Company Performance - The company ranked 35th among the top 100 wholesale enterprises in China based on revenue from its principal business in 2023[3]. - The company ranked 6th among pharmaceutical distribution businesses in Guangdong Province[3]. - For the year ended December 31, 2024, the Group's operating revenue increased by 0.72% to RMB 4,435.46 million from RMB 4,403.63 million in 2023[22]. - Gross profit rose by 10.94% to RMB 324.76 million, with a gross profit margin increase from 6.65% in 2023 to 7.32% in 2024[22]. - Net profit attributable to shareholders of the parent company increased by 3.78% to RMB 53.28 million from RMB 51.34 million in 2023[22]. - The total operating revenue for the year ended December 31, 2024, was RMB 4,435.5 million, representing a slight increase from RMB 4,403.6 million in 2023[38]. - The net profit attributable to shareholders of the parent company for 2024 was RMB 53.3 million, up from RMB 51.3 million in 2023, indicating a growth of approximately 3.8%[38]. - The total assets as of December 31, 2024, reached RMB 3,456.6 million, an increase from RMB 3,247.7 million in 2023, reflecting a growth of about 6.4%[38]. Market Position and Strategy - The company has been recognized as an Excellent Pharmaceutical Logistics and Distribution Enterprise for four consecutive years and has received multiple awards for its logistics capabilities[5]. - The company has been consistently ranked among the "Guangdong Top-500 Enterprises" and the "Top-100 Wholesalers in the Pharmaceutical Distribution Industry" for over a decade[24]. - The Group aims to strengthen its competitive edge through the establishment of Guangdong Charmacy Pharmaceutical Logistics Co., Ltd. in June 2024, focusing on domestic freight forwarding services[20]. - The Group plans to focus on the non-bidding market and build a high-quality development path in 2025, enhancing its logistics distribution system and third-party logistics service competitiveness[27]. - The Group's strategy includes leveraging artificial intelligence and big data to enhance operational efficiency and meet evolving pharmaceutical distribution needs[28]. - The company aims to enhance competitiveness in third-party logistics services by leveraging artificial intelligence for operational decision-making[32]. - The company is committed to exploring high-quality development pathways and unlocking new profit engines for sustainable growth[32]. Digital Transformation and Innovation - The pharmaceutical distribution industry in China is experiencing profound changes, shifting towards supply chain management, digital operations, and professional services[20]. - The pharmaceutical distribution industry is transitioning towards a model focused on supply chain management, digital operations, and professional services[41]. - The digital transformation of pharmaceutical distributors is being driven by regulatory constraints and medical insurance policies, further deepening their operational capabilities[59]. - The company aims to achieve intelligent management of the entire process and improve efficiency through the integration of digitalization and AI technology[96]. - The Group is leveraging digital technologies to improve service capabilities in the pharmaceutical supply chain, enhancing the "last mile" service through advanced technologies like big data and AI[87]. - The company is exploring AI applications to enhance operational efficiency, with successful automation upgrades in financial management and logistics[72]. - The company aims to establish an end-to-end intelligent business ecosystem through full-process digital integration and continuous iteration of AI models[73]. Logistics and Distribution Network - The company operates a modern information system covering the entire pharmaceutical distribution supply chain, including procurement, sales, warehousing, transportation, and delivery[3]. - The company has established a highly efficient delivery mechanism, providing three deliveries per day within a 10-kilometer radius[3]. - The company has four modern pharmaceutical logistics centers and a professional marketing service team[3]. - The Group established a large pharmaceutical sorting and distribution centre in Shenzhen, enhancing its influence in the Greater Bay Area's pharmaceutical terminal market and promoting the coordinated upgrading of the regional pharmaceutical industry chain[76]. - The Group's logistics network adheres to unified Good Supply Practice (GSP) management standards, ensuring standardized storage conditions and enhancing service quality[77]. - The Group's third-party pharmaceutical logistics business saw a year-on-year increase of 30% in the number of clients and over 55% growth in corresponding revenue as of December 31, 2024[81]. Customer and Supplier Relationships - As of December 31, 2024, the Group's distribution network covered 14,429 customers, including 13,744 pharmaceutical retail customers, and collaborated with 1,206 suppliers[19]. - The company has strengthened cooperation with 1,206 suppliers, including 623 pharmaceutical manufacturers and 583 distributor suppliers, representing an increase of 60 suppliers compared to last year[65]. - The company distributed 12,810 product specifications as of December 31, 2024, an increase from 12,212 in 2023, with 4,759 being Chinese patent medicines and 4,664 Western medicines[66][65]. Financial Management and Costs - Operating costs remained stable at RMB 4,110.70 million for 2024, slightly down from RMB 4,110.89 million in 2023[114]. - Selling expenses decreased by 1.65% to RMB 120.44 million in 2024, compared to RMB 122.47 million in 2023[122]. - Management expenses increased by 15.33% to RMB 54.82 million in 2024, primarily due to increased employee compensation expenses[123]. - Finance costs surged by 47.09% to RMB 62.29 million in 2024, driven by increased bank loans and corresponding interest expenses[124]. - Income tax expenses rose by 11.40% to RMB 17.91 million in 2024, up from RMB 16.07 million in 2023[125]. Leadership and Governance - The company has a diverse leadership team with extensive experience in finance, management, and the pharmaceutical industry, enhancing its strategic decision-making capabilities[182]. - The Group is focused on expanding its market presence and enhancing product management through experienced leadership[176]. - The leadership team is well-equipped to navigate the complexities of the pharmaceutical market, leveraging their combined expertise for strategic initiatives[190].

2024年中国医药流通行业在政策深化与数智化双轮驱动下实现高质量发展。老龄化与健康需求升级推动 服务多元化，医改加速处方外流，院外市场持续扩容，零售终端规模逐渐主导行业增量。报告期内，创 美药业依托扎实的零售终端网络与供应链协同能力，紧抓行业机遇，深化供应链效率与提升精准服务能 力，在高质量发展新周期中实现规模与效益双升。2024年，集团收入录得人民币44.35亿元，净利润达 人民币5328万元，均同比2023年有所增长，集团基本及稀释每股收益亦增长至人民币0.4934元。董事会 建议就截至2024年12月31日止年度派发末期股息每股人民币0.45元(含税)，派息比例高达91%。 2024年，创美药业依托立体化营销网络，携手华润三九（000999）、赫力昂、广药白云山等知名药企构 建完整的产业链和商业生态体系。集团通过品种资源整合、购销渠道优化、数智化物流等核心优势，助 力药企降低渠道拓展难度，促进品牌价值与市场效益提升。同时，集团积极推进千万级厂牌政策，结合 创新的多维度营销策略，实现产品快速流通与高效转化。截至2024年12月31日，集团分销产品12810 种，供应商1206家，分销网络覆盖14429名客 ...

Financial Performance - For the year ending December 31, 2024, the group's operating revenue was RMB 4,435.46 million, an increase of 0.72% compared to RMB 4,403.63 million in 2023[4] - The net profit for the year 2024 was RMB 53.28 million, reflecting a growth of 3.78% from RMB 51.34 million in 2023[4] - The basic and diluted earnings per share for 2024 were RMB 0.4934, up from RMB 0.4754 in 2023[4] - Revenue from main business operations reached RMB 4,385,119,653.22 for the year ending December 31, 2024, compared to RMB 4,347,522,184.54 in 2023, reflecting a growth of approximately 0.9%[27] - Total revenue for the year was RMB 4,435,460,674.85, slightly up from RMB 4,403,633,478.08 in the previous year, indicating an increase of about 0.7%[27] - The gross profit increased by 10.94% to RMB 324.76 million for the year ending December 31, 2024, compared to RMB 292.74 million in 2023, with the gross margin rising from 6.65% to 7.32%[83] Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 3,456.64 million, compared to RMB 3,247.66 million as of December 31, 2023[7] - Current assets totaled RMB 3,029.99 million as of December 31, 2024, an increase from RMB 2,811.99 million in 2023[7] - Total liabilities increased to RMB 2,837,952,734.34 as of December 31, 2024, up from RMB 2,649,849,020.30 in 2023, representing a growth of approximately 7.1%[8] - Current liabilities totaled RMB 2,788,603,021.09, an increase from RMB 2,618,858,000.99 in the previous year, marking a rise of about 6.5%[8] - Shareholders' equity totaled RMB 618,690,947.99 as of December 31, 2024, compared to RMB 597,806,856.30 in 2023, representing an increase of approximately 3.1%[8] Cash Flow and Financial Position - Cash and cash equivalents decreased to RMB 563.15 million in 2024 from RMB 634.20 million in 2023[7] - The company reported a net profit increase in retained earnings, with undistributed profits rising to RMB 200,556,936.21 from RMB 181,154,889.21, a growth of about 10.5%[8] - The group's current ratio improved to 1.09 as of December 31, 2024, compared to 1.07 as of December 31, 2023[90] - The group's capital debt ratio increased to 51.37% as of December 31, 2024, from 44.28% as of December 31, 2023[97] Expenses - The group's total operating costs for 2024 were RMB 4,358.59 million, compared to RMB 4,332.54 million in 2023[5] - Sales expenses decreased by 1.65% to RMB 120.44 million for the year ending December 31, 2024, from RMB 122.47 million in 2023[84] - Management expenses increased by 15.33% to RMB 54.82 million for the year ending December 31, 2024, primarily due to new personnel and training investments[85] - Financial expenses rose by 47.09% to RMB 62.29 million for the year ending December 31, 2024, attributed to increased bank borrowings and related interest costs[86] Accounts Receivable and Payable - The company reported a significant increase in accounts receivable, rising to RMB 1,163.24 million in 2024 from RMB 961.72 million in 2023[7] - Accounts receivable increased to RMB 1,184,455,239.82 at year-end from RMB 982,891,686.13 at the beginning of the year, with a net amount of RMB 1,163,237,552.39 after deducting bad debt provisions[40] - The company recorded a bad debt provision of RMB 21,217,687.43 for accounts receivable, slightly up from RMB 21,172,836.07 at the beginning of the year[40] - The year-end balance of accounts payable totaled RMB 387,825,713.54, down from RMB 659,073,566.35 at the beginning of the year, indicating a decrease of approximately 41%[49] Market and Industry Insights - The pharmaceutical distribution market in China is projected to grow to RMB 4 trillion by 2028, with a compound annual growth rate of 7%[53] - The retail pharmacy market is expected to reach RMB 574 billion in 2024, showing a year-on-year growth of 3.7%[55] - The online pharmaceutical market in China has reached a sales figure of over RMB 60 billion in 2023, reflecting a year-on-year growth of 28.46%[74] Strategic Initiatives - The company is leveraging new technologies such as big data and AI to enhance service capabilities and meet evolving market demands[57] - The company aims to build a comprehensive marketing ecosystem by closely collaborating with upstream and downstream partners, enhancing brand value and market effectiveness[64] - The company is committed to a digital transformation strategy, focusing on end-to-end intelligent business closed-loop construction through continuous iteration of AI models[66] - The company has established modern pharmaceutical distribution centers in Guangzhou, Shantou, Shenzhen, and Zhuhai, equipped with advanced logistics networks and information systems[69] Governance and Compliance - The company has adhered to the corporate governance code as per the listing rules for the year ending December 31, 2024, and will continue to review its governance practices[109] - All directors and supervisors have complied with the standard code for securities transactions during the year ending December 31, 2024[110] - The audit committee, consisting of three members, has reviewed the accounting principles and policies adopted by the group for the year ending December 31, 2024[112]

Company Recognition and Awards - In the first half of 2024, the Group was recognized as an Excellent Pharmaceutical Logistics and Distribution Enterprise for four consecutive years[1] - The Group has received multiple awards, including the Best Pharmaceutical Cold Chain Logistics Centre for six consecutive years[1] - The Company has been awarded the China Logistics Industry "Golden Ant" Innovation Award for seven consecutive years[1] Market Position and Revenue - The Company ranked 35th among the top 100 wholesalers in China based on revenue generated from its principal business in 2023[1] - The Company ranked 6th among pharmaceutical distribution enterprises in Guangdong Province[1] - Operating revenue for the six months ended June 30, 2024, was RMB 2,347,185, representing a year-on-year increase of 3.44% compared to RMB 2,269,074 in 2023[25] - Revenue from principal business reached RMB 2,325,460, up from RMB 2,241,971 in the previous year, indicating a growth of 3.7%[57] - Revenue from distributors was RMB 1,093,126, slightly up from RMB 1,076,993, while revenue from retail pharmacy stores increased to RMB 1,151,208 from RMB 1,085,417[57] Financial Performance - Total profit for the same period was RMB 38,928, reflecting a year-on-year growth of 10.72% from RMB 35,157 in 2023[25] - Net profit attributable to the shareholders of the parent company was RMB 26,747, a slight increase of 1.50% from RMB 26,353 in 2023[25] - Basic and diluted earnings per share for the six months ended June 30, 2024, were RMB 0.2477, up 1.50% from RMB 0.2440 in 2023[25] - The Group's gross profit increased by 18.85% from RMB 142.35 million for the six months ended June 30, 2023, to RMB 169.18 million for the same period in 2024[61] - The gross profit margin rose from 6.27% to 7.21% due to a 58.49% year-on-year increase in third-party logistics revenue and adjustments in product mix[61] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 3,270,652, showing a 0.71% increase from RMB 3,247,656 as of December 31, 2023[26] - Total liabilities increased by 1.08% to RMB 2,678,497 as of June 30, 2024, compared to RMB 2,649,849 at the end of 2023[26] - Shareholders' equity decreased by 0.95% to RMB 592,154 as of June 30, 2024, down from RMB 597,807 at the end of 2023[26] Distribution Network and Product Range - As of June 30, 2024, the distribution network covered 12,794 customers, an increase of 532 compared to the same period last year, including 611 distributors and 8,516 retail pharmacy stores[36] - The company distributed 11,596 types of products, representing an increase of 838 products compared to the same period last year, with a total of 1,052 suppliers[36] - The total number of products increased to 11,596 for the six months ended June 30, 2024, compared to 10,758 in the same period of 2023, representing a growth of approximately 7.8%[37] Industry Trends and Market Outlook - The pharmaceutical distribution market in China is projected to exceed RMB 4 trillion by 2028, with a compound growth rate of 7%[27] - The out-of-hospital market is expected to reach RMB 1.6 trillion by 2029, potentially matching or exceeding the in-hospital market[29] - The pharmaceutical distribution industry is moving towards high-quality development, with increasing industry concentration and deepening professional services[29] - The ongoing healthcare reforms in China are expected to significantly impact the pharmaceutical industry, shifting the focus from treating diseases to prioritizing people's health[48] Digital Transformation and Technology Integration - The integration of emerging technologies such as AI, big data, and cloud computing is accelerating the digitalisation of the pharmaceutical distribution industry[30] - The Group aims to leverage digital technologies to improve efficiency and quality across the entire pharmaceutical supply chain, including R&D, production, distribution, and service[48] - The focus on digital transformation in the pharmaceutical industry will enhance brand promotion and marketing capabilities[49] Strategic Initiatives and Future Plans - The Company adheres to a development strategy of "Intensive Engagement in Guangdong Province and Extensive Coverage across Surrounding Areas"[1] - The company plans to deepen strategic cooperation with brand manufacturers to capture growth opportunities in non-tendering market products[51] - The company aims to enhance its logistics capabilities and expand third-party logistics business to improve operational efficiency[51] - The Group plans to strengthen risk management and improve operational quality to ensure continuous competitiveness[49] Governance and Compliance - The Company complied with the Corporate Governance Code during the reporting period, with ongoing reviews to enhance governance standards[87] - The Audit Committee has reviewed the unaudited interim results for the six months ended June 30, 2024, ensuring compliance with applicable accounting standards[103] - The Group's financial statements are prepared according to the Accounting Standards for Business Enterprises promulgated by the Ministry of Finance[131] Cash Flow and Financial Management - Cash flow from operating activities showed a net outflow of RMB 174,686,709.65, an improvement compared to the outflow of RMB 228,779,953.32 in the prior period[116] - Cash received from sales of goods and services amounted to RMB 2,016,748,960.28, up from RMB 1,819,538,031.52, marking an increase of about 10.9%[116] - The Group continues to assess its customers' credit and financial positions to minimize credit risks and maintain a sound liquidity position[72] Shareholder Information - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the interim dividend of 2023, which was also nil[86] - As of June 30, 2024, Mr. Yao Chuanglong held 34,530,000 H Shares, representing approximately 31.97% of the total issued share capital of 108,000,000 H Shares[92][94] - Ms. You Zeyan holds a beneficial interest in 29,050,000 H Shares, representing approximately 26.90% of the total issued share capital[99] Accounting Policies and Financial Reporting - The Group's accounting policies are aligned with the Accounting Standards for Business Enterprises, ensuring accurate financial reporting[3] - The Group recognizes income when the customer gains control over goods or services, typically three days after shipment[185] - The Group recognizes deferred income tax assets for all unutilized deductible losses within the limit of sufficient taxable income[190]

Financial Performance - The company's operating revenue for the six months ended June 30, 2024, was RMB 2,347,185,000, representing a year-on-year increase of 3.44% compared to RMB 2,269,074,000 in the same period of 2023[1]. - The total profit for the period was RMB 38,928,000, an increase of 10.72% from RMB 35,157,000 in the previous year[1]. - Net profit attributable to shareholders of the parent company was RMB 26,747,000, reflecting a year-on-year growth of 1.50% from RMB 26,353,000[1]. - Basic and diluted earnings per share were RMB 0.2477, up from RMB 0.2440, marking a 1.50% increase[1]. - The company's main business revenue for the six months ended June 30, 2024, was RMB 2,325.46 million, an increase of 3.71% from RMB 2,241.97 million for the same period in 2023[60]. - The company's operating income for the six months ended June 30, 2024, was RMB 2,347.18 million, up 3.44% from RMB 2,269.07 million in the previous year[61]. - Gross profit increased by 18.85% to RMB 169.18 million for the six months ended June 30, 2024, compared to RMB 142.35 million for the same period in 2023, with the gross margin rising from 6.27% to 7.21%[62]. - Net profit increased by 1.50% from RMB 26.35 million for the six months ended June 30, 2023, to RMB 26.75 million for the six months ended June 30, 2024, primarily due to stable growth in core business[67]. Operating Costs and Expenses - Total operating costs for the period were RMB 2,303,414,000, compared to RMB 2,231,021,000 in the same period last year[3]. - Financial expenses increased significantly to RMB 34,102,000 from RMB 17,786,000, primarily due to higher interest expenses[3]. - The company's sales expenses remained stable at RMB 62.88 million for the six months ended June 30, 2024, a slight decrease of 0.10% from RMB 62.94 million in the previous year[63]. - Management expenses increased by 23.12% to RMB 23.33 million for the six months ended June 30, 2024, compared to RMB 18.95 million for the same period in 2023[64]. - Financial expenses surged by 91.74% to RMB 34.10 million for the six months ended June 30, 2024, primarily due to an increase in short-term borrowings[65]. - Income tax expenses rose by 38.34% to RMB 12.18 million for the six months ended June 30, 2024, compared to RMB 8.80 million for the same period in 2023[66]. Assets and Liabilities - As of June 30, 2024, total assets amounted to RMB 3,270,651,527.39, an increase from RMB 3,247,655,876.60 as of December 31, 2023, reflecting a growth of approximately 0.7%[7][9]. - Current assets totaled RMB 2,832,717,939.94, slightly up from RMB 2,811,999,921.54, indicating a growth of about 0.7%[7]. - The company's cash and cash equivalents decreased to RMB 404,288,707.41 from RMB 634,197,229.09, representing a decline of approximately 36.2%[7]. - Total liabilities increased to RMB 2,678,497,435.56 from RMB 2,649,849,020.30, marking a rise of about 1.1%[9]. - The company's total equity decreased to RMB 592,154,091.83 from RMB 597,806,856.30, reflecting a decline of about 1.0%[9]. - The debt-to-capital ratio increased to 52.96% as of June 30, 2024, from 44.28% as of December 31, 2023[74]. Accounts Receivable and Payable - The accounts receivable balance as of June 30, 2024, was approximately $1.06 billion, an increase from $982.9 million as of December 31, 2023, indicating a growth of 7.9%[31]. - The net accounts receivable after provisions for bad debts was approximately $1.04 billion as of June 30, 2024, compared to $961.7 million at the end of 2023, showing an increase of 8.5%[31]. - The total accounts payable as of June 30, 2024, is approximately $513.25 million, a decrease of about 22.1% from $659.07 million as of December 31, 2023[40]. - Accounts payable within one year account for approximately 98.5% of the total, with a balance of about $507.13 million[41]. Market and Strategic Focus - The company continues to focus on expanding its market presence and enhancing product development strategies[2]. - The company is positioned to benefit from the ongoing transformation in China's healthcare sector, focusing on high-quality development and increased demand for pharmaceutical services[42]. - The overall pharmaceutical distribution market is steadily growing, with a shift towards retail and outpatient markets due to recent healthcare reforms[45]. - The company aims to deepen strategic cooperation with brand manufacturers to capture growth opportunities in non-tender market products[57]. - The company is actively seeking domestic and international industry cooperation opportunities to promote high-quality development and optimize its product supply chain[59]. Logistics and Distribution - The establishment of the Shenzhen Pharmaceutical Logistics Center aims to enhance the company's influence in the Greater Bay Area and is strategically significant for logistics network deployment in Guangdong Province[51]. - The company achieved a year-on-year increase of over 22% in the number of clients for third-party logistics services and a revenue growth of over 58%[51]. - Guangdong Chuangmei Pharmaceutical Logistics Co., Ltd. was established to promote the company's third-party logistics business towards scale, standardization, and intelligence[52]. - The company is focused on digital and intelligent transformation in the pharmaceutical industry, leveraging advanced technologies like big data and AI to enhance efficiency across the supply chain[53]. Dividend and Investments - The company did not declare an interim dividend for the six months ended June 30, 2024, maintaining the same stance as in 2023[25]. - There were no significant investments or acquisitions during the reporting period[77][79].

Company Performance - Charmacy Pharmaceutical Co., Ltd. ranked 38th among the top 100 wholesale enterprises in China based on revenue from its principal business in 2022[3]. - The company achieved a gross revenue of RMB 271.76 million in 2022, reflecting a significant increase from previous years[10]. - In 2023, the company's revenue reached RMB 292.74 million, with a gross profit margin increasing to 6.65% from 6.51% in 2022[18]. - The total operating revenue reached RMB 4,403,633, an increase from RMB 4,175,279 in 2022, representing a growth of approximately 5.5%[28]. - The total profit for 2023 was RMB 67,420, a decrease from RMB 122,054 in 2022, indicating a decline of about 44.9%[28]. - Net profit attributable to shareholders of the parent company was RMB 51,345 in 2023, down from RMB 90,472 in 2022, reflecting a decrease of approximately 43.2%[28]. - The Group's operating revenue for the year ended December 31, 2023, was RMB 4,403.63 million, an increase of 5.47% from RMB 4,175.28 million for the year ended December 31, 2022[168]. - The principal business revenue amounted to RMB 4,347,522,000, up from RMB 4,140,664,000 in the previous year, reflecting a growth of 5.0%[108]. Logistics and Distribution - The company operates a B2B e-commerce platform "Charmacy e-Medicine" for online ordering, inquiries, and payments[3]. - The logistics system includes a highly efficient delivery mechanism with multiple daily deliveries within specified radii[3]. - The company has received multiple awards for its logistics capabilities, including the Best Pharmaceutical Cold Chain Logistics Centre for five consecutive years[5]. - The company has established medium and large modern pharmaceutical distribution centers in Shantou, Guangzhou, Zhuhai, and Huizhou, equipped with advanced logistics technology to ensure quality and safety of pharmaceuticals[140]. - The company emphasizes the importance of high-quality management and operational excellence in selecting contractors for third-party logistics services[140]. - The Group's third-party pharmaceutical logistics commissioning business saw a year-on-year increase of over 36% in the number of customers and over 72% in corresponding revenue as of December 31, 2023[143]. Market Trends and Strategies - The pharmaceutical distribution market in China is expected to exceed RMB 4 trillion by 2028, with a compound growth rate of 7%[33]. - The company aims to understand market pattern changes and explore industrial chain demands as key strategies for stable growth and high-quality development[23]. - The company plans to leverage competitive advantages in the non-bidding market and enhance digital transformation to drive high-quality development in 2024[24]. - The company aims to improve service quality and create new channels in the pharmaceutical distribution industry to generate long-term value for shareholders[24]. - The company is committed to leveraging digital technology to optimize supply chain logistics and improve last-mile service capabilities[150]. - The company plans to actively seek domestic and international industrial cooperation opportunities to promote high-quality development[156]. Financial Position - The total assets increased to RMB 3,247,656 in 2023 from RMB 2,866,465 in 2022, marking a growth of about 13.3%[28]. - Total liabilities rose to RMB 2,649,849 in 2023, compared to RMB 2,271,403 in 2022, which is an increase of approximately 16.6%[28]. - The gearing ratio increased to 44.28% as of December 31, 2023, compared to 42.75% in the previous year[163]. - Cash and bank deposits increased to RMB112.93 million as of December 31, 2023, from RMB68.86 million as of December 31, 2022[172]. - The Group's net current assets were RMB193.14 million as of December 31, 2023, compared to RMB206.77 million as of December 31, 2022, with a current ratio of 1.07[172]. Governance and Management - The Board resolved on May 31, 2023, to elect Mr. Yan Jingbin as the chairman, replacing Mr. Yao, improving the governance structure[59]. - The responsibilities of the chairman and the CEO are separated to ensure effective checks and balances in governance[72]. - The Company established a nomination committee on November 26, 2015, in accordance with the corporate governance code[72]. - The Company has adopted a Director nomination policy to ensure diversity and suitability of candidates for the Board[75]. - The Audit Committee held two meetings on March 31, 2023, and August 25, 2023, to review the Group's annual results for the year ended December 31, 2023, and interim results for the six months ended June 30, 2023[82]. Employee and Gender Diversity - The board consists of three female directors and six male directors, achieving gender diversity in compliance with the listing rules[106]. - As of December 31, 2023, the company had 451 male employees and 380 female employees, with a gender ratio of 54% male and 46% female[105]. - The company is committed to maintaining and enhancing gender diversity within its workforce[105]. Regulatory Environment - The implementation of the Specification for Logistics Service of Medicinal Product (GB/T 30335-2023) on September 7, 2023, aims to standardize logistics service operations and promote the digital and intelligent transformation of logistics in the pharmaceutical industry[36]. - The New Regulations for pharmaceutical storage and transportation came into effect on July 1, 2023, enhancing the regulatory framework for logistics enterprises[120][125]. - The National Medical Products Administration released a draft guidance in October 2023 to promote the standardization of newly established pharmaceutical wholesale enterprises and third-party logistics, indicating a significant restructuring in the traditional pharmaceutical supply chain[40].

Financial Performance - For the year ended December 31, 2023, the company's operating revenue was RMB 4,403.63 million, an increase of 5.47% compared to RMB 4,175.28 million in 2022[13]. - The company's net profit for 2023 was RMB 51.34 million, a decrease of 43.25% from RMB 90.47 million in 2022[13]. - The net profit attributable to the parent company's shareholders for 2023 was RMB 51.34 million, down 43.25% from RMB 90.47 million in 2022[13]. - The net profit attributable to the parent company's shareholders after deducting non-recurring gains and losses was RMB 50.04 million, an increase of 24.67% from RMB 40.14 million in 2022[13]. - The basic and diluted earnings per share for 2023 were RMB 0.4754, compared to RMB 0.8377 in 2022[13]. - Total operating revenue for 2023 reached RMB 4,403,633,478.08, an increase from RMB 4,175,279,039.20 in 2022, representing a growth of approximately 5.5%[35]. - The total profit for 2023 amounted to RMB 67,419,563.97, down from RMB 122,053,698.11 in the previous year, reflecting a decline of around 44.8%[35]. - The income tax expense for 2023 was RMB 16,074,838.28, significantly lower than RMB 31,581,741.59 in 2022, marking a reduction of approximately 49.1%[35]. - The company's financial expenses for 2023 totaled RMB 42,351,257.34, an increase from RMB 37,128,855.85 in 2022, representing a rise of about 14.9%[35]. - The company's main business revenue for the reporting period came from distributors and retail pharmacies, with 96% of the revenue derived from these customers[147]. Assets and Liabilities - As of December 31, 2023, the total liabilities amounted to RMB 2,649,849,020.30, compared to RMB 2,271,402,825.64 in 2022[16]. - The total equity attributable to the parent company's shareholders was RMB 597,806,856.30, slightly up from RMB 595,062,130.61 in 2022[16]. - The company's current liabilities included short-term borrowings of RMB 587,994,113.46, an increase from RMB 513,251,685.23 in 2022[7]. - The total current assets increased to RMB 2,811,999,921.54 from RMB 2,462,361,349.11, reflecting a growth of about 14.2%[doc id='37']. - The company's total assets reached RMB 3,247,655,876.60, up from RMB 2,866,464,956.25, indicating a growth of approximately 13.3%[doc id='37']. - The company's net current assets were RMB 193.14 million as of December 31, 2023, down from RMB 206.77 million as of December 31, 2022[153]. - The company's bank acceptance bills at year-end amounted to RMB 936.49 million, up from RMB 876.78 million, indicating a growth of 6.8%[91]. - The company had bank borrowings of RMB 587.99 million as of December 31, 2023, all at fixed interest rates[177]. - Restricted cash amounted to RMB 521.27 million as of December 31, 2023, serving as guarantees for bank acceptance bills and borrowings[187]. Dividends and Shareholder Returns - The board of directors proposed a final dividend of RMB 0.30 per share (tax included) for the year ended December 31, 2023[13]. - The company plans to distribute a final dividend of RMB 0.30 per share, down from RMB 0.45 per share in the previous year[56]. - The board proposed a final dividend of RMB 0.30 per share for the year ended December 31, 2023, subject to shareholder approval[161]. Market and Industry Insights - The pharmaceutical wholesale market in China is projected to exceed RMB 4 trillion by 2028, with a compound annual growth rate of 7%[70]. - The overall sales scale of the national pharmaceutical distribution market continues to grow steadily, with an increasing focus on high-quality development[71]. - The retail pharmacy market sales scale exceeded RMB 900 billion in 2023, with a year-on-year growth of 6.5%[96]. - The retail pharmacy market share increased to 29% in 2022, up by 2.1 percentage points compared to the previous year[96]. - By 2029, the outpatient market is projected to reach RMB 1.6 trillion, potentially surpassing the inpatient market, indicating significant growth opportunities[129]. Strategic Initiatives and Future Plans - The company is focusing on the digital transformation of the pharmaceutical distribution industry, driven by advancements in artificial intelligence and other technologies[97]. - Future strategies include deepening market penetration in Guangdong and surrounding areas, leveraging digital transformation, and expanding third-party logistics services[110][115]. - The company is actively seeking domestic and international industrial cooperation opportunities to promote high-quality development[116]. - The company aims to improve supply chain efficiency and reduce distribution costs through digitalization and business innovation[146]. - The company will actively explore smart logistics technology applications to enhance delivery service capabilities and optimize logistics network layout[145]. Operational Efficiency and Cost Management - Total operating costs for 2023 were RMB 4,332,543,936.81, compared to RMB 4,113,291,002.67 in 2022, indicating an increase of about 5.3%[35]. - The operating costs rose by 5.31% to RMB 4,110.89 million, consistent with the revenue growth[119]. - Sales expenses increased by 8.54% to RMB 122.47 million, primarily due to higher marketing personnel salaries and transportation costs[120]. - The management expenses decreased by 4.43% from RMB 49.74 million in the year ended December 31, 2022, to RMB 47.53 million in the year ended December 31, 2023[150]. Awards and Recognition - The company received multiple awards in 2023, including recognition as a top pharmaceutical logistics company for three consecutive years and the best pharmaceutical marketing team award[138]. Product and Service Development - The number of product categories decreased from 12,952 in 2022 to 12,212 in 2023, indicating a strategic consolidation of product lines[104]. - The company distributed 12,212 types of products as of December 31, 2023, with 1,146 suppliers, including 638 pharmaceutical manufacturers and 508 distribution suppliers, an increase of 5 suppliers from the previous year[133]. - The company has strengthened cooperation with well-known domestic and international manufacturers to optimize product structure and increase the variety of high-margin products[133]. Corporate Governance and Compliance - The company continues to focus on enhancing corporate governance standards to meet increasing regulatory requirements and shareholder expectations[192].

Company Performance - Operating revenue for the six months ended June 30, 2023, was RMB 2,269,074,000, representing a year-on-year increase of 20.24% compared to RMB 1,887,079,000 in 2022[46]. - Total profit for the same period was RMB 35,157,000, reflecting a year-on-year growth of 36.02% from RMB 25,848,000 in 2022[46]. - Net profit attributable to the shareholders of the parent company reached RMB 26,353,000, up 27.68% from RMB 20,639,000 in the previous year[46]. - Basic and diluted earnings per share increased to RMB 0.2440, a rise of 27.68% compared to RMB 0.1911 in 2022[46]. - Revenue from principal business reached RMB 2,241,971, up from RMB 1,868,014, reflecting a growth of 20% year-on-year[95]. - Retail pharmacy stores generated revenue of RMB 1,085,417, representing a 19.6% increase from RMB 907,672 in the previous year[95]. - The net profit increased by 27.68% to RMB 26.35 million, attributed to the growth in operating revenue and effective expense control[4]. Market Position and Recognition - The company ranked 6th among pharmaceutical distribution businesses in Guangdong Province in 2023[3]. - In the first half of 2023, the company was recognized as an Excellent Pharmaceutical Logistics and Delivery Enterprise for three consecutive years[3]. - The company was recognized as one of the Top 100 Chinese Pharmaceutical Commercial Enterprises in 2022-2023[5]. - The company received the 2022-2023 China Logistics Industry 'Golden Ant' Innovation Award for six consecutive years[5]. - The company has been awarded the Best Pharmaceutical Cold Chain Logistics Center for five consecutive years[4]. Financial Position - Total assets as of June 30, 2023, were RMB 2,833,166,000, a slight decrease of 1.14% from RMB 2,865,885,000 at the end of 2022[46]. - Total liabilities stood at RMB 2,260,351,000, down 0.49% from RMB 2,271,403,000 as of December 31, 2022[46]. - Equity of shareholders decreased to RMB 572,815,000, a decline of 3.64% from RMB 594,482,000 at the end of 2022[46]. - The current ratio as of June 30, 2023, was 1.08, slightly down from 1.09 as of December 31, 2022[5]. - The bank borrowings as of June 30, 2023, were RMB 585.12 million, all bearing fixed interest rates[5]. - The Group's gearing ratio increased to 46.22% as of June 30, 2023, compared to 42.78% as of December 31, 2022[165]. Distribution and Logistics - The company operates its own B2B e-commerce platform "Charmacy eMedicine" for online orders, inquiries, and payments[3]. - The company has four modern pharmaceutical logistics centers to support its distribution capabilities[3]. - The company has a highly efficient delivery mechanism, providing three deliveries per day within a 10-kilometer radius[3]. - The company has strengthened logistics capabilities with cold chain equipment and intelligent warehousing systems, significantly reducing logistics costs and ensuring pharmaceutical quality[70]. - The company aims to enhance customer adhesion by introducing high-margin quality products and optimizing product structure[65]. Industry Trends and Regulations - The pharmaceutical distribution industry in China is experiencing a transformation towards capability-based competition, driven by increasing market concentration and regulatory enhancements[48]. - The overall economic recovery in China is supported by government policies, with the GDP for the first half of 2023 reaching RMB 593,034 billion, growing by 5.5% year-on-year[48]. - The pharmaceutical distribution market in China is projected to exceed RMB 4 trillion by 2028, with a compound annual growth rate of 7%[54]. - The new regulations on pharmaceutical distribution in Guangdong aim to enhance the quality and efficiency of the pharmaceutical distribution industry[57]. - The off-hospital pharmaceutical market is expected to reach an aggregate volume of RMB 1.6 trillion by 2029, potentially equaling or exceeding the in-hospital market[58]. Strategic Initiatives - The company aims to enhance its market strategy by focusing on "Intensive Engagement in Guangdong Province and Extensive Coverage across Surrounding Areas" to become a competitive health service provider in China[74]. - The company plans to explore "Internet + Pharmaceuticals," digitalization, and AI collaboration to build a comprehensive technology system[83]. - The company is committed to expanding its distribution network and optimizing service quality in the grassroots medical market[82]. - The company will leverage its supply chain advantages and B2B e-commerce platform to enhance customer service and support in a competitive market[83]. - The company is focused on refining management practices to achieve high-quality growth and improve competitiveness[84].

Financial Performance - Total revenue for the six months ended June 30, 2023, was approximately RMB 2,269 million, an increase from RMB 1,887 million for the same period in 2022, representing a growth of about 20.2%[8] - The company reported a net profit attributable to shareholders of RMB 35.16 million for the six months ended June 30, 2023, with a basic and diluted earnings per share of RMB 0.2440[15] - The total profit for the same period was RMB 35,157,000, marking a 36.02% increase from RMB 25,848,000 in the previous year[32] - Net profit attributable to shareholders of the parent company reached RMB 26,353,000, up 27.68% from RMB 20,639,000 in the prior year[32] - Basic and diluted earnings per share were RMB 0.2440, an increase of 27.68% compared to RMB 0.1911 in the same period last year[32] - The total comprehensive income for the six months ended June 30, 2023, was RMB 26,352,545.15, an increase from RMB 20,639,327.13 in the same period of 2022, representing a growth of approximately 27.5%[43] Expenses and Costs - The company's total operating costs for the six months ended June 30, 2023, were RMB 2,231,021,432.51, compared to RMB 1,858,822,295.81 in the same period of 2022[34] - The total employee cost for the six months ended June 30, 2023, was RMB 43.84 million, an increase from RMB 36.87 million for the same period in 2022[175] - Sales expenses increased by 16.97% from RMB 53.81 million for the six months ended June 30, 2022, to RMB 62.94 million for the six months ended June 30, 2023[185] - Management expenses rose by 2.98% from RMB 18.40 million to RMB 18.95 million, primarily due to an increase in employee compensation of RMB 1.02 million[186] - Financial expenses decreased by 6.69% from RMB 19.06 million to RMB 17.79 million, mainly due to a reduction in long-term borrowings by RMB 102.66 million, leading to a decrease in interest expenses by RMB 3.01 million[186] Assets and Liabilities - Current liabilities totaled RMB 2,245,712,547.41 as of June 30, 2023, slightly down from RMB 2,255,587,796.61 at the end of 2022, reflecting a decrease of approximately 0.4%[56] - Cash and cash equivalents decreased to RMB 444,987,040.40 as of June 30, 2023, from RMB 492,673,555.44 at the end of 2022, a decline of about 9.7%[56] - Total assets increased by 0.02% to RMB 2,866,464,956.27 from RMB 2,865,885,144.04[28] - Non-current liabilities totaled 14,638,331.95, while total liabilities reached 2,260,350,879.36 as of December 31, 2022, compared to 15,815,029.03 and 2,271,402,825.64 respectively as of June 30, 2023[57] - The total value of assets with ownership or usage rights restrictions was RMB 1,035.70 million[194] Receivables and Bad Debts - The allowance for bad debts as of June 30, 2023, was RMB 14.04 million, down from RMB 18.72 million as of December 31, 2022, indicating a decrease of approximately 25.0%[5] - The total receivables as of June 30, 2023, amounted to RMB 4.01 million, with a bad debt provision ratio of 0.35%[17] - The company has no overdue receivables as of June 30, 2023, indicating effective credit management[6] - The allowance for bad debts increased to 21,024,212.39 as of June 30, 2023, compared to 20,570,905.33 as of December 31, 2022[80] - The total accounts receivable as of June 30, 2023, was 865,013,799.19, remaining stable compared to 865,013,450.04 as of December 31, 2022[79] Market and Industry Trends - The Chinese pharmaceutical circulation industry is experiencing a recovery, with a GDP growth of 5.5% in the first half of 2023, compared to the previous year[130] - The online and offline drug sales supervision regulations are expected to enhance the quality of drug distribution, with online pharmacy sales reaching RMB 260 billion in 2022, a 9.7% increase year-on-year[134] - The retail pharmacy market is expected to grow as the government increases regulation on in-hospital medication, promoting the development of the outpatient market[130] - The overall growth rate of the pharmaceutical circulation industry is projected to decline, with an estimated market size exceeding RMB 4 trillion by 2028[152] - The company is focusing on the growing outpatient market, which is expected to reach RMB 1.6 trillion by 2029, potentially surpassing the inpatient market[156] Strategic Initiatives - The company aims to strengthen cooperation with brand manufacturers to explore growth opportunities in non-tender market products[87] - The group is focusing on digitalization and AI collaboration to enhance its technical system and service offerings[86] - The company aims to enhance operational efficiency and optimize the product mix and customer service experience through digital transformation and innovation[166] - The company plans to explore smart logistics technology applications to improve delivery service capabilities and expand third-party logistics business[165] - The company aims to strengthen cooperation with well-known domestic and international manufacturers to enhance product variety and scale[136]

Compensation and Emoluments - The total emoluments for the five highest-paid individuals amounted to RMB675,691.32, an increase of 8.9% from RMB620,325.08 in the previous year[3]. - Major management's total emoluments reached RMB3,372,674.92, reflecting a 22.6% increase from RMB2,749,145.78 in the prior year[7]. - The Group's emoluments for social insurance, housing fund, and relevant pension costs totaled RMB229,653.14, an increase from RMB182,190.86 in the previous year[3]. Financial Performance - Revenue from pharmaceutical sales for the year was $1,560,606,376.74, up from $1,502,291,335.20 in the previous year, representing a growth of approximately 3.6%[69]. - The total operating revenue for the year was $1,645,219,775.53, compared to $1,576,479,571.62 in the previous year, indicating an increase of about 4.4%[69]. - The company reported gains from the disposal of non-current assets amounting to $65,839,056.46 for the year[73]. - The net profit attributable to the equity shareholders of the parent company for the reporting period was approximately 50.34 million, with a weighted average return on net assets of 16.45%[117]. - The basic earnings per share for the reporting period was 0.8369, and the diluted earnings per share was also 0.8369[117]. - The company’s net profit excluding non-recurring profit and loss was approximately 7.29 million, with a corresponding basic and diluted earnings per share of 0.3708[117]. Accounts Receivable and Bad Debts - Trade receivables at the end of the year were RMB300,333,159.81, a slight decrease from RMB304,238,736.86 at the beginning of the year, indicating a reduction of 1.5%[16]. - The provision for bad debts decreased to RMB3,240,447.62 from RMB5,529,013.97, marking a reduction of 41.5%[16]. - The bad debt provision for trade receivables made on an individual basis was RMB1,115,185.55, accounting for 0.37% of the total book balance[20]. - The collective bad debt provision amounted to RMB2,125,262.07, which is 0.71% of the collective book balance of RMB299,217,974.26[21]. - The total bad debt provision at the end of the year was RMB3,240,447.62, reflecting a significant increase from the previous year's provision[24]. Shareholding and Corporate Governance - Public shareholding accounted for 21.62% of the total issued share capital, which is below the minimum requirement of 25%[13]. - The controlling shareholder, Mr. Yao Chuanglong, confirmed compliance with the non-competition deed for the year ended December 31, 2022[34]. - The independent non-executive Directors reviewed compliance status and confirmed that the controlling shareholder adhered to the non-competition deed[34]. - The independent non-executive directors confirmed that the terms of continuing connected transactions are fair and reasonable, aligning with the overall interests of the shareholders[51]. Assets and Liabilities - Total current assets increased to RMB2,462,361,349.11 as of December 31, 2022, up from RMB2,238,222,282.83 in 2021, representing a growth of approximately 10%[154]. - Total non-current assets decreased to RMB403,523,794.93 in 2022 from RMB524,869,239.03 in 2021, reflecting a decline of approximately 23%[156]. - Total liabilities amounted to RMB2,271,402,825.64 as of December 31, 2022, slightly up from RMB2,258,989,542.23 in 2021, showing a marginal increase of about 0.6%[158]. - Total shareholders' equity attributable to the shareholders of the parent company increased to RMB594,482,318.40 in 2022, compared to RMB504,101,979.63 in 2021, marking a growth of approximately 18%[159]. Cash Flow and Financing Activities - Cash flow from operating activities totaled RMB3,696,584,127.65 in 2022, up from RMB3,282,927,789.69 in 2021, indicating a growth of 12.63%[189]. - The company reported a net cash flow from operating activities of RMB44,050,304.46 in 2022, a turnaround from a negative cash flow of RMB-19,543,392.21 in 2021[189]. - Cash received from borrowings in financing activities decreased to RMB825,887,076.38 in 2022 from RMB957,970,978.42 in 2021, a decline of 13.8%[191]. - Net cash flow from financing activities turned negative at RMB-191,211,558.73 in 2022, compared to a positive RMB74,400,884.77 in 2021[191]. Internal Control and Audit - The Board of Supervisors has conducted a review and found that the company has established an appropriate internal control system that operates effectively[126]. - The company’s connected transactions in 2022 have been filed, audited, announced, and approved by independent shareholders in accordance with the Listing Rules[125]. - The audit opinion does not cover other information and does not express any form of assurance conclusion on it[145]. - The overall presentation, structure, and content of the financial statements must be evaluated to ensure fair representation of underlying transactions[148]. Inventory Management - The balance of inventories as of December 31, 2022, was RMB590.002 million, with a provision for impairment of inventories amounting to RMB3.1483 million, leading to a carrying amount of RMB586.8537 million[139]. - The company made full provisions for inventories that would expire within 180 days and remained unsold prior to the reporting date[139]. - The management's internal controls regarding the validity period and stock-in time of inventories were tested in the SAP system[139].