汉森制药(002412) - 2025 Q2 - 季度财报

Important Notes, Table of Contents, and Definitions Important Notes The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with all directors attending the review meeting, and the company plans no cash dividends, bonus shares, or capital reserve conversions - The Company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, free from false records, misleading statements, or major omissions[4] - Company's principal officer Liu Zhengqing, head of accounting work Dai Jianghong, and head of accounting department Guo Zhirong declare the financial report is true, accurate, and complete[4] - The Company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital[6] Catalogue of Documents for Reference This section lists the semi-annual report's reference documents, including signed financial reports, original announcements disclosed on designated media, and the chairman's signed report, all available at the Company's Securities Investment Department - Reference documents include the financial report text signed and sealed by the legal representative, head of accounting work, and head of accounting department[10] - Reference documents include the originals and drafts of announcements disclosed on media designated by the China Securities Regulatory Commission during the reporting period[10] - The reference documents are available at the Company's Securities Investment Department[10] Definitions This section defines common terms used in the report, covering regulatory bodies, exchanges, company entities, accounting periods, management standards, and key subsidiaries to ensure accurate interpretation - The 'reporting period' refers to the accounting period from January to June 2025[11] - 'Company', 'the Company', 'listed company', and 'Hansen Pharmaceutical' all refer to Hunan Hansen Pharmaceutical Co., Ltd[11] - 'GMP' refers to Good Manufacturing Practice for pharmaceuticals[11] Company Profile and Key Financial Indicators Company Profile Hansen Pharmaceutical (stock code: 002412) is listed on the Shenzhen Stock Exchange, with its full name Hunan Hansen Pharmaceutical Co., Ltd., and legal representative Liu Zhengqing Basic Company Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Hansen Pharmaceutical | | Stock Code | 002412 | | Stock Exchange Listed On | Shenzhen Stock Exchange | | Company's Chinese Name | 湖南汉森制药股份有限公司 | | Company's Legal Representative | 刘正清 | Contact Person and Information The Company's Board Secretary is Dai Jianghong, with contact address at No. 2688 Yincheng Avenue, Heshan District, Yiyang City, phone 0737-6351486, fax 0737-6351067, and email hnyydjh@163.com Company Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | 戴江洪 | 益阳市赫山区银城大道 2688 号 | 0737-6351486 | 0737-6351067 | hnyydjh@163.com | Other Information During the reporting period, there were no changes in the Company's contact information, information disclosure and reference locations, or other relevant data, with specific details available in the 2024 annual report - The Company's registered address, office address, website, and email address remained unchanged during the reporting period[15] - The securities exchange website and media name and URL for the Company's semi-annual report disclosure, as well as the semi-annual report's reference location, remained unchanged during the reporting period[16] Key Accounting Data and Financial Indicators In the first half of 2025, the Company's operating revenue grew by 5.91% to 509 million Yuan, but net profit attributable to shareholders decreased by 31.80% to 68.5384 million Yuan, while net cash flow from operating activities significantly increased by 155.49%, and total assets and net assets attributable to shareholders both saw slight growth Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Change from Prior Year Period | | :--- | :--- | :--- | :--- | | Operating Revenue | 508,850,630.33 | 480,445,782.48 | 5.91% | | Net Profit Attributable to Shareholders of the Listed Company | 68,538,438.13 | 100,493,998.36 | -31.80% | | Net Profit Attributable to Shareholders of the Listed Company Excluding Non-recurring Gains and Losses | 64,769,529.97 | 94,857,139.29 | -31.72% | | Net Cash Flow from Operating Activities | 110,101,758.28 | 43,093,836.05 | 155.49% | | Basic Earnings Per Share (Yuan/share) | 0.1362 | 0.1997 | -31.80% | | Diluted Earnings Per Share (Yuan/share) | 0.1362 | 0.1997 | -31.80% | | Weighted Average Return on Net Assets | 3.07% | 4.97% | -1.90% | | As of End of Current Reporting Period | As of End of Prior Year | Change from End of Prior Year | | Total Assets | 2,575,331,979.01 | 2,547,234,247.32 | 1.10% | | Net Assets Attributable to Shareholders of the Listed Company | 2,255,715,093.42 | 2,203,382,060.15 | 2.38% | Differences in Accounting Data Under Domestic and International Accounting Standards During the reporting period, the Company reported no differences in net profit and net assets between financial statements prepared under international or foreign accounting standards and those under Chinese accounting standards - During the reporting period, the Company reported no differences in net profit and net assets between financial statements disclosed under International Accounting Standards and Chinese Accounting Standards[19] - During the reporting period, the Company reported no differences in net profit and net assets between financial statements disclosed under foreign accounting standards and Chinese Accounting Standards[20] Non-recurring Gains and Losses and Amounts The Company's total non-recurring gains and losses for the reporting period amounted to 3.7689 million Yuan, primarily comprising gains/losses from disposal of non-current assets, government grants, fair value changes, and other non-operating income/expenses, net of income tax effects Non-recurring Gains and Losses and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | -448,975.19 | | Government Grants Recognized in Current Profit or Loss | 1,636,920.52 | | Gains/Losses from Changes in Fair Value of Financial Assets and Liabilities Held by Non-financial Enterprises and from Disposal of Financial Assets and Liabilities | 3,223,274.64 | | Other Non-operating Income and Expenses Apart from the Above Items | 81,562.08 | | Less: Income Tax Impact | 723,873.89 | | Total | 3,768,908.16 | - The Company has no other profit or loss items that meet the definition of non-recurring gains and losses[22] Management Discussion and Analysis Principal Business Activities During the Reporting Period The Company, a pharmaceutical manufacturer focused on R&D, production, and sales, primarily deals in traditional Chinese medicine preparations with chemical drugs as a supplement, operating in a favorable yet challenging industry environment, with its flagship product, Simotang Oral Liquid, holding a strong market position and securing bids in centralized procurement - 2025 marks the final year of the '14th Five-Year Plan', with the pharmaceutical industry showing positive development trends and national policies supporting innovation, service model reform, and quality improvement[24] - The pharmaceutical industry faces challenges such as slowing economic growth, medical insurance cost control, and rising raw material and traditional Chinese medicine costs, but policies are driving the industry towards innovation-driven and high-quality development[25] - The Company is a pharmaceutical manufacturing enterprise integrating R&D, production, and sales, primarily producing traditional Chinese medicine preparations supplemented by chemical drugs, with products covering digestive system, cardiovascular and cerebrovascular, kidney-tonifying and urination-reducing, trauma, and diagnostic medications[25] - The Company's leading product, Simotang Oral Liquid, is a Class B product in the National Medical Insurance Catalog, an exclusive product of the Company, with a history of over 1,000 years[32] - The Company's products have secured bids in centralized drug procurement in regions such as the Beijing-Tianjin-Hebei '3+N' alliance, Fujian, and Jiangsu, with chemical drugs like Iohexol Injection, Sodium Bicarbonate Tablets, and Captopril Tablets also winning bids[33] Industry Development Overview In 2025, the pharmaceutical industry shows positive development, driven by national policies focusing on innovation, service reform, and quality improvement, despite challenges like economic slowdown and rising costs, with optimized medical insurance policies and improved review systems fostering innovation-driven, high-quality transformation - Multiple departments, including the National Health Commission, have jointly issued policies focusing on innovation, service model reform, and quality improvement in the pharmaceutical industry, driving demand growth in the grassroots pharmaceutical market[24] - The pharmaceutical industry faces challenges such as slowing economic growth, medical insurance cost control, and rising raw material and traditional Chinese medicine costs[25] - The National Healthcare Security Administration promotes industry structural optimization and supports innovative drugs and traditional Chinese medicine development through a combination of policies including volume-based procurement, medical insurance negotiations, and dynamic catalog adjustments[25] Company's Principal Business The Company is an integrated pharmaceutical manufacturing enterprise engaged in R&D, production, and sales, primarily producing traditional Chinese medicine preparations, supplemented by chemical drugs, covering digestive, cardiovascular, kidney-tonifying, trauma, and diagnostic medicine fields - The Company's principal business is pharmaceutical manufacturing, integrating R&D, production, and sales[25] - The Company's products are primarily traditional Chinese medicine preparations, supplemented by chemical drugs[25] - Key products include medications for the digestive system, cardiovascular and cerebrovascular systems, kidney-tonifying and urination-reducing, trauma, and diagnostic purposes[25] Company's Main Products The Company offers a diverse product line, including traditional Chinese medicines like Simotang Oral Liquid and Ginkgo Leaf Capsules, chemical drugs such as Artificial Bezoar Metronidazole Capsules, and contrast agents like Iohexol Injection, covering digestive, cardiovascular, respiratory, and anti-infective therapeutic areas - Traditional Chinese medicine products include Simotang Oral Liquid (for regulating qi, relieving pain, and promoting digestion), Suoquan Capsules (for tonifying kidneys and reducing urination), Ginkgo Leaf Capsules (for promoting blood circulation and clearing collaterals), and Tianma Xingnao Capsules (for nourishing liver and kidney, clearing collaterals, and relieving pain)[26][27] - Chemical drug products include Artificial Bezoar Metronidazole Capsules (for acute pericoronitis of wisdom teeth, etc.), Dextromethorphan Hydrobromide Granules (for dry cough), and Compound Amantadine Hydrochloride Tablets (for cold symptoms)[28] - Contrast agent products include Iohexol Injection, Iopamidol Injection, and Diatrizoate Meglumine Injection, used for various X-ray and CT contrast examinations[29][30] Company's Business Model The Company employs a mature procurement system combining external sourcing with proprietary cultivation bases for traditional Chinese medicine, utilizes a market-oriented, make-to-order production model with lean manufacturing, and implements a 'business-promotion separation' marketing strategy to expand terminal coverage and e-commerce channels - Procurement Model: Established a mature procurement management system, adopting an 'external procurement + proprietary cultivation base supply' model, increasing tender procurement efforts, and closely tracking raw material market dynamics[30] - Production Model: Market-oriented, make-to-order, improving efficiency, reducing energy consumption and costs through lean production activities, and adhering to GMP standards[31] - Marketing Model: Established a 'marketing decision, marketing execution, marketing assurance' three-pillar structure, implementing 'business-promotion separation', deepening terminal coverage, and expanding to mainstream e-commerce platforms like JD.com and Alibaba[31] Company's Market Position Leveraging years of operation, the Company has built a strong reputation and customer base, with its flagship Simotang Oral Liquid, a national Class B medical insurance product and exclusive offering with over 500 years of history, holding a significant market share, and multiple products securing bids in centralized procurement, ensuring sustained R&D investment and product diversification for future growth - The Company's products received honors such as 'Most Popular Star Product in Pharmacies' and '2024-2025 Best-Selling Product in China's Pharmaceutical Retail Market'[32] - Simotang Oral Liquid is a Class B product in the National Medical Insurance Catalog, an exclusive product of the Company, with a formula history of over 500 years, holding a certain market share[32] - Multiple Company products have secured bids in centralized volume-based procurement in regions such as the Beijing-Tianjin-Hebei '3+N' alliance, Fujian, Jiangsu, and Guangdong, with continuous R&D investment planned to enrich the product structure[33] Analysis of Core Competencies The Company's core competencies stem from a comprehensive competitive advantage built on reliable leading exclusive products, a rich product portfolio, a strong sales team, and distinctive sales promotion models, with no significant changes observed during the reporting period, as detailed in the 2024 annual report - The Company's core competencies primarily include leading exclusive products, a cluster of other product categories, a strong sales team, and distinctive sales promotion models[34] - During the reporting period, the Company's core competencies did not undergo significant changes[34] Analysis of Principal Business In the first half of 2025, the Company's operating revenue grew by 5.91% to 509 million Yuan, with pharmaceutical manufacturing accounting for 99.95%, driven by growth in Simotang Oral Liquid and Tianma Xingnao Capsules, while administrative expenses increased by 31.98% due to increased meeting and entertainment costs, financial expenses decreased by 54.45% due to reduced bank loans, and net cash flow from operating activities surged by 155.49% from increased sales receipts Year-on-Year Changes in Key Financial Data | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 508,850,630.33 | 480,445,782.48 | 5.91% | - | | Operating Cost | 118,145,490.52 | 121,991,256.39 | -3.15% | - | | Selling Expenses | 190,200,177.63 | 200,756,658.29 | -5.26% | - | | Administrative Expenses | 36,419,377.62 | 27,595,557.35 | 31.98% | Increase in company and branch annual meeting and business entertainment expenses | | Financial Expenses | 418,254.26 | 918,164.56 | -54.45% | Decrease in bank loans, leading to reduced interest expenses | | Income Tax Expense | 28,446,808.55 | 15,373,326.94 | 85.04% | Increase in current income tax | | Net Cash Flow from Operating Activities | 110,101,758.28 | 43,093,836.05 | 155.49% | Increase in cash received from sales of goods and rendering of services | | Net Cash Flow from Investing Activities | -75,439,954.41 | 24,318,079.71 | -410.22% | Increase in cash paid for investments in bank wealth management products | | Net Cash Flow from Financing Activities | -19,093,458.32 | -8,629,206.40 | -121.27% | Decrease in bank borrowings | | Net Increase in Cash and Cash Equivalents | 15,568,345.55 | 58,782,709.36 | -73.52% | Increase in operating cash flow, decrease in investing and financing cash flow | | Investment Income | -39,497,582.73 | 11,810,076.16 | -434.44% | Decrease in total investment income from associates accounted for using the equity method | | Credit Impairment Losses | -2,668,841.78 | -1,787,330.39 | -49.32% | Increase in provision for bad debts of other receivables | | Non-operating Expenses | 503,839.35 | 262,329.35 | 92.06% | Scrapping of subsidiary's productive biological assets (Fructus Aurantii) | Operating Revenue Composition (by Product and Region) | Category | Item | Amount (Yuan) | Proportion of Operating Revenue | Prior Year Period Amount (Yuan) | Prior Year Period Proportion | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | Pharmaceutical Manufacturing | 508,591,804.17 | 99.95% | 479,926,042.36 | 99.89% | 5.97% | | | Other Businesses | 258,826.16 | 0.05% | 519,740.12 | 0.11% | -50.20% | | By Product | Simotang Oral Liquid | 278,886,656.28 | 54.81% | 258,789,548.16 | 53.86% | 7.77% | | | Tianma Xingnao Capsules | 118,974,547.33 | 23.38% | 105,532,872.98 | 21.97% | 12.74% | | By Region | Central-South Region | 220,281,968.40 | 43.29% | 217,688,662.54 | 45.31% | 1.19% | | | East China Region | 91,859,468.09 | 18.05% | 81,627,645.48 | 16.99% | 12.53% | | | Southwest Region | 88,723,791.81 | 17.44% | 79,525,316.47 | 16.55% | 11.57% | Industries, Products, or Regions Accounting for Over 10% of the Company's Operating Revenue or Operating Profit | Category | Item | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Profit Margin | Operating Revenue Year-on-Year Change | Operating Cost Year-on-Year Change | Gross Profit Margin Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | Pharmaceutical Manufacturing | 508,591,804.17 | 118,015,026.97 | 76.80% | 5.97% | -2.97% | 2.14% | | By Product | Simotang Oral Liquid | 278,886,656.28 | 64,932,791.60 | 76.72% | 7.77% | 0.03% | 1.80% | | | Tianma Xingnao Capsules | 118,974,547.33 | 21,076,541.10 | 82.28% | 12.74% | 1.20% | 2.01% | | By Region | East China Region | 91,859,468.09 | 20,143,497.40 | 78.07% | 12.53% | 7.82% | 0.96% | | | Central-South Region | 220,281,968.40 | 54,525,806.81 | 75.25% | 1.19% | -6.71% | 2.10% | | | North China Region | 51,598,201.60 | 11,463,390.73 | 77.78% | 4.83% | -3.05% | 1.80% | | | Southwest Region | 88,723,791.81 | 19,583,626.80 | 77.93% | 11.57% | -0.90% | 2.78% | Analysis of Non-Principal Business Non-principal business significantly impacted total profit, with investment income at negative 39.4976 million Yuan, representing -40.73%, primarily due to reduced equity-accounted associate investment income, while fair value change gains/losses were 0.8989 million Yuan from bank wealth management and structured deposits, and asset impairment and non-operating income/expenses were minor and mostly non-recurring Non-Principal Business Items and Impact on Total Profit | Item | Amount (Yuan) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | -39,497,582.73 | -40.73% | Mainly investment income from associates accounted for using the equity method during the reporting period | Yes | | Gains/Losses from Changes in Fair Value | 898,900.83 | 0.93% | Mainly income from bank wealth management products and structured deposits measured at fair value with changes recognized in current profit or loss during the reporting period | No | | Asset Impairment | 3,834.07 | 0.00% | Mainly inventory impairment losses and contract performance cost impairment losses | No | | Non-operating Income | 136,426.24 | 0.14% | - | No | | Non-operating Expenses | 503,839.35 | 0.52% | Mainly losses from scrapping biological assets | No | Analysis of Assets and Liabilities As of the end of the reporting period, the Company's total assets and net assets attributable to shareholders increased, with long-term equity investments decreasing by 2.62% and cash and accounts receivable slightly rising, while short-term borrowings, accounts payable, contract liabilities, and employee compensation decreased, and taxes payable and other current liabilities increased, with other comprehensive income decreasing by 16.2054 million Yuan due to reduced equity-accounted associate comprehensive income Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (Yuan) | Proportion of Total Assets | Amount at End of Prior Year (Yuan) | Proportion of Total Assets | Proportion Change | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 143,590,735.43 | 5.58% | 128,022,889.88 | 5.03% | 0.55% | - | | Accounts Receivable | 313,485,231.48 | 12.17% | 287,184,352.67 | 11.27% | 0.90% | - | | Inventories | 207,024,087.81 | 8.04% | 222,876,023.84 | 8.75% | -0.71% | - | | Long-term Equity Investments | 797,726,445.52 | 30.98% | 855,753,806.92 | 33.60% | -2.62% | - | | Short-term Borrowings | 67,344,739.89 | 2.61% | 84,509,144.27 | 3.32% | -0.71% | - | | Prepayments | 2,586,093.31 | 0.10% | 4,361,861.21 | 0.17% | -0.07% | Prepaid R&D expenses and raw material payments at the end of the prior year were completed in R&D and raw materials received during the reporting period | | Accounts Payable | 25,062,397.76 | 0.97% | 41,615,472.36 | 1.63% | -0.66% | Increase in material payments during the reporting period | | Contract Liabilities | 1,242,466.95 | 0.05% | 2,722,919.20 | 0.11% | -0.06% | Decrease in cash received related to sales contracts at the end of the reporting period | | Employee Benefits Payable | 17,949,706.76 | 0.70% | 39,741,974.20 | 1.56% | -0.86% | Prior year-end bonuses were paid during the reporting period | | Taxes Payable | 20,509,402.13 | 0.80% | 10,116,082.39 | 0.40% | 0.40% | Increase in corporate income tax payable at the end of the reporting period | | Other Current Liabilities | 28,888,357.75 | 1.12% | 12,556,113.10 | 0.49% | 0.63% | Increase in bank acceptance bills endorsed during the reporting period | | Other Comprehensive Income | 14,246,043.33 | 0.55% | 30,451,448.19 | 1.20% | -0.65% | Decrease in other comprehensive income from associates accounted for using the equity method that can be reclassified to profit or loss during the reporting period | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (Yuan) | Fair Value Change Gains/Losses for Current Period (Yuan) | Amount Purchased in Current Period (Yuan) | Amount Sold in Current Period (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 244,116,733.61 | 898,900.83 | 875,200,000.00 | 806,000,000.00 | 312,843,480.15 | | Receivables Financing | 86,769,940.56 | - | - | - | 64,602,041.85 | | Total Above | 330,886,674.17 | 898,900.83 | 875,200,000.00 | 806,000,000.00 | 377,445,522.00 | - As of the end of the reporting period, the Company had no restricted asset rights[48] Analysis of Investment Status During the reporting period, the Company had no significant equity investments, non-equity investments, securities investments, derivative investments, or use of raised funds - The Company had no securities investments during the reporting period[49] - The Company had no derivative investments during the reporting period[50] - The Company had no use of raised funds during the reporting period[51] Significant Asset and Equity Disposals During the reporting period, the Company did not undertake any significant asset or equity disposal transactions - The Company did not dispose of significant assets during the reporting period[52] - The Company did not dispose of significant equity during the reporting period[53] Analysis of Major Holding and Associate Companies The Company's major holding subsidiary, Yunnan Yongzitang Pharmaceutical Co., Ltd., performed well, while associate Hunan Sanxiang Bank Co., Ltd. experienced a significant profit decline from the prior year, primarily due to increased credit risk for small and micro enterprises amid a macroeconomic downturn Major Subsidiaries and Associates with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Business Nature | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yunnan Yongzitang Pharmaceutical Co., Ltd. | Subsidiary | Pharmaceutical Production and Operation | 40,960,000.00 | 467,624,412.06 | 426,693,139.91 | 140,537,750.16 | 46,606,259.88 | 40,488,969.37 | | Hunan Sanxiang Bank Co., Ltd. | Associate | Financial Services Industry | 3,000,000,000.00 | 51,744,214,698.58 | 4,706,895,556.50 | 651,398,727.70 | -237,861,330.47 | -241,375,207.76 | - Hunan Sanxiang Bank Co., Ltd.'s profit significantly decreased compared to the prior year period, mainly due to increased operational difficulties for small and micro enterprises and rising credit risk amidst a macroeconomic downturn[55] Information on Structured Entities Controlled by the Company During the reporting period, the Company did not control any structured entities - The Company had no controlled structured entities during the reporting period[56] Risks Faced by the Company and Countermeasures The Company faces risks from pharmaceutical industry policy adjustments, reliance on leading products, raw material procurement, product quality and environmental safety, and drug R&D and generic drug consistency evaluations, which it addresses by monitoring policies, optimizing product structure, enhancing R&D, expanding market reach, building stable supply chains, strengthening quality control, and allocating R&D resources effectively - The Company faces pharmaceutical industry policy risks, including medical insurance payment and price controls, stricter regulation, R&D approval uncertainties, and the impact of grassroots medical reforms[56] - The Company has a risk of reliance on its leading product, Simotang Oral Liquid, which accounts for over 50% of its operating revenue[56] - Raw material procurement risk stems from the scarcity of wild traditional Chinese medicine resources and the significant environmental impact on artificial cultivation, potentially leading to shortages, price increases, or quality fluctuations[56] - The Company will address risks by consolidating leading product advantages, increasing R&D investment, exploring M&A opportunities, building stable supply chains, strengthening quality control and environmental protection investments, and rationally allocating R&D resources[59] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The Company has not disclosed a market value management system or a valuation enhancement plan - The Company has not formulated a market value management system[60] - The Company has not disclosed a valuation enhancement plan[60] Implementation of 'Dual Improvement in Quality and Returns' Action Plan The Company has not disclosed an announcement regarding the 'Dual Improvement in Quality and Returns' action plan - The Company has not disclosed an announcement regarding the 'Dual Improvement in Quality and Returns' action plan[60] Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the Company's directors, supervisors, or senior management, with specific details available in the 2024 annual report - The Company's directors, supervisors, and senior management did not change during the reporting period[62] Profit Distribution and Capital Reserve Conversion to Share Capital in Current Reporting Period The Company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the semi-annual period - The Company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the semi-annual period[63] Implementation of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, the Company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures, nor any implementation thereof - The Company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures or their implementation during the reporting period[64] Environmental Information Disclosure The Company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[65] Social Responsibility The Company is committed to social responsibility by enhancing corporate governance, protecting shareholder and creditor rights through timely disclosure, ensuring employee welfare and safety, upholding fair procurement practices, safeguarding intellectual property, delivering high-quality products, prioritizing environmental protection and energy conservation, and actively contributing to national taxation and public welfare for local economic and social stability - The Company strictly adheres to laws and regulations to improve corporate governance, timely fulfills information disclosure obligations, treats all shareholders equally, and protects the rights and interests of shareholders and creditors[65] - The Company complies with labor laws, provides a good working environment, social insurance, and housing provident fund for employees, emphasizes talent development and production safety, and safeguards employees' legitimate interests[65][66] - The Company adheres to open and fair procurement, protects the intellectual property and trade secrets of suppliers and customers, strictly implements Good Manufacturing Practices for pharmaceuticals, provides high-quality products, and safeguards consumer rights[66] - The Company highly values environmental protection, clean production, and energy conservation and emission reduction, increasing investment in environmental technological upgrades to enhance environmental management levels[66] - The Company actively supports national fiscal revenue and local economic development, engages in social welfare and charitable causes, and contributes to social harmony and stability[67] Significant Matters Fulfillment of Commitments During the reporting period, the Company's actual controller, shareholders, and related parties strictly fulfilled all commitments, including share reductions, avoiding horizontal competition, regulating related-party transactions, and preventing fund occupation, with no overdue unfulfilled commitments - Individual shareholder Liu Zhengqing committed to transferring no more than 25% of his total Company shares annually during his tenure; no transfers within six months after leaving office, and no more than 50% sold within twelve months[69] - Controlling shareholder Hainan Hansen Holdings (Limited Partnership), Liu Ling'an, and Wang Xiangying committed not to engage in businesses identical or similar to the Company's principal business that constitute substantial competition[69] - The controlling shareholder and actual controller committed to strictly adhering to related-party transaction decision-making procedures, ensuring legality, fairness, and reasonableness, and not harming the interests of other shareholders[69] - The controlling shareholder and actual controller committed to regulating fund flows between the Company and its affiliates and the listed company, preventing any further unauthorized occupation of funds[69] - All commitments were strictly fulfilled on time[69] Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties During the reporting period, there was no non-operating occupation of funds by the controlling shareholder or other related parties of the listed company - During the reporting period, there was no non-operating occupation of funds by the controlling shareholder or other related parties of the listed company[70] Illegal External Guarantees During the reporting period, the Company had no illegal external guarantees - The Company had no illegal external guarantees during the reporting period[71] Appointment and Dismissal of Accounting Firms The Company's semi-annual report was not audited - The Company's semi-annual report was not audited[72] Explanation by the Board of Directors and Supervisory Board on the Accounting Firm's 'Non-Standard Audit Report' for the Current Reporting Period Not applicable, as the Company's semi-annual report was not audited Explanation by the Board of Directors on the 'Non-Standard Audit Report' for the Prior Year Not applicable Bankruptcy and Reorganization Matters During the reporting period, the Company did not experience any bankruptcy or reorganization matters - During the reporting period, the Company did not experience any bankruptcy or reorganization matters[73] Litigation Matters During the reporting period, the Company had no significant litigation or arbitration matters - During the current reporting period, the Company had no significant litigation or arbitration matters[74] Penalties and Rectification Status During the reporting period, the Company had no penalties or rectification situations - During the reporting period, the Company had no penalties or rectification situations[74] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller Not applicable Significant Related-Party Transactions During the reporting period, the Company did not engage in significant related-party transactions concerning daily operations, asset or equity acquisitions/disposals, joint external investments, related-party creditor-debtor relationships, or dealings with finance companies - During the reporting period, the Company had no related-party transactions related to daily operations[76] - During the reporting period, the Company had no related-party transactions involving asset or equity acquisitions or disposals[77] - During the reporting period, the Company had no related-party transactions involving joint external investments[78] - During the reporting period, the Company had no related-party creditor-debtor relationships[79] - The Company had no other significant related-party transactions during the reporting period[82] Significant Contracts and Their Performance During the reporting period, the Company had no entrustment, contracting, or leasing matters, nor any significant guarantees, but engaged in entrusted wealth management with an outstanding balance of 312.20 million Yuan at period-end, with no overdue unrecovered amounts, and no other significant contracts - The Company had no entrustment situations during the reporting period[83] - The Company had no significant guarantee situations during the reporting period[86] Entrusted Wealth Management | Specific Type | Source of Entrusted Wealth Management Funds | Amount of Entrusted Wealth Management Occurred (Yuan) | Outstanding Balance (Yuan) | Overdue Unrecovered Amount (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 233,200,000 | 233,200,000 | 0 | | Bank Wealth Management Products | Own Funds | 146,000,000 | 79,000,000 | 0 | | Total | | 379,200,000 | 312,200,000 | 0 | - The Company had no other significant contracts during the reporting period[88] Explanation of Other Significant Matters The Company in the reporting period obtained a drug registration certificate for Empagliflozin Tablets, and received approval for an extended protection period for Simotang Oral Liquid as a national traditional Chinese medicine protected variety - The Company received the 'Drug Registration Certificate' for the chemical drug 'Empagliflozin Tablets' approved and issued by the National Medical Products Administration (February 12, 2025)[89] - The Company's Simotang Oral Liquid was approved for an extended protection period as a national traditional Chinese medicine protected variety, continuing to receive Level II protection (March 1, 2025)[89] Significant Matters of Company Subsidiaries During the reporting period, the Company had no significant matters concerning its subsidiaries - The Company had no significant matters concerning its subsidiaries during the reporting period[91] Share Changes and Shareholder Information Share Change Status During the reporting period, there were no changes in the Company's total share capital, restricted shares, or unrestricted shares in terms of quantity and proportion, nor any share repurchases or concentrated bidding reductions of repurchased shares Share Change Status | Share Type | Quantity Before This Change (shares) | Proportion Before This Change | Net Change (increase/decrease) in This Period (shares) | Quantity After This Change (shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 5,355,000 | 1.06% | 0 | 5,355,000 | 1.06% | | Of which: Shares held by domestic natural persons | 5,355,000 | 1.06% | 0 | 5,355,000 | 1.06% | | II. Unrestricted Shares | 497,845,000 | 98.94% | 0 | 497,845,000 | 98.94% | | Of which: RMB Ordinary Shares | 497,845,000 | 98.94% | 0 | 497,845,000 | 98.94% | | III. Total Shares | 503,200,000 | 100.00% | 0 | 503,200,000 | 100.00% | - During the reporting period, there were no approvals for share changes, no transfer of shares, and no progress on share repurchase implementation[94] Securities Issuance and Listing Status During the reporting period, the Company had no securities issuance or listing activities - The Company had no securities issuance or listing activities during the reporting period[94] Number of Shareholders and Shareholding Status of the Company As of the end of the reporting period, the Company had 24,141 ordinary shareholders, with controlling shareholder Hainan Hansen Holdings (Limited Partnership) holding 42.13% and pledging 47.5 million shares, while among the top ten shareholders, Xia Chongyang, Hu Shaopan, and Wang Guowei increased their holdings, and Hainan Hansen Holdings (Limited Partnership) held 212 million unrestricted shares, with Shanghai Fosun Pharmaceutical Industrial Development Co., Ltd. holding 24.2638 million shares - As of the end of the reporting period, the total number of ordinary shareholders was 24,141[95] Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at End of Reporting Period (shares) | Change in Holdings During Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hainan Hansen Holdings (Limited Partnership) | Domestic Non-state-owned Legal Person | 42.13% | 212,006,189 | 0 | 0 | 212,006,189 | Pledged | 47,500,000 | | Shanghai Fosun Pharmaceutical Industrial Development Co., Ltd. | Domestic Non-state-owned Legal Person | 4.82% | 24,263,820 | 0 | 0 | 24,263,820 | Not applicable | 0 | | 夏重阳 | Domestic Natural Person | 1.94% | 9,760,500 | 4,700,500 | 0 | 9,760,500 | Not applicable | 0 | | 刘正清 | Domestic Natural Person | 1.42% | 7,140,000 | 0 | 5,355,000 | 1,785,000 | Not applicable | 0 | | 何三星 | Domestic Natural Person | 1.11% | 5,610,000 | 0 | 0 | 5,610,000 | Not applicable | 0 | | 胡绍盘 | Domestic Natural Person | 0.57% | 2,888,800 | 2,888,800 | 0 | 2,888,800 | Not applicable | 0 | | 王国伟 | Domestic Natural Person | 0.57% | 2,883,900 | 2,883,900 | 0 | 2,883,900 | Not applicable | 0 | | 姜爱福 | Domestic Natural Person | 0.53% | 2,685,600 | 0 | 0 | 2,685,600 | Not applicable | 0 | | 何锡华 | Domestic Natural Person | 0.53% | 2,660,153 | 0 | 0 | 2,660,153 | Not applicable | 0 | - Controlling shareholder Hainan Hansen Holdings (Limited Partnership) holds 42.13% of the Company's shares, Liu Zhengqing serves as the Company's Chairman and President, and He Sanxing serves as the General Manager of subsidiary Hansen Health Industry (Hunan) Co., Ltd[95][96] Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the shareholdings of the Company's directors, supervisors, and senior management, as detailed in the 2024 annual report - The Company's directors, supervisors, and senior management had no changes in their shareholdings during the reporting period[97] Changes in Controlling Shareholder or Actual Controller During the reporting period, neither the Company's controlling shareholder nor its actual controller changed - The Company's controlling shareholder did not change during the reporting period[98] - The Company's actual controller did not change during the reporting period[98] Preferred Share Information During the reporting period, the Company had no preferred shares - During the reporting period, the Company had no preferred shares[99] Bond Information During the reporting period, the Company had no bond-related information - During the reporting period, the Company had no bond-related information[101] Financial Report Audit Report The Company's semi-annual financial report was not audited - The Company's semi-annual financial report was not audited[103] Financial Statements This section presents the Company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity for the first half of 2025, comprehensively detailing its financial position, operating results, and cash flows, with consolidated total assets of 2.575 billion Yuan, net profit attributable to parent of 68.5384 million Yuan, and net cash flow from operating activities of 110 million Yuan - The consolidated balance sheet shows total assets of 2,575,331,979.01 Yuan, total liabilities of 319,616,885.59 Yuan, and total owners' equity of 2,255,715,093.42 Yuan at period-end[107] - The consolidated income statement shows total operating revenue of 508,850,630.33 Yuan, net profit of 68,538,438.13 Yuan, and basic earnings per share of 0.1362 Yuan/share for the first half of 2025[111] - The consolidated cash flow statement shows net cash flow from operating activities of 110,101,758.28 Yuan, net cash flow from investing activities of -75,439,954.41 Yuan, and net cash flow from financing activities of -19,093,458.32 Yuan for the first half of 2025[116] Consolidated Balance Sheet As of June 30, 2025, the Company's consolidated total assets reached 2.575 billion Yuan, a 1.10% increase from the beginning of the period, with current assets totaling 1.226 billion Yuan and non-current assets 1.350 billion Yuan, while total liabilities were 320 million Yuan and total owners' equity 2.256 billion Yuan, notably with long-term equity investments decreasing by 2.62% and other comprehensive income by 53.22% Key Data from Consolidated Balance Sheet | Item | Ending Balance (Yuan) | Beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 2,575,331,979.01 | 2,547,234,247.32 | | Total Current Assets | 1,225,582,607.49 | 1,123,168,939.47 | | Total Non-current Assets | 1,349,749,371.52 | 1,424,065,307.85 | | Total Liabilities | 319,616,885.59 | 343,852,187.17 | | Total Owners' Equity | 2,255,715,093.42 | 2,203,382,060.15 | - Long-term equity investments had an ending balance of 797,726,445.52 Yuan, a decrease from the beginning balance of 855,753,806.92 Yuan[106] - Other comprehensive income had an ending balance of 14,246,043.33 Yuan, a significant decrease from the beginning balance of 30,451,448.19 Yuan[107] Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were 2.520 billion Yuan, slightly below the beginning of the period, with current assets totaling 714 million Yuan and non-current assets 1.805 billion Yuan, while total liabilities were 294 million Yuan and total owners' equity 2.225 billion Yuan, notably with decreases in long-term equity investments and fixed assets, significant declines in employee benefits payable and contract liabilities, and increases in taxes payable and other current liabilities Key Data from Parent Company Balance Sheet | Item | Ending Balance (Yuan) | Beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 2,519,611,026.24 | 2,530,093,294.11 | | Total Current Assets | 714,379,966.71 | 653,718,721.02 | | Total Non-current Assets | 1,805,231,059.53 | 1,876,374,573.09 | | Total Liabilities | 294,336,136.20 | 321,363,175.08 | | Total Owners' Equity | 2,225,274,890.04 | 2,208,730,119.03 | - The parent company's long-term equity investments had an ending balance of 1,409,764,706.26 Yuan, a decrease from the beginning balance of 1,467,792,067.66 Yuan[108] - The parent company's employee benefits payable had an ending balance of 15,012,584.83 Yuan, a significant decrease from the beginning balance of 34,773,853.46 Yuan[109] Consolidated Income Statement In the first half of 2025, the Company's consolidated total operating revenue was 509 million Yuan, up 5.91% year-on-year, with operating profit at 97.3527 million Yuan, total profit at 96.9852 million Yuan, and net profit at 68.5384 million Yuan, a 31.80% decrease year-on-year, primarily due to negative investment income of 39.4976 million Yuan from reduced associate investment income, while income tax expense significantly increased by 85.04% Key Data from Consolidated Income Statement | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | I. Total Operating Revenue | 508,850,630.33 | 480,445,782.48 | | II. Total Operating Costs | 372,994,919.63 | 379,976,886.84 | | III. Operating Profit | 97,352,659.79 | 115,807,150.01 | | IV. Total Profit | 96,985,246.68 | 115,867,325.30 | | V. Net Profit | 68,538,438.13 | 100,493,998.36 | | Net Profit Attributable to Owners of the Parent Company | 68,538,438.13 | 100,493,998.36 | | VI. Net Other Comprehensive Income After Tax | -16,205,404.86 | 14,068,081.35 | | VII. Total Comprehensive Income | 52,333,033.27 | 114,562,079.71 | | VIII. Basic Earnings Per Share | 0.1362 | 0.1997 | - Investment income was -39,497,582.73 Yuan, a significant decrease from 11,810,076.16 Yuan in the prior year period, mainly due to reduced investment income from associates and joint ventures[110] - Income tax expense was 28,446,808.55 Yuan, an 85.04% increase from 15,373,326.94 Yuan in the prior year period[111] Parent Company Income Statement In the first half of 2025, the parent company's operating revenue was 365 million Yuan, up 6.15% year-on-year, with operating profit at 55.0348 million Yuan, total profit at 55.0375 million Yuan, and net profit at 32.7502 million Yuan, a 58.10% decrease year-on-year, primarily due to negative investment income of 40.7384 million Yuan from reduced investment income from associates and joint ventures Key Data from Parent Company Income Statement | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | I. Operating Revenue | 365,474,136.74 | 344,303,515.14 | | II. Operating Profit | 55,034,783.96 | 89,916,262.10 | | III. Total Profit | 55,037,473.66 | 90,165,031.27 | | IV. Net Profit | 32,750,175.87 | 78,367,962.93 | | V. Net Other Comprehensive Income After Tax | -16,205,404.86 | 14,068,081.35 | | VI. Total Comprehensive Income | 16,544,771.01 | 92,436,044.28 | - The parent company's investment income was -40,738,373.79 Yuan, a significant decrease from 11,112,482.15 Yuan in the prior year period, mainly due to reduced investment income from associates and joint ventures[113] - The parent company's net profit decreased by 58.10% year-on-year[113] Consolidated Cash Flow Statement In the first half of 2025, the Company's consolidated net cash flow from operating activities was 110 million Yuan, a 155.49% increase year-on-year, primarily due to increased cash received from sales, while net cash flow from investing activities was -75.4399 million Yuan due to increased payments for bank wealth management products, and net cash flow from financing activities was -19.0935 million Yuan due to reduced bank borrowings Key Data from Consolidated Cash Flow Statement | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | I. Net Cash Flow from Operating Activities | 110,101,758.28 | 43,093,836.05 | | II. Net Cash Flow from Investing Activities | -75,439,954.41 | 24,318,079.71 | | III. Net Cash Flow from Financing Activities | -19,093,458.32 | -8,629,206.40 | | V. Net Increase in Cash and Cash Equivalents | 15,568,345.55 | 58,782,709.36 | | VI. Cash and Cash Equivalents at Period-End | 142,116,982.95 | 109,909,913.20 | - Net cash flow from operating activities increased by 155.49% year-on-year, primarily due to increased cash received from sales of goods and rendering of services[37][115] - Net cash flow from investing activities decreased by 410.22% year-on-year, primarily due to increased cash paid for investments in bank wealth management products[37][116] Parent Company Cash Flow Statement In the first half of 2025, the parent company's net cash flow from operating activities was 53.9069 million Yuan,同比增长28.57%。投资活动现金流量净额为-13.7654 million Yuan, primarily due to increased investment payments, and net cash flow from financing activities was -19.5082 million Yuan due to increased debt repayments Key Data from Parent Company Cash Flow Statement | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | I. Net Cash Flow from Operating Activities | 53,906,862.00 | 41,928,589.39 | | II. Net Cash Flow from Investing Activities | -13,765,396.31 | 36,612,499.67 | | III. Net Cash Flow from Financing Activities | -19,508,249.99 | -12,438,095.29 | | V. Net Increase in Cash and Cash Equivalents | 20,633,215.70 | 66,102,993.77 | | VI. Cash and Cash Equivalents at Period-End | 124,503,944.18 | 100,214,407.53 | - The parent company's net cash flow from operating activities increased by 28.57% year-on-year[117] - The parent company's net cash flow from investing activities decreased by 137.65% year-on-year, primarily due to increased cash paid for investments[118] Consolidated Statement of Changes in Owners' Equity In the first half of 2025, the Company's consolidated total owners' equity was 2.256 billion Yuan, a 2.38% increase from the beginning of the period, while total comprehensive income attributable to owners of the parent company was 52.3330 million Yuan, a significant decrease from the prior year, with other comprehensive income decreasing by 16.2054 million Yuan primarily due to reduced equity-accounted comprehensive income reclassifiable to profit or loss Key Data from Consolidated Statement of Changes in Owners' Equity | Item | H1 2025 Ending Balance (Yuan) | H1 2025 Beginning Balance (Yuan) | | :--- | :--- | :--- | | Share Capital | 503,200,000.00 | 503,200,000.00 | | Capital Reserve | 234,116,276.27 | 234,116,276.27 | | Other Comprehensive Income | 14,246,043.33 | 30,451,448.19 | | Surplus Reserve | 191,075,411.87 | 191,075,411.87 | | Retained Earnings | 1,313,077,361.95 | 1,244,538,923.82 | | Total Owners' Equity Attributable to the Parent Company | 2,255,715,093.42 | 2,203,382,060.15 | | Total Owners' Equity | 2,255,715,093.42 | 2,203,382,060.15 | - Total comprehensive income attributable to owners of the parent company for the current period was 52,333,033.27 Yuan, compared to 114,562,079.71 Yuan in the prior year period, a year-on-year decrease of 54.29%[121][125] - Other comprehensive income decreased by 16,205,404.86 Yuan in the current period, primarily due to reduced other comprehensive income from equity-accounted associates that can be reclassified to profit or loss[121][125] Parent Company Statement of Changes in Owners' Equity In the first half of 2025, the parent company's total owners' equity was 2.225 billion Yuan, a 0.75% increase from the beginning of the period, while total comprehensive income attributable to owners of the parent company was 16.5448 million Yuan, a significant decrease from the prior year, with other comprehensive income decreasing by 16.2054 million Yuan primarily due to reduced equity-accounted comprehensive income reclassifiable to profit or loss Key Data from Parent Company Statement of Changes in Owners' Equity | Item | H1 2025 Ending Balance (Yuan) | H1 2025 Beginning Balance (Yuan) | | :--- | :--- | :--- | | Share Capital | 503,200,000.00 | 503,200,000.00 | | Capital Reserve | 240,395,653.57 | 240,395,653.57 | | Other Comprehensive Income | 14,246,043.33 | 30,451,448.19 | | Surplus Reserve | 191,075,411.87 | 191,075,411.87 | | Retained Earnings | 1,276,357,781.27 | 1,243,607,605.40 | | Total Owners' Equity | 2,225,274,890.04 | 2,208,730,119.03 | - Total comprehensive income of the parent company for the current period was 16,544,771.01 Yuan, compared to 92,436,044.28 Yuan in the prior year period, a year-on-year decrease of 82.10%[129][132] - Other comprehensive income decreased by 16,205,404.86 Yuan in the current period, primarily due to reduced other comprehensive income from equity-accounted associates that can be reclassified to profit or loss[129][131] Company Basic Information Hunan Hansen Pharmaceutical Co., Ltd., established on January 22, 2008, and listed on the Shenzhen Stock Exchange (stock code: 002412) on May 25, 2010, has a registered capital of 503.2 million Yuan, primarily engages in pharmaceutical manufacturing with traditional Chinese and Western medicine preparations, including leading products like Simotang Oral Liquid, is controlled by Mr. Liu Ling