Financial Performance - The company's operating revenue for the six months ended June 30, 2024, was RMB 380.13 million, a decrease of 29.7% compared to RMB 540.71 million for the same period in 2023[9]. - Operating profit for the same period was RMB 82.29 million, down 40.6% from RMB 138.46 million year-over-year[9]. - Net profit attributable to shareholders for the six months ended June 30, 2024, was RMB 79.03 million, a decline of 37.3% from RMB 126.08 million in the previous year[12]. - Basic earnings per share decreased to RMB 0.21 from RMB 0.33, reflecting a 36.4% drop[13]. - The total profit for the six months was RMB 83.07 million, down 40.1% from RMB 138.54 million in the same period last year[9]. - The company's net profit attributable to the parent company for the six months ended June 30, 2024, was RMB 79,026,078.82, compared to RMB 277,824,014.12 in the same period of 2023[22]. - Gross profit for the same period was approximately RMB 271.88 million, down 30.54% from RMB 391.41 million year-on-year[48]. - The company's cash flow from operating activities showed a net outflow of approximately RMB 69.06 million, primarily due to reduced sales receipts compared to the previous year[62]. Assets and Liabilities - As of June 30, 2024, the total assets of Beijing Chunlizhengda Medical Instruments Co., Ltd. amounted to RMB 3,632,906,151.99, a decrease from RMB 3,649,560,924.88 as of December 31, 2023[2]. - The total current assets decreased slightly to RMB 2,993,697,416.93 from RMB 3,005,359,817.46 over the same period[2]. - The total liabilities increased to RMB 813,561,621.26 from RMB 770,325,491.93, indicating a rise of approximately 5.5%[5]. - The company's equity attributable to shareholders decreased to RMB 2,817,641,135.16 from RMB 2,877,466,853.34, reflecting a decline of about 2.1%[8]. - The company's retained earnings decreased to RMB 1,207,687,290.07 from RMB 1,267,513,008.25, a decline of approximately 4.7%[7]. - The company reported a total equity of RMB 2,819,344,530.73 as of June 30, 2024, down from RMB 2,879,235,432.95[8]. - The total current liabilities increased to RMB 720,211,490.68 from RMB 676,672,835.51, representing an increase of about 6.4%[4]. Research and Development - Research and development expenses amounted to RMB 67.66 million, a decrease of 9.5% from RMB 74.57 million in the prior year[9]. - The company is focusing on the development of new products and technologies to improve competitiveness in the orthopedic medical device market[34]. - The company will establish a product R&D center at its new production base, focusing on joint products, spinal products, and trauma products, while increasing R&D personnel to enhance innovation capabilities[69]. - The company is actively involved in R&D projects funded by government initiatives, including projects related to orthopedic surgical navigation systems and biodegradable materials[42]. - The company emphasizes collaboration with clinical experts to ensure that its R&D products meet market demands and clinical practicality[42]. Market and Product Development - The company is actively expanding its product lines in orthopedics, including new materials and technologies such as titanium alloys, magnesium alloys, and PEEK[35]. - The company has successfully launched new products in the artificial joint sector, including bone reconstruction rods and tantalum metal fillers, enhancing its market share[36]. - The company has enriched its sports medicine product line with several new registrations, marking a significant advancement in this field[37]. - The company has developed the first domestically produced orthopedic handheld robot systems, improving surgical precision and promoting minimally invasive techniques[38]. - The company has obtained CE certificates for its hip, knee, and spine product lines, and received FDA 510(K) approval for its knee prosthesis system on April 15, 2024, indicating its international market competitiveness[39]. Corporate Governance and Financial Management - The company maintains high standards of corporate governance to protect shareholder interests and enhance corporate value[76]. - The company has adopted the "Standard Code" for securities trading by directors and supervisors, confirming compliance as of June 30, 2024[77]. - The audit committee has reviewed the consolidated financial statements for the six months ending June 30, 2024[78]. - The company is committed to maintaining liquidity through effective management of its financial resources[64]. - The company plans to continue its investment strategy focusing on structured deposit products[65]. Employee and Compensation - The company employs approximately 1,291 employees as of June 30, 2024, with total employee compensation and related costs amounting to approximately RMB 151.56 million[72]. - The company's management expenses increased by 12.39% to approximately RMB 21.31 million from RMB 18.96 million, primarily due to rising employee compensation and rental costs[50]. Dividend and Shareholder Returns - A cash dividend of RMB 0.83 per 10 shares (before tax) is proposed, amounting to a total cash dividend of RMB 31,817,332.47, which represents 40.26% of the net profit attributable to shareholders[75]. - The profit distribution proposal has been approved by the board and will be submitted for approval at the 2024 extraordinary general meeting[75].

Financial Performance - For Q1 2024, the company's operating revenue was RMB 221,850,180.79, representing a decrease of 9.95% compared to the same period last year[5]. - The net profit attributable to shareholders was RMB 55,199,616.28, reflecting a decline of 1.18% year-on-year[5]. - The net profit after deducting non-recurring gains and losses was RMB 48,882,462.10, down by 1.46% compared to the previous year[6]. - Basic and diluted earnings per share were both RMB 0.14, a decrease of 6.67% year-on-year[6]. - Operating profit for Q1 2024 was $59.33 million, a decrease of 3.25% from $62.34 million in Q1 2023[19]. - Total profit for Q1 2024 was $60.16 million, down from $62.23 million in the same period last year, representing a decline of 3.41%[19]. - Net profit attributable to shareholders for Q1 2024 was $55.20 million, compared to $55.86 million in Q1 2023, reflecting a decrease of 1.18%[19]. Cash Flow - The net cash flow from operating activities was negative at RMB -129,613,339.07, indicating a significant cash outflow[6]. - Cash inflow from operating activities for Q1 2024 was $217.43 million, slightly up from $212.80 million in Q1 2023, an increase of 2.54%[20]. - Cash outflow from operating activities totaled $347.04 million in Q1 2024, compared to $333.00 million in Q1 2023, an increase of 4.22%[20]. - Net cash flow from operating activities was -$129.61 million in Q1 2024, worsening from -$120.20 million in Q1 2023[20]. - Cash inflow from investment activities was $837.23 million in Q1 2024, up from $771.18 million in Q1 2023, an increase of 8.56%[21]. - Cash outflow from investment activities was $753.50 million in Q1 2024, slightly down from $769.63 million in Q1 2023, a decrease of 2.09%[21]. - Net cash flow from investment activities was $83.73 million in Q1 2024, significantly up from $1.55 million in Q1 2023[21]. - Cash and cash equivalents at the end of Q1 2024 were $1.22 billion, compared to $838.34 million at the end of Q1 2023, an increase of 45.66%[22]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 3,542,662,190.69, down 2.93% from the end of the previous year[6]. - Total liabilities decreased to CNY 608,374,106.90 from CNY 770,325,491.93, a reduction of 21.03%[16]. - Current liabilities totaled CNY 514,691,217.05, down 23.99% from CNY 676,672,835.51 in the previous year[16]. - The company's cash and cash equivalents as of March 31, 2024, amount to ¥1,220,478,879.78, a decrease from ¥1,266,367,522.67 at the end of 2023[14]. - The company's inventory as of March 31, 2024, is ¥476,158,025.23, an increase from ¥434,485,725.70 at the end of 2023[14]. - The company's accounts receivable increased to ¥418,285,561.50 from ¥405,895,527.39 at the end of 2023[14]. - The total trading financial assets decreased to ¥741,195,087.52 from ¥832,019,095.90 at the end of 2023[14]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 6,133, with 6,116 A-share holders and 17 H-share holders[11]. - The largest shareholder, Shi Chunbao, holds 114,840,685 shares, representing 29.94% of the total shares[10]. - The second-largest shareholder, Yue Shujun, holds 95,447,900 shares, accounting for 24.88% of the total shares[10]. - The company has not reported any changes in the top 10 shareholders due to securities lending activities[12]. - The company has not disclosed any related party relationships among the top 10 shareholders[11]. Research and Development - Research and development expenses totaled RMB 34,991,868.71, accounting for 15.77% of operating revenue, an increase of 2.26 percentage points year-on-year[6]. - Research and development expenses increased to CNY 34,991,868.71, up 5.18% from CNY 33,270,315.66 in Q1 2023[18]. Government Subsidies - The company recognized government subsidies amounting to RMB 2,607,636.22 as part of non-recurring gains[7]. - The company reported a total of RMB 6,317,154.18 in non-recurring gains after tax, indicating ongoing financial impacts from certain government policies[8]. Operational Situation - There are no significant reminders regarding the company's operational situation during the reporting period[13].

Financial Performance - In 2023, the company achieved operating revenue of RMB 1,208.52 million, a year-on-year increase of 0.58%[9]. - The net profit attributable to shareholders of the listed company was RMB 277.82 million, a decrease of 9.72% year-on-year[9]. - The basic earnings per share were RMB 0.72, reflecting a decline of 10.00% year-on-year[9]. - The company's gross profit decreased by 4.12% from approximately RMB 913.53 million in 2022 to approximately RMB 875.89 million in 2023, with a gross profit margin dropping from 76.03% to 72.48%[29]. - The company's net profit decreased from approximately RMB 307.72 million in 2022 to approximately RMB 277.82 million in 2023, primarily due to the impact of national procurement policies on product pricing[32]. - The total comprehensive income for the year was RMB 277,818,116.48, down from RMB 307,719,145.65 in the previous year[192]. - The company reported an investment income of RMB 12,012,452.06, significantly up from RMB 6,748,241.12 in the previous year[191]. - The operating profit decreased to RMB 305,975,463.53, down 6.9% from RMB 328,908,764.68 in the prior year[191]. Assets and Liabilities - The total assets of the company reached RMB 3,649.56 million, an increase of 7.03% compared to the end of the previous year[9]. - The total equity attributable to shareholders of the listed company was RMB 2,877.47 million, an increase of 5.80% year-on-year[9]. - The company's cash and cash equivalents increased by 32.30% from approximately RMB 957.19 million in 2022 to approximately RMB 1,266.37 million in 2023, mainly due to increased customer payments[33]. - Total liabilities increased to RMB 770,325,491.93 from RMB 690,066,911.19, reflecting a growth of approximately 11.6%[186]. - The company's retained earnings increased to RMB 1,267,513,008.25 from RMB 1,136,732,358.10, marking a growth of about 11.5%[187]. Research and Development - In 2023, the company's R&D investment reached CNY 157,445,504.26, accounting for 13.03% of its operating revenue[11]. - The company is actively involved in national key R&D projects, including the development of porous tantalum bone repair materials and clinical applications[13]. - The company is expanding its research and development capabilities by establishing a product R&D center at its new production base in Daxing, focusing on joint products, spinal products, and trauma products[48]. - The company is committed to continuous product innovation and aims to narrow the gap with international leaders in the orthopedic sector, aspiring to become a world-class orthopedic innovation enterprise[23]. Market Strategy and Expansion - The company aims to maintain its leading position in the domestic joint prosthesis market and increase its market share while expanding its orthopedic product line[18]. - The company accelerated the development of new products and expanded its domestic and international market share[8]. - The company adopted a multi-channel marketing strategy, including offline distribution and direct sales, to promote its products domestically[10]. - The company plans to enhance its market share by seeking advanced technologies and excellent products in related orthopedic fields[26]. - A strategic plan to enter the Southeast Asian market is underway, with an initial investment of $5 million allocated for market research and local partnerships[60]. Corporate Governance - The company emphasizes the importance of governance structure and internal control effectiveness, having revised the Independent Director Work System in 2023 to align with regulatory requirements[20]. - The company aims to improve investor relations by enhancing information disclosure quality and maintaining transparent communication through various channels, thereby establishing a positive corporate image in the capital market[21]. - The board of directors consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors, complying with listing rules[107]. - The company has adopted a standard code for securities trading by directors and supervisors, confirming compliance for the year ended December 31, 2023[58]. Environmental and Social Responsibility - The company has implemented a comprehensive environmental management system to minimize its impact on natural resources and comply with relevant environmental laws[149]. - The company aims to reduce electricity consumption from 60.9 kWh per RMB 10,000 in 2020 to 43 kWh by 2030, achieving a 29.4% decrease[154]. - The company has established a whistleblowing procedure for employees to report concerns regarding criminal offenses or financial misconduct[145]. - The company has been actively involved in community investment, donating over CNY 100,000 in flood relief materials in 2023[168]. Employee Management - The company has approximately 1,231 employees as of December 31, 2023, with total salary and related costs amounting to RMB 233.87 million for the year[51]. - The company continues to implement a talent development policy and has established an effective incentive mechanism to motivate employees[50]. - The turnover rate for employees under 30 years old was 36.48%, significantly higher than other age groups[155]. - The training completion rate for new employees was 100%, with an average training duration of 137 hours[158]. Future Outlook - The company projects a revenue growth of 25% for the next fiscal year, driven by new product launches and market expansion strategies[60]. - The company plans to enhance its capital operation channels and improve its risk resistance through active communication in the capital market[16]. - The company aims to enhance its research and development capabilities for new technologies[199]. - The company is exploring potential mergers and acquisitions to strengthen its market position[199].

Financial Performance - The company's total revenue for the year ended December 31, 2023, was RMB 1,208,523,845.88, a slight increase from RMB 1,201,604,254.24 in 2022, representing a growth of approximately 0.2%[6]. - Operating profit for 2023 was RMB 305,975,463.53, down from RMB 328,908,764.68 in 2022, indicating a decrease of about 7%[6]. - Net profit for the year was RMB 277,818,116.48, compared to RMB 307,719,145.65 in the previous year, reflecting a decline of approximately 9.7%[7]. - The company's gross profit decreased by 4.12% from approximately RMB 913.53 million in 2022 to approximately RMB 875.89 million in 2023, with a gross profit margin dropping from 76.03% to 72.48%[51]. - The basic earnings per share for 2023 was RMB 0.72, down from RMB 0.80 in 2022, indicating a decrease of 10%[8]. - The company's net profit decreased from approximately RMB 307.72 million for the year ended 2022 to approximately RMB 277.82 million for the year ended 2023, primarily due to the impact of national high-value consumables procurement policies and a decline in product prices[58]. Assets and Liabilities - The total assets of Beijing Chunlizhengda Medical Instruments Co., Ltd. as of December 31, 2023, amounted to RMB 3,649,560,924.88, an increase from RMB 3,409,766,690.91 in 2022, representing a growth of approximately 7%[2]. - The company's current assets reached RMB 3,005,359,817.46, up from RMB 2,779,088,982.86 in the previous year, indicating an increase of about 8.1%[2]. - The total liabilities as of December 31, 2023, were RMB 770,325,491.93, compared to RMB 690,066,911.19 in 2022, reflecting a rise of approximately 11.6%[4]. - The equity attributable to shareholders increased to RMB 2,877,466,853.34 from RMB 2,719,699,779.72, marking a growth of around 5.8%[5]. - The company's cash and cash equivalents rose to RMB 1,266,367,522.67, compared to RMB 957,193,661.02 in the previous year, representing an increase of approximately 32.3%[2]. - The total accounts payable as of December 31, 2023, was RMB 225,500,169.91, a decrease from RMB 237,786,563.39 in 2022, representing a decline of about 5.2%[20]. Research and Development - The company has invested in new product development and technology, although specific figures were not disclosed in the conference call[1]. - Research and development expenses amounted to RMB 157,445,504.26 in 2023, slightly lower than RMB 162,340,798.73 in 2022, showing a decrease of about 3.5%[6]. - The company is focusing on R&D of new materials such as titanium, magnesium alloy, and PEEK, as well as new product lines in robotics and sports medicine[35]. - The R&D team consists of professionals with over 10 years of experience, including PhD researchers, ensuring strong innovation capabilities[42]. - The company has undertaken multiple key R&D projects, including the development of high-quality medical metal powder materials and biodegradable medical magnesium alloy materials[43][44]. Market and Product Development - The orthopedic implant market has seen significant growth due to factors such as an aging population and increased healthcare spending in China[34]. - The company aims to enhance its market share in the orthopedic sector while expanding into related fields such as spine and trauma products[36]. - The company has successfully registered multiple new products in the orthopedic field, including 3D printed hip prostheses and high-performance polyethylene hip and knee products, filling market gaps and increasing market share[37]. - The company has entered the dental field with multiple product registrations, including orthodontic and maxillofacial products, marking its official entry into this market[38]. - The company has developed and launched a fully automated platelet-rich plasma preparation system, becoming the first in China to do so, indicating its progress in the field of source equipment[39]. Corporate Governance and Compliance - The company has adhered to all applicable principles and code provisions of corporate governance as of December 31, 2023[85]. - The company has adopted the standard code for securities trading by directors and has confirmed compliance for the year ending December 31, 2023[86]. - The audit committee has reviewed the consolidated financial statements for the year ending December 31, 2023[87]. Future Outlook - Future outlook includes plans for market expansion and potential mergers and acquisitions to enhance growth opportunities[1]. - The company aims to transition from a domestic leader in artificial joints to a comprehensive orthopedic enterprise covering multiple specialized fields, including joints, spine, trauma, and sports medicine[40]. - The company plans to enhance its product offerings by investing more resources in R&D for new products, focusing on joint prosthetics and expanding into new markets[74].

Financial Performance - Operating revenue for the third quarter reached RMB 251,448,670.74, representing a year-on-year increase of 33.34%[5] - Net profit attributable to shareholders was RMB 54,545,916.88, reflecting a year-on-year increase of 3.45%[5] - Net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 51,431,151.23, showing a significant increase of 106.11% compared to the same period last year[6] - The company's net profit for the first three quarters of 2023 was not explicitly stated but can be inferred from the operating income and costs[20] - In Q3 2023, the company's net profit was CNY 180,480,568.79, a decrease of 13.9% compared to CNY 209,707,532.63 in Q3 2022[21] - The operating profit for Q3 2023 was CNY 195,933,021.66, down from CNY 231,324,682.35 in the same period last year, reflecting a decline of 15.2%[21] - The total comprehensive income for Q3 2023 was CNY 180,480,568.79, compared to CNY 209,707,532.63 in Q3 2022, indicating a decline of 13.9%[21] Cash Flow - Cash flow from operating activities amounted to RMB 52,721,051.78, a substantial increase of 924.95%[6] - The net cash flow from operating activities rose significantly by 924.95%, primarily due to increased sales revenue and the maturity of certain receivables during the reporting period[9] - The cash flow from operating activities in Q3 2023 was CNY 13,749,157.98, a significant improvement from a negative cash flow of CNY -76,368,941.72 in Q3 2022[23] - The company reported a cash flow from investment activities of CNY -81,534,431.39 in Q3 2023, compared to CNY -534,949,975.29 in Q3 2022, indicating a reduced outflow[24] Assets and Liabilities - Total assets at the end of the reporting period were RMB 3,359,888,860.41, a decrease of 1.46% from the end of the previous year[6] - Total current assets decreased to ¥2,697,390,423.94 from ¥2,779,088,982.86, a reduction of 2.9%[15] - Total liabilities decreased to ¥577,990,975.15 from ¥690,066,911.19, a decline of 16.2%[18] - The company's total assets as of September 30, 2023, were ¥3,359,888,860.41, down from ¥3,409,766,690.91, a decrease of 1.5%[19] Shareholder Information - As of the end of the reporting period, the total number of A-share shareholders was 4,944, while the number of H-share registered shareholders was 17[12] - The top shareholder, Shi Chunbao, holds 114,840,685 shares, representing 29.94% of the total shares[10] - The company has a total of 4,961 ordinary shareholders at the end of the reporting period[10] Research and Development - Research and development expenses totaled RMB 40,171,522.95, which is 15.98% of operating revenue, a decrease of 1.37 percentage points year-on-year[6] - Research and development expenses amounted to ¥114,743,907.65, compared to ¥105,014,400.73 in the previous year, indicating an increase of 9.3%[20] Market Position and Strategy - The company's operating revenue for the third quarter increased by 33.34% due to favorable national procurement policies[9] - The net profit attributable to shareholders, excluding non-recurring gains and losses, surged by 106.11% driven by increased sales volume and improved penetration rates[9] - The company is positioned to enhance its market share in the orthopedic sector by actively responding to national procurement policies and expanding its marketing network[13] - The company aims to achieve long-term stable development in the orthopedic industry by tracking market dynamics and increasing its market presence[13] - The company is committed to leveraging its advantages as a leading orthopedic enterprise to respond to national policy initiatives[13] Financial Statements - The financial statements for the third quarter are unaudited[14]

Regulatory and Market Position - The company holds 102 medical device registrations in China, including 34 Class III, 21 Class II, and 47 Class I registrations, enhancing its market competitiveness [7]. - In the first half of 2023, the company achieved significant progress in obtaining domestic and international registrations, marking the beginning of an accelerated certification phase [8]. - The orthopedic medical device market in China is experiencing growth due to factors such as an aging population and increased healthcare spending [6]. - The orthopedic implant industry is relatively concentrated, with high entry barriers due to strict regulatory measures and high-quality product requirements [6]. - The company actively responds to national procurement policies to ensure stable supply and compliance in the orthopedic joint sector [6]. - The orthopedic implant market is dominated by multinational companies, but domestic firms are expected to increase market share through improved product offerings [6]. Product Development and Innovation - The company aims to expand its product portfolio to meet diverse market and clinical needs, thereby enhancing its overall competitiveness [7]. - The company has established itself as a leader in the domestic orthopedic industry, focusing on the research and development of artificial joint prosthetics, with over 20 years of experience [9]. - As of June 30, 2023, the company has received government funding for multiple R&D projects, including the development of high-quality medical metal powder materials and clinical research on minimally invasive knee joint prosthetics [9]. - The company has successfully launched several new products, including vitamin E high-crosslinked polyethylene hip and knee products, marking a significant advancement in the domestic market [11]. - The company has expanded its product line in the spinal sector, obtaining registration certificates for self-stabilizing cervical interbody fusion devices and artificial vertebral body fixation systems [11]. - In the trauma field, the company has received approvals for multiple products, including bone plates and intramedullary nails, enhancing its orthopedic product offerings [11]. - The company has made significant strides in sports medicine, obtaining registration for seven new products, which will boost sales revenue in this segment [11]. - The company has entered the oral care market, acquiring registration for orthodontic products and maxillofacial surgical devices, establishing a comprehensive oral product line [11]. Financial Performance - As of June 30, 2023, the company's operating revenue was approximately RMB 540.71 million, a decrease of 5.37% compared to RMB 571.39 million in the same period last year [17]. - The company's gross profit for the six months ended June 30, 2023, was approximately RMB 391.41 million, down 8.08% from RMB 425.80 million year-on-year, resulting in a gross margin of 72.39% [19]. - The company achieved a net profit of approximately RMB 125.99 million for the six months ended June 30, 2023, a decline of 19.74% from RMB 156.98 million in the same period last year [25]. - Sales expenses increased by 7.66% to approximately RMB 166.89 million due to the gradual recovery of market activities post-pandemic [20]. - The company's current assets decreased from approximately RMB 957.19 million as of December 31, 2022, to approximately RMB 855.12 million as of June 30, 2023 [26]. - The company reported a total of RMB 154,599,501.79 in special reserves for the period [80]. Research and Development - Research and development expenses for the first half of 2023 amounted to approximately RMB 74.57 million, representing a 3.15% increase from RMB 72.29 million in the previous year, accounting for 13.79% of revenue [22]. - 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 [40]. - The company is focusing on developing customized orthopedic implants, which include traditional and assembled customized joint prosthetics [41]. - The company is committed to enhancing its market share by strengthening production operations and internal management while expanding into new markets [41]. Corporate Governance and Compliance - The board of directors is committed to maintaining high standards of corporate governance, believing it is crucial for protecting shareholder interests and enhancing corporate value [46]. - The company has adopted the "Standard Code" for securities transactions by directors and supervisors, confirming compliance for the six months ending June 30, 2023 [47]. - The audit committee has reviewed the consolidated financial statements for the six months ending June 30, 2023, including the accounting principles and practices used [48]. - The financial report was approved by the board of directors on August 30, 2023, indicating ongoing compliance with accounting standards [86]. Shareholder Information - As of June 30, 2023, Mr. Shi Chunbao holds 113,685,435 A shares, representing 39.42% of the relevant class of share capital and 29.64% of the total share capital [50]. - Ms. Yue Shujun also holds 95,447,900 A shares, representing 33.09% of the relevant class of share capital and 24.88% of the total share capital [50]. - CITIC Securities Co., Ltd. holds 19,750,000 A shares, representing 6.85% of the relevant class of share capital and 5.15% of the total share capital [52]. - FIL Limited holds 7,791,000 H shares, representing 8.19% of the relevant class of share capital and 2.03% of the total share capital [53]. - The total number of issued shares as of June 30, 2023, is 383,568,500, comprising 288,428,000 A shares and 95,140,500 H shares [54]. Assets and Liabilities - As of June 30, 2023, total assets amounted to RMB 3,472,457,994.37, an increase from RMB 3,409,766,690.91 as of December 31, 2022, reflecting a growth of approximately 1.84% [57]. - Total liabilities reached RMB 745,055,516.20, up from RMB 690,066,911.19, marking an increase of around 7.97% [60]. - Shareholders' equity totaled RMB 2,727,402,478.17, compared to RMB 2,719,699,779.72 at the end of 2022, showing a slight increase of about 0.1% [60]. - The company's long-term liabilities, including lease liabilities, were reported at RMB 625,860.19, with deferred income tax liabilities increasing to RMB 10,439,311.12 from RMB 7,879,291.52 [58]. - The total current liabilities increased to RMB 650,355,916.53 from RMB 595,804,539.93, representing a growth of approximately 9.15% [59]. Cash Flow and Investments - The net cash outflow from operating activities was approximately RMB 38.97 million as of June 30, 2023, mainly due to increased cash received from sales [34]. - The net cash flow from operating activities is negative at RMB -38,971,893.80, an improvement from RMB -81,512,729.59 in the same period last year [71]. - The net cash flow from investing activities is RMB -63,934,501.16, an improvement from RMB -510,359,121.29 in the previous year [72]. - Cash inflow from investment activities totaled RMB 1,537,695,421.37, compared to RMB 926,741,308.22 in the previous year, indicating a significant increase [75]. - The company redeemed all structured deposit products with a total investment of RMB 30 million from Bank of Beijing, yielding an actual return of RMB 313.27 thousand at an annualized return of 3.15% [36]. Inventory and Receivables - The company reported a total inventory at the end of the period is RMB 408,488,947.36, an increase from RMB 280,772,410.70 at the beginning of the period, representing a growth of 45.5% [173]. - The raw materials inventory increased to RMB 152,517,933.68 from RMB 85,077,518.73, reflecting an increase of 79.2% [173]. - The finished goods inventory at the end of the period is RMB 199,661,078.26, up from RMB 142,731,746.75, indicating a rise of 39.7% [173]. - Accounts receivable at the end of the period totaled RMB 578,927,472.41, up from RMB 488,746,494.02, indicating an increase of approximately 18.5% [155]. - The provision for bad debts was RMB 60,772,707.03, which is 9.50% of the total accounts receivable, compared to 51,949,099.75 and 9.61% at the beginning of the period [156]. Taxation and Deferred Tax - The company maintains a corporate income tax rate of 15%, benefiting from high-tech enterprise status valid until 2023 [151]. - The total deferred tax assets at the end of the period amounted to CNY 8,156,997.68, an increase from CNY 3,130,616.33 at the beginning of the period, reflecting a growth of approximately 160% [197]. - The total deferred tax liabilities at the end of the period were CNY 10,439,311.12, up from CNY 7,879,291.52 at the beginning, representing an increase of about 32% [198]. Accounting Policies and Practices - The financial statements are prepared in accordance with the Chinese Accounting Standards, ensuring transparency and accuracy in financial reporting [86]. - The company recognizes revenue when the customer obtains control of the related goods or services, which is determined by specific indicators such as the transfer of legal ownership and the acceptance of goods [134]. - The company assesses the useful life of intangible assets based on contractual or legal rights without a clear term, and reviews these annually [125]. - The company recognizes expected credit losses for financial assets measured at amortized cost and those classified at fair value through other comprehensive income, including receivables and lease receivables [106].

Financial Performance - For the six months ended June 30, 2023, the company reported operating revenue of RMB 540,706,888.57, a significant increase from RMB 571,391,616.43 in the same period of 2022[6]. - The company's operating profit for the same period was RMB 138,459,630.64, compared to RMB 174,637,494.77 in 2022, indicating a decrease in profitability[6]. - The net profit for the six months ended June 30, 2023, was RMB 125,985,161.70, a decrease of approximately 19.7% compared to RMB 156,982,496.60 for the same period in 2022[8]. - The net profit attributable to shareholders of the parent company was RMB 126,077,038.00, down from RMB 156,982,496.60, indicating a decline of about 19.7% year-over-year[9]. - Basic and diluted earnings per share for the six months ended June 30, 2023, were both RMB 0.33, compared to RMB 0.41 for the same period in 2022, reflecting a decrease of approximately 19.5%[10]. - The total comprehensive income attributable to shareholders of the parent company for the period was RMB 125,985,161.70, compared to RMB 156,982,496.60 in the previous year, marking a decline of around 19.7%[10]. - The company's main operating revenue for the first half of 2023 was RMB 540,241,563.44, compared to RMB 569,856,989.16 in the same period of 2022, indicating a decline of about 5.23%[24]. - The company's gross profit for the same period was approximately RMB 391.41 million, down 8.08% from RMB 425.80 million year-on-year, resulting in a gross margin of 72.39%, a decline of 2.13%[46]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 3,472,457,994.37, up from RMB 3,409,766,690.91 at the end of 2022[2]. - The total liabilities increased to RMB 745,055,516.20 as of June 30, 2023, compared to RMB 690,066,911.19 at the end of 2022[4]. - The company’s cash and cash equivalents totaled RMB 855,124,538.98 as of June 30, 2023, compared to RMB 957,193,661.02 at the end of 2022[2]. - The company’s accounts receivable increased to RMB 578,927,472.41 as of June 30, 2023, from RMB 488,746,494.02 at the end of 2022, reflecting a growth of approximately 18.5%[2]. - The total accounts payable as of June 30, 2023, was RMB 232,142,733.03, slightly down from RMB 237,786,563.39 at the end of 2022, indicating a decrease of about 2.7%[19]. - The company's current assets decreased from approximately RMB 957.19 million as of December 31, 2022, to RMB 855.12 million as of June 30, 2023[53]. - The company's net current assets decreased from approximately RMB 2,183.28 million as of December 31, 2022, to approximately RMB 2,171.08 million as of June 30, 2023, primarily due to an increase in current liabilities during the period[60]. Research and Development - Research and development expenses for the first half of 2023 were RMB 74,572,384.70, slightly higher than RMB 72,289,835.94 in the same period of 2022[6]. - The company has significantly increased its R&D investment, resulting in a large number of domestic and international registrations obtained in the first half of 2023[34]. - The company plans to establish a product R&D center at the Daxing New Production Base, which will include departments for joint prosthetics, spine products, orthopedic trauma products, and a biomechanics center[68]. - The company is focused on developing standard joint prosthetic products, advanced customized joint prosthetic products, orthopedic robots, spine products, trauma, sports medicine products, PRP products, and oral products[68]. Market and Growth Strategy - The company plans to continue its market expansion and product development strategies to enhance future growth prospects[11]. - The orthopedic medical device market in China is experiencing growth due to factors such as an aging population and increased healthcare spending[32]. - The company aims to enhance its market share by improving its product portfolio and expanding its marketing network[33]. - The company is actively expanding its product line to meet diverse market and clinical needs, enhancing its overall competitiveness[34]. - The company aims to achieve a targeted annual growth rate of 5% in the upcoming fiscal year[63]. Compliance and Governance - The financial statements were prepared based on the going concern assumption, adhering to the applicable disclosure requirements under Hong Kong company regulations[12]. - The company has adopted new and revised Chinese accounting standards effective as of June 30, 2023, to ensure compliance with regulatory requirements[12]. - The audit committee has reviewed the consolidated financial statements for the six months ended June 30, 2023, including the accounting principles applied[74]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[72]. Employee and Talent Management - As of June 30, 2023, the company employed approximately 1,379 employees, with total salary and related costs amounting to approximately RMB 135.89 million[70]. - The company continues to implement its existing talent development policies and has established an effective incentive mechanism to motivate employees[69]. International Expansion - The company obtained registration certificates for 19 countries, including Ukraine, South Korea, and Mexico, enhancing its international sales capabilities[41]. - The company has completed several clinical research projects and has received approvals for various innovative medical materials and products[36]. - The company is committed to maintaining its leading position in the domestic market while strengthening its international business development and market promotion efforts[66].

Investment Strategy - Beijing Chunlizhengda Medical Instruments Co., Ltd. reported significant investments in structured deposit products, with a total investment amount of RMB 67,000,000 across various banks[2]. - The company has maintained a focus on utilizing idle fundraising for investment in structured deposits, enhancing liquidity management[3]. - The company continues to explore further investment opportunities in structured financial products to optimize asset allocation[4]. - The structured deposits are part of the company's broader financial strategy to ensure capital preservation and yield enhancement[4]. - The investment in structured deposit products is aimed at effectively utilizing temporarily idle funds raised from the public offering of A-shares, enhancing the overall capital return of the group[5]. Financial Performance - The annualized return for the structured deposits from Beijing Bank ranged from 1.35% to 1.6%, with actual returns reported at 3.2% for some products[2][3]. - The actual returns from structured deposits were reported as RMB 126.25 million, RMB 236.71 million, and RMB 196.03 million, reflecting positive investment outcomes[2][3]. - The company recorded investment income from structured deposit products of approximately RMB 6,748,000 and fair value changes of structured deposit products amounting to approximately RMB 9,491,000 as of December 31, 2022[5]. - As of December 31, 2022, the balance of structured deposit products was RMB 765,000,000, with a fair value of approximately RMB 767,728,000, accounting for about 23% of the company's total assets[5]. Cash Management - The company fully redeemed all structured deposits by the end of the reporting period, indicating effective cash management strategies[2][3]. - The company's core objectives include ensuring capital security and maintaining liquidity[5]. Banking Relationships - The company has established relationships with reputable banks, ensuring reliable investment channels for its financial products[4]. Monitoring and Future Objectives - The financial performance and investment strategies will be closely monitored to align with future growth objectives[4]. - The supplementary information provided does not affect other data disclosed in the 2022 annual report[5].

Financial Performance - The company's operating revenue for Q1 2023 was RMB 246,355,024.32, representing a decrease of 4.18% compared to the same period last year[5] - Net profit attributable to shareholders for Q1 2023 was RMB 55,861,404.05, down 24.53% year-on-year[5] - The net profit after deducting non-recurring gains and losses was RMB 49,607,213.75, reflecting a decline of 33.36% compared to the previous year[5] - Basic and diluted earnings per share for Q1 2023 were both RMB 0.15, a decrease of 21.05% year-on-year[7] - The weighted average return on equity was 2.03%, down by 0.92 percentage points compared to the previous year[7] - The report indicates that the company is committed to enhancing its market position through strategic investments in R&D and product development[10] - The company reported a net profit margin decline due to increased operating costs, impacting overall profitability[16] - The net profit for Q1 2023 was CNY 55,861,404.05, a decrease of 24.5% compared to CNY 74,021,366.53 in Q1 2022[18] - Operating profit for Q1 2023 was CNY 62,341,671.90, down 26.0% from CNY 84,279,091.21 in the same period last year[18] Cash Flow - The net cash flow from operating activities was negative RMB 120,197,574.28, indicating a significant cash outflow[7] - The net cash flow from operating activities was not applicable, primarily due to increased R&D expenditures and higher cash outflows for raw material purchases influenced by "volume-based procurement"[10] - Cash flow from operating activities in Q1 2023 showed a net outflow of CNY 120,197,574.28, compared to a net outflow of CNY 20,120,816.00 in Q1 2022[21] - Cash inflow from investment activities in Q1 2023 was CNY 771,181,481.64, compared to CNY 904,215.33 in Q1 2022[21] - Cash outflow for the purchase of fixed assets and intangible assets in Q1 2023 was CNY 1,025,917.03, significantly lower than CNY 21,232,408.43 in Q1 2022[21] - The net increase in cash and cash equivalents was -$118,849,021.05, a notable decline from -$710,667,029.94 in the previous period[22] - The ending balance of cash and cash equivalents stood at $838,344,639.97, down from $1,025,826,965.44 in the previous period[22] Assets and Liabilities - Total assets at the end of Q1 2023 were RMB 3,391,412,670.08, a slight decrease of 0.54% from the end of the previous year[7] - Current assets totaled CNY 2,745,321,590.09, a slight decrease from CNY 2,779,088,982.86 in the previous year[14] - Non-current assets increased to CNY 646,091,079.99 from CNY 630,677,708.05 year-over-year[14] - Total liabilities decreased to CNY 615,416,974.31 from CNY 690,066,911.19 in the previous year[15] - Shareholders' equity rose to CNY 2,775,995,695.77, up from CNY 2,719,699,779.72 year-over-year[15] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 5,766, with the top ten shareholders holding significant stakes[11] - The largest shareholder, Shi Chunbao, held 29.88% of the shares, while the second-largest shareholder, Yue Shujun, held 24.84%[11] - The top ten shareholders include various institutional and individual investors, indicating a diverse ownership structure[12] - The company has not reported any significant changes in the relationships or agreements among the top shareholders[12] - The company has not disclosed any significant pledges or freezes on shares held by the top shareholders[12] Research and Development - Research and development expenses totaled RMB 33,270,315.66, accounting for 13.51% of operating revenue, an increase of 0.63 percentage points year-on-year[7] - The net profit attributable to shareholders, excluding non-recurring gains and losses, decreased by 33.36% due to the impact of "volume-based procurement" leading to a decline in terminal selling prices and increased R&D investments[10] - The company is focusing on long-term strategic planning, emphasizing the development of new products, technologies, and processes to drive innovation and product iteration[10] - The company has increased its R&D investment to support technological innovation and product upgrades[10] - Research and development expenses for Q1 2023 were CNY 33,270,315.66, slightly up from CNY 33,114,231.75 in Q1 2022[18] Operating Costs - Total operating costs increased to CNY 183,535,965.29, up 7.8% from CNY 170,342,269.72 in the previous year[16] - Operating costs included CNY 77,916,277.20 in operating expenses, which rose significantly from CNY 50,214,509.64 in Q1 2022[16] - The company recorded a decrease in sales expenses to CNY 64,965,051.80 in Q1 2023 from CNY 79,897,136.99 in Q1 2022, a reduction of 18.7%[18] Foreign Exchange and Accounting - The company recorded a foreign exchange gain of CNY 2,022,556.16 in Q1 2023, compared to a gain of CNY 1,695,561.64 in Q1 2022, indicating an increase of 19.2%[18] - The impact of exchange rate changes on cash and cash equivalents was -$218,020.84, reflecting currency fluctuations during the period[22] - The company did not apply new accounting standards or interpretations for the first quarter of 2023[23]

Financial Performance - In 2022, the company achieved operating revenue of RMB 1,201.60 million, representing a year-on-year growth of 8.43%[8]. - The net profit attributable to shareholders of the listed company was RMB 307.72 million, a decrease of 4.54% compared to the previous year[8]. - Basic earnings per share were RMB 0.80, reflecting a decline of 13.98% year-on-year[8]. - The company's operating revenue increased by 8.43% from approximately RMB 1,108.14 million in 2021 to approximately RMB 1,201.61 million in 2022, driven by growth in joint prosthesis sales and continuous sales increases in spinal and sports medicine products[17]. - Revenue from joint prosthesis products was approximately RMB 1,046.39 million, a slight increase of 1.05% from RMB 1,035.55 million in 2021; spinal products revenue surged by 70.14% to RMB 115.87 million; sports medicine products revenue skyrocketed by 927.01% to RMB 36.77 million[18]. - Gross profit rose by 6.90% from approximately RMB 854.54 million in 2021 to approximately RMB 913.53 million in 2022, while the gross profit margin decreased from 77.11% to 76.03% due to price reductions from the implementation of centralized procurement policies[19]. - The company's net profit decreased by 4.54% from approximately RMB 322.36 million in 2021 to approximately RMB 307.72 million in 2022, primarily due to price declines in products affected by centralized procurement policies[26]. - The total comprehensive income for 2022 was RMB 298,778,119.15, a decrease of approximately 7.5% from RMB 322,989,532.24 in the previous year[184]. Assets and Liabilities - The total assets of the company increased to RMB 3,409.77 million, up 13.67% from the end of the previous year[8]. - The company's current assets decreased by 44.88% from approximately RMB 1,736.49 million in 2021 to approximately RMB 957.19 million in 2022, mainly due to investments in financial products[26]. - The company's total current assets increased by 8.72% from approximately RMB 2,008.14 million in 2021 to approximately RMB 2,183.28 million in 2022[33]. - As of December 31, 2022, the company's accounts receivable balance was CNY 540.70 million, with a provision for bad debts amounting to CNY 51.95 million[166]. - The company's inventory balance as of December 31, 2022, was CNY 280.77 million, with a provision for inventory impairment of CNY 20.98 million[168]. - As of December 31, 2022, total liabilities amounted to RMB 690,066,911.19, an increase of 30.1% from RMB 530,579,974.97 in 2021[176]. - Current liabilities totaled RMB 595,804,539.93, up 35.5% from RMB 439,618,888.24 in the previous year[176]. Research and Development - The company has increased R&D investment, achieving significant results in laboratory construction and product development, with a total of 21 testing qualifications obtained by December 31, 2022[10]. - Research and development expenses increased by 54.84% from approximately RMB 104.84 million in 2021 to approximately RMB 162.34 million in 2022, accounting for 13.51% of total revenue, reflecting the company's focus on long-term strategic planning and innovation[23]. - Two products under the national key R&D project have entered the registration review stage, indicating progress in innovative product development[10]. - The company is committed to becoming a first-class international orthopedic innovation enterprise by enhancing R&D capabilities and brand influence[14]. Market Expansion and Strategy - The company successfully registered its products in eight countries, including Ukraine, South Korea, and Mexico, to expand its international market presence[9]. - The company accelerated the development of new products and expanded its market share amid ongoing pandemic challenges[7]. - The orthopedic implant market in China is expected to grow due to favorable factors such as an aging population and increased healthcare spending[16]. - The company aims to maintain its leading position in the domestic joint prosthesis market and continuously improve market share[12]. - The company plans to establish a professional sales team to enhance the development of various product lines, including joints, spine, sports medicine, and dental products[13]. - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by 2025[56]. Corporate Governance and Compliance - The company has complied with all applicable principles and code provisions of the corporate governance code as of December 31, 2022[51]. - The board of directors consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors[100]. - The company is committed to maintaining high corporate governance standards and has complied with all applicable principles and provisions[99]. - The independent non-executive directors possess extensive experience in corporate governance, financial management, and medical engineering[102]. - The company has established a salary committee to review the compensation policy for all directors and senior management, considering operational performance and market practices[83]. Environmental and Social Responsibility - The company is committed to environmental sustainability by promoting energy conservation and encouraging the reuse of office supplies[86]. - The company has established a comprehensive environmental management system to mitigate its impact on natural resources[140]. - The company has committed to sustainable development and actively responds to national carbon neutrality policies[144]. - The company produced 6.905 tons of titanium waste in 2022, with a waste generation rate of 0.09 kg per RMB 10,000 of output[142]. - The total greenhouse gas emissions in 2022 included 19.37 tons of direct CO2 emissions and 3,216.9 tons of indirect CO2 emissions, with a CO2 emission rate of 0.0222 tons per RMB 10,000 of product[142]. Employee and Community Engagement - As of December 31, 2022, the company employed approximately 1,303 staff, with total salary and related costs amounting to RMB 193.41 million[43]. - The company has established multiple promotion pathways, including technical and management routes, to support employee development[151]. - The company has implemented a health check policy for new employees and provides annual health check cards for existing employees[148]. - The company continues to support the "Spring Sunshine Project," providing free internal fixation materials for joint replacement surgeries to impoverished patients, benefiting over 80 hospitals nationwide[158]. - The company has been actively involved in community investment, collaborating with various charitable organizations and conducting donation activities[158].