Financial Performance - The company reported a significant increase in revenue, achieving a total of RMB 150 million for the first half of 2022, representing a 25% growth compared to the same period last year[22]. - The company has set a future outlook with a revenue target of RMB 350 million for the full year 2022, indicating an expected growth rate of approximately 20%[22]. - The gross margin is under pressure due to increased competition and regulatory scrutiny in the IVD sector[27]. - The company reported a gross margin of 45% for the first half of 2022, reflecting improved cost management and pricing strategies[22]. - For the three months ended June 30, 2022, the operating revenue was RMB 83,876 thousand, a decrease of 10.5% compared to RMB 93,771 thousand for the same period in 2021[40]. - The gross profit for the six months ended June 30, 2022, was RMB 70,055 thousand, down 13.6% from RMB 81,034 thousand in the same period of 2021[40]. - The operating profit for the three months ended June 30, 2022, was RMB 3,756 thousand, a decline of 51.5% compared to RMB 7,743 thousand in the same period of 2021[40]. - The net profit attributable to the parent company for the six months ended June 30, 2022, was RMB 578 thousand, a decrease of 68.5% from RMB 1,836 thousand in the same period of 2021[44]. - The total comprehensive income for the six months ended June 30, 2022, was RMB 4,767,000, compared to RMB 4,154,000 for the same period in 2021, indicating a growth of approximately 14.7%[55]. Market Expansion and Product Development - User data indicates that the company has expanded its customer base, now serving over 1,200 hospitals and medical institutions across more than 30 provinces and municipalities in China[22]. - New product development includes the launch of three innovative diagnostic reagents, which are anticipated to contribute an additional RMB 30 million in revenue by the end of 2022[22]. - The company is actively pursuing market expansion strategies, including partnerships with local distributors to enhance its market presence in under-served regions[22]. - The company aims to enhance its product line and market share through continuous development and innovative marketing strategies[24]. Research and Development - A merger and acquisition strategy is in place, with plans to acquire a smaller biotech firm to enhance R&D capabilities and product offerings by Q4 2022[22]. - The company obtained six product patents during the reporting period, including stable homocysteine detection kits and mass spectrometry calibration products[28]. - Research and development expenses for the six months ended June 30, 2022, were RMB 12,017 thousand, slightly down from RMB 12,503 thousand in the same period of 2021[40]. Financial Position - The total assets as of June 30, 2022, amounted to RMB 390,914 thousand, a decrease from RMB 408,076 thousand as of December 31, 2021[50]. - The total liabilities as of June 30, 2022, were RMB 344,042 thousand, down from RMB 389,031 thousand as of December 31, 2021[51]. - The cash and cash equivalents as of June 30, 2022, were RMB 36,122 thousand, a decrease from RMB 44,469 thousand as of December 31, 2021[50]. - The company’s non-current assets totaled RMB 202,077 thousand as of June 30, 2022, an increase from RMB 199,685 thousand as of December 31, 2021[50]. - The company reported a net decrease in cash and cash equivalents of RMB 8,347,000 for the six months ended June 30, 2022, compared to a decrease of RMB 22,599,000 in the same period of 2021[57]. - The company’s effective tax rate for the period was 15%, benefiting from high-tech enterprise status, compared to the standard rate of 25% in China[74]. Employee and Management - The total employee cost for the first half of 2022 was approximately RMB 41.2 million, an increase from RMB 38.6 million in the same period last year[37]. - The company employed approximately 487 full-time employees as of June 30, 2022, up from 421 at the end of 2021[37]. - Total remuneration for key management personnel increased to RMB 3,486 thousand in 2022 from RMB 2,985 thousand in 2021, marking a rise of approximately 16.8%[94]. Corporate Governance and Risk Management - The company has established an audit committee to review and supervise financial reporting procedures and internal control systems[114]. - The company has complied with all corporate governance code provisions during the reporting period, except for the internal audit function as per code provision D.2.5[115]. - The company has engaged external consultants to conduct internal reviews as part of its risk management and internal control measures[118]. - The company has a commitment to maintaining robust corporate governance and risk management practices[115]. Challenges and Market Conditions - In the first half of 2022, the company faced challenges due to the ongoing COVID-19 pandemic, impacting sales and revenue in the reagent business[24]. - The IVD market in China is expected to grow at a compound annual growth rate of 11% over the next five years, reaching a scale of RMB 130 billion by 2025[27]. - The domestic market share of fully automated biochemical analyzers has surpassed 70%, indicating successful import substitution[27]. - The company plans to leverage its existing technological and quality advantages to navigate the challenging market environment in the second half of 2022[27].

Financial Performance - The company's revenue for the first quarter of 2022 was RMB 88,560 thousand, representing an increase of 9.2% compared to RMB 80,894 thousand in the same period of 2021[17] - Gross profit for the first quarter of 2022 was RMB 34,688 thousand, with a gross margin of approximately 39.2%, compared to RMB 35,304 thousand in the first quarter of 2021[17] - The net profit for the first quarter of 2022 was RMB 2,118 thousand, a significant increase from RMB 405 thousand in the same period of 2021[17] - The company’s operating profit for the first quarter of 2022 was RMB 5,393 thousand, compared to RMB 4,100 thousand in the first quarter of 2021[17] - The company reported a total comprehensive income of RMB 2,132 thousand for the first quarter of 2022, compared to RMB 421 thousand in the same period of 2021[20] - The company’s financial costs for the first quarter of 2022 were RMB 1,290 thousand, down from RMB 1,842 thousand in the same period of 2021[17] - The company reported a tax expense of RMB 1,091,000 for the three months ended March 31, 2022, compared to RMB 1,071,000 for the same period in 2021, reflecting a slight increase of 1.87%[30] - The total tax expense for the current period reflects the preferential tax rate of 15% for high-tech enterprises, compared to the standard rate of 25% in China[30] Research and Development - Research and development expenses for the first quarter of 2022 were RMB 5,074 thousand, slightly lower than RMB 5,800 thousand in the first quarter of 2021[17] - The company obtained five patent authorizations during the reporting period, enhancing its product offerings in areas such as vitamin D testing and uric acid measurement[43] Business Focus and Market Dynamics - The company continues to focus on the production, sales, and distribution of in vitro diagnostic reagents as its main business activity[23] - The in vitro diagnostic industry is experiencing significant growth, with biochemical and immunodiagnostic reagents accounting for over 50% of market demand, driven by the need for routine medical testing[40] - The company anticipates increased competition in the in vitro diagnostic market due to evolving industry dynamics and heightened market concentration[40] - The company is committed to providing high-quality and comprehensive services to its customers, aiming for product, market, and management upgrades[41] - The company is focusing on strengthening its business foundation and adjusting operational strategies to enhance service capabilities and innovate cooperation models[41] Shareholder Information - As of March 31, 2022, Mr. Chen Peng holds 10,000,000 shares, representing 12.43% of the domestic shares and 6.91% of the total registered capital[47] - Beijing Puxi Asset Management Co., Ltd. directly holds 31,308,576 shares, accounting for 38.93% of the domestic shares and 21.64% of the total registered capital[49] - Yunnan Shengneng Investment Partnership holds 12,269,648 domestic shares, which is 15.26% of the domestic shares and 13.16% of the total registered capital[49] - The company has a significant shareholder structure, with Beijing Holdings Limited holding 27,256,143 H shares, representing 42.40% of the H shares[49] - Mr. Li Yang holds 1,050,263 shares directly, which is 1.31% of the domestic shares[49] Corporate Governance - The company has adopted a code of conduct for directors regarding securities trading, ensuring compliance with GEM Listing Rules[56] - The company has confirmed that all directors complied with the standards of conduct for securities trading during the reporting period[56] - The report indicates no new strategies or market expansions were disclosed during the earnings call[51] - The company established an audit committee on February 10, 2006, to review and supervise financial reporting procedures and internal control systems[61] - As of March 31, 2022, the company complied with all provisions of the Corporate Governance Code, except for provision D.2.5[62] - The company decided not to establish an internal audit department due to its scale and simple operational structure, but has implemented measures to fulfill internal audit functions[63] - The board has engaged external consultants to conduct internal reviews as determined by the audit committee[63] - The board will periodically review the necessity of establishing an internal audit function and may form an internal audit team if needed[63] Dividends - The company did not recommend the distribution of an interim dividend for the three months ended March 31, 2022, consistent with the previous year[35] Earnings Per Share - The earnings per share for the first quarter of 2022 were RMB (0.01), consistent with the same period in 2021[17] - The basic loss per share attributable to ordinary equity holders of the parent was calculated based on a weighted average of 144,707,176 shares for both the three months ended March 31, 2022, and 2021, with no adjustments for potential dilution[31]

Financial Performance - The company's operating revenue for the year reached approximately RMB 348 million, an increase of 7% compared to the previous year[22]. - The company's profit for the year was RMB 32 million, a significant recovery from a loss of RMB 7 million in the previous year[26]. - Gross profit for the reporting period was RMB 144 million, up 30% year-on-year, with a gross margin of 41% (2020: 34%)[48]. - The group reported a profit of approximately RMB 6,925,000 as of December 31, 2021, with no dividends recommended for the year[146][155]. - The loss attributable to the company's owners was RMB 1.14 million, down from a profit of RMB 2.72 million in the previous year, primarily due to inventory impairment losses[54]. Dividend Policy - The board of directors did not recommend the distribution of any dividends for the year ended December 31, 2021[22]. - The company has adopted a dividend policy to allow shareholders to share in the company's profits, contingent on stable earnings and no significant investments or commitments[125]. Market and Industry Focus - The company is focusing on enhancing its product offerings and expanding its market presence in the biotechnology sector[28]. - The external environment for the in-vitro diagnostic industry remains challenging due to the ongoing impact of the COVID-19 pandemic and intensified market competition[33]. - The domestic in-vitro diagnostic market is dominated by foreign companies, which hold over 50% market share, particularly in high-end hospitals[41]. - The IVD industry is expected to face increased competition and consolidation, necessitating a focus on innovation and product differentiation[59]. Research and Development - The company continues to focus on the development and introduction of medical diagnostic products, optimizing production processes to reduce costs and increase revenue[34]. - The total research and development costs for the year amounted to RMB 24.9 million, a decrease of 12% compared to RMB 28.2 million in 2020[51]. - The company is exploring innovative R&D mechanisms and has reformed its project operation mechanisms to enhance performance evaluation[34]. Corporate Governance - The board of directors consists of 7 to 9 members, including executive, non-executive, and independent non-executive directors, all of whom are responsible for overseeing the group's management and strategic direction[77]. - The company has implemented measures to ensure compliance with the GEM Listing Rules and relevant laws and regulations, despite not establishing an internal audit department due to its operational scale[76]. - The board has established mechanisms to ensure independent opinions and inputs, including the recruitment of independent non-executive directors with relevant experience[82]. - The board confirmed that the current board structure is reasonable and does not require adjustments after evaluating the skills and experience of existing directors[110]. Employee and Management Information - As of December 31, 2021, the group employed a total of 421 full-time employees in Hong Kong and China, a decrease from 450 in 2020[70]. - The total employee cost for the year ended December 31, 2021, was approximately RMB 73.04 million, compared to RMB 69.36 million in 2020, reflecting an increase of about 4.9%[70]. - The company has adopted a recruitment policy that considers diversity perspectives, including gender diversity, for senior management positions[86]. Financial Position and Debt Management - The net debt decreased by approximately RMB 30 million compared to the previous year, mainly due to cash flows from financing activities during the year[64]. - The cash and bank balances at the end of the year were RMB 4.4 million, slightly down from RMB 4.5 million in 2020[62]. - The net debt to capital ratio improved to 59% from 75% in the previous year[62]. Compliance and Transparency - The company is committed to maintaining transparency and accuracy in its financial reporting and disclosures[4]. - The company has maintained compliance with the GEM Listing Rules and all relevant laws and regulations[38]. - The company is committed to maintaining transparency and open communication with shareholders and investors through various channels[131]. Shareholding Structure - The company has a significant concentration of shareholding, with major shareholders holding substantial percentages of both domestic and H shares[171]. - The company has achieved a public float of over 25% of its total issued shares as of December 31, 2021[175]. Audit and Financial Reporting - The auditor's fee for audit services was approximately RMB 1,500,000 for the year ended December 31, 2021[123]. - The financial statements for the year 2021 were deemed to accurately reflect the company's financial position and operating results, supported by an unqualified auditor's report from Ernst & Young[189].

Financial Performance - For the three months ended September 30, 2021, the company reported revenue of RMB 87,072,000, a decrease of 7.4% compared to RMB 94,171,000 for the same period in 2020[21] - Gross profit for the same period was RMB 40,262,000, resulting in a gross margin of 46.2%[21] - The net profit for the three months ended September 30, 2021, was RMB 6,662,000, compared to RMB 2,624,000 for the same period in 2020, representing a significant increase of 153.5%[21] - For the nine months ended September 30, 2021, total revenue reached RMB 261,737,000, an increase of 16.0% from RMB 225,554,000 in the same period of 2020[21] - The company reported a net profit of RMB 11,829,000 for the nine months ended September 30, 2021, compared to a loss of RMB 12,417,000 in the same period of 2020[21] - Basic and diluted earnings per share for the three months ended September 30, 2021, were RMB 0.04, up from RMB 0.02 in the same period of 2020[21] - The company’s operating profit for the three months ended September 30, 2021, was RMB 9,410,000, compared to RMB 3,909,000 for the same period in 2020, indicating a growth of 140.3%[21] - The total comprehensive income for the three months ended September 30, 2021, was RMB 6,638,000, compared to RMB 2,606,000 for the same period in 2020[23] - For the nine months ended September 30, 2021, the company's revenue reached RMB 1,844 million, a significant increase from RMB 298 million in the same period of 2020, representing a growth of approximately 518%[32] - The company reported a basic earnings per share of RMB 7,831 thousand for the nine months ended September 30, 2021, compared to a loss of RMB 9,862 thousand in the same period of 2020[33] Research and Development - The company’s research and development expenses for the three months ended September 30, 2021, were RMB 5,373,000, a decrease from RMB 6,268,000 in the same period of 2020[21] - The company aims to enhance product quality and develop new testing projects in line with industry advancements, while also expanding market share in the biochemical diagnostics sector[46] - The company has obtained a patent for an immunoturbidimetric reagent kit and renewed registrations for 30 existing products during the reporting period[46] Market Strategy - The company aims to expand its market presence and enhance product offerings in the upcoming quarters[21] - The company plans to optimize supplier relationships and direct procurement to continuously reduce raw material and overall costs[44] - The increase in profit is primarily attributed to the rise in revenue leading to higher gross profit margins[46] - The company is focusing on strengthening collaboration with internationally renowned enterprises and integrating resources to enhance market share[46] - The competitive landscape in the domestic IVD market is intensifying, necessitating innovation and resource utilization to improve overall corporate strength[43] Shareholding Structure - As of September 30, 2021, 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[49] - Mr. Wang Tao holds 24,506,143 shares, accounting for 30.47% of the company's domestic shares and 16.93% of the total registered capital[49] - Mr. Zhou Jie holds 150,000 shares, which is 0.19% of the company's domestic shares and 0.10% of the total registered capital[49] - 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[52] - Mr. Xiao Yonggang directly holds 7,763,505 shares, accounting for 9.65% of the domestic shares and 5.36% of the total registered capital[52] - Beijing Holdings Limited holds 27,256,143 H shares, representing 42.40% of the H shares and 18.84% of the total registered capital[52] - Yunnan Shengneng Investment Partnership holds 6,780,000 H shares, accounting for 10.55% of the H shares and 4.69% of the total registered capital[54] Corporate Governance - The company has not declared an interim dividend for the nine months ended September 30, 2021, consistent with the previous year[39] - The company has not purchased, sold, or redeemed any of its listed securities during the nine months ending September 30, 2021[59] - The company has established an audit committee to review and supervise its financial reporting procedures and internal control systems[62] - The company has complied with all provisions of the GEM Listing Rules Corporate Governance Code during the period ending September 30, 2021[63]

Financial Performance - BIOSINO reported a significant increase in revenue, achieving RMB 150 million for the first half of 2021, representing a growth of 25% compared to the same period last year[27]. - The company achieved revenue of approximately RMB 174.7 million for the six months ended June 30, 2021, representing a growth of about 33% compared to RMB 131.4 million in the same period last year[36]. - The company’s total revenue for the six months ended June 30, 2021, was RMB 179,187,000, an increase from RMB 162,078,000 in the same period of 2020[72]. - Operating revenue for the three months ended June 30, 2021, was RMB 93,771 thousand, an increase of 11.7% from RMB 84,294 thousand in the same period of 2020[61]. - Gross profit for the six months ended June 30, 2021, reached RMB 81,034 thousand, up 73.4% from RMB 46,716 thousand in the same period of 2020[61]. - The profit attributable to shareholders was approximately RMB 1.8 million, a significant turnaround from a loss of RMB 12.3 million in the same period last year[36]. - The net profit attributable to the parent company for the three months ended June 30, 2021, was RMB 2,488 thousand, compared to RMB 3,491 thousand in the same period of 2020, reflecting a decrease of 28.8%[64]. - The company reported a significant increase in operating profit, with a net operating cash flow of RMB 25,353,000 compared to a loss of RMB 9,290,000 in the previous year[74]. Market Position and Strategy - The company expanded its distribution network to over 600 distributors across more than 30 provinces and municipalities in China, enhancing its market reach[28]. - BIOSINO aims to enhance its competitiveness by adhering to principles of innovation, quality, and legal operation, which are central to its business strategy[28]. - The company is actively pursuing new product development and technological advancements to strengthen its market position[27]. - The company is focusing on enhancing product quality standards and exploring new marketing models to adapt to market changes[37]. - The company plans to strengthen its sales team and improve after-sales service capabilities to enhance brand influence and market competitiveness[37]. - The domestic IVD market is expected to continue expanding due to increasing health awareness and improvements in medical quality and technology[44]. - The introduction of policies supporting the medical device and IVD industry is expected to further drive rapid development in the domestic market[40]. - The company is actively seeking new business growth points and expanding revenue sources to regain its leading position in the industry[51]. Research and Development - The company is focused on research and development, leveraging the strong academic background of its management team, which includes several university professors and PhDs[28]. - The company is focused on enhancing the quality of existing products and developing new testing projects driven by industry technological advancements[51]. - The company aims to improve its reagent and instrument innovation capabilities and medical diagnostic service levels to enhance overall competitiveness[51]. - The company completed 71 product renewal registrations and obtained 36 first-class filing certificates for mass spectrometry sample pretreatment and cleaning products during the reporting period[49]. - The company has received four product patents, including a stable biochemical composite calibrator and its preparation method, and an immunoturbidimetric assay kit[49]. Financial Position - As of June 30, 2021, the company's cash and bank balance was approximately RMB 22.85 million, down from RMB 45.45 million on December 31, 2020[52]. - The company secured bank loans amounting to approximately RMB 95 million, with collateral provided by properties valued at approximately RMB 24.47 million and RMB 2.45 million[54]. - Total assets as of June 30, 2021, amounted to RMB 383,492 thousand, slightly down from RMB 386,516 thousand as of December 31, 2020[68]. - Current liabilities totaled RMB 368,933 thousand as of June 30, 2021, compared to RMB 378,866 thousand as of December 31, 2020, indicating a decrease of 2.5%[70]. - The company reported a net asset value of RMB 201,456 thousand as of June 30, 2021, an increase from RMB 196,271 thousand as of December 31, 2020[70]. - The company’s cash and cash equivalents decreased to RMB 22,854 thousand as of June 30, 2021, from RMB 45,453 thousand as of December 31, 2020[68]. - The net cash inflow from operating activities for the six months ended June 30, 2021, was RMB 25,353,000, compared to a net cash outflow of RMB 9,290,000 for the same period in 2020[74]. Employee and Management - The total employee cost for the six months ended June 30, 2021, was approximately RMB 38.6 million, compared to RMB 39.31 million in the same period of 2020[57]. - As of June 30, 2021, the company employed approximately 415 full-time employees, a decrease from about 450 employees as of December 31, 2020[57]. - Total remuneration for key management personnel increased to RMB 2,985,000 for the six months ended June 30, 2021, compared to RMB 2,152,000 in the previous year[107]. Shareholder Information - The major shareholder, Beijing Saipu Asset Management Co., Ltd., is a wholly-owned subsidiary of the Chinese Academy of Sciences, providing a strong foundation for the company's research capabilities[27]. - Beijing Puxi Asset Management Co., Ltd. holds 31,308,576 shares, representing 38.93% of the domestic shares and 21.64% of the total registered capital[29]. - Mr. Xiao Yonggang directly owns 7,763,505 shares, accounting for 9.65% of the domestic shares and 5.36% of the total registered capital[29]. - Beijing Holdings Limited holds 27,256,143 H shares, which is 42.40% of the H shares and 18.84% of the total registered capital[29]. - Yunnan Shengneng Investment Partnership holds 6,780,000 H shares, representing 10.55% of the H shares and 4.69% of the total registered capital[29]. - Chung Shek Enterprises Company Limited owns 3,800,000 H shares, accounting for 5.91% of the H shares and 2.63% of the total registered capital[29].

Financial Performance - For the first quarter of 2021, the company reported revenue of RMB 80,894,000, a significant increase of 72% compared to RMB 47,089,000 in the same period of 2020[14] - The gross profit for the first quarter of 2021 was RMB 35,304,000, compared to RMB 14,311,000 in the first quarter of 2020, reflecting a gross margin improvement[14] - The net profit for the first quarter of 2021 was RMB 405,000, a recovery from a net loss of RMB 17,464,000 in the same quarter of the previous year[14] - The company’s operating loss decreased to RMB 1,842,000 in the first quarter of 2021 from a loss of RMB 2,723,000 in the same quarter of 2020[14] - The total comprehensive income for the first quarter of 2021 was RMB 421,000, compared to a loss of RMB 17,531,000 in the same period of 2020[16] - The company reported a basic and diluted loss per share of RMB 0.01 for the first quarter of 2021, an improvement from a loss of RMB 0.11 per share in the same quarter of 2020[14] - The loss attributable to shareholders for the three months ended March 31, 2021, was RMB 0.65 million, a 96% reduction from a loss of RMB 15.80 million in the same period last year[36] - The total comprehensive income for the three months ended March 31, 2021, was a loss of RMB 15.86 million, reflecting the impact of operational challenges[31] Research and Development - The company incurred research and development expenses of RMB 5,800,000 in the first quarter of 2021, compared to RMB 5,279,000 in the same period of 2020[14] - The company is committed to ongoing research and development to innovate and improve its product line[19] - The company is focusing on the development of in vitro diagnostic products and services, aiming to enhance its competitive edge through independent research and development[40] - The company aims to enhance its product quality and continuously develop new testing projects in response to industry technological advancements[40] Market Presence and Strategy - The company aims to continue expanding its market presence and enhancing its product offerings in the in vitro diagnostic sector[19] - The domestic in vitro diagnostic reagent market still sees over 50% demand from biochemical and immunodiagnostic reagents, indicating a significant market share[38] - The company anticipates that the domestic health industry will continue to grow due to factors such as an aging population and increased health awareness[37] Corporate Governance - The company has complied with all provisions of the Corporate Governance Code, except for specific provisions A.1.8 and C.2.5[55] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated income statement for the period[54] - The company confirms that all directors have complied with the standards of conduct for securities trading during the reporting period[50] - As of March 31, 2021, there are no reported interests or conflicts of interest among directors, supervisors, and management that could compete with the company's business[52] Shareholder Information - As of March 31, 2021, Mr. Wu Le Bin holds 3,500,878 shares, representing 4.35% of the company's domestic shares and 2.42% of the total registered capital[43] - Major shareholder Beijing Puxi Asset Management Co., Ltd. owns 31,308,576 domestic shares, accounting for 38.93% of the domestic shares and 21.64% of the total registered capital[45] - Mr. Wang Tao directly holds 24,506,143 shares, which is 30.47% of the domestic shares and 16.93% of the total registered capital[45] Internal Controls and Risk Management - The company has decided not to establish an internal audit department due to its scale and operational structure, but has implemented measures for risk management and internal control[59] - The company is currently reviewing insurance quotes to purchase liability insurance for its directors within 2021[58] Dividend Policy - The company does not recommend the distribution of an interim dividend for the three months ended March 31, 2021[32] Product Registration - The company completed the continuation registration of 67 products, including the lipoprotein (a) assay kit (immunoturbidimetric method), and obtained a Class I product filing for cleaning agents[40] Taxation - The company has maintained a 15% preferential tax rate due to its classification as a high-tech enterprise, compared to the standard 25% corporate income tax rate in China[4]

| --- | --- | |---------------------------------------------------------------------------------------------|----------------------------------------------------| | 中生北控生物科技股份有限 | 公 司 | | | | | | | | (Incorporated in the People's Republic of China with limited liability) (Stock Code : 8247) | BIOSINO BIO-TECHNOLOGY AND SCIENCE INCORPORATION * | Annual Report 2020 Annual Report 2020 年報 * For identification purpose only 中生北控生物科技股份有限 公 司 BIOSINO BIO-TECHNOLOGY AND SCIENCE INCORPORATION *2020 年 報 * 僅 供 識 別 1 香港 ...

Financial Performance - For the three months ended September 30, 2020, the company reported revenue of RMB 94,171 thousand, a slight increase from RMB 92,059 thousand in the same period of 2019, representing a growth of 2.3%[10] - The gross profit for the same period was RMB 38,070 thousand, compared to RMB 43,902 thousand in 2019, indicating a decrease of 13.3%[10] - The net profit attributable to the owners of the parent company for the three months ended September 30, 2020, was RMB 2,492 thousand, down from RMB 4,068 thousand in 2019, reflecting a decline of 38.8%[10] - For the nine months ended September 30, 2020, the company reported a total revenue of RMB 225,554 thousand, compared to RMB 295,952 thousand in the same period of 2019, a decrease of 23.7%[10] - The company incurred a net loss of RMB 12,417 thousand for the nine months ended September 30, 2020, compared to a profit of RMB 16,034 thousand in 2019[10] - The basic and diluted earnings per share for the three months ended September 30, 2020, was RMB 0.02, down from RMB 0.03 in the same period of 2019[10] - The total comprehensive income for the three months ended September 30, 2020, was RMB 2,606 thousand, compared to RMB 4,537 thousand in 2019, a decrease of 42.5%[11] - The company’s operating profit for the three months ended September 30, 2020, was RMB 3,909 thousand, slightly up from RMB 3,749 thousand in the same period of 2019[10] - For the nine months ended September 30, 2020, the company's operating revenue was approximately RMB 226 million, a decrease of about 23.8% compared to RMB 296 million in the same period last year[31] Research and Development - The company reported a significant increase in research and development expenses, totaling RMB 20,296 thousand for the nine months ended September 30, 2020, compared to RMB 21,305 thousand in 2019[10] - The company obtained a patent for a method to rapidly determine serum vitamins A and E using liquid chromatography-tandem mass spectrometry during the reporting period[31] - The company registered two new products: a reagent kit for measuring apolipoprotein E and a reagent kit for total protein measurement in cerebrospinal fluid/urine, along with 74 product renewals[31] - The company received a Class I product filing certificate for nucleic acid extraction solution and sample preservation solution for COVID-19[31] - The company's COVID-19 antibody detection kit first received EU CE certification and was later included in the export whitelist by the Ministry of Commerce of China[31] - The company expects to enhance product quality and develop new testing projects driven by technological advancements in the industry[40] - The company aims to strengthen its competitive advantage in the biochemical diagnostics market and increase market share for other products[40] - The company continues to focus on product-centric and market-oriented strategies to enhance product lines and improve production and quality management[28] Market and Competitive Landscape - The company anticipates that the market concentration in the in vitro diagnostic industry will further increase as leading domestic companies enhance their R&D capabilities and operational scale[27] - The company aims to maintain a competitive edge in the market by continuously developing new products that meet market demands and technological advancements[27] Financial Obligations and Assets - The company has a repayment plan with Zhongke Fund for a loan amounting to RMB 184,300,000, with repayment deadlines set for February 29, 2020 (RMB 55,283,107.70), June 30, 2020 (RMB 128,993,917.96), and December 31, 2020 for the remaining balance[34] - The interest rate for the loan from Zhongke Fund ranges from 6.09% to 10.50%[38] - Zhongke Fund is required to transfer 50% of its equity in Yanqi Lake to the company by November 13, 2020, to offset a debt of RMB 145,000,000[41] - The fair value of the 50% equity in Yanqi Lake, along with guarantees provided, is estimated at RMB 50,900,000[41] - The company received two residential properties valued at RMB 5,400,000 to offset a debt owed by Zhongke Fund[42] - As of the report date, Zhongke Fund has not repaid a remaining cash balance of RMB 37,800,000 as per the civil judgment[42] Shareholder Information - Beijing Puhui Asset Management Co., Ltd. holds 31,308,576 shares, representing 38.93% of the company's domestic shares[46] - Mr. Wang Shuai owns 24,506,143 shares, accounting for 30.47% of the domestic shares[46] - Mr. Xiao Yonggang possesses 7,763,505 shares, which is 9.65% of the domestic shares[46] - Beijing Holdings Limited holds 27,256,143 H shares, representing 42.40% of the H shares[46] - Yunnan Shengneng Investment Partnership (Limited Partnership) owns 6,780,000 H shares, accounting for 10.55% of the H shares[47] - Chung Shek Enterprises Company Limited has 3,800,000 H shares, which is 5.91% of the H shares[47] Corporate Governance - The company has established an audit committee to review and supervise its financial reporting procedures and internal control systems[56] - The company has complied with all provisions of the Corporate Governance Code during the reporting period, except for specific clauses[57] - The company is currently reviewing insurance quotes to purchase liability insurance for its directors within 2020[60] - The company has decided not to establish an internal audit department due to its scale and simple operational structure[64] - The board has implemented measures to ensure compliance with GEM listing rules and relevant laws through financial reporting and internal control principles[64] - External consultants have been hired to conduct internal reviews as determined by the audit committee[64] - The existing organizational structure and close supervision by management are believed to maintain adequate risk management and internal control[64] - The board will periodically review the necessity of establishing an internal audit function and may form an internal audit team if needed[64] Dividend Policy - The company has not declared an interim dividend for the nine months ended September 30, 2020, consistent with the previous year[24] Employee and Talent Management - The company is committed to improving its compensation and incentive mechanisms to attract talented individuals[40] Securities Transactions - The company did not purchase, sell, or redeem any of its listed securities during the nine months ending September 30, 2020[52]

Company Overview - The company is a leading supplier of in vitro diagnostic reagents in China, focusing on R&D, production, sales, and distribution of diagnostic products [9]. - The company has established a marketing network covering over 600 distributors across more than 30 provinces and municipalities in China [9]. - The first major shareholder, Beijing Saipu Asset Management Co., Ltd., is a wholly-owned subsidiary of the Chinese Academy of Sciences, enhancing the company's credibility [9]. - The brand "Zhongsheng" has been recognized as a famous brand in Beijing and has received multiple quality awards in the diagnostic reagent market [9]. - The company has a strong management team, including several university professors and PhDs, contributing to its competitive edge in research and development [10]. - The company emphasizes a business philosophy of "people-oriented, innovation, quality first, pursuit of perfection, honest labor, and legal operation" to strengthen its overall competitiveness [10]. - The company is committed to providing high-quality and reliable disease testing reagent products to hospitals and healthcare institutions [9]. - The company has a diverse ownership structure, with significant stakes held by both state-owned and private enterprises, ensuring a robust financial backing [14]. Financial Performance - The company achieved a revenue of RMB 131 million in the first half of 2020, a decrease of 36% compared to the same period last year [22]. - The loss attributable to shareholders was RMB 12.31 million, a decrease of 2.7 times compared to a profit of RMB 7.21 million in the same period last year, primarily due to the negative impact of COVID-19 [22]. - For the six months ended June 30, 2020, the group's revenue was approximately RMB 131,383,000, a decrease of 35.4% compared to RMB 203,893,000 for the same period in 2019 [40]. - The gross profit for the same period was RMB 46,716,000, down 44.5% from RMB 84,193,000 in 2019 [40]. - The operating profit for the six months ended June 30, 2020, was a loss of RMB 9,875,000, compared to a profit of RMB 15,914,000 in the same period of 2019 [40]. - The net profit attributable to the company's shareholders for the six months ended June 30, 2020, was a loss of RMB 12,305,000, compared to a profit of RMB 7,213,000 in 2019 [41]. - The company reported a net loss of RMB 15,072,000 for the six months ended June 30, 2020, compared to a profit of RMB 11,560,000 in the same period of 2019 [43]. - The total employee cost for the six months ended June 30, 2020, was approximately RMB 39,310,000, a decrease of 43.7% compared to RMB 69,880,000 in 2019 [37]. - The company employed approximately 470 full-time employees as of June 30, 2020, down from about 542 employees as of December 31, 2019 [37]. - The total current liabilities amounted to RMB 370,000,000 as of June 30, 2020, slightly up from RMB 362,952,000 as of December 31, 2019, representing an increase of approximately 1.3% [46]. - The total equity as of June 30, 2020, was RMB 183,741,000, a decrease from RMB 199,225,000 as of December 31, 2019, representing a decline of approximately 7.8% [46]. - The net cash flow from operating activities for the six months ended June 30, 2020, was a negative RMB 9,290,000, compared to a positive RMB 26,149,000 for the same period in 2019, indicating a significant decline [49]. - The total non-current liabilities increased to RMB 85,574,000 as of June 30, 2020, compared to RMB 82,786,000 as of December 31, 2019, marking an increase of about 3.4% [46]. - The total non-current assets as of June 30, 2020, were RMB 207,721,000, a decrease from RMB 219,398,000 as of December 31, 2019 [44]. - The total current assets as of June 30, 2020, were RMB 431,594,000, slightly up from RMB 425,565,000 as of December 31, 2019 [44]. - The net cash and cash equivalents increased to RMB 49,970,000 as of June 30, 2020, from RMB 30,052,000 at the beginning of the period, showing an increase of about 66.5% [49]. Market and Product Development - The domestic in vitro diagnostic reagent market size was estimated to be over RMB 70 billion in 2019, with the biochemical product market share reaching approximately 35% [22]. - The company registered two new products during the reporting period and completed the continuation registration of 74 products, including a new COVID-19 antibody detection kit that received EU CE certification [21]. - The company plans to expand its biochemical product line and accelerate the development of immunological products, mass spectrometry products, flow cytometers, and molecular products [18]. - The company aims to enhance its competitiveness through new technologies and products in response to the intense price competition in the domestic biochemical diagnostic reagent market [27]. - The company anticipates that the in vitro diagnostic industry may continue to be affected by the unpredictable macroeconomic environment and the spread of the pandemic in the second half of 2020 [29]. Corporate Governance - The company has complied with all corporate governance code provisions during the reporting period, except for specific provisions A.1.8, A.2.1, and C.2.5 [95]. - The company has established an audit committee to review and supervise its financial reporting procedures and internal control systems [94]. - No directors or supervisors have been reported to have interests in any business that competes directly or indirectly with the company [89]. - The company believes that the current structure of having the Chairman and CEO roles combined does not undermine the balance of power and authority between the board and management [98]. - The company has decided not to establish an internal audit department due to its operational scale and structure, but has implemented measures to ensure compliance with financial reporting and internal control principles [99]. - The board has engaged external consultants to conduct internal reviews as part of its risk management and internal control strategy [99]. - The necessity of establishing an internal audit function will be reviewed periodically by the board, with potential formation of an internal audit team if needed [99]. Shareholder Information - As of June 30, 2020, Mr. Wu Le Bin holds 3,500,878 shares, representing 4.35% of the company's domestic shares and 2.42% of the total registered capital [83]. - Beijing Puxi Asset Management Co., Ltd. owns 31,308,576 shares, accounting for 38.93% of domestic shares and 21.64% of the total registered capital [86]. - Mr. Wang Shuai holds 24,506,143 shares, representing 30.47% of domestic shares and 16.93% of the total registered capital [86]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ending June 30, 2020 [90]. - The company has not granted any rights to directors or supervisors to purchase shares or debt securities during the six months ending June 30, 2020 [88]. - The total equity attributable to non-controlling interests was RMB 21,663,000 as of June 30, 2020, down from RMB 24,434,000 as of December 31, 2019, reflecting a decrease of approximately 11.5% [46]. Other Financial Metrics - Revenue from a single customer in the in vitro diagnostic reagent product category accounted for approximately RMB 26,223,000, which is over 10% of the total revenue [61]. - The net cash flow from investing activities was RMB 3,145,000 for the six months ended June 30, 2020, compared to a negative RMB 6,616,000 for the same period in 2019, indicating an improvement [49]. - Financial expenses for the three months ended June 30, 2020, increased significantly to RMB 2,892,000 from RMB 825,000 in the same period of 2019, marking a rise of approximately 250.5% [65]. - The total tax expense for the six months ended June 30, 2020, was RMB 88,000, down from RMB 4,358,000 in the same period of 2019, indicating a substantial decrease of approximately 98% [68]. - Basic earnings per share for the six months ended June 30, 2020, remained at RMB 0.00, consistent with the same period in 2019, as there were no diluted earnings reported [69]. - The company proposed not to declare an interim dividend for the six months ended June 30, 2020, consistent with the decision in 2019 [70]. - Trade receivables as of June 30, 2020, totaled RMB 175,382,000, a decrease from RMB 221,889,000 as of December 31, 2019, reflecting a decline of approximately 20.9% [72]. - Trade payables as of June 30, 2020, amounted to RMB 97,152,000, down from RMB 118,223,000 as of December 31, 2019, representing a decrease of approximately 17.8% [74]. - The company has guaranteed loans amounting to RMB 36,200,000 for an associate and a subsidiary as of June 30, 2020, slightly down from RMB 36,500,000 as of December 31, 2019 [76]. - Total remuneration for key management personnel for the six months ended June 30, 2020, was RMB 2,152,000, a slight decrease from RMB 2,163,000 in the same period of 2019 [80]. - The company has no significant capital commitments related to property, plant, and equipment as of June 30, 2020 [77].

Financial Performance - For the first quarter of 2020, the company reported a revenue of RMB 47,089,000, a decrease of 58.0% compared to RMB 112,164,000 in the same period of 2019[9] - The gross profit for the first quarter of 2020 was RMB 14,311,000, down 60.7% from RMB 36,323,000 year-on-year[9] - The operating loss for the quarter was RMB 13,669,000, compared to an operating profit of RMB 5,685,000 in Q1 2019[9] - The net loss attributable to the company's shareholders was RMB 15,796,000, compared to a profit of RMB 2,306,000 in the same quarter of the previous year[9] - The company incurred a total comprehensive loss of RMB 17,531,000 for the first quarter of 2020, compared to a comprehensive income of RMB 3,118,000 in Q1 2019[10] - The financial cost for the quarter was RMB 2,723,000, compared to RMB 546,000 in Q1 2019, indicating a significant increase in financial expenses[9] - The decline in revenue and increase in loss were primarily due to the negative impact of the COVID-19 pandemic on business operations[28] Research and Development - Research and development expenses for the quarter were RMB 5,279,000, an increase from RMB 4,989,000 in the same period last year[9] - The company completed the renewal registration of 74 products, including ischemic modified albumin test kits, and obtained a Class I product filing for nucleic acid extraction reagents for the coronavirus[34] - The company is focused on enhancing its competitiveness through new technologies and products in a market characterized by severe price competition and declining growth rates[34] Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated income statement for the period[48] - The company has complied with all provisions of the Corporate Governance Code, except for specific clauses mentioned[50] - The company is currently reviewing insurance quotes for potential legal action protection for its directors[51] - The roles of Chairman and CEO are held by Mr. Wu Lebin, which deviates from the recommended separation of these roles[53] - The company has decided not to establish an internal audit department due to its operational scale and structure, but has implemented measures to ensure compliance with financial reporting and internal control principles[54] - The board has engaged external consultants to conduct internal reviews as part of its risk management and internal control strategy[54] - The necessity of establishing an internal audit function will be reviewed periodically by the board, with potential formation of an internal audit team if needed[54] Shareholder Information - The company has 64,286,143 H shares issued, with a par value of RMB 1.00 per share[7] - As of March 31, 2020, 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[40] - Mr. Xu Chunmao holds 600,000 shares, accounting for 0.75% of the domestic shares and 0.41% of the total registered capital[40] - Major shareholder Mr. Wang Shuai directly owns 31,308,576 shares, which is 38.93% of the domestic shares and 21.64% of the total registered capital[41] - Mr. Xiao Yonggang directly owns 24,506,143 shares and 7,763,505 H shares, representing 30.47% and 9.65% of the respective categories[41] - Beijing Holdings Limited holds 27,256,143 H shares, accounting for 42.40% of the H shares and 18.84% of the total registered capital[41] Market Outlook - The company anticipates that the macroeconomic environment and the unpredictable spread of the pandemic may continue to impact the in vitro diagnostics industry in 2020[35] - The company has been actively responding to the challenges posed by the pandemic and is seeking new business growth points to expand revenue sources[35] Dividend Policy - The board of directors did not recommend the distribution of an interim dividend for the three months ended March 31, 2020[25]