Financial Performance - In 2024, the company achieved operating revenue of RMB 805.857 million, a year-on-year decrease of 33.32%[10] - The net profit attributable to shareholders was RMB 124.661 million, down 55.01% year-on-year, while the net profit after deducting non-recurring gains and losses was RMB 94.536 million, a decrease of 62.80%[10] - The company's total assets and net assets were RMB 346.573 million and RMB 281.990 million, respectively, representing declines of 5.04% and 2.00% compared to the previous year[10] - The company's operating profit for 2024 was RMB 130.715 million, reflecting a significant decline from previous years[8] - Basic earnings per share were RMB 0.33, down 54.17% year-on-year, with diluted earnings per share also at RMB 0.33[10] - The company's income tax expense for the year ended December 31, 2024, was approximately RMB 69.4 million, a significant decrease from approximately RMB 280.9 million for the same period last year, primarily due to a reduction in profits[38] - The net profit attributable to the shareholders of the parent company for the year ended December 31, 2024, was approximately RMB 1,249.9 million, a decrease of 55.01% compared to approximately RMB 2,778.2 million for the same period last year, mainly due to the implementation of centralized procurement policies leading to price reductions and lower gross margins[39] - The company's cash and cash equivalents decreased from approximately RMB 1,266.37 million as of December 31, 2023, to approximately RMB 1,139.78 million as of December 31, 2024[40] Research and Development - Research and development investment for 2024 was RMB 133.097 million, accounting for 16.52% of operating revenue[12] - The company is committed to continuous innovation and has made significant progress in laboratory construction and product development[12] - The company has been granted 698 domestic intellectual property rights, including 149 invention patents, reflecting its strong innovation capability[16] - The company is committed to increasing R&D resources and hiring more R&D personnel to support ongoing projects in orthopedic robotics and personalized joint prosthetics[60] - The company aims to enhance its innovation capabilities by establishing a product R&D center at the new production base in Daxing, focusing on joint products, spinal products, and trauma products[60] - The company is closely monitoring developments in new technologies, such as biomaterials and drug-device combinations, to stay competitive in the market[58] Market Position and Strategy - The company aims to maintain its leading position in the domestic joint prosthesis market while expanding its orthopedic product line to achieve sustainable growth[19] - The company is focused on expanding its product lines and enhancing its market competitiveness through strategic research and development of new materials and technologies[29] - The company is committed to diversifying its product offerings and exploring advanced technologies to increase its market share in the orthopedic medical device sector[29] - The company plans to enhance its product range by optimizing existing products and investing more resources in new product development, particularly in the orthopedic medical device sector[58] - The company aims to strengthen its industry position in the domestic market and reduce the gap with international leaders by continuously updating and innovating its products[24] Corporate Governance - The board is committed to maintaining high standards of corporate governance, believing it is crucial for protecting shareholder interests and enhancing corporate value[69] - The company emphasizes the importance of transparency and accountability in its governance practices[69] - The board believes that adherence to the corporate governance code has been maintained throughout the reporting period[69] - The company has adopted the "Standard Code" for securities trading by directors and supervisors, confirming compliance for the year ending December 31, 2024[70] - The board consists of four committees: audit, nomination, remuneration, and strategy[161] - The company has established an internal control system that effectively covers all financial and operational management activities, ensuring the safety and integrity of its assets[141] Environmental Sustainability - The company is committed to environmental sustainability, complying with all relevant laws and regulations as of December 31, 2024[130] - The company generated 7.437 tons of titanium production waste, with a waste generation rate of 0.068 kg per RMB 10,000 in output[196] - The company reported a total of 10.773 tons of hazardous waste generated in 2024[196] - Carbon dioxide emissions from direct energy sources amounted to 18.10 tons, while indirect emissions were 3,005.6 tons[196] - The company aims to reduce carbon dioxide emissions from 0.0243 tons per RMB 10,000 in 2020 to 0.0157 tons by 2030, representing a 35% reduction[196] - The company processed 9,846.9 tons of wastewater in 2024, with water usage of 15,915.9 tons, resulting in a water usage rate of 0.146 tons per RMB 10,000 in output[199] - The company plans to decrease water usage from 0.180 tons per RMB 10,000 in 2020 to 0.13 tons by 2030, achieving a 27.8% reduction[199] - The company has established an environmental protection management system to mitigate the impact of its operations on the environment[194] Employee and Shareholder Relations - The total number of employees as of December 31, 2024, is approximately 1,237, with total salary and related costs amounting to RMB 246.88 million[63] - The company has established a retirement benefit plan for eligible employees, with contributions based on a percentage of their salaries[121] - The company encourages shareholders to attend meetings and express their opinions directly to the board[180] - The company has established multiple formal communication channels with shareholders to address inquiries and feedback[180] Risk Management - The board is responsible for risk management and internal control systems, ensuring they are effective in managing business risks[186] - The audit committee assists the board in overseeing the design and implementation of risk management and internal control systems[187] - The company has adopted various risk management procedures to define execution authority across major business processes[187] - Internal control assessments are conducted regularly to identify potential risks affecting the company's operations and financial processes[188] Shareholder Dividends - The company plans to distribute a cash dividend of 0.49 yuan per 10 shares for the 2024 fiscal year, aiming to enhance investor confidence[18] - The company plans to distribute a final dividend of RMB 0.49 per 10 shares for the year ending December 31, 2024, compared to RMB 3.62 per 10 shares for the previous year[64] - The total cash dividend for the year is projected to be RMB 50.52 million, representing 40.42% of the net profit attributable to ordinary shareholders[64] Production and Operations - The company is accelerating the construction of new production bases, including the Daxing Biopharmaceutical Industrial Base and the Weixian production base, with facilities gradually coming into use[24] - The company has three production bases, with the Tongzhou base completed in 2015 and the Daxing and Weixian bases currently under construction[128] - The company has implemented geothermal heat pump air conditioning systems at its production bases, significantly enhancing energy efficiency and environmental benefits[200] - Solar power generation equipment has been extensively installed at the new production base in Daxing, indicating a strong future focus on energy savings[200]

Group 1 - The core viewpoint of the articles highlights that Chunli Medical's stock closed at 13.6 yuan, with a PE ratio of 41.74 times, and a total market value of 5.217 billion yuan [1] - The average PE ratio for the medical device industry is 47.69 times, with a median of 29.88 times, placing Chunli Medical at the 83rd position in the industry ranking [1][2] - As of the 2024 annual report, only one institution holds shares in Chunli Medical, with a total of 17,200 shares valued at 0.00 billion yuan [1] Group 2 - Chunli Medical specializes in the research, production, and sales of implantable orthopedic medical devices, including spinal, trauma, joint, sports medicine, bone repair materials, surgical instruments, and PRP preparation kits [1] - The latest financial results for 2024 show that the company achieved an operating income of 806 million yuan, a year-on-year decrease of 33.32%, and a net profit of 125 million yuan, down 55.01%, with a gross profit margin of 66.63% [1]

Investment Rating - The report maintains a "Positive" investment rating for the healthcare equipment industry [10]. Core Insights - The first round of national procurement for artificial joints has ended, leading to a moderate drop in prices and a stabilization in the initial replacement market. The average price for selected hip joint products decreased from 35,000 yuan to 7,000 yuan, and knee joint products from 32,000 yuan to 5,000 yuan, reflecting an average price drop of 82% [7][53]. - The lifespan of artificial joints is estimated to be 15-20 years, creating a rigid clinical demand for revision surgeries due to aseptic loosening, which is the most common cause for revisions [8][25]. - The peak period for revision surgeries in China is expected to begin in 2027, driven by increased penetration of initial replacement surgeries and the release of revision demand, indicating a rapid growth phase for the domestic joint replacement market [4][47]. Summary by Sections Market Overview - The domestic joint replacement market is experiencing rapid growth, with the number of orthopedic hospitals increasing from 603 in 2016 to 662 in 2021, and the number of practicing orthopedic doctors rising from 10,316 to 15,535 during the same period, reflecting a compound annual growth rate of 8.53% [9][45]. - In 2019, approximately 952,000 joint replacement surgeries were performed in China, with a penetration rate of about 0.44%, compared to 2.15% in the United States [9][46]. Revision Demand - The report estimates that by 2025, the number of joint replacement surgeries will reach approximately 1.1 million, with a market size of 9.3 billion yuan, and by 2031, it will grow to about 3.3 million surgeries and a market size of 27.5 billion yuan, with revision surgeries accounting for 34% of the revenue [47]. Technological Advancements - The application of 3D printing technology in joint replacement is expected to enhance surgical precision and allow for personalized prosthetics, improving clinical outcomes [41][44]. Competitive Landscape - The report highlights that domestic leading manufacturers have significantly increased their market share post-procurement, with companies like Aikang Medical increasing their market share from 9.2% in 2019 to 15.0% in 2024 [7][53].

Summary of Key Points Core Viewpoint - Spring Medical (688236) has shown a positive stock performance with a closing price of 13.59 yuan as of March 28, 2025, reflecting a 2.26% increase from the previous week [1]. Company Announcements - Spring Medical has entered into three structured deposit agreements totaling 860 million yuan with China Construction Bank and Beijing Bank, utilizing idle funds from A-share public offerings [1]. - The structured deposits have varying investment terms and expected annualized returns, with the Construction Bank product offering a return of 1.00% to 2.70% and the Beijing Bank products offering returns of 1.40% or 2.20% [1]. - The company confirmed that these agreements are fair and in the best interest of the company and its shareholders [1]. H-Share Market Update - As of March 31, 2025, the total registered capital of Spring Medical is 383,568,500 yuan, with 95,140,500 H-shares and 288,428,000 A-shares [2]. - The company has not experienced any changes in share capital during the month and has complied with all applicable regulations regarding share issuance and transfers [2]. Share Buyback Progress - The company has initiated a share buyback program with a total budget of 20 million to 40 million yuan, with a maximum buyback price of 28.56 yuan per share [2]. - As of March 31, 2025, the company has repurchased 868,145 shares, representing 0.226% of the total share capital, at an average price between 12.09 yuan and 15.96 yuan, totaling approximately 12 million yuan [2][4].

北京市春立正达医疗器械股份有限公司 2024 年度独立董事述职报告 （黄德盛） 作为公司的独立董事，本人未在公司担任除独立董事外的其他职务，直系亲属、主 要社会关系均不在公司或其附属企业任职，与公司以及公司主要股东、董事、监事、高 级管理人之间不存在妨碍进行独立、客观判断的关系，未在公司关联（连）企业任职， 符合中国证监会《上市公司独立董事规则》等相关法律法规文件中关于独立性的要求， 在履职过程中坚持客观、独立的专业判断，维护全体股东特别是中小投资者的利益。 二、独立董事年度履职情况 （一）会议出席情况 本人黄德盛作为北京市春立正达医疗器械股份有限公司（以下简称"公司"）独 立董事，2024 年度，本人严格按照《中华人民共和国公司法》（以下简称《公司法》）、 《中华人民共和国证券法》（以下简称《证券法》）、《上市公司独立董事管理办法》、《上 海证券交易所科创板股票上市规则》、《香港联合交易所有限公司证券上市规则》等法 律、法规、规范性文件及《公司章程》、《独立董事工作制度》的要求，本着对全体股东 负责的态度，忠实、勤勉地履行独立董事职责，审慎行使公司及股东赋予的权利，积极 发挥独立董事的监督作用，促进公司规范 ...

北京市春立正达医疗器械股份有限公司 报告期内，公司于 2024 年 5 月 27 日召开第五届董事会第十三次会议，审议通 过了《关于选举独立董事的议案》，根据董事会提名委员会的建议，提名徐泓女士 （本人）为第五届董事会独立董事候选人，其中徐泓女士为具备会计专业资质的独立 2024 年度独立董事述职报告 （徐泓） 本人徐泓作为北京市春立正达医疗器械股份有限公司（以下简称"公司"）独立 董事，2024 年任职期间，本人严格按照《中华人民共和国公司法》（以下简称《公司 法》）、《中华人民共和国证券法》（以下简称《证券法》）、《上市公司独立董事管 理办法》、《上海证券交易所科创板股票上市规则》、《香港联合交易所有限公司证券 上市规则》等法律、法规、规范性文件及《公司章程》、《独立董事工作制度》的要求， 本着对全体股东负责的态度，忠实、勤勉地履行独立董事职责，审慎行使公司及股东赋 予的权利，积极发挥独立董事的监督作用，促进公司规范运作，切实维护公司利益和全 体股东尤其是中小股东的合法权益。现将本人在 2024 年度任职期间履行独立董事职责 的情况报告如下： 一、独立董事的基本情况 （一）独立董事人员情况 截至 2024 ...

北京市春立正达医疗器械股份有限公司 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 北京市春立正达医疗器械股份有限公司 (以下简称"公司"或"春立医 疗")2024年度社会责任报告（以下简称"本报告"）依据香港联合交易所《香 港联合交易所有限公司证券上市规则》附录27《环境、社会及管治报告指引》、 上海证券交易所发布的《关于加强上市公司社会责任承担工作暨发布〈上海证券 交易所上市公司环境信息披露指引〉的通知》、《〈公司履行社会责任的报告〉 编制指引》的有关规定，结合公司2024年度在履行社会责任方面的具体情况编制 而成。反映了公司2024年在生产经营过程中对公司股东、职工和社会等利益相关 者承担社会责任的总体情况。 一、公司概况 春立医疗成立于1998年2月，经营范围：生产医疗器械Ⅲ类：Ⅲ-6846-1植入 器材、Ⅲ-6846-2植入性人工器官（人工关节假体、定制关节假体、脊柱内固定 器）；销售医疗器械Ⅲ类：植入材料和人工器官、医用缝合材料及粘合剂；Ⅱ 类：物理治疗及康复设备、矫形外科（骨科）手术器械；Ⅰ类：基础外科手术器 ...

Financial Performance - The company's total revenue for the year ended December 31, 2024, was RMB 805,857,022.19, a decrease of 33.3% compared to RMB 1,208,523,845.88 in 2023[7] - Operating profit for the year was RMB 130,714,693.96, down 57.3% from RMB 305,975,463.53 in the previous year[7] - The company's net profit margin for the year was approximately 16.2%, down from 25.3% in 2023[7] - The total profit for the year ended December 31, 2024, was RMB 131,599,169.07, a decrease of 57.0% compared to RMB 305,905,863.04 in 2023[8] - The net profit attributable to shareholders for 2024 was RMB 124,988,009.59, down 55.0% from RMB 277,824,014.12 in 2023[8] - Basic and diluted earnings per share for 2024 were both RMB 0.33, a decline of 54.2% from RMB 0.72 in 2023[8] - The company's total comprehensive income for 2024 was RMB 124,661,283.50, a decrease of 55.0% from RMB 277,818,116.48 in 2023[8] - The revenue from medical devices for the year ended December 31, 2024, was RMB 805.22 million, a decline of 33.31% compared to RMB 1,207.48 million in 2023[44] Assets and Liabilities - The company's cash and cash equivalents decreased to RMB 1,139,778,517.24 from RMB 1,266,367,522.67, representing a decline of 10%[4] - Accounts receivable dropped significantly to RMB 218,658,632.35 from RMB 405,895,527.39, a reduction of 46.1%[4] - Total liabilities decreased to RMB 644,390,846.18 from RMB 770,325,491.93, a decline of 16.4%[5] - The total assets of the company as of December 31, 2024, were RMB 3,465,734,982.98, down from RMB 3,649,560,924.88 in 2023[6] - The company reported a decrease in retained earnings to RMB 1,208,437,565.70 from RMB 1,267,513,008.25, a decline of 4.6%[6] - The net value of current assets decreased from approximately RMB 2,328.69 million to approximately RMB 2,293.74 million[58] Research and Development - Research and development expenses were RMB 133,096,848.59, a decrease of 15.4% from RMB 157,445,504.26 in the previous year[7] - The company has achieved significant advancements in R&D, focusing on new materials such as porous tantalum and magnesium alloys, and has developed a range of new products including knee and hip joint prosthetics, which have increased its market share in the artificial joint sector[30] - The company is committed to developing a comprehensive one-stop oral ecological solution, with plans for orthodontics, implants, restorations, and maxillofacial surgery[32] - The company emphasizes the integration of production, learning, research, and clinical collaboration in its R&D efforts to ensure products meet market demands and clinical practicality[35] - The company aims to enhance its innovation capabilities and increase R&D resources, focusing on advanced customized orthopedic products and robotic systems[72] Market and Product Development - The company operates primarily in the orthopedic medical device sector, which is experiencing growth due to increasing healthcare demands and an aging population[26] - The company actively participated in the national centralized procurement policy, successfully winning bids for three hip joint product systems and a total knee joint system in May 2024[28] - The company has expanded its product offerings in sports medicine, obtaining multiple registration certificates for products such as 3D printed titanium alloy anchors and non-absorbable anchors, enhancing its clinical application capabilities[31] - The company is strategically diversifying its product lines and enhancing its market share in the orthopedic high-value consumables sector through comprehensive strategic planning[29] - The company plans to enhance its product range by optimizing existing products and investing more resources in new product development, particularly in the orthopedic medical device sector[69] Corporate Governance and Management - The board is committed to maintaining high standards of corporate governance, which is essential for protecting shareholder interests and enhancing corporate value[82] - The company has adopted the standard code of conduct for securities trading by directors and supervisors, confirming compliance for the year ending December 31, 2024[83] - The audit committee has reviewed the consolidated financial statements for the year ending December 31, 2024, prepared by Da Xin Accounting Firm[84] - The company will maintain its existing talent development policies and establish a competitive compensation system to attract high-quality talent[74] Shareholder Information - The company plans to distribute a final dividend of RMB 0.49 per 10 shares, which represents 15.00% of the net profit attributable to ordinary shareholders[77] - The total cash dividend for the year is RMB 50.52 million, accounting for 40.42% of the net profit attributable to ordinary shareholders[77] - The company will hold its annual general meeting on June 26, 2025, for shareholders to vote on relevant matters[79] - The company will suspend H-share transfer registration from July 3 to July 7, 2025, to determine eligibility for the final dividend[81]

Financial Performance - The company's operating revenue for the third quarter was CNY 128,153,090.70, a decrease of 49.03% compared to the same period last year[4] - The net profit attributable to shareholders was a loss of CNY 17,874,633.27, representing a decrease of 66.14% year-on-year[4] - The net profit after deducting non-recurring gains and losses was a loss of CNY 21,955,970.95, a decrease of 72.82% year-on-year[4] - Year-to-date operating revenue decreased by 35.84%, primarily due to a decline in product prices[9] - Net profit attributable to shareholders decreased by 66.14% year-to-date, impacted by ongoing investments in R&D[9] - Net profit excluding non-recurring gains and losses decreased by 72.82% year-to-date, reflecting a significant drop in operating income[9] - The net profit for Q3 2024 was CNY 61,008,648.47, a decrease of 66.16% compared to CNY 180,480,568.79 in Q3 2023[24] - The total profit for Q3 2024 was CNY 66,164,634.16, down 66.19% from CNY 195,883,102.35 in the same period last year[24] - The operating profit for Q3 2024 was CNY 65,450,654.17, a decline of 66.66% from CNY 195,933,021.66 in Q3 2023[24] Research and Development - The R&D investment totaled CNY 32,016,993.64, accounting for 24.98% of operating revenue, an increase of 9.00 percentage points compared to the previous year[5] - Research and development expenses for the first three quarters of 2024 amounted to CNY 99,676,406.70, compared to CNY 114,743,907.65 in 2023, reflecting a decrease of approximately 13.1%[23] Assets and Liabilities - Total assets at the end of the reporting period were CNY 3,494,818,114.71, a decrease of 4.24% from the end of the previous year[5] - The company's total assets as of the end of the third quarter of 2024 were CNY 3,494,818,114.71, down from CNY 3,649,560,924.88 at the end of the same period in 2023, a decline of about 4.2%[22] - Total liabilities as of the end of the third quarter of 2024 were CNY 698,382,450.68, compared to CNY 770,325,491.93 in 2023, representing a decrease of approximately 9.3%[20] - The company's total equity as of the end of the third quarter of 2024 was CNY 2,796,435,664.03, down from CNY 2,879,235,432.95 in 2023, indicating a decline of about 2.9%[22] Cash Flow - The net cash flow from operating activities was reported as not applicable for the current period, with a cumulative cash flow of -CNY 17,279,413.75 year-to-date[4] - The cash flow from operating activities for the first three quarters of 2024 was CNY 739,551,633.47, down 19.0% from CNY 913,078,524.92 in the same period of 2023[26] - The net cash flow from investing activities for Q3 2024 was CNY 50,828,134.57, compared to a negative CNY 81,534,431.39 in Q3 2023[27] - The cash and cash equivalents at the end of Q3 2024 were CNY 1,155,205,573.66, an increase from CNY 769,302,304.79 at the end of Q3 2023[27] - The company experienced a cash outflow from operating activities totaling CNY 756,831,047.22 in Q3 2024, compared to CNY 899,329,366.94 in Q3 2023[27] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 7,998[10] - The top shareholder, Shi Chunbao, holds 29.92% of the shares, totaling 114,766,497 shares[10] - The company has not reported any significant changes in shareholder participation in margin trading or stock lending activities[18] Earnings Per Share - The company’s diluted earnings per share for the quarter was -CNY 0.05, down 65.96% from CNY 0.16 in the same period last year[5] - Basic earnings per share decreased by 65.96% year-to-date, correlating with the decline in net profit[9] - Diluted earnings per share also decreased by 65.96% year-to-date, consistent with the overall profit decline[9] - Basic earnings per share for Q3 2024 were CNY 0.16, down from CNY 0.47 in Q3 2023[25] Government Subsidies and Other Income - The company received government subsidies amounting to CNY 4,645,666.67 year-to-date, which are closely related to its normal business operations[6] - The company reported a total of CNY 39,213.61 from the disposal of non-current assets, indicating some asset impairment reversals[6] - The company reported a foreign exchange gain of CNY 1,677.48 in Q3 2024, compared to a gain of CNY 673,557.68 in Q3 2023[27] Operating Costs - Total operating costs for the first three quarters of 2024 were CNY 449,469,327.29, down from CNY 607,002,161.57 in 2023, indicating a reduction of about 26%[23] - The company reported a net profit margin decline due to increased sales and management expenses, with sales expenses at CNY 163,464,944.14 compared to CNY 233,751,182.69 in 2023, a decrease of approximately 30%[23]

Product Development and Innovation - The company focuses on orthopedic medical devices and tissue repair products, including spinal, trauma, joint, and sports medicine implants, as well as surgical instruments and PRP preparation kits[7]. - The company is investing in R&D for new materials such as porous tantalum and PEEK, and enhancing product lines in surgical robotics, sports medicine, PRP, and oral health[8]. - The company is continuously innovating and expanding its diversified product lines to adapt to the evolving orthopedic market[7]. - The company is focused on maintaining a competitive edge in the orthopedic high-value consumables sector through strategic R&D investments[8]. - The company aims to enhance its product reserve by seeking advanced technologies and excellent products in related fields, ensuring sustainable development in the medical sector[8]. - The company has launched new products in the artificial joint field, including femoral head reconstruction rods and porous tantalum metal implants, which will further increase its market share in the artificial joint sector[9]. - The company has developed a comprehensive oral product line, including dental implants and orthodontic products, aiming to provide a one-stop solution for various dental needs[9]. - The company has successfully developed a handheld orthopedic robot system, which improves surgical precision and promotes minimally invasive, intelligent, and digital orthopedic surgeries[10]. - The company has launched an all-automatic PRP preparation system, marking a significant advancement in its PRP product matrix, which is the first of its kind in China[9]. - The company is focusing on customized, minimally invasive, and intelligent orthopedic medical devices to meet the growing demand in the market[40]. - The company has a full range of customized joint technologies, including 3D-printed joint osteotomy guides, aimed at improving surgical accuracy and patient satisfaction[40]. Market Expansion and Competitive Position - In May 2024, the company won bids for three hip joint products and the entire knee joint system in the centralized procurement in Tianjin[7]. - All eight product categories submitted by the company for spinal materials were awarded in the national centralized procurement organized in 2023[7]. - The company is actively expanding its marketing network to increase market share in the sports medicine field, with a total demand share increase expected from the upcoming procurement in November 2023[7]. - The orthopedic implant market is expected to grow due to factors such as aging population, increasing healthcare spending, and improved public medical infrastructure in China[7]. - The company aims to enhance its comprehensive competitiveness by continuously meeting diverse market and clinical demands through its extensive product registrations and innovations[10]. - The company is committed to expanding its international market presence while maintaining its leading position in the domestic market[40]. Financial Performance - The company's operating revenue for the six months ended June 30, 2024, was approximately RMB 380.13 million, a decrease of 29.70% compared to RMB 540.71 million in the same period last year[15]. - The gross profit for the same period was approximately RMB 271.88 million, down 30.54% from RMB 391.41 million year-on-year[17]. - The net profit attributable to shareholders for the six months ended June 30, 2024, was RMB 79.03 million, a decline of 37.32% from RMB 126.08 million in the previous year[25]. - Research and development expenses for the first half of 2024 were approximately RMB 67.66 million, representing 17.80% of revenue, compared to 13.79% in the same period last year[20]. - Sales expenses for the six months ended June 30, 2024, were approximately RMB 111.48 million, a decrease of 33.20% from RMB 166.89 million in the previous year[18]. - The company reported a decrease in credit impairment losses to approximately RMB 5.79 million, down 34.13% from RMB 8.79 million year-on-year, due to a reduction in accounts receivable[21]. - The company achieved a net profit attributable to shareholders of RMB 79,026,078.82 for the first half of 2024[46]. - The total comprehensive income attributable to the parent company is RMB 79.03 million, a decrease of 37.3% from RMB 126.08 million in the previous period[71]. Assets and Liabilities - As of June 30, 2024, the company held a total of 606 domestic intellectual property rights, including 124 invention patents and 468 utility model patents[12]. - The company has no significant contingent liabilities or guarantees as of June 30, 2024[34]. - Accounts receivable increased from approximately RMB 358.3 million as of December 31, 2023, to approximately RMB 757.4 million as of June 30, 2024, due to changes in collection methods[29]. - Inventory rose from approximately RMB 4.3449 billion as of December 31, 2023, to approximately RMB 5.204 billion as of June 30, 2024, driven by product stockpiling based on market demand[30]. - Current assets decreased from approximately RMB 23.2869 billion as of December 31, 2023, to approximately RMB 22.7349 billion as of June 30, 2024, primarily due to the provision for dividends[32]. - The total assets at the end of the period amount to RMB 3,621,698,636.05, down from RMB 3,645,326,641.07 at the beginning of the period, reflecting a decrease of 0.65%[66]. - The total liabilities increased to RMB 829,644,175.77 from RMB 792,843,181.35, representing an increase of 4.6%[66]. - The company's total equity decreased to RMB 2,792,054,460.28 from RMB 2,852,483,459.72, reflecting a decrease of 2.1%[66]. Corporate Governance and Compliance - The company has maintained compliance with the corporate governance code as per the Hong Kong Listing Rules during the reporting period[47]. - All directors and supervisors confirmed compliance with the standard code of conduct for securities trading during the six months ending June 30, 2024[48]. - The audit committee has reviewed the consolidated financial statements for the six months ending June 30, 2024[49]. - The financial report was approved by the board of directors on August 30, 2024, indicating timely governance and oversight[89]. Employee and Talent Management - The company has established an effective incentive mechanism to motivate employees and attract high-quality talent through a competitive compensation system[43]. - As of June 30, 2024, the company employed approximately 1,291 staff, with total employee compensation and related costs amounting to RMB 151.56 million[44]. Accounting Policies and Financial Reporting - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the financial statements reflect a true and complete picture of its financial status as of June 30, 2024[92]. - The company’s accounting policies and estimates are based on the actual transactions and events, ensuring compliance with relevant accounting standards[90]. - The company follows a control-based approach for determining the scope of consolidated financial statements, requiring power over the investee, variable returns, and the ability to influence returns[97]. - Consolidated financial statements are prepared using uniform accounting policies and periods for parent and subsidiaries, with necessary adjustments made for inconsistencies[98]. - The company recognizes revenue when it fulfills its performance obligations, which occurs when the customer obtains control of the related goods or services[146].