Financial Performance - The company reported a total revenue of RMB 1.5 billion for the first half of 2023, representing a year-on-year increase of 20%[14]. - Future guidance estimates a revenue growth of 25% for the full year 2023, driven by new product launches and market expansion[14]. - The company’s revenue for the first half of 2023 decreased by 5.37% to approximately ¥540.71 million, primarily due to price reductions from "volume-based procurement" affecting product sales[193]. - Operating costs increased by 2.55% to approximately ¥149.30 million, driven by higher sales volumes resulting from "volume-based procurement"[193]. - Research and development expenses rose by 3.16% to approximately ¥74.57 million, reflecting the company's commitment to new product and technology development[193]. - Accounts receivable at the end of the reporting period amounted to ¥578.93 million, an increase of ¥488.75 million compared to the beginning of the period, indicating potential cash flow risks[185]. - Inventory increased by 49.12% to approximately ¥387.39 million, as the company stocked products in response to market demand[197]. - Management expenses increased by 22.59% to approximately ¥18.96 million, primarily due to increased depreciation of fixed assets[193]. - The company reported a net cash outflow from operating activities of approximately -¥38.97 million, an improvement from -¥81.51 million in the previous year[193]. Research and Development - The company is investing RMB 200 million in R&D for advanced medical technologies over the next two years[14]. - The total R&D investment amounted to 74,572,384.70, representing 13.79% of total revenue, an increase of 1.14 percentage points compared to the previous period[27]. - The R&D investment capitalization ratio remains at 0.00%, indicating that all R&D expenses are currently expensed[27]. - The company is currently in the clinical trial phase for improved hip joint series products, with a total investment of 9,693.46, including 850.58 in the current period[29]. - The company is developing innovative single-compartment knee joint prosthetics to minimize nerve damage, enhancing the longevity of the prosthetics[29]. - The company is actively investing in R&D for new materials such as porous tantalum and magnesium alloys, aiming to enhance its product line and respond to national procurement policies[178]. - The company emphasizes continuous R&D investment to enhance its technological capabilities and product offerings, reflecting its commitment to innovation[157]. - The company has filed 93 new patent applications this period, with 73 patents granted, bringing the total to 1,000 applications and 528 granted patents[153]. - The number of R&D personnel increased to 462, accounting for 33.50% of the total workforce, up from 23.28% the previous year[166]. Product Development and Innovation - The company plans to launch three new orthopedic products by Q4 2023, targeting a market expansion of 10% in the orthopedic device sector[14]. - The company is in the registration phase for new product innovations, including knee and shoulder joint prosthetics, to enhance market competitiveness[29]. - The company has developed a range of high-end medical devices, including various orthopedic implant products, which are classified as Class III medical devices due to their significant impact on human health[86]. - The company has developed a full range of spinal internal fixation systems and is expanding its product line to include orthopedic robots and other advanced technologies[90]. - The company has developed a comprehensive oral ecosystem solution, covering orthodontics, implants, and maxillofacial surgery[151]. - The company has achieved significant advancements in sports medicine, obtaining registration for seven new products in this field[151]. - The company has obtained 102 medical device registration certificates in China, including 34 Class III, 21 Class II, and 47 Class I devices, enhancing its product line and market competitiveness[152]. - The company has received registration certificates in 19 countries, including Ukraine, South Korea, and Mexico, indicating strong international market competitiveness[153]. Market Position and Strategy - The company is a leading domestic enterprise in the orthopedic implant medical device sector, with a comprehensive product line and strong market competitiveness[89]. - The orthopedic implant market in China is expected to maintain a continuous growth momentum, driven by improved medical conditions and social security systems[85]. - The company is focusing on expanding its market share in the spinal and sports medicine product lines while maintaining its position in the joint product line[178]. - The company is actively developing international markets and enhancing its international business team and marketing investments[89]. - The company is adapting to changes in sales models due to policies like "volume-based procurement," which may impact traditional revenue streams[181]. Quality Control and Compliance - The company has established a strict quality control system to ensure the safety and effectiveness of orthopedic medical devices, which is crucial for expanding market share and establishing competitive advantages[171]. - The company’s R&D is managed according to ISO 13485 and ISO 9001 standards, ensuring high-quality product development processes[109]. - The company has obtained ISO 9001 and ISO 13485 quality management system certifications, ensuring product reliability and stability in the market[176]. Risks and Challenges - The company is facing risks related to the supply of ceramic materials from CeramTec GmbH, which may affect production due to international trade disputes[36]. - The company faces risks related to market competition, particularly from international brands like Johnson & Johnson and Medtronic, which dominate the domestic market[182]. - The company is actively monitoring the impact of national procurement policies on product pricing and is enhancing its product innovation capabilities to mitigate risks[186]. - The company faced risks from reliance on a single overseas supplier for core materials, which could impact operations if supply issues arise[186].

Financial Performance - For the six months ended June 30, 2023, the company reported operating revenue of RMB 540,706,888.57, a significant increase from RMB 571,391,616.43 in the same period of 2022[6]. - The company's operating profit for the same period was RMB 138,459,630.64, compared to RMB 174,637,494.77 in 2022, indicating a decrease in profitability[6]. - The net profit for the six months ended June 30, 2023, was RMB 125,985,161.70, a decrease of approximately 19.7% compared to RMB 156,982,496.60 for the same period in 2022[8]. - The net profit attributable to shareholders of the parent company was RMB 126,077,038.00, down from RMB 156,982,496.60, indicating a decline of about 19.7% year-over-year[9]. - Basic and diluted earnings per share for the six months ended June 30, 2023, were both RMB 0.33, compared to RMB 0.41 for the same period in 2022, reflecting a decrease of approximately 19.5%[10]. - The total comprehensive income attributable to shareholders of the parent company for the period was RMB 125,985,161.70, compared to RMB 156,982,496.60 in the previous year, marking a decline of around 19.7%[10]. - The company's main operating revenue for the first half of 2023 was RMB 540,241,563.44, compared to RMB 569,856,989.16 in the same period of 2022, indicating a decline of about 5.23%[24]. - The company's gross profit for the same period was approximately RMB 391.41 million, down 8.08% from RMB 425.80 million year-on-year, resulting in a gross margin of 72.39%, a decline of 2.13%[46]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 3,472,457,994.37, up from RMB 3,409,766,690.91 at the end of 2022[2]. - The total liabilities increased to RMB 745,055,516.20 as of June 30, 2023, compared to RMB 690,066,911.19 at the end of 2022[4]. - The company’s cash and cash equivalents totaled RMB 855,124,538.98 as of June 30, 2023, compared to RMB 957,193,661.02 at the end of 2022[2]. - The company’s accounts receivable increased to RMB 578,927,472.41 as of June 30, 2023, from RMB 488,746,494.02 at the end of 2022, reflecting a growth of approximately 18.5%[2]. - The total accounts payable as of June 30, 2023, was RMB 232,142,733.03, slightly down from RMB 237,786,563.39 at the end of 2022, indicating a decrease of about 2.7%[19]. - The company's current assets decreased from approximately RMB 957.19 million as of December 31, 2022, to RMB 855.12 million as of June 30, 2023[53]. - The company's net current assets decreased from approximately RMB 2,183.28 million as of December 31, 2022, to approximately RMB 2,171.08 million as of June 30, 2023, primarily due to an increase in current liabilities during the period[60]. Research and Development - Research and development expenses for the first half of 2023 were RMB 74,572,384.70, slightly higher than RMB 72,289,835.94 in the same period of 2022[6]. - The company has significantly increased its R&D investment, resulting in a large number of domestic and international registrations obtained in the first half of 2023[34]. - The company plans to establish a product R&D center at the Daxing New Production Base, which will include departments for joint prosthetics, spine products, orthopedic trauma products, and a biomechanics center[68]. - The company is focused on developing standard joint prosthetic products, advanced customized joint prosthetic products, orthopedic robots, spine products, trauma, sports medicine products, PRP products, and oral products[68]. Market and Growth Strategy - The company plans to continue its market expansion and product development strategies to enhance future growth prospects[11]. - The orthopedic medical device market in China is experiencing growth due to factors such as an aging population and increased healthcare spending[32]. - The company aims to enhance its market share by improving its product portfolio and expanding its marketing network[33]. - The company is actively expanding its product line to meet diverse market and clinical needs, enhancing its overall competitiveness[34]. - The company aims to achieve a targeted annual growth rate of 5% in the upcoming fiscal year[63]. Compliance and Governance - The financial statements were prepared based on the going concern assumption, adhering to the applicable disclosure requirements under Hong Kong company regulations[12]. - The company has adopted new and revised Chinese accounting standards effective as of June 30, 2023, to ensure compliance with regulatory requirements[12]. - The audit committee has reviewed the consolidated financial statements for the six months ended June 30, 2023, including the accounting principles applied[74]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[72]. Employee and Talent Management - As of June 30, 2023, the company employed approximately 1,379 employees, with total salary and related costs amounting to approximately RMB 135.89 million[70]. - The company continues to implement its existing talent development policies and has established an effective incentive mechanism to motivate employees[69]. International Expansion - The company obtained registration certificates for 19 countries, including Ukraine, South Korea, and Mexico, enhancing its international sales capabilities[41]. - The company has completed several clinical research projects and has received approvals for various innovative medical materials and products[36]. - The company is committed to maintaining its leading position in the domestic market while strengthening its international business development and market promotion efforts[66].

北京市春立正达医疗器械股份有限公司 关于召开 2023 年半年度业绩说明会的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或者重大 遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 投资者可于 2023 年 08 月 24 日(星期四) 至 08 月 30 日(星期三)16:00 前登录上证 路演中心网站首页点击"提问预征集"栏目或通过公司邮箱 ir@clzd.com 进行提问。公 司将在说明会上对投资者普遍关注的问题进行回答。 北京市春立正达医疗器械股份有限公司（以下简称"公司"）将于 2023 年 8 月 31 日发布公司 2023 年半年度报告，为便于广大投资者更全面深入地了解公司 2023 年半年 度经营成果、财务状况，公司计划于 2023 年 08 月 31 日上午 10:00-11:00 举行 2023 年 半年度业绩说明会，就投资者关心的问题进行交流。 证券代码：688236 证券简称：春立医疗 公告编号：2023-032 财务总监：李玉梅女士 （如有特殊情况，参会人员可能进行调整） 四、 投资者参加方式 一、 说明会类型 本次投资者说明会以网络互 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 表 明 概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 北京市春立正達醫療器械股份有限公司 Beijing Chunlizhengda Medical Instruments Co., Ltd.* 北京市春立正達醫療器械股份有限公司（「本公司」）之董事會（「董事會」）謹此宣 佈將於2023年8月30日（星 期 三）舉 行 董 事 會 會 議，藉 以（其 中 包 括）批准本公司及 其附屬公司截至2023年6月30日止六個月之中期業績公佈及考慮派付中期股息 （如 有）。 代表董事會 北京市春立正達醫療器械股份有限公司 史文玲 董事長 中 國，北 京，2023年8月18日 截 至 本 公 告 日 期，執 行 董 事 為 史 春 寶 先 生、岳 術 俊 女 士、史 文 玲 女 士 及 解 鳳 寶 先 生；非 執 行 董 事 為 王 鑫 先 生；及 獨 立 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 表 明 概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 北京市春立正達醫療器械股份有限公司 Beijing Chunlizhengda Medical Instruments Co., Ltd.* （於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司） （股 份 代 號：1858） 有關截至2022年12月31日止年度的年報的 補充公告 根據上市規則附錄十六第32(4A)段，本 公 司 謹 此 提 供 有 關 其 價 值 佔 本 集 團 於 2022年12月31日總資產5%或以上的重大投資及其按公允價值計量且其變動計 入當期損益的金融資產（包 括 本 集 團 認 購 北 京 銀 行 及 中 國 建 設 銀 行 提 供 的 若 干 結構性存款產品（「結構性存款產品」））的 進 一 步 資 料。 繼本公司日期為2022年1月26 ...

Investment Strategy - Beijing Chunlizhengda Medical Instruments Co., Ltd. reported significant investments in structured deposit products, with a total investment amount of RMB 67,000,000 across various banks[2]. - The company has maintained a focus on utilizing idle fundraising for investment in structured deposits, enhancing liquidity management[3]. - The company continues to explore further investment opportunities in structured financial products to optimize asset allocation[4]. - The structured deposits are part of the company's broader financial strategy to ensure capital preservation and yield enhancement[4]. - The investment in structured deposit products is aimed at effectively utilizing temporarily idle funds raised from the public offering of A-shares, enhancing the overall capital return of the group[5]. Financial Performance - The annualized return for the structured deposits from Beijing Bank ranged from 1.35% to 1.6%, with actual returns reported at 3.2% for some products[2][3]. - The actual returns from structured deposits were reported as RMB 126.25 million, RMB 236.71 million, and RMB 196.03 million, reflecting positive investment outcomes[2][3]. - The company recorded investment income from structured deposit products of approximately RMB 6,748,000 and fair value changes of structured deposit products amounting to approximately RMB 9,491,000 as of December 31, 2022[5]. - As of December 31, 2022, the balance of structured deposit products was RMB 765,000,000, with a fair value of approximately RMB 767,728,000, accounting for about 23% of the company's total assets[5]. Cash Management - The company fully redeemed all structured deposits by the end of the reporting period, indicating effective cash management strategies[2][3]. - The company's core objectives include ensuring capital security and maintaining liquidity[5]. Banking Relationships - The company has established relationships with reputable banks, ensuring reliable investment channels for its financial products[4]. Monitoring and Future Objectives - The financial performance and investment strategies will be closely monitored to align with future growth objectives[4]. - The supplementary information provided does not affect other data disclosed in the 2022 annual report[5].

Financial Performance - Total revenue for Q1 2023 was ¥246,355,024.32, a decrease of 4.3% compared to ¥257,113,202.13 in Q1 2022[7] - The company's operating revenue for Q1 2023 was CNY 246,355,024.32, representing a decrease of 4.18% compared to the same period last year[35] - The net profit attributable to shareholders of the listed company was CNY 55,861,404.05, down 24.53% year-on-year[35] - The net profit for Q1 2023 was CNY 55,861,404.05, a decrease of 24.5% compared to CNY 74,021,366.53 in Q1 2022[44] - Operating profit for Q1 2023 was CNY 62,341,671.90, down 26.0% from CNY 84,279,091.21 in the same period last year[44] - Total profit for Q1 2023 reached CNY 62,225,078.79, a decline of 25.0% compared to CNY 82,950,225.44 in Q1 2022[44] Operating Costs and Expenses - Total operating costs increased to ¥183,535,965.29 in Q1 2023, up 7.1% from ¥170,342,269.72 in Q1 2022[7] - Research and development expenses for Q1 2023 were ¥33,270,315.66, slightly up from ¥33,114,231.75 in Q1 2022[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 33.36% to CNY 49,607,213.75, primarily due to the impact of "volume-based procurement" and increased R&D investments[38] - The net cash flow from operating activities was negative at CNY -120,197,574.28, indicating increased cash outflows primarily due to higher R&D expenditures and raw material costs[35] Cash and Liquidity - Cash and cash equivalents at the end of Q1 2023 were ¥838,344,639.97, down from ¥1,025,826,965.44 at the end of Q1 2022[10] - The company reported a net decrease in cash and cash equivalents of ¥118,849,021.05 in Q1 2023[10] - Cash inflow from operating activities was CNY 212,802,558.95, slightly up from CNY 209,155,705.21 in Q1 2022, representing a growth of 1.3%[45] - Total cash flow from operating, investing, and financing activities indicates a challenging liquidity position for the company[56] - The company is focusing on improving cash flow management and reducing operational losses in future quarters[56] Shareholder Information - The number of common shareholders at the end of the reporting period was 5,766[1] - The largest shareholder, Shi Chunbao, holds 29.88% of shares, totaling 114,840,685 shares[2] - The total equity attributable to shareholders remained stable at ¥384,280,000.00[6] - The total equity attributable to shareholders of the listed company increased by 2.05% to CNY 2,775,561,183.72 compared to the end of the previous year[36] - The total equity attributable to shareholders of the parent company increased to CNY 2,775,561,183.72 from CNY 2,719,699,779.72, reflecting a growth of 2.1%[53] Assets and Liabilities - Total liabilities decreased to ¥615,416,974.31 in Q1 2023 from ¥690,066,911.19 in Q1 2022[6] - The company's total assets as of March 31, 2023, were CNY 3,391,412,670.08, a slight decrease of 0.54% from the end of the previous year[36] - The company's total liabilities decreased slightly, reflecting a stable financial position despite the challenges faced in the market[36] - The total liabilities and equity amounted to CNY 3,391,412,670.08, a slight decrease from CNY 3,409,766,690.91 in the previous year[53] Strategic Focus - The company emphasized its commitment to new product and technology development as part of its long-term strategic planning[38] - The management team is committed to strategic investments to enhance long-term growth despite current cash flow challenges[56]

Financial Performance - The company's operating revenue for Q1 2023 was RMB 246,355,024.32, representing a decrease of 4.18% compared to the same period last year[5] - Net profit attributable to shareholders for Q1 2023 was RMB 55,861,404.05, down 24.53% year-on-year[5] - The net profit after deducting non-recurring gains and losses was RMB 49,607,213.75, reflecting a decline of 33.36% compared to the previous year[5] - Basic and diluted earnings per share for Q1 2023 were both RMB 0.15, a decrease of 21.05% year-on-year[7] - The weighted average return on equity was 2.03%, down by 0.92 percentage points compared to the previous year[7] - The report indicates that the company is committed to enhancing its market position through strategic investments in R&D and product development[10] - The company reported a net profit margin decline due to increased operating costs, impacting overall profitability[16] - The net profit for Q1 2023 was CNY 55,861,404.05, a decrease of 24.5% compared to CNY 74,021,366.53 in Q1 2022[18] - Operating profit for Q1 2023 was CNY 62,341,671.90, down 26.0% from CNY 84,279,091.21 in the same period last year[18] Cash Flow - The net cash flow from operating activities was negative RMB 120,197,574.28, indicating a significant cash outflow[7] - The net cash flow from operating activities was not applicable, primarily due to increased R&D expenditures and higher cash outflows for raw material purchases influenced by "volume-based procurement"[10] - Cash flow from operating activities in Q1 2023 showed a net outflow of CNY 120,197,574.28, compared to a net outflow of CNY 20,120,816.00 in Q1 2022[21] - Cash inflow from investment activities in Q1 2023 was CNY 771,181,481.64, compared to CNY 904,215.33 in Q1 2022[21] - Cash outflow for the purchase of fixed assets and intangible assets in Q1 2023 was CNY 1,025,917.03, significantly lower than CNY 21,232,408.43 in Q1 2022[21] - The net increase in cash and cash equivalents was -$118,849,021.05, a notable decline from -$710,667,029.94 in the previous period[22] - The ending balance of cash and cash equivalents stood at $838,344,639.97, down from $1,025,826,965.44 in the previous period[22] Assets and Liabilities - Total assets at the end of Q1 2023 were RMB 3,391,412,670.08, a slight decrease of 0.54% from the end of the previous year[7] - Current assets totaled CNY 2,745,321,590.09, a slight decrease from CNY 2,779,088,982.86 in the previous year[14] - Non-current assets increased to CNY 646,091,079.99 from CNY 630,677,708.05 year-over-year[14] - Total liabilities decreased to CNY 615,416,974.31 from CNY 690,066,911.19 in the previous year[15] - Shareholders' equity rose to CNY 2,775,995,695.77, up from CNY 2,719,699,779.72 year-over-year[15] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 5,766, with the top ten shareholders holding significant stakes[11] - The largest shareholder, Shi Chunbao, held 29.88% of the shares, while the second-largest shareholder, Yue Shujun, held 24.84%[11] - The top ten shareholders include various institutional and individual investors, indicating a diverse ownership structure[12] - The company has not reported any significant changes in the relationships or agreements among the top shareholders[12] - The company has not disclosed any significant pledges or freezes on shares held by the top shareholders[12] Research and Development - Research and development expenses totaled RMB 33,270,315.66, accounting for 13.51% of operating revenue, an increase of 0.63 percentage points year-on-year[7] - The net profit attributable to shareholders, excluding non-recurring gains and losses, decreased by 33.36% due to the impact of "volume-based procurement" leading to a decline in terminal selling prices and increased R&D investments[10] - The company is focusing on long-term strategic planning, emphasizing the development of new products, technologies, and processes to drive innovation and product iteration[10] - The company has increased its R&D investment to support technological innovation and product upgrades[10] - Research and development expenses for Q1 2023 were CNY 33,270,315.66, slightly up from CNY 33,114,231.75 in Q1 2022[18] Operating Costs - Total operating costs increased to CNY 183,535,965.29, up 7.8% from CNY 170,342,269.72 in the previous year[16] - Operating costs included CNY 77,916,277.20 in operating expenses, which rose significantly from CNY 50,214,509.64 in Q1 2022[16] - The company recorded a decrease in sales expenses to CNY 64,965,051.80 in Q1 2023 from CNY 79,897,136.99 in Q1 2022, a reduction of 18.7%[18] Foreign Exchange and Accounting - The company recorded a foreign exchange gain of CNY 2,022,556.16 in Q1 2023, compared to a gain of CNY 1,695,561.64 in Q1 2022, indicating an increase of 19.2%[18] - The impact of exchange rate changes on cash and cash equivalents was -$218,020.84, reflecting currency fluctuations during the period[22] - The company did not apply new accounting standards or interpretations for the first quarter of 2023[23]

Financial Performance - In 2022, the company achieved operating revenue of RMB 1,201.60 million, representing a year-on-year growth of 8.43%[8]. - The net profit attributable to shareholders of the listed company was RMB 307.72 million, a decrease of 4.54% compared to the previous year[8]. - Basic earnings per share were RMB 0.80, reflecting a decline of 13.98% year-on-year[8]. - The company's operating revenue increased by 8.43% from approximately RMB 1,108.14 million in 2021 to approximately RMB 1,201.61 million in 2022, driven by growth in joint prosthesis sales and continuous sales increases in spinal and sports medicine products[17]. - Revenue from joint prosthesis products was approximately RMB 1,046.39 million, a slight increase of 1.05% from RMB 1,035.55 million in 2021; spinal products revenue surged by 70.14% to RMB 115.87 million; sports medicine products revenue skyrocketed by 927.01% to RMB 36.77 million[18]. - Gross profit rose by 6.90% from approximately RMB 854.54 million in 2021 to approximately RMB 913.53 million in 2022, while the gross profit margin decreased from 77.11% to 76.03% due to price reductions from the implementation of centralized procurement policies[19]. - The company's net profit decreased by 4.54% from approximately RMB 322.36 million in 2021 to approximately RMB 307.72 million in 2022, primarily due to price declines in products affected by centralized procurement policies[26]. - The total comprehensive income for 2022 was RMB 298,778,119.15, a decrease of approximately 7.5% from RMB 322,989,532.24 in the previous year[184]. Assets and Liabilities - The total assets of the company increased to RMB 3,409.77 million, up 13.67% from the end of the previous year[8]. - The company's current assets decreased by 44.88% from approximately RMB 1,736.49 million in 2021 to approximately RMB 957.19 million in 2022, mainly due to investments in financial products[26]. - The company's total current assets increased by 8.72% from approximately RMB 2,008.14 million in 2021 to approximately RMB 2,183.28 million in 2022[33]. - As of December 31, 2022, the company's accounts receivable balance was CNY 540.70 million, with a provision for bad debts amounting to CNY 51.95 million[166]. - The company's inventory balance as of December 31, 2022, was CNY 280.77 million, with a provision for inventory impairment of CNY 20.98 million[168]. - As of December 31, 2022, total liabilities amounted to RMB 690,066,911.19, an increase of 30.1% from RMB 530,579,974.97 in 2021[176]. - Current liabilities totaled RMB 595,804,539.93, up 35.5% from RMB 439,618,888.24 in the previous year[176]. Research and Development - The company has increased R&D investment, achieving significant results in laboratory construction and product development, with a total of 21 testing qualifications obtained by December 31, 2022[10]. - Research and development expenses increased by 54.84% from approximately RMB 104.84 million in 2021 to approximately RMB 162.34 million in 2022, accounting for 13.51% of total revenue, reflecting the company's focus on long-term strategic planning and innovation[23]. - Two products under the national key R&D project have entered the registration review stage, indicating progress in innovative product development[10]. - The company is committed to becoming a first-class international orthopedic innovation enterprise by enhancing R&D capabilities and brand influence[14]. Market Expansion and Strategy - The company successfully registered its products in eight countries, including Ukraine, South Korea, and Mexico, to expand its international market presence[9]. - The company accelerated the development of new products and expanded its market share amid ongoing pandemic challenges[7]. - The orthopedic implant market in China is expected to grow due to favorable factors such as an aging population and increased healthcare spending[16]. - The company aims to maintain its leading position in the domestic joint prosthesis market and continuously improve market share[12]. - The company plans to establish a professional sales team to enhance the development of various product lines, including joints, spine, sports medicine, and dental products[13]. - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by 2025[56]. Corporate Governance and Compliance - The company has complied with all applicable principles and code provisions of the corporate governance code as of December 31, 2022[51]. - The board of directors consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors[100]. - The company is committed to maintaining high corporate governance standards and has complied with all applicable principles and provisions[99]. - The independent non-executive directors possess extensive experience in corporate governance, financial management, and medical engineering[102]. - The company has established a salary committee to review the compensation policy for all directors and senior management, considering operational performance and market practices[83]. Environmental and Social Responsibility - The company is committed to environmental sustainability by promoting energy conservation and encouraging the reuse of office supplies[86]. - The company has established a comprehensive environmental management system to mitigate its impact on natural resources[140]. - The company has committed to sustainable development and actively responds to national carbon neutrality policies[144]. - The company produced 6.905 tons of titanium waste in 2022, with a waste generation rate of 0.09 kg per RMB 10,000 of output[142]. - The total greenhouse gas emissions in 2022 included 19.37 tons of direct CO2 emissions and 3,216.9 tons of indirect CO2 emissions, with a CO2 emission rate of 0.0222 tons per RMB 10,000 of product[142]. Employee and Community Engagement - As of December 31, 2022, the company employed approximately 1,303 staff, with total salary and related costs amounting to RMB 193.41 million[43]. - The company has established multiple promotion pathways, including technical and management routes, to support employee development[151]. - The company has implemented a health check policy for new employees and provides annual health check cards for existing employees[148]. - The company continues to support the "Spring Sunshine Project," providing free internal fixation materials for joint replacement surgeries to impoverished patients, benefiting over 80 hospitals nationwide[158]. - The company has been actively involved in community investment, collaborating with various charitable organizations and conducting donation activities[158].

Financial Performance - The net profit attributable to the parent company for 2022 was RMB 307.72 million, with the parent company achieving a net profit of RMB 298.78 million[5]. - The proposed cash dividend distribution is RMB 3.13 per 10 shares, totaling RMB 120.06 million, which accounts for 39.02% of the net profit attributable to shareholders[6]. - The company reported a significant increase in revenue, reaching RMB 1.2 billion in 2022, representing a growth of 15% compared to the previous year[22]. - The company achieved operating revenue of ¥1,201,604,254.24 in 2022, representing a year-on-year growth of 8.43%[25]. - Net profit attributable to shareholders decreased by 4.54% to ¥307,719,145.65, while the net profit after deducting non-recurring gains and losses fell by 10.88% to ¥274,208,661.74[25]. - The net cash flow from operating activities was ¥41,007,526.40, a significant decline of 75.11% compared to the previous year[25]. - Basic and diluted earnings per share were both ¥0.80, reflecting a decrease of 13.98% year-on-year[24]. - The gross margin improved to 45% in 2022, up from 42% in 2021, reflecting better cost management and pricing strategies[22]. Research and Development - The company has invested RMB 50 million in R&D for innovative medical technologies, aiming to improve product offerings and patient outcomes[22]. - The company's R&D investment as a percentage of operating revenue increased to 13.51%, up by 4.05 percentage points from the previous year[24]. - The company reported a total R&D investment of approximately ¥162.34 million in 2022, a 54.84% increase from the previous year, representing 13.51% of total revenue[114]. - The number of R&D personnel increased to 399, representing 30.62% of the total workforce, up from 27.39% in the previous year[122]. - The average salary of R&D personnel rose to 12.41 million RMB, compared to 12.28 million RMB in the previous year[122]. - The company is focusing on R&D of new materials such as porous tantalum, magnesium alloy, and PEEK to enhance its product offerings[34]. - The company is actively pursuing innovation in emerging technologies, with ongoing research and development efforts in various new medical materials[81]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 25% market share in the region by 2025[22]. - A strategic acquisition of a local competitor is in progress, which is anticipated to increase production capacity by 30%[22]. - The company plans to enhance its distribution network, aiming for a 15% increase in distribution points by the end of 2023[22]. - The company is actively expanding into overseas markets, which may be affected by international political and economic changes[134]. - The company is expanding its product offerings in sports medicine and dental fields, with new registrations for various medical devices, indicating a comprehensive approach to market expansion[110]. Product Development - New product development includes the launch of a next-generation orthopedic implant, expected to enhance market competitiveness and drive sales growth[22]. - The company is developing customized orthopedic implants, with several products in various stages of regulatory approval, including artificial ligaments and personalized hip and knee implants[118]. - The company is developing advanced customized joint prosthetics using China's national skeletal database and 3D reconstruction technology, which has a broader application range compared to existing customized products[79]. - The company has made significant progress in the development of 3D printing technologies for orthopedic implants, enhancing product quality and production efficiency[126]. - The company is in the design phase for a series of new biomedical materials, indicating a strong commitment to expanding its product offerings in the medical device market[81]. Corporate Governance - The board of directors consists of 8 members, including 3 independent non-executive directors, and held 15 meetings during the reporting period[184]. - The supervisory board is composed of 3 members, with at least one-third being employee representatives, and held 6 meetings during the reporting period[185]. - The company maintains independence in finance, personnel, assets, business, and organization, ensuring a complete business system and autonomous operational capability[186]. - The company has established a robust internal information disclosure management system, adhering to principles of truthfulness, accuracy, completeness, timeliness, and fairness[187]. - The company held its first A-share and H-share class shareholder meetings in 2022, approving various resolutions including the appointment of financial auditing institutions and the remuneration of directors[190]. Challenges and Risks - The company has outlined potential risks in its operations, which are detailed in the report[4]. - The company faced challenges from the "volume-based procurement" policy, leading to a decrease in product selling prices[25]. - The implementation of national "volume-based procurement" has led to a decrease in product prices, significantly squeezing profit margins[130]. - The company faced risks related to reliance on a single overseas supplier for core materials, which could impact production if supply is disrupted[129]. Financial Health - The company's cash and cash equivalents at the end of the reporting period amounted to ¥957.19 million, representing 28.07% of total assets, a decrease of 44.88% compared to the previous period[158]. - Accounts receivable increased by 22.13% to ¥488.75 million, accounting for 14.33% of total assets, primarily due to an expansion in sales scale[158]. - Inventory rose by 62.70% to ¥259.79 million, representing 7.62% of total assets, as the company increased product stock in response to market demand[158]. - The company’s accounts payable rose by 66.97% to ¥237.79 million, indicating an increase in business payables[158]. - The company’s tax payable increased by 65.78% to ¥53.55 million, attributed to the growth in business operations[158].