Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of RMB 263,069,000, a decrease of 9.0% from RMB 289,073,000 in the previous year[4]. - The gross profit for the same period was RMB 108,400,000, down 14.9% from RMB 127,365,000 in 2023[4]. - The company incurred a net loss of RMB 56,889,000, compared to a net loss of RMB 19,241,000 in the prior year, representing an increase in losses of 195.5%[5]. - Basic and diluted loss per share for the year was RMB 0.294, compared to RMB 0.080 in the previous year[4]. - The company's operating revenue for the year was approximately RMB 263.1 million, a decrease of about 9.0% compared to RMB 289.1 million in the previous year[54]. - Gross profit for the year was approximately RMB 108.4 million, down about 14.9% from RMB 127.4 million in the previous year, with a gross margin of approximately 41.2% compared to 44.1% in the previous year[55]. - The company reported a loss attributable to equity holders of the parent of RMB 42,532 thousand in 2024, compared to a loss of RMB 11,648 thousand in 2023, indicating a significant increase in losses[38]. Assets and Liabilities - Total assets decreased to RMB 477,372,000 from RMB 563,515,000, reflecting a decline of 15.3%[6]. - Current liabilities exceeded current assets by approximately RMB 7,490,000 as of December 31, 2024[13]. - The group's cash and cash equivalents amounted to approximately RMB 68,213,000, while total bank borrowings were approximately RMB 143,665,000[13]. - The net current liabilities as of December 31, 2024, were approximately RMB 7,490,000, compared to RMB 29,393,000 in 2023, indicating a significant improvement in liquidity[42]. - Trade receivables decreased from RMB 183,300 thousand in 2023 to RMB 127,845 thousand in 2024, a reduction of approximately 30.2%[39]. - Trade payables decreased from RMB 111,540 thousand in 2023 to RMB 87,108 thousand in 2024, a decrease of approximately 22%[41]. Cash Flow and Financing - The company's cash and cash equivalents increased to RMB 68,213,000 from RMB 63,410,000, showing a growth of 12.7%[6]. - The group has secured bank financing approval of approximately RMB 100,000,000, which can be drawn as needed[13]. - The group has approximately RMB 20,000,000 of undrawn bank financing available for additional loans[13]. - The net debt rose to RMB 80,008,000 in 2024, compared to RMB 79,307,000 in 2023, indicating a slight increase of about 0.9%[66]. - The capital debt ratio increased to 46% in 2024 from 34% in 2023, showing a significant rise of 35.3%[66]. Research and Development - Research and development expenses were RMB 33,418,000, slightly down from RMB 35,806,000, indicating a reduction of 6.7%[4]. - The company's R&D investment for the year was approximately RMB 33.4 million, with several new diagnostic systems and products approved for market[46]. - The company aims to enhance its product pipeline by focusing on flow cytometry instruments and reagents, chemiluminescence instruments and reagents, and molecular diagnostic products, with several projects currently in clinical trial stages[51]. - The company has registered or applied for registration of 9 new products, including the adiponectin assay kit, indicating ongoing innovation in product offerings[46]. Market and Competition - Approximately 91% of the group's revenue for the year came from customers located in mainland China[20]. - The IVD industry is experiencing intensified competition, with both domestic and international players vying for market share, complicating market expansion efforts for the company[48]. - The company plans to strengthen its market presence in the grassroots healthcare sector, leveraging its product cost-performance advantages and localized service capabilities[63]. - The company aims to expand its international market presence, particularly in Southeast Asia, Africa, and Latin America, to increase product recognition and market share[65]. Corporate Governance - The company has complied with all applicable code provisions of the Corporate Governance Code, except for the establishment of an internal audit function[88]. - The audit committee, consisting of four independent non-executive directors, has reviewed the audited consolidated results and internal control systems[86]. - The company announced that it failed to comply with the GEM Listing Rules regarding related party transactions, with total sales of reagent products and procurement of testing reagents and consumables amounting to approximately RMB 16.99 million (approximately HKD 18.69 million) for the year ended December 31, 2022[89]. Employee and Operational Efficiency - Employee benefits expenses rose to RMB 102,930 thousand in 2024, up from RMB 99,218 thousand in 2023, an increase of 2.7%[27]. - The total employee cost for the year was approximately RMB 103,000,000, up from RMB 99,000,000 in the previous year, representing an increase of about 4.0%[73]. - The company employed a total of 499 full-time employees as of December 31, 2024, down from 537 in 2023, indicating a reduction in workforce[73]. - The company is actively pursuing strategic mergers and acquisitions to optimize resource allocation and enhance overall strength in response to industry consolidation trends[63]. - The company will continue to optimize internal management processes and improve operational efficiency while controlling costs[65].

Financial Performance - The company reported a significant increase in revenue, achieving a total of RMB 500 million for the first half of 2024, representing a 25% year-over-year growth[10]. - The company's main business revenue for the six months ended June 30, 2024, was approximately RMB 133.8 million, a decrease of about 3.8% compared to RMB 139.1 million for the same period in 2023[16]. - For the six months ended June 30, 2024, the company's revenue was RMB 133,828 thousand, a decrease of 3% from RMB 139,146 thousand in the same period of 2023[37]. - The gross profit for the reporting period was approximately RMB 58.5 million, a decrease of about 12.3% from RMB 66.7 million in the same period last year, resulting in a gross margin of approximately 44%[18]. - The gross profit for the same period was RMB 58,531 thousand, down 12% from RMB 66,676 thousand in 2023[37]. - The company reported a loss of approximately RMB 18.3 million for the reporting period, compared to a loss of approximately RMB 8 million in the same period last year[23]. - The company reported a loss before tax of RMB 16,145 thousand, compared to a loss of RMB 5,810 thousand in the same period last year[39]. - The net loss for the period was RMB 18,314 thousand, which is a 129% increase from RMB 8,011 thousand in 2023[39]. - The net cash flow used in operating activities for the six months ended June 30, 2024, was RMB (28,956,000), compared to RMB (21,278,000) for the same period in 2023[47]. Market and Business Outlook - The management has provided a positive outlook for the second half of 2024, projecting a revenue growth of 20% to 30% compared to the first half[10]. - The IVD market in China was valued at USD 5.855 billion in 2023, accounting for 6% of the global IVD market, with a projected CAGR of approximately 6% from 2023 to 2028[24]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its product offerings[10]. - The company aims to enhance its future financial performance and profitability through strategic acquisitions of suitable target companies[32]. Research and Development - The company is actively investing in R&D, with a budget allocation of RMB 50 million for the development of new diagnostic reagents and technologies[10]. - Research and development expenses increased by approximately 5.6% to RMB 16.9 million, compared to RMB 16 million in the same period last year, with 50 Class II products completed for continued registration[21]. - The company’s research and development expenses for the six months ended June 30, 2024, were RMB 296,000, consistent with the same period in 2023[60]. Operational Changes - The company plans to enhance its online sales platform to improve customer engagement and streamline order processing[10]. - The company plans to enhance traditional biochemical diagnostic product quality and increase sales to minimize the impact of procurement price reductions[24]. - The company is actively investing in R&D, with a budget allocation of RMB 50 million for the development of new diagnostic reagents and technologies[10]. - The company has reported a gross margin of 60%, indicating strong profitability in its product offerings[10]. Employee and Management Information - The total employee cost for the six months was approximately RMB 52,100 thousand, an increase of 9% compared to RMB 47,700 thousand in the previous year[33]. - The company employed a total of 554 full-time employees as of June 30, 2024, an increase from 530 employees a year earlier[33]. - The total short-term employee benefits for the first half of 2024 amounted to RMB 2,809,000, a decrease of 4.24% compared to RMB 2,933,000 in 2023[81]. - The total remuneration for key management personnel for the first half of 2024 was RMB 3,033,000, down 3.56% from RMB 3,145,000 in 2023[81]. Financial Position - The company's cash and bank balances decreased to RMB 35.1 million from RMB 63.4 million as of December 31, 2023[26]. - The net debt increased to RMB 106.2 million, with a capital debt ratio of 50% compared to 34% at the end of 2023[26]. - The total current assets were RMB 323,787 thousand, a decrease from RMB 350,140 thousand at the end of 2023[43]. - The company’s total equity decreased to RMB 213,067,000 as of June 30, 2024, from RMB 231,404,000 as of December 31, 2023[44]. - The total current liabilities decreased to RMB 311,085,000 as of June 30, 2024, from RMB 320,747,000 as of December 31, 2023, reflecting a reduction of approximately 3.1%[44]. Shareholder Information - As of June 30, 2024, Mr. Chen Peng held 11,330,334 shares, representing 14.09% of the domestic shares and 7.83% of the total registered capital[84]. - Beijing Pusai Asset Management Co., Ltd. held 31,308,576 domestic shares, accounting for 38.93% of the domestic shares and 21.64% of the total registered capital[86]. - The company’s major shareholder, Hong Kong Zhixin Investment Co., Ltd., held 27,256,143 H shares, representing 42.40% of the H shares and 18.84% of the total registered capital[86]. - The total number of shares held by Mr. Chen Zhengyong was 10,000,000, representing 12.43% of the domestic shares and 6.91% of the total registered capital[84]. Corporate Governance - The company has established an audit committee to review and supervise financial reporting procedures and internal control systems, consisting of four independent non-executive directors[98]. - The company has complied with all applicable code provisions of the Corporate Governance Code, except for the establishment of an internal audit function, which is currently deemed unnecessary due to the group's scale and operational structure[99]. - The company confirmed that all directors have adhered to the established code of conduct for securities transactions during the reporting period[95]. - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the six months ended June 30, 2024[94].

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 133,828,000, a decrease of 3% from RMB 139,146,000 in the same period of 2023[2] - The gross profit for the same period was RMB 58,531,000, down 12% from RMB 66,676,000 year-on-year[2] - Operating loss increased to RMB 11,951,000 compared to a loss of RMB 5,490,000 in the prior year[2] - The net loss for the period was RMB 18,314,000, which is a significant increase from RMB 8,011,000 in the previous year[2] - Basic and diluted loss per share was RMB 0.091, compared to RMB 0.037 in the same period last year[2] - The total comprehensive loss for the six months ended June 30, 2024, was RMB (18,337,000), compared to RMB (7,956,000) for the same period in 2023, reflecting an increase in losses[6] - The company reported a loss of approximately RMB 18.3 million for the reporting period, compared to a loss of RMB 8 million in the same period last year[37] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 538,339,000, a slight decrease from RMB 563,151,000 as of December 31, 2023[4] - Current liabilities totaled RMB 311,085,000, down from RMB 320,747,000 at the end of 2023[5] - The company’s cash and cash equivalents decreased to RMB 35,076,000 from RMB 63,410,000 at the end of the previous year[4] - Non-current assets amounted to RMB 212,552,000, slightly down from RMB 213,111,000 at the end of 2023[4] - The company reported a total equity of RMB 213,067,000, down from RMB 231,404,000 at the end of the previous year[5] - Trade receivables at the end of the reporting period amounted to RMB 177,518,000, a decrease from RMB 179,798,000 at the end of 2023[21] - Trade payables at the end of the reporting period were RMB 108,517,000, down from RMB 111,540,000 at the end of 2023[22] - The company’s bank loans totaled RMB 141,312,000, a slight decrease from RMB 142,717,000 in the previous year[23] - The company has a guarantee of RMB 6,000,000 for a loan granted to a subsidiary, down from RMB 10,000,000 at the end of 2023[25] Cash Flow - The net cash flow used in operating activities for the six months ended June 30, 2024, was RMB (28,956,000), compared to RMB (21,278,000) for the same period in 2023, indicating a worsening cash flow situation[7] - The company reported a net cash outflow from investing activities of RMB (927,000) for the six months ended June 30, 2024, compared to RMB (2,663,000) in the same period of 2023[7] - The company's cash and bank balances decreased to RMB 35.1 million from RMB 63.4 million as of December 31, 2023[40] Expenses - The cost of goods sold and services provided for the six months ended June 30, 2024, was RMB 75,297,000, an increase from RMB 72,470,000 in the same period of 2023[15] - Total expenses for the period were RMB 2,212,000, compared to RMB 1,841,000 for the same period in 2023, representing an increase of approximately 20.2%[18] - The total tax expense for the period was RMB 2,169,000, slightly down from RMB 2,201,000 in the previous year[18] Employee and Workforce - As of June 30, 2024, the total employee cost for the group was approximately RMB 52.1 million, an increase from RMB 47.7 million in the same period last year, reflecting a growth of 7%[47] - The group employed a total of 554 full-time employees as of June 30, 2024, compared to 530 employees a year earlier, indicating a growth in workforce of approximately 4.5%[47] - The company emphasizes the importance of employee training and regularly reviews its compensation policies to maintain competitive salary levels[47] - The board believes that employees are one of the company's most important assets, contributing significantly to its success[47] Research and Development - Research and development expenses increased to approximately RMB 16.9 million, a rise of about 5.6% from RMB 16 million in the same period last year, with 50 Class II products registered and 9 new products under development[36] Corporate Governance - An audit committee has been established to review and supervise the company's financial reporting procedures and internal control systems, consisting of four independent non-executive directors[56] - The company has applied the principles and applicable code provisions of the Corporate Governance Code during the reporting period, with regular reviews of governance policies[57] - The company did not comply with certain provisions of the GEM Listing Rules regarding internal audit functions due to its operational scale and structure, but has implemented sufficient measures for risk management and internal control[58] Shareholder Information - The largest shareholder, Beijing Pusai Asset Management Co., Ltd., holds 31,308,576 shares, representing 38.93% of the company's domestic shares and 21.64% of the total registered capital[50] - Chen Peng, a director, holds 11,330,334 shares, accounting for 14.09% of the company's domestic shares and 7.83% of the total registered capital[50] - Chen Zhengyong, another director, owns 10,000,000 shares, which is 12.43% of the domestic shares and 6.91% of the total registered capital[50] Compliance and Regulatory Matters - The company announced non-compliance with the GEM Listing Rules related to transactions with Anhui Guoke Kangyi Medical Technology Co., Ltd., involving total amounts of approximately RMB 16.99 million, RMB 5.05 million, and RMB 1.61 million for respective periods[59] - The board is unaware of any information that needs to be disclosed under the GEM Listing Rules after reasonable inquiries during the reporting period[60]

Financial Performance - The company's operating revenue for the year reached approximately RMB 289.1 million, a decrease of about 22.5% compared to the previous year[20] - The company reported a loss of approximately RMB 19.2 million for the year, compared to a profit of approximately RMB 14.2 million in the previous year[20] - The company's revenue for the year was approximately RMB 289.1 million, a decrease of about 22.5% compared to RMB 373.1 million in the previous year[38] - Gross profit was approximately RMB 127.4 million, down about 12.9% from RMB 146.3 million last year, with a gross margin of approximately 44.1% compared to 39.2% in the previous year[39] - Research and development costs totaled approximately RMB 35.8 million, an increase of about 33.3% from RMB 26.9 million last year, primarily due to increased R&D expenses for flow cytometers and related reagents[42] - The company reported a loss of approximately RMB 19.2 million for the year, compared to a profit of approximately RMB 14.2 million in the previous year, mainly due to decreased revenue and increased expenses[44] - The net debt increased by approximately RMB 15.56 million compared to the previous year, primarily due to operating losses leading to reduced cash flow from operating activities[53] - The group reported a profit of approximately RMB 30,880,000 as of December 31, 2023, with distributable reserves of about RMB 14,433,000, an increase from RMB 9,522,000 as of December 31, 2022[157] Dividend Policy - The board of directors did not recommend the distribution of any dividends for the fiscal year ending December 31, 2023, consistent with the previous year[24] - The group did not recommend any dividend distribution for the year ending December 31, 2023, consistent with the previous year[149] - The company has adopted a dividend policy to allow shareholders to share in profits while ensuring sufficient reserves for future development, contingent on profitability and stable operating conditions[115] Market and Industry Trends - The Chinese in vitro diagnostic (IVD) market is projected to grow from RMB 170 billion in 2022 to RMB 288.15 billion by 2030, with an expected market share increase to 33.2% globally[47] - The IVD industry in China is experiencing intense competition, with over 2,000 production and research enterprises primarily in the mid-to-low-end market[33] - From January to August 2023, the total number of medical consultations in national healthcare institutions reached 4.52 billion, a year-on-year increase of 13.5%[25] - Hospital consultations accounted for 2.75 billion, with a year-on-year growth of 3%, including 2.3 billion from public hospitals (up 2.6%) and 450 million from private hospitals (up 5.2%) [25] Product Development and Innovation - The company successfully launched its first and second-generation flow cytometers, showcasing its leading innovation capabilities in the industry[26] - The company completed 100 Class II product and 10 Class III product registration changes during the reporting period[28] - Eight patents, including a method for eliminating non-specific reactions in blood sample testing, entered the substantive examination stage[28] - The company is focusing on developing and introducing medical diagnostic products, expanding its product pipeline with immunofluorescence, molecular diagnostics, and POCT products[26] Cost Management and Efficiency - The company is enhancing internal control management and optimizing production processes to reduce costs and increase revenue and profit[26] - The ongoing healthcare reforms and procurement policies are pressuring companies to reduce operational costs and improve efficiency[34] - Sales and distribution expenses rose to approximately RMB 59 million, an increase of about 7.2% from RMB 55 million last year, mainly due to enhanced sales efforts[40] - Administrative expenses increased to approximately RMB 51.5 million, up about 15.1% from RMB 44.7 million last year, primarily due to rising employee costs[41] Corporate Governance - The board of directors held a total of seven meetings during the year 2023, with an average attendance rate of 75%[80] - The highest attendance rate for a single meeting was 100%, achieved on July 19, 2023[80] - The board consists of at least one-third independent non-executive directors, ensuring compliance with corporate governance standards[76] - The company has established mechanisms to enhance the recruitment process for independent non-executive directors, including annual reviews of their contributions[75] - The chairman and president roles are held by separate individuals, with clear delineation of responsibilities[84] - The company has adopted a standard code of conduct for directors regarding securities trading, ensuring compliance with GEM listing rules[85] - The board has formed three committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee, to oversee specific areas of the company's affairs[88] - The board reviewed the need for an internal audit function during the reporting period[75] - The company has received annual confirmations from independent non-executive directors regarding their independence[76] - The board's composition reflects a diverse perspective, with members having expertise in technology, medicine, and economics[76] Risk Management - The company has established a comprehensive risk management system to identify and manage key operational risks, ensuring a safe and effective working environment[120] - The company has implemented measures to manage accounts receivable effectively, addressing potential bad debt risks as sales scale increases[125] - The company has established emergency mechanisms to respond to natural disasters and public health events, ensuring business continuity and safety[125] - The company has established a three-line defense system for risk management, including business department defenses, executive team defenses, and board defenses, ensuring compliance and effective risk control[126] - In 2023, the company conducted economic responsibility audits for internal personnel and external intermediaries, with no significant omissions or defects found during the reporting period[126] - The company plans to revise relevant systems and build a more reasonable organizational structure and internal audit framework in 2024 to enhance risk management[126] - The company has implemented a whistleblowing policy to provide a confidential reporting channel for employees and external parties regarding potential misconduct or illegal activities[128] - The company is committed to ensuring that whistleblowers are not harmed or treated unfairly[130] - The company has adopted an anti-corruption policy, prohibiting all forms of corruption, bribery, extortion, fraud, or money laundering[132] Shareholder Relations - The company aims to maintain high transparency and build long-term relationships with shareholders and investors through various communication channels[133] - The company ensures that shareholders receive timely and accurate information regarding its strategies, business, and financial performance[135] - Shareholders holding 10% or more of the company's shares have the right to request a special general meeting, with the board required to respond within ten days[139] - The company will bear the necessary costs for meetings convened by the supervisory board or shareholders themselves[140] Board Composition and Changes - The board of directors has undergone changes, with several appointments and resignations throughout the year, including the appointment of new executive directors[161] - The company has not granted any rights to directors or supervisors to purchase shares or debt securities as of December 31, 2023[171] - The company has maintained compliance with all corporate governance code provisions, except for the internal audit function as per code provision D.2.5[176] - The board has implemented measures to ensure compliance with financial reporting and internal control principles[176] - The company will review the necessity of establishing an internal audit function periodically[176] Auditor and Financial Statements - The auditor, Ernst & Young, will be proposed for reappointment at the upcoming annual general meeting[185] - The financial statements for the year 2023 were deemed to accurately reflect the company's financial position and operating results[189] - The company has not entered into any related party transactions that require disclosure under the GEM Listing Rules[179] - There are no existing indemnity provisions benefiting any directors or connected persons as of the report date[182] - The company plans to continue strict adherence to its articles of association and relevant regulations to protect shareholder interests in 2024[190] Employee and Talent Management - The total employee cost for the year ended December 31, 2023, was approximately RMB 99 million, an increase from RMB 90 million in 2022, with a total of 537 full-time employees as of the reporting date[58] - The company actively recruits and trains employees to maintain a competitive workforce, providing comprehensive onboarding and ongoing training programs[125] New Director Profile - Professor Shen Zuojun joined the company in May 2023 as an independent non-executive director[200] - Professor Shen holds multiple positions, including associate professor and chief laboratory technician at Anhui Provincial Hospital[200] - He obtained his medical doctorate from China Union Medical University in 1998[200] - Professor Shen was recognized as one of the "Outstanding Young Experts in Health and Family Planning" in 2017[200] - He has served as a national member of various professional committees in clinical testing and health technology[200] - Professor Shen is also an editorial board member for several medical journals[200] - He completed his postdoctoral research at Harvard Medical School from 1998 to 2000[200] - In 2018, he received a special allowance from the State Council[200] - Professor Shen is a member of the American Association for Clinical Chemistry[200] - His expertise includes clinical laboratory management and health technology assessment[200]

Financial Performance - The company reported its audited consolidated results for the year ended December 31, 2023, in accordance with GEM listing rules[3]. - The company's operating revenue for the year reached approximately RMB 289.1 million, a decrease of about 22.5% compared to the previous year[20]. - The company reported a loss of approximately RMB 19.2 million for the year, compared to a profit of RMB 14.2 million in the previous year[20]. - Gross profit for the year was approximately RMB 127.4 million, down about 12.9% from RMB 146.3 million in the previous year, with a gross margin of approximately 44.1%, an increase from 39.2% in the previous year[39]. - Research and development costs totaled approximately RMB 35.8 million, an increase of about 33.3% from RMB 26.9 million in the previous year, mainly due to increased R&D expenses for flow cytometers and related reagents[42]. - The company reported a net debt increase of approximately RMB 15.56 million compared to the previous year, primarily due to operating losses leading to reduced cash flow from operating activities[53]. - As of December 31, 2023, the company's cash and bank balances were RMB 63.41 million, down from RMB 77.35 million in 2022[52]. - The company's net debt to equity ratio increased to 34% in 2023 from 27% in 2022, indicating a higher leverage position[52]. - The total employee cost for the year was approximately RMB 99 million, an increase from RMB 90 million in 2022, reflecting the company's investment in human resources[58]. - The company recorded retained earnings of approximately RMB 30.88 million as of December 31, 2023[157]. - The distributable reserves available to shareholders were approximately RMB 14.43 million as of December 31, 2023, compared to RMB 9.52 million as of December 31, 2022[157]. Corporate Governance - The board of directors does not recommend the distribution of any dividends for the fiscal year ending December 31, 2023[24]. - The board of directors held a total of seven meetings during the fiscal year 2023, with an average attendance rate of 75%[80]. - The board is responsible for overseeing the group's management, business strategy, and financial matters, including major acquisitions and capital transactions[68]. - The company has not established a corporate governance committee, delegating governance functions to the board[69]. - The board has implemented mechanisms to ensure independent opinions and inputs, including enhancing the recruitment process for independent non-executive directors[74]. - The company has confirmed that all independent non-executive directors meet the independence criteria as per the GEM Listing Rules[76]. - The board's composition includes members with expertise in technology, medicine, and economics, ensuring representation of shareholders' interests[76]. - The board reviewed and monitored compliance with legal and regulatory requirements during the reporting period[75]. - The company has established a code of conduct and compliance manual for employees and directors[75]. - The board's meetings included discussions on corporate governance policies and the training of directors and senior management[75]. - The board of directors has established three committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee to oversee specific areas of the company's affairs[88]. - The company has adopted a standard code of conduct for directors regarding securities trading, ensuring compliance with GEM Listing Rules[85]. - The company is committed to evaluating the performance of executive directors and reviewing the remuneration of all directors[92]. - The board's strategic oversight includes approving annual budgets and business plans, as well as assessing company performance[84]. - The board has adopted a diversity policy for board appointments, considering factors such as gender, age, cultural background, and professional experience[95]. - The nomination committee held two meetings during the reporting period, with all members attending at least one meeting[98]. - The company aims to achieve gender diversity on the board, targeting the appointment of at least one female director by December 31, 2024[101]. - The company has maintained compliance with all corporate governance codes, except for the internal audit function, which is currently not established due to the group's scale and operational structure[176]. Market and Industry Insights - The company acknowledges the potential market volatility risks associated with trading securities on GEM[4]. - The Chinese in vitro diagnostics (IVD) market is projected to grow from RMB 170 billion in 2022 to RMB 288.15 billion by 2030, with an expected market share increase to 33.2% globally[47]. - The IVD industry is undergoing significant changes, with opportunities and challenges arising in various segments, particularly in immunodiagnostics and molecular diagnostics[37]. - The IVD industry is expected to see increased market concentration and intensified competition, prompting companies to focus on quality improvement and cost reduction[48]. - The company is focused on enhancing its research and development capabilities to mitigate risks associated with technological obsolescence in the IVD industry[123]. - The company aims to enhance its core competitiveness and market position through strategic collaborations with industry leaders[28]. - The company is actively seeking strategic partnerships with industry leaders to explore new profit models and enhance its competitive edge[51]. - The company is positioned to capitalize on the growing demand for healthcare solutions, driven by advancements in technology and increasing healthcare needs[198]. Operational Developments - The report includes a comprehensive financial summary and management discussion and analysis[7]. - The company completed 100 Class II product and 10 Class III product registration changes during the reporting period[28]. - The company has developed nine new products, including the MTHFR (C677T) gene testing kit, which are currently undergoing registration[28]. - The company has established a performance evaluation system focused on project outcomes in its R&D center[26]. - The company is focusing on expanding its sales network and enhancing its marketing strategies to increase revenue[26]. - The company has made significant progress in the development of innovative diagnostic products, including immunofluorescence and molecular diagnostics[26]. - The company has two self-built comprehensive factories covering a total area of 37.17 acres, with the first factory primarily used for office, R&D, and biochemical reagent production, and the second for diagnostic reagent production[46]. - The increase in sales and distribution expenses to approximately RMB 59 million, up about 7.2% from RMB 55 million in the previous year, was mainly due to enhanced sales efforts[40]. - Administrative expenses rose to approximately RMB 51.5 million, an increase of about 15.1% from RMB 44.7 million in the previous year, primarily due to increased employee costs[41]. - The company aims to enhance its product planning and cost control strategies in response to the pressures from healthcare reforms and procurement policies affecting profit margins[34]. - The company is committed to maintaining high standards in clinical testing and diagnostics, supported by its experienced management team[197]. Risk Management and Compliance - The company emphasizes the importance of maintaining effective internal controls and risk management systems to protect shareholder interests[118]. - The company has established a comprehensive risk management system to identify and manage key operational risks[120]. - The company has implemented a quality management system based on ISO 9001:2008 and ISO 13485:2003, ensuring quality control throughout the production process[123]. - The board confirmed that there are no significant uncertainties regarding the company's ability to continue as a going concern as of December 31, 2023[114]. - The company has adopted an insider information disclosure policy to ensure compliance with confidentiality regulations and obligations[127]. - A whistleblowing policy has been implemented to provide a confidential reporting channel for employees and external parties regarding potential misconduct or illegal activities[128]. - The company has a robust anti-corruption policy in place, prohibiting all forms of corruption and regularly reviewing the policy to align with legal requirements and industry best practices[132]. - The company has not identified any significant omissions or defects in its internal audits during the reporting period, confirming the effectiveness of its risk management measures[126]. - In 2024, the company plans to revise relevant systems and build a more effective internal audit structure to enhance risk management in daily operations[126]. Shareholder Communication and Engagement - The company is committed to maintaining effective communication with shareholders and ensuring compliance with the GEM Listing Rules[110]. - The company ensures that shareholder opinions are communicated to the board and has established various channels for this purpose[142]. - The company has not engaged in any purchase, redemption, or sale of its listed securities during the year[60]. - The company has not established any indemnity provisions for directors or connected companies during the year[182]. - The company plans to propose the reappointment of Ernst & Young as its auditor at the upcoming annual general meeting[185]. Leadership and Management - The chairman and president positions are held by Mr. Wu Lebin and Mr. Chen Peng, respectively, with clearly defined responsibilities[84]. - The company has appointed several experienced directors, including Mr. Chen Zhengyong and Mr. Yang Peng, who bring over 40 years and 20 years of experience in the medical and financial sectors respectively[193][196]. - The company has a strong board with members holding advanced degrees and significant experience in medical technology and management, enhancing its strategic direction[197][200]. - The board includes independent directors with notable academic and professional achievements, ensuring diverse perspectives in decision-making[200]. - The company is committed to maintaining transparency and open communication with shareholders and investors, utilizing various channels to provide timely and accurate information[133].

Financial Performance - For the three months ended September 30, 2023, the company reported revenue of RMB 71,418,000, a decrease of 30.8% compared to RMB 103,223,000 for the same period in 2022[14] - The gross profit for the third quarter of 2023 was RMB 35,217,000, down 23.1% from RMB 45,757,000 in the third quarter of 2022[14] - The operating loss for the third quarter of 2023 was RMB 6,255,000, compared to an operating profit of RMB 12,472,000 in the same quarter of the previous year[14] - The net loss attributable to the owners of the parent company for the third quarter of 2023 was RMB 569,000, compared to a profit of RMB 10,691,000 in the third quarter of 2022[14] - The company reported a net loss of RMB 10,698,000 for the nine months ended September 30, 2023, compared to a profit of RMB 17,377,000 for the same period in 2022[14] - The total revenue for the nine months ended September 30, 2023, was RMB 210,564,000, a decrease of 23.6% from RMB 275,659,000 in the same period of 2022[14] - The company’s total comprehensive loss for the nine months ended September 30, 2023, was RMB 10,662,000, compared to a profit of RMB 17,412,000 in the same period of 2022[15] - The company’s basic and diluted loss per share for the third quarter of 2023 was RMB 0.004, compared to earnings per share of RMB 0.074 in the same quarter of 2022[14] - The company reported a basic loss per share attributable to shareholders of RMB 4.86 for the three months ended September 30, 2023, compared to earnings of RMB 73.93 per share in the same period of 2022[26] Research and Development - Research and development expenses increased to RMB 9,724,000 in the third quarter of 2023, up 46.5% from RMB 6,646,000 in the same quarter of 2022[14] - The company continues to focus on expanding its research and development efforts despite the financial losses reported[14] - The company successfully obtained certification for over 50 core innovative products, including first and second-generation flow cytometers, from the Anhui Provincial Drug Administration, pushing them into clinical and research markets[31] - The company is focused on accelerating the transformation of scientific research achievements and improving its product pipeline through the establishment of a technology achievement transformation center[35] Market and Business Strategy - In the first three quarters of 2023, the company faced a gradual recovery in domestic medical institution visits and a steady growth in routine in vitro diagnostic testing demand[31] - The company aims to leverage the good opportunity of multi-province centralized procurement of biochemical reagents to further expand the market and improve cost efficiency[35] - The company is actively building a chain of precision medicine laboratories in cities like Beijing, Hefei, Chengdu, Jinan, and Nanchang to enhance research collaboration and academic promotion[31] - The company plans to strengthen its competitive advantage in the biochemical diagnostic market and increase market share through various initiatives[35] - The strategic cooperation system with institutions like the Chinese Academy of Sciences and major hospitals is expected to drive business development through integrated industry-university-research collaboration[35] - The company has received positive market feedback for its innovative equipment and reagent products in biochemistry, immunology, and early cancer screening[31] Ownership and Governance - The company reported a significant ownership structure, with key stakeholders holding approximately 36.01% each in Hong Kong Zhixin Investment Limited[1] - Yunnan Shengneng Investment Partnership holds a 43.0% stake, indicating a diversified ownership among multiple shareholders[2] - The company has established an audit committee to oversee financial reporting and internal control systems, ensuring compliance with GEM listing rules[3] - The company has adhered to all provisions of the Corporate Governance Code as per GEM listing rules, with minor exceptions noted[5] - The board has implemented measures to maintain risk management and internal control without establishing a dedicated internal audit department[6] - The company is committed to reviewing the necessity of an internal audit function periodically, based on operational needs[7] - The management team has engaged external consultants for internal reviews, enhancing oversight and compliance[8] - The company has not disclosed any conflicts of interest among its directors and management during the reporting period[9] - No significant changes in shareholder equity or related interests were reported as of September 30, 2023[10] Other Financial Information - The company’s financial expenses for the third quarter of 2023 were RMB 1,844,000, slightly up from RMB 1,843,000 in the same quarter of 2022[14] - The company did not declare an interim dividend for the nine months ended September 30, 2023, consistent with the previous year[30] - The company’s rental income for the three months ended September 30, 2023, was RMB 403,000, a decrease of 96.9% from RMB 13,345,000 in the same period of 2022[21] - The company’s deferred tax expense for the nine months ended September 30, 2023, was RMB 342,000, compared to RMB 2,000 in the same period of 2022[25] - The company’s total reserves as of September 30, 2023, amounted to RMB 199,892,000, down from RMB 210,451,000 as of September 30, 2022[29] - No purchases, sales, or redemptions of the company's listed securities were reported in the nine months ending September 30, 2023[4]

中 生 北 控 生 物科 技 股 份 有 限 公司 BIOSINO BIO-TECHNOLOGY AND SCIENCE INCORPORATION （於中華人民共和國註冊成立的股份有限公司） 8247 （股份代號： ） 截至二零二三年九月三十日止三個月及九個月 第三季度業績公佈 GEM 香港聯合交易所有限公司（「聯交所」） 的特色 GEM 的定位，乃為相比起其他在聯交所上市的公司帶有較高投資風險的公司提供一個上市的 市場。有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方作 GEM GEM 出投資決定。 的較高風險及其他特色表示 較適合專業及其他老練投資者。 GEM GEM 由於 上市公司新興的性質所然，在 買賣的證券可能會較於聯交所主板買賣之證券 GEM 承受較大的市場波動風險，同時無法保證在 買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本公佈的內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表示概不就因本公佈全部或任何部分內容而產生或因倚賴該等內容而引 致的任何損失承擔任何責任。 GEM GEM 本公佈乃遵照聯交所 《證券上市規則》（「 上市規則」） ...

Financial Performance - Biosino Bio-Technology reported a significant increase in revenue, achieving a total of RMB 200 million for the first half of 2023, representing a growth of 15% compared to the same period last year[19]. - The company's main business revenue for the six months ended June 30, 2023, was approximately RMB 139.1 million, a decrease of about 19.3% compared to RMB 172.4 million in the same period of 2022[32]. - Gross profit for the reporting period was approximately RMB 66.7 million, down about 4.8% from RMB 70.1 million in the same period last year, with a gross margin of approximately 48% compared to 41% in 2022[33]. - The company reported a loss of approximately RMB 8 million for the reporting period, compared to a profit of approximately RMB 4.7 million in the same period last year[37]. - The total comprehensive income for the six months ended June 30, 2023, was a loss of RMB 5,368,000, compared to a loss of RMB 7,956,000 for the same period in 2022[72]. - The operating profit for the six months ended June 30, 2023, was RMB 72,470,000, a decrease from RMB 102,381,000 in the same period of 2022, representing a decline of approximately 29.3%[89]. - The total tax expense for the six months ended June 30, 2023, was RMB 2,201,000, compared to RMB 2,440,000 in 2022, reflecting a decrease of approximately 9.8%[93]. - Basic earnings per share for the six months ended June 30, 2023, remained unchanged at RMB 0.50, consistent with the same period in 2022[94]. - The company did not declare an interim dividend for the six months ended June 30, 2023, which is the same as in 2022[98]. Research and Development - Research and development expenses increased by approximately 32.8% to RMB 16 million from RMB 12 million in the same period last year, with 49 Class II products and 3 Class III products completed for registration changes[36]. - The company is committed to developing new diagnostic technologies and products to meet the evolving needs of healthcare institutions[19]. - Future outlook indicates a strategic focus on expanding product lines and enhancing research and development efforts to maintain competitive advantage in the market[19]. - The company aims to leverage its strong ties with the Chinese Academy of Sciences to further enhance its research capabilities and product offerings[19]. Market Position and Strategy - The company expanded its distribution network, now covering over 600 distributors across more than 30 provinces and municipalities in China, enhancing its market reach[19]. - Biosino's diagnostic reagent products have gained widespread recognition, with the brand being awarded the "Beijing Famous Brand Product" title in 2002 and the "First Brand in User Satisfaction for Diagnostic Reagents in China" in 2005[19]. - The company plans to maintain quality advantages in traditional biochemical diagnostic products and increase market share through successful bidding in centralized procurement[40]. Financial Health and Assets - Biosino's financial health remains robust, with a solid balance sheet supporting ongoing investments in technology and market expansion initiatives[19]. - The net debt-to-equity ratio increased to 40% from 27% in the previous year, with total liabilities to total assets ratio remaining stable at 61%[45]. - As of June 30, 2023, the company had total non-current assets of RMB 208,403,000, slightly up from RMB 205,785,000 at the end of 2022[67]. - The company’s cash and cash equivalents decreased to RMB 54,777,000 as of June 30, 2023, down from RMB 77,349,000 at the end of 2022[67]. - The company’s inventory increased to RMB 65,012,000 as of June 30, 2023, compared to RMB 55,486,000 at the end of 2022[67]. - Total equity as of June 30, 2023, was RMB 226,151,000, down from RMB 234,107,000 as of December 31, 2022, indicating a decline of about 3.4%[69]. - The company reported a net cash decrease of RMB 22,572,000 for the six months ended June 30, 2023, compared to a decrease of RMB 8,347,000 in the same period of 2022[74]. Employee and Administrative Expenses - Total employee costs for the six months ended June 30, 2023, were approximately RMB 47,700,000, an increase of 15.8% from RMB 41,200,000 in the previous year[54]. - The increase in administrative expenses by approximately 20.6% to RMB 25.8 million was primarily due to rising employee costs[35]. - Sales and distribution expenses rose by approximately 7.9% to RMB 30.7 million, attributed to increased sales efforts[34]. - The total management compensation for the six months ended June 30, 2023, was RMB 3,145,000, a decrease from RMB 3,486,000 in 2022, reflecting a decline of about 9.8%[111]. Corporate Governance - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the period[132]. - The company has complied with all corporate governance code provisions during the period, except for the internal audit function as per code provision D.2.5[133]. - The board has implemented measures to fulfill internal audit functions, including appointing external consultants for internal reviews[134]. - Following the resignation of an independent non-executive director, the company initially failed to meet the requirement of having at least three independent non-executive directors, which was rectified after a new appointment[137]. Shareholding and Securities - As of June 30, 2023, Mr. Wu Lebin holds 3,500,878 shares, representing 4.35% of the company's domestic shares and 2.42% of the total registered capital[116]. - Mr. Chen Peng holds 11,330,334 shares, accounting for 14.09% of the domestic shares and 7.83% of the total registered capital[116]. - Mr. Chen Zhengyong owns 10,000,000 shares, which is 12.43% of the domestic shares and 6.91% of the total registered capital[116]. - Beijing Pusai Asset Management Co., Ltd. directly holds 31,308,576 shares, representing 38.93% of the domestic shares and 21.64% of the total registered capital[118]. - Hong Kong Zhixin Investment Co., Ltd. holds 27,256,143 H shares, accounting for 42.40% of the H shares[118]. - Yunnan Shengneng Investment Partnership holds 10,939,314 domestic shares and 6,780,000 H shares, representing 13.60% and 10.55% of the respective categories[118]. - The company did not grant any rights to directors or supervisors to purchase shares or debt securities as of June 30, 2023[127]. - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the six months ending June 30, 2023[129]. - No directors, supervisors, or major shareholders held interests in any business that competes directly or indirectly with the company during the reporting period[128]. - The company has adopted the standards outlined in GEM Listing Rules 5.48 to 5.67 for the trading of securities by directors, with no known violations reported as of June 30, 2023[130].

中 生 北 控 生 物科 技 股 份 有 限 公司 BIOSINO BIO-TECHNOLOGY AND SCIENCE INCORPORATION （於中華人民共和國註冊成立的股份有限公司） 8247 （股份代號： ） 中期業績公佈 截至二零二三年六月三十日止三個月及六個月 GEM 香港聯合交易所有限公司（「聯交所」） 的特色 GEM 的定位，乃為相比起其他在聯交所上市的公司帶有較高投資風險的公司提供一個上市的 市場。有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方作 GEM GEM 出投資決定。 的較高風險及其他特色表示 較適合專業及其他老練投資者。 GEM GEM 由於 上市公司新興的性質所然，在 買賣的證券可能會較於聯交所主板買賣之證券 GEM 承受較大的市場波動風險，同時無法保證在 買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本公佈的內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表示概不就因本公佈全部或任何部分內容而產生或因倚賴該等內容而引 致的任何損失承擔任何責任。 GEM GEM 本公佈乃遵照 《證券上市規則》（「《 上市規則》」）的規定 ...

Financial Performance - The company's revenue for the first quarter of 2023 was RMB 71,103,000, a decrease of 19.7% compared to RMB 88,560,000 in the same period of 2022[15] - Gross profit for the first quarter was RMB 31,944,000, down 7.0% from RMB 34,688,000 year-over-year[15] - The operating loss for the quarter was RMB 3,157,000, compared to an operating profit of RMB 5,393,000 in the first quarter of 2022[15] - The net loss attributable to the owners of the parent company was RMB 5,132,000, compared to a profit of RMB 594,000 in the same quarter of the previous year[15] - Basic and diluted loss per share for the first quarter was RMB 0.04, compared to RMB 0.01 in the same period of 2022[15] - The total comprehensive loss for the period was RMB 6,173,000, compared to a total comprehensive income of RMB 2,132,000 in the first quarter of 2022[18] - The financial results indicate a significant decline in profitability, prompting a review of operational strategies moving forward[15] Research and Development - Research and development expenses increased to RMB 8,754,000, up 72.0% from RMB 5,074,000 in the first quarter of 2022[15] - The company is committed to enhancing its research and development capabilities to drive future growth[21] - The company has applied for a patent for a new detection reagent kit method that eliminates non-specific reactions in blood samples[37] Market and Sales - The company continues to focus on the production, sales, and distribution of in vitro diagnostic reagents[21] - Sales of in vitro diagnostic reagent products amounted to RMB 68,324 thousand, up from RMB 67,528 thousand year-on-year, indicating a growth of 1.2%[23] - The domestic in vitro diagnostic product market is characterized by large-scale automation and standardization, with biochemical diagnostic reagents and immunodiagnostic reagents accounting for over 50% of the total market demand[33] - The company is focusing on strengthening cooperation with distributors and end hospitals, while diversifying marketing models to expand sales channels[34] Corporate Governance - The company has established an Audit Committee to oversee financial reporting and internal control systems, consisting of three independent non-executive directors[55] - The company confirms that all directors complied with the standard code of conduct for securities trading during the reporting period[49] - No directors or supervisors have interests in any business that competes directly or indirectly with the company's operations[50] - The company has complied with all provisions of the Corporate Governance Code except for the internal audit function as per D.2.5[56] - The board has implemented measures to fulfill internal audit functions through external consultants due to the group's scale and operational structure[57] - The board will periodically review the necessity of establishing an internal audit function and may form an internal audit team if needed[57] Shareholding Structure - As of March 31, 2023, Mr. Chen Peng holds 11,330,334 shares, representing 14.09% of the domestic shares and 7.83% of the total registered capital[40] - Beijing Holdings Limited directly owns 27,256,143 H-shares, accounting for 42.40% of H-shares and 18.84% of the total registered capital[42] - Yunnan Shengneng Investment Partnership holds 10,939,314 domestic shares and 6,780,000 H-shares, representing 13.60% and 10.55% of their respective categories[42] - There are no significant changes in the shareholding structure of major shareholders as of March 31, 2023[48] Other Information - The group aims to optimize its investment structure and enhance asset operation efficiency, returning more resources to its core business[36] - The group has achieved significant results in promoting scientific research cooperation and technology exchange, continuously improving its industrial strategic layout[36] - The group reported a tax expense of RMB 1,012 thousand for the three months ended March 31, 2023, compared to RMB 1,091 thousand in the same period of 2022, reflecting a decrease of 7.2%[28] - The company did not recommend the distribution of an interim dividend for the three months ended March 31, 2023, consistent with the previous year[31] - No purchases, redemptions, or sales of the company's listed securities were made by the company or its subsidiaries during the reporting period[51] - The report does not provide specific user data or performance guidance for future quarters[44] - The company has not disclosed any new strategies or significant market expansions in the current report[44]