Summary of Key Points Core Viewpoint - As of May 6, a total of 55 stocks reached their 52-week highs, with notable performers including Shandong Molong (00568), Tokyo Central Auction (01939), and Andeli Juice (02218) showing significant increases in their high rates [1]. 52-Week Highs - Shandong Molong (00568) achieved a closing price of 5.020 with a peak of 5.250, marking a high rate of 185.33% - Tokyo Central Auction (01939) closed at 0.980, reaching a high of 3.180, resulting in a high rate of 112.00% - Andeli Juice (02218) closed at 16.000 with a peak of 23.950, reflecting a high rate of 87.11% - Other notable stocks include: - Crown Holdings (01872) with a high rate of 32.00% - Wutong International (00613) at 30.00% - Yao Cai Securities Financial (01428) at 10.47% [1]. 52-Week Lows - Madison Holdings (08057) recorded a closing price of 0.053, with a low of 0.050, reflecting a decline of 26.47% - China Classic Group (08281) closed at 0.060, reaching a low of 0.051, indicating a drop of 15.00% - Other companies experiencing significant declines include: - Zhongsheng United (03332) with a decline of 6.02% - Dingyi Group Investment (00508) at -5.88% - Derivative Group (06893) at -4.62% [2].

Financial Performance - Revenue increased by approximately 32.6% to RMB747.9 million (2023: RMB564.0 million) [21] - Gross profit increased by approximately 41.8% to RMB538.3 million (2023: RMB379.7 million) [21] - Profit for the Year was RMB34.6 million (2023: Profit of RMB52.6 million) [21] - Profit per share was RMB3.65 cents (2023: Profit per share RMB5.56 cents) [21] - The Group recorded a profit of approximately RMB 34.6 million for 2024, a decrease of approximately RMB 18.0 million from a profit of approximately RMB 52.6 million in 2023[46] - The gross profit increased by approximately 41.8% from approximately RMB 379.7 million in 2023 to approximately RMB 538.3 million in 2024, with a gross profit margin rising from 67.3% to 72.0%[53][57] - The Group recorded a foreign exchange loss of approximately RMB 18.5 million in 2024, compared to a gain of approximately RMB 1.7 million in 2023[63] - The effective tax rate increased from 9.5% in 2023 to 15.4% in 2024, primarily due to increased profits from one of the Group's subsidiaries[61][66] - The Group reported accumulated losses of RMB 284.5 million as of December 31, 2024[172] Dividends - The Board does not recommend the payment of any final dividend or special dividend for the Year (2023: Nil) [21] - The Group did not declare any final or special dividends for the year ended December 31, 2024[163] Market Strategy and Growth - The Company plans to expand its market presence and invest in new product development [22] - The Company is focusing on strategic acquisitions to enhance its competitive position [22] - The management anticipates continued growth in revenue and profitability in the upcoming fiscal year [22] - The focus on cross-border e-commerce for nutritional supplements under the Good Health brand contributed to rapid business growth[46] - The Group aims to achieve the goal of being the top seller in core product categories on e-commerce platforms[35] - The Group will expand its health products in multiple sales channels in the PRC, New Zealand, and Australia[32] - The Chinese consumer healthcare industry is experiencing high-quality and rapid development, driven by increasing health awareness among the large population[28] - The demand for high-quality imported healthcare products is growing, supported by the development of cross-border e-commerce platforms[28] - The younger generation's focus on appearance and healthy lifestyles is shifting market demand towards innovation and sustainability[31] Expenses and Cost Management - Selling and distribution expenses increased by approximately 63.4% from approximately RMB 250.0 million in 2023 to approximately RMB 408.6 million in 2024, representing 44.3% and 54.6% of the Group's revenue respectively[59][64] - Administrative expenses rose by approximately 22.7% from approximately RMB 72.2 million in 2023 to approximately RMB 88.6 million in 2024, accounting for 12.8% and 11.8% of revenue respectively[60][65] - The Group is committed to optimizing marketing and promotional expenses to improve overall profitability[35] Product Development - The Group launched a total of 26 new products in 2024, including 3 New Goodhealth series products and 22 Good Health series products[48][50] - The increase in revenue was primarily driven by significant growth in the Good Health brand's revenue from cross-border e-commerce platforms[52][56] - The nutritional supplements industry is characterized by rapid changes in demand for new products, necessitating constant innovation[89] Employee and Management Information - The Group employed 477 employees as of December 31, 2024, an increase from 349 employees as of December 31, 2023[90] - Total salaries and related costs for the year amounted to approximately RMB 120.8 million, up from approximately RMB 89.8 million in the previous year[90] - The Company has established various social security funds for its employees in the PRC, including pension and medical insurance[158] - The Company has appointed Mr. Ye Bangyin and Mr. Cheng Jianming as independent non-executive Directors effective from 23 October 2024[180] - Ms. Cai Tianchen and Mr. Wang Wei resigned as independent non-executive Directors effective from 22 October 2024 after serving for six years[180] Risk Factors - The Group faces risks related to the increase in prices of raw materials and packaging materials, which could adversely affect its business operations[82] - The Group is exposed to foreign currency risk primarily for purchases in USD, AUD, and NZD, which could significantly impact profitability due to fluctuations in exchange rates[89] - A depreciation of RMB could increase costs for purchasing products from Australia and New Zealand, requiring more RMB to obtain the equivalent foreign currency[89] - The Group has not used any derivative contracts to hedge against foreign currency risk, leaving it vulnerable to exchange rate fluctuations[89] - The success of new product offerings depends on accurately anticipating customer needs and timely commercialization[89] - Failure to introduce new products in a timely manner could lead to obsolescence and negatively affect operating results[89] - The Group's ability to maintain customer relationships and market share is contingent on its responsiveness to changing consumer preferences[89] Corporate Governance - The Company aims to ensure compliance with corporate governance practices as prescribed in the Listing Rules[145] - The Company has established four Board committees: Audit Committee, Remuneration Committee, Nomination Committee, and Strategy and Development Committee[145] - The Audit Committee assists the Board in reviewing financial information, risk management, and internal control systems[149] - The Remuneration Committee reviews and makes recommendations on the remuneration packages of individual Directors and senior management[150] - The Nomination Committee assesses the independence of independent non-executive Directors and makes recommendations on appointments[151] - The Strategy and Development Committee conducts research and submits proposals concerning long-term development strategies[152] Financial Position - Cash and cash equivalents decreased by approximately RMB 13.0 million during the year, with net cash inflow from operating activities of approximately RMB 1.0 million and net cash outflow from investing and financing activities of approximately RMB 6.0 million and RMB 4.5 million, respectively[69] - Inventories increased by approximately 9.4% to RMB 119.1 million as of December 31, 2024, compared to RMB 108.9 million in 2023, with inventory turnover days increasing by 15 days to approximately 196 days[70] - Trade receivables rose by approximately RMB 9.4 million or 28.9% to RMB 41.9 million as of December 31, 2024, driven by increased revenue from e-commerce channels[71] - Trade payables decreased by approximately RMB 20.3 million or 61.3% to RMB 12.8 million as of December 31, 2024, due to a reduction in raw material purchases[72] - The gearing ratio improved to approximately 18.7% as of December 31, 2024, down from 22.0% in 2023[79] - Capital expenditure for the year was approximately RMB 7.4 million, significantly higher than RMB 1.7 million in 2023, indicating increased investment in property, plant, and equipment[80] - The Group did not have any outstanding borrowings or pledges of assets as of December 31, 2024[78] - Revenue from the Group's five largest customers accounted for less than 30% of total revenue, with the largest customer contributing less than 10%[174]

Financial Performance - Revenue increased by approximately 32.6% to RMB 747.9 million (2023: RMB 564.0 million) [3] - Gross profit increased by approximately 41.8% to RMB 538.3 million (2023: RMB 379.7 million) [3] - Net profit for the year was RMB 34.6 million (2023: net profit RMB 52.6 million) [3] - Earnings per share for the year was RMB 3.65 (2023: earnings per share RMB 5.56) [3] - Total comprehensive income for the year amounted to RMB 16.0 million (2023: RMB 54.3 million) [4] - The company recorded a profit of approximately RMB 34.6 million in 2024, a decrease of approximately RMB 18.0 million from RMB 52.6 million in 2023 [43] Expenses and Costs - Selling and distribution expenses increased significantly to RMB 408.6 million (2023: RMB 250.0 million) [4] - Administrative expenses rose to RMB 88.6 million (2023: RMB 72.2 million) [4] - The group's operating profit before tax for 2024 was impacted by various costs, including cost of goods sold amounting to RMB 206,318,000, up from RMB 181,316,000 in 2023, which is an increase of about 13.8% [30] - The total tax expense for the year was RMB 6,320,000, compared to RMB 5,491,000 in 2023, representing an increase of approximately 15% [33] Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 505,419,000, while total assets for 2023 were RMB 505,557,000, indicating a slight decrease of 0.03% [5] - The total value of non-current assets increased from RMB 218,226,000 in 2023 to RMB 229,905,000 in 2024, reflecting a growth of approximately 5.5% [5] - Current assets totaled RMB 275,514,000 in 2024, compared to RMB 287,331,000 in 2023, showing a decline of about 4.1% [5] - The net value of current liabilities decreased from RMB 82,051,000 in 2023 to RMB 69,139,000 in 2024, representing a reduction of approximately 15.7% [6] - The total equity attributable to the parent company increased from RMB 378,069,000 in 2023 to RMB 394,096,000 in 2024, marking an increase of about 4.2% [6] - The company reported a decrease in non-current liabilities from RMB 45,299,000 in 2023 to RMB 42,322,000 in 2024, which is a decline of approximately 6.5% [6] - The company’s total liabilities decreased from RMB 436,418,000 in 2023 to RMB 423,368,000 in 2024, showing a reduction of about 3% [6] Cash Flow and Investments - Cash and cash equivalents increased from RMB 104,530,000 in 2023 to RMB 117,556,000 in 2024, indicating a growth of about 12.5% [5] - The group invested approximately RMB 7.4 million in capital expenditures during the year, compared to RMB 1.7 million in 2023 [61] Market and Operations - The company operates primarily in China, Australia, and New Zealand, focusing on the manufacturing and sales of nutritional dietary supplements and health foods [8] - The group operates a single reportable segment focused on manufacturing and selling nutritional supplements and packaged health foods in China, Australia, and New Zealand [23] - Revenue from the Chinese market was RMB 623,538,000 in 2024, up from RMB 432,391,000 in 2023, representing a growth of 44.2% [25] - Revenue from New Zealand decreased to RMB 100,103,000 in 2024 from RMB 113,712,000 in 2023, a decline of 11.3% [25] - Revenue from Australia increased to RMB 8,411,000 in 2024 from RMB 4,701,000 in 2023, showing a growth of 78.0% [25] Financial Reporting Standards - The company has not experienced any impact on its financial position or performance due to the amendments to the Hong Kong Financial Reporting Standards since the initial application date [11] - The amendments clarify the classification of liabilities as current or non-current, ensuring that the classification remains unchanged after the initial application of the amendments [12] - The company does not have any supplier financing arrangements, thus the amendments regarding supplier financing do not impact its financial statements [12] - The group has confirmed that there are no variable lease payments affecting its financial situation [11] - The amendments are expected to have no significant impact on the company's financial statements [18] Corporate Governance - The company has adopted the corporate governance code and has complied with all applicable principles and provisions during the year [71] - The audit committee has been established and is responsible for reviewing and supervising financial reporting procedures and risk management [72] - The financial statements for the year have been reviewed and confirmed by Ernst & Young, ensuring consistency with the group's audited financial results [73] Future Outlook - The group plans to focus on developing cross-border e-commerce and optimizing promotional strategies for its e-commerce platform in 2024 [64] - The group anticipates further growth in e-commerce revenue due to the expansion of its e-commerce channels [56] - The company aims to achieve the goal of being the top seller in its e-commerce platform's core product category [69] - The company plans to enhance supply chain management by developing quality suppliers and improving production capacity to meet customer demand [69]

Financial Performance - Revenue increased by approximately 69.1% to approximately RMB 370.2 million (First half of 2023: approximately RMB 218.9 million) [3] - Gross profit increased by approximately 84.2% to approximately RMB 268.7 million (First half of 2023: approximately RMB 145.9 million) [3] - Profit for the period was approximately RMB 33.4 million (First half of 2023: profit of approximately RMB 27.8 million) [3] - Basic earnings per share was approximately RMB 3.53 cents (First half of 2023: earnings per share approximately RMB 2.94 cents) [3] - The Group recorded profits of approximately RMB33.4 million in the first half of 2024, an increase of approximately RMB5.6 million or 20.1% compared to RMB27.8 million in the first half of 2023 [12] - The earnings per share for the first half of 2024 was approximately RMB3.53 cents, compared to approximately RMB2.94 cents in the first half of 2023 [12] - Profit before tax increased to RMB 40,333,000, a 35% rise compared to RMB 29,855,000 in the prior year [68] - Profit for the period was RMB 33,409,000, reflecting a 20% increase from RMB 27,822,000 in the previous year [68] Expenses and Costs - Selling and distribution expenses amounted to approximately RMB186.3 million in the first half of 2024, an increase of approximately RMB101.2 million or 118.9% compared to RMB85.1 million in the first half of 2023 [20] - Administrative expenses increased to approximately RMB37.4 million in the first half of 2024, up approximately RMB6.8 million or 22.2% from RMB30.6 million in the first half of 2023 [21] - The proportion of selling and distribution expenses to sales revenue increased to approximately 50.3% in the first half of 2024 from approximately 38.9% in the first half of 2023, an increase of 11.4% [20] - Staff costs (excluding key management personnel) increased to RMB 46,473,000 from RMB 29,612,000, marking a 56.8% rise year-on-year [98] - The total compensation paid to key management personnel increased to RMB 5,269,000 for the six months ended June 30, 2024, compared to RMB 4,325,000 for the same period in 2023, reflecting an increase of about 21.8% [130] Product Development and Market Expansion - The company continues to expand its product line, including new health supplements such as Propolis Capsules and Omega 3 Fish Oil Capsules [4][5][6][7][8] - The company is focusing on market expansion strategies to enhance its presence in the health supplement sector [3] - The company is investing in research and development for new products to meet consumer demand [3] - The Group launched a total of 20 new products in the first half of 2024, including 3 New Goodhealth series products, 15 Good Health series products, and 2 Living Nature series products [11] - The Group aims to strengthen research and development efforts to minimize the R&D cycle and launch more new products to meet customer demands [40] Financial Position and Assets - Total assets as of June 30, 2024, amounted to RMB 547,953,000, up from RMB 505,419,000 at the end of 2023 [69] - Current assets increased to RMB 318,366,000, compared to RMB 275,514,000 at the end of 2023, indicating a growth of 15.5% [69] - Net current assets reached RMB 225,303,000, an increase from RMB 193,463,000 at the end of 2023 [69] - Total equity attributable to owners of the parent was RMB 408,955,000, up from RMB 378,069,000 at the end of 2023 [69] - The Group's inventories increased to approximately RMB 165.8 million as of June 30, 2024, up approximately RMB 56.9 million or 52.2% from RMB 108.9 million as of December 31, 2023 [28] - Trade receivables rose to approximately RMB 48.2 million as of June 30, 2024, an increase of approximately RMB 15.7 million or 48.3% from RMB 32.5 million as of December 31, 2023 [29] - Trade payables increased to approximately RMB 49.8 million as of June 30, 2024, up approximately RMB 16.7 million or 50.5% from RMB 33.1 million as of December 31, 2023 [34] Cash Flow and Liquidity - The Group experienced a net cash outflow from operating activities of approximately RMB 32.3 million as of June 30, 2024 [27] - The net cash used in operating activities for the first half of 2024 was RMB 32,287,000, compared to RMB 10,125,000 for the same period in 2023, indicating a significant increase in cash outflow [72] - The company reported a net decrease in cash and cash equivalents of RMB 39,694,000 for the six months ended June 30, 2024, compared to a decrease of RMB 12,829,000 in the prior year [72] - Cash and cash equivalents decreased to RMB 76,978,000 as of June 30, 2024, down from RMB 117,556,000 as of December 31, 2023, indicating a reduction of approximately 34.5% [121] Governance and Compliance - The company has appointed new authorized representatives to strengthen its governance structure [2] - The Company maintained compliance with the Securities and Futures Ordinance regarding the interests and short positions of its Directors and Supervisors [47] - The Company has complied with the Corporate Governance Code for the six months ended June 30, 2024 [57] - All Directors and Supervisors confirmed compliance with the Model Code throughout the six months ended June 30, 2024 [56] Shareholder Information - As of June 30, 2024, the total number of issued shares of the Company was 946,298,370 [47] - Mr. Gui Pinghu held 494,605,108 Domestic Shares, representing approximately 73.40% of the Domestic Shares and 52.27% of the total share capital [46] - The number of issued Domestic Shares and H Shares as of June 30, 2024, was 673,828,770 and 272,469,600 respectively [49] - Ms. Zhang Yuan held 6,599,550 Domestic Shares, which is approximately 0.98% of the Domestic Shares and 0.70% of the total share capital [46] - As of June 30, 2024, no Directors, Supervisors, or chief executives had any rights to acquire shares or debentures of the Company [48] Market Conditions and Future Outlook - The global economy is expected to maintain a stable growth trajectory in the second half of 2024, despite uncertainties such as geopolitical conflicts and trade tensions [39] - The Group plans to optimize marketing strategies in live streaming and digital marketing to enhance the influence of the Good Health brand in the second half of 2024 [40] - The Group will enhance supply chain management to improve production capacity and reduce production and procurement cycles [40]

Financial Performance - Revenue increased by approximately 69.1% to approximately RMB 370.2 million for the first half of 2024, compared to RMB 218.9 million in the same period of 2023[2] - Gross profit rose by approximately 84.2% to approximately RMB 268.7 million, up from RMB 145.9 million in the first half of 2023[2] - Profit for the period was approximately RMB 33.4 million, compared to RMB 27.8 million in the same period of 2023[2] - Basic earnings per share were approximately RMB 3.53, an increase from RMB 2.94 in the first half of 2023[2] - The group's total revenue for the six months ended June 30, 2024, was RMB 370,189 thousand, compared to RMB 218,930 thousand in 2023, indicating an overall increase of approximately 69%[12] - The gross margin for the first half of 2024 was approximately 72.6%, up from 66.6% in the first half of 2023, an increase of 6.0%[28] - The company recorded a profit of approximately RMB 33.4 million in the first half of 2024, an increase of approximately RMB 5.6 million or 20.1% compared to RMB 27.8 million in the first half of 2023[26] Assets and Liabilities - Total assets amounted to RMB 547.953 million as of June 30, 2024, compared to RMB 505.419 million as of December 31, 2023[5] - Current assets increased to RMB 318.366 million from RMB 275.514 million as of December 31, 2023[5] - Non-current liabilities totaled RMB 45.935 million, compared to RMB 45.299 million as of December 31, 2023[6] - Trade receivables increased to RMB 48.226 million from RMB 32.511 million as of December 31, 2023[5] - Trade payables as of June 30, 2024, were approximately RMB 49.8 million, an increase of approximately RMB 16.7 million or 50.5% from RMB 33.1 million on December 31, 2023[37] Inventory and Expenses - Inventory rose to RMB 165.818 million, up from RMB 108.861 million in the previous year[5] - Sales and distribution expenses for the first half of 2024 were approximately RMB 186.3 million, an increase of approximately RMB 101.2 million or 118.9% from RMB 85.1 million in the first half of 2023[30] - Administrative expenses for the first half of 2024 were approximately RMB 37.4 million, an increase of approximately RMB 6.8 million or 22.2% from RMB 30.6 million in the first half of 2023[31] - The total income tax expense for the six months ended June 30, 2024, was RMB 6,924 thousand, compared to RMB 2,033 thousand for the same period in 2023, marking an increase of about 240.5%[17] Revenue Sources - For the six months ended June 30, 2024, the group's revenue from Mainland China was RMB 304,902 thousand, a significant increase from RMB 159,917 thousand for the same period in 2023, representing an increase of approximately 90.5%[12] - Revenue from New Zealand for the same period was RMB 52,862 thousand, up from RMB 50,411 thousand in 2023, reflecting a growth of about 4.9%[12] Corporate Governance and Compliance - The financial statements for the six months ended June 30, 2024, were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance and consistency with previous reporting periods[8] - The audit committee, consisting of three independent non-executive directors, has reviewed the interim results for the six months ended June 30, 2024[46] - The board has resolved not to declare any interim dividend for the six months ended June 30, 2024, consistent with the previous year[2] Future Outlook and Strategy - The company plans to continue optimizing its promotional strategies for cross-border e-commerce platforms and enhance brand influence in the second half of 2024[41] - The company aims to increase new product development and shorten the R&D cycle to meet customer demands in the upcoming period[41] - The overall economic growth in the second half of 2024 is expected to remain stable, with emerging markets like China and India playing a key role in economic development[40] Employee and Operational Metrics - As of June 30, 2024, the total salary and related costs amounted to approximately RMB 51.7 million, compared to RMB 33.9 million for the same period in 2023, reflecting a year-on-year increase of about 52.5%[42] - The company employed a total of 442 employees, including 308 in China, 131 in New Zealand, and 3 in Australia as of June 30, 2024[42]

Financial Proceeds - The net proceeds from the company's shares listed on the Stock Exchange and the issuance of over-allotment shares amounted to approximately HKD 428.7 million (equivalent to RMB 336.4 million) as of December 31, 2023[4]. Research and Development - Approximately HKD 123.7 million is allocated for establishing a research and development testing center, with an expected full utilization by mid-2025[5]. Capacity Enhancement - Around HKD 94.9 million is designated for future capacity enhancement of the group, also expected to be fully utilized by mid-2025[5]. Information Technology and Logistics - Approximately HKD 25.7 million is planned for the establishment of an information technology and logistics control center, with full utilization expected by mid-2025[8]. Remaining Proceeds - The remaining unutilized net proceeds amount to approximately RMB 4.5 million, which the company plans to fully utilize by mid-2025[10].

Financial Performance - Revenue increased by approximately 105.2% to RMB564.0 million (2022: RMB274.9 million) [17] - Gross profit increased by approximately 137.3% to RMB379.7 million (2022: RMB160.0 million) [17] - Profit for the Year was RMB52.6 million (2022: Loss of RMB14.2 million) [17] - Profit per share was RMB5.56 cents (2022: Loss per share RMB1.51 cents) [17] - The Group's revenue for 2023 amounted to approximately RMB 564.0 million, representing an increase of approximately 105.2% compared to approximately RMB 274.9 million in 2022 [37] - The Group recorded a profit of approximately RMB 52.6 million for 2023, turning a loss of approximately RMB 14.2 million in 2022 into profit [37] - The Group's gross profit increased by approximately 137.3% from approximately RMB160.0 million in 2022 to approximately RMB379.7 million for the Year, with a gross profit margin increase from approximately 58.2% in 2022 to approximately 67.3% for the Year [49] - The Group's accumulated losses as of December 31, 2023, amounted to RMB 319.1 million [178] Strategic Focus and Development - The Group focused on supply chain management and various sales strategies to enhance the Good Health brand [21] - The Group plans to enhance brand influence through optimized promotional strategies in 2024, including live streaming and digital marketing [26] - The Group aims to continue increasing R&D efforts for new products, shortening development cycles to meet customer needs [26] - The Group will expand its sales revenue scale and optimize promotional cost-to-revenue ratios to improve overall profitability [26] - The Group's strategic focus remains on promoting the Good Health brand across multiple sales channels in China, New Zealand, and Australia [27] - The Group's key business segments, cross-border e-commerce platforms and infant and child series products, experienced rapid development [37] Marketing and Sales - In 2024, the Group plans to optimize marketing strategies in live streaming and digital marketing [23] - The Group will expand sales revenue while optimizing marketing costs to improve overall profitability [23] - The Group's promotional efforts for the Good Health brand were intensified, leading to increased sales revenue [48] - The Group established several brand-owned streaming accounts on prominent e-commerce platforms, laying the foundation for future development [46] Operational Efficiency - The Group focused on supply chain management, boosting production capacity and improving inventory turnover efficiency to meet growing demands [38] - The Group aims to enhance production capacity to meet customer demand in a timely manner [23] - Inventory turnover days decreased to approximately 181 days from 213 days in 2022, reflecting faster turnover from expanded e-commerce channels [68] - Trade receivables increased by approximately RMB4.3 million or 15.2% to approximately RMB32.5 million, attributed to the expansion of distribution on business-to-business e-commerce platforms [69] - Trade payables increased by approximately RMB11.6 million or 54.0% to approximately RMB33.1 million, driven by a significant increase in production volume to meet high demand from Chinese customers [74] Research and Development - The Group will strengthen research and development efforts to minimize the product development cycle [23] - The Group launched a total of 15 new products during the Year, including various health-related items such as Elderberry Flavored Drink and Vira-Complex Powder [44] Financial Position and Liquidity - Cash and cash equivalents increased by approximately RMB44.2 million, driven by a net cash inflow from operating activities of approximately RMB47.1 million [67] - The Group did not have any outstanding borrowings or pledges of assets as of December 31, 2023, indicating a strong liquidity position [76] - The gearing ratio improved slightly to approximately 22.0% as of December 31, 2023, down from 23.3% in 2022, indicating a stable financial position [77] Human Resources and Management - The Group's workforce increased to 349 employees as of December 31, 2023, up from 298 employees in the previous year [90] - Total salaries and related costs for the year amounted to approximately RMB 89.8 million, compared to approximately RMB 71.9 million in 2022, reflecting a significant increase [90] - The Company has a strong management team with diverse backgrounds in finance, human resources, and food science [123] Corporate Governance - The Company emphasizes corporate governance practices in accordance with PRC laws and regulations [148] - The Company has received confirmations of independence from all independent non-executive Directors [200] - The Directors' remuneration is approved at the Annual General Meeting (AGM) [197] - The Audit Committee assists the Board in reviewing financial information, risk management, and internal control systems [149] Risks and Challenges - The Group's products are affected by rising prices of raw materials and packaging materials, which could impact competitiveness if costs increase significantly [88] - The Group's ability to respond to changing consumer preferences is critical; failure to introduce new products could harm customer relationships and market share [88] - The Group faces potential adverse effects on business operations from future occurrences of force majeure events or natural disasters [88] - The Group's profitability may be significantly impacted by external factors such as political and economic conditions affecting currency values [89]

Financial Performance - Total comprehensive income for the year ended December 31, 2023, was RMB 54,269,000, compared to a loss of RMB 6,446,000 in 2022, indicating a significant recovery[3]. - The company's net profit attributable to shareholders for the year was RMB 52,602,000, a turnaround from a loss of RMB 14,246,000 in the previous year[3]. - Basic and diluted earnings per share for the year were 5.56 cents, compared to a loss of 1.51 cents per share in 2022[3]. - The company recorded a profit of approximately RMB 52.6 million in 2023, recovering from a loss of approximately RMB 14.2 million in 2022[62]. - The profit for the year was RMB 52.6 million (2022: loss of RMB 14.2 million) [145]. Revenue Growth - Total revenue for the year reached RMB 563,959,000, a substantial increase from RMB 274,851,000 in 2022, reflecting a growth of approximately 105.5%[16]. - Revenue for 2023 reached RMB 563,959 thousand, a significant increase from RMB 274,851 thousand in 2022, representing a growth of approximately 105.5%[31]. - The company achieved revenue of approximately RMB 564.0 million in 2023, an increase of about 105.2% compared to RMB 274.9 million in 2022[51]. - Revenue from mainland China was RMB 432,391,000, significantly up from RMB 172,670,000 in 2022, representing an increase of about 150.0%[16]. - Revenue from recognized sales of goods for the year 2023 amounted to RMB 13,923 thousand, a significant increase from RMB 4,689 thousand in 2022, representing a growth of approximately 196%[161]. Cost and Profitability - The cost of goods sold for 2023 was RMB 181,316 thousand, up from RMB 111,798 thousand in 2022, indicating a rise of about 62.1%[32]. - The gross profit margin improved, with gross profit for 2023 calculated as RMB 382,643 thousand compared to RMB 163,053 thousand in 2022, reflecting an increase of approximately 134.9%[31]. - The company's gross profit increased from approximately RMB 160.0 million in 2022 to approximately RMB 379.7 million in 2023, representing a growth of about 137.3%[103]. - The gross profit margin improved from approximately 58.2% in 2022 to approximately 67.3% in 2023, driven by higher margins from the cross-border e-commerce platform[103]. Expenses and Investments - Sales and distribution expenses increased by approximately 130.2% from RMB 108.6 million in 2022 to approximately RMB 250.0 million in 2023, representing 44.3% of total revenue[60]. - The company reported a significant increase in administrative expenses to RMB 72.2 million (2022: RMB 63.9 million) [147]. - The company invested approximately RMB 0.05 million in the construction of R&D centers, factories, and equipment in 2023, down from approximately RMB 1.4 million in 2022[114]. Assets and Liabilities - Non-current assets totaled RMB 184,362,000, down from RMB 198,090,000 in the previous year[15]. - The total assets of the group amounted to RMB 505,419,000 in 2023, compared to RMB 436,987,000 in 2022, indicating a growth of about 15.6%[135]. - Trade receivables amounted to RMB 35.5 million in 2023, up from RMB 30.9 million in 2022, with a net value of RMB 32.5 million[47]. - Trade payables increased to approximately RMB 33.1 million as of December 31, 2023, from approximately RMB 21.5 million as of December 31, 2022, marking an increase of about 54.0%[112]. Strategic Initiatives - The company is focusing on market expansion and new product development as part of its strategic initiatives moving forward[1]. - The company plans to leverage influencer marketing and new media platforms for product promotion, which is crucial for future product development[54]. - The company focused on enhancing brand awareness through various sales channels, including e-commerce platforms and distributors[52]. - The company continues to expand its international distribution network, including partnerships with major pharmacies and health product supermarkets in various countries[54]. - The group plans to continue executing its established strategic objectives in 2024, focusing on optimizing promotional strategies and enhancing brand influence through digital marketing[118]. Compliance and Governance - The group confirmed compliance with corporate governance codes and standards throughout the year[121]. - The company adopted revised Hong Kong Financial Reporting Standards for the first time this year, which may impact future financial reporting[7]. - The group anticipates that the amendments to the Hong Kong Financial Reporting Standards will not have a significant impact on its financial statements[155]. Other Income and Gains - Other income and gains rose from approximately RMB 7.9 million in 2022 to approximately RMB 8.5 million in 2023, mainly due to a slight increase in government subsidies[59]. - Government grants received increased to RMB 1,489 thousand in 2023 from RMB 434 thousand in 2022, reflecting a growth of about 243%[161]. - The total other income and gains for the year 2023 was RMB 8,474 thousand, compared to RMB 7,910 thousand in 2022, showing an increase of about 7.1%[161].

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） ...