Financial Performance - Total revenue for the three months ended September 30, 2022, was HKD 588,842 thousand, a significant increase from HKD 131,242 thousand in the same period last year, representing a growth of 348%[8] - Gross profit for the three months ended September 30, 2022, was HKD 385,091 thousand, compared to HKD 77,051 thousand in the previous year, indicating a growth of 400%[8] - Operating profit for the three months ended September 30, 2022, reached HKD 314,260 thousand, up from HKD 32,179 thousand in the same period last year, reflecting an increase of 877%[8] - Profit before tax for the three months ended September 30, 2022, was HKD 316,554 thousand, compared to HKD 30,969 thousand in the previous year, marking a growth of 920%[10] - Net profit for the three months ended September 30, 2022, was HKD 257,246 thousand, a substantial increase from HKD 22,901 thousand in the same period last year, representing a growth of 1,025%[10] - Total revenue for the nine months ended September 30, 2022, was HKD 1,275,820 thousand, compared to HKD 505,401 thousand in the previous year, indicating a growth of 152%[8] - Gross profit for the nine months ended September 30, 2022, was HKD 736,313 thousand, up from HKD 293,609 thousand in the previous year, reflecting an increase of 151%[8] - Operating profit for the nine months ended September 30, 2022, reached HKD 571,206 thousand, compared to HKD 179,463 thousand in the previous year, indicating a growth of 318%[8] - Basic and diluted earnings per share for the three months ended September 30, 2022, were HKD 0.095, compared to HKD 0.003 in the same period last year, representing a significant increase[10] - The company reported a total comprehensive income of HKD 239,090 thousand for the three months ended September 30, 2022, compared to HKD 71,666 thousand in the previous year, marking an increase of 233%[10] Revenue Sources - For the three months ended September 30, 2022, the revenue from medical laboratory testing and health check services was HKD 584,077,000, a significant increase from HKD 128,827,000 in the same period of 2021, representing a growth of 353%[24] - The revenue from the manufacturing and sales of health-related and pharmaceutical products for the nine months ended September 30, 2022, was HKD 216,557,000, up from HKD 107,000 in the same period of 2021[24] - The revenue from insurance brokerage services for the nine months ended September 30, 2022, was HKD 6,360,000, slightly down from HKD 6,422,000 in the same period of 2021[24] - The revenue from medical laboratory testing and health check services increased from approximately HKD 491.61 million in Q3 2021 to approximately HKD 1,044.98 million in Q3 2022, representing a growth of 113%[15] - The revenue from the manufacturing and sales of health-related and pharmaceutical products surged from approximately HKD 107,000 in Q3 2021 to HKD 216.56 million in Q3 2022, marking an increase of 2,022.90%[54] Market Outlook and Strategy - The company has provided guidance for the next quarter, projecting a revenue increase of approximately 10% year-over-year[13] - New product launches are expected to contribute an additional 15% to revenue in the upcoming quarter[13] - The company is focusing on market expansion, particularly in the Asia-Pacific region, aiming for a 20% increase in market share[13] - Overall, the company remains optimistic about future growth, driven by strategic initiatives and market demand[13] Investments and Acquisitions - Research and development investments have increased by 25%, targeting innovative technologies to enhance product offerings[13] - The company is exploring potential acquisitions to strengthen its market position and diversify its product portfolio[13] - The company has initiated a clinical trial for its CAR-T therapy product LY007, which is the first of its kind approved in China for treating certain types of lymphoma[52] - The company signed an investment agreement for the construction of a boron neutron capture therapy cancer treatment center in Hainan Boao Lecheng International Medical Tourism Pilot Zone[69] - The company established a joint venture with Sure Metro Limited, acquiring 51% and 49% stakes in the joint venture company, which operates a medical laboratory in Hong Kong[71] Financial Health and Expenses - Interest expenses for the three months ended September 30, 2022, totaled HKD 949,000, a decrease from HKD 1,210,000 in the same period of 2021[27] - The administrative expenses for Q3 2022 were approximately HKD 157.56 million, an increase of 49.38% from approximately HKD 105.47 million in Q3 2021, primarily due to increased employee costs and R&D expenses[62] - The interest expenses for Q3 2022 decreased to approximately HKD 3.26 million from HKD 5.29 million in Q3 2021, attributed to a reduction in financing costs related to convertible bonds[63] Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[121] - The company confirmed compliance with the trading standards and the code of conduct for directors during the third quarter of 2022[116] - The company has maintained high standards of corporate governance and compliance with legal and regulatory requirements[117] - There were no conflicts of interest reported among directors or major shareholders during the third quarter of 2022[120] Shareholder Information - As of September 30, 2022, the company's director Liu Xiaolin holds approximately 54.97% of the company's shares, totaling 529,500,546 shares[90] - Genius Earn holds 529,500,546 shares, representing 54.97% of the company's total shares[95] - The company has a total of 22,428,571 shares held by Guoyuan Securities Investment (Hong Kong) Limited, representing 2.33% of the total shares[95] - The company has a total of 475,082,649 shares held by Guoyuan International Holdings Limited, representing 49.32% of the total shares[95] - The company has granted stock options totaling 6,960,000 shares, with an exercise price of HKD 1.68 and HKD 2.00 for different options[102]

Financial Performance - Total revenue for the six months ended June 30, 2022, was HKD 686,978, an increase of 83.8% compared to HKD 374,159 for the same period in 2021[5] - Gross profit for the six months ended June 30, 2022, was HKD 354,904, representing a 63.9% increase from HKD 216,558 in the prior year[5] - Operating profit for the six months ended June 30, 2022, was HKD 256,946, up 74.5% from HKD 147,284 in the same period of 2021[5] - Net profit for the six months ended June 30, 2022, was HKD 206,360, compared to HKD 108,990 for the same period in 2021, reflecting an increase of 89.4%[6] - Basic and diluted earnings per share for the six months ended June 30, 2022, were HKD 0.071, up from HKD 0.025 in the previous year[7] - The company reported a total comprehensive income of HKD 163,262 for the six months ended June 30, 2022, compared to HKD 110,911 in the same period of 2021[7] - The group reported a pre-tax profit of HKD 253,756,000, with income tax expenses amounting to HKD 47,396,000[32] - The company reported a profit of HKD 206,360,000 for the period, reflecting strong operational performance[35] Assets and Liabilities - Total assets as of June 30, 2022, amounted to HKD 892,928, an increase from HKD 706,782 as of December 31, 2021[9] - Total liabilities rose to HKD 352,492,000, up from HKD 240,887,000, indicating an increase of approximately 46%[12] - The company reported a total current liabilities of HKD 292,674,000, compared to HKD 227,395,000 in the previous year, marking an increase of about 29%[12] - As of June 30, 2022, total equity increased to HKD 540,436,000 from HKD 465,895,000 in the previous year, representing an increase of approximately 16%[11] - The total assets of the company reached HKD 892,928,000, up from HKD 706,782,000, indicating a growth of approximately 26%[12] Cash Flow - The company's net cash generated from operating activities for the six months ended June 30, 2022, was HKD 184,025,000, a significant recovery from a net cash outflow of HKD 32,647,000 in the same period last year[19] - Cash and cash equivalents as of June 30, 2022, were HKD 204,884, compared to HKD 150,554 at the end of 2021, indicating a growth of 36.1%[9] - Cash and cash equivalents at the end of the period increased to HKD 204,884,000 from HKD 133,167,000, reflecting a growth of approximately 54%[19] - The company experienced a net cash outflow from investing activities of HKD 122,600,000, an improvement compared to HKD 168,785,000 in the previous year[19] - The company’s financing activities resulted in a cash outflow of HKD 7,164,000, a decrease from HKD 50,206,000 in the same period last year, indicating improved cash management[19] Revenue Segments - Revenue from medical laboratory testing and health check services was HKD 460,906,000 for the six months ended June 30, 2022, compared to HKD 362,783,000 in the previous year, marking a 27.1% increase[30] - The segment revenue from pharmaceutical products reached HKD 215,402,000, up from HKD 107,000 in the same period last year, indicating a substantial growth[30] - The total income from insurance brokerage services was HKD 4,699,000 for the six months ended June 30, 2022, slightly up from HKD 4,767,000 in the previous year[30] Business Strategy and Expansion - The company plans to continue expanding its biotechnology platform and precision treatment services to enhance market presence and drive future growth[4] - The company is focused on expanding its medical laboratory testing services and health check services in Hong Kong and developing new healthcare-related products in China[22] - The company plans to expand its market presence and invest in new technologies to enhance its service offerings in the healthcare sector[36] - The company is focusing on strategic acquisitions to bolster its market position and enhance its product portfolio[36] Stock Options and Share Capital - The company has a share option scheme in place to reward eligible participants, with a maximum issuance limit of 10% of the company's issued shares at any time[76] - The company reported a total of 58,400,000 stock options granted during the period[82] - The company has granted stock options totaling 10,700,000 shares, which is approximately 1.11% of the total issued shares[154] - The total expense recognized for stock options granted by the company for the six months ended June 30, 2022, was approximately HKD 1,279,000, compared to HKD 3,669,000 for the same period in 2021[85] Corporate Governance - The company has established an audit committee to oversee financial reporting and internal controls, consisting of three independent non-executive directors[177] - The board of directors emphasizes the importance of corporate governance and has implemented measures to ensure compliance with legal and regulatory requirements[174] - The company has maintained compliance with the GEM listing rules regarding public float requirements as of the report date[178] Employee and Management Costs - The total employee cost for the interim period was approximately HKD 59,941,000, an increase from HKD 33,509,000 in the same period last year[150] - The company’s management compensation for the six months ended June 30, 2022, totaled HKD 4,869,000, a decrease from HKD 6,562,000 in the same period of 2021[97] Investments and Acquisitions - A non-binding term sheet was signed on January 26, 2022, for an investment of RMB 20,000,000 by an investor into a subsidiary, Shanghai Longyao[117] - An investment agreement was signed on February 28, 2022, for the establishment of a boron neutron capture therapy cancer treatment center in Hainan Boao Lecheng[119] - The company completed the sale of its subsidiary, Mingzhu Group, on April 4, 2022, to reallocate resources to higher growth potential businesses[127] Market Outlook - The company anticipates stable demand for diagnostic and health check services in the second half of 2022, with a potential rebound in demand for self-paid nucleic acid testing as entry restrictions are eased[129] - Asia Molecular Diagnostics is expected to commence operations in the second half of 2022, providing FDA-approved next-generation sequencing-based cancer diagnostic tests[130]

Financial Performance - Total revenue for the first quarter of 2022 reached HKD 384,157,000, a significant increase of 149.0% compared to HKD 154,169,000 in the same period last year[9] - Gross profit for the first quarter was HKD 189,732,000, representing a gross margin of 49.3% compared to 48.8% in the previous year[9] - Operating profit increased to HKD 133,261,000, up 242.5% from HKD 38,865,000 year-over-year[9] - Profit before tax for the quarter was HKD 132,044,000, a rise of 261.5% compared to HKD 36,585,000 in the prior year[9] - Net profit for the period was HKD 106,585,000, compared to HKD 27,239,000 in the same quarter last year, marking a growth of 290.5%[9] - Basic and diluted earnings per share increased to HKD 0.036, up from HKD 0.002 in the previous year[11] - The company reported a total comprehensive income of HKD 75,030,000 for the quarter, compared to HKD 26,746,000 in the same period last year[11] Revenue Breakdown - For the three months ended March 31, 2022, the revenue from medical laboratory testing and health check services was HKD 162,662 thousand, an increase from HKD 146,440 thousand in the same period of 2021, representing a growth of 11.5%[27] - The revenue from the manufacturing and sales of health-related and pharmaceutical products reached HKD 214,752 thousand, significantly up from HKD 107 thousand in the previous year, indicating a substantial increase[27] - Total income from securities trading amounted to HKD 384,088 thousand, compared to HKD 154,169 thousand in the same period last year, reflecting a growth of 149.5%[27] Expenses and Costs - Administrative expenses rose to HKD 54,340,000, compared to HKD 33,419,000 in the previous year, reflecting increased operational costs[9] - The company’s interest expenses for the first quarter of 2022 totaled HKD 1,217,000, down from HKD 2,280,000 in the first quarter of 2021[7] - The effective tax expense for the first quarter of 2022 was HKD 25,459,000, compared to HKD 9,346,000 in the same period of 2021[32] Market and Operational Developments - The company continues to focus on expanding its medical laboratory and health services in Hong Kong and China[18] - The demand for diagnostic and health check services surged due to the COVID-19 fifth wave, prompting the company to reactivate its fire eye laboratory for community testing[73] - The company anticipates a rebound in demand for self-paid nucleic acid testing and other medical diagnostic services as entry restrictions ease[73] - The company’s subsidiary, Shanghai Longyao, received approval for its CAR-T therapy product, LY007, to commence Phase I clinical trials, marking a significant advancement in its product pipeline[48] Share Capital and Ownership - As of March 31, 2022, the total issued share capital of the company was 963,231,150 shares, with a par value of HKD 0.10 per share[89] - Genius Earn holds a controlling interest with 529,500,546 shares, representing 54.97% of the total shares[19] - The total issued shares of the company as of March 31, 2022, is 963,231,150 shares[94] - Guoyuan Securities Investment (Hong Kong) holds 22,428,571 shares, accounting for 2.33% of the total shares[19] Corporate Governance - The audit committee, consisting of three independent non-executive directors, has reviewed the financial reporting procedures and internal controls for the first quarter of 2022[121] - The company emphasizes the importance of corporate governance and has implemented measures to ensure compliance with legal and regulatory requirements[118] - The company confirmed that all directors adhered to the trading standards and conduct codes during the first quarter of 2022[117] Strategic Initiatives - The company signed a non-binding term sheet for an investment of RMB 20,000,000 with an investor on January 26, 2022, although no formal agreement has been established yet[66] - A supplemental supply agreement was signed on February 15, 2022, increasing the annual cap for related transactions from HKD 80,000,000 to HKD 400,000,000, covering the supply of COVID-19 rapid antigen test kits[67] - The company established a joint venture with Sure Metro Limited, acquiring 51% and 49% stakes respectively, to operate a medical laboratory in Hong Kong[70]

Financial Performance - The company recorded revenue of approximately HKD 623,761,000 for the year ended December 31, 2021, a slight decrease of 4.88% compared to the previous year[7] - Gross profit for the year was approximately HKD 358,020,000, representing a year-on-year increase of 5.59%, with a gross margin of 57.40% compared to 51.71% in the previous year[7] - The company recorded a net profit of approximately HKD 132,572,000 for the year 2021, a decrease from HKD 167,623,000 in 2020, primarily due to increased competition in COVID-19 testing services and rising employee costs[41] - Revenue from COVID-19 nucleic acid testing services continued to account for over 85% of the segment's revenue in the fiscal year 2021, driven by ongoing demand due to the pandemic[24] - Revenue from the manufacturing and sales of healthcare and pharmaceutical products decreased from approximately HKD 869,000 in 2020 to about HKD 107,000 in 2021, primarily due to the economic impact of COVID-19[29] - Revenue from insurance brokerage services increased by 15.23%, from approximately HKD 6,875,000 in 2020 to about HKD 7,922,000 in 2021[31] - The logistics services segment recorded revenue of approximately HKD 6,712,000 in 2021, a significant increase from zero in 2020[32] - Administrative expenses rose by 18.56% to approximately HKD 157,081,000 in 2021, driven by increased employee costs and depreciation[39] COVID-19 Testing and Services - The company completed over 3,600,000 COVID-19 nucleic acid tests in 2021, an increase of over 50% compared to 2,300,000 tests completed in 2020[10] - The company is preparing for the post-pandemic era by adjusting its business direction in response to the evolving local nucleic acid testing market[7] - The emergence of the Omicron variant has led to sustained demand for nucleic acid testing services, with the company preparing for potential increases in demand as new variants arise[50] - The company entered into a total service agreement with BGI Genomics for COVID-19 testing services, enhancing its operational capabilities in this area[45] - The company has launched several new testing services in 2021, including cervical cell screening and COVID-19 neutralizing antibody testing, to meet increased health awareness[51] Research and Development - The company is advancing a new project aimed at commercializing the world's first approved precision radiotherapy technology for treating solid tumors[8] - The company has made significant progress in research and development of immune cell therapy as part of its precision treatment initiatives[8] - The company has initiated the first approved clinical trial for its investigational new drug LY007, a CAR-T therapy for relapsed CD20-positive B-cell non-Hodgkin lymphoma, marking a significant milestone in its R&D efforts[15] - The company is sponsoring two investigator-initiated trials for CAR-T products targeting CLDN18.2 and CD19, with ongoing patient recruitment expected to yield significant results[18] - The company is developing a next-generation nasal COVID-19 vaccine and conducting laboratory research on innovative COVID-19 testing technology platforms[51] - The company is advancing two additional CAR-T products in preclinical trials, targeting CLDN18.2 for pancreatic or gastric cancer and CD19 for B-cell non-Hodgkin lymphoma or leukemia[51] Corporate Governance - The company has adhered to the GEM Listing Rules Appendix 15 Corporate Governance Code for the fiscal year 2021[89] - The company has implemented corporate governance measures focusing on integrity towards shareholders, quality of information disclosure, transparency, and accountability[89] - The board is responsible for formulating the overall strategic development of the group and overseeing management, administration, and operations[97] - The company has established written terms of reference for its audit committee, remuneration committee, and nomination committee[98] - The company has confirmed that all directors complied with the trading standards and relevant conduct codes during the fiscal year 2021[90] Environmental, Social, and Governance (ESG) Initiatives - The company is committed to reducing negative environmental impacts and contributing to community welfare[166] - The ESG report covers major business segments including tumor immunotherapy and health management services in China[159] - The group consumed 374,815 kWh of electricity in 2021, a decrease of 57.3% from 874,427 kWh in 2020, resulting in a consumption density of 0.60 kWh per thousand HKD revenue[183] - Water consumption was 6,867 cubic meters in 2021, slightly down from 6,989 cubic meters in 2020, maintaining a consumption density of 0.01 cubic meters per thousand HKD revenue[183] - The group generated nitrogen oxides (NOx) emissions of 7.5 kg, sulfur oxides (SOx) emissions of 0.20 kg, and particulate matter (PM) emissions of 0.55 kg during the reporting period[184] Employee and Workforce Management - The group employed a total of 211 full-time employees as of December 31, 2021, compared to 129 in 2020[73] - Total employee costs for the year 2021 amounted to approximately HKD 99,354,000, an increase from HKD 67,551,000 in 2020[73] - Contributions to the mandatory provident fund plan for the year 2021 totaled approximately HKD 2,089,000, up from HKD 1,543,000 in 2020[74] Financial Position and Assets - As of December 31, 2021, the company's cash and bank balances were approximately HKD 150,554,000, a decrease of about HKD 233,985,000 from HKD 384,539,000 in 2020[56] - The total assets of the company as of December 31, 2021, were approximately HKD 706,782,000, while total liabilities were about HKD 240,887,000, resulting in a debt-to-asset ratio of approximately 34.08%[58] - The company holds an investment in Pillar Biosciences valued at HKD 67,940,000, representing 9.61% of total assets as of December 31, 2021[63] - The investment in Kintor Pharmaceutical is valued at HKD 54,081,000, accounting for 7.65% of total assets as of December 31, 2021[63] Shareholder and Financial Management - The company repurchased a total of 2,695,000 shares in 2021 at prices ranging from HKD 1.27 to HKD 1.78 per share, demonstrating a commitment to shareholder value[46] - The company has adopted a dividend policy to allow shareholders to share in profits while retaining liquidity for future growth opportunities[155] - The board will consider factors such as operational and financial performance, capital needs, and liquidity before declaring dividends[156]

Financial Performance - For the three months ended September 30, 2021, the revenue was HKD 131,242,000, a decrease of 74.6% compared to HKD 515,725,000 in the same period of 2020[7]. - The gross profit for the same period was HKD 77,051,000, down 70.7% from HKD 263,125,000 year-on-year[7]. - Operating profit for the three months was HKD 32,179,000, a decline of 85.5% compared to HKD 222,058,000 in the previous year[7]. - The net profit for the three months was HKD 22,901,000, a decrease of 87.3% from HKD 179,322,000 in the same quarter of 2020[7]. - The total comprehensive income for the three months was HKD 71,666,000, down 60.1% from HKD 179,444,000 year-on-year[14]. - For the nine months ended September 30, 2021, the revenue was HKD 505,401,000, a decrease of 7.6% compared to HKD 547,030,000 in the same period of 2020[7]. - The operating profit for the nine months was HKD 179,463,000, an increase of 0.8% from HKD 177,966,000 year-on-year[7]. - The net profit for the nine months was HKD 131,891,000, a decrease of 1.2% compared to HKD 133,543,000 in the previous year[7]. - The basic and diluted earnings per share for the three months was HKD 0.003, down from HKD 0.064 in the same period of 2020[14]. - The company's profit attributable to owners for the nine months ended September 30, 2021, was HKD 27,254,000, compared to HKD 21,532,000 for the same period last year, reflecting a 26.5% increase[42]. - Basic and diluted earnings per share for the nine months ended September 30, 2021, were HKD 0.028, up from HKD 0.022 in the same period last year, indicating a 27.3% increase[42]. Revenue Streams - For the nine months ended September 30, 2021, the revenue from medical laboratory testing services and health check services was HKD 491.61 million, compared to HKD 539.26 million for the same period in 2020, reflecting a decrease of approximately 8.8%[26]. - The revenue from insurance brokerage services for the nine months ended September 30, 2021, was HKD 6.42 million, an increase of approximately 6.2% from HKD 6.05 million in the same period of 2020[26]. - The revenue from logistics services for the nine months ended September 30, 2021, was HKD 6.32 million, with no revenue reported in the same period of 2020, indicating a new revenue stream[26]. - The total revenue for the nine months ended September 30, 2021, was HKD 547.03 million, compared to HKD 505.40 million for the same period in 2020, representing an increase of approximately 8.3%[26]. - The company reported a significant decrease in revenue from the manufacturing and sales of health-related and pharmaceutical products, with no revenue recorded for the three months ended September 30, 2021, compared to HKD 161,000 in the same period of 2020[26]. Operational Developments - The company continues to focus on expanding its services in tumor immunotherapy and health management services in China, which are key areas of growth[21]. - The company operates primarily in tumor immunotherapy, health management services, and medical laboratory testing in China and Hong Kong[49]. - The group has established a basic laboratory in Hong Kong to provide COVID-19 nucleic acid testing services, and a mobile laboratory at Hong Kong International Airport for rapid testing[50]. - Shanghai Longyao has initiated clinical research for a new CAR-T therapy, LY007, which received approval for clinical trials in January 2021[52]. - The company is exploring diversification in its testing business and plans to expedite the Phase I clinical trials for CAR-T products that have received clinical approval[72]. Shareholder Information - As of September 30, 2021, the total number of issued shares of the company was 963,231,150, with a par value of HKD 0.10 per share[79]. - Mr. Liu Xiaolin holds 529,500,546 shares, representing approximately 54.97% of the company's total shares[78]. - Genius Earn, a controlled corporation, also holds 529,500,546 shares, equivalent to 54.97%[83]. - Guoyuan Securities Investment (Hong Kong) Limited holds 22,428,571 shares, accounting for 2.33% of the total shares[83]. - Guoyuan International Holdings Limited has a controlled interest in 475,082,640 shares, representing 49.32%[83]. - The total number of options granted under the share option scheme is 13,760,000, which is approximately 1.44% of the total shares[81]. - The company has implemented a share option scheme to reward eligible participants for their contributions to the group's success[87]. - The company has a significant concentration of ownership, with major shareholders holding over 54% of the total shares[84]. Corporate Governance - The company maintained compliance with the GEM Listing Rules regarding corporate governance during Q3 2021[109]. - The audit committee, consisting of three independent non-executive directors, reviewed the financial reporting procedures and internal controls for Q3 2021[111]. - The company confirmed that all directors adhered to the trading standards and code of conduct during Q3 2021[107]. - The company expressed gratitude to stakeholders for their support in the Q3 2021 report[114]. Financial Costs and Income - Interest income for the three months ended September 30, 2021, was HKD 1,000, down from HKD 4,000 in the same period last year, representing a 75% decrease[29]. - Miscellaneous income increased significantly to HKD 171,000 for the three months ended September 30, 2021, compared to HKD 55,000 in the same period last year, marking a 210.9% increase[29]. - Total financing costs for the three months ended September 30, 2021, were HKD 1,210,000, a decrease of 47.5% from HKD 2,307,000 in the same period last year[30]. - Financing costs increased to approximately HKD 5,286,000 in Q3 2021, compared to HKD 4,180,000 in Q3 2020[63]. Market Outlook - The economic outlook for the coming year is expected to improve slightly despite ongoing geopolitical and macroeconomic challenges[70]. - The global CAR-T market is projected to grow at a compound annual growth rate of 59%, reaching USD 8.71606 billion by 2025[71].

中期報告 CHINA BIOTECH SERVICES HOLDINGS LIMITED 中國生物科技服務控股有限公司 CHINA BIOTECH SERVICES HOLDINGS LIMITED 中國生物科技服務控股有限公司 (Incorporated in the Cayman Islands and continued in Bermuda with limited liability) Stock Code: 8037 INTERIM REPORT 2021 Precision Diagnosis 精準檢測 Future Biotechnology Platform 未來生物科技平臺Precision Treatment 精準治療 CHINA BIOTECH SERVICES HOLDINGS LIMITED 中國生物科技服務控股有限公司 (於開曼群島註冊成立並在百慕達繼續營業之有限公司) 股份代號: 8037 2021 中身 Future Biotechnology Platform 未來生物科技平臺Precision Treatment 精準治療 Precision Diagnosis 精準檢測 ...

Financial Performance - The company reported a revenue of HKD 154,169,000 for the first quarter of 2021, a significant increase from HKD 12,704,000 in the same period of 2020, representing a growth of approximately 1,113%[9] - Gross profit for the first quarter of 2021 was HKD 75,220,000, compared to HKD 2,997,000 in the first quarter of 2020, indicating a substantial increase[9] - Operating profit for the first quarter of 2021 was HKD 38,865,000, a turnaround from an operating loss of HKD 24,570,000 in the same quarter of the previous year[9] - The company achieved a profit before tax of HKD 36,585,000, compared to a loss before tax of HKD 25,026,000 in the first quarter of 2020[9] - Net profit for the first quarter of 2021 was HKD 27,239,000, a significant improvement from a net loss of HKD 24,708,000 in the same period last year[9] - The total comprehensive income for the first quarter of 2021 was HKD 26,746,000, compared to a total comprehensive loss of HKD 24,980,000 in the first quarter of 2020[11] - Basic and diluted earnings per share for the first quarter of 2021 were HKD 0.002, recovering from a loss per share of HKD 0.023 in the same quarter of 2020[11] Revenue Segmentation - Revenue from medical laboratory testing and health check services was HKD 146,440 thousand, up from HKD 8,885 thousand year-over-year[25] - The insurance brokerage services segment recorded a revenue increase of 22.51%, rising from approximately HKD 3,084,000 in the first quarter of 2020 to approximately HKD 3,777,000 in the first quarter of 2021[44] - The manufacturing and sales of health-related and pharmaceutical products segment saw a decrease in revenue from approximately HKD 407,000 in the first quarter of 2020 to approximately HKD 107,000 in the first quarter of 2021, attributed to the challenging economic environment and COVID-19 outbreak[42] Expenses and Costs - Administrative expenses increased to HKD 33,419,000 from HKD 24,793,000 year-on-year, reflecting ongoing investments in operations[9] - Interest expenses for Q1 2021 amounted to approximately HKD 2,280,000, a significant increase from HKD 456,000 in Q1 2020, attributed to higher short-term borrowings[53] - Sales and distribution expenses were approximately HKD 3,138,000 in Q1 2021, up about HKD 221,000 or 7.58% from HKD 2,917,000 in Q1 2020, maintaining a stable level[49] Strategic Focus and Development - The company is focused on expanding its biotechnology services and enhancing its precision diagnosis and treatment capabilities in the market[8] - The company continues to focus on expanding its services in tumor immunotherapy and health management in China[19] - The company is actively involved in the research and development of healthcare-related products and services[19] - The company aims to enhance its market presence through strategic partnerships and potential acquisitions in the healthcare sector[19] - The company plans to diversify its testing business and expedite clinical trials for CAR-T products, aiming to establish itself as an advanced biomedical innovation platform[59] Shareholder Information - The company has not recommended any dividend distribution for the three months ended March 31, 2021, consistent with the previous year[30] - The weighted average number of ordinary shares used for calculating basic and diluted earnings per share was 966,052,000 for the three months ended March 31, 2021, compared to 969,806,000 for the same period in 2020[32] - Genius Earn holds a controlling interest in 529,500,546 shares, representing 54.85% of the total shares[81] - The company repurchased 485,000 shares at a price between HKD 1.27 and HKD 1.35 per share during Q1 2021[55] - The share repurchase price ranged from HKD 1.27 to HKD 1.35, with a total expenditure of HKD 1,147,850[97] Corporate Governance - The company has adopted a set of trading standards for directors in compliance with GEM listing rules[99] - The board is committed to maintaining high standards of corporate governance and compliance with legal and regulatory requirements[100] - The company has confirmed compliance with the GEM listing rules during the first quarter of 2021[101] - There were no conflicts of interest reported among directors or controlling shareholders during the first quarter of 2021[102] - The audit committee has been established to comply with GEM listing rules and consists of three independent non-executive directors[103]

Business Performance - The company recorded a revenue of approximately HKD 655,792,000 for the year ended December 31, 2020, a significant increase of about 10.07 times compared to HKD 59,214,000 for the year ended December 31, 2019[17]. - The revenue from the medical laboratory testing and health check services segment increased significantly from approximately HKD 53,551,000 in 2019 to approximately HKD 646,748,000 in 2020, representing a growth of 1,108%[22]. - The gross profit for 2020 was approximately HKD 339,082,000, up from approximately HKD 22,373,000 in 2019, an increase of approximately HKD 316,709,000[26]. - The gross profit margin improved to approximately 51.71% in 2020, up from approximately 37.78% in 2019, an increase of about 13.93 percentage points[26]. - The total revenue from the insurance brokerage services segment was approximately HKD 6,875,000 in 2020, compared to HKD 2,402,000 in 2019, marking a significant increase[23]. - The company recorded a net profit of approximately HKD 167,623,000 in 2020, reversing a net loss of approximately HKD 107,483,000 in 2019[32]. COVID-19 Response - The company completed over 1,700,000 COVID-19 tests, with a peak daily testing capacity of 230,000 samples[1]. - The establishment of the mobile laboratory at Hong Kong International Airport provided rapid RT-PCR testing services, reducing passenger wait times from 8-12 hours to 2-3 hours[1]. - The company established a laboratory and an additional temporary laboratory with 16 air membranes in Hong Kong to provide COVID-19 testing services[22]. - The company entered into a service agreement for COVID-19 testing services, with a transaction value of HKD 145,393,461.77[42]. Biotechnology Developments - Shanghai Longyao Biotechnology Co., a non-wholly owned subsidiary, achieved a milestone with its LY007 cell injection, becoming the first CAR-T product targeting CD20 to receive clinical application approval in China[8]. - The company aims to continue developing its biotechnology platform and provide high-quality immune cell therapy technologies[12]. - The company aims to diversify its testing business and expedite clinical trials for CAR-T products, with a focus on the Greater Bay Area healthcare market[45]. Financial Management - Administrative expenses rose to approximately HKD 132,489,000 in 2020, an increase of about 40.78% from approximately HKD 94,111,000 in 2019[30]. - Interest income from the lending business was approximately HKD 1,300,000 in 2020, down from HKD 1,688,000 in 2019[24]. - The financing costs increased to approximately HKD 6,498,000 in 2020, compared to HKD 1,692,000 in 2019, primarily due to the issuance of convertible bonds[31]. - The company strengthened its capital base through the issuance of convertible bonds, which will not immediately dilute existing shareholders' equity[36]. Corporate Governance - The company adhered to the GEM Listing Rules Appendix 15 Corporate Governance Code during the fiscal year ending December 31, 2020[87]. - The board consists of six executive directors and three independent non-executive directors, reflecting a mix of skills and experience[89]. - The company has implemented corporate governance measures focusing on integrity, quality of information disclosure, transparency, and accountability[86]. - The company has established an audit committee, nomination committee, and remuneration committee as part of its corporate governance practices[104]. - The audit committee consists of three independent non-executive directors and has reviewed the financial performance for the year 2020[104]. Environmental Responsibility - The group is committed to protecting the environment and fulfilling social responsibilities while adhering to strict corporate governance standards[149]. - The environmental policy includes monitoring compliance with applicable environmental laws and promoting an eco-friendly culture among employees[164]. - The company has not recorded any violations of environmental laws during the reporting period[175]. - The company aims to maintain a zero-violation record in hazardous waste management, reflecting its commitment to environmental responsibility[182]. Employee Management - The total employee cost for the year was approximately HKD 67,551,000, an increase from HKD 48,739,000 in the previous year[67]. - The company employed a total of 129 full-time employees as of December 31, 2020, down from 143 in 2019[67].

Financial Performance - Total revenue for the three months ended September 30, 2020, was HKD 515,725,000, a significant increase from HKD 14,151,000 in the same period of 2019[5] - Gross profit for the three months ended September 30, 2020, was HKD 263,125,000, compared to HKD 5,307,000 in the prior year, reflecting a substantial growth[5] - Operating profit for the three months ended September 30, 2020, was HKD 222,058,000, a turnaround from an operating loss of HKD 23,335,000 in the same quarter of 2019[5] - Profit before tax for the three months ended September 30, 2020, was HKD 218,812,000, compared to a loss of HKD 24,297,000 in the previous year[5] - Net profit for the three months ended September 30, 2020, was HKD 179,322,000, compared to a loss of HKD 23,976,000 in the same period of 2019[5] - Total revenue for the nine months ended September 30, 2020, was HKD 547,030,000, up from HKD 42,721,000 in the same period of 2019[5] - Basic and diluted earnings per share for the three months ended September 30, 2020, was HKD 0.064, compared to a loss of HKD 0.023 in the prior year[10] - The company reported a total comprehensive income of HKD 179,444,000 for the three months ended September 30, 2020, compared to a loss of HKD 24,485,000 in the same period of 2019[10] - The company has shown a strong recovery in financial performance, indicating potential for future growth and market expansion[5] - The increase in revenue and profit margins suggests successful implementation of new strategies and operational efficiencies[5] Equity and Assets - As of September 30, 2020, the total equity attributable to the owners of the company was HKD 96,685 million, a decrease from HKD 96,981 million as of January 1, 2020[12] - The company reported a net loss of HKD 56,148 million for the period, compared to a loss of HKD 60,294 million in the previous period[15] - The total comprehensive loss for the period amounted to HKD 57,252 million, which includes other comprehensive losses of HKD 1,104 million[15] - The company’s total assets as of September 30, 2020, were HKD 457,018 million, reflecting a decrease from HKD 493,363 million as of January 1, 2020[12] - The company reported a cumulative loss of HKD 509,528 million as of September 30, 2020[12] - The company’s revenue for the nine months ended September 30, 2020, was HKD 289,192 million, compared to HKD 313,363 million for the same period in the previous year[12] - The company’s cash and cash equivalents as of September 30, 2020, were HKD 24,171 million[12] Market Strategy and Expansion - The company plans to expand its market presence in China and Hong Kong through new healthcare services and product offerings[18] - The company is focusing on research and development of immunotherapy and health management services in China[18] - The company established a laboratory and an additional temporary laboratory with 16 air membranes in Hong Kong to provide COVID-19 testing services, responding to the increased demand due to the pandemic[52] - The company has initiated clinical research for a new generation CD20-targeted CAR-T therapy, with the product LY007 cell injection undergoing clinical trial registration[53] - The group aims to maintain its market share in medical testing and healthcare in Hong Kong while focusing on the development and registration of immune cell products[71] - The management is confident in the biotechnology industry's prospects and is committed to obtaining clinical approval for cell therapy products as soon as possible[71] Revenue Sources - Revenue from medical laboratory testing and health check services was HKD 513,688,000 for the three months ended September 30, 2020, compared to HKD 13,162,000 in 2019, indicating a substantial growth[24] - Revenue from the sale of healthcare-related and pharmaceutical products was HKD 161,000 for the three months ended September 30, 2020, down from HKD 398,000 in 2019[24] - The company did not recognize any revenue from tumor immunotherapy services for the three months ended September 30, 2020, compared to HKD 77,000 in 2019[24] - The revenue from the medical laboratory testing and health check services segment increased significantly from approximately HKD 40,059,000 in Q3 2019 to approximately HKD 539,259,000 in Q3 2020, representing a growth of 1,246.16%[56] - The total revenue from the insurance brokerage services segment was approximately HKD 6,046,000 in Q3 2020, compared to zero in Q3 2019[57] Expenses and Costs - Interest expenses for the three months ended September 30, 2020, amounted to HKD 2,307,000, compared to HKD 488,000 in 2019, showing a significant increase in financing costs[27] - Administrative expenses increased by approximately HKD 26,728,000 or 41.47%, totaling about HKD 91,184,000 in Q3 2020 compared to approximately HKD 64,456,000 in Q3 2019[62] - The total employee cost for the third quarter of 2020 was approximately HKD 50,529,000, compared to HKD 34,895,000 in the same period of 2019, reflecting an increase of about 45.0%[75] - The company borrowed additional short-term loans, leading to an increase in interest expenses to approximately HKD 4,180,000 in Q3 2020 from HKD 772,000 in Q3 2019[63] Shareholder Information - As of September 30, 2020, the total number of shares issued by the company was 966,851,150, with a par value of HKD 0.10 per share[88] - Genius Earn holds 529,500,546 shares, representing approximately 54.77% of the total shares[94] - Yao Xin Venture Limited holds 128,300,000 shares, representing approximately 13.27% of the total shares[94] - The total number of shares held by major shareholders amounts to 29,680,000, which is approximately 3.06%[91] - The company has a stock option plan established to reward eligible participants for their contributions to the group's success[99] - The total stock options granted during Q3 2020 amounted to 20,020,000 shares, with a total value of HKD 29,680,000[100] - The total number of stock options exercised during the quarter was 2,955,000 shares[112] - The company repurchased a total of 2,955,000 shares of its ordinary stock during the third quarter of 2020, reflecting confidence in its long-term business prospects[113] Governance and Compliance - The board confirmed that all directors complied with the trading standards and the code of conduct during the third quarter of 2020[115] - The company maintained compliance with the corporate governance code as per GEM listing rules during the third quarter[116] - There were no conflicts of interest reported among directors or controlling shareholders during the third quarter[117] - The audit committee, consisting of three independent non-executive directors, reviewed the financial reporting procedures and internal controls during the third quarter[118] - The company ensured sufficient public float as required by GEM listing rules as of the report date[120] - The board expressed gratitude to all shareholders for their support during the third quarter[121]

Financial Performance - Total revenue for the six months ended June 30, 2020, was HKD 31,305,000, an increase of 9.1% compared to HKD 28,570,000 for the same period in 2019[8]. - Gross profit for the six months ended June 30, 2020, was HKD 9,438,000, a decrease of 9.1% from HKD 10,382,000 in the same period of 2019[8]. - Operating loss for the six months ended June 30, 2020, was HKD 44,092,000, compared to a loss of HKD 35,800,000 for the same period in 2019, representing a 23.5% increase in losses[8]. - The company reported a net loss of HKD 45,779,000 for the six months ended June 30, 2020, compared to a loss of HKD 36,318,000 in the same period of 2019, indicating a 26.5% increase in net losses[10]. - Basic and diluted loss per share for the six months ended June 30, 2020, was HKD 0.042, compared to HKD 0.036 for the same period in 2019, indicating a worsening loss per share[10]. - The group reported a total loss of HKD 45,779,000 for the period, compared to a loss of HKD 36,318,000 in the same period of the previous year[42]. - The gross profit for the six months ended June 30, 2020, was approximately HKD 9,438,000, a decrease of about HKD 944,000 from HKD 10,382,000 in the same period of 2019, with a gross margin of approximately 30.15%, down 6.19 percentage points from 36.34%[105]. Revenue Breakdown - Revenue from medical laboratory testing and health check services was HKD 25,571,000 for the six months ended June 30, 2020, compared to HKD 26,897,000 in 2019, a decrease of 4.9%[36]. - Revenue from the sale of healthcare-related and pharmaceutical products decreased to HKD 585,000 in the first half of 2020 from HKD 794,000 in 2019, a decline of 26.3%[36]. - The insurance brokerage service generated revenue of HKD 4,492,000 for the six months ended June 30, 2020, while there was no revenue reported in the same period of 2019[36]. - The revenue from the medical laboratory testing and health check services segment decreased by approximately 4.93% to HKD 25,571,000 in the 2020 interim period from HKD 26,897,000 in 2019[102]. - The manufacturing and sales of health-related and pharmaceutical products segment saw a slight decrease in revenue from approximately HKD 794,000 in 2019 to about HKD 585,000 in 2020[100]. Assets and Liabilities - Cash and cash equivalents increased to HKD 59,549,000 as of June 30, 2020, up from HKD 45,518,000 as of December 31, 2019, reflecting a 30.8% increase[13]. - The company's total assets as of June 30, 2020, were HKD 435,989,000, compared to HKD 416,584,000 as of December 31, 2019, showing a growth of 4.6%[13]. - The total liabilities as of December 31, 2019, were HKD 103,221,000, with the highest liabilities in the pharmaceutical products segment at HKD 819,000[47]. - The total liabilities decreased to HKD 126,433,000 from HKD 49,462,000, showing a significant reduction of approximately 61.1%[19]. - The group’s total liabilities increased to approximately HKD 161,803,000 as of June 30, 2020, from HKD 103,221,000 on December 31, 2019[126]. - The group’s debt-to-asset ratio was approximately 37.11% as of June 30, 2020, compared to 24.78% on December 31, 2019, indicating increased leverage[126]. Cash Flow - Net cash used in operating activities was HKD (37,129,000), worsening from HKD (17,078,000) year-over-year[27]. - Net cash used in investing activities was HKD (908,000), significantly improved from HKD (72,258,000) in the previous year[27]. - Net cash generated from financing activities was HKD 52,216,000, a substantial increase from HKD 8,744,000 in the prior period[27]. - Cash and cash equivalents at the end of the period totaled HKD 59,549,000, down from HKD 72,940,000 year-over-year[27]. Employee Costs - The company experienced a significant increase in employee costs, totaling HKD 24,792,000 for the six months ended June 30, 2020, compared to HKD 22,549,000 in 2019[53]. - Total employee costs for the mid-year period were approximately HKD 25,561,000, an increase from HKD 23,579,000 in the same period of 2019[144]. - The group employed a total of 142 full-time employees as of June 30, 2020, compared to 134 employees as of June 30, 2019[144]. Shareholder Information - The company did not recommend any dividend for the six months ended June 30, 2020, remaining unchanged from the same period in 2019[58]. - The company has not declared any dividends, maintaining a dividend yield of 0%[88]. - Genius Earn holds a controlling interest with 529,500,546 shares, representing 54.60% of the total issued shares as of June 30, 2020[155]. - The total number of issued shares of the company is 969,806,150, with a par value of HKD 0.10 per share[157]. Corporate Governance - The company has established an audit committee to oversee financial reporting and internal controls[180]. - The company has maintained compliance with GEM listing rules regarding public float requirements[181]. - The company has adhered to corporate governance measures to ensure transparency and accountability[176]. - The board consists of six executive directors and three independent non-executive directors[182]. Strategic Initiatives - The company aims to achieve clinical approval for its cell therapy products and expedite the market launch of CAR-T products, which are expected to create significant value[119]. - The CAR-T technology market is projected to grow at a compound annual growth rate (CAGR) of 46.1% from 2019 to 2028, benefiting companies in the sector[116]. - The group has established distribution agreements for COVID-19 testing kits to mitigate the impact of the pandemic on its performance[102]. - The group plans to explore collaboration opportunities with Broncus to strategically position itself in the precision diagnosis and treatment industry[136].