Financial Performance - The company's revenue for the first quarter of 2021 reached RMB 148,719,000, representing a 14.4% increase compared to RMB 129,952,000 in the same period of 2020[4] - Gross profit for the first quarter of 2021 was RMB 125,364,000, up from RMB 111,380,000 in the first quarter of 2020, indicating a growth of 12.6%[4] - Operating profit increased to RMB 23,725,000 in Q1 2021, compared to RMB 16,964,000 in Q1 2020, reflecting a growth of 39.5%[4] - Profit attributable to shareholders for the first quarter of 2021 was RMB 20,108,000, a significant increase of 45.3% from RMB 13,870,000 in the same quarter of 2020[4] - Basic earnings per share for Q1 2021 were RMB 3.59 cents, compared to RMB 2.47 cents in Q1 2020, marking a 45.2% increase[4] - The profit attributable to shareholders for the same period was RMB 20,108,000, representing a 45% increase from RMB 13,870,000 in the previous year[16] - The basic earnings per share for the three months ended March 31, 2021, was RMB 3.59 cents[16] Revenue Sources - All revenue generated in the first quarter of 2021 was from domestic sales within China, with no identifiable assets located outside the country[8] - For the three months ended March 31, 2021, the group recorded revenue of approximately RMB 148,719,000, an increase of approximately RMB 18,767,000 compared to the same period last year[16] Cost and Margin Analysis - The gross margin for the same period was approximately 84.3%, a decrease of 1.4% from 85.7% in the previous year[16] - Distribution and selling costs as a percentage of revenue decreased to 46.2% from 78% in the previous year, a reduction of 31.8%[16] Cash and Assets - As of March 31, 2021, the group's cash and bank balances totaled RMB 818,180,000, compared to RMB 131,450,000 in the previous year[19] - The group's net asset value as of March 31, 2021, was approximately RMB 1,365,590,000, an increase from RMB 1,252,403,000 in the previous year[19] - The capital debt ratio as of March 31, 2021, was 0.03%, down from 0.2% in the previous year[20] Business Operations - The company has not reported any changes in its main business operations, which focus on the manufacturing and distribution of traditional Chinese medicine and pharmaceutical products in China[5] - The company upgraded production facilities and purchased new equipment to enhance production capacity and meet market demand[18] - The company plans to develop and produce 16 new varieties of generic drugs in newly constructed production workshops[18] Dividends and Shareholder Information - The board of directors proposed a special dividend of RMB 3.5 cents per share for the previous fiscal year, totaling RMB 19,608,750, which is the same as the previous year[12] - The company did not purchase, sell, or redeem any of its listed shares during the three months ended March 31, 2021[45] Governance - The audit committee is composed solely of independent non-executive directors, ensuring accountability and independent decision-making[43] - The company’s chairman and CEO, Zhang Hong, is also the major shareholder, contributing to the group's growth and profitability[42]

Financial Performance - The total revenue for the year ended December 31, 2020, was approximately RMB 622,250,000, representing a decrease of 3.7% compared to RMB 645,885,000 in the previous year[16]. - Profit attributable to owners of the Company decreased to RMB 126,558,000 from RMB 144,726,000 last year[16]. - Basic earnings per share decreased to RMB 22.59 cents from RMB 25.83 cents last year[16]. - For the year ended December 31, 2020, the Group's revenue decreased to RMB 622,250,000 from approximately RMB 645,885,000, representing a decline of about 3.6%[38]. - Profit for the year attributable to owners of the Company decreased to RMB 126,558,000 from RMB 144,726,000, a decrease of approximately 12.6%[38]. - Basic earnings per share decreased to RMB 22.59 cents from RMB 25.83 cents, reflecting a decline of about 12.5%[38]. - The audited profit attributable to owners of the Company was approximately RMB 126,558,000, representing a decrease of 12.55% from RMB 144,726,000 in the previous year[99]. - Profit before income tax for 2020 was RMB 150,041,000, down from RMB 175,294,000 in 2019, reflecting a decline of 14.4%[173]. Operational Challenges - The COVID-19 outbreak significantly impacted the global economy, but the Company resumed work and production promptly to minimize the impact on production and sales[18]. - The Company faced increased production costs due to stricter environmental and resource constraints, as well as declining overall drug prices following the implementation of drug price control policies[19]. - The Company faced considerable operational pressure due to rising production costs and declining overall price levels of pharmaceutical products[37]. Strategic Initiatives - The Group emphasized the research and development of new drugs, increasing investment in technologically advanced new drugs with independent intellectual property rights[23]. - The Group's strategy includes exploring and adjusting business strategies and increasing investment in technology to pursue sustainable development[26]. - The Company plans to develop 16 new varieties of generic drugs through newly built workshops for research and production[98]. - The Group aims to achieve rapid growth and become a centennial enterprise by focusing on technological innovation and serving global health needs[33]. Financial Management - The expected annualized rate of return for wealth management products subscribed during the year was around 1.58%–3.8%, which was higher than comparable market bank deposit interest rates[40]. - As of December 31, 2020, the Group held Wealth Management Products totaling approximately RMB 60,417,000, a decrease from RMB 683,483,000 in 2019[91]. - The expected annualized return rate for the subscribed Wealth Management Products ranged from 1.20% to 3.80%[91]. - The unrealized gains on fair value change from the Wealth Management Products amounted to approximately RMB 417,000 as of December 31, 2020[92]. - The Group's investment in time deposits as of December 31, 2020, amounted to approximately RMB 805,020,000, compared to RMB Nil in 2019[91]. - The management has shifted investment strategy towards time deposits due to decreasing expected returns on Wealth Management Products[94]. - The Group established a Risk Management Committee to enhance the assessment and management of investments in Wealth Management Products and time deposits[94]. - The subscriptions of Wealth Management Products were aimed at maximizing the utilization of surplus cash while maintaining high liquidity and low risk[94]. - The Group did not experience any losses on the Wealth Management Products as of December 31, 2020[94]. - The Group will continue to seek opportunities to invest idle cash in appropriate Wealth Management Products[94]. Asset and Liability Management - Total assets increased to RMB 1,804,503,000 from RMB 1,671,477,000 in 2019[110]. - The total liabilities to total assets ratio was 25% in 2020, slightly down from 26% in 2019, with total liabilities amounting to RMB 459,021,000[114]. - The Group's gearing ratio was 0.02% in 2020, compared to 0.2% in 2019, indicating a significant reduction in leverage[114]. - The Group's total equity rose to RMB 1,345,482,000 in 2020, up from RMB 1,238,533,000 in 2019, marking an increase of about 8.6%[112]. - The total borrowings of the Group were RMB 400,000 as of December 31, 2020, significantly reduced from RMB 2,350,000 in 2019[112]. - The Group's current liabilities amounted to RMB 415,435,000 in 2020, compared to RMB 387,872,000 in 2019, indicating an increase of approximately 7.4%[112]. Employee and Community Engagement - The Group employed a total of 951 employees, with remuneration based on market conditions and individual performance[115]. - The Group has maintained compliance with all relevant laws and regulations, emphasizing its commitment to environmental and social standards[116]. - The Group encourages participation in environmental and social activities among employees, customers, and suppliers to benefit the community[116]. Future Outlook - The company has outlined a positive outlook for 2021, projecting a revenue growth of 10% to 12% based on current market trends and product demand[141]. - New product development includes the launch of two innovative drug formulations, which are expected to contribute an additional 200 million CNY in revenue in the upcoming fiscal year[141]. - The company is expanding its market presence, targeting an increase in distribution channels by 25% in 2021 to enhance accessibility of its products[141]. - A strategic acquisition of a smaller biotech firm is planned, which is anticipated to enhance the company's R&D capabilities and product pipeline[141]. - The company has invested 50 million CNY in new technology for production efficiency, aiming to reduce costs by 15% over the next two years[141]. - The R&D department has successfully filed for three new patents in 2020, focusing on advanced extraction methods that could improve product efficacy[141]. - The company has established a partnership with a leading university to foster innovation in drug development, which is expected to yield new products within the next 18 months[141]. - The management team has emphasized a commitment to sustainability, with plans to reduce carbon emissions by 30% by 2025 through improved operational practices[141].

Financial Performance - For the nine months ended September 30, 2020, the company's revenue was RMB 440,471,000, a decrease of 6.7% compared to RMB 472,058,000 for the same period in 2019[5] - Gross profit for the nine months ended September 30, 2020, was RMB 374,377,000, down 5.5% from RMB 396,184,000 in the same period of 2019[5] - Operating profit for the nine months ended September 30, 2020, was RMB 98,689,000, a decrease of 4.3% compared to RMB 103,756,000 for the same period in 2019[5] - Profit attributable to equity holders for the nine months ended September 30, 2020, was RMB 83,027,000, down 5.4% from RMB 88,107,000 in the same period in 2019[5] - Basic earnings per share for the nine months ended September 30, 2020, was 14.8 cents, compared to 15.7 cents for the same period in 2019[5] - The net profit attributable to shareholders for the nine months ended September 30, 2020, was approximately RMB 83,027,000, down 5.76% from RMB 88,107,000 in the same period of 2019[14] Expenses and Financial Position - The company’s operating expenses for the nine months ended September 30, 2020, were RMB 101,222,000, compared to RMB 32,492,000 for the same period in 2019[5] - The company’s financial expenses for the nine months ended September 30, 2020, were RMB 707,000, compared to RMB 92,000 for the same period in 2019[5] - The company’s tax expense for the nine months ended September 30, 2020, was RMB 14,955,000, compared to RMB 15,557,000 for the same period in 2019[9] - General and administrative expenses increased from RMB 32,492,000 to RMB 101,222,000 in 2020[15] - As of September 30, 2020, the group maintained a strong financial position with cash and bank balances of approximately RMB 808,597,000 and a net asset value of approximately RMB 1,321,560,000[18] - The group had a capital-to-debt ratio of 0% as of September 30, 2020, with no short-term bank borrowings[19] Dividends and Shareholder Actions - The company did not recommend the payment of an interim dividend for the nine months ended September 30, 2020[11] - No repurchase, sale, or redemption of the company's listed shares occurred during the nine-month period ending September 30, 2020[37] Market Position and Strategy - The company has upgraded production facilities to enhance capacity and meet market demand, including the establishment of a new solid dosage drug workshop[16] - The management believes that the Haikun Shenxi capsule has matured in the market and has replaced the compound Huoluan Shushu capsule as the group's best-selling product[20] - The group is committed to identifying potential business opportunities to create substantial results in the coming years[20] - Selling expenses as a percentage of revenue decreased to 45.8% in 2020 from 60.8% in the previous year, attributed to reduced advertising and promotional costs[15] - The gross margin for the nine months ended September 30, 2020, was approximately 85%, an increase of 1.1% from 83.9% in the previous year[15] Corporate Governance - The company has adopted a code of conduct for directors' securities trading, which is strictly in line with GEM Listing Rules, with no known violations reported[32] - The company did not fully comply with GEM Listing Rules regarding corporate governance practices during the review period, particularly concerning the roles of the Chairman and CEO being held by the same individual[34] - The Audit Committee, established on May 24, 2001, is responsible for reviewing and supervising the financial reporting process and internal control systems of the group[35]

Financial Performance - The company reported a revenue of RMB 285,644,000 for the six months ended June 30, 2020, a decrease of 4.2% compared to RMB 299,404,000 for the same period in 2019[5]. - Gross profit for the six months ended June 30, 2020, was RMB 243,274,000, down from RMB 248,926,000 in 2019, reflecting a gross margin of approximately 85.2%[5]. - The net profit attributable to shareholders for the six months ended June 30, 2020, was RMB 51,686,000, compared to RMB 53,473,000 in the same period of 2019, representing a decline of 3.3%[5]. - For the six months ended June 30, 2020, the total revenue was RMB 307,735,000, a decrease of 3.4% compared to RMB 320,411,000 for the same period in 2019[21]. - The pharmaceutical sales amounted to RMB 285,644,000 for the six months ended June 30, 2020, down from RMB 299,404,000 in the previous year, representing a decline of 4.8%[21]. - The basic earnings per share for the six months ended June 30, 2020, were RMB 51,686,000, compared to RMB 53,473,000 for the same period in 2019, reflecting a decrease of 3.3%[28]. - The operating profit for the six months ended June 30, 2020, was not explicitly stated but is derived from the revenue figures and expenses reported[28]. - The company reported other income of RMB 22,091,000 for the six months ended June 30, 2020, compared to RMB 21,007,000 in the same period of 2019, showing a slight increase of 5.2%[5]. - The company’s operating expenses decreased to RMB 126,178,000 for the six months ended June 30, 2020, from RMB 182,650,000 in 2019, indicating a reduction of 30.9%[5]. - The company’s financial expenses for the six months ended June 30, 2020, were RMB 61,844,000, slightly down from RMB 62,985,000 in the previous year[5]. Assets and Liabilities - The company’s total assets as of June 30, 2020, amounted to RMB 1,419,857,000, an increase from RMB 1,398,922,000 as of December 31, 2019[10]. - Current liabilities totaled RMB 1,334,647,000 as of June 30, 2020, compared to RMB 1,283,605,000 at the end of 2019, indicating an increase in short-term obligations[10]. - The company’s equity increased to RMB 1,290,219,000 as of June 30, 2020, from RMB 1,238,533,000 as of December 31, 2019, reflecting a growth of 4.2%[12]. - The total assets related to property, plant, and equipment increased to RMB 147,617,000 as of June 30, 2020, from RMB 145,242,000 at the end of 2019[32]. - Inventory as of June 30, 2020, was RMB 48,020,000, down from RMB 51,239,000 as of December 31, 2019[41]. - Trade receivables as of June 30, 2020, totaled RMB 247,670,000, a decrease from RMB 260,154,000 as of December 31, 2019[43]. Shareholder Information - As of June 30, 2020, Mr. Zhang Hong holds 101,937,000 shares, representing 26.29% of domestic shares and 18.19% of total registered capital[58]. - Mr. Zhang Xiaoguang owns 42,315,000 shares, accounting for 10.91% of domestic shares and 7.55% of total registered capital[58]. - Huinan County Financial Investment Co., Ltd. holds 81,975,000 shares, which is 21.14% of domestic shares and 14.63% of total registered capital[62]. - Mr. Chen Jingwei owns 29,520,000 H shares, representing 17.11% of total registered capital[64]. Corporate Governance - The company has adopted a code of conduct for securities trading that meets or exceeds the standards set by GEM Listing Rules[65]. - The audit committee consists of three independent non-executive directors, ensuring oversight of financial procedures and internal controls[67]. - The company has not established any arrangements for directors to acquire rights through the purchase of shares or bonds[59]. - The chairman and CEO roles are held by Mr. Zhang Hong, which the board believes does not affect accountability or independent decision-making[66]. Employee Information - The company had 856 employees as of June 30, 2020, a decrease from 870 employees on June 30, 2019[70]. Dividends and Reinvestment - The company has not declared any dividends for the current period, maintaining a focus on reinvestment[5]. - The company did not recommend any interim dividend for the six months ended June 30, 2020, consistent with the previous year[31]. Operational Focus - The company’s operations are solely focused on the production and distribution of traditional Chinese medicine and pharmaceutical products within China[21]. - The company upgraded production facilities, enhancing capacity to meet market demand, and completed the construction and commissioning of a new solid dosage drug workshop[50]. - The company is focused on developing potential business opportunities to drive growth and achieve better results in the future[57].

Financial Performance - The total revenue for the year ended December 31, 2019, was RMB 645,885,000, a decrease of 0.3% compared to RMB 647,672,000 in the previous year[16]. - Profit attributable to owners of the Company decreased to RMB 144,726,000 from RMB 161,216,000 in the previous year[16]. - Basic earnings per share decreased to RMB 25.83 cents from RMB 28.78 cents in the previous year[16]. - For the year ended December 31, 2019, the Group's total revenue decreased to RMB 645,885,000 from RMB 647,672,000, representing a decline of 0.3%[34]. - Profit attributable to owners of the Company decreased to RMB 144,726,000 from RMB 161,216,000, marking a reduction of approximately 10.2%[34]. - Basic earnings per share decreased to RMB 25.83 cents from RMB 28.78 cents, reflecting a decline of about 10.3%[34]. - The Group's recorded revenue for the year ended December 31, 2019, was approximately RMB 645,885,000, a decrease of approximately 0.3% compared to RMB 647,672,000 in 2018[47]. - Profit before income tax for 2019 was RMB 175,294,000, down from RMB 186,323,000 in 2018, reflecting a decrease of approximately 5.53%[101]. - Profit attributable to owners of the Company for the year was RMB 144,726,000, compared to RMB 161,216,000 in 2018, indicating a decline of about 10.19%[101]. Investment and R&D - The Company increased investment in technology and intensified product research and development to capture the market with leading technology and high-end products[17]. - The Company emphasized the research and development of new drugs, increasing investment in technologically advanced new drugs with independent intellectual property rights[23]. - The Group invested approximately RMB 41,752,000 in research and development projects during the year[44]. - A new solid medicine workshop was built for research and development of generic drugs, enhancing the Company's product mix and market competitiveness[46]. - The R&D team has filed for three new patents related to drug formulation, which could potentially open new revenue streams[78]. Market Strategy and Challenges - The Company faced challenges such as increasing production costs, dropping drug prices, and rising costs of certain raw materials but achieved its project goals for the year[18]. - The Company aims to pursue sustainable development by exploring and adjusting its business strategy under new historical conditions[17]. - The Company is committed to overcoming market challenges and achieving further success in the coming years[18]. - The Company plans to continue exploring uncharted markets and strengthening academic promotion to maintain its competitive edge[22]. - The Company is expanding its market presence, targeting an increase in distribution channels by 30% in the next year[78]. - A strategic acquisition of a smaller biotech firm was completed, which is anticipated to enhance the company's R&D capabilities and add $10 million in annual revenue[78]. Financial Management - As of December 31, 2019, the Group's investments in Wealth Management Products amounted to approximately RMB683,483,000, an increase from RMB571,612,000 in 2018[39]. - The gain realized from Wealth Management Products for the year ended December 31, 2019, was approximately RMB11,428,000, down from RMB16,994,000 in 2018, representing a decrease of about 32.5%[39]. - The Group's subscriptions to Wealth Management Products were aimed at maximizing surplus cash utilization while maintaining high liquidity and low risk[39]. - The Group did not experience any losses on the Wealth Management Products as of December 31, 2019, indicating effective treasury management[39]. - The company maintained cash and bank balances of RMB 137,389,000 as of December 31, 2019, down from RMB 158,340,000 in 2018[62]. Corporate Governance - The Company has adopted corporate governance practices, detailed in the annual report[139]. - The Company has complied with the Corporate Governance Code as set out in Appendix 15 of the GEM Listing Rules throughout the year ended 31 December 2019[141]. - The Audit Committee reviewed the financial reporting procedures and internal control system, including the audited results for the year ended December 31, 2019[137]. - The Company has implemented adequate systems of internal controls and risk management procedures[143]. - The Board meets at least four times a year to discuss business development, operation, and financial performance[145]. Employee Welfare and Social Responsibility - The Group offers competitive remuneration and welfare to employees, enhancing their career development through training[189]. - The Group strictly complies with social insurance regulations, making timely contributions for all staff[191]. - The Group has established a comprehensive management system for occupational health and safety[192]. - The company has actively fulfilled its social responsibilities while balancing development and environmental protection[187]. - A safe and comfortable working environment is prioritized, with reasonable remuneration and various benefits provided to employees[198]. Environmental Impact - The Group advocates green production, achieving energy saving and resource optimization through various measures[187]. - The Group's electricity consumption for the year ended December 31, 2019, was 4,236,000 kWh, coal consumption was 11,556 tonnes, and water consumption was 99,976 tonnes[187]. - The Group has not experienced any significant safety accidents during operations as of December 31, 2019[193].

Financial Performance - The company's revenue for the first quarter of 2020 was RMB 129,952,000, a decrease of 7.2% compared to RMB 140,961,000 in the same period of 2019[4] - Gross profit for the first quarter of 2020 was RMB 111,380,000, down from RMB 118,397,000 in the first quarter of 2019, reflecting a decline of 5.7%[4] - Operating profit for the first quarter of 2020 was RMB 16,964,000, compared to RMB 18,059,000 in the first quarter of 2019, representing a decrease of 6.0%[4] - Profit attributable to shareholders for the first quarter of 2020 was RMB 13,870,000, down 9.1% from RMB 15,261,000 in the same period of 2019[4] - Basic earnings per share for the first quarter of 2020 were 2.47 cents, a decrease from 2.7 cents in the first quarter of 2019[4] - The profit attributable to shareholders for the same period was RMB 13,870,000, down 9% from RMB 15,261,000 in 2019[16] Other Income and Expenses - The company reported other income of RMB 17,182,000, significantly higher than RMB 7,394,000 in the first quarter of 2019, marking an increase of 132.5%[4] - The company’s financial expenses increased to RMB 653,000 in the first quarter of 2020 from RMB 33,000 in the same period of 2019[4] - The effective tax rate for the company remained at 15% for both the first quarter of 2020 and 2019[9] Dividends - The company did not recommend the payment of an interim dividend for the first quarter of 2020, compared to no dividend in the same period of 2019[12] - The total amount of proposed special dividend for the previous financial year is RMB 19,608,750, down from RMB 39,217,500 in 2019[12] Financial Position - The company maintained a strong financial position with cash and bank balances totaling RMB 131,450,000 as of March 31, 2020, down from RMB 150,467,000 in 2019[19] - The net asset value of the group was approximately RMB 1,197,129,000 as of March 31, 2020, compared to RMB 1,148,286,000 in 2019[19] - The company's capital debt ratio was 0.2% as of March 31, 2020, unchanged from the previous year[20] Cost and Production - Distribution and selling costs as a percentage of revenue increased to 78% from 67.4% year-on-year, a rise of 10.6%[16] - The gross margin for the three months ending March 31, 2020, was approximately 85.7%, an increase of 1.7% from 84% in the same period of 2019[16] - The board believes that production and material costs have not experienced significant fluctuations during the reporting period[16] - The company upgraded its production facilities, enhancing capacity to meet market demand, including the construction of a new solid dosage drug workshop[18] - The company is actively developing new products, with the research on Irbesartan tablets completed[18] Corporate Governance - The audit committee was established on May 24, 2001, to review and supervise the financial reporting procedures and internal control systems of the group[43] - The board believes that having an executive chairman is in the best interest of the group, as it facilitates open communication between the board and management[42] Share Activity - The company has not purchased, sold, or redeemed any of its listed shares during the three months ending March 31, 2020[45]

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） 第三季度業績報告2019 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為相比起其他在本交易所上市的公司帶有較高投資風險的公司提供一 個上市的市場。有意投資的人士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。GEM的較高風險及其它特色表示GEM較適合專業及其他 老練投資者。 由於GEM上市公司新興的性質所然，在GEM買賣的證券可能會較於主板買賣之證券承 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報告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不會就因本報告全部或部份 內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 本報告（吉林省輝南長龍生化藥業股份有限公司的董事（「董事」）願共同及個別對此負全 責）乃 遵 照GEM證 券 上 ...

Financial Performance - Revenue for the six months ended June 30, 2019, was RMB 299,404,000, a decrease of 4.3% compared to RMB 312,070,000 for the same period in 2018[5] - Gross profit for the same period was RMB 248,926,000, down 2.9% from RMB 256,522,000 in 2018[5] - Operating profit for the six months was RMB 62,985,000, a decrease of 3.9% compared to RMB 65,490,000 in 2018[5] - Profit attributable to shareholders for the six months was RMB 53,473,000, down 3.8% from RMB 55,522,000 in 2018[5] - Basic earnings per share for the six months was 9.54 cents, compared to 9.91 cents in 2018[5] - For the six months ended June 30, 2019, the total revenue was RMB 320,411,000, a decrease of 2.3% compared to RMB 328,453,000 for the same period in 2018[18] - The net profit for the six months ended June 30, 2019, was RMB 53,472,000, compared to RMB 55,522,000 for the same period in 2018, reflecting a decrease of 3.8%[23] - The basic earnings per share for the six months ended June 30, 2019, was RMB 0.095, compared to RMB 0.099 for the same period in 2018[23] Cash Flow and Assets - Cash inflow from operating activities was RMB 47,214,000, a significant improvement from a cash outflow of RMB 40,675,000 in 2018[8] - Total assets as of June 30, 2019, were RMB 1,575,295,000, compared to RMB 1,554,861,000 as of December 31, 2018[7] - Total liabilities as of June 30, 2019, were RMB 388,798,000, compared to RMB 421,836,000 as of December 31, 2018[7] - Net cash and cash equivalents at the end of the period were RMB 148,617,000, down from RMB 159,026,000 at the beginning of the period[8] - As of June 30, 2019, the company had cash and bank balances of approximately RMB 148,617,000, with a total net asset value of approximately RMB 1,186,497,000[47] - The company’s non-current assets at the end of June 30, 2019, were RMB 15,068,000, unchanged from the previous year[31] - The company’s trade receivables as of June 30, 2019, totaled RMB 276,343,000, compared to RMB 249,326,000 as of December 31, 2018[39] Expenses and Taxation - The operating profit for the six months ended June 30, 2019, included depreciation of RMB 10,638,000, down from RMB 16,716,000 in the same period of 2018[20] - The income tax expense for the six months ended June 30, 2019, was RMB 9,449,000, slightly lower than RMB 9,875,000 for the same period in 2018[20] - Selling expenses accounted for 61% of revenue for the six months ended June 30, 2019, a decrease from 62.3% in the same period of 2018[44] - General and administrative expenses increased from RMB 12,809,000 for the six months ended June 30, 2018, to RMB 24,798,000 for the same period in 2019[44] - The applicable income tax rate remained at 15% for both 2019 and 2018[20] Dividends and Shareholder Information - The company did not declare any dividends for the current period, consistent with the previous year[5] - The company did not recommend any interim dividend for the six months ended June 30, 2019, consistent with the previous year[24] - The major shareholder, Mr. Zhang Hong, holds 101,937,000 shares, representing 26.29% of domestic shares and 18.19% of total registered capital[54] - The company has not repurchased, sold, or redeemed any of its listed shares during the six-month period ending June 30, 2019[67] Corporate Governance and Future Outlook - The company has established an audit committee composed of three independent non-executive directors to oversee financial procedures and internal controls[63] - The company will continue to explore potential business opportunities to drive growth and achieve better results in the future[52] - The company has adopted a code of conduct for securities trading that meets or exceeds the standards set by GEM listing rules[61] - The board of directors includes 6 executive directors and 3 independent non-executive directors[68] - The mid-year performance report will be published on the GEM website for seven consecutive days starting from the publication date[69] - The report is dated August 14, 2019, indicating a mid-year performance review[70] Business Operations - The company operates solely in the production and distribution of traditional Chinese medicine and pharmaceutical products within China[20] - The company has invested in research and development in the food and health sectors to enhance its pharmaceutical research capabilities[45] - The company completed the construction and commissioning of equipment for its wholly-owned subsidiary, Jilin Changlong Food and Beverage Co., Ltd., and launched the product "Changbai Mountain Wild Walnut Milk"[45] - The company employed 870 employees as of June 30, 2019, an increase from 520 employees on June 30, 2018[66] - The company has not recognized any significant deferred tax assets for the periods ended June 30, 2019, and 2018[21]

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） 第一季度業績報告2019 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM的定位，乃為相比起其他在本交易所上市的公司帶有較高投資風險的公司提供一 個上市的市場。有意投資的人士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。GEM的較高風險及其他特色表示GEM較適合專業及其他 老練投資者。 由於GEM上市公司新興的性質使然，在GEM買賣的證券可能會較於主板買賣之證券承 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聯交所對本報告之內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示概不會就本報告全部或任何部分內容而產生或因 倚賴該等內容而引致之任何損失承擔任何責任。 本報告乃遵照GEM證券上市規則提供有關吉林省輝南長龍生化藥業股份有限公司及其 附 屬 公 司（「本 集 團」）之 資 料，吉 ...

Financial Performance - The total revenue for the year ended December 31, 2018, was RMB 647,672,000, representing an increase of 0.4% compared to RMB 645,303,000 in the previous year[19]. - Profit attributable to owners of the Company increased to RMB 161,216,000 from RMB 144,402,000 last year[19]. - Basic earnings per share rose to RMB 28.78 cents from RMB 25.77 cents in the previous year[19]. - The profit attributable to equity holders increased from RMB 144,402,000 to RMB 161,216,000, reflecting a growth of approximately 11.8%[22]. - Basic earnings per share rose from RMB 25.77 to RMB 28.78, marking an increase of about 7.8%[22]. - For the year ended 31 December 2018, the Group's revenue increased to approximately RMB 647,672,000, representing a growth of about 0.4% compared to RMB 645,303,000 in 2017[30]. - The profit attributable to owners of the Company for the year was approximately RMB 161,216,000, an increase of 11.6% from RMB 144,402,000 in the previous year[31]. - Basic earnings per share rose to RMB 28.78 cents, up from RMB 25.77 cents, reflecting an increase of RMB 3.01 cents[31]. - The gross profit margin for the year ended December 31, 2018, was approximately 82.2%, a decrease of 0.1% from 82.3% in 2017[33]. - Other income and gains for the year ended December 31, 2018, were approximately RMB 58,188,000, compared to RMB 24,008,000 in 2017[33]. - Distribution and selling costs increased to approximately RMB 375,480,000 in 2018, accounting for 57.97% of revenue, up from 51.93% in the previous year, representing a 6.04% increase[33]. - Administrative expenses decreased to approximately RMB 28,450,000 in 2018 from RMB 47,165,000 in 2017[33]. - The financial performance for 2018 indicates a stable growth trajectory, with detailed figures available in the annual report[57]. Product Development and Innovation - The company focused on the sales growth of its leading product, Hai Kun Shen Xi capsule, and expanded sales of its branded product, Compound Huonaoshu capsule[21]. - The company emphasized research and development of new drugs, collaborating with pharmaceutical universities and research institutes to enhance technological advancements[26]. - The R&D department successfully developed the Hai Kun Shen Xi capsule, which has become the largest contributor to revenue[31]. - The Group launched a new product, Changbai Mountain wild walnuts milk, through its wholly-owned subsidiary, enhancing its product offerings[31]. - The company has been involved in the research and development of new medicines, including Infantile spleen-strengthening oral solution and Ginseng Glycopeptide Injection[52]. - The company has achieved a leading international level in research studies related to ginseng polysaccharide[52]. - The company is committed to expanding its market presence and enhancing its product offerings through ongoing research and development efforts[52]. - Jilin Province Huinan Changlong Bio-pharmacy Company Limited reported significant advancements in drug development, with three new drugs successfully developed, including pediatric health tonic and ginseng peptide injection[54]. - The company has revised and improved nearly 100 drug standards, which have been successfully transformed in local enterprises[54]. - The company holds five invention patents, showcasing its commitment to innovation in the pharmaceutical sector[54]. - The company has a strong focus on innovation, as evidenced by the patents and awards received by its team members[44][52]. Corporate Governance and Management - The Board of Directors expressed satisfaction with the financial performance, attributing profitability to strong sales and distribution efforts[31]. - The Audit Committee was established on May 24, 2001, to oversee financial reporting and internal control systems[104]. - The Company has complied with the Corporate Governance Code as set out in Appendix 15 of the GEM Listing Rules throughout the year ended December 31, 2018[109]. - The Board comprises nine Directors, with six Executive Directors and three Independent Non-Executive Directors (INEDs) as of the report date[112]. - The Audit Committee is composed exclusively of Independent Non-Executive Directors, ensuring independent oversight[121]. - The Company has implemented adequate systems of internal controls and risk management procedures as part of its corporate governance practices[112]. - The Company has provided continuous professional development for Directors to keep them updated on statutory and regulatory changes[129]. - The Remuneration Committee is responsible for determining specific remuneration packages for all Executive Directors, considering factors like comparable salaries and performance-based remuneration[136]. - The Nomination Committee evaluates potential candidates based on professional expertise, relevant experience, and personal integrity[147]. - The Company ensures that all Directors receive tailored induction and ongoing updates to facilitate their responsibilities under GEM Listing Rules[128]. Environmental and Social Responsibility - The Company is committed to energy saving, consumption reduction, and minimizing environmental impact through various initiatives[180]. - The Group has complied with the "comply or explain" provisions of the Environmental, Social and Governance Reporting Guide[179]. - The Company has established a comprehensive management system for occupational health and safety, with no significant safety incidents reported as of December 31, 2018[187]. - The Group actively fulfills its social responsibilities while balancing development and environmental protection[180]. - The Company has implemented a recycling system to reduce water resource usage during production[181]. - The Group emphasizes the importance of product compliance and conducts self-inspections to manage quality and safety risks[193]. - The Group actively engages with local communities to contribute to their development and encourages staff to volunteer their time and skills[196]. Financial Position and Assets - As of December 31, 2018, the Group's total assets were RMB 1,554,841,000, an increase from RMB 1,238,072,000 in 2017[33]. - The ratio of total liabilities to total assets was 27% in 2018, up from 18% in 2017, with total liabilities amounting to RMB 421,816,000[36]. - The Group had a gearing ratio of 0.2% as of December 31, 2018, compared to 0.3% in 2017[36]. - The Group maintained cash and bank balances of RMB 158,340,000 as of December 31, 2018, compared to RMB 110,428,000 in 2017[36]. - Total assets as of December 31, 2018, amounted to RMB 1,554,841,000, a significant increase from RMB 1,238,072,000 in 2017, representing a growth of about 25.5%[63]. - Total liabilities increased to RMB 421,816,000 in 2018 from RMB 227,045,000 in 2017, marking an increase of approximately 85.7%[63]. - Net assets rose to RMB 1,133,025,000 in 2018, compared to RMB 1,011,027,000 in 2017, indicating a growth of about 12.0%[63]. Compliance and Risk Management - The Group's operations comply with local and national anti-corruption legislation, including the Prevention of Bribery Ordinance in Hong Kong[196]. - Employees are required to adhere to a code of business ethics, prohibiting any corrupt or bribery behavior as per employment contracts[196]. - The Group is committed to identifying, monitoring, and managing risks associated with its business activities through an effective control system[160]. - The internal control system of the Group is reviewed continuously by the Board, which is satisfied that the current internal controls are satisfactory[160].