长沙晚报掌上长沙5月26日讯（通讯员 王芳容）广发银行开福支行于2025年"5·15投资者保护宣传日"期 间，围绕"普及金融知识，保护投资者权益"的主题，精心组织并开展了一系列形式多样、内容丰富的投 资者教育宣传活动，通过线上线下相结合的方式，向投资者普及金融知识，倡导理性投资理念，提升风 险防范意识。 下阶段，开福支行将继续以实际行动践行"金融为民"的理念，继续加大金融知识普及力度，通过与社 区、企业、学校等多方合作，开展形式多样的宣传活动，进一步扩大投资者教育的覆盖面和影响力。为 提升公众金融素养、构建和谐金融环境作出了积极贡献。 聚焦重点内容，提升投资者素养 此次宣传活动以"三适当"原则为核心，即"适当的产品、适当的投资者、适当的渠道"，重点普及了投资 者权益保护知识，倡导理性投资行为，提高风险识别能力。活动期间，支行工作人员通过案例分析、情 景模拟等方式，向投资者讲解了非法金融中介的危害，提醒大家远离非法推荐基金、非法代客理财等行 为，引导投资者通过正规渠道进行投资。同时，工作人员还重点讲解了消费者权益保护相关法律法规， 帮助投资者了解自身权益，增强自我保护意识。在防范电信诈骗方面，支行工作人员通过实 ...

Core Viewpoint - The article highlights the importance of veterans in the small and micro-enterprise sector, showcasing how financial support from banks can facilitate their entrepreneurial efforts and contribute to local economic development [1][2]. Group 1: Company Initiatives - Nanjing Runya Advertising Co., led by a veteran, successfully won a government procurement project for rural waste classification but faced short-term funding challenges due to high initial investment [1]. - Guangfa Bank's Nanjing branch quickly activated a green channel for small enterprises, providing tailored financing products like "Zhengcaitong" to meet the specific needs of the veteran-led company [1]. - The bank streamlined the credit approval process, enabling loan disbursement within just 7 working days, which allowed the company to proceed with project preparations [1]. Group 2: Economic Impact - The successful implementation of the project is expected to create 15 new jobs, underscoring the role of small and micro-enterprises in stabilizing employment and promoting economic growth [1]. - Guangfa Bank continues to innovate financial products aimed at small and micro-enterprises, addressing their urgent financing needs through offerings like "Huixin Tong," "Zhuanjing Te Xin E Loan," and "Zhengcaitong" [2]. - The bank plans to deepen collaboration with local governments and industrial parks, focusing on reducing financing costs for small enterprises through special quotas, interest rate discounts, and fee reductions [2].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 1,061,082 thousand, a decrease of 1.6% compared to RMB 1,078,659 thousand in 2023[11] - Gross profit decreased by 3.6% to RMB 270,446 thousand from RMB 280,665 thousand in the previous year[11] - Net profit for the year increased by 20.9% to RMB 74,466 thousand, up from RMB 61,594 thousand in 2023[11] - Basic earnings per share rose by 12.1% to RMB 7.22 from RMB 6.44 in the prior year[11] - The company proposed a final dividend of HKD 3.17 per share, a decrease of 6.2% from HKD 3.38 in 2023[11] Financial Ratios and Metrics - The current ratio decreased by 7.1% to 1.18 from 1.27 in the previous year[11] - The capital debt ratio improved to 21.6% from 24.1% in 2023, a decrease of 10.4%[11] Market Expansion and Strategy - The company plans to leverage the Greater Bay Area's policy opportunities to enhance its market presence and product offerings[16] - The company aims to utilize its Hong Kong affiliates to introduce more quality products into the mainland market and explore investment opportunities[16] - The implementation of simplified approval processes for traditional Chinese medicine in the Greater Bay Area is expected to accelerate the company's market expansion efforts[16] - The company has accelerated its expansion into South America and Africa, laying the groundwork for future performance growth through its subsidiary Dongdixin Technology[29] - The company aims to strengthen cross-border pharmaceutical service capabilities and enhance market penetration between Hong Kong, Macau, and mainland China[125] Product Development and Innovation - The company implements a "big product strategy" to focus on core advantages, driving performance with flagship products like Kyoto Nanchang's Chuanbei Loquat Syrup and Loquat Candy series, which dominate the "moistening lungs and cough relief" market[17] - The group plans to introduce new products, including Ginseng Capsules and Red Flower Pain Relief Patches, to enhance its competitive position in the health product ecosystem[37] - The company has approved 12 new traditional Chinese medicine products for market entry in 2024, supporting the innovation and modernization of traditional Chinese medicine[47] - The company is collaborating with renowned institutions for research and development of new rehabilitation products, with clinical validation expected to be completed by 2025[115] Digital Transformation and Technology - The company has implemented a digital transformation strategy to enhance operational efficiency and improve decision-making quality through the development of a smart management platform and digital marketing tools[23] - The company will leverage AI technology to enhance marketing strategies, providing personalized product information to consumers and improving overall efficiency in the healthcare sector[198] - The company is focused on building a comprehensive solution system that addresses health needs across the entire life cycle through strategic investments in high-growth sectors like innovative drugs and digital health[197] Training and Development - In the past year, the group conducted nearly 100 training sessions, with close to 4,000 participants, focusing on product knowledge, intellectual property protection, and leadership development[34] - Over 400 store managers received in-depth training on personnel management and marketing skills through the "Business School" program, enhancing sales and operational efficiency[66] Corporate Social Responsibility - The company ranked 11th in the Shenzhen Charity Donation List for 2023, with total donations amounting to approximately RMB 8.4389 million[143] - The company actively participated in charitable donations, including RMB 200,000 for disaster relief and RMB 650,000 for educational initiatives[134] - The company received recognition for its corporate social responsibility efforts, including awards for outstanding contributions[133] Market Trends and Economic Outlook - China's GDP reached RMB 134.91 trillion, marking a year-on-year growth rate of approximately 5.0%[41] - The global healthcare market is projected to grow from USD 52.4 billion in 2024 to USD 110.4 billion in 2025, driven by increased health awareness and demand for chronic disease treatments[196] - The group anticipates that the global economic growth rate will be 3.3% in 2025, with China's growth rate projected at 4.6%[37] Sales and Distribution - The sales revenue from the pharmaceutical distribution segment was approximately RMB 749.69 million, reflecting a year-on-year growth of 2.0%[49] - The company has successfully expanded the An Gong Niu Huang Wan product to over 30 chain pharmacies and more than 500 stores, marking a significant breakthrough[56] - The number of covered retail outlets increased to 264,953, including 209,831 chain pharmacies and 32,622 primary medical institutions[62] Intellectual Property and Innovation - The company holds a total of 4 valid invention patents, 24 utility model patents, and 13 software copyrights, indicating a strong focus on intellectual property development[115] Operational Efficiency - The company implemented a digital-driven strategy to enhance efficiency and reduce costs, optimizing its medical equipment operations and improving production efficiency in the mold workshop[114] - The company aims to enhance its global development strategy by strengthening international cooperation and promoting products in European markets, particularly through its subsidiary INNOPHARM in France[197]

Financial Performance - Revenue decreased by 1.6% to approximately RMB 1,061,082,000 (2023: RMB 1,078,659,000) [3] - Gross profit decreased by 3.6% to approximately RMB 270,446,000 (2023: RMB 280,665,000) [3] - Profit before tax increased by 1.7% to approximately RMB 95,519,000 (2023: RMB 93,886,000) [4] - Net profit increased by 20.9% to approximately RMB 74,466,000 (2023: RMB 61,594,000) [4] - Basic earnings per share increased by 12.1% to approximately RMB 7.22 (2023: RMB 6.44) [4] - Total comprehensive income for the year amounted to RMB 74,639,000 (2023: RMB 47,633,000) [5] Cash and Assets - Cash and cash equivalents increased to RMB 235,299,000 (2023: RMB 173,678,000) [6] - Non-current assets increased to RMB 807,800,000 (2023: RMB 749,034,000) [6] - Total equity increased to RMB 705,532,000 (2023: RMB 699,352,000) [7] Revenue Breakdown - Revenue from pharmaceutical products was RMB 749,692 thousand in 2024, compared to RMB 735,018 thousand in 2023, showing an increase of about 2.3% [20] - The total revenue from the pharmaceutical sector in China reached RMB 7,157 billion in 2024, with a year-on-year growth rate of 3.1% [39] - The sales revenue from the pharmaceutical distribution segment reached approximately RMB 749.69 million, representing a year-on-year growth of 2.0% [46] Expenses and Costs - The company incurred financing costs of RMB 13,282 thousand in 2024, up from RMB 11,519 thousand in 2023, representing an increase of approximately 15.3% [24] - Employee costs, including salaries and benefits, were RMB 132,850 thousand in 2024, slightly down from RMB 133,118 thousand in 2023 [24] - The company reported a foreign exchange loss of RMB 10,187 thousand in 2024, compared to a loss of RMB 4,966 thousand in 2023, indicating a significant increase in losses [22] Dividends - The board proposed a final dividend of HKD 0.0317 per share (2023: HKD 0.0338) [3] - The proposed final dividend for the year ended December 31, 2024, is HKD 0.0317 per share, compared to HKD 0.0338 per share in 2023, reflecting a decrease of approximately 6.2% [37] Market and Product Development - The company plans to launch the key product, Foci Jinhuo An Gong Niu Huang Wan, in November 2024, targeting chronic disease markets [48] - The company is focusing on optimizing its product structure and marketing strategies to adapt to market demands and consumer preferences [49] - The company expanded its coverage to 264,953 retail outlets, including 209,831 chain pharmacies, enhancing its market presence [50] Marketing and Consumer Engagement - The company activated its WeChat public account "Jin Huo Health Home" to enhance consumer brand awareness, focusing on product education and search engine optimization [51] - The company trained over 400 store managers in cities like Zhengzhou and Suzhou, enhancing their marketing skills and product knowledge to drive sales growth [52] - The company launched 25 offline experience events in 12 key cities, including Xiamen and Shanghai, to engage female consumers and boost product awareness [59] Corporate Governance and Compliance - The board of directors is committed to maintaining high standards of corporate governance and has adopted measures to enhance internal control systems and ongoing professional training for directors [141] - The audit committee confirmed that the accounting policies and financial statements prepared for the performance announcement comply with current accounting standards and listing rules [145] Strategic Initiatives - The company aims to enhance international cooperation and expand into South America and Africa as part of its globalization strategy [119] - The group plans to optimize its product matrix and improve sales strategies to drive revenue growth, focusing on high-growth potential products [122] - The group is committed to a "five-five strategy" to balance existing business growth with breakthroughs in emerging markets [122]

Financial Performance - Revenue for the first half of 2024 decreased by 4.9% to RMB 526.088 million compared to RMB 553.017 million in the same period last year[5] - Gross profit declined by 11.3% to RMB 137.260 million, with the gross margin dropping by 1.9 percentage points to 26.1%[5] - Net profit attributable to the company's owners decreased by 18.6% to RMB 30.716 million, with basic earnings per share falling by 18.5% to RMB 5.20 cents[5] - Revenue for the six months ended June 30, 2024, was approximately RMB 526.088 million, a decrease of RMB 26.929 million or 4.9% compared to the same period in 2023[46] - Gross profit margin decreased from 28.0% in 2023 to 26.1% in 2024 due to an increase in the average unit cost of sales[47] - Net profit for the six months ended June 30, 2024, was approximately RMB 45,620,000, a decrease of RMB 2,081,000 or 4.4% compared to the same period in 2023[55] - Profit attributable to owners of the company for the six months ended June 30, 2024, was approximately RMB 30,716,000, a decrease of RMB 7,011,000 or 18.6% compared to the same period in 2023[56] - Revenue for the six months ended June 30, 2024, was RMB 526.088 million, a decrease from RMB 553.017 million in the same period in 2023[99] - Gross profit for the six months ended June 30, 2024, was RMB 137.260 million, down from RMB 154.689 million in the same period in 2023[99] - Operating profit for the six months ended June 30, 2024, was RMB 57.929 million, compared to RMB 60.205 million in the same period in 2023[99] - Net profit attributable to the company's owners for the six months ended June 30, 2024, was RMB 30.716 million, down from RMB 37.727 million in the same period in 2023[99] - Basic earnings per share for the six months ended June 30, 2024, were RMB 5.20 cents, compared to RMB 6.38 cents in the same period in 2023[99] - Total comprehensive income for the six months ended June 30, 2024, was RMB 57.343 million, compared to RMB 61.468 million in the same period in 2023[100] - Pre-tax comprehensive profit decreased to RMB 55,466 thousand in 2024 from RMB 57,655 thousand in 2023, a decline of 3.8%[112] - Adjusted EBITDA for the company was RMB 88,591 thousand in 2024, down from RMB 91,209 thousand in 2023, a decrease of 2.9%[111] - Basic earnings per share for the six months ended June 30, 2024, was RMB 0.052, down from RMB 0.064 in the same period in 2023[120][121] Liquidity and Capital Structure - The company's liquidity ratios weakened, with the current ratio dropping by 9.4% to 1.15 and the quick ratio decreasing by 6.9% to 0.95[5] - The capital gearing ratio improved significantly, decreasing by 12.3 percentage points to 11.8%[5] - Cash and cash equivalents as of June 30, 2024, were RMB 287,235,000, an increase from RMB 173,678,000 as of December 31, 2023[57] - Total borrowings as of June 30, 2024, were approximately RMB 375,461,000, compared to RMB 342,130,000 as of December 31, 2023[59] - Capital gearing ratio decreased to 11.8% as of June 30, 2024, from 24.1% as of December 31, 2023, primarily due to increases in cash and cash equivalents and total equity[60] - Capital expenditures for the six months ended June 30, 2024, were approximately RMB 54,919,000, compared to RMB 87,368,000 for the same period in 2023[62] - Net cash generated from operating activities increased to RMB 163,362 thousand in the first half of 2024, up from RMB 88,758 thousand in the same period of 2023[103] - The company's cash flow from financing activities was RMB 24,194 thousand, up from RMB 18,493 thousand in the same period of 2023[103] - Total capital commitments as of June 30, 2024, were RMB 87,706 thousand, compared to RMB 141,678 thousand as of December 31, 2023[138] Market and Industry Trends - China's pharmaceutical exports reached USD 52.579 billion in the first half of 2024, with traditional Chinese medicine exports growing to USD 2.657 billion[7] - The Chinese healthcare market is projected to grow from RMB 55 trillion in 2023 to over RMB 110 trillion by 2030, driven by increased health awareness and spending[7] - Online retail sales in China grew by 9.8% to RMB 7.0991 trillion in the first half of 2024, with healthcare products benefiting from this trend[7] - The Chinese traditional medicine market is expected to exceed 500 billion yuan in 2024, with 6 new traditional medicine drugs approved for market in the first half of the year[9] - Traditional medicine product exports in the first half of 2024 reached 2.657 billion USD, a slight decrease of 6.99% year-on-year, but exports of proprietary Chinese medicines and health products are expected to grow by over 30% for the full year[9] - The O2O direct delivery pharmacy market reached 4.1 billion yuan in May 2024, a year-on-year increase of 21%, accounting for 4.2% of the offline retail pharmacy channel[11] - The retail pharmacy market size in China was 2.178 billion yuan from January to May 2024, a year-on-year decrease of 3.7%[10] - The B2C e-commerce segment in the OTC retail market has a three-year compound growth rate of 47.1% as of 2023[14] - The O2O pharmaceutical market size reached nearly 3.2 billion yuan in March 2024, with a year-on-year growth of 25%, and direct delivery store size grew by 41%[16] - The global medical equipment market is expected to grow at a CAGR of 8.6% to reach $1,077.6 billion by 2028, driven by aging populations and rising chronic disease rates[29] - The market size of China's medical AI industry is projected to reach RMB 311 billion by 2032, with a compound annual growth rate (CAGR) of 46.6% from 2022 to 2032[69] - Generative AI is expected to bring economic value of $60 billion to $110 billion annually to the pharmaceutical and medical industries[69] - The company expects the Chinese health supplement market to grow to RMB 4,237 billion by 2027, driven by aging populations and increased health awareness[67] Product and Brand Performance - The company's Kyoto Ninjiom Pei Pa Koa sales saw significant growth due to its natural herbal ingredients and effective marketing strategies[12] - The Chinese gastrointestinal drug market size was approximately 7.5 billion yuan in the first quarter of 2024, with the company's Seirogan product expected to stabilize and grow as supply issues are resolved[12] - The company's Jinhuo Yimada Red Flower Oil, containing valuable traditional Chinese medicine ingredients, saw increased brand influence through sports event collaborations[12] - The company's coverage network increased by 9,128 outlets, totaling 162,719 chain pharmacies, 23,165 primary medical institutions, 12,570 hospitals and clinics, and 39 convenience stores and supermarkets[13] - The company strengthened cooperation with top 100 chain stores and regional chain stores, signing annual cooperation agreements to integrate resources and enhance sales growth[15] - The company actively embraced consumer trends such as "She Economy," "New Chinese Style," and "Self-Pleasure," enhancing brand penetration through online and offline activities[17] - The company organized various themed events like Women's Day flower arrangement and Mother's Day promotions, which significantly increased store traffic and sales[18] - The company leveraged popular IPs and TV shows to expand brand influence, with Kyoto Nin Jiom's brand value reaching 4.815 billion yuan, ranking 18th in the 2023 Health Industry Brand Value List[19] - The company participated in sports events and public welfare activities, such as marathons and street football tournaments, to enhance brand awareness and broaden usage scenarios[20][21] - The sales of the cardiovascular category in the offline market ranked third, with sales reaching 8.401 billion yuan in the first quarter of 2024, and the Angong Niuhuang Pill category is expected to exceed 8 billion yuan in sales for the full year of 2024[22] - The company's Foshan Jinhua Angong Niuhuang Pill completed packaging design, product filing, and raw material procurement, and is set to launch in the second half of the year[22] - The company has relaunched several products, including Jinhua American Ginseng Capsules, Jinhua Zhuangyao Jianshen Tablets, Jinhua Cold Clear Capsules, and Jinhua Red Flower Patches[23] - The company introduced two new INNOPHARM fish oil products, containing 95% Omega-3, with a 3:2 EPA:DHA ratio, and plans to focus on promoting these products[24] - The company launched two major products in 2024: Foci Jinhuo Angong Niuhuang Pill and INNOPHARM Fish Oil, targeting high-potential markets with large capacity and high customer unit prices[70] Operational and Strategic Initiatives - The company optimized its e-commerce platforms, such as Tmall Global, JD.com, and Kaola, to improve ROI conversion rates[25] - The company is leveraging AI and big data to enhance personalized shopping experiences and build a comprehensive marketing ecosystem[26] - The company has strategically planned the promotion of INNOPHARM fish oil, including setting up flagship stores on platforms like Tmall, JD.com, and Douyin, and leveraging the 2024 Paris Olympics for marketing[27] - The company is focusing on creating a unique store experience by selecting high-quality OTC products and promoting items like Tianwang Buxin Dan, which has seen sales growth[28] - Dongdixin's sales in both domestic and international markets continued to rise, with high-margin products such as professional desktop therapy devices showing significant growth compared to the previous year[29] - Dongdixin successfully developed and launched a new product, the itch relief device, which achieved a sales breakthrough in the European market and has the potential to become a star product[29] - Dongdixin expanded its market presence in the Middle East, Southeast Asia, and Hong Kong, signing multiple future orders and hosting over 10 international client visits in the first half of 2024[30] - Dongdixin upgraded its smart manufacturing and quality service systems, collaborating with domestic AI research institutes and increasing investment in precision processing centers to improve production efficiency and reduce labor costs[30] - The company's self-branded NU-TEK achieved sales exceeding 10 million yuan in the Chinese market, covering over 30 provinces and collaborating with approximately 200 clients[31] - Dongdixin secured a strategic partnership with Germany's ZIMMER, completing several batches of product deliveries and benefiting from the national import substitution policy[31] - Dongdixin added 1 new invention patent, bringing the total to 4, and launched a new portable shockwave product at the 89th CMEF exhibition, receiving positive feedback and generating interest from potential clients[32] - The Longde Health Industrial Park obtained its property rights certificate, positioning it as a key hub for traditional Chinese medicine research and innovation in the Greater Bay Area[33] - The company actively sought investment opportunities in the health industry, analyzing over 69 projects and engaging with more than 10 institutions and platforms, with a focus on innovative drugs, cell therapy, and health medical equipment[34] - The company acquired a 6.35% stake in Japan's Taiko Pharmaceutical Co., Ltd. (stock code: 4574.JP), strengthening its industrial layout[34] - The company holds over 40% of the shares in Foci Pharmaceutical Co., Ltd. (Hong Kong Foci), which has rapidly increased its market share in product sales[34] - The company signed a strategic cooperation framework agreement with Shaanxi Pharmaceutical Group Traditional Chinese Medicine Industry Investment Co., Ltd. to ensure the quality and supply of traditional Chinese medicine raw materials[34] - The company implemented a stock incentive plan, granting a total of 6,648,000 reward shares to 86 selected participants, accounting for approximately 1.07% of the total issued shares[35] - The company established a scientific evaluation process and system for new product introduction, aiming to improve the success rate of new products[36] - The company plans to focus on strategic reviews and dynamic management to align with its five-year strategic goals and continue innovation in health products[68] - Longde Health Industrial Park has obtained the relevant real estate rights certificate and aims to become a national-level medical industry incubation and investment base in the Greater Bay Area[71] - The Greater Bay Area is expected to see increased demand for cross-border medical services, particularly in primary and rehabilitation healthcare[71] Corporate Governance and Shareholding - Zhao Lisheng, the company's director, holds a 3.65% direct stake and is deemed to hold a 47.84% stake through controlled entities, totaling 388,260,250 shares[75] - Chen Leshen, another director, holds a 0.07% direct stake and is deemed to hold a 51.49% stake through spouse and controlled entities, totaling 320,980,250 shares[75] - Chen Leshen holds 410,980,250 shares of the company, including 448,000 shares in her personal name and 90,000,000 shares held by Jin Chen, of which she is the beneficial owner[77][82] - Zhao Lisheng, Chen Leshen's spouse, holds 22,720,000 shares in his personal name and 297,812,250 shares held by Jin Guo, of which he is the beneficial owner[77][82] - Jin Guo holds 297,812,250 shares, representing 47.84% of the company's total issued share capital[80] - Jin Chen holds 90,000,000 shares, representing 14.46% of the company's total issued share capital[80] - Sinopharm Healthcare Fund L.P. holds 49,635,750 shares, representing 7.97% of the company's total issued share capital[80] - Sinopharm Capital Limited controls 1.64% of the interests in Sinopharm Healthcare Fund L.P.[82] - Sun Hill Capital Investments Limited controls 100% of Sinopharm Capital Limited and 1.64% of Sinopharm Healthcare Fund L.P.[82] - Wu Aimin indirectly controls 70% of Sun Hill Capital Investments Limited, 100% of Sinopharm Capital Limited, and 1.64% of Sinopharm Healthcare Fund L.P.[82] - The maximum number of shares that can be issued under the new share option plan is 622,500,000 shares, representing 10% of the total issued shares as of the adoption date (August 20, 2021)[84] - As of the reporting date, 62,250,000 shares are available for issuance under the new share option plan, representing 10% of the total issued shares[84] - The share incentive plan has a maximum limit of 46,000,000 shares, representing approximately 7.39% of the total issued shares as of the reporting date[85] - During the reporting period, the trustee purchased a total of 35,108,000 shares and 6,000,000 shares in the market for the share incentive plan[85] - A total of 6,648,000 reward shares were granted to 86 selected participants under the share incentive plan, representing approximately 1.07% of the total issued shares[85] - The closing price of the shares on the grant date was HK$0.55 per share, and the average closing price for the five business days prior to the grant date was HK$0.53 per share[85] - The share incentive plan was adopted on August 27, 2019, and will remain valid until August 26, 2025[86] - During the reporting period, 304,000 reward shares were granted to Mr. Zhao Lisheng, 256,000 to Ms. Chen Leshen, and 172,000 to Mr. Zhou Xuhua[87] - A total of 5,496,000 reward shares were granted to employees and other grantees (excluding directors) during the reporting period[87] - The company declared a final dividend of HK 3.38 cents per share for the year ended December 31, 2023, totaling approximately HK$ 21.041 million (RMB 19.049 million), paid on June 30, 2024[90] - The company did not declare any interim dividend for the six months ended June 30, 2024[90] - The company's public float remained at least 25% of the issued share capital during the reporting period[89] Social Responsibility and Public Welfare - The company donated a total of approximately RMB 8.42 million in cash and materials during the reporting period, focusing on rural revitalization, education, health, disaster relief, and care for veterans and monks[37] - The company donated 5 AED defibrillators and funded the construction of a "Reading Bar" at Shantou No. 12 Middle School through the Jinhuo Care Health Foundation[39] - The company donated RMB 200,000 for flood relief efforts in Meizhou, Guangdong Province, specifically for the reconstruction of a local school[39] - The company continued its "Jiexia Anju" large-scale public welfare activity, donating medicines to over 70 temples across the country to support the health of monks and the public[40] Asset and Liability Management - Total assets increased to RMB 936,933 thousand as of June 30, 2024, compared to RMB 874,118 thousand at the end of 2023[101] - Net current assets decreased to RMB 87,316 thousand from RMB

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 526,088 thousand, a decrease of 4.9% compared to RMB 553,017 thousand for the same period in 2023[1] - Gross profit decreased by 11.3% to RMB 137,260 thousand, with a gross margin of 26.1%, down from 28.0%[1] - Profit attributable to owners of the company was RMB 30,716 thousand, representing an 18.6% decline from RMB 37,727 thousand in the previous year[1] - Basic earnings per share decreased to RMB 5.20, down 18.5% from RMB 6.38[1] - Total comprehensive income for the period was RMB 57,343 thousand, compared to RMB 61,468 thousand in the prior year[3] - The adjusted EBITDA for the reporting period was RMB 88,591 thousand, compared to RMB 91,209 thousand for the same period last year, reflecting a decrease of 2.9%[15] - The pre-tax profit for the six months ended June 30, 2024, was RMB 30,716,000, a decrease of 18.5% compared to RMB 37,727,000 for the same period in 2023[18] - Total financing costs amounted to RMB 9,316,000, down 1.5% from RMB 9,460,000 in the previous year[18] - The company reported a total income tax expense of RMB 9,930,000 for the six months ended June 30, 2024, down from RMB 10,892,000 in the previous year[19] - The company’s effective tax rate for the period was approximately 16.5%, consistent with the previous year’s rate[20] Assets and Equity - Cash and cash equivalents increased to RMB 287,235 thousand from RMB 173,678 thousand, indicating improved liquidity[4] - Non-current assets totaled RMB 849,617 thousand, up from RMB 749,034 thousand at the end of 2023[5] - The company's total equity increased to RMB 756,695 thousand from RMB 699,352 thousand, reflecting a stronger financial position[6] - Total assets as of June 30, 2024, were RMB 1,059,323 thousand, an increase from RMB 943,443 thousand as of December 31, 2023[15] - Trade receivables totaled RMB 241,691,000 as of June 30, 2024, down from RMB 276,959,000 at the end of 2023[24] - Trade payables increased to RMB 152,315,000 as of June 30, 2024, compared to RMB 148,663,000 at the end of 2023, indicating a rise of 2.2%[25] Market and Sales Performance - Sales of pharmaceutical products amounted to RMB 356,306 thousand, down from RMB 366,196 thousand in the previous year, representing a decline of 2.4%[13] - Sales of healthcare products were RMB 55,876 thousand, a significant decrease of 28.2% from RMB 77,850 thousand in the prior year[13] - The manufacturing and sales of electrotherapy and physiotherapy equipment generated revenue of RMB 113,906 thousand, an increase of 4.3% compared to RMB 108,971 thousand in the previous year[13] - The retail market for pharmaceuticals in China was valued at ¥923.3 billion in 2023, with a growth rate of 5.8%, marking the lowest growth rate in history[28] - The O2O (Online to Offline) pharmacy market reached nearly ¥4.1 billion by May 2024, with a year-on-year growth of 21%[28] Research and Development - Research and development expenses increased to RMB 6,742,000, up 4.8% from RMB 6,433,000 in the prior year[18] - The company has added one new effective invention patent, bringing the total to four, and has launched a portable shockwave product at the 89th CMEF exhibition, receiving positive feedback[44] - Dongdixin continues to collaborate with renowned rehabilitation hospitals and research institutions to develop new products, enhancing its research and development capabilities[44] Corporate Governance and Social Responsibility - The board of directors is committed to high standards of corporate governance and has taken measures to strengthen internal controls and professional training for directors[87] - The audit committee was established on November 5, 2010, to oversee financial reporting and internal controls[89] - The company donated approximately RMB 8.42 million in cash and materials during the reporting period, actively fulfilling its corporate social responsibility[50] Strategic Initiatives and Future Plans - The company plans to continue expanding its market presence in China and Hong Kong, focusing on the distribution of imported pharmaceuticals and healthcare products[8] - The company plans to conduct strategic reviews every six months to adapt to internal and external environmental changes, ensuring alignment with its strategic goals and enhancing product and service quality through continuous technological innovation[77] - The company is focusing on expanding its traditional Chinese medicine business to meet the growing demand in the aging population and chronic disease treatment markets[28] - The group plans to leverage the 2024 Paris Olympics for marketing INNOPHARM fish oil, targeting young and high-end consumers through social media[39]

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 1,078,659,000, representing a 12.6% increase from RMB 957,701,000 in 2022[9] - Gross profit for the same period was RMB 280,665,000, a slight increase of 1.1% compared to RMB 277,627,000 in 2022[9] - Profit attributable to owners of the company rose by 67.5% to RMB 38,096,000 from RMB 22,741,000 in the previous year[9] - Basic earnings per share increased by 71.7% to RMB 6.44 from RMB 3.75 in 2022[9] - The group’s revenue for the year was approximately RMB 1,078,659,000, an increase of about RMB 120,958,000 or 12.6% compared to RMB 957,701,000 for the previous year, primarily driven by increased sales of Kyoto Nishikyo's medicinal syrup[118] - The group’s cost of sales was approximately RMB 797,994,000, an increase of about RMB 117,920,000 or 17.3% compared to RMB 680,074,000 for the previous year, attributed to higher sales volume[119] - Profit before tax for the year was approximately RMB 93,886,000, an increase of about 26,302,000 or 38.9% from RMB 67,584,000 in the previous year[126] - Net profit for the year was approximately RMB 61,594,000, an increase of about RMB 18,052,000 or 41.5% from RMB 43,542,000 in the previous year[128] Dividends and Shareholder Returns - The company proposed a final dividend of HKD 3.38 per share, up 36.8% from HKD 2.47 per share in the prior year[9] - The proposed final dividend is HKD 0.0338 per share, totaling approximately HKD 21,041,000 (about RMB 19,049,000), representing a total payout ratio of about 50.0% of the profit attributable to shareholders for the year[158] Market Expansion and Product Development - The company is focusing on expanding its star product series and accelerating overseas business deployment in response to market opportunities[13] - The company is actively seeking investment opportunities in high-growth sectors such as innovative drugs, cell therapy, and health medical devices[149] - The company plans to accelerate cooperation with Southeast Asia and countries along the Belt and Road Initiative, enhancing product promotion in the European market[149] - The company is investing in new product development, with a budget allocation of 10 million for research and innovation initiatives[171] - The company plans to introduce dual-brand products in collaboration with well-known domestic enterprises, targeting the increasing demand for cardiovascular health products as the elderly population is projected to rise to 20.3% by 2030[64] Strategic Initiatives and Collaborations - The company is developing a biomedicine platform in the Greater Bay Area, with the Longde Industrial Park in Shenzhen set to become a key milestone in its internationalization strategy[27] - The company is collaborating with Lanzhou Foci Pharmaceutical to develop a dual-brand product series, enhancing its product offerings[21] - The company has established strategic cooperation with Germany's ZIMMER for the production of three registered products, enhancing its market presence[92] - The strategic cooperation framework agreement with Shaanxi Pharmaceutical Holdings Group focuses on marketing, R&D, and production, including the development of products using local medicinal materials[101] Marketing and Brand Development - The company is actively sponsoring several large-scale marathon events to enhance brand reputation and market penetration among sports enthusiasts[21] - The company is leveraging innovative marketing strategies to transform consumers from passive recipients to active participants in brand promotion[59] - The company has implemented a market sales tracking system (SMART) to monitor pricing and ensure fair access to essential medications[62] - The company has implemented aggressive marketing strategies, including partnerships with popular TV shows, resulting in a brand value of RMB 4.815 billion, ranking 18th in the 2023 Health Industry Brand Value List[67] Employee Engagement and Corporate Governance - The company is committed to enhancing employee morale through equity incentives and plans to attract more talented professionals to support its long-term development[34] - Over 30 training sessions were held, with more than 1,000 participants, aimed at enhancing employee professional skills and market sensitivity[108] - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee, to oversee specific areas[195] - The board consists of six members, including one female director and five male directors, reflecting a commitment to diversity[191] Industry Trends and Economic Outlook - The "Silver Economy" in China is projected to reach approximately RMB 7 trillion in 2023, accounting for about 6% of the overall GDP, with expectations to grow to RMB 9 trillion in 2024 and RMB 12 trillion by 2026[20] - The global health market is projected to reach $180 billion by 2024, driven by increased demand from millennials and Generation Z consumers for healthier lifestyles[149] - The Chinese health food market reached RMB 394.68 billion in 2022, with a year-on-year growth of 3.0%, and is expected to grow to RMB 423.7 billion by 2027[149] Social Responsibility and Community Engagement - The company donated nearly RMB 10 million in cash and materials for social contributions, including RMB 800,000 for flood relief efforts[103] - The company has engaged in various community activities, including support for veterans, to strengthen its brand image and consumer relationships[69]

Financial Performance - The company's annual profit attributable to shareholders for 2023 was RMB 38,096 million, compared to RMB 22,741 million in 2022, representing an increase of 67.5%[6] - Revenue increased by 12.6% to approximately RMB 1,078,659,000 (2022: RMB 957,701,000) [64] - Net profit for the year increased by 41.5% to approximately RMB 61,594,000 (2022: RMB 43,542,000) [64] - Profit before tax increased by 38.9% to approximately RMB 93,886,000 (2022: RMB 67,584,000) [64] - Basic earnings per share increased by 71.7% to approximately RMB 6.44 (2022: RMB 3.75) [64] - The company plans to distribute a final dividend of HKD 3.38 per share for the year ending December 31, 2023, up from HKD 2.47 in 2022, pending shareholder approval[33] Sales and Market Trends - The total sales of Chinese and Western medicines reached RMB 671 billion in 2023, with a year-on-year growth rate of approximately 5.1%[28] - The retail pharmacy market sales in the first half of 2023 amounted to RMB 268.5 billion, representing an 8.2% growth compared to the same period last year[28] - The distribution segment's sales increased by 23.8% to approximately RMB 735,018,000, driven by high demand for cough and respiratory medications post-COVID[39] - The health products and daily chemicals segment recorded a sales increase of 7.9% to approximately RMB 102,562,000, driven by heightened consumer health awareness post-pandemic[151] - The sales revenue of Qi Blood Supplement products in the domestic retail market reached RMB 6.77 billion in 2023, representing a year-on-year growth of 20%[107] Assets and Liabilities - Non-current assets totaled RMB 749,034 thousand, an increase of 17.3% from RMB 639,043 thousand in 2022[68] - Current assets amounted to RMB 463,532 thousand, a decrease of 14.5% from RMB 541,741 thousand in 2022[68] - Total equity increased slightly to RMB 699,352 thousand from RMB 694,215 thousand in 2022[71] - The company reported a total asset minus current liabilities of RMB 874,118 thousand, an increase of 21.1% from RMB 721,622 thousand in 2022[68] Research and Development - Research and development costs increased to RMB 18,840 thousand, up 21.5% from RMB 15,519 thousand in the previous year[88] - The company successfully applied for government subsidies under the R&D cash rebate program, aimed at encouraging private sector investment in R&D[91] - The company is actively developing new products such as Western Ginseng Capsules and is focusing on the aging population's demand for cardiovascular-related products[107] Marketing and Brand Strategy - The company successfully established brand influence in the sports market for its key product, Jinhuayi Ma Da Zheng Honghua Oil, through significant marketing investments[41] - The company implemented aggressive marketing strategies, including sponsorship of popular TV shows, resulting in a significant increase in brand visibility[104] - The company is leveraging short video platforms like Douyin and Kuaishou to engage younger consumers and promote products through consumer-led marketing strategies[110] International Expansion - The total investment amount by Chinese pharmaceutical companies in overseas projects reached USD 14.3 billion in 2023, highlighting a significant increase in global expansion efforts[15] - The company plans to accelerate cooperation with Southeast Asia and countries along the "Belt and Road" initiative, as well as strengthen product promotion in the European market in 2024[142] - The company has successfully entered the Japanese market through strategic investments, aligning with its industrial layout and enhancing product offerings[186] Supply Chain and Operations - The company has strengthened its supply chain over the years, covering 220,000 retail outlets to enhance pharmacy traffic[23] - The implementation of volume-based procurement policies has improved procurement efficiency and reduced drug costs, benefiting patients[27] - The company faced supply shortages for its flagship product due to local material supply imbalances, leading to a slight decline in sales[41] Social Responsibility - The company has made significant contributions to social responsibility, donating nearly RMB 10 million in cash and materials during the year[169] - The company made charitable donations totaling RMB 1.05 million to support flood relief efforts in the Beijing-Tianjin-Hebei region and provided emergency supplies after an earthquake in Gansu[189] Customer Engagement - The company is enhancing cooperation with key accounts (KA) to improve customer loyalty and satisfaction through dedicated follow-up teams[109] - The integration of online and offline channels has improved conversion rates for key products, enhancing brand loyalty and customer engagement[173] Future Outlook - The Longde Health Industry Park is expected to officially commence operations in November 2024, following successful acceptance on January 18, 2024[121] - The company is preparing to launch dual-brand products in collaboration with well-known domestic enterprises to meet the growing demand in an aging society[107]

Revenue Growth - The company's revenue for the period saw significant growth, particularly driven by the strong performance of the Kyoto Nan Chai Han Chuan Bei Pi Pa Gao product, which experienced substantial revenue increase due to effective marketing strategies targeting post-COVID recovery consumers [1]. - The sales of the company's main products, including the Kyoto Nan Chai Han series and the La Ba brand Zheng Lu Wan, showed a notable increase, with the Kyoto Nan Chai Han series achieving a significant year-on-year growth [2]. - The company reported a 32% increase in sales performance compared to the same period last year, attributed to the implementation of an employee incentive plan that awarded 3.504 million shares to selected participants [14]. - The company's revenue for the six months ended June 30, 2023, was RMB 553.017 million, representing a 31.8% increase compared to RMB 419.647 million in the same period of 2022 [102]. Market Expansion - The company expanded its market coverage to approximately 150,000 chain and independent pharmacies, 20,000 primary healthcare institutions, and over 10,000 hospitals and clinics, enhancing its distribution network [4]. - The company has successfully entered over 150 top-tier hospitals and numerous outpatient and rehabilitation therapy institutions in China through bidding, covering more than 200 domestic clients across over 20 provinces [17]. - The company has continued to expand its market presence, obtaining promotional cooperation authorization in five provinces, including Shanghai and Henan [87]. Product Development and Innovation - The company is actively developing the Jin Huo Long De Life Health Industry Park, focusing on innovation in traditional Chinese medicine and creating a collaborative ecosystem for research and development [13]. - The company has accumulated 3 valid invention patents, 25 utility model patents, and 1 design patent during the reporting period, indicating ongoing innovation efforts [124]. - The company is actively developing new products, including probiotics and DHA products, with plans for the launch of new brands [148]. Marketing Strategies - The company has established a comprehensive marketing ecosystem through e-commerce platforms, integrating public and private traffic promotion to enhance product sales [11]. - The company’s marketing strategies have successfully engaged younger consumers through collaborations with popular media platforms, resulting in significant brand exposure [131]. - The company conducted various offline promotional activities, including community events and outdoor advertising, to enhance brand awareness and engage consumers [114]. Financial Performance - The gross profit for the same period was RMB 154.689 million, with a gross margin of 28.0%, down from 31.9% in the previous year, indicating a decrease of 3.9 percentage points [102]. - The net profit attributable to the owners of the company increased by 55.8% to RMB 37.727 million, compared to RMB 24.213 million in the prior year [102]. - The company’s basic earnings per share for the first half of 2023 were RMB 6.38, a 59.9% increase from RMB 3.99 in the same period of 2022 [102]. Corporate Social Responsibility - The company donated over RMB 3 million in cash and materials during the reporting period, receiving multiple honors for its charitable contributions [55]. - The company actively participated in community activities to support veterans and disadvantaged groups, providing health screenings and disease prevention services [57]. - The company continues to fulfill its corporate mission of serving the public and contributing to social responsibility [59]. Strategic Partnerships - The company has launched a strategic partnership with Shanghai Golden Partner Biotechnology Co., Ltd. to introduce dual-brand glucosamine products, targeting the growing demand for orthopedic products in an aging society [30]. - The company is leveraging its capital market advantages to form strategic alliances with upstream and downstream partners, enhancing product sales and market presence, particularly with increased holdings in Hong Kong Fo Chi Pharmaceutical [16]. Employee Development - The company emphasizes employee development and training, conducting numerous training sessions that reached nearly 1,000 participants, fostering a culture of continuous learning and growth [15]. - The company is enhancing employee training to improve overall capabilities and operational efficiency [143]. Market Trends - The overall retail pharmacy market in China saw a sales increase of RMB 180.4 billion in the first five months of 2023, representing a year-on-year growth of 10.81% [84]. - The e-pharmacy sector is experiencing rapid growth, with the market size reaching approximately RMB 97.8 billion, reflecting a year-on-year increase of 32.7% [109]. - The pharmaceutical distribution industry is entering a new development phase characterized by scaling, digitization, and lean management, driven by regulatory improvements and technological innovations [83].

Financial Performance - Revenue for the year ended December 31, 2022, was RMB 957.7 million, representing a 13.0% increase from RMB 847.4 million in 2021[11] - Gross profit for the same period was RMB 277.6 million, a 5.3% increase compared to RMB 263.6 million in 2021[11] - Net profit attributable to the owners of the company decreased by 25.0% to RMB 22.7 million from RMB 30.3 million in 2021[11] - Basic earnings per share for 2022 was RMB 3.75, down 25.0% from RMB 5.00 in 2021[11] - The company reported a liquidity ratio of 1.15, down 14.8% from 1.35 in 2021[11] - The group's revenue for the year was approximately RMB 957,701,000, an increase of about RMB 110,315,000 or 13.0% compared to RMB 847,386,000 for the previous year[102] - The group's sales cost for the year was approximately RMB 680,074,000, an increase of about RMB 96,286,000 or 16.5% compared to the previous year[103] - Gross profit for the year was approximately RMB 277,627,000, an increase of about RMB 14,029,000 or 5.3%, with a gross margin decrease from 31.1% to 29.0%[103] - The net profit for the year was approximately RMB 43,542,000, a decrease of about RMB 7,669,000 or 15.0% compared to the previous year[112] Market Expansion and Product Development - The company achieved a 175% increase in sales of its prescription drug, indicating successful market penetration strategies[20] - The company is focusing on expanding its OTC sales channels for prescription drugs, establishing a professional marketing team[19] - In 2022, the company actively expanded its product portfolio, introducing new products such as the Lactobacillus probiotics for women and acquiring the online and offline distribution rights for Life's DHA in China[28] - The company completed the acquisition of French company Innopharm S.A. to pave the way for future overseas market development and to introduce high-quality European health food products[28] - The company is focused on identifying investment or acquisition opportunities to enhance its existing business network and achieve its strategic goals[35] - The company plans to leverage opportunities in the pharmaceutical e-commerce sector, enhancing its product offerings and sales through its cross-border e-commerce platform[35] - The company launched 33 products in collaboration with Hong Kong retailers, enhancing brand recognition and sales in the Hong Kong market[53] - The company is set to launch its Innopharm fish oil product, which has completed intellectual property registration and product sampling, aiming to leverage its marketing strategy for rapid consumer service[143] Operational Efficiency and Strategic Initiatives - The company is enhancing its research and development capabilities, collaborating with renowned universities to develop new technologies for pain physical therapy[31] - The company is implementing a dynamic strategic analysis and decision-making mechanism to adapt to the complex VUCA environment, ensuring orderly progress of its sub-strategies[24] - The company is committed to enhancing its operational efficiency through the automation of production lines at its subsidiary, Dongdixin Technology Co., Ltd., achieving balanced development in key markets[31] - The company has implemented a new operational model, allowing frontline staff to make decisions for quicker market responses, which has improved the ranking of its flagship store on Tmall International to the top 20[32] - The company is committed to improving its e-commerce operations and product offerings to respond quickly to market changes and enhance sales contributions[144] - The company implemented "Lean Production 6S" management, enhancing production efficiency and reducing costs through automation and digital manufacturing systems[74] - The group developed nearly 100 sales, customer, and team management reports through the SMART system, enhancing operational efficiency and management modernization[88] Market Trends and Consumer Behavior - Chronic disease medication demand is expected to grow due to the aging population, with a reported chronic disease prevalence rate of 23% in China[19] - The company reported a significant increase in demand for adult immunity products in Hong Kong, leading to successful promotions and sales growth despite challenges in the children's probiotics market[29] - The company recognizes the increasing demand for quality health products in the post-pandemic era, which presents significant growth opportunities for its branded products[35] - The company anticipates that the demand for four types of medicines will continue to grow as consumers adapt to new healthcare behaviors post-pandemic[46] - The B2C pharmaceutical e-commerce market in China reached RMB 96.1 billion in 2022, growing by 27.0% year-on-year, with December alone seeing a 68.4% increase to RMB 11.3 billion[144] - The offline retail pharmacy market maintained a dominant share of 85% in 2022, amounting to RMB 542.1 billion, which is a 10.2% increase, the highest growth in five years[144] Corporate Governance and Leadership - The company was co-founded by Zhao Lisheng and Chen Leshan, with Zhao serving as the executive director and chairman, responsible for overall strategic planning and business management[155] - Chen Leshan, also an executive director, focuses on financial planning and human resources management, bringing over 25 years of experience in the pharmaceutical industry[156] - The company has a strong leadership team with extensive experience in the pharmaceutical sector, including Zhou Xuhua, who has been the general manager since 2009 and has 25 years of industry experience[157] - The board consists of six directors, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[182] - The company has complied with the corporate governance code, with a commitment to high standards and shareholder value creation[177] - The board believes that increasing diversity at the board level is crucial for achieving strategic goals and sustainable development[187] Social Responsibility and Community Engagement - The group donated over RMB 7 million to various social causes, including pandemic relief and environmental support, during the year[91] - The group actively participated in environmental projects, including donations for sponge city construction and habitat protection[95] - The group was ranked 52nd in the Shenzhen charity donation list with a total donation of RMB 503,000[95] Future Outlook - The company has set a revenue guidance of $500 million for the next fiscal year, indicating a projected growth of 10%[165] - Future outlook remains positive, with a commitment to sustainable growth and shareholder value enhancement[165] - The company aims to expand its market presence internationally, particularly in the Belt and Road Initiative regions, leveraging its traditional Chinese medicine products[135]