Financial Performance - The company's total revenue for the year increased by 3.9% to RMB 2,912.7 million, compared to RMB 2,804.5 million in 2022[52]. - Gross profit from continuing operations rose by 29.0% to RMB 512.8 million, with a gross margin increase from 14.2% to 17.6%[52]. - The medical business accounted for 91.9% of total revenue, with continuing operations revenue reaching RMB 2,676.0 million, a 5.3% increase from RMB 2,540.9 million in 2022[53]. - The company recorded a loss attributable to owners of approximately RMB 9.3 million, a significant improvement from a loss of RMB 460.3 million in 2022[52]. - Non-medical business revenue declined by 10.2% to RMB 236.8 million in 2023, down from RMB 263.6 million in 2022, while the gross margin increased by 17 percentage points to 17.9%[58]. - Cash and cash equivalents decreased to approximately RMB 203.1 million as of December 31, 2023, from RMB 294.3 million in 2022, primarily due to reclassification of RMB 154.8 million to assets held for sale[59]. - The debt-to-equity ratio increased to approximately 150% as of December 31, 2023, compared to 141% in 2022[60]. - Interest expenses for ongoing operations decreased to approximately RMB 164.7 million in 2023 from RMB 273.1 million in 2022, mainly due to a significant reduction in interest expenses on preferred notes[65]. - The company recorded a reversal of expected credit loss of RMB 49.3 million for financial assets, compared to a loss of RMB 141.7 million in the previous year[50]. - The company has outstanding principal of USD 29.18 million (approximately RMB 206.65 million) and overdue interest of USD 27.72 million (approximately RMB 196.31 million) on preferred notes as of December 31, 2023[94]. Market Expansion and Product Development - The company is actively exploring new sales opportunities while maintaining existing sales, particularly in key provinces like Guangdong and Beijing[11]. - The group aims to provide high cost-performance products and services, actively promoting the development and sales of domestic alternatives to imported brands such as Roche and Abbott, resulting in a positive sales trend[13]. - The group began developing overseas markets, focusing on Southeast Asia, where there is a rapidly growing demand for medical devices due to local population and healthcare policies[14]. - The group has established stable partnerships with agents in Southeast Asia, successfully achieving bulk sales in the Vietnamese market[14]. - The company has resumed production of the 135 color film production line and reintroduced products to the market, contributing to new profit growth points[10]. - The company is expanding its product coverage and actively developing new technologies, including the 780nm laser film and gaming products[10]. - The company aims to enhance service quality while meeting the needs of customers, hospitals, and patients during the pandemic recovery phase[11]. - The company has developed over 20 secondary and tertiary hospitals in regions such as Guangxi, Guangdong, Jiangsu, Hainan, and Guizhou for its in vitro diagnostic products, aiming to provide high-cost performance products and services[31]. - The company plans to establish a POCT (point-of-care testing) R&D platform in 2024 to enhance its product line and improve market competitiveness through patent development[86]. - The company plans to expand its pet food product range and launch rapid diagnostic products in the pet healthcare sector in 2024[87]. Intellectual Property and Innovation - The company received a total of 152 patents by the end of 2023, including 9 invention patents, 114 utility model patents, and 29 software copyrights[10]. - The company emphasizes intellectual property management and continues to enrich its portfolio of patents and innovations[10]. - The company established an IVD R&D center in 2023 to enhance its continuous innovation capabilities and core competitiveness in the in vitro diagnostic field[36]. - The group plans to continue strategic investments in technology innovation and product development in 2024, ensuring a solid foundation for ongoing innovation and resource support[17]. - The company is focused on integrating technology and conducting secondary development to further enhance its product offerings[10]. Corporate Governance and Compliance - The board of directors emphasizes the importance of good corporate governance as a foundation for managing business risks and balancing the interests of shareholders, customers, and employees[194]. - The company has adopted the standard code of conduct for securities trading as per the listing rules, ensuring all directors have confirmed compliance throughout the year[185]. - The board of directors has committed to continuous improvement in corporate governance practices, including regular training for directors and senior management on compliance with listing rules[197]. - The company has maintained compliance with all corporate governance codes as per the listing rules, with minor exceptions noted regarding attendance at the annual general meeting[195]. - The company has not noted any incidents of non-compliance with the standard code of conduct by relevant employees during the year[186]. Financial Restructuring and Debt Management - The company has initiated a debt restructuring plan for its defaulted senior notes, which was approved by the Grand Court of the Cayman Islands[45]. - The company completed a debt restructuring plan involving USD 194.51 million of existing unpaid debt, which was approved by a majority of bondholders[98]. - On March 14, 2024, the company fully redeemed USD 60.5 million (approximately RMB 434.74 million) related to the debt restructuring[102]. - The company is actively collaborating with well-known domestic and international enterprises to introduce advanced technologies and improve product quality[91]. - The company faces liquidity risk, which may hinder its ability to meet obligations; it is actively discussing restructuring plans with noteholders to ensure sufficient cash and credit levels[121]. Employee and Talent Management - The company emphasizes talent development, aiming to attract high-level professionals to enhance its research and marketing capabilities, thereby boosting its core competitiveness[17]. - The company is committed to providing competitive compensation and a harmonious work environment to attract and retain talented employees[129]. - The company aims to enhance its R&D and marketing network by increasing talent acquisition and training efforts, focusing on high-level talent[93]. Environmental and Social Responsibility - The company has implemented environmental measures during production, including noise control and waste management, to comply with relevant laws and regulations[133]. - The group recorded charitable donations of approximately RMB 2.44 million for the year, down from RMB 6.89 million in the previous year[147]. Shareholder and Market Relations - The company aims to enhance shareholder returns by focusing on sustainable profit growth and stable dividend payouts, considering business development needs and financial stability[130]. - The company did not declare an interim dividend for the year and does not recommend a final dividend for the year, consistent with the previous year[136]. - The company maintains a public float of at least 25% of its issued shares, in compliance with listing rules[184].

COVID-19 Impact - Yestar Healthcare Holdings reported a significant impact from COVID-19, particularly in major cities like Shanghai, which faced lockdowns for nearly three months[6]. - The demand for in vitro diagnostic products decreased significantly during the lockdowns, leading to many distributors reducing operations or temporarily closing[6]. - Despite challenges, Yestar has been working to quickly rebuild its distribution channels and resume operations as the pandemic situation stabilizes[6]. - Yestar's business began to recover in June 2022, although the overall environment remains challenging due to sporadic COVID-19 cases in major cities[6]. - The company continues to monitor the impact of the ongoing pandemic on its operations and financial performance[33]. Financial Performance - The company's revenue for the medical business was RMB 1,841.2 million, a year-on-year decrease of 13.4% due to city lockdowns affecting hospital services[11]. - Revenue for the six months ended June 30, 2022, was RMB 1,966,063 thousand, a decrease of 15.4% compared to RMB 2,322,702 thousand in the same period of 2021[68]. - Gross profit for the same period was RMB 294,164 thousand, down 34.3% from RMB 447,066 thousand year-on-year[68]. - The company reported a loss of RMB 184,056 thousand for the period, compared to a profit of RMB 120,877 thousand in the previous year[71]. - The net loss attributable to the company was RMB 165.3 million, with a basic loss per share of RMB 7.09[9]. - The total comprehensive loss for the period was RMB (244,378) thousand, which includes foreign exchange differences of RMB (60,322) thousand[78]. - The company experienced a decrease in cash flow from operating activities, reporting a net cash outflow of RMB (158,979) thousand for the six months ended June 30, 2022, compared to an inflow of RMB 220,598 thousand in the prior year[87]. Expenses and Costs - Gross profit margin for the medical segment declined by 4.0 percentage points to approximately 16.2%[11]. - Sales and distribution expenses decreased by 7.6% year-on-year to RMB 132.4 million, while administrative expenses increased to RMB 161.0 million[9]. - Total interest expenses for the period amounted to approximately RMB 103.1 million, compared to RMB 59.0 million for the same period last year[22]. - The company incurred financial costs of RMB 103,054 thousand, which is an increase of 74.5% compared to RMB 59,045 thousand in the previous year[68]. - The depreciation of property, plant, and equipment increased to RMB 19,077,000 from RMB 16,526,000 year-on-year[134]. Strategic Initiatives - The company plans to launch its own brand of in vitro diagnostic products in the second half of the year, aiming to diversify revenue sources and improve profit margins[9]. - The company is actively exploring strategic partnerships to leverage distribution and marketing platforms, enhancing its research and development capabilities[9]. - The company aims to explore overseas opportunities and establish its own brand products to diversify revenue sources and enhance profitability in the long term[24]. - The company plans to expand its product offerings and strengthen its position as a one-stop medical product supplier, focusing on domestic brands to better meet market demand[24]. Assets and Liabilities - As of June 30, 2022, the company's cash and cash equivalents amounted to approximately RMB 355.4 million, a decrease from RMB 585.2 million as of December 31, 2021, primarily due to the repayment of RMB 200 million to third-party cooperative funds[17]. - The company's interest-bearing bank loans and other borrowings totaled approximately RMB 1,745.6 million as of June 30, 2022, compared to RMB 1,576.8 million as of December 31, 2021[17]. - The current ratio as of June 30, 2022, was approximately 1.30, based on total current assets of approximately RMB 2,596.6 million and total current liabilities of approximately RMB 1,996.4 million[18]. - The debt-to-equity ratio as of June 30, 2022, was approximately 73.2%, an increase from 56.8% as of December 31, 2021[19]. - Total liabilities as of June 30, 2022, were RMB 3,604,621 thousand, with the Imaging Products segment liabilities at RMB 140,293 thousand and the Medical Products and Equipment segment at RMB 3,441,487 thousand[116]. Shareholder Information - The largest shareholder holds approximately 26.53% of the company's equity, totaling 618,662,500 shares[53]. - Major shareholders include Hartono Jeane with 391,870,000 shares (16.80%), Hartono Rico with 265,810,000 shares (11.40%), and FUJIFILM Corporation with 230,000,000 shares (9.86%) as of June 30, 2022[60]. - The company has issued a total of 2,331,590,000 shares as of the report date, with an additional 186,750,000 shares potentially to be issued under the stock option plan, representing approximately 8.0% of the existing issued shares[41]. Corporate Governance - The company has established an audit committee in compliance with listing rules, responsible for reviewing financial reporting, risk management, and internal control systems[66]. - The company has confirmed compliance with corporate governance codes as of the report date, ensuring a balance of power between the board and management[63]. - The company aims to enhance corporate governance principles and practices to balance the interests of shareholders, customers, and employees[63]. Acquisitions and Investments - The company completed the acquisition of 24.17% equity interest in Anbida Group for RMB 543,750,000 as of June 30, 2022[153]. - The company has a contractual obligation to acquire the remaining 30% equity interest in Anbida Group, with a maximum consideration of RMB 675 million[153]. - The company is in discussions to acquire the remaining 30% equity interest in Shengshiyuan, with a maximum consideration of RMB 120 million[154]. - Giant Star Medical acquired 70% equity of Kaihongda, with a maximum consideration not exceeding RMB 71.28 million, contingent on achieving guaranteed profit targets for 2017-2019[155].

Financial Performance - The company reported a net profit of RMB 127 million for the year ended December 31, 2021, reversing the previous year's loss [12]. - The overall revenue for the group increased by 20.1% year-on-year to RMB 4,930.7 million in 2021, compared to RMB 4,106.9 million in 2020 [60]. - The medical business accounted for 92.0% of total revenue, with segment revenue reaching RMB 4,535.1 million, a 20.7% increase from RMB 3,758.0 million in 2020 [62]. - The company reported a rebound in profit attributable to owners of the company to approximately RMB 3.3 million in 2021, compared to a loss of RMB 590.5 million in 2020 [60]. - Non-medical business revenue increased by 13.4% to RMB 395.6 million in 2021, compared to RMB 348.9 million in 2020 [66]. Market and Growth Opportunities - Economic activities in China have stabilized due to effective COVID-19 measures, leading to increased demand for consumables and related products [12]. - The in vitro diagnostic market in China is expected to grow due to government policies prioritizing diagnosis and prevention over treatment, creating new opportunities for the company [48]. - The Chinese in vitro diagnostics market is projected to grow from USD 7.4 billion in 2021 to USD 18.9 billion by 2027, with a compound annual growth rate (CAGR) of 16.9% [78]. - The company plans to launch its own brand of in vitro diagnostic products in the first half of 2022, following the approval of its production license, aiming to increase market share and profitability [15]. - The company aims to expand into Southeast Asian markets by collaborating with local partners who have channel resources, with plans to launch its own brand products in the region in the short term [15]. Operational Challenges - Global supply chain disruptions continue to affect raw material supply and order fulfillment, posing risks to operations [13]. - The company faces challenges from government policies aimed at accelerating healthcare reforms, which may impact market and profit margins [13]. - Geopolitical tensions among major economies are increasing threats to commodity prices, exchange rates, and interest rates [13]. - The ongoing COVID-19 pandemic has lasted three years, creating unprecedented challenges and uncertainties that negatively impact the company's sales and profitability [101]. Financial Management and Strategy - The company successfully extended its priority notes, originally due in September 2021, to 2026 at a competitive interest rate, enhancing capital liquidity and flexibility [15]. - The company has successfully completed offshore debt restructuring, with the 6.9% preferred notes being restructured at a coupon rate of 9.5% for five years [55]. - The current ratio improved from 0.86 to 1.31, and current liabilities decreased from RMB 3,288.4 million to RMB 2,161.0 million [55]. - The company is focusing on enhancing cash flow and creating sustainable and predictable revenue streams by introducing more brands and products [15]. - The company plans to adopt a cost-driven strategy to provide affordable self-branded in vitro diagnostic products to capture more market share [53]. Corporate Governance - The company has complied with all corporate governance codes as per the listing rules, with the exception of the separation of the roles of Chairman and CEO [161]. - The board consists of seven directors, including four executive directors and three independent non-executive directors, ensuring a diverse range of expertise and knowledge [166]. - The company has established an audit committee in accordance with the corporate governance code, which was formed on September 18, 2013, and operates under a written terms of reference [185]. - Independent non-executive directors have confirmed their independence status throughout the year, ensuring objective oversight of the board's activities [168]. - The company has implemented procedures for directors to seek independent professional advice, with costs covered by the company [170]. Shareholder Relations - The company did not declare any dividends for the year ended December 31, 2021, consistent with 2020 [60]. - The company has maintained a close relationship with its main supplier, Roche, to ensure sufficient supply of diagnostic products [109]. - The company aims to enhance shareholder returns by focusing on sustainable profit growth and stable dividend payouts [109]. - The company has repurchased a total of 24,732,500 shares during the year, with a total expenditure of HKD 27,063,200 [117]. - As of December 31, 2021, the distributable reserves of the company were approximately RMB 309.9 million, down from RMB 433.8 million in the previous year [119]. Research and Development - The company is actively promoting advanced imported technologies, such as Roche's latest "i-Manager" management system, to meet the growing demands of higher-level medical institutions [15]. - The company has upgraded its facilities in Guangxi Province and hired experienced R&D talent to support future development [53]. - The company is investing in R&D, allocating G% of its revenue towards developing new technologies and improving existing products [99]. - The company is committed to sustainability initiatives, aiming to reduce its carbon footprint by I% over the next five years [99]. Risk Management - The company plans to continue monitoring foreign currency risks due to exposure from USD-denominated borrowings [69]. - The company’s financial management faces liquidity risks due to extended cash cycles and increased inventory and accounts receivable turnover days [105]. - The company has established long-term contracts with hospitals and clinics ranging from one to eight years, providing stability and encouraging supplier relationships [105]. - The company has a structured approach to corporate governance, with regular reviews of its governance practices and compliance with regulations [169].

Financial Performance - The company's overall revenue increased by 45.0% year-on-year to RMB 2,322.7 million, compared to RMB 1,602.3 million for the same period last year[32]. - Gross profit rose by 55.4% year-on-year to RMB 447.1 million, with a gross margin increase of 1.2 percentage points to 19.2%[32]. - The company recorded a profit attributable to equity holders of RMB 111.9 million, compared to a loss of RMB 640.3 million for the same period last year, resulting in a net profit margin of 5.2%[35]. - The medical business accounted for 91.5% of total revenue, with segment revenue reaching RMB 2,126.4 million, a year-on-year increase of 43.9%[36]. - Non-medical business revenue increased by approximately 56.9% year-on-year to RMB 196.3 million, although the segment gross margin decreased by 7.5 percentage points to 8.9%[37]. - The net profit for the period was RMB 120,877 thousand, a significant recovery from a loss of RMB 702,847 thousand in the prior year[103]. - Earnings per share for the period was RMB 4.75, compared to a loss per share of RMB (27.05) in the previous year[101]. - The group reported a total tax expense of RMB 32,847,000 for the period, compared to a tax credit of RMB 64,599,000 in the same period of 2020, indicating a shift from a tax benefit to a tax expense[180]. Cash Flow and Liquidity - The cash flow cycle improved significantly, reducing to 113 days, a decrease of 73 days compared to June 30, 2020, and 31 days compared to December 31, 2020[30]. - As of June 30, 2021, the group's cash and cash equivalents amounted to approximately RMB 503.0 million, a decrease from RMB 572.3 million as of December 31, 2020[44]. - The company is actively negotiating with financial institutions to defer the repayment of interest-bearing bank loans and other borrowings, totaling RMB 1,583,161,000 due within the next twelve months[127]. - The company is seeking new financing arrangements to improve liquidity and cash flow to support ongoing operations[130]. - The company reported a significant uncertainty regarding its ability to continue as a going concern due to current financial conditions[128]. - The company’s operational performance and liquidity will depend on successful negotiations for deferrals and new financing within the next twelve months[131]. Market and Business Development - The company successfully introduced a domestic and a Japanese in vitro diagnostic brand, leading to positive market response and business growth[31]. - The company capitalized on the recovery of the market post-COVID-19, positioning itself to increase sales of in vitro diagnostic consumables[30]. - The overall market for in vitro diagnostics is recovering as hospitals resume non-emergency services, driven by increased public health awareness[28]. - The company remains one of the largest distributors of in vitro diagnostic products in China, with a strong presence in major cities[26]. - The in-vitro diagnostics market in China is projected to grow by USD 6.93 billion from 2020 to 2024, with a compound annual growth rate of 17%[41]. - The company aims to expand its product offerings and strengthen its market position by developing more proprietary brand products[41]. - The company is exploring opportunities to introduce additional high-quality brands based on successful experiences with new products[31]. Operational Efficiency - The management is focused on maintaining cash flow and operational efficiency to navigate uncertainties in the market[30]. - The sales team engaged with doctors through virtual meetings and hospital visits, enhancing service quality and sales performance[30]. - The company plans to upgrade its South China logistics center into a training center to enhance service quality and market penetration[40]. Shareholder and Corporate Governance - The board confirmed that the guarantee terms in the share transfer agreement remain unchanged from the date of signing until the report date[62]. - The company has adopted the standard code of conduct for securities trading by directors, ensuring compliance among all directors and relevant employees[91]. - The board of directors has confirmed compliance with the corporate governance code, except for the combined role of the chairman and CEO held by He Zhenfa[95]. - The company has not issued any shares or entered into agreements that would lead to share issuance during the reporting period[73]. Debt and Liabilities - The total interest-bearing bank loans and other borrowings as of June 30, 2021, were approximately RMB 1,583.2 million, down from RMB 1,646.4 million as of December 31, 2020[45]. - The current ratio as of June 30, 2021, was approximately 0.89, based on total current assets of approximately RMB 2,871.6 million and total current liabilities of approximately RMB 3,211.6 million[46]. - The debt-to-equity ratio as of June 30, 2021, was approximately 56%, a decrease from 59% as of December 31, 2020[47]. - The company has a contractual obligation to acquire the remaining 30% equity of the Anbida Group for a maximum consideration of RMB 675 million, with RMB 438,750,000 already paid for 19.5% equity as of June 30, 2021[196]. Employee and Operational Costs - Total employee costs for the period were approximately RMB 113.9 million, compared to RMB 94.5 million for the six months ended June 30, 2020[52]. - Sales and distribution expenses increased by 20.9% year-on-year to RMB 143.3 million, while administrative expenses decreased by 6.4% to RMB 157.0 million[34]. - The group reported a segment loss of RMB 8,226 thousand for imaging printing products, while the medical products and equipment segment achieved a profit of RMB 165,432 thousand[143].

COVID-19 Response and Impact - The company actively managed employee scheduling and provided sufficient personal protective equipment to maintain normal operations during the COVID-19 pandemic[13]. - The company upgraded its Guangxi factory to produce various epidemic prevention products, including disinfectants and medical masks, which were exported to countries such as the USA, Japan, Singapore, and Indonesia[13]. - The company recorded an adjusted profit attributable to shareholders, reflecting resilience during the COVID-19 pandemic, despite a decline in demand due to hospital focus on treating COVID-19 and other emergency patients[15]. - Guangxi Juxing donated over RMB 1.5 million worth of medical equipment to hospitals during the COVID-19 pandemic[40]. - By the end of March 2020, Guangxi Juxing established 4 mask production lines with a daily output of 300,000 masks, addressing the demand for pandemic prevention materials in Guangxi[40]. - The company faced significant challenges due to the COVID-19 pandemic, which impacted sales and profitability, particularly in the in vitro diagnostics business[111]. - The board acknowledges the uncertainty and risks posed by the pandemic on the global economy and business operations[111]. Financial Performance - The company reported a strong cash flow, which was essential for maintaining business operations during challenging times[13]. - For the year ended December 31, 2020, the overall revenue decreased by 16.2% to RMB 4,106.9 million compared to RMB 4,903.3 million in 2019, primarily due to the impact of COVID-19[68]. - The sales performance in the second half of 2020 rebounded with a growth of 56.3%, reaching RMB 2,504.6 million compared to RMB 1,602.3 million in the first half[69]. - Gross profit decreased by 36.2% to RMB 806.9 million, with a gross margin decline of 6.2 percentage points to 19.6% due to changes in product pricing and sales channels[68]. - The company recorded a loss attributable to shareholders of RMB 590.5 million, compared to a profit of RMB 202.7 million in 2019[1]. - The total impairment loss for goodwill and other intangible assets was RMB 790.4 million, with goodwill impairment loss of RMB 447.5 million and other intangible asset impairment loss of RMB 342.9 million[1]. - The company has not declared or deducted any cumulative dividends to be paid to the seller as compensation due to the ongoing impact of COVID-19 on 德潤利嘉's business[62]. - The company has incurred significant expenses related to working capital, interest on issued notes, and potential acquisitions, leading to negative free cash flow in the coming years[114]. Strategic Initiatives and Market Position - The company introduced two new brands to its medical distribution platform in the first half of the year, with online distribution of thrombus detection products expected in the second half[15]. - The company plans to upgrade its logistics hubs in East and South China to expand its customer base and enhance service offerings[15]. - The company aims to diversify its product portfolio by introducing more domestic brands that complement existing Roche products, targeting higher profit margins[18]. - The company is exploring upstream vertical integration opportunities to strengthen its market position in China's value chain[18]. - The establishment of two new logistics centers in North and East China aims to improve value-added services such as after-sales support and training[25]. - The company believes that the recent government policies supporting domestic brand development will provide opportunities for growth in the market[15]. - The company plans to expand its distribution network and product offerings to increase market share and enhance its position in the value chain[89]. - The company aims to introduce more high-quality products and target domestic brands to meet market needs, leveraging government policies promoting local brands[90]. Operational Efficiency and Management - The company has successfully installed new highly automated closed-loop instruments, which are expected to drive demand for new reagents and ensure future sales of in vitro diagnostic consumables[15]. - Guangxi Juxing's inventory turnover period improved, with inventory decreasing by 24.3% year-on-year to RMB 5.915 billion, while trade receivables also saw a reduction of 5.7%[57]. - The company upgraded its East China logistics center to a training center, enhancing customer relationships and promoting new product sales[56]. - The company has successfully expanded its network into Guangxi and Anhui provinces, further broadening its geographical footprint[54]. - The company has a strong emphasis on maintaining liquidity and evaluating its financial options in light of upcoming debt obligations[97]. - The management team is responsible for developing sales strategies and product development to achieve strategic goals[99]. Governance and Compliance - The company has maintained compliance with the corporate governance code as per the listing rules, with independent non-executive directors constituting at least one-third of the board[163]. - The board has reviewed and confirmed that the controlling shareholders have complied with non-competition commitments during the year[137]. - The company has received confirmations from independent non-executive directors regarding their independence status throughout the year[163]. - The audit committee is responsible for reviewing and supervising the company's financial reporting, risk management, and internal control procedures[179]. - The company has established a written terms of reference for the audit committee in compliance with the latest listing rules[179]. - The company has adopted the standard code of conduct for securities transactions by directors as per the listing rules[157]. Shareholder Relations and Equity - The company aims to enhance shareholder returns by focusing on sustainable profit growth and maintaining a stable dividend policy[118]. - The company has repurchased a total of 15,550,000 shares during the year, with a total expenditure of HKD 19,299,000[126]. - As of December 31, 2020, the distributable reserves amounted to approximately RMB 485.3 million, a decrease from RMB 639.5 million in 2019[128]. - Major shareholders include Hartono Jeane with 391,870,000 shares (16.63%), Hartono Rico with 265,810,000 shares (11.28%), and FUJIFILM Corporation with 230,000,000 shares (9.76%)[150]. - The company maintains a public float of at least 25% of its issued shares as required by listing rules[157]. - The company has authorized share repurchases not exceeding 10% of the issued shares as of the 2019 and 2020 annual general meetings[124]. Risk Management - The company has been actively monitoring external and inherent risks that may affect its operations and performance[111]. - The company’s operational performance and financial condition are subject to various factors, including the ability to negotiate with financial institutions regarding debt repayments[111]. - The company has a significant reliance on two suppliers, Fujifilm and Roche, which poses a concentration risk[114]. - The company emphasizes the importance of maintaining good relationships with suppliers to achieve business growth, particularly with Roche for diagnostic products[118].

Business Operations and Market Environment - Yestar Healthcare is one of the largest distributors and service providers of in vitro diagnostic products in China, actively expanding its channels to lower-tier hospitals[10]. - During the first half of 2020, Yestar successfully introduced two in vitro diagnostic brands to its product line, enhancing its offerings to the public market[10]. - The demand for medical film products remained stable, primarily due to CT scans being a key screening tool for suspected COVID-19 cases[10]. - Yestar launched 84 disinfectants and medical disposable masks in February and March 2020 to combat the COVID-19 pandemic, exporting masks to multiple countries including the USA and Japan[10]. - The company continued to provide professional products and services during the COVID-19 outbreak, ensuring the smooth operation of in vitro diagnostic departments in hospitals[10]. - Yestar's management demonstrated strong resource allocation capabilities and quick execution in launching new products during the pandemic[10]. - The overall market environment in the first half of 2020 was challenging due to the COVID-19 outbreak, impacting routine diagnostic tests and screenings[10]. - The company is committed to prioritizing customer needs and showcasing professional services during the COVID-19 crisis[10]. Financial Performance - The group's revenue for the six months ended June 30, 2020, decreased by 29.9% to RMB 1,602.3 million compared to RMB 2,287.1 million for the same period in 2019[13]. - Gross profit fell by 55.1% to RMB 287.7 million, with a gross margin of 18.0%, down 10 percentage points from 28.0% in the previous year[13]. - The company recorded a net loss attributable to shareholders of RMB 640.3 million, marking its first loss since listing in 2013, with a net loss margin of 39.96%[13]. - Non-medical business revenue decreased by approximately 46.7% to RMB 125.1 million compared to RMB 234.8 million for the same period in 2019[15]. - The company reported a total comprehensive loss of RMB 727,654,000 for the six months ended June 30, 2020[92]. - The company reported a pre-tax loss of RMB 767,446 thousand, compared to a profit of RMB 290,813 thousand in the same period of 2019[101]. - The net cash generated from operating activities for the six months was RMB 263,622 thousand, a significant increase from RMB 55,233 thousand in the prior year[101]. Assets and Liabilities - Trade receivables decreased by 17.2% from approximately RMB 1,560.6 million as of December 31, 2019, to approximately RMB 1,292.5 million as of June 30, 2020[13]. - As of June 30, 2020, the company's cash and cash equivalents amounted to approximately RMB 708.6 million, an increase from RMB 546.2 million as of December 31, 2019[18]. - The company's interest-bearing bank loans and other borrowings totaled approximately RMB 1,707.1 million as of June 30, 2020, compared to RMB 1,680.5 million as of December 31, 2019[20]. - The company's current ratio was approximately 1.26 as of June 30, 2020, up from 1.15 as of December 31, 2019[20]. - The company's debt-to-asset ratio was approximately 63% as of June 30, 2020, compared to 49% as of December 31, 2019[20]. - Total liabilities as of June 30, 2020, were RMB 4,286,740,000, with segment liabilities of RMB 3,881,736,000[135]. Strategic Plans and Future Outlook - The company plans to introduce two new brands to its distribution platform in the second half of 2020 as hospitals gradually resume operations[15]. - The company aims to strengthen its marketing efforts for new products in the second half of 2020[15]. - The company plans to promote a newly introduced thrombosis testing product to expand its revenue sources[18]. - The company aims to enhance its value-added services to improve customer loyalty, including collaboration with Roche for testing procedure visualization services[18]. - The company has plans for future market expansion and product development, although specific details were not disclosed in the provided content[92]. Corporate Governance and Compliance - The company has adopted the standard code of conduct for securities trading as per the listing rules, ensuring compliance among directors and relevant employees[70]. - The company’s board emphasizes good corporate governance as a key factor for success, balancing the interests of shareholders, customers, and employees[72]. - The company has established an audit committee to oversee financial reporting and risk management, ensuring compliance with applicable accounting principles[78]. Shareholder Information and Equity - Major shareholders include Hartono Jeane with 391,870,000 shares (16.63%), Hartono Rico with 265,810,000 shares (11.28%), and FUJIFILM Corporation with 230,000,000 shares (9.76%)[63]. - The company’s total equity held by the director He Zhenfa is 618,662,500 shares, representing approximately 26.25% of the company's equity[56]. - The company has repurchased a total of 15,550,000 shares during the period, reflecting confidence in long-term strategy and growth[68]. - The company’s share repurchase program was authorized at the annual general meetings in 2019 and 2020, allowing for repurchases up to 10% of the issued shares[65]. - The company has confirmed that all directors and relevant employees complied with the trading standards during the reporting period[71]. Impairment and Legal Matters - The impairment loss for goodwill and other intangible assets amounted to approximately RMB 447.5 million and RMB 277.2 million, respectively, due to a decline in estimated recoverable amounts related to future business performance[36]. - The company has not received any compensation from the seller of Derun Lijia, despite the seller being obligated to compensate approximately RMB 9.76 million due to unmet profit guarantees[39]. - The company has incurred legal costs related to the arbitration proceedings, which will be borne by the subsidiary, Juxing Medical[32]. - The company has not identified any other significant matters related to its business and financial performance as of the announcement date[33].

Financial Performance - Total revenue for the year increased by 10% to RMB 4,903 million[13] - The company achieved a revenue increase of 10.3% year-on-year, reaching RMB 4,903.3 million[54] - The group recorded revenue of RMB 4,903.3 million for the year, representing a year-on-year growth of 10.3% driven primarily by the in-vitro diagnostics business[68] - Gross profit increased by 5.5% to RMB 1,265.3 million, although the gross margin decreased by 1.2 percentage points to 25.8% due to price drops from the "4+7 volume procurement" policy[68] - Operating profit margin declined to 9.2%, down from 11.5% in the previous year, with net profit attributable to shareholders decreasing by 19.5% to RMB 202.7 million[69] - The medical business accounted for 89.9% of total revenue, with segment revenue reaching approximately RMB 4,406.1 million, a growth of about 14.0% compared to the previous year[72] - Non-medical business revenue decreased by approximately 14.5% to RMB 497.2 million in 2019 from RMB 581.5 million in 2018, with a stable gross margin of 15.7%[76] - The group’s cash and cash equivalents as of December 31, 2019, were approximately RMB 546.2 million, down from RMB 721.3 million in 2018[76] - The group’s total assets increased by approximately 12.7% to RMB 357.1 million in 2019, accounting for about 7.1% of total revenue[76] - The group had a current ratio of approximately 1.15 as of December 31, 2019, compared to 1.52 in 2018[76] Market Expansion and Strategy - The company served a total of 1,554 hospitals by the end of 2019, expanding its network coverage to Hebei Province and Inner Mongolia[13] - The company penetrated 63 new hospitals in the year, with 90% being secondary or lower-tier hospitals[54] - The company is focusing on the lower-tier hospitals in Hebei province and Inner Mongolia, aligning with the government's healthcare reforms[54] - The company is promoting mid-range diagnostic equipment tailored to the specific needs of lower-tier hospitals[54] - The company is strategically increasing its market penetration through partnerships with medical distributors[53] - The company successfully expanded its distribution network, covering 8 provinces and 4 first-tier cities in China by the end of 2019[72] - The company is actively exploring collaboration with major partners like Roche and Fujifilm to develop diagnostic products[15] - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by 2025[102] Research and Development - Research and development expenditure reached RMB 0.46 million, aimed at enhancing medical film products and the Shanghai R&D center[15] - The company is investing $5 million in R&D for innovative medical technologies over the next two years[104] - The company has initiated the production of its own brand product "84 disinfectant" in February 2020, aimed at general cleaning and environmental disinfection to combat COVID-19[90] - The company launched high-quality disposable medical masks in March 2020, further increasing its market share in the healthcare sector[90] Operational Efficiency - Cash flow from operating activities increased by 131% year-on-year, demonstrating operational flexibility and efficiency[15] - The inventory turnover period was reduced by 10 days to 82 days, indicating improved inventory management[15] - Sales and distribution expenses increased by 28.2% year-on-year due to the push for hospital installations of Cobas e801 and laboratory automation equipment[69] - The company aims to reduce operational costs by 15% through improved supply chain management[106] Corporate Governance and Compliance - The board of directors includes executive directors and independent non-executive directors, with specific roles and responsibilities outlined[138] - The company has complied with the corporate governance code, except for the separation of the roles of chairman and CEO, which are currently held by the same person[164] - The independent non-executive directors represent at least one-third of the board, ensuring compliance with listing rules[168] - The board has adopted a diversified governance policy since September 18, 2013, and has monitored its effectiveness without the need for modifications[200] Social Responsibility and Community Engagement - The company is committed to social responsibility through various charitable donations and community engagement initiatives throughout 2019[34] - The company participated in a charity event for the 21st Hope Marathon in Shenzhen, promoting cancer prevention knowledge and supporting impoverished cancer patients[34] - The company donated educational equipment to a school in Suzhou, aiming to support the education of underprivileged youth[33] - The group made charitable donations of approximately RMB 1.84 million in the current year, compared to RMB 0.3 million in 2018[135] Financial Obligations and Risks - Derun Lijia's actual net profit after tax for 2019 was approximately RMB 871.2 million, falling short of the guaranteed annual profit of RMB 920 million by about RMB 48.8 million[62] - The seller of Derun Lijia is required to compensate the buyer an amount of RMB 97.6 million, which is double the shortfall in profit[62] - The company is exposed to regulatory risks due to the slow implementation of the "two-invoice system" in the medical device distribution industry, which may affect mid-term revenue[112] - The company relies heavily on two suppliers, Fujifilm and Roche, for its operations, which poses a concentration risk[114] Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 20%[100] - Future guidance includes a focus on enhancing digital marketing strategies to boost online sales by 25%[107] - The company has provided guidance for the next fiscal year, projecting revenue growth of 25% to $625 million[179]

Company Overview - Yestar Healthcare Holdings Company Limited is one of the largest distributors and service providers of in vitro diagnostic products in China, with a network covering 12 provinces and 1 autonomous region as of June 30, 2019[26]. - The company established direct sales and service relationships with 1,508 hospitals and clinics, representing a growth of approximately 9.5% compared to 1,377 hospitals and clinics as of June 30, 2018[28]. - The in vitro diagnostic market in China is projected to reach approximately RMB 111 billion by 2022, with a strong compound annual growth rate (CAGR) of 19.0% due to increasing demand for medical consumables[27]. Market Expansion and Collaboration - The company is actively exploring opportunities in the Inner Mongolia market, expanding its geographical coverage and depth in response to the demand growth driven by the tiered medical system and two-invoice system[28]. - Yestar is collaborating with Roche Diagnostics to research the potential of the Cobas 801 system, which can perform a wide range of heterogeneous immunoassays three times faster than market alternatives[28]. - The tiered medical system aims to enhance overall efficiency by referring patients with common diseases to lower-level medical facilities, thereby expanding the coverage of China's healthcare system[27]. - The two-invoice system is designed to simplify the distribution channels for medical products, making them more accessible and affordable, which benefits large distributors like Yestar[27]. Financial Performance - The group's revenue for the six months ended June 30, 2019, was approximately RMB 2,287.1 million, representing a year-on-year growth of about 12.0% driven by the expansion of its medical business[31]. - The gross profit increased by approximately 13.5% to about RMB 640.5 million, with a gross margin of 28.0% compared to 27.6% for the same period last year[31]. - The non-medical business revenue decreased by approximately 24.6% to RMB 234.8 million, with a gross margin of 16.7%, up 2.2 percentage points from the previous year[33]. - The company reported a net profit for the period was RMB 200,561 thousand, representing a 24.0% increase from RMB 161,765 thousand in 2018[93]. - Revenue for the six months ended June 30, 2019, was RMB 2,287,118 thousand, an increase of 12.0% compared to RMB 2,042,108 thousand in 2018[90]. Assets and Liabilities - Total assets as of June 30, 2019, amounted to RMB 4,953,555 thousand, compared to RMB 4,788,952 thousand as of December 31, 2018[99]. - The total liabilities as of June 30, 2019, were RMB 4,757,532,000, compared to RMB 4,758,812,000 as of December 31, 2018, showing a marginal decrease[149]. - The current ratio was approximately 1.11 as of June 30, 2019, based on total current assets of approximately RMB 3,240.4 million and total current liabilities of approximately RMB 2,908.4 million[39]. - The debt-to-asset ratio was approximately 60% as of June 30, 2019, down from 62% at the end of 2018, primarily due to an increase in total equity[40]. Cash Flow and Financial Position - As of June 30, 2019, the company's cash and cash equivalents were approximately RMB 600.3 million, down from RMB 721.3 million at the end of 2018[36]. - The cash flow from operating activities for the six months ended June 30, 2019, was RMB 55,233,000, compared to a cash outflow of RMB 99,381,000 in the same period of 2018[108]. - Cash and cash equivalents at the end of the period amounted to RMB 600,333,000, an increase from RMB 367,912,000 in the previous year, representing a 63.0% growth[114]. - The company incurred a foreign exchange loss of RMB 3,477,000 during the reporting period[101]. Corporate Governance - The company believes that good corporate governance is essential for balancing the interests of shareholders, customers, and employees[84]. - The chairman and CEO roles are currently held by the same individual, which the board believes enhances leadership stability[85]. - The audit committee, consisting of three independent non-executive directors, reviewed the interim financial information, ensuring compliance with applicable accounting principles[88]. Shareholder Information - Major shareholders include Hartono Jeane with 391,870,000 shares (16.45%), Hartono Rico with 265,810,000 shares (11.16%), and FUJIFILM Corporation with 230,000,000 shares (9.66%)[76]. - The company repurchased a total of 23,317,500 shares during the period, with the highest price per share at HKD 1.87 and the lowest at HKD 1.00[80]. - The total amount paid for share repurchases during the period was HKD 34,317,000[80]. Acquisitions and Investments - Giant Medical acquired 70% equity of Hong En, with a maximum consideration not exceeding RMB 270 million, contingent on achieving guaranteed annual profits for 2017, 2018, and 2019[194]. - The company has established compensation formulas for non-controlling equity holders if annual guaranteed profits are not met[196]. - The company will evaluate the remaining 30% equity acquisitions at an appropriate time[196]. Research and Development - Research and development costs increased to RMB 297,000 in the first half of 2019 from RMB 133,000 in the same period of 2018, reflecting a significant rise of approximately 123%[165].

Financial Performance - Total revenue for the year reached approximately RMB 4,447.0 million, an increase of about 13.2% compared to RMB 3,926.9 million in the previous year[12]. - Profit attributable to the owners of the parent company increased by approximately 0.7% to RMB 251.7 million, up from RMB 250.0 million in the previous year[12]. - Gross profit rose by approximately 8.4% to RMB 1,198.8 million, with a gross margin of 27.0% for 2018[74]. - Medical business revenue accounted for 86.9% of total revenue, growing 16.1% to RMB 3,865.5 million, despite a decline in gross margin to 28.5%[75]. - Non-medical business revenue decreased by approximately 2.6% to RMB 581.5 million, with a gross margin decline to approximately 16.7%[78]. - Selling and distribution expenses increased by approximately 32.7% to RMB 231.7 million, primarily due to increased sales activities in the medical business[74]. - The company's net cash and cash equivalents increased to approximately RMB 721.3 million, up from RMB 634.7 million in 2017, mainly due to proceeds from the issuance of new shares[78]. - The company's current ratio improved to approximately 1.52 from 1.20 in 2017, reflecting a stronger liquidity position[78]. - The company's debt-to-equity ratio decreased to approximately 59% from 72% in 2017, due to share issuance and repayment of part of interest-bearing bank loans[78]. - The total interest expense for the year amounted to RMB 131.7 million, compared to RMB 130.0 million in the previous year[80]. - The total employee cost for the year was approximately RMB 168.7 million, an increase from RMB 156.1 million in the previous year[80]. - The company's distributable reserves as of December 31, 2018, amounted to approximately RMB 838.8 million, an increase from RMB 499.4 million in 2017[130]. Business Expansion and Development - The number of hospitals with direct sales and service relationships increased to 413, an 11% year-on-year growth from 372 hospitals[14]. - The network of lower-tier hospitals expanded to 1,078, enhancing coverage in affluent and densely populated areas of China[14]. - The company established a research and development department in Shanghai to explore new technologies and develop new products and services[11]. - The company aims to enhance existing coverage penetration and optimize revenue from past acquisitions[14]. - Strategic partnerships are being pursued to expand collaboration and leverage resources in a competitive market[15]. - The company is actively seeking opportunities along the healthcare and medical value chain[11]. - The establishment of an independent clinical laboratory in collaboration with the Chinese Academy of Sciences and Shanghai RunDa Medical Technology Co., Ltd. marks a strategic entry into the in vitro diagnostics sector[11]. - The company plans to continue investing in sales and marketing to expand its network and improve penetration in existing areas, aiming to capture various potential opportunities[19]. - The company has successfully transformed from a manufacturer of paper and medical films to a leading platform for in vitro diagnostic products and services in China over the past four years[19]. - The company aims to expand its product range and revenue sources through high-quality product development initiatives[19]. - The company has established long-term partnerships with several well-known in vitro diagnostic developers and product developers to seize emerging opportunities[86]. - The company is focused on expanding its market presence and developing new products and technologies in the medical consumables sector[95]. Market Trends and Opportunities - The female health market in China is projected to exceed $51 billion by 2025, driven by a female population of approximately 680 million, indicating a significant growth opportunity[19]. - Recent focus areas for female health include fertility, childbirth, and child care, highlighting the company's commitment to addressing critical health issues for women[19]. - The average medical and healthcare expenditure increased by 16.1% to RMB 1,685 per capita in 2018[85]. - The number of patients seeking cross-provincial medical care reached 1.32 million in 2018, which is 6.3 times that of 2017[85]. Corporate Governance and Management - The company has a strong management team with extensive experience in production, finance, and marketing, including Chen Daoqiang with over 37 years in imaging printing products and Wang Hong with over 12 years in finance and accounting[94][95]. - The company has received multiple awards for its achievements in the imaging industry, including recognition from the Shanghai Economic Commission for its medical X-ray film and laser printing film[91]. - The company is dedicated to maintaining high standards in financial planning and reporting, overseen by its finance director, Wang Hong[94]. - The company has a commitment to corporate governance, with a structured board comprising various committees including audit, remuneration, and nomination[98]. - The company has adopted the standard code of conduct for securities trading by directors, ensuring compliance throughout the year[163]. - The board consists of eight members, including five executive directors and three independent non-executive directors, with no changes during the year[168]. - The company has arranged comprehensive onboarding guidance for new directors to ensure proper understanding of business operations and responsibilities[180]. - The company has implemented a policy for directors to seek independent professional advice when necessary[172]. - The company has received independent professional advice to assist directors in fulfilling their duties[172]. - The board meets at least quarterly to discuss overall strategy and financial performance[172]. Risks and Challenges - The company faces intense competition in the medical device industry, which could lead to price reductions and affect market share and financial performance[114]. - The company is subject to regulatory risks in the Chinese medical market, which could impact its competitive advantage as the market evolves[113]. - The company reported a significant reliance on two suppliers, Fujifilm and Roche, which poses a concentration risk in its supply chain[110]. - The revenue from Roche's diagnostic products accounted for a substantial portion of total revenue, indicating a strategic partnership that is critical for the company's performance[110]. - The company recorded a foreign exchange loss of approximately RMB 2.0 million during the year, highlighting currency risk exposure[110]. - The cash flow cycle for the company's in vitro diagnostic business can extend up to 12 months, potentially impacting liquidity and operational cash flow[112]. - The company has a stable cash flow generation but anticipates negative free cash flow in the coming years due to ongoing expenditures and interest payments on preferred shares[110]. Shareholder Relations and Dividends - The company did not declare any interim dividend for the year and does not recommend a final cash dividend for the year ended December 31, 2018, compared to 5.5 HKD per share in 2017[124]. - The company emphasizes effective communication with shareholders to enhance investor relations and plans to meet with investors at least once a year[121]. - The company is focused on developing its core business to achieve sustainable profit growth while maintaining stable dividend returns to shareholders[121]. Environmental and Social Responsibility - The company has implemented environmental measures including noise control, energy usage management, and wastewater and emissions management[121]. - The group made charitable donations of approximately RMB 0.3 million during the year, consistent with the previous year[131]. - The company has not recorded any non-compliance with applicable environmental regulations during the year[121].