Financial Performance - Revenue for the first half of 2023 increased by approximately 78.3% to approximately RMB218.9 million compared to RMB122.8 million in the first half of 2022[10]. - Gross profit for the first half of 2023 increased by approximately 103.5% to approximately RMB145.9 million, with a gross profit margin of approximately 66.6%[10][26]. - Profit for the period was approximately RMB27.8 million, representing an increase of approximately RMB33.0 million compared to a loss of approximately RMB5.2 million in the first half of 2022[10][26]. - Basic earnings per share for the first half of 2023 was approximately RMB2.94 cents, compared to a loss per share of approximately RMB0.55 cent in the first half of 2022[10]. - The gross profit margin improved by approximately 8.2% compared to the first half of 2022[26]. - The Group recorded profits of approximately RMB27.8 million in the first half of 2023, representing an increase of approximately RMB33.0 million compared to a loss of approximately RMB5.2 million in the first half of 2022[34][45]. - Revenue for the six months ended June 30, 2023, was RMB 218,930,000, representing an increase of 78.3% compared to RMB 122,760,000 for the same period in 2022[118]. - Gross profit for the same period was RMB 145,867,000, up 103.6% from RMB 71,683,000 in 2022[118]. - Profit for the period attributable to owners of the parent was RMB 27,822,000, a significant recovery from a loss of RMB 5,184,000 in the same period of 2022[118]. Expenses and Cost Management - Selling and distribution expenses and administrative expenses as a percentage of sales revenue decreased by approximately 8.9% to approximately 52.8% in the first half of 2023[26]. - Selling and distribution expenses increased by approximately RMB38.9 million or 84.2% to approximately RMB85.1 million in the first half of 2023, with the proportion to sales revenue remaining stable at 38.9%[42][46]. - Administrative expenses for the first half of 2023 were approximately RMB30.6 million, stable compared to RMB29.6 million in the first half of 2022, with the proportion to sales revenue decreasing from 24.1% to 14.0%[43][47]. - Cost of inventories sold rose significantly to RMB 73,063,000 in 2023, up from RMB 51,077,000 in 2022, marking an increase of 43.1%[174]. - Staff costs (excluding key management personnel) increased to RMB 29,612,000 in 2023, compared to RMB 24,490,000 in 2022, reflecting a rise of 20.9%[174]. Investments and Research - Investments in research and development of new products were increased to meet customer demands for maternity and child series products[27]. - The Group launched a total of eight new products in the first half of 2023, including one New Goodhealth series product and seven Good Health series products[28][30]. - The Group aims to accelerate research and development and launch new products to enhance competitiveness and expand sales volume[75][77]. Market and Sales Growth - The increase in revenue was mainly attributed to significant growth in both online and offline sales channels during the period[35][39]. - The Group's cross-border e-commerce business in the PRC experienced rapid growth, contributing significantly to revenue[26]. - The sales revenue from the Good Health brand in e-commerce platforms and distributor channels for infant and child products in China recorded significant growth in the first half of 2023, enhancing the overall profitability of the Group[65]. - Revenue from Mainland China reached RMB 159,917,000, representing a 110.6% increase from RMB 75,937,000 in 2022[158]. - Revenue from New Zealand increased by 25.3% to RMB 50,411,000, up from RMB 40,264,000 in 2022[158]. - Revenue from Australia rose to RMB 2,556,000, compared to RMB 828,000 in 2022, marking a growth of 208.5%[158]. Inventory and Receivables - As of June 30, 2023, the Group's inventories increased to approximately RMB 114.0 million, up by approximately RMB 38.7 million or 51.4% from RMB 75.3 million at the end of 2022[52]. - Trade receivables amounted to approximately RMB 32.0 million as of June 30, 2023, an increase of approximately RMB 3.8 million or 13.5% from RMB 28.2 million at the end of 2022[53]. - The total trade receivables as of June 30, 2023, were RMB 32,024,000, up from RMB 28,184,000 as of December 31, 2022, reflecting a growth of 13.1%[198]. Share Capital and Ownership - The number of issued Domestic Shares and H Shares as of June 30, 2023, was 673,828,770 and 272,469,600 respectively[84]. - The total issued shares of the Company as of June 30, 2023, was 946,298,370[91]. - Mr. Gui Pinghu holds 494,605,108 Domestic Shares, representing 73.40% of the relevant class of shares and 52.27% of the total share capital[81]. - Ms. Wu Yanmei holds 52,965,000 Domestic Shares, representing 7.86% of the relevant class of shares and 5.60% of the total share capital[94]. - The Hin Sang Group (International) Holding Co. Ltd. holds 59,121,600 H Shares, accounting for 21.70% of the relevant class of shares and 6.25% of the total share capital[94]. Governance and Compliance - The Company did not purchase, redeem, or sell any of its listed securities during the six months ended June 30, 2023[100]. - There were no changes in Directors' and Supervisors' information since the publication of the Company's 2022 annual report[101]. - All Directors and Supervisors confirmed compliance with the Model Code throughout the six months ended June 30, 2023[102]. - The Company has complied with the Corporate Governance Code for the six months ended June 30, 2023[103]. Economic Outlook - The global economic outlook remains uncertain, but there is optimism regarding the resilience and sustainability of China's macroeconomic recovery in the second half of 2023[77].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對 因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 NANJING SINOLIFE UNITED COMPANY LIMITED* 南 京 中 生 聯 合 股 份 有 限 公 司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：3332） 截 至2023年6月30日 止 六 個 月 的 中 期 業 績 公 告 2023年 上 半 年 財 務 摘 要 • 收 益 增 加 約78.3%至 約 人 民 幣218.9百 萬 元（2022年 上 半 年：約 人 民 幣 122.8百萬元） • 毛利增加約103.5%至約人民幣145.9百萬元（2022年上半年：約人民幣 71.7百萬元） • 本期溢利約為人民幣27.8百萬元（2022年上半年：虧損約人民幣5.2百 萬元） • 每股基本盈利約為人民幣2.94分（2022年上半年：每股虧損約人民幣0.55 分） ...

Financial Performance - Revenue increased by approximately 9.0% to RMB 274.9 million (2021: RMB 252.3 million) [15] - Gross profit increased by approximately 15.3% to RMB 160.0 million (2021: RMB 138.8 million) [15] - Loss for the Year decreased by approximately 55.2% to RMB 14.2 million (2021: Loss of RMB 31.7 million) [15] - Loss per share was RMB 1.51 cents (2021: Loss per share RMB 3.35 cents) [15] - The Group's revenue for 2022 was approximately RMB 274.9 million, representing an increase of approximately 9.0% from RMB 252.3 million in 2021 [41] - The Group recorded a loss of approximately RMB 14.2 million for 2022, a decrease of approximately 55.2% compared to a loss of approximately RMB 31.7 million in 2021 [41] - The Group's loss per share for 2022 was approximately RMB 1.51 cents, compared to RMB 3.35 cents in 2021 [50] - Other income and gains decreased from approximately RMB 15.1 million in 2021 to approximately RMB 7.9 million for the Year, primarily due to a reduction in government grants [53] Business Strategy and Development - The Group's Good Health brand's sales revenue from e-commerce platforms and distribution channels for maternity and child series products in the PRC recorded significant growth [21] - In 2023, the Group will focus on allocating more resources to research and development in new products to shorten their development cycle [23] - The Group aims to identify high-quality suppliers to meet customer demands and achieve sales growth at lower costs [23] - Strengthening online and offline brand promotions to enhance brand influence is a key strategy for the Group [23] - The Group plans to further expand its sales scale to improve overall profitability [23] - The Group plans to continue focusing on new product development, aiming to shorten research and development cycles and meet customer demands [26] - The Group is enhancing its supply chain management by identifying high-quality suppliers to meet growing demand and reduce costs [42] - The Group is expanding its health products business across multiple sales channels in China, New Zealand, and Australia [27] Operational Efficiency - The Group is optimizing its logistics and transportation systems to improve inventory turnover efficiency [42] - Selling and distribution expenses increased by approximately 2.5% to approximately RMB 108.6 million, representing approximately 39.5% of the Group's revenue for the Year [59] - Administrative expenses decreased by approximately 9.0% to approximately RMB 63.9 million, representing approximately 23.3% of the Group's revenue for the Year [60] - Inventories increased by approximately 25.5% to approximately RMB 75.3 million, with inventory turnover days decreasing by approximately 6.6% to approximately 213 days [71] - Trade receivables increased by approximately RMB 2.0 million or approximately 7.6% to approximately RMB 28.2 million, mainly due to the expansion of distribution on business-to-business e-commerce platforms [72] - Trade payables increased by approximately RMB 5.8 million or approximately 36.9% to approximately RMB 21.5 million, driven by efforts to reserve raw materials in anticipation of increased product demand [73] Governance and Management - The board consists of 6 directors, including 3 executive directors and 3 independent non-executive directors, ensuring a balanced governance structure [97] - The chairman and executive director, Mr. Gui Pinghu, has over 20 years of experience in the nutritional supplements industry, contributing to the strategic development of the company [101] - The chief executive officer, Ms. Zhang Yuan, has also over 20 years of experience in the industry and is responsible for the management and implementation of board decisions [104] - The company regularly reviews its human resources and compensation policies to ensure compliance with market practices and regulatory requirements [95] - The company maintains competitive compensation and various benefits for all employees, aligning with industry standards [95] - The company has established four Board committees: Audit Committee, Remuneration Committee, Nomination Committee, and Strategy and Development Committee [163] Market Outlook and Future Plans - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% [132] - New product launches are expected to contribute an additional 300 million yuan in revenue over the next year [132] - The company is investing in new technology development, allocating 100 million yuan for R&D initiatives [132] - Market expansion plans include entering three new provinces, which are projected to increase market share by 10% [132] - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 500 million yuan for potential deals [132] - The company plans to enhance its online sales channels, aiming for a 40% increase in e-commerce revenue [132] - A new marketing strategy is being implemented, focusing on digital platforms, with an expected ROI of 150% [132] Risk Management - The Group faces risks related to the increase in prices of raw materials and packaging materials, which could adversely affect business if not offset by product price increases [91] - The Group's ability to respond to changing consumer preferences and introduce new products is critical for maintaining customer relationships and market share [93] - The Group's foreign exchange risk is primarily associated with purchases in foreign currencies, and fluctuations in the exchange rate could significantly impact profitability [92] - The Group has not implemented any hedging policies to manage foreign exchange risks, which are considered minimal, despite exposure to fluctuations in the New Zealand dollar, US dollar, and Australian dollar [79] Employee and Workforce - The total salaries and related costs for the year amounted to approximately RMB 71.9 million, an increase from approximately RMB 68.9 million in 2021, with the workforce growing from 279 employees in 2021 to 298 employees in 2022 [94] - The company has maintained good working relations with its staff and has not experienced significant problems with recruitment and retention of experienced employees [173] - The company is focused on providing comprehensive training and development for employees in the nutritional supplements sector [95] - The company has a commitment to continuous employee training and development, which is crucial for maintaining its competitive edge in the market [95] Financial Position - The Company's accumulated losses as of December 31, 2022, amounted to RMB 371.7 million [190] - The Board has resolved not to declare any final or special dividends for the year ended December 31, 2022 [180] - The Group did not have any outstanding borrowings or pledges of assets as of December 31, 2022, maintaining a debt-free position [80] - Total revenue attributable to the Group's five largest customers was less than 30%, with the largest customer accounting for less than 10% [193] - The Group's principal activities include manufacturing and sale of nutritional supplements and trading of packaged health food products in the PRC, Australia, and New Zealand [177] - The Company complied with relevant laws and regulations that significantly impact its business operations for the year ended December 31, 2022 [178]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對 因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 NANJING SINOLIFE UNITED COMPANY LIMITED* 南 京 中 生 聯 合 股 份 有 限 公 司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：3332） 截 至2022年12月31日 止 年 度 之 末 期 業 績 公 告 財務摘要 • 收益增加約9.0%至人民幣274.9百萬元（2021年：人民幣252.3百萬元）。 • 毛利增加約15.3%至人民幣160.0百萬元（2021年：人民幣138.8百萬元）。 • 本年度虧損減少約55.2%至人民幣14.2百萬元（2021年：虧損人民幣 31.7百萬元）。 • 每股虧損為人民幣1.51分（2021年：每股虧損人民幣3.35分）。 • 董事會不建議派付本年度之任何末期股息（2021年：無），亦不建議派 付任何特別股息（2021年：無）。 ...

Financial Performance - Revenue decreased by approximately 0.7% to approximately RMB 122.8 million compared to RMB 123.7 million in the first half of 2021[8] - Gross profit decreased by approximately 0.7% to approximately RMB 71.7 million compared to RMB 72.2 million in the first half of 2021[8] - Loss for the period decreased by approximately 24.6% to approximately RMB 5.2 million compared to a loss of approximately RMB 6.9 million in the first half of 2021[8] - Basic loss per share was approximately RMB 0.55 cent compared to RMB 0.73 cent in the first half of 2021[8] - The Group's revenue for the first half of 2022 was approximately RMB122.8 million, remaining stable compared to RMB123.7 million in the first half of 2021[30] - The Group recorded a loss of approximately RMB5.2 million, a decrease of approximately RMB1.7 million compared to a loss of RMB6.9 million in the first half of 2021[30] - The gross profit for the first half of 2022 was approximately RMB71.7 million, down from RMB72.2 million in the first half of 2021, with a stable gross profit margin of approximately 58.4%[36] - Revenue for the six months ended June 30, 2022, was RMB 122,760,000, a decrease of 0.77% compared to RMB 123,711,000 for the same period in 2021[97] - Gross profit for the same period was RMB 71,683,000, down from RMB 72,163,000, reflecting a slight decline in profitability[97] - Loss before tax improved to RMB 4,328,000, compared to a loss of RMB 6,834,000 in the prior year, indicating a reduction in losses by approximately 36.7%[97] - Total comprehensive loss for the period was RMB 1,716,000, significantly improved from RMB 5,774,000 in the previous year[97] - The net loss for the period was RMB 5,184,000, compared to a loss of RMB 6,867,000 in the same period of the previous year[101] Expenses and Cost Management - Selling and distribution expenses decreased by approximately RMB4.3 million to RMB46.2 million, representing a decrease of approximately 8.5% from RMB50.5 million in the first half of 2021[30] - Administrative expenses decreased by approximately RMB4.3 million to RMB29.6 million, a decrease of approximately 12.7% from RMB33.9 million in the first half of 2021[30] - Selling and distribution expenses decreased to RMB 46,208,000 from RMB 50,496,000, contributing to the reduction in overall losses[97] - The company reported a decrease in administrative expenses to RMB 29,571,000 from RMB 33,916,000, reflecting cost control measures[97] Cash Flow and Assets - Cash and cash equivalents decreased by approximately RMB10.3 million as of June 30, 2022, primarily due to a net cash outflow from operating activities of approximately RMB6.2 million[50] - Cash and cash equivalents as of June 30, 2022, were RMB 61,731,000, down from RMB 72,057,000 at the end of 2021[99] - Total assets decreased to RMB 384,942,000 from RMB 390,112,000 at the end of 2021, indicating a reduction of approximately 1.7%[99] - Net current assets were RMB 126,754,000, slightly down from RMB 127,879,000 at the end of 2021[99] - The company reported a net decrease in cash and cash equivalents of RMB 9,778,000 for the period[106] Inventory and Receivables - Inventories increased by approximately RMB11.9 million, amounting to RMB71.9 million as of June 30, 2022, compared to RMB60.0 million as of December 31, 2021[50] - Trade receivables slightly decreased to approximately RMB25.8 million as of June 30, 2022, from approximately RMB26.2 million as of December 31, 2021[53] - Trade payables increased by approximately RMB3.9 million to RMB19.6 million as of June 30, 2022, due to increased procurement of raw materials[54] - Total inventories as of 30 June 2022 amounted to RMB71,938,000, an increase from RMB59,983,000 as of 31 December 2021[174] - Trade receivables as of 30 June 2022 were RMB28,263,000, slightly down from RMB28,587,000 as of 31 December 2021, with an impairment allowance of RMB2,438,000[177] Share Capital and Dividends - The Board has resolved not to declare any interim dividend for the six months ended 30 June 2022, consistent with the first half of 2021[8] - As of June 30, 2022, the total issued shares of the Company were 946,298,370, with domestic shares at 673,828,770 and H shares at 272,469,600[74] - The issued and fully paid ordinary shares remained unchanged at 946,298,370 shares, with a total share capital of RMB 94,630,000 as of June 30, 2022[198] Market and Strategic Focus - The Group launched a total of 11 new products in the first half of 2022, including 1 Zhongsheng series product, 3 Good Health series products, and 7 Living Nature series products[32] - The Group continued to enhance its domestic distribution network and e-commerce platforms, collaborating with major platforms like Tmall International and JD.com[36] - Investments in marketing and promotion for the cross-border e-commerce business were increased to boost brand recognition[31] - The Group plans to focus on two business segments in the second half of 2022: cross-border e-commerce of nutritional supplements and offline distribution channels for maternity and child products[61] - The Group's strategy includes precise positioning of customer demands in segmented markets during new product development to improve performance[63] Economic and Industry Outlook - The global economic outlook for the second half of 2022 is challenged by factors such as the Ukraine crisis and COVID-19 resurgence, leading to risks of stagflation and recession[59] - The PRC market remains crucial for the industry, with factors like an aging population and increasing health awareness expected to drive long-term positive development[60] Compliance and Governance - The company complied with all code provisions as set out in the Corporate Governance Code for the six months ended June 30, 2022[85] - The Audit Committee, consisting of three independent non-executive Directors, reviewed the unaudited condensed consolidated interim results for the six months ended June 30, 2022[91] - The company adopted the Model Code for securities transactions and confirmed compliance by all Directors and Supervisors throughout the reporting period[85]

Financial Performance - Revenue decreased by approximately 14.9% to RMB 252.3 million (2020: RMB 296.5 million) [10] - Gross profit decreased by approximately 18.7% to RMB 138.8 million (2020: RMB 170.7 million) [11] - Loss for the year was approximately RMB 31.7 million (2020: Loss of RMB 49.6 million) [12] - Loss per share was RMB 3.35 cents (2020: Loss per share RMB 5.24 cents) [13] - The Board does not recommend the payment of any final or special dividend for the year (2020: Nil) [14] - The gross profit margin for the year was approximately 55.0% [19] - The net loss for the year showed improvement compared to previous years, decreasing from RMB 49.6 million in 2020 to RMB 31.7 million in 2021 [20] - The Group's revenue for the year was approximately RMB252.3 million, representing a decrease of approximately 14.9% from approximately RMB296.5 million in 2020 [56] - The Group recorded a loss of approximately RMB31.7 million for the year, a decrease of approximately 36.1% compared to a loss of approximately RMB49.6 million in 2020 [56] - The loss per share was approximately RMB3.35 cents, down from approximately RMB5.24 cents in 2020 [56] Product Development and Market Strategy - The company has not indicated any new product launches or technological advancements in the current report [23] - The Group launched a total of 14 new products during the year, including 3 Zhongsheng series products and 11 Good Health series products [48] - The Group is focusing on the development of maternal and infant product series for the PRC market in 2022 [32] - The Group aims to enhance the influence of the Good Health brand through cross-border e-commerce channels in target markets [32] - The Group has optimized its cost structure and is concentrating resources on two core businesses: nutritional supplements for young and middle-aged consumers and for infants and children [30] - The Group's ability to introduce new products in a timely manner is critical to avoid obsolescence and maintain competitive advantage [67] - The Group's success is dependent on accurately predicting consumer trends and preferences to introduce new products [67] Sales and Distribution - Revenue from the online call centers business decreased by approximately 88.8%, from approximately RMB26.9 million in 2020 to approximately RMB3.0 million for the year [56] - Sales through TV shopping channels decreased by approximately 49.6%, from approximately RMB67.1 million in 2020 to approximately RMB33.8 million for the year [56] - The Group continued to expand its local distribution network and e-commerce platforms in the Chinese market, collaborating with major platforms such as Tmall International and JD.com [51] - The Group's overseas sales platforms include a distribution network in countries such as the UK, Germany, and Australia [50] Cost Management and Expenses - The Group's selling and distribution expenses decreased by approximately 20.2% from approximately RMB132.9 million in 2020 to approximately RMB106.0 million for the Year, representing approximately 44.8% and 42.0% of the Group's revenue in 2020 and for the Year respectively [59] - The Group's administrative expenses decreased by approximately 9.5% from approximately RMB77.6 million in 2020 to approximately RMB70.2 million for the Year, representing approximately 26.2% and 27.8% of the Group's revenue in 2020 and for the Year respectively [59] - Other income and gains increased from approximately RMB12.7 million in 2020 to approximately RMB15.1 million for the year [56] Inventory and Receivables - The Group's inventories amounted to approximately RMB60.0 million as at 31 December 2021, a decrease of approximately 27.8% compared with approximately RMB83.1 million as at 31 December 2020 [63] - The inventory turnover period was approximately 228 days for the Year, decreasing by 23 days compared with 251 days in 2020, mainly due to the rapid turnover of the core product Modified Milk Powder with lactoferrin [63] - The Group's trade receivables amounted to approximately RMB26.2 million as at 31 December 2021, representing a decrease of approximately RMB6.8 million compared to approximately RMB33.0 million as at 31 December 2020 [63] - The Group's trade payables decreased by approximately RMB0.5 million to approximately RMB15.7 million as at 31 December 2021, compared to approximately RMB16.2 million as at 31 December 2020 [63] Management and Governance - The Company was established in May 1999 by Mr. Gui Pinghu, who has over 20 years of experience in the nutritional supplements industry [81] - Ms. Zhang Yuan was appointed as Chief Executive Officer on June 17, 2011, and has more than 20 years of experience in the industry [81] - The management team includes independent non-executive directors who contribute to the governance and strategic oversight of the Company [88] - The Company has established various board committees, including the Audit Committee, Remuneration Committee, Nomination Committee, and Strategy and Development Committee, to enhance governance [150][149][150] - The Remuneration Committee is responsible for reviewing and recommending remuneration packages for Directors and senior management [149] - The Strategy and Development Committee conducts research and submits proposals regarding long-term development strategies and material investment decisions [150] Employee and Labor Relations - As of December 31, 2021, the Group employed 279 employees, a decrease from 449 employees as of December 31, 2020 [68] - Total salaries and related costs for the year amounted to approximately RMB68.9 million, compared to approximately RMB72.8 million in 2020 [68] - The company has maintained good working relations with its staff, experiencing no significant issues in recruitment and retention of experienced employees [152] - The company is required to pay various social security funds for its employees in the PRC, including basic pension and medical insurance [152] - The company has not suffered from any material disruption of its normal business operations due to labor disputes or strikes [152] Environmental and Social Responsibility - The company is committed to environmental protection, actively managing and minimizing the environmental impacts of its operational activities [157] - The company aims to maximize energy conservation by promoting efficient resource use and adopting green technologies [157] - The Group is actively seeking to identify and manage its environmental impact, promoting effective resource use and adopting eco-friendly technologies [162] Shareholder Information - Mr. Gui Pinghu holds approximately 81.18% of the Domestic Shares and 2.37% of the H Shares of the Company [78] - Ms. Zhang Yuan has an interest of approximately 0.98% in Domestic Shares and 0.08% in H Shares [81] - The Company has not entered into any management contract with any individual or firm to manage any substantial part of its business during the year [177] - The report indicates that the company is compliant with the Securities and Futures Ordinance regarding substantial shareholders [196] - The document outlines the interests and short positions of shareholders holding 5% or more of the issued share capital [196]

Financial Performance - Revenue decreased by approximately 7.9% to approximately RMB123.7 million compared to RMB134.3 million in the first half of 2020[10] - Gross profit decreased by approximately 8.8% to approximately RMB72.2 million compared to RMB79.2 million in the first half of 2020[10] - Loss for the period was approximately RMB6.9 million, compared to a loss of approximately RMB6.2 million in the first half of 2020[10] - Basic loss per share was approximately RMB0.73 cent, compared to RMB0.65 cent in the first half of 2020[10] - The Group's revenue for the first half of 2021 decreased by approximately 7.9% to approximately RMB123.7 million, down from approximately RMB134.3 million in the first half of 2020[31] - The Group recorded a loss of approximately RMB6.9 million for the first half of 2021, an increase of approximately RMB0.7 million compared to a loss of approximately RMB6.2 million in the first half of 2020[34] - The gross profit decreased by approximately RMB7.0 million from approximately RMB79.2 million in the first half of 2020 to approximately RMB72.2 million in the first half of 2021[34] - The Group's income tax expense decreased from approximately RMB1.5 million in the first half of 2020 to approximately RMB0.03 million in the first half of 2021, representing a decrease of approximately RMB1.5 million[36] - The Group's cash and cash equivalents decreased by approximately RMB10.8 million as compared with 31 December 2020, mainly due to a net cash outflow from operating activities of approximately RMB6.0 million[38] - The Group's inventories amounted to approximately RMB77.0 million as at 30 June 2021, representing a decrease of approximately RMB6.1 million from approximately RMB83.1 million as at 31 December 2020[38] Operational Highlights - The Group launched a total of twenty-eight new products during the first half of 2021, including two Zhongsheng series products, twenty-two Good Health series products, and four Living Nature series products[31] - The Group continued to enhance its domestic distribution network and e-commerce platforms, collaborating with major platforms such as Tmall International and JD.com[34] - The overseas diversified sales platforms include a broad international distribution network in countries such as the United Kingdom, Germany, and Singapore[34] - The decrease in revenue was attributed to the disposal of Shanghai Hejian and a decline in sales of general trading products in TV shopping channels[34] - The Group's strategies focused on brand recognition and sales promotion through distributors and e-commerce channels to enhance market competitiveness[31] Shareholder Information - As of June 30, 2021, the total issued shares of the company were 946,298,370[59] - Mr. Gui Pinghu held 494,053,628 domestic shares, representing approximately 73.32% of the relevant class and 52.21% of the total share capital[54] - Ms. Wu Yanmei, as a beneficial owner, held 52,965,000 domestic shares, accounting for 7.86% of the relevant class and 5.60% of the total share capital[62] - The company had 673,828,770 issued domestic shares and 272,469,600 H shares as of June 30, 2021[59] - Hin Sang Group (International) Holding Co., Ltd. held 59,121,600 H shares, representing 21.70% of the relevant class and 6.25% of the total share capital[62] Financial Position - Total assets as of June 30, 2021, were RMB 414,761,000, down from RMB 449,731,000 at the end of 2020, indicating a decrease of 7.8%[77] - Total current assets decreased to RMB 191,581,000 from RMB 211,998,000, a decline of 9.6%[77] - Net assets as of June 30, 2021, were RMB 356,589,000, down from RMB 362,363,000, reflecting a decrease of 1.9%[77] - The Group's financial position shows a trend of decreasing financial assets and liabilities, which may impact future liquidity and operational strategies[167] Cash Flow and Expenses - For the six months ended June 30, 2021, net cash from operating activities was RMB (6,058,000), a decrease from RMB 15,587,000 in the same period of 2020[84] - Net cash used in investing activities was RMB (887,000), compared to RMB (7,985,000) in the prior year[84] - Net cash used in financing activities was RMB (2,352,000), significantly lower than RMB (23,920,000) in 2020[84] - Cash and cash equivalents at the end of the period were RMB 66,356,000, down from RMB 90,462,000 in the previous year[84] - Staff costs for the same period were RMB 30,654, down 7.5% from RMB 33,139 in the previous year[132] Governance and Compliance - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2021, consistent with the previous year[70] - The unaudited condensed consolidated interim results for the six months ended June 30, 2021, have been reviewed by the Audit Committee[70] - The Company has complied with all code provisions as set out in the Corporate Governance Code for the six months ended June 30, 2021[70] - The Company has confirmed that all Directors complied with the Model Code throughout the six months ended June 30, 2021[70] - The Company has established internal control and risk management systems in compliance with relevant regulations[69]

Financial Performance - Revenue decreased by approximately 8.1% to RMB296.5 million (2019: RMB322.6 million) [16] - Gross profit increased by approximately 8.9% to RMB170.7 million (2019: RMB156.8 million) [16] - Loss for the Year was approximately RMB49.6 million (2019: Loss of RMB194.7 million) [16] - Loss per share was RMB5.24 cents (2019: Loss per share RMB20.57 cents) [16] - The Group's revenue for the year was approximately RMB296.5 million, representing a decrease of approximately 8.1% from RMB322.6 million in 2019 [45] - The Group recorded a loss of approximately RMB49.6 million for the year, a significant decrease of approximately 74.5% compared to a loss of approximately RMB194.7 million in 2019 [53] - Other income and gains rose from approximately RMB8.7 million in 2019 to approximately RMB12.7 million for the Year [60] - Selling and distribution expenses decreased by approximately 28.3% from approximately RMB185.4 million in 2019 to approximately RMB132.9 million for the Year [62] - Administrative expenses decreased by approximately 8.9% from approximately RMB85.2 million in 2019 to approximately RMB77.6 million for the Year [62] - Other expenses decreased by approximately 78.2% from approximately RMB72.8 million in 2019 to approximately RMB15.9 million for the Year [62] - The accumulated losses of the Company as of December 31, 2020, amounted to RMB 277.2 million [172] Strategic Focus and Market Presence - The Group focused on enhancing the growth of maternity and child series products under the Good Health brand in the PRC's market [27] - The Group diversified its sales channels including distributors and e-commerce platforms [27] - COVID-19 increased public attention to health, boosting sales revenue from immune products and maternity and child products [28] - The Group maintained ongoing operation of its business and minimized the impact of COVID-19 [28] - The strategic plan has been focusing on the Good Health brand with preliminary results achieved in early 2020 [28] - The Group launched a total of 35 new products during the year, including 20 Good Health series products [47] - The Group is expanding its health products business in the PRC, New Zealand, and Australia [30] - The Group continues to cooperate with major e-commerce platforms such as Tmall International and JD.com to strengthen its market presence [48] Operational Efficiency and Cost Management - The Group's strategic adjustments in 2020 have begun to yield initial results, improving overall operational efficiency [45] - The Group aims to optimize supply chain management to enhance overall profitability [32] - Selling and distribution expenses and administrative expenses decreased by approximately 22.2% to approximately RMB60.2 million compared to 2019, although expenses as a percentage of revenue remained relatively high [71] - The Group invested approximately RMB2.6 million in capital expenditure during the year, a significant decrease from approximately RMB25.7 million in 2019 [75] Inventory and Cash Management - The Group's cash and cash equivalents decreased by approximately RMB30.4 million, with net cash inflow from operating activities of RMB16.4 million and net cash outflow from investing and financing activities of approximately RMB12.5 million and RMB34.1 million, respectively [73] - The Group's inventories decreased by approximately 7.5% to RMB83.1 million as at 31 December 2020, with an inventory turnover period of approximately 251 days, an increase of 30 days compared to 2019 [73] - Trade receivables amounted to approximately RMB33.0 million as at 31 December 2020, a decrease of approximately RMB11.4 million from RMB44.4 million in 2019, mainly due to reduced sales through TV shopping channels [73] - Trade payables increased by approximately RMB2.7 million to RMB16.2 million as at 31 December 2020, primarily due to the full utilization of credit terms granted by suppliers [73] Governance and Management - The board consists of 6 directors, including 3 executive directors and 3 independent non-executive directors [90] - The company has a strategic development committee chaired by Mr. Gui Pinghu [92] - The audit committee is chaired by Ms. Cai Tianchen, an independent non-executive director [90] - The Board of Supervisors currently consists of four members, including Ms. Yu Min, Ms. Wang Ping, Ms. Lu Jiachun, and Ms. Chen Xiu [119] - The Group has maintained good working relations with its staff and has not faced significant recruitment or retention issues [154] - The Group complies with relevant national and local labor and social welfare laws, including various social security funds for its employees in the PRC [155] Risks and Challenges - The Group is exposed to foreign exchange risk primarily due to purchases in Australian dollars and New Zealand dollars, which could significantly impact profitability [78] - The Group has not used any derivative contracts to hedge against foreign currency risk, leaving it vulnerable to exchange rate fluctuations [78] - An increase in the price of raw materials and packaging materials could adversely affect the Group's business operations [76] - There are risks associated with potential force majeure events, natural disasters, or epidemics that could restrict business activities and adversely affect operating results [82] Shareholding and Ownership - Mr. Gui Pinghu holds approximately 81.18% of the domestic shares and 2.37% of the H shares of the company [93] - Ms. Zhang Yuan owns about 0.98% of the domestic shares and 0.08% of the H shares [95] - Ms. Zhu Feifei has an interest of approximately 0.10% in the domestic shares [102] - As of December 31, 2020, Mr. Gui Pinghu holds 494,053,628 shares, representing 73.32% of domestic shares and 52.21% of total share capital [198] - Mr. Gui Pinghu's spouse holds 52,965,000 domestic shares, accounting for 7.86% of domestic shares and 5.60% of total share capital [198] - Ms. Zhang Yuan holds 6,599,550 domestic shares, which is 0.98% of domestic shares and 0.70% of total share capital [198] - Ms. Zhu Feifei holds 659,340 domestic shares, representing 0.10% of domestic shares and 0.07% of total share capital [198] - Ms. Yu Min also holds 659,340 domestic shares, equivalent to 0.10% of domestic shares and 0.07% of total share capital [198] Environmental and Social Responsibility - The Group aims to maximize energy conservation and minimize environmental impacts from its operations [161] - The Group is committed to identifying and managing its environmental impact, including upgrading lighting and air conditioning systems to improve operational efficiency [166] - The Group has complied with relevant laws and regulations that significantly impact its business operations for the year ended December 31, 2020 [160]

Financial Performance - Revenue decreased by approximately 11.8% to approximately RMB134.3 million compared to RMB152.2 million in the first half of 2019[14]. - Gross profit increased by approximately 5.7% to approximately RMB79.2 million, up from RMB74.9 million in the first half of 2019[14]. - Loss for the period was approximately RMB6.2 million, significantly improved from a loss of approximately RMB42.3 million in the first half of 2019[15]. - Basic loss per share was approximately RMB0.65 cent, compared to a loss per share of approximately RMB4.47 cents in the first half of 2019[15]. - The Group's revenue for the first half of 2020 was approximately RMB134.3 million, a decrease of approximately 11.8% from RMB152.2 million in the same period of 2019[46]. - The loss for the period significantly decreased to approximately RMB6.2 million, compared to a loss of approximately RMB42.3 million in the first half of 2019[46]. - The Group's gross profit increased by approximately 5.7% from approximately RMB74.9 million in the first half of 2019 to approximately RMB79.2 million for the six months ended 30 June 2020, with an average gross profit margin rising from approximately 49.2% to approximately 59.0%[48][51]. - Other income and gains rose from approximately RMB5.9 million in the first half of 2019 to approximately RMB7.8 million in the first half of 2020, mainly due to government grants and reversal of bad debt provision[49][51]. - Total comprehensive loss for the period was RMB (9,069,000), compared to RMB (41,725,000) in the same period last year, indicating a 78.3% improvement[99]. Cash Flow and Assets - Cash and cash equivalents decreased by approximately RMB17.1 million as of 30 June 2020, with net cash inflow from operating activities of approximately RMB15.6 million and net cash outflow from financing activities of approximately RMB23.9 million[57]. - Cash and cash equivalents decreased to RMB 90,462,000 from RMB 107,521,000, a decline of 16.0%[102]. - Total assets as of June 30, 2020, were RMB 496,271,000, down from RMB 542,720,000 at the end of 2019, representing a decrease of 8.6%[102]. - Net current assets increased slightly to RMB 152,806,000 from RMB 151,139,000, a growth of 1.1%[102]. - The net decrease in cash and cash equivalents was RMB (16,318,000) for the first half of 2020, compared to a decrease of RMB (68,601,000) in the same period of 2019[111]. - The company had cash and cash equivalents of RMB 90,462,000, reflecting a decrease of 32.1% year-over-year[111]. Inventory and Receivables - Inventories decreased to approximately RMB85.7 million as at 30 June 2020 from approximately RMB89.8 million as at 31 December 2019, with an inventory turnover period of approximately 286 days[58]. - Trade receivables amounted to approximately RMB28.6 million as at 30 June 2020, down from approximately RMB44.4 million as at 31 December 2019, due to decreased sales through TV shopping platforms and accelerated collection efforts[59]. - Trade payables increased to approximately RMB20.6 million as at 30 June 2020 from approximately RMB13.5 million as at 31 December 2019, with turnover days rising to approximately 55 days[60]. Market and Product Development - Revenue from the Good Health brand's maternity and child series products through domestic distributor channels increased by approximately 110% compared to the same period last year[37]. - The Group launched 13 new products in the Good Health series during the first half of 2020[43]. - The Group plans to launch several new products in the second half of 2020, including DHA Algal Oil Walnut Oil Complex and Marine Collagen Peptide Powder[43]. - The maternity series products under the Good Health brand have maintained rapid growth since entering the PRC market, with plans to strengthen cooperation with core domestic distributors[70]. - The Group plans to continue investing resources in marketing and promoting Good Health series products through domestic distributor channels and cross-border e-commerce platforms in the second half of 2020[70]. Governance and Compliance - The Company has complied with all code provisions as set out in the Corporate Governance Code for the six months ended June 30, 2020[95]. - The Audit Committee's primary responsibilities include reviewing and monitoring the financial reporting and internal control systems of the Company[96]. - The Company has adopted the Model Code for securities transactions, and all Directors confirmed compliance throughout the reporting period[95]. - The Company maintained compliance with the Model Code for Securities Transactions by Directors of Listed Issuers throughout the reporting period[83]. Shareholding and Equity - As of June 30, 2020, the total issued shares of the Company were 946,298,370, comprising 673,828,770 domestic shares and 272,469,600 H shares[84]. - Mr. Gui Pinghu held 487,344,238 domestic shares, representing approximately 72.32% of the domestic shares and 51.50% of the total share capital[76]. - The largest shareholder, Hin Sang Group (International) Holding Co., Ltd., held 59,121,600 H shares, representing 21.70% of the H shares and 6.25% of the total share capital[88]. - As of June 30, 2020, no Directors, supervisors, or their immediate family members had any interests or short positions in the shares and underlying shares of the Company, apart from those disclosed[84]. Challenges and External Factors - The COVID-19 pandemic impacted logistics and transportation, negatively affecting sales and delivery during the first half of 2020[38]. - The Group's revenue decreased by approximately 11.8% from approximately RMB152.2 million in the first half of 2019 to approximately RMB134.3 million for the six months ended 30 June 2020, primarily due to the impact of COVID-19 on logistics and sales from TV-shopping platforms[47][50].

Financial Performance - Revenue decreased by approximately 28.8% to RMB 322.6 million (2018: RMB 453.2 million) [8] - Gross profit decreased by approximately 37.0% to RMB 156.8 million (2018: RMB 249.0 million) [8] - Loss for the year was approximately RMB 194.7 million (2018: loss of RMB 112.8 million) [8] - Loss per share was RMB 20.57 cents (2018: loss per share RMB 11.92 cents) [8] - The Board does not recommend the payment of any final dividend (2018: Nil) [8] - The company experienced a significant decline in both revenue and gross profit compared to the previous year [11] - The financial performance indicates a challenging year for the company, with increased losses [8] - No special dividend was recommended for the year, reflecting the company's financial challenges [8] - The Group recorded a loss of approximately RMB 194.7 million in 2019, compared to a loss of approximately RMB 112.8 million in 2018 [40] - The Group's revenue for the year was approximately RMB 322.6 million, a decrease of approximately 28.8% from approximately RMB 453.2 million in 2018 [48] Market and Product Development - The global health product market reached US$ 266.7 billion in 2019, with China holding a market share of 21.8% and a volume of approximately US$ 58 billion [20] - The Group launched a total of 25 new products during the year, including 20 Good Health series products [42] - The Group aims to enhance market competitiveness by focusing on high-quality products and brand credibility, particularly through the Good Health brand [19] - The Company plans to increase investment in research and development, market promotion, and channel construction for maternity and child series products in 2020 [20] - Sales revenue of Hejian decreased by approximately 64% from 2018 to 2019 due to stricter government regulations and a shift in market focus from the elderly to the young and middle-aged demographic [66] Sales and Distribution - The Group's sales channels include distributors, TV shopping platforms, and e-commerce platforms, with partnerships established with major platforms like Tmall International and JD.com [43] - Sales from offline retail shops decreased by approximately 91.6%, from approximately RMB 86.6 million in 2018 to approximately RMB 7.3 million for the year [49] - Sales from online call centers decreased by approximately 65.3%, from approximately RMB 97.9 million in 2018 to approximately RMB 34.0 million for the year [49] - The Group's strategy includes continuous brand building and promotion through various sales channels to enhance brand recognition [41] - Sales revenue from distributors and TV shopping platforms increased, but their gross margins were lower than those from offline retail stores and online call centers, impacting overall gross margin [84] Expenses and Financial Management - Selling and distribution expenses decreased by approximately 17.8% from approximately RMB 225.6 million in 2018 to approximately RMB 185.4 million for the year, representing approximately 49.8% and 57.5% of the Group's revenue for 2018 and the year respectively [56] - Administrative expenses increased by approximately 6.8% from approximately RMB 79.8 million in 2018 to approximately RMB 85.2 million for the year, representing approximately 17.6% and 26.4% of the Group's revenue in 2018 and the year respectively [58] - Other income and gains decreased from approximately RMB 9.1 million in 2018 to approximately RMB 8.7 million for the year [51] - The Group recognized an impairment loss of intangible assets amounting to approximately RMB 36.1 million for the year [60] - The Group recorded an income tax expense of approximately RMB 13.1 million for the year, compared to an income tax credit of approximately RMB 14.3 million for 2018 [73] Cash Flow and Assets - The Group's cash and cash equivalents decreased by approximately RMB 93.9 million during the year, primarily due to a net cash outflow from operating activities of approximately RMB 68.1 million [82] - Inventories decreased by approximately 19.0% to RMB 89.8 million compared to RMB 110.9 million as of December 31, 2018, with inventory turnover days reduced to approximately 221 days [87] - Trade receivables decreased by approximately 23.1% to RMB 44.4 million, primarily due to reduced sales revenue for the year [87] - The Group's trade payables decreased by approximately 14.0% to RMB 13.5 million, with turnover days for trade payables increasing to 32 days [87] - Capital expenditure for the year was approximately RMB 25.7 million, down from RMB 39.1 million in 2018, focused on building the R&D center and equipment [89] Governance and Management - Mr. Gui Pinghu, aged 60, has been the Chairman and Executive Director since May 24, 1999, responsible for the strategic development of the Company [113] - Ms. Zhang Yuan, aged 50, appointed as Chief Executive Officer on June 17, 2011, holds approximately 0.98% of Domestic Shares and 0.08% of H Shares [115] - The Company has over 20 years of experience in the nutritional supplements industry, with key management holding significant shares [115] - The management team includes individuals with extensive backgrounds in various sectors, enhancing the Company's strategic capabilities [113] - The leadership team is committed to implementing Board decisions effectively, ensuring operational efficiency and growth [115] Environmental and Social Responsibility - The Group aims to maximize energy conservation by promoting efficient resource use and adopting green technologies [168] - The Group is committed to identifying and managing environmental impacts related to its operations, aiming to reduce such impacts [171] - The Group has maintained good working relations with its staff, experiencing no significant recruitment or retention issues [161] - The Group has not suffered any material disruption of its normal business operations due to labor disputes or strikes [161] - The Group is required to pay various social security funds for its employees in the PRC, including basic pension and medical insurance [162]