Financial Performance - For the six months ended June 30, 2022, the group achieved a consolidated revenue of RMB 205,210,475, a decrease of 15.13% compared to RMB 241,786,926 for the same period last year[6] - The consolidated gross profit for the same period was RMB 10,370,957, representing a significant decrease of 63.05% from RMB 28,064,013 in the previous year[6] - The loss attributable to equity holders for the six months ended June 30, 2022, was RMB 13,248,062, compared to a profit of RMB 809,551 for the same period last year, resulting in a basic loss per share of RMB 0.699[6] - Total revenue for the six months ended June 30, 2022, was RMB 205,210,475, a decrease from RMB 241,786,926 in the same period of 2021, representing a decline of approximately 15%[13] - The company reported a net loss before tax of RMB (13,248) for the six months ended June 30, 2022, compared to a loss of RMB (1,876) in the same period of 2021[18] - The company reported a basic loss per share of RMB (13,248,062) for the six months ended June 30, 2022, compared to a profit of RMB 809,551 in the same period of 2021[19] Assets and Liabilities - Non-current assets as of June 30, 2022, totaled RMB 138,480,513, slightly down from RMB 138,846,665 as of December 31, 2021[8] - Current assets increased significantly to RMB 361,364,056 as of June 30, 2022, compared to RMB 208,748,747 as of December 31, 2021[8] - The total current liabilities amounted to RMB 363,481,875, significantly higher than RMB 192,023,885 in the previous year[10] - The total assets minus current liabilities stood at RMB 136,362,694, a decrease from RMB 155,571,527 in the previous year[10] - As of June 30, 2022, the total assets were approximately RMB 499,844,569, with total liabilities of RMB 363,481,875, leading to a debt-to-asset ratio of 0.79[37] Cash Flow and Financing - Operating cash flow for the six months ended June 30, 2022, was a net outflow of RMB 21,636,996, compared to a net outflow of RMB 17,966,948 in the same period of 2021[11] - The cash and bank balances decreased to RMB 5,204,067 at the end of the period, down from RMB 26,789,577 at the end of the previous year[11] - The company raised RMB 30,000,000 from short-term/long-term bank loans during the financing activities for the six months ended June 30, 2022[11] - Financing costs increased significantly to RMB 3,330,598 for the six months ended June 30, 2022, compared to RMB 735,141 in the same period last year[7] - The company incurred financing expenses of RMB 3,330,598 for the six months ended June 30, 2022, compared to RMB 735,141 in the same period of 2021[14] Expenses - Research and administrative expenses for the six months ended June 30, 2022, were RMB 12,242,150, down from RMB 14,279,494 in the previous year[7] - Sales and distribution costs decreased by 38.11% year-on-year to RMB 8,118,740, down from RMB 13,117,605 in the previous year[32] - R&D and administrative expenses were RMB 12,242,150, reflecting a year-on-year decrease of 14.27% from RMB 14,279,494[33] - Financing costs surged by 453.06% year-on-year to RMB 3,330,598, compared to RMB 735,141 in the same period last year[34] Shareholder Information - The company did not recommend the payment of any dividend for the six months ended June 30, 2022[6] - The company did not recommend an interim dividend for the six months ended June 30, 2022, compared to no dividend in the same period of 2021[28] - The major shareholders include Tianjin Economic and Technological Development Zone State-owned Assets Management Co., Ltd. with 182,500,000 shares (9.63%), Shenzhen Xiangyong Investment Co., Ltd. with 180,000,000 shares (9.50%), and Guangdong Jiamei Ecological Technology Co., Ltd. with 180,000,000 shares (9.50%) [46] Business Operations - The company is involved in two main business areas: bio-composite fertilizers and elderly care services, with ongoing adjustments to product structure and sales management in response to market demand[29] - The company faced increased production costs for bio-composite fertilizers due to rising raw material prices and logistics costs, but successfully passed some of these costs onto customers[29] - The company plans to enhance marketing management and adjust product structure to improve market share in the compound fertilizer sector[41] - The aging population in China reached 264 million, accounting for 18.7% of the total population, indicating a growing demand for elder care services[42] - The company aims to develop its rental business for elderly aids, leveraging its management of multiple elder care institutions in Shanghai[42] Corporate Governance - The company has established an audit committee to oversee financial reporting and internal controls[53] - The board believes that the dual role of the chairperson and CEO held by Ms. Sun Li is in the best interest of the company for maintaining policy continuity and operational stability[59] - The company is actively seeking candidates for the CEO position to enhance corporate governance transparency and independence[59] - The company has complied with all provisions of the corporate governance code except for the separation of the roles of chairperson and CEO[59] - There were no arrangements that allowed directors or supervisors to profit from purchasing company shares during the review period[45] - The company has not entered into any management contracts for overall or major business operations during the first half of 2022[56] - The company did not approve any new share option plans during the period ending June 30, 2022 [55] - There were no securities transactions by directors that violated trading rules during the review period[57] Audit and Financial Reporting - The audit committee reviewed the interim results and report for the six months ending June 30, 2022 [54] - The company has not recognized any significant capital commitments not provided for in the financial statements as of June 30, 2022[26]

[Report Overview](index=1&type=section&id=Report%20Overview) This section provides an overview of the company's information, disclaimer, and a summary of its quarterly financial performance [Company Information and Disclaimer](index=1&type=section&id=Company%20Information%20and%20Disclaimer) This report for Tianjin TEDA Biomedical Engineering Co., Ltd.'s Q1 2022 emphasizes GEM market investment risks and director responsibility for accuracy - The GEM market is positioned for small and medium-sized companies with higher investment risks compared to main board companies, requiring investors to understand potential risks and consider carefully[2](index=2&type=chunk) - Company directors jointly and individually assume full responsibility for the report's accuracy, completeness, and absence of misleading or fraudulent content[3](index=3&type=chunk) [Quarterly Results Summary](index=3&type=section&id=Quarterly%20Results%20Summary) Q1 2022 saw significant year-on-year declines in turnover and gross profit, a shift from profit to loss, and a substantial increase in loss attributable to equity holders 2022 Q1 Key Financial Indicators Summary | Indicator | 2022 Q1 (RMB) | 2021 Q1 (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Consolidated Turnover | 89,195,530 | 124,407,625 | -28.30% | | Consolidated Gross Profit | 5,489,781 | 13,722,640 | -59.99% | | Loss attributable to equity holders of the Company | (6,043,544) | (165,625) | Loss widened | | Loss per share | 0.319 cents | 0.009 cents | Loss widened | - The Board of Directors does not recommend paying a dividend for the three months ended March 31, 2022[5](index=5&type=chunk) [Unaudited Quarterly Results](index=4&type=section&id=Unaudited%20Quarterly%20Results) This section presents the unaudited consolidated income statement and detailed notes on the financial statements for the quarter [Consolidated Income Statement](index=4&type=section&id=Consolidated%20Income%20Statement) In Q1 2022, the group experienced a significant year-on-year decline in revenue and gross profit, leading to a substantial increase in loss for the period 2022 Q1 Unaudited Consolidated Income Statement | Indicator | 2022 Q1 (RMB) | 2021 Q1 (RMB) | | :--- | :--- | :--- | | Revenue | 89,195,530 | 124,407,625 | | Cost of Sales | (83,705,749) | (110,684,985) | | **Gross Profit** | **5,489,781** | **13,722,640** | | Other income and losses, net | 26,569 | 140,814 | | Selling and distribution costs | (4,263,313) | (7,828,413) | | R&D and administrative expenses | (6,621,896) | (7,455,064) | | Finance costs | (742,591) | (73,225) | | Loss before tax | (6,111,450) | (1,493,248) | | Income tax | – | – | | **Loss for the period** | **(6,111,450)** | **(1,493,248)** | | Loss attributable to owners of the Company | (6,043,544) | (165,625) | | Non-controlling interests | (67,906) | (1,327,623) | | Loss per share – Basic (RMB) | (0.319) cents | (0.009) cents | [Notes to Financial Statements](index=5&type=section&id=Notes%20to%20Financial%20Statements) This section details the basis of financial statement preparation, accounting policies, revenue breakdown, income tax treatment, loss per share calculation, and dividend policy - Financial statements are prepared on a historical cost convention and in accordance with Hong Kong Financial Reporting Standards, on a going concern basis[7](index=7&type=chunk) - Q1 2022 fertilizer product revenue decreased year-on-year, while elderly care and healthcare services revenue significantly increased year-on-year[8](index=8&type=chunk) - Income tax expenses for Hong Kong and China were zero during the period due to no taxable income or business[10](index=10&type=chunk) - Basic loss per share for Q1 2022 was **RMB 0.319 cents**, a significant increase from **RMB 0.009 cents** in the prior year[13](index=13&type=chunk) - The Board of Directors does not recommend paying an interim dividend for Q1 2022[14](index=14&type=chunk) [Basis of Presentation and Accounting Policies](index=5&type=section&id=Basis%20of%20Presentation%20and%20Accounting%20Policies) Financial statements are prepared under historical cost convention, adhering to HKFRS and GEM Listing Rules, with no significant impact from new HKFRS applications - Financial statements are prepared under the historical cost convention and in accordance with Hong Kong Financial Reporting Standards, generally accepted accounting principles in Hong Kong, the Hong Kong Companies Ordinance, and the disclosure requirements of the GEM Listing Rules[7](index=7&type=chunk) - The application of new Hong Kong Financial Reporting Standards had no significant impact on the Group's unaudited operating results and financial position[7](index=7&type=chunk) [Revenue Analysis](index=5&type=section&id=Revenue%20Analysis) This section provides a breakdown of the Group's revenue by product category for the first quarter of 2022 and 2021 2022 Q1 Revenue Composition | Product Category | 2022 Q1 (RMB) | 2021 Q1 (RMB) | | :--- | :--- | :--- | | Fertilizer products | 89,086,907 | 124,379,590 | | Elderly care and healthcare services | 108,623 | 28,035 | [Income Tax](index=6&type=section&id=Income%20Tax) This section details the applicable income tax rates in China and Hong Kong, and reconciles the loss before tax to the period's tax expense - The statutory corporate income tax rate in China is **25%**, with high-tech enterprises (e.g., Guangdong Fulilong Compound Fertilizer Co., Ltd.) enjoying a preferential rate of **15%**[9](index=9&type=chunk) - Income tax expenses for Hong Kong and China were zero during the period due to no taxable income or business[10](index=10&type=chunk) Reconciliation of Income Tax Expense to Loss Before Income Tax Expense | Indicator | 2022 Q1 (RMB thousands) | 2021 Q1 (RMB thousands) | | :--- | :--- | :--- | | Loss before income tax expense | (6,111) | (1,493) | | Tax calculated at corporate income tax rate of 25% | (1,528) | (373) | | Tax rate difference | 253 | 67 | | Impact of tax loss calculation | 1,275 | 306 | | Tax expense for the period | – | – | [Loss Per Share](index=7&type=section&id=Loss%20Per%20Share) This section outlines the calculation of basic loss per share for the first quarter of 2022 and 2021 Basic Loss Per Share Calculation | Indicator | 2022 Q1 (RMB) | 2021 Q1 (RMB) | | :--- | :--- | :--- | | Loss for calculation of basic earnings per share | (6,043,544) | (165,625) | | Weighted average number of ordinary shares | 1,894,500,000 | 1,894,500,000 | | Basic loss per share | (0.319) cents | (0.009) cents | [Dividends](index=8&type=section&id=Dividends) The Board of Directors has not recommended any interim dividend for the three months ended March 31, 2022 - The Board of Directors does not recommend paying an interim dividend for the three months ended March 31, 2022[14](index=14&type=chunk) [Changes in Reserves](index=8&type=section&id=Changes%20in%20Reserves) The report includes a statement of changes in reserves, but the table format is unclear, making specific data interpretation difficult - The report contains a statement of changes in reserves, but the table content format is disorganized and difficult to interpret specific data[15](index=15&type=chunk) [Management Discussion and Analysis](index=9&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the Group's business operations, financial performance, risk factors, and future strategic outlook [Business Review](index=9&type=section&id=Business%20Review) The Group operates in biological compound fertilizers and elderly care services, with compound fertilizers as its core, while brainwave detection business development is slow - The Group is currently involved in two major business areas: biological compound fertilizer business and elderly care and healthcare business[16](index=16&type=chunk) - The elderly care and healthcare business focuses on individuals with severe cognitive impairment, offering operational management, resource integration, supervision, and consulting services, alongside developing assistive device leasing[16](index=16&type=chunk) - The brainwave detection business is developing slowly, and market expansion still requires time[16](index=16&type=chunk) [Financial Review](index=9&type=section&id=Financial%20Review) In Q1 2022, the Group's turnover, gross profit, and gross profit margin all significantly declined, leading to a substantial increase in loss attributable to owners 2022 Q1 Financial Performance Review | Indicator | 2022 Q1 (RMB) | 2021 Q1 (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Consolidated Turnover | 89,195,530 | 124,407,625 | -28.30% | | Consolidated Gross Profit | 5,489,781 | 13,722,640 | -59.99% | | Consolidated Gross Profit Margin | 6.15% | 11.03% | -4.88% | | Loss attributable to owners of the Company | (6,043,544) | (165,625) | Loss widened | | Loss per share | 0.319 cents | 0.009 cents | Loss widened | [Pledged Assets and Contingent Liabilities](index=9&type=section&id=Pledged%20Assets%20and%20Contingent%20Liabilities) As of March 31, 2022, the Group's contingent liabilities for bank loan guarantees were zero RMB, a significant reduction from RMB 3,000,000 at December 31, 2021 - As of March 31, 2022, contingent liabilities were **RMB zero**, a significant decrease from **RMB 3,000,000** as of December 31, 2021[18](index=18&type=chunk) [Foreign Currency Risk](index=10&type=section&id=Foreign%20Currency%20Risk) The Group faces minimal foreign currency risk as all sales and payments are settled in RMB - The Group faces minimal foreign currency risk as all sales are domestic sales settled in RMB, and all payments to suppliers are also settled in RMB[19](index=19&type=chunk) [Treasury Policy](index=10&type=section&id=Treasury%20Policy) The Group's bank borrowings are denominated in RMB, typically renewed annually, with cash balances held in licensed Chinese banks - The Group's bank borrowings are denominated in RMB and generally renewed annually upon maturity[20](index=20&type=chunk) - Any cash balances are deposited in licensed banks in China[20](index=20&type=chunk) [Future Outlook](index=10&type=section&id=Future%20Outlook) The Group anticipates a recovery in the compound fertilizer market and plans to optimize product structure, while expanding elderly care services through a light-asset model - The rapid increase in raw material prices for compound fertilizers may have ended, with the market expected to gradually recover; the company will strengthen marketing, adjust product structure, and promote efficient, intelligent production[21](index=21&type=chunk) - China's aging population highlights the elderly care service industry as a "sunrise industry" with great potential; the Group will primarily adopt a light-asset operating model, enhance professional capabilities, and vigorously develop assistive device leasing services[22](index=22&type=chunk) [Directors, Supervisors and Major Shareholders' Interests](index=12&type=section&id=Directors%2C%20Supervisors%20and%20Major%20Shareholders%27%20Interests) This section details the shareholdings of directors, supervisors, and major shareholders, and confirms the absence of competing interests or share option schemes [Directors' and Supervisors' Interests in Shares](index=12&type=section&id=Directors%27%20and%20Supervisors%27%20Interests%20in%20Shares) As of March 31, 2022, Ms. Sun Li indirectly held 15.83% of the company's shares, with no other directors disclosing interests or share option arrangements - Ms. Sun Li holds a long position of **300,000,000 ordinary shares**, representing **15.83%** of the issued share capital, indirectly held through Shenzhen Xiangyong Investment Co., Ltd. and Dongguan Luye Fertilizer Co., Ltd[23](index=23&type=chunk) - Except for Ms. Sun Li, as of March 31, 2022, no other directors, supervisors, or senior executives of the Company held any interests in the securities, related shares, and debentures of the Company or its associated corporations that needed to be disclosed to the Company and the Stock Exchange[24](index=24&type=chunk) - During the review period, neither the Company, its subsidiaries, nor its holding company entered into any arrangements that would allow the Company's directors and supervisors, or their respective spouses or children under 18, to profit from purchasing the Company's shares[25](index=25&type=chunk) [Major Shareholders](index=13&type=section&id=Major%20Shareholders) This report lists major shareholders holding over 5% of the company's shares as of March 31, 2022 Major Shareholders' Shareholding (as of March 31, 2022) | Shareholder Name/Company | Capacity | Number of Ordinary Shares | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Tianjin Economic-Technological Development Area State-owned Assets Management Co., Ltd. | Beneficial owner | 182,500,000 | 9.63% | | Shenzhen Xiangyong Investment Co., Ltd. | Beneficial owner | 180,000,000 | 9.50% | | Guangdong Jiamei Ecological Technology Co., Ltd. | Beneficial owner | 180,000,000 | 9.50% | | Dongguan Luye Fertilizer Co., Ltd. | Beneficial owner | 120,000,000 | 6.33% | - All shares are domestic shares[26](index=26&type=chunk) [Other Important Matters](index=14&type=section&id=Other%20Important%20Matters) This section covers the SJKGC profit guarantee, competing interests, audit committee activities, share option schemes, management contracts, and corporate governance practices [SJKGC Profit Guarantee Background and Status](index=14&type=section&id=SJKGC%20Profit%20Guarantee%20Background%20and%20Status) After acquiring SJKGC, the company faced unfulfilled profit guarantees for 2018 and 2019, leading to arbitration and revised settlement agreements - The Company acquired a **51% equity interest** in SJKGC in 2016, with SJK guaranteeing SJKGC's audited after-tax profit for each of the three fiscal years 2017, 2018, and 2019 would be no less than **USD 5,390,000**[28](index=28&type=chunk)[29](index=29&type=chunk) - The 2017 profit guarantee was not met, and SJK fulfilled its commitment by paying a cash dividend of **USD 2,750,000**[29](index=29&type=chunk) - The 2018 and 2019 profit guarantees were not met, and as of now, SJK has not paid the guaranteed cash dividends to the Company[30](index=30&type=chunk) - The Company initiated arbitration proceedings at the Hong Kong International Arbitration Centre on September 3, 2019, and revised the "Settlement Agreement" and related agreements in 2020 and 2021[30](index=30&type=chunk) [Competing Interests](index=15&type=section&id=Competing%20Interests) For the three months ended March 31, 2022, no directors, supervisors, or management shareholders had competing interests with the Group's business - For the three months ended March 31, 2022, no directors, supervisors, or management shareholders of the Company and their respective associates had or might have any competing interests with the Group's business, or any other conflicts of interest with the Group[31](index=31&type=chunk) [Audit Committee](index=16&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviews financial reporting, external audit, internal controls, and has reviewed the quarterly results - The Audit Committee comprises three independent non-executive directors: Mr. Li Xudong (Chairman), Mr. Wang Yongkang, and Ms. Gao Chun[32](index=32&type=chunk) - The committee's primary responsibilities include reviewing and overseeing the Group's financial reporting process, and examining the effectiveness of external audits, internal controls, and risk assessments[32](index=32&type=chunk) - The Audit Committee has reviewed the Group's first quarterly results and first quarterly report for the three months ended March 31, 2022[32](index=32&type=chunk) [Share Option Scheme](index=16&type=section&id=Share%20Option%20Scheme) No new share option schemes were approved by the company during the period ended March 31, 2022 - No new share option schemes were approved by the Company during the period ended March 31, 2022[33](index=33&type=chunk) [Management Contracts](index=16&type=section&id=Management%20Contracts) No management contracts for the overall business or any major business were entered into or existed during the period ended March 31, 2022 - No contracts concerning the management or administration of the Company's overall business or any major business were entered into or existed during the period ended March 31, 2022[34](index=34&type=chunk) [Purchase, Sale or Redemption of Securities](index=16&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's shares during the review period - The Company did not redeem any of its shares during the review period; neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares during the period ended March 31, 2022[35](index=35&type=chunk) [Corporate Governance Practices](index=17&type=section&id=Corporate%20Governance%20Practices) The Board and management are committed to complying with the GEM Listing Rules' Corporate Governance Code and believe full compliance was achieved during the review period - The Company's Board of Directors and management are consistently committed to implementing the provisions of the Corporate Governance Code contained in Appendix 15 of the GEM Listing Rules within the Group[36](index=36&type=chunk) - The Directors believe that the Company has complied with all Code provisions during the review period[36](index=36&type=chunk)

Financial Performance - Total assets for the year 2021 amounted to RMB 347,595,000, a decrease from RMB 392,919,000 in 2020[18] - Total liabilities for 2021 were RMB 237,236,000, showing a slight decrease from RMB 237,775,000 in 2020[18] - Shareholders' equity decreased to RMB 100,781,000 in 2021 from RMB 143,036,000 in 2020, reflecting a decline of approximately 29.5%[18] - Revenue for the year ended December 31, 2021, was RMB 476,385 thousand, an increase from RMB 369,355 thousand in 2020, representing a growth of approximately 29%[19] - Gross profit for 2021 was RMB 45,605 thousand, with a gross margin of 9.57%, compared to RMB 40,392 thousand and a gross margin of 10.94% in 2020[19] - The company reported a loss attributable to shareholders of RMB 42,255 thousand in 2021, an improvement from a loss of RMB 47,998 thousand in 2020[19] - The comprehensive gross profit for the same period was RMB 45,604,747, with a gross margin of 9.75%, down from 10.94% in 2020, primarily due to significant increases in raw material procurement prices[41] - The loss attributable to shareholders for the year ended December 31, 2021, was RMB 42,255,043, a decrease from RMB 47,998,435 in 2020, resulting in a loss per share of RMB 2.23 compared to RMB 2.53 in the previous year[50] Business Operations - The company operates in two main business areas: bio-composite fertilizers and elderly care services, with a focus on integrated elderly care management[6] - The company has multiple subsidiaries involved in bio-composite fertilizer research, elderly care services, and health consultation[9] - The company aims to expand its elderly care services across the country, integrating management and operational services[6] - The company is committed to developing new products in the bio-composite fertilizer sector to enhance crop growth[6] - Future strategies include potential construction of proprietary elderly care facilities or communities when appropriate[6] - The company is actively expanding its elderly care services, focusing on a light asset operation model and management consulting for other elderly care institutions[26] - The company has established a flagship store for assistive device rentals, enhancing accessibility for elderly customers[26] - The company is positioned to benefit from the increasing demand for elderly care services due to China's aging population, which reached 264 million people aged 60 and above[31] Market and Sales Strategy - The company experienced significant sales volume growth due to enhanced market sales management, despite rising production costs from raw material price increases[25] - The company plans to strengthen market sales management and adjust product structure to improve efficiency and market share in the compound fertilizer sector[29] - The company anticipates future growth in the compound fertilizer business despite rising raw material costs affecting profit margins[41] - The company plans to enhance marketing management and adjust product structure based on market demand, aiming to improve market share in the compound fertilizer sector[76] - The company aims to become one of the largest and most professional assistive device rental service providers in the Shanghai area[77] Financial Management - Administrative expenses for the year ended December 31, 2021, amounted to RMB 31,466,638, an increase of 33.00% compared to RMB 23,659,940 in 2020[46] - Research and development expenses decreased by 36.57% to RMB 3,498,792 for the year ended December 31, 2021, down from RMB 5,516,185 in 2020[48] - Financing costs surged by 234.19% to RMB 5,467,070 for the year ended December 31, 2021, compared to RMB 1,635,933 in 2020, primarily due to increased bank borrowings[49] - The total bank and other borrowings amounted to RMB 47,400,000 as of December 31, 2021, an increase from RMB 15,800,000 as of December 31, 2020, with a fixed annual interest rate of 5.84%[66] - The group utilized approximately RMB 40,400,000 of the bank credit granted, which was RMB 63,400,000 as of December 31, 2021, compared to RMB 21,600,000 the previous year[69] Governance and Compliance - The company maintains a board of directors consisting of three executive directors, three non-executive directors, and two independent non-executive directors[102] - The CEO, Ms. Sun Li, has extensive experience in investment banking and has held various senior positions in the industry since 1998[103] - The board of directors includes experienced professionals with backgrounds in finance, medicine, and management, enhancing the company's strategic decision-making capabilities[108] - The company has established effective internal controls and risk management procedures as part of its governance practices[144] - The audit committee held six meetings during the fiscal year and reviewed the financial reporting procedures of the group[135] - The company has adhered to the corporate governance code, except for one specific provision[141] - The company has implemented strict measures to manage insider information, with the chairman being the primary responsible person[157] Environmental and Social Responsibility - The company primarily engages in the production and sale of bio-composite fertilizers and provides elderly care and health services, with no significant environmental pollution issues reported in the elderly care sector[188] - In the bio-composite fertilizer business, the company emphasizes energy conservation and environmental protection, implementing clean production practices[188] - The company reported a total greenhouse gas emission of 5,679.78 tons of CO2, with a per product emission of 63.1 kg/t[196] - The total wastewater generated was 2,200 tons, with COD levels maintained at 0.294 tons, adhering to treatment agreements[196] - Solid waste management includes comprehensive utilization of general solid waste, achieving full recycling of waste generated[196] - The company encourages stakeholder engagement for continuous improvement in environmental, social, and governance (ESG) practices[187]

Financial Performance - For the nine months ended September 30, 2021, the group achieved a consolidated revenue of RMB 357,140,151, representing a year-on-year increase of 41.94% compared to RMB 251,610,019 for the same period in 2020[6] - The consolidated gross profit for the nine months ended September 30, 2021, was RMB 38,625,967, reflecting a year-on-year growth of 66.67% from RMB 23,175,044 in 2020[6] - The profit attributable to equity holders for the nine months ended September 30, 2021, was RMB 1,823,539, a significant increase of 111.46% compared to a loss of RMB 15,911,732 in the same period last year[6] - The earnings per share for the nine months ended September 30, 2021, was RMB 0.096, compared to a loss per share of RMB 0.839 for the same period in 2020[7] - The group reported a net profit of RMB 2,075,184 for the three months ended September 30, 2021, compared to a loss of RMB 16,656,589 in the same period last year[7] - The total operating revenue for the nine months ended September 30, 2021, was RMB 357,140,151, representing a year-on-year increase of 41.94% compared to RMB 251,610,019 in 2020[20] - The comprehensive gross profit for the same period was RMB 38,625,967, with a year-on-year growth of 66.67% from RMB 23,175,044 in 2020[20] - The comprehensive gross profit margin increased to 10.82%, up 1.61% from 9.21% in the previous year[20] Costs and Expenses - The sales and distribution costs amounted to RMB 17,036,248, reflecting an 18.49% increase from RMB 14,377,707 in 2020[20] - The group incurred financing costs of RMB 1,417,792 for the nine months ended September 30, 2021, compared to RMB 979,196 in the same period last year[7] - The financing costs rose by 44.79% to RMB 1,417,792 compared to RMB 979,196 in 2020[20] - The group’s research and administrative expenses decreased to RMB 18,774,490 for the nine months ended September 30, 2021, from RMB 22,011,858 in 2020[7] - Research and administrative expenses decreased by 14.71% to RMB 18,774,490 from RMB 22,011,858 in the previous year[20] Dividends and Shareholder Information - The group did not recommend the payment of any dividend for the nine months ended September 30, 2021[6] - As of September 30, 2021, major shareholders include Tianjin Economic and Technological Development Zone State-owned Assets Management Co., Ltd. with 182.5 million shares (9.63%) and Shenzhen Xiangyong Investment Co., Ltd. with 180 million shares (9.50%)[29] - The company’s director, Ms. Sun Li, holds 300 million shares, representing 15.83% of the issued share capital[26] - The company has not approved any new share option plans during the nine months ended September 30, 2021[37] - There were no share buybacks by the company or its subsidiaries during the nine months ended September 30, 2021[39] Corporate Governance - The company has complied with all provisions of the Corporate Governance Code except for the requirement that the roles of Chairman and CEO should be separate, which is currently not met[41] - The Audit Committee, consisting of three independent non-executive directors, reviewed the financial reporting procedures and the effectiveness of internal controls for the nine months ended September 30, 2021[36] Business Strategy and Market Trends - The company plans to enhance marketing management and adjust product structure to improve market share in response to the recovery of the compound fertilizer market[24] - The company aims to develop urban sludge treatment business leveraging its compound fertilizer production line, addressing environmental issues while creating value for shareholders[24] - The elderly population in China reached 264 million, accounting for 18.7% of the total population, indicating a deepening aging trend[25] - The company is focusing on a light asset operation model in the elderly care business, providing management consulting services to other elderly care institutions and real estate[25] - The company aims to become one of the largest and most professional assistive device rental service providers in the Shanghai area[25] - The brainwave detection business is developing slowly, but the technology has high advancement and market applicability, and the company is working to expand this business[25] - The company continues to strengthen its professional capabilities in elderly care through collaboration with internationally leading elderly care institutions[25] Executive Compensation - The basic salary of Executive Director Mr. Hao Zhihui was adjusted from RMB 502,500 to RMB 357,032 effective from May 1, 2021, until the end of his service period[34] Legal and Arbitration Matters - SJKGC's audited after-tax profit for the year ended December 31, 2017, was approximately $2.92 million, which did not meet the guaranteed profit of $5.39 million[32] - For the years ended December 31, 2018, and December 31, 2019, SJKGC's audited after-tax profits were $305,000 and $411,000, respectively, both of which did not meet the profit guarantees[33] - The company initiated arbitration against SJK in September 2019 and reached a settlement agreement in December 2020, which was revised in March 2021[33]

Financial Performance - For the six months ended June 30, 2021, the group achieved a consolidated revenue of RMB 241,786,926, representing a year-on-year growth of 46.30% compared to RMB 165,271,920 for the same period in 2020[6] - The consolidated gross profit for the same period was RMB 28,064,013, reflecting a year-on-year increase of 92.72% from RMB 14,562,341 in 2020[6] - The profit attributable to equity holders of the company was RMB 809,551, a significant turnaround from a loss of RMB 5,266,120 in the previous year, marking a growth of 115.37%[6] - The company reported earnings per share of RMB 0.043, compared to a loss per share of RMB 0.278 in the same period last year[6] - Total revenue for the six months ended June 30, 2021, was RMB 241,485,691, an increase from RMB 165,061,211 in the same period of 2020, representing a growth of approximately 46.2%[15] - The company incurred a loss before tax of RMB (1,876) for the six months ended June 30, 2021, improving from a loss of RMB (4,126) in the same period of 2020[23] - The operating gross profit margin improved to 11.61%, up from 8.81% in the previous year[39] Assets and Liabilities - Total assets as of June 30, 2021, amounted to RMB 437,579,799, an increase from RMB 392,918,507 as of December 31, 2020[8] - Current assets increased to RMB 301,330,703 from RMB 260,172,869 at the end of 2020[8] - Current liabilities rose to RMB 244,141,156, up from RMB 194,316,304 at the end of 2020[9] - Non-current assets totaled RMB 136,249,096, compared to RMB 132,745,638 at the end of 2020[8] - The company’s net asset value attributable to equity holders was RMB 155,788,802, slightly up from RMB 155,143,579 at the end of 2020[9] - As of June 30, 2021, the net accounts receivable amounted to RMB 56,332,343, an increase of 28.3% from RMB 43,892,498 as of December 31, 2020[27] - The accounts payable as of June 30, 2021, totaled RMB 69,842,562, which is a significant increase from RMB 43,747,089 as of December 31, 2020[29] - Other payables amounted to RMB 38,714,370 as of June 30, 2021, slightly down from RMB 39,615,529 as of December 31, 2020[30] Cash Flow - The company reported a net cash flow from operating activities of RMB 17,966,948 for the six months ended June 30, 2021, compared to a net cash outflow of RMB 10,036,490 in the same period of 2020[11] - The cash and bank balances at the end of the period increased to RMB 26,789,577 from RMB 11,769,699 at the end of the same period in 2020[11] - The company reported a net cash outflow from investing activities of RMB (1,209,366) for the six months ended June 30, 2021, compared to RMB (212,492) in the same period of 2020[11] - The company reported financing cash outflows of RMB (3,500,000) for the six months ended June 30, 2021, compared to RMB (2,200,000) in the same period of 2020[11] Expenses - Sales and distribution costs increased by 40.45% to RMB 13,117,605, compared to RMB 9,339,918 in the prior year, primarily due to increased marketing efforts in a competitive market[40] - Research and administrative expenses rose by 4.13% to RMB 14,279,494, compared to RMB 13,713,407 in the previous year[41] - Financing costs increased by 10.82% to RMB 735,141, up from RMB 663,362 in the same period last year[42] Dividends and Shareholder Information - The company did not recommend the payment of a dividend for the six months ended June 30, 2021[6] - The company did not recommend an interim dividend for the six months ended June 30, 2021, compared to no dividend declared for the same period in 2020[34] - The board decided not to declare any interim dividend for the six months ending June 30, 2021[68] Business Strategy and Market Position - The company reported a significant increase in sales volume of compound fertilizers, despite a decline in overall profit margins due to rising raw material costs[38] - The company is focusing on the development of its sludge treatment business in Guangdong, which has become an important profit growth point[38] - The company is actively adjusting its product structure in response to market competition and price sensitivity among farmers[38] - The company plans to enhance marketing management and adjust product structure to improve market share in response to the recovery of the compound fertilizer market[49] - The aging population in China, with 264 million people aged 60 and above, presents significant growth opportunities in the elder care services sector, which the company aims to capitalize on through management consulting services and partnerships with leading institutions[50] Governance and Compliance - The company has established an audit committee to oversee financial reporting procedures and ensure effective internal controls and risk assessments[61] - The company’s audit committee, consisting of three independent non-executive directors, reviewed the interim results and report for the six months ending June 30, 2021[62] - The company emphasizes effective board governance and transparency to all shareholders[67] - There were no known violations of the trading code by directors during the review period[65] - As of June 30, 2021, there were no known conflicts of interest or competition between the company's directors, supervisors, or management shareholders and the company's business[60] Management and Personnel - The company’s executive director's salary was adjusted from RMB 502,500 to RMB 357,032 effective May 1, 2021, following the retirement of Mr. Hao Zhihui[59] - The company is currently seeking candidates for the CEO position to comply with the corporate governance code[67] - The CEO position is currently held by the chairperson, which does not meet the requirement of separating the roles as per the corporate governance code[67] - The company did not establish any arrangements allowing directors or supervisors to profit from purchasing company shares during the review period[53] - The company has not entered into any management contracts for overall business or any major business operations during the first half of 2021[64] - The company has not approved any new share option plans during the period ending June 30, 2021[63] Capital Commitments - The company has no significant capital commitments not provided for in the financial statements as of June 30, 2021[32] - The company has provided guarantees for bank financing of certain subsidiaries amounting to RMB 0 as of June 30, 2021, down from RMB 10,893,750 in June 2020[33] Historical Performance - SJKGC's audited after-tax profit for the year ending December 31, 2017, was approximately USD 2,922,000, which did not meet the guaranteed profit of USD 5,390,000[57] - For the year ending December 31, 2018, SJKGC's audited after-tax profit was USD 305,000, and for 2019, it was USD 411,000, both failing to meet the profit guarantee[58]

Financial Performance - For the three months ended March 31, 2021, the group achieved a consolidated revenue of RMB 124,407,625, representing an increase of 81.55% compared to RMB 68,523,880 for the same period last year[6] - The consolidated gross profit for the same period was RMB 13,722,640, reflecting a significant increase of 253.42% from RMB 3,882,817 in the previous year[6] - The loss attributable to equity holders of the company was RMB 165,625, a decrease of 97.04% compared to a loss of RMB 5,591,384 in the same period last year[6] - The basic loss per share for the period was RMB 0.009, compared to RMB 0.295 for the same period last year[6] - The group reported a pre-tax loss of RMB 1,493,248, significantly improved from a loss of RMB 5,945,839 in the previous year[7] - The total sales cost for the period was RMB 110,684,985, compared to RMB 64,641,063 in the previous year[7] - The research and development and administrative expenses amounted to RMB 7,455,064, compared to RMB 5,568,630 in the previous year[7] - The comprehensive gross profit for the same period was RMB 13,722,640, which is a 253.42% increase from RMB 3,882,817 year-on-year, resulting in a gross margin of 11.03%, up by 5.36% from 5.67%[18] Revenue Sources - The revenue from fertilizer products was RMB 124,379,590, up from RMB 68,473,752 in the previous year, while revenue from elderly care and health services was RMB 28,035, down from RMB 50,128[9] Dividends and Shareholder Returns - The group did not recommend the payment of any dividend for the three months ended March 31, 2021[6] - The company does not recommend the payment of an interim dividend for the three months ended March 31, 2021, consistent with no dividend declared in the same period last year[15] Business Strategy and Development - The company is actively expanding its biocomposite fertilizer business and elderly care services, focusing on the integration of medical and elderly care services[17] - The company plans to adopt new marketing strategies to promote its new series of fertilizers, aiming for sustainable development in the biocomposite fertilizer sector[22] - The company is experiencing slow development in its EEG detection business but is actively seeking new partnerships to enhance growth in this area[23] - The company is committed to improving its elderly care services by developing or investing in high-end elderly care institutions and enhancing its professional capabilities in elderly care[23] - The company is focused on biomedical engineering and aims to enhance its market presence[38] - The company plans to continue its research and development efforts in new products and technologies[38] - The company is exploring potential market expansions to increase its competitive edge[38] - The company emphasizes the importance of strategic partnerships and collaborations in its growth strategy[38] - The company aims to improve operational efficiency through innovative practices[38] - The company is dedicated to maintaining high standards of corporate governance[38] - The company is focused on enhancing shareholder value through sustainable growth initiatives[38] Financial Liabilities and Governance - The company faces a contingent liability of RMB 3,000,000 related to bank loans secured by its subsidiaries as of March 31, 2021, compared to zero as of December 31, 2020[19] - The company’s treasury policy involves bank borrowings settled in RMB, with cash balances deposited in licensed banks in China[21] - The company has committed to adhering to the corporate governance principles outlined in the GEM Listing Rules[37] - The company did not establish any arrangements allowing directors or supervisors to profit from purchasing company shares during the review period[26] - The company has not approved any new share option plans during the period ending March 31, 2021[34] - There were no management contracts signed for overall business or any major business during the period ending March 31, 2021[35] - The company has not disclosed any competitive interests or conflicts of interest involving its directors or management during the review period[32] Shareholder Information - As of March 31, 2021, major shareholders include Tianjin TEDA International Entrepreneurship Center with 182,500,000 shares (9.63%), Shenzhen Xiangyong Investment Co., Ltd. with 180,000,000 shares (9.50%), and Shandong Zhinong Fertilizer Co., Ltd. with 180,000,000 shares (9.50%)[27] Audit and Reporting - The company’s audit committee, consisting of three independent non-executive directors, reviewed the financial results for the first quarter ending March 31, 2021[33] - The report will be available for at least seven days on the GEM website and the company's website[38] - The company is committed to transparency and will publish its announcements on its official platforms[38]

Company Overview - The registered capital of Tianjin TEDA Biomedical Engineering Company Limited is RMB 189.045 million[6]. - Tianjin TEDA Biomedical Engineering Company Limited was officially listed on the GEM of the Hong Kong Stock Exchange on June 18, 2002[6]. - The company operates in two main business areas: bio-composite fertilizers and elderly care services, focusing on the needs of disabled and cognitively impaired individuals[6]. - The group structure includes multiple subsidiaries dedicated to various aspects of biomedical engineering and elderly care services[8]. Financial Performance - Revenue for 2020 was RMB 369,355 thousand, showing a slight increase from RMB 358,752 thousand in 2019[13]. - Gross profit for 2020 was RMB 40,392 thousand, with a gross margin of 10.94%, up from 9.75% in 2019[13]. - The company reported a loss attributable to shareholders of RMB 47,998 thousand in 2020, an improvement from a loss of RMB 84,622 thousand in 2019[13]. - Total assets as of December 31, 2020, were RMB 392,919 thousand, compared to RMB 361,913 thousand in 2019[13]. - Total liabilities increased to RMB 237,775 thousand in 2020 from RMB 156,406 thousand in 2019[13]. - The company's revenue for the year ended December 31, 2020, was RMB 369,355,184, representing a year-on-year increase of 2.96%[20]. - The comprehensive gross profit margin increased by 11.79% to RMB 40,391,685 compared to the previous year[20]. - The loss attributable to shareholders was RMB 47,998,435, with a loss per share of RMB 2.53, a decrease of 43.40% from the previous year's loss per share of RMB 4.47[20]. Business Operations - The bio-composite fertilizer business includes a range of products aimed at promoting balanced growth of various crops[6]. - The company has completed acquisitions to utilize exclusive EEG quantitative detection technology for diagnosing neurological and psychological disorders[6]. - The company is expanding its elderly care services across the country, integrating resources and providing management and consulting services[6]. - The company is also involved in health food research and development through its subsidiary Tianjin Alpha Health Products Co., Ltd.[8]. - The company has initiated an intelligent upgrade of manufacturing processes, enhancing production efficiency and reducing energy consumption[16]. - The company plans to expand its rental business for rehabilitation aids, capitalizing on government policies promoting this sector[16]. - The company aims to enhance its service quality in elderly care through standardized service systems and operational management[16]. - The company is focusing on product structure adjustments and manufacturing process upgrades to promote sustainable development in its compound fertilizer business[26]. - The company aims to improve the efficiency of fertilizer use and promote the development of specialized fertilizers to meet changing market demands[21]. Environmental and Social Responsibility - The company has established comprehensive waste management practices, achieving full utilization of solid waste generated[141]. - The company adheres to strict emission standards, including air quality standards of ≤20 mg/m³ for particulate matter and ≤100 mg/m³ for SO2[143]. - The company has eliminated hazardous waste management status due to low generation of hazardous waste and internal recycling practices[143]. - The company integrates environmental, social, and governance (ESG) responsibilities into its core business operations[137]. - The company has implemented a corporate social responsibility strategy focusing on employee rights, consumer care, environmental protection, and social responsibility[137]. Governance and Compliance - The company emphasizes the importance of accurate and complete information in its financial reporting and corporate governance[2]. - The board of directors includes three executive directors, three non-executive directors, and two independent non-executive directors, maintaining a balanced governance structure[66]. - The company has a strong governance structure with experienced independent directors, enhancing its oversight capabilities[84]. - The audit committee held six meetings during the fiscal year to review the financial reporting procedures and the effectiveness of internal controls[94]. - The company has complied with all provisions of the corporate governance code except for one specific provision during the review year[100]. - The company emphasizes high transparency and timely disclosure of relevant information to shareholders through various formal communication channels[136]. Employee Management - The total number of employees is 390, with 75% male and 25% female[190]. - Employee turnover rate is 14.9%, with a breakdown of 10.5% for male and 4.4% for female employees[193]. - The company emphasizes occupational health and safety, providing safety training and regular health check-ups for employees[197]. - The total training hours for the year amounted to 1,736 hours, with 103 employees participating in various training programs[198]. - The average training hours per employee was 4.5 hours, with a training participation rate of 26%[199]. Market and Product Development - The fertilizer industry is undergoing unprecedented innovation, with new formulations and technologies emerging, presenting opportunities for integration and development[21]. - The company has successfully developed eight new series of fertilizers, including water-soluble fertilizers and microbial fertilizers, to enhance product targeting and effectiveness[48]. - The company plans to adopt new marketing strategies to actively promote its new fertilizer series, aiming for sustainable and healthy development of its compound fertilizer business[48]. - The company is focused on expanding its market presence and enhancing its product offerings through strategic investments and partnerships[70].

Financial Performance - For the nine months ended September 30, 2020, the group achieved a consolidated revenue of RMB 251,610,019, a decrease of 11.56% compared to RMB 284,484,546 for the same period last year[4] - The consolidated gross profit for the same period was RMB 23,175,044, down 24.87% from RMB 30,848,000 year-on-year[4] - The loss attributable to equity holders of the company was RMB 15,911,732, an increase of 12.38% from a loss of RMB 14,158,779 in the previous year[4] - The basic loss per share for the nine months was RMB 0.839, compared to RMB 0.75 for the same period last year[5] - The group reported a pre-tax loss of RMB 16,295,575 for the nine months, compared to a loss of RMB 13,584,656 in the previous year[5] - The income tax expense for the nine months was RMB 361,014, compared to an income tax credit of RMB 36,006 in the previous year[11] - The consolidated gross profit for the same period was RMB 23,175,044, down 24.87% from RMB 30,848,000 in 2019, resulting in a gross profit margin of 9.21%, a decline of 1.64% year-on-year[19] - The sales and distribution costs increased by 6.72% to RMB 14,377,707 from RMB 13,472,729 in the previous year[19] - Research and administrative expenses decreased by 24.13% to RMB 22,011,858 compared to RMB 29,011,540 in 2019[19] - Financing costs significantly reduced by 60.74% to RMB 979,196 from RMB 2,494,206 in the previous year[19] Dividend and Shareholder Information - The company did not recommend the payment of any dividend for the nine months ended September 30, 2020[5] - The company does not recommend the payment of an interim dividend for the nine months ended September 30, 2020, compared to no dividend in the same period of 2019[15] - As of September 30, 2020, the company’s major shareholders include Tianjin TEDA International Entrepreneurship Center with 182,500,000 shares (9.63%) and Shenzhen Xiangyong Investment Co., Ltd. with 180,000,000 shares (9.50%)[27] Business Operations and Strategy - The company is actively expanding its composite fertilizer business and focusing on the elderly care and health services sector, particularly for the disabled and dementia patients[18] - The company anticipates an increase in fertilizer demand due to rising prices of agricultural products and the recovery of the composite fertilizer industry[22] - The company aims to enhance the management level of integrated medical and elderly care institutions, aligning with national policies and social economic development trends[23] - The EEG detection business has faced slow development due to various factors, including the impact of the COVID-19 pandemic, but the company is working to expand this business as a profit growth point[23] - The company is actively working to build an integrated medical and elderly care industry platform to enhance its core competitiveness in this field[23] - The company’s EEG detection technology is noted for its advanced technical capabilities and market applicability, indicating potential for future growth[23] Financial Guarantees and Liabilities - The contingent liabilities related to bank loans provided as guarantees amounted to RMB 9,893,750 as of September 30, 2020, down from RMB 15,000,000 at the end of 2019[20] - The company has a profit guarantee agreement with SJKGC, which stipulates a minimum audited after-tax profit of $5,390,000 for the fiscal years 2017, 2018, and 2019[29] - For the fiscal year ending December 31, 2017, SJKGC reported an audited after-tax profit of approximately $2,922,000, failing to meet the profit guarantee[30] - For the fiscal years ending December 31, 2018 and 2019, SJKGC reported after-tax profits of $305,000 and $411,000 respectively, both below the guaranteed amount[31] - The arbitration process regarding the profit guarantee with SJK is ongoing, initiated on September 3, 2019[31] Corporate Governance - The company has adhered to the corporate governance code, except for the requirement that the roles of chairman and CEO should be separate[37] - The current CEO also serves as the chairman, which the board believes is in the company's best interest for maintaining policy continuity and operational stability[38] - The company is actively seeking candidates for the CEO position to comply with corporate governance transparency and independence[38] - The audit committee has reviewed the group's financial reporting procedures for the nine months ending September 30, 2020[33] - No new share option plans were approved during the period ending September 30, 2020[34] - The company did not enter into any management contracts for overall business or any major business during the period ending September 30, 2020[35] - There were no repurchases of shares during the review period, and the company or its subsidiaries did not buy, sell, or redeem any shares during the period ending September 30, 2020[36] Reporting and Transparency - The report will be available on the GEM website and the company's website for at least seven days from the publication date[40]

Financial Performance - For the six months ended June 30, 2020, the group achieved a consolidated revenue of RMB 165,271,920, a decrease of 17.68% compared to RMB 200,755,549 for the same period last year[5] - The consolidated gross profit for the same period was RMB 14,562,341, down 42.78% from RMB 25,449,134 year-on-year[5] - The loss attributable to equity holders of the company was RMB 5,266,120, a reduction of 22.95% compared to a loss of RMB 6,835,079 in the previous year[5] - The company reported a basic loss per share of RMB 0.278, compared to RMB 0.361 for the same period last year[5] - Revenue from fertilizer products for the six months ended June 30, 2020, was RMB 165,061,211, a decrease from RMB 197,750,732 in the same period of 2019, reflecting a decline of approximately 16.6%[10] - The compound fertilizer business experienced a revenue decline of 16.93% year-on-year due to the impact of COVID-19 and adverse weather conditions[32] - The group's sales and distribution costs for the six months ended June 30, 2020, were RMB 9,339,918, a decrease of 3.07% compared to RMB 9,636,064 for the same period in 2019[33] - Research and administrative expenses for the same period were RMB 13,713,407, down 32.93% from RMB 20,445,160 in 2019[34] Assets and Liabilities - The total assets of the company as of June 30, 2020, amounted to RMB 394,340,491, compared to RMB 361,912,836 as of December 31, 2019[8] - Current liabilities totaled RMB 130,009,335, a decrease from RMB 156,405,901 at the end of the previous year[8] - The net asset value of the company was RMB 264,331,156, an increase from RMB 205,506,935 at the end of the previous year[8] - The net trade receivables as of June 30, 2020, amounted to RMB 68,115,734, up from RMB 60,340,201 as of December 31, 2019, indicating a growth in receivables[22] - Other receivables, net of bad debt provision, increased to RMB 29,769,410 as of June 30, 2020, compared to RMB 12,910,478 as of December 31, 2019[23] - Trade payables totaled RMB 22,365,796 as of June 30, 2020, up from RMB 19,283,679 as of December 31, 2019[24] - Other payables decreased to RMB 33,949,769 as of June 30, 2020, from RMB 38,262,444 as of December 31, 2019[25] Cash Flow and Financing - The company reported a net cash outflow from operating activities of RMB (10,036,490) for the six months ended June 30, 2020, compared to RMB (24,821,594) in the same period of 2019, indicating a significant improvement[9] - The financing cash outflow for the six months ended June 30, 2020, was RMB (2,200,000), slightly improved from RMB (2,500,000) in the same period of 2019[9] - The company’s cash and bank balances decreased to RMB 11,769,699 as of June 30, 2020, from RMB 15,288,638 as of June 30, 2019[9] - The company’s interest expense on bank loans for the six months ended June 30, 2020, was RMB 663,362, down from RMB 1,685,338 in the same period of 2019, showing a reduction in financing costs[11] - Financing costs decreased by 60.64% to RMB 663,362 from RMB 1,685,338 in the previous year[35] Dividends and Shareholder Information - The company did not recommend the payment of any dividend for the six months ended June 30, 2020[5] - The company did not recommend an interim dividend for the six months ended June 30, 2020, compared to no dividend in the same period of 2019[28] - Major shareholders as of June 30, 2020, include Tianjin TEDA International Venture Capital Center with 182,500,000 shares (9.63%), Shenzhen Xiangyong Investment Co., Ltd. with 180,000,000 shares (9.50%), and Shandong Zhinong Fertilizer Co., Ltd. with 180,000,000 shares (9.50%) [46] Corporate Governance and Compliance - The company did not approve any new share option schemes during the period ended June 30, 2020 [54] - The company has not entered into any management or administrative contracts for its overall business during the first half of 2020 [55] - The company has adopted a code of conduct for securities trading that is not less stringent than the GEM Listing Rules [56] - No shares were repurchased by the company or its subsidiaries during the review period [57] - The company has complied with all provisions of the Corporate Governance Code except for the requirement that the roles of the Chairman and CEO should be separate [58] - The company is in the process of selecting candidates for the CEO position to enhance corporate governance transparency and independence [59] Future Plans and Strategic Focus - The company is focusing on the development of assistive device rental services as a key profit growth point in the elderly care business[31] - The company is actively seeking new partnerships to expand its EEG testing business despite slow growth due to COVID-19[31] - The company is upgrading its fertilizer production equipment and processes to develop differentiated, high-quality fertilizers to meet agricultural production needs[30] - The group plans to focus on the development of organic fertilizers, which are expected to enhance resource utilization and optimize the environment[41] - The group aims to develop its own high-end elderly care institutions in the future while continuing to provide management consulting services to other elderly care facilities[42] - The quantitative EEG detection technology is expected to become a profit growth point for the company, despite its slow development due to various factors[42] Contingent Liabilities - The group has a contingent liability of RMB 10,893,750 related to bank loans secured by its subsidiaries, down from RMB 15,000,000 at the end of 2019[39]

Financial Performance - For the three months ended March 31, 2020, the group achieved a consolidated revenue of RMB 68,523,880, a decrease of 21.82% compared to RMB 87,652,324 for the same period last year[4] - The consolidated gross profit for the same period was RMB 3,882,817, representing a decrease of 64.65% from RMB 10,982,595 year-on-year[4] - The loss attributable to equity holders of the company was RMB 5,591,384, an increase of 74.22% compared to a loss of RMB 3,209,427 in the previous year, with a loss per share of RMB 0.295 compared to RMB 0.169 last year[4] - The group reported a pre-tax loss of RMB 5,945,839 for the three months ended March 31, 2020, compared to a pre-tax loss of RMB 3,122,862 in the same period last year[5] - Research and administrative expenses for the period were RMB 5,568,630, down from RMB 9,099,684 in the previous year[5] - Financing costs decreased to RMB 418,031 from RMB 928,062 year-on-year[5] - The group did not incur any income tax expenses for the three months ended March 31, 2020, compared to RMB 62,248 in the previous year[9] Dividend Policy - The company did not recommend the payment of a dividend for the three months ended March 31, 2020[4] - The company does not recommend the payment of an interim dividend for the three months ended March 31, 2020, consistent with no dividend in the first quarter of 2019[13] Business Operations - The company is actively expanding its elderly care services, focusing on management consulting for other elderly care institutions and properties, and plans to develop its own high-end elderly care facilities in the future[21] - The company is also working on enhancing its quantitative EEG detection business, which has broad application prospects despite slow development due to various factors[21] - The company has taken measures to resume production and operations in response to the COVID-19 pandemic, with fertilizer sales gradually increasing since February 2020[20] - The company is focusing on green development in the fertilizer industry, aiming to adjust its product structure and reduce resource consumption while promoting sustainable development[20] Shareholder Information - As of March 31, 2020, Ms. Sun Li holds 300,000,000 shares, representing 15.83% of the issued share capital[23] - Major shareholders include Tianjin TEDA International Entrepreneurship Center with 182,500,000 shares (9.63%), Shenzhen Xiangyong Investment Co., Ltd. with 180,000,000 shares (9.50%), and Shandong Zhinong Fertilizer Co., Ltd. with 180,000,000 shares (9.50%)[29] - No other individuals, apart from those disclosed, are known to hold 5% or more of the issued share capital[30] Corporate Governance - The company has confirmed that there are no competitive interests or conflicts of interest involving its directors or management[34] - The audit committee consists of three independent non-executive directors, with Mr. Li Xudong serving as the chairman due to his professional accounting qualifications and auditing experience[35] - The company has adhered to the corporate governance principles outlined in the GEM Listing Rules, emphasizing effective board establishment, sound internal controls, and transparency to all shareholders during the review period[39] Legal and Compliance - The arbitration process regarding the profit guarantee with SJK is ongoing, initiated due to non-compliance with the agreement terms[33] - The company has not established any arrangements that would allow directors or their family members to profit from purchasing company shares during the review period[25] - No new share option plans were approved during the period ending March 31, 2020[36] - There were no management contracts signed for overall business or any major business administrative work during the period ending March 31, 2020[37] - The company did not redeem any of its shares during the review period, nor did it or any of its subsidiaries purchase, sell, or redeem any shares of the company during the period ending March 31, 2020[38] Financial Guarantees - The company has provided guarantees for bank loans of its subsidiaries, with contingent liabilities amounting to RMB 11,392,158.37 as of March 31, 2020, down from RMB 15,000,000 at the end of 2019[17] Currency Risk - The company faces minimal foreign currency risk as all sales and payments to suppliers are settled in RMB[18]