Financial Performance - The company's operating revenue for the first half of 2022 reached ¥8,750,033,435.18, representing a 19.11% increase compared to ¥7,346,375,296.97 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was ¥576,424,736.43, up 14.20% from ¥504,750,207.03 in the previous year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥559,318,987.64, reflecting a 13.31% increase from ¥493,616,305.95 in the same period last year[21]. - The net cash flow from operating activities was ¥1,093,287,887.73, an increase of 11.75% compared to ¥978,367,773.33 in the previous year[21]. - The company's basic earnings per share increased by 10.32% to CNY 0.802 compared to the same period last year[22]. - The company's net profit attributable to shareholders grew by 14.20%, driven by organic growth from existing stores and acquisitions[23]. - The company's revenue increased by 19.11% year-on-year, attributed to same-store sales growth and expansion through new openings and acquisitions[22]. - The total number of stores increased by 1,391, with 546 new stores opened and 363 acquired during the reporting period, bringing the total to 9,200 stores[22]. Assets and Liabilities - Total assets at the end of the reporting period amounted to ¥17,844,900,362.51, up 4.65% from ¥17,052,036,874.58 at the end of the previous year[21]. - The net assets attributable to shareholders at the end of the reporting period were ¥7,835,039,502.23, a 4.73% increase from ¥7,481,306,065.48 at the end of the previous year[21]. - Total liabilities decreased by 21.23% to ¥2,787,772,523.25, primarily due to a reduction in bank acceptance bills payable[74]. - The company’s total liabilities were CNY 7,056,504,329.59, indicating a significant financial position[161]. Market Position and Growth - The retail pharmacy industry is experiencing rapid growth, with a 10.3% year-on-year increase in retail pharmacy sales, reaching CNY 4,774 billion in 2021[31]. - The concentration of the retail pharmacy industry is increasing, with the top 100 companies accounting for over 65% of total market sales[30]. - The company is positioned to benefit from ongoing healthcare reforms and the increasing demand for health-related products due to an aging population[28]. - The market share of the top 10 retail chains in China grew from 13.56% in 2015 to 26.97% in 2020, while the top 50 chains' market share increased from 26.87% to 41.24% during the same period[34]. - The company operates in ten provinces and cities, including Hunan, Hubei, Shanghai, Jiangsu, and Guangdong, with a strong competitive advantage in Central, Eastern, and Northern China[50]. Strategic Initiatives - The company has implemented a digital management platform covering six core operational systems, enhancing operational efficiency and agility[52]. - The company has established seven modern logistics centers equipped with advanced technology, improving warehouse operational efficiency and supply chain management[55]. - The company is actively expanding its new retail ecosystem, integrating online and offline health management services[67]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[125]. - The company is exploring potential acquisition opportunities to enhance its market share and product portfolio[140]. Environmental and Social Responsibility - The company has implemented measures to reduce carbon emissions, promoting low-carbon work and lifestyle practices among employees[91]. - The company has invested in eco-friendly materials and technologies during store renovations to optimize resource usage and minimize environmental impact[90]. - The company continues to comply with national environmental protection laws and regulations, contributing to environmental protection efforts[90]. Shareholder Information - The company held its 2021 annual general meeting on May 31, 2022, with 31 shareholders present, representing 507,816,934 voting shares, accounting for 70.6512% of the total valid voting shares[83]. - No profit distribution or capital reserve transfer plans were proposed for the half-year period, with no dividends or stock bonuses declared[85]. - The total number of ordinary shareholders reached 15,422 by the end of the reporting period[108]. - The largest shareholder, Ningbo Meishan Free Trade Port Area Jikang Enterprise Management Partnership, holds 167,801,400 shares, accounting for 23.35% of total shares[110]. Compliance and Governance - The company has not faced any environmental protection violations or administrative penalties during the reporting period[90]. - The company has not reported any significant changes in its business operations or management personnel during the reporting period[84]. - The company has not engaged in any significant related party transactions during the reporting period[99]. - The company has not reported any significant changes in the audit opinion from the previous annual report[99].

Financial Performance - Total assets increased by 2.84% to 15.76 billion RMB compared to the end of the previous year[4] - Net profit attributable to shareholders of the listed company rose by 29.39% to 241.29 million RMB[4] - Operating revenue grew by 19.09% to 3.63 billion RMB[4] - Net cash flow from operating activities increased by 35.75% to 595.36 million RMB[4] - Basic earnings per share increased by 27.68% to 0.452 RMB per share[4] - Diluted earnings per share increased by 26.91% to 0.448 RMB per share[4] - Weighted average return on equity (ROE) increased by 0.04 percentage points to 4.17%[4] - Net profit for Q1 2021 was 361,029,960.67 RMB, a 28.2% increase from 281,622,424.85 RMB in Q1 2020[24] - Total operating revenue for Q1 2021 reached 3,629,778,943.99 RMB, a 19.1% increase compared to 3,047,958,361.07 RMB in Q1 2020[24] - Net profit attributable to shareholders of the parent company rose to 241,294,627.81 RMB in Q1 2021, compared to 186,491,558.88 RMB in Q1 2020, an increase of 29.4%[25] - Basic earnings per share (EPS) for Q1 2021 were 0.452 RMB, up from 0.354 RMB in Q1 2020, a growth of 27.7%[25] - Total comprehensive income for Q1 2021 was 269,784,174.96 RMB, compared to 210,435,827.00 RMB in Q1 2020, an increase of 28.2%[25] - Net profit for Q1 2021 was 269,784,174.96 RMB, compared to 210,435,827.00 RMB in Q1 2020, an increase of 28.2%[25] - Sales revenue from goods and services reached 932.36 million yuan, up 13.2% year-over-year[31] - Operating income for the first quarter of 2021 was RMB 786,831,269.71, with no adjustments made[43] - Net profit for the first quarter of 2021 was RMB 26,048,325.06, a decrease of RMB 1,260,434.36 after adjustments[43] Cash Flow - Net cash flow from operating activities increased by 35.75% to 595.36 million RMB[4] - Operating cash flow increased by 35.75% to 595,356,468.20 RMB, driven by sales growth[11] - Investment cash flow decreased by 587.56% to -544,655,383.45 RMB due to reduced redemption of financial products[11] - Operating cash flow from sales of goods and services reached 3,765,985,701.59 RMB in Q1 2021, compared to 3,302,448,421.40 RMB in Q1 2020, an increase of 14.0%[28] - Cash flow from operating activities totaled 3,801,686,595.96 RMB in Q1 2021, up from 3,364,060,181.81 RMB in Q1 2020, a growth of 13.0%[28] - Operating cash flow increased to 595.36 million yuan, up 35.7% year-over-year[29] - Net cash flow from investment activities was -544.66 million yuan, a significant decrease compared to -79.22 million yuan in the previous year[29] - Net cash flow from financing activities was -473.37 million yuan, compared to 222.94 million yuan in the previous year[29] - Cash and cash equivalents decreased by 422.67 million yuan, compared to an increase of 582.30 million yuan in the previous year[30] - Net cash flow from operating activities was 44.76 million yuan, slightly down from 47.78 million yuan in the previous year[31] - Net cash flow from investment activities was -348.25 million yuan, compared to -21.43 million yuan in the previous year[31] - Net cash flow from financing activities was -354.77 million yuan, compared to 219.88 million yuan in the previous year[32] - Cash and cash equivalents decreased by 658.27 million yuan, compared to an increase of 246.22 million yuan in the previous year[32] - Cash flow from operating activities increased by RMB 143,787,165.11 to RMB 438,576,419.94 after adjustments[46] - Cash received from sales of goods and services was RMB 3,302,448,421.40, with no adjustments made[45] - Cash paid for goods and services was RMB 2,106,211,416.70, with no adjustments made[46] - Cash paid to employees and for employee benefits was RMB 564,443,479.19, with no adjustments made[46] - Operating activities generated a net cash inflow of RMB 47.78 million, with RMB 865.42 million in cash inflows from sales and services[49] - Cash outflow from operating activities was RMB 817.64 million, including RMB 497.66 million for purchasing goods and services[49] - The company invested RMB 14.44 million in fixed assets and intangible assets, resulting in a net cash outflow of RMB 21.43 million from investment activities[50] - Financing activities generated a net cash inflow of RMB 270.24 million, with RMB 280.00 million from borrowings[50] - Cash and cash equivalents increased by RMB 246.22 million, reaching RMB 657.22 million at the end of the period[51] Assets and Liabilities - Total assets increased to 15.76 billion RMB as of March 31, 2021, compared to 15.32 billion RMB at the end of 2020[20] - Current assets totaled 7.74 billion RMB, with cash and cash equivalents at 2.90 billion RMB[18] - Trade receivables grew to 901.94 million RMB, up from 830.30 million RMB at the end of 2020[18] - Inventory increased to 2.28 billion RMB from 2.17 billion RMB at the end of 2020[18] - Total liabilities decreased to 8.48 billion RMB from 9.67 billion RMB at the end of 2020[20] - Short-term borrowings significantly reduced to 100.09 million RMB from 380.32 million RMB at the end of 2020[19] - Equity attributable to owners of the parent company increased to 6.95 billion RMB from 5.35 billion RMB at the end of 2020[20] - Retained earnings grew to 2.22 billion RMB, up from 1.98 billion RMB at the end of 2020[20] - Fixed assets increased to 600.08 million RMB from 576.69 million RMB at the end of 2020[18] - Development expenditure increased to 12.43 million RMB from 4.58 million RMB at the end of 2020, indicating increased R&D investment[19] - Total assets as of Q1 2021 were 9,094,277,667.63 RMB, a slight decrease from 9,202,947,614.82 RMB at the end of 2020[21] - Total liabilities decreased to 4,100,799,197.26 RMB in Q1 2021 from 5,597,905,463.87 RMB at the end of 2020[22] - Shareholders' equity increased to 4,993,478,470.37 RMB in Q1 2021, up 38.5% from 3,605,042,150.95 RMB at the end of 2020[22] - Accounts receivable increased to 201,061,630.86 RMB in Q1 2021 from 166,539,867.31 RMB at the end of 2020[21] - Inventory increased to 387,167,342.31 RMB in Q1 2021 from 372,186,620.09 RMB at the end of 2020[21] - Long-term equity investments remained stable at 1,830,925,329.68 RMB in Q1 2021[21] - Total assets increased by 2.37 billion RMB, reaching 15.32 billion RMB[36] - Total liabilities increased by 2.50 billion RMB, reaching 9.67 billion RMB[35] - Current assets decreased by 407.04 million RMB, totaling 7.65 billion RMB[34] - Non-current assets increased by 2.78 billion RMB, reaching 7.67 billion RMB[34] - Current liabilities increased by 789.74 million RMB, totaling 5.93 billion RMB[35] - Non-current liabilities increased by 1.71 billion RMB, reaching 3.74 billion RMB[35] - Owner's equity decreased by 126.37 million RMB, totaling 5.66 billion RMB[36] - Inventory remained stable at 2.17 billion RMB[34] - Other receivables remained stable at 207.60 million RMB[34] - Prepayments decreased by 34.76 million RMB, totaling 1.09 billion RMB[37] - Total assets increased by 529,916,282.88 RMB, reaching 9,202,947,614.82 RMB[38] - Non-current assets increased by 659,036,013.11 RMB, totaling 3,114,326,678.01 RMB[38] - Total liabilities increased by 559,768,172.62 RMB, reaching 5,597,905,463.87 RMB[39] Expenses and Costs - Operating costs for Q1 2021 were 3,283,778,888.16 RMB, up 18.2% from 2,778,611,129.34 RMB in Q1 2020[24] - Sales expenses increased to 227,813,329.88 RMB in Q1 2021, up from 194,850,620.39 RMB in Q1 2020, a rise of 16.9%[26] - R&D expenses grew to 2,627,355.18 RMB in Q1 2021, compared to 1,873,971.10 RMB in Q1 2020, an increase of 40.2%[26] - Interest income surged to 15,265,231.43 RMB in Q1 2021, up from 5,988,189.53 RMB in Q1 2020, a significant growth of 154.9%[26] - Cash paid for employee compensation increased to 198.68 million yuan, up 10.0% year-over-year[31] - Operating costs increased by 6,692,634.80 RMB, totaling 2,778,611,129.34 RMB[40] - Sales expenses decreased by 18,749,827.37 RMB, amounting to 728,375,576.55 RMB[40] - Financial expenses increased by 25,499,654.05 RMB, reaching 38,029,865.23 RMB[40] - Sales expenses decreased by RMB 4,559,054.03 to RMB 194,850,620.39 after adjustments[43] - Financial expenses increased by RMB 6,246,112.28 to RMB 11,516,984.70 after adjustments[43] Investments and Acquisitions - Transactional financial assets increased by 42.88% to 1,064,243,087.67 RMB due to increased investment in idle funds[10] - Development expenditure surged by 171.33% to 12,431,959.45 RMB, driven by capitalizable expenses for the O2O health cloud service platform[11] - Completed 5 M&A transactions in Q1, involving 108 stores, with 53 stores already acquired and 55 stores in the process of acquisition[14] - Investment activities generated a net cash outflow of RMB 79.22 million, primarily due to payments for acquiring subsidiaries and other long-term assets[47] - The company received RMB 449.38 million from other investment-related activities, contributing to a total cash inflow of RMB 449.42 million from investment activities[47] - Cash outflow from investment activities totaled RMB 528.63 million, including RMB 57.67 million for the purchase of fixed assets and intangible assets[47] Shareholders and Equity - The total number of shareholders at the end of the reporting period was 16,859[8] - Capital reserve increased by 59.66% to 4,142,180,810.40 RMB due to the conversion of convertible bonds[11] - Equity attributable to owners of the parent company increased to 6.95 billion RMB from 5.35 billion RMB at the end of 2020[20] - Shareholders' equity increased to 4,993,478,470.37 RMB in Q1 2021, up 38.5% from 3,605,042,150.95 RMB at the end of 2020[22] - Owner's equity decreased by 126.37 million RMB, totaling 5.66 billion RMB[36] Non-Recurring Items - Non-recurring gains and losses amounted to 8.12 million RMB[7] Store Expansion and Operations - Net increase of 288 stores in Q1 2021, including 195 self-built stores, 53 acquired stores, and 58 new franchise stores, with a total of 6,279 stores by the end of the reporting period[11] - Total operating area reached 658,998 square meters, with an additional 24,007 square meters added in Q1 (excluding franchise stores)[11] - Daily sales per square meter for flagship stores was 146.18 RMB, while community stores averaged 59.52 RMB[14] R&D and Development - Development expenditure surged by 171.33% to 12,431,959.45 RMB, driven by capitalizable expenses for the O2O health cloud service platform[11] - R&D expenses for Q1 2021 were 2,627,557.11 RMB, a 40.2% increase compared to 1,873,971.10 RMB in Q1 2020[24] - R&D expenses grew to 2,627,355.18 RMB in Q1 2021, compared to 1,873,971.10 RMB in Q1 2020, an increase of 40.2%[26] Financing Activities - Short-term loans decreased by 73.68% to 100,088,611.12 RMB due to repayment of bank loans[11] - Financing activities generated a net cash inflow of RMB 366.72 million, with RMB 375.70 million from borrowings and RMB 1.00 million from minority shareholders[47] - Financing activities generated a net cash inflow of RMB 270.24 million, with RMB 280.00 million from borrowings[50] Miscellaneous - The company implemented the new leasing standard starting from January 1, 2021, with retrospective adjustments[5] - Comprehensive income for the first quarter of 2021 was RMB 215,455,303.10, a decrease of RMB 5,019,476.10 compared to the previous period[42] - Basic earnings per share (EPS) for the first quarter of 2021 was RMB 0.362, a decrease of RMB 0.008 compared to the previous period[42] - The company's cash and cash equivalents increased by RMB 582.30 million, reaching a total of RMB 1.32 billion at the end of the period[48]