Financial Performance - For the three months ended September 30, 2023, the total revenue was HKD 18,355,000, a decrease of 96.9% compared to HKD 588,842,000 for the same period in 2022[12] - For the nine months ended September 30, 2023, the total revenue was HKD 200,712,000, down 84.3% from HKD 1,275,751,000 in the same period of 2022[12] - The company reported a net loss of HKD 54,976,000 for the three months ended September 30, 2023, compared to a profit of HKD 257,246,000 in the same period of 2022[24] - The division's revenue decreased from approximately HKD 1,044,983,000 in Q3 2022 to about HKD 185,559,000 in Q3 2023, representing a decline of 82.24%[43] - The group recorded a revenue of approximately HKD 200,712,000 in Q3 2023, a significant decrease of about 84.27% compared to HKD 1,275,751,000 in the same period of 2022[60] - The company reported a loss attributable to owners of the company of HKD 35,492,000 for the three months ended September 30, 2023, compared to a profit of HKD 91,296,000 in the same period of 2022[46] - The basic and diluted loss per share for the nine months ended September 30, 2023, was HKD (0.068), compared to a profit of HKD 0.166 for the same period in 2022[46] - The total comprehensive loss for the three months ended September 30, 2023, was HKD 57,374,000, compared to a total comprehensive income of HKD 239,090,000 in Q3 2022[70] Revenue Sources and Trends - The demand for COVID-19 related laboratory testing services significantly decreased due to the relaxation of quarantine regulations by the government, impacting revenue negatively[43] - The core business revenue from nucleic acid testing services and rapid antigen test kits has significantly decreased due to the easing threat of the COVID-19 pandemic[129] - The company continues to provide a variety of medical laboratory testing services and quality health check diagnostic services through three medical laboratories and three health check centers in Hong Kong[56] - The sales and distribution of healthcare-related and pharmaceutical products saw a significant decline, with revenue dropping from approximately HKD 216,557,000 in Q3 2022 to about HKD 473,000 in Q3 2023, a decrease of approximately 99.78%[63] - The revenue from logistics services decreased from approximately HKD 7,816,000 in Q3 2022 to about HKD 19,000 in Q3 2023, a decline of 99.76% due to intense market competition and reduced demand for testing supplies and sample logistics services[109] Expenses and Losses - The gross loss for the three months ended September 30, 2023, was HKD 11,403,000, compared to a gross profit of HKD 385,091,000 in Q3 2022[74] - The operating loss for the three months ended September 30, 2023, was HKD 49,241,000, compared to an operating profit of HKD 314,260,000 in the same period of 2022[74] - Administrative expenses for Q3 2023 were approximately HKD 108,728,000, a decrease of about HKD 48,827,000 or 30.99% compared to HKD 157,555,000 in Q3 2022, mainly due to reduced employee costs[103] - The company’s financing costs increased to approximately HKD 3,936,000 in Q3 2023, up from HKD 3,259,000 in Q3 2022, due to costs associated with convertible bonds issued[103] Government Support and Taxation - The company recognized government subsidies related to COVID-19 amounting to approximately HKD 1,661,000 during the nine months ended September 30, 2022[13] - The effective corporate income tax rate for the nine months ended September 30, 2023, was 25%, consistent with the same period in 2022[16] - The tax expense for the three months ending September 30, 2023, included a current tax expense of HKD (133,000) for Hong Kong profits tax[32] - The deferred tax for the period was recorded as HKD (302,000) for the three months ending September 30, 2023[32] - The group recognized government subsidies of approximately HKD 48,000 during the nine months ended September 30, 2023, related to employment support provided by the Chinese government[81] Corporate Governance and Shareholder Information - The company has not adopted new Hong Kong Financial Reporting Standards that have been issued but are not yet effective[11] - The company has issued shares listed on the GEM since June 17, 2004[9] - The company’s issued share capital as of September 30, 2023, was 963,231,150 shares with a par value of HKD 0.10 per share[142] - The company has a stock incentive plan that limits the total number of shares granted to no more than 10% of the total issued shares as of August 18, 2021[166] - The maximum rights for each participant in the stock incentive plan cannot exceed 1% of the total issued shares as of August 18, 2021[167] - The company confirmed that all directors complied with the prescribed trading standards and the code of conduct for securities trading during the third quarter of 2023[192] - The company has maintained the public float as specified under the GEM listing rules as of the report date[197] - The company has implemented corporate governance measures emphasizing integrity towards shareholders and the quality of information disclosure[193] Future Plans and Developments - The company aims to expand its market presence through exclusive distribution agreements for NMN products in Hong Kong and Macau[63] - The group plans to introduce new tests, including HPV DNA tests and colorectal cancer DNA tests, and seeks collaboration with the Hong Kong government and medical experts to enter the early screening market for colorectal cancer[116] - The company aims to become the first provider of boron neutron capture therapy for cancer treatment in the Greater China region, targeting advanced radiation therapy for late-stage cancer patients[117] - The company is progressing with the construction of a boron neutron capture therapy center in Boao, aiming for completion by the end of 2024 or early 2025[136] - The company has established partnerships with several domestic hospitals for cancer treatment services, including the upcoming Hainan boron neutron capture therapy center[136] Shareholder and Stock Options - The total number of stock options granted to directors and executives amounts to 8,220,000 shares, with a total exercise value of HKD 8,220,000[154] - The stock options granted to Ms. Xu Haiyin on January 6, 2023, total 5,000,000 shares, with an exercise price of HKD 1.45 per share[164] - During the third quarter of 2023, the company purchased a total of 5,295,000 shares at an approximate total cost of HKD 4,185,000[185] - A total of 582,000 incentive shares were granted to selected participants under the share incentive plan during the third quarter of 2023[185] - The number of incentive shares that can still be granted under the share incentive plan is 95,741,115, which represents 9.94% of the total issued shares of the company[186] - The share incentive plan has a validity period of 10 years from the date of adoption, expiring on August 17, 2031[200]
中国生物科技服务(08037) - 2023 Q3 - 季度财报