Financial Performance - Revenue for the six months ended June 30, 2020, was RMB 89,436,000, a decrease of 4.9% compared to RMB 94,023,000 for the same period in 2019[47]. - Gross profit for the same period was RMB 56,698,000, down 7.4% from RMB 61,237,000 in 2019[47]. - Loss from operations was RMB 21,452,000, showing an improvement of 3.8% compared to a loss of RMB 22,300,000 in the previous year[47]. - The loss for the period increased to RMB 48,499,000, which is 9.0% higher than the loss of RMB 44,477,000 in 2019[47]. - Loss attributable to equity holders from continuing operations was RMB 46,745,000, compared to RMB 43,426,000 in the prior year, reflecting a 7.6% increase[47]. - Basic and diluted loss per share from continuing operations was RMB (4.37), a significant decline from earnings of RMB 0.28 in the same period last year, representing a decrease of 1,660.7%[47]. - Basic loss per share from continuing operations was RMB (2.45), slightly improved from RMB (2.60) in 2019, indicating a 5.8% improvement[47]. - The Group recorded a net loss of RMB 48.5 million, representing a year-on-year increase of 9.0% from a net loss of RMB 44.5 million in the corresponding period of 2019[50][58]. - Total revenue from proprietary products decreased by RMB 4.6 million or 4.9% to RMB 89.4 million for the six months ended 30 June 2020, compared to RMB 94.0 million for the corresponding period in 2019[67]. - Revenue from Shusi decreased by RMB 4.2 million or 5.7% to RMB 69.6 million for the Period Under Review, compared to RMB 73.8 million for the corresponding period in 2019[67]. - Revenue from Zhuo'ao decreased by RMB 0.9 million or 7.1% to RMB 11.7 million, compared to RMB 12.6 million for the corresponding period in 2019[67]. Operational Challenges - The outbreak of COVID-19 significantly impacted sales, particularly from March to May 2020, leading to a sharp decline in outpatient and ward numbers[55][56]. - The decrease in sales was attributed to changes in industry policies, a shift in sales model, and the impact of COVID-19 on sales volume[58][59]. - The Chinese economy contracted by 6.8% in the first quarter of 2020, marking the first decline since 1992, yet the pharmaceutical industry maintained growth momentum[55][56]. - The Group is focusing on adjusting its sales model and tightening cost control to improve financial conditions amid challenging economic conditions[50][58]. Strategic Initiatives - The company continues to focus on improving operational efficiency and reducing losses in the upcoming periods[47]. - Future strategies may include market expansion and potential new product development to enhance revenue streams[47]. - The management is committed to pursuing strategic initiatives to lay a stronger foundation for sustainable growth in revenue and profitability[77]. - The Group will adopt flexible strategies to respond to market changes and maintain financial flexibility amid uncertainties from the COVID-19 epidemic[78]. - The Group's manufacturing segment has shown positive progress, reflecting the effectiveness of strategic initiatives taken[77]. Financial Management - The Group's financial flexibility is being maintained despite the challenges posed by the pandemic[80]. - The Group's capital management aims to maintain its ability to provide returns for shareholders while managing its capital structure based on economic conditions and future capital requirements[111]. - The Group does not currently employ any financial instruments to hedge against foreign exchange or interest rate risks[117][115]. - As of June 30, 2020, total debt was RMB 1,435.7 million, a decrease from RMB 1,475.7 million as of December 31, 2019[119]. - Bank borrowings as of June 30, 2020, were approximately RMB 745.4 million, down from RMB 791.5 million at the end of 2019[122]. - The gearing ratio increased significantly to 190.8% as of June 30, 2020, compared to 82.1% as of December 31, 2019[127]. Shareholder Information - The Group raised net proceeds of approximately HK$ 11.0 million from the bond issuance, with 20% allocated to general working capital and 80% for repayment of existing debts[137]. - The company issued up to 325,000,000 redeemable convertible preference shares (CPS) at a price of HK$1.83 per CPS, representing a premium of approximately 6.40% to the closing price of HK$1.72 per share on the date of the CPS Placing Agreement[143]. - A total of 294,659,500 CPSs were successfully placed to not less than six independent professional, institutional, or other investors[143]. - The net proceeds from the issuance of CPS were fully utilized for general working capital, repayment of existing debts, and business development[143]. Corporate Governance - The Company has complied with all applicable code provisions in the Corporate Governance Code throughout the six months ended June 30, 2020[185]. - The Board currently comprises three executive Directors, one non-executive Director, and three independent non-executive Directors, with independent non-executive Directors representing more than one-third of the Board members[190]. - The roles of chairman and chief executive officer are held by the same individual, Mr. Ng Tit, which the Board believes provides strong leadership[186]. - The Audit Committee, comprising independent non-executive Directors, reviewed the unaudited interim results for the six months ended June 30, 2020, and recommended their adoption by the Board[197].

Financial Performance - Revenue for the six months ended June 30, 2019, was RMB 186.1 million, a decrease of 40.4% compared to RMB 312.0 million in the same period of 2018[17]. - Gross profit for the same period was RMB 133.9 million, down 44.5% from RMB 241.1 million in 2018[18]. - Operating profit decreased by 76.3% to RMB 3.7 million, compared to RMB 142.5 million in the prior year[19]. - Net profit for the period was RMB 3.7 million, representing a significant decline of 95.6% from RMB 84.3 million in 2018[20]. - Basic earnings per share from continuing operations dropped to RMB 0.28, a decrease of 94.7% from RMB 5.28 in the previous year[27]. - The Group's total revenue from continuing operations decreased by RMB 125.9 million to RMB 186.1 million for the six months ended June 30, 2019, compared to RMB 312.0 million for the same period in 2018, reflecting a decline of approximately 40.4%[39]. - Operating profit from continuing operations fell by RMB 102.2 million to RMB 3.7 million for the same period, down from RMB 105.9 million in 2018, representing a decrease of about 96.5%[39]. - Net profit for the period was RMB 3.7 million, a significant drop of 95.6% compared to RMB 84.3 million in the same period of 2018[39]. - Revenue from proprietary products manufacturing and sales decreased by RMB66.0 million or 41.3% to RMB94.0 million for the six months ended June 30, 2019, compared to RMB160.0 million in the same period of 2018[60]. - Revenue from proprietary products decreased by RMB66.0 million to RMB94.0 million, accounting for 50.5% of total revenue, compared to RMB160.0 million or 51.3% in the same period of 2018[78]. Cost and Expenses - Cost of sales decreased by RMB18.7 million to RMB52.2 million, compared to RMB70.8 million in the same period of 2018, primarily due to lower costs for Shusi and Zhuo'ao[80]. - The Group's total costs on remuneration, welfare, and social security amounted to RMB49.7 million for the period ended June 30, 2019, down from RMB78.5 million in the same period of 2018[64]. - Operating expenses decreased by RMB 8.5 million or 11.6% to RMB 64.8 million for the six months ended June 30, 2019, compared to RMB 73.3 million in the same period of 2018[88]. - Sales cost decreased by RMB 18.7 million to RMB 52.2 million for the six months ended June 30, 2019, compared to RMB 70.8 million in the same period of 2018, primarily due to a decline in sales costs of Shusi and Zhuo'ao[82]. Market and Product Development - The overall revenue decline was attributed to price drops across various products due to industrial policy changes[37]. - The Group's orthopedic product Miacalcic has been sold in 32 provinces and 36 first-tier cities across China, as well as in 12 overseas countries, establishing a solid foundation for its orthopedic business[47]. - Shusi, the Group's first self-developed atypical antipsychotic drug, has been widely recognized in the market and is positioned to enhance brand awareness and market penetration through targeted sales strategies[42]. - The Group entered into a cooperation agreement with Pfenex Inc. to jointly develop teriparatide products, with exclusive commercialization rights in five countries/regions, including the PRC[52]. - Teriparatide is the first and only FDA-approved drug for osteoporosis treatment, aimed at stimulating bone formation and improving bone quality, which aligns with the Group's strategy to enhance its orthopedic product offerings[53]. - The Group aims to provide better-quality drugs to patients and reinforce its market position in the orthopedic area, particularly in light of the increasing prevalence of osteoporosis[53]. - The Group is focusing on strengthening its biotechnological research platform while actively adjusting its sales channels for orthopedic and psychiatric drug markets[41]. - The Group aims to focus on psychiatric and orthopedic products, particularly promoting Shusi and Miacalcic, to drive sales growth[70]. Financial Position and Debt Management - As of June 30, 2019, total debt amounted to RMB 1,363,663,000, a decrease from RMB 1,411,632,000 as of December 31, 2018, representing a reduction of approximately 3.4%[112]. - The debt-to-assets ratio improved to 58.2% as of June 30, 2019, compared to 63.4% as of December 31, 2018, indicating enhanced financial stability[118]. - The Group's bank borrowings were approximately RMB 852.3 million as of June 30, 2019, slightly down from RMB 859.3 million as of December 31, 2018[114]. - Other borrowings totaled RMB 106.3 million as of June 30, 2019, down from RMB 151.3 million in the previous period, reflecting a decrease of about 29.8%[114]. - The Group's bank deposits pledged to secure loans increased to RMB 78.0 million as of June 30, 2019, from RMB 38.0 million as of December 31, 2018[119]. - The Group's debt/assets ratio is closely monitored, defined as total borrowings divided by total assets[102]. Corporate Governance and Shareholder Information - The Board comprises four executive Directors, two non-executive Directors, and three independent non-executive Directors, with independent non-executive Directors representing one-third of the Board members[191]. - The Company has complied with all applicable code provisions in the Corporate Governance Code throughout the six months ended June 30, 2019, except for the deviation from code provision A.2.1[187]. - The Company is committed to high standards of corporate governance and has adopted the relevant best practices[187]. - The roles of chairman and chief executive officer are held by the same individual, Mr. Ng Tit, with clearly defined responsibilities[187]. - The company has a significant concentration of ownership among its substantial shareholders, with the top five shareholders holding over 54% of the total shares[151]. - The company’s major shareholders include both individual and corporate entities, indicating a diverse ownership structure[151]. Capital Expenditure and Investments - Total capital expenditure decreased by RMB113.5 million or 76.6% to RMB34.7 million for the six months ended 30 June 2019, compared to RMB148.2 million for the corresponding period in 2018[101]. - A conditional acquisition agreement was entered into on June 25, 2019, for approximately 52.00% of the total issued share capital of Hong Kong WD Pharmaceutical Co., Limited[124]. - The issuance of convertible bonds with an aggregate principal amount of HK$234,600,000 was completed in April 2019, aimed at raising funds for future investments[127]. - The company raised net proceeds of HK$234,200,000 through the issuance of convertible bonds, which were used for repayment of existing debts, business development, and general working capital[128]. Share Options and Awards - The Company adopted a new share award scheme on September 4, 2015, to recognize and incentivize certain employees[142]. - As of June 30, 2019, the trustee of the Share Award Scheme held a total of 28,407,847 shares, compared to 1,680,500 shares on June 30, 2018[142]. - A total of 12,280,866 shares were granted under the New Share Award Scheme as of June 30, 2019[142]. - The total number of share options exercised during the period was zero, indicating no activity in this regard[140].