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].

3.1 Sanai Health Industry Group Company Limited 三 爱 健 康 產 業 集 團 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) (於閱曼群島註冊成立的有限公司) Stock Code 股份代號：1889 Interim Report 中期報告 । 2019 Corporate Information 公司資料 BOARD OF DIRECTORS Executive Directors Mr. Chen Chengqing (Chairman) Mr. Gao Borui (appointed on 26 July 2019) Mr. Yuan Chaoyang (appointed on 26 July 2019) Professor Zhang Rongqing Mr. Cheng Hok Kai, Frederick (appointed on 9 May 2019) Ms. Hung Hoi Lan (resigned on 26 July 2019) Non-exe ...

Financial Performance - The company reported a consolidated profit of $XX million for the year, representing a YY% increase compared to the previous year[6]. - Revenue increased by 2.5% to RMB64.1 million, with a total loss after tax of RMB229.76 million, including a one-off extraordinary loss of RMB189.65 million[12]. - The Group recorded a gross loss margin of 0.6% for the reporting period[12]. - For the year ended December 31, 2018, the Group achieved total revenue of RMB 64.12 million, representing an increase of 2.54% compared to RMB 62.53 million in 2017[23]. - The gross loss margin improved significantly to 0.55% in 2018 from 90.79% in 2017[23]. - The loss attributable to owners of the Company decreased to RMB 229.76 million in 2018 from RMB 1,151.74 million in 2017[23]. - The basic loss per share was RMB 7.7 cents in 2018, down from RMB 47.8 cents in 2017[23]. - The Group's financial performance for the year ended December 31, 2018, is detailed in the consolidated statement of profit or loss[152]. User Growth and Market Expansion - User data showed a growth of ZZ% in active users, reaching a total of AA million users by the end of the fiscal year[11]. - The company plans to expand its market presence in Asia, targeting a market share increase of DD% over the next two years[11]. - The company provided a future outlook, projecting a revenue growth of BB% for the next fiscal year, driven by new product launches and market expansion[11]. Product Development and Innovation - Investment in R&D increased by CC%, focusing on innovative technologies and product development[11]. - A strategic acquisition was completed, enhancing the company's capabilities in the health sector, expected to contribute an additional EE million in revenue annually[11]. - The company introduced a new product line that is anticipated to generate FF million in sales within the first year of launch[11]. - The Company has acquired a biotechnology company to enhance its precision medicine capabilities, focusing on genetic testing and molecular diagnostic testing[20]. - A new plant factory project for cultivating Taiwan anoectochilus with an expected investment of about RMB30 million is set to be launched[19]. Operational Efficiency and Cost Management - The gross margin improved to GG%, reflecting better cost management and pricing strategies[11]. - The company aims to reduce operational costs by HH% through efficiency improvements and process optimization[11]. - The Company plans to transfer part of the production of oral pharmaceutical products to Fujian Yongchun Pharmaceutical Company to expand production scale[14]. Governance and Board Structure - The Company does not currently have a Chief Executive Officer, with the Chairman overseeing operations[57]. - The Board consists of four independent non-executive Directors, ensuring adequate independence and protection of shareholder interests[57]. - The Board reviews corporate governance policies and practices annually, making recommendations as necessary[56]. - The Company has developed a code of conduct applicable to directors and employees, which is reviewed regularly[56]. - The Board's attendance at meetings reflects a commitment to governance, with all Executive Directors present at every meeting[56]. - The Company appointed four independent non-executive Directors, with at least one possessing appropriate professional accounting qualifications or related financial management expertise[60]. Risk Management and Internal Control - The Board is committed to reviewing the adequacy and effectiveness of the Group's risk management and internal control systems at least annually[111]. - An annual risk assessment was conducted, identifying strategic, operational, financial, and compliance risks for major business operations, leading to a prioritized internal audit plan[114]. - The Group has established risk management and internal control systems to manage risks associated with achieving business objectives[111]. - The Company has taken steps to enhance its risk management and internal control systems based on identified weaknesses[118]. Shareholder Communication and Participation - The Company encourages shareholder participation and maintains communication through interim reports, annual reports, and public disclosures[122]. - The Company has a structured process for convening extraordinary general meetings upon shareholder request[123]. - The Board of Directors did not recommend declaring any final dividend for the year ended December 31, 2018, consistent with the previous year where no dividend was declared[152]. Remuneration and Compensation - The remuneration policy for executive directors is based on the company's operating results, individual performance, and comparable market statistics[170][175]. - The emoluments of non-executive directors are recommended by the Remuneration Committee, with details provided in the financial statements[170][175]. - The total remuneration paid to the external auditor for the year ended December 31, 2018, was HK$2,220,000, which included HK$1,950,000 for audit services and HK$270,000 for non-audit services[105]. Share Options and Capital Structure - The New Share Option Scheme allows for the grant of options not exceeding 10% of the issued shares, which is 233,877,250 shares, approximately 7.63% of the Company's issued shares as of the report date[197]. - The maximum number of shares that may be issued upon exercise of all outstanding options under the New Share Option Scheme shall not exceed 30% of the shares of the Company in issue at any time[197]. - The Company has not entered into any arrangements enabling Directors to acquire benefits through share acquisition during the year ended December 31, 2018[190].