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 部或任何部份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。 Sinco Pharmaceuticals Holdings Limited 興科蓉醫藥控股有限公司 董事會會議召開日期 興科蓉醫藥控股有限公司（「本公司」）董 事（「董 事」）會（「董事會」）謹 此 宣 佈，本 公 司將於二零二五年八月二十七日（星 期 三）舉 行 董 事 會 會 議，藉 以（其 中 包 括）考 慮及批准本公司及其附屬公司截至二零二五年六月三十日止六個月之中期業 績 及 其 刊 發，並 考 慮 建 議 派 發 中 期 股 息（如 有）。 承董事會命 興科蓉醫藥控股有限公司 主席兼執行董事 黃祥彬 中 國 四 川，二 零 二 五 年 八 月 十 五 日 於 本 公 告 日 期，執 行 董 事 為 黃 祥 彬 先 生、雷 世 峰 先 生 及 黃 智 健 先 生；非 執 行 董 事 為 敬 歡 女 士 及 獨 立 非 執 行 董 事 ...

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 FF301 公司名稱: 興科蓉醫藥控股有限公司 (根據開曼群島法例註冊成立的有限公司) 呈交日期: 2025年8月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 06833 | 說明 | 普通股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.0001 | HKD | | 1,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.0001 | HKD | | 1,000,000 | 本月底法定/註冊股 ...

Financial Performance - The Group's revenue increased by 11.1% or RMB 281.2 million to RMB 2,821.3 million for the Reporting Period (2023: RMB 2,540.1 million) driven mainly by increased sales volume of human albumin solution[13] - Gross profit decreased by RMB 23.4 million to RMB 299.9 million, with a gross profit margin decline from 12.7% in 2023 to 10.6% due to rising costs outpacing revenue growth[13] - Net profit for the Group was RMB 42.0 million, a slight decrease of RMB 0.4 million compared to RMB 42.4 million in 2023, representing a 0.9% decline[13] - Basic and diluted earnings per share remained at RMB 0.02 for the Reporting Period, unchanged from 2023[13] - Profit before tax for the Reporting Period was RMB 98.9 million, slightly down from RMB 99.9 million in 2023[14] - The net profit margin for the year was 1.5%, down from 1.7% in 2023[14] - Revenue from sales of human albumin solution increased by approximately RMB 276.5 million, primarily due to higher sales volume[13] - Revenue from human albumin solution reached RMB2,782.7 million, an increase of approximately 11.0% or RMB257.6 million compared to 2023[40] - Revenue from medical beauty services amounted to RMB28.7 million, representing a growth of approximately 10.8% or RMB2.8 million compared to 2023[40] - Cost of sales increased to RMB2,521.4 million, up RMB304.6 million or 13.7% from RMB2,216.8 million in 2023[41] - Gross profit decreased to RMB299.9 million, down RMB23.4 million from RMB323.3 million in 2023, resulting in a gross profit margin decline from 12.7% to 10.6%[42] Dividends and Shareholder Information - The Board proposed a final dividend of HK$0.20 cents per ordinary share, totaling HK$4,000,000, down from HK$8,000,000 in 2023[13] - The final dividend declared for the year ended December 31, 2024, is HK$0.20 per ordinary share, totaling HK$4,000,000, a decrease from HK$8,000,000 in 2023[187] - The annual general meeting is scheduled for May 15, 2025, where shareholders will vote on the proposed final dividend[188] - The final dividend will be paid on or around June 3, 2025, subject to shareholder approval at the AGM[196] - The record date for entitlement to the final dividend is May 23, 2025[200] Assets and Liabilities - The Group's total assets increased from RMB1,424,333 thousand in 2022 to RMB1,890,678 thousand in 2023, reflecting a growth of 32.7%[18] - The total equity attributable to owners rose from RMB603,812 thousand in 2022 to RMB628,052 thousand in 2023, an increase of 4.0%[18] - The Group's cash and cash equivalents were RMB657,948 thousand in 2023, projected to decrease to RMB411,377 thousand in 2024[18] - Trade receivables decreased slightly to RMB509.7 million, down RMB26.3 million or 4.9% from RMB536.0 million in 2023[58] - Trade payables and bills payable as of December 31, 2024, totaled RMB 888.0 million, reflecting an increase of RMB 21.4 million from RMB 866.6 million as of December 31, 2023, mainly due to increased payables for human albumin injections[70] - The Group's total borrowings as of December 31, 2024, amounted to RMB 340.9 million, up from RMB 241.7 million in 2023, with current bank loans increasing to RMB 340.9 million from RMB 240.9 million[73] - The gearing ratio at the end of the reporting period was 57.5%, up from 47.2% in 2023, indicating an increase in the proportion of debt relative to equity[75] Operational Highlights - The annual batch release volume of human albumin reached 83.2 million bottles in 2024, representing a year-on-year increase of 6.5%[23] - The market share of imported albumin increased to 68.3% in 2024, enhancing the Group's industry influence and market share in this segment[23] - The Group's cold chain storage facilities in Chengdu officially commenced operations in 2024, significantly enhancing storage and distribution capacity[30] - The first phase of the cold chain storage facilities in Chengdu has commenced full operation, occupying 15,000 square meters, with a Phase II expansion expected to add 18,000 square meters by 2025[107] - The introduction of a digital supply chain system has improved operational efficiency and reduced logistics costs[108] Research and Development - The Group plans to deepen its investment in research and development for new medical aesthetic products while advancing the commercialization of existing projects[29] - The Girl Needle project is expected to complete clinical trials in the fourth quarter of 2025, indicating ongoing innovation in medical aesthetic products[28] - The Group's R&D efforts include advancing the Girl Needle project, with clinical trials expected to complete in Q4 2025[109] Management and Governance - The company has a diverse leadership team with extensive experience in pharmaceuticals, finance, and human resources management[151][153][158][160][164] - The Company has a strong management team with diverse backgrounds in finance, pharmaceuticals, and technical consulting[173][177][171][178] - The management team is committed to driving innovation and product development in the pharmaceutical sector[173][178] - The Company aims to expand its market presence and improve operational efficiency through strategic management[173][178] Market Strategy - The Group aims to optimize its market layout and strengthen its marketing network, particularly in second- and third-tier cities[24] - The Group aims to enhance market coverage of human albumin by deepening cooperation with major medical institutions and optimizing supply chain management[114] - The Group is focused on commercializing core products like Girl Needle and expanding into international markets, particularly Southeast Asia[115] - The Group intends to accelerate the commercialization of key medical aesthetic products, particularly in high-end markets in major domestic cities, while expanding into Southeast Asia[118] Corporate Social Responsibility - The Group is committed to corporate social responsibility, supporting public welfare and contributing to the healthcare industry[117][119] - The Group has not incurred any material costs for compliance with environmental laws during the reporting period[135] Risk Management - The Group is focused on risk management, identifying potential risks such as supplier relationships and exchange rate fluctuations[127][128] - The Group's largest supplier accounted for 99.78% of total products purchased during the Reporting Period, indicating a high dependency on a single supplier[198]

Summary of Conference Call Company and Industry Overview - The company specializes in blood products, particularly human albumin, and operates in the medical aesthetics sector. It has exclusive import rights for human albumin in China and has established a significant presence in the biopharmaceutical supply chain [1][2][3]. Key Points and Arguments Industry Dynamics - The demand for human albumin injection in China is steadily increasing, with a wholesale volume of 83.2 million bottles in 2020, reflecting a year-on-year growth of 6.5% [2]. - China is the second-largest blood product market, with over 60% of human albumin being imported, indicating a supply-demand imbalance [3]. - The company holds a 13.3% market share in the human albumin sector, emphasizing its competitive position in the Southwest region of China [3]. Financial Performance - In 2024, the company reported total revenue of approximately RMB 28.2 billion, with pharmaceutical sales contributing RMB 27.93 billion and medical aesthetics services generating RMB 28.7 million [7]. - The company’s total assets reached RMB 2 billion by the end of 2024, showcasing steady growth in its financial health [7]. Product Development and Innovation - The company is actively developing new products, including a PCL-based medical aesthetic product, and has initiated clinical trials for its "Shanv Needle" product, expected to complete trials by Q4 2025 [2][15][19]. - The company has established a cold chain logistics center in Chengdu, which is crucial for the storage and distribution of biological products [6][10]. Strategic Initiatives - The company is expanding its medical aesthetics business through acquisitions, such as the purchase of the De Yang De Mei Medical Aesthetic Hospital, which enhances its service offerings [5]. - Plans to penetrate Southeast Asian markets, starting with Singapore, are underway, with clinical registrations for new products being pursued [9][27]. Challenges and Risks - The company faces challenges related to rising procurement costs, which have impacted gross margins despite revenue growth [12][14]. - Regulatory hurdles and the competitive landscape in the blood product market pose ongoing risks, particularly regarding the importation of blood products [21][26]. Future Outlook - The company aims to enhance its product offerings and expand its market presence, particularly in the medical aesthetics sector, with a focus on innovative products like the "Shanv Needle" [19][29]. - There is a commitment to improving operational efficiency and risk management to ensure sustainable growth [8][24]. Additional Important Information - The company is focused on providing a robust career development platform for employees and aims to create value for shareholders while fulfilling social responsibilities [8]. - The company is exploring partnerships with suppliers to diversify its product offerings and mitigate risks associated with reliance on imports [21][26]. This summary encapsulates the key insights from the conference call, highlighting the company's strategic direction, financial performance, and industry context.

Financial Performance - The group's revenue increased by 11.1% or RMB 281.2 million to RMB 2,821.3 million for the year ended December 31, 2024, compared to RMB 2,540.1 million in 2023[3] - Gross profit decreased by RMB 23.4 million to RMB 299.9 million, with a gross margin decline from 12.7% in 2023 to 10.6% in the reporting period, primarily due to increased procurement costs from RMB depreciation[3] - Net profit for the period was RMB 42.0 million, slightly down from RMB 42.4 million in 2023, representing a decrease of 0.9%[3] - Basic and diluted earnings per share remained at RMB 0.02 for both 2024 and 2023[3] - The board proposed a final dividend of HKD 0.20 per share, down from HKD 0.39 per share in 2023, totaling HKD 4,000,000 compared to HKD 8,000,000 in the previous year[3] Assets and Liabilities - Non-current assets increased to RMB 488.2 million in 2024 from RMB 457.4 million in 2023, driven by growth in property, plant, and equipment[6] - Current assets rose to RMB 1,512.2 million in 2024 from RMB 1,433.3 million in 2023, with inventory significantly increasing to RMB 352.3 million from RMB 108.0 million[6] - Total liabilities increased to RMB 1,331.7 million in 2024 from RMB 1,232.0 million in 2023, with bank borrowings rising to RMB 340.9 million[6] - The company's equity attributable to owners increased to RMB 662.9 million in 2024 from RMB 628.1 million in 2023[7] - The total assets of the group as of December 31, 2024, amounted to RMB 2,000,423 thousand, up from RMB 1,890,678 thousand in 2023, indicating an increase of approximately 5.8%[20][21] Revenue Segments - Total revenue for the year ended December 31, 2024, reached RMB 2,821,321 thousand, with external sales from the import pharmaceuticals segment contributing RMB 2,792,619 thousand[17] - The import pharmaceuticals segment reported a profit of RMB 127,000 thousand, while the medical aesthetics segment incurred a loss of RMB 16,401 thousand[17] - The medical aesthetics services segment generated revenue of RMB 28,702 thousand, contributing to the overall performance of the group[17] - The import pharmaceuticals segment generated sales of RMB 2,792,619 thousand for the year ended December 31, 2024, compared to RMB 2,514,137 thousand in 2023, reflecting a growth of about 11.1%[23][24] Expenses and Costs - The cost of sold inventory rose to RMB 2,513,397,000 in 2024, up from RMB 2,207,433,000 in 2023, an increase of 13.8%[31] - Research and development expenses surged to RMB 19,000,000 in 2024, compared to RMB 8,291,000 in 2023, marking a significant increase of 129.5%[31] - Sales and distribution expenses were approximately RMB 63.9 million, a decrease of RMB 29.8 million from the same period in 2023, mainly due to reduced marketing and promotional expenses[52] - Administrative expenses increased to RMB 126.0 million, up RMB 17.1 million from 2023, driven by higher R&D expenses of RMB 11.0 million and increased employee costs of RMB 5.2 million[53] Cash Flow and Financing - The net cash flow from operating activities for the group was approximately RMB 232.9 million in 2024, a decrease from RMB 353.7 million in 2023, primarily due to an increase in inventory of RMB 244.3 million and an increase in trade receivables of RMB 72.0 million[64] - The net cash used in investing activities was approximately RMB 52.9 million in 2024, compared to RMB 63.6 million in 2023, mainly including investments in properties, plants, and equipment of RMB 35.2 million and other intangible assets of RMB 17.9 million[64] - The net cash flow from financing activities was approximately RMB 154.6 million in 2024, a significant improvement from a net cash outflow of RMB 189.7 million in 2023, primarily due to a reduction in pledged deposits of RMB 117.0 million and net proceeds from bank borrowings of RMB 59.2 million[64] Corporate Governance and Compliance - The company has maintained compliance with all relevant laws and regulations in the Cayman Islands, British Virgin Islands, Hong Kong, and China during the reporting period[85] - The company has adopted corporate governance principles to safeguard shareholder interests and enhance corporate value and accountability[95] - The audit committee consists of four members, all of whom are independent non-executive directors[100] Market Strategy and Expansion - The company plans to continue expanding its market presence in mainland China, where the majority of its non-current assets are located[24] - The company is enhancing its marketing network and collaborating with medical institutions at various levels to expand market coverage[41] - The company is accelerating the commercialization of core products like the "Girl Needle" and plans to expand into Southeast Asia to capture growing global demand[45] Employee and Operational Management - Total employee costs for the group amounted to RMB 61.4 million in the reporting period, compared to RMB 54.8 million in 2023[77] - The group has a total of 291 employees as of December 31, 2024[77] - The company has not faced significant difficulties in recruitment or experienced severe employee turnover during the reporting period[78] Environmental and Risk Management - The group has implemented measures to promote environmental protection and energy conservation, with no significant expenditures related to compliance with environmental laws during the reporting period[84] - The company emphasizes the importance of risk management for operational efficiency and effectiveness[80]

Revenue and Profitability - Revenue of the Group increased by 40.1% or RMB436.8 million to RMB1,526.9 million for the Reporting Period (six months ended 30 June 2023: RMB1,090.1 million) [5] - Revenue from sales of pharmaceutical products increased by approximately RMB439.7 million, while revenue from medical beauty services decreased by RMB2.9 million [6] - Net profit increased by approximately RMB4.3 million to RMB23.9 million (six months ended 30 June 2023: RMB19.6 million) [6] - Net profit attributable to owners of the Company amounted to RMB23.9 million, representing an increase of RMB4.3 million [6] - Basic and diluted earnings per share amounted to RMB1.17 cent for the Reporting Period (six months ended 30 June 2023: RMB0.965 cent) [6] - Revenue for the six months ended June 30, 2024, was RMB 1,526.9 million, an increase of 40.0% compared to RMB 1,090.1 million in the same period of 2023 [9] - Gross profit for the same period was RMB 173.2 million, up 13.6% from RMB 152.5 million year-on-year [17] - The net profit margin decreased slightly to 1.6% in 2024 from 1.8% in 2023, while the gross margin also fell to 11.3% from 14.0% [9] - Profit before tax increased to RMB 67,994,000, compared to RMB 42,769,000 in the previous year, reflecting a growth of about 58.9% [136] - Profit attributable to owners of the company was RMB 23,870,000, an increase from RMB 19,595,000, which is a rise of approximately 21.6% [136] Expenses and Costs - Gross profit increased by RMB20.7 million to RMB173.2 million for the Reporting Period, while the gross profit margin decreased from 14.0% to 11.3% due to increased purchase costs from RMB depreciation against the US dollar [6] - Selling and distribution expenses decreased to approximately RMB36.5 million, down by RMB10.6 million compared to the same period in 2023, mainly due to reduced market promotion expenses [37] - Administrative expenses increased to RMB61.2 million, up by RMB12.8 million from the corresponding period of 2023, primarily due to increased research and development expenses for medical beauty products [38] - The Group recorded a cost of sales of RMB1,353.6 million, an increase of RMB416.0 million or 44.4% compared to RMB937.6 million in the corresponding period of 2023 [34] - The depreciation of property, plant, and equipment increased to RMB 5,684,000 in the first half of 2024 from RMB 3,501,000 in the same period of 2023, reflecting a 62.3% increase [142] - The total current tax expense for the six months ended June 30, 2024, was RMB 45,846, significantly higher than RMB 23,924 for the same period in 2023, reflecting an increase of 92% [176] Assets and Liabilities - The Group's total assets as of June 30, 2024, were RMB 1,819.4 million, a decrease from RMB 1,890.7 million at the end of 2023 [9] - Total liabilities decreased to RMB 1,174.7 million from RMB 1,262.6 million, indicating improved financial stability [9] - As of June 30, 2024, trade receivables amounted to RMB688.1 million, an increase of RMB152.1 million from RMB536.0 million at the end of 2023, reflecting increased sales of pharmaceutical products [49] - Trade and bills payables decreased to RMB722.1 million, down by RMB144.5 million from RMB866.6 million at the end of 2023, mainly due to reduced payables for human albumin solution purchases [55] - The inventory balance decreased to RMB44.2 million, down by RMB63.8 million from RMB108.0 million at the end of 2023, attributed to a decrease in human albumin inventory [48] - The Group's total current liabilities decreased to RMB 1,144,743,000 as of June 30, 2024, down from RMB 1,232,037,000 at December 31, 2023, a reduction of about 7.1% [138] Cash Flow and Financing - The net cash used in operating activities during the reporting period was approximately RMB 268.0 million, a significant decrease from a net cash inflow of RMB 425.8 million in the same period of 2023 [62] - The net cash outflow in investing activities was approximately RMB 21.5 million, reduced by RMB 26.1 million compared to the corresponding period in 2023 [63] - The net cash from financing activities amounted to approximately RMB 115.6 million, a turnaround from a net cash outflow of RMB 188.5 million in the same period of 2023 [67] - Cash and cash equivalents at the end of the period were RMB 282.0 million, down from RMB 520.8 million at the end of 2023 [61] - The Group's liquidity management includes strict control over outstanding receivables and ongoing assessment of customer creditworthiness [69] - The Group's gearing ratio increased to 52.6% as of June 30, 2024, compared to 47.2% at the end of 2023 [60] Research and Development - The Group is actively expanding its presence in the medical aesthetics industry, with ongoing R&D projects and a focus on safety and effectiveness [13] - A collaboration with Beijing Nuokangda for developing polycaprolactone fillers has initiated clinical trials at nine research centers, with over 50% of subjects enrolled [20] - The Secret Needle project has completed preclinical animal tests and is progressing towards safety evaluation studies [21] - The clinical trials for the Girl Needle project are ongoing, with expected completion of subject enrollment in July 2024 and registration submission anticipated in the second half of 2025 [28] - The Group's R&D efforts will focus on safety, effectiveness, and reliability while diversifying its product pipeline [28] Corporate Governance and Compliance - The Group will continue to strengthen its internal control system and enhance risk management as part of its corporate governance strategy [30] - The Group has complied with all applicable laws and regulations in the Cayman Islands, British Virgin Islands, Hong Kong, and the PRC during the reporting period [92][94] - The Audit Committee reviewed the unaudited condensed interim results of the Group, ensuring oversight of the financial reporting system and internal control procedures [99] - The Group's risk management identifies key risks including reliance on a limited number of suppliers and exchange rate fluctuations, particularly as purchases from overseas suppliers are denominated in USD [85][89] Shareholder Information - The Directors resolved not to declare any interim dividend for the Reporting Period (six months ended 30 June 2023: Nil) [7] - The Group's total number of shares issued as of June 30, 2024, is 2,032,890,585 [113] - Mr. Huang holds a long position of 1,050,000,000 shares, representing approximately 51.65% of the total shares [109] - The Share Option Scheme allows for a maximum of 160,000,000 shares to be issued upon exercise of options, which is 7.87% of the issued share capital as of the report date [120] - The remaining life of the Share Option Scheme is approximately 1 year and 8 months as of June 30, 2024 [120]

Financial Data and Key Metrics Changes - The company's revenue increased by 40.1% to RMB 1.526 billion, with pharmaceutical sales contributing approximately RMB 439 million to this growth [1][2] - Gross profit rose by RMB 20.07 million to RMB 173 million, while net profit increased by RMB 4 million to RMB 23.9 million [1][2] Business Line Data and Key Metrics Changes - The pharmaceutical segment saw significant growth, particularly in human albumin sales, which reached RMB 440 million [2] - The aesthetic medicine segment is advancing with the clinical trial of the "girl needle" product, which has exceeded 50% enrollment as of June 30, 2023, and is expected to complete by mid-2025 [2][3] Market Data and Key Metrics Changes - The company holds a leading market position in blood products, with over 60% of the market relying on imports, indicating a strong demand for imported blood products [2][3] - The aesthetic medicine market is identified as having significant growth potential, particularly for injection products [2] Company Strategy and Development Direction - The company focuses on three main business segments: biopharmaceuticals, aesthetic medicine, and cold chain supply services, with plans to enhance its market position in each area [2][3] - The aesthetic medicine segment is seen as a high-potential market, with ongoing investments in product development and clinical trials [2] Management's Comments on Operating Environment and Future Outlook - Management noted that the demand for blood products is expected to grow, driven by increased awareness and recognition of these products post-pandemic [2] - The company anticipates stable growth in the blood products market, with a focus on maintaining its competitive edge through effective marketing and distribution channels [2][3] Other Important Information - The company has established a cold chain logistics service in Chengdu, which is expected to meet the growing demand for specialized cold chain services in the biopharmaceutical sector [2] - The company has acquired a medical beauty institution to enhance its research and development capabilities and direct access to end-users [2] Q&A Session Summary Question: Why was there no dividend declared this period? - Management explained that dividends are typically declared after annual audits and based on annual performance, indicating that future dividends will depend on cash flow and performance [2] Question: Will the focus shift more towards aesthetic medicine in the future? - Management clarified that while aesthetic medicine is a new and developing segment, the pharmaceutical segment remains stable and will continue to generate cash flow [2] Question: What are the company's advantages in the blood products sector? - Management highlighted the company's extensive experience, established marketing channels, and strong relationships with international suppliers as key competitive advantages [2] Question: What is the outlook for the human albumin business? - Management indicated that the market for human albumin is expected to grow, with increasing demand and reliance on imports, despite challenges in raw material sourcing [2] Question: Can you elaborate on the cold chain logistics business? - Management noted that the cold chain logistics segment is being developed to meet the growing demand for specialized services, particularly in the wake of the pandemic [2] Question: What is the current status of the aesthetic medicine business? - Management confirmed that the first product, the "girl needle," is on track for clinical trial completion and subsequent market entry, with confidence in its market potential [2]

Financial Performance - The group's revenue increased by 40.1% to RMB 1,526.9 million for the six months ended June 30, 2024, compared to RMB 1,090.1 million for the same period in 2023[1]. - Gross profit rose by RMB 20.7 million to RMB 173.2 million, while the gross profit margin decreased from 14.0% to 11.3% due to increased procurement costs from RMB depreciation[1]. - Net profit attributable to the company increased by RMB 4.3 million to RMB 23.9 million for the reporting period, compared to RMB 19.6 million for the same period in 2023[1]. - Basic and diluted earnings per share for the period were RMB 1.17, up from RMB 0.965 for the six months ended June 30, 2023[1]. - The company reported a pre-tax profit of RMB 67.994 million for the reporting period, compared to RMB 42.769 million for the same period in 2023[2]. - The pharmaceutical sales revenue for the reporting period reached RMB 1,515.8 million, an increase of RMB 439.7 million or 40.9% compared to the same period last year[28]. - The group’s gross profit was RMB 173.2 million, an increase of RMB 20.7 million compared to RMB 152.5 million in the same period of 2023, with a gross margin decrease from 14.0% to 11.3%[38]. - The cost of goods sold for the six months ended June 30, 2024, was RMB 1,349,568,000, compared to RMB 932,718,000 for the same period in 2023, reflecting an increase of approximately 44.5%[21]. - Income tax expense for the six months ended June 30, 2024, was RMB 44,124,000, compared to RMB 23,174,000 for the same period in 2023, indicating an increase of approximately 90.2%[22]. Revenue Segmentation - For the six months ended June 30, 2024, the total revenue from the import pharmaceutical sales segment was RMB 1,515,758 thousand, while the total revenue from the aesthetic medicine research and manufacturing segment was RMB 11,093 thousand, and the aesthetic services segment contributed RMB 1,526,851 thousand[10]. - The total revenue from customer contracts for the six months ended June 30, 2024, was RMB 1,090,126,000, compared to RMB 1,526,851,000 for the same period in 2023, representing a decrease of approximately 28.6%[16]. - Pharmaceutical sales accounted for RMB 1,076,097,000 of the total revenue for the six months ended June 30, 2024, while aesthetic medical services contributed RMB 14,029,000[16]. - The major customer contributed approximately RMB 257,142,000, representing over 10% of the total revenue for the six months ended June 30, 2024, compared to RMB 204,155,000 for the same period in 2023[18]. Assets and Liabilities - As of June 30, 2024, total assets amounted to RMB 1,819,354 thousand, with total liabilities of RMB 1,174,650 thousand, resulting in a net asset position[13]. - Total current assets decreased to RMB 1,349.093 million from RMB 1,433.283 million as of December 31, 2023[4]. - Total non-current assets increased to RMB 470.261 million from RMB 457.395 million as of December 31, 2023[4]. - The total liabilities as of December 31, 2023, were RMB 1,262,626 thousand, with total assets of RMB 1,890,678 thousand, indicating a stable financial position[14]. - The debt ratio increased to 52.6% as of June 30, 2024, from 47.2% on December 31, 2023, reflecting a rise in net liabilities to RMB 716.8 million against total equity of RMB 644.7 million[51]. Cash Flow - The net cash used in operating activities for the six months ended June 30, 2024, was RMB 268.0 million, compared to a net cash inflow of RMB 425.8 million for the same period in 2023, primarily due to increases in trade receivables and decreases in trade payables[52]. - The net cash used in investing activities was RMB 21.5 million for the reporting period, a decrease of RMB 26.1 million from RMB 47.6 million in the same period of 2023, mainly due to reduced payments for right-of-use assets[53]. - The net cash generated from financing activities was RMB 115.6 million for the reporting period, compared to a net cash outflow of RMB 188.5 million for the same period in 2023, primarily due to net bank borrowings[53]. - As of June 30, 2024, cash and cash equivalents totaled RMB 282.0 million, down from RMB 520.8 million on December 31, 2023, reflecting a net decrease of RMB 173.9 million[54]. Dividends and Shareholder Returns - The company did not declare any interim dividend for the reporting period, consistent with the previous period[1]. - The company declared a final dividend of HKD 0.39 per share for the year ended December 31, 2023, totaling RMB 7,218,000, compared to RMB 18,112,000 for the same period in 2022[23]. - The company has not declared any interim dividends for the reporting period ending June 30, 2023[70]. Operational Developments - The group has completed over 50% of the clinical trial enrollment for the "Girl's Needle" project, with completion expected in July 2024, one month ahead of schedule[30]. - The group is actively developing new medical aesthetic products, with ongoing research on new materials and medical devices aimed at wrinkle improvement[30]. - The group aims to enhance market expansion and optimize product structure to improve customer satisfaction and reduce costs and risks[29]. - The group plans to continue expanding its marketing network and enhance the management of its sales team to drive growth in the second half of 2024[32]. Employee and Human Resources - Employee costs totaled RMB 24.2 million for the reporting period, slightly down from RMB 24.4 million for the six months ended June 30, 2023[61]. - The group employed 303 employees as of June 30, 2024, maintaining stable staffing levels without significant turnover or labor disputes[61]. - The group emphasizes the importance of human resources as a key asset, providing competitive compensation and professional training programs to motivate employees[64]. Risk Management - The company identified key risks including reliance on a limited number of suppliers and potential currency fluctuations affecting costs and revenues[62]. - The management is actively involved in assessing significant business risks and implementing appropriate risk management measures[63]. Compliance and Governance - The audit committee is responsible for reviewing and monitoring the financial reporting system and internal control procedures of the group[72]. - The interim results announcement and the 2024 interim report will be published on the Hong Kong Stock Exchange and the company's website[72]. - The company has adhered to all applicable laws and regulations in the Cayman Islands, British Virgin Islands, Hong Kong, and China during the reporting period[66].

Financial Performance - The Group's revenue increased by 11.8% to RMB2,540.1 million for the Reporting Period (2022: RMB2,271.5 million), driven by a sales increase of approximately RMB249.8 million in human albumin injections[37]. - Net profit decreased by 39.0% to RMB42.4 million for the Reporting Period (2022: RMB69.5 million), primarily due to increased administration expenses related to the expansion in research and manufacturing of aesthetic medicine and medical beauty segments[36]. - Gross profit increased by RMB17.4 million to RMB323.3 million, while gross profit margin decreased from 13.5% in 2022 to 12.7% for the Reporting Period[28]. - Basic and diluted earnings per share were RMB0.02 for the Reporting Period (2022: RMB0.03)[35]. - The Group recorded revenue of RMB2,540.1 million for the Reporting Period, representing an increase of RMB268.6 million, or 11.8% compared to RMB2,271.5 million in 2022[100]. - The Group's net profit for the Reporting Period was RMB42.4 million, a decrease of RMB27.1 million compared to RMB69.5 million in 2022[109]. - Other income and gains amounted to RMB14.6 million, representing a decrease of RMB10.6 million compared to 2022, mainly due to a decrease in foreign exchange gains[104]. Use of Proceeds - Approximately 60% of the net proceeds from the 2022 Placing, amounting to approximately HK$116.9 million, will be allocated for strategic acquisitions and development of new projects/products in the medical aesthetic field[8][11]. - Approximately 40% of the net proceeds from the 2022 Placing, around HK$78.0 million, will be used for costs related to the development of polycaprolactone microsphere facial filler and its injection materials[14]. - The net proceeds from the 2022 Placing, after deducting commissions and related expenses, totaled approximately HK$194.9 million, with a net price of HK$1.22 per share[14]. - Approximately HK$133.1 million of the net proceeds from the 2022 Placing had been utilized, with unutilized net proceeds as of December 31, 2022, amounting to approximately HK$61.8 million[192]. - During the reporting period, approximately HK$31.0 million of net proceeds from the 2022 Placing had been used for various purposes[192]. Market and Product Development - The company anticipates that blood products will become one of the most prosperous sub-sectors in the pharmaceutical industry over the next 2-3 years due to increased demand and supply shortages[42]. - The company is focusing on innovation and development in the field of blood products to address changing healthcare needs due to demographic shifts[44]. - The Group's strategic layout in blood products, particularly human albumin, is expected to maintain strong market demand due to steady growth in national medical resource needs[178]. - The Group's aesthetic products research and development is progressing, with the Girl Needle project entering clinical trials scheduled for completion in the second half of 2025[80]. - The Group has completed the development and registration of the Girl Needle Type S, with clinical trials preparations currently underway[155]. - The Group's marketing strategy has shifted to a more targeted approach, focusing on specific customer areas and promotional service providers[149]. Operational Efficiency and Management - The Group maintains stable long-term relationships with suppliers and distributors by providing guidance, training, and support for marketing and promotional activities[3]. - The management is committed to effective risk management and internal control measures to enhance operational efficiency[22]. - The Group is committed to innovation and development, focusing on expanding new business areas while enhancing internal management and risk control capabilities[180]. - The Group's operational strategy includes strengthening relationships with suppliers to mitigate risks associated with supply chain dependencies[184]. - The Group has optimized its marketing network, focusing on agile and dynamic responses to market changes, enhancing overall operational efficiency[165]. Environmental Responsibility - The Group's operations do not have a material impact on the environment, with key environmental concerns related to electricity, water, and paper consumption[15]. - The Group has implemented measures to promote environmental protection and energy conservation, including a paperless office initiative and encouraging low-carbon commuting[15]. Employee Management - The Group's employee remuneration packages include basic salary, benefits, and performance-based incentives, aimed at motivating and retaining talent[3]. - The Group has not encountered significant difficulties in recruitment or experienced major employee turnover during the reporting period[1]. - The Group's employee remuneration policy includes annual performance appraisals, which influence salary reviews and bonus allocations based on performance criteria[182]. - The Group has adopted a share option scheme to incentivize and retain key employees for ongoing support in operations and development[183]. - As of December 31, 2023, the Group had a total of 278 employees, with total staff costs amounting to RMB 54.8 million, up from RMB 30.7 million in 2022[160]. Financial Position - Total assets increased to RMB1,890.7 million, while total liabilities rose to RMB1,262.6 million[57]. - The Group's gearing ratio increased to 47.2% in 2023 from 33.6% in 2022[121]. - Cash and cash equivalents at the end of 2023 were RMB 437.9 million, up from RMB 329.1 million at the end of 2022[112]. - The Group's net debt as of December 31, 2023, was RMB 562.4 million, compared to RMB 305.8 million in 2022[121]. - The balance of trade receivables amounted to RMB536.0 million, an increase of RMB185.8 million compared to RMB350.2 million at the end of 2022, attributed to increased sales and extended credit terms[109]. - The inventory balance increased to RMB108.0 million, up RMB19.9 million from RMB88.1 million at the end of 2022, mainly due to increased inventory of human albumin solution[109].

Financial Performance - The group's revenue increased by 11.8% to RMB 2,540.1 million, up from RMB 2,271.5 million in 2022, primarily driven by a rise in sales volume of human albumin injection, contributing approximately RMB 249.8 million to the revenue growth[25] - Gross profit rose to RMB 323.3 million from RMB 305.9 million in 2022, although the gross margin decreased from 13.5% in 2022 to 12.7% in the reporting period[25] - Net profit decreased by 39.0% to RMB 42.4 million, down from RMB 69.5 million in 2022, mainly due to increased administrative expenses from the expansion of the medical beauty drug research and manufacturing segment[25] - Basic and diluted earnings per share were RMB 0.02, compared to RMB 0.03 in 2022[25] - The group reported a decrease in other income and gains to RMB 14.6 million from RMB 25.2 million in 2022[27] - Administrative expenses increased to RMB 108.9 million from RMB 81.4 million in 2022, reflecting higher operational costs[27] - The group’s financial costs, excluding credit-related financial expenses, were RMB 13,380 thousand[59] - The company's net profit attributable to owners was RMB 42.4 million for 2023, with no adjustments made for potential ordinary shares[94] - The group's net profit for 2023 was RMB 42.4 million, a decrease of RMB 27.1 million compared to RMB 69.5 million in 2022[138] Assets and Liabilities - Non-current assets increased to RMB 457,395,000 in 2023 from RMB 406,927,000 in 2022, with significant growth in property, plant, and equipment, which rose to RMB 279,083,000 from RMB 258,109,000[15] - Current liabilities surged to RMB 1,232,037,000 in 2023, up from RMB 790,585,000 in 2022, indicating a substantial increase in trade payables and bank borrowings[15] - The company reported a net asset value of RMB 201,246,000 in 2023, a decrease from RMB 226,821,000 in 2022, indicating a tightening liquidity position[15] - Total assets amounted to RMB 628,052 million, an increase from RMB 603,812 million in the previous year[29] - The total liabilities of the group as of December 31, 2023, were RMB 1,262,626 thousand, compared to RMB 820,521 thousand in the previous year[61] - The company's total borrowings amounted to RMB 241.7 million as of December 31, 2023, with bank borrowings at RMB 241.7 million[161] Dividends - The company declared a final dividend of HKD 0.39 per share for the year ending December 31, 2023, down from HKD 0.98 in 2022, totaling approximately HKD 8,000,000 compared to HKD 20,000,000 in the previous year[2] - The board proposed a final dividend of HKD 0.39 per share, totaling approximately HKD 8 million, down from HKD 20 million in 2022[25] - The company plans to pay a final dividend of HKD 0.39 per share for the year ended December 31, 2023, down from HKD 0.98 per share in 2022, totaling approximately HKD 8,000,000[77] Operational Developments - The company has implemented measures to promote environmental sustainability without incurring significant expenditures related to compliance with environmental laws and regulations during the reporting period[1] - The company has three reportable operating segments, consistent with the previous year, indicating stable operational structure[24] - The company acquired Deyang Demai Medical Beauty Hospital Co., Ltd. to enhance its medical services segment, which is now recognized as an independent reporting business unit[56] - The company successfully commenced trial production of injectable polycaprolactone microsphere facial fillers, marking a significant advancement in its research and manufacturing segment[56] - The company is advancing clinical trials for its medical beauty product, with expectations to complete trials by the second half of 2025[107] - The company has decided to suspend research on the chemical drug "Sinco 1" due to technical challenges in domestic production equipment[104] - The company is enhancing its internal marketing team to improve product promotion activities, aiming to expand its network of opinion leaders in key therapeutic areas[81] - The group is developing new products, including the "Girl's Needle" and "Privacy Needle," with various stages of development completed, including clinical trial preparations[128] Cash Flow and Financial Management - The group's cash flow from operating activities was RMB 353.7 million, significantly up from RMB 75.1 million in 2022[148] - The net cash flow from operating activities was RMB 353.7 million, while cash flow used in investing activities was RMB (63.6) million for the reporting period[165] - Financial costs decreased by RMB 3.9 million to RMB 14.4 million due to reduced bank loan interest[136] Compliance and Governance - The audit committee is responsible for reviewing and monitoring the financial reporting system and internal control procedures of the group[4] - The company appointed a new auditor, Xianji Certified Public Accountants, effective December 13, 2022, following the resignation of Ernst & Young[5] - The company received a notification regarding potential internal control violations related to a transaction amounting to USD 13 million (approximately HKD 100 million) in January 2022[6] - The company has not early adopted any new or revised International Financial Reporting Standards that have been issued but not yet effective[35] - The company confirmed that the arrangement of having the same person serve as both chairman and co-CEO will not affect the balance of power and authority between the board and management[192] - The financial figures for the year ending December 31, 2023, have been agreed upon by the company's auditors, ensuring consistency with the audited financial statements[194] Market and Industry Outlook - The group anticipates strong growth in the pharmaceutical health industry driven by aging population, increased health awareness, disease spectrum changes, and new technology applications[129]