• 中国中药 2024 年派发特别股息每股人民币 0.32 元，总股息人民币 7.98 亿 元，总金额达人民币 4.02 亿元。中药材生产经营、中药配方颗粒、中医药 大健康板块均实现增长，中药医院板块同比增长 13%，中成药板块增长显 著。 • 截至 2024 年末，中国中药流动资产为人民币 188.4 亿元，较 2023 年末减 少 5%，总资产为人民币 310.6 亿元，总负债减少至人民币 100.3 亿元。公 司通过深化改革、强化合规建设，推进中药产业现代化，并成功获得中华 老字号认定。 • 中成药板块销售额约为人民币 45.3 亿元，占总营业额的 20.6%，毛利率达 36%，得益于销量增长和规模效应。公司推出枣仁安神胶囊等新产品，并进 行临床测试以提升市场竞争力。大健康产品通过线上线下统筹运营模式扩 展市场，运营 30 家门店，销售额显著增长。 • 中国中药将继续深化改革，强化合规建设，坚定推进人才强企战略，强化 安全环保责任制，优化资源配置，提高生产效率，持续推进品牌差异化发 展，加强市场营销力度，完善现代化治理结构，通过科技赋能提高整体竞 争力，实现可持续发展目标。 • 2025 年，中国中药将 ...

Core Viewpoint - China Traditional Chinese Medicine (CTCM) reported a significant decline in net profit by 98.5% for the fiscal year 2024, primarily due to over 100 million yuan in tax payments that severely impacted profitability and highlighted compliance management issues within the company [1][6][7]. Financial Performance - CTCM's revenue for 2024 was 16.51 billion yuan, a decrease of 8.9% year-on-year [4][5]. - The net profit for 2024 was only 20.77 million yuan, marking a drastic drop of 98.5% compared to the previous year [3][5]. - Gross profit fell to approximately 7.86 billion yuan, down 15.3% from 9.27 billion yuan in the previous year, resulting in a gross margin of 47.6%, a decline of 3.6 percentage points [5]. Business Segment Performance - The production and operation of traditional Chinese medicine materials saw a revenue decline of 25.3% [3]. - The Chinese herbal pieces segment experienced a revenue increase of 17.9%, reaching 3.31 billion yuan, although its gross margin was only 23.2% [5]. - The Chinese medicine formula granules segment, once a key revenue driver, saw a 23.5% drop in revenue to 6.97 billion yuan, with a gross margin decrease from 56.9% to 48.3% [5]. Tax Compliance Issues - CTCM acknowledged that the significant drop in net profit was influenced by tax payments totaling approximately 1.53 billion yuan for the years 2017 to 2023, with 1.02 billion yuan already paid [6][7]. - The tax payments are expected to reduce the net profit attributable to shareholders by about 129 million yuan [6]. Market and Strategic Challenges - The company faces intensified market competition and structural changes in demand, particularly due to the implementation of national centralized procurement policies [4][5]. - CTCM's R&D investment for 2024 was 596 million yuan, a decrease of 13.1% from the previous year, which may hinder its competitive position in the market [5]. Stock Performance and Privatization Attempts - CTCM's stock price has been under pressure, with a significant drop following failed privatization attempts by its controlling shareholder, China National Pharmaceutical Group [8][10]. - The stock price fell by 44.5% to 2.12 HKD after the privatization announcement failed, reflecting investor concerns about the company's future [8][10]. Regulatory Environment - The company is under increasing regulatory scrutiny, necessitating a stronger focus on compliance and quality assurance to regain market trust [7][11].

Financial Performance - The total revenue for the year ended December 31, 2024, was RMB 16,509.71 million, a decrease of 8.9% compared to RMB 18,121.86 million in 2023[4]. - The net profit for the year was RMB 20.77 million, down 98.5% from RMB 1,396.07 million in the previous year[4]. - The gross profit was RMB 7,856.31 million, a decline of 15.3% from RMB 9,274.49 million, with a gross margin of 47.6%, down 3.6 percentage points from 51.2%[10]. - The company reported a net profit attributable to ordinary shareholders of RMB 54,067,000 for 2024, a significant decrease from RMB 1,285,200,000 in 2023, reflecting a decline of approximately 95.8%[91]. - The group's profit for the year was approximately RMB 20,771,000, a decrease of 98.5% from RMB 1,396,070,000, with a net profit margin of 0.1%, down 7.6 percentage points from 7.7%[103]. Revenue Breakdown - Revenue from traditional Chinese medicine production and operation was RMB 1,386.67 million, a decrease of 25.3%[10]. - Revenue from traditional Chinese medicine decoction pieces increased by 17.9% to RMB 3,314.79 million[10]. - Revenue from traditional Chinese medicine formula granules was RMB 6,972.01 million, down 23.5%[10]. - Revenue from proprietary Chinese medicine was RMB 4,552.96 million, an increase of 14.0%[10]. - Revenue from the traditional Chinese medicine health sector was RMB 283.28 million, a decrease of 19.6%[10]. Market and Industry Insights - The company is optimistic about overcoming short-term performance fluctuations based on insights into the long-term development trends of the traditional Chinese medicine industry[5]. - The comprehensive 200 index for Chinese medicinal materials rose from approximately 2,700 points at the end of 2022 to a peak of over 3,000 points in August 2023, indicating significant volatility and high instability in the market[13]. - The company is focusing on the modernization of traditional Chinese medicine, aligning with national strategies and policies to drive industry growth[17]. Operational Efficiency and Innovation - The company is focusing on digital transformation and innovation to enhance operational efficiency and market competitiveness[6]. - The company has established 165 cooperative production bases across 22 provinces, covering 108 varieties of medicinal materials, with a total area exceeding 470,756 acres[14]. - The company has established 26 direct-operated "Shared Chinese Medicine · Intelligent Distribution Centers" across 20 provinces, improving its operational efficiency[16]. - The company has launched a fresh medicinal slice series to diversify its product offerings and meet the varied demands of the market[16]. Research and Development - The company is focused on research and development of new products and technologies in the Chinese medicine sector[62]. - The company has completed research on 34 out of 51 newly issued national drug standards for traditional Chinese medicine formula granules, accounting for 67%[25]. - The company has developed and launched new traditional Chinese medicine products, including the "Danggui Blood Nourishing Soup Granules," which received approval for market entry[25]. Compliance and Governance - The company has established a comprehensive compliance review system, achieving zero major risk events during the reporting period[31]. - The company has maintained compliance with the corporate governance code throughout the year ending December 31, 2024[120]. - The audit committee consists of five members, including four independent non-executive directors, and has reviewed the audited financial results for the year ending December 31, 2024[123]. Future Outlook and Strategic Planning - The company is expected to benefit from the ongoing reforms in centralized procurement, which aim to enhance transparency and efficiency in the pharmaceutical industry[34]. - Future outlook includes plans for market expansion and potential mergers and acquisitions to enhance growth[62]. - The company aims to enhance user data analytics to improve customer engagement and service delivery[126].

证券时报网讯，摩根士丹利发布报告称，中国中药发布盈利警告，业绩远低于市场预期，因此将其评级 从"与大市同步"下调至"减持"，目标价从2.6港元降至1.7港元，大摩将2024年盈利预测下调80%，并将 2025至2030年的盈利预测下调22%至34%，原因包括价格下调、市场竞争加剧和原材料成本上涨等因素 对销售和利润的影响。 校对：姚远 ...

Financial Performance - The group's revenue for the six months ended June 30, 2024, was approximately RMB 8,385,473,000, a decrease of 9.9% compared to RMB 9,302,957,000 in the same period last year[8]. - Gross profit was approximately RMB 4,061,254,000, down 14.6% from RMB 4,757,976,000 year-on-year, with a gross margin of 48.4%, a decline of 2.7 percentage points from 51.1% in the previous year[8]. - The net profit for the period was approximately RMB 214,143,000, a decrease of 65.3% from RMB 616,960,000 in the same period last year, with a net profit margin of 2.6%[60]. - Basic earnings per share were RMB 0.0419, a decline of 63.5% from RMB 0.1149 in the same period last year, reflecting a significant drop in profit attributable to equity holders[61]. - The company reported a total comprehensive income of RMB 213,958,000, down from RMB 624,763,000, a decrease of 65.75%[85]. - Operating profit decreased significantly to RMB 384,582,000 from RMB 814,046,000, representing a decline of 52.77%[85]. - The group recorded other losses of approximately RMB 64,768,000, compared to losses of RMB 14,004,000 in the same period last year, primarily due to a substantial increase in late fees[52]. - The group’s credit impairment losses were approximately RMB 158,768,000, a significant increase from RMB 47,768,000 in the same period last year, with accounts receivable growing by 6.7%[53]. Revenue Breakdown - The revenue contribution from traditional Chinese medicine formula granules was approximately RMB 3,479,735,000, accounting for 41.5% of total revenue[8]. - The revenue from traditional Chinese medicine (TCM) production and operation was RMB 754,277,000, down 14.3% from RMB 880,585,000, accounting for 9.0% of total revenue[42]. - The revenue from TCM decoction pieces increased by 20.8% to RMB 1,576,914,000 from RMB 1,305,191,000, representing 18.8% of total revenue[44]. - The revenue from TCM formula granules decreased by 29.4% to RMB 3,479,735,000 from RMB 4,930,591,000, with a gross profit margin of 59.1%[45]. - The revenue from TCM proprietary medicines was RMB 2,418,349,000, an increase of 18.9% from RMB 2,034,759,000, with a sales cost of RMB 853,221,000[41]. - The revenue for traditional Chinese medicine health sector was approximately RMB 156,198,000, an increase of 2.9% from RMB 151,831,000 in the same period last year, accounting for 1.9% of total revenue[49]. Strategic Initiatives - The company aims to enhance its competitive advantage across the entire industry chain, focusing on sustainable development and quality management of traditional Chinese medicine resources[11]. - The company has completed mid-term adjustments to its "14th Five-Year" strategic plan, focusing on five major business segments: production and operation of medicinal materials, traditional Chinese medicine pieces, formula granules, proprietary Chinese medicines, and health products[9]. - The company launched a brand strategy for "Chinese Medicinal Materials," promoting key products through major media channels to enhance brand value and influence[10]. - The company is actively adapting to the centralized procurement trend and enhancing its competitive advantages through differentiated product strategies[17]. - The company is focusing on the development of key products and has published 15 new guidelines and consensus documents to support sales growth[19]. Compliance and Quality Management - The company has successfully passed compliance checks for several varieties under the new traditional Chinese medicine GAP standards, leading the nation in the number of compliant varieties[11]. - The company has completed the qualification certification for 47 varieties of fresh-cut medicinal materials, enhancing the quality assurance of traditional Chinese medicine[14]. - The company aims to improve compliance management and risk control mechanisms, ensuring no major risk events occurred during the reporting period[28]. - The company has maintained the highest number of national and provincial standard approvals in the industry, reinforcing its market share[18]. Research and Development - The company has developed 5 new excellent varieties and holds 108 patents related to standardized production techniques for traditional Chinese medicine[11]. - Research and development expenses for the period were RMB 267,925,000, compared to RMB 313,614,000 in the previous year, showing a reduction of 14.58%[85]. - The company established a new CNAS laboratory, bringing the total to 7, and collaborated with Guizhou University to publish research in the journal Nature[22]. Market Trends and Regulatory Environment - The National Medical Insurance Administration issued a notice on January 12, 2024, emphasizing the importance of ensuring supply security for selected products in centralized procurement, requiring provinces to monitor supply and rectify issues[31]. - The National Health Commission's action plan for 2024-2027 aims to shift health work focus from "disease-centered" to "health-centered," promoting traditional Chinese medicine (TCM) as a cultural awareness for health improvement[35]. - The National Administration of Traditional Chinese Medicine's notice on June 6, 2024, emphasized the development of rehabilitation services in TCM hospitals to meet the growing demand for TCM rehabilitation services[35]. Financial Position and Liquidity - As of June 30, 2024, the group's current assets amounted to approximately RMB 20,552,746,000, an increase from RMB 19,799,846,000 as of December 31, 2023[62]. - The group's cash and cash equivalents and bank deposits were approximately RMB 3,771,999,000, up from RMB 3,267,276,000 as of December 31, 2023[62]. - The company had approximately RMB 10,035,352,000 in unused bank loan facilities as of June 30, 2024, indicating a strong liquidity position[65]. - The company’s total liabilities decreased to RMB 9,888,531,000, a rise of 5.97% from RMB 9,332,600,000 as of December 31, 2023[87]. - The company’s total equity attributable to owners increased to RMB 21,371,097,000, compared to RMB 21,160,135,000 as of December 31, 2023, reflecting a growth of 1.00%[87]. Human Resources and Corporate Governance - The company received the "2024 Outstanding Human Resource Management Award" from 51job and was recognized as a favorite employer brand among Chinese university students[24]. - The company is committed to building a comprehensive employer brand and enhancing talent management capabilities[38]. - The company maintained compliance with the corporate governance code throughout the reporting period[79].

Financial Performance - The total revenue for the six months ended June 30, 2024, was RMB 8,385,473, a decrease of 9.9% compared to RMB 9,302,957 for the same period in 2023[2]. - The revenue from traditional Chinese medicine production and operation decreased by 14.3% to RMB 754,277 from RMB 880,585[2]. - The revenue from Chinese medicine decoction pieces increased by 20.8% to RMB 1,576,914 from RMB 1,305,191[2]. - The gross profit for the period was RMB 4,061,254, down 14.6% from RMB 4,757,976 in the previous year[3]. - The net profit attributable to equity holders of the company was RMB 210,979, a decrease of 63.5% compared to RMB 578,742 in the same period last year[2]. - Basic earnings per share decreased to RMB 4.19 from RMB 11.49, reflecting a 63.5% decline[4]. - The company reported a decrease in operating profit to RMB 384,582 from RMB 814,046 in the previous year[3]. - The total profit for the period was RMB 214,143,000, after accounting for unallocated corporate expenses of RMB 3,227,000[13]. - The group reported a net profit of approximately RMB 214,143,000 for the six months ended June 30, 2024, a decrease of 65.3% from RMB 616,960,000 in the previous year, with a net profit margin of 2.6% compared to 6.6% last year[79]. Assets and Liabilities - The total assets as of June 30, 2024, were RMB 27,657,890, slightly down from RMB 27,735,748 as of December 31, 2023[5]. - The total liabilities as of June 30, 2024, were RMB 3,507,314, compared to RMB 3,799,130 as of December 31, 2023[6]. - The total assets of the group amounted to RMB 37,546,421,000, with the Yifang segment holding RMB 16,276,214,000 in assets[14]. - The total liabilities were reported at RMB 13,395,845,000, with the Yifang segment's liabilities at RMB 5,369,781,000[14]. - Current assets as of June 30, 2024, were approximately RMB 20,552,746,000, an increase from RMB 19,799,846,000 as of December 31, 2023, with a current ratio of 2.1[81]. - The group’s bank and other loans amounted to approximately RMB 4,009,484,000 as of June 30, 2024, up from RMB 3,034,020,000 as of December 31, 2023[82]. Revenue Breakdown - For the six months ended June 30, 2024, total revenue reached RMB 8,385,473,000, with a significant contribution from the Yifang segment at RMB 2,964,170,000[13]. - The Tianjiang segment reported a revenue of RMB 2,028,528,000, while the Tongjitang segment generated RMB 1,423,593,000[13]. - Revenue from Chinese herbal formula granules was RMB 3,479,735 thousand, down 29.4% from RMB 4,930,591 thousand year-on-year[19]. - The revenue contribution from traditional Chinese medicine formula granules was approximately RMB 3,479,735,000, accounting for 41.5% of total revenue[36]. - The revenue from TCM patent medicines grew by 18.9% to RMB 2,418,349,000, making up 28.8% of total revenue[68]. - The revenue from TCM health products was RMB 156,198,000, an increase of 2.9% compared to RMB 151,831,000[70]. Expenses and Costs - Research and development expenses for the period were RMB 267,925, down from RMB 313,614 in the previous year[3]. - Financial expenses for the six months ended June 30, 2024, were RMB 84,274 thousand, a decrease from RMB 105,438 thousand in the same period of 2023[24]. - The cost of goods sold for the six months ended June 30, 2024, was RMB 4,324,219,000, a decrease from RMB 4,544,981,000 in the same period of 2023, indicating a reduction of approximately 4.8%[25]. - Sales and distribution costs decreased by 13.6% to approximately RMB 2,752,658,000, down from RMB 3,186,920,000 in the previous year[74]. - Administrative expenses for the six months ended June 30, 2024, were approximately RMB 512,150,000, an increase of 10.2% compared to RMB 464,754,000 for the same period last year[75]. Research and Development - Research and development costs for the six months ended June 30, 2024, amounted to RMB 267,925,000, down from RMB 313,614,000 in the same period of 2023, indicating a decrease of approximately 14.6%[28]. - The company has successfully developed 5 new varieties through standardized production technology, with a total of 108 patents formed[40]. - The company completed research on 19 out of 31 new national standards for traditional Chinese medicine formula granules, accounting for 61%[49]. - The company is focusing on the integration of technology and innovation to strengthen its research and development capabilities[48]. Market and Strategy - The company continues to focus on expanding its market presence through various brands and healthcare solutions[11]. - The company aims to enhance its competitive advantage across the entire industry chain by focusing on sustainable development and resource integration[37]. - The company is actively expanding its market share and enhancing supply capabilities, maintaining the highest number of national and provincial standard approvals[44]. - The company will implement a major brand strategy for "Chinese Medicinal Materials," focusing on brand promotion and exploring international market opportunities[61]. Compliance and Governance - The company has implemented a comprehensive compliance management system, ensuring no major risk events occurred during the reporting period[54]. - The company aims to establish a robust compliance culture and risk identification mechanisms to enhance marketing compliance management and regulatory oversight[61]. - The audit committee reviewed the unaudited consolidated financial performance for the six months ending June 30, 2024, with no disagreements on accounting principles or practices[92]. Sustainability and Social Responsibility - The company is actively promoting green and low-carbon transformation, conducting 78 internal training sessions on energy conservation and environmental protection[53]. - The company was recognized as one of the "Top 100 ESG Listed Companies in China," ranking 25th overall and first among pharmaceutical companies[38].

Financial Performance - The company's revenue for the year ended December 31, 2023, was RMB 18.121 billion, an increase of 26.7% compared to the same period in 2022[14]. - Net profit for the same period was RMB 1.396 billion, representing a significant increase of 93.6% year-on-year[14]. - The compound annual growth rate (CAGR) for revenue from 2019 to 2023 was 6.06%[8]. - The gross profit margin for 2023 was 51.18%, reflecting a decrease from previous years[8]. - The total assets of the company as of December 31, 2023, were RMB 37.068 billion[8]. - The total liabilities stood at RMB 13.132 billion, with a debt-to-asset ratio of 35.43%[8]. - The group's revenue for the reporting period was approximately RMB 18,121,861,000, an increase of 26.7% compared to RMB 14,304,242,000 in the same period last year[22]. - The revenue from traditional Chinese medicine (TCM) formula granules was approximately RMB 9,108,382,000, accounting for 50.3% of total revenue, with a year-on-year growth of 18.1%[22]. - The revenue from TCM raw material production and operation was approximately RMB 1,855,534,000, representing 10.2% of total revenue, with a year-on-year increase of 45.8%[22]. - The revenue for Traditional Chinese Medicine (TCM) formula granules reached RMB 9,108,382,000, an increase of 18.1% from RMB 7,710,933,000 in the previous year, accounting for 50.3% of total revenue[63]. - The revenue for Chinese patent medicine reached RMB 3,994,333,000, a growth of 28.0% from RMB 3,121,636,000, contributing 22.0% to total revenue[65]. - The revenue for TCM health products was RMB 212,832,000, a significant increase of 58.6% from RMB 134,202,000, representing 1.2% of total revenue[67]. - The revenue for TCM clinics was RMB 139,412,000, a growth of 6.2% from RMB 131,324,000, accounting for 0.8% of total revenue[68]. - Other income increased by 26.1% to RMB 290,015,000, primarily due to government subsidies rising by 42.5% to RMB 216,911,000[70]. - For the 12 months ending December 31, 2023, the group's profit was approximately RMB 1,396,070,000, an increase of 93.6% compared to RMB 720,965,000 in the previous year[77]. - The net profit margin improved to 7.7%, up from 5.0% in the same period last year, reflecting a 2.7 percentage point increase[77]. - Basic earnings per share rose to RMB 25.52, a 68.1% increase from RMB 15.18 in the previous year[78]. Strategic Development - The company is focusing on high-quality development goals and implementing the "14th Five-Year" strategic plan[14]. - The company aims to build a sustainable and collaborative health industry chain in traditional Chinese medicine[14]. - The group aims to focus on the development of modern TCM and strategic emerging industries, enhancing the innovation chain, industry chain, and supply chain[17]. - The company aims to enhance its core competitiveness in areas such as collaboration, innovation, talent, branding, and marketing to drive high-quality development in the traditional Chinese medicine sector[52]. - The company plans to leverage opportunities in the traditional Chinese medicine industry while focusing on operational efficiency and management improvements[52]. - The company will continue to focus on the full industry chain development of traditional Chinese medicine, aiming for modernization and internationalization[52]. Research and Development - Research and development expenses reached RMB 686 million, a 12.06% increase year-on-year, accounting for 3.78% of operating revenue[34]. - The group has established multiple high-level research platforms, including 2 national enterprise technology centers and 15 provincial technology centers[34]. - The company has developed new varieties of traditional Chinese medicine, with "Guitong Jianye No. 1" and "Guitong Jianye No. 2" for Epimedium, and "Huacang No. 1" and "Huacang No. 2" for Atractylodes, receiving respective certification[35]. - The company has completed research on 36 out of 65 national drug standards for traditional Chinese medicine formula granules, accounting for 55.38%[36]. - A total of 248 patents were applied for during the reporting period, with 185 granted, including 100 invention patents and 82 utility model patents[36]. - The company has established 12 technical demonstration bases for various traditional Chinese medicine varieties, with 9 completed and passed inspection[35]. - The company has launched a digital quality traceability management platform for traditional Chinese medicine, achieving data visualization and product traceability[38]. Sustainability and ESG - The group has been recognized as a pioneer in ESG governance, being included in the "Top 100 ESG Listed Companies in China" and receiving the "ESG Governance Pioneer Award" in 2023[24]. - The group emphasizes sustainable development, enhancing quality management, and creating a healthy workplace environment for employees[24]. - The group plans to continue promoting energy management and green production to reduce environmental impact[24]. - The group has established a comprehensive environmental management and monitoring system, conducting quarterly wastewater monitoring and semi-annual boiler emissions monitoring[166]. - The group promotes a green production philosophy aimed at energy saving, consumption reduction, and pollution reduction[166]. - The group has invested in environmental upgrades, including converting fuel boilers to gas boilers and enhancing wastewater treatment facilities[166]. Corporate Governance - The board consists of both executive and non-executive directors, with recent changes due to retirement and reappointments[96]. - The company has adopted the Corporate Governance Code as its governance practices and is committed to continuous improvement in governance standards[133]. - The board has established several committees, including the Audit Committee, Remuneration and Assessment Committee, Nomination Committee, and Strategic Committee, to enhance corporate governance[143]. - The company has implemented a system for directors to seek independent professional advice at the company's expense when necessary[136]. - The board has a clear separation of roles between the chairman and the CEO to ensure balanced power distribution[136]. - The company has purchased appropriate liability insurance for directors and senior management, with annual reviews of coverage[136]. - The company emphasizes compliance and governance, with experienced legal professionals in key management positions[199]. Market Position and Expansion - The company has made substantial progress in the construction of traditional Chinese medicine material bases and the development of traditional Chinese medicine pieces[14]. - The market layout for proprietary Chinese medicine has been upgraded and expanded[14]. - The company has established 172 TCM raw material production bases across 22 provinces, covering 101 TCM varieties, with a total area exceeding 460,000 mu[25]. - The company is positioned to benefit from the relaxed market access measures for traditional Chinese medicine in the Guangdong-Macao cooperation zone[49]. - The company is actively pursuing market expansion and innovation in product development, particularly in the field of traditional Chinese medicine[198]. Financial Management - The company optimized its borrowing portfolio to accelerate financial circulation along the industrial chain, effectively reducing financing costs[42]. - The company implemented a standard manufacturing cost system for three core business areas: traditional Chinese medicine granules, Chinese patent medicines, and Chinese herbal pieces[42]. - The company has extended the deadline for fulfilling conditions related to its privatization proposal, indicating ongoing strategic adjustments[85]. - The company has a strong liquidity position, with approximately RMB 6,504,027,000 in unused bank loan facilities as of December 31, 2023[81]. - The company does not recommend the payment of a final dividend for the year ending December 31, 2023, compared to a dividend of RMB 0.0455 per share (equivalent to HKD 0.0518) for 2022[86][90]. Community Engagement - The company made charitable donations totaling approximately RMB 14,455,000 during the reporting period[101]. - The company is enhancing community health service standards to improve the service capabilities of traditional Chinese medicine facilities[46]. Shareholder Communication - The company is committed to regular and proactive communication with shareholders and investors, ensuring timely disclosure of significant developments[181]. - The board reviewed the effectiveness of the shareholder communication policy and deemed it sufficient for the year ending December 31, 2023[181].

Financial Performance - The total revenue for the year ended December 31, 2023, was RMB 18.12 billion, an increase of 26.7% compared to RMB 14.30 billion in 2022[2]. - The net profit for the same period was RMB 1.40 billion, representing a significant increase of 93.6% from RMB 720.97 million in 2022[2]. - The gross profit margin improved to 51.1%, up from 50.3% in the previous year[2]. - The basic earnings per share increased to RMB 25.52, up 68.1% from RMB 15.18 in 2022[2]. - The total comprehensive income for 2023 was RMB 1,393,071, compared to RMB 730,535 in 2022, showing a robust growth in overall financial performance[46]. - The group’s profit for the 12 months ending December 31, 2023, was approximately RMB 1,396,070,000, an increase of 93.6% compared to RMB 720,965,000 in the same period last year[97]. - The net profit margin improved to 7.7%, up 2.7 percentage points from 5.0% in the previous year[97]. - The total revenue for the year 2023 reached RMB 18,121,861, an increase of 26.5% compared to RMB 14,304,242 in 2022[45]. Revenue Breakdown - The revenue breakdown shows that the Chinese medicine formula granules accounted for 50.3% of total revenue, with a year-on-year growth of 18.1%, while traditional Chinese medicine pieces grew by 45.4%[7]. - The revenue from traditional Chinese medicine pieces reached RMB 2.81 billion, reflecting a growth of 45.4% compared to the previous year[2]. - The production and operation of traditional Chinese medicinal materials generated revenue of RMB 1.86 billion, a 45.8% increase year-on-year[2]. - The revenue from TCM formula granules was RMB 9,108,382,000, an 18.1% increase from RMB 7,710,933,000, representing 50.3% of total revenue[39]. - The revenue from TCM patent medicines was RMB 3,994,333,000, a growth of 28.0% from RMB 3,121,636,000, contributing 22.0% to total revenue[41]. - The revenue from TCM health products reached RMB 212,832,000, a significant increase of 58.6% from RMB 134,202,000, accounting for 1.2% of total revenue[43]. Strategic Focus and Development - The company aims to focus on modern traditional Chinese medicine and strategic emerging industries to enhance its innovation chain and supply chain[5]. - The company is committed to achieving the goals set in the 14th Five-Year Plan, focusing on high-quality development in the traditional Chinese medicine sector[5]. - The company plans to continue promoting sustainable development and improving corporate governance to strengthen its competitive edge[4]. - The company is focusing on enhancing its quality control systems and optimizing inventory structures to improve production efficiency in the Chinese medicine formula granules sector[11]. - The company is committed to accelerating the construction of a comprehensive traditional Chinese medicine health product industry system and optimizing its product line[31]. Research and Development - The company invested RMB 686 million in R&D during the reporting period, a 12.06% increase year-on-year, representing 3.78% of total revenue[17]. - The company is focused on research and development of traditional Chinese medicine resources, processing standards, and innovative drugs to strengthen its technological capabilities[32]. - The company has established 12 technical demonstration bases for TCM materials, with 9 completed and passed evaluation[17]. - The company applied for 248 patents during the reporting period, with 185 granted, including 100 invention patents and 82 utility model patents, supporting high-quality development in the traditional Chinese medicine industry[19]. Market and Sales Growth - The company developed over 1,800 medical terminal customers for its traditional Chinese medicine pieces, leading to significant sales growth and achieving a historical high in performance[10]. - The company’s traditional Chinese medicine health products revenue grew by 58.6% year-on-year, contributing to the overall revenue increase[7]. - Sales of 10 TCM products exceeded RMB 100 million, all achieving double-digit growth, with several products seeing sales growth over 50% year-on-year[12]. - The company has established 45 intelligent distribution centers across 13 provinces, enhancing its sales capabilities for traditional Chinese medicine pieces[10]. Corporate Governance and Compliance - The company has adhered to the corporate governance code throughout the year ending December 31, 2023[109]. - The independent auditor has reviewed the preliminary performance announcement, confirming consistency with the group's consolidated financial statements for the year ending December 31, 2023[111]. - The audit committee consists of four independent non-executive directors, with Mr. Xie Rong serving as the chairman, overseeing financial reporting and risk management[112]. Sustainability and ESG - The company has been recognized in the top 100 ESG listed companies in China, highlighting its commitment to sustainable development[8]. - The company organized safety production training activities with over 30,000 participants, achieving zero major safety incidents throughout the year[23]. - Nearly 300 quality improvement and efficiency enhancement projects were initiated during the reporting period, generating economic benefits exceeding 100 million yuan[25]. Future Outlook - The company plans to enhance its strategic layout and expand its traditional Chinese medicine services, contributing to future growth[44]. - The company aims to promote the internationalization of traditional Chinese medicine standards and enhance overseas certification efforts[32]. - The company is expanding its TCM health service network in major cities, including projects in Shenzhen and Shanghai[16].

2月21日晚间，中国中药发布公告，国药集团建议透过计划安排的方式，以每股4.6港元现金的价格将中 国中药私有化。国药集团的报价较中国中药最新收盘价溢价34.11%，国药集团私有化建议的总代价约 为154.5亿港元。中国中药已向香港联交所申请自2月22日上午九时正起恢复股份买卖。 这次是真的！3年3次"谣言" 据悉，关于中国中药私有化的传闻，自2021年以来已累计三次传出此类消息，声称国药集团将私有化中 国中药。而每次私有化消息在坊间盛传后，中国中药的股价就会高涨一波。 2021年1月27日，市场传出，国药集团牵头的财团计划以每股至少5.10港元的价格私有化中国中药，这 一价格较中国中药过去一个月的平均股价3.83港元溢价约33%，中国中药估值至少达到33亿美元。消息 传出后，中国中药股价当日上涨7.03%。不过该私有化事件在当时并无下文。 2022年12月7日，有消息称，国药集团考虑再次尝试将旗下中国中药私有化，估值约40亿美元。知情人 士称，国药集团与顾问正在商讨潜在私有化的新提议。不过，中国中药在第二天就发布公告辟谣，"本 公司从国药香港获悉，截至本公告日期，国药集团经初步研究，不对本公司进行私有化相关安 ...

Financial Performance - The company's revenue for the six months ended June 30, 2023, was approximately RMB 9,302,957,000, an increase of 57.4% compared to RMB 5,911,638,000 in the same period last year[8]. - The gross profit was approximately RMB 4,757,976,000, up 61.2% from RMB 2,951,871,000 in the previous year, with a gross margin of 51.1%, an increase of 1.2 percentage points year-on-year[8]. - The net profit attributable to equity holders rose by 39.9% to approximately RMB 578,742,000, up from RMB 413,588,000 for the six months ended June 30, 2022[69]. - Basic earnings per share for the six months ended June 30, 2023, increased by 40.0% to RMB 0.1149, compared to RMB 0.0821 for the same period last year[69]. - Total operating profit for the period was RMB 616,960,000, a 46.4% increase from RMB 421,535,000, with a net profit margin of 6.6%, down 0.5 percentage points from the previous year[68]. Revenue Breakdown - The revenue from traditional Chinese medicine formula granules was approximately RMB 4,930,591,000, representing a year-on-year growth of 78.5% and accounting for 53.0% of total revenue[8]. - The revenue from traditional Chinese medicine health products increased by 95.0% year-on-year, contributing approximately RMB 94,243,000 to total revenue[8]. - The revenue from traditional Chinese medicine pieces was approximately RMB 1,305,191,000, reflecting a year-on-year increase of 55.1%[8]. - The revenue from traditional Chinese medicine (TCM) production and operation reached RMB 880,585,000, a growth of 104.2% year-on-year, contributing 9.5% to total revenue[44]. - Revenue from the Chinese mainland market was RMB 9,256,673,000, a 57.5% increase compared to RMB 5,864,389,000 in the previous year[119]. Research and Development - The company’s research and development capabilities in traditional Chinese medicine have significantly improved, ranking third in the "2023 China Traditional Chinese Medicine R&D Strength Ranking"[11]. - The group completed research on 48 national drug standards for traditional Chinese medicine formula granules, with 27 of them (56.25%) developed by the group[22]. - The group applied for 95 patents during the reporting period, including 3 PCT patents and 56 invention patents, with 48 patents granted[22]. - Research and development expenses were RMB 313,614,000, a slight decrease of 1.2% from RMB 317,534,000, focusing on quality standards and new drug development[64]. Operational Developments - The group completed a total of 523 product registrations for TCM formula granules, maintaining the industry’s leading position[16]. - The intelligent digital production workshop for TCM formula granules has transitioned from traditional to automated production, improving efficiency and competitiveness[16]. - The group is actively participating in the first national inter-provincial alliance procurement for TCM decoction pieces, showcasing its advantages in supply capabilities and quality control[13]. - The group has accelerated the development of medical terminals, opening over 1,000 new secondary and higher medical institutions during the reporting period[17]. Market and Industry Trends - The demand for traditional Chinese medicine is steadily increasing, with the industry showing positive development momentum amid complex market conditions[39]. - The State Council's implementation plan for major projects in the revitalization and development of traditional Chinese medicine aims to establish a high-quality service system by 2025, enhancing the quality and international influence of traditional Chinese medicine[36]. - The "14th Five-Year Plan" for the promotion of traditional Chinese medicine culture aims to increase public health literacy in traditional Chinese medicine to approximately 25% by 2025[38]. Financial Position - Current assets as of June 30, 2023, amounted to approximately RMB 20,956,635,000, an increase from RMB 17,966,676,000 as of December 31, 2022[70]. - The total liabilities increased to RMB 15,918,085,000 from RMB 13,673,339,000, marking a rise of about 16.4%[96]. - The company's inventory decreased to RMB 5,625,330,000 from RMB 6,039,880,000, a decline of approximately 6.9%[95]. - The company's interest-bearing bank and other borrowings rose to RMB 2,823,272,000 from RMB 1,255,268,000, an increase of about 125.0%[95]. Corporate Governance and Compliance - The company maintained compliance with the corporate governance code throughout the reporting period[87]. - The company established a compliance management system, enhancing legal risk prevention and ensuring sustainable development[33]. - The company did not recommend the distribution of an interim dividend for the six months ended June 30, 2023[80]. Shareholder Information - Major shareholder, Guoyao Hong Kong, holds approximately 32.46% of the issued shares, with 1,634,705,642 shares[83]. - Ping An Life Insurance Company holds approximately 12.00% of the issued shares, with 604,296,222 shares[84].