Financial Performance - The company's revenue increased by approximately 8.0% to about RMB 2,214.8 million for the year ended December 31, 2024[21]. - Profit attributable to equity holders of the parent decreased by approximately 41.5% to RMB 95.2 million[22]. - Pharmaceutical segment revenue grew by approximately 14.7% to RMB 1,624.3 million, accounting for 73.3% of total revenue[25]. - The retail pharmacy segment revenue declined by approximately 6.9% to RMB 590.5 million, representing 26.7% of total revenue[24]. - The annual gross profit increased by RMB 70.3 million or 5.8% to RMB 1,288.4 million for the year ended December 31, 2024, compared to RMB 1,218.1 million in 2023[28]. - The gross profit margin for the pharmaceutical segment decreased to 66.2% in 2024 from 69.0% in 2023, primarily due to changes in product mix[28]. - The gross profit for the retail pharmacy segment declined by 12.0% to RMB 212.3 million in 2024 from RMB 241.2 million in 2023, with a gross profit margin of 36.0%[29]. - Other income and gains decreased by approximately RMB 13.0 million to RMB 38.5 million in 2024, mainly due to reduced government subsidies[32]. - Selling and distribution expenses increased by approximately 11.3% to RMB 988.7 million in 2024, accounting for 44.6% of revenue[33]. - Research and development expenses rose by approximately 14.1% to RMB 57.0 million in 2024, attributed to increased external R&D costs[35]. - The profit attributable to equity holders of the parent decreased by 41.5% to RMB 95.2 million for the year ended December 31, 2024, with a net profit margin of 4.3%[38]. Strategic Focus and Development - The company plans to focus on the high-quality development opportunities in the biopharmaceutical industry in 2025[15]. - The company is expanding its product offerings, including traditional Chinese medicine and health products, to meet consumer demand[14]. - The modern Chinese medicine production park has been completed and is operational, showcasing new production capabilities[14]. - The company aims to enhance customer engagement through AI health self-testing devices and traditional Chinese medicine services[17]. - The company is committed to increasing market share and service quality to drive overall performance growth[18]. - The company is exploring new strategies to integrate health and wellness into daily life through herbal health products[17]. - The company aims to enhance its production capacity for traditional Chinese medicine to capture market share, anticipating continued growth in demand for its products[50]. Human Resources and Management - The total number of employees as of December 31, 2024, is 2,577, a decrease from 2,643 in 2023, with total compensation amounting to RMB 331.9 million, up from RMB 323.9 million in 2023[47]. - The company has adopted a competitive yet reasonable remuneration policy for directors to attract and retain qualified individuals[48]. - The total employee compensation includes salaries, retirement plan contributions, and other benefits, reflecting individual performance and industry standards[47]. - The company has no defined benefit plans as of the reporting period[49]. - The company appointed Mr. Lai Ying-sheng as Executive Director and CFO on March 24, 2022, who has been with the group since October 1, 2018[64]. - Mr. Cao Xiao-jun, with over 25 years of experience in the pharmaceutical industry, has been overseeing business development and sales activities since joining the group in March 2010[65]. - Ms. Jiang Li-xia, a non-executive director, has been with the group since February 24, 2009, and is responsible for overseeing business management and human resources[66]. - Mr. Wu Guan-yun, an independent non-executive director, has over 20 years of management experience and is the chairman of the audit committee[67]. - Mr. Huang Jin-hua, another independent non-executive director, has over 15 years of legal experience and has served on various committees within the company[69]. - Mr. Zhu Shang-heng, appointed as an independent non-executive director on April 10, 2025, has a background in both medicine and law, focusing on legal risk assessment for enterprises[70]. - Mr. Zhou Dai-han, with over 30 years of experience in the traditional Chinese medicine industry, has been involved in teaching and research at Guangzhou University of Chinese Medicine since 1976[74]. Corporate Governance - The board consists of four executive directors, one non-executive director, and three independent non-executive directors, ensuring over one-third independence[85]. - The company has applied the principles of the corporate governance code and complied with all applicable code provisions for the year ending December 31, 2024[84]. - The board is responsible for overseeing the company's strategy development and monitoring operational and financial performance[87]. - All directors participated in continuous professional development programs to enhance their knowledge and skills during the year ending December 31, 2024[89]. - The company has arranged training for all directors to ensure they contribute effectively to the board[89]. - The independent non-executive directors possess expertise in finance, law, and business, providing a necessary balance of skills and experience[85]. - The company has a risk management policy in place aligned with its strategic objectives[87]. - The board believes that its current structure ensures independence and objectivity, safeguarding the interests of shareholders[85]. - The company has a commitment to prudent management principles and corporate responsibility to enhance shareholder value in the long term[83]. - The board has authorized management to execute the group's strategies and daily operations[87]. - The roles of the Chairman and CEO are distinct, with Mr. Lai Chi Tin serving as Chairman and Mr. Lai Wing Fung as CEO as of December 31, 2024[94]. - All directors are appointed for a term of three years, with independent non-executive directors also serving a three-year term[95]. - The attendance rate for board meetings was 100% for all executive directors, with Mr. Lai Chi Tin and Mr. Lai Wing Fung attending all 4 regular board meetings[99]. - The Audit Committee, consisting of independent non-executive directors, reviewed the financial statements and related materials during the year[103]. - The Remuneration Committee held one meeting during the year to review and assess the performance of directors and senior management[104]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific areas of governance[102]. - The company ensures that all independent non-executive directors are independent and possess extensive professional knowledge and experience[97]. - The company provides sufficient resources for all committees to fulfill their responsibilities and seek independent professional advice when necessary[102]. - The company has received written confirmations of independence from all independent non-executive directors as per listing rules[97]. - The company’s senior management annual salary ranges were disclosed, indicating a structured compensation framework[106]. - The Nomination Committee was established on June 8, 2015, and consists of five members, including three independent non-executive directors, ensuring a majority of independent members[107]. - The company adopted a nomination policy on August 29, 2018, to enhance board diversity and governance standards, considering factors such as qualifications, skills, integrity, and experience[109]. - The company secretary, Ms. Ho, has confirmed participation in at least 15 hours of relevant professional training for the fiscal year ending December 31, 2024[114]. - The board emphasizes risk management and has established effective risk management and internal control systems to manage risks impacting business objectives[118]. - The Audit Committee serves as the highest level of risk management within the company, reporting directly to the board[122]. - The company has a structured process for identifying potential board candidates, including recommendations from board members and professional recruitment firms[115]. - The board is committed to maintaining high standards of corporate governance and regularly reviews its governance policies[113]. - The company ensures compliance with the Listing Rules and has adopted the standard code for securities trading by directors[117]. - The Nomination Committee held one meeting during the fiscal year ending December 31, 2024, with all members receiving the meeting records for review and approval[107]. - The company has established a comprehensive organizational structure for managing risks faced by the group[119]. - The company has established a comprehensive risk management procedure to identify, assess, and manage significant risks, ensuring the effectiveness of the risk management and internal control systems[125]. - In 2024, the risk management team will conduct risk identification and assessment across five dimensions: strategic, market, operational, compliance, and financial[134]. - The internal audit department will evaluate the effectiveness of the risk management and internal control systems, ensuring they are sufficient to control risks that may impact the company's objectives[136]. ESG and Sustainability - The report covers the period from January 1, 2024, to December 31, 2024, focusing on the group's sustainable development policies and performance[168]. - The group has committed to ensuring the accuracy and completeness of the report, with the board reviewing and approving it on March 26, 2025[163]. - The ESG work committee is responsible for coordinating ESG management and identifying ESG risks and opportunities, adhering to relevant guidelines from the Hong Kong Stock Exchange[174]. - The group has engaged Riskory Consultancy Limited as an independent ESG consultant to assist in writing the ESG report and providing carbon offset consulting services[178]. - Stakeholder engagement is crucial for understanding risks and opportunities, with various communication channels used to gather feedback, including interviews and site visits[179]. - The report follows the mandatory disclosure requirements of the ESG Reporting Guidelines set by the Hong Kong Stock Exchange[164]. - The group has established key performance indicators for environmental and social aspects to monitor and assess progress in fulfilling its responsibilities[167]. - The board is responsible for decision-making regarding ESG matters, including reviewing strategies and assessing the effectiveness of ESG management[171]. - The report emphasizes the importance of a balanced presentation of the group's performance in environmental, social, and governance areas[167]. - The group aims to enhance its ESG management system to drive sustainable development and further business growth[170]. - The company emphasizes the importance of effective resource usage, ecological protection, and compliance management as key sustainability issues[187]. - The company has established multiple internal systems and codes, including the "Integrity System" and "Code of Conduct for Directors and Management," to ensure compliance and ethical behavior[190]. - The company has not been aware of any corruption lawsuits or significant violations related to bribery, fraud, or money laundering during the reporting period[190]. - The company prioritizes product quality and safety, as well as the protection of intellectual property rights, as critical responsibilities[187]. - The company encourages employees to report any misconduct through various channels, including a reporting mailbox and hotline[193]. - The company has identified key ESG issues for the year, focusing on stakeholder expectations and regulatory trends[185]. - The company is committed to maintaining a transparent and compliant operational environment, adhering to relevant laws and regulations[190]. - The company has implemented a green procurement policy, emphasizing the use of environmentally friendly materials[187]. - The company aims to promote health products and services as part of its community contribution efforts[187]. - The company emphasizes product quality and safety, aiming to provide healthy products to the public[197]. - Several products received accolades, including "Guangdong Province Pharmaceutical Industry Brand Product" for Zhongzhi Ke Kuaipian and Yinhuang Granules[197]. - The core brand "Caojinghua" was included in the "Guangdong Province Key Trademark Protection Directory" and won the "Xipu Gold Award" in the pharmaceutical industry[197]. - The company adheres to various quality management regulations, including GMP and GSP, to ensure the safety and effectiveness of its products[198]. - The company has established a comprehensive quality management system across its subsidiaries to ensure product reliability[200].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 2,214,783,000, representing an 8.0% increase compared to RMB 2,049,812,000 in 2023[3]. - Gross profit for the same period was RMB 1,288,407,000, with a gross margin of 58.2%, down from 59.4% in the previous year[3][5]. - Profit attributable to equity holders of the company decreased by 41.5% to RMB 95,212,000, compared to RMB 162,775,000 in 2023[3][5]. - Basic and diluted earnings per share were RMB 0.11, a decline of 42.1% from RMB 0.19 in the prior year[3][5]. - The company reported a net profit of RMB 96,147,000 for the year, down from RMB 164,134,000 in 2023[5][7]. - The total dividend per share decreased by 44.4% to HKD 0.05 from HKD 0.09 in the previous year[3]. - The operating profit before tax was reported at RMB 146,897 thousand, after accounting for various expenses including sales and distribution costs of RMB 988,737 thousand and administrative expenses of RMB 105,745 thousand[32]. - The company reported a pre-tax profit of RMB 207,581 thousand for the year, showing a stable performance despite increased costs[33]. - The total income tax expense increased to RMB 50,750,000 from RMB 43,447,000, marking an increase of about 16%[42]. - The profit attributable to equity holders of the parent company for the year was RMB 95,212,000, down from RMB 162,775,000, indicating a decrease of around 41%[47]. Assets and Liabilities - Non-current assets increased to RMB 973,002,000 from RMB 918,514,000 year-on-year[8]. - Current assets rose to RMB 1,014,120,000, compared to RMB 874,121,000 in the previous year[8]. - Total liabilities increased to RMB 731,564,000 from RMB 608,608,000 in 2023[9]. - The company's total equity stood at RMB 1,121,542,000, up from RMB 1,053,333,000 in the previous year[9]. - The total value of inventory increased to RMB 345,352,000 in 2024 from RMB 330,017,000 in 2023, representing a growth of approximately 4%[55]. - Trade receivables rose significantly to RMB 324,698,000 in 2024, up from RMB 195,894,000 in 2023, marking an increase of about 65.5%[56]. - The net trade receivables after impairment increased to RMB 316,737,000 in 2024, compared to RMB 192,033,000 in 2023, reflecting a growth of approximately 64.9%[58]. - The impairment loss for trade receivables increased to RMB 7,961,000 in 2024 from RMB 3,861,000 in 2023, indicating a rise of about 106%[58]. - Trade payables and notes payable totaled RMB 295.96 million, up from RMB 190.97 million in the previous year[62]. - The group's debt ratio increased to 7.5% as of December 31, 2024, compared to 4.8% in 2023, with total equity attributable to shareholders amounting to RMB 1,121.5 million[82]. Segment Performance - Total revenue for the year ending December 31, 2024, reached RMB 2,923,021 thousand, with contributions from the pharmaceutical segment at RMB 2,332,527 thousand and the retail pharmacy segment at RMB 590,494 thousand[32]. - The pharmaceutical segment generated external customer revenue of RMB 1,624,289 thousand, while inter-segment sales amounted to RMB 708,238 thousand[32]. - The pharmaceutical segment's revenue grew by approximately 14.7% to RMB 1,624.3 million, accounting for 73.3% of total revenue[70]. - The operating chain pharmacy segment's revenue declined by 6.9% to approximately RMB 590.5 million, representing 26.7% of total revenue[71]. - The gross profit of the retail pharmacy segment decreased by approximately 12.0%, amounting to RMB 212.3 million for the year ending December 31, 2024, compared to RMB 241.2 million in 2023[73]. Research and Development - Research and development costs increased to RMB 57,011 thousand in 2024 from RMB 49,982 thousand in 2023, reflecting a growth of approximately 14.0%[38]. - Research and development expenses increased by approximately 14.1% to RMB 57.0 million for the year ending December 31, 2024, compared to RMB 50.0 million in 2023, mainly due to increased collaborative R&D costs[77]. Compliance and Reporting Standards - The financial statements are prepared in accordance with International Financial Reporting Standards and Hong Kong Companies Ordinance, using historical cost convention except for certain financial assets measured at fair value[11]. - The company has adopted revised International Financial Reporting Standards for the first time this year, including IFRS 16 related to lease liabilities and IAS 1 regarding the classification of liabilities[15]. - The group has reassessed the debt terms and conditions for 2023 and 2024, concluding that the classification of liabilities as current or non-current remains unchanged, indicating no impact on the financial position[16]. - The group is currently analyzing the new regulations and assessing the impact of IFRS 18 on the presentation and disclosure of its financial statements[19]. - The group has not reported any significant changes in financial performance due to the early application of the amendments to international financial reporting standards[25]. Operational Stability - The company is primarily engaged in the manufacturing and sales of pharmaceutical products in China, with no significant changes in major activities during the year[10]. - The company has not reported any significant changes in its major activities during the year, indicating stability in its operations[10]. - The group operates 403 self-operated chain pharmacies in Guangdong Province, down from 428 in the previous year[71]. - The company anticipates a steady increase in demand for traditional Chinese medicine, prompting plans to expand production capacity at the new factory[91]. Shareholder and Corporate Governance - The proposed final dividend per ordinary share is 5 HKD cents, up from 3 HKD cents in the previous year, reflecting a growth of approximately 67%[43]. - The board has adopted a competitive remuneration policy for directors to attract and retain qualified individuals[88]. - The audit committee, established on June 8, 2015, reviews financial statements and oversees risk management and internal control systems[99]. - The company is committed to enhancing its existing business and will consider potential investment opportunities that may benefit shareholders[96].

2024 中期報告 中智藥業控股有限公司 Zhongzhi Pharmaceutical Holdings Limited 草晶華破壁草本 更好吸收 服用便捷 （ 於開曼群島註册成立之有限公司 ）股份代號：3737 目 錄 | --- | |-------| | | | | | 2 | | 4 | | 6 | 中期簡明綜合財務資料審閱報告 13 14 綜合損益表 綜合全面收益表 15 16 18 綜合財務狀況表 綜合權益變動表 綜合現金流量表 20 中期簡明綜合財務資料附註 23 其他資料 44 二零二四年中期報告2 公司資料 | --- | |--------------------| | | | 董事會 | | 執行董事 | | 賴智填先生（主席） | | 賴穎豐先生 | | 賴穎盛先生 | | 曹曉俊先生 | | 非執行董事 | | 江麗霞女士 | | 彭志雲先生 | 獨立非執行董事 | --- | |-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | 董事委員會 審核委員會 吳冠雲先生（主席） 黃錦華先生 周岱翰先生 薪酬委 ...

Financial Performance - The group's revenue for the six months ended June 30, 2024, was approximately RMB 1,088.4 million, a decrease of 0.5% compared to RMB 1,094.3 million for the same period in 2023[1]. - Gross profit for the same period was approximately RMB 627.0 million, down 7.1% from RMB 675.0 million, with a gross margin decrease of 4.1 percentage points to about 57.6%[1]. - Profit attributable to equity holders of the parent was approximately RMB 83.4 million, representing a decrease of about 38.2% compared to RMB 134.9 million for the same period in 2023[1]. - Basic earnings per share for the six months ended June 30, 2024, were approximately RMB 0.099, down 37.7% from RMB 0.159 for the same period in 2023[1]. - The total comprehensive income for the period was RMB 84.0 million, down from RMB 136.3 million in the previous year[5]. - The group's operating profit before tax for the six months ended June 30, 2024, was RMB 105,019, compared to RMB 105,019 in the previous year, indicating stability in profitability[19]. - The group reported total other income of RMB 18,074 for the six months ended June 30, 2024, down from RMB 25,152 in 2023, representing a decrease of approximately 28%[21]. - The total income tax expense for the six months ended June 30, 2024, was RMB 20,767,000, a decrease of 34.5% compared to RMB 31,667,000 for the same period in 2023[24]. - The current income tax for mainland China was RMB 21,396,000 for the six months ended June 30, 2024, down from RMB 40,983,000 in the previous year, representing a decline of 47.8%[24]. - Profit attributable to equity holders of the parent company decreased by 38.2% to RMB 83.4 million for the six months ended June 30, 2024, compared to RMB 134.9 million for the same period in 2023, with a net profit margin of 7.7%[70]. Dividends - The board of directors recommended not to declare any interim dividend for the six months ended June 30, 2024, compared to an interim dividend of HKD 0.06 per share for the same period in 2023[1]. - The company did not declare an interim dividend after June 30, 2024, compared to RMB 51,816,000 for the six months ended June 30, 2023[25]. - The company declared a final dividend of HKD 0.06 per ordinary share and a special dividend of HKD 0.03 per ordinary share for the previous financial year, totaling approximately RMB 69,503,000 after adjustments[25]. Assets and Liabilities - Non-current assets as of June 30, 2024, totaled RMB 984.8 million, an increase from RMB 918.5 million as of December 31, 2023[7]. - Current assets increased to RMB 976.9 million from RMB 874.1 million as of December 31, 2023, with inventories rising to RMB 344.4 million[7]. - Current liabilities rose to RMB 700.2 million from RMB 608.6 million as of December 31, 2023[7]. - Total equity as of June 30, 2024, was RMB 1,111.6 million, compared to RMB 1,053.3 million as of December 31, 2023[9]. - The carrying amount of properties, plant, and equipment as of June 30, 2024, was RMB 578,389,000, an increase from RMB 498,367,000 as of December 31, 2023[29]. - The company's cash and cash equivalents totaled RMB 162,908,000 as of June 30, 2024, slightly down from RMB 164,368,000 on December 31, 2023, showing a decrease of about 0.9%[37]. - Trade payables as of June 30, 2024, were RMB 148,825,000, an increase from RMB 140,766,000 as of December 31, 2023, representing a growth of approximately 5.0%[39]. - The company's net trade receivables amounted to RMB 294,512,000, a significant increase from RMB 192,033,000 as of December 31, 2023, representing a growth of approximately 53.4%[34]. - The company's inventory value as of June 30, 2024, was RMB 344,374,000, compared to RMB 330,017,000 on December 31, 2023, indicating a rise of about 4.4%[33]. Segment Performance - The pharmaceutical segment generated revenue of RMB 778.7 million for the six months ended June 30, 2024, an increase of 0.8% compared to RMB 772.6 million for the same period in 2023, accounting for 71.5% of total revenue[60]. - The retail pharmacy segment reported a revenue decrease of 3.7% to RMB 309.7 million for the six months ended June 30, 2024, down from RMB 321.7 million in the same period in 2023, representing 28.5% of total revenue[60]. Expenses - The cost of goods sold for the six months ended June 30, 2024, was RMB 461,380, an increase from RMB 419,365 in 2023, reflecting a rise of approximately 10%[22]. - Research and development expenses for the six months ended June 30, 2024, amounted to RMB 22,886, up from RMB 20,551 in 2023, marking an increase of about 11.3%[22]. - The total administrative expenses for the six months ended June 30, 2024, were RMB 52,645, compared to RMB 52,645 in the previous year, showing no change[19]. - Selling and distribution expenses increased by approximately 0.8% to RMB 448.5 million for the six months ended June 30, 2024, compared to RMB 445.0 million for the same period in 2023, representing 41.2% of revenue[67]. - The group’s total employee benefits expenses, including director remuneration, were RMB 164,280 for the six months ended June 30, 2024, compared to RMB 141,411 in 2023, representing an increase of approximately 16%[22]. Governance and Compliance - The company confirms adherence to corporate governance standards and has established a written terms of reference for its audit committee[84]. - The financial data for the six months ending June 30, 2024, has been prepared in accordance with the Hong Kong Stock Exchange's listing rules and International Accounting Standards[12]. - The company has adopted accounting policies consistent with those used for the annual consolidated financial statements for the year ending December 31, 2023[13]. Future Outlook - The company anticipates that the pharmaceutical industry will experience healthy development driven by the increasing healthcare needs of the population, despite short-term pressures from rising prices of certain Chinese medicinal materials[56]. - The company is focused on implementing a health-first development strategy to meet the growing medical and healthcare demands of the public[56]. - The company is accelerating the development of new products in the wall-breaking herbal tea category and entering new sales channels[57]. - The company has established an international standard for wall-breaking traditional Chinese medicine products, which supports the standardization and innovation of these products in the international market[57].

除本報告所披露者外，本公司的組織章程文件於截至二零二三年十二月三十一日止年度概無任何重大變動。 股東通訊政策 目的 本公司認知向其股東（「股東」）提供現時及相關信息的重要性。本股東通訊政策（「本政策」）旨在制定條文，確保股東及 潛在投資者均可平等並適時取得公正及易於理解的本公司信息，使股東可在知情情況下行使權利並允許股東及潛在投 資者能積極參與本公司事務。 二零二三年年報 34 企業管治報告 總體政策 董事會將持續與股東保持溝通，並將定期檢討本政策以確保其成效。 信息將透過本公司定期披露的財務報告（中期及年度報告）、可能召開的股東週年大會及其他股東大會以及提交至聯交 所的所有可得披露及聯交所上其他企業刊物以及聯交所網站(www.hkex.com.hk)及本公司網站(http://www.zeus.cn)上的 企業通訊與股東及持份者保持溝通。 應持續確保向股東有效並及時地傳播信息。如有任何問題、要求及意見，可郵寄至香港新界荃灣海盛路9號有線電視大 樓15樓10B室或電郵至zeuschina@126.com或透過本公司股份過戶登記處向本公司提交。 冉強先生，50歲，二零一六年三月加入中山市中智藥業集團有限公司，現 ...

Financial Performance - The company's revenue for 2023 was RMB 44,840,000, compared to RMB 25,363,000 in 2022, representing a significant increase of 76.8%[5] - The basic earnings per share for 2023 was RMB 162,775,000, up from RMB 106,387,000 in 2022, indicating a growth of 53.0%[13] - The pre-tax profit for the group was RMB 831,669,000, up from RMB 753,640,000 in the previous year, reflecting an increase of 10.3%[26] - Profit attributable to the owners of the parent company rose by approximately 53.0% to RMB 162.8 million[40] - The net profit attributable to the parent company increased by 53.0% to RMB 162.8 million, with a net profit margin of 7.9% compared to 5.8% in the previous year[68] - The company reported a net profit of RMB 164,134 thousand for the year, up from RMB 106,915 thousand in the previous year[123] Income and Expenses - The total income tax expense for 2023 was RMB 43,447,000, compared to RMB 23,736,000 in 2022, reflecting an increase of 83.2%[7] - Selling and distribution expenses increased by approximately 9.7% to RMB 888.2 million, maintaining a stable ratio of approximately 43.3% of revenue[64] - Administrative expenses rose by approximately 1.8% to RMB 106.7 million, mainly due to depreciation expenses related to the retail pharmacy headquarters[66] - Research and development costs increased to RMB 49,982,000 from RMB 46,350,000, representing a growth of 5.6%[26] - Research and development expenses increased by approximately 7.8% to RMB 50.0 million, driven by direct investments and collaborative R&D costs[67] Dividends - The company declared an interim dividend of 6 HKD cents per share for 2023, compared to 0 in 2022, marking a return to dividend payments[9] - The proposed final dividend for the year ending December 31, 2023, is HKD 0.03 per share, down from HKD 0.06 in 2022, with a special dividend of zero, down from HKD 0.03 in 2022[101] - The company declared a total dividend of HKD 0.09 per share, unchanged from the previous year, despite a reduction in the final dividend[115] Assets and Liabilities - The total assets as of December 31, 2023, amounted to RMB 2,102,148 thousand, compared to RMB 1,875,257 thousand in 2022[129] - The total liabilities decreased to RMB 1,048,815 thousand from RMB 1,069,308 thousand in the previous year, indicating improved financial stability[129] - The total lease liabilities as of December 31, 2023, were RMB 124,845,000, a decrease from RMB 134,829,000 in 2022, showing a reduction of 7.3%[17] - Trade payables amounted to RMB 140,766 thousand, down from RMB 149,226 thousand in the previous year[37] - Trade receivables were RMB 195,894 thousand, with a net amount of RMB 192,033 thousand after impairment[52] - Inventory value increased to RMB 330,017 thousand from RMB 322,901 thousand year-on-year[51] Revenue Segmentation - Revenue from the pharmaceutical segment grew by 25.3% to RMB 1,415.7 million, accounting for 69.1% of total revenue[54] - Revenue from the retail pharmacy segment decreased by 8.9% to RMB 634.1 million, representing 30.9% of total revenue[55] - For the fiscal year ending December 31, 2023, the total revenue from external customers for the pharmaceutical segment was RMB 1,415,663,000, while the retail pharmacy segment generated RMB 634,149,000, leading to a total revenue of RMB 2,746,036,000[165] Operational Developments - The company plans to accelerate the construction of a new pharmaceutical plant and ensure a smooth transition of production capacity between old and new facilities[22] - The company aims to enhance its core product development and introduce new products to support growth over the next 30 years[21] - The group operates 428 self-operated retail pharmacies in Guangdong Province as of December 31, 2023[55] - The group aims to enhance the influence of traditional Chinese medicine products and accelerate new retail development[44] Financial Reporting and Compliance - Financial statements are prepared in accordance with International Financial Reporting Standards, ensuring compliance with relevant regulations[137] - The group has adopted new and revised International Financial Reporting Standards this year, with no significant impact on the financial statements[146] - The audit committee has reviewed the group's accounting principles and financial statements during the year[92] Employee and Compensation - As of December 31, 2023, the group employed 2,643 employees, a decrease from 2,883 employees in 2022, with total compensation amounting to RMB 323.9 million, down from RMB 332.4 million in 2022[79] - The group has adopted a competitive remuneration policy for directors to attract and retain qualified individuals to achieve strategic goals[82] Future Outlook - The group anticipates continued growth in demand for traditional Chinese medicine, driven by increasing public health awareness post-COVID-19[84] - The company aims to strengthen its traditional Chinese medicine tablet business by building a complete industry chain from seed cultivation to processing[107]

Financial Performance - The group reported a revenue of RMB 1,094,328,000 for the six months ended June 30, 2023, compared to RMB 846,397,000 for the same period in 2022, representing a growth of approximately 29.3%[14]. - The pre-tax profit for the group was RMB 167,819,000 for the six months ended June 30, 2023[8]. - The total revenue for the six months ended June 30, 2023, was approximately RMB 1,094.3 million, representing a 29.3% increase compared to RMB 846.4 million in the same period last year[77]. - The group recorded a profit attributable to equity holders of approximately RMB 134.9 million, a 75.1% increase from RMB 77.0 million in the same period of 2022[104]. - Basic earnings per share were RMB 0.159 for the six months ended June 30, 2023, an increase of approximately 75.1% from RMB 0.091 in the same period of 2022[86][92]. - The company reported a profit of RMB 136,152,000 for the six months ended June 30, 2023, representing an increase of 75.4% compared to RMB 77,539,000 for the same period in 2022[183]. - Total comprehensive income for the period was RMB 136,332,000, up from RMB 76,620,000 in the previous year, marking a growth of 78.1%[183]. Revenue Breakdown - Revenue from external customers amounted to RMB 846,397,000, with RMB 536,773,000 from the pharmaceutical segment and RMB 309,624,000 from the retail pharmacy chain segment[9]. - Revenue from the pharmaceutical segment increased by approximately 43.9% to RMB 772.6 million, accounting for 70.6% of total revenue, up from 63.4% in the same period last year[114]. - Revenue from the retail pharmacy segment increased by 3.9% to RMB 321.7 million, accounting for 29.4% of total revenue, down from 36.6% in the same period last year[116]. Profitability Metrics - The gross profit for the pharmaceutical segment increased by 47.2% to RMB 541.8 million, with a gross profit margin of 70.1%, up from 68.6% in the previous year[95]. - The group's gross profit was RMB 675.0 million, an increase of 33.6% from RMB 505.2 million in the same period last year[117]. - The net profit margin for the period was 12.3%, up from 9.2% in the same period last year[121]. Expenses and Liabilities - Selling and distribution expenses were approximately RMB 445.0 million, an increase of about 27.1% from RMB 350.0 million in the same period last year, representing 40.7% of revenue[120]. - The group’s total liabilities decreased from RMB 409,093,000 as of December 31, 2022, to RMB 279,949,000 as of June 30, 2023, indicating a reduction of approximately 31.5%[38]. - Administrative expenses increased by approximately 9.2% to RMB 53.7 million, primarily due to increased depreciation from the completion of the Yunfu factory project[145]. Assets and Investments - The group’s total assets less current liabilities amounted to RMB 1,195,354,000 as of June 30, 2023, compared to RMB 1,144,006,000 at the end of 2022[186]. - The total non-current assets increased to RMB 845,370,000 in the first half of 2023 from RMB 784,337,000 in the previous year, reflecting a growth of 7.8%[197]. - The group’s strategic investments in equity investments increased to RMB 39,668,000 as of June 30, 2023, compared to RMB 10,676,000 as of December 31, 2022[53]. Cash Flow and Financing - The company had cash and bank balances totaling approximately RMB 241.8 million as of June 30, 2023, compared to RMB 359.7 million as of December 31, 2022[146]. - The company has unutilized bank financing of RMB 119.0 million as of June 30, 2023, unchanged from December 31, 2022[147]. - Operating cash flow for the first half of 2023 was RMB 71,517,000, down 31.5% from RMB 104,223,000 in the first half of 2022[194]. Strategic Initiatives - The group plans to implement new strategies to enhance market expansion and product development, although specific details were not disclosed in the provided content[42]. - The company plans to expand its production capacity for traditional Chinese medicine to capture market share as demand continues to grow[133]. - The group has actively expanded its online business and franchise stores in response to decreased foot traffic post-pandemic[88]. Operational Developments - The group has expanded its chain of pharmacies to 433 self-operated stores in Guangdong Province as of June 30, 2023, up from 397 stores a year earlier[94]. - The group is constructing a new production base to meet the capacity expansion needs of its subsidiary, with civil engineering expected to be completed by the end of the year[87].

Share Incentive and Option Plans - The company has a total of 2,177,000 shares potentially to be issued under the share incentive plan, representing 0.25% of the weighted average number of shares issued during the year[5]. - As of December 31, 2022, the remaining term of the share incentive plan is four years[7]. - The company has not issued or allocated any new shares to the trustee under the share incentive plan as of the announcement date[8]. - The maximum number of options that can be granted to any participant under the share option plan is capped at 1% of the total issued shares, unless otherwise approved by shareholders[9]. - The total number of options available for grant under the share option plan as of January 1, 2022, and December 31, 2022, is 80,000,000[25]. - The share incentive plan is designed to recognize and encourage contributions from eligible participants to the growth and development of the group[18]. - The company has no intention to issue and allocate new shares to the trustee in the future[8]. - The share option plan is valid for a period of ten years from the date of adoption, subject to early termination by the board[21]. - The company has not issued any reward shares under the share incentive plan prior to December 31, 2022[15]. - The total number of securities available for issuance under the share option plan is 80,000,000 shares, accounting for approximately 9.26% of the company's issued shares[37]. - The share option plan has a validity period of ten years from the adoption date, with a remaining effective period of three years as of December 31, 2022[39]. - Under the share reward plan, the cumulative rewards granted to participants, including share options, must not exceed 1% of the company's issued shares within a 12-month period[43]. - The vesting period for share options granted under the share option plan is not less than 12 months[38]. - The share reward plan and share option plan are designed to incentivize employees, directors, and other contributors to the company's growth and development[36]. - No share options have been granted, exercised, canceled, or lapsed under the share option plan since the company's listing[35]. - The company will provide additional information regarding the share option plan and share reward plan in its annual report as per the listing rules[30]. - The share reward plan aims to align the interests of participants with the company's performance and growth[41]. - The share option plan includes participants such as employees, directors, suppliers, and other contributors to the company's development[36]. Financial Performance and Guidance - The company has not disclosed any specific financial performance metrics or future guidance in the provided content[40].

– 2 – 將不會於其後期間重新分類至損益之 其 他 全 面 收 益： 換算海外業務的匯兌差額 4,401 — 期內全面總收益 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Zhongzhi Pharmaceutical Holdings Limited 中智藥業控股有限公司 （於 開 曼 群 島 註 冊 成 立 之 有 限 公 司） （股份代號：3737） 截至二零二三年六月三十日止六個月之 中期業績 | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Financial Performance - The group's annual gross profit was RMB 1,072.3 million, an increase of RMB 10.9 million or 1.0% compared to RMB 1,061.4 million for the year ended December 31, 2021[1]. - Profit attributable to equity holders of the parent company increased by 104.1% to RMB 106.4 million for the year ended December 31, 2022, with a net profit margin of 5.8% compared to 3.0% in the previous year[5]. - The group's revenue increased by approximately 4.5% to about RMB 1,825.9 million for the year ended December 31, 2022[93]. - Revenue from pharmaceutical operations grew by approximately 7.3% to RMB 1,129.9 million, accounting for 61.9% of total revenue[71]. - The operation of chain pharmacies contributed RMB 696.0 million in revenue, showing a slight increase of 0.4% year-on-year[95]. - The pharmaceutical segment generated revenue of RMB 1,129.9 million, reflecting a growth of 7.3% compared to the previous year[95]. Cost and Expenses - Administrative expenses were approximately RMB 104.7 million, an increase of about 1.8% from RMB 102.9 million in the previous year, primarily due to increased depreciation and office expenses[3]. - Financing costs for the year ended December 31, 2022, were RMB 6.6 million, down from RMB 7.1 million in the previous year, mainly due to a reduction in bank borrowings[4]. - Selling and distribution expenses were approximately RMB 809.8 million for the year ended December 31, 2022, a decrease of about 2.3% from RMB 829.2 million in 2021, with the ratio to revenue decreasing to approximately 44.4% from 47.5% in 2021[134]. - Research and development expenses increased by approximately 5.7% to RMB 46.4 million for the year ended December 31, 2022, compared to RMB 43.8 million in 2021, primarily due to increased direct R&D investments[135]. - Income tax expenses for the year ended December 31, 2022, were RMB 23.7 million, up from RMB 9.4 million in 2021, mainly due to an increase in profit before tax[136]. Assets and Liabilities - As of December 31, 2022, the net current assets of the group were approximately RMB 359.7 million, with cash and bank balances increasing to RMB 381.0 million[82]. - The group's debt ratio decreased to 3.6% as of December 31, 2022, down from 6.4% the previous year[107]. - As of December 31, 2022, the equity attributable to shareholders was approximately RMB 1,005.9 million, compared to RMB 901.2 million as of December 31, 2021[138]. - The company has no contingent liabilities as of December 31, 2022, consistent with the previous year[117]. - As of December 31, 2022, the company's distributable reserves amounted to RMB 140.3 million, which includes share premium and retained earnings, indicating the ability to meet upcoming debt obligations[198]. Corporate Governance - The company has adhered to the principles outlined in the corporate governance code and complied with all applicable code provisions as of December 31, 2022[29]. - The board of directors is responsible for leading and monitoring the company, overseeing business strategies and performance[30]. - The audit committee was established on June 8, 2015, and its scope of authority includes reviewing financial statements and monitoring the group's risk management and internal control systems[37]. - The board consists of four executive directors, two non-executive directors, and three independent non-executive directors, with independent directors accounting for over one-third of the board[45]. - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee to oversee specific areas of the company's affairs[54]. - The company received written confirmations regarding the independence of all independent non-executive directors during the reporting period[51]. - The board monitors the company's strategic development and sets appropriate risk management policies in line with the group's strategic objectives[46]. - The company has a continuous professional development program for its directors, ensuring they remain updated on relevant industry practices[32]. - The audit committee comprises three members, all of whom are independent non-executive directors, ensuring unbiased oversight of financial reporting[37]. - The company has implemented a comprehensive management structure to ensure effective governance and operational success[30]. Operational Developments - The number of self-operated chain pharmacies in Guangdong Province increased to 429 from 398 in the previous year[72]. - The group plans to expand into new retail businesses and enhance online sales following regulatory changes[68]. - The group aims to strengthen the quality assurance system for traditional Chinese medicine throughout the entire supply chain[67]. - The group will continue to design and construct modern factories to establish new growth points for the future[67]. - The company has completed the land bidding for a new factory in Zhongshan, Guangdong Province, to expand production capacity in response to rising product demand[116]. - The new factory in Guangdong is intended for the production of traditional Chinese medicine products to meet increasing market demand[116]. - The company has adjusted its operational strategy to control expenses and expand business in a challenging environment[93]. Supplier and Customer Relations - The company emphasizes strong collaboration with suppliers to effectively meet customer demands, ensuring a transparent and fair procurement process[190]. - The average business relationship with major suppliers exceeds six years, covering various regions in Northern, Central, and Southern China[191]. - Sales to the top five customers accounted for less than 30% of total sales during the reporting period, suggesting a diversified customer base[199]. - The average credit term for major wholesale customers is generally no more than three months, while new customers are typically required to make advance payments[192]. Future Outlook - The group will consider any potential investment opportunities that may benefit shareholders[15]. - The company has no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[146]. - There are no significant future plans for major investments or capital assets disclosed in the report[147]. - The company has not utilized any forward contracts or other methods to hedge foreign currency risks as of 2022, but will review and adjust its hedging and financing strategies based on currency fluctuations[142].