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].

Revenue Performance - For the six months ended June 30, 2021, the revenue from the sales of biological reagents and auxiliary reproductive supplies and equipment increased by approximately 45.3% compared to the corresponding period in 2020[18]. - The Group's revenue increased by approximately RMB5.0 million, or approximately 68.9%, to approximately RMB12.2 million during the Reporting Period compared to approximately RMB7.2 million during the Corresponding Period[33]. - Sales of male fertility IVD reagents accounted for approximately 80.9% of total revenue in the biological reagents and auxiliary reproductive supplies segment, generating approximately RMB10.5 million, a 45.3% increase from RMB7.2 million in the Corresponding Period[34]. - The healthcare products and supplements segment generated approximately RMB1.7 million in revenue during the Reporting Period, marking its first contribution as there was no such business in the Corresponding Period[35]. - Revenue for the three months ended June 30, 2021, was RMB 7,284,000, compared to RMB 5,152,000 for the same period in 2020, representing an increase of 41.3%[165]. - Revenue from biological reagents sales was RMB 8,473,000, up from RMB 6,109,000 in the previous year, reflecting a growth of 38.8%[191]. - Revenue from healthcare products and supplements amounted to RMB 1,697,000, compared to zero in the same period last year, indicating a new revenue stream[191]. - Distributors contributed RMB 7,334,000 to total revenue for the six months ended June 30, 2021, compared to RMB 3,655,000 in 2020, marking a 100.5% increase[192]. - Non-distributors generated RMB 4,838,000 in revenue, up from RMB 3,553,000, representing a growth of 36.1%[192]. Financial Performance - The significant revenue increase during the Reporting Period was attributed to the absence of production and sales halts that occurred in the previous year due to the COVID-19 epidemic[18]. - The financial performance reflects a recovery from the impacts of the COVID-19 pandemic experienced in the previous year[18]. - The Group recorded a gross profit of approximately RMB7.6 million, representing a significant increase of approximately RMB2.4 million, or approximately 46.6%, from approximately RMB5.2 million during the Corresponding Period[42]. - The gross profit margin decreased from approximately 71.6% in the Corresponding Period to approximately 62.2% during the Reporting Period, primarily due to lower margins in the healthcare products and supplements segment[43]. - The loss for the period attributable to owners of the Company was approximately RMB2.0 million, a decrease from approximately RMB6.1 million in the Corresponding Period, mainly due to increased revenue and no equity-settled share-based expenses[56]. - Basic loss per share for the reporting period was RMB 0.51, compared to RMB 1.53 in the corresponding period[61]. - The total comprehensive expense attributable to the owners of the Company for the six months ended June 30, 2021, was RMB 2,026,000, compared to RMB 6,110,000 for the same period in 2020, showing a reduction of 66.9%[165]. - The overall loss before taxation decreased to RMB 1,926,000 in 2021 from RMB 6,107,000 in 2020, reflecting an improvement of 68.4%[198]. - The loss for the period was reported at RMB 2,049,000 in 2021, down from RMB 6,107,000 in 2020, indicating a reduction of 66.5%[198]. Expenses and Costs - Selling and distribution expenses increased by approximately RMB963,000 or approximately 34.4%, from approximately RMB2.8 million to approximately RMB3.8 million during the Reporting Period, driven by increased sales and marketing activities[47]. - Research and development expenses increased slightly from approximately RMB1.1 million to approximately RMB1.3 million during the Reporting Period[54]. - Administrative expenses decreased slightly from approximately RMB4.4 million in the previous year to approximately RMB4.3 million during the reporting period[58]. - The company incurred administrative expenses of RMB 1,657,000 in 2021, a decrease from RMB 2,544,000 in 2020, showing a reduction of 34.8%[198]. - Research and development expenses for the six months ended June 30, 2021, were RMB 1,270,000, compared to RMB 1,112,000 for the same period in 2020, an increase of 14.2%[165]. - The company did not report any equity-settled share-based payment expenses in 2021, while it had expenses of RMB 2,660,000 in 2020[198]. Corporate Governance and Management - The Company was listed on GEM of the Stock Exchange on December 13, 2018, offering 100,000,000 new shares at HK$0.5 per share[16]. - The Board is committed to high corporate governance standards and has adopted the Corporate Governance Code during the reporting period[149]. - The Board conducted reviews of the internal control system to ensure its effectiveness and adequacy[150]. - The company has adopted a code of conduct regarding securities transactions by the Directors, confirming compliance during the Relevant Period[154]. - The company will continue to monitor and review its corporate governance practices to ensure compliance with the Corporate Governance Code[149]. Future Outlook and Strategy - The Group continues to focus on research and development to expand its product range in the IVD sector[17]. - The management is optimistic about future growth prospects in the male fertility IVD market in the PRC[18]. - The Group plans to optimize product design and develop more healthcare-related products, including a children's gummy series and essential nutrients for pregnancy in powder form[28]. - The Group expects greater demand for male fertility IVD reagents and fertility supplements due to the PRC government's three-child policy implemented in May 2021[32]. Cash Flow and Financial Position - As of June 30, 2021, the Group recorded total cash and bank balances of approximately RMB39.8 million, a decrease from approximately RMB41.9 million as of December 31, 2020, primarily due to operating and R&D expenses[83]. - The net cash used in operating activities was RMB 1,889,000 for the six months ended June 30, 2021, an improvement from RMB 5,021,000 in the same period of 2020[171]. - Cash and cash equivalents at the end of the period were RMB 39,800,000, down from RMB 41,944,000, reflecting a decrease of 5.1%[171]. - Total equity decreased to RMB 59,833,000 from RMB 61,859,000, representing a decline of 3.3%[168]. - The company incurred a loss for the period amounting to RMB 2,049,000 for the six months ended June 30, 2021[170]. - The company’s lease liabilities decreased to RMB 1,659,000 from RMB 1,406,000, indicating an increase of 17.9%[167]. - The company’s reserves decreased to RMB 56,324,000 from RMB 58,350,000, a decline of 3.5%[168]. Shareholding and Directors - As of June 30, 2021, Mr. Zhang Shuguang held 240,000,000 ordinary shares and 4,000,000 share options, representing a total interest of 61.0% in the Company[124]. - Mr. Zhang Chunguang, Mr. Poon Lai Yin Michael, and Mr. He Jiaming each held 4,000,000 share options, representing 1.0% of the total shareholding[124]. - The total number of shares in issue as of June 30, 2021, was 400,000,000[125]. - The interests of the Directors and chief executive in the shares and debentures of the Company must be notified to the Company and the Stock Exchange under the Securities and Futures Ordinance[129]. - No significant transactions or contracts involving Directors or controlling shareholders were reported during the reporting period[117][119]. - The company has no changes in Directors' information that require disclosure[141].

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].

Financial Performance - For the year ended December 31, 2020, the Group recorded revenue of approximately RMB 14.0 million, a slight increase from RMB 13.8 million in the corresponding period of 2019[18]. - For the year ended December 31, 2020, the Group's revenue decreased by approximately RMB3.5 million, or approximately 13.7%, from approximately RMB25.5 million in 2019 to approximately RMB22.0 million in 2020[45]. - The Group recorded revenue of approximately RMB14.0 million in the second half of 2020 in China, slightly up from approximately RMB13.8 million in the same period of 2019[21]. - Revenue for the year ended December 31, 2020, decreased by approximately RMB3.5 million or approximately 13.7% to approximately RMB22.0 million from approximately RMB25.5 million for the year ended December 31, 2019[48]. - Gross profit for the year ended December 31, 2020, was approximately RMB14.7 million, a decrease of approximately RMB3.2 million or approximately 17.9% from approximately RMB17.9 million in 2019[52]. - The gross profit margin remained stable at approximately 67.0% for the year ended December 31, 2020, compared to approximately 70.2% in 2019[53]. - Other income increased by approximately RMB390,000 or approximately 150.0% to approximately RMB650,000 for the year ended December 31, 2020, primarily due to government grants related to COVID-19[54]. - The loss attributable to owners of the Company was approximately RMB11.6 million for the year ended December 31, 2020, compared to approximately RMB284,000 in 2019[70]. - Basic loss per share for the year was RMB2.91 cents, compared to RMB0.07 cents for the year ended December 31, 2019[71]. - The adjusted loss before tax for the year ended December 31, 2020, was approximately RMB6.2 million, compared to RMB284,000 for the previous year[74]. Impact of COVID-19 - The COVID-19 epidemic caused a halt in production and sales for over five weeks, significantly impacting business in the first half of 2020[18]. - The Group's factory in China halted production and sales for over five weeks due to the Epidemic, significantly affecting sales from ultimate end customers[33]. - Sales of biological reagents, including male fertility IVD reagents, decreased sharply to approximately RMB19.8 million in 2020 compared to approximately RMB24.2 million in 2019, reflecting a significant impact from the Epidemic[46]. Research and Development - The Group intends to purchase equipment for research and development of the supporting test platform in the future[19]. - The Group has ten recent research projects focused on diagnosing male and female infertility, with plans to complete medical device registration for some projects to be launched in 2021[39]. - The Group intends to further invest in the research and development of POCT, including purchasing raw materials and setting up a new production line for expansion[42]. - The Group completed clinical trials for the sperm nuclear DNA integrity reagent and is proceeding with Class II medical device registration[124]. - The Group submitted Class II medical device registration for improved products, including the "seminal plasma fructose quantitative assay kit" and "seminal plasma neutral alpha-glucosidase quantitative assay kit," which are currently under approval[126]. Sales and Distribution - The Group recognized strong demand for rapid Point-Of-Care diagnostic testing (POCT) and began preliminary selection and evaluation of a supporting test platform in the second half of 2020[19]. - The Group sold products to 22 new direct sale customers and 73 new distributors during the year ended December 31, 2020, expanding its sales channels despite the challenges posed by the Epidemic[37]. - The Group established a new company, Smartronic Limited, holding 49% equity, to facilitate the sales and distribution of Nutronic's supplements through cross-border e-commerce channels in the PRC[25]. - The Group has been granted a total of 23 natural health product licenses for its registered brand "Nutronic" in Canada, with products distributed through various e-commerce platforms[38]. Employee and Management - The Group had 80 full-time employees as of December 31, 2020, an increase from 73 in 2019, with staff costs recognized in profit or loss amounting to approximately RMB 13.7 million[86]. - The Group's existing staff temporarily took on additional responsibilities due to the inability to hire suitable personnel[128]. - The Group recruited 4 sales and marketing personnel and 2 technicians by December 31, 2020, but was unable to meet the expected hiring numbers due to market constraints[132]. - As of December 31, 2020, the Group filled positions for 2 R&D personnel, 2 technicians, and 2 production workers, but faced challenges in hiring due to a limited supply of suitable candidates in the market[128]. Share Options and Financial Management - The Company adopted a Share Option Scheme on January 13, 2020, to incentivize employees and assist in recruitment and retention[135]. - A total of 26,008,000 share options were granted on April 9, 2020, at an exercise price of HK$0.125 per share, with options exercisable until April 8, 2030[136]. - The fair value of the share options granted on April 9, 2020, was approximately RMB 2,660,000, recognized as equity-settled share-based payment expenses[145]. - The expected life of the share options is ten years, with an expected volatility of 103.1%[145]. - The actual utilization of net proceeds included RMB 4,710,000 for developing new products, which accounted for 41.5% of the total proceeds[115]. - The Group allocated RMB 4,011,000 (27.3% of total proceeds) for expanding its sales network and enhancing marketing activities[115]. Corporate Governance - The Group did not recommend payment of a final dividend for the year ended December 31, 2020, consistent with the previous year[78]. - As of December 31, 2020, the Group had no significant contingent liabilities or outstanding corporate guarantees[103]. - As of December 31, 2020, the Group had no outstanding company guarantees or significant contingent liabilities, consistent with the previous year[108]. - No significant events affecting the company occurred from December 31, 2020, to the date of the report[146]. Management Experience - The company’s executive directors have extensive experience in the IVD reagents industry, with over 15 years for Mr. Zhang Shuguang and over 10 years for Mr. Zhang Chunguang[151][154]. - Mr. Pan, the CFO, has over 20 years of experience in financial reporting, business advisory, auditing, accounting, tax, and mergers and acquisitions[161]. - Dr. Chow has more than 20 years of experience in biomedical testing and molecular diagnostics technology, leading commercialization efforts at Thunderbio[169]. - Dr. Cheng has over 25 years of experience in financial reporting, business advisory, auditing, accounting, tax investigation, and liquidation[174]. - Mr. Chan has over 30 years of experience in legal practice in Hong Kong and is currently a partner at Peter K.S. Chan & Co.[181].

Revenue Performance - For the nine months ended September 30, 2020, the Group experienced a significant decrease in revenue from male fertility IVD reagent products, primarily due to the COVID-19 epidemic, which led to a halt in production for approximately five weeks [16]. - Revenue for the nine months ended 30 September 2020 decreased by approximately RMB4.3 million, or 23.4%, to approximately RMB14.1 million compared to RMB18.4 million for the same period last year [27]. - Sales of male fertility IVD reagents accounted for approximately 76.5% of total revenue, with revenue from this segment decreasing by approximately RMB3.7 million, or 25.7%, to approximately RMB10.8 million [32]. - Revenue for the three months ended September 30, 2020, was RMB 6,891,000, a slight increase of 1.7% compared to RMB 6,776,000 for the same period in 2019 [153]. - Total revenue for the three months ended September 30, 2020, was RMB 6,891,000, a slight increase from RMB 6,776,000 in the same period of 2019, representing a growth of 1.7% [170]. - Total revenue for the nine months ended September 30, 2020, was RMB 14,099,000, down from RMB 18,412,000 in the same period of 2019, a decrease of 23.5% [170]. Profit and Loss - For the nine months ended 30 September 2020, the company recorded a loss attributable to owners of approximately RMB 6.6 million, compared to a profit of approximately RMB 1.7 million for the same period in 2019, representing a significant decrease due to reduced revenue [50][53]. - The company reported a loss attributable to owners of RMB 6,602,000 for the nine months ended September 30, 2020, compared to a profit of RMB 1,721,000 in the same period of 2019 [153]. - The basic and diluted loss per share for the nine months ended September 30, 2020, was RMB (1.64) cents, compared to earnings of RMB 0.43 cents in the same period of 2019 [153]. - For the three months ended September 30, 2020, the company reported a loss attributable to owners of RMB 495,000 compared to a profit of RMB 1,498,000 in the same period of 2019, representing a significant decline [196]. Expenses - Gross profit for the nine months ended 30 September 2020 was approximately RMB9.9 million, a decrease of approximately RMB3.3 million, or 25.2%, from RMB13.2 million for the same period last year [33]. - Administrative expenses increased by approximately RMB3.3 million, or 51.9%, from approximately RMB6.3 million to approximately RMB9.6 million, primarily due to non-cash share option expenses and other operational costs [43]. - Research and development expenses increased by approximately RMB 351,000 or 30.3%, from RMB 1.2 million for the nine months ended 30 September 2019 to RMB 1.5 million for the same period in 2020, mainly due to the purchase of raw materials and equipment for product application of chemiluminescence technology [49][52]. - Selling and distribution expenses for the three months ended September 30, 2020, were RMB 1,797,000, an increase of 7.4% compared to RMB 1,673,000 in the same period of 2019 [153]. Impairment and Receivables - Impairment losses on trade receivables were approximately RMB744,000 for the nine months ended 30 September 2020, compared to a reversal of impairment losses of approximately RMB534,000 for the same period in 2019 [41]. - Trade receivables impairment loss for the nine months ended 30 September 2020 was approximately RMB 744,000, an increase from RMB 534,000 for the same period in 2019, primarily due to the deterioration of customers' repayment ability since the outbreak of the pandemic [45]. - Impairment losses on trade receivables for the nine months ended September 30, 2020, were RMB 744,000, a significant increase from a loss of RMB 511,000 in the same period of 2019 [183]. Government Support and Other Income - Other income increased by approximately RMB366,000, or 185.8%, to approximately RMB563,000 due to grants received from the Hong Kong Government under the Employment Support Scheme [35]. - Government grants received in Q3 2020 amounted to RMB 373,000, significantly higher than RMB 21,000 in Q3 2019 [179]. - The company reported total other income of RMB 444,000 for Q3 2020, compared to RMB 81,000 in Q3 2019, marking an increase of 448.1% [179]. Corporate Governance and Compliance - The Company has adopted and complied with the Corporate Governance Code during the nine months ended September 30, 2020 [134]. - The Board is committed to high corporate governance standards to safeguard shareholder interests and enhance corporate value [133]. - The Audit Committee has reviewed the unaudited condensed consolidated financial results for the nine months ended September 30, 2020, and confirmed compliance with applicable accounting standards and GEM Listing Rules [149]. - The Company has confirmed that all Directors complied with the required standards for securities transactions during the relevant period [142]. Share Capital and Options - As of 30 September 2020, the company's issued share capital was HK$4 million, with 400,000,000 shares issued at HK$0.01 each [71]. - The company granted a total of 26,008,000 share options on 9 April 2020, with an exercise price of HK$0.125 per share, all options are exercisable until 8 April 2030 [58][60]. - The weighted average number of ordinary shares in issue for the purpose of basic earnings per share remained constant at 400,000 shares for both the current and previous periods [196]. Future Outlook and Strategy - The Group aims to enhance product competitiveness through increased research and development and market promotion efforts [21]. - The establishment of a laboratory in Beijing is in progress to support research and development in assisted reproductive treatment technologies [25]. - The Group will continue to employ prudent treasury policies to maintain strong liquidity ratios for future growth opportunities [78].

Revenue and Financial Performance - For the six months ended June 30, 2020, the Group experienced a significant decrease in revenue from sales of male fertility IVD reagent products, attributed to a decline in sales in the PRC due to COVID-19, resulting in halted production and sales for approximately five weeks[18]. - The Group's revenue decreased by approximately RMB4.4 million, or approximately 38.1%, to approximately RMB7.2 million for the six months ended 30 June 2020 compared to approximately RMB11.6 million for the same period in 2019[32]. - Revenue from male fertility IVD reagents, which accounted for approximately 84.7% of total revenue, decreased by approximately RMB3.5 million, or approximately 36.5%, to approximately RMB6.1 million for the six months ended 30 June 2020[33]. - For the six months ended 30 June 2020, the loss attributable to the owners of the Company was approximately RMB6.1 million, compared to a profit of approximately RMB223,000 for the same period in 2019, representing a significant decrease in revenue[49]. - Basic loss per share for the period was RMB1.53 cents, compared to earnings per share of RMB0.06 cents for the six months ended 30 June 2019[52]. - Total comprehensive loss attributable to the owners of the Company for the six months ended June 30, 2020, was RMB 6,110,000, compared to a profit of RMB 223,000 in the same period of 2019[167]. Expenses and Cost Management - The Group recorded a gross profit of approximately RMB5.2 million for the six months ended 30 June 2020, representing a decrease of approximately RMB3.3 million or approximately 38.9% from approximately RMB8.5 million for the same period in 2019[36]. - Administrative expenses increased by approximately RMB2.6 million or approximately 58.9% to approximately RMB7.1 million for the six months ended 30 June 2020, mainly due to equity-settled share option expenses[47]. - Research and development expenses increased by approximately RMB280,000 or approximately 33.7% to approximately RMB1.1 million for the six months ended 30 June 2020, attributed to purchasing raw materials and equipment for product development[48]. - Selling and distribution expenses for the six months ended June 30, 2020, were RMB 2,802,000, a slight decrease from RMB 2,918,000 in the same period of 2019[167]. Impact of COVID-19 - The uncertainty of the COVID-19 epidemic is expected to continue affecting the business environment and product sales throughout 2020[18]. - Sales and marketing activities were reduced due to the Epidemic, impacting customer visits and conference attendance[81]. - The expected timeline for utilizing unutilized proceeds has been extended to December 31, 2021, due to delays caused by the Epidemic[74]. Share Options and Capital Management - The Company granted an aggregate of 26,008,000 share options on 9 April 2020, with an exercise price of HK$0.125 per share[55]. - The fair value of the share options granted on 9 April 2020 was determined to be RMB2,660,000 using the binomial model[63]. - The net proceeds from the Share Offer amounted to approximately HK$16.6 million, with approximately HK$11.9 million remaining unutilised as of 1 January 2020[69]. - 41.5% of the net proceeds (HK$6.9 million) were allocated to developing new products and international cooperation projects, with actual utilization at HK$4.2 million[72]. - 27.3% of the net proceeds (HK$4.5 million) were designated for expanding the sales network and enhancing marketing activities, with actual utilization at HK$2.7 million[72]. - 27.9% of the net proceeds (HK$4.6 million) were allocated to developing auxiliary reproductive supply business, with no funds utilized as of June 30, 2020[72]. Corporate Governance and Compliance - The Company adopted and complied with the Corporate Governance Code during the six months ended June 30, 2020[151]. - The Board is committed to high corporate governance standards to safeguard shareholder interests and enhance corporate value[150]. - The Audit Committee consists of three independent non-executive Directors, including Mr. Kwok Chi Shing as Chairman[161]. - The Audit Committee reviewed the unaudited condensed consolidated financial results for the six months ended June 30, 2020, and confirmed compliance with applicable accounting standards and GEM Listing Rules[163]. Human Resources and Employment - As of June 30, 2020, the Group employed 74 full-time employees as of June 30, 2020, an increase from 73 employees as of December 31, 2019[88]. - As of June 30, 2020, the Group filled positions for two R&D personnel, two technicians, and two production workers, but faced challenges in hiring due to limited market supply and the impact of the Epidemic[78]. Future Outlook and Strategic Initiatives - The Group aims to enhance product competitiveness through increased research and development and market promotion efforts, including expanding the product portfolio and strengthening sales networks[24]. - The Group will continue to seek business opportunities to broaden income sources and enhance shareholder value amid unpredictable macroeconomic conditions and the ongoing Epidemic[28]. - The Group entered into several non-legally binding memoranda of understanding for establishing joint ventures related to assisted reproductive treatment and microfluidic technology in the PRC[23]. Financial Position and Assets - Current assets decreased to RMB 58,142,000 as of June 30, 2020, from RMB 63,468,000 as of December 31, 2019[168]. - Trade receivables decreased to RMB 8,592,000 as of June 30, 2020, from RMB 10,079,000 as of December 31, 2019[168]. - Net assets as of June 30, 2020, were RMB 67,235,000, down from RMB 70,685,000 as of December 31, 2019[169]. - The company’s cash and bank balances decreased to RMB 42,042,000 as of June 30, 2020, from RMB 48,793,000 as of December 31, 2019[168]. Regulatory and Reporting Standards - The financial statements are prepared in accordance with applicable Hong Kong Financial Reporting Standards (HKFRSs) and the disclosure requirements of the Hong Kong Companies Ordinance[181]. - The company has not early adopted any new and revised HKFRSs that have been issued but not yet effective in the current accounting period[182]. - The company has made adequate disclosures in its financial reporting as per legal requirements[163].

Revenue Performance - For the three months ended March 31, 2020, the Group experienced a significant decrease in revenue from sales of male fertility IVD reagent products, attributed mainly to the COVID-19 epidemic, which led to emergency public health measures in various provinces in the PRC[16]. - The Group's revenue decreased by approximately RMB3.0 million, or approximately 59.5%, to approximately RMB2.1 million for the three months ended 31 March 2020 compared to RMB5.1 million for the same period in 2019[26]. - Revenue from male fertility IVD reagents, which accounted for approximately 74.6% of total revenue, decreased by approximately RMB2.7 million, or approximately 64.2%, to approximately RMB1.5 million for the three months ended 31 March 2020[27]. - Total revenue for the three months ended March 31, 2020, was RMB 2,056,000, a decrease of 59.5% compared to RMB 5,071,000 for the same period in 2019[140]. - Revenue from male fertility IVD reagents was RMB 1,534,000, down 64.1% from RMB 4,281,000 in the previous year[140]. - Revenue from distributors decreased to RMB 1,186,000, a decline of 51.0% from RMB 2,425,000 in 2019[142]. Profitability and Loss - The Group recorded a gross profit of approximately RMB1.5 million for the three months ended 31 March 2020, representing a decrease of approximately RMB2.3 million or approximately 60.5% from approximately RMB3.8 million for the same period in 2019[30]. - The company reported a loss before tax of RMB 2,753,000 for Q1 2020, compared to a profit of RMB 35,000 in Q1 2019[123]. - Loss attributable to the owners of the company for the period was RMB 2,753,000, compared to a loss of RMB 148,000 in the previous year[123]. - Basic loss per share for Q1 2020 was RMB 0.69, compared to RMB 0.04 for the same period in 2019[123]. Expenses and Financial Management - Administrative expenses increased by approximately RMB200,000 or approximately 9.7% to approximately RMB2.3 million for the three months ended 31 March 2020[40]. - Selling and distribution expenses increased to RMB 1,428,000 in Q1 2020 from RMB 1,364,000 in Q1 2019, reflecting a rise of 4.7%[123]. - Research and development expenses slightly increased from approximately RMB310,000 for the three months ended 31 March 2019 to approximately RMB417,000 for the same period in 2020[41]. - The Group's finance costs related to lease liabilities increased to RMB 15,000 in 2020 from RMB 8,000 in 2019[161]. - The depreciation of property, plant, and equipment was RMB 468,000 for the three months ended March 31, 2020, compared to RMB 357,000 in 2019[161]. Market Outlook and Strategy - The anticipated growth of the PRC male fertility IVD reagent market is expected to be driven by increasing infertility rates, acceptance of assisted reproductive treatment, rising per capita income, and favorable government policies[16]. - The Group aims to enhance product competitiveness through increased focus on research and development and market promotion, with strategies including expanding the product portfolio and strengthening R&D capabilities[20]. - The Group's strategy includes expanding and consolidating its sales and distribution network and developing auxiliary reproductive supply business[20]. - The Group's management remains optimistic about future market opportunities despite current challenges posed by the epidemic[16]. Government and Regulatory Environment - The PRC government is expected to continue supporting the development of the biomedical industry, which may benefit the Group in the long term[16]. - The implementation of a universal two-child policy in the PRC is expected to contribute positively to the growth of the male fertility IVD reagent market[16]. - The Group's PRC subsidiary, Shenzhen Huakang, is entitled to a concessional tax rate of 15% as a "New and High Technology Enterprise"[155]. - The Group's Shenzhen Huakang subsidiary enjoys a preferential tax rate of 15% due to its status as a "high-tech enterprise" in China[157]. Share Capital and Corporate Governance - As of 31 March 2020, the Company's issued share capital was HK$4 million, with 400,000,000 shares issued at HK$0.01 each[51]. - The Directors do not recommend the payment of any dividend for the three months ended 31 March 2020[71]. - The Company has complied with the Corporate Governance Code during the three months ended March 31, 2020[105]. - The Audit Committee consists of three independent non-executive Directors, ensuring compliance with GEM Listing Rules[113]. - The Company has established an effective internal control system as part of its governance practices[110]. Shareholder Information - As of March 31, 2020, Mr. Zhang Shuguang and his concert party hold a total of 240,000,000 shares, representing 60.0% of the company's total shares issued[86]. - 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[86]. - Gallizul Global Investments Incorporated holds 36,000,000 shares, representing 9.0% of the total shares[94]. - Huang Yan also has interests in a controlled corporation holding 36,000,000 shares, equivalent to 9.0%[94]. - The interests stated are all long positions[88].

Revenue Performance - Revenue from the PRC male fertility IVD reagent market amounted to approximately RMB19.4 million, accounting for approximately 76.3% of the Group's total revenue for the year ended 31 December 2019[19] - Total revenue for the Group decreased from approximately RMB21.0 million in 2018 to RMB19.4 million in 2019, representing a decline of approximately 7.6%[19] - The Group's revenue for the year ended December 31, 2019, decreased by approximately RMB3.2 million, or 11.1%, to approximately RMB25.5 million compared to RMB28.7 million for the year ended December 31, 2018[35] - Revenue from male fertility IVD reagents, which accounted for approximately 76.3% of total revenue, was approximately RMB19.4 million, representing a decrease of approximately RMB1.6 million or 7.6% from RMB21.0 million in 2018[36] - Sales of parasite antibody detection reagents decreased by approximately RMB1.1 million, or 23.1%, from approximately RMB4.5 million in 2018[37] - Sales of auxiliary reproductive supplies and equipment decreased by approximately RMB648,000, or 33.0%, from approximately RMB2.0 million in 2018[38] - Direct sales revenue decreased from approximately RMB 14.1 million in 2018 to approximately RMB 13.0 million in 2019, a decline of RMB 1.1 million or 7.8%[82] - Revenue from sales to distributors decreased by approximately RMB 2.1 million or 14.6%, from approximately RMB 14.6 million in 2018 to approximately RMB 12.4 million in 2019[84] Operational Strategies - The Group focused on expanding its product portfolio and improving existing product offerings, as well as strengthening research and development capabilities[18] - The Group actively worked on expanding and consolidating its sales and distribution network during the year[18] - The Group maintained a stable employee base while cultivating and recruiting talented employees[18] - The Group emphasized international cooperation as part of its strategic initiatives[18] - The Group successfully developed a cost-efficient sales-centered philosophy aimed at serving the best interests of shareholders[18] - The Group's operational management methods were enhanced to improve execution capability and competitiveness[18] - The Group's strategy includes expanding the product portfolio and improving existing offerings, strengthening R&D capabilities, and developing auxiliary reproductive products[72] - The Group signed a non-legally binding memorandum of understanding for a joint venture in Hong Kong with an Australian fertility group to develop assisted reproductive technologies[73] Research and Development - The Group appointed Dr. Tian Long as a medical advisor to strengthen its R&D capacity in male fertility IVD reagents and auxiliary reproductive supplies[30] - Research and development expenses increased by approximately RMB288,000 or 19.5% to approximately RMB1.8 million for the year ended 31 December 2019, attributed to more research projects initiated[55] - Research and development expenses increased from RMB 1.5 million in 2018 to RMB 1.8 million in 2019, representing a growth of approximately RMB 288,000 or 19.5%[60] - The Group completed clinical trials for the sperm nuclear DNA integrity reagent and is planning to proceed with registration as of December 31, 2019[128] - The Group submitted Class II medical device registrations for improved products, including the "seminal plasma fructose quantitative assay kit" and "seminal plasma neutral alpha glucosidase quantitative assay kit" to the Guangdong Food and Drug Administration[129] Financial Performance - Gross profit decreased by approximately RMB3.7 million or 17.1% to approximately RMB17.9 million for the year ended 31 December 2019, compared to approximately RMB21.6 million for the year ended 31 December 2018[42] - The gross profit margin remained relatively stable at approximately 70.2% for the year ended 31 December 2019, compared to approximately 75.3% for the year ended 31 December 2018[43] - Selling and distribution expenses increased by approximately RMB2.7 million or 65.9% to approximately RMB6.8 million for the year ended 31 December 2019, primarily due to increased staff costs and marketing expenses[50] - Administrative expenses rose by approximately RMB4.0 million or 70.2% to approximately RMB9.7 million for the year ended 31 December 2019, mainly due to increased professional fees and staff costs[51] - The loss attributable to owners of the Company was approximately RMB284,000 for the year ended 31 December 2019, compared to approximately RMB459,000 for the year ended 31 December 2018[57] - Basic loss per share for the year was RMB0.07 cents, compared to RMB0.15 cents for the year ended 31 December 2018[58] - Other gains increased by approximately RMB670,000 or 413.6% to approximately RMB508,000 for the year ended 31 December 2019, mainly due to favorable foreign currency translation[45] Market Conditions - The decrease in male fertility IVD reagent sales is attributed to a decline in birth rates in the PRC from 10.94‰ in 2018 to 10.48‰ in 2019[36] - The birth rate in China decreased from 10.94‰ in 2018 to 10.48‰ in 2019, impacting sales of male fertility IVD reagents[67] - The Group anticipates growth in the male fertility IVD reagent market driven by rising infertility rates and supportive government policies[66] Human Resources - The number of sales and marketing personnel increased from 25 in 2018 to 30 in 2019 to support business expansion efforts[81] - The Group was unable to hire the expected number of suitable research and development personnel due to a limited supply of qualified candidates in the market as of December 31, 2019[128] - The Group has filled positions for two research and development personnel, two technicians, and two production workers as of December 31, 2019[128] Financial Management - Total cash and bank balances as of December 31, 2019, were approximately RMB 48.8 million, down from approximately RMB 54.8 million as of December 31, 2018[100] - Lease liabilities as of December 31, 2019, were approximately RMB 1.6 million, with a gearing ratio of approximately 2.3%[101] - Staff costs recognized in profit or loss amounted to approximately RMB 10.2 million for the year ended December 31, 2019, compared to RMB 6.6 million in 2018[103] - The Group did not make any material acquisitions or disposals of subsidiaries and affiliated companies during the year ended December 31, 2019[110] - The Group did not hold any significant investments as of December 31, 2019[111] - The Group's capital structure remained unchanged since the Listing, with equity attributable to owners amounting to approximately RMB 70.7 million as of December 31, 2019[102] - As of December 31, 2019, the Group had capital commitments of approximately RMB 78,000 for the acquisition of property, plant, and equipment, a decrease from RMB 329,000 in 2018[118] Corporate Governance - The company has independent non-executive directors responsible for supervising compliance and corporate governance matters[165] - The company has adopted and complied with the Corporate Governance Code during the year ended December 31, 2019[192] - The Board conducted reviews of the internal control system to ensure effectiveness and adequacy[193] - The company has a non-competition deed in place with controlling shareholders to prevent business competition[200] Use of Proceeds - The net proceeds from the Share Offer amounted to approximately HK$16.6 million after deducting underwriting fees and other expenses[130] - 41.5% of the net proceeds (HK$6.087 million) were allocated to developing new products and improving existing products, with actual expenditure of HK$4.710 million[133] - 27.3% of the net proceeds (HK$4.011 million) were used for expanding the sales network and enhancing marketing activities, with actual expenditure of HK$2.560 million[133] - 27.9% of the net proceeds (HK$4.100 million) were allocated to developing auxiliary reproductive supply business, with no actual expenditure reported[133] - 3.3% of the net proceeds (HK$0.481 million) were used for working capital, with actual expenditure of HK$0.281 million[133] - The remaining unused net proceeds as of December 31, 2019, were placed as bank balances with licensed banks in Hong Kong and PRC[136] - The company is not aware of any material change to the planned use of proceeds as of the date of the report[138]