Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 544,504,000, a decrease of 2% compared to RMB 555,531,000 in the same period of 2023[4]. - Gross profit for the reporting period was RMB 194,966,000, down 20.4% from RMB 245,316,000 in the previous year[4]. - Profit from operations increased to RMB 50,761,000, representing a 27.8% rise from RMB 39,721,000 in 2023[4]. - Profit before taxation was RMB 48,292,000, up 32.4% from RMB 36,474,000 in the same period last year[4]. - Net profit attributable to owners of the Company was RMB 37,907,000, an increase of 26.9% compared to RMB 29,881,000 in 2023[5]. - Basic and diluted earnings per share rose to RMB 2.26 cents, compared to RMB 1.78 cents in the previous year[5]. - Total comprehensive income for the period was RMB 41,254,000, up from RMB 31,090,000 in 2023[4]. - The company reported a profit of RMB 37,907,000 for the six months ended June 30, 2024, compared to RMB 29,881,000 for the same period in 2023, indicating a year-over-year increase of about 26.8%[9]. Assets and Liabilities - Current assets as of June 30, 2024, totaled RMB 930,660,000, compared to RMB 920,584,000 at the end of 2023[6]. - Non-current assets amounted to RMB 494,344,000, slightly down from RMB 495,062,000 at the end of 2023[6]. - As of June 30, 2024, net current assets increased to RMB 599,878,000 from RMB 554,404,000 at the end of 2023, representing an increase of approximately 8.2%[7]. - Total equity rose to RMB 1,057,436,000 as of June 30, 2024, compared to RMB 1,016,182,000 at the end of 2023, marking an increase of about 4.1%[8]. - The company generated RMB 21,217,000 from operating activities in the first half of 2024, compared to a cash outflow of RMB 52,320,000 in the same period of 2023, indicating a significant turnaround[10]. - Cash and cash equivalents at the end of the period were RMB 311,947,000, up from RMB 237,442,000 at the end of June 2023, representing a growth of approximately 31.4%[11]. - Interest-bearing borrowings decreased slightly to RMB 83,780,000 as of June 30, 2024, from RMB 85,417,000 at the end of 2023, a reduction of about 1.9%[7]. - The company’s total assets less current liabilities increased to RMB 1,094,222,000 from RMB 1,049,466,000, reflecting an increase of approximately 4.3%[7]. Revenue Breakdown - Revenue from manufacturing and selling of medicines and medical devices was RMB 295,150,000, down 27.5% from RMB 407,492,000 in 2023[17]. - Revenue from sales and distribution of medicines, healthcare products, and medical devices increased by 68.3% to RMB 249,354,000 from RMB 148,039,000 in 2023[17]. - Total revenue from manufacturing and selling medicines and medical devices was RMB 295,150,000 for the six months ended June 30, 2024, down from RMB 407,492,000 in 2023, reflecting a decrease of approximately 27.5%[30]. - Revenue from the sales of medicines and healthcare products decreased to RMB 423,917,000 for the six months ended June 30, 2024, down from RMB 446,340,000 in the same period of 2023, representing a decline of approximately 5.5%[29]. - Sales of medical devices increased to RMB 120,587,000 for the six months ended June 30, 2024, compared to RMB 109,191,000 in the same period of 2023, marking an increase of about 10.8%[29]. Expenses and Costs - The Group's total cost of inventories for the six months ended June 30, 2024, was RMB 338,296,000, compared to RMB 297,569,000 in 2023, reflecting an increase of approximately 13.7%[33]. - The Group's selling and distribution expenses were approximately RMB 82,983,000, representing a decrease of approximately 43.84% from approximately RMB 147,759,000 for the corresponding period of last year[134]. - The Group's other operating expenses and impairment/reversal on trade and other receivables, net amounted to approximately RMB 25,546,000, representing an increase of approximately 12.96% from approximately RMB 22,615,000 for the corresponding period of last year[135]. - Research and development costs increased to RMB 18,057,000 for the six months ended June 30, 2024, compared to RMB 14,518,000 in the same period of 2023, representing an increase of approximately 24.5%[35]. Taxation - The current tax expense for the six months ended June 30, 2024, was RMB 8,378,000, up from RMB 5,896,000 in 2023, indicating an increase of about 42.2%[38]. - The Group's tax rate for its subsidiaries in China is 25%, while three subsidiaries qualified for a reduced tax rate of 15% as "high-tech enterprises"[40]. Corporate Governance and Structure - The Company has adopted a code of conduct regarding securities transactions by Directors, ensuring compliance with GEM Listing Rules[158]. - The Company established an Audit Committee on 21 August 2005, responsible for reviewing annual reports and financial statements[162]. - The roles of the Chairman and General Manager are separate, with Mr. Zhang Feng serving as the current Chairman[162]. - The Company aims to enhance its corporate governance standards continuously[162]. Related Party Transactions - Related party transactions included sales of goods to Shenzhen Neptunus Pharmaceutical Company Limited totaling RMB 28,847,000 for the six months ended June 30, 2024, compared to RMB 30,336,000 in 2023[59]. - The company engaged in related party transactions, with total sales of goods to related parties amounting to RMB 2,489,000 from Jilin Neptunus Jiankang Technology Development Company Limited in 2024, down from RMB 4,233,000 in 2023, a decrease of 41.3%[79]. - The total amounts due from related parties reached RMB 54,123,000 as of June 30, 2024, compared to RMB 44,363,000 at December 31, 2023, reflecting a growth of 22%[114]. Shareholding and Capital Structure - As of June 30, 2024, Neptunus Bio-engineering held approximately 73.51% of the entire issued share capital of the Company, with 70.38% directly held and 3.13% indirectly held through Shenzhen Neptunus Oriental Investment Company Limited[152]. - Neptunus Bio-engineering directly owned 1,181,000,000 domestic shares, representing 94.33% of all domestic shares and approximately 70.38% of the Company's issued share capital[154]. - The Company has maintained a stable ownership structure with substantial shareholders holding significant percentages of the issued share capital[154]. Operational Developments - The Group operates two pharmaceutical production bases in Fuzhou and Beijing, with Fuzhou holding 366 approval documents for various medicines, including 207 listed in the National Medical Insurance Catalogue[123]. - The Group continues to invest in the research and development of new medicines and the consistency evaluation of generic medicines[124]. - Neptunus Zhongxin is undergoing operational transformation, including marketing model changes and organizational restructuring, to improve profitability[131].
海王英特龙(08329) - 2024 - 中期财报