吉林敖东(000623) - 2025 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides crucial disclaimers, the report's table of contents, and definitions of key terms used throughout the document Important Notice The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, while reminding investors of forward-looking statements and investment risks - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content[4] - The report contains forward-looking statements regarding future plans and development strategies, which do not constitute profit forecasts or substantial commitments, and investors are advised to be aware of investment risks[5] - The profit distribution plan approved by the Board of Directors is to distribute a cash dividend of RMB 2.00 (tax inclusive) per 10 shares to all shareholders, based on a total share capital of 1,172,381,587 shares (total shares of 1,195,895,387 less 23,513,800 shares in the company's share repurchase account) as of June 30, 2025, with no bonus shares or capital reserve conversions[5] Catalogue of Reference Documents This section lists the company's reference documents for the reporting period, including signed financial statements, publicly disclosed originals, and other relevant materials - Financial statements bearing the signatures and seals of the company's legal representative, chief financial officer, and head of accounting department (accounting manager)[10] - Originals of all company documents and announcements publicly disclosed during the reporting period[10] Definitions This section provides definitions for common terms and abbreviations of company-related entities, including the company itself, its main subsidiaries, and relevant regulatory bodies - "Company", "the Company" refers to Jilin Aodong Pharmaceutical Group Co., Ltd[11] - "Jincheng Company" refers to Dunhua Jincheng Industrial Co., Ltd[11] - "GF Securities" refers to GF Securities Co., Ltd[11] Company Profile and Key Financial Indicators This section presents the company's fundamental information and a summary of its key financial performance metrics and accounting data Company Profile This section introduces the basic information of Jilin Aodong Pharmaceutical Group Co., Ltd., including its stock abbreviation, code, listing exchange, Chinese and English names, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Jilin Aodong | | Stock Code | 000623 | | Stock Exchange | Shenzhen Stock Exchange | | Company's Chinese Name | 吉林敖东药业集团股份有限公司 | | Company's Legal Representative | Li Xiulin | Contact Person and Contact Information This section provides the contact information for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, faxes, and email addresses Contact Person and Contact Information | Position | Board Secretary | Securities Affairs Representative | | :--- | :--- | :--- | | Name | Wang Zhenyu | Zhao Renhe | | Contact Address | No. 2158 Aodong Street, Dunhua City, Jilin Province | No. 2158 Aodong Street, Dunhua City, Jilin Province | | Phone | 0433-6238973 | 0433-6238973 | | Fax | 0433-6238973 | 0433-6238973 | | Email | 000623@jlaod.com | 000623@jlaod.com | Other Information During the reporting period, there were no changes in the company's registered address, office address, website, email, information disclosure, and document storage locations, with details available in the 2024 annual report - The company's registered address, office address and postal code, website, and email address remained unchanged during the reporting period, as detailed in the 2024 annual report[15] - The securities exchange website and media names and URLs for the company's semi-annual report disclosure, as well as the location for its semi-annual report, remained unchanged during the reporting period, as detailed in the 2024 annual report[16] Key Accounting Data and Financial Indicators In this reporting period, the company's operating revenue decreased by 20.21% year-on-year, but net profit attributable to shareholders significantly increased by 138.44%, with net profit excluding non-recurring gains and losses growing by 43.68% Key Accounting Data and Financial Indicators (Year-on-Year) | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,126,376,707.59 | 1,411,738,702.60 | -20.21% | | Net Profit Attributable to Shareholders of Listed Company | 1,281,539,108.51 | 537,461,062.60 | 138.44% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains and Losses) | 1,167,042,066.90 | 812,230,236.83 | 43.68% | | Net Cash Flow from Operating Activities | 152,984,192.97 | -20,369,221.04 | 851.06% | | Basic Earnings Per Share (RMB/share) | 1.0915 | 0.4632 | 135.64% | | Diluted Earnings Per Share (RMB/share) | 1.0915 | 0.4632 | 135.64% | | Weighted Average Return on Net Assets | 4.33% | 1.92% | 2.41% | | Indicator | End of Current Reporting Period (RMB) | End of Prior Year (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 34,151,489,519.09 | 33,001,896,399.52 | 3.48% | | Net Assets Attributable to Shareholders of Listed Company | 29,959,892,949.94 | 29,027,588,245.60 | 3.21% | Differences in Accounting Data Under Domestic and Overseas Accounting Standards During the reporting period, the company reported no differences in net profit and net assets between financial reports prepared under International Accounting Standards or overseas accounting standards and those prepared under Chinese Accounting Standards - The company reported no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[19] - The company reported no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period[20] Non-Recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to RMB 114.50 million, primarily from fair value changes and disposal gains/losses of financial assets and liabilities, as well as government subsidies Non-Recurring Gains and Losses and Amounts | Item | Amount (RMB) | | :--- | :--- | | Gains or losses from disposal of non-current assets | -196,686.95 | | Government subsidies recognized in current profit or loss (excluding those continuously related to the company's normal business operations) | 17,788,378.83 | | Gains or losses from changes in fair value of financial assets and financial liabilities held by non-financial enterprises, and investment gains or losses from disposal of financial assets and financial liabilities | 109,177,712.71 | | Income from investment costs of acquiring subsidiaries, associates, and joint ventures being less than the fair value of identifiable net assets of the investee at the time of investment | 12,278,585.04 | | Gains or losses from debt restructuring | 3,804,342.11 | | Other non-operating income and expenses apart from the above | -1,216,822.25 | | Less: Income tax impact | 26,556,588.05 | | Minority interest impact (after tax) | 581,879.83 | | Total | 114,497,041.61 | - The company has no other specific situations that meet the definition of non-recurring gains and losses[23] Management Discussion and Analysis This section offers management's perspective on the company's operations, financial condition, and future outlook, including business performance and risk factors Company's Main Business Activities During the Reporting Period The company primarily engages in pharmaceutical manufacturing, covering R&D, manufacturing, and sales of traditional Chinese medicine and chemical drugs, while actively expanding into the broader health industry, forming a "pharmaceutical health + financial capital" dual-driven model Industry Development Overview The pharmaceutical manufacturing industry, to which the company belongs, is characterized by high technical requirements, high investment, high risk, high returns, and long R&D cycles, with rigid demand and weak cyclicality - The company's industry is "Pharmaceutical Manufacturing (C27)", with upstream sectors being traditional Chinese medicine material cultivation and processing, and raw material manufacturing, and downstream being the pharmaceutical distribution industry[25] - The pharmaceutical industry demands high technical proficiency, and innovative drug development is characterized by high investment, high risk, high returns, and long R&D cycles[25] - The pharmaceutical industry has rigid demand, weak cyclicality, low correlation with economic cycles, and no significant seasonal fluctuations[25] Industry Policy Overview In the first half of 2025, China introduced multiple policies focusing on the coordinated development of medicine, healthcare, and medical insurance, promoting quality improvement in traditional Chinese medicine, digital transformation in the pharmaceutical industry, scientific research integrity, and high-quality development of innovative drugs - On March 20, 2025, the General Office of the State Council issued the "Opinions on Improving the Quality of Traditional Chinese Medicine and Promoting the High-Quality Development of the Traditional Chinese Medicine Industry," encouraging TCM enterprises to increase R&D investment and promote standardized production[26] - On April 3, 2025, seven departments including the Ministry of Industry and Information Technology issued the "Implementation Plan for Digital and Intelligent Transformation of the Pharmaceutical Industry (2025-2030)," promoting digital and intelligent upgrades across the entire pharmaceutical industry chain[27] - On June 30, 2025, the National Healthcare Security Administration and the National Health Commission jointly issued "Several Measures to Support the High-Quality Development of Innovative Drugs," establishing for the first time a "Commercial Health Insurance Innovative Drug Catalog" to open new payment channels for high-priced innovative drugs[28] Company's Main Business Activities The company primarily engages in the R&D, manufacturing, and sales of traditional Chinese medicine and chemical drugs, covering proprietary Chinese medicines, TCM formula granules, TCM decoction pieces, and chemical drugs, while actively expanding into health foods, food, breeding, and planting industries, forming a "pharmaceutical health + financial capital" dual-driven development model - The company's industry is pharmaceutical manufacturing, primarily engaged in the R&D, manufacturing, and sales of traditional Chinese medicine and chemical drugs[30] - The company's business scope now covers proprietary Chinese medicines, TCM formula granules, TCM decoction pieces, chemical drugs, and actively expands into health foods, food, breeding, and planting industries[30] - Gradually forming a "pharmaceutical health + financial capital" dual-driven development model, continuously building competitive advantages across the entire pharmaceutical industry chain[30] Company's Main Products and Their Functions or Uses The company's main products include Anshen Bunao Liquid, Xiao'er Chaigui Tuire Oral Liquid, Yangxueyin Oral Liquid, Xuefu Zhuyu Oral Liquid, Guishenren Oral Liquid, and Ribonucleic Acid II for Injection, covering functions such as calming nerves, reducing fever, nourishing qi and blood, promoting blood circulation, and immune regulation - The company's main products include "Anshen Bunao Liquid," "Xiao'er Chaigui Tuire Oral Liquid," "Yangxueyin Oral Liquid," "Xuefu Zhuyu Oral Liquid," "Guishenren Oral Liquid," and "Ribonucleic Acid II for Injection"[31] Main Product Catalog Example | Category | Main Product | Product Function or Use | | :--- | :--- | :--- | | 1 | Anshen Bunao Liquid | Nourishes essence and marrow, replenishes qi and blood, strengthens brain and calms nerves. Used for dizziness, fatigue, memory loss, and insomnia caused by kidney essence deficiency and qi-blood deficiency; also for neurasthenia with the above symptoms[32] | | 2 | Xiao'er Chaigui Tuire Oral Liquid | Induces sweating to relieve exterior symptoms and clears heat from the interior. Used for pediatric exogenous fever with symptoms such as fever, headache, body aches, runny nose, thirst, red throat, yellow urine, and dry stools[32] | | 6 | Ribonucleic Acid II for Injection | Immunomodulator. Used as an adjuvant therapy for pancreatic cancer, liver cancer, gastric cancer, lung cancer, breast cancer, soft tissue sarcoma, and other cancers, and has good auxiliary therapeutic effects on hepatitis B. This product can also be used for various diseases caused by immune dysfunction[33] | Operating Model The company operates under a "research-oriented board" parent-subsidiary management system, with subsidiaries operating independently, driven by digital procurement, lean and intelligent production, and "all-channel marketing" for sales, while R&D focuses on traditional Chinese medicine innovation and new drug development - The company has established a parent-subsidiary management system with clear property rights, defined responsibilities, and scientific management, positioning the group company as a "research-oriented board" with independent decision-making and market-based assessment for subsidiaries[35] - The procurement model leverages the advantages of the entire pharmaceutical industry chain to build a modern procurement management system driven by digitalization and full-cycle control[36] - The production model continuously optimizes lean production, gradually building an intelligent manufacturing model with interconnected equipment, data interoperability, and interactive processes, adhering to production based on sales and flexible manufacturing[37] - The sales model adopts "strategic coordination, channel segmentation, production-sales synergy, and brand reshaping" as its overall guideline, initiating a new "all-channel marketing" landscape and exploring modern sales models such as e-commerce and live streaming sales[38] - The R&D model adheres to the inheritance and innovation of traditional Chinese medicine, deeply integrating traditional concepts with modern technology, building an "independent innovation + open collaboration" model, focusing on market demand and clinical value[39][40] Company's Market Position Jilin Aodong, a long-established listed company, has evolved into a holding group driven by a "pharmaceutical health + financial capital" dual-wheel model, consistently ranking among China's top pharmaceutical industrial enterprises and earning numerous national and provincial accolades - Jilin Aodong originated from the state-owned Yanbian Dunhua Deer Farm in 1957, listed on the Shenzhen Stock Exchange on October 28, 1996, and has gradually developed into a holding group listed company rapidly growing with a "pharmaceutical health + financial capital" dual-driven model[41] - The company has been ranked among China's top 100 pharmaceutical industrial enterprises for over a decade, with Jilin Aodong's brand value of RMB 11.78 billion ranking 7th in the pharmaceutical health sector of China's 2025 Brand Value list[42] - The company has successively won numerous honors, including National Torch Program Key High-tech Enterprise, National High-tech Enterprise, and Chinese Time-honored Brand[42] Company's Main Performance Drivers The company's performance growth is primarily driven by its focus on the pharmaceutical main business, the implementation of "large product group, multi-product group" sales-driven policies, and the "pharmaceutical health + financial capital" dual-driven model - The company focuses on its pharmaceutical main business, continuously improving operational quality, implementing "large product group, multi-product group" sales-driven policies, and adhering to the "pharmaceutical health + financial capital" dual-driven rapid development path[43] Key Financial Data for H1 2025 | Indicator | Period-end/Current Period Amount (RMB 10,000) | Change from Year-start/Prior Year Period (%) | | :--- | :--- | :--- | | Total Assets | 3,415,148.95 | 3.48% | | Net Assets Attributable to Shareholders of Listed Company | 2,995,989.29 | 3.21% | | Asset-Liability Ratio | 11.54% | - | | Operating Revenue | 112,637.67 | -20.21% | | Net Profit Attributable to Shareholders of Listed Company | 128,153.91 | 138.44% | - Pharmaceutical and chain pharmacy wholesale and retail businesses achieved revenue of RMB 1.016 billion, accounting for 90.22% of operating revenue, a 16.31% decrease from the prior year period[44] - In the first half of 2025, the company achieved 1 product with sales revenue exceeding RMB 100 million, and 15 products with sales exceeding RMB 10 million[45] - Traditional Chinese medicine achieved sales revenue of RMB 685.95 million, accounting for 60.90% of operating revenue. The company has cumulatively obtained 525 "TCM Formula Granule Listing Filing Certificates"[46][47] - Chemical drugs achieved sales revenue of RMB 143.40 million, accounting for 12.73% of operating revenue. The core product, Ribonucleic Acid II for Injection, achieved sales of 920,000 units in the first half of the year, an increase of 60,000 units year-on-year[48] - Chain pharmacy wholesale and retail business operating revenue was RMB 186.89 million, accounting for 16.59% of operating revenue. During the reporting period, chain pharmacies added 73,000 new members, with cumulative members reaching 1.262 million, closed 37 stores, added 1 new store, and had a total of 154 stores at period-end[49] - The big health sector achieved sales revenue of RMB 83.24 million, accounting for 7.39% of operating revenue. A total of over 200 types of health functional foods, dietary supplements, and other big health products were produced and sold, with 18 single products achieving sales revenue exceeding RMB 1 million[50] - As of June 30, 2025, the company and its wholly-owned subsidiaries collectively held 20.1149% of GF Securities' shares, making it the largest shareholder. Investment income from GF Securities for this period was RMB 1.206 billion, a 53.67% increase year-on-year[51][52] - The company and its subsidiaries collectively hold 6.77% of Liaoning Chengda shares, directly hold 4.93% of First Pharmaceutical shares, directly hold 2.30% of Nanjing Pharmaceutical shares, and are also shareholders in other listed companies such as Luye Pharma[53] - The company participates in establishing multiple pharmaceutical industry funds, indirectly investing in biopharmaceutical, pharmaceutical R&D, and other projects through these funds, with some projects already exited[54][55] Adapting to the Market, Share Repurchase, and Strengthening Market Value Management The company actively responded to policies by completing a share repurchase in November 2024, repurchasing a total of 23,513,800 shares for RMB 420 million, and in April 2025, approved a "Market Value Management System" and "Valuation Enhancement Plan" to systematically improve investment value - On November 8, 2024, the company approved a resolution to repurchase a portion of its public shares through centralized bidding to maintain company value and shareholder interests[56] - By February 8, 2025, the repurchase plan was completed: a total of 23,513,800 shares were repurchased, accounting for 1.9662% of the total share capital, with a total payment of RMB 420,005,418.42[56] - On April 21, 2025, the company approved the "Market Value Management System" and "Valuation Enhancement Plan," aiming to systematically enhance the company's investment value through "focusing on main business, optimizing returns, strengthening expectations, deepening reforms, and improving communication"[56] People-Oriented, Culture-Led, Contributing to a Century-Old Aodong The company views talent and culture as dual engines for its long-term success, adhering to professional, youthful, and specialized employment principles, and fostering a unique corporate culture - Talent and culture have always been the dual engines driving the company towards a century of sustained success[57] - The company adheres to professional, youthful, and specialized employment principles, advocates a unique corporate culture of "no public relations within the enterprise," establishes a scientific employment mechanism, and builds talent development channels[57] - As of June 30, 2025, the company had a total of 5,454 employees, of whom 3,328 held college degrees or above, accounting for 61.02%; 457 held mid-to-senior professional titles, and 357 were registered pharmacists[57] Core Competitiveness Analysis The company's core competitiveness lies in its solid pharmaceutical industry foundation, extensive drug approval numbers, and continuous product innovation and R&D, supported by strong brand influence, excellent quality management, intelligent manufacturing, and modern enterprise management Solid Pharmaceutical Industry Foundation, Forming Five Core Advantages The company has built a solid pharmaceutical industry foundation through its deep traditional Chinese medicine cultural heritage, stringent quality management system, advanced intelligent manufacturing technology, innovative parent-subsidiary management, and the "pharmaceutical health + financial capital" dual-driven capital advantage - The "Aodong and its logo" trademark has been recognized as a China Well-known Trademark, selected as one of "China's 500 Most Valuable Brands" for 18 consecutive years with a brand value of RMB 13.194 billion, and recognized as a third batch "Chinese Time-honored Brand"[58] - The company consistently adheres to its mission of producing "safe, reliable, and trustworthy medicines," implements comprehensive quality management, possesses a national-level enterprise technology center and a national-level postdoctoral research workstation, and establishes internal control standards higher than national statutory standards[59] - The company continuously promotes technological innovation, adopts full-process online detection and analysis technology, has established an automated production line for traditional Chinese medicine extraction, and its production process is gradually transitioning from automation and informatization to intelligence and digitalization, with Yanbian Pharmaceutical recognized as a Jilin Province Intelligent Manufacturing Demonstration Factory[61] - The company innovates and improves its modern enterprise system, transforming into a holding group company with a "parent-subsidiary" management system, and forms a community of interests with employees through the implementation of employee stock ownership plans[62] - The company has established a "pharmaceutical health + financial capital" dual-driven development model, becoming the largest shareholder of GF Securities through equity investment, thereby building its core capital advantage[63] Rich Drug Approval Numbers, Forging a Product Cluster Advantage The company holds 628 drug production approval numbers, including 47 exclusive products or dosage forms, with 226 products listed in the National Medical Insurance Catalog and 98 products in the National Essential Medicines List, establishing a significant market advantage for its core products - The company currently holds 628 drug production approval numbers, including 315 traditional Chinese medicines and 313 chemical drugs, comprising 47 exclusive products or dosage forms[64] - A total of 226 of the company's products are listed in the "National Basic Medical Insurance, Work-Related Injury Insurance and Maternity Insurance Drug Catalog (2024)," including 101 Class A and 125 Class B products; 98 products are included in the "National Essential Medicines List"[64] - The company's flagship product, "Anshen Bunao Liquid," has been a market success for over 40 years, winning multiple science and technology progress awards and brand gold awards, and has obtained two invention patents for treating anti-aging and Alzheimer's disease[65][66] - "Xiao'er Chaigui Tuire Oral Liquid," as a nationally exclusive patented product, has become a first-line medication for pediatric respiratory diseases due to its high cure rate, low recurrence rate, short treatment cycle, and stable antipyretic effect without rebound, and is recommended in multiple clinical guidelines[67] - "Xuefu Zhuyu Oral Liquid" originates from a century-old classic formula, is a scientific and technological achievement transformation product from a "National Science and Technology Progress First Prize," and is the only innovative traditional Chinese medicine in China using membrane separation technology[68] Exclusive Products and Dosage Forms Catalog (Partial) | No. | Exclusive Product, Exclusive Dosage Form Name | Functions and Indications | | :--- | :--- | :--- | | 1 | Danxiang Qingzhi Granules | Promotes blood circulation, resolves blood stasis, regulates qi, and unblocks collaterals. Used for hyperlipidemia with qi stagnation and blood stasis syndrome[69] | | 3 | Guishenren Oral Liquid | Replenishes qi and blood, nourishes yin and supports yang. Applicable for qi and blood deficiency, yin and yang deficiency[69] | | 20 | Ribonucleic Acid II for Injection | Immunomodulator. Used as an adjuvant therapy for pancreatic cancer, liver cancer, gastric cancer, lung cancer, breast cancer, soft tissue sarcoma, and other cancers, and has good auxiliary therapeutic effects on hepatitis B[70] | | 35 | Shenfukang Tablets | Clears heat and promotes diuresis, benefits kidney and resolves turbidity. Used for painful urination due to damp-heat, edema in acute nephritis, and acute exacerbation of chronic nephritis[71] | Product Innovation and R&D, Supporting Sustainable Company Development The company steadily advances R&D projects focusing on new products and the secondary development of existing major products, conducting drug research in traditional Chinese medicine innovation, cancer, kidney disease, diabetes, and cardiovascular diseases - The company steadily advances various R&D projects focusing on new products and the secondary development of major products, concentrating on the inheritance and innovation of traditional Chinese medicine, formula granule standards, and medicinal material resource research[72] - During the reporting period, the subsidiary obtained approval numbers for chemical generic drugs Lenvatinib Mesylate Capsules and Polyvinyl Alcohol Eye Drops, and acquired approval numbers for Amlodipine Atorvastatin Calcium Tablets, Kanggan Jiedu Granules, Shengmai Granules, and Tangle Capsules through purchase[72] - In the first half of 2025, the company's core product, Anshen Bunao Liquid, obtained two invention patents for "Application of Anshen Bunao Liquid in the Preparation of Drugs for Preventing and Treating Alzheimer's Disease" and "Application of Anshen Bunao Liquid in the Preparation of Anti-Aging Drugs"[72] Main R&D Project Catalog (Partial) | Main R&D Project Name | Project Objective | Project Progress | Expected Economic Benefits Generation Method | | :--- | :--- | :--- | :--- | | Lenvatinib Mesylate Capsules | To develop a generic drug for hepatocellular carcinoma | Approval number obtained, date: January 8, 2025 | Obtain approval number | | Polyvinyl Alcohol Eye Drops | To develop a lubricant to improve dry eye symptoms | Approval number obtained, date: March 18, 2025 | Obtain approval number | | XMFET007 | To develop a generic drug for Parkinson's disease | API declared, pilot scale study completed for formulation | Obtain approval number | | Secondary Development of Anshen Bunao Liquid | To investigate the effect of Anshen Bunao Liquid on the immune function of cyclophosphamide-induced immunosuppressed mice by comparing with the model control group | Summary report formed, paper submitted for publication | Obtain summary report, publish paper | Main Business Analysis During the reporting period, the company's operating revenue decreased by 20.21% year-on-year, but net profit attributable to shareholders significantly increased by 138.44%, while operating costs decreased by 33.90% and financial expenses significantly dropped by 65.69% Major Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | Year-on-Year Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,126,376,707.59 | 1,411,738,702.60 | -20.21% | - | | Operating Cost | 580,951,687.70 | 878,902,976.99 | -33.90% | Primarily due to a year-on-year decrease in operating revenue, leading to a corresponding decrease in operating costs | | Selling Expenses | 394,884,306.88 | 337,192,868.41 | 17.11% | - | | Administrative Expenses | 98,261,850.52 | 133,644,016.19 | -26.47% | - | | Financial Expenses | 15,434,997.89 | 44,987,258.76 | -65.69% | Primarily due to a year-on-year decrease in interest expenses for the current period | | Income Tax Expense | 41,480,862.60 | -64,407,398.88 | 164.40% | Primarily due to a year-on-year increase in deferred income tax expense for the current period | | R&D Investment | 36,621,959.87 | 56,455,802.58 | -35.13% | Primarily due to a decrease in outsourced research and development expenditures for the current period | | Net Cash Flow from Operating Activities | 152,984,192.97 | -20,369,221.04 | 851.06% | Primarily due to a year-on-year decrease in cash paid for goods purchased in the current period | | Net Cash Flow from Investing Activities | 447,858,399.58 | -115,617,373.09 | 487.36% | Primarily due to dividend payments received from GF Securities Co., Ltd. in the current period | | Net Cash Flow from Financing Activities | -191,308,583.31 | 443,813,544.16 | -143.11% | Primarily due to a year-on-year decrease in cash received from bank loans by subsidiaries in the current period | | Net Increase in Cash and Cash Equivalents | 409,479,925.41 | 307,658,479.30 | 33.10% | Primarily due to dividend payments received from GF Securities Co., Ltd. in the current period | Operating Revenue Composition (by Industry, Product, Region) | Category | Item | Current Reporting Period Amount (RMB) | Proportion of Operating Revenue (%) | Prior Year Period Amount (RMB) | Proportion of Operating Revenue (%) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | Pharmaceuticals | 829,358,047.96 | 73.63% | 1,025,367,178.65 | 72.63% | -19.12% | | | Chain Pharmacy Wholesale and Retail | 186,885,762.66 | 16.59% | 188,898,064.27 | 13.38% | -1.07% | | | Food | 83,237,633.34 | 7.39% | 109,195,901.34 | 7.73% | -23.77% | | By Product | Traditional Chinese Medicine | 685,953,931.95 | 60.90% | 872,771,227.62 | 61.82% | -21.41% | | | Chemical Drugs | 143,404,116.01 | 12.73% | 152,595,951.03 | 10.81% | -6.02% | | By Region | Northeast | 402,036,173.26 | 35.69% | 514,967,216.39 | 36.48% | -21.93% | | | East China | 260,567,307.03 | 23.13% | 208,063,750.36 | 14.74% | 25.23% | Non-Main Business Analysis During the reporting period, the company's non-main business profit primarily stemmed from investment income, accounting for 92.24% of total profit and demonstrating sustainability, while fair value changes also contributed 8.09% but with lower sustainability Non-Main Business Analysis | Item | Amount (RMB) | Proportion of Total Profit (%) | Explanation of Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 1,217,561,633.58 | 92.24% | Primarily investment income from GF Securities Co., Ltd | Sustainable | | Gains or Losses from Fair Value Changes | 106,731,128.67 | 8.09% | Primarily due to changes in the market value of trading financial assets such as stocks and funds in the current period | Not sustainable | | Asset Impairment | -10,922,706.70 | -0.83% | Primarily due to inventory impairment losses recognized by subsidiaries in the current period | Not sustainable | | Non-Operating Income | 12,537,390.34 | 0.95% | Primarily due to the gain from the investment cost of the company's increased holding of GF Securities H-shares being less than the fair value of the investee's identifiable net assets at the time of investment in the current period | Not sustainable | | Non-Operating Expenses | 1,799,977.94 | 0.14% | Primarily due to losses from disposal of fixed assets and intangible assets in the current period | Not sustainable | | Credit Impairment Losses | -7,198,641.85 | -0.55% | Primarily due to expected credit impairment losses on accounts receivable recognized in the current period | Not sustainable | Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets reached RMB 34.15 billion, a 3.48% increase from the end of the prior year, with increases in monetary funds and long-term borrowings, and decreases in right-of-use assets, short-term borrowings, and lease liabilities Significant Changes in Asset Composition | Item | Period-end Amount (RMB) | Proportion of Total Assets (%) | Prior Year-end Amount (RMB) | Proportion of Total Assets (%) | Change in Proportion (%) | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 1,516,463,681.06 | 4.44% | 1,107,003,746.65 | 3.35% | 1.09% | Not applicable | | Long-term Equity Investments | 25,168,669,678.58 | 73.70% | 24,352,459,098.53 | 73.79% | -0.09% | Not applicable | | Short-term Borrowings | 1,151,974,687.58 | 3.37% | 1,254,936,175.20 | 3.80% | -0.43% | Not applicable | | Long-term Borrowings | 90,000,000.00 | 0.26% | - | - | 0.26% | Primarily due to the company's borrowing from Agricultural Bank of China Dunhua City Branch in the current period | - Aodong International (Hong Kong) Industrial Co., Ltd., as a major overseas asset, has an asset scale of RMB 780 million, operates through securities investment, and its net profit attributable to the parent company in the first half of 2025 was RMB 37.8147 million[92] Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (RMB) | Fair Value Change Gains/Losses for Current Period (RMB) | Amount Purchased for Current Period (RMB) | Amount Sold for Current Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 1,568,102,858.51 | 106,731,128.67 | 800,909,493.93 | 792,450,152.17 | 1,686,030,565.46 | | Investments in Other Equity Instruments | 294,916,319.67 | - | - | - | 279,854,594.50 | | Subtotal of Financial Assets | 1,863,019,178.18 | 106,731,128.67 | 800,909,493.93 | 792,450,152.17 | 1,965,885,159.96 | | Financial Liabilities | 0.00 | - | - | - | 0.00 | - As of the end of the reporting period, RMB 1,337,301.26 in monetary funds were restricted due to deposit guarantees[95] Investment Status Analysis During the reporting period, the company's total investment was RMB 149.46 million, a 20.77% decrease year-on-year, with equity investments including capital increase in Henan Guoxin Traditional Chinese Medicine Co., Ltd., and ongoing non-equity investment projects at Yanbian Pharmaceutical and Taonan Pharmaceutical - The investment amount for the reporting period was RMB 149,457,347.82, compared to RMB 188,635,058.59 in the prior year period, representing a change of -20.77%[96] Significant Equity Investments Acquired During the Reporting Period | Investee Company Name | Main Business | Investment Method | Investment Amount (RMB) | Shareholding Ratio (%) | Source of Funds | Profit/Loss for Current Period (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | GF Securities Co., Ltd. | Securities brokerage; securities investment consulting, etc. | Acquisition | 16,772,291.72 | 0.02% | Own funds | 13,716,240.46 | | Henan Guoxin Traditional Chinese Medicine Co., Ltd. | Pharmaceutical retail; pharmaceutical wholesale, etc. | Capital increase | 68,820,252.65 | 39.00% | Own funds | 3,622,118.56 | | Total | -- | -- | 85,592,544.37 | -- | -- | 17,338,359.02 | Significant Non-Equity Investments in Progress During the Reporting Period (Partial) | Project Name | Investment Method | Industry Involved in Investment Project | Cumulative Actual Investment Amount as of End of Reporting Period (RMB) | Project Progress (%) | | :--- | :--- | :--- | :--- | :--- | | Jilin Aodong Yanbian Pharmaceutical Co., Ltd. Expansion and Upgrade Project Phase II | Self-built | Pharmaceutical Manufacturing | 266,253,009.77 | 93.00% | | Taonan Pharmaceutical Automation Production Line Construction Project: Injection Workshop | Self-built | Pharmaceutical Manufacturing | 140,540,670.40 | 80.00% | | Jilin Aodong Yanbian Pharmaceutical Co., Ltd. Traditional Chinese Medicine Formula Granule Project - Formula Granule Pre-treatment and Extraction Workshop | Self-built | Pharmaceutical Manufacturing | 124,403,408.18 | 80.00% | Securities Investment Status (Partial) | Security Abbreviation | Initial Investment Cost (RMB) | Book Value at Beginning of Period (RMB) | Fair Value Change Gains/Losses for Current Period (RMB) | Book Value at End of Period (RMB) | | :--- | :--- | :--- | :--- | :--- | | Liaoning Chengda | 2,081,280,679.40 | 1,072,523,676.60 | 67,356,559.40 | 1,139,880,236.00 | | Nanjing Pharmaceutical | 161,839,114.80 | 100,439,781.76 | 4,023,989.60 | 154,267,539.36 | | First Pharmaceutical | 153,338,944.85 | 148,663,687.50 | -8,809,700.00 | 139,853,987.50 | | Luye Pharma | 80,970,455.17 | 34,805,662.53 | 21,741,976.78 | 56,547,639.31 | - The company had no derivative investments during the reporting period[105] - As of June 30, 2025, the company had cumulatively used RMB 2.186 billion in raised funds, with a utilization rate of 91.50%[108][109] - The change in raised fund projects indicates that the company reallocated RMB 509.75 million of unused raised funds from the "Jilin Aodong Yanji Pharmaceutical Technology Park Construction Project" to permanently supplement working capital, and RMB 442 million from the "Jilin Aodong Yanbian Pharmaceutical Co., Ltd. Expansion and Upgrade Project Phase II" to the "Jilin Aodong Yanbian Pharmaceutical Co., Ltd. Traditional Chinese Medicine Formula Granule Project" construction[118][119] Significant Asset and Equity Sales During the reporting period, the company did not engage in any significant asset or equity sales - The company did not sell significant assets during the reporting period[120] - The company did not sell significant equity during the reporting period[121] Analysis of Major Holding and Participating Companies The company's major holding subsidiary, Jilin Aodong Yanbian Pharmaceutical Co., Ltd., and associate, GF Securities Co., Ltd., significantly impact the company's net profit, with Yanbian Pharmaceutical primarily engaged in pharmaceutical production and GF Securities in securities business Major Subsidiaries and Associates with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (RMB) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jilin Aodong Yanbian Pharmaceutical Co., Ltd. | Subsidiary | Pharmaceutical production | 824,904,665.00 | 3,136,017,671.66 | 1,756,653,525.88 | 517,653,962.51 | 86,213,035.84 | 73,841,298.18 | | GF Securities Co., Ltd. | Associate | Securities business | 7,605,845,511.00 | 815,839,281,115.74 | 156,580,259,797.10 | 15,398,122,178.83 | 8,336,648,643.26 | 7,005,507,423.70 | - The company directly holds 99.99% of Jilin Aodong Yanbian Pharmaceutical Co., Ltd. shares, with a 100% voting rights ratio[122] - As of June 30, 2025, the company and its concerted parties collectively held 1,529,911,767 A-shares and H-shares of GF Securities, accounting for 20.11% of GF Securities' total share capital[122] Information on Structured Entities Controlled by the Company During the reporting period, the company did not control any structured entities - The company had no controlled structured entities during the reporting period[123] Risks Faced by the Company and Countermeasures The company faces multiple risks including industry policy changes, raw material cost fluctuations, product quality issues, market competition, drug R&D challenges, and securities investment volatility, which it addresses through market research, establishing TCM material bases, enhancing quality control, increasing R&D investment, and optimizing investment management - Industry policy risk: The pharmaceutical industry is highly influenced by national policies, with centralized drug procurement and medical insurance catalog adjustments putting pressure on traditional pharmaceutical companies' profits. The company responds by strengthening market research, innovation, and brand-driven strategies[124] - Raw material cost fluctuation risk: Prices of traditional Chinese medicinal materials are affected by various factors and fluctuate. The company responds by establishing GAP bases, optimizing procurement and inventory management, and promoting supply chain collaboration[125] - Product quality risk: Drug quality directly relates to public health, with risks stemming from raw materials, processing, storage, and process control. The company responds by improving its quality control system, strictly adhering to GMP standards, and strengthening personnel training[126] - Market competition risk: The pharmaceutical industry faces intense competition and increasing product homogenization. The company responds by increasing R&D investment, pursuing differentiated innovation, and providing personalized services[127] - Drug R&D risk: New drug R&D involves high investment, long cycles, and high risks. The company responds by prudently selecting projects, implementing full-process risk control, attracting and cultivating talent, and deepening industry-academia-research cooperation[128] - Securities investment risk: Fluctuations in the securities market may affect investment returns. The company has established a comprehensive mechanism for securities investment decision-making, execution, and control, adhering to prudent investment principles[129] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company approved its "Market Value Management System" on April 21, 2025, and disclosed its "Valuation Enhancement Plan" on April 23, 2025, aiming to systematically improve its investment value and shareholder returns through various strategic measures - On April 21, 2025, the company approved the "Proposal on Formulating the Market Value Management System" and established the "Market Value Management System"[130] - On April 23, 2025, the company disclosed its "Valuation Enhancement Plan," aiming to enhance the company's investment value and shareholder return capabilities, and boost investor confidence[130] - Subsequently, the company will focus on its pharmaceutical main business, improve operational efficiency, promote a reasonable reflection of the company's quality in its investment value, enhance investor confidence, safeguard the interests of all shareholders, and foster high-quality company development[131] "Quality and Return Double Enhancement" Action Plan Implementation Status The company did not disclose a "Quality and Return Double Enhancement" action plan announcement during the reporting period - Did the company disclose a "Quality and Return Double Enhancement" action plan announcement: No[132] Corporate Governance, Environment, and Society This section details the company's governance structure, environmental protection efforts, and social responsibility initiatives Changes in Company Directors, Supervisors, and Senior Management During the reporting period, there was a change in the company's senior management, with Mr. Wang Chao appointed as Deputy General Manager due to a job transfer Changes in Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Wang Chao | Deputy General Manager | Appointment | April 29, 2025 | Job transfer | Profit Distribution and Capital Reserve Conversion to Share Capital for the Current Reporting Period The company's 2025 semi-annual profit distribution plan proposes a cash dividend of RMB 2.00 (tax inclusive) per 10 shares, with no bonus shares or capital reserve conversions to share capital Profit Distribution Plan | Indicator | Amount | | :--- | :--- | | Number of bonus shares per 10 shares (shares) | 0 | | Cash dividend per 10 shares (RMB) (tax inclusive) | 2.00 | | Share capital base for distribution plan (shares) | 1,172,381,587 | | Cash dividend amount (RMB) (tax inclusive) | 234,476,317.40 | | Cash dividend amount by other means (e.g., share repurchase) (RMB) | 120,000,804.68 | | Total cash dividend (including other means) (RMB) | 354,477,122.08 | | Distributable profit (RMB) | 20,265,496,692.04 | | Proportion of total cash dividend (including other means) to total profit distribution | 100.00% | - The company's total cash dividend and share repurchase amount for the first half of 2025 is RMB 354,477,122.08, accounting for 27.66% of the net profit attributable to shareholders of the listed company for the first half of 2025[137] Implementation of Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures The company had no equity incentive plans during the reporting period but continued to implement its first employee stock ownership plan, with 2,256 employees holding 25,752,666 shares, representing 2.15% of the total share capital - The company had no equity incentives during the reporting period[139] Status of All Valid Employee Stock Ownership Plans During the Reporting Period | Scope of Employees | Number of Employees | Total Shares Held (shares) | Proportion of Total Share Capital of Listed Company | Source of Funds for Implementation Plan | | :--- | :--- | :--- | :--- | :--- | | All employees of the company and its controlled subsidiaries participating in subscription | 2,256 | 25,752,666 | 2.15% | Legitimate remuneration of company employees, funds obtained by company employees through other means permitted by laws and administrative regulations | - The company's first employee stock ownership plan has been extended multiple times, with the latest extension to December 8, 2025[149] - During this reporting period, the company's first employee stock ownership plan received dividends totaling RMB 7.7258 million[142] Environmental Information Disclosure The company and its three major subsidiaries (Jilin Aodong Yanji Pharmaceutical Group Co., Ltd., Jilin Aodong Taonan Pharmaceutical Co., Ltd., and Jilin Aodong Industrial Park Public Asset Management Co., Ltd.) are included in the list of enterprises required to disclose environmental information, with relevant reports accessible via the "Enterprise Environmental Information Disclosure System (Jilin)" - The listed company and its major subsidiaries have been included in the list of enterprises required to disclose environmental information, totaling 3 companies[150] Enterprises Included in the List of Environmental Information Disclosure | No. | Enterprise Name | Query Index for Environmental Information Disclosure Report | | :--- | :--- | :--- | | 1 | Jilin Aodong Yanji Pharmaceutical Group Co., Ltd. | "Enterprise Environmental Information Disclosure System (Jilin)" http://36.135.7.198:9015/index | | 2 | Jilin Aodong Taonan Pharmaceutical Co., Ltd. | "Enterprise Environmental Information Disclosure System (Jilin)" http://36.135.7.198:9015/index | | 3 | Jilin Aodong Industrial Park Public Asset Management Co., Ltd. | "Enterprise Environmental Information Disclosure System (Jilin)" http://36.135.7.198:9015/index | Social Responsibility Status The company, guided by its mission to "provide safe, reliable, and trustworthy medicines for society," actively fulfills its social responsibilities, including protecting shareholder and creditor rights, safeguarding employee interests, maintaining supplier/customer/consumer rights, promoting environmental protection, and engaging in public welfare to support rural revitalization - The company strictly adheres to laws and regulations, improves its corporate governance structure and internal control management system, has received an "A" rating in the Shenzhen Stock Exchange's information disclosure assessment for 10 consecutive years, and has implemented cash dividends for 17 consecutive years, with cumulative cash dividends totaling RMB 4.505 billion, effectively safeguarding the legitimate rights and interests of shareholders and creditors[152][153] - The company strictly complies with labor laws and regulations, improves labor employment management systems, fully pays social insurance and housing provident funds for employees, and provides various welfare benefits to protect employees' legitimate rights and interests[154] - The company adheres to honest cooperation and mutual benefit, comprehensively safeguarding the legitimate rights and interests of suppliers, customers, and consumers through information collection, customer feedback, and satisfaction surveys[155] - The company upholds the concept of sustainable development, was selected as an excellent practice case for sustainable development of listed companies in 2024, and achieves energy saving, consumption reduction, and waste emission reduction through green equipment upgrades and optimized production processes[156] - Leveraging the advantages of authentic medicinal materials from Changbai Mountain, the company contributes to rural revitalization through a "company + standardized base + farmers" model, by developing ginseng and Ganoderma lucidum cultivation, and deer antler functional food, increasing farmers' income, and was selected as an "Excellent Practice Case for Listed Companies in Rural Revitalization"[158] Significant Matters This section covers all material events and transactions that occurred during the reporting period, impacting the company's operations or financial position Commitments by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company that were Fulfilled or Overdue and Unfulfilled at the End of the Reporting Period During the reporting period, there were no commitments by the company's actual controller, shareholders, related parties, acquirers, or the company that were either fulfilled or overdue and unfulfilled at the end of the reporting period - During the reporting period, there were no commitments by the company's actual controller, shareholders, related parties, acquirers, or the company that were either fulfilled or overdue and unfulfilled at the end of the reporting period[160] Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties During the reporting period, there were no non-operating funds occupied by the controlling shareholder or other related parties of the listed company - During the reporting period, there were no non-operating funds occupied by the controlling shareholder or other related parties of the listed company[161] Irregular External Guarantees During the reporting period, the company had no irregular external guarantees - The company had no irregular external guarantees during the reporting period[162] 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[163] Board of Directors' and Supervisory Board's Explanation on the Accounting Firm's "Non-Standard Audit Report" for the Current Reporting Period The company's semi-annual report was not audited, thus the explanation for a "non-standard audit report" is not applicable - Not applicable[164] Board of Directors' Explanation on the "Non-Standard Audit Report" for the Prior Year The company's semi-annual report was not audited, thus the explanation for a "non-standard audit report" for the prior year is not applicable - Not applicable[164] Bankruptcy and Reorganization Matters During the reporting period, the company did not experience any bankruptcy or reorganization matters - The company did not experience any bankruptcy or reorganization matters during the reporting period[164] Litigation Matters During the reporting period, the company had no significant litigation or arbitration matters, nor any other litigation matters - The company had no significant litigation or arbitration matters during this reporting period[165] - The company had no other litigation matters during the reporting period[166] Penalties and Rectification Status During the reporting period, the company had no penalties or rectification situations - The company had no penalties or rectification situations during the reporting period[166] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company's controlling shareholder and actual controller maintain good integrity, with no unfulfilled effective court judgments or large overdue debts - The company's controlling shareholder and actual controller maintain good integrity, with no unfulfilled effective