Revenue Performance - For the six months ended June 30, 2022, the sales of biological reagents and auxiliary reproductive supplies remained stable compared to the same period in 2021[15]. - The Group's revenue decreased by approximately RMB 375,000, or 3.1%, from approximately RMB 12.2 million to approximately RMB 11.8 million during the Reporting Period[28]. - For the six months ended June 30, 2022, total revenue was RMB 11,797,000, a decrease of 3.1% compared to RMB 12,172,000 for the same period in 2021[185]. - Revenue from healthcare products and supplements generated approximately RMB 1.4 million, representing a decrease of approximately RMB 301,000 or 17.7% from approximately RMB 1.7 million in the Corresponding Period[30]. - Revenue from distributors for the six months ended June 30, 2022, was RMB 5,766,000, a decline of 21.4% compared to RMB 7,334,000 in 2021[185]. - Non-distributor revenue increased to RMB 6,031,000, up 24.7% from RMB 4,838,000 in the previous year[185]. - Sales of healthcare products and supplements decreased significantly to RMB 1,396,000, down 17.8% from RMB 1,697,000 in the same period of 2021[185]. - Segment revenue for biological reagents and auxiliary reproductive supplies was RMB 10,401,000 in 2022, a slight decrease of 0.7% from RMB 10,475,000 in 2021[193]. - Revenue from healthcare products and supplements decreased by 17.7% to RMB 1,396,000 in 2022 from RMB 1,697,000 in 2021[193]. Profitability and Expenses - The Group recorded a gross profit of approximately RMB 7.7 million, an increase of approximately RMB 90,000 or 1.2% from approximately RMB 7.6 million during the Corresponding Period[36]. - The gross profit margin increased from approximately 62.2% to approximately 64.9%, attributed to improved profit margins in the healthcare products segment[37]. - Selling and distribution expenses increased by approximately RMB 258,000 or 6.9%, from approximately RMB 3.8 million to approximately RMB 4.0 million, due to increased sales and marketing activities[46]. - Administrative expenses decreased by approximately RMB 461,000 or 10.7%, from approximately RMB 4.3 million to approximately RMB 3.9 million, due to cost control measures[47]. - The loss for the period attributable to owners was approximately RMB 941,000, a decrease from approximately RMB 2.0 million in the Corresponding Period[49]. - Basic loss per share during the Reporting Period was RMB 0.24 cents, compared to RMB 0.51 cents in the Corresponding Period[49]. - The loss before taxation improved to RMB 782,000 in 2022 from a loss of RMB 1,926,000 in 2021[193]. - The company reported a net loss of RMB 941,000 for the period, compared to a net loss of RMB 2,049,000 in the previous year, indicating a significant reduction in losses[193]. Research and Development - The Group completed Class II medical devices registration for the sperm nuclear DNA integrity reagent and filed two Class I medical devices for male fertility IVD reagents during the reporting period[16]. - The commercialisation of new reagents is expected to commence within the current financial year[16]. - Research and development expenses for the six months ended June 30, 2022, were RMB 1,342,000, compared to RMB 1,270,000 for the same period in 2021[159]. - The company is engaged in the research and development of biological reagents and auxiliary reproductive supplies, indicating ongoing investment in innovation and market expansion[167]. Financial Position - As of June 30, 2022, the total cash and bank balances of the Group were approximately RMB 35.2 million, a decrease from RMB 36.2 million as of December 31, 2021, primarily due to daily operating expenses[73][76]. - The equity attributable to owners of the Company amounted to approximately RMB 56.6 million as of June 30, 2022, compared to approximately RMB 57.7 million as of December 31, 2021[75][76]. - Total equity decreased to RMB 56,551,000 from RMB 57,705,000, a decline of 2%[161]. - Current assets decreased to RMB 52,148,000 from RMB 53,664,000, reflecting a decline of 2.8%[160]. - Net current assets stood at RMB 44,517,000, slightly down from RMB 45,027,000, indicating a decrease of 1.1%[160]. - The net cash used in operating activities was RMB 201,000, an improvement compared to RMB 1,600,000 in the same period of 2021[164]. - Cash and cash equivalents at the end of the period were RMB 35,188,000, down from RMB 39,800,000, representing a decrease of 11.5%[164]. - Inventories decreased to RMB 3,288,000 from RMB 4,210,000, reflecting a reduction of 21.9%[160]. - Trade receivables increased to RMB 9,889,000 from RMB 9,399,000, showing a growth of 5.2%[160]. Corporate Governance - The company has established an Audit Committee consisting of three independent non-executive Directors to oversee financial reporting and risk management[152]. - The financial information in the report has not been audited but has been reviewed by the Audit Committee, ensuring compliance with applicable accounting standards[154]. - The Board is committed to high corporate governance standards and has adopted the Corporate Governance Code during the relevant period[141]. - The company will continue to monitor and review its corporate governance practices to ensure compliance with the CG Code[141]. - No substantial shareholders or directors have interests in any competing businesses during the reporting period[130]. Shareholder Information - The total number of shares issued as of June 30, 2022, is 400,000,000[116]. - As of June 30, 2022, Mr. Zhang Shuguang holds a total interest of 244,000,000 shares and options, representing 61.0% of the company's shareholding[114]. - The Company granted a total of 26,008,000 share options at an exercise price of HK$0.125 per share, with all options exercisable until April 8, 2030[62]. - As of June 30, 2022, a total of 23,504,000 share options remained outstanding[65]. - The expected life of the share options is ten years, with an expected volatility of 103.1%[67]. - The company has not reported any significant events affecting its operations since June 30, 2022[103]. - The company has not engaged in any purchases, sales, or redemptions of its listed securities during the reporting period[131].
华康生物医学(08622) - 2022 - 中期财报