拱东医疗(605369) - 2025 Q2 - 季度财报

Section I Definitions This section provides definitions for key terms and entities used throughout the report to ensure accurate interpretation Definitions of Common Terms This section defines key terms and company-related entities, including company names, subsidiaries, major suppliers, industry regulators, and common materials, to ensure accurate report interpretation - Full company name: Zhejiang Gongdong Medical Technology Co., Ltd., abbreviated as: Gongdong Medical[12] - Major subsidiaries include: Taizhou Jinchi Investment Management Partnership (Limited Partnership), Zhejiang Maide Medical Mold Co., Ltd., Shanghai Gongdong Technology Co., Ltd., Zhengzhou Gongdong Medical Technology Co., Ltd., GD MEDICAL CO., LTD. (Gongdong Thailand), and Trademark Plastics Inc. (TPI)[12] - The reporting period is defined as January 1, 2025, to June 30, 2025[13] Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and key financial performance during the reporting period I. Company Information This section introduces the company's basic information, including its Chinese name, abbreviation, foreign name, and legal representative - Company's legal representative: Shi Huiyong[15] II. Contact Person and Contact Information This section provides contact information for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, faxes, and email addresses - Board Secretary: Mu Lingting, Securities Affairs Representative: Wang Jiamin[16] - Contact address: No. 10 Beiyuan Avenue, Huangyan District, Taizhou City, Zhejiang Province[16] III. Brief Introduction to Changes in Basic Information This section details the company's registered and office addresses, noting no changes occurred during the reporting period - The company's registered and office addresses are both No. 10 Beiyuan Avenue, Huangyan District, Taizhou City, Zhejiang Province, with no changes during the reporting period[17] IV. Brief Introduction to Changes in Information Disclosure and Document Custody Locations This section lists the company's designated newspapers for information disclosure, the website address for semi-annual reports, and the report custody location, noting no changes during the reporting period - The company's selected newspapers for information disclosure include China Securities Journal, Shanghai Securities News, Securities Times, and Securities Daily[18] - The website address for publishing semi-annual reports is **www.sse.com.cn**[18](index=18&type=chunk) V. Company Stock Overview This section provides basic information about the company's stock, including its type, listing exchange, stock abbreviation, and stock code - Company stock abbreviation: Gongdong Medical, stock code: 605369, listing exchange: Shanghai Stock Exchange[19] VII. Company's Key Accounting Data and Financial Indicators This section details the company's key accounting data and financial indicators for the first half of 2025, showing a slight increase in operating revenue but significant declines in total profit, net profit attributable to shareholders, and earnings per share, along with explanations for these changes 2025 H1 Key Accounting Data (Consolidated Statements) | Indicator | Current Reporting Period (Jan-Jun) (RMB) | Prior Year Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 556,922,772.00 | 553,724,423.60 | 0.58 | | Total Profit | 55,855,116.95 | 107,124,688.03 | -47.86 | | Net Profit Attributable to Shareholders of the Listed Company | 50,349,314.66 | 95,293,679.96 | -47.16 | | Net Cash Flow from Operating Activities | 89,433,355.75 | 80,519,157.98 | 11.07 | | Period-End Data: | | | | | Net Assets Attributable to Shareholders of the Listed Company | 1,695,260,134.23 | 1,707,180,400.78 | -0.70 | | Total Assets | 2,121,672,797.66 | 1,951,340,242.04 | 8.73 | 2025 H1 Key Financial Indicators | Key Financial Indicators | Current Reporting Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.23 | 0.43 | -46.51 | | Diluted Earnings Per Share (RMB/share) | 0.23 | 0.43 | -46.51 | | Basic Earnings Per Share After Deducting Non-recurring Gains and Losses (RMB/share) | 0.27 | 0.42 | -35.71 | | Weighted Average Return on Net Assets (%) | 2.91 | 5.67 | Decrease of 2.76 percentage points | - Net profit attributable to shareholders of the listed company decreased by 47.16% year-on-year, primarily due to the impact of US tariff policies and domestic medical procurement policies leading to lower product prices and reduced gross profit; investment losses from the disposal of equity originally accounted for under the equity method after acquiring Jindongsheng; reduced exchange gains due to USD exchange rate fluctuations; and decreased interest income, among other factors[22] - The company implemented annual profit distribution and capital reserve to share capital increase plans in July 2024 and June 2025, both involving a 4-for-10 share transfer, with prior year's EPS adjusted based on the increased total share capital[23] IX. Non-recurring Gains and Losses Items and Amounts This section lists the company's non-recurring gains and losses items and their amounts for the first half of 2025, totaling a negative 9.41 million RMB, mainly influenced by gains from the acquisition of a subsidiary where investment cost was less than the fair value of identifiable net assets 2025 H1 Non-recurring Gains and Losses Items and Amounts | Non-recurring Gains and Losses Items | Amount (RMB) | | :--- | :--- | | Gains and losses from disposal of non-current assets | 225,096.57 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and from disposal of financial assets and liabilities | 1,498,232.02 | | Gains from investment cost of acquiring subsidiaries, associates, and joint ventures being less than the fair value of identifiable net assets of the investee at acquisition | -10,429,724.75 | | Other non-operating income and expenses | -232,562.20 | | Less: Income tax impact | 468,068.33 | | Total | -9,407,026.69 | X. Companies with Equity Incentive or Employee Stock Ownership Plans May Choose to Disclose Net Profit After Deducting Share-based Payment Impact This section discloses the company's net profit after deducting the impact of share-based payments, showing a year-on-year decrease of 45.40% Net Profit After Deducting Share-based Payment Impact | Indicator | Current Reporting Period (Jan-Jun) (RMB) | Prior Year Period (RMB) | Current Period vs. Prior Year Period Change (%) | | :--- | :--- | :--- | :--- | | Net Profit After Deducting Share-based Payment Impact | 52,830,695.66 | 96,761,057.60 | -45.40 | Section III Management Discussion and Analysis This section provides a comprehensive analysis of the company's industry, business operations, core competitiveness, and key financial performance during the reporting period I. Explanation of the Company's Industry and Main Business During the Reporting Period This section deeply analyzes the overall development trend, cyclicality, regionality, and seasonality of the medical device industry in which the company operates, and elaborates on the company's position within the industry - The company's main business is the R&D, production, and sales of disposable medical consumables, belonging to the medical consumables sub-sector within the medical device industry[31] - The global medical device market continues to grow, reaching 562.6 billion USD in 2024 and projected to reach 886.8 billion USD by 2032, with a compound annual growth rate exceeding 6%[34] - The medical consumables industry does not exhibit significant cyclicality or prominent seasonality, but experiences some fluctuations due to holidays and peak winter disease periods[35][36] - The company has become one of the largest domestic manufacturers of disposable medical consumables with a comprehensive product range, further solidifying its market position through technological innovation, quality control, and channel advantages[38] II. Discussion and Analysis of Operating Conditions This section elaborates on the company's overall operating performance for the first half of 2025, including operating revenue, net profit, and asset-liability status, and reiterates the company's business positioning, product types, and core operating models in the disposable medical consumables sector - In the first half of 2025, the company achieved operating revenue of 556.9228 million RMB, a year-on-year increase of 0.58%; net profit attributable to shareholders of the listed company was 50.3493 million RMB, a year-on-year decrease of 47.16%[40] - As of June 30, 2025, the company's total assets were 2.1217 billion RMB, total liabilities were 408.5686 million RMB, and the asset-liability ratio was 19.26%, indicating healthy financial indicators[40] - The company's main business is the R&D, production, and sales of disposable medical consumables, with products covering blood collection, medical testing, sampling, medical nursing consumables, and pharmaceutical packaging materials[41] - The company's procurement model is "procurement based on production," its production model combines "production based on sales" with inventory production, and its sales models include domestic distribution, direct sales, and international OEM/ODM[42][44][46] III. Analysis of Core Competitiveness During the Reporting Period This section comprehensively analyzes Gongdong Medical's seven core competitive advantages, including customized products, global marketing network, overseas production bases, comprehensive product lines, strict quality management, intelligent manufacturing upgrades, and brand influence, emphasizing the company's differentiated strategy and market position in the low-value medical consumables sector - Customized product advantage: By deeply aligning with customer needs, the company provides customized solutions, enhancing product added value, avoiding price wars from centralized procurement, strengthening customer stickiness, and feeding back into R&D[47][48] - Marketing network advantage: Established a nationwide domestic sales network and an international market spanning over 100 countries and regions, building long-term partnerships with renowned international clients like McKesson and IDEXX, and operating a subsidiary in the United States[49] - Overseas production base: Acquired US company TPI, strengthening localized service capabilities in European and American markets, addressing global trade policy uncertainties, and improving supply chain efficiency and market responsiveness[50] - Comprehensive product advantage: Formed a complete product system for disposable medical consumables covering clinical diagnosis, nursing, scientific research testing, and pharmaceutical packaging[52] - Quality management advantage: Strictly adheres to ISO13485 quality management system and domestic and international regulatory standards, implementing stringent quality control across R&D, production, inspection, and sales[53] - Intelligent manufacturing upgrade advantage: Actively introduced AI-driven automated production lines, enhancing product quality and production efficiency through machine vision technology, and optimizing supply chain management with AI algorithms[54] - Brand advantage: Built a dual-dimensional brand advantage of "high-end manufacturing + customized services" in the low-value medical consumables sector, achieving full chain control from "raw materials to finished products," and developing specialized consumables for clients like BGI Intelligent Manufacturing[55] IV. Key Operating Conditions During the Reporting Period This section provides a detailed analysis of the company's key operating conditions during the reporting period, including changes in financial statement items, asset-liability status, external equity investments, and financial assets, along with operating data for major holding and participating companies Financial Statement Related Item Variation Analysis | Item | Current Period Amount (10,000 RMB) | Prior Year Period Amount (10,000 RMB) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 55,692.28 | 55,372.44 | 0.58 | Primarily due to the consolidation of Jindongsheng. | | Operating Cost | 38,256.54 | 36,978.98 | 3.45 | Primarily due to the consolidation of Jindongsheng. | | Selling Expenses | 2,607.27 | 2,402.61 | 8.52 | Primarily due to the consolidation of Jindongsheng's selling expenses of 161.11 (10,000 RMB). | | Administrative Expenses | 5,225.51 | 4,144.49 | 26.08 | Primarily due to an increase in salaries of 492.21 (10,000 RMB) and an increase in intermediary services of 582.21 (10,000 RMB). | | Financial Expenses | -150.32 | -1,400.48 | Not applicable | Primarily due to a decrease in interest income of 584.06 (10,000 RMB) and a year-on-year decrease in exchange gains of 371.52 (10,000 RMB), among other factors. | | R&D Expenses | 2,511.94 | 2,367.56 | 6.10 | Primarily due to increased investment in R&D products. | | Net Cash Flow from Operating Activities | 8,943.34 | 8,051.92 | 11.07 | Primarily due to an additional 700 (10,000 RMB) in export tax rebates, among other factors. | | Net Cash Flow from Investing Activities | 7,727.90 | 1,160.90 | 565.68 | Primarily due to a year-on-year increase of 9,102.44 (10,000 RMB) in recovered wealth management products and payment of 1,897.91 (10,000 RMB) for Jindongsheng acquisition. | | Net Cash Flow from Financing Activities | 12,826.36 | -376.87 | Not applicable | Primarily due to new bank borrowings of 179 million RMB. | Asset and Liability Status Changes | Item Name | Current Period End Amount (RMB) | Current Period End % of Total Assets | Prior Year End Amount (RMB) | Prior Year End % of Total Assets | Current Period End vs. Prior Year End Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 597,037,727.23 | 28.14 | 303,188,874.77 | 15.54 | 96.92 | Primarily due to the recovery of 141 million RMB in wealth management products from the previous year and new bank borrowings of 179 million RMB, among other factors. | | Accounts Receivable | 316,080,497.89 | 14.90 | 260,245,221.85 | 13.34 | 21.45 | Primarily due to the consolidation of Jindongsheng during the reporting period. | | Long-term Equity Investment | 0.00 | 0.00 | 47,779,724.75 | 2.45 | -100.00 | Primarily due to the consolidation of Jindongsheng during the reporting period. | | Construction in Progress | 50,646,915.87 | 2.39 | 29,480,713.93 | 1.51 | 71.80 | Primarily due to new medical construction projects during the reporting period. | | Short-term Borrowings | 179,417,297.89 | 8.46 | 0.00 | 0.00 | Not applicable | Primarily due to new bank borrowings of 179 million RMB. | | Employee Compensation Payable | 34,995,146.59 | 1.65 | 53,123,320.52 | 2.72 | -34.12 | Primarily due to the distribution of last year's annual bonus in the current year. | - Overseas assets totaled 521.1042 million RMB, accounting for 24.56% of total assets[63] - The company acquired 55% equity in Jindongsheng for 45.65 million RMB, making Jindongsheng a wholly-owned subsidiary with 100% ownership upon completion[64][67] Major Holding and Participating Company Information | Company Name | Company Type | Main Business | Registered Capital | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Maide Mold | Subsidiary | Medical mold manufacturing, import and export trade | 10,000,000.00 | 29,137,853.32 | 12,717,302.22 | 14,828,504.22 | 1,369,629.60 | 1,282,721.64 | | TPI | Subsidiary | Medical device manufacturing and sales | 100,000 USD | 521,104,231.34 | 436,521,253.45 | 132,036,536.55 | -6,576,168.97 | -4,420,550.52 | | Zhengzhou Gongdong | Subsidiary | R&D, production, and sales of consumables | 60,000,000.00 | 59,312,696.36 | 59,480,318.12 | - | -89,940.13 | -89,940.13 | | Jindongsheng | Subsidiary | Medical product sales | 10,000,000.00 | 97,566,880.42 | 81,863,300.30 | 25,577,235.13 | 2,992,326.69 | 2,153,545.88 | - During the reporting period, the company deregistered Shanghai Gongdong, established Gongdong Thailand, and acquired Jindongsheng through a non-same-control acquisition, with Jindongsheng's consolidation impacting net profit by 2,153,545.88 RMB[72] V. Other Disclosures This section details significant risks the company may face, including changes in industry laws and regulations, "centralized procurement" policies, product quality control, raw material price fluctuations, global trade policies, and exchange rate volatility, advising investors to pay attention - Risks from changes in industry laws, regulations, and policies: Deepening healthcare system reforms, changes in industry standards, bidding, pricing mechanisms, and distribution systems may adversely affect the company's production and operations[74] - Risks from the implementation of "centralized procurement" (volume-based procurement): Centralized procurement policies will significantly compress corporate gross margins, accelerate industry consolidation, potentially leading to the exit of smaller manufacturers; the scope of centralized procurement may expand to other low-value consumables, coupled with DRG payment reforms, further squeezing revenue growth; long-term reliance on policies may weaken corporate innovation incentives[74][75] - Product quality control risks: The quality of medical consumables directly impacts medical safety, and despite strict regulation, unforeseen factors could lead to quality issues, affecting market reputation and continuous operational capability[75] - Raw material price fluctuation risks: Direct materials account for approximately 55% of the main business cost, and major raw materials are highly influenced by commodity prices like oil; if prices rise significantly and costs cannot be passed on in a timely manner, it may adversely affect operating performance[75] - Global trade policy risks: Imposed overseas tariffs may compress gross margins or lead to sales declines; terminal consumers bearing tariffs may suppress purchasing power; accelerating overseas capacity expansion involves increased initial capital expenditures[77] - Exchange rate fluctuation risks: Overseas sales revenue accounts for 61.47% of operating revenue, primarily settled in USD, so fluctuations in the RMB to USD exchange rate will affect product export sales prices and exchange gains/losses, impacting the company's performance[77] Section IV Corporate Governance, Environment, and Society This section covers changes in the company's governance structure, including personnel adjustments, profit distribution plans, and employee incentive measures I. Changes in Company Directors, Supervisors, and Senior Management This section discloses changes in the company's directors, supervisors, and senior management, noting the appointment of a new Deputy General Manager during the reporting period - The company appointed Mr. Zhu Yong as Deputy General Manager on February 20, 2025[80] II. Profit Distribution or Capital Reserve to Share Capital Increase Plan This section states that the company has no profit distribution or capital reserve to share capital increase plan for the current reporting period - There is no profit distribution or capital reserve to share capital increase plan for the current reporting period[81] III. Company Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures and Their Impact This section updates the progress of the company's first employee stock ownership plan, including the approval of relevant proposals by the holders' meeting and the completion of stock transfer - The company's first employee stock ownership plan completed the non-trading transfer of 957,600 shares of company stock to the employee stock ownership plan account on April 3, 2025[82] Section V Important Matters This section details significant events and commitments, including the fulfillment of commitments and major related-party transactions I. Fulfillment of Commitments This section details the fulfillment of various commitments by the company's actual controllers, shareholders, related parties, and the company itself, including share lock-ups, avoidance of horizontal competition, reduction and standardization of related-party transactions, and prospectus authenticity, all of which were strictly adhered to - The company's directors, supervisors, senior management, controlling shareholders, actual controllers, and Jinchi Investment have all strictly fulfilled their commitments regarding share lock-ups, avoidance of horizontal competition, reduction and standardization of related-party transactions, and the authenticity of the prospectus[86][87][88][89][90][91][92][93][94][95][96][97][98][99][100][101][102][103] X. Major Related-Party Transactions This section discloses the company's related-party transactions involving the sale of goods with Zhejiang Hengda - The company has related-party transactions with Zhejiang Hengda for the sale of medical consumables, with sales amounting to 2,042,254.10 RMB in the current period, accounting for 0.37% of similar transactions[106] Section VI Share Changes and Shareholder Information This section details the company's share capital changes and shareholder structure, including the total number of shares and the top ten shareholders I. Share Capital Changes This section details the company's share capital changes during the reporting period, primarily due to the implementation of the 2024 annual profit distribution and capital reserve to share capital increase plan, which resulted in an increase in total share capital Share Capital Changes | Share Class | Quantity Before Change (shares) | Capital Reserve to Share Capital (shares) | Quantity After Change (shares) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Unlimited Sale Condition Shares | 157,578,415 | 62,914,534 | 220,492,949 | 100 | | Total Shares | 157,578,415 | 62,914,534 | 220,492,949 | 100 | - Share capital changes were primarily due to the company's implementation of the 2024 annual profit distribution and capital reserve to share capital increase plan, which involved a 0.4-for-10 share transfer, increasing the total share capital from 157,578,415 shares to 220,492,949 shares[113] II. Shareholder Information This section lists the total number of shareholders and the shareholding situation of the top ten shareholders as of the end of the reporting period, and explains the related-party relationships and concerted action among major shareholders - Total number of common shareholders at the end of the reporting period: 9,870 households[114] Top Ten Shareholders' Shareholding | Shareholder Name | Shares Held at Period End (shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Shi Huiyong | 110,836,040 | 50.27 | Domestic Natural Person | | Shi Yibei | 16,464,000 | 7.47 | Domestic Natural Person | | Taizhou Jinchi Investment Management Partnership (Limited Partnership) | 14,258,009 | 6.47 | Other | | Shi Heyun | 4,939,200 | 2.24 | Domestic Natural Person | | Shi Meihua | 4,939,200 | 2.24 | Domestic Natural Person | | Shi Hefang | 4,939,200 | 2.24 | Domestic Natural Person | | Guotai Jiate Stock Special Pension Product - China Merchants Bank Co., Ltd. | 2,085,510 | 0.95 | Other | | Lian Zhongming | 1,833,143 | 0.83 | Domestic Natural Person | | Zhejiang Gongdong Medical Technology Co., Ltd. - First Employee Stock Ownership Plan | 1,340,640 | 0.61 | Other | | Guotai Fund Management Co., Ltd. - Social Security Fund 2103 Portfolio | 1,339,044 | 0.61 | Other | - Shi Huiyong and Shi Yibei are father-daughter; Shi Huiyong, Shi Heyun, Shi Hefang, and Shi Meihua are siblings; Shi Huiyong is the general partner and executive partner of Jinchi Investment; Shi Huiyong, Shi Yibei, and Jinchi Investment are parties acting in concert[117] Section VII Bond-Related Information This section confirms that the company has no outstanding corporate bonds or convertible bonds during the reporting period I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments This section states that the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments during the reporting period - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[121] II. Convertible Corporate Bonds This section states that the company had no convertible corporate bonds during the reporting period - The company has no convertible corporate bonds[121] Section VIII Financial Report This section presents the company's unaudited 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 financial statement items I. Audit Report This section states that this semi-annual report has not been audited - This semi-annual report has not been audited[5] II. Financial Statements This section provides the company's consolidated and parent company balance sheets as of June 30, 2025, consolidated and parent company income statements for January-June 2025, consolidated and parent company cash flow statements, and consolidated and parent company statements of changes in owners' equity, comprehensively presenting the company's financial position at the end of the reporting period and its operating results and cash flow during the reporting period Consolidated Balance Sheet Key Data (June 30, 2025) | Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | | :--- | :--- | :--- | | Monetary Funds | 597,037,727.23 | 303,188,874.77 | | Trading Financial Assets | 312,741.55 | 140,467,617.15 | | Accounts Receivable | 316,080,497.89 | 260,245,221.85 | | Inventories | 143,844,075.26 | 144,326,479.45 | | Total Current Assets | 1,089,772,089.29 | 865,266,163.55 | | Fixed Assets | 575,415,122.33 | 596,237,985.75 | | Construction in Progress | 50,646,915.87 | 29,480,713.93 | | Goodwill | 202,435,233.96 | 200,405,574.68 | | Total Assets | 2,121,672,797.66 | 1,951,340,242.04 | | Short-term Borrowings | 179,417,297.89 | 0.00 | | Accounts Payable | 80,237,668.69 | 69,979,336.01 | | Total Current Liabilities | 369,709,016.44 | 182,854,626.05 | | Total Liabilities | 408,568,568.00 | 233,788,763.79 | | Total Equity Attributable to Parent Company Shareholders | 1,695,260,134.23 | 1,707,180,400.78 | Consolidated Income Statement Key Data (Jan-Jun 2025) | Item | 2025 Half-Year (RMB) | 2024 Half-Year (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 556,922,772.00 | 553,724,423.60 | | Total Operating Costs | 489,596,811.21 | 449,296,008.47 | | Operating Profit | 56,087,679.15 | 107,115,951.34 | | Total Profit | 55,855,116.95 | 107,124,688.03 | | Net Profit | 50,322,332.62 | 95,293,679.96 | | Net Profit Attributable to Parent Company Shareholders | 50,349,314.66 | 95,293,679.96 | | Basic Earnings Per Share (RMB/share) | 0.23 | 0.43 | Consolidated Cash Flow Statement Key Data (Jan-Jun 2025) | Item | 2025 Half-Year (RMB) | 2024 Half-Year (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 89,433,355.75 | 80,519,157.98 | | Net Cash Flow from Investing Activities | 77,278,977.22 | 11,609,014.06 | | Net Cash Flow from Financing Activities | 128,263,616.53 | -3,768,694.61 | | Net Increase in Cash and Cash Equivalents | 293,848,852.46 | 92,443,387.03 | | Cash and Cash Equivalents at Period End | 597,037,727.23 | 490,119,954.21 | III. Company Basic Information This section provides an overview of the company, including its establishment date, registration information, stock listing status, and main business activities - The company's predecessor, Zhejiang Gongdong Medical Technology Co., Ltd., was registered on August 17, 2009, restructured into a joint-stock company on October 26, 2017, and listed on the Shanghai Stock Exchange on September 16, 2020[152] - The company's main business activities include the production of Class III medical devices, operation of Class III medical devices, production of Class II medical devices, production of sanitary products and disposable medical supplies, and production of plastic packaging containers and tools for food use[153] IV. Basis for Preparation of Financial Statements This section explains the basis for preparing the company's financial statements, emphasizing the going concern assumption and the absence of significant doubts about its ability to continue as a going concern - The company's financial statements are prepared on a going concern basis[154] - There are no matters or circumstances that would cause significant doubt about the company's ability to continue as a going concern for the 12 months from the end of the reporting period[155] V. 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 specific treatment methods for business combinations, consolidated financial statements, financial instrument classification and measurement, impairment of receivables, inventory valuation, fixed asset depreciation, intangible asset amortization, employee compensation, revenue recognition, and government grants, and discloses changes in accounting policies for the current period - The company's accounting year runs from January 1 to December 31 of the Gregorian calendar, with the functional currency being RMB, while the TPI subsidiary's functional currency is USD[157][159] - The company classifies financial assets into three categories: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[169] - Expected credit losses for accounts receivable and contract assets are measured using a portfolio approach, with expected credit loss rates determined based on aging[179] - Inventory issuance uses the weighted average method at month-end, and the inventory system is perpetual inventory[194] - Fixed asset depreciation uses the straight-line method, with depreciation periods of 10-20 years for buildings and structures and 5-10 years for specialized equipment[209] - Intangible assets include land use rights, office software, patent license rights, and proprietary technology, amortized using the straight-line method[215] - R&D expenditures are categorized into personnel costs, direct input costs, depreciation costs, intangible asset amortization costs, and other costs; research phase expenditures are expensed in the current period, while development phase expenditures meeting criteria are recognized as intangible assets[216][217][218] - Revenue recognition principles involve identifying distinct performance obligations, determining whether they are satisfied over time or at a point in time, and measuring revenue at the transaction price; the company recognizes product sales revenue when customers obtain control of the goods[232][233][234] - Effective January 1, 2024, the company implemented the Ministry of Finance's "Interpretation No. 17 of Accounting Standards for Business Enterprises" regarding the classification of current and non-current liabilities, disclosure of supplier financing arrangements, and accounting treatment of sale-leaseback transactions, and effective December 6, 2024, implemented "Interpretation No. 18 of Accounting Standards for Business Enterprises" regarding the accounting treatment of guarantee-type quality assurances not constituting a single performance obligation, with zero impact on financial statement items[247][249] VI. Taxes This section details the company's main tax categories and rates, including VAT, property tax, urban maintenance and construction tax, education surcharge, local education surcharge, and corporate income tax, and discloses the corporate income tax preferential policies enjoyed by high-tech enterprises and small low-profit enterprises Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales of goods and taxable services income | Domestic sales 13%, 9%, 6%; Export tax rebate rate 13% | | Property Tax | Original value of property less 30% / Rental income | 1.2%, 12% | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 7% | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2% | | Corporate Income Tax | Taxable income | 15%, 20%, 25%, 29.84% | - Gongdong Medical, as a high-tech enterprise, enjoys a preferential corporate income tax rate of 15% from January 1, 2024, to December 31, 2026[250] - Maide Mold and Zhengzhou Gongdong, as small low-profit enterprises, have their 2024 taxable income reduced by 25% and pay corporate income tax at a rate of 20%[250] - The company enjoys a 5% VAT super deduction policy for advanced manufacturing enterprises from January 1, 2023, to December 31, 2027[250] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes for each asset, liability, owner's equity, income, cost, and expense item in the consolidated financial statements, including period-end balances, period-beginning balances, current period changes, and reasons for changes, offering specific data support for understanding the company's financial position and operating results - Monetary funds balance at period-end was 597.0377 million RMB, a 96.92% increase from the beginning of the period, mainly due to the recovery of wealth management products and new bank borrowings[252][61] - Trading financial assets balance at period-end was 312,741.55 RMB, a significant decrease from the beginning of the period, primarily due to the redemption of bank wealth management products[254][59] - Accounts receivable balance at period-end was 316.0805 million RMB, a 21.45% increase from the beginning of the period, mainly due to the consolidation of Jindongsheng[270][61] - Short-term borrowings balance at period-end was 179.4173 million RMB, compared to 0 RMB at the beginning of the period, mainly due to new bank borrowings of 179 million RMB[345][61] Operating Revenue and Operating Cost | Item | Current Period Amount (RMB) | Cost (RMB) | Prior Period Amount (RMB) | Cost (RMB) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 542,307,735.15 | 374,929,544.88 | 548,285,554.31 | 368,273,419.85 | | Other Business | 14,615,036.85 | 7,635,862.97 | 5,438,869.29 | 1,516,369.65 | | Total | 556,922,772.00 | 382,565,407.85 | 553,724,423.60 | 369,789,789.50 | - Financial expenses for the current period were -1,503,180.91 RMB, compared to -14,004,828.80 RMB in the prior period, mainly due to decreased interest income and reduced exchange gains[393][59] - Net cash flow from investing activities for the current period was 77.2790 million RMB, a significant increase of 565.68% from the prior period, mainly due to increased recovery of wealth management products and payment for the Jindongsheng acquisition[140][59] - Net cash flow from financing activities for the current period was 128.2636 million RMB, compared to -3,768,694.61 RMB in the prior period, mainly due to new bank borrowings of 179 million RMB[140][59] VIII. R&D Expenditures This section lists the company's R&D expenditures during the reporting period, all of which were expensed in the current period, primarily including employee compensation, material expenditures, depreciation, and restricted stock incentive expenses 2025 H1 R&D Expense Composition | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Employee Compensation | 13,289,679.53 | 13,587,434.24 | | Material Expenditures | 9,260,808.76 | 7,928,768.81 | | Depreciation Expenditures | 1,430,845.12 | 1,677,748.95 | | Restricted Stock Incentive Expenses | 977,419.50 | 343,845.00 | | Other | 160,647.39 | 137,805.46 | | Total | 25,119,400.30 | 23,675,602.46 | - All R&D expenditures for the current period were expensed, with no capitalized R&D expenditures[424] IX. Changes in Consolidation Scope This section discloses changes in the company's consolidation scope during the reporting period, primarily including the acquisition of control over Jindongsheng through a non-same-control business combination, as well as the deregistration of Shanghai Gongdong and the establishment of Gongdong Thailand subsidiary - On May 1, 2025, the company acquired 100% equity in Jindongsheng for 93.4297 million RMB through cash payment; Jindongsheng has been included in the consolidation scope since the acquisition date, contributing revenue of 25.5772 million RMB and net profit of 2.1535 million RMB[425] - The consolidation cost includes goodwill of 3,290,245.58 RMB[427] - The company deregistered Shanghai Gongdong and established Gongdong Thailand, with no significant impact on overall production, operations, or performance[435] X. Equity in Other Entities This section lists the composition of the company's enterprise group, including the names, operating locations, registered capital, business nature, shareholding percentages, and acquisition methods of major subsidiaries, clarifying the company's control over these subsidiaries Enterprise Group Composition | Subsidiary Name | Main Operating Location | Registered Capital | Business Nature | Shareholding Percentage (%) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | | Maide Mold | Taizhou, Zhejiang | 10,000,000.00 RMB | Medical mold manufacturing | 100 (Direct) | Acquired under common control | | TPI | USA | 100,000 USD | Medical device manufacturing and sales | 100 (Direct) | Established | | Zhengzhou Gongdong | Zhengzhou | 60,000,000.00 RMB | Consumables manufacturing and sales | 70 (Direct) | Established | | Jindongsheng | Xinjiang | 10,000,000.00 RMB | Medical product sales | 100 (Direct) | Acquired through non-common control business combination | | Gongdong Thailand | Thailand | 50,000,000 THB | Manufacturing and sales of medical devices, medical and sanitary products, packaging containers, plastic products, and molds | 100 (Direct) | Established | XI. Government Grants This section discloses the company's government grant liability items and government grants recognized in profit or loss during the reporting period, primarily related to asset-related and income-related government grants Liability Items Involving Government Grants | Financial Statement Item | Period-Beginning Balance (RMB) | Current Period Decrease (RMB) | Period-End Balance (RMB) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 6,578,843.67 | 476,481.90 | 6,102,361.77 | Asset-related | Government Grants Recognized in Current Period Profit or Loss | Type | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Asset-related | 485,183.08 | 438,141.90 | | Income-related | 2,021,467.80 | 1,478,989.66 | | Total | 2,506,650.88 | 1,917,131.56 | XII. Risks Related to Financial Instruments This section details the credit risk, liquidity risk, and market risk (including interest rate risk and foreign exchange risk) faced by the company in its daily activities, and explains the strategies and measures taken to manage these risks - Credit risk: Primarily arises from monetary funds and accounts receivable; the company controls risk by depositing monetary funds in financial institutions with high credit ratings and regularly assessing customer credit and monitoring accounts receivable balances[445] - Credit risk concentration: As of June 30, 2025, 20.96% of the company's accounts receivable originated from its top five customers[446] - Liquidity risk: The company manages liquidity risk by comprehensively utilizing various financing methods such as bill settlement and bank borrowings, and by appropriately combining long-term and short-term financing to maintain financing continuity and flexibility[446] - Market risk: Primarily includes interest rate risk and foreign exchange risk; the company manages interest rate risk by determining the proportion of fixed-rate and floating-rate financial instruments, and manages foreign exchange risk by buying and selling foreign currencies when necessary[448] - Transfer of financial assets: In the current period, the company derecognized 49,749,905.23 RMB in financial assets through discounting and endorsement transfer, as substantially all risks and rewards were transferred[450][452] XIII. Disclosure of Fair Value This section discloses the fair value of the company's assets and liabilities measured at fair value at the end of the period, and explains the valuation techniques and significant parameters used for Level 2 and Level 3 fair value measurements Period-End Fair Value of Assets and Liabilities Measured at Fair Value | Item | Level 1 Fair Value Measurement (RMB) | Level 2 Fair Value Measurement (RMB) | Level 3 Fair Value Measurement (RMB) | Total (RMB) | | :--- | :--- | :--- | :--- | :--- | | Total Assets Continuously Measured at Fair Value | - | 312,741.55 | 6,317,443.84 | 6,630,185.39 | | Trading Financial Assets (Wealth Management Products) | - | 312,741.55 | - | 312,741.55 | | Accounts Receivable Financing | - | - | 6,317,443.84 | 6,317,443.84 | | Total Liabilities Continuously Measured at Fair Value | - | 253,125.00 | - | 253,125.00 | | Trading Financial Liabilities (Derivative Financial Liabilities) | - | 253,125.00 | - | 253,125.00 | - Level 2 fair value measurements primarily apply to forward foreign exchange contracts and wealth management products, determined using the present value of forward foreign exchange rates and account balances[457] - Level 3 fair value measurements primarily apply to bank acceptance bills receivable, with fair value determined by the face amount of the bills[458] XIV. Related Parties and Related-Party Transactions This section discloses the company's subsidiaries, other related parties (such as Zhejiang Hengda), and related-party transactions during the reporting period, primarily involving the sale of goods to Zhejiang Hengda, and lists the period-end balances of receivables from related parties - Information on the company's subsidiaries can be found in Section VIII "Financial Report," Sub-section X "Equity in Other Entities," Item 1 "Equity in Subsidiaries" of this report[459] - Zhejiang Hengda is a company controlled by the actual controller Shi Huiyong's cousin[459] Related-Party Transaction Information | Related Party | Related-Party Transaction Content | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | :--- | | Zhejiang Hengda | Sales of goods | 2,042,254.10 | 3,060,134.60 | - Key management personnel compensation: Current period amount 2.0203 million RMB, prior period amount 2.3218 million RMB[464] Receivables from Related Parties | Item Name | Related Party | Period-End Book Balance (RMB) | Provision for Bad Debts (RMB) | | :--- | :--- | :--- | :--- | | Accounts Receivable | Zhejiang Hengda | 1,934,657.30 | 96,732.87 | XV. Share-based Payment This section discloses the details of equity instruments granted under the company's equity incentive plan during the reporting period, including categories of grantees, quantities, and amounts, as well as the exercise price range and remaining contractual term of outstanding equity instruments (employee stock ownership plan) at period-end, and explains equity-settled share-based payment expenses Equity Instruments Granted in Current Period | Category of Grantees | Quantity Granted in Current Period (shares) | Amount (RMB) | | :--- | :--- | :--- | | Management Personnel | 212,000.00 | 2,929,840.00 | | R&D Personnel | 377,200.00 | 5,212,904.00 | | Sales Personnel | 353,000.00 | 4,878,460.00 | | Production Personnel | 15,400.00 | 212,828.00 | | Total | 957,600.00 | 13,234,032.00 | - The exercise price for the outstanding employee stock ownership plan at period-end is 15.28 RMB/share, with a remaining contractual term of 24 months[470] - The cumulative amount of equity-settled share-based payments recognized in capital reserves is 2,481,381.00 RMB[471] Current Period Share-based Payment Expenses | Category of Grantees | Equity-Settled Share-based Payment Expenses (RMB) | | :--- | :--- | | Management Personnel | 549,345.00 | | R&D Personnel | 977,419.50 | | Sales Personnel | 914,711.25 | | Production Personnel | 39,905.25 | | Total | 2,481,381.00 | XVI. Commitments and Contingencies This section states that the company has no significant commitments or contingencies requiring disclosure at the balance sheet date - The company has no significant commitments[473] - The company has no significant contingencies requiring disclosure[473] XVIII. Other Significant Matters This section primarily discloses the company's segment information, categorized by geographical segments (domestic and overseas), including operating revenue, operating costs, total assets, and total liabilities, to reflect the operating performance and financial status of different geographical regions - The company determines its reportable segments based on geographical segments, with operating revenue and operating costs allocated by the final sales location, and assets and liabilities allocated by the operating entity's location[474] Financial Information of Reportable Segments | Item | Domestic Segment (RMB) | Overseas Segment (RMB) | Inter-segment Eliminations (RMB) | Total (RMB) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 465,899,950.95 | 132,036,536.55 | 41,013,715.50 | 556,922,772.00 | | Operating Cost | 315,832,075.06 | 107,937,987.14 | 41,204,654.35 | 382,565,407.85 | | Total Assets | 2,200,266,524.80 | 521,104,231.34 | 599,697,958.48 | 2,121,672,797.66 | | Total Liabilities | 373,099,472.47 | 84,582,977.89 | 49,113,882.36 | 408,568,568.00 | XIX. Notes to Parent Company Financial Statement Major Items This section provides detailed notes for major items in the parent company's financial statements, including accounts receivable, other receivables, long-term equity investments, operating revenue and costs, and investment income, reflecting the parent company's financial performance - Parent company accounts receivable balance at period-end: 226.4270 million RMB, a decrease from 249.1271 million RMB at the beginning of the period[481] - Parent company long-term equity investment balance at period-end: 553.6427 million RMB, an increase from 490.4927 million RMB at the beginning of the period, mainly due to increased investments in subsidiaries Zhengzhou Gongdong and Jindongsheng[502][505] Parent Company Operating Revenue and Operating Cost (Jan-Jun 2025) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Operating Revenue | 425,494,211.60 | 439,979,078.77 | | Operating Cost | 283,467,531.07 | 292,533,361.23 | - Parent company investment income (Jan-Jun 2025): 590,775.00 RMB, compared to 3,949,592.11 RMB in the prior period, mainly from the disposal of trading financial assets[515] XX. Supplementary Information This section provides supplementary financial report information, including a detailed statement of non-recurring gains and losses for the current period and calculations of return on net assets and earnings per share, further detailing the company's financial performance - Detailed statement of non-recurring gains and losses for the current period: Totaled -9.4070 million RMB, mainly influenced by gains from the acquisition of a subsidiary where investment cost was less than the fair value of identifiable net assets[514][516] Return on Net Assets and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Earnings Per Share (RMB/share) | | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders of the Company | 2.91 | 0.23 | | Net Profit Attributable to Common Shareholders of the Company After Deducting Non-recurring Gains and Losses | 3.45 | 0.27 |