Financial Performance - The group's revenue decreased by 2.3% from RMB 1,566.7 million in 2023 to RMB 1,531.1 million in 2024[3]. - The group's gross profit increased by 2.2% from RMB 668.2 million in 2023 to RMB 683.2 million in 2024[3]. - The group's net profit rose by 19.4% from RMB 121.8 million in 2023 to RMB 145.4 million in 2024[3]. - Basic earnings per share increased by 8.3% from RMB 0.12 in 2023 to RMB 0.13 in 2024[3]. - Total comprehensive income for the year amounted to RMB 95.4 million, down from RMB 203.8 million in the previous year[4]. - Other income for the year was RMB 52.3 million, compared to RMB 44.7 million in 2023[4]. - The group reported a pre-tax profit of RMB 170.3 million, compared to RMB 213.1 million in 2023[4]. - The total comprehensive income attributable to the owners of the company was RMB 138.5 million, down from RMB 151.6 million in the previous year[4]. Assets and Liabilities - Total non-current assets increased to RMB 524,214 thousand in 2024 from RMB 423,976 thousand in 2023, representing a growth of 23.6%[5]. - Current assets decreased slightly to RMB 1,106,929 thousand in 2024 from RMB 1,134,929 thousand in 2023, a decline of 2.5%[5]. - Total equity attributable to owners increased to RMB 1,110,448 thousand in 2024 from RMB 1,006,443 thousand in 2023, reflecting a growth of 10.3%[6]. - Cash and cash equivalents decreased significantly to RMB 114,427 thousand in 2024 from RMB 214,008 thousand in 2023, a drop of 46.6%[5]. - Total liabilities decreased to RMB 1,182,661 thousand in 2024 from RMB 1,098,215 thousand in 2023, a reduction of 7.7%[6]. - Deferred tax liabilities decreased to RMB 16,280 thousand in 2024 from RMB 24,725 thousand in 2023, a decline of 34.2%[6]. Revenue Breakdown - Revenue from pharmaceutical product sales reached RMB 737,526 thousand in 2024, compared to RMB 735,625 thousand in 2023, showing a slight increase[16]. - Revenue from medical equipment and supplies sales was RMB 829,147 thousand in 2024, up from RMB 795,425 thousand in 2023, indicating growth[16]. - Revenue from products sold through channel management services was RMB 301,258,000 in 2024, up from RMB 290,632,000 in 2023, reflecting a growth of approximately 3%[22]. - The revenue from comprehensive marketing, promotion, and channel management services was RMB 1,265,415,000 in 2024, compared to RMB 1,240,418,000 in 2023, marking an increase of about 2%[22]. Investment and Development - The company has made a prepayment of RMB 13,600 thousand for proprietary technology in 2024, indicating investment in new technology[5]. - The company acquired land use rights for a production base in Chongqing, covering an area of 38,972 square meters, for RMB 5.581 million[83]. - The Chongqing production base project aims to transform the company into a comprehensive pharmaceutical enterprise, enhancing product competitiveness and profitability[84]. - The company plans to strengthen product development and marketing capabilities to expand market coverage in response to industry trends[86]. Market Strategy and Future Plans - The company plans to focus on market expansion and new product development in the upcoming fiscal year[3]. - The group plans to enhance its sales network and supply chain management to improve market reach for high-quality products[56]. - The group aims to align with international standards in drug regulation, enhancing market transparency and reducing the time for new drug market entry[55]. - The company aims to pursue strategic acquisitions to enhance overall competitiveness and secure a favorable market position amid industry transformation[87]. Operational Efficiency - Operating cash flow improved significantly, with a net cash inflow of RMB 214.8 million in 2024 compared to a net outflow of RMB 118.7 million in 2023[102]. - Distribution and selling expenses decreased by 14.1% from RMB 422.6 million in 2023 to RMB 363.2 million in 2024, with the percentage of revenue dropping from 27.0% to 23.7%[93]. - Administrative expenses increased by 19.4% from RMB 112.1 million in 2023 to RMB 133.8 million in 2024, with the percentage of revenue rising from 7.2% to 8.7%[94]. Shareholder Information - The company declared a mid-year dividend of RMB 0.044 per share for 2024, compared to RMB 0.022 per share in 2023, marking a 100% increase[36]. - The company plans to distribute a final dividend of HKD 0.056 per share for the year ending December 31, 2024, totaling approximately RMB 65,387,000[36]. - A dividend policy has been approved, with dividends expected to be declared after the publication of interim and annual results announcements[122]. Regulatory and Compliance - The company confirmed that there were no significant impacts from the newly adopted or revised international financial reporting standards on its financial performance[14]. - The company has not applied any new or revised international financial reporting standards that have been issued but are not yet effective[15]. - The audit committee, consisting of two independent non-executive directors and one non-executive director, is responsible for reviewing the financial reporting system and internal controls[124].

Financial Performance - The group's revenue for the six months ended June 30, 2024, was RMB 818.0 million, an increase of 11% compared to RMB 736.9 million for the same period last year[15]. - The group's gross profit for the six months ended June 30, 2024, was RMB 350.5 million, up 10.8% from RMB 316.4 million in the previous year[15]. - The group's net profit for the six months ended June 30, 2024, was RMB 87.9 million, representing a 21.6% increase from RMB 72.3 million in the same period last year[15]. - Basic earnings per share for the six months ended June 30, 2024, were RMB 0.08, an increase of 14.3% from RMB 0.07 in the previous year[15]. - Revenue for the six months ended June 30, 2024, was RMB 817,973,000, representing a 10.99% increase from RMB 736,911,000 in the same period of 2023[72]. - Gross profit for the same period was RMB 350,493,000, up from RMB 316,427,000, indicating a growth of 10.73%[72]. - Net profit for the period was RMB 87,876,000, compared to RMB 72,260,000 in 2023, reflecting a 21.58% increase[72]. - Total comprehensive income for the period was RMB 146,638,000, significantly higher than RMB 38,416,000 in the same period last year[73]. Market Strategy and Expansion - The company has gradually initiated a globalization strategy, investing in overseas companies and innovative R&D firms, including stakes in NovaBay and Paragon Care Limited[17]. - The company is transforming from a sales-oriented enterprise to a comprehensive pharmaceutical company integrating research, development, production, and sales[17]. - The group aims to introduce advanced international pharmaceutical products and medical devices to the Chinese market[19]. - The group is focusing on expanding its sales network and enhancing brand building in the Chinese market[19]. - The company is actively pursuing potential products from overseas pharmaceutical and medical device companies to enhance its product portfolio[26]. - The company has built a sales network covering tens of thousands of medical institutions and pharmacies nationwide[17]. Research and Development - The company invested RMB 2,459,000 in research and development expenses during the period[72]. - The company aims to respond to structural adjustments in the pharmaceutical market by enhancing product development and exploring mergers and acquisitions[34]. Financial Position and Cash Flow - Cash and cash equivalents increased from RMB 114.4 million to RMB 145.1 million[44]. - Inventory decreased by 22.6% from RMB 417.9 million to RMB 323.4 million, reflecting improved inventory turnover efficiency[45]. - Trade and other payables decreased by 38.7% from RMB 338.2 million to RMB 207.5 million, with trade payables turnover days reduced from 123.6 days to 90.7 days[47]. - The net cash generated from operating activities for the six months ended June 30, 2024, was RMB 92,943 thousand, a significant improvement from a net cash outflow of RMB 149,379 thousand in the same period of 2023[81]. - The company reported a net cash outflow from investing activities of RMB 11,712 thousand for the first half of 2024, compared to a net cash inflow of RMB 33,554 thousand in the prior year[81]. - The total cash and cash equivalents at the end of June 30, 2024, amounted to RMB 145,116 thousand, an increase from RMB 90,831 thousand at the same time last year[81]. Corporate Governance - The company has adopted and complied with the corporate governance code as per the Stock Exchange Listing Rules, ensuring high standards of corporate governance[56]. - The audit committee, consisting of two independent non-executive directors and one non-executive director, oversees the financial reporting system and internal controls[58]. - The company will continue to review and improve its corporate governance practices to ensure compliance with the governance code[56]. Investments and Equity - The company invested $3 million in DMAX, acquiring 25% of its issued share capital and appointing one director to its board[30]. - As of June 30, 2024, the company's investment in Shanghai Yuhan was valued at RMB 33.73 million, with a 10% equity stake, and recorded an unrealized loss of RMB 0.63 million[31]. - The company holds a 6.62% equity stake in Jiaxing Yuhan, valued at RMB 7.91 million, with a long-term holding strategy[31]. - The fair value of listed investments in Australia increased to RMB 107,283,000 as of June 30, 2024, from RMB 67,307,000 as of December 31, 2023, representing a growth of 59.5%[97]. Regulatory and Economic Environment - In the first half of 2024, China's GDP reached RMB 61,683.6 billion, growing by 5.0% year-on-year[18]. - The average disposable income per capita in China was RMB 20,733, with a real growth rate of 5.3%[18]. - Per capita healthcare expenditure increased by 4.2% to RMB 1,271, accounting for 9.3% of total consumer spending[18]. - The Chinese government implemented zero-tariff policies on certain cancer and rare disease drugs in 2024 to reduce import costs[18]. Sales and Revenue Breakdown - Pharmaceutical revenue for the group was RMB 248.5 million, a 21.3% increase year-on-year, representing 30.4% of total revenue[22]. - The gross profit from pharmaceuticals was RMB 182.4 million, up 42.9% year-on-year, contributing 52.1% to total gross profit[22]. - Medical device revenue was RMB 427.7 million, accounting for 52.3% of total revenue, with a gross profit of RMB 159.2 million[21]. - The cardiovascular product, Reninping, achieved sales growth and expanded market share, contributing to a significant increase in sales revenue during the reporting period[23]. - The Alcon series ophthalmic products generated revenue of RMB 141.8 million, a 5.7% increase year-on-year, accounting for 17.3% of the group's total revenue[25]. - The gross profit from the Alcon series ophthalmic products was RMB 8.8 million, a 17.9% increase year-on-year, representing 2.5% of the group's total gross profit[25].

Financial Performance - The company's revenue for the six months ended June 30, 2024, was RMB 818.0 million, an increase of 11% compared to RMB 736.9 million for the same period last year[1]. - Gross profit for the same period was RMB 350.5 million, reflecting a 10.8% increase from RMB 316.4 million year-on-year[1]. - Net profit for the six months ended June 30, 2024, was RMB 87.9 million, representing a 21.6% increase from RMB 72.3 million in the previous year[1]. - Basic earnings per share for the period was RMB 0.08, up 14.3% from RMB 0.07 in the same period last year[1]. - Total comprehensive income for the period amounted to RMB 146.6 million, significantly higher than RMB 38.4 million in the previous year[2]. - The company reported a significant increase in other comprehensive income, totaling RMB 58.8 million compared to a loss of RMB 33.8 million in the previous year[2]. Cash and Assets - The company's cash and cash equivalents as of June 30, 2024, were RMB 145.1 million, compared to RMB 114.4 million at the end of 2023[3]. - Current assets decreased to RMB 1,040.7 million from RMB 1,106.9 million at the end of 2023, primarily due to a reduction in inventory[3]. - Current liabilities decreased to RMB 322.6 million from RMB 442.7 million at the end of 2023, indicating improved liquidity[3]. - The company's total assets less current liabilities stood at RMB 1,191.0 million, up from RMB 1,088.2 million at the end of 2023[3]. - As of June 30, 2024, the total trade and other receivables amounted to RMB 566,394,000, an increase from RMB 538,575,000 as of December 31, 2023[23]. - The trade receivables, net of credit loss provisions, were RMB 420,725,000 as of June 30, 2024, compared to RMB 450,702,000 as of December 31, 2023[23]. Revenue Breakdown - For the six months ended June 30, 2024, the total revenue from the sale of pharmaceutical products and medical supplies was RMB 817,973,000, an increase from RMB 736,911,000 for the same period in 2023, representing a growth of approximately 11%[10]. - The revenue from sales through comprehensive marketing and promotion services was RMB 676,145,000 for the six months ended June 30, 2024, up from RMB 602,671,000 in 2023, reflecting a growth of approximately 12%[11]. - The revenue from sales through channel management services was RMB 141,828,000 for the six months ended June 30, 2024, compared to RMB 134,240,000 in 2023, marking an increase of about 5%[12]. - The group reported pharmaceutical revenue of RMB 248.5 million, an increase of 21.3% year-on-year, representing 30.4% of total revenue[33]. - Medical device revenue was RMB 397.8 million, with a gross profit margin of 54.0%[33]. Expenses and Costs - Administrative expenses for the six months ended June 30, 2024, were RMB 183,330,000, an increase from RMB 53,959,000 in 2023, indicating a significant rise in operational costs[10]. - Research and development expenses amounted to RMB 70,312,000 for the six months ended June 30, 2024, compared to RMB 1,282,000 in 2023, reflecting a substantial increase in investment in R&D[10]. - Other income decreased by 26.5% from RMB 48.5 million to RMB 35.7 million, primarily due to reduced government subsidies[53]. - Distribution and selling expenses decreased by 15.6% from RMB 217.1 million to RMB 183.3 million, with expenses as a percentage of revenue dropping from 29.5% to 22.4%[54]. Investments and Financing - The company has invested RMB 14.9 million in the Shanghai Fund, representing 10% of the fund's equity as of June 30, 2024[22]. - The company has also invested RMB 10 million in the Jiaxing Fund, which accounts for 6.62% of the fund's equity as of June 30, 2024[22]. - The company repaid bank loans totaling RMB 53,971,000 during the reporting period, with outstanding loans of RMB 63,140,000 as of June 30, 2024[29]. - The fixed interest rate on bank loans ranges from 3.00% to 5.00% as of December 31, 2023[29]. - The group invested $3 million in DMAX Co., Ltd., acquiring a 25% stake, which strengthens the partnership and market share of DMAX's zirconia products in China[44]. Market and Strategic Initiatives - The group aims to enhance product accessibility and quality through new policies in the pharmaceutical distribution sector[31]. - The introduction of zero tariff policies on certain cancer and rare disease drugs aims to reduce import costs and improve market accessibility[32]. - The group is focused on establishing long-term partnerships with global pharmaceutical and medical device manufacturers to enhance its market presence[32]. - The company is actively pursuing the acquisition of intellectual property from Q3 Medical Devices Limited, indicating a focus on innovation and market expansion[36]. - The group aims to enhance its product portfolio by seeking potential products from overseas pharmaceutical and medical device companies[38]. Corporate Governance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange rules, ensuring high standards of governance to protect shareholder interests and enhance corporate value[69]. - The audit committee, consisting of independent non-executive directors, has reviewed the financial reporting system and internal controls, confirming no disagreements with the accounting practices adopted by the company[71].

Financial Performance - For the year ending December 31, 2023, the group declared a final dividend of HKD 0.024 per share, totaling HKD 30,179,000[3]. - The company reported a significant decrease in distributable reserves, amounting to approximately RMB 464.4 million as of December 31, 2023, down from RMB 487.7 million in 2022[48]. - The financial summary for the past five fiscal years is detailed in the annual report, providing insights into the company's performance, assets, and liabilities[41]. - The financial statements for the year ending December 31, 2023, were audited by Deloitte[131]. - The board has adopted a dividend policy, expecting to declare dividends after the publication of interim and annual results announcements[190]. - Factors considered before declaring dividends include actual and expected financial performance, retained earnings, and future capital expenditure requirements[191]. Employee and Management - The employee cost for the year ending December 31, 2023, was RMB 76.6 million, an increase from RMB 75.5 million for the previous year[5]. - The company has a total of 345 full-time employees as of December 31, 2023[77]. - There were no significant difficulties in recruitment or major employee turnover during the year ending December 31, 2023[57]. - The company has adopted a share incentive plan to reward certain employees, including directors and senior management, to retain talent and support ongoing development[5]. - The remuneration committee, consisting of three members, is responsible for advising on the compensation policies for all directors and senior management[172]. - The remuneration committee held two meetings during the year to review and recommend compensation packages for individual executive directors and senior management[178]. Governance and Compliance - The company has complied with the corporate governance code throughout the reporting period[126]. - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, complying with listing rules regarding independent director appointments[137]. - The company has received annual independence confirmation from all independent non-executive directors, ensuring compliance with listing rules[141]. - The board has established a governance framework to review and monitor compliance with legal and regulatory requirements[158]. - The company has implemented a compliance manual for reporting undisclosed inside information to ensure timely disclosures[159]. - The board will select a suitable candidate for the CEO position as it is currently vacant[145]. Market and Strategic Outlook - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[22]. - The company is investing in R&D for new technologies, with a budget allocation of $10 million for the upcoming year[22]. - Market expansion efforts include entering three new international markets by the end of 2024, aiming for a 20% increase in market share[22]. - The company is considering strategic acquisitions to enhance its product portfolio, with potential targets identified in the biotech sector[22]. Risk Management - The group faced various market risks, including interest rate fluctuations, foreign exchange risks, and credit risks, with sales denominated in RMB and procurement in multiple currencies[2]. - The company faces various risks, including economic slowdown in China, changes in medical product policies, and operational risks related to product liability claims[51]. - The board is responsible for identifying and assessing ESG-related risks and opportunities, and regularly reports to the board on ESG matters[99]. ESG and Sustainability - The company is actively enhancing its ESG governance framework, integrating ESG factors into its operational strategy to improve sustainability performance[34]. - The ESG report for 2023 covers the period from January 1 to December 31, 2023, focusing on the company's pharmaceutical and medical device sales in China[198]. - The ESG report aims to present the company's sustainable development practices and key performance indicators[197]. - The report adheres to the guidelines set by the Hong Kong Stock Exchange for environmental, social, and governance reporting[199]. - The company emphasizes the importance of quantitative data in the ESG report to enhance comparability of key performance indicators[200]. Shareholder Relations - The company will suspend share transfer registration from May 30, 2024, to June 3, 2024, to determine eligible shareholders for the final dividend distribution[32]. - Shareholders can propose resolutions at the general meeting, requiring a written request from at least two shareholders[192]. - The company will publish voting results of resolutions presented at the shareholder meetings on its website and the stock exchange[188]. Board Composition and Diversity - The board of directors includes experienced professionals with diverse backgrounds in finance, management, and pharmaceuticals, ensuring robust governance[22]. - The board has achieved gender diversity, with female directors now accounting for 14% of the board[166]. - Approximately 49% of the company's total workforce consists of female employees, indicating a commitment to gender diversity[166]. - The company aims to maintain the current level of female representation on the board and will seek independent professional recruitment agencies to identify potential female candidates when necessary[166]. - The company adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience to enhance board performance[165].

Financial Performance - The group's revenue increased by 0.7% from RMB 1,556.0 million in 2022 to RMB 1,566.7 million in 2023[14]. - The group's gross profit decreased by 14.4% from RMB 780.5 million in 2022 to RMB 668.2 million in 2023[14]. - The group's net profit fell by 43.9% from RMB 230.0 million in 2022 to RMB 129.0 million in 2023[14]. - Basic earnings per share decreased by 40.0% from RMB 0.20 in 2022 to RMB 0.12 in 2023[14]. - The company reported a total comprehensive income of RMB 95.4 million for the year, down from RMB 204.9 million in the previous year[15]. - The company’s non-controlling interests reported a loss of RMB 16.7 million in 2023 compared to a loss of RMB 5.3 million in 2022[15]. - The group reported a net cash flow from operating activities of RMB (118.686) million for the year ended December 31, 2023, compared to RMB 93.295 million in 2022[183]. - The net profit for the year was RMB 128.997 million, a decrease from RMB 229.950 million in 2022[199]. - The company experienced a decrease in pre-tax profit from RMB 294.497 million in 2022 to RMB 180.448 million in 2023[199]. Revenue Breakdown - Total revenue for the year reached RMB 1,566,673,000, with a breakdown of RMB 1,265,415,000 from pharmaceutical products and RMB 301,258,000 from medical devices and supplies[29]. - Revenue from pharmaceutical sales decreased by 57.7% from RMB 1,030.2 million in 2022 to RMB 436.3 million in 2023, primarily due to a decline in sales prices and slow recovery in the post-COVID market[118]. - Revenue from medical device sales increased by 230.3% from RMB 251.0 million in 2022 to RMB 829.1 million in 2023, attributed to new agency rights obtained in Shanghai and Zhejiang[118]. - Revenue from Alcon products was RMB 301.3 million, a 9.6% increase year-over-year, accounting for 19.2% of total revenue during the reporting period[59]. - The medical products segment generated revenue of RMB 1,030,198,000, representing 66.2% of total revenue in 2022, while the medical device segment contributed RMB 436,268,000, or 27.8%[62]. Expenses and Costs - The group's annual profit decreased by 43.9% to RMB 129.0 million in 2023, with a net profit margin dropping from 14.8% in 2022 to 8.2% in 2023[105]. - In 2023, the group's sales cost increased by 15.8% to RMB 898.4 million, primarily due to the rise in sales costs of medical device products[100]. - Distribution and selling expenses decreased by 9.7% to RMB 422.6 million in 2023, with the percentage of these expenses to revenue dropping from 30.1% in 2022 to 27.0% in 2023[102]. - Administrative expenses increased by 36.6% from RMB 82.1 million in 2022 to RMB 112.1 million in 2023, representing 7.2% of revenue compared to 5.3% in 2022[187]. Investments and Assets - The company invested RMB 27.5 million in Hunan Tiantong Environmental Protection Co., holding a 75% stake after additional investment[115]. - The company has not made any investments exceeding 5% of its total asset value in any invested company as of December 31, 2023[93]. - The company's investment in structured bank deposits decreased from RMB 105 million in 2022 to RMB 10 million in 2023[78]. - The group’s total liabilities include trade payables of RMB 284.9 million and bank borrowings of RMB 28.9 million as of December 31, 2022[147]. Market Strategy and Development - The company is focused on expanding its market presence and enhancing its product offerings in the medical sector[5]. - The company plans to enhance its market presence in the medical device sector, focusing on high-potential areas such as ophthalmology and dentistry[58]. - The company plans to continue improving its medical device product market layout and enhance promotional efforts to increase revenue contributions from this segment[87]. - The group is actively maintaining close ties with multiple overseas pharmaceutical and medical device companies to introduce potential products for marketing and sales[67]. - The group is transforming from a sales-oriented company to a comprehensive pharmaceutical enterprise integrating research, development, production, and sales[169]. Corporate Governance and Policies - The group is committed to maintaining high standards of corporate governance to safeguard shareholder interests and enhance corporate value[138]. - The group has established a dividend policy, expecting to announce dividends after the publication of interim and annual performance announcements, with dividends to be declared and paid in Hong Kong dollars[139]. - The company has adopted a share incentive plan to retain and attract talent for ongoing development[192]. - The company has appointed Deloitte as its auditor for the year ended December 31, 2023[176]. Miscellaneous - The annual general meeting of shareholders is scheduled for May 24, 2024[134]. - The group will suspend the transfer of shares from May 30, 2024, to June 3, 2024, to determine eligibility for the final dividend[137]. - The group currently has no foreign exchange hedging policy, but management continues to monitor foreign exchange risks and will consider hedging significant foreign exchange risks as necessary[131]. - The group has not encountered any significant difficulties in recruitment during the reporting period and has not experienced severe employee turnover or major labor disputes[156].

Financial Performance - Total revenue for the six months ended June 30, 2023, was RMB 736.9 million, compared to RMB 659.4 million for the same period in 2022, representing an increase of approximately 11.7%[25] - The company reported a pre-tax profit of RMB 90.4 million for the first half of 2023[19] - As of June 30, 2023, the group reported a profit of RMB 77,001,000, a decrease of 36.9% compared to RMB 122,218,000 for the same period in 2022[59] - The group's net profit for the six months ended June 30, 2023, was RMB 72.3 million, a decrease of 40.6% compared to RMB 121.6 million in the same period last year[175] - The group's gross profit for the six months ended June 30, 2023, was RMB 316.4 million, a decrease of 11.2% compared to RMB 356.4 million in the same period last year[199] - The profit before tax for the six months ended June 30, 2023, was RMB 90.4 million, down from RMB 149.7 million in the same period last year[176] - The basic earnings per share for the six months ended June 30, 2023, was RMB 0.07, a decrease of 30% compared to RMB 0.1 in the same period last year[200] Revenue Breakdown - Revenue from pharmaceutical products was RMB 339.1 million for the first half of 2023, down from RMB 562.8 million in the same period of 2022, a decrease of approximately 39.7%[25] - Revenue from medical equipment and supplies increased significantly to RMB 397.8 million in the first half of 2023, compared to RMB 96.6 million in the same period of 2022, marking a growth of approximately 311.5%[25] - The group recognized government grants of RMB 41,166,000, significantly up from RMB 8,671,000 in the previous year, marking an increase of 373.5%[52] - The group reported a total of RMB 48,528,000 in other income, up from RMB 18,711,000 in the previous year, reflecting a growth of 159.5%[52] Cash and Investments - Cash and cash equivalents decreased from RMB 214.0 million as of December 31, 2022, to RMB 90.8 million as of June 30, 2023[1] - The equity investment in listed securities in Australia was valued at RMB 70.6 million as of June 30, 2023, down from RMB 93.0 million as of December 31, 2022[40] - The company invested approximately RMB 24.9 million in the acquisition of furniture and equipment and the construction of factory buildings during the first half of 2023[35] - The company secured new bank loans of approximately RMB 90,023,000 during the reporting period, compared to RMB 56,971,000 as of June 30, 2022[83] Liabilities and Receivables - The total trade receivables amounted to RMB 472,648,000, an increase of 13.7% from RMB 415,739,000 as of December 31, 2022[71] - The company reported trade payables of RMB 237,250,000 as of June 30, 2023, down 26.7% from RMB 323,522,000 as of December 31, 2022[81] - Trade and other payables decreased by 33.4% to RMB 256.6 million as of June 30, 2023, from RMB 385.2 million as of December 31, 2022[150] - The company's total liabilities decreased from RMB 385,247,000 as of December 31, 2022, to RMB 256,618,000 as of June 30, 2023[81] Employee and Operational Costs - The total employee costs for the period were RMB 40,607,000, up 11.6% from RMB 36,485,000 in the prior period[57] - As of June 30, 2023, the company's short-term employee benefits amounted to RMB 4,399,000, an increase of 19.1% compared to RMB 3,691,000 for the same period in 2022[77] - The company's retirement benefits for the first half of 2023 were RMB 364,000, slightly down from RMB 369,000 in the same period of 2022[77] Acquisitions and Goodwill - The company recognized a goodwill of RMB 6,213,000 from the acquisition of Hunan Tiantong, with a total consideration of RMB 27,500,000[115] - The non-controlling interest in Hunan Tiantong was valued at RMB 17,417,000, based on the proportionate share of the net assets acquired[128] - The total assets and liabilities recognized at the acquisition date amounted to RMB 38,704,000[115] - The company completed an investment of RMB 27.5 million to increase its stake in Hunan Tiantong to 55% and later increased it to 75% with an additional investment of RMB 49.75 million[136] Market Strategy and Operations - The company has established stable and friendly partnerships with over 500 mainstream pharmaceutical companies across China, achieving effective coverage in tens of thousands of medical institutions and pharmacies[178] - The company has implemented a diversification strategy and expanded its production base in Chongqing, which commenced operations in 2022, and has acquired Hunan Tiantong Environmental Protection Co., Ltd. to expand into the environmental sector[179] - The company aims to enhance its market presence and product sales through increased marketing efforts and academic promotion activities following the adjustment of COVID-19 measures in December 2022[182] - The company is focusing on high-growth potential products in the gynecology and cardiovascular fields, aiming to increase market share through deeper marketing network activities[187] - The company is committed to seeking potential products from overseas pharmaceutical and medical device companies to optimize its product portfolio and ensure long-term development[190]

Financial Performance - The group's revenue for the six months ended June 30, 2023, was RMB 736.9 million, an increase of 11.8% compared to RMB 659.4 million in the same period last year[1]. - The net profit for the same period was RMB 72.3 million, a decrease of 40.6% from RMB 121.6 million year-on-year[10]. - Basic earnings per share for the six months ended June 30, 2023, were RMB 0.07, down 30% from RMB 0.10 in the previous year[10]. - Gross profit for the six months was RMB 316.4 million, compared to RMB 356.4 million in the same period last year, reflecting a decline in gross margin[11]. - The group's pre-tax profit for the six months ended June 30, 2023, was RMB 90,412,000, a decrease from RMB 149,687,000 in the same period of 2022, indicating a decline of about 39.5%[21][24]. - The total other income for the six months ended June 30, 2023, was RMB 48,528,000, compared to RMB 18,711,000 for the same period in 2022, reflecting a significant increase of approximately 159.5%[21][28]. - The group reported segment revenue of RMB 736,911,000 for the six months ended June 30, 2023, compared to RMB 659,410,000 for the same period in 2022, representing an increase of approximately 11.8%[21][30]. - The group's net profit decreased by 40.6% from RMB 121.6 million to RMB 72.3 million, with the net profit margin dropping from 18.4% to 9.8%[100]. Assets and Liabilities - Total assets as of June 30, 2023, were RMB 1,025.1 million, down from RMB 1,134.9 million at the end of the previous year[3]. - The total equity attributable to the owners of the company was RMB 982.1 million, a decrease from RMB 1,007.8 million at the end of the previous year[4]. - The group’s cash and cash equivalents amounted to RMB 90.8 million, compared to RMB 214.0 million at the end of the previous year, indicating a decrease in liquidity[3]. - The group reported financing costs of RMB 53,959,000 for the six months ended June 30, 2023, which is an increase from RMB 1,035,000 in the same period of 2022[21][23]. - As of June 30, 2023, the total bank borrowings of the group amounted to RMB 90.0 million, compared to RMB 28.9 million as of December 31, 2022[106]. - The asset-liability ratio (calculated as bank borrowings divided by total assets) was 6.3% as of June 30, 2023, up from 1.8% as of December 31, 2022[106]. Expenses - The group’s administrative expenses increased significantly to RMB 217.1 million from RMB 39.6 million year-on-year, indicating higher operational costs[11]. - The group incurred administrative expenses of RMB 217,147,000 for the six months ended June 30, 2023, which is a rise from RMB 39,605,000 in the same period of 2022[21][23]. - Distribution and selling expenses decreased by 0.3% from RMB 217.7 million to RMB 217.1 million, with the percentage of revenue dropping from 33.0% to 29.5%[92]. - Administrative expenses rose by 36.2% from RMB 39.6 million to RMB 54.0 million, with the percentage of revenue increasing from 6.0% to 7.3%[93]. Sales and Revenue Breakdown - Sales of pharmaceutical products amounted to RMB 339.1 million, while sales of medical equipment and supplies reached RMB 397.8 million[60]. - Pharmaceutical sales revenue decreased by 52.3% from RMB 429.1 million to RMB 204.9 million due to price declines and slow market recovery post-COVID[82]. - Medical device sales revenue surged by 311.7% from RMB 96.6 million to RMB 397.8 million, attributed to acquiring agency rights for several products in Shanghai and Zhejiang[82]. - The revenue from products sold through channel management services amounted to RMB 134,240,000 for the six months ended June 30, 2023, slightly up from RMB 133,697,000 in the same period of 2022[33]. - The revenue from the Aierkang series of ophthalmic drugs was RMB 134.2 million, with a gross profit margin of 18.2%[169]. Investments and Strategic Initiatives - The group invested RMB 27.5 million in Hunan Tiantong, acquiring a 55% stake, and later increased its investment to RMB 49.75 million for a 75% stake[78]. - The group plans to transform its Rongchang production base into a comprehensive pharmaceutical enterprise integrating research, development, production, and sales[76]. - The group aims to enhance its product competitiveness and profitability through the introduction of new technologies and products at the Rongchang production base[76]. - The company invested $3 million in DMAX Co., Ltd., a company based in South Korea, during the reporting period[128]. - The group has invested RMB 20 million in the Shanghai Fund, which focuses on equity investments in multiple target companies in the pharmaceutical industry, maintaining a 10% equity interest[146]. Market and Operational Strategies - The group plans to enhance product development, marketing capabilities, and market coverage through strategic acquisitions in response to changes in the Chinese pharmaceutical industry[80]. - The company aims to leverage its unique product advantages to regain sales growth and expand market share[165]. - The company will continue to improve its marketing strategies and strengthen promotional efforts for its medical device products[167]. - The group is actively maintaining close connections with multiple overseas pharmaceutical and medical device companies to introduce potential products for marketing and sales in China[139]. - The group is focusing on optimizing approval processes and recognizing international clinical trial data to expand its product selection scope[157]. Employee and Shareholder Information - The group employed a total of 361 employees as of June 30, 2023[111]. - The board proposed an interim dividend of HKD 0.024 per share, totaling HKD 30,179,000 for the six months ended June 30, 2023[113]. - The group has 80,276,000 shares available for issuance as reward shares under the share incentive plan, representing approximately 6.38% of the issued share capital[120]. - The share incentive plan was adopted to retain and attract talent for the company's ongoing development[122]. Risk Management - The group faced various market risks, including interest rate risk, foreign exchange risk, and credit risk[108]. - The group has no current foreign exchange hedging policy but continues to monitor foreign exchange risks[108].

Shanghai Pioneer Holding Ltd 上海先鋒控股有限公司 (於開曼群島註冊成立的有限公司) 股份代號 : 01345 2022 年 報 W 財務摘要3 董事會報告 29 綜合損益及其他全面收益表 78 綜合財務報表附註 84 時代廣場二座31樓 授權代表 李新洲先生 吳嘉雯女士 張虹先生 賴展樞先生 黃志雄先生 法律顧問 中倫律師事務所 財務摘要 • 本公司的每股基本盈利由二零二一年的人民幣0.12元增加66.7%至二零二二年的人民幣0.20元。 尊敬的各位股東： 當前醫藥行業依然面臨醫保控費、藥品招標降價等壓力，但隨著政策導向愈趨明確，行業合規監管的規範標準不斷提 高，順應醫保價值導向及能夠提升醫保資金利用效率的藥品更具備市場競爭優勢，本集團也受惠於此。報告期內，本 集團充分利用其產品的高質量、療效確切等優勢，結合精細化與差異化的學術推廣活動，擴大產品市場覆蓋範圍，深 度挖掘產品市場潛力，不斷提升產品的市場佔有率。本集團通過提供綜合性營銷、推廣及管道管理服務，同時亦被稱 為自主推廣的產品，例如戴芬、希弗全、眼科、齒科器械及耗材等均取得了較快的發展。本集團將持續優化產品市場 佈局和強化其 ...

Revenue and Growth - The total revenue for the year ended December 31, 2022, was RMB 1,556,040 thousand, an increase from RMB 1,434,820 thousand in 2021, representing a growth of approximately 8.5%[10] - Revenue from pharmaceutical products reached RMB 1,030,198 thousand, up from RMB 991,080 thousand in the previous year, indicating a growth of about 4.0%[10] - Revenue from medical devices and supplies increased to RMB 250,951 thousand, compared to RMB 187,182 thousand in 2021, reflecting a significant growth of approximately 34.0%[10] - The group's revenue increased by 8.4% to RMB 1,556.0 million, compared to RMB 1,434.8 million in the previous year[26] - Revenue for the year 2022 was RMB 1,556,040 thousand, an increase from RMB 1,434,820 thousand in 2021, representing a growth of approximately 8.5%[104] - Revenue from pharmaceutical sales reached RMB 1,305,089 thousand, up from RMB 1,247,638 thousand in the previous year, reflecting a growth of 4.6%[134] - Revenue from integrated marketing and channel management services was RMB 1,281,149,000, contributing significantly to the overall performance[160] Profitability - Annual net profit surged by 63.3% to RMB 230.0 million, compared to RMB 140.8 million in the previous year[26] - The group's annual profit increased by 63.3% from RMB 140.8 million in 2021 to RMB 230.0 million in 2022, with a net profit margin rising from 9.8% to 14.8%[49] - The company reported a net interest income from bank deposits of RMB 2,913 thousand in 2022, up from RMB 1,140 thousand in 2021, indicating a growth of approximately 155.5%[12] - The group reported a pre-tax profit of RMB 294,497,000 for 2022, compared to RMB 201,447,000 in 2021, representing an increase of approximately 46%[145] - The company reported a total comprehensive income of RMB 204,922 thousand for 2022, compared to RMB 136,959 thousand in 2021, indicating an increase of about 49.5%[104] Shareholder Returns and Dividends - The company has adopted a dividend policy, expecting to declare dividends following the publication of interim and annual results, subject to applicable laws and regulations[15] - The company plans to distribute a final dividend of HKD 0.048 per share (approximately RMB 0.041), totaling about HKD 60,357,000 (approximately RMB 51,841,000) for the year ended December 31, 2022[172] - The company repurchased a total of 2,720,000 shares in January and April 2022, with a total payment of HKD 5,444,000[99] Assets and Liabilities - The group's current assets totaled RMB 1,134.9 million as of December 31, 2022, compared to RMB 1,013.1 million in the previous year[79] - The group's current liabilities amounted to RMB 472.8 million as of December 31, 2022, reflecting an increase from RMB 348.2 million in 2021[79] - Total assets as of December 31, 2022, amounted to RMB 1,134,929 thousand, an increase from RMB 1,013,142 thousand in 2021, representing a growth of about 12%[105] - The group's total equity amounted to RMB 1,022,489 thousand as of December 31, 2022, compared to RMB 910,986 thousand in the previous year, representing an increase of 12.2%[125] Investments and Acquisitions - The group has made investments through the Shanghai Fund, with a total investment of approximately RMB 170 million as of December 31, 2022, down from RMB 204 million in 2021[17] - The group acquired a stake in Hunan Tiantong Environmental Protection Co., Ltd., which primarily provides metal surface treatment services, during the year[127] - The group invested USD 3 million in DMAX Co., Ltd. in South Korea through its subsidiary in January 2020[40] Market and Product Development - The group established a new broad market division to significantly increase coverage of grassroots medical institutions[30] - The group aims to optimize its product portfolio by seeking potential products from overseas pharmaceutical and medical device companies[34] - The group is transforming into a comprehensive pharmaceutical enterprise by integrating research and development, production, and sales, aiming to enhance product competitiveness and profitability[42] - The company plans to expand its product offerings in the medical device sector, leveraging government support for innovative drugs and medical devices[184] Corporate Governance and Compliance - The group is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[62] - The company has appointed Deloitte as the auditor for the year ended December 31, 2022, and will propose their reappointment at the upcoming annual general meeting[94] - The company believes its shares are undervalued in the capital market, and the board is committed to maintaining sufficient financial resources for continued business growth[99] Taxation - The group's actual income tax expense increased by 6.5% from RMB 60.6 million in 2021 to RMB 64.5 million in 2022, with effective tax rates of 21.9% and 30.1% respectively[74] - The effective tax rate for the group was approximately 25%, with total tax expenses amounting to RMB 73,624,000 for 2022, compared to RMB 50,362,000 in 2021[145] Trade and Receivables - Trade receivables, net of credit loss provisions, amounted to RMB 415,739 thousand in 2022, compared to RMB 272,084 thousand in 2021, representing a growth of approximately 53.0%[19] - As of December 31, 2022, the company's trade receivables balance included overdue amounts totaling RMB 36,091,000, an increase from RMB 31,822,000 in 2021[178] - The company's overdue trade receivables included RMB 2,682,000 that had been overdue for more than 90 days, which are still considered recoverable due to stable credit quality[178] Employee Costs - The group’s total employee costs increased to RMB 75,490,000 in 2022 from RMB 66,479,000 in 2021, reflecting a rise of about 14%[145]

Financial Performance - The group's revenue for the six months ended June 30, 2022, was RMB 659.4 million, a decrease of 3.9% compared to RMB 685.8 million in the same period last year[14]. - The group's gross profit for the same period was RMB 356.4 million, down 5.8% from RMB 378.4 million year-on-year[14]. - The net profit for the six months ended June 30, 2022, was RMB 121.6 million, an increase of 78.4% compared to RMB 68.1 million in the previous year[14]. - Basic earnings per share for the period were RMB 0.1, up 66.7% from RMB 0.06 in the same period last year[14]. - The group's revenue for the reporting period was RMB 659.4 million, a decrease of 3.9% compared to the same period last year[20]. - Net profit for the period was RMB 121.6 million, an increase of 78.4% year-on-year[20]. - Revenue from eye care pharmaceuticals through channel management services was RMB 133.7 million, an increase of 18.0%, accounting for 20.3% of total revenue[20]. - Revenue from comprehensive marketing, promotion, and channel management services for pharmaceuticals was RMB 429.1 million, a decrease of 11.5%, accounting for 65.1% of total revenue[23]. - Revenue from medical devices was RMB 96.6 million, an increase of 9.9%, accounting for 14.7% of total revenue[21]. - The gross profit from pharmaceuticals was RMB 292.4 million, a decrease of 11.2%, accounting for 82.1% of total gross profit[23]. - The gross profit from medical devices was RMB 54.8 million, an increase of 19.7%, accounting for 15.4% of total gross profit[21]. - The company achieved a profit before tax of RMB 149,687,000, an increase of 52.5% from RMB 98,013,000 in the previous year[91]. - The net profit attributable to the owners of the company was RMB 122,218,000, compared to RMB 68,888,000 in 2021, representing an increase of 77.3%[91]. - Total comprehensive income for the period was RMB 102,820,000, compared to RMB 82,388,000 in 2021, reflecting a growth of 24.8%[91]. Market and Business Strategy - The group serves approximately 30,000 hospitals and over 150,000 pharmacies across all provinces, municipalities, and autonomous regions in China[17]. - The company is expanding its business and channels to mitigate the negative impacts of COVID-19 outbreaks in certain cities[19]. - The group aims to benefit from optimized approval processes and recognition of international clinical trial data to expand its product selection[19]. - The company emphasizes the quality and brand advantages of its products to enhance the efficiency of medical insurance fund utilization[19]. - The pharmaceutical and medical device sectors are expected to maintain a stable growth trend despite price pressures from healthcare cost control policies[19]. - The group is focusing on strengthening academic promotion of its products in a challenging market environment[19]. - The company plans to expand its market presence and enhance brand recognition through increased coverage of healthcare institutions and academic promotion strategies[25]. - The group is actively expanding its marketing network and enhancing hospital coverage to increase market share in the gynecology treatment field[28]. - The group is focusing on introducing potential products from overseas pharmaceutical and medical device companies to ensure long-term growth[33]. Investments and Acquisitions - The group holds 5,188,421 shares of NovaBay, representing approximately 9.70% of its equity as of June 30, 2022[36]. - The investment in Paragon has been diluted from 10.86% to 9.72%, resulting in a gain of RMB 37,825,000 from the sale of the associate company during the reporting period[38]. - The group invested RMB 13.5 million in Sichuan Pioneer Huimei Biotechnology Co., Ltd., holding a 75% stake, focusing on biotechnology products and services[40]. - The investment in DMAX Co., Ltd. amounted to USD 3 million, with the group holding 25% of the issued share capital[42]. - The investment in Shanghai Yuhan Equity Investment Fund has been recognized at RMB 596 million, with an unrealized gain of RMB 11.3 million during the reporting period[43]. - The company invested RMB 27.5 million in Hunan Tiantong Environmental Protection Co., holding a 55% stake after the completion of the transaction on June 17, 2022[44]. - The company has signed cooperation agreements with multiple companies in the environmental protection industry, which is expected to become a new growth point for performance[33]. Financial Position and Cash Flow - Cash and cash equivalents decreased from RMB 224.9 million to RMB 193.1 million, primarily due to the acquisition of a subsidiary and increased bank structured deposits[59]. - Inventory decreased by 23.5% from RMB 294.9 million to RMB 225.6 million, attributed to improved inventory management and reduced reserves due to supplier capacity issues[60]. - Trade and other receivables decreased by 13.1% from RMB 306.3 million to RMB 266.3 million, with trade receivables turnover days improving from 74.6 days to 71.6 days[61]. - Trade and other payables decreased by 39.7% from RMB 297.1 million to RMB 179.1 million, with trade payables turnover days improving from 170.9 days to 109.3 days[62]. - Total bank borrowings increased significantly from RMB 13.9 million to RMB 70.8 million, with a debt-to-asset ratio rising from 1.0% to 5.4%[63]. - The company reported a net cash generated from operating activities for the six months ended June 30, 2022, was RMB 81,074,000, a significant increase from RMB 27,437,000 in the same period of 2021, representing a growth of 195%[100]. - The net cash used in investing activities was RMB (90,065,000), compared to a net cash inflow of RMB 25,260,000 in the prior year, indicating a shift in investment strategy[100]. - The company’s cash flow from financing activities showed a net outflow of RMB (23,258,000), compared to RMB (5,048,000) in the previous year, indicating increased financial pressure[100]. Shareholder Information and Corporate Governance - The company has adopted a share incentive plan effective for 10 years starting from April 10, 2015, to reward and retain employees, including directors and senior management[72]. - As of June 30, 2022, there were 68,035,000 shares available for grant under the share incentive plan, representing approximately 5.41% of the issued share capital[73]. - During the six months ended June 30, 2022, the company repurchased a total of 2,720,000 shares at a total cost of HKD 5,444,200, with the highest price per share being HKD 2.42[75]. - The board believes that the company's shares are undervalued in the capital market, with market value significantly below intrinsic value, and intends to improve shareholder returns through share repurchases[75]. - As of June 30, 2022, major shareholder Wu Qian holds 858,392,000 shares, representing approximately 68.26% of the company's equity[82]. - The company has not granted any shares under the share incentive plan during the reporting period, nor have any shares been vested[74]. - The company maintains robust financial resources to support ongoing business growth while executing share repurchases[75]. - The group remains committed to high standards of corporate governance, adhering to the corporate governance code as per the Hong Kong Stock Exchange[69]. Taxation and Deferred Tax - The group's income tax expense decreased by 5.9% from RMB 29.9 million to RMB 28.1 million during the reporting period, with effective tax rates of 30.5% and 18.8% respectively[57]. - The company reported a deferred tax expense of RMB 5,898,000 for the six months ended June 30, 2022, compared to RMB 6,781,000 in the previous year, a decrease of 13.0%[115]. - The total deferred tax position showed a net liability of RMB 22,390,000 as of June 30, 2022, compared to RMB 13,667,000 as of December 31, 2021[132]. Employee and Management Costs - Employee costs decreased from RMB 38.3 million to RMB 36.5 million, with a total workforce of 292 employees as of June 30, 2022[67]. - The group incurred management compensation of RMB 4,060,000 during the period, an increase from RMB 3,281,000 in the same period last year, reflecting a rise of approximately 23.7%[141]. - Total employee costs for the six months ended June 30, 2022, were RMB 36,485,000, down from RMB 38,254,000 in 2021, a decrease of 4.6%[116].