证券代码：000705 股票简称：浙江震元 编号：2019-055 浙江震元股份有限公司关于参加浙江辖区上市公司 投资者网上集体接待日活动的公告 本公司及董事会全体成员保证公告内容的真实、准确和完整，没 有虚假记载、误导性陈述或者重大遗漏。 为进一步加强与投资者的沟通交流，浙江震元股份有限公司（以 下简称"公司"）将参加由中国证监会浙江监管局指导、浙江上市公 司协会与深圳市全景网络有限公司共同举办的"沟通促发展 理性共 成长"辖区上市公司投资者网上集体接待日主题活动，现将有关事项 公告如下： 本次投资者网上集体接待日活动将通过深圳市全景网络有限公 司提供的网上平台举行，投资者可以登录"全景·路演天下"网站 （http://rs.p5w.net）参与公司本次投资者网上接待日活动。网上 互动交流时间为 2019 年 11 月 5 日（星期二）下午 15:30-17:00。 届时公司总经理、财务总监、董事会秘书等将采用网络远程方式， 就公司治理、发展战略、经营状况、可持续发展等投资者关心的问题， 与投资者进行沟通。 欢迎广大投资者积极参与。 特此公告。 浙江震元股份有限公司董事会 二Ｏ一九年十一月一日 ...

2019 年第三季度报告全文 浙江震元股份有限公司 公司董事长吕军先生、财务总监金明华先生及财务经理丁佩娟女 士声明：保证季度报告中财务报表的真实、准确、完整。 非标准审计意见提示 □ 适用 不适用 第二节 主要财务数据及股东变化 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 浙江震元股份有限公司 董事长： 吕 军 二〇一九年十月二十五日 浙江震元 2019 年第三季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告 内容的真实、准确、完整，不存在虚假记载、误导性陈述或者重大遗 漏，并承担个别和连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 □是 否 2 | 非流动资产处置损益（包括已计提资产减值准备的冲销部分） | 8,805,011.41 | | --- | --- | | 越权审批或无正式批准文件的税收返还、减免 | 114,343.79 | | 计入当期损益的政府补助（与企业业务密切相关，按照国家统一标 | 2,218,091.20 | | 准定额或定量享受的政府补助除外） | | | 计入当期损益的对非金融企业收取的资金占用 ...

Financial Performance - The company's operating revenue for the first half of 2019 was RMB 1,564,910,070.21, representing a 14.36% increase compared to RMB 1,368,403,560.15 in the same period last year[19]. - The net profit attributable to shareholders for the first half of 2019 was RMB 46,234,554.56, an increase of 8.05% from RMB 42,789,621.64 in the previous year[19]. - The basic earnings per share for the first half of 2019 was RMB 0.1384, up 8.04% from RMB 0.1281 in the same period last year[19]. - The total assets at the end of the reporting period were RMB 2,266,598,463.49, a 6.90% increase from RMB 2,120,304,271.19 at the end of the previous year[19]. - The net assets attributable to shareholders at the end of the reporting period were RMB 1,467,480,878.42, reflecting a 3.14% increase from RMB 1,422,866,650.44 at the end of the previous year[19]. - The net cash flow from operating activities improved to RMB -85,230,730.68, a 27.68% increase compared to RMB -117,859,144.32 in the same period last year[19]. - The company reported non-recurring gains and losses totaling RMB 13,259,647.24 for the reporting period[22]. - The weighted average return on net assets increased to 3.19%, up 0.14 percentage points from 3.05% in the previous year[19]. Revenue and Sales Growth - The company achieved a total revenue of 1.565 billion yuan in the first half of the year, representing a year-on-year growth of 14.36%[30]. - The net profit attributable to shareholders reached 46.2346 million yuan, an increase of 8.05% compared to the previous year[30]. - The sales of the main products, including injection adenosine diphosphate and injection celecoxib, grew by 46.01% and 26.71% respectively, each exceeding 60 million yuan in sales[32]. - The company opened 6 new direct stores and 4 franchise stores, with retail terminal sales increasing by 44.66% year-on-year[34]. - E-commerce sales surged by 69.93% year-on-year, reflecting the company's strong performance in the online market[34]. - The total revenue from the pharmaceutical industry segment was RMB 353,930,197.77, with a gross margin of 50.77%, reflecting a year-on-year increase of 16.56%[40]. - The domestic revenue reached RMB 1,559,083,385.80, showing a growth of 20.99% compared to RMB 1,231,772,950.16 in the previous year[40]. Investments and Development - The company has established 10 new authentic medicinal material bases covering over 13,000 acres, enhancing its supply chain capabilities[33]. - The company is actively developing new products, with projects like esomeprazole sodium and ligustrazine raw materials nearing completion of small-scale development[32]. - The company has successfully integrated its logistics with JD Logistics, enhancing its operational efficiency[31]. - The company’s quality management systems have been strengthened, with successful GMP re-certifications for its pharmaceutical and herbal medicine subsidiaries[35]. - Research and development investment increased by 11.16% to RMB 17,896,747.64 from RMB 16,099,303.17 in the previous year[38]. - The company has established over 40 medicinal herb planting bases across the country, optimizing supply-side products and ensuring quality control[60]. Financial Position and Cash Flow - The company reported a significant increase in cash flow from investing activities, with a net cash flow of RMB 83,054,023.30, compared to RMB -16,517,475.53 in the previous year, marking a 602.83% increase[38]. - The company reported a 100% decrease in short-term loans, with the amount dropping to RMB 0.00 from RMB 30,000,000.00 in the previous year[38]. - Other payables increased by 364.91% to RMB 169,745,914.16, primarily due to the receipt of demolition compensation for the Zhenyuan Building[38]. - Accounts receivable increased to ¥513,658,229.80, representing a 22.66% increase from ¥449,658,586.19 in the previous year[44]. - Inventory rose to ¥485,974,502.49, a 21.44% increase compared to ¥431,998,296.68 last year[44]. - Fixed assets decreased to ¥516,080,205.97, down 1.95% from ¥525,206,274.76 in the previous year[44]. - The company reported no significant equity investments during the reporting period[45]. - The company has no securities investments during the reporting period[47]. Challenges and Risks - The company anticipates a significant change in cumulative net profit for the period from the beginning of the year to the next reporting period, potentially resulting in a loss compared to the same period last year[56]. - The overall decline in drug prices due to the "4+7" procurement policy is expected to compress profit margins in the pharmaceutical sector, impacting the company's profitability[56]. - The implementation of the medical insurance payment price policy is projected to lead to a price drop across the company's commercial chain products, affecting sales and profits[57]. - The consistency evaluation policy for generic drugs poses a significant challenge, with the risk of longer recovery periods for R&D investments[59]. - The company has faced increased production costs due to stricter quality standards for traditional Chinese medicine pieces, necessitating improvements in production processes[60]. Corporate Governance and Compliance - The company has not distributed cash dividends or bonus shares for the half-year period, nor has it increased capital through public reserves[63]. - There are no significant litigation or arbitration matters reported during the reporting period[64]. - The company reported no significant related party transactions during the reporting period[71]. - There were no non-operating fund occupations by controlling shareholders or their affiliates during the reporting period[72]. - The company has not engaged in any major contracts or guarantees during the reporting period[78]. - The company has established a hazardous waste treatment facility with a daily processing capacity of 2,000 tons, ensuring compliance with discharge standards[82]. - The total amount of hazardous waste discharged by the company as of June 30 was 416.1892 tons, with an annual approved total of 2,336.93 tons[80]. - The company has a dedicated environmental protection department to ensure compliance with environmental laws and regulations, with no major environmental incidents reported during the period[81]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 27,661[93]. - The total number of shares outstanding is 334,123,286, with 84.40% being unrestricted shares[92]. - The largest shareholder, Shaoxing Zhenyuan Health Industry Group Co., Ltd., holds 19.94% of the shares, totaling 66,627,786 shares, with 14,552,826 shares being freely tradable[95]. - The second-largest shareholder, Shenzhen Zhongzhi Investment Co., Ltd., holds 1.85% of the shares, totaling 6,176,126 shares, all of which are freely tradable[96]. - The company has not undergone any changes in its controlling shareholder or actual controller during the reporting period[99]. - There were no repurchase agreements executed by the top 10 shareholders during the reporting period[98]. - The company has not issued any preferred shares during the reporting period[101]. Accounting and Financial Reporting - The financial report for the first half of 2019 has not been audited[106]. - The company operates in the pharmaceutical manufacturing and wholesale industry, with a focus on various pharmaceutical products including active pharmaceutical ingredients and traditional Chinese medicine[108]. - The company has included nine subsidiaries in its consolidated financial statements for the reporting period[109]. - The company confirms that there are no significant doubts regarding its ability to continue as a going concern for the next 12 months[112]. - The accounting treatment for business combinations under common control involves measuring the acquired assets and liabilities at their book value in the consolidated financial statements of the ultimate controlling party[117]. - For business combinations not under common control, goodwill is recognized when the purchase cost exceeds the fair value of identifiable net assets acquired; if the cost is lower, the difference is recognized in current profit or loss[118]. - The consolidated financial statements include all subsidiaries controlled by the parent company, based on the financial statements of the parent and its subsidiaries[119]. - Cash and cash equivalents are defined as cash on hand and deposits that are readily available for payment, while cash equivalents are short-term, highly liquid investments easily convertible to known amounts of cash[120]. - Foreign currency transactions are translated at the spot exchange rate on the transaction date, with differences recognized in current profit or loss unless related to capitalized assets[121]. - Financial assets are classified at initial recognition into three categories: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in profit or loss[122]. - Financial liabilities are classified into four categories at initial recognition, including those measured at fair value with changes recognized in profit or loss[123]. - Subsequent measurement of financial assets at amortized cost uses the effective interest method, with gains or losses recognized in profit or loss upon derecognition or impairment[124]. - Financial liabilities measured at fair value with changes recognized in profit or loss include trading liabilities and those designated at fair value, with changes due to the company's credit risk recognized in other comprehensive income[125]. - Financial assets are derecognized when the contractual rights to cash flows expire or when they are transferred and meet derecognition criteria[126]. - The company measures expected credit losses based on the weighted average of credit losses for financial instruments, with significant increases in credit risk leading to loss provisions calculated over the entire lifetime of the financial instrument[128]. - For financial assets with significant individual amounts, the company assesses and provides for bad debts if the present value of future cash flows is less than the carrying amount, specifically for amounts over 10 million yuan, which account for 10% of the total receivables[131]. - The company uses a simplified measurement method for receivables without significant financing components, measuring loss provisions equivalent to the expected credit losses over the entire lifetime[128]. - Inventory is measured at the lower of cost and net realizable value, with provisions for inventory write-downs made when costs exceed net realizable values[133]. - The company employs a perpetual inventory system for tracking inventory levels and movements[133]. - Financial assets and liabilities are not offset in the balance sheet unless specific criteria are met, including having a legally enforceable right to offset and planning to settle on a net basis[130]. - The company uses a fair value measurement hierarchy, with Level 1 inputs being unadjusted quoted prices in active markets for identical assets or liabilities[130]. - For financial instruments, the company assesses credit risk at each balance sheet date to determine if there has been a significant increase in credit risk since initial recognition[129]. - The company applies a monthly weighted average method for inventory cost calculation[133]. - The company recognizes loss provisions for financial assets in the income statement, with adjustments made to the carrying amounts of the assets accordingly[130]. - The company utilizes the cost method for long-term equity investments under control and the equity method for joint ventures and associates[137]. - The depreciation rates for fixed assets vary, with general equipment at 19.00%-9.50% and specialized equipment at 9.70%[141]. - Investment properties are measured at cost and depreciated similarly to fixed assets[139]. - The company recognizes impairment for long-term assets if their recoverable amount is less than their carrying value[147]. - The company capitalizes borrowing costs directly attributable to the acquisition of qualifying assets[145]. - The amortization period for land use rights is between 40 to 50 years, while software is amortized over 2 to 5 years[146]. - The company assesses whether multiple transactions constitute a "package deal" for accounting purposes[136]. - The initial investment cost for equity investments in non-similar control mergers is based on the fair value of the consideration paid[136]. - The company adjusts capital reserves for the difference between the disposal price and the net asset share of the subsidiary at the time of loss of control[138]. - The company recognizes investment income from the difference between the fair value and carrying amount of equity held prior to acquisition[136]. - Long-term deferred expenses are amortized over a period exceeding one year, with any unamortized balance transferred to current profit and loss if the expenses do not benefit future periods[148]. - Employee compensation includes short-term salaries, post-employment benefits, severance benefits, and other long-term employee benefits, with specific accounting treatments for each category[149]. - Revenue recognition for sales of goods occurs when the risks and rewards of ownership are transferred to the buyer, and the revenue amount can be reliably measured[151]. - The company primarily sells pharmaceuticals, with revenue recognition for domestic sales contingent upon delivery and collection of payment[152]. - Government grants are recognized when conditions are met, with monetary grants measured at received or receivable amounts, and non-monetary grants measured at fair value[154]. - Deferred tax assets and liabilities are calculated based on the difference between the carrying amount of assets and liabilities and their tax bases, using applicable tax rates[156]. - Operating leases are accounted for on a straight-line basis over the lease term, with initial direct costs recognized in the current period[157]. - Changes in significant accounting policies are made in accordance with the revised financial reporting formats issued by the Ministry of Finance[158]. Cash and Receivables Management - The company reported a total of 167,459,848.84 CNY in cash and cash equivalents at the end of the period, down from 215,622,333.16 CNY at the beginning of the period, indicating a decrease of approximately 22.3%[164]. - Accounts receivable amounted to 565,088,584.61 CNY, with a bad debt provision of 51,430,354.81 CNY, representing a provision ratio of 9.10%[168]. - The company recognized a bad debt provision of 2,175,046.47 CNY during the period, with a reversal of 2,157,064.93 CNY, resulting in a net increase of 17,981.54 CNY[170]. - The top five accounts receivable customers accounted for 18.74% of the total accounts receivable, with the largest customer having a balance of 25,517,634.17 CNY[170]. - The company’s subsidiary, Zhenyuan Pharmaceutical, is recognized as a high-tech enterprise, benefiting from a reduced corporate income tax rate of 15% for the years 2017-2019[163]. - The company has a total of 552,467,477.09 CNY in accounts receivable, with 97.77% of this amount classified under credit risk characteristics[168]. - The company’s management expenses decreased to 52,535,072.79 CNY from 68,634,375.96 CNY, reflecting a reduction of approximately 23.5%[163]. - The company has a construction in progress amounting to 10,811,912.78 CNY, indicating ongoing investments in development[164]. - The company’s other receivables totaled 58,109,251.74 CNY, which includes various receivables not classified elsewhere[164]. - The company has implemented new financial instrument standards since January 1, 2019, with no significant impact on the financial statements reported[160]. - The total balance of prepaid expenses at the end of the period is 81,319,261.48, with 99.32% of it being within one year[171]. - The top five prepaid expense balances account for 40.74% of the total, with Taiji Group accounting for 13.52% at 10,994,583.48[172]. - Other receivables total 38,616,751.79, with a bad debt provision of 8,226,170.98, representing 21.30%[175]. - The balance of inventory at the end of the period is 487,368,668.50, with a provision for inventory depreciation of 1,394,166.01[179]. - The company has financial products amounting to 35,000,000.00 as part of other current assets[182]. - The balance of fixed income receivables increased from 15,317,123.28 to 20,567,123.28, showing a growth of 34.88%[176]. - The company reported a bad debt provision of 2,249,859.68 for the current period[175]. - The balance of inventory increased from 438,682,590.10 to 487,368,668.50, indicating a growth of 11.06%[179]. - The total amount of other receivables increased from 29,924,808.43 to 38,616,751.79, reflecting a growth of 28.96%[176]. - The company has a total of 61,073,855.00 in other current assets, up from 23,443,528.47[182]. - The total balance of other equity investments increased from CNY 102,333,780.00 at the beginning of the period to CNY 113,538,276.00 at the end of the period, representing an increase of approximately 10.7%[183]. - The book value of investment properties remained unchanged at CNY 17,445,289.41, with a total accumulated depreciation of CNY 11,949,202.37 at the end of the period[186]. - The total fixed assets decreased from CNY 1,043,429,466.74 at the beginning of the period to CNY 1,040,833,261.95 at the end of the period, reflecting a decrease of approximately 0.5%[187]. - The accumulated depreciation for fixed assets increased by CNY 27,426,588.88 during the period, bringing the total to CNY 524,753,055.98[187]. - The construction in progress increased from CNY 13,812,409.52 at the beginning of the period to CNY 14,671,730.11 at the end of the period, indicating a growth of approximately 6.2%[189]. - The total book value of temporarily idle fixed assets was CNY 8,544,804.20, with the majority being buildings and specialized equipment[188]. - The company plans to hold investments in East China Pharmaceutical Co., Ltd. and Shaoxing Bank Co., Ltd. for dividend rights and investment returns, in line with new

Financial Performance - The company's operating revenue for Q1 2019 was CNY 776,992,792.79, representing a 9.66% increase compared to CNY 708,577,457.30 in the same period last year[6] - The net profit attributable to shareholders was CNY 16,258,642.95, reflecting a 12.20% increase from CNY 14,490,905.69 year-on-year[6] - The net profit after deducting non-recurring gains and losses was CNY 13,899,867.29, which is a significant increase of 32.10% compared to CNY 10,522,608.38 in the previous year[6] - The basic earnings per share for the period was CNY 0.0487, which is a 12.21% increase compared to CNY 0.0434 in the same period last year[6] - The total profit for Q1 2019 was CNY 18.50 million, up 12.6% from CNY 16.46 million in Q1 2018[30] - The company's operating profit for Q1 2019 was CNY 18.24 million, an increase of 10.7% from CNY 16.48 million in Q1 2018[30] - The company reported a net profit margin improvement, with net profit for Q1 2019 reflecting a positive trend compared to the previous year[29] Cash Flow - The net cash flow from operating activities was negative CNY 108,830,861.58, a decline of 113.08% compared to negative CNY 51,074,451.29 in the same period last year[6] - The total cash inflow from operating activities was CNY 749,280,165.96, an increase of 8.4% compared to CNY 690,836,971.70 in the previous period[32] - The cash outflow from operating activities totaled CNY 858,111,027.54, up 15.6% from CNY 741,911,422.99 in the previous period[32] - The net cash flow from operating activities was -CNY 108,830,861.58, worsening from -CNY 51,074,451.29 in the previous period[32] - The cash inflow from investment activities was CNY 13,225.00, a significant decrease from CNY 20,150,184.93 in the previous period[32] - The cash outflow from investment activities was CNY 11,825,712.33, down from CNY 23,043,142.03 in the previous period[32] - The net cash flow from investment activities was -CNY 11,812,487.33, compared to -CNY 2,892,957.10 in the previous period[32] - The cash outflow from financing activities was CNY 342,562.50, slightly increasing from CNY 332,822.20 in the previous period[32] - The net cash flow from financing activities was -CNY 342,562.50, compared to -CNY 332,822.20 in the previous period[32] - The total cash and cash equivalents at the end of the period were CNY 82,103,962.76, down from CNY 167,396,807.70 in the previous period[32] - The net increase in cash and cash equivalents was -CNY 121,323,691.93, worsening from -CNY 56,335,831.11 in the previous period[32] Assets and Liabilities - The total assets at the end of the reporting period were CNY 2,209,348,519.68, an increase of 4.20% from CNY 2,120,304,271.19 at the end of the previous year[6] - Total liabilities as of March 31, 2019, were CNY 748,586,434.05, compared to CNY 677,021,602.66 at the end of 2018, reflecting an increase of 10.55%[28] - The company's equity attributable to shareholders was CNY 1,440,152,064.81, an increase from CNY 1,422,866,650.44 in the previous period[28] - Deferred income tax liabilities increased to CNY 19,362,842.14 from CNY 15,679,352.14, showing a rise of 23.3%[28] - Total assets reached CNY 2,209,348,519.68 as of March 31, 2019, up from CNY 2,120,304,271.19 at the end of 2018, indicating a growth of 4.1%[28] Shareholder Information - The total number of shareholders at the end of the reporting period was 28,370[9] - The largest shareholder, Shaoxing Zhenyuan Health Industry Group Co., Ltd., holds 19.94% of the shares, totaling 66,627,786 shares[9] Expenses - Sales expenses increased by 40.01% from CNY 72,391,863.05 to CNY 101,354,942.27, driven by changes in the sales model under the two-invoice system[14] - The company reported a significant increase in operating expenses, which may impact future profitability and cash flow management[14] - Research and development expenses for Q1 2019 were CNY 7.11 million, a decrease of 12.4% from CNY 8.12 million in the previous year[30] Other Financial Metrics - The gross profit margin improved to 4.5% in Q1 2019 from 5.2% in Q1 2018, indicating a slight decline in profitability despite revenue growth[31] - Other income decreased by 92.32% from CNY 2,677,012.40 to CNY 205,562.09, as there were no contributions from the subsidiary this period[14] - The company reported a total comprehensive income of CNY 27.50 million for Q1 2019, compared to CNY 28.36 million in Q1 2018, reflecting a decrease of 3.0%[30] - Other comprehensive income after tax for Q1 2019 was CNY 11.05 million, down from CNY 13.87 million in the previous year[31] Audit and Standards - The company has not undergone an audit for the first quarter report[37] - The financial report reflects the implementation of new financial instrument and revenue recognition standards, impacting the financial statements[37]

股票代码：000705 股票简称：浙江震元 公告编号：2019-026 浙江震元股份有限公司关于举办投资者接待日活动的公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整， 没有虚假记载、误导性陈述或重大遗漏。 根据中国证券监督管理委员会浙江监管局下发的《浙江辖区上市 公司投资者接待日工作指引》的要求，为进一步加强投资者关系管理， 增进公司与广大投资者之间的沟通与交流，公司定于 2019 年 4 月 26 日下午举办投资者接待日活动，现将有关事项公告如下： 一、接待日及时间 2019 年 4 月 26 日（星期五）下午 14:30-17:00 二、接待地点 公司十楼会议室(浙江省绍兴市越城区中兴中路 276 号现代大厦 A 座） 三、登记预约 为更好地安排本次活动，有意参与本次活动的投资者请提前与公 司董事会办公室联系登记。预约时间：2019 年 4 月 23 日、24 日(上午 9：00-11：00，下午 14：00-16 ：00 )。 预约电话：0575-85144161、85139563 邮箱：000705@zjzy.com 联系传真：0575-85148805 四、公司参与人员 公司董事长、 ...

Financial Performance - The company's operating revenue for 2018 was ¥2,858,058,626.14, representing a 10.87% increase compared to ¥2,577,916,046.90 in 2017[18]. - The net profit attributable to shareholders for 2018 was ¥70,884,105.74, which is a 16.05% increase from ¥61,082,490.36 in 2017[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥57,876,399.09, up 29.58% from ¥44,665,601.56 in 2017[18]. - The basic earnings per share for 2018 was ¥0.21, an increase of 16.67% from ¥0.18 in 2017[18]. - The total assets at the end of 2018 were ¥2,120,304,271.19, reflecting a 3.37% increase from ¥2,051,128,213.05 at the end of 2017[18]. - The net assets attributable to shareholders at the end of 2018 were ¥1,422,866,650.44, a 3.94% increase from ¥1,368,925,404.70 at the end of 2017[18]. - The net cash flow from operating activities for 2018 was ¥25,488,980.32, a decrease of 50.72% compared to ¥51,721,832.31 in 2017[18]. - The weighted average return on equity for 2018 was 5.08%, an increase of 0.49 percentage points from 4.59% in 2017[18]. - Total revenue for the year was approximately 2.86 billion yuan, with a quarterly breakdown of 708.58 million yuan in Q1, 659.83 million yuan in Q2, 686.51 million yuan in Q3, and 803.14 million yuan in Q4[21]. - Net profit attributable to shareholders for the year was approximately 70.88 million yuan, with quarterly figures of 14.49 million yuan in Q1, 28.30 million yuan in Q2, 13.17 million yuan in Q3, and 14.92 million yuan in Q4[21]. Dividend Distribution - The company plans to distribute a cash dividend of 0.30 RMB per 10 shares to all shareholders, based on a total of 334,123,286 shares[5]. - The company reported a net profit of CNY 27,008,908.31 for the year 2018, with a proposed cash dividend of CNY 10,023,698.58, representing a distribution of CNY 0.30 per 10 shares[85]. - The total distributable profit for shareholders in 2018 was CNY 187,364,354.23, with the cash dividend accounting for 100% of the profit distribution[86]. - The company did not distribute profits for the years 2016 and 2017, focusing instead on investments in the health sector and new retail business models[84]. Corporate Governance - The company emphasizes the importance of accurate and complete financial reporting, with the board members confirming the authenticity of the annual report[4]. - The company has a comprehensive corporate governance structure, ensuring accountability and transparency in its operations[14]. - The company has engaged in six investor relations activities during the reporting period, involving over 30 institutions and six individuals[80]. - The company has committed to exploring stock incentive mechanisms in line with national regulations, with ongoing compliance since 2006[87]. - The governance structure complies with relevant regulations, ensuring effective decision-making and risk management[146]. - The board includes independent directors with significant academic and professional credentials, ensuring governance and oversight[136]. Risk Management - The annual report includes a discussion on potential risks and measures for future development, highlighting the company's proactive approach to risk management[5]. - The company will enhance its internal control system and risk management mechanisms to improve operational quality and compliance[75]. - The company anticipates that the implementation of the "4+7" volume-based procurement will further pressure the sales profit margins of its industrial sector[76]. - The company will continue to face challenges from stricter quality and environmental regulations, which may increase operational costs and impact profitability[76]. Business Operations - The company operates under the supervision of the Shaoxing State-owned Assets Supervision and Administration Commission, indicating a strong government oversight[9]. - The company has a diverse business scope, including traditional Chinese medicine, chemical raw materials, and medical devices, reflecting its broad market presence[15]. - The company operates 8 subsidiaries and 2 directly managed departments, covering pharmaceutical manufacturing, distribution, logistics, and health services[25]. - The company has established strategic partnerships with high-end research institutions, enhancing its capabilities in the health sector and new traditional Chinese medicine[32]. - The company is actively pursuing new product development, with 9 health products currently under research in collaboration with various research institutions[39]. Market Presence - The company is listed on the Shenzhen Stock Exchange, with the stock code 000705, enhancing its visibility in the capital market[12]. - The company expanded its retail network, adding nearly 4,000 new S2B accounts, resulting in a retail market coverage exceeding 50%[37]. - The domestic market accounted for 97.59% of total revenue, with international sales increasing by 43.55% to ¥68.76 million[44]. - The company's retail chain, Zhenyuan Pharmacy, includes over 100 stores, with one store achieving sales exceeding 100 million yuan in 2018[25]. Financial Management - The company has a dedicated investor relations team to facilitate communication with shareholders and stakeholders[13]. - The company's financial report is available on the designated website of the China Securities Regulatory Commission, ensuring accessibility for investors[14]. - The company reported a significant change in accounting policy, resulting in the reclassification of receivables, with accounts receivable and notes receivable totaling CNY 475,498,546.61 compared to the previous CNY 31,633,816.78 for notes receivable alone[89]. - The company has maintained its fixed assets at CNY 546,333,131.88, with no changes reported in the construction in progress amounting to CNY 6,754,321.38[89]. Environmental Responsibility - The company has actively participated in social responsibility initiatives, including community health services and charitable activities[109]. - The company reported no major environmental violations or issues related to pollution during the reporting period[111]. - Zhejiang Zhenyuan Pharmaceutical Co., Ltd. has established a wastewater treatment facility with a daily processing capacity of 2,000 tons, ensuring compliance with discharge standards[114]. - The company invested 20 million yuan in 2017 for the upgrade of air pollution control facilities, which are currently operating normally and comply with the latest emission standards[115]. Human Resources - The company employed a total of 1,861 staff, with 703 being technical personnel and 571 in production roles[141][142]. - The educational background of employees included 570 with a university degree or above, and 645 with a college diploma[142]. - The company plans to enhance its talent training system in 2019, focusing on improving management skills and professional knowledge[144]. - The total compensation for current directors and senior management amounts to 86,250,000[132]. Audit and Compliance - The company received a standard unqualified audit opinion from Tianjian Accounting Firm for the 2018 annual report[156]. - The audit committee held seven meetings during the reporting period to review the company's financial reports and internal control self-assessment[152]. - The supervisory board held seven meetings and found no irregularities in the company's operations or financial status during the reporting period[155]. - The company managed and utilized raised funds in accordance with regulations, with no harm to shareholder interests[156].

Financial Performance - Net profit attributable to shareholders rose by 243.96% to CNY 13,171,870.73 for the reporting period[5] - Operating revenue for the period was CNY 686,514,328.62, reflecting a 9.18% increase year-on-year[5] - Basic earnings per share increased by 242.61% to CNY 0.0394[6] - The company reported a net profit impact of CNY 567,700 from the sale of idle properties, with a transaction price of CNY 1,375,000 for two properties[15] - The company experienced a 202.72% increase in other income to CNY 5,903,338.57, mainly due to increased tax refunds[13] - The company reported a 68.07% decrease in minority shareholders' profit to CNY 530,885.80, primarily due to increased expenses from the establishment of a new traditional Chinese medicine clinic[13] Assets and Liabilities - Total assets increased by 4.45% to CNY 2,142,309,673.66 compared to the end of the previous year[5] - The company's net assets attributable to shareholders increased by 4.88% to CNY 1,435,740,357.07[5] - Inventory levels increased by 32.87% to CNY 477,356,328.05, attributed to rising prices of pharmaceutical raw materials[13] - Cash and cash equivalents decreased significantly by 743.77% to CNY -106,213,213.81, indicating a substantial reduction in cash flow from operations[14] - Other receivables rose by 184.15% to CNY 48,683,440.28, primarily due to increased sales reserve funds[13] - Prepayments increased by 89.16% to CNY 60,399,204.68 due to increased direct purchases from manufacturers[12] Cash Flow - Cash flow from operating activities showed a significant decline of 230.27% to -CNY 80,612,131.10[5] - The net cash flow from operating activities showed a substantial decline of 230.27%, resulting in a negative cash flow of CNY -80,612,131.10, compared to a positive CNY 61,882,821.34 in the previous year[14] Shareholder Information - The number of total shareholders at the end of the reporting period was 31,862[8] - The largest shareholder, Shaoxing Zhenyuan Health Industry Group Co., Ltd., holds 19.94% of shares, totaling 66,627,786 shares[8] Expenses - Research and development expenses rose by 60.24% to CNY 25,832,629.96, reflecting increased investment in product evaluation and development[13] - Total revenue for the third quarter increased significantly, driven by a 70.66% rise in sales expenses to CNY 251,061,388.99 compared to CNY 147,112,235.76 in the same period last year[13] - The construction in progress increased by 100.90% to CNY 13,569,197.60, reflecting higher investment in pharmaceutical projects[13] - Non-recurring gains and losses totaled CNY 11,228,961.87 for the reporting period[6]

Financial Performance - The company's operating revenue for the first half of 2018 was RMB 1,368,403,560.15, representing a 9.08% increase compared to RMB 1,254,455,714.21 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was RMB 42,789,621.64, a slight increase of 0.24% from RMB 42,685,622.95 year-on-year[21]. - The net profit after deducting non-recurring gains and losses decreased by 10.25% to RMB 34,375,539.45 from RMB 38,302,927.50 in the previous year[21]. - The company's total assets increased by 3.57% to RMB 2,124,386,342.46 from RMB 2,051,128,213.05 at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company rose by 4.74% to RMB 1,433,798,056.34 from RMB 1,368,925,404.70 at the end of the previous year[21]. - The company reported a negative net cash flow from operating activities of RMB -117,859,144.32, compared to RMB -7,121,050.28 in the same period last year[21]. - The basic and diluted earnings per share were both RMB 0.1281, reflecting a 0.23% increase from RMB 0.1278 in the previous year[21]. - The company reported a gross profit margin of 47.21% in the pharmaceutical manufacturing sector, up from 43.96% year-on-year, indicating improved profitability[45]. Revenue and Sales Growth - Zhejiang Zhenyuan Pharmaceutical achieved a total revenue of 304 million yuan in the first half of 2018, representing a year-on-year growth of 43.96%[35]. - The revenue from pharmaceutical preparations reached 208 million yuan, with a significant year-on-year increase of 110.25%, raising the sales proportion from 46.9% to 68.5%[35]. - The DTP sales amounted to 45.6 million yuan, showing a growth of 40% compared to the previous year[36]. - Online pharmacy sales increased by 104% year-on-year, indicating a strong shift towards e-commerce[36]. - The company opened 4 new retail stores and signed lease contracts for 6 additional new stores during the reporting period[37]. Research and Development - The company is advancing its new drug development projects, including the consistency evaluation of generic drugs and the quality research of new formulations[38]. - Research and development expenses increased by 46.66% to RMB 16,099,303.17 from RMB 10,977,161.91, primarily due to increased consistency evaluation costs[43]. Operational Strategy - The company is actively pursuing a dual-driven development strategy focusing on both pharmaceutical and health industries[38]. - The company has established 35 medicinal herb bases, covering an area of over 10,000 acres, to enhance production capacity[37]. - The company has initiated projects in health products and traditional Chinese medicine upgrades, aiming to enhance its market position[59]. - The company is expanding its chain stores and traditional Chinese medicine clinics to capture hospital prescription flows[59]. - The company has established deep collaborations with key universities to innovate its business model and foster new growth areas[59]. Financial Management - The company has implemented a comprehensive internal control management system to enhance operational efficiency and compliance with regulations[40]. - The total cash and cash equivalents at the end of the period decreased by 42.41% to RMB 116,555,287.74 from RMB 202,390,732.26, mainly due to reduced net cash flow from operating activities[44]. - The company's sales expenses surged by 75.55% to RMB 146,708,021.43 from RMB 83,569,203.17, driven by significant expansion in the sales network and team building[42]. - The accounts receivable decreased by 43.10% to RMB 17,999,247.47 from RMB 31,633,816.78, primarily due to reduced usage of customer payment notes[43]. - The company’s prepayments increased by 156.14% to RMB 81,783,461.34 from RMB 31,929,681.96, reflecting a rise in direct purchases from manufacturers[43]. Shareholder Information - The total number of shares before the recent change was 334,123,286, with 100% ownership structure[84]. - The number of restricted shares decreased by 55,184, resulting in a total of 52,139,647 restricted shares, representing 15.605% of total shares[83]. - The number of unrestricted shares increased by 55,184, leading to a total of 281,983,639 unrestricted shares, which accounts for 84.395% of total shares[84]. - The largest shareholder, Shaoxing Zhenyuan Health Industry Group Co., Ltd., holds 66,627,786 shares, representing 19.94% of total shares[87]. - The second-largest shareholder, Wang Meihua, holds 6,363,698 shares, accounting for 1.90% of total shares[88]. Environmental Compliance - The company has established a wastewater treatment facility with a daily processing capacity of 2,000 tons, ensuring compliance with discharge standards[77]. - An investment of 20 million yuan was made for the upgrade of air pollutant emission standards, with equipment adjustments starting in July 2018[78]. - The company has a dedicated environmental protection department to ensure compliance with environmental regulations and efficient operation of pollution control facilities[77]. - The company is classified as a key pollutant discharge unit by environmental protection authorities[75]. - There were no major environmental incidents or issues reported during the reporting period[77]. Tax and Incentives - The company’s subsidiary, ZheJiang ZhenYuan Pharmaceutical Co., Ltd., is recognized as a high-tech enterprise, benefiting from a reduced corporate income tax rate of 15% for the years 2017-2019[176]. - The company received a land use tax exemption of ¥971,382.98 for the first half of 2018, contributing to cost savings[178]. - The company’s corporate income tax rate is 25% for most entities, while specific subsidiaries benefit from lower rates due to tax incentives[175]. Accounting and Financial Reporting - The financial report for the first half of 2018 has not been audited[97]. - The company adheres to the accounting standards and ensures that its financial statements reflect its financial position, operating results, and cash flows accurately[103]. - The company has confirmed that there are no significant doubts regarding its ability to continue as a going concern for the next 12 months[102]. - The company’s financial statements are prepared based on the principle of continuous operation[101].

Financial Performance - The company's operating revenue for Q1 2018 was ¥708,577,457.30, representing a 13.51% increase compared to ¥624,238,757.68 in the same period last year[7]. - Net profit attributable to shareholders was ¥14,490,905.69, up 32.05% from ¥10,973,899.66 year-on-year[7]. - The basic earnings per share increased by 32.32% to ¥0.0434 from ¥0.0328 in the previous year[7]. - Net profit attributable to the parent company rose by 32.05% from CNY 10,973,899.66 to CNY 14,490,905.69, reflecting improved overall performance[14]. - Other income skyrocketed by 1221.98% from CNY 202,500.00 to CNY 2,677,012.40, mainly due to government subsidies received[14]. Assets and Shareholder Information - The total assets at the end of the reporting period were ¥2,156,968,180.27, reflecting a 5.16% increase from ¥2,051,128,213.05 at the end of the previous year[7]. - The net assets attributable to shareholders rose by 2.07% to ¥1,397,290,590.39 from ¥1,368,925,404.70[7]. - The top shareholder, Shaoxing Zhenyuan Health Industry Group Co., Ltd., holds 19.94% of the shares, totaling 66,627,786 shares[10]. - The total number of ordinary shareholders at the end of the reporting period was 32,646[10]. Cash Flow and Expenses - The company reported a net cash flow from operating activities of -¥51,074,451.29, a slight decrease of 3.15% compared to -¥49,516,579.48 in the same period last year[7]. - Cash paid for operating activities increased by 38.75% from CNY 79,026,664.69 to CNY 109,647,068.30, driven by increased marketing expenses[15]. - Cash flow from investing activities improved by 70.11%, with net cash flow of CNY -2,892,957.10 compared to CNY -9,679,533.47 in the previous period[15]. - Financial expenses decreased significantly by 89.14%, improving from CNY -2,382,433.52 to CNY -258,657.60 due to reduced foreign exchange losses[14]. Operational Changes - Prepayments increased by 157.22% from CNY 31,929,681.96 to CNY 82,128,232.24 due to increased direct purchases from manufacturers[14]. - Other receivables rose by 105.49% from CNY 17,133,173.48 to CNY 35,206,681.59, primarily due to increased sales reserves[14]. - Sales expenses surged by 100.55% from CNY 36,096,461.15 to CNY 72,391,863.05, attributed to rapid sales growth of Zhenyuan Pharmaceutical[14]. - Management expenses increased by 54.75% from CNY 30,551,896.51 to CNY 47,278,938.21, mainly due to higher R&D investments[14]. Compliance and Governance - The company did not engage in any repurchase transactions during the reporting period[12]. - The company reported no violations regarding external guarantees or non-operating fund occupation by major shareholders during the reporting period[23][24]. - The weighted average return on equity was 1.05%, an increase of 0.21 percentage points from 0.84%[7].

Financial Performance - The company's operating revenue for 2017 was CNY 2,577,916,046.90, representing a 5.65% increase compared to CNY 2,440,003,892.51 in 2016[19]. - Net profit attributable to shareholders for 2017 was CNY 61,082,490.36, a significant increase of 34.91% from CNY 45,275,577.95 in 2016[19]. - The basic earnings per share for 2017 was CNY 0.18, up 28.57% from CNY 0.14 in 2016[19]. - The total assets at the end of 2017 amounted to CNY 2,051,128,213.05, reflecting a 1.68% increase from CNY 2,017,140,314.96 at the end of 2016[19]. - The net cash flow from operating activities for 2017 was CNY 51,721,832.31, down 55.41% from CNY 115,993,133.87 in 2016[19]. - The company reported a weighted average return on equity of 4.59% for 2017, an increase of 1.06 percentage points from 3.53% in 2016[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 44,665,601.56, which is a 16.35% increase from CNY 38,388,934.06 in 2016[19]. - The company’s total equity attributable to shareholders at the end of 2017 was CNY 1,368,925,404.70, up 5.85% from CNY 1,293,309,710.08 at the end of 2016[19]. - The quarterly revenue for Q4 2017 was CNY 694,689,541.44, contributing to the overall annual growth[23]. - The company reported a non-recurring profit of CNY 16,416,888.80 in 2017, a significant increase from CNY 6,886,643.89 in 2016, representing a 138.8% growth[24]. Business Operations - The company’s main business includes the sale of traditional Chinese medicine, chemical raw materials, and medical devices, reflecting a diverse product range[16]. - The company operates in various segments including pharmaceutical commerce, pharmaceutical industry, pharmaceutical logistics, and health services, with a comprehensive sales network covering multiple distribution channels[26]. - The company has over 90 retail chain stores under the "Zhenyuan Hall" brand, which is recognized as one of China's top 100 pharmacy chains[27]. - The company has been recognized as a high-tech enterprise and has established several research and development centers, holding 20 invention patents and 2 design patents[32]. - The company has increased its intangible assets and construction in progress due to the transfer of the Fudi Environmental Protection site, indicating ongoing investment in infrastructure[28]. - The company is focused on expanding its production capacity and ensuring efficiency in its manufacturing processes to meet market demands[36]. Governance and Management - The company is controlled by Shaoxing State-owned Assets Supervision and Administration Commission, indicating a strong government backing[10]. - The board of directors and senior management have confirmed the authenticity and completeness of the financial report, reinforcing accountability[4]. - The company has a strong management team with extensive experience in the pharmaceutical industry, contributing to its strategic decision-making and operational efficiency[33]. - The company underwent a board restructuring on September 15, 2017, with multiple appointments and removals[139]. - The new chairman, Lü Jun, has extensive experience in government and management roles[140]. - The new general manager, Chai Jun, holds a master's degree in pharmaceutical management and has a background in quality control[141]. - The company aims to enhance its market position through strategic appointments and management changes[139]. Compliance and Reporting - The financial report emphasizes the importance of accurate and complete financial disclosures, ensuring transparency for investors[4]. - The annual report is published in the Securities Times, ensuring compliance with regulatory disclosure requirements[15]. - The company’s financial report is available on the designated website of the China Securities Regulatory Commission, enhancing accessibility for stakeholders[15]. - The company did not report any discrepancies between domestic and international accounting standards for the reporting period[20]. - The company has not reported any significant accounting errors requiring retrospective restatement during the reporting period[94]. - The company has included nine subsidiaries in its consolidated financial statements, reflecting its operational scope and market presence[190]. Environmental and Social Responsibility - The company has committed to ongoing investments in environmental protection, which are expected to rise significantly[81]. - The company strictly adheres to environmental protection laws and regulations, with no major environmental issues or incidents reported during the reporting period[117]. - The company has established a dedicated safety and environmental protection department to ensure the efficient and stable operation of environmental protection facilities[117]. - The company has actively participated in social responsibility initiatives, including community health services and charitable activities[113]. Future Outlook and Strategy - The company aims to transform from "Zhenyuan Manufacturing" to "Zhenyuan Intelligent Manufacturing" by enhancing product innovation and optimizing marketing strategies[75]. - The company plans to distribute a cash dividend of 0.20 yuan per 10 shares, totaling 6,682,465.72 yuan for the 2016 fiscal year[84]. - For the 2017 fiscal year, the company reported a net profit of 31,130,026.75 yuan but decided not to distribute any dividends, focusing instead on investments in the health sector[87]. - The company plans to enhance its talent training system to improve the skills of mid-to-senior management and new employees[152]. - The management has provided guidance for 2018, forecasting a revenue target of 1.5 billion RMB, which would represent a growth of 25%[146]. Shareholder Information - The total number of shares is 334,123,286, with 52,194,831 shares subject to restrictions and 281,928,455 unrestricted shares[122]. - The largest shareholder, Shaoxing Zhenyuan Health Industry Group, holds 19.94% of the shares, totaling 66,627,786 shares[126]. - The company reported that the top 10 unrestricted shareholders did not engage in any repurchase transactions during the reporting period[129]. - The controlling shareholder is a local state-owned entity, Shaoxing Zhenyuan Health Industry Group Co., Ltd., established in October 2014[130]. Financial Management - The company has established an independent financial management department, ensuring complete separation from the controlling shareholder[156]. - The company managed and utilized raised funds according to regulations, with no harm to shareholder interests reported[168]. - The company reported a continuous operating net profit of 62,949,918.32 CNY for the current year, an increase of 38.5% compared to the previous year's 45,414,483.13 CNY[93]. - The company’s cash dividend payout ratio for 2016 was 12.38% of net profit, while no dividends were paid in 2017[87].