格隆汇8月14日丨奥星生命科技(06118.HK)公布，公司将于2025年8月26日召开董事会会议，以（其中包 括）审议及通过集团截至2025年6月30日止六个月的中期业绩及其发布，以及审议派发中期股息的建议 （如有）。 ...

主席兼行政總裁 何國強 （於開曼群島註冊成立之有限公司） （股份代號︰6118） 董事會會議通告 奧星生命科技有限公司（「本公司」，連同其附屬公司，「本集團」）之董 事（「董事」）會（「董事會」）謹此宣佈，董事會會議將於 2025 年 8 月 26 日（星期二）舉行，藉以（其中包括）考慮及批准本集團截至 2025 年 6 月 30 日止六個月之未經審核中期業績，以及考慮宣派中期股息（如有）。 代表董事會 奧星生命科技有限公司 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。 Austar Lifesciences Limited 奧星生命科技有限公司 香港，2025 年 8 月 14 日 於本公告日期，董事會包括四名執行董事何國強先生、何建紅先生、陳躍武 先生及周寧女士，一名非執行董事季玲玲女士，以及三名獨立非執行董事張 立基先生、趙凱珊女士及梁愷健先生。 ...

Core Viewpoint - Aoxin Life Technology (06118.HK) anticipates a significant profit increase for the six months ending June 30, 2025, projecting a profit attributable to shareholders of approximately RMB 23 million to 25 million, compared to RMB 5.88 million for the same period ending June 30, 2024 [1] Financial Performance - The expected profit growth is primarily attributed to strategic efficiency measures implemented by the company, particularly in optimizing administrative and research and development (R&D) expenditures [1] - The increase in other income is mainly due to foreign exchange gains recorded for the six months ending June 30, 2025 [1] Strategic Initiatives - The optimization of administrative and R&D expenditures is a result of the company's proactive measures in organizational streamlining and operational excellence [1] - These initiatives reflect a more rigorous resource allocation and enhance financial flexibility, allowing the company to redirect resources towards strategic growth areas [1] - The measures not only demonstrate short-term profitability but also establish a sustainable development model for long-term value creation [1]

此显著利润增长主要源于：本集团对策略性增效措施的专注落实，具体体现在行政及研究与开发(研发) 支出的优化;及其他收益增加，此增长主要来自截至2025年6月30日止6个月取得的汇兑收益。 智通财经APP讯，奥星生命科技(06118)发布公告，预期将取得截至2025年6月30日止6个月本公司拥有人 应占溢利约人民币2300万元至2500万元，而截至2024年6月30日止6个月本公司拥有人应占溢利约为人民 币588万元。 ...

奥星生命科技(06118)发布公告，预期将取得截至2025年6月30日止6个月本公司拥有人应占溢利约人民 币2300万元至2500万元，而截至2024年6月30日止6个月本公司拥有人应占溢利约为人民币588万元。 此显著利润增长主要源于：本集团对策略性增效措施的专注落实，具体体现在行政及研究与开发(研发) 支出的优化;及其他收益增加，此增长主要来自截至2025年6月30日止6个月取得的汇兑收益。 ...

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。 Austar Lifesciences Limited 奧星生命科技有限公司 （於開曼群島註冊成立之有限公司） （股份代號︰6118） 正面盈利預告 本公告乃奧星生命科技有限公司（「本公司」，連同其附屬公司，「本集團 」）根據 香港聯合交易所有限公司證券上市規則（「上市規則」）第 13.09 條及內幕消 息條 文（定義見上市規則）而作出。 本公司董事（「董事」，各為一名「董事」）會（「董事會」）謹此知會本公司股 東及 潛在投資者，根據就本集團截至 2025 年 6 月 30 日止六個月之未經審核綜合 管理 賬目及就董事會目前可取得資料所作的初步評估，預期將錄得截至 202 5 年 6 月 30 日止六個月本公司擁有人應佔溢利約人民幣 2,300 萬元至 2, 500 萬元，而 截至 2024 年 6 月 30 日止六個月本公司擁有人應佔溢利約為人民幣 588 萬元。 此顯著利潤增長主要源於：(i) ...

Group 1 - The core viewpoint of the news is that Aoxing Life Science Technology has shown significant stock performance, with a recent increase of 38.46% and a year-to-date increase of 36.84%, outperforming the Hang Seng Index [1] - Aoxing Life Science Technology reported total revenue of 1.5 billion yuan for the year ending December 31, 2024, a decrease of 14.93% year-on-year, while net profit attributable to shareholders was 16.08 million yuan, an increase of 114.17% [1] - The company's gross margin stands at 20.08%, and its debt-to-asset ratio is 61.92% [1] Group 2 - Aoxing Life Science Technology is a technology-based pharmaceutical engineering solution provider operating in over 50 countries, collaborating with leading pharmaceutical companies to enhance human health [2] - The company employs over 1,600 staff globally, providing technology-backed pharmaceutical engineering solutions and ensuring drug safety and efficacy [2] - Aoxing has expertise in various fields, including clean utility engineering, pharmaceutical automation, and biopharmaceutical technology, supported by a professional team and high-quality manufacturing capabilities [2]

Financial Performance - Total revenue for 2024 was RMB 1,500,402 thousand, a decrease of 14.9% compared to RMB 1,763,734 thousand in 2023[9]. - Gross profit for 2024 was RMB 301,217 thousand, down 10.4% from RMB 336,050 thousand in 2023, with a gross margin of 20.1%[9]. - The company reported a profit attributable to owners of RMB 16,079 thousand for 2024, a significant recovery from a loss of RMB 113,473 thousand in 2023[9]. - In 2024, the company experienced a 14.9% decline in sales revenue, but managed to achieve a positive financial performance after significant losses in 2023[20]. - The net profit after tax for 2024 showed a turnaround from loss to profit, with order intake increasing by 12.1% compared to the same period in 2023[33]. - The total revenue for the year was approximately RMB 1,500.4 million, a decrease of about 14.9% compared to the previous year, primarily due to declines in the integrated process and packaging equipment systems and consulting, digitalization, and construction segments[81]. - The group recorded a profit before tax of approximately RMB 21.2 million, compared to a loss of RMB 34.4 million for the year ended December 31, 2023[106]. - The group reported a net profit of approximately RMB 13.6 million for the year, a significant improvement from a loss of RMB 151.3 million in the previous year[108]. Business Segments and Revenue Breakdown - Revenue contribution by business segment showed Integrated Process and Packaging Equipment & Systems at RMB 655,205 thousand (43.6%), Consulting, Digitalization and Construction at RMB 515,814 thousand (34.4%), and Life Science Equipment and Consumables at RMB 329,383 thousand (22.0%) for 2024[13]. - Revenue breakdown by business segment shows integrated process and packaging equipment systems at RMB 655.2 million (43.6%), consulting, digitalization, and construction at RMB 515.8 million (34.4%), and life science equipment and consumables at RMB 329.4 million (22.0%) for the year[82]. - The revenue from integrated process and packaging equipment systems decreased by RMB 207.9 million or 24.1% to RMB 655.2 million, mainly due to a reduction in uncompleted contracts[83]. - The revenue from consulting, digitalization, and construction decreased by RMB 81.5 million or 13.6% to RMB 515.8 million, attributed to a decline in uncompleted contract balances and delays in project starts[84]. - The revenue from life science equipment and consumables increased by RMB 26.0 million or 8.6% to RMB 329.4 million, driven by an increase in order volume and uncompleted contracts[85]. Assets and Liabilities - Total assets decreased by 3.5% to RMB 2,083,635 thousand as of December 31, 2024, compared to RMB 2,158,972 thousand in 2023[9]. - Net assets increased by 2.3% to RMB 793,468 thousand in 2024 from RMB 775,473 thousand in 2023[9]. - The asset-to-liability ratio improved to 33.9% in 2024 from 39.2% in 2023[9]. - The capital to debt ratio improved to approximately 33.9% as of December 31, 2024, compared to 39.2% as of December 31, 2023[113]. Market and Competitive Landscape - The biopharmaceutical sector is facing intense competition due to reduced capital expenditure, impacting profit margins significantly[21]. - The company is optimistic about order growth opportunities in 2025, contingent on market competition levels[21]. - Global expansion, particularly in sales, is a key action for 2025, with significant order breakthroughs in the US, South Korea, and India[22]. - The company faces intense competition in the pharmaceutical equipment and process systems market, which may lead to pricing pressure and impact financial performance[139]. Strategic Initiatives and Future Plans - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[16]. - The company consolidated six business divisions into three, aiming to adapt to market trends and improve resource allocation[20]. - The company aims to increase the share of its service business, which is less replicable and offers higher profit margins, by integrating environmental monitoring and testing systems into its service offerings in 2024[33]. - The company plans to restructure its business segments from six to three, aiming to enhance operational efficiency and adapt to competitive pressures starting in 2024[38]. - The company is focusing on continuous investment in technology and talent recruitment to strengthen its competitive advantage in the long term[38]. Research and Development - The company continues to invest in research and development to provide comprehensive solutions for existing and new customers[147]. - The group has developed 12 technology applications, including "Pharmaceutical Automation and Digitalization" and "Biopharmaceutical Processes and Technologies" to enhance its technical capabilities[74]. - The company is focusing on the development of microneedle drug delivery systems, which are gaining traction in the market due to their safety and efficacy[32]. - The application of artificial intelligence (AI) and machine learning (ML) in drug discovery is accelerating, creating opportunities for technological collaboration and digital investment[32]. Operational Efficiency and Cost Management - Selling and marketing expenses decreased by RMB 35.4 million or 21.2% to approximately RMB 131.9 million, mainly due to reductions in personnel costs and travel expenses[96]. - Administrative expenses decreased by approximately RMB 26.5 million or 19.8% to RMB 107.2 million for the year ended December 31, 2023, primarily due to reductions in personnel costs, professional fees, and auditor remuneration[99]. - The company emphasizes cost management to ensure project profit margins, with risks associated with project duration and labor costs[141]. Corporate Governance and Compliance - The company has adopted a corporate governance code to enhance management standards and protect shareholder interests[186]. - The company has confirmed compliance with the corporate governance code throughout the year, except for a deviation noted in the section regarding the chairman and CEO[193]. - The company’s board of directors has confirmed the independence of all independent non-executive directors, in accordance with listing rules[168]. Employee and Organizational Structure - As of December 31, 2024, the group had 1,445 full-time employees, a decrease of 165 employees compared to December 31, 2023[116]. - Employee costs for the year were approximately RMB 402.6 million, a reduction of about 12.4% from RMB 459.8 million for the year ended December 31, 2023[116]. - Employee performance evaluations are conducted annually, with a focus on maintaining good relationships and competitive compensation[145]. Environmental and Social Responsibility - The company is committed to sustainable development and compliance with environmental regulations, minimizing its carbon footprint[149]. - The company participates in the national pension scheme operated by the Chinese government, ensuring compliance for eligible employees in China and mandatory provident fund contributions for employees in Hong Kong[180].

Revenue and Profitability - Revenue for the year ended December 31, 2024, was RMB 1,500,402 thousand, a decrease of 14.9% from RMB 1,763,734 thousand in 2023[3] - Profit from continuing operations for the year was RMB 13,572 thousand, compared to a loss of RMB 34,789 thousand in 2023[4] - The company recorded a net profit of RMB 16,545 thousand for the year, a significant recovery from a loss of RMB 164,504 thousand in 2023[6] - The company reported a basic and diluted earnings per share of RMB 0.03 for continuing operations, compared to a loss of RMB 0.06 in 2023[5] - The company reported a profit attributable to owners of RMB 16,079,000 for the year ended December 31, 2024, compared to a loss of RMB 113,473,000 for the previous year[38] Expenses and Costs - Research and development expenses were RMB 53,549 thousand, slightly down from RMB 55,332 thousand in the previous year[4] - Employee costs, including directors' remuneration, decreased from RMB 459,799 thousand in 2023 to RMB 402,632 thousand in 2024, a reduction of about 12.4%[29] - Sales and marketing expenses decreased by 21.2% to approximately RMB 131.9 million, mainly due to reductions in personnel costs and travel expenses[127] - Administrative expenses decreased by approximately RMB 26.5 million or 19.8% to RMB 107.2 million for the year ended December 31, 2023, primarily due to reductions in personnel costs, professional fees, and auditor remuneration[128] Assets and Liabilities - Total assets decreased to RMB 2,083,635 thousand from RMB 2,158,972 thousand in 2023, while total equity increased to RMB 793,468 thousand from RMB 775,473 thousand[7] - Total liabilities decreased from RMB 1,383,499 thousand in 2023 to RMB 1,290,167 thousand in 2024, representing a reduction of approximately 6.7%[8] - Non-current liabilities decreased significantly from RMB 205,812 thousand in 2023 to RMB 101,481 thousand in 2024, a decline of about 50.7%[8] - Current liabilities increased slightly from RMB 1,177,687 thousand in 2023 to RMB 1,188,686 thousand in 2024, an increase of approximately 0.9%[8] Revenue Segmentation - Revenue from integrated engineering solutions amounted to RMB 1,038,332 thousand, contributing significantly to total revenue[16] - Sales revenue from goods reached RMB 382,264 thousand, showing a strong performance in product sales[16] - Service revenue totaled RMB 79,806 thousand, indicating growth in service offerings[16] - Revenue from mainland China declined from RMB 1,681,099 thousand in 2023 to RMB 1,333,487 thousand in 2024, representing a decrease of about 20.7%[26] Strategic Initiatives and Market Focus - The company has no plans for new product launches or market expansions mentioned in the report[4] - The company expects to continue focusing on market expansion and new product development as part of its strategic initiatives moving forward[20] - The company is restructuring its business into three major groups to enhance competitiveness in a challenging market environment[68] - The company plans to invest in top talent and consultants, which may negatively impact short-term profit margins but is expected to strengthen competitive advantages in the long run[68] Operational Efficiency and Improvements - Other income increased to RMB 27,548 thousand from RMB 11,706 thousand in the previous year, indicating improved operational efficiency[4] - The total expenses for continuing operations decreased from RMB 1,784,005 thousand in 2023 to RMB 1,491,810 thousand in 2024, a reduction of about 16.4%[28] - The company has implemented over 600 improvement suggestions and completed more than 90 improvement activities in 2024[79] Research and Development - The company incurred research and development expenses of RMB 55,332 thousand for the fiscal year ending December 31, 2023, indicating a commitment to innovation[22] - The group has developed 12 technology applications, including "Pharmaceutical Automation and Digitalization" and "Biopharmaceutical Processes and Technologies" to enhance its technical capabilities[104] Future Outlook - The company anticipates significant growth in GLP-1 drugs, antibody-drug conjugates, and autoimmune disease drugs by 2025[61] - The company is optimistic about the CGT industry, with ongoing investments in research and development for new products and services in this field[110] - The company plans to implement strategies focused on value-driven competition and global market expansion to enhance profitability and sustainable growth[126] Corporate Governance and Compliance - The audit committee, consisting of two independent non-executive directors and one non-executive director, reviewed the group's financial statements for the year[155] - The group's auditor confirmed that the figures in the preliminary results announcement are consistent with the audited financial statements[157] Shareholder Communication - The company expresses gratitude to shareholders and stakeholders for their support and acknowledges the efforts of all employees[159] - No dividends are recommended for the current year, consistent with the previous year[150]

[Company Information](index=2&type=section&id=Company%20Information) This chapter provides an overview of Austar Life Sciences Technology Co., Ltd. (Stock Code: 6118), including its listing location, board members, committee structures, company secretary, authorized representatives, principal bankers, registered office, and principal places of business, offering investors a summary of its governance structure and basic contact details - The company is incorporated in the Cayman Islands, listed on The Stock Exchange of Hong Kong Limited with **stock code 6118**[3](index=3&type=chunk)[5](index=5&type=chunk) - The Board of Directors comprises executive, non-executive, and independent non-executive directors, with established committees for audit, remuneration, nomination, corporate governance, and risk management[5](index=5&type=chunk) - Principal places of business are located in Shanghai, People's Republic of China, with a key operational presence in Hong Kong[5](index=5&type=chunk)[6](index=6&type=chunk) [Financial Highlights](index=4&type=section&id=Financial%20Highlights) The Group's financial performance in the first half of 2024 shows a 23.8% year-on-year decrease in revenue, but successfully turned losses into profits, recording a pre-tax profit of RMB 9,186 thousand and basic earnings per share of RMB 0.01, with a slight improvement in gross profit margin and debt-to-asset ratio Financial Highlights for H1 2024 (RMB thousand) | Metric | H1 2024 | H1 2023 (Restated) | Change | | :--- | :--- | :--- | :--- | | Revenue | 700,919 | 919,457 | -23.8% | | Gross Profit | 145,417 | 186,933 | -22.2% | | Profit/(Loss) Before Income Tax | 9,186 | (6,394) | Turnaround to profit | | Profit/(Loss) Attributable to Owners of the Company from Continuing Operations | 5,877 | (7,379) | Turnaround to profit | | Gross Profit Margin | 20.75% | 20.33% | +0.42pp | | Basic Earnings/(Loss) Per Share from Continuing Operations | RMB 0.01 | (RMB 0.01) | Turnaround to profit | | Total Assets (at period-end) | 2,136,820 | 2,158,972 (Dec 31, 2023) | -1.02% | | Net Assets (at period-end) | 780,630 | 775,473 (Dec 31, 2023) | +0.67% | | Debt-to-Asset Ratio (at period-end) | 37.0% | 39.2% (Dec 31, 2023) | -2.2pp | - Basic earnings/(loss) per share is calculated based on the profit/(loss) attributable to owners of the Company and the weighted average number of shares outstanding for the six months ended June 30, 2024 and 2023, with no dilution of ordinary shares by the Company[7](index=7&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) This chapter provides an in-depth analysis of the Group's operating environment, business performance, strategic adjustments, and future outlook for the first half of 2024, highlighting order growth and a return to profitability despite a slow recovery in biopharmaceutical capital expenditure, achieved through business restructuring, focus on high-margin services, international expansion, and continuous R&D investment, detailing segment performance, financial position, human resources, and risk management [Market Review](index=6&type=section&id=Market%20Review) In the first half of 2024, the biopharmaceutical industry saw an unclear recovery in capital expenditure and geopolitical tensions affecting global supply chains, leading Chinese pharmaceutical companies to adopt cautious strategies and reduce new high-end projects; however, technological advancements in new drug R&D, production process optimization, digitalization, and personalized precision medicine continue to drive industry development, with rapid growth in the Antibody-Drug Conjugate (ADC) sector, policy benefits for traditional Chinese medicine, strong demand for GLP-1 agonists, and new opportunities from upgraded regulations in the blood product industry - The recovery of capital expenditure investment in the biopharmaceutical industry is unclear, with a significant decrease in the number of new high-end projects in China[9](index=9&type=chunk) - The Antibody-Drug Conjugate (ADC) industry continues to grow rapidly, with Chinese enterprises becoming core global players through fast-follower strategies[9](index=9&type=chunk) - The new EU GMP Annex 1 and China's anticipated accession to PIC/S are expected to drive a new round of industrial upgrades in China's sterile preparation industry, creating more business opportunities[9](index=9&type=chunk) - The application of artificial intelligence technology in the pharmaceutical industry is growing, capable of shortening new drug R&D cycles, saving costs, and improving efficiency[9](index=9&type=chunk) - The traditional Chinese medicine industry shows immense development potential, influenced by favorable policies such as the update of the medical insurance catalog and the National Medical Products Administration's active promotion of traditional Chinese medicine injections[9](index=9&type=chunk) - GLP-1 agonists (e.g., Semaglutide and Tirzepatide) for controlling type 2 diabetes and obesity are experiencing rapid market demand, with China's complete peptide drug industry chain entering a favorable period for generic drug research[10](index=10&type=chunk) - The National Medical Products Administration's release of revised blood product annexes and a three-year smart supervision action plan is expected to drive demand for compliance consulting, informatization construction, and renovation[10](index=10&type=chunk) [Business Review](index=8&type=section&id=Business%20Review) The Group's revenue for the first half of 2024 was approximately RMB 700.9 million, a 23.8% year-on-year decrease, primarily due to fewer uncompleted contracts at the beginning of the period; however, the Group achieved a turnaround to net profit after tax and a 25.9% year-on-year increase in order intake by enhancing service business penetration, restructuring international business teams, continuously upgrading technical solutions, and consolidating six business segments into three (Integrated Process & Packaging Systems; Consulting, Digitalization & Construction; Life Science Equipment & Consumables) to address market challenges and improve competitiveness - The Group's revenue for the first half of 2024 was approximately **RMB 700.9 million**, a decrease of approximately **RMB 218.5 million** compared to the first half of 2023, primarily due to a reduction in uncompleted contracts at the beginning of the period caused by a roughly **32.7% decline in full-year orders in 2023**[11](index=11&type=chunk) - In the first half of 2024, the Group achieved a **turnaround to net profit after tax**, compared to a loss recorded in the first half of 2023[11](index=11&type=chunk) - Order intake for the first half of 2024 increased by **25.9%** compared to the same period in 2023[11](index=11&type=chunk) - The Group's strategy is to increase the share of service business to achieve higher profit margins and reduce reliance on fluctuations in client capital expenditure investments[11](index=11&type=chunk) - The international business team was restructured to secure more projects, with a significant increase in order acquisition expected from markets such as East Asia, Southeast Asia, India, the Middle East, North Africa, and South America[11](index=11&type=chunk) - The Group consolidated its six major business segments into three: (1) Integrated Process & Packaging Systems; (2) Consulting, Digitalization & Construction; and (3) Life Science Equipment & Consumables, to enhance its ability to adapt to the competitive environment[12](index=12&type=chunk) [Order Intake from Continuing Operations](index=9&type=section&id=Order%20Intake%20from%20Continuing%20Operations) The Group's total order intake from continuing operations for the first half of 2024 was approximately RMB 906.1 million, a year-on-year increase of 25.9%, with the Consulting, Digitalization & Construction business segment showing the most significant growth at 49.3% Order Intake by Business Segment for H1 2024 (RMB thousand) | Order Intake by Business Segment | H1 2024 | Share | H1 2023 | Share | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Integrated Process & Packaging Systems | 430,657 | 47.5% | 357,021 | 49.6% | 20.6% | | Consulting, Digitalization & Construction | 290,495 | 32.1% | 194,631 | 27.0% | 49.3% | | Life Science Equipment & Consumables | 184,947 | 20.4% | 168,096 | 23.4% | 10.0% | | **Total** | **906,099** | **100.0%** | **719,748** | **100.0%** | **25.9%** | - Total order intake increased by approximately **RMB 186.4 million** or **25.9%** compared to the same period last year[14](index=14&type=chunk) [Integrated Process & Packaging Systems](index=10&type=section&id=Integrated%20Process%20%26%20Packaging%20Systems%20(Business%20Review)) The Integrated Process & Packaging Systems business segment saw a 20.6% year-on-year increase in order intake to RMB 430.7 million, primarily driven by significant growth in filling line systems and freeze-drying systems across chemical, healthcare, and biopharmaceutical sectors, expanding into markets outside China, with powder and solid systems also increasing, despite a decline in fluid and bioprocess systems - Order intake was approximately **RMB 430.7 million**, an increase of approximately **RMB 73.6 million** or **20.6%** compared to the same period last year[15](index=15&type=chunk) - Filling line systems and freeze-drying systems recorded significant growth, expanding their coverage to chemical, healthcare, and biopharmaceutical sectors, and extending to regions outside China[15](index=15&type=chunk) - The effective date of EU Good Manufacturing Practice (GMP) Annex 1 created more business opportunities for plant renovation projects[15](index=15&type=chunk) [Consulting, Digitalization & Construction](index=10&type=section&id=Consulting%2C%20Digitalization%20and%20Construction%20(Business%20Review)) The Consulting, Digitalization & Construction business segment experienced a substantial 49.3% increase in order intake to RMB 290.5 million, mainly due to increased opportunities for automation control and monitoring systems in the chemical pharmaceutical sector and new business categories introduced by EU GMP Annex 1, driving growth in sterile pharmaceutical production equipment orders, despite a reduction in GMP compliance consulting service orders due to slower domestic biopharmaceutical investment, with future international regulatory inspections expected to generate more sales opportunities - Order intake was approximately **RMB 290.5 million**, an increase of approximately **RMB 95.9 million** or **49.3%** compared to the same period last year[16](index=16&type=chunk) - Automation control and monitoring systems gained more opportunities in the chemical pharmaceutical segment[16](index=16&type=chunk) - The impact of EU GMP Annex 1 significantly improved cross-team collaboration by introducing new business categories, increasing orders for sterile pharmaceutical production equipment[16](index=16&type=chunk) - Order intake for GMP compliance consulting services decreased, but the National Medical Products Administration's accelerated application for PIC/S membership and increased international inspections are expected to bring more sales opportunities[16](index=16&type=chunk) [Life Science Equipment & Consumables](index=11&type=section&id=Life%20Science%20Equipment%20and%20Consumables%20(Business%20Review)) The Life Science Equipment & Consumables business segment's order intake grew by 10.0% to RMB 184.9 million, primarily by strengthening sales team management, reorganizing the sales structure, and exploring sales opportunities in sterile chemical and complex pharmaceutical preparations, while also establishing a highly integrated sterile assurance consumables supply system and committing to enhancing R&D and production capabilities for its own-brand products - Order intake increased by approximately **RMB 16.9 million** or **10.0%** to approximately **RMB 184.9 million**[18](index=18&type=chunk) - Sales team management and organizational structure were strengthened to secure more orders, and sales opportunities in sterile chemical and complex pharmaceutical preparations were explored[18](index=18&type=chunk) - Established a highly integrated sterile assurance consumables supply system and committed to enhancing the core competitiveness of its own-brand products in domestic and international markets[18](index=18&type=chunk) [Uncompleted Contracts](index=11&type=section&id=Uncompleted%20Contracts) As of June 30, 2024, the Group's total value of uncompleted contracts was RMB 1,127,273 thousand, with the Consulting, Digitalization & Construction business segment accounting for the largest share at 50.5% Uncompleted Contracts by Business Segment as of June 30, 2024 | Business Segment | Number of Contracts | Share (Number of Contracts) | Period-end Value (RMB thousand) | Share (Period-end Value) | | :--- | :--- | :--- | :--- | :--- | | Integrated Process & Packaging Systems | 672 | 41.2% | 489,384 | 43.4% | | Consulting, Digitalization & Construction | 784 | 48.0% | 568,839 | 50.5% | | Life Science Equipment & Consumables | 177 | 10.8% | 69,050 | 6.1% | | **Total** | **1,633** | **100.0%** | **1,127,273** | **100.0%** | [Production, Execution and Organization](index=11&type=section&id=Production%2C%20Execution%20and%20Organization) The Group's AUSTAR UK factory achieved ISO 9001 and 14001 certifications, while Shanghai and Shijiazhuang manufacturing centers matured, and the Nanjing production team relocated to Shanghai to enhance production quality and efficiency, with continuous improvements to the Austar Production System, introduction of Toyota-style business practices, and Total Productive Maintenance, alongside the Shijiazhuang new production base focusing on contamination control and sterile transfer consumables, and the Project Execution Center delivering over 450 projects and establishing an after-sales service center in Nanjing for faster client response - The AUSTAR UK factory successfully passed **ISO 9001 and 14001 certifications** and obtained Alcumus SafeContractor accreditation[20](index=20&type=chunk) - The Shanghai and Shijiazhuang manufacturing centers have reached maturity, and the Nanjing production team has relocated to Shanghai, aiming to enhance the completeness, quality, technology, and effectiveness of the production system[21](index=21&type=chunk) - The Austar Production System continues to improve, incorporating Toyota-style business practices and Total Productive Maintenance, and offering Manufacturing Execution System (MES) QR code tracking services to clients[21](index=21&type=chunk) - The new Shijiazhuang production base focuses on contamination control consumables and sterile transfer consumables, having initially established R&D, R&D outcome commercialization, and commercial production capabilities[21](index=21&type=chunk) - The Project Execution Center executed over **450 projects** in the first half of the year and delivered **118 projects** across various sub-industries in mainland China, Taiwan, and Southeast Asia[21](index=21&type=chunk) - An after-sales service center was established in Nanjing to respond more quickly to service demands from clients in Southern China, with plans to establish more service centers in various regions across China[22](index=22&type=chunk) [Sales & Marketing](index=13&type=section&id=Sales%20%26%20Marketing) The Group employs an internal sales collaboration model and utilizes a business intelligence information system for customer relationship management, with a relatively mature sales process in China covering multiple areas; globally, European and Southeast Asian teams are being established, with significant order increases in India and Southeast Asia, while the Group actively participates in global exhibitions and industry conferences, and enhances brand awareness and customer inquiries through digital marketing efforts such as new brochures, social media, and videos - The internal sales collaboration model aims to encourage sales teams across different industries and product lines to support each other, providing more tailored solutions[23](index=23&type=chunk) - In terms of global expansion, teams have been recruited in Europe and Southeast Asia, leading to a significant increase in orders from India and Southeast Asia[24](index=24&type=chunk) - In the first half of 2024, the Group participated in **four global exhibitions** (e.g., Asia Pharma Expo, FEC Pharma, ACHEMA, CPHI & PMEC China) and organized **15 industry conferences**, enhancing brand awareness[24](index=24&type=chunk) - Digital marketing has been highly effective, with **24 new brochures** produced, **219 shared on the website**, **250 company news items released**, and **42 videos created**, generating over **190,000 clicks**[25](index=25&type=chunk) [Research & Development](index=14&type=section&id=Research%20%26%20Development) As of June 30, 2024, the Group holds 414 patents, with 21 new registered patents in the first half of the year, focusing R&D on biopharmaceutical core process equipment, high/low-pressure chromatography systems and synthesizers for peptides/small molecules/ADCs, optimization of online nitrogen filling systems for sterile APIs, small-batch production R&D for wet granulation and pellet coating systems, and cleanroom-specific cleaning robots; significant progress has also been made in localizing rapid transfer interface products, with stainless steel beta valves completed and alpha valves entering the sample manufacturing stage - As of June 30, 2024, the Group holds **414 patents**, with **21 new registered patents** obtained during the review period and **62 additional patents** currently under application[26](index=26&type=chunk) - Core biopharmaceutical process equipment has been developed, including upstream standard culture systems for yeast and E. coli, and downstream equipment[26](index=26&type=chunk) - Actively seeking collaboration and independently developing core process equipment such as high and low-pressure chromatography systems and peptide synthesizers for peptides, small molecules, and Antibody-Drug Conjugates[26](index=26&type=chunk) - The sterile API product line completed optimization and secondary development of its online nitrogen filling system, applied in scenarios such as sterile API aluminum container filling, featuring full automation, no laminar flow interference, and real-time oxygen content detection[26](index=26&type=chunk) - For R&D clients, small-batch production R&D for wet granulation and pellet coating systems was conducted, and R&D data analysis and process system enablement software were completed[26](index=26&type=chunk) - The freeze-drying product line completed optimization and secondary development of its guide-less robotic pusher system, which has been successfully commercialized and applied in client projects[27](index=27&type=chunk) - Performance testing for the newly developed cleanroom-specific cleaning robot has been largely completed, making it the industry's first intelligent device for such applications[27](index=27&type=chunk) - Significant progress has been made in localizing rapid transfer interface products, with stainless steel beta valves completed and redesigned, and alpha valves entering the sample manufacturing stage[28](index=28&type=chunk) [Outlook](index=15&type=section&id=Outlook) Starting in 2024, the Group has consolidated its business segments into three categories: Integrated Process & Packaging Systems, Consulting, Digitalization & Construction, and Life Science Equipment & Consumables, with a future focus on continuous manufacturing, ultra-large-scale digital production facilities, freeze-drying/filling/inspection technologies, global expansion, complex drugs, and advanced therapy medicinal products, while continuously investing in technological capabilities and service business development to address market challenges and seize growth opportunities - Starting from 2024, the Group has consolidated its six major business segments into three: (1) Integrated Process & Packaging Systems; (2) Consulting, Digitalization & Construction; and (3) Life Science Equipment & Consumables[29](index=29&type=chunk) - Continuous manufacturing is considered a disruptive technology in the pharmaceutical industry, expected to bring significant business opportunities in services and equipment in the medium to long term[31](index=31&type=chunk) - Austar will assist clients in achieving ultra-large-scale digital production facilities with an annual output of **10 billion solid dosage forms/capsules** by providing digital consulting and key equipment and systems[31](index=31&type=chunk) - In freeze-drying, filling, and inspection technologies, the Group will focus on product R&D and system integration across different product lines, aiming to become a comprehensive solution provider for liquid injectables[31](index=31&type=chunk) - The C-true visual inspection machine, utilizing unique "camera non-tracking" visual detection technology and AI deep learning, is expected to secure satisfactory orders in **2024**[33](index=33&type=chunk) - The Group will explore global expansion opportunities, particularly in providing turnkey solutions such as cleanroom engineering in regions like the Middle East and Southeast Asia[35](index=35&type=chunk) - In Pharma 4.0, the Group has created a Research & Manufacturing Operations Information Integration System (REMOIIS) platform to facilitate digital transformation[36](index=36&type=chunk) - The Life Science Equipment & Consumables business segment will focus on contamination control strategy consulting and plans to develop **five integrated application portfolios**[39](index=39&type=chunk) - The Group has established **12 technology application teams**, aiming to better integrate single product line technical capabilities into comprehensive technical solutions[42](index=42&type=chunk) - The service business is considered a significant growth driver for the Group due to its low working capital requirements, reliance on fixed human capital and streamlined processes, and difficulty for competitors to replicate, offering reasonable profit margin contributions[43](index=43&type=chunk) - The Group acquired a **40% stake in Nozzle**, a company producing core equipment for micron and nanoparticle homogenization, with revenue expected to increase significantly after clients successfully obtain new drug approvals[47](index=47&type=chunk) - The Advanced Therapy Medicinal Products (ATMP) sector is one of the main business growth drivers, and the Group actively assists clients in establishing compliant, lean, and flexible cell therapy equipment[48](index=48&type=chunk) [Integrated Process & Packaging Systems](index=15&type=section&id=Integrated%20Process%20%26%20Packaging%20Systems%20(Outlook)) The Integrated Process & Packaging Systems business segment will focus on advanced manufacturing and processes in the life sciences industry, providing turnkey solutions for liquid and solid systems, chemical synthesis and bioprocesses, and sterile and non-sterile processes, particularly for peptide and oligonucleotide drugs, while promoting continuous manufacturing technology, assisting clients in building ultra-large-scale digital production facilities, and conducting product R&D and system integration in freeze-drying, filling, and inspection technologies, aiming to become a comprehensive solution provider for liquid injectables - This segment aims to be a turnkey supplier with both technical and knowledge capabilities, providing services for liquid and solid systems, chemical synthesis and bioprocesses, and sterile and non-sterile processes[30](index=30&type=chunk) - Continuous manufacturing is a disruptive technology in the pharmaceutical industry, expected to bring significant business opportunities in services and equipment in the medium to long term[31](index=31&type=chunk) - Austar assists clients in achieving ultra-large-scale digital production facilities with an annual output of **10 billion solid dosage forms/capsules** by providing digital consulting and key equipment and systems[31](index=31&type=chunk) - In freeze-drying, filling, and inspection technologies, the Group will focus on product R&D and system integration across different product lines, including pre-filled syringe systems, high-speed liposome filling lines, ampoule product lines, liquid nitrogen freeze dryers, and fully automatic sterile filling systems[31](index=31&type=chunk) - The C-true visual inspection machine, utilizing unique "camera non-tracking" visual detection technology and AI deep learning, is expected to secure satisfactory orders in **2024**[33](index=33&type=chunk) [Consulting, Digitalization & Construction](index=17&type=section&id=Consulting%2C%20Digitalization%20and%20Construction%20(Outlook)) The Consulting, Digitalization & Construction business segment offers front-end engineering consulting, design, digitalization, automation and information systems, GMP compliance, facility construction project management, and turnkey solutions, leveraging its advanced project execution processes, pharmaceutical process knowledge, and information integration system platform; the Group will explore global expansion opportunities, particularly in the Middle East and Southeast Asia, to provide competitive "design-to-build" projects, with hospital high-end cell and gene therapy (CGT) translation platform facility design and construction as a growth driver, while its expertise in digitalization and regulatory compliance enables it to undertake challenging projects and promote digital transformation through the REMOIIS platform, also addressing increasing market demand for facility and equipment maintenance services, and applying its highly recognized GMP compliance and pharmaceutical quality management services to other life science industries, having successfully signed multiple integrated consulting service projects and anticipating digital transformation and energy-saving renovations as future trends to reduce costs and enhance efficiency - Services include front-end engineering consulting, conceptual and detailed design, digitalization, automation and information systems, GMP compliance and quality systems, facility construction project management, and facility turnkey solutions[35](index=35&type=chunk) - The Group's skills and knowledge gained in China enable it to handle various complex projects in other regions, offering highly competitive and cost-effective "design-to-build" projects, and will explore global expansion opportunities[35](index=35&type=chunk) - The design and construction of high-end Cell and Gene Therapy (CGT) translation platform facilities for hospitals is one of the growth drivers for this business segment[35](index=35&type=chunk) - In Pharma 4.0, the Group has created a complex Research & Manufacturing Operations Information Integration System (REMOIIS) platform to facilitate digital transformation[36](index=36&type=chunk) - Market demand for facility and equipment maintenance services is continuously increasing, and the Group possesses a strong and experienced service team to provide relevant services[36](index=36&type=chunk) - The GMP compliance and pharmaceutical quality management services provided by the Group are highly recognized in the biopharmaceutical industry in China and other Asian regions, and will be applied to other life science industries[36](index=36&type=chunk) - Successfully signed multiple integrated consulting service projects in consulting, digitalization, and construction, including with CSPC Pharmaceutical Group and Novo Nordisk, solidifying its leading position in the mid-to-high-end market[36](index=36&type=chunk) - Digital transformation and energy-saving renovations will be recent development trends, helping to improve production efficiency and reduce operating costs[37](index=37&type=chunk) [Life Science Equipment & Consumables](index=19&type=section&id=Life%20Science%20Equipment%20and%20Consumables%20(Outlook)) The Life Science Equipment & Consumables business segment dominates China's biopollution control and sterile assurance market and has launched its own-brand products, with a future focus over the next 3 to 5 years on contamination control strategy consulting and developing five integrated application portfolios covering cleaning and disinfection, personnel contamination control, environmental contamination monitoring, sterile protection and transfer solutions, and critical process system cleaning and corrosion protection; the Group will adopt strategies of agency distribution, own-brand products, and independent R&D to expand market share, particularly in cell therapy consumables and the integration of contamination control processes with advanced therapy medicinal product processes - This business segment holds a dominant position in China's biopollution control and sterile assurance market and has launched its own-brand products[39](index=39&type=chunk) - Over the next **3 to 5 years**, the focus will be on contamination control strategy consulting, with plans to develop **five integrated application portfolios**, including comprehensive cleaning and disinfection, personnel contamination control, environmental contamination monitoring, sterile protection and transfer solutions, and critical process system cleaning and corrosion protection[39](index=39&type=chunk) - Established a sales and technical cooperation relationship with CAPE Europe France, and will launch more rapid transfer interface products[40](index=40&type=chunk) - The strategic direction of this business segment lies in advanced therapies and advanced bioprocess technologies, focusing on consumables and containment control-related businesses[40](index=40&type=chunk) - Will adopt strategies of agency distribution, own-brand products, and independent R&D to expand market share, particularly in cell therapy consumables and the integration of contamination control processes with advanced therapy medicinal product processes[41](index=41&type=chunk) [Strong Technical Capabilities and Knowledge](index=20&type=section&id=Strong%20Technical%20Capabilities%20and%20Knowledge) The Group has developed and established 12 technology application teams covering pharmaceutical automation and digitalization, cleaning and sterilization, biopharmaceutical processes, containment technology, cleanroom/HVAC/EMS/BMS, freeze-drying/filling/inspection, biosafety technology, laboratory technology, pharmaceutical formulation technology, compliance and operational excellence, and analytical measurement technology, aiming to integrate single product line technical capabilities into comprehensive technical solutions to provide clients with the latest technological solutions - The Group has developed and established **12 technology applications** and is progressively building specific technology application teams, holding regular workshops to integrate technical capabilities[42](index=42&type=chunk) [Service Business Opportunities](index=21&type=section&id=Service%20Business%20Opportunities) The Group is enthusiastic about the development of its service business, as it requires less working capital compared to equipment and engineering systems, relies on fixed human capital and streamlined processes, is difficult for competitors to replicate, and can contribute reasonable profit margins; a growth acceleration team was established to actively increase service business revenue, with a more significant contribution to gross profit margin expected as the service business share increases - The service business requires less working capital, relies on fixed human capital and streamlined processes, is difficult for competitors to replicate, and can provide reasonable profit margin contributions[43](index=43&type=chunk) - Approximately two years ago, the Group established a dedicated growth acceleration team for the service business to more actively increase service business revenue[43](index=43&type=chunk) [Global Expansion](index=21&type=section&id=Global%20Expansion%20(Outlook)) The Group has recruited teams in Europe and Southeast Asia to directly handle sales opportunities, with the global sales team's proportion of sales order intake expected to gradually increase, supported by the development of more standardized core equipment over the past decade, which facilitates sales outside China, and a global project execution team that has achieved high client satisfaction and loyalty in the Middle East, North Africa, and Southeast Asia, demonstrating its professional project management capabilities - Teams have been recruited in Europe and Southeast Asia to directly handle sales opportunities, and the proportion of sales order intake from the global sales team is expected to gradually increase[45](index=45&type=chunk) - Over the past **10 years**, the Group has gradually developed more standardized core equipment in its product portfolio, which is more convenient for sales in some regions outside China than selling systems[45](index=45&type=chunk) - The global project execution team has achieved extremely high client satisfaction and loyalty in the Middle East, North Africa, and Southeast Asia[45](index=45&type=chunk) [Complex Drugs](index=21&type=section&id=Complex%20Drugs) Complex drugs encompass products with complex active ingredients, formulations, administration routes, or dosage forms, as well as drug-device combination products, with increasing attention on product technologies (e.g., nanoparticles, liposomes) and process challenges (e.g., sterile production, high-potency compound incorporation), despite only a few technologies currently being practical; the Group's 2022 acquisition of a 40% stake in Nozzle, a company producing core equipment for micron and nanoparticle homogenization, is expected to lead to significant revenue growth after clients' new drug approvals - Complex drugs are broadly defined, including products with complex active ingredients, complex formulations, complex administration routes, or complex dosage forms, as well as drug-device combination products[46](index=46&type=chunk) - The Group acquired a **40% stake in Nozzle** in **2022**, a company producing core equipment for micron and nanoparticle homogenization, with revenue expected to increase significantly after clients successfully obtain new drug approvals and transition to larger production scales[47](index=47&type=chunk) [Advanced Therapy Medicinal Products](index=22&type=section&id=Advanced%20Therapy%20Medicinal%20Products) With the implementation of new EU GMP regulations and cell and gene therapy process requirements, sterile assurance throughout the entire production process has become a critical consideration, and the Group, through collaboration between AUSTAR UK, CAPE Europe, and its Chinese manufacturing factories, aims to provide the most competitive sterile protection and assurance solutions globally; research and commercialization of new therapies, especially in cell and gene therapy, are key business growth drivers for Austar, as the Group actively assists clients in establishing compliant, lean, and flexible cell therapy equipment, offering engineering and process solutions from conceptual design to core process equipment, and building traceable automated and informatized solutions - The issuance and implementation of new EU GMP regulations and cell and gene therapy process requirements make sterile assurance throughout the entire production process a strictly critical consideration for equipment and systems engineering[48](index=48&type=chunk) - Through close collaboration between AUSTAR UK, CAPE Europe, and its Chinese manufacturing factories, the Group aims to provide the most competitive sterile protection and assurance solutions globally[48](index=48&type=chunk) - Research and commercialization of new therapies are among the main business growth drivers for life science service providers like Austar, especially in the field of cell and gene therapy technologies and processes[48](index=48&type=chunk) - The Group actively assists clients in establishing compliant, lean, and flexible cell therapy equipment, providing engineering and process solutions from conceptual design and cleanroom engineering to core cell therapy process equipment[48](index=48&type=chunk) [Operating Results](index=23&type=section&id=Operating%20Results) The Group's revenue for the first half of 2024 decreased by 23.8% year-on-year to RMB 700.9 million, primarily due to reduced revenue from Integrated Process & Packaging Systems and Consulting, Digitalization & Construction businesses; despite the revenue decline, the gross profit margin slightly improved to 20.7%, mainly driven by increased gross profit margins in Integrated Process & Packaging Systems and Life Science Equipment & Consumables, while sales and marketing expenses, administrative expenses, and R&D expenses all decreased, leading to a successful turnaround to a pre-tax profit of RMB 9.2 million - The Group's total revenue for the first half of 2024 was approximately **RMB 700.9 million**, a decrease of approximately **23.8%** compared to the same period last year[50](index=50&type=chunk) - The gross profit margin increased from approximately **20.3%** in the first half of 2023 to approximately **20.7%** in the first half of 2024, primarily due to increased gross profit margins in the Integrated Process & Packaging Systems and Life Science Equipment & Consumables business segments[55](index=55&type=chunk) - Sales and marketing expenses decreased by **30.6%** to **RMB 63.9 million**, administrative expenses decreased by **36.1%** to **RMB 51.2 million**, and R&D expenses decreased by **14.6%** to **RMB 23.5 million**[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) - The Group recorded a pre-tax profit of approximately **RMB 9.2 million** during the review period, compared to a loss of approximately **RMB 6.4 million** in the same period last year, achieving a turnaround to profitability[66](index=66&type=chunk) - Profit from continuing operations for the period was approximately **RMB 4.2 million**, compared to a loss of approximately **RMB 8.3 million** in the same period last year[67](index=67&type=chunk) [Revenue](index=23&type=section&id=Revenue) The Group's total revenue for the first half of 2024 was RMB 700.9 million, a 23.8% year-on-year decrease, with Integrated Process & Packaging Systems and Consulting, Digitalization & Construction revenues declining by 32.3% and 28.2% respectively, primarily due to fewer uncompleted contracts at the beginning of the period, while Life Science Equipment & Consumables revenue increased by 8.6%; mainland China remained the primary revenue source, accounting for 93.0% of total revenue, though its share slightly decreased, with other regions' revenue growing by 29.9% Revenue by Business Segment for H1 2024 (RMB thousand) | Business Segment | H1 2024 | Share | H1 2023 (Restated) | Share | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Integrated Process & Packaging Systems | 309,273 | 44.1% | 456,559 | 49.7% | -32.3% | | Consulting, Digitalization & Construction | 216,586 | 30.9% | 301,693 | 32.8% | -28.2% | | Life Science Equipment & Consumables | 175,060 | 25.0% | 161,205 | 17.5% | 8.6% | | **Total** | **700,919** | **100%** | **919,457** | **100.0%** | **-23.8%** | Revenue by Geographical Region for H1 2024 (RMB thousand) | Region | H1 2024 | Share | H1 2023 (Restated) | Share | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Mainland China | 652,139 | 93.0% | 881,900 | 95.9% | -26.1% | | Other Regions | 48,780 | 7.0% | 37,557 | 4.1% | 29.9% | | **Total** | **700,919** | **100.0%** | **919,457** | **100%** | **-23.8%** | [Integrated Process & Packaging Systems](index=23&type=section&id=Integrated%20Process%20%26%20Packaging%20Systems%20(Revenue)) Revenue for the Integrated Process & Packaging Systems business segment decreased by 32.3% from approximately RMB 456.6 million in the first half of 2023 to approximately RMB 309.3 million in the first half of 2024, primarily due to fewer uncompleted contracts at the beginning of the period - Revenue decreased by approximately **RMB 147.3 million** or **32.3%** to approximately **RMB 309.3 million**, primarily due to a reduction in uncompleted contracts at the beginning of the period[51](index=51&type=chunk) [Consulting, Digitalization & Construction](index=23&type=section&id=Consulting%2C%20Digitalization%20and%20Construction%20(Revenue)) Revenue for the Consulting, Digitalization & Construction business segment decreased by 28.2% from approximately RMB 301.7 million in the first half of 2023 to approximately RMB 216.6 million in the first half of 2024, primarily due to fewer uncompleted contracts at the beginning of the period - Revenue decreased by approximately **RMB 85.1 million** or **28.2%** to approximately **RMB 216.6 million**, primarily due to a reduction in uncompleted contracts at the beginning of the period[52](index=52&type=chunk) [Life Science Equipment & Consumables](index=24&type=section&id=Life%20Science%20Equipment%20and%20Consumables%20(Revenue)) Revenue for the Life Science Equipment & Consumables business segment increased by 8.6% from approximately RMB 161.2 million in the first half of 2023 to approximately RMB 175.1 million in the first half of 2024, primarily due to increased order intake during the review period - Revenue increased by approximately **RMB 13.9 million** or **8.6%** to approximately **RMB 175.1 million**, primarily due to increased order intake during the review period[53](index=53&type=chunk) [Cost of Sales](index=24&type=section&id=Cost%20of%20Sales) The Group's cost of sales for the first half of 2024 was RMB 555.5 million, a year-on-year decrease of 24.2%, consistent with the decline in revenue - Cost of sales decreased by approximately **RMB 177.0 million** or **24.2%** from approximately **RMB 732.5 million** in the first half of 2023 to approximately **RMB 555.5 million**, with the decrease primarily consistent with the decline in revenue[54](index=54&type=chunk) [Gross Profit and Gross Profit Margin](index=24&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) The Group's gross profit for the first half of 2024 was RMB 145.4 million, a year-on-year decrease of 22.2%, but the gross profit margin improved from 20.3% to 20.7%, primarily due to increased gross profit margins in the Integrated Process & Packaging Systems and Life Science Equipment & Consumables business segments, despite a decline in the Consulting, Digitalization & Construction business's gross profit margin due to intensified competition and client cost-reduction strategies