Huakang Biomed Announces First Annual Results Since Listing
2019年3月26日 - 10:57AM
JCN Newswire
Huakang Biomedical Holdings Company Limited ("Huakang Biomed" or
the "Company", together with its subsidiaries, the "Group", stock
code: 8622), a medical device group specialised in the research and
development, manufacture and sale of a wide range of IVD reagents
in PRC, is pleased to announce its first annual results for the
year ended 31 December 2018 (the "Year"), since its listing on the
GEM of The Stock Exchange of Hong Kong Limited (SEHK) on 13
December, 2018.
During the Year, the Group recorded satisfactory revenue of
approximately RMB28.7 million (2017: RMB 26.5 million), increase by
8.0%, or RMB2.1 million, compared to the previous year, which was
contributed by an increase in the sales of its detection kit for
IgG antibody to Schistosoma japonicum by approximately 394.0% from
RMB435,000 in 2017 to RMB2.1 million in 2018, primarily because
several new distributors commenced to sell its detection kit for
IgG antibody to Schistosoma japonicum since 2018. The Group also
witnessed an increase in the sales of its liver fluke IVD reagent
products from approximately RMB1.5 million in 2017 to approximately
RMB2.4 million for 2018, representing an annual increase of 63.1%,
or RMB929,000, which was mainly attributable to a wider recognition
and thus higher purchase volume of the products by existing
customers.
The Group recorded a gross profit of RMB21.6 million for the year,
representing an increase of RMB3.0 million or 16.4% from RMB18.5
million for 2017. The Group improved its gross profit margin from
69.8% in 2017 to 75.3% in 2018, which was mainly due to the
decrease in the average headcount of the production staff
(including production, quality management and engineering
departments) and higher production efficiency of the production
staff due to their improved production skills and techniques as
well as the improved efficiency in utilising raw materials in the
production process by the production staff.
The Group recorded a loss for the year of approximately RMB459,000
(2017: net loss for the year of approximately RMB2.0 million). The
decrease in net loss was mainly due to the decrease in listing
expenses. Basic loss per share for the year was RMB0.15 cents
(2017: loss per share of RMB0.75 cents). The Group recorded profit
before tax excluding listing expenses of approximately RMB9.1
million (2017: RMB11.9 million). The Board did not recommend
payment of a final dividend for the Year.
The Group is committed to research and development and conduct the
research and development activities through its internal research
and development department. The total amount of the investment in
the research and development project was approximatelyRMB$2.6
million in 2018 (2017: RMB2.2 million), such increase was mainly
due to that the Group had seven active research projects in 2018
(2017: three). The Group further completed a series of
registrations with the CFDA (China Food and Drug Administration)
and the GDFDA (Guangdong Food and Drug Administration), as well as
filings with the Shenzhen MSA (Market Supervision Administration of
Shenzhen Municipality). For the year ended 31 December 2018, the
products of the Group comprised 32 male fertility IVD reagents, two
parasite antibody detection reagents, one EBV antibody detection
reagent and 6 female fertility IVD reagents, of which 27 IVD
reagents are being manufactured and sold by the Group, including 24
male fertility IVD reagents, two parasite antibody detection
reagents and one EBV antibody detection reagent.
Mr. Zhang Shuguang, Executive Director and Chairman of the Board of
Huakang Biomed commented, "The year 2018 marked a significant
milestone in the development of Huakang Biomed. Listing on the GEM
of SEHK brings new opportunities to the Group. More resources can
be devoted to develop new products, improve existing products and
carrying out international cooperation projects. Despite the impact
of decreasing birth rate of the PRC, the increase in price
sensitivity of some of the customers and the impact of the vaccine
incident of a PRC listed biotech company in late 2018, orders for
our products kept rising during the year. In 2018, the Group
continued to extend its business reach in the PRC and acquired 12
new direct sale customers. We are optimistic about the PRC male
fertility IVD reagent industry and anticipate the PRC Government
will keep focusing and supporting the development of the biomedical
industry. The growth of the industry is expected to be driven by
the increasing rate of infertility, widespread acceptance of
assisted reproductive treatment, rising per capita income and
expenditure on healthcare, implementation of a universal two-child
policy, favourable policies by the PRC Government in support of a
hierarchical medical system and broader coverage of the country's
basic medical insurance system."
Mr. Zhang added, "To capture the market opportunities, the Group
will expand our product portfolio and improve our existing product
offerings, strengthen our product research and development
capabilities, cultivate and recruit talented employees and develop
our auxiliary reproductive supply business. In late 2018, we
participated in the Beijing Andrology Conference, the 19th National
Conference on Association of Andrology in Dalian City and the
exhibition in Nanchang City, We will actively participate in
industry activities in future to expand and consolidate our sales
and distribution network. Looking forward, the Group will improve
the product quality to match the requirement of CE certifications
and apply ISO 13485 certifications in the first half of 2020. We
also intend to apply the CE certifications and initiate
multinational collaboration projects as we introduce overseas
partners, together with their brands and products to PRC in the
second half of 2020. Meanwhile, we plan to export our products to
overseas markets and will actively explore new markets, in
particular, Eastern China and Yangtze River Delta regions such as
Shanghai, and also Liaoning Province, Jilin Province, and
Heilongjiang Province. We will continue striving for better results
for the Group and bringing higher returns to the shareholders."
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