证券代码：000813 证券简称：德展健康 公告编号：2019-035 德展大健康股份有限公司关于参加"2019 年新疆辖区上市 公司投资者集体接待日活动"的公告 本公司及其董事会全体成员保证信息披露内容的真实、准确、完整，没有 虚假记载、误导性陈述或重大遗漏。 德展大健康股份有限公司（以下简称"公司"）为便于广大投资者更深入全 面地了解公司情况、发展战略、经营状况、融资计划、股权激励、可持续发展等 投资者所关心的问题，公司定于 2019 年 7 月 26 日下午 15:00-17:30 参加由新疆 上市公司协会联合深圳市全景网络有限公司组织开展的"2019 年新疆辖区上市 公司投资者集体接待日活动"。现将有关事项公告如下： 本次集体接待日活动将在深圳市全景网络有限公司提供的网上平台，采取网 络 远 程 的 方 式 举 行 ， 投 资 者 可 以 登 录 " 全 景 · 路 演 天 下 " 网 站 （http://rs.p5w.net/）或关注微信公众号：全景财经（微信号：p5w2012），参 与公司本次投资者集体接待日活动，活动时间为 2019 年 7 月 26 日（星期五）15:00 至 17:30。 出 ...

Financial Performance - The company reported a total revenue of RMB 1.2 billion for the year 2018, representing a year-on-year growth of 15%[20] - The net profit attributable to shareholders was RMB 200 million, an increase of 10% compared to the previous year[20] - The company's operating revenue for 2018 was ¥3,290,827,592.18, representing a 48.22% increase compared to ¥2,220,294,818.62 in 2017[30] - The net profit attributable to shareholders for 2018 was ¥930,525,670.98, which is a 16.73% increase from ¥797,177,693.48 in 2017[30] - The net profit after deducting non-recurring gains and losses for 2018 was ¥924,031,064.44, up 17.14% from ¥788,841,122.62 in 2017[30] - The basic earnings per share for 2018 was ¥0.4162, reflecting a 17.04% increase from ¥0.3556 in 2017[30] - The total assets at the end of 2018 amounted to ¥5,921,638,285.93, a 15.23% increase from ¥5,138,977,267.94 at the end of 2017[30] - The net assets attributable to shareholders at the end of 2018 were ¥5,281,485,855.33, which is a 16.19% increase from ¥4,545,411,997.30 at the end of 2017[30] - The company reported a net cash flow from operating activities of ¥379,780,870.11 in 2018, a slight decrease of 1.26% from ¥384,636,714.90 in 2017[30] - The company achieved a net profit of approximately ¥930.53 million for the year 2018, with an undistributed profit balance of ¥3.80 billion as of December 31, 2018[127] Market Expansion and Strategy - User data indicated a growth in active users by 25%, reaching a total of 5 million users by the end of 2018[20] - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[20] - The company has set a performance guidance for 2019, aiming for a revenue growth of 20% and a net profit margin of 15%[20] - The company plans to leverage the opportunities from volume-based procurement to enhance its business and develop new products in the cerebrovascular field[114] - The company aims to increase its market share in public hospitals and expand its presence in the endocrine market in 2019[116] - The company intends to accelerate its capital operations and implement acquisition strategies for rapid expansion in various therapeutic areas[114] Research and Development - The company has allocated RMB 100 million for research and development in new technologies for the upcoming fiscal year[20] - The company plans to continue its research and development efforts, focusing on consistency evaluations for additional products[52] - The total R&D investment amounted to ¥86,683,891.04, representing a 58.62% increase compared to ¥54,649,653.49 in the previous year[76] - The proportion of R&D investment to operating revenue increased to 2.63% from 2.46%, a change of 0.17%[76] - The company has established two research institutions focused on technological innovation and product development, achieving several successful domestic exclusive products[44] Product Performance - The main business of the company is the research, production, and sales of pharmaceuticals, with its core product "Aler" (Atorvastatin Calcium Tablets) ranking first among domestic lipid-lowering drugs[40] - "Aler" has achieved a market share of approximately 9% in the lipid-lowering drug sector and is the first domestic product to pass the consistency evaluation for Atorvastatin Calcium[44] - The company's production capacity for "Aler" has significantly increased following the commissioning of projects in Tianjin Wuqing and Tongzhou Xiji[40] - The gross profit margin for pharmaceutical sales was 99.82%, with a 48.44% increase in sales compared to the previous year[57] - The company's main product, "Aler," sold 191 million boxes during the year, with a 13.69% increase in inventory compared to the previous year[52] Risk Management - The company has identified potential risks in regulatory changes and market competition, with strategies in place to mitigate these risks[20] - The company faces market and policy risks due to ongoing medical reforms and stricter regulations, which may impact production and operations[118] - The company recognizes the risks associated with new business ventures, particularly in the industrial hemp sector, and will proceed cautiously[123] Dividend Policy - The board has decided not to distribute cash dividends for the year, opting to reinvest profits into business expansion[20] - The company will not distribute profits for 2018, as it aims to cover previous losses and adapt to significant industry changes due to policy reforms[128] - The company has not distributed cash dividends for three consecutive years (2016-2018), with net profits fully offsetting previous losses[133] - Future cash dividends will be considered based on the company's operational situation and funding needs, ensuring alignment with shareholder interests[133] Corporate Governance - The company has made long-term commitments to avoid direct or indirect competition with its subsidiaries, ensuring independence in operations and management[147] - The company guarantees the independence of its operations, assets, and finances from its controlling shareholders, with specific measures to maintain this separation[149] - The company has not reported any significant changes in the feasibility of its investment projects[101] Compliance and Regulatory Issues - The company has received a warning from the Beijing Food and Drug Administration regarding compliance issues, which has been rectified prior to the warning being issued[158] - The company emphasizes the importance of strict quality control in response to new regulations and standards in the pharmaceutical industry[122]

Financial Performance - The company's operating revenue for Q1 2019 was ¥480,934,229.19, a decrease of 38.92% compared to ¥787,375,642.93 in the same period last year[9]. - Net profit attributable to shareholders was ¥120,802,841.01, down 32.09% from ¥177,880,864.50 year-on-year[9]. - Basic earnings per share decreased by 31.36% to ¥0.0545 from ¥0.0794 in the same period last year[9]. - Total operating revenue for the first quarter was CNY 480,934,229.19, a decrease of approximately 38.8% compared to CNY 787,375,642.93 in the same period last year[65]. - Net profit for the first quarter was CNY 120,802,841.01, a decline of 32.2% compared to CNY 177,880,864.50 in the previous year[68]. - The total comprehensive income for the period was -4,781,453.42 CNY, compared to 1,799,966.18 CNY in the previous period[79]. - The company reported a net loss of -4,781,453.42 CNY for the period, compared to a net profit of 1,799,966.18 CNY in the previous period[79]. Cash Flow and Assets - The net cash flow from operating activities increased significantly to ¥385,741,120.49, a rise of 49,575.07% compared to ¥776,528.55 in the previous year[9]. - The cash flow from operating activities showed a remarkable increase of 49,575.07%, reaching 385,741,120.49 RMB, mainly due to the collection of accounts receivable[25]. - As of March 31, 2019, the company's total current assets amounted to ¥5,018,832,866.28, an increase from ¥4,758,447,495.18 at the end of the previous year[45]. - The company's cash and cash equivalents decreased from ¥1,444,695,850.79 to ¥1,041,028,620.36 during the same period[45]. - The total cash inflow from operating activities was 951,154,755.35 CNY, compared to 661,543,422.37 CNY in the previous period[83]. - The total cash outflow from operating activities was 565,413,634.86 CNY, down from 660,766,893.82 CNY in the previous period[83]. - The ending balance of cash and cash equivalents was 619,216,079.95, down from 1,230,396,714.59 in the prior period[93]. - The company reported a decrease in cash and cash equivalents by 94,447,418.31 during the period[93]. Shareholder Information - The top ten shareholders held a significant portion of shares, with the largest shareholder holding 30.20%[13]. - The company completed its share repurchase plan, utilizing a total of 200 million RMB to buy back shares at a price not exceeding 12 RMB per share[26]. - The company repurchased a total of 23,612,228 shares, accounting for 1.0534% of the total share capital before the repurchase, with a total payment of approximately ¥200 million[33]. - The repurchased shares will be used for employee stock ownership plans or equity incentive plans, subject to board authorization[33]. Assets and Liabilities - Total assets at the end of the reporting period were ¥5,762,403,637.76, a decrease of 2.69% from ¥5,921,638,285.93 at the end of the previous year[9]. - The company's total assets as of March 31, 2019, were ¥5,762,403,637.76, compared to ¥5,921,638,285.93 at the end of the previous year[54]. - Total liabilities decreased from ¥640,152,430.60 to ¥365,661,202.00 during the same period[51]. - The company's total equity increased from ¥5,281,485,855.33 to ¥5,396,742,435.76[54]. - The company has no overdue commitments or securities investments during the reporting period[34][35]. Operational Developments - The company reported a significant increase in prepayments, which rose by 198.88% to 31,544,069.20 RMB due to increased technology development fees and project payments[25]. - Other receivables surged by 10,767.16% to 100,062,075.53 RMB, primarily due to payments made for cooperation earnest money[25]. - The company experienced a 47.09% increase in construction in progress, amounting to 81,024,345.59 RMB, attributed to increased investment in subsidiary production lines[25]. - The company’s subsidiary, Jialin Pharmaceutical, received a GMP certificate, allowing its new production base to commence operations[27]. - The company signed a strategic cooperation framework agreement with Hanma Group for equity acquisition and collaboration in research[27]. Financial Adjustments - The company reported a significant increase in current assets, totaling ¥2,076,909,614.31, an increase of ¥400,000,000.00[106]. - The company adjusted financial reporting, reclassifying certain financial products, impacting non-current assets by ¥400,000,000.00[105]. - The company has adjusted financial products previously classified as other current assets to trading financial assets under new financial instrument standards[113]. - The company has not applied the retrospective adjustment for the new financial instrument and lease standards[114]. Management and Governance - The chairman of the board is Zhang Yong, and the report was released on April 25, 2019[117]. - The first quarter report has not been audited[116]. - The report indicates that the company is focused on health and wellness sectors[115].

Financial Performance - Operating revenue for the reporting period reached CNY 986,089,744.94, a 73.88% increase year-on-year [8] - Net profit attributable to shareholders increased by 38.87% to CNY 286,390,150.79 for the reporting period [8] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 284,629,591.43, up 38.38% year-on-year [8] - Basic earnings per share rose by 39.13% to CNY 0.1280 [8] - The weighted average return on equity was 5.62%, an increase of 0.81% compared to the previous year [8] Asset and Shareholder Information - Total assets increased by 13.87% to CNY 5,851,977,645.74 compared to the end of the previous year [8] - The total number of shareholders at the end of the reporting period was 17,393 [12] - The top ten shareholders held a combined 73.62% of the company's shares, with the largest shareholder owning 30.20% [12] Cash Flow and Expenses - Cash flow from operating activities decreased by 46.08% to CNY 225,776,379.62 year-to-date [8] - The net cash flow from operating activities decreased by 46.08% to ¥225,776,379.62 from ¥418,689,199.10, mainly due to increased promotional expenses [16] - Research and development expenses surged by 183.42% to ¥64,101,881.59 from ¥22,617,100.94, reflecting increased investment in R&D [16] - The company reported a 331.02% increase in selling expenses, totaling ¥1,400,428,764.76 compared to ¥324,908,549.84 in the previous year [16] Share Repurchase and Financial Management - The company repurchased a total of 15,450,767 shares, accounting for 0.6893% of the total share capital, with a total expenditure of ¥124,300,981.86 [18] - The company plans to use up to ¥200 million for share repurchase within six months from the approval date [18] - The total amount of entrusted financial management reached ¥175,750,602.86, with ¥75,000,000 in bank financial products and ¥100,750,602.86 in broker financial products [24] - There are no overdue amounts or uncollectible principal expected from entrusted financial management [24] Receivables and Prepayments - Accounts receivable increased by 33.53% to ¥2,636,110,781.12 from ¥1,974,136,774.52, primarily due to sales growth and the impact of the two-invoice system [16] - Prepayments increased by 66.05% to ¥32,725,685.07 from ¥19,708,878.73, mainly due to increased prepayments for R&D and conference expenses [16] - Other receivables decreased by 50.76% to ¥1,580,953.67 from ¥3,211,035.35, primarily due to the recovery of interest from the previous period [16] Compliance and Governance - The company has not reported any overdue commitments from actual controllers, shareholders, or related parties during the reporting period [19] - The company did not engage in any derivative investments during the reporting period [24] - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period [27] - The company did not conduct any research, communication, or interview activities during the reporting period [25] - There were no instances of illegal external guarantees during the reporting period [26]

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 1,661,003,854.16, representing a 108.86% increase compared to CNY 795,269,667.18 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was CNY 443,722,311.12, a 3.83% increase from CNY 427,347,813.67 year-on-year[18]. - The net profit after deducting non-recurring gains and losses was CNY 440,490,401.11, up 4.11% from CNY 423,103,479.11 in the previous year[18]. - The basic earnings per share for the reporting period was CNY 0.1980, a 3.83% increase from CNY 0.1907 in the same period last year[18]. - The diluted earnings per share also stood at CNY 0.1980, reflecting the same growth of 3.83% year-on-year[18]. - The total operating revenue for the first half of 2018 was CNY 1,661,003,854.16, a significant increase from CNY 795,269,667.18 in the same period of 2017, representing a growth of approximately 109.1%[136]. - The net profit for the first half of 2018 was CNY 443,722,311.12, compared to CNY 426,054,842.99 in the previous year, reflecting a slight increase of approximately 4.1%[136]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 5,546,290,223.38, an increase of 7.93% from CNY 5,138,977,267.94 at the end of the previous year[18]. - The net assets attributable to shareholders of the listed company increased by 9.76% to CNY 4,989,134,308.42, compared to CNY 4,545,411,997.30 at the end of the previous year[18]. - The total assets of the company amounted to 554,629.02 million yuan, reflecting a growth of 7.93% year-on-year[42]. - The total liabilities decreased from CNY 593,565,270.64 to CNY 557,155,914.96, a reduction of approximately 6.1%[129]. - The owner's equity increased from CNY 4,545,411,997.30 to CNY 4,989,134,308.42, representing a growth of about 9.7%[129]. Cash Flow - The net cash flow from operating activities decreased by 52.03% to CNY 137,758,254.36, down from CNY 287,161,217.54 in the same period last year[18]. - The company's net cash and cash equivalents increased by CNY 277,742,230.11, although this represented a decline of 34.98% compared to the previous period[45]. - The cash flow from operating activities shows a positive trend, with total cash inflows significantly exceeding outflows[148]. - The cash flow from investment activities has a net outflow of -116,678,512.80 yuan, indicating ongoing investments despite previous higher expenditures[148]. Market Position and Products - The main product, Atorvastatin Calcium Tablets, ranks second in the atorvastatin category and first among domestic lipid-lowering drugs, with a market share of approximately 9%[30]. - The company’s subsidiary, Jialin Pharmaceutical, has maintained its leading position in the domestic lipid-lowering market for several consecutive years, with advanced product quality and production technology[25]. - Jialin Pharmaceutical's Atorvastatin Calcium Tablets have passed the consistency evaluation, enhancing their competitive edge against imported drugs and improving market sales potential[27]. - The domestic lipid-lowering market remains stable, with statins holding over 90% market share, indicating a strong demand for the company's products[26]. Research and Development - Research and development expenses surged to CNY 54,749,621.43, marking a significant increase of 510.56% from CNY 8,967,127.50, primarily due to enhanced investment in ischemic stroke treatment research[44]. - The company has established two pharmaceutical research institutions focused on technological innovation and product development, achieving multiple successful domestic exclusive products[31]. - The company has established partnerships with various academic institutions for innovative drug development, including collaborations with Tsinghua University and the Chinese Academy of Medical Sciences[41]. Corporate Governance and Compliance - The company plans not to distribute cash dividends or issue bonus shares for this reporting period[5]. - The company is committed to improving R&D levels and managing projects scientifically to mitigate risks associated with drug development[59]. - The company is currently in compliance with all commitments made during the restructuring process[68]. - The company will ensure that senior management is exclusively employed by the company and not hold positions in related enterprises[70]. Environmental Compliance - 嘉林药业废水处理采用UASB厌氧反应器和MBR膜生物反应器，确保污水水质合格后排入市政管网[94]. - 嘉林药业锅炉废气中氮氧化物排放量为0.39吨，符合低氮排放标准[95]. - 嘉林药业拥有完整的环境影响评价和污水排入许可证，确保环保合规[97]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 18,862[110]. - The largest shareholder, Meilin Holdings Group, holds 30.20% of the shares, with a total of 676,825,475 shares[110]. - The company has a total share count of 2,241,481,800, with 51.79% being limited sale condition shares[108]. Risks and Challenges - The company faces market and policy risks due to ongoing pharmaceutical reforms and stricter regulations, which may impact production and management[58]. - Rising production costs due to increased prices of raw materials, logistics, and labor are a concern for the company's operational expenses[60]. - Significant investment in new drug research and development is required annually, leading to high uncertainty and potential project failure risks[59].

Financial Performance - The company's operating revenue for 2017 was ¥2,220,294,818, representing a 53.87% increase compared to ¥1,442,998,625 in 2016[20]. - Net profit attributable to shareholders for 2017 was ¥797,177,693.48, a 20.48% increase from ¥661,671,880.16 in 2016[20]. - The net cash flow from operating activities increased by 46.61% to ¥384,636,714.90 in 2017 from ¥262,356,181.05 in 2016[20]. - Total assets at the end of 2017 reached ¥5,138,977,267, a 30.86% increase from ¥3,926,931,218 at the end of 2016[20]. - The net assets attributable to shareholders increased by 21.10% to ¥4,545,411,997 in 2017 from ¥3,753,305,344 in 2016[20]. - Basic earnings per share for 2017 was ¥0.3556, reflecting a 20.46% increase compared to ¥0.2952 in 2016[20]. - The weighted average return on equity for 2017 was 19.20%, down from 35.71% in 2016, indicating a decline of 16.51%[20]. - The company reported a total of ¥857,925,156.75 in operating revenue for Q4 2017, the highest quarterly revenue for the year[24]. - The company experienced a net profit of ¥163,604,731.36 in Q4 2017, contributing to the overall annual profit growth[25]. - In 2017, the company achieved a total revenue of ¥2,220,294,818.62, representing a year-on-year growth of 53.87%[44]. - The net profit attributable to shareholders reached ¥79,717.77 million, an increase of 20.48% compared to the previous year[44]. Asset Restructuring - Dezhang Health reported a significant asset restructuring with a total value of 757,021.10 million RMB, involving the exchange of assets with Meilin Holdings[11]. - The total amount of supporting funds raised during the asset restructuring is capped at 150,948.88 million RMB[11]. - The company underwent significant asset restructuring in 2016, transitioning from textile and mining industries to the pharmaceutical sector, which has influenced its financial performance[20]. - The company has a lock-up period of 36 months for shares obtained through major asset restructuring, which will not be transferred during this period[95]. - After the first year of the major asset restructuring, 50% of the shares will be released from lock-up upon fulfilling profit compensation obligations[97]. - In the second year, an additional 25% of the shares will be released from lock-up after meeting profit compensation obligations[97]. - The remaining 25% of the shares will be released from lock-up after all profit compensation obligations are fulfilled[97]. - The company has a structured plan for the gradual release of shares post-restructuring based on performance[97]. Research and Development - The main business of the company is the research, production, and sales of pharmaceuticals, with a focus on cardiovascular drugs, including core product "Alo" (Atorvastatin Calcium Tablets), which ranks among the top three in the lipid-lowering market in 2017[28]. - The company has increased R&D investment, leading to improved operational efficiency and profitability, while also expanding its influence in the industry[29]. - The company has two pharmaceutical R&D institutions, focusing on product upgrades and new technology development, with over 100 new drug varieties completed or in development[34]. - Research and development investment increased by 5.45% to ¥54,649,653.49 in 2017, while the proportion of R&D investment to operating income decreased to 2.46%[60]. - The number of R&D personnel increased by 61.45% to 134, enhancing the company's research capabilities[60]. - The company has initiated clinical trials for several new drugs, including a new antihypertensive drug and an anti-tumor supportive medication[58]. Market Position and Strategy - The company has maintained a market share of approximately 9% for "Alo," positioning it as a leading domestic lipid-lowering drug[32]. - The pharmaceutical industry in China is experiencing growth due to economic development, population aging, and healthcare system improvements, presenting both opportunities and challenges[30]. - The company has established long-term partnerships with various hospitals and experts for clinical research, enhancing its R&D capabilities[34]. - The company plans to focus on brand management and academic promotion for its key product, Alale, particularly in the cardiovascular and cerebrovascular disease sectors, with increased market resource investment[79]. - The company aims to enhance product strategy and academic image by implementing refined management and tailored action plans for different regions[80]. - The company anticipates that the pharmaceutical industry will undergo significant changes due to supply-side reforms, with a projected capacity reduction exceeding 50% in the chemical drug sector post-2018[79]. - The company has identified the aging population in China as a major opportunity for growth in pharmaceutical demand, particularly for generic drugs[79]. - The company plans to transfer existing business to its wholly-owned subsidiary, Beijing Jialin Huikang Pharmaceutical Co., Ltd., to ensure rapid growth while maintaining compliance[80]. Financial Management and Governance - The financial report is guaranteed to be true, accurate, and complete by the company’s management[3]. - The company has committed to increasing resource investment in the promotion of statins, addressing the low treatment rates among new patients[79]. - The company has a three-year shareholder return plan in place to ensure a stable dividend policy in the future[87]. - The company recognizes the need for significant investment in drug research and development, which poses uncertainties in future growth[82]. - The company will assess the possibility of cash dividends from its subsidiary, Jialin Pharmaceutical, based on its operational performance and funding needs[90]. - The company has fulfilled all commitments made by its actual controllers and shareholders during the reporting period[95]. - The company is committed to avoiding unnecessary related party transactions and ensuring fairness and transparency in transactions[95]. - The company has established a complete business system with independent assets, personnel, and capabilities to ensure continuous operations[102]. - The company has established a comprehensive governance structure, including a board of directors with 9 members and 3 independent directors[188]. - The company has implemented various training programs, including safety management and market marketing management, to enhance employee skills[182]. Shareholder Information - The company’s total share capital as of December 31, 2016, was 1,494,321,200 shares[92]. - The company’s shareholding structure showed that 73.73% of shares were subject to restrictions before the changes, which decreased to 51.79% after the capital increase[144]. - The company’s total unrestricted shares increased to 1,080,570,000, representing 48.21% of the total shares post-capital increase[144]. - The company has a total of 292,616,244 shares held by Shanghai Yueye, with 219,462,183 shares released from lock-up on October 19, 2017, and the remaining shares to be released based on performance commitments in 2018 and 2019[149]. - The company has issued new shares for asset acquisitions, with a total of 12,688,654 shares held by Quan Wei, 9,516,490 shares released from lock-up on October 19, 2017, and the rest to be released in 2018 and 2019 based on performance commitments[151]. Compliance and Risk Management - The company has established a legal commitment to ensure independence in operations, assets, finance, and business aspects post-restructuring[100]. - The commitment to avoid related party transactions includes ensuring fair market pricing in dealings with Tianshan Textile[99]. - The company has outlined specific measures to ensure compliance with laws and regulations in its operations[100]. - The company has not faced any administrative penalties related to unregistered properties as of the date of the commitment letter[103]. - The company has not experienced any major accounting errors requiring retrospective restatement during the reporting period[111]. - The company has not engaged in any related party transactions during the reporting period[119]. - The company has not faced any situations that could lead to suspension or termination of listing[115].

Financial Performance - The company's operating revenue for Q1 2018 was ¥787,375,642.93, representing a 125.04% increase compared to ¥349,882,314.39 in the same period last year[8] - Net profit attributable to shareholders was ¥177,880,864.50, up 9.23% from ¥162,846,842.28 year-on-year[8] - The net profit after deducting non-recurring gains and losses was ¥176,120,093.11, reflecting a 9.01% increase from ¥161,557,656.69 in the previous year[8] - Basic earnings per share were ¥0.0794, a 9.22% increase compared to ¥0.0727 in the previous year[8] - Total assets at the end of the reporting period were ¥5,403,235,524.39, an increase of 5.14% from the previous year's end[8] - Net assets attributable to shareholders increased by 3.91% to ¥4,723,292,861.80 from ¥4,545,411,997.30 at the end of the previous year[8] Cash Flow - The net cash flow from operating activities decreased significantly to ¥776,528.55, down 97.52% from ¥31,286,342.28 in the same period last year[8] - The net cash flow from operating activities dropped by 97.52% to CNY 776,528.55 from CNY 31,286,342.28, mainly due to increased payments for product promotion[16] - The company reported a net cash flow from investment activities of CNY 164,001,613.82, a significant improvement from a negative CNY 40,761,967.03 in the previous year, attributed to the maturity of financial products[16] Shareholder Information - The top shareholder, Meilin Holdings Group, holds 30.20% of shares, amounting to 676,825,475 shares, with 554,098,671 shares pledged[12] - The total number of ordinary shareholders at the end of the reporting period was 21,701[12] - The company plans to repurchase up to 22.4 million shares within three months, as announced on February 6, 2018[17] - The company disclosed that a major shareholder plans to reduce their holdings by up to 67,244,454 shares, representing 3% of the total share capital, between April 24 and July 24, 2018[18] Expenses and Assets - Prepayments increased by 236.25% to CNY 66,272,052.05 from CNY 19,708,878.73, primarily due to increased payments for materials and equipment[16] - Sales expenses surged by 575.06% to CNY 448,382,377.69 from CNY 66,421,308.44, mainly due to increased product promotion costs and the two-invoice system[16] - Other current assets decreased by 67.78% to CNY 92,519,356.13 from CNY 287,159,181.08, primarily due to the maturity of financial products[16] Compliance and Investments - The company has not reported any non-compliance issues regarding external guarantees or non-operational fund occupation by major shareholders during the reporting period[19][23][24] - The company has not engaged in any securities or derivative investments during the reporting period[20][21] - The company reported a government subsidy of ¥896,000.00 during the reporting period[9]

Financial Performance - Total assets increased by 16.57% to CNY 4,577,691,822.01 compared to the end of the previous year[8] - Operating revenue for the reporting period reached CNY 567,099,994.69, a year-on-year increase of 41.06%[8] - Net profit attributable to shareholders was CNY 206,225,148.45, reflecting a growth of 5.35% compared to the same period last year[8] - The net profit after deducting non-recurring gains and losses was CNY 205,687,078.47, up by 3.21% year-on-year[8] - The weighted average return on equity decreased to 4.81%, down by 5.36% compared to the previous year[8] - The company reported a net cash flow from operating activities of CNY 418,689,199.10, an increase of 36.39% year-on-year[8] - Basic earnings per share decreased by 38.30% to CNY 0.0920 due to an increase in total share capital[8] - Investment income grew by 84.34% to ¥3,349,945.20, primarily due to increased financial investment returns[17] - The company’s net profit increased by 30.58% to ¥2,705,342,594.31, reflecting strong operational performance[17] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 22,901[12] - The top shareholder, Meilin Holdings Group, holds 30.11% of the shares, totaling 674,816,625 shares[13] Asset and Liability Management - Accounts receivable increased by 42.87% to ¥1,092,034,359.64, primarily due to sales growth and the impact of the two-invoice system[17] - Prepayments surged by 204.21% to ¥46,360,521.68, mainly due to increased advance payments for materials and equipment[17] - Fixed assets rose by 65.04% to ¥305,163,239.19, attributed to the completion of subsidiaries' factories and production lines[17] - Deferred tax assets decreased by 42.50% to ¥6,520,397.89, mainly due to the reversal of accrued expenses[17] - The capital reserve decreased by 51.27% to ¥710,241,251.34, due to the transfer of capital reserves to increase share capital[17] Government and Regulatory Compliance - The company received government subsidies amounting to CNY 847,210.68 during the reporting period[10] - The company has committed to avoid or reduce related party transactions with Tianshan Textile and its subsidiaries, ensuring transactions are conducted at market prices[24] - The commitments made by the company will remain legally binding until the major asset restructuring is approved by the China Securities Regulatory Commission[24] - The company will ensure that any related party transactions are disclosed in accordance with the Shenzhen Stock Exchange's regulations[24] Corporate Governance and Independence - The company is committed to maintaining the independence of its operations, ensuring that its management, assets, finances, and business activities remain separate from those of its controlling shareholders[25] - The company guarantees the establishment of an independent financial department and accounting system, ensuring compliance with legal and regulatory requirements[26] - The company has established a clear governance structure to ensure that its board and management operate independently and in accordance with legal requirements[26] - The company has undertaken measures to ensure that its financial personnel do not hold positions in related entities, maintaining financial independence[26] Restructuring and Future Commitments - 嘉林药业's restructuring will result in it becoming a subsidiary of 美林控股集团有限公司, which will be the controlling shareholder of the listed company[28] - The company reported a significant focus on restructuring and ensuring compliance with dividend policies post-reorganization[29] - There is a commitment from major stakeholders to respect the control position of the company following the successful listing of its subsidiary[29] - The company has committed to a 36-month lock-up period for newly issued shares following the asset restructuring[30] Operational Activities - 嘉林药业 has committed to resolving issues related to unregistered properties and expects to complete the registration by the end of 2017[27] - 嘉林药业 has adjusted the auxiliary formula for its product 阿乐 (Atorvastatin Calcium Tablets) to improve drug quality, which was previously approved by the regulatory authority[28] - 嘉林药业 has obtained a clinical trial approval from the National Medical Products Administration on April 21, 2015, and has initiated human bioequivalence trials[28] - The company has conducted institutional research and communication activities during the reporting period[33] Miscellaneous - The company has no securities or derivative investments reported during the period[31][32] - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[35] - The company has not engaged in any significant asset restructuring or external guarantees that would violate regulations[34] - There were no reported activities related to targeted poverty alleviation during the third quarter[36] - The management plan for employee stock ownership is being strictly adhered to[30]

Financial Performance - The company's operating revenue for the first half of 2017 was approximately ¥795.27 million, representing a 21.72% increase compared to ¥653.37 million in the same period last year[18]. - The net profit attributable to shareholders of the listed company reached approximately ¥427.35 million, up 27.92% from ¥334.07 million year-on-year[18]. - The net cash flow from operating activities was approximately ¥287.16 million, showing a significant increase of 73.93% compared to ¥165.10 million in the previous year[18]. - The total assets at the end of the reporting period were approximately ¥4.39 billion, an increase of 11.89% from ¥3.93 billion at the end of the previous year[18]. - The net assets attributable to shareholders of the listed company were approximately ¥4.18 billion, reflecting an increase of 11.39% from ¥3.75 billion at the end of the previous year[18]. - The basic earnings per share decreased by 25.07% to ¥0.1907 from ¥0.2545 in the same period last year[18]. - The weighted average return on net assets was 10.77%, down 9.34% from 20.11% in the previous year[18]. - Total revenue for the pharmaceutical industry reached ¥794,504,511.64, an increase of 22.33% year-on-year, with a gross margin of 85.84%[37]. - The total profit amounted to ¥502,584,125.24, marking a 31.29% increase, attributed to sales growth and effective cost management[35]. - Domestic sales reached ¥794,097,326.68, with a year-on-year increase of 22.44% and a gross margin of 85.91%[38]. Expenses and Costs - Gross profit margin improved, with operating costs at CNY 112,930,394.58, a slight increase of 1.74% year-on-year[34]. - Management expenses surged by 59.36% to CNY 60,790,857.20, mainly due to increased employee compensation, depreciation, and utility costs[34]. - Total operating costs increased to CNY 297,443,975.84, up from CNY 272,886,893.26, reflecting a rise of 9.0%[124]. - Tax expenses for the first half of 2017 were CNY 76,529,282.25, compared to CNY 49,550,640.05 in the previous year, indicating a rise of 54.4%[124]. - Sales expenses decreased slightly to CNY 107,106,888.36 from CNY 109,952,028.85, a reduction of 2.7%[124]. Cash Flow and Liquidity - The net cash flow from operating activities was ¥287,161,217.54, an increase of 73.93% due to sales growth and effective cost control[35]. - The net increase in cash and cash equivalents was ¥427,163,126.39, representing a remarkable growth of 1,735.43% driven by sales growth and the maturity of financial products[35]. - Cash and cash equivalents at the end of the period reached CNY 2,112,761,068.02, compared to CNY 138,813,515.16 at the end of the previous period[133]. - The company reported a total cash inflow from financing activities of CNY 1,600,000.00, contrasting with a cash outflow of CNY 124,968,000.00 in the previous period[133]. - The company’s cash flow from operating activities showed a significant increase, indicating improved operational efficiency and revenue generation[132]. Investment and Research - Research and development expenses amounted to ¥8,967,127.50, reflecting an increase of 11.70% compared to the previous period[35]. - The company plans to continue investing in research and development to support future growth, despite the inherent uncertainties in drug development[49]. - The company is focused on the consistency evaluation of generic drugs and aims to complete the required studies by the end of 2018[31]. Corporate Governance and Compliance - The company does not plan to distribute cash dividends or issue bonus shares for this reporting period[5]. - The company has committed to avoiding unnecessary related transactions with Xinjiang Tianshan Wool Textile Co., ensuring fairness and transparency in related transactions[54]. - The company has established a lock-up period for newly issued shares, which will extend if certain stock price conditions are not met[55]. - The company is under investigation for potential false disclosures, which may affect share transfer commitments[56]. - The company has committed to maintaining independence in personnel, assets, finance, organization, and business operations post-restructuring[59]. Market and Operational Risks - The company faced risks related to market and policy changes, including stricter regulations and potential price reductions in the pharmaceutical sector[49]. - The company faces increased risks in quality control due to new standards and regulations such as the revised GMP and the new National Pharmacopoeia, which impose stricter requirements across all stages from R&D to market launch[50]. - Rising production costs are a concern, driven by increases in raw material prices, logistics costs, and labor capital[50]. - The company plans to enhance internal management and efficiency, increase professional promotion efforts, and expand its product line to mitigate operational risks[50]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 24,777[98]. - The largest shareholder, Meilin Holdings Group, holds 30.06% of the shares, amounting to 673,883,830 shares[98]. - The second-largest shareholder, Shanghai Yueye Equity Investment Management Partnership, holds 19.58% of the shares, totaling 438,924,300 shares[98]. - The company has not undergone any changes in its controlling shareholder during the reporting period[101]. Financial Reporting and Audit - The half-year financial report was not audited[64]. - The financial statements for the first half of 2017 were approved by the board on August 18, 2017, reflecting the company's financial position as of June 30, 2017[159]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the financial reports accurately reflect its financial status and results[159].

Financial Performance - The company reported a total revenue of ¥1,442,998,625 for 2016, representing a 22.36% increase compared to ¥1,179,271,441 in 2015[19]. - Net profit attributable to shareholders was ¥661,671,880, reflecting a 29.94% increase from ¥509,204,626 in the previous year[19]. - The company reported a basic earnings per share of ¥0.67 for 2016, a 15.52% increase from ¥0.58 in 2015[19]. - The net cash flow from operating activities was ¥262,356,181, showing a significant increase of 147.03% compared to ¥106,202,944 in 2015[19]. - The company reported a total revenue of 1,442.99 million CNY, representing a year-on-year growth of 22.36%[42]. - The net profit attributable to shareholders reached 661.67 million CNY, an increase of 29.94% compared to the previous year[42]. - The total assets of the company amounted to 3,926.93 million CNY, reflecting a growth of 125.8% year-on-year[42]. - The company reported a government subsidy of ¥2,119,345.30 in 2016, down from ¥2,302,730.00 in 2015[24]. - The company reported a non-operating income of ¥150,767.56 in 2016, a significant increase from ¥13,371.91 in 2015[24]. Asset Restructuring - The company is undergoing a significant asset restructuring involving a total asset exchange valued at approximately 79,875 million RMB with Meilin Holdings[10]. - The company completed a major asset restructuring in 2016, transitioning from textile and mining industries to the pharmaceutical sector by acquiring 100% equity of Jialin Pharmaceutical[16]. - The company completed a major asset restructuring, resulting in a significant change in business and asset composition, with the reverse acquisition completed on September 30, 2016[121]. - The company completed the transfer of assets and liabilities to Kaidi Textile and finalized the related business registration changes by September 28, 2016[157]. - The company issued a total of 875,168,898 shares during the reverse acquisition, increasing the registered capital to CNY 1,342,664,265[123]. - The company completed a major asset restructuring, exchanging assets valued at 79,875 million with Meilin Holdings for a 47.72% stake in Jialin Pharmaceutical[152]. Market Strategy and Growth - The company is focusing on expanding its market presence and developing new products, although specific figures were not disclosed in the report[4]. - The pharmaceutical market in China is expected to grow at an annual compound growth rate of 17%, positioning it as the second-largest pharmaceutical market globally by 2020[31]. - The company aims to enhance hospital development and product recognition through targeted marketing efforts, focusing on the growth points identified for 2017[78]. - The R&D strategy for 2017 emphasizes high-end generic drug development and collaboration with research institutions for innovative drug development, with a focus on quality and efficiency[79]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[200]. - The management highlighted plans for market expansion and new product development in the upcoming fiscal year[197]. Risk Management - The company has outlined potential risks and corresponding countermeasures in its operational discussion section, emphasizing the importance of risk awareness for investors[4]. - The company faces risks related to market and policy changes, including stricter regulations and potential price reductions due to government policies[81]. - The company is also exposed to risks from the implementation of the "Two Invoices System," which may disrupt traditional distribution models and impact business development[82]. - The company recognizes the need for significant investment in drug research and development, which carries inherent uncertainties and risks[82]. - The company plans to strengthen internal management and enhance sales efforts to mitigate potential risks and ensure industry positioning[83]. Shareholder and Dividend Policy - The company reported a negative retained earnings of -717,139,167.34 yuan as of December 31, 2016, leading to no cash dividends being proposed for the year[93]. - The company has not distributed any cash dividends in the past three years, with cash dividends for 2016, 2015, and 2014 all recorded at 0.00 yuan[92]. - The independent directors agreed with the board's proposal for capital reserve conversion to share capital, which aligns with the company's actual development status and profit distribution policy[89]. - The company has maintained a consistent policy of not distributing cash dividends over the last three years, focusing instead on capital reserve conversion[90]. - The company confirmed that the cash dividend policy complies with the company's articles of association and has a clear decision-making process[90]. Research and Development - Research and development investment increased by 41.82% to ¥51,826,973.16 in 2016, accounting for 3.59% of operating revenue[57]. - The company initiated clinical trials for multiple new drugs, including a hypertension drug and an anti-tumor drug, with significant progress reported[56]. - The company has established a strong procurement management system to ensure the quality of raw materials, adhering to new GMP certification standards[30]. - The company has maintained a competitive edge by enhancing the quality standards of its products, particularly for Aler, which has been a market leader since its launch[34]. Corporate Governance and Compliance - The company’s board of directors and management have confirmed the accuracy and completeness of the financial report, taking legal responsibility for its content[3]. - The company has committed to gradually standardize financial accounting and management practices, with annual audits by a qualified accounting firm[96]. - The company has fulfilled its commitment regarding the accuracy and completeness of information provided for the major asset restructuring as of December 22, 2016[114]. - The company has complied with all relevant laws and regulations in its operations over the past five years, with no significant violations reported[105]. - The company has no major lawsuits, arbitrations, or administrative penalties that are unresolved or foreseeable as of the date of the commitment letter[108]. Future Outlook - The management provided a positive outlook for 2017, projecting a revenue growth of approximately 15%[197]. - Future guidance indicates a revenue target of 1.8 billion RMB for 2017, reflecting a growth rate of 20%[200]. - The company plans to launch several new products in the health sector, targeting a broader customer base[197]. - The management emphasized the importance of strategic partnerships to enhance distribution channels and market reach[197].