Financial Performance - Shenzhen Neptunus Interlong Bio-technique Company Limited reported a revenue of RMB 500 million for the fiscal year 2021, representing a 15% increase compared to the previous year[14]. - The company achieved a net profit of RMB 80 million, which is a 20% increase year-on-year, indicating strong operational performance[14]. - The Group's total revenue for the Year was approximately RMB 838,805,000, representing a decrease of approximately 18.67% compared to the previous year[69]. - Revenue from the manufacturing and selling of medicines segment was approximately RMB 510,221,000, accounting for approximately 60.83% of total revenue, with a year-on-year increase of approximately 15.62%[69]. - Revenue from the sales and distribution of medicines and healthcare products segment was approximately RMB 328,584,000, accounting for approximately 39.17% of total revenue, with a year-on-year decrease of approximately 44.32%[69]. - The gross profit for the Year was approximately RMB 374,103,000, representing a decrease of approximately 34.87% from RMB 574,360,000 in the previous year[71]. - The gross profit margin decreased to approximately 45% from 56% in the previous year, a decline of about 11 percentage points[74]. - Profit after tax decreased to approximately RMB 34,306,000, down approximately 11.45% from RMB 38,742,000 in the previous year[79]. Market Expansion and Strategy - User data showed a growth in active users by 25%, reaching a total of 1.5 million active users by the end of 2021[14]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[14]. - A strategic acquisition of a local biotech firm is anticipated to enhance the company's product portfolio and is expected to be completed by Q3 2022[14]. - The Group is expanding its product line and adopting a diversified development strategy to stabilize business and maintain growth in the face of market competition[54]. - The Group aims to enhance product quality and core competitiveness through the development of traditional Chinese medicine[31]. - The Group's strategy includes diversifying development, enhancing regional market development, and launching promotional activities to stabilize business growth[55]. Research and Development - The company has allocated RMB 20 million for research and development in new technologies, focusing on enhancing product efficacy and safety[14]. - The Group's research and development efforts focus on quality consistency evaluation and new varieties of medicines[30]. - The Group plans to allocate more resources to research and development of new drugs and improve production capacity and product quality assurance systems[64]. - The Group aims to cultivate core varieties that are competitive in terms of efficacy, brand, or cost to ensure sustainable development[66]. Operational Efficiency - The company aims to improve operational efficiency by reducing production costs by 10% through process optimization[14]. - The Group's pharmaceutical subsidiaries have faced increased operational stress due to stricter national regulations and rising prices of Chinese medicinal materials, leading to higher manufacturing costs[43]. - To address these challenges, the subsidiaries have developed direct cooperation with active ingredient manufacturers and adjusted production plans to meet market demand, resulting in higher sales of high-margin products[43]. Corporate Governance and Management - The company is focused on expanding its market presence and enhancing its product offerings through strategic R&D initiatives led by experienced directors[123][127]. - The board of directors includes members with significant expertise in finance, management, and pharmaceutical research, ensuring robust governance and strategic oversight[127][133]. - The Company is committed to maintaining high standards of corporate governance through the involvement of independent directors in key committees[133]. - Future strategies may include potential mergers and acquisitions to enhance market share and product development capabilities[123][128]. Legal and Compliance - A lawsuit involving Fuzhou Neptunus Fuyao Pharmaceutical Company claimed approximately RMB 153.27 million, which has since been settled[49]. - The Group faced a legal dispute involving a claim of RMB 153,270,800, which was settled in January 2022, incurring related costs of approximately RMB 840,000[62]. - The Company received annual confirmations of independence from its independent non-executive Directors, maintaining compliance with GEM Listing Rules[173]. Employee and Staffing - As of December 31, 2021, the Group employed a total of 1,401 staff, an increase of 236 employees compared to 1,217 in 2020 due to the acquisition of Neptunus Zhongxin[107][109]. - Staff costs, including directors' remuneration, amounted to approximately RMB 120,083,000, up from approximately RMB 99,351,000 in 2020, reflecting a significant increase in employee compensation and benefits[108]. - The increase in employee numbers and costs is part of the Group's strategy to maintain competitiveness and broaden appeal[109]. - The Group provided various benefits and training opportunities to employees to enhance performance and retention[108][109]. Financial Position - Net current assets as of December 31, 2021, were approximately RMB 404,489,000, a decrease of approximately RMB 192,595,000 from RMB 597,084,000 as of December 31, 2020[87]. - The gearing ratio as of December 31, 2021, was approximately 38.46%, compared to nil in the previous year[90]. - The Group had short-term bank borrowings of RMB 101,137,000 as of December 31, 2021[84]. - The Group has contracted commitments for future capital expenditure of approximately RMB 1,337,000, which is expected to be financed by bank deposits and borrowings[104]. Shareholder Information - The Company did not recommend any dividends for the Year, consistent with the previous year where no dividends were distributed[158]. - As of December 31, 2021, the Company had no distributable reserves, with accumulated losses amounting to approximately RMB 1.2 billion[158]. - The substantial shareholders' interests in shares or underlying shares were recorded in the register required to be kept by the Company[200].

Financial Performance - Revenue for the three months ended September 30, 2021, was RMB 205,582,000, a decrease of 31.5% compared to RMB 300,142,000 in the same period of 2020[9] - Gross profit for the nine months ended September 30, 2021, was RMB 275,364,000, down 33.2% from RMB 412,367,000 in the corresponding period of 2020[9] - Profit from operations for the three months ended September 30, 2021, was RMB 9,864,000, a decline of 30.5% compared to RMB 14,269,000 in the same period of 2020[11] - Profit before taxation for the nine months ended September 30, 2021, was RMB 34,441,000, a decrease of 5.2% from RMB 36,335,000 in the same period of 2020[11] - The net profit attributable to owners of the Company for the three months ended September 30, 2021, was RMB 5,560,000, down 45.5% from RMB 10,255,000 in the same period of 2020[11] - Earnings per share for the three months ended September 30, 2021, was RMB 0.33, compared to RMB 0.61 in the same period of 2020[11] - Total comprehensive income for the nine months ended September 30, 2021, was RMB 26,661,000, a decrease of 12.5% from RMB 30,491,000 in the same period of 2020[11] - The profit for the period ended September 30, 2021, was RMB 25,207,000, a decrease from RMB 28,505,000 for the same period in 2020, representing a decline of approximately 11.3%[14] Expenses - Selling and distribution expenses for the three months ended September 30, 2021, were RMB 58,961,000, a significant reduction from RMB 128,585,000 in the same period of 2020[9] - Administrative expenses for the nine months ended September 30, 2021, were RMB 55,949,000, an increase from RMB 45,071,000 in the same period of 2020[9] - Other operating expenses amounted to approximately RMB 26,139,000, representing a decrease of approximately 43.64% from approximately RMB 46,378,000 for the corresponding period of last year[88] - Finance costs for the Reporting Period amounted to approximately RMB 2,193,000, representing an increase of approximately 192.40% from approximately RMB 750,000 for the corresponding period of last year[88] - Staff costs for the three months ended September 30, 2021, were RMB 25,940,000, slightly up from RMB 24,835,000 in 2020, indicating a 4.5% increase[59] - Research and development costs for the three months ended September 30, 2021, amounted to RMB 6,699,000, compared to RMB 5,534,000 in 2020, reflecting a growth of 21.0%[59] Revenue Breakdown - Revenue from manufacturing and selling of medicines was RMB 130,547,000, slightly up from RMB 129,468,000 in 2020, representing a 0.8% increase[50] - Revenue from sales and distribution of medicines and healthcare products was RMB 75,035,000, down 56.0% from RMB 170,674,000 in 2020[50] - Total revenue for the nine months ended September 30, 2021, was RMB 596,776,000, a decrease of 21.4% compared to RMB 759,688,000 in the same period of 2020[50] - Other revenue for the nine months ended September 30, 2021, was RMB 21,490,000, an increase from RMB 10,801,000 in the same period of 2020[9] Equity and Reserves - As of September 30, 2021, total equity increased to RMB 942,867,000, up from RMB 887,421,000 as of September 30, 2020, reflecting a growth of approximately 6.2%[14] - The retained earnings as of September 30, 2021, reached RMB 236,109,000, compared to RMB 203,036,000 at the end of the previous year, indicating an increase of about 16.3%[14] - The statutory reserve fund increased to RMB 48,686,000 as of September 30, 2021, compared to RMB 48,465,000 at the beginning of the year, showing a slight increase[14] Financial Position and Liabilities - The company paid dividends of RMB 3,000,000 to non-controlling interests during the reporting period[14] - The total interest expense on financial liabilities not at fair value through profit or loss for the nine months ended September 30, 2021, was RMB 2,193,000, up from RMB 750,000 in 2020, representing a growth of 192.4%[56] - As of September 30, 2021, the Group had no significant contingent liabilities[92] Corporate Governance - The Company has established an Audit Committee to review financial statements and provide suggestions to the Board[132] - The Audit Committee has reviewed the unaudited condensed consolidated results for the Reporting Period[132] - The Company complied with the Corporate Governance Code and Corporate Governance Report requirements under GEM Listing Rules[132] - The Board aims to enhance corporate governance standards to ensure responsible business operations[132] Shareholding Structure - Neptunus Bio-engineering holds approximately 73.51% of the entire issued share capital of the Company, with 70.38% directly held and 3.13% indirectly held through Shenzhen Neptunus Oriental Investment Company Limited[102] - As of September 30, 2021, Neptunus Bio-engineering is the beneficial owner of 1,181,000,000 domestic shares, representing 94.33% of all domestic shares and 70.38% of the Company's issued share capital[110] - The Company has not adopted any share option scheme or granted any options, convertible securities, warrants, or similar rights as of September 30, 2021[104] Compliance and Conduct - Neptunus Bio-engineering confirmed compliance with the Non-Competition Undertakings during the Reporting Period, ensuring no direct or indirect competition with the Company[126] - The Company has adopted a code of conduct regarding securities transactions by Directors, confirming compliance with the required standards during the Reporting Period[127] - The Company is committed to operating its business in an honourable manner[132]

Revenue and Profitability - Revenue for the six months ended June 30, 2021, was RMB 391,194,000, a decrease of 15% compared to RMB 459,546,000 for the same period in 2020[8] - Gross profit for the six months ended June 30, 2021, was RMB 185,303,000, down 22.6% from RMB 239,800,000 in the prior year[8] - Profit and total comprehensive income for the period was RMB 22,685,000, an increase of 17.5% compared to RMB 19,254,000 for the same period in 2020[10] - Basic and diluted earnings per share for the six months was RMB 1.17 cents, compared to RMB 1.09 cents for the same period in 2020[10] - Profit before taxation for the six months was RMB 26,032,000, an increase of 16.2% compared to RMB 22,306,000 in the prior year[8] - The company reported a consolidated profit before taxation of RMB 26,032,000, up from RMB 22,306,000 in 2020, representing an increase of 16.2%[121] - For the three months ended June 30, 2021, the profit attributable to owners of the Company was approximately RMB 3,999,000, compared to RMB 8,932,000 for the same period in 2020, representing a decrease of 55.2%[150] - For the six months ended June 30, 2021, the profit attributable to owners of the Company was approximately RMB 19,647,000, compared to RMB 18,250,000 for the same period in 2020, representing an increase of 7.7%[150] Expenses and Costs - Selling and distribution expenses decreased significantly to RMB 121,177,000 for the six months ended June 30, 2021, from RMB 168,634,000 in 2020, a reduction of 28%[8] - Administrative expenses increased to RMB 34,465,000 for the six months ended June 30, 2021, compared to RMB 29,699,000 in the previous year, reflecting an increase of 16.5%[8] - Staff costs, including salaries and benefits, increased to RMB 32,845 for the six months ended June 30, 2021, from RMB 22,762 in 2020, reflecting a rise of 44.3%[138] - Research and development costs for the six months ended June 30, 2021, were RMB 11,402, up from RMB 10,375 in 2020, showing an increase of 9.9%[138] Assets and Liabilities - As of June 30, 2021, total assets amounted to RMB 935,317,000, an increase from RMB 908,615,000 as of December 31, 2020, reflecting a growth of approximately 2.5%[14] - Current liabilities increased to RMB 310,658,000 from RMB 212,267,000, representing a rise of about 46.3%[14] - Net current assets decreased to RMB 386,327,000 from RMB 597,084,000, indicating a decline of approximately 35.3%[14] - The company's total equity reached RMB 905,231,000, up from RMB 895,672,000, marking an increase of about 1.6%[16] - Trade and other payables increased to RMB 244,388,000 from RMB 179,509,000, reflecting a growth of about 36.1%[14] - Total reportable segment assets increased to RMB 1,393,708,000 in 2021 from RMB 1,251,998,000 in 2020, indicating a growth of 11.3%[121] - The consolidated total liabilities rose to RMB 340,744, compared to RMB 225,210 at the end of 2020, indicating an increase of about 51.1%[124] Cash Flow - Net cash used in operating activities was RMB 65,036,000 in H1 2021, compared to a cash generation of RMB 70,854,000 in H1 2020[22] - Net cash outflow on acquisition of a subsidiary amounted to RMB 63,683,000, with total cash used in investing activities reaching RMB 64,412,000 in H1 2021[24] - Cash and cash equivalents at the end of the period were RMB 261,956,000, an increase from RMB 224,030,000 at the end of H1 2020[24] - Net cash used in financing activities was RMB 20,481,000 in H1 2021, compared to RMB 3,510,000 in H1 2020, indicating a significant increase in cash outflow[24] - The net decrease in cash and cash equivalents for the period was RMB 149,929,000, a slight improvement from a decrease of RMB 160,181,000 in H1 2020[24] Segment Information - The Group operates in two reportable segments: manufacturing and selling of medicines, and sales and distribution of medicines and healthcare products[39] - Reportable segment revenue for the six months ended June 30, 2021, was RMB 412,103,000, a decrease of 12.8% compared to RMB 472,938,000 in 2020[121] - Revenue from external customers increased to RMB 233,766,000 in 2021 from RMB 199,482,000 in 2020, representing a growth of 17.2%[121] - Reportable segment profit (adjusted EBT) rose significantly to RMB 26,391,000 in 2021, up from RMB 23,365,000 in 2020, marking an increase of 8.7%[121] Acquisitions and Investments - On June 1, 2021, the Group completed the acquisition of 51% equity interest in Beijing Neptunus Zhongxin Pharmaceutical Co., Limited for a total consideration of RMB 76,500,000[196] - The goodwill arising from the acquisition of Neptunus Zhongxin was approximately RMB 90,163,000[197] - The Group made a payment of RMB 769,000 for lease liabilities in H1 2021, which was not present in H1 2020[24] - The Group purchased property, plant, and equipment amounting to approximately RMB 7,641,000 during the Reporting Period, a decrease from RMB 14,444,000 in 2020[150] Financial Reporting and Standards - The Group is currently assessing the impact of new and amended HKFRSs on its financial position and results for the first year of application, with expectations of no material impact[30] - The Group adopted new HKFRSs effective from January 1, 2021, including amendments related to Covid-19 rent concessions and interest rate benchmark reforms[30] - The interim financial statements are unaudited, indicating a preliminary assessment of the Group's financial performance[28] - The Group's financial statements are prepared on a historical cost basis and presented in Renminbi (RMB)[28]

Financial Performance - Revenue for the first quarter of 2021 was RMB 219,289,000, representing an increase of 12.5% compared to RMB 194,847,000 in the same period of 2020[5] - Gross profit for the quarter was RMB 118,147,000, up 28.6% from RMB 91,854,000 year-on-year[5] - Profit from operations increased to RMB 22,323,000, a rise of 69.9% compared to RMB 13,124,000 in the first quarter of 2020[5] - Profit before taxation was RMB 22,312,000, compared to RMB 12,882,000 in the same quarter of the previous year, marking a growth of 73.3%[7] - Net profit for the period attributable to owners of the Company was RMB 15,648,000, up 67.5% from RMB 9,318,000 in the first quarter of 2020[7] - Earnings per share for the period increased to RMB 0.93, compared to RMB 0.56 in the same period last year, reflecting a growth of 66.1%[7] - The total comprehensive income for the period was RMB 18,073,000, compared to RMB 9,777,000 in the first quarter of 2020, reflecting an increase of 84.1%[7] Expenses - Selling and distribution expenses rose to RMB 77,118,000, an increase of 33.9% from RMB 57,604,000 in the first quarter of 2020[5] - Administrative expenses were RMB 17,175,000, up from RMB 15,652,000, indicating a year-on-year increase of 9.7%[5] - Other operating expenses amounted to approximately RMB 6,061,000, representing a decrease of approximately 21.71% from approximately RMB 7,742,000 for the corresponding period of last year[62] - Finance costs amounted to approximately RMB 11,000, representing a decrease of approximately 95.45% from approximately RMB 242,000 for the corresponding period of last year[62] Revenue Breakdown - Revenue for the three months ended March 31, 2021, was RMB 219,289,000, an increase of 12.6% compared to RMB 194,847,000 for the same period in 2020[18] - Sales and distribution of medicines accounted for RMB 121,789,000, up from RMB 86,765,000 in the previous year, representing a growth of 40.4%[18] - Revenue from the manufacturing and selling of medicines segment was approximately RMB 121,789,000, accounting for approximately 55.54% of the Group's total revenue, with a year-on-year increase of approximately 40.37%[60] - Revenue from the sales and distribution of medicines and healthcare products segment was approximately RMB 97,500,000, accounting for approximately 44.46% of total revenue, with a year-on-year decrease of approximately 9.79%[60] Research and Development - The Group plans to increase investment in research and development and product quality assurance systems to ensure sustainable development amid changing market conditions[48] - The Group's research and development efforts include independent projects and collaborations with external institutions to meet internal demands[44] - Research and development costs for the quarter were RMB 5,320,000, slightly down from RMB 5,510,000 in the same period last year[28] Market Strategy - The company plans to continue expanding its market presence and investing in new product development to drive future growth[19] - The Group is closely monitoring national policies and market trends to seize opportunities arising from industry changes[49] - The Group plans to enhance R&D and quality system investments while expanding its sales network to ensure stable development in drug production and sales[49] Corporate Governance - The Company has adhered to the requirements under the Corporate Governance Code during the Quarter[118] - The roles of the Chairman and General Manager are separate, ensuring proper governance as per the Corporate Governance Code[116] - The Company will continue to enhance its corporate governance standards to operate in an honorable and responsible manner[118] - The Audit Committee has reviewed the unaudited consolidated results of the Group for the Quarter[116] - The Company has adopted a code of conduct regarding securities transactions by Directors, confirming no violations during the Quarter[114] Shareholding and Interests - Mr. Zhang Feng, the chairman, holds approximately 0.05% of the issued share capital of Neptunus Bio-engineering, which controls about 73.51% of the Company[71] - The total beneficial interest in the Company by its controlling shareholder is approximately 73.51%[71] - Neptunus Bio-engineering directly holds 70.38% and indirectly holds 3.13% of the Company's issued share capital[71] - The Company has entered into non-competition undertakings with Neptunus Bio-engineering to prevent direct or indirect competition[112] Operational Challenges - The Group's subsidiary is facing increased operational pressure due to national policy impacts, market fluctuations, and intensified competition in drug bidding[49] - The prices of pharmaceutical products are decreasing while the prices of active ingredients are increasing, creating continuous pressure on the Group's pharmaceutical manufacturing subsidiaries[48]

Financial Performance - Shenzhen Neptunus Interlong Bio-technique Company Limited reported a significant increase in revenue, achieving a total of 1.2 billion RMB, representing a growth of 15% year-over-year[22]. - The Group's revenue for the Year was approximately RMB1,031,369,000, representing a decrease of approximately 4.58% compared to the previous year[81]. - Revenue from the manufacturing and selling of medicines segment was approximately RMB441,281,000, accounting for approximately 42.79% of the total revenue, while revenue from the sales and distribution of medicines and healthcare products segment was approximately RMB590,088,000, accounting for approximately 57.21%[81]. - The Group's gross profit margin has decreased due to lower drug prices, increased active ingredient costs, and higher quality assurance system investments[55]. - The Group's gross profit for the Year was approximately RMB574,360,000, a decrease of approximately 10.68% compared to the previous year[81]. - Selling and distribution expenses were approximately RMB420,578,000, representing a decrease of approximately 7.89% from the previous year[81]. - Administrative expenses for the Year were approximately RMB64,456,000, a decrease of approximately 1.70% compared to the previous year[81]. - Other operating expenses increased to approximately RMB53,471,000, representing an increase of approximately 7.14% compared to the previous year[84]. - Finance costs for the Year amounted to approximately RMB830,000, representing a decrease of approximately 41.42% compared to the previous year[86]. Market Expansion and Strategy - The company has expanded its user base, now serving over 500,000 active users, which is an increase of 20% compared to the previous year[22]. - Market expansion efforts include entering two new international markets, with a goal to increase overseas sales by 25%[22]. - The company is considering strategic acquisitions to enhance its product portfolio and market presence, with a budget of up to 300 million RMB for potential targets[22]. - A new product line is set to launch in Q3 2021, expected to contribute an additional 200 million RMB in revenue[22]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[128]. - A strategic acquisition of a local biotech firm is anticipated to enhance the company's R&D capabilities and product offerings[128]. - The company has established partnerships with three major hospitals to enhance distribution channels and increase product visibility[128]. - The Group plans to expand and adjust its product structure, focusing on core varieties that are competitive in efficacy, branding, or cost[34]. Research and Development - The company is investing heavily in R&D, allocating 150 million RMB for the development of new biotechnologies and products[22]. - The Group's R&D efforts will focus on independent and commissioned research to accelerate the clinical research and application of new drugs[42]. - The company plans to increase investment in research and development of new drugs and improve production capacity and quality assurance systems[75]. - The Group has established partnerships with three leading research institutions to accelerate innovation in biotechnology[22]. Operational Efficiency and Sustainability - The management highlighted a focus on improving operational efficiency, targeting a reduction in costs by 5% over the next year[22]. - A commitment to sustainability has been made, with plans to reduce carbon emissions by 30% by 2025[22]. - The management emphasized a commitment to sustainability, aiming to reduce operational costs by 5% through eco-friendly practices[128]. Impact of COVID-19 - The COVID-19 pandemic significantly impacted various sectors of the pharmaceutical industry, with the medical device sector and vaccine industry benefiting, while respiratory and fever drug sectors faced negative effects[33]. - The impact of the COVID-19 pandemic has led to a decrease in demand for non-epidemic drugs in medical institutions, affecting the sales of the Group's self-manufactured products[55]. - The Group increased the purchase and sales of epidemic prevention products and healthcare food products to offset the pandemic's negative impact on certain product sales[34]. - The COVID-19 pandemic and changes in medical insurance policies impacted the Group's sales, but the business remained stable due to flexible marketing strategies and promotion of epidemic prevention products[60]. Governance and Management - The Board is committed to improving governance, strengthening management, and enhancing the internal control system to support the Group's development[40]. - The leadership team is committed to maintaining high standards of corporate governance and transparency in its operations[117]. - The company has a strong leadership team with diverse backgrounds in management, finance, and pharmaceutical operations[99]. - The board includes members with significant experience in both domestic and international pharmaceutical markets[99]. Shareholder Information - As of December 31, 2020, the Company had no distributable reserves and an accumulated loss of approximately RMB 1.2 billion[136]. - The Directors do not recommend the distribution of any dividends for the Year, consistent with 2019[136]. - The Company has not adopted any share option scheme or granted any options or convertible securities as of December 31, 2020[144]. - The substantial shareholder Neptunus Bio-engineering held 1,181,000,000 domestic shares, representing 94.33% of all domestic shares and 70.38% of the Company's issued share capital[160].

a == 深 圳 市 海 王 英 特 龍 生 物 技 術 股 份 有 限 公 司 SHENZHEN NEPTUNUS INTERLONG BIO-TECHNIQUE COMPANY LIMITED* (a joint stock limited company incorporated in the People's Republic of China) (於中華人民共和國註冊成立之股份有限公司) Stock Code 股份代號 : 8329 * For identification purpose only 僅供識別之用 Third Quarterly Report |第 | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Financial Performance - Revenue for the six months ended June 30, 2020, was RMB 459,546, a decrease of 3.4% compared to RMB 475,715 for the same period in 2019[7] - Gross profit for the six months ended June 30, 2020, was RMB 239,800, down 17.5% from RMB 290,527 in 2019[7] - Profit before taxation for the six months ended June 30, 2020, was RMB 22,306, a decrease of 19.0% compared to RMB 27,507 in 2019[7] - Profit and total comprehensive income for the period attributable to owners of the Company was RMB 18,250, slightly down from RMB 18,552 in 2019[10] - Basic and diluted earnings per share for the six months ended June 30, 2020, was RMB 1.09, compared to RMB 1.11 for the same period in 2019[10] - The Company reported a profit from operations of RMB 22,816 for the six months ended June 30, 2020, down from RMB 28,163 in 2019[7] Revenue Breakdown - Revenue from the manufacturing and selling of medicines was RMB 264,699,000 for the six months ended June 30, 2020, compared to RMB 258,832,000 in 2019, reflecting a growth of 2.5%[35] - Revenue from sales and distribution of medicines and healthcare products was RMB 151,982,000 for the six months ended June 30, 2020, down 41.5% from RMB 260,064,000 in 2019[35] - Other revenue for the six months ended June 30, 2020, totaled RMB 7,150,000, an increase of 67.5% compared to RMB 4,285,000 in 2019[39] - The reportable segment revenue for the six months ended June 30, 2020, was RMB 472,938,000, a decrease from RMB 496,499,000 in 2019[60] - Revenue from the manufacturing and selling of medicines segment was RMB 212,874,000 for the six months ended June 30, 2020, compared to RMB 260,064,000 in 2019[60] - The sales and distribution of medicines and healthcare products segment generated revenue of RMB 3,070,000 in the first half of 2020, down from RMB 16,483,000 in 2019[60] Expenses and Cost Management - Selling and distribution expenses decreased to RMB 168,634 for the six months ended June 30, 2020, from RMB 218,342 in 2019, a reduction of 22.8%[7] - Administrative expenses for the six months ended June 30, 2020, were RMB 29,699, consistent with RMB 29,904 in 2019[7] - The company reported a decrease in inventories by RMB 10,398,000 in 2020, compared to an increase of RMB 40,772,000 in 2019, indicating improved inventory management[22] - The decrease in trade and other receivables was RMB 69,483,000 in 2020, compared to an increase of RMB 8,019,000 in 2019, showing better collection efficiency[22] Assets and Liabilities - As of June 30, 2020, total assets amounted to RMB 889,588,000, an increase from RMB 879,832,000 as of December 31, 2019, reflecting a growth of approximately 1.6%[14] - Current liabilities decreased to RMB 195,115,000 from RMB 244,291,000, representing a reduction of about 20.1%[14] - Net current assets increased to RMB 582,141,000, up from RMB 561,800,000, indicating a growth of approximately 3.6%[14] - Total equity attributable to owners of the Company reached RMB 775,396,000, compared to RMB 757,146,000 at the end of 2019, marking an increase of about 2.4%[16] - Cash and cash equivalents decreased to RMB 224,030,000 from RMB 384,211,000, a decline of approximately 41.8%[14] - Trade and other receivables decreased to RMB 227,190,000 from RMB 297,133,000, reflecting a decrease of about 23.5%[14] - Inventories decreased to RMB 113,486,000 from RMB 124,747,000, indicating a reduction of approximately 9.0%[14] - Non-current assets totaled RMB 307,447,000, down from RMB 318,032,000, representing a decrease of about 3.3%[14] Cash Flow - Net cash generated from operating activities was RMB 70,854,000 in 2020, compared to a net cash used of RMB 24,575,000 in 2019, indicating a significant turnaround[22] - The cash from operations significantly improved, with a total of RMB 82,832,000 generated in 2020 compared to RMB (9,742,000) used in 2019[22] - Cash and cash equivalents at the end of the period decreased to RMB 224,030,000 in 2020 from RMB 288,590,000 in 2019, a decline of 22.3%[24] - The company maintained a strong cash position with cash and cash equivalents at the beginning of the period at RMB 384,211,000, up from RMB 323,577,000 in 2019[24] Inventory Management - The company recognized a reversal of write down of inventories amounting to approximately RMB 669,000 for the six months ended June 30, 2020, compared to RMB 1,776,000 in the same period of 2019[40] - The inventory write-back amounted to approximately RMB 669,000, primarily due to expired inventory, compared to RMB 1,776,000 for the same period in 2019[41] - The company experienced a significant increase in inventory management efficiency, as indicated by the reversal of write-downs[184] Segment Performance - The adjusted earnings before taxes (EBT) for the reportable segments was RMB 23,365,000 for the first half of 2020, down from RMB 29,079,000 in the same period of 2019[60] - The research and development services segment reported a loss of RMB 1,631,000 for the first half of 2020, compared to a loss of RMB 2,895,000 in 2019[60] - The inter-segment revenue for the first half of 2020 was RMB 13,392,000, down from RMB 20,784,000 in 2019[60] - The group operates all its activities in the PRC, with no reportable operating segments aggregated[43] - The group’s executive directors monitor segment performance based on adjusted EBT, which excludes items not specifically attributed to individual segments[46] Compliance and Reporting - The Company confirmed that the information contained in the report is accurate and complete in all material respects[5] - The condensed consolidated interim financial statements are unaudited[2] - The directors are currently assessing the possible impact of new and amended HKFRSs on the Group's results and financial position in the first year of application, but consider that these amendments are unlikely to have a material impact[31]

Financial Performance - Revenue for the three months ended March 31, 2020, was RMB 194,847,000, a decrease of 10.2% compared to RMB 216,883,000 in the same period of 2019[6] - Gross profit for the quarter was RMB 91,854,000, down 26.9% from RMB 125,654,000 year-over-year[6] - Profit before taxation decreased to RMB 12,882,000, a decline of 25.5% from RMB 17,344,000 in the previous year[8] - Net profit for the period was RMB 9,777,000, down 26.6% compared to RMB 13,317,000 in Q1 2019[8] - Earnings per share for the period attributable to owners of the Company was RMB 0.56, a decrease from RMB 0.72 in the same quarter of 2019[8] - The total comprehensive income attributable to owners of the Company was RMB 9,318,000, compared to RMB 12,122,000 in the same period last year, a decline of 23.1%[8] - For the three months ended March 31, 2020, the unaudited profit attributable to owners of the Company was approximately RMB 9,318,000, compared to RMB 12,122,000 for the same period in 2019, representing a decrease of approximately 23.0%[38] - The Group's profit after tax was approximately RMB 9,777,000, representing a decrease of approximately 26.58% from RMB 13,317,000 of the corresponding period last year[66] - Profit attributable to the owners of the Company was approximately RMB 9,318,000, representing a decrease of approximately 23.13% from RMB 12,122,000 of the corresponding period last year[66] Revenue Breakdown - Revenue from the manufacturing and selling of medicines was RMB 86,765,000, down 17.3% from RMB 104,883,000 in Q1 2019[20] - Revenue from sales and distribution of medicines and healthcare products was RMB 108,082,000, a decrease of 3.3% from RMB 112,000,000 in Q1 2019[20] - Revenue from the manufacturing and selling of medicines segment was approximately RMB 86,765,000, accounting for approximately 44.53% of total revenue, while revenue from the sales and distribution of medicines and healthcare products segment was approximately RMB 108,082,000, accounting for approximately 55.47%[60] - Revenue from the manufacturing and selling of medicines segment decreased by approximately 17.27% compared to the same period last year, while revenue from the sales and distribution of medicines and healthcare products segment decreased by approximately 3.50%[60] - The company reported a significant increase in revenue from the sales of medical devices, which reached approximately RMB 12,918,000 compared to RMB 791,000 in the same period last year[21] - The revenue from sales management services of pharmaceutical products was approximately RMB 749,000, which amounted to approximately 0.69% of the revenue of the sales and distribution of medicines and healthcare products segment[60] Expenses and Costs - Selling and distribution expenses were RMB 57,604,000, significantly lower than RMB 88,959,000 in the previous year, reflecting a reduction of 35.3%[6] - Administrative expenses increased slightly to RMB 15,652,000 from RMB 14,416,000, representing an 8.6% increase year-over-year[6] - Research and development costs for the quarter were RMB 5,510,000, down from RMB 6,437,000 in the same period last year, indicating a reduction of approximately 14.4%[34] - The cost of inventories for the quarter was RMB 100,917,000, an increase from RMB 89,076,000 in the previous year, reflecting a rise of approximately 13.3%[34] - The provision for PRC Enterprise Income Tax for the quarter was RMB 3,298,000, compared to RMB 4,100,000 in the same period last year, showing a decrease of approximately 19.6%[34] - The Group's selling and distribution expenses were approximately RMB 57,604,000, representing a decrease of approximately 35.25% from RMB 88,959,000 for the corresponding period last year[66] - The Group's administrative expenses for the Quarter were approximately RMB 15,652,000, representing an increase of approximately 8.57% from RMB 14,416,000 for the corresponding period last year[66] - The Group's other operating expenses amounted to approximately RMB 7,742,000, representing a decrease of approximately 15.77% from RMB 9,191,000 for the corresponding period last year[66] Market and Operational Insights - The Group continues to focus on expanding its product offerings and enhancing its market presence despite the revenue decline[19] - Future outlook includes potential growth in the healthcare sector and ongoing development of new pharmaceutical products[19] - The COVID-19 outbreak has led to a decline in sales revenue for various pharmaceutical products, as non-COVID-19-related clinical departments did not carry out regular practices[51] - The Group plans to adopt flexible and diversified marketing strategies to expand the market for pharmaceutical products and medical devices post-COVID-19[51] - The Group's pharmaceutical manufacturing segment has faced operational pressures due to national policies affecting the industry[51] Corporate Governance and Shareholding - The Group does not recommend the payment of any dividend for the quarter, consistent with the previous year where no dividend was paid[38] - The Company has confirmed compliance with Non-Competition Undertakings during the Quarter[126] - The Audit Committee has reviewed the unaudited consolidated results for the Quarter[130] - The Company has adhered to the Corporate Governance Code as per GEM Listing Rules during the Quarter[131] - As of March 31, 2020, the Company and its subsidiaries have not adopted any share option scheme or granted any options, convertible securities, or warrants[86] - No Directors or supervisors were granted any share options, warrants, or convertible bonds during the quarter[86] - The Company’s controlling shareholder, Neptunus Bio-engineering, directly holds 70.38% and indirectly holds 3.13% of the Company[81] - Neptunus Bio-engineering holds 1,181,000,000 domestic shares, representing 94.33% of the company's total issued share capital[104] - Shenzhen Neptunus Group Company holds an interest in 1,233,464,500 domestic shares, accounting for 98.52% of the company's total issued share capital[109]

Pharmaceutical Business Development - In 2019, the Group's pharmaceutical business, including Chinese herbal medicine, generic drugs, transfusion, and anti-tumor drugs, was continuously strengthened and developed[15]. - The implementation of the "Healthy China 2030" strategy and government promotion of Chinese medicines provided strong support for the pharmaceutical industry's development[15]. - The Group expanded its medical device business to mitigate the impact of new national medical policies on its pharmaceutical enterprises[16]. - The Group's efforts included broadening the scope for "4+7 procurement with target quantity" and enhancing medical insurance coverage[15]. - The ageing population and increasing public health awareness are driving factors for the robust development of the pharmaceutical industry[15]. - The Group plans to increase investment in quality consistency evaluation and research and development to accelerate the transformation of new drugs from clinical research to applications[21]. - The Group aims to continuously launch new products to enrich the variety and dosage forms of pharmaceutical products, responding to clinical and market needs[21]. - The Group will strengthen its sales team and adopt scientific and flexible marketing strategies to further expand its medical market and sales network[21]. - The Group's business is expected to maintain stable growth, supported by the aging population, increasing health awareness, and the comprehensive implementation of the "Healthy China 2030" strategy[17]. - The regulatory authorities' increasing focus on drug quality and standardized operations is expected to promote the normalization and efficiency of the pharmaceutical industry[20]. Financial Performance - The Group's revenue for the Year was approximately RMB1,080,871,000, representing an increase of approximately 24.65% compared to the previous year[78]. - Revenue from the manufacturing and selling of medicines segment was approximately RMB499,138,000, accounting for approximately 46.18% of total revenue, while revenue from the sales and distribution of medicines and healthcare products was approximately RMB581,733,000, accounting for approximately 53.82%[78]. - The Group's gross profit margin increased to approximately 59%, up by 1 percentage point from the previous year[79]. - The Group's gross profit for the Year was approximately RMB643,038,000, representing an increase of approximately 28.04% compared to the previous year[80]. - Selling and distribution expenses increased by approximately 30.82% to approximately RMB456,599,000 due to overall sales growth[86]. - Administrative expenses rose by approximately 17.27% to approximately RMB65,573,000, primarily due to increased depreciation and labor costs[86]. - Profit after tax increased by approximately 24.18% to approximately RMB63,409,000, with profit attributable to owners rising to approximately RMB59,719,000[86]. Market Challenges - The revision of the Pharmaceutical Administration Law increased operational pressure on pharmaceutical manufacturing enterprises, leading to further shrinkage of profit margins[15]. - The general medicine market faced unprecedented pressure due to pharmaceutical reform policies and environmental requirements[15]. - The implementation of national healthcare reforms, including the expansion of medical insurance coverage and price control measures, has put unprecedented pressure on the pharmaceutical market[17]. Corporate Governance and Management - The company has a strong leadership team with diverse expertise in pharmaceuticals, finance, and corporate management[104]. - The board of directors includes members with significant political and industry experience, enhancing the company's strategic positioning[101]. - The management team emphasizes the importance of understanding national policies related to the pharmaceutical industry to navigate market challenges effectively[119]. - Shenzhen Neptunus is committed to maintaining high standards of corporate governance through its independent board members and committees[120][122]. Shareholder Information - The Company reported an accumulated loss of approximately RMB 96,334,000 as of December 31, 2019[150]. - No dividends were recommended for the year 2019, consistent with 2018[150]. - The Company has a significant concentration of ownership, with major shareholders holding over 70% of the issued share capital, indicating potential influence over corporate decisions[183]. - The report highlights the importance of transparency in shareholder interests and the need for ongoing communication with stakeholders[174]. Connected Transactions - The Group's connected transactions received approval from the Board and were conducted under normal commercial terms[198]. - The transactions involving Neptunus Pharmaceutical and Neptunus Changjian are part of ongoing business operations and are deemed beneficial for the Company[194]. - Neptunus Group is a controlling shareholder of the Company and is considered a connected person under the sales framework agreement[190].

Financial Performance - Revenue for the nine months ended September 30, 2019, increased to RMB 763,892,000, up 22.1% from RMB 625,361,000 in the same period of 2018[13] - Gross profit for the three months ended September 30, 2019, was RMB 177,334,000, representing a 30.4% increase compared to RMB 136,053,000 in the same quarter of 2018[13] - Profit from operations for the nine months ended September 30, 2019, rose to RMB 54,207,000, a 27.5% increase from RMB 42,559,000 in the prior year[13] - Profit before taxation for the three months ended September 30, 2019, was RMB 25,659,000, up 35.5% from RMB 18,939,000 in the same quarter of 2018[15] - Net profit attributable to owners of the Company for the three months ended September 30, 2019, was RMB 17,674,000, an increase of 36.5% compared to RMB 12,970,000 in the same period of 2018[15] - Total comprehensive income for the nine months ended September 30, 2019, was RMB 40,513,000, up 27.4% from RMB 31,772,000 in the same period of 2018[15] - The profit for the period ended 30 September 2019 was RMB 36,226,000, compared to RMB 28,111,000 for the same period in 2018, representing a year-over-year increase of about 28.9%[18] - Basic and diluted earnings per share for the three months ended September 30, 2019, were RMB 1.05 cents, compared to RMB 0.77 cents in the same quarter of 2018[15] Expenses - Selling and distribution expenses for the nine months ended September 30, 2019, increased to RMB 347,353,000, compared to RMB 266,993,000 in the same period of 2018[13] - Administrative expenses for the nine months ended September 30, 2019, were RMB 44,922,000, up from RMB 39,257,000 in the same period of 2018[13] - Other operating expenses for the nine months ended September 30, 2019, were RMB 30,829,000, compared to RMB 29,117,000 in the same period of 2018[13] - Staff costs for the three months ended September 30, 2019, amounted to RMB 26,066,000, an increase of approximately 25.1% from RMB 20,842,000 in 2018[58] - Research and development costs for the nine months ended September 30, 2019, were RMB 287,177,000, compared to RMB 255,594,000 in 2018, marking an increase of approximately 12.3%[58] Equity and Retained Earnings - As of 30 September 2019, total equity reached RMB 837,021,000, an increase from RMB 779,540,000 as of 30 September 2018, reflecting a growth of approximately 7.4%[18] - Retained earnings increased to RMB 151,067,000 as of 30 September 2019, up from RMB 95,191,000 at the end of September 2018, indicating a growth of approximately 58.8%[18] Financial Reporting and Compliance - The financial statements for the nine months ended 30 September 2019 were prepared in accordance with HKAS 34, ensuring compliance with interim financial reporting standards[20] - The company adopted HKFRS 16, which resulted in an adjustment of RMB (524,000) to retained earnings as of 1 January 2019[18] - The Group is currently assessing the impact of new and amended HKFRSs that are not yet effective for the current accounting period[38] Revenue Breakdown - Revenue from manufacturing and selling medicines for the three months ended September 30, 2019, was RMB 134,639,000, an increase from RMB 113,416,000 in the same period of 2018, representing a growth of 18.5%[47] - Revenue from sales and distribution of medicines and healthcare products for the nine months ended September 30, 2019, was RMB 763,892,000, compared to RMB 625,361,000 in 2018, reflecting a year-on-year increase of 22.1%[47] - Revenue from pharmaceutical sales management services for the nine-month period ended September 30, 2019, was approximately RMB 4,318,000, down from RMB 14,336,000 in the same period of 2018[48] Shareholder Information - As of September 30, 2019, Neptunus Bio-engineering held approximately 94.33% of the Company's issued share capital, with 1,181,000,000 shares directly owned[141] - Shenzhen Neptunus Group Company held approximately 98.52% of the Company's issued share capital, totaling 1,233,464,500 shares[145] - The controlling shareholder, Neptunus Bio-engineering, directly held 70.38% of the Company's issued share capital[141] Corporate Governance - The Audit Committee was established on August 21, 2005, to review the Company's annual and quarterly financial reports and provide suggestions to the Board[174] - The Company has complied with the Corporate Governance Code during the Reporting Period, ensuring responsible business operations[176] - The Audit Committee consists of one non-executive Director and two independent non-executive Directors, with Mr. Yick Wing Fat serving as the chairman[178]