Company Profile China Isotope & Radiation Corporation, established in 1983, is a leading enterprise in China's isotope and radiation application field with 42 years of experience, focusing on nuclear medicine and radiation applications, forming a "6+N" industrial layout, and serving over 18,000 medical institutions - China Isotope & Radiation Corporation is a leading enterprise in China's isotope and radiation application field, with 42 years of industry experience, and is a high-tech enterprise with the most comprehensive product range and industrial chain globally in isotopes, their products, and radiation processing568 - The company's business focuses on two major industrial directions: nuclear medical health and radiation application, forming a "6+N" industrial layout centered on 6 major businesses including nuclides, radiopharmaceuticals, nuclear medical equipment, integrated nuclear medicine solutions, radiation sources and applications, and radiation applications68 - As of June 30, 2025, the company has formed a network of 37 medical centers, has 8 R&D and production bases, serves over 18,000 medical institutions, and serves over 60 million people annually910 - In recent years, the company has accounted for nearly 70% of the large Class A radiotherapy equipment approved by the National Health Commission, becoming the leading brand for Class A radiotherapy equipment910 Company Information This section provides basic company information for China Isotope & Radiation Corporation, including legal name, registered office, and principal place of business, along with key contact details for the board of directors, committees, legal advisors, auditors, and H-share registrar - The company's legal name is China Isotope & Radiation Corporation12 - Changes in the board of directors include Mr. Han Yongjiang's resignation as Chairman on July 4, 2025, and Mr. Xiao Yafei's appointment as the new Chairman on July 25, 2025121316171819 - The Supervisory Committee was dissolved as of June 3, 2025, with all supervisors stepping down1924292 Definitions This section defines key terms and abbreviations used in the report, covering professional vocabulary related to corporate governance, related parties, financial indicators, and laws and regulations, ensuring clarity and consistency Highlights During the reporting period, China Isotope & Radiation Corporation achieved significant progress in various areas, including the full industrial chain integration of carbon-14 isotopes, partial production capability at the North China base, and the entry of Fluorine [18F] Betaprazine Injection into Phase III clinical trials - On May 16, 2025, the first batch of commercial reactor-produced carbon-14 isotope products from CNNC Qin Tong was launched, marking the full industrial chain integration of China's carbon-14 isotope from independent R&D and production to market supply2830 - On July 3, 2025, some workshops at Atom High-Tech's North China base achieved full production capability, marking an important step in automated radiopharmaceutical production2831 - On May 27, 2025, the Phase III clinical trial for Fluorine [18F] Betaprazine Injection was initiated, bringing new hope for Alzheimer's disease diagnosis3436 - In March 2025, the company successfully signed a contract for the supply of equipment for a million-Curie design source loading irradiation facility in Bangladesh, achieving a new breakthrough in overseas irradiation facility projects3539 - On March 17, 2025, China Isotope & Radiation Corporation's CyberKnife received 19 Class A large medical equipment configuration permits for 2024, accounting for 68%3540 - In June 2025, China Isotope & Radiation Corporation's Carbon [14C] Barium Carbonate products achieved batch export to Europe and America for the first time, establishing sales cooperation with leading enterprises in multiple countries4850 - In July 2025, China Isotope & Radiation Corporation was again recognized as a "Benchmark" enterprise in the State-owned Assets Supervision and Administration Commission's (SASAC) scientific reform initiative5356 Financial Highlights For the six months ended June 30, 2025, China Isotope & Radiation Corporation achieved revenue of RMB 2,857,764 thousand, a year-on-year increase of 1.7%, with operating profit and profit attributable to equity holders of the company both increasing, and basic earnings per share reaching RMB 0.54 2025 H1 Key Financial Data | Indicator | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,857,764 | 2,810,279 | 1.7% | | Gross Profit | 1,459,529 | 1,464,150 | -0.3% | | Operating Profit | 457,569 | 409,429 | 11.8% | | Profit Before Tax | 431,130 | 392,273 | 9.9% | | Profit Attributable to Equity Holders of the Company | 171,994 | 154,496 | 11.3% | | Basic/Diluted Earnings Per Share (RMB) | 0.54 | 0.48 | 12.5% | | Gross Margin | 51.1% | 52.1% | -1.0pp | | Operating Profit Margin | 16.0% | 14.6% | 1.4pp | | Net Profit Margin | 11.9% | 10.9% | 1.0pp | Balance Sheet (Period End): | Indicator | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 15,651,793 | 14,767,361 | 6.0% | | Total Liabilities | 7,691,302 | 7,022,766 | 9.5% | | Net Assets | 7,960,491 | 7,744,595 | 2.8% | Management Discussion and Analysis This section details China Isotope & Radiation Corporation's operating performance, business segment development, market expansion, scientific innovation, digital transformation, capital operations, capacity building, ecosystem co-construction, quality and safety management, future development strategies, and key risks for the first half of 2025 - The Group's operating revenue for the first half of 2025 reached RMB 2,857.8 million, a year-on-year increase of 1.7%; net profit was RMB 341.0 million, a year-on-year increase of 11.2%; and net profit attributable to owners of the parent company was RMB 172.0 million, a year-on-year increase of 11.3%5961 - The company focuses on two major industrial directions: nuclear medical health and radiation application, forming a "6+N" industrial layout, primarily engaged in the R&D, manufacturing, and sale of nuclides, radiopharmaceuticals, and radiation source products, and providing irradiation sterilization, material modification, and EPC services5860 Business Review As of June 30, 2025, China Isotope & Radiation Corporation operates five business segments, with sustained market expansion efforts in the first half of the year, achieving continuous growth in economic benefits, with operating revenue increasing by 1.7% year-on-year, and net profit and net profit attributable to owners of the parent company both achieving double-digit growth 2025 H1 Key Financial Indicators | Indicator | Amount (RMB millions) | Year-on-year growth (%) | | :--- | :--- | :--- | | Operating Revenue | 2,857.8 | 1.7% | | Net Profit | 341.0 | 11.2% | | Net Profit Attributable to Owners of the Parent Company | 172.0 | 11.3% | Business Segments The Group operates five segments: radiopharmaceuticals, radiation source products, irradiation, nuclear medical equipment and related services, and other businesses; radiopharmaceutical revenue declined due to reduced demand and increased competition in the breath test market 2025 H1 Revenue by Business Segment | Business Segment | For the six months ended June 30, 2025 (RMB millions) | Percentage (%) | For the six months ended June 30, 2024 (RMB millions) | Percentage (%) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Radiopharmaceuticals | 1,651.6 | 57.8 | 1,767.9 | 62.9 | -6.6% | | Radiation Source Products | 252.0 | 8.8 | 256.9 | 9.1 | -1.9% | | Irradiation | 88.7 | 3.1 | 86.5 | 3.1 | 2.5% | | Nuclear Medical Equipment and Related Services | 247.7 | 8.7 | 273.8 | 9.8 | -9.6% | | Other Businesses | 617.8 | 21.6 | 425.2 | 15.1 | 45.3% | | Total | 2,857.8 | 100.0 | 2,810.3 | 100.0 | 1.7% | Radiopharmaceuticals Radiopharmaceutical business revenue decreased by 6.6% year-on-year, mainly due to reduced market demand and increased competition for breath test products, despite successful expansion in the fluorine drug market - Radiopharmaceutical business revenue was RMB 1,651.6 million, a year-on-year decrease of 6.6%6668 - Revenue from diagnostic and therapeutic radiopharmaceuticals was RMB 847.9 million, a year-on-year decrease of 1.9%, with fluorine drug market expansion leading to a 12.8% increase in revenue, but sodium iodide drug sales were affected by changes in clinical guidelines6668 - Breath test revenue was RMB 786.66 million, a year-on-year decrease of 11.5%, primarily due to reduced market demand and increased competition6668 - The company launched the "Nuclide Therapy Work Strengthening and Efficiency Improvement Special Action Project" to enhance the level of grassroots nuclide targeted therapy and the influence of nuclear medicine6264 Radiation Source Products Revenue from radiation source products decreased by 1.9% year-on-year, mainly due to the prioritization of industrial radiation sources for internal group use, reducing external sales - Radiation source product revenue was RMB 252.0 million, a year-on-year decrease of 1.9%7073 - The decline in revenue was mainly due to the prioritization of industrial radiation sources for internal use by the Group, which reduced external sales7073 - Market share for Gamma Knife sources and industrial radiography sources remained stable, and Phase I of the Jiajiang Radiation Source Base project is nearing production6972 Irradiation Revenue from irradiation-related businesses increased by 2.5% year-on-year, primarily driven by an increase in irradiation sterilization volume - Irradiation-related business revenue was RMB 88.7 million, a year-on-year increase of 2.5%7477 - The increase in revenue was mainly due to a higher volume of irradiation sterilization services compared to the same period last year7477 - Tianjin and Yulin irradiation projects are progressing as scheduled, aiming to build comprehensive sterilization service bases7576 Nuclear Medical Equipment and Related Services Revenue from nuclear medical equipment and related services decreased by 9.6% year-on-year; despite the revenue decline, CNNC Accuray's CyberKnife system received 19 Class A large medical equipment configuration permits in 2024, accounting for 68%, demonstrating its leading position in the localization of high-end radiotherapy equipment - Nuclear medical equipment and related services revenue was RMB 247.7 million, a year-on-year decrease of 9.6%7880 - CNNC Accuray's X-ray stereotactic radiosurgery system (CyberKnife) received 19 Class A large medical equipment configuration permits in 2024, accounting for 68%7879 Other Businesses Revenue from trade services and other businesses increased by 45.3% year-on-year, with international business export revenue reaching a new high, growing by 63.4% - Trade services and other businesses revenue was RMB 617.8 million, a year-on-year increase of 45.3%8284 - International business export revenue was RMB 349.5 million, a year-on-year increase of 63.4%, setting a new historical record8284 - The company again won the bid for the Bangladesh irradiation facility project, helped domestic oil logging sources go global, and achieved the first batch export of domestic medical isotopes to Europe and America8283 Market Expansion China Isotope & Radiation Corporation continued to advance brand building and market promotion, participating in multiple important industry conferences and exhibitions to fully showcase its position in the nuclear technology application industry - The Group participated in the 2025 Radioactive Drug Innovation and Development Conference, the first China-Ocean Peace Use of Nuclear Technology Forum, etc., fully demonstrating its industry position8788 - The company continued to promote sales model reform, fostering synergistic development of breath test products, radiopharmaceuticals, radiation sources, and radiotherapy equipment businesses8991 - In collaboration with the Chinese Society of Nuclear Medicine, the company launched a demonstration project to promote nuclear medicine diagnosis and treatment work, completing the initiation of 5 demonstration projects in grassroots hospitals during the reporting period8991 International Business During the reporting period, China Isotope & Radiation Corporation actively expanded its international market, exporting products to dozens of countries and regions, achieving export revenue of RMB 349.5 million, a year-on-year increase of 63.4% - The Group exported products to dozens of countries and regions including Brazil, Peru, and Nigeria, achieving export revenue of RMB 349.5 million9092 - Export revenue increased by 63.4% year-on-year, with multiple breakthroughs in international business, including re-signing the Bangladesh irradiation facility project, repeat purchases of cold kits, and new registrations for breath diagnostic products in Saudi Arabia and Niger9093 - The company actively promoted its role as an IAEA Collaborating Centre, assisted the Ministry of Commerce in organizing foreign aid training, and hosted the IAEA Conference on Radiation Science and Technology, enhancing its international influence9497 Scientific Research and Innovation China Isotope & Radiation Corporation achieved significant results in scientific research and innovation, with a substantial increase in patent applications and grants, continuously strengthening its technological capabilities - As of June 30, 2025, the Group held 1,054 valid patents, including 224 invention patents, with 74 patent applications and 106 patent grants during the reporting period9699 - Multiple diagnostic and therapeutic radiopharmaceuticals are in various clinical trial stages, including Fluorine [18F] Betaprazine Injection initiating Phase III clinical trials, and Iodine [131I]-MIBG Injection, Fluorine [18F] Fluciclovine Injection, etc., undergoing Phase III clinical trials9598 - The Group's first batch of commercial reactor-produced carbon-14 isotope products was launched, achieving full industrial chain integration; the production technology for carrier-free Lutetium-177 nuclide was introduced from ITM Group, establishing the first domestic production line with an annual capacity of ten thousand Curies109111 - The independently developed Gamma Beam Stereotactic Radiosurgery System (Gamma Knife) received its medical device registration certificate on July 5, 2024, offering advantages of more precise, intelligent, and efficient treatment110112 Patents and Awards During the reporting period, the company achieved significant results in intellectual property work, applying for 74 patents, obtaining 106 authorizations, and accumulating a total of 1,054 valid patents - During the reporting period, the Group applied for 74 patents and obtained 106 patent grants9699 - As of June 30, 2025, the Group owned 1,054 valid patents, including 224 invention patents9699 - During the reporting period, 7 trademarks were registered, 9 copyrights were registered, 1 national standard and 2 national pharmacopoeia standards were issued, and 2 national standards are under compilation9699 Diagnostic Drugs The company made progress in the R&D of diagnostic drugs for tumors and neurodegenerative diseases, with patient enrollment for Phase III clinical trials of Iodine [131I] Metaiodobenzylguanidine Injection and Technetium [99mTc] Sulfur Colloid completed, and other drugs in Phase III trials - Patient enrollment for Phase III clinical trials of Iodine [131I] Metaiodobenzylguanidine Injection for pheochromocytoma diagnosis has been completed101 - Phase III clinical trials for Fluorine [18F] Fluciclovine Injection for prostate cancer diagnosis are underway, expected to fill a domestic gap101 - Patient enrollment for Phase III clinical trials of Technetium [99mTc] Sulfur Colloid for breast cancer sentinel lymph node imaging has been completed102 - Phase I clinical trials for Alzheimer's disease (AD) diagnostic drug Fluorine [18F] Betaprazine Injection have been completed, and Phase III clinical trials have been initiated104 - Phase III clinical trials for Parkinson's disease diagnostic drug 6-[18F] Fluoro-L-Dopa Injection are underway, which will fill a domestic PET Parkinson's drug gap104 Theranostic Drugs The company made progress in theranostic drugs for neuroendocrine tumors, with Gallium [68Ga] DOTATATE Injection and Lutetium [177Lu] Oxo-octreotide Injection currently undergoing Phase III clinical trials, expected to significantly improve diagnosis and treatment efficiency upon market launch - Gallium [68Ga] DOTATATE Injection and Lutetium [177Lu] Oxo-octreotide Injection are undergoing Phase III clinical trials, expected to significantly improve the diagnosis and treatment efficiency for neuroendocrine tumor patients105107 Oncology Therapeutic Drugs Palladium [103Pd] sealed seed source, an implantable product for brachytherapy, has completed all preclinical research, suitable for permanent implantation therapy for various solid tumors - Palladium [103Pd] sealed seed source has completed all preclinical research, suitable for brachytherapy of prostate cancer, pancreatic cancer, lung cancer, and other solid tumors106108 Nuclides The Group successfully launched the first batch of commercial reactor-produced carbon-14 isotope products, achieving full industrial chain integration, and introduced carrier-free Lutetium-177 nuclide production technology, establishing the first domestic production line with an annual capacity of ten thousand Curies - The first batch of commercial reactor-produced carbon-14 isotope products was launched, achieving full industrial chain integration of China's carbon-14 isotope109111 - The production technology for carrier-free Lutetium-177 nuclide was introduced from ITM Group, establishing the first domestic production line with an annual capacity of ten thousand Curies, with product indicators meeting European Pharmacopoeia requirements and GMP-grade production and supply capabilities109111 Nuclear Medical Equipment The Group's independently developed Gamma Beam Stereotactic Radiosurgery System (Gamma Knife) received its medical device registration certificate on July 5, 2024, offering advanced features for precise, intelligent, and efficient cancer treatment - The independently developed Gamma Beam Stereotactic Radiosurgery System (Gamma Knife) successfully received its medical device registration certificate on July 5, 2024110112 - The Gamma Knife features kV cone-beam CT image guidance, sub-millimeter automatic correction with a six-dimensional couch, high dose rate, and AI-driven automatic organ contouring, enabling more precise, intelligent, and shorter single-treatment times110112 R&D Platforms China Isotope & Radiation Corporation possesses a comprehensive internal and external R&D platform system, including multiple external platforms and internal R&D centers, actively collaborating with top research institutions and universities, and strengthening high-level talent development with 670 R&D personnel - The Group owns external R&D platforms such as the IAEA Collaborating Centre for Radiopharmaceuticals and Radiation Sources, and the National Atomic Energy Agency Nuclear Technology (Radiopharmaceutical Engineering Transformation) R&D Center113114 - Internal R&D centers include the Radiopharmaceutical R&D Center, Stable Isotope and Breath Test Technology R&D Center, Radiation Source and Application R&D Center, and Radiation Application Technology R&D Center115117 - The company actively establishes scientific research cooperation with leading domestic research institutes, universities, and hospitals such as the National Institute of Metrology, Shanghai Institute of Materia Medica, Beijing Normal University, and Peking Union Medical College Hospital, and has 670 R&D personnel115117118 Digital Transformation China Isotope & Radiation Corporation actively promotes digital transformation, researching overall solutions and ensuring project organization and resource allocation, while exploring AI+nuclear technology applications and accelerating industrial digitalization - The Group actively promotes digital transformation, researching overall solutions and ensuring project organization and resource allocation119120 - Promoting the "Nuclear Smart Hub" ERP system, completing business standard dissemination and difference identification analysis, and entering the solution adaptation phase119120 - Actively exploring new scenarios for AI+nuclear technology applications, conducting research and project initiation for AI applications in scientific innovation fields such as radiopharmaceutical R&D119120 - Accelerating industrial digitalization, conducting self-assessment of smart manufacturing maturity, advancing the construction of isotope-related smart factories, and building a digital platform for production quality119120 Capital Operations During the reporting period, China Isotope & Radiation Corporation did not add new external equity investment projects, while its innovation industry investment fund, with a paid-in capital balance of RMB 410 million, introduced new investors and primarily invests in nuclear technology applications - During the reporting period, the Group had no new external equity investment projects121123 - As of June 30, 2025, the company's paid-in capital balance in the CIRC Innovation Industry Investment Fund was RMB 410 million, accounting for 45.08%121124 - The CIRC Fund introduced the National Military-Civilian Integration Industry Investment Fund and the Beijing Daxing Development Guidance Fund, enhancing its capital advantages, primarily investing in nuclear technology application fields, with some invested enterprises planning independent listings122125 Production Capacity and Base Construction To meet the demand for radiopharmaceuticals, China Isotope & Radiation Corporation accelerated the national layout of medical centers and base construction, enhancing production capacity, with key projects like the North China, East China, and South China medical bases, and the Jiajiang Radiation Source Base, progressing steadily - The national network layout of medical centers continues to expand, with 29 operating centers accumulated, including the completion and production of Technetium drug production lines in Guiyang and Urumqi126128 - Phase I hot testing of some production lines at the North China Medical Base has been completed, equipment installation at the East China Medical Base project has been completed, and the South China Base has initially completed the adjustment plan for its project proposal126128 - Phase II of the High-Enrichment 13CO Gas Enrichment Construction Project has completed preliminary feasibility studies; once completed, it will become the first ton-level high-enrichment 13CO gas production base in China129130 - Phase I of the Jiajiang Radiation Source R&D and Production Base project passed the review by the National Nuclear Safety Expert Committee, and the Qinshan Isotope Production Base project completed hot testing for carbon-14 and strontium-89129130 - The Tianjin Irradiation Project officially commenced construction, and the Zhangjiagang Gamma Irradiation Facility Renovation Project significantly improved production efficiency, capacity, and product quality129130 Co-building a Nuclear Medicine Development Ecosystem China Isotope & Radiation Corporation assisted 13 hospitals in the Western Sichuan region in forming a nuclide therapy alliance, creating a nuclide therapy network covering 20 million people, promoting regional coordinated development, and deepening strategic cooperation with the Chinese Society of Nuclear Medicine - The Group assisted 13 hospitals in the Western Sichuan region in forming a nuclide therapy alliance, creating a nuclide therapy network covering 20 million people, promoting regional disciplinary development from "single-point breakthroughs" to "regional coordination"131133 - Deepening strategic cooperation with the Chinese Society of Nuclear Medicine, jointly promoting the construction of national nuclear medicine diagnosis and treatment demonstration bases; as of June 2025, 7 demonstration projects have been initiated132134 - Actively promoting the application of the "Fuzhi 1.0" smart nuclear medicine system and initiating the R&D of "Fuzhi 2.0," aiming to achieve inter-hospital connectivity and multi-center integrated diagnosis and treatment135136 Quality and Safety In the first half of 2025, China Isotope & Radiation Corporation focused on "Year of Excellence" to comprehensively advance quality work, achieve quality objectives, and continuously carry out special actions to enhance the effectiveness of quality systems at medical centers, while maintaining a strong safety record - Quality objectives were met in the first half of the year, with the quality system fully established ahead of schedule and maintained in dynamic balance; special actions to enhance the effectiveness of quality systems at medical centers continued137138 - No production safety or environmental accidents occurred from January to June; the three-year special action for fundamental safety production improvement was thoroughly implemented139140 - A "full-scope, full-process, full-lifecycle" radiation safety management system was established, achieving steady improvement in safety management levels139140 - In the first half of the year, 8 member units successfully passed on-site assessments for safety production standardization, effectively enhancing enterprise safety production management139140 Future Development In the second half of 2025, China Isotope & Radiation Corporation will focus on high-quality stable growth, scientific innovation, market expansion, capacity building, and governance efficiency improvement, aiming to accelerate key product growth, international market expansion, and R&D progress - In the second half of the year, the focus will be on high-quality stable growth, expanding effective investment, accelerating the reservation of high-quality projects, and intensifying market breakthroughs to achieve stable growth in key products such as isotopes and their products, and nuclear medical equipment141142 - Vigorously promoting scientific innovation, establishing a market-oriented scientific innovation system, advancing key R&D projects to achieve milestone progress, and accelerating clinical trials for 8 radiopharmaceuticals141143 - Strengthening market expansion, optimizing the distributor model, focusing on South America, Southeast Asia, the Middle East, North Africa, and countries along the "Belt and Road" to promote large-scale export of core products144145 - Enhancing production capacity, accelerating the construction of three major key special projects, ensuring the Phase I production of the Jiajiang Radiation Source Base and obtaining production licenses for Phase I of the North China Medical Base to start trial production146 - Improving governance efficiency, compiling the "15th Five-Year Plan" with high standards, promoting the implementation of the excellent performance model and the online application of the "Nuclear Smart Hub" ERP, and safeguarding the bottom lines of safety, environmental protection, quality, and confidentiality147 Key Risks and Uncertainties China Isotope & Radiation Corporation faces various risks and uncertainties, including operational, investment, market, interest rate, liquidity, and economic environment risks, which could adversely affect its operating results and financial position - Operational risk: Risk of loss due to inadequate or missing internal procedures, personnel, or systems, or due to external events148150152 - Investment risk: The possibility of any investment incurring a loss relative to its expected return; the company has established an authorization system and conducts detailed analysis148151153 - Market risk: Risk of profitability being harmed or the ability to achieve business objectives being affected due to market competition148154158 - Economic environment risk: The Group's majority of business is located in mainland China, and its operating results and financial position are affected by economic development in mainland China and other regions; an economic slowdown may have an adverse impact148157161162 Financial Review The Group's revenue for the first half of 2025 increased by 1.7% year-on-year to RMB 2,857.8 million, primarily driven by increased revenue from other business segments, while gross profit slightly decreased, and operating profit and profit for the period both increased 2025 H1 Income Statement Key Data | Indicator | For the six months ended June 30, 2025 (RMB millions) | For the six months ended June 30, 2024 (RMB millions) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,857.8 | 2,810.3 | 1.7% | | Cost of Sales | 1,398.2 | 1,346.1 | 3.9% | | Gross Profit | 1,459.5 | 1,464.2 | -0.3% | | Gross Margin | 51.1% | 52.1% | -1.0pp | | Other Income, Gains and Losses | 46.9 | 26.0 | 80.5% | | Selling and Distribution Expenses | 601.9 | 678.2 | -11.2% | | Administrative Expenses, R&D Costs and Credit Impairment Losses | 447.0 | 402.6 | 11.0% | | Finance Costs | 29.8 | 24.1 | 23.8% | | Profit Before Tax | 431.1 | 392.3 | 9.9% | | Profit for the Period | 341.0 | 306.7 | 11.2% | Revenue The Group's revenue primarily comes from five segments: radiopharmaceuticals, radiation source products, irradiation, nuclear medical equipment and related services, and other businesses, with total revenue increasing by 1.7% year-on-year to RMB 2,857.8 million - Revenue increased by 1.7% year-on-year to RMB 2,857.8 million163166 - Mainly due to increased revenue from the other business segment163166 Cost of Sales, Gross Profit and Gross Margin Cost of sales increased by 3.9% year-on-year to RMB 1,398.2 million, mainly due to increased cost of sales in the other business segment, while gross profit decreased by 0.3% to RMB 1,459.5 million, and gross margin fell from 52.1% to 51.1% - Cost of sales increased by 3.9% year-on-year to RMB 1,398.2 million164167 - Gross profit decreased by 0.3% year-on-year to RMB 1,459.5 million, with gross margin falling from 52.1% to 51.1%164168 - The decrease in gross profit and gross margin was mainly due to lower radiopharmaceutical revenue and the lower gross margin of the other business segment, which had a larger revenue increase164168 Other Income, Gains and Losses Other income, gains, and losses significantly increased by 80.5% year-on-year to RMB 46.9 million, primarily benefiting from increased government grants and dividend income - Other income increased by 80.5% year-on-year to RMB 46.9 million165169 - Mainly due to increased government grants and dividend income165169 Selling and Distribution Expenses Selling and distribution expenses decreased by 11.2% year-on-year to RMB 601.9 million, with the percentage of revenue falling from 24.1% to 21.1%, primarily due to reduced sales service fees resulting from changes in radiopharmaceutical sales policies - Selling and distribution expenses decreased by 11.2% year-on-year to RMB 601.9 million170174 - As a percentage of revenue, it decreased from 24.1% to 21.1%170175 - Mainly due to reduced sales service fees caused by changes in radiopharmaceutical sales policies170174 Administrative Expenses, Research and Development Costs and Credit Impairment Losses Administrative expenses, R&D costs, and credit impairment losses combined increased by 11.0% year-on-year to RMB 447.0 million, with the percentage of revenue rising from 14.3% to 15.6%, mainly due to increased staff costs and expensed R&D expenditures - Administrative expenses, R&D costs, and credit impairment losses combined increased by 11.0% year-on-year to RMB 447.0 million171176 - As a percentage of revenue, it increased from 14.3% to 15.6%171177 - Mainly due to increased staff costs and expensed R&D expenditures171176 Finance Costs Finance costs increased by 23.8% year-on-year to RMB 29.8 million, primarily due to increased interest expenses driven by the company's increased funding needs for business development - Finance costs increased by 23.8% year-on-year to RMB 29.8 million172178 - Mainly due to increased funding needs for the company's business development, leading to higher interest expenses172178 Share of Loss of Associates and Share of Profit of Joint Ventures Share of loss of associates increased by 54.4% year-on-year to RMB 7.5 million, mainly due to a decrease in associate profits, while share of profit of joint ventures decreased by 7.7% year-on-year to RMB 10.9 million due to a slight decrease in joint venture profits - Share of loss of associates increased by 54.4% year-on-year to RMB 7.5 million, mainly due to a decrease in associate profits173179 - Share of profit of joint ventures decreased by 7.7% year-on-year to RMB 10.9 million, mainly due to a slight decrease in joint venture profits180185 Profit Before Tax Considering the above factors, profit before tax increased by 9.9% year-on-year to RMB 431.1 million - Profit before tax increased by 9.9% year-on-year to RMB 431.1 million181186 Income Tax Expense Income tax expense increased by 5.3% year-on-year to RMB 90.1 million, with the effective tax rate decreasing from 21.8% to 20.9% - Income tax expense increased by 5.3% year-on-year to RMB 90.1 million182187 - The effective tax rate decreased from 21.8% to 20.9%182187 Profit for the Period Considering the above factors, profit for the period increased by 11.2% year-on-year to RMB 341.0 million - Profit for the period increased by 11.2% year-on-year to RMB 341.0 million183188 Financial Position As of June 30, 2025, the Group's total assets, total liabilities, and net assets all increased, with net current assets growing by 7.7% and the adjusted net gearing ratio rising to 38.4% 2025 H1 Balance Sheet Overview | Indicator | As of June 30, 2025 (RMB millions) | As of December 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 15,651.8 | 14,767.4 | 6.0% | | Total Liabilities | 7,691.3 | 7,022.8 | 9.5% | | Net Assets | 7,960.5 | 7,744.6 | 2.8% | Overview As of June 30, 2025, the Group's total assets increased to RMB 15,651.8 million, total liabilities to RMB 7,691.3 million, and net assets to RMB 7,960.5 million - As of June 30, 2025, the Group's total assets were RMB 15,651.8 million, total liabilities were RMB 7,691.3 million, and total equity was RMB 7,960.5 million184189 Net Current Assets Net current assets increased by 7.7% from RMB 3,895.0 million as of December 31, 2024, to RMB 4,193.1 million as of June 30, 2025, primarily due to increases in prepayments and inventories Current Assets, Current Liabilities, and Net Current Assets | Indicator | As of June 30, 2025 (RMB millions) | As of December 31, 2024 (RMB millions) | | :--- | :--- | :--- | | Total Current Assets | 9,638.5 | 8,918.4 | | Total Current Liabilities | 5,445.4 | 5,023.4 | | Net Current Assets | 4,193.1 | 3,895.0 | - Net current assets increased by 7.7% to RMB 4,193.1 million, mainly due to increases in prepayments and inventories192193 Adjusted Net Gearing Ratio and Quick Ratio As of June 30, 2025, the adjusted net gearing ratio was 38.4% (34.9% as of December 31, 2024), and the quick ratio was 1.5 times (1.6 times as of December 31, 2024) Gearing Ratio and Quick Ratio | Indicator | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Adjusted Net Gearing Ratio | 38.4% | 34.9% | | Quick Ratio | 1.5 times | 1.6 times | Trade and Other Receivables As of June 30, 2025, net trade and other receivables amounted to RMB 5,135.7 million, after deducting an allowance for doubtful debts of RMB 276.6 million - As of June 30, 2025, trade and other receivables were RMB 5,135.7 million, after deducting an allowance for doubtful debts of RMB 276.6 million195200 Trade and Other Payables As of June 30, 2025, trade and other payables amounted to RMB 4,086.9 million, primarily comprising trade payables, accrued expenses, and other payables - As of June 30, 2025, trade and other payables were RMB 4,086.9 million196201 Issuance of Bonds On October 25, 2024, the company issued RMB 500 million of technology innovation corporate bonds with a coupon rate of 2.25%, maturing in 2027 - On October 25, 2024, the company issued RMB 500 million of corporate bonds with a coupon rate of 2.25%, maturing in 2027197202 Bank Loans and Pledged Assets As of June 30, 2025, the Group's total bank loans amounted to RMB 2,086.34 million, including RMB 359.70 million borrowed from CNNC Finance, with assets pledged for borrowings totaling RMB 116.00 million - As of June 30, 2025, the Group's total bank loans were RMB 2,086.34 million (December 31, 2024: RMB 1,682.43 million)203207 - Total loans from CNNC Finance were RMB 359.70 million (December 31, 2024: RMB 297.01 million)203207 - As of June 30, 2025, assets pledged for borrowings amounted to RMB 116.00 million203207 Capital Expenditures During the reporting period, the Group's capital expenditures amounted to RMB 264.9 million, primarily for additions to property, plant, and equipment and intangible assets - During the reporting period, capital expenditures were RMB 264.9 million204208 Contingent Liabilities As of June 30, 2025, the company had no significant contingent liabilities - As of June 30, 2025, the company had no significant contingent liabilities205209 Foreign Exchange and Exchange Rate Risk The Group's revenue is primarily received in RMB, and some bank deposits denominated in foreign currencies (HKD) face currency risk, with the company monitoring foreign exchange movements but currently having no hedging policy - The Group's revenue is primarily received in RMB, and some bank deposits denominated in foreign currencies (HKD) face currency risk206210 - The company monitors foreign exchange movements but currently has no foreign exchange hedging policy206210 Credit Risk The Group manages credit risk by continuously monitoring credit risk, investigating the creditworthiness of new customers, assessing credit quality, and defining credit limits, and believes there is no significant concentration of credit risk due to a large number of customers - The company has established policies to continuously monitor credit risk, conduct creditworthiness investigations for new customers, assess credit quality, and define credit limits211212 - Given that trade receivables and bills receivable involve a large number of customers, the company believes there is no significant concentration of credit risk213215 Liquidity Risk The Group regularly monitors liquidity needs, maintaining sufficient cash reserves and committed funds to meet short-term and long-term liquidity requirements, and the directors believe the company has sufficient monetary capital to fund operations, thus posing no significant liquidity risk - The company regularly monitors liquidity needs, ensuring sufficient cash reserves and committed funds are maintained214216 - The directors believe the company has sufficient monetary capital to fund operations, and therefore there is no significant liquidity risk214216 Dividend Policy The company's dividend policy stipulates that 10% of the after-tax profit for the year must be allocated to the statutory surplus reserve, and discretionary surplus reserves may also be allocated, with dividend declaration decisions depending on operating results, cash flow, financial position, future prospects, and legal and contractual restrictions - When distributing after-tax profit for the year, the company shall allocate 10% to the statutory surplus reserve; no further allocation is required when the accumulated amount exceeds 50% of the registered capital217218 - Dividends for domestic shares are declared and paid in RMB, while dividends for H-shares are declared in RMB and paid in HKD, with the exchange rate being the arithmetic average of the middle rates of HKD to RMB published by the People's Bank of China for the five business days preceding the declaration date219221 - Dividend declaration decisions depend on operating results, cash flow, financial position, future prospects, and legal and contractual restrictions220222 Interim Dividend The Board of Directors recommended an interim dividend of RMB 0.0807 per share (tax inclusive) for the six months ended June 30, 2025, totaling RMB 25,813,904.43, with payment expected by November 14, 2025, and applicable tax withholdings for non-resident enterprise shareholders and individual H-share holders - The Board of Directors recommended an interim dividend of RMB 0.0807 per share (tax inclusive) for the six months ended June 30, 2025, totaling RMB 25,813,904.43223225 - The 2025 interim dividend is expected to be paid by November 14, 2025, with H-share dividends denominated in RMB and paid in HKD223225 - The company will withhold and pay 10% enterprise income tax for non-resident enterprise shareholders and individual income tax for individual H-share holders according to tax agreements between their countries of residence and China224226227229 Suspension of Share Register Closure To convene the extraordinary general meeting and distribute the 2025 interim dividend, the company will suspend share transfer registration from September 12 to September 17, 2025, and from September 23 to September 26, 2025, respectively, to determine shareholders eligible to attend the meeting and receive dividends - To convene the extraordinary general meeting, share transfer registration will be suspended from September 12 to September 17, 2025231232234 - To receive the 2025 interim dividend, share transfer registration will be suspended from September 23 to September 26, 2025231232234 No Material Adverse Change The directors confirmed that as of June 30, 2025, there have been no material adverse changes in the company's financial and operating conditions or prospects - As of June 30, 2025, there have been no material adverse changes in the company's financial and operating conditions or prospects235237 Events After Reporting Period After the reporting period, in August 2025, China Baoyuan gratuitously transferred all its 108,085,353 domestic shares of the company to CNNC Group, with the transfer registration completed on August 21, 2025, making CNNC Group the direct controlling company - In August 2025, China Baoyuan gratuitously transferred all its 108,085,353 domestic shares of the company to CNNC Group236238 - The relevant share transfer registration was completed on August 21, 2025, making CNNC Group the direct controlling company of the company236238 Use of Proceeds from Initial Public Offering The company's H-shares were listed on July 6, 2018, with net proceeds from the global offering of approximately HKD 1.69 billion, of which RMB 268.1 million was used for working capital and general corporate purposes, and RMB 536.1 million for selective mergers and acquisitions - Net proceeds from the global offering were approximately HKD 1.69 billion239240 Use of Proceeds from IPO (as of June 30, 2025) | Purpose | Initial Allocation (RMB millions) | Amount Used as of June 30, 2025 (RMB millions) | Remaining Amount as of June 30, 2025 (RMB millions) | Expected Time to Fully Utilize Remaining Amount | | :--- | :--- | :--- | :--- | :--- | | Investment in production and R&D bases for diagnostic and therapeutic radiopharmaceuticals | 597.3 | 460.0 | 0.0 | - | | Establishment of new production facilities | 84.5 | 50.0 | 0.0 | - | | Investment in R&D of various diagnostic and therapeutic radiopharmaceuticals, raw materials for radiation source products, medical radioisotopes, and urea breath test products and related raw materials | 253.6 | 105.5 | 12.8 | 2025 | | Investment/Selective (Mergers and) Acquisitions | 286.5 | 536.1 | 0.0 | - | | Working capital and general corporate purposes | 143.3 | 268.1 | 0.0 | - | | Total | 1,432.5 | 1,419.7 | 12.8 | | - The actual timing of use for R&D investment projects may differ from expectations due to ongoing planning for some newly initiated projects, subject to actual project progress243 Employees and Remuneration Policy As of June 30, 2025, the Group employed 3,361 employees, with staff costs of approximately RMB 378.7 million, and its remuneration policy aims to incentivize and retain excellent employees by providing salaries, bonuses, and various benefits, including retirement, medical, and housing provident fund plans - As of June 30, 2025, the Group employed 3,361 employees (June 30, 2024: 3,132 employees)244246 - For the six months ended June 30, 2025, staff costs were approximately RMB 378.7 million (same period in 2024: RMB 378.5 million)244246 - The company's remuneration policy aims to incentivize and retain excellent employees, providing salaries, bonuses, and employee benefits, including retirement benefit plans, medical and work injury insurance plans, and housing provident fund plans244246247 Hedging Activities For the six months ended June 30, 2025, the Group did not enter into any hedging transactions for foreign exchange or interest rate risks - For the six months ended June 30, 2025, the Group did not enter into any hedging transactions for foreign exchange or interest rate risks249253 Significant Investments, Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures For the six months ended June 30, 2025, the Group had no significant investments, disposals, or acquisitions of subsidiaries, associates, and joint ventures - For the six months ended June 30, 2025, the Group had no significant investments, disposals, or acquisitions of subsidiaries, associates, and joint ventures250254 Future Plans for Material Investments or Capital Assets The Group will actively explore domestic and international investment opportunities to increase revenue sources, but as of the latest practicable date, the company has no specific future plans for material investments or acquisitions of capital assets - The Group will actively explore domestic and international investment opportunities, but as of the latest practicable date, the company has no specific future plans for material investments or acquisitions of capital assets251252255 Corporate Governance Report and Other Information This section outlines China Isotope & Radiation Corporation's corporate governance practices, including compliance with Appendix C1 of the Listing Rules and the Model Code for Securities Transactions, with ongoing efforts to enhance corporate governance, changes in board and supervisory committee members, and disclosure of interests - The company has adopted and complied with the principles and code provisions of Appendix C1 "Corporate Governance Code" of the Listing Rules257259 - All directors confirmed strict compliance with the "Model Code for Securities Transactions by Directors of Listed Issuers" during the reporting period258260261 - As of the date of this interim report, the company has appointed four independent non-executive directors, and the Audit and Risk Management Committee comprises two independent non-executive directors and one non-executive director262264263265 - As of June 30, 2025, the company's total share capital was RMB 319,874,900, divided into 79,968,800 H-shares and 239,906,100 domestic shares, with no changes during the reporting period268270 - As of June 30, 2025, directors and chief executives held no disclosable interests or short positions in shares269271 - As of June 30, 2025, the company had no significant litigation or arbitration matters283286 - During the reporting period, the company consistently complied with OFAC-related commitments284287 Compliance with Model Code for Securities Transactions The Group has adopted a "Customized Code" no less stringent than Appendix C3 of the Listing Rules, and all directors confirmed strict compliance during the reporting period, with no violations by employees identified - The Group has adopted a "Customized Code" no less stringent than Appendix C3 "Model Code for Securities Transactions by Directors of Listed Issuers" of the Listing Rules258260 - All directors confirmed strict compliance with the "Customized Code" during the reporting period, and the company found no violations by employees258261 Independent Non-Executive Directors The company has appointed a sufficient number of independent non-executive directors with appropriate professional qualifications or financial management expertise, as required by the Listing Rules, with four such directors appointed as of the interim report date - The company has appointed a sufficient number of independent non-executive directors with appropriate professional qualifications or financial management expertise as required by the Listing Rules262264 - As of the date of this interim report, the company has appointed four independent non-executive directors, including Mr. Pan Zhaoguo, Ms. Chen Jingshan, Mr. Lu Chuang, and Mr. An Rui262264 Audit and Risk Management Committee As of the interim report date, the Audit and Risk Management Committee comprises two independent non-executive directors and one non-executive director, with terms of reference compliant with the Listing Rules, and has reviewed the Group's accounting principles, internal controls, and interim financial results - The Audit and Risk Management Committee comprises Mr. Pan Zhaoguo (Chairman), Mr. Lu Chuang, and Mr. Chen Zan, in compliance with the Listing Rules263265 - The Committee has reviewed the accounting principles and practices adopted by the Group and discussed internal controls and financial reporting matters with management263266 - On August 28, 2025, the Committee reviewed and confirmed the interim results announcement and unaudited condensed consolidated interim financial information for the six months ended June 30, 2025263267 Share Capital As of June 30, 2025, the company's total share capital was RMB 319,874,900, divided into 79,968,800 H-shares and 239,906,100 domestic shares, with no changes during the reporting period - As of June 30, 2025, the company's total share capital was RMB 319,874,900268270 - The share capital is divided into 79,968,800 H-shares and 239,906,100 domestic shares, with a par value of RMB 1.00 per share268270 - The company's share capital remained unchanged during the reporting period268270 Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures As of June 30, 2025, the company's directors and chief executive did not hold any interests or short positions in shares, underlying shares, and debentures required to be disclosed to the company and the Stock Exchange under Divisions 7 and 8 of Part XV of the Securities and Futures Ordinance - As of June 30, 2025, the company's directors and chief executive held no interests or short positions in shares, underlying shares, and debentures required to be disclosed to the company and the Stock Exchange269271 Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares As of June 30, 2025, CNNC Group and its subsidiaries (CIAE, NPIC, CNNC Fund, China Baoyuan) collectively held approximately 98.43% of the company's domestic share capital, with other major shareholders holding varying proportions of H-share interests Substantial Shareholders' Interests and Short Positions (as of June 30, 20
中国同辐(01763) - 2025 - 中期财报