NO.1 PHARMACY(SH:600833)2016-08-30 16:00Financial Performance - The company achieved operating revenue of CNY 802.89 million, a year-on-year increase of 2.48% compared to CNY 783.49 million in the same period last year[16]. - The net profit attributable to shareholders of the listed company was CNY 24.11 million, reflecting a growth of 3.96% from CNY 23.19 million in the previous year[16]. - Operating revenue for the current period reached ¥802,890,446.64, an increase of 2.48% compared to the same period last year[26]. - Operating costs increased to ¥679,886,991.81, reflecting a rise of 1.46% year-on-year[26]. - Net profit for the first half of 2016 was CNY 24,112,595.91, compared to CNY 23,193,586.96 in the previous year, representing a growth of 3.9%[65]. - The company reported an operating profit of CNY 29,941,667.26, an increase from CNY 27,601,138.27, reflecting a growth of 8.5%[65]. - The comprehensive income for the current period shows a total loss of 59,771,485.06, indicating a significant decline in performance[75]. - The comprehensive income for the current period shows a total loss of RMB 44,933,382.94, compared to a gain of RMB 137,142,633.59 in the previous period, indicating a significant decline in profitability[81]. Cash Flow and Assets - The net cash flow from operating activities decreased by 10.46%, amounting to CNY 47.93 million compared to CNY 53.53 million in the same period last year[16]. - Cash flow from operating activities decreased by 10.46% to ¥47,930,530.71 compared to the previous year[26]. - The company's operating cash inflow for the first half of 2016 was CNY 839,311,957.60, a slight decrease of 0.5% compared to CNY 845,355,510.08 in the same period last year[70]. - The company's net increase in cash and cash equivalents was CNY 46,935,565.50, down from CNY 56,284,583.65 in the previous year[70]. - The ending balance of cash and cash equivalents was CNY 246,500,232.53, an increase from CNY 219,308,429.15 at the end of the previous period[70]. - The company's cash and cash equivalents at the end of the period amounted to ¥246,800,232.53, an increase from ¥199,864,667.03 at the beginning of the period, representing a growth of approximately 23.4%[162]. - The total current assets increased to ¥616,563,197.17 from ¥604,324,503.02, representing a growth of approximately 1.03%[58]. - The company reported a decrease in total assets to ¥1,159,067,667.60 from ¥1,230,134,681.83, a decline of about 5.8%[59]. Liabilities and Equity - The company’s total liabilities decreased from CNY 295,213,032.67 to CNY 256,927,936.86, a reduction of approximately 13.0%[62]. - Total equity decreased from CNY 787,813,184.52 to CNY 742,879,801.58, a decline of about 5.7%[62]. - Total liabilities decreased to ¥411,635,623.20 from ¥447,043,748.28, showing a decline of approximately 7.9%[59]. - Total equity decreased to ¥747,432,044.40 from ¥783,090,933.55, a decrease of about 4.5%[59]. - The total liabilities and equity amounted to CNY 999,807,738.44, down from CNY 1,083,026,217.19, a decrease of approximately 7.7%[62]. - The total equity attributable to the parent company at the end of the period is 747,432,044.40, a decrease of 35,658,889.15 compared to the previous period[75]. - The total equity at the end of the reporting period is RMB 742,879,801.58, down from RMB 787,813,184.52 at the end of the previous period, representing a decrease of approximately 5.7%[78]. Investments and Financial Management - Investment income dropped significantly by 94.61% to ¥205,245.06, due to the absence of dividend declarations from China Haicheng in the current period[27]. - The company has signed a financial service agreement with Bailian Group Financial Co., Ltd., providing a total deposit balance not exceeding RMB 25 million and a financing limit also not exceeding RMB 25 million[47]. - The company reported an increase in interest income contributing to the rise in financial expenses during the reporting period[25]. - Financial expenses decreased by 31.10% to -¥5,202,119.31, attributed to increased interest income during the reporting period[27]. Operational Strategy and Market Position - The company is actively exploring the integration of traditional operations with internet technology, establishing cloud hospital service processes and pilot service stations[22]. - The company has expanded its online business channels, optimizing its strategy on the "Tmall" platform and launching on "1号店" to enhance online market presence[22]. - The company is focusing on introducing health-related products and optimizing its product categories to meet the upgraded market consumption demands[23]. - The company aims to enhance the cultural connotation of its time-honored brands and seeks to combine health culture with the market for food and medicine[23]. - The company’s core competitiveness remained unchanged during the reporting period[32]. Accounting and Financial Reporting - The company prepares financial statements based on the going concern assumption, adhering to the accounting standards issued by the Ministry of Finance and relevant regulations[85]. - The financial statements accurately reflect the company's financial position, operating results, and cash flows in accordance with accounting standards[88]. - The company confirms its ability to continue as a going concern for at least 12 months from the end of the reporting period[86]. - The company uses Renminbi as its functional currency for accounting purposes[91]. - The company recognizes revenue from joint operations based on its share of the output generated from the joint arrangement[105]. Inventory and Receivables Management - Accounts receivable rose to ¥154,342,303.74, up from ¥128,084,575.99, indicating a significant increase of about 20.5%[58]. - The ending balance of inventory is 208,521,547.58 RMB, with a decrease from the beginning balance of 262,450,074.41 RMB, indicating a reduction of approximately 20.5%[182]. - The company assesses accounts receivable for bad debt provision based on a significant amount criterion of over 1 million yuan[112]. - The aging analysis method is used for bad debt provision, with provisions set at 5% for accounts receivable within one year, 10% for 1-2 years, 20% for 2-3 years, and 100% for over 3 years[114].