Financial Performance - The group's revenue increased by approximately RMB 171.5 million or 20.9% to about RMB 992.0 million for the year ended December 31, 2022[10]. - The group's gross profit rose by approximately RMB 143.2 million or 24.8% to about RMB 720.9 million for the same period[10]. - The group's EBITDA increased by approximately RMB 143.1 million or 50.8% to about RMB 424.9 million for the year ended December 31, 2022[10]. - Profit attributable to equity holders increased by approximately RMB 93.6 million or 49.9% to about RMB 281.2 million compared to the previous year[10]. - For the year ended December 31, 2022, the company's revenue was approximately RMB 992.0 million, an increase of about RMB 171.5 million or 20.9% compared to RMB 820.5 million for the year ended December 31, 2021[61]. - Revenue from the sales of Jin Sangzi throat lozenges (OTC) was approximately RMB 904.6 million, up by RMB 165.4 million or 22.4% from RMB 739.2 million in the previous year[61]. - The sales volume of Jin Sangzi throat lozenges (OTC) reached 126,686 thousand boxes, with a gross margin of 74.0%[62]. - Net profit for the year ended December 31, 2022, was approximately RMB 281.2 million, an increase of approximately RMB 93.6 million or 49.9% from approximately RMB 187.6 million for the year ended December 31, 2021[76]. - Gross profit for the year ended December 31, 2022, was approximately RMB 720.9 million, an increase of approximately RMB 143.2 million or 24.8% from approximately RMB 577.7 million for the year ended December 31, 2021, with a gross margin of 72.7%[67]. Product Development and Market Strategy - The company launched a new product, Golden Throat Probiotic Tablets, developed in collaboration with Beijing Agricultural University, targeting the lack of proprietary probiotics in China[14]. - The company aims to strengthen its brand core with sub-brands like "Throat Treasure," "Intestinal Treasure," and "Heart Treasure" to capture high-end market segments[15]. - The company is confident in achieving breakthroughs in the pharmaceutical and fast-moving consumer goods sectors in 2023[18]. - The company plans to continue investing in research and development for new products and technologies to maintain competitive advantage[31]. - The company is focusing on developing new products such as gene drugs, traditional Chinese medicine formulas, and health food products to drive growth in the health industry[59]. - The company aims to strengthen its brand recognition and market presence through enhanced digital marketing and advertising strategies[57]. - The company has successfully developed 32 new products since 1994, obtaining production licenses for 8 pharmaceutical products and 22 food products[42]. Market Presence and Recognition - The company received recognition as a leading enterprise in Guangxi and was awarded the most popular brand at the Guangxi Brand High-Quality Development Forum[12]. - In 2022, the company was ranked 48th among China's OTC production enterprises and received the title of "Most Popular Brand" at the Guangxi Brand High-Quality Development Forum[31]. - The flagship product, Golden Throat Lozenges (OTC), accounted for approximately 91.2% of the total revenue for the year ended December 31, 2022[35]. - The company has established a comprehensive national sales and distribution network covering all provinces, autonomous regions, and municipalities in China as of December 31, 2022[45]. - The company has signed agency agreements with all 10 ASEAN countries, successfully exporting products to nine of them[48]. - As of December 31, 2022, the Jin Sang Zi throat treasure series products have been exported to 22 countries and regions, with new additions including France, Spain, the Netherlands, Italy, and Ireland in 2022[44]. Operational Efficiency and Future Plans - The company completed the relocation to a new base and purchased an additional 50 acres of land for the Phase II project, which includes various research institutes[15]. - The company plans to enhance its production capacity through the construction of a new production base, which has a total area of approximately 60,000 square meters[58]. - The new production base will include a research and development center, production plant, warehouse, and administrative office building, aimed at improving manufacturing quality and competitiveness[58]. - The group plans to establish a health industry park and enhance its core competitiveness over the next decade[90]. - The group has initiated the exploration and surveying phase for the construction of a food production plant and R&D center[92]. Financial Management and Governance - The company is committed to maintaining high standards of corporate governance and compliance with regulatory requirements[31]. - The company has a strong focus on financial management, with key personnel having nearly three decades of experience in the field[110]. - The company has adopted a stable dividend policy, prioritizing a relatively certain cash dividend distribution amount as the primary profit distribution goal[126]. - The company reported a final dividend of HKD 0.36 per share for the year ended December 31, 2022, subject to shareholder approval[120]. - The financial statements for the year ended December 31, 2022, include a detailed review of the group's profit and financial position[119]. Challenges and Risks - The board's report includes discussions on future business development and potential risks and uncertainties facing the group[122]. - The management anticipates stable growth in sales as the pandemic situation improves and consumer demand increases[31]. - The company has not reported any significant events after the reporting period[89]. Shareholder Information - As of December 31, 2022, the total shares held by the founder of the trust amounted to 516,013,700 shares, representing approximately 69.79% of the total issued shares[163]. - The family trust holds 453,025,800 shares, representing approximately 61.28% of the total issued shares[169]. - The senior management trust holds 58,937,400 shares, accounting for 7.97% of the total issued shares[169]. - The company’s board and senior management have not reported any changes in their interests in shares or related securities as per the relevant regulations[161]. - The total number of shares that can be issued under the stock option plan is capped at 10% of the total issued shares as of the approval date, which amounts to 73,930,200 shares[155]. Related Party Transactions - The company engaged in related party transactions with Guangxi Changbao Biotechnology Co., Ltd., purchasing raw materials and finished products amounting to RMB 31,110 thousand, with actual transaction value of RMB 2,446 thousand for the year ended December 31, 2022[183]. - The company has a framework agreement with Changbao for the procurement of sugar substitute raw materials, which was renewed for the period from January 1, 2021, to December 31, 2023[186].

Financial Performance - The group's revenue increased by approximately RMB 171.5 million or 20.9% to approximately RMB 992.0 million for the year ended December 31, 2022[2]. - Gross profit rose by approximately RMB 143.2 million or 24.8% to approximately RMB 720.9 million compared to the previous year[2]. - EBITDA increased by approximately RMB 143.1 million or 50.8% to approximately RMB 424.9 million for the year ended December 31, 2022[2]. - Profit attributable to equity holders increased by approximately RMB 93.6 million or 49.9% to approximately RMB 281.2 million[2]. - Total comprehensive income for the year was RMB 289.1 million, compared to RMB 181.4 million in the previous year[6]. - The group's profit before tax reached RMB 281,218,000 in 2022, up from RMB 187,643,000 in 2021, representing a growth of 49.9%[28]. - The net profit for the year ended December 31, 2022, was approximately RMB 281.2 million, an increase of about RMB 93.6 million or 49.9% compared to RMB 187.6 million for the year ended December 31, 2021[66]. Revenue Breakdown - Revenue from external customers in mainland China for 2022 was RMB 984,383 thousand, an increase from RMB 817,130 thousand in 2021, representing a growth of approximately 20.5%[17]. - Total revenue for 2022 was RMB 992,014 thousand, compared to RMB 820,543 thousand in 2021, indicating a year-over-year increase of about 20.9%[21]. - Revenue from a major customer (Customer A) accounted for RMB 101,466 thousand in 2022, up from RMB 95,890 thousand in 2021, which is an increase of approximately 5.5%[19]. - Revenue from the sales of Jin Sang Zi throat lozenges (OTC) was approximately RMB 904.6 million, an increase of approximately RMB 165.4 million or 22.4% compared to RMB 739.2 million for the previous year[55]. Assets and Liabilities - Current liabilities totaled RMB 734.6 million, an increase from RMB 579.2 million in the previous year[7]. - Total assets less current liabilities amounted to RMB 1,564.7 million, up from RMB 1,374.0 million in the previous year[10]. - Cash and cash equivalents increased to RMB 895.5 million from RMB 722.8 million in the previous year[9]. - The company's total equity attributable to equity holders increased to RMB 1,539.1 million from RMB 1,365.1 million[11]. - Trade receivables increased to RMB 620,338,000 in 2022 from RMB 417,179,000 in 2021, reflecting a growth of 48.6%[29]. - The aging analysis of trade receivables shows that RMB 23,586,000 was within three months, up from RMB 20,771,000 in 2021[31]. - Trade payables rose to RMB 25,313,000 in 2022, compared to RMB 21,829,000 in 2021, marking an increase of 15.3%[32]. - The group had bank loans repayable within one year amounting to RMB 272,586,000 in 2022, an increase from RMB 234,597,000 in 2021[35]. Expenses and Costs - The total income tax expense for 2022 was RMB 94,775,000, compared to RMB 49,204,000 in 2021, indicating an increase of 92.5%[25]. - The financial costs for 2022 amounted to RMB 10,294,000, an increase of 29.0% from RMB 7,975,000 in 2021[27]. - The company's sales and distribution expenses were approximately RMB 279.0 million, an increase of approximately RMB 17.4 million or 6.7% compared to RMB 261.6 million for the previous year[61]. - The employee costs for the year ended December 31, 2022, were approximately RMB 80.4 million, compared to RMB 79.4 million for the same period in 2021[70]. Dividends - The board proposed a final dividend of HKD 0.36 per share, subject to approval at the upcoming annual general meeting[2]. - The proposed final dividend for 2022 is HKD 0.36 per share, which is double the HKD 0.18 per share proposed for 2021, totaling RMB 237,743,000 compared to RMB 108,802,000[26]. Product Development and Market Presence - The flagship product, Jin Sang Zi Throat Lozenges (OTC), accounted for approximately 91.2% of the total revenue for the year ended December 31, 2022[41]. - Jin Sang Zi Throat Treasure series products contributed about 8.2% to the total revenue for the year ended December 31, 2022[42]. - Other products, including Ginkgo Biloba tablets, represented approximately 0.6% of the total revenue for the year ended December 31, 2022[43]. - The company launched a new product, Jin Sang Zi Intestinal Treasure, in June 2022, which is a proprietary prebiotic aimed at enhancing gut health[44]. - The company aims to improve the health of Chinese consumers with its newly developed active probiotics, which have received six patents[44]. - The company’s sales revenue showed significant improvement in 2022, attributed to the recognition of its products in the treatment of throat symptoms related to COVID-19[40]. - As of December 31, 2022, the company has exported its products to 22 countries and regions, with new additions including France, Spain, the Netherlands, Italy, and Ireland in 2022, and Luxembourg, Croatia, and Estonia in early 2023[47]. - The distribution network covers all provinces, autonomous regions, and municipalities in China, with significant revenue derived from sales to distributors as of December 31, 2022[48]. - The company has established a presence in 53 countries and regions globally, including the US, Canada, Japan, and Australia, with the OTC product gaining registration in Malaysia, set to enter mainstream hospitals and clinics in Q2 2023[49]. Corporate Governance and Compliance - The company has adopted a corporate governance code to ensure shareholder rights and enhance corporate value and accountability[79]. - All directors have complied with the standard code regarding securities trading for the year ended December 31, 2022[80]. - The audit committee reviewed the accounting principles and policies, as well as the audited consolidated financial statements for the year ended December 31, 2022, and found the existing risk management and internal control systems to be effective and adequate[81]. - No purchase, sale, or redemption of the company's listed securities occurred during the year ended December 31, 2022[81]. - The annual report for the year ended December 31, 2022, will be sent to shareholders and published on the stock exchange and the company's website[81].

Financial Performance - The group's revenue decreased by approximately RMB 61.2 million or 16.4% to about RMB 312.1 million for the six months ended June 30, 2022[16]. - The group's gross profit decreased by approximately RMB 48.5 million or 17.6% to about RMB 227.1 million for the same period[16]. - The group's EBITDA decreased by approximately RMB 19.4 million or 16.4% to about RMB 99.1 million for the six months ended June 30, 2022[16]. - The profit attributable to equity holders of the company decreased by approximately RMB 24.8 million or 30.4% to about RMB 56.7 million for the six months ended June 30, 2022[16]. - For the six months ended June 30, 2022, the group's revenue was approximately RMB 312.1 million, a decrease of about RMB 61.2 million or 16.4% compared to RMB 373.3 million for the same period in 2021[37]. - Gross profit decreased to approximately RMB 227.1 million, down RMB 48.5 million or 17.6% from RMB 275.6 million in the same period last year, with a gross margin of 72.8% compared to 73.8% in 2021[42]. - Net profit for the six months ended June 30, 2022, was approximately RMB 56.7 million, a decrease of RMB 24.8 million or 30.4% from RMB 81.5 million in the same period last year, primarily due to decreased product sales[50]. - The company reported a total comprehensive income of RMB 58,768 thousand for the period, down from RMB 77,440 thousand in 2021[81]. - The company experienced a foreign exchange loss of RMB 4,071 thousand during the reporting period, impacting the overall financial results[85]. Market Position and Product Development - Golden Throat Holdings Group is recognized as a leading manufacturer of throat lozenges in China, ranking first in the "Traditional Chinese Medicine - Throat Category" in 2021[6]. - The company aims to expand its market presence and enhance its product offerings in the OTC segment[6]. - The flagship product, Jinsongzi throat lozenges (OTC), accounted for approximately 89.4% of total revenue for the six months ended June 30, 2022[25]. - The Jinsongzi throat treasure series products contributed about 9.7% to total revenue for the same period[26]. - The company has successfully developed 31 new products since 1994, obtaining production licenses for 8 pharmaceutical products and 21 food products[27]. - In June 2022, the company launched a new product, Jinsongzi composite probiotic lozenges, developed in collaboration with Beijing Agricultural University[26]. - The company plans to continue optimizing its product system based on consumer demand[24]. - The company continues to focus on the manufacturing and sales of pharmaceuticals and health products, with ongoing investments in new product development and market expansion strategies[88]. Sales and Distribution - As of June 30, 2022, the group has established a comprehensive national sales and distribution network covering all provinces, autonomous regions, and municipalities in China, with most revenue derived from sales to distributors[29]. - The group has successfully signed agency agreements with all 10 ASEAN countries, exporting products to nine countries excluding Laos, in response to the Belt and Road Initiative[30]. - The group has launched a flagship store on Tmall, introducing six new flavors of its throat lozenges, contributing to a dual development in retail pharmacies and online sales[30]. - Revenue from the sale of OTC Jin Sang Zi throat lozenges was approximately RMB 279.1 million, down RMB 54.2 million or 16.3% from RMB 333.3 million in the prior year, primarily due to the resurgence of COVID-19 in certain regions of China[37]. Operational Efficiency and Future Plans - The company aims to enhance organizational capabilities and digital marketing to drive future growth[24]. - A new production and R&D base in Liuzhou, Guangxi, covering approximately 60,000 square meters, has completed trial production, aimed at increasing production efficiency and product quality[34]. - The group is in the early construction phase of a second new base, expected to cover about 50,000 square meters, which will include a food production plant and R&D center[36]. - The new base will facilitate the development of innovative health products, including gene drugs and traditional Chinese medicine, enhancing the group's competitive edge in the health industry[36]. - The company plans to enhance its core competitiveness and expand its market share in the throat lozenge market while increasing production capacity and product offerings[60]. Financial Position and Assets - As of June 30, 2022, the group's current assets net value was approximately RMB 809.8 million, down from RMB 855.7 million as of December 31, 2021[51]. - Interest-bearing bank loans and other borrowings totaled approximately RMB 305.8 million as of June 30, 2022, an increase from RMB 235.0 million as of December 31, 2021, to supplement the group's working capital needs[52]. - As of June 30, 2022, the company's debt-to-equity ratio increased from approximately 17.2% to 23.3% compared to December 31, 2021[54]. - The total employee cost for the six months ended June 30, 2022, was approximately RMB 361 million, compared to RMB 353 million for the same period in 2021[57]. - The company has a total of RMB 20,579,000 in pledged receivables and RMB 64,863,000 in pledged deposits as of June 30, 2022[53]. - The company has no significant contingent liabilities as of June 30, 2022[54]. - The total assets as of June 30, 2022, were RMB 1,824,627 thousand, compared to RMB 1,953,179 thousand as of December 31, 2021[82]. - Current assets totaled RMB 1,319,196 thousand, a decrease from RMB 1,434,898 thousand at the end of 2021[82]. - Trade receivables and notes receivable totaled RMB 188,648,000 as of June 30, 2022, compared to RMB 415,971,000 at the end of 2021, indicating a significant reduction in receivables[104]. Governance and Compliance - The company confirmed that all directors complied with the standard code of conduct regarding securities trading for the six months ending June 30, 2022[66]. - The audit committee reviewed the unaudited interim consolidated financial statements for the six months ending June 30, 2022, and found the existing risk management and internal control systems to be effective and adequate[67]. - The group has applied the revised Hong Kong Financial Reporting Standards retrospectively from January 1, 2022, with no significant impact on its financial position or performance[93]. - The group has not identified any onerous contracts under the revised accounting standards, indicating no impact on its financial condition or performance[93].

Financial Performance - The group's revenue increased by approximately RMB 173.6 million or 26.8% to approximately RMB 820.5 million compared to the year ended December 31, 2020[8]. - The group's gross profit rose by approximately RMB 102.1 million or 21.5% to approximately RMB 577.7 million compared to the year ended December 31, 2020[8]. - The group's EBITDA increased by approximately RMB 48.5 million or 20.8% to approximately RMB 281.8 million compared to the year ended December 31, 2020[8]. - The profit attributable to equity holders increased by approximately RMB 33.5 million or 21.7% to approximately RMB 187.6 million compared to the year ended December 31, 2020[8]. - The group's revenue for the year ended December 31, 2021, was approximately RMB 820.5 million, an increase of about RMB 173.6 million or 26.8% compared to RMB 646.9 million for the year ended December 31, 2020[30]. - Revenue from the sales of Jin Sangzi throat lozenges (OTC) was approximately RMB 739.2 million, up RMB 157.4 million or 27.1% from RMB 581.8 million in the previous year, indicating recovery to pre-COVID-19 levels[30]. - The sales revenue from Jin Sangzi throat treasure series products was approximately RMB 71.7 million, an increase of RMB 18.0 million or 33.5% compared to RMB 53.7 million in the previous year[31]. - The group's gross profit for the year ended December 31, 2021, was approximately RMB 577.7 million, an increase of RMB 102.1 million or 21.5% from RMB 475.6 million in the previous year[35]. - The net profit for the year ended December 31, 2021, was approximately RMB 187.6 million, an increase of about RMB 33.5 million or 21.7% compared to RMB 154.1 million for the year ended December 31, 2020[42]. - The total comprehensive income for the year was RMB 181,363 thousand, compared to RMB 143,282 thousand in 2020, marking a growth of 26.6%[166]. Dividends and Shareholder Returns - The company plans to pay a final dividend of HKD 0.18 per share for the year ended December 31, 2021, subject to shareholder approval[8]. - The company reported a final dividend of HKD 0.18 per share for the year ended December 31, 2021, subject to shareholder approval at the annual general meeting on May 13, 2022[62]. - The company maintains a stable dividend policy, prioritizing consistent cash dividend distribution as a key profit allocation goal[65]. - The company declared dividends of RMB 36,562,000 for the year, a decrease from RMB 77,069,000 in the previous year, representing a reduction of about 52.5%[170]. Research and Development - The new pharmaceutical production and R&D base has been completed with a total area of approximately 60,000 square meters, including R&D center, production plant, warehouse, and administrative office[10]. - A new land parcel of 48 acres has been selected for the second phase of the new base, expected to have a construction area of approximately 50,000 square meters for food production and R&D center[10]. - The company aims to develop new products such as gene drugs, traditional Chinese medicine formulas, and specialty health foods through its new R&D platforms[10]. - The company plans to continue optimizing its product system and enhancing organizational capabilities in 2022, focusing on consumer demand and digital marketing[19]. - The company will enhance its production capacity, expand its product portfolio, and strengthen R&D capabilities to promote synergy among different product segments[48]. Market Position and Brand Recognition - The company has been recognized as the top brand in the "Traditional Chinese Medicine - Throat Category" in the 2021 statistics of non-prescription drug enterprises and products in China[9]. - The company is focused on achieving breakthroughs in the pharmaceutical and fast-moving consumer goods sectors in 2022[11]. - The company is a leading manufacturer of throat lozenges in China, ranking first in the "Traditional Chinese Medicine - Throat Category" in 2021[18]. - The company aims to strengthen its leading position in the throat lozenge market and expand its market share in the pharmaceutical and food sectors in China[48]. Operational Challenges and Responses - The company actively responded to the COVID-19 pandemic by resuming production and donating anti-epidemic materials[18]. - In 2020, the company faced challenges due to the pandemic, with a decline in offline sales channels such as pharmacies and supermarkets[18]. - The sales situation has recovered to pre-COVID-19 levels as of 2021, despite ongoing pandemic challenges[25]. - In 2021, the company achieved a recovery in sales to pre-COVID-19 levels, supported by the overall stabilization of the pandemic situation in China[19]. Financial Position and Assets - As of December 31, 2021, the company's current assets net value was approximately RMB 855.7 million, compared to RMB 696.4 million as of December 31, 2020[43]. - Total interest-bearing bank and other borrowings as of December 31, 2021, amounted to approximately RMB 235.0 million, an increase of RMB 82.5 million compared to RMB 152.5 million as of December 31, 2020[43]. - The company's asset-liability ratio increased from approximately 12.5% as of December 31, 2020, to approximately 17.2% as of December 31, 2021[43]. - The company reported a significant increase in inventory, which rose to RMB 64,963 thousand from RMB 38,843 thousand in 2020, a growth of 67%[167]. - The total equity as of December 31, 2021, was RMB 1,365,143 thousand, compared to RMB 1,220,342 thousand in 2020, reflecting an increase of 11.9%[168]. Governance and Management - The company has established a compensation committee to determine the compensation policy based on operational performance and market practices[83]. - The board of directors consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors[119]. - The company has complied with all applicable code provisions of the corporate governance code as of December 31, 2021[117]. - The independent non-executive directors have confirmed their independence according to the listing rules[119]. - The company encourages directors to seek independent professional advice at the company's expense when fulfilling their duties[129]. Compliance and Risk Management - The company has complied with all applicable laws and regulations, with no significant violations reported as of December 31, 2021[152]. - The company has established appropriate arrangements for employees to raise concerns regarding financial reporting and internal controls[138]. - The audit committee reviewed the effectiveness of the risk management and internal control systems and deemed them effective and adequate for the year ended December 31, 2021[142]. - The company has not purchased insurance for its directors against legal actions, believing that regular communication with management can effectively handle potential claims[141]. Future Outlook and Strategic Plans - The company aims to establish a new growth logic for its products to ensure healthy development in the future[19]. - The company plans to allocate approximately HKD 189.98 million (about 21% of the IPO proceeds) for transforming its headquarters into a food production plant and R&D center[52]. - The company intends to improve brand awareness through effective targeted marketing and continue to expand its distribution network[48]. - The company has not utilized any IPO proceeds for the establishment of the traditional Chinese medicine processing base as of December 31, 2021[52].

Financial Performance - Revenue increased by approximately RMB 169.4 million or 83.1% to approximately RMB 373.3 million for the six months ended June 30, 2021[12] - Gross profit rose by approximately RMB 123.3 million or 81.0% to approximately RMB 275.6 million for the same period[12] - EBITDA increased by approximately RMB 83.7 million or 240.5% to approximately RMB 118.5 million for the six months ended June 30, 2021[12] - Profit attributable to equity holders increased by approximately RMB 65.7 million or 415.8% to approximately RMB 81.5 million for the same period[12] - The group's revenue for the six months ended June 30, 2021, was approximately RMB 373.3 million, an increase of about RMB 169.4 million or 83.1% compared to RMB 203.9 million for the same period in 2020[32] - Revenue from the sales of Jin Sangzi throat lozenges (OTC) was approximately RMB 333.3 million, up by RMB 148.1 million or 80.0% from RMB 185.2 million in the previous year[32] - Revenue from the sales of Jin Sangzi throat treasure series products reached approximately RMB 35.2 million, a significant increase of RMB 20.1 million or 133.1% compared to RMB 15.1 million in the same period last year[32] - Net profit for the six months ended June 30, 2021, was approximately RMB 81.5 million, an increase of approximately RMB 65.7 million or 415.8% compared to approximately RMB 15.8 million for the same period in 2020[44] - Profit before tax increased significantly to RMB 97,620,000, compared to RMB 22,698,000 in the previous year, marking a 329.5% growth[72] Product and Market Development - The flagship product, Jinsongzi throat lozenges (OTC), accounted for approximately 89.3% of total revenue for the six months ended June 30, 2021[20] - The Jinsongzi throat treasure series products contributed about 9.4% to total revenue for the same period, with exports to 17 countries and regions[22] - Other products, including ginkgo biloba tablets and herbal drinks, represented approximately 1.3% of total revenue for the six months ended June 30, 2021[22] - The company aims to expand its market presence and enhance product offerings in the herbal beverage segment[17] - The group aims to expand its market share in China's pharmaceutical and food markets by optimizing its product system and enhancing organizational capabilities[30] - The group plans to enhance its production capacity by constructing a new production base, which is expected to be operational in the second half of 2021, covering an area of approximately 60,000 square meters[31] - The new production base will feature fully automated production lines, improving production efficiency and product quality, thereby enhancing the company's overall competitiveness[31] Distribution and Sales Channels - The distribution network consists of over 680 distributors covering all provinces, autonomous regions, and municipalities in China, with an increase in the number of distributors compared to the previous year[26] - The company has established a flagship store on Tmall since October 2018, enhancing its online sales capabilities alongside retail pharmacy sales[27] - Online sales channels have been continuously developed, with the launch of the Jin Sangzi WeChat mini-program mall in early 2020, indicating a shift towards e-commerce[30] - The company has signed agency agreements with all 10 ASEAN countries, actively responding to the "Belt and Road" initiative[26] Research and Development - Since 1994, the company has successfully developed 31 new products, obtaining production licenses for 8 pharmaceutical products, 21 food products, 1 health food, and 1 medical device[23] - The R&D team comprises approximately 275 personnel as of June 30, 2021, focusing on independent research and collaboration with external research institutions[23] - The group will enhance its production capacity, expand its product portfolio, and improve R&D capabilities to boost competitiveness[55] Financial Position and Assets - As of June 30, 2021, the group's current assets net value was approximately RMB 728.7 million, compared to approximately RMB 696.4 million as of December 31, 2020[45] - Total interest-bearing bank borrowings and other borrowings increased to approximately RMB 210.3 million as of June 30, 2021, from approximately RMB 152.5 million as of December 31, 2020[46] - The group's debt-to-equity ratio increased from approximately 12.5% as of December 31, 2020, to approximately 16.7% as of June 30, 2021, primarily due to the increase in interest-bearing borrowings[49] - Total assets as of June 30, 2021, amounted to RMB 1,261,738,000, an increase from RMB 1,225,241,000 at the end of 2020[77] - Current assets totaled RMB 1,232,250,000, compared to RMB 1,156,208,000 at the end of 2020, reflecting a growth of 6.6%[75] Employee and Management Information - As of June 30, 2021, the group employed a total of 952 full-time employees, an increase from 902 full-time employees as of June 30, 2020[51] - Employee costs for the six months ended June 30, 2021, were approximately RMB 35.3 million, compared to RMB 32.2 million for the same period in 2020, reflecting an increase of about 9.6%[51] - The company has adopted a stock option plan to incentivize selected participants for their contributions to the group's development and growth[51] Shareholder Information - As of June 30, 2021, the total number of issued shares was 739,302,000, with major shareholders holding significant stakes[64] - Mr. Zeng Yong holds 511,963,200 shares, representing approximately 69.79% of the total issued shares[64] - The family trust controlled by Mr. Zeng Yong holds 453,025,800 shares, accounting for 61.28% of the total issued shares[70] - The senior management trust holds 58,937,400 shares, which is about 7.97% of the total issued shares[70] Dividends and Financial Instruments - The group did not declare any interim dividends for the six months ended June 30, 2021[59] - The group has not made any significant investments or acquisitions of subsidiaries, associates, or joint ventures during the six months ended June 30, 2021[52] - The group did not use any financial instruments to hedge its foreign exchange risks as of June 30, 2021[50]

Financial Performance - Revenue decreased by approximately RMB 150.2 million or 18.8% to about RMB 646.9 million for the year ended December 31, 2020[10]. - Gross profit decreased by approximately RMB 122.9 million or 20.5% to about RMB 475.6 million for the year ended December 31, 2020[10]. - Profit attributable to equity holders decreased by approximately RMB 13.5 million or 8.1% to about RMB 154.1 million for the year ended December 31, 2020[10]. - The decrease in net profit was primarily due to reduced customer traffic in pharmacies and supermarkets caused by the pandemic[14]. - The group's revenue for the year ended December 31, 2020, was approximately RMB 646.9 million, a decrease of about RMB 150.2 million or 18.8% compared to RMB 797.1 million for the year ended December 31, 2019[60]. - Revenue from the sale of Jin Sang Zi throat lozenges (OTC) was approximately RMB 581.8 million, down RMB 139.4 million or 19.3% from RMB 721.2 million in the previous year, primarily due to reduced customer traffic caused by the COVID-19 pandemic[60]. - The group's gross profit decreased to approximately RMB 475.6 million, down RMB 122.9 million or 20.5% from RMB 598.5 million in the previous year, with a gross margin of 73.5% compared to 75.1% in 2019[65]. - Net profit decreased to RMB 154.1 million, down RMB 13.5 million or 8.1% from RMB 167.6 million in the previous year, mainly due to the decrease in revenue[73]. COVID-19 Impact - In 2020, the company faced challenges due to the COVID-19 pandemic, impacting offline sales channels[46]. - The COVID-19 pandemic impacted offline sales, leading to a decline in customer traffic in pharmacies and supermarkets[56]. - The company actively engaged in pandemic response efforts, utilizing resources for donations[46]. - The company donated over RMB 1.6 million in anti-epidemic materials during the COVID-19 pandemic[14]. Product Development and Market Strategy - A new pharmaceutical production and R&D base in Liuzhou, Guangxi, covering approximately 60,000 square meters, has been completed and is in trial production phase[15]. - The new automated production line is expected to enhance production efficiency and improve product quality and competitiveness[15]. - The company plans to continue expanding in the pharmaceutical and fast-moving consumer goods sectors in 2021[15]. - The company plans to continue optimizing its product system and enhancing organizational capabilities in 2021[47]. - The company plans to expand into new regional markets, including Qinghai, Jilin, and Inner Mongolia, while enhancing online sales channels[58]. - The company aims to strengthen its brand recognition and market presence through targeted advertising and collaboration with distributors[59]. - The company has successfully developed 31 new products since 1994, obtaining production licenses for these products[51]. Distribution and Sales - As of December 31, 2020, the distribution network consists of over 630 distributors covering all provinces, autonomous regions, and municipalities in China[54]. - The company has established an online flagship store on Tmall, offering six new products in the Golden Throat series, enhancing its distribution system[55]. - Revenue from the top five customers accounted for approximately 30.0% of total sales, with the largest customer contributing 8.9%[107]. - Procurement from the top five suppliers represented about 65.4% of total purchases, with the largest supplier accounting for 22.5%[107]. Corporate Governance - The company has established a solid framework for independent oversight through its independent non-executive directors[94]. - The board consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors, ensuring compliance with relevant listing rules[170]. - The independent non-executive directors have confirmed their independence according to the Listing Rules, contributing valuable business experience and expertise to the board[170]. - The company has adopted high standards of corporate governance to protect shareholder interests and enhance corporate value and accountability[168]. - The company provides relevant training to directors to ensure they understand their responsibilities and comply with listing rules[173]. Financial Position and Capital Management - As of December 31, 2020, the group's current assets net value was approximately RMB 696.4 million, compared to RMB 677.0 million as of December 31, 2019, maintaining a current ratio of 2.5[74]. - Interest-bearing bank loans and other borrowings totaled approximately RMB 152.5 million, an increase of RMB 56.4 million from RMB 96.1 million as of December 31, 2019[75]. - As of December 31, 2020, the group's debt-to-equity ratio increased from approximately 8.3% in 2019 to about 12.5%[77]. - The company's distributable reserves as of December 31, 2020, were approximately RMB 712.3 million, an increase from RMB 668.5 million as of December 31, 2019[109]. Employee and Management - The total employee cost for the year ended December 31, 2020, was approximately RMB 742 million, compared to RMB 691 million in 2019, reflecting an increase of about 7.4%[79]. - The group employed a total of 938 full-time employees as of December 31, 2020, up from 903 employees in the previous year, indicating a growth of approximately 3.9%[79]. - The company reported a significant increase in sales management experience, with over 18 years accumulated by the General Manager, Mr. Zeng Yong[91]. - The company has a strong leadership team with extensive experience in the pharmaceutical industry, with executives like Mr. Huang Jianping and Mr. Zeng Kexiong each having over 20 years of experience[92]. Stock Options and Shareholder Matters - The group had no outstanding stock options granted, exercised, canceled, or expired since the adoption of the stock option plan on June 8, 2017[118]. - The stock option plan aims to reward participants for their contributions to the group's development and growth[119]. - The total number of shares that can be issued under the stock option plan is capped at 10% of the total issued shares as of the approval date, which amounts to 73,930,200 shares[124]. - The company’s management trust holds 7.97% of the issued share capital, with specific individuals having defined shareholdings[133]. - The family trust holds 453,025,800 shares, representing approximately 61.28% of the total issued shares[137]. Related Party Transactions - The company had a continuous related party transaction with Changbao, procuring raw materials amounting to RMB 3,754,000 for the year ended December 31, 2020, against an annual cap of RMB 15,016,000[147]. - The company confirmed compliance with the non-competition agreement by the controlling shareholders for the year ended December 31, 2020[142]. - The procurement framework agreement with Changbao for sugar substitutes has been renewed for the period from January 1, 2021, to December 31, 2023[154]. Audit and Compliance - The audit committee has reviewed the accounting principles and policies adopted by the group for the year ended December 31, 2020, ensuring compliance with applicable accounting standards[162]. - Ernst & Young has been appointed as the auditor for the year ended December 31, 2020, and has not been changed since the company's listing on July 15, 2015[164]. - The company has established an internal audit department to review its financial condition, operational status, risk management, compliance monitoring, and internal controls[199]. - The board has confirmed that there are no significant uncertainties that may cast doubt on the group's ability to continue as a going concern[196].

Financial Performance - Revenue for the six months ended June 30, 2020, decreased by approximately RMB 150.7 million or 42.5% to approximately RMB 203.9 million compared to the same period in 2019[19] - Gross profit for the same period decreased by approximately RMB 109.2 million or 41.8% to approximately RMB 152.3 million[19] - EBITDA for the six months ended June 30, 2020, decreased by approximately RMB 33.0 million or 48.7% to approximately RMB 34.8 million compared to the same period in 2019[19] - Profit attributable to equity holders of the company decreased by approximately RMB 29.6 million or 65.2% to approximately RMB 15.8 million for the six months ended June 30, 2020[19] - For the six months ended June 30, 2020, the group's revenue was approximately RMB 203.9 million, a decrease of about RMB 150.7 million or 42.5% compared to RMB 354.6 million for the same period in 2019[37] - Sales revenue from the OTC throat lozenges was approximately RMB 185.2 million, down RMB 132.4 million or 41.7% from RMB 317.6 million in the same period of 2019[38] - Sales revenue from the throat treasure series products was approximately RMB 15.1 million, a decrease of RMB 16.8 million or 52.7% compared to RMB 31.9 million for the same period in 2019[38] - Net profit for the six months ended June 30, 2020, was approximately RMB 15.8 million, a decrease of approximately RMB 29.6 million or 65.2% compared to approximately RMB 45.4 million for the same period in 2019, primarily due to a decrease in revenue[49] - Basic and diluted earnings per share were RMB 0.02, compared to RMB 0.06 in the previous year[77] - The company reported a total comprehensive income of RMB 20,136,000 for the period, compared to RMB 47,557,000 in 2019[78] - The company reported a profit of RMB 15,838,000 for the six months ended June 30, 2020, compared to RMB 45,435,000 for the same period in 2019, reflecting a decrease of approximately 65.1%[81] Operational Highlights - The company is a leading manufacturer of throat lozenges in China, with a history dating back to 1956[13] - The flagship product, Jinsongzi throat lozenges (OTC), accounted for approximately 90.8% of total revenue as of June 30, 2020[27] - The Jinsongzi throat treasure series products contributed about 7.4% to total revenue as of June 30, 2020[28] - Other products, including ginkgo biloba tablets and herbal drinks, represented approximately 1.8% of total revenue as of June 30, 2020[28] - The company has successfully developed 31 new products since 1994, with 8 classified as pharmaceuticals and 21 as food products[29] - The distribution network consists of over 600 distributors covering all provinces, autonomous regions, and municipalities in China as of June 30, 2020[31] - The company has established a flagship store on Tmall for online sales, enhancing its distribution system[31] - The company has exported its products to 17 countries and regions as of June 30, 2020[28] Strategic Initiatives - The group plans to enhance its product offerings and expand its market share in the Chinese pharmaceutical and food markets[35] - The new production and R&D base in Liuzhou, Guangxi, is expected to increase the annual production capacity of OTC throat lozenges by approximately 57% after expansion[36] - The group aims to strengthen its brand recognition and image through increased advertising on broader internet media platforms[36] - The group has initiated the launch of its WeChat mini-program mall to enhance online sales channels[35] - The group is strategically expanding into new regional markets such as Qinghai, Jilin, and Inner Mongolia[35] Financial Position - Current assets net value decreased to approximately RMB 585.2 million as of June 30, 2020, from approximately RMB 677.0 million as of December 31, 2019, with a current ratio decrease from 2.5 to approximately 2.4[50] - Total interest-bearing bank borrowings increased to approximately RMB 199.7 million as of June 30, 2020, from approximately RMB 96.1 million as of December 31, 2019, to supplement the group's working capital needs[51] - The debt-to-equity ratio increased from approximately 8.3% as of December 31, 2019, to approximately 18.3% as of June 30, 2020, primarily due to the increase in bank borrowings[53] - Total assets as of June 30, 2020, were RMB 1,095,576,000, a decrease from RMB 1,164,109,000 at the end of 2019[79] - Current assets totaled RMB 1,017,604,000, down from RMB 1,139,803,000 at the end of 2019[79] - Cash and cash equivalents increased to RMB 684,587,000 from RMB 577,333,000 at the end of 2019[79] - The company’s total equity as of June 30, 2020, was RMB 1,094,011 thousand, down from RMB 1,154,129 thousand as of January 1, 2020, indicating a decrease of approximately 5.2%[81] Expenses and Costs - Selling and distribution expenses decreased to approximately RMB 106.6 million for the six months ended June 30, 2020, down by approximately RMB 67.1 million or 38.6% from approximately RMB 173.7 million for the same period in 2019, primarily due to reduced marketing expenses caused by the COVID-19 pandemic[44] - Administrative expenses increased to approximately RMB 29.0 million for the six months ended June 30, 2020, up by approximately RMB 1.8 million or 6.6% from approximately RMB 27.2 million for the same period in 2019, mainly due to depreciation from the completion of new drug production R&D facilities[45] - Financial costs increased to approximately RMB 6.3 million for the six months ended June 30, 2020, up by approximately RMB 2.6 million or 70.3% from approximately RMB 3.7 million for the same period in 2019, due to an increase in bank borrowings[47] - The group's sales cost decreased from approximately RMB 931.3 million for the six months ended June 30, 2019, to approximately RMB 516.1 million for the six months ended June 30, 2020, accounting for about 25.3% of total revenue during the same period[40] Employee and Management - As of June 30, 2020, the group employed a total of 902 full-time employees, an increase from 839 full-time employees as of June 30, 2019[56] - Employee costs for the six months ended June 30, 2020, were approximately RMB 32.2 million, compared to RMB 26.9 million for the same period in 2019, reflecting a year-on-year increase of about 19.6%[56] - The total compensation paid to key management personnel was RMB 5,988,000 for the six months ended June 30, 2020, an increase of 50.9% from RMB 3,968,000 in the same period of 2019[109] - The group’s short-term employee benefits increased to RMB 5,842,000 for the six months ended June 30, 2020, compared to RMB 3,679,000 in the same period of 2019, reflecting a growth of 58.8%[109] Dividends and Shareholder Information - The board did not declare any interim dividend for the six months ended June 30, 2020[62] - The company declared a final dividend of HKD 0.12 per ordinary share for the six months ended June 30, 2020, unchanged from 2019[96] - Major shareholder, Mr. Zeng Yong, holds 516,013,700 shares, representing approximately 69.79% of the total issued shares[67] - The family trust controlled by Mr. Zeng Yong holds 453,025,800 shares, accounting for 61.28% of the total issued shares[73] - The senior management trust holds 58,937,400 shares, which is 7.97% of the total issued shares[73] - Jin Chen Global holds 41,837,400 shares, representing 5.66% of the total issued shares[73] Research and Development - Research and development costs for the six months ended June 30, 2020, were RMB 912 thousand, a decrease of 38.2% from RMB 1,475 thousand in the same period of 2019[93] - The company committed to invest approximately RMB 63.2 million to build a new pharmaceutical production and R&D base in Liuzhou, Guangxi Zhuang Autonomous Region[58] - The company plans to relocate to a new pharmaceutical production and R&D base, which will enhance manufacturing quality and technical content, thereby improving overall competitiveness[59] COVID-19 Response - The company actively responded to the COVID-19 pandemic by organizing anti-epidemic materials and fundraising efforts[24] - The company purchased over 700 new energy electric vehicles to address employee transportation issues[24]

Financial Performance - Revenue increased by RMB 70.1 million or 11.2% to RMB 694.2 million compared to the year ended December 31, 2017[10] - Gross profit rose by RMB 80.9 million or 18.6% to RMB 516.5 million, with a gross margin of 74.4%[10] - EBITDA increased by RMB 54.7 million or 51.5% to RMB 160.9 million compared to the previous year[10] - Profit attributable to equity holders increased by RMB 40.8 million or 66.4% to RMB 102.2 million[10] - The company's revenue for the year ended December 31, 2018, was approximately RMB 694.2 million, an increase of about RMB 70.1 million or 11.2% compared to RMB 624.1 million for the year ended December 31, 2017[60] - The group's gross profit increased to RMB 516.5 million for the year ended December 31, 2018, up approximately RMB 80.9 million or 18.6% from RMB 435.6 million for the year ended December 31, 2017, with a gross margin rising from 69.8% to 74.4%[66] - Net profit for the year ended December 31, 2018, was approximately RMB 102.2 million, an increase of about RMB 40.8 million or 66.4% from RMB 61.4 million for the year ended December 31, 2017, mainly due to increased revenue[74] Market Expansion and Product Development - The company expanded its export markets, adding six new countries, bringing the total to 42 countries[16] - New export markets developed in 2018 include Vietnam, Kazakhstan, Kyrgyzstan, Maldives, and Brazil, covering five continents[43] - The company established a flagship store on Tmall in October 2018, launching a new online product series[17] - The group plans to enhance marketing strategies for OTC products and increase market share for Golden Throat lozenges in 2019[18] - The group aims to expand both international and domestic markets through increased investment in marketing channels and promotional efforts[18] - The company has successfully exported products to 42 countries, with six new export countries added in 2018, including Vietnam and Poland[53] - The group launched an online flagship store for Golden Throat lozenges on Tmall in 2018, introducing new product variants[44] - The company aims to transform its headquarters into a food production plant and R&D center to strengthen its food business and attract more customers[58] Research and Development - A new R&D base is in the equipment installation phase, with plans for trial production by the end of 2019[17] - The company plans to invest approximately RMB 57.8 million in R&D activities, having already spent RMB 2.2 million by December 31, 2018[48] - The group is focused on achieving breakthroughs in both pharmaceutical and fast-moving consumer goods sectors in 2019[18] - The annual production capacity of Jin Sangzi throat lozenges (OTC) is expected to increase by approximately 57% following the establishment of a new production and R&D base in Guangxi, which is currently in the equipment installation and decoration phase[58] Shareholder Information and Dividends - The company proposed a final dividend of HKD 0.12 per share for the year ended December 31, 2018, subject to shareholder approval[10] - The company reported a final dividend of HKD 0.12 per share for the year ended December 31, 2018, subject to shareholder approval at the annual general meeting on May 15, 2019[98] - As of December 31, 2018, the total issued shares were 739,302,000, with significant holdings by key individuals, including 69.79% held by a trust associated with Mr. Zeng Yong[131] Governance and Compliance - The company has complied with the corporate governance code and has adopted its own governance practices to protect shareholder interests[170] - The board of directors confirmed the independence of all independent non-executive directors according to the listing rules[112] - The company emphasizes compliance with relevant laws and regulations, as well as its environmental policies, detailed in the corporate governance report[101] - The company has established appropriate arrangements for employees to raise concerns regarding financial reporting and internal controls[197] Risks and Challenges - The company is facing risks related to maintaining relationships with distributors and changes in consumer preferences, which could adversely affect its reputation and profitability[59] - The management discussion and analysis section provides insights into the group’s future business development and potential risks, located on pages 14 to 28 of the report[101] Financial Management and Audit - The company has a financial risk management policy outlined in note 34 of the financial statements[101] - Ernst & Young has been appointed as the auditor for the year ending December 31, 2018, and has not been changed since the company's listing on July 15, 2015[167] - The Audit Committee is responsible for reviewing the company's financial information before submission to the board, ensuring the independence of external auditors, and monitoring the effectiveness of the audit process[196] Related Party Transactions - The company engaged in related party transactions, including procurement of raw materials from Guangxi Changbao Biotechnology Co., Ltd. for a total of 10,130[149] - The company has a trademark licensing agreement with Peizhen Investment, which is a related party[149] - The controlling shareholders have committed not to engage in any competing business activities directly or indirectly[143]