Financial Performance - The company's operating revenue for Q1 2022 was CNY 391,426,974.40, representing an increase of 18.46% compared to the same period last year[5]. - Total operating revenue for Q1 2022 reached CNY 391,426,974.40, an increase of 18.5% compared to CNY 330,419,187.40 in Q1 2021[19]. - Total operating costs for Q1 2022 were CNY 383,410,691.60, up 21.4% from CNY 315,988,245.34 in Q1 2021[19]. - Operating profit for Q1 2022 decreased to CNY 8,150,857.93, down 44.5% from CNY 14,723,522.38 in Q1 2021[19]. - Net profit for Q1 2022 was CNY 8,208,293.96, a decline of 44.5% compared to CNY 14,751,490.81 in Q1 2021[19]. - The net profit attributable to shareholders decreased by 37.74% to CNY 6,258,328.50, primarily due to a lower growth rate in gross profit compared to expense increases[5][8]. - The net profit for Q1 2022 was ¥6,258,328.50, a decrease of 37.6% compared to ¥10,052,516.76 in Q1 2021[20]. - Total comprehensive income for Q1 2022 reached ¥54,842,713.95, significantly up from ¥91,548.74 in Q1 2021[20]. Cash Flow and Liquidity - The net cash flow from operating activities was negative at CNY -48,661,494.93, a significant decline of 395.58% year-on-year, impacted by delayed payments from wholesale customers due to the pandemic[5][8]. - Operating cash flow for Q1 2022 was negative at -¥48,661,494.93, compared to a positive cash flow of ¥16,462,872.11 in Q1 2021[21]. - Cash and cash equivalents as of March 31, 2022, were CNY 163,001,907.14, down 37.8% from CNY 262,283,455.11 at the end of 2021[14]. - Cash and cash equivalents at the end of Q1 2022 were ¥151,071,135.14, down from ¥332,076,819.77 at the end of Q1 2021[22]. - The company incurred total operating cash outflows of ¥459,202,592.89 in Q1 2022, compared to ¥358,220,582.93 in Q1 2021[21]. - Investment activities resulted in a net cash outflow of -¥42,102,569.55 in Q1 2022, compared to -¥4,575,061.81 in Q1 2021[22]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 31,143[10]. - The largest shareholder, Bailian Group Co., Ltd., holds 44.95% of the shares, totaling 100,274,734 shares[11]. - Shareholders' equity attributable to the parent company increased by 7.11% to CNY 825,758,971.80[6]. - Shareholders' equity increased to CNY 832,766,287.69 from CNY 777,923,573.74, an increase of 7.0%[16]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,353,150,015.44, an increase of 1.40% from the end of the previous year[6]. - Total assets as of March 31, 2022, were CNY 1,353,150,015.44, a slight increase from CNY 1,334,462,955.15 at the end of 2021[16]. - Total liabilities decreased to CNY 520,383,727.75 from CNY 556,539,381.41, a reduction of 6.5%[16]. - Accounts receivable decreased to CNY 122,699,748.29 from CNY 133,558,538.35, a reduction of 8.3%[14]. - Inventory increased to CNY 236,684,345.59, up 10.4% from CNY 214,496,533.27 at the end of 2021[14]. Earnings Per Share - Basic and diluted earnings per share both decreased by 37.69% to CNY 0.0281[6][8]. - The basic and diluted earnings per share for Q1 2022 were both ¥0.0281, down from ¥0.0451 in Q1 2021[20]. Government Subsidies - The company received government subsidies amounting to CNY 134,575.13, which are closely related to its normal business operations[7]. Other Comprehensive Income - The company reported a decrease in other comprehensive income, with a net amount of ¥48,584,385.45 in Q1 2022, compared to a loss of -¥9,960,968.02 in Q1 2021[20]. Return on Equity - The weighted average return on equity fell to 0.78%, a decrease of 0.58 percentage points compared to the previous year[6].

Financial Performance - The company's total revenue for 2021 was CNY 1,398,284,999.28, a decrease of 11.89% compared to CNY 1,586,903,725.22 in 2020[23] - The net profit attributable to shareholders for 2021 was CNY 49,419,058.45, down 27.90% from CNY 68,540,922.04 in the previous year[23] - The net profit after deducting non-recurring gains and losses was CNY 23,146,158.61, a decline of 48.66% compared to CNY 45,084,264.14 in 2020[23] - The net cash flow from operating activities was CNY 36,559,506.72, a significant drop of 56.60% from CNY 84,241,401.31 in the prior year[23] - Basic earnings per share decreased by 29.03% to CNY 0.22 compared to CNY 0.31 in the previous year[25] - The weighted average return on equity decreased by 2.85 percentage points to 6.45%[25] - The diluted earnings per share also decreased by 29.03% to CNY 0.22 compared to the previous year[25] - The net profit attributable to shareholders for the fourth quarter was CNY 13,453,223.14, showing fluctuations throughout the year[28] - The total operating revenue for the company in 2021 was 1.398 billion yuan, a decrease of 11.89% year-on-year, with main business revenue down 12.46%[53] - The net profit attributable to shareholders was 494.19 million yuan, a decrease of 27.90% year-on-year, while the net profit after deducting non-recurring gains and losses was 231.46 million yuan, down 48.66%[53] Dividend and Profit Distribution - The proposed cash dividend is CNY 0.70 per 10 shares, totaling CNY 15,616,044.29, which represents 31.60% of the net profit attributable to shareholders for the year[7] - The company plans to retain the remaining undistributed profits for the next fiscal year[7] - The company plans to distribute cash dividends totaling no less than 30% of the net profit attributable to shareholders for the year[163] - The company distributed a cash dividend of 0.95 yuan per 10 shares, totaling approximately 21.19 million yuan, which represents 30.92% of the net profit attributable to shareholders for the year[170] - The company has not proposed a cash profit distribution plan despite having positive distributable profits, and it is required to disclose the reasons and usage plans for undistributed profits[172] Operational Developments - The company opened 5 new stores during the reporting period, enhancing local market coverage[36] - The company initiated a comprehensive renovation of the Shanghai First Pharmaceutical Store to improve customer experience[36] - The company is focusing on strengthening supply chain management to reduce procurement costs and optimize product introduction[36] - The company is enhancing its store network and has renovated its flagship store to provide more professional services and attract younger consumers[48] - The company has implemented a tiered management system for pharmacies, which is expected to benefit leading chain retail pharmacies[45] - The company has conducted 22,500 training hours for employees, with 4,231 participants, to enhance professional capabilities in response to business needs[51] - The company has established a logistics distribution center in Shanghai, covering an area of 20,610.16 square meters for unified storage and distribution management[82] - The logistics distribution center handled delivery for over 100 internal stores, 36 medical institutions, and 50 commercial enterprises, with 16 self-owned vehicles managing all transportation tasks within the province[83] Market and Industry Trends - The retail pharmacy market growth rate declined from 6.9% in 2018 to 2.1% in 2021, with the growth primarily driven by DTP specialty drugs and online services[40] - The concentration of the pharmacy industry increased, with the top 10 pharmacy chains' sales share rising from 20.2% in 2019 to 27.0% in 2020[41] - The online market transaction volume surged, with O2O business share increasing from 1.4% to 3.5% between July 2020 and July 2021[42] - The DTP pharmacy market in China is expected to grow significantly, with sales reaching ¥19 billion in 2020, a 2.4 times increase from 2015[108] - The retail pharmacy sector is focusing on upgrading health services, driven by increasing consumer health awareness and new policies[106] - The online healthcare and pharmaceutical services market has seen explosive growth, with over 1,600 internet hospitals established as of June 2021, driven by the pandemic[109] - The aging population in China, with 18.7% aged 60 and above, is expected to drive strong demand for healthcare products and services, particularly in traditional Chinese medicine and home medical devices[110] Strategic Initiatives - The company is actively responding to national policies that promote high-quality development in the pharmaceutical distribution industry, focusing on innovation and transformation[39] - The company is exploring digital transformation and innovative service models to meet diverse consumer needs in the retail sector[106] - The company aims to strengthen its core competitiveness by improving talent structure and enhancing supply chain management[108] - The company plans to enhance its supply chain management and optimize its network layout to improve operational efficiency[107] - The company will explore new business models, including cross-border e-commerce, to diversify its operations and create additional revenue streams[112] - The company will actively respond to changes in policies, technology, and market conditions, focusing on the integration of online and offline operations to explore new business models in the "Internet + Healthcare" sector[118] Risk Management and Compliance - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[9] - There are no violations of decision-making procedures regarding external guarantees[10] - The company has established a comprehensive internal control system and reported no significant deficiencies in financial reporting internal controls during the evaluation period[173] - The company is committed to strengthening internal controls and implementing risk management measures to mitigate investment risks and protect shareholder interests[118] - The company has not faced any delisting risk or bankruptcy reorganization issues[190] - The company has no significant litigation or arbitration matters during the reporting period[190] Human Resources and Governance - The total remuneration paid to directors, supervisors, and senior management during the reporting period amounted to CNY 9.2897 million[144] - The independent director allowance is paid quarterly, while senior management's basic salary is paid monthly, with performance bonuses distributed after annual assessments[144] - The company employed a total of 812 staff members, with 261 in the parent company and 551 in major subsidiaries[155] - The company has a flexible compensation policy that includes various forms such as annual salary and position salary to attract and retain talent[156] - The company emphasizes training for middle management and key employees to enhance management capabilities and operational efficiency[157] - The company has revised its profit distribution policy to ensure reasonable returns for investors while maintaining sustainable development[160] Investment and Financial Management - The company invested a total of CNY 24,962,400 in the reporting period, marking a 107.85% increase from the previous year's investment of CNY 12,010,000[92] - The company’s investment in other equity instruments increased from CNY 179,605,248.72 to CNY 182,820,098.11, with a change of CNY 3,214,849.39 during the reporting period[97] - The company has engaged in cash asset management through entrusted financial management, with the total amount being disclosed in the report[200] - The company has ongoing daily related party transactions with its controlling shareholder, Bailian Group, with a financing limit not exceeding 400 million RMB[192] - The interest income from the financial services agreement with Bailian Group during the reporting period was 11.51 million RMB[192] Community Engagement and Social Responsibility - The company provided 100,000 RMB in financial assistance to Huiba Village in Yunnan as part of its second round of "precise poverty alleviation" efforts[181] - The company engaged in consumption poverty alleviation by purchasing local mushroom products worth 104,700 RMB[181] - The company funded 30,000 RMB to support three students from Yunnan studying at a circulation school in Shanghai[181] - The volunteer service team, named after a national model worker, has provided health consultation and services to 2,535 individuals over 22 events by the end of 2021[180] - The company has implemented employee care programs, with 800 employees participating in health insurance projects totaling 182,400 yuan[179]

Financial Performance - The company's operating revenue for Q3 2021 was ¥364,802,049.26, representing an increase of 8.34% compared to the same period last year[5]. - The net profit attributable to shareholders for Q3 2021 was ¥10,015,006.02, a decrease of 58.97% year-on-year[5]. - The net profit attributable to shareholders after deducting non-recurring gains and losses for Q3 2021 was ¥1,597,503.33, down 80.50% from the previous year[5]. - The basic earnings per share for Q3 2021 was ¥0.0449, a decline of 58.96% compared to the same period last year[6]. - The net profit attributable to shareholders for the year-to-date period was ¥35,965,835.31, down 37.64% compared to the same period last year[5]. - Total operating revenue for the first three quarters of 2021 was CNY 996,659,724.28, a decrease of 16.5% compared to CNY 1,194,693,121.84 in the same period of 2020[20]. - Net profit for the third quarter of 2021 was CNY 35,965,835.31, a decline of 37.6% from CNY 57,677,849.44 in the same quarter of 2020[22]. - The company reported a total comprehensive income of CNY 27,177,944.37 for the third quarter of 2021, compared to CNY 42,949,528.71 in the same quarter of 2020[23]. Cash Flow and Assets - The cash flow from operating activities for the year-to-date period was ¥27,317,271.41, reflecting a decrease of 38.74%[6]. - The company's cash and cash equivalents as of September 30, 2021, were ¥252,428,485.18, down from ¥509,431,257.61 at the end of 2020[17]. - Total assets at the end of the reporting period were ¥1,258,748,964.61, down 9.85% from the end of the previous year[6]. - Total assets as of the end of the third quarter of 2021 amounted to CNY 1,258,748,964.61, compared to CNY 1,396,255,792.15 at the end of the previous year[19]. - Cash inflow from operating activities for the first three quarters of 2021 was CNY 1,078,526,504.03, a decrease of 22.3% compared to CNY 1,387,426,641.04 in the same period of 2020[24]. - Cash and cash equivalents at the end of Q3 2021 stood at CNY 252,128,485.18, a decrease from CNY 671,948,844.06 at the end of Q3 2020[25]. - Total liabilities decreased to CNY 505,318,438.02 in the third quarter of 2021 from CNY 646,939,073.40 in the same period of 2020[19]. Business Operations and Strategy - The decrease in net profit was primarily due to lower sales of civilian epidemic prevention materials and the absence of pandemic-related subsidies received in the previous year[9]. - The company is focusing on expanding its retail and wholesale pharmaceutical business, enhancing local coverage and service quality[15]. - Strategic partnerships with major e-commerce platforms like Alibaba Health and JD Daojia are being pursued to boost online sales[15]. - The company is actively developing DTP pharmacies to capture prescription drug market share[15]. - Employee training programs are being implemented to improve professional skills and drive sales growth in non-pharmaceutical categories[15]. - The company has not reported any changes in its main business operations during the reporting period[14]. Shareholder Information - Total number of common shareholders at the end of the reporting period was 22,991[12]. - The largest shareholder, Bailian Group Co., Ltd., holds 100,274,734 shares, accounting for 44.95% of total shares[12]. Liabilities and Equity - The total liabilities amounted to 646,939,073.40, with a total equity of 749,316,718.75, resulting in total assets of 1,396,255,792.15[29]. - The company reported a decrease in undistributed profits by 1,835,757.61, bringing the total to 290,683,486.98[29]. - The total non-current liabilities reached 121,064,792.99, which includes deferred income of 12,404,932.68 and deferred tax liabilities of 36,457,908.45[29]. - The capital reserve stood at 65,189,347.33, contributing to the overall equity structure[29]. - The company's total equity attributable to shareholders was 742,309,402.86, reflecting a slight decrease of 1,870,933.56[29]. - The total deferred income tax liabilities were reported at 36,457,908.45, highlighting the company's tax obligations[29].

Financial Performance - The company's operating revenue for the first half of 2021 was approximately RMB 631.86 million, a decrease of 26.36% compared to RMB 857.99 million in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2021 was approximately RMB 25.95 million, down 22.00% from RMB 33.27 million in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 52.17%, amounting to approximately RMB 15.84 million compared to RMB 33.12 million in the same period last year[18]. - The weighted average return on net assets was 3.53%, a decrease of 1.05 percentage points from 4.58% in the same period last year[18]. - The company achieved operating revenue of CNY 631.86 million, a year-on-year decrease of 26.36%, with main business revenue at CNY 603.05 million, down 27.66%[45]. - The net profit attributable to shareholders was CNY 259.51 million, reflecting a decline of 22.00% year-on-year[45]. - The retail pharmacy business generated revenue of CNY 397.75 million, showing a slight growth of 1.22% year-on-year[45]. - The wholesale pharmaceutical business reported revenue of CNY 205.31 million, a significant decline of 53.42% year-on-year[46]. - The company reported a significant reduction in sales expenses, which were ¥72,130,997.59 in the first half of 2021, compared to ¥73,281,087.96 in the same period last year[113]. - The comprehensive income for the current period shows a total loss of CNY 10,453,547.56, compared to a gain of CNY 10,739,655.41 in the same period last year, indicating a significant downturn[122]. Cash Flow and Assets - The net cash flow from operating activities increased by 651.91%, reaching approximately RMB 31.29 million, compared to a negative cash flow of RMB 5.67 million in the previous year[18]. - The company reported a cash inflow of ¥180,000,000.00 from financing activities in 2021, with total cash outflow from financing activities amounting to ¥197,039,896.09[117]. - The ending cash and cash equivalents balance decreased to ¥309,344,930.40 in 2021 from ¥641,611,145.08 in 2020, a decline of approximately 51.8%[117]. - The total assets at the end of the reporting period were approximately RMB 1.24 billion, a decrease of 10.87% from RMB 1.40 billion at the end of the previous year[18]. - The company's current assets totaled CNY 647,593,595.89, down from CNY 879,352,653.92 at the end of 2020, indicating a decrease of about 26.3%[107]. - The cash and cash equivalents decreased significantly from CNY 509,431,257.61 to CNY 309,644,930.40, representing a decline of approximately 39.2%[107]. - The total liabilities decreased from CNY 646,939,073.40 to CNY 507,494,338.97, a reduction of about 21.5%[108]. - The company's total equity as of June 30, 2021, was CNY 736,992,237.63, down from CNY 749,316,718.75, reflecting a decrease of approximately 1.6%[108]. Business Strategy and Market Position - The company reported a significant decline in sales of civilian epidemic prevention materials, which impacted operating profits[18]. - The company is actively enhancing its professional training to improve pharmaceutical service capabilities, focusing on medication guidance and health services[31]. - The company is expanding its retail and wholesale business in response to the growing health demand driven by increasing disposable income and aging population[29]. - The implementation of policies supporting the transition of drug sales from hospitals to retail pharmacies is expected to benefit the company in the long term[31]. - The company is focusing on chronic disease management by setting up specialized areas and employing trained staff to provide targeted services[31]. - The company is adapting to market changes by developing a modern e-commerce channel to enhance health consumption experiences[33]. - The company is positioned to benefit from the national strategy of prioritizing health development as outlined in the 14th Five-Year Plan[30]. - The company is leveraging new technologies such as AI and online services to enhance its operational model and customer experience[32]. Corporate Governance and Compliance - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[5]. - The company reported no environmental violations or penalties during the reporting period, emphasizing its commitment to environmental protection[77]. - The company is not classified as a key pollutant discharge unit and has maintained compliance with environmental regulations throughout its operations[77]. - The company did not propose any profit distribution or capital reserve transfer plans for the first half of 2021, indicating a focus on reinvestment[74]. - The integrity status of the company and its controlling shareholders remained good, with no major credit defaults reported[83]. - The company did not report any significant violations or penalties against its directors, supervisors, or senior management during the reporting period[83]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 23,966[98]. - The largest shareholder, Bailian Group Co., Ltd., holds 100,274,734 shares, accounting for 44.95% of the total shares[101]. - Jilin Aodong Pharmaceutical Group Co., Ltd. holds 10,821,394 shares, representing 4.85% of the total shares[101]. - The company has not reported any changes in its total share capital or structure during the reporting period[97]. Risks and Challenges - The company faces risks from industry policy changes, including the impact of "two-invoice system" and "volume-based procurement" policies, which may increase cost pressures on pharmaceutical retail operations[65]. - The company is also exposed to intensified market competition, particularly from online pharmacies and changes in consumer behavior, which could affect profitability[66]. - Financial risks are present due to increased investments in marketing networks and business innovation, which may lead to short-term cost increases outpacing revenue growth[67]. Accounting and Financial Reporting - The company's financial statements are prepared on a going concern basis, with no significant doubts regarding the continuity of operations within the next 12 months[136]. - The accounting policies and estimates have been tailored to the company's actual production and operational characteristics[137]. - The financial statements comply with the requirements of the enterprise accounting standards, accurately reflecting the company's financial position and operating results[138]. - The company recognizes the fair value of identifiable assets and liabilities in business combinations, with any excess of cost over fair value recognized as goodwill[142].

Financial Performance - Operating revenue for the current period was CNY 330,419,187.40, a decline of 34.19% compared to CNY 502,080,000.94 in the same period last year[8] - Net profit attributable to shareholders decreased by 46.07% to CNY 10,052,516.76 from CNY 18,638,693.76 year-on-year[8] - Basic and diluted earnings per share fell by 45.99% to CNY 0.0451 from CNY 0.0835 in the same period last year[8] - Total operating revenue for Q1 2021 was ¥330,419,187.40, a decrease of 34.2% compared to ¥502,080,000.94 in Q1 2020[20] - Net profit for Q1 2021 was ¥10,052,516.76, a decline of 46.1% from ¥18,638,693.76 in Q1 2020[20] - Earnings per share for Q1 2021 were ¥0.0451, compared to ¥0.0835 in Q1 2020, reflecting a decrease of 46%[20] - The company reported a comprehensive income total of ¥91,548.74 for Q1 2021, compared to ¥13,902,501.82 in Q1 2020[20] - The company experienced a tax expense of ¥4,698,974.05 in Q1 2021, down from ¥5,915,445.41 in Q1 2020[20] - Other comprehensive income after tax for Q1 2021 was -¥9,960,968.02, compared to -¥4,736,191.94 in Q1 2020[20] Cash Flow and Liquidity - The net cash flow from operating activities improved by 139.27%, reaching CNY 16,462,872.11 compared to a negative CNY 41,922,771.04 in the previous year[8] - Cash flow from operating activities was ¥16,462,872.11, a significant improvement of 139.27% year-on-year[12] - The net cash flow from operating activities for Q1 2021 was ¥1,661,715.57, a significant improvement compared to a net outflow of ¥86,421,552.25 in Q1 2020[25] - Total cash inflow from operating activities decreased to ¥132,812,941.56 in Q1 2021, down 27.6% from ¥183,565,555.03 in Q1 2020[25] - Cash outflow from operating activities also decreased to ¥131,151,225.99 in Q1 2021, down 51.4% from ¥269,987,107.28 in Q1 2020[25] - The company reported a net cash flow from investing activities of -¥1,399,387.46 in Q1 2021, an improvement from -¥3,919,963.22 in Q1 2020[25] - Cash flow from financing activities showed a net outflow of -¥181,945,227.22 in Q1 2021, compared to a net inflow of ¥179,779,444.44 in Q1 2020[25] - The ending cash and cash equivalents balance decreased to ¥319,713,293.01 in Q1 2021 from ¥506,282,377.80 in Q1 2020, representing a decline of 37%[25] Assets and Liabilities - Total assets decreased by 10.83% from the end of the previous year to CNY 1,245,084,076.08[8] - Total current assets decreased to ¥672,459,207.70 from ¥879,352,653.92, reflecting a decline of approximately 23.5%[14] - Total liabilities decreased to ¥498,215,275.47 from ¥646,939,073.40, a reduction of about 23%[15] - Cash and cash equivalents dropped to ¥332,376,819.77 from ¥509,431,257.61, a decrease of approximately 34.7%[14] - Inventory decreased to ¥203,119,619.63 from ¥215,578,597.09, a decline of about 5.8%[14] - Total non-current assets increased to ¥572,624,868.38 from ¥516,903,138.23, an increase of approximately 10.8%[14] - Total liabilities as of Q1 2021 amounted to ¥518,025,866.39, down from ¥689,514,114.21 in the previous year[18] - The company's total equity as of January 1, 2021, was ¥746,777,251.87, a decrease of ¥2,539,466.88 from the previous year[29] Financial Management - The company’s financial expenses decreased by 76.26%, resulting in a net financial income of CNY -6,772,371.29[11] - The company fully repaid short-term loans during the reporting period[12] - The company reported a tax expense of CNY 3.40 million for Q1 2021, up from CNY 2.05 million in Q1 2020[22] - The financial expenses for Q1 2021 included interest expenses of ¥757,660.19, an increase from ¥220,555.56 in Q1 2020[20] - Sales expenses decreased significantly to CNY 957,316.52 from CNY 8.15 million in Q1 2020, reflecting cost control measures[22] Future Outlook - The company has not indicated any significant changes in net profit forecasts for the upcoming reporting period[12] - The company plans to focus on market expansion and new product development as part of its future strategy[22]

Financial Performance - The company's total revenue for 2020 reached ¥1,586,903,725.22, representing a year-on-year increase of 27.65% compared to ¥1,243,169,488.29 in 2019[21] - The net profit attributable to shareholders of the listed company was ¥68,540,922.04, a 29.10% increase from ¥53,089,382.56 in the previous year[21] - The net profit after deducting non-recurring gains and losses was ¥45,084,264.14, up 20.32% from ¥37,469,040.76 in 2019[21] - The company's cash flow from operating activities was ¥84,241,401.31, a decrease of 19.46% compared to ¥104,601,581.36 in 2019[21] - The total assets of the company at the end of 2020 were ¥1,396,255,792.15, reflecting a 14.77% increase from ¥1,216,551,640.88 at the end of 2019[21] - The net assets attributable to shareholders of the listed company increased by 2.34% to ¥742,309,402.86 from ¥725,329,730.23 in 2019[21] - The basic earnings per share for 2020 were ¥0.31, up 29.17% from ¥0.24 in 2019[22] - The weighted average return on equity increased to 9.30%, up 1.67 percentage points from 7.63% in 2019[22] Dividend Policy - The company proposed a cash dividend of ¥0.95 per 10 shares, totaling ¥21,193,202.97, which accounts for 30.92% of the net profit attributable to shareholders[4] - The company plans to carry forward the remaining undistributed profits to the next fiscal year[4] - The cash dividend distribution ratio for 2020 was 30.92%, with a cash dividend of 0.95 RMB per 10 shares, amounting to 21,193,202.97 RMB[121] - The company did not distribute cash dividends during the reporting period, with the total cash dividends proposed being less than 30% of the net profit attributable to shareholders[118] - The company must provide detailed reasons for not proposing a cash profit distribution plan despite having positive distributable profits for ordinary shareholders[122] - The company’s independent directors must express their opinions on any adjustments to the profit distribution policy[119] - The supervisory board monitors the execution of the cash dividend policy and ensures compliance with decision-making procedures and information disclosure[120] Revenue Trends - In Q1 2020, the company reported revenue of approximately ¥502.08 million, with a net profit attributable to shareholders of ¥18.64 million[24] - The company's revenue decreased in Q2 and Q3 2020, with Q2 revenue at approximately ¥355.91 million and Q3 at ¥336.71 million, while Q4 revenue rebounded to approximately ¥392.21 million[24] - The net profit attributable to shareholders for Q3 2020 was approximately ¥24.41 million, but dropped to approximately ¥10.86 million in Q4 2020[24] - The pharmaceutical wholesale business generated revenue of 67,907.51 million yuan, reflecting a significant year-on-year growth of 49.25%[51] - The pharmaceutical retail business achieved revenue of 854.04 million yuan, a year-on-year increase of 17.18%[56] - Online business revenue reached 91.06 million yuan, accounting for 11% of retail business revenue[53] Business Strategy and Market Trends - The company’s retail and wholesale business model focuses on connecting upstream pharmaceutical manufacturers with downstream consumers, leveraging transaction margins and value-added services[33] - The growing health demand in China is driven by increasing disposable income and an aging population, with 18.1% of the population aged 60 and above as of the end of 2019[34] - The company is expanding its store types and locations in commercial centers to meet diverse health needs, resulting in continuous growth in sales of pharmaceuticals and health products[34] - Policy support for the pharmaceutical industry includes reforms that favor retail pharmacies, with a decrease in the proportion of drug sales in public hospitals from 41.8% in 2010 to 28.3% in 2019[35] - The company is enhancing its pharmaceutical service capabilities and providing comprehensive health services to consumers, which is expected to drive sustained business growth[36] - The company is transitioning from a traditional product supplier to a comprehensive health service provider, focusing on personalized and convenient services[39] - The company is adapting to the "Internet + healthcare" trend by establishing partnerships with well-known platforms like JD.com and Meituan to meet the growing online medication purchasing demand[46] Operational Efficiency - The company has implemented measures to optimize internal management and enhance operational efficiency, ensuring better control and transparency[49] - The company has enhanced its online business operations and technology platform, collaborating with major pharmaceutical e-commerce platforms and launching its own "medication delivery" service[37] - The company has trained over 5,000 employees to improve professional capabilities, emphasizing the development of pharmacists and other key personnel[45] - The company has established a logistics distribution center covering 20,610.16 square meters, servicing over 100 internal stores and 33 external medical institutions[77] Challenges and Risks - The company faces challenges such as rising labor costs, rental levels, and pressures from medical reform policies and e-commerce competition[99] - The company faces risks from policy changes that could impact the pharmaceutical distribution industry, necessitating close monitoring and adaptation to maintain competitiveness[106] - Increased market competition is anticipated due to the removal of store distance restrictions and the entry of internet companies into the pharmaceutical sector, which may affect customer traffic to physical stores[107] Corporate Governance - The company has committed to ensuring the independence of its operations and financial management following the transfer of shares to Baillan Group, which includes maintaining independent procurement, production, and sales capabilities[123] - Baillan Group has pledged to avoid any conflicts of interest and ensure that no competitive business activities occur with the company during its tenure as a controlling shareholder[123] - The company will maintain independent financial accounting and management systems, ensuring that financial personnel do not hold positions in Baillan Group or its controlled entities[123] - The company guarantees that its assets will remain intact and that no resources will be misappropriated by Baillan Group or its affiliates[123] - The company will ensure that its governance structure remains independent and that its decision-making bodies operate without interference from Baillan Group[123] Social Responsibility - The company has been actively involved in poverty alleviation efforts, including a partnership with Huiba Village in Yunnan since 2019, focusing on consumption and educational support[145] - The company plans to continue its poverty alleviation initiatives with a focus on promoting local specialty products and supporting education for students from Yunnan[149] - The company has actively participated in the distribution of epidemic prevention materials during the COVID-19 pandemic, supplying masks to over 1,200 pharmacies and nearly 6,000 government and enterprise units[152] - The company has not reported any environmental violations and adheres to national environmental protection laws, ensuring no waste or pollution is generated from its operations[153] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 25,638, an increase from 25,262 at the end of the previous month[158] - The largest shareholder, Bailian Group Co., Ltd., holds 100,274,734 shares, accounting for 44.95% of total shares[161] - The top ten shareholders collectively hold a significant portion of the company's equity, with the largest three shareholders alone accounting for over 50%[161] - The company has no controlling shareholder or actual controller, ensuring a diversified ownership structure[163] - There were no changes in the controlling shareholder during the reporting period, maintaining stability in ownership[163] Management and Personnel - The company employed a total of 772 staff, with 265 in the parent company and 507 in major subsidiaries[175] - The total remuneration for directors and senior management during the reporting period amounted to 1,078.35 million RMB[167] - The company has established a performance evaluation system linking the income of operators to the company's operational performance[188] - The company conducted training programs focusing on enhancing the professional capabilities of middle management and retail staff[178] Audit and Compliance - The company appointed Lixin Certified Public Accountants as the financial report auditing firm for the 2020 fiscal year, with an audit fee of 568,000 RMB[126] - Deloitte Huayong was appointed as the internal control auditing firm for the 2020 fiscal year, with an audit fee of 480,000 RMB[126] - The internal control self-assessment report was disclosed, indicating no significant deficiencies during the reporting period[200] - The internal control audit report received a standard unqualified opinion, affirming the effectiveness of the company's internal controls[200]

Financial Performance - Operating revenue for the first nine months rose by 29.95% to CNY 1,194,693,121.84 year-on-year[7] - Net profit attributable to shareholders increased by 51.06% to CNY 57,677,849.44 compared to the same period last year[7] - Basic earnings per share increased by 50.99% to CNY 0.2585[7] - Total profit for the period was ¥75,982,998.71, a 50.96% increase from ¥50,333,179.43, attributed to higher sales of epidemic prevention products and compensation received for land acquisition[15] - Net profit for Q3 2020 was $24.41 million, compared to $7.99 million in Q3 2019, representing a 205.01% increase[26] - The company reported a net profit of $57.68 million for the first three quarters of 2020, up from $38.18 million in the same period of 2019, reflecting a growth of 51.24%[26] Asset and Liability Changes - Total assets increased by 14.82% to CNY 1,396,797,003.64 compared to the end of the previous year[7] - The company reported a significant increase in short-term loans, totaling CNY 180,000,000.00, reflecting new bank loans obtained during the reporting period[14] - Total current liabilities increased to ¥581,945,030.23 from ¥422,230,117.31, representing a 37.8% increase year-over-year[20] - Total liabilities increased to ¥653,438,909.48 from ¥309,005,285.76, reflecting a 111.5% rise year-over-year[22] - The company’s total non-current liabilities decreased to ¥48,388,924.86 from ¥53,465,510.98, a decline of 9.9%[22] Cash Flow Analysis - Cash flow from operating activities decreased by 34.37% to CNY 44,594,762.79 compared to the same period last year[7] - The net cash flow from operating activities for the first three quarters of 2020 was ¥85,484,631.12, an increase of 82% compared to ¥46,967,182.02 in the same period of 2019[30] - The net cash flow from financing activities was CNY 161.19 million in the first three quarters of 2020, compared to a negative cash flow of CNY 14.50 million in the same period of 2019[28] - Cash inflow from financing activities amounted to ¥180,000,000.00, with a net cash flow of ¥161,188,803.42 after accounting for cash outflows[30] Shareholder Information - The number of shareholders reached 26,354, with the largest shareholder, Bailian Group Co., Ltd., holding 44.95% of the shares[10] - Shareholders' equity totaled ¥698,244,207.23, slightly up from ¥689,082,071.38, showing a 1.7% increase[22] Operational Insights - The company has indicated that the current business growth has returned to normal levels following the peak demand for epidemic prevention materials, but future operations remain uncertain due to ongoing global pandemic risks[15] - The company reported a significant increase in other income, which rose by 121.19% to ¥19,386,511.08, compared to ¥8,764,758.88 in the previous year, due to compensation received for land acquisition[15] Inventory and Expenses - The inventory level stood at ¥227,119,943.73, slightly up from ¥220,729,381.22 at the end of 2019, indicating stable stock levels amid increased sales[19] - Operating costs rose to ¥980,425,397.82, reflecting a 33.21% increase from ¥735,978,784.22, also driven by the growth in sales of epidemic prevention materials[15] - Sales expenses decreased to CNY 6.66 million in Q3 2020, down 57.0% from CNY 15.54 million in Q3 2019[27] - The company incurred management expenses of CNY 18.35 million in Q3 2020, a significant increase from CNY 5.61 million in Q3 2019[27]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥857,985,855.05, representing a year-on-year increase of 38.99% due to the growth in sales of civilian epidemic prevention materials[19] - The net profit attributable to shareholders of the listed company was ¥33,269,875.50, an increase of 10.21% compared to the same period last year[19] - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 41.89% to ¥33,123,721.52, driven by enhanced operational efficiency and reduced expense ratios[19] - The basic earnings per share rose to ¥0.1491, reflecting a 10.20% increase year-on-year[20] - The weighted average return on net assets increased by 0.32 percentage points to 4.58%[20] - The company reported a net cash flow from operating activities of -¥5,668,975.98, a decrease of 116.84% compared to the previous year[50] - Total operating revenue for the first half of 2020 reached ¥857,985,855.05, an increase of 38.93% compared to ¥617,290,316.37 in the same period of 2019[115] - Net profit for the first half of 2020 was ¥33,269,875.50, representing a 10.83% increase from ¥30,187,623.14 in the previous year[115] - The company reported a financial expense of -¥6,971,028.40, compared to -¥5,765,440.83 in the previous year, indicating an increase in financial costs[115] - The total liabilities and equity reached ¥1,308,753,506.52, compared to ¥998,087,357.14 in the previous year, reflecting an increase of 31.06%[113] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,381,764,415.61, a 13.58% increase from the end of the previous year[19] - Total current assets increased to ¥1,039,475,925.11 as of June 30, 2020, up from ¥849,159,666.66 at the end of 2019, representing a growth of approximately 22.4%[109] - Cash and cash equivalents rose to ¥641,911,145.08, compared to ¥473,706,101.24 at the end of 2019, marking an increase of about 35.5%[109] - Total liabilities rose to ¥647,146,146.97, up from ¥484,214,594.76, indicating an increase of about 33.8%[110] - Current liabilities totaled ¥590,304,977.34, compared to ¥422,230,117.31, which is an increase of approximately 39.9%[110] - The company’s total assets increased to ¥1,381,764,415.61 from ¥1,216,551,640.88, representing a growth of about 13.6%[109] Business Operations and Strategy - The company faces uncertainties in future operations due to the normalization of epidemic prevention measures, which may impact sales of epidemic prevention materials[22] - The company plans to open or renovate over 10 innovative pharmacies by the end of 2020, which is expected to significantly enhance its brand rejuvenation efforts[31] - The implementation of the "Healthy China Strategy" and related healthcare reforms is expected to provide retail pharmacies with more opportunities to offer professional pharmaceutical and health services[32] - The company is enhancing its pharmaceutical service capabilities and providing extended services such as medication guidance and health consultations to meet rising health demands[33] - The company is actively expanding its B2C and O2O business models, integrating online resources to adapt to new consumer trends in the pharmaceutical sector[35] - The company continues to innovate its store formats, including DTP pharmacies and hospital-adjacent pharmacies, to meet diverse health needs[41] Market and Industry Challenges - The company faces industry policy risks, including the impact of "two-invoice system" and "volume-based procurement" policies, which may challenge the operations of retail pharmaceutical enterprises[71] - Market competition is intensifying, with pressures from changing consumer behaviors and the entry of internet companies into pharmaceutical operations, necessitating a shift in business models[72] - The ongoing COVID-19 pandemic presents uncertainties for future operations, with the company committed to monitoring developments and ensuring supply of epidemic prevention materials[75] Shareholder and Governance - The company has not proposed any profit distribution plan or capital reserve transfer to increase share capital for the reporting period[5] - The actual controller and shareholders of the company have committed to avoiding any business that competes with the company during the control period[82] - The company guarantees the independence of its financial accounting department and financial personnel, ensuring no overlap with the controlling group[82] - The company will ensure that its senior management does not receive compensation from the controlling group or its affiliates[82] - The company will avoid and minimize related party transactions, ensuring fair operations at market prices[82] Cash Flow and Financing - The company raised RMB 180 million through borrowings during the first half of 2020[120] - Cash inflow from financing activities totaled CNY 180,000,000.00, with a net cash flow of CNY 178,849,222.21, indicating strong financing support[122] - The net increase in cash and cash equivalents for the first half of 2020 was CNY 192,334,882.95, significantly higher than CNY 27,079,241.85 in the first half of 2019[122] Subsidiaries and Investments - The company maintains a 100% ownership in several subsidiaries, including Shanghai First Pharmaceutical Chain Co., Ltd. and Shanghai Longcheng Huamei Instrument Co., Ltd.[138] - The company established a wholly-owned subsidiary with a registered capital of ¥10,000,000.00, marking an increase in investment of 681.25% year-on-year[55] - Shanghai First Pharmaceutical Store, a wholly-owned subsidiary, reported total assets of CNY 99,426,300 and a net asset of CNY 11,074,800, with a net loss of CNY 2,454,300 during the reporting period[61] Financial Reporting and Compliance - The financial report for the first half of 2020 is available for review, detailing the company's financial performance[108] - The financial statements are prepared in accordance with the enterprise accounting standards, ensuring a true and complete reflection of the company's financial status[140] - The company has confirmed its ability to continue as a going concern for at least 12 months from the reporting date[138]

Group 1: Event Details - The investor reception day is scheduled for June 23, 2020, from 16:00 to 17:00 [1] - The event will take place at the second-floor auditorium, 681 Xiaomu Bridge Road, Xuhui District, Shanghai [1] - The meeting will be held in person [1] Group 2: Participants and Topics - Participants will include the company's chairman, financial director, and some senior management [1] - The event will cover topics such as business performance, development strategy, and corporate governance [1] Group 3: Registration and Requirements - Investors must register in advance by contacting the board office between June 19, 2020, 9:00-11:00 and 13:00-16:00 [1] - Personal investors need to bring their original and a copy of their ID, while institutional investors must provide relevant documentation [1][2] Group 4: Feedback and Communication - Investors are encouraged to submit questions and topics of interest by June 22, 2020, via phone or email to enhance the event's efficiency [2] - The company expresses gratitude for investor support and encourages active participation [2]

Financial Performance - Operating revenue rose by 63.02% to CNY 502,080,000.94 year-on-year, primarily due to increased sales of epidemic prevention products[9] - Net profit attributable to shareholders increased by 32.02% to CNY 18,638,693.76 compared to the same period last year[5] - Total operating revenue for Q1 2020 reached ¥502,080,000.94, a 63.1% increase from ¥307,984,638.80 in Q1 2019[20] - Net profit for Q1 2020 was ¥18,638,693.76, representing a 32.5% increase compared to ¥14,117,679.49 in Q1 2019[20] - Basic and diluted earnings per share for Q1 2020 were both ¥0.0835, compared to ¥0.0633 in Q1 2019[20] Assets and Liabilities - Total assets increased by 21.53% to CNY 1,478,514,437.09 compared to the end of the previous year[5] - The company's current assets reached CNY 1,120,622,926.71, up from CNY 849,159,666.66 at the end of 2019, indicating a rise of about 32%[14] - Total liabilities increased to CNY 732,673,614.46 from CNY 484,214,594.76, representing a growth of approximately 51.4%[15] - Current liabilities totaled CNY 672,478,761.33, up from CNY 422,230,117.31, indicating an increase of approximately 59.2%[15] - Total liabilities as of Q1 2020 amounted to ¥626,281,808.29, significantly higher than ¥309,005,285.76 in the previous year[18] Cash Flow - Cash flow from operating activities showed a significant decline of 189.93%, resulting in a net outflow of CNY 41,922,771.04[9] - Cash flow from operating activities showed a net outflow of ¥41.92 million in Q1 2020, compared to a net inflow of ¥46.62 million in Q1 2019[23] - The net cash flow from operating activities was negative at -¥86,421,552.25, a significant decline from a positive net cash flow of ¥45,253,757.10 in the same period last year[24] - The overall net increase in cash and cash equivalents for Q1 2020 was ¥89,437,928.97, compared to an increase of ¥45,182,773.04 in Q1 2019[24] Inventory and Receivables - Inventory increased by 47.41% to CNY 325,379,426.91, mainly due to the rise in stock of epidemic prevention products[9] - Accounts receivable rose to CNY 142,512,135.64 from CNY 116,978,046.81, marking an increase of around 21.8%[14] - The company reported a significant increase in prepayments by 2955.91% to CNY 52,042,210.09, reflecting increased advance payments for epidemic prevention products[9] Shareholder Information - The number of shareholders totaled 24,945, with the largest shareholder holding 44.95% of the shares[7] - The company's equity attributable to shareholders rose to CNY 738,833,506.74 from CNY 725,329,730.23, showing a slight increase of about 1.9%[15] Operational Challenges - The company faces uncertainties in operations due to external factors such as economic slowdown and supply chain disruptions[9] Research and Development - The company incurred R&D expenses but did not disclose specific figures in the report[21] Future Plans - The company plans to focus on market expansion and new product development in the upcoming quarters, although specific figures were not disclosed[20]