Financial Performance - For the year ended December 31, 2023, the revenue from continuing operations was RMB 542.9 million, a decrease of 32.2% compared to RMB 801.3 million in 2022[19]. - The gross profit from continuing operations for 2023 was RMB 346.2 million, down 29.7% from RMB 492.6 million in 2022, with a gross margin of 63.8%, an increase of 2.3 percentage points from 61.5% in 2022[19]. - The total comprehensive loss for 2023 was RMB 358.6 million, compared to RMB 104.4 million in 2022, with a comprehensive loss attributable to owners of the company amounting to RMB 300.4 million[20]. - The basic and diluted loss per share attributable to owners for 2023 was RMB 2.45, with a loss of RMB 1.30 per share from continuing operations and RMB 1.15 per share from discontinued operations[20]. - Operating loss increased significantly to RMB 150,287,000 compared to a loss of RMB 31,377,000 in 2022[21]. - The net loss for the year was RMB 357,514,000, which is a substantial increase from RMB 104,389,000 in 2022[22]. - The accumulated losses increased to RMB 827.2 million in 2023 from RMB 527.9 million in 2022, indicating a worsening financial position[13]. - The company reported a financial cost net amount of RMB 364 thousand, with financial income of RMB 1,634 thousand and financial costs of RMB 1,998 thousand[46]. - The company’s income tax expense for 2023 was RMB 9.4 million, a significant decrease from RMB 29.0 million in 2022 due to reduced taxable profits[117]. Assets and Liabilities - Non-current assets decreased to RMB 277.1 million in 2023 from RMB 794.4 million in 2022, reflecting a significant reduction in property, plant, and equipment[12]. - Current assets totaled RMB 427.9 million in 2023, down from RMB 742.8 million in 2022, primarily due to a decrease in inventory and trade receivables[12]. - The total assets of the company decreased to RMB 704.9 million in 2023 from RMB 1,537.1 million in 2022[12]. - The company’s total liabilities decreased to RMB 150,973,000 from RMB 484,728,000 in the previous year, indicating a significant reduction in financial obligations[29]. - The company’s total equity and liabilities amounted to RMB 704,943,000, down from RMB 1,537,138,000 in 2022[29]. Revenue Breakdown - Total revenue for the tea products segment was RMB 371,119 thousand, while the weight loss and other pharmaceuticals segment generated RMB 171,757 thousand, leading to a total revenue of RMB 542,876 thousand[46]. - Revenue from the weight loss products in 2023 was RMB 161.8 million, down 28.5% from RMB 226.2 million in 2022[87]. - Revenue from an external online sales platform was approximately RMB 56,724,000, accounting for 10.4% of total revenue, slightly down from 10.9% in 2022[45]. Cost Management - The company reported a significant decrease in sales and marketing expenses to RMB 320,704,000 from RMB 378,850,000 in the previous year, reflecting a cost-cutting strategy[21]. - The company's sales cost for 2023 was RMB 196.7 million, a decrease of 36.3% from RMB 308.8 million in 2022[91]. - In 2023, the company's sales and marketing expenses amounted to RMB 320.7 million, a decrease of 15.4% from RMB 378.9 million in 2022, representing 59.1% of total revenue[94]. - Administrative expenses rose to RMB 153.1 million in 2023, up 32.3% from RMB 115.7 million in 2022, largely due to strategic adjustments and one-time severance payments[97]. Strategic Initiatives - The company continues to focus on the production and sale of functional health tea products and weight loss medications[16]. - The company engaged in strategic adjustments by establishing joint ventures and service agreements to enhance distribution and operational services[33]. - The company aims to enhance supply chain management by adopting a "one product, one strategy" approach to meet market demands for small batch and rapid response[111]. - The company plans to continue enhancing its product offerings and services in the health industry[87]. - The company aims to improve operational management efficiency and data processing capabilities while enhancing employee training and performance management systems[147]. Market Position and Future Plans - The company aims to focus on high-quality development and profitability in 2024, leveraging consumer health needs as a driver for innovation[104]. - Plans for 2024 include deepening channel development and enhancing market position through operational reforms and increased advertising[107]. - The company will strengthen cooperation with new business partners to improve channel control and pricing strategies in 2024[108]. - The company plans to continue expanding its new retail business, focusing on emerging marketing platforms like Douyin and Kuaishou to increase market share[109]. - The company has maintained a healthy financial status while adapting to market competition through operational reforms[171]. Research and Development - Research and development costs totaled RMB 34,922 thousand, with RMB 13,898 thousand from the tea products segment and RMB 21,024 thousand from the weight loss and other pharmaceuticals segment[46]. - New product development includes the successful launch of health products like Lingzhi Ginseng Granules and Lingzhi Goji Reishi Tea, expanding into liver protection and immune enhancement markets[185]. - The company has strengthened its innovation capabilities by refining health food product approvals and enhancing production management processes[185]. Corporate Social Responsibility - The company has established a charity fund in collaboration with the Beijing Charity Foundation, which provided various forms of assistance to disadvantaged groups in 2022[195]. - The company has donated over RMB 3.5 million to environmental protection initiatives since 2015, raising public awareness about wildlife protection[195].

Financial Performance - The group's operating expenses for the first half of 2023 amounted to RMB 222.6 million, a decrease of 1.4% compared to RMB 225.7 million in the same period of 2022[10] - The group's gross profit from continuing operations for the first half of 2023 was RMB 222.2 million, a decrease of 8.3% compared to RMB 242.3 million in the same period of 2022[23] - The group's gross profit margin from continuing operations for the first half of 2023 was 64.8%, an increase of 4.8 percentage points compared to 60.0% in the same period of 2022[23] - The company's attributable comprehensive loss for the first half of 2023 was RMB 116.2 million, with a comprehensive income from continuing operations of RMB 1.3 million and a comprehensive loss from discontinued operations of RMB 117.5 million[24] - The company's revenue from continuing operations in the first half of 2023 was RMB 343.0 million, a decrease of 15.1% compared to the same period in 2022[32] - The company's total comprehensive loss for the first half of 2023 was RMB 174.5 million, with a comprehensive income from continuing operations of RMB 1.3 million and a comprehensive loss from discontinued operations of RMB 175.8 million[33] - The company's revenue in the first half of 2023 was RMB 343.0 million, a year-on-year decrease of 15.1%, with revenue from "Four Teas" at RMB 163.4 million (down 3.9%) and revenue from weight-loss drugs at RMB 116.2 million (down 3.1%)[35] - Sales cost for the first half of 2023 was RMB 120,827 thousand, compared to RMB 161,487 thousand in the same period of 2022[103] - Gross profit for the first half of 2023 was RMB 222,160 thousand, with a gross margin of 64.8%, up from 60.0% in 2022[103] - Sales and marketing expenses for the first half of 2023 were RMB 162.1 million, almost unchanged from RMB 162.4 million in 2022[104] - Employee benefits expenses decreased by RMB 6.6 million in the first half of 2023 compared to the same period in 2022, mainly due to a reduction in sales staff[105] - R&D costs for the first half of 2023 were RMB 18,609 thousand, accounting for 5.4% of revenue, up from 1.0% in 2022[107] - Total revenue for 2023 was RMB 342.987 million, a decrease from RMB 403.774 million in 2022[128] - Revenue from weight loss products in 2023 was RMB 116.184 million, accounting for 33.9% of total revenue, down 3.1% from 2022[128][129] - Revenue from other health products in 2023 was RMB 54.313 million, a significant decrease of 28.9% from 2022[128][129] - Marketing and promotional expenses in 2023 were RMB 66.251 million, a decrease of RMB 10.7 million from 2022, mainly due to reduced e-commerce platform promotion fees[131] - Administrative expenses in 2023 were RMB 41.8 million, a 29.3% decrease from 2022, driven by cost optimization and organizational restructuring[133] - The company's asset-liability ratio as of June 30, 2023, was 19.0%, down from 31.5% at the end of 2022[145] - The company sold 51% equity in target companies for a total consideration of RMB 137.7 million, resulting in a post-tax loss of RMB 175.8 million from discontinued operations[144] - Employee costs for the first half of 2023 were RMB 81.8 million, down from RMB 95.4 million in the same period in 2022[148] - The company's total inventory as of June 30, 2023, was RMB 35.3 million, a significant decrease from RMB 109.239 million in 2022[143] - Revenue for the first half of 2023 was RMB 343.0 million, a decrease of 15.1% compared to RMB 403.8 million in the same period of 2022[150] - Gross profit margin increased to 64.8% in the first half of 2023, up 4.8 percentage points from 60.0% in the same period of 2022, driven by higher-margin products and reduced procurement costs for weight-loss drugs[151] - Advertising expenses increased by RMB 18.7 million in the first half of 2023 compared to the same period in 2022[152] - R&D costs rose to RMB 18.6 million in the first half of 2023, up from RMB 4.2 million in the same period of 2022, primarily due to outsourced R&D activities[155] - The company recorded a total comprehensive loss of RMB 174.5 million in the first half of 2023, compared to a loss of RMB 9.1 million in the same period of 2022[156] - The company's total comprehensive loss attributable to owners for the six months ended June 30, 2023, was RMB 116,219 thousand, compared to a loss of RMB 6,621 thousand in the same period in 2022[177] - The loss from discontinued operations for the six months ended June 30, 2023, was RMB 117,501 thousand, compared to a loss of RMB 2,591 thousand in the same period in 2022[177] - The company's total assets decreased from RMB 1,537,138 thousand as of December 31, 2022, to RMB 911,200 thousand as of June 30, 2023[179][181] - The company's total liabilities decreased from RMB 484,728 thousand as of December 31, 2022, to RMB 173,082 thousand as of June 30, 2023[181] - The company's total equity decreased from RMB 1,052,410 thousand as of January 1, 2023, to RMB 738,118 thousand as of June 30, 2023[183] - The company's non-current assets decreased from RMB 794,366 thousand as of December 31, 2022, to RMB 334,251 thousand as of June 30, 2023[179] - The company's current assets decreased from RMB 742,772 thousand as of December 31, 2022, to RMB 576,949 thousand as of June 30, 2023[179] - The company's inventory decreased from RMB 109,239 thousand as of December 31, 2022, to RMB 35,300 thousand as of June 30, 2023[179] - The company's cash and cash equivalents increased from RMB 230,320 thousand as of December 31, 2022, to RMB 264,961 thousand as of June 30, 2023[179] - The company's total comprehensive loss for the six months ended June 30, 2023, was RMB 174,490 thousand, compared to a loss of RMB 9,110 thousand in the same period in 2022[183] Sales and Distribution - The group's offline sales business covered nearly 410,000 OTC pharmacies and supermarkets across 31 provinces, autonomous regions, and municipalities through 118 distributors and 98 sub-distributors in the first half of 2023[16] - The group's online sales team operated 120 stores on 36 e-commerce platforms, selling products including the four teas, Orlistat, and other group products in the first half of 2023[16] - The group's offline sales team directly serves nearly 100,000 OTC pharmacies and supermarkets[16] - The group has been actively exploring new retail channels such as Douyin, Kuaishou, O2O, and B2C to accelerate market entry for new products[16] - The company's offline sales business covered nearly 410,000 OTC pharmacies and third terminals across 31 provinces, autonomous regions, and municipalities through 118 distributors and 98 sub-distributors[26] - The company's online sales team operates 120 stores on 36 e-commerce platforms, focusing on products like "Four Teas" and Orlistat[26] - The company is actively exploring new retail models such as TikTok, Kuaishou, O2O, B2C, and cross-border e-commerce to accelerate market entry for new products[26] - The company implemented a "one-row-one-control" promotional marketing campaign in the weight loss and intestinal health product categories, focusing on core and regional key chains[27] - The company leveraged O2O, membership platforms, and live streaming to enhance consumer engagement and increase purchase intent[28] - The company has implemented a strategy to enhance sales through data-driven analysis, focusing on metrics such as distribution rate, number of stores, customer order growth, and single-store productivity[79] - The e-commerce division has improved inventory management, reducing inventory turnover time and minimizing losses from expired products, while also decreasing inventory levels and capital tied up in stock[85] - The company has strengthened platform communication and resource collaboration, securing favorable terms and policy support from platforms like JD.com during major promotions such as 38, 55, and 618[87] - The company has leveraged high-speed rail media to enhance brand influence, focusing on short-term high exposure strategies to rapidly cover target markets and boost brand momentum[90] - The company has targeted the family demographic in the new retail era, aiming to capture growth opportunities in lower-tier markets[92] - The company has engaged with Generation Z through campus activities and collaborations with academic institutions, promoting a healthy lifestyle and gathering creative insights for product development and marketing[94] - The company achieved a closed-loop operation system for product promotion and sales on the Douyin platform, enhancing the effectiveness of platform promotion and acquiring more high-quality new customers[114] - The company expanded its e-commerce channels by adding Baidu Health Mall and Dewu platform in the first half of 2023[115] - The company collaborated with China High-Speed Rail to reach a large number of passengers and release brand potential[118] Research and Development - The group has 38 health food approvals and 116 patented technologies, including 18 invention patents[4] - The group's production base for the four teas is located in Beijing's Fangshan District, with facilities and processes compliant with national GMP standards and certified by ISO9001, ISO22000, and HACCP systems[15] - The company completed the national key R&D project on the evaluation system and demonstration research platform for traditional Chinese medicine health products[95] - The company completed the development and academic research of a new product, Poria and Alisma Tablets, with weight-loss health functions[124] - The company plans to focus on R&D, market trends, and consumer demand, particularly in weight management and gastrointestinal health, while exploring new retail channels[127] Corporate Governance and Shareholding - Executive Director Zhao Yihong holds a 51.34% beneficial interest in the company's shares, including direct and indirect holdings through controlled entities[48][49] - Foreshore Holding Group Limited, controlled by Zhao Yihong, holds a 50.07% stake in the company's issued shares[54] - Peng Wei, a major shareholder, holds an 8.41% stake in the company's issued shares[54] - Everyoung Investment Holdings Limited, controlled by Peng Wei, holds a 7.59% stake in the company's issued shares[54] - The company's total issued shares as of June 30, 2023, amounted to 122,265,585 shares[56] - The company's board has decided not to declare any dividends for the six months ended June 30, 2023[63] Operational Efficiency and Cost Management - The company is optimizing its organizational structure and product portfolio to improve operational efficiency and profitability[35] - The company's wage, bonus, and other allowances expenses for the six months ended June 30, 2023, totaled RMB 4,687,000[68] - The company's pension costs for the six months ended June 30, 2023, amounted to RMB 143,000[68] - The company's total employee benefits expenses for the six months ended June 30, 2023, were RMB 4,830,000[68] - The company has signed non-cancellable operating leases for offices and staff dormitories, with future minimum lease payments not recognized as liabilities on the balance sheet[70] - The company's capital commitments for property, plant, and equipment as of June 30, 2023, amounted to RMB 7,211,000[69] - Capital expenditures for property, plant, and equipment totaled RMB 3.2 million in the first half of 2023, down from RMB 11.4 million in the same period of 2022[164] - Inventory levels decreased significantly, with finished goods inventory dropping to RMB 28.8 million as of June 30, 2023, from RMB 59.8 million as of December 31, 2022[166] - The company utilized RMB 125.9 million from a rights issue for its intended purposes as of June 30, 2023[163] - Capital commitments for property, plant, and equipment stood at RMB 7.2 million as of June 30, 2023, down from RMB 12.6 million as of December 31, 2022[195] - The company allocated funds for investments in funds and other financial assets to generate investment income while maintaining liquidity[194] Cash Flow and Financial Position - Cash and cash equivalents, including time deposits, amounted to RMB 377.9 million as of June 30, 2023, down from RMB 483.8 million as of December 31, 2022[161] - Bank borrowings decreased to RMB 5.0 million as of June 30, 2023, with an interest rate of 4.70%, compared to RMB 177.6 million as of December 31, 2022[162] - Operating cash flow from continuing operations increased to RMB 44,126 thousand in H1 2023, compared to a negative RMB 52,704 thousand in H1 2022[185] - Net cash inflow from operating activities reached RMB 88,197 thousand in H1 2023, a significant improvement from RMB 9,505 thousand in H1 2022[185] - Proceeds from the sale of financial assets at fair value through profit or loss amounted to RMB 263,170 thousand in H1 2023, slightly lower than RMB 411,898 thousand in H1 2022[185] - Net cash inflow from investing activities decreased to RMB 18,013 thousand in H1 2023 from RMB 85,016 thousand in H1 2022[185] - Net cash outflow from financing activities was RMB 71,313 thousand in H1 2023, higher than RMB 49,463 thousand in H1 2022[185] Sustainability and Corporate Responsibility - The company emphasized sustainable development, employee welfare, and maintaining strong relationships with suppliers and customers[197] - The company invested in employee education and training programs to enhance skills and collaboration[198] Financial Reporting Standards - The interim financial information was prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[200]

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，概不對因本公告全部或任何部分內容 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。 碧 生 源 控 股 有 限 公司 BESUNYEN HOLDINGS COMPANY LIMITED （於開曼群島註冊成立的有限公司） （股份代號：926） 中期業績公告 截至二零二三年六月三十日止六個月 本集團的經營業績 本集團二零二三年上半年的持續經營業務收入為人民幣343.0百萬元，較二零二二年同 期的持續經營業務收入人民幣403.8百萬元減少15.1%。 本集團二零二三年上半年的持續經營業務毛利為人民幣222.2百萬元，較二零二二年同 期的持續經營業務毛利人民幣242.3百萬元減少8.3%。本集團二零二三年上半年的持續 經營業務毛利率為64.8%，較二零二二年同期的持續經營業務毛利率60.0%上升4.8個百 分點。 本集團二零二三年上半年持續經營業務的運營開支（包括銷售及市場營銷開支、行政開 ...

Sales and Revenue Performance - The total cumulative sales of the four tea products exceeded 5.843 billion bags, generating sales revenue of over RMB 7.877 billion as of December 31, 2022[3]. - The company's revenue for the year ended December 31, 2022, was RMB 943.3 million, a decrease of 14.3% compared to RMB 1,101.2 million in the previous year[13]. - The revenue contribution from weight loss products decreased to 28.4% in 2022 from 34.7% in 2021, indicating a shift in product performance[67]. - Revenue from weight loss products in 2022 was RMB 267.6 million, down 29.9% from RMB 381.5 million in 2021, primarily due to a 26% decrease in shipment volume[68]. - Total sales and marketing expenses for 2022 were RMB 389.5 million, a decrease of 25.3% from RMB 521.8 million in 2021, mainly due to reduced marketing costs on e-commerce platforms[72]. Profitability and Financial Health - The net loss for the year was RMB 104.4 million, slightly narrowing from a loss of RMB 114.0 million in the previous year[13]. - The loss attributable to the company's owners was RMB 99.1 million, an improvement from a loss of RMB 145.7 million in the previous year[13]. - Gross profit for 2022 was RMB 566.288 million, down from RMB 698.550 million in 2021, reflecting a gross margin decline[66]. - The company reported an operating loss of RMB 74.770 million for 2022, compared to a loss of RMB 88.101 million in the previous year, indicating an improvement in operational efficiency[66]. - The company aims to achieve high-quality development by maintaining profitability and positive cash flow, with a focus on operational stability and cost reduction in 2023[56]. Product Development and Innovation - The company has expanded its product offerings to include OTC weight loss products, with the acquisition of Zhongshan Wanhua Pharmaceutical Co., which has a focus on the development and production of orlistat capsules[3]. - The company aims to enhance its competitive position in the health industry by focusing on herbal and health products, particularly in weight management and gastrointestinal health[13]. - The company plans to continue expanding its product offerings and optimizing its product structure to meet diverse consumer health needs[16]. - The company will increase investment in research and development to support new product development and digital upgrades in management and marketing[17]. - The company has a total of 53 drug approvals for various products, including original research drugs like soft capsules for brain health and garlic oil[5]. Market Expansion and Sales Channels - The company operates through 67 distributors and 96 sub-distributors, covering nearly 400,000 OTC pharmacies and supermarkets across 31 provinces, regions, and municipalities in China[6]. - The online sales team operates 122 stores across 35 e-commerce platforms, facilitating faster market entry for new products[6]. - The company intends to strengthen its online and offline sales channels, including traditional pharmacies and new e-commerce models[16]. - The company is focusing on enhancing its online and offline operations, exploring digital marketing and new retail strategies to drive growth[24]. - The company aims to increase consumer engagement and loyalty through O2O sales models and interactive marketing strategies[28]. Operational Efficiency and Management - The company is committed to improving operational efficiency through organizational streamlining and enhanced performance evaluation mechanisms[17]. - The company has optimized its e-commerce business by reducing product specifications by over 40% in 2022, focusing on high-quality and best-selling products[30]. - The company has adjusted its organizational structure to strengthen strategic cooperation with key accounts and enhance product turnover rates[27]. - The company has streamlined its management structure, significantly reducing the number of management personnel to enhance communication efficiency[34]. - The company is committed to optimizing its internal operations and cost structures to improve profitability and cash flow[58]. Corporate Governance and Management Team - The company is committed to maintaining high standards of corporate governance, as evidenced by the composition of its board and committees[108][110]. - The board of directors consists of seven members, including three executive directors and four non-executive directors, with Zhao Yihong serving as both Chairman and CEO[197]. - The management team has a combined experience of over 100 years in various sectors, including finance, marketing, and operations, which supports strategic decision-making[111][115]. - Independent non-executive directors have confirmed their independence in accordance with listing rules, ensuring effective corporate governance[199]. - All directors received over 15 hours of training in 2022 on topics including compliance with listing rules and corporate governance[200]. Environmental, Social, and Governance (ESG) Initiatives - The company has implemented a top-down management approach for ESG, with the board responsible for setting strategies and assessing risks and opportunities[123]. - The company engages with stakeholders through various channels to understand their needs and expectations regarding ESG factors[125]. - The report emphasizes the importance of stakeholder participation in identifying and prioritizing key ESG issues[126]. - The company has committed to ensuring the accuracy and completeness of the ESG report, with the board taking responsibility for its content[122]. - The company has established a systematic process for collecting and quantifying relevant environmental and social data for performance indicators[121]. Employee Management and Development - The company recognizes employees as valuable assets and provides comprehensive social welfare benefits to enhance employee engagement[102]. - The company invests in employee training and development to enhance skills and collaboration, indicating a focus on human resource management[103]. - Employee costs, including director remuneration, amounted to RMB 248.7 million for the year ended December 31, 2022, compared to RMB 291.9 million in the previous year, reflecting a decrease of about 15%[103]. - The company emphasizes a diverse and inclusive work environment, prohibiting discrimination based on nationality, age, gender, and other factors[167]. - The company has maintained a zero fatality rate due to work-related incidents for the past three years[171]. Community Engagement and Social Responsibility - The company actively participates in community investment initiatives, supporting local charitable, cultural, medical, and educational activities through donations and sponsorships[191]. - The company has engaged in targeted poverty alleviation efforts, providing economic support and assistance to specific villages in Hebei and Inner Mongolia[192]. - The company is committed to fulfilling its social responsibilities through various charitable initiatives, including support for youth entrepreneurship and poverty alleviation[52]. - The company donated over RMB 3.5 million to environmental protection initiatives, enhancing public awareness of wildlife conservation[53]. - The company has implemented a strict anti-bribery policy, prohibiting employees from accepting any form of benefits from parties involved in transactions with the company[186].

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，概不對因本公告全部或任何部分內容 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。 碧 生 源 控 股 有 限 公司 BESUNYEN HOLDINGS COMPANY LIMITED （於開曼群島註冊成立的有限公司） （股份代號：926） 全年業績公告 截至二零二二年十二月三十一日止年度 財務摘要 於二零二二年，本集團的收入約為人民幣943.3百萬元，較二零二一年的收入約人民幣 1,101.2百萬元下降約14.3%。 於二零二二年，本集團的毛利率為60%，較二零二一年的63.4%下降3.4個百分點。 於二零二二年，本集團錄得全面虧損總額約為人民幣104.4百萬元，較二零二一年全面 虧損總額約人民幣114.0百萬元減少虧損約8.4%。 於二零二二年，每股基本及攤薄虧損約為人民幣1.76元，而二零二一年每股基本及攤薄 虧損約為人民幣3.65元。 ...

Financial Performance - The company's revenue for the first half of 2022 was RMB 460.1 million, a decrease of 31.4% compared to RMB 670.7 million in the same period of 2021[9]. - Gross profit for the first half of 2022 was RMB 274.5 million, down 39.8% from RMB 455.9 million in the first half of 2021, with a gross margin of 59.7%, a decline of 8.3 percentage points from 68.0%[9]. - The company recorded a total comprehensive loss of RMB 9.1 million in the first half of 2022, compared to a total comprehensive income of RMB 56.3 million in the same period of 2021[9]. - The loss attributable to owners of the company was RMB 6.6 million, with basic and diluted loss per share of RMB 0.1625, compared to a profit of RMB 26.4 million and earnings per share of RMB 0.6626 in the first half of 2021[9]. - Operating profit fell to RMB 12.2 million, a significant drop of 77.7% from RMB 53.6 million in the previous year[59]. - The company reported a net loss of RMB 9.1 million for the period, compared to a profit of RMB 56.3 million in the same period of 2021[59]. - The company reported a net cash inflow from operating activities of RMB 9,505 thousand for the six months ended June 30, 2022, compared to a net cash outflow of RMB 67,558 thousand for the same period in 2021[65]. - The company incurred total expenses of RMB 458,042,000 for the six months ended June 30, 2022, down from RMB 618,857,000 in the previous year, reflecting a reduction of approximately 26%[94]. Revenue Breakdown - Revenue from the "Three Teas" (Changrun Tea, Changqing Tea, and Xianxian Tea) was RMB 161.0 million, down 21.6% year-on-year[14]. - Weight loss product revenue was RMB 134.4 million, representing a significant decline of 52.9% compared to the same period last year[14]. - Revenue for the six months ended June 30, 2022, was RMB 460.1 million, a decline of 31.3% compared to RMB 670.7 million for the same period in 2021[59]. - Revenue from the e-commerce platform (Customer A) was approximately RMB 85,846,000, accounting for 18.7% of total revenue, down from 19.3% in the previous year[93]. Operational Challenges - The company faced a 53-day production halt at its Fangshan production base due to local pandemic control measures, impacting the shipment of core products[11]. - The domestic economy faced increased downward pressure due to the rapid spread of the Omicron variant and complex international conditions, with GDP growth slowing to 2.5% year-on-year in the first half of 2022[10]. - Retail sales of consumer goods in China decreased by 0.7% year-on-year in the first half of 2022, indicating weakened consumer confidence and suppressed consumption willingness[10]. Cost Management - Operating expenses totaled RMB 271.7 million in the first half of 2022, a reduction of 31.8% compared to RMB 398.5 million in the same period of 2021[9]. - Advertising expenses significantly decreased by RMB 50.7 million in the first half of 2022, attributed to reduced advertising activities[30]. - Total sales and marketing expenses fell to RMB 165.8 million, down from RMB 269.8 million in the previous year, representing a decrease of 38.5%[29]. - The company has optimized its organizational structure and reduced advertising expenses to manage operational costs effectively[14]. Research and Development - Research and development costs for the first half of 2022 were RMB 27.7 million, accounting for 6.0% of revenue, a decrease from RMB 54.2 million and 8.1% in the same period of 2021[32]. - The company is focusing on new product development in the areas of weight management and gastrointestinal health, with multiple new products in the pipeline[19]. Financial Position - As of June 30, 2022, the group’s cash and cash equivalents totaled RMB 382.2 million, down from RMB 425.0 million as of December 31, 2021[40]. - The group’s bank borrowings amounted to RMB 231.7 million as of June 30, 2022, with interest rates ranging from 3.70% to 6.80%[41]. - The group’s debt-to-asset ratio was 33.7% as of June 30, 2022, compared to 35.7% as of December 31, 2021[48]. - Non-current assets totaled RMB 925.4 million as of June 30, 2022, down from RMB 1,017.6 million at the end of 2021[61]. - Total assets decreased to RMB 1,540.6 million from RMB 1,642.1 million at the end of 2021[61]. Shareholder Information - The company proposed a rights issue to raise up to approximately HKD 142.6 million (approximately RMB 118.7 million) by issuing up to 81,510,390 shares at HKD 1.75 per share[157]. - The company has a total of 40,755,195 shares issued as of June 30, 2022[168]. - Mr. Zhao Yihong holds 21,050,219 shares, representing approximately 51.65% of the total issued shares[166]. - Ms. Gao Yan also holds 21,050,219 shares, equating to approximately 51.65% of the total issued shares[166]. Corporate Governance - The company has complied with the corporate governance code principles, except for the separation of roles between the Chairman and CEO as per code provision C.2.1[184][185]. - The audit committee consists of three independent non-executive directors and has reviewed the unaudited interim financial information for the six months ended June 30, 2022[186]. - The company did not purchase, sell, or redeem any of its listed securities during the six months ended June 30, 2022[189].

Financial Performance - Besunyen Holdings has sold over 5.585 billion bags of its three tea products, generating total sales exceeding RMB 7.494 billion as of December 31, 2021[3]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion in 2021, representing a growth of 15% compared to the previous year[79]. - In 2021, the company's revenue decreased by 14.81% to RMB 1,101.15 million from RMB 1,292.71 million in 2020[41]. - The revenue from weight loss products fell by 37.18% to RMB 381.47 million, down from RMB 607.31 million in 2020[42]. - The revenue from other products and medicines increased by 87.81% to RMB 375.79 million, compared to RMB 200.14 million in 2020[42]. - The company's gross profit for 2021 was RMB 698.55 million, down from RMB 913.33 million in 2020[41]. - The net loss for the year was RMB 113.99 million, compared to a profit of RMB 130.86 million in 2020[41]. - The company reported a basic loss per share of RMB 9.13 in 2021, compared to earnings of RMB 2.85 per share in 2020[41]. Product Development and Market Strategy - The company has expanded its product offerings to include OTC weight loss products, specifically the Besunyen Orlistat capsules, which have received positive consumer feedback since their launch[3]. - The company aims to achieve a full industry chain layout covering pharmaceuticals, health foods, medical devices, and general foods[3]. - The company is actively developing new products tailored to current consumer demands to drive future revenue growth[25]. - The company has focused on a dual strategy of "one vertical and two horizontals" to enhance its competitive position in the health and wellness industry[24]. - The company plans to continue focusing on weight management and gastrointestinal health while launching innovative products[40]. - The company has expanded its sales channels to include short video platforms like Kuaishou and Douyin, aiming to reach a broader audience[25]. - The company launched 12 pharmaceutical products, 11 health foods, and 62 regular food items in 2021, expanding its product structure[30]. Acquisitions and Partnerships - Besunyen acquired Henan Xueyinghua Pharmaceutical Co., enhancing its capabilities in pharmaceutical R&D and production, thus establishing a comprehensive layout in the pharmaceutical sector[3]. - The acquisition of Xue Ying Hua was completed, leading to upgrades in production, quality, and safety management systems, with the production license obtained in November 2021[33]. - The company completed the acquisition of 100% equity in Xueyinghua for RMB 31.99 million on April 21, 2021[62]. - The new retail division established a strategic partnership with Kuaishou, enhancing short video and live streaming marketing, which improved customer value and sales performance[28]. Sales and Distribution - The company operates through 87 distributors and 142 sub-distributors, covering nearly 500,000 retail outlets across 31 provinces in China, facilitating robust offline sales[6]. - Online sales are conducted through 122 stores across 35 e-commerce platforms, allowing for rapid market entry of new products[6]. - The company's market share for its weight loss product, Biyuan Brand Changqing Tea, was approximately 22.74% in 2021, an increase of 0.36 percentage points year-on-year[25]. Financial Management and Expenses - Total sales and marketing expenses decreased from RMB 661.5 million in 2020 to RMB 521.8 million in 2021, representing 47.4% of revenue[46]. - Advertising expenses decreased by RMB 29.8 million, while employee benefits increased by RMB 18.7 million due to an increase in sales personnel[48]. - Administrative expenses rose by 29.76% from RMB 134.4 million in 2020 to RMB 174.4 million in 2021, mainly due to increased employee benefits[50]. - Research and development costs were RMB 93.1 million in 2021, slightly down from RMB 93.8 million in 2020, representing 8.5% of revenue[51]. Employee Management and Training - The company had 1,626 employees as of December 31, 2021, a decrease from 1,799 employees as of December 31, 2020[71]. - Employee costs, including director remuneration, amounted to RMB 291.9 million in 2021, up from RMB 226.9 million in 2020, reflecting a significant increase[71]. - The percentage of trained employees as of December 31, 2021, was 78.00% for junior staff, 15.50% for middle management, and 6.50% for senior management[142]. - Average training hours for employees were 120 hours for junior staff, 98 hours for middle management, and 66 hours for senior management[143]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes the importance of ESG initiatives, committing to reduce carbon emissions by 20% over the next five years[86]. - The company has implemented a top-down management approach for environmental, social, and governance (ESG) strategies, with the board responsible for assessing ESG risks and opportunities[90]. - Key ESG issues identified include air pollutant and greenhouse gas emissions management, supply chain management, business strategy and performance, product quality testing, and employee treatment[101]. - The company has committed to transparency in its ESG reporting, ensuring that all critical issues are reported in accordance with ESG guidelines[95]. Risk Management - The board is responsible for assessing the nature and extent of risks acceptable to achieve strategic objectives and ensuring effective risk management systems are in place[193]. - The company continues to optimize its risk management and internal control systems to adapt to the changing business environment and risks faced[194]. - The audit committee conducts regular assessments of major business risks and the effectiveness of the overall internal control system[197]. - The risk management process includes five steps: risk system organization, risk identification, risk assessment, risk handling, and reporting and control[199]. Community Engagement and Social Responsibility - The company donated over RMB 2.9 million to communities affected by flooding in Zhengzhou for disaster relief and reconstruction efforts[164]. - The company has established a professional customer service center and a consumer consultation hotline to manage complaints effectively[154]. - The company has not experienced any significant complaints or legal actions related to product quality and services during the reporting period[155].

Sales Performance - As of June 30, 2021, cumulative sales of the three tea products exceeded 5.48 billion bags[4] - The cumulative sales of 奥利司他 capsules surpassed 510 million units as of June 30, 2021[4] - The group's revenue for the first half of 2021 was RMB 670.7 million, an increase of 10.0% compared to RMB 609.8 million in the same period of 2020[15] - Revenue for the six months ended June 30, 2021, was RMB 670.7 million, an increase from RMB 609.8 million in the same period of 2020[89] - Revenue from other pharmaceuticals saw a significant increase of 392.0%, rising from RMB 16.3 million in 2020 to RMB 80.2 million in 2021, with its revenue share increasing from 2.7% to 12.0%[49] - Total revenue for the tea products segment was RMB 305,293,000 and for the weight loss and other pharmaceuticals segment was RMB 365,402,000, totaling RMB 670,695,000 for the first half of 2021[125] Market Position - The market share of Besunyen's 常菁茶 and 常潤茶 was 22.38% and 13.89% respectively, maintaining leading positions in the market[5] - The market share of Besunyen's 奥利司他 in the Alibaba e-commerce platform was 31.42%, ranking first in its category[5] Distribution and Sales Channels - The offline sales network covers nearly 400,000 OTC pharmacies and supermarkets across 31 provinces, regions, and municipalities in China[7] - The company operates 98 stores across 33 e-commerce platforms for the sale of its products[7] - The company has established a robust distribution network through 82 distributors and 158 sub-distributors[7] - The company is actively expanding its online pharmacy business and has established a team to enhance operations on platforms like JD.com and Tmall[19] - The company monitored channel inventory and sales data in real-time, focusing on inventory turnover rates and operational cost efficiency to ensure continuous growth[26] Financial Performance - The gross profit for the first half of 2021 was RMB 455.9 million, up 3.3% from RMB 441.3 million in the same period of 2020, with a gross margin of 68.0%, down 4.4 percentage points from 72.4% in 2020[15] - The total comprehensive income for the first half of 2021 was RMB 56.3 million, compared to RMB 47.3 million in the same period of 2020[15] - The company’s attributable comprehensive income for the first half of 2021 was RMB 26.4 million, significantly up from RMB 9.4 million in the same period of 2020, with basic and diluted earnings per share of RMB 1.66, compared to RMB 0.59 in 2020[15] - The company reported a net profit attributable to owners of the company of RMB 26.4 million for the six months ended June 30, 2021, up from RMB 9.4 million in the same period of 2020[89] - The company reported a total comprehensive income of RMB 26,429 thousand for the six months ended June 30, 2021, compared to RMB 47,292 thousand in the same period of 2020[95] Research and Development - The company is focusing on research and development in endocrine metabolism, ophthalmology, and antiviral drugs through its subsidiaries, enhancing its innovation capabilities[34] - The company aims to strengthen its research and development capabilities and actively introduce new products to enhance brand competitiveness in weight management and gastrointestinal health[41] - The company established an offline new product division and an online new product operation center to expand product offerings and meet diverse user needs[17] Marketing and Consumer Engagement - The company sponsored a food reality show that attracted over 1 billion views during the Spring Festival, increasing brand awareness and consumer engagement[26] - The company expanded its fan base through social marketing strategies, collaborating with Tencent and campus events, enhancing product offerings for young consumers[26] - The CRM team upgraded its marketing system to provide personalized health guidance and launched new products under the "Burn Card Queen" brand series, which received positive feedback from loyal users[23] Acquisitions and Investments - The company completed the acquisition of 100% equity in Xueyinghua for RMB 31.99 million on April 21, 2021, making it a wholly-owned subsidiary[74] - The company completed the acquisition of 100% equity in the pharmaceutical manufacturing company Xueyinghua for RMB 319.9 million on April 21, 2021[200] Operational Efficiency - Operating expenses for the first half of 2021 totaled RMB 399.5 million, a 4.4% increase from RMB 382.5 million in the same period of 2020[15] - Total administrative expenses increased to RMB 75.52 million, accounting for 11.3% of revenue, compared to 8.6% in the same period of 2020[55] - Total expenses for sales, marketing, administrative, and research and development amounted to RMB 619,897,000, an increase from RMB 552,541,000 in the previous year[130] Cash Flow and Liquidity - The group's cash outflow from operating activities was RMB 67.56 million, a decrease from a cash inflow of RMB 58.7 million in the same period of 2020[64] - Cash flow from operating activities showed a net outflow of RMB 67,558 thousand for the six months ended June 30, 2021, compared to an inflow of RMB 58,700 thousand in the same period of 2020[97] - The company's cash and cash equivalents decreased to RMB 287,256 thousand as of June 30, 2021, from RMB 543,822 thousand as of December 31, 2020, a decline of 47.3%[91] Assets and Liabilities - The company's debt-to-asset ratio as of June 30, 2021, was 32.1%, down from 34.7% on December 31, 2020[77] - Total liabilities decreased to RMB 574,648 thousand as of June 30, 2021, down from RMB 642,842 thousand as of December 31, 2020, a reduction of 10.6%[93] - The total net book value of property, plant, and equipment as of June 30, 2021, was RMB 369,571,000, an increase from RMB 322,278,000 at the end of 2020[150] Social Responsibility - The company donated RMB 150,000 to various charitable projects, demonstrating its commitment to social responsibility and sustainable development[35]

Sales and Market Performance - As of December 31, 2020, cumulative sales of the three tea products exceeded 5.35 billion bags, with total sales revenue surpassing RMB 7.15 billion[2]. - In 2020, the market share of Besunyen's Changqing Tea was 22.38%, and Changrun Tea was 13.89%, maintaining the leading position in the market[3]. - The combined market share of Besunyen's Orlistat products on Alibaba's e-commerce platforms reached 37%, ranking first in the sector[3]. - The market share of the Biyuan brand Changqing Tea in the weight loss product segment was 22.38% in 2020, a decrease of 3.84 percentage points year-on-year[23]. - The market share of the Biyuan brand Changrun Tea in the intestinal health product segment was 13.89% in 2020, a decrease of 0.96 percentage points year-on-year[23]. - In the weight loss drug segment, the combined market share of Biyuan brand Orlistat and Laili brand Orlistat was 37% in 2020, an increase of 2.66 percentage points year-on-year[23]. Financial Performance - The group's revenue for 2020 was RMB 1,292.7 million, an increase of 59.2% compared to RMB 812.2 million in 2019[21]. - Gross profit rose from RMB 584.5 million in 2019 to RMB 913.3 million in 2020, representing a 56.3% increase, while gross margin decreased from 72.0% to 70.7%[21]. - Total operating expenses for 2020 amounted to RMB 889.7 million, up 47.0% from RMB 605.1 million in 2019[21]. - The revenue from weight loss products rose by 87.1% to RMB 607.3 million in 2020, compared to RMB 324.5 million in 2019, increasing its share of total revenue from 40.0% to 47.0%[74]. - The total operating profit for the year was RMB 113.9 million, down from RMB 208.4 million in 2019[71]. - Other income for 2020 was RMB 26.7 million, including government subsidies of RMB 18.2 million, up from RMB 6.5 million in 2019[80]. Product Development and Innovation - The company has expanded its product offerings from weight loss herbal teas to include OTC weight loss medications, enhancing its market coverage[2]. - The company has focused on upgrading its brand and expanding its product line, including pharmaceuticals, health foods, medical devices, and ordinary foods[24]. - The company launched new products in major pharmacy chains, reshaping the product landscape in offline channels[36]. - The company is committed to deepening its research in weight management and gastrointestinal health while exploring new product categories and markets[52]. - New product development includes the launch of a health-focused beverage line, projected to contribute 200 million in revenue within the first year[126]. Marketing and Sales Strategies - The company has implemented a multi-channel sales model based on e-commerce platforms and adjusted its R&D and product strategies to enrich its product categories[20]. - The company has initiated innovative marketing models and expanded its sales channels from traditional methods to include internet marketing[24]. - The company increased its CRM team size and implemented a personalized sales model, leading to improved customer retention and product repurchase rates[32]. - The company launched a marketing campaign themed around public health during the pandemic featuring four key products, winning a gold award at the 9th Social Marketing Forum[47]. - The company has set a future outlook with a revenue target of 1.5 billion for the next fiscal year, indicating an expected growth of 25%[126]. Corporate Social Responsibility - The company has established a charity fund to support social welfare projects, donating RMB 450,000 for ecological construction and poverty alleviation initiatives[58]. - The company has received recognition as an outstanding corporate social responsibility enterprise at the 2020 China Corporate Social Responsibility Cloud Summit[59]. - The company actively participates in social responsibility initiatives, including poverty alleviation and environmental protection[153]. - The company has participated in various social responsibility initiatives, including poverty alleviation and ecological conservation projects[144]. Environmental Impact and Sustainability - The company emphasizes the importance of environmental protection and has implemented reforms such as "lean production," "clean production," and "green office" to enhance energy efficiency and reduce emissions[142]. - The greenhouse gas emissions in 2020 were 2,442 tons, a reduction of 770 tons compared to 2019, indicating the effectiveness of energy-saving and emission-reduction measures[165]. - The group’s industrial wastewater discharge in 2020 was 4,589 tons, with a wastewater generation rate of 1.31 tons per ton of finished product, an increase of 306 tons from 2019[169]. - The group implemented various measures to reduce waste emissions, including waste classification and lean production initiatives[171]. Workforce and Employee Management - The total employee cost for the year ended December 31, 2020, was RMB 226.9 million, an increase from RMB 191.7 million in 2019[119]. - The group had 1,437 employees as of December 31, 2020, compared to 1,187 employees in 2019, indicating a growth in workforce[119]. - The gender distribution of employees as of December 31, 2020, was 686 females (48%) and 751 males (52%)[194]. - The company has a strong focus on talent management, implementing a performance evaluation system that rewards high achievers and fosters employee potential[142]. Future Outlook and Strategic Initiatives - The company plans to strengthen e-commerce capabilities and enhance private traffic cultivation to create a closed-loop business model[62]. - The board of directors has approved a new strategic plan that includes diversifying product offerings and entering new markets, targeting a 30% increase in overall sales by 2025[126]. - The company is focusing on digital transformation initiatives, with an investment of 30 million aimed at improving online sales channels and customer engagement[126]. - A strategic acquisition of a local competitor is in progress, expected to enhance the company's distribution network and increase market penetration by 15%[126].

Financial Performance - The revenue for the first half of 2020 was RMB 609.8 million, an increase of 80.3% compared to RMB 338.2 million in the same period of 2019[10]. - Gross profit for the first half of 2020 was RMB 441.3 million, up 78.8% from RMB 246.8 million in the same period of 2019, with a gross margin of 72.4%[10]. - Operating expenses totaled RMB 382.5 million in the first half of 2020, a 51.2% increase from RMB 252.9 million in the same period of 2019[10]. - The operating profit for the first half of 2020 was RMB 60.1 million, compared to an operating loss of RMB 2.7 million in the same period of 2019 after excluding gains from the sale of subsidiaries[10]. - Total comprehensive income for the first half of 2020 was RMB 47.3 million, down from RMB 172.7 million in the same period of 2019[10]. - The basic and diluted earnings per share attributable to the company's owners for the first half of 2020 were RMB 0.59, a significant decrease from RMB 10.48 in the same period of 2019[11]. - Revenue for the six months ended June 30, 2020, was RMB 609,775 thousand, a significant increase of 80.3% compared to RMB 338,222 thousand in the same period of 2019[64]. - Gross profit for the same period was RMB 441,308 thousand, representing a gross margin of approximately 72.3%[64]. - Operating profit decreased to RMB 60,054 thousand from RMB 222,852 thousand, reflecting a decline of 73.0% year-on-year[64]. - Net profit for the period was RMB 47,292 thousand, down 72.6% from RMB 172,748 thousand in the previous year[64]. Market Position and Sales - The cumulative sales volume of the two main tea products exceeded 5.06 billion bags, with total sales revenue surpassing RMB 6.76 billion as of June 30, 2020[2]. - The market share of Besunyen's 常潤茶 was 14.85% and 常菁茶 was 26.22% as of 2019, maintaining a leading position in the market[3]. - The combined market share of Besunyen's and 来利's orlistat products was 38.3% in the Alibaba e-commerce platform, ranking first in the category[3]. - The revenue from weight loss products surged 180.3% to RMB 305.3 million, up from RMB 108.9 million in the first half of 2019[31]. - Revenue from the Bi Sheng Yuan brand Chang Run Tea rose by 9.4% to RMB 92.9 million, despite a 16.3% decrease in sales volume to 49.7 million tea bags[27]. - The average selling price of Chang Run Tea increased from RMB 1.43 per bag in the first half of 2019 to RMB 1.87 per bag in the first half of 2020[27]. E-commerce and Marketing Strategies - The company has established 49 online stores across 9 e-commerce platforms to enhance product distribution and market presence[5]. - The e-commerce team increased collaboration with major platforms, participating in promotional activities and utilizing live streaming to attract target customers, resulting in a growing user base[14]. - The company adopted a multi-channel sales model, integrating traditional and online channels to better reach consumers[16]. - The company plans to continue enhancing its e-commerce platform marketing efforts to drive future growth[31]. Research and Development - The company is focusing on R&D in the fields of weight management and gastrointestinal health, enhancing its competitive advantage through various forms of collaboration[19]. - The company is participating in key R&D projects in collaboration with renowned research institutions to modernize traditional Chinese medicine[20]. - The company has established a quality management team to oversee product quality and risk control, integrating resources from various departments[21]. - The company plans to accelerate the development of new products and expand its market presence, particularly targeting younger consumers[24]. Operational Efficiency - The company improved logistics management by monitoring inventory data directly from distributors, effectively controlling stock turnover and avoiding excess inventory[18]. - The sales team’s performance evaluation was upgraded to focus on net sales and achievement rates, fostering a strong marketing system[18]. - The company experienced a decrease in income tax expenses to RMB 11.2 million from RMB 34.8 million in the first half of 2019[40]. - The company reported a net cash inflow from operating activities of RMB 58.7 million, compared to a net cash outflow of RMB 40.1 million in the same period of 2019[44]. Corporate Governance and Management - The company has applied the principles of the Corporate Governance Code as set out in Appendix 14 of the Listing Rules, except for the provision A.2.1[197]. - The Chairman and CEO roles are held by the same individual, Zhao Yihong, who has 30 years of experience in the Chinese food and beverage industry[198]. - The Audit Committee consists of three independent non-executive directors, ensuring oversight of the company's financial reporting and internal controls[199].