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].

Financial Performance - For the three months ended March 31, 2023, the company recorded revenue of approximately RMB 142,544,000, a decrease of about RMB 50,823,000 compared to the same period last year[14]. - The profit attributable to shareholders for the same period was RMB 52,388,000, an increase of 56% from RMB 33,615,000 in the previous year[14]. - The basic earnings per share for the three months ended March 31, 2023, was RMB 0.0935, compared to RMB 0.0660 for the same period in 2022[30]. - Revenue for the first quarter of 2023 was RMB 142,544,000, a decrease of 26.3% compared to RMB 193,367,000 in the same period of 2022[61]. - Gross profit for the first quarter of 2023 was RMB 100,789,000, down 37.8% from RMB 161,864,000 year-over-year[61]. - Operating profit increased to RMB 67,224,000, compared to RMB 39,863,000 in the first quarter of 2022, representing a growth of 68.8%[61]. - Profit attributable to shareholders for the first quarter of 2023 was RMB 52,388,000, an increase of 55.8% from RMB 33,615,000 in the same quarter of 2022[61]. - Basic earnings per share for the first quarter of 2023 were 9.35 cents, compared to 6 cents in the first quarter of 2022, reflecting a 55.8% increase[61]. - Other income for the first quarter of 2023 was RMB 45,831,000, significantly up from RMB 5,701,000 in the same period last year[61]. Cost Management - The distribution and selling costs as a percentage of revenue decreased to 44.2% from 46.8% in the previous year, a reduction of 2.6%[15]. - Administrative expenses decreased from RMB 37,153,000 in the previous year to RMB 16,387,000 in the current year[15]. - Financial expenses decreased to RMB 26,000 from RMB 480,000 in the first quarter of 2022, indicating improved financial management[61]. Dividends - The company plans to distribute a special dividend of RMB 0.50 per share, totaling RMB 280,125,000, subject to shareholder approval[32]. - The board proposed a special dividend of RMB 0.50 per share, subject to shareholder approval at the upcoming extraordinary general meeting[34]. - The company declared a dividend of RMB 280,125,000 for the first quarter of 2023, compared to RMB 35,016,000 in the same period of 2022[61]. - The company did not recommend the payment of an interim dividend for the three months ended March 31, 2023[10]. Production and Operations - The company has officially commenced production in its small-volume injection workshop, increasing production capacity[37]. - The product catalog continues to expand, enhancing the company's R&D capabilities and market competitiveness[38]. - The company continues to operate in the manufacturing and distribution of traditional Chinese medicine and pharmaceutical products without any changes in business nature[62]. Financial Position - As of March 31, 2023, the company's cash and bank balances totaled RMB 978,742,000, up from RMB 834,176,000 in 2022[38]. - The unaudited net asset value of the group as of March 31, 2023, was approximately RMB 1,664,686,000, compared to RMB 1,487,364,000 in 2022[38]. - The capital debt ratio as of March 31, 2023, was 0.02%, a slight decrease from 0.03% on March 31, 2022[39]. - The company maintains a robust financial position, with no significant fluctuations in production and material costs reported[35]. Corporate Governance - The company has adopted a code of conduct for securities trading that meets or exceeds the standards set by GEM listing rules[55]. - The chairman, Zhang Hong, is also the CEO, a situation the board believes does not affect accountability or independent decision-making[57]. - The effective corporate income tax rate for the company remains at 15% for the three months ended March 31, 2023, consistent with the previous year[8]. - There were no potential diluted shares during the reporting period, hence no diluted earnings per share were presented[9].

Financial Performance - For the three months ended March 31, 2023, the company reported revenue of RMB 142,544,000, a decrease of 26.3% compared to RMB 193,367,000 for the same period in 2022[5] - Gross profit for the same period was RMB 100,789,000, down 37.8% from RMB 161,864,000 year-over-year[5] - Operating profit increased to RMB 67,224,000, compared to RMB 39,863,000 in the previous year, reflecting a growth of 68.7%[5] - Profit attributable to shareholders was RMB 52,388,000, representing a 55.8% increase from RMB 33,615,000 in the same quarter of 2022[5] - Basic earnings per share rose to 9.35 cents, up from 6 cents year-over-year[5] - Other income significantly increased to RMB 45,831,000 from RMB 5,701,000, marking a growth of 705.5%[5] - As of March 31, 2023, the company reported a net profit of RMB 52,388,000 for the three-month period, an increase from RMB 33,615,000 for the same period in 2022, representing a growth of approximately 55.8%[25] - The gross margin for the three months ended March 31, 2023, was approximately 70.7%, a decrease of 13% compared to 83.7% for the same period in 2022[28] Dividends and Shareholder Returns - The company did not recommend the payment of an interim dividend for the three months ended March 31, 2023, consistent with the previous year[24] - The board of directors proposed a special dividend of RMB 0.50 per share (before tax), totaling RMB 280,125,000, which is significantly higher than the RMB 35,015,625 distributed in the previous fiscal year[47] - The company plans to hold a special general meeting on June 2, 2023, to approve the proposed special dividend[47] Taxation and Financial Position - The effective corporate income tax rate for the company remains at 15% for the period, unchanged from the previous year[22] - The company’s income tax expense for the three months ended March 31, 2023, was RMB 14,810,000, compared to RMB 5,768,000 for the same period in 2022, indicating an increase in tax obligations[45] - The company's cash and bank balances totaled RMB 978,742,000 as of March 31, 2023, up from RMB 834,176,000 as of March 31, 2022, indicating a year-over-year increase of approximately 17.3%[31] - The unaudited consolidated net asset value of the company was approximately RMB 1,664,686,000 as of March 31, 2023, compared to RMB 1,487,364,000 as of March 31, 2022, reflecting a growth of about 11.9%[31] - As of March 31, 2023, the company's debt-to-asset ratio was 0.02%, down from 0.03% on March 31, 2022[57] Operational Developments - The company operates primarily in the manufacturing and distribution of traditional Chinese medicine and pharmaceutical products within China[12] - The company has successfully passed the consistency evaluation for its injectable product and has entered the seventh batch of national collection, indicating progress in product development and commercialization[29] - The company has officially commenced production in its small-volume injection workshops, increasing production capacity[53] - The company's product portfolio continues to expand, enhancing its R&D capabilities and market competitiveness[54] - The company maintained a stable financial position during the reporting period, with no significant fluctuations in production and material costs reported[28] Compliance and Governance - The financial results are unaudited and have been reviewed by the company's audit committee[19] - The company has adopted relevant guidelines for directors conducting securities transactions, ensuring compliance with GEM listing rules[64] - The company has not purchased, sold, or redeemed any of its listed shares during the reporting period[76] - The board believes that the foreign exchange risk has minimal impact on the group[56] Cost Management - The distribution and selling costs as a percentage of revenue for 2023 were 44.2%, a decrease of 2.6% from 46.8% in the same period last year[52] - Administrative expenses decreased from RMB 37,153,000 for the three months ending March 31, 2022, to RMB 16,387,000 in the same period of 2023[52]

Financial Performance - The Group's revenue for 2022 was RMB 841,586,000, representing a 19.3% increase from RMB 705,456,000 in 2021[27]. - Sales of Chinese medicines and pharmaceutical products increased to RMB 841,586,000 in 2022, up from RMB 705,456,000 in 2021, representing a growth of approximately 19.3%[43]. - The profit attributable to owners of the Company for the year ended December 31, 2022, was RMB 193,565,000, up from RMB 143,283,000 in 2021, reflecting a growth of approximately 35.2%[52]. - Other income and gains for the year were approximately RMB 59,737,000, compared to RMB 51,616,000 in 2021[142]. - The gross profit margin for the year ended December 31, 2022, was approximately 77%, a decrease of 5.2% from 82.2% in 2021[142]. - Basic earnings per share rose to RMB 34.55 cents from RMB 25.57 cents, marking an increase of 35.2%[162]. Assets and Liabilities - Total assets increased to RMB 2,372,841,000 in 2022 from RMB 2,072,313,000 in 2021[142]. - The Group's total liabilities and equity as of 31 December 2022 were not disclosed in the provided documents, but the increase in assets suggests potential growth in equity[75]. - The Group's total liabilities to total assets ratio was 32% (2021: 30%) calculated from total liabilities of RMB 760,543,000 (2021: RMB 618,564,000) and total equity and liabilities of RMB 2,372,841,000 (2021: RMB 2,072,313,000)[144]. - The Group's gearing ratio, derived from total borrowings to total net assets, was 0.02% (2021: 0.03%) as of December 31, 2022[144]. Investments - As of December 31, 2022, the company held Wealth Management Products totaling approximately RMB263,074,000, with unrealized gains from fair value changes amounting to approximately RMB3,074,000[5]. - The Group's investment in time deposits as of December 31, 2022, was approximately RMB866,856,000, up from RMB806,918,000 in 2021[95]. - The Group's total initial investment cost in wealth management products was RMB 260,000,000[164]. - The fair value of unlisted financial assets increased to RMB 263,074,000 in 2022 from RMB 176,533,000 in 2021[171]. Research and Development - The Group invested approximately RMB40,440,133 in research and development projects during the year[97]. - The R&D department successfully developed the Compound Huonaoshu capsule, which significantly contributed to the Group's revenue and led to its listing in Hong Kong[97]. - The Company has enhanced its R&D capabilities by building a new R&D inspection center with advanced equipment for new product trials[142]. - The company has been actively involved in the research and development of new medicines, including three new products: Infantile spleen-strengthening oral solution, Colon Recovery Capsule, and Ginseng Glycopeptide Injection[124]. Employee and Management - The Group's contribution to retirement benefits schemes for the year ended 31 December 2022 amounted to RMB2,720,000, a significant increase from RMB597,000 in 2021, representing a growth of approximately 354%[67]. - Salaries, allowances, and other benefits increased to RMB4,479,000 in 2022 from RMB2,832,000 in 2021, reflecting a growth of about 58%[65]. - The Company has a total of 823 employees, with remuneration based on market conditions and individual performance, including discretionary bonuses and other benefits[144]. - The executive general manager, Zhang Yi, has been with the company since 2015, contributing to its strategic direction and management[122]. Inventory and Assets Management - Total inventories increased to RMB 138,880,000 in 2022 from RMB 87,168,000 in 2021, with a provision for obsolete and slow-moving inventories of RMB 5,893,000[115]. - The carrying amount of goodwill as of December 31, 2022, remained unchanged at RMB 6,254,000, with no impairment loss recognized[136]. - The carrying amount of bearer biological assets, specifically ginseng, remained stable at RMB15,080,000 for both 2022 and 2021[71]. - The company recognized a provision for obsolete and slow-moving inventories amounting to approximately RMB 5,038,000, compared to RMB 735,000 in 2021[138]. Taxation - The PRC corporate income tax for the current year was RMB 20,957,000, with a deferred taxation of RMB 26,727,000, compared to RMB 30,520,000 in 2021[34]. - Deferred income tax assets are recognized only if it is probable that future taxable profit will be available[19]. - The net deferred tax assets/(liabilities) stood at RMB 23,289,000 in 2022, compared to a net liability of RMB 2,353,000 in 2021[199]. Corporate Governance and Compliance - The Group is committed to maintaining high environmental and social standards, complying with all relevant laws and regulations related to health, safety, and the environment[144]. - The Group encourages participation in environmental and social activities that benefit the community as a whole[144]. - The Group has established a Risk Management Committee to enhance the assessment and management of investments in Wealth Management Products and time deposits[95].

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，並明確表示概不就因本公告全 部或任何部份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。 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） 二 零 二 二 年 度 業 績 公 告 吉林省輝南長龍生化藥業股份有限公司（「本公司」）之董事會（「董事會」）欣然宣 佈，本公司及其附屬公司截至二零二二年十二月三十一日止年度之經審核業 績。本公告載列本公司二零二二年年報全文，乃符合香港聯合交易所有限公司 （「聯交所」）GEM證券上市規則（「GEM上市規則」）有關年度業績初步公告附載之 資料之相關規定。 承董事會命 吉林省輝南長龍生化藥業股份有限公司 主席 張弘 中國吉林省 二零二三年三月三十一日 ...