千红制药(002550) - 2025 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides essential preliminary information for the report, including guarantees, navigation, and key terminology Important Notice The board, supervisory board, and senior management guarantee the report's accuracy, with financial officers confirming financial statements, and investors are advised to review risks in 'Management Discussion and Analysis' - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[6] Table of Contents This section provides a structural overview of the semi-annual report, listing nine main chapters and their page numbers for investor navigation Definitions This section defines key terms used in the report, including company entities, regulatory bodies like GMP, FDA, NMPA, and core products such as heparin, kallikrein, elastase, and asparaginase Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and a summary of its key financial performance and position for the reporting period Company Profile This section details Changzhou Qianhong Bio-pharma Co., Ltd.'s fundamental information, including stock details, legal representatives, and contact information, noting no changes during the reporting period Key Accounting Data and Financial Indicators The company's 2025 semi-annual operating revenue slightly increased, net profit attributable to shareholders and basic earnings per share significantly grew, while net cash flow from operating activities substantially decreased, with total assets and net assets attributable to shareholders both increasing 2025 Semi-Annual Key Accounting Data and Financial Indicators | Metric | Current Period (CNY) | Prior Year Period (CNY) | Year-over-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 861,771,495.13 | 855,595,853.50 | 0.72 | | Net Profit Attributable to Shareholders of Listed Company | 258,050,517.71 | 182,792,344.63 | 41.17 | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses | 198,685,959.45 | 179,458,898.80 | 10.71 | | Net Cash Flow from Operating Activities | 145,836,181.44 | 284,194,484.83 | -48.68 | | Basic Earnings Per Share (CNY/share) | 0.2065 | 0.1457 | 41.73 | | Diluted Earnings Per Share (CNY/share) | 0.2065 | 0.1457 | 41.73 | | Weighted Average Return on Net Assets | 9.84% | 7.60% | 2.24% | | End of Current Period (CNY) | End of Prior Year (CNY) | Change from Prior Year-End (%) | | | Total Assets | 2,872,071,444.00 | 2,830,441,261.34 | 1.47 | | Net Assets Attributable to Shareholders of Listed Company | 2,625,725,037.86 | 2,517,442,607.50 | 4.30 | Non-Recurring Gains and Losses and Amounts This section lists non-recurring gains and losses for the reporting period, primarily government subsidies, fair value changes in financial assets, and reversal of impairment provisions for receivables, totaling CNY 59,364,558.26 contribution to net profit 2025 Semi-Annual Non-Recurring Gains and Losses and Amounts | Item | Amount (CNY) | | :--- | :--- | | Government subsidies recognized in current profit and loss (excluding those closely related to the company's normal operations, compliant with national policies, enjoyed under fixed standards, and having a continuous impact on the company's profit and loss) | 5,052,055.56 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains and losses from disposal of financial assets and liabilities, excluding effective hedge accounting related to normal business operations | 9,474,223.75 | | Reversal of impairment provisions for receivables subject to separate impairment testing | 56,831,059.73 | | Other non-operating income and expenses apart from the above items | -224,516.26 | | Less: Income tax impact | 10,037,892.41 | | Impact on minority interests (after tax) | 1,730,372.11 | | Total | 59,364,558.26 | Management Discussion and Analysis This section provides a comprehensive analysis of the company's operational performance, industry trends, core businesses, and strategic initiatives during the reporting period Main Business Activities During the Reporting Period This section details the company's operating performance, industry development, main businesses, product uses, and operating model, highlighting steady performance, innovation in R&D, and strategic investments in raw materials Analysis of Company's Operating Performance During the Reporting Period The company's operating performance in the first half of 2025 showed steady improvement with growth in operating revenue and net profit, driven by optimized production and sales strategies, increased sales of main products, and improved gross margins, alongside significant progress in innovative drug R&D and upstream raw material investments 2025 First Half Operating Performance | Metric | Amount (CNY 100 million) | Year-over-Year Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 8.62 | - | | Net Profit Attributable to Shareholders of Listed Company | 2.58 | 41.17 | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses | 1.99 | 10.71 | - The company has four innovative drugs in Phase II clinical trials or nearing Phase III, with multiple others in Phase I clinical trials[29] - The original Class I new drug QHRD107 capsules have completed Phase IIa clinical trials and are in the process of applying to the CDE for Phase IIb clinical studies[29] - The original Class I new drug QHRD106 injection has completed Phase II clinical trials and is in the process of applying to the CDE for Phase III clinical studies[29] - The Henan Qianmu Biopharmaceutical project has successfully commenced production, aiming to enhance the company's core product competitiveness and industrial scale[29] Industry Development Status The biopharmaceutical industry, a high-tech and innovative strategic emerging sector, is experiencing continuous demand growth driven by "Healthy China" strategy and an aging population, with innovation in new drugs and biotechnology leading a shift towards high-quality development despite challenges - The biopharmaceutical industry is one of the most active strategic emerging industries globally, characterized by the highest innovation and technological content[30] - In 2025, China's pharmaceutical industry shows a pattern of "overall pressure, partial differentiation," with innovative drugs, biotechnology, and high-end medical devices breaking through against the trend[30] - The state emphasizes innovative development in the pharmaceutical industry, with "innovative drugs" explicitly mentioned in the government work report for the first time, supporting their development[31] - Leading industry enterprises are actively leveraging new technologies like Artificial Intelligence (AI) to empower drug design, clinical trials, and commercialization, driving the industry's transformation from "quantity" to "quality"[31] Company's Main Business, Products, Uses, and Operating Model During the Reporting Period The company's core business involves pharmaceutical production, wholesale, retail, and import/export, focusing on medicinal enzymes and polysaccharide biochemical drugs like kallikrein, compound digestive enzymes, asparaginase, elastase, heparin sodium, and low molecular weight heparin, used in cardiovascular, diabetes complications, indigestion, and oncology treatments, employing a diversified marketing model for both international and domestic markets, and advancing multiple innovative drug pipelines - The company's main products are two major series of biochemical drugs: medicinal enzymes and polysaccharides, including kallikrein, compound digestive enzymes, asparaginase, elastase, heparin sodium, and low molecular weight heparin series[33] - Kallikrein series is primarily used for microcirculatory disorders, such as diabetic nephropathy and peripheral neuropathy[39] - Heparin sodium and low molecular weight heparin products are used for preventing and treating thrombosis or embolic diseases, and for anticoagulation in extracorporeal circulation during hemodialysis[37] - The company has four innovative drugs in Phase II clinical trials or nearing Phase III, including QHRD107 capsules (acute myeloid leukemia), QHRD106 injection (acute ischemic stroke), QHRD211 injection (growth hormone deficiency), and QHRD110 capsules (malignant glioma)[40] - The company implements a market expansion and marketing model that emphasizes both international and domestic markets, with domestic sales utilizing self-operation, dealer recruitment, and diversified channels, while international markets are accessed through cooperative models in Europe, America, and Japan[38][41] Company's Product Market Position, Competitive Advantages and Disadvantages, Main Performance Drivers, and Alignment with Industry Development During the Reporting Period The company holds a leading position in natural biochemical raw materials and preparations extracted from porcine organs, boasting a full industry chain advantage from raw material sourcing to finished products, further strengthened by strategic partnerships and new projects, with key products maintaining market leadership or showing significant potential, and a robust innovative drug pipeline, contributing to steady performance growth in the first half of the year - The company possesses a leading domestic "from porcine organ extraction source to terminal preparation" full industry chain technology, making it a top enterprise in natural biochemical raw materials and preparations extracted from porcine organs[42] - The company collaborates with Muyuan Foods Co., Ltd. to establish the Henan Qianmu Biopharmaceutical project, jointly building a global-scale and traceable biopharmaceutical base for comprehensive utilization of porcine by-products[42] - Kallikrein preparation (Yikai) was again included in the "China Diabetes Prevention and Treatment Guidelines (2024 Edition)," with its market share and sales continuously increasing[44][45] - Compound Digestive Enzyme Capsules (Yimei) enhance brand awareness and market competitiveness through hospital brand expansion and a new OTC strategic marketing model in cooperation with Bayer AG[46] - The global heparin preparation market size is projected to grow from USD 4.79 billion in 2019 to USD 6.63 billion in 2024, with a compound annual growth rate of 6.7%[48] - The company boasts the most comprehensive heparin preparation product line in China, with a leading market share for standard heparin sodium injection, and actively seizes market share for low molecular weight heparin products through centralized procurement policies[48] - The company has established a joint research institute for front-end innovative drug R&D, with several innovative drugs in Phase II clinical research or nearing Phase III clinical trials[49] 2025 First Half Performance Status | Metric | Amount (CNY 100 million) | Year-over-Year Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 8.62 | Slight increase | | Net Profit Attributable to Parent Company | 2.58 | 41.17 | Core Competitiveness Analysis The company demonstrates multi-faceted core competitiveness in the biopharmaceutical industry, including industry leadership, a rich product pipeline, a strong innovation R&D platform, advanced technical quality management systems, a high-caliber talent team, diversified marketing models, and a unique corporate culture, all supporting its sustained development and market competitive advantage - The company is a leading producer and operator of protease and polysaccharide drugs, and one of the few domestic pharmaceutical companies covering the entire heparin industry chain[53] - The company has established the "Changzhou Qianhong International Biopharmaceutical Innovative Drug Incubation Base," with four innovative drugs in Phase II clinical trials or nearing Phase III[54] - The company possesses core technologies such as modern molecular membrane ultrafiltration and molecular affinity chromatography, and has built high-grade preparation production workshops and quality inspection centers compliant with European and American GMP standards[55] - The company employs nearly 20 PhDs and over 80 Masters, with more than 89% of its employees holding college degrees or higher, forming a stable talent pipeline[56] - The company's domestic preparation sales have established a diversified business model primarily based on self-operation, complemented by dealer recruitment and channel expansion; its international market has a solid distribution network in Europe, America, Japan, and other countries[57] Main Business Analysis In the first half of 2025, the company's main business revenue slightly increased, while operating costs decreased, leading to an improved gross margin; raw material series revenue grew significantly, and preparation series revenue slightly declined but with a substantial increase in gross margin; domestic main business revenue decreased but gross margin rose, while international revenue and costs both increased, resulting in a slight decrease in gross margin; net cash flow from operating activities significantly decreased due to increased raw material purchases, and net cash flow from investing activities substantially increased due to higher investments in bank wealth management products 2025 First Half Main Financial Data Year-over-Year Changes | Metric | Current Period (CNY) | Prior Year Period (CNY) | Year-over-Year Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 861,771,495.13 | 855,595,853.50 | 0.72 | - | | Operating Cost | 376,487,293.53 | 404,710,259.39 | -6.97 | - | | Selling Expenses | 150,421,861.82 | 157,478,662.65 | -4.48 | - | | Administrative Expenses | 59,076,563.83 | 51,845,727.06 | 13.95 | - | | Financial Expenses | -2,789,064.39 | -4,753,358.33 | 41.32 | Due to exchange rate fluctuations during the reporting period | | Income Tax Expense | 43,517,864.41 | 29,011,961.94 | 50.00 | Due to increased total profit | | R&D Investment | 60,117,666.13 | 47,975,209.08 | 25.31 | - | | Net Cash Flow from Operating Activities | 145,836,181.44 | 284,194,484.83 | -48.68 | Primarily due to increased raw material purchases during the reporting period | | Net Cash Flow from Investing Activities | 180,177,899.85 | 16,543,274.78 | 989.13 | Primarily due to increased investment in bank wealth management products in the current period | | Net Cash Flow from Financing Activities | -151,437,240.79 | -327,907,500.39 | 53.82 | Due to share repurchase in the prior year period | | Net Increase in Cash and Cash Equivalents | 173,439,096.04 | -28,837,842.04 | 701.43 | - | 2025 First Half Operating Revenue Composition | Category | Amount (CNY) | Percentage of Operating Revenue (%) | Prior Year Period Amount (CNY) | Prior Year Period Percentage of Operating Revenue (%) | Year-over-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 861,771,495.13 | 100.00 | 855,595,853.50 | 100.00 | 0.72 | | By Industry | | | | | | | Biopharmaceutical | 858,914,136.09 | 99.67 | 853,524,534.28 | 99.76 | 0.63 | | Other | 2,857,359.04 | 0.33 | 2,071,319.22 | 0.24 | 37.95 | | By Product | | | | | | | Raw Material Series | 316,290,993.64 | 36.70 | 269,131,663.54 | 31.46 | 17.52 | | Preparation Series | 542,623,142.45 | 62.97 | 584,392,870.74 | 68.30 | -7.15 | | Other | 2,857,359.04 | 0.33 | 2,071,319.22 | 0.24 | 37.95 | | By Region | | | | | | | Domestic Region (Main Business Revenue) | 597,224,755.16 | 69.30 | 637,116,218.06 | 74.47 | -6.26 | | Domestic Region (Other Revenue) | 2,857,359.04 | 0.33 | 2,071,319.22 | 0.24 | 37.95 | | International Region | 261,689,380.93 | 30.37 | 216,408,316.22 | 25.29 | 20.92 | 2025 First Half Main Business Gross Margin Changes | Category | Operating Revenue Year-over-Year Change (%) | Operating Cost Year-over-Year Change (%) | Gross Margin Year-over-Year Change (%) | | :--- | :--- | :--- | :--- | | By Industry | | | | | Biopharmaceutical | 0.63 | -7.07 | 3.63 | | By Product | | | | | Raw Material Series | 17.52 | 18.98 | -0.82 | | Preparation Series | -7.15 | -27.66 | 8.54 | | By Region | | | | | Domestic Region (Main Business Revenue) | -6.26 | -28.71 | 10.05 | | International Region | 20.92 | 35.23 | -7.48 | Non-Main Business Analysis This section analyzes the contribution of the company's non-main businesses to total profit, primarily from investment income and fair value change gains/losses, which are sustainable, while non-operating income and expenses are minor and non-recurring 2025 First Half Non-Main Business Contribution to Total Profit | Item | Amount (CNY) | Percentage of Total Profit (%) | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 5,025,058.69 | 1.71 | Investment income from associate companies and wealth management products | Yes | | Fair Value Change Gain/Loss | 2,768,482.85 | 0.94 | Fair value changes of wealth management products | Yes | | Non-Operating Income | 16,303.00 | 0.01 | - | No | | Non-Operating Expenses | 240,819.26 | 0.08 | Primarily external donations and sponsorship expenses | No | Analysis of Assets and Liabilities This section analyzes the composition and significant changes in the company's assets and liabilities at period-end, noting increases in monetary funds, accounts receivable, and net assets attributable to shareholders, alongside decreases in financial assets held for trading, inventories, and contract liabilities, with no major overseas assets and disclosure of fair value changes in financial assets 2025 Semi-Annual Significant Changes in Asset Composition | Item | Ending Balance (CNY) | Percentage of Total Assets (%) | Beginning Balance (CNY) | Percentage of Total Assets (%) | Change in Proportion (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 613,384,496.05 | 21.36 | 439,945,400.01 | 15.54 | 5.82 | | Financial Assets Held for Trading | 145,425,498.46 | 5.06 | 273,827,190.11 | 9.67 | -4.61 | | Accounts Receivable | 333,642,698.99 | 11.62 | 254,387,636.49 | 8.99 | 2.63 | | Inventories | 357,928,428.05 | 12.46 | 426,812,563.07 | 15.08 | -2.62 | | Net Assets Attributable to Shareholders of Listed Company | 2,625,725,037.86 | 91.42 | 2,517,442,607.50 | 89.01 | 2.41 | | Contract Liabilities | 2,849,477.51 | 0.10 | 9,677,118.52 | 0.34 | -0.24 | 2025 Semi-Annual Fair Value Changes of Financial Assets Measured at Fair Value | Item | Beginning Balance (CNY) | Fair Value Change Gain/Loss for the Period (CNY) | Amount Purchased in Current Period (CNY) | Amount Sold in Current Period (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 273,827,190.11 | 2,768,482.85 | 679,853,000.00 | 811,023,174.50 | 145,425,498.46 | Investment Status Analysis During the reporting period, the company did not undertake any significant equity or non-equity investments, nor did it engage in securities or derivative investments, and there was no use of raised funds Analysis of Major Holding and Associate Companies This section details the basic information and financial data of the company's major holding and associate subsidiaries, including their main businesses, registered capital, total assets, net assets, operating revenue, operating profit, and net profit, reflecting the company's strategic布局 across the industry value chain Major Holding and Associate Company Financial Data (2025 Semi-Annual) | Company Name | Company Type | Main Business | Registered Capital | Total Assets (CNY) | Net Assets (CNY) | Operating Revenue (CNY) | Operating Profit (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Qianhong Biochemical Pharmaceutical (Hubei) Co., Ltd. | Subsidiary | Production, acquisition, and sale of pig small intestines, casings; acquisition and manufacture of crude heparin sodium from pig intestinal mucosa, pig pancreatic enzyme powder, and other biochemical pharmaceutical raw materials | CNY 50 million | 87,510,797.59 | 44,430,941.88 | 10,718,628.36 | 1,791,058.86 | 1,745,482.36 | | Jiangsu Zhonghong Bioengineering Innovative Drug Research Institute Co., Ltd. | Subsidiary | Research and development, technology transfer, consulting, and services for biopharmaceutical products and intermediates, reagents, in vitro diagnostic reagents, nutritional health products, regenerative medicine materials and products; R&D and sales of software in biopharmaceutical, personalized medicine, and clinical diagnostic fields; wholesale and import/export of biopharmaceutical intermediates and biochemical products; product display, after-sales service, and related consulting and technical guidance | USD 9.8 million | 218,040,528.17 | -18,423,702.68 | - | -17,318,653.18 | -17,135,825.80 | | Changzhou Innosenkang Biomedical Technology Co., Ltd. | Subsidiary | R&D, technical services, technical consulting, and technology transfer in biomedicine | CNY 5.7647 million | 3,351,677.45 | 758,369.18 | 718,350.00 | -839.65 | -839.65 | | Henan Qianmu Biopharmaceutical Co., Ltd. | Subsidiary | Pharmaceutical production, contract pharmaceutical manufacturing; animal casing processing; food production; food sales; primary agricultural product acquisition; agricultural and sideline product sales; agricultural product sales, processing, transportation, storage, and related services; investment activities with own funds; technical services; technology development, consulting, exchange, transfer, and promotion | CNY 100 million | 54,325,126.22 | 11,994,607.43 | 25,511,212.73 | -1,757,549.59 | -1,757,515.53 | | Changzhou Qianhong Great Health Technology Co., Ltd. | Subsidiary | Health food production; food production; grain processing food production; infant formula food production; special medical purpose formula food production; food sales; food internet sales; cosmetic production | CNY 5 million | 11,321,061.99 | 9,815,911.99 | 688,284.70 | -62,749.59 | -62,749.59 | | Changzhou Qianhong Biotechnology Co., Ltd. | Subsidiary | Pharmaceutical production, contract pharmaceutical manufacturing; animal casing processing; food production; food sales; primary agricultural product acquisition | CNY 21 million | 25,511,212.73 | 25,511,212.73 | 12,052.38 | -839.65 | -839.65 | Company Risks and Countermeasures The company faces risks including drug centralized procurement price reductions, weak overseas demand impacting heparin business, high and long R&D investment cycles, tightening environmental policies, product quality risks, and increasing operating costs; countermeasures involve strengthening management, improving product quality, innovating marketing, implementing risk control, promoting R&D commercialization, talent development, and enhancing corporate governance - Key risks include product sales price reductions due to drug centralized procurement policies, impact of declining overseas market demand on heparin business, high and long R&D investment cycles for new drugs, tightening environmental policies, product quality risks, and increasing operating costs[75][76] - Countermeasures include implementing operational guidelines, raising product process quality standards, innovating marketing models, strictly enforcing risk control measures, promoting the commercialization of new drug R&D achievements, attracting and cultivating talent, strengthening corporate culture, and enhancing corporate governance capabilities[77] Corporate Governance, Environment, and Society This section covers changes in the company's governance structure, profit distribution plans, employee incentive programs, environmental disclosures, and social responsibility initiatives Changes in Company Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the company's directors, supervisors, and senior management, with specific details available in the 2024 annual report Profit Distribution and Capital Reserve Conversion to Share Capital in This Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, the company had no equity incentive plans in effect; the 2022 core employee stock ownership plan was fully sold and terminated on June 25, 2025, with 22 million shares transferred to Mr. Wang Ke, Director and General Manager, and the remaining 8 million shares sold via centralized bidding, increasing Mr. Wang Ke and his concerted party Mr. Wang Yaofang's combined shareholding to 26.63% - The company's 2022 core employee stock ownership plan was completed and terminated on June 25, 2025, with a total of 30 million company shares sold[83][86] - Mr. Wang Ke, Director and General Manager, acquired 22 million shares through block trading, representing 1.72% of the company's total share capital[85][86] - Following this increase, Mr. Wang Ke and his concerted party, Mr. Wang Yaofang, the company's actual controller, collectively hold 340,811,600 shares, accounting for 26.63% of the company's total share capital[85] Environmental Information Disclosure The company and its major subsidiaries are included in the list of enterprises required to disclose environmental information, and Changzhou Qianhong Bio-pharma Co., Ltd. has disclosed relevant environmental information on the Jiangsu Provincial Enterprise Environmental Information Disclosure System - The company is included in the list of enterprises required to disclose environmental information and has disclosed relevant information on the Jiangsu Provincial Enterprise Environmental Information Disclosure System[88] Social Responsibility The company is committed to fulfilling its social responsibilities by safeguarding shareholder and creditor rights, prioritizing employee development and welfare, fostering harmonious labor relations, establishing strategic partnerships with suppliers and customers to ensure product quality, actively participating in environmental protection and social welfare activities, and consistently publishing ESG reports since 2024 to promote sustainable development - The company effectively safeguards the rights and interests of all shareholders and creditors by improving governance structure, information disclosure, and cash dividends[89] - The company values talent development, complies with labor laws, pays social insurance for employees, and has received honors such as the "National May 1st Labor Medal"[90] - The company cooperates with suppliers and customers based on principles of "voluntariness, equality, and mutual benefit," emphasizes product quality control, and has established a recall system for problematic drugs[91][92] - The company places high importance on environmental protection, has established an ISO14001 environmental certification management system, and applies numerous energy-saving technologies in new factory areas to achieve zero nitrogen and phosphorus emissions[93] - The company actively participates in social welfare and charitable causes, including donating cash and medicines to the Changzhou Red Cross Society, and has pledged to donate CNY 1 million annually to the Changzhou Charity Federation[94] - Since 2024, the company has consistently disclosed its Environmental, Social, and Governance (ESG) report annually, promoting and improving its ESG system[94] Significant Matters This section addresses key events and commitments, including the fulfillment of promises by actual controllers and related parties, absence of unauthorized fund occupation or illegal guarantees, and details on litigation, major contracts, and other significant developments Commitments Fulfilled During the Reporting Period and Overdue Unfulfilled Commitments by Actual Controllers, Shareholders, Related Parties, Acquirers, and the Company During the reporting period, the company's actual controller, Mr. Wang Yaofang, and his concerted party, Mr. Wang Ke, strictly fulfilled their commitments regarding the truthfulness, accuracy, and completeness of the detailed equity change report and maintaining the listed company's independence; additionally, commitments made during the initial public offering concerning horizontal competition, related party transactions, and fund occupation are being strictly fulfilled, with no violations - Information disclosure obligors Mr. Wang Ke and his concerted party Mr. Wang Yaofang have strictly fulfilled their commitments regarding the truthfulness, accuracy, and completeness of the detailed equity change report and maintaining the listed company's independence[96] - Commitments made during the initial public offering regarding horizontal competition, related party transactions, and fund occupation are being strictly fulfilled, with no violations of these commitments[96] Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties of the listed company Illegal External Guarantees During the reporting period, the company had no illegal external guarantees Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited Litigation Matters The company reached a settlement with Jianyuan Trust Co., Ltd. (formerly Anxin Trust) regarding the Chuangying No. 51 Trust Plan wealth management product dispute, with Jianyuan Trust having paid the settlement amount and the company having withdrawn its lawsuit; as of the report disclosure date, all trust wealth management product cases between the company and Jianyuan Trust have been concluded - The company reached a settlement with Jianyuan Trust Co., Ltd. regarding the Chuangying No. 51 Trust Plan wealth management product dispute and signed an agreement[101] - Jianyuan Trust has paid the company a settlement amount of CNY 56,994,275.53, and the company has submitted a withdrawal application to the Shanghai Financial Court, which was approved[101] - As of the disclosure date of this report, all trust wealth management product cases between the company and Jianyuan Trust have been concluded[101][102] Major Related Party Transactions During the reporting period, the company had no related party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, related party creditor-debtor relationships, or dealings with affiliated financial companies Major Contracts and Their Performance During the reporting period, the company had no托管, contracting, leasing, or significant guarantee matters; the company engaged in entrusted wealth management, with some trust wealth management products having overdue unrecovered principal and accrued impairment provisions, while bank wealth management products had a large outstanding balance with no overdue amounts 2025 Semi-Annual Entrusted Wealth Management | Specific Type | Source of Entrusted Funds | Amount of Entrusted Wealth Management (CNY 10,000) | Unmatured Balance (CNY 10,000) | Overdue Unrecovered Amount (CNY 10,000) | Accrued Impairment for Overdue Unrecovered Wealth Management (CNY 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Trust Wealth Management Products | Own Funds | 34,000 | 0 | 19,561.08 | 19,561.08 | | Bank Wealth Management Products | Own Funds | 52,691.69 | 52,691.69 | 0 | 0 | | Total | - | 86,691.69 | 52,691.69 | 19,561.08 | 19,561.08 | - The Anxin Chuangying No. 51 specific asset income rights collective trust plan purchased by the company in 2018 still had CNY 125,725,099 in principal and CNY 7,869,369.87 in interest unrecovered as of June 30, 2025[117] - The Anxin Ruiying No. 64 working capital loan collective fund trust plan purchased by the company in 2018 still had CNY 69,885,735.27 in principal and CNY 15,167,777.77 in interest unrecovered as of June 30, 2025[117] Explanation of Other Significant Matters During the reporting period, Mr. Wang Ke, a concerted party of the actual controller and the company's Director and General Manager, increased his shareholding by 22 million shares, primarily through acquiring shares from the employee stock ownership plan, raising his and his concerted parties' combined shareholding to 26.63%; concurrently, the 2022 core employee stock ownership plan was fully sold and terminated; furthermore, phase IIa clinical trial results for the original Class I targeted anti-tumor new drug QHRD107 capsules were presented at the European Hematology Association (EHA) annual meeting, demonstrating good efficacy and tolerability; additionally, Henan Qianmu Biopharmaceutical Co., Ltd., jointly invested by the company and Muyuan Foods Co., Ltd., has successfully commenced production, further enhancing the heparin sodium industry chain - Mr. Wang Ke, Director and General Manager, increased his shareholding by 22,000,000 shares, representing 1.72% of the total share capital, primarily by acquiring shares from the 2022 core employee stock ownership plan[120] - Following this increase, Mr. Wang Ke and his concerted parties collectively hold 340,811,600 shares, accounting for 26.63% of the total share capital[120] - The company's 2022 core employee stock ownership plan, comprising 30 million shares, has been fully sold and terminated[120] - Phase IIa clinical trial results for the original Class I targeted anti-tumor new drug QHRD107 capsules were presented at the European Hematology Association (EHA) annual meeting, showing a significant extension in patients' overall survival and good tolerability[121] - Henan Qianmu Biopharmaceutical Co., Ltd., jointly invested by the company and Muyuan Foods Co., Ltd., has successfully commenced production, which will further improve the heparin sodium industry chain[122] Share Changes and Shareholder Information This section details the company's share capital movements, including changes in restricted and unrestricted shares, and provides an overview of shareholder numbers and major shareholdings Share Changes During the reporting period, the company's total share capital remained unchanged, but restricted shares increased by 16,499,400 shares, with a corresponding decrease in unrestricted shares, primarily due to share reductions by Mr. Zhao Gang and his concerted parties (shareholders holding over 5%) and share increases by Mr. Wang Ke (a concerted party of the actual controller), leading to a recalculation of senior management's restricted share quota 2025 Semi-Annual Share Changes | Share Type | Number Before Change (shares) | Percentage Before Change (%) | Increase/Decrease During Period (shares) | Number After Change (shares) | Percentage After Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 322,060,420 | 25.16 | 16,499,400 | 338,559,820 | 26.45 | | Of which: Domestic Natural Person Holdings | 322,060,420 | 25.16 | 16,499,400 | 338,559,820 | 26.45 | | II. Unrestricted Shares | 957,739,580 | 74.84 | -16,499,400 | 941,240,180 | 73.55 | | Of which: RMB Ordinary Shares | 957,739,580 | 74.84 | -16,499,400 | 941,240,180 | 73.55 | | III. Total Shares | 1,279,800,000 | 100.00 | 0 | 1,279,800,000 | 100.00 | - Share changes were primarily due to a reduction in shares held by Mr. Zhao Gang and his concerted parties (shareholders holding over 5%), and an increase in shares held by Mr. Wang Ke, a concerted party of the actual controller, which led to a recalculation of the restricted share quota for senior management[126] Changes in Restricted Shares During the reporting period, the total number of restricted shares increased, mainly because Mr. Wang Ke, Director and General Manager, increased his shareholding by 22,000,000 shares, resulting in an increase of 16,500,000 shares in his senior management restricted stock; other senior executives' restricted share numbers remained unchanged 2025 Semi-Annual Changes in Restricted Shares | Shareholder Name | Beginning Restricted Shares (shares) | Shares Increased During Period (shares) | Ending Restricted Shares (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Wang Yaofang | 191,551,500 | 0 | 191,551,500 | Senior Management Restricted Stock | | Wang Ke | 47,557,200 | 16,500,000 | 64,057,200 | Due to increase of 22,000,000 shares in company stock during the reporting period | | Zhao Gang | 51,975,750 | 0 | 51,975,750 | Senior Management Restricted Stock | | Liu Jun | 18,044,733 | 0 | 18,044,733 | Senior Management Restricted Stock | | Zhou Xiang | 168,750 | 0 | 168,750 | Senior Management Restricted Stock | | Jiang Chizhou | 4,560,750 | 0 | 4,560,750 | Senior Management Restricted Stock | | Ye Hongping | 2,694,000 | 0 | 2,694,000 | Senior Management Restricted Stock | | Zou Shaobo | 4,793,887 | 0 | 4,793,887 | Senior Management Restricted Stock | | Xiao Aiqun | 150,000 | 0 | 150,000 | Senior Management Restricted Stock | | Mei Chunwei | 140,625 | 0 | 140,625 | Senior Management Restricted Stock | | Wei Lijun | 140,625 | 0 | 140,625 | Senior Management Restricted Stock | | Yao Yi | 112,500 | 0 | 112,500 | Senior Management Restricted Stock | | Huang Jie | 600 | 0 | 0 | Senior Management Restricted Stock | | Wang Guming | 75,000 | 0 | 75,000 | Senior Management Restricted Stock | | Hua Junwei | 94,500 | 0 | 94,500 | Senior Management Restricted Stock | | Total | 322,060,420 | 16,500,000 | 338,559,820 | - | Company Shareholder Numbers and Shareholding As of the end of the reporting period, the company had 72,767 ordinary shareholders; this section details the shareholding of shareholders holding over 5% or the top 10 shareholders, including their shareholding percentage, quantity, and changes, with the actual controller Mr. Wang Yaofang and his concerted party Mr. Wang Ke collectively holding 26.63% - The total number of ordinary shareholders at the end of the reporting period was 72,767[130] 2025 Semi-Annual Shareholding of Shareholders Holding Over 5% or Top 10 Shareholders | Shareholder Name | Shareholder Type | Shareholding Percentage (%) | Shares Held at End of Reporting Period (shares) | Change During Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Wang Yaofang | Domestic Natural Person | 19.96 | 255,402,000 | 0 | 191,551,500 | 63,850,500 | | Wang Ke | Domestic Natural Person | 6.67 | 85,409,600 | 22,000,000 | 64,057,200 | 21,352,400 | | Zhao Gang | Domestic Natural Person | 4.60 | 58,913,021 | -10,387,979 | 51,975,750 | 6,937,271 | | Jiang Jianping | Domestic Natural Person | 3.09 | 39,567,000 | -3,000,000 | 0 | 39,567,000 | | Qiu Shixun | Domestic Natural Person | 3.04 | 38,880,000 | 4,292,000 | 0 | 38,880,000 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 2.28 | 29,165,053 | -12,733,130 | 0 | 29,165,053 | | Liu Jun | Domestic Natural Person | 1.88 | 24,059,644 | 0 | 18,044,733 | 6,014,911 | | Ping An Securities - Zhou Guanxin - Ping An Securities Xinchuang No. 50 Single Asset Management Plan | Other | 1.60 | 20,476,900 | 20,476,900 | 0 | 20,476,900 | | Zhao Renyi | Domestic Natural Person | 1.17 | 15,000,000 | 0 | 0 | 15,000,000 | | China Construction Bank Fund - Zhao Renyi - China Construction Bank Xinxing No. 1 Single Asset Management Plan | Other | 1.09 | 14,000,000 | 0 | 0 | 14,000,000 | - Wang Yaofang and Wang Ke are father and son; Zhao Gang, Zhao Renyi, and China Construction Bank Fund - Zhao Renyi - China Construction Bank Xinxing No. 1 Single Asset Management Plan are concerted parties[131] Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, the shareholdings of the company's directors, supervisors, and senior management changed, with Mr. Wang Ke, Director and General Manager, increasing his holdings by 22,000,000 shares, and Mr. Zhao Gang, Vice Chairman, decreasing his holdings by 10,387,979 shares; other directors, supervisors, and senior management maintained unchanged shareholdings 2025 Semi-Annual Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Beginning Shareholding (shares) | Shares Increased During Period (shares) | Shares Decreased During Period (shares) | Ending Shareholding (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Wang Yaofang | Chairman | 255,402,000 | 0 | 0 | 255,402,000 | | Wang Ke | Director, General Manager | 63,409,600 | 22,000,000 | 0 | 85,409,600 | | Zhao Gang | Vice Chairman | 69,301,000 | 0 | 10,387,979 | 58,913,021 | | Liu Jun | Chairman of Supervisory Board | 24,059,644 | 0 | 0 | 24,059,644 | | Zhou Xiang | Director, Deputy General Manager | 225,000 | 0 | 0 | 225,000 | | Jiang Chizhou | Director, Deputy General Manager | 6,081,000 | 0 | 0 | 6,081,000 | | Hai Tao | Director, Deputy General Manager | 0 | 0 | 0 | 0 | | Ning Ao | Independent Director | 0 | 0 | 0 | 0 | | Ren Shengxiang | Independent Director | 0 | 0 | 0 | 0 | | Gao Yuyu | Independent Director | 0 | 0 | 0 | 0 | | Ye Hongping | Director | 3,592,000 | 0 | 0 | 3,592,000 | | Zou Shaobo | Director | 6,391,849 | 0 | 0 | 6,391,849 | | Xiao Aiqun | Audit Director | 200,000 | 0 | 0 | 200,000 | | Mei Chunwei | Director | 187,500 | 0 | 0 | 187,500 | | Wei Lijun | Director | 187,500 | 0 | 0 | 187,500 | | Yao Yi | Board Secretary | 150,000 | 0 | 0 | 150,000 | | Huang Jie | Director | 800 | 0 | 0 | 800 | | Wang Guming | Director | 100,000 | 0 | 0 | 100,000 | | Hua Junwei | Supervisor | 126,000 | 0 | 0 | 126,000 | | Zhang Xiaopo | Employee Supervisor | 0 | 0 | 0 | 0 | | Total | - | 429,413,893 | 22,000,000 | 10,387,979 | 441,025,914 | Changes in Controlling Shareholder or Actual Controller During the reporting period, there were no changes in the company's controlling shareholder or actual controller Bond-Related Information This section addresses any bond-related matters concerning the company Bond-Related Information During the reporting period, the company had no bond-related matters Financial Report This section presents the company's financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies, tax items, and specific financial statement items Audit Report The company's semi-annual financial report was not audited Financial Statements This section provides the company's 2025 semi-annual consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, comprehensively presenting the company's financial position, operating results, and cash flow situation Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were CNY 2,872,071,444.00, a 1.47% increase from the beginning of the period, with total current assets of CNY 1,805,456,695.20, total non-current assets of CNY 1,066,614,748.80, total liabilities of CNY 255,686,717.79, and total owners' equity attributable to the parent company of CNY 2,625,725,037.86 June 30, 2025 Consolidated Balance Sheet Key Data | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Total Assets | 2,872,071,444.00 | 2,830,441,261.34 | | Total Current Assets | 1,805,456,695.20 | 1,693,701,086.50 | | Total Non-Current Assets | 1,066,614,748.80 | 1,136,740,174.84 | | Total Liabilities | 255,686,717.79 | 313,870,622.96 | | Total Owners' Equity Attributable to Parent Company | 2,625,725,037.86 | 2,517,442,607.50 | Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were CNY 2,894,393,201.71, a 2.28% increase from the beginning of the period, with total current assets of CNY 1,817,839,256.77, total non-current assets of CNY 1,076,553,944.94, total liabilities of CNY 174,729,388.98, and total owners' equity of CNY 2,719,663,812.73 June 30, 2025 Parent Company Balance Sheet Key Data | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Total Assets | 2,894,393,201.71 | 2,829,898,604.53 | | Total Current Assets | 1,817,839,256.77 | 1,659,439,456.58 | | Total Non-Current Assets | 1,076,553,944.94 | 1,170,459,147.95 | | Total Liabilities | 174,729,388.98 | 226,514,240.89 | | Total Owners' Equity | 2,719,663,812.73 | 2,603,384,363.64 | Consolidated Income Statement In the first half of 2025, the company achieved total operating revenue of CNY 861,771,495.13, a 0.72% year-over-year increase, with net profit attributable to parent company shareholders of CNY 258,050,517.71, a 41.17% year-over-year increase, and basic earnings per share of CNY 0.2065/share 2025 Semi-Annual Consolidated Income Statement Key Data | Item | 2025 Semi-Annual (CNY) | 2024 Semi-Annual (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 861,771,495.13 | 855,595,853.50 | | Operating Profit | 293,324,555.85 | 204,551,607.29 | | Total Profit | 293,100,039.59 | 205,439,277.97 | | Net Profit | 249,582,175.18 | 176,427,316.03 | | Net Profit Attributable to Parent Company Shareholders | 258,050,517.71 | 182,792,344.63 | | Total Comprehensive Income | 249,790,087.83 | 175,685,591.07 | | Basic Earnings Per Share (CNY/share) | 0.2065 | 0.1457 | | Diluted Earnings Per Share (CNY/share) | 0.2065 | 0.1457 | Parent Company Income Statement In the first half of 2025, the parent company achieved operating revenue of CNY 861,196,630.96 and a net profit of CNY 266,255,449.09, representing a 41.57% increase compared to the same period last year 2025 Semi-Annual Parent Company Income Statement Key Data | Item | 2025 Semi-Annual (CNY) | 2024 Semi-Annual (CNY) | | :--- | :--- | :--- | | Operating Revenue | 861,196,630.96 | 854,964,497.64 | | Operating Profit | 309,368,392.54 | 216,015,342.72 | | Total Profit | 309,147,712.90 | 216,959,318.54 | | Net Profit | 266,255,449.09 | 188,075,915.42 | | Total Comprehensive Income | 266,255,449.09 | 188,075,915.42 | Consolidated Cash Flow Statement In the first half of 2025, the company's net cash flow from operating activities was CNY 145,836,181.44, a 48.68% year-over-year decrease, primarily due to increased raw material purchases; net cash flow from investing activities was CNY 180,177,899.85, a substantial 989.13% year-over-year increase, mainly due to increased investments in bank wealth management products; net cash flow from financing activities was -CNY 151,437,240.79, with a net increase in cash and cash equivalents of CNY 173,439,096.04 2025 Semi-Annual Consolidated Cash Flow Statement Key Data | Item | 2025 Semi-Annual (CNY) | 2024 Semi-Annual (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 145,836,181.44 | 284,194,484.83 | | Net Cash Flow from Investing Activities | 180,177,899.85 | 16,543,274.78 | | Net Cash Flow from Financing Activities | -151,437,240.79 | -327,907,500.39 | | Net Increase in Cash and Cash Equivalents | 173,439,096.04 | -28,837,842.04 | | Ending Balance of Cash and Cash Equivalents | 613,384,496.05 | 546,180,633.46 | Parent Company Cash Flow Statement In the first half of 2025, the parent company's net cash flow from operating activities was CNY 121,383,351.46, a 50.48% year-over-year decrease; net cash flow from investing activities was CNY 232,730,503.77, a substantial 541.75% year-over-year increase; net cash flow from financing activities was -CNY 149,976,000.00, with a net increase in cash and cash equivalents of CNY 202,993,827.33 2025 Semi-Annual Parent Company Cash Flow Statement Key Data | Item | 2025 Semi-Annual (CNY) | 2024 Semi-Annual (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 121,383,351.46 | 245,133,163.85 | | Net Cash Flow from Investing Activities | 232,730,503.77 | 36,265,783.79 | | Net Cash Flow from Financing Activities | -149,976,000.00 | -327,003,625.57 | | Net Increase in Cash and Cash Equivalents | 202,993,827.33 | -47,270,220.05 | | Ending Balance of Cash and Cash Equivalents | 575,757,818.70 | 459,025,485.19 | Consolidated Statement of Changes in Owners' Equity This statement details the changes in the company's consolidated owners' equity for the first half of 2025, including various increases and decreases in equity attributable to the parent company and minority interests, such as total comprehensive income and profit distribution, reflecting the structural changes in the company's owners' equity Parent Company Statement of Changes in Owners' Equity This statement details the changes in the parent company's owners' equity for the first half of 2025, including increases and decreases in items such as share capital, capital reserves, treasury stock, surplus reserves, and undistributed profits, reflecting the structural changes in the parent company's owners' equity Company Basic Information Changzhou Qianhong Bio-pharma Co., Ltd., established on March 15, 2008, with a registered capital of CNY 1,279.80 million, primarily engages in pharmaceutical production, wholesale, retail, and import/export, with a sound organizational structure, and its financial report was approved by the board of directors on August 21, 2025 - The company's registered capital is CNY 1,279.80 million[170] - The company's main business scope includes pharmaceutical production, contract manufacturing, wholesale, retail, import/export, as well as technology import/export and agency services[170] - Key products include heparin sodium raw materials and kallikrein preparations, with no changes in main business during the reporting period[170] Basis of Financial Statement Preparation These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance, their application guidelines, interpretations, and other relevant regulations, as well as the China Securities Regulatory Commission's "Information Disclosure Rules for Companies Issuing Securities No. 15—General Provisions for Financial Reports" (Revised 2023), presented on a going concern basis, using the accrual basis of accounting and historical cost measurement, with appropriate impairment provisions - These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance, their application guidelines, interpretations, and other relevant regulations[171] - These financial statements are presented on a going concern basis, with accounting based on the accrual method, and, except for certain financial instruments, are measured at historical cost[171] - The company has comprehensively evaluated currently available information and determined that there are no factors significantly affecting its ability to continue as a going concern within 12 months from the end of the reporting period[172] Significant Accounting Policies and Accounting Estimates This section details the significant accounting policies and estimates followed by the company in preparing its financial statements, covering key areas such as business combinations, consolidated financial statement preparation, financial instrument classification and measurement, inventory valuation, fixed asset depreciation, intangible asset amortization, R&D expenditure capitalization, revenue recognition, government grants, and deferred income tax, ensuring the truthfulness and reliability of financial information - The company classifies financial assets into those measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss, based on the business model for managing financial assets and the contractual cash flow characteristics[187] - For financial assets measured at amortized cost, debt instrument investments measured at fair value through other comprehensive income, etc., the company recognizes loss provisions based on expected credit losses[188] - The company's inventories are categorized into raw materials, packaging materials, low-value consumables, work-in-progress, and finished goods; inventory issuance is accounted for using the weighted average method, and at period-end, inventories are measured at the lower of cost and net realizable value[200][201][203] - Fixed assets are depreciated using the straight-line method, with depreciation periods of 20 years for buildings, 10 years for machinery and equipment, and 5 years for transportation equipment, electronic equipment, and other equipment[220] - R&D expenditures are distinguished between research phase expenditures and development phase expenditures; research phase expenditures are recognized as current period expenses, while development phase expenditures are capitalized when specific conditions are met[229][230] - The company recognizes revenue when it satisfies a performance obligation in the contract, meaning when the customer obtains control of the related goods or services, and recognizes revenue based on the progress or point in time of performance[240] Taxes The company's main taxes include VAT, urban maintenance and construction tax, education surcharge, local education surcharge, and corporate income tax; the company and some subsidiaries enjoy multiple tax incentives, such as VAT "exemption, offset, and refund" for self-operated export goods, a 15% corporate income tax rate for high-tech enterprises, exemption or halving of corporate income tax on technology transfer income, R&D expense super deduction, and corporate income tax benefits for small and micro-profit enterprises Main Tax Types and Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Sales of goods and taxable services calculated according to tax laws | 13%, 3%, 0% | | Urban Maintenance and Construction Tax | Amount of turnover tax payable | 7% | | Education Surcharge | Amount of turnover tax payable | 3% | | Local Education Surcharge | Amount of turnover tax payable | 2% | Corporate Income Tax Rate Disclosure by Taxpayer | Taxpayer Name | Income Tax Rate | | :--- | :--- | | Parent Company | 15% | | Jiangsu Zhonghong Bioengineering Innovative Drug Research Institute Co., Ltd. | 15% | | Qianhong Biochemical Pharmaceutical (Hubei) Co., Ltd. | 15% | | Jiangsu Jinghong Biomedical Technology Co., Ltd. | 25% | | Changzhou Innosenkang Biomedical Technology Co., Ltd. | 15% | | Qianhong (Hong Kong) Technology Development Co., Ltd. | 8.25%, 16.5% | | Changzhou Qianhong Great Health Technology Co., Ltd. | 25% | | Changzhou Qianhong Biotechnology Co., Ltd. | 25% | | Henan Qianmu Biopharmaceutical Co., Ltd. | 25% | - The company's self-operated export goods are subject to a VAT "exemption, offset, and refund" policy, with a refund rate of 13%[256] - The company and some subsidiaries are high-tech enterprises, legally enjoying a corporate income tax reduction to 15%[256] - Subsidiaries Jiangsu Zhonghong Bioengineering Innovative Drug Research Institute Co., Ltd. and Changzhou Innosenkang Biomedical Technology Co., Ltd. are exempt from corporate income tax on technology transfer income up to CNY 5 million, with the excess portion subject to a 50% reduction[257] - R&D expenses that do not form intangible assets and are recognized as current period expenses can be super-deducted at 100% before tax; if they form intangible assets, they can be amortized at 200% of cost before tax[257] - Subsidiaries meeting the criteria for small and micro-profit enterprises calculate their taxable income at 25% and pay corporate income tax at a 20% rate[258][259] Notes to Consolidated Financial Statements This section provides detailed notes for each item in the company's consolidated financial statements, including monetary funds, financial assets held for trading, notes receivable, accounts receivable, other receivables, inventories, construction in progress, intangible assets, goodwill, deferred income tax assets/liabilities, short-term borrowings, accounts payable, employee compensation payable, taxes payable, other current liabilities, deferred income, operating revenue and costs, various expenses, other income, investment income, credit impairment losses, and discloses the ending balances, beginning balances, and current period changes for each asset and liability item June 30, 2025 Monetary Funds Composition | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Cash on Hand | 3,621.53 | 5,621.53 | | Bank Deposits | 613,380,874.44 | 439,939,307.37 | | Other Monetary Funds | 0.08 | 471.11 | | Total | 613,384,496.05 | 439,945,400.01 | June 30, 2025 Financial Assets Held for Trading | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Financial assets measured at fair value with changes recognized in current profit or loss | 145,425,498.46 | 273,827,190.11 | | Total | 145,425,498.46 | 273,827,190.11 | June 30, 2025 Accounts Receivable Aging Composition | Aging | Ending Book Balance (CNY) | Beginning Book Balance (CNY) | | :--- | :--- | :--- | | Within 1 year (inclusive) | 349,235,210.53 | 265,284,245.07 | | 1 to 2 years | 4,806,638.57 | 4,420,450.00 | | 2 to 3 years | 2,146,696.06 | 2,669,696.06 | | Total | 356,188,545.16 | 272,374,391.13 | June 30, 2025 Inventory Classification | Item | Ending Book Value (CNY) | Beginning Book Value (CNY) | | :--- | :--- | :--- | | Raw Materials | 176,102,126.50 | 148,047,221.94 | | Work-in-Progress | 71,074,345.31 | 107,428,626.09 | | Finished Goods | 96,893,693.73 | 160,131,883.96 | | Packaging Materials | 13,858,26