Market Trends and Demand - In 2024, the national birth rate in the PRC recorded a modest rebound to 6.77‰, compared to 6.39‰ in 2023, marking the first increase after seven consecutive years of decline[15]. - The new fertility support policy issued by the PRC in October 2024 is expected to drive market demand growth for the Group's biological reagents and auxiliary reproductive supplies and equipment[36]. - The Group's focus on male infertility diagnosis positions it to benefit from the market demand growth driven by the new fertility support policy[36]. - Sales of biological reagents and auxiliary reproductive supplies and equipment remained stable, driven by sustained demand in fertility-related healthcare services[16]. - The sales of parasite antibody detection reagents rose to RMB3.8 million, reflecting sustained market demand[26]. Financial Performance - The Group's revenue increased by approximately RMB730,000, or approximately 3.0%, from approximately RMB24.6 million for the year ended 31 December 2023 to approximately RMB25.4 million for the year ended 31 December 2024[39]. - Revenue from the biological reagents and auxiliary reproductive supplies and equipment segment reached RMB25.4 million, a 4.3% increase compared to 2023, with core male fertility IVD reagents sales growing by 1.7% year-on-year to RMB19.4 million, accounting for 76.4% of the segment's total revenue[26]. - Gross profit increased to approximately RMB17.1 million for the year ended 31 December 2024, representing an increase of approximately RMB979,000 or 6.1% from approximately RMB16.1 million in 2023, with gross profit margin rising from 65.3% to 67.3%[42][44]. - The loss attributable to owners of the Company was approximately RMB4.2 million for the year ended 31 December 2024, a decrease of approximately RMB1.6 million or 28.1% from RMB5.8 million in 2023[60][64]. - Basic loss per share improved to RMB0.86 cents for the year ended 31 December 2024, compared to RMB1.39 cents in 2023[61][65]. Strategic Decisions and Developments - The Group terminated the Anoectochilus Formosanus Extractive project in late 2023, ensuring minimal financial impact through a repayment agreement signed in March 2024[17]. - The healthcare products and supplements segment temporarily suspended sales in 2024 following a strategic decision due to prolonged market headwinds[16]. - The Group strategically decided to temporarily suspend sales of the "Nutronic" brand in 2024 due to prolonged market challenges, while retaining valuable resources for future synergies[30]. - In January 2025, the Group signed a non-binding Memorandum of Understanding with Hunan Keyue Biotechnology Company Limited, proposing the acquisition of its equity to synergize resources in the growing women's health market[17]. - The Group intends to acquire equity interest in Keyue Bio to integrate resources and expand the female health market, leveraging its established overseas supply chains and international sales networks[31]. Research and Development - Research and development expenses increased to approximately RMB2.8 million for the year ended 31 December 2024, an increase of approximately RMB272,000 or 10.7% from RMB2.6 million in 2023, driven by costs associated with product improvements and new product development[53][57]. - The Group completed Class II medical device registration of semen biochemical immunoassay equipment in late 2024, enhancing its reagent diagnostic capabilities[27]. - The Group plans to deepen technological research and development, expand its distribution network, and explore emerging markets such as Southeast Asia to drive growth through innovation[37]. Corporate Governance and Management - The company has adopted and complied with the Corporate Governance Code during the year ended December 31, 2024[176]. - The board is committed to high corporate governance standards to safeguard shareholder interests and enhance corporate value[175]. - The Company emphasizes transparency and accountability in its business strategies and policies[175]. - The roles of chairman and chief executive officer are held by Mr. Zhang Shuguang and Mr. Zhang Chunguang respectively, ensuring a balance of power and authority[200]. - The Company has established board committees with specific written terms of reference to clearly define their authority and duties[188]. Shareholder and Financial Management - The Company successfully placed 20,000,000 new ordinary shares on January 31, 2024, raising net proceeds of approximately RMB 1.82 million, which has been fully utilized[93]. - A second placement of 31,000,000 new ordinary shares on March 21, 2024, raised net proceeds of approximately RMB 2.94 million, also fully utilized by December 31, 2024[94]. - A third placement of 31,000,000 new ordinary shares on April 23, 2024, raised net proceeds of approximately RMB 2.74 million, fully utilized by December 31, 2024[95]. - As of December 31, 2024, the total cash and bank balances were approximately RMB 36.5 million, an increase from RMB 32.9 million as of December 31, 2023, primarily due to loan receivable repayments[69]. - The gearing ratio as of December 31, 2024, was approximately 2.2%, down from approximately 4.5% in 2023, indicating improved financial stability[70].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 325.359 million, an increase from RMB 246.29 million in 2023, representing a growth of approximately 32%[5] - Gross profit for the same period was RMB 17.072 million, compared to RMB 16.093 million in 2023, indicating a gross margin improvement[5] - The net loss attributable to owners of the company for the year was RMB 4.158 million, reduced from a loss of RMB 5.782 million in the previous year, showing a decrease in loss of approximately 28%[5] - The company’s basic and diluted loss per share improved to RMB 0.86 from RMB 1.39 in the previous year, indicating better performance on a per-share basis[5] - The company reported a loss before tax of RMB 4,158,000 for the year ended December 31, 2024, compared to a loss of RMB 5,782,000 for the year ended December 31, 2023, indicating a reduction in losses[26] - The group reported a loss attributable to owners of approximately RMB 4.2 million for the fiscal year ending December 31, 2024, a decrease of approximately RMB 1.6 million or about 28.1% from the previous year[61] Revenue Breakdown - Revenue from male infertility in vitro diagnostic reagents was RMB 19,365,000, up from RMB 19,033,000 in the previous year, indicating a growth of about 1.75%[16] - Revenue from the parasite series testing reagents increased to RMB 3,761,000 from RMB 3,059,000, reflecting a significant growth of approximately 22.93%[16] - The revenue from the bioreagents and assisted reproductive products segment reached RMB 25.4 million, a growth of 4.3% compared to 2023, with core product sales increasing by 1.7% to RMB 19.4 million[47] - The sales of male infertility in vitro diagnostic reagents accounted for approximately 76.4% of the total revenue in the biopharmaceuticals and assisted reproductive products and equipment segment, with revenue of approximately RMB 25.4 million, up about RMB 1.0 million or approximately 4.3% from the previous year[52] Research and Development - Research and development expenses increased to RMB 2.825 million from RMB 2.553 million, reflecting a focus on innovation and product development[5] - Research and development expenses for the year ended December 31, 2024, were RMB 2,825,000, reflecting the company's commitment to innovation[19] - Research and development expenses increased by approximately RMB 272,000 or about 10.7% to approximately RMB 2.8 million, mainly due to costs associated with improving existing products and developing a sperm morphology analysis testing kit[59] Assets and Liabilities - Total assets as of December 31, 2024, were RMB 54.723 million, slightly up from RMB 53.436 million in 2023[6] - The total equity of the company increased to RMB 54.048 million from RMB 51.019 million, reflecting a stronger financial position[7] - The total assets as of December 31, 2024, amounted to RMB 65,222,000, while total liabilities were RMB 11,174,000, resulting in a net asset position[19] - The company’s total liabilities increased from RMB 14,296,000 in 2023 to RMB 11,174,000 in 2024, indicating a decrease in financial leverage[21] Cash Flow and Liquidity - Cash and cash equivalents at year-end were RMB 31.495 million, down from RMB 32.935 million in the previous year[6] - As of December 31, 2024, the group had cash and bank balances totaling approximately RMB 36.5 million, an increase from approximately RMB 32.9 million the previous year, primarily due to collections from receivables[62] - The company has adopted a prudent treasury policy to manage its cash balance and maintain healthy liquidity for future growth opportunities[68] Share Capital and Equity - The weighted average number of ordinary shares increased to 482,436,384 in 2024 from 415,962,411 in 2023, an increase of approximately 16%[34] - The total issued share capital as of December 31, 2024, is projected to be RMB 4,432,000[43] - As of December 31, 2024, the total issued shares of the company are 500,472,000[88] Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors[87] - The audit committee has reviewed the audited consolidated financial statements and confirmed compliance with applicable accounting standards[87] - The company has confirmed compliance with the GEM listing rules regarding the minimum public float of 25% since its listing date[79] Future Plans and Strategy - The company plans to continue focusing on market expansion and new product development to drive future growth[4] - The company plans to acquire Hunan Keyue Biotechnology Co., which has rich R&D experience and product lines in the domestic women's health market, to diversify its business[49] - The company aims to integrate its international resources with local capabilities through the acquisition of Keyue Biotechnology, targeting the growing demand in the women's health market[51] - The company will deepen technology development and explore emerging markets such as Southeast Asia to drive growth and create sustainable value for shareholders[51] Compliance and Legal Matters - The company has not engaged in any purchases, sales, or redemptions of its listed securities as of December 31, 2024[77] - There are no significant legal proceedings or arbitrations involving the company as of December 31, 2024[80]

| --- | --- | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------| | | | | Huakang Biomedical Holdings Company Limted 華康生物醫學控股有限公司 (incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司) Stock Code 股份代號 : 8622 | | | | | | | | | 2024 INTERIM REPORT 中期報告 | | CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE" ...

Financial Results - The unaudited consolidated financial results for the six months ending June 30, 2024, have been announced, comparing with the same period in 2023[1]. - Revenue for the six months ended June 30, 2024, was RMB 11,918,000, an increase of 3.95% compared to RMB 11,465,000 for the same period in 2023[84]. - The Group recorded a gross profit of approximately RMB 8.0 million during the Reporting Period, representing an increase of approximately RMB 445,000, or 5.9% from approximately RMB 7.5 million during the Corresponding Period[21]. - The loss attributable to owners of the Company was approximately RMB 1.8 million, compared to approximately RMB 1.5 million during the Corresponding Period, primarily due to increased research and development expenses[24]. - Basic loss per share during the Reporting Period was RMB 0.38 cents, compared to RMB 0.35 cents during the Corresponding Period[25]. Compliance and Governance - The company confirms that the information provided in the report is accurate and complete in all material respects, with no misleading or deceptive elements[5]. - The report adheres to the GEM Listing Rules, ensuring compliance with the regulations set by the Stock Exchange of Hong Kong[6]. - The board of directors collectively accepts full responsibility for the report's contents, ensuring accountability for the information presented[5]. - The company has adopted and complied with the Corporate Governance Code during the reporting period[66]. - The Audit Committee consists of three independent non-executive Directors, ensuring compliance with GEM Listing Rules[77]. Revenue and Profitability - The Group's revenue increased by approximately RMB 453,000, or 4.0%, from approximately RMB 11.5 million for the six months ended June 30, 2023, to approximately RMB 11.9 million for the Reporting Period[17]. - Revenue from the sales of biological reagents and auxiliary reproductive supplies and equipment increased by approximately RMB 516,000, or 4.5% during the Reporting Period[11]. - Other income decreased by approximately RMB 56,000 or approximately 15.0%, from approximately RMB 374,000 during the Corresponding Period to approximately RMB 318,000 during the Reporting Period[23]. - The gross profit margin slightly increased from approximately 65.8% during the Corresponding Period to approximately 67.0% during the Reporting Period[21]. Expenses and Losses - Selling and distribution expenses increased by approximately RMB138,000 or approximately 3.7%, from approximately RMB3.8 million to approximately RMB3.9 million during the Reporting Period[24]. - Administrative expenses rose from approximately RMB4.2 million to approximately RMB4.3 million, representing an increase of approximately RMB52,000 or approximately 1.2%[24]. - Research and development expenses significantly increased by approximately RMB399,000 or approximately 25.0%, from approximately RMB1.6 million to approximately RMB2.0 million during the Reporting Period[24]. - The loss for the period attributable to the owners of the Company was RMB 1,779,000, compared to a loss of RMB 1,455,000 in the prior year, indicating a 22.3% increase in loss[84]. Cash Flow and Financial Position - As of June 30, 2024, the total cash and bank balances of the Group were approximately RMB36.7 million, an increase from RMB32.9 million as of December 31, 2023, primarily due to proceeds from the placing of new shares[39]. - Net cash used in operating activities was RMB (2,819,000), compared to RMB 39,000 in the same period of 2023[94]. - Total current assets increased to RMB 46,664,000 as of June 30, 2024, compared to RMB 40,340,000 at the end of 2023, reflecting a growth of 15.8%[86]. - The Group's total liabilities and financial obligations are being managed effectively, with a focus on maintaining liquidity and operational efficiency[129]. Share Capital and Equity - The issued and fully paid ordinary shares increased to 500,472,000 shares as of June 30, 2024, from 418,472,000 shares as of December 31, 2023, reflecting an increase of about 19.6%[134]. - The total equity attributable to owners of the Company amounted to approximately RMB56.5 million as of June 30, 2024, compared to approximately RMB51.0 million as of December 31, 2023[39]. - The total share capital as of June 30, 2024, was RMB 4,432,000, compared to RMB 3,674,000 as of December 31, 2023, marking an increase of approximately 20.6%[134]. Strategic Initiatives - Future strategic priorities include continuing research and development on diagnostic testing and seeking partnerships to strengthen the supplements business[16]. - The Group intends to commence trading of enzyme-based products through an online sales platform and business-to-business product trading[12]. - The Group aims to apply for medical device registration for rapid point-of-care diagnostic testing using immunoassay techniques once satisfactory results are achieved[16]. Employee and Management Information - The Group had 90 full-time employees as of June 30, 2024, a decrease from 96 employees as of December 31, 2023[41]. - Compensation for key management personnel increased to RMB 1,025,000 for the six months ended June 30, 2024, compared to RMB 962,000 for the same period in 2023, representing a rise of about 6.6%[139]. Risks and Market Position - The company emphasizes the potential risks associated with investing in GEM-listed companies, advising investors to consider these risks carefully[3]. - The company is positioned in the GEM market, which is designed for small and mid-sized companies, indicating a higher investment risk compared to other companies listed on the Stock Exchange[3].

Financial Performance - For the year ended December 31, 2023, sales of healthcare products and supplements decreased by approximately 85.4%[14]. - For the year ended 31 December 2023, the Group's revenue decreased by approximately RMB701,000, or approximately 2.8%, from approximately RMB25.3 million in 2022 to approximately RMB24.6 million[37]. - Revenue from the sales of male fertility IVD reagents accounted for approximately 78.3% of total revenue, amounting to approximately RMB24.3 million, which represented an increase of approximately RMB1.1 million or approximately 4.9% from RMB23.2 million in 2022[38]. - The Group recorded a gross profit of approximately RMB16.1 million for the year ended 31 December 2023, a decrease of approximately RMB821,000, or approximately 4.9%, from approximately RMB16.9 million in 2022[40]. - The gross profit margin decreased from approximately 66.8% in 2022 to approximately 65.3% in 2023[40]. - The healthcare products and supplements segment contributed only 1.3% to the Group's total revenue in 2023, down from approximately 8.5% in 2022[27]. - Other income decreased by approximately RMB 150,000 or 17.0% to approximately RMB 734,000 for the year ended 31 December 2023, primarily due to a decrease in bank interest income[43]. - The Group recorded impairment losses on trade receivables of approximately RMB 1.4 million for the year ended 31 December 2023, compared to approximately RMB 373,000 for the year ended 31 December 2022, representing a significant increase[45]. - The loss attributable to owners of the Company was approximately RMB 5.8 million for the year ended 31 December 2023, an increase of approximately RMB 2.7 million or 88.0% compared to approximately RMB 3.1 million for the year ended 31 December 2022[59]. - Basic loss per share for the year was RMB 1.39 cents, compared to RMB 0.76 cents for the year ended 31 December 2022[60]. Market Trends - The birth rate in the PRC has fallen for six consecutive years, from 12.43‰ in 2017 to 6.39‰ in 2023[14]. - The company maintains a cautious but optimistic outlook on business recovery, anticipating a potential rebound in the birth rate due to cultural factors in the upcoming Year of the Loong[15]. - Despite the challenges from the COVID-19 epidemic, sales of biological reagents and auxiliary reproductive supplies remained stable during the year[14]. Corporate Governance - The company has adopted and complied with the Corporate Governance Code during the year ended December 31, 2023[175]. - The Board conducted reviews of the internal control system to ensure effectiveness and adequacy[176]. - The controlling shareholders have confirmed compliance with the terms of the Deed of Non-Competition for the year ended December 31, 2023[186]. - The company has a clear delineation of businesses between the Group and its controlling shareholders as of December 31, 2023[184]. - The company has a compliance officer appointed on September 25, 2017, to oversee regulatory adherence[165]. - The Board is committed to high corporate governance standards to safeguard shareholder interests[174]. - The Group's business management is collectively overseen by the Board, ensuring decisions are made in the interest of the Group[190]. - The Board has established specific committees to handle various responsibilities, with terms of reference available on the Company and Stock Exchange websites[192]. Human Resources - The Group had 96 full-time employees as of December 31, 2023, an increase from 82 in 2022, with staff costs remaining stable at approximately RMB14.8 million[74][77]. - The financial controller and company secretary has over 18 years of experience in finance and accounting[167]. - The deputy general manager and chief technology officer has over 20 years of experience in the medical devices and IVD reagents industry[169]. Strategic Initiatives - The Group plans to continue research and testing on rapid point-of-care diagnostic testing (POCT) using immunoassay techniques and intends to apply for medical device registration upon achieving satisfactory results[31]. - A memorandum of understanding was signed with Guangdong QianZhu Machine Technology Limited for potential cooperation in the sale and distribution of the Group's biological reagents and POC biomedical testing products in the PRC[33]. - The company has a focus on expanding its product offerings in the male fertility sector, indicating a strategic direction towards new product development[134]. - The company is actively seeking overseas business cooperation opportunities to enhance its market presence[134]. Financial Position - As of 31 December 2023, the Group recorded total cash and bank balances of approximately RMB 32.9 million, a decrease from approximately RMB 33.3 million as of 31 December 2022, mainly due to payments of daily operating expenses[69]. - The equity attributable to owners of the Company was approximately RMB51.0 million as of December 31, 2023, down from approximately RMB56.5 million in 2022[71][72]. - The Group had no outstanding corporate guarantees or significant contingent liabilities as of December 31, 2023[99][103]. - The Group did not hold any significant investments as of December 31, 2023[91]. - The Group did not have any capital commitments for the acquisition of property, plant, and equipment as of December 31, 2023[93]. Leadership - Mr. Zhang Shuguang, aged 53, is the executive Director and chairman of the Board, with over 19 years of experience in the IVD reagents industry in China[122][125]. - Mr. Zhang Chunguang, aged 56, serves as the executive Director and chief executive officer, having over 10 years of experience in the IVD reagents industry in China[122][123]. - Mr. Poon Lai Yin Michael, aged 52, is the executive Director and chief financial officer, responsible for financial management and corporate finance, with over 20 years of experience in corporate management and financial reporting[127][128]. - The management team has extensive experience in their respective fields, which supports the company's operational and strategic initiatives[122][127][134].

HUAKANG BIOMEDICAL HOLDINGS COMPANY LIMITED 華康生物醫學控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8622） 截至二零二三年十二月三十一日止年度的 年度業績公告 香 港 聯 合 交 易 所 有 限 公 司（「聯 交 所」）GEM之特色 香 港 交 易 及 結 算 所 有 限 公 司 及 聯 交 所 對 本 公 告（「本公告」）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 對 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 的 任 何 損 失 承 擔 任 何 責 任。 本公告乃遵照聯交所GEM證 券 上 市 規 則（「GEM上市規則」）之 規 定 而 提 供 有 關 華 康 生 物 醫 學 控 股 有 限 公 司（「本公司」，連 同 其 附 屬 公 司 統 稱「本集團」或「我 們」） 的 資 料，本 公 司 董 事（「董 事」）願 就 本 公 告 共 同 地 及 個 別 地 承 擔 全 部 責 任。董 事 經 作 ...

Revenue Performance - For the nine months ended September 30, 2023, the revenue from the sales of biological reagents and auxiliary reproductive supplies and equipment increased by approximately RMB 545,000, or 3.2%[16]. - The Group's revenue decreased by approximately RMB 977,000, or approximately 5.2%, from approximately RMB 18.8 million to approximately RMB 17.8 million during the Reporting Period[30]. - Sales of male fertility IVD reagents products accounted for approximately 79.5% of total revenue, generating approximately RMB 14.1 million, an increase of approximately RMB 636,000 or approximately 4.7% from the Corresponding Period[31]. - Revenue from healthcare products and supplements significantly decreased by approximately RMB 1.5 million or approximately 96.0%, down to approximately RMB 63,000 during the Reporting Period[32]. - Revenue for the three months ended September 30, 2023, was RMB 6,309,000, a decrease of 9.3% compared to RMB 6,954,000 for the same period in 2022[148]. - For the nine months ended September 30, 2023, total revenue was RMB 17,774,000, a decrease of 5.2% compared to RMB 18,751,000 for the same period in 2022[167]. - Revenue from sales of healthcare products and supplements was RMB 63,000, a significant decrease from RMB 1,585,000 in the same period last year[167]. - The Group's revenue from distributors was RMB 9,160,000, down 3.5% from RMB 9,487,000 in the prior year[167]. - Revenue from non-distributors decreased to RMB 8,614,000, compared to RMB 9,264,000 in the previous year, reflecting a decline of 7.0%[167]. Financial Performance - The Group recorded a gross profit of approximately RMB 11.7 million, representing a decrease of approximately RMB 1.0 million or approximately 8.2% from the Corresponding Period[36]. - The net loss attributable to the owners of the Company for the three months ended September 30, 2023, was RMB 1,042,000, compared to a profit of RMB 386,000 in the same period of 2022[148]. - Total comprehensive expense for the nine months ended September 30, 2023, was RMB 2,906,000, compared to RMB 1,085,000 for the same period in 2022[149]. - Loss before taxation for the nine months ended September 30, 2023, was RMB 2,494,000, compared to a loss of RMB 150,000 in the same period of 2022[189]. - The total equity of the Company as of September 30, 2023, was RMB 54,085,000, a decrease from RMB 58,925,000 as of September 30, 2022[149]. - The Company reported an exchange difference on consolidation of RMB (409,000) for the nine months ended September 30, 2023, compared to RMB (530,000) in the same period of 2022[149]. - The Company did not have any customers accounting for 10% or more of total revenue during the nine months ended September 30, 2023[182]. Research and Development - Research and development expenses increased by approximately RMB 447,000 or approximately 22.6%, from approximately RMB 2.0 million to approximately RMB 2.4 million during the Reporting Period[46]. - Research and development expenses for the nine months ended September 30, 2023, increased to RMB 2,425,000 from RMB 1,978,000 in the same period of 2022, reflecting a growth of 22.6%[148]. - The Group plans to utilize the AFE IP for research and development related to liver protection and commercializing AFE healthcare products[24]. - Future strategic priorities include continuing research on diagnostic testing and seeking partnerships to strengthen the supplements business[26]. Share Capital and Options - The company granted a total of 26,008,000 share options at an exercise price of HK$0.125 per share on 9 April 2020, with the options exercisable until 8 April 2030[58]. - As of 30 September 2023, a total of 19,504,000 share options remained outstanding after 4,000,000 options were exercised during the period[63]. - The company's issued share capital as of 30 September 2023 was approximately HK$4.2 million, with 418,472,000 shares issued at HK$0.01 each[70]. - The fair value of the share options was calculated using a closing share price of HK$0.123 before the grant date, with an expected volatility of 103.1% and a risk-free interest rate of 0.778%[67]. - No share options were granted, exercised, forfeited, cancelled, or lapsed during the nine months ended 30 September 2023, except for the previously mentioned exercise[64]. Corporate Governance - The Company has adopted the Corporate Governance Code and complied with it during the Reporting Period[132]. - The Board is committed to high corporate governance standards to safeguard shareholder interests and enhance corporate value[131]. - The Audit Committee consists of four independent non-executive Directors, ensuring oversight of financial reporting and internal controls[141]. - The Audit Committee has reviewed the unaudited condensed consolidated financial results and confirmed compliance with applicable accounting standards and GEM Listing Rules[143]. - The Company has established an effective internal control system and conducted reviews to ensure its adequacy[133]. - No incidents of non-compliance with the Required Standard by relevant employees were noted during the Relevant Period[138]. Taxation - The PRC Enterprise Income Tax rate for the Group's subsidiary, Shenzhen Huakang, is 15% due to its status as a "New and High Technology Enterprise," with the latest approval obtained in December 2020, valid until 31 December 2023[192]. - The Group had no assessable profit arising from Hong Kong for the nine months ended 30 September 2023 and 2022, thus no provision for Hong Kong Profits Tax was made[191]. - The Company reported a current tax expense of RMB (53,000) for the three months ended 30 September 2023, compared to RMB 246,000 for the same period in 2022[190]. - The current year tax expense for the nine months ended 30 September 2023 was RMB 3,000, compared to RMB 405,000 for the same period in 2022[190]. - The Company and its subsidiaries incorporated in the BVI are tax-exempt[192]. Investments and Assets - On 19 December 2022, Shenzhen Huakang agreed to purchase a 19% equity interest in Hainan Jinnuosai for a cash consideration of RMB1.9 million[76]. - As of September 30, 2023, the transaction for the 19% equity interest has not been completed, with the deadline extended to December 31, 2023[83][84]. - As of September 30, 2023, the Group did not hold any significant investments[85][90]. - The Group did not pledge any significant assets as of September 30, 2023, compared to a motor vehicle pledged for lease liabilities valued at approximately RMB 217,000 as of December 31, 2022[86][91]. - There were no capital commitments for the acquisition of property, plant, and equipment as of September 30, 2023[87][92]. - The Group reported no significant contingent liabilities as of September 30, 2023[88][93]. Directors and Shareholding - The interests of the Directors and chief executive as of September 30, 2023, include Mr. Zhang Shuguang holding 57.8% of the total shares[104][107]. - Crystal Grant Limited holds 238,056,000 shares and 4,000,000 share options, representing a total interest of 242,056,000 shares, which is 57.8% of the total shareholding[117]. - Mr. Zhang Shuguang is deemed to be interested in 144,032,000 shares held by Crystal Grant Limited[120]. - Ever Charming Inc. holds 94,024,000 shares, also contributing to the total interest of 242,056,000 shares[120]. - No directors or chief executives had any short positions in the shares as of September 30, 2023[111]. - The interests stated by all parties are long positions[120]. - The company has confirmed that Mr. Zhang Shuguang and Mr. Chang Yim Yang are acting in concert regarding their shareholdings[120]. - The share options granted to Mr. Zhang Shuguang on April 9, 2020, total 4,000,000[120]. - The aggregate interest of Mr. Chang Yim Yang in the shares is also 242,056,000, reflecting the same percentage of 57.8%[117]. - The company maintains compliance with the Securities and Futures Ordinance regarding the disclosure of interests[111]. Miscellaneous - The company did not engage in any foreign currency hedging policy during the reporting period, monitoring foreign currency exposure closely[74]. - The company maintained a prudent treasury policy to manage cash balances and ensure strong liquidity for future growth opportunities[75]. - The Company has not engaged in any purchases, sales, or redemptions of its listed securities during the Reporting Period[123]. - There were no interests in competing businesses from the Directors or Controlling Shareholders during the Reporting Period[122]. - No significant events affecting the Company occurred between September 30, 2023, and the date of this report[96][99].

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告全 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。 HUAKANG BIOMEDICAL HOLDINGS COMPANY LIMITED 華康生物醫學控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8622） 截 至 二 零 二 三 年 九 月 三 十 日 止 九 個 月 的 第 三 季 度 業 績 公 告 華康生物醫學控股有限公司（「本公司」，及其附屬公司，「本集團」）董事（「董事」） 會（「董事會」）欣然宣佈本集團截至二零二三年九月三十日止九個月的未經審 核簡明綜合財務業績（「二零二三年第三季度報告」）連同二零二二年同期未經 審核比較數字。本公告載列本集團二零二三年第三季度報告 全文，並遵守香 港 聯 合 交 易 所 有 限 公 司GEM（「GEM」）證 券 上 市 規 則（「GEM上 市 規 則」）中 有 關 季度業績初步公告隨附資料的相關規定。二零二三年第三季度報告的印刷版 本將適時寄發予本公司股東，並可於聯交所網站www.hkexn ...

Revenue Performance - For the six months ended June 30, 2023, the revenue from the sales of biological reagents and auxiliary reproductive supplies and equipment increased by approximately RMB 1.0 million, or 9.6%[16] - The healthcare products and supplements segment contributed less than 1% of the Group's total revenue during the Reporting Period, a significant drop from approximately 11.8% in the Corresponding Period[21] - Revenue for the six months ended June 30, 2023, was RMB 11,465,000, a decrease of 2.8% compared to RMB 11,797,000 for the same period in 2022[183] - Revenue from biological reagents and auxiliary reproductive supplies and equipment was RMB 11,402,000, an increase of 9.6% from RMB 10,401,000 in 2022[190] - Revenue from healthcare products and supplements significantly decreased to RMB 63,000 from RMB 1,396,000 in the previous year, representing a decline of 95.5%[190] - Revenue from external customers for the six months ended June 30, 2023, was RMB 11,402,000, an increase of 9.6% compared to RMB 10,401,000 in the same period of 2022[196] - Revenue from Hong Kong decreased significantly to RMB 62,000 from RMB 1,311,000, representing a decline of 95.3% year-over-year[196] - Revenue from Canada dropped to RMB 1,000 from RMB 85,000, indicating a decline of 98.8% compared to the previous year[196] Financial Results - Loss for the period attributable to owners was approximately RMB 1.5 million, compared to approximately RMB 941,000 in the previous period, primarily due to decreased gross profit and other income[46] - The Company reported a basic and diluted loss per share of RMB 0.35 for the six months ended June 30, 2023, compared to RMB 0.24 in the previous year[157] - The company reported an overall loss for the period of RMB 1,455,000, which is an increase from a loss of RMB 941,000 in 2022[190] - Loss before taxation for the period was RMB 1,399,000, compared to a loss of RMB 782,000 in the same period last year[190] - Total comprehensive expense attributable to the owners of the Company for the six months ended June 30, 2023, was RMB 1,780,000, an increase from RMB 1,154,000 in the previous year[157] Expenses and Profitability - Gross profit was approximately RMB 7.5 million, a slight decrease of approximately RMB 111,000 or 1.5%, while gross profit margin increased from approximately 64.9% to approximately 65.8%[33] - Administrative expenses increased by approximately RMB 356,000 or 9.2%, from approximately RMB 3.9 million to approximately RMB 4.2 million, mainly due to costs associated with upgrading the enterprise resource planning system[43] - Research and development expenses increased by approximately RMB 257,000 or 19.2%, from approximately RMB 1.3 million to approximately RMB 1.6 million, reflecting increased manpower for R&D[44] - Total other income for the six months ended June 30, 2023, was RMB 374,000, down 27.4% from RMB 515,000 in the same period of 2022[200] Market and Strategic Developments - The Group's diversification into healthcare products and supplements is a strategic move to expand its market presence[20] - The increase in revenue from the IVD reagents business indicates a positive trend in the male fertility market segment[16] - The Group's focus on R&D in the IVD sector highlights its commitment to innovation and market leadership in reproductive health[15] - The economic impacts of the COVID-19 epidemic have affected sales in the healthcare supplement market, contributing to the revenue decline in that segment[21] - Shenzhen Huakang acquired a 19% equity interest in Hainan Jinnuosai, providing access to intellectual property rights for anoectochilus formosanus extractive (AFE) to develop healthcare products[22] Share Capital and Equity - The Group's issued share capital as of June 30, 2023, was approximately HK$4.1 million, with a total of 414,472,000 shares issued at HK$0.01 each[73] - As of June 30, 2023, the total number of shares issued by the company is 414,472,000[117] - Mr. Zhang Shuguang holds 238,056,000 ordinary shares and 4,000,000 share options, representing a total interest of 242,056,000 shares, which is 58.4% of the total shareholding[116] - The company has not engaged in any purchases, sales, or redemptions of its listed securities during the reporting period[135] Governance and Compliance - The Audit Committee consists of three independent non-executive Directors, ensuring compliance with GEM Listing Rules[150] - The company has adopted the Corporate Governance Code and complied with it during the reporting period[138] - The Board is committed to high corporate governance standards to safeguard shareholder interests and enhance corporate value[137] - The company has established a system of internal controls to ensure effective risk management and financial reporting[144] - All Directors confirmed compliance with the required standards for securities transactions during the relevant period, except for one incident[145]

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告全 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。 HUAKANG BIOMEDICAL HOLDINGS COMPANY LIMITED 華康生物醫學控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8622） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 的 中 期 業 績 公 告 華康生物醫學控股有限公司（「本公司」，及其附屬公司，「本集團」）董事（「董事」）會 （「董事會」）欣然宣佈本集團截至二零二三年六月三十日止六個月的未經審核簡 明綜合財務業績（「二零二三年中期報告」）連同二零二二年同期未經審核比較數 字。本公告載列本集團二零二三年中期報告全文，並遵守香港聯合交易所有限 公司GEM（「GEM」）證券上市規則（「GEM上市規則」）中有關中期業績初步公告隨附 資料的相關規定。本公司二零二三年中期報告的印刷版本將適時寄發予本公司 股東，並可於聯交所網站www.hkexnews.hk及本公司網站www.huakangbiom ...