Financial Performance - For the fiscal year ending December 31, 2024, the group recorded revenue of approximately HKD 93.9 million, an increase of about 87.1% compared to HKD 50.2 million in the previous year[7]. - The gross profit for the fiscal year was approximately HKD 11.5 million, a decrease of about 10.9% from HKD 12.9 million in the previous year[7]. - The net loss attributable to the company's owners was approximately HKD 31.0 million, an increase of about 39.6% from a loss of HKD 22.2 million in the previous year[7]. - The board of directors did not recommend the payment of a final dividend for the fiscal year ending December 31, 2024, consistent with the previous year[7]. - Revenue from the distribution and trade of pharmaceuticals and related products increased by approximately 106.8% to HKD 88.7 million, compared to HKD 42.9 million in the previous fiscal year[17]. - Revenue from marketing and promotional services decreased by approximately 28.8% to HKD 5.2 million, down from HKD 7.3 million in the previous fiscal year[18]. - Total revenue for the year was approximately HKD 93.9 million, an increase of about 87.1% compared to approximately HKD 50.2 million in the fiscal year 2023[31]. - Sales cost for the year was approximately HKD 82.5 million, representing an increase of about 121.8% from approximately HKD 37.2 million in the fiscal year 2023[32]. - Other income for the year was approximately HKD 2.1 million, a significant improvement from a loss of approximately HKD 1.3 million in the previous year[34]. - The company reported a net loss of approximately HKD 31.0 million for the year, an increase of about 39.6% compared to the net loss of approximately HKD 22.2 million in the fiscal year 2023[41]. Asset and Investment Overview - The group’s total assets as of December 31, 2024, were approximately HKD 505.2 million, compared to HKD 491.6 million in the previous year[6]. - The fair value loss on investments in Town Health International Medical Group Limited was approximately HKD 9.4 million, with a fair value of HKD 28.8 million as of December 31, 2024[43]. - The company holds 117,602,000 shares of Town Health, representing about 1.74% of its total issued share capital[44]. - The fair value of the company's securities investment in Jiangxi Yimai Sunshine Group Co., Ltd. reached approximately HKD 60.6 million, with an acquisition cost of about HKD 12.0 million[45]. - The investment in Jiangxi Yimai Sunshine Group contributed a fair value gain of approximately HKD 44.9 million during the year[45]. - The fair value of the investment in Jiangxi Yimai Sunshine Group accounted for about 11.3% of the company's total assets[45]. - The company has acquired a 16% stake in China Nüwa Pharmaceutical Group for approximately HKD 17.3 million, with a fair value of HKD 12.9 million as of December 31, 2024[48]. - The investment in Nüwa Pharmaceutical represents about 2.6% of the group's total assets, with a fair value loss of approximately HKD 4.4 million recognized during the year[48]. - Jiangxi Yimai Sunshine Group's investment in Shengzhou New Rui Wanma is valued at approximately HKD 29.9 million, accounting for about 5.9% of total assets[49]. Operational Strategies and Market Conditions - The group has been actively enhancing cooperation with suppliers and end customers to improve sales and marketing capabilities amid market challenges[9]. - The group launched pharmaceutical chemical reagent products in China during 2024, contributing to revenue growth despite initial lower gross margins[9]. - The demand for the group’s second-generation cephalosporin product decreased due to stricter antibiotic management policies in various regions of mainland China[9]. - The group plans to seek new distribution rights for products to enhance its product portfolio and improve long-term sustainable development[21]. - The group aims to enhance its local distribution network and sales and marketing capabilities to strengthen its competitive advantage in China[22]. - The group will focus on reallocating resources to core business development in the distribution and trade of pharmaceuticals and related products in China[23]. - The group anticipates ongoing pressure on drug prices due to national volume-based procurement policies, which may impact future profitability[20]. - The group will continue to monitor national policy guidelines and adapt to market changes to maximize shareholder returns[10]. Governance and Management - The company has a strong management team with over 19 years of experience in the pharmaceutical distribution industry, led by CEO Wang Qiukin[85]. - The board consists of six members, including three executive directors and three independent non-executive directors[146]. - The company has complied with the corporate governance code, except for a deviation regarding the roles of the Chairman and CEO being held by the same person[142]. - The company has established a dividend policy that considers various factors, including cash levels and expected financial performance, without a predetermined dividend payout ratio[138]. - The company has implemented anti-corruption and reporting policies to enhance internal fairness awareness[144]. - The company has established a compensation policy to attract and retain executives, considering market salary levels, individual performance, and work experience[157]. - The nomination committee is responsible for reviewing the board's structure, size, and composition, and for recommending candidates for election at the annual general meeting[159]. - The board is responsible for formulating business strategies and overall policies while monitoring management performance[146]. Environmental, Social, and Governance (ESG) Initiatives - The report covers the company's performance in environmental, social, and governance (ESG) aspects for the year ending December 31, 2024[183]. - The company's carbon footprint for the reporting year was 89.3 tons of CO2 equivalent, an increase of approximately 22.3% compared to 73.0 tons in 2023[194]. - The company has implemented an internal environmental policy to manage and reduce its operational impact on the environment[191]. - The company encourages stakeholder feedback on its environmental, social, and governance policies and performance[189]. - The company has no significant harmful waste due to its operations not involving manufacturing processes[196]. - The company emphasizes efficient use of natural resources, focusing on energy-saving policies related to electricity, water, gasoline, and harmless waste[199]. - The company adopts a prudent approach to resource protection, implementing policies to minimize environmental impact during operations[200].

Financial Performance - For the fiscal year ending December 31, 2024, the group recorded revenue of approximately HKD 93.9 million, an increase of about 87.1% compared to HKD 50.2 million in 2023[2] - The gross profit for the same period was approximately HKD 11.5 million, a decrease of about 10.9% from HKD 12.9 million in 2023[2] - The net loss attributable to the owners of the company was approximately HKD 31.0 million, an increase of about 39.6% from a loss of HKD 22.2 million in 2023[2] - The company reported a basic and diluted loss per share of HKD 1.86 for the year, compared to HKD 1.33 in 2023[3] - The company experienced a fair value gain on financial assets of HKD 3.9 million, compared to HKD 0.4 million in the previous year[3] - The company reported a pre-tax loss of HKD (32,060,000) for the year, compared to a pre-tax loss of HKD (22,342,000) in 2023, indicating a worsening financial performance[11] - The company reported a net loss attributable to shareholders of HKD 31,013,000 in 2024, compared to a loss of HKD 22,170,000 in 2023, indicating a worsening of approximately 39.9%[24] - The net loss for the year was approximately HKD 31.0 million, an increase of about 39.6% compared to approximately HKD 22.2 million in the previous fiscal year[53] Revenue Breakdown - Revenue from the distribution and trade of pharmaceutical and related products was HKD 88,708,000, up from HKD 42,852,000 in the previous year, marking a growth of 106.7%[11] - The marketing and promotion services segment generated revenue of HKD 5,237,000, down from HKD 7,302,000 in the previous year, reflecting a decline of 28.3%[11] - The total revenue for the year ended December 31, 2024, was HKD 93,945,000, a significant increase from HKD 50,154,000 in 2023, representing an increase of 87.2%[7] - Revenue from the pharmaceutical and related products distribution and trade segment was approximately HKD 88.7 million, representing a growth of about 106.8% from approximately HKD 42.9 million in the previous fiscal year[41] Assets and Liabilities - As of December 31, 2024, the group's asset-to-liability ratio was zero, unchanged from 2023[2] - The total assets decreased slightly from HKD 477.9 million in 2023 to HKD 486.0 million in 2024[4] - Trade and other payables decreased significantly from HKD 26.2 million in 2023 to HKD 5.3 million in 2024[4] - Trade receivables increased to HKD 104,704,000 in 2024 from HKD 94,399,000 in 2023, representing an increase of about 10.5%[25] - The company's equity as of December 31, 2024, is approximately HKD 471.0 million, down from HKD 480.3 million in 2023[79] Dividends - The board of directors does not recommend the payment of a final dividend for the year ending December 31, 2024[2] - The company did not declare or recommend any dividends for the years ending December 31, 2024, and December 31, 2023[23] - The Board does not recommend the payment of a final dividend for the current year[93] Impairment and Expenses - The total impairment loss on trade and other receivables was HKD (5,712,000), with inventory impairment loss amounting to HKD (13,114,000) for the year ended December 31, 2024[11] - The impairment loss on trade and other receivables increased to HKD 5,712,000 in 2024 from HKD 4,067,000 in 2023, an increase of approximately 40.4%[22] - Administrative expenses were approximately HKD 14.7 million, a slight increase of about 0.7% from approximately HKD 14.6 million in the previous fiscal year[48] - Total employee costs rose to HKD 8,719,000 in 2024 from HKD 8,063,000 in 2023, an increase of about 8.1%[22] Investments - The fair value of the investment in Town Health International Medical Group Limited is approximately HKD 28.8 million, representing about 5.7% of the group's total assets as of December 31, 2024[55] - The group confirmed a fair value gain of approximately HKD 44.9 million from its investment in Jiangxi Yimai Sunshine Group during the year[58] - The group purchased 16% of the issued share capital of China Nüwa Pharmaceutical Group Co., Ltd. for approximately HKD 17.3 million[59] - The fair value of the investment in the target company is approximately HKD 12.9 million, with a fair value loss of about HKD 4.4 million confirmed during the year[59] - The group holds approximately 39% equity in Shengzhou New Sharp Wanma, with a fair value of about HKD 29.9 million, representing approximately 5.9% of the group's total assets as of December 31, 2024[61] Legal and Governance - The company is involved in a legal case initiated by the Securities and Futures Commission (SFC) regarding actions taken by two former directors, with a court hearing scheduled for May 11, 2021[82] - The SFC claims that the first and second defendants are responsible for illegal activities that resulted in a loss of information to company members, with a specific claim for HKD 26 million plus interest against the first defendant[83] - A court ruling on September 13, 2024, ordered the SFC to pay 75% of the legal costs incurred by the company, while the first and second defendants are responsible for 25%[86] - The ongoing appeal by the SFC seeks to overturn certain court decisions related to the case[87] - The company has established a Corporate Governance Committee to formulate and review corporate governance policies and practices[90] - The CEO, Ms. Wang Qiuqin, also serves as the Chairman of the Board, which constitutes a deviation from the corporate governance code[91] Future Outlook - The group plans to enhance its product portfolio by seeking distribution rights for new products and improving marketing strategies by 2025[36] - The group aims to strengthen its local distribution network and sales capabilities to enhance competitive advantages in China[37] - The group intends to focus on long-term growth by reallocating resources to core business areas and seeking potential acquisition opportunities[38] - The group anticipates ongoing price pressure on pharmaceutical products due to the continuation of national volume-based procurement policies[35]

Financial Performance - For the six months ended June 30, 2024, the group recorded revenue of approximately HKD 16,718,000, a decrease of about 46.1% compared to HKD 31,016,000 for the same period in 2023[1]. - The net loss attributable to the owners of the company for the six months ended June 30, 2024, was approximately HKD 4,088,000, a reduction of about 69.4% from HKD 13,357,000 in the same period of 2023[2]. - Total comprehensive expenses for the period amounted to HKD 15,052,000, down from HKD 31,276,000 in the same period of 2023[2]. - Basic and diluted loss per share for the period was HKD 0.24, compared to HKD 0.80 for the same period in 2023[2]. - The group reported a net loss before tax of HKD 4,083,000 for the six months ended June 30, 2024, compared to a net loss of HKD 13,357,000 for the same period in 2023[10][14]. - The loss for the period was approximately HKD 4,088,000, a decrease from a loss of approximately HKD 13,357,000 for the same period in 2023[46]. Revenue Breakdown - For the six months ended June 30, 2024, the total revenue was HKD 16,718,000, with HKD 12,116,000 from pharmaceutical product distribution and trading, and HKD 4,602,000 from marketing and promotion services[9]. - Revenue from the pharmaceutical product distribution and trading segment was HKD 12,116,000, down approximately 55.3% from HKD 27,124,000 in the same period last year[31]. - Revenue from marketing and promotion services increased by approximately 18.2% to HKD 4,602,000, compared to HKD 3,892,000 in the same period last year[32]. Assets and Liabilities - As of June 30, 2024, the group's asset-to-liability ratio was zero, unchanged from December 31, 2023[1]. - Non-current assets as of June 30, 2024, totaled HKD 121,608,000, an increase from HKD 113,407,000 as of December 31, 2023[3]. - Current assets amounted to HKD 373,616,000 as of June 30, 2024, slightly down from HKD 378,196,000 as of December 31, 2023[3]. - The company's total liabilities as of June 30, 2024, were HKD 5,759,000, consistent with HKD 5,795,000 as of December 31, 2023[3]. - The equity attributable to the owners of the company was HKD 468,671,000 as of June 30, 2024, down from HKD 480,253,000 as of December 31, 2023[3]. Expenses - The group incurred administrative expenses of HKD 5,867,000 and selling and distribution expenses of HKD 4,876,000 during the same period[9]. - Selling and distribution expenses were approximately HKD 4,876,000, a decrease of about 35.4% from approximately HKD 7,552,000 for the six months ended June 30, 2023[43]. - Administrative expenses were approximately HKD 5,867,000, a slight increase of about 0.9% compared to approximately HKD 5,814,000 for the six months ended June 30, 2023[44]. Investments and Acquisitions - The group acquired properties, plants, and equipment amounting to approximately HKD 567,000,000 during the period, compared to HKD 43,000,000 for the six months ended June 30, 2023[17]. - The group acquired 16% of the issued share capital of China Nüwa Pharmaceutical Group Co., Ltd. for HKD 17,280,000 on May 16, 2024[48]. - The investment in China Nüwa Pharmaceutical is classified as a financial asset measured at fair value through other comprehensive income, reflecting a long-term investment strategy[48]. - The group has invested approximately HKD 14,529,000 in Shengzhou New Sharp Wanlin during the reporting period[59]. Legal and Governance - The group is involved in a legal case initiated by the Securities and Futures Commission regarding past directors' responsibilities, with a claim for HKD 26 million plus interest[63][64]. - The company has adopted its own corporate governance code in accordance with the principles and rules set out in the Corporate Governance Code under Appendix C1 of the Listing Rules[66]. - The company has confirmed that all directors have complied with the required standards of the standard code for securities transactions during the period[67]. - There are no significant litigations, arbitrations, or claims involving any member of the group as of June 30, 2024, and no unresolved or potential significant litigations are anticipated[65]. Market and Operational Insights - The group faced a decline in demand for its second-generation cephalosporin products due to the implementation of stricter antibiotic management policies in mainland China[27]. - The group operates a network of customers across various regions in China, including Zhejiang, Jiangsu, Hainan, Hunan, and Guangdong provinces[26]. - The group continues to monitor macroeconomic changes and trends in the healthcare industry to balance growth and risk[56]. - The group has not made any significant investments, acquisitions, or disposals during the reporting period[51]. Employee and Operational Metrics - Employee costs for the period amounted to approximately HKD 4,022,000, compared to HKD 3,843,000 for the six months ended June 30, 2023[61]. - The group has 23 employees as of June 30, 2024, unchanged from December 31, 2023[61]. Currency and Risk Management - The group faces foreign currency risk due to operations in China, with most transactions denominated in RMB[62]. - The group does not consider the potential impact of exchange rate fluctuations on its profit and loss to be significant, thus no foreign currency hedging policy is adopted[62].

Financial Proceeds Utilization - The net proceeds from the rights issue amount to approximately HKD 330.0 million, with about HKD 39.6 million remaining unutilized as of December 31, 2023[1]. - The company plans to utilize approximately HKD 39.6 million of the unutilized proceeds for acquiring equity in pharmaceutical companies engaged in the pharmaceutical business overseas and/or domestically in China, as well as for general working capital[2]. - The company has allocated approximately HKD 17.3 million of the unutilized proceeds for the acquisition of 16% of the issued share capital of China Nüwa Pharmaceutical Group Co., Ltd., which primarily operates in the domestic pharmaceutical business in China[10]. - The remaining unutilized proceeds of approximately HKD 22.3 million are planned to be used as general working capital for the group[10]. - The company intends to expand the proposed use of unutilized proceeds to cover general operations and domestic pharmaceutical business in China, excluding overseas pharmaceutical operations[9]. Business Strategy and Market Focus - The company aims to enhance its product portfolio and distribution channels to better capture opportunities in the domestic Chinese market[9]. - The company has adopted a cautious approach in seeking suitable business or investment opportunities due to economic instability and the impact of the COVID-19 pandemic[9]. Corporate Governance - The board of directors includes key members such as Chairwoman Wang Qiuxin and other executive directors[7]. - The company emphasizes that the supplementary information provided does not affect the contents of the annual report, which remains unchanged[6]. - The announcement clarifies that the Hong Kong Stock Exchange and the Hong Kong Exchanges and Clearing Limited bear no responsibility for the accuracy or completeness of the announcement[8].

Financial Performance - For the fiscal year ending December 31, 2023, the group recorded revenue of approximately HKD 50.2 million, a decrease of about 44.1% compared to HKD 89.8 million in 2022[8] - The gross profit for the fiscal year was approximately HKD 12.9 million, a slight decrease of about 2.3% from HKD 13.2 million in 2022[8] - The net loss attributable to the company's owners was approximately HKD 22.2 million, significantly reduced by about 71.5% from a loss of HKD 77.9 million in 2022[8] - The total revenue for the year was approximately HKD 50.2 million, a decrease of about 44.1% compared to approximately HKD 89.8 million for the year ended December 31, 2022[36] - The cost of sales for the year was approximately HKD 37.2 million, a decrease of about 51.4% from approximately HKD 76.5 million for the year ended December 31, 2022[37] - Gross profit decreased by approximately HKD 0.3 million or about 2.3% to approximately HKD 12.9 million, with a gross margin of approximately 25.8%, an increase of 11.0 percentage points compared to the previous year[38] - Other net losses for the year were approximately HKD 1.3 million, a significant reduction from a loss of approximately HKD 6.7 million in the previous year[39] - Selling and distribution expenses were approximately HKD 14.1 million, a decrease of about 26.6% from approximately HKD 19.2 million for the year ended December 31, 2022[40] - Administrative expenses were approximately HKD 14.6 million, a decrease of about 28.4% from approximately HKD 20.4 million for the year ended December 31, 2022[41] - Trade and other receivables impairment losses were approximately HKD 4.1 million, compared to HKD 4.6 million in the previous year[43] Market Challenges - The group faced challenges due to the implementation of stricter management policies for antibacterial drugs in various regions of mainland China, impacting the demand for its main product, the second-generation cephalosporin[10] - The average price reduction for the first batch of national volume-based procurement was about 52%, with the maximum reduction reaching approximately 96%[21] - The ninth batch of national volume-based procurement, completed in November 2023, involved 41 drug varieties with an average price reduction of about 58%[22] Strategic Initiatives - The group actively strengthened cooperation with suppliers and end customers, such as hospitals, to enhance sales and marketing capabilities[10] - The company plans to seek new product distribution rights to enhance its product portfolio and improve long-term sustainable development in 2024[23] - The company aims to enhance its local distribution network and sales and marketing capabilities to strengthen its competitive advantage in China[24] - The company intends to focus on its core business in pharmaceutical product distribution and marketing services while seeking potential acquisition opportunities for higher shareholder returns[25] - The company continues to diversify its product portfolio and expand its distribution network to mitigate risks associated with reliance on suppliers and government policies in the Chinese pharmaceutical industry[35] Environmental and Social Governance - The company acknowledges the importance of environmental policies and has implemented measures to ensure efficient resource utilization[27] - The group has established an Environmental, Social, and Governance (ESG) team responsible for collecting relevant data and reporting to the board on ESG-related matters[193] - The board reviews the group's ESG performance annually and identifies related risks[193] - Key stakeholders, including employees, suppliers, distributors, and customers, participated in discussions to assess significant ESG issues for the year[195] - The group emphasizes the importance of energy management, water usage, gas emissions, and waste management in its ESG strategy[198] Corporate Governance - The company has a governance structure with independent non-executive directors overseeing key committees, ensuring compliance and strategic oversight[86][87] - The board of directors consists of seven members, including four executive directors and three independent non-executive directors[147] - The company has complied with the corporate governance code, except for the deviation regarding the roles of the Chairman and CEO being held by the same individual[142] - The company has established a written terms of reference for both the Audit Committee and the Corporate Governance Committee, which are published on the company's website[173][175] Legal Matters - The company is involved in a legal proceeding initiated by the Securities and Futures Commission, which claims damages against former directors totaling HKD 26 million[78] - The company is involved in legal proceedings regarding the acquisition of a 50% stake in SciTech International, with details disclosed in announcements dated February 14, March 20, June 26, and July 16, 2015[79] - As of December 31, 2023, there are no significant ongoing lawsuits, arbitrations, or claims involving the company, aside from those disclosed[80] Shareholder Information - The company has not made any changes to its share capital during the year, maintaining stability in its equity structure[98] - As of December 31, 2023, the total number of issued shares was 1,671,846,657, with significant shareholdings reported by directors, including 26.51% held by Chu Xueping[106] - The top five customers accounted for approximately 77.4% of the total revenue, with the largest customer contributing about 32.2%[113] Future Outlook - The company aims for long-term, stable, and sustainable growth while considering environmental, social, and governance issues[145] - Future strategies include potential market expansion and the development of new products and technologies to meet evolving customer needs[79]

Financial Performance - For the fiscal year ending December 31, 2023, the group recorded revenue of approximately HKD 50.2 million, a decrease of about 44.1% compared to HKD 89.8 million in 2022[3] - The gross profit for the same period was approximately HKD 12.9 million, down 2.3% from HKD 13.2 million in 2022[3] - The net loss attributable to the owners of the company was approximately HKD 22.2 million, a significant reduction of about 71.5% from a loss of HKD 77.9 million in 2022[3] - Basic and diluted loss per share was HKD 1.33 for the year ending December 31, 2023, compared to HKD 4.66 in 2022[4] - The company reported a loss attributable to shareholders of HKD 22,170,000 for the year 2023, compared to a loss of HKD 77,947,000 in 2022, indicating a significant improvement[33] - The group recorded a net loss of approximately HKD 22.2 million for the year, a decrease of about 71.5% compared to approximately HKD 77.9 million for the year ended December 31, 2022[67] Revenue Breakdown - Revenue from pharmaceutical product distribution and trade was HKD 42,852,000, down from HKD 83,754,000, indicating a decrease of about 49%[13] - Revenue from marketing and promotional services increased to HKD 7,302,000 from HKD 6,017,000, reflecting a growth of approximately 21%[13] - For the year ended December 31, 2023, total revenue from external sales and segment revenue was HKD 50,154,000, with HKD 42,852,000 from pharmaceutical products distribution and trade, and HKD 7,302,000 from marketing and promotion services[18] - The revenue from the pharmaceutical product distribution and trading segment decreased by approximately 48.8% to HKD 42.9 million from HKD 83.8 million in 2022[53] - The marketing and promotion services segment generated revenue of approximately HKD 7.3 million, an increase of about 21.7% compared to HKD 6.0 million in 2022[54] Assets and Liabilities - As of December 31, 2023, the group's asset-to-liability ratio was zero, unchanged from 2022[3] - Non-current assets decreased to HKD 113.4 million in 2023 from HKD 136.0 million in 2022[5] - Current assets decreased to HKD 378.2 million in 2023 from HKD 403.9 million in 2022[5] - Current liabilities decreased to HKD 5.6 million in 2023 from HKD 7.8 million in 2022[5] - The total equity attributable to the owners of the company was HKD 480.3 million in 2023, down from HKD 525.7 million in 2022[5] - The company’s total liabilities decreased to HKD 5,267,000 in 2023 from HKD 6,862,000 in 2022, indicating a reduction in financial obligations[37] Expenses - The company incurred total administrative expenses of HKD 14,629,000 and sales and distribution expenses of HKD 14,067,000 for the year ended December 31, 2023[18] - Selling and distribution expenses were approximately HKD 14.1 million, a decrease of about 26.6% from approximately HKD 19.2 million for the year ended December 31, 2022[60] - Administrative expenses were approximately HKD 14.6 million, down about 28.4% from approximately HKD 20.4 million for the year ended December 31, 2022[62] - Total employee costs decreased to HKD 8,063,000 in 2023 from HKD 18,360,000 in 2022, reflecting a reduction in overall expenses[30] Market Conditions and Future Outlook - The company anticipates ongoing pricing pressure on pharmaceuticals and potential market share losses, which may further reduce sales volume and average profit margins[40] - The group expects continued challenges in the market due to government reforms in the healthcare system, which may impact future performance[40] - The group plans to enhance its product portfolio and distribution channels to achieve sustainable development in 2024[47] - The group aims to focus on long-term growth by reallocating resources to core pharmaceutical distribution and marketing services in China[49] - The group will continue to seek potential acquisition opportunities to provide higher returns to shareholders[49] Corporate Governance and Management - The board of directors did not recommend the payment of a final dividend for the year ending December 31, 2023[3] - The board of directors is committed to maintaining good corporate governance standards, which are believed to provide a framework for business strategy and policy formulation[105] - The annual performance of the company has been reviewed by the Board of Directors' Audit Committee[112] - The executive directors include Ms. Wang Qiuqin, Mr. Huo Zhihong, Mr. Chu Xueping, and Ms. Zhou Wan[114] - The independent non-executive directors consist of Mr. Liang Zhijian, Ms. Li Qianming, and Mr. Shi Lixian[114] Investments and Acquisitions - The group aims to participate in the investment and construction of a medical industry park project in Shengzhou, Zhejiang Province, China[89] - The group will act as a passive investor in the target company and will not participate in its management or operational functions[90] - As of December 31, 2023, the group holds approximately 39% equity in the target company, with a fair value of approximately HKD 36.6 million, representing about 7.4% of the group's total assets[90] - The total amount of shareholder loans provided by the partners to the target company is now RMB 23.7 million, with contributions of approximately RMB 9.5 million (approximately HKD 11.0 million), RMB 9.2 million (approximately HKD 10.7 million), and RMB 5.0 million (approximately HKD 5.8 million) from Partner A, China New Sharp, and Partner B respectively[88] Miscellaneous - The company received government subsidies totaling approximately HKD 51,000 to support its development, which were recognized in the profit and loss statement[26] - The company reported bank interest income of HKD 2,968,000 for the year ended December 31, 2023, compared to HKD 2,655,000 in the previous year[26] - The deferred tax expense for the year ended December 31, 2023, was HKD 172,000, compared to HKD 2,339,000 in the previous year[27] - The group continues to monitor foreign exchange risks due to its operations in China, with no significant impact from currency fluctuations reported this year[80] - There have been no significant events affecting the group after December 31, 2023, up to the date of this announcement[110]

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，並明確表示概不就因本公告全 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。 New Ray Medicine International Holding Limited 新銳醫藥國際控股有限公司 （於百慕達註冊成立之有限公司） （股份代號：6108） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 之 中 期 業 績 公 告 財務概要 截至二零二三年六月三十日止六個月： • 截至二零二三年六月三十日止六個月，本集團錄得收益約73,039,000港 元，較二零二二年同期的收益約59,293,000港元增加約23.2%。 • 截至二零二三年六月三十日止六個月，本公司擁有人應佔虧損淨額約 為13,357,000港元，較二零二二年同期的本公司擁有人應佔虧損淨額約 ...

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，並明確表示概不就因本公告全 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。 New Ray Medicine International Holding Limited 新銳醫藥國際控股有限公司 （於百慕達註冊成立之有限公司） （股份代號：6108） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 公 告 二零二二年財務摘要 • 截至二零二二年十二月三十一日止年度，本集團錄得收益約89.8百萬港元 （二零二一年：約335.4百萬港元），較二零二一年減少約73.2%。 • 截至二零二二年十二月三十一日止年度，本集團毛利約為7.6百萬港元（二 零二一年：約28.5百萬港元），較二零二一年減少約73.3%。 • 截至二零二二年十二月三十一日止年度，本公司擁有人應佔淨虧損約為 ...

Financial Performance - For the six months ended June 30, 2022, the group recorded revenue of approximately HKD 59,293,000, a decrease of about 72.4% compared to approximately HKD 214,491,000 for the same period in 2021[7] - The group reported a net loss attributable to owners of the company of approximately HKD 21,378,000 for the six months ended June 30, 2022, compared to a net profit of approximately HKD 1,133,000 for the same period in 2021[7] - The group recorded a total comprehensive loss of approximately HKD 34,916,000 for the six months ended June 30, 2022, compared to a total comprehensive income of approximately HKD 23,830,000 for the same period in 2021[8] - Basic and diluted loss per share was HKD 1.28 for the six months ended June 30, 2022, compared to earnings per share of HKD 0.07 for the same period in 2021[8] - The company reported a loss before tax of HKD 21,378,000 for the six months ended June 30, 2022, compared to a profit before tax of HKD 1,133,000 in the same period of 2021[35] - The gross profit margin for the pharmaceutical products segment was negative, with a segment loss of HKD 19,000 for the six months ended June 30, 2022, compared to a profit of HKD 15,690,000 in 2021[35] - The company reported a net loss of approximately HKD 21,378,000 for the period, compared to a profit of approximately HKD 1,133,000 in the same period last year[84] Assets and Liabilities - As of June 30, 2022, the group's total assets less current liabilities amounted to HKD 617,133,000, a decrease from HKD 642,553,000 as of December 31, 2021[10] - The group's asset-liability ratio was zero as of June 30, 2022, compared to approximately 1.8% as of December 31, 2021[6] - Non-current assets increased to HKD 183,410,000 as of June 30, 2022, from HKD 178,012,000 as of December 31, 2021[10] - The company reported a total equity of HKD 608,049,000 as of June 30, 2022, a slight increase from HKD 605,924,000 a year earlier[11] - The company’s retained earnings decreased by HKD 5,815,000 during the reporting period[11] Cash Flow - For the six months ended June 30, 2022, the company reported a net cash inflow from operating activities of HKD 17,373,000, compared to a net cash outflow of HKD 48,588,000 in the same period of 2021[15] - The company generated a net cash inflow from investing activities of HKD 3,954,000, a decrease from HKD 53,464,000 in the previous year[15] - The company’s cash and cash equivalents stood at HKD 151,891,000 as of June 30, 2022, slightly up from HKD 150,153,000 as of December 31, 2021[10] Dividends - The board of directors did not recommend the payment of any interim dividend for the six months ended June 30, 2022, consistent with the previous year[7] - The company did not declare any interim dividends for the period, consistent with the previous year[41] Investments and Acquisitions - The company acquired 50% equity in Saike International for RMB 95 million and 15% equity in Weijian International for RMB 47.25 million, completed in 2015 and 2017 respectively[25] - The company has no equity interest in Weijian International as of June 30, 2022, following the sale of its shares[26] - The company completed the sale of a 25% stake in Sai Ke International for RMB 44.0 million (approximately HKD 54.1 million) on August 15, 2022[88] - A cooperation agreement was signed to establish a target company in China with an initial registered capital of RMB 50 million (approximately HKD 58.8 million), with the company contributing RMB 19.5 million (approximately HKD 22.9 million)[89] Operational Focus - The company operates primarily in China, focusing on the distribution and trade of pharmaceutical products and providing marketing and promotional services[32] - The report indicates that the company’s segments include pharmaceutical product distribution and trade, and marketing and promotional services[33] - The company plans to enhance its product portfolio by seeking distribution rights for new products and improving its marketing and promotion strategies in the second half of 2022[72] - The company aims to expand its local distribution network and enhance sales and marketing capabilities to strengthen its competitive advantage in China[73] - The company intends to focus on its core business of pharmaceutical product distribution and trade, reallocating resources for future development and seeking potential acquisition opportunities[74] Market Conditions - The ongoing national volume-based procurement is expected to continue, putting downward pressure on drug prices and potentially affecting the profitability of pharmaceutical distribution companies, including the company[71] Employee and Administrative Costs - Employee costs, including director remuneration, amounted to approximately HKD 14,303,000 for the period, compared to approximately HKD 3,858,000 for the six months ended June 30, 2021[107] - The group had 26 employees as of June 30, 2022, down from 27 employees as of December 31, 2021[107] - Administrative expenses increased by approximately 14.8% to about HKD 11,707,000, mainly due to share-based payment expenses of approximately HKD 7.3 million[81] Legal and Compliance - The company is involved in a legal case initiated by the Securities and Futures Commission, which claims that two former directors are responsible for misconduct that harmed the company, with a potential liability of HKD 26 million[138] - An independent committee was established to investigate the acquisitions and ensure compliance with internal control systems, with ongoing investigations as of the report date[110] - The company has committed to implementing all improvement recommendations from the internal control review conducted by an external advisor[114] Share Capital and Options - The company granted options for a total of 143,200,000 shares at an exercise price of HKD 0.287 per share[129] - The estimated fair value of the options granted on June 14, 2022, is approximately HKD 10,393,000[129] - The company's issued and fully paid ordinary shares remained at 1,671,847,000 shares with a total value of HKD 83,592,000 as of June 30, 2022[50] Financial Reporting and Standards - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2022, with no significant impact on its financial position or performance[31] - The audit committee is responsible for reviewing the company's financial statements and providing recommendations to the board, consisting of three independent non-executive directors[141] - The audit committee has reviewed the unaudited condensed consolidated financial statements for the period[142]

Financial Performance - For the year ended December 31, 2021, the group recorded revenue of approximately HKD 335.4 million, an increase of about 151.8% compared to HKD 133.2 million in 2020[6] - The gross profit for the same period was approximately HKD 28.5 million, representing a 161.5% increase from HKD 10.9 million in 2020[6] - The net loss attributable to the owners of the company was approximately HKD 2.8 million, a significant reduction of about 96.0% from a loss of HKD 69.7 million in 2020[6] - The group's revenue from pharmaceutical product distribution and trade increased by approximately 156.1% to HKD 329.6 million in 2021, compared to HKD 128.7 million in 2020[17] - The marketing and promotion services segment generated revenue of approximately HKD 5.8 million in 2021, up 28.9% from HKD 4.5 million in 2020[18] - The cost of sales for the year was approximately HKD 306.9 million, an increase of about 150.9% from approximately HKD 122.3 million for the year ended December 31, 2020[34] - Gross profit increased by approximately HKD 17.6 million or about 161.5% to approximately HKD 28.5 million, with a gross margin of approximately 8.5%, a slight increase of 0.3 percentage points from the previous year[35] - Other income for the year was approximately HKD 2.6 million, a decrease from approximately HKD 10.9 million in the previous year, primarily due to a reduction in foreign exchange gains[36] Revenue Drivers - The increase in revenue was primarily driven by higher sales volume of the second-generation cephalosporin product (1.0g) and increased demand for pharmaceutical products due to relaxed population movement restrictions in various cities in China[10] - The company participated in various academic promotional activities in China, contributing to the gradual increase in sales of its main product since resuming production and sales in September 2019[10] Loss Reduction Factors - The company reported a decrease in impairment losses on trade and other receivables during the year, contributing to the reduced net loss[10] - The company recorded no impairment losses on its equity interest in Saike International Medical Group during the year, contrasting with an impairment loss of approximately HKD 37.3 million in the previous year[10] - The reduction in net loss was primarily due to increased sales of the product (1.0g), leading to higher gross profit, a decrease in impairment losses on trade and other receivables, and no impairment losses recognized for the investment in Saike International during the year[42] Dividends and Shareholder Equity - The company did not recommend the payment of a final dividend for the year ended December 31, 2021, consistent with the previous year[6] - As of December 31, 2021, the group's shareholders' equity was approximately HKD 632.6 million, an increase from HKD 605.9 million in 2020[68] Market and Regulatory Environment - The average price reduction for drugs in the fourth batch of national volume-based procurement was about 52%, with the largest price drop reaching 96%[20] - The fifth batch of procurement involved 62 drug varieties, with an average price reduction of approximately 56%, and the largest drop being 98%[20] - The sixth batch of procurement included 42 insulin products, with an average price reduction of about 49%, and the largest drop being 74%[20] - The new procurement plan initiated by the Chinese government has led to price pressures on certain medical products, creating uncertainty for profitability in the medical device industry[51] Strategic Initiatives - The company plans to enhance its product portfolio by seeking distribution rights for new products to ensure sustainable growth[21] - The company aims to improve its local distribution network and sales capabilities to strengthen its competitive advantage in China[22] - The company will focus on reallocating resources to core business areas in pharmaceutical distribution and marketing services in China for long-term growth[23] - The company plans to diversify its product portfolio and expand its distribution network to mitigate risks associated with supplier and regulatory dependencies[33] Corporate Governance and Management - The company has a strong management team with over 16 years of experience in the pharmaceutical distribution industry, led by CEO Wang Qiukin[88] - The company has expanded its executive team, with new appointments including Chu Xueping, who has over 10 years of experience in the pharmaceutical industry[90] - The company has a commitment to corporate governance, with a dedicated committee chaired by the CEO[88] - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[166] Legal and Compliance Matters - The company is involved in a legal case where the Securities and Futures Commission claims that two former directors are responsible for misconduct, potentially leading to a payment of HKD 26 million plus interest[86] - The company has not been involved in any significant litigation, arbitration, or claims as of December 31, 2021, apart from the aforementioned case[87] - The company is currently facing an audit qualification due to insufficient evidence regarding related party transactions related to acquisitions, impacting the integrity of the consolidated financial statements for the year ended December 31, 2021[155][158] Risk Management - The company has a structured approach to risk management, with discussions on major risks and uncertainties included in the management discussion and analysis section[109] - The board is responsible for the internal control and risk management systems, which are designed to manage risks rather than eliminate them[197] - The internal control system includes identifying significant risks, assessing their likelihood, and determining risk management strategies[197] Shareholder Information - The company has a significant shareholder, Eagle Amber Holdings Limited, which owns approximately 25.52% of the company's issued shares[90] - As of December 31, 2021, major shareholders include Eagle Amber Holdings Limited with 426,672,000 shares, representing 25.52% of total issued shares[120] Training and Development - The company provides training materials to all directors regarding their duties and responsibilities under the latest legal developments[170] - The company has committed to gender equality and has provided fair recruitment, training, and promotion opportunities for all employees this year[185]