NO.1 PHARMACY(SH:600833)2021-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2021 was approximately RMB 631.86 million, a decrease of 26.36% compared to RMB 857.99 million in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2021 was approximately RMB 25.95 million, down 22.00% from RMB 33.27 million in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 52.17%, amounting to approximately RMB 15.84 million compared to RMB 33.12 million in the same period last year[18]. - The weighted average return on net assets was 3.53%, a decrease of 1.05 percentage points from 4.58% in the same period last year[18]. - The company achieved operating revenue of CNY 631.86 million, a year-on-year decrease of 26.36%, with main business revenue at CNY 603.05 million, down 27.66%[45]. - The net profit attributable to shareholders was CNY 259.51 million, reflecting a decline of 22.00% year-on-year[45]. - The retail pharmacy business generated revenue of CNY 397.75 million, showing a slight growth of 1.22% year-on-year[45]. - The wholesale pharmaceutical business reported revenue of CNY 205.31 million, a significant decline of 53.42% year-on-year[46]. - The company reported a significant reduction in sales expenses, which were ¥72,130,997.59 in the first half of 2021, compared to ¥73,281,087.96 in the same period last year[113]. - The comprehensive income for the current period shows a total loss of CNY 10,453,547.56, compared to a gain of CNY 10,739,655.41 in the same period last year, indicating a significant downturn[122]. Cash Flow and Assets - The net cash flow from operating activities increased by 651.91%, reaching approximately RMB 31.29 million, compared to a negative cash flow of RMB 5.67 million in the previous year[18]. - The company reported a cash inflow of ¥180,000,000.00 from financing activities in 2021, with total cash outflow from financing activities amounting to ¥197,039,896.09[117]. - The ending cash and cash equivalents balance decreased to ¥309,344,930.40 in 2021 from ¥641,611,145.08 in 2020, a decline of approximately 51.8%[117]. - The total assets at the end of the reporting period were approximately RMB 1.24 billion, a decrease of 10.87% from RMB 1.40 billion at the end of the previous year[18]. - The company's current assets totaled CNY 647,593,595.89, down from CNY 879,352,653.92 at the end of 2020, indicating a decrease of about 26.3%[107]. - The cash and cash equivalents decreased significantly from CNY 509,431,257.61 to CNY 309,644,930.40, representing a decline of approximately 39.2%[107]. - The total liabilities decreased from CNY 646,939,073.40 to CNY 507,494,338.97, a reduction of about 21.5%[108]. - The company's total equity as of June 30, 2021, was CNY 736,992,237.63, down from CNY 749,316,718.75, reflecting a decrease of approximately 1.6%[108]. Business Strategy and Market Position - The company reported a significant decline in sales of civilian epidemic prevention materials, which impacted operating profits[18]. - The company is actively enhancing its professional training to improve pharmaceutical service capabilities, focusing on medication guidance and health services[31]. - The company is expanding its retail and wholesale business in response to the growing health demand driven by increasing disposable income and aging population[29]. - The implementation of policies supporting the transition of drug sales from hospitals to retail pharmacies is expected to benefit the company in the long term[31]. - The company is focusing on chronic disease management by setting up specialized areas and employing trained staff to provide targeted services[31]. - The company is adapting to market changes by developing a modern e-commerce channel to enhance health consumption experiences[33]. - The company is positioned to benefit from the national strategy of prioritizing health development as outlined in the 14th Five-Year Plan[30]. - The company is leveraging new technologies such as AI and online services to enhance its operational model and customer experience[32]. Corporate Governance and Compliance - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[5]. - The company reported no environmental violations or penalties during the reporting period, emphasizing its commitment to environmental protection[77]. - The company is not classified as a key pollutant discharge unit and has maintained compliance with environmental regulations throughout its operations[77]. - The company did not propose any profit distribution or capital reserve transfer plans for the first half of 2021, indicating a focus on reinvestment[74]. - The integrity status of the company and its controlling shareholders remained good, with no major credit defaults reported[83]. - The company did not report any significant violations or penalties against its directors, supervisors, or senior management during the reporting period[83]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 23,966[98]. - The largest shareholder, Bailian Group Co., Ltd., holds 100,274,734 shares, accounting for 44.95% of the total shares[101]. - Jilin Aodong Pharmaceutical Group Co., Ltd. holds 10,821,394 shares, representing 4.85% of the total shares[101]. - The company has not reported any changes in its total share capital or structure during the reporting period[97]. Risks and Challenges - The company faces risks from industry policy changes, including the impact of "two-invoice system" and "volume-based procurement" policies, which may increase cost pressures on pharmaceutical retail operations[65]. - The company is also exposed to intensified market competition, particularly from online pharmacies and changes in consumer behavior, which could affect profitability[66]. - Financial risks are present due to increased investments in marketing networks and business innovation, which may lead to short-term cost increases outpacing revenue growth[67]. Accounting and Financial Reporting - The company's financial statements are prepared on a going concern basis, with no significant doubts regarding the continuity of operations within the next 12 months[136]. - The accounting policies and estimates have been tailored to the company's actual production and operational characteristics[137]. - The financial statements comply with the requirements of the enterprise accounting standards, accurately reflecting the company's financial position and operating results[138]. - The company recognizes the fair value of identifiable assets and liabilities in business combinations, with any excess of cost over fair value recognized as goodwill[142].