新华医疗(600587) - 2025 Q2 - 季度财报

Important Notes Statement from the Board of Directors, Board of Supervisors, and Senior Management The company's management guarantees the truthfulness, accuracy, and completeness of the semi-annual report and assumes legal responsibility - The Board of Directors, Board of Supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report and assume legal responsibility[5] - All company directors attended the Board of Directors meeting[6] - This semi-annual report is unaudited[7] Statement from the Head of Financial Reporting The company's responsible persons declare the truthfulness, accuracy, and completeness of the financial report - The company's responsible person, head of accounting, and head of the accounting department declare they guarantee the truthfulness, accuracy, and completeness of the financial report[7] Profit Distribution or Capitalization of Capital Reserves Plan The Board of Directors did not approve any profit distribution or capitalization of capital reserves plan during the reporting period - There is no profit distribution or capitalization of capital reserves plan for the reporting period[8] Risk Disclosure for Forward-Looking Statements Forward-looking statements in the report are subject to uncertainties and do not constitute substantive commitments to investors - Forward-looking statements in the report involve uncertainties and do not constitute substantive commitments, and investors should be aware of investment risks[9] Misappropriation of Funds by Controlling Shareholders and Affiliates The company confirms no non-operational misappropriation of funds by controlling shareholders or their affiliates occurred during the period - There was no non-operational misappropriation of funds by controlling shareholders or other related parties[10] External Guarantees The company did not provide any external guarantees in violation of established decision-making procedures during the reporting period - There were no external guarantees provided in violation of prescribed decision-making procedures[10] Directors' Guarantee of the Report's Authenticity, Accuracy, and Completeness All directors of the company guarantee the truthfulness, accuracy, and completeness of the semi-annual report - There is no situation where more than half of the directors cannot guarantee the truthfulness, accuracy, and completeness of the report[10] Significant Risk Warning No significant risks with a substantial impact on operations were identified, with details provided in the Management Discussion and Analysis - There were no particularly significant risks with a substantial impact during the reporting period; for specific risks, please refer to Section 3, Management Discussion and Analysis[10] Section 1 Definitions Definitions of Common Terms This section defines common terms used in the report to ensure clear understanding of its content - This section defines key terms used in the report, such as "the Company" referring to Shandong Shinva Medical Instrument Co, Ltd, and "Shandong Health" referring to Shandong Health Industry Group Co, Ltd[15] Section 2 Company Profile and Key Financial Indicators Company Information This section discloses the company's basic registration information Company Basic Information | Indicator | Content | | :--- | :--- | | Company's Chinese Name | 山东新华医疗器械股份有限公司 | | Company's Chinese Abbreviation | 新华医疗 | | Company's English Name | Shinva Medical Instrument Co,Ltd | | Company's English Abbreviation | SHINVA | | Company's Legal Representative | Wang Yuquan | Contact Persons and Methods This section provides contact information for the company's Board Secretary and Securities Affairs Representative Company Contact Information | Position | Board Secretary | Securities Affairs Representative | | :--- | :--- | :--- | | Name | Li Caixiang | Li Jing | | Contact Address | Shinva Medical Science and Technology Park, Zibo National New & Hi-tech Industrial Development Zone, Shandong Province | Shinva Medical Science and Technology Park, Zibo National New & Hi-tech Industrial Development Zone, Shandong Province | | Telephone | 0533-3587766 | 0533-3587766 | | Fax | 0533-3587768 | 0533-3587768 | | Email | shinva@163.com | shinva@163.com | Changes in Basic Information The company's registered and office addresses remained unchanged during the reporting period - The company's registered and office addresses did not change and remain at Shinva Medical Science and Technology Park, Zibo National New & Hi-tech Industrial Development Zone, Shandong Province[19] Changes in Information Disclosure and Report Availability The designated website and location for the company's semi-annual report remained unchanged - The designated website for the company's semi-annual report is www.sse.com.cn, and the report is available at the company's securities department, with no changes during the period[21] Company Stock Profile The company's A-shares are listed on the Shanghai Stock Exchange under the stock code 600587 Company Stock Information | Stock Type | Stock Exchange | Stock Ticker | Stock Code | Previous Stock Ticker | | :--- | :--- | :--- | :--- | :--- | | A-Share | Shanghai Stock Exchange | Shinva Medical | 600587 | | Key Accounting Data and Financial Indicators Revenue and net profit declined year-over-year, while net cash flow from operating activities grew significantly Key Accounting Data (Jan-Jun 2025 vs Same Period Last Year) | Key Accounting Data | Current Period (Jan-Jun) | Same Period Last Year | Change YoY (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 4,790,414,888.01 | 5,186,552,479.09 | -7.64 | | Total Profit | 454,476,869.54 | 567,473,647.79 | -19.91 | | Net Profit Attributable to Shareholders | 385,717,607.04 | 484,262,168.63 | -20.35 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 332,742,127.52 | 473,649,164.58 | -29.75 | | Net Cash Flow from Operating Activities | 242,751,249.85 | 137,257,876.10 | 76.86 | Key Financial Indicators (Jan-Jun 2025 vs Same Period Last Year) | Key Financial Indicators | Current Period (Jan-Jun) | Same Period Last Year | Change YoY (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/Share) | 0.64 | 0.99 | -35.35 | | Diluted Earnings Per Share (Yuan/Share) | 0.64 | 0.99 | -35.35 | | Basic EPS (Excluding Non-recurring Items) (Yuan/Share) | 0.55 | 0.97 | -43.30 | | Weighted Average Return on Equity (%) | 4.99 | 6.50 | Decreased by 1.51 percentage points | | Weighted Average ROE (Excluding Non-recurring Items) (%) | 4.30 | 6.35 | Decreased by 2.05 percentage points | - The year-over-year decrease in net profit attributable to shareholders was primarily due to lower revenue in the current reporting period[25] - Net cash flow from operating activities increased by 76.86% year-over-year, mainly due to a decrease in cash paid for goods and services[25] Non-recurring Profit and Loss Items and Amounts Non-recurring profit and loss totaled 52,975,479.52 Yuan, mainly from asset disposals, government grants, and impairment reversals Non-recurring Profit and Loss Items and Amounts | Non-recurring Profit and Loss Item | Amount (Yuan) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | 47,743,946.36 | | Government Grants Recognized in Current Profit or Loss | 8,451,177.95 | | Fund Occupation Fees from Non-financial Enterprises Recognized in Current Profit or Loss | 525,296.27 | | Reversal of Impairment Provision for Individually Tested Receivables | 4,181,278.64 | | Other Non-operating Income and Expenses | -162,998.06 | | Less: Income Tax Effect | 6,897,940.05 | | Minority Interest Effect (After Tax) | 865,281.59 | | Total | 52,975,479.52 | Net Profit After Deducting Share-based Payments Net profit after deducting share-based payments was 389,345,216.33 Yuan, a year-over-year decrease of 20.93% Net Profit After Deducting Share-based Payments | Key Accounting Data | Current Period (Jan-Jun) | Same Period Last Year | Change YoY (%) | | :--- | :--- | :--- | :--- | | Net Profit After Deducting Share-based Payments | 389,345,216.33 | 492,425,040.58 | -20.93 | Section 3 Management Discussion and Analysis Description of the Company's Industry and Main Business During the Reporting Period The company operates in the medical equipment manufacturing industry, which is driven by innovation and regulatory development Industry Overview The medical device industry is experiencing rapid growth supported by favorable policies and technological advancements - In 2024, domestic medical device manufacturers' revenue reached 1.35 trillion Yuan, with R&D intensity remaining above 4% and over 50,000 invention patents granted[29] - The medical device market is projected to exceed 1.8 trillion Yuan by 2030, becoming a key hub in the global innovation ecosystem[29] - The National Medical Products Administration released the "Guiding Principles for the Registration and Review of Artificial Intelligence Medical Devices," accelerating the commercialization of AI imaging products[30] - The National Healthcare Security Administration initiated the 11th round of centralized procurement for high-value medical consumables, emphasizing "clinical choice" to favor high-quality products[30] - The company is the president unit of the China Association for Medical Devices Industry and has developed high-end products like the world's first peracetic acid low-temperature sterilizer and China's first high-energy medical electron linear accelerator[31] Main Business Description The company's main business comprises four segments: medical devices, pharmaceutical equipment, medical services, and medical commerce - The company focuses on two core manufacturing businesses, "medical devices and pharmaceutical equipment," complemented by a "medical services and medical commerce" chain, forming a "2+2" business structure[33] - The medical device segment has formed nine product lines, including infection control, radiotherapy and imaging, surgical instruments and consumables, and in-vitro diagnostic reagents and instruments[33] - Infection control equipment and consumables continue to advance intelligent integrated projects, with the Smart Central Sterile Supply Department project now covering 12 provinces and municipalities nationwide[33] - In radiotherapy and imaging, the key new product, the "Intelligent Ring-mounted Linac," obtained its national Class III medical device registration certificate in April and has entered full market promotion[34] - The surgical and cleanroom product line was expanded with registration certificates for four products, including a fluorescence endoscopy cold light source and a 3D fluorescence endoscopy image processor, achieving CE certification and sales[35] - In in-vitro diagnostics, the SGH-400 Glycated Hemoglobin Analyzer using high-performance liquid chromatography and an anti-human globulin test kit (aqueous gel method) were certified, achieving domestic substitution of key materials[37] - The pharmaceutical equipment segment adheres to an "internationalization" strategy, launching China's first pre-filled syringe filling line compatible with various dual-chamber packaging materials, with contract values for non-PVC soft bag automatic inspection machines reaching a new high[38] Business Model The company's business model integrates sales, procurement, production, and R&D with a focus on market expansion and innovation - The sales model follows a dual-circulation development pattern, with eleven regional sales centers in China and five overseas centers[41] - The procurement model is based on sales plans and orders, selecting qualified suppliers based on quality, price, and delivery speed[41] - The production model is market-oriented and built-to-order, promoting a lean production management system and innovating with a "pulsating production line" model[42] - The R&D model operates a "Technology Center + Innovation Center" dual-center system, driven by both market demand and core technology, while actively exploring an "AI + Equipment" innovation model[43] Discussion and Analysis of Operating Performance The company's revenue and net profit decreased due to lower sales, while R&D investment increased to drive innovation H1 2025 Operating Results | Indicator | Current Period Amount (10k Yuan) | Same Period Last Year Amount (10k Yuan) | Change YoY (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 479,041.49 | 518,655.25 | -7.64 | | Net Profit Attributable to Shareholders | 38,571.76 | 48,426.22 | -20.35 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 33,274.21 | 47,364.92 | -29.75 | - During the reporting period, the company's R&D investment reached 202 million Yuan, an increase of 8.88% year-over-year[45] - The company globally launched its intelligent ring-mounted online adaptive radiotherapy system and introduced key new products like a new generation steam sterilizer and a pulsating vacuum washer-disinfector[46] - Artificial intelligence is empowering product upgrades, with the successful launch of laboratory series products like the fully automated microbial colony picking workstation and the "Huazhi CSSD Large Model" covering over 1,200 industry standards[47] - The "Multi-modal Image-guided Spherical Radiotherapy System" project, led by the company under the Ministry of Science and Technology's National Key R&D Program, has entered the type testing phase[48] - During the period, the company was granted 70 new patents (including 16 invention patents), bringing the cumulative total to 3,884, and obtained 14 new medical device registration certificates (including 3 Class III certificates)[49] - The company is actively promoting ERP business-finance integration and financial sharing projects, and has independently developed SRM and unified CRM systems to support its digital transformation[50] Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness did not undergo significant changes during the reporting period - There were no significant changes in the company's core competitiveness during the reporting period; for details, please refer to the company's 2024 annual report[51] Main Operating Activities During the Reporting Period This section analyzes key operational aspects, including financial statement changes and asset and liability conditions Main Business Analysis Revenue and costs decreased due to reduced medical commerce activities, while financial expenses rose due to lower interest income Analysis of Changes in Financial Statement Items | Item | Current Period (Yuan) | Same Period Last Year (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 4,790,414,888.01 | 5,186,552,479.09 | -7.64 | | Operating Costs | 3,582,676,003.81 | 3,804,148,405.05 | -5.82 | | Selling Expenses | 387,744,638.85 | 408,907,787.67 | -5.18 | | Administrative Expenses | 178,062,225.44 | 197,507,985.46 | -9.85 | | Financial Expenses | 14,183,904.31 | 7,564,370.85 | 87.51 | | R&D Expenses | 201,713,769.93 | 185,268,605.71 | 8.88 | | Net Cash Flow from Operating Activities | 242,751,249.85 | 137,257,876.10 | 76.86 | - Reason for change in operating revenue: Primarily due to a decrease in revenue from the company's medical commerce products during the period[53] - Reason for change in financial expenses: Primarily due to a decrease in interest income during the period[55] - Reason for change in net cash flow from operating activities: Primarily due to a decrease in cash paid for goods and services during the period[55] Explanation of Significant Profit Changes from Non-core Business The company increased its investment income by transferring a 55% equity stake in a subsidiary - In May 2025, the company publicly transferred a 55% equity stake in Shandong Shinva Changguo Hospital Investment Management Co, Ltd, which increased investment income[56] Analysis of Assets and Liabilities The company's asset and liability structure remained stable, with notable changes in financial assets and construction in progress Changes in Asset and Liability Position (End of Current Period vs End of Last Year) | Item | Current Period-End (Yuan) | % of Total Assets | Prior Year-End (Yuan) | % of Total Assets | Change from Prior Year-End (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Assets Attributable to Shareholders | 7,856,077,479.77 | - | 7,597,127,229.99 | - | 3.41 | | Total Assets | 15,347,987,269.83 | - | 15,526,375,082.77 | - | -1.15 | | Trading Financial Assets | 16,200,000.00 | 0.11 | 1,031,610.85 | 0.01 | 1,470.36 | | Receivables Financing | 89,721,444.58 | 0.58 | 132,770,861.89 | 0.86 | -32.42 | | Construction in Progress | 360,423,903.75 | 2.35 | 466,898,330.57 | 3.01 | -22.80 | | Notes Payable | 130,854,709.11 | 0.85 | 313,648,341.66 | 2.02 | -58.28 | | Other Payables | 902,791,820.08 | 5.88 | 675,273,606.32 | 4.35 | 33.69 | - Trading financial assets increased significantly by 1,470.36%, primarily due to an increase in wealth management products held at the end of the period[58] - Receivables financing decreased by 32.42%, mainly due to a reduction in supply chain notes and bank acceptance bills at the period-end[58] - Construction in progress decreased by 22.80%, primarily due to the transfer of projects to fixed assets[59] - Notes payable decreased by 58.28%, mainly due to a reduction in bank acceptance bills at the period-end[59] - Other payables increased by 33.69%, primarily due to an increase in current account balances[59] - Overseas assets amounted to 1,528,658,499.60 Yuan, accounting for 9.96% of total assets[61] Major Restricted Assets at Period-End | Item | Period-End Book Value (Yuan) | Restriction Details | | :--- | :--- | :--- | | Cash and Cash Equivalents | 122,793,768.09 | Note deposits, guarantee deposits, frozen funds, etc | | Notes Receivable | 108,502,606.36 | Endorsed but unmatured notes | | Fixed Assets | 14,216,832.89 | Pledged to banks for loans | | Intangible Assets | 26,913,827.12 | Litigation preservation and loan collateral | | Contract Assets | 8,256,545.70 | Pledged to banks for loans | | Receivables Financing | 1,900,000.00 | Factoring | | Investment Property | 163,110,026.96 | Pledged to banks for loans | | Total | 445,693,607.12 | / | Sale of Significant Assets and Equity The company publicly transferred a 55% equity stake in Shandong Shinva Changguo Hospital Investment Management Co, Ltd - In May 2025, the company publicly transferred a 55% equity stake in Shandong Shinva Changguo Hospital Investment Management Co, Ltd[66] Analysis of Major Holding and Investee Companies This section presents financial data for key subsidiaries and notes the investment income from a recent equity transfer Financial Data of Major Subsidiaries (Unit: 10k Yuan) | Company Name | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zibo Zhongsheng Pharmaceutical Co, Ltd | 2,718 | 54,758.23 | 5,637.80 | 51,657.81 | 157.82 | 148.91 | | Chengdu INDE Bio-pharmaceutical Equipment Technology Co, Ltd | 10,000 | 103,803.16 | 9,934.24 | 37,868.20 | 2,251.09 | 2,069.26 | - During the reporting period, the company's public transfer of Shandong Shinva Changguo Hospital Investment Management Co, Ltd generated an investment income of 48.5819 million Yuan[68] Other Disclosures The company faces risks related to performance compensation from acquisitions, market competition, and pending litigation - There is a risk of difficulty or delay in collecting performance compensation from the original shareholders of acquired companies[69] - The medical device industry faces increasingly fierce market competition due to rapid technological iteration, policy changes, and capital inflows[69] - The company has pending lawsuits that, if lost or unresolved, could adversely affect its production and operations[70] Section 4 Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, or senior management during the reporting period - There were no changes in the company's directors, supervisors, or senior management during the reporting period[72] Profit Distribution or Capitalization of Capital Reserves Plan The company does not have a profit distribution or capitalization of capital reserves plan for the first half of the year - The proposed semi-annual profit distribution or capitalization of capital reserves plan is "No"[72] Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The second tranche of restricted stocks under the 2021 equity incentive plan was unlocked and listed - On January 24, 2025, the second tranche of restricted stocks under the company's 2021 equity incentive plan was unlocked and listed, involving 330 incentive recipients and a total of 2,315,544 shares[74] List of Companies Subject to Mandatory Environmental Information Disclosure The company and two of its subsidiaries are included in the list of enterprises required to disclose environmental information - The company and two subsidiaries (Chengdu INDE Bio-pharmaceutical Equipment Co, Ltd, and Pingyin County Traditional Chinese Medicine Hospital) are included in the list of enterprises subject to mandatory environmental information disclosure[75] Efforts in Poverty Alleviation and Rural Revitalization The company did not disclose specific activities related to poverty alleviation or rural revitalization during the reporting period - No specific details on efforts to consolidate poverty alleviation achievements or promote rural revitalization were disclosed for the reporting period[76] Section 5 Significant Matters Fulfillment of Commitments The controlling shareholder, Shandong Health, has strictly adhered to its commitments regarding non-competition and related-party transactions - Shandong Health committed not to seek preferential rights over third parties in business cooperation with Shinva Medical[79] - Shandong Health committed not to conduct transactions with Shinva Medical at prices below market rates or engage in any activities that harm Shinva Medical's interests[79] - Shandong Health committed to preventing any illegal appropriation of Shinva Medical's funds or assets and will not require Shinva Medical to provide irregular guarantees[79] - Shandong Health committed to resolving business competition issues with Shinva Medical within five years through asset restructuring, business adjustments, and other measures[78] Non-operational Fund Occupation by Controlling Shareholder and Other Affiliates No non-operational fund occupation by the controlling shareholder or other affiliates occurred during the reporting period - There was no non-operational fund occupation by the controlling shareholder or other related parties during the reporting period[80] Irregular Guarantees The company had no irregular guarantees during the reporting period - There were no irregular guarantees during the reporting period[80] Semi-annual Report Audit Status The company's semi-annual report has not been audited - The semi-annual report is unaudited[80] Changes and Handling of Matters Related to Non-standard Audit Opinions in Last Year's Annual Report Last year's annual report did not contain any non-standard audit opinions - There were no matters related to non-standard audit opinions in last year's annual report[80] Bankruptcy and Reorganization Matters The company had no bankruptcy or reorganization matters during the reporting period - There were no bankruptcy or reorganization matters during the reporting period[80] Major Litigation and Arbitration Matters The company had no major litigation or arbitration matters during the reporting period - There were no major litigation or arbitration matters during the reporting period[80] Violations by the Company and Related Parties No violations, penalties, or rectifications were recorded for the company or its related parties during the period - There were no suspected violations, penalties, or rectifications involving the company or its related parties during the reporting period[80] Integrity Status of the Company and Related Parties The company and its controlling shareholder and actual controller maintained a good integrity status - The company and its controlling shareholder and actual controller maintained a good integrity status during the reporting period[80] Significant Related-Party Transactions The company engaged in routine related-party transactions priced at market rates, with some transactions not previously disclosed - The company's routine related-party transactions were disclosed in interim announcements, with no subsequent changes in their implementation[81] Routine Related-Party Transactions Not Disclosed in Interim Announcements (Unit: Yuan) | Related Party | Relationship | Transaction Type | Transaction Content | Transaction Amount | | :--- | :--- | :--- | :--- | :--- | | Shandong Huawei Health Industry Research Institute Co, Ltd | Subsidiary of an associate | Purchase of goods | Purchase of goods | 7,695.36 | | Shenzhen Gaoxin Xinrun Medical Technology Co, Ltd | Subsidiary of an associate | Purchase of goods | Purchase of goods | 367,699.11 | | Beijing Tong Ren Tang Zibo Pharmaceutical Chain Co, Ltd | Associate | Sale of goods | Sale of pharmaceuticals | 459,871.95 | | Vistar Medical Equipment (Shanghai) Co, Ltd | Subsidiary of an associate | Sale of goods | Sale of equipment and consumables | 918,442.12 | | Total | / | / | / | 3,584,667.02 | Significant Contracts and Their Performance The company recognized rental income from related parties and provided guarantees totaling 729.028 million Yuan to its subsidiaries Related-Party Leasing as Lessor (Unit: Yuan) | Lessor Name | Lessee Name | Leased Asset | Lease Income | | :--- | :--- | :--- | :--- | | Shanghai Shinva Taikang Biotechnology Co, Ltd | Vistar Medical Equipment (Shanghai) Co, Ltd | Building lease | 1,722,425.18 | | Shinva Medical | Shanghai Maiquan Medical Instrument Co, Ltd | Building lease | 504,384.38 | | Shinva Surgical Instrument Co, Ltd | Shandong Shinva Health Industry Co, Ltd | Equipment lease | 159,292.04 | Company's Total Guarantees (Unit: 10k Yuan) | Indicator | Amount | | :--- | :--- | | Guarantees to subsidiaries incurred during the reporting period | 41,890.00 | | Balance of guarantees to subsidiaries at the end of the reporting period (B) | 72,902.80 | | Total Guarantees (A+B) | 72,902.80 | | Total guarantees as a percentage of the company's net assets (%) | 8.90 | | Guarantees provided for entities with an asset-liability ratio exceeding 70% (D) | 67,772.80 | Section 6 Changes in Share Capital and Shareholders Changes in Share Capital Total share capital remained unchanged, while the number of restricted shares decreased due to an equity incentive plan unlocking Statement of Changes in Share Capital (Unit: Shares) | Item | Quantity Before Change | Proportion Before Change (%) | Change (+, -) | Quantity After Change | Proportion After Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 4,631,427 | 0.76 | -2,315,544 | 2,315,883 | 0.38 | | II. Unrestricted Circulating Shares | 602,046,492 | 99.24 | 2,315,544 | 604,362,036 | 99.62 | | III. Total Shares | 606,677,919 | 100.00 | 0 | 606,677,919 | 100.00 | - On January 24, 2025, the conditions for the second unlocking period of the 2021 restricted stock incentive plan were met, and 2,315,544 restricted shares held by 330 incentive recipients were unlocked[102] - The controlling shareholder, Shandong Health, plans to increase its holding of the company's A-shares by no less than 100 million Yuan and no more than 200 million Yuan within 12 months starting from May 27, 2025, through centralized bidding transactions[103] Shareholders As of the end of the reporting period, the company had 39,279 ordinary shareholders - As of the end of the reporting period, the total number of ordinary shareholders was 39,279[106] Top Ten Shareholders (Excluding Shares Lent via Securities Refinancing) | Shareholder Name | Shares Held at Period-End | Percentage (%) | Shareholder Type | | :--- | :--- | :--- | :--- | | Shandong Health Industry Group Co, Ltd | 175,385,227 | 28.91 | State-owned legal person | | Shandong State-owned Assets Investment Holdings Co, Ltd | 25,153,613 | 4.15 | State-owned legal person | | China Construction Bank Corporation - Huabao CSI Medical ETF | 16,093,129 | 2.65 | Unknown | | Hong Kong Securities Clearing Company Ltd | 7,920,194 | 1.31 | Unknown | | Southern Asset Management - Agricultural Bank of China - Southern CSI Finance Asset Management Plan | 7,226,030 | 1.19 | Unknown | | DaCheng Fund Management - Agricultural Bank of China - DaCheng CSI Finance Asset Management Plan | 7,133,350 | 1.18 | Unknown | | GF Fund Management - Agricultural Bank of China - GF CSI Finance Asset Management Plan | 7,133,190 | 1.18 | Unknown | | YinHua Fund Management - Agricultural Bank of China - YinHua CSI Finance Asset Management Plan | 7,130,696 | 1.18 | Unknown | | ICBC Credit Suisse Asset Management - Agricultural Bank of China - ICBC CS CSI Finance Asset Management Plan | 6,931,450 | 1.14 | Unknown | | Bosera Asset Management - Agricultural Bank of China - Bosera CSI Finance Asset Management Plan | 6,897,450 | 1.14 | Unknown | Top Ten Restricted Shareholders and Their Conditions (Unit: Shares) | No | Restricted Shareholder Name | Number of Restricted Shares Held | Tradable Date | Restriction Conditions | | :--- | :--- | :--- | :--- | :--- | | 1 | Wang Yuquan | 52,000 | February 16, 2026 | Unlocking conditions for restricted shares granted under the company's 2021 equity incentive plan | | 2 | Cui Hongtao | 45,500 | February 16, 2026 | Unlocking conditions for restricted shares granted under the company's 2021 equity incentive plan | | 3 | Li Caixiang | 45,500 | February 16, 2026 | Unlocking conditions for restricted shares granted under the company's 2021 equity incentive plan | | 4 | Zhao Xiaoli | 41,168 | February 16, 2026 | Unlocking conditions for restricted shares granted under the company's 2021 equity incentive plan | | 5 | Qu Jing | 41,168 | February 16, 2026 | Unlocking conditions for restricted shares granted under the company's 2021 equity incentive plan | | 6 | Zhou Juanjuan | 41,168 | February 16, 2026 | Unlocking conditions for restricted shares granted under the company's 2021 equity incentive plan | | 7 | Yang Qiwei | 30,334 | February 16, 2026 | Unlocking conditions for restricted shares granted under the company's 2021 equity incentive plan | | 8 | Ren Qi | 26,000 | February 16, 2026 | Unlocking conditions for restricted shares granted under the company's 2021 equity incentive plan | | 9 | Zhang Dongdi | 26,000 | February 16, 2026 | Unlocking conditions for restricted shares granted under the company's 2021 equity incentive plan | | 10 | Zhu Qingguo | 21,668 | February 16, 2026 | Unlocking conditions for restricted shares granted under the company's 2021 equity incentive plan | Section 7 Bond-related Matters Corporate Bonds and Non-financial Enterprise Debt Financing Instruments The company had no corporate bonds or non-financial enterprise debt financing instruments during the reporting period - There were no corporate bonds or non-financial enterprise debt financing instruments during the reporting period[113] Convertible Corporate Bonds The company had no convertible corporate bonds during the reporting period - There were no convertible corporate bonds during the reporting period[113] Section 8 Financial Report Audit Report This semi-annual report has not been audited - This semi-annual report is unaudited[115] Financial Statements This section provides the company's consolidated and parent company financial statements for the first half of 2025 - This section includes the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owner's equity as of June 30, 2025[115] Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were 15.35 billion Yuan Key Data from Consolidated Balance Sheet (June 30, 2025) | Item | Amount (Yuan) | | :--- | :--- | | Total Assets | 15,347,987,269.83 | | Total Current Assets | 9,189,878,396.26 | | Total Non-current Assets | 6,158,108,873.57 | | Total Liabilities | 7,159,693,371.57 | | Total Current Liabilities | 6,839,906,735.03 | | Total Non-current Liabilities | 319,786,636.54 | | Total Owners' Equity | 8,188,293,898.26 | | Total Equity Attributable to Parent Company | 7,856,077,479.77 | Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were 11.76 billion Yuan Key Data from Parent Company Balance Sheet (June 30, 2025) | Item | Amount (Yuan) | | :--- | :--- | | Total Assets | 11,759,096,767.46 | | Total Current Assets | 6,437,165,676.30 | | Total Non-current Assets | 5,321,931,091.16 | | Total Liabilities | 4,939,684,917.92 | | Total Current Liabilities | 4,819,838,348.63 | | Total Non-current Liabilities | 119,846,569.29 | | Total Owners' Equity | 6,819,411,849.54 | Consolidated Income Statement For the first half of 2025, consolidated total operating revenue was 4.79 billion Yuan, a decrease of 7.64% year-over-year Key Data from Consolidated Income Statement (Jan-Jun 2025) | Item | Amount (Yuan) | | :--- | :--- | | I. Total Operating Revenue | 4,790,414,888.01 | | II. Total Operating Costs | 4,397,550,992.73 | | IV. Total Profit | 454,476,869.54 | | V. Net Profit | 390,391,575.67 | | Net Profit Attributable to Parent Company Shareholders | 385,717,607.04 | | Basic Earnings Per Share (Yuan/Share) | 0.64 | | Diluted Earnings Per Share (Yuan/Share) | 0.64 | Parent Company Income Statement For the first half of 2025, the parent company's operating revenue was 2.27 billion Yuan, with net profit increasing by 10.55% Key Data from Parent Company Income Statement (Jan-Jun 2025) | Item | Amount (Yuan) | | :--- | :--- | | I. Operating Revenue | 2,266,734,849.43 | | II. Operating Profit | 400,231,593.53 | | III. Total Profit | 400,867,838.88 | | IV. Net Profit | 355,029,274.66 | | Investment Income (Losses in "-") | 81,715,706.39 | Consolidated Cash Flow Statement For the first half of 2025, net cash flow from operating activities was 243 million Yuan, an increase of 76.86% year-over-year Key Data from Consolidated Cash Flow Statement (Jan-Jun 2025) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 242,751,249.85 | | Net Cash Flow from Investing Activities | -153,463,343.26 | | Net Cash Flow from Financing Activities | 33,029,521.30 | | Net Increase in Cash and Cash Equivalents | 122,084,647.92 | | Period-End Balance of Cash and Cash Equivalents | 2,891,847,588.94 | Parent Company Cash Flow Statement For the first half of 2025, the parent company's net cash flow from operating activities was -5.93 million Yuan Key Data from Parent Company Cash Flow Statement (Jan-Jun 2025) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | -5,925,718.02 | | Net Cash Flow from Investing Activities | 204,827,455.69 | | Net Cash Flow from Financing Activities | -47,577,774.18 | | Net Increase in Cash and Cash Equivalents | 151,323,963.49 | | Period-End Balance of Cash and Cash Equivalents | 2,480,560,318.20 | Consolidated Statement of Changes in Owners' Equity For the first half of 2025, consolidated total owners' equity increased by 206 million Yuan Key Data from Consolidated Statement of Changes in Owners' Equity (Jan-Jun 2025) | Item | Beginning Balance (Yuan) | Change During Period (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | | Total Owners' Equity | 7,982,626,148.54 | 205,667,749.72 | 8,188,293,898.26 | | Equity Attributable to Parent Company | 7,597,127,229.99 | 258,950,249.78 | 7,856,077,479.77 | | Total Comprehensive Income | - | 387,296,745.21 | - | | Capital Injections and Reductions | - | 23,745,217.80 | - | | Profit Distribution | - | -157,153,479.75 | - | Parent Company Statement of Changes in Owners' Equity For the first half of 2025, the parent company's total owners' equity increased by 229 million Yuan Key Data from Parent Company Statement of Changes in Owners' Equity (Jan-Jun 2025) | Item | Beginning Balance (Yuan) | Change During Period (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | | Total Owners' Equity | 6,590,553,132.28 | 228,858,717.26 | 6,819,411,849.54 | | Total Comprehensive Income | - | 355,029,274.66 | - | | Capital Injections and Reductions | - | 23,562,424.75 | - | | Profit Distribution | - | -151,669,479.75 | - | Company Basic Information The company focuses on medical devices and pharmaceutical equipment, with its ultimate parent being Shandong Health Industry Group - The company's stock was listed on the Shanghai Stock Exchange on September 27, 2002[144] - The company's total share capital increased from 466,681,989 shares to 606,677,919 shares, and the registered capital was changed accordingly to 606,677,919 Yuan[145][146] - The company focuses on two core businesses, medical devices and pharmaceutical equipment, with a "2+2" business structure extended to medical commerce and medical services[146] - The company's parent and ultimate parent company is Shandong Health Industry Group Co, Ltd[147] Basis of Preparation for Financial Statements The financial statements are prepared on a going concern basis in accordance with enterprise accounting standards - The company's financial statements are prepared on a going concern basis and comply with the requirements of enterprise accounting standards[149] - The company has assessed its ability to continue as a going concern for the next 12 months from the end of the reporting period and found it to be sound, with no significant doubts[150] Significant Accounting Policies and Estimates This section details the significant accounting policies and estimates used in preparing the financial statements - The company's financial statements comply with the latest Enterprise Accounting Standards and related application guides and interpretations issued by the Ministry of Finance[151] - The company's fiscal year runs from January 1 to December 31, and it uses a 12-month period to classify assets and liabilities as current or non-current due to its short operating cycle[153][154] - Financial assets are classified based on business models and cash flow characteristics as measured at amortized cost, fair value through other comprehensive income, or fair value through profit or loss[168] - Revenue is primarily generated from the sale of medical devices, pharmaceutical equipment, and medical services, and is recognized when the customer obtains control of the related goods or services[240] - Government grants are classified as asset-related or income-related and are accounted for using the gross or net method, recognized in other income or as a reduction of related costs[258][259][260] Taxes The company is subject to various taxes, with several entities benefiting from a reduced 15% corporate income tax rate Major Taxes and Tax Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales of goods and taxable services income | 13%, 9%, 6%, 5%, 3%, 1% | | Urban Maintenance and Construction Tax | Actual turnover tax paid | 7%, 5% | | Corporate Income Tax | Taxable income | 25%, 20%, 16.5%, 15% | | Property Tax | Original value of property or rental income | 12%, 1.2% | | Education Surcharge | Actual turnover tax paid | 3% | | Local Education Surcharge | Actual turnover tax paid | 2% | - The company and its subsidiaries, including Shinva Surgical Instrument Co, Ltd, and Chengdu INDE Bio-pharmaceutical Equipment Co, Ltd, are certified as high-tech enterprises and are subject to a reduced corporate income tax rate of 15%[272][273][274] - Eligible small and micro-enterprises with annual taxable income not exceeding 3 million Yuan are subject to a reduced tax rate of 20% on 25% of their taxable income[275] Notes to Consolidated Financial Statement Items This section provides detailed notes on the items in the consolidated financial statements and explains significant changes - At period-end, cash and cash equivalents totaled 3.015 billion Yuan, with 123 million Yuan in restricted funds, primarily for note deposits, guarantee deposits, and frozen funds[277][278] - At period-end, trading financial assets were 16.20 million Yuan, a significant increase from the beginning of the period, mainly due to an increase in wealth management products[279] - At period-end, the book value of accounts receivable was 1.991 billion Yuan, with a bad debt provision of 270 million Yuan for individually assessed items and 159 million Yuan for portfolio-assessed items[290] - At period-end, the book value of inventory was 3.095 billion Yuan, with a total provision for inventory write-downs and contract cost impairments of 112 million Yuan[345] - At period-end, the book value of fixed assets was 2.814 billion Yuan, with 302 million Yuan transferred from construction in progress during the period[372][370] - At period-end, short-term borrowings totaled 937 million Yuan, including 697 million Yuan in guaranteed loans and 220 million Yuan in credit loans[401] - At period-end, contract liabilities amounted to 1.715 billion Yuan, primarily related to advance payments for goods[406] - During the period, operating revenue was 4.79 billion Yuan and operating costs were 3.583 billion Yuan, with main revenue sources from medical device manufacturing, medical commerce, and pharmaceutical equipment products[448][449] - R&D expenses for the period were 202 million Yuan, an increase of 8.88% year-over-year, mainly consisting of employee compensation and material costs[459] - Investment income for the period was 52.114 million Yuan, primarily from the disposal of long-term equity investments[465] R&D Expenditures Total R&D expenditure for the period was 201,713,769.93 Yuan, all of which was expensed R&D Expenditures by Nature (Unit: Yuan) | Item | Current Period Amount | | :--- | :--- | | Employee Compensation | 100,479,747.82 | | Material Costs | 66,172,209.81 | | Amortization and Depreciation | 4,753,405.77 | | Travel Expenses | 6,438,964.88 | | Technical Service Fees | 19,980,801.88 | | Others | 3,888,639.77 | | Total | 201,713,769.93 | | Of which: Expensed R&D | 201,713,769.93 | Changes in Consolidation Scope The company lost control of a subsidiary after disposing of a 55% equity stake, resulting in an investment gain - On May 6, 2025, the company disposed of a 55% equity stake in Shandong Shinva Changguo Hospital Investment Management Co, Ltd, resulting in a loss of control[499] - This disposal generated an investment income of 48.5819 million Yuan[499] Interests in Other Entities This section discloses the company's interests in its subsidiaries, joint ventures, and associates - The company holds interests in multiple subsidiaries engaged in commerce, technology services, manufacturing, and investment management[500][501] Financial Information of Significant Non-wholly Owned Subsidiaries (Current Period, Unit: Yuan) | Subsidiary Name | Minority Interest (%) | Profit/Loss Attributable to Minority Shareholders | Dividends Declared to Minority Shareholders | Period-End Minority Equity Balance | | :--- | :--- | :--- | :--- | :--- | | Zibo Zhongsheng Pharmaceutical Co, Ltd | 40.00 | 574,904.22 | - | 22,265,129.75 | | Chengdu INDE Bio-pharmaceutical Equipment Technology Co, Ltd | 0.51 | 105,718.29 | - | -2,049,131.03 | - The significant associate, IVD Medical Holding Limited, in which the company holds a 27.36% stake, is accounted for using the equity method[510] Key Financial Information of Significant Associate IVD Medical Holding Limited (Current Period, Unit: Yuan) | Item | Amount | | :--- | :--- | | Total Assets | 6,442,291,053.00 | | Total Liabilities | 2,664,925,428.12 | | Equity Attributable to Parent Company Shareholders | 3,719,621,229.65 | | Operating Revenue | 1,269,594,598.35 | | Net Profit | 35,669,714.14 | | Total Comprehensive Income | 45,707,264.98 | Government Grants The company recognized 35.30 million Yuan in government grants in the current period's profit and loss Liability Items Related to Government Grants (Unit: Yuan) | Financial Statement Item | Beginning Balance | New Grants | Transferred to Other Income | Ending Balance | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 70,561,213.85 | 5,206,719.07 | 3,801,227.73 | 71,966,705.19 | Asset-related | | Deferred Income | 8,199,000.16 | 4,047,802.79 | 4,047,802.79 | 8,199,000.16 | Income-related | | Total | 78,760,214.01 | 9,254,521.86 | 7,849,030.52 | 80,165,705.35 | / | Government Grants Recognized in Current Profit or Loss (Unit: Yuan) | Type | Current Period Amount | | :--- | :--- | | Asset-related | 3,801,227.73 | | Income-related | 31,500,020.91 | | Total | 35,301,248.64 | Risks Related to Financial Instruments The company primarily faces credit, liquidity, and market risks, which are managed through various control measures - The main risks arising from the company's financial instruments are credit risk, liquidity risk, and market risk[521] - Credit risk, mainly from cash and receivables, is controlled by depositing funds with highly-rated financial institutions and conducting regular credit assessments of customers[528][529] - Liquidity risk is managed through a mix of financing tools, including revolving credit facilities, note settlements, and bank loans, to balance financing continuity and flexibility[529] - As of June 30, 2025, the company had 1.115 billion Yuan in floating-rate bank loans, but a hypothetical 50 basis point change in interest rates would not have a material impact on profit or equity[534] - The company's main activities are denominated in RMB, so the foreign exchange risk is not significant[534] Fair Value Disclosures This section discloses the fair value of assets and liabilities measured at fair value, categorized by valuation hierarchy Period-End Fair Value of Assets and Liabilities Measured at Fair Value (Unit: Yuan) | Item | Level 2 Fair Value | Level 3 Fair Value | Total | | :--- | :--- | :--- | :--- | | (I) Trading Financial Assets | 16,200,000.00 | - | 16,200,000.00 | | (III) Other Equity Instrument Investments | - | 38,977,552.22 | 38,977,552.22 | | (VI) Receivables Financing | 89,721,444.58 | - | 89,721,444.58 | | (VII) Other Non-current Financial Assets | - | 94,798,948.72 | 94,798,948.72 | | Total Assets Continuously Measured at Fair Value | 105,921,444.58 | 133,776,500.94 | 239,697,945.52 | - The fair value of notes is determined by their face value; the fair value of principal-protected floating-rate bank wealth management products is measured by their principal plus expected interest income[539] - The operating environment, condition, and financial status of the investee companies, which are key inputs for Level 3 fair value measurements, have not undergone significant changes[540] Related Parties and Related-Party Transactions The company engaged in various transactions with related parties, including its parent company, subsidiaries, and associates - The company's parent is Shandong Health Industry Group Co, Ltd, and the ultimate controlling party is the State-owned Assets Supervision and Administration Commission of Shandong Provincial People's Government[541][542] - The company conducted related-party transactions involving the purchase and sale of goods and the provision and receipt of services, with pricing based on market rates[547][548] - As a lessor, the company provided building and equipment leasing services to related parties Vistar Medical Equipment (Shanghai) Co, Ltd, Shanghai Maiquan Medical Instrument Co, Ltd, and Shandong Shinva Health Industry Co, Ltd, and recognized rental income[549] - The company provided guarantees to several subsidiaries, with a total guarantee amount of 729.028 million Yuan[550][551] - The company extended