Revenue and Sales Performance - For the nine months ended September 30, 2021, the revenue from the sales of biological reagents and auxiliary reproductive supplies and equipment increased by approximately 18.6% compared to the corresponding period in 2020[19]. - The Group's revenue increased by approximately RMB4.5 million, or approximately 31.7%, from approximately RMB14.1 million in the Corresponding Period to approximately RMB18.6 million in the Reporting Period[34]. - Sales of male fertility IVD reagents accounted for approximately 77.4% of total revenue, generating approximately RMB16.7 million, an increase of approximately RMB2.6 million or 18.6% from the Corresponding Period[35]. - Revenue from healthcare products and supplements, a new segment, was approximately RMB1.8 million during the Reporting Period, with no such business in the Corresponding Period[39]. - Total revenue for the nine months ended September 30, 2021, was RMB 18,569,000, representing a 32% increase from RMB 14,099,000 in the same period of 2020[171]. - Revenue from biological reagents for the nine months ended September 30, 2021, was RMB 15,739,000, up 20% from RMB 13,145,000 in 2020[171]. - Revenue from distributors decreased to RMB 9,051,000 for the nine months ended September 30, 2021, from RMB 7,518,000 in 2020, indicating a 20% increase[173]. - Non-distributor revenue increased to RMB 9,518,000 for the nine months ended September 30, 2021, up from RMB 6,581,000 in 2020, reflecting a 45% growth[173]. - Revenue from external customers in the PRC was RMB 16,726,000 for the nine months ended September 30, 2021, up from RMB 14,099,000 in 2020, representing a growth of 18.5%[184]. Profitability and Expenses - The Group recorded a gross profit of approximately RMB11.8 million, representing an increase of approximately RMB1.9 million or 19.8% from approximately RMB9.9 million in the Corresponding Period[42]. - The gross profit margin decreased from approximately 70.0% in the Corresponding Period to approximately 63.6% in the Reporting Period, mainly due to lower margins in the healthcare products segment[43]. - Selling and distribution expenses increased by approximately RMB758,000 or 16.5%, from approximately RMB4.6 million to approximately RMB5.4 million, attributed to increased sales and marketing activities[52]. - The loss for the period attributable to owners of the Company was approximately RMB2.3 million, a decrease from approximately RMB6.7 million in the Corresponding Period[55]. - The total comprehensive expense attributable to the owners of the Company for the nine months ended September 30, 2021, was RMB 2,325,000, significantly reduced from RMB 6,635,000 in the same period of 2020[157]. - The Company reported a loss for the period attributable to the owners of RMB 2,344,000 for the nine months ended September 30, 2021, compared to a loss of RMB 6,677,000 in the same period of 2020[156]. Research and Development - The management discussion indicates a commitment to research and development in the field of biological reagents and reproductive health[17]. - The Group plans to launch semen biochemical immunoassay equipment and two improved male fertility IVD reagents in late 2021, with further investment in research and development of Point-Of-Care testing[29]. - Research and development expenses increased slightly from approximately RMB 1.5 million in the previous year to approximately RMB 1.7 million during the reporting period[58]. - Research and development expenses for the nine months ended September 30, 2021, were RMB 1,669,000, compared to RMB 1,508,000 in the same period of 2020, reflecting a 10.7% increase[156]. Corporate Governance and Compliance - The Company has adopted a code of conduct for securities transactions by Directors, confirming full compliance during the Relevant Period[145]. - The Board is committed to high corporate governance standards, enhancing transparency and accountability[139]. - The Company has complied with the Corporate Governance Code during the Reporting Period[140]. - The Audit Committee consists of three independent non-executive Directors, ensuring oversight of financial reporting and internal controls[147]. - There were no incidents of non-compliance with the Required Standard by relevant employees noted by the Company[146]. Share Capital and Ownership - The shares of the Company were listed on GEM of the Stock Exchange on December 13, 2018, with a share offer of 100,000,000 new shares at HK$0.5 per share[17]. - The company's issued share capital was HK$4 million, with 400,000,000 issued shares of HK$0.01 each as of September 30, 2021[80]. - The total number of share options outstanding as of September 30, 2021, was 23,504,000, after accounting for 2,000,000 options that were forfeited during the period[73]. - Mr. Zhang Shuguang and Mr. Chang Yim Yang collectively hold 240,000,000 shares and 4,000,000 share options, representing 61.0% of the total shareholding[125]. - The aggregate interest of Mr. Zhang Shuguang and Mr. Chang Yim Yang is deemed to be 244,000,000 shares when including share options[125]. Taxation and Financial Position - The PRC enterprise income tax rate applicable to the Group's subsidiaries remained at 15% during the reporting period[63]. - The current tax expense for the nine months ended September 30, 2021, was RMB 283,000, compared to RMB 282,000 for the same period in 2020, indicating stability in tax obligations[196]. - The Company’s PRC subsidiary, Shenzhen Huakang, is entitled to a concessional tax rate of 15% due to its recognition as a "New and High Technology Enterprise," with the latest approval valid until December 31, 2023[198]. - The Company’s total equity as of September 30, 2021, was RMB 59,534,000, a decrease from RMB 66,710,000 as of September 30, 2020[157]. Operational Highlights - The Group's product portfolio includes 27 biological reagents, with 24 specifically for male fertility IVD, 2 for parasite antibody detection, and 1 for Epstein-Barr virus antibody detection[18]. - The Group's factory in the PRC experienced over five weeks of sales and production halt during the corresponding period in 2020 due to the COVID-19 epidemic, which impacted revenue figures[19]. - The Group's focus is on the PRC male fertility IVD reagent market, indicating a strategic emphasis on this segment[18]. - The Group's subsidiary in the PRC is responsible for the IVD reagents business, highlighting the operational structure[19]. - The Group has launched 12 healthcare products under the "Nutronic" brand and has obtained 24 natural health product licenses in Canada[27]. - A new subsidiary, Nutronic (Guangzhou) Health Foods Limited, was established to enhance local sales and distribution in China[33].
华康生物医学(08622) - 2021 Q3 - 季度财报