Bohui Innovation(SZ:300318)2020-08-27 16:00markdown [Important Notice, Table of Contents, and Definitions](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA%E3%80%81%E7%9B%AE%E5%BD%95%E5%92%8C%E9%87%8A%E4%B9%89) This section provides an overview of the report's structure, including important disclaimers, the table of contents, and definitions of key terms [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's management guarantees the truthfulness and completeness of this semi-annual report, with no plans for profit distribution or capital reserve conversion during the period - The company's management guarantees the truthfulness, accuracy, and completeness of the report content and assumes legal responsibility[3](index=3&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=%E7%9B%AE%E5%BD%95) This section outlines the report's overall structure, covering twelve main parts from company overview to financial statements [Definitions](index=4&type=section&id=%E9%87%8A%E4%B9%89) This section defines specific terms, abbreviations, and professional jargon used in the report for investor clarity, including company entities and key products [Company Profile and Key Financial Indicators](index=5&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section introduces the company's profile and key financial indicators, including its basic information and performance metrics [Company Profile](index=5&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) Beijing Bohui Innovation Biotechnology Co., Ltd. (stock code: 300318) is listed on the Shenzhen Stock Exchange, with Zhai Xiaofeng as its legal representative | Item | Information | | :--- | :--- | | Stock Abbreviation | Bohui Innovation | | Stock Code | 300318 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Zhai Xiaofeng | [Key Accounting Data and Financial Indicators](index=6&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) During the reporting period, revenue decreased by 7.89% year-over-year, and net profit attributable to shareholders turned to a loss, declining by 1,147.09%, while operating cash flow significantly improved by 196.21% and total assets grew by 34.74% | Indicator | Current Period | Prior Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (Million Yuan) | 270.78 | 293.96 | -7.89% | | Net Profit Attributable to Shareholders (Million Yuan) | -15.95 | 1.52 | -1,147.09% | | Net Cash Flow from Operating Activities (Million Yuan) | 49.87 | -51.83 | 196.21% | | Basic EPS (Yuan/Share) | -0.0195 | 0.0019 | -1,126.32% | | **Indicator** | **Period-End** | **Prior Year-End** | **YoY Change** | | Total Assets (Billion Yuan) | 3.63 | 2.69 | 34.74% | | Net Assets Attributable to Shareholders (Billion Yuan) | 1.27 | 1.03 | 23.58% | [Non-Recurring Gains and Losses](index=7&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) Non-recurring gains and losses totaled 0.95 million Yuan, primarily comprising government subsidies of 2.91 million Yuan and net non-operating and investment-related losses | Item | Amount (Million Yuan) | | :--- | :--- | | Government Subsidies | 2.91 | | Net Other Non-Operating Income and Expenses | -1.30 | | Fair Value Change Gains and Losses from Trading Financial Assets | -0.83 | | Gains and Losses from Disposal of Non-Current Assets | 0.36 | | **Total** | **0.95** | [Business Overview](index=8&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E5%85%AC%E5%8F%B8%E4%B8%9A%E5%8A%A1%E6%A6%82%E8%A6%81) This section details the company's core businesses, significant asset changes, and competitive advantages [Main Businesses During the Reporting Period](index=8&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company's main businesses include testing and diagnostics, focusing on in-vitro diagnostic products like trace element and HPV nucleic acid detection systems, and blood products, managed by subsidiaries Hebei Daan and Guangdong Weilun, offering human albumin and immunoglobulins [Testing and Diagnostics Business](index=8&type=section&id=1%E3%80%81%E6%A3%80%E9%AA%8C%E6%A3%80%E6%B5%8B%E4%B8%9A%E5%8A%A1) The core testing and diagnostics products are closed-system human trace element detection and microfluidic nucleic acid chip-based HPV detection, with stable market presence and rapid growth respectively, driven by instrument and reagent sales - The company's testing and diagnostics business primarily offers human trace element detection systems and HPV detection products, both closed-system solutions[25](index=25&type=chunk)[26](index=26&type=chunk) - The HPV product, leveraging the company's unique microfluidic nucleic acid chip technology, achieves fully automated nucleic acid molecular detection, making it the first fully automated nucleic acid molecular detection product in China[26](index=26&type=chunk) [Blood Products Business](index=9&type=section&id=2%E3%80%81%E8%A1%80%E6%B6%B2%E5%88%B6%E5%93%81%E4%B8%9A%E5%8A%A1) Blood products business, operated by Hebei Daan and Guangdong Weilun, includes albumin, immunoglobulins, and coagulation factors, relying on plasma stations for raw materials and strict batch release, with sales through distribution and direct channels - The blood products business is operated by subsidiaries Hebei Daan and Guangdong Weilun, with raw plasma supplied by their affiliated plasma collection stations[29](index=29&type=chunk)[30](index=30&type=chunk) | Category | Main Varieties | Application Area | | :--- | :--- | :--- | | Albumin | Human Albumin | Regulates plasma osmotic pressure, used in oncology, liver disease treatment | | Immunoglobulin | Human Immunoglobulin, Intravenous Human Immunoglobulin, etc | Treatment of immune diseases, passive immunization against infectious diseases | | Coagulation Factors | Human Prothrombin Complex | Used for treating coagulation factor deficiencies | [Significant Changes in Major Assets](index=12&type=section&id=%E4%BA%8C%E3%80%81%E4%B8%BB%E8%A6%81%E8%B5%84%E4%BA%A7%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8C%96%E6%83%85%E5%86%B5) Major assets saw significant changes due to the merger of subsidiary Hebei Daan with Zhongke Bio, leading to substantial increases in fixed assets, intangible assets, construction in progress, and goodwill, while cash grew from Hebei Daan's capital injection | Major Asset | Period-End vs. Year-Start Change | Explanation of Significant Change | | :--- | :--- | :--- | | Fixed Assets | +51.96% | Primarily due to the merger with Zhongke Bio | | Intangible Assets | +66.18% | Primarily due to the merger with Zhongke Bio | | Construction in Progress | +46.03% | Primarily due to the merger with Zhongke Bio and the capitalization of the company's Phase II base | | Monetary Funds | +329.4% | Primarily due to capital injection received by Hebei Daan | | Goodwill | +41.16% | Primarily due to new goodwill from the merger with Zhongke Bio | [Analysis of Core Competencies](index=13&type=section&id=%E4%B8%89%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competencies include continuous technological innovation, high-barrier products, effective quality management, and talent development, with exclusive microfluidic chip technology in diagnostics and strengthening R&D in blood products, adhering to GMP standards - The company has undertaken multiple national-level major scientific research projects in testing and diagnostics, holding exclusive patented technology for its microfluidic chip molecular diagnostic platform[49](index=49&type=chunk)[50](index=50&type=chunk) - R&D in blood products advanced, with subsidiary Hebei Daan obtaining drug registration certificates for intravenous human immunoglobulin and human prothrombin complex in July 2020[49](index=49&type=chunk) - The company prioritizes quality system development, having obtained medical device GMP, ISO13485, and ISO9001 certifications, with blood product manufacturing facilities compliant with GMP standards[51](index=51&type=chunk)[52](index=52&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section discusses the company's operational performance, financial status, and risk management strategies [Overview](index=15&type=section&id=%E4%B8%80%E3%80%81%E6%A6%82%E8%BF%B0) In H1 2020, revenue decreased by 7.89% to 271 million Yuan, and net profit attributable to parent company was -15.95 million Yuan, down 1147.09% due to COVID-19 impacting testing and diagnostics, while blood products grew by 16%, with Q2 losses narrowing - Testing and diagnostics business: Achieved main business revenue of **102 million Yuan**, a year-over-year decrease of **31.35%**, primarily due to reduced hospital health screening volumes during the pandemic[57](index=57&type=chunk) - Blood products business: Achieved main business revenue of **169 million Yuan**, a year-over-year increase of **15.98%**, primarily due to a significant sales increase of intravenous human immunoglobulin produced by Guangdong Weilun as an epidemic prevention drug[61](index=61&type=chunk) - R&D made positive progress, with Hebei Daan obtaining drug registration certificates for intravenous human immunoglobulin and human prothrombin complex in July 2020, enhancing its product structure[62](index=62&type=chunk) - Hebei Daan completed a capital increase and acquisition of **72% equity** in Zhongke Bio, strengthening capital and optimizing the competitive landscape[62](index=62&type=chunk) [Analysis of Main Business Operations](index=20&type=section&id=%E4%BA%8C%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Main business operations showed divergence due to the pandemic, with instrument, software, reagent, and albumin revenues declining by 20-35%, while intravenous immunoglobulin (IVIG) revenue nearly doubled, despite a decrease in its gross margin due to rising costs | Item | Current Period | Prior Year Period | YoY Change | Main Reason | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (Million Yuan) | 271 | 294 | -7.89% | COVID-19 impacted testing business revenue | | Financial Expenses (Million Yuan) | 17.38 | 11.72 | +48.22% | Increase in interest expenses on borrowings | | R&D Investment (Million Yuan) | 41.61 | 34.58 | +20.32% | - | | Net Cash Flow from Operating Activities (Million Yuan) | 49.87 | -51.83 | +196.21% | Strengthened collection management and expenditure control | | Product/Service | Operating Revenue (Million Yuan) | Gross Margin | Operating Revenue YoY Change | | :--- | :--- | :--- | :--- | | Instruments and Software | 32.99 | 30.96% | -30.99% | | Reagents | 55.26 | 78.44% | -34.18% | | Albumin | 80.49 | 24.88% | -23.25% | | IVIG | 63.90 | 40.94% | +99.89% | [Analysis of Non-Core Business Operations](index=21&type=section&id=%E4%B8%89%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Non-core operations negatively impacted profit, with investment losses of 0.91 million Yuan from wealth management and derivatives, and non-operating expenses of 1.45 million Yuan due to COVID-19 donations - Investment income was **-0.91 million Yuan**, mainly due to losses from wealth management products and matured forward foreign exchange and risk option contracts[73](index=73&type=chunk) - Non-operating expenses totaled **1.45 million Yuan**, primarily due to donations for the COVID-19 pandemic[74](index=74&type=chunk) [Analysis of Assets and Liabilities](index=22&type=section&id=%E5%9B%9B%E3%80%81%E8%B5%84%E4%BA%A7%E3%80%81%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) At period-end, the company's asset and liability structure significantly changed, with non-current assets like fixed assets and construction in progress increasing, cash substantially rising, inventory share decreasing, and short-term debt increasing while long-term debt decreased [Analysis of Investment Activities](index=23&type=section&id=%E4%BA%94%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) Investment increased by 169.63% year-over-year, primarily for capital injection related to Hebei Daan equity compensation, and the company acquired 72% of Zhongke Bio for 41.76 million Yuan via non-monetary asset exchange, with the deal closed - Investment during the reporting period was **207 million Yuan**, a year-over-year increase of **169.63%**, mainly for capital injection related to Mr. Du Jiangtao's compensation to Hebei Daan on behalf of Yunnan Watson[79](index=79&type=chunk) - Acquired **72% equity** in Zhongke Bio-Pharmaceutical Co., Ltd. for **41.76 million Yuan** through non-monetary asset exchange, with equity transfer completed[81](index=81&type=chunk) [Analysis of Major Holding and Participating Companies](index=25&type=section&id=%E4%B8%83%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) Key subsidiaries showed mixed performance, with blood product subsidiary Hebei Daan achieving a net profit of 16.31 million Yuan, while Guangdong Weilun incurred a loss of 8.26 million Yuan, and US-based testing and diagnostics subsidiary Advion, Inc. reported a loss of 14.12 million Yuan | Company Name | Main Business | Operating Revenue (Million Yuan) | Net Profit (Million Yuan) | | :--- | :--- | :--- | :--- | | Hebei Daan Pharmaceutical Co., Ltd. | Blood Products | 100.36 | 16.31 | | Guangdong Weilun Bio-Pharmaceutical Co., Ltd. | Blood Products | 115.16 | -8.26 | | Advion,Inc. | Testing and Diagnostics | 31.60 | -14.12 | [Risks Faced by the Company and Countermeasures](index=25&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces operational risks from the ongoing COVID-19 pandemic, particularly impacting testing and diagnostics, potential product safety risks in blood products, regulatory risks for plasma stations, and R&D failure risks for medical devices, addressed by strengthening management, quality systems, plasma station digitalization, and advanced R&D tools - COVID-19 impact: Testing and diagnostics revenue decreased, and plasma collection was affected. Countermeasures include strengthening scientific management and cost-saving initiatives[89](index=89&type=chunk)[90](index=90&type=chunk) - Product safety risk: Blood products use special raw materials, posing potential risks of unknown virus transmission. Countermeasures include improving the quality management system and strictly adhering to GMP standards[91](index=91&type=chunk)[92](index=92&type=chunk) - Regulatory risk: Plasma collection station operations require continuous standardization, with risks of penalties due to management oversight. Countermeasures include increasing IT investment for full traceability[93](index=93&type=chunk) - R&D risk: Medical device R&D has long cycles and high difficulty, potentially facing failure risks. Countermeasures include strengthening project management to improve success rates[94](index=94&type=chunk)[95](index=95&type=chunk) [Significant Matters](index=27&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section highlights significant events, including major related-party transactions and subsidiary developments [Major Related-Party Transactions](index=29&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) Several major related-party transactions occurred, including 7.69 million Yuan in product sales to Inner Mongolia Junzheng Group for donations, a planned share issuance to Zhuhai Aosen (controlled by the actual controller) for asset acquisition, and a capital increase for Hebei Daan involving related parties, where the company waived its pre-emptive rights - Subsidiaries Guangdong Weilun and Hebei Daan signed drug purchase and sales contracts totaling **7.69 million Yuan** with related party Inner Mongolia Junzheng Group for public welfare donations to combat the epidemic[113](index=113&type=chunk) - The company plans to issue shares to Zhuhai Aosen, controlled by actual controller Mr. Du Jiangtao, to acquire assets and raise supporting funds[114](index=114&type=chunk) - The company introduced external investors (including related party Shengtai Technology) for a capital increase in subsidiary Hebei Daan and waived its pre-emptive rights[115](index=115&type=chunk) [Significant Matters of Subsidiaries](index=34&type=section&id=%E5%8D%81%E4%B8%83%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) Subsidiaries saw several significant developments, including Hebei Daan's acquisition of 72% of Zhongke Bio (human rabies vaccine producer), a provincial high-tech industrialization project for Hebei Daan, and the expiration of a plasma station license for Guangdong Weilun in February 2020 - Subsidiary Hebei Daan completed the acquisition of **72% equity** in Zhongke Bio, which primarily produces human rabies vaccine[132](index=132&type=chunk) [Share Changes and Shareholder Information](index=35&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section outlines changes in share capital and shareholder structure, including major shareholders' holdings [Share Capital Changes](index=35&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the total share capital remained at 816,900,495 shares, but the share structure changed as 12,677,034 restricted shares converted to unrestricted shares due to automatic unlocking for senior executives, reducing the restricted share percentage from 11.31% to 9.75% - Total share capital remained unchanged at **816,900,495 shares**[137](index=137&type=chunk) - Restricted shares decreased by **12,677,034 shares**, with a corresponding increase in unrestricted shares, due to automatic unlocking for senior executives[137](index=137&type=chunk) [Shareholder Numbers and Shareholding Structure](index=36&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had 27,670 common shareholders, with the actual controller Du Jiangtao and his spouse Hao Hong collectively holding over 51% of shares, and the top ten shareholders primarily being natural persons with a stable structure | Shareholder Name | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | | Du Jiangtao | 39.03% | 318,811,388 | | Hao Hong | 12.59% | 102,809,951 | | Yang Qi | 7.48% | 61,123,211 | | Mei Yingjun | 3.55% | 29,034,177 | | Du Jianghong | 3.00% | 24,478,560 | - Among the top ten shareholders, Du Jiangtao and Hao Hong are spouses, and Du Jiangtao and Du Jianghong are siblings[143](index=143&type=chunk) [Directors, Supervisors, and Senior Management](index=41&type=section&id=%E7%AC%AC%E4%B9%9D%E8%8A%82%20%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%83%85%E5%86%B5) This section details changes in the board of directors, supervisors, and senior management personnel [Changes in Directors, Supervisors, and Senior Management](index=42&type=section&id=%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the board, supervisory board, and senior management underwent significant changes due to elections, resignations, and term expirations, with new vice chairmen, directors, general managers, independent directors, supervisors, and deputy general managers appointed - Appointments: Mr. Jiang Yan was appointed General Manager, Mr. Wang Wei and Mr. Zhang Lei as Deputy General Managers, and Mr. Dong Haifeng as Chief Financial Officer[157](index=157&type=chunk) - Board and management changes: Former Chairman Lu Xinqun, Director Yang Qi, and other executives departed due to term expiration. New members elected include Shen Zhiwei as Vice Chairman, Jiang Yan and Wang Wei as Directors, and Ban Jun and Zhang Xiaosu as Independent Directors[157](index=157&type=chunk) [Financial Report](index=44&type=section&id=%E7%AC%AC%E5%8D%81%E4%B8%80%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) This section presents the company's financial statements, including balance sheets, income statements, and cash flow statements [Financial Statements](index=44&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's unaudited consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity, reflecting H1 2020 financial position, operating results, and cash flows [Consolidated Balance Sheet](index=44&type=section&id=1%E3%80%81%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2020, total assets were 3.63 billion Yuan, up 34.74% from year-start, and total liabilities were 2.22 billion Yuan, up 34.95%, primarily due to the acquisition of Zhongke Bio and subsidiary capital injections, with equity attributable to parent company increasing by 23.58% to 1.27 billion Yuan | Item | June 30, 2020 (Billion Yuan) | December 31, 2019 (Billion Yuan) | | :--- | :--- | :--- | | Total Assets | 3.63 | 2.69 | | Total Liabilities | 2.22 | 1.64 | | Total Equity Attributable to Parent Company Owners | 1.27 | 1.03 | [Consolidated Income Statement](index=50&type=section&id=3%E3%80%81%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In H1 2020, total operating revenue was 271 million Yuan, down 7.89%, with operating profit turning to a loss of -11.69 million Yuan, and net profit attributable to parent company significantly declining to -15.95 million Yuan from 1.52 million Yuan last year | Item | H1 2020 (Million Yuan) | H1 2019 (Million Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 270.78 | 293.96 | | Operating Profit | -11.69 | 8.67 | | Net Profit Attributable to Parent Company Owners | -15.95 | 1.52 | [Consolidated Cash Flow Statement](index=53&type=section&id=5%E3%80%81%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Operating cash flow significantly improved to 49.87 million Yuan from -51.83 million Yuan last year, while investing activities had a net outflow of 196 million Yuan for equity capital injections, and financing activities had a net inflow of 245 million Yuan from borrowings and capital contributions, increasing cash and cash equivalents to 129 million Yuan | Item | H1 2020 (Million Yuan) | H1 2019 (Million Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 49.87 | -51.83 | | Net Cash Flow from Investing Activities | -196.06 | -76.75 | | Net Cash Flow from Financing Activities | 245.39 | 63.98 | | Net Increase in Cash and Cash Equivalents | 98.93 | -64.67 | [Changes in Consolidation Scope](index=146&type=section&id=%E5%85%AB%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) The consolidation scope changed due to a non-same-control business combination, with subsidiary Hebei Daan acquiring 72% of Zhongke Bio for 41.76 million Yuan via non-monetary asset exchange, consolidating it as of June 30, 2020, and generating 324 million Yuan in goodwill - Zhongke Bio-Pharmaceutical Co., Ltd. was included in the consolidation scope due to a non-same-control business combination[633](index=633&type=chunk) | Merger Cost Item | Amount (Million Yuan) | | :--- | :--- | | Fair Value of Non-Cash Assets | 41.76 | | Less: Fair Value Share of Identifiable Net Assets Acquired | -282.03 | | **Goodwill** | **323.79** | [Other Significant Matters](index=158&type=section&id=%E5%8D%81%E4%BA%94%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) The company segmented its operations into testing and diagnostics and blood products; in H1 2020, the testing segment generated 102 million Yuan in revenue with an operating loss of -29.93 million Yuan, while the blood products segment generated 169 million Yuan in revenue with an operating profit of 18.24 million Yuan, showing divergent performance | Item | Testing & Diagnostics Segment (Million Yuan) | Blood Products Segment (Million Yuan) | | :--- | :--- | :--- | | Operating Revenue | 101.82 | 168.93 | | Operating Profit | -29.93 | 18.24 | | Net Profit | -29.12 | 12.83 | | Total Assets (Billion Yuan) | 2.28 | 2.19 | | Total Liabilities (Billion Yuan) | 0.77 | 1.49 | [Catalogue of Reference Documents](index=166&type=section&id=%E7%AC%AC%E5%8D%81%E4%BA%8C%E8%8A%82%20%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E7%9B%AE%E5%BD%95) This section lists reference documents available for inspection, including signed report texts by legal representatives and financial officers, original copies of all publicly disclosed documents, and announcements from the reporting period [Reference Documents](index=166&type=section&id=%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6) This section lists reference documents available for inspection, including signed report texts by legal representatives and financial officers, original copies of all publicly disclosed documents, and announcements from the reporting period