Financial Performance - For the year ended December 31, 2023, sales of healthcare products and supplements decreased by approximately 85.4%[14]. - For the year ended 31 December 2023, the Group's revenue decreased by approximately RMB701,000, or approximately 2.8%, from approximately RMB25.3 million in 2022 to approximately RMB24.6 million[37]. - Revenue from the sales of male fertility IVD reagents accounted for approximately 78.3% of total revenue, amounting to approximately RMB24.3 million, which represented an increase of approximately RMB1.1 million or approximately 4.9% from RMB23.2 million in 2022[38]. - The Group recorded a gross profit of approximately RMB16.1 million for the year ended 31 December 2023, a decrease of approximately RMB821,000, or approximately 4.9%, from approximately RMB16.9 million in 2022[40]. - The gross profit margin decreased from approximately 66.8% in 2022 to approximately 65.3% in 2023[40]. - The healthcare products and supplements segment contributed only 1.3% to the Group's total revenue in 2023, down from approximately 8.5% in 2022[27]. - Other income decreased by approximately RMB 150,000 or 17.0% to approximately RMB 734,000 for the year ended 31 December 2023, primarily due to a decrease in bank interest income[43]. - The Group recorded impairment losses on trade receivables of approximately RMB 1.4 million for the year ended 31 December 2023, compared to approximately RMB 373,000 for the year ended 31 December 2022, representing a significant increase[45]. - The loss attributable to owners of the Company was approximately RMB 5.8 million for the year ended 31 December 2023, an increase of approximately RMB 2.7 million or 88.0% compared to approximately RMB 3.1 million for the year ended 31 December 2022[59]. - Basic loss per share for the year was RMB 1.39 cents, compared to RMB 0.76 cents for the year ended 31 December 2022[60]. Market Trends - The birth rate in the PRC has fallen for six consecutive years, from 12.43‰ in 2017 to 6.39‰ in 2023[14]. - The company maintains a cautious but optimistic outlook on business recovery, anticipating a potential rebound in the birth rate due to cultural factors in the upcoming Year of the Loong[15]. - Despite the challenges from the COVID-19 epidemic, sales of biological reagents and auxiliary reproductive supplies remained stable during the year[14]. Corporate Governance - The company has adopted and complied with the Corporate Governance Code during the year ended December 31, 2023[175]. - The Board conducted reviews of the internal control system to ensure effectiveness and adequacy[176]. - The controlling shareholders have confirmed compliance with the terms of the Deed of Non-Competition for the year ended December 31, 2023[186]. - The company has a clear delineation of businesses between the Group and its controlling shareholders as of December 31, 2023[184]. - The company has a compliance officer appointed on September 25, 2017, to oversee regulatory adherence[165]. - The Board is committed to high corporate governance standards to safeguard shareholder interests[174]. - The Group's business management is collectively overseen by the Board, ensuring decisions are made in the interest of the Group[190]. - The Board has established specific committees to handle various responsibilities, with terms of reference available on the Company and Stock Exchange websites[192]. Human Resources - The Group had 96 full-time employees as of December 31, 2023, an increase from 82 in 2022, with staff costs remaining stable at approximately RMB14.8 million[74][77]. - The financial controller and company secretary has over 18 years of experience in finance and accounting[167]. - The deputy general manager and chief technology officer has over 20 years of experience in the medical devices and IVD reagents industry[169]. Strategic Initiatives - The Group plans to continue research and testing on rapid point-of-care diagnostic testing (POCT) using immunoassay techniques and intends to apply for medical device registration upon achieving satisfactory results[31]. - A memorandum of understanding was signed with Guangdong QianZhu Machine Technology Limited for potential cooperation in the sale and distribution of the Group's biological reagents and POC biomedical testing products in the PRC[33]. - The company has a focus on expanding its product offerings in the male fertility sector, indicating a strategic direction towards new product development[134]. - The company is actively seeking overseas business cooperation opportunities to enhance its market presence[134]. Financial Position - As of 31 December 2023, the Group recorded total cash and bank balances of approximately RMB 32.9 million, a decrease from approximately RMB 33.3 million as of 31 December 2022, mainly due to payments of daily operating expenses[69]. - The equity attributable to owners of the Company was approximately RMB51.0 million as of December 31, 2023, down from approximately RMB56.5 million in 2022[71][72]. - The Group had no outstanding corporate guarantees or significant contingent liabilities as of December 31, 2023[99][103]. - The Group did not hold any significant investments as of December 31, 2023[91]. - The Group did not have any capital commitments for the acquisition of property, plant, and equipment as of December 31, 2023[93]. Leadership - Mr. Zhang Shuguang, aged 53, is the executive Director and chairman of the Board, with over 19 years of experience in the IVD reagents industry in China[122][125]. - Mr. Zhang Chunguang, aged 56, serves as the executive Director and chief executive officer, having over 10 years of experience in the IVD reagents industry in China[122][123]. - Mr. Poon Lai Yin Michael, aged 52, is the executive Director and chief financial officer, responsible for financial management and corporate finance, with over 20 years of experience in corporate management and financial reporting[127][128]. - The management team has extensive experience in their respective fields, which supports the company's operational and strategic initiatives[122][127][134].
华康生物医学(08622) - 2023 - 年度财报