WBDE(SZ:002082)2025-08-28 11:05Part I Important Notes, Table of Contents, and Definitions Important Notes The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content, with the company's head and accounting head declaring the financial report's accuracy and completeness. - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content[5] - Company head Zhao Shouming, chief accountant Zhao Shouming, and accounting department head Jin Zheng declare the financial report is true, accurate, and complete[5] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves to share capital[6] Table of Contents This section lists the report's nine main chapters and their corresponding page numbers, providing investors with quick navigation of the report's content. - The report contains nine main chapters, covering important notes, company profile, management discussion and analysis, corporate governance, significant matters, share changes, bond information, financial report, and other submitted data[9] Definitions This section provides definitions for common terms and company-related entities used in the report, ensuring a clear understanding of its content. - Key terms such as "Company/This Company/Wanbangde", "CSRC", "SZSE", "This Report", "Company Law", "Securities Law", and "Articles of Association" are clearly defined[13] - Main subsidiary names and their relationships with the company are listed, including Wanbangde Pharmaceutical, Wanbangde Health Technology, Huabaotong, Bescon, Wanbangde Medical Technology, Kangci Medical, and Kang Kang Medical[13] - The "Reporting Period" is explicitly defined as January 1, 2025 to June 30, 2025[13] Part II Company Profile and Key Financial Indicators Company Profile The company's stock ticker is "Wanbangde", stock code 002082, listed on the Shenzhen Stock Exchange. The legal representative is Zhao Shouming, with no changes in contact or registration information during the reporting period. - Company stock ticker: Wanbangde, stock code: 002082, listed on: Shenzhen Stock Exchange[15] - Company legal representative is Zhao Shouming, Board Secretary is Liu Jianpeng, and Securities Affairs Representative is Chen Lisha[15][16] - Company's registered address, office address, website, and email information remained unchanged during the reporting period, as referenced in the 2024 annual report[17][18] Key Accounting Data and Financial Indicators In H1 2025, the company experienced significant declines in operating revenue and net profit, primarily due to national centralized procurement policies and market conditions, particularly the failure of Phloroglucinol Injection to win bids, while total assets and net assets attributable to shareholders slightly increased. 2025 H1 Key Accounting Data and Financial Indicators | Indicator | Current Period (Yuan) | Prior Period (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 578,552,044.29 | 752,797,947.41 | -23.15 | | Net Profit Attributable to Listed Company Shareholders | 13,463,455.25 | 37,704,117.17 | -64.29 | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-Recurring Gains/Losses) | -24,114,310.57 | 18,072,881.19 | -233.43 | | Net Cash Flow from Operating Activities | 44,044,366.83 | 116,245,113.26 | -62.11 | | Basic Earnings Per Share (Yuan/share) | 0.0200 | 0.0611 | -67.27 | | Diluted Earnings Per Share (Yuan/share) | 0.0200 | 0.0611 | -67.27 | | Weighted Average Return on Net Assets | 0.51 | 1.41 | -0.90 | | Indicator | Period-End (Yuan) | Prior Year-End (Yuan) | YoY Change (%) | | Total Assets | 4,428,037,175.39 | 4,327,397,080.53 | 2.33 | | Net Assets Attributable to Listed Company Shareholders | 2,684,468,413.28 | 2,666,804,346.48 | 0.66 | - The decline in operating revenue and net profit is primarily due to Phloroglucinol Injection failing to win bids in national centralized procurement, and other key products like Ginkgo Biloba Dropping Pills and Bromhexine Hydrochloride being affected by centralized procurement policies and market conditions[20] Differences in Accounting Data under Domestic and International Accounting Standards During the reporting period, there were no differences in net profit and net assets between financial reports disclosed under International Accounting Standards or foreign accounting standards and Chinese Accounting Standards. - The company's financial reports disclosed under International Accounting Standards and Chinese Accounting Standards showed no differences in net profit and net assets during the reporting period[21] - The company's financial reports disclosed under foreign accounting standards and Chinese Accounting Standards showed no differences in net profit and net assets during the reporting period[22] Non-Recurring Gains and Losses and Amounts In the reporting period, the company's non-recurring gains and losses totaled 37,577,765.82 Yuan, primarily from government subsidies and fair value changes of financial assets. 2025 H1 Non-Recurring Gains and Losses and Amounts | Item | Amount (Yuan) | Explanation | | :--- | :--- | :--- | | Government subsidies recognized in current profit or loss (excluding those closely related to normal business operations, compliant with national policies, enjoyed according to fixed standards, and having a sustained impact on company profit or loss) | 45,650,325.65 | Primarily due to government subsidies received in the current period | | Fair value change gains/losses from financial assets and liabilities held by non-financial enterprises, and gains/losses from disposal of financial assets and liabilities (excluding effective hedging activities related to normal business operations) | 536,175.47 | Primarily due to fair value changes of other non-current financial assets in the current period | | Other non-operating income and expenses apart from the above items | -1,472,444.47 | | | Less: Income tax impact | 6,715,570.58 | | | Minority interest impact (after tax) | 420,720.25 | | | Total | 37,577,765.82 | | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses, nor has it reclassified non-recurring gains and losses as recurring ones[25] Part III Management Discussion and Analysis Principal Businesses Engaged in During the Reporting Period The company focuses on pharmaceutical manufacturing and medical device healthcare industries, with H1 2025 revenue and net profit attributable to the parent company both declining, especially in the pharmaceutical manufacturing sector due to centralized procurement, while continuing to advance product R&D and market expansion across business segments, leveraging its South African business for international platform advantages. - The company's main business integrates pharmaceutical manufacturing and medical device R&D, production, and sales, classified under "C27 Pharmaceutical Manufacturing"[27] - In H1 2025, the company achieved operating revenue of 579 million Yuan, a 23.15% year-on-year decrease; net profit attributable to the parent company was 13.4635 million Yuan, a 64.29% year-on-year decrease[29] - Pharmaceutical manufacturing segment revenue was 338 million Yuan (-32.55%), with net profit attributable to the parent company of 41.08 million Yuan (-23.22%); medical device segment revenue was 241 million Yuan (-4.46%), with net profit attributable to the parent company of -32.83 million Yuan (-77.61%); South African business segment revenue was 172 million Yuan (+1.45%), with net profit attributable to the parent company of 6.21 million Yuan (+884.25%)[29] Industry Development Overview In H1 2025, the pharmaceutical manufacturing industry faced declining revenue and profits, but long-term trends driven by an aging population, rising health awareness, and policy guidance point towards innovation, standardization, and internationalization. - In H1 2025, national industrial enterprises above designated size saw operating revenue increase by 2.5% year-on-year, while total profit decreased by 1.8% year-on-year, indicating a trend of "revenue growth without profit growth"[27] - Pharmaceutical manufacturing enterprises above designated size achieved operating revenue of approximately 1.23 trillion Yuan, a 1.2% year-on-year decrease; total profit was 176.69 billion Yuan, a 2.8% year-on-year decrease, experiencing both revenue and profit decline[27] - Pharmaceutical industry policy centers on "structural adjustment", promoting a shift from "quantity expansion" to "quality improvement", with innovative drugs becoming the main growth driver and traditional pharmaceuticals facing deep adjustments[28] Company's Principal Businesses and Products During the Reporting Period The company's pharmaceutical manufacturing segment covers modern Chinese medicine, chemical raw materials, and preparations with a rich product line and ongoing new drug R&D, while the medical device segment includes orthopedic implants, medical equipment agency, and disposable sterile polymer devices, with multiple products gaining international certification and active market expansion. - The pharmaceutical manufacturing business possesses a complete industrial chain from Chinese medicine extraction and API synthesis to various dosage form preparations, with products covering cardiovascular, nervous, respiratory, digestive, and mental systems[30] - Pharmaceutical manufacturing R&D projects include Huperzine A Controlled Release Tablets (Class 2 new drug), WP103 Huperzine A Injection (US and China dual-filing new drug), and Lizhong Xiaopi Granules (Class 1 traditional Chinese medicine new drug)[33] - The medical device business covers orthopedic implant devices (6 products FDA approved, 20 products CE certified), medical equipment agency and maintenance services (South African market), and disposable sterile medical polymer devices (29 registered products, 1.2 billion units/year syringe capacity)[35][36][41] Principal Business Models Pharmaceutical manufacturing adopts a "production-to-order, procurement-to-production" model, combining independent and collaborative R&D, with sales models including academic promotion, distributors, and direct sales, while the medical device business is market-demand driven, with scientific production and a mix of distribution and direct sales. - Wanbangde Pharmaceutical's procurement model is "production-to-order, procurement-to-production", its production strictly adheres to GMP standards, and its R&D combines independent and collaborative efforts, holding 67 authorized patents[45] - Wanbangde Pharmaceutical's sales models include specialized academic promotion, distributors, and direct sales, covering over 30 provinces nationwide[45] - The medical device business's production model is market-demand oriented, and its sales model combines distribution and direct sales, with orthopedic devices primarily direct sales and all agency equipment direct sales[46] Market Position of Company's Main Products and Performance Drivers During the Reporting Period The company holds market-leading products in cardiovascular, nervous, and respiratory systems, such as Ginkgo Biloba Dropping Pills, Huperzine A Injection, and Bromhexine Hydrochloride Tablets, while the medical device segment continues to deepen market penetration in polymer materials and orthopedic devices, with performance primarily driven by industrial development, innovation, capacity release, and marketing model innovation. - Ginkgo Biloba Dropping Pills hold a market share of 12.41% in the oral Ginkgo Biloba preparations for cardiovascular diseases market, ranking second, and have been selected for the "China Pharmaceutical Brand List" for five consecutive years[47] - Huperzine A Injection holds a market share of 24.37% in the Huperzine A preparations market, ranking second, is a nationally exclusive product, and holds patents in multiple countries[48] - Phloroglucinol Injection's market share decreased due to failing to win bids in the 10th round of national centralized drug procurement; the company will focus on non-centralized procurement markets and grassroots medical terminals[50] - Medical polymer products have cumulatively covered 80% of provinces nationwide, 50+ cities in 25 provinces, with market coverage exceeding 70% in benchmark regions like Fujian and Zhejiang[51] Analysis of Core Competencies The company's core competencies lie in the product advantages, R&D innovation, integrated industrial chain, and regional advantages of its pharmaceutical manufacturing segment, as well as the China-Africa synergy strategy, leading technology, marketing, and resource integration advantages of its medical device segment. - The pharmaceutical manufacturing segment has formed an industrial chain integrating "modern Chinese medicine and chemical drugs, with coordinated development of characteristic APIs and preparations"[52] - The medical device segment continuously promotes China-Africa synergistic development, leveraging national China-Africa cooperation and "Belt and Road" initiatives[61] Pharmaceutical Manufacturing Segment The pharmaceutical manufacturing segment boasts 177 products and 201 drug approval numbers, covering multiple therapeutic areas, with Ginkgo Biloba Dropping Pills and Huperzine A Injection as core products, while the company highly values R&D innovation, holding 67 patents, and possesses an integrated "API + preparation" industrial chain advantage and regional advantages. - The pharmaceutical manufacturing segment possesses 177 products and 201 drug approval numbers, making it one of the domestic pharmaceutical companies with a wide range of dosage forms[53] - The company's Huperzine A Injection is a nationally exclusive product, previously awarded the National Technology Invention Award Second Prize, and has global patents in the US, Europe, Japan, and other countries[54] - As of the end of the reporting period, the pharmaceutical manufacturing segment holds 67 patents, including 50 invention patents, with 7 new patents added in H1 2025[56][57] - Wanbangde Pharmaceutical has formed an integrated industrial chain of "modern Chinese medicine and chemical drugs, with coordinated development of characteristic APIs and preparations", possessing 18 APIs and multiple Chinese medicine extracts[58] Medical Device Segment The medical device segment holds a leading position in the African market through its China-Africa synergy strategy, while the company has R&D teams in polymer materials and medicine, mastering multiple core technologies, with several products FDA or CE certified, and as of the end of the reporting period, holds 66 patents and has established a stable customer base and market reputation domestically and internationally. - The company's "China-Africa Collaborative Development Health Industry Case" was selected for the second "China-Africa Economic and Trade Cooperation Case Collection", establishing a star enterprise status in the African market[61] - As of the end of the reporting period, the medical device segment holds 66 patents, including 21 invention patents, 41 utility model patents, and 4 design patents, with 6 new patents added in H1 2025[62][63] - Subsidiary Tecmed Company is South Africa's largest local medical equipment agency sales and maintenance service provider, representing leading international medical equipment brands with a rich product line[64] Analysis of Principal Business The company's principal business revenue decreased by 23.15% year-on-year, mainly due to the pharmaceutical segment's products failing to win centralized procurement bids, with revenue from pharmaceutical manufacturing and distribution both significantly declining, while professional equipment manufacturing and services revenue slightly decreased, and overseas revenue remained stable. - Operating revenue decreased by 23.15% year-on-year, primarily due to the decline in sales of Phloroglucinol Injection in the pharmaceutical segment after failing centralized procurement bids[67] - Selling expenses decreased by 29.71% year-on-year, mainly due to reduced market promotion expenses for key pharmaceutical products after entering national centralized procurement[67] - Net cash flow from operating activities decreased by 62.11% year-on-year, primarily due to reduced sales receipts compared to the same period last year[67] 2025 H1 Operating Revenue Composition | Category | Current Period Amount (Yuan) | Share of Operating Revenue (%) | Prior Period Amount (Yuan) | Share of Operating Revenue (%) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 578,552,044.29 | 100.00 | 752,797,947.41 | 100.00 | -23.15 | | By Industry | | | | | | | Pharmaceutical Manufacturing | 224,254,105.89 | 38.76 | 314,325,721.78 | 41.75 | -28.66 | | Professional Equipment Manufacturing and Services | 240,858,950.49 | 41.63 | 252,106,724.18 | 33.49 | -4.46 | | Pharmaceutical Distribution | 42,213,397.72 | 7.30 | 145,118,893.95 | 19.28 | -70.91 | | Other Businesses | 71,225,590.19 | 12.31 | 41,246,607.50 | 5.48 | 72.68 | | By Product | | | | | | | Traditional Chinese Medicine | 81,392,870.23 | 14.07 | 114,013,457.45 | 15.15 | -28.61 | | Chemical APIs and Preparations | 142,861,235.66 | 24.69 | 200,312,264.33 | 26.61 | -28.68 | | Medical Devices | 240,858,950.49 | 41.63 | 252,106,724.18 | 33.49 | -4.46 | | Other Goods | 113,438,987.91 | 19.61 | 186,365,501.45 | 24.76 | -39.13 | | By Region | | | | | | | Domestic | 406,140,305.79 | 70.20 | 580,920,994.43 | 77.17 | -30.09 | | Overseas | 172,411,738.50 | 29.80 | 171,876,952.98 | 22.83 | 0.31 | 2025 H1 Gross Profit Margin by Principal Business Segment, Product, and Region | Category | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Profit Margin (%) | Operating Revenue YoY Change (%) | Operating Cost YoY Change (%) | Gross Profit Margin YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | | | | | | | | Pharmaceutical Manufacturing | 224,254,105.89 | 85,518,670.17 | 61.87 | -28.66 | -4.01 | -9.79 | | Professional Equipment Manufacturing and Services | 240,858,950.49 | 194,865,187.84 | 19.10 | -4.46 | -3.39 | -0.89 | | Pharmaceutical Distribution | 42,213,397.72 | 39,503,135.92 | 6.42 | -70.91 | -72.23 | 4.44 | | By Product | | | | | | | | Traditional Chinese Medicine | 81,392,870.23 | 14,365,821.15 | 82.35 | -28.61 | -42.09 | 4.11 | | Chemical APIs and Preparations | 142,861,235.66 | 71,152,849.02 | 50.19 | -28.68 | 10.68 | -17.72 | | Medical Devices | 240,858,950.49 | 194,865,187.84 | 19.10 | -4.46 | -3.39 | -0.89 | | By Region | | | | | | | | Domestic | 406,140,305.79 | 256,145,524.97 | 36.93 | -30.09 | -24.79 | -4.44 | | Overseas | 172,411,738.50 | 134,151,818.78 | 22.19 | 0.31 | 2.25 | -1.48 | Analysis of Non-Principal Business During the reporting period, non-principal businesses impacted total profit, with credit impairment losses contributing 27.82% and fair value change gains contributing 5.54%, while asset impairment and non-operating expenses had negative impacts. 2025 H1 Impact of Non-Principal Business on Total Profit | Item | Amount (Yuan) | Share of Total Profit (%) | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 0.00 | 0.00 | | No | | Fair Value Change Gains/Losses | 536,175.47 | 5.54 | Primarily due to fair value changes of other non-current financial assets in the current period | No | | Asset Impairment | -1,092,715.68 | -11.28 | Primarily due to inventory impairment changes in the current period | Yes | | Non-Operating Income | 320,524.19 | 3.31 | Primarily due to government subsidies unrelated to daily activities received in the current period | No | | Non-Operating Expenses | -1,487,396.78 | -15.36 | Primarily due to external donations in the current period | No | | Credit Impairment Losses | 2,694,438.89 | 27.82 | Primarily due to changes in bad debt provisions for receivables in the current period | No | Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets increased by 2.33% compared to the end of the previous year, with monetary funds, inventories, construction in progress, and long-term borrowings increasing, while short-term borrowings and contract liabilities decreased, and the company has some restricted assets. 2025 H1 Significant Changes in Asset Composition | Item | Period-End Amount (Yuan) | Share of Total Assets (%) | Prior Year-End Amount (Yuan) | Share of Total Assets (%) | Weight Change (%) | Significant Change Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 195,486,404.01 | 4.41 | 158,726,728.80 | 3.67 | 0.74 | | | Accounts Receivable | 681,154,554.50 | 15.38 | 681,903,501.91 | 15.76 | -0.38 | | | Inventories | 227,815,228.30 | 5.14 | 213,858,705.73 | 4.94 | 0.20 | | | Fixed Assets | 997,028,426.16 | 22.52 | 1,039,076,550.18 | 24.01 | -1.49 | | | Construction in Progress | 526,497,856.18 | 11.89 | 510,845,688.56 | 11.80 | 0.09 | | | Short-Term Borrowings | 702,886,887.91 | 15.87 | 853,969,430.11 | 19.73 | -3.86 | Primarily due to repayment of some short-term borrowings | | Contract Liabilities | 7,842,852.60 | 0.18 | 16,824,603.80 | 0.39 | -0.21 | | | Long-Term Borrowings | 153,247,571.51 | 3.46 | 104,000,000.00 | 2.40 | 1.06 | Primarily due to new borrowings in the current period | - The company had no significant overseas assets during the reporting period[75] 2025 H1 Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (Yuan) | Fair Value Change Gain/Loss for Current Period (Yuan) | Period-End Balance (Yuan) | | :--- | :--- | :--- | :--- | | Other Non-Current Financial Assets | 111,583,033.98 | 536,175.47 | 112,119,209.45 | | Total | 111,583,033.98 | 536,175.47 | 112,119,209.45 | | Financial Liabilities | 0.00 | 0.00 | 0.00 | 2025 H1 Asset Restriction Status | Item | Period-End Book Balance (Yuan) | Period-End Book Value (Yuan) | Restriction Type | Restriction Details | | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 14,430,418.92 | 14,430,418.92 | Deposit | Bank acceptance bill and letter of credit deposit | | Accounts Receivable | 12,385,419.26 | 11,766,148.30 | Pledge | Bank loan collateral | | Fixed Assets | 667,483,728.02 | 542,304,415.34 | Pledge | Bank loan collateral | | Intangible Assets | 109,823,074.44 | 91,690,673.16 | Pledge | Bank loan collateral | | Total | 804,122,640.64 | 660,191,655.72 | | | Analysis of Investment Status During the reporting period, the company's total investment significantly decreased by 82.71% year-on-year, with major non-equity investment projects including the second phase construction of the Shangma API plant and the oral liquid workshop relocation project, both under construction, while fair value changes in other non-current financial assets generated gains in securities investment. 2025 H1 Investment Amount Changes | Indicator | Investment Amount for Reporting Period (Yuan) | Investment Amount for Prior Period (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Investment Amount | 31,622,587.23 | 182,916,863.05 | -82.71 | - There were no significant equity investments or use of raised funds during the reporting period[79][82] 2025 H1 Major Non-Equity Investment Projects | Project Name | Amount Invested in Current Period (Yuan) | Cumulative Actual Investment as of Period-End (Yuan) | Project Progress (%) | Estimated Return (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Shangma API Plant Phase II Construction Project | 13,366,705.65 | 321,493,172.79 | 55.00 | 120,000,000.00 | | Oral Liquid Workshop Relocation Project | 21,150.31 | 43,057,345.81 | 90.00 | 8,000,000.00 | 2025 H1 Securities Investment Status | Security Type | Initial Investment Cost (Yuan) | Beginning Book Value (Yuan) | Fair Value Change Gain/Loss for Current Period (Yuan) | Period-End Book Value (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Other Non-Current Financial Assets | 9,800,000.00 | 4,277,221.80 | 536,175.47 | 4,813,397.27 | Significant Asset and Equity Disposals During the reporting period, the company did not undertake any significant asset or equity disposal. - The company did not dispose of significant assets during the reporting period[83] - The company did not dispose of significant equity during the reporting period[84] Analysis of Major Holding and Participating Companies The company's major holding subsidiaries, Wanbangde Pharmaceutical Group Co., Ltd. and Wenling Wanbangde Health Technology Co., Ltd., contributed most of the revenue during the reporting period, with Wanbangde Pharmaceutical achieving a net profit of 40.1554 million Yuan, while Wenling Wanbangde Health Technology Co., Ltd. incurred a net loss of 36.5837 million Yuan. 2025 H1 Financial Performance of Major Holding and Participating Companies | Company Name | Company Type | Principal Business | Registered Capital (10,000 Yuan) | Total Assets (10,000 Yuan) | Net Assets (10,000 Yuan) | Operating Revenue (10,000 Yuan) | Operating Profit (10,000 Yuan) | Net Profit (10,000 Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Wanbangde Pharmaceutical Group Co., Ltd. | Subsidiary | Pharmaceutical production, technical services, sales, etc. | 36,000.00 | 293,391.00 | 175,243.60 | 33,769.31 | 4,674.72 | 4,015.54 | | Wenling Wanbangde Health Technology Co., Ltd. | Subsidiary | Medical device production, sales, technology development, etc. | 5,000.00 | 171,042.28 | 25,373.68 | 24,085.90 | -4,508.38 | -3,658.37 | - During the reporting period, the company deregistered subsidiary Taizhou Dehui Enterprise Management Consulting Co., Ltd., which had no significant impact on overall production, operations, or performance[86] Structured Entities Controlled by the Company During the reporting period, the company did not control any structured entities. - The company had no structured entities under its control during the reporting period[85] Risks Faced by the Company and Countermeasures The company faces risks from centralized volume-based procurement price reductions, market competition, raw materials and product R&D, goodwill impairment, and environmental regulations, actively responding through diversified sales strategies, industrial chain integration, strengthened R&D investment, optimized operations, and close monitoring of environmental policies. - Risks from centralized volume-based procurement price reductions: The company will formulate diversified sales strategies for different product characteristics and integrate the industrial chain to ensure supply stability[86] - Market competition risks: The company will promote the integration and complementarity of various businesses to enhance market competitiveness across segments[87] - Raw material and product R&D risks: The company will strengthen top-level forward-looking strategic planning, increase investment in new product R&D and M&A, and optimize R&D processes[87] - Goodwill impairment risks: The company will fully mobilize team enthusiasm, strengthen production, technology, and quality control, optimize the sales network, and enhance overall operational capabilities[87] - Environmental risks: The company has dedicated environmental departments and professional emergency teams, strictly adheres to national environmental regulations in production, and closely monitors policy changes[88] 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 did not formulate a market value management system[89] - The company did not disclose a valuation enhancement plan[89] Implementation of "Dual Improvement in Quality and Returns" Action Plan The company did not disclose an announcement regarding the "Dual Improvement in Quality and Returns" action plan during the reporting period. - The company did not disclose an announcement regarding the "Dual Improvement in Quality and Returns" action plan[89] Part IV Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management During the reporting period, there were multiple changes in the company's directors, supervisors, and senior management, including Tu Pengfei and Ma Jian elected as directors, Liu Jianpeng appointed as Deputy General Manager and Board Secretary, and Zhang Yanzhou and Liu Tongke resigning due to personal reasons and job transfer, respectively. 2025 H1 Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Tu Pengfei | Independent Director | Elected | January 22, 2025 | | | Ma Jian | Non-Independent Director | Elected | January 22, 2025 | | | Liu Jianpeng | Deputy General Manager, Board Secretary | Appointed | May 20, 2025 | | | Zhang Yanzhou | Independent Director | Resigned | January 22, 2025 | Personal reasons | | Liu Tongke | Board Secretary | Dismissed | May 20, 2025 | Job transfer | Profit Distribution and Capital Reserve to Share Capital Conversion in This Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves to share capital for the half-year period. - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves to share capital for the half-year period[92] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, the company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation. - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[93] Environmental Information Disclosure The company and its two major subsidiaries, Wanbangde Pharmaceutical Group Co., Ltd. and Jiangsu Bescon Pharmaceutical Co., Ltd., were included in the list of enterprises required to disclose environmental information by law and have done so through designated systems. - The company and its major subsidiaries, Wanbangde Pharmaceutical Group Co., Ltd. and Jiangsu Bescon Pharmaceutical Co., Ltd., were included in the list of enterprises required to disclose environmental information by law[94] - Both subsidiaries have disclosed environmental information on the enterprise environmental information disclosure system (Zhejiang/Jiangsu)[94] Social Responsibility The company actively fulfills its social responsibilities in protecting shareholder rights, creditor rights, employee rights, environmental protection and sustainable development, and social welfare, promoting harmonious development between the enterprise and society through standardized operations, information disclosure, ensuring employee benefits, strengthening safety production, and charitable donations. - The company protects shareholder rights through standardized operation of general meetings, providing online voting platforms, addressing concerns of small and medium shareholders, and diligently fulfilling information disclosure obligations[95] - The company fully considers creditor interests in major business decisions, provides timely feedback, and strictly adheres to debt contracts[95][96] - The company ensures employee rights, with 100% labor contract signing, establishes dynamic salary adjustment mechanisms, provides training, and aims for "zero accidents, zero casualties, zero pollution" in safety production[96] - The company actively engages in social welfare, donating a total of 3.6832 million Yuan in cash and medicines to organizations like the Red Cross Society of Zhejiang Province during the reporting period[97] Part V Significant Matters Commitments During the reporting period, there were no commitments made by the actual controller, shareholders, related parties, acquirers, or the company that were fulfilled or overdue and unfulfilled as of the end of the reporting period. - The company had no commitments made by its actual controller, shareholders, related parties, acquirers, or the company that were fulfilled or overdue and unfulfilled as of the end of the reporting period[99] Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties from the Listed Company During the reporting period, there were no non-operating funds occupied by the controlling shareholder and other related parties from the listed company. - The company had no non-operating funds occupied by its controlling shareholder and other related parties during the reporting period[100] Irregular External Guarantees During the reporting period, there were no irregular external guarantees. - The company had no irregular external guarantees during the reporting period[101] 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[102] Board of Directors' and Supervisory Board's Explanation on "Non-Standard Audit Report" for This Reporting Period The company had no non-standard audit report during the reporting period, thus the Board of Directors and Supervisory Board do not need to provide an explanation. - Not applicable[103] Board of Directors' Explanation on "Non-Standard Audit Report" for the Previous Year The company had no non-standard audit report during the reporting period, thus the Board of Directors does not need to provide an explanation. - Not applicable[103] Bankruptcy and Reorganization Matters During the reporting period, the company did not experience any bankruptcy and reorganization matters. - The company did not experience any bankruptcy and reorganization matters during the reporting period[103] Litigation Matters During the reporting period, the company and its subsidiaries were involved in 5 lawsuits as plaintiffs (4 concluded, 1 ongoing) with a total amount of 5.9553 million Yuan, and 12 cases as defendants (6 concluded, 6 ongoing) with a total amount of 11.806 million Yuan. 2025 H1 Summary of Litigation and Arbitration Matters | Litigation (Arbitration) Basic Information | Amount Involved (10,000 Yuan) | Provision for Liabilities Formed | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | Litigation (Arbitration) Judgment Enforcement Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Summary of 5 cases where the company and its subsidiaries are plaintiffs | 595.53 | No | 4 cases concluded, 1 case ongoing | 4 cases in enforcement, 1 case ongoing | 4 cases in enforcement | | Summary of 12 cases where the company and its subsidiaries are defendants | 1,180.6 | No | 6 cases concluded, 6 cases ongoing | 4 cases settled, 2 cases judged, 6 cases ongoing | 4 cases enforced as per settlement, 2 cases require no enforcement, 6 cases still ongoing | Penalties and Rectification During the reporting period, the company had no penalties or rectification situations. - The company had no penalties or rectification situations during the reporting period[106] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the reporting period, there were no integrity issues concerning the company, its controlling shareholder, or actual controller. - Not applicable[107] 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, or related party creditor-debtor relationships, nor did it engage in transactions with affiliated financial companies. - The company had no related party transactions related to daily operations during the reporting period[107] - The company had no related party transactions involving asset or equity acquisitions or disposals during the reporting period[108] - The company had no related party creditor-debtor relationships during the reporting period[110] Significant Contracts and Their Performance During the reporting period, the company had no trusteeship, contracting, wealth management, or other significant contracts, but the company and its subsidiaries have multiple property lease contracts and provided several joint liability guarantees for subsidiaries, with a total guarantee balance accounting for 38.55% of the company's net assets. - The company had no trusteeship, contracting, wealth management, or other significant contracts during the reporting period[114][115][123][124] - The company and its subsidiaries have multiple property lease contracts for employee accommodation, canteens, and business offices, with lease terms mostly 5-10 years[116][117][118] 2025 H1 Company's Guarantees for Subsidiaries | Guaranteed Party Name | Guaranteed Amount (10,000 Yuan) | Actual Guaranteed Amount (10,000 Yuan) | Guarantee Type | Guarantee Period | | :--- | :--- | :--- | :--- | :--- | | Zhejiang Kangci Medical Technology Co., Ltd. | 500 | 500 | Joint liability guarantee | 2019-12-10 to 2025-12-4 | | Wanbangde Pharmaceutical Group Co., Ltd. | 3,000 | 3,000 | Joint liability guarantee | 2022-5-10 to 2026-5-9 | | Wanbangde Pharmaceutical Group Co., Ltd. | 10,000 | 9,500 | Joint liability guarantee | 2023-6-27 to 2027-6-27 | | Wanbangde Pharmaceutical Group Co., Ltd. | 3,000 | 3,000 | Joint liability guarantee | 2024-4-18 to 2028-4-17 | | Wanbangde Pharmaceutical Group Co., Ltd. | 5,000 | 5,000 | Joint liability guarantee | 2024-1-16 to 2028-1-15 | | Wanbangde Pharmaceutical Group Co., Ltd. | 4,000 | 4,000 | Joint liability guarantee | 2024-3-23 to 2028-3-5 | | Wanbangde Pharmaceutical Group Co., Ltd. | 15,000 | 10,000 | Joint liability guarantee | 2024-2-28 to 2028-2-28 | | Wanbangde Pharmaceutical Group Co., Ltd. | 10,000 | 10,000 | Joint liability guarantee | 2024-1-8 to 2028-7-4 | | Wanbangde Pharmaceutical Group Co., Ltd. | 5,000 | 5,000 | Joint liability guarantee | 2024-6-27 to 2029-6-17 | | Wanbangde Pharmaceutical Group Co., Ltd. | 5,500 | 5,500 | Joint liability guarantee | 2024-10-23 to 2028-5-12 | | Wanbangde Pharmaceutical Group Co., Ltd. | 4,400 | 2,875 | Joint liability guarantee | 2024-8-20 to 2029-6-20 | | Wanbangde Pharmaceutical Group Co., Ltd. | 20,000 | 4,150 | Pledge | 2024-9-4 to 2025-8-27 | | Wanbangde Pharmaceutical Group Co., Ltd. | 30,000 | 15,270 | Guarantee, Pledge | 2024-12-23 to 2035-3-8 | | Wanbangde Pharmaceutical Group Co., Ltd. | 5,000 | 4,900 | Joint liability guarantee | 2025-1-14 to 2029-1-24 | | Wanbangde Pharmaceutical Group Co., Ltd. | 4,000 | 4,000 | Joint liability guarantee | 2025-3-7 to 2029-3-7 | | Wanbangde Pharmaceutical Group Co., Ltd. | 5,280 | 5,280 | Joint liability guarantee | 2025-4-15 to 2030-7-14 | | Wanbangde Pharmaceutical Group Co., Ltd. | 3,000 | 3,000 | Joint liability guarantee | 2025-4-16 to 2029-4-14 | | Wanbangde Pharmaceutical Group Co., Ltd. | 10,000 | 5,000 | Joint liability guarantee | 2025-5-23 to 2029-6-17 | | Wanbangde Pharmaceutical Group Co., Ltd. | 5,500 | 5,500 | Joint liability guarantee | 2025-6-17 to 2030-6-17 | | Wanbangde Pharmaceutical Group Co., Ltd. | 10,000 | 10,000 | Joint liability guarantee | 2025-6-30 to 2027-12-30 | | Total | 210,000 | 103,475 | | | - The total actual guarantee balance at the end of the reporting period was 1.03475 billion Yuan (103,475 10,000 Yuan), accounting for 38.55% of the company's net assets[122] Explanation of Other Significant Matters The company completed the cancellation of 5 million repurchased shares on April 29, 2025, changing the total share capital from 616,689,055 shares to 611,689,055 shares. - The company completed the cancellation of 5 million repurchased shares on April 29, 2025[125] - After this cancellation, the company's total share capital changed from 616,689,055 shares to 611,689,055 shares[125] Significant Matters of Company Subsidiaries Subsidiary Wanbangde Pharmaceutical achieved several important milestones during the reporting period, including WP107 and WP103 receiving US FDA IND approval, Mecobalamin receiving FDA Orphan Drug Designation, WP107 receiving NMPA clinical trial approval, and obtaining an invention patent and supplementary application approval for Cefaclor Granules. - Wanbangde Pharmaceutical's self-developed WP107 (Huperzine A Oral Solution) and WP103 (Huperzine A Injection) received US FDA Investigational New Drug (IND) approval[126] - Wanbangde Pharmaceutical's Mecobalamin for treating Amyotrophic Lateral Sclerosis received US FDA Orphan Drug Designation, entitling it to tax credits, waiver of new drug application fees, and 7 years of market exclusivity[126] - Wanbangde Pharmaceutical's WP107 (Huperzine A Oral Solution) for treating Myasthenia Gravis received clinical trial approval from the National Medical Products Administration[127] - Wanbangde Pharmaceutical obtained an invention patent for "A Deuterated Huperzine A Compound or its Pharmaceutically Acceptable Salt, its Preparation Method and Application"[128] - Wanbangde Pharmaceutical's Cefaclor Granules received the "Drug Supplementary Application Approval Notice", adding a 0.125g specification and passing generic drug quality and efficacy consistency evaluation[129] Part VI Share Changes and Shareholder Information Share Change Status During the reporting period, the company's total share capital decreased due to the cancellation of 5 million repurchased shares, changing from 616,689,055 shares to 611,689,055 shares, with both restricted and unrestricted shares changing accordingly. 2025 H1 Share Change Status | | Quantity Before Change (shares) | Percentage Before Change (%) | Change (+,-) (shares) | Quantity After Change (shares) | Percentage After Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 58,437,133 | 9.48 | -1,000 | 58,436,133 | 9.55 | | II. Unrestricted Shares | 558,251,922 | 90.52 | -4,999,000 | 553,252,922 | 90.45 | | III. Total Shares | 616,689,055 | 100.00 | -5,000,000 | 611,689,055 | 100.00 | - The share change was due to the company's cancellation of 5 million repurchased treasury shares, which had been held for over three years and not used for equity incentive or employee stock ownership plans within the validity period[133] - This share change was approved by the company's 9th Board of Directors' 13th meeting and the 2025 Second Extraordinary General Meeting of Shareholders[133] 2025 H1 Restricted Share Change Status | Shareholder Name | Beginning Restricted Shares (shares) | Shares Released from Restriction in Current Period (shares) | Shares Added to Restriction in Current Period (shares) | Period-End Restricted Shares (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Wang Tianfang | 4,000 | 1,000 | 0 | 3,000 | Senior management lock-up shares | Securities Issuance and Listing During the reporting period, the company had no securities issuance or listing. - The company had no securities issuance or listing during the reporting period[137] Number of Shareholders and Shareholding Status At the end of the reporting period, the total number of common shareholders was 39,279, with Wanbangde Group Co., Ltd. being the largest shareholder among the top ten, holding 31.62% and acting in concert with Zhao Shouming, Zhuang Hui, and others, while multiple major shareholders' shares were pledged. - The total number of common shareholders at the end of the reporting period was 39,279[138] 2025 H1 Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage (%) | Period-End Shareholding (shares) | Restricted Shares Held (shares) | Unrestricted Shares Held (shares) | Share Status | Pledged, Marked, or Frozen Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Wanbangde Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 31.62 | 193,426,693 | 0 | 193,426,693 | Pledged | 153,150,000 | | Zhao Shouming | Domestic Natural Person | 8.12 | 49,677,267 | 37,257,950 | 12,419,317 | Pledged | 36,983,463 | | Zhuang Hui | Domestic Natural Person | 4.62 | 28,233,577 | 21,175,183 | 7,058,394 | Pledged | 23,810,000 | | Wenling Huibang Investment Consulting Co., Ltd. | Domestic Non-State-Owned Legal Person | 3.67 | 22,445,725 | 0 | 22,445,725 | Pledged | 14,380,000 | | Wenling Fubang Investment Consulting Co., Ltd. | Domestic Non-State-Owned Legal Person | 2.45 | 14,963,816 | 0 | 14,963,816 | Pledged | 9,120,000 | | Qingdao Tongyinxin Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 1.86 | 11,406,685 | 0 | 11,406,685 | Pledged | 11,406,685 | | Huzhou Zhili Town Asset Management Co., Ltd. | Domestic Non-State-Owned Legal Person | 0.78 | 4,790,910 | 0 | 4,790,910 | Pledged | 4,790,900 | | Song Tiehe | Domestic Natural Person | 0.71 | 4,348,580 | 0 | 4,348,580 | Not applicable | 0 | | Zhejiang Zhonghao Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 0.69 | 4,212,000 | 0 | 4,212,000 | Not applicable | 0 | | Yu Jiwen | Domestic Natural Person | 0.59 | 3,607,595 | 0 | 3,607,595 | Not applicable | 0 | - Wanbangde Group Co., Ltd., Zhao Shouming, Zhuang Hui, Wenling Huibang Investment Consulting Co., Ltd., and Wenling Fubang Investment Consulting Co., Ltd. are parties acting in concert[139] Changes in Shareholdings of Directors, Supervisors, and Senior Management The shareholdings of the company's directors, supervisors, and senior management did not change during the reporting period. - The shareholdings of the company's directors, supervisors, and senior management did not change during the reporting period; specific details can be found in the 2024 annual report[140] Changes in Controlling Shareholder or Actual Controller During the reporting period, neither the controlling shareholder nor the actual controller of the company changed. - The company's controlling shareholder did not change during the reporting period[141] - The company's actual controller did not change during the reporting period[141] Preferred Share Information The company had no preferred shares during the reporting period. - The company had no preferred shares during the reporting period[142] Part VII Bond-Related Information Bond-Related Information During the reporting period, the company had no bond-related information. - Not applicable[144] Part VIII Financial Report Audit Report The company's semi-annual financial report was not audited. - The company's semi-annual financial report was not audited[146] Financial Statements This section provides the company's H1 2025 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, comprehensively presenting the financial position and operating results at the end of the reporting period. - The consolidated balance sheet shows total assets of 4,428,037,175.39 Yuan, total liabilities of 1,654,440,908.10 Yuan, and total owners' equity of 2,773,596,267.29 Yuan at period-end[150] - The consolidated income statement shows total operating revenue of 578,552,044.29 Yuan, net profit of 8,785,941.90 Yuan, and net profit attributable to parent company shareholders of 13,463,455.25 Yuan for the current period[154][155] - The consolidated cash flow statement shows net cash flow from operating activities of 44,044,366.83 Yuan, net cash flow from investing activities of -158,450,617.48 Yuan, and net cash flow from financing activities of 151,983,947.01 Yuan[158][159] Company Overview Wanbangde Pharmaceutical Holding Group Co., Ltd. was registered on March 31, 1999, and listed on the SZSE on November 20, 2006, with its main businesses being pharmaceutical manufacturing and medical devices, and as of June 30, 2025, total share capital was 611.689055 million shares and registered capital was 611.689055 million Yuan, with Wanbangde Group Co., Ltd. as the parent company and Zhao Shouming and Zhuang Hui as the ultimate actual controllers, and a total of 43 subsidiaries included in the consolidated scope at the end of this period. - The company was registered on March 31, 1999, and listed on the Shenzhen Stock Exchange on November 20, 2006[176] - As of June 30, 2025, the company's total share capital was 611.689055 million shares, and registered capital was 611.689055 million Yuan[176] - The company's main businesses are pharmaceutical manufacturing and medical devices, with products covering cardiovascular, nervous, respiratory, and digestive system diseases, among others[177] - A total of 43 subsidiaries were included in the consolidated scope at the end of this period, 1 less than the previous period[178] Basis of Financial Statement Preparation The company's financial statements are prepared in accordance with the Enterprise Accounting Standards issued by the Ministry of Finance and relevant regulations of the China Securities Regulatory Commission, and evaluated based on the going concern assumption. - The company's financial statements are prepared in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance and the "Rules for Information Disclosure by Companies Offering Securities to the Public No. 15 – General Provisions for Financial Reports (Revised 2023)" by the China Securities Regulatory Commission[180] - The company evaluated its going concern ability for 12 months from the end of the reporting period and found no significant doubts regarding its ability to continue as a going concern[181] Significant Accounting Policies and Accounting Estimates The company has determined specific accounting policies and estimates for inventory valuation, expected credit loss provision for receivables, depreciation of fixed assets, amortization of intangible assets, and revenue recognition based on its operating characteristics, with no significant changes in accounting policies and estimates during the reporting period. - The company follows Enterprise Accounting Standards, with a 12-month operating cycle, functional currency is RMB, and overseas subsidiaries use local currency[183][184][185][186] - Financial assets are classified into those measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss, with impairment accounting based on expected credit losses[214][215][216][237] - Revenue recognition follows the principle of recognizing revenue when the customer obtains control of the related goods or services; sales of pharmaceuticals and medical devices are performance obligations satisfied at a point in time[346][349][350] - There were no significant changes in accounting policies and estimates during the reporting period[383] Taxation The company's main taxes include VAT, urban maintenance and construction tax, and corporate income tax, with several subsidiaries enjoying a 15% corporate income tax preferential rate as high-tech enterprises, some applying small and micro-profit enterprise tax benefits, and benefiting from R&D expense super deduction and advanced manufacturing enterprise VAT super deduction policies. Main Tax Categories and Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Sales of goods or provision of taxable services | 13%, 5%, 3%, 15%; export goods enjoy "exemption, credit, refund" policy, with refund rates of 13%, 5% | | Urban Maintenance and Construction Tax | Amount of turnover tax actually paid | 5%, 7% | | Corporate Income Tax | Taxable income | 15%, 25%, 27%, 21% | | Property Tax | For value-based assessment, 1.2% of the remaining value after a one-time deduction of 30% from the original value of the property; for rent-based assessment, 12% of rental income | 1.2%, 12% | | Education Surcharge | Amount of turnover tax actually paid | 3% | | Local Education Surcharge | Amount of turnover tax actually paid | 2% | - Zhejiang Kang Kang Medical Device Co., Ltd., Wanbangde Pharmaceutical Group Co., Ltd., and 3 other subsidiaries are high-tech enterprises, enjoying a 15% corporate income tax preferential rate[385] - Some subsidiaries apply small and micro-profit enterprise tax benefits, where the portion of annual taxable income not exceeding 1 million Yuan is taxed at 20% after being reduced by 75%[386] - Manufacturing enterprises' R&D expenses can enjoy a 100% super deduction before tax, and intangible assets formed are amortized at 200% before tax[387] - Advanced manufacturing enterprises can deduct an additional 5% of current deductible input VAT from their payable VAT from January 1, 2023 to December 31, 2027[387] Notes to Consolidated Financial Statement Items This section details the period-end balances, beginning balances, and current period changes for each major item in the consolidated financial statements, including assets, liabilities, owners' equity, revenue, costs, and expenses, with explanations for significant changes. 2025 H1 Monetary Funds | Item | Period-End Balance (Yuan) | Beginning Balance (Yuan) | | :--- | :--- | :--- | | Cash on Hand | 1,226,408.97 | 447,934.47 | | Bank Deposits | 179,829,296.41 | 142,940,121.37 | | Other Monetary Funds | 14,430,698.63 | 15,338,672.96 | | Total | 195,486,404.01 | 158,726,728.80 | | Of which: Funds Deposited Overseas | 11,573,427.68 | 8,274,130.01 | 2025 H1 Operating Revenue and Operating Cost | Item | Current Period Revenue (Yuan) | Current Period Cost (Yuan) | Prior Period Revenue (Yuan) | Prior Period Cost (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Principal Business | 577,378,444.78 | 388,843,948.95 | 747,317,230.00 | 468,788,571.62 | | Other Businesses | 1,173,599.51 | 1,453,394.80 | 5,480,717.41 | 2,995,006.45 | | Total | 578,552,044.29 | 390,297,343.75 | 752,797,947.41 | 471,783,578.07 | 2025 H1 R&D Expenses | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Direct Input | 5,670,566.29 | 8,704,025.71 | | Employee Compensation | 11,570,354.12 | 9,290,211.29 | | Depreciation and Amortization Expenses | 6,855,018.74 | 4,637,215.37 | | External R&D Expenses | 2,578,570.30 | 3,015,170.96 | | Equipment Debugging Fees | 451,973.30 | 292,104.22 | | Clinical Trial Fees for New Drug Development | 63,549.06 | 22,000.00 | | R&D Achievement Review, Appraisal, Evaluation, Acceptance Fees | 2,686,854.90 | 864,526.26 | | Other R&D Expenses | 1,264,583.64 | 616,613.93 | | Total | 31,141,470.35 | 27,441,867.74 | - The company's subsidiary in South Africa uses Rand as its functional currency, and its subsidiary in the United States uses USD as its functional currency[562] R&D Expenses During the reporting period, the company's total R&D expenditure was 36,012,504.13 Yuan, of which 31,141,470.35 Yuan was expensed and 4,871,033.78 Yuan was capitalized, with several R&D projects in the capitalization phase, including drug consistency evaluations, new drug technology development, and medical device product development. 2025 H1 R&D Expenditure | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Direct Input | 5,670,566.29 | 10,029,241.46 | | Employee Compensation | 12,453,987.08 | 9,290,211.29 | | Depreciation and Amortization Expenses | 6,855,018.74 | 4,637,215.37 | | External R&D Expenses | 5,216,536.40 | 7,804,143.49 | | Equipment Debugging Fees | 847,042.90 | 292,104.22 | | R&D Achievement Review, Appraisal, Evaluation, Acceptance Fees | 3,248,873.77 | 864,526.26 | | Clinical Trial Fees for New Drug Development | 63,549.06 | 22,000.00 | | Other R&D Expenses | 1,656,929.89 | 616,613.93 | | Total | 36,012,504.13 | 33,556,056.02 | | Of which: Expensed R&D Expenditure | 31,141,470.35 | 27,441,867.74 | | Capitalized R&D Expenditure | 4,871,033.78 | 6,114,188.28 | 2025 H1 Capitalized R&D Projects | Project | Period-End Balance (Yuan) | | :--- | :--- | | Drug Consistency Evaluation | 22,303,613.22 | | Bromhexine Hydrochloride Inhalation Solution | 8,216,581.13 | | Huperzine A Controlled Release Tablets Technology Development Research | 14,398,333.34 | | Lizhong Xiaopi Granules Development | 1,068,350.87 | | Disposable Intravenous Needle | 1,660,753.98 | | Disposable Infusion Set with Needle | 1,544,683.51 | | Disposable Insulin Syringe | 1,745,735.47 | | Total | 50,938,051.52 | Changes in Consolidation Scope During the reporting period, the company's consolidation scope decreased by 1 entity, as subsidiary Wanbangde Health Technology deregistered Taizhou Dehui Enterprise Management Consulting Co., Ltd. - The company's subsidiary, Wanbangde Health Technology, deregistered Taizhou Dehui Enterprise Management Consulting Co., Ltd. during the reporting period[575] Interests in Other Entities The company has 43 subsidiaries, with Wanbangde Pharmaceutical Group Co., Ltd. and Wenling Wanbangde Health Technology Co., Ltd. being important non-wholly-owned subsidiaries, and some subsidiaries have discrepancies between shareholding percentage and voting rights, with control primarily achieved through contractual agreements. - A total of 43 subsidiaries were included in the consolidated scope at the end of this period[178] 2025 H1 Financial Information of Important Non-Wholly-Owned Subsidiaries | Subsidiary Name | Minority Shareholding Percentage (%) | Profit/Loss Attributable to Minority Shareholders in Current Period (Yuan) | Dividends Declared to Minority Shareholders in Current Period (Yuan) | Period-End Minority Interest Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Wanbangde Medical Technology Co., Ltd. | 49.00 | -3,548,875.85 | 0.00 | 31,420,626.46 | - Wenling Wanbangde Health Technology Co., Ltd. holds 30% of Taizhou Dehui Enterprise Management Consulting Co., Ltd. but possesses 56.25% of the voting rights[580] - Tecmed Africa(Pty)Ltd controls Workers Health Medical Technologies(Pty)LTD, despite a shareholding percentage of 40%, because it is fully responsible for operational management[582] Government Grants During the reporting period, the total government grants recognized in profit or loss amounted to 44,998,929.89 Yuan, primarily including grants recognized in deferred income and other income. 2025 H1 Government Grants Recognized in Profit or Loss | Accounting Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Government Grants Recognized in Deferred Income | 2,544,615.03 | 1,792,220.02 | | Government Grants Recognized in Other Income | 42,377,415.93 | 17,288,936.03 | | Government Grants Recognized in Non-Operating Income | 76,898.93 | | | Total | 44,998,929.89 | 19,081,156.05 | Risks Related to Financial Instruments The company faces credit risk, liquidity risk, and market risk (primarily foreign exchange risk), managing these risks by formulating credit policies, continuously monitoring receivables, maintaining ample cash reserves, and monitoring foreign currency transactions. - The company's main financial instruments include monetary funds, equity investments, debt investments, borrowings, receivables, payables, etc., and it faces credit risk, liquidity risk, and market risk[590