NOTIFICATION LETTER 通知信函 29 August 2025 Dear Registered Shareholders, Biosino Bio-Technology and Science Incorporation (the "Company") – Notice of publication of Interim Report 2025 (the "Current Corporate Communication") The English and Chinese versions of the Company's Current Corporate Communications are now available on the Company's website at www.zhongsheng.com.cn and the website of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") at www.hkexnews.hk respectively (the "Website Version"). ...

Company Information [Company Basic Information](index=4&type=section&id=Company%20Basic%20Information) This section details the company's China and Hong Kong office addresses, official website, board of directors, committees, CEO, company secretary, authorized representatives, auditors, legal advisors, and principal bankers - The company has its China office at No. 27 Chaoqian Road, Changping Science Park, Beijing, China, and its Hong Kong office at 66/F, Central Plaza, 18 Harbour Road, Wanchai, Hong Kong[6](index=6&type=chunk) - The Chairman of the Board is Mr. Chen Zhengyong, Vice Chairmen are Mr. Li Zhonghua and Mr. Yang Peng, and the President is Mr. Chen Peng[6](index=6&type=chunk) - The Chairman of the Audit Committee is Mr. Fan Xiaoliang, the Chairman of the Remuneration Committee is Professor Shen Zuojun, and the Chairman of the Nomination Committee is Mr. Chen Zhengyong[7](index=7&type=chunk)[8](index=8&type=chunk) [H Share Information](index=5&type=section&id=H%20Share%20Information) This section outlines the company's H share listing details on GEM, including listing venue, stock code, number of H shares issued, par value, and stock short name H Share Basic Information | Metric | Information | | :--- | :--- | | Listing Venue | GEM | | Stock Code | 8247 | | Number of H Shares Issued | 64,286,143 H shares | | Par Value | RMB 1.00 per share | | Stock Short Name | CNBG Bio-Tech | Group Profile [Company Business and Background](index=6&type=section&id=Company%20Business%20and%20Background) The company is a leading Chinese IVD reagent supplier, focusing on R&D, production, sales, and distribution of IVD products, backed by its largest shareholder, a subsidiary of the Chinese Academy of Sciences - CNBG Bio-Tech is a leading in-vitro diagnostic (IVD) reagent supplier in China, primarily engaged in the R&D, production, sales, and distribution of IVD reagent products[10](index=10&type=chunk) - The company's largest shareholder, Beijing Pusa Asset Management Co., Ltd., is a wholly-owned subsidiary of the Institute of Biophysics, Chinese Academy of Sciences, providing strong scientific research backing[10](index=10&type=chunk)[11](index=11&type=chunk) - The company's "CNBG" brand enjoys a high reputation, having received awards such as "Beijing Famous Brand Product," "China Diagnostic Reagent Market User Satisfied Quality and Reputation First Brand," and "Beijing Famous Trademark"[10](index=10&type=chunk) - The company's H shares have been listed on GEM since February 27, 2006[12](index=12&type=chunk) Group Structure [Equity Structure Chart](index=7&type=section&id=Equity%20Structure%20Chart) This section illustrates the equity structure of the company, its major shareholders, and subsidiaries, including the Chinese Academy of Sciences and Beijing Pusa Asset Management Co., Ltd., with their respective shareholding percentages - The Group's organizational chart shows the Institute of Biophysics, Chinese Academy of Sciences, holding equity in CNBG Bio-Tech through Beijing Pusa Asset Management Co., Ltd[15](index=15&type=chunk) - CNBG Bio-Tech's H shares are listed on GEM of the Stock Exchange, and its subsidiary, Beijing CNBG Jinyu Diagnostic Technology Co., Ltd., has its shares traded on the National Equities Exchange and Quotations (New Third Board)[16](index=16&type=chunk) Management Discussion and Analysis [Operating Environment](index=8&type=section&id=Operating%20Environment) In H1 2025, China's IVD industry faced intensified competition and profit pressure due to centralized procurement, medical insurance cost control, and post-pandemic market shifts, despite continuous market demand growth - The continuous advancement of domestic IVD centralized procurement expansion and national medical insurance cost control policies, along with changes in market demand post-pandemic, profoundly impacted the company's business[17](index=17&type=chunk) - Competition in the IVD industry intensified, with the biochemical diagnostics sector facing dual pressure from established domestic and international players and emerging competitors, increasing market expansion difficulty[17](index=17&type=chunk) - Population aging, increasing chronic diseases, rising healthcare investment, and enhanced technological innovation are continuous drivers for China's IVD industry, but centralized procurement and intensified competition led to suppressed product terminal prices and profit growth pressure for enterprises[18](index=18&type=chunk) [Financial Performance](index=9&type=section&id=Financial%20Performance) During the reporting period, the company experienced significant declines in revenue and gross profit, primarily due to centralized procurement and medical insurance cost control policies, leading to an expanded loss H1 2025 Key Financial Indicators | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue from Principal Activities | 95,800 | 133,800 | -28.4% | | Gross Profit | 37,400 | 58,500 | -36.1% | | Gross Profit Margin | 39.0% | 43.7% | -4.7 percentage points | | Selling and Distribution Expenses | 20,300 | 31,600 | -35.7% | | Administrative Expenses | 23,300 | 22,300 | +4.4% | | Research and Development Expenses | 13,300 | 16,900 | -21.0% | | Loss for the Period | 22,900 | 18,300 | +25.1% | - The decrease in revenue and gross profit was primarily due to the impact of centralized procurement of medical consumables and national medical insurance cost control policies, leading to lower product selling prices, reduced sales volume, and an increased proportion of revenue from lower gross margin products[21](index=21&type=chunk)[22](index=22&type=chunk) - In terms of R&D, the company completed the renewal registration for **76 Class II products** and successfully completed the initial registration for **1 Class III novel coronavirus antigen detection kit**[25](index=25&type=chunk) [Future Outlook](index=10&type=section&id=Future%20Outlook) China's IVD market is projected to exceed RMB 190 billion by 2028, and the company plans to strengthen its core business, diversify product lines, optimize operations, and expand market channels to seize opportunities - China's IVD market size is expected to grow from **RMB 133.2 billion in 2024** to **RMB 190 billion in 2028**, maintaining high growth momentum[27](index=27&type=chunk) - The company's strategy for the second half of the year includes: maintaining the quality advantage of traditional biochemical diagnostic products and increasing sales; strengthening multi-pipeline product layout and market promotion; optimizing production processes to reduce production costs; and closely following industry trends to proactively plan for new business growth points[29](index=29&type=chunk) - The company's independently developed **4-laser 21-color BioCyteX (clinical) high-end flow cytometer** has obtained a medical device registration certificate and commenced market sales on August 1, 2025, making it the first domestic brand product to receive a 4-laser flow cytometer registration certificate in China[29](index=29&type=chunk) - The company is actively expanding domestic and international market channels, for example, achieving steady sales growth in the Southeast Asian market through deep cooperation with China Resources Beijing Technology to build an integrated IVD supply chain platform[30](index=30&type=chunk)[31](index=31&type=chunk) [Capital Structure, Financial Position, and Liquidity](index=12&type=section&id=Capital%20Structure%2C%20Financial%20Position%2C%20and%20Liquidity) During the reporting period, the company's capital structure changed with increased net debt and net debt-to-capital ratio, and decreased cash and bank balances, relying on borrowings for operations Capital Structure Key Indicators | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 46,345 | 68,213 | -21,868 | | Short-term Loans | 133,983 | 143,665 | -9,682 | | Long-term Loans | 2,855 | 4,456 | -1,601 | | Net Debt | 90,493 | 80,008 | +10,485 | | Net Debt-to-Capital Ratio | 58% | 46% | +12 percentage points | | Debt-to-Asset Ratio (Total Liabilities/Total Assets) | 64% | 63% | +1 percentage point | - During the reporting period, the company renewed or obtained new bank and other borrowings totaling approximately **RMB 79.5 million**[32](index=32&type=chunk) - Some of the company's buildings, prepaid land lease payments, and machinery were pledged as collateral for bank loans, involving approximately **RMB 81.8 million** in bank loans and **RMB 2.4 million** in other loans[36](index=36&type=chunk) [Foreign Exchange Risk](index=13&type=section&id=Foreign%20Exchange%20Risk) The Group's operations are primarily in China, with most transactions in RMB, resulting in low foreign exchange risk, with minimal HKD cash for Hong Kong expenses - The Group's operations are primarily located in China, with almost all transactions conducted in RMB, resulting in low foreign exchange risk[35](index=35&type=chunk) - A small amount of HKD-denominated cash is held in Hong Kong bank accounts to cover miscellaneous expenses incurred in Hong Kong[35](index=35&type=chunk) [Capital Expenditure](index=13&type=section&id=Capital%20Expenditure) For the six months ended June 30, 2025, the Group's total capital expenditure amounted to RMB 8 million - For the six months ended June 30, 2025, the Group's total capital expenditure amounted to **RMB 8 million**[37](index=37&type=chunk) [Contingent Liabilities](index=14&type=section&id=Contingent%20Liabilities) As of the reporting period end, the Group's counter-guarantee for a loan to a guarantee company remained at RMB 2 million, consistent with the end of 2024 Contingent Liabilities | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Counter-guarantee to a guarantee company for a loan | 2,000 | 2,000 | [Significant Investments, Acquisitions, Disposals, and Future Plans](index=14&type=section&id=Significant%20Investments%2C%20Acquisitions%2C%20Disposals%2C%20and%20Future%20Plans) During the reporting period, the company held no significant investments or conducted major acquisitions/disposals, but plans to actively seek investment opportunities and strategic expansions to enhance revenue and profitability - For the six months ended June 30, 2025, the company held no significant investments and did not undertake any major acquisitions or disposals of subsidiaries and associates[39](index=39&type=chunk) - The Group will actively seek investment opportunities to expand its revenue base, enhance future financial performance and profitability, and pursue strategic expansion through acquisitions of suitable target companies[39](index=39&type=chunk) [Employees and Remuneration Policy](index=15&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 471 full-time employees, with total staff costs of RMB 42.7 million, a decrease year-on-year, and remunerates based on qualifications, experience, performance, and market levels - As of June 30, 2025, the Group employed **471 full-time employees**, a decrease from **554** in the same period of 2024[41](index=41&type=chunk) - For the six months ended June 30, 2025, the Group's total staff costs were approximately **RMB 42.7 million**, a decrease from **RMB 52.1 million** in the same period[41](index=41&type=chunk) - The company determines remuneration based on the qualifications, experience, performance, and market levels of employees and directors, and provides regular training to enhance their technical skills and product knowledge[41](index=41&type=chunk) [Events After Reporting Period](index=15&type=section&id=Events%20After%20Reporting%20Period) No significant events affecting the company occurred after the reporting period and up to the date of this report, other than those already disclosed - Except as disclosed in this report, no significant events affecting the company occurred after the reporting period and up to the date of this report[43](index=43&type=chunk) [Acknowledgements](index=15&type=section&id=Acknowledgements) Mr. Chen Zhengyong, Chairman of the Board, expressed sincere gratitude on behalf of the Board to all shareholders, business partners, and employees for their contributions - Mr. Chen Zhengyong, Chairman of the Board, on behalf of the Board, extended sincere gratitude to all shareholders, business partners for their steadfast support, and all employees for their valuable contributions[44](index=44&type=chunk)[45](index=45&type=chunk) Condensed Consolidated Statement of Profit or Loss [Profit or Loss Overview](index=16&type=section&id=Profit%20or%20Loss%20Overview) For the six months ended June 30, 2025, the Group's revenue decreased by 28.4% to RMB 95,815 thousand, gross profit decreased by 36.1% to RMB 37,378 thousand, and loss for the period expanded to RMB 22,902 thousand Condensed Consolidated Statement of Profit or Loss Key Data | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 95,815 | 133,828 | | Cost of Sales | (58,437) | (75,297) | | Gross Profit | 37,378 | 58,531 | | Loss from Operating Activities | (18,315) | (11,951) | | Loss Before Tax | (22,693) | (16,145) | | Loss for the Period | (22,902) | (18,314) | | Loss Attributable to Owners of the Parent | (17,976) | (13,182) | | Basic and Diluted Loss Per Share (RMB) | (0.124) | (0.091) | Condensed Consolidated Statement of Comprehensive Income [Comprehensive Income Overview](index=18&type=section&id=Comprehensive%20Income%20Overview) For the six months ended June 30, 2025, the Group's total loss for the period and total comprehensive loss amounted to RMB 22,873 thousand, with RMB 17,947 thousand attributable to owners of the parent Condensed Consolidated Statement of Comprehensive Income Key Data | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Loss for the Period and Total Comprehensive Loss | (22,873) | (18,337) | | Attributable to Owners of the Parent | (17,947) | (13,205) | | Attributable to Non-controlling Interests | (4,926) | (5,132) | Condensed Consolidated Statement of Financial Position [Assets and Liabilities Overview](index=19&type=section&id=Assets%20and%20Liabilities%20Overview) As of June 30, 2025, the Group reported total non-current assets of RMB 189,228 thousand, total current assets of RMB 245,903 thousand, and total current liabilities of RMB 272,675 thousand, resulting in net current liabilities of RMB (26,772) thousand Condensed Consolidated Statement of Financial Position Key Data | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Non-current Assets | 189,228 | 191,967 | | Total Current Assets | 245,903 | 285,405 | | Total Current Liabilities | 272,675 | 292,895 | | Net Current Liabilities | (26,772) | (7,490) | | Net Assets | 155,094 | 174,467 | | Total Equity | 155,094 | 174,467 | - Current liabilities exceeded current assets by approximately **RMB 26,772 thousand**, but the directors believe the Group will have sufficient bank financing and major shareholder support to prepare the financial statements on a going concern basis[54](index=54&type=chunk) Condensed Consolidated Statement of Changes in Equity [Equity Changes Overview](index=21&type=section&id=Equity%20Changes%20Overview) For the six months ended June 30, 2025, equity attributable to owners of the parent decreased from RMB 167,805 thousand to RMB 149,858 thousand, primarily due to a loss for the period of RMB 17,976 thousand Condensed Consolidated Statement of Changes in Equity Key Data | Metric | June 30, 2025 (RMB thousands) | January 1, 2024 (RMB thousands) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Parent at Beginning of Period | 167,805 | 210,387 | | Loss for the Period | (17,976) | (13,182) | | Exchange Differences on Translation of Foreign Operations | 29 | (23) | | Capital Contribution from Non-controlling Interests of a Subsidiary | – | – | | Equity Attributable to Owners of the Parent at End of Period | 149,858 | 197,182 | | Non-controlling Interests at End of Period | 5,236 | 15,885 | | Total Equity at End of Period | 155,094 | 213,067 | Condensed Consolidated Statement of Cash Flows [Cash Flow Overview](index=22&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2025, net cash used in operating activities was RMB (22,537) thousand, net cash from investing activities was RMB 1,509 thousand, and net cash used in financing activities was RMB (840) thousand, resulting in a net decrease in cash and cash equivalents of RMB (21,868) thousand Condensed Consolidated Statement of Cash Flows Key Data | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (22,537) | (28,956) | | Net Cash From/(Used in) Investing Activities | 1,509 | (927) | | Net Cash (Used in)/From Financing Activities | (840) | 1,549 | | Net Decrease in Cash and Cash Equivalents | (21,868) | (28,334) | | Cash and Cash Equivalents at Beginning of Period | 68,213 | 63,410 | | Cash and Cash Equivalents at End of Period | 46,345 | 35,076 | Notes to the Condensed Consolidated Financial Statements [1. Basis of Preparation](index=23&type=section&id=1.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards on a going concern basis, supported by sufficient bank financing and major shareholders despite net current liabilities - The condensed consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants[54](index=54&type=chunk) - As of June 30, 2025, the Group's current liabilities exceeded current assets by approximately **RMB 26,772,000**, but the directors believe there is sufficient bank financing and major shareholder support, thus preparing on a going concern basis[54](index=54&type=chunk) [2. Changes in Accounting Policies and Disclosures](index=23&type=section&id=2.%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) The financial information for this period adopted revised Hong Kong Financial Reporting Standards for the first time, with no significant financial impact or material changes to accounting policies - The financial information for this period adopted revised Hong Kong Financial Reporting Standards for the first time, including amendments to Hong Kong Accounting Standard 21 – Lack of Exchangeability[55](index=55&type=chunk)[56](index=56&type=chunk) - The adoption of these amendments had no significant financial impact on the condensed consolidated financial information, and there were no material changes to accounting policies[56](index=56&type=chunk) [3. Operating Segment Information](index=24&type=section&id=3.%20Operating%20Segment%20Information) The Group operates a single reportable segment: in-vitro diagnostic reagent products, with approximately 89% of revenue from mainland China customers and all non-current assets located in mainland China - The Group has only one reportable operating segment: the in-vitro diagnostic reagent products segment, which covers the manufacturing, sales, and distribution of various single/dual diagnostic reagent products[58](index=58&type=chunk) - For the six months ended June 30, 2025, approximately **89% of revenue** was derived from customers in mainland China, and all non-current assets are located in mainland China[59](index=59&type=chunk) - During the reporting period, no single customer contributed **10% or more** to the Group's revenue[60](index=60&type=chunk) [4. Revenue](index=24&type=section&id=4.%20Revenue) The Group's total revenue for the reporting period was RMB 95,815 thousand, primarily derived from the sale of in-vitro diagnostic reagent products, which accounted for RMB 93,928 thousand Revenue Analysis | Revenue Source | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Sale of in-vitro diagnostic reagent products | 93,928 | 133,049 | | Other services | 1,887 | 779 | | **Total Revenue** | **95,815** | **133,828** | [5. Loss from Operating Activities](index=25&type=section&id=5.%20Loss%20from%20Operating%20Activities) The Group's loss from operating activities was primarily influenced by the cost of inventories sold and services rendered, and depreciation and amortization expenses, totaling RMB 58,437 thousand and RMB 10,254 thousand respectively Components of Loss from Operating Activities | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of inventories sold and services rendered | 58,437 | 75,297 | | Exchange differences, net | (63) | 9 | | Depreciation of property, plant and equipment | 7,367 | 7,790 | | Depreciation of investment properties | 361 | 361 | | Depreciation of right-of-use assets | 1,444 | 1,505 | | Amortisation of other intangible assets | 1,082 | 1,562 | [6. Income Tax Expense](index=25&type=section&id=6.%20Income%20Tax%20Expense) The Group operates in China with a 25% corporate income tax rate, but the company and a subsidiary enjoy a 15% preferential rate as high-tech enterprises, resulting in an income tax expense of RMB 209 thousand for the period - The Group operates in China, where the corporate income tax rate is **25%**[64](index=64&type=chunk) - The company and one of its subsidiaries (CNBG Jinyu) enjoy a **15% preferential tax rate** as high-tech enterprises[64](index=64&type=chunk) Income Tax Expense | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Current – China | 209 | 2,212 | | Deferred | – | (43) | | **Total Tax Expense for the Period** | **209** | **2,169** | [7. Loss Per Share Attributable to Owners of the Company](index=26&type=section&id=7.%20Loss%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) For the six months ended June 30, 2025, the basic loss per share attributable to owners of the company was RMB 0.124, with diluted loss per share being the same due to no potential dilutive ordinary shares - The basic loss per share for the six months ended June 30, 2025, was **RMB 0.124**[67](index=67&type=chunk) - Loss per share is calculated based on the unaudited loss for the period attributable to the company's equity and the weighted average of **144,707,176 ordinary shares** outstanding during the period[67](index=67&type=chunk) - As the Group had no potentially dilutive ordinary shares outstanding during the reporting period, the diluted loss per share is the same as the basic loss per share[67](index=67&type=chunk) [8. Interim Dividend](index=26&type=section&id=8.%20Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[68](index=68&type=chunk) [9. Trade and Bills Receivables](index=27&type=section&id=9.%20Trade%20and%20Bills%20Receivables) As of June 30, 2025, the Group's total trade and bills receivables decreased to RMB 106,123 thousand from RMB 121,544 thousand at the end of 2024, with credit terms typically ranging from three to twelve months - The Group typically grants credit terms of **three months** to its customers, with some long-term customers receiving payment periods ranging from **four to twelve months**[70](index=70&type=chunk) Ageing Analysis of Trade and Bills Receivables | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 21,996 | 33,801 | | 4 to 6 months | 17,062 | 20,919 | | 7 to 12 months | 22,979 | 27,428 | | 1 to 2 years | 32,258 | 31,690 | | Over 2 years | 11,828 | 7,706 | | **Total** | **106,123** | **121,544** | [10. Trade Payables](index=28&type=section&id=10.%20Trade%20Payables) As of June 30, 2025, the Group's total trade payables decreased to RMB 71,965 thousand from RMB 87,108 thousand at the end of 2024, which are interest-free and typically settled within 30 to 90 days - Trade payables are interest-free and typically settled within **30 to 90 days** of the credit period[72](index=72&type=chunk) Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 9,286 | 21,543 | | 4 to 6 months | 10,772 | 7,390 | | 7 to 12 months | 11,911 | 11,494 | | 1 to 2 years | 14,056 | 33,946 | | Over 2 years | 25,940 | 12,735 | | **Total** | **71,965** | **87,108** | [11. Interest-Bearing Bank and Other Borrowings](index=28&type=section&id=11.%20Interest-Bearing%20Bank%20and%20Other%20Borrowings) As of June 30, 2025, the Group's total interest-bearing bank and other borrowings amounted to RMB 136,838 thousand, predominantly current bank loans, with secured bank loans totaling RMB 91,800 thousand Interest-Bearing Bank and Other Borrowings | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank loans (unsecured) | 42,608 | 53,764 | | Bank loans (secured) | 91,800 | 78,900 | | Other loans (unsecured) | – | 10,000 | | Other loans (secured) | 2,430 | 5,557 | | **Total Bank and Other Borrowings** | **136,838** | **148,221** | | Classified as current liabilities | (133,983) | (143,665) | | Non-current portion | 2,855 | 4,556 | [12. Share Capital](index=29&type=section&id=12.%20Share%20Capital) As of June 30, 2025, the company's total registered, issued, and fully paid share capital was RMB 144,707 thousand, comprising 80,421,033 domestic shares and 64,286,143 H shares, each with a par value of RMB 1 Share Capital Composition | Share Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Domestic Shares (80,421,033 shares) | 80,421 | 80,421 | | H Shares (64,286,143 shares) | 64,286 | 64,826 | | **Total Share Capital** | **144,707** | **144,707** | [13. Contingent Liabilities](index=29&type=section&id=13.%20Contingent%20Liabilities) As of June 30, 2025, the Group's counter-guarantee for a subsidiary's loan to a guarantee company remained at RMB 2,000,000, consistent with the end of 2024 - As of June 30, 2025, the Group's counter-guarantee to a guarantee company for a loan granted to a subsidiary was **RMB 2,000,000**[76](index=76&type=chunk) [14. Related Party Transactions](index=29&type=section&id=14.%20Related%20Party%20Transactions) During the reporting period, the Group engaged in related party transactions including technical service fees, product sales, and purchases, with some agreements terminating due to expiry or disposal of the related entity Significant Transactions with Related Parties | Transaction Type | Related Party | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Payment of technical service fees | Institute of Biophysics, Chinese Academy of Sciences | – | 250 | | Sale of products | Anhui Guoke Kangyi Medical Technology Co., Ltd. | – | 859 | | Purchase of products and materials | Anhui Guoke Kangyi Medical Technology Co., Ltd. | – | 750 | - The company's 20-year exclusive technical license agreement with the Institute of Biophysics expired in **December 2024**, and no further usage fees have been paid since then[83](index=83&type=chunk) - Anhui Guoke Kangyi Medical Technology Co., Ltd. was sold to an independent third party on **April 1, 2024**, thus terminating the ongoing connected transactions with that company[83](index=83&type=chunk) Unpaid Balances with Related Parties | Item | Related Party | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Other payables | Institute of Biophysics | 4,500 | 4,500 | | Trade payables | Anhui Guoke Kangyi Medical Technology Co., Ltd. | – | 290 | Key Management Personnel Remuneration | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Short-term employee benefits | 1,445 | 2,809 | | Post-employment benefits | 188 | 224 | | **Total** | **1,633** | **3,033** | [15. Approval of Financial Statements](index=31&type=section&id=15.%20Approval%20of%20Financial%20Statements) The Board of Directors approved and authorized the publication of the condensed financial statements on August 29, 2025 - The Board of Directors approved and authorized the publication of the condensed financial statements on **August 29, 2025**[82](index=82&type=chunk) Other Information [Directors', Supervisors' and Chief Executive's Interests in Shares and Underlying Shares](index=32&type=section&id=Directors%27%2C%20Supervisors%27%20and%20Chief%20Executive%27s%20Interests%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, Mr. Wu Lebin, Mr. Chen Peng, and Mr. Chen Zhengyong held domestic shares representing 2.42%, 7.83%, and 6.91% respectively of the company's total registered share capital Directors', Supervisors' and Chief Executive's Long Positions in the Company's Shares | Name | Number of Domestic Shares Held | Percentage of Company's Domestic Shares | Percentage of Company's Total Registered Share Capital | | :--- | :--- | :--- | :--- | | Mr. Wu Lebin | 3,500,878 | 4.35% | 2.42% | | Mr. Chen Peng | 11,330,334 | 14.09% | 7.83% | | Mr. Chen Zhengyong | 10,000,000 | 12.43% | 6.91% | - Save as disclosed above, no director, supervisor, or chief executive had any disclosable interests or short positions in the shares and underlying shares of the company or any of its associated corporations[84](index=84&type=chunk) [Substantial Shareholders' and Other Persons' Interests in Shares and Underlying Shares](index=33&type=section&id=Substantial%20Shareholders%27%20and%20Other%20Persons%27%20Interests%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, Beijing Pusa Asset Management Co., Ltd. was the largest shareholder, holding 38.93% of domestic shares, representing 21.64% of total registered share capital, with other significant shareholders also disclosed Substantial Shareholders' and Other Persons' Long Positions in the Company's Shares | Shareholder Name/Individual | Capacity and Nature of Interest | Number of Company Shares Held (Domestic Shares) | Number of Company Shares Held (H Shares) | Percentage of Relevant Class of Company Shares (Domestic Shares) | Percentage of Relevant Class of Company Shares (H Shares) | Percentage of Company's Total Registered Share Capital | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Pusa Asset Management Co., Ltd. | Directly beneficially owned | 31,308,576 | – | 38.93% | – | 21.64% | | Hong Kong Zhixin Investment Co., Ltd. | Directly beneficially owned | – | 27,256,143 | – | 42.40% | 18.84% | | Hainan Zhixin Investment Partnership (Limited Partnership) | Through controlled corporation | – | 27,256,143 | – | 42.40% | 18.84% | | Mr. Li Dongfeng | Through controlled corporation | – | 27,256,143 | – | 42.40% | 18.84% | | Mr. Yan Kang | Through controlled corporation | – | 27,256,143 | – | 42.40% | 18.84% | | Yunnan Shengneng Investment Partnership (Limited Partnership) | Directly beneficially owned | 10,939,314 | 6,780,000 | 13.60% | 10.55% | 12.24% | | Mr. Li Yangyixiong | Through controlled corporation | 10,939,314 | 6,780,000 | 13.60% | 10.55% | 12.24% | | Jingning Guoke Kangyi Enterprise Management Center (Limited Partnership) | Directly beneficially owned | 11,330,334 | – | 14.09% | – | 7.83% | | Sichuan CNBG Medical Devices Co., Ltd. | Directly beneficially owned | 10,000,000 | – | 12.43% | – | 6.91% | | Zhongshi Jianyue Co., Ltd. | Directly beneficially owned | – | 3,800,000 | – | 5.91% | 2.63% | | Wang Kuan Cheng Education Fund | Through controlled corporation | – | 3,800,000 | – | 5.91% | 2.63% | - Hong Kong Zhixin Investment Co., Ltd. is wholly owned by Hainan Zhixin Investment Partnership (Limited Partnership), which is approximately **36.01%** owned by Mr. Yan Kang and Mr. Li Dongfeng, respectively[89](index=89&type=chunk) - Jingning Guoke Kangyi Enterprise Management Center (Limited Partnership) is **99.5%** owned by Mr. Chen Peng, the company's President[89](index=89&type=chunk) - Sichuan CNBG Medical Devices Co., Ltd. is approximately **77.94%** owned by Mr. Chen Zhengyong[89](index=89&type=chunk) [Directors' and Supervisors' Rights to Acquire Shares or Debentures](index=35&type=section&id=Directors%27%20and%20Supervisors%27%20Rights%20to%20Acquire%20Shares%20or%20Debentures) For the six months ended June 30, 2025, neither the company nor its subsidiaries granted any rights or options to directors, supervisors, or their associates to acquire the company's shares or debentures, nor were such rights exercised - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries granted any rights or options to directors or supervisors or their respective associates to acquire any shares or debentures of the company, nor were such rights exercised[92](index=92&type=chunk) [Competing Interests](index=35&type=section&id=Competing%20Interests) During the reporting period and up to the date of this report, no directors, supervisors, substantial shareholders, or their close associates held interests in any business competing with the Group or had any conflicts of interest - During the reporting period and up to the date of this report, no director, supervisor, substantial shareholder of the company, or any of their respective close associates had any interest in any business that competes or may compete, directly or indirectly, with the Group's business, nor had any actual or potential conflict of interest with the Group[93](index=93&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=35&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[94](index=94&type=chunk) [Directors' Securities Transactions](index=35&type=section&id=Directors%27%20Securities%20Transactions) The Group has adopted a standard code for directors' securities transactions and confirmed that all directors complied with the required dealing standards throughout the reporting period - The Group has adopted a standard code for directors' securities transactions in accordance with Rules 5.48 to 5.67 of the GEM Listing Rules[95](index=95&type=chunk) - Following specific inquiries made to the directors, the company confirmed that all directors complied with the required dealing standards throughout the reporting period[95](index=95&type=chunk) [Audit Committee](index=36&type=section&id=Audit%20Committee) The company's Audit Committee, established in compliance with GEM Listing Rules, reviews and oversees financial reporting and internal control systems, and has reviewed the Group's unaudited condensed consolidated financial statements - The company has established an Audit Committee with written terms of reference in compliance with the GEM Listing Rules[96](index=96&type=chunk) - The primary responsibilities of the Audit Committee are to review and oversee the company's financial reporting process and internal control systems[96](index=96&type=chunk) - The Audit Committee, comprising four independent non-executive directors with Mr. Fan Xiaoliang as Chairman, has reviewed the Group's unaudited condensed consolidated financial statements for the reporting period[96](index=96&type=chunk) [Corporate Governance](index=36&type=section&id=Corporate%20Governance) The company complied with all applicable code provisions of the Corporate Governance Code, except for code provision D.2.5 (internal audit function), which is fulfilled through board-established arrangements and external consultants - The company complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the GEM Listing Rules, except for code provision D.2.5 (internal audit function)[97](index=97&type=chunk) - The Group decided not to establish an internal audit department for the time being but has implemented sufficient measures to fulfill the internal audit function, including financial reporting and internal control principles established by the Board, and engaging external consultants for internal reviews[97](index=97&type=chunk) [Update on Directors' Information under Rule 17.50A(1) of the GEM Listing Rules](index=37&type=section&id=Update%20on%20Directors%27%20Information%20under%20Rule%2017.50A%281%29%20of%20the%20GEM%20Listing%20Rules) This section updates directors' information since the 2024 annual report, including Mr. Chen Zhengyong's appointment as Chairman and Mr. Li Zhonghua's re-designation as Executive Director and Vice Chairman - Mr. Chen Zhengyong was appointed as the Chairman of the Board, an authorized representative of the company, and the Chairman of the Nomination Committee, effective from May 30, 2025, and July 15, 2025, respectively[101](index=101&type=chunk) - Mr. Li Zhonghua was re-designated from a non-executive director to an executive director and appointed as the Vice Chairman of the Board, effective from May 30, 2025[101](index=101&type=chunk)

中期業績公佈 截至二零二五年六月三十日止六個月 香港聯合交易所有限公司（「聯交所」）GEM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出投資決定。GEM 的較高風險及其他特色表示GEM 較適合 專業及其他老練投資者。 由於GEM上市公司新興的性質所然，在GEM買賣的證券可能會較於聯交所主板買 賣之證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通 量的市場。 香港交易及結算所有限公司及聯交所對本公佈的內容概不負責，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。 本公佈乃遵照GEM證券上市規則（「《GEM上市規則》」）的規定提供有關中生北 控生物科技股份有限公司（「本公司」，與其附屬公司統稱為「本集團」）的資料，本 公司各董事（「董事」）願就本公佈共同及個別承擔全部責任。各董事經作出一切合 理查詢後確認，就彼等所深知及確信：(1)本公佈所載資料在各重大方面均屬準確 完整，且無誤導 ...

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公佈之 內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不會就本 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之任何損失承擔任何責任。 董事會會議通告 中生北控生物科技股份有限公司（「本公司」）的董事（「董事」）會（「董事會」）謹此 宣佈，董事會會議將於二零二五年八月二十九日（星期五）上午九時正以通訊方式 召開，以處理下列事項： 承董事會命 中生北控生物科技股份有限公司 公司秘書 董渙樟 中國，北京，二零二五年八月十八日 1 1. 省覽及批准本公司及其附屬公司（「本集團」）截至二零二五年六月三十日止 六個月的未經審計綜合中期業績； 2. 批准於聯交所GEM 網站刊登本集團截至二零二五年六月三十日止六個月的 中期業績公告； 3. 考慮派付中期股息（如有）； 4. 考慮暫停辦理本公司過戶登記手續（如需要）；及 5. 處理任何其它事項。 於本公佈日期，董事會成員包括： 主席兼執行董事 陳正永先生 副主席兼執行董事 李忠華先生 總裁兼執行董事 陳鵬先生 副主席兼非執行董事 楊鵬先生 非執行董事 高光俠博士及沈勝博士 獨立非執行董事 ...

FF301 | 144,707,176 | | --- | | RMB | | 本月底法定/註冊股本總額： | | 2. 股份分類 | 普通股 | 股份類別 | | 其他類別 (請註明) | 於香港聯交所上市 (註1) | | 否 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | N/A | 說明 | 內資股 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 80,421,033 | RMB | | 1 RMB | | 80,421,033 | | 增加 / 減少 (-) | | | 0 | | | RMB | | 0 | | 本月底結存 | | | 80,421,033 | RMB | | 1 RMB | | 80,421,033 | 公司名稱: 中生北控生物科技股份有限公司（於中華人民共和國註冊成立的股份有限公司） 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H ...

Financial Performance - The annual operating revenue reached approximately RMB 263.1 million, a decrease of about 9.0% compared to the previous year[16] - The annual loss amounted to approximately RMB 56.9 million, compared to a loss of RMB 19.2 million in the previous year[16] - 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[34] - Gross profit for the year was approximately RMB 108.4 million, down about 14.9% from RMB 127.4 million last year, resulting in a gross margin of approximately 41.2% compared to 44.1% in the previous year[35] - The company reported a net loss of approximately RMB 56.9 million for the year, compared to a loss of approximately RMB 19.2 million in the previous year, primarily due to declines in operating revenue and gross profit[41] - Basic and diluted loss per share for the year was RMB (0.294), compared to RMB (0.080) in the previous year, reflecting a worsening financial position[198] - Financial asset impairment losses increased to RMB 6,528,000 from RMB 712,000 in 2023, highlighting growing concerns over asset quality[198] Dividend Policy - The company did not recommend the distribution of any dividends for the fiscal year ending December 31, 2024, consistent with the previous year[19] - The group reported no dividends for the fiscal year ending December 31, 2024, consistent with the previous year[121] - As of December 31, 2024, the company recorded a cumulative loss of approximately RMB 53,196,000, with no distributable reserves available for shareholders, compared to approximately RMB 14,433,000 as of December 31, 2023[129] Market Environment - The IVD industry experienced significant changes, with the end of COVID-19 testing and a shift in the market landscape, leading to a decline in product sales prices[20] - Despite challenges, the demand for disease testing is increasing due to an aging population and rising chronic disease rates, supported by increased government investment in health[20] - The ongoing tightening of cost control policies under the national medical insurance system has further compressed the company's profit margins[20] - The company faced a 30%-40% average price drop in key biochemical diagnostic reagent products due to centralized procurement, impacting overall revenue[28] - The demand for chronic disease diagnostic IVD products is increasing due to an aging population, although the company needs to enhance market promotion and product innovation to keep pace[29] Research and Development - R&D investment for the year was approximately RMB 33.4 million, with several new diagnostic systems and products approved for market, including nine newly registered products[26] - Research and development expenses totaled approximately RMB 33.4 million, a decrease of about 6.7% from RMB 35.8 million in the previous year[38] - The company is committed to increasing R&D investment and accelerating the development of new products, particularly in chemiluminescence reagents and molecular diagnostics[45] - The company is focused on enhancing its research and development capabilities to mitigate risks associated with technological obsolescence in the IVD industry[100] Strategic Initiatives - The company is exploring new opportunities for growth amid the crisis, driven by technological innovation in the IVD sector[20] - The company plans to strengthen collaborations with research institutions and universities to boost innovation capabilities and attract talent[22] - The company is actively expanding its market channels both domestically and internationally, with a focus on Southeast Asia, where it has successfully entered the market with biochemical diagnostic reagent products[33] - The company aims to strengthen customer relationships by providing personalized solutions and one-stop services, enhancing customer satisfaction and product stickiness[33] - The company has a strategic plan to explore potential mergers and acquisitions to strengthen its market position and product offerings[167] Corporate Governance - The board of directors is responsible for overseeing the company's management, business strategy, and financial performance[60] - The board held five meetings in 2024 with an average attendance rate of 96%[66] - The company has established mechanisms to ensure independent opinions from non-executive directors, including annual reviews of their contributions[62] - The company has adopted a standard code for securities trading by directors, ensuring compliance with GEM Listing Rules[69] - The company has maintained a robust corporate governance system, adhering to all code provisions except for the internal audit function, which is currently not established due to the group's scale and operational structure[148] Risk Management - The company has established a comprehensive risk management system to identify and manage key operational risks[99] - The board regularly reviews the effectiveness of internal controls and risk management systems to protect the interests of the company and its shareholders[97] - The company has implemented measures to manage accounts receivable effectively, reducing the risk of bad debts as sales scale increases[102] - The company has established an emergency mechanism to respond to natural disasters and public health events, ensuring rapid response capabilities[102] Employee and Talent Management - The total employee cost for the year was approximately RMB 103 million, up from RMB 99 million in 2023[53] - The company employed a total of 499 full-time employees as of December 31, 2024, down from 537 in 2023[53] - The company is committed to attracting and retaining high-quality talent to maintain its competitive advantage in the IVD industry[101] - The company will continue to focus on training and long-term development opportunities for female employees[81] Financial Compliance - The board confirmed compliance with all relevant laws and regulations that significantly impact the group's business and operations during the year[130] - The company has implemented measures to ensure compliance with the GEM Listing Rules and relevant laws and regulations[57] - The independent non-executive directors confirmed their independence as per the GEM Listing Rules[134]

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]