Business Operations - The Group operates 120 retail pharmacies primarily located in Northeast China, with approximately 1,027 active distributors and 842 full-time staff[8]. - The Group has established 3 large-scale distribution logistics centers in Shijiazhuang, Harbin, and Jiamusi, enhancing its national distribution system[8]. - The main product categories include prescribed drugs, non-prescribed drugs, traditional Chinese medicine, and health care products, among others[9]. - The Group aims to expand its product mix by introducing more health care products based on its expertise in pharmaceutical retail and distribution[11]. - The Group is actively exploring online pharmacies, cross-border e-commerce, and influencer marketing as part of its "Internet+" strategy[12]. - The Group emphasizes the concept of "Specialization+" and "Platform+" to enhance its business model and cope with the "New Norm" in the real economy[12]. - The Group is focused on upgrading and digital transformation within the industry to maintain its competitive edge[12]. - The Group's strategy includes leveraging core advantages of branded products and expanding cooperation in this area[11]. - The Group is committed to developing the upstream ecological chain, including the construction of Chinese herbal medicine bases[11]. - The Group's vision is to become a leading international brand operator in the universal health industry[7]. Financial Performance - Revenue for the year ended June 30, 2025, was RMB 711.5 million, a decrease of 34.7% from RMB 1,089.0 million in 2024[20]. - Gross profit decreased by 37.0% to RMB 113.4 million from RMB 179.9 million[20]. - The company reported an operating loss of RMB 25.5 million, compared to a profit of RMB 0.1 million in the previous year[20]. - Basic loss per share was RMB (32.46) cents, down from RMB 0.62 cents in 2024, representing a decline of 33.08 cents[20]. - The current ratio improved to 1.3 times from 1.0 times, indicating better short-term financial health[20]. - Trade receivables turnover days increased to 33.4 days from 27.8 days, reflecting slower collection of receivables[20]. - The total number of stores as of June 30, 2025, was 120, with 83 stores closed during the year due to lower profitability[32]. - The company is focusing on optimizing its business model and improving operational efficiency in response to market changes[31]. - The Group's retail business revenue was RMB 197.9 million for the Year, representing a year-on-year decrease of 40.4%[60]. - The nationwide distribution business revenue was RMB 513.6 million, a year-on-year decrease of 32.1%[64]. - The Group operated a total of 223 branded products at the end of the Year, following a net reduction of 315 branded products[67]. - The Group had a total of 120 chain stores at the end of the Year, down from 203 in 2024[60]. - The distribution segment revenue decreased by 32.1% to RMB 513.6 million, while retail segment revenue fell by 40.4% to RMB 197.9 million[90]. Market Trends and Strategies - Future industry development is expected to focus on precision medicine, digital health, and the elderly care economy[29]. - The global GDP growth is predicted to slow down to about 2.3% in 2025, impacting operational strategies[29]. - The market size of China's healthcare industry is expected to reach RMB 29.1 trillion by 2030[44]. - The Group aims to enhance its strength and improve the product line-up through the development of integrated outpatient services[37]. - The Chinese government has prioritized the development of the traditional Chinese medicine (TCM) industry, introducing supportive policies to promote high-quality development[45]. - The application of artificial intelligence in disease diagnosis and health management has improved efficiency and accuracy in the healthcare sector[48]. - The PRC has accelerated the construction of the elderly care service system, enhancing service quality and management levels in 2024[50]. - Investment in preventive medicine has increased, focusing on vaccine research and health education to reduce disease occurrence[51]. - The demand for healthcare and elderly care services is continuously growing due to an aging population and increased health awareness[48]. Corporate Responsibility and Sustainability - The Group is committed to corporate responsibility, focusing on environmental, social, and governance aspects to enhance long-term competitiveness[38]. - The company is committed to enhancing sustainability practices and addressing climate impact through ambitious environmental goals[151]. - The company aims to create value for stakeholders through responsible operations, focusing on environmental, operational, and community factors[152]. - The company engages with various stakeholders, including government regulators and investors, to ensure compliance and transparency[156]. - The company actively participates in community welfare projects and addresses social responsibilities[156]. - The Group's emission indicators for the year ended June 30, 2024, include 301.6 kg of nitrogen oxides (NOx) and 90,188.9 kg of carbon dioxide (CO2) with respective emission/revenue ratios of 0.424 and 126.8[163]. - The Group's resource usage for the year ended June 30, 2024, includes 342,208 degrees of electricity, 38,216 liters of petrol, and 1,745 m³ of water, with usage/revenue ratios of 481.0, 53.7, and 2.5 respectively[177]. - The Group actively promotes energy-saving and emission reduction measures among its manufacturers, ensuring compliance with national environmental protection regulations[165]. - The Group has reduced business trips to lower energy consumption and greenhouse gas emissions, utilizing teleconferencing as an alternative[164]. - The Group's commitment to environmental protection includes a "green office" initiative aimed at saving electricity and water through employee awareness and behavior changes[170]. - The Group's policies for energy and water conservation provide specific guidance to employees on reducing environmental impact[179]. - The Group's transportation strategy prioritizes local suppliers to minimize energy consumption during the transportation process[158]. - The Group's environmental initiatives include promoting electronic documentation to reduce paper usage and implementing a paperless office policy[171]. Employee Management and Training - As of June 30, 2025, the Group had 842 employees, with 99.0% located in mainland China[185]. - The employee turnover rate for general staff aged 50 and above was 38.5%, while for those aged 40-49 it was 40.2%[196]. - The Group's management has implemented strict compliance with local employment laws, ensuring fair treatment regardless of nationality, race, gender, or age[186]. - The Group provides environmental protection training for new employees and actively promotes green purchasing practices[181]. - The Group's compensation structure links a portion of employee pay to individual and overall performance, incentivizing high performance[189]. - The Group has a zero-tolerance policy for child labor and forced labor, conducting strict recruitment examinations to prevent such practices[188]. - The Group has established management policies and procedures for human resources to ensure an ideal and safe working environment for employees[198]. - The Group implements national regulations on occupational safety and provides necessary labor protection resources, including white gowns for sales personnel[199]. - Regular monitoring of compliance status is conducted, including checks on fire-fighting equipment and air quality maintenance[199]. - The Group provides social insurance for employees, including employment injury insurance, and liability insurance for directors and senior management[199]. Strategic Initiatives and Future Plans - The Group plans to divest non-primary businesses and optimize store layout to adapt to the competitive pharmaceutical market[37]. - The "Specialization+" strategy will be implemented to improve service professionalism and operational quality, leveraging licensed pharmacists and business institute advantages[134][136]. - The "Platform+" strategy aims to expand value-added services in stores to meet increasing consumer health demands, adapting to new market conditions[137]. - The "Internet+" strategy will strengthen the integration of online and offline services, utilizing mobile internet technologies and e-commerce partnerships[139][140]. - A subscription agreement was entered into on May 13, 2025, for 30,440,263 new shares at HK$0.80 per share, raising approximately HK$24.35 million[141][142]. - The company plans to enhance the integration of online and offline operations through its "Internet+" strategy, leveraging mobile internet applications and new marketing ecosystems[143]. - A total of 30,440,263 new shares were issued at a subscription price of HK$0.80 per share, raising approximately HK$24.35 million[144]. - The authorized share capital will increase from US$10 million to US$50 million, allowing for greater flexibility in future fundraising efforts[146]. - The increase in authorized share capital was approved by shareholders on August 19, 2025, and became effective the same day[147].
大健康国际(02211) - 2025 - 年度财报