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 會 就 本 公 告 全 部或任何部分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。 Zhongzhi Pharmaceutical Holdings Limited 中智藥業控股有限公司 （於 開 曼 群 島 註 冊 成 立 之 有 限 公 司） （股份代號：3737） 截至二零二五年六月三十日止六個月之 中期業績 財 務 摘 要： 本集團截至二零二五年六月三十日止六個月的收益約為人民幣880.5百 萬 元，與 截 至 二 零 二 四 年 六 月 三 十 日 止 六 個 月 相 較 減 少19.1%。 本集團截至二零二五年六月三十日止六個月的毛利約為人民幣482.5百 萬 元，與 截 至 二 零 二 四 年 六 月 三 十 日 止 六 個 月 相 較 減 少23.0%。毛 利 率 與 截 至 二零二四年六月三十日止六個月相較減少2.8個百分點至約54.8%。 母公司擁有人應佔利潤約為人民幣8.8百 萬 元，與 截 至 二 零 二 ...

Zhongzhi Pharmaceutical Holdings Limited 中智藥業控股有限公司 （於 開 曼 群 島 註 冊 成 立 之 有 限 公 司） （股 份 代 號：3737） 董事名單與其角色和職能 本公司董事會（「董事會」）成 員 載 列 如 下： 江麗霞女士 獨立非執行董事 吳冠雲先生 朱上恒先生 周岱翰先生 董 事 會 下 設 三 個 常 設 董 事 委 員 會。下 表 提 供 若 干 董 事 會 成 員 於 該 等 董 事 委 員 會 中 所 擔 任 的 職 位： | | 董事委員會 | 審核委員會 | 薪酬委員會 | 提名委員會 | | --- | --- | --- | --- | --- | | 董 事 | | | | | | 賴智填先生 | | | M | | | 賴穎豐先生 | | | M | M | | 江麗霞女士 | | | | M | | 吳冠雲先生 | | C | M | M | | 朱上恒先生 | | M | C | C | | 周岱翰先生 | | M | M | M | 附 註： 執行董事 賴智填先生 （董 事 會 主 席） 賴穎豐先生 賴穎盛先生 曹曉俊先生 ...

Core Viewpoint - 中智药业预计其截至2025年6月30日的中期纯利将同比下降约90% [1] Group 1: Company Announcement - 中智药业将于2025年8月26日举行董事会会议，考虑并批准截至2025年6月30日的未经审核中期业绩 [1] - 董事会会议还将讨论派发中期股息的事宜（如有） [1]

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 會 就 本 公 告 全 部或任何部分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。 中智藥業控股有限公司 中智藥業控股有限公司 主席兼執行董事 Zhongzhi Pharmaceutical Holdings Limited （於 開 曼 群 島 註 冊 成 立 之 有 限 公 司） （股份代號：3737） 董事會會議通知 中智藥業控股有限公司（「本公司」）董事會（「董事會」）謹 此 宣 佈，本 公 司 將 於 二 零二五年八月二十六日（星 期 二）假座香港新界荃灣海盛路9號有線電視大樓15 樓10B室 舉 行 董 事 會 會 議，以（其 中 包 括）考慮及批准本公司及其附屬公司截至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 之 未 經 審 核 中 期 業 績，以 及 派 發 中 期 股 息（如 有）。 承董事會命 賴智填先生 香 港，二 零 二 五 年 八 月 十 四 日 於本公告日期，董事會由八名董事組成。執行董 ...

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 本月底法定/註冊股本總額： HKD 15,600,000 第 1 頁 共 10 頁 v 1.1.1 致：香港交易及結算所有限公司 公司名稱: 中智藥業控股有限公司 (於開曼群島註冊成立的有限公司) 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 03737 | 說明 | 中智藥業 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 1,560,000,000 | HKD | | 0.01 HKD | | | 15,600,000 | | 增加 / 減少 (-) | | | | | | HKD | | | ...

Financial Performance - The company's revenue increased by approximately 8.0% to about RMB 2,214.8 million for the year ended December 31, 2024[21]. - Profit attributable to equity holders of the parent decreased by approximately 41.5% to RMB 95.2 million[22]. - Pharmaceutical segment revenue grew by approximately 14.7% to RMB 1,624.3 million, accounting for 73.3% of total revenue[25]. - The retail pharmacy segment revenue declined by approximately 6.9% to RMB 590.5 million, representing 26.7% of total revenue[24]. - The annual gross profit increased by RMB 70.3 million or 5.8% to RMB 1,288.4 million for the year ended December 31, 2024, compared to RMB 1,218.1 million in 2023[28]. - The gross profit margin for the pharmaceutical segment decreased to 66.2% in 2024 from 69.0% in 2023, primarily due to changes in product mix[28]. - The gross profit for the retail pharmacy segment declined by 12.0% to RMB 212.3 million in 2024 from RMB 241.2 million in 2023, with a gross profit margin of 36.0%[29]. - Other income and gains decreased by approximately RMB 13.0 million to RMB 38.5 million in 2024, mainly due to reduced government subsidies[32]. - Selling and distribution expenses increased by approximately 11.3% to RMB 988.7 million in 2024, accounting for 44.6% of revenue[33]. - Research and development expenses rose by approximately 14.1% to RMB 57.0 million in 2024, attributed to increased external R&D costs[35]. - The profit attributable to equity holders of the parent decreased by 41.5% to RMB 95.2 million for the year ended December 31, 2024, with a net profit margin of 4.3%[38]. Strategic Focus and Development - The company plans to focus on the high-quality development opportunities in the biopharmaceutical industry in 2025[15]. - The company is expanding its product offerings, including traditional Chinese medicine and health products, to meet consumer demand[14]. - The modern Chinese medicine production park has been completed and is operational, showcasing new production capabilities[14]. - The company aims to enhance customer engagement through AI health self-testing devices and traditional Chinese medicine services[17]. - The company is committed to increasing market share and service quality to drive overall performance growth[18]. - The company is exploring new strategies to integrate health and wellness into daily life through herbal health products[17]. - The company aims to enhance its production capacity for traditional Chinese medicine to capture market share, anticipating continued growth in demand for its products[50]. Human Resources and Management - The total number of employees as of December 31, 2024, is 2,577, a decrease from 2,643 in 2023, with total compensation amounting to RMB 331.9 million, up from RMB 323.9 million in 2023[47]. - The company has adopted a competitive yet reasonable remuneration policy for directors to attract and retain qualified individuals[48]. - The total employee compensation includes salaries, retirement plan contributions, and other benefits, reflecting individual performance and industry standards[47]. - The company has no defined benefit plans as of the reporting period[49]. - The company appointed Mr. Lai Ying-sheng as Executive Director and CFO on March 24, 2022, who has been with the group since October 1, 2018[64]. - Mr. Cao Xiao-jun, with over 25 years of experience in the pharmaceutical industry, has been overseeing business development and sales activities since joining the group in March 2010[65]. - Ms. Jiang Li-xia, a non-executive director, has been with the group since February 24, 2009, and is responsible for overseeing business management and human resources[66]. - Mr. Wu Guan-yun, an independent non-executive director, has over 20 years of management experience and is the chairman of the audit committee[67]. - Mr. Huang Jin-hua, another independent non-executive director, has over 15 years of legal experience and has served on various committees within the company[69]. - Mr. Zhu Shang-heng, appointed as an independent non-executive director on April 10, 2025, has a background in both medicine and law, focusing on legal risk assessment for enterprises[70]. - Mr. Zhou Dai-han, with over 30 years of experience in the traditional Chinese medicine industry, has been involved in teaching and research at Guangzhou University of Chinese Medicine since 1976[74]. Corporate Governance - The board consists of four executive directors, one non-executive director, and three independent non-executive directors, ensuring over one-third independence[85]. - The company has applied the principles of the corporate governance code and complied with all applicable code provisions for the year ending December 31, 2024[84]. - The board is responsible for overseeing the company's strategy development and monitoring operational and financial performance[87]. - All directors participated in continuous professional development programs to enhance their knowledge and skills during the year ending December 31, 2024[89]. - The company has arranged training for all directors to ensure they contribute effectively to the board[89]. - The independent non-executive directors possess expertise in finance, law, and business, providing a necessary balance of skills and experience[85]. - The company has a risk management policy in place aligned with its strategic objectives[87]. - The board believes that its current structure ensures independence and objectivity, safeguarding the interests of shareholders[85]. - The company has a commitment to prudent management principles and corporate responsibility to enhance shareholder value in the long term[83]. - The board has authorized management to execute the group's strategies and daily operations[87]. - The roles of the Chairman and CEO are distinct, with Mr. Lai Chi Tin serving as Chairman and Mr. Lai Wing Fung as CEO as of December 31, 2024[94]. - All directors are appointed for a term of three years, with independent non-executive directors also serving a three-year term[95]. - The attendance rate for board meetings was 100% for all executive directors, with Mr. Lai Chi Tin and Mr. Lai Wing Fung attending all 4 regular board meetings[99]. - The Audit Committee, consisting of independent non-executive directors, reviewed the financial statements and related materials during the year[103]. - The Remuneration Committee held one meeting during the year to review and assess the performance of directors and senior management[104]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific areas of governance[102]. - The company ensures that all independent non-executive directors are independent and possess extensive professional knowledge and experience[97]. - The company provides sufficient resources for all committees to fulfill their responsibilities and seek independent professional advice when necessary[102]. - The company has received written confirmations of independence from all independent non-executive directors as per listing rules[97]. - The company’s senior management annual salary ranges were disclosed, indicating a structured compensation framework[106]. - The Nomination Committee was established on June 8, 2015, and consists of five members, including three independent non-executive directors, ensuring a majority of independent members[107]. - The company adopted a nomination policy on August 29, 2018, to enhance board diversity and governance standards, considering factors such as qualifications, skills, integrity, and experience[109]. - The company secretary, Ms. Ho, has confirmed participation in at least 15 hours of relevant professional training for the fiscal year ending December 31, 2024[114]. - The board emphasizes risk management and has established effective risk management and internal control systems to manage risks impacting business objectives[118]. - The Audit Committee serves as the highest level of risk management within the company, reporting directly to the board[122]. - The company has a structured process for identifying potential board candidates, including recommendations from board members and professional recruitment firms[115]. - The board is committed to maintaining high standards of corporate governance and regularly reviews its governance policies[113]. - The company ensures compliance with the Listing Rules and has adopted the standard code for securities trading by directors[117]. - The Nomination Committee held one meeting during the fiscal year ending December 31, 2024, with all members receiving the meeting records for review and approval[107]. - The company has established a comprehensive organizational structure for managing risks faced by the group[119]. - The company has established a comprehensive risk management procedure to identify, assess, and manage significant risks, ensuring the effectiveness of the risk management and internal control systems[125]. - In 2024, the risk management team will conduct risk identification and assessment across five dimensions: strategic, market, operational, compliance, and financial[134]. - The internal audit department will evaluate the effectiveness of the risk management and internal control systems, ensuring they are sufficient to control risks that may impact the company's objectives[136]. ESG and Sustainability - The report covers the period from January 1, 2024, to December 31, 2024, focusing on the group's sustainable development policies and performance[168]. - The group has committed to ensuring the accuracy and completeness of the report, with the board reviewing and approving it on March 26, 2025[163]. - The ESG work committee is responsible for coordinating ESG management and identifying ESG risks and opportunities, adhering to relevant guidelines from the Hong Kong Stock Exchange[174]. - The group has engaged Riskory Consultancy Limited as an independent ESG consultant to assist in writing the ESG report and providing carbon offset consulting services[178]. - Stakeholder engagement is crucial for understanding risks and opportunities, with various communication channels used to gather feedback, including interviews and site visits[179]. - The report follows the mandatory disclosure requirements of the ESG Reporting Guidelines set by the Hong Kong Stock Exchange[164]. - The group has established key performance indicators for environmental and social aspects to monitor and assess progress in fulfilling its responsibilities[167]. - The board is responsible for decision-making regarding ESG matters, including reviewing strategies and assessing the effectiveness of ESG management[171]. - The report emphasizes the importance of a balanced presentation of the group's performance in environmental, social, and governance areas[167]. - The group aims to enhance its ESG management system to drive sustainable development and further business growth[170]. - The company emphasizes the importance of effective resource usage, ecological protection, and compliance management as key sustainability issues[187]. - The company has established multiple internal systems and codes, including the "Integrity System" and "Code of Conduct for Directors and Management," to ensure compliance and ethical behavior[190]. - The company has not been aware of any corruption lawsuits or significant violations related to bribery, fraud, or money laundering during the reporting period[190]. - The company prioritizes product quality and safety, as well as the protection of intellectual property rights, as critical responsibilities[187]. - The company encourages employees to report any misconduct through various channels, including a reporting mailbox and hotline[193]. - The company has identified key ESG issues for the year, focusing on stakeholder expectations and regulatory trends[185]. - The company is committed to maintaining a transparent and compliant operational environment, adhering to relevant laws and regulations[190]. - The company has implemented a green procurement policy, emphasizing the use of environmentally friendly materials[187]. - The company aims to promote health products and services as part of its community contribution efforts[187]. - The company emphasizes product quality and safety, aiming to provide healthy products to the public[197]. - Several products received accolades, including "Guangdong Province Pharmaceutical Industry Brand Product" for Zhongzhi Ke Kuaipian and Yinhuang Granules[197]. - The core brand "Caojinghua" was included in the "Guangdong Province Key Trademark Protection Directory" and won the "Xipu Gold Award" in the pharmaceutical industry[197]. - The company adheres to various quality management regulations, including GMP and GSP, to ensure the safety and effectiveness of its products[198]. - The company has established a comprehensive quality management system across its subsidiaries to ensure product reliability[200].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 2,214,783,000, representing an 8.0% increase compared to RMB 2,049,812,000 in 2023[3]. - Gross profit for the same period was RMB 1,288,407,000, with a gross margin of 58.2%, down from 59.4% in the previous year[3][5]. - Profit attributable to equity holders of the company decreased by 41.5% to RMB 95,212,000, compared to RMB 162,775,000 in 2023[3][5]. - Basic and diluted earnings per share were RMB 0.11, a decline of 42.1% from RMB 0.19 in the prior year[3][5]. - The company reported a net profit of RMB 96,147,000 for the year, down from RMB 164,134,000 in 2023[5][7]. - The total dividend per share decreased by 44.4% to HKD 0.05 from HKD 0.09 in the previous year[3]. - The operating profit before tax was reported at RMB 146,897 thousand, after accounting for various expenses including sales and distribution costs of RMB 988,737 thousand and administrative expenses of RMB 105,745 thousand[32]. - The company reported a pre-tax profit of RMB 207,581 thousand for the year, showing a stable performance despite increased costs[33]. - The total income tax expense increased to RMB 50,750,000 from RMB 43,447,000, marking an increase of about 16%[42]. - The profit attributable to equity holders of the parent company for the year was RMB 95,212,000, down from RMB 162,775,000, indicating a decrease of around 41%[47]. Assets and Liabilities - Non-current assets increased to RMB 973,002,000 from RMB 918,514,000 year-on-year[8]. - Current assets rose to RMB 1,014,120,000, compared to RMB 874,121,000 in the previous year[8]. - Total liabilities increased to RMB 731,564,000 from RMB 608,608,000 in 2023[9]. - The company's total equity stood at RMB 1,121,542,000, up from RMB 1,053,333,000 in the previous year[9]. - The total value of inventory increased to RMB 345,352,000 in 2024 from RMB 330,017,000 in 2023, representing a growth of approximately 4%[55]. - Trade receivables rose significantly to RMB 324,698,000 in 2024, up from RMB 195,894,000 in 2023, marking an increase of about 65.5%[56]. - The net trade receivables after impairment increased to RMB 316,737,000 in 2024, compared to RMB 192,033,000 in 2023, reflecting a growth of approximately 64.9%[58]. - The impairment loss for trade receivables increased to RMB 7,961,000 in 2024 from RMB 3,861,000 in 2023, indicating a rise of about 106%[58]. - Trade payables and notes payable totaled RMB 295.96 million, up from RMB 190.97 million in the previous year[62]. - The group's debt ratio increased to 7.5% as of December 31, 2024, compared to 4.8% in 2023, with total equity attributable to shareholders amounting to RMB 1,121.5 million[82]. Segment Performance - Total revenue for the year ending December 31, 2024, reached RMB 2,923,021 thousand, with contributions from the pharmaceutical segment at RMB 2,332,527 thousand and the retail pharmacy segment at RMB 590,494 thousand[32]. - The pharmaceutical segment generated external customer revenue of RMB 1,624,289 thousand, while inter-segment sales amounted to RMB 708,238 thousand[32]. - The pharmaceutical segment's revenue grew by approximately 14.7% to RMB 1,624.3 million, accounting for 73.3% of total revenue[70]. - The operating chain pharmacy segment's revenue declined by 6.9% to approximately RMB 590.5 million, representing 26.7% of total revenue[71]. - The gross profit of the retail pharmacy segment decreased by approximately 12.0%, amounting to RMB 212.3 million for the year ending December 31, 2024, compared to RMB 241.2 million in 2023[73]. Research and Development - Research and development costs increased to RMB 57,011 thousand in 2024 from RMB 49,982 thousand in 2023, reflecting a growth of approximately 14.0%[38]. - Research and development expenses increased by approximately 14.1% to RMB 57.0 million for the year ending December 31, 2024, compared to RMB 50.0 million in 2023, mainly due to increased collaborative R&D costs[77]. Compliance and Reporting Standards - The financial statements are prepared in accordance with International Financial Reporting Standards and Hong Kong Companies Ordinance, using historical cost convention except for certain financial assets measured at fair value[11]. - The company has adopted revised International Financial Reporting Standards for the first time this year, including IFRS 16 related to lease liabilities and IAS 1 regarding the classification of liabilities[15]. - The group has reassessed the debt terms and conditions for 2023 and 2024, concluding that the classification of liabilities as current or non-current remains unchanged, indicating no impact on the financial position[16]. - The group is currently analyzing the new regulations and assessing the impact of IFRS 18 on the presentation and disclosure of its financial statements[19]. - The group has not reported any significant changes in financial performance due to the early application of the amendments to international financial reporting standards[25]. Operational Stability - The company is primarily engaged in the manufacturing and sales of pharmaceutical products in China, with no significant changes in major activities during the year[10]. - The company has not reported any significant changes in its major activities during the year, indicating stability in its operations[10]. - The group operates 403 self-operated chain pharmacies in Guangdong Province, down from 428 in the previous year[71]. - The company anticipates a steady increase in demand for traditional Chinese medicine, prompting plans to expand production capacity at the new factory[91]. Shareholder and Corporate Governance - The proposed final dividend per ordinary share is 5 HKD cents, up from 3 HKD cents in the previous year, reflecting a growth of approximately 67%[43]. - The board has adopted a competitive remuneration policy for directors to attract and retain qualified individuals[88]. - The audit committee, established on June 8, 2015, reviews financial statements and oversees risk management and internal control systems[99]. - The company is committed to enhancing its existing business and will consider potential investment opportunities that may benefit shareholders[96].

Financial Performance - Total revenue for the six months ended June 30, 2024, was approximately RMB 1,088.4 million, a decrease of 0.5% compared to RMB 1,094.3 million in the same period of 2023[7]. - Profit attributable to equity holders for the period was approximately RMB 83.4 million, down about 38.2% from RMB 134.9 million in the same period of 2023[7]. - Basic earnings per share were RMB 0.099, a decrease of approximately 37.7% from RMB 0.159 in the same period of 2023[7]. - Gross profit for the group was RMB 627.0 million, a decrease of RMB 47.9 million or 7.1% from RMB 675.0 million for the same period in 2023[12]. - The group reported a profit before tax of RMB 105,019,000 for the six months ended June 30, 2024, compared to RMB 167,819,000 in the same period of 2023[51][58]. - Net profit for the period was RMB 84,252 thousand, down 38.2% from RMB 136,152 thousand in the prior year[34]. - The company reported a total comprehensive income of RMB 84,037 thousand for the period, down 38.4% from RMB 136,332 thousand in the same period last year[35]. Revenue Breakdown - Pharmaceutical segment revenue increased by approximately 0.8% to RMB 778.7 million, accounting for 71.5% of total revenue[9]. - Retail pharmacy segment revenue decreased by 3.7% to RMB 309.7 million, accounting for 28.5% of total revenue[8]. - The pharmaceutical segment generated revenue of RMB 778,700,000, while the retail pharmacy segment contributed RMB 309,726,000[50]. Expenses and Costs - Selling and distribution expenses increased by approximately 0.8% to RMB 448.5 million, representing 41.2% of revenue, up from 40.7% in the previous year, mainly due to increased advertising expenditures[16]. - The gross profit margin for the pharmaceutical segment decreased to 65.3% from 70.1%, primarily due to changes in product sales structure and rising prices of certain Chinese medicinal materials[13]. - The gross profit for the chain pharmacy segment fell by 11.2% to RMB 118.2 million, with a gross profit margin of 38.2%, down from 41.4% in the previous year, mainly due to increased promotional efforts[14]. - Other income and gains decreased to approximately RMB 18.1 million, down RMB 7.0 million from RMB 25.1 million in the same period last year, attributed to declines in raw material sales, investment income, and interest income[15]. Assets and Liabilities - The net current assets of the group as of June 30, 2024, were approximately RMB 276.7 million, compared to RMB 265.5 million as of December 31, 2023[19]. - Total liabilities increased to RMB 700,203 thousand, a rise of 15.1% from RMB 608,608 thousand at the end of 2023[36]. - Total equity as of June 30, 2024, was RMB 1,111,626 thousand, an increase of 5.5% from RMB 1,053,333 thousand at the end of 2023[38]. - Trade receivables increased to RMB 301,770,000 as of June 30, 2024, compared to RMB 195,894,000 as of December 31, 2023[71]. Capital Expenditures and Investments - Capital expenditures for the six months ended June 30, 2024, were approximately RMB 97.1 million, up from RMB 71.0 million for the same period in 2023, primarily related to the purchase of property, plant, and equipment[24]. - The construction of the new modern Chinese medicine production base has been completed, and equipment installation and compliance checks are underway[4]. - The company is committed to enhancing its production capacity for traditional Chinese medicine to capture increasing market demand, driven by rising public health awareness post-COVID-19[27]. Corporate Governance and Compliance - The company has adhered to the corporate governance code as outlined in the listing rules, ensuring high standards of transparency and accountability[30]. - The audit committee has reviewed the interim financial information for the six months ended June 30, 2024, ensuring compliance with accounting principles and policies[33]. - The financial data for the first half of 2024 was prepared in accordance with the applicable disclosure requirements of the Hong Kong Stock Exchange[46]. Shareholder Information - The major shareholder, Xian Zhi, holds 506,922,000 shares, representing approximately 58.70% of the issued share capital[93]. - The second-largest shareholder, Zhi Li, owns 42,240,000 shares, accounting for about 4.89% of the issued share capital[93]. - The company declared dividends amounting to RMB (69,503,000) during the reporting period, consistent with the previous year[40]. Future Outlook - The company anticipates a challenging year ahead, with both difficulties and opportunities[6]. - The company is adapting to new consumer habits and expanding its focus from treatment services to preventive healthcare services[5].

Financial Performance - The group's revenue for the six months ended June 30, 2024, was approximately RMB 1,088.4 million, a decrease of 0.5% compared to RMB 1,094.3 million for the same period in 2023[1]. - Gross profit for the same period was approximately RMB 627.0 million, down 7.1% from RMB 675.0 million, with a gross margin decrease of 4.1 percentage points to about 57.6%[1]. - Profit attributable to equity holders of the parent was approximately RMB 83.4 million, representing a decrease of about 38.2% compared to RMB 134.9 million for the same period in 2023[1]. - Basic earnings per share for the six months ended June 30, 2024, were approximately RMB 0.099, down 37.7% from RMB 0.159 for the same period in 2023[1]. - The total comprehensive income for the period was RMB 84.0 million, down from RMB 136.3 million in the previous year[5]. - The group's operating profit before tax for the six months ended June 30, 2024, was RMB 105,019, compared to RMB 105,019 in the previous year, indicating stability in profitability[19]. - The group reported total other income of RMB 18,074 for the six months ended June 30, 2024, down from RMB 25,152 in 2023, representing a decrease of approximately 28%[21]. - The total income tax expense for the six months ended June 30, 2024, was RMB 20,767,000, a decrease of 34.5% compared to RMB 31,667,000 for the same period in 2023[24]. - The current income tax for mainland China was RMB 21,396,000 for the six months ended June 30, 2024, down from RMB 40,983,000 in the previous year, representing a decline of 47.8%[24]. - Profit attributable to equity holders of the parent company decreased by 38.2% to RMB 83.4 million for the six months ended June 30, 2024, compared to RMB 134.9 million for the same period in 2023, with a net profit margin of 7.7%[70]. Dividends - The board of directors recommended not to declare any interim dividend for the six months ended June 30, 2024, compared to an interim dividend of HKD 0.06 per share for the same period in 2023[1]. - The company did not declare an interim dividend after June 30, 2024, compared to RMB 51,816,000 for the six months ended June 30, 2023[25]. - The company declared a final dividend of HKD 0.06 per ordinary share and a special dividend of HKD 0.03 per ordinary share for the previous financial year, totaling approximately RMB 69,503,000 after adjustments[25]. Assets and Liabilities - Non-current assets as of June 30, 2024, totaled RMB 984.8 million, an increase from RMB 918.5 million as of December 31, 2023[7]. - Current assets increased to RMB 976.9 million from RMB 874.1 million as of December 31, 2023, with inventories rising to RMB 344.4 million[7]. - Current liabilities rose to RMB 700.2 million from RMB 608.6 million as of December 31, 2023[7]. - Total equity as of June 30, 2024, was RMB 1,111.6 million, compared to RMB 1,053.3 million as of December 31, 2023[9]. - The carrying amount of properties, plant, and equipment as of June 30, 2024, was RMB 578,389,000, an increase from RMB 498,367,000 as of December 31, 2023[29]. - The company's cash and cash equivalents totaled RMB 162,908,000 as of June 30, 2024, slightly down from RMB 164,368,000 on December 31, 2023, showing a decrease of about 0.9%[37]. - Trade payables as of June 30, 2024, were RMB 148,825,000, an increase from RMB 140,766,000 as of December 31, 2023, representing a growth of approximately 5.0%[39]. - The company's net trade receivables amounted to RMB 294,512,000, a significant increase from RMB 192,033,000 as of December 31, 2023, representing a growth of approximately 53.4%[34]. - The company's inventory value as of June 30, 2024, was RMB 344,374,000, compared to RMB 330,017,000 on December 31, 2023, indicating a rise of about 4.4%[33]. Segment Performance - The pharmaceutical segment generated revenue of RMB 778.7 million for the six months ended June 30, 2024, an increase of 0.8% compared to RMB 772.6 million for the same period in 2023, accounting for 71.5% of total revenue[60]. - The retail pharmacy segment reported a revenue decrease of 3.7% to RMB 309.7 million for the six months ended June 30, 2024, down from RMB 321.7 million in the same period in 2023, representing 28.5% of total revenue[60]. Expenses - The cost of goods sold for the six months ended June 30, 2024, was RMB 461,380, an increase from RMB 419,365 in 2023, reflecting a rise of approximately 10%[22]. - Research and development expenses for the six months ended June 30, 2024, amounted to RMB 22,886, up from RMB 20,551 in 2023, marking an increase of about 11.3%[22]. - The total administrative expenses for the six months ended June 30, 2024, were RMB 52,645, compared to RMB 52,645 in the previous year, showing no change[19]. - Selling and distribution expenses increased by approximately 0.8% to RMB 448.5 million for the six months ended June 30, 2024, compared to RMB 445.0 million for the same period in 2023, representing 41.2% of revenue[67]. - The group’s total employee benefits expenses, including director remuneration, were RMB 164,280 for the six months ended June 30, 2024, compared to RMB 141,411 in 2023, representing an increase of approximately 16%[22]. Governance and Compliance - The company confirms adherence to corporate governance standards and has established a written terms of reference for its audit committee[84]. - The financial data for the six months ending June 30, 2024, has been prepared in accordance with the Hong Kong Stock Exchange's listing rules and International Accounting Standards[12]. - The company has adopted accounting policies consistent with those used for the annual consolidated financial statements for the year ending December 31, 2023[13]. Future Outlook - The company anticipates that the pharmaceutical industry will experience healthy development driven by the increasing healthcare needs of the population, despite short-term pressures from rising prices of certain Chinese medicinal materials[56]. - The company is focused on implementing a health-first development strategy to meet the growing medical and healthcare demands of the public[56]. - The company is accelerating the development of new products in the wall-breaking herbal tea category and entering new sales channels[57]. - The company has established an international standard for wall-breaking traditional Chinese medicine products, which supports the standardization and innovation of these products in the international market[57].

Shareholder Communication and Governance - The company has reviewed its shareholder communication policy for the year ending December 31, 2023, and believes it has been effectively implemented[8]. - The company emphasizes the importance of timely and accessible information for shareholders and potential investors[2]. - The company is committed to ensuring effective communication with shareholders through various channels, including its website[5]. - The company has implemented corporate governance principles to enhance shareholder value, adhering to all applicable codes[116]. - The board believes that the company has applied the principles of the corporate governance code and complied with all applicable provisions as of December 31, 2023[117]. - The board consists of four executive directors, two non-executive directors, and three independent non-executive directors, ensuring over one-third independence[118]. - The board is responsible for overseeing the company's strategic development and setting appropriate risk management policies[120]. - The company has a robust governance framework to ensure accountability and transparency[120]. - The chairman and CEO roles are separated, with Mr. Lai Chi Tin as chairman and Mr. Lai Ying Fung as CEO[128]. - The independent non-executive directors possess extensive experience in finance, law, and business[118]. - The board is committed to making objective decisions in the best interest of the company[119]. - The company has arranged professional training to update directors' knowledge on securities trading analysis[125]. - The company has confirmed that there are no significant uncertainties regarding its ability to continue as a going concern[118]. - The company has established three committees: the audit committee, remuneration committee, and nomination committee, to oversee specific areas of corporate governance[159]. Environmental, Social, and Governance (ESG) Performance - The report covers the group's performance in environmental, social, and governance (ESG) matters for the period from January 1 to December 31, 2023[14]. - The ESG report is the eighth of its kind and aims to report on the group's policies, measures, and performance in ESG areas[9]. - The report adheres to the mandatory disclosure requirements of the Hong Kong Stock Exchange's ESG reporting guidelines[10]. - The board is responsible for decision-making regarding ESG matters, including reviewing strategies and assessing the effectiveness of ESG management[18]. - The company has established a systematic management framework for ESG-related matters, divided into decision-making, communication, and execution levels[17]. - The report includes key performance indicators for environmental and social aspects, which are essential for monitoring and evaluating the company's sustainability efforts[12]. - The company aims to reduce the environmental impact by encouraging shareholders to access communications electronically[5]. Financial Performance - For the fiscal year ending December 31, 2023, the company's revenue increased by approximately 12.3% to RMB 2,049.8 million, compared to RMB 1,825.9 million in 2022[56]. - The profit attributable to the owners of the parent company rose by about 53.0% to RMB 162.8 million, up from RMB 106.4 million in the previous year[57]. - The pharmaceutical segment's revenue grew by approximately 25.3% to RMB 1,415.7 million, accounting for 69.1% of total revenue, compared to 61.9% in 2022[60]. - The retail pharmacy segment's revenue decreased by 8.9% to RMB 634.1 million, representing 30.9% of total revenue, down from 38.1% in 2022[65]. - The company's gross profit for the year was RMB 1,218.1 million, an increase of RMB 145.8 million or 13.6% from RMB 1,072.3 million in 2022[66]. - The gross profit margin for the pharmaceutical segment remained stable at 69.0%, while the retail pharmacy segment's gross profit margin decreased to 38.0% from 42.4% in the previous year[66][67]. - Other income and gains increased to approximately RMB 51.5 million, up from RMB 33.7 million in 2022, primarily due to government subsidies and interest income[68]. - Research and development expenses rose to approximately RMB 50.0 million, an increase of about 7.8% from RMB 46.4 million in 2022[72]. - The group's net profit margin improved to 7.9% for the year ended December 31, 2023, up from 5.8% in 2022[75]. - As of December 31, 2023, the group's total equity attributable to shareholders was approximately RMB 1,053.3 million, an increase from RMB 1,005.9 million in 2022[77]. - The group had outstanding unsecured borrowings of RMB 22.7 million and HKD 30.0 million as of December 31, 2023, compared to RMB 1.0 million and HKD 39.2 million in 2022[77]. - The group had available undrawn bank financing of RMB 119.3 million and HKD 10.0 million as of December 31, 2023, slightly up from RMB 119.0 million and HKD 1.0 million in 2022[78]. - The group's debt ratio (borrowings to total equity) was 4.8% as of December 31, 2023, compared to 3.6% in 2022[82]. Operational Developments - The company celebrated its 30th anniversary, reflecting on past growth and future development[44]. - The market activities have returned to normal post-pandemic, but the rising prices of traditional Chinese medicine materials have posed operational pressures[44]. - The company optimized procurement processes to mitigate the rising costs of raw materials[44]. - The core products of traditional Chinese medicine have significantly increased market share, with expected performance growth[44]. - The construction of the new Hengsheng factory has been completed, now entering the internal decoration and equipment installation phase[44]. - The National Enterprise Technology Center is playing a leading role, with R&D projects progressing in an orderly manner[44]. - The Yunzhihuan company has entered a positive development track after a year of adjustment[44]. - The company plans to accelerate the construction of a new pharmaceutical plant and continue the secondary development of core products to lay a foundation for future growth[51][60]. - The company aims to enhance its market presence in traditional Chinese medicine and optimize internal management to improve overall operational efficiency[48][49]. - The group plans to expand the production capacity of traditional Chinese medicine to capture more market share, driven by the increasing demand for its products[93]. - The group has completed land bidding for a new factory in Zhongshan, Guangdong Province, to enhance production capacity for its proprietary brand products[99]. - The group's capital commitments amounted to RMB 28.5 million as of December 31, 2023, up from RMB 16.9 million in 2022, primarily related to the purchase of production equipment for the new factory[98]. - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[96]. - The company has expanded its business from pharmaceutical product distribution to operating chain pharmacies and manufacturing pharmaceutical products[105]. Risk Management - The board of directors has established a comprehensive risk management and internal control system to manage risks affecting business objectives, ensuring reasonable assurance against significant misstatements or losses[175]. - The risk management team leads daily risk management activities and submits annual risk management plans for review by the audit committee[180]. - The company has established a risk management organizational structure to effectively manage the risks it faces[176]. - The company has implemented a risk response strategy that includes regular monitoring and evaluation of the effectiveness of risk management practices across all business units[196]. - The internal audit department independently evaluates the adequacy and effectiveness of the group's risk management and internal control systems[197]. - The risk management project team coordinates with various departments to identify and assess risks regularly, ensuring comprehensive risk management reporting[185]. - The risk management team is responsible for tracking the implementation of major risk response plans and measures, reporting to senior management[199]. - The company has a structured process for risk information collection, risk identification, assessment, monitoring, and improvement[188]. - In 2023, the risk management team conducted risk identification and assessment across five dimensions: strategic, market, operational, compliance, and financial[198]. - The board believes that the internal control system is effective and sufficient, adequately controlling various risks that may affect the company's objectives[200]. - The risk management team organized senior management to discuss and determine risk response strategies and specific plans for the top ten identified risks[198]. Management and Leadership - The executive team includes experienced professionals with over 30 years in the pharmaceutical industry, enhancing strategic planning and operational efficiency[105]. - The CEO has been with the company since 2014, focusing on sales strategy and brand management, indicating strong leadership continuity[106]. - The CFO joined the company in 2018 and has since managed various operational functions, showcasing a robust financial management structure[109]. - The management team has a strong background in pharmaceutical production and quality control, enhancing operational efficiency[157][158]. - The company is committed to quality control procedures, ensuring compliance with industry standards[114]. - The company has a strong focus on research and development in traditional Chinese medicine, with key personnel holding relevant qualifications[114]. - The company is actively involved in industry associations, enhancing its influence and networking within the pharmaceutical sector[105]. - The nomination committee held one meeting during the year ending December 31, 2023, to discuss the appointment and succession of directors[166]. - The company secretary has confirmed participation in no less than 15 hours of relevant professional training as required by listing rules[172]. - The company is committed to maintaining adequate resources for its committees to fulfill their responsibilities effectively[150]. - The compensation range for senior management as of December 31, 2023, is between HKD 0 to 500,000 for 2 individuals and HKD 500,000 to 1,200,000 for 4 individuals[165].