Financial Performance - Revenue for the six months ended June 30, 2019, was RMB 299,404,000, a decrease of 4.3% compared to RMB 312,070,000 for the same period in 2018[5] - Gross profit for the same period was RMB 248,926,000, down 2.9% from RMB 256,522,000 in 2018[5] - Operating profit for the six months was RMB 62,985,000, a decrease of 3.9% compared to RMB 65,490,000 in 2018[5] - Profit attributable to shareholders for the six months was RMB 53,473,000, down 3.8% from RMB 55,522,000 in 2018[5] - Basic earnings per share for the six months was 9.54 cents, compared to 9.91 cents in 2018[5] - For the six months ended June 30, 2019, the total revenue was RMB 320,411,000, a decrease of 2.3% compared to RMB 328,453,000 for the same period in 2018[18] - The net profit for the six months ended June 30, 2019, was RMB 53,472,000, compared to RMB 55,522,000 for the same period in 2018, reflecting a decrease of 3.8%[23] - The basic earnings per share for the six months ended June 30, 2019, was RMB 0.095, compared to RMB 0.099 for the same period in 2018[23] Cash Flow and Assets - Cash inflow from operating activities was RMB 47,214,000, a significant improvement from a cash outflow of RMB 40,675,000 in 2018[8] - Total assets as of June 30, 2019, were RMB 1,575,295,000, compared to RMB 1,554,861,000 as of December 31, 2018[7] - Total liabilities as of June 30, 2019, were RMB 388,798,000, compared to RMB 421,836,000 as of December 31, 2018[7] - Net cash and cash equivalents at the end of the period were RMB 148,617,000, down from RMB 159,026,000 at the beginning of the period[8] - As of June 30, 2019, the company had cash and bank balances of approximately RMB 148,617,000, with a total net asset value of approximately RMB 1,186,497,000[47] - The company’s non-current assets at the end of June 30, 2019, were RMB 15,068,000, unchanged from the previous year[31] - The company’s trade receivables as of June 30, 2019, totaled RMB 276,343,000, compared to RMB 249,326,000 as of December 31, 2018[39] Expenses and Taxation - The operating profit for the six months ended June 30, 2019, included depreciation of RMB 10,638,000, down from RMB 16,716,000 in the same period of 2018[20] - The income tax expense for the six months ended June 30, 2019, was RMB 9,449,000, slightly lower than RMB 9,875,000 for the same period in 2018[20] - Selling expenses accounted for 61% of revenue for the six months ended June 30, 2019, a decrease from 62.3% in the same period of 2018[44] - General and administrative expenses increased from RMB 12,809,000 for the six months ended June 30, 2018, to RMB 24,798,000 for the same period in 2019[44] - The applicable income tax rate remained at 15% for both 2019 and 2018[20] Dividends and Shareholder Information - The company did not declare any dividends for the current period, consistent with the previous year[5] - The company did not recommend any interim dividend for the six months ended June 30, 2019, consistent with the previous year[24] - The major shareholder, Mr. Zhang Hong, holds 101,937,000 shares, representing 26.29% of domestic shares and 18.19% of total registered capital[54] - The company has not repurchased, sold, or redeemed any of its listed shares during the six-month period ending June 30, 2019[67] Corporate Governance and Future Outlook - The company has established an audit committee composed of three independent non-executive directors to oversee financial procedures and internal controls[63] - The company will continue to explore potential business opportunities to drive growth and achieve better results in the future[52] - The company has adopted a code of conduct for securities trading that meets or exceeds the standards set by GEM listing rules[61] - The board of directors includes 6 executive directors and 3 independent non-executive directors[68] - The mid-year performance report will be published on the GEM website for seven consecutive days starting from the publication date[69] - The report is dated August 14, 2019, indicating a mid-year performance review[70] Business Operations - The company operates solely in the production and distribution of traditional Chinese medicine and pharmaceutical products within China[20] - The company has invested in research and development in the food and health sectors to enhance its pharmaceutical research capabilities[45] - The company completed the construction and commissioning of equipment for its wholly-owned subsidiary, Jilin Changlong Food and Beverage Co., Ltd., and launched the product "Changbai Mountain Wild Walnut Milk"[45] - The company employed 870 employees as of June 30, 2019, an increase from 520 employees on June 30, 2018[66] - The company has not recognized any significant deferred tax assets for the periods ended June 30, 2019, and 2018[21]
吉林长龙药业(08049) - 2019 - 中期财报