NO.1 PHARMACY(SH:600833)2023-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2023 was ¥898,243,966.18, a decrease of 5.21% compared to ¥947,611,499.02 in the same period last year[18]. - The net profit attributable to shareholders of the listed company increased by 38.19% to ¥45,829,594.76 from ¥33,163,260.93 year-on-year[18]. - The basic earnings per share rose to ¥0.2054, up 38.13% from ¥0.1487 in the same period last year[19]. - The company reported a decrease of 28.75% in the basic earnings per share after deducting non-recurring gains and losses, which was ¥0.1051 compared to ¥0.1475 in the previous year[20]. - Total operating revenue for the reporting period was CNY 898.24 million, a decrease of 5.21% compared to the previous year[44]. - The company reported a net profit for the first half of 2023 of RMB 49,594,246.70, representing a significant increase compared to the previous period[62]. - The comprehensive income for the first half of 2023 reached CNY 96,712,062.74, up from CNY 68,614,629.57 in the first half of 2022, indicating an increase of 41.0%[126]. - The company reported a financial expense of CNY -5,648,143.51 for the first half of 2023, an improvement compared to CNY -1,784,433.64 in the same period of 2022[125]. Cash Flow and Assets - The net cash flow from operating activities improved significantly, reaching ¥222,434,209.66, compared to a negative cash flow of ¥293,538,317.33 in the previous year, marking a 175.78% increase[18]. - Cash and cash equivalents decreased by 56.11% to 221,615,878.06 RMB, accounting for 11.91% of total assets[50]. - The net cash flow from operating activities for the first half of 2023 was ¥198,384,200.08, a significant improvement compared to a net outflow of ¥311,724,884.38 in the same period of 2022[134]. - The total cash and cash equivalents at the end of the period were ¥185,867,869.00, down from ¥388,649,221.95 at the end of the first half of 2022[134]. - Total assets at the end of the reporting period amounted to 1,858,000,000.00 RMB, with a year-on-year increase of 30.59% in deferred income tax assets[51]. - The company's total assets decreased from CNY 2,039,102,174.03 to CNY 1,860,121,292.89, a decline of about 8.8%[120]. Market and Industry Trends - The retail pharmacy market in China reached a sales volume of 138 billion RMB in Q1 2023, representing a year-on-year growth of 11.6% compared to Q1 2022[25]. - The overall retail pharmacy market is expected to continue growing, driven by increasing demand for healthcare services and supportive government policies aimed at improving healthcare accessibility[30]. - The O2O delivery market for pharmacies experienced a growth rate of 59% in Q1 2023, indicating a rapid expansion of online pharmacy services[29]. - The chain pharmacy's franchise model accounted for 55% of new store openings among the top 100 retail pharmacy companies in 2022, up 12 percentage points from 2021[26]. Risks and Challenges - The company has identified potential market and operational risks in its management discussion and analysis section[7]. - The company faces risks from intensified market competition, particularly from online medical services and changing consumer behaviors, which may impact physical store traffic[70]. - Financial risks are anticipated due to increased investments in marketing networks and business innovation, potentially leading to short-term losses[71]. - Inventory risks have emerged due to significant changes in sales patterns, prompting the company to enhance supply chain flexibility and responsiveness[72]. Corporate Governance and Compliance - The company has not faced any environmental penalties and complies with national environmental protection laws[82]. - The integrity status of the company and its controlling shareholders remains good, with no major breaches of trust or significant debts unpaid[88]. - The company has established a financial accounting system that allows for independent financial decision-making and management[86]. - The company will ensure that its senior management does not hold positions or receive compensation from Baillian Group or its controlled entities, maintaining personnel independence[86]. Shareholder Information - The total number of common shareholders as of the end of the reporting period is 22,672[109]. - The largest shareholder, Bailian Group Co., Ltd., holds 100,274,734 shares, accounting for 44.95% of total shares[111]. - The company reported no changes in share capital structure during the reporting period[108]. Investment and Financing Activities - The company did not engage in any new equity investments during the reporting period, maintaining a stable investment strategy[56]. - The company has a financial service agreement with Bailian Group Financial Co., Ltd. for a financing limit not exceeding 400 million RMB[96]. - The company adjusted the financing limit and deposit balance limit with Bailian Group from 400 million RMB to 600 million RMB, and later to 800 million RMB, with the agreement extended to June 2025[97]. Accounting Policies - The financial statements are prepared based on the going concern assumption, ensuring the company's ability to continue operations[148]. - The accounting policies and estimates are in accordance with the relevant Chinese accounting standards, ensuring accurate financial reporting[149]. - The company recognizes its share of assets and liabilities in joint operations and confirms related expenses accordingly[158].