華康生物醫學控股有限公司 (於開曼群島註冊成立之有限公司) (股份代號: 8622) 董事會會議通告 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。 華康生物醫學控股有限公司 (「本公司」) 之董事 (「董事」) 會 (「董事會」) 謹此宣佈，本 公司董事會會議將於二零二五年八月十五日 (星期五) 舉行，藉此 (其中包括) 審議及批准本 公司及其附屬公司於截至二零二五年六月三十日止六個月之未經審核簡明綜合中期業績及其 公佈，以及考慮派發中期股息（如有）及處理任何其他事項。 HUAKANG BIOMEDICAL HOLDINGS COMPANY LIMITED 香港，二零二五年八月五日 於本公告日期，執行董事為張曙光先生、張春光先生、潘禮賢先生及張玉靜女士；非執行董 事為卜素博士及徐明博士；及獨立非執行董事為周國輝博士、王亞純女士及徐永得先生。 本公告的資料乃遵照《香港聯合交易所有限公司的 GEM 證券上市規則》而刊載，旨在提供 有 關本公司的資料；董事 ...

Group 1 - The Hong Kong biotechnology stocks collectively rose, with notable increases in several companies' stock prices [1][2] - Beihai Kangcheng-B saw a rise of nearly 19%, while other companies like Gilead Sciences-B and Ascentage Pharma-B also experienced significant gains of over 15% and 9% respectively [1][2] - The overall trend indicates a positive sentiment in the biotechnology sector, with multiple companies achieving gains of over 5% [1][2] Group 2 - Specific stock performance includes: Beihai Kangcheng-B at 18.99% increase, Gilead Sciences-B at 15.30%, and Ascentage Pharma-B at 9.48% [2] - The market capitalization of these companies varies significantly, with Gilead Sciences-B at approximately 11.477 billion and Ascentage Pharma-B at about 29.86 billion [2] - Other notable performers include Jiahua Bio-B and Beikang Medical-B, both showing increases of over 7% [1][2]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 華康生物醫學控股有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 08622 | 說明 | 普通股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 1,000,000,000 | HKD | | 0.01 | HKD | | 10,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 1,000,000,000 | HKD | | 0.01 | HKD | | 10,000,000 | 本月底法 ...

Company Overview - Huakang Biomedical Holdings Limited has established itself as an expert in male infertility diagnostics after over a decade of research in the assisted reproductive technology market [2] - The company has a professional research team and solid partnerships with hospitals and medical institutions, producing in vitro diagnostic reagents for male infertility, parasite detection, and EB virus testing [2] - Huakang Biomedical is one of the top three manufacturers in China's male infertility in vitro diagnostic reagent market [2] Financial Performance - As of December 31, 2024, Huakang Biomedical reported total revenue of 25.359 million yuan, a year-on-year increase of 2.96% [1] - The company recorded a net profit attributable to shareholders of -4.158 million yuan, with a year-on-year growth of 28.09% [1] - The gross profit margin stands at 67.32%, and the debt-to-asset ratio is 17.13% [1] Market Position and Valuation - The average price-to-earnings (P/E) ratio for the pharmaceutical and biotechnology industry is 5.28 times, with a median of 4.58 times [1] - Huakang Biomedical's P/E ratio is -39.57 times, ranking 88th in the industry [1] - Other companies in the sector have P/E ratios such as: Qingdao Haier Biomedical (0.71), Kingsray Biotechnology (1.05), Baixin International (1.21), Dongrui Pharmaceutical (2.86), and Charoen Pokphand International (4.14) [1] Future Outlook - The company plans to continue investing in research and development of fertility products and introduce high-level international assisted reproductive technologies to China [2] - Huakang Biomedical aims to expand its business along the assisted reproductive technology industry chain, leveraging its strong research capabilities to create value for society [2]

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]

[Corporate Information](index=3&type=section&id=Corporate%20Information) The report provides core corporate information including board members, committee compositions, principal office addresses, and legal advisors as of mid-2024, noting changes such as Mr. Chan Kin Sang's resignation and Dr. Bu Su's appointment - The report provides core corporate information as of mid-2024, including board members, committee compositions, principal office addresses, and legal advisors, with changes noted such as Mr. Chan Kin Sang's resignation and Dr. Bu Su's appointment[6](index=6&type=chunk)[7](index=7&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=6&type=section&id=Business%20Review) The Group's core operations are divided into Biologics and Assisted Reproductive Products, and Health Products and Supplements, with core In Vitro Diagnostic (IVD) reagent revenue growing by 4.5% driven by male infertility IVD reagents, alongside plans to diversify into enzyme-based products via online and B2B platforms - The Biologics and Assisted Reproductive Products segment is the company's core business, focusing on the Chinese male infertility In Vitro Diagnostic (IVD) reagent market with a portfolio of **30 biologics**[9](index=9&type=chunk)[12](index=12&type=chunk) Biologics Segment Revenue Performance | Item | Change Amount (RMB) | Growth Rate | | :--- | :--- | :--- | | Revenue Growth during the period | Approx. 516,000 | 4.5% | - The Health Products and Supplements segment has expanded to China, Hong Kong, and Canada, with plans to develop e-commerce and B2B trade for enzyme-based products to seek new growth opportunities[10](index=10&type=chunk)[13](index=13&type=chunk) [Future Prospects](index=7&type=section&id=Future%20Prospects) Looking ahead, the Group's strategic focus is on continuous R&D for diagnostic tests, especially immunoassay-based Point-of-Care Testing (POCT), while actively seeking partnerships to strengthen the health products business and advance enzyme-based product trade to diversify operations and enhance shareholder returns - The Group's future strategic priorities include: * Continuous research and development of Point-of-Care Testing (POCT) technology * Seeking partnerships to strengthen the health products business * Developing trade in enzyme-based products[14](index=14&type=chunk)[16](index=16&type=chunk) [Financial Review](index=7&type=section&id=Financial%20Review) In H1 2024, the Group's total revenue slightly increased by **4.0% to RMB 11.9 million**, driven by biologics sales, with gross profit up **5.9%** and gross margin at **67.0%**, but a **25.0% surge in R&D expenses** led to an expanded loss of **RMB 1.8 million** and basic loss per share of **RMB 0.38 cents** Key Financial Indicators for H1 2024 (RMB) | Indicator | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | Approx. 11.9 million | Approx. 11.5 million | +4.0% | | Gross Profit | Approx. 8.0 million | Approx. 7.5 million | +5.9% | | Gross Margin | 67.0% | 65.8% | +1.2 p.p. | | R&D Expenses | Approx. 2.0 million | Approx. 1.6 million | +25.0% | | Loss for the Period | Approx. 1.8 million | Approx. 1.5 million | +20.0% | | Basic Loss Per Share | 0.38 cents | 0.35 cents | +8.6% | [Use of Proceeds from Placing](index=12&type=section&id=Use%20of%20Proceeds%20from%20Placing) In H1 2024, the company completed three share placings, raising a net of approximately **HKD 8.13 million (RMB 7.5 million)** primarily for the Group's working capital outside China, with proceeds from the first two placings fully utilized and the third partially used, expected to be fully deployed by year-end 2024 Overview of 2024 Placing Activities | Placing Order | Completion Date | Number of Shares Placed | Net Proceeds (HKD) | Use and Status | | :--- | :--- | :--- | :--- | :--- | | First | January 31, 2024 | 20,000,000 | Approx. 1.99 million | Fully utilized for general working capital outside China | | Second | March 21, 2024 | 31,000,000 | Approx. 3.18 million | Fully utilized for general working capital outside China | | Third | April 23, 2024 | 31,000,000 | Approx. 2.96 million | Partially utilized, expected to be fully utilized by year-end | [Liquidity, Financial Resources and Capital Structure](index=14&type=section&id=Liquidity,%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2024, the Group's financial position remained robust, with cash and bank balances increasing to **RMB 36.7 million** due to share placings, the capital gearing ratio (based on lease liabilities) decreasing from **4.5% to 3.1%**, indicating lower financial leverage, and total equity rising to **RMB 56.5 million** Financial Position Summary (RMB) | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and Bank Balances | Approx. 36.7 million | Approx. 32.9 million | | Lease Liabilities | Approx. 1.7 million | Approx. 2.3 million | | Capital Gearing Ratio | 3.1% | 4.5% | | Total Equity | Approx. 56.5 million | Approx. 51.0 million | [Other Disclosures](index=10&type=section&id=Other%20Disclosures) During the reporting period, no share options were granted, exercised, or forfeited, with **19,504,000 outstanding options**; the company had no significant acquisitions, disposals, investments, or asset pledges, and the board did not recommend an interim dividend, while the number of full-time employees decreased to **90** as of June 30, 2024 - As of June 30, 2024, the company had **19,504,000 outstanding share options**, with no changes during the reporting period[29](index=29&type=chunk)[30](index=30&type=chunk) - During the reporting period, the Group had no significant acquisitions or disposals, no major investments, no asset pledges, and no material capital commitments or contingent liabilities[48](index=48&type=chunk) - The Board did not recommend the payment of any dividend for the six months ended June 30, 2024[49](index=49&type=chunk) - As of June 30, 2024, the Group had **90 full-time employees**, a decrease from **96** at the end of 2023[39](index=39&type=chunk) [Other Information](index=18&type=section&id=Other%20Information) [Directors' and Shareholders' Interests](index=18&type=section&id=Directors'%20and%20Shareholders'%20Interests) As of June 30, 2024, Chairman Mr. Zhang Shuguang held **28.5%** of the company's shares through his controlled corporation, Crystal Grant Limited, making him the largest shareholder, while Kokusai Limited held **24.1%**, and TGGA, LLC held pledged share interests from both Crystal Grant and Kokusai as a chargee Major Directors' Shareholdings (Long Position) | Director Name | Nature of Interest | Total Interest | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Zhang Shuguang | Interest of controlled corporation/Beneficial owner | 142,672,000 | 28.5% | | Mr. Zhang Chunguang | Beneficial owner | 4,000,000 | 0.8% | | Mr. Pan Lixian | Beneficial owner | 4,000,000 | 0.8% | | Mr. He Jiaming | Beneficial owner | 4,000,000 | 0.8% | Major Shareholders' Shareholdings (Long Position) | Shareholder Name | Nature of Interest | Total Interest | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Crystal Grant | Beneficial owner | 142,672,000 | 28.5% | | Kokusai Limited | Beneficial owner | 120,752,000 | 24.1% | | TGGA, LLC | Person with security interest in shares | 259,424,000 | 51.8% | [Corporate Governance](index=24&type=section&id=Corporate%20Governance) The company complied with the GEM Listing Rules' Corporate Governance Code during the reporting period, with the Board committed to maintaining high standards and reviewing internal control systems, and the Audit Committee having reviewed the unaudited interim financial results, deeming their preparation compliant with applicable accounting standards and disclosure requirements - The company adopted and complied with the Corporate Governance Code during the reporting period, and the Board will continue to monitor and review related practices[64](index=64&type=chunk) - The company adopted a standard code for directors' securities transactions no less exacting than required by the GEM Listing Rules, and all directors confirmed compliance with this standard[66](index=66&type=chunk) - The Audit Committee reviewed this interim financial report, deeming its preparation compliant with accounting standards and listing rules, with adequate disclosures made[79](index=79&type=chunk)[80](index=80&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=28&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Statement of Profit or Loss and Other Comprehensive Income](index=28&type=section&id=Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2024, the company reported revenue of **RMB 11.918 million**, a **4.0% YoY increase**, with gross profit at **RMB 7.989 million**; however, increased selling, administrative, and R&D expenses led to an expanded loss before tax of **RMB 1.779 million**, and a loss attributable to owners of the company of **RMB 1.779 million**, compared to **RMB 1.455 million** in the prior period Condensed Consolidated Statement of Profit or Loss Summary (RMB thousands) | Item | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Revenue | 11,918 | 11,465 | | Gross Profit | 7,989 | 7,544 | | Selling and Distribution Expenses | (3,901) | (3,763) | | Administrative Expenses | (4,258) | (4,206) | | Research and Development Expenses | (1,998) | (1,599) | | Loss Before Tax | (1,779) | (1,399) | | Loss for the Period | (1,779) | (1,455) | | Total Comprehensive Expenses | (2,015) | (1,780) | [Statement of Financial Position](index=29&type=section&id=Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets were **RMB 66.786 million** and total liabilities were **RMB 10.289 million**; net current assets increased to **RMB 46.664 million** from **RMB 40.340 million** at year-end 2023, and total equity rose to **RMB 56.497 million** due to share placings Statement of Financial Position Summary (RMB thousands) | Item | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | Non-current Assets | 10,444 | 11,879 | | Current Assets | 56,342 | 53,436 | | **Total Assets** | **66,786** | **65,315** | | Current Liabilities | 9,678 | 13,096 | | Non-current Liabilities | 611 | 1,200 | | **Total Liabilities** | **10,289** | **14,296** | | **Net Assets/Total Equity** | **56,497** | **51,019** | [Statement of Cash Flows](index=32&type=section&id=Statement%20of%20Cash%20Flows) In H1 2024, the Group experienced a net cash outflow of **RMB 2.819 million** from operating activities and **RMB 0.122 million** from investing activities; however, financing activities generated a net cash inflow of **RMB 6.897 million** due to share placings, resulting in an increase in cash and cash equivalents to **RMB 36.655 million** at period-end Statement of Cash Flows Summary (RMB thousands) | Item | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Net Cash from Operating Activities | (2,819) | 39 | | Net Cash from Investing Activities | (122) | (516) | | Net Cash from Financing Activities | 6,897 | (356) | | Net Increase in Cash and Cash Equivalents | 3,956 | (833) | | Cash and Cash Equivalents at Beginning of Period | 32,935 | 33,303 | | **Cash and Cash Equivalents at End of Period** | **36,655** | **32,142** | [Notes to the Financial Statements](index=33&type=section&id=Notes%20to%20the%20Financial%20Statements) The notes to the financial statements provide detailed explanations of key accounting items, with Note 4 disclosing revenue composition, showing male infertility IVD reagents as the primary source, accounting for approximately **80.6%** of total revenue; segment information indicates the Biologics segment contributed all revenue and most profit, while the Health Products segment recorded a loss, and Note 14 reveals a long aging of trade receivables, with over **32.6%** outstanding for more than 181 days H1 2024 Revenue Composition (RMB thousands) | Product Category | Revenue | Percentage | | :--- | :--- | :--- | | Male Infertility IVD Reagents | 9,606 | 80.6% | | Parasite Series Test Reagents | 1,358 | 11.4% | | EB Virus Test Reagents | 310 | 2.6% | | Assisted Reproductive Products and Equipment | 644 | 5.4% | | **Total** | **11,918** | **100.0%** | Segment Results (RMB thousands) | Segment | H1 2024 Revenue | H1 2024 Results | | :--- | :--- | :--- | | Biologics and Assisted Reproductive Products | 11,918 | 547 | | Health Products and Supplements | – | (705) | - Trade receivables aging analysis shows that as of June 30, 2024, net receivables over **181 days old** amounted to **RMB 3.146 million**, representing **32.6%** of the total[125](index=125&type=chunk) - The company issued **82,000,000 new shares** through three placings in H1 2024, bringing the total number of issued shares to **500,472,000**[132](index=132&type=chunk)

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].

Financial Performance - For the year ended December 31, 2023, the company reported total revenue of RMB 24,629,000, a decrease of 2.77% from RMB 25,330,000 in 2022[6]. - The gross profit for the same period was RMB 16,093,000, down 4.84% from RMB 16,914,000 in the previous year[6]. - The company incurred a loss attributable to owners of RMB 5,782,000, compared to a loss of RMB 3,075,000 in 2022, representing an increase in loss of 88.06%[6]. - The total loss before tax for the year was RMB 5,782,000, compared to a loss of RMB 3,075,000 in 2022, reflecting a deterioration in financial performance[22][23]. - The company reported a basic and diluted loss per share of RMB 1.39, compared to RMB 0.76 in 2022, marking an increase in loss per share of 83.55%[6]. - The company reported a basic loss per share of RMB 5,782,000 for the year ended December 31, 2023, compared to RMB 3,075,000 in 2022[37]. - The company recorded a significant increase in trade receivables impairment losses to approximately RMB 1.4 million, compared to approximately RMB 373,000 in the previous year, attributed to the deteriorating repayment ability of distributors due to the economic situation in China[64]. Revenue Segmentation - The revenue from the biopharmaceutical and assisted reproductive products and equipment segment was RMB 24,314,000, representing an increase of 4.91% from RMB 23,177,000 in the previous year[22]. - The health products and supplements segment generated revenue of RMB 315,000, down from RMB 2,153,000, indicating a significant decline of 85.32%[22]. - Sales in the health products and supplements segment dropped significantly to account for only 1.3% of total revenue, down from 8.5% in the previous year due to increased competition and the impact of COVID-19[54]. - Revenue from the in vitro diagnostic reagent business increased by approximately RMB 1.1 million, representing a growth rate of 4.9%[53]. - External customer revenue for China in 2023 was RMB 24,314,000, up from RMB 23,177,000 in 2022, representing a growth of approximately 4.9%[29]. - Total external customer revenue decreased from RMB 25,330,000 in 2022 to RMB 24,629,000 in 2023, a decline of about 2.8%[29]. Expenses and Costs - Research and development expenses for the year were RMB 2,553,000, slightly up from RMB 2,483,000 in 2022, indicating a focus on innovation[6]. - The administrative expenses for the year were RMB 3,287,000, an increase from RMB 2,982,000 in the previous year[22][23]. - Other income for 2023 was RMB 734,000, compared to RMB 884,000 in 2022, reflecting a decrease of approximately 16.9%[32]. - The company reported a gross margin decrease from 66.8% to 65.3%[62]. - The company has established a prudent treasury policy to manage cash reserves and maintain healthy liquidity for future growth opportunities[78]. Assets and Liabilities - The total assets as of December 31, 2023, were RMB 53,436,000, a marginal increase from RMB 53,423,000 in 2022[7]. - The company's cash and cash equivalents stood at RMB 32,935,000, down from RMB 33,303,000 in the previous year, reflecting a decrease of 1.10%[7]. - The net current assets decreased to RMB 40,340,000 from RMB 43,642,000, indicating a decline of 7.00%[7]. - Total liabilities as of December 31, 2023, were RMB 14,296,000, with the biotechnology segment accounting for RMB 6,806,000[25]. - The total trade receivables net of credit loss allowance stood at RMB 9,683,000 in 2023, slightly up from RMB 9,470,000 in 2022[41]. Shareholder Information - The total number of issued shares as of December 31, 2023, was 418,472,000[101]. - Mr. Zhang Shuguang holds 51.0% of the company's shares, totaling 213,256,000 shares[100]. - Major shareholder Crystal Grant holds 209,256,000 ordinary shares and 4,000,000 options, representing 51.0% of total equity[104]. - Wealthy Pride Investment Limited, controlled by Lau Lai Yee, holds 28,800,000 shares, accounting for 6.9% of total equity[104]. - The major shareholders collectively hold a significant portion of the company's equity, indicating strong insider confidence[107]. Corporate Governance and Compliance - The company adheres to the corporate governance code as per GEM listing rules effective from December 31, 2023[89]. - The audit committee has reviewed the consolidated financial statements and confirmed compliance with applicable accounting standards and GEM listing rules[106]. - The financial data presented in the announcement has been agreed upon by the auditors, Zhongshen Zhonghuan CPA Limited[108]. - The company emphasizes the accuracy and completeness of the information provided in the announcement, ensuring no misleading or fraudulent elements[112]. - The company confirmed compliance with the GEM listing rules regarding a minimum public float of 25% since the listing date until the announcement date[96]. Future Plans and Strategies - The company plans to continue focusing on research and development to enhance its product offerings and market position[5]. - The company plans to continue research and development in rapid testing based on immune testing technology, aiming for medical device registration after satisfactory results[57]. - The company aims to enhance its health supplement business by seeking partners and distributors to promote the "Nutronic" brand more effectively[57]. - The company plans to raise funds through share placements, with a maximum of 82 million new shares at HKD 0.105 per share, expected to generate approximately HKD 1.99 million for general operating funds[86]. - A second share placement agreement was established for up to 62 million new shares at HKD 0.096 per share, with an updated price of HKD 0.104 per share, expected to raise approximately HKD 3.18 million[86].