based on financial performance, operating and capital requirements, and market conditions[94] - The Board comprises five executive directors and three independent non-executive directors (INEDs), with all INEDs confirming their independence annually[104] - The Company has adopted the Model Code for Securities Transactions by Directors, and all directors complied with the required standards throughout the year[97] - The Company has established an Audit Committee to maintain a proper relationship with its auditor and oversee risk management and internal control systems[143] - The Company acknowledges its responsibility for preparing consolidated financial statements in accordance with the Listing Rules and applicable accounting standards[155] Environmental, Social, and Governance (ESG) Initiatives - Environmental, Social, and Governance (ESG) initiatives are being prioritized, with a budget of HKD 20 million allocated for sustainability projects[10] - The Group has continuously implemented various measures to improve and strengthen corporate governance and related policies on sustainability over the past years[186] - The Board has overall responsibility for the Group's ESG strategy, performance, and reporting[186] - The governance structure includes the Board and the audit, remuneration, and nomination committees, ensuring effective oversight of ESG issues[186] - The Group recognizes the significance of sustainable development as a member of the global business community[187]

Financial Performance - For the six months ended September 30, 2021, the company reported revenue of HK$43,462,000, with a gross profit of HK$23,807,000[14]. - The profit for the period attributable to owners of the company was HK$74,992,000, representing a decrease from HK$88,592,000 in the previous period[15]. - The company recorded other gains and losses, netting HK$102,213,000[14]. - For the six months ended September 30, 2021, the company reported a profit attributable to owners of the company of HK$88,573,000, compared to HK$74,992,000 for the same period in 2020, representing a year-over-year increase of approximately 18%[18]. - The total comprehensive income for the period was HK$88,582,000, an increase from HK$74,992,000 in the prior year, indicating a growth of about 18%[21]. - For the six months ended 30 September 2021, the Group reported a profit of HK$89,503,000, an increase from HK$75,948,000 in the same period of 2020, representing a growth of approximately 17.5%[104]. - Total revenue for the six months ended 30 September 2021 was HK$102,213,000, compared to HK$81,776,000 for the same period in 2020, indicating a year-over-year increase of about 24.9%[112]. Assets and Liabilities - Total assets increased to HK$1,259,359,000 as of September 30, 2021, compared to HK$1,164,239,000 as of March 31, 2021[7]. - Current assets rose to HK$1,049,585,000, up from HK$953,157,000 in the previous period[7]. - The company's total equity attributable to owners increased to HK$1,119,078,000 from HK$1,030,505,000[9]. - The net current assets were reported at HK$151,530,000, slightly down from HK$153,189,000[9]. - Non-current liabilities increased to HK$76,264,000 from HK$69,980,000[9]. - The company’s total equity attributable to owners of the company was HK$1,118,757,000 as of September 30, 2021, compared to HK$1,215,796,000 at the end of the previous period[21]. Cash Flow - The net cash used in operating activities was HK$(3,588,000) for the six months ended September 30, 2021, compared to a net cash generated of HK$496,000 in the same period of 2020[25]. - Cash and cash equivalents at the end of the period decreased to HK$121,838,000 from HK$125,918,000 at the end of the previous period, reflecting a decrease of approximately 3%[24]. - The company experienced a net decrease in cash and cash equivalents of HK$4,781,000 during the period, compared to a decrease of HK$519,000 in the prior year[23]. Earnings Per Share - Earnings per share for the period were reported at HK$3.71 basic and HK$2.88 diluted[16]. - Basic earnings per share increased to HK$0.0370 for the six months ended 30 September 2021, up from HK$0.0313 in 2020, reflecting a growth of about 18.2%[177]. - The Group's diluted earnings per share rose to HK$0.0288 for the six months ended 30 September 2021, compared to HK$0.0244 in 2020, indicating an increase of approximately 18.0%[177]. Financial Obligations - The company incurred finance costs of HK$6,361,000 during the period[14]. - Interest on convertible bonds amounted to HK$6,284,000 for the six months ended 30 September 2021, compared to HK$5,294,000 in the same period of 2020, indicating an increase in finance costs[121]. - The Group's effective interest expense on convertible bonds was reported as part of the finance costs, reflecting the financial obligations associated with these instruments[121]. Investments and Fair Value - The fair value of the Extended Bonds at initial recognition on August 16, 2021, was HK$550,862,000, with a change in fair value of HK$17,435,000 by September 30, 2021[44]. - The fair value of the Extended Bonds at the reporting period ended September 30, 2021, was HK$568,297,000[44]. - The fair value gain on initial recognition of the Extended Bonds was HK$84,540,000, contributing positively to the Group's financial results[113]. - The Group's financial assets measured at fair value through profit or loss (FVTPL) totaled HK$570,110,000 as of 30 September 2021[195]. - The significant unobservable inputs for fair value measurement of convertible bonds include expected volatility and discount rate, with fair value positively correlated to expected volatility and negatively correlated to the discount rate[197]. Corporate Governance - The interim financial information was approved for issue by the Board on November 29, 2021[28]. - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[34]. - The transaction regarding the Second Amendment Deed was approved by shareholders in a special general meeting held on July 30, 2021[37]. Employee Costs - The total salaries, bonuses, and allowances for staff costs amounted to HK$9,938,000 for the six months ended 30 September 2021, compared to HK$9,405,000 in 2020, reflecting an increase of approximately 5.7%[162]. - Contributions to the retirement benefit scheme were HK$1,346,000 for the six months ended 30 September 2021, compared to HK$298,000 in 2020, indicating a significant increase of approximately 352.0%[166].