Group 1 - The core point of the news is that Tai Long Pharmaceutical (600222) has seen a net financing inflow of 680.54 million yuan on September 1, 2025, with a total financing balance of 3.2 billion yuan, indicating a positive investor sentiment towards the stock [1][2][3] - In the last three trading days, the cumulative net financing inflow reached 1,768.29 million yuan, and in the last 20 trading days, there were 12 days with net financing inflows [1][2] - The financing balance increased by 2.18% compared to the previous day, reflecting a bullish market sentiment [3] Group 2 - On September 1, 2025, the financing balance was 3.20 billion yuan, which accounted for 7.90% of the circulating market value [2] - The financing inflow on August 29 was 176.14 million yuan, and on August 28, it was 911.61 million yuan, indicating consistent investor interest [2] - The financing balance has shown fluctuations, with a decrease of 754.86 million yuan on August 27, highlighting the volatility in investor behavior [2][3]

Market Overview - The Chinese medicine sector rose by 0.75% on September 1, with Zhendong Pharmaceutical leading the gains [1] - The Shanghai Composite Index closed at 3875.53, up 0.46%, while the Shenzhen Component Index closed at 12828.95, up 1.05% [1] Top Gainers in Chinese Medicine Sector - Zhendong Pharmaceutical (300158) closed at 9.21, up 6.11% with a trading volume of 1.2136 million shares and a turnover of 1.101 billion yuan [1] - Qidi Pharmaceutical (000590) closed at 12.33, up 4.14% with a trading volume of 140,800 shares and a turnover of 174 million yuan [1] - Kangmei Pharmaceutical (600518) closed at 2.12, up 3.92% with a trading volume of 5.5195 million shares and a turnover of 1.165 billion yuan [1] Top Losers in Chinese Medicine Sector - Tianmu Pharmaceutical (600671) closed at 19.44, down 1.87% with a trading volume of 86,000 shares and a turnover of 170 million yuan [2] - Jilin Aodong (000623) closed at 20.13, down 1.66% with a trading volume of 284,000 shares and a turnover of 573 million yuan [2] - *ST Changyao (300391) closed at 4.19, down 1.64% with a trading volume of 86,000 shares and a turnover of 36.1 million yuan [2] Capital Flow Analysis - The Chinese medicine sector experienced a net outflow of 29.7085 million yuan from institutional investors, while retail investors saw a net inflow of 253 million yuan [2][3] - Notable net inflows from retail investors were observed in Yunnan Baiyao (000538) with 436.788 million yuan and in Zhongsheng Pharmaceutical (002317) with 82.0845 million yuan [3] Individual Stock Capital Flow - Yunnan Baiyao (000538) had a net inflow of 188 million yuan from institutional investors, but a net outflow of 144 million yuan from speculative funds [3] - Zhongsheng Pharmaceutical (002317) saw a net inflow of 54.7945 million yuan from institutional investors, while retail investors experienced a net outflow of 82.0845 million yuan [3] - Dong'e Ejiao (000423) had a net inflow of 53.6307 million yuan from institutional investors, with a net outflow of 40.1030 million yuan from speculative funds [3]

Core Points - Tai Long Pharmaceutical announced the election of Mr. Wang Rongtao as the chairman of the 10th board of directors on August 15, 2025 [1] - The company completed the registration procedures for the change of legal representative on August 27, 2025, and obtained a new business license from the Henan Provincial Market Supervision Administration [1]

河南太龙药业股份有限公司 关于召开 2025 年半年度业绩说明会的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 会议召开时间：2025 年 9 月 17 日(星期三)11:00-12:00 会议召开地点：上海证券交易所上证路演中心（网址： https://roadshow.sseinfo.com/） 会议召开方式：上证路演中心网络互动 证券代码：600222 证券简称：太龙药业 公告编号：临 2025-045 三、 参加人员 参加本次业绩说明会的人员如下：董事长、独立董事、财务负责 人、董事会秘书（如有特殊情况，参会人员可能进行调整）。 四、 投资者参加方式 （一）投资者可在 2025 年 09 月 17 日（星期三）11:00-12:00， 通过互联网登录上证路演中心（https://roadshow.sseinfo.com/）， 在线参与本次业绩说明会，公司将及时回答投资者的提问。 投资者可于 2025 年 09 月 10 日（星期三）至 09 月 16 日（星 期二）16:00 期间登录上证路演中 ...

证券代码：600222 证券简称：太龙药业 公告编号：临 2025-044 河南太龙药业股份有限公司 关于完成法定代表人工商变更登记的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 法定代表人：王荣涛 注册资本：伍亿柒仟叁佰捌拾捌万陆仟贰佰捌拾叁圆整 证券代码：600222 证券简称：太龙药业 公告编号：临 2025-044 河南太龙药业股份有限公司（以下简称"公司"）于 2025 年 8 月 15 日召开第十届董事会第一次会议，审议通过了《关于选举公司 第十届董事会董事长的议案》，选举王荣涛先生为公司第十届董事会 董事长。具体内容详见公司在上海证券交易所网站（www.sse.com.cn） 披露的《太龙药业第十届董事会第一次会议决议公告》（公告编号： 临 2025-042）。 根据《公司章程》规定，董事长为公司法定代表人，王荣涛先生 自第十届董事会第一次会议审议通过之日起担任公司法定代表人。 2025 年 8 月 27 日，公司完成法定代表人的工商变更登记手续， 并取得河南省市场监督管理局换发的《营业执照》，相关登记信 ...

Core Viewpoint - Tai Long Pharmaceutical (600222) reported a decline in net profit by 27.32% year-on-year for the first half of 2025, with total revenue decreasing by 17.77% to 762 million yuan [1] Financial Performance - Total revenue for the first half of 2025 was 762 million yuan, down 17.77% from 927 million yuan in 2024 [1] - Net profit attributable to shareholders was 19.35 million yuan, a decrease of 27.32% from 26.62 million yuan in the previous year [1] - The gross profit margin was 24.69%, a decrease of 12.3% year-on-year, while the net profit margin increased by 5.6% to 2.96% [1] - The company reported a quarterly revenue of 439 million yuan in Q2 2025, showing a year-on-year increase of 2.57%, and a net profit of 17.82 million yuan, up 232.43% [1] Cost and Expense Analysis - Total selling, administrative, and financial expenses amounted to 144 million yuan, accounting for 18.87% of revenue, a decrease of 4.14% year-on-year [1] - Operating costs decreased by 13.81%, attributed to the decline in sales revenue [12] - Selling expenses decreased by 32.81% due to adjustments in the sales system and optimization of marketing strategies [12] - Management expenses decreased by 12.96% as the company continued to enhance lean management [12] Cash Flow and Financial Position - Cash flow from operating activities showed a net decrease of 21.46%, primarily due to declining revenue and cash receipts from sales [13] - The company’s cash and cash equivalents decreased by 25.13% to 244 million yuan [1] - The company’s receivables increased by 14.90% to 935.4 million yuan [1] - The company’s interest-bearing liabilities increased by 27.05% to 1.158 billion yuan [1] Investment and Debt Analysis - The company’s long-term borrowings increased significantly by 10,665.41%, indicating a restructuring of debt [10] - The ratio of cash to current liabilities was only 17.44%, raising concerns about liquidity [18] - The company’s debt-to-asset ratio for interest-bearing liabilities reached 32.37% [18] Business Model and Market Position - The company’s return on invested capital (ROIC) was reported at 4.29%, indicating weak capital returns over the years [16] - The business model relies heavily on research and marketing, necessitating a thorough examination of these driving factors [17] - Historical performance shows a median ROIC of 3% over the past decade, with two years of losses since its listing, suggesting a fragile business model [16]

Core Viewpoint - Tai Long Pharmaceutical demonstrates strong operational resilience in a complex environment, focusing on enhancing its core businesses and sustainable development capabilities, laying a solid foundation for long-term high-quality growth [1] Financial Performance - In the first half of 2025, Tai Long Pharmaceutical achieved operating revenue of 762 million yuan, with a total profit of 24.36 million yuan, representing a year-on-year increase of 11.94%, and a net profit attributable to shareholders of 19.35 million yuan [2] - The company's net assets reached 1.6 billion yuan, up 1.63% from the end of the previous year, while total assets grew by 2.56% to 3.579 billion yuan, indicating steady asset expansion [2] - Sales and management expenses decreased by 32.81% and 12.96% respectively, showcasing effective cost control that supports profit margins [2] - The gross profit margin of the traditional Chinese medicine segment increased by 2.18 percentage points, contributing to further net profit growth [2] Business Segments - Tai Long Pharmaceutical operates four core business segments: pharmaceutical formulations, traditional Chinese medicine pieces, pharmaceutical research services, and drug and material circulation, creating a comprehensive "R&D-production-circulation" advantage [3] - The pharmaceutical formulation segment, led by "Shuanghuanglian Oral Liquid," covers multiple therapeutic areas and has successfully participated in national procurement, enhancing competitive barriers [3] - The subsidiary Tongjun Tang has secured procurement supply in key regions and is actively expanding into the "Chinese medicine +" and "food-medicine homology" markets [3] - The subsidiary Beijing New Leading has made breakthroughs in high-end formulations and innovative drug R&D, adding numerous registration applications and production approvals [3] Growth Drivers - The drug and material circulation business saw a revenue increase of 113.87% year-on-year, with a gross profit margin improvement of 1.94 percentage points, becoming a new growth engine for the company [4] - The company emphasizes innovation and industry chain extension as core drivers for long-term development, with significant investments in high-value sectors such as biomedicine and medical devices [5] - Tai Long Pharmaceutical is well-positioned to benefit from structural opportunities in the industry due to its comprehensive industry chain layout, exclusive product advantages, and R&D service capabilities [5]

Group 1 - The company reported a revenue of 762 million yuan for the first half of 2025, representing a year-on-year decrease of 17.77% [1] - The net profit attributable to the parent company was 19.35 million yuan, down 27.32% year-on-year [1] - The net profit after deducting non-recurring items was 15.19 million yuan, reflecting a year-on-year decline of 40.64% [1] - The basic earnings per share were 0.0350 yuan [1]

Core Viewpoint - Tai Long Pharmaceutical (600222) reported a decline in both revenue and net profit for the first half of 2025, indicating challenges in its drug formulation business and increased production costs [1] Financial Performance - The company achieved a revenue of 762 million yuan, a year-on-year decrease of 17.77% [1] - The net profit attributable to shareholders was 19.35 million yuan, down 27.32% year-on-year [1] - Basic earnings per share were reported at 0.035 yuan [1] Business Operations - The decline in sales was attributed to the company's main products participating in the national Chinese medicine procurement, with uneven progress in regulatory approvals across provinces [1] - The decrease in sales led to unbalanced production, resulting in increased unit production costs and a decline in gross profit margin [1] - The rise in income tax expenses and changes in minority shareholder profits also contributed to the year-on-year decline in net profit [1]

[Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) The report defines common terms such as CSRC, SSE, Tailong Pharmaceutical, its controlling shareholders, and major subsidiaries - The report defines terms like CSRC, SSE, Tailong Pharmaceutical, its controlling shareholders (Tairong Industrial Investment, Zhongsheng Industrial, Gaoxin Investment Control), and major subsidiaries (Xinlingxian, Tongjuntang)[13](index=13&type=chunk) - The reporting period is from **January 1, 2025, to June 30, 2025**[13](index=13&type=chunk) [Section II Company Profile and Key Financial Indicators](index=5&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides the company's basic information, contact details, stock overview, and key financial data for the reporting period [Company Basic Information](index=5&type=section&id=I.%20Company%20Basic%20Information) Discloses the company's Chinese name, abbreviation, foreign name, legal representative, and other basic information - Company's Chinese name is Henan Tailong Pharmaceutical Co., Ltd., legal representative is Yin Hui[16](index=16&type=chunk) [Contact Person and Information](index=5&type=section&id=II.%20Contact%20Person%20and%20Information) Provides names, addresses, phone numbers, faxes, and email addresses for the company's Board Secretary and Securities Affairs Representative - Board Secretary is Li Nianyun, Securities Affairs Representative is Wu Ting, contact number is **0371-67982194**[17](index=17&type=chunk) [Brief Introduction to Changes in Basic Information](index=5&type=section&id=III.%20Brief%20Introduction%20to%20Changes%20in%20Basic%20Information) The company's registered address, office address, website, and email address remained unchanged during the reporting period - Company's registered and office address is No. 8 Jinsuo Road, High-tech Industrial Development Zone, Zhengzhou City, Henan Province, with no changes during the reporting period[18](index=18&type=chunk) [Brief Introduction to Changes in Information Disclosure and Document Storage Locations](index=5&type=section&id=IV.%20Brief%20Introduction%20to%20Changes%20in%20Information%20Disclosure%20and%20Document%20Storage%20Locations) Specifies the company's chosen newspapers for information disclosure, website for semi-annual reports, and report storage locations, with no changes during the reporting period - Company's information disclosure newspapers are "Shanghai Securities News" and "China Securities Journal", website is www.sse.com.cn[19](index=19&type=chunk) [Company Stock Profile](index=5&type=section&id=V.%20Company%20Stock%20Profile) Introduces the listing exchange, stock abbreviation, and stock code for the company's A-shares - Company's A-shares are listed on the Shanghai Stock Exchange, stock abbreviation is "Tailong Pharmaceutical", stock code is "**600222**"[20](index=20&type=chunk) [Company's Key Accounting Data and Financial Indicators](index=6&type=section&id=VII.%20Company%27s%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Discloses the company's key accounting data and financial indicators for the current reporting period (Jan-Jun), explaining declines in operating revenue and net profit attributable to shareholders 2025 Semi-Annual Key Accounting Data | Indicator | Current Reporting Period (Jan-Jun) (yuan) | Prior Year Period (yuan) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 762,431,550.01 | 927,248,514.93 | -17.77 | | Total Profit | 24,358,725.70 | 21,761,268.60 | 11.94 | | Net Profit Attributable to Parent Company Shareholders | 19,346,600.25 | 26,617,997.43 | -27.32 | | Net Profit Attributable to Parent Company Shareholders (Excluding Non-recurring Gains/Losses) | 15,194,442.43 | 25,595,171.58 | -40.64 | | Net Cash Flow from Operating Activities | -111,681,634.10 | -91,951,749.06 | Not Applicable | | Net Assets Attributable to Parent Company Shareholders (Period-end) | 1,600,355,674.27 | 1,574,728,869.80 | 1.63 | | Total Assets (Period-end) | 3,579,032,630.35 | 3,489,768,020.93 | 2.56 | 2025 Semi-Annual Key Financial Indicators | Indicator | Current Reporting Period (Jan-Jun) | Prior Year Period | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.0350 | 0.0477 | -26.62 | | Diluted Earnings Per Share (yuan/share) | 0.0350 | 0.0477 | -26.62 | | Basic Earnings Per Share (Excluding Non-recurring Gains/Losses) (yuan/share) | 0.0275 | 0.0459 | -40.09 | | Weighted Average Return on Net Assets (%) | 1.22 | 1.68 | Decrease of 0.46 percentage points | | Weighted Average Return on Net Assets (Excluding Non-recurring Gains/Losses) (%) | 0.96 | 1.61 | Decrease of 0.65 percentage points | - Operating revenue decreased by **17.77%** year-on-year, primarily due to varying progress in centralized procurement of traditional Chinese medicine and reduced sales shipments[24](index=24&type=chunk) - Net profit attributable to parent company decreased by **27.32%** year-on-year, mainly due to increased income tax expenses across business segments and changes in minority shareholder profits and losses[24](index=24&type=chunk) [Non-recurring Gains and Losses Items and Amounts](index=7&type=section&id=IX.%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Lists non-recurring gains and losses items and their amounts for the current reporting period, totaling **4,152,157.82 yuan** 2025 Semi-Annual Non-recurring Gains and Losses Items and Amounts | Non-recurring Gains and Losses Item | Amount (yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets | -73,320.16 | | Government grants recognized in current profit or loss | 4,181,283.31 | | Fair value changes and disposal gains/losses from financial assets and liabilities held by non-financial enterprises | 1,451,657.50 | | Other non-operating income and expenses apart from the above | -65,170.45 | | Other gains and losses meeting the definition of non-recurring gains and losses | -292,295.91 | | Less: Income tax impact | 780,874.02 | | Minority shareholder equity impact (after tax) | 269,122.45 | | **Total** | **4,152,157.82** | [Section III Management Discussion and Analysis](index=8&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) This section analyzes the company's industry, business operations, core competitiveness, and financial performance, along with identified risks and mitigation strategies [Description of the Company's Industry and Main Business Operations during the Reporting Period](index=8&type=section&id=I.%20Description%20of%20the%20Company%27s%20Industry%20and%20Main%20Business%20Operations%20during%20the%20Reporting%20Period) Details the company's main businesses (pharmaceutical manufacturing, R&D services, traditional Chinese medicine decoction pieces, pharmaceutical distribution) and products, operating model, industry development, and market position - Company's main businesses are pharmaceutical manufacturing and pharmaceutical R&D services, specifically including pharmaceutical preparations, traditional Chinese medicine decoction pieces, pharmaceutical R&D services, and pharmaceutical and medicinal material distribution[28](index=28&type=chunk) - Pharmaceutical preparation business primarily focuses on oral traditional Chinese medicine preparations, covering respiratory, cardiovascular, and digestive systems, with key products including Shuanghuanglian Oral Liquid series and Shuangjinlian Compound Liquid, some of which are exclusive products/dosages[28](index=28&type=chunk)[29](index=29&type=chunk) - Traditional Chinese medicine decoction pieces business is conducted by wholly-owned subsidiary Tongjuntang, managing over **700 varieties** and **1100 specifications**, also providing intelligent decoction services[31](index=31&type=chunk) - Pharmaceutical R&D services are provided by subsidiary Beijing Xinlingxian, offering professional technical services for the entire drug development process, including preclinical pharmaceutical research, clinical CRO research, and registration application[32](index=32&type=chunk) - The pharmaceutical industry is characterized by weak cyclicality, high investment, high risk, high technical barriers, and strong regulation; from January to June 2025, operating revenue of pharmaceutical manufacturing enterprises above designated size decreased by **1.2%** year-on-year, and total profit decreased by **2.8%**[39](index=39&type=chunk) - The company was listed in the China Association of Traditional Chinese Medicine's "2023 Top 100 Traditional Chinese Medicine Industrial Enterprises" list, and its core product Shuanghuanglian Oral Liquid has been repeatedly recommended in major epidemic treatment plans[42](index=42&type=chunk) [Discussion and Analysis of Operating Performance](index=14&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operating%20Performance) Operating revenue decreased by **17.77%** and net profit attributable to parent company decreased by **27.32%** year-on-year, mainly due to centralized procurement of traditional Chinese medicine and increased income tax expenses; The company actively addresses market challenges by optimizing marketing, strengthening supply chain management, enhancing R&D services, and expanding traditional Chinese medicine planting bases - From January to June 2025, the company achieved operating revenue of **762 million yuan**, a year-on-year decrease of **17.77%**; net profit attributable to shareholders of **19.3466 million yuan**, a year-on-year decrease of **27.32%**[43](index=43&type=chunk) - Pharmaceutical preparation business optimized its marketing system, focusing on "Shuanghuanglian Oral Liquid" to strengthen its presence in grassroots medical terminals, top 100 chain pharmacies, and online e-commerce channels[44](index=44&type=chunk) - Traditional Chinese medicine decoction pieces business achieved increased gross profit margin and further improved net profit compared to the previous year by building a traceability system, intelligent production upgrades, and optimizing customer structure[45](index=45&type=chunk) - Pharmaceutical R&D services consolidated advantages in generic drug development and expanded traditional Chinese medicine projects in pharmaceutical research; clinical business covers various target biologics, chemical drugs, and traditional Chinese medicine, with **19 new registration applications** and **25 drug production approvals** added during the reporting period[46](index=46&type=chunk)[47](index=47&type=chunk) - The company established over **70 standardized traditional Chinese medicine planting/breeding bases** in authentic medicinal material producing areas such as Henan, Shandong, and Zhejiang, vigorously promoting the construction of a traceability system for traditional Chinese medicine[47](index=47&type=chunk) - In investment business, the company participated in over **50 fund-invested projects**, covering biomedicine, medical devices, and general health, with **27.6827 million yuan** of funds recovered from previous investment projects during the reporting period[50](index=50&type=chunk) [Analysis of Core Competitiveness during the Reporting Period](index=17&type=section&id=III.%20Analysis%20of%20Core%20Competitiveness%20during%20the%20Reporting%20Period) The company's core competitiveness lies in its brand advantage ("Tailong TAILONG" China Well-known Trademark, "Tongjuntang" Chinese Time-honored Brand), product advantage (core products in multiple therapeutic areas, exclusive products), quality advantage (GAP standard planting, GMP standard production, CNAS certified testing center), and technology and talent advantage (National High-tech Enterprise, Post-doctoral Research Workstation, experienced R&D team) - "Tailong TAILONG" is a China Well-known Trademark, and the company's products are highly recognized by the market; Tailong brand Shuanghuanglian Oral Liquid has been repeatedly rated as the "Most Recommended Brand by Pharmacy Staff (Cold Medicine Category)"[52](index=52&type=chunk) - The company's main product lines cover multiple therapeutic areas such as respiratory, cardiovascular, and digestive systems; the core product Shuanghuanglian Oral Liquid has been included in the "National Essential Drug List" for many years[53](index=53&type=chunk) - The company adheres to the "quality construction" concept, establishing standardized planting bases according to GAP standards, strictly implementing GMP standards in production, and achieving a **100% pass rate** in external spot checks of produced and sold drugs[55](index=55&type=chunk) - The company is a National Torch Program Key High-tech Enterprise certified by the Ministry of Science and Technology, has established a Post-doctoral Research Workstation approved by the Ministry of Human Resources and Social Security, and possesses high-end management talent and an R&D team with extensive industry experience[56](index=56&type=chunk) [Main Operating Performance during the Reporting Period](index=18&type=section&id=IV.%20Main%20Operating%20Performance%20during%20the%20Reporting%20Period) Analyzes the reasons for changes in financial statement items across business segments, including operating revenue, costs, selling expenses, administrative expenses, R&D expenses, net cash flow, and explains the impact of non-core businesses on profit and the asset-liability situation Financial Statement Related Item Fluctuation Analysis | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 762,431,550.01 | 927,248,514.93 | -17.77 | | Operating Cost | 574,172,789.53 | 666,192,208.30 | -13.81 | | Selling Expenses | 57,991,234.75 | 86,314,744.64 | -32.81 | | Administrative Expenses | 59,052,299.36 | 67,846,193.37 | -12.96 | | Financial Expenses | 26,821,950.51 | 28,356,037.50 | -5.41 | | R&D Expenses | 25,905,142.62 | 60,152,217.93 | -56.93 | | Net Cash Flow from Operating Activities | -111,681,634.10 | -91,951,749.06 | Not Applicable | | Net Cash Flow from Investing Activities | 90,711,591.51 | 95,542,622.53 | -5.06 | | Net Cash Flow from Financing Activities | 95,560,568.00 | 105,133,781.60 | -9.11 | - Operating revenue decreased mainly due to successful bids in centralized procurement of traditional Chinese medicine, with varying implementation progress across provinces leading to reduced sales shipments[58](index=58&type=chunk) - Selling expenses, administrative expenses, and R&D expenses all decreased year-on-year, reflecting the company's strategy of adjusting its sales system, strengthening lean management, and focusing R&D resources[58](index=58&type=chunk)[59](index=59&type=chunk) Main Business by Industry Segment | Industry Segment | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Profit Margin (%) | Year-on-Year Change in Operating Revenue (%) | Year-on-Year Change in Operating Cost (%) | Year-on-Year Change in Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Pharmaceutical Manufacturing | 538,222,890.00 | 407,197,465.15 | 24.34 | -25.66 | -22.94 | -2.68 | | Pharmaceutical R&D Services | 112,164,235.54 | 73,066,709.41 | 34.86 | -24.67 | -21.05 | -2.98 | | Pharmaceutical and Medicinal Material Distribution | 109,928,761.89 | 92,962,278.40 | 15.43 | 113.87 | 109.08 | 1.94 | | **Total** | **760,315,887.43** | **573,226,452.96** | **24.61** | **-17.74** | **-13.85** | **-3.40** | - Operating revenue and gross profit margin for pharmaceutical manufacturing and R&D services both decreased, while pharmaceutical and medicinal material distribution business achieved growth in both revenue and gross profit margin[61](index=61&type=chunk) Major Restricted Assets at Period-End | Item | Book Value at Period-End (yuan) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 25,146,899.98 | Acceptance deposits, etc | | Fixed Assets | 109,048,362.83 | Pledged for borrowings | | Intangible Assets | 30,770,412.17 | Pledged for borrowings | | **Total** | **164,965,674.98** | | [Other Disclosure Matters](index=25&type=section&id=V.%20Other%20Disclosure%20Matters) Discloses potential risks including industry policy, quality, raw material prices and supply, R&D, accounts receivable, and external investment risks, along with corresponding mitigation measures - The pharmaceutical industry is highly policy-driven, and the company will closely monitor changes in industrial policies and regulations to adjust its operating strategies in a timely manner[75](index=75&type=chunk) - Drug quality risk spans the entire process from raw material procurement to production, processing, and patient use; the company will fully comply with GMP regulations, strengthen drug source design management, and build a comprehensive traceability system[75](index=75&type=chunk)[76](index=76&type=chunk) - Prices and yields of traditional Chinese medicine are susceptible to external factors such as natural conditions and economic environment; the company will closely monitor price trends and coordinate reasonable inventory and procurement cycles[76](index=76&type=chunk)[77](index=77&type=chunk) - Drug R&D is characterized by high investment, long cycles, high risk, and strict regulation; the company will continuously strengthen R&D team building, enhance technical R&D capabilities, and prudently select R&D projects[77](index=77&type=chunk)[78](index=78&type=chunk) - Increased accounts receivable risk will be managed by continuously adjusting the structure of medical customers and strengthening accounts receivable and aging control[78](index=78&type=chunk) - External investment projects are subject to macroeconomic and industry policy influences, leading to uncertainty in investment returns; the company will closely monitor changes in the external environment and urge fund managers to strengthen post-investment management[79](index=79&type=chunk) [Section IV Corporate Governance, Environment, and Society](index=27&type=section&id=Section%20IV%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This section covers changes in the company's directors and senior management, profit distribution plans, employee incentive schemes, environmental information disclosure, and contributions to rural revitalization [Changes in Company Directors and Senior Management](index=27&type=section&id=I.%20Changes%20in%20Company%20Directors%20and%20Senior%20Management) During the reporting period, the company's board of directors and senior management changed, with Mr. Wang Rongtao elected as Chairman and Mr. Li Jingliang as General Manager; the supervisory board was abolished, and its functions are now exercised by the Board's Audit Committee - Mr. Wang Rongtao was elected as the Chairman of the company's Tenth Board of Directors, and Mr. Li Jingliang was appointed as the company's General Manager[82](index=82&type=chunk)[83](index=83&type=chunk) - The company abolished the supervisory board, and its functions are now exercised by the Board's Audit Committee[82](index=82&type=chunk) [Profit Distribution or Capital Reserve Conversion Plan](index=27&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) The company's proposed semi-annual profit distribution or capital reserve conversion plan is "none", with no distribution or conversion - The company will not distribute profits or convert capital reserves in the semi-annual period[84](index=84&type=chunk) [Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=28&type=section&id=III.%20Status%20and%20Impact%20of%20Company%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) The company's third employee stock ownership plan completed transfer in November 2022, with a 12-month lock-up period, and its duration was extended to November 22, 2025; The company plans to implement a fourth employee stock ownership plan - The company's third employee stock ownership plan holds **6,265,207 shares**, with its duration extended to **November 22, 2025**[85](index=85&type=chunk) - The company plans to implement a fourth employee stock ownership plan[85](index=85&type=chunk) [Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=28&type=section&id=IV.%20Environmental%20Information%20of%20Listed%20Companies%20and%20Their%20Major%20Subsidiaries%20Included%20in%20the%20List%20of%20Enterprises%20Required%20to%20Disclose%20Environmental%20Information%20by%20Law) Henan Tailong Pharmaceutical Co., Ltd. is included in the list of enterprises required to disclose environmental information by law, and an index for its environmental information disclosure report is provided - Henan Tailong Pharmaceutical Co., Ltd. is included in the list of enterprises required to disclose environmental information by law, and an index for its environmental information disclosure report is provided[87](index=87&type=chunk) [Specific Situation of Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, and Other Work](index=28&type=section&id=V.%20Specific%20Situation%20of%20Consolidating%20and%20Expanding%20Poverty%20Alleviation%20Achievements%2C%20Rural%20Revitalization%2C%20and%20Other%20Work) The company invested a total of **524,600 yuan**, benefiting **208 people**, through establishing planting bases in authentic medicinal material producing areas and undertaking traditional Chinese medicine collection and processing projects, contributing to rural revitalization Poverty Alleviation and Rural Revitalization Project Investment | Project | Quantity/Content | | :--- | :--- | | Total Investment (ten thousand yuan) | 52.46 | | Of which: Funds (ten thousand yuan) | 52.46 | | Beneficiaries (persons) | 208 | | Assistance Form | Industrial poverty alleviation, employment poverty alleviation | - The company contributes to rural revitalization by leasing farmers' land in authentic medicinal material producing areas, establishing fully traceable standardized traditional Chinese medicine planting and production bases, and undertaking traditional Chinese medicine collection and processing projects, thereby increasing local employment and driving farmers' income growth[86](index=86&type=chunk) [Section V Significant Matters](index=29&type=section&id=Section%20V%20Significant%20Matters) This section details the fulfillment of commitments, absence of non-operating fund occupation by related parties, lack of illegal guarantees, major litigation, and the company's integrity status, along with significant related-party transactions and other important matters [Fulfillment of Commitments](index=29&type=section&id=I.%20Fulfillment%20of%20Commitments) Discloses the fulfillment of commitments by the company's controlling shareholders, other related parties, and the company regarding resolving horizontal competition, related-party transactions, and maintaining the independence of the listed company; all commitments were strictly fulfilled on time - Controlling shareholder Zhengzhou Tairong Industrial Investment Co., Ltd. and its controlling shareholders committed to resolving horizontal competition, standardizing related-party transactions, and maintaining the independence of the listed company; all were strictly fulfilled on time during the reporting period[89](index=89&type=chunk)[90](index=90&type=chunk) - Zhengzhou Zhongsheng Industrial Group Co., Ltd. committed to avoiding horizontal competition, reducing and standardizing related-party transactions, and made performance commitments; all were strictly fulfilled on time during the reporting period[89](index=89&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) - Wu Lan and her spouse Tao Xinhua committed to avoiding horizontal competition and reducing and standardizing related-party transactions; all were strictly fulfilled on time during the reporting period[90](index=90&type=chunk)[91](index=91&type=chunk) [Non-operating Fund Occupation by Controlling Shareholders and Other Related Parties during the Reporting Period](index=32&type=section&id=II.%20Non-operating%20Fund%20Occupation%20by%20Controlling%20Shareholders%20and%20Other%20Related%20Parties%20during%20the%20Reporting%20Period) During the reporting period, the company was not subject to non-operating fund occupation by controlling shareholders or other related parties - During the reporting period, the company was not subject to non-operating fund occupation by controlling shareholders or other related parties[93](index=93&type=chunk) [Illegal Guarantees](index=32&type=section&id=III.%20Illegal%20Guarantees) During the reporting period, the company did not provide external guarantees in violation of prescribed decision-making procedures - During the reporting period, the company did not provide external guarantees in violation of prescribed decision-making procedures[93](index=93&type=chunk) [Major Litigation and Arbitration Matters](index=33&type=section&id=VII.%20Major%20Litigation%20and%20Arbitration%20Matters) During the reporting period, the company had no major litigation or arbitration matters - During the reporting period, the company had no major litigation or arbitration matters[94](index=94&type=chunk) [Explanation of the Integrity Status of the Company, Its Controlling Shareholders, and Actual Controllers during the Reporting Period](index=33&type=section&id=IX.%20Explanation%20of%20the%20Integrity%20Status%20of%20the%20Company%2C%20Its%20Controlling%20Shareholders%2C%20and%20Actual%20Controllers%20during%20the%20Reporting%20Period) During the reporting period, the company, its controlling shareholders, and actual controllers maintained good integrity, with no unfulfilled court judgments or large overdue debts - During the reporting period, the company, its controlling shareholders, and actual controllers maintained good integrity, with no unfulfilled court judgments or large overdue debts[94](index=94&type=chunk) [Significant Related-Party Transactions](index=33&type=section&id=X.%20Significant%20Related-Party%20Transactions) Discloses daily operating related-party transactions, significant related-party transactions involving joint external investments, and related-party creditor-debtor relationships - The total estimated daily related-party transactions for the company and its controlled subsidiaries in 2025 will not exceed **15.07 million yuan**, with actual transactions totaling **5.2853 million yuan** during the reporting period[95](index=95&type=chunk) - The company jointly invested with its indirect controlling shareholder, Zhengzhou Gaoxin Industrial Investment Group Co., Ltd., to establish the Longhua Pharmaceutical Industry Fund, with the company having contributed **123.156 million yuan**[97](index=97&type=chunk) - The company received financial support of up to **1.2 billion yuan** from its indirect controlling shareholder Gaoxin Investment Control, with an outstanding balance of **284.7252 million yuan** at the end of the reporting period, and **4.9209 million yuan** in funding costs paid during the reporting period[98](index=98&type=chunk)[99](index=99&type=chunk) [Significant Contracts and Their Fulfillment](index=35&type=section&id=XI.%20Significant%20Contracts%20and%20Their%20Fulfillment) Discloses significant guarantees executed and outstanding during the reporting period, primarily company guarantees for its subsidiaries, with the total guarantee amount accounting for **18.92%** of the company's net assets Company's Total Guarantee Amount | Indicator | Amount (ten thousand yuan) | | :--- | :--- | | Total Guarantees Provided to Subsidiaries during Reporting Period | 24,508.41 | | Total Outstanding Guarantees to Subsidiaries at Period-End (B) | 30,274.05 | | Total Guarantees (A+B) | 30,274.05 | | Total Guarantees as % of Company's Net Assets | 18.92 | - The company primarily provides guarantees for its subsidiaries; at the end of the reporting period, the total guarantee amount was **302.7405 million yuan**, accounting for **18.92%** of the company's net assets[102](index=102&type=chunk) [Explanation of Other Significant Matters](index=37&type=section&id=XIII.%20Explanation%20of%20Other%20Significant%20Matters) Discloses the completion of the company's share repurchase plan and the proposal to apply for registration and issuance of ultra-short-term financing bonds - The company has completed its share repurchase, repurchasing **6,438,700 shares** with a total capital expenditure of **30.0577 million yuan**[103](index=103&type=chunk) - The company plans to apply for registration and issuance of ultra-short-term financing bonds with a total amount not exceeding (including) **800 million yuan**[104](index=104&type=chunk) [Section VI Share Changes and Shareholder Information](index=38&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) This section details changes in the company's share capital and shareholder structure, including the total number of shareholders and the top ten shareholders [Share Capital Changes](index=38&type=section&id=I.%20Share%20Capital%20Changes) During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[106](index=106&type=chunk) [Shareholder Information](index=38&type=section&id=II.%20Shareholder%20Information) Discloses the total number of common shareholders, the top ten shareholders, and the top ten unrestricted common shareholders at the end of the reporting period - As of the end of the reporting period, the total number of common shareholders was **40,882**[107](index=107&type=chunk) Top Ten Shareholders at Period-End | Shareholder Name | Shares Held at Period-End (shares) | Percentage (%) | Share Status | Number (shares) | | :--- | :--- | :--- | :--- | :--- | | Zhengzhou Tairong Industrial Investment Co., Ltd. | 82,441,168 | 14.37 | Pledged | 41,220,584 | | Zhengzhou Zhongsheng Industrial Group Co., Ltd. | 50,000,000 | 8.71 | Pledged | 50,000,000 | | Wu Lan | 11,433,434 | 1.99 | Unrestricted | 0 | | Xu Yiguo | 6,429,000 | 1.12 | Unrestricted | 0 | | Henan Tailong Pharmaceutical Co., Ltd. - Third Employee Stock Ownership Plan | 6,265,207 | 1.09 | Unrestricted | 0 | - The largest shareholder, Zhengzhou Tairong Industrial Investment Co., Ltd., holds **14.37%** of shares, of which **41,220,584 shares** are pledged[109](index=109&type=chunk) - The second largest shareholder, Zhengzhou Zhongsheng Industrial Group Co., Ltd., holds **8.71%** of shares, with all **50,000,000 shares** pledged[109](index=109&type=chunk) [Section VII Bond-Related Information](index=40&type=section&id=Section%20VII%20Bond-Related%20Information) This section confirms the absence of corporate bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds during the reporting period - During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments, nor any convertible corporate bonds[113](index=113&type=chunk) [Section VIII Financial Report](index=41&type=section&id=Section%20VIII%20Financial%20Report) This section presents the company's semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies and financial items [Audit Report](index=41&type=section&id=I.%20Audit%20Report) This semi-annual report has not been audited - This semi-annual report has not been audited[5](index=5&type=chunk) [Financial Statements](index=41&type=section&id=II.%20Financial%20Statements) Provides the company's consolidated and parent company balance sheets, income statements, and cash flow statements for the first half of 2025, as well as consolidated and parent company statements of changes in owners' equity Consolidated Balance Sheet Key Data | Item | June 30, 2025 (yuan) | December 31, 2024 (yuan) | | :--- | :--- | :--- | | Total Assets | 3,579,032,630.35 | 3,489,768,020.93 | | Total Liabilities | 1,923,908,598.80 | 1,863,525,871.55 | | Total Owners' Equity | 1,655,124,031.55 | 1,626,242,149.38 | Consolidated Income Statement Key Data | Item | 2025 Semi-Annual (yuan) | 2024 Semi-Annual (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 762,431,550.01 | 927,248,514.93 | | Total Profit | 24,358,725.70 | 21,761,268.60 | | Net Profit | 22,601,677.95 | 26,029,644.65 | | Net Profit Attributable to Parent Company Shareholders | 19,346,600.25 | 26,617,997.43 | Consolidated Cash Flow Statement Key Data | Item | 2025 Semi-Annual (yuan) | 2024 Semi-Annual (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -111,681,634.10 | -91,951,749.06 | | Net Cash Flow from Investing Activities | 90,711,591.51 | 95,542,622.53 | | Net Cash Flow from Financing Activities | 95,560,568.00 | 105,133,781.60 | | Net Increase in Cash and Cash Equivalents | 74,590,525.41 | 108,724,655.07 | [Company Basic Information](index=55&type=section&id=III.%20Company%20Basic%20Information) Introduces the company's establishment, name changes, share capital structure, controlling shareholders, actual controllers, and main business activities and scope - Henan Tailong Pharmaceutical Co., Ltd. was officially listed on the Shanghai Stock Exchange on **August 13, 1999**, with stock code **600222**[137](index=137&type=chunk) - As of June 30, 2025, the company's share capital was **573.886283 million shares**; Zhengzhou Tairong Industrial Investment Co., Ltd. is the controlling shareholder, and Zhengzhou High-tech Industrial Development Zone Management Committee is the actual controller[138](index=138&type=chunk) - The company's main business activities are pharmaceutical manufacturing, pharmaceutical and medicinal material distribution, and pharmaceutical R&D services[138](index=138&type=chunk) [Basis for Preparation of Financial Statements](index=55&type=section&id=IV.%20Basis%20for%20Preparation%20of%20Financial%20Statements) The financial statements are prepared on a going concern basis, in accordance with "Enterprise Accounting Standards", and based on significant accounting policies and estimates - The company's financial statements are prepared on a going concern basis, in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance, based on actual transactions and events[139](index=139&type=chunk) - The company has no significant doubts about its ability to continue as a going concern for **12 months** from the end of the current period[140](index=140&type=chunk) [Significant Accounting Policies and Accounting Estimates](index=56&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Accounting%20Estimates) Details the company's adherence to enterprise accounting standards, accounting period, operating cycle, functional currency, materiality criteria, business combinations, consolidated financial statements, joint arrangements, cash and cash equivalents, foreign currency transactions, financial instruments, notes receivable, accounts receivable, other receivables, inventories, contract assets, long-term equity investments, investment properties, fixed assets, construction in progress, borrowing costs, intangible assets, impairment of long-term assets, long-term deferred expenses, contract liabilities, employee benefits, provisions, revenue, contract costs, government grants, deferred income tax assets/liabilities, and leases - The company's accounting year is the calendar year, with a normal operating cycle of **12 months**, and the functional currency is RMB[142](index=142&type=chunk)[143](index=143&type=chunk)[144](index=144&type=chunk) - The company classifies financial assets into three categories: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[154](index=154&type=chunk)[155](index=155&type=chunk) - Inventory is valued using the weighted average method when issued, and a perpetual inventory system is used[173](index=173&type=chunk) - Fixed asset depreciation is calculated using the straight-line method, with buildings depreciated over **20-50 years**[185](index=185&type=chunk)[186](index=186&type=chunk) - The company recognizes revenue when it satisfies a performance obligation in the contract, i.e., when the customer obtains control of the related goods or services, at the transaction price allocated to that performance obligation[205](index=205&type=chunk) - Government grants are classified as related to daily activities (recognized in other income) or unrelated to daily activities (recognized in non-operating income), and are recognized and measured based on whether they relate to assets or income[209](index=209&type=chunk) [Taxation](index=74&type=section&id=VI.%20Taxation) Discloses the company's main tax types and rates, including VAT, urban maintenance and construction tax, education surcharge, local education surcharge, and corporate income tax, and explains the tax incentives enjoyed by the company and its subsidiaries Main Tax Types and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales of goods or processing, repair and maintenance services, sales of services, intangible assets, real estate income-based output tax, less deductible input tax | 13%, 9%, 6%, Exempt | | Urban Maintenance and Construction Tax | Actual paid turnover tax | 7%, 5% | | Education Surcharge | Actual paid turnover tax | 3% | | Local Education Surcharge | Actual paid turnover tax | 2% | | Corporate Income Tax | Taxable income | 25%, 20%, 15%, Exempt | - The company enjoys a **5% VAT super deduction** policy for advanced manufacturing enterprises; some subsidiaries' income from technology transfer and development is exempt from VAT[219](index=219&type=chunk)[220](index=220&type=chunk) - The company and some subsidiaries are recognized as high-tech enterprises, enjoying a **15% corporate income tax** preferential rate[220](index=220&type=chunk)[221](index=221&type=chunk) - Some subsidiaries engaged in primary processing of agricultural products or meeting the criteria for small and micro-profit enterprises enjoy income tax exemption or a reduced **20% tax rate**[221](index=221&type=chunk)[222](index=222&type=chunk) [Notes to Consolidated Financial Statement Items](index=77&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) Provides detailed notes and explanations for items in the consolidated financial statements, including monetary funds, trading financial assets, notes receivable, accounts receivable, inventories, contract assets, long-term equity investments, other equity instrument investments, other non-current financial assets, investment properties, fixed assets, construction in progress, right-of-use assets, intangible assets, goodwill, long-term deferred expenses, deferred income tax assets/liabilities, short-term borrowings, notes payable, accounts payable, contract liabilities, employee benefits payable, taxes payable, other payables, non-current liabilities due within one year, other current liabilities, long-term borrowings, lease liabilities, deferred income, share capital, treasury stock, other comprehensive income, surplus reserves, undistributed profits, operating revenue and costs, taxes and surcharges, selling expenses, administrative expenses, R&D expenses, financial expenses, other income, investment income, fair value change gains, credit impairment losses, asset impairment losses, asset disposal gains, non-operating income, non-operating expenses, income tax expenses, and cash flow statement items Monetary Funds Composition | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Cash on Hand | 713,705.27 | 458,490.00 | | Bank Deposits | 217,916,625.97 | 143,581,315.83 | | Other Monetary Funds | 25,000,000.00 | 36,000,000.00 | | **Total** | **243,630,331.24** | **180,039,805.83** | - Of the monetary funds, **25,146,899.98 yuan** are restricted, mainly for acceptance deposits[225](index=225&type=chunk) - Accounts receivable at period-end had a book balance of **1,019,122,455.40 yuan**, with bad debt provisions of **83,657,365.66 yuan**[236](index=236&type=chunk) - Inventory at period-end had a book value of **476,078,190.77 yuan**, including **224,091,984.43 yuan** in raw materials and **191,524,340.28 yuan** in inventory goods[265](index=265&type=chunk) - Long-term borrowings at period-end were **325,070,459.45 yuan**, a significant increase of **10665.41%** from the beginning of the period[64](index=64&type=chunk)[327](index=327&type=chunk) - Operating revenue was **762,431,550.01 yuan**, and operating cost was **574,172,789.53 yuan**[347](index=347&type=chunk) - R&D expenses were **25,905,142.62 yuan**, a year-on-year decrease of **56.93%**[355](index=355&type=chunk) - Net cash flow from operating activities was **-111,681,634.10 yuan**[380](index=380&type=chunk) [R&D Expenses](index=128&type=section&id=VIII.%20R%26D%20Expenses) Discloses the composition of the company's R&D expenses by nature for the current period, with **25,905,142.62 yuan** expensed and **1,689,957.30 yuan** capitalized R&D Expenses by Nature | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Personnel Expenses | 18,303,234.44 | 29,618,002.92 | | Material Costs | 3,438,503.37 | 12,108,668.08 | | Depreciation | 3,150,158.39 | 3,251,786.98 | | Amortization of Intangible and Other Assets | 1,433,633.16 | 1,433,633.16 | | Outsourcing Fees | 1,067,466.63 | 17,365,720.98 | | Office and Travel Expenses | 202,103.93 | 282,222.12 | | **Total** | **27,595,099.92** | **64,060,034.24** | | Of which: Expensed R&D | 25,905,142.62 | 60,152,217.93 | | Capitalized R&D | 1,689,957.30 | 3,907,816.31 | - Total R&D expenses for the current period were **27,595,099.92 yuan**, a significant decrease from **64,060,034.24 yuan** in the previous period[388](index=388&type=chunk) [Changes in Consolidation Scope](index=129&type=section&id=IX.%20Changes%20in%20Consolidation%20Scope) During the reporting period, the company had no business combinations involving non-common control, common control, reverse acquisitions, or disposals of subsidiaries leading to loss of control - During the reporting period, the company had no business combinations involving non-common control, common control, reverse acquisitions, or disposals of subsidiaries leading to loss of control, and no significant changes in the scope of consolidation[391](index=391&type=chunk) [Interests in Other Entities](index=130&type=section&id=X.%20Interests%20in%20Other%20Entities) Discloses the composition of the company's enterprise group, including major subsidiaries and their shareholding percentages, as well as key financial information for important non-wholly-owned subsidiaries, joint ventures, and associates Enterprise Group Composition (Partial) | Subsidiary Name | Shareholding (%) (Direct) | Shareholding (%) (Indirect) | Acquisition Method | | :--- | :--- | :--- | :--- | | Tongjuntang Pharmaceutical Co., Ltd. | 100 | | Business combination not under common control | | Beijing Xinlingxian Pharmaceutical Technology Development Co., Ltd. | 87.38 | | Business combination not under common control | | Henan Tongjuntang Authentic Medicinal Materials Co., Ltd. | 100 | | Establishment | | Zhejiang Tongjuntang Traditional Chinese Medicine Decoction Pieces Co., Ltd. | | 100 | Establishment | Key Financial Information of Important Non-Wholly-Owned Subsidiaries | Subsidiary Name | Minority Shareholding (%) | Profit/Loss Attributable to Minority Shareholders (yuan) | Operating Revenue (ten thousand yuan) | Net Profit (ten thousand yuan) | | :--- | :--- | :--- | :--- | :--- | | Beijing Xinlingxian Pharmaceutical Technology Development Co., Ltd. | 12.62 | 657,396.73 | 11,233.29 | 559.82 | - Zhengzhou Longhua Pharmaceutical Industry Fund Partnership (Limited Partnership) is a joint venture, with the company holding **55%** and accounted for using the equity method[398](index=398&type=chunk) - Henan Jinggang Advanced Manufacturing Equity Investment Fund (Limited Partnership) is an associate, with the company holding **17.3334%** and able to exert significant influence over its investment decisions through its wholly-owned subsidiary, accounted for using the equity method[399](index=399&type=chunk) [Government Grants](index=136&type=section&id=XI.%20Government%20Grants) Discloses government grant liability items and the amount of government grants recognized in profit or loss for the current period Government Grant Liability Items | Financial Statement Item | Period-Beginning Balance (yuan) | New Grants in Current Period (yuan) | Amount Recognized in Non-Operating Income in Current Period (yuan) | Amount Transferred to Other Income in Current Period (yuan) | Period-End Balance (yuan) | Related to Asset/Income | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 2,782,550.13 | | | 171,699.96 | 2,610,850.17 | Asset-related government grants | Government Grants Recognized in Current Profit or Loss | Type | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Income-related | 4,181,283.31 | 1,618,182.42 | | **Total** | **4,181,283.31** | **1,618,182.42** | [Risks Related to Financial Instruments](index=137&type=section&id=XII.%20Risks%20Related%20to%20Financial%20Instruments) Explains the company's exposure to credit risk, liquidity risk, and market risk (including interest rate risk and foreign currency risk), and outlines measures taken to manage these risks - The company's financial instruments are primarily exposed to credit risk, liquidity risk, and market risk (including interest rate risk and foreign currency risk)[410](index=410&type=chunk)[412](index=412&type=chunk) - Credit risk mainly arises from bank deposits and receivables; the company controls this by placing bank deposits with highly-rated financial institutions and conducting credit assessments and continuous monitoring of customers[410](index=410&type=chunk) - Liquidity risk is managed by monitoring cash balances, readily marketable securities, and rolling forecasts of cash flows for the next **12 months**[411](index=411&type=chunk) - Interest rate risk is not significant as the company's borrowings are all at fixed rates; foreign currency risk is not significant as the company operates within China and all its activities are denominated in RMB[412](index=412&type=chunk) [Fair Value Disclosure](index=139&type=section&id=XIII.%20Fair%20Value%20Disclosure) Discloses the fair value of the company's assets and liabilities measured at fair value at the end of the reporting period, and explains the basis for determining fair value measurements at each level Fair Value of Assets Measured at Fair Value at Period-End | Item | Level 1 Fair Value Measurement (yuan) | Level 2 Fair Value Measurement (yuan) | Level 3 Fair Value Measurement (yuan) | Total (yuan) | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | | 2,200,069.85 | | 2,200,069.85 | | Other Equity Instrument Investments | | | 279,751,194.06 | 279,751,194.06 | | Non-current Financial Assets | | | 37,499,313.87 | 37,499,313.87 | | **Total Assets Continuously Measured at Fair Value** | | **2,200,069.85** | **317,250,507.93** | **319,450,577.78** | - Level 1 fair value measurement uses unadjusted quoted prices in active markets; Level 2 uses directly or indirectly observable inputs other than Level 1; Level 3 uses unobservable inputs[416](index=416&type=chunk)[417](index=417&type=chunk)[418](index=418&type=chunk) [Related Parties and Related-Party Transactions](index=140&type=section&id=XIV.%20Related%20Parties%20and%20Related-Party%20Transactions) Provides detailed disclosure of the company's parent company, subsidiaries, joint ventures and associates, and other related parties, and lists related-party transactions such as purchases and sales of goods, provision and acceptance of services, related-party leases, related-party guarantees, and related-party fund borrowings - Zhengzhou Tairong Industrial Investment Co., Ltd. is the company's controlling shareholder, and Zhengzhou High-tech Industrial Development Zone Management Committee is the company's ultimate controlling party[420](index=420&type=chunk)[421](index=421&type=chunk)[422](index=422&type=chunk) - During the reporting period, the company engaged in daily related-party transactions with Hangzhou Derun Quan Health Industry Development Co., Ltd., Zhengzhou Weixian Pharmaceutical Technology Co., Ltd., and other related parties, including purchases and sales of goods, acceptance of warehousing services, and provision of R&D services[424](index=424&type=chunk)[425](index=425&type=chunk) - The company recognized **646,003.67 yuan** in rental income as a lessor and paid **78,275.22 yuan** in rental expenses as a lessee[425](index=425&type=chunk)[426](index=426&type=chunk) - The company provided multiple guarantees for its subsidiaries as a guarantor and received guarantees from controlling shareholders and related parties as a guaranteed party, with total guarantee amounts of **1,047,725,200.00 yuan**[426](index=426&type=chunk)[427](index=427&type=chunk)[428](index=428&type=chunk) - The company borrowed funds from its indirect controlling shareholder, Zhengzhou Gaoxin Investment Holding Group Co., Ltd., and paid **4.9209 million yuan** in funding costs during the reporting period[429](index=429&type=chunk) - Key management personnel compensation for the current period was **4.485 million yuan**[431](index=431&type=chunk) [Share-based Payment](index=146&type=section&id=XV.%20Share-based%20Payment) During the reporting period, the company had no equity-settled or cash-settled share-based payment arrangements, nor did it incur any share-based payment expenses - During the reporting period, the company had no equity-settled share-based payment arrangements, nor did it incur any share-based payment expenses[437](index=437&type=chunk) [Commitments and Contingencies](index=147&type=section&id=XVI.%20Commitments%20and%20Contingencies) Discloses the company's significant outstanding commitments at the balance sheet date, primarily existing lease contracts, with estimated future lease payments totaling **32,517,468.68 yuan** Significant Commitments | Project Name | Estimated Future Lease Payments (yuan) | | :--- | :--- | | Existing Lease Contracts | 32,517,468.68 | - At the end of the reporting period, the company had no significant contingent matters requiring disclosure[439](index=439&type=chunk) [Post-Balance Sheet Events](index=147&type=section&id=XVII.%20Post-Balance%20Sheet%20Events) During the reporting period, the company had no significant non-adjusting events, profit distribution, sales returns, or other post-balance sheet events - During the reporting period, the company had no significant non-adjusting events, profit distribution, sales returns, or other post-balance sheet events[439](index=439&type=chunk) [Other Significant Matters](index=148&type=section&id=XVIII.%20Other%20Significant%20Matters) During the reporting period, the company had no prior period accounting error corrections, significant debt restructurings, asset exchanges, annuity plans, discontinued operations, or other matters; Discloses the basis for determining the company's reporting segments and their financial information - The company identified four reporting segments: pharmaceutical manufacturing, pharmaceutical R&D services, pharmaceutical and medicinal material distribution, and others, based on its internal organizational structure, management requirements, and internal reporting system[440](index=440&type=chunk) Reporting Segment Financial Information (ten thousand yuan) | Item | Pharmaceutical Manufacturing | Pharmaceutical R&D Services | Pharmaceutical and Medicinal Material Distribution | Other | Inter-segment Eliminations | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 54,228.14 | 11,233.29 | 10,992.88 | 282.30 | 493.46 | 76,243.15 | | Operating Cost | 41,102.17 | 7,316.32 | 9,296.23 | 94.63 | 392.08 | 57,417.27 | - The company did not disclose the total assets and total liabilities for each reporting segment because its wholly-owned subsidiary Tongjuntang has both pharmaceutical manufacturing and pharmaceutical distribution businesses, making it impossible to distinguish the assets and liabilities belonging to each segment[443](index=443&type=chunk) [Notes to Parent Company Financial Statement Major Items](index=149&type=section&id=XIX.%20Notes%20to%20Parent%20Company%20Financial%20Statement%20Major%20Items) Provides detailed notes for major items in the parent company's financial statements, including accounts receivable, other receivables, and long-term equity investments - Parent company's accounts receivable at period-end had a book balance of **199,512,852.28 yuan**, with bad debt provisions of **7,331,184.50 yuan**[448](index=448&type=chunk) - Parent company's other receivables at period-end had a book balance of **532,509,351.60 yuan**, with bad debt provisions of **16,241,481.20 yuan**[459](index=459&type=chunk)[460](index=460&type=chunk) - Parent company's long-term equity investments had a book value of **1,248,250,149.48 yuan**, mainly including investments in subsidiaries and investments in associates and joint ventures[462](index=462&type=chunk) - Parent company's operating revenue was **201,585,687.14 yuan**, and operating cost was **118,804,378.04 yuan**[465](index=465&type=chunk) - Parent company's investment income was **634,840.46 yuan**, mainly from dividend income obtained from other equity instrument investments during the holding period[465](index=465&type=chunk) [Supplementary Information](index=158&type=section&id=XX.%20Supplementary%20Information) Provides supplementary information including a detailed statement of non-recurring gains and losses, return on net assets, and earnings per share Current Period Non-recurring Gains and Losses Details | Item | Amount (yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets | -73,320.16 | | Government grants recognized in current profit or loss | 4,181,283.31 | | Fair value change gains and losses | 1,451,657.50 | | Other non-operating income and expenses | -65,170.45 | | Other gains and losses meeting the definition of non-recurring gains and losses | -292,295.91 | | Less: Income tax impact | 780,874.02 | | Minority shareholder equity impact (after tax) | 269,122.45 | | **Total** | **4,152,157.82** | Return on Net Assets and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Basic Earnings Per Share (yuan/share) | Diluted Earnings Per Share (yuan/share) | | :--- | :--- | :--- | :--- | | Net profit attributable to common shareholders of the company | 1.22 | 0.0350 | 0.0350 | | Net profit attributable to common shareholders of the company after deducting non-recurring gains and losses | 0.96 | 0.0275 | 0.0275 |