Revenue and Sales Performance - For the three months ended March 31, 2021, the revenue from the sales of IVD reagents and auxiliary reproductive supplies and equipment increased by approximately 127.9% compared to the same period in the previous year[19]. - The Group's revenue increased by approximately RMB2.8 million, or approximately 137.7%, to approximately RMB4.9 million during the Reporting Period compared to approximately RMB2.1 million in the Corresponding Period[28]. - Sales of male fertility IVD reagents accounted for approximately 80.7% of total revenue, generating approximately RMB3.9 million, a 157.0% increase from approximately RMB1.5 million in the Corresponding Period[33]. - The Group's revenue for the three months ended March 31, 2021, was RMB 4,888,000, representing an increase of 137% compared to RMB 2,056,000 for the same period in 2020[150]. - Revenue from distributors was RMB 2,736,000, compared to RMB 1,186,000 in 2020, reflecting a 130% increase[172]. - Major customer A contributed RMB 596,000 to total revenue, which is a 114% increase from RMB 279,000 in the previous year[176]. Profitability and Loss - The Group recorded a gross profit of approximately RMB3.5 million, representing a significant increase of approximately RMB2.0 million, or approximately 130.7%, from approximately RMB1.5 million during the Corresponding Period[36]. - The gross profit margin slightly decreased from 73.8% in the Corresponding Period to approximately 71.6% during the Reporting Period, mainly due to lower margins from healthcare products and supplements[37]. - The Group's loss for the period attributable to owners was approximately RMB1.1 million, a decrease from approximately RMB2.8 million in the Corresponding Period[55]. - Basic loss per share during the Reporting Period was RMB0.29 cents, compared to RMB0.69 cents during the Corresponding Period[56]. - Loss before tax decreased to RMB 1,113,000, a 60% improvement compared to a loss of RMB 2,753,000 in the previous year[151]. - Loss for the period attributable to owners of the Company was RMB 1,149,000, down from RMB 2,753,000 in the same period last year[151]. - The total comprehensive expense for the period ended 31 March 2021 was RMB 1,178,000, which includes an exchange difference on consolidation of RMB (29,000)[152]. Expenses and Costs - Selling and distribution expenses increased by approximately RMB579,000 or approximately 40.5%, from approximately RMB1.4 million to approximately RMB2.0 million during the Reporting Period[48]. - The Group's administrative expenses for the period were RMB 2,155,000, slightly down from RMB 2,255,000 in the previous year[151]. - Staff costs totaled RMB 2,622,000, up from RMB 2,320,000, representing a 13% increase[182]. - The company incurred finance costs of RMB 26,000 for lease liabilities, an increase from RMB 15,000 in 2020[182]. Corporate Governance and Compliance - The Company has complied with the Corporate Governance Code during the reporting period, ensuring high corporate governance standards[134]. - The Board conducted reviews of the internal control system to ensure its effectiveness and adequacy[135]. - The Company has adopted a code of conduct for securities transactions by Directors, ensuring compliance with the required standards[140]. - The internal control systems have been reviewed to ensure effectiveness and compliance with corporate governance codes[144]. - The Company has not noted any incidents of non-compliance with the required standards by relevant employees during the reporting period[141]. - The Company is committed to safeguarding shareholder interests and enhancing corporate value through good governance practices[133]. Share Capital and Ownership - The company's issued share capital as of March 31, 2021, was HK$4 million, with 400,000,000 shares issued at HK$0.01 each[74]. - As of March 31, 2021, the Group had 23,504,000 share options outstanding, with 2,000,000 options forfeited during the period[70]. - As of March 31, 2021, Mr. Zhang Shuguang held 240,000,000 ordinary shares and 4,000,000 share options, representing a total interest of 61.0%[108]. - The total number of shares issued as of March 31, 2021, was 400,000,000[109]. - Mr. Zhang Shuguang and Mr. Chang Yim Yang have been acting in concert regarding their interests in the company since November 16, 2017[110]. - As of March 31, 2021, Crystal Grant and Ever Charming each hold 240,000,000 ordinary shares and 4,000,000 share options, representing a total interest of 244,000,000 shares, which is 61.0% of the shareholding[119]. - Gallizul Global Investments holds 30,000,000 ordinary shares, accounting for 7.5% of the total shareholding[119]. Financial Position and Liquidity - The Group maintained a prudent treasury policy to manage cash balances and ensure strong liquidity for future growth opportunities[77]. - The functional currencies of the Group's operations were mostly denominated in RMB, with no significant foreign exchange risk except for bank balances in HK$, US$, and CAD$[76]. - The Group did not have any significant investments held as of March 31, 2021[85]. - The Group did not have any significant contingent liabilities as of March 31, 2021[88]. - As of March 31, 2021, the net value of the group's lease liabilities secured by vehicles was approximately RMB 407,000, compared to RMB 434,000 as of December 31, 2020[92]. - The company’s total equity amounted to RMB 60,681,000, a decrease from RMB 67,924,000 as of March 31, 2020[152]. Research and Development - The Group plans to complete medical device registration for new research projects to be launched in late 2021, focusing on rapid Point-Of-Care diagnostic testing[26]. - The Group intends to further invest in the research and development of POCT, including purchasing raw materials and setting up a new production line[26]. Taxation - The company is entitled to a concessional tax rate of 15% due to its status as a "New and High Technology Enterprise" in China[185]. - The latest approval for the tax benefit was obtained in December 2020, valid until December 31, 2023[185]. Other Information - The company did not recommend the payment of any dividend for the three months ended March 31, 2021, the same as for the previous year[97]. - No significant events affecting the company occurred from March 31, 2021, to the date of the report[98]. - The company operates primarily in the research and development, manufacturing, and sales of biological reagents and auxiliary reproductive supplies and equipment[154]. - The unaudited condensed consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards (HKFRSs) and comply with the applicable disclosure requirements of the GEM Listing Rules[158]. - The company has not reported any significant changes to its accounting policies following the adoption of new and revised HKFRSs for the financial period beginning on 1 January 2021[160].
华康生物医学(08622) - 2021 Q1 - 季度财报