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].

Financial Performance - In 2022, the company's operating revenue was RMB 4,175.28 million, an increase of 10.06% compared to RMB 3,793.62 million in 2021[8]. - The net profit for 2022 was RMB 90.38 million, a significant increase of 290.36% from RMB 23.15 million in 2021[8]. - The basic and diluted earnings per share for 2022 were RMB 0.8369, compared to RMB 0.2144 in 2021[8]. - The total operating costs for 2022 were RMB 4,113.29 million, up from RMB 3,759.19 million in 2021[10]. - The total comprehensive income for the year ended December 31, 2022, was RMB 90,380,338.77, a significant increase from RMB 23,153,060.07 in 2021, representing a growth of approximately 289.5%[18]. - The gross profit increased by 14.56% to RMB 271.76 million for the year ended December 31, 2022, up from RMB 237.22 million for the previous year, with a gross margin rising from 6.25% to 6.51%[157]. - The total consolidated profit for the year amounted to RMB 122,053,698.11, with income tax expenses of RMB 31,673,359.34[72]. Assets and Liabilities - The total assets as of December 31, 2022, amounted to RMB 2,865.89 million, compared to RMB 2,763.09 million at the end of 2021[12]. - The total liabilities as of December 31, 2022, were RMB 2,271.40 million, slightly up from RMB 2,258.99 million in 2021[13]. - The company's total equity attributable to shareholders increased to RMB 594.48 million from RMB 504.10 million in 2021[13]. - The accounts receivable balance at year-end was RMB 865.01 million, up from RMB 745.19 million at the beginning of the year, reflecting a significant increase[40]. - The accounts payable increased to RMB 632,791,945.43 at the end of 2022, compared to RMB 532,860,284.07 at the beginning of the year, marking an increase of about 18.7%[31]. - The company's accounts payable as of December 31, 2022, included bank acceptance bills totaling RMB 876,775,586.87, an increase from RMB 809,768,308.81 at the beginning of the year[75]. Cash Flow and Dividends - The cash and cash equivalents decreased to RMB 492.67 million from RMB 630.17 million in 2021[12]. - The company proposed a final dividend of RMB 0.45 per share for the year ended December 31, 2022[8]. - The company plans to distribute a final dividend of RMB 0.45 per share for the year ended December 31, 2022, pending shareholder approval[74]. Operational Efficiency and Strategy - The company’s strategic focus on enhancing operational efficiency and competitive strength is expected to drive high-quality development in the future[24]. - The company aims to enhance customer loyalty by optimizing product structure and introducing high-margin quality products[55]. - The company is focusing on digital transformation and business innovation to improve supply chain efficiency and customer service experience[110]. - The company is exploring the feasibility of "Internet + Medicine" to enhance service capabilities and improve supply chain product flow[124]. - The company aims to expand its distribution network in Guangdong and surrounding areas, enhancing coverage for retail pharmacies and healthcare service institutions[107]. Market Trends and Industry Insights - In 2022, China's pharmaceutical distribution market sales reached RMB 866.7 billion, showing a year-on-year growth of 3.3%[34]. - The pharmaceutical wholesale market sales in 2021 were RMB 206.15 billion, with a year-on-year increase of 8.5%, marking a 6.1 percentage point rise in growth rate[34]. - By 2025, the goal is to cultivate 1-3 large digital and comprehensive pharmaceutical distribution companies with revenues exceeding RMB 500 billion, and 5-10 companies with revenues exceeding RMB 100 billion[35]. - The top 100 pharmaceutical distribution companies accounted for 98% of the national pharmaceutical market size in 2025, indicating a trend towards increased market concentration[35]. - The outpatient market is projected to reach RMB 1.6 trillion by 2029, potentially matching or exceeding the inpatient market[46]. Regulatory and Compliance - The implementation of new quality management standards for drug retail distribution starting January 1, 2023, aims to enhance quality control and traceability in the distribution process[38]. - The implementation of the "Regulations on the Supervision and Management of Online Drug Sales" began on December 1, 2022, allowing prescription drugs to be sold online[47]. - The Guangdong Provincial Drug Administration initiated a pilot program for large chain convenience stores to sell Class B non-prescription drugs starting in March 2022[50]. - The "Healthy China" initiative emphasizes comprehensive health services throughout the life cycle, promoting the integration of prevention, treatment, rehabilitation, and health management[52]. Human Resources and Compensation - The company reported a significant increase in employee compensation payable, which rose to RMB 13,346,444.66 from RMB 5,180,138.03 in the previous year, an increase of approximately 157.5%[20]. - The total employee cost, including directors' remuneration, was RMB 839.2 million, an increase of 11.91% from RMB 749.9 million in the previous year[165]. Logistics and Supply Chain - The company has actively expanded third-party logistics to enhance profitability and operational efficiency[42]. - The company plans to enhance its pharmaceutical logistics capabilities and actively expand third-party logistics services[153]. - The company's logistics network and information systems are designed to meet the growing demand for storage and logistics in the pharmaceutical distribution business[57]. Corporate Governance - The company has complied with the corporate governance code as per the listing rules, with exceptions noted regarding the standards for securities trading by directors and supervisors[184]. - The audit committee, along with the management and external auditors, reviewed the accounting principles and policies adopted by the group for the year ended December 31, 2022[187].

Company Performance - Operating revenue for the first half of 2022 was RMB 1,887,079, a decrease of 5.32% compared to RMB 1,993,014 in the same period of 2021[23]. - Total profit for the first half of 2022 was RMB 25,848, down 25.14% from RMB 34,530 in the first half of 2021[23]. - Net profit attributable to the shareholders of the parent company was RMB 20,639, reflecting a decline of 20.50% from RMB 25,961 in the same period of 2021[23]. - Basic and diluted earnings per share decreased to RMB 0.1911, down 20.50% from RMB 0.2404 in the first half of 2021[23]. - Operating revenue decreased by 5.32% to RMB 1,887.08 million for the six months ended June 30, 2022, compared to RMB 1,993.01 million for the same period in 2021[79]. - Revenue from principal business was RMB 1,868.01 million for the six months ended June 30, 2022, down from RMB 1,978.11 million in the same period of 2021[76]. - Gross profit decreased by 7.90% to RMB 124.37 million for the six months ended June 30, 2022, with a gross profit margin of 6.59%, down from 6.78% in the previous year[79]. - The Group's net profit decreased by 20.50% to RMB 20.64 million for the six months ended 30 June 2022 from RMB 25.96 million for the same period in 2021[87]. Financial Position - Total assets as of June 30, 2022, were RMB 2,646,289, a decrease of 4.23% from RMB 2,763,092 as of December 31, 2021[23]. - Total liabilities decreased by 6.08% to RMB 2,121,548 as of June 30, 2022, compared to RMB 2,258,990 as of December 31, 2021[23]. - Equity of shareholders increased by 4.09% to RMB 524,741 as of June 30, 2022, from RMB 504,102 as of December 31, 2021[23]. - As of June 30, 2022, the Group's cash and bank deposits amounted to RMB 67.98 million, down from RMB 144.23 million as of 31 December 2021[88]. - The Group recorded net current assets of RMB 98.68 million as of June 30, 2022, compared to RMB 79.30 million as of December 31, 2021[89]. - The current ratio was 1.05 as of June 30, 2022, slightly up from 1.04 as of December 31, 2021[89]. - Total current assets decreased to $2,137,774,795.80 from $2,238,222,282.83, a decline of approximately 4.5% year-over-year[164]. - Total liabilities decreased to $2,121,547,788.98 from $2,258,989,542.23, a reduction of approximately 6.1% year-over-year[166]. - Total shareholders' equity attributable to the shareholders of the parent company increased to $524,741,306.76 from $504,101,979.63, representing a growth of about 4.3%[169]. Market Trends and Industry Insights - The pharmaceutical distribution industry is expected to see the top 100 wholesale enterprises account for over 98% of the total market by 2025, indicating a trend towards market concentration[28]. - The government is promoting high-quality development in the pharmaceutical industry, with a focus on innovation and technology empowerment[28]. - The overall drug regulatory capability is projected to approach international advanced levels by the end of the "14th Five-Year Plan" period[28]. - The establishment of electronic prescription centers in Shenzhen and Hainan is expected to significantly influence the flow of prescription drugs in the regional market[35]. - The separation of prescribing and dispensing is becoming a general trend, driven by policies such as zero-markup drug policy and dual channels[35]. - The pharmaceutical retail chain industry in Guangdong is undergoing accelerated development, with support for independent pharmacies to join chain enterprises[39]. - The deepening of medical reform is expected to bring considerable increases in drug orders and overall growth in the pharmaceutical retail industry[35]. - By 2025, the annual sales of the top 100 pharmaceutical retail enterprises are expected to account for over 65% of the total pharmaceutical retail market, with a target retail chain rate approaching 70%[42]. Operational Efficiency and Logistics - The company has established logistics centers in Shantou, Foshan, Zhuhai, Guangzhou, and Huizhou, implementing an efficient delivery mechanism[8]. - The company has a modern information system covering the entire pharmaceutical distribution supply chain, including procurement, sales, warehousing, transportation, and delivery[8]. - The company has a professional transportation team that ensures timely deliveries within specified distances[8]. - The logistics network includes a core warehouse in Guangzhou, enabling multi-warehouse collaboration and improved inventory and distribution efficiency[57]. - The company has actively expanded third-party logistics services, generating additional revenue and enhancing profitability[59]. - The company aims to improve pharmaceutical supply chain operational efficiency and replicate mature non-tendering market operation models[72]. - The company will explore smart logistics technology applications to enhance delivery service capabilities and overall operational capacity[72]. - The pharmaceutical distribution industry is undergoing digital transformation, focusing on intelligent and automated logistics technology[48]. Corporate Governance and Compliance - The company has complied with the corporate governance code provisions as of June 30, 2022, with a noted deviation regarding the separation of roles between the chairman and CEO[126]. - The company will continue to review its corporate governance practices to enhance standards and comply with regulatory requirements[132]. - All directors and supervisors confirmed compliance with the Model Code for Securities Transactions for the six months ended June 30, 2022[133]. - The company aims to meet the rising expectations of shareholders and investors through enhanced corporate governance standards[132]. - The audit committee has reviewed the unaudited interim condensed consolidated financial statements for the six months ended June 30, 2022[156]. - The interim report for the six months ended June 30, 2022, has been prepared in accordance with applicable accounting standards and appropriate disclosures have been made[156]. Strategic Initiatives and Future Plans - The company has strengthened cooperation with well-known domestic and overseas manufacturers to enhance product variety and scale[53]. - The company plans to enhance risk management and improve business quality to seize opportunities in the expanding primary medical market[64]. - The Group intends to standardize, streamline, and digitize pharmaceutical delivery services to improve service capabilities and achieve low-cost, high-efficiency operations[68]. - The company will actively explore the feasibility of "Internet + Healthcare" and enhance services through e-commerce platforms[68]. - The Group will focus on diversifying its product portfolio and enhancing customer service experience to strengthen its market position[71].

Company Performance - Charmacy Pharmaceutical ranked 7th among pharmaceutical distribution businesses in Guangdong Province and 2nd among private enterprises in terms of sales scale[3]. - In 2020, the company was among the top 40 in revenue among the top 100 PRC wholesalers[3]. - In 2021, the Group's operating revenue decreased by 4.96% to RMB3,793.62 million from RMB3,991.71 million in 2020[19]. - The gross profit decreased by 1.33% to RMB237.22 million, while the gross profit margin increased by 0.23 percentage points to 6.25%[19]. - Net profit attributable to shareholders of the parent company decreased by 42.91% to RMB23.15 million from RMB40.56 million in 2020[19]. - The basic and diluted earnings per share decreased to RMB0.21 in 2021 from RMB0.38 in 2020[33]. - The company reported a significant increase in revenue, achieving a total of $1.2 billion for the fiscal year, representing a 15% year-over-year growth[161]. - The company reported a significant increase in revenue, achieving a total of $1.5 billion, representing a 20% year-over-year growth[170]. Logistics and Distribution - The company operates a highly efficient delivery mechanism, providing three deliveries per day within a 10 km radius and one delivery per day within a 250 km radius[3]. - Charmacy Pharmaceutical has established logistics centers in key cities including Shantou, Foshan, Zhuhai, Guangzhou, and Huizhou[3]. - The Group's modern information system, centered on SAP, enhances integrated and intelligent management across the entire pharmaceutical distribution chain[17]. - The Group's logistics capabilities have been enhanced, covering Guangdong and expanding to Fujian, Guangxi, and Hainan[17]. - The company aims to enhance its logistics services for upstream suppliers and downstream customers, focusing on high-quality development led by the Guangzhou Centre[88]. - The company plans to optimize its delivery service networks in cities and towns, transitioning from horizontal expansion to vertical integration[91]. Market Strategy and Expansion - The Company focuses on the non-bidding markets, primarily distributing to pharmacies, outpatient clinics, and private hospitals[15]. - The Company aims to leverage its leading position in the Guangdong market to expand its third-party pharmaceutical logistics business[17]. - The company plans to focus on non-bidding markets and strengthen risk management to improve business quality[21]. - The pharmaceutical retail network will be expanded to cover Guangdong Province and surrounding regions[21]. - The company aims to enhance customer adhesion by optimizing the product mix and introducing high-margin products[75]. - Market expansion plans include entering two new regions, which are projected to increase market share by 5%[155]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of $30 million allocated for potential mergers[154]. - The company is considering strategic acquisitions to enhance its product offerings, with a budget of $100 million allocated for potential mergers and acquisitions[161]. Financial Health - Total assets as of December 31, 2021, were RMB2,763.09 million, a slight decrease from RMB2,799.40 million in 2020[33]. - Total liabilities decreased to RMB2,258.99 million in 2021 from RMB2,296.85 million in 2020[33]. - The Group's gearing ratio was 56.03%, an increase from 53.25% as of December 31, 2020[129][130]. - Cash and bank deposits increased from RMB113.77 million as at 31 December 2020 to RMB144.23 million as at 31 December 2021[112]. - The total number of employees as of December 31, 2021, was 837, a decrease of 66 employees compared to the previous year[133]. Corporate Governance - The company acknowledges the importance of its Board in providing effective leadership and ensuring transparency and accountability in operations[184]. - The company has been complying with the Corporate Governance Code for the year ended December 31, 2021, with some deviations noted[184]. - The roles of chairman and chief executive officer are currently held by Mr. Yao Chuanglong, who has considerable experience in the pharmaceutical distribution industry[184]. - The Company has adopted the Model Code for Securities Transactions by Directors, confirming compliance by all Directors and Supervisors for the year ended 31 December 2021[189]. - The Company convened four Board meetings during the year ended 31 December 2021, with all Directors attending all meetings[198]. Industry Trends and Outlook - The pharmaceutical circulation industry in China is transitioning from resource competition to capacity competition, driven by the booming internet healthcare sector[39]. - The introduction of favorable policies and advanced technologies like AI and big data is expected to empower downstream pharmaceutical retailers, enhancing their market expansion capabilities[39]. - The implementation of the "Healthy China" strategy is expected to accelerate the growth of the pharmaceutical market[89]. - The pharmaceutical distribution industry is expected to see new development opportunities due to the establishment of a dual circulation development pattern in China[89]. - The company provided a positive outlook for the next fiscal year, projecting a revenue increase of 10% to 12%[154].

Financial Performance - Operating revenue for the six months ended June 30, 2021, was RMB 1,993,014,000, representing a 7.11% increase compared to RMB 1,860,759,000 in the same period of 2020[7]. - Total profit decreased by 17.28% to RMB 34,530,000 from RMB 41,746,000 year-over-year[7]. - Net profit attributable to the shareholders of the parent company was RMB 25,961,000, down 15.91% from RMB 30,873,000 in the previous year[7]. - Basic and diluted earnings per share decreased to RMB 0.2404 from RMB 0.2859, reflecting a decline of 15.91%[7]. - The Group's net profit decreased by 15.91% to RMB 25.96 million for the six months ended June 30, 2021, compared to RMB 30.87 million for the same period in 2020[63]. - The total profit for the six months ended June 30, 2021, was RMB 25,961,380.05, reflecting the impact of increased operating costs[127]. - The company experienced a decrease in net profit from continuing operations, indicating challenges in maintaining profitability[127]. - The net cash flow from operating activities for the six months ended June 30, 2021, was RMB 21,685,367.72, compared to RMB 27,633,600.47 for the same period in 2020, indicating a decrease of about 21.5%[136]. - The company reported a net loss of RMB 109,802,273.64 for the six months ended June 30, 2021, compared to a net loss of RMB 219,680,778.71 in the same period of 2020, showing an improvement of about 50%[136]. Assets and Liabilities - Total assets as of June 30, 2021, were RMB 2,753,721,000, a decrease of 1.63% from RMB 2,799,403,000 at the end of 2020[7]. - Total liabilities decreased by 2.18% to RMB 2,246,810,000 from RMB 2,296,854,000[7]. - Total current assets amounted to RMB 2,221,488,936.11, a decrease from RMB 2,251,308,778.83 as of December 31, 2020, reflecting a decline of approximately 1.32%[123]. - Total non-current assets were reported at RMB 532,231,713.24, down from RMB 548,093,913.36, indicating a decrease of about 2.89%[123]. - Total current liabilities reached RMB 2,129,536,505.65, slightly down from RMB 2,161,993,775.16, showing a decrease of around 1.49%[125]. - Total liabilities amounted to RMB 2,246,810,349.74, a decrease from RMB 2,296,853,772.63, reflecting a decline of about 2.18%[125]. - The Group recorded net current assets of RMB 91.95 million as of June 30, 2021, compared to RMB 89.32 million as of December 31, 2020[63]. - The Group's gearing ratio as of June 30, 2021, was 55.71%, compared to 53.25% as of December 31, 2020[71]. Market and Industry Trends - The pharmaceutical distribution industry is undergoing rapid transformation driven by policies such as the Two-Invoice System and national centralized procurement, leading to increased importance of distribution services[22]. - The centralization of medicine procurement has resulted in reduced drug prices, compressing profit margins across the pharmaceutical value chain[22]. - The role of distributors focusing on public hospital businesses is shifting from "distribution" to "delivery," necessitating a transformation in business models[22]. - The advancement of the tiered diagnosis and treatment system is accelerating the expansion of the retail market share, particularly in county areas[22]. - The market concentration in the pharmaceutical distribution industry is increasing due to mergers and acquisitions among national and regional wholesalers[18]. - The introduction of a dual-channel management mechanism for negotiated drugs is diversifying the supply guarantee and further liberalizing the pharmaceutical distribution market[19]. - The gradual relaxation of Internet healthcare policies is expected to promote the expansion of the non-bidding market and the transformation of the pharmaceutical distribution industry[28]. - The implementation of the Two-Invoice System Regulation and centralized procurement is leading to increased costs and decreased profits for distribution enterprises, while also creating opportunities for third-party logistics services[44]. Strategic Initiatives - The company is focusing on strategic development and market expansion initiatives to enhance future performance[11]. - Ongoing research and development efforts are aimed at introducing new products and technologies to strengthen market position[11]. - The company aims to provide a full range of whole cycle health services as part of the "Healthy China" initiative, aligning with national strategic goals[30]. - The company is focused on expanding retail end-customer business while strengthening cooperation with well-known domestic and overseas manufacturers[34]. - The company plans to enhance its service capabilities to achieve low-cost and high-efficiency operational results through standardized and intelligent pharmaceutical distribution services[49]. - The company will actively explore the feasibility of "Internet + Healthcare" as part of its strategy to expand in the primary medical market[46]. - The company is exploring potential mergers and acquisitions to enhance its market position and operational capabilities[130]. Operational Efficiency - The company aims to optimize its pharmaceutical product portfolio and customer service experience to reduce distribution costs and improve operational efficiency[58]. - The company aims to enhance its logistics capabilities and expand third-party pharmaceutical logistics services to improve market competitiveness and profitability[58]. - The company has introduced advanced logistics solutions such as AS/RS, WCS, and PTL, enhancing integrated and intelligent management of logistics[40]. - The company continues to optimize product structure by introducing high-quality products with high profit margins[34]. Governance and Compliance - The company has complied with the Corporate Governance Code provisions for the six months ended June 30, 2021, except for the deviation regarding the separation of roles between the chairman and CEO[88]. - The Audit Committee has reviewed the unaudited interim condensed consolidated financial statements for the six months ended June 30, 2021, and believes they are prepared in accordance with applicable accounting standards[119]. - The company is committed to improving its financial reporting procedures and internal controls as recommended by the Audit Committee[119]. - All directors and supervisors have complied with the Model Code for Securities Transactions during the reporting period[90].

Financial Performance - The company reported a consolidated revenue of HKD 1.2 billion for the year ended December 31, 2020, representing a year-on-year increase of 15%[9] - The company's operating revenue increased by 14.28% from RMB 3,492.78 million in 2019 to RMB 3,991.71 million in 2020[11] - The company's operating revenue for 2020 was RMB 3,991.71 million, representing a 14.28% increase from the previous year, while net profit rose to RMB 40.56 million, a slight increase of RMB 0.40 million[34] - Net profit attributable to shareholders increased by 1.00% from RMB 40.15 million in 2019 to RMB 40.56 million in 2020[11] - Total assets grew to RMB 2,799.40 million in 2020 from RMB 2,503.81 million in 2019, representing an increase of 11.83%[17] - Total liabilities increased to RMB 2,296.85 million in 2020 from RMB 2,020.22 million in 2019, reflecting a rise of 13.68%[17] - The gross profit margin improved to 18% from 16% in the previous year, indicating better cost management and pricing strategies[9] - Gross profit rose by 7.48% from RMB 223.67 million in 2019 to RMB 240.40 million in 2020, while the gross margin decreased from 6.40% to 6.02%[11] - The gross profit margin for 2020 was 6.02%, a decrease of 0.38 percentage points from the previous year, while the total expense ratio decreased to 4.11%[34] Market Expansion and Strategy - The company aims to achieve a revenue growth target of 10% for the upcoming fiscal year, driven by market expansion and new product offerings[9] - The company plans to invest in new technology for supply chain management to further enhance operational efficiency and customer service[9] - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its product portfolio[9] - The company aims to enhance customer loyalty by increasing the variety and scale of first-level distribution products, with 1,142 suppliers as of December 31, 2020, an increase of 52 from the previous year[32] - The company plans to leverage opportunities in the non-tender market, driven by recent healthcare reforms and increased demand for pharmaceutical products[14] - The company aims to continue expanding its pharmaceutical retail network in Guangdong and surrounding areas, focusing on regional distribution centers to enhance sales and service capabilities[42] - The company is considering strategic acquisitions to bolster its product portfolio, with a budget of $300 million earmarked for potential deals[89] - Market expansion plans include entering three new international markets by the end of the fiscal year, targeting a 10% increase in global market share[89] Technology and Innovation - The company expanded its logistics network, establishing five logistics centers in key cities, enhancing delivery efficiency with a distribution mechanism of three deliveries per day within a 10 km radius[4] - The integration of cloud computing, big data, and IoT technologies in pharmaceutical logistics is enhancing supply chain efficiency[28] - The company plans to leverage the "Internet + Medical" model to enhance e-commerce platform functionalities and improve user transaction experiences[42] - The company is investing in new technology development, allocating $50 million towards R&D initiatives aimed at enhancing product efficacy[89] Governance and Compliance - The company has adopted the standard code of conduct for securities trading for its directors and supervisors, confirming compliance for the year ending December 31, 2020[97] - The company has adhered to the corporate governance code as per the listing rules, with noted deviations regarding the separation of the roles of chairman and CEO[96] - The board of directors is responsible for the management of information disclosure, ensuring compliance with regulatory requirements[158] - The company has established internal controls to manage insider information and prevent insider trading[148] - The company has established a rigorous internal management system to ensure compliance with legal and regulatory requirements in both mainland China and Hong Kong[179] Customer Engagement and Sales - The B2B e-commerce platform "CH'MEI e-Pharmacy" was launched, facilitating online ordering and payment for customers, contributing to a 20% increase in online sales[4] - The active trading customer count on the B2B e-commerce platform reached 7,787, an increase of 1,538 from the previous year, generating revenue of approximately RMB 254.45 million, up RMB 14.97 million year-on-year[33] - User data showed an increase in active users, reaching 5 million, which is a 20% increase compared to the previous quarter[89] - A new marketing strategy has been implemented, focusing on digital channels, which is projected to increase customer engagement by 30%[89] Awards and Recognition - The company received multiple awards for its service quality, including the "Best Logistics Center" in the pharmaceutical supply chain for 2019-2020[4] - The company has been recognized as a "Demonstration Enterprise of Integrity" in Guangdong for nine consecutive years, highlighting its reputation and service quality[10] Financial Management - The company maintained a strong credit rating, being recognized as a "Contract-abiding and Trustworthy Enterprise" for 19 consecutive years[4] - The company held cash and bank deposits of RMB 113.77 million as of December 31, 2020, compared to RMB 40.15 million in 2019[56] - The company's capital debt ratio as of December 31, 2020, was 53.25%, down from 55.99% as of December 31, 2019[63] - The company maintained a prudent financial management strategy, ensuring a healthy liquidity position throughout the review period[60] Risk Management - The risk management committee reviewed the company's risk management strategies and internal control systems during its meeting on March 30, 2020[130] - The internal control and risk management system is designed to manage risks rather than eliminate them, providing reasonable assurance against significant errors or fraud[141] - The risk management framework includes five basic processes: risk identification, analysis, response, monitoring, and reporting, with regular assessments conducted[146] Shareholder Information - The company proposed a final dividend of RMB 0.20 per share (before tax) for the year ended December 31, 2020, subject to shareholder approval at the annual general meeting on May 31, 2021[161] - The company reported a total distributable reserve of approximately RMB 1.1556 billion as of December 31, 2020[163] - The company had a total of 59,000,000 shares of domestic stock held by Mr. Yao Chuanglong, representing approximately 73.75% of the relevant class of shares and 54.63% of the total issued share capital[198]

Financial Performance - For the six months ended June 30, 2020, the company's revenue was RMB 1,860,759 thousand, representing an increase of 8.94% compared to RMB 1,708,088 thousand in 2019[3] - The total profit for the same period was RMB 41,746 thousand, a decrease of 27.55% from RMB 57,618 thousand in 2019[3] - Net profit attributable to shareholders was RMB 30,873 thousand, down 27.02% from RMB 42,305 thousand in 2019[3] - Basic and diluted earnings per share were RMB 0.2859, a decline of 27.02% compared to RMB 0.3917 in 2019[3] - The main business revenue was RMB 1,847.73 million, with over 97% coming from distributor customers and retail pharmacies[33] - Operating costs increased by 10.63% to RMB 1,738.49 million, which was higher than the revenue growth rate[35] - Gross profit decreased by 10.56% to RMB 122.27 million, resulting in a gross margin decline from 8.00% to 6.57% due to rising prices of epidemic prevention products[35] - Net profit fell by 27.02% to RMB 30.87 million, primarily due to the cost increase of related drugs and materials outpacing revenue growth[43] Assets and Liabilities - Total assets as of June 30, 2020, were RMB 2,395,309 thousand, a decrease of 4.33% from RMB 2,503,808 thousand at the end of 2019[5] - Total liabilities decreased by 5.83% to RMB 1,902,443 thousand from RMB 2,020,215 thousand[5] - Shareholders' equity increased by 1.92% to RMB 492,866 thousand from RMB 483,593 thousand[5] - The company's net current assets were RMB 1,547.2 million as of June 30, 2020, compared to RMB 1,404.4 million as of December 31, 2019[44] - The current ratio as of June 30, 2020, was 1.09, slightly up from 1.07 in 2019[44] - Accounts receivable and notes receivable amounted to RMB 723.75 million as of June 30, 2020, a decrease of RMB 10.77 million from December 31, 2019, due to improved credit management[45] - Accounts payable and notes payable were RMB 1,040.49 million as of June 30, 2020, down by RMB 238.03 million from December 31, 2019, primarily due to pandemic-related low-interest loans[46] - The company's debt-to-capital ratio increased to 58.62% as of June 30, 2020, from 55.99% as of December 31, 2019[51] Cash Flow and Financing - As of June 30, 2020, the company held cash and bank deposits of RMB 611.5 million, an increase from RMB 401.5 million as of December 31, 2019[44] - Cash flow from financing activities generated a net inflow of RMB 269,278,365.05 for the first half of 2020, compared to RMB 16,244,456.97 in the same period of 2019, showing a substantial improvement[132] - The company reported cash and cash equivalents at the end of June 2020 amounting to RMB 61,154,914.63, up from RMB 34,878,183.14 at the end of June 2019, indicating a year-over-year increase of approximately 75.5%[132] - The company received cash from borrowings amounting to RMB 549,942,806.37, significantly higher than RMB 232,000,000.00 in the previous year, indicating a growth of approximately 136.0%[123] Market and Sales Performance - The retail pharmacy terminal sales growth rate was 7.1%, with a market share of 23.40%, up 0.5 percentage points from 2018[13] - The public grassroots medical terminal sales growth rate was 8.2%, with a market share of 10.00%, up 0.3 percentage points from 2018[13] - The company is focusing on expanding its presence in the pharmaceutical retail market due to changes in the drug procurement landscape and regulatory environment[14] - The e-commerce platform generated approximately RMB 144.35 million in revenue for the six months ended June 30, 2020, an increase of RMB 7.5 million year-over-year[21] - During the reporting period, the company supplied approximately 17.5 million boxes of antiviral products and related preventive medicines to the Guangdong retail market[23] Operational Changes and Strategy - The company is transitioning its business model from distribution to logistics, focusing on third-party logistics services to meet market demands[23] - The company has actively promoted online sales through its self-operated B2B e-commerce platform, enhancing user experience across various digital channels[21] - The company aims to enhance customer engagement by optimizing product structure and introducing high-margin quality products[19] - The newly launched Guangzhou pharmaceutical sorting and distribution center has a storage capacity of approximately 300,000 items, supporting a sales scale of nearly RMB 6 billion[25] Shareholder Information - As of June 30, 2020, the company had a total of 80,000,000 issued domestic shares, with 59,000,000 shares (73.75%) held by Mr. Yao Chuanglong, the beneficial owner[68][75] - Major shareholders include Guangzhou Pharmaceutical Group Co., Ltd. with 7,906,500 H shares (28.24%) and other significant stakeholders like Jinhuo Pharmaceutical Health Management Co., Ltd. with 2,302,000 H shares (8.22%)[75][79] - The company did not recommend any interim dividend for the six months ended June 30, 2020, compared to no interim dividend in 2019[61] Financial Management and Reporting - The company maintained a prudent financial management strategy throughout the review period, ensuring a healthy liquidity position[48] - The financial statements are prepared based on the assumption of going concern, with no significant doubts about the company's ability to continue operations for the next 12 months[157] - The group uses Renminbi as its accounting currency[162] - The company adheres to the accounting standards set by the Ministry of Finance, ensuring that the financial statements accurately reflect the financial position and operating results[159]