南卫股份(603880) - 2025 Q2 - 季度财报

Important Notice The company's board and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, which is unaudited, with no profit distribution plan for the period - This semi-annual report is unaudited[4] - Company head Li Ping, chief accountant Li Ping, and head of accounting Wang Yahua declare the financial report in the semi-annual report is true, accurate, and complete[4] - There is no profit distribution or capital reserve capitalization plan for this reporting period[4] - No particularly significant risks substantially affecting the company's operations were identified during the reporting period[5] Section I Definitions This section defines specific terms and company-related information used in the report, including the full company name, abbreviations, legal representative, key regulatory bodies, certifications, and operating models - Company, the Company, Nanwei Healthcare refers to Jiangsu Nanwei Healthcare Co., Ltd[14] - Japan's Ministry of Health, Labour and Welfare refers to the primary department responsible for medical health and social security in Japan[14] - FDA refers to the U.S. Food and Drug Administration[14] - ODM refers to Original Design Manufacture, where one manufacturer designs and produces products according to another manufacturer's specifications and requirements[14] Section II Company Profile and Key Financial Indicators This section provides the company's basic information, contact details, stock overview, and key accounting data and financial indicators for the first half of 2025 - The company's stock abbreviation is Nanwei Healthcare, stock code: 603880, listed on the Shanghai Stock Exchange[17] Key Accounting Data for H1 2025 (Consolidated Statements) | Indicator | Current Period (Jan－Jun) | Prior Period | Change from Prior Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 306,075,903.06 RMB | 301,870,459.32 RMB | 1.39 | | Total Profit | -13,452,057.12 RMB | 1,997,147.46 RMB | -773.56 | | Net Profit Attributable to Shareholders of Listed Company | -12,967,713.84 RMB | 1,026,478.54 RMB | -1,363.32 | | Net Cash Flow from Operating Activities | 35,195,110.17 RMB | 3,303,181.38 RMB | 965.49 | | Net Assets Attributable to Shareholders of Listed Company (End of Period) | 266,318,930.29 RMB | 279,286,644.13 RMB (Prior Year End) | -4.64 | | Total Assets (End of Period) | 986,986,162.81 RMB | 1,056,553,004.60 RMB (Prior Year End) | -6.58 | Key Financial Indicators for H1 2025 | Indicator | Current Period (Jan－Jun) | Prior Period | Change from Prior Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | -0.045 | 0.004 | -1,225.00 | | Diluted Earnings Per Share (RMB/share) | -0.045 | 0.004 | -1,225.00 | | Basic EPS After Non-Recurring Gains/Losses (RMB/share) | -0.05 | 0.008 | -725.00 | | Weighted Average Return on Net Assets (%) | -4.75 | 0.22 | Decreased by 4.97 percentage points | | Weighted Average Return on Net Assets After Non-Recurring Gains/Losses (%) | -5.65 | 0.52 | Decreased by 6.17 percentage points | - Net profit attributable to the listed company decreased significantly compared to the same period last year, primarily due to intense market competition and a decline in sales prices for some products[20] - Net cash flow from operating activities increased significantly compared to the same period last year, mainly due to increased receipts from other operating activities[20] Non-Recurring Gains and Losses for H1 2025 | Non-Recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Government Grants Recognized in Current Profit/Loss | 2,899,650.66 | | Other Non-Operating Income and Expenses Apart from the Above | -2,916.68 | | Less: Income Tax Impact | -464,118.04 | | Total | 2,432,615.94 | Section III Management Discussion and Analysis This section discusses the industry trends, company's main business, operating model, and market position within the pharmaceutical manufacturing sector, highlighting stable revenue but a significant decline in net profit due to market competition Explanation of the Company's Industry and Main Business During the Reporting Period The company operates in the medical materials and pharmaceutical manufacturing sector, focusing on transdermal products, medical tapes, first aid kits, and protective items, with an ODM-centric model and a leading position in wound plaster production - The company's main business is in 'Medical Materials and Pharmaceutical Manufacturing (C2770)' within the 'Pharmaceutical Manufacturing (C27)' industry[25] - Key product series include medicated plasters, wound plasters, dressings, medical adhesive tapes and bandages, first aid kits, sports protection products, protective equipment, and nursing care products[25] - The company's business is primarily ODM-based; in recent years, it has gradually increased efforts in developing and expanding its own-brand products, focusing on first aid kits, sports protection products, protective equipment, and nursing care products under the existing 'Miaoshou' series[33] - The company has become a leading wound plaster production base in China[35] Main Developments in the Industry The pharmaceutical industry, a strategic national sector, is transitioning to innovation-driven growth, with national plans emphasizing advanced medical equipment and digital transformation, supported by policy and technological advancements like AI quality inspection - The pharmaceutical industry is a strategic sector vital to national welfare, economic development, and security, currently transitioning from factor-driven to innovation-driven growth[23] - The '14th Five-Year Plan for Medical Equipment Industry Development' explicitly states that by 2025, the industrial foundation and modernization level of the medical equipment industry chain should be significantly enhanced[23] - The '15th Five-Year Plan' outlines 'quality and efficiency improvement, digital and intelligent transformation' as the core development path for the traditional medical supplies industry[23] - AI quality inspection system coverage has increased to 60%, achieving a 50% leap in sterile testing efficiency for traditional dressings, syringes, and other products[24] Company's Main Business The company is a high-tech enterprise integrating R&D, manufacturing, and sales of pharmaceutical products, primarily offering transdermal products, medical tapes, first aid kits, sports protection, protective equipment, and nursing care products for medical and civilian use - The company primarily engages in the R&D, production, and sales of transdermal products, medical adhesive tapes and bandages, first aid kits, sports protection products, protective equipment, and nursing care products[25] - Transdermal products mainly include medicated plasters, dressings, and wound plasters, delivering medication through the skin for preventive or therapeutic effects[26] - Protective equipment primarily consists of nitrile gloves, suitable for medical, civilian, and various other industries[30] Company's Operating Model The company primarily operates under an ODM model, designing and producing products based on client needs, while also developing its own "Miaoshou" brand series, with procurement and production driven by sales orders for both domestic and international markets - The company's business is primarily ODM-based; in recent years, it has gradually increased efforts in developing and expanding its own-brand products[33] - The company adopts a 'purchase-to-order' procurement model, organizing raw material purchases based on production orders[31] - The company adopts a 'produce-to-order' production model, organizing production based on customer demand through order-based services[32] - International market sales models are mainly divided into sales to foreign brand owners and sales to domestic foreign trade companies[33] Company's Market Position With over thirty years of development, the company has become an influential medical device manufacturer and a leading wound plaster production base in China, leveraging its strengths and regional industrial clusters to serve both domestic and international markets - After more than thirty years of operation and development, the company has become a medical device manufacturer with significant market influence[35] - The company has become a leading wound plaster production base in China[35] - Through long-term and stable cooperation with overseas clients, the company has formed an ODM-centric operating model, while continuously increasing the proportion of direct sales to achieve a synergistic development of domestic and international markets[35] Discussion and Analysis of Operations In H1 2025, the company maintained stable operating revenue but experienced a significant decline in net profit due to market competition, while actively strengthening governance, optimizing production, increasing R&D investment, and improving financial operations - In H1 2025, operating revenue reached 306.08 million RMB, an increase of 4.21 million RMB compared to the same period last year[35] - Net profit attributable to parent company shareholders was -12.97 million RMB, a decrease of 13.99 million RMB compared to the same period last year[35] - R&D expenses during the reporting period amounted to 13.29 million RMB, a 9.7% decrease compared to the same period last year[36] - The company and its subsidiaries collectively hold 16 invention patents, 75 utility model patents, 4 design patents, 29 Class I medical device filings, 19 Class II medical device registrations, and 3 drug registration certificates[36] - The company's main products, including medical adhesive tapes, bandages, wound plasters, dressings, and first aid kits, have all passed US FDA and TÜV SÜD certifications[36] Analysis of Core Competencies During the Reporting Period The company's core competencies stem from its strong technical R&D capabilities, comprehensive quality and qualification systems, experienced management team, economies of scale, and advantageous regional location in the Yangtze River Delta - The company prioritizes enhancing technical R&D capabilities as a key to core competitiveness, continuously improving processes and upgrading equipment, and has jointly established a 'New Transdermal Preparation R&D Center' with Zhejiang University[39] - The company has adopted the ISO13485 quality system standard and obtained multiple domestic and international qualifications, including drug certification from the National Medical Products Administration, US FDA factory registration, Japan Foreign Manufacturer Accreditation from Japan's Ministry of Health, Labour and Welfare, and medical device product registration from German medical device authorities[40] - The company's management team possesses rich experience and sound business philosophies, having established a standardized management system covering product R&D, technological innovation, raw material procurement, production, sales, and after-sales service, with a strong emphasis on cost control[41] - As one of the largest transdermal product manufacturers in China, the company's scale production helps reduce production costs, enhance profitability, strengthen raw material procurement bargaining power, and attract high-quality customers[42] - Located in the economically developed and transportation-convenient Yangtze River Delta region, the company benefits from the textile industry cluster effect, which helps reduce raw material procurement and transportation costs, and leverages port transportation advantages to quickly meet overseas customer demands[43][44] Main Operating Performance During the Reporting Period This section analyzes the company's operating performance, including financial statement changes, asset and liability status, and the performance of key subsidiaries and associates, noting stable revenue but declining profits and increased financial expenses Analysis of Main Business Main business analysis shows a slight 1.39% increase in operating revenue, but total profit and net profit attributable to shareholders significantly decreased by 773.56% and 1,363.32% respectively, while net cash flow from operating activities surged by 965.49% Analysis of Changes in Financial Statement Items (H1 2025 vs H1 2024) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 306,075,903.06 | 301,870,459.32 | 1.39 | No significant change | | Operating Cost | 274,634,072.30 | 257,532,656.03 | 6.64 | No significant change | | Selling Expenses | 2,113,932.66 | 2,405,452.63 | -12.12 | No significant change | | Administrative Expenses | 22,250,086.65 | 21,878,586.00 | 1.7 | No significant change | | Financial Expenses | 11,233,219.18 | 3,837,254.65 | 192.74 | Mainly due to changes in short-term borrowing interest and exchange rate fluctuations | | R&D Expenses | 13,290,824.23 | 14,718,901.05 | -9.7 | No significant change | | Net Cash Flow from Operating Activities | 35,195,110.17 | 3,303,181.38 | 965.49 | Mainly due to increased receipts from other operating activities | | Net Cash Flow from Investing Activities | -6,678,847.92 | -8,898,516.59 | 24.94 | Mainly due to decreased payments for fixed asset purchases | | Net Cash Flow from Financing Activities | -59,838,401.10 | 57,704,626.41 | -203.7 | Mainly due to changes in short-term borrowings | | Other Income | 2,899,650.66 | 1,105,965.75 | 162.18 | Mainly due to increased government grants in current period | | Credit Impairment Loss (Losses shown with '-') | 119,896.72 | -738,500.30 | 116.24 | Mainly due to changes in bad debt provisions | | Asset Impairment Loss (Losses shown with '-') | -317,855.84 | 2,000,307.00 | -115.89 | Mainly due to changes in inventory impairment | | Non-Operating Expenses | 2,920.13 | 3,014,929.15 | -99.9 | Mainly due to penalty expenses in prior period, none in current period | Analysis of Assets and Liabilities As of the reporting period end, total assets and net assets attributable to shareholders decreased, with a significant drop in monetary funds, an increase in receivables and contract liabilities, and a reclassification-driven reduction in long-term borrowings Assets and Liabilities Status (H1 2025 vs FY 2024) | Item Name | Current Period End Amount (RMB) | Proportion of Total Assets at Period End (%) | Prior Year End Amount (RMB) | Proportion of Total Assets at Prior Year End (%) | Change from Prior Year End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 14,125,158.34 | 1.43 | 50,004,144.17 | 4.73 | -71.75 | Mainly due to decrease in bank deposits | | Receivables | 128,534,130.68 | 13.03 | 104,896,317.55 | 9.93 | 22.53 | Mainly due to increase in accounts receivable | | Inventories | 171,122,498.92 | 17.34 | 188,896,130.48 | 17.88 | -9.41 | | | Long-Term Equity Investments | 68,058,061.36 | 6.90 | 63,109,513.51 | 5.97 | 7.84 | | | Fixed Assets | 464,904,501.36 | 47.12 | 488,670,659.61 | 46.25 | -4.86 | | | Short-Term Borrowings | 419,825,899.76 | 42.55 | 451,929,333.99 | 42.77 | -7.10 | | | Contract Liabilities | 10,334,444.73 | 1.05 | 5,312,525.24 | 0.50 | 94.53 | Mainly due to increase in advance receipts | | Long-Term Borrowings | 11,235,858.07 | 1.14 | 21,134,905.34 | 2.00 | -46.84 | Mainly due to reclassification to current portion of non-current liabilities | | Receivables Financing | 6,148,864.98 | 0.62 | 20,084,314.09 | 1.90 | -69.38 | Mainly due to decrease in notes receivable | - As of the end of the reporting period, details of the company's restricted assets are provided in Note VII, 31 Restricted Assets[49] Analysis of Major Holding and Associate Companies The company's major subsidiaries, including Anhui Profit Medical Supplies and Anhui Nanwei Medical Supplies, reported significant net losses, while associate company Jiangsu Pharmaceutical Co., Ltd. performed well with 4.811 billion RMB in revenue and 52.35 million RMB in net profit Major Subsidiaries and Associate Companies with Over 10% Impact on Company's Net Profit (Unit: 10,000 RMB) | Company Name | Company Type | Main Business | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Changzhou Nanfang Healthcare Medical Devices Co., Ltd. | Subsidiary | Sales of Class I and Class II medical devices, etc. | 200.00 | 1,685.54 | 2,189.85 | 203.30 | 5.65 | 12.86 | | Anhui Profit Medical Supplies Co., Ltd. | Subsidiary | Manufacturing and sales of Class I, Class II, Class III medical devices, disinfection products, non-medical protective masks, etc. | 21,500.00 | 20,473.48 | 19,175.84 | 6,952.06 | -622.07 | -648.36 | | Anhui Nanwei Medical Supplies Co., Ltd. | Subsidiary | Manufacturing and sales of Class I, Class II medical devices, nitrile gloves, PVC gloves, medical masks, non-medical masks, labor protection products, isolation gowns, protective clothing, etc. | 8,000.00 | 36,604.08 | -22,947.95 | 8,075.96 | -1,638.47 | -1,611.54 | | Anhui Huize New Material Technology Co., Ltd. | Subsidiary | R&D, production, and sales of high-performance film materials, high-performance continuous fiber reinforced thermoplastic composites, polymer anti-aging functional plastic pellets, masterbatches, halogen-free flame retardant materials, engineering plastics, etc. | 5,000.00 | 1,868.93 | 1,552.89 | 514.28 | -25.84 | -0.10 | | Nanfang Meibang (Changzhou) Nursing Products Co., Ltd. | Subsidiary | R&D and manufacturing of sports products (self-adhesive bandages, sports tape, kinesiology tape, sports sleeves), Class I medical devices (elastic bandages), cosmetics (nail strengthener liquid, nail strengthener pen, foot refreshing pen, foot refreshing spray), etc. | 500,000 USD | 349.88 | 349.88 | / | -10.60 | -8.50 | | Progressare Branding B.V. | Associate Company | Sports products, personal care product brand operations | 500,000 USD | 437,700 USD | 435,600 USD | / | -4,300 USD | -4,300 USD | | Jiangsu Pharmaceutical Co., Ltd. | Associate Company | Licensed projects: pharmaceutical wholesale; Class III medical device operation; sales of Class II and III radiation devices; decoction services for traditional Chinese medicine pieces; medical services; road freight transport (excluding dangerous goods); urban distribution transport services (excluding dangerous goods); pharmaceutical import and export; pharmaceutical retail; sales of pharmaceutical-grade precursor chemicals; internet information services for pharmaceuticals; internet information services for medical devices; internet sales of food (projects subject to approval by relevant departments, specific business scope subject to approval results). General projects: sales of Class II medical devices; sales of Class I medical devices; purchase and sale of local Chinese herbal medicines (excluding traditional Chinese medicine pieces); wholesale of edible agricultural products; retail of edible agricultural products; clinic services; elderly care services; institutional elderly care services; nursing institution services (excluding medical services); traditional Chinese medicine clinic services (subject to filing with traditional Chinese medicine authorities before operation); remote health management services; information technology consulting services; conference and exhibition services; supply chain management services; hospital management; information consulting services (excluding licensed information consulting services); health consulting services (excluding diagnostic and treatment services); technology services, technology development, technology consulting, technology exchange, technology transfer, technology promotion; software development; IoT technology services; domestic freight forwarding; international freight forwarding; low-temperature warehousing (excluding dangerous chemicals and other projects requiring licensing); general cargo warehousing services (excluding dangerous chemicals and other projects requiring licensing); warehousing equipment leasing services; goods import and export; internet sales (excluding licensed goods); sales of wearable smart devices; sales of smart home consumer devices; sales of mobile terminal devices; sales of special medical purpose formula foods; sales of health foods (pre-packaged); sales of infant formula milk powder and other infant formula foods; sales of glass instruments; sales of special labor protection products; sales of eyeglasses (excluding contact lenses); technology import and export; import and export agency; sales of chemical products (excluding licensed chemical products); sales of specialized chemical products (excluding dangerous chemicals); sales of daily chemical products; sales of sanitary products and disposable medical supplies; wholesale of cosmetics; retail of cosmetics; sales of disinfectants (excluding dangerous chemicals); sales of optical glass; sales of instruments and meters; sales of daily necessities; sales of household appliances; sales of electronic products; sales of IoT devices; non-residential real estate leasing; property management; retail of sporting goods and equipment; advertising design, agency; advertising production; advertising publishing; market research (excluding foreign-related surveys) (except for projects subject to approval by law, operate independently with business license). Limited to branch operations: catering services | 26,613.44 | 566,155.39 | 68,745.95 | 481,110.78 | 7,063.77 | 5,235.33 | | Changzhou Daoli Investment Management Co., Ltd. | Subsidiary | General projects: equity investment; venture capital (limited to investing in unlisted enterprises); investment activities with own funds; enterprise management; enterprise management consulting (except for projects subject to approval by law, operate independently with business license) | 310.00 | 276.97 | 276.82 | / | -13.60 | -10.24 | Other Disclosures The company faces various risks, including changes in pharmaceutical industry policies, intensified competition in the mid-to-low-end medical device market, shifts in the overseas market environment, exchange rate fluctuations, product liability, and potential sales decline due to dealer management issues - The pharmaceutical manufacturing industry is highly regulated by the state, and changes in industry policies may alter the competitive landscape, adversely affecting the company's production and operations[55] - The domestic mid-to-low-end medical device market is highly competitive, with international leading manufacturers dominating the mid-to-high-end market, and intensified market competition may adversely affect the company's operations[56] - Cross-border sales are influenced by factors such as national political environment, economic development level, regional conflicts, and trade policies towards China, which may adversely affect the company's operating performance[57] - The company's self-operated export revenue is primarily settled in USD and EUR, and exchange gains or losses from currency fluctuations will impact the company's performance[58] - The safety and effectiveness of the company's products are related to patient health, exposing the company to risks such as product liability, lawsuits, and arbitration[59] - Some of the company's products are sold through a distribution model, and poor dealer management, illegal activities, or termination of cooperation may lead to a decline in product sales[60] Section IV Corporate Governance, Environment, and Society This section outlines the company's corporate governance during the reporting period, including board meetings and information disclosure, confirms no profit distribution plan, and notes the inclusion of the company and its subsidiaries in the list of enterprises required to disclose environmental information - During the reporting period, the company's board of directors lawfully and effectively convened and held 1 general meeting of shareholders and 1 board meeting[35] - The company diligently fulfilled its information disclosure obligations and improved its internal control management system[35] - The proposed semi-annual profit distribution plan and capital reserve capitalization plan are 'No'[63] - The company and its subsidiaries, Jiangsu Nanwei Healthcare Co., Ltd. and Anhui Nanwei Medical Supplies Co., Ltd., have been included in the list of enterprises required to disclose environmental information by law[64] Section V Significant Matters This section details the company's fulfillment of commitments, progress on a major lawsuit, the investigation and proposed administrative penalties against the controlling shareholder and CFO for alleged insider trading, and significant guarantees provided to subsidiaries - The company's controlling shareholder and actual controller, directors, and senior management have all strictly fulfilled commitments regarding share lock-up, stock price stability, immediate return compensation, information disclosure truthfulness, and avoidance of horizontal competition[67][68][69][70] - In the sales contract dispute between the company and Changzhou Yier Man Bedding Co., Ltd., the second-instance judgment ordered Yier Man to refund 9.62 million RMB in goods payment and pay 111,000 RMB in liquidated damages; the company has applied for compulsory enforcement and has received a total of 4.8084 million RMB to date[73] - The company's controlling shareholder and actual controller Li Ping, and CFO Xiang Qinhua, were investigated by the China Securities Regulatory Commission for alleged insider trading and have received a 'Notice of Administrative Penalty Pre-Hearing'[72] Total Company Guarantees (Including Guarantees to Subsidiaries) | Indicator | Amount (10,000 RMB) | | :--- | :--- | | Total Guarantees Provided to Subsidiaries During Reporting Period | 8,700 | | Total Guarantees to Subsidiaries at Period End (B) | 8,700 | | Total Guarantees (A+B) | 8,700 | | Proportion of Total Guarantees to Company's Net Assets (%) | 32.67 | | Amount of Debt Guarantees Provided Directly or Indirectly to Guaranteed Parties with Debt-to-Asset Ratio Exceeding 70% (D) | 8,700 | Section VI Share Changes and Shareholder Information This section reports no changes in the company's total shares or capital structure during the period, details the shareholder count, and lists the top ten shareholders, including the controlling shareholder Li Ping, whose significant stake is largely pledged - During the reporting period, there were no changes in the company's total share capital or equity structure[79] - As of the end of the reporting period, the total number of common shareholders was 14,462[80] Top Ten Shareholders' Holdings (Excluding Shares Lent via Securities Relending) | Shareholder Name | Shares Held at Period End | Proportion (%) | Pledged, Marked, or Frozen Status (Number of Shares) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | | Li Ping | 118,841,048 | 41.12 | Pledged 82,400,000 | Domestic Natural Person | | Xu Dong | 12,941,000 | 4.48 | Pledged 12,700,000 | Domestic Natural Person | | Li Yongping | 9,639,338 | 3.33 | Pledged 9,639,338 | Domestic Natural Person | | Li Yongzhong | 8,080,029 | 2.80 | None | Domestic Natural Person | | Suzhou Lanying Venture Capital Partnership (Limited Partnership) | 7,330,505 | 2.54 | None | Domestic Non-State-Owned Legal Person | | Niu Huaxiang | 3,823,800 | 1.32 | None | Domestic Natural Person | | Zhou Zhongkun | 3,171,400 | 1.10 | None | Domestic Natural Person | | Wang Xuan | 2,454,200 | 0.85 | None | Domestic Natural Person | | Li Fei | 2,001,000 | 0.69 | None | Domestic Natural Person | | Li Zhaoqiang | 1,939,420 | 0.67 | None | Domestic Natural Person | - Mr. Li Ping, Mr. Li Yongping, and Mr. Li Yongzhong are brothers[83] Section VII Bond-Related Information This section states that the company had no corporate bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds during the reporting period - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[85] - The company has no convertible corporate bonds[85] Section VIII Financial Report This section presents the company's unaudited consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies, taxes, and financial items Audit Report This semi-annual report is unaudited - This semi-annual report is unaudited[4] Financial Statements This section presents the company's consolidated and parent company balance sheets as of June 30, 2025, and income statements, cash flow statements, and statements of changes in owners' equity for January-June 2025 - The consolidated balance sheet shows total assets of 986,986,162.81 RMB, total liabilities of 715,584,727.31 RMB, and total owners' equity of 271,401,435.50 RMB as of June 30, 2025[87][89] - The consolidated income statement shows total operating revenue of 306,075,903.06 RMB, total profit of -13,452,057.12 RMB, net profit of -13,009,722.44 RMB, and net profit attributable to parent company shareholders of -12,967,713.84 RMB for January-June 2025[94][95][96] - The consolidated cash flow statement shows net cash flow from operating activities of 35,195,110.17 RMB, net cash flow from investing activities of -6,678,847.92 RMB, and net cash flow from financing activities of -59,838,401.10 RMB for January-June 2025[99][100] Company Overview Jiangsu Nanwei Healthcare Co., Ltd., established on October 31, 2012, with a registered capital of 289.042 million RMB, specializes in R&D, production, and sales of transdermal products, medical tapes, sports protection, first aid kits, nitrile gloves, and protective equipment - Jiangsu Nanwei Healthcare Co., Ltd. was established through overall restructuring on October 31, 2012, with a registered capital and share capital of 289.042 million RMB[120] - The company and its subsidiaries primarily engage in the R&D, production, and sales of transdermal products, medical adhesive tapes and bandages, sports protection products, first aid kits, nitrile gloves, and protective equipment[120] - These financial statements and notes were approved for issuance by the company's board of directors on August 29, 2025[120] Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, adhering to the Accounting Standards for Business Enterprises, with the board confident in sufficient operating funds for at least 12 months from the approval date - The company's financial statements are prepared on a going concern basis, recognizing and measuring transactions and events in accordance with the 'Accounting Standards for Business Enterprises - Basic Standards' and specific accounting standards, application guidelines, interpretations, and other relevant regulations issued by the Ministry of Finance[121] - The company's board of directors believes that the company has sufficient working capital and will be able to continue as a going concern for a foreseeable period of not less than 12 months from the date of approval of these financial statements[122] Significant Accounting Policies and Estimates This section details the company's key accounting policies and estimates, including business combinations, consolidated financial statements, financial instrument classification, impairment provisions for receivables and inventories, fixed asset depreciation, intangible asset amortization, revenue recognition, government grants, and deferred tax assets/liabilities - The company's accounting year runs from January 1 to December 31, with 12 months constituting an operating cycle[125][126] - Financial assets are classified into: financial assets measured at amortized cost; financial assets measured at fair value through other comprehensive income; and financial assets measured at fair value through profit or loss[140] Comparison Table of Receivables Aging and Expected Credit Loss Rates for Entire Lifetime | Aging | Provision Rate | | :--- | :--- | | Within 1 year | 5% | | 1 to 2 years | 10% | | 2 to 3 years | 30% | | 3 to 4 years | 50% | | 4 to 5 years | 80% | | Over 5 years | 100% | - Raw materials and finished goods are accounted for using the weighted average method at the end of the month when issued; at period-end, inventory impairment provisions are made for the difference between inventory cost and net realizable value[162][163] Fixed Asset Depreciation Methods | Category | Depreciation Method | Depreciation Period (Years) | Salvage Rate | Annual Depreciation Rate | | :--- | :--- | :--- | :--- | :--- | | Buildings and Structures | Straight-line method | 20 | 5.00% | 4.75% | | Machinery and Equipment | Straight-line method | 10 | 5.00% | 9.50% | | Transportation Equipment | Straight-line method | 4 | 5.00% | 23.75% | | Electronic Equipment | Straight-line method | 3 | 5.00% | 31.67% | | Other Equipment | Straight-line method | 5 | 5.00% | 19.00% | - Revenue from goods sales is generally recognized by the company when control of the goods is transferred, based on a comprehensive consideration of various factors[203] Taxation This section lists the company's main tax types and rates, including VAT (13%, 5%), Urban Maintenance and Construction Tax (7%, 5%), Education Surcharge (5%), and Corporate Income Tax (5%, 15%, 25%), noting the parent company's 15% preferential rate as a high-tech enterprise Main Tax Types and Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Taxable Value-Added Amount | 13%，5% | | Urban Maintenance and Construction Tax | Amount of VAT Paid | 7%，5% | | Education Surcharge | Amount of VAT Paid | 5% | | Corporate Income Tax | Taxable Income | 5%，15%，25% | - The company (parent company) was recognized as a high-tech enterprise on December 12, 2022, and its corporate income tax is levied at a reduced rate of 15%[217] - The policy of calculating taxable income at 25% and paying corporate income tax at a 20% rate for small low-profit enterprises will continue until December 31, 2027[217] Notes to Consolidated Financial Statement Items This section provides detailed notes on consolidated financial statement items, including significant decreases in monetary funds, increases in receivables, provisions for inventory and fixed asset impairment, and a substantial rise in financial expenses due to interest and exchange rate fluctuations - Of the monetary funds balance at period-end, apart from guarantee deposits of 1,372,414.23 RMB and litigation-frozen funds of 5,900,000.00 RMB, there are no other amounts restricted from realization or with potential recovery risks due to pledges, freezes, etc[218] - Accounts receivable book balance at period-end is 179,391,794.01 RMB, with bad debt provision of 50,857,663.33 RMB[224] - Inventory book value at period-end is 171,122,498.92 RMB, with inventory impairment provision of 20,155,531.26 RMB[251] - Fixed assets book value at period-end is 464,904,501.36 RMB, of which the total book value of fixed assets for which property certificates have not been obtained is 61,856,238.68 RMB[262][264] - Short-term borrowings balance at period-end is 419,825,899.76 RMB, primarily guarantee and mortgage loans[284] - Financial expenses incurred in the current period amounted to 11,233,219.18 RMB, mainly due to increased interest expenses and exchange gains/losses[322] - The company faces liquidity risk at period-end and plans to take measures including maintaining close cooperation with banks, accelerating asset turnover, improving inventory and accounts receivable turnover rates, maintaining normal credit terms from current material suppliers, and considering opportunistic disposal of investments to cover liquidity gaps[367] Research and Development Expenses This section discloses the company's R&D expenditures for H1 2025, totaling 13.29 million RMB, which decreased from the prior year, with all expenses recognized as period costs and no capitalized R&D projects R&D Expenses by Nature of Expense | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Expensed R&D Expenditure | 13,290,824.23 | 14,718,901.05 | | Capitalized R&D Expenditure | | | | Total | 13,290,824.23 | 14,718,901.05 | - There were no capitalized R&D expenditures in the current period[346] Changes in Consolidation Scope This section states that there were no changes in the company's consolidation scope during the reporting period, including no non-same-control business combinations, same-control business combinations, reverse acquisitions, or disposals of subsidiaries leading to loss of control - There were no transactions or events resulting in the loss of control over subsidiaries in the current period[347] - There were no business combinations not under common control, business combinations under common control, reverse acquisitions, or similar situations[347] Interests in Other Entities This section details the company's interests in subsidiaries like Nanfang Meibang, Anhui Profit, and Anhui Nanwei, and significant associates such as Progressare Branding B.V. and Jiangsu Pharmaceutical Co., Ltd., with the latter contributing substantial net profit - The company owns subsidiaries including Nanfang Meibang (Changzhou) Nursing Products Co., Ltd., Anhui Profit Medical Supplies Co., Ltd., Changzhou Nanfang Healthcare Medical Devices Co., Ltd., Anhui Huize New Material Technology Co., Ltd., Anhui Nanwei Medical Supplies Co., Ltd., and Changzhou Daoli Investment Management Co., Ltd.[349] Minority Interests in Significant Non-Wholly Owned Subsidiaries | Subsidiary Name | Minority Shareholding Ratio (%) | Profit/Loss Attributable to Minority Shareholders for Current Period (RMB) | Minority Interests Balance at Period End (RMB) | | :--- | :--- | :--- | :--- | | Nanfang Meibang (Changzhou) Nursing Products Co., Ltd. | 49.00% | -41,630.83 | 1,714,398.49 | | Anhui Huize New Material Technology Co., Ltd. | 35.00% | -377.77 | 3,368,106.72 | - The company's significant associate companies include PROGRESSARE BRANDING B.V. and Jiangsu Pharmaceutical Co., Ltd.[357] Key Financial Information of Significant Associate Companies (H1 2025) | Item | PROGRESSARE BRANDING B.V. (RMB) | Jiangsu Pharmaceutical Co., Ltd. (RMB) | | :--- | :--- | :--- | | Total Assets | 3,133,390.81 | 534,904,662.95 | | Total Liabilities | 31,225.81 | 4,650,018,998.89 | | Equity Attributable to Parent Company Shareholders | 3,102,165.00 | 651,762,790.92 | | Net Profit | -7,301.00 | 4,955,848.85 | Government Grants This section discloses total government grants of 2.88 million RMB recognized during the reporting period, comprising 319,382.47 RMB related to assets for infrastructure and fixed asset investments, and 2.56 million RMB related to income, including foreign trade export relief and advanced manufacturing VAT deductions Government Grants Recognized in Current Profit/Loss | Type | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Asset-Related | 319,382.47 | 239,382.48 | | Income-Related | 2,561,299.55 | 849,364.07 | | Total | 2,880,682.02 | 1,088,746.55 | - Key grant projects include infrastructure construction subsidies for Anhui Langxi production base, foreign trade export relief subsidies, fixed asset investment subsidies, and VAT super deduction for advanced manufacturing[323] Risks Related to Financial Instruments The company faces market risks (exchange rate and interest rate), credit risk, and liquidity risk, with exchange rate risk deemed non-material, interest rate sensitivity analyzed, credit risk managed through controls, and liquidity risk addressed by strategic financial measures - The company's foreign exchange risk is primarily related to its monetary assets and liabilities denominated in USD and EUR, but management considers the foreign exchange risk faced to be non-material[363] - In the event of a 50 basis point increase/decrease in interest rates, the company's net profit attributable to parent company owners for H1 2025 would decrease/increase by 1.0475 million RMB[364] - To mitigate credit risk, the company controls credit limits, conducts credit approvals, and implements other monitoring procedures to ensure necessary measures are taken to recover overdue receivables[365] - The company faces liquidity risk at period-end and plans to take measures including maintaining close cooperation with banks, accelerating asset turnover, improving inventory and accounts receivable turnover rates, maintaining normal credit terms from current material suppliers, and considering opportunistic disposal of investments to cover liquidity gaps[367] Maturity Analysis of Company's Financial Liabilities (June 30, 2025) | Item | Total (RMB) | Within 1 year (RMB) | 1-2 years (RMB) | 2-3 years (RMB) | Over 3 years (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Short-Term Borrowings | 419,825,899.76 | 419,825,899.76 | - | - | - | | Accounts Payable | 215,282,092.82 | 215,282,092.82 | - | - | - | | Other Payables | 4,101,476.12 | 4,101,476.12 | - | - | - | | Other Current Liabilities | 7,286,408.31 | 7,286,408.31 | - | - | - | | Long-Term Borrowings | 33,426,111.69 | 22,190,253.62 | 11,235,858.07 | - | - | | Total | 679,921,988.70 | 668,686,130.63 | 11,235,858.07 | - | - | Fair Value Disclosures This section discloses the fair value of assets and liabilities measured at fair value at period-end, including trading financial assets (equity instrument investments) measured at Level 3 fair value and receivables financing (bank acceptance bills) measured at Level 1 Fair Value Measurement Items at Period End | Item | Level 1 Fair Value Measurement (RMB) | Level 2 Fair Value Measurement (RMB) | Level 3 Fair Value Measurement (RMB) | Total (RMB) | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets (Equity Instrument Investments) | | | 22,522,811.33 | 22,522,811.33 | | Receivables Financing | 6,148,864.98 | | | 6,148,864.98 | | Total Assets Continuously Measured at Fair Value | 6,148,864.98 | - | 22,522,811.33 | 28,671,676.31 | - The company's Level 2 fair value measurement item is receivables financing, which consists of bank acceptance bills whose face value is close to their fair value[378] - The company's Level 3 fair value measurement item is financial assets measured at fair value through profit or loss, which are equity instrument investments whose fair value is determined using valuation techniques[379] Related Parties and Related Party Transactions This section identifies key related parties, including the actual controller Li Ping and his spouse, and details significant related party transactions such as 388 million RMB in guarantees provided by Li Ping and Chen Meifang, and intercompany borrowings and receivables/payables - Other related parties include Chen Meifang (spouse of the actual controller), Shu Zhengjun (minority shareholder of a significant subsidiary), and Xu Dong (former shareholder holding over 5%)[382] The Company as a Guaranteed Party (Related Party Guarantees) | Guarantor | Guaranteed Amount (RMB) | Guarantee Start Date | Guarantee End Date | Is Guarantee Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Li Ping | 10,000,000.00 | 2025/5/28 | 2026/5/25 | No | | Li Ping, Chen Meifang | 14,000,000.00 | 2025/1/26 | 2025/7/10 | No | | Li Ping | 87,000,000.00 | 2025/5/22 | 2028/5/20 | No | | Total | 388,766,814.35 | | | | - Related party fund borrowing: borrowed 20.2 million RMB from Li Ping[386] Receivables from Related Parties | Item Name | Related Party | Book Balance at Period End (RMB) | Bad Debt Provision (RMB) | | :--- | :--- | :--- | :--- | | Other Receivables | Shu Zhengjun | 3,384,278.00 | 1,692,139.00 | | Other Receivables | Xu Dong | 684,771.06 | 67,474.26 | Payables to Related Parties | Item Name | Related Party | Book Balance at Period End (RMB) | | :--- | :--- | :--- | | Other Payables | Li Ping | 3,000,000.00 | Share-Based Payments This section states that the company had no share-based payment plans, equity instruments, or related expenses during the reporting period, nor any modifications or terminations of such plans - The company has no share-based payment arrangements[392] Commitments and Contingencies This section states that as of the balance sheet date, the company had no significant commitments or contingencies requiring disclosure - The company has no significant commitments[393] - The company has no significant contingencies requiring disclosure[393] Events After the Balance Sheet Date This section states that no significant non-adjusting events, profit distributions, sales returns, or other material matters requiring disclosure occurred between the balance sheet date and the report disclosure date - The company has no significant non-adjusting events[393] - The company has no profit distribution events[393] - The company has no sales returns[393] Other Significant Matters This section confirms no prior period accounting error corrections, major debt restructurings, asset exchanges, annuity plans, or discontinued operations occurred, and no reportable segments or other material transactions affecting investor decisions - The company has no prior period accounting error corrections[393] - The company has no significant debt restructurings[393] - The company has no asset exchanges[394] - The company has no discontinued operations[394] - The company has no reportable segments[394] Notes to Parent Company Financial Statement Items This section provides detailed notes for the parent company's financial statement items, including accounts receivable of 171 million RMB with 39.62 million RMB in bad debt provisions, other receivables of 475 million RMB (mostly loans and interest), long-term equity investments of 382 million RMB, and operating revenue of 221 million RMB with 4.95 million RMB in investment income - Parent company accounts receivable book balance at period-end is 170,892,704.16 RMB, with bad debt provision of 39,619,271.89 RMB[397] - Parent company other receivables book balance at period-end is 474,927,199.09 RMB, of which loans and interest amount to 463,952,633.24 RMB[409] - Parent company long-term equity investments book value at period-end is 381,774,279.36 RMB, including investments in subsidiaries of 313,716,218.00 RMB and investments in associates and joint ventures of 68,058,061.36 RMB[414] - Parent company operating revenue for the current period is 220,923,034.59 RMB, with operating cost of 191,639,539.44 RMB[418] - Parent company investment income for the current period is 4,948,547.85 RMB, all from long-term equity investments accounted for using the equity method[419] Supplementary Information This section provides supplementary financial information, including a detailed statement of non-recurring gains and losses, primarily from government grants, and net asset return and earnings per share data, both of which are negative due to net losses Statement of Non-Recurring Gains and Losses for the Current Period | Item | Amount (RMB) | | :--- | :--- | | Government Grants Recognized in Current Profit/Loss | 2,899,650.66 | | Other Non-Operating Income and Expenses Apart from the Above | -2,916.68 | | Less: Income Tax Impact | -464,118.04 | | Total | 2,432,615.94 | Return on Net Assets and Earnings Per Share | Item | Weighted Average Return on Net Assets (%) | Basic Earnings Per Share | Diluted Earnings Per Share | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Ordinary Shareholders of the Company | -4.75 | -0.045 | -0.045 | | Net Profit Attributable to Ordinary Shareholders of the Company After Non-Recurring Gains and Losses | -5.65 | -0.05 | -0.05 | - Reconciliation of net profit to net cash flow from operating activities: net profit of -13,009,722.44 RMB, net cash flow from operating activities of 35,195,110.17 RMB[338]