Revenue Performance - For the three months ended March 31, 2023, the revenue from the sales of biological reagents and auxiliary reproductive supplies increased by approximately RMB 721,000, representing a growth of 14.4%[17]. - The healthcare products and supplements segment's sales dropped significantly to contribute less than 1% of the Group's total revenue, down from approximately 15.4% in the corresponding period[22]. - The Group's revenue slightly decreased by approximately RMB 139,000, or approximately 2.4%, from approximately RMB 5.9 million to approximately RMB 5.8 million during the Reporting Period[28]. - Revenue for the three months ended March 31, 2023, was RMB 5,761,000, a decrease of 2.4% compared to RMB 5,900,000 in the same period of 2022[143]. - Revenue from biological reagents and auxiliary reproductive supplies and equipment was RMB 5,712,000, up 14.5% from RMB 4,991,000 in the previous year[171]. - Sales of healthcare products and supplements dropped significantly to RMB 49,000 from RMB 909,000, representing a decline of 94.6%[171]. - Revenue from external customers in the PRC was RMB 5,712,000, an increase of 14.4% from RMB 4,991,000 in 2022[176]. - Revenue from Hong Kong decreased to RMB 49,000 from RMB 862,000, a decline of 94.3%[176]. - The company reported no revenue from Canada in the current period, down from RMB 47,000 in the previous year[176]. Profitability and Expenses - The Group recorded a gross profit of approximately RMB 3.9 million during the Reporting Period, an increase of approximately RMB 36,000 or approximately 0.9% from approximately RMB 3.8 million during the Corresponding Period[34]. - The gross profit margin increased from approximately 65.1% to approximately 67.3% during the Reporting Period, mainly due to improved profit margins in the sales of biological reagents and auxiliary reproductive supplies[35]. - The loss for the period attributable to owners of the Company was approximately RMB 514,000, a decrease from approximately RMB 681,000 during the Corresponding Period[45]. - Basic loss per share during the Reporting Period was RMB 0.12 cents, compared to RMB 0.17 cents during the Corresponding Period[49]. - Loss before tax improved to RMB 458,000, a reduction of 25.8% from a loss of RMB 617,000 in the prior year[143]. - Total comprehensive expense for the period attributable to owners of the Company was RMB 462,000, a decrease from RMB 643,000 in the same period last year[144]. - Selling and distribution expenses decreased by approximately RMB 297,000 or approximately 13.7%, from approximately RMB 2.2 million to approximately RMB 1.9 million during the Reporting Period[42]. - Research and development expenses increased from approximately RMB 666,000 to approximately RMB 743,000, representing an increase of approximately RMB 77,000 or approximately 11.6%[43]. Research and Development - The Group specializes in the research and development, manufacturing, and sales of a wide range of In-Vitro Diagnostic (IVD) reagents, focusing particularly on the male fertility IVD reagent market in the PRC[16]. - The Group intends to continue research and testing on rapid Point-Of-Care diagnostic testing (POCT) and polymerase chain reaction testing (PCR testing) for male urinary tract infections, with plans to apply for medical devices registration after satisfactory results[23]. - The Group continues to focus on research and development in biological reagents and auxiliary reproductive supplies, indicating ongoing commitment to innovation and market expansion[147]. - The company continues to focus on research and development in the fields of biological reagents and healthcare products[160]. Corporate Governance and Compliance - The Board is committed to high corporate governance standards, ensuring transparency and accountability to safeguard shareholder interests[126]. - The Company has adopted the Corporate Governance Code and complied with its provisions during the reporting period[127]. - The Audit Committee has reviewed the unaudited condensed consolidated financial results and confirmed compliance with applicable accounting standards and GEM Listing Rules[138]. - The Audit Committee consists of three independent non-executive Directors, ensuring effective oversight of financial reporting and internal controls[136]. - No incidents of non-compliance with the Required Standard by relevant employees were noted during the reporting period[133]. - The Board conducted reviews of the internal control system to ensure its effectiveness and adequacy[128]. Share Capital and Equity - The shares of the Company were listed on GEM of the Stock Exchange on December 13, 2018, with an initial share offer of 100,000,000 new shares at HK$0.5 per share[15]. - As of March 31, 2023, the total number of outstanding share options was 23,504,000, with no options granted, exercised, forfeited, or lapsed during the three months ended March 31, 2023[59][60]. - The company's issued share capital as of March 31, 2023, was approximately HK$4.1 million, with 414,472,000 shares issued at HK$0.01 each[65][67]. - The weighted average number of ordinary shares in issue for the purpose of basic earnings per share was 414,472,000 for the three months ended March 31, 2023, compared to 400,000,000 in 2022[194]. - The Group did not declare or pay any dividends during the three months ended March 31, 2023, and 2022[195]. Investments and Acquisitions - On December 19, 2022, the company agreed to purchase a 19% equity interest in Hainan Jinnuosai for a cash consideration of RMB1.9 million[71][74]. - A supplemental agreement was made on February 9, 2023, stipulating that if conditions are not fulfilled by June 30, 2023, the vendor must refund the RMB1.9 million consideration[77]. - The transaction for the 19% equity interest in Hainan Jinnuosai had not been completed as of March 31, 2023[78]. - The company did not hold any significant investments as of March 31, 2023[79]. - The Group did not engage in any significant acquisitions or disposals of subsidiaries and affiliated companies during the reporting period[83][95]. Other Financial Information - Other income decreased by approximately RMB 82,000 or approximately 45.6%, from approximately RMB 180,000 to approximately RMB 98,000 during the Reporting Period[36]. - Total other income for the three months ended March 31, 2023, was RMB 98,000, a decrease of 45.56% from RMB 180,000 in the same period of 2022[182]. - The loss attributable to owners of the Company for the three months ended March 31, 2023, was RMB 514,000, compared to a loss of RMB 681,000 in the same period of 2022, indicating an improvement[194]. - The Group'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[189]. - The total foreign exchange losses for the three months ended March 31, 2023, were RMB 2,000, slightly down from RMB 3,000 in 2022[184]. - Government grants received decreased to RMB 42,000 in the three months ended March 31, 2023, from RMB 104,000 in the same period of 2022, reflecting a decline of 59.62%[182].
华康生物医学(08622) - 2023 Q1 - 季度财报