22 CR SANJIU & 变法 为家守护 报 ANNUAL REPORT 关 爱 大 众 健 康 共创美好生活 . 110 cninf www.cnlmfo.com.cn 华润三九医药股份有限公司 2019 年年度报告 第一节重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连 带的法律责任。 公司负责人邱华伟、主管会计工作负责人梁征及会计机构负责人(会计主管 人员) 陈碧絮声明：保证年度报告中财务报告的真实、准确、完整。 董事郭巍女士因个人原因未能出席本次会议，授权董事邓荣辉先生代为出 席并行使表决权。其他董事均亲自出席了审议本次年报的董事会会议。 本公司 2019 年年度报告涉及的未来计划等前瞻性陈述，不构成公司对投资 者的实质承诺，请投资者注意投资风险。 公司经本次董事会审议通过的利润分配预案为：只分配，不转增。即以公 司 2019 年末总股本 97890 万股为基数，每 10 股派送现金 4.30 元（含税），合计 派送现金人民币 420,927,000 元。 | --- | |-------- ...

众公拳烟 三九 CR SANJIU 999. 为爱专注 为家守护 鸡血腐 内 格 两面射 九皇者 2018年度报 告 cninf 巨闊资讯 www.cninfo.com.cn 华润三九医药股份有限公司 2018 年年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连 带的法律责任。 公司负责人邱华伟、主管会计工作负责人邱华伟及会计机构负责人(会计主 管人员)陈碧絮声明：保证年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 本公司 2018 年年度报告涉及的未来计划等前瞻性陈述，不构成公司对投资 者的实质承诺，请投资者注意投资风险。 公司经本次董事会审议通过的利润分配预案为：只分配，不转增。即以公 司 2018 年末总股本 97890 万股为基数，每 10 股派送现金 3.90 元（含税），合计 派送现金人民币 381,771,000 元。 本公司请投资者认真阅读本年度报告全文，并特别注意下列风险因素。公 司存在市场及政策风险、药品降价风险、原材料价格波 ...

Financial Performance - Net profit attributable to shareholders increased by 31.26% to CNY 285,953,384.94 for the reporting period[8] - Operating revenue rose by 19.57% to CNY 2,972,200,101.90 for the reporting period[8] - Basic earnings per share increased by 31.82% to CNY 0.29 for the reporting period[8] - The company reported a net profit of CNY 1,112,454,763.03 for the year-to-date, an increase of 15.99% compared to the same period last year[8] - Cash flow from operating activities increased by 29.17% to CNY 1,523,986,904.77 year-to-date[8] Assets and Liabilities - Total assets increased by 2.98% to CNY 16,677,963,305.93 compared to the end of the previous year[8] - Net assets attributable to shareholders increased by 6.77% to CNY 10,504,647,531.83 compared to the end of the previous year[8] - Cash and cash equivalents net increase was -¥712.62 million, reflecting net outflows from investment and financing activities[19] Shareholder Information - The total number of shareholders at the end of the reporting period was 24,703[13] - The largest shareholder, China Resources Pharmaceutical Group, holds 63.60% of the shares[13] Investments and Financial Management - Trading financial assets increased to ¥490 million, a 100% increase due to the purchase of wealth management products[17] - Investment income increased by 80.15% to ¥20.18 million, primarily from higher returns on wealth management products[17] - The company engaged in entrusted wealth management with a total amount of 70,000,000 CNY, with an outstanding balance of 69,000,000 CNY[25] - There were no overdue or unrecovered amounts related to entrusted wealth management during the reporting period[25] - The company did not engage in derivative investments during the reporting period[27] Expenses - Development expenses surged by 224.83% to ¥177.21 million, driven by new drug research projects[17] - Financial expenses decreased by 94.14% to ¥1.17 million, mainly due to reduced interest expenses and increased interest income[17] - Cash outflow from operating activities increased by 37.97% to ¥9.54 billion, mainly due to higher expense payments[18] Cash Flow - Cash inflow from operating activities rose by 36.68% to ¥11.06 billion, driven by increased sales cash collections[18] Corporate Governance - The company appointed a new chairman, Wang Chuncheng, following the resignation of the previous chairman due to work changes[20] - The company reported no overdue commitments from actual controllers, shareholders, related parties, acquirers, or other related parties during the reporting period[22] - There is no warning regarding significant changes in cumulative net profit from the beginning of the year to the next reporting period compared to the same period last year[23] - There were no violations regarding external guarantees during the reporting period[28] - The company did not have any non-operating fund occupation by controlling shareholders or related parties during the reporting period[28] Business Development - The company conducted multiple on-site investigations with institutions to discuss business development from July to September 2018[26]

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 6,472,097,341.84, representing a 29.49% increase compared to CNY 4,997,952,866.57 in the same period last year[16]. - The net profit attributable to shareholders of the listed company was CNY 826,501,378.09, an increase of 11.50% from CNY 741,254,467.92 in the previous year[16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 772,719,224.90, reflecting an 11.17% increase from CNY 695,088,747.60[16]. - The net cash flow from operating activities was CNY 1,083,034,823.03, up 39.17% from CNY 778,200,196.15 in the same period last year[16]. - Basic and diluted earnings per share were both CNY 0.84, a 10.53% increase from CNY 0.76 in the previous year[16]. - The weighted average return on net assets was 8.43%, slightly up from 8.27% in the previous year[16]. - The company's revenue reached 6.472 billion yuan, a year-on-year increase of 29.49%[35]. - Net profit attributable to shareholders was 827 million yuan, reflecting an 11.50% year-on-year increase; net cash flow from operating activities was 1.083 billion yuan, up 39.17%[35]. - Operating profit for the first half of 2018 was CNY 995,771,584.55, representing a 13.9% increase compared to CNY 874,002,135.92 in the previous year[136]. - The total operating costs amounted to CNY 5,539,495,491.93, which is a 32.3% increase from CNY 4,185,600,155.03 in the previous year[136]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 16,276,078,537.97, a 0.50% increase from CNY 16,195,463,732.09 at the end of the previous year[16]. - The total liabilities decreased from CNY 6,070,781,910.25 to CNY 5,726,712,035.20, reflecting a reduction of about 5.7%[128]. - The company's equity attributable to shareholders rose to CNY 10,220,151,687.50 from CNY 9,838,512,030.08, marking an increase of approximately 3.9%[129]. - The company's total liabilities to equity ratio improved from 0.60 to 0.54, indicating a stronger equity position relative to liabilities[128]. - The total equity at the end of the period reached CNY 6,013,096,818.00, up from CNY 5,917,150,737.94 at the beginning of the year, indicating a growth of approximately 1.6%[162]. Business Operations - The self-diagnosis business focuses on consumer needs, with a product line that includes OTC drugs, health supplements, and health services, responding to the growing health demands of consumers[25]. - The company has established three business lines: Brand OTC, Professional Brand (OTX), and Health Business, to better meet consumer health needs[25]. - The company has a strong brand presence, with the "999" brand recognized as one of the most valuable brands in China, ranking 67th in the "Top 100 Most Valuable Chinese Brands" list[29]. - The product portfolio includes over 21 products with annual sales exceeding ¥100 million, with leading positions in categories such as cold medicine and skin care[30]. - The company has a robust distribution network, covering over 300,000 pharmacies and more than 10,000 hospitals nationwide, enhancing product accessibility[32]. - The company is actively expanding its market presence in grassroots medical institutions, aligning with national healthcare reform policies[32]. - The company continues to invest in R&D, focusing on high-quality products to meet consumer demands[31]. - The company has established multiple GAP planting bases for traditional Chinese medicine, ensuring a stable supply of raw materials[26]. - The company has a strategic partnership with Sanofi to promote pediatric medications, enhancing its product offerings in the professional brand segment[29]. Research and Development - The R&D center is working on 14 new product projects, including one innovative traditional Chinese medicine, and has applied for 7 national invention patents[44]. - Research and development investment increased by 83.45% to ¥279,464,337.02, up from ¥152,340,303.17, primarily due to the addition of new drug research projects[50]. - The company is enhancing its manufacturing capabilities through research on standardized planting of traditional Chinese medicinal materials[45]. Market and Regulatory Environment - The company faces risks including market and policy risks, drug price reduction risks, and raw material price fluctuation risks[4]. - The implementation of the "two-invoice system" is expected to restructure the distribution channels, prompting the company to shift towards self-operated business models[67]. - The company anticipates ongoing price reductions in pharmaceuticals due to bidding procurement mechanisms, and plans to enhance product competitiveness through quality improvements[68]. - The company is monitoring raw material prices closely to manage production costs effectively, utilizing centralized procurement strategies[70]. Environmental and Social Responsibility - The company emphasizes energy conservation and emission reduction, promoting ecological civilization and resource efficiency, with ISO14001 certification achieved[97]. - In 2018, the company plans to engage in targeted poverty alleviation through medicinal herb planting in impoverished villages, transitioning from "blood transfusion" to "blood production" style assistance[98]. - The company is actively supporting three poverty-stricken villages in Guangdong and Sichuan provinces by establishing "Sancha Ku" planting bases, focusing on long-term mechanisms for sustainable development[99]. - The company will continue to assist local villagers in medicinal herb cultivation and provide job opportunities to increase income for impoverished populations[101]. Shareholder Information - The total number of shares is 978,900,000, with 99.95% being unrestricted shares[109]. - The largest shareholder, China Resources Pharmaceutical Group Limited, holds 63.60% of the shares, totaling 622,569,632 shares[111]. - The company did not experience any changes in its controlling shareholder or actual controller during the reporting period[113]. - The company distributed CNY 450,294,000.00 to shareholders during the period, which represents a reduction in retained earnings[163]. Compliance and Governance - The company adheres to the accounting standards set by the Ministry of Finance, ensuring compliance and transparency in financial reporting[169]. - The financial statements are prepared on a going concern basis, indicating confidence in the company's future operations[171]. - The company revised its articles of association to include content on party building and investor rights protection, approved at the 2018 first extraordinary general meeting[102].

Financial Performance - The company's operating revenue for Q1 2018 was ¥3,380,320,208.06, representing a 37.59% increase compared to ¥2,456,863,818.01 in the same period last year[8] - Net profit attributable to shareholders was ¥422,914,173.75, up 12.87% from ¥374,692,855.17 year-on-year[8] - Basic and diluted earnings per share were both ¥0.43, reflecting a 13.16% increase from ¥0.38 in the same period last year[8] - The net cash flow from operating activities increased by 72.90%, reaching ¥233,463,248.53 compared to ¥135,026,123.72 in the previous year[8] Assets and Liabilities - Total assets at the end of the reporting period were ¥16,572,895,126.51, a 2.33% increase from the previous year's end[8] - Net assets attributable to shareholders increased by 4.31% to ¥10,262,236,004.94 from ¥9,838,512,030.08 at the end of the previous year[8] - Cash and cash equivalents decreased by 43.20% to CNY 970,434,655.61 from CNY 1,708,378,850.09 due to increased outflows from investment activities and operations[18] - Short-term borrowings increased by 33.33% to CNY 40,000,000.00 from CNY 30,000,000.00, primarily due to increased bank loans during the period[18] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 30,303[14] - The largest shareholder, China Resources Pharmaceutical Group Co., Ltd., held 63.60% of the shares[14] - There were no significant changes in the shareholder structure or any related party transactions reported during the period[15] Operational Highlights - The company reported a government subsidy of ¥29,808,658.53 during the reporting period[12] - Sales expenses rose by 71.68% to CNY 1,514,590,872.86, driven by increased marketing costs associated with the growth of self-diagnosis business[18] - Other current assets surged by 3146.22% to CNY 862,593,645.90, mainly due to an increase in financial products[18] - The company reported a 127.84% increase in other receivables, amounting to CNY 126,924,106.25, primarily due to an increase in employee loans[18] - Investment income increased by 33.89% to CNY 5,475,012.44, attributed to higher returns from financial product investments[18] - The net cash flow from operating activities increased by 45.30% to CNY 3,373,091,477.84, reflecting higher cash receipts from sales[19] Future Outlook - The company expects significant changes in net profit for the first half of 2018 compared to the same period last year, but specific figures were not disclosed[25] Governance and Compliance - The company completed the election of the seventh board of directors and supervisory board, with a term of three years[22] - The company conducted multiple on-site research meetings with institutions to discuss business development on January 9, January 30, March 21, and March 30, 2018[28] - There were no violations regarding external guarantees during the reporting period[29] - The company did not experience any non-operating fund occupation by controlling shareholders or their affiliates during the reporting period[30]

Financial Performance - The company's operating revenue for 2017 was CNY 11,119,916,379.78, representing a 23.81% increase compared to CNY 8,981,721,080.58 in 2016[15] - The net profit attributable to shareholders for 2017 was CNY 1,301,687,249.72, an increase of 8.67% from CNY 1,197,840,599.22 in 2016[15] - The net cash flow from operating activities was CNY 1,560,392,823.70, up 12.09% from CNY 1,392,140,677.39 in the previous year[15] - The total assets at the end of 2017 amounted to CNY 16,195,463,732.09, a 19.51% increase from CNY 13,551,748,193.07 at the end of 2016[15] - The net assets attributable to shareholders increased by 14.20% to CNY 9,838,512,030.08 from CNY 8,615,020,790.89 in 2016[15] - The basic earnings per share for 2017 was CNY 1.33, reflecting a 9.02% increase from CNY 1.22 in 2016[15] - The company's total revenue for 2017 reached ¥11,119,916,379.78, representing a year-on-year increase of 23.81%[59] - The net profit attributable to shareholders was 1.30 billion yuan, an increase of 8.67% compared to the previous year[42] Dividend and Shareholder Returns - The company plans to distribute a cash dividend of CNY 4.60 per 10 shares, totaling CNY 450,294,000[4] - The cash dividend represents 34.59% of the net profit attributable to shareholders for 2017[115] - The company implemented a cash dividend policy that aligns with its articles of association, ensuring transparency and protection of minority shareholders' rights[109] Market and Business Strategy - The company aims to enhance its brand and product differentiation in a competitive market environment[30] - The company is positioned as a "value creator" in traditional Chinese medicine, focusing on modernizing its offerings[31] - The company faces challenges in the prescription drug market due to increased pressure from medical insurance cost control[31] - The company plans to enhance its channel management and expand its coverage in grassroots medical institutions, aligning with national healthcare reforms[37] - The company aims to provide high-quality health products, including dietary supplements and traditional Chinese medicine health products, in response to consumer demand[46] - The company is actively adjusting its prescription drug product structure to emphasize oral medications and enhance the value of traditional Chinese medicine[100] Research and Development - The total R&D investment amounted to ¥326,031,335.64, representing a 16.43% increase from ¥280,030,360.09 in the previous year[71] - The company introduced 15 new product projects in 2017 and applied for 32 national invention patents, receiving 18 patents granted[54] - The R&D department has reported a 30% increase in budget allocation for innovative drug development[197] - The company is investing RMB 5 million in research and development for new technologies aimed at enhancing product efficacy[200] Risks and Challenges - The company faces risks including market and policy risks, drug price reduction risks, and raw material price fluctuation risks[4] - The company faced risks from raw material price fluctuations, impacting production costs, particularly in 2017 with significant price increases for key materials[103] - The company has strengthened market price monitoring and analysis to manage costs effectively[103] Environmental and Social Responsibility - The company engaged in targeted poverty alleviation efforts, spending over RMB 120,000 in 2017 to improve the living conditions of impoverished households in Zhangshan Village, Sichuan Province[155] - The company supported 17 impoverished households through the establishment of traditional Chinese medicine planting bases, increasing income by over RMB 5,000 per household[156] - The company is classified as a key pollutant discharge unit, with a COD discharge concentration of 90 mg/L, and a total discharge of 0.9014 tons[159] - The company emphasizes energy conservation and emission reduction, promoting ecological civilization and resource recycling[163] Corporate Governance and Management - The company reported a significant leadership change with Wang Chuncheng resigning as Chairman on June 26, 2017, and being succeeded by Song Qing[187] - The company appointed Qiu Huawen as the new President on September 8, 2017, following the resignation of Song Qing from that position[187] - The company has a diverse leadership team with extensive backgrounds in pharmaceuticals and management, which is expected to contribute to its growth strategy[189] - The board approved an annual compensation of RMB 120,000 for independent directors, which reflects the company's commitment to governance[200] Future Outlook - The company has set a future outlook with a revenue guidance of 1.8 billion RMB for the next fiscal year, reflecting a 20% increase[197] - The company plans to implement a new digital marketing strategy aimed at increasing online sales by 40% over the next year[197] - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of RMB 10 million allocated for potential deals[200]

Financial Performance - Total assets increased by 11.86% to CNY 15,159,202,717.81 compared to the end of the previous year[8] - Net assets attributable to shareholders increased by 10.24% to CNY 9,496,979,768.49 compared to the end of the previous year[8] - Operating revenue for the current period reached CNY 2,485,826,997.57, a 31.99% increase year-on-year[8] - Net profit attributable to shareholders decreased by 6.56% to CNY 217,860,550.45 compared to the same period last year[8] - Net profit attributable to shareholders after deducting non-recurring gains and losses increased by 6.51% to CNY 205,684,377.75[8] - Basic earnings per share decreased by 8.33% to CNY 0.22[8] - The weighted average return on net assets was 2.32%, a decrease of 0.56% compared to the same period last year[8] - The company reported a net cash flow from operating activities of CNY 1,179,857,516.07, an increase of 18.57% year-to-date[8] Shareholder Information - The top shareholder, China Resources Pharmaceutical Group, holds 63.60% of the shares[12] - The total number of ordinary shareholders at the end of the reporting period was 28,304[12] Asset and Liability Changes - Prepayments increased by 72.91% to ¥128,496,391.04 due to higher advance payments for goods[16] - Other receivables surged by 198.37% to ¥169,934,999.41 primarily due to the addition of newly acquired companies[16] - Short-term borrowings rose by 188.12% to ¥57,279,440.82 as a result of bank loans from newly acquired companies[16] Expense and Income Analysis - Sales expenses increased by 30.41% to ¥2,905,492,453.71 mainly due to higher marketing and promotional costs[16] - Investment income decreased by 39.81% to ¥11,203,912.41 due to reduced returns from financial products[16] - Cash inflow from investment activities dropped by 44.68% to ¥1,331,191,098.76 compared to the previous year[17] - Cash outflow for investments decreased by 30.99% to ¥1,461,000,000.00 due to lower purchases of financial products[17] - The net cash flow from investment activities turned negative at -¥780,608,251.09, a decline of 2134.28% year-on-year[17] Corporate Governance - The company applied for a borrowing limit of ¥800 million from its controlling shareholder, China Resources Pharmaceutical Group[18] - The company appointed Mr. Qiu Huawei as the new president, effective from September 9, 2017[19] Social Responsibility Initiatives - In Q3 2017, the company provided essential living supplies to 3 poverty-stricken households (10 individuals) in Zhangshan Village, improving their living conditions[27] - The company supplied medicines such as Sanjiu Weitai and 999 Cold Medicine to the village clinic to meet the healthcare needs of residents[27] - The company established traditional Chinese medicine planting bases in poverty-stricken areas, involving 17 households (41 individuals) in the initiative[27] - By Q3 2017, the company supported 4 households (7 individuals) through traditional Chinese medicine planting, with each household's income increasing by over 4,000 yuan[27] - The company plans to continue collaborating with local governments to promote traditional Chinese medicine planting and provide labor opportunities to increase local income[28]