資本服務 科技 科技 創造價值 2024 ESG Report 環境、社會及管治報告 Environmental, Social and Governance Report 環境、社會及管治報告 ABOUT THIS REPORT Sino-Life Group Limited (the "Company"), together with its subsidiaries (the "Group"), is pleased to present this Environmental, Social and Governance Report (the "Report") to provide an overview of the Group's management of significant issues affecting the operation, including environmental, social and governance ("ESG") issues. This Report is prepared by the Group with the professional assis ...

Economic Growth and Market Outlook - In 2024, China's GDP growth target was achieved at 5%, despite a turbulent global economic environment and domestic structural challenges [20]. - China's GDP growth for 2024 is projected at 5.0%, meeting the government's target despite challenges such as weak domestic consumption and a property downturn [45]. - In Q4 2024, GDP growth accelerated to 5.4% year-on-year, supported by stimulus measures aimed at boosting domestic demand [45]. - The Chinese government is expected to maintain stimulus measures and fiscal support to bolster sustainable domestic demand, contributing to a moderate recovery trajectory for the economy [32]. - China's GDP is expected to expand at around a 5% target in 2025, reflecting structural challenges such as a persistent property downturn and subdued domestic consumption [157]. Funeral and Cremation Services Market - The funeral and cremation services market in China is projected to grow at a compound annual growth rate of over 3% from 2024 to 2029, with approximately 4,605 funeral service institutions operating by 2023 [21]. - The funeral and related services sector is expected to grow at a modest annual rate of 3% to 4% in 2025, driven by an aging population and sustained demand for innovative services [33]. - Cremation rates increased from 55.7% in 2020 to 58.8% in 2021, indicating a shift in consumer preferences towards cremation over traditional burials [51]. - The number of funeral service institutions rose from approximately 4,474 in 2022 to 4,605 in 2023, reflecting a mature yet competitive market [51]. - The medium-term growth outlook for the funeral and related services sector is expected to be modest, with an annual expansion rate around 3% to 4% [161]. Biotechnology Sector Insights - The emerging biotechnology segment shows significant long-term potential, driven by government initiatives like "Healthy China 2030" and substantial investments in biomedicine and precision oncology [22]. - The biotechnology sector will continue to see government initiatives driving innovation, particularly in biomedicine, regenerative medicine, and precision oncology [34]. - The biotechnology sector in China is experiencing a cautious funding environment in 2024, which may moderate growth compared to the previous year [52]. - Significant investments in research and development are shifting the focus from generics to novel drug development, supported by government initiatives [52]. - The application of digital technologies such as AI, big data, and blockchain is expected to reduce healthcare service costs and promote sustainable development in the biotechnology industry [164]. Financial Performance and Revenue - The loss attributable to the owners of the Company for 2024 was approximately RMB8,699,000, compared to RMB7,173,000 for the prior year, indicating a decline in profitability [29]. - The Group's revenue from funeral, cremation, and cemetery services increased by approximately 1.8% year-on-year, from approximately RMB65,838,000 in the Prior Year to approximately RMB67,035,000 in the Year [62]. - Revenue from funeral services segment in China was approximately RMB70,443,000, reflecting a year-over-year increase from approximately RMB69,501,000 [72]. - The overall profit margin for the Group decreased to 4.9% in 2024 from 6.5% in 2023 [71]. - Other income and net gains decreased by approximately 14.3% to RMB 2,204,000 from RMB 2,571,000 in the prior year [81]. Strategic Initiatives and Operational Efficiency - The Group plans to enhance operational efficiency in its traditional funeral services business by optimizing cost structures and streamlining service delivery in 2025 [38]. - The Group aims to leverage technological integration to enhance customer experience and drive cost efficiencies in an increasingly competitive market [38]. - The Company will focus on operational efficiency and strategic partnerships to adapt to macroeconomic signals and consumer confidence [56]. - The Group's strategic focus includes operational efficiency and monitoring macroeconomic signals to adjust business strategies accordingly [58]. - The Group's strategic initiatives focus on enhancing market presence and optimizing costs in response to changing consumer preferences and economic conditions [82]. Investment Strategy and Portfolio Management - The Group's investments in biotechnology, particularly through its subsidiary Zhongke Zhenhui (Guangdong) Medical Technology Company Limited, will remain a cornerstone of its long-term strategy [34]. - The Group aims to broaden its income sources and maximize returns by investing in various equity securities, ETFs, debt instruments, and derivative instruments [115]. - The Group's investment strategy includes maintaining a balanced portfolio to mitigate risks and enhance returns for shareholders [120]. - The Group's investment portfolio constituted only 3.1% of the total assets as of December 31, 2024, with the largest single security exposure being 3.0% [120]. - The Group's liquidity position remains strong, with sufficient resources to meet commitments and working capital requirements, despite uncertainties in economic conditions [106]. Corporate Governance and Compliance - The Board held only three regular meetings during the year, failing to meet the requirement of at least four meetings annually [177]. - The Board comprises a balanced composition with 50% independent non-executive Directors, exceeding GEM Listing Rules requirements [200]. - The company has implemented mechanisms to ensure independent views are available to the Board, reviewed annually for effectiveness [199]. - All Directors confirmed compliance with the securities trading code throughout the year [183]. - There were no known non-compliance incidents during the year [184].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of RMB 74,943,000, an increase from RMB 72,570,000 in the previous year, representing a growth of approximately 3.25%[7] - The gross profit for the same period was RMB 32,283,000, a decrease from RMB 33,481,000, indicating a decline of about 3.57%[7] - The company experienced a pre-tax loss of RMB 7,454,000, slightly improved from a loss of RMB 7,943,000 in the prior year, reflecting a reduction in losses of approximately 6.15%[7] - The net loss for the year was RMB 10,402,000, compared to a net loss of RMB 10,086,000 in the previous year, showing an increase in losses of about 3.13%[7] - Total comprehensive income for the year was RMB 757,000, compared to RMB 5,801,000 in the previous year, indicating a significant decline[8] - The company reported a basic loss per share of RMB (9.48) cents, compared to RMB (8.99) cents in the previous year[8] Revenue Breakdown - The group reported total revenue of RMB 74,943 thousand for the year ended December 31, 2024, with RMB 70,443 thousand from funeral services and RMB 4,500 thousand from biotechnology and other businesses[30] - For the year ended December 31, 2023, total revenue was RMB 72,570 thousand, with RMB 69,501 thousand from funeral services and RMB 3,069 thousand from biotechnology[31] - The revenue from funeral services increased from RMB 65,838 thousand in 2023 to RMB 67,035 thousand in 2024, representing a growth of approximately 1.8%[30][31] - Revenue from biotechnology and other businesses reached RMB 4,500,000 in fiscal year 2024, compared to RMB 3,069,000 in the previous year, marking a significant increase[51] Expenses and Liabilities - Administrative expenses decreased to RMB 36,336,000 from RMB 41,044,000, representing a reduction of approximately 11.4%[7] - The company incurred a fair value loss on investment properties of RMB 748,000, which is an improvement from a loss of RMB 1,081,000 in the previous year[7] - The expected credit loss on trade and other receivables was RMB 4,150,000, a significant increase from a reversal of RMB 2,841,000 in the previous year[7] - Total liabilities decreased to RMB 133,611,000 from RMB 145,882,000 year-over-year[12] Assets and Equity - Non-current assets totaled RMB 54,248,000, down from RMB 58,619,000 year-over-year[9] - Current assets decreased to RMB 196,378,000 from RMB 213,088,000 in the previous year[9] - The company's equity attributable to owners increased to RMB 123,452,000 from RMB 123,718,000[12] - Cash and cash equivalents were reported at RMB 109,256,000, down from RMB 125,019,000[9] Strategic Focus and Future Plans - The company plans to focus on market expansion and new product development in the upcoming fiscal year[6] - The company aims to diversify its development and achieve high-quality economic growth to effectively address geopolitical risks and market complexities[98] - The company emphasizes the importance of operational efficiency, technological innovation, and strategic partnerships to adapt to market opportunities[97] Market and Economic Outlook - China's GDP growth rate for 2024 is projected to be around 5.0%, despite facing structural challenges such as weak domestic consumption and a sluggish real estate market[40] - The funeral and related services industry is expected to maintain stable growth, with a compound annual growth rate exceeding 3% from 2024 to 2029[41] - The biotechnology sector in China continues to show strong innovation capabilities, supported by regulatory reforms and increased government funding[43] Compliance and Governance - The board of directors confirmed the accuracy and completeness of the financial information presented in the report[5] - The company did not declare or recommend any dividends for the years ending December 31, 2023, and 2024[34] - The company has complied with relevant laws and regulations, with no significant violations reported during the year[110] Investment and Financial Management - The company made total investments of approximately RMB 894,796,000 during the year, including various financial instruments[71] - The fair value of the investment portfolio as of December 31, 2024, was approximately RMB 7,716,000, down from RMB 14,532,000 in 2023[69] - The group continues to adopt a conservative treasury policy, primarily conducting its ongoing business transactions in RMB and HKD[76]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容 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。 （股份代號：8296） （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） 董事會會議通告 中 國 生 命 集 團 有 限 公 司（「本公司」）之 董 事（「董 事」）會（「董事會」）謹 此 宣 布， 董 事 會 會 議 將 於 二 零 二 五 年 三 月 二 十 七 日（星 期 四）舉 行，以 便 處 理 下 列 事 項： 承董事會命 中國生命集團有限公司 主席兼執行董事 本公告的資料乃遵照香港聯合交易所有限公司GEM證 券 上 市 規 則 而 刊 載， 旨 在 提 供 有 關 本 公 司 的 資 料；本 公 司 的 董 事 願 就 本 公 告 的 資 料 共 同 及 個 別地承擔全部責任。各董事在作出一切合理查詢後，確認就其所知及所信， 本 公 告 所 載 資 料 在 各 重 要 方 面 均 屬 準 確 完 備，沒 有 誤 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容 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 就 因本公告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。 本 公 告 僅 供 參 考，並 不 構 成 收 購、購 買 或 認 購 本 公 司 任 何 證 券 之 邀 請 或 要 約。 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （股份代號：8296） 許建春 香 港，二 零 二 五 年 一 月 六 日 收購廣東因微約19.46%股 權 涉及根據特別授權發行可換股債券 之須予披露及關連交易失效 茲提述(i)本公司日期為二零二四年七月二十九日及二零二四年十月九日 之 公 告；及(ii)本 公 司 日 期 為 二 零 二 四 年 九 月 十 六 日 之 通 函（「通 函」），內 容有關收購廣東因微約19.46%股權涉及根據特別授權發行可換股債券之 須 予 披 露 及 關 連 交 易。除 另 有 指 明 外，本 公 告 所 用 詞 彙 與 通 函 所 界 定 者 具 有 相 同 涵 義 ...

Dividend Policy - The board does not recommend the payment of any interim dividend for the current period, consistent with previous periods[1] Financial Results - The announcement pertains to the interim results for the six months ending June 30, 2024[1] - The announcement was made on August 30, 2024, by the board of directors of China Life Group Limited[2]

Financial Performance - For the six months ended June 30, 2024, the group reported revenue of RMB 34,383,000, a decrease of 15.7% compared to RMB 40,831,000 for the same period in 2023[2] - The gross profit for the period was RMB 11,971,000, down 29.4% from RMB 16,996,000 in the previous year[2] - The operating loss increased to RMB 6,745,000, compared to an operating loss of RMB 2,241,000 in the prior period, reflecting a significant deterioration in performance[2] - The net loss for the period was RMB 8,909,000, which is a 95.2% increase from the net loss of RMB 4,561,000 in the same period last year[3] - Basic loss per share was RMB 0.96, compared to RMB 0.51 in the previous year, indicating a worsening financial position[3] - The total comprehensive loss for the period was RMB 8,374,000, significantly higher than RMB 1,915,000 in the prior year, highlighting increased financial challenges[3] - The group reported a pre-tax comprehensive loss of RMB 7,673 thousand for the six months ended June 30, 2024, compared to a loss of RMB 3,184 thousand in the same period of 2023[22] - The company reported a loss attributable to owners of approximately RMB 8,665,000, compared to RMB 3,791,000 in the previous period, with a loss per share of approximately RMB 0.96[81] Revenue Breakdown - The group's revenue from funeral services and cremation services for the six months ended June 30, 2024, was RMB 33,007,000, a decrease of 8.2% compared to RMB 35,957,000 for the same period in 2023[17] - Revenue from funeral arrangements and related consulting services was RMB 1,376,000, down 11.5% from RMB 1,554,000 in the previous year[17] - The company's total revenue for the six months ended June 30, 2024, was RMB 222,510 thousand, compared to RMB 290 thousand for the same period in 2023[8] - Revenue from the Chinese market was approximately RMB 33,007,000, down about 8.2% from RMB 35,957,000 in the previous period[76] - Revenue from Taiwan was approximately RMB 962,000, relatively stable compared to RMB 967,000 in the previous period[77] - Revenue from Hong Kong significantly decreased from approximately RMB 3,586,000 in the previous period to about RMB 414,000 in the current period[77] - The company ceased sales activities in Vietnam due to a significant decline in demand for burial plots, resulting in zero revenue contribution from this market[78] Assets and Liabilities - Total assets decreased to RMB 208,064,000 from RMB 213,088,000, reflecting a decline in the company's asset base[5] - Cash and bank balances were reported at RMB 118,770,000, down from RMB 125,019,000, indicating a reduction in liquidity[5] - The company's equity attributable to owners decreased to RMB 87,489,000 from RMB 81,947,000, showing a slight improvement in equity position despite losses[5] - The fair value of financial assets measured at fair value through profit or loss was RMB 45,336,000 as of June 30, 2024, down from RMB 48,495,000 as of December 31, 2023[45] - The total amount of prepayments, deposits, and other receivables increased to RMB 39,018,000 as of June 30, 2024, compared to RMB 34,166,000 as of December 31, 2023[48] - Trade payables as of June 30, 2024, were RMB 1,470,000, a decrease from RMB 1,941,000 as of December 31, 2023[51] Cash Flow - The company reported a net cash outflow from operating activities of RMB (12,145) thousand for the six months ended June 30, 2024, compared to a net inflow of RMB 5,547 thousand for the same period in 2023[9] - The net cash inflow from investing activities was RMB 704 thousand for the six months ended June 30, 2024, down from RMB 4,135 thousand in the previous year[9] - The net cash inflow from financing activities was RMB 1,534 thousand for the six months ended June 30, 2024, compared to a net outflow of RMB (3,889) thousand in 2023[9] - The cash and cash equivalents decreased by RMB (9,907) thousand for the six months ended June 30, 2024, while it increased by RMB 5,793 thousand in the same period of 2023[9] Employee and Management Costs - Employee costs, including director remuneration, decreased to RMB 14,658 thousand from RMB 17,320 thousand year-on-year[35] - The short-term employee benefits for key management personnel for the six months ended June 30, 2024, totaled RMB 3,677,000, an increase from RMB 2,308,000 in the previous year[63] - The total amount payable to directors as of June 30, 2024, was RMB 5,333,000, compared to RMB 4,681,000 as of December 31, 2023, reflecting an increase of approximately 13.9%[67] Strategic Focus and Future Plans - The company aims to enhance its research capabilities and product offerings through the acquisition of Guangdong Yimicro, which specializes in biochip development and personalized medical consultation services[70] - The biotechnology sector is identified as a long-term strategic focus, with significant progress made in life sciences instrument sales since 2019[94] - The group plans to leverage opportunities in the biotechnology field, particularly in biomedicine and healthcare, as part of its investment strategy[94] - The company plans to propose a share consolidation, merging every ten shares of HKD 0.1 into one share of HKD 1.0, which will reduce the total number of shares from 10 billion to 1 billion[71] Governance and Compliance - The company's governance practices are based on the GEM Listing Rules, emphasizing high-quality board composition and transparency to shareholders[112] - An audit committee has been established, consisting of three independent non-executive directors, to oversee financial reporting and internal control systems[116] - The audit committee reviewed the unaudited condensed consolidated financial statements for the period and confirmed compliance with applicable accounting standards[116]

Financial Performance - The company reported a total revenue of RMB 34,383,000 for the six months ended June 30, 2024, compared to RMB 40,831,000 for the same period in 2023, representing a decrease of approximately 15.8%[2] - The gross profit for the period was RMB 11,971,000, down from RMB 16,996,000 in the previous year, indicating a decline of about 29.3%[2] - The net loss attributable to the owners of the company was RMB 8,665,000, compared to a loss of RMB 3,791,000 in the prior year, reflecting an increase in losses of approximately 128.5%[3] - The total comprehensive income for the period, after tax, was RMB 535,000, down from RMB 2,646,000 in the previous year[2] - The basic loss per share for the period was RMB 0.96, compared to RMB 0.51 in the same period last year, representing an increase of approximately 88.2%[3] - The group reported a segment operating profit of RMB 914 thousand for the six months ended June 30, 2024, compared to RMB 4,693 thousand for the same period in 2023, indicating a significant decrease of approximately 80%[21] - The company reported a loss attributable to owners of RMB 8,665,000, compared to a loss of RMB 3,791,000 in the previous period[79] Assets and Liabilities - The company's total assets as of June 30, 2024, were RMB 262,052,000, a slight decrease from RMB 271,707,000 as of December 31, 2023[4] - Current liabilities amounted to RMB 128,704,000, compared to RMB 131,569,000 at the end of 2023, showing a decrease of about 2.1%[4] - The company’s non-current assets totaled RMB 53,988,000, down from RMB 58,619,000 at the end of 2023, reflecting a decrease of about 7.8%[4] - The company’s equity attributable to owners was RMB 105,947,000, a decrease from RMB 108,533,000 at the end of 2023, indicating a decline of approximately 2.4%[5] - Total liabilities decreased from RMB 12,074,000 as of December 31, 2023, to RMB 11,866,000 as of June 30, 2024[44] Cash Flow - For the six months ended June 30, 2024, the net cash used in operating activities was RMB (12,145) thousand, compared to RMB 5,547 thousand for the same period in 2023[8] - The net cash generated from investing activities was RMB 704 thousand, a decrease from RMB 4,135 thousand in the previous year[8] - The net cash generated from financing activities was RMB 1,534 thousand, compared to a net cash used of RMB (3,889) thousand in the prior year[8] - As of June 30, 2024, cash and cash equivalents decreased by RMB (9,907) thousand, while the balance at the beginning of the period was RMB 125,019 thousand[8] Revenue Breakdown - Revenue from funeral services and cremation services for the six months ended June 30, 2024, was RMB 33,007,000, a decrease of 8.4% from RMB 35,957,000 in the same period of 2023[15] - Revenue from funeral arrangement and related consulting services was RMB 1,376,000, down 11.5% from RMB 1,554,000 in the previous year[15] - Revenue from funeral services in China was RMB 33,007 thousand for the six months ended June 30, 2024, down from RMB 35,957 thousand in the same period of 2023, representing a decline of approximately 5.4%[22][25] - Revenue from Taiwan for the six months ended June 30, 2024, was RMB 962 thousand, slightly down from RMB 967 thousand in the same period of 2023[25] - Revenue from Hong Kong significantly decreased from RMB 3,586,000 to RMB 414,000, primarily due to the absence of high-end biotechnology equipment sales[76] - Revenue contribution from Vietnam was zero, down from RMB 321,000 in the previous period, reflecting a strategic decision to cease sales activities in that market[77] Operational Highlights - The company is primarily engaged in investment holding and provides funeral and related services in China, Taiwan, and Hong Kong[9] - The group has two reportable segments: funeral services and stem cell & immune cell business, with the former including related services and the latter involving high-end biotechnology instruments[17] - The group’s internal reporting to executive directors is consistent with the way it manages its business by segmenting based on business type and region[16] Strategic Initiatives - The company aims to enhance its research capabilities and product offerings in the biotechnology sector through the acquisition of Guangdong Yimicro, which specializes in biochip development and personalized medical consultation services[69] - The company has established a specialized investment team to accelerate the development of its biotechnology business, focusing on areas such as biomedicine and life sciences instruments[72] - The company is committed to innovation-driven development and supporting emerging industries to navigate geopolitical risks and market complexities[93] - The company has identified strategic investments in biotechnology, biomedicine, and life sciences instruments as key areas for future growth[93] Shareholder Information - The total equity held by Mr. Xu in the company amounts to 364,601,984 shares, representing approximately 38.58% of the total issued shares[94] - The major shareholder, Hong Kong Gaoqi Biotechnology Co., holds 220,475,000 shares, accounting for approximately 23.33% of the total issued share capital[96] - The company issued a total of 60,000,000 new shares to six independent shareholders on June 14, 2024[51] Governance and Compliance - The board has confirmed compliance with the corporate governance code, with a noted absence of an independent non-executive director at the annual general meeting due to other business commitments[110] - The audit committee has been established and consists of three independent non-executive directors, ensuring compliance with GEM listing rules[114] - The audit committee reviewed the unaudited consolidated financial statements for the period and confirmed adherence to applicable accounting standards[114]

Revenue Performance - For the year ended December 31, 2023, Sino-Life Group Limited reported revenue of approximately RMB 72,570,000, a year-on-year decrease of 6.9% from RMB 77,969,000 in the prior year[22]. - Revenue from the People's Republic of China was approximately RMB 65,838,000, representing a year-on-year decrease of 11.6% from RMB 74,468,000[23]. - Revenue from Taiwan increased by 31.5% year-on-year to approximately RMB 2,014,000, compared to RMB 1,531,000 in the prior year[23]. - Revenue from funeral arrangement and related consultancy services in Hong Kong decreased by 14.8% year-on-year to approximately RMB 1,089,000, down from RMB 1,278,000[23]. - Revenue from the Chinese market was approximately RMB 65,838,000, down 11.6% from RMB 74,468,000 in the prior year[25]. - The Group's revenue from funeral services and cremation services experienced a single-digit percentage decrease due to the high base effect in 2022[34]. - Revenue from Hong Kong reached approximately RMB 4,158,000, with RMB 3,069,000 from stem cells and immunocytes, marking a significant increase from zero in the prior year[51]. - Revenue from Vietnam was approximately RMB 560,000, a decrease from RMB 692,000 in the prior year[57]. Economic Environment - China's GDP for 2023 reached RMB 126.06 trillion, reflecting a year-on-year increase of 5.2% at constant prices[21]. - The overall economic environment remains challenging, with China facing pressures of shrinking demand, supply shocks, and weakening expectations[28]. - The Chinese government has implemented macro policy adjustments to promote high-quality and sustainable economic development amidst external pressures[21]. - The Group's performance was impacted by insufficient effective demand and overcapacity in certain industries within the Chinese market[21]. - The global economy may experience a soft landing, which could stabilize exports and reduce pressure on the RMB exchange rate[158]. Business Strategy and Focus - The Group's business model focuses on traditional funeral services and emerging biotechnology, with traditional services accounting for a large proportion of overall business[22]. - The Group aims to diversify income sources and enhance returns by focusing on both traditional funeral services and emerging biotechnology[36]. - The biotechnology sector is a long-term focus for the Group, with a specialized investment platform established to support its development[27]. - The Group plans to allocate more resources to support the development of its biotechnology business to promote high-quality growth[28]. - The Group aims to enhance its controlling position in Zhongke Zhenhui and Guangdong Zhenyuan to improve operational efficiency and decision-making[171]. Financial Performance - The Group's total revenue for the year was RMB 72,570,000, with a profit margin of 6.5%, compared to RMB 77,969,000 and a profit margin of 21.0% in the prior year[62]. - Cost of sales for the Year increased to approximately RMB 39,089,000, up by approximately 2.4% from RMB 38,169,000 in the Prior Year, mainly due to inflationary pressure on funeral services and increased costs of biotechnical machinery[71]. - Gross profit for the Year was approximately RMB 33,481,000, reflecting a year-on-year decrease of 15.9% from RMB 39,800,000, primarily due to the funeral services in the PRC[72]. - The gross profit margin for the Year was approximately 46.1%, down by 4.9% from approximately 51.0% in the Prior Year, attributed to lower margins from advanced biotechnical machinery sales and decreased profit margins in the funeral business[73]. - Other income and net gains decreased by approximately 14.5% to RMB 2,571,000 from RMB 3,007,000 in the Prior Year, mainly due to a reduction in the written back provision for service costs[74]. Investment and Financial Management - The Group invested approximately RMB 14,532,000 in equity and debt securities, and ETFs listed outside Hong Kong, down from RMB 26,006,000 in 2022[98]. - The total value of the investment portfolio decreased by approximately RMB 11,474,000 during the year[102]. - The Group's financial management strategy focuses on maintaining a suitable level of liquidity to meet operational requirements and acquisition opportunities[96]. - The Group remains in a healthy liquidity position but acknowledges uncertainties in economic conditions that may impact financial results[97]. - The gearing ratio as of December 31, 2023, was approximately 60.06%, an increase from 54.07% in 2022[118]. Corporate Governance - The company has amended its articles of association to align with the GEM Listing Rules, effective from January 1, 2022, providing flexibility for conducting general meetings in various formats[184][185]. - The board composition includes three independent non-executive directors as of June 7, 2023, complying with GEM Listing Rules requirements[182][190]. - The company adopted a board diversity policy to ensure a balance of skills, experience, and perspectives among board members[191]. - The company confirmed compliance with the code of conduct regarding directors' securities transactions throughout the year[188]. - The company will continue to improve its corporate governance practices to adapt to business developments and ensure compliance with the latest regulations[181]. Employee and Operational Changes - The company employed 202 employees as of December 31, 2023, down from 218 employees in 2022[156]. - The Group's stock option plan has 18,532,000 options unexercised as of December 31, 2023, with 7,424,000 options having expired during the year[161]. - The Group's credit risk is primarily associated with trade receivables, with a credit policy in place to monitor exposure continuously[135]. - The Group measures loss allowances for trade receivables based on lifetime expected credit losses, adjusting for regional economic conditions[141]. Acquisitions and Investments - On April 26, 2023, the Group entered into an agreement to acquire a 20.25% equity interest in Zhongke Zhenhui for RMB 15,930,000, to be satisfied through the issuance of Convertible Bonds[144]. - On April 26, 2023, the company entered into a sale and purchase agreement to acquire a 20.25% equity interest in Zhongke Zhenhui for RMB 15,930,000 (approximately HK$ 18,160,000) from Nanyue CB[145]. - The company also entered into a second sale and purchase agreement to acquire a 21.43% equity interest in Guangdong Zhenyuan for RMB 15,000,000 (approximately HK$ 17,100,000) from Shenzhen Huaxin[148]. - This second acquisition will be satisfied by issuing 142,500,000 shares under a specific mandate granted by independent shareholders[148].

Revenue Performance - Revenue from the funeral services segment for the year was approximately RMB 72,570,000, a decrease of about 6.9% compared to RMB 77,969,000 in the previous year[12]. - In China, revenue from funeral services was approximately RMB 65,838,000, representing a year-on-year decrease of about 11.6% from RMB 74,468,000 due to a high base effect from the previous year[7]. - Taiwan's business rebounded strongly, recording revenue of approximately RMB 2,014,000, an increase of about 31.5% from RMB 1,531,000 in the previous year[9]. - Hong Kong's revenue was approximately RMB 4,158,000, up from RMB 1,278,000 in the previous year, with significant contributions from stem cell and immune cell services[9]. - For the year ended December 31, 2023, the total revenue was RMB 72,570,000, a decrease of 6.1% compared to RMB 77,969,000 in 2022[69]. - Revenue from funeral services, including cremation services, was RMB 65,838 thousand for the year ended December 31, 2023, while the previous year reported RMB 74,468 thousand, reflecting a decline of about 12%[95][97]. - Revenue from stem cell and immune cell consulting services was impacted by COVID-19, with no customer orders received since May 2022[123]. - Revenue from funeral services in Hong Kong was approximately RMB 1,089,000, a decrease of about 14.8% compared to approximately RMB 1,278,000 in the previous year[125]. Profitability and Loss - The gross profit for the year was approximately RMB 33,481,000, a decrease of 15.9% from RMB 39,800,000 in the previous year, primarily due to reduced demand for funeral services in China[15]. - The net loss for the year was RMB 10,086,000, compared to a profit of RMB 626,000 in 2022, indicating a significant decline in profitability[69]. - The company recorded a net loss attributable to shareholders of approximately RMB 7,173,000 for the current year, compared to a loss of approximately RMB 847,000 in the previous year[138]. - The total comprehensive loss before tax for 2023 was RMB 7,943,000, a decline from a profit of RMB 7,888,000 in 2022[98]. - The fair value loss on financial assets measured at fair value through profit or loss was RMB 4,226,000, compared to a gain of RMB 690,000 in 2022[69]. Financial Position - As of December 31, 2023, the group maintained a solid financial position with cash and cash equivalents of approximately RMB 125,019,000, up from RMB 121,811,000 in the previous year[20]. - The total assets decreased to RMB 213,088,000 from RMB 221,077,000, reflecting a decline of 3.6%[76]. - The company's equity attributable to owners increased to RMB 123,718,000 from RMB 113,218,000, representing an increase of 9.3%[79]. - The cash and cash equivalents rose to RMB 125,019,000, up from RMB 112,477,000, indicating a growth of 11.1%[76]. - The debt-to-asset ratio was approximately 60.06% as of December 31, 2023, compared to 54.07% in 2022[148]. - The company’s net asset value decreased from RMB 130,817 million to RMB 108,533 million, a reduction of approximately 17%[80]. - The company’s bank borrowings decreased from RMB 3,590 million to RMB 2,484 million, a decline of about 31%[80]. Expenses and Costs - Administrative expenses increased by approximately 28.3% to about RMB 41,044,000, accounting for 56.6% of revenue, compared to 41.0% in the previous year[17]. - The financing costs for the year were RMB 6,262,000, compared to RMB 9,749,000 in the previous year, showing a decrease of 35.4%[69]. - Sales expenses increased by approximately 9.3% to about RMB 2,122,000 due to increased marketing activities[136]. - The interest expense on lease liabilities decreased to RMB 1,518,000 in 2023 from RMB 1,769,000 in 2022[98]. - The total income tax expense for 2023 was RMB 2,143,000, down from RMB 7,262,000 in 2022[101]. Investment and Capital Expenditures - The group invested approximately RMB 14,532,000 in various equity and debt securities and exchange-traded funds as of December 31, 2023, down from RMB 26,006,000 in the previous year[24]. - The company made capital expenditures of approximately RMB 443,000 for properties, plants, and equipment during the year, down from RMB 2,474,000 in the previous year[46]. - The company has invested RMB 2,460,000 in an associate company and RMB 225,000 in intangible assets in 2023, while the investment in a joint venture was RMB 6,500,000 in 2022[47]. - The group acquired investments totaling approximately RMB 197,866,000, including RMB 197,865,000 in equity securities or ETFs listed outside Hong Kong[144]. - The group sold investments totaling approximately RMB 205,212,000, including a reduction of RMB 200,637,000 in equity securities or ETFs listed outside Hong Kong[144]. Strategic Focus and Future Outlook - The company is focusing on the biotechnology sector, which is expected to grow due to increasing healthcare spending and public health awareness, positioning itself as a comprehensive investment platform in this field[50]. - The company plans to allocate more resources to support the development of its biotechnology business to expand revenue sources and improve operational performance[52]. - The company is actively seeking investment opportunities that align with its long-term business strategy while also aiming for capital appreciation[28]. - The global economic outlook suggests a soft landing, which may stabilize exports and reduce pressure on the RMB exchange rate, benefiting the company's financial position[49]. - The group aims to enhance its financial management value and increase shareholder returns through a balanced investment strategy[145]. Corporate Governance and Compliance - The company is committed to improving corporate governance practices to adapt to its business development needs[55]. - The company has adopted a corporate governance code based on GEM Listing Rules, emphasizing high-quality board and transparency to shareholders[170]. - The company has adhered to relevant laws and regulations without any significant violations during the year[171]. - The auditors confirmed that the financial statements for the year ending December 31, 2023, are consistent with the preliminary announcement[173]. Employee and Operational Metrics - The group employs 202 employees as of December 31, 2023, down from 218 in 2022[155]. - The company did not declare or propose any dividends for the years ended 2023 and 2022[113]. - The 2024 Annual General Meeting is scheduled for June 21, 2024[162].