Financial Performance - Net profit attributable to shareholders was CNY 31,523,068.60, an increase of 0.37% year-on-year[7]. - Operating revenue for the reporting period was CNY 210,165,433.40, representing a growth of 4.21% compared to the same period last year[7]. - Basic earnings per share were CNY 0.0626, reflecting a slight increase of 0.32% compared to the previous year[7]. - The weighted average return on equity was 2.01%, a decrease of 0.14% from the previous year[7]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 24,070,607.76, a decrease of 18.44% year-on-year[7]. - The total profit for the third quarter was CNY 30,897,974.75, compared to CNY 37,469,661.10 in the same quarter last year, indicating a decline of approximately 17.6%[44]. - The net profit for the third quarter was CNY 31,523,068.60, slightly up from CNY 31,405,807.94 year-over-year, indicating a stable performance[44]. - The comprehensive income totalled CNY 27,945,659.86, down from CNY 28,676,195.09 in the previous year, showing a decrease of about 2.5%[45]. - The total profit for the third quarter was CNY 95,303,572.66, down 23.5% from CNY 124,501,789.52 year-over-year[52]. Cash Flow - The net cash flow from operating activities was CNY 81,067,442.42, an increase of 19.66% year-on-year[7]. - The net cash flow from operating activities was 118,799,257.13 CNY, a decrease of 1.04% compared to 121,055,667.96 CNY in the previous period[62]. - The total cash inflow from investment activities was 10,216,295.00 CNY, while cash outflow was 29,896,498.90 CNY, resulting in a net cash flow of -19,680,203.90 CNY, an improvement from -41,553,427.00 CNY in the previous period[63]. - The net cash flow from financing activities decreased by CNY 46,579,960.34, a decline of 98.37%, mainly due to cash dividends paid during the period[15]. - The net cash flow from financing activities was -93,931,660.42 CNY, compared to -47,351,700.08 CNY in the previous period, indicating increased cash outflows for debt repayment and interest payments[63]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,838,835,275.85, a decrease of 2.34% compared to the end of the previous year[7]. - The company's current assets totaled CNY 529,075,303.09, down from CNY 593,861,751.70 at the end of 2019, indicating a decline of approximately 10.9%[33]. - The total liabilities of the company were not explicitly stated, but the decrease in current liabilities can be inferred from the reduction in short-term borrowings and accounts payable[34]. - Total liabilities amounted to CNY 352,928,115.87, with current liabilities at CNY 336,524,092.92 and non-current liabilities at CNY 16,404,022.95[72]. - The total equity attributable to shareholders reached CNY 1,529,977,688.84, with retained earnings of CNY 733,653,864.39[72]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 24,558[11]. - The largest shareholder, Xinjiang Hansen Equity Investment Management Partnership, holds 42.13% of the shares[11]. Investments and Expenses - The company reported non-recurring gains of CNY 8,097,431.74 during the reporting period[8]. - Research and development expenses increased to CNY 8,680,853.06 from CNY 6,294,832.50[43]. - Research and development expenses increased to CNY 21,951,717.63, up 10.2% from CNY 19,926,110.91 year-over-year[52]. - The company reported an increase in investment income to CNY 12,729,073.10 from CNY 10,708,645.42, representing a growth of about 18.8% year-over-year[48]. Other Financial Metrics - Other receivables increased by CNY 10,042,553.08, a growth of 597.77%, mainly due to loans to Changsha Sanyin Real Estate Development Co., Ltd.[15]. - Other current assets decreased by CNY 25,897,445.17, a decline of 65.31%, primarily due to reduced financial product purchases by Yunnan Yongzitang Pharmaceutical Co., Ltd.[15]. - Financial expenses decreased by CNY 3,022,500.64, a decline of 37.48%, due to reduced bank loans and corresponding interest expenses.[15]. - The company experienced a credit impairment loss of CNY 1,042,850.64, compared to a gain of CNY 583,998.45 in the previous year[52].

Group 1: Event Details - The event is organized by the China Securities Regulatory Commission Hunan Supervision Bureau, Hunan Listed Companies Association, and Shenzhen Panorama Network Co., Ltd. [1] - The online investor reception day will take place on September 11, 2020, from 15:00 to 17:00 [1] - Investors can participate via the "Panorama Roadshow" website [1] Group 2: Company Commitment - Hunan Hansen Pharmaceutical Co., Ltd. guarantees the announcement's content is true, accurate, and complete, with no false records or significant omissions [1] - The company's board secretary and securities affairs representatives will engage in online Q&A with investors [1] Group 3: Investor Engagement - The company encourages widespread participation from investors [1]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥311,730,353.40, a decrease of 25.69% compared to ¥419,493,223.72 in the same period last year[17]. - The net profit attributable to shareholders was ¥53,230,273.07, down 25.97% from ¥71,900,694.70 in the previous year[17]. - The net profit after deducting non-recurring gains and losses was ¥52,585,302.17, a decrease of 20.62% compared to ¥66,248,160.66 in the same period last year[17]. - The net cash flow from operating activities was ¥37,731,814.71, down 29.22% from ¥53,307,369.59 in the previous year[17]. - The basic earnings per share were ¥0.1058, a decline of 25.96% from ¥0.1429 in the same period last year[17]. - The company reported a significant increase in cash flow from investment activities, with a net cash flow of -¥7,340,218.97, reflecting a 79.74% increase compared to the previous period[43]. - The total comprehensive income for the first half of 2020 was CNY 49,994,258.63, down 23.2% from CNY 65,140,013.47 in the same period of 2019[144]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,813,897,322.65, a decrease of 3.66% from ¥1,882,905,804.71 at the end of the previous year[17]. - Total liabilities decreased from ¥352,928,115.87 to ¥264,999,812.25, a decline of about 25%[131]. - Total equity increased from ¥1,529,977,688.84 to ¥1,548,897,510.40, reflecting an increase of approximately 1.2%[132]. - Cash and cash equivalents decreased from ¥116,610,510.91 to ¥85,847,084.20, representing a decrease of about 26.4%[129]. - Accounts receivable decreased from ¥274,774,541.22 to ¥233,350,999.34, a reduction of approximately 15.1%[129]. - Inventory increased from ¥85,422,380.74 to ¥96,175,337.77, an increase of about 12.8%[129]. Operational Strategies - The company operates in the pharmaceutical manufacturing industry, focusing on the research, production, and sales of traditional Chinese medicine, chemical drugs, and medical preparations, with gradual expansion into the health and medical care sectors[25]. - The company employs a market-oriented production model, adjusting production plans monthly based on sales forecasts and inventory levels to ensure stable product supply[28]. - The company’s procurement strategy involves strict quality control and cost management, ensuring that raw materials are sourced from qualified suppliers while monitoring market trends[28]. - The marketing strategy includes a diversified approach with hospital promotion, grassroots promotion, and distribution channels, adapting to industry changes and enhancing sales effectiveness[29]. - The company plans to continue expanding into the health and medical care sectors, aiming for diversified growth[33]. Product Performance - The company reported a 114.27% year-on-year increase in revenue for the Tianma Xingnao capsule, which has been included in chronic disease directories in certain provinces[29]. - The company’s main product, Si Mo Tang oral solution, is the only compound gastrointestinal motility traditional Chinese medicine product on the market, showing significant therapeutic effects, especially in post-operative gastrointestinal recovery[29]. - Revenue from Si Mo Tang oral liquid decreased by 38.67% year-on-year, mainly due to the impact of the pandemic[49]. - Revenue from Ginkgo Biloba capsules decreased by 35.74% year-on-year, also primarily due to pandemic-related sales impacts[49]. Risk Management - The company faces significant risks including policy changes in the pharmaceutical industry, reliance on a single leading product, and raw material procurement risks[72][73]. - The leading product, Si Mo Tang oral solution, accounts for nearly 50% of the company's revenue, indicating a high dependency on this product[72]. - The company plans to enhance product quality control and safety training to mitigate risks associated with production and environmental standards[74]. - The company aims to optimize product structure and expand market reach to maintain competitive advantages and reduce reliance on single products[74]. Corporate Governance - The company has not encountered any major changes in the feasibility of the committed investment projects[62]. - The company has made commitments regarding share transfer limitations, stating that shareholders will not transfer more than 25% of their total shares annually during their tenure[80]. - The company has committed to ensuring the legality and fairness of related party transactions, protecting the interests of minority shareholders[81]. - The company has not faced any media scrutiny during the reporting period[84]. Future Outlook - The company plans to continue focusing on market expansion and new product development to enhance future growth prospects[143]. - The company is actively exploring potential mergers and acquisitions to strengthen its market position[168]. - The company has set a performance guidance for the next quarter, aiming for a revenue growth of approximately 10%[160].

Financial Performance - The company's operating revenue for 2019 was ¥887,490,963.28, a decrease of 3.74% compared to ¥921,949,823.75 in 2018[16] - The net profit attributable to shareholders of the listed company was ¥162,377,707.21, an increase of 10.06% from ¥147,536,835.11 in the previous year[16] - The net cash flow from operating activities decreased by 25.19% to ¥167,788,107.51 from ¥224,290,282.23 in 2018[16] - Basic earnings per share increased to ¥0.3227, up 10.06% from ¥0.2932 in 2018[16] - Total assets at the end of 2019 were ¥1,882,905,804.71, representing a 4.70% increase from ¥1,798,360,607.85 at the end of 2018[17] - The net assets attributable to shareholders of the listed company rose by 12.22% to ¥1,529,977,688.84 from ¥1,363,344,314.12 in 2018[17] - The company reported a quarterly revenue of ¥266,317,591.14 in Q4 2019, the highest among the four quarters[21] - The company’s weighted average return on equity was 11.24%, slightly down from 11.41% in 2018[16] - The net profit after deducting non-recurring gains and losses was ¥154,338,124.68, an increase of 10.38% from ¥139,819,750.12 in 2018[16] - The company achieved a total profit of CNY 188,784,963.71 for the year 2019, with a net profit attributable to shareholders of CNY 162,377,707.21[98] Cash Flow and Investments - Cash and cash equivalents increased by 33.89 million yuan, a growth of 40.98% from the previous year[33] - The company’s cash flow from operating activities decreased by 25.19% to CNY -56.50 million, mainly due to a reduction in cash received from sales[46] - The company’s cash and cash equivalents increased significantly due to a reduction in bank loan repayments, with financing cash flow net increase of 19.90%[47] - The company reported a significant increase in investment activity cash inflow by 4,651.33% to ¥20,474,209.66, while cash outflow decreased by 40.73% to ¥75,710,585.59[66] - The total amount of long-term equity investments rose to ¥578,687,218, representing 30.73% of total assets, an increase of 1.01% from the previous year[70] Research and Development - Research and development expenses totaled CNY 33.62 million, with five products undergoing consistency evaluation, including sodium bicarbonate tablets which passed the evaluation in March 2019[42] - The company’s research and development expenses were impacted by the decision to capitalize previously incurred development costs[72] - The number of R&D personnel decreased by 22.55% to 158, while the proportion of R&D personnel in total staff decreased slightly to 10.12%[64] Market and Product Strategy - The company is engaged in the pharmaceutical manufacturing industry, focusing on the R&D, production, and sales of traditional Chinese medicine, chemical drugs, and medical preparations[26] - Key products include traditional Chinese medicine formulations such as Si Mo Decoction Oral Liquid and Ginkgo Leaf Capsules, which target various health issues[26][27] - The company is gradually expanding into the health and wellness sectors, indicating a strategic shift towards broader market opportunities[26] - The company plans to continue expanding into the health and medical care sectors, leveraging its diversified product portfolio[35] - The marketing strategy includes five categories: hospital promotion, grassroots promotion, chain promotion, commercial promotion, and controlled marketing[36] Corporate Governance and Compliance - The company has established a robust internal control system to protect the rights of shareholders and creditors, ensuring equal treatment for all shareholders, especially minority investors[129] - The company maintains a commitment to corporate governance and transparency through its independent directors and supervisory board[164] - The company has implemented a robust internal audit system to supervise daily operations and major related transactions[179] - The company emphasizes transparency and timely information disclosure, ensuring all investors are treated equally[178] Shareholder Information - The proposed cash dividend for 2019 is CNY 0.75 per share, amounting to a total distribution of CNY 37,740,000, which represents 23.24% of the net profit[94][96] - The company plans to maintain a cash dividend policy that ensures at least 30% of the average distributable profit over the last three years is distributed to shareholders[98] - The company has a total of 503,200,000 shares outstanding as of December 31, 2019, following a capital increase from retained earnings in 2018[94][98] - The largest shareholder, Xinjiang Hansen Equity Investment Management Co., Ltd., holds 40.14% of the shares, totaling 201,976,189 shares[146] Risk Management - The company faces risks related to policy changes in the pharmaceutical industry, reliance on a single product, and potential raw material supply shortages[86] - The company will strengthen its internal control systems and governance to mitigate risks and ensure compliance with industry regulations[85] Social Responsibility - The company actively engages in social responsibility initiatives, contributing to local economic development and participating in community welfare activities[131] - The company is committed to environmental protection and has improved its management level to meet industry standards, confirming it is not listed as a key pollutant unit[131][133]

Financial Performance - The company's revenue for Q1 2020 was ¥174,351,660.96, representing a decrease of 18.48% compared to ¥213,882,410.43 in the same period last year[7] - Net profit attributable to shareholders was ¥36,943,574.88, down 8.15% from ¥40,221,685.17 year-on-year[7] - Basic earnings per share decreased to ¥0.0734, down 8.14% from ¥0.0799 in the same period last year[7] - Total operating revenue for Q1 2020 was CNY 174,351,660.96, a decrease from CNY 213,882,410.43 in the previous period[42] - Net profit for Q1 2020 was CNY 36,943,574.88, down from CNY 40,221,685.17 in the same period last year, representing a decline of approximately 5.6%[44] - Earnings per share (EPS) for Q1 2020 was CNY 0.0734, compared to CNY 0.0799 in the previous year[45] - The total comprehensive income for Q1 2020 was CNY 49,685,993.22, compared to CNY 41,059,904.38 in the previous year, indicating overall growth in profitability[44] - The total comprehensive income for the first quarter of 2020 was CNY 41,927,805.14, compared to CNY 41,536,352.35 in the same period last year, showing a slight increase[49] Cash Flow - The net cash flow from operating activities was negative at ¥5,782,168.59, a decline of 146.51% compared to ¥12,431,872.48 in the previous year[7] - The net cash flow from operating activities decreased by CNY 18,214,041.07, a decline of 146.51%, attributed to a decrease in sales revenue and customer payments[16] - Cash inflow from operating activities totaled CNY 196,540,859.63, while cash outflow was CNY 202,323,028.22, resulting in a net cash flow deficit[52] - The net cash flow from financing activities increased by CNY 31,440,537.80, a growth of 1067.69%, primarily due to an increase in bank borrowings[17] - The net cash flow from financing activities was CNY 28,495,809.77, a turnaround from a negative cash flow of CNY -2,944,728.03 in the previous year[56] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,941,265,527.88, an increase of 3.10% from ¥1,882,905,804.71 at the end of the previous year[7] - The company's current assets totaled CNY 634,347,892.43 as of March 31, 2020, compared to CNY 593,861,751.70 at the end of 2019, indicating an increase of about 6.8%[32] - The total liabilities of the company were CNY 361,601,845.82 as of March 31, 2020, compared to CNY 352,928,115.87 at the end of 2019, showing a rise of about 2.4%[34] - The company's equity attributable to shareholders increased to CNY 1,579,663,682.06 from CNY 1,529,977,688.84, representing a growth of approximately 3.2%[36] Shareholder Information - The total number of shareholders at the end of the reporting period was 18,952[11] - The largest shareholder, Xinjiang Hansen Equity Investment Management Partnership, holds 40.14% of the company's shares[12] Research and Development - Research and development expenses decreased by CNY 3,722,197.56, a decline of 41.79%, due to reduced R&D investments during the period[16] - Research and development expenses decreased to CNY 5,184,895.94 from CNY 8,907,093.50, suggesting a potential shift in R&D focus or efficiency[43] Other Financial Metrics - The weighted average return on equity was 2.39%, down from 2.91% in the same period last year, a decrease of 0.52%[7] - The company reported non-operating income of ¥671,882.91 from government subsidies, while other non-operating expenses totaled -¥480,505.44[8] - Other comprehensive income increased by CNY 12,742,418.34, a growth of 255.49%, mainly due to the increase in other comprehensive income from Hunan Sanxiang Bank Co., Ltd.[16] - The company reported an investment income of CNY 11,356,632.03, up from CNY 8,972,558.70, indicating improved returns from investments[43] Operational Changes - The company implemented new revenue and leasing standards starting from 2020, with no adjustments made to prior period data[63] - The company has not reported any new product launches or significant market expansion strategies in the current quarter[49]

Financial Performance - Operating revenue for the reporting period was ¥201,680,148.42, down 13.71% compared to the same period last year[7]. - Net profit attributable to shareholders of the listed company was ¥31,405,807.94, representing a 22.29% increase year-on-year[7]. - Net profit attributable to shareholders after deducting non-recurring gains and losses was ¥29,513,912.57, up 20.21% year-on-year[7]. - Basic earnings per share were ¥0.0624, reflecting a 22.35% increase year-on-year[7]. - The weighted average return on net assets was 2.15%, an increase of 0.16% compared to the previous year[7]. - Total operating revenue for Q3 2019 was CNY 201,680,148.42, a decrease from CNY 233,713,563.26 in the previous period[43]. - Net profit for Q3 2019 reached CNY 31,405,807.94, compared to CNY 25,680,673.16 in the same period last year, representing a growth of approximately 22.4%[44]. - Total operating revenue for the period was CNY 621,173,372.14, a decrease of 6.1% compared to CNY 661,846,960.70 in the previous period[51]. - Net profit for the period reached CNY 103,306,502.64, representing an increase of 19.6% from CNY 86,361,859.83 in the same period last year[52]. - Total comprehensive income for the period was CNY 97,521,884.33, an increase of 13.0% from CNY 86,361,859.83 year-on-year[53]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,895,741,872.63, an increase of 5.42% compared to the end of the previous year[7]. - Total liabilities decreased to ¥424,583,729.78 from ¥435,016,293.73, a reduction of about 2.9%[35]. - Total current assets increased to ¥572,971,822.25 as of September 30, 2019, up from ¥490,941,226.93 at the end of 2018, representing a growth of approximately 16.3%[34]. - Total liabilities as of Q3 2019 amounted to CNY 389,104,482.02, slightly up from CNY 386,898,262.77[41]. - The company's total liabilities remained stable at 435,016,293.73[67]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 11,299[11]. - The largest shareholder, Xinjiang Hansen Equity Investment Management Partnership, held 40.14% of the shares, amounting to 201,976,189 shares[11]. - The total number of shares increased by 207,200,000 shares, due to a capital reserve conversion of 20,720,000 shares based on the 2018 annual shareholders' meeting resolution[17]. - Shanghai Fosun has cumulatively reduced its holdings by 14,371,096 shares, accounting for 4.85510% of the total shares, which may impact future governance and control[21]. Cash Flow - Net cash flow from operating activities was ¥67,748,298.37, an increase of 29.09% compared to the same period last year[7]. - The net increase in cash and cash equivalents was RMB 22,387,533.15, a growth of 229.31%, mainly due to changes in operating, investing, and financing activities[19]. - The net cash flow from operating activities was CNY 121,055,667.96, down from CNY 150,232,152.80, reflecting a decrease of about 19.4%[59]. - Cash inflow from operating activities totaled CNY 677,792,840.37, while cash outflow was CNY 556,737,172.41, resulting in a net cash flow of CNY 121,055,667.96[59]. Investments and Income - Investment income increased by RMB 26,642,753.44, a growth of 347.85%, mainly due to increased investment income from Hunan Sanxiang Bank[17]. - Investment income for Q3 2019 was CNY 10,708,645.42, compared to CNY 6,577,771.55 in the previous year, reflecting an increase of about 62.5%[44]. - Investment income significantly increased to CNY 34,301,968.90, compared to CNY 7,659,215.46 in the previous year, marking a growth of 348.5%[51]. Corporate Governance and Compliance - The company is actively managing its corporate governance with recent resignations of key personnel, including the securities affairs representative and a vice president, which may affect strategic direction[21]. - The company confirmed that there were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[27]. - The company has a long-term commitment to comply with regulations regarding related party transactions to protect the interests of minority shareholders[24]. - The company has committed to ensuring that no funds are occupied through borrowing or other means[24]. - The company has not reported any overdue or unrecovered amounts in its entrusted financial management activities[29]. Research and Development - Research and development expenses for Q3 2019 were CNY 6,294,832.50, down from CNY 9,910,683.19 in the same period last year, indicating a reduction of approximately 36.5%[43]. - Research and development expenses decreased to CNY 19,926,110.91, down 26.5% from CNY 27,163,256.95 in the previous period[51]. Regulatory and Certification - The company received the GMP certificate from the Hunan Provincial Drug Administration for tablets, hard capsules, and oral liquids, which is a renewal of the certification[20]. - The company’s subsidiary, Yunnan Yongzitang Pharmaceutical Co., Ltd., obtained the GMP certificate for hard capsules, tablets, granules, and traditional Chinese medicine extraction, enhancing its production capabilities[20]. - The company has implemented new financial instrument standards and revenue recognition standards starting from 2019, which may affect financial reporting[64].

| --- | --- | --- | |------------|------------------------------------------------------------------------|--------------------------| | 证券代码： | 002412 证券简称：汉森制药 | 公告编号： 2019-040 | | | 湖南汉森制药股份有限公司 | | | | 关于参加 2019 年湖南辖区上市公司投资者 | | | | 网上集体接待日活动的公告 | | | | 本公司及全体董事保证公告内容真实、准确和完整，不存在虚假记载、误 | | | | 导性陈述或者重大遗漏。 | | | | 为进一步加强与投资者的互动交流，切实提高上市公司透明度和治理水平， | | | | 湖南汉森制药股份有限公司（以下简称"公司"）将参加由中国证券监督管理委 | | | | 员会湖南证监局指导、湖南省上市公司协会与深圳市全景网络有限公司联合举办 | | | 的"2019 | 年湖南辖区上市公司投资者网上集体接待日"活动，现将有关事项公 | | | 告如下： | | | | | 本次投资 ...

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 419,493,223.72, a decrease of 2.02% compared to CNY 428,133,397.44 in the same period last year[16]. - The net profit attributable to shareholders of the listed company increased by 18.49% to CNY 71,900,694.70, up from CNY 60,681,186.67 in the previous year[16]. - Basic earnings per share rose by 18.49% to CNY 0.1429, compared to CNY 0.1206 in the previous year[16]. - The total operating revenue for the reporting period was CNY 419,493,223.72, a decrease of 2.02% compared to CNY 428,133,397.44 in the same period last year[43]. - The pharmaceutical industry accounted for CNY 418,363,614.54, representing 99.73% of total operating revenue, with a decrease of 2.21% year-on-year[43]. - Investment income increased significantly to CNY 23,593,323.48, up 2,081.65% from CNY 1,081,443.91 in the previous year, primarily due to increased investment income from Hunan Sanxiang Bank[43][47]. - Other income rose to CNY 5,898,659.90, reflecting a growth of 112.81% compared to CNY 2,771,760.04, mainly due to increased government subsidies[43][48]. - The company reported a total profit of CNY 87,032,128.42 for the first half of 2019, an increase of 21.5% from CNY 71,639,512.70 in the first half of 2018[142]. - The company’s total comprehensive income for the first half of 2019 was CNY 68,845,689.24, compared to CNY 60,681,186.67 in the first half of 2018, reflecting a growth of 13.5%[143]. Cash Flow and Liquidity - The net cash flow from operating activities decreased significantly by 45.47% to CNY 53,307,369.59, compared to CNY 97,751,690.22 in the same period last year[16]. - The company’s cash and cash equivalents decreased by 34.79%, with a year-end balance of 28,773,535.63 yuan, attributed to the purchase of financial products and repayment of bank loans[28]. - The company’s cash and cash equivalents decreased to ¥53,942,204.54 from ¥82,715,740.17 at the end of 2018, representing a decline of approximately 34.8%[131]. - The net cash flow from investing activities was -¥36,228,146.66, worsening from -¥21,436,280.61 in the first half of 2018[152]. - Cash inflow from financing activities was ¥30,099,213.04, an increase from ¥20,098,729.60 in the same period last year[152]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,848,425,171.77, reflecting a 2.78% increase from CNY 1,798,360,607.85 at the end of the previous year[16]. - The total liabilities at the end of the reporting period were 670 million, with a debt-to-equity ratio of 0.78[160]. - The total current liabilities decreased to CNY 388,915,300.46 from CNY 417,376,429.77, a decrease of approximately 6.8%[133]. - The company’s retained earnings increased to CNY 662,858,049.11 from CNY 580,665,410.01, reflecting a growth of about 14.1%[134]. - The total amount of raised funds was ¥657,292,400.00, with no new investments made during the reporting period[57]. Research and Development - Research and development investment totaled 13.63 million RMB, down 20.99% from the previous year[40]. - The company has a strong focus on research and development, particularly in the field of traditional Chinese medicine, to meet market demands[171]. - The company aims to enhance its operational efficiency through technological advancements and process optimization[165]. Market and Product Development - The company operates in the pharmaceutical manufacturing industry, focusing on traditional Chinese medicine, chemical drugs, and medical preparations, with a gradual expansion into the health and medical care sectors[24]. - The company aims to leverage its product structure advantages to enhance its core competitiveness as the medical insurance system and drug classification management are promoted[30]. - The company plans to expand its market presence and invest in new product development in the upcoming quarters[159]. - The company aims to improve its operational efficiency through strategic partnerships and potential acquisitions in the healthcare sector[159]. Shareholder and Capital Management - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company executed a stock repurchase agreement involving 5.9 million unrestricted shares with Guotai Junan Securities[115]. - The company’s capital distribution plan was approved at the 2018 annual general meeting, enhancing shareholder value through share increases[109]. - The total share capital increased from 296,000,000 shares to 503,200,000 shares following a capital reserve conversion plan, distributing 7 new shares for every 10 shares held[109]. Compliance and Governance - The company has guaranteed strict compliance with laws and regulations regarding related party transactions to ensure fairness and legality[81]. - There were no significant litigation or arbitration matters during the reporting period[86]. - The financial statements comply with the requirements of the enterprise accounting standards, reflecting the company's financial position, operating results, and cash flows accurately[179]. Risk Management - The company faces risks related to industry policies, product concentration, raw material procurement, and quality control, which could adversely affect its performance[72][73]. - The company aims to strengthen product quality control and safety management to mitigate risks associated with production and environmental standards[74].

Financial Performance - The company's operating revenue for 2018 was ¥921,949,823.75, representing an increase of 11.09% compared to ¥829,937,833.67 in 2017[16] - The net profit attributable to shareholders for 2018 was ¥147,536,835.11, a growth of 35.60% from ¥108,806,776.42 in the previous year[16] - The net cash flow from operating activities reached ¥224,290,282.23, marking a significant increase of 90.33% compared to ¥117,841,942.52 in 2017[16] - Basic earnings per share for 2018 were ¥0.4984, up 35.58% from ¥0.3676 in 2017[16] - The total assets at the end of 2018 amounted to ¥1,798,360,607.85, reflecting a 5.76% increase from ¥1,700,409,524.23 at the end of 2017[17] - The net assets attributable to shareholders increased by 11.82% to ¥1,363,344,314.12 from ¥1,219,231,337.67 in 2017[17] - The weighted average return on equity for 2018 was 11.41%, an increase of 2.63% from 8.78% in 2017[16] - The company achieved total operating revenue of 921.95 million yuan in 2018, an increase of 11.09% compared to the previous year[30] - Operating profit reached 166.23 million yuan, reflecting a growth of 27.19% year-over-year[30] - Total profit amounted to 165.89 million yuan, marking a 30.37% increase from the prior year[30] Business Strategy and Operations - The company is engaged in the research, production, and sales of traditional Chinese medicine, chemical drugs, and medical preparations[26] - The company is gradually expanding into the health and medical care sectors[26] - The company employs a market-oriented production model, adjusting production plans based on sales forecasts and market conditions[31] - The marketing strategy includes a comprehensive approach with hospital promotion, grassroots promotion, and chain store promotion[31] - The increase in profit was attributed to adjustments in sales strategy and improved gross margin, along with increased investment income from Hunan Sanxiang Bank[30] - The company has established a diversified business structure, including traditional Chinese medicine, chemical drugs, and medical preparations, and is entering the health and wellness sector[35] - The company has implemented a marketing strategy that includes hospital promotion, grassroots promotion, and chain promotion, creating a nationwide marketing network[36] - The company completed technical upgrades and passed GMP certification for its production facilities, enhancing production efficiency and entering a new stage of intelligent manufacturing[39] Research and Development - R&D expenses increased by 43.52% to 38.05 million yuan, primarily due to investments in drug consistency evaluations[47] - The company invested ¥38,052,920.33 in R&D, which accounted for 4.13% of operating revenue, up from 3.72% in the previous year[64] - The company had nine ongoing research projects during the reporting period, enhancing its core competitiveness[64] - The company aims to enhance its product offerings by advancing the consistency evaluation of four products, including sodium bicarbonate tablets, to support market expansion[93] - The company is investing 50 million RMB in research and development to innovate new drug formulations[170] Risk Management - The company has outlined potential risks in its future development outlook, urging investors to remain aware of investment risks[4] - The company faces risks related to raw material procurement, particularly due to the scarcity of wild medicinal resources and potential price increases, which could squeeze profit margins[95] - The company acknowledges the management risks associated with rapid expansion and is focused on effective management of subsidiaries and resources[97] - The company is actively monitoring industry policy changes to adjust its strategies accordingly, aiming to maintain competitive advantages[98] Shareholder and Governance - The company plans to distribute a capital reserve bonus of 7 shares for every 10 shares held, with no cash dividends declared[4] - The company has committed to not transferring more than 25% of its shares during its tenure and not exceeding 50% of its total shares within two months after leaving office[107] - The company has pledged to use raised funds for risk investments within 12 months and to ensure that any surplus funds are permanently used to supplement working capital or repay bank loans[109] - The company has ensured compliance with regulations regarding non-operating fund occupation by major shareholders and their affiliates, confirming no such occurrences during the reporting period[110] - The company has committed to maintaining the legality and reasonableness of related party transactions, ensuring no harm to the interests of other shareholders[108] Environmental and Social Responsibility - The company has established a comprehensive environmental management system and has not encountered any major environmental pollution incidents[140] - The wastewater treatment system is capable of processing up to 500m³/d, meeting the national discharge standards[140] - The company has made significant contributions to local economic development through tax payments and social welfare activities[137] - The company maintains a strong focus on employee rights protection, providing a safe working environment and regular health check-ups[135] Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion RMB[170] - New product development initiatives are underway, with three new drugs expected to enter the market in the next 12 months[170] - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share in that region[170] - A strategic acquisition of a local pharmaceutical company is anticipated to enhance the company's product portfolio and distribution network[170]

Financial Performance - The company's operating revenue for Q1 2019 was ¥213,882,410.43, a decrease of 5.44% compared to ¥226,177,460.31 in the same period last year[7] - Net profit attributable to shareholders was ¥40,221,685.17, representing a growth of 10.52% from ¥36,393,214.40 year-on-year[7] - The net profit after deducting non-recurring gains and losses was ¥38,655,881.83, an increase of 6.91% compared to ¥36,158,369.82 in the previous year[7] - The basic earnings per share for the period was ¥0.1359, up 10.49% from ¥0.1230 in the same period last year[7] - Total operating revenue decreased to ¥213,882,410.43 from ¥226,177,460.31, representing a decline of approximately 5.7% year-over-year[36] - Total operating costs reduced to ¥177,711,186.75 from ¥181,522,758.30, a decrease of about 2.2% year-over-year[36] - Net profit increased to ¥40,221,685.17 compared to ¥36,393,214.40, reflecting a growth of approximately 10.5% year-over-year[39] - Operating profit rose to ¥46,454,212.33 from ¥42,610,783.21, marking an increase of around 6.5% year-over-year[38] - The company reported a total profit of ¥46,953,055.54, compared to ¥42,520,086.64, indicating an increase of about 10.2% year-over-year[38] - Total comprehensive income reached ¥41,059,904.38, up from ¥36,393,214.40, reflecting an increase of approximately 12.3% year-over-year[39] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,835,796,379.47, reflecting a 2.08% increase from ¥1,798,360,607.85 at the end of the previous year[7] - Net assets attributable to shareholders increased by 3.01% to ¥1,404,404,218.50 from ¥1,363,344,314.12 at the end of the previous year[7] - The company's total liabilities decreased slightly to CNY 431,392,160.97 from CNY 435,016,293.73, a reduction of about 0.6%[29] - The total owner's equity increased to CNY 1,404,404,218.50, up from CNY 1,363,344,314.12, reflecting a growth of approximately 3.0%[30] - The total liabilities and owner's equity totaled CNY 1,793,078,259.69, up from CNY 1,743,590,919.39, indicating an increase of about 2.8%[35] Cash Flow - The company reported a net cash flow from operating activities of ¥12,431,872.48, a decrease of 3.49% compared to ¥12,881,994.23 in the same period last year[7] - The net cash flow from operating activities for Q1 2019 was CNY 22,554,455.32, a significant increase from CNY 8,096,970.63 in Q1 2018, representing a growth of approximately 178.5%[50] - Total cash inflow from operating activities was CNY 173,662,216.42, compared to CNY 167,965,593.26 in the previous year, indicating a year-over-year increase of about 3.9%[50] - The total cash outflow from operating activities was CNY 151,107,761.10, down from CNY 159,868,622.63 in Q1 2018, reflecting a decrease of approximately 5.5%[50] - Cash flow from investing activities showed a net outflow of CNY 5,964,233.54, slightly improved from CNY 6,073,151.70 in the same period last year[50] - Cash flow from financing activities resulted in a net outflow of CNY 2,944,728.03, compared to a net outflow of CNY 3,648,219.97 in Q1 2018, indicating a reduction in cash outflow by about 19.3%[51] - The ending balance of cash and cash equivalents was CNY 61,406,419.61, an increase from CNY 47,954,155.47 at the end of Q1 2018, representing a growth of approximately 28.1%[51] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 10,094[10] - The largest shareholder, Xinjiang Hansen Equity Investment Management Partnership, held 42.13% of the shares, totaling 124,709,523 shares[10] Other Financial Metrics - The weighted average return on equity was 2.91%, slightly down from 2.94% in the previous year[7] - Research and development expenses increased to ¥8,907,093.50 from ¥7,035,597.72, indicating a rise of approximately 26.6% year-over-year[36] - Investment income increased by 11.38 million yuan, a growth of 472.12%, primarily due to increased long-term equity investment income from Hunan Sanxiang Bank Co., Ltd.[15] - Other income increased by 943,200 yuan, a growth of 256.82%, mainly due to an increase in government subsidies related to daily activities recognized during the reporting period[15] - Other comprehensive income increased by 838,200 yuan, a growth of 78.92%, mainly due to increased other comprehensive income from Hunan Sanxiang Bank Co., Ltd. recognized using the equity method[14] Compliance and Operational Updates - The company received a GMP certificate for tablets, hard capsules, and oral liquids, indicating successful compliance with pharmaceutical manufacturing standards[18] - The company’s subsidiary completed the business registration change, enhancing its operational capabilities in the real estate sector[18] Changes in Assets - Current assets rose to CNY 518,701,436.62, compared to CNY 490,941,226.93, marking an increase of about 5.7%[28] - Long-term equity investments reached CNY 547,384,046.46, up from CNY 537,573,268.55, indicating a growth of approximately 1.5%[28] - Accounts receivable rose to CNY 296,727,743.04 from CNY 251,791,513.17, indicating an increase of approximately 17.8%[32] - Inventory decreased to CNY 40,265,534.57 from CNY 46,054,500.27, a decline of about 12.6%[32] - The company reported a net profit increase in retained earnings to CNY 620,887,095.18 from CNY 580,665,410.01, reflecting a growth of approximately 6.9%[30] Tax and Payments - Tax payable increased by 3.59 million yuan, a growth of 52.18%, primarily due to unremitted corporate income tax at the end of the first quarter[14] - The company reported a decrease in tax payments, with CNY 15,590,560.24 paid in Q1 2019 compared to CNY 18,951,670.35 in Q1 2018, a reduction of approximately 17.5%[50] Product and Technology Updates - The company did not report any significant new product launches or technological advancements during this quarter[52]