Financial Performance - For the six months ended June 30, 2023, the company reported revenue of approximately RMB 639.5 million, an increase of 15.2% compared to RMB 555.2 million for the same period in 2022[11]. - Gross profit for the same period was RMB 504.8 million, reflecting a growth of 14.3% from RMB 441.6 million year-on-year[9]. - The net profit attributable to the company's owners was approximately RMB 220.2 million, up 2.5% from RMB 214.8 million in the previous year[11]. - Operating profit for the six months ended June 30, 2023, was approximately RMB 255.2 million, an increase of about 7.3% from RMB 237.9 million in the same period of 2022[20]. - The company reported a profit for the period of RMB 214,784 thousand, compared to a profit of RMB 220,164 thousand for the same period in 2022, showing a decline of about 2.2%[101]. - The company’s total comprehensive income for the period was RMB 211,081 thousand, slightly lower than RMB 214,596 thousand in the previous year, reflecting a decrease of approximately 1.9%[101]. Revenue Breakdown - Revenue from the structural heart disease business was approximately RMB 243.9 million, up about 25.1% from RMB 194.9 million in the same period of 2022[15]. - Revenue from the peripheral vascular business was approximately RMB 362.7 million, an increase of about 14.6% from RMB 316.6 million in the same period of 2022[16]. - The company’s sales in mainland China accounted for approximately 80.4% of total revenue, down from 83.2% in the previous year[11]. - The company’s overseas sales grew by 34.4%, indicating successful market expansion efforts[11]. Assets and Liabilities - The company's total assets increased by 10.6% to RMB 4,081.9 million, compared to RMB 3,690.1 million as of December 31, 2022[9]. - The total current assets as of June 30, 2023, were approximately RMB 1,934.5 million, an increase from approximately RMB 1,396.7 million as of December 31, 2022[26]. - The current liabilities totaled approximately RMB 634.8 million as of June 30, 2023, compared to approximately RMB 584.7 million as of December 31, 2022[26]. - The total liabilities as of June 30, 2023, were RMB 825,471 thousand, compared to RMB 769,046 thousand as of December 31, 2022, reflecting an increase of about 7.3%[110]. Research and Development - R&D expenses increased by approximately 10.3% to about RMB 110.6 million, with total R&D costs rising to approximately RMB 161.9 million, an increase of about 9.5%[19]. - The company aims to enhance its innovation and R&D capabilities to maintain industry leadership and expand global market share[43]. Investments and Financing - The company invested RMB 10.0 million in a private equity fund managed by Fuxin Capital, with a fair value of approximately RMB 10.1 million as of June 30, 2023, accounting for about 0.2% of total assets[21]. - The company agreed to invest USD 20.0 million (approximately RMB 144.4 million) in Ally Bridge Group Global Life Science Capital Partners V, with a fair value of approximately RMB 104.8 million as of June 30, 2023, representing about 2.6% of total assets[21]. - The company reported a net cash inflow from operating activities of RMB 223,128 thousand, compared to RMB 244,159 thousand for the same period in 2022, reflecting a decrease of approximately 8.6%[100]. Employee and Management - As of June 30, 2023, the group employed 1,391 full-time employees, an increase from 1,299 as of December 31, 2022[37]. - Total employee costs for the six months ended June 30, 2023, amounted to approximately RMB 182.8 million, compared to RMB 151.7 million for the same period in 2022[37]. - The total remuneration for key management personnel amounted to RMB 9,434,000 in 2023, up from RMB 7,660,000 in 2022, reflecting a growth of approximately 23.1%[167]. Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange and confirmed compliance for the six months ending June 30, 2023, with a noted deviation regarding the roles of Chairman and CEO being held by the same individual[44]. - The board consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors, ensuring at least one independent director has appropriate professional qualifications[45]. - The company has confirmed that all board members complied with the securities trading standard code during the six months ending June 30, 2023[46]. Stock Options and Share Awards - The new stock option plan, effective from September 17, 2021, allows for the issuance of up to 462,929,240 shares, which is capped at 10% of the company's issued share capital as of that date[57]. - As of June 30, 2023, a total of 128,750,000 stock options were granted but not exercised under the stock option plan[66]. - The company has adopted the 2019 Share Award Scheme and the 2022 Share Award Scheme, which do not require shareholder approval[72]. - The maximum number of shares that can be awarded under the 2022 Share Award Plan is capped at 463,003,040 shares, which is 10% of the total issued shares as of March 3, 2022[82]. Government Grants and Subsidies - The company received government grants of RMB 11,720 thousand related to the acquisition of property and equipment, slightly lower than RMB 12,650 thousand received in the previous year[100]. - The company confirmed revenue from government grants of approximately RMB 8,971,000 for the six months ended June 30, 2023, up from RMB 7,050,000 in the same period of 2022[134]. Market Outlook - The company anticipates an upward trend in market demand for its products due to aging population and increased health awareness[35].

Financial Performance - For the six months ended June 30, 2023, the revenue was approximately RMB 639.5 million, an increase of about 15.2% compared to RMB 555.2 million for the same period in 2022[2]. - The gross profit for the same period was approximately RMB 504.8 million, representing a growth of about 14.3% from RMB 441.6 million in the previous year[2]. - The net profit attributable to the owners of the company was approximately RMB 220.2 million, an increase of about 2.5% from RMB 214.8 million in the same period of 2022[2]. - The operating profit for the six months ended June 30, 2023, was RMB 255.2 million, compared to RMB 237.9 million for the same period in 2022[4]. - The company reported a pre-tax profit of RMB 256,421 thousand for the six months ended June 30, 2023, compared to RMB 240,620 thousand for the same period in 2022, marking an increase of approximately 6.6%[12][13]. - The company reported other income and gains of RMB 54,980 thousand for the first half of 2023, compared to RMB 49,823 thousand for the same period in 2022, indicating a growth of about 4.3%[12][13]. - The company's pre-tax profit for the six months ended June 30, 2023, was RMB 182,781,000, compared to RMB 151,724,000 in 2022, reflecting a growth of 20.5%[17]. - Basic and diluted earnings per share for the six months ended June 30, 2023, were RMB 220,164,000, compared to RMB 214,784,000 in 2022, showing a slight increase of 2.1%[21]. Assets and Liabilities - The total assets less current liabilities amounted to RMB 3,447.1 million as of June 30, 2023, compared to RMB 3,105.4 million at the end of 2022[6]. - Non-current assets increased to RMB 2,147.4 million as of June 30, 2023, from RMB 2,293.4 million at the end of 2022[5]. - The company reported cash and cash equivalents of RMB 775.1 million as of June 30, 2023, down from RMB 833.8 million at the end of 2022[5]. - The net assets of the company increased to RMB 3,256.4 million as of June 30, 2023, compared to RMB 2,921.1 million at the end of 2022[6]. - Total assets as of June 30, 2023, reached RMB 4,081,898 thousand, an increase from RMB 3,690,103 thousand as of December 31, 2022, indicating a growth of approximately 10.6%[14]. - The total liabilities as of June 30, 2023, were RMB 825,471 thousand, compared to RMB 769,046 thousand as of December 31, 2022, reflecting an increase of about 7.3%[15]. - As of June 30, 2023, the total current assets of the group were approximately RMB 1,934.5 million, an increase of about 38.4% from RMB 1,396.7 million as of December 31, 2022[56]. - The total current liabilities as of June 30, 2023, were approximately RMB 634.8 million, up from RMB 584.7 million as of December 31, 2022, representing an increase of about 8.9%[56]. Research and Development - Research and development expenses for the first half of 2023 amounted to RMB 110,607 thousand, slightly increasing from RMB 100,261 thousand in the same period of 2022, reflecting a focus on innovation and product development[12][13]. - The company submitted 82 patent applications and successfully obtained 91 patents during the six months ended June 30, 2023, bringing the total number of effective patent applications to 1,904, with 842 patents approved[39]. - The company continues to enhance its innovation capabilities and accelerate product development to maintain its industry-leading position[38]. - R&D expenses increased by approximately 10.3% to about RMB 110.6 million for the six months ended June 30, 2023, compared to approximately RMB 100.3 million for the same period in 2022[47]. Market and Sales - Revenue from the domestic market accounted for approximately 80.4% of total revenue, while overseas markets contributed approximately 19.6%, with Asia (excluding mainland China) and Europe accounting for about 8.5% and 7.5% respectively[36]. - Revenue from the structural heart disease business was approximately RMB 243.9 million, representing an increase of about 25.1% compared to RMB 194.9 million in the same period of 2022[41]. - Revenue from the peripheral vascular business was approximately RMB 362.7 million, an increase of about 14.6% compared to RMB 316.6 million in the same period of 2022[41]. - The company has established a stable global sales network with distributors in multiple countries across Asia, Africa, North America, South America, and Europe[35]. - The company focuses on advanced minimally invasive medical devices for treating cardiovascular and peripheral vascular diseases[35]. Employee and Administrative Costs - As of June 30, 2023, the company employed 1,391 full-time employees, an increase from 1,299 as of December 31, 2022[68]. - Total employee costs for the six months ended June 30, 2023, amounted to approximately RMB 182.8 million, compared to RMB 151.7 million for the same period in 2022, reflecting a year-on-year increase of 20.5%[68]. - Administrative expenses rose by approximately 29.5% to about RMB 59.7 million, mainly due to increased employee costs and travel expenses[46]. - Sales and distribution expenses increased by approximately 20.9% to about RMB 119.2 million, primarily due to increased marketing and travel expenses[45]. Dividends and Shareholder Returns - The company did not recommend any interim dividend for the six months ended June 30, 2023, consistent with the previous year[2]. - The board did not recommend any interim dividend for the six months ended June 30, 2023, consistent with the same period in 2022[74]. Compliance and Governance - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules and confirmed compliance with all significant provisions as of June 30, 2023[75]. - The Audit Committee, consisting of three independent non-executive directors, has reviewed the interim results for the six months ending June 30, 2023, ensuring compliance with relevant accounting standards and legal requirements[77]. - The company has confirmed that all board members adhered to the securities trading standard code during the six months ending June 30, 2023[76].

Financial Performance - For the fiscal year ending December 31, 2022, LifeTech achieved revenue of approximately RMB 1,097.3 million, an increase of 18.6% compared to RMB 925.3 million in 2021[28]. - Gross profit for the same period was approximately RMB 873.9 million, reflecting a growth of 16.9% from RMB 747.5 million in the previous year[31]. - The net profit attributable to the company's owners was approximately RMB 325.3 million, representing an increase of 11.2% from RMB 292.5 million in 2021[28]. - The company reported a basic earnings per share of RMB 7.7 cents, up 13.2% from RMB 6.8 cents in the prior year[28]. - LifeTech's total assets reached RMB 3,690.1 million in 2022, up from RMB 3,183.7 million in 2021, showcasing robust financial health[29]. - The company reported a significant increase in non-recurring losses related to financial assets, amounting to RMB 41.3 million in 2022, compared to RMB 11.8 million in 2021[31]. - The company's interest income for the year ended December 31, 2022, was approximately RMB 12.0 million, up from RMB 7.7 million in 2021[52]. - The company's cash and cash equivalents decreased by approximately 25.5% to RMB 833.8 million as of December 31, 2022, compared to RMB 1,119.3 million in 2021[56]. - The company's current ratio as of December 31, 2022, was approximately 2.39, down from 3.81 in 2021[55]. - The company's income tax expense increased from approximately RMB 49.6 million in 2021 to approximately RMB 59.3 million in 2022, primarily due to an increase in taxable income[52]. Market and Product Development - The company has received regulatory approval for several new products, including the Fitaya™ venous filter system and FemCross™ 35 peripheral balloon dilation catheter, enhancing its product portfolio[32]. - LifeTech's IBS™ absorbable drug-eluting coronary stent system has completed patient enrollment for a pivotal clinical study in China, indicating progress in clinical development[32]. - The company has successfully completed the first implantations of KONAR-MF™ and LAmbre™ left atrial appendage occluder systems in Japan and South Korea, marking its international expansion efforts[32]. - The domestic market accounted for approximately 81.6% of total revenue in 2022, down from 83.6% in 2021, while overseas markets in Asia (excluding mainland China) and Europe contributed approximately 7.8% and 6.6% respectively[37]. - The company’s domestic sales grew by approximately 15.6% and overseas sales by 33.7% in 2022, driven by effective marketing strategies and increased market penetration[37]. - The company aims to maintain global leadership in product quality and technological innovation while expanding its international market presence[34]. - The company has developed a fourth-generation congenital heart disease occluder to meet diverse patient needs, indicating a focus on innovative product development[65]. - The market demand for left atrial appendage occluders is expected to continue expanding due to a large global population of atrial fibrillation patients[65]. - The company leads the domestic market share in the provision of systemic interventional medical devices for peripheral vascular diseases, with anticipated growth driven by aging population and increased disease detection rates[66]. - The company is the first domestic manufacturer to offer a complete product range of implantable cardiac pacemakers that meet international standards, with optimistic market prospects due to unmet treatment needs in China[66]. Research and Development - Research and development expenses rose by 42.9% to approximately RMB 208.5 million, with capitalized development expenditures of about RMB 109.0 million[47]. - The company submitted 306 patent applications and registered 168 patents as of December 31, 2022, with a total of 1,828 effective patent applications submitted[41]. - The IBS Angel™ iron-based absorbable stent system received "compassionate use" approval from the FDA and is undergoing pre-market clinical trials in China[40]. - The IBS™ absorbable drug-eluting coronary stent system completed all enrollments in a Phase II clinical study in China and is set to begin a Phase III clinical study[40]. - The LAmbre™ left atrial appendage occluder system received registration approval in South Korea, successfully completing over ten implantations[40]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and financial transparency through its experienced board of directors[76]. - The board of directors consists of two executive directors, one non-executive director, and three independent non-executive directors as of the report date[82]. - The company has established an audit committee, remuneration committee, and nomination committee, primarily composed of independent non-executive directors[93]. - The company has implemented necessary arrangements to comply with all code provisions of the corporate governance code[80]. - The independent non-executive directors have confirmed their independence in accordance with the listing rules[83]. - The company has adopted corporate governance principles and has complied with the corporate governance code throughout the year ending December 31, 2022[80]. - The company has established formal policies and procedures for risk management and internal control systems to protect shareholders' interests[111]. - The board has reviewed the effectiveness of the risk management and internal control systems at least once a year, ensuring they are adequate and effective[111]. - The company has a conflict management policy to guide directors on avoiding conflicts of interest[108]. - The audit committee is responsible for recommending the appointment, reappointment, and removal of external auditors to the board[110]. Employee and Management - As of December 31, 2022, the company had 1,299 full-time employees, an increase from 943 in the previous year, with total employee costs amounting to approximately RMB 336.5 million, up from RMB 225.8 million in 2021[67]. - The company has implemented a new share incentive plan to motivate employees, following the termination of the previous stock option plan due to reaching its limit[67]. - The company emphasizes the importance of providing a safe and comfortable working environment, along with equal employment opportunities and training for employees[68]. - The company has established a strategic cooperation agreement with Jian Shi Technology for business development and project investment in both domestic and overseas markets, aiming to enhance overall profitability[69]. - The company plans to continue focusing on technology, automation, and product quality improvements to increase innovation capabilities and expand global market share[69]. Shareholder Relations - The company encourages shareholders to attend annual general meetings to express their opinions and concerns directly to the board[116]. - The annual general meeting provides shareholders the opportunity to engage directly with the board regarding company performance and operations[119]. - The company maintains a high level of transparency in its investor relations, regularly communicating with institutional investors and analysts[116]. - The board has reviewed the implementation and effectiveness of the shareholder communication policy for the year ended December 31, 2022[117]. - Shareholders holding at least 10% of the paid-up capital can request a special general meeting, and if the board fails to convene it within 21 days, the requesters can call the meeting themselves[114]. Financial Management - The company has a strong emphasis on financial management and compliance with international accounting standards, ensuring accurate financial reporting[74]. - The independent auditor's report emphasizes the importance of identifying and assessing risks of material misstatement in the financial statements due to fraud or error[199]. - The company must ensure compliance with relevant ethical requirements related to independence in the audit process[200]. - The company is responsible for ensuring that the consolidated financial statements are free from material misstatement due to fraud or error, and must evaluate the group's ability to continue as a going concern[198]. - The auditor evaluates the appropriateness of accounting policies adopted by the board and the reasonableness of accounting estimates and related disclosures[200].

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佈的內容概不負責，對其準確性或完整性亦不發表任何聲明，並表 明不會就本公佈全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 LifeTech Scientific Corporation 先健科技公司 （在開曼群島註冊成立的有限公司） （股份代號：1302） 截至二零二二年十二月三十一日止年度的 年度業績公佈 | --- | --- | |-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | 財務摘要 | | ‧ | ...

Financial Performance - The company reported revenue of RMB 555.2 million for the six months ended June 30, 2022, representing a 20.4% increase from RMB 461.1 million in the same period of 2021[31]. - Gross profit for the same period was RMB 441.6 million, up 18.0% from RMB 374.4 million year-on-year[31]. - Operating profit increased by 4.5% to RMB 237.9 million compared to RMB 227.6 million in the previous year[31]. - Net profit attributable to the owners of the company was RMB 214.8 million, a 5.1% increase from RMB 204.4 million in the same period last year[31]. - The company’s gross margin decreased by approximately 1.7 percentage points to about 79.5% for the six months ended June 30, 2022, compared to 81.2% for the same period in 2021[40]. - The net profit attributable to the owners of the company was approximately RMB 247.9 million for the six months ended June 30, 2022, representing an increase of about 34.4% from RMB 184.4 million for the same period in 2021[44]. - Basic earnings per share increased to RMB 5.0 cents, up from RMB 4.7 cents in the previous year, indicating improved profitability[106]. Sales and Market Performance - The company’s domestic sales accounted for approximately 83.2% of total revenue, slightly down from 84.0% in the previous year[33]. - Sales in Europe and Asia (excluding mainland China) represented about 6.1% and 7.2% of total revenue, respectively[33]. - The company’s domestic sales grew by approximately 19.3%, while overseas sales increased by 26.4% compared to the previous year[33]. - Revenue from the structural heart disease business was approximately RMB 194.9 million, representing an increase of about 22.5% from RMB 159.1 million in the same period of 2021[38]. - Revenue from the peripheral vascular business was approximately RMB 316.6 million, an increase of about 10.4% from RMB 286.8 million in the same period of 2021[38]. - Revenue from the electrophysiology business was approximately RMB 43.7 million, a significant increase of about 187.5% from RMB 15.2 million in the same period of 2021[39]. Research and Development - Research and development expenses increased by approximately 54.3% to about RMB 100.3 million for the six months ended June 30, 2022, compared to RMB 65.0 million for the same period in 2021[41]. - The company submitted 52 patent applications and had 86 patents approved during the six months ended June 30, 2022, with a total of 1,567 effective patent applications submitted[36]. - The company aims to improve its innovation and R&D capabilities to maintain industry leadership and enhance automation in production to improve product quality[61]. Assets and Liabilities - Total assets as of June 30, 2022, were RMB 3,281.4 million, a 3.1% increase from RMB 3,183.7 million at the end of 2021[31]. - Total equity increased to RMB 2,614.6 million, up 3.3% from RMB 2,530.1 million at the end of 2021[31]. - The group’s total liabilities as of June 30, 2022, included trade and other payables of approximately RMB 432.7 million[45]. - The group maintained a current ratio of approximately 3.81 as of June 30, 2022, consistent with the ratio as of December 31, 2021[45]. - The company’s cash and cash equivalents were approximately RMB 916.9 million as of June 30, 2022, a decrease of about 18.1% from approximately RMB 1,119.3 million as of December 31, 2021[46]. Share Options and Awards - The total number of options that may be issued under the share option plan is capped at 462,929,240 shares, not exceeding 10% of the issued share capital as of September 17, 2021[77]. - The share option plan allows for the issuance of options to eligible participants as a reward for their contributions to the company's development[75]. - As of June 30, 2022, a total of 33,789,600 stock options remain unexercised, held by 20 grantees[83]. - The total number of stock options granted and unexercised reflects the company's commitment to incentivizing employees and aligning their interests with shareholder value[86]. - The company has granted a total of 136,800,000 stock options as of June 30, 2022, which remain unexercised[86]. Corporate Governance - The company has a total of six board members, including two executive directors, one non-executive director, and three independent non-executive directors, ensuring a diverse governance structure[64]. - The audit committee, consisting of three independent non-executive directors, has reviewed the interim results for the six months ended June 30, 2022, confirming compliance with relevant accounting standards and regulations[66]. Strategic Initiatives - The company established LifeTech-Quantum in collaboration with ABG Innovation-Quantum Limited and Quantum Surgical to focus on the R&D and commercialization of innovative surgical robots in China, which received CE certification in September 2021 and FDA 510(k) approval in March 2022[60]. - The company plans to actively explore investment cooperation opportunities with companies in the global healthcare sector to expand its business scope and deepen its global layout[61]. - The company anticipates an upward trend in market demand for its products due to aging populations and increased health awareness[54]. Government Grants and Taxation - The company recognized government grants of RMB 42,390,000, up from RMB 32,080,000, indicating a growth of 32.5%[108]. - The company has maintained a 25% corporate income tax rate for its subsidiaries in China, with two subsidiaries qualifying for a reduced rate of 15% due to their high-tech enterprise status[5].

Financial Performance - The company's revenue for the year ended December 31, 2021, was approximately RMB 925.3 million, an increase of 44.1% compared to RMB 642.3 million in 2020[8]. - Gross profit for the same period was approximately RMB 747.5 million, reflecting a 45.7% increase from RMB 513.1 million in the previous year[12]. - Net profit attributable to the company's owners was approximately RMB 292.5 million, up 35.4% from RMB 216.1 million in 2020[12]. - The company achieved a basic earnings per share of RMB 6.8 cents, a 36.0% increase from RMB 5.0 cents in the prior year[8]. - The operating profit increased by approximately 24.3% to about RMB 328.7 million from RMB 264.5 million in the previous year[32]. - Revenue from the structural heart disease business was approximately RMB 331.1 million, representing a growth of about 60.4% from RMB 206.4 million in the previous year[23]. - Revenue from the peripheral vascular business was approximately RMB 548.5 million, an increase of about 33.4% from RMB 411.3 million in the previous year[24]. - The total comprehensive income for the year was RMB 285,423 thousand, compared to RMB 208,080 thousand in 2020, reflecting a growth of 37%[195]. Regulatory Approvals and Product Development - The company has received regulatory approval for several key products, including the G-iliac™ iliac artery bifurcation stent system and the LAxible™ left atrial appendage occluder[13]. - The IBS™ absorbable drug-eluting coronary stent system has received implied permission for confirmatory clinical trials in China, with a 100% success rate in initial human clinical trials[13]. - The company has 14 products recognized as innovative medical devices by the National Medical Products Administration[13]. - The company is focusing on developing a fourth-generation congenital heart disease occluder to meet diverse patient needs, indicating ongoing product innovation[52]. Market Performance and Sales - The sales in mainland China accounted for approximately 83.6% of total revenue for the year ended December 31, 2021, compared to 83.9% in 2020[18]. - The company's domestic sales grew by approximately 43.6% year-on-year, primarily due to the containment of the COVID-19 pandemic and increased market penetration of its products[18]. - The overseas sales increased by approximately 46.4% compared to the same period in 2020, driven by effective marketing strategies[18]. - Revenue from the European market accounted for approximately 7.4% of total revenue, down from 9.0% in 2020, indicating a slight decline in contribution from this region[48]. Financial Position and Assets - The total assets of the company as of December 31, 2021, were RMB 3,183.7 million, compared to RMB 2,954.5 million in 2020[9]. - The company's total current assets as of December 31, 2021, were approximately RMB 1,837.1 million, up from RMB 1,544.8 million in 2020[37]. - Cash and cash equivalents increased by approximately 15.2% to RMB 1,119.3 million as of December 31, 2021, from RMB 971.7 million in 2020[39]. - The company had no bank borrowings as of December 31, 2021, down from RMB 174.5 million in 2020, resulting in a debt-to-equity ratio of zero[40]. - The total equity attributable to owners was approximately RMB 2,503.6 million as of December 31, 2021, compared to RMB 2,340.1 million in 2020[41]. Research and Development - Research and development expenses decreased by 12.8% to approximately RMB 145.9 million, with capitalized development expenditures of approximately RMB 66.6 million[31]. - The company reported a capitalized development cost of RMB 288,762,000 as of December 31, 2021, related to products for structural heart disease and peripheral vascular disease[187]. Corporate Governance - The company has adopted corporate governance principles in compliance with the Hong Kong Stock Exchange's listing rules, ensuring adherence to the corporate governance code throughout the fiscal year ending December 31, 2021[71]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors as of the report date[73]. - The company has established internal guidelines requiring board approval for significant investments and changes in business strategy[74]. - The independent non-executive directors have confirmed their independence in accordance with listing rules[74]. Employee and Workforce Management - The company employs 943 full-time employees as of December 31, 2021, an increase from 791 in 2020, reflecting growth in workforce[55]. - Total employee costs, including director remuneration, were approximately RMB 225.8 million for the year ended December 31, 2021, down from RMB 314.6 million in 2020[55]. - The company emphasizes the importance of employee welfare, providing a safe working environment and equal employment opportunities[57]. Environmental and Social Responsibility - The company is committed to creating environmentally friendly and sustainable business operations, investing in energy-saving technologies to reduce carbon emissions[60]. - The company plans to release a separate report detailing its environmental and social performance data[60]. Shareholder Relations and Transparency - The annual general meeting serves as a primary channel for communication with shareholders, allowing direct interaction with the board[102]. - The company emphasizes maintaining high transparency to enhance investor relations and regularly communicates with institutional investors and analysts[101]. - The company’s website serves as a communication platform for public and shareholder updates on business developments and financial performance[101].

Financial Performance - For the year ended December 31, 2020, the company's revenue was approximately RMB 642.3 million, a decrease of about 4.0% compared to RMB 668.9 million in 2019[11] - The gross profit for the same period was approximately RMB 513.1 million, down 4.1% from RMB 534.8 million in 2019[11] - The net profit attributable to the company's owners was approximately RMB 216.1 million, an increase of about 67.3% compared to RMB 129.2 million in 2019[11] - The operating profit increased by 40.1% to RMB 264.5 million from RMB 188.8 million in the previous year[8] - Revenue from the structural heart disease business was approximately RMB 206.4 million, a decline of about 24.8% from RMB 274.4 million in 2019[24] - Revenue from the peripheral vascular business increased by approximately 10.4% to RMB 411.3 million, compared to RMB 372.5 million in 2019[24] - Other income increased significantly to approximately RMB 246.9 million, up from RMB 94.3 million in 2019, primarily due to gains from financial assets[29] - R&D expenses increased by approximately 18.6% to RMB 167.3 million, with total R&D costs rising to about RMB 220.6 million, a 9.7% increase[33] Market and Product Development - The company successfully implanted the LAmbre™ left atrial appendage closure system in North America, marking a significant breakthrough[12] - The LAmbre™ left atrial appendage closure system received FDA approval on December 24, 2020, to initiate investigator-initiated clinical trials in the U.S.[12] - The company has 13 products recognized as innovative medical devices by the National Medical Products Administration of China as of the report date[14] - The company has several products in clinical trials, with initial data confirming their safety and efficacy, despite delays caused by the COVID-19 pandemic[14] - The company aims to enhance its innovation capabilities and standards while optimizing its production and sales model to expand market share[15] - The company is developing a new industrial park in Dongguan, with a total construction contract value of up to RMB 620.0 million, expected to be completed by November 2021 and operational by 2023[49] Financial Position and Assets - Total assets as of December 31, 2020, were RMB 2,954.5 million, compared to RMB 1,772.2 million in 2019[9] - Non-current assets increased to RMB 1,409.7 million from RMB 1,166.4 million in 2019[9] - The company’s total liabilities decreased to RMB 596.1 million from RMB 610.6 million in 2019[9] - Total current assets as of December 31, 2020, were approximately RMB 1,544.8 million, up from RMB 605.8 million in 2019[43] - The current ratio improved to approximately 3.13 in 2020 from 1.78 in 2019, indicating better liquidity[43] - The debt-to-equity ratio as of December 31, 2020, was 7.4%, down from 28.4% as of December 31, 2019[48] - The total equity attributable to equity holders was approximately RMB 2,340.1 million as of December 31, 2020, compared to RMB 1,152.0 million as of December 31, 2019[48] Corporate Governance - The company has adopted corporate governance principles in compliance with the Hong Kong Stock Exchange's Listing Rules, confirming adherence to the corporate governance code throughout the year ending December 31, 2020[85] - The board consists of two executive directors, two non-executive directors, and three independent non-executive directors as of the report date[87] - The company has implemented a code of conduct for securities trading, ensuring compliance with the standards set forth in the Listing Rules[86] - The independent non-executive directors bring extensive experience in finance, technology innovation, and policy research, contributing to the company's strategic direction[80][82] - The company has established a strong governance structure with a board led by an experienced CEO, ensuring effective decision-making and strategic planning[98] Shareholder Communication and Transparency - The annual general meeting serves as a key communication channel between the company and its shareholders[126] - The company maintains a high level of transparency to enhance investor relations through timely disclosures[125] - The company has established a written shareholder communication policy to ensure effective communication with shareholders[125] - The board presented the audited consolidated financial statements for the year ended December 31, 2020[128] Investment and Financing Activities - The company completed the placement of 287,320,000 new ordinary shares, raising approximately HKD 930 million, with a placement price of HKD 3.2368 per share[134][135] - The net proceeds from the placement, after deducting costs and expenses, were approximately HKD 930 million[135] - The company plans to use HKD 406 million for repaying certain bank borrowings and HKD 465 million for potential business development, including a new overseas clinical project[136] - The company has maintained a public float of at least 25% of its total issued share capital, in compliance with listing rules[142] Employee and Management Information - As of December 31, 2020, the total employee cost was approximately RMB 314.6 million, a slight increase from RMB 312.0 million in 2019, with a total of 791 full-time employees[64] - The company has a strong management team with extensive experience in the medical device industry, including over 18 years for the CEO[74] - The CFO has approximately 28 years of experience in accounting and has held various senior financial positions in multinational companies[75] Environmental and Social Responsibility - The company is committed to creating environmentally friendly and sustainable business operations, focusing on reducing carbon emissions through investments in energy-efficient technologies[72] - The company plans to release a separate report detailing its environmental and social performance data for 2020[72] - The company is actively addressing waste and recycling issues internally[72]

Financial Performance - For the six months ended June 30, 2020, the company reported revenue of approximately RMB 273.0 million, a decrease of about 11.5% compared to RMB 308.5 million for the same period in 2019[13]. - Gross profit for the same period was RMB 217.1 million, down 14.4% from RMB 253.7 million in 2019[13]. - The operating profit increased by 5.2% to RMB 119.8 million, compared to RMB 113.9 million in the previous year[13]. - Net profit attributable to the owners of the company was approximately RMB 99.0 million, an increase of 7.1% from RMB 92.4 million in 2019[17]. - The basic and diluted earnings per share for the period were RMB 2.3 cents, up 9.5% from RMB 2.1 cents in the same period last year[13]. - The company’s earnings per share for the six months ended June 30, 2020, was RMB 0.12, compared to RMB 0.11 for the same period in 2019, representing an increase of approximately 9.1%[142]. - The total comprehensive income for the six months ended June 30, 2020, was RMB 98,950,000, compared to RMB 96,181,000 for the same period in 2019, indicating an increase of approximately 2.9%[142]. Revenue Breakdown - Sales in the Chinese market accounted for approximately 81.3% of total revenue, compared to 75.9% in the same period of 2019[17]. - Revenue from the structural heart disease business was approximately RMB 79.3 million, a decrease of about 35.7% from RMB 123.4 million in the same period of 2019[28]. - The peripheral vascular business contributed approximately RMB 191.2 million in revenue, an increase of about 4.4% from RMB 183.2 million in the same period of 2019[28]. - Revenue from Europe accounted for approximately 10.9% of total revenue, up from 9.9% in the same period last year[60]. - The electrophysiology segment experienced external sales of RMB 2,509,000, compared to RMB 1,865,000 in the prior year, marking an increase of around 34.4%[158]. Expenses and Costs - Sales and distribution expenses decreased by approximately 20.4% to about RMB 50.4 million for the six months ended June 30, 2020, from approximately RMB 63.3 million for the same period in 2019[34]. - Administrative expenses decreased by approximately 19.3% from RMB 46.2 million for the six months ended June 30, 2019, to RMB 37.3 million for the six months ended June 30, 2020[35]. - R&D expenses decreased by approximately 13.9% from RMB 57.6 million for the six months ended June 30, 2019, to RMB 49.6 million for the six months ended June 30, 2020[38]. - Employee costs, including director remuneration, increased to RMB 83,572,000 in 2020 from RMB 71,876,000 in 2019, reflecting a rise of about 16.3%[174]. Assets and Liabilities - Total current assets as of June 30, 2020, were approximately RMB 628.6 million, compared to RMB 605.8 million as of December 31, 2019[49]. - The total assets of the group as of June 30, 2020, amounted to RMB 1,889,079,000, an increase from RMB 1,772,226,000 as of December 31, 2019[164]. - The company’s total liabilities decreased to RMB 1,240,429,000 as of June 30, 2020, from RMB 1,243,890,000 as of December 31, 2019, indicating a reduction of approximately 0.3%[141]. - The debt-to-equity ratio was approximately 29.9% as of June 30, 2020, compared to 28.4% as of December 31, 2019[51]. Investments and Development - The company continues to invest in research and development of advanced minimally invasive medical devices for cardiovascular and peripheral vascular diseases[16]. - The group invested approximately RMB 127.3 million in ABG-Grail Limited, acquiring about 27% equity, aimed at enhancing market exposure in early cancer detection[41]. - The company established a strategic partnership to develop and commercialize innovative surgical robots in China, particularly for liver cancer treatment[25]. - The company incurred development expenses of approximately RMB 23,555,000 for structural heart disease and peripheral vascular disease businesses, which is comparable to RMB 23,940,000 in the same period of 2019[183]. Governance and Compliance - The board consists of seven directors, including two executive directors and three independent non-executive directors, ensuring a diverse governance structure[70]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim results for the six months ended June 30, 2020, ensuring compliance with relevant accounting standards and legal requirements[74]. - The company adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance by all board members as of June 30, 2020[71]. - The company has not identified any violations of the standard code of conduct by employees with insider information as of June 30, 2020[71]. Shareholder Information - As of June 30, 2020, the chairman and CEO, Mr. Xie Yuehui, holds 801,514,928 shares, representing approximately 18.53% of the company[78]. - The company has major shareholders, including Xianjian Advanced Technology Limited, which holds 781,914,928 shares, accounting for 18.07%[83]. - The company has a diverse shareholder base, with multiple entities holding significant stakes, enhancing its market presence[86]. - The company has issued a total of 366,680,000 stock options under the stock option plan, with 206,680,000 options canceled as of June 30, 2020[93]. COVID-19 Impact - The impact of the COVID-19 pandemic on the company's operations is considered temporary, with expectations of recovery as public health measures improve[17]. - The company aims to expand its distribution network and develop new products to mitigate the adverse effects of COVID-19 on sales and operations[66].