Financial Performance - Biosino Bio-Technology reported a significant increase in revenue, achieving a total of RMB 200 million for the first half of 2023, representing a growth of 15% compared to the same period last year[19]. - The company's main business revenue for the six months ended June 30, 2023, was approximately RMB 139.1 million, a decrease of about 19.3% compared to RMB 172.4 million in the same period of 2022[32]. - Gross profit for the reporting period was approximately RMB 66.7 million, down about 4.8% from RMB 70.1 million in the same period last year, with a gross margin of approximately 48% compared to 41% in 2022[33]. - The company reported a loss of approximately RMB 8 million for the reporting period, compared to a profit of approximately RMB 4.7 million in the same period last year[37]. - The total comprehensive income for the six months ended June 30, 2023, was a loss of RMB 5,368,000, compared to a loss of RMB 7,956,000 for the same period in 2022[72]. - The operating profit for the six months ended June 30, 2023, was RMB 72,470,000, a decrease from RMB 102,381,000 in the same period of 2022, representing a decline of approximately 29.3%[89]. - The total tax expense for the six months ended June 30, 2023, was RMB 2,201,000, compared to RMB 2,440,000 in 2022, reflecting a decrease of approximately 9.8%[93]. - Basic earnings per share for the six months ended June 30, 2023, remained unchanged at RMB 0.50, consistent with the same period in 2022[94]. - The company did not declare an interim dividend for the six months ended June 30, 2023, which is the same as in 2022[98]. Research and Development - Research and development expenses increased by approximately 32.8% to RMB 16 million from RMB 12 million in the same period last year, with 49 Class II products and 3 Class III products completed for registration changes[36]. - The company is committed to developing new diagnostic technologies and products to meet the evolving needs of healthcare institutions[19]. - Future outlook indicates a strategic focus on expanding product lines and enhancing research and development efforts to maintain competitive advantage in the market[19]. - The company aims to leverage its strong ties with the Chinese Academy of Sciences to further enhance its research capabilities and product offerings[19]. Market Position and Strategy - The company expanded its distribution network, now covering over 600 distributors across more than 30 provinces and municipalities in China, enhancing its market reach[19]. - Biosino's diagnostic reagent products have gained widespread recognition, with the brand being awarded the "Beijing Famous Brand Product" title in 2002 and the "First Brand in User Satisfaction for Diagnostic Reagents in China" in 2005[19]. - The company plans to maintain quality advantages in traditional biochemical diagnostic products and increase market share through successful bidding in centralized procurement[40]. Financial Health and Assets - Biosino's financial health remains robust, with a solid balance sheet supporting ongoing investments in technology and market expansion initiatives[19]. - The net debt-to-equity ratio increased to 40% from 27% in the previous year, with total liabilities to total assets ratio remaining stable at 61%[45]. - As of June 30, 2023, the company had total non-current assets of RMB 208,403,000, slightly up from RMB 205,785,000 at the end of 2022[67]. - The company’s cash and cash equivalents decreased to RMB 54,777,000 as of June 30, 2023, down from RMB 77,349,000 at the end of 2022[67]. - The company’s inventory increased to RMB 65,012,000 as of June 30, 2023, compared to RMB 55,486,000 at the end of 2022[67]. - Total equity as of June 30, 2023, was RMB 226,151,000, down from RMB 234,107,000 as of December 31, 2022, indicating a decline of about 3.4%[69]. - The company reported a net cash decrease of RMB 22,572,000 for the six months ended June 30, 2023, compared to a decrease of RMB 8,347,000 in the same period of 2022[74]. Employee and Administrative Expenses - Total employee costs for the six months ended June 30, 2023, were approximately RMB 47,700,000, an increase of 15.8% from RMB 41,200,000 in the previous year[54]. - The increase in administrative expenses by approximately 20.6% to RMB 25.8 million was primarily due to rising employee costs[35]. - Sales and distribution expenses rose by approximately 7.9% to RMB 30.7 million, attributed to increased sales efforts[34]. - The total management compensation for the six months ended June 30, 2023, was RMB 3,145,000, a decrease from RMB 3,486,000 in 2022, reflecting a decline of about 9.8%[111]. Corporate Governance - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the period[132]. - The company has complied with all corporate governance code provisions during the period, except for the internal audit function as per code provision D.2.5[133]. - The board has implemented measures to fulfill internal audit functions, including appointing external consultants for internal reviews[134]. - Following the resignation of an independent non-executive director, the company initially failed to meet the requirement of having at least three independent non-executive directors, which was rectified after a new appointment[137]. Shareholding and Securities - As of June 30, 2023, Mr. Wu Lebin holds 3,500,878 shares, representing 4.35% of the company's domestic shares and 2.42% of the total registered capital[116]. - Mr. Chen Peng holds 11,330,334 shares, accounting for 14.09% of the domestic shares and 7.83% of the total registered capital[116]. - Mr. Chen Zhengyong owns 10,000,000 shares, which is 12.43% of the domestic shares and 6.91% of the total registered capital[116]. - Beijing Pusai Asset Management Co., Ltd. directly holds 31,308,576 shares, representing 38.93% of the domestic shares and 21.64% of the total registered capital[118]. - Hong Kong Zhixin Investment Co., Ltd. holds 27,256,143 H shares, accounting for 42.40% of the H shares[118]. - Yunnan Shengneng Investment Partnership holds 10,939,314 domestic shares and 6,780,000 H shares, representing 13.60% and 10.55% of the respective categories[118]. - The company did not grant any rights to directors or supervisors to purchase shares or debt securities as of June 30, 2023[127]. - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the six months ending June 30, 2023[129]. - No directors, supervisors, or major shareholders held interests in any business that competes directly or indirectly with the company during the reporting period[128]. - The company has adopted the standards outlined in GEM Listing Rules 5.48 to 5.67 for the trading of securities by directors, with no known violations reported as of June 30, 2023[130].
中生北控生物科技(08247) - 2023 - 中期财报