仟源医药(300254) - 2025 Q2 - 季度财报

Section 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, supervisory board, and senior management guarantee the report's accuracy, while the financial officers confirm the financial statements' integrity, with all directors attending the review meeting - Company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, free from false records, misleading statements, or major omissions[4] - Company's responsible person Zhao Qun, head of accounting work He Yanjie, and head of accounting department Liu Yali declare that the financial report is true, accurate, and complete[4] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5] Table of Contents The report's clear table of contents lists eight main chapters covering important notices, company profile, MD&A, corporate governance, significant matters, share changes, bond information, and financial reports, with page numbers indicated - The report comprises eight main chapters, structured clearly for easy reference[7] - Chapter content covers company overview, financial performance, management analysis, corporate governance, significant events, and financial reports[7] List of Reference Documents Reference documents include financial statements signed and sealed by the legal representative and accounting officers, original announcements disclosed on the CSRC-designated website, and the original semi-annual report, all available at the company's securities department - Reference documents include financial statements bearing the signatures and seals of the company's legal representative, head of accounting work, and head of accounting department[9] - All original company documents and announcements publicly disclosed on the CSRC-designated website during the reporting period are also included in the reference documents[10] - These documents are available at the company's securities department[13] Definitions This section defines common terms used in the report, including company names, key subsidiaries, governance bodies, and industry-specific medical terminology, ensuring accurate understanding of the content - "Company", "the Company", and "Qianyuan Pharmaceutical" all refer to Shanxi Qianyuan Pharmaceutical Group Co., Ltd[15] - Several holding and wholly-owned subsidiaries are listed, such as Qianyuan Haisheng, Baoling Group, and Qianyuan Enshi[15] - Medical industry specific terms like "generic drugs", "anti-infective drugs", "gene preservation", "GMP", and "consistency evaluation" are explained[15] Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, and a summary of its key financial performance and indicators for the reporting period I. Company Profile The company, Shanxi Qianyuan Pharmaceutical Group Co., Ltd., is listed on the Shenzhen Stock Exchange under stock code 300254, with Zhao Qun as its legal representative - Company stock abbreviation: Qianyuan Pharmaceutical, stock code: 300254[17] - Stock exchange for listing: Shenzhen Stock Exchange[17] - The company's legal representative is Zhao Qun[17] II. Contact Persons and Information The company's Board Secretary is Yu Junxian and Securities Affairs Representative is Xue Yuanyuan, both located at No. 2 Cuiwei Street, Datong Economic and Technological Development Zone, with provided contact details - Board Secretary is Yu Junxian, Securities Affairs Representative is Xue Yuanyuan[18] - Contact address: No. 2 Cuiwei Street, Biotechnology Innovation Industrial Park, Datong Economic and Technological Development Zone[18] - Contact phone: 0352-6116426, fax: 0352-6116452[18] III. Other Information During the reporting period, there were no changes in the company's registered address, office address, website, email, information disclosure website, media name, or registration status, with details available in the 2024 annual report - The company's registered address, office address and postal code, website, email, etc., remained unchanged during the reporting period[19] - Information disclosure and availability locations remained unchanged during the reporting period[20] - The company's registration status remained unchanged during the reporting period[21][22] IV. Key Accounting Data and Financial Indicators This reporting period saw a 7.01% decrease in operating revenue, a 98.86% significant drop in net profit attributable to shareholders, a 124.99% decline in non-recurring net profit, and a 62.82% decrease in net cash flow from operating activities, alongside reductions in total assets and net assets Key Accounting Data and Financial Indicators | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Change from Prior Year Period | | :--- | :--- | :--- | :--- | | Operating Revenue | 372,995,932.54 | 401,112,573.00 | -7.01% | | Net Profit Attributable to Shareholders of Listed Company | 380,868.67 | 33,502,484.50 | -98.86% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains/Losses) | -5,011,716.56 | 20,055,202.16 | -124.99% | | Net Cash Flow from Operating Activities | 22,483,410.56 | 60,473,663.78 | -62.82% | | Basic Earnings Per Share (Yuan/share) | 0.0016 | 0.1387 | -98.85% | | Diluted Earnings Per Share (Yuan/share) | 0.0016 | 0.1387 | -98.85% | | Weighted Average Return on Net Assets | 0.14% | 5.43% | -5.29% | | End of Current Reporting Period (Yuan) | End of Prior Year (Yuan) | Change from End of Prior Year | | | Total Assets | 1,496,381,241.42 | 1,547,725,078.17 | -3.32% | | Net Assets Attributable to Shareholders of Listed Company | 253,595,732.99 | 342,998,882.45 | -26.07% | - Net profit after deducting the impact of share-based payments was 7,576,850.54 Yuan[23] V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards During the reporting period, the company reported no differences in net profit and net assets between financial statements prepared under international or overseas accounting standards and those prepared under Chinese accounting standards - The company reported no differences in net profit and net assets between financial statements disclosed under international accounting standards and those under Chinese accounting standards during the reporting period[24] - The company reported no differences in net profit and net assets between financial statements disclosed under overseas accounting standards and those under Chinese accounting standards during the reporting period[25] VI. Non-recurring Gains and Losses and Their Amounts Total non-recurring gains and losses for the current period amounted to 5,392,585.23 Yuan, primarily from disposal of non-current assets, government grants, and capital occupation fees, while certain recurring government grants were classified as ordinary income Non-recurring Gains and Losses and Their Amounts | Item | Amount (Yuan) | Explanation | | :--- | :--- | :--- | | Gains or losses from disposal of non-current assets (including the write-off portion of asset impairment provisions) | 7,755,156.75 | | | Government grants recognized in current profit or loss (excluding those closely related to the company's normal operations, compliant with national policies, enjoyed according to fixed standards, and having a continuous impact on the company's profit or loss) | 994,930.43 | | | Capital occupation fees charged to non-financial enterprises recognized in current profit or loss | 113,207.54 | | | Reversal of impairment provisions for individually tested receivables | 2,500.00 | | | Other non-operating income and expenses apart from the above items | -4,255,800.81 | | | Less: Income tax impact | -551,202.03 | | | Minority interest impact (after tax) | -231,389.29 | | | Total | 5,392,585.23 | | - The company classified government grants closely related to normal business operations, compliant with national policies, enjoyed according to fixed standards, and having a continuous impact on the company's profit or loss (10,401,989.65 Yuan for January-June 2025) as recurring gains and losses[27] Section III Management Discussion and Analysis This section provides an in-depth analysis of the company's primary business operations, core competencies, financial performance, investment activities, and the risks and opportunities it faces I. Main Business Activities During the Reporting Period The company primarily engages in R&D, production, and sales of pharmaceuticals and health foods, along with medical diagnostic and gene preservation services, experiencing a 7.01% revenue decline and a 98.86% net profit drop due to tax adjustments, reduced gross profit, and increased equity incentive expenses - The company operates in the pharmaceutical industry, primarily engaged in the R&D, production, and sales of pharmaceuticals and health foods, as well as medical diagnostic, gene preservation, and commercial services[29] Company's Main Financial Performance in H1 2025 | Indicator | Amount (10,000 Yuan) | Year-on-year Change | | :--- | :--- | :--- | | Operating Revenue | 37,299.59 | -7.01% | | Net Profit Attributable to Shareholders of Listed Company | 38.09 | -98.86% | - The decline in performance was mainly due to a subsidiary's supplementary payment of corporate income tax and late fees, a decrease in gross profit due to lower operating revenue, and an increase in equity incentive expenses year-on-year[32] 1. Company's Main Business The company's core business encompasses R&D, production, and sales of pharmaceuticals and health foods, alongside medical diagnostic and gene preservation services, offering a diverse range of pharmaceutical products and key health food items like Baoling Yunbao Oral Liquid - The company operates in the pharmaceutical industry, primarily engaged in the R&D, production, and sales of pharmaceuticals and health foods, as well as medical diagnostic, gene preservation, and commercial services[29] - Pharmaceutical product categories include anti-infective drugs, anti-allergic drugs, urinary system drugs, smoking cessation drugs, pediatric drugs, respiratory system drugs, antidepressant drugs, kidney disease drugs, pharmaceutical raw materials, and intermediates[29] - The company's health food products primarily include Baoling Yunbao Oral Liquid, and medical health services include medical testing and gene preservation services[29] 2. Company's Main Products and Their Uses The company's product portfolio includes anti-infective, anti-allergic, urinary system, smoking cessation, pediatric, respiratory, antidepressant, kidney disease, novel oral anticoagulant, and antihypertensive drugs, along with health foods and DNA gene preservation services, each with specific indications or uses Company's Main Products and Their Uses | Therapeutic Area | Product Name | Product Use | | :--- | :--- | :--- | | Anti-infective Drugs | Fosfomycin Trometamol Granules | Used for respiratory tract infections, lower urinary tract infections (such as cystitis, urethritis), intestinal infections, and skin and soft tissue infections caused by susceptible pathogens | | Anti-allergic Drugs | Ebastine Tablets | Indicated for allergic rhinitis with or without allergic conjunctivitis; symptomatic treatment of chronic idiopathic urticaria | | Urinary System Drugs | Tamsulosin Hydrochloride Extended-Release Capsules | Urinary obstruction caused by benign prostatic hyperplasia | | Smoking Cessation Drugs | Varenicline Tartrate Tablets | Indicated for smoking cessation in adults | | Pediatric Drugs | Montmorillonite Powder | Indicated for acute and chronic diarrhea in adults and children | | Pediatric Drugs | Vitamin AD Drops | Indicated for the prevention and treatment of vitamin A and D deficiencies | | Respiratory System Drugs | Ambroxol Hydrochloride Dispersible Tablets | Indicated for the treatment of acute and chronic respiratory diseases with abnormal sputum secretion and impaired sputum clearance | | Antidepressant Drugs | Fluoxetine Hydrochloride Capsules | Indicated for depression, obsessive-compulsive disorder, bulimia nervosa: as an adjunct to psychotherapy to reduce binge eating and purging behaviors | | Antidepressant Drugs | Sertraline Hydrochloride Tablets | Used for the treatment of symptoms associated with depression, including伴随焦虑、有或无躁狂史的抑郁症。疗效满意后，继续服用可有效地防止抑郁症的复发和再发。也用于治疗强迫症。疗效满意后，继续服用舍曲林可有效地防止强迫症初始症状的复发。 | | Kidney Disease Drugs | Cinacalcet Hydrochloride Tablets | Used for the treatment of secondary hyperparathyroidism (SHPT) in chronic kidney disease (CKD) patients undergoing dialysis, and also for hypercalcemia in patients with parathyroid carcinoma | | Novel Oral Anticoagulants | Apixaban Tablets | Primarily used in adult patients undergoing elective hip or knee replacement surgery to prevent venous thromboembolic events (VTE); used for the treatment of adult deep vein thrombosis (DVT) and pulmonary embolism (PE); used in adult patients with non-valvular atrial fibrillation with one or more risk factors to reduce the risk of stroke and systemic embolism | | Novel Oral Anticoagulants | Rivaroxaban Tablets | Primarily used in adult patients undergoing elective hip or knee replacement surgery to prevent venous thromboembolism (VTE) | | Antihypertensive Drugs | Perindopril Arginine Tablets | Indicated for the treatment of all types of hypertension and heart failure | | Health Foods | Baoling Brand Yunbao Oral Liquid | Improves nutritional anemia, enhances immunity | | Services | DNA Gene Preservation | Primarily used as raw material for gene therapy, assisting in disease diagnosis and treatment | 3. Company's Business Model The company operates on a "production-to-order" model, adhering strictly to GMP standards, with centralized procurement, and a sales strategy combining distributors and promotional service providers for pharmaceuticals, primarily distributors for health foods, and direct sales for raw materials and services - Procurement Model: The procurement department is solely responsible, with bulk items centralized procured, strict selection and assessment of suppliers, and reasonable control of procurement inventory[31] - Production Model: Adopts a "production-to-order" approach, where the production department arranges production based on sales plans, strictly adhering to GMP requirements to ensure product quality and safety[31] - Sales Model: Pharmaceutical preparations use a combination of distributor sales and academic promotion by service providers; health foods are primarily sold through distributors with supplementary direct sales; raw materials and service businesses mainly adopt a direct sales model[31] 4. Company's Key Operations During the Reporting Period In H1 2025, the company's operating revenue was 372.99 million Yuan, a 7.01% decrease, and net profit attributable to shareholders was 0.38 million Yuan, a 98.86% decrease, primarily due to a subsidiary's supplementary tax payments, reduced gross profit, and increased equity incentive expenses, while actively advancing sales, R&D, production, and internal management H1 2025 Key Financial Data | Indicator | Amount (10,000 Yuan) | Year-on-year Change | | :--- | :--- | :--- | | Operating Revenue | 37,299.59 | -7.01% | | Net Profit Attributable to Shareholders of Listed Company | 38.09 | -98.86% | - The decline in performance was mainly due to a subsidiary's supplementary payment of corporate income tax and late fees, a decrease in gross profit due to lower operating revenue, and an increase in equity incentive expenses year-on-year[32] - The company focused on market growth breakthroughs in sales, accelerated the layout of first-generic drug commercialization in R&D, strengthened basic management and promoted energy saving and process optimization in production, and enhanced management efficiency through digitalization and compliance in internal management[32][33][34] 5. Industry Development Overview In 2025, the pharmaceutical industry is transitioning from policy-driven growth to intrinsic value, with expanding development space driven by an aging population and health consumption upgrades, while national regulations optimize review processes and strengthen supervision, and the company's R&D projects are progressing well - In 2025, the pharmaceutical industry is transforming from "policy dividend-driven" to "intrinsic value-driven", with continuous expansion of industry development space[35] - The National Medical Products Administration optimized drug and medical device review and approval processes, strengthened full lifecycle supervision, and issued anti-monopoly guidelines to reinforce industry compliance boundaries[35][36] Company's R&D Project Progress During the Reporting Period | No. | Project Name | Registration Category | Indications | Research Progress | | :--- | :--- | :--- | :--- | :--- | | 1 | Ferric Maltol Capsules | Chemical Drug Class 3 | For the treatment of iron deficiency anemia in adults | Clinical trial approval notice obtained | | 4 | Evocalcet Tablets | Chemical Drug Class 4 | Treatment of secondary hyperparathyroidism (SHPT) in chronic kidney disease (CKD) patients on maintenance dialysis | Drug registration acceptance notice obtained | | 8 | Ebastine API | - | Used for allergic rhinitis with or without allergic conjunctivitis; symptomatic treatment of chronic idiopathic urticaria | Chemical API marketing application approval notice obtained in May 2025 | Information on Drugs with Sales Exceeding 10% of the Company's Main Business Revenue in the Reporting Period and Prior Year Period | Drug Name | Indications or Functions | Registration Category | | :--- | :--- | :--- | | Fosfomycin Trometamol Granules | Used for respiratory tract infections, lower urinary tract infections, intestinal infections, and skin and soft tissue infections caused by susceptible pathogens | Chemical Drug Class 6 | | Tamsulosin Hydrochloride Extended-Release Capsules | Used for urinary obstruction caused by benign prostatic hyperplasia | Chemical Drug Class 4 | II. Analysis of Core Competencies The company's core competencies stem from its "high-end pharmaceutical core, precision medicine and health food wings" strategy, featuring diversified product advantages, a stable self-operated sales team and national marketing network, stringent GMP-compliant quality control, and a strong R&D innovation capability primarily through independent research - The company has established a development strategy centered on "high-end pharmaceuticals as the core, with precision medicine and health foods as wings", offering a product line covering anti-infective drugs, urinary system drugs, smoking cessation drugs, pediatric drugs, and other areas[38] - The company possesses a stable self-operated sales team and network, employing a market-demand-oriented product marketing strategy, and has established an effective national marketing network through academic conferences and other means[40] - The company strictly adheres to GMP standards, controlling product quality comprehensively from R&D to after-sales service, and reinforcing routine GMP management through daily monitoring and special inspections[40] - The company has a professional R&D team and a comprehensive technological innovation system, with most consistency evaluation and generic drug projects developed independently, and has obtained multiple drug registration approvals and API marketing approval notices[41] III. Analysis of Main Business Operations During the reporting period, the company's main business operating revenue decreased by 7.01%, and net profit attributable to shareholders significantly dropped by 98.86%, primarily due to a subsidiary's supplementary tax payments, increased financial expenses, and higher income tax expenses, with anti-infective and urinary system drugs remaining key revenue drivers Year-on-Year Changes in Key Financial Data | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-on-year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 372,995,932.54 | 401,112,573.00 | -7.01% | | | Financial Expenses | 11,826,091.90 | 7,622,780.01 | 55.14% | Mainly due to increased bank loan interest during the reporting period | | Income Tax Expenses | 19,230,101.30 | 1,546,497.51 | 1,143.46% | Mainly due to supplementary payment of prior year income tax and other matters during the reporting period | | Net Cash Flow from Operating Activities | 22,483,410.56 | 60,473,663.78 | -62.82% | Mainly due to increased tax payments and decreased cash received from sales of goods and services during the reporting period | - During the reporting period, subsidiary Tibet Qianyuan made supplementary payments of corporate income tax of 8.4942 million Yuan and corresponding late fees of 5.5406 million Yuan for 2019-2023, totaling 14.0348 million Yuan, impacting the net profit attributable to shareholders by 8.4444 million Yuan in 2025[44] Information on Products or Services Accounting for Over 10% of the Company's Main Business Revenue | Product or Service | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin | Year-on-year Change in Operating Revenue | Year-on-year Change in Operating Cost | Year-on-year Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Anti-infective Drugs | 67,774,360.00 | 14,816,273.98 | 78.14% | -15.21% | -8.80% | -1.54% | | Urinary System Drugs | 103,258,251.36 | 28,046,106.53 | 72.84% | 18.73% | 14.14% | 1.09% | IV. Analysis of Non-Core Business Operations Non-core business contributions to total profit primarily came from non-operating income (government support funds) and other income (government grants), while non-operating expenses (late fees and non-current asset write-offs) were the main negative impacts, with investment income and asset impairment having minor effects Impact of Non-Core Business on Total Profit | Item | Amount (Yuan) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 113,156.56 | 0.32% | Mainly capital occupation fees received from non-financial enterprises | No | | Asset Impairment | 911,697.76 | 2.56% | Mainly reversal of inventory depreciation provisions | No | | Non-operating Income | 9,024,543.49 | 25.38% | Mainly government support funds received | Yes | | Non-operating Expenses | 4,430,200.21 | 12.46% | Mainly late fees and losses from destruction/scrapping of non-current assets | No | | Other Income | 2,349,598.39 | 6.61% | Mainly various government grants received | No | | Credit Impairment Losses | 510,134.82 | 1.43% | Mainly reversal of bad debt provisions for accounts receivable | No | V. Analysis of Assets and Liabilities At the end of the reporting period, total assets decreased by 3.32% and net assets attributable to shareholders decreased by 26.07%, with notable changes including reduced monetary funds due to equity transfer payments, increased construction in progress for new factory renovations, and a significant rise in long-term payables from equity repurchase obligations, while 130.95 million Yuan of assets are restricted by pledges or mortgages Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (Yuan) | Proportion of Total Assets | Amount at End of Prior Year (Yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 92,408,396.19 | 6.18% | 149,518,040.96 | 9.66% | -3.48% | Mainly due to the company's payment of equity transfer payables during the reporting period | | Inventories | 149,943,038.52 | 10.02% | 132,785,588.91 | 8.58% | 1.44% | | | Construction in Progress | 32,893,176.54 | 2.20% | 15,283,785.93 | 0.99% | 1.21% | Mainly due to new factory renovation projects added by the company | | Other Payables | 83,746,414.44 | 5.60% | 165,307,278.88 | 10.68% | -5.08% | Mainly due to a decrease in the company's equity transfer payables at the end of the reporting period | | Long-term Payables | 226,336,400.00 | 15.13% | 129,356,400.00 | 8.36% | 6.77% | Mainly due to an increase in the company's equity repurchase payables at the end of the reporting period | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (Yuan) | Amount Purchased in Current Period (Yuan) | Amount Sold in Current Period (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Receivables Financing | 28,217,773.52 | 90,748,231.00 | 84,674,238.25 | 34,291,766.27 | | Total Above | 28,217,773.52 | 90,748,231.00 | 84,674,238.25 | 34,291,766.27 | - As of the end of the reporting period, the total amount of restricted assets was 130,952,244.15 Yuan, primarily including pledged or frozen monetary funds, intangible assets, investment properties, and fixed assets[53] - The company's 100% equity in Hangzhou Baoling Group Co., Ltd., subsidiary Nantong Guangjia Pharmaceutical Co., Ltd.'s 36% equity in Jiangsu Jiayi Pharmaceutical Co., Ltd., and the company's 30% equity in Nantong Hengjia Pharmaceutical Co., Ltd. are all restricted due to pledges[53][54] VI. Analysis of Investment Status The company's investment amount increased by 149.68% year-on-year, with 228.1251 million Yuan cumulatively used from two private placements in 2020 and 2021, leaving a balance of 13.5767 million Yuan, while some fundraising projects were altered or terminated due to market changes or R&D delays, with funds reallocated to new drug R&D or permanent working capital Investment Amount During the Reporting Period | Indicator | Investment Amount in Reporting Period (Yuan) | Investment Amount in Prior Year Period (Yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Investment Amount | 23,039,484.39 | 9,227,675.94 | 149.68% | Overall Use of Raised Funds | Fundraising Year | Fundraising Method | Net Raised Funds (10,000 Yuan) | Total Cumulative Used Raised Funds (10,000 Yuan) | Total Unused Raised Funds (10,000 Yuan) | | :--- | :--- | :--- | :--- | :--- | | 2020 | Private Placement of Shares | 13,358.06 | 12,939.94 | 651.35 | | 2021 | Private Placement of Shares | 10,409.04 | 9,872.57 | 706.32 | | Total | | 23,767.10 | 22,812.51 | 1,357.67 | - The R&D progress of "New Drug R&D Project - Roxadustat and Capsules" has been delayed, with the estimated date of reaching its intended usable state extended to December 2026[63][68] - The "Hangzhou Qianyuan Baoling Pharmaceutical Co., Ltd. Annual Output of 300 Million Tablets Solid Preparation Production Line Technical Transformation Project" has been terminated due to Ebastine Tablets not winning centralized procurement and existing capacity meeting demand, with the remaining raised funds permanently supplementing working capital[63][67][68] - Some drug R&D projects were terminated due to the original drug not being approved or intense competition, and the 40.5 million Yuan R&D investment freed up will be used for other R&D projects[64][68] VII. Significant Asset and Equity Disposals During the reporting period, the company sold land use rights, properties, and attachments at No. 1378 Heng'an Street, Datong Economic and Technological Development Zone, to Shanxi Shuangyan Pharmaceutical Co., Ltd. for 7.8945 million Yuan to revitalize assets and optimize its structure, with no significant equity disposals Disposal of Significant Assets | Assets Disposed | Transaction Price (10,000 Yuan) | Related Party Transaction | Counterparty | Impact on Company's Net Profit | Disclosure Date | Disclosure Index | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Land use rights, properties, and buildings/attachments at No. 1378 Heng'an Street, Datong Economic and Technological Development Zone | 789.45 | No | Shanxi Shuangyan Pharmaceutical Co., Ltd. | Favorable for the company to revitalize assets and optimize asset structure | July 03, 2023 | Announcement No.: 2023-057 | - The company had no significant equity disposals during the reporting period[73] VIII. Analysis of Major Holding and Participating Companies The company's major holding subsidiaries, including Zhejiang Qianyuan Haisheng Pharmaceutical Co., Ltd., Tibet Qianyuan Pharmaceutical Co., Ltd., and Jiangsu Jiayi Pharmaceutical Co., Ltd., significantly impacted the company's net profit during the reporting period, with no acquisitions or disposals of subsidiaries Major Subsidiaries and Participating Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhejiang Qianyuan Haisheng Pharmaceutical Co., Ltd. | Subsidiary | Pharmaceuticals | 20 million Yuan | 368,188,305.91 | 245,804,293.61 | 148,692,065.83 | 36,716,957.65 | 29,848,366.55 | | Tibet Qianyuan Pharmaceutical Co., Ltd. | Subsidiary | Pharmaceuticals | 10 million Yuan | 266,804,313.92 | 45,565,338.56 | 208,066,124.93 | 3,811,592.06 | 2,303,853.50 | | Jiangsu Jiayi Pharmaceutical Co., Ltd. | Subsidiary | Pharmaceuticals | 187.72934737 million Yuan | 377,283,654.48 | 282,629,351.22 | 45,049,327.46 | 18,428,549.46 | 15,664,267.04 | - The company neither acquired nor disposed of any subsidiaries during the reporting period[74] IX. Information on Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[75] X. Risks Faced by the Company and Countermeasures The company faces risks from industry policies, drug R&D and consistency evaluation, drug price reductions, and rising raw material costs, which it addresses by actively monitoring policy changes, increasing R&D investment, optimizing product structure, and strengthening cost control and lean production - The company faces industry policy risks, such as healthcare reform policies, the "two-invoice system", and centralized procurement, which could significantly impact its operating environment[75] - The company faces drug R&D and consistency evaluation risks, with the possibility of failure or prolonged cycles for new drug development and generic drug consistency evaluation[75] - The company faces drug price reduction risks, as national medical insurance cost control and centralized volume-based procurement policies continue to compress drug profit margins[76] - The company faces risks of rising raw material costs, as increased national requirements for drug production standards and environmental standards may lead to higher raw material prices[76] - Countermeasures include actively assessing market changes, increasing high-end generic drug R&D investment, optimizing product structure, implementing cost control, and fully adopting lean production[75][76] XI. Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period During the reporting period, the company conducted three investor relations activities, including two online platform exchanges and one on-site visit, primarily discussing corporate governance, development strategy, operational status, and the marketing of the smoking cessation drug varenicline tartrate tablets - On April 30, 2025, the company engaged in online platform communication with individual investors, discussing corporate governance, development strategy, and operational status[79] - On May 15, 2025, the company conducted an on-site visit at its Shanghai office, hosting institutional investors to primarily discuss the marketing of the smoking cessation drug varenicline tartrate tablets[79] - On May 20, 2025, the company participated in the Shanxi jurisdiction listed companies' online collective investor reception day via an online platform, discussing corporate governance, development strategy, and operational status[79] XII. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan 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[80] - The company has not disclosed a valuation enhancement plan[80] XIII. Implementation of "Quality and Return Dual Improvement" Action Plan The company did not disclose an announcement regarding the "Quality and Return Dual Improvement" action plan during the reporting period - The company did not disclose an announcement regarding the "Quality and Return Dual Improvement" action plan[80] Section IV Corporate Governance, Environment, and Society This section details changes in the company's directors, supervisors, and senior management, profit distribution plans, implementation of equity incentive plans, environmental information disclosure, and social responsibility initiatives I. Changes in Company Directors, Supervisors, and Senior Management During the reporting period, Supervisory Board Chairman Zhu Haibo and Supervisors Zhang Xuhong and Zhang Hua resigned on May 7, 2025, due to work transfers - Supervisory Board Chairman Zhu Haibo resigned on May 07, 2025, due to work transfer[82] - Supervisors Zhang Xuhong and Zhang Hua resigned on May 07, 2025, due to work transfer[82] II. Profit Distribution and Capital Reserve Conversion to Share Capital in the Current Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[83] III. Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures In 2024, the company implemented a restricted stock incentive plan, granting 7.05 million restricted shares to 50 grantees at 4.73 Yuan/share, and subsequently repurchased and cancelled 0.35 million shares due to three grantees' departures, with 6.70 million shares remaining outstanding under the plan, representing 2.70% of total share capital - The company reviewed and approved the "2024 Restricted Stock Incentive Plan (Draft)" and its summary on May 16 and June 3, 2024[84] - The incentive plan proposed to grant 7.05 million Class I restricted shares to 50 grantees at a grant price of 4.73 Yuan/share, with the grant registration completed on July 25, 2024[84][85] - On September 6, 2024, due to the departure of 3 grantees, the company repurchased and cancelled 0.35 million restricted shares[86] - As of the end of the reporting period, the total number of underlying shares involved in all valid equity incentive plans was 6.70 million shares, accounting for 2.70% of the company's total share capital at period-end[86] IV. Environmental Information Disclosure The company and its three major subsidiaries (Zhejiang Qianyuan Haisheng Pharmaceutical Co., Ltd., Hangzhou Qianyuan Baoling Pharmaceutical Co., Ltd., and Jiangsu Jiayi Pharmaceutical Co., Ltd.) are all listed as legally required environmental information disclosure enterprises and have publicly disclosed their reports on their respective provincial ecological environment department systems - The company and its major subsidiaries, Zhejiang Qianyuan Haisheng Pharmaceutical Co., Ltd., Hangzhou Qianyuan Baoling Pharmaceutical Co., Ltd., and Jiangsu Jiayi Pharmaceutical Co., Ltd., are all included in the list of enterprises required to disclose environmental information by law[87] - Each subsidiary has publicly disclosed its reports on the enterprise environmental information disclosure system of the Zhejiang Provincial Ecological Environment Department or Jiangsu Provincial Ecological Environment Department[87] V. Social Responsibility The company demonstrates a strong sense of social responsibility by actively protecting shareholder and creditor rights, safeguarding employee welfare, maintaining commercial integrity with suppliers and consumers, and participating in social welfare initiatives, while ensuring compliant governance and contributing to society - The company strictly abides by laws and regulations, continuously improves its corporate governance structure, and effectively safeguards the legitimate rights and interests of its shareholders and creditors[88] - The company legally protects employees' legitimate rights and interests, focuses on employee health and safety, establishes a comprehensive compensation management system, and emphasizes talent development and professional quality training[88] - The company adheres to the business philosophy of "quality first, integrity", achieving mutual benefit with suppliers, customers, and consumers, and providing safe and effective medicines[90] - The company actively participates in social welfare undertakings, supporting local education, culture, science, health, and employment, caring for vulnerable groups, and paying taxes according to law[90] Section V Significant Matters This section covers the fulfillment of commitments by related parties, non-operating fund occupation, illegal external guarantees, auditor appointments, explanations for non-standard audit reports, bankruptcy reorganization, litigation, penalties, integrity status, significant related party transactions, and major contracts I. Fulfillment of Commitments by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During the Reporting Period and Unfulfilled Commitments at Period-End During the reporting period, company director and senior management Zhao Qun and senior management Yu Junxian strictly fulfilled their share lock-up commitments from the initial public offering, and commitments under the 2024 restricted stock incentive plan are being normally fulfilled, with no overdue unfulfilled commitments at period-end - Zhao Qun, as a company director and senior management, strictly adhered to the share lock-up commitments made during the initial public offering, with no violations reported as of the end of the reporting period[92] - Yu Junxian, as a company senior management and other core personnel, strictly adhered to the share lock-up commitments made during the initial public offering, with no violations reported as of the end of the reporting period[92] - The commitments made by the company and the grantees under the 2024 restricted stock incentive plan are being normally fulfilled[92] - Commitments fulfilled on time: Yes[93] II. Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties of the Listed Company During the reporting period, there was no non-operating occupation of the listed company's funds by controlling shareholders or other related parties - During the reporting period, there was no non-operating occupation of the listed company's funds by controlling shareholders or other related parties[94] III. Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[95] IV. Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[96] V. Explanations by the Board of Directors, Supervisory Board, and Audit Committee Regarding the Accounting Firm's "Non-Standard Audit Report" for the Current Reporting Period This explanation is not applicable for the current reporting period as the company's semi-annual financial report was not audited - Not applicable[97] VI. Board of Directors' Explanation Regarding the "Non-Standard Audit Report" for the Previous Year This explanation is not applicable for the current reporting period - Not applicable[97] VII. Bankruptcy and Reorganization Matters The company had no bankruptcy or reorganization-related matters during the reporting period - The company had no bankruptcy or reorganization-related matters during the reporting period[97] VIII. Litigation Matters The company had no significant litigation or arbitration matters, nor any other litigation matters, during the reporting period - The company had no significant litigation or arbitration matters during the reporting period[98] - The company had no other litigation matters during the reporting period[99] IX. Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[99] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the reporting period, there were no issues concerning the integrity status of the company, its controlling shareholder, or its actual controller - During the reporting period, there were no issues concerning the integrity status of the company, its controlling shareholder, or its actual controller[100] XI. Significant Related Party Transactions During the reporting period, the company had no related party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, related party creditor-debtor relationships, or other significant related party transactions with affiliated financial companies - The company had no related party transactions related to daily operations during the reporting period[100] - The company had no related party transactions involving asset or equity acquisitions/disposals during the reporting period[101] - The company had no related party creditor-debtor relationships during the reporting period[103] - The company had no other significant related party transactions during the reporting period[106] XII. Significant Contracts and Their Fulfillment The company had no entrustment, contracting, or leasing matters during the reporting period, but provided several significant guarantees for subsidiaries, totaling 225 million Yuan, representing 88.72% of its net assets, and also signed an asset sale contract with Shanxi Shuangyan Pharmaceutical Co., Ltd. for land use rights and properties - The company had no entrustment, contracting, or leasing situations during the reporting period[107][108][109] Company's Guarantee Situation for Subsidiaries | Name of Guaranteed Party | Guarantee Limit (10,000 Yuan) | Actual Guarantee Amount (10,000 Yuan) | Guarantee Type | Fulfilled | Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhejiang Qianyuan Haisheng Pharmaceutical Co., Ltd. | 5,000 | 3,200 | Joint and several liability guarantee | Yes | Yes | | Hangzhou Qianyuan Baoling Pharmaceutical Co., Ltd. | 4,000 | 3,500 | Joint and several liability guarantee | No | No | | Zhejiang Qianyuan Haisheng Pharmaceutical Co., Ltd. | 4,000 | 4,000 | Joint and several liability guarantee | No | No | | Nantong Guangjia Pharmaceutical Co., Ltd. | 15,000 | 15,000 | Joint and several liability guarantee | No | Yes | | Total Actual Guarantee Balance for Subsidiaries at Period-End | 23,000 | 22,500 | | | | | Proportion of Total Actual Guarantee Amount to Company's Net Assets | | | | | 88.72% | - The company signed an asset sale contract with Shanxi Shuangyan Pharmaceutical Co., Ltd. to sell land use rights, properties, and attachments for a transaction price of 66.1681 million Yuan[114] XIII. Explanation of Other Significant Matters During the reporting period, the company approved resolutions to revise its Articles of Association, waive pre-emptive rights for Jiayi Pharmaceutical and sign a shareholder agreement, establish the "Operating Management Executive Committee Work Rules" and appoint members, and revise certain management systems, while also noting that accumulated losses have reached one-third of paid-in capital and a "Directors and Senior Management Departure Management System" was formulated - The company approved resolutions to revise the "Articles of Association" and complete industrial and commercial change registration, as well as to waive pre-emptive rights for Jiayi Pharmaceutical and sign a shareholder agreement with new shareholders[116] - The company approved resolutions including the "2024 Annual Board of Directors' Work Report", "2024 Annual Report and its Summary", and "Company's 2024 Annual Financial Settlement Report"[116] - The company approved resolutions to formulate the "Operating Management Executive Committee Work Rules", appoint members of the Operating Management Executive Committee, and revise certain company management systems[116] - The company's accumulated losses have reached one-third of its paid-in capital, and it has formulated the "Directors and Senior Management Departure Management System"[117] XIV. Significant Matters of Company Subsidiaries During the reporting period, the company's subsidiary, Jiangsu Jiayi Pharmaceutical Co., Ltd., successfully passed its re-certification as a high-tech enterprise - Subsidiary Jiangsu Jiayi Pharmaceutical Co., Ltd. has successfully passed its re-certification as a high-tech enterprise[118] Section VI Share Changes and Shareholder Information This section details changes in the company's share capital, securities issuance, shareholder numbers, top ten shareholders, changes in director, supervisor, and senior management shareholdings, and any changes in controlling shareholders or actual controllers I. Share Capital Changes During the reporting period, the company's total share capital remained unchanged at 248,318,563 shares, with an increase of 30,000 restricted shares due to former Supervisory Board Chairman Zhu Haibo's departure and a corresponding decrease in unrestricted shares, with detailed restricted share information for major shareholders provided Share Capital Changes | Item | Number Before This Change (shares) | Proportion Before This Change | Increase/Decrease in This Change (shares) | Number After This Change (shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 23,071,968 | 9.29% | 30,000 | 23,101,968 | 9.30% | | II. Unrestricted Shares | 225,246,595 | 90.71% | -30,000 | 225,216,595 | 90.70% | | III. Total Shares | 248,318,563 | 100.00% | 0 | 248,318,563 | 100.00% | - The reason for the share change is that former Supervisory Board Chairman Mr. Zhu Haibo's shares are 100% locked for six months after his departure, as he is prohibited from transferring directly or indirectly held company shares during this period[121] Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period | Restricted Shares Increased in Current Period | Restricted Shares at End of Period | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Zhao Qun | 10,276,419 | 0 | 10,276,419 | Senior management lock-up shares, 2024 restricted stock incentive lock-up shares | | Huang Lequn | 4,098,795 | 0 | 4,098,795 | Senior management lock-up shares, 2024 restricted stock incentive lock-up shares | | Zhu Haibo | 90,000 | 30,000 | 120,000 | Supervisor lock-up shares | II. Securities Issuance and Listing The company had no securities issuance or listing activities during the reporting period - The company had no securities issuance or listing activities during the reporting period[126] III. Number of Shareholders and Shareholding Structure At the end of the reporting period, the total number of common shareholders was 22,001, with Weng Zhanguo holding the largest stake at 6.35%, and Zhao Qun and Huang Lequn acting as parties in concert, while some shareholders held company shares through margin trading and securities lending - The total number of common shareholders at the end of the reporting period was 22,001[127] Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at End of Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Weng Zhanguo | Domestic Natural Person | 6.35% | 15,772,409 | 0 | 15,772,409 | | Zhao Qun | Domestic Natural Person | 5.52% | 13,701,892 | 10,276,419 | 3,425,473 | | Huang Lequn | Overseas Natural Person | 2.20% | 5,465,060 | 4,098,795 | 1,366,265 | - Among the top 10 common shareholders, shareholders Zhao Qun and Huang Lequn are parties acting in concert[128] - Some of the top 10 common shareholders held company shares through margin trading and securities lending services[128] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, there were no significant changes in the shareholdings of the company's directors, supervisors, and senior management, with only the shareholdings of the resigned supervisors Zhu Haibo, Zhang Xuhong, and Zhang Hua recorded, where Zhu Haibo held 120,000 shares at period-end Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Status | Shares Held at Beginning of Period (shares) | Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | | Zhu Haibo | Chairman of Supervisory Board | Resigned | 120,000 | 120,000 | | Zhang Xuhong | Supervisor | Resigned | 0 | 0 | | Zhang Hua | Supervisor | Resigned | 0 | 0 | | Total | -- | -- | 120,000 | 120,000 | V. Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[131] - The company's actual controller remained unchanged during the reporting period[131] VI. Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[131] Section VII Bond-Related Information This section confirms that the company had no bond-related matters during the reporting period Bond-Related Information The company had no bond-related matters during the reporting period - Not applicable[133] Section VIII Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for both consolidated and parent company levels, along with notes on accounting policies, taxes, and financial risks I. Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[135] II. Financial Statements This section provides the company's 2025 semi-annual consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, comprehensively reflecting the company's financial position, operating results, and cash flows at period-end - Financial statements include 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[136][140][144][147][151][153][159] - Financial statements are denominated in Yuan and prepared as of June 30, 2025[136] 1. Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were 1.496 billion Yuan, a 3.32% decrease from the beginning of the period, with total current assets of 456.377 million Yuan, total non-current assets of 1.040 billion Yuan, total liabilities of 971.205 million Yuan, and total owners' equity of 525.175 million Yuan Consolidated Balance Sheet Key Data | Item | Ending Balance (Yuan) | Beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 1,496,381,241.42 | 1,547,725,078.17 | | Total Liabilities | 971,205,803.89 | 949,545,094.09 | | Total Owners' Equity Attributable to Parent Company | 253,595,732.99 | 342,998,882.45 | | Minority Interests | 271,579,704.54 | 255,181,101.63 | | Total Owners' Equity | 525,175,437.53 | 598,179,984.08 | - Monetary funds ending balance: 92,408,396.19 Yuan, accounts receivable: 132,674,931.36 Yuan, inventories: 149,943,038.52 Yuan[137] - Short-term borrowings ending balance: 130,919,141.55 Yuan, long-term borrowings: 167,000,000.00 Yuan, long-term payables: 226,336,400.00 Yuan[138][139] 2. Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were 1.524 billion Yuan, an increase from the beginning of the period, with total current assets of 200.390 million Yuan, total non-current assets of 1.324 billion Yuan, total liabilities of 827.584 million Yuan, and total owners' equity of 696.839 million Yuan Parent Company Balance Sheet Key Data | Item | Ending Balance (Yuan) | Beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 1,524,423,559.24 | 1,488,814,963.55 | | Total Liabilities | 827,584,033.91 | 792,107,634.01 | | Total Owners' Equity | 696,839,525.33 | 696,707,329.54 | - Monetary funds ending balance: 32,771,942.44 Yuan, accounts receivable: 90,973,567.15 Yuan, long-term equity investments: 1,236,720,407.04 Yuan[141] - Other payables ending balance: 612,550,448.96 Yuan, non-current liabilities due within one year: 127,125,973.21 Yuan[142] 3. Consolidated Income Statement For the first half of 2025, the company's consolidated total operating revenue was 372.995 million Yuan, a 7.01% year-on-year decrease, resulting in a net profit of 16.333 million Yuan and net profit attributable to parent company shareholders of 0.380 million Yuan, a significant 98.86% year-on-year decrease, with basic earnings per share of 0.0016 Yuan/share Consolidated Income Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | I. Total Operating Revenue | 372,995,932.54 | 401,112,573.00 | | III. Operating Profit (Loss indicated by "-") | 30,969,258.94 | 41,350,311.02 | | IV. Total Profit (Total loss indicated by "-") | 35,563,602.22 | 50,631,899.44 | | V. Net Profit (Net loss indicated by "-") | 16,333,500.92 | 49,085,401.93 | | 1. Net Profit Attributable to Parent Company Shareholders (Net loss indicated by "-") | 380,868.67 | 33,502,484.50 | | VIII. Earnings Per Share: (I) Basic Earnings Per Share | 0.0016 | 0.1387 | - Income tax expense for the current period was 19,230,101.30 Yuan, a significant increase from 1,546,497.51 Yuan in the prior year period[146] 4. Parent Company Income Statement For the first half of 2025, the parent company's operating revenue was 70.984 million Yuan, a 17.17% year-on-year decrease, resulting in an operating profit of