At the risk of provoking the most ridiculous debate in the history of ridiculous debates, I don’t read it that way.
At conception the biological entity in question is not producing any reproductive cells, large or small. On the face of it, using this definition, every human being is something other than a male or female. I’m not joking, that’s my interpretation of the literal meaning of the words.
I think I understand what they’re trying to say but the wording is very strange. Perhaps this is a textbook definition that has a commonly accepted meaning?
That’s just my opinion. I might be missing something.