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

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

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

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

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

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

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全 部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 HUAKANG BIOMEDICAL HOLDINGS COMPANY LIMITED 華康生物醫學控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8622） 截 至 二 零 二 三 年 九 月 三 十 日 止 九 個 月 的 第 三 季 度 業 績 公 告 華康生物醫學控股有限公司（「本公司」，及其附屬公司，「本集團」）董事（「董事」） 會（「董事會」）欣然宣佈本集團截至二零二三年九月三十日止九個月的未經審 核簡明綜合財務業績（「二零二三年第三季度報告」）連同二零二二年同期未經 審核比較數字。本公告載列本集團二零二三年第三季度報告 全文，並遵守香 港 聯 合 交 易 所 有 限 公 司GEM（「GEM」）證 券 上 市 規 則（「GEM上 市 規 則」）中 有 關 季度業績初步公告隨附資料的相關規定。二零二三年第三季度報告的印刷版 本將適時寄發予本公司股東，並可於聯交所網站www.hkexn ...

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

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全 部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 HUAKANG BIOMEDICAL HOLDINGS COMPANY LIMITED 華康生物醫學控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8622） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 的 中 期 業 績 公 告 華康生物醫學控股有限公司（「本公司」，及其附屬公司，「本集團」）董事（「董事」）會 （「董事會」）欣然宣佈本集團截至二零二三年六月三十日止六個月的未經審核簡 明綜合財務業績（「二零二三年中期報告」）連同二零二二年同期未經審核比較數 字。本公告載列本集團二零二三年中期報告全文，並遵守香港聯合交易所有限 公司GEM（「GEM」）證券上市規則（「GEM上市規則」）中有關中期業績初步公告隨附 資料的相關規定。本公司二零二三年中期報告的印刷版本將適時寄發予本公司 股東，並可於聯交所網站www.hkexnews.hk及本公司網站www.huakangbiom ...

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].