Shanghai Haohai Biological Technology : ANNOUNCEMENT OF ANNUAL RESULTSFOR THE YEAR ENDED 31 DECEMBER 2020

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Shanghai Haohai Biological Technology Co., Ltd.*

ɪऎ؀ऎ͛ي߅Ҧٰ΅Ϟࠢʮ̡

(a joint stock company incorporated in the People's Republic of China with limited liability)

(Stock code: 6826)

ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020

HIGHLIGHTS OF ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020

• • During the Reporting Period, the Group recorded revenue of approximately RMB1,324.43 million, representing a decrease of approximately RMB271.07 million, or approximately 16.99%, as compared to that in 2019.

• • During the Reporting Period, the Group continued to increase investment in R&D, focusing on expanding the R&D pipelines for innovative products of ophthalmology and medical aesthetics. The R&D expenses during the Reporting Period increased from approximately RMB116.08 million in 2019 to approximately RMB126.47 million, representing an increase of approximately RMB10.39 million, or approximately 8.95%. The proportion of R&D expenses in revenue increased from 7.28% in 2019 to 9.55%.

• • During the Reporting Period, the Group's net profit attributable to shareholders of the listed company and the net profit after deducting non-recurring profit or loss attributable to shareholders of the listed company were approximately RMB230.07 million and RMB206.43 million respectively, representing decreases of approximately 37.95% and 42.25% respectively, as compared to those in 2019, which were mainly due to the fact that the operating revenue in the first half of the year 2020 was greatly affected by the Pandemic. By the second half of the year 2020, however, the Group's net profit attributable to shareholders of the listed company has resumed a year-on-year growth.

• • The Board has proposed to declare the final dividend of RMB0.50 (inclusive of tax) per share for the year ended 31 December 2020.

The board of directors (the "Board") of Shanghai Haohai Biological Technology Co., Ltd. (the "Company") is pleased to announce the audited consolidated annual results of the Company and its subsidiaries (the "Group", "we", "our" or "us") for the year ended 31 December 2020 (the "Reporting Period"), together with the comparative figures for the year ended 31 December 2019.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended 31 December 2020

2020	2019
Notes	RMB' 000	RMB' 000
REVENUE	4	1,324,427	1,595,498
Cost of sales	(334,004)	(363,999)
Gross profit	990,423	1,231,499
Other income and gains, net	4	180,737	129,498
Selling and distribution expenses	(555,727)	(544,128)
Administrative expenses	(216,759)	(268,985)
Impairment losses on financial assets	1,369	923
Research and development costs	(126,474)	(116,076)
Other expenses	(11,507)	(21,756)
Finance costs	(4,905)	(4,538)
Share of profits and losses of:
A joint venture	-	27,550
An associate	(131)	362
PROFIT BEFORE TAX	5	257,026	434,349
Income tax expense	6	(30,686)	(57,972)
PROFIT FOR THE YEAR	226,340	376,377
OTHER COMPREHENSIVE INCOME
Other comprehensive (loss)/income that may be
reclassified to profit or loss in subsequent periods:
Exchange differences on translation of foreign operations	(13,962)	22,019
Net other comprehensive (loss)/income that may be
reclassified to profit or loss in subsequent periods	(13,962)	22,019
2

Note

2020 RMB' 000

2019 RMB' 000

Other comprehensive income that will not be reclassified to profit or loss in subsequent periods:

Equity investments designated at fair value through other comprehensive income:

Changes in fair value Income tax effect

Net other comprehensive income that will not be reclassified to profit or loss in subsequent periods

OTHER COMPREHENSIVE INCOME

FOR THE YEAR, NET OF TAXTOTAL COMPREHENSIVE INCOME

FOR THE YEAR

Profit attributable to:

Owners of the parent Non-controlling interestsTotal comprehensive income attributable to:

Owners of the parent

Non-controlling interests

EARNINGS PER SHARE ATTRIBUTABLE TO

ORDINARY EQUITY HOLDERS OF THE PARENT

Basic and diluted (RMB)

- For profit for the year

(9,071)

8,189

841 (1,365)

(8,230) 6,824

(8,230) 6,824

(22,192) 28,843

204,148 405,220

230,072 370,779

(3,732) 5,598

226,340 376,377

210,969 394,023

(6,821) 11,197

204,148 405,220

8

1.30

2.27

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 December 2020

2020	2019
Notes	RMB' 000	RMB' 000
NON-CURRENT ASSETS
Property, plant and equipment	978,017	895,071
Right-of-use assets	202,378	216,714
Other intangible assets	404,332	430,609
Goodwill	385,490	333,493
Investment in a joint venture	9	45,864	-
Investment in an associate	4,355	5,329
Equity investments designated at fair value
through other comprehensive income	10	405,279	292,630
Deferred tax assets	26,186	18,393
Other non-current assets	36,845	14,257
Total non-current assets	2,488,746	2,206,496
CURRENT ASSETS
Inventories	255,127	239,988
Trade and bills receivables	11	340,747	389,999
Prepayments, other receivables and other assets	55,374	92,880
Financial assets at fair value through profit or loss	15,145	-
Pledged deposits	50,963	-
Cash and bank balances	3,092,603	3,222,508
Total current assets	3,809,959	3,945,375
CURRENT LIABILITIES
Trade payables	12	28,032	36,786
Other payables and accruals	296,942	263,319
Interest-bearing bank and other borrowings	13	87,708	25,710
Tax payable	21,079	34,152
Total current liabilities	433,761	359,967
NET CURRENT ASSETS	3,376,198	3,585,408
TOTAL ASSETS LESS CURRENT LIABILITIES	5,864,944	5,791,904
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