DSL(SH:603233)2021-08-29 16:00Financial Performance - The company's operating revenue for the first half of 2021 reached ¥8,054,554,899.95, representing a 16.05% increase compared to ¥6,940,333,735.98 in the same period last year [15]. - The net profit attributable to shareholders of the listed company was ¥645,648,566.73, an increase of 8.56% from ¥594,731,417.85 in the previous year [15]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥590,296,093.67, showing a slight increase of 1.65% compared to ¥580,699,194.20 last year [15]. - The net cash flow from operating activities was ¥737,489,493.51, which is a 17.85% increase from ¥625,780,115.83 in the same period last year [15]. - The total assets at the end of the reporting period were ¥15,581,447,356.28, reflecting a 26.35% increase from ¥12,331,926,019.36 at the end of the previous year [15]. - The net assets attributable to shareholders of the listed company were ¥5,317,994,360.78, a decrease of 1.24% from ¥5,384,805,692.48 at the end of the previous year [15]. - The company's basic earnings per share increased by 7.89% to CNY 0.82 compared to the same period last year [16]. - Net profit attributable to shareholders grew by 8.56%, while net profit excluding non-recurring gains and losses increased by 1.65% [16]. - Operating revenue rose by 16.05%, driven by same-store growth and contributions from new stores and industry acquisitions [16]. - The net cash flow from operating activities increased by 17.85%, attributed to higher operating profit and effective cost control [16]. Store Expansion and Operations - The company has opened a total of 6,978 stores, including 552 franchise stores, expanding its retail business across 10 provinces [21]. - The company is focusing on a three-pronged expansion strategy of direct operation, mergers, and franchising to enhance its market presence [21]. - The company has implemented a data-driven upgrade in store management to improve revenue from existing stores [21]. - The company reported a significant decline in store traffic and pharmaceutical sales due to the pandemic, leading to a reduced revenue growth rate in Guangdong province [22]. - The company has established a digital transformation strategy, optimizing store operations and management efficiency through data integration across the entire business chain [22]. - The company has built a logistics network with a total warehouse area of 170,000 square meters, ensuring traceable management of the entire process from procurement to delivery [23]. - The company has expanded its DTP pharmacy network, with 106 DTP stores by the end of the reporting period, enhancing its capability to serve patients with specialized medication needs [23]. - Membership consumption accounted for 77.25% of total sales, indicating a strong customer loyalty and engagement strategy [25]. - The company has implemented a standardized professional pharmacy model to enhance pharmaceutical service levels, focusing on patient-centered care [23]. Financial Investments and Acquisitions - The company completed 17 investment and acquisition transactions in the industry during the reporting period, involving 409 stores [48]. - The company acquired a 51% stake in a new pharmaceutical chain for 94.61 million yuan, involving 13 stores, with the transaction completed in March 2021 [49]. - The company invested 6,834.416 million yuan to acquire a 51% stake in a pharmacy chain involving 59 stores, with the transaction completed in April 2021 [50]. - The company acquired 51% and 5% stakes in Xi'an Wanbaiquan Pharmaceutical Co., involving 55 stores, for a total of 46.9 million yuan [51]. - The company purchased a 19% stake in Chengdu Yifeng Likang Pharmaceutical Chain for 15.37 million yuan and later acquired an additional 32% stake for 30.72 million yuan, achieving a total of 51% ownership, involving 12 stores [51]. - The company invested 12.71 million yuan to acquire 51% of Yangzhou Baixingrenjia Pharmaceutical Chain, involving 14 stores [51]. - The company acquired tangible and intangible assets of 20 stores from Meizhou Yimin Pharmacy for 15 million yuan [51]. - The company purchased a 56% stake in Daqing Foster Pharmaceutical Chain for 26.47 million yuan, involving 18 stores [51]. - The company acquired 100% of Hebei Yibao Pharmaceutical Technology for 10 million yuan, which has drug wholesale qualifications [51]. Research and Development - Research and development expenses surged by 641.53% to ¥6,645,350.13, compared to ¥896,171.40 in the previous year, driven by increased R&D activities in subsidiaries [31]. - The company developed 1,171 chronic disease service points, with 87.23% of stores qualifying for medical insurance, and trained 1,198 chronic disease specialists [27]. - The company actively explored the integration of pharmaceutical and insurance services, achieving stable growth in value-added sales [28]. - The company increased its self-operated traditional Chinese medicine production capacity, focusing on high-potential products to meet growing health and wellness demands [27]. - The company added 2,079 licensed pharmacists during the reporting period, enhancing its professional service capabilities [29]. - The company implemented a talent development strategy, establishing training programs and partnerships with over 80 universities to cultivate a skilled workforce [29]. Financial Position and Liabilities - The company's consolidated asset-liability ratio as of June 30, 2021, was 64.01% [100]. - The cash arrangement for future debt repayment remains stable, with the credit rating for the company and its bonds maintained at AA [100]. - The company's cash and cash equivalents as of June 30, 2021, were CNY 2,701,828,606.80, down from CNY 3,750,371,716.05 at the end of 2020 [101]. - The total current assets decreased to CNY 7,409,919,030.02 from CNY 8,297,309,739.11 [101]. - The inventory as of June 30, 2021, was CNY 2,991,268,975.30, an increase from CNY 2,682,529,019.44 at the end of 2020 [101]. - Total liabilities reached ¥9,973,545,200.33, up from ¥6,759,026,117.38, marking an increase of around 47.8% [103]. - Owner's equity totaled ¥5,607,902,155.95, compared to ¥5,572,899,901.98, showing a slight increase of about 0.6% [103]. - The company reported a financial expense of ¥72,101,037.69, compared to a financial income of -¥1,672,589.36 in the previous year, showing a shift in financial performance [108]. Compliance and Governance - The company has committed to enhancing compliance and governance practices following regulatory scrutiny of a board member's trading activities [75]. - The company and its major shareholders maintained compliance with laws and regulations, with no significant debts or court judgments outstanding [76]. - The company has implemented measures to prevent related party fund occupation, including establishing strict financial management systems [73]. - There were no non-operating fund occupations by major shareholders or related parties during the reporting period [74]. - The company has not engaged in any significant related party transactions during the reporting period [78]. - The company has not faced any bankruptcy reorganization matters during the reporting period [74]. - The company has not reported any significant contracts or guarantees during the reporting period [79]. Shareholder Information - The company reported a total of 2,280,500 restricted shares before the recent changes, which increased to 2,736,600 after the issuance of 456,100 shares from capital reserves [81]. - The unrestricted circulating shares were 656,340,654 before the changes, which increased to 787,609,651 after the addition of 131,268,261 shares from capital reserves [81]. - The top shareholder, Ke Jinlong, holds 168,466,562 shares, representing 21.32% of the total shares [85]. - The company’s board members, including Ke Yunfeng and Ke Jinlong, increased their holdings by 28,077,760 shares each due to capital reserve conversion [88]. - The total number of ordinary shareholders was 30,550 [83]. - The total number of convertible bondholders for Daceng Convertible Bonds is 5,646 [92]. Environmental and Social Responsibility - The company emphasizes social responsibility and community engagement, actively participating in pandemic relief and public welfare initiatives [25]. - The company is committed to environmental protection, enhancing its management plans, and promoting energy-saving and carbon reduction initiatives [64]. - The company has not reported any significant changes in its environmental information or commitments during the reporting period [64].