Financial Performance - The company's operating revenue for the first half of 2022 was ¥134,095,511.08, a decrease of 19.76% compared to ¥167,126,754.69 in the same period last year[20]. - The net profit attributable to shareholders was ¥25,462,588.00, down 15.64% from ¥30,182,461.57 year-on-year[20]. - The net profit after deducting non-recurring gains and losses was ¥15,374,644.30, reflecting a significant decline of 42.31% compared to ¥26,651,016.66 in the previous year[20]. - The net cash flow from operating activities was ¥22,983,043.12, a decrease of 53.52% from ¥49,446,454.87 in the same period last year[20]. - Basic earnings per share were ¥0.1591, down 36.74% from ¥0.2515 in the previous year[20]. - Total operating revenue for the first half of 2022 was ¥134,095,511.08, a decrease of 19.8% compared to ¥167,126,754.69 in the first half of 2021[147]. - Total operating costs decreased to ¥116,962,376.67 in the first half of 2022, down 14.2% from ¥136,364,286.55 in the same period of 2021[148]. - Net profit for the first half of 2022 was ¥25,462,588.00, representing a decline of 15.7% from ¥30,182,461.57 in the first half of 2021[149]. - The total profit for the first half of 2022 was ¥28,757,180.19, down from ¥35,055,549.07 in the first half of 2021[148]. Assets and Liabilities - Total assets at the end of the reporting period were ¥815,877,279.89, a decrease of 1.25% from ¥826,198,080.76 at the end of the previous year[20]. - The net assets attributable to shareholders were ¥750,716,220.01, showing a slight decrease of 0.02% from ¥750,853,632.01 at the end of the previous year[20]. - Current assets totaled CNY 682,231,264.41, down from CNY 708,843,441.99, indicating a decrease of about 3.73%[139]. - Total liabilities decreased from CNY 75,344,448.75 to CNY 65,161,059.88, a decline of about 13.9%[141]. - Non-current assets totaled CNY 133,646,015.48, up from CNY 117,354,638.77, reflecting an increase of approximately 13.9%[140]. Investment and R&D - The company reported a total non-recurring gains and losses of RMB 10,087,943.70, with government subsidies contributing RMB 4,381,442.77 and investment management gains of RMB 6,013,612.39[24]. - The company’s R&D investment was ¥5,133,172.71, reflecting a decrease of 4.07% year-on-year[42]. - The company launched 2 new R&D projects during the reporting period, focusing on innovative drug formulations and improvements[37]. - The company has established a mature R&D system and team, focusing on the innovation and improvement of traditional Chinese medicine products[74]. Market and Sales - The new retail division generated sales revenue of 12.15 million yuan, a significant increase of 343.01% year-on-year, accounting for 9.06% of total revenue, up from 1.64% in the previous year[37]. - Sales expenses increased by 2.43% year-on-year as the company intensified marketing efforts to expand its sales market[36]. - The company has a strategic focus on expanding its product offerings and enhancing its market presence in the pharmaceutical sector[29]. - The company has developed high internal control standards for product quality, exceeding legal requirements, with several products recognized for their quality[40]. Cash Flow - The net cash flow from operating activities for the first half of 2022 was ¥22,983,043.12, a decrease of 53.6% compared to ¥49,446,454.87 in the same period of 2021[154]. - The total cash outflow from financing activities was ¥34,802,450.01, compared to only ¥600,000.00 in the same period last year, indicating increased dividend payments and interest[157]. - The net cash outflow from investment activities reached ¥331,641,140.23, compared to a net outflow of ¥29,909,171.31 in the previous year, reflecting increased investment expenditures[157]. Corporate Governance - The company plans not to distribute cash dividends or issue bonus shares for the semi-annual period[83]. - There were no changes in the company's board of directors, supervisors, or senior management during the reporting period[82]. - The company has not implemented any stock incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[84]. - The financial report for the first half of 2022 has not been audited[137]. Compliance and Risk Management - The management has highlighted the importance of risk awareness regarding future plans and projections[3]. - The company faces risks related to policy changes in the pharmaceutical industry, which could impact its operations if not addressed effectively[75]. - The company has implemented strict quality control measures to ensure its products meet safety and efficacy standards[75]. - The company maintains a strong commitment to environmental protection, adhering to relevant laws and regulations, and is not classified as a key pollutant discharge unit[87]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 18,859[125]. - Guangdong Jino Health Technology Co., Ltd. holds 45.00% of shares, totaling 72,000,000 shares[125]. - The company’s shareholding structure shows a decrease in state-owned shares by 5,861 shares, maintaining a total of 5,084,760 shares (3.18%)[120]. - The company has issued a total of 2,463,200 restricted shares during the reporting period[126]. Strategic Initiatives - The company is actively involved in the research and development of traditional Chinese medicine, aligning with national policies to promote the industry[29]. - The company is positioned to benefit from favorable government policies aimed at enhancing the development of traditional Chinese medicine[29]. - The company has established a stable supply chain and maintains fair supplier management procedures to protect supplier rights[90].

Revenue and Profitability - The company's revenue for Q1 2022 was ¥60,179,981.94, a decrease of 5.01% compared to ¥63,354,313.80 in the same period last year[3] - Net profit attributable to shareholders increased by 27.41% to ¥13,096,502.82 from ¥10,278,893.07 year-on-year[3] - The company achieved operating revenue of 60.18 million RMB, a year-on-year decrease of 5.01%, primarily due to a reduction in mask product sales revenue by 2.6989 million RMB[17] - The net profit attributable to shareholders increased by 27.41% to 13.6905 million RMB, mainly due to new government subsidies and interest income from cash management of idle funds[17] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 7.2511 million RMB, a year-on-year decrease of 5.22%, primarily due to a decrease in gross profit from mask product sales by 1.0222 million RMB[17] - The total comprehensive income for the first quarter was CNY 13,096,502.82, compared to CNY 10,278,893.07 in the previous period, representing a year-over-year increase of approximately 27.3%[25] Cash Flow and Investments - The net cash flow from operating activities decreased by 30.51% to ¥12,302,965.05, down from ¥17,703,530.84 in the previous year[3] - The cash flow from investing activities showed a drastic decline of 2,532.12%, resulting in a net outflow of ¥352,087,471.95 compared to an inflow of ¥14,476,587.67 last year[10] - Cash inflow from operating activities totaled CNY 81,267,104.24, compared to CNY 76,926,981.86 in the previous period, indicating a growth of approximately 5.5%[28] - Cash outflow from operating activities was CNY 68,964,139.19, up from CNY 59,223,451.02, reflecting an increase of about 16.5%[28] - The net increase in cash and cash equivalents for the period was CNY -351,399,901.25, contrasting with an increase of CNY 32,096,234.17 in the previous period[29] Assets and Liabilities - Total assets at the end of the reporting period were ¥830,291,181.80, reflecting a 0.50% increase from ¥826,198,080.76 at the end of the previous year[3] - The total liabilities decreased to CNY 66,376,482.16 from CNY 75,344,448.75, indicating a reduction of 11.7%[22] - Current assets totaled CNY 715,311,968.70, showing a marginal increase from CNY 708,843,441.99 in the previous period[20] - The company's cash and cash equivalents were CNY 92,602,804.75, compared to CNY 485,348,842.98 in the previous year, indicating a significant decrease[20] Shareholder Information - The total number of common stock shareholders at the end of the reporting period was 31,716[12] - Guangdong Jinou Health Technology Co., Ltd. holds 45.00% of shares, totaling 72 million shares[12] - The top 10 shareholders collectively hold a significant portion of the company's shares, with the largest shareholder holding 45%[12] - The company has a total of 121,968,764 restricted shares at the end of the reporting period[16] - The company plans to release 13,100 shares from strategic placement on December 7, 2022[16] Operational Performance - The company's weighted average return on equity decreased to 1.77% from 3.13% year-on-year, a decline of 1.36%[3] - The company reported a gross profit margin of approximately 13.5% for Q1 2022, compared to 11.5% in the same period last year[23] - The company has maintained stable pharmaceutical sales despite fluctuations in mask product sales[17] - The company is exploring new government subsidies to enhance profitability in future quarters[17] - The company plans to focus on market expansion and new product development in the upcoming quarters[24] Other Income and Expenses - The company reported a significant increase in investment income, rising by 34,151.87% to ¥2,571,236.40 from ¥7,506.85 in the previous year[8] - The company experienced a 248.94% increase in other income, amounting to ¥3,539,913.60 compared to ¥1,014,466.55 in the same period last year[8] - The company reported a 100% decrease in asset disposal income, with no income recorded in the current period compared to a loss of ¥11,209.85 in the previous year[8] - Research and development expenses for Q1 2022 were CNY 2,711,800.92, slightly down from CNY 2,829,323.83 in Q1 2021[24]

Financial Performance - The company's operating revenue for 2021 was CNY 349,788,913.72, representing a 2.59% increase compared to CNY 340,956,598.40 in 2020[16]. - The net profit attributable to shareholders for 2021 was CNY 57,181,856.40, a decrease of 8.54% from CNY 62,521,668.05 in 2020[16]. - The net profit after deducting non-recurring gains and losses was CNY 54,994,558.06, down 2.99% from CNY 56,692,093.13 in 2020[16]. - The net cash flow from operating activities decreased by 21.21% to CNY 71,626,612.47 from CNY 90,904,196.83 in 2020[16]. - The total assets at the end of 2021 were CNY 826,198,080.76, an increase of 115.28% from CNY 383,776,202.06 at the end of 2020[16]. - The net assets attributable to shareholders increased by 132.17% to CNY 750,853,632.01 from CNY 323,406,104.12 at the end of 2020[16]. - The basic earnings per share for 2021 were CNY 0.48, a decrease of 7.69% from CNY 0.52 in 2020[16]. - The weighted average return on equity for 2021 was 16.23%, down from 21.14% in 2020[16]. Revenue Breakdown - The company's total revenue for the first quarter was approximately CNY 63.35 million, with a peak of CNY 103.77 million in the second quarter, followed by CNY 84.86 million in the third quarter and CNY 97.80 million in the fourth quarter[18]. - The net profit attributable to shareholders for the second quarter was CNY 19.90 million, representing a significant increase compared to CNY 10.28 million in the first quarter[18]. - Sales revenue from mask products was CNY 13.37 million, down 77.63% year-on-year, with a gross profit of CNY 405,200, a decline of 98.48%[37]. - Pharmaceutical sales revenue reached CNY 336.07 million, an increase of 20.16% year-on-year, with a gross margin of 72.04%[43]. - Core products, including Sanqi Jiangtang Pian and Xiaoyao San, generated sales of CNY 195 million, up 29.29% year-on-year[37]. Research and Development - R&D investment totaled CNY 10.87 million, accounting for 3.11% of operating revenue, with four invention patents applied for during the year[38]. - Research and development expenses were 10,866,555.59 yuan, a 3.00% increase from 10,549,589.94 yuan in the previous year[52]. - The company is conducting a re-evaluation study on the bitter wood injection, which includes chemical composition analysis and quality evaluation, aimed at improving product quality and safety[53]. - The company has completed the research on the classic prescription "Bao Yin Decoction," which is expected to facilitate market promotion due to its established efficacy[53]. Product Development and Market Position - The company reported a total of 101 drug approval numbers, including 32 original innovative products and 39 products listed in the national medical insurance directory[28]. - The company has expanded its product range to include masks due to the COVID-19 pandemic, with products such as disposable medical masks and KN95 masks[28]. - The company is positioned in the rapidly growing traditional Chinese medicine market, which is expected to maintain stable growth due to increasing demand and supportive government policies[26]. - The company has established strategic partnerships with top 100 chain pharmacies, enhancing brand influence and sales capabilities[38]. Quality Control and Compliance - Quality management is strictly enforced throughout the production process, ensuring compliance with GMP standards and exceeding legal quality benchmarks[35]. - The company has established a comprehensive quality control system, with all products undergoing strict batch testing and approval before release[32]. - The company has implemented strict quality control measures throughout the production, testing, and storage processes to ensure compliance with the Chinese Pharmacopoeia standards[85]. Governance and Management - The company has established a governance structure that complies with relevant laws and regulations, ensuring independent operation from its controlling shareholder[92]. - The board of directors consists of 7 members, including 3 independent directors, ensuring compliance with legal requirements and effective governance[92]. - The company actively engages in investor relations, providing transparent information disclosure and maintaining communication with shareholders[93]. - The internal audit committee is responsible for overseeing the execution of internal control systems and reviewing financial information to ensure operational integrity[94]. Environmental Responsibility - The company is not classified as a key pollutant discharge unit by environmental protection authorities and has not faced any significant environmental penalties during the reporting period[131]. - The company has implemented wastewater treatment measures that comply with the Guangdong Province water pollution discharge standards, ensuring that wastewater is treated before entering municipal sewage systems[131]. - Air emissions from the company's production processes are treated to meet the pharmaceutical industry air pollutant discharge standards, utilizing dust removal equipment and ventilation systems[132]. - Solid waste management includes recycling of general solid waste and safe disposal of hazardous waste by licensed units, ensuring compliance with environmental regulations[132]. Shareholder Relations and Commitments - The company plans to enhance its governance structure and internal management mechanisms to ensure effective decision-making and operational compliance[82]. - The company committed to strictly adhere to the profit distribution policy as outlined in its articles of association post-listing[138]. - The controlling shareholder, Guangdong Jino Health Technology Co., Ltd., has ensured that all related party transactions have been fully disclosed and conducted at fair market prices[140]. - The company will ensure that all related party transactions are conducted in accordance with the company's decision-making procedures to protect the interests of minority shareholders[140]. Future Outlook - The company expects revenue growth of 20% for the upcoming fiscal year, driven by new product launches and market expansion[143]. - New product lines are expected to launch in Q2 2024, projected to generate 10 million in additional revenue[143]. - Future guidance indicates a focus on sustainability initiatives, aiming for a 50% reduction in carbon emissions by 2025[143].