新疆百花村医药集团股份有限公司 证券代码：600721 证券简称：百花医药 公告编号：2024-065 新疆百花村医药集团股份有限公司 关于股东签署一致行动人协议书之补充协议（三）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。 2024 年 9 月 20 日，新疆百花村医药集团股份有限公司（以下简称"公司"） 收到公司股东新疆华凌工贸（集团）有限公司（以下简称"华凌集团"）与李建 城先生签署的《一致行动人协议书之补充协议》（三），双方将原协议有效期延 长至 2025 年 9 月 20 日，具体情况如下： 一、本次签署《一致行动人协议书之补充协议》（三）的背景情况 1、华凌集团与李建城先生于 2020 年 9 月 21 日签署了《一致行动人协议书》， 有效期 2 年，具体详见公司于 2020 年 9 月 22 日披露的《公司关于股东签署一致 行动人协议书的公告》（公告编号：2020-082）。 2、《一致行动人协议书》于 2022 年 9 月 20 日到期，华凌集团与李建城先 生于 2022 年 9 月 20 日签署了《 ...

新疆百花村医药集团股份有限公司 证券代码：600721 证券简称：百花医药 公告编号：2024-064 新疆百花村医药集团股份有限公司关于 2021 年股票期权激励计划首次授予第三个行权期、 预留授予第二个行权期开始行权的提示性公告 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。 1 / 3 ● 行权股票来源：公司向激励对象定向发行本公司人民币A股普通股股票 ● 本次行权起始日期：2024年9月4日 ● 本次行权方式：自主行权 新疆百花村医药集团股份有限公司 （一）授予日：首次授予股票期权的授予日是 2021 年 7 月 26 日，预留授予 股票期权的授予日是 2022 年 6 月 30 日 （二）行权数量：2,533,245 份 （三）行权人数：共 149 名，其中首次授予 114 名，预留授予 35 名 （四）行权价格：4.98 元/股 重要内容提示： ● 股票期权行权数量：2,533,245份 新疆百花村医药集团股份有限公司（以下简称"公司"）于2024年7月31日， 召开第八届董事会薪酬与考核委员会2024年第二次会议 ...

审议通过《关于选举第九届监事会主席的议案》 一、监事会召开情况 新疆百花村医药集团股份有限公司（以下简称"公司"）第九届监事会第一 次会议，于 2024 年 8 月 26 日北京时间 17:00，在公司 22 楼会议室以现场结合通 讯方式召开。本次会议以电子邮件及书面送达的方式发出会议通知。应参会监事 3 人，实际参会监事 3 人，公司相关人员列席了会议。会议推举监事马斌先生主 持，会议符合《公司法》和《公司章程》的规定，会议召开有效。 二、监事会会议审议情况 新疆百花村医药集团股份有限公司 证券代码：600721 证券简称：百花医药 公告编号：2024-061 新疆百花村医药集团股份有限公司 第九届监事会第一次会议决议公告 本公司监事会及全体监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。 表决结果：同意 3 票，反对 0 票，弃权 0 票。 根据《公司法》《公司章程》等有关规定，公司监事会选举马斌先生为第九 届监事会主席。任期自本次监事会审议通过之日起至第九届监事会任期届满之日 止。 特此公告。 新疆百花村医药集团股份有限公司 附件：个人简历 ...

百花医药 2024 年第二次临时股东大会法律意见书 新疆星河律师事务所 新疆星河律师事务所 关于新疆百花村医药集团股份有限公司 2024年第二次临时股东大会 律师见证法律意见书 星河证股字[2024]第009号 致：新疆百花村医药集团股份有限公司 新疆星河律师事务所（以下简称"本所"）接受新疆百花村医药集团 股份有限公司（以下简称"公司"）的委托，指派本所律师出席公司2024 年第二次临时股东大会（以下简称"本次股东大会"），并根据《中华人 民共和国公司法》（以下简称"公司法"）、《中华人民共和国证券法》、 《上市公司股东大会规则》等现行法律、法规、规范性文件和《新疆百花 村医药集团股份有限公司》（以下简称"公司章程"）的有关规定出具本 法律意见书。 关于本法律意见书，本所及本所律师谨作如下声明： （1）本所及本所律师本次所发表的法律意见，仅依据本法律意见书出 具日以前已经发生的或者存在的事实并基于本所律师对有关法律、法规和 规范性文件的理解而形成。在本法律意见书中，本所及本所律师仅就本次 会议的召集和召开程序、召集人和出席人员的资格、表决程序以及表决结 果进行核查和见证并发表法律意见，不对本次会议的议案内容 ...

新疆百花村医药集团股份有限公司 新疆百花村医药集团股份有限公司 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。 证券代码：600721 证券简称：百花医药 公告编号：2024-059 重要内容提示： 2024 年第二次临时股东大会决议公告 一、 会议召开和出席情况 (一) 股东大会召开的时间：2024 年 08 月 26 日 (二) 股东大会召开的地点：新疆百花村医药集团股份有限公司 22 楼会议室 (三) 出席会议的普通股股东和恢复表决权的优先股股东及其持有股份情况： | 1、出席会议的股东和代理人人数 | 230 | | --- | --- | | 2、出席会议的股东所持有表决权的股份总数（股） | 115,362,263 | | 3、出席会议的股东所持有表决权股份数占公司有表决权股 | 30.1925 | | 份总数的比例（%） | | (四) 本次股东大会的召集和召开、表决方式符合《公司法》《公司章程》等 法律、法规及规范性文件的规定。本次会议采取现场加网络投票方式，公司董事 长郑彩红女士主持会议。 (五) 公司董事、 ...

新疆百花村医药集团股份有限公司 关于选举董事会专门委员会委员、董事长、 监事会主席、聘任高级管理人员、董事会秘书 新疆百花村医药集团股份有限公司 证券代码：600721 证券简称：百花医药 公告编号：2024-062 一、选举公司第九届董事会各专门委员会委员 为完善公司治理结构，根据《公司章程》《上海证券交易所股票上市规则》 等有关规定，会议选举产生公司第九届董事会专门委员会委员如下： 1、战略委员会（7 人） 主任委员：郑彩红 委员： 陆星宇 李文宝 黄 辉 吕政田 夏 燕 焦培想 2、审计委员会（5 人） 新疆百花村医药集团股份有限公司（以下简称"公司"）于 2024 年 8 月 26 日召开 2024 年第二次临时股东大会，分别选举产生了第九届董事会、监事会成 员，任期自 2024 年第二次临时股东大会通过之日起三年。 2024 年 8 月 26 日，公司召开了第九届董事会第一次会议、第九届监事会第 一次会议，分别审议通过了《公司关于选举第九届董事会各专门委员会成员的议 案》《公司关于选举第九届董事会董事长的议案》《公司关于聘任高级管理人员 的议案》《公司关于聘任董事会秘书的议案》《公司关于聘任证券事务 ...

证券代码：600721 证券简称：百花医药 公告编号：2024-060 新疆百花村医药集团股份有限公司 第九届董事会第一次会议决议公告 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。 新疆百花村医药集团股份有限公司 一、董事会会议召开情况 新疆百花村医药集团股份有限公司（以下简称"公司"）第九届董事会第一 次会议，于 2024 年 8 月 26 日北京时间 16:00，在公司 22 楼会议室以现场结合通 讯方式召开。本次会议以电子邮件及书面送达的方式发出会议通知。应参会董事 11 人，实际参会董事 11 人。会议推举董事郑彩红女士主持，会议符合《公司法》 和《公司章程》的规定，会议召开有效，公司监事、高管列席本次会议。 二、董事会会议审议情况 （一）审议通过《公司关于选举第九届董事会各专门委员会成员的议案》 表决结果：同意 11 票，反对 0 票，弃权 0 票。 会议决定公司第九届董事会下设各专门委员会组成情况如下： 1、战略委员会（7 人） 主任委员：郑彩红 委员： 陆星宇 李文宝 黄 辉 吕政田 夏 燕 焦培想 1 / 6 ...

新疆百花村医药集团股份有限公司 证券代码：600721 证券简称：百花医药 公告编号：2024-063 新疆百花村医药集团股份有限公司 关于召开 2024 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：2024 年 09 月 03 日（星期二） 下午 13:00-14:00 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 投资者可于 2024 年 08 月 27 日（星期二） 至 09 月 02 日（星期一）16:00 前登录上证路演中心网站首页点击"提问预征集"栏目或通过公司邮箱 bhc@xjbhc.org 进行提问。公司将在说明会上对投资者普遍关注的问题进行回答。 新疆百花村医药集团股份有限公司（以下简称"公司"）已于 2024 年 8 月 21 日发布公司 2024 年半年度报告，为便于广大投资者更全面深入地了解公司 2024 年半年度经营成果、财务状况，公司计划于 ...

新疆百花村医药集团股份有限公司 证券代码：600721 证券简称：百花医药 公告编号：2024-057 新疆百花村医药集团股份有限公司 关于控股股东股份解除质押及再质押的公告 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： 新疆华凌工贸（集团）有限公司（以下简称"华凌工贸"）持有新疆百花村 医药集团股份有限公司（以下简称"公司"）股份 79,525,087 股，占公司目前总 股本的比例为 20.81%，华凌工贸对持有的公司股份进行解质及再质押，质押的 股份数量为 79,525,087 股，占其所持股份比例的 100%，占公司目前总股本比例 的 20.81%。 华凌工贸直接持有 79,525,087 股公司股份，其一致行动人李建城持有公司股 份 15,000,000 股，合计持有公司股份 94,525,087 股。本次华凌工贸直接持有股份 解除质押及再质押后，华凌工贸及其一致行动人累计质押股份数量为 79,525,087 股，占合计持股数量的 84.13%。 1 / 6 新疆百花村医药集团股份有限公司 | 占公司 ...

[Definitions](index=4&type=section&id=Item%201.%20Definitions) This chapter defines professional terms and company entity abbreviations used in the report, including regulatory bodies, the company and its main subsidiaries, and common abbreviations in the pharmaceutical R&D industry - This chapter primarily explains professional terms and company entity abbreviations used in the report, including regulatory bodies (e.g., CSRC), the company and its main subsidiaries (e.g., Huawei Pharma, Lihua Bio), and common abbreviations in the pharmaceutical R&D industry (e.g., CRO, CMO, MAH)[7](index=7&type=chunk) [Company Profile and Key Financial Indicators](index=4&type=section&id=Item%202.%20Company%20Profile%20and%20Key%20Financial%20Indicators) The company achieved significant performance growth in the reporting period, with substantial increases in revenue, net profit, and operating cash flow, driven by market expansion and improved efficiency [Company Information](index=4&type=section&id=2.1%20Company%20Information) This chapter provides the company's basic business registration information, including Chinese and English names, legal representative, board secretary contact details, and registered and office addresses Company Information | Item | Information | | :--- | :--- | | **Company Chinese Name** | Xinjiang Baihuacun Pharmaceutical Group Co., Ltd. | | **Company Chinese Abbreviation** | Baihua Pharma | | **Stock Code** | 600721 | | **Legal Representative** | Zheng Caihong | | **Registered Address** | No. 3 R&D Office Building, Weiliu West Street 699, East Industrial Park, Wujiaqu City, Xinjiang | | **Office Address** | No. 1 Zhongshan Road South Lane, Tianshan District, Urumqi City, Xinjiang | [Key Accounting Data and Financial Indicators](index=5&type=section&id=2.2%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company achieved significant performance growth, with revenue increasing by 17.40%, net profit attributable to shareholders by 74.32%, and operating cash flow by 774.92% Key Accounting Data (January-June 2024) | Key Accounting Data | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | CNY 196,304,097.42 | CNY 167,213,932.12 | 17.40% | | Net Profit Attributable to Shareholders | CNY 22,660,985.62 | CNY 12,999,556.43 | 74.32% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | CNY 21,138,269.74 | CNY 12,277,137.65 | 72.18% | | Net Cash Flow from Operating Activities | CNY 53,766,073.92 | CNY 6,145,234.85 | 774.92% | | **Asset Status** | **End of Current Period** | **End of Prior Year** | **YoY Change (%)** | | Net Assets Attributable to Shareholders | CNY 732,950,285.39 | CNY 706,615,374.07 | 3.73% | | Total Assets | CNY 1,112,372,470.42 | CNY 1,062,010,154.10 | 4.74% | Key Financial Indicators (January-June 2024) | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.0594 | 0.0344 | 72.67% | | Weighted Average Return on Net Assets (%) | 3.16% | 1.93% | Increase of 1.23 percentage points | | Weighted Average Return on Net Assets (Excluding Non-recurring Items) (%) | 2.95% | 1.82% | Increase of 1.13 percentage points | - Performance growth was primarily driven by **17.40% revenue increase** from market expansion, **1.71% gross margin growth** in the pharmaceutical sector due to improved R&D efficiency, and a **3.98% reduction in overall expense ratio** from effective cost control[15](index=15&type=chunk) - Total non-recurring gains and losses for the reporting period amounted to **CNY 1,522,715.88**, mainly from fair value changes of financial assets held by non-financial enterprises and government subsidies[16](index=16&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=Item%203.%20Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's industry, core competencies, operating performance, and financial position, highlighting key drivers and potential risks [Industry and Main Business Overview for the Reporting Period](index=7&type=section&id=3.1%20Industry%20and%20Main%20Business%20Overview%20for%20the%20Reporting%20Period) The Chinese CRO industry, where the company operates, is poised for rapid growth, with the company providing comprehensive, one-stop outsourced R&D and technology transfer services - The Chinese CRO market size is projected to reach **CNY 307.67 billion** by 2030, growing at a **CAGR of 19.9%**, significantly outpacing the global market[17](index=17&type=chunk) - The company's main business covers the entire new drug R&D process, including early discovery, CMC development, clinical trials, registration and declaration, bioanalytical services, SMO, and MAH services[18](index=18&type=chunk) [Analysis of Core Competencies for the Reporting Period](index=8&type=section&id=3.2%20Analysis%20of%20Core%20Competencies%20for%20the%20Reporting%20Period) The company's core strengths include comprehensive "pharmaceutical research + clinical services + bioanalysis" capabilities, advanced facilities, a highly skilled professional team, extensive R&D experience, and robust quality management - The company provides **one-stop services** from drug discovery to registration and declaration, offering strong business synergy that saves clients R&D costs and time[22](index=22&type=chunk) - The company possesses a **30,000 square meter R&D building** with advanced equipment, where **86.03% of employees hold bachelor's degrees or higher**, and R&D and management personnel account for **95.52%**[23](index=23&type=chunk) - The company has established **five major formulation technology platforms**, obtained **79 patent authorizations**, and cumulatively secured over **400 domestic registration and production approvals** and clinical trial approvals[24](index=24&type=chunk) [Discussion and Analysis of Operating Results](index=9&type=section&id=3.3%20Discussion%20and%20Analysis%20of%20Operating%20Results) In H1 2024, the company achieved CNY 196 million in revenue and CNY 22.66 million in net profit, driven by enhanced core services, cost control, increased R&D investment, and strong order book growth Overall Operating Performance for H1 2024 | Indicator | Amount | YoY Growth | | :--- | :--- | :--- | | Total Operating Revenue | CNY 196 million | 17.40% | | Net Profit Attributable to Shareholders | CNY 22.66 million | - | | Net Profit (Excluding Non-recurring Items) | CNY 21.14 million | 72.18% | | Net Cash Flow from Operating Activities | CNY 53.77 million | 774.92% | - During the reporting period, the company's R&D investment totaled **CNY 20.42 million**, a **41.48% year-on-year increase**, primarily directed towards anti-tumor, ophthalmic, and SGLT2 inhibitor combination drug fields[31](index=31&type=chunk) - The company strengthened business synergy, adding **CNY 210 million** in new pharmaceutical main business contracts during the reporting period, with **CNY 1.115 billion** in outstanding orders as of the end of the period[31](index=31&type=chunk) - During the reporting period, the number of declared project specifications increased by **111% year-on-year**, and approved specifications increased by **26% year-on-year**, with a cumulative total of **6 generic drugs** being the first to be approved or pass consistency evaluation[31](index=31&type=chunk) [Key Operating Results for the Reporting Period](index=11&type=section&id=3.4%20Key%20Operating%20Results%20for%20the%20Reporting%20Period) This section analyzes financial statement changes, asset and liability status, investments, subsidiary performance, and risks, highlighting revenue growth from R&D, improved cash flow, and significant asset shifts [Main Business Analysis](index=11&type=section&id=3.4.1%20Main%20Business%20Analysis) Operating revenue increased by 17.40%, driven by enhanced efficiency in pharmaceutical R&D and clinical research, while operating costs grew at a slower rate, and net cash flow from operations surged due to improved project collections Analysis of Major Financial Statement Item Changes | Item | Current Period (CNY) | Prior Period (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 196,304,097.42 | 167,213,932.12 | 17.40 | | Operating Cost | 102,564,923.99 | 89,000,953.87 | 15.24 | | Net Cash Flow from Operating Activities | 53,766,073.92 | 6,145,234.85 | 774.92 | | Net Cash Flow from Investing Activities | -95,681,306.56 | -76,785,978.98 | -24.61 | | Investment Income | 1,744,495.09 | 947,597.30 | 84.10 | [Analysis of Assets and Liabilities](index=13&type=section&id=3.4.2%20Analysis%20of%20Assets%20and%20Liabilities) Total assets reached CNY 1.112 billion, with significant shifts including a decrease in cash due to bank wealth product purchases, a substantial increase in accounts receivable from R&D projects, and growth in development expenditures for MAH projects Changes in Major Asset and Liability Items | Item Name | Current Period End (CNY) | Prior Year End (CNY) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 161,732,145.76 | 202,070,585.90 | -19.96 | Purchase of bank wealth management products | | Financial Assets Held for Trading | 75,280,000.00 | 0.00 | 100.00 | Increase due to purchase of bank wealth management products | | Accounts Receivable | 33,708,627.74 | 16,448,667.57 | 104.93 | Increase in receivables from pharmaceutical R&D projects | | Prepayments | 8,908,166.51 | 5,031,328.63 | 77.05 | Increase in prepayments for clinical trial projects | | Development Expenditures | 16,958,969.16 | 10,487,849.93 | 61.70 | Increase in capitalized expenditures for MAH projects | [Analysis of Major Holding and Associate Companies](index=16&type=section&id=3.4.3%20Analysis%20of%20Major%20Holding%20and%20Associate%20Companies) Nanjing Huawei Pharma and Jiangsu Lihua Bio reported strong net profit growth due to increased sales and improved margins, while Nanjing Huanglong Bio's loss widened due to increased R&D investment in MAH projects Operating Performance of Major Subsidiaries (January-June 2024) | Subsidiary | Current Period Operating Revenue (CNY Million) | Current Period Net Profit (CNY Million) | Net Profit Change Rate (%) | Explanation of Change | | :--- | :--- | :--- | :--- | :--- | | Nanjing Huawei Pharma | 153.19 | 19.49 | 63.48% | Increased sales, gross margin growth | | Jiangsu Lihua Bio | 76.00 | 3.62 | 90.21% | Increased sales, reduced expense ratio | | Nanjing Huanglong Bio | 2.14 | -3.17 | -43.58% | Increased R&D investment in MAH projects | [Potential Risks](index=16&type=section&id=3.4.4%20Potential%20Risks) The company faces significant risks from intensifying market competition, uncertain industry policy changes, long R&D project cycles, rising R&D costs, and potential loss of professional technical talent - The company faces multiple risks including market competition, industry policy changes, long-cycle contract execution, rising R&D costs, and talent attrition[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk) [Corporate Governance](index=17&type=section&id=Item%204.%20Corporate%20Governance) The company held its annual and extraordinary general meetings, appointed a new board secretary, and continues to implement its 2021 stock option incentive plan and 2016 employee stock ownership plan [Corporate Governance Status](index=17&type=section&id=4.1%20Corporate%20Governance%20Status) During the reporting period, the company held shareholder meetings, appointed a new board secretary, and continued to execute its stock option incentive and employee stock ownership plans - During the reporting period, the company appointed **Ms. Zhao Qinqin** as Board Secretary, with CFO Cai Ziyun no longer concurrently holding the position[50](index=50&type=chunk) - The company's board of directors resolved that there is **no profit distribution plan or capital reserve capitalization plan** for the current reporting period[51](index=51&type=chunk) - The company's **2021 stock option incentive plan** continues to progress, with some options meeting exercise conditions, and the **2016 employee stock ownership plan** remains in effect, with **1,952,200 shares** remaining at period-end[52](index=52&type=chunk)[54](index=54&type=chunk) [Environmental and Social Responsibility](index=19&type=section&id=Item%205.%20Environmental%20and%20Social%20Responsibility) The company is not a key polluter and adheres to strict environmental protection policies, managing wastewater, exhaust gas, solid waste, and noise effectively, while promoting low-carbon practices [Environmental Information](index=19&type=section&id=5.1%20Environmental%20Information) The company is not a key polluting entity and strictly implements environmental protection measures for wastewater, exhaust gas, solid waste, and noise, promoting low-carbon operations - The company is **not classified as a key polluting entity** and has established multiple environmental management systems, including the 'Safety and Environmental Work Management Measures'[54](index=54&type=chunk)[56](index=56&type=chunk) - The company professionally treats experimental wastewater and exhaust gas to ensure compliance with discharge standards, and hazardous waste is safely disposed of by qualified professional institutions[54](index=54&type=chunk)[55](index=55&type=chunk) - The company implements green and low-carbon principles by advocating for low-carbon office practices and green travel to reduce carbon emissions[57](index=57&type=chunk) [Significant Matters](index=22&type=section&id=Item%206.%20Significant%20Matters) This section covers the fulfillment of commitments, penalties for alleged violations, and significant related-party transactions, highlighting both compliance and areas requiring rectification [Fulfillment of Commitments](index=22&type=section&id=6.1%20Fulfillment%20of%20Commitments) The company's controlling shareholder and actual controller have strictly fulfilled their commitments regarding avoiding horizontal competition and reducing related-party transactions, though one party from a major asset restructuring has not yet fulfilled their commitment - The company's controlling shareholder, Hualing Industrial & Trade, and the new actual controller, Hualing Holdings, have both committed to avoiding horizontal competition and regulating related-party transactions, and have strictly fulfilled these commitments during the reporting period[58](index=58&type=chunk)[59](index=59&type=chunk) - Mr. Zhang Xiaoqing, a counterparty in the 2016 major asset restructuring, failed to timely fulfill his 'Commitment Letter on Avoiding Horizontal Competition,' and the company has urged him to fulfill his commitment[59](index=59&type=chunk)[61](index=61&type=chunk) [Alleged Violations, Penalties and Rectification](index=27&type=section&id=6.2%20Alleged%20Violations%2C%20Penalties%20and%20Rectification) The company's controlling shareholder and actual controller received criticism and warning letters in June 2024 for information disclosure issues, prompting the company to enhance compliance and disclosure quality - The company's controlling shareholder and actual controller received a **circular criticism from the Shanghai Stock Exchange** and a **warning letter from the Xinjiang CSRC Bureau** in June 2024[66](index=66&type=chunk) - The company pledges to strengthen its study of laws and regulations, improve information disclosure quality, and urge shareholders to standardize their conduct and fulfill their obligations[66](index=66&type=chunk) [Significant Related Party Transactions](index=27&type=section&id=6.3%20Significant%20Related%20Party%20Transactions) The company's routine related-party transactions primarily involve its associate, Kangyuan Huawei Pharma, with subsidiaries Huawei Pharma and Lihua Bio providing R&D and clinical services, generating CNY 0.42 million and CNY 2.87 million in revenue respectively - Subsidiary Huawei Pharma's pharmaceutical R&D service transactions with related party Kangyuan Huawei generated **CNY 0.42 million** in revenue for the current period[67](index=67&type=chunk) - Subsidiary Lihua Bio provided clinical services to related party Kangyuan Huawei, signing contracts worth **CNY 9.3 million** and realizing **CNY 2.87 million** in revenue for the current period[67](index=67&type=chunk) [Share Changes and Shareholder Information](index=30&type=section&id=Item%207.%20Share%20Changes%20and%20Shareholder%20Information) This section details changes in the company's share capital due to stock option exercises, provides an overview of its shareholder structure, and explains the recent change in actual control [Share Capital Changes](index=30&type=section&id=7.1%20Share%20Capital%20Changes) The company's total share capital increased by 300,625 shares to 381,993,270 shares due to the exercise of stock options under the 2021 incentive plan, all of which are unrestricted tradable shares - As of June 30, 2024, due to the exercise of stock options under the incentive plan, the company's total share capital increased by **300,625 shares** to **381,993,270 shares**[70](index=70&type=chunk)[71](index=71&type=chunk) [Shareholder Information](index=31&type=section&id=7.2%20Shareholder%20Information) As of the reporting period end, the company had 36,816 common shareholders, with Xinjiang Hualing Industrial & Trade (Group) Co., Ltd. as the largest shareholder, holding 20.82% of shares, all of which are pledged Top Ten Shareholders' Holdings (As of June 30, 2024) | Shareholder Name | Number of Shares Held (shares) | Proportion (%) | Share Status | | :--- | :--- | :--- | :--- | | Xinjiang Hualing Industrial & Trade (Group) Co., Ltd. | 79,525,087 | 20.82 | Pledged | | Xinjiang Xinnong Modern Investment Development Co., Ltd. | 16,873,556 | 4.42 | - | | Li Jiancheng | 15,000,000 | 3.93 | - | | Zhang Xiaoqing | 9,876,775 | 2.59 | - | | Zhang Desheng | 8,149,601 | 2.13 | - | - The largest shareholder, Xinjiang Hualing Industrial & Trade (Group) Co., Ltd., has **pledged all 79,525,087 shares** it holds[73](index=73&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=33&type=section&id=7.3%20Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) On February 8, 2024, the company's actual controller changed to Mi Zaiqi, Mi Enhua, and Yang Xiaoling, following Hualing Holdings' capital increase in the controlling shareholder, Hualing Industrial & Trade - Due to a capital increase at the controlling shareholder level, the company's actual controllers changed from **Mi Enhua and Yang Xiaoling (couple)** to **Mi Zaiqi, Mi Enhua, and Yang Xiaoling**[78](index=78&type=chunk) [Financial Report](index=34&type=section&id=Item%2010.%20Financial%20Report) This section presents the company's consolidated and parent company financial statements for H1 2024, including balance sheets, income statements, cash flow statements, and statements of changes in equity, showing overall growth and improved cash flow [Financial Statements](index=34&type=section&id=10.1%20Financial%20Statements) This chapter provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for H1 2024, indicating growth in assets, net assets, and net profit, with significantly improved operating cash flow - The consolidated balance sheet shows that as of June 30, 2024, the company's total assets were **CNY 1.112 billion**, with owners' equity attributable to the parent company at **CNY 733 million**[80](index=80&type=chunk)[81](index=81&type=chunk) - The consolidated income statement indicates that total operating revenue for H1 2024 was **CNY 196 million**, with net profit attributable to parent company shareholders at **CNY 22.66 million**[84](index=84&type=chunk)[85](index=85&type=chunk) - The consolidated cash flow statement shows that net cash flow from operating activities for H1 2024 was **CNY 53.77 million**, a significant increase from **CNY 6.15 million** in the prior year period[88](index=88&type=chunk) [Company Overview and Basis of Financial Statement Preparation](index=45&type=section&id=10.2%20Company%20Overview%20and%20Basis%20of%20Financial%20Statement%20Preparation) This chapter outlines the company's historical development, registration details, and business scope, clarifying that financial statements are prepared under the going concern assumption in accordance with Accounting Standards for Business Enterprises - The company was listed on the Shanghai Stock Exchange in **June 1996**, and after multiple share capital changes and business restructurings, it was renamed 'Xinjiang Baihuacun Pharmaceutical Group Co., Ltd.' in **2022**, focusing on pharmaceutical R&D business[94](index=94&type=chunk)[99](index=99&type=chunk) - Financial statements are prepared on a **going concern basis**, with the accounting year being the calendar year and the functional currency being **RMB**[103](index=103&type=chunk)[104](index=104&type=chunk)[106](index=106&type=chunk) [Significant Accounting Policies and Estimates](index=48&type=section&id=10.3%20Significant%20Accounting%20Policies%20and%20Estimates) This chapter details the company's key accounting policies and estimates, covering business combinations, consolidated financial statements, financial instruments, inventories, long-term equity investments, fixed assets, intangible assets, revenue recognition, government grants, and leases - Revenue from pharmaceutical R&D, consistency evaluation, and clinical trial services is primarily recognized using the **percentage-of-completion method**[168](index=168&type=chunk) - Investment properties are subsequently measured using the **fair value model**[145](index=145&type=chunk)[146](index=146&type=chunk) - R&D expenditures are distinguished between research and development phases, with development phase expenditures meeting capitalization criteria recognized as **intangible assets**[155](index=155&type=chunk) [Notes to Consolidated Financial Statement Items](index=81&type=section&id=10.4%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This chapter provides detailed notes on key consolidated financial statement items, including significant balances for accounts receivable, contract assets, inventories, and goodwill, along with their respective impairment provisions and investments in associates - Accounts receivable had an ending book balance of **CNY 47.17 million**, with a bad debt provision of **CNY 13.47 million**; contract assets had an ending book balance of **CNY 242 million**, with a bad debt provision of **CNY 65.32 million**[192](index=192&type=chunk)[198](index=198&type=chunk) - Inventory had an ending book value of **CNY 127 million**, with **CNY 121 million** attributed to R&D projects, and an inventory impairment provision of **CNY 92.18 million** already made[219](index=219&type=chunk)[220](index=220&type=chunk) - Goodwill had an original book value of **CNY 1.704 billion**, primarily from the acquisition of Nanjing Huawei Pharma, with an impairment provision of **CNY 1.693 billion** already made, resulting in an ending book value of **CNY 11.49 million**[237](index=237&type=chunk)[238](index=238&type=chunk) - Long-term equity investments had an ending balance of **CNY 59.79 million**, representing the investment in associate company Kangyuan Huawei Pharmaceutical Co., Ltd[225](index=225&type=chunk)