Financial Performance - The Group recorded revenue of RMB2,271.5 million for the Reporting Period, an increase of RMB247.4 million or 12.2% compared to RMB2,024.1 million in 2021[157]. - Revenue from human albumin solution was RMB2,257.2 million, representing an increase of approximately 14.4% or RMB283.9 million compared to 2021[158]. - The Group's net profit decreased by 48.6% to RMB69.5 million for the Reporting Period (2021: RMB135.1 million), primarily due to a decrease in gross profit from sales[118][121]. - Gross profit decreased to RMB305.9 million, down RMB59.1 million from RMB365.0 million in 2021, with a gross profit margin declining from 18.0% to 13.5%[161]. - Total assets increased to RMB1,424.3 million in 2022 from RMB1,232.8 million in 2021[127]. - Total equity attributable to owners of the Company rose to RMB603.8 million in 2022 from RMB374.9 million in 2021[127]. - Other income and gains amounted to RMB25.2 million, an increase of RMB14.3 million compared to 2021, mainly due to an increase in exchange gains[162]. Share Option Scheme - The total number of shares available for issue under the Share Option Scheme is capped at 160,000,000, which constitutes 7.87% of the issued shares of the company as of the report date[9]. - The company has adopted a Share Option Scheme to incentivize eligible participants for their contributions, effective since March 10, 2016[4]. - The maximum entitlement of each participant under the Share Option Scheme is limited to 1% of the total shares in issue within any 12-month period[5]. - The nominal consideration for accepting the grant of an option is HK$1.00[12]. - The options granted under the Share Option Scheme must be held for a minimum of one year before they can be exercised[13]. - As of December 31, 2022, there were 1,150,000 options granted to employees that remained unexercised, with all options having lapsed[20]. - The remaining life of the Share Option Scheme as of December 31, 2022, is approximately 3 years and 2 months, expiring in early 2026[8]. Corporate Governance - The company considers all independent non-executive directors to be independent according to the Listing Rules[25]. - All independent non-executive directors confirmed their independence as per the listing rules[31]. - No significant transactions or contracts involving directors were reported during the reporting period[36]. - The directors proposed for re-election at the forthcoming AGM do not have service contracts that are not determinable within one year without compensation[35]. - No equity-linked agreements were entered into by the Company during the reporting period[29]. Business Operations - The Group's principal activity involves investment holding and providing comprehensive marketing, promotion, and channel management services for imported pharmaceutical products and medical devices in China[97]. - The Group aims to expand its market presence in China through strategic marketing and promotion of imported pharmaceutical products[97]. - The Group's overall business development, operation, and management are overseen by Mr. Jin Min, who was appointed as CEO in March 2023[86]. - The Group has over 19 years of experience in the pharmaceutical industry, with key management personnel having extensive backgrounds in marketing and product management[86][88][91]. - The Group's R&D efforts are led by Mr. Wu Qingjiang, who has over 40 years of experience in pharmaceutical production and quality control[93]. Cash Flow and Financial Management - Net cash from operating activities was RMB 75.1 million, a decrease from RMB 305.7 million in 2021, mainly due to increased cash from sales and a decrease in prepayments[191]. - Net cash used in investing activities was RMB 119.3 million, compared to RMB 22.7 million in 2021, primarily due to purchases of property, plant, and equipment and acquisitions of subsidiaries[192]. - Net cash inflow from financing activities was RMB 35.0 million, a turnaround from a net outflow of RMB 97.1 million in 2021, mainly due to cash inflow from the issuance of new shares amounting to RMB 159.5 million[193]. - The Group's cash and cash equivalents at the end of the reporting period amounted to RMB 436,996,000, an increase from RMB 381,067,000 in the previous year, representing a growth of approximately 14.6%[196]. - The Group has adopted a prudent financial management approach towards its treasury policies, emphasizing strict control over outstanding receivables[200]. Market and Sales Performance - The Group's largest supplier accounted for 99.47% of total products purchased during the Reporting Period, up from 96.8% in 2021[107]. - The marketing network has expanded to cover key hospitals in major cities and further penetrated into prefectures and second-tier and third-tier cities, leading to significant growth in sales at terminal hospitals[139][142]. - The company plans to continue focusing on the terminal hospital market while supplementing with retail pharmacies to enhance market coverage and sales channel share in 2023[139][142]. - The pharmaceutical distribution business is expected to encounter new opportunities in 2023 following the easing of supply chain pressures due to the pandemic[132][134]. Dividend and Shareholder Information - The final dividend declared for the year ended December 31, 2022, is HK$0.98 cents per ordinary share, totaling HK$20,000,000, compared to HK$0 for the previous year[99][101]. - The final dividend is subject to approval by shareholders at the upcoming AGM[99][101]. - The annual general meeting (AGM) is scheduled for May 29, 2023, with a notice to be published in accordance with the Listing Rules[100].

蓬勃发展的阶段那么并呈现持续的一个增长的态势在目前双赛道的加持下公司的稀缺性及高成长性也借此得到体现那么公司管理层也特此举办本次的现在发布会希望与市场的各位朋友进行深入的一个沟通交流那么我们本次的会议将分为两个环节 向2021年减少约人民币5900万主要是因为人民币对美元汇率的贬值导致了采购成本增加公司于去年收购德美医疗美容医院全部股权向医美终端进行布局医美服务板块收入增加0.12亿元 具体内置PCL为少女针、平滑针等产品的主要成分它是医用生物降解高分子材料具有良好的生物相容性及降解性可完全降解为水和二氧化碳今年被广泛应用于各类可被人体吸收的质体上通过PCL加X理念打造填充加塑形加再生的 公司为他们提供药品市场的渠道管理服务包括价格维护 招投标以及医保商业配送渠道经销商管理药品质量和医药合规检查等公司目前依托两条业务线与国外制药生产商展开合作一是由境内子公司直接进口二是建立香港和新加坡的业务平台进行周转 最后一张是财务回顾公司目前的总市值约为8亿港币市盈率约为9.67近三年公司收益稳步增长2022年营业收入约为人民币23亿元其中人血白蛋白注射销售约为人民币20亿元公司也进入到了快速发展的阶段在开拓英美赛道的同 ...

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。 Sinco Pharmaceuticals Holdings Limited 興科蓉醫藥控股有限公司 （根據開曼群島法例註冊成立的有限公司） （股份代號：6833） 截 至2022年12月31日 止 年 度 的 年 度 業 績 公 告 財務摘要 (cid:129) 報告期內，本集團收益增長12.2%或人民幣247.4百萬元至人民幣2,271.5 百萬元（2021年：人民幣2,024.1百萬元），其中人血白蛋白注射液銷售收 益增長人民幣約283.9百萬元，主要得益於銷售量的增長。 (cid:129) 報告期內，本集團毛利減少人民幣59.1百萬元至人民幣305.9百萬元（2021 年：人民幣365.0百萬元），毛利率則由2021年的18.0%下降至報告期內的 13.5%。毛利減少主要由於人民幣兌美元匯率貶值導致採購成本增加。 (cid:129) 報 告 期 內，本 集 團 純 利 減 少48.6%至 人 ...

Financial Performance - The Group's revenue increased by 33.4% or RMB 282.9 million to RMB 1,129.9 million for the Reporting Period, compared to RMB 847.0 million for the six months ended June 30, 2021[8]. - Gross profit increased by RMB 34.7 million to RMB 192.2 million, while the gross profit margin slightly decreased from 18.6% to 17.0% due to increased purchase costs[9]. - Net profit decreased by approximately RMB 13.4 million to RMB 61.9 million, primarily due to increased sales and administration expenses related to market promotion and research and development activities[10]. - Basic earnings per share amounted to RMB 0.03049 for the Reporting Period, down from RMB 0.04450 for the six months ended June 30, 2021[11]. - Diluted earnings per share also decreased to RMB 0.03048 from RMB 0.04450 in the previous period[12]. - Revenue for the six months ended June 30, 2022, was RMB 1,129.9 million, an increase of 33.4% from RMB 847.0 million in the same period of 2021[18]. - Gross profit for the same period was RMB 192.2 million, representing a 22% increase compared to RMB 157.5 million in 2021[18]. - The profit before tax decreased to RMB 78.6 million, down 14.3% from RMB 91.7 million in the previous year[18]. - The net profit margin for the period was 5.5%, a decrease from 8.9% in the previous year[18]. Revenue Sources - Revenue from sales of Human Albumin Solution increased by approximately RMB 322.0 million, while revenue from sales of antibiotics decreased by approximately RMB 41.6 million[8]. - Revenue from Human Albumin Solution was RMB 1,127.4 million, an increase of approximately 40% or RMB 322.0 million compared to the first half of 2021, driven by increased supply and sales volume[45]. - The Group temporarily halted sales of antibiotics due to adverse market demand from the ongoing COVID-19 pandemic, with plans to develop new sales channels for these products[49]. Expenses and Costs - Increased research and development expenses on aesthetic medicine contributed to the rise in overall expenses during the Reporting Period[10]. - The overall financial results indicate a need for careful management of costs to improve profitability moving forward[10]. - The Group recorded administrative expenses of RMB 37.3 million, an increase of RMB 19.9 million compared to the same period in 2021[58]. - The Group's selling and distribution expenses were approximately RMB 67.8 million, an increase of RMB 32.9 million compared to the corresponding period in 2021, mainly due to higher marketing promotion expenses[57]. Assets and Liabilities - The total assets as of June 30, 2022, were RMB 1,603.4 million, up 30% from RMB 1,232.8 million at the end of 2021[18]. - The total liabilities increased to RMB 1,007.1 million, a rise of 17.4% from RMB 857.9 million at the end of 2021[18]. - Inventory balances decreased to RMB 45.2 million from RMB 61.3 million at the end of 2021, a reduction of RMB 16.1 million due to lower inventory of human albumin solution[67]. - Trade receivables increased to RMB 228.5 million from RMB 213.2 million at the end of 2021, an increase of RMB 15.3 million due to higher sales[69]. - Trade and bills payables increased to RMB 568.3 million from RMB 422.9 million at the end of 2021, an increase of RMB 145.4 million driven by increased purchases[79]. Cash Flow and Financing - Net cash from operating activities increased to approximately RMB 87.7 million for the six months ended June 30, 2022, compared to RMB 81.7 million for the same period in 2021[88]. - Net cash used in investing activities rose significantly to RMB 90.0 million, up from RMB 1.6 million in the prior year, primarily due to the acquisition of Demei Company for RMB 68.0 million[89]. - Net cash from financing activities increased to RMB 124.6 million, compared to RMB 44.8 million in the same period last year, driven by net proceeds from bank borrowings of RMB 160.0 million[90]. - Cash and cash equivalents at the end of the period totaled RMB 456.7 million, an increase from RMB 267.0 million at the end of the previous year[87]. Strategic Initiatives - The Group's financial performance reflects a strategic focus on expanding sales channels and enhancing product offerings in the medical beauty sector[10]. - The Group acquired a 70% equity interest in Demei Company in May 2022, enhancing its capabilities in the medical beauty services sector[36]. - The research and development of the first medical beauty product, "Girl Needle," is progressing well, with pilot production expected to start in the second half of the year[42]. - The Group aims to develop a series of "PCL+X" products based on polycaprolactone raw materials to expand its medical aesthetics product line[42]. Corporate Governance and Compliance - The Group is committed to maintaining high standards of corporate governance and has complied with all applicable code provisions under the Corporate Governance Code during the Reporting Period[149]. - The Group complied with all applicable laws and regulations of the Cayman Islands, British Virgin Islands, Hong Kong, and the PRC during the Reporting Period[145]. - The Audit Committee reviewed the unaudited condensed interim results of the Group for the Reporting Period[159]. Shareholder Information - The Board resolved not to declare any interim dividend for the Reporting Period, consistent with the previous year[13]. - As of June 30, 2022, Mr. Huang holds 1,050,000,000 shares, representing 51.65% of the total shares issued, which amounts to 2,032,890,585 shares[167][170]. - Mr. Jin Min, a beneficial owner, holds 13,680,000 shares, accounting for approximately 0.67% of the total shares[167]. - The Share Option Scheme, effective from March 10, 2016, allows for the issuance of up to 160,000,000 shares, which is 7.87% of the issued share capital as of the report date[185]. Employee and Labor Relations - The Group had a total of 133 employees as of June 30, 2022[122]. - The Group's employee remuneration policy considers local market remuneration, industry standards, inflation, and employee performance[123]. - The Group did not experience major difficulties in recruitment or significant labor disputes during the reporting period[128].

Financial Performance - Revenue of the Group decreased by 1.25% or RMB25.7 million to RMB2,024.1 million for the Reporting Period (2020: RMB2,049.8 million) [11] - Gross profit increased by RMB91.2 million to RMB365.0 million, with gross profit margin rising from 13.4% in 2020 to 18.0% for the Reporting Period [12] - Net profit increased by 14.4% to RMB135.1 million for the Reporting Period (2020: RMB118.1 million) [14] - Basic and diluted earnings per share amounted to RMB0.08 for the Reporting Period (2020: RMB0.07) [15] - The Board resolved not to declare any final dividend for the Reporting Period (2020: Nil) [16] - The Group's financial performance was primarily driven by the increase in gross profit [14] - The gross profit for the year was RMB365.0 million, an increase of RMB91.2 million compared to RMB273.8 million in 2020, resulting in a gross profit margin of 18.0%, up from 13.4% in the previous year [29] - The net profit for the year was RMB135.1 million, showing growth compared to the previous year's profit of RMB118.1 million [36] Revenue Breakdown - Revenue from sales of Human Albumin Solution increased by approximately RMB84.3 million, offset by a decrease in revenue from antibiotics amounting to RMB110.0 million [11] - Revenue from human albumin solution was RMB1,973.3 million, representing an increase of approximately 4.5% or RMB84.3 million compared to 2020, driven by increased supply and sales volume [54] - Revenue from antibiotics decreased by RMB110.0 million compared to 2020, primarily due to reduced hospital inpatient numbers and the implementation of drug volume-based purchasing policies [52] - Sales of human albumin injection amounted to RMB1,973.3 million, an increase of approximately 4.5% compared to 2020 [29] - The sales revenue of antibiotic products decreased significantly to approximately RMB50.8 million, a decline of about 68.4% [29] Market and Product Development - The Company continues to focus on enhancing its product offerings and market presence [11] - The Group expects significant increases in purchase and sales volumes of human albumin in 2022, driven by recovery in plasma collection and new production capacity [32] - The aesthetic medicine market in China is projected to grow from RMB143.6 billion in 2020 to RMB318.5 billion in 2024, with a compound annual growth rate of 17.3% [38] - The non-surgical medical aesthetic market in China is expected to grow from RMB54.5 billion in 2020 to RMB98 billion in 2022, with a compound annual growth rate of 34.1% [40] - The Group initiated the development of the "Girl Needle" project with a planned investment of RMB88.5 million, targeting the non-surgical medical aesthetic market [40] - The Group's projects in the medical aesthetics industry chain have been launched in an orderly manner, anticipated to contribute new profit growth in the near future [43] Operational Efficiency - The Group recorded a cost of sales of RMB1,659.1 million, a decrease of RMB116.9 million or 6.6% compared to RMB1,776.0 million in 2020 [56] - Inventory balances decreased to RMB61.3 million from RMB242.6 million, a reduction of RMB181.3 million, attributed to increased sales of human albumin [73] - Average inventory turnover days decreased by 19 days from 52 days in 2020 to 33 days for the Reporting Period [74] - Trade receivables decreased to RMB213.6 million from RMB578.7 million, a decline of RMB365.1 million, due to enhanced credit term management [75] Cash Flow and Financial Stability - Net cash from operating activities for 2021 was RMB305.7 million, a substantial increase from RMB137.3 million in 2020 [92] - Cash and cash equivalents at the end of 2021 totaled RMB381.1 million, significantly up from RMB143.8 million at the end of 2020 [99] - The gearing ratio at the end of the reporting period was 54.5%, down from 84.8% in 2020, reflecting improved financial stability [88] - Total borrowings as of December 31, 2021, were RMB340.6 million, compared to RMB81.0 million in 2020, indicating a significant increase [86] Marketing and Distribution - The marketing network has expanded to cover key hospitals in major cities and further penetrated into second- and third-tier cities, enhancing market coverage [34] - The Group's marketing strategy focuses on enhancing distributor and promoter management to respond quickly to market changes [119] - The Group's marketing network has been expanded to include provincial, municipal, and county hospitals, improving market penetration [120] - Following the implementation of the "Two-Invoice System" in China, sales channels have become flatter, allowing manufacturers to directly reach end customers [134][135] Research and Development - R&D expenses incurred during the reporting period amounted to RMB25.5 million, reflecting the Group's commitment to innovation and product development [128][130] - The Group is developing "Sinco I," a new realgar-based chemical medicine for treating acute promyelocytic leukemia, currently in pilot experiments, with R&D expenses of RMB0.7 million incurred during the reporting period [128][129] - A collaboration with Beijing Nuokangda is underway to develop a polycaprolactone microsphere facial filler ("Girl Needle"), with total R&D expenses projected at RMB88.50 million and expected completion within 49 months [128][130] Corporate Governance and Compliance - The Group's corporate governance aims to safeguard the interests of investors, staff, suppliers, distributors, and other stakeholders [183] - The Group emphasizes compliance with laws and regulations, enhancing safety management, and actively assuming social responsibility [199] - The Group has complied with all relevant laws and regulations in the jurisdictions it operates in during the reporting period [164] Employee and Supplier Relations - The total staff costs for the Group were RMB 17.6 million in 2021, an increase from RMB 11.7 million in 2020, reflecting a growth of approximately 50.4% [141] - The Group maintains stable relationships with suppliers by providing access to the growing Chinese market, ensuring steady sales growth [151] - The Group's employee remuneration policy considers local market remuneration, industry standards, inflation, and corporate efficiency, with annual performance appraisals influencing salary reviews [141]

Financial Performance - Revenue increased by 33.1% or RMB210.7 million to RMB847.0 million for the Reporting Period, compared to RMB636.3 million for the six months ended June 30, 2020[11]. - Gross profit rose by RMB48.9 million to RMB157.5 million, with gross profit margin increasing from 17.1% to 18.6%[12]. - Net profit for the Reporting Period was RMB75.3 million, up from RMB32.5 million for the same period in 2020, representing an increase of RMB42.8 million[13]. - Basic earnings per share increased to RMB0.044, compared to RMB0.019 for the six months ended June 30, 2020[14]. - Profit before tax increased to RMB 91,684,000 from RMB 30,166,000, indicating a significant improvement in profitability[18]. - The increase in net profit was primarily due to the rise in gross profit and a decrease in operating expenses[13]. - The Group's gross profit margin improvement aligns with the overall revenue growth[12]. - The financial results reflect a strong performance in the pharmaceutical sector despite challenges in antibiotic sales[11]. Revenue Breakdown - Revenue from sales of Human Albumin Solution increased by approximately RMB302.3 million, while revenue from sales of antibiotics decreased by approximately RMB91.6 million[11]. - Human Albumin Injection revenue reached RMB 805.4 million, a 60.1% increase or RMB 302.3 million compared to the same period in 2020, driven by stable supply and expanded sales network[30]. - Revenue for the six months ended June 30, 2021, was RMB 847,044,000, an increase from RMB 636,306,000 in the same period of 2020, representing a growth of approximately 33.1%[18]. - Revenue from antibiotics decreased by RMB91.6 million compared to the corresponding period in 2020, primarily due to the implementation of a drug volume-based purchasing policy[65]. Expenses and Liabilities - The Group's cost of sales was RMB689.5 million, an increase of RMB161.8 million or 30.7% compared to RMB527.7 million in the corresponding period of 2020[68]. - Selling and distribution expenses were approximately RMB34.9 million, a decrease of RMB26.4 million compared to the corresponding period of 2020[72]. - Administrative expenses were RMB17.4 million, a decrease of RMB2.7 million compared to the corresponding period of 2020[73]. - Total liabilities decreased to RMB 875,609,000 from RMB 1,087,624,000, reflecting improved financial stability[18]. Cash Flow and Liquidity - Cash and cash equivalents increased to RMB 267,002,000 from RMB 143,765,000, indicating stronger liquidity[18]. - The Group's net cash inflow from operating activities for the six months ended 30 June 2021 was approximately RMB 81.7 million, compared to a net cash outflow of RMB 88.7 million for the same period in 2020[109]. - The net cash outflow from investing activities during the Reporting Period was RMB 1.7 million, a decrease from a net cash inflow of RMB 2.3 million in the prior year[110]. - The Group's net cash inflow from financing activities amounted to approximately RMB 44.8 million, compared to a net cash outflow of RMB 52.2 million for the same period in 2020[113]. Assets and Inventory - Total assets as of June 30, 2021, were RMB 1,115,319,000, down from RMB 1,252,053,000 at the end of 2020[18]. - Inventory balances amounted to RMB100.0 million as of 30 June 2021, a decrease of RMB142.6 million from the year-end balance of 2020[87]. - Trade receivables decreased to RMB287.8 million as of 30 June 2021, down RMB290.9 million from the year-end balance of 2020[89]. - Trade and bills payables decreased to RMB314.9 million as of 30 June 2021, a decrease of RMB385.4 million from the year-end balance of 2020[91]. Strategic Initiatives - The company plans to develop its medical aesthetic industry chain, establishing dual business segments in pharmaceutical and medical aesthetic products[32]. - The marketing network has been expanded to improve market penetration, extending coverage from large Class-III hospitals to provincial, municipal, and county hospitals[43][46]. - The Group aims to provide high-quality pharmaceutical cold-chain storage services to third parties upon completing the second phase of the cold chain facility[49][52]. - The Group will continue to optimize its marketing network and product portfolio, focusing on blood products and antibiotics as core therapeutic areas[59]. Human Resources and Management - The Group's human resources have been optimized, streamlining the marketing team structure and refining performance management[43][46]. - The total staff cost for the Group during the Reporting Period was RMB 7.9 million, a decrease from RMB 8.8 million in the same period of 2020[129]. - The Group did not face any major recruitment difficulties or significant manpower loss during the Reporting Period[133]. - The Group provides competitive remuneration packages, including basic salary and performance-based incentives, to motivate employees[145]. Share Option Scheme - The Company adopted a share option scheme to incentivize certain employees and retain their support for the Group's operations and development[135]. - The Share Option Scheme allows for a maximum of 160,000,000 shares to be issued, representing 9.46% of the issued share capital as of the report date[190]. - As of June 30, 2021, there were 15,650,000 options granted, with 2,500,000 options cancelled, leaving 13,150,000 options outstanding[198]. - The exercise price for the options is set at HK$0.568, which is based on the highest of the closing price on the grant date, the average closing price for the five business days prior, or the nominal value[200]. Risk Management - The Group's management assists the Board in evaluating material risk exposure and formulating appropriate risk management measures[140]. - The Company believes that risk management is essential for efficient and effective operations, addressing potential risks such as cost increases and supply disruptions[139]. - The Group complied with all relevant laws and regulations in the PRC during the Reporting Period, which significantly impacts its daily operations[148].

Financial Performance - Revenue increased by 74.2% to RMB2,049.8 million for the Reporting Period, up from RMB1,176.4 million in 2019[10] - Gross profit rose by RMB54.0 million to RMB273.8 million, with a gross profit margin decreasing from 18.7% in 2019 to 13.4%[11] - Net profit surged by 400.4% to RMB118.1 million, compared to RMB23.6 million in 2019, driven by increased gross profit and reduced expenses[12] - Basic and diluted earnings per share for the year ended December 31, 2020, were RMB0.070, up from RMB0.014 in 2019[13] - Profit before tax for the year was RMB135.955 million, a significant recovery from previous losses[15] - The net profit margin improved to 5.8%, compared to a loss margin in the previous year[15] - The Group recorded revenue of RMB2,049.8 million for the Reporting Period, representing an increase of RMB873.4 million, or 74.2% compared to RMB1,176.4 million in 2019[49] - The Group's net profit for the Reporting Period was RMB118.1 million, an increase of RMB94.5 million compared to RMB23.6 million in 2019[62] Revenue Sources - Revenue from sales of Human Albumin Solution increased by approximately RMB1,040.8 million, primarily due to higher sales volume[10] - The human albumin solution revenue reached RMB 1,889.0 million, representing a 122.7% increase or RMB 1,040.8 million compared to 2019[36] - Revenue from sales of antibiotics decreased by RMB165.2 million compared with 2019, primarily due to the COVID-19 outbreak leading to a drop in hospital inpatients[50] - Revenue from human albumin solution stood at RMB1,889.0 million, representing an increase of approximately 122.7% or RMB1,040.8 million compared with 2019[50] Cost and Expenses - The Group recorded cost of sales of RMB1,776.0 million, representing an increase of RMB819.4 million, or 85.7% compared with RMB956.6 million in 2019[52] - Selling and distribution expenses were approximately RMB89.8 million, a decrease of RMB24.7 million compared with 2019, due to reduced marketing promotion expenses[55] - Administrative expenses were RMB40.6 million, similar to 2019, including staff costs of RMB8.9 million and intermediary service fees of RMB9.2 million[56] - The Group recorded finance costs of RMB8.8 million, a decrease of RMB11.2 million compared to 2019, primarily due to the repayment of other interest-bearing loans in January 2020[62] - Income tax expenses decreased by RMB1.6 million or 8.2% to RMB17.8 million compared to 2019, mainly due to the utilization of tax losses from previous periods[62] Market Strategy and Expansion - The company is focused on expanding its market presence and enhancing product offerings in the pharmaceutical sector[10] - The company optimized its sales channels, expanding its marketing network to cover major hospitals and penetrate second and third-tier cities[33] - The Group plans to increase the supply of human albumin products to the Chinese market in 2021 based on forecasts from Octapharma[42] - The Group aims to maximize value for shareholders and stakeholders by improving competitiveness in the pharmaceutical industry[44] - The Group plans to optimize its marketing network and product portfolio while maintaining blood products and antibiotics as core therapeutic areas[119][120] Inventory and Receivables - Inventory balances amounted to RMB242.6 million as of 31 December 2020, a decrease of RMB16.7 million from RMB259.3 million at the end of 2019, primarily due to a reduction in human albumin solution inventory[62] - Trade receivables increased to RMB578.7 million as of 31 December 2020, up RMB552.7 million from RMB26.0 million in 2019, mainly due to most trade receivables being covered by letters of credit[64] - The balance of bills receivables as of 31 December 2020 was nil, down from RMB4.7 million in 2019[65] - Trade payables amounted to RMB700.3 million as of 31 December 2020, an increase of RMB399.8 million compared to RMB300.5 million in 2019, driven by increased payables for human albumin solution purchases[68] Cash Flow and Financial Health - The Group's net cash inflow from operating activities was approximately RMB 137.3 million in 2020, compared to a net cash outflow of RMB 9.5 million in 2019[81] - The Group's net cash outflow from investing activities amounted to approximately RMB 46.8 million in 2020, significantly higher than the RMB 2.5 million outflow in 2019, primarily due to capital expenditure on leasehold land[82] - The Group's net cash outflow from financing activities was approximately RMB 169.9 million in 2020, a reversal from a net inflow of RMB 156.4 million in 2019, mainly due to repayment of borrowings and other payables[83] - The Group's gearing ratio improved to 84.8% in 2020 from 91.9% in 2019, indicating a reduction in financial leverage[77] - Cash and cash equivalents at the end of 2020 were RMB 143.8 million, down from RMB 224.8 million at the end of 2019[85] - The Group's total equity increased to RMB 164.4 million in 2020 from RMB 46.3 million in 2019, reflecting improved financial health[77] Risk Management and Compliance - The Group emphasizes the importance of risk management to ensure efficient operations and has implemented internal control measures[161] - The Group's operations are significantly impacted by foreign exchange fluctuations, particularly as purchases from overseas suppliers are denominated in USD[164] - The Group has not incurred any material compliance costs related to environmental laws during the reporting period[170] - The Group's business is subject to laws and regulations in multiple jurisdictions, including the Cayman Islands and Hong Kong, and has complied with all relevant regulations[170] Management and Governance - The Group's management team has extensive experience in the pharmaceutical industry, enhancing its strategic capabilities[174] - Ernst & Young was appointed as the auditor for the year ended December 31, 2020, and identified errors during the audit of opening balances[130] - The company is committed to maintaining high standards in financial reporting and governance practices[191] - The management team emphasizes the importance of internal control systems and financial strategic planning for sustainable growth[195] Future Outlook - The demand for albumin is expected to increase in 2021 due to the clinical necessity and lack of substitute products, with a short supply anticipated early in the year[116][117] - The price of albumin is projected to continue rising in the short term, driven by supply-demand imbalances[116][117] - Future outlook includes a focus on increasing operational efficiency and expanding into new markets[198]

Financial Performance - The Group's revenue increased by 18.8% or RMB100.9 million to RMB636.3 million for the Reporting Period, compared to RMB535.4 million for the six months ended June 30, 2019[7]. - Revenue for the six months ended June 30, 2020, was RMB 636.3 million, an increase from RMB 535.4 million in the same period of 2019, representing an increase of approximately 18.8%[9]. - Gross profit increased by RMB17.7 million to RMB108.6 million, with a gross profit margin increase from 17.0% to 17.1%[7]. - Gross profit for the same period was RMB 108.6 million, compared to RMB 90.9 million in 2019, resulting in a gross margin of 17.1%[9]. - The Group recorded a net profit of RMB32.5 million, up from RMB15.2 million for the six months ended June 30, 2019[7]. - Net profit attributable to owners of the Company amounted to RMB32.5 million, representing an increase of RMB17.3 million[7]. - Basic earnings per share amounted to RMB0.019, compared to RMB0.009 for the six months ended June 30, 2019[7]. - Profit before tax increased to RMB 30.2 million from RMB 21.8 million year-on-year, reflecting a growth of approximately 38.5%[9]. Revenue Breakdown - Revenue from sales of human albumin solution increased by approximately RMB141.6 million, while revenue from sales of antibiotics and other products decreased by approximately RMB40.7 million[7]. - Revenue from the sales of Human Albumin Solution was RMB 503.1 million, representing an increase of approximately 39.2% compared to the same period in 2019[24]. - Revenue from antibiotics decreased by RMB38.7 million compared to the corresponding period in 2019, primarily due to the COVID-19 pandemic impacting hospital inpatient numbers[56]. Assets and Liabilities - The total assets decreased to RMB 701.4 million as of June 30, 2020, down from RMB 832.3 million at the end of 2019[9]. - Total liabilities were reduced to RMB 622.7 million from RMB 786.1 million, indicating a decrease of approximately 20.8%[9]. - Trade receivables increased to RMB 54.3 million as of June 30, 2020, up RMB 28.3 million from RMB 26.0 million at the end of 2019, mainly due to higher balances in antibiotics[74]. - Bills receivables rose to RMB 42.5 million, an increase of RMB 37.8 million compared to RMB 4.7 million at the end of 2019, primarily due to increased sales of human albumin solution[75]. - Inventory balances amounted to RMB 268.2 million as of June 30, 2020, an increase of RMB 8.9 million from RMB 259.3 million at the end of 2019[72]. - Other payables and accruals increased to RMB 244.7 million, up RMB 127.8 million from RMB 116.9 million at the end of 2019, mainly due to increased payables related to import agent contracts[78]. - The non-current portion of other payables decreased to RMB 45.7 million, down RMB 84.4 million from RMB 130.1 million at the end of 2019, primarily due to a reduction in payables related to import agent contracts[84]. Cash Flow and Liquidity - The Group experienced a net cash outflow from operating activities of approximately RMB 88.7 million for the six months ended June 30, 2020, compared to a net cash inflow of RMB 119.1 million for the same period in 2019[93][95]. - Net cash inflow from investing activities was RMB 2.3 million during the reporting period, a significant improvement from a net cash outflow of RMB 0.2 million in the prior year[94][96]. - The net cash outflow from financing activities was approximately RMB 52.2 million, a decrease from RMB 167.8 million in the same period of 2019, primarily due to loan repayments and interest payments[100]. - Cash and cash equivalents at the end of the reporting period totaled RMB 123.3 million, down from RMB 224.8 million at the end of 2019, reflecting a decrease of 45.0%[101]. - Trade payables decreased to RMB 163.0 million from RMB 300.5 million, indicating improved management of supplier payments[91]. - The Group's liquidity management includes strict control over receivables and ongoing assessment of customer creditworthiness[99]. Operational Developments - The supply of human albumin products in the Chinese market reached 30.81 million (standardized in 10g), an increase of 8.1 million from the same period in 2019[21]. - The volume of imported human albumin products accounted for 66% of the total supply in the Chinese market in the first half of the year[21]. - The company expects continued growth in the supply of human albumin solutions for the second half of 2020, leading to an increase in full-year revenue[24]. - The pandemic has created opportunities for growth in certain blood products, which are expected to benefit in the post-pandemic era[21]. - The company's sales model transformation completed in 2019 and the turnaround in profit have laid a solid foundation for positive performance in 2020[27]. - The human albumin product holds a market share of approximately 14% in China as of the first half of 2020, up from 5.5% in the first half of 2019[29]. - The marketing team has streamlined its structure and refined performance management, optimizing the allocation of sales resources to enhance operational efficiency[34]. - The implementation of the "Two-Invoice System" has accelerated, leading to a comprehensive restructuring of the distributor network to improve market penetration[35]. - The group has improved direct participation in product marketing activities, including regular training for third-party promoters and participation in medical conferences[39]. Corporate Governance and Compliance - The Company has complied with all applicable code provisions under the Corporate Governance Code during the Reporting Period[140]. - The Group's operations are subject to laws and regulations of the Cayman Islands, British Virgin Islands, Hong Kong, and the PRC, and compliance has been maintained[135]. - The Audit Committee reviewed the unaudited condensed interim results of the Group for the Reporting Period[148]. - The Group did not incur any material cost of compliance with relevant environmental laws and regulations during the Reporting Period[136]. Shareholder Information - As of June 30, 2020, Mr. Huang holds 1,050,000,000 shares, representing 62.06% of the total shares issued, which amounts to 1,691,890,585 shares[164][166]. - The total number of shares in issue as of June 30, 2020, is 1,691,890,585[166][185]. - The company has adopted a Share Option Scheme to incentivize eligible participants for their contributions[187][188]. - The Share Option Scheme allows for a maximum issuance of 160,000,000 shares, representing 9.46% of the issued share capital as of the report date[195]. - Each participant's total shares issued upon exercise of options in any 12-month period shall not exceed 1% of the total shares in issue unless approved by shareholders[195]. - The Share Option Scheme is valid for ten years from February 1, 2016, with approximately 5 years and 7 months remaining as of June 30, 2020[194]. - Eligible participants include full-time or part-time employees, executives, and directors of the company and its subsidiaries[193].

Financial Performance - The Group's revenue increased by 23.4% or RMB223.4 million to RMB1,176.4 million for the Reporting Period (2018: RMB953.0 million), with revenue from Human Albumin Solution sales increasing by approximately RMB299.8 million due to higher sales volume[7]. - Gross profit decreased by RMB5.0 million to RMB216.0 million (2018: RMB221.0 million), while gross profit margin fell from 23.2% in 2018 to 18.4% for the Reporting Period, primarily due to a decrease in gross profit from antibiotics[8]. - The Group recorded a net profit of RMB22.9 million during the Reporting Period, a turnaround from a net loss of RMB280.6 million in 2018, mainly due to reduced selling and distribution expenses, administrative expenses, and finance costs[9]. - Net profit attributable to owners of the Company amounted to RMB22.9 million (2018: net loss of RMB280.6 million), representing an increase in net profit by RMB303.5 million[9]. - Basic and diluted earnings per share were RMB0.014 for the Reporting Period, compared to a loss per share of RMB0.166 in 2018[10]. - Revenue for 2019 reached RMB 1,176,409,000, representing a 23.5% increase from RMB 952,957,000 in 2018[13]. - Gross profit for 2019 was RMB 216,036,000, with a gross margin of 18.4%, compared to 23.2% in 2018[13]. - The company reported a profit before tax of RMB 42,301,000 in 2019, a significant recovery from a loss of RMB 272,015,000 in 2018[13]. - Profit attributable to owners of the company for 2019 was RMB 22,898,000, compared to a loss of RMB 280,614,000 in 2018[13]. Revenue Sources - Revenue from sales of Human Albumin Solution increased by RMB299.8 million, or approximately 54.7% for the Reporting Period compared to 2018, benefiting from exclusive distribution rights in China[51]. - Revenue from sales of antibiotics decreased by RMB70.4 million, representing a decrease of approximately 17.8% due to tough market competition[52]. - The Group's revenue from Human Albumin Solution reached RMB 848.2 million, representing an increase of approximately 54.7% or RMB 299.7 million compared to 2018[34]. - A total of 53.4 million vials of Human Albumin were released in the market during the reporting period, marking a 15.3% increase from 2018[32]. - The Group distributed approximately 3.01 million vials of Human Albumin Solution, reflecting a significant year-on-year increase of approximately 54.8%[35]. Cost Management - The Group recorded cost of sales of RMB960.4 million, an increase of RMB228.5 million, or 31.2% compared to RMB731.9 million in 2018[56]. - Selling and distribution expenses decreased to approximately RMB114.5 million, a reduction of RMB154.1 million compared to 2018, mainly due to reduced market development expenses[56]. - The Group recorded finance costs of RMB20.0 million, a decrease of RMB14.8 million compared to 2018[58]. - Income tax expenses were RMB19.4 million, an increase of RMB10.8 million compared to 2018, reflecting profitable operations[59]. Market Strategy - The company improved its sales and marketing system to enhance market share in tier 2 and tier 3 cities[30]. - The implementation of volume-based procurement policies has significantly impacted the pricing strategies within the pharmaceutical industry[26]. - The Group aims to optimize its cost control capabilities through the "Two-Invoice System" and centralized procurement[25]. - The Group plans to further expand its market share in 2020 based on the smooth establishment of sales channels and a substantial rebound in sales volume[35]. - The Group aims to actively seek opportunities in upstream and downstream industries within the pharmaceutical sector to enhance its core competitiveness and profitability[42]. Operational Efficiency - The average inventory turnover days decreased by 37.7 days from 126.2 days in 2018 to 88.5 days in the Reporting Period[64]. - Trade receivables increased to RMB26.0 million as of December 31, 2019, up by RMB3.2 million from RMB22.8 million at the end of 2018[66]. - Outstanding bills receivable rose to RMB4.7 million as of December 31, 2019, compared to RMB3.4 million at the end of 2018[66]. - Trade payables increased to RMB146.2 million as of December 31, 2019, representing an increase of RMB39.3 million from RMB106.9 million at the end of 2018[66]. - Other payables amounted to RMB333.7 million as of December 31, 2019, an increase of RMB128.2 million compared to RMB205.5 million at the end of 2018[66]. Employee Management - The Group's total staff costs for the reporting period were RMB12.5 million, a decrease from RMB13.8 million in 2018, with a total of 107 employees as of December 31, 2019[124]. - The Group has 107 employees and conducts annual performance appraisals to inform salary reviews and promotions[132]. - The Group has implemented a Remuneration Management System and provides allowances for transport and lunch to enhance employee welfare[156]. - The Group has established a "Staff Referral Award" to encourage current employees to recommend potential talents[165]. - The Group ensures zero tolerance for discrimination in employment based on gender, age, ethnicity, nationality, and disability[168]. Quality Control and Compliance - The Group has established standardized procurement documents for various pharmaceutical products to ensure quality and safety[185]. - The Group strictly complies with national laws and regulations on product safety, including the PRC Pharmaceutical Administration Law and its Implementation Regulations[192]. - The Group has a comprehensive system for quality inspection and product recall, ensuring all operations follow standard processes[197]. - The Group actively provides internal training on safety and quality management to ensure compliance with quality standards[192]. - The Group did not recall any products due to quality issues and received no complaints about its products and services[200]. Future Outlook - The demand for human albumin is expected to increase in the short term due to the COVID-19 pandemic, which is anticipated to boost product sales[96][101]. - The Group aims to become a top partner for overseas pharmaceutical businesses entering the Chinese market, focusing on excellence in product quality and pharmaceutical technology services[144]. - The Chinese pharmaceutical industry is expected to experience long-term rigid demand driven by factors such as an aging population and increased health awareness, presenting both opportunities and challenges[117][118].

Financial Performance - Revenue decreased by 6.7% or RMB38.5 million to RMB535.4 million for the Reporting Period, compared to RMB573.9 million for the six months ended June 30, 2018[8]. - Gross profit decreased by RMB24.0 million to RMB90.9 million, with a gross profit margin decline from 20.0% to 17.0%[9]. - The Group recorded a net profit of RMB15.2 million, a significant increase of RMB63.9 million compared to a net loss of RMB48.7 million for the same period in 2018[11]. - Basic earnings per share amounted to RMB0.009, compared to a basic loss per share of RMB0.029 for the six months ended June 30, 2018[11]. - Revenue for the first half of 2019 was RMB 535.4 million, a decrease of 6.7% compared to RMB 573.9 million in the same period of 2018[13]. - Gross profit for the first half of 2019 was RMB 90.9 million, down from RMB 114.9 million in the previous year, resulting in a gross margin of 17.0% compared to 20.0%[13]. - The company reported a net profit of approximately RMB 15.2 million for the first half of 2019, a significant turnaround from a net loss of RMB 48.7 million in the same period of 2018[13]. Revenue Breakdown - Revenue from sales of Human Albumin Solution increased by approximately RMB43.3 million, while revenue from antibiotics and other products decreased by approximately RMB35.5 million and RMB46.3 million respectively[8]. - Human albumin solution revenue amounted to RMB 361.5 million, representing a 13.6% increase compared to the same period in 2018[28]. - Revenue from antibiotics decreased by RMB35.4 million due to tough market competition and the cessation of sales for a non-core product[62]. Cost and Expenses - Selling and distribution expenses, administrative expenses, and finance costs decreased compared to the corresponding period of 2018, contributing to the net profit increase[11]. - The Group's cost of sales was RMB444.5 million, a decrease of RMB14.5 million, or 3.2% compared to RMB459.0 million in the corresponding period of 2018[64]. - Selling and distribution expenses were approximately RMB 44.5 million, a decrease of RMB 73.8 million compared to the same period in 2018, mainly due to significantly reduced market development expenses[72]. - Administrative expenses decreased to RMB 21.0 million, down RMB 6.2 million from the same period in 2018, primarily due to a reduction in professional service fees[74]. Assets and Liabilities - Total assets as of June 30, 2019, were RMB 380.9 million, a decrease from RMB 611.8 million at the end of 2018[13]. - The total equity attributable to owners of the company increased to RMB 38.8 million from RMB 23.6 million at the end of 2018[13]. - Trade receivables increased to RMB 59.6 million as of June 30, 2019, up RMB 36.8 million from the end of 2018, due to extended credit terms offered to certain distributors[79]. - Other payables decreased to RMB 26.0 million, down RMB 179.5 million from RMB 205.5 million at the end of 2018, reflecting reductions in various payable categories[82]. - Trade payables decreased to RMB81.8 million from RMB106.9 million as of December 31, 2018, a reduction of RMB25.1 million[85]. Cash Flow - Net cash generated from operating activities was approximately RMB119.1 million, an increase from RMB93.7 million in the same period last year[90]. - Net cash used in investing activities was RMB0.2 million, compared to RMB0.9 million in the prior year[90]. - Net cash outflow from financing activities was approximately RMB167.8 million, up from RMB88.3 million in the same period last year[92]. - Cash and cash equivalents at the end of the period were RMB31.5 million, down from RMB79.8 million at the end of the previous year[90]. Business Strategy and Operations - The company continues to focus on enhancing its product offerings and market presence to drive future growth[11]. - The restructuring of the business model and enhancement of the independent sales network led to reduced channel development costs and improved profitability[30]. - The Group plans to optimize its marketing network and product portfolio, focusing on blood products and antibiotics as core therapeutic areas[52]. - The Group aims to expand its business into the downstream hospital industry and explore cooperation opportunities for synergistic effects through integration[52]. Market and Competition - The market share of Octapharma's Human Albumin injection in China was approximately 5.5% in the first half of 2019, down from 8.0% in the same period of 2018[33]. - The Plasma Protein Therapeutics Association (PPTA) predicts continued high-speed growth in global market demand for blood products due to new indications and improved diagnosis rates[33]. Corporate Governance - The Company has complied with all applicable code provisions under the Corporate Governance Code during the Reporting Period[133]. - The Audit Committee has reviewed the unaudited condensed interim results of the Group for the Reporting Period[141]. - The Company replaced Ernst & Young with Crowe (HK) CPA Limited as its auditor due to a disagreement on audit fees[142]. Shareholder Information - As of June 30, 2019, Mr. Huang holds 1,050,000,000 shares, representing a 62.06% ownership interest in the Company[153]. - The total number of shares issued as of June 30, 2019, is 1,691,890,585[171]. - The maximum number of shares that may be issued upon exercise of all options under the Share Option Scheme is capped at 160,000,000, representing 9.46% of the issued share capital as of the report date[178]. Environmental and Compliance - The Group's operations primarily involve marketing and promoting imported pharmaceutical products, which do not have a significant environmental impact[127]. - During the Reporting Period, the Group did not incur any material costs related to compliance with environmental laws and regulations[129]. - The Group promotes paperless office practices and encourages low-carbon commuting as part of its environmental policies[128].