朗玛信息(300288) - 2019 Q4 - 年度财报

Important Notice, Table of Contents, and Definitions This section provides an important notice regarding the annual report's authenticity, accuracy, and completeness, along with definitions of key terms Important Notice This chapter emphasizes the truthfulness, accuracy, and completeness of the annual report content, and discloses the main risks faced by the company, including intensified market competition, changes in industrial policies, adjustments in telecom value-added services, management risks from asset expansion, and goodwill impairment risks - The company faces major operational risks including: - Intensified market competition: Capital influx into the internet healthcare industry, especially from large pharmaceutical companies and internet giants, intensifies market competition[5] - Changes in industrial policies: Due to the specificity of the healthcare industry and increasingly stringent regulatory environment, the company faces risks from policy adjustments and stricter supervision[6] - Telecom value-added business adjustments: Affected by operator business structure adjustments, the company's traditional "Phone Match" business revenue significantly declined, with development focus shifting to healthcare business[7] - Management and operational risks: The expansion of the company's assets and personnel scale imposes higher requirements on operational decisions, management operations, and risk control[8] - Goodwill impairment risk: The company's goodwill primarily stems from the 2014 acquisition of Qisheng Information; if Qisheng Information's operating performance declines in the future, it will lead to goodwill impairment risk; in 2019, Qisheng Information achieved a net profit of RMB 75.48 million, with no goodwill impairment occurring[10] - The company plans to non-publicly issue shares to raise no more than RMB 283 million for the functional upgrade and content expansion of its smart healthcare service platform, but this matter is subject to CSRC approval and carries uncertainty[11] - The company's 2019 profit distribution plan is: based on 337,941,402 shares, a cash dividend of RMB 0.21 (tax inclusive) per 10 shares will be distributed to all shareholders[11] Definitions This chapter defines key terms and company entity abbreviations used in the report, such as "Phone Match", "39 Internet Hospital", "Qisheng Information", and "Liuyi Company", providing a basis for understanding the report content Company Profile and Key Financial Indicators This section presents the company's basic information and a summary of its key financial performance and position for the reporting period Company Information This chapter provides the company's basic business registration information, contact details, and information disclosure channels Company Information | Item | Information | | :--- | :--- | | Stock Abbreviation | Longmaster Information | | Stock Code | 300288 | | Legal Representative | Wang Wei | | Registered Address | No. 31 Changling South Road, Jinyang Science and Technology Industrial Park, Guiyang National High-tech Industrial Development Zone, Guiyang City, Guizhou Province | | International Internet Website | www.longmaster.com.cn | Key Accounting Data and Financial Indicators In 2019, the company's performance declined, with operating revenue decreasing by 4.89% year-on-year, and net profit attributable to shareholders of the listed company decreasing by 36.87% year-on-year; net cash flow from operating activities also decreased by 18.40% year-on-year; despite an increase in total assets, profitability indicators such as return on net assets declined Key Financial Indicators | Key Financial Indicators | 2019 | 2018 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 435,706,090.79 | 458,109,105.00 | -4.89% | | Net Profit Attributable to Shareholders of Listed Company (RMB) | 65,909,367.29 | 104,398,064.60 | -36.87% | | Net Profit Excluding Non-recurring Items (RMB) | 55,645,052.24 | 91,330,554.30 | -39.07% | | Net Cash Flow from Operating Activities (RMB) | 101,051,748.84 | 123,837,769.39 | -18.40% | | Basic Earnings Per Share (RMB/share) | 0.20 | 0.31 | -35.48% | | Weighted Average Return on Net Assets | 4.88% | 8.25% | -3.37% | | Total Assets (RMB) | 1,856,177,613.28 | 1,722,366,727.60 | 7.77% | | Net Assets Attributable to Shareholders of Listed Company (RMB) | 1,367,083,665.24 | 1,318,071,368.05 | 3.72% | 2019 Quarterly Financial Indicators | 2019 Quarterly Financial Indicators | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 115,110,413.66 | 119,078,072.07 | 114,473,430.04 | 87,044,175.02 | | Net Profit Attributable to Parent Company (RMB) | 18,952,556.07 | 25,101,848.64 | 22,389,087.62 | -534,125.04 | - In 2019, the company's total non-recurring gains and losses amounted to RMB 10.26 million, primarily from government subsidies[25] Business Overview This section outlines the company's primary business segments, significant asset changes, and core competitive advantages Main Businesses During the Reporting Period The company focuses on two major business segments: medical services + internet healthcare and telecom & telecom value-added services; the medical segment, relying on its physical hospital (Guiyang No. 6 Hospital), has built an ecosystem integrating medical information services, internet hospitals, IPTV health platforms, smart wearable devices, and pharmaceutical distribution; the telecom segment includes mobile resale and traditional "Phone Match" businesses, providing cash flow support for the company - The company's businesses are mainly divided into two segments: - Medical Services + Internet Healthcare Business: Deeply cultivates "Internet + Healthcare", relying on offline medical institutions to integrate and build the "39" internet healthcare brand, merging online and offline services[28][29] - Telecom and Telecom Value-Added Business: Includes mobile resale business and "Phone Match" business, providing cash flow for the company's development[28][37] - During the COVID-19 pandemic, the company utilized "Internet + Healthcare" technology to provide free remote consultation services to the public, aiming to alleviate pressure on physical medical institutions and reduce the risk of cross-infection[29] Significant Changes in Major Assets During the reporting period, the company's major assets underwent significant changes; monetary funds increased substantially by 35.65% due to cash retained from operating activities and bank loans; prepayments and deferred income tax assets also increased by 91.34% and 68.06% respectively; additionally, other non-current assets surged by 299.92% due to prepaid medical equipment purchases Major Asset Changes | Major Assets | Period-end vs. Year-start Growth Rate | Explanation of Significant Change | | :--- | :--- | :--- | | Monetary Funds | 35.65% | Due to cash retained from operating activities and bank loans | | Prepayments | 91.34% | Due to prepaid telecom settlement fees by Longmaster Communication | | Deferred Income Tax Assets | 68.06% | Due to deductible temporary differences arising from tax losses | | Other Non-current Assets | 299.92% | Due to prepaid medical equipment purchases by Liuyi Company | Analysis of Core Competencies The company's core competencies are evident in multiple areas; in internet healthcare, the company emphasizes adherence to medical principles and possesses policy support, professional teams, medical resources, and technological advantages (e.g., AI imaging diagnosis); in information services, 39 Health Network boasts advantages in traffic, content, and resources; furthermore, the company has established solid competitive advantages in pharmaceutical distribution and telecom value-added services - Internet Healthcare and Medical Services Competitiveness: - Adherence to medical principles: Believes that the essence of internet healthcare is medical treatment, with the internet serving as a connector and amplifier[40] - Policy support: Business receives strong support from various levels of government in Guizhou Province[40] - Team advantage: Medical industry professionals and internet operation teams form a complementary advantage[41] - Technological advantage: Possesses technological accumulation in audio-video communication and AI imaging diagnosis[42] - Internet Information Service Industry Competitiveness: - 39 Health Network possesses advantages in traffic, content, resources, and talent, making it a leading health portal website in China[43] Management Discussion and Analysis This section provides an overview of the company's operational performance, detailed analysis of its main business segments, R&D investments, cash flow, and future development outlook Overview In 2019, the company continued to focus on the big data and big health industry, forming an "Internet + Healthcare" service closed-loop supported by physical hospitals, and developing telecom businesses to ensure cash flow; the company was again selected among "China's Top 100 Internet Enterprises", rising to 35th place; among its business segments, 39 Health Network's revenue slightly increased by 1.25%, physical hospital Liuyi Company's revenue grew by 2.26%, mobile resale business increased by 38.57%, while traditional Phone Match business revenue significantly declined by 65.59% due to operator policy changes - The company was again selected among "China's Top 100 Internet Enterprises" in 2019, rising from 39th to 35th place, making it the only "Internet + Healthcare" enterprise to be continuously selected for four years in China[53] Business Segment Performance | Business Segment | 2019 Revenue/Performance | Year-on-Year Change | | :--- | :--- | :--- | | 39 Health Network (Qisheng Information) | RMB 155.24 million | +1.25% | | Physical Hospital (Liuyi Company) | RMB 183.68 million | +2.26% | | Mobile Resale Business | RMB 58.30 million | +38.57% | | Phone Match Business | RMB 25.89 million | -65.59% | | Pharmaceutical Distribution Business (E-commerce) | RMB 2.61 billion | -4.52% | - In 2019, the physical hospital (Guiyang Liuyi) saw increases in total outpatient visits, inpatient numbers, and surgical procedures by 6.07%, 2.45%, and 6.55% respectively, compared to the previous year[56] Analysis of Main Business In 2019, the company's total operating revenue was RMB 436 million, a 4.89% year-on-year decrease; by product segment, medical services and medical information services are the main revenue sources, accounting for 41.45% and 35.29% respectively, both achieving slight growth; mobile resale business grew significantly (+38.57%), but traditional IPTV and Phone Match business revenue sharply declined (-58.99%); overall gross profit margin was 42.48%, down 6.86 percentage points from the previous year, mainly due to the contraction of high-margin phone business and increased costs in lower-margin medical services Operating Revenue Composition (by Product) | Operating Revenue Composition (by Product) | 2019 Amount (RMB) | Proportion of Total Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Medical Services | 180,598,892.81 | 41.45% | +2.62% | | Medical Information Services | 153,774,628.78 | 35.29% | +1.94% | | Mobile Resale Business | 58,297,300.47 | 13.38% | +38.57% | | IPTV Business and Phone Match Business | 31,751,472.43 | 7.29% | -58.99% | | Total Operating Revenue | 435,706,090.79 | 100% | -4.89% | Gross Profit Margin of Main Products | Main Product Gross Profit Margin | 2019 Gross Profit Margin | Change in Gross Profit Margin from Previous Year | | :--- | :--- | :--- | | Medical Information Services | 79.66% | -3.90% | | IPTV Business and Phone Match Business | 78.99% | -9.79% | | Mobile Resale Business | 43.73% | +14.64% | | Medical Services | 4.54% | -3.40% | | Total | 42.48% | -6.86% | Expense Items | Expense Item | 2019 Amount (RMB) | Year-on-Year Change | Explanation of Change | | :--- | :--- | :--- | :--- | | Selling Expenses | 19,204,737.60 | -28.92% | Decrease in Phone Match business volume, leading to reduced corresponding expenses | | Administrative Expenses | 79,309,698.06 | -4.36% | - | | Financial Expenses | 6,417,972.75 | 87.54% | Increase in interest due to increased borrowings in the current period | | R&D Expenses | 33,357,892.62 | -8.36% | - | R&D Investment The company continues to invest in R&D in the internet healthcare sector, with RMB 33.36 million invested in R&D in 2019, accounting for 7.66% of operating revenue; R&D directions include cloud consultation service platforms, health management service platforms, smart healthcare family health service platforms, and medical informatization products; R&D investment as a percentage of revenue has remained between 7.5% and 8% over the past three years R&D Investment | R&D Investment | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | R&D Investment Amount (RMB) | 33,357,892.62 | 36,401,121.77 | 33,053,246.28 | | R&D Investment as % of Operating Revenue | 7.66% | 7.95% | 8.03% | | Number of R&D Personnel (persons) | 207 | 235 | 230 | Cash Flow In 2019, the company's net cash flow from operating activities was RMB 101.05 million, a 18.40% year-on-year decrease; net cash outflow from investing activities significantly decreased by 52.59%, mainly due to reduced capital expenditure on construction in progress by Liuyi Company; net cash inflow from financing activities increased by 52.69%; ultimately, the net increase in cash and cash equivalents was RMB 83.99 million, a year-on-year increase of over 11 times, primarily driven by bank borrowings and retained operating cash Cash Flow Statement Items | Cash Flow Statement Item | 2019 (RMB) | 2018 (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 101,051,748.84 | 123,837,769.39 | -18.40% | | Net Cash Flow from Investing Activities | -72,935,215.34 | -153,834,794.96 | -52.59% | | Net Cash Flow from Financing Activities | 55,869,335.95 | 36,589,090.59 | 52.69% | | Net Increase in Cash and Cash Equivalents | 83,985,869.45 | 6,592,065.02 | 1,174.04% | Outlook for Company's Future Development The company will continue to focus on the medical + internet business segment, building the "39" internet healthcare brand; key development areas include exploring the integration of 39 Health Network with online businesses, advancing the upgrade and construction of Guiyang Liuyi physical hospital to create a smart hospital demonstration, developing chronic disease management based on the "39 Health Medical Service Platform", assisting grassroots medical institutions through remote medical models, and stabilizing telecom value-added businesses to ensure cash flow - The company faces major risks including external competition, business innovation, exploration of scaled profitability, and talent shortage[96] - 2020 Key Initiatives: - 39 Health Network: Build vertical content integrated marketing capabilities and promote new media productization[98] - Guiyang Liuyi: Advance physical hospital upgrades, build smart hospitals, and create a national internet hospital demonstration[98] - 39 Health Medical Service Platform: Explore chronic disease management product systems and develop chronic disease management services based on smart wearable devices[99] - Remote Medical Care: Provide specialized department construction solutions for county-level and private hospitals through "mobile internet + on-site" models[99] - Telecom Business: Stabilize telecom value-added businesses and expand mobile resale business to ensure cash flow for company development[100][101] Significant Events This section details important corporate events including profit distribution, major litigation, related-party transactions, and social responsibility initiatives Profit Distribution and Capital Reserve Conversion to Share Capital The company's 2019 profit distribution plan is a cash dividend of RMB 0.21 (tax inclusive) per 10 shares, totaling RMB 7.10 million, accounting for 10.77% of the net profit attributable to the parent company for the year; over the past three years, cash dividends were distributed in 2018, but not in 2017 Cash Dividends | Dividend Year | Cash Dividend Amount (Tax Inclusive, RMB) | Ratio to Net Profit Attributable to Parent Company in Consolidated Statements | | :--- | :--- | :--- | | 2019 | 7,096,769.44 | 10.77% | | 2018 | 16,897,070.10 | 16.19% | | 2017 | 0.00 | 0.00% | Major Litigation and Arbitration Matters During the reporting period, the company's controlling subsidiary, Guiyang No. 6 Hospital Co., Ltd., was involved in a construction contract dispute with Guizhou Jian Gong Group Sixth Construction Engineering Co., Ltd., with the case amount reaching RMB 76.90 million, and the case is still under trial - Controlling subsidiary Guiyang No. 6 Hospital Co., Ltd. was sued due to a construction contract dispute, involving RMB 76.90 million, and the case is currently in litigation[123] Major Related-Party Transactions During the reporting period, the company's routine related-party transactions primarily involved its controlling subsidiary, Liuyi Company, purchasing pharmaceuticals and medical consumables from related party Guiyang City Pharmaceutical E-commerce Service Co., Ltd., with a transaction amount of RMB 42.75 million; additionally, Liuyi Company had website maintenance and labor cooperation with related party Guiyang Sanjiu Internet Medical Co., Ltd Related-Party Transactions | Related Party | Related Transaction Content | Related Transaction Amount (RMB million) | | :--- | :--- | :--- | | Guiyang City Pharmaceutical E-commerce Service Co., Ltd. | Purchase of pharmaceuticals, medical consumables, etc. | 42.75 | | Guiyang Sanjiu Internet Medical Co., Ltd. | Website maintenance and labor | 4.72 | Social Responsibility The company actively fulfills its social responsibilities, especially during the COVID-19 pandemic, where its 39 Internet Hospital, 39 Health Network, and other platforms jointly launched free remote medical consultation activities, accumulating a huge service volume; additionally, the company continued to carry out "Internet + Medical Poverty Alleviation" work in various parts of Guizhou, providing assistance through industrial, educational, and health initiatives, investing RMB 0.16 million in poverty alleviation funds in 2019 - In response to the COVID-19 pandemic, the company, in collaboration with China Volunteer Doctors and other organizations, launched a free remote consultation platform, accumulating over 8,000 video consultations and over 50,000 text consultations, with the pandemic special topic generating over 400 million total traffic[144][145] - The company continued to carry out targeted poverty alleviation work, investing RMB 0.16 million in poverty alleviation funds in 2019, providing medical and health assistance in Nayong County, Xishui County, and other areas of Guizhou Province, helping 35 registered impoverished individuals escape poverty[148][149] Share Changes and Shareholder Information This section covers changes in the company's share capital structure and provides details on its shareholders and actual controller Share Change Information During the reporting period, the company's total share capital of 337,941,402 shares remained unchanged; due to executive departures and position changes, restricted shares increased by 4,449,025 shares, and unrestricted shares decreased accordingly, leading to an increase in the restricted share ratio from 38.80% to 40.12% Share Changes | Share Class | Before This Change | After This Change | Reason for Change | | :--- | :--- | :--- | :--- | | Restricted Shares | 131,124,889 | 135,573,914 | Share lock-up changes due to executive departures and resignations | | Unrestricted Shares | 206,816,513 | 202,367,488 | Corresponding adjustment | | Total Share Capital | 337,941,402 | 337,941,402 | Unchanged | Shareholders and Actual Controller Information As of the end of the reporting period, the company had a total of 33,823 common shareholders; the actual controller, Mr. Wang Wei, directly holds 36.36% of the shares and indirectly holds shares through Guiyang Longmaster Investment Consulting Enterprise (Limited Partnership) which he controls, collectively controlling 37.81% of the company's shares; among the top ten shareholders, besides Wang Wei and his concerted parties, all are natural person shareholders or private equity funds - As of the end of 2019, the company had a total of 33,823 shareholders[163] Top Five Shareholders | Top Five Shareholders | Shareholder Nature | Shareholding Ratio | Number of Shares Held | | :--- | :--- | :--- | :--- | | Wang Wei | Domestic Natural Person | 36.36% | 119,496,015 | | Jin Guowen | Domestic Natural Person | 7.11% | 24,036,100 | | Liu Ling | Domestic Natural Person | 4.53% | 15,312,900 | | Huang Guohong | Domestic Natural Person | 4.44% | 14,991,086 | | Guiyang Longmaster Investment Consulting Enterprise (Limited Partnership) | Domestic Non-State-Owned Legal Person | 2.45% | 8,285,640 | - The company's controlling shareholder and actual controller is Mr. Wang Wei; he and Guiyang Longmaster Investment Consulting Enterprise (Limited Partnership) are concerted parties, collectively controlling 37.81% of the company's shares[164][664] Directors, Supervisors, Senior Management, and Employees This section provides information on the shareholdings, remuneration, and overall composition of the company's directors, supervisors, senior management, and employees Shareholding Changes of Directors, Supervisors, and Senior Management During the reporting period, company Chairman Wang Wei reduced his holdings by approximately 3 million shares, and Vice Chairman Huang Guohong reduced his holdings by approximately 4.99 million shares; Director and Deputy General Manager Jin Guowen's shareholding status changed due to his departure, but the total number of shares remained unchanged; the total shares held by directors, supervisors, and senior management decreased from 167 million shares at the beginning of the period to 159 million shares at the end of the period Shareholding Changes of Directors, Supervisors, and Senior Management | Name | Position | Shares Held at Beginning of Period (shares) | Shares Reduced in Current Period (shares) | Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | | Wang Wei | Chairman | 122,496,000 | 2,999,985 | 119,496,015 | | Huang Guohong | Vice Chairman (Departed) | 19,981,086 | 4,990,000 | 14,991,086 | | Jin Guowen | Director, Deputy General Manager (Departed) | 24,036,100 | 0 | 24,036,100 | Remuneration of Directors, Supervisors, and Senior Management In 2019, the total pre-tax remuneration received by the company's directors, supervisors, and senior management was RMB 8.50 million; among them, Chairman Mr. Wang Wei's remuneration was the highest at RMB 1.51 million, and Director and General Manager Mr. Wang Jian's was RMB 1.23 million; the stipends for the three independent directors were all RMB 0.12 million - In 2019, the total pre-tax remuneration received by the company's directors, supervisors, and senior management was RMB 8.50 million[195] Employee Information As of the end of the reporting period, the company had a total of 1,187 active employees; by professional composition, medical and nursing staff accounted for the largest proportion at 568 people, followed by technical personnel (207 people) and administrative personnel (159 people); in terms of education level, employees with a bachelor's degree or above accounted for more than half Employee Professional Composition | Professional Composition | Number of Persons (persons) | | :--- | :--- | | Medical and Nursing Staff | 568 | | Technical Personnel | 207 | | Administrative Personnel | 159 | | Sales Personnel | 127 | | Customer Service Personnel | 87 | | Financial Personnel | 38 | | Production Personnel | 1 | | Total | 1,187 | Corporate Governance This section describes the company's corporate governance framework, its compliance with regulatory requirements, and the status of its internal control system Basic Status of Corporate Governance The company has established a governance structure with clear responsibilities and standardized operations, consisting of the general meeting of shareholders, board of directors, supervisory board, and senior management, in accordance with the "Company Law" and other regulations; the actual corporate governance status complies with relevant regulatory provisions, maintaining "five independences" from the controlling shareholder in terms of business, personnel, assets, organization, and finance - The actual corporate governance status complies with the requirements of the "Guidelines for Corporate Governance of Listed Companies" and the "Guidelines for Standardized Operation of Companies Listed on the ChiNext Board of Shenzhen Stock Exchange"[204] - The company maintains "five independences" from its controlling shareholder in terms of business, personnel, assets, organization, and finance[205] Internal Control Evaluation Report According to the company's internal control self-evaluation report, the total assets and operating revenue of the units included in the evaluation scope both accounted for 100% of the consolidated financial statements; during the reporting period, the company found no material weaknesses or significant deficiencies in internal control related to financial and non-financial reporting Internal Control Defect Status | Internal Control Defect Status | Number (units) | | :--- | :--- | | Material Weaknesses in Financial Reporting | 0 | | Material Weaknesses in Non-Financial Reporting | 0 | | Significant Deficiencies in Financial Reporting | 0 | | Significant Deficiencies in Non-Financial Reporting | 0 | Financial Report This section includes the independent auditor's report, the company's consolidated and parent company financial statements, and detailed notes to the financial statements Audit Report Dahua Certified Public Accountants issued a standard unqualified audit opinion on the company's 2019 financial statements; the audit report specifically highlighted two key audit matters: revenue recognition and goodwill impairment, considering both to involve significant management judgment and estimation, posing potential risks of material misstatement - The audit firm issued a standard unqualified audit opinion[221] - Key audit matters are: 1. Revenue Recognition: As operating revenue is a significant financial indicator, management's judgment and presentation in revenue recognition may pose a significant risk of material misstatement[225][226] 2. Goodwill Impairment: As of the end of 2019, the carrying value of goodwill accounted for 30.72% of total assets, which is material, and impairment testing involves significant management judgment and estimation[225][227] Financial Statements This chapter provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the year 2019; key data shows that the company's total assets increased from RMB 1.72 billion to RMB 1.86 billion, but net profit decreased from RMB 104 million to RMB 66 million Key Items from Consolidated Balance Sheet | Key Items from Consolidated Balance Sheet | December 31, 2019 (RMB) | December 31, 2018 (RMB) | | :--- | :--- | :--- | | Total Assets | 1,856,177,613.28 | 1,722,366,727.60 | | Total Liabilities | 440,486,121.44 | 348,754,796.46 | | Total Owners' Equity Attributable to Parent Company | 1,367,083,665.24 | 1,318,071,368.05 | Key Items from Consolidated Income Statement | Key Items from Consolidated Income Statement | 2019 (RMB) | 2018 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 435,706,090.79 | 458,109,105.00 | | Operating Profit | 72,836,336.74 | 108,832,131.73 | | Total Profit | 72,795,558.52 | 111,174,797.21 | | Net Profit Attributable to Parent Company Owners | 65,909,367.29 | 104,398,064.60 | Notes to Consolidated Financial Statement Items This chapter provides detailed explanations of major items in the consolidated financial statements; as of the end of the period, RMB 21.79 million of the company's monetary funds were judicially frozen due to litigation; the original carrying value of goodwill was RMB 580 million, primarily from the acquisition of Guangzhou Qisheng Information, with a total goodwill impairment of RMB 4.75 million recognized for Guiyang No. 6 Hospital and Guizhou Laya Technology in the current period; among long-term equity investments, the investment in associate Guiyang City Pharmaceutical E-commerce Service Co., Ltd. had the highest carrying value at RMB 285 million - As of the end of the period, RMB 21.79 million of the company's monetary funds were judicially frozen due to litigation[437] Goodwill Impairment Provision | Goodwill Impairment Provision | Beginning Balance (RMB) | Provision in Current Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | | Guiyang No. 6 Hospital Co., Ltd. | 4,627,139.97 | 1,846,674.07 | 6,473,814.04 | | Guizhou Laya Technology Co., Ltd. | 0.00 | 2,906,794.03 | 2,906,794.03 | | Total | 4,627,139.97 | 4,753,468.10 | 9,380,608.07 | - Full impairment provision was recognized for the goodwill of Guizhou Laya Technology Co., Ltd. because it has not yet obtained a medical device production license, and its operating situation has significant uncertainties[511] - The total government subsidies received by the company in 2019 and recognized in current profit or loss amounted to RMB 11.84 million[741]