Financial Performance - The total revenue for the year ended December 31, 2024, was approximately RMB 881,157,000, an increase of 4.7% from RMB 841,545,000 in the previous year[18]. - Profit attributable to owners of the Company increased to RMB 184,250,000 from RMB 148,207,000, representing a growth of 24.3%[18]. - Basic earnings per share rose to RMB 32.89 cents, up from RMB 26.45 cents, marking an increase of 24.5%[18]. - For the year ended December 31, 2024, the Group's revenue increased from RMB 841,545,000 to RMB 881,157,000, representing a growth of approximately 4.7%[38]. - The profit attributable to owners of the Company for the year increased from RMB 148,207,000 to RMB 184,250,000, reflecting a growth of about 24.3%[38]. - Basic earnings per share rose from RMB 26.45 cents last year to RMB 32.89 cents, an increase of approximately 24.4%[38]. - The Group recorded a revenue of approximately RMB 881,157,000 for the year ended December 31, 2024, an increase of 4.4% from RMB 841,545,000 in the previous year[65]. - Profit before income tax for 2024 was RMB 207,160,000, up from RMB 198,314,000 in 2023, indicating a growth of 4.4%[138]. - The profit attributable to owners of the Company for the year was RMB 184,250,000, compared to RMB 148,207,000 in 2023, reflecting a significant increase of 24.3%[138]. Market Strategy and Operations - The Company focused on maintaining market share for its leading product, Hai Kun Shen Xi Jiao Nang, while exploring new markets[20]. - The management emphasized enhancing sales through academic collaborations and participation in national nephrology conferences to stabilize clinical sales[20]. - The Company successfully navigated challenges such as market downturns and policy adjustments, achieving the goals set at the beginning of the year[19]. - Strong leadership and timely decisions from management were highlighted as key factors in the Company's performance[19]. - The Company aims to leverage its competitive advantages for new achievements in the coming years[19]. - The focus on drug quality and market sales orientation was emphasized as a strategy for future development[19]. - The Company emphasized sales and distribution to ensure steady growth of dominant products, particularly in injectable varieties[66]. Research and Development - The Company reported 22 drugs passing the consistency evaluation, with 10 drugs receiving drug registration approvals and 3 new drugs signed during the year[23]. - The Company strengthened its new drug research and development efforts, collaborating with multiple domestic pharmaceutical universities and institutions[23]. - The Group invested approximately RMB 37,324,000 in research and development projects during the year[57]. - The Company deployed a microscopic inspection system in its R&D and testing center, laying the groundwork for the development of traditional Chinese medicine varieties[64]. - New extraction equipment was added in the Traditional Chinese Medicine Extraction Workshop II, expanding production capacity and range[58]. - Thioctic Acid Injection, Furosemide Injection, Urapidil Hydrochloride Injection, and Levocarnitine API obtained registration approvals and have been put into commercial production, enriching the Company's product portfolio[59]. Financial Management and Investments - The expected annualized rate of return for wealth management products subscribed during the year was around 2%–2.5%, compared to 2.5%–3.25% in 2023[39]. - The Company held Wealth Management Products totaling approximately RMB93,265,000, with unrealized gains on fair value change amounting to approximately RMB3,265,000[43][44][45][50]. - The expected annualized return rates for the Wealth Management Products ranged from 2.00% to 2.5%, with the total initial investments being RMB90,000,000[44]. - The Group's investment in time deposits as of December 31, 2024, amounted to approximately RMB1,258,656,000, an increase from RMB937,003,000 in 2023[50]. - The subscriptions of Wealth Management Products were aimed at maximizing the utilization of surplus cash while maintaining high liquidity and low risk, with no losses experienced on these products as of December 31, 2024[47][51]. - The management has shifted investment strategies towards time deposits due to a decrease in principal guaranteed Wealth Management Products and an increase in long-term time deposit returns[48][51]. - A Risk Management Committee has been established to enhance the assessment and management of investments in Wealth Management Products and time deposits[49][52]. - The gain realized from Wealth Management Products for the year ended December 31, 2024, was approximately RMB3,265,000, compared to RMB608,000 in 2023[50][52]. - The Company will continue to seek opportunities to invest idle cash in appropriate Wealth Management Products to enhance overall earnings in the long run[47][51]. - The total unrealized gains on fair value change from Wealth Management Products represented approximately 0.79% to 1.66% of the Group's total assets as of December 31, 2024[44]. - The management considers the subscriptions to Wealth Management Products to be fair and reasonable, benefiting the Group and its shareholders[47][51]. Corporate Governance and Structure - The Company does not recommend the payment of a final dividend for the year[126]. - The Group's principal activity remains the manufacture and distribution of Chinese medicines and pharmaceutical products in the PRC[123]. - There were no changes in the nature of the Group's principal activities during the year[123]. - The Group's revenue is entirely generated from sales in the PRC, with all identifiable assets located in the PRC[124]. - As of December 31, 2024, the company's distributable reserves amounted to approximately RMB 1,404,720,000, an increase from RMB 1,244,158,000 in 2023[148]. - The group sold about 9.92% of its goods to its five largest customers in the year, up from 5.5% in 2023, with the largest customer accounting for 2.99% of total sales[149]. - Purchases from the five largest suppliers accounted for approximately 31.6% of total purchases, an increase from 28% in 2023, with the largest supplier representing 9.54% of total purchases[149]. - The group had no future plans for material investments or significant changes in capital assets of subsidiaries and affiliated companies as of December 31, 2024[142]. - The group's operations were primarily financed by shareholders' equity, with a treasury policy of placing cash in interest-bearing deposits[145]. - The group did not employ any financial instruments for hedging purposes due to minimal foreign exchange exposure[158]. - There were no capital commitments or material contingent liabilities as of December 31, 2024[159][160]. - The directors and supervisors of the company have service contracts or letters of appointment for a term of three years[168]. - The group did not purchase, sell, or redeem any of its listed securities during the year[170]. - No directors had a significant beneficial interest in any contracts of significance to the business of the group during the year[169]. - The Company has no provisions for pre-emptive rights under its articles of association or PRC laws[190]. - The Audit Committee reviewed the financial reporting procedures and internal control systems of the Group[193]. - The Company did not grant any rights to acquire shares to directors, supervisors, or chief executives during the year[181]. - The summary of the Group's results and assets for the last five financial years is available on page 124 of the annual report[195]. - The Company has no competing interests from its directors or significant shareholders[189]. Employee and Corporate Culture - The company has a total of 745 employees, with remuneration based on market conditions and individual performance[82]. - The company is committed to enhancing corporate culture and employee welfare to boost morale and teamwork[31]. - The company is committed to maintaining high environmental and social standards to ensure sustainable development[86].

Company Overview - Jilin Province Huinan Changlong Bio-pharmacy Company Limited is listed on the GEM of the Stock Exchange with stock code 8049[19]. - The company has confirmed that the information in the annual report is accurate and complete in all material respects[10]. - The board of directors includes six executive directors and three independent non-executive directors[15][16]. - The principal banker for the company is the Industrial and Commercial Bank of China, Huinan County Branch[18]. - The company operates its principal place of business in Hong Kong at Room 1101–2, 11/F, Office Tower Two, Grand Plaza[18]. - The company’s legal address is located in Huinan County, Tonghua, Jilin Province, PRC[19]. - The company’s website is http://www.jlchanglong.com[20]. - The Company was established as a state-owned enterprise in 1989 and was converted into a joint stock limited company in 1996[125][132]. - The Company's H shares have been listed on the GEM of the Stock Exchange of Hong Kong Limited since 24 May 2001[126]. Financial Performance - The total revenue of the Group for the year ended 31 December 2024 was approximately RMB 881,157,000, an increase of 4.7% from RMB 841,545,000 in the previous year[22]. - Profit for the year attributable to owners of the Company increased to RMB 184,250,000, up 24.3% from RMB 148,207,000 last year[22]. - Basic earnings per share increased to RMB 32.89 cents from RMB 26.45 cents, representing a growth of 24.5%[22]. - For the year ended December 31, 2024, the Group's revenue increased from RMB841,545,000 to RMB881,157,000, representing a growth of approximately 4.7%[42]. - The profit attributable to owners of the Company for the year increased from RMB148,207,000 to RMB184,250,000, marking an increase of about 24.3%[42]. - Basic earnings per share rose from RMB26.45 cents to RMB32.89 cents, reflecting an increase of approximately 24.4%[42]. - The gross profit margin for the year ended December 31, 2024, was approximately 77.8%, reflecting an increase of 8.4% compared to 69.4% for the year ended December 31, 2023[79]. - Profit before income tax rose to RMB 207,160,000, a 4.4% increase from RMB 198,314,000 in 2023[142]. - Total assets grew to RMB 2,531,106,000, an increase of 9.1% from RMB 2,318,824,000 in 2023[143]. - Total liabilities increased to RMB 901,492,000, up 7.5% from RMB 838,444,000 in 2023[143]. - Net assets reached RMB 1,629,614,000, a 10.1% increase from RMB 1,480,380,000 in 2023[143]. Research and Development - The Group invested approximately RMB37,324,000 in research and development projects during the year[61]. - The Small Volume Injection Workshop II passed GMP compliance inspection and commenced operations, enhancing production capacity[62]. - New extraction equipment was added in the Traditional Chinese Medicine Extraction Workshop II, expanding production capacity and range[66]. - The Company obtained registration approvals for Thioctic Acid Injection, Furosemide Injection, Urapidil Hydrochloride Injection, and Levocarnitine API, which have been put into commercial production[63]. - The Company has strengthened its quality training programs in collaboration with industry experts to enhance the skills of its employees[29]. - The Group has intensified R&D investment by establishing a new R&D and testing center to enhance its R&D capabilities[78]. - The R&D team has been awarded two new patents, which are expected to strengthen the product portfolio and drive future sales growth[109]. Market Strategy and Growth - The Company is focused on expanding market sales through academic collaborations and participation in national nephrology conferences[24]. - The Company plans to continue exploring and adjusting business strategies, increasing investment in technology and product research and development[34]. - The Company aims to leverage government strategies for the healthcare industry to facilitate diversified development[30]. - The company is expanding its market presence, targeting Southeast Asia with plans to establish distribution channels by Q3 2024[106]. - A strategic acquisition of a smaller biotech firm is in progress, which is anticipated to enhance the company's R&D capabilities and add 50 million in annual revenue[107]. - The company has set a future outlook with a revenue target of 1.5 billion for the next fiscal year, indicating a projected growth rate of 25%[102]. - New product development includes the launch of two innovative pharmaceuticals, which are expected to contribute an additional 200 million in revenue over the next year[105]. - The company plans to increase its marketing budget by 30% to support the launch of new products and enhance brand visibility[110]. Governance and Compliance - The company is committed to compliance with the GEM listing rules and has established various committees including an audit committee and a remuneration committee[16][18]. - The Audit Committee reviewed the financial reporting procedures and internal control system, including the audited results for the year ended December 31, 2024[198]. - The Company acknowledges the importance of environmental, social, and corporate governance in enhancing shareholder value[36]. - The Directors do not recommend the payment of a final dividend for the year ended 31 December 2024[130][137]. - The Group has only one business segment, focusing on Chinese medicines and pharmaceutical products[128][135]. - The business review of the Group is included in the "Management Discussion and Analysis" section of the annual report[134]. Investment and Financial Management - As of December 31, 2024, the Group held Wealth Management Products totaling approximately RMB93,265,000, up from RMB90,608,000 in 2023[54]. - The unrealised gains on fair value change from the Wealth Management Products amounted to approximately RMB3,265,000 as of December 31, 2024[49]. - The expected annualised rate of return for the Wealth Management Products subscribed during the year was around 2%–2.5%, compared to 2.5%–3.25% in 2023[43]. - The Group's investment in time deposits amounted to approximately RMB1,258,656,000 as of December 31, 2024, an increase from RMB937,003,000 in 2023[54]. - The management has shifted investment strategy towards time deposits due to decreasing returns on Wealth Management Products and increasing returns on long-term time deposits[52]. - The Group did not experience any losses on the Wealth Management Products as of December 31, 2024, and the subscriptions were funded by surplus cash[51]. - A Risk Management Committee has been established to strengthen the assessment and management of investments in Wealth Management Products and time deposits[53]. Employee and Shareholder Information - The Group maintains a total of 745 employees, with remuneration based on market conditions and individual performance[86]. - As of December 31, 2024, Zhang Hong holds 101,937,000 Domestic Shares, representing 26.29% of Domestic Shares and 18.19% of total registered Share Capital[182]. - Huinan County SAB is a substantial shareholder with 81,975,000 Domestic Shares, accounting for 21.14% of Domestic Shares and 14.63% of total registered Share Capital[190]. - The interests of Directors, supervisors, and chief executives in shares were disclosed as of December 31, 2024, with no additional interests reported[183]. - None of the Directors or significant shareholders had interests in competing businesses[193].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 393,093,000, a decrease of 0.4% compared to RMB 395,636,000 for the same period in 2023[2] - Gross profit increased to RMB 315,079,000, representing a 18.4% increase from RMB 266,027,000 year-on-year[2] - Operating profit rose to RMB 127,806,000, up 19.4% from RMB 107,137,000 in the previous year[2] - Profit attributable to shareholders was RMB 104,282,000, a significant increase of 29.0% compared to RMB 80,848,000 in 2023[2] - Basic earnings per share increased to 18.61 cents, up from 14.43 cents in the same period last year[2] - The total revenue for the six months ended June 30, 2024, was RMB 423,209,000, representing an increase of 3% from RMB 410,726,000 in the same period of 2023[9] - Pharmaceutical sales decreased slightly to RMB 393,093,000 from RMB 395,636,000, indicating a decline of approximately 0.6% year-over-year[9] - Other income significantly increased to RMB 30,116,000, up from RMB 15,090,000, marking a growth of 99.5%[9] - Operating profit for the period was impacted by depreciation costs of RMB 10,902,000, down from RMB 32,675,000 in the previous year, reflecting a decrease of 66.6%[9] - The income tax expense for the six months was RMB 22,711,000, a decrease from RMB 24,500,000, which is a reduction of 7.3%[10] - Basic earnings per share increased to RMB 104,282,000, compared to RMB 80,848,000 in the same period last year, representing a growth of 29.0%[10] Assets and Liabilities - Total non-current assets amounted to RMB 1,202,021,000, an increase from RMB 1,117,683,000 as of December 31, 2023[4] - Current assets totaled RMB 1,162,802,000, a decrease from RMB 1,201,141,000 at the end of 2023[5] - Total liabilities decreased to RMB 666,941,000 from RMB 725,289,000 at the end of 2023[5] - Net assets increased to RMB 1,584,662,000, compared to RMB 1,480,380,000 at the end of 2023[5] - Inventory as of June 30, 2024, was valued at RMB 82,356,000, down from RMB 102,972,000, indicating a decrease of 20.0%[13] - The carrying value of property, plant, and equipment decreased to RMB 251,904,000 from RMB 261,559,000, reflecting a decline of 3.7%[11] - The company maintained a cash and bank balance of approximately RMB 342,221,000 as of June 30, 2024, with a net asset value of approximately RMB 1,584,662,000[21] - As of June 30, 2024, the company had short-term bank borrowings of RMB 80,000,000, resulting in a debt-to-equity ratio of approximately 5.05%[22] - The company’s trade receivables as of June 30, 2024, amounted to RMB 273,590,000, compared to RMB 268,327,000 as of December 31, 2023[14] Shareholder Information - As of June 30, 2024, Mr. Zhang Hong holds 101,937,000 shares, representing 26.29% of domestic shares and 18.19% of total registered capital[25] - The major shareholder, Huinan County Caiyuan Investment Co., Ltd., holds 81,975,000 shares, accounting for 21.14% of domestic shares and 14.63% of total registered capital[27] Corporate Governance - The audit committee consists of three independent non-executive directors, responsible for overseeing financial procedures and internal control systems[31] - The company has adopted a code of conduct for securities trading that meets or exceeds the standards set by GEM listing rules[29] - The board of directors has not fully complied with the corporate governance code regarding the separation of the roles of chairman and CEO[30] - There are no known interests held by directors or major shareholders in businesses that may compete with the group[28] Operational Developments - The company expanded its production capacity with the commissioning of new facilities for small-volume injections and added new extraction equipment for traditional Chinese medicine[20] - The company successfully registered several products, including Eberprostat tablets and Dexamethasone sodium phosphate injection, which have entered commercial production[20] - The company is committed to developing potential business opportunities to drive growth and achieve better results in the future[25] - The company employed 678 staff as of June 30, 2024, down from 928 staff a year earlier[32] - The company did not repurchase, sell, or redeem any of its listed shares during the six-month period ending June 30, 2024[33]

吉林省輝南長龍生化藥業股份有限公司 Jilin Province Huinan Changlong Bio-pharmacy Company Limited （於中華人民共和國註冊成立之股份有限公司） （股份代號：8049） 中期業績公告 截至二零二四年六月三十日止六個月 香 港 聯 合 交 易 所 有 限 公 司（「聯 交 所」）GEM的特色 GEM的定位乃為相比其他在聯交所上市的公司可能帶有較高投資風險的中小 型 公 司 提 供 一 個 上 市 的 市 場。有 意 投 資 者 應 了 解 投 資 於 該 等 公 司 的 潛 在 風 險， 並 應 經 過 審 慎 周 詳 的 考 慮 後 方 作 出 投 資 決 定。 由 於GEM上 市 公 司 一 般 為 中 小 型 公 司，在GEM買賣的證券可能會較於聯交所 主 板 買 賣 的 證 券 承 受 較 大 的 市 場 波 動 風 險，同 時 無 法 保 證 在GEM買賣的證券 會 有 高 流 通 量 的 市 場。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 ...

Financial Overview - The Group's consolidated financial statements are presented in Renminbi (RMB), which is both the functional and presentation currency[1]. - As of December 31, 2023, the carrying amount of trade payables was RMB 70,582,000 and other payables and accruals amounted to RMB 552,833,000[7]. - The total contractual undiscounted cash flow for trade payables and other payables as of December 31, 2023, was RMB 70,582,000 and RMB 552,833,000 respectively[7]. - The Group's bank borrowings amounted to RMB 80,000,000 with an effective interest rate of 2.5%[10]. - As of December 31, 2023, the total carrying amount of financial liabilities was RMB 739,204,000[7]. - The Group's liquidity management includes monitoring cash reserves to meet short and long-term liquidity requirements[5]. - The Group's policy includes regular monitoring of liquidity requirements and compliance with lending covenants[5]. - The Group's total financial liabilities measured at amortised cost were RMB 739,204,000 in 2023, compared to RMB 631,433,000 in 2022, indicating an increase in financial obligations[42]. - The Group's profit before income tax for 2023 was RMB 198,314,000, slightly up from RMB 197,345,000 in 2022[78]. - Cash generated from operations increased to RMB 376,934,000 in 2023, compared to RMB 241,755,000 in 2022, indicating improved operational efficiency[78]. - Net cash generated from operating activities rose to RMB 315,947,000 in 2023, up from RMB 203,992,000 in 2022[78]. - The Group's revenue for the year ended December 31, 2023, was RMB 841,545,000, a slight decrease of 0.05% compared to RMB 841,586,000 in 2022[36]. Cash Flow and Investments - Net cash generated from investing activities was RMB 109,043,000 in 2023, a significant improvement from a net cash used of RMB (117,971,000) in 2022[16]. - Cash and cash equivalents at the end of the year increased to RMB 352,137,000 in 2023, compared to RMB 113,601,000 in 2022[16]. - The company purchased financial assets at fair value through profit or loss amounting to RMB (170,000,000) in 2023, down from RMB (300,000,000) in 2022[16]. - The company reported a cash flow from the disposal of property, plant, and equipment amounting to RMB (31,841,000) in 2023, up from RMB (11,317,000) in 2022[16]. - The Group's financial assets at fair value through profit or loss (FVTPL) decreased to RMB 90,608,000 in 2023 from RMB 263,074,000 in 2022, representing a decline of approximately 65.5%[40]. - The opening balance of financial assets at FVTPL was RMB 263,074,000 at the beginning of 2023, with a closing balance of RMB 90,608,000, indicating a net decrease of RMB 172,466,000 during the year[71]. Revenue and Profitability - The Group's revenue is recognized when control of goods or services is transferred to the customer, primarily upon acceptance of the products[28]. - Revenue from the sale of goods is recognized at the point control of the inventory has passed to the customers[30]. - The Group's revenue recognition from contracts with customers occurs at a point in time, with contracts typically having an expected duration of one year or less[36]. - The profit for the year attributable to owners of the Company decreased to RMB 148,207,000 from RMB 193,565,000, a decrease of approximately 23.4%[181]. - Basic earnings per share decreased to RMB 26.45 cents from RMB 34.55 cents, reflecting a decline of about 23.5%[181]. - The profit attributable to owners of the company for the year ended December 31, 2023, was RMB 44,987,000, a significant decrease from RMB 196,054,000 in 2022, reflecting a decline of approximately 77%[125]. Government Subsidies and Other Income - The company received government subsidies totaling RMB 17,216,000 in 2023, while dividends paid amounted to RMB (283,670,000)[16]. - The Group recognized government subsidies totaling RMB 17,216,000 in 2023, compared to RMB 504,000 in 2022, indicating increased support for business and technology development[83]. - Total other income for the Group increased to RMB 63,484,000 in 2023 from RMB 56,662,000 in 2022, marking an increase of approximately 12.9%[62]. Assets and Liabilities - Total assets as of December 31, 2023, were RMB 1,201,141,000, a decrease from RMB 1,767,477,000 in 2022, reflecting a decline of approximately 32.1%[103]. - The company has unsecured bank borrowings of RMB 80,000,000, with RMB 8,000,000 due within one year and RMB 72,000,000 due in the second year[95]. - The current portion of other payables rose to RMB 549,963,000 in 2023 from RMB 526,414,000 in 2022, representing an increase of approximately 4.5%[113]. - The total equity attributable to owners of the company as of December 31, 2023, was RMB 1,480,380,000, down from RMB 1,612,298,000 in 2022, indicating a decrease of about 8.2%[110]. Risk Management - The Group does not have significant exposure to foreign currency exchange rate risks as most transactions are settled in Renminbi[13]. - The Group's interest rate risk primarily arises from borrowings from banks and the Huinan County Finance Bureau[10]. - A 100 basis point increase or decrease in interest rates would result in a post-tax profit change of RMB 683,000 for the Group[11]. - The Group is not exposed to any equity price risk or commodity price risk[38]. Corporate Governance and Compliance - The company has confirmed that the information in the annual report is accurate and complete in all material respects[134]. - The company operates in a market that may experience higher volatility due to its focus on small and mid-sized companies[132]. - The company is listed on the GEM of the Stock Exchange of Hong Kong, which is designed for companies with higher investment risks[131]. Research and Development - The Company is strengthening new drug research and development, collaborating with domestic universities and research institutions, and has reported 22 consistency evaluation varieties[172]. - The Company has partnered with Mirable Pharmaceutical Technology to improve quality management and training for employees, aiming for high-quality product manufacturing[169]. - The R&D department completed the development of Hai Kun Shen Xi Jiao Nang in 2003, which has become the largest contributor to revenue[189]. - The Company is focusing on healthcare industrial projects to support sustainable development, leveraging unique geographical resources[170]. Employee Compensation - The total remuneration for executive directors in 2023 amounted to RMB 2,475,000, which includes salaries, allowances, and discretionary bonuses[147]. - The discretionary bonuses for executive directors were determined based on the Group's operating results and individual performance[148]. - Senior executives' remuneration for the year ended December 31, 2023, totaled RMB 313,000, with individual payments below RMB 1,000,000[197].

Financial Performance - The gross profit margin for the year ended December 31, 2023, was approximately 69.4%, representing a 7.6% decrease from 77% for the year ended December 31, 2022[16]. - Revenue for the year 2023 was RMB 841,545,000, a slight decrease of 0.05% compared to RMB 841,586,000 in 2022[165]. - Gross profit for 2023 was RMB 584,046,000, down from RMB 648,035,000 in 2022, reflecting a decrease of approximately 9.9%[165]. - Profit from operations increased to RMB 198,829,000 in 2023, compared to RMB 197,822,000 in 2022, showing a growth of 0.5%[165]. - Profit before tax for 2023 was RMB 198,314,000, up from RMB 197,345,000 in 2022, indicating an increase of 0.5%[165]. - Total comprehensive income for the year 2023 was RMB 148,207,000, a decrease of 23.4% from RMB 193,565,000 in 2022[165]. - Basic and diluted earnings per share for 2023 were 26.45 RMB cents, down from 34.55 RMB cents in 2022, representing a decline of approximately 23.5%[165]. - The company declared dividends of RMB 35,016,000 in 2022, which were not declared in 2023[170]. - The company’s retained profits as of December 31, 2023, were RMB 1,340,015,000, down from RMB 1,471,933,000 at the beginning of the year[170]. Income and Expenses - For the year ended December 31, 2023, the Group recorded other income and gains of approximately RMB64,092,000, compared to RMB59,736,000 for the year ended December 31, 2022[16]. - Distribution and selling costs decreased to approximately RMB341,938,000 for the year ended December 31, 2023, from approximately RMB404,851,000 in the previous year, accounting for 40.6% of revenue in 2023, a 7.4% decrease from 48% in the corresponding period of last year[16]. - Administrative expenses increased to approximately RMB107,371,000 from approximately RMB105,098,000 last year, representing a rise of about 2.16%[17]. - The company recognized government subsidies totaling RMB 17,216,000 in 2023, compared to RMB 504,000 in 2022, reflecting a substantial increase in support received[185]. Assets and Liabilities - As of December 31, 2023, cash and bank balances amounted to RMB352,137,000, up from RMB113,601,000 in 2022, indicating a significant increase of approximately 209.5%[17]. - Total liabilities increased to RMB838,444,000 in 2023 from RMB760,543,000 in 2022, reflecting a growth of about 10.2%[17]. - The ratio of total liabilities to total assets was 36% in 2023, compared to 32% in 2022, indicating a rise in leverage[17]. - The gearing ratio derived from total borrowings to total net assets was 5.43% in 2023, up from 0.02% in 2022, showing a substantial increase in financial leverage[17]. - The Group's total assets were RMB2,318,824,000 in 2023, down from RMB2,372,841,000 in 2022, representing a decrease of approximately 2.3%[17]. - The Group's shareholders' equity decreased to RMB1,480,380,000 in 2023 from RMB1,612,298,000 in 2022, a decline of about 8.2%[17]. - The Group's total borrowings were RMB80,400,000 in 2023, significantly reduced from RMB400,000 in 2022, indicating a decrease in debt reliance[17]. Corporate Governance - The Company has established adequate systems of internal controls and risk management procedures as part of its corporate governance[66]. - The Board is responsible for corporate strategy, annual and interim results, succession planning, risk management, and major acquisitions[66]. - The Company has appointed independent non-executive directors with appropriate experience to safeguard shareholder interests[54]. - The Audit Committee reviewed the Group's unaudited quarterly and interim results and annual audited results, confirming compliance with applicable accounting standards[65]. - The Company has prepared a Compliance Manual to ensure adherence to GEM Listing Rules and conducts regular training for directors and senior management[150]. - The Company has expressed satisfaction with its operational performance and confidence in future development prospects[153]. Research and Development - The Company invested approximately RMB31,294,000 in research and development projects during the year[13]. - The consistency evaluation of Edaravone Injection has been passed and entered into the seventh batch of national centralized procurement[11]. - The Company has reported 22 products for consistency evaluation, with four products, including Edaravone, having passed the evaluation[9]. - The Company has strengthened new drug research and development, collaborating with multiple domestic pharmaceutical universities and research institutions[9]. Employee and Operational Insights - The Group had a total of 848 employees as of the reporting date[17]. - The Company has optimized its quality management system and improved the business capabilities of managers across all departments[8]. - The Company has increased the production capacity and range of traditional Chinese medicine extraction workshops by adding new extraction equipment[14]. - The Company has focused on academic promotion and organized academic conferences related to nephrology to enhance market presence[5]. Cash Flow and Investments - Cash generated from operations increased to RMB 376,934,000 in 2023, up from RMB 241,755,000 in 2022, marking a growth of approximately 56.0%[185]. - Net cash generated from investing activities was RMB 109,043,000, a significant improvement from a net cash used of RMB (117,971,000) in 2022[186]. - The net cash used in financing activities was RMB (186,454,000), compared to RMB (27,714,000) in the previous year, indicating higher financing costs[186].

Financial Performance - For the nine months ended September 30, 2023, the company's revenue was RMB 592,839,000, a slight decrease from RMB 593,415,000 in the same period last year[13]. - Gross profit for the nine months ended September 30, 2023, was RMB 411,737,000, down from RMB 469,804,000 year-on-year, representing a decrease of approximately 12.3%[13]. - Operating profit increased to RMB 165,685,000 for the nine months ended September 30, 2023, compared to RMB 123,929,000 in the previous year, marking an increase of about 33.7%[13]. - Basic earnings per share for the nine months ended September 30, 2023, were RMB 23.79, compared to RMB 18.68 in the same period last year, reflecting an increase of approximately 27.5%[13]. - The company reported a net profit attributable to equity holders of RMB 133,295,000 for the nine months ended September 30, 2023, up from RMB 104,658,000 in the previous year, an increase of about 27.4%[13]. - The gross margin for the period was approximately 69.45%, a decrease of 9.72% from 79.17% in the previous year[41]. - The profit attributable to shareholders for the nine months ended September 30, 2023, was approximately RMB 133,295,000, an increase of 27.4% compared to RMB 104,658,000 for the same period in 2022[29]. Expenses and Cost Management - The company's selling expenses as a percentage of revenue decreased to 40.6% from 46.2% year-on-year, attributed to reduced advertising and promotional costs[5]. - Total administrative expenses decreased significantly from RMB 90,494,000 to RMB 48,546,000 year-on-year, a reduction of approximately 46.3%[5]. Taxation and Deferred Tax Assets - The effective income tax rate for the company was 15% for the period, in line with the applicable tax regulations in China[16]. - The company has no significant unrecognized deferred tax assets as of September 30, 2023, similar to the previous year[16]. Corporate Governance and Structure - The board consists of 6 executive directors and 3 independent non-executive directors, ensuring a diverse governance structure[62]. - The company has established an audit committee to oversee financial reporting and internal control systems, complying with GEM listing rules[58]. - There were no reported interests in competing businesses by directors or major shareholders during the review period[60]. - The company has adopted a code of conduct for securities trading that meets or exceeds GEM listing rules[60]. - The company has not fully complied with certain corporate governance rules as per GEM listing regulations[56]. - Independent directors can seek external auditor opinions and independent professional advice when necessary[61]. - The company aims to enhance board discussions and management communication through the role of an executive chairman[57]. Market Position and Product Development - The company has successfully passed the consistency evaluation for Idarubicin Injection and has entered the seventh batch of national centralized procurement[30]. - The management believes that Haikun Shenxi Capsules have matured in the market and have replaced the previous best-selling product, Fufang Huonaoshu Capsules[32]. - The company has increased production capacity with the official operation of its small-volume injection workshop[42]. - The company continues to enhance its R&D capabilities and market competitiveness through the expansion of its product catalog and workshop construction[43]. Shareholder Information - The company did not recommend any interim dividend for the nine months ended September 30, 2023, consistent with the previous year[16]. - As of September 30, 2023, Huinan County Caiyuan Investment holds 81,975,000 shares, representing 21.14% of the total registered capital and 14.63% of domestic shares[52]. - The company did not repurchase, sell, or redeem any of its listed shares during the nine-month period ending September 30, 2023[59]. - The chairman, Mr. Zhang Hong, is a major shareholder with extensive industry experience, contributing to the group's growth and profitability[57]. Financial Position - The company maintains a strong financial position, with cash and bank balances of approximately RMB 1,059,495,000 as of September 30, 2023[44]. - The group has no short-term bank borrowings as of September 30, 2023, resulting in a capital debt ratio of 0%[45].

Financial Performance - For the nine months ended September 30, 2023, the group recorded a revenue of approximately RMB 592,839,000, a slight decrease of 0.1% compared to RMB 593,415,000 for the same period in 2022[15] - The profit attributable to shareholders for the nine months ended September 30, 2023, was approximately RMB 133,295,000, representing an increase of 27.4% from RMB 104,658,000 in the same period of 2022[15] - The gross margin for the nine months ended September 30, 2023, was approximately 69.45%, a decrease of 9.72% compared to 79.17% in the previous year[15] - The gross profit for the nine months ended September 30, 2023, was RMB 411,737,000, down from RMB 469,804,000 in the same period of 2022, reflecting a decrease of approximately 12.3%[37] - The net profit for the three months ended September 30, 2023, was RMB 52,447,000, compared to RMB 27,403,000 for the same period in 2022, showing an increase of approximately 91.3%[37] Expenses and Cost Management - Selling expenses as a percentage of revenue for 2023 were 40.6%, down from 46.2% in the same period last year, attributed to reduced advertising and promotional costs[15] - General and administrative expenses decreased from RMB 90,494,000 to RMB 48,456,000 in the same period[15] - The administrative expenses for the nine months ended September 30, 2023, were RMB 165,685,000, compared to RMB 123,929,000 for the same period in 2022, representing an increase of approximately 33.7%[37] Financial Position - As of September 30, 2023, the group maintained a healthy financial position with cash and bank balances of approximately RMB 1,059,495,000 and a net asset value of approximately RMB 1,745,593,000[8] - The group has a capital-to-debt ratio of 0% as of September 30, 2023, with no short-term bank borrowings reported[27] Product Development and Market Position - The company has officially commenced production in its three small-volume injection workshops, increasing production capacity[7] - The consistency evaluation for Dapoxetine injection has passed, and the product has entered the seventh batch of national centralized procurement[7] - The company has registered and commercialized Eberaprost tablets, enhancing its product portfolio and market competitiveness[7] - The management believes that the Haikun Shenxi capsule has matured in the market and has replaced the Fufang Huolao Shujiao capsule as the group's best-selling product[28] Governance and Compliance - The company has established an audit committee to oversee financial reporting and internal control systems, in compliance with GEM listing rules[51] - The company has a strong governance structure, with independent non-executive directors forming the audit committee[63] - Chairman Zhang Hong also serves as the CEO, which the board believes benefits the company by providing deep business insights[50] - The board consists of 6 executive directors and 3 independent non-executive directors, ensuring a balanced governance structure[52] - The company has not reported any non-compliance with the trading rules for directors during the review period[62] Shareholder Information - The company reported a significant increase in user data, with a total of 101,937,000 shares held by Chairman Zhang Hong, representing 26.29% of the domestic shares[57] - The company holds a total of 29,520,000 H shares by shareholder Chen Jingwei, representing 17.11% of the H shares[61] - As of September 30, 2023, the company did not repurchase, sell, or redeem any of its listed shares during the nine-month period[65] Future Outlook - The company expressed gratitude to management and employees for their contributions and is committed to identifying potential business opportunities for future growth[56] - The company is focused on enhancing its growth and profitability capabilities in the coming years[56] - The board does not recommend the payment of an interim dividend for the nine months ended September 30, 2023[4] Market Focus - The group operates solely in the production and distribution of biochemical pharmaceuticals within China, with all revenue generated from domestic sales[22] - The group has not reported any significant business or geographical segment analysis due to its singular focus on the Chinese market[22] - The applicable income tax rate in China remains at 15% for both 2022 and 2023[25] - The group has maintained consistent accounting policies in preparing its financial statements for the nine months ended September 30, 2023, compared to the previous year[36]

| --- | --- | --- | |-------------------|--------------|----------------| | | 二零二三年 | 二零二二年 | | | 六月三十日 | 十二月三十一日 | | | （未經審核） | （經審核） | | | 人民幣千元 | 人民幣千元 | | | | | | 期初╱年初賬面淨值 | 296,088 | 198,594 | | 增添及撇銷及轉撥 | 22,477 | 129,379 | | 折舊及撇銷時撇除 | (32,675) | (31,885) | | | | | 49,116 49,116 10 二零二三年中期業績報告 | --- | --- | --- | |-------------|--------------|----------------| | | 二零二三年 | 二零二二年 | | | 六月三十日 | 十二月三十一日 | | | （未經審核） | （經審核） | | | 人民幣千元 | 人民幣千元 | | 即期 | 81,333 | 83,301 | | 31–90 日 | 69,415 | 71,156 | | 9 ...

Financial Performance - For the six months ended June 30, 2023, the total revenue was RMB 410.726 million, an increase of 5.1% compared to RMB 389.825 million for the same period in 2022[19]. - The pharmaceutical sales amounted to RMB 395.636 million, up from RMB 377.295 million, reflecting a growth of 4.0% year-over-year[19]. - The company's revenue for the six months ended June 30, 2023, was RMB 395,636 thousand, representing an increase of 4.4% compared to RMB 377,295 thousand for the same period in 2022[23]. - The net profit attributable to shareholders for the six months ended June 30, 2023, was RMB 80,848 thousand, up from RMB 77,255 thousand in 2022, marking an increase of 3.4%[23]. - Operating profit increased to RMB 107,137 thousand for the six months ended June 30, 2023, compared to RMB 92,043 thousand in 2022, reflecting a growth of 16.4%[23]. - Gross profit for the same period was RMB 266,027 thousand, down from RMB 297,844 thousand in 2022, indicating a decrease of 10.5%[23]. - The basic earnings per share for the six months ended June 30, 2023, was 14.43 cents, compared to 13.79 cents for the same period in 2022, representing a growth of 4.6%[23]. - The income tax expense for the six months ended June 30, 2023, was RMB 24,500,000, compared to RMB 14,152,000 for the same period in 2022, indicating a year-over-year increase of approximately 73.5%[59]. Assets and Liabilities - The net current assets totaled RMB 1,604.252 million as of June 30, 2023, slightly down from RMB 1,612.298 million at the end of 2022[14]. - The total non-current assets decreased to RMB 461.953 million from RMB 605.364 million, indicating a decline of 23.7%[11]. - The company reported a total asset value of RMB 1,646,000 thousand as of June 30, 2023, compared to RMB 1,646,000 thousand as of December 31, 2022, indicating stability in asset management[25]. - Cash and cash equivalents decreased to RMB 93,839 thousand as of June 30, 2023, from RMB 113,601 thousand as of December 31, 2022, a decline of 17.4%[25]. - The company's inventory as of June 30, 2023, was RMB 113,511,000, down from RMB 132,987,000 as of December 31, 2022[96]. - Trade receivables as of June 30, 2023, totaled RMB 275,832,000, a slight decrease from RMB 282,506,000 as of December 31, 2022[97]. - The company had no significant or contingent liabilities as of June 30, 2023[104]. - As of June 30, 2023, the company had zero short-term bank borrowings, maintaining a capital debt ratio of approximately 0%[105]. Operational Efficiency - The company continues to focus on enhancing its operational efficiency and exploring new market opportunities to drive future growth[23]. - Selling expenses as a percentage of revenue decreased to 36.96% for the six months ended June 30, 2023, down from 46.6% in the same period of 2022[80]. - General and administrative expenses decreased from RMB 42,275,000 for the six months ended June 30, 2022, to RMB 27,771,000 for the same period in 2023[80]. - The company maintained a stable financial position, with cash generated from operations being the primary source of funding as of June 30, 2023[81]. Corporate Governance - The company has not repurchased, sold, or redeemed any of its listed shares during the reporting period[6]. - The company has not disclosed any new product developments or market expansion strategies in the current report[10]. - There are no significant mergers or acquisitions reported during the period[10]. - The Audit Committee consists entirely of independent non-executive directors, ensuring compliance with GEM listing rules[122]. - The company has reviewed its accounting policies and internal controls, discussing financial reporting matters for the period ending June 30, 2023[124]. - The company has a total of 6 executive directors and 3 independent non-executive directors on its board[127]. Market Environment - The company continues to operate in a high-risk investment environment as indicated by its listing on the GEM market, which is characterized by higher volatility[21]. - The company aims to develop potential business opportunities to drive growth and achieve better performance in the future[107]. - The company has officially commenced production in its small capacity injection workshop, increasing production capacity[101]. - The consistency evaluation for the Yidalapeng injection has passed, and it has entered the seventh batch of national centralized procurement[101]. Employment - As of June 30, 2023, the group employed 928 staff members, a decrease from 956 staff members on June 30, 2022[115]. - The company has a major shareholder, Mr. Zhang Hong, holding 101,937,000 shares, representing 26.29% of the domestic shares and 18.19% of the total registered capital[117].