[Section 1 Definitions](index=4&type=section&id=Section%201%20Definitions) [Common Terms Definitions](index=4&type=section&id=Common%20Terms%20Definitions) This section provides definitions for common terms used in the report, including key regulatory bodies and company-related entities - Key entities are defined, such as "the Company" referring to GuangYuYuan Chinese Medicine Co, Ltd, "Shennong Group" as the controlling shareholder, and "Dongsheng Group" as the former controlling shareholder[13](index=13&type=chunk) [Section 2 Company Profile and Key Financial Indicators](index=5&type=section&id=Section%202%20Company%20Profile%20and%20Key%20Financial%20Indicators) [I. Company Information](index=5&type=section&id=I.%20Company%20Information) This section outlines the basic information of GuangYuYuan Chinese Medicine Co, Ltd, including its name and legal representative - The company's Chinese name is 广誉远中药股份有限公司 (GuangYuYuan Chinese Medicine Co, Ltd), its short name is GuangYuYuan, and the legal representative is Li Xiaojun[15](index=15&type=chunk) [II. Contact Persons and Methods](index=5&type=section&id=II.%20Contact%20Persons%20and%20Methods) This section provides contact details for the company's Board Secretary and Securities Affairs Representative - The contact address for Board Secretary Tang Yun and Securities Affairs Representative Qiao Li is 26th Floor, Shanxi Wutong Building, No 129 Changfeng Street, Xiaodian District, Taiyuan City, Shanxi Province[16](index=16&type=chunk) [III. Changes in Basic Information](index=5&type=section&id=III.%20Changes%20in%20Basic%20Information) The company's registered address was changed in 2021, while other contact information remained unchanged during the reporting period - The company's registered address was changed to No 1 Guangyuyuan Road, Taigu District, Jinzhong City, Shanxi Province on January 21, 2021[17](index=17&type=chunk) - The company's office address, website, and email remained unchanged during the reporting period[17](index=17&type=chunk) [IV. Information Disclosure and Document Location](index=5&type=section&id=IV.%20Information%20Disclosure%20and%20Document%20Location) Information disclosure channels and the location for report inspection remained consistent during the reporting period - The company's designated information disclosure newspapers and website (http://wwwssecomcn) did not change during the reporting period[18](index=18&type=chunk) [V. Company Stock Profile](index=5&type=section&id=V.%20Company%20Stock%20Profile) This section details the company's A-share stock listed on the Shanghai Stock Exchange - The company's A-shares are listed on the Shanghai Stock Exchange under the stock code 600771 and the stock name GuangYuYuan[19](index=19&type=chunk) [VII. Key Accounting Data and Financial Indicators](index=6&type=section&id=VII.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In H1 2025, the company achieved significant growth in revenue, net profit, and operating cash flow, with notable improvements in earnings per share and return on equity Key Accounting Data for H1 2025 | Key Accounting Data | H1 2025 (Yuan) | H1 2024 (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 779,283,565.11 | 659,600,175.82 | 18.14 | | Total Profit | 86,627,032.40 | 72,856,582.84 | 18.90 | | Net Profit Attributable to Shareholders | 76,857,103.56 | 59,603,051.33 | 28.95 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 67,998,647.44 | 55,844,967.55 | 21.76 | | Net Cash Flow from Operating Activities | 246,058,830.26 | 162,257,697.52 | 51.65 | | Net Assets Attributable to Shareholders (End of Period) | 1,646,665,436.41 | 1,569,808,332.85 | 4.90 | | Total Assets (End of Period) | 2,453,982,054.96 | 2,275,876,460.56 | 7.83 | Key Financial Indicators for H1 2025 | Key Financial Indicators | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/Share) | 0.16 | 0.12 | 33.33 | | Diluted Earnings Per Share (Yuan/Share) | 0.16 | 0.12 | 33.33 | | Basic EPS (Excluding Non-recurring Items) (Yuan/Share) | 0.14 | 0.11 | 27.27 | | Weighted Average Return on Net Assets (%) | 4.78 | 3.91 | Increase of 0.87 percentage points | | Weighted Average ROE (Excluding Non-recurring Items) (%) | 4.23 | 3.66 | Increase of 0.57 percentage points | - **Net profit attributable to shareholders increased by 28.95%**, driven by the effective implementation of the company's "full-chain high-quality TCM" development strategy and the "1541" strategic framework, leading to an **18.14% increase in operating revenue**[22](index=22&type=chunk)[23](index=23&type=chunk) - **Net cash flow from operating activities increased by 51.65%**, primarily due to a RMB 170.58 million decrease in cash paid for goods and services[23](index=23&type=chunk) [IX. Non-recurring Profit and Loss Items and Amounts](index=7&type=section&id=IX.%20Non-recurring%20Profit%20and%20Loss%20Items%20and%20Amounts) Total non-recurring profit and loss for the period amounted to RMB 8.86 million, mainly from government grants and impairment reversals Non-recurring Profit and Loss Items for H1 2025 | Non-recurring Profit and Loss Item | Amount (Yuan) | | :--- | :--- | | Government grants included in current profit or loss | 9,256,667.14 | | Reversal of impairment provision for individually tested receivables | 1,713,453.03 | | Other non-operating income and expenses | -1,165,869.65 | | Less: Income tax impact | 623,073.95 | | Minority interest impact (after tax) | 322,720.45 | | Total | 8,858,456.12 | [Section 3 Management Discussion and Analysis](index=9&type=section&id=Section%203%20Management%20Discussion%20and%20Analysis) [I. Industry and Main Business Overview](index=9&type=section&id=I.%20Industry%20and%20Main%20Business%20Overview) The company's main business is the production and sale of TCM products across three segments, operating within a policy-driven, high-quality development environment for the TCM industry - The company's main business is the production and sale of TCM products, with a core focus on patent medicines divided into traditional TCM, boutique TCM, and wellness wine segments[29](index=29&type=chunk) - The company holds **104 drug registration certificates**, 1 health product registration certificate, 1 food license, 1 liquor license, 264 domestic trademarks, and 28 patented technologies[29](index=29&type=chunk) - The company was founded in the 20th year of the Jiajing reign of the Ming Dynasty (1541 AD), making it the oldest existing TCM enterprise and pharmaceutical brand in China[29](index=29&type=chunk) - The production techniques for core products Guilingji, Dingkundan, and Angong Niuhuang Wan have been listed as national intangible cultural heritage[29](index=29&type=chunk) - In H1 2025, the National Administration of Traditional Chinese Medicine outlined seven key tasks to promote high-quality development in the TCM industry, including improving the legal and standard systems and building a high-quality service system[34](index=34&type=chunk) - The National Healthcare Security Administration adjusted the payment restrictions for Angong Niuhuang Wan to "limited to emergency or hospitalized patients" in the National Medical Insurance Drug Catalog (2024), effective January 1, 2025[47](index=47&type=chunk) - The National Healthcare Security Administration and other departments announced that starting July 1, 2025, medical insurance fund settlements will require scanning of traceability codes at the point of sale, with full data collection required by all medical institutions from January 1, 2026[48](index=48&type=chunk) (I) Main Business The company's core business is the production and sale of patent Chinese medicines, categorized into traditional TCM, boutique TCM, and wellness wine segments - The company's core business is patent Chinese medicine, divided into traditional TCM, boutique TCM, and wellness wine segments[29](index=29&type=chunk) - The company holds **104 drug registration certificates**, 1 health product registration certificate, 1 food license, 1 liquor license, 264 domestic trademarks, and 28 patented technologies[29](index=29&type=chunk) - Its subsidiary, Shanxi GuangYuYuan, has **30 drugs listed in the National Essential Drugs List** and **62 drugs in the National Medical Insurance Catalog**[29](index=29&type=chunk) (II) Main Products and Uses The company's main products address various therapeutic areas, including internal medicine, gynecology, and neurological resuscitation Main Products and Their Uses | No | Product Name | Therapeutic Area | Indications | Category | Business Segment | | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Guilingji | Internal Medicine (Tonic) | Strengthens the body and brain, tonifies the kidney and qi, and improves appetite | TCM | Traditional TCM, Boutique TCM | | 2 | Dingkundan (Large Honeyed Pill) | Gynecology (Tonic) | Nourishes qi and blood, regulates menstruation, and relieves depression | TCM | Traditional TCM, Boutique TCM | | 3 | Dingkundan (Water-Honeyed Pill) | Gynecology (Tonic) | Nourishes qi and blood, regulates menstruation, and relieves menstrual pain | TCM | Traditional TCM | | 4 | Dingkundan (Oral Liquid) | Gynecology (Tonic) | Nourishes qi and blood, regulates menstruation, and relieves depression | TCM | Boutique TCM, Traditional TCM | | 5 | Angong Niuhuang Wan | Internal Medicine (Resuscitation) | Clears heat, detoxifies, calms fright, and opens the orifices | TCM | Traditional TCM, Boutique TCM | | 6 | Niuhuang Qingxin Wan | Internal Medicine (Resuscitation) | Clears heart-fire, resolves phlegm, calms fright, and dispels wind | TCM | Traditional TCM, Boutique TCM | | 7 | Jiawei Guilingji Jiu | Internal Medicine (Tonic) | Tonifies the brain and kidney, strengthens bodily functions, and promotes longevity | TCM | Wellness Wine | | 8 | Yuan Brand Guilingji Jiu | - | Delays aging and resists fatigue | Health Food | Wellness Wine | (III) Business Model The company employs a mixed procurement, production, and sales model tailored to different product lines and market channels - **Procurement Model**: Tendering for bulk, price-volatile raw materials; direct and targeted sourcing for scarce and restricted varieties[31](index=31&type=chunk)[32](index=32&type=chunk) - **Production Model**: Primarily "production based on sales," supplemented by safety stock and strategic reserves, strictly adhering to GMP standards and ancient processing methods[32](index=32&type=chunk) - **Sales Model**: Includes collaborative distribution, dealership, and direct sales covering wholesalers, chain pharmacies, national medicine halls, and online platforms[33](index=33&type=chunk) (IV) Industry Overview The pharmaceutical manufacturing industry faced structural differentiation in H1 2025, while the TCM sector benefited from strong policy support for high-quality development and internationalization - The pharmaceutical manufacturing industry, a strategic sector, showed a trend of "overall pressure with structural differentiation" in H1 2025[34](index=34&type=chunk) - In the final year of the "14th Five-Year Plan," the TCM industry saw strengthened top-level policy design, promoting coordinated efforts in medical insurance payment reform, quality improvement, and international standard-setting[34](index=34&type=chunk) - The company is actively establishing an internal compliance system to prevent commercial bribery risks in response to new guidelines[35](index=35&type=chunk) - The Government Work Report proposed improving drug price formation, supporting innovative drugs, and enhancing the inheritance and innovation of TCM[36](index=36&type=chunk) - The State Council issued opinions to promote high-quality development of the TCM industry, focusing on reforms across the entire industry chain[37](index=37&type=chunk)[38](index=38&type=chunk) - The company is preparing for the implementation of the newly promulgated 2025 edition of the Chinese Pharmacopoeia[42](index=42&type=chunk)[43](index=43&type=chunk) - The company is strengthening compliance management in response to new regulations on medical pricing and procurement credit evaluation[45](index=45&type=chunk) - The payment restriction for Angong Niuhuang Wan was adjusted to "limited to emergency or hospitalized patients" in the 2024 National Medical Insurance Drug Catalog[47](index=47&type=chunk)[48](index=48&type=chunk) - The company is upgrading its traceability management system to ensure real-time data connection with the medical insurance platform as required by new regulations[48](index=48&type=chunk) - The company's inheritor for the traditional preparation method of Angong Niuhuang Wan was selected as a national-level representative inheritor of intangible cultural heritage[50](index=50&type=chunk) - The company is seizing opportunities in the "silver economy" by focusing on chronic disease management and anti-aging needs[51](index=51&type=chunk) [II. Discussion and Analysis of Operations](index=18&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operations) In H1 2025, the company achieved strong growth in revenue and net profit by executing its "1541" strategy, with significant progress in marketing, brand building, and R&D - As of June 30, 2025, the company's **total assets were RMB 2.45 billion**, and net assets attributable to shareholders were RMB 1.65 billion[53](index=53&type=chunk) - During the reporting period, the company achieved **operating revenue of RMB 779 million**, a year-on-year increase of 18.14%, and **net profit attributable to shareholders of RMB 76.86 million**, up 28.95%[53](index=53&type=chunk) - **Marketing**: The company stabilized its classic medicine market while expanding into new and grassroots markets; boutique TCM expanded into high-end markets, adding 43 new terminal stores for a total of 505[54](index=54&type=chunk) - **Brand Building**: The company strengthened its brand positioning through cultural marketing, collaborations with CCTV, and active participation in industry events and new media promotion[56](index=56&type=chunk) - **Production and R&D**: The company advanced its "full-chain high-quality TCM" strategy, promoted digital factory construction, and achieved academic breakthroughs for core products like Guilingji and Dingkundan[57](index=57&type=chunk)[58](index=58&type=chunk) - **Management and Digitalization**: The company enhanced management efficiency through digital platform construction, optimized its organizational structure, and strengthened internal controls[59](index=59&type=chunk) - **Party Building Leadership**: The company strengthened political guidance, improved decision-making mechanisms, and promoted integrity and anti-corruption work[60](index=60&type=chunk) [III. Analysis of Core Competencies](index=21&type=section&id=III.%20Analysis%20of%20Core%20Competencies) The company's core competencies are rooted in its 484-year heritage, state-secret level products, unique processing techniques, and strong intellectual property portfolio - The company possesses a **484-year history of uninterrupted inheritance** and is recognized as a "China Time-honored Brand," ensuring strong brand credibility[63](index=63&type=chunk) - Core products **Guilingji and Dingkundan are state-secret level varieties**, and their production techniques are listed as national intangible cultural heritage[65](index=65&type=chunk) - The company's product efficacy is ensured by unique ancient processing techniques, combined with modern technology for standardized production[66](index=66&type=chunk) - The company maintains high product quality stability, as demonstrated by years of consistent fingerprint chromatography test results[67](index=67&type=chunk) - The company has a robust talent ecosystem for technical inheritance, led by national-level inheritors and supported by mentorship programs[68](index=68&type=chunk) - As of June 30, 2025, the company held **28 patents** and had submitted one new application during the period[70](index=70&type=chunk) - As of June 30, 2025, the company owned **264 domestic trademarks** and 40 international trademarks, with 14 new domestic trademarks added during the period[71](index=71&type=chunk) [IV. Key Operating Activities](index=24&type=section&id=IV.%20Key%20Operating%20Activities) The company's revenue grew due to increased pharmaceutical industrial income, though costs rose from higher raw material prices, while financial expenses significantly decreased (I) Main Business Analysis Revenue growth was driven by the pharmaceutical industrial segment, while rising raw material costs increased operating expenses, and financial expenses fell sharply due to ample cash flow - **Operating revenue increased by 18.14%** year-on-year, primarily driven by a 13.36% increase in pharmaceutical industrial revenue[73](index=73&type=chunk) - **Operating costs rose by 50.90%** year-on-year, mainly due to the increased cost of raw material Niuhuang (calculus bovis)[74](index=74&type=chunk) - **Selling expenses increased by 22.26%** due to higher advertising and market promotion fees[74](index=74&type=chunk) - **Administrative expenses decreased by 7.25%** mainly due to reduced employee compensation[75](index=75&type=chunk) - **R&D expenses increased by 15.5%** reflecting a greater focus on academic and scientific research innovation[75](index=75&type=chunk) - **Financial expenses decreased by 77.25%** as ample cash flow and smaller debt financing scale led to reduced interest expenses[75](index=75&type=chunk) - **Net cash flow from operating activities increased by 51.65%**, primarily due to a decrease in cash outflows from operating activities[76](index=76&type=chunk) (II) Analysis by Industry, Product, or Region The pharmaceutical industrial segment remains the largest revenue contributor, while the wellness wine business saw the fastest growth, and the Northwest region generated the highest sales Main Business by Industry for H1 2025 | Industry Segment | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin (%) | Revenue YoY Change (%) | Cost YoY Change (%) | Gross Margin YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Pharmaceutical Industrial | 696,630,670.06 | 195,623,467.22 | 71.92 | 13.36 | 43.85 | -5.95 | | Pharmaceutical Commercial | 26,965,103.62 | 17,806,248.70 | 33.97 | 26.53 | 30.09 | -1.80 | | Wellness Wine | 25,673,815.87 | 12,331,692.98 | 51.97 | 57.18 | 54.33 | 0.89 | Main Business by Product for H1 2025 | Product Segment | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin (%) | Revenue YoY Change (%) | Cost YoY Change (%) | Gross Margin YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Traditional TCM | 521,717,138.39 | 159,553,690.23 | 69.42 | 14.66 | 50.85 | -7.34 | | Boutique TCM | 174,913,531.67 | 36,069,776.99 | 79.38 | 9.66 | 19.34 | -1.67 | | Wellness Wine | 25,673,815.87 | 12,331,692.98 | 51.97 | 57.18 | 54.33 | 0.89 | Main Business by Region for H1 2025 | Region | Operating Revenue (Yuan) | Revenue YoY Change (%) | Regional Division | | :--- | :--- | :--- | :--- | | Northeast | 108,009,966.36 | 6.09 | Heilongjiang, Jilin, Liaoning, Beijing, Tianjin | | North China | 66,047,336.93 | -9.53 | Shandong, Inner Mongolia, Hebei | | East China | 142,892,429.06 | 25.14 | Shanghai, Zhejiang, Jiangsu, Fujian, Guangdong, Hainan | | Central China | 131,677,713.92 | 14.25 | Hubei, Jiangxi, Anhui, Henan, Hunan | | Northwest | 213,645,130.91 | 22.33 | Xinjiang, Gansu, Ningxia, Qinghai, Shaanxi, Shanxi | | Southwest | 60,031,908.76 | 15.51 | Guizhou, Yunnan, Chongqing, Sichuan, Tibet, Guangxi | (IV) Analysis of Assets and Liabilities The company's total assets and net assets grew, with a significant increase in cash and receivables, while inventory levels decreased Changes in Assets and Liabilities in H1 2025 | Item | Closing Balance (Yuan) | % of Total Assets | Opening Balance (Yuan) | % of Total Assets | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 342,932,516.12 | 13.97 | 116,672,133.81 | 5.13 | 193.93 | Decrease in payments for raw materials | | Prepayments | 20,972,841.01 | 0.85 | 32,508,095.07 | 1.43 | -35.48 | Decrease in prepayments for materials and goods | | Accounts Receivable | 349,735,599.62 | 14.25 | 281,038,900.81 | 12.35 | 24.44 | Increased credit extended to reputable customers | | Other Receivables | 23,430,744.10 | 0.95 | 7,803,477.67 | 0.34 | 200.26 | Increase in petty cash at period end | | Inventory | 664,796,520.76 | 27.09 | 766,947,761.39 | 33.70 | -13.32 | Decrease in raw materials and finished goods | | Short-term Borrowings | 30,144,695.43 | 1.23 | 19,948,920.17 | 0.88 | 51.11 | Increase in notes not derecognized at period end | | Contract Liabilities | 36,757,454.71 | 1.50 | 50,832,044.09 | 2.23 | -27.69 | Decrease in advances received with performance obligations | | Taxes Payable | 33,228,777.54 | 1.35 | 25,397,228.12 | 1.12 | 30.84 | Increase in VAT payable at period end | | Other Current Liabilities | 54,360,155.18 | 2.22 | 21,928,071.84 | 0.96 | 147.90 | Increase in notes not derecognized at period end | | Deferred Income | 22,662,382.50 | 0.92 | 15,274,352.81 | 0.67 | 48.37 | Increase in unrealized gains from downstream transactions | Major Restricted Assets as of Period End | Asset Item | Asset Category | Book Value (Yuan) | Reason for Restriction | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | Bank Deposits | 61,827.41 | Cash in transit | | Cash and Cash Equivalents | Bank Deposits | 26,766.20 | Frozen funds | | Notes Receivable | Notes Receivable | 70,113,218.88 | Endorsed/Discounted | | Total | | 70,201,812.49 | | (V) Investment Analysis The company's long-term equity investments slightly decreased, and one subsidiary was deregistered during the period - As of the end of the reporting period, the company's consolidated long-term equity investment was **RMB 7.27 million**, a decrease of 1.04% from the beginning of the year[85](index=85&type=chunk) - The company's subsidiary, Shaanxi Yuyuan Sheng Ecological Technology Co, Ltd, completed its business deregistration on January 2, 2025[85](index=85&type=chunk) (VII) Analysis of Major Subsidiaries and Investees The main subsidiary, Shanxi GuangYuYuan Guoyao Co, Ltd, contributed the majority of the company's net profit Financial Information of Major Subsidiary Shanxi GuangYuYuan Guoyao Co, Ltd | Company Name | Company Type | Main Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanxi GuangYuYuan Guoyao Co, Ltd | Subsidiary | Production and sale of traditional medicines, health products, and food | 45,320,000.00 | 2,121,739,847.73 | 1,227,692,870.93 | 754,976,144.21 | 103,211,473.51 | 96,325,195.08 | - The subsidiary Shaanxi Yuyuan Sheng Ecological Technology Co, Ltd has been deregistered, with no significant impact on overall operations and performance[89](index=89&type=chunk) [V. Other Disclosures](index=31&type=section&id=V.%20Other%20Disclosures) The company faces risks from raw material price volatility and market competition, which it mitigates through supply chain management and strategic marketing - The company faces risks from **raw material supply and price fluctuations**, especially for scarce natural TCM materials like natural calculus bovis, musk, and antelope horn[90](index=90&type=chunk) - The company mitigates raw material risks by broadening supply channels, strengthening supply chain management, and conducting strategic procurement[90](index=90&type=chunk) - **Intensified market competition** from leading enterprises and policy changes such as medical insurance cost control and payment reforms present challenges[91](index=91&type=chunk) - The company addresses market and policy risks by tracking industry changes, adjusting marketing strategies, and enhancing brand influence through evidence-based medical research[91](index=91&type=chunk) [Section 4 Corporate Governance, Environment, and Society](index=33&type=section&id=Section%204%20Corporate%20Governance,%20Environment,%20and%20Society) [I. Changes in Directors and Senior Management](index=33&type=section&id=I.%20Changes%20in%20Directors%20and%20Senior%20Management) There were no changes to the company's directors or senior management during the reporting period - No changes occurred among the company's directors and senior management during the reporting period[94](index=94&type=chunk) [II. Profit Distribution or Capitalization of Capital Reserve Plan](index=33&type=section&id=II.%20Profit%20Distribution%20or%20Capitalization%20of%20Capital%20Reserve%20Plan) The company has no profit distribution or capital reserve capitalization plan for the current reporting period - There is no profit distribution or capital reserve capitalization plan for this semi-annual reporting period[94](index=94&type=chunk) [IV. Environmental Information of the Company and its Major Subsidiaries](index=33&type=section&id=IV.%20Environmental%20Information%20of%20the%20Company%20and%20its%20Major%20Subsidiaries) The company's major subsidiaries strictly adhere to environmental protection regulations, ensuring all pollutant emissions meet required standards through robust pollution control facilities and regular monitoring - Subsidiary Shanxi GuangYuYuan Guoyao Co, Ltd's pollutant emissions were all within standards, with average wastewater COD concentration at approximately 292mg/L and ammonia nitrogen at 19.6mg/L[96](index=96&type=chunk) - Shanxi GuangYuYuan Guoyao Co, Ltd operates a sewage treatment station with a capacity of 15m³/h, and its air emissions comply with national standards for the pharmaceutical industry[97](index=97&type=chunk) - Subsidiary Tibet GuangYuYuan Pharmaceutical Co, Ltd's pollutant emissions were all within standards, with average wastewater CODcr concentration at approximately 15mg/L[99](index=99&type=chunk) - Subsidiary Ankang GuangYuYuan Pharmaceutical Co, Ltd's pollutant emissions were all within standards, with average wastewater CODcr concentration at approximately 43.6mg/L[101](index=101&type=chunk) - All subsidiaries have formulated and filed emergency response plans for environmental incidents and conduct regular third-party environmental monitoring[98](index=98&type=chunk)[100](index=100&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) [Section 5 Significant Matters](index=38&type=section&id=Section%205%20Significant%20Matters) [I. Fulfillment of Commitments](index=38&type=section&id=I.%20Fulfillment%20of%20Commitments) The company's controlling shareholders have strictly adhered to their commitments regarding independence, non-competition, and related-party transactions - Jinchuang Investment committed to maintaining the company's independence in assets, personnel, finance, organization, and business during its tenure as a controlling shareholder[107](index=107&type=chunk) - Both Jinchuang Investment and Shennong Group have committed to avoiding and resolving any potential business competition with the company[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) - Jinchuang Investment and Shennong Group pledged to minimize and regulate related-party transactions, ensuring fairness and protecting the interests of the company and its shareholders[107](index=107&type=chunk)[109](index=109&type=chunk) - Shennong Group committed to ensuring the company's independence in assets, personnel, finance, organization, and business[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) - Shennong Group committed not to transfer the acquired shares within twelve months after the share transfer was completed[109](index=109&type=chunk) [VII. Major Litigation and Arbitration](index=41&type=section&id=VII.%20Major%20Litigation%20and%20Arbitration) The company is involved in several major legal proceedings, including a significant lawsuit over performance compensation and various disputes related to trademark infringement and contracts - The company has filed a lawsuit against Xi'an Dongsheng Group Co, Ltd for performance commitment compensation, and the court has frozen assets worth **RMB 934 million**[111](index=111&type=chunk)[112](index=112&type=chunk) - In a trademark infringement and unfair competition dispute, a first-instance verdict found the defendant liable for unfair competition and ordered them to cease infringement and pay damages[113](index=113&type=chunk) - The company is involved in multiple sales contract disputes with parties such as Shandong Tianbao Pharmaceutical Co, Ltd and Huadong Medicine Co, Ltd, with some cases having reached a verdict or been withdrawn[114](index=114&type=chunk) - The company is involved in several lease contract disputes concerning tenants' refusal to vacate and pay occupancy fees[115](index=115&type=chunk) - In a reputation rights dispute, a court ordered the defendant to issue a public apology and pay **RMB 600,000 in damages** for spreading false information, a verdict upheld on appeal and fully enforced[116](index=116&type=chunk) [IX. Integrity Status of the Company, its Controlling Shareholders, and Actual Controllers](index=46&type=section&id=IX.%20Integrity%20Status%20of%20the%20Company,%20its%20Controlling%20Shareholders,%20and%20Actual%20Controllers) The company has an outstanding arbitration award payment of RMB 215,800 plus overdue interest - As of the end of the reporting period, the company has not yet fulfilled an arbitration award requiring a payment of **RMB 215,800** plus overdue interest[117](index=117&type=chunk) [X. Major Related-Party Transactions](index=46&type=section&id=X.%20Major%20Related-Party%20Transactions) The company engaged in routine operational transactions with related parties, including sales and procurement of goods and services, all conducted at fair prices Related-Party Transactions Not Disclosed in Interim Announcements for H1 2025 | Related Party | Relationship | Transaction Type | Transaction Content | Pricing Principle | Transaction Price | Transaction Amount (Yuan) | % of Similar Transactions | Settlement Method | Market Price | Reason for Discrepancy | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanxi Sanqiao Building Co, Ltd | Shareholder's subsidiary | Product Sales | Liquor products | Agreement | 218 Yuan/bottle | 26,160 | 0.003 | Cash | Higher than distributor price | - | | Shennong Comprehensive Services (Shanxi) Co, Ltd | Shareholder's subsidiary | Product Sales | Liquor products | Agreement | 218/208 Yuan/bottle | 23,004 | 0.003 | Cash | Higher than distributor price | - | | Shanxi Taijielong Auto Leasing Co, Ltd | Shareholder's subsidiary | Service Acceptance | Vehicle maintenance, labor dispatch, vehicle leasing | Market inquiry | 150,000 Yuan | 150,000 | 0.47 | Cash | 150k-185k Yuan | Best price | | Shennong Zhihua Biotech (Shanxi) Co, Ltd | Shareholder's subsidiary | Goods Purchase | Health products | Market inquiry | 34.64 Yuan/box | 138,560 | 0.09 | Cash | 34.64-47.06 Yuan/box | Best price | | Shanxi Provincial Food Research Institute | Shareholder's subsidiary | Service Acceptance | Liquor production technical services | Negotiation | 120,000 Yuan | 120,000 | 0.38 | Cash | Not higher than market | Authoritative, customized | | Shennong Zhihua Biotech (Shanxi) Co, Ltd | Shareholder's subsidiary | Goods Purchase | 6° Shanxi Aged Vinegar | Agreement | 6.32 Yuan/bottle | 10,744 | 0.007 | Cash | Not higher than market | - | | Total | / | / | | | | 468,468 | / | / | | | [XI. Major Contracts and Their Performance](index=48&type=section&id=XI.%20Major%20Contracts%20and%20Their%20Performance) The company provided a guarantee of RMB 8.14 million to its subsidiary, representing 0.49% of the company's net assets Guarantees Provided to Subsidiaries | Guarantor's Relationship to Company | Guarantor | Guaranteed Party | Guarantee Amount (Yuan) | Date of Guarantee | Start Date | End Date | Guarantee Type | Main Debt Status | Collateral | Fulfilled | Overdue | Overdue Amount | Counter-guarantee | Related-Party Guarantee | Relationship | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | | Shanxi GuangYuYuan Guoyao Co, Ltd | 8,140,000 | 2024-12-27 | 2024-12-27 | 2025-12-26 | Guarantee | | | No | No | 0 | | No | | | Total Guarantees to Subsidiaries in Reporting Period | | | 0 | | | | | | | | | | | | | | Total Outstanding Guarantees to Subsidiaries at Period End (B) | | | 8,140,000 | | | | | | | | | | | | | | Total Guarantee Amount (A+B) | | | 8,140,000 | | | | | | | | | | | | | | Total Guarantee Amount as % of Net Assets | | | 0.49 | | | | | | | | | | | | | [XIII. Other Significant Matters](index=50&type=section&id=XIII.%20Other%20Significant%20Matters) The controlling shareholder initiated a share repurchase plan and completed a share transfer, solidifying its direct ownership without changing the company's control structure - The company's controlling shareholder, Shennong Technology Group, initiated a plan on August 26, 2024, to increase its holding of the company's A-shares by **RMB 50 million to RMB 100 million** within 12 months[124](index=124&type=chunk) - As of December 31, 2024, Shennong Technology Group held 14.61% of the company's voting rights through a delegation agreement and directly owned 0.56% of the shares[125](index=125&type=chunk) - On December 19, 2024, Shennong Technology Group signed a share transfer agreement with Jinchuang Investment Co, Ltd to acquire its 14.61% stake and terminate the voting rights delegation[125](index=125&type=chunk) - As of March 31, 2025, the share transfer was completed, with Shennong Technology Group directly holding **15.17%** of the company's shares; the controlling shareholder and actual controller remain unchanged[125](index=125&type=chunk) [Section 6 Changes in Share Capital and Shareholders](index=51&type=section&id=Section%206%20Changes%20in%20Share%20Capital%20and%20Shareholders) [I. Changes in Share Capital](index=51&type=section&id=I.%20Changes%20in%20Share%20Capital) The company's total number of shares and share capital structure did not change during the reporting period - The company's total number of shares and share capital structure remained unchanged during the reporting period[127](index=127&type=chunk) [II. Shareholders](index=51&type=section&id=II.%20Shareholders) As of the period end, the company had 63,497 shareholders, with Shennong Technology Group being the largest shareholder holding 15.17% - As of the end of the reporting period, the total number of common shareholders was **63,497**[128](index=128&type=chunk) Top Ten Shareholders as of Period End | Shareholder Name | Change During Period | Shares Held at Period End (Shares) | Ownership (%) | Restricted Shares | Pledged, Marked, or Frozen Status | Shareholder Type | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shennong Technology Group Co, Ltd | 71,508,968 | 74,233,468 | 15.17 | 0 | None | State-owned legal entity | | Jiang Shibo | 0 | 8,190,200 | 1.67 | 0 | None | Domestic individual | | Hong Kong Securities Clearing Company Ltd | 4,006,983 | 5,615,103 | 1.15 | 0 | None | Other | | China Merchants Bank - Southern CSI 1000 ETF | 467,400 | 4,513,892 | 0.92 | 0 | None | Other | | Xi'an Dongsheng Group Co, Ltd | 0 | 4,401,568 | 0.9 | 0 | Frozen 4,401,568 | Domestic non-state-owned entity | | China Merchants Bank - Huaxia CSI 1000 ETF | 496,100 | 2,663,900 | 0.54 | 0 | None | Other | | ICBC - Lion Pioneer Hybrid Fund | 2,651,800 | 2,651,800 | 0.54 | 0 | None | Other | | Tang Quanzheng | 0 | 2,462,244 | 0.5 | 0 | None | Domestic individual | | Wang Ziquan | 477,700 | 2,435,900 | 0.5 | 0 | None | Domestic individual | | China Construction Bank - HFT CSI TCM ETF | 110,300 | 2,255,800 | 0.46 | 0 | None | Other | - Shennong Technology Group now directly holds 74,233,468 shares, representing **15.17% of the total share capital**, after a share transfer and the termination of a voting rights delegation, with no change in the company's controlling shareholder or actual controller[131](index=131&type=chunk) [Section 7 Bond-related Matters](index=54&type=section&id=Section%207%20Bond-related%20Matters) [I. Corporate Bonds and Non-financial Enterprise Debt Financing Instruments](index=54&type=section&id=I.%20Corporate%20Bonds%20(including%20Enterprise%20Bonds)%20and%20Non-financial%20Enterprise%20Debt%20Financing%20Instruments) The company had no corporate bonds or non-financial enterprise debt financing instruments during the reporting period - During the reporting period, the company had no corporate bonds or non-financial enterprise debt financing instruments[134](index=134&type=chunk) [II. Convertible Corporate Bonds](index=54&type=section&id=II.%20Convertible%20Corporate%20Bonds) The company had no convertible corporate bonds during the reporting period - During the reporting period, the company had no convertible corporate bonds[134](index=134&type=chunk) [Section 8 Financial Report](index=55&type=section&id=Section%208%20Financial%20Report) [II. Financial Statements](index=55&type=section&id=II.%20Financial%20Statements) This section presents the company's consolidated and parent company financial statements for the first half of 2025, detailing its financial position, performance, and cash flows - The consolidated balance sheet shows **total assets of RMB 2.45 billion** and total equity attributable to parent company owners of RMB 1.65 billion as of June 30, 2025[137](index=137&type=chunk) - The consolidated income statement shows **total operating revenue of RMB 779.28 million** and net profit attributable to parent company shareholders of RMB 76.86 million for H1 2025[143](index=143&type=chunk)[144](index=144&type=chunk) - The consolidated cash flow statement shows **net cash flow from operating activities of RMB 246.06 million** for H1 2025[149](index=149&type=chunk) [III. Company Basic Information](index=73&type=section&id=III.%20Company%20Basic%20Information) The company evolved from an aluminum producer to a pharmaceutical enterprise, with its ultimate controller being the Shanxi Provincial SASAC - The company was formerly Qinghai Tongren Aluminum Co, Ltd and was listed on the Shanghai Stock Exchange on November 5, 1996[162](index=162&type=chunk) - The company was renamed Dongsheng Technology Co, Ltd in 2000 and subsequently GuangYuYuan Chinese Medicine Co, Ltd on July 2, 2013[162](index=162&type=chunk)[163](index=163&type=chunk) - The company's main business scope has changed to the production, wholesale, retail, and R&D of various pharmaceutical products[162](index=162&type=chunk)[168](index=168&type=chunk) - The company's registered capital is RMB 489,491,141.00, and the ultimate controller is the State-owned Assets Supervision and Administration Commission of the Shanxi Provincial People's Government[166](index=166&type=chunk)[167](index=167&type=chunk) [IV. Basis of Preparation for Financial Statements](index=75&type=section&id=IV.%20Basis%20of%20Preparation%20for%20Financial%20Statements) The financial statements are prepared on a going concern basis in accordance with China's Accounting Standards for Business Enterprises and relevant regulations - These financial statements are prepared on a going concern basis and comply with the requirements of the Accounting Standards for Business Enterprises[169](index=169&type=chunk)[170](index=170&type=chunk)[172](index=172&type=chunk) [V. Significant Accounting Policies and Estimates](index=75&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the key accounting policies and estimates for financial instruments, inventory, fixed assets, revenue recognition, and other significant items - The Group's specific accounting policies and estimates cover bad debt provisions for receivables, inventory write-downs, fixed asset depreciation, intangible asset amortization, and revenue recognition[171](index=171&type=chunk) - Financial assets are classified as measured at amortized cost, fair value through other comprehensive income, or fair value through profit or loss[188](index=188&type=chunk) - Inventory is measured at the lower of cost and net realizable value, with write-down provisions based on the remaining shelf life of pharmaceuticals[221](index=221&type=chunk)[222](index=222&type=chunk) - Fixed assets are depreciated using the straight-line method over their estimated useful lives, such as 10-40 years for buildings and 10-12 years for machinery[243](index=243&type=chunk) - Intangible assets, including land use rights and software, are measured at cost and amortized on a straight-line basis over their useful lives[248](index=248&type=chunk)[250](index=250&type=chunk) - Revenue is recognized when the customer obtains control of the goods or services, fulfilling the performance obligation in the contract[267](index=267&type=chunk) - Government grants are classified as asset-related or income-related and are recognized as deferred income or in the current profit or loss accordingly[277](index=277&type=chunk)[278](index=278&type=chunk) - The adoption of Interpretation No 18 of the Accounting Standards for Business Enterprises, effective December 31, 2024, is not expected to have a material impact on the Group's financial statements[297](index=297&type=chunk) [VI. Taxation](index=103&type=section&id=VI.%20Taxation) The company is subject to various taxes and benefits from preferential tax policies, including reduced corporate income tax rates for high-tech enterprises and operations in designated regions Main Taxes and Tax Rates | Tax Type | Tax Base | Tax Rate (%) | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Value-added amount | 0.00, 1.00, 3.00, 5.00, 6.00, 9.00, 13.00 | | Consumption Tax | Health wine sales revenue | 10.00 | | Consumption Tax | White liquor (Baijiu) | Composite: 20% ad valorem, 0.5 Yuan/500ml specific | | Property Tax | Based on original value (less 20-30%) or rental income | 1.20, 12.00 | | Urban Maintenance and Construction Tax | Payable turnover tax | 7.00 | | Education Surcharge | Payable turnover tax | 3.00 | | Local Education Surcharge | Payable turnover tax | 2.00 | | Corporate Income Tax (CIT) | Taxable income | 25.00, 15.00 | Entities with Different Corporate Income Tax Rates | Taxpayer Name | Income Tax Rate (%) | | :--- | :--- | | The Company | 25 | | Shanxi GuangYuYuan Guoyao Co, Ltd | 15 | | Tibet GuangYuYuan Pharmaceutical Co, Ltd | 15 | | Lhasa Guilingji Liquor Co, Ltd | 15 | | Hainan Zhiliaoyoufang Medical Technology Co, Ltd | 15 | | Shaanxi Dongsheng Pharmaceutical Co, Ltd | 25 | | Beijing Xinglin Yuyuan Technology Co, Ltd | 25 | | Ankang GuangYuYuan Pharmaceutical Co, Ltd | 15 | | Beijing GuangYuYuan Exhibition Co, Ltd | 25 | | Shanxi GuangYuYuan Liquor Marketing Co, Ltd | 25 | - Shanxi GuangYuYuan Guoyao Co, Ltd and Ankang GuangYuYuan Pharmaceutical Co, Ltd, as high-tech enterprises, are subject to a **15% CIT rate** in 2025[300](index=300&type=chunk) - Tibet GuangYuYuan Pharmaceutical Co, Ltd and Lhasa Guilingji Liquor Co, Ltd benefit from the Western Development Policy, paying a reduced **15% CIT rate** in 2025[301](index=301&type=chunk) - Hainan Zhiliaoyoufang Medical Technology Co, Ltd benefits from the Hainan Free Trade Port policy, applying a **15% CIT rate** in 2025[301](index=301&type=chunk) - Several subsidiaries providing medical services enjoy a **VAT exemption**[302](index=302&type=chunk) - Some subsidiaries qualify as small-scale VAT taxpayers, benefiting from exemptions or a reduced 1% tax rate[303](index=303&type=chunk) - Shanxi GuangYuYuan Guoyao Co, Ltd, as an advanced manufacturing enterprise, benefits from a 5% additional VAT deduction policy[303](index=303&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=105&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed breakdowns and explanations for key items in the consolidated financial statements, highlighting significant balances and changes Cash and Cash Equivalents at Period End | Item | Closing Balance (Yuan) | | :--- | :--- | | Cash on hand | 11,282.90 | | Bank deposits | 341,958,327.47 | | Other cash equivalents | 962,905.75 | | Total | 342,932,516.12 | - The closing balance of **accounts receivable** was RMB 637.11 million, with a bad debt provision of RMB 287.38 million, resulting in a net book value of RMB 349.74 million[318](index=318&type=chunk) - The closing book value of **inventory** was RMB 664.80 million, comprising RMB 382.54 million in raw materials and RMB 222.24 million in finished goods[351](index=351&type=chunk) - The closing book value of **fixed assets** was RMB 608.81 million, of which buildings and structures accounted for RMB 553.29 million[371](index=371&type=chunk) - The closing balance of **short-term borrowings** was RMB 30.14 million, mainly consisting of supply chain notes and discounted bills[405](index=405&type=chunk) - The closing balance of **accounts payable** was RMB 57.03 million, primarily for goods, engineering, and equipment[407](index=407&type=chunk) - The closing balance of **contract liabilities** was RMB 36.76 million, mainly representing advance payments for product sales[410](index=410&type=chunk) - The closing balance of **employee benefits payable** was RMB 35.49 million, including short-term compensation and post-employment benefits[415](index=415&type=chunk) - The closing balance of **other payables** was RMB 470.11 million, primarily consisting of current accounts and marketing expenses[427](index=427&type=chunk) [VIII. R&D Expenditures](index=151&type=section&id=VIII.%20R&D%20Expenditures) The company's R&D expenditure totaled RMB 20.72 million, a 15.5% year-on-year increase, all of which was expensed R&D Expenditure for H1 2025 | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Direct Inputs | 8,048,297.54 | 4,998,048.28 | | Personnel Costs | 10,530,982.23 | 10,739,523.08 | | Depreciation | 1,708,726.74 | 1,656,041.54 | | Other Related Expenses | 431,718.48 | 546,033.01 | | Total | 20,719,724.99 | 17,939,645.91 | | Of which: Expensed R&D | 20,719,724.99 | 17,939,645.91 | | Capitalized R&D | | | - Total R&D expenditure for the period was **RMB 20.72 million**, all of which was expensed, representing a **15.5% increase** from the prior period[495](index=495&type=chunk) [IX. Changes in Consolidation Scope](index=152&type=section&id=IX.%20Changes%20in%20Consolidation%20Scope) There were no changes in the company's consolidation scope due to business combinations, disposals, or reverse acquisitions during the reporting period - During the reporting period, there were no changes in the consolidation scope from business combinations under common or non-common control, reverse acquisitions, or disposal of subsidiaries[496](index=496&type=chunk)[497](index=497&type=chunk) [X. Interests in Other Entities](index=153&type=section&id=X.%20Interests%20in%20Other%20Entities) This section details the company's interests in its subsidiaries and associates, including key financial information for its significant non-wholly-owned subsidiary Composition of the Enterprise Group | Subsidiary Name | Main Place of Business | Registered Capital (Yuan) | Business Nature | Direct Holding (%) | Indirect Holding (%) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanxi GuangYuYuan Guoyao Co, Ltd | Jinzhong, Shanxi | 45,320,000.00 | Production and sale of pharmaceuticals | 96.03 | | Common control combination | | Shaanxi Dongsheng Pharmaceutical Co, Ltd | Xi'an, Shaanxi | 39,000,000.00 | Wholesale, retail, R&D of pharmaceuticals | 98.97 | | Non-common control combination | | Beijing Xinglin Yuyuan Technology Co, Ltd | Beijing | 1,000,000.00 | Technology and health consulting | 60.00 | | Establishment | | Ankang GuangYuYuan Pharmaceutical Co, Ltd | Ankang, Shaanxi | 60,000,000.00 | TCM cultivation and processing | 85.00 | | Establishment | | Beijing GuangYuYuan Exhibition Co, Ltd | Beijing | 1,000,000.00 | Exhibition services and drug retail | 80.00 | 20.00 | Non-common control combination | | Hainan Zhiliaoyoufang Medical Technology Co, Ltd | Chengmai, Hainan | 1,000,000.00 | Health consulting, medical services | 99.00 | | Establishment | | Shanxi GuangYuYuan Liquor Marketing Co, Ltd | Taiyuan, Shanxi | 2,000,000.00 | Retail | 100.00 | | Establishment | Financial Information of Significant Non-Wholly-Owned Subsidiary | Subsidiary Name | Minority Interest (%) | Profit/Loss Attributable to Minority Shareholders (Yuan) | Dividends Declared to Minority Shareholders (Yuan) | Minority Interest Balance at Period End (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Shanxi GuangYuYuan Guoyao Co, Ltd | 3.97 | 3,922,349.08 | 1,191,540.00 | -30,915,371.86 | Summarized Financial Information of Insignificant Joint Ventures and Associates | Item | Closing Balance / Current Period Amount (Yuan) | Opening Balance / Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Associates: | | | | Total book value of investments | 7,272,444.52 | 7,349,224.21 | | --Net profit | 763,636.18 | -986,502.30 | | --Total comprehensive income | 763,636.18 | -986,502.30 | Excess Losses of Joint Ventures or Associates | JV or Associate Name | Cumulative Unrecognized Losses (Opening) (Yuan) | Unrecognized Loss for the Period (Yuan) | Cumulative Unrecognized Losses (Closing) (Yuan) | | :--- | :--- | :--- | :--- | | Jiangxi GuangYuYuan Industrial Co, Ltd | -412,406.69 | -81,598.30 | -494,004.99 | | Inner Mongolia GuangYuYuan Health Technology Co, Ltd | -1,804,408.76 | -55,900.00 | -1,860,308.76 | | Hangzhou GuangYuYuan Trading Co, Ltd | -5,047,452.63 | -4,095.61 | -5,051,548.24 | [XI. Government Grants](index=157&type=section&id=XI.%20Government%20Grants) The company recognized a total of RMB 9.39 million in government grants, with a closing balance of RMB 12.19 million in deferred income from asset-related grants Liabilities Involving Government Grants | Financial Statement Item | Opening Balance (Yuan) | New Grants (Yuan) | Recognized in Non-operating Income (Yuan) | Recognized in Other Income (Yuan) | Other Changes (Yuan) | Closing Balance (Yuan) | Asset/Income-Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 12,926,728.97 | | | 735,739.94 | | 12,190,989.03 | Asset-related | | Total | 12,926,728.97 | | | 735,739.94 | | 12,190,989.03 | / | Government Grants Recognized in Current Profit or Loss | Type | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Asset-related | 735,739.94 | 735,739.94 | | Income-related | 8,652,058.74 | 14,410,449.34 | | Total | 9,387,798.68 | 15,146,189.28 | [XII. Financial Instrument Risks](index=158&type=section&id=XII.%20Financial%20Instrument%20Risks) The company manages market, credit, and liquidity risks through established control systems and has no significant exposure to currency or interest rate risks - The Group is exposed to **market risk** (such as commodity price risk), **credit risk**, and **liquidity risk**[511](index=511&type=chunk) - As of June 30, 2025, the Group had **no foreign currency monetary items or interest-bearing liabilities**, thus having no exposure to exchange rate or interest rate risk[512](index=512&type=chunk)[513](index=513&type=chunk)[523](index=523&type=chunk) - The company controls credit risk through credit limit management and blacklist systems, and manages liquidity risk by analyzing its liability structure and maintaining credit facilities with financial institutions[517](index=517&type=chunk)[520](index=520&type=chunk) - The top five customers account for **41.13%** of the total accounts receivable and contract assets, with a combined balance of RMB 261.98 million[518](index=518&type=chunk) Maturity Analysis of Financial Liabilities by Undiscounted Contractual Obligations | Item | Within 1 Year (Yuan) | 1-3 Years (Yuan) | Over 3 Years (Yuan) | Total (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Short-term Borrowings | 30,144,695.43 | | | 30,144,695.43 | | Accounts Payable | 57,025,534.94 | | | 57,025,534.94 | | Other Payables | 471,303,177.23 | | | 471,303,177.23 | | Non-current Liabilities Due within One Year | 14,042,077.02 | | | 14,042,077.02 | | Other Current Liabilities - Underecognized Notes | 50,108,523.45 | | | 50,108,523.45 | | Lease Liabilities | | 15,314,478.55 | 16,401,102.84 | 31,715,581.39 | | Total | 622,624,008.07 | 15,314,478.55 | 16,401,102.84 | 654,339,589.46 | Financial Asset Transfer | Transfer Method | Nature of Transferred Asset | Amount Transferred (Yuan) | Derecognition Status | Basis for Derecognition | | :--- | :--- | :--- | :--- | :--- | | Note Endorsement/Discounting | Notes Receivable | 70,113,218.88 | Not Derecognized | Substantially all risks and rewards, including default risk, are retained | | Note Endorsement/Discounting | Receivables Financing | 169,160,943.76 | Derecognized | Substantially all risks and rewards have been transferred | | Total | / | 239,274,162.64 | / | / | [XIII. Fair Value Disclosures](index=161&type=section&id=XIII.%20Fair%20Value%20Disclosures) The company's assets measured at fair value primarily consist of receivables financing and other equity investments, with their valuation methods and levels disclosed Fair Value of Assets Measured at Fair Value at Period End | Item | Level 1 Fair Value (Yuan) | Level 2 Fair Value (Yuan) | Level 3 Fair Value (Yuan) | Total (Yuan) | | :--- | :--- | :--- | :--- | :--- | | ◆ Receivables Financing | | 48,156,898.51 | | 48,156,898.51 | | ◆ Other Equity Investments | | | 7,341,670.46 | 7,341,670.46 | | Total Assets at Fair Value | | 48,156,898.51 | 7,341,670.46 | 55,498,568.97 | - The company's receivables financing, measured at fair value through other comprehensive income, is classified as **Level 2** fair value as its book value approximates fair value due to short maturity and low credit risk[532](index=532&type=chunk) - Other equity investments not traded in an active market are classified as **Level 3** fair value, with net assets used as the best estimate of their fair value[533](index=533&type=chunk) - The book value of financial assets and liabilities measured at amortized cost is not materially different from their fair value[534](index=534&type=chunk) [XIV. Related Parties and Transactions](index=163&type=section&id=XIV.%20Related%20Parties%20and%20Transactions) The company engaged in various transactions with related parties, including procurement, sales, and guarantees, with details of balances outstanding at period end - The ultimate controlling party of the enterprise is the **State-owned Assets Supervision and Administration Commission of the Shanxi Provincial People's Government**[536](index=536&type=chunk) Related-Party Purchases of Goods/Services in H1 2025 | Related Party | Transaction Content | Current Period Amount (Yuan) | Approved Transaction Limit (Yuan) | Exceeded Limit | Prior Period Amount (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Taigu Guangshengkang Medical Packaging Co, Ltd | Purchase of goods | 3,006,442.48 | N/A | N/A | 2,182,053.10 | | Shennong Agricultural Big Data (Shanxi) Co, Ltd | Purchase of goods | | N/A | N/A | 496,133.77 | | Shennong Zhihua Biotech (Shanxi) Co, Ltd | Purchase of goods | | N/A | N/A | 8,962.17 | | Shanxi Taijielong Auto Leasing Co, Ltd | Acceptance of services | 51,048.67 | N/A | N/A | | | Shennong Human Resources (Shanxi) Co, Ltd | Acceptance of services | 3,185.84 | N/A | N/A | | | Shanxi Sanqiao Building Co, Ltd | Acceptance of services | 71,644.25 | N/A | N/A | | | Total | | 3,132,321.24 | | | 2,687,149.04 | Related-Party Sales of Goods/Services in H1 2025 | Related Party | Transaction Content | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | :--- | | Shennong Zhihua Biotech (Shanxi) Co, Ltd | Sale of goods | 9,555.79 | - | | Shanxi Sanqiao Building Co, Ltd | Sale of goods | 23,150.44 | - | | Jiangxi GuangYuYuan Industrial Co, Ltd | Sale of goods | 991,371.35 | 1,479,728.48 | | Xinjiang GuangYuYuan Investment Management Co, Ltd* | Sale of goods | 847,024.41 | 1,434,276.08 | | GuangYuYuan (Changzhou) TCM Clinic Co, Ltd | Sale of goods | 760,672.57 | 847,253.08 | | Xi'an Baoyirong Pharmaceutical Co, Ltd | Sale of goods | 998,652.19 | 212,421.22 | | Baotou GuangYuYuan Pharmacy Co, Ltd | Sale of goods | 723,897.34 | - | | Shenzhen GuangYuYuan Enterprise Management Co, Ltd* | Sale of goods | 4,657,869.04 | 5,628,403.55 | | Jilin GuangYuYuan Investment Management Co, Ltd | Sale of goods | 1,252,333.09 | 1,084,945.47 | | Shanxi GuangYuYuan Guilingji Liquor Co, Ltd | Sale of goods | 312,045.16 | 588,707.96 | | Erdos GuangYuYuan Chinese Medicine Co, Ltd* | Sale of goods | 557,277.85 | 767,284.24 | | Total | | 11,390,958.97 | 25,799,091.71 | Related-Party Guarantees | Guaranteed Party | Guarantee Amount (Yuan) | Start Date | End Date | Guarantee Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Shanxi GuangYuYuan Guoyao Co, Ltd | 8,140,000.00 | 2024-12-27 | 2025-12-26 | No | Receivables from Related Parties | Item | Related Party | Closing Balance (Yuan) | Bad Debt Provision (Yuan) | Opening Balance (Yuan) | Bad Debt Provision (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable | Beijing GuangYuYuan Medical Investment Consulting | 429,605.53 | 429,605.53 | 429,605.53 | 429,605.53 | | Accounts Receivable | Hangzhou GuangYuYuan Trading Co, Ltd | 12,569,008.76 | 12,569,008.76 | 12,569,008.76 | 12,569,008.76 | | Accounts Receivable | Jiangsu GuangYuYuan Health Management | 5,200.00 | 5,200.00 | 5,200.00 | 5,200.00 | | Accounts Receivable | Shanxi GuangYuYuan Guilingji Liquor Co, Ltd | 1,639,095.73 | 1,632,255.73 | 1,631,895.73 | 1,631,895.73 | | Accounts Receivable | Shaanxi GuangYuYuan Guilingji Trading | 2,176,382.30 | 2,176,382.30 | 2,176,382.30 | 2,176,382.30 | | Accounts Receivable | Shaanxi GuangYuYuan Guoyaotang Pharmaceutical | 245,742.81 | 245,742.81 | 245,742.81 | 245,742.81 | | Accounts Receivable | Xi'an Yanta GuangYuYuan TCM Hospital | 2,864,585.30 | 2,324,368.76 | 2,871,382.30 | 1,237,707.57 | | Accounts Receivable | Zhejiang GuangYuYuan Health Technology | 106,020.00 | 106,020.00 | 106,020.00 | 106,020.00 | | Accounts Receivable | Shanxi GuangYuYuan Guoyaotang Pharmacy Chain | 2,103,266.59 | 2,103,266.59 | 2,103,266.59 | 2,103,266.59 | | Accounts Receivable | Ningbo GuangYuYuan Medical Retail | 1,785,858.00 | 1,785,858.00 | 1,785,858.00 | 1,785,858.00 | | Accounts Receivable | Hohhot GuangYuYuan Pharmaceutical | 1,722,707.09 | 1,722,707.09 | 1,722,707.09 | 1,722,707.09 | | Accounts Receivable | Baotou GuangYuYuan Pharmacy Co, Ltd | 559,912.00 | 559,912.00 | 494,860.00 | 494,860.00 | | Accounts Receivable | Shenzhen GuangYuYuan Enterprise Management | 408,684.00 | 20,434.20 | 27,972.00 | 1,118.88 | | Accounts Receivable | Xinjiang GuangYuYuan Investment Management | 14,592.00 | 729.60 | | | | Accounts Receivable | Erdos GuangYuYuan Chinese Medicine Co, Ltd | 484,440.00 | 24,222.00 | | | | Other Receivables | Hangzhou GuangYuYuan Trading Co, Ltd | 808,498.00 | 808,498.00 | 808,498.00 | 808,498.00 | | Other Receivables | Inner Mongolia GuangYuYuan Health Technology | 650,000.00 | 650,000.00 | 650,000.00 | 650,000.00 | Payables to Related Parties | Item | Related Party | Closing Balance (Yuan) | Opening Balance (Yuan) | | :--- | :--- | :--- | :--- | | Accounts Payable | Taigu Guangshengkang Medical Packaging | 1,965,857.13 | 2,307,839.10 | | Contract Liabilities | GuangYuYuan (Xiamen) Health Management | 273,584.91 | 273,584.91 | | Contract Liabilities | Harbin GuangYuYuan Investment Management | 264,150.94 | 264,150.94 | | Contract Liabilities | Hebei GuangYuYuan Medical Technology | 943,396.23 | 943,396.23 | | Contract Liabilities | Jiangxi GuangYuYuan Industrial Co, Ltd | 1,495.91 | 58,938.05 | | Contract Liabilities | Shandong GuangYuYuan Medical Chain | 973,742.14 | 973,742.14 | | Contract Liabilities | Shaanxi GuangYuYuan Guilingji Trading | 20,434.51 | 20,434.51 | | Contract Liabilities | Xinjiang GuangYuYuan Investment Management | 384,569.91 | 457,631.86 | | Contract Liabilities | Shaanxi Jinhua GuangYuYuan Pharmaceutical | 377,358.49 | 377,358.49 | | Contract Liabilities | Zhejiang GuangYuYuan Health Technology | 273,584.91 | 273,584.91 | | Contract Liabilities | Shanghai Guangshengyuan Health Management | 939.82 | 49,037.17 | | Contract Liabilities | Ningbo GuangYuYuan Medical Retail | 63,844.38 | 63,844.38 | | Contract Liabilities | GuangYuYuan (Shanghai) Guilingji Liquor | 59,734.51 | 59,734.51 | | Contract Liabilities | Shanxi GuangYuYuan Guilingji Liquor Co, Ltd | 6,371.68 | 6,371.68 | | Other Payables | Shaanxi GuangYuYuan Guilingji Trading | 530,000.00 | 530,000.00 | | Other Payables | Xinjiang GuangYuYuan Investment Management | 600,129.78 | 600,129.78 | | Other Payables | Shanxi GuangYuYuan Guilingji Liquor Co, Ltd | 1,000,000.00 | 1,000,000.00 | | Other Payables | Shennong Technology Group Co, Ltd | 1,650,898.01 | 1,159,605.88 | | Other Payables | Shenzhen GuangYuYuan Enterprise Management | 600,000.00 | 600,000.00 | | Other Payables | Jiangsu GuangYuYuan Health Management | 100,000.00 | 500,000.00 | | Other Payables | Erdos GuangYuYuan Chinese Medicine Co, Ltd | 100,000.00 | | | Other Payables | Hangzhou GuangYuYuan Trading Co, Ltd | 600,000.00 | 600,000.00 | | Other Payables | Xi'an Yanta GuangYuYuan TCM Hospital | 1,800,000.00 | 1,800,000.00 | [XVI. Commitments and Contingencies](index=170&type=section&id=XVI.%20Commitments%20and%20Contingencies) The company has no significant commitments to disclose but is involved in a major lawsuit over performance compensation and faces potential litigation related to a prior administrative penalty - As of June 30, 2025, the Group has no significant commitments to disclose[550](index=550&type=chunk) - The company has initiated a lawsuit against Xi'an Dongsheng Group Co, Ltd over a performance commitment dispute, and the court has frozen assets worth **RMB 933.59 million**[552](index=552&type=chunk) - The company received an Administrative Penalty Decision from the CSRC Shanxi Bureau on April 10, 2024, but has not yet received any legal documents regarding investor lawsuits for securities misrepresentation[552](index=552&type=chunk) [XVII. Subsequent Events](index=171&type=section&id=XVII.%20Subsequent%20Events) There are no other significant subsequent events to report as of the financial report's issuance date - As of the issuance date of this financial report, the Group has no other significant subsequent events to report[554](index=554&type=chunk) [XX. Supplementary Information](index=183&type=section&id=XX.%20Supplementary%20Information) This section provides a breakdown of non-recurring profit and loss items and details on the calculation of return on net assets and earnings per share Details of Non-recurring Profit and Loss for H1 2025 | Item | Amount (Yuan) | | :--- | :--- | | Government grants included in current profit or loss | 9,256,667.14 | | Reversal of impairment provision for individually tested receivables | 1,713,453.03 | | Other non-operating income and expenses | -1,165,869.65 | | Less: Income tax impact | 623,073.95 | | Minority interest impact (after tax) | 322,720.45 | | Total | 8,858,456.12 | Return on Net Assets and Earnings Per Share for H1 2025 | Profit for the Period | Weighted Average ROE (%) | Basic EPS (Yuan) | Diluted EPS (Yuan) | | :--- | :--- | :--- | :--- | | Net profit attributable to common shareholders | 4.78 | 0.16 | 0.16 | | Net profit attributable to common shareholders (excluding non-recurring items) | 4.23 | 0.14 | 0.14 |

报告期内，归属于上市公司股东的净利润较上年同期增加28.95%，主要是公司以"增长"为锚点，围 绕"全产业链打造高品质中药"发展战略和"1541"战略框架，坚持"产品为纲、渠道为王、科技为本、品 牌为魂"的发展思路，举全公司之力强化、支持与服务经营工作，以卓越经营成效推动公司持续稳健增 长，营业收入较上年同比增加18.14%。 格隆汇8月18日丨广誉远(600771.SH)公布2025年半年度报告，报告期实现营业收入7.79亿元，同比增长 18.14%；归属于上市公司股东的净利润7685.71万元，同比增长28.95%；归属于上市公司股东的扣除非 经常性损益的净利润6799.86万元，同比下降21.76%；基本每股收益0.16元。 ...

广誉远公告，2025年上半年营业收入7.79亿元，同比增长18.14%。净利润7685.71万元，同比增长 28.95%。 ...

Group 1 - The stock price of Guangyuyuan (600771) closed at 21.91 yuan on August 15, 2025, with an increase of 1.67% and a turnover rate of 2.89% [1] - The trading volume was 141,500 shares, resulting in a total transaction amount of 309 million yuan [1] - On the same day, the net inflow of main funds was 10.659 million yuan, accounting for 3.45% of the total transaction amount [3][4] Group 2 - The company has received inquiries from investors regarding its plans to use capital reserves to cover losses, as several other companies have already announced similar intentions [1] - The company’s secretary indicated that any matters requiring disclosure will be addressed in company announcements [2][1] - The capital reserve compensation details have been fully implemented, with eight listed companies already announcing their plans to use capital reserves for loss compensation [1]

金融界消息 截至2025年8月15日收盘，广誉远（600771）报收于21.91元，上涨1.67%，换手率2.89%， 成交量14.15万手，成交金额3.09亿元。 资金流向方面，今日主力资金净流入1065.90万元，占比成交额3.45%。其中，超大单净流出796.80万 元、占成交额2.58%，大单净流入1862.70万元、占成交额6.02%，中单净流出流出765.56万元、占成交 额2.48%，小单净流出300.34万元、占成交额0.97%。 广誉远最新一期业绩显示，截至2025一季报，公司营业总收入4.17亿元、同比增长21.48%，归属净利润 6358.43万元，同比增长53.94%，扣非净利润6364.12万元，同比增长31.24%，流动比率2.158、速动比率 1.134、资产负债率31.11%。 天眼查商业履历信息显示，广誉远中药股份有限公司，成立于1996年，位于晋中市，是一家以从事医药 制造业为主的企业。企业注册资本48949.1141万人民币，实缴资本7150.9万人民币。公司法定代表人为 李晓军。 通过天眼查大数据分析，广誉远中药股份有限公司共对外投资了10家企业，参与招投标项目36次， ...

据各类财经网站数据显示，今日三大指数集体呈下滑趋势，其中上证指数下跌0.46%，深证成指下跌 0.87%，创业板指下跌1.08%。受大盘影响，山西板块今日整体表现疲软，下跌1.96%。 山西上市企业今日突出表现： 今日山西板块有2只股票在整体下跌趋势中逆风翻盘，分别为：广誉远（600771）涨幅为1.08%；北方 铜业（000737）上涨0.43%。 广誉远（股票代码：600771） 北方铜业（股票代码：000737） 资料显示，广誉远是现存历史最悠久的中药企业之一。其前身广盛号药店诞生于明嘉靖二十年（公元 1541年）。2006年，广誉远被认定为首批"中华老字号"。2021年，广誉远重回山西国资体系，通过践 行"全产业链打造高品质中药"的发展战略，以"做高品质中药引领者"为使命愿景，以振兴中医药产业为 己任，正在成为具有一流中医药产品力、品牌力、组织力、创新力的旗舰企业之一。 北方铜业股份有限公司成立于2002年12月,是我国华北地区最大的铜生产企业。2020年6月，北方铜业与 上市公司南风化工集团股份有限公司进行重大资产重组，并于2021年10月18日取得中国证监会的核准批 复，2021年11月26日完成 ...

金融界消息 截至2025年8月14日收盘，广誉远（600771）报收于21.55元，上涨1.08%，换手率3.56%， 成交量17.40万手，成交金额3.77亿元。 资金流向方面，今日主力资金净流入2301.69万元，占比成交额6.1%。其中，超大单净流入817.33万 元、占成交额2.17%，大单净流入1484.36万元、占成交额3.93%，中单净流出流入110.22万元、占成交 额0.29%，小单净流出2411.91万元、占成交额6.39%。 广誉远最新一期业绩显示，截至2025一季报，公司营业总收入4.17亿元、同比增长21.48%，归属净利润 6358.43万元，同比增长53.94%，扣非净利润6364.12万元，同比增长31.24%，流动比率2.158、速动比率 1.134、资产负债率31.11%。 天眼查商业履历信息显示，广誉远中药股份有限公司，成立于1996年，位于晋中市，是一家以从事医药 制造业为主的企业。企业注册资本48949.1141万人民币，实缴资本7150.9万人民币。公司法定代表人为 李晓军。 通过天眼查大数据分析，广誉远中药股份有限公司共对外投资了10家企业，参与招投标项目36次， ...

Group 1 - The stock price of Guangyuyuan is reported at 21.20 yuan, down by 0.22 yuan from the previous trading day, with a trading volume of 77,521 hands and a transaction amount of 165 million yuan [1] - Guangyuyuan operates in the traditional Chinese medicine manufacturing industry, focusing on the research, production, and sales of traditional Chinese medicine and health food, with core products including Xihuangwan and Angong Niuhuangwan [1] - The company has a history of over 400 years and is recognized as a time-honored brand in China [1] Group 2 - Guangyuyuan has indicated that the price difference of its products, such as Xihuangwan, is due to the use of natural ingredients like cow bile and musk, which results in higher costs compared to competitors using synthetic materials [1] - The listed price of Xihuangwan on the Jilin Province public resource trading center is 985 yuan, consistent with its retail price on e-commerce platforms [1] - The company is aware of the new regulations from the Ministry of Finance regarding capital reserve fund losses and is in communication with regulatory authorities to assess the situation carefully [1] Group 3 - On the same day, the main capital outflow for Guangyuyuan was 28.526 million yuan, with a cumulative net outflow of 34.124 million yuan over the past five trading days [2]

Core Viewpoint - The article highlights the significant price discrepancies of traditional Chinese medicine and chemical drugs in China, particularly in Jilin Province, where the government is taking measures to regulate and adjust these inflated prices [2][3][4]. Price Discrepancies - Jilin Province's public resource trading center lists the price of Jilin Galaxy Pharmaceutical's Niuhuang Shangqing Wan at 198 yuan per box, while the same product is available on e-commerce platforms for around 5 yuan per box, resulting in a price difference factor of 10.88 times [2]. - Similarly, the same company's Liuwei Dihuang Wan is priced at 198 yuan per box on the public trading center, with a price difference factor of 61.88 times compared to the e-commerce price of 5-6 yuan per box [2]. Government Actions - Starting from July, multiple provinces have initiated price governance for certain overpriced traditional Chinese and chemical medicines, requiring companies to adjust their listed prices to reasonable levels [2]. - On July 22, Jilin Province's public resource trading center announced a list of 52 traditional Chinese medicines and 43 chemical drugs with inflated prices, mandating price adjustments [3]. Price Adjustments - As of August 1, 26 out of the 52 overpriced traditional Chinese medicines had their prices adjusted, with some experiencing significant reductions, such as Liao Yuan Yulong Yadong Pharmaceutical's Fufang Danshen Pian, which saw a price drop from 443.5 yuan to 39.93 yuan, a decrease of 91% [3]. - Hebei Shams Pharmaceutical's Shengjing Pian was reduced from 987.8 yuan to 93 yuan, a decrease of 90.59% [3]. Red Mark Management - Certain drugs, including Chongqing Xieran Pharmaceutical's Yuanhu Zhitong Pian and Jilin Galaxy Pharmaceutical's Niuhuang Shangqing Wan and Liuwei Dihuang Wan, have not undergone price adjustments and are managed under red mark pricing due to their prices being more than five times the minimum daily treatment cost in the province [4][6]. Price Variations Across Regions - There are significant price differences for the same drugs across different provinces, with some products showing discrepancies of over 70 times. For instance, the price of Langzhi Group's Shuanghuanglian injection varies from 598 yuan in Inner Mongolia to 124 yuan in Liaoning [7]. - The same company's Xuesaitong injection shows a price of 398 yuan in Inner Mongolia compared to only 5.5 yuan in Liaoning and Hebei, indicating a price difference factor of 72 times [7]. Conclusion - The ongoing price governance and adjustments reflect the government's efforts to regulate the pharmaceutical market and ensure fair pricing for consumers, while also highlighting the challenges posed by significant regional price disparities [2][3][4][7].

Group 1 - The core viewpoint of the news is that Guangyuyuan (600771) has shown a decline in stock price and significant net outflow of funds, despite reporting strong revenue and profit growth in its latest quarterly results [1][3] - As of August 12, 2025, Guangyuyuan's stock closed at 21.2 yuan, down 1.03%, with a trading volume of 77,500 hands and a transaction amount of 165 million yuan [1] - The company experienced a net outflow of 28.52 million yuan in main funds, accounting for 17.25% of the transaction amount, with large orders contributing to the majority of the outflow [1] Group 2 - In the latest quarterly report, Guangyuyuan reported total operating revenue of 417 million yuan, a year-on-year increase of 21.48%, and a net profit attributable to shareholders of 63.58 million yuan, up 53.94% [1] - The company's liquidity ratios are strong, with a current ratio of 2.158 and a quick ratio of 1.134, while the debt-to-asset ratio stands at 31.11% [1] - Guangyuyuan, established in 1996, is primarily engaged in the pharmaceutical manufacturing industry and has a registered capital of 4.89 billion yuan [1][2]