Core Viewpoint - The company Biostime (00926) announced a mid-term dividend of HKD 0.15 per share, to be distributed on September 12, 2025 [1] Company Summary - Biostime will distribute a mid-term dividend of HKD 0.15 per share [1]

EF001 免責聲明 | 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因 | | | --- | --- | | 公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 | | | 股票發行人現金股息公告 | | | 發行人名稱 | 碧生源控股有限公司 | | 股份代號 | 00926 | | 多櫃檯股份代號及貨幣 | 不適用 | | 相關股份代號及名稱 | 不適用 | | 公告標題 | 中期股息(截至2025年6月30日止6個月) | | 公告日期 | 2025年8月5日 | | 公告狀態 | 新公告 | | 股息信息 | | | 股息類型 | 中期（半年期） | | 股息性質 | 普通股息 | | 財政年末 | 2025年12月31日 | | 宣派股息的報告期末 | 2025年6月30日 | | 宣派股息 | 每 股 0.15 HKD | | 股東批准日期 | 2025年8月25日 | | 香港過戶登記處相關信息 | | | 派息金額及公司預設派發貨幣 | 每 股 0.15 HKD | | 匯率 | 1 ...

本月底法定/註冊股本總額： USD 49,999.98 FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 碧生源控股有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00926 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 150,000,000 | USD | 0.0003333332 | USD | | 49,999.98 | | 增加 / 減少 (-) | | | 0 | | | USD | | 0 | | 本月底結存 | | | 150,000,000 | USD | 0.0003333332 | U ...

Core Insights - The company Biyuan has gained popularity in the functional tea market with its "Blue Hat" certified products, Changrun Tea and Changjing Tea, which effectively combine tea with traditional Chinese herbal medicine [1][2] - Biyuan aims to modernize the traditional Chinese tea industry by utilizing industrialized methods to standardize traditional tea formulas, addressing the long-standing issue of "having categories but no brands" in the industry [1][2] - The company has initiated a partner operation mechanism in 2023 to streamline its organizational structure, ensuring efficient communication between frontline and headquarters, which has led to a significant recovery in performance [2] Company Strategy - Biyuan's brand name signifies "the source of green life," aligning with its focus on green, natural, and healthy products, while also aiming to establish long-term connections with consumers [1] - The company has implemented a flat organizational structure, allowing operational staff to become shareholders, linking their income directly to sales performance [2] - Biyuan has established a strict standardized system for product development and production, ensuring all raw materials comply with national health food regulations and maintaining real-time data connectivity with the Beijing Drug Administration [2] Cultural and Industrial Impact - Biyuan is advocating for the recognition of "Oriental Tea Art" as an intangible cultural heritage, positioning itself at the forefront of the tea industrialization movement [3] - The company combines traditional culture with innovative industrial practices through the use of bagged tea, effectively preserving and promoting Chinese heritage [3]

Core Insights - The core achievement of the company is reflected in its 2024 financial report, which shows a revenue of 484 million yuan and a net profit of 14.804 million yuan, marking a turnaround from losses to profitability [1] - The company has developed a compelling communication system that resonates with consumers by addressing their pain points, humor, emotional stories, and encouraging sharing, effectively transforming health tea into a solution for modern health concerns [6] Group 1: Pain Points - Health issues have become a significant concern for consumers due to modern lifestyle pressures, and health tea serves as a solution to alleviate these concerns [2] - The company positions its health tea as a "gentle health guardian," with specific products targeting urban consumers' sub-health issues, such as constipation and weight management [2] Group 2: Humor - The brand utilizes humor to make health maintenance more approachable, using engaging formats like comics and short videos to integrate health tea into everyday scenarios [3] - This strategy reduces psychological barriers and enhances product recall, particularly among younger consumers [3] Group 3: Emotional Connection - The essence of health tea extends beyond being a beverage; it serves as a medium for emotional connection, tapping into themes of filial piety and friendship [4] - By sharing relatable stories, the brand fosters a deeper trust and emotional resonance with consumers, positioning the product as a symbol of care for loved ones [4] Group 4: Sharing Ecosystem - The company encourages consumers to share their experiences, transforming individual testimonials into collective brand advocacy [5] - By leveraging social media and e-commerce platforms, the brand amplifies its reach and enhances consumer engagement through user-generated content [5] Group 5: Marketing Strategy - The marketing success of the company lies in its ability to address emotional needs through a four-step approach: identifying pain points, breaking barriers with humor, building connections through emotional stories, and promoting sharing [6] - This strategy has elevated health tea from a functional product to a symbol of a healthy lifestyle, contributing to sustained growth in health value [6]

Core Viewpoint - The company, Biyuan, positions itself as a leader in the herbal health tea segment by focusing on standardized product forms, quality control, and pricing strategies to meet consumer demands for health and convenience [1][9]. Group 1: Standardized Product Form - Biyuan has innovated the traditional tea bag model by introducing a dual-chamber tea bag design that eliminates metal contamination risks and uses eco-friendly materials [3]. - The company employs cold brew freeze-drying technology to quickly lock in nutrients, allowing for a convenient tea experience that aligns with modern urban lifestyles [3]. - Biyuan's product matrix combines traditional Chinese medicine with modern nutritional science, offering functional teas like Changjing Tea and Changrun Tea that cater to diverse health needs [2][3]. Group 2: Standardized Quality - Biyuan emphasizes quality as the foundation of its business, implementing a standardized quality management system throughout its supply chain [4]. - The company conducts thorough supplier assessments and maintains direct relationships with tea farmers in premium tea-producing regions to ensure raw material purity [4]. - Biyuan has invested significantly in a central testing laboratory to ensure that all raw materials meet strict quality standards, achieving a 100% product pass rate [4]. Group 3: Standardized Pricing - Biyuan adopts a standardized pricing strategy to make high-quality health teas accessible to a broader consumer base, with core products priced in the tens of yuan range [7]. - The company utilizes a multi-channel sales approach, including traditional retail, e-commerce, and new retail platforms, to maintain consistent pricing and enhance market penetration [8]. - Biyuan's commitment to affordable health options aligns with the growing demand for value among younger consumers, contributing to increased market share in this demographic [8]. Conclusion - Biyuan's three-pronged standardized approach—product innovation, quality assurance, and pricing strategy—establishes its competitive edge in the herbal tea market, promoting a shift towards a more regulated and health-conscious industry [9].

Industry Overview - The establishment of the Tea Industry and Health Branch of the China Health Care Association marks a significant milestone in the integration of the tea industry with health, providing a professional platform for development [1] - The tea industry is transitioning from a traditional beverage to a health solution, aligning with modern health concepts and appealing to younger consumers [1] Health Benefits of Tea - Tea has been recognized for its health benefits, containing natural components such as polyphenols and proteins that support its health properties [2] - Research indicates that tea polyphenols possess strong antioxidant capabilities and can prevent and inhibit various organ tumors [2] Innovative Applications - The combination of traditional Chinese medicine and tea has led to the development of new health solutions, such as herbal teas designed for specific health conditions [3] - Over 110 types of medicinal herbs have been identified for innovative "herb + tea" combinations, expanding the health tea category [3] Cultural and Emotional Value - The cultural aspects of tea, including its ritualistic preparation and consumption, contribute to its therapeutic value, aligning with modern consumers' desire for emotional well-being [3] Company Strategy - The company Bi Sheng Yuan has evolved from a "functional tea" provider to a "health management expert," adapting to consumer demands for comprehensive health solutions [4] - Bi Sheng Yuan has developed a full product matrix covering health foods, regular foods, and pharmaceuticals, catering to diverse consumer needs [5] Marketing and Distribution - The company has embraced multi-channel marketing strategies, leveraging both traditional retail and e-commerce platforms to reach a broader audience [6] - Bi Sheng Yuan has initiated a partnership model to enhance its marketing system, fostering sustainable growth [6] Future Opportunities - The tea industry is poised for unprecedented growth, driven by consumer demand for health and national trends, supported by favorable policies and technological advancements [7] - Bi Sheng Yuan aims to modernize the traditional tea industry through brand upgrades, product innovation, and marketing transformations, exploring new pathways for health and youthfulness [7]

Financial Performance - The company achieved revenue of RMB 484.3 million for the year ended December 31, 2024, a decrease of 10.8% compared to RMB 542.9 million in 2023[15]. - The total comprehensive income for 2024 was RMB 16.8 million, recovering from a total comprehensive loss of RMB 358.6 million in 2023[15]. - The revenue from the four health teas in 2024 was RMB 256.6 million, down 11.3% from RMB 289.4 million in 2023, primarily due to strategic adjustments and a reduction in settlement prices[89]. - The revenue from weight loss products in 2024 was RMB 148.0 million, a decrease of 8.5% from RMB 161.8 million in 2023, attributed to a decline in market share of the orlistat product[89]. - The gross profit margin for 2024 increased to 67.3%, up 3.5 percentage points from 63.8% in 2023, due to optimization of less competitive products and a decrease in procurement costs for weight loss products[90]. - The sales cost for 2024 was RMB 158.5 million, a decrease of 19.4% from RMB 196.7 million in 2023[90]. - The other income for 2024 was RMB 11.8 million, slightly up from RMB 11.0 million in 2023, mainly from interest income and government subsidies[91]. - In 2024, the company's sales and marketing expenses amounted to RMB 199.4 million, a decrease of 37.8% from RMB 320.7 million in 2023, representing 41.2% of total revenue[92]. - Employee benefits expenses in 2024 decreased by RMB 81.9 million compared to 2023, primarily due to strategic adjustments in the operating model and a reduction in sales personnel[93]. - Advertising expenses in 2024 decreased by RMB 41.2 million from 2023, mainly due to reduced advertising spending[94]. - Administrative expenses for 2024 were RMB 89.5 million, down 41.5% from RMB 153.1 million in 2023, accounting for 18.5% of total revenue[97]. - Research and development costs in 2024 were RMB 29.4 million, a decrease of 15.8% from RMB 34.9 million in 2023, representing 6.1% of total revenue[101]. - The company recorded a total comprehensive income of RMB 16.8 million in 2024, a significant improvement from a comprehensive loss of RMB 358.6 million in 2023[105]. - The net cash inflow from operating activities for continuing operations in 2024 was RMB 10.5 million, compared to a cash outflow of RMB 33.0 million in 2023[107]. - The net cash outflow from financing activities in 2024 was RMB 103.8 million, primarily due to dividend distributions to shareholders[107]. - The company's other net income in 2024 was RMB 6.4 million, up from RMB 0.7 million in 2023, including investment income of RMB 2.7 million[102]. - The share of profit from investments accounted for using the equity method was RMB 5.1 million in 2024, compared to RMB 1.0 million in 2023[103]. - As of December 31, 2024, the company's financial assets measured at fair value through profit or loss amounted to RMB 794 million, a decrease from RMB 901 million as of December 31, 2023[108]. - The company holds approximately RMB 698 million in receivables measured at amortized cost through the fund, along with restricted cash and cash equivalents of about RMB 135 million[109]. - The group's cash and cash equivalents, including bank balances and deposits, totaled RMB 1,478 million as of December 31, 2024, down from RMB 2,885 million a year earlier[110]. - The company's capital expenditures for 2024 were RMB 50 million, a decrease from RMB 68 million in 2023[114]. - The total inventory as of December 31, 2024, was RMB 264.11 million, an increase from RMB 235.69 million in 2023, with inventory turnover days reduced to 58 days from 123 days[116]. - The company's debt-to-asset ratio as of December 31, 2024, was 15.2%, down from 21.4% a year prior[121]. - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures in 2024[118]. - The company has no significant contingent liabilities or guarantees as of December 31, 2024[122]. - The company has not approved any major investments or capital asset purchases as of the report date[120]. Operational Efficiency and Strategy - The company implemented a partnership mechanism in September 2023, which was fully rolled out in 2024 across e-commerce and OTC business segments, enhancing operational efficiency[16]. - The company expanded its offline sales network to nearly 300,000 non-prescription drug stores across 31 provinces, regions, and municipalities in China by the end of 2024[6]. - The company operates 63 online stores across 18 e-commerce platforms, actively embracing new retail formats such as O2O and B2C[6]. - The company aims to continue innovating and providing high-quality health products and services, positioning itself as a leader in the health industry[7]. - The company faced multiple challenges in 2024, including external environmental changes and insufficient domestic demand, but management responded proactively to achieve satisfactory operational results[15]. - The company will enhance its partner mechanism starting September 2024, focusing on profit-oriented incentives to improve long-term market development awareness among partners[17]. - By 2025, the company aims to optimize its product and business layout while continuing to invest in R&D to drive product innovation and enhance consumer experience[17]. - The company plans to strengthen strategic partnerships with top 100 national chains and diversify marketing activities to improve inventory turnover rates[17]. - The company will focus on profitability in its e-commerce operations, aiming to reduce operational and logistics costs while exploring new business models[17]. - The company will implement a performance management system and enhance employee training to improve operational efficiency and product supply assurance[18]. - The company is committed to adapting to market changes by modernizing the Bishi Yuan brand through social media and content marketing strategies[17]. - The company will actively explore new e-commerce models such as O2O, B2C, live streaming, and interest-based e-commerce to meet changing consumer purchasing scenarios[17]. - The company has streamlined its agency product structure, significantly improving operational quality and sales performance in key product categories[40]. - The company successfully upgraded and transformed its health products, expanding their market for liver protection, sleep aid, and immune enhancement[62]. - The company applied for 2 invention patents and received 3 invention patents and 1 utility model patent, enhancing the technological content of its products[62]. - The company implemented strict quality control measures, combining manual and equipment monitoring to ensure product quality parameters are met[67]. - The BI system underwent comprehensive optimization and performance upgrades to enhance data security and provide precise real-time analysis[67]. - The company aims to enhance its online and offline operations by leveraging member resources and deepening cooperation with offline businesses[78]. - The company is expanding its presence on new retail platforms like Douyin and Kuaishou, aiming to increase market share and improve advertising efficiency[81]. - The company is committed to optimizing its product and channel strategies to strengthen brand influence and market position, particularly through content marketing and collaboration with media platforms[82]. Innovation and R&D - The company holds 25 health food approvals and 117 patents, including 21 invention patents, demonstrating its commitment to innovation[6]. - The R&D department published two academic articles in core journals by July 2024 to support the registration of new weight loss products[65]. - In 2024, the company accelerated the development of new health food products in response to new industry regulations, enhancing its innovation capabilities[61]. - The company aims to focus on "weight management" and "gastrointestinal health" while expanding its product categories to include OTC drugs, health foods, and regular foods[76]. - The company plans to optimize product structure and innovate marketing models to achieve high-quality development by 2025[76]. - The company is committed to modern production management and continuous improvement of production processes to ensure high-quality products[66]. Market Trends and Consumer Behavior - The company forecasts that the consumer health product industry in China is expected to reach $62.401 billion by 2025, with a growth rate exceeding 6%[32]. - In China, 62% of consumers prioritize health in their daily lives, significantly higher than the US (41%) and the UK (29%)[34]. - 74% of Chinese consumers indicated they would increase health-related spending if overall consumption levels decline[34]. - The global health and wellness food market is projected to grow by $627.6 billion from 2025 to 2029, with a CAGR of 9.8%[34]. - The company ranks among the top sellers in health food and weight loss categories on Tmall and JD platforms[39]. - The e-commerce business achieved its best operational results since inception by optimizing product structure and marketing strategies[41]. - During the Double Eleven sales event, the Pinduoduo platform saw daily sales exceed 50,000 units for the main product, Fibrous Tea[45]. - The flagship store's monthly sales increased from over RMB 800,000 in September-October to over RMB 1 million in November-December[45]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes a systematic approach to ESG management, with a top-down strategy involving the board for decision-making and risk assessment[144]. - The ESG report is prepared in accordance with the Hong Kong Stock Exchange's guidelines, ensuring compliance and transparency in environmental, social, and governance matters[140]. - The board reviews and approves the ESG report annually to ensure it accurately reflects significant ESG issues and their impact on sustainable development[145]. - The company has established effective communication with stakeholders to understand their needs and concerns regarding ESG factors[145]. - The management team is committed to collecting relevant ESG data and reporting on performance regularly to ensure accountability[144]. - The company has a dedicated ESG leadership team, led by the CEO, to oversee the management and effectiveness of ESG strategies[144]. - The report includes quantifiable data to reflect the company's performance in environmental and social indicators, adhering to the principle of materiality[142]. - The company emphasizes the importance of stakeholder engagement for sustainable development, utilizing various communication channels to gather feedback and expectations[146]. - Key environmental, social, and governance (ESG) issues identified include air pollutant and greenhouse gas emissions management, supply chain management, and employee treatment[153]. - The company has implemented a "lean production" plan to optimize production processes, upgrade equipment, and improve energy efficiency, contributing to sustainable business development[157]. - No significant violations of environmental laws and regulations were reported during the reporting period, ensuring compliance with relevant legislation[158]. - The company actively promotes environmental awareness among employees and adheres to environmental laws and regulations[157]. - Key performance indicators related to emissions include measures to reduce industrial waste gas and improve overall air quality[160]. - The company's nitrogen oxide emissions decreased from 112.67 kg in 2023 to 108.09 kg in 2024, representing a reduction of approximately 4.6%[161]. - The total greenhouse gas emissions (Scope 1) reduced from 356.37 tons CO2 equivalent in 2023 to 331.69 tons CO2 equivalent in 2024, a decrease of about 6.9%[163]. - The total greenhouse gas emissions (Scope 2) decreased from 1,331.90 tons CO2 equivalent in 2023 to 1,224.83 tons CO2 equivalent in 2024, reflecting a reduction of approximately 8.0%[163]. - The total hazardous waste emissions dropped significantly from 10.35 tons in 2023 to 5.84 tons in 2024, a decrease of about 43.5%[169]. - The total electricity consumption decreased from 1,493,900 kWh in 2023 to 1,365,900 kWh in 2024, representing a reduction of approximately 8.6%[176]. - The total natural gas consumption reduced from 60,252 m³ in 2023 to 57,802 m³ in 2024, a decrease of about 4.1%[176]. - The total fuel consumption decreased from 38,118 liters in 2023 to 30,000 liters in 2024, reflecting a reduction of approximately 21.4%[176]. - The density of hazardous waste emissions per million RMB revenue improved from 0.02 tons in 2023 to 0.01 tons in 2024, indicating enhanced efficiency[169]. - The company implemented measures to reduce waste generation and promote recycling, including encouraging employees to minimize food waste and adopt paperless practices[170]. - The company aims to enhance resource efficiency and reduce ecological footprint through its "4R" strategy: Replace, Reuse, Reduce, and Recycle[172]. - Water consumption decreased from 15,068 tons in 2023 to 8,329 tons in 2024, a reduction of approximately 44.3%[179]. - Water consumption density improved from 27.75 tons per million revenue in 2023 to 17.20 tons per million revenue in 2024, a decrease of approximately 38.2%[179]. - Packaging materials consumed increased from 585 tons in 2023 to 710 tons in 2024, an increase of approximately 21.4%[180]. - Packaging material density improved from 1.08 tons per million revenue in 2023 to 1.47 tons per million revenue in 2024, an increase of approximately 36.1%[180]. - The company achieved its environmental targets, including a 3% reduction in air emissions density and greenhouse gas emissions density compared to 2021[182]. - The company has implemented policies to reduce environmental impact, including compliance with Chinese environmental laws and monitoring air pollutants[184]. - The company is committed to energy conservation, aiming for a 2% reduction in electricity and natural gas consumption density by 2024 compared to 2021[182]. - The company has established flexible work arrangements and preventive measures to mitigate climate-related operational risks[189]. - The company regularly monitors climate-related trends and regulations to manage potential legal and reputational risks[190]. - The company has set a three-year target plan for environmental impact reduction, with specific goals for waste and resource management[181]. Employee Management and Training - As of December 31, 2024, the company had 128 employees in mainland China and Hong Kong, down from 179 employees as of December 31, 2023[127]. - Employee costs, including director remuneration, amounted to RMB 56.9 million for the year ending December 31, 2024, a decrease from RMB 210.9 million in 2023[127]. - The company emphasizes the recruitment, motivation, and retention of suitable talent, investing significantly in continuous education and training programs for employees[127]. - The company appointed Mr. Feng Bing as an independent non-executive director starting October 2023, who has over 31 years of corporate management and consulting experience[133]. - Mr. Zhao Yihong serves as the CEO of the group, with a background detailed in the board introduction[134]. - The group has a strong management team with extensive experience in various sectors, including pharmaceuticals and media, enhancing operational efficiency[136][137]. - The company provides competitive compensation, including basic salary, performance pay, and bonuses, linked to employee performance[194]. - The company has a standard working time of 7.5 hours per day and offers various types of leave, including annual leave and maternity leave[193]. - There were no fatalities or work-related injuries reported in the past three years, maintaining a 0% fatality rate[199]. - The company emphasizes a balanced work-life environment and adheres to relevant labor laws and regulations[193]. - All employees receive an employee handbook detailing employment terms, compensation, and policies[196]. - The company has implemented a recruitment management system to ensure fair hiring practices[196]. - Regular internal safety training is conducted to enhance employee awareness of occupational safety[198]. - The company encourages employee participation in training programs to improve skills and career development[199]. - Percentage of trained employees: Male 69.62%, Female 30.38%[200]. - Percentage of trained employees by type: Senior Management 7.59%, Middle Management 12.66%, Junior Employees 79.75%[200]. - Average training hours per employee: Male 232 hours, Female 166 hours[200]. - Average training hours by employee type: Senior Management 300 hours, Middle Management 98 hours, Junior Employees 76 hours[200].

Financial Performance - For the year ending December 31, 2024, the group's revenue from continuing operations was RMB 484.3 million, a decrease of 10.8% compared to RMB 542.9 million in 2023[3]. - The gross profit from continuing operations for 2024 was RMB 325.8 million, down 5.9% from RMB 346.2 million in 2023, with a gross profit margin of 67.3%, an increase of 3.5 percentage points from 63.8% in 2023[3]. - Operating expenses for continuing operations totaled RMB 318.2 million in 2024, a significant decrease of 37.4% from RMB 508.7 million in 2023[3]. - The total comprehensive income for 2024 was RMB 16.8 million, a turnaround from a comprehensive loss of RMB 358.6 million in 2023[4]. - Basic and diluted earnings per share attributable to the company's owners for 2024 were RMB 0.12, compared to a loss of RMB 2.45 per share in 2023[4]. - The operating profit for 2024 was RMB 21.6 million, a significant improvement from an operating loss of RMB 150.3 million in 2023[6]. - The company recorded a net profit from continuing operations of RMB 14.8 million in 2024, compared to a loss of RMB 159.1 million in 2023[6]. - The company achieved a net profit attributable to owners of RMB 16.8 million in 2024, compared to a loss of RMB 300.4 million in 2023[8]. - The total comprehensive income for the group was RMB 16.8 million in 2024, compared to a total comprehensive loss of RMB 358.6 million in 2023[64]. Revenue and Segment Performance - Revenue from the tea products segment decreased from RMB 371,119 thousand in 2023 to RMB 326,183 thousand in 2024, a decline of approximately 12.1%[22]. - Revenue from the weight loss and other pharmaceuticals segment decreased from RMB 171,757 thousand in 2023 to RMB 158,118 thousand in 2024, a decline of about 7.9%[22]. - Total revenue for the year ended December 31, 2024, was RMB 484,301,000, a decrease from RMB 542,876,000 in 2023, representing a decline of approximately 10.8%[24]. - The revenue from the core health tea products in 2024 was RMB 256.6 million, down 11.3% from RMB 289.4 million in 2023, primarily due to strategic adjustments and a reduction in settlement prices[124]. Assets and Liabilities - Total assets decreased from RMB 704,943 thousand in 2023 to RMB 560,693 thousand in 2024, a decline of approximately 20.4%[9]. - Non-current assets increased from RMB 277,073 thousand in 2023 to RMB 325,331 thousand in 2024, an increase of about 17.4%[9]. - Cash and cash equivalents decreased from RMB 169,082 thousand in 2023 to RMB 134,155 thousand in 2024, a decrease of approximately 20.6%[9]. - Trade receivables decreased significantly from RMB 48,195 thousand in 2023 to RMB 20,592 thousand in 2024, a decline of about 57.3%[9]. - The total liabilities decreased from RMB 150,973 thousand in 2023 to RMB 85,317 thousand in 2024, a decline of about 43.4%[10]. - The debt-to-asset ratio as of December 31, 2024, was 15.2%, down from 21.4% in 2023[152]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.10 per share, totaling approximately HKD 12,227,000, subject to shareholder approval[5]. - The company declared an interim dividend of HKD 0.9 per share, totaling approximately RMB 99,624,000[53]. - The proposed final dividend for the year ending December 31, 2024, is HKD 0.10 per share, totaling approximately HKD 12,227,000, subject to shareholder approval[158]. Operational Efficiency and Cost Management - The company has streamlined personnel in headquarters and production departments to improve efficiency and reduce costs[65]. - The total administrative expenses for the year ended December 31, 2024, were RMB 89,512,000, compared to RMB 153,050,000 in 2023, reflecting a decrease of approximately 41.5%[24]. - Sales and marketing expenses for 2024 were RMB 199.4 million, a significant decrease of 37.8% from RMB 320.7 million in 2023[128]. - The employee costs for the year ending December 31, 2024, were RMB 56.9 million, a decrease of 73% from RMB 210.9 million in 2023[157]. Research and Development - Research and development costs for the year ended December 31, 2024, totaled RMB 29,359,000, compared to RMB 34,922,000 in 2023, indicating a reduction of approximately 16.1%[24]. - The company plans to continue enhancing product development and innovation, focusing on new products and channels by 2025[121]. - The company aims to increase R&D investment to drive product innovation and improve consumer experience, particularly in online shopping and after-sales service[66]. Market Strategy and Future Outlook - The company plans to explore new e-commerce models such as O2O, B2C, live streaming, and short video commerce to adapt to changing consumer purchasing scenarios[66]. - By 2025, the company expects the consumer health product market in China to reach $62.401 billion, maintaining a growth rate of over 6%[72]. - The company aims to focus on health consumer needs, particularly in weight management and gastrointestinal health, while expanding its product categories[115]. - The company will actively adapt to market changes and promote brand youthfulness through multi-channel strategies, including social media and content marketing[66]. Corporate Social Responsibility - The company has donated over 3.5 million RMB to environmental protection initiatives, enhancing public awareness of wildlife conservation[110]. - The company participates in poverty alleviation activities, supporting local agricultural development in various regions[113]. - The company emphasizes low-carbon economy practices, including process improvements and reducing emissions in production[114].

Financial Performance - The revenue from continuing operations for the first half of 2024 was RMB 254.3 million, a decrease of 25.8% compared to RMB 342.8 million in the same period of 2023[23]. - The group's gross profit from continuing operations for the first half of 2024 was RMB 173.4 million, a decrease of 22.1% compared to RMB 222.6 million in the same period of 2023[24]. - The gross profit margin for the first half of 2024 was 68.2%, an increase of 3.3 percentage points from 64.9% in the same period of 2023[24]. - Total operating expenses for the first half of 2024 were RMB 169.3 million, down 22.6% from RMB 218.8 million in the same period of 2023[24]. - The total comprehensive income for the first half of 2024 was RMB 8.5 million, compared to a total comprehensive loss of RMB 174.5 million in the same period of 2023[24]. - Revenue from the four tea products was RMB 135.4 million, a decrease of 17.1% year-on-year, while revenue from weight loss products was RMB 82.1 million, down 29.3% year-on-year[25]. - The company achieved a comprehensive income attributable to owners of RMB 8.5 million in the first half of 2024, a growth of 66.7% from RMB 5.1 million in the same period of 2023[25]. - The company reported a significant increase in total revenue from RMB 342,828,000 for the six months ended June 30, 2023, to RMB 254,286,000 for the same period in 2024, indicating a decline in performance[92]. - The company recorded a loss of RMB 116,219 thousand during the period, compared to a loss of RMB 7,813 thousand in the previous period[73]. Operational Highlights - The company has established partnerships covering nearly 290,000 OTC pharmacies and medical third-party terminals across 31 provinces, regions, and municipalities in China[2]. - The company operates 63 online stores across 18 e-commerce platforms, enhancing its market presence and product sales[2]. - The company continues to focus on herbal health and weight management, expanding its product line with new offerings such as Orlistat weight loss medication and probiotics[1]. - The company aims to maintain its industry-leading position by embracing new retail formats like Douyin and Kuaishou[2]. - The company expanded its offline OTC business to nearly 290,000 pharmacies across 31 provinces, regions, and municipalities in China[25]. - The e-commerce business operated 63 stores across 18 platforms for the sale of its products in the first half of 2024[25]. - The company implemented a new partner model for its e-commerce operations, leading to significant improvements in operational efficiency and cost reduction[29]. Research and Development - The company has received 26 health food approvals and holds 114 patents, including 20 invention patents, demonstrating its commitment to innovation[2]. - The company continued to advance R&D collaborations with universities, focusing on the scientific validation of health products, demonstrating significant efficacy in reducing disease risk factors[41]. - The company published 2 academic papers and obtained 1 utility model patent in the first half of 2024, supporting the development of new health products[42]. Marketing and Brand Strategy - The brand "Besunyen" has been recognized as a "China Famous Trademark" and has been awarded multiple accolades for credibility in the health product sector[2]. - The company is committed to providing high-quality health products and services, positioning itself as a leader in the health industry[2]. - The company targeted business professionals by advertising in high-end office elevators, effectively reaching the target audience and enhancing brand recall[36]. - The company expanded its marketing efforts in lower-tier cities, integrating products and services with local pharmacies to enhance consumer health awareness[37]. - The company implemented a content marketing strategy across social media platforms, driving sales growth for products like B420 coffee and PQQ cross-border products[39]. - The company established a deep partnership with influencers on Douyin, significantly enhancing brand exposure and achieving leading sales in the probiotic coffee category[32]. - During the Women's Day promotion, the company collaborated with top influencers on Kuaishou, achieving a single event sales GMV exceeding 20 million[33]. Financial Position and Cash Flow - Net cash inflow from operating activities for continuing operations was RMB 12.35 million in the first half of 2024, a significant decrease from RMB 44.31 million in the same period of 2023[56]. - The ending cash and cash equivalents balance was RMB 184.52 million as of June 30, 2024, down from RMB 264.96 million at the end of the same period in 2023[56]. - The Group's cash and cash equivalents, including bank balances, were RMB 2,481 million as of June 30, 2024, down from RMB 2,885 million as of December 31, 2023[58]. - Total inventory as of June 30, 2024, was RMB 198.58 million, down from RMB 235.69 million as of December 31, 2023[60]. - The Group's debt-to-asset ratio was 16.9% as of June 30, 2024, compared to 21.4% as of December 31, 2023[63]. - The company reported a net cash inflow from operating activities of RMB 12,354 thousand for the six months ended June 30, 2024, down from RMB 44,314 thousand in the same period of 2023, a decrease of about 72%[74]. - Cash and cash equivalents at the end of the period were RMB 184,518 thousand, compared to RMB 264,961 thousand at the end of the previous year, a decrease of approximately 30%[75]. Employee and Administrative Expenses - Employee benefits expenses decreased by RMB 48.2 million in the first half of 2024 compared to the first half of 2023, primarily due to a reduction in the number of sales personnel[50]. - Total administrative expenses for the first half of 2024 amounted to RMB 43.4 million, a 13.6% increase from RMB 38.2 million in the first half of 2023, mainly due to higher professional and consulting service fees[50]. - The group had 151 employees as of June 30, 2024, down from 179 employees as of December 31, 2023[66]. - Employee costs for the six months ended June 30, 2024, were RMB 24.5 million, a decrease of 70% from RMB 81.6 million in the same period of 2023[66]. Shareholder Information - The board proposed an interim dividend of HKD 0.9 per share, totaling approximately HKD 110,039,000, subject to shareholder approval[131]. - The total number of issued shares is 122,265,585[146]. - Zhao Yihong holds 62,975,657 shares, representing 51.51% of the total issued shares[145]. - Foreshore Holding Group Limited and its associated entities collectively own 61,219,437 shares, accounting for 50.07% of the total issued shares[147]. - The share option plan allows for a maximum issuance of 12,226,558 shares, which is 10% of the total issued shares[152]. - The share option plan was approved on April 11, 2024, and is valid for ten years[149]. - Each eligible participant in the share option plan can receive options not exceeding 1% of the total issued shares within any twelve-month period[153]. Compliance and Governance - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO[162][163]. - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and internal controls[164]. - The interim financial information for the six months ending June 30, 2024, has been reviewed by the auditors[165]. - The board has confirmed compliance with the standard code of conduct for securities transactions by directors for the six months ending June 30, 2024[166].