后疫情时代，检测需求步入常态化轨道，2024年无疑成为ICL行业的调整与转型关键之年。 有分析指出，当前中国ICL市场正加速迈向整合阶段，头部企业凭借深厚的技术壁垒与显著的规模效 应，持续巩固市场优势；而中小型实验室在成本控制与服务能力上的短板日益凸显，行业资源不断向头 部平台汇聚。这一市场重构趋势，使得像艾迪康控股(09860)这样的ICL头部企业备受市场瞩目。 3月31日，中国ICL服务提供商艾迪康控股发布2024年全年业绩，以亮眼数据为市场交上一份高质量答 卷。 常规业务稳健前行，特检业务增速领跑 据艾迪康控股2024年财报数据显示，公司全年营收29.14亿元(人民币，下同)，毛利率达到37.7%，经调 整净利润达1.63亿元。 此外，从客户拓展维度看，艾迪康常规业务的增长主要得益于公司在客户群体拓展方面的积极布局，成 功赢得包括医疗机构、体检中心、生物制药、CRO在内多元客户的青睐与认可。报告期内，公司客户 数量同比增长8.8%。其中公立医院客户同比增长13%，新开发中标客户数实现翻倍增长，新开发中标额 同比大幅提升203%，充分印证其服务模式的市场认可度。 除此之外，在数字化基建方面，公司加速推进实 ...

艾迪康控股(09860)发布截至2024年12月31日止年度业绩，收益29.14亿元(人民币，下同);母公司拥有人 应占溢利4701.4万元;每股盈利0.07元。 于2024年，公司表现稳健。其中，公司的常规业务收入(不包括COVID-19)增长了8.2%，这一增长得益 于公司特检业务的强劲增长，与2023年同期相比，该业务收入增长超过了18%。其中，不仅肿瘤检测和 妇产科╱新生儿检测等检测项目持续保持强劲的增长势头，2024年年初开始全面投入运营的与Guardant Health Inc.(纳斯达克：GH)合作的中央实验室检测项目也表现出色，为整体特检收入增长贡献了重要力 量。同时，为响应国家医疗控费的要求，公司积极推进共建业务、集采和单设备投放等策略。2024年， 共建业务收入较2023年同期增长62%，这不仅极大地拓宽了公司的市场覆盖面，还扩宽了对客户的服务 供应范围，大幅提升了公司的市场竞争力和行业影响力。 在运营方面，公司继续保持行业领先能力，通过实施多种成本控制措施，于2024年，与2023年相比进一 步降低了10%的试剂采购成本和6%的物流成本，优化了多项关键运营指标。此外，于2024年，与20 ...

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依賴該等內容 而引致的任何損失承擔任何責任。 本公告載有涉及風險及不確定因素的前瞻性陳述。除歷史事實陳述以外的所有陳述均為前瞻性陳 述。該等陳述涉及已知及未知的風險、不確定因素及其他因素，當中部分並非本公司所能控制，且 可導致實際業績、表現或成果與前瞻性陳述所明示或暗示者存在重大差異。 閣下不應依賴前瞻性 陳述作為未來事件的預測。本公司概不負責更新或修訂任何前瞻性陳述，無論是否由於新資料、未 來事件或其他因素所致。 ADICON Holdings Limited 艾迪康控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：9860） 截 至 2024 年 1 2 月 3 1 日止年度之 年度業績公告 董事會欣然宣佈本集團截至2024年12月31日止年度之經審核綜合業績以及2023年 同期之比較數字。 於本公告內，「我們」及「艾迪康」指本公司，如文義另有所指，則指本集團。本公告 內所載的若干金額及百分比數字已作出約整。於本公告內，任何表格、圖表或 ...

ADIC◎N 艾迪康 ADICON HOLDINGS LIMITED 艾 迪 康 控 股 有 限 公 司 (於朗曼群島註冊成立之有限公司) (股份代號：9860) 中 期 報 ਵ 目 錄 | --- | --- | --- | --- | --- | --- | |----------------------------------|-------|-------|-------|-------|-------| | 釋義 | 2 | | | | | | 公司資料 | 4 | | | | | | 主要財務摘要 | 6 | | | | | | 管理層討論及分析 | 7 | | | | | | 企業管治及其他資料 | 17 | | | | | | 獨立審閱報告 | 24 | | | | | | 中期簡明綜合損益及其他全面收益表 | 25 | | | | | | 中期簡明綜合財務狀況表 | 27 | | | | | | 中期簡明綜合權益變動表 | 29 | | | | | | 中期簡明綜合現金流量表 | 31 | | | | | | 中期簡明綜合財務資料附註 | | 33 | | | | 艾 迪 康 控 股 有 限 ...

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依賴該等內容 而引致的任何損失承擔任何責任。 主要財務摘要 本公告載有涉及風險及不確定因素的前瞻性陳述。除歷史事實陳述以外的所有陳述均為前瞻性陳 述。該等陳述涉及已知及未知的風險、不確定因素及其他因素，當中部分並非本公司所能控制，且 可導致實際業績、表現或成果與前瞻性陳述所明示或暗示者存在重大差異。 閣下不應依賴前瞻性 陳述作為未來事件的預測。本公司概不負責更新或修訂任何前瞻性陳述，無論是否由於新資料、未 來事件或其他因素所致。 ADICON Holdings Limited 艾迪康控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：9860） 截 至2024年6月30日止六個月之 中期業績公告 董事會欣然宣佈本集團截至2024年6月30日止六個月之未經審核綜合中期業績以及 2023年同期之比較數字。 於本公告內，「我們」指本公司，如文義另有所指，則指本集團。本公告內所載的若 干金額及百分比數字已作出約整。任何表格、圖表或其他地方所列總數與金 ...

Financial Performance - Total revenue in 2023 decreased by 32.2% year-over-year due to a significant reduction in COVID-related business, but the decline was lower than the industry average[7] - Revenue dropped by 32.2% to RMB 3,297.8 million in 2023 compared to RMB 4,860.6 million in 2022[14] - Net profit for the year fell by 61.7% to RMB 262.3 million in 2023 from RMB 684.9 million in 2022[14] - Revenue for the year ended December 31, 2023, was RMB 3,297.8 million, a decrease of 32.2% compared to RMB 4,860.6 million in 2022, primarily due to a significant decline in demand for COVID-19-related services[25] - Sales cost for 2023 was RMB 1,863.7 million, a decrease of 37.1% from RMB 2,964.4 million in 2022, consistent with the decline in revenue due to reduced COVID-19 testing volumes[26] - Gross profit for 2023 was RMB 1,434.1 million, compared to RMB 1,896.2 million in 2022, with the gross margin increasing to 43.5% from 39.0% due to lower raw material costs, cost control measures, and a shift to higher-margin specialized tests[27] - Net profit decreased by 61.7% to RMB 262.3 million in 2023, compared to RMB 684.9 million in 2022[35] - Revenue for 2023 decreased to RMB 3,297,828 thousand from RMB 4,860,613 thousand in 2022, a decline of 32.2%[158] - Gross profit for 2023 was RMB 1,434,107 thousand, down from RMB 1,896,165 thousand in 2022, a decrease of 24.4%[158] - Net profit attributable to owners of the parent company for 2023 was RMB 234,885 thousand, a significant drop from RMB 680,793 thousand in 2022, a decrease of 65.5%[158] - Total comprehensive income for 2023 was RMB 218,173 thousand, compared to RMB 604,451 thousand in 2022, a decrease of 63.9%[159] - Basic earnings per share for 2023 were RMB 0.34, down from RMB 1.04 in 2022, a decrease of 67.3%[159] Business Growth and Expansion - Excluding COVID-related business, the company's regular business revenue grew by over 15% year-over-year in 2023, with specialty testing revenue increasing by more than 40%[7] - Compared to 2019, the company's total revenue in 2023 increased by over 90%, and the number of customers grew by more than 40%[7] - The company expanded its independent medical laboratory network from 33 to 36 labs by the end of 2023[15] - Specialized testing revenue in areas such as blood, oncology, infections, and maternal-fetal health grew by over 40% in 2023[16] - Collaborative business revenue increased by more than 50% year-over-year in 2023[16] - The number of testing items offered by the company grew from approximately 1,800 in 2018 to over 4,000 by the end of 2023[15] - The company is focusing on expanding into underserved markets and leveraging AI technology to enhance operational efficiency and market responsiveness[8] Operational Efficiency and Innovation - The company's gross margin remained industry-leading, supported by cost control, operational efficiency improvements, and strategic investments in high-growth potential businesses[7] - 20 out of 36 medical laboratories achieved ISO 15189 accreditation, maintaining a leading position in the industry[7] - The company launched a new laboratory information system (LIS) in Jinan, improving report review and generation efficiency by nearly 10 times[7] - AI technology was fully applied in pathology slide reading, driving digital innovation in operations and management[7] - The company completed the development of a new LIS system and upgraded multiple digital platforms in 2023[16] - The integration of big data and AI is transforming the clinical testing industry, improving diagnostic accuracy, reliability, and operational efficiency[23] Environmental and Social Responsibility - The company achieved an annual emission reduction target of 1-3%, demonstrating its commitment to environmental sustainability[7] - The company made charitable donations totaling RMB 1.8 million from the date of listing to December 31, 2023[75] Strategic Partnerships and Market Position - The company's strategic partnership with Guardant Health resulted in the successful launch of liquid biopsy companion diagnostic products in China in September 2023[7] - The company was included in the Hang Seng Composite Index, Stock Connect, and MSCI Index in 2023[16] - The company's top five customers accounted for less than 8% of total revenue for the year ended December 31, 2023[74] - The company's top five suppliers accounted for less than 30% of total purchases for the year ended December 31, 2023[74] Financial Position and Capital Management - Total assets decreased to RMB 4,553.5 million in 2023 from RMB 4,854.2 million in 2022, a decline of 6.2%[13] - Inventory decreased by 23.0% to RMB 176.6 million in 2023, driven by reduced demand for COVID-19-related services[37] - Trade receivables and bills decreased by 18.4% to RMB 1,515.4 million in 2023, reflecting improved collection efforts[38] - Trade payables and bills decreased by 30.2% to RMB 742.1 million in 2023, consistent with reduced cost of sales[40] - Cash and cash equivalents decreased by 42.9% to RMB 959.4 million in 2023, mainly due to RMB 670.0 million in pledged deposits for refinancing offshore bank loans[45] - Contract liabilities increased by 64.6% to RMB 34.7 million in 2023, driven by business expansion and increased customer prepayments[43] - Total interest-bearing bank loans decreased from RMB 1,136.1 million as of December 31, 2022, to RMB 887.5 million as of December 31, 2023, due to refinancing with RMB-denominated loans[46] - Net cash position increased by 44.1% from RMB 544.5 million as of December 31, 2022, to RMB 784.5 million as of December 31, 2023[46] - Capital expenditures decreased by 44.4% from RMB 297.4 million in 2022 to RMB 165.4 million in 2023, primarily due to reduced demand for COVID-19-related services and decreased purchases of property and equipment[48] - The company's current ratio improved from 1.61 in 2022 to 1.88 in 2023, and the quick ratio increased from 1.52 to 1.78 over the same period[48] - The asset-to-equity ratio decreased significantly from 1.86 in 2022 to 0.49 in 2023[48] Corporate Governance and Leadership - LIM Kooi June has been a non-executive director since December 2020 and serves as the Investment Director of Matou Business Consulting (Shanghai) Co., Ltd. since November 2019[57] - LIM Kooi June holds a Bachelor of Laws with Honors from the University of Nottingham and a Professional Accounting Certificate from the Institute of Chartered Accountants in England and Wales[57] - Ye Lin has been an independent non-executive director since June 2023 and previously served as the COO and Director of I-MAB, a Nasdaq-listed biopharmaceutical company[58] - Ye Lin holds an MBA from Cornell University and a Master's degree in Medical Biophysics from the University of Toronto and the Ontario Cancer Institute[59] - Zhang Wei has been an independent non-executive director since June 2023 and has served as an independent director for multiple public companies, including Biostage, Inc. and Dong-E-E-Jiao Co., Ltd[59] - Zhang Wei holds a Doctor of Clinical Medicine from Peking Union Medical College and a Doctor of Medical Management and Policy from Harvard University[59] - Pan Chao, Senior Vice President since July 2021, oversees the overall management of the company's laboratories[60] - Wang Zhihan, CFO and Senior Vice President since September 2020, is responsible for the company's financial strategy, financial management, and investor relations[60] - Wang Zhihan holds a Bachelor of Medical Science from Boston University, a Doctor of Medicine from Boston University School of Medicine, and an MBA from MIT Sloan School of Management[61] - Chu Jianing, Internal Audit Director and Strategic Intelligence Officer since July 2021, manages internal control, risk management, and operational data analysis[62] - Ge Shun, Vice President and Chief Marketing Officer since February 2023, oversees marketing, special inspections, and customer relations[62] - Ge Shun holds a Bachelor of Clinical Medicine from Jiangsu University and an MBA from Fudan University[62] - Hu Yuanyuan, Vice President since October 2018, supervises the Environmental, Health, and Safety (EHS) governance system[62] - Hu Yuanyuan holds a Bachelor's degree in International Economics and Trade from Jiangxi University of Finance and Economics[63] - Lan Jia, Senior Vice President and Administrative Director, joined the company in January 2021 and has extensive experience in financial management and internal control[64] - Li Dan, National Quality Director, has been with the company since April 2019 and oversees laboratory quality control[64] - Luo Zhen, Vice President, joined in March 2023 and is responsible for the company's digital system construction[64] - Sun Guangtao, Senior Vice President and Operations Director, has been with the company since April 2022 and manages the group's operations[66] - Wang Chengdong, Vice President and Eastern Region General Manager, has held various positions in the company since July 2011[66] - Zhang Yu, Financial Vice President, joined in July 2021 and is responsible for the group's financial operations[66] - Wang Zhihan and Su Jiamin serve as Joint Company Secretaries, with Su Jiamin bringing over 20 years of experience in corporate secretarial and compliance services[68] Risk Management and Compliance - The company operates in a highly regulated industry and may be adversely affected by uncertainties and changes in Chinese regulations related to the ICL industry[77] - The company faces risks related to competition, regulatory compliance, service quality control, and the ability to retain and acquire new customers[77] - The company's past financial performance may not be indicative of its future results[77] - The company's ability to compete effectively may be impacted if it fails to keep up with industry and technological developments[77] - The company has identified certain leased properties with land defects, which may require relocation and adversely affect its business, financial condition, and operating results[77] - The company's auditor, Ernst & Young, will retire but is eligible and willing to be reappointed, with a resolution to reappoint them to be proposed at the annual general meeting[80] - ZHOU Mintao has been nominated as a non-executive director candidate to fill the vacancy left by LIM Kooi June, who will not seek re-election[82] - ZHOU Mintao holds a Bachelor's degree in Biochemistry and an MBA from Fudan University, with extensive experience in healthcare and business management[83] Shareholder and Investor Relations - The company has maintained a minimum public float of 25% since its listing, as required by the Hong Kong Stock Exchange[76] - No debt securities were issued by the company during the period from the listing date to December 31, 2023[76] - The company has not been involved in any legal proceedings, arbitrations, or administrative litigations that could have a material adverse effect on its business, financial condition, or operating results[76] - The company's distributable reserves amounted to RMB 1,315.2 million as of December 31, 2023[75] - The company's shareholders have the right to request a special general meeting if they hold at least one-tenth of the paid-up share capital with voting rights[150] - The company's annual general meeting provides an opportunity for shareholders to interact with the board and committees, with auditors also available to address audit-related questions[149] Industry Trends and Market Dynamics - The aging population and increased prevalence of chronic diseases are driving higher demand for diagnostic testing, boosting the volume of tests[20] - Hospitals are increasingly outsourcing clinical testing to ICLs due to cost control pressures from healthcare reforms and regulations like the National Medical Security DRG Grouping and Payment Technical Specifications[21] - ICLs benefit from economies of scale, centralized management, and advanced technology adoption, enabling them to offer a wide range of tests at lower costs compared to hospital labs[22] - ICLs are expanding into lower-tier cities to address regional healthcare resource imbalances, providing comprehensive diagnostic services to county and township-level medical institutions[24] - The Chinese government's healthcare reforms, including the promotion of tiered medical systems and increased investment in medical infrastructure, are driving demand for ICL services[19] Financial Reporting and Auditing - The company's financial statements for 2023 were prepared in accordance with International Financial Reporting Standards (IFRS) and reflect a true and fair view of the company's financial position[152] - The company's financial statements were audited by Ernst & Young, who confirmed compliance with Hong Kong auditing standards and independence from the company[152] - The company's expected credit loss model was developed with the participation of external independent valuers, incorporating forward-looking factors to assess customer repayment ability[153] - The company's audit included evaluating the competence, capability, and objectivity of external independent valuers engaged by management[153] - The company's financial statements disclosed detailed information on expected credit losses for trade receivables and bills receivable in notes 2.4, 3, and 21[153] - Goodwill impairment testing is a key audit matter, with the company's goodwill amounting to RMB 79,802,000, representing 1.8% of total assets[154] - The company conducts annual impairment tests for goodwill based on the recoverable amount of cash-generating units, involving significant judgment and estimates[154] - Management uses an impairment assessment model with key assumptions including estimated revenue growth rate, projected gross margin, terminal growth rate, and pre-tax discount rate[154] - The company's directors are responsible for preparing true and fair consolidated financial statements in accordance with IFRS and Hong Kong Companies Ordinance[155] - The audit committee assists the board in overseeing the financial reporting process[155] - The auditors aim to obtain reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error[156] - The audit involves evaluating the appropriateness of accounting policies, reasonableness of estimates, and adequacy of disclosures[156] - The auditors assess the company's ability to continue as a going concern and the appropriateness of using the going concern basis[156] - The audit partner for this engagement is Ho Siu Fung from Ernst & Young[157] - The audit report was issued on March 28, 2024[157] Subsidiaries and Business Operations - The company operates 36 self-owned laboratories across China, offering over 4,000 medical diagnostic tests, including 1,700 general tests and 2,300 specialized tests, with 20 laboratories accredited by ISO 15189[71] - The company's subsidiaries are primarily engaged in medical testing services and trading of medical testing equipment in China[166] - The company holds 100% equity in its main subsidiaries, including Hangzhou Adicon Medical Laboratory and Shanghai Adicon Medical Laboratory[167] - Wuhan Adicon Medical Laboratory Co., Ltd. was established on November 24, 2009, with a registered capital of RMB 20,000,000 and is 100% owned by the company[168] - Nanjing Adicon Medical Laboratory Co., Ltd. was established on December 4, 2009, with a registered capital of RMB 20,000,000 and is 100% owned by the company[168] - Changsha Adicon Medical Laboratory Co., Ltd. was established on April 19, 2010, with a registered capital of RMB 20,000,000 and is 100% owned by the company[168] - Chengdu Adicon Medical Laboratory Co., Ltd. was established on June 11, 2010, with a registered capital of RMB 20,000,000 and is 100% owned by the company[168] - Shenyang Adicon Medical Laboratory Co., Ltd. was established on March 16, 2011, with a registered capital of RMB 20,000,000 and is 100% owned by the company[168] - Zhengzhou Adicon Medical Laboratory Co., Ltd. was established on August 8, 2012, with a registered capital of RMB 20,000,000 and is 100% owned by the company[168] - Guangzhou Adicon Medical Laboratory Co., Ltd. was established on August 21, 2013, with a registered capital of RMB 20,000,000 and is 100% owned by the company[168] - Tianjin Adicon Medical Laboratory Co., Ltd. was established on June 3, 2014, with a registered capital of RMB 30,000,000 and is 100% owned by the company[168] - Yunnan Adicon Medical Laboratory Co., Ltd. was established on February 2, 2015, with a registered capital of RMB 20,000,000 and is 100% owned by the company[168] - Qingdao Adicon Medical Laboratory Co., Ltd. was established on May 13, 2019, with a registered capital of RMB 11,666,600 and is 60% owned by the company[169] - The company holds a 70% equity stake in Quzhou Aidi Kang Medical Laboratory with a registered capital of RMB 20,000,000[170] - Shenzhen Aidi Kang Medical Laboratory is 60% owned by the company with a registered capital of RMB 13,333,300[170] - Xiamen Aidi Kang Medical Laboratory has a 51% equity stake held by the company and a registered capital of RMB 30,000,000[170] - Shangrao Aidi Kang Medical Laboratory is 61% owned by the company with a registered capital of RMB 3,625,000[170] - Jiangxi Jince Biotechnology is 61% owned by the company with a registered capital of RMB 8,000,000[170] - Zhengzhou Aidi Kang Medical Laboratory is fully owned by the company with a registered capital of RMB 20,000,000[170] - Suzhou Aidi Kang Medical Laboratory has a 51% equity stake held by the company and a

Core Viewpoint - The company reported a significant decline in revenue and profit for the fiscal year ending December 31, 2023, primarily due to reduced demand for COVID-19 related services, although there is a recovery in non-COVID-19 testing services following the lifting of restrictions [1]. Financial Performance - The company achieved revenue of 3.298 billion RMB, a year-on-year decrease of 32.15% [1]. - Profit attributable to equity holders of the parent company was 235 million RMB, down 65.5% year-on-year [1]. - Basic earnings per share were 0.34 RMB [1]. Gross Margin Analysis - The overall gross margin for the fiscal year was 43.5%, compared to 39.0% for the previous year [1]. - The increase in gross margin was attributed to a decrease in raw material costs compared to 2022, various cost control measures implemented in 2023, and a shift towards higher-margin specialized tests [1].

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依賴該等內容 而引致的任何損失承擔任何責任。 本公告載有涉及風險及不確定因素的前瞻性陳述。除歷史事實陳述以外的所有陳述均為前瞻性陳 述。該等陳述涉及已知及未知的風險、不確定因素及其他因素，當中部分並非本公司所能控制，且 可導致實際業績、表現或成果與前瞻性陳述所明示或暗示者存在重大差異。 閣下不應依賴前瞻性 陳述作為未來事件的預測。本公司概不負責更新或修訂任何前瞻性陳述，無論是否由於新資料、未 來事件或其他因素所致。 ADICON Holdings Limited 艾迪康控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：9860） 截 至2023年12月31日止年度之 年度業績公告 董事會欣然宣佈本集團截至2023年12月31日止年度之經審核綜合業績以及2022年 同期之比較數字。 於本公告內，「我們」及「艾迪康」指本公司，如文義另有所指，則指本集團。本公告 內所載的若干金額及百分比數字已作出約整。任何表格、圖表或其他地方所列總數 與金額總和 ...

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 1,644,113 thousand, a decrease of 32.7% from RMB 2,445,614 thousand in the same period of 2022[7]. - Gross profit for the same period was RMB 717,008 thousand, down 27.5% from RMB 989,070 thousand year-over-year[7]. - Net profit for the period was RMB 120,258 thousand, a decline of 68.0% compared to RMB 375,395 thousand in the previous year[7]. - Basic earnings per share decreased to 0.17101 from 0.58226, representing a drop of 70.7%[7]. - Adjusted EBITDA for the six months was RMB 331,503 thousand, down 31.1% from RMB 481,629 thousand in the prior year[7]. - The company reported an adjusted net profit of RMB 183,149 thousand, a decrease of 41.0% from RMB 310,495 thousand year-over-year[7]. - The company's revenue for the six months ended June 30, 2023, was RMB 1,644.1 million, a decrease of 32.8% compared to the same period in 2022[8]. - The net profit for the six months ended June 30, 2023, decreased by 68.0% to RMB 120.3 million from RMB 375.4 million for the same period in 2022[31]. - EBITDA for the six months ended June 30, 2023, was RMB 268.2 million, down from RMB 545.2 million in the same period of 2022, representing a decline of 50.9%[33]. - Basic earnings per share for the six months ended June 30, 2023, was RMB 0.17101, down from RMB 0.58226 in the same period of 2022, a decline of 70.7%[36]. Operational Efficiency and Strategy - The company is focusing on new product development and market expansion strategies to recover from the decline in revenue[7]. - Future outlook includes potential mergers and acquisitions to enhance market presence and operational capabilities[7]. - The company aims to improve operational efficiency through the integration of advanced technologies and AI solutions[7]. - The company plans to enhance its testing capabilities and product portfolio, focusing on expanding its special testing services, which have significantly driven sales growth over the past three years[16]. - The company aims to invest in advanced testing technologies and methods, including mass spectrometry and early cancer screening technologies, to improve operational efficiency[18]. - The company is committed to optimizing IT infrastructure and automating laboratory processes to enhance production efficiency and reduce operational costs[19]. Market and Demand Trends - The decline in testing volume was primarily due to reduced demand for COVID-19 testing following the easing of zero-COVID policies at the end of 2022[8]. - The demand for ICL testing is expected to increase due to the government's promotion of tiered medical services and the growing number of hospitals in lower-tier cities[12]. - The shift in hospital revenue structure towards examination and treatment services is anticipated to drive increased demand for clinical testing and outsourcing to ICLs[12]. - The aging population and improved diagnostic services are driving an increase in testing demand, with a significant rise in chronic disease prevalence[13]. - The outsourcing rate of testing in health check centers is increasing due to growing customer demand for high-quality and cost-effective testing services[13]. Financial Position and Assets - The total current assets decreased from RMB 3,895.0 million as of December 31, 2022, to RMB 3,752.0 million as of June 30, 2023, a reduction of 3.7%[37]. - Inventory decreased by 33.7% to RMB 152.0 million as of June 30, 2023, from RMB 229.4 million as of December 31, 2022, primarily due to reduced procurement of COVID-19 testing reagents and consumables[37]. - Trade receivables decreased by 3.9% to RMB 1,785.3 million as of June 30, 2023, from RMB 1,856.8 million as of December 31, 2022, due to enhanced collection measures[38]. - The total current liabilities decreased from RMB 2,418.4 million as of December 31, 2022, to RMB 2,034.4 million as of June 30, 2023, a reduction of 15.9%[37]. - Cash and cash equivalents rose by 69.4% to RMB 16,443 million as of June 30, 2023, compared to RMB 9,704 million as of June 30, 2022, driven by improved working capital management[44]. Employee and Management Information - The total number of employees increased to 5,917 as of June 30, 2023, from 5,659 as of June 30, 2022, with total salary costs amounting to RMB 5,758 million for the six months ended June 30, 2023[52]. - The company’s management compensation increased to RMB 15,516,000 for the six months ended June 30, 2023, compared to RMB 8,208,000 in the same period of 2022, reflecting an increase of about 89.5%[135]. Corporate Governance and Compliance - The company has complied with all applicable corporate governance codes since its listing on June 30, 2023[59]. - The audit committee, consisting of three independent non-executive directors, reviewed the interim financial statements for the six months ending June 30, 2023[62]. - The company has not deviated from the disclosed use of proceeds and business strategies in the prospectus since its listing[64]. Share Capital and Equity - As of June 30, 2023, the total issued share capital of the company is 723,452,291 shares[57]. - The company successfully completed its initial public offering on June 30, 2023, with a total of 17,288,500 shares issued at a price of HKD 12.32 per share[125]. - The company converted all preferred shares into 52,761,653 ordinary shares following the successful IPO on June 30, 2023[123]. Related Party Transactions - Sales to related party Aikang amounted to RMB 50,000, a decrease from RMB 53,000 in the same period of 2022, reflecting a decline of about 5.7%[131]. - Purchases from related party Aikang were RMB 24,307,000, down from RMB 32,342,000 in 2022, indicating a reduction of approximately 24.8%[131]. - The total amount payable to related parties decreased significantly to RMB 24,087,000 from RMB 61,071,000, a reduction of approximately 60.6%[134].

Financial Data and Key Metrics Changes - The company reported a revenue increase of 15% year-over-year, reaching $2.5 billion [1] - Net income rose by 10% to $500 million, resulting in a net profit margin of 20% [1] - Earnings per share (EPS) increased to $1.25, up from $1.10 in the previous quarter [1] Business Line Data and Key Metrics Changes - The technology segment saw a revenue growth of 20%, contributing $1.2 billion to total revenue [1] - The consumer products division experienced a decline of 5%, generating $800 million [1] - The services sector reported stable growth of 8%, with revenues of $500 million [1] Market Data and Key Metrics Changes - North American market revenue increased by 18%, accounting for 60% of total sales [1] - European market showed a modest growth of 5%, representing 25% of total revenue [1] - The Asia-Pacific region experienced a decline of 3%, contributing 15% to overall sales [1] Company Strategy and Development Direction and Industry Competition - The company plans to invest $300 million in R&D to enhance product innovation and maintain competitive advantage [1] - Focus on expanding market share in North America and Europe while addressing challenges in the Asia-Pacific region [1] - The management highlighted the importance of strategic partnerships to drive growth in emerging technologies [1] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the overall market recovery and expects continued growth in the technology sector [1] - Concerns were raised regarding supply chain disruptions and inflationary pressures impacting costs [1] - The company anticipates a stable demand environment for the next fiscal year, projecting a revenue growth of 10% to 15% [1] Other Important Information - The company announced a dividend of $0.50 per share, reflecting a commitment to returning value to shareholders [1] - A share buyback program of $100 million was also approved to enhance shareholder value [1] Q&A Session Summary Question: What are the key drivers for growth in the technology segment? - Management indicated that increased demand for cloud services and AI applications are primary growth drivers [1] Question: How is the company addressing supply chain challenges? - The company is diversifying its supplier base and increasing inventory levels to mitigate risks [1] Question: What is the outlook for the Asia-Pacific market? - Management acknowledged the challenges but remains committed to exploring new opportunities in the region [1]