Financial Performance - The company's operating revenue for 2018 was ¥95,480,022.29, a decrease of 48.11% compared to ¥183,993,714.97 in 2017[23] - The net profit attributable to shareholders for 2018 was -¥187,759,869.23, representing a decline of 1,226.01% from ¥16,674,851.14 in 2017[23] - The net cash flow from operating activities was -¥23,181,185.84 in 2018, compared to -¥241,511,540.58 in 2017[23] - The total assets at the end of 2018 were ¥1,280,351,320.20, down 11.61% from ¥1,448,558,143.15 at the end of 2017[23] - The net assets attributable to shareholders decreased by 13.66% to ¥1,213,191,509.69 at the end of 2018 from ¥1,405,060,190.52 at the end of 2017[23] - The basic earnings per share for 2018 was -¥0.2089, a significant drop from ¥0.0186 in 2017[23] - The weighted average return on equity was -14.33% in 2018, down from 1.17% in 2017[23] - The company reported a net profit attributable to shareholders excluding non-recurring gains and losses of -¥183,693,515.19 in 2018[23] - The company faced significant operational challenges leading to a substantial decline in both revenue and profit margins[23] Cash Flow and Assets - The net cash flow from operating activities for Q2 was positive at ¥77,617,651.21, contrasting with negative cash flows in other quarters[28] - Total assets included cash and cash equivalents of 671.54 million, representing 52.45% of total assets, an increase of 8.64% from the previous year[97] - Accounts receivable increased to 7.56 million, accounting for 0.59% of total assets, up 0.40% year-on-year due to revenue recognition from medical device regulatory services[97] - Inventory decreased by 42.59% to 70.34 thousand, attributed to sales of inventory products[97] - The fair value of financial assets decreased by 7.53 million, resulting in a year-end value of 67.96 million[98] Revenue Sources and Growth - The comprehensive management service for medical insurance funds generated revenue of CNY 38,089,744.35, representing a year-on-year growth of 48.36%[67] - The revenue from drug and medical device regulatory services was CNY 53,243,787.41, with a year-on-year increase of 14.72%[67] - The total revenue from the medical insurance fund management service business reached ¥122,102,756.27, representing a year-on-year increase of 86.52%[83] - The revenue from the Beijing region was CNY 53,380,452.52, showing a year-on-year increase of 19.41%[74] Research and Development - The company is investing 200 million RMB in R&D for new technologies aimed at enhancing service delivery[160] - The number of R&D personnel increased by 26.45% to 827, with their proportion in the workforce rising to 67.62%[90] - The company has successfully developed over 20 products, including a prescription review engine, all of which have obtained software copyright registration certificates[61] Strategic Initiatives - The company is focused on building a health data service platform, integrating data from various health authorities to enhance service delivery[38] - The intelligent audit service, a core business, aims to control unreasonable medical expenses and is recognized for its advanced technology[39] - The company aims to create a comprehensive health insurance service system, aligning with the national strategy for equitable health coverage[36] - The company has signed a strategic cooperation agreement with China People's Health Insurance Co., Ltd. to enhance collaboration in various insurance services[67] Equity and Shareholder Relations - The company does not plan to distribute cash dividends or issue bonus shares for the year[7] - The available profit for distribution to shareholders at the end of 2018 was ¥409,279,051.56, while the parent company reported a net profit of ¥16,034,842.67, with undistributed profits of -¥107,055,268.38[126] - The company did not declare any cash dividends for the years 2016, 2017, and 2018, maintaining a cash dividend ratio of 0.00% for each of these years[127] - The company has committed to ensuring the protection of minority shareholders' rights and providing them with opportunities to express their opinions[126] Compliance and Governance - The company has not faced any administrative or criminal penalties in the last three years, ensuring compliance with legal and regulatory requirements[150] - The company guarantees the authenticity, accuracy, and completeness of the information provided during the major asset sale, ensuring no false records or misleading statements exist[138] - The company has committed to reducing and standardizing related party transactions following the completion of the asset sale, ensuring fair pricing and full disclosure[143] Future Outlook - The company provided a forward guidance of 20% revenue growth for the next fiscal year, projecting revenues to reach approximately 1.44 billion RMB[158] - The company is exploring potential acquisitions to enhance its service portfolio, targeting a 10% increase in service offerings by the end of the year[156] - The company aims to enhance customer engagement through digital platforms, expecting a 40% increase in online interactions[159]

Financial Performance - Total assets decreased by 8.48% to CNY 1,325,702,754.52 compared to the end of the previous year[8] - Net assets attributable to shareholders decreased by 7.05% to CNY 1,305,990,971.86 compared to the end of the previous year[8] - Operating revenue for the current period was CNY 24,271,089.64, a decrease of 21.05% year-on-year[8] - Net profit attributable to shareholders was a loss of CNY 24,999,438.60, an increase in loss of 66.43% year-on-year[8] - Net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of CNY 29,204,659.51, an increase in loss of 58.47% year-on-year[8] - Cash flow from operating activities showed a net outflow of CNY 13,873,066.08, a decrease of 96.61% year-on-year[8] - Basic and diluted earnings per share were both CNY -0.0278, reflecting a 66.43% increase in loss year-on-year[8] - Weighted average return on net assets was -1.79%, a decrease of 3.39% year-on-year[8] Shareholder Information - The total number of shareholders at the end of the reporting period was 51,401[12] Accounts Receivable and Prepayments - Accounts receivable increased by 53.93% to ¥4,319,153.40 due to the recognition of income from medical insurance fund management services and food and drug administration e-government services[16] - Prepayments decreased by 76.37% to ¥1,145,770.23 primarily due to reduced advance rent payments[16] Revenue Changes - Operating revenue fell by 58.42% to ¥46,624,406.01, mainly due to the previous period's revenue including significant contributions from Guangdong Haihong and the trading center's e-commerce income[16] Cash Flow and Financial Expenses - Cash received from tax refunds increased by 19.19% to ¥688,728,629.96, attributed to the immediate refund of value-added tax[17] - Cash paid for purchasing goods and services decreased by 77.18% to ¥10,221,448.84, reflecting reduced purchases in the medical e-commerce and trading business[17] - Investment cash payments surged by 776.11% to ¥4,496,019.00, primarily due to payments for minority equity acquisitions[17] - Cash flow from operating activities decreased by 66.47% to ¥37,937,013.49, largely due to the previous period's significant e-commerce revenue[17] - Financial expenses showed a significant decrease of 367.39%, resulting in a net income of -¥14,934,013.36, driven by interest income and exchange rate fluctuations[16] Fair Value Changes - The company reported a 148.74% increase in fair value changes, reaching ¥6,503,645.67, due to fluctuations in the market value of trading financial assets[16] Fundraising and Asset Restructuring Plans - The company plans to optimize and adjust the fundraising projects related to the non-public offering of shares due to changes in actual control[20] - The company is currently planning a major asset restructuring involving the acquisition of four companies, including Shanghai Jingyi Technology Co., Ltd. and Shanghai Quyi Network Technology Co., Ltd.[22] - The controlling shareholder, Zhonghai Heng, plans to increase its stake in the company by investing no less than 100 million RMB over the next 12 months, with a maximum purchase price of 35.44 RMB per share[22] - As of August 7, 2018, Zhonghai Heng has acquired 4,333,200 shares, representing 0.48% of the total share capital, with a total investment of approximately 100 million RMB[22] - The company has submitted an application to the China Securities Regulatory Commission to suspend the review of its non-public offering due to changes in its actual controller[21] - The board of directors has approved the extension of the validity period for the non-public offering resolution and authorization, which is pending approval from the upcoming extraordinary general meeting[21] - The company is actively working on the restructuring process, with all parties involved progressing on the transaction plan[22] - The company has received feedback from the China Securities Regulatory Commission regarding its administrative licensing application for the non-public offering[21] - The company is optimizing the investment projects for the funds raised from the non-public offering due to changes in its actual controller[21] Major Asset Sale Commitments - The company plans to transfer a total of 55% equity in Guangdong Haihong Pharmaceutical E-commerce Co., Ltd. and 100% equity in Hainan Weihong Pharmaceutical E-commerce Co., Ltd. to Wang Zhongyong as part of a major asset sale[24] - The company guarantees the authenticity, accuracy, and completeness of the information provided during the major asset sale process, ensuring no false records or misleading statements exist[25] - The company has committed to timely disclose relevant information regarding the major asset sale in accordance with applicable laws and regulations[25] - The major asset sale is expected to enhance the operational efficiency and shareholder value of the company[27] - The company commits to ensuring the authenticity, accuracy, and completeness of the information provided during the asset sale process[27] - The company emphasizes adherence to legal and regulatory requirements during the asset sale, ensuring timely disclosure of relevant information[27] - The company has established a commitment to fair and transparent pricing in related transactions, following market principles[27] - The company has confirmed that there are no violations of commitments during the asset sale process[27] - The asset sale is part of a strategic move to optimize the company's portfolio and focus on core business areas[27] Compliance and Legal Commitments - The company has a long-term commitment to compliance with relevant laws and regulations regarding related party transactions[27] - The company assures that all signatures and documents related to the asset sale are authentic and consistent with original documents[26] - The company has committed to avoiding any substantial competition with Haihong Holdings' main business, both domestically and internationally[29] - The commitment to avoid competition is effective from the date of signing and is legally binding[29] - The company ensures that all transactions will adhere to public, fair, and just market principles, ensuring fair pricing[28] - The company has not engaged in any related transactions that violate the commitments made[28] - The company has confirmed that there are no pending or potential lawsuits affecting the shares of Guangdong Haihong and the trading center[32] - The company has stated that all commitments made in the letters are effective from the date of signing[32] - The company has ensured that there are no administrative or judicial procedures that could restrict the transfer of its equity stakes[32] - The company has committed to ensuring that no funds or assets are occupied by actual controllers or related parties during the major asset sale process[38] - The company has made a commitment to implement measures to ensure that the immediate return measures are effectively fulfilled, as per the regulations of the China Securities Regulatory Commission[39] - The company has stated that it will not engage in any actions that harm the interests of the company or its shareholders during the stock incentive plan implementation[39] - The company has confirmed that it will not reduce its holdings of the company's stock during the stock purchase period and statutory period[39] Investment and Securities - The total securities investment amounted to 171,517 million, with a fair value of 72,152 million[42] - The company reported a net loss of 1,000.5 million for a specific investment, indicating a significant decline in value[41] - The fair value of the investment in China National Petroleum Corporation was recorded at 51,023 million, with a change in fair value of 8,516.2 million[41] - The company did not engage in any entrusted financial management during the reporting period[43] - There were no derivative investments reported during the period[44] Regulatory Compliance - The company has not experienced any non-compliance issues regarding external guarantees during the reporting period[46] - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[47] - The company conducted multiple communications regarding business progress and asset restructuring during the reporting period[45]

Financial Performance - The company's operating revenue for the first half of 2018 was ¥22,353,316.37, a decrease of 72.53% compared to ¥81,386,088.54 in the same period last year[16]. - The net profit attributable to shareholders was -¥88,273,418.22, representing a decline of 10.36% from -¥79,989,820.85 year-on-year[16]. - The company reported a basic earnings per share of -¥0.0982, a decline of 10.36% from -¥0.0890 in the same period last year[16]. - The company's main business revenue for the reporting period was ¥22,353,316.37, a decrease of 72.53% compared to the previous year[48]. - The company reported a significant increase in cash received from other operating activities, amounting to ¥133,370,104.13, which is a 430.47% increase compared to ¥25,142,018.83 last year[50]. - The company’s R&D investment decreased by 65.41% year-on-year, amounting to ¥22,925,432.05, due to fewer projects compared to the previous year[48]. - The company reported a net cash inflow from the disposal of fixed assets of ¥75,637,272.68, a dramatic increase of 324,342.19% compared to ¥23,313.02 last year[50]. - The company reported a net loss for the current period of CNY 89,901,244.10, slightly improved from a net loss of CNY 91,288,036.03 in the previous period[147]. - The total comprehensive loss for the current period is CNY 86,189,402.94, compared to a loss of CNY 103,183,922.84 in the previous period[147]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,344,158,461.95, down 7.21% from ¥1,448,558,143.15 at the end of the previous year[16]. - The net assets attributable to shareholders decreased by 6.14% to ¥1,318,848,607.46 from ¥1,405,060,190.52 at the end of the previous year[16]. - Long-term equity investments decreased by 0.05% to 177.81 million yuan, while fixed assets decreased by 8.03% to 36.01 million yuan[30]. - The total liabilities decreased to CNY 39,083,660.17 from CNY 55,643,932.42, indicating a reduction of about 29.8%[138]. - The owner's equity totaled CNY 1,305,074,801.78, down from CNY 1,392,914,210.73, which is a decrease of approximately 6.3%[139]. - The total equity attributable to the parent company decreased to CNY 1,318,848,607.46 from CNY 1,405,060,190.52, a decline of approximately 6.1%[139]. Cash Flow - The net cash flow from operating activities improved to ¥14,964,890.71, a significant increase of 108.18% compared to -¥182,843,785.35 in the previous year[16]. - Total cash inflow from operating activities reached ¥150,386,370.75, up from ¥91,272,232.79 in the previous period, indicating a growth of approximately 64.8%[153]. - Cash outflow from operating activities decreased to ¥135,421,480.04 from ¥274,116,018.14, representing a reduction of about 50.7%[153]. - The net cash flow from investing activities improved to ¥57,526,395.77 from -¥49,956,216.89, marking a turnaround in investment performance[154]. - The cash and cash equivalents at the end of the period increased to ¥709,361,748.76 from ¥676,672,140.83, showing a growth of about 4.5%[154]. Business Operations - The company operates in five main areas: comprehensive management of medical insurance funds, health medical big data services, pharmaceutical benefit management services, third-party services for commercial health insurance, and medical artificial intelligence services[23]. - The company has developed a comprehensive management service platform for medical insurance funds, integrating existing services to provide a solution aimed at refined management of medical insurance funds[24]. - The DRGs payment settlement business has been successfully implemented in Jinhua and Liuzhou, recognized by all stakeholders, and is expected to be rolled out nationwide by 2020[26]. - The company has established a health big data service platform, connecting 40,000 medical institutions and 65,000 pharmacies, with an annual addition of nearly 800 million patient visits and 70 billion treatment data entries[27]. - The company has developed over 20 proprietary software products, including a smart management system for medical insurance funds, all of which have received copyright registration[38]. Strategic Initiatives - The company has launched the "1+1+N" health security service platform in Zhenjiang, which is expected to increase annual service fees from millions to tens of millions[46]. - The company is positioned to benefit from the new health insurance management policies, which are expected to enhance operational performance in the long term[44]. - The company is actively improving its employee structure and increasing talent recruitment to strengthen its R&D capabilities, which is crucial for sustainable development[46]. - The company plans to increase research and development investments to enhance platform optimization and maintain its competitive advantage in the health insurance service sector[66]. - The company is focusing on deepening and expanding its existing medical insurance fund management services, which will require substantial financial investment[67]. Corporate Governance and Compliance - The company does not plan to distribute cash dividends or issue bonus shares[5]. - The company has committed to providing accurate and complete information during its major asset sale process, ensuring compliance with relevant regulations[73]. - The company guarantees the authenticity, accuracy, and completeness of the information provided during the major asset sale, ensuring no false records or misleading statements exist[75]. - The company commits to timely disclose relevant information regarding the major asset sale in accordance with applicable laws and regulations[75]. - The company has undertaken measures to avoid any potential conflicts of interest or competition with Haihong Holdings post-transaction[77]. Shareholder Information - The total number of shares remains at 898,822,204, with 100% being unrestricted shares[117]. - The largest shareholder, Zhonghai Hengshi Industrial Development Co., Ltd., holds 25.74% of the shares, totaling 231,369,393 shares, with some shares pledged[120]. - The company reported a total of 10 major shareholders, with no strategic investors or general legal entities becoming part of the top 10 shareholders[120]. - The company has not reported any changes in limited sale shares during the reporting period[118]. - The company has not identified any related party relationships among the top 10 shareholders[120]. Legal and Regulatory Matters - There have been no criminal investigations or administrative penalties against the company or its executives in the last three years, ensuring a clean compliance record[79]. - The company has not conducted any major litigation or arbitration matters during the reporting period[90]. - The company has not experienced any penalties or rectification situations during the reporting period[90]. - The financial report for the half-year period has not been audited[88]. - The company has not engaged in any asset or equity acquisitions or sales during the reporting period[93].

Financial Performance - The company's revenue for Q1 2018 was ¥12,159,802.31, a decrease of 68.98% compared to ¥39,195,200.67 in the same period last year[8] - The net profit attributable to shareholders was -¥58,635,703.57, representing a decline of 50.98% from -¥38,837,727.86 year-over-year[8] - The net cash flow from operating activities was -¥62,652,760.50, which is an 18.74% increase in cash outflow compared to -¥52,764,034.33 in the previous year[8] - The basic earnings per share were -¥0.0652, down 50.98% from -¥0.0432 in the same quarter last year[8] - The weighted average return on net assets was -4.26%, a decline of 1.49% compared to -2.77% in the previous year[8] Assets and Shareholder Information - Total assets at the end of the reporting period were ¥1,361,621,219.10, a decrease of 6.00% from ¥1,448,558,143.15 at the end of the previous year[8] - The net assets attributable to shareholders decreased by 5.03% to ¥1,334,398,629.60 from ¥1,405,060,190.52 at the end of the last year[8] - The total number of ordinary shareholders at the end of the reporting period was 45,691[12] - The largest shareholder, China Ocean Holdings Development Co., Ltd., held 25.74% of the shares, totaling 231,369,393 shares[12] Receivables and Expenses - Accounts receivable increased by 58.55% to ¥4,448,895.32 due to revenue recognition during the reporting period[16] - Other receivables decreased by 31.20% to ¥158,047,576.31 primarily due to the recovery of equity transfer funds from Guangdong Haihong[16] - Development expenses decreased by 83.88% to ¥7,827,695.90 as the medical strategy system was transferred to intangible assets[16] - Financial expenses increased by 827.84% to ¥6,940,094.73 mainly due to increased exchange rate losses during the reporting period[16] - Cash received from other operating activities decreased by 66.21% to ¥4,494,310.22 due to the return of deposits from previous pharmaceutical and medical device bidding agency services[16] - Cash paid for taxes decreased by 48.19% to ¥1,889,396.59 due to a reduction in income tax payments[16] - Cash paid for investment was ¥4,496,013.00, reflecting the acquisition of minority equity interests during the reporting period[16] Capital Raising and Regulatory Matters - The company plans to raise up to ¥250,000,000 through a non-public offering of A-shares for the construction of a real-time intelligent review platform[17] - The company received a notice from the China Securities Regulatory Commission (CSRC) regarding the acceptance of its application for the non-public offering of shares[17] - The company has resumed the review of its non-public offering application after the approval of a major asset restructuring by the shareholders[21] Securities Investments - The company reported a total investment in securities amounting to 147,329,400 CNY, with a total of 21,108,000 shares held at the end of the reporting period[25] - The company experienced a loss of 2,072,220 CNY during the reporting period from its securities investments[26] - The company holds 11,200,000 shares of China Petroleum, representing 0.01% of total shares, with a book value of 48,369,630 CNY and a loss of 551,155 CNY[25] - The company has 1,000,000 shares of CITIC Limited, with a book value of 8,797,683 CNY and a loss of 246,051 CNY[25] - The company holds 1,500,000 shares of COSCO Shipping Holdings, with a book value of 4,675,271 CNY and a loss of 172,236 CNY[25] - The company has 4,000,000 shares of Pacific Online, with a book value of 3,589,582 CNY and a loss of 918,592 CNY[25] - The company holds 720,000 shares of China Reinsurance, with a book value of 940,342.5 CNY and a loss of 88,542 CNY[25] - The company has 300,000 shares of China Coal Energy, with a book value of 754,773.9 CNY and a loss of 95,960 CNY[25] - The company reported no derivative investments during the reporting period[27] Compliance and Governance - There were no violations regarding external guarantees or non-operating fund occupation by controlling shareholders during the reporting period[29][30]

Financial Performance - The company's operating revenue for 2017 was ¥183,993,714.97, a decrease of 15.15% compared to ¥216,833,347.58 in 2016[19] - The net profit attributable to shareholders for 2017 was ¥16,674,851.14, down 40.49% from ¥28,021,185.29 in 2016[19] - The net cash flow from operating activities was negative at ¥241,511,540.58, compared to a positive cash flow of ¥22,942,530.67 in 2016[19] - Basic earnings per share for 2017 were ¥0.0186, a decrease of 40.49% from ¥0.0312 in 2016[19] - Total assets at the end of 2017 were ¥1,448,558,143.15, a decrease of 2.93% from ¥1,492,269,915.26 at the end of 2016[19] - The net assets attributable to shareholders at the end of 2017 were ¥1,405,060,190.52, down 1.19% from ¥1,421,998,579.03 at the end of 2016[19] - The weighted average return on equity for 2017 was 1.17%, down from 2.02% in 2016[19] - The company reported a significant loss in the first three quarters, with a net profit of -¥38,837,727.86 in Q1, -¥41,152,092.99 in Q2, and -¥74,461,202.13 in Q3, before a profit of ¥171,125,874.12 in Q4[22] Revenue Breakdown - Revenue from the pharmaceutical and medical device bidding agency business decreased by 30.10% to ¥111,830,158.69 due to policy impacts[51] - The medical welfare management service (PBM) revenue grew by 6.36% to ¥46,411,110.92, indicating stability in this segment[51] - Revenue from the medical insurance fund comprehensive management service increased significantly by 95.51% to ¥25,674,445.36, reflecting successful business expansion[51] - Revenue from the Beijing region increased by 29.09% to CNY 44,703,189.21, up from CNY 34,630,393.95 in 2016[55] - The total revenue for the pharmaceutical and medical device segment reached ¥81,026,513.22, representing a 2.95% increase compared to ¥78,703,574.03 in the previous year[64] Business Strategy and Focus - The company has adjusted its business strategy to focus on health insurance services, including comprehensive management and big data services[50] - The company’s main business has shifted to health assurance services, including five key areas: comprehensive management of medical insurance funds, health big data services, pharmaceutical benefit management, third-party services for commercial health insurance, and medical artificial intelligence services[28] - The company aims to leverage technology to enhance medical services, focusing on clinical assistance, personal medical guidance, and comprehensive health management[35] - The company is focusing on health data services and third-party services for commercial health insurance as part of its growth strategy[95] - The company plans to transition from a single service model to a comprehensive solution provider, leveraging resources from its actual controller, China Guoxin[94] Investments and Assets - The company’s long-term equity investments increased by 292.14% to ¥177.89 million at the end of the reporting period, attributed to the change in accounting method following the sale of a stake in Guangdong Haihong[36] - The company’s cash and cash equivalents decreased by 31.18% to ¥634.54 million, primarily due to reduced income from pharmaceutical and medical device bidding agency services and increased personnel costs[36] - The company’s fixed assets decreased by 16.74% to ¥39.16 million, while intangible assets also saw a reduction of 16.04% to ¥170.38 million[36] - Other receivables increased significantly by 356.49% to ¥229.73 million, mainly due to the increase in receivables from the equity transfer of Guangdong Haihong[36] Corporate Governance and Compliance - The company has established a comprehensive salary assessment system to effectively control labor costs amid the expansion of its business[97] - The company has a governance structure that complies with relevant laws and regulations, ensuring transparent operations and protecting investor interests[200] - The company has no reported penalties from securities regulatory authorities for directors, supervisors, and senior management in the past three years[190] - The company guarantees the authenticity, accuracy, and completeness of the information provided, ensuring no false records or misleading statements exist[108] Future Outlook - The company expects to achieve growth in main business revenue in 2018, driven by the continuous expansion of the medical insurance market and the implementation of new services such as health data services and medical AI services over the next 3 to 5 years[96] - The company will continue to focus on the development of health insurance services and expects to maintain revenue and profit growth through the implementation of various new businesses[96] Shareholder Information - The company has committed to not reducing its shareholding until 36 months after the implementation of the share reform plan and the audited net profit growth rate is not less than 30% for three consecutive years[106] - The company has a negative retained earnings balance of -123,090,111.05 CNY as of the end of 2017, indicating ongoing financial challenges[102] - The company has completed the commitments regarding the sale of its equity stakes as of November 9, 2017[115] Employee and Management Structure - The company employed a total of 1,167 staff, with 36 in the parent company and 1,131 in major subsidiaries[194] - The educational background of employees shows that 763 hold a bachelor's degree or above, while 362 have a college diploma, and 42 have a secondary vocational education or below[195] - The company has a total of six independent directors, ensuring governance and oversight[186]

Financial Performance - Operating revenue for the reporting period was CNY 30,741,926.94, a decline of 36.14% year-on-year[8]. - Net profit attributable to shareholders of the listed company was a loss of CNY 74,461,202.13 for the reporting period[8]. - Basic earnings per share were -0.0828 CNY, compared to -0.1718 CNY in the same period last year[8]. - The weighted average return on net assets was -5.18%, down from -11.82% in the previous year[8]. - The company reported a net loss attributable to shareholders of ¥154.45 million, attributed to declining e-commerce revenue and high costs[16]. - The company anticipates a significant change in net profit compared to the previous year, with potential losses indicated[22]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,424,928,205.33, a decrease of 4.51% compared to the end of the previous year[8]. - Net assets attributable to shareholders of the listed company were CNY 1,259,619,745.29, down 11.42% from the previous year[8]. - Cash and cash equivalents decreased by 37.32% to ¥577.95 million due to a decline in revenue and increased personnel costs[16]. - The fair value of financial assets measured at fair value decreased by 39.40% to ¥70.36 million due to the sale of trading financial assets[16]. - The total value of securities investments held by the company is approximately 83.71 billion, with a fair value of 87.18 billion, resulting in a loss of 13.34 billion during the reporting period[23]. Cash Flow - The net cash flow from operating activities for the year-to-date was -CNY 409,702,313.87[8]. - Net cash flow from operating activities was negative at ¥409.70 million, reflecting reduced revenue and high personnel costs[17]. - Short-term borrowings increased significantly, contributing to a net cash flow from financing activities of ¥139.41 million[17]. Shareholder Information - The top shareholder, China Ocean Holdings Development Co., Ltd., holds 27.74% of the shares, totaling 249,345,593 shares[12]. - The total number of ordinary shareholders at the end of the reporting period was 51,171[12]. - The company completed the purchase of 5,871,627 shares at an average price of 34.058 CNY per share, accounting for 0.65% of the total share capital[19]. - The company’s commitment to not harm shareholder interests remains effective and is being fulfilled[20]. Strategic Initiatives - The company plans to raise up to ¥2.5 billion through a non-public offering to fund a real-time intelligent review platform[18]. - The company is currently planning a major asset restructuring, which carries significant uncertainty[18]. - The company aims to expand its business coverage and implement a new medical insurance cost control model through a joint venture with Guoxin (Shenzhen) Investment Co., Ltd.[19]. - The company is focusing on developing its PBM business and big data applications as part of its overall strategic planning[19]. Employee Stock Ownership Plans - The first phase of the employee stock ownership plan was successfully implemented, with a total of 200 million shares established[19]. - The second phase of the employee stock ownership plan has been terminated due to the inability to complete the purchase within the stipulated time frame[19]. - The company has committed to implementing an equity incentive plan linked to performance measures, ensuring compliance with regulatory requirements[21]. Compliance and Governance - There were no instances of non-compliance regarding external guarantees during the reporting period[27]. - The company reported no non-operational fund occupation by controlling shareholders or related parties[28]. - The company has not engaged in any derivative investments during the reporting period[24]. - The company has not initiated any targeted poverty alleviation efforts in the third quarter and has no plans for future initiatives[29].

Financial Performance - The company's operating revenue for the first half of 2017 was ¥81,386,088.54, a decrease of 18.10% compared to ¥99,375,504.56 in the same period last year[16]. - The net profit attributable to shareholders of the listed company was -¥79,989,820.85, representing a decline of 43.66% from -¥55,678,145.00 in the previous year[16]. - The company achieved operating revenue of ¥81,386,088.54, a decrease of 18.10% compared to the same period last year[35]. - The net profit attributable to shareholders was -¥79,989,820.85, representing a decline of 43.66% year-on-year[35]. - The comprehensive income totalled CNY -103,183,922.84, compared to CNY -64,385,559.79 in the same period last year, reflecting a decline of about 60.4%[124]. - The total profit for the first half of 2017 was CNY -91,138,073.12, compared to CNY -70,355,902.76 in the same period of 2016, indicating a decline of about 29.5%[123]. - The company reported a loss of 19.97 million for the period, with total revenue of 200.78 million, indicating a significant decline in performance[55]. - The company reported a net profit growth rate of no less than 30% for the year[65]. Cash Flow and Liquidity - The net cash flow from operating activities improved by 38.97%, amounting to -¥182,843,785.35 compared to -¥299,600,516.51 in the same period last year[16]. - The company reported a net cash outflow from operating activities of -¥182,843,785.35, an improvement of 38.97% compared to the previous year[36]. - Cash received from operating activities fell by 81.80% to ¥25,142,018.83, mainly due to a significant decrease in settlement payments compared to the previous year[38]. - The company's cash and cash equivalents increased to ¥676,767,253.26, representing 49.63% of total assets, up from 34.24% in the previous year[42]. - The company's cash and cash equivalents decreased from 922,057,036.33 RMB at the beginning of the period to 676,767,253.26 RMB at the end of the period, a decline of approximately 26.6%[113]. - The total cash and cash equivalents at the end of the period were 676,672,140.83 CNY, down from 921,961,462.96 CNY at the beginning of the period[132]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,363,673,233.79, down 8.62% from ¥1,492,269,915.26 at the end of the previous year[16]. - The net assets attributable to shareholders of the listed company decreased by 6.46%, totaling ¥1,330,112,871.37 compared to ¥1,421,998,579.03 at the end of the previous year[16]. - Long-term borrowings decreased by 45.49% to ¥452,565.35, primarily due to repayment of long-term loans[38]. - Total assets decreased from CNY 1,492,269,915.26 to CNY 1,363,673,233.79, a decline of approximately 8.6%[114]. - Total liabilities decreased from CNY 79,092,746.26 to CNY 53,514,987.63, a reduction of approximately 32.3%[115]. - The total equity attributable to the parent company at the end of the reporting period was 2,204 million, with a decrease of 11,895 million compared to the previous period[137]. Investments and Strategic Initiatives - The company has established a third-party medical insurance management evaluation service center in Foshan, enhancing its service offerings in healthcare management[24]. - The company is actively participating in the reform of medical insurance payment standards, having signed service agreements with approximately 30 medical insurance pooling areas across more than 10 provinces[25]. - The company signed a strategic cooperation agreement with Chengdu Baihui Ji Health Management Co., Ltd. to enhance the medical level of clinic staff and standardize management[27]. - The company completed the development of the medical supply chain hospital management platform and deployed it in multiple hospitals during the reporting period[28]. - The company has established a strong clinical medical database and developed the "Intelligent Management Platform for Medical Insurance Fund" to support its PBM business[31]. - The company plans to enhance research and development investments in 2017 to optimize its platform and maintain its competitive edge in the PBM business[58]. Shareholder and Corporate Governance - The company did not declare cash dividends or bonus shares for this reporting period[6]. - The controlling shareholder, Zhonghai Heng, committed to not reducing its shareholding within 12 months starting from January 8, 2016[66]. - The company did not engage in any derivative investments during the reporting period, indicating a conservative investment strategy[51]. - The company did not engage in any related party transactions during the reporting period, including asset or equity acquisitions or sales[76][77]. - The employee stock ownership plan aims to enhance the incentive mechanism for employees and management, promoting long-term development[71]. - The company has not experienced any major litigation or arbitration matters during the reporting period[69]. Risks and Challenges - The company faces policy risks related to its pharmaceutical electronic trading and e-commerce operations, which are closely tied to national healthcare reforms[58]. - Market risks include uncertainties in fee standards with social insurance fund management centers and commercial insurance institutions, which may affect profitability[58]. - The report indicates a need for strategic reassessment given the significant declines in key financial metrics[138]. - The overall financial health reflects challenges that may require management's attention to enhance shareholder value[144]. Compliance and Reporting - The company's half-year financial report has not been audited[67]. - The financial statements were approved by the board of directors on August 26, 2017, indicating a timely reporting process[151]. - The company confirms that its financial statements comply with accounting standards, accurately reflecting its financial position and operating results[156].

Financial Performance - The company's operating revenue for Q1 2017 was ¥39,195,200.67, a decrease of 30.05% compared to ¥56,029,409.31 in the same period last year[9] - The net profit attributable to shareholders was -¥38,837,727.86, representing a decline of 46.94% from -¥26,431,065.45 year-on-year[9] - The basic earnings per share decreased to -¥0.0432, down 46.94% from -¥0.0294 in the same quarter last year[9] - The weighted average return on net assets was -2.77%, a decline of 1.00% compared to -1.77% in the previous year[9] - Cash flow from sales decreased by 46.52% to ¥28,525,896.84, attributed to reduced revenue[17] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,431,162,182.00, a decrease of 4.09% from ¥1,492,269,915.26 at the end of the previous year[9] - The net assets attributable to shareholders decreased by 3.03%, from ¥1,421,998,579.03 to ¥1,378,883,398.16[9] - Accounts receivable increased by 98.54% to ¥13,502,284.66 due to revenue recognition from pharmaceutical e-commerce and transaction business[17] Investments and Development - Development expenses surged by 534.88% to ¥41,988,933.86, driven by investments in the intelligent supervision platform for medical insurance and smart healthcare[17] - The company is actively pursuing third-party medical insurance services, with pilot projects expected to launch in Q2 2017[18] - The company is advancing its smart medical platform development and trial operations in collaboration with Chengdu Baihui Ji Health Management Co., Ltd.[19] - The company is constructing a health big data platform service project in Hubei Province, laying the foundation for a comprehensive health ecosystem[18] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 51,364[12] - The largest shareholder, Zhonghai Hengshi Industrial Development Co., Ltd., held 27.74% of the shares, totaling 249,345,593 shares[13] - The controlling shareholder, Zhonghai Heng, has committed to not reduce its shareholding until 36 months after the completion of the share reform plan, provided the company achieves an audited net profit growth rate of no less than 30%[22] - The minimum selling price for any shares sold by Zhonghai Heng will not be lower than 24.50 RMB per share, which is above the adjusted historical high of 24.40 RMB[22] Regulatory Compliance and Corporate Governance - The company has committed to ensuring that its immediate return measures are effectively implemented, with specific commitments from its board and senior management[24] - The controlling shareholder has also pledged not to interfere with the company's management or infringe on its interests[24] - The company is focused on maintaining compliance with regulatory requirements and ensuring shareholder interests are protected[24] - The company has received feedback from the CSRC regarding its private placement application, requiring written explanations and responses within 30 days[21] Securities Investments - The company reported a total investment in securities amounting to CNY 109,228,289.71, with a total of 25,424,000 shares held[25] - The investment in China National Offshore Oil Corporation (stock code: 00857) resulted in a loss of CNY 899,220.58 during the reporting period[25] - The investment in Xtrackers A50 China ETF (stock code: 02823) generated a profit of CNY 1,284,600.78[25] - The company held 660,000 shares of China National Pharmaceutical Group (stock code: 01177), with a profit of CNY 553,448.87[26] - The total market value of the securities held at the end of the reporting period was CNY 115,509,429.07[26] - The company did not engage in any derivative investments during the reporting period[27] Investor Relations - The company conducted multiple investor relations activities, including site visits and phone communications, throughout the reporting period[28] - The company anticipates significant changes in net profit compared to the same period last year, but specific figures were not disclosed[25]

Financial Performance - The company's operating revenue for 2016 was CNY 216,833,347.58, representing an increase of 11.87% compared to CNY 193,827,322.93 in 2015[16]. - The net profit attributable to shareholders for 2016 was CNY 28,021,185.29, a growth of 21.50% from CNY 23,063,388.90 in the previous year[16]. - The net cash flow from operating activities increased by 71.07% to CNY 22,942,530.67, up from CNY 13,410,825.79 in 2015[16]. - The total assets at the end of 2016 were CNY 1,492,269,915.26, showing a slight increase of 0.71% from CNY 1,481,815,750.14 at the end of 2015[16]. - The basic earnings per share for 2016 was CNY 0.0312, reflecting a 21.50% increase from CNY 0.0257 in 2015[16]. - The weighted average return on net assets was 2.02%, up from 1.74% in the previous year[16]. - Total revenue for the year reached CNY 216,755,347.58, an increase of 12.24% compared to 2015[42]. - The revenue from the pharmaceutical e-commerce and trading business was CNY 203,623,406.27, up 11.91% year-on-year[42]. - The medical welfare management business generated revenue of CNY 13,131,941.31, reflecting a growth of 17.71% from the previous year[42]. - The company's cash balance at the end of the reporting period was CNY 922,057,036.33, indicating strong liquidity[42]. Investment and Assets - The company recorded a non-operating income of CNY 108,731,184.91 from the disposal of non-current assets in 2016[21]. - The company reported a total non-operating income of CNY 126,826,655.48, with a significant increase in investment income from available-for-sale financial assets[22]. - The company's equity assets increased by 91.43% year-on-year, primarily due to investments in Wuhan Blue Star Software Technology Co., Ltd. and Hangzhou Tutu Information Technology Co., Ltd.[34]. - Fixed assets decreased by 33.42% year-on-year, mainly due to the sale of equity in Beijing YaoTong and Chongqing WeiHong[34]. - Intangible assets rose by 48.92% year-on-year, attributed to the development of the medical insurance fund decision analysis system and the pharmaceutical e-commerce project center system[34]. - The company’s total assets included cash of ¥922,057,036.33, which accounted for 61.79% of total assets, up from 54.75% in 2015[64]. Business Development and Strategy - The company expanded its PBM (Pharmacy Benefit Management) services to cover nearly 200 cities across 24 provinces/municipalities in China, enhancing its role in healthcare cost control[27]. - The company has signed service agreements with over 30 medical insurance coordination areas across more than 10 provinces, involving over 35,000 product specifications for medical insurance payment evaluation and standard setting[29]. - The company is developing new health-related mobile internet tools and expanding its health insurance offerings, including customized accident insurance and diabetes-related insurance products[30]. - The company initiated a pilot program for smart healthcare, leveraging its accumulated medical data and AI technology for applications in disease diagnosis and health intervention[30]. - The company is actively participating in the national cross-province medical insurance settlement system, enhancing its market position in Guangdong province[28]. - The company aims to enhance its health management service model, focusing on intelligent management of medical insurance funds and expanding its clinical knowledge database[85]. Research and Development - Research and development expenses increased by 45.08% to ¥101,302,923.00 in 2016, accounting for 46.72% of operating revenue, up from 36.03% in 2015[58][59]. - The number of R&D personnel increased by 24.39% to 974, representing 56.07% of the total workforce[58]. Shareholder and Governance - The company plans not to distribute cash dividends or issue bonus shares for the year[6]. - The company will not distribute cash dividends for 2016 due to a negative retained earnings balance of CNY -91,851,507.85[96]. - The company has a capital reserve balance of CNY 22,327,982.16 available for distribution, but will not proceed with capital reserve conversion in 2016[96]. - The company’s actual controller and shareholders have fulfilled their commitments during the reporting period, with no non-operating fund occupation by controlling shareholders or related parties[102]. - The company has made commitments regarding the non-reduction of shares by its controlling shareholder within 12 months starting from January 8, 2016[101]. - The company has not engaged in any significant related party transactions during the reporting period[116]. Audit and Compliance - The company appointed Da Hua Accounting Firm (Special General Partnership) as the auditor, with a fee of 1.4 million CNY, including 500,000 CNY for internal control audit services[108]. - The internal control evaluation report indicated that 100% of the total assets and operating income of the evaluated units were included in the consolidated financial statements[185]. - The internal control audit report issued by the accounting firm provided a standard unqualified opinion, confirming the effectiveness of internal controls related to financial statements as of December 31, 2016[190]. - The financial statements were audited by Dahua Certified Public Accountants, with the audit report signed on March 16, 2017[194]. - The company confirmed that the 2015 financial statements were prepared in strict accordance with new accounting standards, accurately reflecting its financial position and operating results[181]. Employee and Management - The company employed a total of 1,737 staff, with 1,089 holding a bachelor's degree or above[163]. - The company has established a performance management system that aligns salary incentives with performance evaluations for senior management[165]. - The remuneration for the president and CEO was 608,000 yuan, while the vice president and CFO received 584,700 yuan[162]. - The company has initiated various training programs aimed at enhancing employee skills and leadership capabilities[166]. Risks and Future Outlook - The company recognizes potential risks including policy, market, competition, and financial risks, and plans to innovate and adapt to mitigate these risks[89]. - The company has not set specific operational plans for 2017 but will focus on steady business development and nurturing new profit growth points[86].

Financial Performance - Net profit attributable to shareholders was a loss of CNY 29,466,837.17, with a year-to-date loss of CNY 85,144,982.17[7] - The weighted average return on net assets was -2.02%, down from 2.17% in the same period last year[7] - The net profit after deducting non-recurring gains and losses was a loss of CNY 33,391,056.37 for the reporting period[7] - The company reported a basic and diluted earnings per share of -0.0328 CNY[7] - The company reported a significant increase in cash received from operating activities, totaling 343,834,403.27 CNY, compared to 176,607,403.83 CNY in the same period last year, marking an increase of approximately 94.5%[56] - The company experienced a significant reduction in net loss for the third quarter, improving from CNY 56,474,877.42 to CNY 33,216,610.55[42] - The net profit for the third quarter was -104,224,112.73 CNY, compared to -109,251,239.81 CNY in the same period last year, showing an improvement of approximately 5.5%[49] - The total comprehensive income for the third quarter was -95,786,962.53 CNY, compared to -89,704,774.74 CNY in the previous year, indicating a decline of about 6.5%[50] Revenue and Costs - Operating revenue for the reporting period increased by 26.55% to CNY 48,139,332.83, while year-to-date revenue rose by 18.99% to CNY 147,514,837.39[7] - Revenue from sales of goods and services increased by 31.92% to RMB 154,851,690.81 compared to the same period last year, driven by growth in core business income[16] - Total operating revenue for the third quarter reached CNY 48,139,332.83, an increase from CNY 38,039,146.30 in the previous period[40] - Total operating costs amounted to CNY 77,099,073.75, compared to CNY 54,770,462.76 in the prior period[40] - Total operating costs for the year-to-date period were CNY 242,117,423.85, compared to CNY 196,927,661.46 in the previous year[48] - Management expenses for the year-to-date period increased to CNY 127,864,016.39 from CNY 101,760,831.10[48] Assets and Liabilities - Total assets at the end of the reporting period decreased by 7.90% to CNY 1,364,694,447.98 compared to the end of the previous year[7] - The company's total liabilities decreased by 34.75% to RMB 1,015,416.58, primarily due to the repayment of long-term borrowings[16] - Current liabilities decreased to CNY 79,346,022.89 from CNY 100,304,642.19[34] - Total liabilities decreased to CNY 80,361,439.47 from CNY 101,860,779.10[34] - Total equity attributable to shareholders of the parent company was CNY 1,299,738,815.16, down from CNY 1,376,446,647.13[35] Cash Flow - The net cash flow from operating activities for the year-to-date was a negative CNY 258,826,393.64[7] - The cash flow from operating activities showed a net outflow of -258,826,393.64 CNY, worsening from -152,894,263.16 CNY in the previous year[56] - The cash outflow from investment activities totals CNY 134,091,697.36, with a net cash flow from investment activities of -CNY 75,115,951.35, worsening from -CNY 45,368,422.04 in the previous period[57] - Cash inflow from financing activities is CNY 165,000.00, significantly lower than CNY 385,000.00 in the previous period, resulting in a net cash flow from financing activities of -CNY 479,103.76[57] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 38,974[11] - The largest shareholder, Zhonghai Hengshi Industrial Development Co., Ltd., holds 27.64% of the shares, totaling 248,394,863 shares, with 193,290,000 shares pledged[11] - The company did not engage in any repurchase transactions among its top shareholders during the reporting period[13] - The company completed the purchase of 5,871,627 shares at an average price of 34.058 CNY per share, representing 0.65% of the total share capital[18] - The company’s major shareholder, China Ocean Holdings, has committed to not reducing its non-circulating shares until certain conditions are met, including a net profit growth rate of no less than 30% for three consecutive years[19] Strategic Initiatives - The company plans to raise up to 250 million CNY through a private placement to fund the construction of a real-time intelligent review platform[18] - The private placement will involve issuing no more than 57 million shares at a minimum price of 44.10 CNY per share[18] - The company aims to optimize internal resources and adjust its business structure to enhance profitability[18] - The employee stock ownership plan has been successfully implemented, with a total of 200 million shares established[18] - The company’s board of directors has approved the private placement, pending shareholder and regulatory approvals[18] Other Financial Information - Non-operating income included CNY 3,123,150.93 from dividends and investment income from trading financial assets[9] - The company reported a total of ¥110,448,471.39 in securities investments, with a total loss of ¥3,846,634.47 during the reporting period[22] - The company has no derivative investments during the reporting period[23] - There were no violations regarding external guarantees during the reporting period[26] - The company has not reported any non-operating fund occupation by controlling shareholders during the reporting period[27]