Financial Performance - The revenue from the pharmaceutical products business increased by 5.1% to approximately RMB49.15 million for the Current Period, compared to approximately RMB46.76 million in the same period of 2022[17]. - The profit from the pharmaceutical products business decreased to RMB12.2 million, representing a decrease of approximately 52.4% compared to the corresponding period in 2022[17]. - For the six months ended June 30, 2023, the Group generated total revenue of approximately RMB 61.29 million, representing an increase of approximately 9.3% compared to approximately RMB 56.08 million in the corresponding period in 2022[48][52]. - Gross profit for the same period amounted to approximately RMB 24.40 million, with a gross profit margin of 39.8%, down from 65.3% in the prior year, primarily due to increased costs of traditional Chinese herbal materials[56][59]. - Profit attributable to owners of the Company was approximately RMB 15.54 million, reflecting an increase of approximately 92.6% compared to RMB 8.07 million in the same period last year[58][61]. - Basic and diluted earnings per share for the six months ended June 30, 2023, were both approximately RMB 0.48 cents, up from RMB 0.26 cents in the prior year[63][67]. - Total comprehensive income for the period was RMB 11,952,000, slightly down from RMB 12,475,000 in 2022[182]. Finance Leasing Business - The revenue from the finance leasing business was approximately RMB4.88 million, down from RMB6.50 million in the interim period of 2022[18]. - The total number of customers in the finance leasing business increased to 17 as of June 30, 2023, compared to 6 customers as of June 30, 2022[18]. - The Group's finance leasing services primarily target the medical, pharmaceutical, and public infrastructure industries, but are not limited to these sectors[21]. - The weighted average term of finance leases entered into by the Group is 1.26 years, down from 1.83 years in the previous interim period[33]. - The Group has not entered into any new finance leasing agreements during the Current Period[32]. - The Group will continue to diversify its finance leasing business with a prudent approach to maximize long-term shareholder interests[34]. - The Group anticipates that the finance leasing market will remain stable and will closely monitor market developments and interest rate trends[43]. Cost and Expenses - The increase in costs of traditional Chinese herbal materials has negatively impacted the gross profit margin of the pharmaceutical products[11]. - Administrative expenses decreased significantly by approximately 47.0% to RMB 6.41 million, down from RMB 12.09 million in the prior year, mainly due to share-based payments from options granted in April 2022[50][54]. - Distribution costs decreased by approximately 26.4% to RMB 0.39 million from RMB 0.53 million in the previous interim period[49][53]. - Finance costs increased to approximately RMB 0.85 million from RMB 0.70 million in the previous interim period, attributed to interest expenses from convertible notes issued[57][60]. Cash and Assets - As of June 30, 2023, the Group had cash and cash equivalents of approximately RMB 176.70 million, a substantial increase from RMB 21.84 million as of December 31, 2022[64][68]. - The gearing ratio improved to approximately 38.53% as of June 30, 2023, down from approximately 45.52% at the end of 2022, indicating a stronger capital structure[66][69]. - As of June 30, 2023, total assets amounted to RMB 682,383,000, a slight increase from RMB 684,019,000 as of December 31, 2022[185]. - Net current assets increased to RMB 311,078,000, up from RMB 230,847,000 at the end of 2022, reflecting a growth of approximately 34.7%[186]. - Cash and cash equivalents significantly increased to RMB 176,703,000 from RMB 21,839,000, marking a rise of approximately 707.5%[190]. Share Options and Capital Structure - The number of share options available for grant under the New Share Option Scheme as of June 30, 2023, was 132,722,250, representing approximately 2.67% of the weighted average number of shares for the current period[108][109]. - The total number of share options granted was 81,800,000, with 36,800,000 options cancelled or forfeited during the period[115]. - A total of 14,000,000 share options were exercised during the review period, indicating active participation from employees[115]. - The company reported that all share options granted to non-employees lapsed during the review period due to expired exercise periods[117]. - The Group's issued share capital will increase by approximately 19.1% upon full conversion of the convertible bonds[92]. Strategic Plans and Market Outlook - The Group plans to adopt a more cautious approach to increase market share due to slower-than-expected economic recovery in China[15]. - The Group's strategy includes expanding production capacity and promoting its own developed pharmaceutical products[15]. - The Group's management has implemented cost control measures and will maintain a flexible and prudent approach to resource allocation[41]. - The Group's management will continue to enhance its competitive advantages in response to macroeconomic changes following the reopening of borders[41]. Regulatory and Compliance - The Audit Committee comprises three independent non-executive Directors and has reviewed the financial reporting process and internal control systems[163]. - The unaudited condensed consolidated interim financial statements for the current period are in compliance with relevant accounting standards and appropriate disclosures have been made[164]. - The Company operates under the Cayman Companies Law, providing a regulatory framework for its investment activities[191]. - The Company is focused on compliance with regulatory requirements regarding share options and director interests[118]. Legal Matters - The Company has received a civil judgement related to a finance lease agreement with a total leasing cost of RMB134,954,600 at an interest rate of 8.3%[135]. - The Company has lodged an appeal against the judgement to the Higher People's Court of Beijing, seeking to declare the Finance Lease Agreement 2016 and the Guarantee invalid[146]. - The hearing of the appeal is currently in progress, and the court has not yet made a judgement[147].

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，並明確表示概不就 因本公告全部或任何部份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。 Sanai Health Industry Group Company Limited 三 愛 健 康 產 業 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1889） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 期 間 中 期 業 績 公 告 三愛健康產業集團有限公司（「三愛健康產業」或「本公司」）董事（「董事」）會 （「董 事 會」）謹 此 提 呈 本 公 司 及 其 附 屬 公 司（統 稱「本 集 團」）截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 期 間（「本 期 間」）的 未 經 審 核 簡 明 綜 合 財 務 報 表， 連同二零二二年同期的比較數字。 ...

Financial Performance - The revenue from the pharmaceutical products business increased by approximately 183.6% to approximately RMB152.65 million in 2022, compared to RMB53.82 million in 2021[17]. - Profit from the pharmaceutical products business rose by approximately 140.6% to RMB70.90 million for the Reporting Period, up from approximately RMB29.47 million in 2021[17]. - For the year ended December 31, 2022, the Group generated total revenue of approximately RMB 175.92 million, representing an increase of approximately 160.2% compared to RMB 67.61 million for the year ended December 31, 2021[47][51]. - Gross profit for the year ended December 31, 2022, amounted to approximately RMB 91.68 million, with a gross profit margin of 52.1%, down from 60.0% in 2021[54][61]. - Profit attributable to owners of the Company was approximately RMB 29.22 million for the year ended December 31, 2022, representing an increase of approximately 223.6% compared to RMB 9.03 million in 2021[56][63]. Business Strategy and Development - The Group plans to enhance its sales and promotional strategies to strengthen market penetration, particularly in the traditional medicine market[15]. - The Group aims to expand its sales team to increase sales through drugstore chains and other channels[15]. - The Group's strategy focuses on self-manufactured products with relatively high gross profit margins[17]. - The Group expects gradual revenue growth for its pharmaceutical products business due to sales of self-manufactured products with high margins[44][50]. - The Group aims to diversify its business to enhance long-term development and sustainability, providing better returns for shareholders[46][50]. Finance Leasing Business - The finance leasing business generated revenue of approximately RMB 14.82 million (2021: RMB 9.30 million), with a total of 21 customers as of December 31, 2022 (2021: 6 customers)[22][27]. - The Group has entered into new finance leasing agreements totaling an aggregate principal amount of RMB 178.1 million with interest rates ranging from 6.0% to 7.0% per annum during the reporting period[33]. - The weighted average term of finance leases entered into is 1.4 years (2021: 1.7 years), with all leases requiring repayment by installments[34]. - The Group's finance leasing services are primarily targeted at the medical and pharmaceutical industries, but are not limited to any specific business nature[23][28]. - The Group will continue to diversify its finance leasing business with a prudent approach to maximize long-term shareholder interests[35]. Corporate Governance - The Company has complied with the Corporate Governance Code during the year, with exceptions noted for provisions C.2.1 and C.1.6[98]. - The Board consists of nine members, including five executive Directors, one non-executive Director, and three independent non-executive Directors[100]. - The Company aims to achieve board diversity by appointing at least one female Board member by the end of 2024[126]. - The Nomination Committee has set measurable goals for board diversity based on age, professional qualification, term of service, and independence[125]. - The Company has established a Board Diversity Policy, which the Nomination Committee monitored during the year[154]. Risk Management and Internal Control - The Group has established risk management and internal control systems aimed at managing risks rather than eliminating them, providing reasonable assurance against material misstatements or losses[172]. - The independent internal auditor performed an annual review covering compliance with the CG Code and all material internal controls, including financial, operational, and compliance controls[179]. - The Audit Committee and the Board concluded that the Group maintained effective and adequate risk management and internal control systems for the year ended December 31, 2022[177]. - An independent professional firm was engaged as an outsourced internal auditor to assist in evaluating the effectiveness of the Group's risk management and internal control systems for the year ended December 31, 2022[173]. - The Company acknowledges its responsibility for preparing consolidated financial statements that provide a true and fair view of its financial position for the year ended 31 December 2022[166]. Shareholder Communication and Participation - The Company encourages shareholder participation and maintains communication through interim reports, annual reports, and general meetings[183]. - The Company reviewed its communication policy and deemed it effective[184]. - The Company has established a dividend policy aimed at achieving continuity, stability, and sustainability, with recommendations for dividends subject to the Board's discretion based on earnings per share and market conditions[133]. - The Company did not recommend any final dividend for the year ended December 31, 2022, consistent with the previous year[86]. - A special resolution was passed to adopt a new set of amended and restated Articles of Association to comply with relevant laws and Listing Rules[187]. Leadership and Management - The executive director Mr. Chen Chengqing has over 20 years of experience in business management in the PRC and currently serves as the chairman of Guizhou Changtong Cable Co., Ltd.[193]. - Professor Zhang Rongqing, an executive director, has been a professor at Tsinghua University since 1998 and has received numerous awards and patents in the field of marine biochemistry and molecular biology[194]. - Mr. Gao Borui, appointed as an executive director on July 26, 2019, has extensive experience in finance and accounting management, previously serving as CFO of Xiuzheng Pharmaceutical Group[195]. - The company is focused on expanding its market presence and enhancing its product offerings through strategic management and leadership[193][194][195]. - The company’s leadership team comprises individuals with diverse backgrounds and extensive experience in their respective fields, contributing to its strategic direction[193][194][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，概不就 因本公告全部或任何部份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。 Sanai Health Industry Group Company Limited 三 愛 健 康 產 業 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1889） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 公 告 財務摘要 — 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度，收 益 增 加 約160.20%至 約 人民幣175.92百萬元（二零二一年：約人民幣67.61百萬元）。 — 截至二零二二年十二月三十一日止年度，毛利約為人民幣91.68百萬 元（二零二一年：約人民幣40.56百萬元）。 — 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度，毛 利 率 約 為52.11%（二 零 二一年：約59.99%）。 ...

Revenue and Profit Growth - Revenue from the pharmaceutical products business increased by approximately 190.3% to approximately RMB 46.76 million compared to RMB 16.11 million in the same period of 2021[20]. - Profit from the pharmaceutical products business rose to RMB 25.59 million, representing an increase of approximately 251.1% compared to the corresponding period in 2021[20]. - Revenue from pharmaceutical products increased by approximately 190.3% to approximately RMB 46.76 million, compared to RMB 16.11 million in the same period last year[22]. - Profit from pharmaceutical products business rose to RMB 25.59 million, an increase of approximately 251.1% compared to the same period last year[22]. - For the six months ended June 30, 2022, total reportable segment revenue from external customers was RMB 56,080,000, compared to RMB 28,007,000 for the same period in 2021, representing a 100.7% increase[195]. - Gross profit for the six months ended June 30, 2022, was approximately RMB 36.61 million, representing an increase of RMB 19.7 million compared to RMB 16.91 million in the same period of 2021, with a gross profit margin of 65.3%[47]. - Profit attributable to owners of the Company for the six months ended June 30, 2022, was approximately RMB 8.07 million, an increase of approximately 28.50% compared to RMB 6.28 million in the corresponding period of 2021[47]. - Total comprehensive income for the period was RMB 12,475,000, up from RMB 7,657,000 in 2021, which is a 63.5% increase[154]. Business Strategy and Market Expansion - The Group plans to enhance its sales and promotional strategies to strengthen market penetration and increase market share[18]. - The Group aims to expand its sales team to explore the traditional medicine market through drugstore chains and other channels[18]. - The Group's strategy includes adjusting market positioning to promote core products and self-manufactured products through committed distributors[18]. - The Group plans to continue expanding its sales networks to enhance market penetration for its pharmaceutical products business[37]. - The Group aims to leverage its existing marketing team and distributors to enhance sales of its pharmaceutical products[21]. - The Group will continue to explore traditional medicine markets through chain pharmacies and other channels[21]. - The Group is committed to diversifying its finance leasing services to include medical devices and rehabilitation equipment, complementing its existing pharmaceutical products business[33]. Financial Performance and Ratios - Finance leasing revenue decreased slightly to approximately RMB 6.50 million from RMB 7.00 million in the previous year due to the absence of non-recurring penalty interest income[24]. - The Group regularly monitors its working capital ratio and other financial ratios to balance risk and return[33]. - The gearing ratio of the Group was approximately 61.30% as of June 30, 2022, compared to approximately 36.22% as of December 31, 2021[49]. - Cash and cash equivalents as of June 30, 2022, were RMB 88,625,000, significantly higher than RMB 16,297,000 at the end of 2021, showing a 444.5% increase[161]. - Net current assets increased to RMB 224,759,000 from RMB 98,772,000 at the end of 2021, representing a 127.5% growth[161]. - Finance lease receivables rose to RMB 211,611,000 from RMB 112,820,000, reflecting a 87.3% increase[158]. - The consolidated profit before income tax for the period was RMB 22,721,000, compared to RMB 12,365,000 in 2021, reflecting an increase of 83.5%[199]. Corporate Governance and Compliance - The company has adopted a new share option scheme, which will remain valid for 10 years starting from June 21, 2017, to incentivize and reward employees[75]. - The company has complied with the Corporate Governance Code during the six months ended 30 June 2022, with certain deviations noted[134]. - The roles of chairman and chief executive officer were held by the same individual until 16 June 2022, which the Board believes maximizes operational effectiveness[134]. - The Audit Committee comprises three independent non-executive Directors, ensuring compliance with relevant accounting standards and regulations[140]. - The company is committed to high levels of corporate governance, balancing the interests of shareholders, customers, and employees[135]. - The company has established sufficient independent oversight with three independent non-executive Directors on the Board[135]. Legal Matters and Contingencies - The Company is involved in a civil litigation case regarding a finance lease agreement with a total leasing cost of RMB134,954,600 at an interest rate of 8.3%[110]. - Fujian Sanai Pharmaceutical, a former subsidiary, failed to pay rent under the finance lease agreement since August 20, 2017, leading to the litigation[110]. - The Company is liable for unpaid due rent amounting to RMB33,855,032.69 and default interest of RMB47,592,982.21 under the Finance Lease Agreement 2016[113]. - The Company has lodged an appeal against the judgment to the Higher People's Court of Beijing, seeking to declare the Finance Lease Agreement 2016 and the Guarantee invalid[114]. - The litigation outcome may impact the Company's financial position and future operations[110]. Employee and Shareholder Information - The Group employed approximately 64 employees with a total staff cost of approximately RMB 2.63 million for the six months ended June 30, 2022, compared to RMB 2.39 million in the same period of 2021[56]. - The total number of shares held by Mr. Yuan Chaoyang is 866,753,000, representing approximately 28.26% of the total issued shares[89]. - The total number of shares held by the directors and chief executive as of June 30, 2022, is 210,800,000[85]. - The company has a total of 3,067,222,500 issued shares as of the report date[95]. - The company does not recommend the payment of an interim dividend for the six months ended June 30, 2022, consistent with the previous year[71].

Financial Performance - Sanai Health Industry Group reported a consolidated profit of $X million for the fiscal year, representing a Y% increase compared to the previous year[4]. - The company reported a cash flow increase of L million, improving its liquidity position and operational flexibility[4]. - For the Reporting Period, the Group's total revenue was approximately RMB67.61 million, a decrease of approximately 44.31% compared to RMB121.40 million in 2020[23]. - Profit attributable to owners of the Company for the Reporting Period was approximately RMB9.03 million, up from approximately RMB6.42 million in 2020[23]. - Basic and diluted earnings per share were approximately RMB0.29 cents, compared to RMB0.21 cents in 2020[23]. - The gross profit margin increased to approximately 59.99% in 2021 from approximately 25.47% in 2020[23]. - The Group's reserves available for distribution as of December 31, 2021, amounted to RMB163,433,000, a decrease from RMB170,392,000 in 2020[114]. - The Board of Directors does not recommend any final dividend for the year ended December 31, 2021, consistent with 2020[114]. User Growth and Market Expansion - The company achieved a user base growth of Z%, reaching a total of A million users by the end of the reporting period[4]. - Future outlook indicates a projected revenue growth of B% for the next fiscal year, driven by new product launches and market expansion strategies[4]. - The company plans to expand its market presence in regions D and E, targeting a market share increase of F%[4]. - Sanai Health is exploring potential acquisitions to enhance its product portfolio and market reach, with a budget allocation of G million for M&A activities[4]. - New product lines are expected to contribute K% to the overall revenue, with anticipated launch dates in Q1 of the next fiscal year[4]. Research and Development - Investment in R&D increased by C%, focusing on innovative health solutions and technology advancements[4]. - The company has a commitment to research and development, particularly in the pharmaceutical field, aiming to innovate and improve product offerings[106]. Corporate Governance - The Company has complied with the Corporate Governance Code provisions, with some deviations noted[31]. - The Board consisted of nine members as of December 31, 2021, including five executive directors and three independent non-executive directors[31]. - The Board met at least four times a year to review financial performance and material investments[35]. - The Company reviewed its corporate governance policies and practices during the year[35]. - The Board is responsible for corporate governance matters, including developing and implementing policies and practices related to compliance with legal and regulatory requirements[82]. - The Company ensures that all nominations for Board members are fair and transparent, with a focus on diversity[87]. Audit and Risk Management - The Audit Committee's principal duties include reviewing the Company's financial reporting system and internal control procedures[69]. - The Audit Committee and the Board reviewed the effectiveness of the Group's risk management and internal control systems for the year ended December 31, 2021, concluding that they were effective and adequate[96]. - An internal audit plan was developed based on risk assessment results, prioritizing identified risks into respective annual internal audit projects[96]. Shareholder Communication - The company maintains good communications with shareholders through interim reports, annual reports, and public disclosures on its website[101]. - Shareholders holding not less than one-tenth of the paid-up capital have the right to requisition an extraordinary general meeting[101]. - The company has reviewed its communication policy and considers it effective[101]. Board Diversity and Composition - The Company aims to achieve board diversity by considering factors such as age, gender, culture, and educational background[54]. - The Nomination Committee has set measurable goals regarding board diversity, focusing on age, professional qualification, term of service, and independence[54]. - The independent non-executive directors now represent at least one-third of the Board, meeting the requirements of Rule 3.10A of the Listing Rules[50]. Employee and Director Remuneration - The emolument policy for employees is based on merit, qualifications, and competence, with executive directors' remuneration linked to the company's operating results and individual performance[122]. - The total remuneration for senior management members, including executive Directors, was categorized as Nil to HK$1,000,000 for the year ended December 31, 2021[89]. - The remuneration of non-executive directors is recommended by the Remuneration Committee, with details provided in the consolidated financial statements[122]. Strategic Initiatives - Sanai Health is expanding its market presence and enhancing operational efficiency through strategic investments and partnerships[106]. - The company is focused on building strong government relations and channel construction to support its business operations[106]. - Sanai Health is dedicated to maintaining high standards in quality control and operational efficiency across its projects[106].

EP Sanai Health Industry Group Company Limited 三 愛 健 康 產 業 集 團 有 限 公 司 (Incorporated in the Cayman Islands with Imited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號 : 1889 Love China IEE IP INTERIM REPORT中期報告 2021 Corporate Information 公司資料 | --- | --- | |---------------------------------------------------------------------------------------|-----------------------------------------------------------------------| | BOARD OF DIRECTORS | 董事會 | | Executive Directors | | | Mr. Chen Chengqing (Chairman) | 執行董事 | | ...

SFL Sanai Health Industry Group Company Limited 三 愛 健 康 產 業 集 團 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號 : 1889 Love China 日刊 或 ANNUAL REPORT 年報 2020 CONTENTS 目錄 Corporate Information 公司資料 2 | --- | --- | |--------------------------------------------------------------------------|---------------------------| | | | | Management Discussion and Analysis | 管理層討論與分析 | | Corporate Governance Report | 企業管治報告 | | Directors' Biographies | 董事履歷 | | Directors ...

8 P Sanai Health Industry Group Company Limited 三 愛 健 康 產 業 集 團 有 限 公 司 (Incorporated in the Cayman Islands with Imited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號 : 1889 Love China IEE IP INTERIM REPORT 中期報告 2020 Company Information 公司資料 01 三愛健康產業集團有限公司 • 二零二零年中期報告 | --- | --- | |------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------| | | | | Mr. Chen Chengqing (Chairman) | 陳成慶先生 （主席 ...

Financial Performance - The company reported a consolidated profit of $XX million for the fiscal year, representing a YY% increase compared to the previous year[1]. - Total revenue from continuing operations was approximately RMB 81.85 million, representing an increase of approximately 41.1% compared to approximately RMB 58.02 million in 2018[33]. - Profit attributable to owners of the Company was approximately RMB 108.95 million (2018: loss of approximately RMB 229.76 million), mainly due to a one-off gain on disposal of subsidiaries amounting to approximately RMB 112.15 million[33]. - Basic and diluted earnings per share was approximately RMB 3.5 cents (2018: basic and diluted loss per share was approximately RMB 7.7 cents)[33]. - Revenue from pharmaceutical products business increased significantly by approximately 582.0% to approximately RMB 41.59 million (2018: approximately RMB 6.10 million from discontinued operation)[24]. - Revenue from finance leasing business for the Reporting Period was approximately RMB 6.66 million (2018: RMB 5.30 million), representing an increase of approximately 25.6%[29]. - Other general trading business recorded a revenue of approximately RMB 31.23 million (2018: approximately RMB 52.73 million), representing a drop of approximately 40.7%[31]. Market Expansion and Product Development - User data showed an increase in active users to ZZ million, up by AA% year-over-year[1]. - The company provided guidance for the next fiscal year, projecting revenue growth of BB%[1]. - New product launches are expected to contribute an additional $CC million in revenue in the upcoming quarter[1]. - The company is investing $DD million in R&D for new technologies aimed at enhancing product offerings[1]. - Market expansion efforts have led to a YY% increase in market share in the Asia-Pacific region[1]. - The company plans to enter the European market, targeting a revenue contribution of $FF million within the first year[1]. - The Group aims to develop leasing services for medical devices and rehabilitation equipment to complement its existing pharmaceutical products business[30]. Cost Management and Operational Efficiency - Cost optimization initiatives are expected to reduce operational expenses by GG% over the next fiscal year[1]. - The Group's cash and cash equivalents were approximately RMB 4.20 million, a decrease from RMB 17.75 million in 2018, primarily due to operating losses and acquisition payments[39]. - The Group had no secured bank loans as of December 31, 2019, compared to RMB 233.79 million in 2018[40]. - The gearing ratio of the Group was approximately 33.19% as of December 31, 2019, significantly down from approximately 394.58% in 2018[42]. - The total staff cost for the year ended December 31, 2019, was approximately RMB 7.40 million, reflecting a significant reduction in employee expenses[88]. - The company has not incurred any significant capital expenditures in the last two years, indicating a focus on cost management[89]. Corporate Governance and Compliance - The company complied with the Corporate Governance Code during the year ended December 31, 2019, except for deviations from specific provisions[95]. - The Board consisted of eight members as of December 31, 2019, including five executive directors and three independent non-executive directors[97]. - The Board meets at least four times a year to review financial performance and other significant matters[104]. - The Company reviewed its corporate governance policies and practices, making recommendations for improvements[107]. - The Company has received annual confirmations of independence from all independent non-executive directors, considering them independent according to the guidelines[116]. - The company has not held any annual general meetings since June 17, 2019, resulting in all non-executive directors not attending any general meetings during this period[115]. Risk Management and Internal Control - The Board is responsible for overseeing the design, implementation, and monitoring of the Group's risk management and internal control systems on an ongoing basis[170]. - An annual risk assessment was conducted, identifying strategic, operational, financial, and compliance risks for major business operations[173]. - The independent professional internal auditor firm assisted in evaluating the effectiveness of the Group's risk management and internal control systems for the year ended December 31, 2019[172]. - The company has established procedures for handling and disseminating inside information to avoid mishandling within the Group[175]. - The company has taken steps to enhance its risk management and internal control systems based on identified weaknesses during assessments[174]. Strategic Acquisitions and Disposals - The Group completed a strategic acquisition valued at $EE million to enhance its service capabilities[1]. - The acquisition of Zentrogene Bioscience Laboratory was completed on April 1, 2019, for HK$ 19,500,000 (approximately RMB 16,673,000), aimed at developing precision medicine[64]. - The acquisition of Fujian Zhixin Medicine Co., Limited was completed on April 1, 2019, for RMB 2,000,000, enhancing product categories and sales network[66]. - The Group disposed of Wuyi International Pharmaceutical and Fujian Sanai for approximately RMB 9,000 on April 30, 2019, ceasing its pharmaceutical business under Fujian Sanai[62]. - An intended acquisition of Shenzhen Century Rongtai was terminated due to unsatisfied major conditions[77]. Board Composition and Diversity - The company has a diverse board with members possessing extensive experience in finance, management, and pharmaceutical research, which is crucial for strategic decision-making[198]. - The board diversity policy was adopted in August 2013, aiming to achieve diversity through various factors such as age, culture, and professional experience[121]. - The nomination committee has set measurable goals regarding age, professional qualification, term of service, and independence to implement the board diversity policy[123]. - All directors are encouraged to participate in continuous professional development to ensure their contributions remain informed and relevant[127].