Sinopharm Tech : CHARACTERISTICS OF GEM (“GEM”) OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE “STOCK EXCHANGE”)

(Stock Code: 8156)

2022/2023

Interim Report

CHARACTERISTICS OF GEM ("GEM") OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE")

GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration.

Given the companies listed on GEM are generally small and mid-sized companies, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM.

Hong Kong Exchanges and Clearing Limited and the Stock Exchange take no responsibility for the contents of this report, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this report.

This report, for which the directors (the "Directors") of Sinopharm Tech Holdings Limited (the "Company") collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on GEM (the "GEM Listing Rules") for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this report is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this report misleading.

SINOPHARM TECH HOLDINGS LIMITED INTERIM REPORT 2022/2023

1

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2022

RESULTS

The board of Directors of the Company (the "Board") announces that the unaudited condensed consolidated interim results of the Company and its subsidiaries (collectively the "Group") for the three months and six months ended 31 December 2022 (the "Period 2022"), together with the selected comparative unaudited figures for the corresponding period in 2021 (the "Period 2021"), are as follows:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the three months and six months ended 31 December 2022

		(Unaudited)			(Unaudited)
		Three months ended	Six months ended
		31 December	31 December
		2022			2021	2022		2021
	Notes	HK$'000	HK$'000	HK$'000	HK$'000
Revenue	3	9,398			10,051	15,025		11,730
Costs of sales and services		(7,859)		(7,820)	(11,986)		(9,137)
Gross profit		1,539			2,231	3,039		2,593
Other income and gains/(losses)	4	17,324			6,495	28,003		15,265
Selling and distribution expenses		(1,219)		(456)	(1,301)		(620)
Administrative and operating expenses		(4,182)		(11,019)	(9,439)		(24,791)
Share of (loss)/profits of associates		-	3,185	(531)		3,247
Operating profit/(loss)		13,462			436	19,771		(4,306)
Finance costs	5	(2,187)		(4,439)	(4,002)		(9,071)
Profit/(Loss) before tax	6	11,275			(4,003)	15,769		(13,377)
Income tax expense	7	-	-	-	-
Profit/(Loss) for the period		11,275			(4,003)	15,769		(13,377)
Profit/(Loss) for the period
attributable to:
Equity holders of the Company		11,026			(4,108)	15,408		(13,503)
Non-controlling interests		249			105	361		126

11,275		(4,003)	15,769	(13,377)

2	SINOPHARM TECH HOLDINGS LIMITED INTERIM REPORT 2022/2023

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2022

		(Unaudited)	(Unaudited)
		Three months ended	Six months ended
		31 December	31 December
		2022		2021	2022	2021
	Notes	HK$'000		HK$'000	HK$'000		HK$'000
Other comprehensive (expenses)/
income for the period, net of tax:
Items that may be reclassified
subsequently to profit or loss:
Exchange differences arising on
translation of financial statements of
overseas operations		(1,718)	281	(2,227)	43
Total comprehensive income/
(expenses) for the period		9,557		(3,722)	13,542	(13,334)
Total comprehensive income/
(expenses) for the period
attributable to:
Equity holders of the Company		9,075		(3,974)	13,692	(13,607)
Non-controlling interests		482		252	(150)	273
		9,557		(3,722)	13,542	(13,334)
Earnings/(Loss) per share attributable
to equity holders of the Company	8
Basic		HK0.24 cents		(HK0.09 cents)	HK0.34 cents	(HK0.30 cents)
Diluted		N/A			N/A	N/A		N/A

The accompanying notes on pages 7 to 23 form an integral part of this interim financial report.

SINOPHARM TECH HOLDINGS LIMITED INTERIM REPORT 2022/2023

3

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2022

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 31 December 2022

			(Unaudited)	(Audited)
		31 December	30 June
		2022		2022
	Notes		HK$'000	HK$'000
Non-current assets		3,247
Property, plant and equipment	9		3,850
Right-of-use assets		400		800
Goodwill			-	-
Interests in joint ventures			-	-
Interests in associates			-	23,621
Financial assets at fair value through other		21,704		-
comprehensive income
Deposits for acquisition of property, plant			537
and equipment			537
			25,888		28,808
Current assets
	2,472
Inventories			682
Trade and other receivables and		18,639
prepayments	10		44,405
Bank balances and cash		7,283		2,991
		28,394		48,078
Current liabilities
Trade payables, accruals and other		54,797
payables	11		76,633
Amount due to directors			-	8,490
Amounts due to related parties			-	12,144
Amounts due to a shareholder		105,747		105,747
Lease liabilities		644		934
Convertible bonds	12	48,190		44,995
Deferred tax liabilities		1,307		1,307
Tax liabilities		33		33
		210,718		250,283
Net current liabilities		(182,324)	(202,205)
Total assets less current liabilities		(156,436)	(173,397)