Financial Performance - The company's operating revenue for 2019 was ¥730,153,384.04, a decrease of 31.34% compared to ¥1,063,357,911.35 in 2018[15] - The net profit attributable to shareholders was -¥716,058,364.25, showing an improvement of 8.45% from -¥782,170,138.54 in the previous year[15] - The net cash flow from operating activities increased significantly to ¥100,063,464.55, a rise of 1,700.68% compared to ¥5,556,981.71 in 2018[15] - The total assets at the end of 2019 were ¥1,134,527,481.31, down 43.80% from ¥2,018,655,562.47 at the end of 2018[15] - The net assets attributable to shareholders decreased by 44.76% to ¥876,231,983.53 from ¥1,586,313,290.03 in 2018[15] - The basic earnings per share for 2019 was -¥0.89, an improvement of 10.10% from -¥0.99 in 2018[15] - The weighted average return on equity was -58.30%, a decline of 18.20% compared to -40.10% in the previous year[15] - The company reported a net loss of CNY 548,334,719.48 due to goodwill impairment from subsidiaries[78] - The company’s net profit for 2019 was reported as -716,058,364.2, indicating a negative performance[117] Revenue Breakdown - The total operating revenue for the company was ¥730,153,384.04, a year-on-year decrease of 31.34%[40] - The infrared therapy equipment segment generated ¥182,015,389.43, accounting for 24.93% of total revenue, down 4.46% year-over-year[59] - The massage product series saw revenue drop to ¥341,579,878.30, representing 46.78% of total revenue, a decline of 36.92% from the previous year[59] - Air purification series revenue increased significantly by 271.69% to ¥27,321,934.57, up from ¥7,350,666.33 in 2018[59] - Domestic sales accounted for ¥327,985,166.46 (44.92% of total revenue), down 27.29% from ¥451,056,555.07 in 2018[60] - Export sales were ¥402,168,217.58, representing 55.08% of total revenue, a decrease of 34.32% from ¥612,301,356.28 in 2018[60] Strategic Initiatives - The company has outlined potential risks and countermeasures in its future development outlook[4] - The company has invested in health services and life sciences, including projects in traditional Chinese medicine and precision medicine[25] - The company operates under three business models: self-owned brands, ODM, and exclusive agency for international brands[38] - The company has established a comprehensive marketing network combining various sales channels, including e-commerce and physical stores[38] - The company plans to optimize its product and business structure by phasing out low-margin products and focusing on high-potential segments within the health industry[104] - The company will accelerate product development and integrate new technologies to enhance product value and profit margins[105] - The company is actively exploring potential mergers and acquisitions to enhance its market position and operational capabilities[199] Cost Management and Efficiency - The company integrated resources across multiple subsidiaries, optimizing management and reducing operational costs[40] - The company has implemented a series of measures to optimize management and reduce operational costs, enhancing overall efficiency[54] - The company reduced its financial expenses by 59.80% to CNY 1,728,937.67 due to a decrease in bank loans[72] - The company has established a comprehensive performance evaluation system to align employee activities with organizational strategy, improving execution and team vitality[51] Market Conditions and Challenges - The company faced increased market competition and a decline in product gross margins due to trade tensions and economic downturns[40] - The company faces risks from macroeconomic slowdowns, intensified market competition, and the ongoing impact of the COVID-19 pandemic on operations[107] Shareholder and Dividend Policies - The company plans not to distribute cash dividends or issue bonus shares[5] - The company did not distribute cash dividends for the years 2018 and 2019, and the proposed plan for 2019 is also not to distribute cash dividends[116] - The total number of shares for the profit distribution plan is 804,040,313, with no cash dividends proposed[113] Research and Development - In 2019, the company's R&D expenditure was CNY 35,237,406.91, a decrease of 44.69% compared to CNY 63,711,806.90 in 2018, accounting for 4.83% of operating revenue[73] - The number of R&D personnel decreased to 104 in 2019 from 191 in 2018, representing a decline in the proportion of R&D staff from 10.61% to 6.66%[73] Corporate Governance and Compliance - The company has committed to maintaining independent financial management and governance structures, ensuring no overlap with controlling shareholders' other enterprises[120] - The company is committed to ensuring independent operations and minimizing related party transactions[122] - The company guarantees that it will not misuse funds or profits from related party transactions to the detriment of other shareholders[131] Future Outlook - The health industry in China is projected to exceed 8 trillion yuan by 2020 and 16 trillion yuan by 2030, indicating significant growth potential for the company[1] - The company anticipates a stable performance in the upcoming fiscal year, guided by its strategic initiatives and market expansion plans[199] - The company is focused on expanding its market presence and enhancing its product offerings in the health technology sector[199]

Financial Performance - Operating revenue for the reporting period was CNY 178,851,390.51, a decline of 16.87% year-on-year[7] - Net profit attributable to shareholders decreased by 30.37% to CNY 10,047,872.86 compared to the same period last year[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 9,789,668.17, down 23.51% year-on-year[7] - Basic earnings per share were CNY 0.0125, a decrease of 30.17% compared to the same period last year[7] - The weighted average return on net assets was 0.63%, down from 0.04% in the previous year[7] - Total operating revenue for Q3 2019 was ¥178,851,390.51, a decrease of 17.0% compared to ¥215,155,627.19 in the same period last year[42] - Net profit for Q3 2019 was ¥8,876,137.98, compared to ¥14,285,471.47 in Q3 2018, indicating a decline of 37.0%[43] - The total comprehensive income for Q3 2019 was ¥11,070,770.83, down from ¥18,881,796.44 in Q3 2018, reflecting a decline of 41.5%[44] - The total comprehensive income for the current period is a loss of $1.84 million, compared to a gain of $5.14 million in the previous period[56] Asset and Liability Management - Total assets decreased by 8.79% to CNY 1,841,257,446.09 compared to the end of the previous year[7] - Cash and cash equivalents decreased by 60.84% compared to the beginning of the year, primarily due to the purchase of financial products and operational expenditures[18] - Accounts receivable decreased by 37.27% compared to the beginning of the year, attributed to enhanced collection efforts[18] - Total current assets decreased to CNY 749,551,152.50 from CNY 925,782,740.32, reflecting a decline of approximately 19%[33] - Total liabilities decreased to CNY 254,989,139.17 from CNY 417,448,877.28, a reduction of about 39%[34] - The company reported a net loss of CNY 610,443,795.32 as of September 30, 2019, compared to a loss of CNY 595,388,797.13 at the end of 2018[35] - The total equity attributable to shareholders decreased to CNY 1,573,409,412.74 from CNY 1,586,313,290.03, a decline of approximately 1%[35] - The company's total liabilities decreased to ¥196,443,556.81 from ¥245,897,080.21, a reduction of 20.0%[40] - The total cash and cash equivalents at the end of the period were ¥35,462,216.31, down from ¥47,992,339.27 at the end of the same quarter last year[64] Cash Flow Analysis - The company reported a net cash flow from operating activities of CNY 109,807,477.44 for the year-to-date[7] - Cash flow from operating activities generated a net amount of $109.81 million, a recovery from a negative cash flow of $56.71 million in the previous period[59] - The net cash flow from operating activities was ¥40,536,513.18, a significant improvement compared to a net outflow of ¥12,603,212.99 in the same period last year[63] - The net cash flow from financing activities was -¥47,553,512.79, an improvement from -¥65,163,179.51 year-over-year[64] Investment and R&D - Investment income increased by 42.16% year-on-year, driven by the disposal of equity in Anhui Lexin Health Management Co., Ltd. and bank financial product returns[20] - Research and development expenses for Q3 2019 were ¥8,287,673.71, a decrease of 44.0% from ¥14,774,467.47 in Q3 2018[42] - Research and development expenses for the year-to-date period were ¥29,638,334.09, a decrease from ¥35,914,963.64 in the previous year[49] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 45,070[11] - The largest shareholder, Rongjie Investment Holding Group Co., Ltd., held 12.73% of the shares[11] - The company did not conduct any repurchase transactions among the top 10 shareholders during the reporting period[12] Other Financial Metrics - The company experienced an asset impairment loss of ¥9,512,610.54 for the year-to-date period, compared to ¥3,007,786.68 in the previous year[51] - The company reported a financial expense of -¥3,142,786.05 for the year-to-date period, a significant decrease from -¥38,567.44 in the previous year[49] - The company reported an accumulated deficit of CNY -821,453,520.71 in undistributed profits[73]

Financial Performance - Total revenue for the first half of 2019 was CNY 351,776,093.41, a decrease of 30.78% compared to CNY 508,196,113.51 in the same period last year[18]. - Net profit attributable to shareholders was a loss of CNY 25,102,871.04, representing a decline of 180.82% from a profit of CNY 31,061,388.02 in the previous year[18]. - Basic and diluted earnings per share were both CNY -0.0312, a decline of 180.83% from CNY 0.0386 in the same period last year[18]. - The total profit was -¥27,222,585.53, representing a year-on-year decline of 180.42%[27]. - The company reported a net loss of CNY 620,491,668.17, compared to a loss of CNY 595,388,797.13 in the previous period[127]. - The company reported a total comprehensive loss of CNY 27,291,959.14 for the first half of 2019, compared to a comprehensive income of CNY 31,154,627.65 in the same period of 2018[136]. - The company reported a total comprehensive income of 5,927,941.44 million RMB for the current period[159]. Cash Flow and Liquidity - The net cash flow from operating activities improved to CNY 92,965,152.58, a significant increase of 216.96% compared to a negative cash flow of CNY -79,485,068.61 in the same period last year[18]. - Cash inflow from operating activities was 563,343,976.68 CNY, down 10% from 626,155,915.31 CNY year-on-year[141]. - The ending balance of cash and cash equivalents was 147,854,094.10 CNY, down from 246,089,554.62 CNY at the end of the previous year[144]. - The company reported a decrease in tax payments, totaling 15,822,135.77 CNY, compared to 31,781,215.52 CNY in the first half of 2018[143]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,834,078,604.50, down 9.14% from CNY 2,018,655,562.47 at the end of the previous year[18]. - Current liabilities decreased from CNY 394,901,241.27 to CNY 243,748,362.66, a reduction of about 38.3%[126]. - Total liabilities decreased from CNY 10,884.00 million yuan to 10,840.00 million yuan[151]. - The company’s total liabilities were approximately 1,195.30 million yuan, reflecting a stable financial position[154]. Market and Industry Position - The company operates in the health industry, focusing on health products, services, and life sciences, with a comprehensive product line including far-infrared therapy products and fitness equipment[25]. - The health industry in China is projected to grow significantly, with a market size reaching ¥80 trillion by 2020, indicating substantial growth potential[28]. - The company has expanded its market presence to approximately 50 countries, including the USA, Germany, and Japan, through ODM and international brand agency models[26]. - The company is actively adjusting market strategies and increasing investment in new product development to enhance competitiveness amid market risks[72]. Operational Efficiency and Strategy - The management team has implemented a new performance evaluation system to enhance operational efficiency and align employee goals with organizational strategy[35]. - The company is focusing on developing new products in response to market demands, particularly in the aging population and sub-health segments[29]. - The company aims to improve its financial performance in the second half of 2019 by optimizing operational efficiency and exploring potential mergers and acquisitions[156]. Research and Development - Research and development expenses were 21,350,660.38 RMB, down 22.90% from 27,690,545.03 RMB in the previous year[40]. - The company has strengthened its core competitiveness by integrating resources and enhancing its product and marketing chains[25]. Shareholder Information - Major shareholder Jin Daoming holds 10.84% of the shares, totaling 87,138,800, with 21,784,700 shares released from restrictions[108]. - The total number of shares decreased by 502,000, resulting in a total of 804,040,300 shares[102]. - The company has a total of 45,033 common shareholders at the end of the reporting period[107]. Compliance and Governance - The semi-annual financial report was not audited[79]. - There were no major litigation or arbitration matters during the reporting period[82]. - The company did not experience any penalties or rectification situations during the reporting period[83]. Financial Reporting and Accounting Policies - The financial statements are prepared in accordance with the Chinese accounting standards, ensuring a true and complete reflection of the company's financial status[168]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired[174]. - The company measures financial instruments based on their purpose, categorizing them into various types, including those measured at fair value and those held to maturity[183].

Financial Performance - Total revenue for Q1 2019 was ¥183,438,190.21, a decrease of 29.91% compared to ¥261,725,593.27 in the same period last year[7] - Net profit attributable to shareholders was -¥20,362,903.27, representing a decline of 181.09% from ¥25,111,969.86 year-on-year[7] - Basic and diluted earnings per share were both -¥0.0253, down 181.09% from ¥0.0312 in the same period last year[7] - The company reported a net loss of CNY 827,377,017.61, compared to a loss of CNY 821,453,520.71 in the previous period[59] - Net profit for the period was a loss of ¥21,864,997.64 compared to a profit of ¥24,908,532.39 in the previous period, indicating a significant downturn[62] - Operating profit turned negative at ¥-22,668,128.94, down from ¥26,105,025.34 in the prior year[62] Cash Flow - The net cash flow from operating activities was ¥19,060,850.33, a significant improvement from -¥60,452,396.95 in the previous year[7] - Operating cash inflow for the current period was CNY 271,621,097.27, down 16.4% from CNY 325,075,757.25 in the previous period[70] - Cash flow from financing activities resulted in a net outflow of CNY -76,842,158.98, compared to a net inflow of CNY 37,690,655.32 in the previous period[71] - Total cash outflow from operating activities was CNY 252,560,246.94, a decrease of 34.4% from CNY 385,528,154.20 in the previous period[70] - Cash received from tax refunds was CNY 8,231,109.63, an increase of 4.8% from CNY 7,857,733.70 in the previous period[70] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,872,602,432.93, a decrease of 7.24% from ¥2,018,655,562.47 at the end of the previous year[7] - Current liabilities decreased from CNY 394,901,241.27 to CNY 273,057,384.56, a reduction of about 30.8%[53] - Total liabilities decreased from CNY 417,448,877.28 to CNY 291,820,473.04, a decline of around 30.0%[53] - Cash and cash equivalents decreased from CNY 179.63 million at the end of 2018 to CNY 125.45 million by March 31, 2019[50] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 47,406[10] - The top shareholder, Jin Daoming, held 10.84% of shares, amounting to 87,138,800 shares, with 69,352,000 shares pledged[10] - The company did not engage in any repurchase transactions among the top shareholders during the reporting period[11] Government Support and Investment - The company received government subsidies amounting to ¥1,058,078.34 during the reporting period[8] - The total amount of raised funds is CNY 44,800 million, with CNY 258.45 million invested in the current quarter[42] - Cumulative investment of raised funds amounts to CNY 41,664.74 million, representing 93% of the total raised funds[43] Strategic Initiatives - The company plans to intensify product promotion efforts and strictly control expenses to mitigate revenue decline in Q2 2019[34] - The company aims to enhance product and technology innovation and strengthen brand promotion to improve market competitiveness[36] - The company is exploring new strategies for market expansion and product development to recover from the current financial downturn[62] Risk Management - The company faces risks related to goodwill impairment from acquisitions, particularly concerning the performance of acquired entities[37] - The company plans to strengthen management of subsidiaries and enhance internal control, particularly in risk management, due to the increased management risks from business expansion[39] - The company will adopt a prudent investment strategy, focusing on high-quality investment targets that complement its business to enhance profitability and market scale[38] Other Financial Metrics - Cash and cash equivalents decreased by 30.16% compared to the beginning of the year, primarily due to repayment of bank loans[17] - Financial expenses decreased by 40.15% year-on-year, attributed to reduced borrowings and corresponding interest expenses[23] - Research and development expenses decreased slightly to ¥6,468,879.43 from ¥7,810,496.93, reflecting a focus on cost management[60]

Financial Performance - The company's operating revenue for 2018 was CNY 1,063,357,911, representing a decrease of 12.70% compared to CNY 1,217,589,896 in 2017[17]. - The net profit attributable to shareholders was a loss of CNY 782,170,138.5, a significant decline of 1,255.21% from a profit of CNY 67,995,067.28 in the previous year[17]. - The basic earnings per share for 2018 was -CNY 0.99, a decrease of 1,200.00% compared to CNY 0.08 in 2017[17]. - The total profit for the year was CNY -772,294,877.87, a year-on-year decrease of 1,046.83%[38]. - The total operating revenue for the year was CNY 1,063,357,911.35, a year-on-year decrease of 12.70%[38]. - The net profit attributable to shareholders of the listed company was CNY -782,170,138.54, a year-on-year decrease of 1,255.21%[38]. - The total profit was CNY -772,294,877.87, representing a year-on-year decline of 1,046.83%[47]. - The company reported a significant decrease in investment amount, with a current period investment of ¥7,000,000.00, down 97.31% from the previous year's ¥260,422,692.00[75]. - The company experienced a net loss of CNY 12,413,473.39 in 2018, indicating ongoing financial challenges[96]. Assets and Liabilities - The total assets at the end of 2018 were CNY 2,018,655,562, down 32.48% from CNY 3,069,523,158 at the end of 2017[17]. - The net assets attributable to shareholders decreased by 32.60% to CNY 1,586,313,290 from CNY 2,436,168,897 in 2017[17]. - The company reported total assets of CNY 16,200,366.98 and a net asset of -CNY 3,770,592.27 as of December 31, 2018[96]. - The company’s cash and cash equivalents decreased by ¥145,395,119.59, a 277.81% increase in net decrease compared to the previous year[67]. - The proportion of inventory in total assets increased by 2.97% to 12.57%[71]. Cash Flow - The net cash flow from operating activities was CNY -86,377,856.21, a decline of 109.55% compared to CNY 5,556,981.71 in 2017[17]. - The net cash flow from operating activities was CNY 62,267,933.30 in Q4, showing a recovery from previous quarters[1]. - Operating cash inflow for 2018 was ¥1,200,985,450.66, reflecting a year-on-year increase of 3.21%[67]. - The net cash flow from operating activities was ¥5,556,981.71, a significant improvement from a net outflow of ¥72,810,344.44 in the previous year[67]. Dividends and Shareholder Returns - The company plans not to distribute cash dividends or issue bonus shares for the year[6]. - The company proposed no cash dividends for the 2018 fiscal year, marking a change from previous years where cash dividends were distributed[114]. - The total cash dividends for 2018 were reported as RMB 0.00, indicating no distribution[115]. Subsidiary Performance - The subsidiary Ruiyu Fitness achieved operating revenue of CNY 209,641,123.77 and net profit of CNY 23,229,734.48 during the reporting period[48]. - The subsidiary Jiugong Jianye reported steady growth with operating revenue of CNY 363,596,414.90 and net profit of CNY 39,626,426.74[49]. - Anhui Jiugong Health achieved a total revenue of CNY 215,235,789, but reported a net loss of CNY -66,687,731[90]. - Shanghai Ruiyu Fitness generated revenue of CNY 209,641,123 with a net profit of CNY 23,229,734, reflecting a strong performance in the fitness and leisure sector[90]. - Shenzhen Furuisi Health reported total assets of CNY 257,221,825 and a net profit of CNY 39,626,426, indicating robust growth in the massage equipment market[95]. Strategic Initiatives - The company plans to enhance its product line and marketing chain through mergers and acquisitions, focusing on high-tech talent and sustainable industries[26]. - The company has developed a comprehensive health service platform covering various health management services, enhancing its competitive edge[43]. - The company is focusing on improving operational efficiency and reducing costs through industry integration and management optimization[43]. - The company plans to enhance internal management and optimize its product and industry structure through technological innovation and management reform in 2019[100]. - The company aims to strengthen brand building and optimize existing sales channels to improve operational efficiency and reduce costs[98]. Risks and Compliance - The company has outlined potential risks and corresponding countermeasures in its future development outlook section[5]. - The company has identified market risks due to economic fluctuations and increasing competition, prompting adjustments in marketing strategies[103]. - The company has recognized goodwill impairment risks associated with acquisitions, particularly for the acquisitions of Jiugong Jianye and Ruiyu Fitness[104]. - The company is at risk of penalties due to potential non-compliance with employee social security and housing fund contributions[148]. Governance and Management - The company has committed to maintaining independent financial management and governance structures[116]. - The actual controller and related parties have fulfilled their commitments regarding the independence of the company's operations[116]. - The company has established a complete and independent labor and compensation management system[118]. - The company guarantees that all assets are under its control and will not be misappropriated by related parties[118]. Research and Development - Research and development expenses for 2018 were ¥63,711,806.90, an increase of 20.93% compared to the previous year, and represented 5.99% of total revenue[64]. - The company will increase investment in research and development to enhance product quality and technical competitiveness[102]. - The company has established a stable R&D team to support ongoing and future projects[144]. Share Structure and Transactions - The total number of shares before the change was 804,542,300, with 30.01% being restricted shares and 69.99% being unrestricted shares[186]. - The number of restricted shares decreased by 48,796,400, resulting in a new total of 192,671,500 restricted shares, which is 23.95% of the total[186]. - The company released a total of 10,749,854 shares from restrictions during the reporting period, including 8,559,697 shares from Gong Xiangmin and 2,190,157 shares from Chen Mengyang[187]. - The company’s stock incentive plan allows for 25% of the total shares held by directors and senior management to be released from restrictions annually[187]. Legal and Regulatory Matters - There were no major lawsuits or arbitration matters reported during the year[160]. - The company has not faced any penalties or rectification issues during the reporting period[161]. - The board has approved corrections to accounting errors to enhance the accuracy of financial reporting[155].

Financial Performance - The company's operating revenue for 2018 was ¥1,063,357,911, a decrease of 12.70% compared to ¥1,217,589,896 in 2017[16] - The net profit attributable to shareholders was -¥782,170,138.5, representing a decline of 1,255.21% from a profit of ¥67,995,067.28 in the previous year[16] - The basic earnings per share for 2018 was -¥0.99, a decrease of 1,200.00% compared to ¥0.08 in 2017[16] - The total profit for the year was CNY -772,294,877.87, a decrease of 1,046.83% year-on-year[36] - The total operating revenue for the year was CNY 1,063,357,911.35, a decrease of 12.70% year-on-year[36] - The net profit attributable to shareholders of the listed company was CNY -782,170,138.54, a decline of 1,255.21% year-on-year[36] - The gross profit margin for the massage product series was 22.35%, down from the previous year, reflecting a decrease of 5.84%[55] Assets and Liabilities - The total assets at the end of 2018 were ¥2,018,655,562, down 32.48% from ¥3,069,523,158 at the end of 2017[16] - The net assets attributable to shareholders decreased by 32.60% to ¥1,586,313,290 from ¥2,436,168,897 in 2017[16] - The company's total assets included cash and cash equivalents of ¥179,627,750.60, which represented 8.90% of total assets[69] - The long-term equity investments increased to ¥228,630,160.00, accounting for 11.33% of total assets, up from 7.10% the previous year[69] Cash Flow - The net cash flow from operating activities was -¥86,377,856.21, a decline of 109.55% compared to ¥5,556,981.71 in 2017[16] - The net cash flow from operating activities was CNY 62,267,933.30 in Q4, following a negative cash flow in the previous three quarters[1] - Operating cash inflow totaled ¥1,200,985,450.66, reflecting a year-on-year increase of 3.21%[64] - The net cash flow from operating activities was ¥5,556,981.71, a significant improvement from a net outflow of ¥72,810,344.44 in the previous year[65] Investment and Development - The company is focusing on expanding its product line and enhancing its technological capabilities through acquisitions and investments in high-tech talent[25] - The company has developed a comprehensive health service platform covering various health-related products and services, enhancing its market competitiveness[41] - The company has established a "super donor" iPSC cell resource bank, which can serve approximately 36 million people in China, addressing challenges in cell medical applications[48] - The company increased its construction projects by 100%, primarily due to the establishment of a new production and R&D center and the Wuhu production base[40] Market Strategy - The company operates under different business models for domestic and international markets, including direct sales and ODM for overseas clients[35] - The company has established a multi-channel marketing strategy combining distribution, direct sales, e-commerce, and experience stores in the domestic market[35] - The company aims to strengthen its core competitiveness and ensure sustainable development in the health industry[25] - The company faces market risks due to complex economic conditions and increasing competition, prompting adjustments in market strategies and marketing models[102] Shareholder and Dividend Policy - The company plans not to distribute cash dividends or issue bonus shares[5] - The company proposed a profit distribution plan for 2018 that includes no cash dividends, no stock bonuses, and no capital reserve transfers[113] - The total cash dividend amount for 2018 was RMB 0.00, with a total distributable profit also at RMB 0.00[114] - The company has maintained a consistent cash dividend policy over the past three years, with no changes or adjustments made in 2018[113] Risk Management - The company has identified potential risks in its future development and outlined corresponding countermeasures[4] - The company has recognized significant goodwill from acquisitions, with risks of impairment due to potential underperformance of acquired entities[103] - The company plans to implement a robust management strategy to address risks associated with its expanding scale and ensure effective internal controls[105] Compliance and Governance - The company has not reported any significant discrepancies between financial data disclosed under different accounting standards[19] - The company has undergone adjustments in accounting policies and corrections of accounting errors during the reporting period[17] - The company has not encountered any major changes in the feasibility of the projects funded by raised capital[84] - The company has made commitments to avoid conflicts of interest in related party transactions, ensuring fair and reasonable dealings[152] Subsidiaries and Performance - The company’s subsidiary, Ruiyu Fitness, reported operating revenue of CNY 209,641,123.77 and net profit of CNY 23,229,734.48 during the reporting period[46] - The subsidiary, Jiugong Jianye, achieved operating revenue of CNY 363,596,414.90 and net profit of CNY 39,626,426.74, despite facing challenges in shared massage chair sales[47] - Anhui Jiugong Health Industry Co., Ltd. reported a total revenue of CNY 215,235,789 with a net loss of CNY -66,687,731 for the reporting period[88] Share Structure and Ownership - The total number of shares outstanding is 241,467,987, with 49,188,207 shares held under lock-up agreements[191] - The largest shareholder, Jin Daoming, holds 10.83% of the shares, totaling 87,138,800 shares, with a decrease of 2,904,000 shares during the reporting period[193] - The company has a total of 50,046 shareholders at the end of the reporting period, an increase from 47,406 at the end of the previous month[193] - The controlling shareholder changed to Rongjie Investment Holding Group Co., Ltd. on August 29, 2018[198]

Financial Performance - Total revenue for Q1 2019 was ¥183,438,190.21, a decrease of 29.91% compared to ¥261,725,593.27 in the same period last year[7] - Net profit attributable to shareholders was -¥20,362,903.27, representing a decline of 181.09% from ¥25,111,969.86 year-over-year[7] - Basic and diluted earnings per share were both -¥0.0253, down 181.09% from ¥0.0312 in the same period last year[7] - The company reported a net loss of CNY 827,377,017.61, compared to a loss of CNY 821,453,520.71 in the previous period[59] - Operating profit turned negative at -¥22,668,128.94, down from ¥26,105,025.34 in the prior year[62] - The total comprehensive income for the period was -¥20,481,225.29, a significant decline from ¥21,426,835.02 in the previous year[63] Cash Flow and Liquidity - The net cash flow from operating activities was ¥19,060,850.33, a significant improvement from -¥60,452,396.95 in the previous year[7] - Cash and cash equivalents at the end of the period decreased by 30.16% compared to the beginning of the year, primarily due to repayment of bank loans[17] - Cash flow from financing activities resulted in a net outflow of ¥76,842,158.98, compared to a net inflow of ¥37,690,655.32 in the previous period[71] - The ending balance of cash and cash equivalents was ¥121,261,056.80, down 62.9% from ¥326,300,551.89 in the previous period[71] - Total cash outflow from operating activities was ¥252,560,246.94, a decrease of 34.4% from ¥385,528,154.20 in the previous period[70] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,831,566,761.61, a decrease of 7.28% from ¥1,975,326,108.82 at the end of the previous year[7] - Current liabilities decreased from CNY 394,901,241.27 to CNY 273,057,384.56, a reduction of about 30.8%[53] - Non-current liabilities decreased from CNY 22,547,636.01 to CNY 18,763,088.48, a decrease of approximately 16.5%[53] - Total equity decreased from CNY 1,601,206,685.19 to CNY 1,580,781,959.89, a decline of about 1.3%[54] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 47,406[10] - The top shareholder, Jin Daoming, held 10.84% of shares, amounting to 87,138,800 shares, which are currently pledged[10] - The company did not engage in any repurchase transactions among the top 10 shareholders during the reporting period[11] Government Support and Subsidies - The company received government subsidies amounting to ¥1,058,078.34 during the reporting period[8] Investment and Capital Management - The total amount of raised funds is CNY 44,800 million, with CNY 258.45 million invested in the current quarter[42] - Cumulative investment of raised funds amounts to CNY 41,664.74 million, representing 93% of the total raised funds[43] - The company plans to adopt a prudent investment strategy, focusing on high-quality investment targets that complement its business[38] Operational Strategies - The company plans to intensify product promotion efforts and strictly control expenses to mitigate revenue decline in Q2 2019[34] - The company aims to enhance product and technology innovation and strengthen brand promotion to improve market competitiveness[36] - The company plans to strengthen management of subsidiaries and enhance internal control systems to mitigate management risks associated with expansion[38] Research and Development - The company reported a decrease in research and development expenses to ¥6,468,879.43 from ¥7,810,496.93, a reduction of approximately 17.1%[60]

Financial Performance - Operating revenue for the reporting period was CNY 215,155,627.19, down 30.34% year-on-year, with a year-to-date total of CNY 723,351,740.70, a decrease of 4.43%[7] - Net profit attributable to shareholders was CNY 14,429,464.39, a decline of 8.27% compared to the same period last year, with a year-to-date total of CNY 45,490,852.41, down 9.36%[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 8,891,351.67, a decrease of 37.11% year-on-year[7] - The basic earnings per share for the reporting period was CNY 0.0179, down 8.21% compared to the same period last year[7] - The weighted average return on equity was 0.59%, a decrease of 0.08% compared to the previous year[7] - Total operating revenue for the third quarter was CNY 215,155,627.19, a decrease from CNY 308,876,812.69 in the previous period[40] - Total operating costs amounted to CNY 209,089,339.10, down from CNY 291,708,757.61 year-over-year[40] - Net profit for the period was CNY 14,285,471.47, slightly down from CNY 14,673,470.33 in the same period last year[42] - The company reported a total comprehensive income of CNY 18,881,796.44, compared to CNY 21,304,396.29 in the previous year[43] Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,946,079,402.13, a decrease of 4.02% compared to the end of the previous year[7] - Total assets decreased from CNY 3,069,523,158.22 at the beginning of the period to CNY 2,946,079,402.13 by the end of the period, a decline of approximately 4.01%[32] - Current assets decreased from CNY 1,305,778,038.37 to CNY 1,159,521,260.29, representing a reduction of about 11.21%[33] - Total liabilities decreased from CNY 612,238,862.53 to CNY 462,131,802.52, a reduction of about 24.5%[35] - Current liabilities decreased from CNY 569,331,454.27 to CNY 435,170,569.61, a decline of approximately 23.5%[35] - Non-current liabilities decreased from CNY 42,907,408.26 to CNY 26,961,232.91, a reduction of about 37.2%[35] - Total equity increased from CNY 2,457,284,295.69 to CNY 2,483,947,599.61, an increase of approximately 1.09%[35] Cash Flow - The net cash flow from operating activities was CNY -56,710,951.59, representing a significant decline of 4,188.47% year-on-year[7] - The company did not receive any investment cash during the reporting period, resulting in a 100% decrease in cash flow from financing activities[20] - Cash and cash equivalents decreased by 63.27% compared to the beginning of the year, mainly due to the purchase of financial products and operational payments[18] - The net cash flow from investment activities was -¥92,682,564.06, compared to -¥35,620,927.54 in the previous period, indicating a significant increase in cash outflow[57] - The net cash flow from financing activities was -¥59,689,319.51, slightly worse than -¥58,464,852.89 from the previous period[57] - The total cash and cash equivalents at the end of the period decreased to ¥119,321,927.39 from ¥284,737,618.14 in the previous period[58] - Operating cash inflow totaled ¥108,043,311.51, down from ¥183,207,155.03 in the previous period, reflecting a decline in operational performance[59] - The net cash flow from operating activities was -¥12,603,212.99, a significant drop from a positive cash flow of ¥6,825,292.58 in the previous period[59] - Cash received from sales of goods and services was ¥65,180,015.58, down from ¥115,760,411.22 in the previous period, indicating reduced sales performance[59] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 51,860[11] - The largest shareholder, Jin Daoming, held 10.83% of the shares, amounting to 87,138,800 shares, with a portion pledged[11] - The company transferred a total of 40.8 million shares (5.07% of total shares) to Rongjie Group at a price of RMB 7.0 per share, totaling RMB 285.6 million[23] - The actual controller of the company changed to Rongjie Group after the share transfer[23] Investment and R&D - The company reported a government subsidy of CNY 10,405,308.32 during the year[8] - Research and development expenses increased to CNY 14,774,467.47, up from CNY 9,223,286.70 year-over-year, indicating a focus on innovation[40] - Investment income increased by 45.02% compared to the same period last year, mainly due to increased investment income from joint ventures and associates[19] - The company achieved an investment income of CNY 3,872,463.67, compared to CNY 1,289,178.93 in the previous period, reflecting improved performance in joint ventures[42] - The company reported a significant increase in investment income from joint ventures, rising to ¥11,943,735.71 from ¥2,110,349.74, an increase of approximately 466.5%[54]

Financial Performance - Total revenue for the first half of 2018 was CNY 508,196,113.51, representing a 13.43% increase compared to CNY 448,034,697.92 in the same period last year[16]. - Net profit attributable to shareholders decreased by 9.86% to CNY 31,061,388.02 from CNY 34,460,706.70 year-on-year[16]. - Net profit after deducting non-recurring gains and losses fell by 19.64% to CNY 26,892,919.56 compared to CNY 33,466,406.10 in the previous year[16]. - The total profit amounted to CNY 33,848,942.72, a decrease of 17.88% compared to the previous year[23]. - The company achieved operating revenue of CNY 508,196,113.51, representing a year-on-year growth of 13.43%[23]. - Basic and diluted earnings per share decreased by 10.02% to CNY 0.0386 from CNY 0.0429 year-on-year[16]. - The company reported a net profit of 29,534,541.61 CNY, a decrease of 13.38% from 34,099,173.23 CNY in the previous year[136]. - The company reported a total comprehensive income of 5,927,941 CNY during the period[156]. Cash Flow and Assets - The net cash flow from operating activities was negative at CNY -79,485,068.61, a decline of 204.80% from CNY 75,848,000.54 in the same period last year[16]. - As of the end of the reporting period, cash and cash equivalents amounted to ¥247.67 million, representing 8.33% of total assets, a decrease of 7.44% compared to the previous year[46]. - The company's total assets at the end of the reporting period were ¥2,564,902,280.51, down from ¥2,598,482,217.37 at the beginning of the year[133]. - The company's current assets totaled CNY 1,197,213,445.56, down from CNY 1,305,778,038.37, indicating a decrease of about 8.3%[127]. - The total liabilities decreased from CNY 612,238,862.53 to CNY 507,791,047.40, a reduction of about 17.0%[128]. - The total equity remained stable at CNY 2,464,811,465.66, with no change in the share capital of CNY 804,542,313.00[128]. Investments and R&D - The company increased R&D investment by 38.75% to ¥27,690,545.03, driven by subsidiaries' efforts[39]. - The company aims to leverage favorable policies in the health industry to boost product sales and enhance market competitiveness[29]. - The company is committed to continuous innovation and has formed a strong brand presence in the health sector, ensuring a competitive edge in the market[30]. - The company established a universal super donor iPSC cell resource bank, which can serve approximately 36 million people in China[36]. - The company is actively promoting clinical research for stem cells to treat immune diseases and osteoarthritis[36]. Market Position and Strategy - The company is positioned as a leader in the health industry, focusing on a comprehensive health service system that integrates health products, health testing, and health management[26]. - The market for health services in China is projected to exceed CNY 8 trillion by 2020 and reach CNY 16 trillion by 2030, driven by an aging population and increasing health awareness[24]. - The company has developed a diverse range of products, including far-infrared therapy products, massage chairs, and small massage devices, enhancing its market presence[28]. - The company has established a robust marketing channel combining distribution, retail, and e-commerce, creating a comprehensive family health service system[23]. Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company’s total share capital is 804,542,313 shares, with 69.99% being unrestricted shares[106]. - The largest shareholder, Jin Daoming, holds 14.44% of the shares, totaling 116,178,800 shares[111]. - The total number of ordinary shareholders at the end of the reporting period was 55,013[111]. - Rongjie Investment Holding Group increased its stake in the company by acquiring 45,512,302 shares, representing 5.66% of total shares, bringing its total ownership to 10.73%[101]. Risks and Challenges - The company is facing market risks due to a complex domestic economic environment and is actively adjusting its market strategies and increasing new product R&D[75]. - The company is experiencing negative impacts on its performance due to significant depreciation pressure on the RMB against the USD and EUR, and is taking measures to mitigate exchange rate risks[77]. - The company is addressing management risks associated with its expanding scale by innovating management mechanisms and establishing a management system that aligns with its growth[76]. Corporate Governance - The company experienced changes in its board members, with two directors resigning on May 15, 2018, due to personal reasons[119]. - The company has implemented a stock incentive plan to enhance the motivation of management and core employees, aligning their interests with those of shareholders[88]. - The report indicates that there were no changes in the controlling shareholder or actual controller during the reporting period[113]. Financial Reporting and Compliance - The financial report for the first half of 2018 was not audited, indicating a potential area of concern for investors[124]. - The company adheres to the accounting standards and principles, ensuring the financial statements accurately reflect its financial position and operating results[174]. - The company prepares consolidated financial statements based on its own and subsidiaries' financial reports, reflecting the overall financial position, operating results, and cash flows of the entire corporate group[181].

Financial Performance - Total revenue for Q1 2018 was CNY 261,725,593.27, an increase of 17.15% compared to CNY 223,411,294.83 in the same period last year[7] - Net profit attributable to shareholders was CNY 25,111,969.86, representing a growth of 52.90% from CNY 16,424,318.46 year-on-year[7] - Net profit excluding non-recurring gains and losses reached CNY 22,689,736.19, up 57.21% from CNY 14,432,479.84 in the previous year[7] - Basic earnings per share increased by 48.57% to CNY 0.0312 from CNY 0.0210 in the same period last year[7] - The company's total revenue for Q1 2018 was ¥261,725,593.27, representing a year-on-year growth of 17.15%[23] - Net profit attributable to ordinary shareholders for the same period was ¥25,111,969.86, showing a year-on-year increase of 52.90%[23] - The company reported a significant increase in investment income, reaching CNY 3,648,224.54 in Q1 2018, compared to CNY 85,280.29 in Q1 2017[48] - The total comprehensive income for Q1 2018 was CNY 21,630,272.49, compared to CNY 16,490,218.48 in the same period last year[48] Cash Flow and Financial Position - The company reported a net cash flow from operating activities of -CNY 60,452,396.95, worsening from -CNY 21,663,694.35 in the previous year[7] - Cash and cash equivalents at the end of Q1 2018 were CNY 257,479,142.27, up from CNY 243,090,877.48[40] - The company's cash and cash equivalents at the end of the reporting period amounted to CNY 327,636,709.24, slightly up from CNY 326,322,604.49 at the beginning of the period[36] - The net cash flow from operating activities for the current period is CNY 3,990,209.53, a decrease of 40.5% compared to CNY 6,713,265.52 in the previous period[56] - Total cash inflow from operating activities is CNY 51,321,472.28, while cash outflow is CNY 47,331,262.75, resulting in a net cash flow of CNY 3,990,209.53[56] - Cash inflow from financing activities increased to CNY 60,000,000.00, up from CNY 30,000,000.00 in the previous period, marking a 100% increase[57] - The total cash and cash equivalents at the end of the period is CNY 256,636,442.87, a decrease from CNY 285,745,264.72 in the previous period[57] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 59,357[13] - The company reported a total of 241,467,987 shares with 14,078,404 shares released from restrictions during the period[16] - The number of shares held by the top 10 unrestricted shareholders includes 29,044,700 shares held by Jin Daoming, representing 3.12% of total shares[14] - The company has not conducted any repurchase agreements among the top 10 shareholders during the reporting period[14] - The company plans to release 80,000 shares from the equity incentive plan for Gong Xiangmin on August 27, 2018[16] Assets and Liabilities - Total assets at the end of the reporting period were CNY 3,054,414,800.31, a decrease of 0.49% from CNY 3,069,523,158.22 at the end of the previous year[7] - The total assets as of the end of Q1 2018 were CNY 2,631,425,460.65, compared to CNY 2,598,482,217.37 at the beginning of the period[42] - The total liabilities decreased to CNY 380,790,735.10 from CNY 353,949,712.40 in the previous period[42] - The company's equity attributable to shareholders increased to CNY 2,250,634,725.55 from CNY 2,244,532,504.97[42] Operational Efficiency - The company has focused on market development and promotion of existing products, leading to steady revenue growth[23] - The company has effectively controlled management expenses through streamlined processes[23] - Operating costs amounted to CNY 239,403,800.15, compared to CNY 208,404,243.70 in the prior period[44] - The gross profit margin improved to 38.1% in Q1 2018, compared to 34.5% in Q1 2017, indicating better cost management[48] Strategic Initiatives - The company plans to enhance product and technology innovation while expanding its marketing network to mitigate market risks[9] - The company is focusing on strategic investments and mergers to achieve resource sharing and enhance profitability[10]