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

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

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

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

Financial Performance - Total revenue for the first quarter of 2020 was HKD 12,704,000, a decrease of 10.4% from HKD 14,181,000 in the same period of 2019[5] - Gross profit for the first quarter of 2020 was HKD 2,997,000, down 34.5% from HKD 4,579,000 in the first quarter of 2019[5] - Operating loss for the first quarter of 2020 was HKD 24,570,000, compared to an operating loss of HKD 14,596,000 in the same period of 2019, representing a 68.3% increase in losses[5] - Loss before tax for the first quarter of 2020 was HKD 25,026,000, up from HKD 14,969,000 in the first quarter of 2019, indicating a 67.1% increase in losses[5] - The company reported a total comprehensive loss of HKD 24,980,000 for the first quarter of 2020, compared to HKD 15,350,000 in the same period of 2019, reflecting a 62.5% increase in comprehensive losses[7] - Basic and diluted loss per share for the first quarter of 2020 was HKD 0.023, compared to HKD 0.016 in the first quarter of 2019, representing a 43.8% increase in loss per share[7] Revenue Breakdown - Revenue for the three months ended March 31, 2020, was HKD 12,704,000, a decrease of 10.5% from HKD 14,181,000 in the same period of 2019[18] - Revenue from the manufacturing and sales of healthcare-related and pharmaceutical products was HKD 407,000, down 14.6% from HKD 477,000 in 2019[18] - Revenue from medical laboratory testing and health check services was HKD 8,885,000, a decline of 33.5% compared to HKD 13,257,000 in 2019[18] Expenses and Costs - Administrative expenses increased significantly to HKD 24,793,000 in the first quarter of 2020, compared to HKD 15,915,000 in the same period of 2019, marking a 55.8% rise[5] - Total financing costs for the period were HKD 456,000, significantly higher than HKD 74,000 in the same period of 2019[22] - Interest income for the three months ended March 31, 2020, was HKD 8,000, down 52.9% from HKD 17,000 in 2019[20] - Interest expenses for Q1 2020 were approximately HKD 456,000, an increase from HKD 74,000 in Q1 2019, attributed to higher levels of short-term borrowings for operational funding[47] - Sales and distribution expenses for Q1 2020 were approximately HKD 2,917,000, a decrease of about HKD 27,000 or 0.92% compared to Q1 2019[45] Foreign Exchange and Other Income - The foreign exchange loss from overseas operations was HKD 272,000 in the first quarter of 2020, compared to a gain of HKD 58,000 in the same period of 2019[7] - The group reported a net loss of HKD 9,000 from foreign exchange, compared to a loss of HKD 31,000 in 2019[20] - The company recorded other income of HKD 143,000 in the first quarter of 2020, compared to a loss of HKD 316,000 in the same period of 2019[5] Strategic Focus and Future Plans - The company aims to enhance its biotechnology platform and expand its market presence in the future[1] - The company continues to focus on expanding its healthcare services and product offerings in China and Hong Kong[13] - The company is focusing on the development and registration of immune cell products, aiming to achieve significant R&D milestones amid a challenging economic outlook[51] - CAR-T technology is projected to experience a compound annual growth rate of 46.1% from 2019 to 2028, indicating strong market potential for the company's tumor treatment products[51] - The company has entered into distribution agreements for COVID-19 testing kits to capture market demand shifted towards COVID-19 testing[40] Corporate Governance and Compliance - The group has maintained its compliance with the GEM listing rules and applicable disclosure requirements[14] - The board has established an audit committee to oversee financial reporting and internal controls, consisting of three independent non-executive directors[83] - The board emphasizes the importance of corporate governance and compliance with legal and regulatory requirements[79] - The company confirmed that all directors complied with the trading standards during the first quarter of 2020[78] - The company has adopted a set of trading standards for directors in accordance with GEM listing rules[78] Shareholding and Stock Options - As of March 31, 2020, Mr. Liu Xiaolin holds approximately 67.83% of the company's shares, indicating strong insider ownership[53] - Genius Earn holds 529,500,546 shares, representing 54.60% of the total shares[62] - Genius Lead, fully owned by Genius Earn, also holds 529,500,546 shares, equating to 54.60%[64] - Yao Xin Venture Limited holds 128,300,000 shares, which is 13.23% of the total shares[62] - The total number of stock options granted amounts to 20,020,000, representing 2.06% of the total issued shares[60] - The company has a stock option plan approved by shareholders on May 29, 2014, to reward eligible participants for their contributions[66] Miscellaneous - The company did not recommend any dividend for the three months ended March 31, 2020, consistent with no dividend declared for the same period in 2019[30] - The group did not adopt any new accounting standards that would have a significant financial impact on the unaudited consolidated results[15] - No significant acquisitions or disposals of subsidiaries or associates occurred during Q1 2020[53] - The company did not purchase, sell, or redeem any listed securities during the first quarter of 2020[77] - There were no arrangements made for directors to acquire shares or debentures of the company during the first quarter of 2020, except for stock options granted in 2018 and 2019[75] - The company has not disclosed any new product developments or market expansion strategies in the provided documents[63] - There are no reported mergers or acquisitions in the recent financial disclosures[63]

ANNUAL REPORT 2019 年 報 CHINA BIOTECH SERVICES HOLDINGS LIMITED 中國生物科技服務控股有限公司 | --- | --- | --- | --- | --- | --- | |-------|-------------------------------------|----------|-------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------|-------| | | | | | | | | | | | | | | | | | | | CHINA BIOTECH SERVICES HOLDINGS LIMITED CHINA BIOTECH SERVICES HOLDINGS LIMITED | | | | ( ( 股份代號 : 8037 股份代號 : ...

Financial Performance - Total revenue for Q3 2019 was HKD 14,151,000, a decrease of 19.3% from HKD 17,590,000 in Q3 2018[8] - Gross profit for Q3 2019 was HKD 5,307,000, down 13.1% from HKD 6,109,000 in Q3 2018[8] - Operating loss for Q3 2019 was HKD 23,335,000, compared to an operating loss of HKD 18,573,000 in Q3 2018, representing a 25.0% increase in losses[8] - Net loss for Q3 2019 was HKD 23,976,000, compared to a net loss of HKD 19,521,000 in Q3 2018, indicating a 22.8% increase in losses[8] - Total revenue for the nine months ended September 30, 2019, was HKD 42,721,000, down 16.6% from HKD 51,361,000 in the same period of 2018[8] - Gross profit for the nine months ended September 30, 2019, was HKD 15,689,000, a decrease of 21.2% from HKD 19,929,000 in the same period of 2018[8] - Operating loss for the nine months ended September 30, 2019, was HKD 59,135,000, compared to an operating loss of HKD 45,132,000 in the same period of 2018, reflecting a 31.1% increase in losses[8] - The company reported a total comprehensive loss of HKD 24,485,000 for Q3 2019, compared to HKD 19,233,000 in Q3 2018, marking a 27.3% increase in comprehensive losses[14] - Basic and diluted loss per share for Q3 2019 was HKD 0.023, compared to HKD 0.020 in Q3 2018[14] Administrative and Operating Expenses - The company experienced a significant increase in administrative expenses, totaling HKD 24,591,000 in Q3 2019, compared to HKD 22,250,000 in Q3 2018, representing a 10.5% increase[8] - Administrative expenses for Q3 2019 were approximately HKD 64,456,000, an increase of about HKD 9,334,000 or 16.93% compared to Q3 2018[56] - Interest expenses for Q3 2019 were approximately HKD 772,000, a decrease from HKD 2,571,000 in Q3 2018[58] - The group recorded a loss of approximately HKD 60,294,000 in Q3 2019, compared to a loss of HKD 47,866,000 in Q3 2018, primarily due to decreased revenue and increased administrative expenses[59] Revenue Breakdown - Revenue from tumor immunotherapy services was HKD 77,000 for the three months ended September 30, 2019, with no prior year comparison available[30] - Revenue from the manufacturing and sale of health-related and pharmaceutical products was HKD 398,000, down 85.7% from HKD 2,791,000 in the same period of 2018[30] - The segment for manufacturing and sales of health-related and pharmaceutical products saw a significant revenue drop from approximately HKD 7,259,000 in 2018 to HKD 1,192,000 in 2019, a decrease of HKD 6,067,000[49] Equity and Capital Structure - The company's total equity as of September 30, 2019, was HKD 251,308,000, down from HKD 254,674,000 at the beginning of the year[18] - The company has issued shares amounting to HKD 133,560,000 during the period, contributing to its capital structure[18] Strategic Focus and Future Plans - The company is focused on expanding its services in tumor immunotherapy and health management in China[21] - The company plans to enhance its research and development efforts in health-related and pharmaceutical products[21] - The company aims to improve its medical laboratory testing services in Hong Kong[21] - The company is exploring potential mergers and acquisitions to strengthen its market position[21] - The company is optimistic about the favorable policies for biotech innovation in China, which will create good development opportunities for its future biotech platform[82] Acquisitions and Collaborations - The company completed the acquisition of 67% equity interest in Shanghai Longyao Biotechnology Co., which contributed approximately HKD 138,000 in revenue from tumor immune cell therapy services for the three months ended September 30, 2019[48] - The acquisition of approximately 67% equity in Shanghai Longyao was completed on March 29, 2019, with an investment of RMB 40,000,000 (approximately HKD 46,400,000)[60] - The maximum consideration for the acquisition was approximately RMB 225,494,776 (approximately HKD 261,573,940), with various payments made in cash and through share issuance[64] - The acquisition of 51% of Fushi's issued shares was agreed upon for a consideration of HKD 12,240,000, with HKD 3,060,000 paid in cash and HKD 3,060,000 through share issuance[68] - The acquisition of Fushi is viewed as an opportunity to extend products and services into the insurance industry, enhancing competitiveness and expanding the customer base[69] - The company has entered into a collaboration with Pillar to establish a joint venture focused on cancer patient gene testing in Hong Kong, aiming to enhance cancer detection capabilities[80] Employee and Shareholder Information - The total number of full-time employees as of September 30, 2019, was 136, a decrease from 171 employees as of September 30, 2018[85] - The total employee cost for the third quarter of 2019 was approximately HKD 34,895,000, compared to HKD 33,839,000 in the same period of 2018, reflecting an increase of about 3.12%[85] - The group made contributions of approximately HKD 1,524,000 to the retirement benefit plans during the third quarter of 2019, up from HKD 1,330,000 in the same period of 2018, representing an increase of about 14.56%[86] - As of September 30, 2019, the total number of shares held by the directors and senior management amounted to 667,800,546 shares, which is approximately 68.96% of the total issued shares of 968,276,150[88] - Liu Xiaolin held 529,500,546 shares, representing 54.68% of the company's shares[88] - The company has granted options to eligible participants for a total of up to 25,420,000 shares at a par value of HKD 0.10 each[77] Corporate Governance and Compliance - The company is committed to adhering to the Hong Kong Financial Reporting Standards in its financial reporting[22] - The company has adopted new accounting standards that may impact its financial performance moving forward[23] - The audit committee, consisting of three independent non-executive directors, reviewed the financial reporting procedures and internal controls during the third quarter[127] - The company confirmed that all directors complied with the trading standards and code of conduct during the third quarter[122] - The company has implemented corporate governance measures to ensure transparency and accountability to shareholders[125] Share Repurchase and Options - The company repurchased a total of 380,000 shares during the third quarter of 2019, with a total cost of HKD 508,800[121] - The highest repurchase price per share was HKD 1.38, while the lowest was HKD 1.30[121] - The board believes that the share repurchase reflects confidence in the company's long-term business prospects and will ultimately benefit shareholders[121] - The company reported a total of 4,500,000 share options granted to employees at a price of HKD 1.68 during the third quarter of 2019[112]

Financial Performance - Total revenue for the three months ended June 30, 2019, was HKD 14,389,000, a decrease of 13.4% compared to HKD 16,612,000 for the same period in 2018[4] - Gross profit for the six months ended June 30, 2019, was HKD 10,382,000, down 24.3% from HKD 13,820,000 in the prior year[4] - Operating loss for the three months ended June 30, 2019, was HKD 21,204,000, compared to a loss of HKD 13,942,000 in the same period of 2018, representing a 52.5% increase in losses[4] - The company reported a net loss of HKD 21,360,000 for the three months ended June 30, 2019, compared to a loss of HKD 14,585,000 in the same period of 2018, indicating a 46.1% increase in net losses[5] - Total revenue for the six months ended June 30, 2019, was HKD 28,570,000, a decrease of 15.4% compared to HKD 33,771,000 for the same period in 2018[23] - The company reported a pre-tax loss of HKD 36,645,000 for the six months ended June 30, 2019, compared to a loss of HKD 33,771,000 in the previous year[26] - The company reported a basic and diluted loss per share of HKD 0.020 for the three months ended June 30, 2019, compared to HKD 0.016 in the same period of 2018[5] - The company reported a basic and diluted loss per share of HKD 0.036 for the six months ended June 30, 2019, compared to HKD 0.031 for the same period in 2018, indicating a 16% increase in loss per share[45] Assets and Liabilities - Total assets as of June 30, 2019, amounted to HKD 465,930,000, an increase from HKD 337,761,000 in the previous year[8] - The total equity and liabilities amounted to HKD 465,930 thousand as of June 30, 2019, compared to HKD 337,761 thousand at the end of 2018, indicating an increase of approximately 38%[10] - The total current liabilities increased to HKD 31,126 thousand as of June 30, 2019, up from HKD 15,837 thousand at the end of 2018, representing a growth of approximately 96.5%[10] - Total liabilities of the group were approximately HKD 87,065,000, up from HKD 18,846,000 as of December 31, 2018, resulting in a debt-to-asset ratio of approximately 18.69%[104] Cash Flow - Cash and cash equivalents decreased to HKD 72,940,000 from HKD 154,479,000, reflecting a decline of 52.8%[8] - The company reported a net cash outflow from operating activities of HKD (17,078) thousand for the six months ended June 30, 2019, compared to a net inflow of HKD 2,123 thousand in the same period of 2018[15] - The company recorded a net cash outflow from investing activities of HKD (72,258) thousand for the six months ended June 30, 2019, compared to HKD (23,820) thousand in the same period of 2018[15] - The company’s financing activities generated a net cash inflow of HKD 8,744 thousand for the six months ended June 30, 2019, compared to HKD 2,139 thousand in the same period of 2018[15] Expenses - The company incurred finance costs of HKD 210,000 for the three months ended June 30, 2019, down from HKD 866,000 in the same period of 2018, a decrease of 75.8%[4] - The company’s administrative expenses rose to HKD 23,950,000 for the three months ended June 30, 2019, compared to HKD 16,838,000 in the same period of 2018, an increase of 42.0%[4] - The company incurred financing costs of HKD 1,687,000 during the reporting period[29] - The company’s financing costs for the six months ended June 30, 2019, totaled HKD 284,000, a decrease from HKD 1,687,000 in the same period of 2018[35] Revenue Segments - Revenue from medical laboratory testing and health check services was HKD 26,897,000, accounting for 94.1% of total revenue[27] - The immunotherapy segment generated revenue of HKD 61,000, which is a new reporting segment following the acquisition of Shanghai Longyao Biotechnology Co., Ltd.[26] - The pharmaceutical products segment reported revenue of HKD 794,000, down from HKD 4,468,000 in the same period last year, representing an 82.2% decrease[27] - The medical and health-related services segment reported a loss of HKD 3,743,000 for the six months ended June 30, 2019[27] Acquisitions and Investments - The company acquired a subsidiary for HKD 35,413 thousand during the reporting period[12] - The company acquired approximately 67% equity in Shanghai Longyao, with a total consideration of HKD 170,645,000, including cash payment of HKD 90,280,000[51][55] - Shanghai Longyao contributed revenue of approximately HKD 61,000,000 and a net loss of HKD 3,494,000 from the acquisition date to June 30, 2019[57] - The company entered into a non-binding memorandum of understanding to acquire a 70% stake in China Precision Medical Technology Holdings Limited for RMB 70,000,000 (approximately HKD 77,700,000)[75] Share Capital and Options - The issued share capital as of June 30, 2019, was HKD 96,865,615, consisting of 968,656,150 shares, compared to HKD 93,534,675 and 935,346,750 shares as of December 31, 2018[105] - The company plans to issue a total of 29,100,000 new shares at an issue price of HKD 2.00 to certain individuals upon achieving specific performance targets[58] - The company has a stock option plan effective from May 29, 2014, which will remain valid for 10 years unless canceled or amended[59] - The maximum number of shares that can be issued under the stock option plan is capped at 10% of the total issued shares at any time[59] Corporate Governance - The board emphasizes the importance of corporate governance and has implemented measures to ensure compliance with laws and regulations, maintaining high standards of transparency and accountability[151] - The audit committee, composed of three independent non-executive directors, has reviewed the financial reporting procedures and internal controls during the mid-2019 period[154] - The company has maintained the required public float as specified by GEM Listing Rules as of the report date[155] - There were no conflicts of interest reported between the directors or controlling shareholders and the company's business during the mid-2019 period[152]

Financial Performance - Revenue for the first quarter of 2019 was HKD 14,181,000, a decrease of 17.3% compared to HKD 17,159,000 in the same period of 2018[7] - Gross profit for the first quarter was HKD 4,579,000, down 35.5% from HKD 7,094,000 year-on-year[7] - Operating loss increased to HKD 14,596,000, compared to HKD 12,617,000 in the first quarter of 2018, reflecting a 15.7% increase in losses[7] - Loss before tax for the period was HKD 14,969,000, compared to HKD 13,754,000 in the previous year, indicating a 8.8% increase in losses[7] - The total comprehensive loss for the period was HKD 15,350,000, compared to HKD 13,690,000 in the same quarter of 2018, representing a 12.1% increase[9] - Basic and diluted loss per share for the first quarter was HKD 0.016, slightly up from HKD 0.015 in the previous year[9] Revenue Breakdown - Revenue from the manufacturing and sales of healthcare-related and pharmaceutical products was HKD 477,000, down 81.5% from HKD 2,584,000 in the previous year[21] - Revenue from medical laboratory testing and health check services was HKD 13,257,000, a decrease of 7.1% from HKD 14,279,000 in the prior year[21] Expenses and Costs - Selling and distribution expenses decreased to HKD 2,944,000 from HKD 3,712,000, a reduction of 20.7% year-on-year[7] - Administrative expenses slightly decreased to HKD 15,915,000 from HKD 16,034,000, showing a marginal decline of 0.7%[7] - Financing costs significantly decreased to HKD 74,000 from HKD 821,000, a reduction of 91% year-on-year[7] Other Income and Gains - Other income and gains for the quarter were negative at HKD 316,000, compared to a positive HKD 35,000 in the same period last year[7] - The group reported a net loss of HKD 316,000 for other income and gains/losses, compared to a gain of HKD 35,000 in the previous year[21] Corporate Developments - The company entered a non-binding memorandum of understanding on April 12, 2019, regarding a potential acquisition of 70% equity in China Precision Medicine Technology Holdings Limited[30] - The company acquired approximately 67% equity in Shanghai Longyao, with an investment of RMB 40,000,000 (approximately HKD 46,400,000) and a total acquisition cost of about RMB 225,494,776 (approximately HKD 261,573,940)[44] - The company completed the acquisition of Pillar Biosciences, Inc. shares for USD 2,499,999.53 (approximately HKD 19,600,000), representing about 2.90% of Pillar's total issued share capital[51] Shareholder Information - As of March 31, 2019, the company had a total of 968,656,150 shares issued, with Liu Xiaolin holding 54.66% and an additional 13.25% through concerted action[60] - Liu Xiaolin has a beneficial ownership of 529,500,546 shares, representing 54.66% of the company[60] - Genius Earn holds 529,500,546 shares, representing 54.66% of the total issued shares[70] - Yao Xin Venture Limited holds 128,300,000 shares, which is 13.25% of the total issued shares[70] Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the financial reporting procedures and internal controls during the first quarter of 2019[95] - The company confirmed that all directors adhered to the trading standards and conduct codes during the first quarter of 2019[91] - The company has implemented corporate governance measures to ensure transparency and accountability to shareholders[92] Market Opportunities - The company plans to leverage opportunities in the Greater Bay Area, which is a priority development area for the biopharmaceutical industry, to enhance its main business operations[54] - The company aims to expand its health check-up services into the mainland China market in 2019, utilizing its established reputation and management experience from Hong Kong[54] - The establishment of the Sci-Tech Innovation Board in China provides favorable conditions for biotech companies to raise funds without profitability, which is a significant advantage for pharmaceutical R&D firms[57]

Business Challenges and Strategy - The company faced various business challenges in 2018, including rising raw material costs and weak consumer demand in China and Hong Kong, impacting profitability [10]. - The company is repositioning itself as a technology group in the biomedical field, focusing on the transformation and application of high-tech medical technology in mainland China and the Greater Bay Area [10]. - The new business layout primarily includes two major areas: precision diagnosis and precision treatment [10]. Financial Performance - The company recorded a revenue of approximately HKD 70,304,000 for the year ended December 31, 2018, a decrease of about 33.13% compared to HKD 105,135,000 for the year ended December 31, 2017 [18]. - The revenue from the manufacturing and sales of healthcare-related and pharmaceutical products significantly decreased from approximately HKD 43,720,000 in 2017 to about HKD 9,732,000 in 2018, primarily due to the absence of pharmaceutical intermediates trade overseas [19]. - The medical laboratory testing services and health check services segment's revenue slightly decreased from approximately HKD 61,379,000 in 2017 to about HKD 58,968,000 in 2018, attributed to intense competition in the market [20]. - The group recorded a net loss of approximately HKD 69,433,000 for the year 2018, an improvement from a net loss of HKD 76,530,000 in 2017 [30]. - Gross profit decreased slightly from approximately HKD 30,202,000 in 2017 to about HKD 28,084,000 in 2018, while the gross profit margin increased significantly by 11.22 percentage points to approximately 39.95% [25]. - Administrative expenses rose sharply by approximately HKD 27,044,000 or 52.06% to about HKD 78,988,000 in 2018, primarily due to share-based payment expenses and increased employee costs [27]. - Financing costs increased to approximately HKD 3,472,000 in 2018 from HKD 2,743,000 in 2017, attributed to higher average borrowing levels [28]. Investments and Acquisitions - The company signed a strategic cooperation agreement with Nanjing Medical University to explore extensive collaboration in precision testing and treatment [15]. - The company acquired a controlling stake in Shanghai Longyao Biotechnology Co., with an investment of RMB 40,000,000 and a total acquisition cost of approximately RMB 225,494,776 [14]. - The company plans to expand its molecular diagnostic services, including cancer gene testing and early screening [14]. - The company completed a placement agreement to issue 79,500,000 new shares at a price of HKD 1.68 per share, raising approximately HKD 133,560,000 [14]. - The company aims to establish a joint venture in Hong Kong with Pillar Biosciences, focusing on cancer detection and early screening [15]. - The company has invested approximately HKD 19,638,000 in Pillar Biosciences, Inc. [42]. - The company has allocated approximately HKD 43,755,000 for the acquisition of Shanghai Longyao and approximately HKD 8,667,000 for potential investments and general working capital [42]. Market Outlook and Growth - The company provided a positive outlook for 2019, projecting a revenue growth of 20% based on new product launches and market expansion strategies [88]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years [88]. - The company aims to launch three new products in 2019, which are anticipated to contribute an additional 5% to overall revenue [88]. Corporate Governance - The company has maintained high standards of corporate governance, ensuring compliance with laws and regulations [82]. - The board consists of four executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2018 [85]. - The company has adopted a set of trading standards for directors' securities transactions in compliance with GEM Listing Rules [83]. - The company has confirmed that all directors complied with the trading standards during the 2018 fiscal year [83]. - The board is responsible for formulating the overall strategic development of the group and overseeing management and operations [87]. Environmental and Social Responsibility - The company has committed to environmental protection and corporate governance, aligning with ESG guidelines as per the GEM listing rules [145]. - The total carbon footprint of the company in 2018 was reported as 431.4 tons of CO2 equivalent, with Scope 1 emissions at 27.1 tons and Scope 2 emissions at 404.27 tons [163]. - The company achieved a 35% reduction in water usage, a 41% reduction in wastewater, and a 12% reduction in electricity consumption compared to the previous year [180]. - The company has established a waste management policy to ensure proper handling of medical waste, complying with local regulations [168]. Employee Management and Training - The total employee cost for the year 2018 was approximately HKD 52,323,000, an increase from HKD 38,318,000 in 2017 [65]. - The company employed a total of 125 full-time employees as of December 31, 2018, down from 170 in 2017 [65]. - The company provided a total of 244 hours of training for 18 employees in China, with 40.9% of employees receiving training, averaging 13.6 hours per employee [192]. - The company emphasizes continuous learning and development, providing a supportive environment for employee growth and retention [192].