浙江医药(600216) - 2025 Q2 - 季度财报

Important Notice Statement by the Board of Directors and Senior Management The company's Board of Directors, directors, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content, assuming legal responsibility - The company's Board of Directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content, assuming legal responsibility[3] - All company directors attended the board meeting[4] - Company head Li Nanxing, chief accountant Li Qirong, and head of accounting department Guo Guangshan declare that the financial report is true, accurate, and complete[5] Profit Distribution Plan or Capital Reserve to Share Capital Increase Plan No profit distribution plan or capital reserve to share capital increase plan was approved by the Board of Directors for this reporting period - There is no profit distribution plan or capital reserve to share capital increase plan for this reporting period[6] Risk Statement for Forward-Looking Statements Forward-looking statements in this report, including future plans and development strategies, do not constitute a substantive commitment to investors, who are advised to be aware of investment risks - Forward-looking statements in this report do not constitute a substantive commitment to investors, who should be aware of investment risks[6] Fund Occupation by Controlling Shareholder and Related Parties During the reporting period, there was no non-operating occupation of funds by the controlling shareholder or other related parties - There was no non-operating occupation of funds by the controlling shareholder or other related parties[7] External Guarantees During the reporting period, the company did not provide external guarantees in violation of prescribed decision-making procedures - There were no external guarantees provided in violation of prescribed decision-making procedures[7] Directors' Guarantee of Report Authenticity During the reporting period, there was no situation where more than half of the directors could not guarantee the truthfulness, accuracy, and completeness of the company's disclosed semi-annual report - There was no situation where more than half of the directors could not guarantee the truthfulness, accuracy, and completeness of the company's disclosed semi-annual report[7] Significant Risk Warning During the reporting period, the company had no particularly significant risks substantially affecting operations, and potential future risks and countermeasures were discussed in "Management Discussion and Analysis" - No particularly significant risks substantially affecting the company's production and operations existed during the reporting period[7] - The company has elaborated on potential future operating risks and countermeasures in Section III, "Management Discussion and Analysis," under "V. Other Disclosures"[7] Definitions Definitions of Common Terms This section defines common terms used in the report, including company and major subsidiary names, industry terms like innovative and generic drugs, and regulatory bodies such as FDA, TGA, and GMP, ensuring clear understanding - The report defines company names, subsidiary names, and common industry terms such as innovative drugs, generic drugs, FDA, TGA, and GMP, to ensure clear understanding of the report content[12] Company Profile and Key Financial Indicators Company Information This section discloses the company's Chinese name, abbreviation, English name and acronym, and legal representative information Company Basic Information | Indicator | Content | | :--- | :--- | | Chinese Name | Zhejiang Medicine Co., Ltd. | | Chinese Abbreviation | Zhejiang Medicine | | English Name | Zhejiang Medicine Co., Ltd. | | English Abbreviation | ZMC | | Legal Representative | Li Nanxing | Contact Persons and Information This section provides the names, contact addresses, telephone numbers, fax numbers, and email addresses of the company's Board Secretary and Securities Affairs Representative Contact Information for Board Secretary and Securities Affairs Representative | | Board Secretary | Securities Affairs Representative | | :--- | :--- | :--- | | Name | Shao Minzhi | Qiu Ke | | Contact Address | No. 168 Zhiyuan Middle Avenue, Binhai New City, Shaoxing, Zhejiang Province | No. 168 Zhiyuan Middle Avenue, Binhai New City, Shaoxing, Zhejiang Province | | Phone | 0575-85211969 | 0575-85211969 | | Fax | 0575-85211976 | 0575-85211976 | | Email | board@zmc-china.com | board@zmc-china.com | Brief Introduction to Changes in Basic Information This section introduces the company's registered address, office address, postal code, and website, noting no changes to the registered address during the reporting period - The company's registered and office address is No. 168 Zhiyuan Middle Avenue, Binhai New City, Shaoxing, Zhejiang Province, with no changes during the reporting period[16] Brief Introduction to Changes in Information Disclosure and Document Storage Locations This section discloses the company's designated information disclosure newspapers, the website address for the semi-annual report, and the report storage location - The company's designated information disclosure newspapers are "Shanghai Securities News" and "China Securities Journal," and the report is published on www.sse.com.cn[17](index=17&type=chunk) Brief Introduction to Company Shares This section provides the listing exchange, abbreviation, and code for the company's A-shares Company Share Overview | Share Type | Listing Exchange | Share Abbreviation | Share Code | | :--- | :--- | :--- | :--- | | A-share | Shanghai Stock Exchange | Zhejiang Medicine | 600216 | Company's Key Accounting Data and Financial Indicators This section summarizes the company's key accounting data and financial indicators for the current and prior reporting periods, showing year-on-year changes; total profit, net profit attributable to parent, and net operating cash flow all significantly increased Key Accounting Data (Jan-Jun) | Indicator | Current Period (Jan-Jun) | Prior Year Same Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 4,322,874,759.83 | 4,405,467,286.37 | -1.87 | | Total Profit | 758,881,420.16 | 334,589,302.43 | 126.81 | | Net Profit Attributable to Shareholders of Listed Company | 673,306,732.88 | 315,332,017.87 | 113.52 | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | 665,480,908.03 | 316,739,561.09 | 110.10 | | Net Cash Flow from Operating Activities | 798,181,205.04 | 209,388,178.57 | 281.20 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 11,214,681,567.51 | 10,648,142,085.06 | 5.32 | | Total Assets (Period-end) | 14,201,909,522.50 | 13,795,473,105.69 | 2.95 | Key Financial Indicators (Jan-Jun) | Key Financial Indicator | Current Period (Jan-Jun) | Prior Year Same Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.70 | 0.33 | 112.12 | | Diluted Earnings Per Share (Yuan/share) | 0.70 | 0.33 | 112.12 | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (Yuan/share) | 0.69 | 0.33 | 109.09 | | Weighted Average Return on Net Assets (%) | 6.13 | 3.22 | increased by 2.91 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | 6.06 | 3.24 | increased by 2.82 percentage points | Non-Recurring Gains and Losses Items and Amounts This section details non-recurring gains and losses items and their amounts for the reporting period, totaling 7.83 million yuan, primarily including non-current asset disposal gains/losses and government subsidies Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (Yuan) | | :--- | :--- | | Gains/losses on disposal of non-current assets, including the write-back of impairment provisions | 2,076,862.62 | | Government subsidies recognized in current profit or loss, excluding those closely related to normal business operations, compliant with national policies, enjoyed according to fixed standards, and having a continuous impact on company profit or loss | 10,182,378.55 | | Fair value changes and disposal gains/losses from financial assets and liabilities held by non-financial enterprises, excluding effective hedge accounting related to normal business operations | -72,703.53 | | Other non-operating income and expenses apart from the above | -1,985,760.87 | | Less: Income tax impact | 1,162,157.37 | | Minority interest impact (after tax) | 1,212,794.55 | | Total | 7,825,824.85 | Management Discussion and Analysis Explanation of the Company's Industry and Main Business Operations During the Reporting Period This section details the company's pharmaceutical manufacturing industry, main businesses in life nutrition and pharmaceuticals, procurement, production, and sales models, industry conditions, and performance drivers, highlighting its extensive presence in vitamins and pharmaceuticals amidst high industry concentration and policy changes - The company's main businesses are life nutrition products and pharmaceuticals, covering nutritional products such as synthetic Vitamin E, Vitamin A, natural Vitamin E, Coenzyme Q10, as well as anti-resistant antibiotics, anti-malarial APIs, quinolones, hypoglycemic agents, and hormone preparations[25] - Procurement emphasizes supplier evaluation and inspection control; production is demand-driven, adhering to GMP standards; life nutrition products are primarily self-exported, while pharmaceuticals use a "direct business + promotion agency" model and actively expand into international markets[25][26][27] - The vitamin industry is highly concentrated, with market demand and prices influenced by supply-demand, raw material costs, overseas market demand, downstream industry demand, and policy changes[28] - The pharmaceutical industry, a vital pillar of the national economy, relies heavily on specialized knowledge and advanced technology, facing high barriers in policy access, capital, technology, talent, and sales networks, yet offers a relatively secure development space[29] Company's Industry Position During the reporting period, the company received awards for pharmaceutical internationalization and green sustainable development in the health and beauty industry, was ranked among China's top 100 pharmaceutical industrial enterprises by main business revenue, and has several products leading in international and domestic markets, demonstrating strong core competitiveness and global market influence - The company received the "Leading Enterprise in Pharmaceutical Internationalization Award" and "Pioneer Enterprise in Green Sustainable Development of Health and Beauty Industry" titles, and was listed among the top 100 Chinese pharmaceutical industrial enterprises by main business revenue in 2024[31] - The company has achieved specialized and large-scale production in fat-soluble vitamins, vitamin-like substances, quinolone antibiotics, and anti-resistant antibiotics, with several products ranking among the top internationally and domestically[31] - Zhejiang Medicine has developed into a technologically advanced, large-scale, financially strong pharmaceutical enterprise with global market influence[32] Discussion and Analysis of Operations In the first half of 2025, the company's operating revenue slightly decreased by 1.87% year-on-year, but net profit attributable to parent company shareholders significantly increased by 113.52%, driven by continuous safety and environmental initiatives, technological advancements, product optimization, and growth in the life nutrition segment, while the pharmaceutical segment addresses challenges from centralized procurement Operating Performance H1 2025 | Indicator | Amount (100 million Yuan) | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | 43.23 | -1.87 | | Net Profit Attributable to Parent Company Shareholders | 6.73 | 113.52 | - The company prioritizes safety and environmental protection, continuously deepening its "zero-waste group" initiative and vigorously promoting energy saving, carbon reduction, and various emission reduction measures[32] - The life nutrition segment continuously advanced technological progress, optimized product series, and adjusted capacity structure, seizing market opportunities to achieve significant sales revenue growth compared to the prior year[33] - The pharmaceutical segment faces sales pressure post-centralized procurement and rising API costs, for which the company has formulated and is implementing countermeasures[34] Main Business by Industry (Jan-Jun 2025) | By Industry | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin (%) | YoY Change in Operating Revenue (%) | YoY Change in Operating Cost (%) | YoY Change in Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Life Nutrition Products | 2,034,190,234.93 | 916,420,805.96 | 54.95 | 0.58 | -25.06 | 15.41 | | Pharmaceuticals | 2,223,472,546.43 | 1,632,564,295.05 | 26.58 | -5.20 | 2.90 | -5.77 | | Other | 36,754,586.65 | 22,861,470.63 | 37.80 | 56.60 | 2.83 | 32.52 | | Total | 4,294,417,368.01 | 2,571,846,571.64 | 40.11 | -2.21 | -9.17 | 4.59 | Main Business by Region (Jan-Jun 2025) | By Region | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin (%) | YoY Change in Operating Revenue (%) | YoY Change in Operating Cost (%) | YoY Change in Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic Sales | 2,754,177,303.73 | 1,794,850,930.46 | 34.83 | -9.02 | -7.75 | -0.90 | | International Sales | 1,540,240,064.28 | 776,995,641.18 | 49.55 | 12.93 | -12.29 | 14.50 | Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness remains stable, characterized by its focus on core businesses, complete industrial chain, stable management and technical teams, comprehensive marketing network, product quality advantages in fat-soluble vitamins and antibiotics, and active promotion of "Industry 4.0" intelligent transformation - The company focuses on core businesses, has built a complete life nutrition product industrial chain, and implements an integrated API and preparation strategy to effectively mitigate risks[37] - The company possesses a stable core management team and a market-oriented technological innovation system, including a national-level enterprise technology center and a postdoctoral research workstation[37] - The company has established a comprehensive marketing network system with an advanced, efficient, and professional sales team, and has forged stable long-term strategic partnerships with renowned domestic and international enterprises[37] - In the fields of fat-soluble vitamins, anti-resistant antibiotics, and quinolone antibiotics, the company's product quality reaches international advanced levels, and it has participated in the formulation of international quality standards for relevant varieties[38] - The company is gradually transforming traditional operating models in the pharmaceutical sector, pioneering "Industry 4.0" in the industry, achieving a leap from mechanization to intelligence[38] Key Operating Performance During the Reporting Period This section analyzes the company's financial statement item changes, non-core business impact on profit, asset-liability status, and investment activities during the reporting period, revealing specific operational shifts and their causes, including significant improvement in financial expenses due to exchange gains, substantial growth in operating cash flow, and a contraction strategy for external investments - Financial expenses significantly decreased by 1214.21% year-on-year, primarily due to increased exchange gains[39] - Net cash flow from operating activities increased by 281.20% year-on-year, mainly due to increased cash received from sales and higher tax refunds[40] - Net cash flow from financing activities increased by 118.37% year-on-year, primarily due to reduced cash payments for debt repayment[40] Main Business Analysis Financial statement items show a decrease in both operating revenue and costs, with corresponding reductions in selling and R&D expenses, while financial expenses significantly improved due to exchange gains Analysis of Financial Statement Item Changes (Jan-Jun 2025) | Item | Current Period Amount (Yuan) | Prior Year Same Period Amount (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 4,322,874,759.83 | 4,405,467,286.37 | -1.87 | | Operating Cost | 2,601,595,840.00 | 2,846,185,174.17 | -8.59 | | Selling Expenses | 451,716,144.12 | 537,172,530.81 | -15.91 | | Administrative Expenses | 209,433,285.89 | 221,357,666.04 | -5.39 | | Financial Expenses | -104,372,956.34 | -7,941,855.79 | -1,214.21 | | R&D Expenses | 313,508,800.49 | 377,483,069.83 | -16.95 | | Net Cash Flow from Operating Activities | 798,181,205.04 | 209,388,178.57 | 281.20 | | Net Cash Flow from Investing Activities | -127,027,961.08 | -167,659,979.47 | 24.23 | | Net Cash Flow from Financing Activities | 8,232,518.58 | -44,803,646.59 | 118.37 | Explanation of Significant Profit Changes Due to Non-Core Businesses Non-core business profit significantly improved due to increased exchange gains in financial expenses, alongside notable growth in investment income and fair value change gains, while other income and non-operating expenses decreased Non-Core Business Profit Changes (Jan-Jun 2025) | Income Statement Item | Current Period Amount (Yuan) | Prior Year Same Period Amount (Yuan) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Financial Expenses | -104,372,956.34 | -7,941,855.79 | -1,214.21 | Primarily due to increased exchange gains | | Other Income | 27,095,821.76 | 40,367,983.26 | -32.88 | Primarily due to decreased government subsidies | | Investment Income | -3,372,533.17 | -11,609,733.51 | 70.95 | Primarily due to changes in investment income from trust wealth management, associate companies, etc. | | Gains from Changes in Fair Value | 1,276,670.78 | -11,590,057.79 | 111.02 | Due to fair value changes in stocks and funds held by the company | | Credit Impairment Losses | 5,305,840.36 | 275,244.20 | 1,827.68 | Primarily due to reduced bad debt provisions based on aging in the current period | | Non-Operating Expenses | 3,771,760.85 | 7,336,808.26 | -48.59 | Primarily due to reduced fixed asset disposals | | Income Tax Expense | 134,310,263.92 | 79,223,834.42 | 69.53 | Primarily due to increased profit in the current period | Analysis of Assets and Liabilities At the end of the reporting period, the company's monetary funds, other non-current assets, and deferred income significantly increased, while other receivables, other current assets, construction in progress, employee compensation payable, and taxes payable substantially decreased, reflecting increased sales collections, reduced project investments, and tax payments; overseas assets accounted for 6.78% of total assets Changes in Assets and Liabilities (June 30, 2025) | Item Name | Current Period-end Amount (Yuan) | Proportion of Total Assets at Period-end (%) | Prior Year-end Amount (Yuan) | Proportion of Total Assets at Prior Year-end (%) | Change from Prior Year-end (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 2,708,776,622.78 | 19.07 | 1,965,821,411.06 | 14.25 | 37.79 | Primarily due to increased sales collections in the current period | | Other Receivables | 49,475,204.22 | 0.35 | 194,790,405.14 | 1.41 | -74.60 | Primarily due to decreased export tax refunds receivable in the current period | | Other Current Assets | 34,540,706.01 | 0.24 | 78,723,872.42 | 0.57 | -56.12 | Primarily due to decreased VAT credit carryforwards | | Construction in Progress | 655,883,177.48 | 4.62 | 982,504,818.13 | 7.12 | -33.24 | Primarily due to reduced investment in construction projects | | Other Non-Current Assets | 29,973,098.60 | 0.21 | 18,755,688.24 | 0.14 | 59.81 | Primarily due to increased prepaid engineering costs | | Employee Compensation Payable | 111,747,879.34 | 0.79 | 213,868,771.41 | 1.55 | -47.75 | Due to payment of employee compensation accrued in the prior period | | Taxes Payable | 121,910,301.70 | 0.86 | 268,257,678.29 | 1.94 | -54.55 | Primarily due to payment of income tax accrued in the prior period | | Non-Current Liabilities Due Within One Year | 425,342,040.42 | 2.99 | 306,855,610.49 | 2.22 | 38.61 | Primarily due to increased long-term bank loans maturing within one year | | Other Current Liabilities | 2,074,653.41 | 0.01 | 3,346,320.31 | 0.02 | -38.00 | Primarily due to decreased deferred output VAT received in advance | | Deferred Income | 136,873,976.03 | 0.96 | 104,595,165.33 | 0.76 | 30.86 | Primarily due to increased asset-related government subsidies | | Treasury Stock | 136,553,959.00 | 0.96 | - | - | - | Primarily due to company share repurchase | | Other Comprehensive Income | 25,203,072.52 | 0.18 | -1,360,564.68 | -0.01 | 1,952.40 | Primarily due to foreign currency financial statement translation differences | - Overseas assets totaled 963.13 million yuan, accounting for 6.78% of total assets[44] Major Restricted Assets | Item | Period-end Amount (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Restricted Funds | 169,000.00 | ETC deposit | | Total | 169,000.00 | | Analysis of Investment Status In the first half of 2025, the company generally adopted a contraction strategy for external investments, prudently conducting investment activities and reducing the scale of financial investments to control risks; financial assets measured at fair value totaled 297.13 million yuan at period-end - In the first half of the year, the company generally adopted a contraction strategy for external investments, prudently conducting investment activities and reducing the scale of financial investments to effectively control overall risk[47] Financial Assets Measured at Fair Value (Period-end) | Asset Category | Beginning Balance (Yuan) | Fair Value Change Gains/Losses for Current Period (Yuan) | Purchases for Current Period (Yuan) | Sales/Redemptions for Current Period (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Stocks | 21,763,679.62 | -392,476.60 | 277,409,323.74 | 249,364,781.25 | 49,415,745.51 | | Trust Products | 1,677,951.13 | - | - | 1,677,951.13 | - | | Private Equity Funds | 49,020,861.22 | 3,337,131.18 | 20,000,000.00 | 7,672,000.00 | 64,685,992.40 | | Other | 292,900,159.75 | -1,667,983.80 | 530,670,317.06 | 638,873,452.59 | 183,029,040.42 | | Total | 365,362,651.72 | 1,276,670.78 | 828,079,640.80 | 897,588,184.97 | 297,130,778.33 | Analysis of Major Holding and Associate Companies During the reporting period, major subsidiaries like Laiyi Pharmaceutical and ZMC Europe Company were profitable, while Innovation Bio and Xinma Bio incurred losses, reflecting operational differences across business segments Major Subsidiaries and Associate Companies with Over 10% Impact on Company Net Profit (Unit: 10,000 Yuan) | Company Name | Company Type | Main Business | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Laiyi Pharmaceutical | Subsidiary | Pharmaceutical wholesale, etc. | 36,000.00 | 122,382.09 | 68,631.38 | 131,488.07 | 2,822.10 | 2,183.16 | | Laiyi Import & Export | Subsidiary | Goods import and export | 1,000.00 | 14,297.44 | 6,659.99 | 13,362.69 | 1,081.79 | 742.48 | | ZMC Europe Co. | Subsidiary | Production and sales of feed vitamin premixes | EUR745.00 | 72,528.46 | 29,302.74 | 75,689.08 | 5,904.09 | 4,667.77 | | ZMUC Co. | Subsidiary | Goods import and sales | USD400.00 | 24,655.27 | 6,038.92 | 20,297.63 | 994.35 | 994.35 | | Innovation Bio | Subsidiary | Production and sales of pharmaceuticals, health foods | 95,438.00 | 67,843.77 | 44,371.36 | 9,282.97 | -6,659.16 | -6,673.06 | | Changhai Pharmaceutical | Subsidiary | Production and sales of pharmaceuticals, food additives | 63,330.00 | 144,777.78 | -48,947.91 | 32,656.00 | 1,525.14 | 1,519.10 | | Xinma Bio | Subsidiary | Pharmaceutical production, import and export | 2,800.82 | 21,001.94 | 10,358.79 | 0.00 | -5,052.51 | -5,048.46 | Other Disclosures This section discloses potential risks including policy and regulatory changes, market competition, rising costs, R&D failures, new business investment returns, and environmental and safety concerns, detailing the company's "Quality Improvement, Efficiency Enhancement, and Return Focus" action plan and progress, which includes focusing on core business, increasing investor returns, strengthening innovation, improving information disclosure, adhering to standardized operations, and leveraging share repurchases for growth - The company faces risks from policy and regulatory changes, intensified market competition, rising production factor costs, new drug R&D failures, new business investment return risks, and environmental and safety operational risks[51][52] - The company formulated an action plan for "Quality Improvement, Efficiency Enhancement, and Return Focus," concentrating on strengthening core business, increasing investor returns, enhancing innovation leadership, improving information disclosure quality, adhering to standardized operations, and leveraging share repurchases for growth[53][54][55][57][58] Potential Risks The company identified six major risks: policy and regulatory changes, intensified market competition, rising production factor costs, new drug R&D failures, new business investment returns, and environmental and safety operations, proposing corresponding countermeasures to enhance its market competitiveness and risk resilience - Policy and regulatory change risk: The company will continuously monitor national policies, formulate targeted product strategies, and ensure stable growth of core product lines[51] - Intensified market competition risk: The company will deepen industrial layout optimization, strengthen the industrial chain structure, and build core competitiveness[51] - Rising production factor cost risk: The company will optimize supply chain management, seek alternative raw material suppliers, and adopt cost-effective production technologies[51] - New drug R&D failure risk: The company will strengthen R&D project budget cost management and improve the efficiency of R&D quality management[51] - New business investment return risk: The company will optimize internal processes, accelerate product R&D and registration, and strictly control costs[52] - Environmental and safety operational risk: The company will continuously invest in environmental protection technologies and equipment, establish a strict safety management system, and formulate emergency plans[52] Other Disclosures The company actively implemented its "Quality Improvement, Efficiency Enhancement, and Return Focus" action plan, with the life nutrition segment driving sales growth in the first half; it prioritized investor returns with a 30.35% cash dividend ratio for 2024; increased R&D investment to 314 million yuan, accounting for 7.25% of revenue; improved information disclosure and investor communication; optimized corporate governance by abolishing the Supervisory Board and adding an employee director; and completed a share repurchase of 13.72 million shares totaling 199.98 million yuan for future employee stock ownership plans or equity incentives - The company focused on strengthening its core business, with the life nutrition segment's sales revenue significantly increasing year-on-year, providing the main driver for the company's performance improvement[54] - The company highly values investor returns; the 2024 profit distribution plan was a cash dividend of 0.37 yuan per share (tax inclusive), with a cash dividend ratio of 30.35%[54] - The company strengthened innovation leadership, with R&D investment reaching 314 million yuan in the current reporting period, accounting for 7.25% of operating revenue[55] - The company optimized its governance structure by abolishing the Supervisory Board, whose functions are now exercised by the Board's Audit Committee, and adding an employee director[57] - The company completed a share repurchase of 13,723,200 shares, representing 1.43% of the company's total share capital, using a total of 199,982,725 yuan for subsequent employee stock ownership plans or equity incentives[58] Corporate Governance, Environment, and Society Changes in Company Directors and Senior Management During the reporting period, Mr. Cang Hongyu resigned as a director due to work relocation, and Mr. Xing Hai was elected as a new director; the company also abolished the Supervisory Board, with its functions now exercised by the Board's Audit Committee, and elected Ms. Ma Jiqi as an employee director, optimizing the corporate governance structure - Director Mr. Cang Hongyu resigned due to work relocation, and Mr. Xing Hai was elected as a director of the company's Tenth Board of Directors[62] - The company abolished the Supervisory Board, with its functions now exercised by the Board's Audit Committee, and elected Ms. Ma Jiqi as an employee director of the company's Tenth Board of Directors[63] Profit Distribution or Capital Reserve to Share Capital Increase Plan The company has no profit distribution plan or capital reserve to share capital increase plan for this semi-annual period - The company has no profit distribution plan or capital reserve to share capital increase plan for this reporting period[64] Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law The company and its five major subsidiaries are included in the list of enterprises required to disclose environmental information by law, with query indexes provided, demonstrating the company's compliance in environmental information disclosure Enterprises Included in the List of Enterprises Required to Disclose Environmental Information by Law | Quantity (units) | Enterprises included in the list of enterprises required to disclose environmental information by law | 5 | | :--- | :--- | :--- | | No. | Enterprise Name | Query Index for Environmental Information Disclosure Report | | 1 | Zhejiang Medicine Co., Ltd. Xinchang Pharmaceutical Factory | Zhejiang Provincial Department of Ecology and Environment - Enterprise Environmental Information Disclosure System | | 2 | Zhejiang Medicine Co., Ltd. Changhai Bio-Tech Branch | Zhejiang Provincial Department of Ecology and Environment - Enterprise Environmental Information Disclosure System | | 3 | Zhejiang Changhai Pharmaceutical Co., Ltd. | Zhejiang Provincial Department of Ecology and Environment - Enterprise Environmental Information Disclosure System | | 4 | Zhejiang Innovation Bio Co., Ltd. | Zhejiang Provincial Department of Ecology and Environment - Enterprise Environmental Information Disclosure System | | 5 | Zhejiang Zhongxian Bio-Tech Co., Ltd. | Zhejiang Provincial Department of Ecology and Environment - Enterprise Environmental Information Disclosure System | Specifics of Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, and Other Work In the first half of 2025, Zhejiang Medicine Co., Ltd. Xinchang Pharmaceutical Factory donated 70,000 yuan to Kengxia Village, Chengta Town, Xinchang County, to support the village in increasing collective operating income, actively fulfilling its social responsibilities - Zhejiang Medicine Co., Ltd. Xinchang Pharmaceutical Factory donated 70,000 yuan to Kengxia Village, Chengta Town, Xinchang County, to support the village in increasing collective operating income[66] Significant Matters Fulfillment of Commitments The company's actual controller and controlling shareholder strictly fulfilled all commitments made during or continuing into the reporting period, primarily concerning avoiding horizontal competition, ensuring company independence, and regulating related-party transactions Fulfillment of Commitments | Commitment Background | Commitment Type | Promisor | Commitment Content | Commitment Date | Commitment Period | Timely and Strict Fulfillment | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Commitments made in acquisition report or equity change report | Resolve horizontal competition | Actual Controller | Avoid horizontal competition | 2024-11-01 | Continuously effective during the period as actual controller | Yes | | Commitments made in acquisition report or equity change report | Maintain company independence | Actual Controller | Ensure independence of company personnel, assets, finance, organization, and business | 2024-11-01 | Continuously effective during the period as actual controller | Yes | | Commitments made in acquisition report or equity change report | Regulate and reduce related-party transactions | Actual Controller | Regulate and reduce potential related-party transactions with Zhejiang Medicine | 2024-11-01 | Continuously effective during the period as actual controller | Yes | | Commitments related to refinancing | Resolve horizontal competition | Controlling Shareholder | Avoid horizontal competition | 2011-09-20 | Long-term effective | Yes | | Commitments related to refinancing | Resolve horizontal competition | Actual Controller | Avoid horizontal competition | 2011-09-20 | Long-term effective | Yes | Significant Litigation and Arbitration Matters The company had no significant litigation or arbitration matters during this reporting period - The company had no significant litigation or arbitration matters during this reporting period[69] Share Changes and Shareholder Information Share Capital Change Information During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[73] Shareholder Information As of the end of the reporting period, the company had 65,531 common shareholders; Xinchang County Changxin Investment Development Co., Ltd. and SDIC High-Tech Investment Co., Ltd. were the top two shareholders, holding 21.65% and 15.61% respectively; the company's dedicated share repurchase account held 9,619,400 shares Total Number of Shareholders | Indicator | Number (households) | | :--- | :--- | | Total number of common shareholders at the end of the reporting period | 65,531 | | Total number of preferred shareholders with restored voting rights at the end of the reporting period | 0 | Top Ten Shareholders' Shareholdings (Excluding Shares Lent via Securities Relending) | Shareholder Name (Full Name) | Increase/Decrease During Reporting Period | Period-end Shareholding Quantity | Proportion (%) | Number of Shares with Restricted Sales Conditions | Pledged, Marked, or Frozen Status (Share Status/Quantity) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Xinchang County Changxin Investment Development Co., Ltd. | 0 | 208,192,361 | 21.65 | 0 | None/0 | Domestic Non-State-Owned Legal Person | | SDIC High-Tech Investment Co., Ltd. | 0 | 150,127,573 | 15.61 | 0 | None/0 | State-Owned Legal Person | | Hong Kong Securities Clearing Company Limited | 26,001,704 | 71,290,390 | 7.41 | 0 | None/0 | Unknown | | Xianju County Industrial Investment Development Group Co., Ltd. | 0 | 17,244,632 | 1.79 | 0 | None/0 | State-Owned Legal Person | | Chen Zhaohui | 3,008,080 | 12,700,889 | 1.32 | 0 | None/0 | Domestic Natural Person | | Zhao Liqian | 7,683,595 | 7,683,595 | 0.80 | 0 | None/0 | Domestic Natural Person | | Bank of Shanghai Co., Ltd. - Yinhua CSI Innovative Pharmaceutical Industry ETF | -1,361,500 | 6,318,381 | 0.66 | 0 | None/0 | Unknown | | China Merchants Bank Co., Ltd. - Southern CSI 1000 ETF | 650,500 | 6,219,398 | 0.65 | 0 | None/0 | Unknown | | Li Xia | 5,183,700 | 5,183,700 | 0.54 | 0 | None/0 | Domestic Natural Person | | Wang Xiuying | -1,399,620 | 4,350,380 | 0.45 | 0 | None/0 | Domestic Natural Person | - The company's dedicated share repurchase account holds 9,619,400 shares[77] Information on Directors and Senior Management During the reporting period, there were no changes in the shareholdings of the company's directors and senior management, nor were they granted any equity incentives - During the reporting period, there were no changes in the shareholdings of the company's directors and senior management, nor were they granted any equity incentives[79] Bond-Related Information Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments The company had no corporate bonds or non-financial enterprise debt financing instruments during this reporting period - The company had no corporate bonds or non-financial enterprise debt financing instruments during this reporting period[81] Convertible Corporate Bonds The company had no convertible corporate bonds during this reporting period - The company had no convertible corporate bonds during this reporting period[81] Financial Report Audit Report This semi-annual report is unaudited - This semi-annual report is unaudited[83] Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity