Financial Performance - The company's operating revenue for the first half of 2021 was ¥268,416,764.27, representing a 13.32% increase compared to ¥236,869,822.93 in the same period last year[21]. - The net profit attributable to shareholders was ¥8,795,174.42, a significant turnaround from a loss of ¥11,084,714.60 in the previous year, marking a 179.35% improvement[21]. - The net profit after deducting non-recurring gains and losses was ¥7,923,976.28, compared to a loss of ¥13,415,558.64 last year, reflecting a 159.07% increase[21]. - The basic earnings per share increased to ¥0.0109 from a loss of ¥0.0138, showing a 178.99% improvement[21]. - The total assets at the end of the reporting period were ¥960,338,328.38, a slight increase of 0.39% from ¥956,578,278.65 at the end of the previous year[21]. - The net assets attributable to shareholders rose to ¥813,651,887.46, up 0.66% from ¥808,295,859.49 at the end of the last year[21]. - The weighted average return on net assets was 1.08%, compared to -0.02% in the previous year, indicating a positive shift[21]. - The company reported a total of ¥871,198.14 in non-recurring gains and losses during the reporting period[25]. Cash Flow and Investments - The net cash flow from operating activities was ¥9,355,646.04, down 85.19% from ¥63,182,512.21 in the same period last year[21]. - The cash flow from investment activities decreased by 596.73%, primarily due to increased purchases of bank wealth management products[40]. - Total investments during the reporting period reached 220,101,200.00, an increase of 23.93% compared to 177,601,786.00 in the same period last year[54]. - The company reported a total cash inflow from operating activities of ¥105,980,628.69, up from ¥47,317,579.86 in the previous year, indicating strong sales growth[157]. - The total cash outflow for investment activities was ¥118,442,107.14, which is a decrease from ¥188,876,003.68 in the previous year, reflecting a reduction in capital expenditures[159]. Research and Development - The company invested CNY 6.44 million in R&D, reflecting a 4.40% increase from the previous year[40]. - Research and development expenses for the first half of 2021 were CNY 6,440,676.66, compared to CNY 6,169,410.35 in the same period of 2020, reflecting an increase of 4.4%[145]. - Research and development expenses increased to CNY 4,284,665.62 in the first half of 2021, up from CNY 1,391,864.58 in the same period of 2020, reflecting a growth of approximately 208.5%[150]. - The company has over 380 patents and has established a strong R&D system in collaboration with several universities[35]. Market and Product Development - The sales revenue from infrared therapy rooms, air purifiers, and fitness equipment saw substantial growth, contributing to the overall revenue increase[34]. - The company has expanded its product line and sales channels, enhancing its competitiveness in the market[34]. - The company plans to adjust its product and market structure flexibly to expand domestic sales, effectively reducing the impact of macroeconomic fluctuations on its business[75]. - The company aims to accelerate new product development, optimize product structure, reduce production costs, and enhance brand value to increase market share and competitiveness[77]. Financial Position and Equity - The total equity attributable to shareholders was CNY 879,555,281.07 as of June 30, 2021, slightly up from CNY 877,724,028.27 at the end of 2020[144]. - The total assets of the company at the end of the reporting period were 1.34 billion yuan, up from 1.31 billion yuan at the end of the previous year, marking a growth of 2.3%[165]. - The total liabilities at the end of the reporting period were 651 million yuan, which is a slight increase from 640 million yuan in the previous period[165]. - The company has allocated 22.1 million yuan for general risk reserves, which is consistent with the previous period[167]. Compliance and Governance - The company has maintained compliance with environmental regulations and has not faced any administrative penalties related to environmental issues[91]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[95]. - The company did not distribute cash dividends or issue bonus shares during the reporting period[87]. - The company has not reported any significant litigation or arbitration matters during the reporting period[102]. Risks and Challenges - The company faces risks from rising raw material prices, which constitute a significant portion of its operating costs, and is implementing strategies to optimize its supply chain and manage procurement flexibly[79]. - The company is actively managing foreign exchange risks due to its substantial overseas business, employing flexible pricing strategies and maintaining communication with relevant institutions[81]. - The company is focusing on expanding new products and businesses despite challenges such as talent shortages and slow R&D progress, and is enhancing its R&D capabilities through collaboration with third-party firms[80]. Shareholder Information - The total number of shares outstanding is 804,040,313, with 99.87% being unrestricted shares[121]. - The largest shareholder, Rongjie Investment Holding Group Co., Ltd., holds 14.54% of the shares, totaling 116,912,302 shares[123]. - The company has no major related party transactions during the reporting period[103].

Financial Performance - The company's revenue for Q1 2021 was CNY 141,962,434.91, representing a 24.71% increase compared to CNY 113,831,468.13 in the same period last year[8]. - The net profit attributable to shareholders was CNY 8,192,592.25, a significant turnaround from a loss of CNY 15,407,677.21, marking a 153.17% improvement[8]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 7,629,271.47, compared to a loss of CNY 15,442,503.23, reflecting a 149.40% increase[8]. - The company's operating revenue increased by 28.13 million yuan, a growth of 24.71% year-on-year, and excluding the revenue from the sold subsidiary Shanghai Ruiyu, the revenue increased by 63.16 million yuan, a growth of 80.15%[25]. - The company's net profit attributable to ordinary shareholders increased by 8.19 million yuan, a rise of 153.17% year-on-year[33]. - The total comprehensive income attributable to the parent company was CNY 10,203,072.50, compared to a loss of CNY 15,832,919.16 in the same period last year[58]. - The basic and diluted earnings per share for the quarter were CNY 0.0102, recovering from a loss of CNY 0.0192 in the previous year[58]. Cash Flow and Assets - The net cash flow from operating activities was CNY 9,442,728.18, up 10.17% from CNY 8,570,859.68 in the previous year[8]. - Cash inflow from operating activities totaled ¥46,543,317.02, significantly increasing from ¥20,014,361.40 in the previous period[67]. - The cash flow from financing activities generated a net inflow of ¥21,188,932.83, with total cash outflow amounting to ¥8,811,067.17[69]. - The company's cash and cash equivalents decreased to CNY 30,079,500.33 from CNY 74,412,506.96, a decline of 59.6%[51]. - The total cash outflow from investing activities was ¥66,817,526.40, down from ¥128,906,430.32 in the previous period, resulting in a net cash flow from investing activities of -¥45,539,059.46[69]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 956,476,863.59, a slight decrease of 0.01% from CNY 956,578,278.65 at the end of the previous year[8]. - The company's current assets decreased to CNY 452,996,227.43 from CNY 482,597,303.79, reflecting a decline of approximately 6.1%[48]. - The total liabilities decreased to CNY 67,423,555.92 from CNY 79,189,997.84, reflecting a decline of about 15%[49]. - Total liabilities decreased to CNY 162,864,008.58 from CNY 166,927,541.65 at the end of 2020, a reduction of 2.0%[54]. Operational Efficiency - The gross profit margin improved from 23.22% to 25.36% during the reporting period[32]. - Total operating costs for Q1 2021 were CNY 130,707,253.35, up from CNY 121,479,126.10 in the same period last year, representing an increase of 7.9%[57]. - The company's accounts receivable decreased by 32.98%, down CNY 14,598,800, mainly due to the collection of previous receivables[20]. - Sales expenses decreased by 7.19 million yuan, a decline of 38.72%, mainly due to Shanghai Ruiyu not being included in the consolidated financial statements[26]. Investment and Development - Investment income increased by 7.34 million yuan, a growth of 105.54%, primarily due to the exclusion of investment income from sold subsidiaries[28]. - Research and development expenses for Q1 2021 were CNY 2,876,376.21, down from CNY 3,158,771.86 in Q1 2020, a decrease of 8.9%[57]. - Research and development expenses increased to CNY 1,907,048.63, up from CNY 607,057.48, indicating a focus on innovation[61]. Strategic Initiatives - The company plans to optimize its supply chain and strengthen supplier relationships to mitigate risks from raw material price fluctuations[35]. - The company aims to accelerate new product development and enhance brand value to improve market competitiveness[35]. Compliance and Governance - The company reported no violations regarding external guarantees during the reporting period[41]. - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[42]. - The company did not experience any significant changes in project feasibility or issues with the use of raised funds[40].

Financial Performance - In 2020, the company's operating revenue was ¥514,081,347.52, a decrease of 29.59% compared to ¥730,153,384.04 in 2019[17] - The net profit attributable to shareholders was a loss of ¥65,728,886.86, an improvement of 90.82% from a loss of ¥716,058,364.25 in 2019[17] - The net cash flow from operating activities was ¥80,965,344.72, down 19.09% from ¥100,063,464.55 in 2019[17] - The total assets at the end of 2020 were ¥956,578,278.65, a decrease of 15.68% from ¥1,134,527,481.31 at the end of 2019[17] - The company's net assets attributable to shareholders decreased by 7.75% to ¥808,295,859.49 from ¥876,231,983.53 in 2019[17] - The basic earnings per share improved to -¥0.08 from -¥0.89 in 2019, reflecting a 91.01% increase[17] - The company reported significant losses due to impairments related to investments in subsidiaries and joint ventures, particularly in the first quarter of 2020[6] - The company’s weighted average return on net assets was -7.79%, an improvement of 50.51% from -58.30% in 2019[17] Revenue and Sales Breakdown - In Q1 2020, the company reported revenue of approximately ¥113.83 million, which increased to ¥158.16 million in Q4 2020, marking a growth of 39% quarter-over-quarter[19] - Revenue from far-infrared therapy equipment increased by 46.92% to ¥267.42 million, accounting for 52.02% of total revenue[54] - Sales of massage products plummeted by 86.49% to ¥46.13 million, representing only 8.97% of total revenue[54] - Air purification series revenue rose by 66.47% to ¥45.48 million, contributing 8.85% to total revenue[54] - Export sales accounted for 75.06% of total revenue at ¥385.87 million, while domestic sales dropped by 60.91% to ¥128.21 million[56] Operational Improvements - The company divested from several loss-making assets, which significantly reduced operational losses and improved overall financial health[31] - The establishment of an industrial design center accelerated product R&D and innovation, expanding the product range across various price segments[31] - The company enhanced production and quality control, leading to improved product cost-effectiveness and increased customer satisfaction[31] - Marketing management was strengthened, resulting in a brand image upgrade and a more effective marketing system that improved product sales[31] Research and Development - The company applied for 63 new patents during the reporting period, bringing the total to over 380 patents[39] - The company's R&D expenditure for 2020 was ¥13,406,912.52, a decrease of 61.95% compared to ¥35,237,406.91 in 2019[64] - The R&D expenditure accounted for 2.61% of the operating revenue in 2020, down from 4.83% in 2019[66] Future Outlook and Strategy - The company plans to continue investing in product optimization and R&D to enhance market competitiveness[65] - The company plans to enhance its product development and technology innovation, with a focus on launching most of the planned product series in 2021[102] - The company aims to optimize its production processes and supply chain to reduce operational costs and improve gross margins in 2021[101] - The company will continue to seek investment opportunities in the health industry to expand its business growth points[104] Market Trends and Growth Potential - The health product market is projected to grow significantly, with the total demand expected to increase due to rising living standards and health awareness[34] - The total market size for the health service industry in China is expected to reach approximately ¥16 trillion by 2030, indicating substantial growth potential[34] - The health industry in China currently accounts for only 4%-5% of GDP, indicating significant growth potential compared to developed countries where it exceeds 15%[98] - The COVID-19 pandemic has accelerated the growth of the health industry, making it a new highlight for economic growth in China[99] Shareholder and Governance Structure - The company has committed to fulfilling all promises made by its actual controllers and shareholders during the reporting period[116] - The company guarantees the independence of its assets, ensuring that all assets are under the company's control and not used to secure debts of related parties[117] - The company has established a robust governance structure to ensure independent decision-making by its board and management[118] - The company has committed to independent tax compliance, ensuring it pays taxes independently from related parties[117] Compliance and Regulatory Matters - The management team highlighted the importance of regulatory compliance and transparency in all business operations to maintain investor trust[120] - The company has not faced any penalties from securities regulatory authorities for the current or past three years[198] - The company emphasizes compliance with laws and regulations, ensuring accurate and timely information disclosure to shareholders[155] Employee and Management Compensation - The total remuneration for the chairman, Mr. Lü Xiangyang, is 5.12 million CNY[200] - The total remuneration for the general manager, Ms. Xing Fenling, is 8.705 million CNY[200] - The total remuneration for the deputy general manager, Mr. Zhang Yi, is 6.727 million CNY[200] - The total remuneration for director, Mr. Wei Xi, is 3.07 million CNY[200]

Financial Performance - Operating revenue for the reporting period was CNY 119,054,919.40, down 33.43% year-on-year[7] - Net profit attributable to shareholders was a loss of CNY 22,979,553.36, representing a decline of 328.70% compared to the same period last year[7] - Basic earnings per share were -CNY 0.0286, a decline of 328.80% compared to the same period last year[7] - The weighted average return on net assets was -2.66%, a decrease of 3.29% compared to the previous year[7] - The net loss for Q3 2020 was CNY 18,156,968.32, compared to a net profit of CNY 8,876,137.98 in the same period last year[45] - The net profit for the current period is a loss of CNY 40,700,682.81, compared to a profit of CNY 3,660,631.80 in the previous period[49] - Total comprehensive income for the current period is a loss of CNY 40,700,682.81, compared to a gain of CNY 3,660,631.80 in the previous period[50] - The net loss for the period was CNY 65,857,571.07, significantly higher than the loss of CNY 1,839,189.21 in the same period last year[58] Cash Flow - The net cash flow from operating activities was CNY 4,182,909.76, a decrease of 75.16% year-on-year[7] - Cash flow from operating activities related to sales decreased by 45.44% year-on-year, mainly due to the sale of equity in subsidiaries[20] - Cash received from operating activities totaled CNY 391,394,841.13, down from CNY 746,078,772.46 in the previous period[61] - The net cash flow from financing activities was -33,630,683.34 CNY, an improvement from -117,228,088.65 CNY in the same period last year[62] - The net cash flow from investment activities was 46,409,164.76 CNY, a significant improvement compared to the previous year's negative cash flow of -101,613,385.56 CNY[62] Assets and Liabilities - Total assets at the end of the reporting period were CNY 972,015,037.75, a decrease of 14.32% compared to the end of the previous year[7] - The total liabilities of the company decreased to 105,683,806.32 yuan as of September 30, 2020, down from 244,007,113.84 yuan at the end of 2019, a reduction of about 56.7%[37] - The total current assets increased to CNY 296,096,031.65 from CNY 193,304,790.67 year-over-year[40] - The total liabilities as of September 30, 2020, were CNY 166,194,738.35, compared to CNY 142,188,875.52 in the previous period[41] - The company reported a total equity of CNY 890,520,367.47, with a capital reserve of CNY 1,344,583,497.93[70] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 54,153[11] - The largest shareholder, Rongjie Investment Holding Group Co., Ltd., held 14.54% of the shares[11] Investment and Subsidiaries - The company reported a loss from equity transfer amounting to CNY 1,755,741.53 during the reporting period[8] - The company completed the transfer of 35% equity in its subsidiary Aima Kang to individual Lei Ping, with the transfer process finalized on January 14, 2020[24] - The company approved the transfer of 100% equity in its wholly-owned subsidiary Foresight to Pan Jianzhong, with the transfer completed by March 27, 2020[24] - The company announced a major asset sale on June 8, 2020, intending to sell 100% equity in Shanghai Ruiyu Fitness Products Co., Ltd. for a cash consideration of 18 million yuan, with the transaction approved by the board on July 17, 2020[25] Research and Development - Research and development expenses decreased by 70.56% year-on-year, mainly due to the sale of subsidiaries and reduced R&D spending[19] - The R&D expenses for Q3 2020 were CNY 2,556,533.20, down from CNY 8,287,673.71 in the previous period[44] - Research and development expenses for the current period amount to CNY 924,157.12, down from CNY 1,178,783.61 in the previous period[48] Financial Adjustments and Standards - The company has made adjustments to its accounting policies in accordance with the new revenue standards effective from January 1, 2020[76] - The implementation of the new revenue standard resulted in a decrease of CNY 2,661,115.85 in prepaid expenses and an increase of the same amount in contract assets[77] - Contract liabilities increased by CNY 6,911,643.74 due to the new revenue standard, reflecting a shift from advance receipts[77]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥236,869,822.93, a decrease of 32.66% compared to ¥351,776,093.41 in the same period last year[16]. - The net profit attributable to shareholders of the listed company was a loss of ¥11,084,714.60, an improvement of 55.84% from a loss of ¥25,102,871.04 in the previous year[16]. - The net cash flow from operating activities was ¥63,182,512.21, down 32.04% from ¥92,965,152.58 in the same period last year[16]. - The total assets at the end of the reporting period were ¥999,998,951.03, a decrease of 11.86% from ¥1,134,527,481.31 at the end of the previous year[16]. - The net assets attributable to shareholders of the listed company were ¥866,453,227.39, down 1.12% from ¥876,231,983.53 at the end of the previous year[16]. - The basic earnings per share were -¥0.0138, an improvement of 55.77% from -¥0.0312 in the same period last year[16]. - The total profit was -4.51 million yuan, an increase of 83.42% year-on-year, while the net profit was -4.47 million yuan, increasing by 83.60% year-on-year[48]. - The company reported a net profit loss of 541,446.38 yuan for the first half of 2020, with total assets of 138,071,670.02 yuan and net assets of 126,278,999.51 yuan[77]. - The company reported a net loss of CNY 1,322,531,875.98 as of June 30, 2020, compared to a loss of CNY 1,311,447,161.38 at the end of 2019[138]. - The company reported a comprehensive income loss of 25,156,888.26 yuan for the current period[166]. Cash Flow and Investments - The net cash flow from investment activities increased significantly by 283.36% to ¥14,493,748.52, compared to a negative cash flow of ¥13,768,345.33 in the previous year, due to effective utilization of idle funds for bank wealth management[51]. - The net cash flow from operating activities decreased by 32.04% to ¥63,182,512.21 from ¥92,965,152.58, indicating a decline in operational income[51]. - The net cash flow from investing activities was CNY 36,704,511.89, a recovery from a negative cash flow of CNY -19,447,080.63 in the previous year[156]. - The total cash inflow from financing activities was CNY 30,000,000.00, while cash outflow was CNY 31,570,648.34, resulting in a net cash flow of CNY -1,570,648.34[156]. - The company raised 30,000,000.00 CNY through borrowings in the first half of 2020, compared to 20,000,000.00 CNY in the same period of 2019[153]. Assets and Liabilities - The company's total assets included cash and cash equivalents of ¥162,652,368.6, representing 16.27% of total assets, an increase from 8.03% in the previous year[56]. - The company's long-term equity investments decreased to ¥110,721,103.2, accounting for 11.07% of total assets, compared to ¥125,118,004.95, which was 11.03% of total assets last year[57]. - The total liabilities at the end of the reporting period were 14,726 million yuan, indicating the company's leverage position[162]. - The company's total liabilities increased to CNY 195,300,963.52 from CNY 142,188,875.52, reflecting a rise of 37.4%[142]. Research and Development - The company accelerated product research and development, resulting in 32 new patent applications and 2 new foreign certifications during the reporting period[46]. - Research and development expenses fell by 71.10% to ¥6,169,410.35 from ¥21,350,660.38, reflecting reduced investment in the wholly-owned subsidiary Anhui Jiugong[51]. - The company has accumulated over 380 patents and has established a strong research and development system in collaboration with several universities[40]. Strategic Initiatives - The company plans to accelerate new product development and optimize product structure to enhance brand influence and market share[79]. - The company aims to expand export regions and seek new international markets to mitigate risks from market competition[78]. - The company is focused on enhancing its market position through strategic asset restructuring and divestitures[108]. Shareholder Information - The company’s controlling shareholder, Rongjie Group, continued to increase its stake by acquiring 14.52 million shares, representing 1.81% of the total share capital[48]. - The total number of common shareholders at the end of the reporting period was 43,563[117]. - The largest shareholder, Rongjie Investment Holding Group Co., Ltd., holds 14.54% of shares, totaling 116,912,302 shares[118]. Corporate Governance - The company has not engaged in significant equity or non-equity investments during the reporting period[60]. - The company has not conducted any investor communications or interviews during the reporting period[81]. - The company has not experienced any major litigation or arbitration matters during the reporting period[90]. - The company has not implemented any employee incentive plans during the reporting period[94]. Market Conditions - The company faced risks from macroeconomic conditions, including reduced orders and difficulties in raw material imports due to global economic slowdown and trade tensions[78]. - The company experienced significant losses in Q1 2020 due to the COVID-19 pandemic, but performance improved in Q2 as measures were implemented[79]. Accounting Policies - The company adheres to the accounting standards and ensures that the financial statements accurately reflect its financial position as of June 30, 2020[176]. - The company uses the Chinese Yuan (RMB) as its functional currency for financial reporting[179]. - The company follows specific accounting policies for bad debt provisions, fixed asset depreciation, and revenue recognition based on its operational characteristics[175].

Financial Performance - Total revenue for Q1 2020 was ¥113,831,468.13, a decrease of 37.95% compared to the same period last year[7]. - Net profit attributable to shareholders was -¥15,407,677.21, an improvement of 24.33% year-over-year[7]. - The company reported a basic earnings per share of -¥0.0192, an improvement of 24.11% year-over-year[7]. - Net loss for Q1 2020 was CNY 13,210,677.54, compared to a net loss of CNY 21,864,997.64 in the same period last year, representing a 39.5% improvement[49]. - The total comprehensive income for the first quarter was -21,335,271.82 CNY, reflecting the same loss as the net profit[54]. Cash Flow and Assets - Net cash flow from operating activities decreased by 55.03% to ¥8,570,859.68 compared to the previous year[7]. - Cash and cash equivalents increased to CNY 108,780,564.21 from CNY 91,059,403.69, representing a growth of approximately 19.5%[39]. - The cash flow from operating activities showed a net inflow of 8,570,859.68 CNY, a decrease from 19,060,850.33 CNY in the previous year[57]. - The company recorded a cash and cash equivalents balance of 108,780,564.21 CNY at the end of the quarter, down from 121,261,056.80 CNY at the end of the previous year[58]. - The total cash and cash equivalents at the end of the period increased to 60,869,169.10 CNY from 53,910,395.63 CNY, reflecting a net increase of 6,958,773.47 CNY[61]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 49,501[10]. - The largest shareholder, Rongjie Investment Holding Group Co., Ltd., held 13.25% of the shares, totaling 106,573,302 shares[10]. - The total net assets attributable to shareholders were ¥860,399,064.37, a decrease of 1.81% from the previous year[7]. Liabilities and Equity - Total liabilities decreased to CNY 170,098,413.85 from CNY 244,007,113.84, reflecting a reduction of about 30.2%[41]. - The company's equity attributable to shareholders decreased to CNY 860,399,064.37 from CNY 876,231,983.53, a decline of approximately 1.8%[42]. - The total equity decreased to CNY 951,368,933.89 from CNY 972,704,205.71 year-over-year[48]. Operational Challenges - The company faced risks from a slowing macroeconomic environment and the global spread of COVID-19, which could lead to reduced or lost orders[24]. - The company is actively managing the impact of the COVID-19 pandemic on its operations by enhancing communication with suppliers and customers[25]. - The company reported a significant market pressure due to the pandemic and economic downturn, affecting business operations[25]. Strategic Initiatives - The company plans to continue enhancing profitability and improving fundamentals by developing new products and markets, and exploring new business growth points[24]. - The company aims to enhance new product development and business expansion despite facing challenges such as talent shortages and slow R&D progress[25]. - The company is focused on optimizing product structure and reducing production costs to improve overall competitiveness[25]. Accounting Changes - The company implemented new revenue and leasing standards starting January 1, 2020, affecting the financial statements[62]. - The company implemented new revenue recognition standards effective January 1, 2020, impacting the balance sheet by reclassifying prepayments and contract liabilities[70]. - The total assets and liabilities as of January 1, 2020, were adjusted according to the new revenue recognition standards, affecting various balance sheet items[70]. Investment and Fundraising - The total amount of raised funds is 448 million RMB, with 388.47 thousand RMB invested in the current quarter[30]. - Cumulative investment from raised funds amounts to 429 million RMB, with 11.16% of funds having been repurposed[30]. - The company received 184,900,000.00 CNY from the recovery of investments, an increase from 113,000,000.00 CNY in the previous year[57].

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]