华控康泰(01312) - 2025 - 中期业绩

Announcement Overview Unaudited Interim Results Announcement Huakong Kangtai Group Co., Ltd. announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025, reviewed by the audit committee and auditors - Company name: Huakong Kangtai Group Co., Ltd.[3] - Reporting period: Six months ended June 30, 2025[2][3] - Audit status: Unaudited, but reviewed by the company's audit committee and auditors[3] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the company shifted from a profit to a significant loss year-on-year, driven by decreased revenue, increased cost of sales and services, and substantial increases in other gains and losses and net impairment losses Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 452,723 | 458,517 | | Cost of sales and services | (198,102) | (181,371) | | Gross profit | 254,621 | 277,146 | | Other gains and losses | (187,021) | (19,044) | | Net impairment losses recognized under expected credit loss model | (159,035) | (25,466) | | (Loss) Profit before tax | (339,251) | 3,672 | | Loss for the period | (321,425) | (4,532) | | Loss attributable to owners of the Company | (282,484) | 4,745 | | Basic (loss) earnings per share | (5.06) HK cents | 0.09 HK cents | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets and equity decreased from December 31, 2024, with significant reductions in non-current assets like goodwill and intangible assets, and a notable decline in net current assets Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Non-current assets | 730,458 | 1,030,423 | | Goodwill | 164,967 | 253,303 | | Intangible assets | 95,106 | 222,546 | | Current assets | 422,582 | 557,009 | | Current liabilities | 415,603 | 442,312 | | Net current assets | 6,979 | 114,697 | | Total equity | 620,918 | 961,536 | Notes to the Condensed Consolidated Financial Statements Auditor's Review The Group's interim condensed consolidated financial statements for the six months ended June 30, 2025, have been reviewed by BDO Limited, Hong Kong, in accordance with Hong Kong Standard on Review Engagements 2410 - Reviewing firm: BDO Limited, Hong Kong[9] - Review standard: Hong Kong Standard on Review Engagements 2410[9] Basis of Preparation These interim condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the disclosure requirements of the Listing Rules, and should be read in conjunction with the 2024 annual report - Preparation standards: Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the Listing Rules[10] - Reading recommendation: Should be read in conjunction with the 2024 annual report[10] Changes in Accounting Policies The interim condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value; new HKFRS amendments were first applied this period with no significant impact on financial position or performance - Preparation basis: Historical cost basis, with some financial instruments measured at fair value[11] - New standards applied: First-time application of amendments to Hong Kong Financial Reporting Standards, including HKAS 21 and HKFRS 1 "Lack of Exchangeability"[12] - Impact: No significant impact on the financial position and performance for the current and prior periods[12] Revenue and Segment Information The Group's total revenue slightly decreased year-on-year, primarily comprising pharmaceutical and fitness businesses, with stable pharmaceutical revenue and reduced fitness revenue, while mainland China remains the primary regional market Revenue by Major Product or Service Line (For the six months ended June 30) | Product/Service Line | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Manufacturing and sales of pharmaceutical products | 344,769 | 345,390 | | Private training courses | 31,852 | 35,295 | | Membership packages | 59,523 | 59,715 | | Franchise fee income | 16,579 | 18,117 | | Total Revenue | 452,723 | 458,517 | Revenue by Geographical Market (For the six months ended June 30) | Geographical Market | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Mainland China | 336,040 | 330,625 | | Singapore | 91,375 | 95,010 | | Taiwan | 16,579 | 18,117 | | Others | 8,729 | 14,765 | | Total Revenue | 452,723 | 458,517 | Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (HKD thousands) | 2024 Revenue (HKD thousands) | 2025 Results (HKD thousands) | 2024 Results (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Pharmaceutical Business | 344,769 | 345,390 | 20,420 | 60,478 | | Fitness Business | 107,954 | 113,127 | (338,711) | (38,544) | | Total | 452,723 | 458,517 | (318,291) | 21,934 | - Pharmaceutical Business: Primarily engaged in the manufacturing and sales of pharmaceutical products, including chemical drugs, active pharmaceutical ingredients (APIs), and API intermediates[15] - Fitness Business: Primarily engaged in operating fitness centers, providing fitness and health consulting services, and franchising operations[15] Other Gains and Losses Other gains and losses recorded a significant loss this period, primarily due to substantial increases in impairment losses on intangible assets and goodwill, particularly goodwill impairment in the fitness segment Other Gains and Losses (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Net exchange gains (losses) | 25,720 | (5,580) | | Impairment loss on intangible assets | (123,873) | (13,559) | | Impairment loss on goodwill | (88,417) | — | | Total | (187,021) | (19,044) | - Goodwill impairment in fitness segment: An impairment assessment was conducted on the goodwill of the fitness business cash-generating unit due to operating losses, operational difficulties, and tight financial resources of franchisees, resulting in an impairment loss of approximately HKD 88,417 thousands[16] Net Impairment Losses under Expected Credit Loss Model Net impairment losses recognized under the expected credit loss model significantly increased this period, primarily due to impairment losses on amounts due from an associate Net Impairment Losses Recognized under Expected Credit Loss Model (For the six months ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade receivables | 1,916 | (2,862) | | Amounts due from an associate | (161,282) | (22,565) | | Total | (159,035) | (25,466) | - Main reason: Credit losses have occurred on amounts due from an associate, assessed based on the lifetime expected credit loss model[17] Taxation Taxation for the period shifted from an expense last year to a credit, primarily due to an increase in deferred tax credits Taxation (Credit) Expense (For the six months ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Current tax | 3,904 | 12,921 | | Deferred tax | (21,730) | (6,105) | | Total | (17,826) | 8,204 | Loss for the Period Loss for the period was primarily impacted by amortization and depreciation of intangible assets, inventory costs, sales and promotion expenses, and impairment losses on intangible assets and goodwill Loss for the Period is Arrived at After Charging (Crediting) the Following (For the six months ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Total amortization and depreciation | 47,936 | 49,685 | | Cost of inventories recognized as expense | 101,254 | 76,631 | | Sales and promotion expenses | 201,694 | 192,789 | | Impairment loss on intangible assets | 123,873 | 13,559 | | Impairment loss on goodwill | 88,417 | — | Earnings/(Loss) per Share For the six months ended June 30, 2025, the company reported a basic loss per share of 5.06 HK cents, compared to earnings per share of 0.09 HK cents in the prior period, primarily due to a significant increase in loss attributable to owners of the Company Calculation of Basic (Loss) Earnings per Share (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | (Loss) Profit attributable to owners of the Company | (282,484) | 4,745 | | Weighted average number of ordinary shares | 5,578,713,777 | 5,578,713,777 | | Basic (Loss) Earnings per Share | (5.06) HK cents | 0.09 HK cents | - No diluted earnings per share: Diluted earnings per share are not presented as there were no outstanding potential ordinary shares for the current or prior periods[21] Dividends The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, and no dividends were paid, declared, or proposed during the period - Interim dividend: Not recommended (2024: Nil)[22] - Dividends for the period: None paid, declared, or proposed[22] Property, Plant and Equipment / Intangible Assets / Right-of-use Assets Acquisitions of property, plant and equipment increased this period, intangible assets were fully impaired due to operational difficulties in Taiwan's franchise business, and a portion of right-of-use assets was derecognized due to a modification of a Singapore fitness center lease agreement - Property, plant and equipment: Acquisitions of approximately HKD 13,196 thousands this period (2024: approximately HKD 9,339 thousands)[23] - Intangible asset impairment: Intangible assets related to the Taiwan franchise business were fully impaired by approximately HKD 123,873 thousands due to operational difficulties, tight financial resources, and insufficient projected franchise fee income (2024: approximately HKD 13,559 thousands)[24][25] - Right-of-use assets: Approximately HKD 20,656 thousands derecognized due to modification of the Singapore fitness center property lease agreement[26] Trade Receivables As of June 30, 2025, total trade receivables slightly increased, primarily concentrated in the 0-90 day aging category Aging Analysis of Trade Receivables (As of June 30) | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | 0 to 90 days | 88,728 | 74,837 | | 91 to 180 days | 17,610 | 29,530 | | 181 to 365 days | 2,387 | 3,150 | | Over one year | 439 | 1,193 | | Total | 109,164 | 108,710 | - Credit period: Trade customers have credit periods ranging from 30 to 180 days, while fitness business customers settle via credit card[27] Trade Payables As of June 30, 2025, total trade payables slightly decreased, primarily concentrated in the 0-90 day aging category Aging Analysis of Trade Payables (As of June 30) | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | 0 to 90 days | 4,808 | 4,258 | | 91 to 180 days | 7 | 16 | | 181 to 365 days | — | 136 | | Over one year | 1,658 | 2,249 | | Total | 6,473 | 6,659 | Contingent Liabilities The Group is involved in two legal proceedings (2019 and 2021 legal proceedings) related to the acquisition of True Cayman equity and profit guarantee arrangements; management assesses a low probability of significant economic outflow from these proceedings - 2019 legal proceedings: Involve the acquisition of 51% equity in True Cayman and a sale and purchase agreement; the Group has enforced its rights under the share charge agreement and filed counterclaims, with no substantial progress and no trial date set[32] - 2021 legal proceedings: Involve legal action by Fester Global against Active Gains and Mr. PJW for breach of the sale and purchase agreement and shareholders' agreement, with no substantial progress and no trial date set[30][32] - Management assessment: The likelihood of any significant economic outflow due to the aforementioned legal proceedings is low[30][32] Events After the Reporting Period Subsequent to the reporting period, the Group renewed a property lease agreement for a Singapore fitness center and entered into a construction contract with an associate for a Beijing R&D complex project, both constituting discloseable transactions - Singapore fitness center lease renewal: True Fitness Pte. Ltd. renewed a two-year lease agreement with Overseas Movie (Private) Limited, effective August 5, 2025, with an estimated recognition of right-of-use assets of approximately HKD 16,059 thousands[33] - Beijing R&D complex project: Tongfang Pharmaceutical Group Co., Ltd. signed a construction contract with Beijing Tsinghua Chuangchuang Engineering Construction Co., Ltd., valued at approximately RMB 33,672 thousands, for a new R&D complex; this is a discloseable and connected transaction requiring independent shareholders' approval[33][34] - Management's preliminary assessment: Directly attributable asset costs will be capitalized as additions to property, plant and equipment[35] Management Discussion and Analysis Business Overview The Group primarily engages in the manufacturing and sales of pharmaceutical products in China, as well as operating fitness centers and providing fitness and health consulting services, including franchising - Principal businesses: (i) Manufacturing and sales of pharmaceutical products in China (chemical drugs, APIs, API intermediates); (ii) Operating fitness centers, providing fitness and health consulting services, and operating franchising business to generate franchise fee income[37] Financial Results For the six months ended June 30, 2025, the Group's revenue and gross profit both decreased, and net loss significantly increased, primarily due to substantial impairment losses from underperforming fitness franchise operations Key Financial Results (For the six months ended June 30) | Indicator | 2025 (HKD millions) | 2024 (HKD millions) | | :--- | :--- | :--- | | Revenue | 452.7 | 458.5 | | Gross profit | 254.6 | 277.1 | | Net loss | 321.4 | 4.5 | | Basic loss per share | 5.06 HK cents | 0.09 HK cents (profit) | - Main reasons for loss: Changes in fitness business franchise performance, uncertain economic outlook, intensified competition, and operational difficulties and tight funding for the Taiwan associate[39] - Major impairment losses: Expected credit losses of approximately HKD 159.0 millions, impairment loss on intangible assets of approximately HKD 123.9 millions, and goodwill impairment loss on fitness business of approximately HKD 88.4 millions[39] Business Review Pharmaceutical business revenue and gross profit slightly decreased due to intensified market competition but still recorded gains; fitness business revenue declined and incurred significant losses, primarily due to slower-than-expected franchise recovery and substantial impairment losses Pharmaceutical Business Pharmaceutical business revenue and gross profit slightly decreased due to intensified market competition and product price adjustments, but still recorded gains, with increased marketing investment to maintain market share Pharmaceutical Business Financial Performance (For the six months ended June 30) | Indicator | 2025 (HKD millions) | 2024 (HKD millions) | | :--- | :--- | :--- | | Revenue | 344.8 | 345.4 | | Gross profit | 238.8 | 264.4 | | Segment results | 20.4 (gain) | 60.5 (gain) | - Reasons for decline: Intensified market competition negatively impacted individual product prices, while increased marketing investment led to higher distribution and selling expenses[40] Tongfang Pharmaceutical Group Co., Ltd. Tongfang Pharmaceutical primarily engages in the production and sales of chemical generic drugs, with both revenue and gross profit declining in the first half due to intensified market competition - Principal business: Production and sales of chemical generic drugs, with key products being prescription drugs (local anesthetics and gynecological drugs)[41] Tongfang Pharmaceutical Financial Performance (For the six months ended June 30) | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | | :--- | :--- | :--- | | Revenue | 276.8 | 278.7 | | Gross profit | 223.5 | 235.9 | - Future strategy: Improve marketing efficiency and increase product R&D efforts[41] Chongqing Kangle Pharmaceutical Co., Ltd. Chongqing Kangle primarily engages in the R&D, production, and sales of APIs and API intermediates; first-half revenue grew due to increased overseas customer demand, but gross profit declined due to fluctuating market prices - Principal business: R&D, production, and sales of APIs and API intermediates[42] Chongqing Kangle Financial Performance (For the six months ended June 30) | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | | :--- | :--- | :--- | | Revenue | 44.9 | 40.2 | | Gross profit | 4.9 | 10.2 | - Reason for revenue growth: Increased demand from overseas customers for one of its core products, driving higher sales volumes[42] - Reason for gross profit decline: Fluctuations in market prices of products sold[42] Fitness Business Fitness business revenue decreased and incurred significant losses, primarily due to slower-than-expected business recovery, especially operational difficulties and tight funding faced by Taiwan franchisees, leading to substantial impairment losses Fitness Business Financial Performance (For the six months ended June 30) | Indicator | 2025 (HKD millions) | 2024 (HKD millions) | | :--- | :--- | :--- | | Revenue | 108.0 | 113.1 | | Of which: Franchise fee income | 16.6 | 18.1 | | Segment loss | 338.7 | 38.5 | - Reason for revenue decrease: Slower-than-expected recovery of the fitness business, including Taiwan franchise operations[43] - Reason for significant loss increase: Changes in franchise business performance, operational difficulties, and tight funding faced by Taiwan franchisees, leading to substantial impairment losses[43] Financial Review The Group's liquidity primarily stems from cash generated from operations and bank borrowings; cash reserves slightly decreased at period-end, while the gearing ratio increased, with financial policies aimed at risk reduction and avoiding speculative derivative financial transactions Liquidity and Funding The Group's capital expenditures, daily operations, and investments are primarily funded by cash generated from operations and bank borrowings; cash and cash equivalents slightly decreased at period-end - Sources of funding: Cash generated from operations and bank borrowings from principal bankers[44] Cash and Cash Equivalents (As of June 30) | Indicator | June 30, 2025 (HKD millions) | December 31, 2024 (HKD millions) | | :--- | :--- | :--- | | Bank balances and cash reserves | 78.3 | 80.6 | Bank Borrowings The Group's outstanding borrowings repayable within one year decreased, primarily denominated in RMB and SGD, with a portion bearing floating interest rates; the gearing ratio increased Outstanding Borrowings (As of June 30) | Indicator | June 30, 2025 (HKD millions) | December 31, 2024 (HKD millions) | | :--- | :--- | :--- | | Bank borrowings due within one year | 82.1 | 88.1 | - Currency composition: 77.5% denominated in RMB and 22.5% in SGD[45] - Interest rate composition: Approximately 22.5% bear floating interest rates, with the remainder bearing fixed interest rates[45] Gearing Ratio (As of June 30) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing ratio | 7.1% | 5.5% | Financial Management and Policies The Group's financial policies aim to minimize financial risks, avoiding speculative derivative financial transactions and high-risk financial product investments for liquid assets - Policy objective: To minimize financial risks[47] - Investment restrictions: No participation in speculative derivative financial transactions and no investment of liquid assets in high-risk financial products[47] Foreign Exchange Fluctuation Risk The Group's operations are primarily in China and Singapore, with transactions in RMB, SGD, USD, and HKD; the Group closely monitors foreign exchange risk and may hedge when necessary, but still faces exchange rate risk from financial statement translation into HKD - Principal business regions: China and Singapore[48] - Principal transaction currencies: RMB, SGD, USD, and HKD[48] - Risk management: Closely monitors foreign exchange risk and considers hedging when necessary[48] - Presentation currency risk: Faces exchange rate risk arising from the translation of interim condensed consolidated financial statements into HKD[48] Asset Pledges As of June 30, 2025, the Group's bank borrowings and lease liabilities are secured by buildings and structures, investment properties, right-of-use assets, and bank balances Pledged Assets (As of June 30) | Pledged Assets | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Buildings and structures | 21,773 | 30,622 | | Investment properties | 32,524 | 32,901 | | Right-of-use assets | 1,537 | 1,434 | | Bank balances | 1,047 | 305 | | Total | 56,881 | 65,262 | - Secured liabilities: Bank borrowings of approximately HKD 82,081 thousands and lease liabilities of approximately HKD 162 thousands[49] Significant Capital Commitments and Investments The Group's contracted capital commitments not provided for in the interim condensed consolidated financial statements primarily relate to the acquisition of property, plant and equipment Capital Commitments (As of June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Acquisition of property, plant and equipment | 4,606 | 5,284 | Employees As of June 30, 2025, the Group's employee count slightly decreased, and staff costs also declined; the Group offers competitive remuneration and share award schemes to incentivize and retain talent - Number of employees: 655 (December 31, 2024: 688)[52] - Staff costs: Approximately HKD 72,402 thousands (2024: approximately HKD 75,099 thousands)[52] - Remuneration policy: Offers competitive remuneration packages, performance-based salaries and bonuses, and a share award scheme to incentivize and retain talent[52] Outlook The Group maintains a cautiously optimistic outlook for the second half, focusing on consolidating market share for existing advantageous products and quality services, while adjusting sales and operational strategies as needed to address challenges Overall Outlook The Group faced intense market competition in the first half and holds a cautiously optimistic outlook for the second half, aiming to consolidate market share and adjust strategies to meet challenges - First-half challenge: Impact of intense market competition[53] - Second-half strategy: Consolidate market share for existing advantageous products and quality services, continuously monitor market dynamics, and adjust sales and operational strategies as appropriate[53] Pharmaceutical Business Outlook The pharmaceutical business will continue to strengthen revenue contributions from existing advantageous products, advance new product R&D, and build a "technology-led, service-enabled" dual-driven development model to strive for sustained growth - First-half strategy: Adjusted selling prices for some products to secure customer relationships and market share[54] - Future strategy: Strengthen revenue contribution from existing advantageous products, advance new product R&D, enrich the sales product portfolio, and build a "technology-led, service-enabled" dual-driven development model[54] Fitness Business Outlook The fitness business will closely monitor changes in the Singapore and Taiwan fitness industry landscape, developing more effective strategies including innovative services, diversified membership packages, personal training expansion, brand collaborations, and digital marketing to strengthen brand image - Future strategy: Closely monitor changes in the Singapore and Taiwan fitness industry landscape and formulate effective business development strategies[55] - Singapore fitness business initiatives: Emphasize innovation and diversified services, launch more varied membership packages, enrich personal training expansion courses, seek brand collaborations, and strengthen digital marketing to enhance customer acquisition capabilities[55] Dividend Policy The Board considers it prudent to maintain an appropriate level of capital to seize future business opportunities, thus not recommending an interim dividend for the six months ended June 30, 2025 - Dividend recommendation: No interim dividend recommended (2024: Nil)[56] - Reason: To maintain an appropriate level of capital to seize future business opportunities[56] Other Information Compliance with Corporate Governance Code The Company has complied with all applicable code provisions of the Corporate Governance Code, except for the deviation from code provision C.2.1 where the Chairman and Chief Executive Officer are the same person; the Board believes this arrangement benefits business strategy execution and operational efficiency, without compromising power balance - Compliance status: Complied with all applicable code provisions, except for a deviation from code provision C.2.1[57] - Reason for deviation: Mr. Wang Feifei serves concurrently as Chairman and Group President; the Board believes this arrangement benefits business strategy execution and operational efficiency, and that the balance of power, accountability, and independent decision-making are not compromised[57] - Oversight mechanism: The Audit Committee has direct access to external auditors and independent professional advisors[57] Review by Audit Committee The Audit Committee has reviewed the Group's accounting principles and practices, discussed internal controls and financial reporting matters, including a general review of the unaudited interim financial report, primarily relying on the external auditor's review results and management's report - Review scope: Accounting principles and practices, internal controls and financial reporting matters, and the unaudited interim financial report[58] - Review basis: Results of the external auditor's review conducted in accordance with Hong Kong Standard on Review Engagements 2410, and reports submitted by management[58] - Nature of review: General review, without detailed independent audit examination[58] Purchase, Sale or Redemption of Shares For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares - Share transactions: No shares of the Company were purchased, sold, or redeemed during the period[59] Events After Reporting Period Subsequent to the reporting period, the Company renewed a Singapore fitness center lease agreement and entered into a construction contract with an associate for a Beijing R&D complex project, with details disclosed in Note 15 - Singapore fitness center lease renewal: A new two-year lease was entered into on July 18, 2025[60] - Beijing R&D complex project: A construction contract was signed on August 18, 2025, valued at approximately RMB 33,672 thousands[60] - Details reference: Note 15 "Events After the Reporting Period" contained in this announcement[60] Interim Report Publication The Company's interim report for the six months ended June 30, 2025, will be published on the HKEX and the Company's website in due course - Publication platforms: HKEX website (http://www.hkexnews.hk) and the Company's website (http://www.kontafarma.com.hk)[61](index=61&type=chunk) - Report nature: The financial results contained in this announcement do not constitute statutory financial statements[61] Board Composition As of the date of this announcement, the Board comprises four executive directors, one non-executive director, and three independent non-executive directors, with Mr. Wang Feifei serving concurrently as Chairman and President - Board members: Four executive directors (Mr. Wang Feifei, Ms. Qiao Lina, Ms. Guo Zixiu, Mr. Liu Jiankun), one non-executive director (Mr. Huang Yu), and three independent non-executive directors (Dr. Deng Lihua, Dr. He Haoming, Mr. Yao Xiaomin)[62] - Chairman and President: Mr. Wang Feifei[62]