Financial Performance - The company reported a gross profit of approximately HKD 34,324,000 for the fiscal year 2023, a decrease of about HKD 1,066,633,000 compared to HKD 1,100,957,000 in fiscal year 2022, resulting in a gross margin of 16.19%, down 43.27 percentage points from 59.46% in the previous year[28]. - The net loss attributable to the company's owners for fiscal year 2023 was approximately HKD 95,447,000, compared to a net profit of HKD 258,087,000 in fiscal year 2022, primarily due to a decline in demand for COVID-19 testing services and rapid antigen test kits following the easing of quarantine regulations[32]. - The company reported total revenue for the year ended December 31, 2023, was HKD 211,985,000, a decrease of 88.6% from HKD 1,851,601,000 in 2022[115]. - The net loss for the year was HKD 140,706,000, compared to a profit of HKD 705,568,000 in 2022, indicating a substantial downturn in financial performance[115]. - The total comprehensive loss for the year was HKD 174,253,000, compared to a comprehensive income of HKD 654,250,000 in 2022[117]. - The company reported a basic and diluted loss per share of HKD 9.9 for the year, down from earnings of HKD 26.8 per share in the previous year[117]. - The company reported external customer revenue of HKD 211,985,000 for the year ending December 31, 2023, with contributions from various segments including medical and healthcare services (HKD 192,910,000) and pharmaceutical products (HKD 881,000)[138]. - The total loss before tax for the year was HKD 142,025,000, with a net loss of HKD 140,706,000 after tax[138]. - The group reported a loss of HKD 95,447,000 for the year 2023, compared to a profit of HKD 258,087,000 in 2022[197]. Revenue and Demand Trends - The company experienced a significant decrease in revenue from medical laboratory testing and health check services, which contributed to the overall lower demand in fiscal year 2023[22]. - The demand for COVID-19 related laboratory testing services significantly decreased due to the relaxation and subsequent cancellation of quarantine regulations[186]. - The revenue of the division decreased from approximately HKD 1,619,568,000 in 2022 to approximately HKD 192,910,000 in 2023, representing a decline of 88.09%[186]. - The total revenue for Hong Kong in 2023 was HKD 211,972,000, down from HKD 1,851,331,000 in 2022, indicating a significant decrease[191]. Assets and Liabilities - The company reported total assets of HKD 662,362,000 for the year ended December 31, 2023, down from HKD 1,470,491,000 in 2022[104]. - The total liabilities decreased from HKD 643,971,000 in 2022 to HKD 171,636,000 in 2023, a reduction of approximately 73%[105]. - The company’s total current assets decreased to HKD 261,166,000 in 2023 from HKD 884,757,000 in 2022[104]. - The company’s non-current assets included property, plant, and equipment valued at HKD 100,535,000, an increase from HKD 96,073,000 in 2022[104]. - The company’s goodwill decreased to HKD 107,181,000 in 2023 from HKD 110,083,000 in 2022[104]. - The company’s trade receivables and other receivables decreased significantly to HKD 39,636,000 in 2023 from HKD 765,547,000 in 2022[104]. Operational Changes and Strategies - The company plans to expand its routine medical laboratory testing and health check services to provide high-throughput public health screening services in Hong Kong, responding to the reduced demand for COVID-19 testing[39]. - The company has established a high-standard molecular biology laboratory in Hong Kong, providing next-generation sequencing (NGS) cancer companion diagnostic tests since July 2022, and is seeking collaborations with local hospitals and clinical laboratories[40]. - The company aims to become the first service provider in Greater China to offer boron neutron capture therapy for difficult-to-treat head and neck cancer patients, with plans to enhance advanced tumor radiation therapy services in mainland China, Hong Kong, and Macau[41]. - The company continues to evaluate its strategic options for future growth and market expansion[145]. Investments and Commitments - The company has committed to building and operating a cancer treatment center using a boron neutron capture therapy system in Hainan, with the system being supplied by Sumitomo Heavy Industries, Ltd.[53]. - The company injected a total of RMB 48,000,000 into Shanghai Longyao Biotechnology Co., Ltd. as part of its investment strategy[49]. - The company has authorized but not contracted capital commitments totaling HKD 208,295,000 for the fiscal year 2023, compared to HKD 237,541,000 in 2022[75]. - The company has made an initial payment of approximately HKD 51,765,000 for the purchase of boron neutron capture therapy equipment, with a total contract price of approximately HKD 176,820,000[77]. Employee and Operational Costs - The total employee cost for the fiscal year 2023 was approximately HK$92,607,000, a decrease from HK$166,735,000 in the previous year, with a total of 162 full-time employees as of December 31, 2023[60]. - The company’s operating expenses and financing costs were impacted by the overall decline in business activity due to the pandemic[30]. - The total contributions made by the company to the retirement plans for the fiscal year 2023 amounted to approximately HKD 2,996,000, a decrease from HKD 3,271,000 in the fiscal year 2022[61]. Governance and Compliance - The company has complied with the corporate governance code as per GEM listing rules, ensuring high standards of corporate governance and transparency[64]. - The company has maintained the public float as required by GEM listing rules[73]. - The company has conducted five audit committee meetings during the fiscal year 2023 to review financial performance and compliance procedures[71]. Future Outlook - Future outlook remains uncertain due to the substantial decrease in both total equity and non-controlling interests, which may impact investor confidence[106]. - The company is exploring market expansion opportunities, although specific strategies were not disclosed in the financial report[108].

智通财经APP讯，中国生物科技服务(08037)发布公告，海南省药品监督管理局已经于2024年1月28日批准进口(i)硼中子俘获治疗中子照射系统(型号： BNCTS-2-3);及(ii)硼中子俘获治疗之治疗规划程序(型号：BNCTDE-1)，作为在中华人民共和国海南自由贸易港博鰲乐城国际医疗旅游先行区硼中子俘获治疗癌症治疗中心使用之急需医疗装置。 该等医疗装置乃由Sumitomo Heavy Industries, Ltd.生产及供应，其将会在硼中子俘获治疗中心用作治疗不可切除的局部晚期或局部复发性头颈癌。 硼中子俘获治疗中子照射系统为一种紧凑型硼中子俘获治疗系统，可安装于医院内。其由质子加速器、质子束传输系统、中子照射装置及其他相关装置组成。传输系统会将来自加速器的质子束辐合或偏转以撞击放置于中子照射装置上的靶点。靶点由铍制成，而质子与铍原子核之间的碰撞会引发核反应，产生具有非常高能量的中子。硼中子俘获治疗中子照射系统中的相关装置会缓和并降低中子能量，安全地产生适合患者进行硼中子俘获治疗的稳定中子束。 硼中子俘获治疗之治疗规划程序根据轮廓资料(身体轮廓、器官形状、骨骼区域、治疗区域的形状╱组成部分及生物参数 ...

Financial Performance - For the three months ended September 30, 2023, the total revenue was HKD 18,355,000, a decrease of 96.9% compared to HKD 588,842,000 for the same period in 2022[12] - For the nine months ended September 30, 2023, the total revenue was HKD 200,712,000, down 84.3% from HKD 1,275,751,000 in the same period of 2022[12] - The company reported a net loss of HKD 54,976,000 for the three months ended September 30, 2023, compared to a profit of HKD 257,246,000 in the same period of 2022[24] - The division's revenue decreased from approximately HKD 1,044,983,000 in Q3 2022 to about HKD 185,559,000 in Q3 2023, representing a decline of 82.24%[43] - The group recorded a revenue of approximately HKD 200,712,000 in Q3 2023, a significant decrease of about 84.27% compared to HKD 1,275,751,000 in the same period of 2022[60] - The company reported a loss attributable to owners of the company of HKD 35,492,000 for the three months ended September 30, 2023, compared to a profit of HKD 91,296,000 in the same period of 2022[46] - The basic and diluted loss per share for the nine months ended September 30, 2023, was HKD (0.068), compared to a profit of HKD 0.166 for the same period in 2022[46] - The total comprehensive loss for the three months ended September 30, 2023, was HKD 57,374,000, compared to a total comprehensive income of HKD 239,090,000 in Q3 2022[70] Revenue Sources and Trends - The demand for COVID-19 related laboratory testing services significantly decreased due to the relaxation of quarantine regulations by the government, impacting revenue negatively[43] - The core business revenue from nucleic acid testing services and rapid antigen test kits has significantly decreased due to the easing threat of the COVID-19 pandemic[129] - The company continues to provide a variety of medical laboratory testing services and quality health check diagnostic services through three medical laboratories and three health check centers in Hong Kong[56] - The sales and distribution of healthcare-related and pharmaceutical products saw a significant decline, with revenue dropping from approximately HKD 216,557,000 in Q3 2022 to about HKD 473,000 in Q3 2023, a decrease of approximately 99.78%[63] - The revenue from logistics services decreased from approximately HKD 7,816,000 in Q3 2022 to about HKD 19,000 in Q3 2023, a decline of 99.76% due to intense market competition and reduced demand for testing supplies and sample logistics services[109] Expenses and Losses - The gross loss for the three months ended September 30, 2023, was HKD 11,403,000, compared to a gross profit of HKD 385,091,000 in Q3 2022[74] - The operating loss for the three months ended September 30, 2023, was HKD 49,241,000, compared to an operating profit of HKD 314,260,000 in the same period of 2022[74] - Administrative expenses for Q3 2023 were approximately HKD 108,728,000, a decrease of about HKD 48,827,000 or 30.99% compared to HKD 157,555,000 in Q3 2022, mainly due to reduced employee costs[103] - The company’s financing costs increased to approximately HKD 3,936,000 in Q3 2023, up from HKD 3,259,000 in Q3 2022, due to costs associated with convertible bonds issued[103] Government Support and Taxation - The company recognized government subsidies related to COVID-19 amounting to approximately HKD 1,661,000 during the nine months ended September 30, 2022[13] - The effective corporate income tax rate for the nine months ended September 30, 2023, was 25%, consistent with the same period in 2022[16] - The tax expense for the three months ending September 30, 2023, included a current tax expense of HKD (133,000) for Hong Kong profits tax[32] - The deferred tax for the period was recorded as HKD (302,000) for the three months ending September 30, 2023[32] - The group recognized government subsidies of approximately HKD 48,000 during the nine months ended September 30, 2023, related to employment support provided by the Chinese government[81] Corporate Governance and Shareholder Information - The company has not adopted new Hong Kong Financial Reporting Standards that have been issued but are not yet effective[11] - The company has issued shares listed on the GEM since June 17, 2004[9] - The company’s issued share capital as of September 30, 2023, was 963,231,150 shares with a par value of HKD 0.10 per share[142] - The company has a stock incentive plan that limits the total number of shares granted to no more than 10% of the total issued shares as of August 18, 2021[166] - The maximum rights for each participant in the stock incentive plan cannot exceed 1% of the total issued shares as of August 18, 2021[167] - The company confirmed that all directors complied with the prescribed trading standards and the code of conduct for securities trading during the third quarter of 2023[192] - The company has maintained the public float as specified under the GEM listing rules as of the report date[197] - The company has implemented corporate governance measures emphasizing integrity towards shareholders and the quality of information disclosure[193] Future Plans and Developments - The company aims to expand its market presence through exclusive distribution agreements for NMN products in Hong Kong and Macau[63] - The group plans to introduce new tests, including HPV DNA tests and colorectal cancer DNA tests, and seeks collaboration with the Hong Kong government and medical experts to enter the early screening market for colorectal cancer[116] - The company aims to become the first provider of boron neutron capture therapy for cancer treatment in the Greater China region, targeting advanced radiation therapy for late-stage cancer patients[117] - The company is progressing with the construction of a boron neutron capture therapy center in Boao, aiming for completion by the end of 2024 or early 2025[136] - The company has established partnerships with several domestic hospitals for cancer treatment services, including the upcoming Hainan boron neutron capture therapy center[136] Shareholder and Stock Options - The total number of stock options granted to directors and executives amounts to 8,220,000 shares, with a total exercise value of HKD 8,220,000[154] - The stock options granted to Ms. Xu Haiyin on January 6, 2023, total 5,000,000 shares, with an exercise price of HKD 1.45 per share[164] - During the third quarter of 2023, the company purchased a total of 5,295,000 shares at an approximate total cost of HKD 4,185,000[185] - A total of 582,000 incentive shares were granted to selected participants under the share incentive plan during the third quarter of 2023[185] - The number of incentive shares that can still be granted under the share incentive plan is 95,741,115, which represents 9.94% of the total issued shares of the company[186] - The share incentive plan has a validity period of 10 years from the date of adoption, expiring on August 17, 2031[200]

[Company Information and Announcements](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E4%B8%8E%E5%85%AC%E5%91%8A%E5%A3%B0%E6%98%8E) This section covers company announcements, GEM listing characteristics, director responsibilities, and unaudited third-quarter results [GEM Listing Characteristics and Risk Disclosure](index=1&type=section&id=GEM%E4%B8%8A%E5%B8%82%E7%89%B9%E7%82%B9%E4%B8%8E%E9%A3%8E%E9%99%A9%E6%8F%90%E7%A4%BA) This announcement advises investors that GEM-listed companies are typically small to medium-sized, facing higher market volatility and no guarantee of high liquidity - GEM-listed company securities trading may be subject to **significant market volatility risks**, and a highly liquid market is **not guaranteed**[36](index=36&type=chunk)[42](index=42&type=chunk)[55](index=55&type=chunk) [Directors' Responsibility Statement](index=1&type=section&id=%E8%91%A3%E4%BA%8B%E8%B4%A3%E4%BB%BB%E5%A3%B0%E6%98%8E) The company's directors collectively and individually assume full responsibility for the accuracy, completeness, and non-misleading nature of this announcement's information - Directors confirm the information in this announcement is accurate, complete, and not misleading, assuming full responsibility[43](index=43&type=chunk) [Unaudited Third Quarterly Results Announcement](index=2&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E7%AC%AC%E4%B8%89%E5%AD%A3%E5%BA%A6%E4%B8%9A%E7%BB%A9%E5%85%AC%E5%91%8A) The Board presents the unaudited condensed consolidated third quarterly results for the three and nine months ended September 30, 2023, with comparative figures for 2022 - The Board presents the unaudited condensed consolidated third quarterly results for the three and nine months ended September 30, 2023[44](index=44&type=chunk)[56](index=56&type=chunk) [Financial Statements](index=2&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's unaudited condensed consolidated financial statements, including the statement of profit or loss and other comprehensive income, and statement of changes in equity [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the nine months ended September 30, 2023, the company transitioned from profit to loss, primarily due to a significant revenue decline and increased comprehensive loss Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data (Nine Months Ended September 30) | Indicator | 2023 (HK$ thousand) | 2022 (HK$ thousand) | | :--- | :--- | :--- | | (Loss)/Profit for the period | (82,697) | 463,606 | | Total comprehensive (loss)/income for the period | (102,357) | 402,352 | | Revenue | 200,712 | 1,275,751 | | Gross profit | 49,923 | 736,313 | | Operating (loss)/profit | (83,308) | 571,206 | | (Loss)/Earnings Per Share (HK$) | (0.068) | 0.166 | - Loss for the period attributable to owners of the company turned from a profit of HK$159,516 thousand in the prior year to a loss of **HK$65,976 thousand** in 2023[40](index=40&type=chunk)[107](index=107&type=chunk) [Unaudited Condensed Consolidated Statement of Changes in Equity](index=4&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) For the nine months ended September 30, 2023, total equity decreased from HK$826,520 thousand at the beginning of the year to HK$562,266 thousand, influenced by period loss, share award scheme purchases, and dividend payments Condensed Consolidated Statement of Changes in Equity Key Data (Nine Months Ended September 30) | Indicator | September 30, 2023 (HK$ thousand) | January 1, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Total equity | 562,266 | 826,520 | | Loss for the period | (82,697) | - | | Shares purchased under share award scheme | (4,185) | - | | Dividends paid | (9,632) | - | - During the third quarter of 2023, the company paid a final dividend of approximately **HK$9,632 thousand**[29](index=29&type=chunk)[47](index=47&type=chunk) [Notes to the Financial Statements](index=6&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) This section provides detailed notes on the company's general information, accounting policies, revenue breakdown, other income, finance costs, and tax expenses [General Information](index=6&type=section&id=%E4%B8%80%E8%88%AC%E8%B5%84%E6%96%99) The company, incorporated in the Cayman Islands and re-domiciled in Bermuda, primarily engages in investment holding and provides medical laboratory testing, oncology immunotherapy, health product sales, and insurance brokerage services through its subsidiaries - The company has been listed on GEM since **June 17, 2004**, with Genius Lead Limited and Genius Earn Limited as its direct and ultimate holding companies, respectively[68](index=68&type=chunk)[69](index=69&type=chunk) - The company's principal activities include medical laboratory and health check services in Hong Kong, oncology immunotherapy and health management in China, sales of healthcare and pharmaceutical products in Hong Kong and China, and insurance brokerage services[96](index=96&type=chunk) [Basis of Preparation and Principal Accounting Policies](index=6&type=section&id=%E7%BC%96%E5%88%B6%E5%9F%BA%E6%BA%96%E5%8F%8A%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The quarterly results are prepared under the historical cost convention and Hong Kong Financial Reporting Standards, with newly adopted standards having no significant impact on financial position - The quarterly results are prepared under the historical cost convention and Hong Kong Financial Reporting Standards, with newly adopted standards having **no significant impact** on financial position[70](index=70&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) [Revenue](index=7&type=section&id=%E8%90%A5%E4%B8%9A%E9%A2%9D) For the nine months ended September 30, 2023, total revenue significantly decreased to HK$200,712 thousand, mainly due to reduced demand for COVID-19 nucleic acid testing services Revenue by Service Category (Nine Months Ended September 30) | Service Category | 2023 (HK$ thousand) | 2022 (HK$ thousand) | | :--- | :--- | :--- | | Medical laboratory testing and health check services | 185,559 | 1,044,983 | | Sale of healthcare and pharmaceutical products | 473 | 216,557 | | Insurance brokerage services | 14,661 | 6,360 | | Logistics services | 19 | 7,816 | | Money lending business | – | 35 | | **Total Revenue** | **200,712** | **1,275,751** | - Total revenue decreased significantly by **84.27%** year-on-year, primarily due to a decline in demand for COVID-19 nucleic acid testing services[147](index=147&type=chunk) [Other Income and Gains/(Losses)](index=8&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%E2%95%95%EF%BC%88%E4%B8%8B%E8%B7%8C%EF%BC%89) For the nine months ended September 30, 2023, net other income and gains resulted in a loss of HK$13,892 thousand, a substantial increase from the HK$924 thousand loss in the prior year, primarily due to exchange losses Other Income and Gains/(Losses) Key Data (Nine Months Ended September 30) | Indicator | 2023 (HK$ thousand) | 2022 (HK$ thousand) | | :--- | :--- | :--- | | Interest income | 2,344 | 23 | | Dividend income | 23 | – | | Miscellaneous income | 510 | 710 | | Government grants | 48 | 1,661 | | Gain/(loss) on disposal of property, plant and equipment | 322 | 1,103 | | Loss on write-off of property, plant and equipment | (1,530) | (4) | | Exchange losses, net | (15,609) | (4,417) | | **Total** | **(13,892)** | **(924)** | - During the third quarter of 2023, the company recognized approximately **HK$48 thousand** in employment support subsidies from the Chinese government[74](index=74&type=chunk) [Finance Costs](index=8&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) For the nine months ended September 30, 2023, finance costs increased to HK$3,936 thousand, mainly due to higher interest expenses from convertible bonds Finance Costs Key Data (Nine Months Ended September 30) | Indicator | 2023 (HK$ thousand) | 2022 (HK$ thousand) | | :--- | :--- | :--- | | Interest expense on other borrowings | – | 530 | | Effective interest expense on convertible bonds | 3,297 | 2,260 | | Interest expense on lease liabilities | 639 | 469 | | **Total** | **3,936** | **3,259** | [Income Tax (Credit)/Expense](index=9&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%EF%BC%88%E6%8A%B5%E5%85%8D%EF%BC%89%E2%95%95%E9%96%8B%E6%94%AF) For the nine months ended September 30, 2023, income tax expense was HK$2,609 thousand, comprising Hong Kong profits tax and deferred tax, with high-tech enterprises enjoying a preferential tax rate of 15% Income Tax (Credit)/Expense Key Data (Nine Months Ended September 30) | Indicator | 2023 (HK$ thousand) | 2022 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong profits tax | 3,544 | 107,700 | | Deferred tax | (935) | (996) | | **Total** | **2,609** | **106,704** | - Under the two-tiered profits tax regime in Hong Kong, the first **HK$2,000,000** of assessable profits is taxed at **8.25%**, with the remainder taxed at **16.5%**[77](index=77&type=chunk) - The corporate income tax rate in China is **25%**, with high-tech enterprises enjoying a preferential tax rate of **15%**[78](index=78&type=chunk)[104](index=104&type=chunk) [Dividends](index=9&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend any dividend for the nine months ended September 30, 2023, but a final dividend for the previous financial year was paid during the period - The Board does not recommend any dividend for the nine months ended September 30, 2023[79](index=79&type=chunk) - During the nine months ended September 30, 2023, a final dividend of **HK$0.01 per share**, totaling approximately **HK$9,632 thousand**, for the previous financial year was paid[29](index=29&type=chunk) [(Loss)/Earnings Per Share](index=10&type=section&id=%E6%AF%8F%E8%82%A1%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89%E2%95%95%E7%9B%88%E5%88%A9) For the nine months ended September 30, 2023, basic and diluted loss per share was HK$0.068, compared to earnings per share of HK$0.166 in the prior year, reflecting the company's shift from profit to loss (Loss)/Earnings Per Share Key Data (Nine Months Ended September 30) | Indicator | 2023 (HK$) | 2022 (HK$) | | :--- | :--- | :--- | | Basic and diluted (loss)/earnings per share | (0.068) | 0.166 | - Unexercised share options and convertible bonds were not assumed to be exercised in calculating diluted (loss)/earnings per share due to their anti-dilutive effect[81](index=81&type=chunk)[139](index=139&type=chunk) [Disposal of Subsidiaries](index=11&type=section&id=%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8) In 2022, the company disposed of Pearl Group and Chaocheng Group for cash consideration, recognizing corresponding gains [Disposal of Pearl Group](index=11&type=section&id=%E5%87%BA%E5%94%AE%E6%98%8E%E7%8F%A0%E9%9B%86%E5%9C%98) On April 4, 2022, the company disposed of its entire equity interest in Pearl Group for a cash consideration of HK$6,400 thousand, generating net cash inflow of HK$5,363 thousand - The company disposed of its entire equity interest in Pearl Group for a cash consideration of **HK$6,400 thousand** on April 4, 2022[30](index=30&type=chunk)[85](index=85&type=chunk)[141](index=141&type=chunk) Disposal of Pearl Group Gain and Cash Inflow | Indicator | Amount (HK$ thousand) | | :--- | :--- | | Consideration | 6,400 | | Less: Net assets disposed of | (5,810) | | **Gain** | **590** | | Consideration received in cash | 6,400 | | Less: Cash and cash equivalents disposed of | (1,037) | | **Net cash inflow from disposal** | **5,363** | [Disposal of Chaocheng Group](index=12&type=section&id=%E5%87%BA%E5%94%AE%E6%9C%9D%E6%AD%A3%E9%9B%86%E5%9C%98) On May 31, 2022, the company disposed of its entire equity interest in Chaocheng Group for a cash consideration of HK$50 thousand, generating net cash inflow of HK$11 thousand - The company disposed of its entire equity interest in Chaocheng Group for a cash consideration of **HK$50 thousand** on May 31, 2022[112](index=112&type=chunk)[113](index=113&type=chunk) Disposal of Chaocheng Group Gain and Cash Inflow | Indicator | Amount (HK$ thousand) | | :--- | :--- | | Consideration | 50 | | Release of exchange differences | 740 | | Less: Net liabilities disposed of | (316) | | **Gain** | **474** | | Consideration received in cash | 50 | | Less: Cash and cash equivalents disposed of | (39) | | **Net cash inflow from disposal** | **11** | [Business Review and Financial Analysis](index=13&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%BE%E4%B8%8E%E8%B4%A2%E5%8A%A1%E5%88%86%E6%9E%90) This section provides a review of the company's financial performance and business operations, highlighting revenue trends, segment performance, and key expense items [Financial Review](index=13&type=section&id=%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%BE) For the nine months ended September 30, 2023, the company's revenue significantly decreased by 84.27% to HK$200,712 thousand, primarily due to a sharp decline in demand for COVID-19 related testing services - Revenue for the third quarter of 2023 was **HK$200,712 thousand**, a significant decrease of **84.27%** compared to HK$1,275,751 thousand in the same period of 2022[147](index=147&type=chunk) - The decline in revenue was primarily due to a substantial drop in demand for COVID-19 nucleic acid testing services and rapid antigen test kits[147](index=147&type=chunk) [Business Review](index=13&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%BE) The company's business segments showed mixed performance in Q3 2023, with medical testing affected by post-pandemic demand, oncology immunotherapy and BNCT center construction progressing, and insurance brokerage rebounding strongly [Provision of Medical Laboratory Testing and Health Check Services](index=13&type=section&id=%E6%8F%90%E4%BE%9B%E9%86%AB%E5%AD%B8%E5%AF%A6%E9%A9%97%E5%AE%A4%E6%AA%A2%E6%B8%AC%E6%9C%8D%E5%8B%99%E5%8F%8A%E5%81%A5%E5%BA%B7%E6%AA%A2%E6%9F%A5%E6%9C%8D%E5%8B%99) Revenue for this segment significantly decreased by 82.24% to HK$185,559 thousand, mainly due to reduced demand for COVID-19 nucleic acid testing and slow local consumption recovery Medical Laboratory Testing and Health Check Services Revenue (Nine Months Ended September 30) | Indicator | 2023 (HK$ thousand) | 2022 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 185,559 | 1,044,983 | | Year-on-year change | -82.24% | - | - The demand decline was primarily due to the government's relaxation of COVID-19 quarantine regulations, leading to a significant drop in demand for nucleic acid testing services from cross-boundary travelers[26](index=26&type=chunk) [Provision of Oncology Immunotherapy Services](index=14&type=section&id=%E6%8F%90%E4%BE%9B%E8%85%AB%E7%98%A4%E5%85%8D%E7%96%AB%E7%B4%B0%E8%83%9E%E6%B2%BB%E7%99%82%E6%9C%8D%E5%8B%99) Phase I clinical trials for LY007 cell injection are progressing as planned, with 9 patients having completed cell reinfusion, full enrollment expected by Q1 2024, and Phase II preparations planned for Q2 2024 - Phase I clinical trials for LY007 cell injection (CD20-targeted CAR-T) have completed cell reinfusion for **9 patients** with B-cell non-Hodgkin lymphoma[117](index=117&type=chunk) - Full enrollment of all **12 patients** is expected by the end of the **first quarter of 2024** at the latest[3](index=3&type=chunk)[117](index=117&type=chunk) - Preparations for the pivotal Phase II clinical trials will commence in the **second quarter of 2024**[117](index=117&type=chunk) [Sale and Distribution of Healthcare-related and Pharmaceutical Products](index=14&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E4%BF%9D%E5%81%A5%E7%9B%B8%E9%97%9C%E5%8F%8A%E9%86%AB%E8%97%A5%E7%94%A2%E5%93%81) Revenue for this segment significantly decreased by 99.78% to HK$473 thousand, primarily due to reduced demand for rapid antigen test kits after the relaxation of COVID-19 quarantine regulations Sale of Healthcare and Pharmaceutical Products Revenue (Nine Months Ended September 30) | Indicator | 2023 (HK$ thousand) | 2022 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 473 | 216,557 | | Year-on-year change | -99.78% | - | - The company has signed a **five-year exclusive license and distribution agreement** with a Japanese pharmaceutical company for intravenous NMN powder products[118](index=118&type=chunk) [Construction of Boron Neutron Capture Therapy Cancer Treatment Center](index=15&type=section&id=%E5%BB%BA%E8%A8%AD%E7%A0%8B%E4%B8%AD%E5%AD%90%E4%BF%98%E8%8E%B2%E6%B2%BB%E7%99%82%E7%99%8C%E7%97%87%E6%B2%BB%E7%99%82%E4%B8%AD%E5%BF%83) Construction of the BNCT center is on schedule, with the main structure targeted for completion by end of 2023, operations expected by end of 2024 or early 2025, and a medical institution practice license already obtained - Construction of the Boron Neutron Capture Therapy (BNCT) center is progressing as planned, with the main structure targeted for completion by the **end of 2023**[120](index=120&type=chunk) - The BNCT center aims to commence operations by the **end of 2024 or early 2025**[4](index=4&type=chunk)[120](index=120&type=chunk) - The BNCT center obtained its medical institution practice license from the administration in **December 2022**, valid until **December 2027**[4](index=4&type=chunk)[152](index=152&type=chunk) [Provision of Logistics Services](index=15&type=section&id=%E6%8F%90%E4%BE%9B%E7%89%A9%E6%B5%81%E6%9C%8D%E5%8B%99) Revenue for this segment significantly decreased by 99.76% to HK$19 thousand, mainly due to intense market competition and reduced demand for testing supplies and sample logistics services Logistics Services Revenue (Nine Months Ended September 30) | Indicator | 2023 (HK$ thousand) | 2022 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 19 | 7,816 | | Year-on-year change | -99.76% | - | [Provision of Insurance Brokerage Services](index=15&type=section&id=%E6%8F%90%E4%BE%9B%E4%BF%9D%E9%9A%AA%E7%B6%93%E7%B4%80%E6%9C%8D%E5%8B%99) Revenue for this segment significantly increased by 1.31 times to HK$14,661 thousand, primarily benefiting from the lifting of travel restrictions for mainland Chinese customers visiting Hong Kong Insurance Brokerage Services Revenue (Nine Months Ended September 30) | Indicator | 2023 (HK$ thousand) | 2022 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 14,661 | 6,360 | | Year-on-year change | +131% | - | [Money Lending Business](index=16&type=section&id=%E6%94%BE%E5%82%B5%E6%A5%AD%E5%8B%99) The money lending business recorded no interest income and granted no new loans during the third quarter of 2023 - The money lending business recorded **no interest income** during the third quarter of 2023 (2022: HK$35 thousand)[155](index=155&type=chunk) - The Group did not grant any new loans during the third quarter of 2023[155](index=155&type=chunk) [Gross Profit and Gross Profit Margin](index=16&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) For the nine months ended September 30, 2023, gross profit significantly decreased to HK$49,923 thousand, with gross profit margin falling by 32.85 percentage points to 24.87%, mainly due to reduced medical testing revenue and rapid antigen test kit sales Gross Profit and Gross Profit Margin Key Data (Nine Months Ended September 30) | Indicator | 2023 (HK$ thousand) | 2022 (HK$ thousand) | | :--- | :--- | :--- | | Gross profit | 49,923 | 736,313 | | Gross profit margin | 24.87% | 57.72% | | Year-on-year change | -HK$686,390 thousand | -32.85 percentage points | - The decline in gross profit margin was primarily due to reduced medical laboratory testing service revenue and decreased sales of rapid antigen test kits[155](index=155&type=chunk) [Selling and Distribution Expenses](index=16&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E9%96%8B%E6%94%AF) For the nine months ended September 30, 2023, selling and distribution expenses slightly increased by 4.09% to HK$10,611 thousand, primarily due to higher staff costs Selling and Distribution Expenses (Nine Months Ended September 30) | Indicator | 2023 (HK$ thousand) | 2022 (HK$ thousand) | | :--- | :--- | :--- | | Selling and distribution expenses | 10,611 | 10,194 | | Year-on-year change | +4.09% | - | - The slight increase in selling and distribution expenses was mainly due to higher staff costs[124](index=124&type=chunk) [Administrative Expenses](index=16&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) For the nine months ended September 30, 2023, administrative expenses decreased by 30.99% to HK$108,728 thousand, mainly due to reduced staff and recruitment costs following the cessation of COVID-19 testing services Administrative Expenses (Nine Months Ended September 30) | Indicator | 2023 (HK$ thousand) | 2022 (HK$ thousand) | | :--- | :--- | :--- | | Administrative expenses | 108,728 | 157,555 | | Year-on-year change | -30.99% | - | - The decrease in administrative expenses was primarily due to a reduction of approximately **HK$36,730 thousand** in staff costs and recruitment expenses after ceasing to provide COVID-19 testing services[156](index=156&type=chunk) [Finance Costs](index=16&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) For the nine months ended September 30, 2023, finance costs increased to HK$3,936 thousand, primarily due to finance costs arising from convertible bonds issued on December 30, 2022 Finance Costs (Nine Months Ended September 30) | Indicator | 2023 (HK$ thousand) | 2022 (HK$ thousand) | | :--- | :--- | :--- | | Finance costs | 3,936 | 3,259 | | Year-on-year change | +20.78% | - | - The increase in finance costs was mainly due to finance costs arising from convertible bonds issued on **December 30, 2022**[184](index=184&type=chunk) [Loss for the Period](index=17&type=section&id=%E6%9C%AC%E6%9C%9F%E9%96%93%E8%99%A7%E6%90%8D) For the nine months ended September 30, 2023, net loss attributable to owners of the company was HK$65,976 thousand, mainly due to decreased demand for COVID-19 related testing services and rapid antigen test kit sales (Loss)/Profit for the Period (Nine Months Ended September 30) | Indicator | 2023 (HK$ thousand) | 2022 (HK$ thousand) | | :--- | :--- | :--- | | Net (loss)/profit attributable to owners of the company | (65,976) | 159,516 | - The shift from profit to loss was primarily due to decreased demand for nucleic acid testing services and rapid antigen test kits following the relaxation and cancellation of COVID-19 quarantine regulations[126](index=126&type=chunk) [Continuing Connected Transactions](index=17&type=section&id=%E6%8C%81%E7%BA%8C%E9%97%9C%E9%80%A3%E4%BA%A4%E6%98%93) The company renewed its master supply agreement with BGI Genomics for equipment, consumables, and reagents, and signed a sales and maintenance service contract with Sumitomo for BNCT components [Renewal of Master Supply Agreement](index=17&type=section&id=%E9%87%8D%E7%BA%8C%E6%9C%89%E9%97%9C%E7%B8%BD%E4%BE%9B%E6%87%89%E5%8D%94%E8%AD%B0) Hybribio Diagnostic Centre renewed its master supply agreement with BGI Genomics for equipment, consumables, and reagents, with an annual cap of HK$120,000 thousand - Hybribio Diagnostic Centre renewed its master supply agreement with BGI Genomics for the procurement of equipment, consumables, and reagents, with an annual cap of **HK$120,000 thousand** until **December 31, 2023**[158](index=158&type=chunk) [Purchase of Boron Neutron Capture Therapy Components and Maintenance Services](index=17&type=section&id=%E8%B3%BC%E8%B2%B7%E7%A0%8B%E4%B8%AD%E5%AD%90%E4%BF%98%E8%8E%B2%E6%B2%BB%E7%99%82%E9%83%A8%E4%BB%B6%E5%8F%8A%E7%B6%AD%E8%AD%B7%E6%9C%8D%E5%8B%99) Pengbo Hainan entered into a sales and maintenance service contract with Sumitomo for BNCT components (approx. HK$26,502 thousand) and maintenance services (approx. HK$21,919 thousand) - Pengbo Hainan entered into a contract with Sumitomo for the purchase of Boron Neutron Capture Therapy components, with an initial sales contract price of approximately **HK$26,502 thousand**[158](index=158&type=chunk) - Pengbo Hainan agreed to procure BNCT equipment maintenance services from Sumitomo for a consideration of approximately **HK$21,919 thousand**[158](index=158&type=chunk) [Future Outlook and Corporate Governance](index=18&type=section&id=%E6%9C%AA%E6%9D%A5%E5%B1%95%E6%9C%9B%E4%B8%8E%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86) This section outlines the company's future strategies, including business expansion, clinical trial progress, and adherence to corporate governance standards [Future Outlook](index=18&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) The company plans to expand medical testing and health check services, accelerate CAR-T clinical trials and BNCT center construction, and actively seek collaborations with medical platforms and insurance companies for innovative solutions - The company will expand routine medical testing services to high-throughput public health screening and collaborate with District Health Centres to provide services[160](index=160&type=chunk)[190](index=190&type=chunk) - It will actively seek collaborations with medical platforms and insurance companies to promote healthcare services and expand business in the Greater Bay Area[191](index=191&type=chunk) - The company will continue to offer customized services, enrich its diagnostic and health check business, and leverage biomedical research and technology to develop innovative solutions[133](index=133&type=chunk) - The company aims to be the **first provider of Boron Neutron Capture Therapy cancer services** in Greater China and has signed cooperation agreements with domestic hospitals[162](index=162&type=chunk)[192](index=192&type=chunk) [Major Acquisitions and Disposals of Subsidiaries, Associates, and Joint Ventures](index=20&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD) During the third quarter of 2023, the company did not undertake any other major acquisitions or disposals of subsidiaries, associates, or joint ventures - During the third quarter of 2023, the company did not undertake any other major acquisitions or disposals of subsidiaries, associates, or joint ventures[163](index=163&type=chunk) [Employees and Remuneration Policy](index=20&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E9%85%AC%E9%87%91%E6%94%BF%E7%AD%96) The company determines remuneration based on employee performance, experience, and market rates, offering discretionary bonuses, MPF, insurance, medical, and training benefits, along with share option and share award schemes - The company determines remuneration based on employee performance, experience, and market rates, and provides discretionary bonuses[134](index=134&type=chunk) - Other employee benefits include Mandatory Provident Fund, insurance, medical, training, and participation in share option and share award schemes[134](index=134&type=chunk) - For the nine months ended September 30, 2023, total staff costs were approximately **HK$72,193 thousand**, a decrease from the prior year[5](index=5&type=chunk) - As of September 30, 2023, the Group employed **180 full-time employees**, a reduction from 295 in the prior year[5](index=5&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures](index=21&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E5%88%B8%E4%B8%AD%E6%93%81%E6%9C%89%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of September 30, 2023, the company's directors and chief executive held long positions in company shares, associated corporation shares, and share options, with Mr. Liu Xiaolin holding 55.05% of the company's shares [Long Positions in Shares of the Company](index=21&type=section&id=%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD%E4%B9%8B%E5%A5%BD%E5%80%89) Mr. Liu Xiaolin held a long position representing 55.05% of the total issued shares of the company Directors' Long Positions in Shares of the Company (As of September 30, 2023) | Director Name | Capacity and Nature of Interest | Number of Shares | Approximate Percentage | | :--- | :--- | :--- | :--- | | Mr. Liu Xiaolin | Interest in controlled corporation | 529,500,546 | 54.97% | | | Beneficial owner | 792,000 | 0.08% | | **Total** | | **530,292,546** | **55.05%** | [Long Positions in Shares of Associated Corporations](index=22&type=section&id=%E6%96%BC%E7%9B%B8%E8%81%AF%E6%B3%95%E5%9C%98%E8%82%A1%E4%BB%BD%E4%B9%8B%E5%A5%BD%E5%80%89) Mr. Liu Xiaolin in Genius Earn and Genius Lead both held 100% beneficial ownership or controlled corporate interest Directors' Long Positions in Shares of Associated Corporations (As of September 30, 2023) | Director Name | Name of Associated Corporation | Nature of Interest | Approximate Percentage | | :--- | :--- | :--- | :--- | | Mr. Liu Xiaolin | Genius Earn | Beneficial owner | 100% | | | Genius Lead | Interest in controlled corporation | 100% | [Long Positions in Share Options Granted by the Company](index=22&type=section&id=%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%89%80%E6%8E%88%E5%87%BA%E8%B3%BC%E8%82%A1%E6%AC%8A%E4%B9%8B%E5%A5%BD%E5%80%89) Mr. He Xun and Ms. Xu Haiyin held 3,220,000 and 5,000,000 share options respectively, representing 0.33% and 0.52% of the total issued shares Directors' Long Positions in Share Options Granted by the Company (As of September 30, 2023) | Director Name | Nature of Interest | Exercise Period | Exercise Price Per Share | Total Long Position in Relevant Shares | Approximate Percentage | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. He Xun | Beneficial owner | September 2, 2023 to September 1, 2024 | HK$2.00 | 3,220,000 | 0.33% | | Ms. Xu Haiyin | Beneficial owner | January 5, 2023 to January 4, 2027 | HK$1.45 | 5,000,000 | 0.52% | | **Total** | | | | **8,220,000** | **0.85%** | [Substantial Shareholders' Discloseable Interests and Short Positions in Shares and Underlying Shares](index=23&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%96%BC%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E4%B8%AD%E6%8C%81%E6%9C%89%E7%9A%84%E9%A0%88%E4%BA%88%E5%85%AC%E4%BD%88%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of September 30, 2023, Genius Earn, Genius Lead, Guoyuan Securities Investment (Hong Kong) Co., Ltd., Guoyuan International Holdings Limited, Guoyuan Securities Co., Ltd., Richlane Ventures Limited, and Mr. Gao Zhenshun were substantial shareholders with significant interests in the company's shares and underlying shares Substantial Shareholders' Interests in Shares and Underlying Shares (As of September 30, 2023) | Shareholder Name/Entity | Capacity and Nature of Interest | Number of Ordinary Shares | Approximate Percentage | | :--- | :--- | :--- | :--- | | Genius Earn | Interest in controlled corporation | 529,500,546 | 54.97% | | Genius Lead | Beneficial owner | 529,500,546 | 54.97% | | Guoyuan Securities Investment (Hong Kong) Co., Ltd. | Beneficial owner | 54,137,931 | 5.62% | | | Person with security interest in shares | 187,903,805 | 19.51% | | Guoyuan International Holdings Limited | Interest in controlled corporation | 242,041,736 | 25.13% | | Guoyuan Securities Co., Ltd. | Interest in controlled corporation | 242,041,736 | 25.13% | | Richlane Ventures Limited | Beneficial owner | 58,000,000 | 6.02% | | Mr. Gao Zhenshun | Interest in controlled corporation | 95,545,000 | 9.92% | [Share Option Scheme](index=24&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The company adopted a share option scheme on May 29, 2014, to reward eligible participants; as of September 30, 2023, the balance of share options was 11,555,000, with Ms. Xu Haiyin granted 5,000,000 in 2023 - The company adopted a share option scheme on **May 29, 2014**, to reward eligible participants for their contributions to the Group's business success[202](index=202&type=chunk) Share Option Movement Details (As of September 30, 2023) | Grantee Category/Name | Balance as of January 1, 2023 | Granted during Q3 2023 | Lapsed during Q3 2023 | Balance as of September 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Subtotal for Directors | 6,760,000 | 5,000,000 | 3,540,000 | 8,220,000 | | Subtotal for Connected Entity Participants | 6,575,000 | – | 3,240,000 | 3,335,000 | | Subtotal for Employees | 1,180,000 | – | 1,180,000 | – | | **Total** | **14,515,000** | **5,000,000** | **7,960,000** | **11,555,000** | - Ms. Xu Haiyin was granted **5,000,000 share options** on **January 6, 2023**, with an exercise price of **HK$1.45** and a three-year vesting period[14](index=14&type=chunk)[173](index=173&type=chunk) [Share Award Scheme](index=27&type=section&id=%E8%82%A1%E4%BB%BD%E7%8D%8E%E5%8B%B5%E8%A8%88%E5%8A%83) The company adopted a share award scheme on August 18, 2021, to reward eligible participants; as of September 30, 2023, the trustee held 7,038,000 company shares, purchased 5,295,000 shares, and awarded 582,000 shares during the quarter [Purpose and Participants of the Share Award Scheme](index=27&type=section&id=%E8%82%A1%E4%BB%BD%E7%8D%8E%E5%8B%B5%E8%A8%88%E5%8A%83%E4%B9%8B%E7%9B%AE%E7%9A%84%E5%8F%8A%E5%8F%83%E8%88%87%E8%80%85) The share award scheme aims to reward eligible participants, including employees, connected entities, and service providers, for their contributions to the Group's business success - The share award scheme was adopted on **August 18, 2021**, to reward eligible participants for their contributions to the Group's business success[175](index=175&type=chunk) [Total Number of Shares Available for Grant](index=27&type=section&id=%E5%8F%AF%E4%BE%9B%E7%99%BC%E8%A1%8C%E7%9A%84%E8%82%A1%E4%BB%BD%E7%B8%BD%E6%95%B8) As of the announcement date, 95,741,115 award shares, representing 9.94% of the total issued shares, remained available for grant under the share award scheme - As of the announcement date, **95,741,115 award shares**, representing **9.94%** of the total issued shares, remained available for grant under the share award scheme[235](index=235&type=chunk) - Under the scheme, the total number of shares awarded shall not exceed **10%** of the company's total issued shares on the adoption date (i.e., **963,231,150 shares**)[19](index=19&type=chunk) [Maximum Entitlement of Participants](index=27&type=section&id=%E5%8F%83%E8%88%87%E8%80%85%E7%9A%84%E6%AC%8A%E7%9B%8A%E4%B8%8A%E9%99%90) The maximum entitlement for any single participant under the share award scheme shall not exceed 1% of the company's total issued shares on the adoption date - The maximum entitlement for any single participant under the share award scheme shall not exceed **1%** of the company's total issued shares on the adoption date[236](index=236&type=chunk) [Vesting and Conditions](index=28&type=section&id=%E6%AD%B8%E5%B1%AC%E5%8F%8A%E6%A2%9D%E4%BB%B6) The Board may determine the vesting criteria, conditions, and periods for awards, which will be stipulated in the relevant award letters - The Board may determine the vesting criteria, conditions, and periods for awards, which will be stipulated in the relevant award letters[224](index=224&type=chunk) [Basis for Determining Purchase Price](index=28&type=section&id=%E9%87%90%E5%AE%9A%E8%B3%BC%E8%B2%B7%E5%83%B9%E7%9A%84%E5%9F%BA%E6%BA%96) The Board may instruct the trustee to subscribe for or purchase existing shares of the company, with the purchase price range adhering to applicable laws and GEM Listing Rules - The Board may instruct the trustee to subscribe for or purchase existing shares of the company, with the purchase price range adhering to applicable laws and GEM Listing Rules[224](index=224&type=chunk) [Remaining Term of the Scheme](index=28&type=section&id=%E8%A8%88%E5%8A%83%E7%9A%84%E5%89%A9%E9%A4%98%E6%9C%9F%E9%99%90) The share award scheme has a validity period of 10 years and will expire on August 17, 2031 - The share award scheme has a validity period of **10 years** and will expire on **August 17, 2031**[225](index=225&type=chunk) [Directors' Rights to Acquire Shares and Debentures](index=28&type=section&id=%E8%91%A3%E4%BA%8B%E6%94%B6%E8%B3%BC%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E7%9A%84%E6%AC%8A%E5%88%A9) Except for share options granted to three directors and shares awarded to one director, the company and its subsidiaries have not entered into any arrangements enabling directors to benefit from acquiring shares or debentures - Except for share options granted to three directors and shares awarded to one director, the company and its subsidiaries have not entered into any arrangements enabling directors to benefit from acquiring shares or debentures[225](index=225&type=chunk) [Pre-emptive Rights](index=28&type=section&id=%E5%84%AA%E5%85%88%E8%B3%BC%E8%B2%B7%E6%AC%8A) Neither the company's bye-laws nor Bermuda law contains provisions or restrictions regarding pre-emptive rights - Neither the company's bye-laws nor Bermuda law contains provisions or restrictions regarding pre-emptive rights[226](index=226&type=chunk) [Purchase, Sale, or Redemption of Listed Securities](index=29&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B3%96%E5%9B%9E%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the third quarter of 2023, the share award scheme trustee purchased 5,295,000 company shares for a total consideration of approximately HK$4,185 thousand, all held in trust by the trustee - During the third quarter of 2023, the share award scheme trustee purchased **5,295,000 company shares** for a total consideration of approximately **HK$4,185 thousand**[221](index=221&type=chunk) Trustee Share Purchase Details (Q3 2023) | Month | Number of Shares | Highest Purchase Price Per Share (HK$) | Lowest Purchase Price Per Share (HK$) | Approximate Total Consideration (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | June | 1,975,000 | 1.00 | 0.93 | 1,934 | | August | 1,050,000 | 0.70 | 0.59 | 676 | | September | 2,270,000 | 0.79 | 0.58 | 1,575 | | **Total** | **5,295,000** | | | **4,185** | [Compliance with the Code of Conduct for Securities Transactions by Directors](index=29&type=section&id=%E9%81%B5%E5%AE%88%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E8%A1%8C%E7%82%BA%E5%AE%88%E5%89%87) The company has adopted a code of conduct for directors' securities transactions no less stringent than the GEM Listing Rules, confirming all directors complied during the third quarter of 2023 - The company has adopted a code of conduct for directors' securities transactions no less stringent than the GEM Listing Rules, and confirms all directors complied with this code during the third quarter of 2023[228](index=228&type=chunk) [Corporate Governance Code](index=29&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F%E5%AE%88%E5%89%87) The company is committed to maintaining high corporate governance standards and confirms compliance with the code provisions of Appendix 15 to the GEM Listing Rules' Corporate Governance Code throughout the third quarter of 2023 - The company is committed to maintaining high corporate governance standards and confirms compliance with the code provisions of Appendix 15 to the GEM Listing Rules' Corporate Governance Code throughout the third quarter of 2023[229](index=229&type=chunk)[239](index=239&type=chunk) [Competing Interests and Conflicts of Interest](index=29&type=section&id=%E7%AB%B6%E7%88%AD%E6%AC%8A%E7%9B%8A%E5%8F%8A%E5%88%A9%E7%9B%8A%E8%A1%9D%E7%AA%81) During the third quarter of 2023, no directors, controlling shareholders, or their close associates had any direct or indirect business interests competing or potentially competing with the Group's business, nor any conflicts of interest - During the third quarter of 2023, no directors, controlling shareholders, or their close associates had any direct or indirect business interests competing or potentially competing with the Group's business, nor any conflicts of interest[239](index=239&type=chunk) [Audit Committee](index=30&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising three independent non-executive directors, is responsible for reviewing and overseeing the Group's financial reporting process and internal controls, and has reviewed the unaudited quarterly results - The Audit Committee comprises **three independent non-executive directors** and is responsible for reviewing and overseeing the Group's financial reporting process and internal controls[232](index=232&type=chunk) - The Audit Committee has reviewed the unaudited condensed consolidated quarterly results for the period and discussed internal controls and financial reporting matters[240](index=240&type=chunk) [Sufficiency of Public Float](index=30&type=section&id=%E5%85%AC%E7%9C%BE%E6%8C%81%E8%82%A1%E9%87%8F%E4%B9%8B%E5%85%85%E8%B6%B3%E6%80%A7) The company has maintained a public float in compliance with the GEM Listing Rules - The company has maintained a public float in compliance with the GEM Listing Rules[241](index=241&type=chunk) [General Information](index=30&type=section&id=%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) The Board of Directors comprises three executive directors, one non-executive director, and three independent non-executive directors, with Mr. Liu Xiaolin serving as Chairman and Executive Director - The Board of Directors includes **three executive directors** (Mr. Liu Xiaolin, Mr. He Xun, Mr. Huang Song), **one non-executive director** (Ms. Xu Haiyin), and **three independent non-executive directors** (Mr. Yan Guoxiang, Dr. He Junjie, Mr. Qian Hongji)[243](index=243&type=chunk)

Financial Performance - The net cash generated from operating activities for the six months ended June 30, 2023, was HKD 310,855,000, compared to HKD 184,025,000 for the same period in 2022, representing an increase of 68.8%[8]. - Revenue from medical laboratory testing and health check services for the six months ended June 30, 2023, was HKD 170,525,000, down 63.0% from HKD 460,906,000 in the same period of 2022[17]. - Revenue from the sale and distribution of health-related and pharmaceutical products decreased by 83.5% to HKD 356,000 from HKD 215,402,000 year-on-year[17]. - The group’s revenue for the six months ended June 30, 2023, was approximately HKD 182,357,000, a significant decrease of about 73.45% compared to approximately HKD 686,909,000 for the same period in 2022[107]. - The gross profit for the first half of 2023 was approximately HKD 61,326,000, a decrease of about HKD 293,578,000 compared to approximately HKD 354,904,000 in the first half of 2022, with a gross margin of 33.63%, down 18.04 percentage points from 51.67%[116]. - The company recorded a net loss attributable to shareholders of approximately HKD 30,484,000 for the first half of 2023, a significant decline from a net profit of HKD 68,220,000 in the same period of 2022[142]. Cash and Liquidity - The total cash and cash equivalents at the end of the period was HKD 245,396,000, up from HKD 204,884,000 in the previous year, reflecting a growth of 19.7%[8]. - The company reported a net cash outflow from investing activities of HKD 144,737,000, compared to HKD 122,600,000 in the previous year, indicating increased investment expenditures[8]. - As of June 30, 2023, the cash and bank balance was approximately HKD 245,396,000, an increase of about HKD 152,626,000 from HKD 92,770,000 on December 31, 2022[151]. - The company’s liquidity ratio improved to 2.14 times as of June 30, 2023, compared to 1.61 times at the end of 2022[130]. Equity and Liabilities - The total equity attributable to owners of the company decreased to HKD 544,374,000 from HKD 602,675,000, a decline of 9.7%[1]. - The total liabilities increased significantly, with current liabilities rising to HKD 172,585,000 from HKD 548,664,000, indicating a substantial change in the company's financial position[1]. - The total equity and liabilities amounted to HKD 904,083,000, down from HKD 1,470,491,000, reflecting a significant reduction in the company's overall financial structure[1]. - The company’s debt-to-asset ratio improved to approximately 27.34% as of June 30, 2023, compared to 43.79% at the end of 2022[130]. Investments and Capital Expenditures - The company has capital commitments of approximately HKD 235.99 million as of June 30, 2023, compared to HKD 237.54 million as of December 31, 2022[71]. - The company has entered into an agreement with Sumitomo for technical advisory services related to the installation and commissioning of boron neutron capture therapy equipment, with a service fee of approximately HKD 21.66 million[72]. - The company has entered into agreements to purchase boron neutron capture therapy equipment and drugs, aiming to be the first provider of this treatment in Greater China[126]. - The investment in boron neutron capture therapy projects has utilized approximately HKD 23,340,000, with a remaining balance of HKD 22,246,000 as of June 30, 2023[155]. Employee Costs and Compensation - Employee costs, including salaries and bonuses, decreased to HKD 19,562,000 for the three months ended June 30, 2023, down 33.1% from HKD 29,183,000 in the same period of 2022[24]. - The total employee cost for the first half of 2023 was approximately HKD 51,621,000, down from HKD 59,941,000 in the same period of 2022[163]. - The company recorded a total compensation for key management personnel of HKD 4,575,000 for the six months ended June 30, 2023, compared to HKD 4,869,000 for the same period in 2022[105]. Business Operations and Strategy - The company is committed to building and operating a cancer treatment center in Hainan, utilizing a boron neutron capture therapy system, with a medical institution practice license granted for five years until December 2027[112][113]. - The company has established laboratory testing service agreements with nine out of eighteen designated regional health center operators in Hong Kong to expand its health screening services[123]. - The company has launched several new tests, including HPV DNA tests and colorectal cancer DNA tests, to meet anticipated demand[124]. - The company is seeking collaborations with hospitals and clinical laboratories to expand its next-generation sequencing (NGS) testing services[125]. Share Capital and Stock Options - The total number of issued shares of the company was 963,231,150, with a par value of HKD 0.10 per share[169]. - The company has issued stock options for up to 5,000,000 shares, representing approximately 0.52% of the total issued shares as of January 6, 2023[144]. - The company has a stock option plan adopted to reward eligible participants for their contributions to the group's success[174]. - The stock options granted in August 2019 have an exercise price ranging from HKD 2.00 to HKD 2.20, with a total of 3,335,000 options available[200].

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） 截至二零二三年六月三十日止六個月 中期業績公告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在主板 上市的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風 險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣 之證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量 的市場。 香港交易及結算所有限公司及聯交所對本公告之內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生 或因倚賴該等內容而引致之任何損失承擔任何責任。 本公告的資料乃遵照《GEM證券上市規則》（「GEM上市規則」）而刊載，旨在提供 有關中國生物科技服務控股有限公司（「本公司」）的資料；本公司的董事（「董事」） 願就本公告的資料共同及個別地承擔全部責 ...

[Supplementary Announcement](index=1&type=section&id=Supplementary%20Announcement) This supplementary announcement updates the annual report for the year ended December 31, 2022, regarding net proceeds usage [Announcement Overview](index=1&type=section&id=Announcement%20Overview) This supplementary announcement from China Biotech Services Holdings Limited updates the 2022 annual report, primarily on net proceeds usage - The announcement is a supplementary announcement, providing further details for the annual report for the year ended December 31, 2022[2](index=2&type=chunk)[7](index=7&type=chunk) - The issuing company is China Biotech Services Holdings Limited (Stock Code: **8037**)[7](index=7&type=chunk) - This announcement supplements the company's annual report published on March 29, 2023, for the year ended December 31, 2022[7](index=7&type=chunk) [Update on Use of Net Proceeds](index=1&type=section&id=Update%20on%20Use%20of%20Net%20Proceeds) The company updated the proposed use of net proceeds for 2022, detailing unutilized balances and timelines for BNCT project, R&D, and working capital, with no material changes confirmed [Investment in Boron Neutron Capture Therapy Project](index=1&type=section&id=Investment%20in%20Boron%20Neutron%20Capture%20Therapy%20Project) This section details the allocation and expected utilization timeline for net proceeds designated for the BNCT project Use of Net Proceeds for Boron Neutron Capture Therapy Project (As of December 31, 2022) | Proposed Use | Net Proceeds (HKD '000) | Net Proceeds (USD) | Used as of Dec 31, 2022 (HKD '000) | Balance as of Dec 31, 2022 (HKD '000) | Proposed Use and Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | | Investment in Boron Neutron Capture Therapy Project | 23,340 | 3,000,000 | None | 23,340 | The remaining unutilized amount of **HKD 23,340,000** will be used for investment in the Boron Neutron Capture Therapy project, expected to be fully utilized by **September 30, 2023** at the latest | [R&D Costs and General Working Capital](index=2&type=section&id=R%26D%20Costs%20and%20General%20Working%20Capital) This section outlines the allocation and expected utilization timeline for net proceeds designated for R&D and general working capital Use of Net Proceeds for R&D Costs and General Working Capital (As of December 31, 2022) | Proposed Use | Net Proceeds (HKD '000) | Net Proceeds (USD) | Used as of Dec 31, 2022 (HKD '000) | Balance as of Dec 31, 2022 (HKD '000) | Proposed Use and Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | | R&D Costs and General Working Capital | 15,124 | 1,944,000 | None | 15,124 | The remaining unutilized amount of **HKD 15,124,000** will be used for R&D costs and general working capital, expected to be fully utilized by **September 30, 2023** at the latest | - The primary update concerns the proposed use of net proceeds as presented in the table on page 18 of the annual report[8](index=8&type=chunk) - The Board confirmed that the net proceeds have been or are intended to be used in accordance with previously disclosed intentions, and directors are unaware of any material changes to the proposed use[10](index=10&type=chunk) [Board Members](index=2&type=section&id=Board%20Members) The Board of Directors comprises seven members: three executive, one non-executive, and three independent non-executive directors - The Board of Directors consists of **seven members**[5](index=5&type=chunk) - Executive Directors include Mr Liu Xiaolin (Chairman), Mr He Xun, and Mr Huang Song[5](index=5&type=chunk) - Non-Executive Director includes Ms Xu Haiyin[5](index=5&type=chunk) - Independent Non-Executive Directors include Mr Yan Guoxiang, Dr He Junjie, and Mr Qian Hongji[5](index=5&type=chunk) [Other Important Information and Disclaimer](index=1&type=section&id=Other%20Important%20Information%20and%20Disclaimer) All other annual report information remains unchanged; the Board assumes full responsibility for this announcement's accuracy and completeness - All other information contained in the annual report remains unchanged, except as disclosed in this announcement[11](index=11&type=chunk) - This announcement is published in compliance with the GEM Listing Rules of The Stock Exchange of Hong Kong Limited, aiming to provide information about the company[12](index=12&type=chunk) - The Directors collectively and individually accept full responsibility for the information in this announcement, confirming its accuracy, completeness, and absence of misleading or fraudulent content or omissions[12](index=12&type=chunk) - This announcement will be published on the website of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the company's website (www.cbshhk.com) for at least seven consecutive days from the date of publication[12](index=12&type=chunk) - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited assume no responsibility for the contents of this announcement and make no representation as to its accuracy or completeness[1](index=1&type=chunk)

Revenue Performance - The insurance brokerage segment's revenue decreased from approximately HKD 3,460,000 in Q1 2022 to about HKD 1,192,000 in Q1 2023, a decline of 65.55% due to intense market competition [1]. - The logistics services segment's revenue fell from approximately HKD 3,199,000 in Q1 2022 to about HKD 2,000 in Q1 2023, a significant drop of 99.94% attributed to reduced demand for testing supplies and sample logistics services [4]. - Total revenue for the first quarter of 2023 was HKD 130,561 thousand, a decrease of 65.9% compared to HKD 384,157 thousand in the same period of 2022 [37]. - For the three months ended March 31, 2023, revenue from medical laboratory testing and health check services was HKD 129,065 thousand, a decrease of 20.6% compared to HKD 162,662 thousand in the same period of 2022 [54]. - Revenue from the sale and distribution of health-related and pharmaceutical products was HKD 302 thousand, down significantly from HKD 214,752 thousand year-on-year [54]. - The sales and distribution segment for healthcare and pharmaceutical products saw a significant revenue drop from approximately HKD 214,752,000 in Q1 2022 to about HKD 302,000 in Q1 2023, a decrease of approximately 99.86% [101]. - The decline in revenue was attributed to reduced demand for rapid antigen test kits following the relaxation of COVID-19 quarantine regulations [101]. Profitability and Loss - The group recorded a gross profit of approximately HKD 49,161,000 in Q1 2023, down about HKD 140,571,000 from HKD 189,732,000 in Q1 2022, with a gross profit margin of 37.65%, a decrease of 11.75 percentage points year-on-year [6]. - The company reported a net loss attributable to shareholders of approximately HKD 15,375,000 in Q1 2023, compared to a net profit of HKD 34,938,000 in Q1 2022, mainly due to decreased demand for COVID-19 testing services [10]. - The company reported an operating loss of HKD 1,091 thousand for the first quarter of 2023, compared to an operating profit of HKD 133,261 thousand in the same period last year [37]. - The net loss for the period was HKD 7,781 thousand, a stark contrast to a profit of HKD 106,585 thousand in the first quarter of 2022 [37]. - The company reported a loss attributable to owners of the company of HKD 15,375,000 for the first quarter of 2023, compared to a profit of HKD 34,938,000 in the first quarter of 2022 [75]. - The total comprehensive loss for the period was HKD 28,892 thousand, compared to a total comprehensive income of HKD 6,048 thousand in the same period of 2022 [54]. Expenses and Costs - Administrative expenses were approximately HKD 44,717,000 in Q1 2023, a decrease of about HKD 9,623,000 or 17.71% compared to HKD 54,340,000 in Q1 2022, primarily due to reduced research and development costs [8]. - Financing costs increased to approximately HKD 1,353,000 in Q1 2023 from HKD 1,217,000 in Q1 2022, primarily due to costs associated with convertible bonds issued [9]. - Sales and distribution expenses were approximately HKD 3,720,000 in Q1 2023, a slight decrease of about HKD 185,000 or 4.74% from HKD 3,905,000 in Q1 2022, maintaining a stable level [7]. Strategic Initiatives and Future Outlook - The company entered into a total supply agreement with BGI Genomics for a maximum annual transaction limit of HKD 120,000,000, effective from January 18, 2023 [11]. - The company has committed a total of HKD 1.9 billion for the development of community health centers, expecting regular government funding to support future operations [16]. - The company anticipates continued growth in demand for health check and related medical services in Hong Kong due to increased public health awareness and an aging population [16]. - The company is actively seeking partnerships with various medical platforms and insurance companies to expand its healthcare services in the Greater Bay Area [18]. - New tests, including HPV DNA tests and colorectal cancer DNA tests, have been launched to meet anticipated demand [18]. - The company is preparing for FDA testing product validation in collaboration with hospitals and surgeons, aiming to enhance personalized precision health services [18]. - The company aims to leverage advancements in biomedical research and technology to develop innovative solutions for precision diagnosis and treatment [26]. - The company is focusing on expanding its cancer diagnostic and treatment platform, although specific future projections were not detailed in the report [41]. - The company continues to explore new product development and market expansion strategies to enhance its service offerings in the biotechnology sector [41]. - The company aims to expand its healthcare product offerings through strategic partnerships and new product introductions [101]. Corporate Governance and Compliance - The company complied with the GEM Listing Rules and corporate governance code during the first quarter of 2023 [139]. - The board has established an audit committee to comply with GEM Listing Rules 5.28 and 5.29, consisting of three independent non-executive directors [140]. - The board emphasizes the importance of corporate governance and is committed to maintaining high standards and compliance with legal and regulatory requirements [150]. - The company confirmed that all directors complied with the trading standards and the code of conduct for securities trading during the first quarter of 2023 [149]. - The company has maintained the public float as specified by the GEM Listing Rules as of the report date [152]. - The board consists of four executive directors and three independent non-executive directors, ensuring a balanced governance structure [142]. Shareholder Information - As of March 31, 2023, the total issued shares of the company amounted to 963,231,150 ordinary shares [110]. - Major shareholder Genius Earn holds approximately 54.97% of the company's shares, totaling 529,500,546 shares [109]. - The company has a total of 96,323,115 shares available for issuance under the share incentive plan, representing 10% of the total issued shares as of the plan's adoption date [132]. - The share incentive plan has a remaining term of 10 years, expiring on August 17, 2031 [136]. - The company granted stock options to three directors on August 20, 2019, September 2, 2020, and January 6, 2023 [136]. - The total number of stock options exercisable during the first quarter of 2023 was 11,760,000 [130]. - The company did not purchase, sell, or redeem any listed securities during the first quarter of 2023 [137]. - The company has not established any arrangements for directors to benefit from acquiring shares or debt securities of the company or any other entity during the first quarter of 2023 [136].

Report Overview and Disclaimer [Characteristics of the GEM Market and Disclaimer](index=1&type=section&id=GEM%E5%B8%82%E5%9C%BA%E7%89%B9%E8%89%B2%E4%B8%8E%E5%85%8D%E8%B4%A3%E5%A3%B0%E6%98%8E) The report highlights the high volatility and uncertain liquidity of GEM market securities, advising investor caution - GEM-listed companies are generally small to medium-sized, and their securities may experience **significant market volatility** with no guarantee of high liquidity[2](index=2&type=chunk) - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement and disclaim any liability for any loss arising therefrom[12](index=12&type=chunk) [Directors' Responsibility Statement](index=1&type=section&id=%E8%91%A3%E4%BA%8B%E8%B4%A3%E4%BB%BB%E5%A3%B0%E6%98%8E) The company's directors collectively and individually accept full responsibility for this announcement's accuracy and completeness - The company's directors confirm that the information contained in this announcement is accurate and complete in all material respects, not misleading or deceptive, and contains no omissions[3](index=3&type=chunk) Unaudited Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the three months ended March 31, 2023, the Group shifted from a profit to a loss, driven by a sharp decline in revenue and a lower gross profit margin **Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the three months ended March 31):** | Metric | 2023 (HK$'000) | 2022 (HK$'000) | Change (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total proceeds | 130,561 | 384,157 | (253,596) | -66.01% | | Revenue | 130,561 | 384,088 | (253,527) | -66.01% | | Cost of sales | (81,400) | (194,356) | 112,956 | -58.12% | | Gross profit | 49,161 | 189,732 | (140,571) | -74.09% | | Operating (loss)/profit | (1,091) | 133,261 | (134,352) | -100.82% | | (Loss)/profit before tax | (3,960) | 132,044 | (136,004) | -103.00% | | (Loss)/profit for the period | (7,781) | 106,585 | (114,366) | -107.31% | | (Loss)/profit for the period attributable to owners of the Company | (15,375) | 34,938 | (50,313) | -144.00% | [Condensed Consolidated Statement of Changes in Equity](index=4&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) As of March 31, 2023, total comprehensive loss attributable to owners was HK$16,500 thousand, a reversal from last year's total comprehensive income of HK$6,046 thousand **Summary of Condensed Consolidated Statement of Changes in Equity (For the three months ended March 31):** | Metric | 2023 (HK$'000) | 2022 (HK$'000) | | :--- | :--- | :--- | | Total equity at January 1 (audited) | 826,520 | 465,895 | | Total comprehensive (loss)/income for the period | (8,817) | 75,030 | | Total comprehensive (loss)/income attributable to owners of the Company | (16,500) | 6,046 | | Total comprehensive (loss)/income attributable to non-controlling interests | 7,683 | 68,984 | | Total equity at March 31 (unaudited) | 824,061 | 540,925 | Notes to the Financial Statements [General Information](index=6&type=section&id=%E4%B8%80%E8%88%AC%E8%B5%84%E6%96%99) The company, an investment holding company incorporated in the Cayman Islands and continued in Bermuda, operates in medical testing, immunotherapy, healthcare products, and insurance brokerage - The Company is an investment holding company, and its subsidiaries are principally engaged in medical laboratory and health check services in Hong Kong, oncologic immunocellular therapy and health management in China, sales of healthcare and pharmaceutical products in China and Hong Kong, and insurance brokerage services[45](index=45&type=chunk) - The Company's issued shares have been listed on the GEM of the Stock Exchange since June 17, 2004[20](index=20&type=chunk) [Basis of Preparation and Principal Accounting Policies](index=6&type=section&id=%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80%E5%8F%8A%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96) The unaudited first-quarter results were prepared under the historical cost basis and in accordance with Hong Kong Financial Reporting Standards, with no material impact from new standards - The results were prepared under the historical cost basis and in accordance with Hong Kong Financial Reporting Standards, and the adoption of new and revised HKFRSs did not have a material financial impact on the operating results and financial position[21](index=21&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk) [Revenue](index=7&type=section&id=%E8%90%A5%E4%B8%9A%E9%A2%9D) First-quarter 2023 revenue declined sharply due to reduced income from medical testing, healthcare products, insurance brokerage, and logistics services **Revenue Breakdown (For the three months ended March 31):** | Service Category | 2023 (HK$'000) | 2022 (HK$'000) | Change (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Medical laboratory and health check services | 129,065 | 162,662 | (33,597) | -20.65% | | Sales of healthcare and pharmaceutical products | 302 | 214,752 | (214,450) | -99.86% | | Insurance brokerage services | 1,192 | 3,460 | (2,268) | -65.55% | | Logistics services | 2 | 3,199 | (3,197) | -99.94% | | Money lending business | – | 15 | (15) | -100.00% | | **Total Revenue** | **130,561** | **384,088** | **(253,527)** | **-66.01%** | [Other Income and Gains/(Losses)](index=8&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%2F(%E4%BA%8F%E6%8D%9F)) Other income and gains recorded a net loss of HK$1,815 thousand in Q1 2023, a significant increase from the prior year's loss, mainly due to exchange losses **Other Income and Gains/(Losses) (For the three months ended March 31):** | Metric | 2023 (HK$'000) | 2022 (HK$'000) | | :--- | :--- | :--- | | Interest income | 700 | 12 | | Government subsidies | 23 | – | | Sundry income | 130 | 142 | | Exchange loss, net | (1,209) | (255) | | Loss on write-off of property, plant and equipment | (1,459) | (99) | | **Total** | **(1,815)** | **(200)** | [Finance Costs](index=8&type=section&id=%E8%9E%8D%E8%B5%84%E6%88%90%E6%9C%AC) Finance costs for the first quarter of 2023 increased to HK$1,353 thousand, primarily due to higher effective interest on convertible bonds **Finance Costs (For the three months ended March 31):** | Metric | 2023 (HK$'000) | 2022 (HK$'000) | | :--- | :--- | :--- | | Other borrowings | – | 138 | | Effective interest on convertible bonds | 1,100 | 950 | | Lease liabilities | 253 | 129 | | **Total** | **1,353** | **1,217** | [Income Tax Expense](index=9&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E%E5%BC%80%E6%94%AF) First-quarter 2023 income tax expense decreased significantly to HK$3,821 thousand from HK$25,459 thousand last year, mainly due to lower Hong Kong Profits Tax **Income Tax Expense (For the three months ended March 31):** | Metric | 2023 (HK$'000) | 2022 (HK$'000) | | :--- | :--- | :--- | | Hong Kong Profits Tax | 4,141 | 25,803 | | Deferred tax (for the period) | (320) | (344) | | **Total** | **3,821** | **25,459** | - China Enterprise Income Tax is calculated at a rate of **25%**, with high-tech enterprises enjoying a preferential rate of **15%**[29](index=29&type=chunk)[53](index=53&type=chunk) [Dividend](index=9&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend the payment of any dividend for the three months ended March 31, 2023, consistent with the prior year period - The Board does not recommend the payment of any dividend for the three months ended March 31, 2023[31](index=31&type=chunk)[54](index=54&type=chunk) [(Loss)/Earnings Per Share](index=10&type=section&id=%E6%AF%8F%E8%82%A1(%E4%BA%8F%E6%8D%9F)%2F%E7%9B%88%E5%88%A9) Basic and diluted loss per share for Q1 2023 was HK$0.016, compared to earnings per share of HK$0.036 in the prior year period, driven by the net loss attributable to owners **(Loss)/Earnings Per Share (For the three months ended March 31):** | Metric | 2023 (HK$'000) | 2022 (HK$'000) | | :--- | :--- | :--- | | (Loss)/profit for the period attributable to owners of the Company | (15,375) | 34,938 | | Weighted average number of ordinary shares ('000) | 963,231 | 963,231 | | **Basic and diluted (loss)/earnings per share (HK$)** | **(0.016)** | **0.036** | - Diluted loss per share for Q1 2023 was the same as basic loss per share due to the anti-dilutive effect of outstanding share options[79](index=79&type=chunk) Financial Review [Overall Revenue Analysis](index=11&type=section&id=%E6%95%B4%E4%BD%93%E8%90%A5%E4%B8%9A%E9%A2%9D%E5%88%86%E6%9E%90) Q1 2023 revenue fell 66.01% to HK$130,561 thousand, primarily due to reduced demand for nucleic acid testing and antigen test kits following relaxed quarantine measures - In the first quarter of 2023, revenue was **HK$130,561 thousand**, a significant decrease of **66.01%** from HK$384,088 thousand in the same period of 2022[59](index=59&type=chunk) - The decline was mainly attributable to the negative impact of rapid changes in the COVID-19 pandemic and the relaxation of quarantine measures by the Hong Kong government on demand for nucleic acid testing services and rapid antigen test kits[59](index=59&type=chunk) [Segment Revenue Analysis](index=11&type=section&id=%E5%88%86%E9%83%A8%E8%90%A5%E4%B8%9A%E9%A2%9D%E5%88%86%E6%9E%90) All major business segments experienced significant revenue declines, with healthcare products and logistics services showing the largest drops due to policy changes and market competition - All segments saw a sharp decline in revenue, with sales of healthcare and pharmaceutical products down **99.86%**, logistics services down **99.94%**, insurance brokerage services down **65.55%**, and medical laboratory and health check services down **20.65%**[60](index=60&type=chunk)[62](index=62&type=chunk)[39](index=39&type=chunk)[64](index=64&type=chunk) [Medical Laboratory and Health Check Services](index=11&type=section&id=%E5%8C%BB%E6%A3%80%E5%8F%8A%E5%81%A5%E5%BA%B7%E6%A3%80%E6%9F%A5%E6%9C%8D%E5%8A%A1) This segment's revenue decreased by 20.65% to HK$129,065 thousand, mainly due to reduced demand for nucleic acid testing services at border control points - Revenue from medical laboratory and health check services decreased by **20.65%** from HK$162,662 thousand to **HK$129,065 thousand**, primarily due to a decline in demand for COVID-19 nucleic acid testing services at border control points[60](index=60&type=chunk) [Oncologic Immunocellular Therapy Services](index=12&type=section&id=%E8%82%BF%E7%98%A4%E5%85%8D%E7%96%AB%E7%BB%86%E8%83%9E%E6%B2%BB%E7%96%97%E6%9C%8D%E5%8A%A1) This segment generated no revenue in Q1 2023, but the Phase I clinical trial for its LY007 CAR-T cell injection is proceeding as planned - The oncologic immunocellular therapy services segment did not generate any revenue during the first quarter of 2023[38](index=38&type=chunk) - The Phase I clinical trial for LY007 cell injection, China's first CD20-targeted CAR-T therapy product, commenced in January 2022, with the first cohort of four patients having completed cell infusion[38](index=38&type=chunk) [Sales of Healthcare and Pharmaceutical Products](index=12&type=section&id=%E4%BF%9D%E5%81%A5%E5%8F%8A%E5%8C%BB%E8%8D%AF%E4%BA%A7%E5%93%81%E9%94%80%E5%94%AE) This segment's revenue plummeted 99.86% to HK$302 thousand due to a drop in demand for rapid antigen test kits after quarantine rules were relaxed - Revenue from sales of healthcare and pharmaceutical products decreased sharply by **99.86%** from HK$214,752 thousand to **HK$302 thousand**, mainly due to a decline in demand for rapid antigen test kits[62](index=62&type=chunk) - To strengthen this segment, the Group entered into a five-year license and distribution agreement with a Japanese supplier for NMN powder products for exclusive distribution in Hong Kong and Macau[62](index=62&type=chunk) [Insurance Brokerage Services](index=12&type=section&id=%E4%BF%9D%E9%99%A9%E7%BB%8F%E7%BA%AA%E6%9C%8D%E5%8A%A1) This segment's revenue decreased by 65.55% to HK$1,192 thousand, impacted by intense market competition and the time needed for economic recovery - Revenue from insurance brokerage services decreased by **65.55%** from HK$3,460 thousand to **HK$1,192 thousand**, due to intense market competition and the time required for economic recovery[39](index=39&type=chunk) [Logistics Services and Money Lending Business](index=13&type=section&id=%E7%89%A9%E6%B5%81%E6%9C%8D%E5%8A%A1%E5%8F%8A%E6%94%BE%E5%80%BA%E4%B8%9A%E5%8A%A1) Logistics services revenue fell 99.94% to HK$2 thousand due to market competition and reduced demand, while the money lending business recorded no interest income - Revenue from logistics services decreased by **99.94%** from HK$3,199 thousand to **HK$2 thousand**, mainly due to intense market competition and reduced demand[64](index=64&type=chunk) - The money lending business recorded no interest income during the first quarter of 2023, and no new loans were granted[64](index=64&type=chunk) [Gross Profit and Gross Profit Margin](index=13&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Q1 2023 gross profit decreased by HK$140,571 thousand to HK$49,161 thousand, with the gross margin falling 11.75 percentage points to 37.65% - Gross profit for the first quarter of 2023 was **HK$49,161 thousand**, a decrease of HK$140,571 thousand from HK$189,732 thousand in the same period last year[65](index=65&type=chunk) - The gross profit margin decreased by **11.75 percentage points** from 49.40% to **37.65%**, mainly due to lower revenue from medical testing services and reduced sales of rapid antigen test kits[65](index=65&type=chunk) [Selling and Distribution Expenses](index=13&type=section&id=%E9%94%80%E5%94%AE%E5%8F%8A%E5%88%86%E9%94%80%E5%BC%80%E6%94%AF) Selling and distribution expenses decreased slightly by 4.74% to HK$3,720 thousand, remaining at a stable level - Selling and distribution expenses decreased slightly by **4.74%** to **HK$3,720 thousand**, maintaining a stable level[65](index=65&type=chunk) [Administrative Expenses](index=14&type=section&id=%E8%A1%8C%E6%94%BF%E5%BC%80%E6%94%AF) Administrative expenses decreased by 17.71% to HK$44,717 thousand, primarily due to lower R&D costs in the immunotherapy segment and reduced staff costs in medical testing - Administrative expenses decreased by **17.71%** to **HK$44,717 thousand**, mainly due to a **HK$7,188 thousand** reduction in R&D costs for oncologic immunocellular therapy services and a **HK$6,902 thousand** decrease in staff and recruitment costs for medical testing services[90](index=90&type=chunk) [Finance Costs](index=14&type=section&id=%E8%9E%8D%E8%B5%84%E6%88%90%E6%9C%AC) Finance costs increased to HK$1,353 thousand, mainly resulting from the convertible bonds issued in December 2022 - Finance costs increased to **HK$1,353 thousand**, primarily attributable to the convertible bonds issued in December 2022[90](index=90&type=chunk) [Loss for the Period](index=14&type=section&id=%E6%9C%AC%E6%9C%9F%E9%97%B4%E4%BA%8F%E6%8D%9F) The net loss attributable to owners was HK$15,375 thousand, a reversal from last year's net profit, driven by decreased demand for COVID-19 related services and products - The net loss attributable to owners of the Company was **HK$15,375 thousand**, a reversal from a net profit of HK$34,938 thousand in the same period last year[91](index=91&type=chunk) - The loss was mainly due to the decline in demand for nucleic acid testing services and rapid antigen test kits following the relaxation of COVID-19 quarantine regulations[91](index=91&type=chunk) Business Review and Future Prospects [Business Review](index=14&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%BE) This quarter's business review covers the renewal of a supply agreement with BGI, a purchase contract for BNCT equipment, and the grant of share options [Continuing Connected Transactions](index=14&type=section&id=%E6%8C%81%E7%BB%AD%E5%85%B3%E8%BF%9E%E4%BA%A4%E6%98%93) Sunrise Diagnostic Centre renewed its master supply agreement with BGI for equipment and reagents, with a 2023 annual cap of HK$120,000,000 - Sunrise Diagnostic Centre renewed its master supply agreement with BGI to purchase equipment, consumables, and reagents, with an annual cap of **HK$120,000,000** for 2023[67](index=67&type=chunk) [Purchase of Boron Neutron Capture Therapy Equipment](index=15&type=section&id=%E7%A1%BC%E4%B8%AD%E5%AD%90%E4%BF%98%E8%8E%B7%E6%B2%BB%E7%96%97%E8%AE%BE%E5%A4%87%E9%87%87%E8%B4%AD) The company contracted with Sumitomo to purchase Boron Neutron Capture Therapy components (approx HK$26,502 thousand) and related maintenance services (approx HK$21,919 thousand) - The company entered into a contract with Sumitomo to purchase Boron Neutron Capture Therapy components for an initial sales price of approximately **HK$26,502 thousand**[94](index=94&type=chunk) - Concurrently, it procured maintenance services for the BNCT equipment for a consideration of approximately **HK$21,919 thousand**[94](index=94&type=chunk) [Grant of Share Options](index=15&type=section&id=%E8%B4%AD%E8%82%A1%E6%9D%83%E6%8E%88%E4%BA%88) The company granted share options for 5,000,000 shares, representing approximately 0.52% of issued shares, to eligible participants with a three-year vesting period - The company granted share options for a total of **5,000,000 shares** to eligible participants, representing approximately **0.52%** of the total issued shares, with a three-year vesting period[94](index=94&type=chunk) [Future Prospects](index=15&type=section&id=%E6%9C%AA%E6%9D%A5%E5%B1%95%E6%9C%9B) The company plans to capitalize on post-pandemic demand for private healthcare, expand in the Greater Bay Area, and accelerate CAR-T trials and BNCT center construction [Expansion of Healthcare Services](index=15&type=section&id=%E5%8C%BB%E7%96%97%E4%BF%9D%E5%81%A5%E6%9C%8D%E5%8A%A1%E6%8B%93%E5%B1%95) Demand for health checks in Hong Kong is expected to grow, and the company is expanding into the Greater Bay Area and launching new tests like HPV DNA and colorectal cancer DNA - Demand for health checks and related medical services in Hong Kong is expected to continue growing, and the company is actively seeking collaborations to expand its business in the Greater Bay Area[71](index=71&type=chunk)[72](index=72&type=chunk) - New tests such as HPV DNA, colorectal cancer DNA, and cPassTM have been launched, and service agreements have been signed with operators of eight District Health Centres[72](index=72&type=chunk)[95](index=95&type=chunk) - The high-standard molecular biology laboratory now offers NGS-based cancer companion diagnostic tests and is preparing for FDA test product validation[97](index=97&type=chunk) [Progress in Oncologic Immunocellular Therapy](index=16&type=section&id=%E8%82%BF%E7%98%A4%E5%85%8D%E7%96%AB%E7%BB%86%E8%83%9E%E6%B2%BB%E7%96%97%E8%BF%9B%E5%B1%95) The Phase I clinical trial for the CAR-T drug LY007 is on schedule, with the first cohort of four patients having completed cell infusion - The Phase I clinical trial for its CAR-T drug, LY007 cell injection, is proceeding as planned, with the first cohort of four patients having completed cell infusion[73](index=73&type=chunk) - The company is confident that a sufficient number of patients will be enrolled in the trial by the end of 2023[73](index=73&type=chunk) [Construction of Boron Neutron Capture Therapy Center](index=16&type=section&id=%E7%A1%BC%E4%B8%AD%E5%AD%90%E4%BF%98%E8%8E%B7%E6%B2%BB%E7%96%97%E4%B8%AD%E5%BF%83%E5%BB%BA%E8%AE%BE) The BNCT center in the Boao Lecheng Pilot Zone has obtained its medical institution practice license, targeting completion and trial operation by late 2024 or early 2025 - Construction of the Boron Neutron Capture Therapy Center in the Boao Lecheng Pilot Zone is progressing, having obtained its medical institution practice license[74](index=74&type=chunk) - The target for completing construction, decoration, and equipment installation for trial operation is late 2024 or early 2025[74](index=74&type=chunk) - The company aims to become the first provider of BNCT cancer treatment services in the Greater China region[98](index=98&type=chunk) [Overall Strategy](index=17&type=section&id=%E6%95%B4%E4%BD%93%E6%88%98%E7%95%A5) The company will continue to enhance its diagnostic services, accelerate clinical trials and BNCT center construction, and develop innovative solutions using biomedical technology - The company will continue to offer tailored services to enrich its diagnostic and health check business[75](index=75&type=chunk) - It will strive to accelerate the construction of the trial and BNCT centers and develop innovative solutions by leveraging the latest advancements in biomedical research and technology[75](index=75&type=chunk) [Material Acquisitions and Disposals](index=17&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B4%AD%E5%8F%8A%E5%87%BA%E5%94%AE) During the first quarter of 2023, the Group did not conduct any other material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the first quarter of 2023, the Group did not conduct any other material acquisitions or disposals of subsidiaries, associates, or joint ventures[76](index=76&type=chunk)[100](index=100&type=chunk) Shareholder and Corporate Governance Information [Directors' and Chief Executive's Interests](index=17&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%91%98%E6%9D%83%E7%9B%8A) As of March 31, 2023, Mr Liu Xiaolin held a 54.97% interest through a controlled corporation, and several directors held a total of 11,760,000 share options **Directors' and Chief Executive's Long Positions in Shares (As at March 31, 2023):** | Director's Name | Capacity and Nature of Interest | Number of Shares | Approximate Percentage | | :--- | :--- | :--- | :--- | | Mr Liu Xiaolin | Interest in a controlled corporation | 529,500,546 | 54.97% | **Directors' Long Positions in Share Options Granted by the Company (As at March 31, 2023):** | Director's Name | Date of Grant | Exercise Price per Share (HK$) | Total Long Position in Underlying Shares | Approximate Percentage | | :--- | :--- | :--- | :--- | :--- | | Mr Liu Xiaolin | August 20, 2019 | 1.68 | 320,000 | 0.03% | | Mr He Xun | September 2, 2020 | 2.00 | 6,440,000 | 0.67% | | Ms Xu Haiyin | January 5, 2023 | 1.45 | 5,000,000 | 0.52% | | **Total** | | | **11,760,000** | **1.22%** | [Substantial Shareholders' Interests](index=19&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E4%B8%9C%E6%9D%83%E7%9B%8A) As of March 31, 2023, Genius Earn and its subsidiary held 54.97% of the company, while Guoyuan Securities and its affiliates held a combined 25.13% **Discloseable Interests of Substantial Shareholders in Shares and Underlying Shares (As at March 31, 2023):** | Shareholder Name | Capacity and Nature of Interest | Number of Ordinary Shares | Approximate Percentage | | :--- | :--- | :--- | :--- | | Genius Earn | Interest in a controlled corporation | 529,500,546 | 54.97% | | Genius Lead | Beneficial owner | 529,500,546 | 54.97% | | Guoyuan Securities Investment (Hong Kong) Limited | Beneficial owner | 54,137,931 | 5.62% | | Guoyuan International Holdings Limited | Interest in a controlled corporation | 242,041,736 | 25.13% | | Guoyuan Securities Company Limited | Interest in a controlled corporation | 242,041,736 | 25.13% | | Richlane Ventures Limited | Beneficial owner | 58,000,000 | 6.02% | | Mr Ko Chun Shun | Interest in a controlled corporation | 95,545,000 | 9.92% | [Share Option Scheme](index=20&type=section&id=%E8%B4%AD%E8%82%A1%E6%9D%83%E8%AE%A1%E5%88%92) The company's share option scheme, adopted in 2014, had 19,515,000 options outstanding as of March 31, 2023, with 5,000,000 granted during the quarter - The Share Option Scheme was adopted on May 29, 2014, to reward eligible participants for their contributions to the Group's success[114](index=114&type=chunk)[132](index=132&type=chunk) - On January 6, 2023, **5,000,000 share options** were granted to Ms Xu Haiyin at an exercise price of **HK$1.45**, with no performance targets or clawback mechanisms[94](index=94&type=chunk)[137](index=137&type=chunk) **Details of Share Option Movements (For the three months ended March 31, 2023):** | Category of Grantee | Balance at January 1, 2023 | Granted during the period | Balance at March 31, 2023 | | :--- | :--- | :--- | :--- | | Directors | 6,760,000 | 5,000,000 | 11,760,000 | | Participants of connected entities | 3,240,000 | – | 3,240,000 | | Consultants | 3,335,000 | – | 3,335,000 | | Employees | 1,180,000 | – | 1,180,000 | | **Total** | **14,515,000** | **5,000,000** | **19,515,000** | [Share Award Scheme](index=23&type=section&id=%E8%82%A1%E4%BB%BD%E5%A5%96%E5%8A%B1%E8%AE%A1%E5%88%92) The company's share award scheme, adopted in 2021, allows for the granting of up to 10% of issued shares, with a 1% cap per participant - The Share Award Scheme was adopted on August 18, 2021, to recognize the contributions of eligible participants to the Group's success[119](index=119&type=chunk)[139](index=139&type=chunk) - As of the date of this announcement, the total number of shares available for award is **96,323,115**, representing **10%** of the issued shares[120](index=120&type=chunk)[139](index=139&type=chunk) - The maximum entitlement for any one participant under the scheme shall not exceed **1%** of the total number of issued shares of the Company[121](index=121&type=chunk)[140](index=140&type=chunk) - The Share Award Scheme is valid for a period of 10 years and will expire on August 17, 2031[143](index=143&type=chunk) [Directors' Rights to Acquire Shares and Debentures](index=24&type=section&id=%E8%91%A3%E4%BA%8B%E6%94%B6%E8%B4%AD%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%80%BA%E6%9D%83%E8%AF%81%E7%9A%84%E6%9D%83%E5%88%A9) No arrangements were made to enable directors to acquire benefits by means of the acquisition of shares in or debentures of the company, other than the granted share options - Apart from the share options granted to three directors, no arrangements were entered into by the Company to enable directors to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate[143](index=143&type=chunk) [Pre-emptive Rights](index=24&type=section&id=%E4%BC%98%E5%85%88%E8%B4%AD%E4%B9%B0%E6%9D%83) The company's Bye-laws contain no provisions for pre-emptive rights, and there are no such restrictions under Bermuda law - There are no provisions for pre-emptive rights in the Company's Bye-laws or restrictions on such rights under Bermuda law[144](index=144&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=24&type=section&id=%E8%B4%AD%E4%B9%B0%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B5%8E%E5%9B%9E%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8) During the first quarter of 2023, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the first quarter of 2023, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[145](index=145&type=chunk) [Compliance with the Code of Conduct for Directors' Securities Transactions](index=24&type=section&id=%E9%81%B5%E5%AE%88%E8%91%A3%E4%BA%8B%E8%BF%9B%E8%A1%8C%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E8%A1%8C%E4%B8%BA%E5%AE%88%E5%88%99) The company confirmed that all directors have complied with the required standard of dealings and the code of conduct for directors' securities transactions during Q1 2023 - All directors have complied with the required standard of dealings and the code of conduct for directors' securities transactions throughout the first quarter of 2023[145](index=145&type=chunk) [Corporate Governance Code](index=25&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A7%84%E5%AE%88%E5%88%99) During the first quarter of 2023, the company has complied with the code provisions of the Corporate Governance Code as set out in the GEM Listing Rules - During the first quarter of 2023, the Company has complied with the code provisions of the Corporate Governance Code set out in Appendix 15 to the GEM Listing Rules[146](index=146&type=chunk) [Competing Interests and Conflicts of Interest](index=25&type=section&id=%E7%AB%9E%E4%BA%89%E6%9D%83%E7%9B%8A%E5%8F%8A%E5%88%A9%E7%9B%8A%E5%86%B2%E7%AA%81) During Q1 2023, no director or controlling shareholder had any interest in a business that competes with the Group, nor were there any conflicts of interest - During the first quarter of 2023, no director, controlling shareholder, or their respective close associates had any interest in any business that competes or may compete with the Group's business, nor were there any conflicts of interest[146](index=146&type=chunk) [Audit Committee](index=25&type=section&id=%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A) The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's unaudited first-quarter results and discussed internal control matters - The Audit Committee, consisting of three independent non-executive directors, has reviewed the Group's unaudited condensed consolidated first-quarter results[147](index=147&type=chunk)[150](index=150&type=chunk) [Sufficiency of Public Float](index=25&type=section&id=%E5%85%AC%E4%BC%97%E6%8C%81%E8%82%A1%E9%87%8F%E4%B9%8B%E5%85%85%E8%B6%B3%E6%80%A7) As of the date of this announcement, the company has maintained the public float as specified under the GEM Listing Rules - As of the date of this announcement, the Company has maintained the public float as specified under the GEM Listing Rules[151](index=151&type=chunk) Conclusion [Conclusion](index=26&type=section&id=%E7%BB%93%E8%AF%AD) The Board of Directors thanks all shareholders for their support and has provided a list of its members and announcement publication channels - The Board of Directors thanks all shareholders for their support of the Company[152](index=152&type=chunk) - The Board of Directors comprises four executive directors and three independent non-executive directors[103](index=103&type=chunk) - This announcement will be published on the websites of The Stock Exchange of Hong Kong Limited and the Company[103](index=103&type=chunk)

Financial Performance - The total revenue for the year ended December 31, 2022, was approximately HKD 1,851,532,000, representing a significant increase of over 197% compared to the previous year[8]. - Gross profit for the same period was approximately HKD 1,100,957,000, reflecting a year-on-year growth of 208%, with a gross margin of 59.46% (up from 57.40% in the previous year)[8]. - The company reported record revenue and profit during the fiscal year due to high demand for nucleic acid testing services amid the COVID-19 pandemic[48]. - The net profit attributable to the company's owners increased significantly to approximately HKD 258,087,000 in 2022 from HKD 19,385,000 in 2021, driven by high demand for COVID-19 testing services[175]. - Revenue from the medical laboratory testing and health check services increased from approximately HKD 607,776,000 in 2021 to approximately HKD 1,619,568,000 in 2022, representing a 166% increase[163]. COVID-19 Testing Services - The company completed over 10,000,000 COVID-19 nucleic acid tests during the year, an increase of over 183% compared to 3,600,000 tests completed in the previous year[13]. - The demand for medical laboratory testing services and health check services, including COVID-19 nucleic acid testing, remained high due to ongoing COVID-19 outbreaks[155]. - The company became one of the designated service providers for COVID-19 rapid nucleic acid testing at Shenzhen Bay Port and Hong Kong-Zhuhai-Macao Bridge Hong Kong Port for travelers leaving Hong Kong[155]. - The company provided over 15,000,000 COVID-19 nucleic acid tests during the pandemic, supporting the Hong Kong government's community testing initiatives[160]. Business Expansion and New Services - The company launched new medical laboratory testing and health check services, including pre-vaccination health checks and cancer screening tests, to enhance competitiveness in the post-pandemic era[14]. - The company has established six service agreements with regional health center operators to provide laboratory testing services for various diseases, including diabetes and colorectal cancer[15]. - A high-standard molecular biology laboratory has been established in collaboration with Pillar Biosciences, Inc. to enhance precision diagnostic testing services[15]. - The company aims to achieve further breakthroughs in business performance through the commercialization of a range of medical laboratory testing and healthcare services in the coming years[2]. - The company is focusing on restoring non-COVID-19 medical diagnostic and treatment services as the pandemic subsides[48]. Environmental Commitment - The company is committed to reducing its environmental footprint through sustainable practices in R&D, medical testing, and precision cancer diagnostics[73]. - The total greenhouse gas emissions related to the company's operations during the reporting period were estimated at 11,040 tons of CO2 equivalent, primarily due to increased business activities and higher electricity consumption[87]. - The company aims to reduce greenhouse gas emissions as part of its long-term environmental goals[126]. - The company has established an ESG committee to monitor progress and develop strategies to achieve ESG goals, recognizing the importance of ESG considerations for long-term success[73]. - The company has set policies to ensure compliance with all applicable environmental laws and regulations, fostering an environmentally conscious culture among employees[74]. Research and Development - Significant progress has been made in the research and development of immune cell therapy, with clinical trials for investigational new drugs currently underway[48]. - The company received approval for its investigational new drug (IND) application for LY007, a CAR-T therapy product, marking a significant milestone in its oncology treatment offerings[166]. - The company is seeking collaborations with contract research organizations and local hospitals for next-generation sequencing (NGS) cancer diagnostic tests[161]. Capital and Financing - The company issued convertible bonds totaling USD 10,000,000, equivalent to approximately HKD 77,800,000, with a conversion price of HKD 1.45 per share[125]. - The net proceeds from the convertible bonds are allocated as follows: HKD 23,340,000 for investment in boron neutron capture therapy projects and HKD 15,124,000 for R&D costs and general operating funds[125]. - The company entered a five-year exclusive distribution agreement for NMN products, allowing distribution rights in regions including Hong Kong, Macau, and several Southeast Asian countries[39]. Waste Management and Compliance - The group has established strict policies for the management of medical waste to ensure proper disposal[90]. - The company has implemented strict health and safety measures during the COVID-19 pandemic to ensure employee safety and minimize virus transmission[180]. - The company aims to maintain a zero-violation record in hazardous waste management, reflecting its commitment to compliance and safety standards[183]. - The company has not recorded any violations of environmental laws during the reporting period[128]. Employee and Operational Metrics - The total number of full-time employees was 260, with an overall turnover rate of 32% during the reporting period[140]. - The turnover rate for part-time employees was 18%, with 17 part-time employees reported[141]. - The employee turnover rate for males was 30% and for females was 31%[141]. - The turnover rate for employees under 30 years old was 35%, while it was 27% for those aged 30 to 50, and 31% for those over 50[141].