京同仁登 Tong Ren Tang Technologies Co. Ltd. 北京同仁堂科技發展股份有限公司 《射中華人民共和國駐田成立始設份有限公司] (股份代值:1666) NICE NO DO DES DESIDENT FOR DENNE 中期業績 9 45 1230 ▲ 0000 WHEN MAN NEW YORK BOOK BOOK analana and C C 4 bell 25 100 e | --- | --- | |-------|--------------------------------------------------------------------------------| | | | | 摘要 | | | · | 截至二零二四年六月三十日止六個月,本集團銷售收入較二零二三年同期上漲 約 2.63% • | | . | 截至二零二四年六月三十日止六個月,歸屬於本公司所有者之利潤較二零二三 | | | 年同期上漲約16.46%。 | | . | 截至二零二四年六月三十日止六個月,歸屬於本公司所有者之每股收益為人民 | | | 幣 0.33 元 · | | . | 董事會 ...

Financial Performance - For the six months ended June 30, 2024, the group's sales revenue increased by approximately 2.63% compared to the same period in 2023, reaching RMB 4,050,094,000[4] - The profit attributable to the owners of the company for the same period rose by approximately 16.46% year-on-year, amounting to RMB 428,752,000[4] - The earnings per share attributable to the owners of the company for the six months ended June 30, 2024, was RMB 0.33, compared to RMB 0.29 for the same period in 2023[4] - The total comprehensive income for the period was RMB 604,055,000, a decrease from RMB 664,847,000 in the previous year[7] - The company reported a net operating profit of RMB 632,045,000 for the period, a slight decrease from RMB 640,630,000 in the previous year[4] - The total revenue for the six months ended June 30, 2024, was RMB 4,050,094,000, compared to RMB 3,946,415,000 in the same period last year, reflecting a growth of 2.6%[22] - The company reported a profit of RMB 582,784,000 for the period, with the company's segment contributing RMB 302,703,000[39] Assets and Liabilities - The total assets as of June 30, 2024, amounted to RMB 14,288,922,000, an increase from RMB 13,507,742,000 as of December 31, 2023[10] - The company's non-current assets were valued at RMB 3,476,625,000, slightly up from RMB 3,448,844,000 at the end of 2023[9] - The total liabilities as of June 30, 2024, were RMB 4,442,717,000, compared to RMB 3,855,857,000 at the end of 2023[10] - The company's cash and cash equivalents increased to RMB 3,942,070,000 from RMB 2,746,458,000 at the end of 2023[9] - Accounts receivable and notes receivable totaled RMB 1,295,880,000 as of June 30, 2024, up from RMB 952,456,000 as of December 31, 2023, representing a growth of approximately 36%[32] - The total accounts payable decreased to RMB 973,406,000 as of June 30, 2024, from RMB 1,376,743,000 as of December 31, 2023, reflecting a reduction of approximately 29%[36] Cash Flow - For the six months ended June 30, 2024, the net cash flow from operating activities was RMB (452,882) thousand, a decrease from RMB 848,473 thousand in the same period of 2023[11] - The net cash flow from investing activities showed a significant increase to RMB 1,055,672 thousand in 2024, compared to a net outflow of RMB (376,022) thousand in 2023[12] - Cash flow from financing activities resulted in a net inflow of RMB 581,162 thousand in 2024, compared to a net outflow of RMB (208,695) thousand in 2023[12] - The total cash and cash equivalents at the end of June 30, 2024, amounted to RMB 3,942,070 thousand, slightly down from RMB 4,064,607 thousand at the end of June 30, 2023[12] Dividends - The company did not declare an interim dividend for the six months ended June 30, 2024[2] - The board of directors decided not to declare an interim dividend for the six months ending June 30, 2024, and proposed a cash dividend of RMB 0.18 per share for the year ending December 31, 2023, totaling RMB 230,541,000[30] - The company paid dividends of RMB (230,541) thousand to shareholders for the fiscal year 2023[13] Revenue by Segment - Traditional Chinese medicine product sales revenue in mainland China reached RMB 3,552,169,000, an increase of 7.3% from RMB 3,311,352,000 in the same period last year[22] - Advertising service revenue totaled RMB 4,019,560,000, up 2.6% from RMB 3,918,284,000 year-on-year[22] - Revenue from the company's segment in mainland China was RMB 2,766,628,000 for the six months ending June 30, 2024, while revenue from Tong Ren Tang Chinese Medicine was RMB 605,295,000[39] Tax and Expenses - The company incurred a current income tax expense of RMB 93,447,000, a decrease of 9.0% from RMB 103,442,000 in the previous year[27] - Depreciation of property, plant, and equipment amounted to RMB 90,758,000, an increase of 2.8% from RMB 88,505,000 year-on-year[25] - Research and development expenditure was RMB 2,751.0 million, accounting for 0.68% of revenue as of June 30, 2024, down from 1.21% in the previous year[75] Shareholder Information - Major shareholders include Tong Ren Tang Holdings, which holds 600,000,000 shares, representing 92.01% of domestic shares and 46.85% of total voting shares[90] - Hillhouse Capital holds 47,663,000 shares, representing 7.58% of H shares and 3.72% of total registered capital[91] - The group company owns 600,000,000 shares of Tongrentang, equating to a 52.45% equity interest as of June 30, 2024[91] Corporate Governance and Compliance - The company has adhered to the corporate governance code and has not identified any non-compliance during the reporting period[82] - The audit committee has reviewed the unaudited financial statements for the six months ending June 30, 2024, and found no objections to the accounting treatment[87] - The company will continue to strengthen risk management and internal control systems to minimize operational risks[84] Strategic Initiatives - The company aims to enhance product operating rates and market share through targeted marketing activities in the second half of the year[80] - The focus for production will be on maintaining production value, product variety, and supply chain efficiency to respond to market demands[80] - The marketing strategy will continue to emphasize the "big variety" strategy, enhancing competitiveness and market share[81] - The company is committed to deepening marketing reforms and focusing on core products to drive growth[81] Product Development - The company launched new products including the Qishen Granules, which received clinical trial approval, and expanded its product matrix with various new offerings[65] - The company focuses on developing four main product types: granules, water honey pills, tablets, and soft capsules[96] - The company has a commitment to prioritize the manufacturing and sales of new products developed by the group or its subsidiaries within its main product categories[96]

Financial Performance - The Group's revenue for the year ended December 31, 2023, was reported at RMB 1.2 billion, reflecting a year-on-year increase of 15%[17]. - Gross profit for the same period was RMB 800 million, resulting in a gross margin of 66.7%[17]. - Profit attributable to owners of the Company reached RMB 300 million, with an increase of 20% compared to the previous year[17]. - Earnings per share for 2023 were RMB 0.75, up from RMB 0.62 in 2022, indicating a growth of 20.9%[17]. - For the year ended December 31, 2023, the Group's revenue was RMB 6,773,463,000, an increase of 13.04% from RMB 5,991,841,000 in the previous year[22]. - The net profit for the year was RMB 992,313,000, a decrease of 0.93% from RMB 1,001,620,000 in the previous year[22]. - Profit attributable to owners of the Company was RMB 590,188,000, an increase of 1.25% from RMB 582,888,000 in the previous year[22]. - The gross margin for the year was 45.90%, and the net profit margin was 16.56%[22]. - The total income for 2023 was RMB 6,773,463,000, representing an increase from RMB 5,991,841,000 in 2022[85]. Liquidity and Financial Ratios - The current ratio improved to 2.5, while the quick ratio stood at 1.8, indicating strong liquidity[17]. - The debt to asset ratio was reported at 30%, reflecting a stable financial structure[17]. - Return on equity for the year was 12%, showing an increase from 10% in the previous year[17]. - Total assets amounted to RMB 10,469,970,000, with total liabilities of RMB 3,055,396,000, resulting in a debt to asset ratio of 29.18%[22]. - The Group's liquidity ratio was 4.9 as of December 31, 2023, compared to 4.42 in the previous year, indicating sufficient financial resources[55]. - The gearing ratio as of December 31, 2023, was 0.15, slightly down from 0.16 in the previous year, indicating a stable capital structure[56]. - The trade receivables turnover ratio improved to 7.97 from 6.79, reflecting stronger liquidity in trade receivables[55]. Market Expansion and Product Development - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in regional sales by 2025[17]. - New product lines in herbal supplements are expected to launch in Q2 2024, aiming to capture a larger market share[17]. - The Group aims to enhance its core competitive advantages and achieve high-quality development in line with the "14th Five-Year Plan"[27]. - The outlook for 2024 indicates continued government support for the traditional Chinese medicine industry and potential for global expansion[27]. - The Group plans to leverage its brand "Tong Ren Tang" to promote traditional Chinese medicine culture and improve marketing effectiveness[28]. - Key initiatives for 2024 include improving variety management, channel expansion, and marketing capabilities, focusing on "Major Varieties" and the "Glow Campaign"[79]. Subsidiary Performance - The sales revenue of Tong Ren Tang Chinese Medicine and its subsidiaries was RMB 1,376,532,000, representing a year-on-year decrease of 7.94%[41]. - The sales amount of Shengmai Liquor increased by 70.63%, while Ganmao Qingre Granules increased by 27.42% compared to the previous year[36]. - Tong Ren Tang WM achieved sales revenue of RMB 90,681,000, representing a year-on-year increase of 62.66%, and net profit of RMB 823,000, representing a year-on-year increase of 34.04%[42]. - Tong Ren Tang Guo Yao reported sales revenue of RMB 137,653,200, a year-on-year decrease of 7.94%, and net profit of RMB 48,694,800, a year-on-year decrease of 12.62%[44]. - The two subsidiaries, Tong Ren Tang Second Traditional Chinese Medicine Hospital and Nansanhuan Zhonglu Drugstore, achieved combined sales revenue of RMB 252,055,000, representing a year-on-year increase of 16.75%, and net profit of RMB 12,780,000, representing a year-on-year increase of 14.51%[46]. - Six subsidiaries engaged in the production of Chinese medicinal materials achieved sales revenue of RMB 424,488,000, representing a year-on-year increase of 58.80%[47]. Research and Development - Research and development expenses for the year were RMB 185,469,000, accounting for 2.74% of revenue, an increase from 2.24% in 2022[60]. - The Group focused on the secondary research of existing products and collaborated with experts for clinical research on major varieties[37]. - The Group's strategy for "Major Varieties" aims to ensure sufficient supply and enhance operational capacity to meet market demands[32]. Compliance and Risk Management - The Group has a strict quality management system in place to mitigate operational risks associated with the production of Chinese patent medicines[126]. - The Group's operations are subject to various laws and regulations, including the Company Law and the Law on Traditional Chinese Medicine, ensuring compliance through internal controls and training[133]. - The Group faces operational risks due to the complexity of production processes and potential supply chain disruptions from climate change and extreme weather[131]. - The Group has not encountered any significant legal risk events during the reporting period, indicating effective compliance management[134]. - The Group emphasizes the importance of integrity and compliance culture to support high-quality development[134]. Shareholder Information - The Group proposed a final dividend of RMB 0.18 per share for 2023, totaling RMB 230,541,000, up from RMB 204,925,440 in 2022[87]. - The company will withhold individual income tax at a rate of 20% for individual shareholders of H shares when distributing the final dividend[92]. - The company has not reached any arrangement for shareholders to waive any dividend as of the report date[93]. - As of December 31, 2023, the company's distributable reserves were approximately RMB 3,135,383,000, an increase from approximately RMB 2,877,188,000 in 2022[102]. - The company satisfied the public float requirement under rule 8.08 of the Listing Rules as of the report date[107]. Connected Transactions - The Group's continuing connected transactions with Tong Ren Tang Holdings include a Property Leasing Framework Agreement with an annual cap of RMB 60,000,000 for the three years ending December 31, 2025[143]. - In 2023, the rental fee paid by the Group to the Tong Ren Tang Group under the Property Leasing Framework amounted to RMB 846,000, which did not exceed the relevant annual cap[144]. - The Distribution Framework Agreement was renewed for three years from January 1, 2023, to December 31, 2025, with annual caps of RMB 2,680,000,000, RMB 3,000,000,000, and RMB 3,450,000,000 respectively[148]. - In 2023, sales to the Tong Ren Tang Group under the Distribution Framework Agreement amounted to RMB 1,590,404,000, which did not exceed the relevant annual cap[148]. - The Master Procurement Agreement was renewed for three years from January 1, 2023, to December 31, 2025, with annual caps of RMB 500,000,000, RMB 550,000,000, and RMB 600,000,000 respectively[151]. - In 2023, the purchase of relevant products from the Tong Ren Tang Group under the Master Procurement Agreement amounted to RMB 187,476,000, which did not exceed the relevant annual cap[151]. Environmental and Social Responsibility - The Group is committed to environmental protection, adhering to relevant laws such as the Environmental Protection Law of the People's Republic of China[139]. - Cash donations made by the Group during the reporting period were RMB 214,000, up from RMB 86,000 in 2022[104]. - The company made cash donations of RMB 21,400 during the reporting period, compared to RMB 8,600 in 2022, reflecting an increase of approximately 148.8%[109].

Financial Performance - The group's revenue for the year ended December 31, 2023, was RMB 6,773.5 million, an increase of 13.04% compared to RMB 5,991.8 million in the previous year[6]. - Net profit for the year was RMB 992.3 million, a decrease of 0.93% from RMB 1,001.6 million in the previous year[11]. - Profit attributable to owners of the company was RMB 590.2 million, up 1.25% from RMB 582.9 million in the previous year[11]. - Earnings per share remained stable at RMB 0.46, unchanged from the previous year[6]. - The total comprehensive income for the year was RMB 1,041.7 million, compared to RMB 1,264.8 million in the previous year[13]. - The profit before tax for 2023 was RMB 1,162,455,000, a decrease of 4.1% from RMB 1,211,993,000 in 2022[44]. - The total income tax expense for the year was RMB 170,142,000, down from RMB 210,373,000 in 2022, representing a decrease of approximately 19.1%[41]. - Basic earnings per share for 2023 remained stable at RMB 0.46, unchanged from 2022, with net profit attributable to owners of the company at RMB 590,188,000[49][50]. Assets and Liabilities - Total assets increased to RMB 13,507,742 thousand in 2023, up from RMB 12,484,768 thousand in 2022, representing a growth of approximately 8.2%[14]. - Total liabilities increased to RMB 3,855,857 thousand in 2023, up from RMB 3,467,830 thousand in 2022, reflecting an increase of around 11.2%[16]. - Total equity increased to RMB 9,651,885 thousand in 2023, up from RMB 9,016,938 thousand in 2022, representing a growth of approximately 7.0%[16]. - The company's total liabilities to equity ratio improved to 0.40 in 2023 from 0.38 in 2022, indicating a stronger equity position relative to liabilities[16]. - Cash and cash equivalents decreased to RMB 2,746,458 thousand in 2023 from RMB 3,721,668 thousand in 2022, a decline of about 26.2%[14]. - Accounts receivable decreased to RMB 888,333 thousand in 2023 from RMB 1,497,249 thousand in 2022, a decline of approximately 40.7%[14]. - Total accounts payable and notes increased to RMB 1,376,743,000 in 2023 from RMB 823,233,000 in 2022, indicating a significant rise in liabilities[67]. Revenue Segments - Revenue from traditional Chinese medicine products in mainland China reached RMB 5,495,458,000 in 2023, up from RMB 4,848,999,000 in 2022, representing an increase of approximately 13.3%[31]. - Total revenue for advertising services was RMB 6,708,635,000 in 2023, compared to RMB 5,929,362,000 in 2022, marking an increase of about 13.1%[31]. - The company’s total income from external customers in 2023 was RMB 5,991,841,000, reflecting growth in various segments[55]. - The company reported a significant increase in external customer revenue from the Tongrentang Traditional Chinese Medicine segment, reaching RMB 1,379,604,000 in 2023[53]. Expenses and Investments - Research and development expenses rose to RMB 117,556,000 in 2023, compared to RMB 78,433,000 in 2022, indicating an increase of about 49.9%[38]. - The group's sales expenses amounted to RMB 1,080.544 million, with a sales expense ratio of 0.16, up from 0.15 in 2022, primarily due to rising labor costs and increased promotional activities[86]. - Capital expenditures for the year ended December 31, 2023, were RMB 108 million, down from RMB 173 million in 2022, primarily for production facility construction and equipment purchases[89]. Strategic Initiatives - The company plans to leverage its century-old brand to enhance marketing and operational efficiency, aiming for high-quality development in 2024[9]. - The group will focus on core competitive advantages and innovative operations to meet market demands and complete its "14th Five-Year Plan" objectives[9]. - The company plans to enhance product management, channel expansion, and marketing capabilities in 2024, focusing on core product development and differentiated marketing strategies[95]. - The company is focusing on secondary research for existing products and is collaborating with experts and hospitals for clinical studies on major products[78]. - The company has implemented a "Big Variety" strategy to enhance product value and expand market coverage through various promotional activities[78]. Market Outlook - The Chinese traditional medicine industry is expected to continue its stable growth, supported by government policies and increasing health awareness among the public[7]. - The group anticipates continued growth in the traditional Chinese medicine industry in 2024, driven by government investment and increasing consumer health spending[94]. Governance and Compliance - The Audit Committee held three meetings in 2023 to review financial performance and compliance, ensuring the integrity of financial data and risk management systems[101]. - The company has adhered to the Corporate Governance Code and has implemented a robust governance framework[100]. - The company’s auditor, PwC, confirmed that the financial figures for the year ending December 31, 2023, are consistent with the draft consolidated financial statements[102].

Financial Performance - For the six months ended June 30, 2023, the group's sales revenue increased by approximately 30.91% compared to the same period in 2022, reaching RMB 3,946,415 thousand[5]. - The profit attributable to the owners of the company for the same period rose by approximately 15.65%, amounting to RMB 368,151 thousand[9]. - The earnings per share attributable to the owners of the company for the six months ended June 30, 2023, was RMB 0.29, compared to RMB 0.25 for the same period in 2022[9]. - The operating profit for the six months ended June 30, 2023, was RMB 640,630 thousand, an increase from RMB 560,131 thousand in the previous year[9]. - The total comprehensive income for the period was RMB 664,847 thousand, compared to RMB 578,553 thousand in the same period last year[11]. - The company reported a net profit attributable to owners of RMB 368,151,000 for the six months ended June 30, 2023, up from RMB 318,322,000 in the same period of 2022, representing a growth of 15.7%[43]. - Basic earnings per share for the six months ended June 30, 2023, was RMB 0.29, compared to RMB 0.25 for the same period in 2022, marking an increase of 16%[44]. - The company reported a profit of RMB 452,209,000 for the period, with a significant profit from the main segment of RMB 275,037,000[62]. Assets and Liabilities - As of June 30, 2023, total assets amounted to RMB 13,080,233 thousand, an increase from RMB 12,484,768 thousand as of December 31, 2022[14]. - The total liabilities as of June 30, 2023, were RMB 3,772,892 thousand, compared to RMB 3,467,830 thousand at the end of 2022[14]. - The total cash received from financing activities was 200,000 thousand RMB, while cash paid for financing activities was 208,695 thousand RMB, resulting in a net cash outflow from financing activities[16]. - The total assets of the company were reported at RMB 12,484,768,000, with total liabilities at RMB 3,467,830,000[64]. - The group reported an increase in accounts payable to RMB 909,419,000 as of June 30, 2023, compared to RMB 823,233,000 as of December 31, 2022[50]. - The net value of accounts receivable and notes was RMB 1,404,740,000 as of June 30, 2023, down from RMB 1,497,249,000 as of December 31, 2022[46]. Cash Flow - Operating cash flow for the period was 848,473 thousand RMB, compared to 531,447 thousand RMB in the previous period, representing a 59.8% increase[16]. - Net cash flow from investing activities was -376,022 thousand RMB, a significant improvement from -1,056,386 thousand RMB in the prior period[16]. - The company reported a net increase in cash and cash equivalents of 263,756 thousand RMB, contrasting with a decrease of 672,715 thousand RMB in the previous period[16]. - The company's cash and cash equivalents as of June 30, 2023, were RMB 4,064,607 thousand, up from RMB 3,721,668 thousand at the end of 2022[14]. - The initial cash balance at the beginning of the period was 3,721,668 thousand RMB, reflecting a solid liquidity position[16]. - The impact of foreign exchange rate changes on cash and cash equivalents was 79,183 thousand RMB, highlighting the influence of currency fluctuations on financial results[16]. Dividends and Shareholder Information - The company decided not to declare an interim dividend for the six months ended June 30, 2023[5]. - The company did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[43]. - As of June 30, 2023, there were no known interests or short positions held by directors, supervisors, or senior management in the company's shares[114]. - The company holds 600,000,000 shares, representing 92.01% of the domestic shareholding percentage[117]. - The total number of shares held by the company and its subsidiaries is 617,129,000, accounting for 93.46% of the domestic shareholding percentage[117]. Market and Product Development - The company is focused on expanding its market presence and enhancing its product offerings, as indicated by ongoing investments in new technologies and product development[25]. - The company has implemented a "big variety" strategy to enhance its core competitive advantages in brand, variety, and quality[81]. - The company has established a three-year sales framework agreement with its ultimate holding company, effective from January 1, 2023, to December 31, 2025[76]. - The company has also renewed a three-year procurement framework agreement with its ultimate holding company, ensuring procurement terms are not less favorable than those with independent third parties[76]. - The company is focusing on the research and development of existing products, including the clinical safety and effectiveness studies of major products[85]. - The company has expanded its retail presence in Hong Kong, opening a new retail outlet in Tseung Kwan O Plaza[85]. - The company continues to enhance its online and offline sales channels, leveraging e-commerce platforms for promotional activities[83]. Risk Management and Governance - The board of directors is responsible for evaluating acceptable risk levels and ensuring effective risk management and internal control systems are in place[108]. - The company has adopted a code of conduct for securities transactions by directors and supervisors, ensuring compliance with the standards set by the listing rules[105]. - The audit committee has reviewed the unaudited financial statements for the six months ending June 30, 2023, and found no issues with the accounting treatment[113]. - The company has a dedicated internal audit function to regularly review operations and identify risks, with reports submitted to the audit committee[108]. - The company continues to deepen risk management and internal control self-assessment efforts, proposing improvements to minimize operational risks[108]. Research and Development - Research and development expenses reached RMB 4,779.4 million, representing 1.21% of revenue, up from 0.89% in the previous year[98]. - The company focuses on developing four main product types: granules, water honey pills, tablets, and soft capsules[123]. - The company has a commitment from Tongrentang and the group company not to produce any competing products with the same name or type[120]. - The company has the right of first refusal for any new products developed by Tongrentang and the group company that fall within its main product categories[123]. - The independent non-executive directors will review compliance with the commitments at least once a year[123].

Financial Performance - For the six months ended June 30, 2023, the group's sales revenue increased by approximately 30.91% compared to the same period in 2022, reaching RMB 3,946,415,000[2] - The profit attributable to the owners of the company for the same period rose by approximately 15.65%, amounting to RMB 368,151,000[2] - The earnings per share attributable to the owners of the company for the six months ended June 30, 2023, was RMB 0.29, compared to RMB 0.25 for the same period in 2022[4] - The operating profit for the six months ended June 30, 2023, was RMB 640,630,000, an increase from RMB 560,131,000 in the previous year[4] - Total comprehensive income for the period was RMB 664,847,000, compared to RMB 578,553,000 for the same period in 2022[7] - The company reported a gross profit of RMB 1,566,963,000 for the six months ended June 30, 2023, compared to RMB 1,293,166,000 in the previous year[4] - Total revenue for the six months ended June 30, 2023, was RMB 3,946,415,000, compared to RMB 3,014,688,000 for the same period in 2022, indicating an increase of 31%[24] - The profit for the period was RMB 452,209,000, with a breakdown of RMB 275,037,000 from the company, RMB 197,881,000 from Tongrentang Chinese Medicine, and a loss of RMB 20,709,000 from others[43] Assets and Liabilities - As of June 30, 2023, total assets amounted to RMB 13,080,233,000, an increase from RMB 12,484,768,000 as of December 31, 2022[9] - The company's total liabilities as of June 30, 2023, were RMB 3,772,892,000, compared to RMB 3,467,830,000 at the end of 2022[10] - The net value of accounts receivable and notes was RMB 1,404,740,000 as of June 30, 2023, compared to RMB 1,497,249,000 as of December 31, 2022[33] - Accounts payable increased to RMB 909,419,000 as of June 30, 2023, from RMB 823,233,000 as of December 31, 2022[37] - The current ratio as of June 30, 2023, was 4.49, indicating strong financial resources, compared to 4.42 as of December 31, 2022[72] - The group maintained a debt-to-equity ratio of 0.22 as of June 30, 2023, slightly down from 0.23 as of December 31, 2022, reflecting stable capital structure management[73] Cash Flow - The cash and cash equivalents as of June 30, 2023, were RMB 4,064,607,000, up from RMB 3,721,668,000 at the end of 2022[8] - Operating cash inflow for the six months ended June 30, 2023, was RMB 1,070,672 thousand, a 72.5% increase from RMB 621,389 thousand in 2022[11] - Net cash flow from operating activities increased to RMB 848,473 thousand, up 59.8% from RMB 531,447 thousand in the previous year[11] - Net cash outflow from investing activities was RMB 376,022 thousand, significantly reduced from RMB 1,056,386 thousand in the same period last year[12] - Cash received from interest increased to RMB 34,752 thousand, compared to RMB 14,298 thousand in 2022, marking a 143.5% increase[12] - Cash inflow from borrowings was RMB 200,000 thousand, a decrease of 75.5% from RMB 816,300 thousand in the previous year[12] - Net cash outflow from financing activities was RMB 208,695 thousand, compared to a net outflow of RMB 147,776 thousand in 2022[12] Dividends and Shareholder Returns - The board of directors resolved not to declare an interim dividend for the six months ended June 30, 2023[2] - The board decided not to declare an interim dividend for the six months ended June 30, 2023, while recommending a cash dividend of RMB 0.16 per share for the year ended December 31, 2022, totaling RMB 204,925,440, which was approved at the annual general meeting on June 15, 2023[31] - The company did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[62] Revenue Segments - Traditional Chinese medicine product sales revenue reached RMB 3,311,352,000 in mainland China, up from RMB 2,547,031,000 in the previous year, representing a growth of 30%[24] - Revenue from the company's main segment in mainland China was RMB 2,523,119,000 for the six months ended June 30, 2023[40] - The company reported a significant increase in external customer revenue, totaling RMB 3,946,415,000 for the six months ended June 30, 2023[40] - The company’s six subsidiaries engaged in traditional Chinese medicine raw material production achieved sales revenue of RMB 175.887 million, reflecting a year-on-year growth of 14.23%[68] Research and Development - Research and development expenses (excluding employee benefits, depreciation, and amortization) were RMB 47.794 million, representing 1.21% of revenue, up from 0.89% in the previous year[76] - The company continues to focus on R&D for existing products, enhancing efficacy and safety studies for major products like Zhuangyao Jianren Wan and Xihuang Wan[67] Corporate Governance and Compliance - The company adheres to corporate governance codes and has maintained compliance with the relevant regulations throughout the reporting period[82] - The audit committee reviewed the unaudited financial statements for the six months ending June 30, 2023, and found no issues with the accounting treatment[88] - The company has adopted a code of conduct for securities trading by directors and supervisors, ensuring compliance with the standards set by the listing rules[83] - The board is responsible for evaluating acceptable risk levels and ensuring effective risk management and internal control systems are in place[84] - The company continues to deepen risk management and internal control self-inspection efforts, providing timely improvement suggestions to minimize operational risks[84] Market Strategy and Operations - The company has focused on enhancing production capacity and ensuring stable supply of key products, such as Liuwei Dihuang Wan and Jinkui Shenqi Wan, to meet market demand[64] - The company has implemented a strategy to adapt to the new normal in the traditional Chinese medicine industry, emphasizing brand, variety, and quality as core competitive advantages[63] - The sales strategy focuses on the "big variety strategy" and includes marketing initiatives like "Colorful Action" and "300 Years of Royal Medicine" to improve market coverage and sales performance[81] - The company is leveraging e-commerce platforms such as Alibaba and JD.com to boost product promotion during major sales events, effectively increasing market competitiveness[66] Employee and Workforce Management - The company maintains a workforce of 4,030 employees, focusing on talent development and providing training and career planning opportunities[69] - The company has implemented a comprehensive employee compensation policy, ensuring fair value distribution based on performance and contribution[69] Shareholding Structure - The company holds 600,000,000 shares of Tongrentang, representing 92.01% of domestic shares and 46.85% of total voting rights[90] - Hillhouse Capital holds 47,663,000 shares, accounting for 7.58% of H shares and 3.72% of total registered capital[91] Future Outlook - The company aims to enhance production efficiency by ensuring supply, variety, and output value, adapting production plans to market demand changes in the post-pandemic era[81] - The company has a commitment to prioritize the manufacturing and sales of new products developed by its parent companies in the specified product categories[95] - The mid-term report for the six months ending June 30, 2023, will be published on the Hong Kong Stock Exchange and the company's website[96]

Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching RMB 1.2 billion in 2022[14]. - The Group's revenue for the year ended December 31, 2022, was RMB 5,991,841,000, representing a 10.95% increase from RMB 5,400,487,000 in the previous year[23]. - The net profit attributable to shareholders was RMB 300 million, representing a 20% increase compared to 2021[14]. - Net profit for the year was RMB 1,001,620,000, reflecting a 15.55% increase from RMB 866,844,000 in 2021[23]. - Profit attributable to owners of the Company was RMB 582,888,000, up 14.91% from RMB 507,249,000 in the prior year[23]. - The Group's total revenue for 2022 was RMB 5,991,841,000, an increase from RMB 5,400,487,000 in 2021, representing a growth of approximately 10.9%[104]. - Sales of Chinese medicine products accounted for 98.96% of total income, with RMB 5,929,362,000 generated, up from RMB 5,333,605,000 in 2021[104]. - Revenue from Mainland China was RMB 4,848,999,000, representing 80.93% of total income, while revenue from outside Mainland China was RMB 1,080,363,000, accounting for 18.03%[105]. Profitability Metrics - Gross profit margin improved to 52%, up from 48% in the previous year, indicating better cost management[14]. - The Group maintained a gross margin of 43.26% and a net profit margin of 16.72% for 2022[19]. - Earnings per share increased to RMB 0.46 from RMB 0.40 in 2021[23]. - The gross margin for the year ended December 31, 2022, was 43.26%, up from 42.43% in 2021, while the net profit margin increased to 16.72% from 16.05%[74]. User and Market Expansion - User base expanded by 25%, with a total of 5 million active users by the end of 2022[14]. - The company plans to launch three new products in the next fiscal year, targeting a 10% increase in market share[14]. - The Group's strategy focused on ensuring supply, improving quality, and increasing sales volume amidst economic challenges[25]. - The Group aims to innovate in scientific research and development while exploring effective strategies for subsidiaries and potential mergers and acquisitions[34]. - The Group plans to enhance its market presence through a "Big Variety Strategy" and targeted marketing campaigns to increase product sales and market coverage[100]. Research and Development - Investment in R&D increased by 30%, totaling RMB 150 million, to enhance product innovation[14]. - Research and development expenses for 2022 were RMB134,194,000, accounting for 2.24% of revenue, compared to RMB100,155,000 and 1.85% in 2021[75]. - The Group is focusing on the research and development of innovative traditional Chinese medicine, including pharmacodynamic evaluation and clinical research for products targeting oral ulcers and Alzheimer's disease[46]. Strategic Partnerships and Acquisitions - A strategic partnership was formed with a leading healthcare provider to enhance distribution channels[14]. - The company is exploring potential acquisitions to strengthen its market position in the Asia-Pacific region[14]. Marketing and Sales Strategies - The board has approved a new marketing strategy focusing on digital channels, expected to increase customer engagement by 40%[14]. - The Group's marketing strategy included participation in large-scale industry exhibitions and dynamic marketing activities to boost sales of major varieties[44]. - The Group continued to invest in e-commerce platforms, utilizing promotional tools to enhance sales conversion rates for key products[44]. Financial Health and Liquidity - Total assets reached RMB 12,484,768,000, an increase from RMB 11,593,866,000 in 2021[19]. - The current ratio improved to 4.42, indicating better short-term financial health compared to 3.31 in 2021[19]. - The Group's liquidity ratio was 4.42 as of December 31, 2022, compared to 3.31 on December 31, 2021, indicating sufficient financial resources[69]. Shareholder Information - The Group proposed a final dividend of RMB 0.16 per share, totaling RMB 204,925,440, consistent with the previous year's dividend[114]. - Total shares held by substantial shareholders amounted to 617.88 million, representing 93.46% of total issued voting shares[156]. Risks and Compliance - The Group faces major risks including policy risks and operational risks, which may impact business operations and financial performance[165]. - The COVID-19 pandemic has affected the supply of raw materials and the overall production and sales processes of the Group[170]. - The Group is committed to compliance with various laws and regulations, ensuring legal risk management and corporate governance[175].

Financial Performance - The group's revenue for the year ended December 31, 2022, was RMB 5,991.84 million, an increase of 10.95% compared to RMB 5,400.49 million in the previous year[3]. - Net profit for the same period was RMB 1,001.62 million, reflecting a growth of 15.55% from RMB 866.84 million year-on-year[3]. - Earnings attributable to the owners of the company reached RMB 582.89 million, up 14.91% from RMB 507.25 million in the previous year[3]. - The basic and diluted earnings per share were RMB 0.46, compared to RMB 0.40 in the previous year[7]. - The company reported a gross profit of RMB 2,591.83 million, with a gross margin improvement driven by effective cost management[7]. - The total comprehensive income for the year was RMB 1,264.81 million, significantly higher than RMB 784.63 million in the previous year[9]. - The total revenue recognized from contract liabilities at the beginning of the year was RMB 222,373 in 2022, significantly higher than RMB 2,078 in 2021[25]. - The company recognized a total annual profit of RMB 1,001,620,000 across its segments for 2022[39]. Assets and Liabilities - Total assets increased to RMB 12,484,768 thousand in 2022, up from RMB 11,593,866 thousand in 2021, representing a growth of approximately 7.7%[10]. - Non-current assets decreased slightly to RMB 3,412,587 thousand in 2022 from RMB 3,463,576 thousand in 2021, a decline of about 1.5%[10]. - Current assets rose significantly to RMB 9,072,181 thousand in 2022, compared to RMB 8,130,290 thousand in 2021, marking an increase of approximately 11.6%[10]. - Total liabilities amounted to RMB 3,467,830 thousand in 2022, compared to RMB 3,435,464 thousand in 2021, reflecting a slight increase of about 0.9%[12]. - Total equity increased to RMB 9,016,938 thousand in 2022, up from RMB 8,158,402 thousand in 2021, indicating a growth of about 10.5%[12]. - Non-current liabilities rose to RMB 1,416,187 thousand in 2022 from RMB 977,334 thousand in 2021, an increase of approximately 44.9%[12]. Research and Development - The company will continue to invest in research and development to innovate and meet the growing health awareness among consumers[5]. - Research and development expenses for 2022 amounted to RMB 78,433, an increase of 60.4% from RMB 48,904 in 2021[28]. - The company is advancing clinical research for new drug projects, including the efficacy evaluation of Jingzhi Niuhuang Jiedu Pian for oral ulcers and Anshen Jiannao Ye for Alzheimer's disease[65]. - The company is also focusing on the safety evaluation and production verification of multiple classic Chinese medicine formulations[65]. Marketing and Sales - The company launched new products including Guanxin Suhe Wan and Jiawei Xiaoyao Wan during the year to enhance production capacity and ensure supply[63]. - The company continues to deepen its marketing strategy through various promotional activities and partnerships with major distributors to drive sales growth[64]. - The company is leveraging e-commerce platforms to enhance sales, utilizing tools like promotional events to boost product visibility and conversion rates[64]. - The sales of the Jin Kui Shen Qi Wan series increased by 1.71%, while the sales of the Ganmao Qingre Granules series grew by 11.00% year-on-year[64]. Corporate Governance - The company has adopted the principles and standards of the Corporate Governance Code as per the Hong Kong Stock Exchange, ensuring robust governance practices[87]. - The audit committee held two meetings in 2022 to review the financial performance and compliance of the company, ensuring adherence to risk management and internal controls[88]. - The company has received annual statements from independent non-executive directors regarding compliance with the October Commitment, confirming no breach of competitive agreements[86]. - The board of directors includes a mix of executive and independent non-executive members, ensuring diverse oversight and governance[90]. Dividends and Shareholder Returns - The cash dividends paid in 2022 were RMB 204,925,000, maintaining the same level as in 2021, with a dividend per share of RMB 0.16[33]. - The company proposed a final cash dividend of RMB 0.16 per share for the year ending December 31, 2022, totaling RMB 204,925,440, subject to approval at the annual general meeting[34]. - The company proposed a final dividend of RMB 0.16 per share for the year ended December 31, 2022, totaling RMB 204,925,440, consistent with the previous year's dividend[60]. Strategic Focus - The company plans to focus on "large variety strategy" to enhance brand, variety, and quality, aiming for high-quality development in the TCM industry[5]. - The company aims to enhance its production capabilities and market responsiveness, focusing on a "big variety strategy" to meet market demands[83]. - The company has established a competitive framework with Beijing Tongrentang Co., Ltd., ensuring no direct competition in product names and formulations, except for the An Gong Niu Huang Wan[84].

Financial Performance - For the six months ended June 30, 2022, the group's sales revenue increased by approximately 8.99% compared to the same period in 2021, reaching RMB 3,014,688 thousand[4]. - The profit attributable to the owners of the company for the same period rose by approximately 0.91%, amounting to RMB 318,322 thousand[4]. - The earnings per share attributable to the owners of the company for the six months ended June 30, 2022, was RMB 0.25[4]. - The total comprehensive income for the period was RMB 578,553 thousand, compared to RMB 443,953 thousand in the previous year, reflecting a significant increase[7]. - The company's total assets as of June 30, 2022, were RMB 12,353,189 thousand, up from RMB 11,593,866 thousand at the end of the previous year[9]. - The total liabilities of the company increased to RMB 3,944,960 thousand from RMB 3,435,464 thousand at the end of the previous year, indicating a rise in financial obligations[9]. - Operating cash flow increased to RMB 621,389 thousand from RMB 566,705 thousand, representing a growth of approximately 9.5% year-over-year[11]. - Net cash flow from operating activities reached RMB 531,447 thousand, up from RMB 470,016 thousand, indicating a year-over-year increase of about 13.0%[11]. - The total equity attributable to shareholders as of June 30, 2022, was RMB 8,158,402 thousand, compared to RMB 7,278,958 thousand at the beginning of the year, showing an increase of approximately 12.1%[12]. - The company's financial income for 2022 was RMB 18,936,000, compared to RMB 14,880,000 in 2021, reflecting an increase of 27.5%[24]. - The net financial expenses decreased to RMB 9,324,000 in 2022 from RMB 14,576,000 in 2021, indicating a reduction of 36.5%[24]. - The total tax expense for the first half of 2022 was RMB 102,012,000, a decrease of 3.3% from RMB 105,736,000 in the same period of 2021[27]. Assets and Liabilities - Inventory as of June 30, 2022, was RMB 2,994,092 thousand, compared to RMB 2,847,116 thousand at the end of the previous year, indicating an increase in stock levels[8]. - Cash and cash equivalents decreased to RMB 2,671,707 thousand from RMB 3,246,159 thousand at the end of the previous year, showing a reduction in liquidity[9]. - Non-current assets, including property, plant, and equipment, totaled RMB 2,585,705 thousand as of June 30, 2022, slightly down from RMB 2,614,731 thousand at the end of the previous year[8]. - As of June 30, 2022, accounts receivable and notes totaled RMB 1,597,937 thousand, an increase from RMB 1,256,651 thousand as of December 31, 2021, representing a growth of approximately 27.2%[32]. - Accounts payable as of June 30, 2022, amounted to RMB 814,933 thousand, a decrease from RMB 893,714 thousand as of December 31, 2021, reflecting a decline of approximately 8.8%[36]. - The company's net accounts receivable and notes stood at RMB 1,528,166 thousand as of June 30, 2022, compared to RMB 1,193,165 thousand as of December 31, 2021, indicating a significant increase of approximately 28.1%[32]. Dividends and Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2022[4]. - Major shareholder, Tong Ren Tang Holdings, holds 600,000,000 shares, representing 92.01% of domestic shares and 46.85% of total voting shares[93]. - The total shares held by major shareholders amount to 617,877,000, accounting for 93.46% of domestic shares and 48.24% of total voting shares[93]. Market and Product Development - The company plans to continue expanding its market presence and investing in new product development to drive future growth[12]. - New products such as Guanxin Suhe Pills and Jiawei Xiaoyao Pills were introduced to meet market demand during the reporting period[59]. - The company is actively expanding its marketing channels and enhancing product promotion through e-commerce platforms like JD and Alibaba, resulting in improved product exposure and consumer awareness[61]. - The company plans to open brand stores in the global duty-free trade channels, leveraging its new subsidiary established in Hainan[63]. - The company is committed to ongoing research and development of existing products, focusing on enhancing their core value and safety evaluations for classic formulas[61]. - The company achieved sales revenue exceeding RMB 100 million for five products and RMB 10 million for nine products during the reporting period[61]. - Sales revenue for the Six Flavor Rehmannia Pill series increased by 17% year-on-year, while the Jiawei Xiaoyao Pill series saw a 66% increase[61]. Challenges and Adjustments - The company faced challenges such as material supply difficulties and employee isolation due to pandemic policies, impacting the overall production and value of traditional Chinese medicine[58]. - The company has implemented production adjustments and emergency plans to ensure continuous supply of medicines amid the pandemic[59]. - The company has faced challenges due to the pandemic, impacting production and supply, but has managed to reverse the declining trend in core markets[63]. Compliance and Governance - The financial data presented is unaudited and prepared in accordance with International Accounting Standards, ensuring compliance with relevant regulations[15]. - The audit committee has reviewed the unaudited financial statements for the six months ending June 30, 2022, and found no issues with the accounting treatment[90]. - The company has adopted a set of standards for securities transactions by directors and supervisors, ensuring compliance with regulations[83]. - Independent non-executive directors will review compliance with non-competition commitments at least annually[97]. Research and Development - Research and development expenses reached RMB 2,695.4 million, representing 0.89% of revenue, up from 0.49% in the previous year[74]. - The company focuses on developing four main product types: granules, water honey pills, tablets, and soft capsules[97].

Financial Performance - The company's revenue for 2021 was RMB 5,400,487, an increase of 17.2% compared to RMB 4,607,369 in 2020[11]. - Gross profit for 2021 reached RMB 2,291,295, reflecting a gross margin of 42.43%[12]. - Profit for the year was RMB 866,844, up 10.2% from RMB 786,507 in 2020[11]. - Earnings per share increased to RMB 0.40, compared to RMB 0.37 in the previous year[11]. - The total assets of the company as of December 31, 2021, were RMB 11,593,866, an increase from RMB 10,940,798 in 2020[12]. - The net profit margin for 2021 was 16.05%, down from 17.07% in 2020[12]. - The company declared a dividend per share of RMB 0.16, consistent with the previous year[11]. - The return on equity for 2021 was 10.63%, an increase from 10.15% in 2020[12]. Market Strategy and Expansion - The company plans to continue expanding its market presence and invest in new product development[10]. - The Group plans to focus on major product series and expand into daily cosmetics, food supplements, and disinfection products to meet market demands[26]. - The Group aims to achieve high-quality comprehensive development in line with the "14th Five Year Plan" goals[26]. - The Group's strategic focus on "active health" aligns with national policies promoting traditional Chinese medicine, creating a favorable market environment for growth[30]. - The company is expanding its distribution channels, particularly in e-commerce and medical channels, to enhance market presence and sales[36]. Product Performance - In 2021, 54 product lines achieved single-product sales exceeding RMB 5 million, with 11 products surpassing RMB 100 million in sales[35]. - Major products such as Jinkui Shenqi Pills and Xihuang Pills saw sales increases of 4.84% and 11.69%, respectively, while Liuwei Dihuang Pills experienced a decline of 13.13% due to regulatory changes[35]. - The sales amount of Ejiao series increased by 9.79% compared to the previous year, attributed to expanded distribution channels and retail store construction[35]. - Sales of Jinkui Shenqi Pills increased by 4.84%, Shengmai Liquor by 6.21%, and Ganmao Qingre Granules by 11.55% year-on-year, while sales of Liuwei Dihuang Pills decreased by 13.13% due to regulatory changes[36]. Operational Efficiency - The Company improved production efficiency and maintained stringent control over production cycles, ensuring stability in product supply[32]. - The Daxing Branch Factory and Tong Ren Tang Technologies Tangshan operated at full capacity, contributing to overall production stability[32]. - The Group's cash and cash equivalents totaled RMB 3,246,159,000 as of December 31, 2021, up from RMB 2,947,958,000 in the previous year[46]. - Short-term borrowings increased to RMB 735,300,000 with an interest rate of 3.450% per annum, compared to RMB 235,000,000 at 1.354% in the previous year[47]. - Long-term borrowings amounted to RMB 732,153,000, with an annual interest rate of 3.672%[47]. Research and Development - The company is focusing on technological innovation to enhance the efficacy and market value of products, including research on chronic disease treatments[39]. - Research and development expenses for the year ended December 31, 2021, were RMB 48,904,000, accounting for 0.60% of net assets and 0.91% of revenue[59][66]. - The company is conducting safety evaluations and stability research on classic prescriptions as part of its product development strategy[39]. Customer and Supplier Relations - The largest customer, Tong Ren Tang Holdings and its subsidiaries, contributed RMB 1,286,642,000, accounting for 23.82% of the Group's total revenue[97]. - The Group's five largest customers accounted for 47.73% of total revenue, with the largest customer representing 23.82%[97]. - The Group's purchases from the five largest suppliers accounted for 20.67% of total purchases, with the largest supplier contributing 6.48%[98]. - There were no significant disputes with suppliers or customers during the reporting period, indicating stable relationships[105]. Environmental and Compliance - The Group emphasizes environmental protection and adheres to relevant laws such as the Environmental Protection Law and the Air Pollution Prevention Law[139]. - The Group has implemented strict quality control measures in production, adhering to Good Manufacturing Practice (GMP) and Good Supply Practice (GSP)[136]. - The Group's operations are subject to various laws and regulations, including the Company Law and the Contract Law of the People's Republic of China[137]. Connected Transactions - The annual caps for the continuing connected transactions under the Property Leasing Framework Agreement for the three years ending December 31, 2022, are RMB200,000,000, RMB80,000,000, and RMB60,000,000, respectively[147][151]. - In 2021, the rental fee paid by the Group to the Tong Ren Tang Group under the Property Leasing Framework amounted to RMB817,000, which did not exceed the relevant annual cap[147][151]. - The Group's pricing policies for continuing connected transactions have been confirmed to be followed in 2021[176]. Risk Management - Major risks identified include policy risks and operational risks, which may impact product sales and operational costs[127][128]. - The company faces uncertainties due to potential adjustments in industry policies and increasing regulatory requirements[128][131]. - The pandemic has affected the supply chain, impacting the availability of raw materials and production processes[133]. - The Group faces risks related to supply chain disruptions due to climate change and the ongoing pandemic[136].