民生健康(301507) - 2025 Q2 - 季度财报

Part I Important Notice, Table of Contents, and Definitions This section provides crucial disclaimers, outlines the report's structure, lists reference documents, and defines key terms for clarity Important Notice The company's board and senior management assure the report's accuracy, while forward-looking statements carry uncertainties; the company faces risks including product concentration and policy changes, and plans no interim dividend distribution - The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no false records, misleading statements, or major omissions[5] - Forward-looking statements regarding development strategies and future plans involve uncertainties and do not constitute substantive commitments to investors[6] - Key risks include product concentration, distributor management, industry policy changes, new product/business/model/project uncertainties, and risks associated with fundraising investment projects[6] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[7] Table of Contents This section lists the eight main chapters of the semi-annual report and their corresponding page numbers, providing investors with an overview of the report's overall structure - The report contains eight main chapters, covering important notices, company profile, management discussion and analysis, corporate governance, significant matters, share changes, bond information, and financial reports[10] Reference Documents Catalog This section specifies the types and location of the company's reference documents, including signed and sealed financial statements, original drafts of publicly disclosed documents, and other relevant materials, all available for inspection at the company's securities department - Reference documents include financial statements signed and sealed by the company's负责人, chief accountant, and head of accounting department, original copies of all company documents publicly disclosed during the reporting period, and other relevant materials[12] - These reference documents are available at the company's securities department[12] Definitions This section provides definitions for common terms used in the report, covering company and related party names, financial units, reporting period, and specialized terms related to pharmaceuticals and health products, ensuring clear understanding of the report's content - In the report, "Company", "the Company", and "Minsheng Health" all refer to Hangzhou Minsheng Health Pharmaceutical Co, Ltd[14] - "Reporting Period" refers to January 1, 2025, to June 30, 2025[14] - Professional terms such as "OTC drugs", "vitamins", "minerals", and "probiotics" are clearly defined[14] Part II Company Profile and Key Financial Indicators This section presents the company's fundamental information, contact details, and a comprehensive overview of key financial performance metrics and non-recurring items for the reporting period I. Company Profile This section provides the company's basic information, including stock abbreviation, code, listing exchange, Chinese name, and legal representative, clarifying the company's identity and market positioning - The company's stock abbreviation is "Minsheng Health", stock code "301507", listed on the Shenzhen Stock Exchange[16] - The company's Chinese name is Hangzhou Minsheng Health Pharmaceutical Co, Ltd, and its legal representative is Zhang Haijun[16] II. Contact Person and Contact Information This section lists the names, contact addresses, telephone numbers, fax numbers, and email addresses of the company's Board Secretary and Securities Affairs Representative, facilitating communication and information inquiries for investors - The Board Secretary is Chen Wenzhu, and the Securities Affairs Representative is Bao Weixia[17] - The contact address for both is No 658 Bin'an Road, Binjiang District, Hangzhou, telephone 0571-88211731, email msjk@mspharm.com[17] III. Other Information This section confirms that the company's registered address, office address, website, email, information disclosure and reference location, and registration status remained unchanged during the reporting period, with specific details available in the 2024 annual report - The company's registered address, office address and postal code, company website, and email address remained unchanged during the reporting period[18] - The information disclosure and reference location remained unchanged during the reporting period[19] - The company's registration status remained unchanged during the reporting period[20] IV. Key Accounting Data and Financial Indicators This section presents the company's key accounting data and financial indicators for the current reporting period compared to the same period last year, showing a 16.37% increase in operating revenue, a 6.65% increase in net profit attributable to shareholders, a significant 37.89% increase in net cash flow from operating activities, and growth in total assets and net assets attributable to shareholders Key Accounting Data and Financial Indicators (Current Period vs. Prior Period) | Indicator | Current Period (RMB) | Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 462,484,278.99 | 397,435,556.05 | 16.37% | | Net Profit Attributable to Shareholders of Listed Company | 82,405,120.58 | 77,269,374.16 | 6.65% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-recurring Gains and Losses | 79,328,679.20 | 74,557,323.13 | 6.40% | | Net Cash Flow from Operating Activities | 141,727,050.00 | 102,781,099.64 | 37.89% | | Basic Earnings Per Share (RMB/share) | 0.23 | 0.22 | 4.55% | | Diluted Earnings Per Share (RMB/share) | 0.23 | 0.22 | 4.55% | | Weighted Average Return on Net Assets | 5.25% | 5.11% | 0.14% | Key Accounting Data and Financial Indicators (End of Current Period vs. End of Prior Year) | Indicator | End of Current Period (RMB) | End of Prior Year (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 1,972,487,059.57 | 1,744,608,477.33 | 13.06% | | Net Assets Attributable to Shareholders of Listed Company | 1,578,013,390.97 | 1,530,846,241.06 | 3.08% | V. Differences in Accounting Data under Domestic and Foreign Accounting Standards This section states that during the reporting period, there were no differences in net profit and net assets between financial reports prepared under International Accounting Standards or foreign accounting standards and those prepared under Chinese Accounting Standards - During the reporting period, there were no differences in net profit and net assets between financial reports disclosed according to International Accounting Standards and those disclosed according to Chinese Accounting Standards[22] - During the reporting period, there were no differences in net profit and net assets between financial reports disclosed according to foreign accounting standards and those disclosed according to Chinese Accounting Standards[23] VI. Non-recurring Gains and Losses Items and Amounts This section details the non-recurring gains and losses items and amounts for the reporting period, totaling RMB 3.08 million, primarily from government subsidies, wealth management product income, and personal income tax handling fee refunds, confirming that the company has not classified non-recurring items as recurring Non-recurring Gains and Losses Items and Amounts (Unit: RMB) | Item | Amount | Explanation | | :--- | :--- | :--- | | Gains/losses from disposal of non-current assets | 9,071.78 | | | Government subsidies included in current profit/loss | 1,716,124.84 | Government subsidies obtained according to relevant government policies are included in current income | | Fair value changes and disposal gains/losses from financial assets and liabilities held by non-financial enterprises, excluding effective hedge accounting related to normal business operations | 1,699,339.44 | Primarily income from wealth management products | | Other non-operating income and expenses apart from the above | 140,063.97 | | | Other profit/loss items that meet the definition of non-recurring gains/losses | 126,574.15 | Primarily personal income tax handling fee refunds during the reporting period | | Less: Income tax impact | 393,462.09 | | | Minority interest impact (after tax) | 221,270.71 | | | Total | 3,076,441.38 | | - The company has not classified non-recurring gains and losses items listed in "Interpretive Announcement No 1 on Information Disclosure by Companies Issuing Securities to the Public—Non-recurring Gains and Losses" as recurring gains and losses[26] Part III Management Discussion and Analysis This section provides an in-depth analysis of the company's business operations, core strengths, financial performance, asset and liability status, investment activities, and outlines key risks and mitigation strategies I. Main Business Activities of the Company During the Reporting Period This section details the company's position in the pharmaceutical manufacturing and dietary supplement industries, highlighting market opportunities driven by favorable policies, rising national health awareness, and changing consumer demographics. The company focuses on the big health sector, with vitamin and mineral supplements as its core, while actively expanding into OTC drugs, probiotics, and medical aesthetics, continuously enhancing market competitiveness through R&D innovation, brand building, and multi-channel sales models - The company's industry is C27 pharmaceutical manufacturing, with its flagship product, 21 Jinweita® Multivitamin Tablets (21), classified as a Class B OTC drug[28] - The company's main products are primarily used for supplementing vitamins, minerals, and probiotics, belonging to the dietary supplement industry[29] - China's probiotic market has exceeded RMB 100 billion and is growing rapidly at an annual rate of 11%-12%, with an estimated market size approaching RMB 200 billion by 2028[29] - The company focuses on the big health sector, integrating R&D, production, and sales of OTC drugs, health foods, and functional foods, positioning itself as a high-tech enterprise[35] - The company primarily employs a distribution model for sales, while also expanding its online sales channels[38][40] - During the reporting period, Varenicline Tartrate Tablets, Minoxidil Topical Solution (2%), and Minoxidil Topical Solution (5%) were approved and entered the commercialization phase[43] Company's Industry Situation The pharmaceutical manufacturing and dietary supplement markets benefit from national policy support, increased public health awareness, and segmented demands from aging and younger consumer groups. Particularly, the probiotic industry is experiencing rapid growth due to favorable policies and essential consumer demand, with its market size continuously expanding - Policies such as the "Healthy China 2030" Planning Outline provide long-term drivers for the pharmaceutical and health food industries, guiding the public to strengthen health awareness and shifting health consumption from treatment to prevention and healthcare[30] - The state highly values the probiotic sector, listing it as a national strategic emerging industry resource and a future industry, with the probiotic industry steadily moving towards high-quality development[32] - China's per capita consumption of dietary supplements is about 1/5 of that in developed countries, indicating significant room for market penetration improvement, while rising national health awareness and economic levels further expand market demand[33] - By the end of 2024, China's population aged 65 and above reached 220 million, accounting for 15.64% of the total population, entering a moderately aging society, which significantly increases demand for elderly care products[34] - Consumption trends in nutritional health foods show characteristics such as younger demographics, daily maintenance, segmented demand, and diversification, driving products towards more professional and specialized development[34] Company's Main Business Activities The company focuses on the big health sector, with vitamin and mineral supplements as its core, continuously driving R&D innovation and product iteration to build a multi-dimensional product matrix, and steadily advancing therapeutic OTC drugs and probiotic businesses. Sales primarily rely on distribution, while actively expanding online channels and large supermarkets. Subsidiary Minsheng Zhongke's probiotic business flexibly uses a combination of direct sales and distribution models, providing full-chain services - The company focuses on vitamin and mineral supplement series products as the core of its business development, continuously deepening R&D innovation to build a multi-dimensional, tiered product matrix[35] - Steadily advancing therapeutic OTC drugs, probiotics, and other business segments, comprehensively covering traditional health, trendy health, and technological health fields, and increasing brand building efforts[35] - The company primarily adopts a production model combining sales-driven production and safety stock, strictly adhering to GMP procedures to ensure product quality[37] - The company employs a distribution model and other models for sales, with the distribution model being primary, serving mainly large national pharmaceutical distributors and strong regional pharmaceutical distributors[38][39] - To enrich its sales channel system, the company collaborates with large supermarkets and operates self-managed stores on well-known e-commerce platforms such as Tmall, JD.com, Pinduoduo, Douyin, Kuaishou, and Xiaohongshu, conducting online distribution business[40] - Subsidiary Minsheng Zhongke, in line with the characteristics of its probiotic business, flexibly uses a combination of direct sales and distribution models, providing probiotic raw bacterial powder, OEM/ODM, and private label formulations[41][42] - During the reporting period, Varenicline Tartrate Tablets, Minoxidil Topical Solution (2%), and Minoxidil Topical Solution (5%) were approved and entered the commercialization phase[43] II. Core Competitiveness Analysis The company's core competitiveness lies in its rich and diverse product matrix, centered on "21 Jinweita" and expanding into OTC, probiotics, and medical aesthetics; a multi-dimensional synergistic brand system enhancing market influence; a stable and diverse marketing network achieving full online and offline channel coverage; a professional and efficient management team providing solid support for company development; and an independent and controllable core technology system, achieving significant R&D results and patent approvals in both vitamin-mineral and probiotic fields - The company's flagship product, "21 Jinweita® Multivitamin Tablets (21)", launched in 1985, pioneered the domestic vitamin and mineral industry and continues to enrich its product categories, comprehensively laying out the big health sector[44][45] - The core brand "21 Jinweita" has developed into a leading brand in the domestic vitamin and mineral sector, repeatedly ranking on the CPhI Golden Award Drug List and "CPhI Brand Gold List"[46] - The company has built a big health brand matrix including "21 Jinweita" (vitamins and minerals), "Minsheng" (professional therapeutic OTC), "Pruibao" (probiotics), and "Jisuoran" (medical aesthetics)[46] - The company has established a marketing network covering all major domestic markets, achieving full-channel product coverage through offline professional business teams and online multi-platform self-operated stores and distribution businesses[47] - The core management team possesses rich practical experience in the pharmaceutical and health industry, forming differentiated competitive advantages in key areas such as R&D innovation, supply chain management, and brand channel building[48] - The company has formed an independent and controllable core technology system in both vitamin-mineral and probiotic business areas, including multi-nutrient synergistic formulation technology and the Yanhuang strain library[50] - During the reporting period, the company and its subsidiaries obtained 3 new drug approvals (Varenicline Tartrate Tablets, Minoxidil Topical Solution 2% and 5%), 2 authorized invention patents, 1 utility model patent, and 1 health food registration certificate/filing certificate[50][51][52][53] - As of June 30, 2025, the company and its subsidiaries hold 162 authorized patents, 13 drug approvals, and 60 health food registration certificates/filing certificates[50] III. Main Business Analysis During the reporting period, the company's main business performed strongly, with both operating revenue and net profit growing, thanks to the deep implementation of the "Four New" strategy. The company continued to increase R&D investment, optimize production management, advance fundraising projects, and actively recruit talent and expand online and offline channels, with its probiotic business successfully expanding into overseas markets. Vitamin and mineral supplement series products remain the main source of income, but gross margin has decreased - During the reporting period, the company achieved operating revenue of RMB 462.48 million, a year-on-year increase of 16.37%; net profit attributable to shareholders of the listed company was RMB 82.41 million, a year-on-year increase of 6.65%[55] - In the first half of 2025, R&D expenses totaled RMB 16.27 million, accounting for 3.52% of the company's operating revenue, achieving positive progress in OTC drugs, health foods, new food ingredients, and other sectors[56] - Fundraising projects (intelligent production line technical transformation project for health foods, intelligent production line technical transformation project for vitamin and mineral OTC products) are progressing smoothly as planned[57] - The company continuously optimized human resource allocation, recruiting 3 masters and 22 undergraduates, primarily to support the medical aesthetics business unit, international business department, and R&D and marketing departments[57] - In terms of channel layout, driven by deep offline penetration and full-domain online expansion, probiotic products have gradually been exported to countries and regions such as the United States, Canada, Singapore, France, Sweden, and South Africa[58][59] Major Financial Data Year-on-Year Changes (Unit: RMB) | Indicator | Current Period | Prior Period | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 462,484,278.99 | 397,435,556.05 | 16.37% | | | Operating Cost | 211,115,711.95 | 157,255,187.25 | 34.25% | Due to changes in revenue structure during the reporting period | | Financial Expenses | -4,787,975.69 | -11,814,178.45 | 59.47% | Due to changes in fund volume and decrease in wealth management interest rates during the reporting period | | Net Cash Flow from Operating Activities | 141,727,050.00 | 102,781,099.64 | 37.89% | Due to factors such as optimized inventory management during the reporting period | | Net Cash Flow from Investing Activities | 131,631,949.10 | -149,132,870.11 | 188.26% | Due to the impact of cash recovery from matured wealth management products during the reporting period | | Net Cash Flow from Financing Activities | -101,919,355.03 | -34,756,071.22 | -193.24% | Due to an increase in acceptance bill deposits during the reporting period | Product or Service Accounting for Over 10% of Revenue (Unit: RMB) | Product Name | Operating Revenue | Operating Cost | Gross Margin (%) | YoY Change in Operating Revenue (%) | YoY Change in Operating Cost (%) | YoY Change in Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Vitamin and Mineral Supplement Series | 426,157,434.84 | 192,712,792.79 | 54.78% | 9.84% | 29.66% | -6.91% | IV. Non-Main Business Analysis This section analyzes the financial performance of the company's non-main businesses, primarily including investment income, fair value change gains/losses, asset impairment, non-operating income, and expenses. Wealth management product income is sustainable, while asset impairment and non-operating income/expenses are influenced by operational conditions and uncertain factors Non-Main Business Analysis (Unit: RMB) | Item | Amount | % of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 7,457,673.00 | 7.77% | Due to wealth management income obtained during the reporting period | Sustainable | | Fair Value Change Gains/Losses | -252,364.90 | -0.26% | Due to fair value changes of wealth management products and structured deposits during the reporting period | Sustainable | | Asset Impairment | -2,159,067.56 | -2.25% | Due to inventory impairment provisions made during the reporting period | Regular item, amount varies with operating conditions | | Non-operating Income | 171,765.04 | 0.18% | Due to disposal of shelves and scrapped equipment during the reporting period | Uncertain, not sustainable | | Non-operating Expenses | 31,893.55 | 0.03% | Due to donations during the reporting period | Uncertain, not sustainable | V. Asset and Liability Status Analysis This section analyzes significant changes in the company's asset and liability structure. Monetary funds and construction in progress significantly increased due to operating profits and the advancement of fundraising projects, while inventory decreased due to optimized management. Concurrently, right-of-use assets and lease liabilities increased due to subsidiary business expansion. The fair value of financial assets at period-end slightly decreased, and some monetary funds were restricted Significant Changes in Asset Composition (Unit: RMB) | Item | Amount at End of Current Period | % of Total Assets | Amount at End of Prior Year | % of Total Assets | % Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 439,200,826.25 | 22.27% | 338,733,013.65 | 19.42% | 2.85% | Increase in cash inflow from profitable operating activities during the reporting period | | Inventory | 67,789,768.82 | 3.44% | 105,553,492.88 | 6.05% | -2.61% | Due to optimized inventory management during the reporting period | | Construction in Progress | 187,800,734.02 | 9.52% | 91,319,350.17 | 5.23% | 4.29% | Increase in construction in progress for fundraising projects during the reporting period | | Right-of-Use Assets | 1,838,801.05 | 0.09% | 766,016.88 | 0.04% | 0.05% | Increase in right-of-use assets by subsidiaries during the reporting period | | Contract Liabilities | 19,744,871.71 | 1.00% | 31,481,639.41 | 1.80% | -0.80% | Normal recognition of contract liabilities with sales revenue during the reporting period | | Lease Liabilities | 780,319.65 | 0.04% | 0.00 | 0.00% | 0.04% | Increase in right-of-use assets by subsidiaries, simultaneously increasing lease liabilities during the reporting period | Assets and Liabilities Measured at Fair Value (Unit: RMB) | Item | Beginning Balance | Fair Value Change Gains/Losses for Current Period | Amount Purchased for Current Period | Amount Sold for Current Period | Ending Balance | | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 496,195,455.42 | -252,364.90 | 1,795,100,000.00 | 1,798,800,000.00 | 492,243,090.52 | - As of the end of the reporting period, the company's restricted assets primarily consisted of monetary funds, totaling RMB 50.82 million, which were bank acceptance bill deposits[73] VI. Investment Status Analysis This section provides a detailed analysis of the company's investment activities, including changes in financial assets measured at fair value (primarily wealth management products), and the overall use and progress of fundraising projects. The company actively utilizes idle raised funds for cash management to ensure capital efficiency, and fundraising project construction is proceeding smoothly as planned Financial Assets Measured at Fair Value (Unit: RMB) | Asset Category | Initial Investment Cost | Fair Value Change Gains/Losses for Current Period | Amount Purchased During Reporting Period | Amount Sold During Reporting Period | Cumulative Investment Income | Ending Balance | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Other (Own Funds) | 115,686,196.47 | 4,809.10 | 1,037,300,000.00 | 1,007,000,000.00 | 1,951,704.34 | 145,991,005.57 | Own Funds | | Other (Raised Funds) | 380,509,258.95 | -257,174.00 | 757,800,000.00 | 791,800,000.00 | 5,505,968.66 | 346,252,084.95 | Raised Funds | | Total | 496,195,455.42 | -252,364.90 | 1,795,100,000.00 | 1,798,800,000.00 | 7,457,673.00 | 492,243,090.52 | -- | Overall Use of Raised Funds (Unit: RMB 10,000) | Indicator | Amount | | :--- | :--- | | Total Raised Funds | 89,138.6 | | Net Raised Funds | 79,329.73 | | Total Raised Funds Used in Current Period | 7,606.53 | | Total Raised Funds Used Cumulatively | 16,257.56 | | Total Unused Raised Funds | 65,847.64 | | Of which: Unused Raised Funds Deposited in Company's Special Account | 23,247.64 | | Of which: Balance of Idle Raised Funds (including over-raised funds) for Cash Management | 42,600.00 | Status of Raised Fund Commitment Projects (Unit: RMB 10,000) | Project Name | Committed Investment Amount (1) | Amount Invested in Current Period | Cumulative Investment Amount as of Period-End (2) | Investment Progress as of Period-End (2)/(1) | Estimated Date of Usability | | :--- | :--- | :--- | :--- | :--- | :--- | | Health Food Intelligent Production Line Technical Transformation Project | 32,926.4 | 5,966.75 | 11,620.02 | 35.29% | September 30, 2026 | | Vitamin and Mineral OTC Product Intelligent Production Line Technical Transformation Project | 9,369.9 | 948.87 | 3,003.59 | 32.06% | September 30, 2026 | | Minsheng Health R&D Center Technical Transformation Project | 4,161.43 | 690.91 | 1,633.95 | 39.26% | September 30, 2026 | | Subtotal of Committed Investment Projects | 46,457.73 | 7,606.53 | 16,257.56 | -- | -- | - The company has been approved to use temporarily idle raised funds (including over-raised funds) of up to RMB 710 million for cash management, valid for 12 months from the date of approval by the shareholders' meeting[82] VII. Major Asset and Equity Sales This section confirms that the company did not undertake any major asset or equity sales during the reporting period - The company did not sell major assets during the reporting period[89] - The company did not sell major equity during the reporting period[90] VIII. Analysis of Major Holding and Participating Companies This section states that the company has no important holding or participating company information requiring disclosure during the reporting period - The company had no important holding or participating company information that should be disclosed during the reporting period[90] IX. Structured Entities Controlled by the Company This section confirms that the company did not control any structured entities during the reporting period - The company had no structured entities under its control during the reporting period[91] X. Risks Faced by the Company and Countermeasures The company faces risks including product concentration, distributor management, industry policy changes, uncertainties in new products/businesses/models/projects, and the possibility that fundraising investment projects may not achieve expected benefits. To address these risks, the company has adopted measures such as diversifying its product portfolio, strengthening distributor management, closely monitoring policies, prudently expanding new businesses, and actively advancing fundraising projects - The company's core product, multivitamin tablets (21), accounts for a high proportion of sales revenue (68.89% in 2024), posing a risk of product concentration; the company is addressing this through enriching its product matrix, deepening channel systems, and optimizing R&D innovation[91][92] - The company's sales model is primarily distribution (distribution revenue accounted for 87.81% in 2024), posing a distributor management risk; the company mitigates this by strictly controlling entry thresholds and conducting regular visits and supervision[93] - The pharmaceutical and health food industries are highly regulated, with continuous policy adjustments and stricter supervision; the company will closely monitor policy changes and operate in compliance with laws and regulations[94] - The company's "Four New" strategy (new products, new businesses, new models, new projects) involves uncertainties in business and profit models; the company will adhere to a prudent expansion strategy, strengthening market research and risk management[95][96] - Fundraising investment projects may experience extended investment cycles, delayed production, or lower-than-expected benefits due to macroeconomic, technological, market, and other factors; the company will promptly grasp industry dynamics and actively promote project implementation[98] XI. Registration Form for Research, Communication, Interview Activities During the Reporting Period This section details the company's investor relations activities during the reporting period, including the time, location, method, type of participants, discussion content, and materials provided, demonstrating the company's efforts to actively maintain investor relations - During the reporting period, the company received institutional investors and unspecified investors through various methods, including telephone communication, online/telephone conferences, Panorama Network's "Investor Relations Interactive Platform", and on-site visits at the company's meeting rooms[99][101] - The main discussion topics included the company's fundamentals, development strategy, and 2024 performance, with no substantive materials provided[99][101] XII. Implementation of Market Value Management System and Valuation Enhancement Plan This section clarifies that the company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period - The company has not formulated a market value management system[102] - The company has not disclosed a valuation enhancement plan[103] XIII. Implementation of "Quality and Return Double Improvement" Action Plan This section states that the company did not disclose an announcement regarding the "Quality and Return Double Improvement" action plan during the reporting period - The company did not disclose an announcement regarding the "Quality and Return Double Improvement" action plan[104][105] Part IV Corporate Governance, Environment, and Society This section details changes in governance, profit distribution plans, incentive schemes, environmental disclosures, and the company's commitment to social responsibility I. Changes in Directors, Supervisors, and Senior Management This section discloses changes in the company's supervisory board members during the reporting period, with Liu Yang, Zhang Zhouxiong, and Bao Zisheng resigning due to supervisory board reform - During the reporting period, Liu Yang (Chairman of the Supervisory Board), Zhang Zhouxiong (Supervisor), and Bao Zisheng (Employee Representative Supervisor) resigned due to supervisory board reform[107] II. Profit Distribution and Capital Reserve to Share Capital Conversion for the Current Reporting Period This section clarifies that the company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[108] III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures This section states that the company's 2024 restricted stock incentive plan had no progress or changes during the reporting period, and no employee stock ownership plans or other employee incentive measures were implemented - The company's 2024 restricted stock incentive plan had no progress or changes during the reporting period[109] - The company had no implementation of employee stock ownership plans during the reporting period[110] - The company had no other employee incentive measures during the reporting period[110] IV. Environmental Information Disclosure This section confirms that the company and its major subsidiaries are included in the list of enterprises required to disclose environmental information by law, and provides an index for querying reports, demonstrating the company's compliance in environmental information transparency - The company and its major subsidiaries are included in the list of enterprises required to disclose environmental information by law, with 1 enterprise (Minsheng Health)[111] - The environmental information disclosure report can be queried on the Zhejiang Provincial Department of Ecology and Environment - Enterprise Environmental Information Disclosure System[111] V. Social Responsibility This section emphasizes the company's commitment to its business philosophy of "developing the enterprise, achieving win-win cooperation, contributing to society, and benefiting employees," actively fulfilling social responsibilities through charitable donations, employee care activities, and industry-academia collaborations to create greater value for society - The company consistently adheres to the business philosophy of "developing the enterprise, achieving win-win cooperation, contributing to society, and benefiting employees," operating with dedication and practicing philanthropy[112] - During the reporting period, the company donated "health care packages" to disadvantaged children aged 8-14 and disadvantaged elderly aged 65 and above through the Zhejiang Health Products and Cosmetics Industry Association[112] - The company organized the fifth "Healthy Family" Children's Day event and "Minsheng 21 Health Day" event to enhance employee belonging[112] - The company strengthened industry-academia cooperation, conducting mutual visits and exchanges with Hangzhou Business School of Zhejiang Gongshang University to explore future in-depth collaboration points[112] Part V Significant Matters This section covers critical corporate events, including commitments, related party transactions, litigation, and significant developments concerning subsidiaries, while confirming the absence of non-operating fund occupation or irregular guarantees I. Commitments Fulfilled During the Reporting Period and Overdue Unfulfilled Commitments as of the End of the Reporting Period by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and Other Committed Parties This section states that during the reporting period, there were no commitments by the company's actual controller, shareholders, related parties, acquirers, or the company itself that were either fulfilled or overdue and unfulfilled as of the end of the reporting period - During the reporting period, there were no commitments by the company's actual controller, shareholders, related parties, acquirers, or the company itself that were either fulfilled or overdue and unfulfilled as of the end of the reporting period[114] II. Non-operating Fund Occupation by Controlling Shareholder and Other Related Parties of the Listed Company This section confirms that there was no non-operating fund occupation by the controlling shareholder or other related parties of the listed company during the reporting period - During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties of the listed company[115] III. Irregular External Guarantees This section states that the company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[116] IV. Appointment and Dismissal of Accounting Firm This section clarifies that the company's semi-annual financial report was not audited - The company's semi-annual report was not audited[117] V. Explanations by the Board of Directors, Supervisory Board, and Audit Committee on the Accounting Firm's "Non-Standard Audit Report" for the Current Reporting Period This section states that there was no non-standard audit report for the company in the current reporting period, thus no explanation from the Board of Directors, Supervisory Board, or Audit Committee is required - Not applicable[118] VI. Explanation by the Board of Directors on the "Non-Standard Audit Report" for the Previous Year This section states that there was no non-standard audit report for the company in the previous year, thus no explanation from the Board of Directors is required - Not applicable[118] VII. Bankruptcy Reorganization Related Matters This section confirms that the company did not experience any bankruptcy reorganization related matters during the reporting period - The company did not experience any bankruptcy reorganization related matters during the reporting period[119] VIII. Litigation Matters This section states that the company had no significant litigation or arbitration matters, or other litigation matters, during the reporting period - The company had no significant litigation or arbitration matters during the reporting period[120] - The company had no other litigation matters during the reporting period[121] IX. Penalties and Rectification Status This section confirms that the company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[121] X. Integrity Status of the Company and its Controlling Shareholder, Actual Controller This section states that the integrity status of the company, its controlling shareholder, and actual controller was good during the reporting period - During the reporting period, the integrity status of the company, its controlling shareholder, and actual controller was good[122] XI. Major Related Party Transactions This section confirms that the company had no significant related party transactions related to daily operations, asset or equity acquisitions/disposals, or joint external investments during the reporting period. Furthermore, there were no non-operating related party creditor-debtor relationships or financial business dealings with affiliated financial companies - The company had no significant related party transactions related to daily operations during the reporting period[123] - The company had no related party transactions involving asset or equity acquisitions or disposals during the reporting period[124] - The company had no related party transactions involving joint external investments during the reporting period[126] - The company had no non-operating related party creditor-debtor relationships during the reporting period[127] - The company had no deposits, loans, credit lines, or other financial business dealings with affiliated financial companies or financial companies controlled by the company and their related parties[128][129] - The company had no other major related party transactions during the reporting period[130] XII. Major Contracts and Their Performance This section discloses the company's leasing activities during the reporting period, including leasing office and production facilities as a lessee, and leasing out some properties as a lessor. The company had no trusteeship, contracting, major guarantees, major daily operating contracts, or other major contracts - The company had no trusteeship situations during the reporting period[131] - The company had no contracting situations during the reporting period[133] - The company and its subsidiaries leased properties for office and production use, and leased out some properties during the reporting period[134][135] - The company had no leasing projects that generated profits or losses exceeding 10% of the company's total profit during the reporting period[136] - The company had no major guarantee situations during the reporting period[137] - The company had no other major contracts during the reporting period[139] XIII. Explanation of Other Significant Matters This section confirms that the company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[140] XIV. Significant Matters of Company Subsidiaries This section discloses the company's strategic cooperation agreement with Zhongke Jiayi and other entities, expanding its probiotic business through the acquisition of 100% equity in Minsheng Zhongke (Shandong) to enhance R&D capabilities and market competitiveness. This transaction has completed industrial and commercial changes and is included in the consolidated financial statements - The company signed a "Strategic Cooperation Intent Agreement" with Pan Yulin and Zhongke Jiayi (Shandong) Investment Holding Co, Ltd, for strategic cooperation in the probiotic field[141] - The company's subsidiary Minsheng Zhongke (Zhejiang) acquired 100% equity in Minsheng Zhongke (Shandong), which has completed industrial and commercial registration changes and was included in the company's consolidated financial statements as of February 2025[142] - This strategic cooperation is beneficial for expanding the company's business development space in the probiotic field, enhancing R&D capabilities and market competitiveness, and strengthening the company's overall influence[143] Part VI Share Changes and Shareholder Information This section details changes in the company's share capital, shareholder structure, and the holdings of key personnel, including information on share buybacks and major shareholders I. Share Changes This section details the company's share changes during the reporting period, showing no changes in total share capital, restricted shares, or unrestricted shares. The company has initiated a share repurchase plan for equity incentives, having cumulatively repurchased 1,328,000 shares as of the end of the reporting period Share Changes (Unit: Shares) | Category | Quantity Before Change | Proportion Before Change | Increase/Decrease in This Change | Quantity After Change | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 246,022,472 | 69.00% | 0 | 246,022,472 | 69.00% | | II. Unrestricted Shares | 110,531,858 | 31.00% | 0 | 110,531,858 | 31.00% | | III. Total Shares | 356,554,330 | 100.00% | 0 | 356,554,330 | 100.00% | - On March 19, 2025, the company approved a resolution to repurchase company shares through centralized bidding for equity incentives, with a repurchase price not exceeding RMB 19.80 per share (adjusted to RMB 19.70 per share after ex-rights/ex-dividend)[148] - As of June 30, 2025, the company had cumulatively repurchased 1,328,000 shares, accounting for 0.37% of the company's current total share capital, with a total payment of RMB 17.26 million[148] II. Securities Issuance and Listing This section states that the company had no securities issuance or listing during the reporting period - Not applicable[151] III. Company Shareholder Numbers and Shareholding This section discloses that as of the end of the reporting period, the company had 21,514 common shareholders, and details the shareholding of shareholders holding 5% or more or the top 10 shareholders, including their nature, shareholding percentage, number of shares held, and restricted/unrestricted shares. It also explains the related party relationships among major shareholders - As of the end of the reporting period, the total number of common shareholders was 21,514[152] Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders (Unit: Shares) | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at End of Reporting Period | Number of Restricted Shares Held | Number of Unrestricted Shares Held | | :--- | :--- | :--- | :--- | :--- | :--- | | Hangzhou Minsheng Pharmaceutical Co, Ltd | Domestic Non-State-Owned Legal Person | 66.75% | 238,000,000 | 238,000,000 | 0 | | Hangzhou Jingniu Enterprise Management Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 0.90% | 3,208,989 | 3,208,989 | 0 | | Hangzhou Chaodao Equity Investment Fund Management Co, Ltd - Hangzhou Hemeng Yizhi Equity Investment Partnership (Limited Partnership) | Other | 0.75% | 2,674,157 | 0 | 2,674,157 | | Hangzhou Jingyi Enterprise Management Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 0.75% | 2,674,157 | 2,674,157 | 0 | | Zhejiang Puhua Tianqin Equity Investment Management Co, Ltd - Lanxi Puhua Lingju Venture Capital Partnership (Limited Partnership) | Other | 0.66% | 2,359,703 | 0 | 2,359,703 | | Ruimin Enterprise Management (Ningbo Meishan Bonded Port Area) Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 0.60% | 2,139,326 | 2,139,326 | 0 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 0.48% | 1,711,461 | 0 | 1,711,461 | | Wang Weihao | Domestic Natural Person | 0.31% | 1,115,600 | 0 | 1,115,600 | | Lou Biao | Domestic Natural Person | 0.31% | 1,114,600 | 0 | 1,114,600 | | Gao Canxuan | Domestic Natural Person | 0.25% | 904,783 | 0 | 904,783 | - Hangzhou Minsheng Pharmaceutical Co, Ltd, Hangzhou Jingniu Enterprise Management Partnership (Limited Partnership), Hangzhou Jingyi Enterprise Management Partnership (Limited Partnership), and Ruimin Enterprise Management (Ningbo Meishan Bonded Port Area) Partnership (Limited Partnership) are all enterprises controlled by the company's actual controllers, Zhu Fujiang and Zhu Yuqi[154] - Among the top 10 shareholders, there is the company's dedicated securities account for share repurchases (1,328,000 shares, accounting for 0.37% of the company's total share capital), which is not listed among the top 10 shareholders[154] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management This section confirms that there were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period, with specific details available in the 2024 annual report - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[156] V. Changes in Controlling Shareholder or Actual Controller This section states that there were no changes in the company's controlling shareholder or actual controller during the reporting period - There were no changes in the company's controlling shareholder during the reporting period[157] - There were no changes in the company's actual controller during the reporting period[158] Part VII Bond-Related Information This section confirms the absence of any bond-related information for the reporting period Bond-Related Information This section states that the company had no bond-related information during the reporting period - Not applicable[161] Part VIII Financial Report This section presents the unaudited financial statements, including detailed notes on assets, liabilities, equity, income, and expenses, along with disclosures on accounting policies, taxation, and financial risks I. Audit Report This section clarifies that the company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[163] II. Financial Statements This section provides the company's consolidated and parent company financial statements for the first half of 2025, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, comprehensively reflecting the company's financial position and operating results at the end of the reporting period - This section includes the consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, parent company cash flow statement, consolidated statement of changes in owners' equity, and parent company statement of changes in owners' equity[164][168][172][176][178][180][182][192] III. Company Basic Information This section introduces the company's establishment background, registration information, share capital structure, listing status, organizational structure, and main business activities, clarifying its positioning as a high-tech enterprise in the pharmaceutical manufacturing industry - Hangzhou Minsheng Health Pharmaceutical Co, Ltd was established on May 20, 2021, and its shares were listed and traded on the Shenzhen Stock Exchange on September 5, 2023[204] - The company's registered capital and total share capital are both RMB 356,554,330.00[204] - The company's main business activities include pharmaceutical production, health food production, food production, cosmetics production, pharmaceutical retail and wholesale, and import and export of goods, belonging to the pharmaceutical manufacturing industry[205] IV. Basis for Financial Statement Preparation This section states that the company's financial statements are prepared on a going concern basis, strictly adhering to the Enterprise Accounting Standards issued by the Ministry of Finance and the information disclosure regulations of the China Securities Regulatory Commission, and there are no matters that raise significant doubts about its going concern ability - The company prepares its financial statements on a going concern basis, based on actual transactions and events, in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance and the "Reporting Rules for Information Disclosure by Companies Issuing Securities to the Public No 15 - General Provisions for Financial Reports (Revised in 2023)" issued by the China Securities Regulatory Commission[207] - There are no matters or circumstances that cause significant doubt about the going concern assumption for the 12 months from the end of the reporting period[208] V. Significant Accounting Policies and Estimates This section elaborates on the significant accounting policies and estimates followed by the company in preparing its financial statements, covering key areas such as financial instruments, business combinations, revenue recognition, inventory, fixed assets, intangible assets, deferred income tax, and leases, ensuring the standardization and reliability of financial reporting - The financial statements prepared by the company comply with the requirements of enterprise accounting standards, truly and completely reflecting the company's financial position, operating results, and cash flows, among other relevant information[211] - The accounting year runs from January 1 to December 31 of the Gregorian calendar, and the actual preparation period for these financial statements is from January 1, 2025, to June 30, 2025[212][213] - The company and its domestic subsidiaries use RMB as their functional currency[215] - The company classifies financial assets into those measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss, based on the business model for managing financial assets and the contractual cash flow characteristics of the financial assets[241] - The company uses the transfer of control as the criterion for revenue recognition, with main product sales models being distribution, direct sales, and e-commerce online retail[371][374] - Inventory is measured at the lower of cost and net realizable value, with inventory impairment provisions made at the end of the period for individual inventory items or categories[291] - Fixed assets are depreciated using the straight-line method, with depreciation periods of 20 years for buildings, 4-10 years for machinery and equipment, 5 years for transportation vehicles, and 3-10 years for electronic equipment and others, all with a residual value rate of 5.00%[330] - Intangible assets with finite useful lives are amortized using the straight-line method; intangible assets with indefinite useful lives are not amortized but are tested for impairment annually[341] - The company recognizes right-of-use assets and lease liabilities for leases other than short-term leases and leases of low-value assets[394][395] VI. Taxation This section details the main tax types, tax bases, and applicable tax rates for the company and its subsidiaries, and discloses that the company, as a high-tech enterprise, enjoys a 15% corporate income tax preferential rate and a 100% super deduction for R&D expenses Main Tax Types and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Value-added amount generated during sales of goods or provision of taxable services | Calculated at 13% and other tax rates | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 7% | | Corporate Income Tax | Taxable income | 15%, 25% | | Property Tax | For value-based assessment, 1.2% of the remaining value after a one-time deduction of 30% from the original value of the property; for rent-based assessment, 12% of rental income | 1.2%, 12% | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2% | - Hangzhou Minsheng Health Pharmaceutical Co, Ltd and Minsheng Zhongke Jiayi (Zhejiang) Bioengineering Co, Ltd, as high-tech enterprises, are subject to a corporate income tax rate of 15% for January-June 2025[417][418] - The company is eligible for a 100% super deduction for actual R&D expenses incurred from January-June 2025 before tax[419] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes on various asset, liability, owner's equity, income, cost, and expense items in the consolidated financial statements. Monetary funds increased at period-end, while financial assets held for trading slightly decreased, and notes receivable and inventory decreased. Construction in progress and intangible assets significantly grew due to fundraising projects and business combinations, and goodwill also increased due to subsidiary acquisitions. Both operating revenue and net profit achieved growth, and cash flow structure showed some changes Monetary Funds (Unit: RMB) | Item | Ending Balance | Beginning Balance | | :--- | :--- | :--- | | Bank Deposits | 374,956,415.87 | 320,085,264.02 | | Other Monetary Funds | 64,244,410.38 | 18,647,749.63 | | Total | 439,200,826.25 | 338,733,013.65 | - Restricted monetary funds at period-end amounted to RMB 50.82 million, primarily bank acceptance bill deposits[512] Financial Assets Held for Trading (Unit: RMB) | Item | Ending Balance | Beginning Balance | | :--- | :--- | :--- | | Financial assets measured at fair value through profit or loss | 492,243,090.52 | 496,195,455.42 | | Of which: Bank wealth management products and structured deposits | 492,243,090.52 | 496,195,455.42 | | Total | 492,243,090.52 | 496,195,455.42 | Accounts Receivable (Unit: RMB) | Category | Ending Book Value | Beginning Book Value | | :--- | :--- | :--- | | Accounts receivable for which bad debt provisions are accrued by portfolio | 57,850,930.39 | 46,985,494.89 | | Total | 57,850,930.39 | 46,985,494.89 | Inventory (Unit: RMB) | Item | Ending Book Value | Beginning Book Value | | :--- | :--- | :--- | | Raw Materials | 30,413,214.33 | 24,584,638.12 | | Work in Progress | 2,892,912.61 | 3,218,655.45 | | Finished Goods | 22,473,546.40 | 60,590,713.68 | | Goods Issued | 3,