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].

Financial Performance - Revenue of the Group increased by 18.1% or RMB146.3 million to RMB953.0 million for the Reporting Period (2017: RMB806.7 million) with revenue from sales of Human Albumin Solution increasing by approximately RMB141.1 million due to higher sales volume [10]. - Gross profit of the Group increased by RMB127.5 million to RMB221.0 million for the Reporting Period (2017: RMB93.5 million), while gross profit margin improved from 11.6% in 2017 to 23.2% for the Reporting Period, primarily driven by increased selling prices of antibiotics [11]. - The Group recorded a net loss of RMB280.6 million during the Reporting Period (2017: RMB185.9 million), attributed to higher selling and distribution expenses and a loss on disposal of inventories of approximately RMB117.9 million [12]. - Loss attributable to owners of the Company amounted to RMB280.6 million (2017: RMB185.9 million), representing an increase in loss by RMB94.7 million [12]. - Basic and diluted loss per share amounted to RMB0.166 for the Reporting Period (2017: RMB0.115) [13]. - The Board resolved not to declare any final dividend for the Reporting Period (2017: Nil) [13]. - The increase in gross profit was mainly generated by the increase in selling price of antibiotics, contributing to the overall improvement in financial performance [11]. - The Group's financial performance was impacted by the increase in selling and distribution expenses, which outpaced the growth in gross profit [12]. - The significant loss on disposal of inventories indicates challenges in inventory management and cost control [12]. - The overall revenue growth reflects a positive trend in sales volume, particularly in the Human Albumin Solution segment [10]. Revenue Breakdown - Revenue from Human Albumin products reached RMB 548.4 million, a 34.6% increase or RMB 141.1 million compared to 2017 [39]. - Antibiotic products generated revenue of RMB 396.4 million, reflecting a growth of approximately 21.6% [39]. - Revenue from sales of Human Albumin Solution increased by RMB141.1 million, or approximately 34.6%, with sales volume increasing by approximately 44.8% during the Reporting Period [77]. - Revenue from sales of antibiotics increased by RMB70.3 million, representing an increase of approximately 21.6% due to adjustments in the marketing model and sales channels [78]. - Revenue from sales of other products decreased by approximately RMB65.1 million during the Reporting Period compared to 2017, as the Group concentrated resources on core products [79]. Assets and Liabilities - Total assets as of 2018 were RMB 611.76 million, a decrease from RMB 819.22 million in 2017 [23]. - The total liabilities for 2018 were RMB 589.04 million, up from RMB 546.49 million in 2017 [23]. - The Group's total borrowings amounted to RMB145.0 million as of December 31, 2018, down from RMB409.7 million in 2017 [115]. - The Group's equity decreased to RMB 22.7 million in 2018 from RMB 272.7 million in 2017 [118]. Inventory and Receivables - Inventory balances decreased to RMB214.8 million as of December 31, 2018, down RMB76.4 million from RMB291.2 million at the end of 2017, primarily due to enhanced marketing efforts [100]. - The average inventory turnover days increased to 126 days, up 16 days from 110 days in 2017 [100]. - Trade receivables amounted to RMB22.8 million as of December 31, 2018, down from RMB26.5 million in 2017, mainly related to antibiotic sales [104]. - Trade payables increased to RMB106.9 million as of December 31, 2018, up RMB84.4 million from RMB22.5 million at the end of 2017, with an average turnover days rising from 17 to 32 days [107]. Cash Flow and Financing - The Group reported a net cash inflow from operating activities of approximately RMB 105.8 million in 2018, a significant improvement from a net cash outflow of RMB 358.7 million in 2017 [121][124]. - The net cash outflow from investing activities was RMB 1.6 million in 2018, compared to a net cash inflow of RMB 72.0 million in 2017 [122][125]. - The net cash outflow from financing activities amounted to approximately RMB 99.5 million in 2018, down from a net cash inflow of RMB 209.5 million in 2017, primarily due to bond repayments of RMB 129.1 million [123][125]. - The Group's net debt decreased to RMB 379.0 million in 2018 from RMB 429.1 million in 2017, resulting in a gearing ratio of 94.3% compared to 61.1% in the previous year [118]. Operational Strategy - The Company is adapting its sales strategy to accommodate new policies in the pharmaceutical industry, focusing on expanding its marketing network to tier 2 and tier 3 cities [34]. - The implementation of the "Two-Invoice System" is expected to enhance the Company's sales management and market penetration [34]. - The Group aims to enhance its competitiveness in the plasma product and antibiotic markets through business model transformation and marketing network localization [42]. - The Group plans to actively seek opportunities in drug research and development and pharmaceutical cold chain logistics to improve core competitiveness and profitability stability [42]. - The Group aims to optimize its marketing network and product portfolio while maintaining blood products and antibiotics as core therapeutic areas [70]. Employee and Corporate Governance - The Group's employee remuneration policy considers local market conditions, industry standards, inflation, and employee performance, with annual performance appraisals conducted [144]. - The Group has implemented a strict recruitment system and maintains contact with recruitment agencies and universities to attract potential talents [184]. - The Group emphasizes equal employment opportunities, with zero tolerance for discrimination based on gender, age, ethnicity, nationality, or disability [185]. - The Group has established a comprehensive staff training system, including induction, internal training, and external training [190]. - The Group emphasizes corporate governance and fulfilling environmental and social responsibilities to achieve sustainable development [163]. Market Trends and Future Outlook - The Plasma Protein Therapeutics Association predicts high-speed growth in global blood product demand due to new indications and improved diagnosis rates [50][52]. - The Chinese pharmaceutical and healthcare industry is expected to experience strong growth driven by factors such as an aging population and increased health awareness [69]. - The overall inventory of the industry is anticipated to continue dropping sharply in 2019, indicating a recovery in the Human Albumin market [37].