天目药业(600671) - 2025 Q2 - 季度财报

Section I Definitions Definitions of Common Terms This section defines key terms, ensuring clarity on professional and company-specific terminology for readers - The reporting period refers to January 1, 2025, to June 30, 2025[14] - Tianmu Pharmaceutical, the Company, and Company all refer to Hangzhou Tianmu Mountain Pharmaceutical Co., Ltd[14] - GMP refers to Good Manufacturing Practice for Pharmaceuticals[14] Section II Company Profile and Key Financial Indicators I. Company Information This section introduces the company's basic registration information, including its Chinese name, abbreviation, foreign name, and legal representative - The company's Chinese name is Hangzhou Tianmu Mountain Pharmaceutical Co., Ltd., abbreviated as Tianmu Pharmaceutical[13] - The company's legal representative is Liu Jiayong[13] II. Contact Person and Contact Information This section provides contact information for the company's Board Secretary and Securities Affairs Representative, facilitating investor communication - The Board Secretary is Dang Guojun, and the Securities Affairs Representative is Chen Guoxun[15] - The contact number is 0571-63722229, and the email address is tianmuyaoye@126.com[15] III. Introduction to Changes in Basic Information This section outlines the historical changes in the company's registered address and lists the current office address - The company's registered address changed to No. 18 Shangyang Road, Jinnan Street, Lin'an District, Hangzhou City, Zhejiang Province in November 2019[16] - The company's office address is Room 1803, Boya Times Center, Xiaoshan District, Hangzhou City, Zhejiang Province[16] IV. Introduction to Changes in Information Disclosure and Document Storage Locations This section specifies the company's designated information disclosure newspaper, the website address for the semi-annual report, and the report's storage location - The company's designated information disclosure newspaper is Securities Daily[17] - The website address for publishing the semi-annual report is **http://www.sse.com.cn**[17](index=17&type=chunk) V. Company Stock Overview This section provides the company's stock listing information, including stock type, listing exchange, stock abbreviation, code, and previous abbreviation - The company's stock is A-shares, listed on the Shanghai Stock Exchange, with stock abbreviation Tianmu Pharmaceutical and stock code 600671[18] - The previous stock abbreviation was ST Muyuan[18] VII. Key Accounting Data and Financial Indicators This section summarizes the company's key accounting data and financial indicators, reflecting its operating results and financial position, showing significant revenue growth and a return to profitability Key Accounting Data (January-June 2025 vs. Prior Year Period) | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (yuan) | 103,597,373.91 | 59,548,398.28 | 73.97 | | Total Profit (yuan) | 7,118,740.85 | -21,382,023.77 | Not applicable | | Net Profit Attributable to Shareholders of Listed Company (yuan) | 10,247,808.74 | -18,500,728.95 | Not applicable | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses (yuan) | 5,903,269.48 | -22,057,080.85 | Not applicable | | Net Cash Flow from Operating Activities (yuan) | -10,872,094.27 | -28,128,424.22 | 61.35 | Key Financial Indicators (January-June 2025 vs. Prior Year Period) | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.0842 | -0.1519 | Not applicable | | Diluted Earnings Per Share (yuan/share) | 0.0842 | -0.1519 | Not applicable | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (yuan/share) | 0.0485 | -0.1811 | Not applicable | | Weighted Average Return on Net Assets (%) | 17.8199 | -66.3401 | Not applicable | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | 10.2652 | -79.0925 | Not applicable | Assets and Liabilities Data (End of Current Period vs. End of Prior Year) | Indicator | End of Current Period (yuan) | End of Prior Year (yuan) | Change from End of Prior Year (%) | | :--- | :--- | :--- | :--- | | Net Assets Attributable to Shareholders of Listed Company | 62,631,693.54 | 52,383,884.80 | 19.56 | | Total Assets | 404,706,947.80 | 441,463,237.69 | -8.33 | VIII. Non-Recurring Gains and Losses Items and Amounts This section details the non-recurring gains and losses items and their amounts for the reporting period, totaling 4,344,539.26 yuan, primarily including other non-operating income and expenses, and government grants Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | -659,717.50 | | Government grants recognized in current profit or loss | 189,158.28 | | Other non-operating income and expenses apart from the above | 4,513,033.85 | | Other gains and losses items that meet the definition of non-recurring gains and losses | 3,095.89 | | Less: Income tax impact | 37.79 | | Impact on minority interests (after tax) | -299,006.53 | | Total | 4,344,539.26 | Section III Management Discussion and Analysis I. Description of the Company's Industry and Main Business Operations During the Reporting Period This section outlines the company's pharmaceutical manufacturing industry, core business, operating model, and market trends, emphasizing its strategic presence in drug manufacturing, distribution, medical training, and health - The company operates in the pharmaceutical manufacturing industry, with main businesses including R&D, manufacturing, and sales of traditional Chinese medicine, Western medicine, and raw materials, as well as drug distribution, medical technology training, equipment sales services, and the broader health sector[26][28][29] - The company holds 99 drug approval numbers, including 7 exclusive ones, focusing on the inheritance and innovation of classic traditional Chinese medicine formulas and breakthroughs in modern traditional Chinese medicine preparation technology[27][28] - The pharmaceutical industry is influenced by policies such as medical insurance cost control and centralized procurement, while the '14th Five-Year Plan' encourages pharmaceutical innovation and the development of traditional Chinese medicine, and the silver economy market size is projected to grow significantly, bringing new opportunities to the industry[33][34] (I) Main Businesses Engaged by the Company The company's business covers four major segments: pharmaceutical manufacturing, drug distribution, medical training, and the broader health sector, possessing multiple production bases and 99 drug approval numbers, actively promoting R&D and market expansion - The company owns two GMP-certified modern production bases in Hangzhou and Huangshan, holding a total of 99 drug approval numbers, with 7 being exclusive approval numbers[27][28] - Key products include Amoxicillin and Clavulanate Potassium Tablets, Liuwei Dihuang Oral Liquid, Heche Dazao Capsules, Menthol, Mentha Oil, and enjoy high market recognition[28] - The company achieves product innovation through a 'three-chain synergy' strategy (industry chain, innovation chain, supply chain), building a 'pyramid-shaped' product hierarchy and actively exploring online marketing platforms[28] (II) Company's Operating Model The company has established comprehensive procurement, production, and sales models, with centralized bidding and qualified supplier management for procurement, strict adherence to GMP standards for production, and both direct and distribution sales models, while expanding into drug distribution and medical device/training businesses - The procurement model adopts centralized bidding, evaluating suppliers across four dimensions: quality, technology, service, and price, to establish long-term stable strategic partnerships[31] - The production model strictly adheres to national Good Manufacturing Practice (GMP) requirements, covering the entire drug production process to ensure product quality, safety, and efficacy[31] - The sales model includes direct sales (directly to drug distribution enterprises and other terminals) and distribution (sales promotion through distributors), and has established Jiahe Pharmaceutical as a GSP-qualified sales platform[31][32] (III) Industry Development Status The pharmaceutical manufacturing industry, as a strategic sector, is driven by the "14th Five-Year Plan," traditional Chinese medicine quality improvement policies, and the development of the silver economy, moving towards innovation, high-quality development, and digital transformation - The '14th Five-Year Plan' encourages pharmaceutical innovation and R&D, the development of high-end preparation production technologies, and the promotion of traditional Chinese medicine reform and development[33] - The General Office of the State Council issued the 'Opinions on Improving the Quality of Traditional Chinese Medicine and Promoting High-Quality Development of the Traditional Chinese Medicine Industry', providing top-level design for the industry's development[33] - The silver economy market size is projected to grow to 30 trillion yuan by 2035, bringing new development opportunities for the pharmaceutical industry[34] II. Discussion and Analysis of Operations In the first half of 2025, the company focused on "stabilizing pharmaceuticals, promoting health, and turning losses into profits," achieving double-digit growth in revenue and net profit, successfully lifting the "ST" risk warning, and actively advancing work in production, channels, products, and management, revitalizing its operations - In the first half of the year, the company achieved operating revenue of 103.60 million yuan, a year-on-year increase of 73.97%, and net profit attributable to owners of the parent company of 10.25 million yuan, successfully turning losses into profits[37] - Effective May 20, 2025, the company successfully lifted the 'other risk warning', and its stock abbreviation changed from 'ST Muyuan' to 'Tianmu Pharmaceutical', marking its entry into a new phase of vitality[36][37] - In the first half of the year, the company made significant progress in strict control of production risks, improving channel construction, revitalizing dormant products, and optimizing its management system[37][38][39][40] (I) Strict Control of Production Risks, Solidifying the Foundation for Development The company strictly adheres to GMP management requirements, implementing full-chain quality management from raw material procurement to product release, obtaining 25 drug re-registration approval numbers in the first half of the year, and accelerating the construction of the Huangshan Tianmu capacity enhancement and technical transformation project - The company strictly adheres to GMP management requirements, implementing full-chain quality management for products to ensure a 100% ex-factory pass rate[37] - In the first half of the year, 25 drug re-registration approval numbers were obtained, and all other re-registration varieties have been accepted[38] - The main structure of the first phase of the Huangshan Tianmu capacity enhancement and technical transformation project was topped out in May 2025, with production expected by the end of 2026[38] (II) Improving Channel Construction, Expanding Market Space The company comprehensively promotes channel construction in pharmaceutical manufacturing, raw materials, drug distribution, and health product sales, effectively increasing market coverage and sales scale through self-built marketing networks, market segmentation, expanding professional pharmaceutical services, and online-offline integration - In pharmaceutical manufacturing, Jiahe Pharmaceutical was established to build a self-owned marketing network, forming a 'recruitment + agency' system to enhance national product coverage[38] - In drug distribution, Sanshentai Baofeng's business has expanded to traditional Chinese medicine clinics and halls in East China, South China, and other regions, offering services such as decoction preparation and delivery[39] - In health product sales, relying on northern and southern sales centers, the company actively participates in large marketing events, leverages shareholder resources, and expands e-commerce channels such as Taobao[39] (III) Market-Oriented Approach, Revitalizing Dormant Products The company is committed to the inheritance and innovation of traditional Chinese medicine, focusing on a "boutique traditional Chinese medicine" development strategy, re-evaluating and re-developing existing varieties, and accelerating the resumption of production and marketization of "dormant products" - The company focuses on revitalizing 'dormant products' such as Pearl Eye Drops, Compound Fresh Bamboo Juice Liquid, and Baihe Gujin Oral Liquid[40] - Research is conducted by integrating factors such as prescription, process, efficacy, and market, covering aspects like formulation, pharmacological activity, process optimization, and sensory evaluation, to accelerate the approval for resuming product production inspections[40] (IV) Optimizing Management System, Promoting Standardized Operations The company comprehensively enhances its overall management level and standardized operation capabilities by optimizing management systems, streamlining approval processes, deepening organizational synergy, and strengthening subsidiary supervision and management - The management team promotes optimization of management systems, streamlines approval processes, and improves business circulation efficiency[40] - Through regular operational meetings and special conferences, the company deepens organizational synergy and clarifies responsibilities[40] - The company continuously strengthens supervision and management of subsidiaries, conducts self-inspections of system and process construction, utilizes internal audit functions, and promotes standardized operations of subsidiaries[40] III. Analysis of Core Competitiveness During the Reporting Period Leveraging its profound historical heritage, rich drug approval documents, professional marketing team, and strict quality management system, the company has formed four core competitive advantages: brand, product, marketing, and quality - The company owns well-known brands such as 'Tianmu Mountain,' 'Xin'an River,' and 'Huangshan,' with 'Tianmu Mountain Traditional Chinese Medicine Culture' listed as an intangible cultural heritage of Zhejiang Province, demonstrating strong brand influence[41] - The company holds 99 drug approval numbers and 5 health product approval numbers, with 67 varieties included in the medical insurance catalog, and possesses multiple national exclusive varieties, forming a comprehensive product line[41] - Leveraging the opportunity of state-owned capital entry, the company has assembled an experienced management team, established northern and southern sales centers, and continuously expanded marketing channels by relying on Qingdao state-owned assets resources and local policies[42][43] - The company adheres to the principle of 'quality first, brand paramount,' possessing standard production workshops certified by national GMP and comprehensive quality testing equipment[43] IV. Major Operating Conditions During the Reporting Period This section analyzes the company's financial statement item changes, the impact of non-core businesses on profit, asset and liability status, and investment activities, revealing improvements in operating performance, adjustments in asset structure, and strategic investment布局 - Operating revenue increased by 73.97% year-on-year, primarily due to increased revenue from Huangshan Tianmu, Qingdao Tianmu Mountain, and Sanshentai Baofeng[44] - Net cash flow from operating activities increased by 61.35% year-on-year, mainly due to an increase of 32.43 million yuan in cash received from sales of goods and provision of services[44] - Changes in non-core business profit primarily stemmed from 2.99 million yuan in relocation subsidies and 1.57 million yuan in debt restructuring gains for Huangshan Tianmu[46] (I) Analysis of Main Business Operations The company's main business revenue and costs both increased significantly, with operating revenue growing by 73.97%, primarily driven by contributions from Huangshan Tianmu, Qingdao Tianmu Mountain, and Sanshentai Baofeng, and a notable improvement in net cash flow from operating activities Analysis of Changes in Financial Statement Items (Current Period vs. Prior Year Period) | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 103,597,373.91 | 59,548,398.28 | 73.97 | | Operating Cost | 59,951,092.44 | 43,458,675.67 | 37.95 | | Selling Expenses | 6,399,486.78 | 4,554,216.37 | 40.52 | | Administrative Expenses | 29,653,362.27 | 31,789,446.65 | -6.72 | | Financial Expenses | 3,214,080.59 | 4,260,602.06 | -24.56 | | R&D Expenses | 0.00 | 106,796.12 | -100.00 | | Net Cash Flow from Operating Activities | -10,872,094.27 | -28,128,424.22 | 61.35 | | Net Cash Flow from Investing Activities | -19,598,473.16 | -9,977,465.06 | -96.43 | | Net Cash Flow from Financing Activities | -2,629,198.95 | -7,580,475.03 | 65.32 | - The change in operating revenue was primarily due to increases of 9.08 million yuan from Huangshan Tianmu, 12.92 million yuan from Qingdao Tianmu Mountain, and 4.54 million yuan from Sanshentai Baofeng[44] - The change in net cash flow from operating activities was mainly due to an increase of 32.43 million yuan in cash received from sales of goods and provision of services compared to the prior year period[44] (II) Explanation of Significant Profit Changes Caused by Non-Core Businesses During the reporting period, significant changes in the company's profit were partly due to non-core businesses, primarily including relocation subsidies and debt restructuring gains, which positively impacted the company's profit - The listed company and Huangshan Tianmu received a total of 2.99 million yuan in relocation subsidies[46] - Huangshan Tianmu realized 1.57 million yuan in debt restructuring gains[46] (III) Analysis of Assets and Liabilities The company's asset and liability structure underwent several changes at the end of the reporting period, with a decrease in monetary funds, a significant increase in accounts receivable and construction in progress, and a substantial decrease in taxes payable and other payables, reflecting adjustments in the company's operating and investment activities Changes in Assets and Liabilities (End of Current Period vs. End of Prior Year) | Item Name | End of Current Period Amount (yuan) | Proportion of Total Assets at End of Current Period (%) | End of Prior Year Amount (yuan) | Proportion of Total Assets at End of Prior Year (%) | Change from End of Prior Year (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 25,367,141.74 | 6.27 | 65,724,985.87 | 14.89 | -61.40 | | Accounts Receivable | 113,431,446.03 | 28.03 | 96,565,118.72 | 21.87 | 17.47 | | Construction in Progress | 9,093,268.10 | 2.25 | 1,253,350.94 | 0.28 | 625.52 | | Taxes Payable | 4,343,460.18 | 1.07 | 15,659,645.82 | 3.55 | -72.26 | | Other Payables | 19,766,084.80 | 4.88 | 35,019,264.50 | 7.93 | -43.56 | | Total Equity Attributable to Parent Company Shareholders | 62,631,693.54 | 15.48 | 52,383,884.80 | 11.87 | 19.56 | - Monetary funds decreased by 61.40%, mainly due to payments for purchases and various renovation projects[47] - Construction in progress increased by 625.52%, primarily due to an increase of 7.84 million yuan in project investments by wholly-owned subsidiary Huangshan Tianmu[47] - Total restricted assets at period-end amounted to 59,850,279.73 yuan, mainly comprising bank acceptance bill deposits, engineering payment guarantee deposits, bank guarantee deposits, and fixed assets and intangible assets pledged for loans[50] (IV) Investment Analysis The company engaged in equity and non-equity investments, including a 50 million yuan capital increase to wholly-owned subsidiary Huangshan Tianmu to boost production capacity, and the joint establishment of Jiahe Pharmaceutical with a partner, acquiring control, while also advancing the Lin'an Pharmaceutical Center plant relocation and renovation project - The company increased capital in its wholly-owned subsidiary Huangshan Tianmu by 50 million yuan using its own funds, raising the registered capital to 80 million yuan, to promote capacity enhancement and technical transformation project construction[51] - The company, through its wholly-owned subsidiary Huangshan Tianmu, jointly invested with a partner to establish Jiahe Pharmaceutical, with Huangshan Tianmu holding 42% equity, and acquired control of Jiahe Pharmaceutical by signing a 'Concerted Action Agreement' with Kanghe Technology, thus including it in the consolidated financial statements[52][53][58] - The first phase of the Lin'an Pharmaceutical Center plant relocation and renovation project has invested over 47.30 million yuan, with Amoxicillin and Clavulanate Potassium Tablets having resumed production and sales, and the re-production of Pearl Eye Drops is being actively promoted[56] (VI) Analysis of Major Holding and Associate Companies This section lists the basic information and financial data of the company's major holding subsidiaries, including their business nature, registered capital, total assets, net assets, operating revenue, operating profit, and net profit, and explains the reason for including Jiahe Pharmaceutical in the consolidated financial statements Financial Performance of Major Subsidiaries (Unit: yuan) | Company Name | Company Type | Main Business | Registered Capital (yuan) | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Operating Profit (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Huangshan Tianmu Pharmaceutical Co., Ltd. | Subsidiary | Traditional Chinese Medicine Preparations, Proprietary Chinese Medicines | 80,000,000 | 96,137,100 | 13,341,000 | 13,853,600 | -1,841,900 | 74,100 | | Huangshan Tianmu Mentha Pharmaceutical Co., Ltd. | Subsidiary | Raw Materials, Menthol, Mentha Oil | 9,750,000 | 82,172,300 | 27,919,500 | 16,557,100 | -358,200 | -376,300 | | Hangzhou Sanshentai Baofeng Traditional Chinese Medicine Co., Ltd. | Subsidiary | Traditional Chinese Medicine Wholesale, Economic Information Consulting, etc. | 1,000,000 | 45,232,600 | 13,569,700 | 21,375,200 | -964,200 | -816,700 | | Shanghai Tianmu Mountain Pharmaceutical Technology Co., Ltd. | Subsidiary | Pharmaceutical Wholesale | 3,000,000 | 3,797,800 | 2,937,600 | 3,450,100 | 1,525,500 | 1,555,600 | | Qingdao Simulation Medical Technology Co., Ltd. | Subsidiary | Medical Training | 50,000,000 | 61,523,200 | 22,540,700 | 335,600 | -7,638,000 | -7,644,300 | | Qingdao Tianmu Mountain Medical Technology Co., Ltd. | Subsidiary | Medical Device Sales, Medical Device Operations | 20,000,000 | 22,684,400 | 12,098,900 | 2,952,900 | 1,602,900 | 1,642,500 | | Qingdao Tianmu Mountain Health Technology Co., Ltd. | Subsidiary | Pharmaceutical, Health Product Sales | 3,000,000 | 73,415,200 | 15,143,700 | 13,211,500 | 4,300,300 | 3,421,600 | | Zhejiang Jiahe Kangyuan Pharmaceutical Co., Ltd. | Subsidiary | Pharmaceutical Wholesale | 10,000,000 | 12,433,500 | 3,099,000 | 1,201,300 | 49,100 | 99,000 | - Jiahe Pharmaceutical was included in Tianmu Pharmaceutical's consolidated financial statements after Huangshan Tianmu signed a 'Concerted Action Agreement' with Kanghe Technology, granting the company 63% of its voting rights and a majority of board seats[58] V. Other Disclosure Matters This section details six major categories of risks the company may face, including policy, product R&D, product quality, concentration of leading products, accounts receivable, environmental, and safety risks, and outlines the company's strategies and measures to address these risks - The company faces policy risks, such as adjustments to the medical insurance catalog and medical insurance payment reforms, which may affect product entry into clinical pathways[59][60] - Product R&D is characterized by long cycles, high difficulty, and significant investment, posing risks such as inability to launch successfully, extended cycles, and loss of key technologies or talent[60] - Leading products (such as Liuwei Dihuang Oral Liquid, Heche Dazao Capsules, etc.) are relatively concentrated, and their production and sales status directly determine the company's revenue and profitability, posing performance fluctuation risks[60] - Accounts receivable increase with business growth, posing the risk of bad debts; the company has adopted measures such as strengthening assessments, regular reconciliation, and strict credit management to control this risk[61] (I) Potential Risks The company identified and disclosed six major risks, including policy adjustments, R&D failures, product quality issues, reliance on leading products, accounts receivable bad debts, and environmental and safety incidents, emphasizing proactive response and management measures - Policy risk: Normalization of adjustments to the medical insurance catalog and essential drug catalog, and medical insurance payment reforms may prevent the company's products from entering corresponding disease or diagnosis-related group clinical pathways[59][60] - Product R&D risk: Long cycle, high difficulty, and significant investment, with risks such as inability to launch successfully, extended cycles, and loss of key technologies or talent[60] - Risk of concentrated leading products: Abnormal fluctuations in the production and sales of leading products such as Liuwei Dihuang Oral Liquid and Heche Dazao Capsules will have a significant impact on the company's performance[60] - Environmental and safety risks: Increased national environmental supervision, with pharmaceutical enterprises facing higher environmental standardization management and pollution prevention requirements, posing risks of environmental accidents and production safety incidents[62] Section IV Corporate Governance, Environment, and Society I. Changes in Directors, Supervisors, and Senior Management During the reporting period, Mr. Yu Hongjian resigned as a director, deputy general manager, and CFO due to work adjustments; the board appointed Mr. Leng Liang as deputy general manager and Ms. Wang Yihui as CFO, and Ms. Wang Yihui was elected as a non-independent director - Mr. Yu Hongjian resigned from his positions as company director, deputy general manager, and CFO[65] - Mr. Leng Liang was appointed as deputy general manager, and Ms. Wang Yihui was appointed as CFO[65] - Ms. Wang Yihui was elected as a non-independent director of the company's twelfth board of directors[66] II. Profit Distribution or Capital Reserve Conversion Plan The company has no profit distribution or capital reserve conversion plan applicable for this semi-annual report - This semi-annual report does not include a profit distribution plan or a capital reserve to share capital conversion plan[67] III. Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, the company had no disclosed equity incentive, employee stock ownership plans, or other employee incentive measures with subsequent progress or changes - During the reporting period, the company had no progress or changes related to equity incentive plans, employee stock ownership plans, or other employee incentive measures[68] IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law The company and two major subsidiaries are included in the list of enterprises required to disclose environmental information by law, with information disclosed through the National Pollutant Discharge Permit Management Information Platform and Anhui Province Enterprise Environmental Information Disclosure System - A total of 3 enterprises, including the company, Huangshan Tianmu Mentha Pharmaceutical Co., Ltd., and Huangshan Tianmu Pharmaceutical Co., Ltd., are included in the list of enterprises required to disclose environmental information by law[69] - Environmental information disclosure reports can be accessed through the National Pollutant Discharge Permit Management Information Platform and the Anhui Province Enterprise Environmental Information Disclosure System[69] V. Specific Progress in Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, and Other Initiatives During the reporting period, the company had no specific progress to disclose regarding consolidating and expanding poverty alleviation achievements, rural revitalization, or other related initiatives - During the reporting period, the company had no specific progress in consolidating and expanding poverty alleviation achievements, rural revitalization, or other related initiatives[70] Section V Significant Matters I. Fulfillment of Commitments The company's controlling shareholder, Huilong Huaze/Jinjialing Holding Group, and other related parties strictly fulfilled commitments regarding resolving horizontal competition, related-party transactions, and maintaining company independence during the reporting period; Yuanjia Medical also fulfilled its share lock-up commitment - Controlling shareholder Huilong Huaze/Jinjialing Holding Group committed not to engage in business activities that compete with the listed company and has strictly fulfilled this commitment[72] - The controlling shareholder committed to minimize or reduce related-party transactions with the listed company and its subsidiaries, ensuring adherence to the principles of openness, fairness, and impartiality in market transactions, and has strictly fulfilled this commitment[72][73] - Yuanjia Medical committed not to transfer its shares in Tianmu Pharmaceutical within 18 months from November 1, 2023, and has strictly fulfilled this commitment[74] II. Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties During the Reporting Period During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties - During the reporting period, the company was not subject to non-operating fund occupation by its controlling shareholder or other related parties[7] III. Irregular Guarantees During the reporting period, the company did not provide external guarantees in violation of prescribed decision-making procedures - During the reporting period, the company did not provide external guarantees in violation of prescribed decision-making procedures[8] IV. Semi-Annual Report Audit Status This semi-annual report is unaudited - This semi-annual report is unaudited[4] V. Changes and Handling of Matters Related to Non-Standard Audit Opinions in the Prior Year's Annual Report During the reporting period, there were no changes or handling of matters related to non-standard audit opinions in the prior year's annual report - Not applicable to changes and handling of matters related to non-standard audit opinions in the prior year's annual report[77] VI. Bankruptcy and Reorganization Matters During the reporting period, the company had no bankruptcy and reorganization matters - Not applicable to bankruptcy and reorganization matters[77] VII. Major Litigation and Arbitration Matters During the reporting period, the company had no major litigation or arbitration matters - The company had no major litigation or arbitration matters during this reporting period[77] VIII. Alleged Violations, Penalties, and Rectification by the Listed Company, Its Directors, Supervisors, Senior Management, Controlling Shareholder, and Actual Controller During the reporting period, the listed company, its directors, supervisors, senior management, controlling shareholder, and actual controller had no alleged violations, penalties, or rectification situations - Not applicable to alleged violations, penalties, and rectification situations involving the listed company, its directors, supervisors, senior management, controlling shareholder, and actual controller[77] IX. Explanation of the Integrity Status of the Company, Its Controlling Shareholder, and Actual Controller During the Reporting Period During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no instances of unfulfilled effective court judgments or large overdue debts - During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no instances of unfulfilled effective court judgments or large overdue debts[77] X. Significant Related-Party Transactions This section discloses the company's related-party transactions involving sales of goods in ordinary operations during the reporting period, including transaction amounts and comparisons with estimated amounts - The company's sales of goods to related parties totaled 14.02 million yuan in the first half of 2025, representing 36.22% of the estimated total of 38.70 million yuan[78][79] - Major related-party sales recipients include **Hangzhou Dehetang Sanshentai Traditional Chinese Medicine