[Financial Summary and Key Indicators](index=1&type=section&id=I.%20Major%20Financial%20Data) [Major Accounting Data and Financial Indicators](index=1&type=section&id=Major%20Accounting%20Data%20and%20Financial%20Indicators) In Q1 2022, the company reported **5.16 billion yuan** in revenue and **0.933 billion yuan** in net profit, with core business net profit at **0.327 billion yuan** and total assets at **35.764 billion yuan** Major Accounting Data and Financial Indicators | Indicator | Current Period | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | 5,159,806,246.30 Yuan | 10.48% | | Net Profit Attributable to Parent Company Shareholders | 932,745,003.41 Yuan | 209.95% | | Net Profit Attributable to Parent Company Shareholders (Excluding Non-Recurring Gains/Losses) | 327,337,704.91 Yuan | 20.57% | | Net Cash Flow from Operating Activities | -84,015,437.71 Yuan | 34.97% | | Basic Earnings Per Share (Yuan/share) | 0.58 Yuan | 205.26% | | Weighted Average Return on Net Assets | 6.85% | Increased by 4.25 percentage points | Period-End Financial Indicators | Indicator | End of Current Period | Change from Prior Year-End (%) | | :--- | :--- | :--- | | Total Assets | 35,763,693,756.38 Yuan | 3.66% | | Total Equity Attributable to Parent Company Shareholders | 14,003,005,121.30 Yuan | 6.51% | [Analysis of Non-Recurring Gains and Losses](index=2&type=section&id=Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, total non-recurring gains and losses amounted to **0.605 billion yuan**, a core driver of the significant increase in net profit attributable to parent company shareholders, with the largest item being "Gains/Losses from Disposal of Non-current Assets" at **0.530 billion yuan** Non-Recurring Gains and Losses Items and Amounts | Item | Current Period Amount (Yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 529,616,842.39 | | Government Grants Included in Current Profit/Loss | 60,490,254.26 | | Funds Occupancy Fees Collected from Non-financial Enterprises Included in Current Profit/Loss | 32,249,129.05 | | Net Other Non-operating Income/Expenses, Fair Value Changes, etc. | -2,035,118.97 | | **Total** | **605,407,298.50** | [Explanation of Major Financial Data Changes](index=2&type=section&id=Changes%20and%20Reasons%20for%20Major%20Accounting%20Data%20and%20Financial%20Indicators) Significant changes in key financial indicators this quarter have clear reasons, with net profit and EPS growth primarily due to one-time disposal gains from selling subsidiary equity, and improved operating cash flow attributed to the recovery of **260 million yuan** in intercompany receivables - Net profit attributable to parent company shareholders increased by **209.95%** year-over-year, mainly due to improved profitability of major subsidiaries and a **0.537 billion yuan** disposal gain from the transfer of 24.57% equity in AGIC-HUMANWELL BLUE RIDGE (US) LIMITED by a wholly-owned subsidiary[7](index=7&type=chunk) - Net cash flow from operating activities improved by **34.97%**, primarily due to the company recovering **260 million yuan** in intercompany receivables from Wuhan Kemeilide Biomedical Co., Ltd[7](index=7&type=chunk) [Shareholder Information](index=3&type=section&id=II.%20Shareholder%20Information) [Major Shareholder Holdings](index=3&type=section&id=Total%20Number%20of%20Common%20Shareholders%2C%20Number%20of%20Preferred%20Shareholders%20with%20Restored%20Voting%20Rights%20and%20Shareholding%20of%20Top%20Ten%20Shareholders) As of the end of the reporting period, the company had **62,096 shareholders**, with the largest shareholder, Wuhan Contemporary Science & Technology Industrial Group Co., Ltd., holding **29.64%** of shares, of which approximately **79.9%** (**387 million shares**) are pledged, and institutional investors holding significant positions among the top ten - As of the end of the reporting period, the total number of common shareholders was **62,096**[10](index=10&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Shareholding Ratio (%) | Share Status | Pledged Shares (Shares) | | :--- | :--- | :--- | :--- | | Wuhan Contemporary Science & Technology Industrial Group Co., Ltd. | 29.64 | Pledged | 386,767,393 | | Li Jie | 5.97 | Pledged | 4,192,114 | | National Social Security Fund 113 Portfolio | 4.47 | Unpledged | - | | Shanghai Gaoyi Asset Management Partnership... | 4.16 | Unpledged | - | | Basic Pension Insurance Fund 802 Portfolio | 3.95 | Unpledged | - | [Important Reminders](index=4&type=section&id=III.%20Other%20Reminders) [Operating Related Important Information](index=4&type=section&id=Other%20Important%20Information%20Regarding%20the%20Company%27s%20Operations%20During%20the%20Reporting%20Period) Several significant events occurred during the reporting period, including the full repayment of non-operating fund appropriation by the controlling shareholder, a **1.72%** share reduction due to margin financing default, and the company's plan to sell Tianfeng Securities shares for **2.124 billion yuan** to focus on its core business - Controlling shareholder Contemporary Science & Technology had non-operating appropriation of company funds, which, as of April 15, 2022, has been fully repaid along with interest[12](index=12&type=chunk) - Due to margin financing and securities lending default, controlling shareholder Contemporary Science & Technology was forced to liquidate and reduce its shareholding by **28,116,040 shares**, representing **1.72%** of the company's total share capital[12](index=12&type=chunk) - The company intends to transfer **680 million shares** of Tianfeng Securities to Hubei Hongtai Group Co., Ltd. for a total consideration of **2.124 billion yuan**, a transaction aimed at focusing on its core business[12](index=12&type=chunk) [Quarterly Financial Statements](index=5&type=section&id=IV.%20Quarterly%20Financial%20Statements) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements reflect the overall financial position, operating results, and cash flows of the company and all its subsidiaries for Q1 2022, showing steady growth in total assets and shareholder equity, significantly increased profit due to asset disposal, but still negative operating cash flow [Consolidated Balance Sheet](index=5&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2022, total assets were **35.764 billion yuan** (up 3.66%), equity attributable to parent company shareholders was **14.003 billion yuan** (up 6.51%), total liabilities were **19.235 billion yuan** (debt-to-asset ratio **53.78%**), with accounts receivable and cash and cash equivalents being significant current assets | Item | March 31, 2022 (Yuan) | December 31, 2021 (Yuan) | | :--- | :--- | :--- | | Total Assets | 35,763,693,756.38 | 34,501,425,418.62 | | Total Liabilities | 19,235,247,776.00 | 18,851,505,790.95 | | Total Equity Attributable to Parent Company Shareholders | 14,003,005,121.30 | 13,146,975,163.77 | | Total Shareholders' Equity | 16,528,445,980.38 | 15,649,919,627.67 | [Consolidated Income Statement](index=7&type=section&id=Consolidated%20Income%20Statement) In Q1 2022, total operating revenue reached **5.16 billion yuan** (up 10.48%), operating profit was **1.167 billion yuan** (up 129.09%), and net profit attributable to parent company shareholders was **0.933 billion yuan** (up 209.95%), primarily driven by a substantial increase in investment income | Item | Q1 2022 (Yuan) | Q1 2021 (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 5,159,806,246.30 | 4,670,267,382.06 | | Operating Profit | 1,166,586,017.31 | 509,203,884.49 | | Total Profit | 1,158,011,355.21 | 499,982,558.74 | | Net Profit | 1,030,243,011.37 | 406,522,004.11 | | Net Profit Attributable to Parent Company Shareholders | 932,745,003.41 | 300,937,105.39 | - Investment income significantly increased from **18.2 million yuan** in the prior-year period to **0.576 billion yuan**, a key factor driving operating profit growth[17](index=17&type=chunk) [Consolidated Cash Flow Statement](index=10&type=section&id=Consolidated%20Cash%20Flow%20Statement) In Q1 2022, net cash flow from operating activities was **-0.084 billion yuan** (an improvement), net cash outflow from investing activities was **1.635 billion yuan**, net cash inflow from financing activities was **0.169 billion yuan**, and cash and cash equivalents decreased by **1.556 billion yuan** | Item | Q1 2022 (Yuan) | Q1 2021 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -84,015,437.71 | -129,203,041.41 | | Net Cash Flow from Investing Activities | -1,635,479,264.91 | -366,036,442.90 | | Net Cash Flow from Financing Activities | 168,538,295.09 | 79,251,689.69 | | Net Increase in Cash and Cash Equivalents | -1,556,095,220.64 | -417,479,604.84 | [Parent Company Financial Statements](index=11&type=section&id=Parent%20Company%20Financial%20Statements) The parent company's statements reflect its financial position as a holding platform, with assets primarily long-term equity investments and profits from investment income, achieving a turnaround to profit this period despite significant operating cash outflow [Parent Company Balance Sheet](index=11&type=section&id=Parent%20Company%20Balance%20Sheet) As of March 31, 2022, the parent company's total assets were **20.926 billion yuan** and total liabilities were **10.152 billion yuan**, with assets primarily comprising long-term equity investments (**12.633 billion yuan**) and other receivables (**6.077 billion yuan**), highlighting its holding company function | Item | March 31, 2022 (Yuan) | December 31, 2021 (Yuan) | | :--- | :--- | :--- | | Total Assets | 20,926,381,328.18 | 20,691,743,142.32 | | Total Liabilities | 10,151,683,962.27 | 9,977,021,513.75 | | Total Shareholders' Equity | 10,774,697,365.91 | 10,714,721,628.57 | - In the parent company's asset structure, long-term equity investments (**12.633 billion yuan**) and other receivables (**6.077 billion yuan**) collectively account for **89.4%** of total assets, reflecting its function as a holding company[21](index=21&type=chunk) [Parent Company Income Statement](index=14&type=section&id=Parent%20Company%20Income%20Statement) In Q1 2022, the parent company achieved a net profit of **46.13 million yuan**, turning around from a prior-year loss, primarily due to increased investment income and the reversal of credit impairment losses | Item | Q1 2022 (Yuan) | Q1 2021 (Yuan) | | :--- | :--- | :--- | | Operating Profit | 45,995,209.15 | -92,205,064.62 | | Net Profit | 46,129,512.82 | -93,449,200.28 | | Total Comprehensive Income | 40,697,906.97 | -96,240,067.66 | [Parent Company Cash Flow Statement](index=15&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In Q1 2022, the parent company's net cash flow from operating activities was **-0.957 billion yuan** (a large outflow), with net cash inflow from investing activities at **0.040 billion yuan** and net cash outflow from financing activities at **0.011 billion yuan** | Item | Q1 2022 (Yuan) | Q1 2021 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -956,933,116.45 | -389,929,477.34 | | Net Cash Flow from Investing Activities | 39,986,812.32 | 54,540,767.43 | | Net Cash Flow from Financing Activities | -10,680,989.20 | 205,865,115.06 |

Financial Performance - The company's operating revenue for the first half of 2020 was approximately RMB 9.66 billion, a decrease of 8.23% compared to the same period last year[21]. - The net profit attributable to shareholders for the first half of 2020 was approximately RMB 392.24 million, an increase of 16.56% year-on-year[21]. - The basic earnings per share for the first half of 2020 was RMB 0.29, representing a growth of 31.82% compared to RMB 0.22 in the same period last year[20]. - The net cash flow from operating activities decreased by 61.25%, amounting to approximately RMB 200.21 million, due to delayed sales and slower collection of receivables[21]. - The total assets as of the end of the reporting period increased by 3.66% to approximately RMB 36.30 billion compared to the end of the previous year[21]. - The net assets attributable to shareholders decreased by 2.79% to approximately RMB 9.87 billion compared to the end of the previous year[21]. - The weighted average return on equity increased by 1.27 percentage points to 3.94% compared to the same period last year[20]. - The company reported a decrease in the net profit after deducting non-recurring gains and losses, which was approximately RMB 373.06 million, an increase of 14.20% year-on-year[21]. Cash Flow and Investments - The net cash flow from investment activities decreased by 69.95% year-on-year, mainly due to the company's participation in Tianfeng Securities' share placement, with subscription payments of approximately 675 million yuan[47]. - Net cash flow from financing activities increased by 2,475.46% year-on-year, primarily due to a significant increase in net financing during the reporting period[47]. - The total amount of investments during the reporting period was 1,013.53 million yuan, representing an increase of 436.81% compared to the same period last year[53]. - The company issued epidemic prevention bonds, raising 950 million yuan to support liquidity during the pandemic[49]. Market and Product Development - The company holds 580 drug production licenses, with 41 exclusive product specifications and 282 products included in the national medical insurance directory[27]. - The company aims to enhance its core product development capabilities and improve risk management and production operations[31]. - The company has a strong focus on R&D innovation and international expansion, particularly in mature markets like Europe and North America, as well as emerging markets in Africa and Southeast Asia[32]. - The company has established a nationwide market system, serving over 20,000 medical institutions across 31 provinces and cities in China[36]. - The company plans to enhance market access by increasing the number of products in the basic medical insurance catalog and obtaining procurement qualifications[69]. Environmental and Social Responsibility - The company has established a strong commitment to social responsibility, aligning its development with community support initiatives[93]. - The company invested RMB 27.03 million in poverty alleviation projects, focusing on infrastructure and health initiatives[90]. - The company has actively engaged in educational support for impoverished students, investing RMB 6.00 million in this area[91]. - The company’s environmental protection measures are in compliance with national standards, with no exceedances reported in pollutant emissions[95]. - The company emphasizes environmental protection and has established comprehensive environmental management systems to enhance awareness among employees[99]. Risk Management - The company faced risks related to the COVID-19 pandemic, affecting product sales and cash flow[21]. - The company is exposed to foreign exchange risks due to its global market presence, particularly fluctuations in the RMB against the USD[72]. - The company faces risks related to environmental regulations and is focused on upgrading its environmental protection capabilities to mitigate these risks[72]. Corporate Governance - The company has no major litigation or arbitration matters during the reporting period[81]. - The company has renewed its audit service contract with Da Xin Accounting Firm for the 2020 annual audit[81]. - The company has no significant related party transactions during the reporting period[83]. - The company has committed to not reducing its holdings in Renfu Pharmaceutical for 36 months following the completion of a non-public offering[78]. Financial Structure and Shareholder Information - The largest shareholder, Wuhan Contemporary Science and Technology Industry Group, holds 29.26% of the shares, with 67,655,240 shares pledged[119]. - The company reported no significant changes in its share capital structure during the reporting period[116]. - The company has a total of 396,079,114 shares held by its largest shareholder, indicating a stable ownership structure[119]. - The company’s long-term credit rating is AA+, with the same rating for the corporate bonds issued, indicating a stable outlook[133]. Future Outlook - The company anticipates significant industry changes due to deepening medical reforms, which may lead to intensified competition and a decline in drug prices[68]. - The company plans to focus on restructuring and cost management strategies to improve future financial performance[171]. - Future outlook remains cautiously optimistic, with a focus on maintaining equity levels and managing comprehensive income effectively[170].