TruScreen : 2023 Annual Report

Annual Report 2023

TruScreen Group Limited

1. world without cervical cancer.

TRUSCREEN GROUP LIMITED ANNUAL REPORT 2023 • 1

Corporate Directory

DIRECTORS

Anthony Ho

Non-Executive Independent Chairman

Christopher Horn

Non-Executive Independent Director

Juliet Hull

Non-Executive Director

Dr Dexter Cheung

Non-Executive Independent Director

MANAGEMENT

Dr Beata Edling

Chief Executive Officer

Edmond Capcelea

Chief Technology Officer

Guy Robertson

Chief Financial Officer

Dr Jerry Tan

General Manager Commercial

REGISTERED OFFICE

C/- HLB Mann Judd Limited,

Level 6, Equitable House

57 Symonds Street, Grafton,

Auckland, New Zealand

NZX Code : TRU.NZX

ASX Code : TRU.AX

AUDITOR

RSM Hayes Audit

Level 1, 1 Broadway

Newmarket

Auckland 1023

New Zealand

SHARE REGISTRAR

Link Market Services

PO Box 91976, Auckland 1142,

New Zealand

Level 30,

PwC Tower 15 Customs Street West

New Zealand

Investor enquiries

[phone]

Investor email

[e-mail]

Website

www.linkmarketservices.co.nz

LAWYERS

New Zealand

Corporate Counsel - Sean Joyce [e-mail]

Australia

Addisons - Li-Jean Chew [e-mail]

TRUSCREEN GROUP LIMITED ANNUAL REPORT 2023 • 2

Table of Contents

Chairman's Letter	4
Operations Report	8
Directors' Report	16
Financial Statements	23
Auditor's Report	55
Governance	59
Shareholder Information	67

TRUSCREEN GROUP LIMITED ANNUAL REPORT 2023 • 3

Chairman's Letter

Dear fellow Shareholders,

Our TruScreen technology was featured in May 2023 in the China Blue Paper "Cervical Cancer Three Stage Standardised Prevention and Treatment". TruScreen achieved a further significant clinical recognition when TruScreen was included in the CSCCP's (Chinese Society for

Colposcopy and Cervical Pathology) national "China Cervical Cancer Screening Management Guideline". These were announced in April/May 2023, after the financial year end. The endorsements by the CSCCP Guideline and the Chinese Blue Paper vindicated our long commercialisation journey in China. More details are in the Operations Report.

Truscreen Group Limited was able to maintain its year on year sales notwithstanding a frustrating COVID receding year, with extended lockdowns in key cities in our major market China, and the disruption to our business in Russia and Eastern Europe from the Ukraine war which continued throughout the reporting period.

Our AI enabled opto-electricaltechnology-based real time, low cost and portable system for the detection of cancerous or pre-cancerous cells in cervical tissues has now established a strong position in the WHO's quest to eliminate cervical cancer by the end of the century. TruScreen's disruptive technology is non-invasive for women and provides objective and fast cervical cancer screening, thus providing an efficient alternative to conventional methods requiring specimen collections for laboratory analysis. Importantly, it also breaks down cultural barriers against conventional tissue specimen collections.

I commend the Operations Report to our shareholders and stakeholders, to appreciate what was achieved during FY2023.

The TruScreen revenue model is to achieve recurring revenue from the supply of Single Use Sensor (SUS). The consumption of SUS is a function of the critical mass of installed and in use of our TruScreen screening devices. We are now seeing a higher growth rate of sales for SUS versus devices, validating the revenue model. The focus of our distributors is the SUS pull through from each installed medical screening device. Operationally, we maintain a tight low cost overhead in support of our global distributors. Our China distributor Beijing Siweixiangtai Tech Ltd Co, with the benefit of the new "made in China" device, have made significant progress in securing sales to hospitals and gaining gynaecological department acceptances. A new distribution channel has been identified in public Health Check Centres, and we expect to see significant growth in this market sector in the years ahead.

TRUSCREEN GROUP LIMITED ANNUAL REPORT 2023 • 4

Chairman's Letter

One of the objectives of TruScreen for FY2024 is to drive down our cost of manufacturing. We need to disrupt our internal processes to ensure that we remain competitive in our markets.

In late 2022, your board recognised the receding of COVID and the need for the company to have a focused CEO to take it to the next growth phase. Dr. Beata Edling was appointed Chief Executive Officer in October 2022. Dr Edling, previously Truscreen's Medical Affairs and Market Access Lead, and her small team have performed well during the year in supporting distributors, the formation of international experts' group, and engagement with key opinion leaders. The team has also made excellent progress on regulatory compliance with the new Medical Device Regulation (MDR) global standards, and with clinical data from the Royal Hospital for Women in Sydney and from the trial in Zimbabwe, are well advanced in a project to enhance the TruScreen technology through improvement in the algorithm performance.

On behalf of the board, I thank Juliet Hull, our non-executive director, who stepped up as Interim CEO during the height of the COVID pandemic. Juliet has resumed her role as a non-executive director of the company.

With the support of our shareholders, we raised approximately $1.6 million during the year with the issue of 53,775,755 shares at NZ$0.03 per share. While we continue our drive to expand the business and drive towards profitability, we are also actively looking at business opportunities that will add value for shareholders.

On behalf of the board, I thank our team, our shareholders, global distributors, suppliers, medical advisory groups and stakeholders for their support as we continue our quest to make a difference to the elimination of cervical cancer by the end of the century.

Anthony Ho

Chairman

TRUSCREEN GROUP LIMITED ANNUAL REPORT 2023 • 5