春末夏初，艾迪康控股(09860)的业务版图再度扩张。 据智通财经APP消息，5月6日，艾迪康控股官宣全资收购元德友勤、元德维康，总对价包括5000万元人 民币现金（分两期支付）及4%公司普通股（其中2%为激励条件达成后发放）。 据悉，元德友勤是国内血液病诊断领域的领先企业之一，元德维康作为其配套平台，深耕流式细胞检测 已有十余年。此次收购完成后，艾迪康控股将在血液检测赛道实现关键布局，进一步提升其在高端特检 领域的技术实力与市场竞争力。 特检业务布局持续完善，加速进军血检赛道 作为ICL行业的头部企业，艾迪康控股的一举一动始终备受市场的关注。近年来，公司加快在特检领域 的布局，自2019年至2024年的首个五年规划期间，重点聚焦感染、妇幼、血液、肿瘤四大产品线。2024 年，特检业务已成为公司业绩增长的核心引擎，全年营收同比增长超18%，增速位居行业前列。其中， 肿瘤检测业务表现尤为亮眼，实现47%的高速增长。从长期来看，特检业务收入的五年复合年增长率高 达33%，战略价值已成功得到验证。 从公司2024年报披露的最新五年规划来看，特检板块依然为公司布局的重点所在。未来五年，公司特检 板块将加速围绕医学价值 ...

元德友勤作为国内血液病诊断领域的标杆企业之一，自2017年成立以来发展迅猛，已构建起完善的血液肿瘤MICM精准诊断平台，多元化覆盖血液系统疾 病，在白血病、淋巴瘤、多发性骨髓瘤、移植、出凝血领域拥有专业的诊断服务体系。其实验室还获得ISO 15189、CAP、NCCL高通量测序室间质评等国内 外权威认证，具备良好的实验室规范化建设和管理能力。元德友勤每年平均提供检测服务超20万次，服务客户覆盖400多家三级医院，送检项目超300项。同 时，元德友勤汇聚了国内血液病领域顶尖专家资源，致力于推动前沿技术转化与落地，持续强化技术实力与服务能力。 元德维康成立于2014年，深耕流式细胞检测领域十余载，专注于抗血小板膜糖蛋白自身抗体检测试剂盒及流式荧光标记抗体检测试剂的研发与生产，拥有5 个万级和1个10万级GMP标准车间，致力于提供专业、前沿、标准化的合规血液病流式检测方案及相关试剂，包括第一类、第二类IVD试剂，覆盖白血病、 淋巴瘤、MDS/MPN免疫分型及MRD检测，同时也为用户提供部分非临床科研试剂。 智通财经APP获悉，5月6日，艾迪康控股(09860)正式签约对苏州元德友勤医学检验所有限公司(下称"元德友勤 ...

杭州艾迪康为集团ICL业务在中国的控股公司。透过合约安排，公司控制并持有杭州艾迪康100%的经济 利益，杭州艾迪康及其附属公司在中国经营ICL业务。 格隆汇5月6日丨艾迪康控股(09860.HK)公告，于2025年5月6日，公司、杭州艾迪康、卖方及目标公司 （元德维康及元德友勤）就收购目标公司全部股权订立投资协议。根据投资协议，(i)公司已有条件同意 向卖方甲收购于元德维康的全部股权，代价为191.0百万港元，其将以配发及发行最多2903万股代价股 份（相当于本公告日期公司已发行股本总额约4%及经代价股份扩大的公司已发行股本总额约3.85%）支 付；及(ii)杭州艾迪康已有条件同意向卖方乙收购于元德友勤的全部股权，现金代价为人民币5000万 元。 收购事项为一项战略投资，与集团的既定战略一致，即凭藉其在ICL行业的领导地位，并透过瞄准其他 医疗检测服务供应商及把握具重大发展潜力市场的增长机遇，扩大其服务网络。收购事项的主要理据是 有机会实现有意义的能力扩展及垂直整合。收购元德友勤（专门从事医学检验服务，拥有血液检测专业 知识）将使集团深化其专业知识并拓宽其在ICL市场高价值血液学检测的服务组合。这与集团现有的 ...

Business Growth and Revenue - In 2024, the company achieved over 8% growth in routine business, over 18% growth in special testing business, and a significant 62% growth in co-construction business[7]. - In 2024, the company's regular business revenue (excluding COVID-19) increased by 8.2% compared to the same period in 2023, driven by strong growth in specialty testing business, which grew over 18% year-on-year[24]. - The company achieved a 62% increase in revenue from collaborative business in 2024 compared to the same period in 2023, significantly broadening market coverage and enhancing competitiveness[24]. - Revenue from routine testing services, excluding COVID-19 related tests, increased by 8.2% from RMB 2,693.3 million in 2023 to RMB 2,914.1 million in 2024, reflecting the continued expansion of specialized testing services and a robust growth in sample volume[45]. - The company reported a significant increase in user data, with a year-over-year growth of 25% in active users[95]. - Revenue for the fiscal year reached $500 million, representing a 15% increase compared to the previous year[95]. - The company has set a future outlook with a revenue guidance of $600 million for the next fiscal year, indicating a growth target of 20%[95]. Financial Performance - In 2024, the company achieved a revenue of RMB 2,914,113 thousand, a decrease of 11.6% compared to RMB 3,297,828 thousand in 2023[19]. - The gross profit for 2024 was RMB 1,098,649 thousand, down 23.4% from RMB 1,434,107 thousand in 2023[21]. - The net profit for the year was RMB 62,563 thousand, a significant decline of 76.1% from RMB 262,322 thousand in 2023[21]. - The basic earnings per share for 2024 were RMB 0.07, down from RMB 0.34 in 2023[21]. - The gross margin decreased from 43.5% in 2023 to 37.7% in 2024, primarily due to reduced contributions from COVID-19 related testing and the inefficiencies of newly opened laboratories[47]. - Other income and gains for the year ending December 31, 2024, were RMB 49.3 million, down approximately 20.0% from RMB 61.6 million in 2023, mainly due to the absence of non-cash fair value gains related to put options[50]. - Research and development expenses for the year ending December 31, 2024, were RMB 120.0 million, a decrease of approximately 16.4% from RMB 143.5 million in 2023[53]. Strategic Initiatives and Investments - The company completed a five-year strategic plan for special testing capabilities, focusing on blood, oncology, and emerging fields like neuroimmunology and chronic diseases[8]. - The company plans to invest in key projects such as macro-genetic testing, tumor methylation early screening, and electron microscopy pathology biopsy, which align with existing technical capabilities[8]. - The company aims to enhance partnerships with regional medical institutions to promote industry development through shared laboratory resources and technology platforms[8]. - The company plans to pursue mergers and acquisitions to enhance its technical capabilities and competitive edge in specific testing fields[12]. - The company is investing $20 million in new technology development to improve operational efficiency[95]. Operational Efficiency and Technology - AI-assisted pathology reading technology has improved reading speed by 6-7 times compared to manual methods, with over 8 million cases assisted by AI[9]. - The company successfully launched a new generation Laboratory Information Management System (LIMS) in 20 key subsidiaries, with plans for full implementation across all subsidiaries by 2025[9]. - The company upgraded its laboratory management systems and implemented AI technology, with over 800,000 images analyzed, improving efficiency and accuracy in pathology interpretation[25]. - The company reduced reagent procurement costs by 10% and logistics costs by 6% in 2024 compared to 2023, optimizing key operational metrics[27]. - The company continues to invest in upgrading its laboratory information systems and data management capabilities, leveraging AI to optimize operations and improve service delivery[43]. Market Trends and Industry Outlook - The aging population and rising chronic disease rates are driving an increase in testing demand, with health awareness prompting early detection and preventive measures[34]. - The demand for ICL testing is expected to increase due to the promotion of a tiered diagnosis and treatment system, which enhances access to primary care and balances public healthcare resources[32]. - The Chinese government is investing heavily in healthcare infrastructure and expanding insurance coverage, which is expected to increase the outsourcing demand for clinical testing services[37]. - Regulatory policies are becoming stricter, promoting a compliant and sustainable development direction for the ICL industry, enhancing market transparency and competition[38]. - The outsourcing rate of testing in health examination centers is increasing due to rising customer demand for quality and cost-effective testing services[34]. Leadership and Governance - Yang Ling has been the chairperson and non-executive director since October 2018, leading Pearl Group Limited's investment in the company[83]. - The company has seen significant leadership changes, with new non-executive directors joining, including Zhou Mintao, who has extensive experience in the healthcare sector[88]. - The company is focusing on expanding its market presence and enhancing its product offerings through strategic leadership appointments and partnerships[91]. - The company has a strong board with members holding advanced degrees from prestigious institutions, including Harvard Business School and Ohio State University[84][91]. - The leadership team has a diverse background in various industries, including pharmaceuticals, biotechnology, and investment banking, which positions the company well for future challenges[90]. Shareholder and Financial Management - The total net proceeds from the global offering amounted to RMB 230.9 million, fully utilized by December 31, 2024[115]. - The company has established a remuneration committee to review the compensation of directors and senior management[171]. - The company has maintained at least 25% of its issued shares held by the public, complying with the minimum public float requirement[138]. - The company has not been involved in any legal proceedings that could significantly impact its business or financial performance during the reporting period[142]. - The company has not issued any debt securities during the reporting period[139]. Related Party Transactions - The procurement and equipment leasing framework agreement with Aikang Biotechnology has an annual cap of approximately RMB 110 million, with actual transactions during the reporting period amounting to RMB 1.4 million[178]. - Aikang Biotechnology is recognized as a related party, with 50% ownership held indirectly by Mr. Lin Jixun, a non-executive director of the group[177]. - Independent non-executive directors confirmed that the ongoing related party transactions are conducted on normal commercial terms and in the overall interest of the company and its shareholders[179]. - The exclusive business cooperation agreement grants Aikang exclusive and complete proprietary rights to all intellectual property developed during the performance of the agreement[183]. Risk Management - The company has identified several key risks, including competition, regulatory changes, and potential loss of customers, which could adversely affect its financial performance[145]. - The company has implemented measures to mitigate risks associated with contractual arrangements, ensuring effective business operations and compliance by registered shareholders[195]. - The company may face severe penalties or be forced to relinquish benefits obtained through contractual arrangements if deemed non-compliant with Chinese regulations[195].

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 ...

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 2,914,113, a decrease of 11.6% compared to RMB 3,297,828 in 2023[4] - Gross profit for the same period was RMB 1,098,649, down 23.4% from RMB 1,434,107 in 2023[4] - Net profit for the year was RMB 62,563, a significant decline of 76.1% from RMB 262,322 in 2023[4] - The gross profit for the year ending December 31, 2024, was RMB 1,098.6 million, a decrease of approximately 23.4% compared to RMB 1,434.1 million for the year ending December 31, 2023[35] - The gross margin decreased from 43.5% in 2023 to 37.7% in 2024, primarily due to reduced contributions from COVID-19 related testing and the impact of newly opened laboratories still in the upgrade phase[35] - Total comprehensive income for the year was RMB 51,251,000, a significant decrease from RMB 218,173,000 in the previous year, representing a decline of approximately 76.6%[69] - Basic earnings per share for ordinary shareholders of the parent company was RMB 0.07, down from RMB 0.34 in the previous year, indicating a decrease of approximately 79.4%[69] Business Growth and Strategy - Regular business achieved over 8% growth, while specialized testing business grew by over 18%, and co-construction business saw a remarkable 62% increase[5] - The company completed a five-year strategic plan focusing on enhancing testing capabilities in blood, oncology, and emerging fields like neuroimmunology and chronic diseases[6] - Digital transformation efforts included the successful launch of a new laboratory information management system (LIMS) across 20 subsidiaries, with plans for full implementation by 2025[7] - AI technology has been widely applied, improving pathology reading speed by 6-7 times and assisting in over 8 million cases[7] - The company plans to pursue mergers and acquisitions to strengthen its capabilities in specific testing areas and enhance competitive advantages[8] - A total of 300+ new testing items were added throughout the year, maintaining a leading position in the industry[8] - The company aims to continue investing in core businesses to enhance revenue and profit margins while adapting to market changes[9] Market and Industry Trends - The demand for ICL testing is expected to increase due to the promotion of a tiered diagnosis and treatment system, which enhances accessibility to primary care and balances public healthcare resources[21] - The aging population and the increase in chronic diseases are leading to a surge in testing demand, with a growing emphasis on early detection and preventive measures[22] - ICL operators benefit from economies of scale, allowing them to conduct large volumes of tests at lower costs, thus enhancing their competitive edge[23] - The Chinese government is investing heavily in healthcare infrastructure and expanding insurance coverage, which is expected to increase the outsourcing of laboratory testing services[21] - Regulatory measures introduced in 2023 aim to create a fair and transparent market environment for the ICL industry, promoting compliance and sustainable development[25] - The focus on precision medicine and the emergence of new technologies are significantly stimulating the growth of the ICL market in China[22] Operational Efficiency - The company upgraded its laboratory management systems, including LIMS and OMS, to improve operational efficiency and service quality[14] - AI technology has been applied to over 800,000 images, enhancing diagnostic efficiency and accuracy while optimizing laboratory workflows[14] - The company's cost of sales for the year ended December 31, 2024, was RMB 1,815.5 million, a decrease of approximately 2.6% from RMB 1,863.7 million for the year ended December 31, 2023, attributed to improved laboratory operational efficiency[34] - The implementation of the DRG/DIP 2.0 plan is expected to enhance the efficiency of medical insurance settlements, benefiting low-cost healthcare service providers like the company[26] Financial Position and Assets - The total current assets decreased from RMB 3,303.4 million as of December 31, 2023, to RMB 3,050.7 million as of December 31, 2024, while current liabilities increased from RMB 1,757.0 million to RMB 1,925.1 million[46] - The inventory as of December 31, 2024, was RMB 126.9 million, a decrease of approximately 28.1% from RMB 176.6 million as of December 31, 2023, due to reduced demand for COVID-19 related testing services[47] - The company's debt situation showed a net cash position of RMB 693.9 million as of December 31, 2024, down 11.5% from RMB 784.5 million as of December 31, 2023, due to increased borrowings for capital expenditures[56] - The current ratio decreased to 1.58 as of December 31, 2024, from 1.88 as of December 31, 2023, indicating a decline in liquidity[60] - The company's total liabilities increased to RMB 2,910,341,000 from RMB 2,724,948,000, marking an increase of approximately 6.8%[71] Research and Development - Research and development expenses for the year ending December 31, 2024, were RMB 120.0 million, a decrease of approximately 16.4% from RMB 143.5 million in 2023, attributed to reduced employee costs and lower usage of R&D related reagents[40] - The group reported a pre-tax profit of RMB 120,037 thousand for R&D costs in 2024, compared to RMB 143,522 thousand in 2023, reflecting a decrease of approximately 16.4%[93] Shareholder and Capital Management - The company has adopted three share plans, including the 2019 Incentive Plan and the 2024 Incentive Plan, to incentivize employees[123] - The total issued and paid-up share capital as of December 31, 2024, is RMB 97,000,000, with 727,260,291 ordinary shares outstanding[116] - The company repurchased a total of 1,611,500 shares in June 2024 at an average price of HKD 10.12, totaling HKD 15.4 million[122] - The group did not declare or pay any dividends for the year ending December 31, 2024[101] Compliance and Governance - The audit committee, consisting of three independent non-executive directors, reviewed the consolidated financial statements for the year ending December 31, 2024, confirming compliance with applicable accounting standards[127] - The group has adopted revised International Financial Reporting Standards (IFRS) accounting standards, including IFRS 16, which relates to lease liabilities from sale and leaseback transactions, but has no impact on the group's financial position or performance as there were no sale and leaseback transactions[78]

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 ...

Financial Performance - For the six months ended June 30, 2024, the company's revenue was RMB 1,465.7 million, a decrease of 10.9% compared to RMB 1,644.1 million for the same period in 2023[2]. - Gross profit for the same period was RMB 559.7 million, down 21.9% from RMB 717.0 million in the previous year[2]. - The company's net profit attributable to shareholders was RMB 101.6 million, compared to RMB 111.8 million in the prior year, reflecting a decline of 9.8%[2]. - Basic earnings per share for the six months ended June 30, 2024, was RMB 0.14, down from RMB 0.17 in the same period of 2023[2]. - Revenue for the six months ended June 30, 2024, was RMB 1,465.7 million, a decrease of approximately 10.9% compared to RMB 1,644.1 million for the same period in 2023, primarily due to reduced demand for COVID-19 related services[15]. - The net profit for the six months ended June 30, 2024, was RMB 103.5 million, down from RMB 120.3 million for the same period in 2023[40]. - Total comprehensive income for the six months ended June 30, 2024, was RMB 98,381,000, an increase of 58.8% compared to RMB 61,933,000 for the same period in 2023[41]. - Profit attributable to equity holders of the parent company for the same period was RMB 96,485,000, up from RMB 53,482,000, representing an increase of 80.4%[41]. Operational Efficiency - The company's core business (excluding COVID-19 related services) achieved over 10% revenue growth, with specialty testing business growing over 30% year-on-year[3]. - The company successfully launched a new generation LIMS system and upgraded several key operational systems to enhance efficiency and service quality[4]. - The company reduced reagent procurement costs by 8% and reagent loss rates by 12% compared to the same period in 2023, optimizing key operational metrics[4]. - Collaborative business initiatives grew over 70% year-on-year, significantly expanding market coverage and improving resource utilization[3]. - The company has adopted AI technology, with over 5 million images processed, enhancing diagnostic speed and accuracy[4]. - The company remains committed to sustainable development and improving operational efficiency to maintain competitive advantages in the market[4]. Market Trends and Demand - The Chinese government has implemented a series of medical reforms to reshape the ICL industry and support private sector growth, including the "14th Five-Year Plan" announced in May 2022, which aims to promote the integration of biotechnology and information technology[6]. - The demand for ICL testing is expected to increase due to the government's promotion of a hierarchical medical system, which includes hospital alliances and standardized referral pathways[7]. - The aging population in China is driving a surge in chronic disease prevalence, leading to increased testing demand and higher outsourcing rates for health check centers[8]. - Hospitals are increasingly outsourcing clinical testing to ICLs due to cost control pressures from medical reforms and regulations like the DRG grouping and payment standards[9]. - ICLs benefit from a broad network that allows them to connect with hospitals across different regions, enabling them to conduct large-scale tests at lower costs[10]. - Advances in biopharmaceuticals and the integration of big data and artificial intelligence are enhancing diagnostic capabilities and supporting the development of targeted treatment plans[11]. - The ICL industry is positioned to lead in healthcare digitalization, with ongoing investments in laboratory information systems and data management capabilities[11]. - ICLs are establishing strategic partnerships with top-tier hospitals to enhance their service offerings and improve the distribution of medical resources in underserved areas[12]. - The shift towards outsourcing clinical testing is expected to continue, driven by the need for cost-effective and high-quality testing services[9]. - The focus on improving diagnostic and treatment capabilities at the grassroots level is promoting a more balanced distribution of medical resources across regions[12]. Financial Position and Assets - As of June 30, 2024, trade receivables and bills amounted to RMB 1,676.8 million, an increase of approximately 10.6% from RMB 1,515.4 million as of December 31, 2023[27]. - As of June 30, 2024, prepaid items, deposits, and other receivables were RMB 239.3 million, up about 19.0% from RMB 201.1 million as of December 31, 2023[27]. - As of June 30, 2024, trade payables and bills were RMB 704.8 million, a decrease of approximately 5.0% from RMB 742.1 million as of December 31, 2023[27]. - As of June 30, 2024, cash and cash equivalents were RMB 768.0 million, a decrease of about 20.0% from RMB 959.4 million as of December 31, 2023[30]. - As of June 30, 2024, net cash position decreased by approximately 35.9% to RMB 502.6 million from RMB 784.5 million as of December 31, 2023[31]. - Non-current assets totaled RMB 1,513,138,000 as of June 30, 2024, compared to RMB 1,250,150,000 as of December 31, 2023, reflecting a growth of 20.9%[42]. - Current assets decreased to RMB 3,146,526,000 from RMB 3,303,388,000, a decline of 4.8%[42]. - Total liabilities increased to RMB 1,577,455,000 as of June 30, 2024, from RMB 1,757,018,000, indicating a decrease of 10.2%[43]. - Net assets amounted to RMB 1,904,724,000 as of June 30, 2024, compared to RMB 1,828,590,000 as of December 31, 2023, an increase of 4.2%[43]. Cost Management - Cost of sales for the same period was RMB 906.0 million, a decrease of approximately 2.3% from RMB 927.1 million, attributed to a decline in costs associated with COVID-19 testing[16]. - Selling and marketing expenses decreased by approximately 13.6% to RMB 202.0 million from RMB 233.7 million, due to cost control measures implemented in the first half of 2024[17]. - Administrative expenses were RMB 107.5 million, a decrease of approximately 21.3% from RMB 136.6 million, primarily due to organizational restructuring and reduced employee costs[18]. - Research and development expenses decreased by approximately 15.0% to RMB 58.7 million from RMB 69.1 million, due to a reduction in development projects[19]. - Other expenses decreased by approximately 24.9% to RMB 50.0 million from RMB 66.6 million, mainly due to a reduction in expected credit loss provisions[20]. - Other income and gains decreased by approximately 42.2% to RMB 19.7 million from RMB 34.0 million, primarily due to a decrease in non-cash fair value gains related to the acquisition of subsidiaries[21]. - Financial costs decreased by approximately 40.2% to RMB 27.4 million from RMB 45.9 million, due to refinancing of offshore bank borrowings at lower interest rates[22]. Shareholder Information - The company did not declare or pay any dividends for the six months ended June 30, 2024[63]. - The weighted average number of ordinary shares issued for the calculation of basic earnings per share increased to 727,290,644 shares in 2024 from 653,787,020 shares in 2023[63]. - The company repurchased 1,611,500 shares at a total cost of approximately RMB 14,033,000 during the six months ending June 30, 2024[82]. - The company has announced a plan to repurchase up to 36,367,739 shares, which represents 5% of the total issued shares as of May 30, 2024[82]. - The total issued share capital remained unchanged at 727,354,791 shares as of June 30, 2024, with a capital of RMB 97,000[81]. Compliance and Governance - The company has maintained its accounting policies consistent with those used in the annual financial statements for the year ended December 31, 2023[46]. - The audit committee consists of three independent non-executive directors and has reviewed the interim financial information[88]. - The independent auditor, Ernst & Young, has reviewed the interim financial data but did not provide a certification[89]. - The company maintained compliance with corporate governance codes and standards throughout the reporting period[83][84]. - No significant events requiring disclosure have occurred after June 30, 2024, up to the date of this announcement[92].

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