Financial Performance - The company reported a significant increase in revenue, achieving a total of $XX million, representing a YY% growth compared to the previous year[12]. - The Group recorded a revenue of approximately HK$282.9 million for the year ended 31 December 2021, representing an increase of 55% from HK$182.1 million in 2020[46]. - Gross profit increased by 62% to approximately HK$67.7 million from HK$41.8 million in the previous year, with a gross profit margin rising from 23% to 24%[46]. - The Group achieved a profit of approximately HK$13.3 million for the year ended 31 December 2021, a turnaround from a loss of HK$438.8 million in 2020[46]. - The increase in revenue was primarily due to the growth in the healthcare products and services segment, attributed to the expansion of the sales network in the PRC[47]. - The healthcare products and services segment recorded a growth of 55% in revenue for the year ended 31 December 2021, driven by the establishment of a selling membership in the PRC[39]. User Engagement and Growth - User data showed an increase in active users, reaching ZZ million, which is a growth of AA% year-over-year[12]. - The company reported a significant increase in user data, with a growth rate of 25% year-over-year in active users[77]. - The company is focusing on enhancing customer engagement through digital platforms, aiming for a HH% increase in user interaction[12]. Future Outlook and Strategic Initiatives - The company has outlined its future outlook, projecting a revenue growth of BB% for the upcoming fiscal year[12]. - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[78]. - New product development initiatives are underway, with plans to launch CC new products in the next quarter[12]. - A new product line is expected to launch in Q3 2024, projected to contribute an additional $2 million in revenue[82]. - The company is expanding its market presence, targeting DD new regions for growth in the next year[12]. - Market expansion efforts include entering two new regions, aiming for a 10% market share within the first year of operation[80]. - Strategic acquisitions are being considered to enhance the company's capabilities and market share[12]. - The company is considering strategic acquisitions to enhance its service offerings, with a target of identifying at least three potential candidates by Q2 2024[81]. Operational Efficiency and Cost Management - Operational efficiency improvements are expected to reduce costs by FF% in the next fiscal year[12]. - The Company aims to improve profitability and cash flows by closely monitoring administrative expenses and operating costs[25]. - The management team emphasized a commitment to sustainability, aiming to reduce operational costs by 20% through eco-friendly practices[84]. Corporate Governance - The company has complied with all code provisions of the Corporate Governance Code throughout the Reporting Period, except for code provision C.2.1[89]. - The roles of chairman and chief executive officer are held by the same individual, Mr. Wang Chuang, which deviates from code provision C.2.1 of the Corporate Governance Code[90]. - The Board consists of one executive director, one non-executive director, and three independent non-executive directors, ensuring a balanced power structure[90]. - The Company has adopted a code of conduct for Directors' securities transactions as required by the GEM Listing Rules, with all directors confirming compliance during the Reporting Period[95]. - The Board consists of five Directors, including one executive Director, one non-executive Director, and three independent non-executive Directors as of December 31, 2021[103]. - The Board focuses on overall strategies and policies, particularly emphasizing the growth and financial performance of the Group[113]. - The principal functions of the Board include establishing strategic direction, approving annual budgets, and overseeing internal controls and compliance[114]. - The Company has adopted a Board Diversity Policy to achieve diversity in the boardroom, considering factors such as gender, age, and professional experience[119]. Audit and Risk Management - The Audit Committee comprises at least three members who must be non-executive directors, with a majority being independent non-executive directors[164]. - The Audit Committee has been established since July 4, 2001, with its terms of reference revised on March 16, 2016, in compliance with the CG Code[164]. - During the Reporting Period, all members of the Audit Committee are independent non-executive Directors[166]. - The Audit Committee is scheduled to meet at least 4 times a year to review financial reporting and internal controls[170]. - The Audit Committee reviewed the Group's financial results for the three months ended March 31, 2021, six months ended June 30, 2021, nine months ended September 30, 2021, and the audited consolidated financial statements for the year ended December 31, 2021[172]. - The Audit Committee has the authority to investigate any matters under its duties and can obtain independent professional advice[170]. Human Resources and Workforce Management - Total employee remuneration for the year was approximately HK$16.4 million, a decrease from HK$115.8 million in 2020, reflecting a reduction in workforce from 172 employees to 21[66]. - The basic salary for each executive Director is recommended by the Remuneration Committee, considering individual performance and market salary rates[195][200]. - Bonuses for executive Directors and senior management are based on profit levels achieved against targets and individual performance assessments during the Reporting Period[197]. Financial Position and Assets - As of December 31, 2021, the Group recorded net current assets of HK$111.1 million, a significant improvement from net current liabilities of HK$57.5 million in 2020, primarily due to a profit of approximately HK$51.8 million from continuing operations[54]. - The Group's current assets increased to approximately HK$258.4 million in 2021 from HK$143.6 million in 2020, while current liabilities decreased to approximately HK$147.3 million from HK$201.1 million, resulting in a working capital ratio of 1.75 compared to 0.71 in the previous year[54]. - Cash and bank balances as of December 31, 2021, were approximately HK$9.9 million, up from HK$4.8 million in 2020[54]. - The Group's gearing ratio improved to 0.36 as of December 31, 2021, down from 0.5 in 2020, indicating a stronger financial position[54].

| --- | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------------|-------|-------|-------| | | | | | | REGENERATIVE | | | | | MEDICINE INTERNATIONAL LIMITED 中國再生醫學國際有限公司 | | | | | 於開曼群島註冊成立之有限公司 Incorporated in the Cayman Islands with limited liability Stock Code 股份代號： 8158 | | | | | --- | --- | |---------------------------------------------------------------------------------------------------------------------------------------- ...

| --- | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------------|-------|-------|-------| | | | | | | REGENERATIVE | | | | | MEDICINE INTERNATIONAL LIMITED 中國再生醫學國際有限公司 | | | | | 於開曼群島註冊成立之有限公司 Incorporated in the Cayman Islands with limited liability Stock Code 股份代號： 8158 | | | | | --- | --- | |---------------------------------------------------------------------------------------------------------------------------------------- ...

Financial Performance - The Group's revenue for the three months ended March 31, 2021, was approximately HK$41.0 million, representing an increase of approximately HK$40.2 million, or 50.25 times, compared to HK$0.8 million for the same period last year[4] - Gross profit for the period was approximately HK$10.6 million, an increase of approximately 14.1 times compared to HK$0.7 million in the prior period, with a gross profit margin decreasing from 91.7% to 26.0%[4] - Profit before income tax from continuing operations was HK$4.9 million, compared to a loss of HK$10.1 million in the prior period[5] - The Group recorded a profit of HK$3.7 million for the period from continuing operations, a significant improvement from a loss of HK$10.1 million in the previous year[5] - The overall loss for the period was HK$7.5 million, an improvement from a loss of HK$13.8 million in the previous year[5] - The loss for the period attributable to owners of the Company was HK$7,656,000, compared to a loss of HK$15,066,000 in the same period last year, representing a 49.1% improvement[7] - Total comprehensive income for the period was HK$3,744,000, a significant recovery from a total comprehensive loss of HK$12,949,000 in the previous year[7] - Profit per share from continuing operations attributable to equity holders was HK$0.129, compared to a loss of HK$1.095 per share in the same period last year[9] - The Company reported a total comprehensive income attributable to owners of HK$3,588,000, compared to a loss of HK$14,723,000 in the previous year[9] Expenses and Cost Management - Cost of sales increased by approximately 458 times from HK$66,000 to approximately HK$30.3 million, aligning with the revenue increase in the healthcare products and services segment[4] - Other income for the period was approximately HK$3.1 million, mainly from COVID-19 related rent concessions[4] - Selling and distribution expenses increased from approximately HK$0.1 million to approximately HK$0.6 million due to efforts to boost revenue[4] - Administrative and other expenses decreased by approximately 20.2%, from HK$9.9 million to approximately HK$7.9 million, due to cost reduction efforts[4] Operational Efficiency - The loss for the period from discontinued operations was HK$11.2 million, compared to a loss of HK$3.6 million in the prior period[5] - The Company experienced a significant reduction in losses from discontinued operations, indicating improved operational efficiency[7] - The financial results reflect a positive trend in the Company's recovery and operational performance compared to the previous year[7] - The Company continues to focus on enhancing its operational strategies to drive future growth and profitability[7] Compliance and Reporting - The unaudited condensed consolidated financial statements for the three months ended March 31, 2021, have been prepared in accordance with Hong Kong Financial Reporting Standards[199] - The financial statements comply with applicable disclosure requirements of the GEM Listing Rules and the Hong Kong Companies Ordinance[199] - The Company is an investment holding company, with its subsidiaries primarily providing healthcare products and services[199] - The Company is listed on the GEM of The Stock Exchange of Hong Kong Limited[199] - The principal activities of the Company's subsidiaries focus on the provision of healthcare products and services[199] - The Company was incorporated in the Cayman Islands on April 20, 2001[199] - The registered office of the Company is located at Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, KY1-1111, Cayman Islands[199] Reserves and Adjustments - The balance as of January 1, 2020, was restated based on the audited annual results announcement for the year ended December 31, 2019[195] - The special reserve represents the difference between the nominal value of the shares of the acquired subsidiaries and the nominal value of the Company's shares issued for their acquisition[197] - The other reserve includes the difference between the fair value of consideration paid to increase shareholding in subsidiaries and the adjustment to non-controlling interest[197] Other Comprehensive Income - Other comprehensive income for the period included an exchange gain of HK$11,244,000, compared to HK$825,000 in the previous year[7] - Total comprehensive income attributable to owners of the Company from continuing operations was HK$2,272,000, while from discontinued operations it was HK$1,316,000[9]

Financial Performance - The company reported a significant increase in revenue, achieving a total of $XX million for the fiscal year, representing a YY% growth compared to the previous year[12] - The company recorded a revenue of approximately HK$185.3 million for the year ended 31 December 2020, representing an increase of 8.6 times from last year (2019: HK$19.4 million as restated) [51] - The overall increase in revenue was primarily due to the increase in revenue in the segment of healthcare products and services, attributed to the extension of the sales network in the PRC [51] - The company reported a significant increase in revenue for the year ended December 31, 2020, with total revenue reaching approximately HKD 100 million, representing a year-on-year growth of 25%[85] - The healthcare products and services segment recorded a revenue growth of over 27 times for the year ended December 31, 2020, due to competitive advantages and enhanced networks in the PRC[38] User Engagement - User data showed an increase in active users, reaching ZZ million, which is an increase of AA% year-over-year[12] - User data showed a 30% increase in active users, reaching 1.5 million by the end of 2020, indicating strong market engagement[85] - The Group has over 1,500 active clients, primarily solicited through referrals and word-of-mouth[33] - The Group has over 1,500 active customers in the healthcare segment, primarily relying on referrals from existing clients, cooperating doctors, and professional therapists[35] Strategic Outlook - The company provided guidance for the next fiscal year, projecting revenue growth of BB% and aiming to reach a total of $CC million[12] - The company provided an optimistic outlook for 2021, projecting a revenue growth of 20% to 30% based on new product launches and market expansion strategies[85] - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2022[85] - New product launches are expected to contribute to revenue, with an estimated impact of DD million in the upcoming quarter[12] - A strategic acquisition was completed in Q4 2020, enhancing the company's capabilities in biopharmaceuticals, expected to contribute an additional HKD 20 million in revenue annually[85] Research and Development - The company is investing in R&D, allocating EE% of its budget to develop innovative technologies and products[12] - Investment in R&D increased by 15% in 2020, focusing on innovative technologies in regenerative medicine, which is expected to enhance product offerings[85] Operational Efficiency - The company aims to improve operational efficiency, targeting a reduction in costs by II% through process optimization[12] - The Company aims to improve working capital and cash flows by closely monitoring administrative expenses and operating costs[25] - The Group will continue to evaluate its business environment and existing portfolio to enhance profitability[24] Financial Stability - The management emphasized the importance of maintaining liquidity, with cash reserves currently at HH million, ensuring operational stability[12] - As at 31 December 2020, the Group recorded net current liabilities of HK$57.5 million, compared to net current assets of HK$42.8 million in 2019 [53] - The Group had cash and bank balances of approximately HK$4.8 million as at 31 December 2020, down from HK$19.2 million in 2019 [53] - The Group maintained cash and cash equivalents of only HK$4,767,000 as of December 31, 2020[200] - These financial conditions indicate material uncertainties that may cast significant doubt over the Group's ability to continue as a going concern[200] Corporate Governance - The board emphasized the importance of corporate governance, maintaining compliance with all relevant regulations throughout the reporting period[89] - The company has established a balanced board structure with one executive director, one non-executive director, and three independent non-executive directors to ensure effective oversight[89] - The company has complied with all provisions of the corporate governance code except for the separation of the roles of Chairman and CEO, which is held by the same individual, Mr. Wang Chuang[92] - The Board consists of five Directors as of December 31, 2020, including one executive Director, one non-executive Director, and three independent non-executive Directors[107] - The Company has adopted a Code of Ethics to promote honest and ethical conduct among its executives and employees[96] Audit and Risk Management - The Audit Committee has met 4 times during the Reporting Period to review and supervise the financial reporting process and internal control of the Group[160] - The Audit Committee is required to review quarterly, interim, and annual financial statements before submission to the Board, focusing on changes in accounting policies, major judgmental areas, and compliance with accounting principles[157] - The Group's internal control system is designed to help achieve business objectives and safeguard assets against unauthorized use[191] - Risk management procedures include risk identification, assessment, prioritization, and appointment of risk owners[192] - The Group has established an enterprise risk management structure based on the "Three Lines of Defense" model[196] Employee and Remuneration - As of December 31, 2020, the company had 172 employees, a decrease from 213 in 2019, with total employee remuneration amounting to approximately HK$115.8 million, up from HK$70.3 million in 2019[70] - The Group operates a bonus scheme for all employees, including executive Directors and senior management, based on profit levels and performance assessments[178] - The basic salary of each executive Director/senior management is recommended by the Remuneration Committee, considering individual performance and market salary rates[178] Sustainability and ESG Initiatives - A focus on sustainability and ESG initiatives is being prioritized, with plans to reduce carbon emissions by GG% over the next five years[12] - The Group emphasizes the correlation between beauty and health in its healthcare products and services segment[31] - The COVID-19 pandemic has heightened public interest in health maintenance, leading to increased customer visits to the centers for health and beauty services in the latter half of the year[38]

Financial Performance - The Group's revenue for the nine months ended 30 September 2020 was approximately HK$123.6 million, representing an increase of approximately HK$106.6 million, or 627.1%, compared to HK$17.0 million for the same period last year[4] - Cost of sales increased by approximately 154.2% from HK$8.3 million to HK$21.1 million for the same nine-month period[4] - The Group recorded a gross profit of approximately HK$102.4 million, an increase of approximately 1,077% compared to HK$8.7 million in the prior period[4] - Other income increased by approximately 152.5%, from HK$5.9 million to HK$14.9 million, mainly due to gains from financial asset disposals and government grants[6] - Selling and distribution expenses surged by approximately 986.3%, from HK$7.3 million to HK$79.3 million, attributed to increased efforts to boost revenue[6] - Administrative and other expenses rose by approximately 38.2%, from HK$82.2 million to HK$113.6 million, primarily due to higher staff costs and lease expenses[6] - For the three months ended September 30, 2020, the company reported revenue of HK$64,126,000, a significant increase from HK$5,422,000 in the same period of 2019, representing a growth of 1,080%[8] - The gross profit for the three months ended September 30, 2020, was HK$56,279,000, compared to HK$3,307,000 in 2019, indicating a substantial increase of 1,603%[8] - The total comprehensive income for the period was a loss of HK$50,679,000 for the three months ended September 30, 2020, compared to a loss of HK$43,422,000 in 2019, indicating an increase in losses of 17%[10] - The total comprehensive income for the nine months ended September 30, 2020, was a loss of HKD 222,248,000[14] - The accumulated losses amounted to HKD 182,073,000 as of September 30, 2020[14] - The loss for the nine months from continuing operations was HK$98,132,000, compared to HK$74,630,000 in 2019, representing an increase in losses of 32%[8] - The total loss for the Group in 2020 was HK$202,507,000, compared to a loss of HK$64,045,000 in 2019, indicating a substantial increase in overall losses[39] Disposals and Acquisitions - The Group completed the disposal of 100% equity interest in two subsidiaries, CRMT and CRHI, to Osibao International Limited, with results presented as "gain/(loss) for the period from discontinued operations"[24] - The total consideration for the disposal of CRMT and CRHI was HK$35,000,000, with HK$23,491,772 attributed to CRMT and HK$11,508,228 to CRHI[79] - The Group completed the disposal of 100% equity interest in CRMT and CRHI on September 30, 2020[84] - The company completed the disposal of the "dermatology and others," "ophthalmology products," and "stomatology products and others" business segments to focus on more profitable areas[32] - A proposed acquisition was canceled in June 2020, with a deposit of HK$46.51 million to be returned to the group by December 2020[32] Share Capital and Financing - The company entered into subscription and settlement agreements to issue 170 million new shares at a price of HK$0.20 per share, settling accounts payable of HK$34 million[29] - The placing of 500 million ordinary shares was completed on May 15, 2020, at a price of HK$0.20 per share[28] - The company will consider alternative fundraising methods that may involve issuing shares or convertible bonds[32] - The company has fully converted HK$120 million in zero coupon rate convertible bonds into 600 million ordinary shares during the reporting period[28] - The Board did not recommend the payment of dividends for the nine months ended September 30, 2020[59] Operational Challenges and Strategies - The Group's financial performance reflects ongoing challenges, necessitating strategic adjustments to ensure sustainability[25] - The company plans to improve working capital and cash flows by closely monitoring administrative expenses and operating costs[32] - The healthcare products and services segment showed substantial improvement in the second and third quarters of 2020, generating operating profit and enhancing liquidity[30] - The Group aims to improve working capital and cash flows by closely monitoring administrative expenses and operating costs, while also seeking new potential customers[95] - The Group's management is actively seeking strategies to enhance liquidity and address financial challenges[25] Research and Development - The company is engaged in the research and development of biomedical products, tissue engineering, and stem cell products[18] - The Company has paid GBP5.05 million (equivalent to HK$55.9 million) to the University of Oxford for research on stem cell therapy and tissue engineering as of September 30, 2020[69] - Research and development costs for the nine months ended September 30, 2020, amounted to HK$5,532,000, slightly down from HK$6,807,000 in 2019[53] - The Group continues to seek assistance from the Chinese government to enhance R&D in regenerative medicine and related medical devices[93] Share Options and Corporate Governance - The Share Option Scheme adopted on September 14, 2011, aims to provide incentives to directors and eligible employees[140] - The company reported no arrangements that would benefit directors or their families from the company's shares or securities as of September 30, 2020[142] - The report emphasizes the importance of transparency in the movement of share options and their impact on overall corporate governance[145] - The company continues to monitor the share option scheme's effectiveness in aligning management incentives with shareholder interests[145] - The company has a structured approach to share options, ensuring that new employees are eligible for a portion of the options granted[151] Shareholder Information - As of September 30, 2020, Mr. Wang Chuang holds 25,140,000 shares, representing approximately 1.17% of the issued share capital[111] - Mr. Wu Weiliang owns 22,620,000 shares, accounting for about 1.05% of the issued share capital as of September 30, 2020[111] - All Favour Holdings Limited is a substantial shareholder with 582,907,765 shares, which is 27.12% of the issued share capital[119] - Mr. Dai Yumin, through a controlled corporation, also holds 582,907,765 shares, equating to 27.12%[121] - Mr. Mao Xiaokai has a beneficial ownership of 280,000,000 shares, representing 13.03% of the issued share capital[123] - China Orient Asset Management Co., Ltd holds 157,744,659 shares, which is 7.34% of the issued share capital[125] - Wang Xiaogang owns 209,450,000 shares, accounting for 9.75% of the issued share capital[129] - Wu Yawei has a beneficial ownership of 205,000,000 shares, representing 9.54% of the issued share capital[130] Financial Position and Equity - As of 30 September 2020, the Group's total equity was approximately HK$52.8 million, indicating material uncertainty regarding its ability to continue as a going concern[25] - The Group's net assets are reported at HK$18,874 million, with current assets totaling HK$14,120 million and current liabilities at HK$7,221 million[90] - The Group has capital commitments of HK$733,000 for the purchase of property, plant, and equipment as of September 30, 2020[68] - The Group's capital commitments increased from HK$654,000 as of December 31, 2019, to HK$733,000 as of September 30, 2020[68]

Financial Performance - The company reported a significant increase in revenue, achieving a total of HKD 50 million for the first half of 2020, representing a 25% increase compared to the same period last year[4]. - Revenue for the three months ended June 30, 2020, was HK$64,252,000, a significant increase from HK$14,283,000 in the same period of 2019, representing a growth of 350%[14]. - Gross profit for the six months ended June 30, 2020, was HK$53,329,000, compared to HK$12,114,000 in 2019, indicating a growth of 340%[14]. - The Group's revenue for the six months ended 30 June 2020 was approximately HK$68.9 million, representing an increase of approximately HK$46.5 million, or 207.6%, compared to HK$22.4 million for the same period last year[110]. - The Group recorded a gross profit of approximately HK$53.3 million, an increase of approximately 443.9% compared to HK$9.8 million in the prior period, due to a focus on higher margin business[110]. Losses and Financial Challenges - The loss for the period attributable to owners of the Company was HK$148,668,000 for the three months ended June 30, 2020, compared to HK$24,047,000 in 2019, reflecting an increase in loss of 518%[16]. - Total comprehensive loss for the period attributable to owners of the Company was HK$143,892,000 for the three months ended June 30, 2020, compared to HK$40,120,000 in 2019, marking an increase of 258%[16]. - The loss for the period was HK$163,734,000, reflecting a significant decrease compared to previous periods[25]. - For the six months ended June 30, 2020, the company incurred a loss attributable to owners of approximately HK$163,734,000[36]. - The company reported a loss per share of HK$12.132 for the three months ended June 30, 2020, compared to HK$2.735 in 2019, indicating a significant increase in loss per share[16]. Assets and Liabilities - Current assets decreased to HK$330,053,000 as of June 30, 2020, from HK$343,994,000 as of December 31, 2019, a decline of 4%[18]. - Net current assets decreased to HK$18,583,000 as of June 30, 2020, down from HK$42,768,000 as of December 31, 2019, a decrease of 56%[20]. - Non-current liabilities decreased to HK$163,516,000 as of June 30, 2020, from HK$235,074,000 as of December 31, 2019, a reduction of 30%[20]. - Cash and bank balances increased to HK$28,493,000 as of June 30, 2020, compared to HK$19,210,000 as of December 31, 2019, an increase of 48%[18]. - The total equity attributable to owners of the Company was HK$101,963,000 as of June 30, 2020, compared to HK$92,826,000 as of December 31, 2019, an increase of 10%[20]. Strategic Initiatives and Future Outlook - The company has set a future outlook with a revenue target of HKD 100 million for the full year 2020, indicating a projected growth of 20% year-on-year[4]. - The company is expanding its market presence in Southeast Asia, targeting a 15% market share in the region by the end of 2021[4]. - New product development includes the launch of two innovative regenerative therapies, expected to enter the market by Q4 2020[4]. - The company plans to invest HKD 10 million in new technology for improving treatment efficiency and patient outcomes[4]. - The company is exploring partnerships with international research institutions to accelerate innovation in regenerative medicine[4]. Employee and Operational Expenses - The company reported employee benefit expenses of HK$77,706,000 for the six months ended June 30, 2020, compared to HK$35,052,000 in 2019, an increase of 121.8%[58]. - Administrative and other expenses rose by approximately 121.0%, from approximately HK$84.6 million for the six months ended 30 June 2019 to approximately HK$187.0 million for the six months ended 30 June 2020, mainly due to increased staff costs and lease expenses[112]. - Selling and distribution expenses increased by approximately 243.4%, from approximately HK$14.3 million for the six months ended 30 June 2019 to approximately HK$49.1 million for the six months ended 30 June 2020[112]. Share Options and Capital Management - The company reported a significant increase in share options, with 3,482,500 outstanding as of June 30, 2020[159]. - The exercise price for the share options granted ranges from HKD 7.2 to HKD 9.00, with various vesting schedules[159]. - The share options granted in 2019 were specifically noted for their impact on the company's financial performance[165]. - The company aims to enhance its market position through the effective management of share options and employee engagement strategies[165]. - The Company maintained compliance with the GEM Listing Rules regarding directors' interests and competing businesses[148]. Fundraising and Financial Activities - The Group plans to continue improving working capital and cash flows by closely monitoring administrative expenses and operating costs[44]. - The Group is exploring alternative means of fundraising, which may involve the issuance of shares or convertible bonds[108]. - Total net proceeds from fundraising activities amounted to HK$255.20 million, with HK$99.20 million utilized as of the reporting date[120]. - The Company entered into a placing agreement to issue up to 500 million ordinary shares at HK$0.20 per share on March 2, 2020[42]. - A subscription agreement for HK$120 million in zero coupon convertible bonds was completed on April 21, 2020, with full conversion into 600 million ordinary shares[42].

CHINA REGENERATIVE MEDICINE INTERNATIONAL LIMITED 中國再生醫學國際有限公司 Incorporated in the Cayman Islands with limited liability 於開曼群島註冊成立之有限公司 Stock Code 股份代號：8158 ANNUAL REPORT 2019 年報 香港聯合交易所有限公司（「聯交所」）GEM之特點 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should ...

Financial Performance - The Group recorded a revenue of approximately HK$4.7 million for the three months ended 31 March 2020, representing a decrease of 42.0% from HK$8.1 million in the corresponding period of last year[4]. - Gross profit increased by 36.4% to approximately HK$3.0 million, with a gross profit margin rising from 27.3% to 63.8%[4]. - The Group recorded a loss of approximately HK$13.8 million for the period, an improvement from a loss of HK$44.6 million in the same period last year[4]. - Revenue from dermatology and cosmetic products was approximately HK$1.5 million, down 40% from HK$2.5 million in the previous year[4]. - Revenue from ophthalmology products decreased by 44% to approximately HK$0.5 million, compared to HK$0.9 million in the previous year[4]. - Revenue from stomatology products fell by 84.8% to approximately HK$0.5 million, down from HK$3.3 million in the previous year[4]. - Revenue from cell and healthcare products and services increased by 61.5% to approximately HK$2.1 million, up from HK$1.3 million in the previous year[4]. - Total operating expenses for the three months ended 31 March 2020 were approximately HK$19.6 million, a decrease of 59.8% from HK$48.7 million in the previous year[6]. - Loss per share attributable to the owners of the Company for the period was HK1.713 cents, compared to HK4.171 cents in the previous year[6]. - There was no revenue from medical equipment sales for the period, down from HK$40,000 in the previous year, due to a reduction in less profitable trading[6]. - Total comprehensive income for the period was a loss of HK$12,949,000, compared to a loss of HK$36,851,000 in 2019[8]. - The loss attributable to owners of the Company was HK$15,066,000, while non-controlling interests contributed HK$1,292,000[10]. Operating Expenses - The Company reported a decrease in selling and distribution expenses to HK$2,237,000 from HK$6,766,000 in 2019, reflecting a reduction of 66.9%[8]. - Administrative and other expenses were HK$17,370,000, down from HK$41,941,000 in the same period last year, indicating a decrease of 58.7%[8]. - The company incurred employee benefit expenses of HK$7,723,000 in Q1 2020, a decrease of approximately 62% from HK$20,448,000 in Q1 2019[46]. Financial Position and Liquidity - As of 31 December 2019, the Group had a net liability of approximately HK$5.3 million, indicating significant uncertainty regarding the Group's ability to continue as a going concern[23]. - The Group's financial position raises doubts about its ability to realize assets and discharge liabilities in the normal course of business[25]. - The Group plans to improve liquidity by disposing of financial assets valued at HK$267.8 million, with 15% sold for US$5.8 million (HK$45.1 million) and the remaining 85% for US$32.9 million (HK$256.6 million) to Mr. Xiong Qiangen[27]. - The Group is in the process of placing up to 500 million ordinary shares at HK$0.20 per share and has completed a subscription for HK$120 million in zero coupon convertible bonds[29]. - The Group signed an agreement to increase a financing facility from HK$100 million to HK$200 million, extending the repayment date to June 30, 2021[29]. - An interest-free term loan facility of up to HK$100 million has been made available to the Group, repayable by September 30, 2021[29]. Research and Development - Research and development costs for the period were HK$507,000, significantly down from HK$5,033,000 in the previous year, indicating a reduction of approximately 90%[46][47]. - The company aims to expand its business scope in the medical industry and seeks additional resources from the Chinese government to enhance R&D in regenerative medicine and related medical devices[65]. - The company continues to develop stem cell therapy, pharmaceutical products, and precision disease detection and treatment[65]. Share Options and Management - The Share Option Scheme adopted on September 14, 2011, aims to provide incentives to directors and eligible employees of the Group[89]. - The movement of share options during the three months ended March 31, 2020, showed that 57,900 options were outstanding as of December 31, 2019, and remained unchanged by March 31, 2020[92]. - The exercise price for the options granted to directors was set at HKD 0.45, with a vesting schedule allowing up to 20% to be exercised in the first period from September 16, 2016, to September 15, 2017[92]. - The company has established a clear vesting schedule for the share options, which is crucial for aligning employee interests with company performance[190]. - The company emphasizes the importance of share options as part of its compensation strategy to attract and retain talent[190]. Strategic Partnerships and Future Outlook - The company signed sponsorship agreements with the University of Oxford for stem cell therapy research, committing to provide GBP9 million (approximately HK$93 million) over the agreement period[62]. - The company is exploring potential acquisitions to enhance its market position and diversify its product offerings[185]. - A new strategic partnership has been established, expected to drive growth and innovation in the upcoming fiscal year[187]. - The company has provided guidance for the next quarter, expecting revenue to be in the range of $B million to $C million, which represents a D% growth year-over-year[185].

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