Sinopharm Tech : FIRST QUARTERLY RESULTS ANNOUNCEMENT FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2021

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Sinopharm Tech Holdings Limited

國 藥 科 技 股 份 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8156)

FIRST QUARTERLY RESULTS ANNOUNCEMENT

FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2021

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.

This announcement, 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 announcement 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 announcement misleading.

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RESULTS

The board of Directors of the Company (the "Board") announces that the unaudited consolidated financial results of the Company and its subsidiaries (collectively the "Group") for the three months ended 30 September 2021 (the "Period 2021"), together with the comparative unaudited figures for the corresponding period in 2020 (the "Period

2020"), are as follows:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

		(Unaudited)
		Three months ended
		30 September
		2021			2020
	Notes	HK$'000	HK$'000
Revenue	2	1,679			46,054
Costs of sales and services		(1,317)	(33,335)
Gross profit		362			12,719
Other income and gains		8,770			1,465
Selling and distribution expenses		(164)	(4,531)
Administrative and operating expenses		(13,772)	(11,250)
Share of profits of associates		62			1,766
Operating (loss)/profit		(4,742)	169
Finance costs		(4,632)	(4,664)
Loss before tax	3	(9,374)	(4,495)
Income tax expense	4	-	(127)
Loss for the period		(9,374)	(4,622)
Loss for the period attributable to:
Equity holders of the Company		(9,395)	(4,635)
Non-controlling interests		21			13
		(9,374)	(4,622)

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		(Unaudited)
		Three months ended
		30 September
		2021		2020
	Notes	HK$'000	HK$'000
Other comprehensive (loss)/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		(238)	1,087
Total comprehensive loss for the period		(9,612)	(3,535)
Total comprehensive loss for the period
attributable to:
Equity holders of the Company		(9,633)	(3,612)
Non-controlling interests		21		77
		(9,612)	(3,535)
		HK Cents	HK Cents
Loss per share attributable to equity holders
of the Company	5
Basic		(0.21)	(0.11)
Diluted		N/A	N/A

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NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the three months ended 30 September 2021

1. BASIS OF PREPARATION AND PRINCIPAL ACCOUNTING POLICIES
   The unaudited consolidated results have been prepared in accordance with accounting principles generally accepted in Hong Kong which include Hong Kong Financial Reporting Standards ("HKFRSs"), Hong Kong Accounting Standards and Interpretations issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA") and the applicable disclosure requirements of GEM Listing Rules.
   Except as described below, the accounting policies and methods of computation used in the unaudited consolidated financial results for the three months ended 30 September 2021 are the same as those followed in the preparation of the Group's annual financial statements for the year ended 30 June 2021.
   The Group has adopted all of the new and revised standards, amendments and interpretations which are relevant to its operations and effective for the accounting period beginning on 1 July 2021. The adoption of these new and revised standards, amendments and interpretation does not have significant impact on the accounting policies of the Group, and the amounts reported for the current period and prior periods.
   The Group has not early applied any new and revised HKFRSs that have been issued but are not yet effective.
2. REVENUE
   The principal activities of the Group are provision of (i) lottery-related services, (ii) internet plus services (solution and supply chain), (iii) manufacturing and distribution of personal protective equipment and (iv) others services.

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Revenue represents income from the following services rendered by the Group, net of returns, discounts allowed or sales taxes:

		(Unaudited)
		Three months ended
		30 September
		2021			2020
		HK$'000	HK$'000
	Point in time
	Internet plus services (supply chain)
	- Trading of goods	-	17,094
	Manufacturing and distribution of personal protective equipment	1,255			28,137
		1,255			45,231
	Over time
	Lottery-related services	424			823
	Total	1,679			46,054
3.	LOSS BEFORE TAX
	Loss before tax has been arrived at after charging/(crediting):
		(Unaudited)
		Three months ended
		30 September
		2021			2020
		HK$'000	HK$'000
	Cost of services	64			463
	Cost of inventories sold	1,253			32,872
	Depreciation of property, plant and equipment	257			397
	Depreciation of right-of-use assets	240			80
	Amortisation of intangible assets	-	5
	Gain on disposal of subsidiaries	(8,680)		-
	Exchange (gain)/losses, net	(3)		79
	Interest on convertible bonds	4,050			4,112

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