股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 巨星醫療控股有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | 是 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02393 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 4,000,000,000 | HKD | | 0.025 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 4,000,000,000 | HKD | | 0.025 | HKD | | 100,000,000 | 本月底法定/ ...

Group 1 - The core business of the company focuses on high-margin medical consumables and equipment, specifically medical imaging products and in vitro diagnostic products [2] - The company has established a strong sales network in China and has gained the trust of international manufacturers such as Fujifilm, Roche Diagnostics, Becton Dickinson, and Thermo Fisher Scientific [2] - The company is the exclusive manufacturer of medical film for Fujifilm in China and one of the largest distributors of Roche's in vitro diagnostic products in the country [2] Group 2 - As of July 2, the company's stock price increased by 11.5% to HKD 0.126 per share, with a trading volume of 16.97 million shares and a turnover of HKD 2.21 million [1] - The company has achieved a cumulative increase of 26.97% in the past month and 82.26% year-to-date, outperforming the Hang Seng Index's 20% increase [1] - Financial data shows that for the year ending December 31, 2024, the company reported total revenue of CNY 2.41 billion, a year-on-year decrease of 17.26%, while net profit attributable to shareholders was CNY 922 million, a year-on-year increase of 6736.05% [1]

Group 1 - The core viewpoint of the news highlights the significant stock performance of Giant Star Medical Holdings, with a notable increase in share price and trading volume, outperforming the Hang Seng Index [1] - Giant Star Medical Holdings reported a total revenue of 2.41 billion yuan for the year ending December 31, 2024, reflecting a year-on-year decrease of 17.26%, while the net profit attributable to shareholders surged to 922 million yuan, marking a staggering increase of 6736.05% [1] - The company has a gross profit margin of 16.56% and a debt-to-asset ratio of 64.46%, indicating its financial health and leverage position [1] Group 2 - Currently, there are no institutional investment ratings for Giant Star Medical Holdings, suggesting a lack of analyst coverage [2] - In terms of industry valuation, the average price-to-earnings (P/E) ratio for the healthcare equipment and services sector is -21.47 times, with a median of 0.33 times. Giant Star Medical Holdings has a P/E ratio of 0.27 times, ranking first in the industry [2] - The company specializes in high-margin medical consumables and equipment, focusing on medical imaging products and in vitro diagnostic products, and has established a strong sales network in China [3] - Giant Star Medical Holdings is the exclusive manufacturer of medical film for Fujifilm in China and one of the largest distributors of Roche's in vitro diagnostic products in the country [3] - The company aims to explore potential acquisition opportunities and establish strategic partnerships with industry leaders to strengthen its position in the high-margin medical consumables and equipment market in China [3]

Economic Overview - In 2024, the global economic growth rate declined to 2.9%, with significant challenges from geopolitical conflicts and trade tensions impacting the market[13]. Health Industry in China - The total revenue of the health industry in China surpassed RMB 9 trillion, with the medical device market reaching RMB 1.13 trillion, a year-on-year growth of 9.1%[14]. - The in-vitro diagnostics (IVD) market grew to RMB 240 billion, accounting for 20% of the total medical device market, and is expected to exceed RMB 300 billion by 2025[14]. - The penetration rate of AI medical devices exceeded 30%, with the telemedicine market projected to surpass RMB 180 billion by 2025[15]. - The domestic market for home medical devices sold over 20 million units, with per capita healthcare spending rising to RMB 2,547, accounting for 9% of total consumption[15]. - The medical device market in China is projected to reach RMB 1.5 trillion by 2025 and exceed RMB 2.5 trillion by 2030, with a target for domestic high-end equipment replacement rate to increase to 45%[77]. - The Chinese healthcare industry is projected to continue growing, driven by policy support, technological innovation, and aging population demands, with the IVD market expected to exceed RMB 300 billion by 2025[26]. Company Developments - The company launched the retro S1 film camera, designed for beginners, featuring a 35mm reusable film structure and ISO 400 film[13]. - The company has obtained a total of 159 patents, including invention patents and software copyrights, enhancing its intellectual property portfolio[13]. - The company aims to expand its product coverage and continuously seek new profit growth points[13]. - The company has established stable partnerships with agents in Southeast Asia, with clear sales activities and successful bulk sales in the Vietnamese market[28]. - The company plans to expand its overseas market presence, focusing on its own brands "Yes!Star" and "Yestar Smart," particularly in medical imaging products like medical films and dental films[28]. - The company participated in 9 international exhibitions and 2 production and sales matching events in 2024, enhancing its global outreach[28]. - The company is actively exploring new business models for overseas market operations, particularly in Southeast Asia, the Middle East, and Africa[18]. - The company aims to enrich its film camera product matrix and expand market coverage to create new profit growth points, while also enhancing market competitiveness through smart innovations and traditional imaging integration[77]. Financial Performance - The overall revenue for the year decreased by 17.3% to RMB 2,409.9 million, compared to RMB 2,912.7 million in the previous year[49]. - The gross profit declined by 22.2% to RMB 399.2 million, with a gross profit margin dropping from 17.6% to 16.6% due to the impact of national procurement policies[49]. - Revenue from the medical products and equipment segment reached RMB 2,176.2 million, a decrease of 18.7% from RMB 2,676.0 million in the previous year[50]. - The number of hospitals and clinics served decreased by 25% to 1,226, down from 1,639 in the previous year[52]. - Non-medical business revenue fell by 1.3% to RMB 233.7 million, with a gross profit margin decline of 0.4 percentage points to 17.5%[54]. - Impairment losses on non-financial assets amounted to RMB 180.5 million for the year[49]. - Cash and cash equivalents decreased to approximately RMB 93.8 million from RMB 203.1 million in the previous year[55]. - The basic earnings per share from continuing operations was RMB 39.5 cents, compared to a loss of RMB 0.4 cents in the previous year[49]. Debt and Financial Management - The company confirmed a gain of $152,704,000 from the cancellation of new priority notes, equivalent to approximately RMB 1,083,407,000, following a debt restructuring plan[36]. - The company has completed the sale of its subsidiary, Anbai Group, for RMB 574,750,000, and it will no longer consolidate Anbai Group's financials in its reports[40]. - The company has restructured $194,506,648 of offshore debt due in 2026, with a 9.5% interest rate, to provide liquidity solutions for its bondholders[35]. - As of December 31, 2024, the group's debt-to-equity ratio was approximately 29%, a significant decrease from 150% in 2023[56]. - The total interest-bearing loans and borrowings amounted to RMB 279.5 million as of December 31, 2024, down from RMB 1,571.6 million in 2023[56]. - Total interest expenses decreased to approximately RMB 30.2 million in 2024 from RMB 164.7 million in 2023, primarily due to the full redemption of preferred notes[60]. Corporate Governance and Management - The company emphasizes the importance of relationships with key stakeholders, including customers, suppliers, employees, and shareholders, for its success[104]. - The company has established long-term contracts with hospitals and clinics ranging from 1 to 8 years, providing stability and encouraging supplier-distributor relationships[105]. - The company has a non-competition commitment from its controlling shareholders, ensuring they will not engage in competing businesses in the imaging printing and medical imaging sectors in China[146]. - The board of directors includes a mix of executive and independent non-executive directors, with a requirement for one-third of directors to retire at each annual general meeting[134]. - The company has confirmed that all independent non-executive directors meet the independence criteria set by the Hong Kong Stock Exchange[135]. - The company has implemented strict codes of conduct to prevent corruption and other misconduct among its directors[199]. - The board has the authority to appoint individuals to fill temporary vacancies, with such appointments subject to re-election at the next annual general meeting[193]. Talent Management and Development - By 2025, the company aims to enhance its talent strategy, focusing on attracting high-level talent to improve its R&D and marketing capabilities[18]. - The company is focusing on talent management optimization in 2024, emphasizing the development of key areas such as in vitro diagnostics and digital marketing[33]. - The company values its employees as its most valuable asset and aims to provide a harmonious and safe working environment[107]. Risks and Challenges - The company faces major risks including technological development risks, regulatory risks, and political risks that could impact its operations and profitability[100][101][103]. - Regulatory changes in the healthcare industry may affect the gross margins of the company's medical products[101]. - The upcoming U.S. presidential election in January 2025 may lead to policy changes affecting international trade with China, potentially reducing demand for the company's in vitro diagnostic business[103]. Shareholder Information - The company did not declare an interim dividend for the year and the board does not recommend a final dividend for the year[114]. - As of December 31, 2024, the company's net interest-bearing loans and borrowings amounted to approximately RMB 71.72 million, a decrease from RMB 77.44 million in 2023[130]. - The company has a reserve available for distribution to shareholders of approximately RMB 154.5 million as of December 31, 2024[125]. - Major shareholders include Hartono Jeane with 391,870,000 shares (16.80%), Hartono Rico with 265,810,000 shares (11.40%), and UBS Group AG with 267,890,691 shares (11.49%) as collateral agent[152]. Future Outlook - The company plans to deepen its presence in key overseas markets such as Vietnam, Indonesia, Thailand, Afghanistan, and Iraq by 2025, while also exploring new markets in the Philippines, Malaysia, Turkey, Iran, and India[77]. - The company aims to become a leading comprehensive service provider in the in-vitro diagnostic products sector in China[170].

Group 1 - The core viewpoint of the news highlights the recent performance of Giant Star Medical Holdings, which has shown significant stock price increases and strong profit growth despite a decline in total revenue [1][2]. - As of April 14, the Hang Seng Index rose by 2.4%, while Giant Star Medical Holdings' stock price increased by 18.06%, closing at HKD 0.085 per share with a trading volume of 1.8325 million shares [1]. - Over the past month, Giant Star Medical Holdings has achieved a cumulative increase of 1.41%, and since the beginning of the year, it has risen by 16.13%, outperforming the Hang Seng Index by 4.26% [2]. Group 2 - Financial data for Giant Star Medical Holdings shows total revenue of CNY 2.41 billion for the year ending December 31, 2024, representing a year-on-year decrease of 17.26%. However, the net profit attributable to shareholders reached CNY 922 million, a remarkable increase of 6736.05% [2]. - The company's gross margin stands at 16.56%, with a debt-to-asset ratio of 64.46% [2]. - Currently, there are no institutional investment ratings for Giant Star Medical Holdings, but its price-to-earnings (P/E) ratio is 0.17, ranking first in the healthcare equipment and services industry, which has an average P/E ratio of -22.01 [3]. Group 3 - Giant Star Medical Holdings is recognized as one of China's leading high-margin medical consumables and equipment companies, focusing on high-margin medical consumables and equipment, including medical imaging products and in vitro diagnostic products [4]. - The company has established a robust sales network in China and has gained the trust of international manufacturers such as Fujifilm, Roche Diagnostics, Becton Dickinson, and Thermo Fisher Scientific [4]. - Giant Star Medical is the exclusive manufacturer of medical film for Fujifilm in China and one of the largest distributors of Roche's in vitro diagnostic products in the country. The company also produces and sells dental film under its own brand 'Yes!Star' [4].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 2,409,916, a decrease of 17.2% from RMB 2,912,733 in 2023[3] - Gross profit for the year was RMB 399,202, down 22.1% from RMB 512,782 in the previous year[3] - Profit before tax increased significantly to RMB 929,643 compared to RMB 41,040 in 2023, representing a growth of 2,166.5%[4] - Net profit attributable to owners of the company for continuing operations was RMB 921,078, a turnaround from a loss of RMB 9,316 in 2023[4] - Basic and diluted earnings per share for continuing operations were RMB 39.50, compared to a loss per share of RMB 0.40 in the previous year[4] - Total comprehensive income for the year was RMB 894,139, compared to a loss of RMB 31,362 in 2023[5] - The company reported a profit before tax of RMB 85,230,000 for the fiscal year ending December 31, 2023[27] - The company reported a significant reduction in trade payables, indicating improved cash flow management and operational efficiency[54] - The company reported a profit attributable to owners of approximately RMB 921.1 million from continuing operations, compared to a loss of RMB 9.3 million in the previous year[86] - Basic earnings per share from continuing operations were RMB 0.395, compared to a loss per share of RMB 0.004 in the previous year[86] Assets and Liabilities - Non-current assets decreased to RMB 343,983 from RMB 559,123 in 2023, a decline of 38.5%[6] - Current assets dropped significantly to RMB 1,086,099 from RMB 2,867,064, a decrease of 62.0%[6] - Current liabilities also decreased to RMB 805,270 from RMB 3,721,391, a reduction of 78.4%[6] - The company's total equity increased to RMB 508,241 from a deficit of RMB 398,442 in 2023, indicating a significant recovery[7] - Total assets as of December 31, 2024, amounted to RMB 1,430,082 thousand, with segment assets of RMB 1,425,141 thousand[26] - The company reported a total liability of RMB 921,841 thousand, with segment liabilities of RMB 898,035 thousand[26] - The total number of employees decreased to 627 as of December 31, 2024, from 713 in 2023, with total employee costs remaining stable at approximately RMB 163.1 million[96] Revenue Segmentation - The medical products segment generated revenue of RMB 233,698 thousand, while the imaging printing products segment contributed RMB 2,176,218 thousand[24] - For the fiscal year ending December 31, 2023, total revenue from continuing operations was RMB 4,705,079,000, with a breakdown of RMB 2,912,733,000 from medical imaging products and equipment, and RMB 1,792,346,000 from imaging printing products[27] - The revenue from the medical products and equipment segment reached RMB 2,176.2 million, a decrease of 18.7% from RMB 2,676.0 million in the previous year, accounting for 90.3% of total revenue[87] Expenses and Costs - The cost of goods sold, including depreciation and amortization, was RMB 2,010,714,000 in 2024, down from RMB 2,399,951,000 in 2023, a reduction of 16.2%[41] - Selling and distribution expenses increased by 31.0% to RMB 152.4 million, attributed to higher marketing expenses for new product launches[86] - Administrative expenses decreased by 20.5% to RMB 210.0 million, due to the absence of professional fees related to debt restructuring[86] - Financial costs decreased significantly to approximately RMB 30.2 million in 2024, down from RMB 164.7 million in 2023, due to the redemption of preferred notes[93] Impairment and Provisions - The company reported a net impairment loss on financial assets of RMB (23,836) thousand, indicating a recovery in certain financial assets[26] - The impairment loss provision for trade receivables increased from RMB 58,888,000 in 2023 to RMB 64,084,000 in 2024, despite a net impairment loss of RMB 5,196,000 in 2024 compared to RMB 10,007,000 in 2023[52] - Non-financial asset impairment losses amounted to RMB 180.5 million for the year[86] Corporate Actions and Future Outlook - The company completed a debt restructuring plan, resulting in a gain of RMB 1,083,407,000 from the cancellation of preferred shares for the fiscal year ending December 31, 2024[38] - The company is currently evaluating the impact of recently published but not yet effective international financial reporting standards on its financial statements[19] - The company has committed to acquiring the remaining 30% equity of the Anbida Group for a maximum consideration of RMB 675,000,000, with RMB 131,250,000 remaining payable as of December 31, 2023[56] - The company aims to enhance the sales of its proprietary brand "Yes!Star" diagnostic products through an independent marketing team and extensive distribution network[68] - The company is focused on sustainable development and long-term shareholder value through stable production plans and operational efficiency improvements[68] Market and Industry Insights - In 2024, China's healthcare industry revenue exceeded RMB 9 trillion, with a year-on-year growth of 9.1% in the medical device market, reaching RMB 1.13 trillion[70] - The IVD market specifically grew to RMB 240 billion, accounting for 20% of the total medical device market, and is projected to surpass RMB 300 billion by 2025[70] - The medical device market in China is projected to reach RMB 1.5 trillion by 2025 and exceed RMB 2.5 trillion by 2030, with a target for domestic high-end equipment replacement rate to increase to 45%[107] Miscellaneous - The company has obtained a total of 159 intellectual property rights, including invention patents and software copyrights, by the end of 2024[67] - The board does not recommend a final dividend for the year ending December 31, 2024, consistent with the previous year[117] - The annual general meeting is scheduled for May 30, 2025, with a suspension of share transfer registration from May 27 to May 30, 2025[119] - The CEO expressed gratitude to the chairman, board, management, employees, shareholders, and customers for their support and hard work[125]

Company Performance - As of March 28, the stock price of Giant Star Medical Holdings (02393.HK) closed at HKD 0.108, up 8.0% with a trading volume of 2.0375 million shares and a turnover of HKD 21.22 million, showing a volatility of 8.0% [1] - Over the past month, Giant Star Medical Holdings has seen a cumulative increase of 42.86%, and a year-to-date increase of 61.29%, outperforming the Hang Seng Index by 17.54% [1] - For the fiscal year ending June 30, 2024, the company reported total revenue of CNY 1.274 billion, a year-on-year decrease of 13.51%, while net profit attributable to shareholders was CNY 1.089 billion, a significant increase of 30,014.43% [1] Industry Valuation - Currently, there are no institutional investment ratings for Giant Star Medical Holdings [2] - The average price-to-earnings (P/E) ratio for the healthcare equipment and services industry is -3.55 times, with a median of 4.98 times. Giant Star Medical Holdings has a P/E ratio of 0.2 times, ranking first in the industry [2] - Other companies in the industry include Jingjiu Kangliao (00648.HK) with a P/E ratio of 0.38 times, Global Medical (02666.HK) at 4.54 times, Yongsheng Medical (01612.HK) at 4.58 times, Ruici Medical (01526.HK) at 5.38 times, and New Century Medical (01518.HK) at 6.16 times [2] Company Overview - Giant Star Medical Holdings is recognized as one of China's leading high-margin medical consumables and equipment companies, focusing on high-margin medical consumables and equipment, specifically medical imaging products and in vitro diagnostic products [3] - The company has established a broad sales network in China and has gained the trust of international manufacturers such as Fujifilm, Roche Diagnostics, Becton Dickinson, and Thermo Fisher Scientific [3] - Giant Star Medical is the exclusive manufacturer of medical film for Fujifilm in China and one of the largest distributors of Roche's in vitro diagnostic products in the country [3] - The company aims to continue seeking potential acquisition opportunities and establish strategic partnerships with industry giants to strengthen its position in the medical industry [3]

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].