Financial Performance - Net profit attributable to shareholders surged by 1,023.12% to CNY 538,090,179.47, driven by significant revenue growth[7] - Operating revenue reached CNY 2,678,827,943.92, marking a 128.81% increase year-on-year[7] - Basic earnings per share increased to CNY 1.16, up 1,060.00% from CNY 0.10 in the same period last year[7] - The total comprehensive income for Q1 2021 was CNY 555,564,174.63, compared to CNY 55,556,088.04 in Q1 2020, marking an increase of 900.1%[35] - The net profit attributable to the parent company surged to RMB 538,090,179.47, a remarkable increase of 1023.12% from RMB 47,910,124.90 in the previous year[17] - The net profit for Q1 2021 was ¥553,395,235.65, up from ¥55,207,352.73 in Q1 2020, indicating an increase of 900.5%[34] Asset and Liability Growth - Total assets increased by 19.32% to CNY 7,921,715,714.88 compared to the end of the previous year[6] - The total liabilities for lease increased to RMB 230,878,686.89, reflecting the implementation of new leasing standards[16] - The company's total liabilities increased to CNY 3,322,133,838.69 from CNY 2,762,730,952.25, reflecting a rise in operational scale[24] - The total assets as of March 31, 2021, reached CNY 7,921,715,714.88, up from CNY 6,639,312,967.40 at the end of 2020, indicating strong asset growth[23] - The total liabilities as of March 31, 2021, were ¥534,152,231.47, down from ¥733,490,800.09 at the end of 2020, indicating a decrease of 27.3%[29] Cash Flow and Liquidity - Net cash flow from operating activities was CNY 160,605,600.21, a turnaround from a negative cash flow of CNY -117,839,591.24 in the same period last year, representing a 236.29% increase[6] - Cash received from sales and services amounted to CNY 1,916,148,570.07, representing a 114.07% increase compared to CNY 895,114,529.05 in the previous period, primarily due to business growth[19] - The cash flow from operating activities showed a substantial increase, indicating improved liquidity and operational efficiency[18] - The cash flow from operating activities generated a net amount of CNY 160,605,600.21, a turnaround from a net outflow of CNY 117,839,591.24 in the previous year[42] - The net cash outflow from investing activities was CNY -199,689,374.79, compared to CNY -119,800,693.18 in Q1 2020, indicating an increase in investment activities[42] Expense Management - The gross profit margin improved from 37.24% to 47.10%, an increase of 9.86 percentage points due to scale effects and project structure optimization[7] - Sales expense ratio decreased from 14.74% to 11.35%, while management expense ratio fell from 9.27% to 7.12%, resulting in a combined decrease of 5.55 percentage points[7] - The company reported a significant rise in research and development expenses, totaling RMB 106,417,377.03, which is a 53.91% increase year-over-year[17] - The company's sales expenses rose by 76.10% to RMB 303,992,901.79, driven by increased business activities[17] - Cash paid for employee compensation increased by 51.56% to CNY 462,973,219.58 from CNY 305,469,496.77, reflecting a rise in workforce costs[19] Shareholder Information - The total number of shareholders reached 30,350 by the end of the reporting period[12] - The company completed a non-public offering of 3,123,698 shares on April 9, 2021, enhancing its capital base[19] - Total equity attributable to shareholders reached ¥3,787,213,437.89, with retained earnings of ¥2,298,505,027.25[50]

Financial Performance - Net profit attributable to shareholders reached CNY 1.05 billion, a growth rate of 230.65% year-on-year[7] - Operating revenue for the first nine months was CNY 5.83 billion, reflecting a year-on-year increase of 48.65%[6] - The gross profit margin improved to 45.74%, an increase of 5.88 percentage points from the previous year[7] - Basic earnings per share rose to CNY 2.30, representing a 228.57% increase year-on-year[7] - The weighted average return on equity increased to 37.80%, up 22.23 percentage points from the previous year[7] - The company reported a significant increase in retained earnings, reaching CNY 1,880,310,512.63, compared to CNY 887,657,793.08, which is an increase of about 111.2%[25] - The total profit for Q3 2020 was ¥589,267,344.83, compared to ¥176,349,740.35 in Q3 2019, reflecting an increase of approximately 234.5%[33] - Net profit for Q3 2020 was ¥514,035,186.56, up from ¥153,337,631.69 in Q3 2019, indicating a growth of approximately 235.5%[33] Asset and Liability Management - Total assets increased by 43.67% to CNY 6.31 billion compared to the end of the previous year[6] - Accounts receivable increased by 72.26% to RMB 2,703,795,252.98 from RMB 1,569,645,502.78, primarily due to rapid business growth[16] - Cash and cash equivalents rose by 45.73% to RMB 1,391,614,779.44 from RMB 954,941,910.91, mainly from the collection of accounts receivable[15] - The total assets increased significantly, with intangible assets rising by 78.62% to RMB 142,625,333.92, due to land purchases included in intangible assets[16] - Non-current liabilities rose to CNY 606,421,790.79, compared to CNY 420,972,534.60, marking an increase of about 43.9%[25] - Total liabilities reached CNY 2,939,866,892.57, up from CNY 2,069,762,711.73, reflecting a growth of approximately 42%[25] - Owner's equity totaled CNY 3,374,907,794.39, an increase from CNY 2,325,704,600.29, indicating a growth of around 45%[25] Cash Flow and Investment Activities - The net cash flow from operating activities was CNY 943 million, up 158.51% from the same period last year[6] - Cash received from investment increased by 104.82% to ¥84,960,000, mainly due to increased external project investments[20] - Cash received from financing activities rose by 279.17% to ¥444,553,954.27, attributed to new borrowings during the reporting period[20] - The net cash flow from operating activities for the first three quarters of 2020 was CNY 943,079,173.14, up from CNY 364,807,272.97 in the previous year, representing a growth of 158.5%[40] - The net cash outflow from investing activities for the first three quarters of 2020 was CNY 449,850,829.36, worsening from CNY 214,318,945.34 in the previous year[41] - The company raised CNY 50,232,740.00 from investment activities in the first three quarters of 2020, compared to CNY 6,500,000.00 in the same period of 2019[41] Operational Efficiency - Selling expense ratio decreased from 14.99% to 11.89%, while management expense ratio fell from 9.18% to 6.64%[7] - The company is focusing on high-quality development and optimizing project and customer structures to enhance profitability[7] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[34] - The company executed new revenue recognition standards, resulting in a 100% increase in contract assets to RMB 81,859,399.88[16] Research and Development - Research and development expenses for Q3 2020 totaled ¥108,628,773.26, up from ¥86,579,860.02 in Q3 2019, representing a growth of about 25.5%[32] - The company’s research and development expenses for the first three quarters of 2020 were CNY 10,928,374.50, slightly up from CNY 10,330,089.21 in the same period of 2019[40] Future Outlook - The company has implemented new revenue and lease standards starting from 2020, which may impact future financial reporting[50] - The report indicates a focus on expanding market presence and potential new product development strategies[50] - The company is actively monitoring financial adjustments related to the new accounting standards[50]

Financial Performance - Operating income for the first nine months rose by 18.17% to CNY 3,920,266,804.62 compared to the same period last year[5] - Net profit attributable to shareholders increased by 94.16% to CNY 319,044,737.61 compared to the same period last year[5] - The weighted average return on net assets increased by 6.36 percentage points to 15.57%[6] - Basic and diluted earnings per share increased by 94.44% to CNY 0.70[6] - Net profit increased by 48.32% to RMB 827,551,174.63, driven by higher overall profits[12] - The company reported a net profit of CNY 827,551,174.63, compared to CNY 557,957,971.34 in the previous year, reflecting a growth of approximately 48.3%[19] - Total operating revenue for Q3 2019 reached ¥1,377,103,581.92, an increase of 14.5% compared to ¥1,202,848,433.53 in Q3 2018[23] - Net profit for the first three quarters of 2019 was ¥397,031,016.78, up from ¥234,560,846.55 in the same period of 2018, indicating a growth of 69.2%[24] - The company’s total profit for the first nine months of 2019 was approximately ¥299.68 million, compared to ¥218.30 million in the same period of 2018, indicating a growth of 37.2%[28] Assets and Liabilities - Total assets increased by 10.92% to CNY 4,389,463,440.61 compared to the end of the previous year[5] - Total liabilities amounted to CNY 2,152,578,732.11, an increase from CNY 2,001,799,783.14, representing a growth of approximately 7.5%[18] - Total current assets reached CNY 2,819,114,913.38, compared to CNY 2,384,894,904.41 in the same period last year, marking a growth of approximately 18.2%[17] - Non-current assets totaled CNY 1,570,348,527.23, slightly down from CNY 1,572,447,352.53, showing a decrease of about 0.1%[17] - Total assets increased to ¥2,671,974,246.72 from ¥2,435,829,319.36, marking a growth of 9.7%[22] - Total liabilities decreased to ¥684,214,703.47 from ¥710,471,590.85, a reduction of 3.7%[22] - Total liabilities reached CNY 2,001,799,783.14, with current liabilities at CNY 1,460,821,819.58 and non-current liabilities at CNY 540,977,963.56[37] Shareholder Information - Net assets attributable to shareholders increased by 14.85% to CNY 2,188,307,537.40 compared to the end of the previous year[5] - The total number of shareholders at the end of the reporting period was 14,774[9] - The largest shareholder, Liang Yaoming, holds 15.52% of the shares, with 71,068,209 shares pledged[9] - Shareholders' equity rose to ¥1,987,759,543.25, up from ¥1,725,357,728.51, reflecting a growth of 15.2%[22] Cash Flow - The net cash flow from operating activities increased by 40.58% to CNY 364,807,272.97 compared to the same period last year[5] - The company’s cash flow from operating activities increased by 54.99% to RMB 780,526,773.72, indicating higher operational expenses[13] - Total cash inflow from operating activities reached CNY 3,673,018,436.07, up from CNY 3,071,549,352.11 in the previous year, reflecting a growth of 19.6%[31] - Cash outflow from operating activities increased to CNY 3,308,211,163.10, compared to CNY 2,812,056,250.61 in 2018, marking a rise of 17.6%[31] - The net cash flow from investment activities was CNY -214,318,945.34, an improvement from CNY -336,597,557.84 in the same period last year[32] - Cash inflow from investment activities totaled CNY 41,179,657.16, significantly higher than CNY 213,687.13 in the previous year[31] Investments and Expenses - Long-term equity investments increased by 38.96% to RMB 114,227,665.05, attributed to additional investments in DRA Company Limited[12] - The company plans to invest RMB 150 million in DRA Company Limited, acquiring a 50% stake[14] - Research and development expenses for Q3 2019 were ¥86,579,860.02, compared to ¥76,249,994.84 in Q3 2018, an increase of 13.5%[24] - Management expenses surged to ¥11.29 million in Q3 2019, compared to ¥7.89 million in Q3 2018, reflecting a rise of 43.5%[27] Other Financial Metrics - Other receivables increased by 65.89% to RMB 76,978,850.52 compared to the previous period due to increased transactions during the reporting period[11] - Inventory rose by 44.81% to RMB 184,752,749.86, primarily due to the expansion of business operations[11] - Cash paid for various taxes increased by 42.24% to RMB 83,180,944.04, reflecting the growth in business scale[13] - The company experienced a credit impairment loss of approximately ¥1.41 million in Q3 2019, compared to a loss of ¥24,893.17 in Q3 2018[28]

[Definitions](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8A%E4%B9%89) This chapter provides detailed definitions of company entity abbreviations, industry terms, and technical terms used in the report, laying the foundation for understanding its content [Company Profile and Key Financial Indicators](index=8&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section provides the company's fundamental corporate information, key financial performance metrics, and details on non-recurring gains and losses for the reporting period [Company Basic Information](index=8&type=section&id=%E4%BA%8C%E3%80%81%20%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) This chapter provides the company's basic business registration information, including Chinese and English names, legal representative, registered address, and contact details for the Board Secretary and Securities Affairs Representative Company Basic Information | Item | Content | | :--- | :--- | | **Company Chinese Name** | Guangzhou Kingmed Diagnostics Group Co., Ltd. | | **Company Chinese Abbreviation** | Kingmed Diagnostics | | **Stock Code** | 603882 | | **Legal Representative** | Liang Yaoming | | **Registered Address** | No. 10, Spiral 3rd Road, Guangzhou International Bio Island, Guangzhou | [Key Accounting Data and Financial Indicators](index=9&type=section&id=%E4%B8%83%E3%80%81%20%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In the first half of 2019, the company's operating revenue grew by 20.26% year-on-year, with net profit attributable to shareholders and non-recurring net profit increasing significantly by 78.92% and 114.99% respectively, indicating strong profitability improvement, while operating cash flow increased by 35.49%, aligning with profit growth trends Key Accounting Data (Jan-Jun 2019) | Key Accounting Data | Current Period (Jan-Jun) (CNY) | Prior Period (CNY) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,543,163,222.70 | 2,114,650,118.23 | 20.26% | | Net Profit Attributable to Shareholders of Listed Company | 171,724,050.67 | 95,976,671.40 | 78.92% | | Net Profit Attributable to Shareholders of Listed Company After Non-recurring Gains/Losses | 162,264,754.74 | 75,473,918.07 | 114.99% | | Net Cash Flow from Operating Activities | 156,093,464.23 | 115,202,670.28 | 35.49% | | Net Assets Attributable to Shareholders of Listed Company | 2,036,320,991.66 | - | 6.88% (vs. End of Prior Year) | | Total Assets | 4,223,131,127.68 | - | 6.72% (vs. End of Prior Year) | Key Financial Indicators (Jan-Jun 2019) | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.38 | 0.21 | 80.95% | | Diluted Earnings Per Share (CNY/share) | 0.37 | 0.21 | 76.19% | | Weighted Average Return on Net Assets (%) | 8.62% | 5.48% | Increase by 3.14 percentage points | | Weighted Average Return on Net Assets After Non-recurring Gains/Losses (%) | 8.15% | 4.31% | Increase by 3.84 percentage points | [Non-recurring Gains/Losses and Amounts](index=10&type=section&id=%E4%B9%9D%E3%80%81%20%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) During the reporting period, the company's total non-recurring gains and losses amounted to **CNY 9.46 million**, primarily from government subsidies recognized in current profit totaling **CNY 12.51 million** Non-recurring Gains/Losses Items | Non-recurring Gains/Losses Item | Amount (CNY) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -196,285.57 | | Government Subsidies Recognized in Current Profit/Loss | 12,507,745.70 | | Other Non-operating Income and Expenses Apart from the Above | -902,751.02 | | Impact on Minority Interests | -485,655.81 | | Income Tax Impact | -1,463,757.37 | | **Total** | **9,459,295.93** | [Company Business Overview](index=11&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E5%85%AC%E5%8F%B8%E4%B8%9A%E5%8A%A1%E6%A6%82%E8%A6%81) This section outlines the company's primary business operations, significant changes in major assets, and a detailed analysis of its core competitive advantages [Main Business, Operating Model, and Industry Overview](index=11&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1%E3%80%81%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F%E5%8F%8A%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company is a leading domestic third-party medical testing and pathology diagnosis service provider, with a service network covering over 90% of China's population, operating with a customer-centric model integrating multiple technology platforms while actively exploring new precision medicine and internet healthcare models, benefiting from the Healthy China strategy, growing high-end medical demand, and tiered diagnosis and treatment policies that continuously expand market space - The company's core business is third-party medical testing and pathology diagnosis outsourcing, having established **37 central laboratories** capable of providing over **2,600 testing items** and serving over **22,000 medical clients**[29](index=29&type=chunk) - Industry development benefits from multiple favorable factors: the deepening implementation of the Healthy China strategy and related tax exemption and support policies; continuous growth in demand for high-end, personalized, and precision medical services; and the decentralization of quality medical resources, creating incremental markets for third-party laboratories[29](index=29&type=chunk)[30](index=30&type=chunk) [Significant Changes in Major Assets](index=12&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E8%B5%84%E4%BA%A7%E5%8F%91%E7%94%9F%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8C%96%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) During the reporting period, several of the company's balance sheet items underwent significant changes, with long-term equity investments increasing by **40.36%** due to increased investment in DRA Company Limited, and dividends payable rising sharply by **121.20%** due to dividend distribution, while taxes payable and non-current liabilities due within one year also saw substantial increases driven by expanding operations and debt structure adjustments Major Balance Sheet Changes | Item Name | Change from End of Prior Period (%) | Explanation | | :--- | :--- | :--- | | Long-term Equity Investments | 40.36% | Primarily due to increased investment in DRA Company Limited during the reporting period | | Construction in Progress | -60.92% | Primarily due to reclassification of construction in progress to long-term deferred expenses during the reporting period | | Taxes Payable | 70.07% | Primarily due to increased corporate income tax from expanded operations during the reporting period | | Dividends Payable | 121.20% | Primarily due to the company's dividend distribution during the reporting period | | Non-current Liabilities Due Within One Year | 40.09% | Primarily due to an increase in long-term loans with remaining maturity of less than one year at the end of the reporting period | | Minority Interests | -39.75% | Primarily due to increased losses from non-wholly owned subsidiaries during the reporting period | [Core Competitiveness Analysis](index=14&type=section&id=%E4%B8%89%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competencies are manifested in six areas: a stringent quality management system, internationally leading and comprehensive technology platforms, integrated clinical and disease-oriented services, strong scientific innovation and R&D capabilities, extensive market and logistics networks, and a talent pipeline aligned with high-quality development - Quality and Technology Advantages: Possessing **36 domestic and international certification and accreditation certificates**, leading the industry; establishing **four high-tech centers** and comprehensive testing technology platforms, capable of providing over **2,600 testing items**[32](index=32&type=chunk) - Service and Network Advantages: Clinical and disease-oriented, with a team of nearly **600 pathologists**; a nationwide service network with over **2,000 logistics points**, and collaboration with nearly **400 medical institutions** to co-establish regional diagnostic centers, supporting tiered diagnosis and treatment[32](index=32&type=chunk) - Innovation and Talent Advantages: Building an integrated industry-university-research open innovation system, deeply collaborating with top domestic and international academician teams, research institutions, and enterprises; possessing a high-level talent pipeline led by academicians and composed of experts from home and abroad[32](index=32&type=chunk) [Discussion and Analysis of Operations](index=15&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section provides a comprehensive discussion and analysis of the company's operational performance during the reporting period, including strategic achievements, financial highlights, and an assessment of potential risks [Discussion and Analysis of Operations](index=15&type=section&id=%E4%B8%80%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) During the reporting period, the company's high-quality development showed initial results with steady growth in operating performance, as it fully advanced its 'clinical and disease-oriented' strategic transformation, enhancing the depth and diversity of clinical services, strengthening middle and back-office integration and synergy, seizing high ground in R&D innovation through independent and open collaboration, and continuously fulfilling social responsibility with professionalism to enhance brand value - Strategic Transformation Implementation: Fully advancing the 'clinical and disease-oriented' transformation, joining national-level disease alliances, connecting with top medical resources, and building diversified disease consultation platforms[33](index=33&type=chunk) - R&D Innovation Achievements: In independent innovation, the Group R&D Center led the completion of nearly **250 new project developments**; in open innovation, established partnerships with leading domestic and international institutions such as PGDx, Q2 Solutions, and Huawei, promoting scientific research commercialization[33](index=33&type=chunk) Major Operating Data Changes | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change (%) | Explanation for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,543,163,222.70 | 2,114,650,118.23 | 20.26% | Due to increased business volume | | Operating Cost | 1,531,300,520.89 | 1,289,435,479.59 | 18.76% | Cost increase due to increased business volume | | Net Cash Flow from Operating Activities | 156,093,464.23 | 115,202,670.28 | 35.49% | Due to expanded sales scale and increased collections | | Net Cash Flow from Financing Activities | -72,216,809.24 | 56,251,590.26 | -228.38% | Due to decreased loans and increased dividend payments | - At the end of the reporting period, the company's external equity investment balance was **CNY 115 million**, an increase of **CNY 33.18 million** from the end of the prior year, primarily due to the investment in DRA COMPANY LIMITED[41](index=41&type=chunk)[42](index=42&type=chunk) [Potential Risks](index=19&type=section&id=(%E4%BA%8C)%20%E5%8F%AF%E8%83%BD%E9%9D%A2%E5%AF%B9%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces key risks including intensified market competition, technological innovation pressure, and policy uncertainties; operational management risks related to business compliance and holding company structure; and quality control risks concerning sample management and professional practice - Market and Policy Risks: Intensified industry competition, increased pressure for technological innovation, and inconsistent policy implementation in some regions may constrain the company's development[46](index=46&type=chunk) - Operational Management Risks: Large business scale poses compliance risks from improper commercial conduct by downstream clients or employees, while the holding company structure carries risks of inadequate management system implementation[46](index=46&type=chunk) - Quality Control Risks: The state of testing samples is influenced by external factors, potentially affecting test results; erroneous test results could lead to medical liability and reputational damage[46](index=46&type=chunk) [Significant Matters](index=19&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section details significant corporate matters, including the profit distribution plan, fulfillment of commitments, equity incentive schemes, and the company's poverty alleviation efforts during the reporting period [Profit Distribution Plan](index=20&type=section&id=%E4%BA%8C%E3%80%81%20%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E9%A2%84%E6%A1%88) The company has no profit distribution or capital reserve to share capital increase plan for the first half of 2019 - The proposed profit distribution plan and capital reserve to share capital increase plan for the first half of 2019 is 'No'[49](index=49&type=chunk) [Fulfillment of Commitments](index=21&type=section&id=%E4%B8%89%E3%80%81%20%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) During the reporting period, the company and relevant parties, including the actual controller and shareholders, strictly fulfilled all commitments made during the initial public offering, such as resolving horizontal competition, dividend distribution, share lock-up, and stabilizing stock price, with no instances of unfulfilled commitments - The company's controlling shareholder and actual controller, Liang Yaoming, and his concerted parties, committed not to engage in any activities that compete with the company's main business while holding company shares[51](index=51&type=chunk) - The company committed to generally conduct cash dividends once a year within three years after listing, with the distributed profit in cash generally not less than **10%** of the distributable profit realized in that year[51](index=51&type=chunk)[53](index=53&type=chunk) - The company formulated a stock price stabilization plan, which, upon triggering specific conditions, will sequentially implement measures such as company share repurchases, actual controller share increases, and director and senior management share increases to stabilize the stock price[58](index=58&type=chunk)[59](index=59&type=chunk) [Equity Incentive Plan](index=27&type=section&id=%E4%B9%9D%E3%80%81%20%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D) In April 2019, the company's 2019 stock option incentive plan was approved by the general meeting of shareholders, aiming to incentivize senior management, core technical personnel, and middle management - The company implemented a stock option incentive plan in 2019, with beneficiaries including senior management, core technical personnel, and middle management[61](index=61&type=chunk) [Poverty Alleviation Efforts](index=30&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%20%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E6%89%B6%E8%B4%AB%E5%B7%A5%E4%BD%9C%E6%83%85%E5%86%B5) During the reporting period, the company actively engaged in targeted poverty alleviation, leveraging its core healthcare business to invest a total of **CNY 7.41 million** in funds and in-kind donations across industrial, health, and social poverty alleviation, supporting the improvement of medical standards in impoverished areas and health security for special populations through co-built laboratories, free clinics, and special fund establishment Summary of Targeted Poverty Alleviation Achievements (Unit: CNY 10,000) | Indicator | Amount and Implementation Status | | :--- | :--- | | **I. Overall Situation** | **741.42** | | Of which: 1. Funds | 29.60 | | 2. In-kind Donations (Valued) | 711.82 | | **II. Itemized Investment** | | | 1. Industrial Development for Poverty Alleviation | 611.18 | | 5. Health Poverty Alleviation | 105.24 | | 8. Social Poverty Alleviation | 25.00 | - Industrial Poverty Alleviation: Invested **CNY 6.11 million** in **24 impoverished counties** nationwide to establish co-built medical laboratories, enhancing disease diagnostic capabilities in these areas[71](index=71&type=chunk) - Health Poverty Alleviation: Conducted free clinics and screening donation activities for diseases such as thalassemia, tuberculosis, and cervical cancer, collaborated with foundations to rescue children with inherited metabolic diseases, and established a special fund for maternal and child health[71](index=71&type=chunk) [Changes in Ordinary Shares and Shareholder Information](index=33&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E6%99%AE%E9%80%9A%E8%82%A1%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section details the company's ordinary share capital changes and provides an overview of its shareholder structure, including the total number of shareholders and the top ten shareholders [Shareholder Information](index=33&type=section&id=%E4%BA%8C%E3%80%81%20%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had **14,216 ordinary shareholders**, with actual controller Liang Yaoming as the largest shareholder holding **15.52%**; institutional investors, including CDB Capital, Guochuang Kaiyuan, and Gao Yi Asset, constituted a significant portion of the top ten shareholders - As of the end of the reporting period, the company had a total of **14,216 ordinary shareholders**[79](index=79&type=chunk) Top Ten Shareholders' Shareholding | Shareholder Name | Shares Held at Period End (shares) | Proportion (%) | | :--- | :--- | :--- | | Liang Yaoming | 71,068,209 | 15.52 | | CDB Capital Phase I (Shanghai) Equity Investment Partnership (Limited Partnership) | 47,099,597 | 10.29 | | Guochuang Kaiyuan Equity Investment Fund (Limited Partnership) | 41,371,796 | 9.04 | | Guangzhou Xinmanyu Investment Management Partnership (Limited Partnership) | 36,042,650 | 7.87 | | Tianjin Junruiqi Equity Investment Partnership (Limited Partnership) | 27,646,261 | 6.04 | | Guangzhou Shengboyu Investment Management Partnership (Limited Partnership) | 24,346,350 | 5.32 | | Shanghai Gao Yi Asset Management Partnership (Limited Partnership) - Gao Yi Linshan No. 1 Yuanwang Fund | 22,000,000 | 4.80 | | Guangzhou Shengyufang Investment Management Enterprise (Limited Partnership) | 21,000,000 | 4.59 | | Guangzhou Ruizhi Investment Management Partnership (Limited Partnership) | 18,788,000 | 4.10 | | Beijing Junlian Maolin Equity Investment Partnership (Limited Partnership) | 10,757,615 | 2.35 | [Information on Directors, Supervisors, and Senior Management](index=36&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%83%85%E5%86%B5) This section provides details on the equity incentive grants to the company's directors, supervisors, and senior management during the reporting period [D&O Equity Incentive Status](index=36&type=section&id=(%E4%BA%8C)%20%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E8%A2%AB%E6%8E%88%E4%BA%88%E7%9A%84%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E6%83%85%E5%86%B5) During the reporting period, the company granted stock options totaling **820,000 shares** to two senior executives, Yu Shihui and Wang Linglai, as part of its equity incentive plan Senior Management Equity Incentive Grants | Name | Position | New Stock Options Granted During Reporting Period (shares) | | :--- | :--- | :--- | | Yu Shihui | Senior Management | 160,000 | | Wang Linglai | Senior Management | 660,000 | | **Total** | / | **820,000** | [Financial Report](index=38&type=section&id=%E7%AC%AC%E5%8D%81%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) This section presents the company's unaudited consolidated and parent company financial statements, details significant changes in accounting policies and estimates, outlines tax information, and provides comprehensive notes to the consolidated financial statements [Financial Statements](index=38&type=section&id=%E4%BA%8C%E3%80%81%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This chapter provides the unaudited consolidated and parent company financial statements for the first half of 2019, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, comprehensively reflecting the company's financial position at the end of the reporting period and its operating results and cash flows during the period Consolidated Balance Sheet Summary (June 30, 2019) | Item | Amount (CNY) | | :--- | :--- | | **Total Assets** | **4,223,131,127.68** | | Total Current Assets | 2,661,132,301.39 | | Total Non-current Assets | 1,561,998,826.29 | | **Total Liabilities** | **2,156,551,654.88** | | Total Current Liabilities | 1,715,975,694.32 | | Total Non-current Liabilities | 440,575,960.56 | | **Total Owners' Equity** | **2,066,579,472.80** | | Owners' Equity Attributable to Parent Company | 2,036,320,991.66 | Consolidated Income Statement Summary (Jan-Jun 2019) | Item | Amount (CNY) | | :--- | :--- | | **Total Operating Revenue** | **2,543,163,222.70** | | **Total Operating Cost** | **2,318,973,490.98** | | Operating Profit | 219,629,047.19 | | Total Profit | 220,681,276.43 | | **Net Profit** | **173,436,439.13** | | Net Profit Attributable to Parent Company Shareholders | 171,724,050.67 | [Changes in Significant Accounting Policies and Estimates](index=76&type=section&id=44.%20%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%92%8C%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1%E7%9A%84%E5%8F%98%E6%9B%B4) During the reporting period, the company adopted new financial instrument standards as required by the Ministry of Finance and adjusted its financial statement format, with these changes primarily impacting the classification and presentation of financial assets, such as reclassifying 'available-for-sale financial assets' to 'other non-current financial assets' and retrospectively adjusting items like 'notes and accounts receivable' - The company began implementing a series of newly revised financial instrument standards, including 'Accounting Standard for Business Enterprises No. 22 – Recognition and Measurement of Financial Instruments'[204](index=204&type=chunk) - In accordance with Cai Kuai [2019] No. 6, the company adjusted its financial statement format and retrospectively changed the presentation of relevant financial statements, for example, by separating 'notes and accounts receivable' into 'notes receivable' and 'accounts receivable'[205](index=205&type=chunk)[206](index=206&type=chunk) [Taxation](index=82&type=section&id=%E5%85%AD%E3%80%81%20%E7%A8%8E%E9%A1%B9) The company's main taxes include Value-Added Tax and Corporate Income Tax, with VAT rates ranging from **6% to 13%** depending on business type, and while the parent company's CIT rate is **25%**, several subsidiaries enjoy a preferential **15%** rate due to being recognized as high-tech enterprises or located in Western Development regions, in addition to medical services provided by healthcare institutions being exempt from VAT - Medical services provided by the company are exempt from Value-Added Tax as per Cai Shui (2016) No. 36[222](index=222&type=chunk) - Several subsidiaries are recognized as high-tech enterprises or comply with Western Development tax policies, enjoying a preferential **15%** Corporate Income Tax rate[222](index=222&type=chunk)[224](index=224&type=chunk)[230](index=230&type=chunk) [Notes to Consolidated Financial Statement Items](index=89&type=section&id=%E4%B8%83%E3%80%81%20%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This chapter provides detailed explanations of the composition and changes in major items within the consolidated financial statements, including monetary funds, accounts receivable, inventories, fixed assets, long-term equity investments, various liabilities, and key financial data such as revenue and cost [Accounts Receivable](index=90&type=section&id=5%E3%80%81%20%E5%BA%94%E6%94%B6%E8%B4%A6%E6%AC%BE) As of the period end, the company's accounts receivable book value was **CNY 1.64 billion**, a **23.8%** increase from the beginning of the period, with **95.85%** of accounts receivable being within one year, indicating a healthy aging structure, and the company has provisioned **CNY 50.79 million** for bad debts using the aging analysis method Accounts Receivable Aging Distribution | Aging | Balance at Period End (CNY) | | :--- | :--- | | Within 1 Year | 1,624,246,342.95 | | 1 to 2 Years | 48,794,083.19 | | 2 to 3 Years | 17,106,362.96 | | Over 3 Years | 4,355,762.88 | | **Total** | **1,694,502,551.98** | [Long-term Equity Investments](index=99&type=section&id=17%E3%80%81%20%E9%95%BF%E6%9C%9F%E8%82%A1%E6%9D%83%E6%8A%95%E8%B5%84) At period end, the book balance of long-term equity investments was **CNY 115 million**, an increase of **CNY 33.18 million** from the beginning of the period, primarily due to an additional **CNY 35 million** investment in associate DRA Company Limited during the current period Changes in Long-term Equity Investments | Investee | Balance at Beginning of Period (CNY) | Increase During Current Period (CNY) | Balance at End of Period (CNY) | | :--- | :--- | :--- | :--- | | DRA Company Limited | 79,113,369.86 | 35,000,000.00 | 112,613,369.86 | | Other Associates | 3,091,160.36 | 0 | 2,768,501.56 | | **Total** | **82,204,530.22** | **35,000,000.00** | **115,381,871.42** | [Operating Revenue and Operating Cost](index=121&type=section&id=61%E3%80%81%20%E8%90%A5%E4%B8%9A%E6%94%B6%E5%85%A5%E5%92%8C%E8%90%A5%E4%B8%9A%E6%88%90%E6%9C%AC) In the first half of 2019, the company achieved operating revenue of **CNY 2.54 billion**, with primary business revenue at **CNY 2.41 billion**, accounting for **94.84%**, and a gross profit margin for primary business of approximately **39.65%** Composition of Operating Revenue and Operating Cost (Current Period) | Item | Revenue (CNY) | Cost (CNY) | | :--- | :--- | :--- | | Primary Business | 2,412,034,276.76 | 1,455,686,819.94 | | Other Businesses | 131,128,945.94 | 75,613,700.95 | | **Total** | **2,543,163,222.70** | **1,531,300,520.89** | [Reference Documents Catalog](index=166&type=section&id=%E7%AC%AC%E5%8D%81%E4%B8%80%E8%8A%82%20%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E7%9B%AE%E5%BD%95) This section lists the reference documents, including financial statements signed and sealed by the company's responsible person, chief accountant, and head of the accounting department, as well as originals of all company documents and announcements publicly disclosed on the website designated by the China Securities Regulatory Commission during the reporting period - This chapter lists the reference documents, including financial statements signed and sealed by the company's responsible person, chief accountant, and head of the accounting department, as well as originals of all company documents and announcements publicly disclosed on the website designated by the China Securities Regulatory Commission during the reporting period[429](index=429&type=chunk)