Financial Performance - The company reported a revenue of CNY 166,110,936.93 for the first half of 2016, a decrease of 24.64% compared to CNY 220,430,538.40 in the same period last year[20]. - Net profit attributable to shareholders was CNY 15,942,470.88, down 49.95% from CNY 31,852,480.32 year-on-year[20]. - The net profit after deducting non-recurring gains and losses was CNY 15,813,537.87, a decrease of 46.23% compared to CNY 29,406,980.32 in the previous year[20]. - Basic and diluted earnings per share were both CNY 0.0314, reflecting a 50% decrease from CNY 0.0628 in the previous year[20]. - The weighted average return on equity was 1.70%, down from 3.62% year-on-year, indicating a decline in profitability[20]. - The company's operating revenue for the reporting period was ¥166,110,936.93, a decrease of 24.64% compared to the same period last year, primarily due to adjustments in the pharmaceutical distribution business of its subsidiary, Jia Ying Pharmaceutical, and a decline in sales revenue from Jinsha Pharmaceutical[30]. - The net profit for the period was ¥15,942,470.88, down 49.95% year-on-year, attributed to the same factors affecting revenue[31]. - The company's operating profit decreased to CNY 19,047,283.72, down 46.6% from CNY 35,515,837.42 in the same period last year[117]. - The company reported a total profit of CNY 19,199,002.24, down 50.5% from CNY 38,745,837.42 in the same period last year[117]. Cash Flow and Investments - The company experienced a net cash flow from operating activities of CNY -5,296,722.14, an improvement of 15.23% from CNY -6,248,424.50 in the same period last year[20]. - The company reported a significant decline in cash flow from investment activities, with a net cash outflow of ¥6,745,112.35, a decrease of 403.08% year-on-year[31]. - The net cash flow from investing activities was -6,745,112.35 yuan, a decline from a positive 2,225,530.13 yuan in the previous period[125]. - Cash inflow from financing activities totaled 19,294,285.37 yuan, while cash outflow was 7,338,864.93 yuan, resulting in a net cash flow of -7,338,864.93 yuan[126]. - The ending balance of cash and cash equivalents was 26,835,701.89 yuan, down from 29,700,291.40 yuan in the previous period[126]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,036,540,489.19, a decrease of 1.09% from CNY 1,047,997,444.15 at the end of the previous year[20]. - Current liabilities decreased from CNY 83,550,252.54 to CNY 56,150,826.70, a reduction of about 32.8%[109]. - The total liabilities decreased from CNY 118,296,988.30 to CNY 90,897,562.46, a reduction of approximately 23.1%[109]. - The company's cash and cash equivalents decreased from 46,216,401.31 RMB to 26,835,701.89 RMB during the reporting period[107]. - Accounts receivable decreased from 141,831,187.28 RMB to 108,992,224.40 RMB[107]. - Inventory increased from 47,369,982.96 RMB to 55,182,850.07 RMB[107]. - The total current assets decreased from CNY 293,842,935.29 to CNY 289,489,017.54, a decline of approximately 1.2%[110]. Shareholder Information - The company plans not to distribute cash dividends or issue new shares from capital reserves for the half-year period[53]. - The company plans to distribute cash dividends amounting to no less than 10% of the distributable profits achieved each year over the next three years, with a cumulative cash distribution of at least 30% of the average distributable profits over these three years[81]. - The cash dividend proportion will be at least 80% if the company is in a mature stage without significant capital expenditure, and at least 40% if there are major capital expenditures planned[81]. - The total number of shares before the change was 507,509,800, with 20.49% being restricted shares[88]. - The number of unrestricted shares increased from 403,542,000 (79.51%) to 405,247,313 (79.85%) due to the release of 1,705,313 shares[88]. - The company released 1,705,313 shares from lock-up on January 4, 2016, which corresponds to 25% of the total shares held by directors and executives[88]. - The largest shareholder, Huang Xiaobiao, holds 11.44% of the shares, totaling 58,083,001 shares[95]. - The second-largest shareholder, Chen Yonghong, holds 10.94% of the shares, totaling 13,885,250 shares, which are pledged[95]. Operational Strategy - The company plans to enhance its marketing system and brand development, focusing on core products such as Shuangliao Houfeng San and Zhonggan Ling Pian[28]. - The decline in revenue and profit was primarily due to adjustments in the pharmaceutical distribution business of its subsidiary, Jiaying Pharmaceutical, and a decrease in sales from Jinsha Pharmaceutical[28]. - The company has a strong competitive advantage with its proprietary products, including patented traditional Chinese medicines, which have established brand recognition and market share[37]. Compliance and Governance - The company confirms its ability to continue as a going concern for the next 12 months from the reporting date[149]. - The financial statements are prepared based on the going concern principle and comply with the accounting standards issued by the Ministry of Finance[148][151]. - The company aims to maintain compliance with legal and regulatory requirements in all transactions[79]. - The company has committed to avoiding any business competition with its subsidiaries during the shareholder period[79]. Accounting Policies - The company adopts Renminbi as its functional currency for accounting purposes[154]. - The company’s consolidated financial statements include all subsidiaries under its control, reflecting the overall financial status and performance of the group[157][158]. - Cash and cash equivalents are defined as cash on hand and deposits that can be used for payment at any time, with investments meeting specific criteria classified as cash equivalents[164]. - Financial instruments include financial assets, financial liabilities, and equity instruments, classified at initial recognition based on their nature[167].

广东嘉应制药股份有限公司 2016 年第一季度报告正文 证券代码：002198 证券简称：嘉应制药 公告编号：2016-013 广东嘉应制药股份有限公司 2016 年第一季度报告正文 广东嘉应制药股份有限公司 2016 年第一季度报告正文 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。 公司负责人陈泳洪、主管会计工作负责人黄利兵及会计机构负责人(会计主 管人员)钟苑苑声明：保证季度报告中财务报表的真实、准确、完整。 2 广东嘉应制药股份有限公司 2016 年第一季度报告正文 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 公司是否因会计政策变更及会计差错更正等追溯调整或重述以前年度会计数据 1 对公司根据《公开发行证券的公司信息披露解释性公告第 1 号——非经常性损益》定义界定的非经常性损益项目，以及把《公 开发行证券的公司信息披露解释性公告第 1 号——非经常性损益》中列举的非经常性损益项目界定为经常性损益的项目，应 说明原因 ...

Financial Performance - The company's operating revenue for 2015 was CNY 475,805,044.29, a decrease of 15.91% compared to CNY 565,820,205.51 in 2014[17]. - The net profit attributable to shareholders for 2015 was CNY 66,354,921.06, down 9.91% from CNY 73,653,927.00 in the previous year[17]. - The net cash flow from operating activities decreased by 59.06% to CNY 42,312,921.81 from CNY 103,362,813.35 in 2014[17]. - Basic earnings per share for 2015 were CNY 0.1307, a decline of 9.92% from CNY 0.1451 in 2014[17]. - The company reported a significant decrease in non-operating income, totaling CNY 2,615,399.07 in 2015 compared to CNY 9,226,114.78 in 2014[22]. - The weighted average return on equity for 2015 was 7.40%, down from 8.84% in 2014[17]. - The net profit attributable to shareholders was CNY 66.35 million, down 9.91% year-on-year, primarily due to adjustments in the subsidiary's pharmaceutical distribution business and reduced government subsidies[37]. - The company's self-produced pharmaceuticals accounted for 92.55% of total revenue, with sales amounting to CNY 440.35 million, reflecting a growth of 5.06%[44]. - Trade pharmaceuticals saw a significant decline in revenue, dropping 75.83% to CNY 35.45 million[44]. - The gross profit margin for the pharmaceutical sector was 73.37%, an increase of 12.47% compared to the previous year[47]. Assets and Investments - Total assets at the end of 2015 were CNY 1,047,997,444.15, representing a 1.23% increase from CNY 1,035,283,718.38 at the end of 2014[17]. - The net assets attributable to shareholders increased by 7.69% to CNY 929,700,455.85 from CNY 863,345,534.79 in 2014[17]. - The company transferred 100% equity of its subsidiary, Renkang Pharmaceutical, for ¥10.99 million, resulting in its exclusion from the consolidated financial statements[51]. - Long-term equity investments increased by 0.73% to CNY 165.32 million, reflecting a growing investment strategy[63]. - Fixed assets increased by 7.78% to CNY 2.75 billion, indicating expansion in operational capacity[63]. Strategic Initiatives - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company aims to expand its market presence in rural and community healthcare sectors, leveraging its cost-effective and high-quality products to capture a larger market share[33]. - The company has invested in the second phase of the Jinsan Pharmaceutical Technology Park, which has been transferred to fixed assets, reflecting ongoing infrastructure development[32]. - The company is actively developing new products based on natural camphor, with six new products currently in the small-scale testing phase[40]. - The company plans to optimize its marketing system and enhance brand development in 2016, focusing on increasing product distribution rates and promoting high-margin products[70]. Market and Industry Trends - The pharmaceutical industry in China experienced a slowdown in growth, with the overall market size reaching CNY 1,377.5 billion in 2015, reflecting a year-on-year growth of only 7.6%, a decline of 5.6% compared to 2014[29]. - The overall pharmaceutical industry is undergoing structural adjustments, with policies encouraging innovation, mergers, and the integration of internet technologies into the sector[30]. - The market for throat, cold, and gastrointestinal medications remains predominantly in the mid-to-low-end segment, presenting opportunities for growth as healthcare investments increase in rural areas[33]. - The company highlighted risks related to product concentration, rising operating costs, intensified industry competition, and changes in industry policies[4]. Research and Development - The company has developed several new drugs, including the innovative TCM drug Sangpi Capsule, which has completed Phase II clinical trials, and the anti-influenza drug Lianzhijiedu Capsule, which is currently on the market[34]. - The company filed for three patents and published five papers related to its research projects during the reporting period[40]. - Collaboration with South China University of Technology and other research institutions will be strengthened to enhance R&D innovation and accelerate the development of existing products[72]. Governance and Compliance - The company has established principles for fair transactions with related parties, ensuring equal and voluntary agreements to protect the interests of all parties involved[94]. - The company has committed to ensuring that the compensation obligations are fulfilled in accordance with the audit reports issued by qualified accounting firms[91]. - The company has maintained a consistent governance structure with a focus on accountability and transparency[162]. - The independent directors attended all board meetings and did not raise any objections to company matters during the reporting period[187]. Shareholder Relations - The company has a strong commitment to protecting the rights of minority investors through improved governance practices[172]. - The company has established a policy to propose mid-term cash distributions based on its financial status[96]. - The company has committed to distributing at least 30% of the annual distributable profit in cash for the next three years, ensuring a minimum cash dividend of 10% over three consecutive years[96]. Risks and Challenges - The company faces risks related to raw material supply and price fluctuations, particularly for traditional Chinese medicine materials, and will implement strategies to mitigate these risks[74]. - The concentration of revenue from key products, such as Shuangliao Houfeng San and Jiekou Qiqi Pian, poses a risk to future profitability, prompting the company to diversify its product offerings[75]. - The company faces increasing competition in the traditional Chinese medicine industry, with over 1,000 manufacturers and a risk of declining average profit margins due to blind expansion[77].

Financial Performance - Operating revenue for the reporting period was CNY 98,206,877.54, a decrease of 25.86% year-on-year, while revenue for the year-to-date period was CNY 318,637,415.94, down 19.32%[7] - Net profit attributable to shareholders for the reporting period was CNY 9,723,109.26, a decline of 48.44% year-on-year, with year-to-date net profit at CNY 41,575,589.58, down 17.80%[7] - The basic earnings per share for the reporting period was CNY 0.0192, a decrease of 48.39% compared to the same period last year[7] - The net profit attributable to shareholders for 2015 is expected to range from 58 million to 70 million CNY, representing a decrease of 21.25% to 4.96% compared to the previous year[26] - The net profit for 2014 was reported at 73.65 million CNY, indicating a decline in performance primarily due to adjustments in the pharmaceutical distribution business and a reduction in government subsidies received[27] Assets and Liabilities - Total assets at the end of the reporting period decreased by 3.00% to CNY 1,004,230,532.01 compared to the end of the previous year[7] - Accounts receivable decreased by 33.33% compared to the beginning of the year, primarily due to the recovery of receivables from pharmaceutical distribution[14] - Other receivables increased by 266.02% compared to the beginning of the year, mainly due to increased advances for market development[14] - Long-term equity investments increased by 60.78% compared to the beginning of the year, attributed to additional investments in Huqingyuan and increased investment income[14] Cash Flow - Cash flow from operating activities for the year-to-date period was CNY 15,905,091.08, down 80.32%[7] - Cash received from operating activities decreased by CNY 26.07 million, a decline of 82.82%, mainly due to a reduction in receivables[17] - Cash paid for purchasing goods and services increased by CNY 38.63 million, a growth of 50.18%, mainly due to increased payments for pharmaceutical distribution[17] - Cash received from investment activities increased by CNY 16 million, a growth of 100.00%, mainly from the recovery of principal from financial products[18] - Cash paid for fixed assets and other long-term assets decreased by CNY 54.37 million, a decline of 77.27%, mainly due to reduced investment in the second phase of the project[18] - Cash paid for debt repayment increased by CNY 17.20 million, a growth of 114.67%, mainly due to increased bank loan repayments[19] - Cash paid for dividends and interest decreased by CNY 18.93 million, a decline of 92.15%, mainly due to last year's cash dividend distribution[19] - Cash received from financing activities increased by CNY 3.31 million, a growth of 64.07%, mainly due to increased recovery of bank acceptance bill deposits[19] - Cash paid for other financing activities decreased by CNY 16.37 million, a decline of 100.00%, as there were no bank acceptance bills issued this period[19] Shareholder Commitments and Governance - The company has committed to avoiding any competition with its subsidiaries during the shareholder period[23] - Transactions with related parties will follow principles of equality, voluntariness, and fairness[23] - The company will ensure that no illegal transfer of funds or profits occurs through transactions[23] - Shareholders have pledged not to engage in any competing business activities during their tenure[23] - The company will adhere to legal procedures and disclosure obligations for related transactions[23] - The commitment letter from shareholders is legally binding and ensures compensation for any economic losses caused[23] - The company has committed to a legal obligation to ensure fair pricing in transactions with independent third parties to protect the interests of shareholders[24] - The company will not engage in any business activities that may harm its interests during the tenure of its directors and senior management[24] Dividend Policy - The company commits to distributing at least 10% of the annual distributable profit in cash dividends over the next three years, with a cumulative cash distribution not less than 30% of the average annual distributable profit for the three years[25] - In mature development stages without significant capital expenditure plans, the cash dividend proportion should be at least 80% of the profit distribution[25] - The company plans to actively pursue cash profit distribution in accordance with relevant laws and regulations, ensuring a sustainable return to shareholders[25] Other Financial Information - The company received government subsidies totaling CNY 3,530,000 during the reporting period[8] - Operating costs decreased by CNY 69.34 million, a decline of 42.12%, mainly due to the decrease in pharmaceutical distribution business[16] - Investment income increased by CNY 2.447 million, a growth of 942.27%, primarily from the disposal of Renkang Pharmaceutical and equity investment income from Huqingyuan[16] - The stock price for the current issuance is set at 8.31 CNY per share[22] - The compensation obligation for shareholders is based on the net profit after deducting non-recurring gains and losses[22] - A impairment test will be conducted on the equity of Jinsha Pharmaceutical at the end of the compensation period[22] - If the impairment amount exceeds the compensation shares ratio, cash compensation will be required[22] - The company has no securities investments or holdings in other listed companies during the reporting period[28][29] - There are no instances of non-operating fund occupation by controlling shareholders or their affiliates reported during the period[31] - The company has not reported any violations regarding external guarantees during the reporting period[30]

Financial Performance - The company reported a revenue of CNY 220,430,538.40 for the first half of 2015, a decrease of 16.02% compared to the same period last year[20]. - The net profit attributable to shareholders was CNY 31,852,480.32, reflecting a slight increase of 0.41% year-on-year[20]. - The net profit after deducting non-recurring gains and losses was CNY 29,406,980.32, down 7.25% from the previous year[20]. - The total operating revenue for the first half of 2015 was CNY 220,430,538.40, a decrease of 16.06% compared to CNY 262,464,778.41 in the same period of 2014[121]. - Net profit for the first half of 2015 was CNY 31,852,480.32, slightly up by 0.41% from CNY 31,721,790.87 in the previous year[122]. - The company reported a total profit of CNY 38,745,837.42, a decrease of 1.13% from CNY 39,189,501.19 in the same period of 2014[121]. - The expected net profit for the first nine months of 2015 is projected to be between 3,500,000 and 4,500,000 yuan, reflecting a decrease of 30.80% to 11.03% compared to the previous year[52]. Cash Flow and Liquidity - The net cash flow from operating activities was negative at CNY -6,248,424.50, a decline of 111.59% compared to the same period last year[20]. - Cash flow from operating activities showed a significant decline, with a net outflow of ¥6,248,424.50, down 111.59% from the previous year[30]. - The cash and cash equivalents at the end of the period amounted to 29,700,291.40 CNY, compared to 54,075,881.40 CNY at the end of the previous period, showing a decrease in liquidity[130]. - The company reported a net increase in cash and cash equivalents of 4,887,758.89 CNY, contrasting with a decrease of 1,119,724.08 CNY in the previous period, suggesting a slight recovery in cash position[130]. - The total cash inflow from investment activities was 17,294,970.60 CNY, compared to 0 CNY in the previous period, indicating a positive shift in investment cash flows[129]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 1,009,238,968.93, a decrease of 2.52% from the end of the previous year[20]. - The company's total liabilities decreased from CNY 171,938,183.59 to CNY 114,040,953.82, a decrease of around 33.8%[113]. - Owner's equity increased from CNY 863,345,534.79 to CNY 895,198,015.11, reflecting a growth of about 3.7%[114]. - The total current assets increased from CNY 56,856,316.36 to CNY 63,900,020.82, an increase of approximately 12.0%[116]. Investments and Subsidiaries - The company transferred 100% equity of its wholly-owned subsidiary, RenKang Pharmaceutical, in June 2015 to optimize its strategic layout and improve operational efficiency[28]. - The company’s long-term equity investments rose by 61.29% to ¥14,219,629.81, reflecting increased investment in Huqingyuan Biotechnology[31]. - The company has subsidiaries including Guangdong Jiaying Pharmaceutical Co., Ltd. and Hunan Jinsha Pharmaceutical Co., Ltd. as of June 30, 2015[152]. Research and Development - The company continues to focus on the development of its leading products, including Shuangliao Houfeng San and Zhonggan Ling Pian, while optimizing product structure[28]. - Research and development expenses decreased by 11.31% to ¥5,687,430.69, reflecting a focus on cost management[30]. - The company has developed several new drugs, including a diabetes innovation drug and an anti-influenza new drug, enhancing its product portfolio[38]. Shareholder and Governance Matters - The company did not distribute cash dividends or issue bonus shares during this period[5]. - The company has committed to ensuring that the transaction prices with related parties are fair and will not use transactions to illegally transfer funds or profits from its subsidiaries[86]. - The total number of ordinary shareholders at the end of the reporting period was 41,593[96]. - The shareholding structure shows that Huang Xiaobiao holds 11.23% (57,000,000 shares) and Chen Yonghong holds 10.94% (55,541,000 shares) of the company[97]. Compliance and Regulatory Matters - The financial statements comply with the accounting standards and accurately reflect the company's financial position, operating results, and cash flows[156]. - The company has not undergone any penalties or rectifications during the reporting period[90]. - There were no significant litigation or arbitration matters during the reporting period[60]. Future Outlook and Strategy - The company plans to expand its market presence in rural and community healthcare sectors, leveraging its cost-effective and high-quality products[37]. - The company plans to distribute cash dividends amounting to no less than 10% of the annual distributable profits for the next three years, with a cumulative cash distribution of at least 30% of the average distributable profits over these three years[87]. - The company aims to leverage its capital reserves for future growth and expansion strategies[150].

广东嘉应制药股份有限公司 2015 年第一季度报告正文 广东嘉应制药股份有限公司 2015 年第一季度报告正文 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。 公司负责人陈泳洪、主管会计工作负责人黄利兵及会计机构负责人(会计主 管人员)方钦雄声明：保证季度报告中财务报表的真实、准确、完整。 2 广东嘉应制药股份有限公司 2015 年第一季度报告正文 证券代码：002198 证券简称：嘉应制药 公告编号：2015-018 广东嘉应制药股份有限公司 2015 年第一季度报告正文 1 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 公司是否因会计政策变更及会计差错更正等追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业收入（元） | 103,997,545.96 | 126,234,428.13 | -17.62% ...

Financial Performance - Operating revenue for the period reached CNY 132,457,775.83, a significant increase of 321.04% year-on-year [7]. - Net profit attributable to shareholders rose by 106.14% to CNY 18,856,297.26 for the period [7]. - The net cash flow from operating activities surged by 3,298.59% to CNY 80,803,371.94 year-to-date [7]. - The company reported a basic earnings per share of CNY 0.0372, up 66.82% compared to the same period last year [7]. - The weighted average return on equity improved to 2.27%, compared to -0.95% in the previous year [7]. - The company received government subsidies totaling CNY 10,552,268.38, contributing positively to its financial performance [8]. - The net profit attributable to shareholders for 2014 is expected to range from 68 million to 73 million RMB, representing a year-on-year decline of 51.25% to 47.67% [28]. - The decline in net profit is primarily due to a non-recurring gain of 104.24 million RMB from the acquisition of Jinsha Pharmaceutical last year [28]. - Excluding non-recurring gains, the net profit attributable to ordinary shareholders is projected to increase by 81.29% to 96.61% compared to the previous year, driven by the consolidation of Jinsha Pharmaceutical and new pharmaceutical distribution business [28]. Asset and Investment Changes - Total assets increased by 10.80% to CNY 1,018,289,379.88 compared to the end of the previous year [7]. - Accounts receivable increased by CNY 37,163,000, a growth of 39.13%, due to the expansion of pharmaceutical distribution business [15]. - Long-term equity investments rose by CNY 7,490,300, marking a 100.00% increase, attributed to acquiring 45% equity in Guangdong Huqingyuan Biotechnology Co., Ltd. [15]. - The company is continuing the construction of the second phase of the project at 金沙药业, leading to an increase in construction in progress by 226.88% to CNY 28,979,600 [15]. Liabilities and Borrowings - Short-term borrowings increased by CNY 14.20 million, a growth of 94.67%, mainly due to new bank loans during the period [16]. - Accounts payable increased by CNY 30.83 million, a growth of 189.10%, primarily due to the expansion of pharmaceutical distribution business [16]. Revenue and Cost Analysis - Operating revenue increased by CNY 302.06 million, a growth of 325.29%, mainly due to the consolidation of Jinsan Pharmaceutical and the development of pharmaceutical distribution business [17]. - Operating costs increased by CNY 118.68 million, a growth of 258.14%, attributed to the same reasons as the revenue increase [17]. - Sales expenses increased by CNY 108.91 million, a growth of 506.98%, primarily due to the consolidation of Jinsan Pharmaceutical [17]. - Cash received from sales of goods and services increased by CNY 293.27 million, a growth of 279.85%, mainly due to the consolidation of Jinsan Pharmaceutical [19]. - Cash paid for purchasing goods and services increased by CNY 20.32 million, a growth of 35.86%, attributed to the consolidation of Jinsan Pharmaceutical [19]. - Cash paid for taxes increased by CNY 55.54 million, a growth of 715.01%, mainly due to the consolidation of Jinsan Pharmaceutical [19]. - Cash paid for fixed assets increased by CNY 66.33 million, a growth of 1,644.07%, primarily due to land purchases and continued investment in Jinsan Pharmaceutical's second-phase project [20]. - Investment income decreased by CNY 12.96 million, a decline of 102.04%, due to the consolidation of Jinsan Pharmaceutical into the financial statements [18]. Compensation and Shareholder Commitments - The total number of shares to be compensated is capped at 48,754,924 shares based on the issuance obtained by the subscription party [23]. - The forecasted net profit for the compensation period (2013-2015) sums up to 184.46 million yuan, while the actual net profit will be verified by a special audit report [23]. - The compensation amount in cash for each subscription party is calculated based on the difference between the compensated shares and the already compensated shares multiplied by the stock price of 8.31 yuan per share [23]. - If the company issues additional shares, the compensation shares will be adjusted according to the formula involving the increase or bonus share ratio [23]. - A impairment test will be conducted on the equity of Jinsan Pharmaceutical at the end of the compensation period, with specific conditions for additional cash compensation if impairment exceeds a certain threshold [23]. - The company has received commitments from related parties to avoid competition and ensure fair transactions during the shareholding period [24]. - The commitments include not engaging in any business that competes with the main business of the company or its subsidiaries [24]. - The company will ensure that any unavoidable transactions are conducted on an equal, voluntary, and fair basis to protect the interests of all stakeholders [24]. - The compensation implementation procedures will be initiated after the special audit report on the profit forecast realization is disclosed [24]. - The board will propose a buyback plan to the shareholders' meeting after determining the number of shares and cash amounts to be compensated [24].

Financial Performance - The company achieved operating revenue of CNY 262,464,778.41, an increase of 327.47% compared to the same period last year[19]. - The net profit attributable to shareholders was CNY 31,721,790.87, representing a growth of 330.09% year-on-year[19]. - The net cash flow from operating activities reached CNY 53,934,698.49, up 769.31% from the previous year[19]. - The basic earnings per share increased to CNY 0.0625, a rise of 247.22% compared to the same period last year[19]. - The company reported a net profit of ¥3,172.18 million, up 330.09% from the previous year, successfully achieving its annual operational goals[34]. - The company reported a total comprehensive income of ¥31,721,790.87, significantly higher than ¥7,375,569.40 from the previous period, indicating a growth of approximately 330%[117]. - The company reported a net profit of ¥31,721,790.87 for the period, a significant increase compared to the previous year's profit[130]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 970,354,308.17, reflecting a 5.59% increase from the end of the previous year[19]. - Total liabilities increased to CNY 148,940,909.51 from CNY 109,346,490.44, which is an increase of approximately 36.29%[111]. - Shareholders' equity rose to CNY 821,413,398.66 from CNY 809,656,594.43, representing an increase of about 1.09%[111]. - The total owner's equity at the end of the period was ¥821,413,390.00, reflecting growth from the previous year's total[134]. Research and Development - The company is focusing on the development of new drugs, including a project for an anti-tumor nano drug in collaboration with Jinan University[27]. - The company has entered the second phase of clinical trials for a new drug, Sangpi Capsule, aimed at treating type II diabetes[27]. - Research and development expenses totaled ¥8,912,958.08, with a focus on the development of new anti-tumor nano-drug projects and R&D costs from the consolidation of Jinsan Pharmaceutical[32]. - The company has made substantial investments in new drug development, including innovative diabetes treatments and anti-influenza medications, reflecting its commitment to R&D[38]. Marketing and Business Expansion - The company has expanded its marketing efforts and added new pharmaceutical distribution business to boost performance[27]. - The company plans to expand its market presence in rural and community healthcare sectors, leveraging its cost-effective and high-quality products[37]. - Jinsan Pharmaceutical's products, including unique offerings like "Jiesu Qili Pian," have gained significant market acceptance and brand recognition, enhancing competitive advantages[38]. Dividends and Shareholder Returns - The company will not distribute cash dividends or bonus shares for this reporting period[5]. - The company distributed cash dividends of ¥0.80 per share, totaling ¥20,300,393.92, based on a total share capital of 253,754,924 shares[53]. - The company plans to distribute cash dividends amounting to no less than 30% of the average distributable profit over the next three years, with a principle of annual cash distribution[85]. Equity and Share Capital - The company’s total share capital increased from 253,754,924 shares to 507,509,848 shares following a capital reserve conversion plan, where every 10 shares resulted in an additional 10 shares being issued[92]. - The company issued 48,754,924 shares to acquire 64.466% equity of Hunan Jinsida Pharmaceutical Co., Ltd., resulting in a total share capital of 253,754,924 shares as of December 31, 2013[145]. Corporate Governance and Compliance - The company has not engaged in any significant non-public fundraising investment projects during the reporting period[51]. - The company has not experienced any changes in its controlling shareholder or actual controller during the reporting period[98]. - The company has no penalties or rectifications during the reporting period, indicating compliance with regulations[86]. - The company guarantees that it will not use its shareholder rights to manipulate or instruct the management of its subsidiaries[83]. Cash Flow Management - The company experienced a net cash outflow from financing activities of ¥19,545,741.36, compared to a net outflow of ¥26,223,147.69 in the previous period, indicating an improvement in cash flow management[124]. - Cash received from operating activities totaled ¥76,186,035.75, an increase of 39.9% from ¥54,503,942.81 in the previous period[127]. - The total cash and cash equivalents at the end of the period reached ¥18,588,558.47, compared to ¥895,525.48 at the end of the previous period, reflecting a substantial increase of 1985.5%[128]. Financial Reporting and Accounting Policies - The company’s financial statements comply with the requirements of the enterprise accounting standards, reflecting the financial status, operating results, and cash flows accurately[148]. - The company follows consistent accounting policies and periods for all subsidiaries included in the consolidated financial statements, making necessary adjustments if discrepancies exist[159]. - The company recognizes the fair value of remaining equity investments at the loss of control date when it disposes of a subsidiary[161]. Shareholder Compensation and Obligations - If the actual net profit falls below the predicted net profit, the shareholders will compensate the difference through share repurchase, with a maximum of 48,754,924 shares available for compensation[82]. - The company is committed to fulfilling the compensation obligations as per the agreements made with the shareholders[82]. - The compensation obligations are individual to each shareholder, with no joint liability among them[82].

Financial Performance - The company achieved operating revenue of CNY 262,464,778.41, representing a growth of 327.47% compared to the same period last year[19]. - The net profit attributable to shareholders reached CNY 31,721,790.87, an increase of 330.09% year-on-year[19]. - The net cash flow from operating activities was CNY 53,934,698.49, reflecting a significant increase of 769.31% compared to the previous year[19]. - The basic earnings per share rose to CNY 0.0625, up 247.22% from CNY 0.0180 in the same period last year[19]. - The total assets at the end of the reporting period were CNY 970,354,308.17, a 5.59% increase from the end of the previous year[19]. - The company's operating revenue reached ¥262,464,778.41, an increase of 327.47% compared to the same period last year, primarily due to the consolidation of Jingsha Pharmaceutical and the addition of new pharmaceutical distribution business[31]. - Operating costs amounted to ¥110,150,320.54, reflecting a 258.11% increase year-on-year, mainly attributed to the consolidation of Jingsha Pharmaceutical and the new pharmaceutical distribution business[32]. - The net profit attributable to shareholders was ¥3,172.18 million, up 330.09% year-on-year, indicating strong performance against initial operational targets[34]. - The company reported a significant increase in sales expenses, totaling ¥80,605,650.38, which is a 412.84% increase year-on-year, primarily due to the consolidation of Jingsha Pharmaceutical and the new pharmaceutical distribution business[32]. Research and Development - The company is focusing on the development of new drugs, including a project for an anti-tumor nano drug in collaboration with Jinan University[27]. - The company has entered the second phase of clinical trials for a new drug, Sangpi Capsule, aimed at treating type II diabetes[27]. - Research and development expenses totaled ¥8,912,958.08, with significant investments in the development of new anti-tumor nano-drug projects and R&D costs from the consolidation of Jingsha Pharmaceutical[32]. - The company has successfully developed several new drug varieties, including innovative diabetes treatments and anti-influenza medications, demonstrating a commitment to R&D and market innovation[38]. Market Expansion and Strategy - The company plans to enhance its production quality management and is preparing for GMP certification[27]. - The company has expanded its marketing efforts and added new pharmaceutical distribution business to boost performance[27]. - The company plans to expand its market presence in rural and community healthcare sectors, leveraging its cost-effective and high-quality products[37]. Shareholder and Dividend Information - The company will not distribute cash dividends or bonus shares for this reporting period[5]. - The company completed a cash dividend distribution of ¥0.80 per share, totaling ¥20,300,393.92, and conducted a capital reserve transfer to increase total shares to 507,509,848[53]. - The company commits to distributing at least 30% of the average distributable profit in cash over the next three years, with annual cash dividends planned[85]. - The company’s board of directors can propose stock dividends if there are remaining distributable profits after cash distributions[85]. Governance and Compliance - The company maintains a strong governance structure in compliance with relevant laws and regulations, ensuring independent operations and proper information disclosure[58]. - The company reported no significant litigation or arbitration matters during the reporting period[59]. - The company has no penalties or rectifications during the reporting period, indicating stable compliance[86]. Financial Position and Assets - Current assets increased to CNY 296,496,993.81 from CNY 271,855,235.73, representing an increase of approximately 9.05%[109]. - Total non-current assets reached CNY 673,857,314.36, up from CNY 647,147,849.14, marking an increase of about 4.06%[110]. - Total liabilities increased to CNY 148,940,909.51 from CNY 109,346,490.44, which is an increase of approximately 36.3%[111]. - Owner's equity rose to CNY 821,413,398.66 from CNY 809,656,594.43, indicating a growth of about 1.86%[111]. Equity and Share Capital - The total capital stock at the end of the current period is CNY 507,509,840, with a paid-in capital of CNY 253,754,920[137]. - The company’s total share capital increased to 507,509,848 shares after a capital increase through cash dividends and capital reserves[145]. - The company issued 48,754,924 shares to acquire 64.466% equity of Hunan Jinsida Pharmaceutical Co., Ltd., resulting in a total share capital of 253,754,924 shares as of December 31, 2013[145]. Financial Reporting and Accounting Policies - The company’s financial statements comply with the requirements of the enterprise accounting standards, reflecting its financial status and operating results accurately[148]. - The company follows consistent accounting policies and periods for all subsidiaries included in the consolidated financial statements, making necessary adjustments if discrepancies exist[159]. - The company recognizes the fair value of remaining equity investments at the loss of control date when it disposes of a subsidiary[161]. Investment and Cash Flow - The company reported a total cash inflow from investment activities of ¥15,000,000.00, compared to ¥5,330,100.00 in the previous period, marking an increase of about 181%[127]. - The net cash flow from financing activities was -¥11,286,395.82, a decrease from -¥26,223,147.69, indicating an improvement of approximately 57%[128]. - The total cash and cash equivalents at the end of the period reached ¥18,588,558.47, a substantial increase from ¥895,525.48 in the previous year[128].

Financial Performance - Revenue for the first quarter reached ¥126,234,428.13, a significant increase of 326.33% compared to ¥29,609,223.32 in the same period last year[8] - Net profit attributable to shareholders was ¥16,424,797.92, up 655.62% from ¥2,173,685.37 year-on-year[8] - Basic earnings per share rose to ¥0.0324, reflecting a 511.32% increase from ¥0.0053 in the previous year[8] - Total operating revenue increased by 96.63 million yuan, a growth of 326.33%, primarily due to the consolidation of Jinsha Pharmaceutical and business growth[19] - Net profit increased by 14.25 million yuan, a rise of 655.62%, driven by the consolidation of Jinsha Pharmaceutical and business growth[19] - The net profit attributable to shareholders for the first half of 2014 is expected to be between 34 million and 35 million RMB, representing a year-on-year increase of approximately 374.54% to 360.98%[33] - The significant increase in net profit is attributed to rapid growth in the existing main business, the addition of new pharmaceutical distribution business, and the acquisition of 100% equity in Jinsan Pharmaceutical, which was consolidated into the financial statements starting November 2013[33] Assets and Investments - Total assets at the end of the reporting period were ¥948,903,168.65, an increase of 3.25% from ¥919,003,084.87 at the end of the previous year[8] - Long-term equity investments increased by ¥6,682,600, representing a 100% rise due to the acquisition of 45% equity in Guangdong Huqingyuan Biotechnology Co., Ltd.[18] Cash Flow and Operating Activities - The company reported a net cash flow from operating activities of ¥2,501,159.05, a 9.95% increase from ¥2,274,856.31 in the previous year[8] - Cash received from sales of goods and services increased by 57.13 million yuan, up 102.66%, mainly due to the consolidation of Jinsha Pharmaceutical and business growth[20] - Cash received from other operating activities rose by 4.79 million yuan, a staggering increase of 4532.29%, primarily due to the consolidation of Jinsha Pharmaceutical[20] - Cash paid for employee compensation increased by 17.92 million yuan, a rise of 446.30%, mainly due to the consolidation of Jinsha Pharmaceutical[22] - Cash paid for various taxes increased by 18.38 million yuan, an increase of 683.23%, primarily due to the consolidation of Jinsha Pharmaceutical and business growth[22] - Cash paid for the acquisition of fixed assets and other long-term assets increased by 12.06 million yuan, a rise of 736.74%, mainly due to continued investment in Jinsha Pharmaceutical's second-phase project[22] - Cash received from the net amount of acquiring subsidiaries increased by 6.75 million yuan, a 100% increase, mainly due to the transfer payment for acquiring 45% equity of Guangdong Huqingyuan Biotechnology Co., Ltd.[23] - Cash received from borrowings increased by 9.30 million yuan, a 100% increase, primarily due to new bank loans[23] Shareholder Information - The total number of shareholders at the end of the reporting period was 15,672[12] - The company engaged in a repurchase agreement involving 1,297,725 shares, with 332,700 shares repurchased during the reporting period[15] - The share repurchase price is set at 8.31 CNY per share, with adjustments based on stock distribution methods such as bonus shares or stock splits[29] Commitments and Legal Matters - The company will conduct impairment testing on its equity in Jinsan Pharmaceutical at the end of the compensation period, with the impairment amount calculated based on the difference between the equity valuation and the compensation amount[29] - The compensation obligations of the shareholders are defined, with cash compensation required if the shares held are insufficient to cover the compensation amount[29] - The company has committed to avoiding competition with Jinsan Pharmaceutical and ensuring fair transactions with related parties[30] - The commitment letter from shareholders includes a promise not to engage in competing businesses during their tenure as shareholders[30] - The company will ensure that any unavoidable transactions with related parties are conducted on an equal and fair basis[30] - The impairment testing results will be audited by an accounting firm, and the board of directors will provide opinions on the findings[29] - The compensation amount will be calculated based on the performance of Jinsan Pharmaceutical and disclosed in a special audit report[29] - The company emphasizes the importance of maintaining the legal rights and interests of its subsidiaries and shareholders[30] - The commitment letter has legal binding effects, ensuring compensation for any economic losses caused by violations of the commitments[30] Liabilities and Financial Obligations - Short-term borrowings increased by ¥9,300,000, a 62.00% rise, primarily due to new bank loans[18] - Accounts payable rose by ¥15,397,100, an increase of 94.43%, attributed to business growth[18]