Revenue Performance - For the three months ended March 31, 2023, the revenue from the sales of biological reagents and auxiliary reproductive supplies increased by approximately RMB 721,000, representing a growth of 14.4%[17]. - The healthcare products and supplements segment's sales dropped significantly to contribute less than 1% of the Group's total revenue, down from approximately 15.4% in the corresponding period[22]. - The Group's revenue slightly decreased by approximately RMB 139,000, or approximately 2.4%, from approximately RMB 5.9 million to approximately RMB 5.8 million during the Reporting Period[28]. - Revenue for the three months ended March 31, 2023, was RMB 5,761,000, a decrease of 2.4% compared to RMB 5,900,000 in the same period of 2022[143]. - Revenue from biological reagents and auxiliary reproductive supplies and equipment was RMB 5,712,000, up 14.5% from RMB 4,991,000 in the previous year[171]. - Sales of healthcare products and supplements dropped significantly to RMB 49,000 from RMB 909,000, representing a decline of 94.6%[171]. - Revenue from external customers in the PRC was RMB 5,712,000, an increase of 14.4% from RMB 4,991,000 in 2022[176]. - Revenue from Hong Kong decreased to RMB 49,000 from RMB 862,000, a decline of 94.3%[176]. - The company reported no revenue from Canada in the current period, down from RMB 47,000 in the previous year[176]. Profitability and Expenses - The Group recorded a gross profit of approximately RMB 3.9 million during the Reporting Period, an increase of approximately RMB 36,000 or approximately 0.9% from approximately RMB 3.8 million during the Corresponding Period[34]. - The gross profit margin increased from approximately 65.1% to approximately 67.3% during the Reporting Period, mainly due to improved profit margins in the sales of biological reagents and auxiliary reproductive supplies[35]. - The loss for the period attributable to owners of the Company was approximately RMB 514,000, a decrease from approximately RMB 681,000 during the Corresponding Period[45]. - Basic loss per share during the Reporting Period was RMB 0.12 cents, compared to RMB 0.17 cents during the Corresponding Period[49]. - Loss before tax improved to RMB 458,000, a reduction of 25.8% from a loss of RMB 617,000 in the prior year[143]. - Total comprehensive expense for the period attributable to owners of the Company was RMB 462,000, a decrease from RMB 643,000 in the same period last year[144]. - Selling and distribution expenses decreased by approximately RMB 297,000 or approximately 13.7%, from approximately RMB 2.2 million to approximately RMB 1.9 million during the Reporting Period[42]. - Research and development expenses increased from approximately RMB 666,000 to approximately RMB 743,000, representing an increase of approximately RMB 77,000 or approximately 11.6%[43]. Research and Development - The Group specializes in the research and development, manufacturing, and sales of a wide range of In-Vitro Diagnostic (IVD) reagents, focusing particularly on the male fertility IVD reagent market in the PRC[16]. - The Group intends to continue research and testing on rapid Point-Of-Care diagnostic testing (POCT) and polymerase chain reaction testing (PCR testing) for male urinary tract infections, with plans to apply for medical devices registration after satisfactory results[23]. - The Group continues to focus on research and development in biological reagents and auxiliary reproductive supplies, indicating ongoing commitment to innovation and market expansion[147]. - The company continues to focus on research and development in the fields of biological reagents and healthcare products[160]. Corporate Governance and Compliance - The Board is committed to high corporate governance standards, ensuring transparency and accountability to safeguard shareholder interests[126]. - The Company has adopted the Corporate Governance Code and complied with its provisions during the reporting period[127]. - The Audit Committee has reviewed the unaudited condensed consolidated financial results and confirmed compliance with applicable accounting standards and GEM Listing Rules[138]. - The Audit Committee consists of three independent non-executive Directors, ensuring effective oversight of financial reporting and internal controls[136]. - No incidents of non-compliance with the Required Standard by relevant employees were noted during the reporting period[133]. - The Board conducted reviews of the internal control system to ensure its effectiveness and adequacy[128]. Share Capital and Equity - The shares of the Company were listed on GEM of the Stock Exchange on December 13, 2018, with an initial share offer of 100,000,000 new shares at HK$0.5 per share[15]. - As of March 31, 2023, the total number of outstanding share options was 23,504,000, with no options granted, exercised, forfeited, or lapsed during the three months ended March 31, 2023[59][60]. - The company's issued share capital as of March 31, 2023, was approximately HK$4.1 million, with 414,472,000 shares issued at HK$0.01 each[65][67]. - The weighted average number of ordinary shares in issue for the purpose of basic earnings per share was 414,472,000 for the three months ended March 31, 2023, compared to 400,000,000 in 2022[194]. - The Group did not declare or pay any dividends during the three months ended March 31, 2023, and 2022[195]. Investments and Acquisitions - On December 19, 2022, the company agreed to purchase a 19% equity interest in Hainan Jinnuosai for a cash consideration of RMB1.9 million[71][74]. - A supplemental agreement was made on February 9, 2023, stipulating that if conditions are not fulfilled by June 30, 2023, the vendor must refund the RMB1.9 million consideration[77]. - The transaction for the 19% equity interest in Hainan Jinnuosai had not been completed as of March 31, 2023[78]. - The company did not hold any significant investments as of March 31, 2023[79]. - The Group did not engage in any significant acquisitions or disposals of subsidiaries and affiliated companies during the reporting period[83][95]. Other Financial Information - Other income decreased by approximately RMB 82,000 or approximately 45.6%, from approximately RMB 180,000 to approximately RMB 98,000 during the Reporting Period[36]. - Total other income for the three months ended March 31, 2023, was RMB 98,000, a decrease of 45.56% from RMB 180,000 in the same period of 2022[182]. - The loss attributable to owners of the Company for the three months ended March 31, 2023, was RMB 514,000, compared to a loss of RMB 681,000 in the same period of 2022, indicating an improvement[194]. - The Group's PRC subsidiary, Shenzhen Huakang, is entitled to a concessional tax rate of 15% due to its recognition as a "New and High Technology Enterprise," with the latest approval valid until December 31, 2023[189]. - The total foreign exchange losses for the three months ended March 31, 2023, were RMB 2,000, slightly down from RMB 3,000 in 2022[184]. - Government grants received decreased to RMB 42,000 in the three months ended March 31, 2023, from RMB 104,000 in the same period of 2022, reflecting a decline of 59.62%[182].

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 三 月 三 十 一 日 止 三 個 月 的 第 一 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三月三十一日止三個月的未經 審核簡明綜合財務業績（「二零二三年第一季報告」）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一季度報告全文，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。本公司二零二三年第一季度報告的印刷 版本將適時寄發予本公司股東，並可於聯交所網站www.hkexnews.hk及本公司網 站ww ...

Financial Performance - For the year ended December 31, 2022, the Group's revenue decreased by approximately RMB797,000, or approximately 3.1%, from approximately RMB26.1 million in 2021 to approximately RMB25.3 million[37]. - Revenue from the male fertility IVD reagents segment was approximately RMB23.2 million for the year ended December 31, 2022, representing a decrease of approximately RMB151,000 or approximately 0.6% from approximately RMB23.3 million in 2021[38]. - Sales of healthcare products and supplements generated approximately RMB2.2 million for the year ended December 31, 2022, a decrease of approximately RMB646,000 or approximately 23.1% from approximately RMB2.8 million in 2021[39]. - The Group recorded a gross profit of approximately RMB16.9 million for the year ended December 31, 2022, an increase of approximately RMB458,000, or approximately 2.8%, from approximately RMB16.5 million in 2021[40]. - The gross profit margin increased from approximately 63.0% in 2021 to approximately 66.8% in 2022, mainly due to improved profit margins in the healthcare products and supplements segment[41]. - Healthcare products and supplements represented approximately 8.5% of the Group's total revenue for the year ended December 31, 2022, down from approximately 10.7% in 2021[31]. - Other income increased by approximately RMB 109,000 or about 14.1% to approximately RMB 884,000 for the year ended December 31, 2022, primarily due to an increase in interest income[45]. - The loss attributable to owners of the company decreased by approximately RMB 1.1 million or about 27.1% to approximately RMB 3.1 million for the year ended December 31, 2022, compared to approximately RMB 4.2 million for the year ended December 31, 2021[56]. Expenses and Costs - Selling and distribution expenses increased by approximately RMB 605,000 or about 7.2% to approximately RMB 9.0 million for the year ended December 31, 2022, primarily due to increased marketing activities during the epidemic[48]. - Administrative expenses rose by approximately RMB 450,000 or about 4.8% to approximately RMB 9.8 million for the year ended December 31, 2022, mainly due to increased staff costs[53]. - Research and development expenses remained stable, increasing slightly by approximately RMB 46,000 or about 1.9% to approximately RMB 2.5 million for the year ended December 31, 2022[54]. Cash and Equity - As of December 31, 2022, the group recorded total cash and bank balances of approximately RMB 33.3 million, a decrease from approximately RMB 36.2 million as of December 31, 2021, mainly due to payments of daily operating expenses[67]. - The equity attributable to owners of the Company amounted to approximately RMB 56.5 million as of December 31, 2022, down from approximately RMB 57.7 million in 2021[72]. - The Group's lease liabilities as of December 31, 2022, were approximately RMB 469,000, a decrease from approximately RMB 1.7 million in 2021[71]. Investments and Projects - In December 2022, the company entered an investment project for anoectochillus formosanus extractive (AFE), aiming to commercialize AFE products for the healthcare market[15]. - The Group plans to continue research on rapid Point-Of-Care diagnostic testing and intends to apply for medical device registration after satisfactory results[33]. - The Group aims to seek partners and distributors with sufficient sales channels and financial resources to promote the "Nutronic" brand more effectively[34]. Corporate Governance - The Company has adopted and complied with the Corporate Governance Code during the year ended December 31, 2022[176]. - The Board conducted reviews of the internal control system to ensure effectiveness and adequacy[177]. - The Company has a code of conduct regarding securities transactions that meets or exceeds the required standards[182]. - The Board is committed to high corporate governance standards to safeguard shareholder interests and enhance corporate value[175]. - The Company will continue to monitor and review its corporate governance practices[176]. Share Options and Capital Management - The Company adopted a Share Option Scheme to incentivise employees and assist in recruitment and retention of high-calibre personnel[108]. - A total of 26,008,000 share options were granted at an exercise price of HK$0.125 per share, with all options exercisable until April 8, 2030[113][114]. - The total number of share options as of December 31, 2022, is 23,504,000[116]. - The exercise price of the share options is HK$0.125, with a closing price of HK$0.125 immediately before the grant date[118]. - The expected life of the share options is ten years, with an expected volatility of 103.1%[119]. Management and Personnel - Mr. He is responsible for evaluating and developing new products related to male fertility and exploring overseas business cooperation opportunities[139]. - Dr. Chow has over 20 years of experience in biomedical testing and molecular diagnostics technology, leading commercialization efforts at Thunderbio[146]. - Dr. Cheng has over 25 years of experience in financial reporting, business advisory, auditing, and accounting[148]. - The financial controller and company secretary has over 17 years of experience in finance and accounting[163]. - The deputy general manager and chief technology officer has over 20 years of experience in the medical devices industry[166].

Huakang Biomedical Holdings Company Limited 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 2022 THIRD QUARTERLY REPORT 第三季度業績報告 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective ...

Revenue Performance - For the six months ended June 30, 2022, the sales of biological reagents and auxiliary reproductive supplies remained stable compared to the same period in 2021[15]. - The Group's revenue decreased by approximately RMB 375,000, or 3.1%, from approximately RMB 12.2 million to approximately RMB 11.8 million during the Reporting Period[28]. - For the six months ended June 30, 2022, total revenue was RMB 11,797,000, a decrease of 3.1% compared to RMB 12,172,000 for the same period in 2021[185]. - Revenue from healthcare products and supplements generated approximately RMB 1.4 million, representing a decrease of approximately RMB 301,000 or 17.7% from approximately RMB 1.7 million in the Corresponding Period[30]. - Revenue from distributors for the six months ended June 30, 2022, was RMB 5,766,000, a decline of 21.4% compared to RMB 7,334,000 in 2021[185]. - Non-distributor revenue increased to RMB 6,031,000, up 24.7% from RMB 4,838,000 in the previous year[185]. - Sales of healthcare products and supplements decreased significantly to RMB 1,396,000, down 17.8% from RMB 1,697,000 in the same period of 2021[185]. - Segment revenue for biological reagents and auxiliary reproductive supplies was RMB 10,401,000 in 2022, a slight decrease of 0.7% from RMB 10,475,000 in 2021[193]. - Revenue from healthcare products and supplements decreased by 17.7% to RMB 1,396,000 in 2022 from RMB 1,697,000 in 2021[193]. Profitability and Expenses - The Group recorded a gross profit of approximately RMB 7.7 million, an increase of approximately RMB 90,000 or 1.2% from approximately RMB 7.6 million during the Corresponding Period[36]. - The gross profit margin increased from approximately 62.2% to approximately 64.9%, attributed to improved profit margins in the healthcare products segment[37]. - Selling and distribution expenses increased by approximately RMB 258,000 or 6.9%, from approximately RMB 3.8 million to approximately RMB 4.0 million, due to increased sales and marketing activities[46]. - Administrative expenses decreased by approximately RMB 461,000 or 10.7%, from approximately RMB 4.3 million to approximately RMB 3.9 million, due to cost control measures[47]. - The loss for the period attributable to owners was approximately RMB 941,000, a decrease from approximately RMB 2.0 million in the Corresponding Period[49]. - Basic loss per share during the Reporting Period was RMB 0.24 cents, compared to RMB 0.51 cents in the Corresponding Period[49]. - The loss before taxation improved to RMB 782,000 in 2022 from a loss of RMB 1,926,000 in 2021[193]. - The company reported a net loss of RMB 941,000 for the period, compared to a net loss of RMB 2,049,000 in the previous year, indicating a significant reduction in losses[193]. Research and Development - The Group completed Class II medical devices registration for the sperm nuclear DNA integrity reagent and filed two Class I medical devices for male fertility IVD reagents during the reporting period[16]. - The commercialisation of new reagents is expected to commence within the current financial year[16]. - Research and development expenses for the six months ended June 30, 2022, were RMB 1,342,000, compared to RMB 1,270,000 for the same period in 2021[159]. - The company is engaged in the research and development of biological reagents and auxiliary reproductive supplies, indicating ongoing investment in innovation and market expansion[167]. Financial Position - As of June 30, 2022, the total cash and bank balances of the Group were approximately RMB 35.2 million, a decrease from RMB 36.2 million as of December 31, 2021, primarily due to daily operating expenses[73][76]. - The equity attributable to owners of the Company amounted to approximately RMB 56.6 million as of June 30, 2022, compared to approximately RMB 57.7 million as of December 31, 2021[75][76]. - Total equity decreased to RMB 56,551,000 from RMB 57,705,000, a decline of 2%[161]. - Current assets decreased to RMB 52,148,000 from RMB 53,664,000, reflecting a decline of 2.8%[160]. - Net current assets stood at RMB 44,517,000, slightly down from RMB 45,027,000, indicating a decrease of 1.1%[160]. - The net cash used in operating activities was RMB 201,000, an improvement compared to RMB 1,600,000 in the same period of 2021[164]. - Cash and cash equivalents at the end of the period were RMB 35,188,000, down from RMB 39,800,000, representing a decrease of 11.5%[164]. - Inventories decreased to RMB 3,288,000 from RMB 4,210,000, reflecting a reduction of 21.9%[160]. - Trade receivables increased to RMB 9,889,000 from RMB 9,399,000, showing a growth of 5.2%[160]. Corporate Governance - The company has established an Audit Committee consisting of three independent non-executive Directors to oversee financial reporting and risk management[152]. - The financial information in the report has not been audited but has been reviewed by the Audit Committee, ensuring compliance with applicable accounting standards[154]. - The Board is committed to high corporate governance standards and has adopted the Corporate Governance Code during the relevant period[141]. - The company will continue to monitor and review its corporate governance practices to ensure compliance with the CG Code[141]. - No substantial shareholders or directors have interests in any competing businesses during the reporting period[130]. Shareholder Information - The total number of shares issued as of June 30, 2022, is 400,000,000[116]. - As of June 30, 2022, Mr. Zhang Shuguang holds a total interest of 244,000,000 shares and options, representing 61.0% of the company's shareholding[114]. - The Company granted a total of 26,008,000 share options at an exercise price of HK$0.125 per share, with all options exercisable until April 8, 2030[62]. - As of June 30, 2022, a total of 23,504,000 share options remained outstanding[65]. - The expected life of the share options is ten years, with an expected volatility of 103.1%[67]. - The company has not reported any significant events affecting its operations since June 30, 2022[103]. - The company has not engaged in any purchases, sales, or redemptions of its listed securities during the reporting period[131].

Revenue Performance - For the three months ended March 31, 2022, the revenue from the sales of biological reagents and auxiliary reproductive supplies increased by approximately 6.5% compared to the same period in 2021[15]. - Revenue from healthcare products and supplements represented approximately 15.4% of the Group's total revenue during the Reporting Period, up from 4.1% in the Corresponding Period[20]. - The Group's revenue increased by approximately RMB1.0 million, or approximately 20.7%, from approximately RMB4.9 million to approximately RMB5.9 million during the Reporting Period[27]. - Revenue for the three months ended March 31, 2022, was RMB 5,900,000, an increase of 20.7% compared to RMB 4,888,000 in the same period of 2021[147]. - Revenue from biological reagents and auxiliary reproductive supplies and equipment was RMB 4,991,000, up from RMB 4,686,000, representing an increase of 6.5% year-over-year[171]. - Sales of healthcare products and supplements increased significantly to RMB 909,000 from RMB 202,000, marking a growth of 350%[171]. - Revenue from external customers in China was RMB 4,991,000, while revenue from Hong Kong was RMB 862,000, indicating a notable increase in the Hong Kong market[176]. Profitability and Expenses - The Group recorded a gross profit of approximately RMB3.8 million, an increase of approximately RMB343,000 or approximately 9.8% from approximately RMB3.5 million during the Corresponding Period[35]. - The gross profit margin decreased from approximately 71.6% to approximately 65.1%, primarily due to lower margins in the healthcare products and supplements segment[36]. - The loss for the period attributable to owners of the Company was approximately RMB681,000, a decrease from approximately RMB1.1 million in the Corresponding Period, primarily due to increased gross profit[49]. - Loss before tax decreased to RMB 617,000 from RMB 1,113,000, indicating a reduction in losses by 44.6% year-over-year[147]. - The total comprehensive expense for the period attributable to owners was RMB 643,000, down from RMB 1,178,000, indicating a 45.5% improvement[147]. - Selling and distribution expenses increased by approximately RMB158,000 or approximately 7.9%, from approximately RMB2.0 million to approximately RMB2.2 million, due to increased sales and marketing activities[45]. - Administrative expenses decreased by approximately RMB370,000 or approximately 17.2%, from approximately RMB2.2 million to approximately RMB1.8 million, due to the termination of professional services[46]. - Research and development expenses increased by approximately RMB114,000 or approximately 20.7%, from approximately RMB552,000 to approximately RMB666,000, mainly for research on PCR testing[47]. Share Capital and Financial Instruments - The company's issued share capital as of March 31, 2022, was HK$4 million, with 400,000,000 shares issued at HK$0.01 each[73]. - The total number of share options outstanding as of March 31, 2022, was 23,504,000, with no options granted, exercised, forfeited, or lapsed during the three months ended March 31, 2022[67]. - The exercise price of the share options is HK$0.125, with an expected life of ten years and expected volatility of 103.1%[69]. - The company has adopted a Share Option Scheme to reward employees and assist in recruitment and retention of high-caliber personnel[59]. - The company did not change its plans on the use of proceeds from the Share Offer during the period from the Listing Date to March 31, 2022[61]. - The Group pledged a motor vehicle for lease liabilities with an aggregate net carrying amount of approximately RMB298,000 as of March 31, 2022[89]. - The Group maintained a prudent treasury policy to manage cash balances and ensure strong liquidity for future growth opportunities[80]. Corporate Governance and Compliance - The Company adopted and complied with the Corporate Governance Code during the Reporting Period[130]. - The Audit Committee consists of three independent non-executive Directors, ensuring oversight of financial reporting and internal controls[137]. - The Board conducted reviews of the internal control system to ensure its effectiveness and adequacy[131]. - All Directors confirmed full compliance with the Required Standard for securities transactions during the Relevant Period[135]. - The Company has established a code of conduct for securities transactions that meets or exceeds GEM Listing Rules standards[135]. - There were no incidents of non-compliance with the Required Standard noted by the Company during the Reporting Period[136]. Market and Strategic Positioning - The Group's focus on the PRC male fertility IVD reagent market highlights its strategic positioning within the healthcare sector[14]. - The introduction of new products and technologies is expected to drive future revenue growth, particularly in the healthcare segment[171]. - The Group continues to explore market expansion opportunities, particularly in international markets such as Canada, where it generated RMB 47,000 in revenue[176]. Shareholder Information - The interests of the controlling shareholder, Mr. Zhang Shuguang, included 240,000,000 ordinary shares, representing 61.0% of the total shareholding[106]. - Mr. Zhang Shuguang and Mr. Chang Yim Yang collectively hold 240,000,000 shares and 4,000,000 share options, representing 61.0% of the total shareholding[115]. - Crystal Grant Limited, wholly owned by Mr. Zhang Shuguang, holds 144,576,000 shares, while Ever Charming Inc., wholly owned by Mr. Chang Yim Yang, holds 95,424,000 shares[118]. - The report includes a section on substantial shareholders' interests and short positions as of March 31, 2022[113]. - The company is actively cooperating and communicating with its major shareholders regarding their interests[118].

Revenue Growth - The Group's revenue from biological reagents and auxiliary reproductive supplies increased by approximately RMB 3.3 million, or 45.3%, in the first half of 2021 compared to the same period in 2020[14]. - Sales of healthcare products and supplements generated revenue of approximately RMB 3.6 million since the launch of the "Nutronic" brand in December 2020[15]. - The Group's revenue increased by approximately RMB4.1 million, or 18.6%, from approximately RMB22.0 million for the year ended 31 December 2020 to approximately RMB26.1 million for the year ended 31 December 2021[40]. - Revenue from healthcare products and supplements represented approximately 10.7% of the Group's total revenue for the year ended 31 December 2021, up from 3.5% in 2020[34]. - Revenue from the male fertility IVD reagents segment was approximately RMB23.3 million, accounting for approximately 75.3% of total revenue, which is an increase of approximately RMB2.1 million or approximately 9.9% from approximately RMB21.2 million in the previous year[45]. - The healthcare products and supplements segment generated approximately RMB2.8 million, a significant increase of approximately RMB2.0 million or approximately 260.7% from approximately RMB776,000 in the previous year[46]. Business Environment and Strategy - The macro environment in the People's Republic of China improved significantly during the first half of 2021, contributing to the recovery of the Group's business[14]. - The growth in revenue slowed down in the third quarter of 2021 due to a rise in new coronavirus infections in the PRC, leading to increased travel restrictions and lockdowns[14]. - The Group anticipates that virus containment measures will remain in place in the near term, affecting business operations[14]. - The Group's performance is closely tied to the ongoing impact of the COVID-19 epidemic on the industry and macroeconomic conditions[14]. - The Group's business strategy includes expanding sales channels through online and offline platforms in the PRC, Hong Kong, and Canada[15]. - The Group's healthcare product sales reflect a strategic shift towards its own registered brand, enhancing brand recognition and market presence[15]. - The overall economic recovery is expected to take more time, impacting the Group's future performance outlook[14]. - The Group's management remains committed to navigating the challenges posed by the pandemic while pursuing growth opportunities[14]. Financial Performance - The Group's gross profit increased to approximately RMB16.5 million, representing a rise of approximately RMB1.8 million or approximately 12.2% from approximately RMB14.7 million in the previous year[47]. - The gross profit margin decreased from approximately 67.0% in 2020 to approximately 63.0% in 2021, primarily due to lower margins in the healthcare products segment[48]. - Selling and distribution expenses increased by approximately RMB1.2 million or approximately 16.9%, from approximately RMB7.1 million in 2020 to approximately RMB8.3 million in 2021, driven by expanded sales and marketing activities[56]. - Administrative expenses decreased by approximately RMB838,000 or approximately 8.2%, from approximately RMB10.2 million in 2020 to approximately RMB9.4 million in 2021[61]. - Research and development expenses increased by approximately RMB184,000 or approximately 8.2%, from approximately RMB2.3 million in 2020 to approximately RMB2.4 million in 2021, mainly due to a new research project[62]. - The loss attributable to owners of the Company decreased to approximately RMB4.2 million in 2021 from approximately RMB11.6 million in 2020, reflecting improved gross profit and reduced foreign exchange losses[68]. - Basic loss per share improved to RMB1.06 cents in 2021 compared to RMB2.91 cents in 2020[69]. - The company reported a loss attributable to owners of approximately RMB 4.2 million for the year ended December 31, 2021, a significant decrease from a loss of approximately RMB 11.6 million for the year ended December 31, 2020[72]. Cash and Equity Position - As of December 31, 2021, total cash and bank balances were approximately RMB 36.2 million, down from approximately RMB 41.9 million as of December 31, 2020[78]. - The gearing ratio as of December 31, 2021, was approximately 2.9%, compared to approximately 4.3% as of December 31, 2020[79]. - The equity attributable to owners of the company amounted to approximately RMB 57.7 million as of December 31, 2021, down from approximately RMB 61.9 million as of December 31, 2020[80]. Share Options and Management - The share option scheme was adopted to incentivize employees and assist in recruitment and retention of high-caliber personnel[110]. - The exercise price of the share options is HK$0.125, with a closing price of HK$0.125 immediately before the grant date[118]. - All existing share options are vested upon granting, and no options were granted, exercised, forfeited, cancelled, or lapsed during the year ended December 31, 2021[119]. - The fair value of the share options was calculated using a binomial model with an expected volatility of 103.1% and a risk-free interest rate of 0.778%[119]. - The company has a management team with extensive experience in the IVD reagents industry, including over 17 years for Mr. Zhang Shuguang and over 10 years for Mr. Zhang Chunguang[125][128]. - Mr. Poon, the chief financial officer, has over 20 years of experience in corporate management and financial reporting[133]. Corporate Governance - The company has adopted and complied with the Corporate Governance Code during the year ended December 31, 2021[176]. - The Board conducted reviews of the internal control system to ensure effectiveness and adequacy[177]. - The overall management of the Group's business is vested in the Board, which is responsible for promoting the success of the Group[192]. - The Board formulates strategies and sets directions to enhance shareholders' value[193]. - The day-to-day management and operation of the Group are delegated to executive Directors and senior management[195]. - The company has established board committees with specific written terms of reference[194]. - The company has a compliance officer to oversee adherence to regulations[167]. - The company has a financial controller responsible for financial management[168]. - The Board consists of seven Directors, including four executive Directors and three independent non-executive Directors[199].

Revenue and Sales Performance - For the nine months ended September 30, 2021, the revenue from the sales of biological reagents and auxiliary reproductive supplies and equipment increased by approximately 18.6% compared to the corresponding period in 2020[19]. - The Group's revenue increased by approximately RMB4.5 million, or approximately 31.7%, from approximately RMB14.1 million in the Corresponding Period to approximately RMB18.6 million in the Reporting Period[34]. - Sales of male fertility IVD reagents accounted for approximately 77.4% of total revenue, generating approximately RMB16.7 million, an increase of approximately RMB2.6 million or 18.6% from the Corresponding Period[35]. - Revenue from healthcare products and supplements, a new segment, was approximately RMB1.8 million during the Reporting Period, with no such business in the Corresponding Period[39]. - Total revenue for the nine months ended September 30, 2021, was RMB 18,569,000, representing a 32% increase from RMB 14,099,000 in the same period of 2020[171]. - Revenue from biological reagents for the nine months ended September 30, 2021, was RMB 15,739,000, up 20% from RMB 13,145,000 in 2020[171]. - Revenue from distributors decreased to RMB 9,051,000 for the nine months ended September 30, 2021, from RMB 7,518,000 in 2020, indicating a 20% increase[173]. - Non-distributor revenue increased to RMB 9,518,000 for the nine months ended September 30, 2021, up from RMB 6,581,000 in 2020, reflecting a 45% growth[173]. - Revenue from external customers in the PRC was RMB 16,726,000 for the nine months ended September 30, 2021, up from RMB 14,099,000 in 2020, representing a growth of 18.5%[184]. Profitability and Expenses - The Group recorded a gross profit of approximately RMB11.8 million, representing an increase of approximately RMB1.9 million or 19.8% from approximately RMB9.9 million in the Corresponding Period[42]. - The gross profit margin decreased from approximately 70.0% in the Corresponding Period to approximately 63.6% in the Reporting Period, mainly due to lower margins in the healthcare products segment[43]. - Selling and distribution expenses increased by approximately RMB758,000 or 16.5%, from approximately RMB4.6 million to approximately RMB5.4 million, attributed to increased sales and marketing activities[52]. - The loss for the period attributable to owners of the Company was approximately RMB2.3 million, a decrease from approximately RMB6.7 million in the Corresponding Period[55]. - The total comprehensive expense attributable to the owners of the Company for the nine months ended September 30, 2021, was RMB 2,325,000, significantly reduced from RMB 6,635,000 in the same period of 2020[157]. - The Company reported a loss for the period attributable to the owners of RMB 2,344,000 for the nine months ended September 30, 2021, compared to a loss of RMB 6,677,000 in the same period of 2020[156]. Research and Development - The management discussion indicates a commitment to research and development in the field of biological reagents and reproductive health[17]. - The Group plans to launch semen biochemical immunoassay equipment and two improved male fertility IVD reagents in late 2021, with further investment in research and development of Point-Of-Care testing[29]. - Research and development expenses increased slightly from approximately RMB 1.5 million in the previous year to approximately RMB 1.7 million during the reporting period[58]. - Research and development expenses for the nine months ended September 30, 2021, were RMB 1,669,000, compared to RMB 1,508,000 in the same period of 2020, reflecting a 10.7% increase[156]. Corporate Governance and Compliance - The Company has adopted a code of conduct for securities transactions by Directors, confirming full compliance during the Relevant Period[145]. - The Board is committed to high corporate governance standards, enhancing transparency and accountability[139]. - The Company has complied with the Corporate Governance Code during the Reporting Period[140]. - The Audit Committee consists of three independent non-executive Directors, ensuring oversight of financial reporting and internal controls[147]. - There were no incidents of non-compliance with the Required Standard by relevant employees noted by the Company[146]. Share Capital and Ownership - The shares of the Company were listed on GEM of the Stock Exchange on December 13, 2018, with a share offer of 100,000,000 new shares at HK$0.5 per share[17]. - The company's issued share capital was HK$4 million, with 400,000,000 issued shares of HK$0.01 each as of September 30, 2021[80]. - The total number of share options outstanding as of September 30, 2021, was 23,504,000, after accounting for 2,000,000 options that were forfeited during the period[73]. - Mr. Zhang Shuguang and Mr. Chang Yim Yang collectively hold 240,000,000 shares and 4,000,000 share options, representing 61.0% of the total shareholding[125]. - The aggregate interest of Mr. Zhang Shuguang and Mr. Chang Yim Yang is deemed to be 244,000,000 shares when including share options[125]. Taxation and Financial Position - The PRC enterprise income tax rate applicable to the Group's subsidiaries remained at 15% during the reporting period[63]. - The current tax expense for the nine months ended September 30, 2021, was RMB 283,000, compared to RMB 282,000 for the same period in 2020, indicating stability in tax obligations[196]. - The Company’s PRC subsidiary, Shenzhen Huakang, is entitled to a concessional tax rate of 15% due to its recognition as a "New and High Technology Enterprise," with the latest approval valid until December 31, 2023[198]. - The Company’s total equity as of September 30, 2021, was RMB 59,534,000, a decrease from RMB 66,710,000 as of September 30, 2020[157]. Operational Highlights - The Group's product portfolio includes 27 biological reagents, with 24 specifically for male fertility IVD, 2 for parasite antibody detection, and 1 for Epstein-Barr virus antibody detection[18]. - The Group's factory in the PRC experienced over five weeks of sales and production halt during the corresponding period in 2020 due to the COVID-19 epidemic, which impacted revenue figures[19]. - The Group's focus is on the PRC male fertility IVD reagent market, indicating a strategic emphasis on this segment[18]. - The Group's subsidiary in the PRC is responsible for the IVD reagents business, highlighting the operational structure[19]. - The Group has launched 12 healthcare products under the "Nutronic" brand and has obtained 24 natural health product licenses in Canada[27]. - A new subsidiary, Nutronic (Guangzhou) Health Foods Limited, was established to enhance local sales and distribution in China[33].

INTERIM REPORT 中期報告 2021 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. Given tha ...

Revenue and Sales Performance - For the three months ended March 31, 2021, the revenue from the sales of IVD reagents and auxiliary reproductive supplies and equipment increased by approximately 127.9% compared to the same period in the previous year[19]. - The Group's revenue increased by approximately RMB2.8 million, or approximately 137.7%, to approximately RMB4.9 million during the Reporting Period compared to approximately RMB2.1 million in the Corresponding Period[28]. - Sales of male fertility IVD reagents accounted for approximately 80.7% of total revenue, generating approximately RMB3.9 million, a 157.0% increase from approximately RMB1.5 million in the Corresponding Period[33]. - The Group's revenue for the three months ended March 31, 2021, was RMB 4,888,000, representing an increase of 137% compared to RMB 2,056,000 for the same period in 2020[150]. - Revenue from distributors was RMB 2,736,000, compared to RMB 1,186,000 in 2020, reflecting a 130% increase[172]. - Major customer A contributed RMB 596,000 to total revenue, which is a 114% increase from RMB 279,000 in the previous year[176]. Profitability and Loss - The Group recorded a gross profit of approximately RMB3.5 million, representing a significant increase of approximately RMB2.0 million, or approximately 130.7%, from approximately RMB1.5 million during the Corresponding Period[36]. - The gross profit margin slightly decreased from 73.8% in the Corresponding Period to approximately 71.6% during the Reporting Period, mainly due to lower margins from healthcare products and supplements[37]. - The Group's loss for the period attributable to owners was approximately RMB1.1 million, a decrease from approximately RMB2.8 million in the Corresponding Period[55]. - Basic loss per share during the Reporting Period was RMB0.29 cents, compared to RMB0.69 cents during the Corresponding Period[56]. - Loss before tax decreased to RMB 1,113,000, a 60% improvement compared to a loss of RMB 2,753,000 in the previous year[151]. - Loss for the period attributable to owners of the Company was RMB 1,149,000, down from RMB 2,753,000 in the same period last year[151]. - The total comprehensive expense for the period ended 31 March 2021 was RMB 1,178,000, which includes an exchange difference on consolidation of RMB (29,000)[152]. Expenses and Costs - Selling and distribution expenses increased by approximately RMB579,000 or approximately 40.5%, from approximately RMB1.4 million to approximately RMB2.0 million during the Reporting Period[48]. - The Group's administrative expenses for the period were RMB 2,155,000, slightly down from RMB 2,255,000 in the previous year[151]. - Staff costs totaled RMB 2,622,000, up from RMB 2,320,000, representing a 13% increase[182]. - The company incurred finance costs of RMB 26,000 for lease liabilities, an increase from RMB 15,000 in 2020[182]. Corporate Governance and Compliance - The Company has complied with the Corporate Governance Code during the reporting period, ensuring high corporate governance standards[134]. - The Board conducted reviews of the internal control system to ensure its effectiveness and adequacy[135]. - The Company has adopted a code of conduct for securities transactions by Directors, ensuring compliance with the required standards[140]. - The internal control systems have been reviewed to ensure effectiveness and compliance with corporate governance codes[144]. - The Company has not noted any incidents of non-compliance with the required standards by relevant employees during the reporting period[141]. - The Company is committed to safeguarding shareholder interests and enhancing corporate value through good governance practices[133]. Share Capital and Ownership - The company's issued share capital as of March 31, 2021, was HK$4 million, with 400,000,000 shares issued at HK$0.01 each[74]. - As of March 31, 2021, the Group had 23,504,000 share options outstanding, with 2,000,000 options forfeited during the period[70]. - As of March 31, 2021, Mr. Zhang Shuguang held 240,000,000 ordinary shares and 4,000,000 share options, representing a total interest of 61.0%[108]. - The total number of shares issued as of March 31, 2021, was 400,000,000[109]. - Mr. Zhang Shuguang and Mr. Chang Yim Yang have been acting in concert regarding their interests in the company since November 16, 2017[110]. - As of March 31, 2021, Crystal Grant and Ever Charming each hold 240,000,000 ordinary shares and 4,000,000 share options, representing a total interest of 244,000,000 shares, which is 61.0% of the shareholding[119]. - Gallizul Global Investments holds 30,000,000 ordinary shares, accounting for 7.5% of the total shareholding[119]. Financial Position and Liquidity - The Group maintained a prudent treasury policy to manage cash balances and ensure strong liquidity for future growth opportunities[77]. - The functional currencies of the Group's operations were mostly denominated in RMB, with no significant foreign exchange risk except for bank balances in HK$, US$, and CAD$[76]. - The Group did not have any significant investments held as of March 31, 2021[85]. - The Group did not have any significant contingent liabilities as of March 31, 2021[88]. - As of March 31, 2021, the net value of the group's lease liabilities secured by vehicles was approximately RMB 407,000, compared to RMB 434,000 as of December 31, 2020[92]. - The company’s total equity amounted to RMB 60,681,000, a decrease from RMB 67,924,000 as of March 31, 2020[152]. Research and Development - The Group plans to complete medical device registration for new research projects to be launched in late 2021, focusing on rapid Point-Of-Care diagnostic testing[26]. - The Group intends to further invest in the research and development of POCT, including purchasing raw materials and setting up a new production line[26]. Taxation - The company is entitled to a concessional tax rate of 15% due to its status as a "New and High Technology Enterprise" in China[185]. - The latest approval for the tax benefit was obtained in December 2020, valid until December 31, 2023[185]. Other Information - The company did not recommend the payment of any dividend for the three months ended March 31, 2021, the same as for the previous year[97]. - No significant events affecting the company occurred from March 31, 2021, to the date of the report[98]. - The company operates primarily in the research and development, manufacturing, and sales of biological reagents and auxiliary reproductive supplies and equipment[154]. - The unaudited condensed consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards (HKFRSs) and comply with the applicable disclosure requirements of the GEM Listing Rules[158]. - The company has not reported any significant changes to its accounting policies following the adoption of new and revised HKFRSs for the financial period beginning on 1 January 2021[160].