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Companycode:603939Companyabbreviation:YifengPharmacy
YifengPharmacyChainCo.,Ltd.
2024AnnualReport
ThisreportispreparedinbothChineseandEnglishandispublishedelectronically.Ifthereisany
inconsistencybetweenthetwoversions,theChineseversionshallprevail.
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ImportantNotesI.TheBoardofDirectors,BoardofSupervisors,directors,supervisorsandseniormanagementoftheCompanyherebyguaranteethatthecontentsareauthentic,accurate,andcomplete,withoutfalserecords,misleadingrepresentationsormaterialomissionsintheAnnualReport,andshalltakeallthejointandseverallegalliabilities.II.AllthedirectorshaveattendedthemeetingoftheBoardofDirectors.III.Pan-ChinaCertifiedPublicAccountantshasissuedastandardunqualifiedauditreportfortheCompany.IV.GaoYi,theCompany’sresponsibleperson,WangYonghui,responsiblepersoninchargeofaccountingwork,andGuanChangfu,theaccountingfirm’sresponsibleperson(accountingsuperintendent)herebydeclareandwarrantthatthefinancialreportintheAnnualReportisauthentic,accurate,andcomplete.V.Theplanofprofitdistributionortheconversionofcapitalreservesintosharecapitalforthe
ReportingPeriodhasbeenapprovedbytheBoardofDirectorsBasedontheauditconductedbyPan-ChinaCertifiedPublicAccountants(specialgeneralpartnership),asofDecember31,2024,theundistributedprofitsintheparentcompany’sfinancialstatementsamountedtoCN?854,914,834.22.
In2024,theCompanyachievedanetprofitattributabletotheparentcompanyamountingtoCN?1,528,576,669.36.Afteraddingtheundistributedprofitfromthebeginningof2024,whichwasCN?4,774,244,419.42,anddeductingthestatutorysurplusreserveofCN?127,737,417.19extractedattheendoftheyear,alongwithadividendpayoutofCN?505,289,898.50for2023,andadividendpayoutof303,114,161.25formid2024,theprofitavailablefordistributiontoshareholderstotaledCN?5,366,679,
611.84.
TheCompanyproposestodistributeacashdividendofCN?0.40(taxincluded)persharetoallshareholders.AsofMarch31,2025,theCompany’stotalsharecapitalstoodat1,212,416,794shares,resultinginaproposedtotalcashdividenddistributionofCN?484,966,717.60(taxincluded).ShouldtheCompany’stotalsharecapitalchangebetweenthedisclosuredateofthisprofitdistributionplanandtheequityregistrationdateforitsimplementation,duetofactorssuchasconvertiblebondconversionorrepurchaseandcancellationofsharesgrantedunderequityincentives,theCompanyintendstomaintaintheper-sharedistributionratiowhileadjustingthetotaldistributionamountaccordingly.Anysubsequentchangesintotalsharecapitalwillbeannouncedseparatelywithspecificadjustmentdetails.TheprofitdistributionplanaboveissubjecttoapprovalbytheCompany’sshareholdersatthegeneralmeeting
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beforeimplementation.VI.Riskstatementonforward-lookingstatements"√Applicable""□Notapplicable"Theforward-lookingstatementssuchasfutureplansanddevelopmentstrategiesintheAnnualReportdonotconstituteasubstantivecommitmentoftheCompanytoinvestors.Investorsshouldthereforemakerationalinvestmentbasedonanawarenessofriskfactors.VII.Aretherecasesofnon-operationalfundoccupancybythecontrollingshareholderandother
relatedpartiesNoVIII.Havetherebeenanybreachesofestablisheddecision-makingproceduresinproviding
guaranteestoexternalpartiesNoIX.Hastherebeenasituationwheremorethanhalfofthedirectorscannotguaranteethatthe
AnnualReportdisclosedbytheCompanyisauthentic,accurate,andcompleteNoX.Significantriskwarnings
DuringtheReportingPeriod,nosignificantriskshadasubstantialimpactontheCompany’sproductionandoperationactivities.TheCompanyhasextensivelyelaboratedonpotentialrisksinthisreport.Formoredetails,pleaserefertoSubsection"PotentialRisks"underSectionIII“ManagementDiscussionandAnalysis”.XI.Others"□Applicable""√Notapplicable"
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Contents
SectionI.Paraphrase.............................................................................................................................5
SectionII.CompanyProfileandMainFinancialIndicators.................................................................6
SectionIII.ManagementDiscussionandAnalysis...............................................................................11
SectionIV.CorporateGovernance........................................................................................................45
SectionV.EnvironmentalandSocialResponsibility..........................................................................72
SectionVI.Importantmatters................................................................................................................74
SectionVII.ChangesinSharesandShareholders................................................................................115
SectionVIII.OverviewofPreferredShare............................................................................................124
SectionIX.OverviewofBonds...........................................................................................................125
SectionX.FinancialStatements.........................................................................................................128
| ContentsofReferenceFile | AccountingstatementswiththesignaturesandsealsoftheCompany’sresponsibleperson,theresponsiblepersoninchargeofaccountingwork,andtheresponsiblepersonoftheaccountingfirm(accountingsuperintendent) |
| TheoriginalcopiesofalldocumentsandannouncementspubliclydisclosedbytheCompanyinthenewspapersdesignatedbytheChinaSecuritiesRegulatoryCommission(CSRC)duringtheReportingPeriod,includingShanghaiSecuritiesNews,ChinaSecuritiesJournal,SecuritiesTimes,andSecuritiesDaily |
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SectionI.Paraphrase
I.ParaphraseInthisreport,unlessstatedotherwise,thefollowingtermsshallbeinterpretedasfollows:
| Commontermsandtheirdefinitions | ||
| TheCompany,Company,andYifengPharmacy | Means | YifengPharmacyChainCo.,Ltd. |
| Houxin | Means | ControllingshareholderofNingboMeishanFreeTradePortAreaHouxinVentureCapitalPartnership(LimitedPartnership) |
| Yizhifeng | Means | NingboMeishanFreeTradePortAreaYizhifengEnterpriseManagementPartnership(LimitedPartnership),ashareholderoftheCompany |
| Yirentang | Means | NingboMeishanFreeTradePortAreaYirentangEnterpriseManagementPartnership(LimitedPartnership),ashareholderoftheCompany |
| HunanYifengPharmaceutical | Means | HunanYifengPharmaceuticalCo.,Ltd. |
| HubeiYifengPharmaceutical | Means | HubeiYifengPharmaceuticalCo.,Ltd. |
| ShijiazhuangXinxing | Means | ShijiazhuangXinxingPharmacyChainCo.,Ltd. |
| YifengGuangshengtang | Means | HubeiYifengGuangshengtangPharmaceuticalChainCo.,Ltd. |
| WuxiKyushu | Means | WuxiKyushuPharmaceuticalChainCo.,Ltd. |
| JiangsuYifeng | Means | JiangsuYifengPharmacyChainCo.,Ltd. |
| HubeiYifeng | Means | HubeiYifengPharmacyChainCo.,Ltd. |
| YiduYifeng | Means | YiduYifengPharmacyChainCo.,Ltd. |
| CSRC | Means | ChinaSecuritiesRegulatoryCommission |
| CompanyLaw | Means | CompanyLawofthePeople'sRepublicofChina |
| SecuritiesLaw | Means | SecuritiesLawofthePeople'sRepublicofChina |
| O2O | Means | OnlineToOffline(O2O)integratesofflinebusinessopportunitieswiththeInternet,thuseffectivelymakingtheInternetaplatformforofflinetransactions. |
| B2C | Means | BusinessToCustomer(B2C)isane-commercemodelinwhichenterprisesdirectlyselltheirproductsorservicestoconsumers.Thistypeofe-commercetypicallyreliesonnetworkretail. |
| CRM | Means | CustomerRelationshipManagement(CRM)isasystemthatenterprisesusetomanagerelationshipwiththeircustomers. |
| SAP | Means | SystemsApplicationsandProductsinDataProcessing(SAP)isasoftwareusedtomanagesolutions. |
| AGV | Means | AutomatedGuidedVehicle(AGV)referstoavehicleusedformaterialhandlingandtransportationwithautomatedguide. |
| GSP | Means | GoodSupplyPractice |
| ESG | Means | Environmental,Social,andGovernance |
| MSCI | Means | MorganStanleyCapitalInternational,aleadingproviderofESGratings |
| DuringtheReportingPeriodandwithintheReportingperiod | Means | January1,2024toDecember31,2024 |
| CN?,CN?10,000 | Means | ChineseYuan,ChineseYuan10,000 |
| ShanghaiStockExchangewebsite | Means | www.sse.com.cn |
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SectionII.CompanyProfileandMainFinancialIndicatorsI.Companyinformation
| Chinesename | YifengPharmacyChainCo.,Ltd. |
| Chineseabbreviation | YifengPharmacy |
| Englishname | YifengPharmacyChainCo.,Ltd. |
| Englishabbreviation | YifengPharmacy |
| Legalrepresentative | GaoYi |
II.Contactsandcontactinformation
| SecretaryoftheBoardofDirectors | SecuritiesAffairsRepresentative | |
| Name | FanWei | LuoGongzhao |
| Address | No.68,JinzhouAvenue,LuguHigh-techZone,ChangshaCity,HunanProvince | No.68,JinzhouAvenue,LuguHigh-techZone,ChangshaCity,HunanProvince |
| Tel. | 0731-89953989 | 0731-89953989 |
| Fax | 0731-89953989 | 0731-89953989 |
| ir@yfdyf.com | ir@yfdyf.com |
III.Basicinformation
| Registeredaddress | No.2638,RenminRoad,FuqiangCommunity,BaimahuSubdistrict,WulingDistrict,ChangdeCity,HunanProvince |
| Alterationofregisteredaddress | None |
| Officeaddress | No.68,JinzhouAvenue,LuguHigh-techZone,ChangshaCity,HunanProvince |
| Postcodeofofficeaddress | 410000 |
| Website | www.yfdyf.cn |
| ir@yfdyf.com |
IV.Informationdisclosureandplaceofthereport
| MediatowhichtheCompany’sAnnualReportisdisclosedandtheirwebsites | ChinaSecuritiesJournal,SecuritiesTimes,ShanghaiSecuritiesNews,andSecuritiesDaily |
| WebsiteofthestockexchangetowhichtheCompany’sAnnualReportisdisclosed | www.see.com.cn |
| PlacewheretheCompany’sAnnualReportisformulated | OfficeoftheBoardofDirectors |
V.Companystock
| Companystock | ||||
| Stocktype | Stockexchange | Stockabbreviation | Stockcode | Stockabbreviationbeforechange |
| Ashare | ShanghaiStockExchange | YifengPharmacy | 603939 | / |
VI.Otherrelatedinformation
| AccountingfirmemployedbytheCompany(domestic) | Name | Pan-ChinaCertifiedPublicAccountants(specialgeneralpartnership) |
| Officeaddress | No.128,XixiRoad,LingyinSub-district,XihuDistrict,HangzhouCity,ZhejiangProvince | |
| Namesofundersigned | WeiWujunandJiangFengfeng |
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| accountants | ||
| SponsorinstitutionprovidingcontinuoussupervisionduringtheReportingPeriod | Name | CITICSecuritiesCompanyLimited |
| Officeaddress | CITICSecuritiesTower,No.48LiangmaqiaoRoad,ChaoyangDistrict,Beijing | |
| Signingsponsorrepresentatives | DingYuanandZhaoYan | |
| Continuoussupervisionperiod | FromMarch2024untilthecompleteutilizationofraisedfunds |
VII.Mainaccountingdataandfinancialindicatorsinrecentthreeyears(i)Mainaccountingdata
Unit:CN?Currency:CNY
| Mainaccountingdata | 2024 | 2023 | Increase/Decreaseoverthepreviousyear(%) | 2022 |
| Operatingrevenue | 24,062,154,701.73 | 22,588,227,402.22 | 6.53 | 19,886,395,835.95 |
| Netprofitattributabletoshareholdersofthelistedcompany | 1,528,576,669.36 | 1,411,985,024.41 | 8.26 | 1,261,841,039.80 |
| Netprofitattributabletoshareholdersofthelistedcompanyafterdeductionofnon-recurringprofitsandlosses | 1,497,081,296.82 | 1,361,512,589.23 | 9.96 | 1,227,426,490.98 |
| Netcashflowfromoperatingactivities | 4,221,267,084.53 | 4,623,740,795.60 | -8.70 | 3,920,267,304.15 |
| Attheendof2024 | Attheendof2023 | Increase/Decreaseovertheendofthepreviousyear(%) | Attheendof2022 | |
| NetassetsattributabletoshareholdersofthelistedCompany | 10,725,687,023.42 | 9,804,432,476.56 | 9.40 | 8,553,215,869.87 |
| Totalassets | 27,974,736,950.35 | 24,136,539,194.64 | 15.90 | 21,036,023,981.99 |
(ii)Mainfinancialindicators
| Mainfinancialindicators | 2024 | 2023 | Increase/Decreaseoverthepreviousyear(%) | 2022 |
| Basicearningspershare(CN?/share) | 1.26 | 1.17 | 7.69 | 1.05 |
| Dilutedearningspershare(CN?/share) | 1.24 | 1.17 | 5.98 | 1.04 |
| Basicearningspersharewith | 1.24 | 1.13 | 9.73 | 1.02 |
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| non-recurringprofitsandlossesdeducted(CN?/share) | ||||
| Weightedaveragereturnonnetassets(%) | 14.67 | 15.44 | -0.77% | 15.78 |
| Weightedaveragereturnonnetassetswithnon-recurringprofitsandlossesdeducted(%) | 14.37 | 14.89 | -0.52% | 15.35 |
ExplanationontheCompany’smainaccountingdataandfinancialindicatorsforthepreviousthreeyearsattheendoftheReportingPeriod"□Applicable""√Notapplicable"VIII.Differencesinaccountingdataunderdomesticandforeignaccountingstandards(i)DifferencesinnetprofitsandnetassetsattributabletoshareholdersofthelistedCompanyinthefinancialstatementsdisclosedunderinternationalaccountingstandardsandthatdisclosedunderdomesticaccountingstandards"□Applicable""√Notapplicable"(ii)DifferencesinnetprofitsandnetassetsattributabletoshareholdersofthelistedCompanyinthefinancialstatementsdisclosedunderoverseasaccountingstandardsandthatdisclosedunderdomesticaccountingstandards"□Applicable""√Notapplicable"(iii)Explanationondifferencesinoverseasanddomesticaccountingstandards:
"□Applicable""√Notapplicable"IX.Quarter-basedmainfinancialindicatorsin2024
Unit:CN?Currency:CNY
| Quarter1(Jan-Mar) | Quarter2(Apr-Jun) | Quarter3(Jul-Sept) | Quarter4(Oct-Dec) | |
| Operatingrevenue | 5,970,923,210.35 | 5,791,477,901.16 | 5,456,496,751.25 | 6,843,256,838.97 |
| Netprofitattributabletoshareholdersofthelistedcompany | 406,753,106.09 | 390,965,029.11 | 312,782,556.35 | 418,075,977.81 |
| NetprofitsattributabletoshareholdersofthelistedCompanyafterdeductionofnon-recurringprofitsandlosses | 399,441,133.73 | 386,338,695.39 | 306,074,278.81 | 405,227,188.89 |
| Netcashflowfrom | 650,107,205.26 | 1,171,591,112.07 | 1,520,076,060.85 | 879,492,706.35 |
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Descriptionofdifferencesbetweenquarterlydataandperiodicreportdatadisclosed"□Applicable""√Notapplicable"X.Non-recurringprofitandlossitemsandamounts"√Applicable""□Notapplicable"
Unit:CN?Currency:CNY
operatingactivities
Non-recurringprofitandloss
items
| Non-recurringprofitandlossitems | Amountin2024 | Note(ifapplicable) | Amountin2023 | Amountin2022 |
| Profitandlossondisposalofnon-currentassets(includingthewrite-offofprovisionforimpairmentofassets) | 47,641,839.34 | 29,092,610.09 | 12,763,439.78 | |
| Governmentalsubsidiesincludedinthecurrentprofitsandlosses(excludingthegovernmentalsubsidiescloselyrelatingtothenormalbusinessoperationsoftheCompany,conformingtonationalpoliciesandregulations,enjoyedinaccordancewithacertainstandard,andhavingalastingimpactontheprofitsandlossesoftheCompany) | 14,930,754.09 | 44,930,209.02 | 32,820,333.05 | |
| Profitsandlossesfromchangesinfairvaluearisingfromfinancialassetsandfinancialliabilitiesheldbynon-financialinstitutions,andprofitsandlossesfromthedisposaloffinancialassetsandfinancialliabilities,exceptfortheeffectivehedgingbusinessrelatedtothenormalbusinessoperationsoftheCompany | 13,074.67 | |||
| Fundpossessioncostcollectedfromthenon-financialinstitutionandincludedinthecurrentprofitsandlosses | ||||
| Profitsandlossesfromentrustingotherstoinvestormanageassets | ||||
| Profitsandlossesfromexternalentrustedloans | ||||
| Lossesofvariousassetsmadeduetoforcemajeurefactors,suchasnaturaldisasters | ||||
| Reversalofimpairmentreservesforthereceivablesunderindependentimpairmenttest |
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| Gainsarisingfromtheidentifiablenetassetsatfairvalueoftheinvesteeatthetimeofacquisitionwhenthecostofacquiringinvestmentsinsubsidiaries,jointventures,andassociatesislessthantheinvestmentamount | ||||
| ThecurrentnetprofitsandlossesofasubsidiaryfromthebeginningoftheReportingPeriodtothecombinationdateundercommoncontrol. | ||||
| Profitsandlossesfromnon-monetaryassetexchange | ||||
| Profitsandlossesfromdebtrestructuring | ||||
| Non-recurringexpensesincurredbytheenterpriseduetothecessationofbusinessactivities,suchasemployeerelocationexpenses | ||||
| One-timeimpactonthecurrentprofitsandlossesduetotheadjustmentsoftax,accounting,andotherlawsandregulations | ||||
| Non-recurringshare-basedpaymentexpensesduetocancellationormodificationofequityincentiveplan | ||||
| Forcash-settledshare-basedpayments,profitsandlossesarisingfromchangesinfairvalueofemployeecompensationpayableafterthevestingdate | ||||
| Profitsandlossesarisingfromchangesinfairvalueforinvestmentrealestatemeasuredusingthefairvaluemodelforsubsequentmeasurement | ||||
| Profitsfromtransactionswherethetransactionpricehasanexcessordeficitcomparedtofairvalue | ||||
| ProfitsandlossesarisingfromcontingentitemsunrelatedtotheCompany’snormalbusinessoperations | ||||
| Revenueearnedfromentrustedoperations | ||||
| Othernon-operatingrevenueandexpenditureinadditiontothosementionedabove | -17,587,789.91 | -5,060,038.31 | 2,172,359.49 |
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| Otherprofitandlossitemsconformingtothedefinitionofnon-recurringprofitsandlosses | ||||
| Less:Incometaxeffect | 10,257,785.41 | 16,885,907.38 | 12,124,610.41 | |
| Amountaffectedbyminorityinterests(aftertax) | 3,231,645.57 | 1,617,512.91 | 1,216,973.09 | |
| Total | 31,495,372.54 | 50,472,435.18 | 34,414,548.82 |
TheCompanyshallprovideexplanationsfordefiningprofitsandlossesnotlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic-Non-recurringProfitsandLossesasnon-recurringprofitandlossitemswithsignificantamounts,anddefiningnon-recurringprofitandlossitemslistedinthisdocumentasrecurringprofitandlossitems."√Applicable""□Notapplicable"
Unit:CN?Currency:CNY
| Item | Amountinvolved | Reason |
| Investmentincomeduringthefinancialinstrumentholdingperiod | 89,506,157.27 | Relatedtodailybusinessactivities |
XI.Itemsmeasuredbyfairvalue"√Applicable""□Notapplicable"
Unit:CN?Currency:CNY
| Itemname | Openingbalance | Closingbalance | Currentchange | Amountofimpactonthecurrentprofit |
| Investmentinotherequityinstruments | 432,225,200.00 | 339,971,600.00 | -92,253,600.00 | 17,084,000.00 |
| Tradingfinancialassets | 1,630,720,887.94 | 4,406,809,254.46 | 2,776,088,366.52 | 89,506,157.27 |
| Receivablesfinancing | 11,889,888.58 | 29,445,006.56 | 17,555,117.98 | |
| Total | 2,074,835,976.52 | 4,776,225,861.02 | 2,701,389,884.50 | 106,590,157.27 |
XII.Others"□Applicable""√Notapplicable"
SectionIII.ManagementDiscussionandAnalysis
I.DiscussionandanalysisoftheCompany’soperations
ThroughouttheReportingPeriod,thecollectiveeffortsoftheBoardofDirectors,management,andallemployeesenabledtheCompanytoexecutetheoperationalplansetbytheBoardattheyear’soutset.TheCompanycontinuedtoimplementits“regionalconcentrationandsteadyexpansion”developmentstrategy.Byadoptingacity-specificapproachof“newopenings+M&A+franchising”forstoreexpansion,theCompanyachievedanetincreaseof2,512storesfortheyear.TheCompanyenhanceditsproductcompetitivenessbycontinuouslyimprovingcostcontrol,optimizingdistributionchannels,andupgradingitsintelligentsupplychainsystem,resultinginamoredifferentiatedandstrategically-focusedproductrange.Thedevelopmentofanewpharmaceuticalretailecosystem,leveragingmembershipdata,
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bigdataanalytics,internethealthcare,andhealthmanagementservices,significantlyboostedtheCompany’scapabilitiesinnewmediaoperationsandcontentmanagement.Byestablishingcomprehensivedigitalconnectionslinkingcustomers,theenterprise,products,operations,andmarketing,theCompanyisprogressivelyshiftingitsfocusfromproductmanagementtocustomer-centricoperations.TheCompanyhasalsoundertakenarestructuringofitshumanresourcessystems,optimizeditsorganizationalstructure,andreviewedstorestaffing.Additionally,ithasimplementedahybridtalentdevelopmentmodelthatcombinesonlineandofflineapproaches,deeplyintegratingcorporatecultureintoitstrainingprograms.TheseinitiativeshaveresultedinimprovedorganizationalefficiencyandstrengthenedtheCompany’sculturalsoftpower.Inresponsetochangesinindustrypoliciesandmarketconditionsduringthesecondhalfoftheyear,theCompanyswiftlyadjusteditsoperationalstrategytoprioritizequalityimprovement.Throughtheactiveimplementationofvariousmeasures—includingoptimizinghumanresourceallocation,precisestorestaffing,customer-centricrenovationsencompassingpersonnel,products,andstoreenvironments,aswellascostreductionandefficiencyenhancementinitiatives—theCompanyachievedsustainedgrowthinitsannualoperatingperformance.
1.PositivegrowthinoperatingperformanceDuringtheReportingPeriod,theCompanymaintainedasteadyincreaseinoperatingrevenueandoperatingprofit.TheCompanygeneratedoperatingrevenueofCN?24,062.1547million,representingayear-on-yeargrowthof6.53%.ThenetprofitattributabletoshareholdersofthelistedcompanyreachedCN?1,528.5767million,registeringayear-on-yearincreaseof8.26%.Thenetprofitattributabletoshareholdersofthelistedcompanyafterdeductionofnon-recurringprofitsandlosses,wasCN?1,497.0813million,representinga9.96%year-on-yeargrowth.Theweightedaveragereturnonnetassetswas14.67%,withearningspershareofCN?1.26.AsofDecember31,2024,theCompany’stotalassetsamountedtoCN?27,974.737million,representinganincreaseof15.90%comparedtoCN?24,136.5392millionattheendofthepreviousyear.TheequityattributabletoownersoftheparentcompanytotaledCN?10,725.687million,indicatinga9.40%increasecomparedtoCN?9,804.4325millionattheendofthepreviousyear.
2.StoreexpansionDuringtheReportingPeriod,theCompanyadapteditsexpansionstrategytochangingmarketconditionswhilemaintainingits“regionalconcentrationandsteadyexpansion”approachintheCentralSouthChina,EastChina,andNorthChinamarkets.Employingacity-specificstrategyof“newopenings+M&A+franchising,”theCompanyadded2,512newstoresthroughouttheyear.Thisexpansionincluded1,305self-builtstores,381acquisitions,and826franchises.Notably,1,078storeswereclosed.AsoftheendoftheReportingPeriod,thetotalnumberoftheCompany’sstoresis14,684(including3,812franchisestores),registeringanetincreaseof1,434storescomparedtotheendofthepreviousperiod.
3.AdvancingproductcostcontrolandsupplychainoptimizationThroughouttheReportingPeriod,theCompanyfurtherrefineditsproductstructurethroughatripleassessmentsystemevaluatingproductquality,efficacy,andcost-effectiveness.High-quality
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manufacturerswereselectedascoresuppliersthroughproactivequalityinspections,efficacyreviews,andvalueassessments.TheCompanyenhancedcostcontrol,optimizeddistributionchannels,andforgedstrategicpartnershipswithsuppliers.Inresponsetonationalcentralizedprocurementinitiatives,theCompanyactivelycollaboratedwithmanufacturerstointroducecentrallyprocuredproducts.Bytheendof2024,theCompany’scoverageofnationallyprocureditemsexceeded98%,withover2,800SKUsintroduced.Theimplementationofdigitalandintelligenttoolsledtocontinuousimprovementsinthesupplychainsystem,resultinginsustainedenhancementinmerchandisesatisfactionfillrate,inventoryturnover,andsupplychainmanagementefficiency.
4.OperatingthenewpharmaceuticalretailsystemefficientlyDuringtheReportingPeriod,theCompanydeeplyintegratedmembershipmanagement,bigdataanalytics,internethealthcare,andotherhealthmanagementresourcestobuildanecosystem-basednewpharmaceuticalretailsystem.Thisintegrationledtodigitalupgradesinchronicdiseasemanagementandoptimizationofonlinediagnosticservices.BytheendoftheReportingPeriod,theCompanyoperatedover10,000O2Odirect-salestoresandmorethan60024-hourdeliverystores.Keyperformanceindicatorsforthenewretailbusiness,includingorderpickingefficiency,deliveryspeed,orderfulfillmentrate,aswellasper-capita,per-brand,andper-square-meterefficiency,allshowedcontinuousimprovement.AnnualonlinesalesrevenuereachedCN?2.127billion(taxincluded),withO2OcontributingCN?1.721billionandB2CcontributingCN?0.406billion.
5.Undertakinghospitalprescriptionoutflow(frompublichospitalsintopharmaceuticalretailchannel)onlineandoffline
DuringtheReportingPeriod,theCompanyactivelyexplorednewmodelsforfulfillinghospitalprescriptionoutflowsthroughbothonlineandofflinechannels.
Intheofflinesector,theCompanyleverageshospital-adjacentpharmacies,adoptingapatient-centricapproach.WeactivelydevelopDTPspecializedpharmacies,“dual-channel”governmentBMIdesignatedoutlets,andpharmaciesforchronicdiseasemanagementandoutpatientservices.Thisstrategyaimstoenhanceaccessibilitytobothconventionalprescriptiondrugsandnewspecialtymedications.Wehavebolsteredpatientservicesbyimplementingprofessionalservicecapabilities,includingpatientregistration,specializeddelivery,follow-upvisits,andregularonlineandofflinepatienteducation.WealsoenhancecollaborationswithrelevantmanufacturersandactivelyincorporatepharmaceuticalscoveredunderthegovernmentBMIscheme.BytheendoftheReportingPeriod,theCompanyoperated688hospital-adjacentstores(within100metersofClass2Aorhigherhospitals),318DTPspecializedpharmacies,including259storeswithdual-channelmedicalinsuranceaccess,andover4,600pharmaciesintegratedwithoutpatientmedicalinsurancesystems.TheCompanyhasestablisheddeeppartnershipswithnearly200specializedprescriptiondrugsuppliers.
Intheonlinedomain,wehaveupgradedourelectronicprescriptiontransferservices,focusingonbuildingaclosed-loopservicesystemthatcaterstobothpublicandprivatehealthinsurancepatients.Ourdigitalupgradehasoptimizedtheprescriptionservicedigitalplatform,interfacingwithover50hospitalsystems(includinginternethospitals),andimprovingdataprocessingcapabilitiesandstability.
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Wehaveestablishedaprescriptionqualitycontrolservicesystemwithpreciserulesetsanddatabasestailoredtomedical,public,andprivateinsurancerequirements.Toenhancefulfillmentcapabilities,wehaveimplementedamulti-tieredfulfillmentservicesystemcomprisingprovinciallogisticswarehouses,city-levelcentralwarehouses,andhospital-adjacentstores.Concurrently,wehavedevelopedcomprehensiveB2C,O2O,andthird-partylogisticssystems.Wehaveexpandedourbusinessscopebyintegratingwithhealthcommissions,publicandprivateinsuranceproviders,hospitals,andthird-partyinternethospitalplatforms.Significantprogresshasbeenmadeinincubatingcommercialinsurancebenefitservices,particularlyinautoinsuranceandemployeebenefits.Currently,weareconnectedwithover10provincialandmunicipal-levelmedicalinsuranceandhealthcommissionprescriptiontransferplatforms,directlyorindirectlylinkedwithover100hospitals,andmorethan50internethospitals.
6.Makingremarkableprogressindigitaltransformation
TheCompanyhasleverageddigitalintelligenttechnologiestotransformtraditionaloperations,comprehensivelybuildingadigitaloperationalsystemandanintelligentlogisticsanddistributionnetwork.DuringtheReportingPeriod,theCompanyfocusedondigitalizingcorecapabilitiesinmarketingplanning,productsupplychain,membershipoperations,employeeefficiency,franchiseexpansion,andhealthcareinsuranceservices.Managementefficiencywasenhancedacrosshumanresources,finance,logistics,andoperations.Afteryearsofpersistent,evolutionaryiterations,theCompanyhasessentiallycompletedtheconstructionofsixmajormiddle-platformsystems,includingoperations,product,andhumanresourcescenters.Thedigitalper-capitastoreservicecapacityhasachievedaCAGRof20%forfiveconsecutiveyears,significantlyenhancingsystemsupportcapabilities.
7.Enhancingemployeeprofessionalservicecapabilitiesthroughrefinedtrainingsystems
Continuouslyenhancingprofessionalservicecapabilitiesremainsalong-termdriveroforganicgrowthwithintheCompany'sstoresandacorecompetitiveedgeinachievingindustryleadership.DuringtheReportingPeriod,theCompanycontinuedtorefineitstrainingsystembydevelopingandimprovingstandardizedtrainingmaterials,establishingdedicatedandpart-timein-storeinstructorteams,creatingtrainingbasesfornewemployeesandreservestoremanagers,andpromotingthe“ManagementTrainee”program.TheCompanyalsoimplementedvarioustrainingmodescombiningonlineandofflineapproacheswithacredit-basedassessmentsystem.In2024,theCompanykeptimprovingandupdatingthecoursewarefortheserviceconcepts,behavioralhabits,professionalskills,andpharmaceuticalknowledge.Itconducted4,935trainingsessions,coveringmiddleandseniormanagement,corestaff,baseinstructors,full-timelecturers,managementtrainees,districtdirectors,storemanagers,reservestoremanagers,andnewemployees.Theaveragetrainingtimeperemployeereached82.23hours.TheCompanyupgradedtheHandbookforNewEmployeeTrainingCamps,HandbookforPre-StageTrainingforReserveStoreManagers,HandbookforStoreManagerBaseTraining,andHandbookforNewStoreManagerGuidance.Over4,000employeeswereorganizedtoparticipateinthenationallicensedpharmacistqualificationexamination.Simultaneously,theCompanycontinuedtostrengthencooperationwithuniversities,establishinginternshipandtalentcultivationbasestoensureanample
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reserveofprofessionaltalentforfuturedevelopment.。II.IndustryoftheCompanyduringtheReportingPeriod
ThroughouttheReportingPeriod,ongoinghealthcaresystemreformshaveledtoaclearerseparationofprescribinganddispensing,withanincreasingtrendofprescriptionoutflowfromhospitals.Thisshifthasunderscoredthevalueofretailpharmaciesascrucialchannelsfortheout-of-hospitalpharmaceuticalmarketandaskeyentrypointsforcommunityhealthservices.TheagingpopulationinChinahasdrivenaconsistentgrowthindemandforchronicdiseasemanagementanddailymedication,resultinginsustainedincreasesincustomertraffictopharmacies.Thecontinuousadvancementofinternettechnologyandartificialintelligence,coupledwithinnovationsindigitaloperationsmanagement,hasledtothematurationofa“newpharmaceuticalretail”modelthatseamlesslyintegratesonlineandofflinechannels.Concurrently,evolvingindustrypolicies,domesticeconomicdynamics,andshiftsincompetitivelandscapeshavegivenrisetonewtrendswithinthepharmaceuticalretailsector,includingself-regulation,transformationandupgrading,diversificationofproductofferings,andinnovativebusinessmodels.
I.Theacceleratingpaceofpopulationaging,combinedwithheightenedpublichealthawareness,hasledtoasustainedincreaseinconsumerdemandforhealthcareservices,chronicdiseasemedications,andelderlyhealthmanagementsolutions.Thistrendisreflectedintheyear-on-yeargrowthofnationalhealthcareexpendituresandtheexpandingscaleoftheoverallhealthindustry.StatisticaldataindicatesthattheproportionofChina’spopulationaged60andaboverosefrom
14.3%in2012to22.0%in2024.ProjectionsfromtheChinaResearchCenteronAgingsuggestthatthecurrentscaleofChina’ssilvereconomy,estimatedataroundCN?7trillion,isexpectedtoreachCN?30trillionby2035.Theemergenceofanagingsocietyhasintensifiedpressureonpensionandmedicalinsurancefunding,whilesimultaneouslydrivingstrongdemandforchronicdiseasetreatment.Withaclearlong-termdemandformedicalandhealthservicesestablished,pharmaciesarepoisedtoplayanincreasinglycrucialroleascommunityhealthservicehubs,leveragingtheirprofessionalexpertiseandcredibilitytobecomekeydriversinthehealthindustry’sdevelopment.AccordingtotheNationalBureauofStatistics,in2024,thepercapitahealthcareconsumptionexpenditurewithinnationalresidents’overallconsumptionreachedCN?2,547,markinga3.6%increasefromthepreviousyearandaccountingfor9.0%oftotalpercapitaconsumptionexpenditure.
PerCapitaHealthcareConsumptionExpenditureofResidents2015-2024
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DataSource:NationalBureauofStatisticsII.Thepharmaceuticalretailindustryhasexperiencedacontinuedincreaseinchainstorepenetrationandmarketconcentration,drivenbyacombinationofindustrialpolicies,advancementsininternettechnology,andintensifiedmarketcompetition.Notably,ChinaMonitorHealthreportedthatthefourthquarterof2024markedthefirstinstanceofnegativequarter-over-quartergrowthinthetotalnumberofpharmaciesnationwide.
Thechainstorepenetrationrateinretailpharmacieshasshownsignificantgrowth,risingfrom
42.4%in2016to58.5%in2024.However,thisdevelopmentremainsgeographicallyuneven,witheasterncoastalareasboastingchainstoreratesexceeding70%,whilecentralandwesternregionslagbehindatbelow50%.Ruralareascontinuetobedominatedbyindependentpharmacieswithcomparativelylimitedservicecapabilities.In2023,thetop100retailenterprisesoperatednearly130,000direct-salestores,accountingfor33.7%ofthetotalretailchainstoresnationwide.Thesedirect-salestoresgeneratedsalesofCN?317.4billion,representing58.8%ofthenationalpharmaceuticalretailmarketshare.Themarketconcentrationamongthetop100companiesincreasedbynearly4%comparedtothepreviousyear.Thetop10enterprisesintermsofcomprehensivecompetitivenessachievedsalesofCN?156.3billion,accountingforapproximately29%ofoverallnationalretailsales.However,datafromSoochowSecuritiesandChinaDrugStoreindicatesthatChina’smarketconcentrationstilllagsbehindinternationalstandards.Forcomparison,in2022,themarketshareofthetopthreepharmaciesintheUnitedStateswas85%,whilethetoptendrugstoresinJapanhelda73.7%marketshare.ThishighlightsasignificantopportunityforfurtherconsolidationandgrowthinChina’spharmaceuticalretailsector.
MarketConcentrationofPharmaciesinChina
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III.Theongoinghealthcaresystemreform,coordinatingmedicalservices,insurance,andpharmaceuticals,hasacceleratedtheoutflowofhospitalprescriptions.Consequently,pharmacieshaveemergedascrucialentrypointsforcommunityhealthservices,experiencingasignificantincreaseinbothchannelvalueandsocialimportance.
AccordingtotheNoticeoftheNationalHealthcareSecurityAdministrationOfficeonStandardizingtheManagementofMedicalInsuranceDrugPrescriptionsforExternalDistribution(YBBH[2024]No.
86),fromJanuary2025,designatedretailpharmaciesoffering“dual-channel”drugsmustprocessprescriptionsthroughelectronicprescriptioncenters.Paperprescriptionswillbephasedout.Localauthoritiesarerequiredtoswiftlyimplementmedicalinsuranceelectronicprescriptioncenterfunctionalitybasedonthenationalunifiedmedicalinsuranceinformationplatform,connectinginsuranceagencies,designatedmedicalinstitutions,andretailpharmaciestoensureseamlesselectronicprescriptioncirculation.Simultaneously,drivenbyconsumerdemandforconvenienceandeffortstocontrolhospitaldrugexpenditureratios,publichospitals’shareofChina’sthreemajordrugsalesterminalscontinuestodecline.Thesecondandthirdterminalsaresteadilygainingground,withretailpharmacies’salessharegrowingfrom22.5%in2016to29.8%inthefirsthalfof2024.
ProportionofDrugSalesAmongChina’sThreeMajorTerminals
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DataSource:Menet,ChinaDrugStoreIV.Theprogressiveimplementationofmedicalinsuranceoutpatientcoordinationpolicieshasusheredthepharmaceuticalretailindustryintoaneweraofstandardizeddevelopmentandgovernance.Thisregulatoryenvironmentprovidesstrongpolicysupportforthesubstantialgrowthofcompliantandwell-governedchainpharmacies.InFebruary2023,theNationalHealthcareSecurityAdministrationissuedtheNoticeonIncludingDesignatedRetailPharmaciesinOutpatientCoordinationManagement(theNotice),mandatingtheintegrationofqualifieddesignatedretailpharmaciesintooutpatientmanagement.Thisinitiativeaimstoexpandmedicalserviceaccessibilityandenhanceconvenienceforinsuredindividuals.TheNoticepromotesdesignatedretailpharmaciestoofferoutpatientcoordinationservicesandencourageseligibleretailpharmaciestovoluntarilyparticipateintheseservices,therebyextendingoutpatientmedicationcoverageforinsuredpatients.
InJanuary2024,theNationalHealthcareSecurityAdministrationissuedtheNoticeonPromotingFair,Transparent,andBalancedPricingofDrugswithIdenticalGenericNamesandBrandsacrossProvinces.Accordingtothisdirective,provincialmedicalinsurancedepartmentsshouldguidepharmaceuticalprocurementagenciestofocuson“fouridenticaldrugs”(samegenericname,brand,dosageform,andspecification)tofosterfairerpricingpracticesamongpharmaceuticalenterprisesandensurepriceconsistencyacrossprovinces.
InMay2024,thePharmaceuticalPricingandTenderingProcurementDivisionoftheNationalHealthcareSecurityAdministrationissuedtheNoticeonImplementingthe“OnlineStores,PriceInquiry,DataComparison,andGovernanceAction”SpecialInitiative,aimedatdeepeninghealthcaresystemreform,strengtheningdrugpricesupervision,andleveragingvariousretailchannels,includingretailandonlinepharmacies,forpricediscovery.Thisinitiativeisexpectedtoaddressunfairanddiscriminatoryhighpricing,guidereasonableprice-settingbyenterprises,andpromotehigh-qualityinnovationinthepharmaceuticalindustry.
InJune2024,theGeneralOfficeoftheStateCouncilissuedanoticeoutliningtheKeyTasksfor
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DeepeningHealthcareReformin2024,specifyingthekeyprioritiesinthecourse.Thesetasksincludeexploringunifiedmechanismsforpolicycoordination,informationconnectivity,andregulatorysynergyacrossmedicalservices,insurance,andpharmaceuticals.InOctober2024,theNationalHealthcareSecurityAdministrationissuedtheNoticeonStandardizingtheManagementofMedicalInsuranceDrugPrescriptionsforExternalDistribution(YBBH[2024]No.86)toenhanceinsuredindividuals’accesstomedicaltreatmentandmedication.Theseincludeestablishingmutualaidmechanismsforemployeeoutpatientservices,improvingcoverageforspecificdiseasesamongurbanandruralresidents,supportingdual-channeldrugsupply,andacceleratingthedevelopmentofelectronicprescriptioncenters.
InApril2025,12governmentdepartments,includingtheMinistryofCommerceandtheNationalHealthCommission,jointlyreleasedtheSpecialActionPlanforPromotingHealthConsumption.Thisplanreinforcesthehealthpromotionfunctionofpharmaciesandproposesleveragingindustryassociationstoguideretailpharmaciesinexpandingtheirrolesinhealthpromotionandnutritionalhealth.Itdirectslocalauthoritiestoincorporateeligiblemedicalservicesintoregionalmedicalinsurancecoverage.Theplansupportsinnovationin“Internet+”medicalservicemodels,deepeningtheapplicationofelectronicprescriptionsformedicalinsurancethroughthenationalunifiedmedicalinsuranceinformationplatform.Thisfacilitatestheseamlesstransferofelectronicprescriptionsamongdesignatedmedicalinstitutions,meetingthedemandforconvenientmedicalservices.Italsoemphasizestheroleoflicensedpharmacistsinretailpharmacies,encouragingthemtoprovideconsultationsandpromotehealthknowledgeinareassuchasrationalmedicationuseandchronicdiseasemanagement,therebyfosteringhealthconsumptionconcepts.
Inconclusion,whilethepharmaceuticalretailindustrycontinuestoexpandunderfavorablepoliciesandtechnologicaladvancements,itstillfaceschallengessuchasregionaldisparities,costpressures,andtheneedforinnovativebusinessmodels.Futureindustrycompetitionwillfocusnotonlyonscalebutalsoonoperationalefficiencyandecosystem-basedservices.Enterpriseswillneedtobuildtheircorecompetenciesandlong-termgrowthpotentialthroughdigitaltransformation,supplychainoptimization,serviceinnovation,andESGvaluecreation,allwhilemaintainingregulatorycompliance.
Periodicindustrialcharacteristics:
Thepharmaceuticaldistributionindustryisacriticalsectorvitaltonationalandpublicwelfare.Sincepharmaceuticalconsumptionaddressesbasicsocialneeds,itremainsrelativelyunaffectedbymacroeconomicfluctuations,demonstratingminimaleconomiccyclicality.Onlyaselectfewproductsexhibitseasonalvariations,primarilyduetoextremeweatherconditionsduringthesummerandwintermonths.Comparedtoothersectorswithingeneralretail,thepharmaceuticalretailindustryexhibitsweakereconomiccyclicality.However,duetothetime-sensitivity,convenience,consumerhabits,andregionalvariationsassociatedwithpharmaceuticals,theindustrydisplaysdistinctregionalcharacteristics.Enterprisesboastingextensivestorenetworks,standardizedmanagement,systematicoperations,androbustcross-regionalreplicationcapabilitiesenjoysignificantcompetitiveadvantagesinthemarket.
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PositionoftheCompanyintheindustry:
TheCompany’scoreoperationsspantenprovincesandmunicipalities:Hunan,Hubei,Shanghai,Jiangsu,Jiangxi,Zhejiang,Guangdong,Hebei,Beijing,andTianjin.Throughyearsofdevelopment,theCompanyhasestablishedasubstantialregionalcompetitiveedge.TheCompanyhasbeenrecognizedwithnumerousprestigiousaccolades,includingTop100ValueMainBoardListedCompaniesinChina,HurunChinaTop300,Top100ChinesePharmacyValueRanking,Top100PrivateEnterprisesinHunan,China’sMostGrowth-OrientedListedCompanies,ChampionEnterpriseinPharmaceuticalRetailProfitability,Top100inComprehensiveCompetitivenessforPharmaceuticalRetail,LeadingEnterpriseinPharmaceuticalRetailDigitalization,GoldenPhoenixTreeAwardforListedCompanieswiththeMostSocialResponsibility,HighestBrandValueEnterpriseintheNationalPharmaceuticalRetailIndustrybyHurunBrandList,GYBrand’s2024Top500MostValuableBrandsinChina,andMSCI2024ESGRatingA-levelEnterprise.III.MainbusinessoftheCompanyduringtheReportingPeriod
(i)Overviewofmainbusiness
TheCompanyisoneoftheleadingchainretailenterprisesinthedomesticpharmaceuticalsector,primarilyengagedintheretailofpharmaceuticals,healthproducts,medicaldevices,andotherhealth-relateddailyconvenienceitems.Itssubsidiary,YifengPharmaceutical,actsastheinternalprocurementplatformfortheCompany,managinginternalgoodsdistribution,franchisedistribution,andamodestamountofexternalpharmaceuticaldistribution.Anothersubsidiary,HengxiutangPharmaceuticalsCompany,focusesontheR&DandproductionofChinesemedicinalslices,mainlytosatisfytheCompany'sinternalneeds.
DuringtheReportingPeriod,nosignificantchangesoccurredintheCompany’smainbusiness.
(ii)Mainoperatingmodes
TheCompany’smainoperatingmodesincludesproductprocurement,logisticsdistribution,warehousemanagement,andstoresales.Itisshownasfollows:
1.Procurementmode
TheCompanyhassetupaProductCenterresponsibleforaggregatingthedemandforproductspurchasedbyallthestoresinacentralizedmanner,coordinatingsubsidiaries’procurementplans,and
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formulatingcategoryassortmentplans.Thesubsidiary’sProductDepartmentisresponsibleforaggregatingtheprocurementrequirementsofalltheCompany’sstores,submittingcentralizedprocurementplanstotheCompany’sProductCenter,managinglocalizedpurchasingneeds,andexecutingprocurement.Afterunderstandingthestore’sdemands,productdepartmentsatdifferentlevelsperformtaskssuchasproductevaluation,priceinquiries,pricecomparisons,negotiations,andpricedetermination.Theyalsoengageindiscussionswithsupplierstoformalizeprocurementcontracts.TheCompany’sprocurementprocessisasfollows:
2.WarehousemanagementandlogisticsdistributionTheCompanyhasestablishedthemodernlogisticscentersinHunan,Hubei,Jiangsu,Shanghai,Jiangxi,Guangdong,andHebei.Currently,theCompanyboastsadvancedequipment,technologies,andbusinessmanagementmodelsinthelogisticsindustry,includingstereoscopicwarehouses,automatedconveyorsystems,automatedsortingsystems,AGVfororderpicking,Miniloadforintelligentautomaticreplenishment,electroniclabelingsystems,multi-levelshuttles,crossbelts,roboticarms,wirelessRFpicking,acceptancesystems,andintelligentconsolidationsystems.ThesecapabilitiesprovideenhancedsupportfordigitaloperationsofYifeng’ssupplychain.AllproductsinthestoresownedbytheCompanyareindependentlydistributedbythelogisticscentersoftheCompanyoritssubsidiaries.TheCompany’srobustdistributioncapabilitiesprovidestronglogisticalsupportforitsrapidexpansion.Thelogisticsdistributionprocessisasfollows:
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3.Salesmode
(1)RetailAsofDecember31,2024,theCompanyownsatotalof14,684chaindrugstores(including3,812franchisestores)acrosstenprovincesandmunicipalitiesinChina,includingHunan,Hubei,Shanghai,Jiangsu,Jiangxi,Zhejiang,Guangdong,Hebei,Beijing,andTianjin.Thesestoresoffercustomersawiderangeofproducts,includingWesternandChinesepatentmedicine,traditionalChinesemedicineherbalpieces,medicaldevices,healthsupplements,personalcareproducts,anddailyconvenienceitemsrelatedtohealth.
TheCompanycentrallymanagesprocurement,distribution,andpricingguidanceforstoremerchandise.Itsoperatingsystemoverseestheentireprocessofgoodsinflow,sales,andinventorymanagement.Customerscanmakepurchasesusingcash,UnionPaycards,governmentBMIcards,andvariousonlinepaymentmethods.AllsalesdataisseamlesslyintegratedintotheCompany’sSAPsystem.
(2)Franchisedeliveryanddistributionbusiness
FranchisedistributioninvolvespurchasingproductsfromsuppliersandthendistributingthemtothefranchisedstoresoftheCompanyanditssubsidiaries.Thedistributionbusinessprimarilyinvolvessellingcertainagencyproductstothirdparties.
(3)Pharmaceuticale-commerce
TheCompany’spharmaceuticale-commercedivisionleveragesCRMandbigdata,withinnovationsintelemedicineandprescriptioncirculation,creatinganintegratedonlineandofflinenewretailmodel.Theonlinesalesplatformprimarilyutilizesexistingphysicalstores,withcustomersplacingordersonlineandfulfillmenthandledbythird-partylogisticsproviders,company-owneddistributioncenters,orphysicalstores.IV.CorecompetitivenessanalysisduringtheReportingPeriod"√Applicable""□Notapplicable"
1.Developmentstrategyofregionalconcentrationandsteadyexpansion
DuringtheReportingPeriod,theCompanyadheredtothedevelopmentstrategyof“regionalconcentrationandsteadyexpansion”andtheoperationalpolicyof“keypenetrationandintensivemarketing”.Bystrategicallyestablishingareasonablelayoutofthebreadthanddepthofstorenetworks,fosteringapositivebrandimage,enhancingprofessionalservicecapabilities,ensuringstandardizedoperationsandmanagement,continuouslyoptimizingthesupplychainandproductportfolio,andupgradingthemembershipmanagementsystem,theCompanyhaskeptenhancingcustomersatisfactionandrepeatpurchaserates,leadingtoasustainedgrowthinstoresalesrevenue.Whileleveragingregionalcompetitiveadvantages,theCompanyhasalsoimproveditsbargainingpowerthroughthegrowingeconomiesofscaleandreducedlogisticsandoperationalcosts.Thishasensuredthecontinuousgrowthofprofitability.
Thestrategyof“regionalconcentration”hasenabledtheCompanytooccupyregionalmarketsrapidly,achieveprofitlevelssurpassingtheindustryaverage,andsignificantlyincreaseitssalesandprofits.AsofDecember31,2024,theCompanyoperated14,684chainpharmacies(including3,812
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franchisestores)tenprovincesandmunicipalities:Hunan,Hubei,Shanghai,Jiangsu,Jiangxi,Zhejiang,Guangdong,Hebei,Beijing,andTianjin.Thisrepresentsanetincreaseof1,434storescomparedtothepreviousyear-end.Operatingrevenueandnetprofitattributabletoshareholdersofthelistedcompanyincreasedby6.53%and8.26%year-on-year,respectively.
2.Anefficientandagileoperatingsystemandoutstandingcross-provinceoperationsandchainreplicationcapabilitiesTheCompanyisoneofthefewcompaniesintheindustrywhosemajorprovincialsubsidiariesareallprofitable.Ithassignificantadvantagesincross-regionalstoremanagement,replication,andculturalheritage.TheCompanyhasalwaysprioritizedrefined,standardized,andsystematicoperationsandmanagement.Ithasestablishedadigital,connected,andintelligentsystemmanagementplatformthatcoverssixcoreoperationsystems:newstoreexpansion,storeoperations,merchandisemanagement,informationservices,customersatisfaction,andperformanceassessment.WithdigitalbusinesshandlingandtheIT-enabledoperationalprocess,theCompanyhascreatedanefficientandagileoperatingsystem,whicheffectivelysupportsitincross-regionaloperations,rapidandefficientreplication,andindustrymergerandacquisition(M&A)andintegration.DuringtheReportingPeriod,theCompanyhaswitnessedcontinuedimprovementsinitsbusinessoperations,managementefficiency,andprofitabilitythroughorganizationalstructureoptimization,businessprocessinnovation,aswellasbusinessdevelopmentempoweredbydigitalization.AsoftheendoftheReportingPeriod,thetotalnumberoftheCompany’sstoresis14,684(including3,812franchisestores),registeringanetincreaseof1,434storescomparedtotheendofthepreviousperiod.RapidandefficientchainreplicationandindustryconsolidationcapabilitieshaverewardedtheCompanywithanincreasinglymaturestorenetworkandenhancedcompetitiveadvantages.
3.Matureproprietarybrandproductmodelandcomprehensivetrainingsystem
DuringtheReportingPeriod,theCompanycontinuedtoadvanceinitiativesinproductcostcontrol,channeloptimization,andintelligentsupplychainsystemupgrades.Italsofocusedondevelopingandrefiningastrategically-focusedproductportfolio,includingown-brandproducts,exclusivevarieties,andco-developedproductswithmanufacturers.Bydeliveringhigh-quality,effective,cost-efficient,andcontrollablepremiumproductstocustomers,theCompanyhaveestablishedacompetitivebarrierinthemarketandachieveddifferentiatedcompetitioncomparedtoitspeers.
Bystrengtheningspecializedemployeeservicetrainingandconductingcustomersatisfactionassessments,theCompanyhasachievedabalancebetweenprofitgrowthandcustomersatisfaction.Over95%ofthefrontlineemployeesinitsstoresaregraduatesinmedicineandpharmacy.TheCompanyhasestablishedarobustemployeetrainingandtalentdevelopmentsystem.ThroughouttheReportingPeriod,theCompanycontinuedtoenhanceitsprofessionalcredit-basedcurriculumandcorporateuniversity(comprisingaretailacademyandbusinessschool).Theseinstitutionsencompassabroadspectrumfromtalentcultivationtocorporatemanagementresearch,thusforgingasustainablehumanresourcesframework.Bypartneringwitheducationalinstitutions,theCompanyhasdeepenedtheintegrationofindustryandacademia,standardizedtrainingmaterials,assembleddedicatedandpart-time
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instructorteamsatstores,andestablishedtrainingbasesfornewemployeesandprospectivestoremanagers.Thisinitiativehaspropelledthe"managementtrainee"programandvarioustrainingmodelsthatblendonlineandofflineelementswithacredit-basedevaluationsystemforward.AstheCompanyrapidlygrows,thecomprehensiveemployeetrainingsystemensurestheongoingimprovementofemployees’professionalservicecapabilitiesandmeetsitsincreasingdemandforhumanresources,therebyservingasalong-termdriverforendogenousgrowth.
4.IntelligentmembershipservicesystemTheCompanycontinuallyenhancesitsmembershipbenefitssystem,focusingoncustomer-centricityandaligningwithbusinessneedsandmarkettrends.Throughclassifiedandtieredmembershipmanagementandrefinedoperationalpractices,theCompanyhasdevelopedapersonalizedandintelligentmarketingandserviceecosystem.Byimplementingdetailedmemberoperationsandchanneldevelopmentstrategies,theCompanyactivelypromoteschronicdiseasemanagementservicesandtelemedicineconsultations,therebyboostinguserrepurchaserates.Combinedwithsophisticateduserprofiling,thisapproacheffectivelystrengthenscustomers’valuerecognitionandprofessionalrelianceontheCompany.Operationally,theCompanyleveragescutting-edgetechnologiesanddataanalyticstoreshapeitsprocesses,deeplypenetratingregionalmarkets,enhancingin-storecustomerexperiences,andoptimizingoperationalefficiency.Employee-facingmobileapplicationsempowerfrontlinestafftomanagestoreoperations,marketinginitiatives,dataanalysis,andperformancemetricscomprehensivelyonline.Thisenablesthemtodeliverpreciseprofessionalservices,includingmedicationinquiries,chronicdiseasemanagement,andhealthscreeningsformembers.Byharnessinginformationandinternettechnologies,theCompanyisprogressivelyimplementingefficientandintelligentsystemsformembershipinformationmanagement,integratedomnichannelmarketing,userhealthrecordmanagement,andonlinepharmacistconsultations,amongothercentralizedmanagementfunctions.TheCompanyemploysintelligentback-endsystemstoaccuratelyassignprofessionalservicetaskstoemployees,therebyenhancingcustomersatisfactionandword-of-mouthrecommendations.Throughcomplimentaryin-storehealthscreeningsandcomprehensiveprofessionalhealthservices,combinedwithmeticulousrecord-keeping,follow-ups,tracking,assessments,andre-examinations,theCompanyimprovesmedicationadherenceforchronicdiseasepatientsandprovideslifecyclehealthmanagementservices.AsoftheReportingPeriod’send,theCompany’smembershipbasereached104million,markinga19.50%year-on-yearincrease.Membersalesaccountedfor82.03%oftotalsales,up4.63%year-on-year.TheCompany’sWeChatofficialaccountboastsover17.32millionfollowers.
5.“Fleet-type”storelayoutanduniquelocationselectionmodelTocatertothepopulation,marketdemand,andconsumercharacteristicsofdifferentregions,theCompanyhasestablishedanetworkofstorescoveringdifferentcitiesandbusinessdistricts,aswellasformeda“fleet-type”storelayoutconsistingofflagshipstores,regionalcentralstores,medium-sizedcommunitystores,andsmall-sizedcommunitystores.Basedonyearsofsiteselectionexperienceandbigdataanalysis,theCompanyhasdevelopedacomprehensive“businessdistrictpositioningmethod”forstorelocationselection.Thisinvolvesanalyzingthepopulation,populationdensity,andconsumer
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spendingpowerandhabitsinnewcities,pinpointingpotentialbusinessdistricts,determiningstoretypesandlocationrangesforprospectivestoresbasedonspecificdistrictcharacteristics,andemployingasophisticatedstoreselectionmodel,aconsumerflowtestingsystemandasalesforecastingmodeltofinalizepreciselocations.Bypromotingandimplementingthemodelsabove,theCompany’scapabilitiesinselectingnewstorelocationsandensuringthequalityofthesenewstoresconsistentlyimprove,anditsbrandpenetrationcontinuestostrengthen.
6.AdvanceddigitaloperationsmanagementandefficientlogisticsdistributionsystemDigitalmanagementtoolsarefundamentaltoeffectiveoperationsinpharmaceuticalretailenterprisesandcrucialforfulfillingcustomercommitments.TheCompanyhasestablishedarobustdigitaltechnologyR&Dteam,dedicatedtocreatingbespokedigitalandintelligentsystemstailoredtotheCompany’soperationalneeds.ThesesystemsempowertheCompany’soperationalmanagement,externallysupportingstoreoperations,POStransactions,medicalinsuranceservices,publicdomainplatforms,andregulatorycompliance.Internally,theyintegratevariousfunctionalmodulesincludinghumanresources,finance,andlogistics,ensuringstreamlinedinternaloperationsandprocessoptimizationwhilefacilitatingrapidandstablebusinessgrowth.
TheCompanyhasestablishedandcontinuestoupgradesevenstate-of-the-artlogisticscentersacrossHunan,Hubei,Jiangsu,Shanghai,Jiangxi,Guangdong,andHebei,complementedbytenurbandistributionhubsincitiesincludingWuxi,Huai’an,andSuqian.Thisnetworkenablessystematiconlinemanagementof20logisticscenterscoveringproduction,retail,ande-commerceoperations.Bycontinuouslyadvancingvisualizationandintelligentmanagementinwarehousingandlogistics,theCompanyhasimplementedcutting-edgeequipmentandtechnologies.Theseincludeautomatedconveyorsystems,sortingmechanisms,storageandretrievalsystems,AGVgoods-to-personpickingsolutions,Miniloadintelligentreplenishmentsystems,cross-beltsortingsystems,electroniclabeling,wirelessRFpickingandreceivingsystems,smartconsolidationanddispatchingplatforms,andcomprehensivereal-timevisualmonitoringandcontrolsystems.Theseadvancementshavesignificantlyenhancedoperationalefficiencyandsystemintegration,achievinganautomatedlogisticsnetworkthatcloselyalignswithevolvingbusinessrequirements.
7.Outstandingcorporatecultureandmentor-basedtalentteam
TheCompanydeeplyembedsitscorporatecultureintoemployeetrainingprograms,talentassessments,andKPIevaluations,continuouslystrengtheningitsculturalethos.Adheringtocorevaluesof“customerfirst,results-oriented,innovativeefficiency,diligence&pragmatism,responsibility&cooperation,growth&care,”theCompanyfostersaninternalatmosphereofaccountability,teamwork,andtransparentinterpersonalrelationships.Whileprioritizingcustomervalueandresults,theCompanyfacilitatespersonalcareerdevelopmentandpositiveworkexperiencesthroughitscomprehensivetrainingsystemandtalentpipelineinitiatives,ensuringorganizationalcohesionandexecutionexcellence.Byoptimizingthetalentdevelopmentecosystem,applyingsophisticatedcompetencymodels,conductingscientifictalentassessments,andconsistentlyadvancingmanagementtraineeprograms,theCompanycontinuallyenhancesitstalentdensity.Throughthecultivationofamentoring-orientedtalent
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pool,robustemployeecareerplanning,andacomprehensivetrainingframework,theCompanybuildsamulti-tieredtalentstructuretomeetthehumanresourcedemandsofitsrapidexpansion.V.OperationstatusduringtheReportingPeriodDuringtheReportingPeriod,theCompanymaintainedasteadyincreaseinoperatingrevenueandoperatingprofit.TheCompanygeneratedoperatingrevenueofCN?24,062.1547million,representingayear-on-yeargrowthof6.53%.ThenetprofitattributabletoshareholdersofthelistedcompanyreachedCN?1,528.5767million,registeringayear-on-yearincreaseof8.26%.Thenetprofitattributabletoshareholdersofthelistedcompanyafterdeductionofnon-recurringprofitsandlosses,wasCN?1,497.0813million,representinga9.96%year-on-yeargrowth.Theweightedaveragereturnonnetassetswas14.67%,withearningspershareofCN?1.26.AsofDecember31,2024,theCompany’stotalassetsamountedtoCN?27,974.737million,representinganincreaseof15.90%comparedtoCN?24,136.5392millionattheendofthepreviousyear.TheequityattributabletoownersoftheparentcompanytotaledCN?10,725.687million,indicatinga9.40%increasecomparedtoCN?9,804.4325millionattheendofthepreviousyear.(i)AnalysisofMainBusiness
1.AnalysisofChangesinIncomeStatementandCashFlowStatementItems
Unit:CN?Currency:CNY
| Item | Amountinthecurrentperiod | Amountinthesameperiodlastyear | Proportionofchange(%) |
| Operatingrevenue | 24,062,154,701.73 | 22,588,227,402.22 | 6.53 |
| Operatingcosts | 14,408,310,539.42 | 13,957,598,854.74 | 3.23 |
| Salesexpense | 6,179,375,830.54 | 5,487,450,160.02 | 12.61 |
| Managementexpenses | 1,082,881,741.13 | 962,424,859.48 | 12.52 |
| Financialexpenses | 173,903,161.81 | 86,184,603.08 | 101.78 |
| R&Dexpenses | 33,935,812.25 | 33,549,984.91 | 1.15 |
| Netcashflowfromoperatingactivities | 4,221,267,084.53 | 4,623,740,795.60 | -8.70 |
| Netcashflowsfrominvestingactivities | -3,608,849,101.30 | -2,980,321,075.21 | -21.09 |
| Netcashflowfromfinancingactivities | -920,200,252.31 | -2,093,039,229.23 | 56.04 |
Explanationofchangesinoperatingrevenue:Thefirstistheyear-on-yearendogenousgrowthofoperatingrevenueofexistingstores.Thesecondisthecontinuedexpansionthroughnewstoreopenings,industryM&A,aswellasthedevelopmentoffranchiseanddeliverybusinesses.Explanationofchangesinoperatingcosts:Themainreasonforthechangesinoperatingcostsistheyear-on-yeargrowthinsalesrevenue.Explanationofchangesinsalesexpenses:ThisismainlybecausethesalesexpenseincreasedwiththeoperatingrevenueduringtheReportingPeriod.Inaddition,thenewlyopenedandacquiredstoresexperiencedaperiodofcultivationorintegrationduringwhichtherewerehigheramortizationcostsandpromotionalexpenses.Furthermore,thedevelopmentofnewcustomersalsofurtherincreasedthesales
/
expense.Explanationofchangesinadministrativeexpenses:First,theadministrativeexpenseincreasedwiththeoperatingrevenueduringtheReportingPeriod.Second,therewasanincreaseindepreciationexpensesoffixedassetsduringtheReportingPeriod.Explanationofchangesinfinancialexpenses:Itwasmainlyduetotheincreaseininterestexpensescausedbytheissuanceofconvertiblebondsduringthereportingperiod.ExplanationofchangesinR&Dexpenses:ThisismainlyduetothehigheramortizationamountafterthecapitalizationofR&Dexpenditureintointangibleassets.Explanationofchangesinnetcashflowsfromoperatingactivities:Thisismainlyduetoincreasedpaymentsforinventorystockpilingatyear-end.Explanationofchangesinnetcashflowsfrominvestmentactivities:Thisismainlyduetothepurchaseofmorebankwealthmanagementproductsinthecurrentperiod.Explanationofchangesinnetcashflowsfromfinancingactivities:Thisismainlyduetotheissuanceofconvertiblebondsduringthecurrentperiod.Detaileddescriptionofanysignificantchangesinbusinesstype,compositionofprofitorprofitsourceoftheCompanyduringthecurrentperiod"□Applicable""√Notapplicable"
2.Revenueandcostanalysis"□Applicable""√Notapplicable"
(1)Mainbusinessbyindustry,product,region,andsalesmode
Unit:CN?Currency:CNY
| Mainbusinessbyindustry | ||||||
| Byindustry | Operatingrevenue | Operatingcosts | Grossprofitmargin(%). | Operatingrevenueincrease/decreasefromthepreviousyear(%) | Operatingcostincrease/decreasefromthepreviousyear(%) | Grossprofitmarginincrease/decreasefromthepreviousyear(%) |
| Retail | 21,187,950,919.30 | 12,417,209,959.66 | 41.39 | 4.97 | 1.83 | 1.80 |
| Franchiseanddistribution | 2,107,077,791.49 | 1,941,013,188.35 | 7.88 | 11.34 | 13.16 | -1.48 |
| Total | 23,295,028,710.79 | 14,358,223,148.01 | 38.36 | 5.51 | 3.23 | 1.36 |
| Mainbusinessbyproduct | ||||||
| Byproduct | Operatingrevenue | Operatingcosts | Grossprofitmargin(%). | Operatingrevenueincrease/decreasefromthepreviousyear(%) | Operatingcostincrease/decreasefromthepreviousyear(%) | Grossprofitmarginincrease/decreasefromthepreviousyear(%) |
| Chineseand | 18,044,787,773.28 | 11,569,122,686.36 | 35.89 | 5.56 | 3.80 | 1.09 |
/
| Westernpatentmedicine | ||||||
| TraditionalChinesemedicine | 2,313,108,137.06 | 1,193,677,734.15 | 48.40 | 6.09 | 3.55 | 1.27 |
| Non-drug | 2,937,132,800.46 | 1,595,422,727.49 | 45.68 | 4.80 | -0.93 | 3.14 |
| Total | 23,295,028,710.79 | 14,358,223,148.01 | 38.36 | 5.51 | 3.23 | 1.36 |
| Mainbusinessbyregion | ||||||
| Byregion | Operatingrevenue | Operatingcosts | Grossprofitmargin(%). | Operatingrevenueincrease/decreasefromthepreviousyear(%) | Operatingcostincrease/decreasefromthepreviousyear(%) | Grossprofitmarginincrease/decreasefromthepreviousyear(%) |
| CentralandSouthChina | 10,989,623,657.87 | 6,417,034,377.94 | 41.61 | 5.88 | 0.45 | 3.16 |
| EastChina | 9,322,932,374.58 | 5,997,674,874.88 | 35.67 | 1.03 | 1.87 | -0.53 |
| NorthChina | 2,982,472,678.34 | 1,943,513,895.19 | 34.84 | 20.74 | 19.01 | 0.95 |
| Total | 23,295,028,710.79 | 14,358,223,148.01 | 38.36 | 5.51 | 3.23 | 1.36 |
Explanationonthemainbusinessbyindustry,product,region,andsalesmode
Byindustry,theCompany’smainbusinessisdrugretail,whichaccountsfor90.95%oftherevenue.DuringtheReportingPeriod,thegrossprofitmarginoftheCompany’smainbusinesswas38.36%,anincreaseof1.36%comparedtothepreviousyear.Thisismainlyduetotheincreaseintheproportionofwholesalerevenue,whichloweredtheoverallgrossprofitmargin.Regardingproductcategories,WesternandChinesepatentmedicines,traditionalChinesemedicines,andnon-pharmaceuticalproductsallexperiencedrevenuegrowthtovaryingdegrees,withgrowthratesof5.56%,6.09%,and4.80%respectively.Byregion,theCentralandSouthChinacoversHunan,Hubei,andGuangdong;EastChinacoversJiangsu,Shanghai,Zhejiang,andJiangxi;andNorthChinacoversHebei,Beijing,andTianjin.
(2)Productionandsalesanalysistable"□Applicable""√Notapplicable"
(3)Performanceofmajorprocurementcontractsandmajorsalescontracts"□Applicable""√Notapplicable"
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(4)Costanalysistable
Unit:CN?
| Byindustry | |||||||
| Byindustry | Costcompositionitems | Amountforthecurrentperiod | Proportionoftheamountforthecurrentperiodtototalcost(%) | Amountforthesameperiodofthepreviousyear | Proportionoftheamountofthesameperiodofthepreviousyeartototalcost(%) | Proportionofchangeofthecurrentamountcomparedtothesameperiodofthepreviousyear | DetailsDescription |
| Retail | Salescost | 12,417,209,959.66 | 86.48 | 12,193,594,911.77 | 87.67 | 1.83 | |
| Franchiseanddistribution | Salescost | 1,941,013,188.35 | 13.52 | 1,715,306,468.77 | 12.33 | 13.16 | |
| Total | Salescost | 14,358,223,148.01 | 100.00 | 13,908,901,380.54 | 100.00 | 3.23 | |
| Byproduct | |||||||
| Byproduct | Costcompositionitems | Amountforthecurrentperiod | Proportionoftheamountforthecurrentperiodtototalcost(%) | Amountforthesameperiodofthepreviousyear | Proportionoftheamountofthesameperiodofthepreviousyeartototalcost(%) | Proportionofchangeofthecurrentamountcomparedtothesameperiodofthepreviousyear | DetailsDescription |
| ChineseandWesternpaten | Salescost | 11,569,122,686.36 | 80.58 | 11,145,804,284.09 | 80.13 | 3.80 | |
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| tmedicine | ||||||
| TraditionalChinesemedicine | Salescost | 1,193,677,734.15 | 8.31 | 1,152,773,656.91 | 8.29 | 3.55 |
| Non-drug | Salescost | 1,595,422,727.49 | 11.11 | 1,610,323,439.54 | 11.58 | -0.93 |
| Total | Salescost | 14,358,223,148.01 | 100.00 | 13,908,901,380.54 | 100.00 | 3.23 |
AdditionalinformationoncostanalysisNone
(5)ChangesinthescopeofconsolidationduringtheReportingPeriodarisingfromchangesintheequityofmajorsubsidiaries"□Applicable""√Notapplicable"
(6)SignificantchangesoradjustmentstotheCompany’sbusiness,productsorservicesduringthereportingperiod"□Applicable""√Notapplicable"
(7)InformationregardingmajorcustomersandprimarysuppliersA.Informationregardingmajorcustomers
√Applicable□Notapplicable
ThesalesamountfromthetopfivecustomerstotaledCN?6,347.49CN?10,000,accountingfor
0.26%ofthetotalannualsales.ThesalesamountofrelatedpartiesfromthetopfivecustomerswasCN?1,758.55CN?10,000,accountingfor0.07%ofthetotalannualsales.
| S/N | Customername | Salesamount(RMB10,000) | Percentageofannualsales(%) |
| 1 | ClientI | 1,758.55 | 0.07 |
| 2 | ClientII | 1,293.18 | 0.05 |
| 3 | ClientIII | 1,213.38 | 0.05 |
| 4 | ClientIV | 1,108.67 | 0.05 |
| 5 | ClientV | 973.71 | 0.04 |
| Total | 6,347.49 | 0.26 |
DuringtheReportingPeriod,thesalestoasinglecustomeraccountedformorethan50%ofthetotal,andtherewerecaseswherenewcustomersareamongthetop5customersortherewasasignificantdependenceonasmallnumberofcustomers."□Applicable""√Notapplicable"B.Informationregardingprimarysuppliers
√Applicable□Notapplicable
TheprocurementamountfromthetopfivesupplierstotaledCN?710,344.98CN?10,000,accountingfor45.23%ofthetotalannualprocurement.TheprocurementamountfromrelatedpartiesofthetopfivesupplierswasCN?0.00CN?10,000,accountingfor0.00%ofthetotalannualprocurement.
| S/N | Suppliername | Procurement | Proportioninannual |
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| amount(RMB10,000) | procurementamount(%) | ||
| 1 | Supplier1 | 257,070.86 | 16.37 |
| 2 | Supplier2 | 178,429.02 | 11.36 |
| 3 | Supplier3 | 155,664.26 | 9.91 |
| 4 | Supplier4 | 74,087.99 | 4.72 |
| 5 | Supplier5 | 45,092.85 | 2.87 |
| Total | 710,344.98 | 45.23 |
DuringtheReportingPeriod,thesalestoasinglesupplieraccountedformorethan50%ofthetotal,andtherewerecaseswherenewsuppliersareamongthetop5suppliersortherewasasignificantdependenceonasmallnumberofsuppliers."□Applicable""√Notapplicable"Additionalinformation:
None
3.Costs"√Applicable""□Notapplicable"
| Item | Amountincurredinthecurrentperiod(RMB) | Amountincurredforthepreviousperiod(RMB) | Proportionofchange(%) |
| Salesexpense | 6,179,375,830.54 | 5,487,450,160.02 | 12.61 |
| Managementexpenses | 1,082,881,741.13 | 962,424,859.48 | 12.52 |
| R&Dexpenses | 33,935,812.25 | 33,549,984.91 | 1.15 |
| Financialexpenses | 173,903,161.81 | 86,184,603.08 | 101.78 |
Thereasonsforthechangesinsalesexpenses:ThisismainlybecausesalesexpensesincreasedwiththeoperatingrevenueduringtheReportingPeriod.Inaddition,thenewlyopenedandacquiredstoresexperiencedaperiodofcultivationorintegrationduringwhichtherewerehigheramortizationcostsandpromotionalexpenses.Furthermore,thedevelopmentofnewcustomersalsofurtherincreasedthesalesexpense.Thereasonsforthechangesinadministrativeexpenses:First,theadministrativeexpenseincreasedwiththeoperatingrevenueduringtheReportingPeriod.Second,therewasanincreaseindepreciationexpenseduringtheReportingPeriod.ExplanationofchangesinR&Dexpenses:ThisismainlyduetothehigheramortizationamountafterthecapitalizationofR&Dexpenditureintointangibleassets.Explanationofchangesinfinancialexpenses:
4.R&Dinvestment
(1)DetailsofR&Dinvestment"√Applicable""□Notapplicable"
Unit:CN?
| ExpensedR&Dinvestmentinthecurrentperiod | 16,707,557.29 |
| CapitalizedR&Dinvestmentinthecurrentperiod | 36,029,062.15 |
/
| TotalR&Dinvestment | 52,736,619.44 |
| TotalR&Dinvestmentasaproportionofoperatingrevenue(%) | 0.22 |
| ShareofcapitalizedR&Dinvestment(%) | 68.32 |
(2)DetailsofR&Dpersonnel"√Applicable""□Notapplicable"
| NumberoftheCompany’sR&DPersonnel | 323 |
| NumberofR&DpersonnelasaproportionoftheCompany’stotalworkforce(%) | 0.81 |
| EducationalBackgroundofR&DPersonnel | |
| AcademicDegree | Number |
| Doctoratedegree | 0 |
| Master’sdegree | 13 |
| Undergraduate | 218 |
| Collegedegree | 92 |
| Highschoolandbelow | 0 |
| AgeofR&DPersonnel | |
| AgeGroup | Number |
| Under30(excluding30) | 90 |
| 30–40(including30butexcluding40) | 188 |
| 40–50(including40butexcluding50) | 41 |
| 50–60(including50butexcluding60) | 4 |
| 60andabove | 0 |
(3)Description"□Applicable""√Notapplicable"
(4)Reason(s)formajorchangesinthecompositionofR&DpersonnelandtheirimpactontheCompany’sfuturedevelopment"□Applicable""√Notapplicable"
5.Cashflow"√Applicable""□Notapplicable"
| Item | Amountincurredinthecurrentperiod(RMB) | Amountincurredforthepreviousperiod(RMB) | Proportionofchange(%) |
| Netcashflowfromoperatingactivities | 4,221,267,084.53 | 4,623,740,795.60 | -8.70 |
| Netcashflowsfrominvestingactivities | -3,608,849,101.30 | -2,980,321,075.21 | -21.09 |
| Netcashflowfromfinancingactivities | -920,200,252.31 | -2,093,039,229.23 | 56.04 |
Explanationofchangesinnetcashflowsfromoperatingactivities:Thisismainlyduetoincreasedpaymentsforinventorystockpilingatyear-end.Explanationofchangesinnetcashflowsfrominvestingactivities:Thisismainlyduetothepurchaseofmorebankwealthmanagementproductsinthecurrentperiod.Explanationofchangesinnetcashflowsfromfinancingactivities:Thisismainlyduetotheissuanceofconvertiblebondsduringthecurrentperiod.
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(ii)Explanationonmajorchangesinprofitsduetonon-principalbusiness"□Applicable""√Notapplicable"(iii)Analysisofassetsandliabilities
√Applicable□Notapplicable
1.Assetsandliabilities
Unit:CN?
| Itemname | CurrentPeriod’sClosingBalance | CurrentPeriod’sClosingBalanceasaProportionofTotalAssets(%) | PreviousPeriod’sClosingBalance | PreviousPeriod’sClosingBalanceasaProportionofTotalAssets(%) | Proportionofchangeincurrentperiod’sclosingbalanceoverpreviousperiod(%) | Description |
| Tradingfinancialassets | 4,406,809,254.46 | 15.75 | 1,630,720,887.94 | 6.76 | 170.24 | Primarilyduetoanincreaseinthepurchaseofbankwealthmanagementproductswithidlefundsinthecurrentperiod |
| Receivablesfinancing | 29,445,006.56 | 0.11 | 11,889,888.58 | 0.05 | 147.65 | Primarilyduetoanincreaseinnotesreceivableinthecurrentperiod |
| Prepayments | 302,853,987.72 | 1.08 | 141,493,810.64 | 0.59 | 114.04 | Primarilyduetoincreasedyear-endinventorystockpiling,resultinginacorrespondingincreaseinprepaidprocurementfees |
| Long-termequityinvestment | 0.00 | 0.00 | 5,565,690.31 | 0.02 | -100.00 | Duetodisposalofjointventuresinthecurrentperiod |
| Worksinprogress | 228,582,939.93 | 0.82 | 175,121,866.79 | 0.73 | 30.53 | Primarilyduetoincreasedinvestmentin |
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| theHubeiPharmaceuticalSortingandProcessingCenterproject | ||||||
| Othernon-currentassets | 15,165,912.63 | 0.05 | 30,269,025.79 | 0.13 | -49.90 | Primarilyduetoadecreaseinprepaiddepositsforacquisitionprojects |
| Advancereceipts | 22,884,188.22 | 0.08 | 15,959,550.59 | 0.07 | 43.39 | Primarilyduetoanincreaseinprepaidstoresubleasepayments |
| Contractliabilities | 130,070,603.90 | 0.46 | 80,166,931.03 | 0.33 | 62.25 | Primarilyduetoanincreaseinprepaidgoodspayments |
| Othercurrentliabilities | 11,312,523.92 | 0.04 | 6,656,678.33 | 0.03 | 69.94 | Primarilyduetoanincreaseinoutputtaxtobetransferred |
| Long-termborrowings | 0.00 | 0.00 | 133,617,147.68 | 0.55 | -100.00 | Duetorepaymentofloansinthecurrenttheperiod |
| Bondspayable | 1,601,308,876.07 | 5.72 | 0.00 | 0.00 | 100.00 | Duetotheissuanceofconvertiblebondsduringthecurrentperiod |
| Deferredincometaxliabilities | 15,410,798.48 | 0.06 | 26,758,566.63 | 0.11 | -42.41 | Primarilyduetoyear-endfairvaluechangesinotherequityinstrumentinvestments |
| Otherequityinstruments | 221,566,198.54 | 0.79 | 0.00 | 0.00 | 100.00 | Duetotheissuanceofconvertiblebondsduringthecurrentperiod,recognizingthefairvalueoftheequitycomponent |
| Treasury | 3,764,535.58 | 0.01 | 42,238,481.15 | 0.17 | -91.09 | Primarilydue |
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| stock | tounlockingofrestrictedstock,recoveringtheinitiallyconfirmedrepurchaseobligations | |||||
| Othercomprehensiveincome | -47,773,490.51 | -0.17 | 21,416,709.49 | 0.09 | -323.07 | Duetoyear-endfairvaluechangesinotherequityinstrumentinvestments |
| Surplusreserves | 326,019,567.19 | 1.17 | 198,282,150.00 | 0.82 | 64.42 | Duetoanincreaseinthestatutorysurplusreserveprovisionedfromthenetprofitgrowthofthecurrentperiod |
Additionalinformation:
None
2.Overseasassets"□Applicable""√Notapplicable"
3.RestrictionsonmajorassetsasoftheendoftheReportingPeriod"√Applicable""□Notapplicable"
| Item | Closingbookvalue | Reasonforrestriction |
| Monetaryfunds | 1,337,755,370.27 | Deposittoacceptancebills |
| Monetaryfunds | 30,336.43 | Deposittogovernmentplatforms |
| Monetaryfunds | 80,000,000.00 | Controlofpurchasingwealthmanagementproducts |
| Monetaryfunds | 340,000.00 | Judiciallyfrozenfunds |
| Monetaryfunds | 2,000.00 | ETCfrozenfunds |
| Debtinvestments | 88,710,433.34 | Largecertificateofdepositpledges |
| Total | 1,506,838,140.04 |
None
4.Otherexplanations"□Applicable""√Notapplicable"(iv)Analysisofindustryoperationalinformation"□Applicable""√Notapplicable"
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Analysisofoperationalinformationabouttheretailindustry
1.DistributionofoperatingstoresasoftheendoftheReportingPeriod"√Applicable""□Notapplicable"
| Region | BusinessFormat | StoresinSelf-ownedProperties | StoresinLeasedProperties | ||
| NumberofStores | FloorArea(10,000m2) | NumberofStores | FloorArea(10,000m2) | ||
| CentralSouthChina | Pharmaceuticalretailchain | 10 | 0.36 | 5,022 | 65.86 |
| EastChina | Pharmaceuticalretailchain | 1 | 0.035 | 4,067 | 69.25 |
| NorthChina | Pharmaceuticalretailchain | 2 | 0.065 | 1,770 | 24.57 |
| Total | 13 | 0.46 | 10,859 | 159.68 | |
2.Otherexplanations"√Applicable""□Notapplicable"
(1)TheCompany’sstorenetworkduringtheReportingPeriodTheCompanyadherestothedevelopmentstrategyof“regionalconcentrationandsteadyexpansion”,aimingat“consolidatingtheshareinCentralSouth,East,andNorthChinawhileexpandingacrossthecountry”.Thishaspromotedtheformationofamulti-tieredstorenetworkcomprisingflagshipstores,regionalcentralstores,medium-sizedcommunitystores,andsmall-sizedcommunitystores.TheCompanyhasbeendeeplyengagedintheregionalmarketandgainedaleadingpositioninthemarketthroughrefinedoperationandbrandpenetration.AsoftheendoftheReportingPeriod,theCompanyoperated14,684stores(including3,812franchisestores),representinganetincreaseof1,434storesduringtheReportingPeriod.
(2)BusinessoftheCompany’sdirect-salestoresduringtheReportingPeriodAsofDecember31,2024,theCompanyhad10,872directly-managedstores.Thebusinessofthedirect-salestoresisasfollows:
| StoreType | NumberofStores | StoreOperatingArea | AverageDailySalesperSquareMeter |
| (store) | (m2) | (taxincluded;CN?/m2) | |
| Flagshipstore | 26 | 18,187 | 140.78 |
| Regionalcentralstore | 95 | 33,148 | 58.55 |
| Medium-sizedcommunitystore | 1,023 | 190,600 | 55.41 |
| Small-sizedcommunitystore | 9,728 | 878,856 | 50.31 |
| Total | 10,872 | 1,120,791 | 51.07 |
Note:Averagedailysalespersquaremeter=Averagedailyoperatingrevenue/Storeoperatingarea
Averagedailyoperatingrevenue=Store’sannualoperatingrevenue(taxincluded)/Store’sbusinessdays
Operatingareareferstotheactualareaofthestoreforbusinessoperations.
(3)StoreslicensedforgovernmentBMIAsofDecember31,2024,10,300(94.74%)amongtheCompany’s10,872direct-salechainstores
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hadbeenlicensedasGovernmentBasicMedicalInsurance(BMI)DesignatedRetailPharmacies.
| Region | NumberofStores(store) | BMIDesignatedRetailPharmacies(store) | PercentageofBMIPharmacies |
| CentralSouthChina | 5,032 | 4,957 | 98.51% |
| EastChina | 4,068 | 3,747 | 92.11% |
| NorthChina | 1,772 | 1,596 | 90.07% |
| Total | 10,872 | 10,300 | 94.74% |
(5)OnlinebusinessoperationDuringtheReportingPeriod,relyingonofflinestoresandmembers,theCompanyproceededwithitsnewpharmaceuticalretailsystembasedontheecosystemsofomni-channelmembership,onlineandofflinemedicalservices,andwhole-lifecyclehealthmanagement.Meanwhile,thenewmediaoperation,contentoperation,andothercapabilitiessawrapidimprovement.
AsoftheendoftheReportingPeriod,theCompany’smembershiptotaled104million,andtheCompany’sWeChatofficialaccounthadmorethan17.32millionfollowers.O2Omulti-channelandmulti-platformonlinedirect-salestoresexceeded10,000,coveringallmajorcitiesinthepresenceoftheCompany.LeveragingthedualenginesofO2OandB2Cstrategies,coupledwiththeCompany’sregionalfocusapproach,intelligentsupplychainsystem,andrefinedoperations,theCompany’sinternetbusinessachievedsalesrevenueofCN?2.127billion(taxincluded).O2OoperationscontributedCN?1.721billion,whileB2CoperationsgeneratedCN?0.406billion.(v)AnalysisofinvestmentstatusOverallanalysisofoutboundequityinvestments"√Applicable""□Notapplicable"
DuringtheReportingPeriod,theCompanyengagedin18M&Ainvestmentswithintheindustry.Ofthese,13projectsweresuccessfullycompleted,while5wereterminated.Detailsareasfollows:
(1)InSeptember2023,theCompany’sholdingsubsidiary,ShijiazhuangXinxing,enteredintothe"EquityTransferAgreement"withZhangWeizhetoacquire70%equityofChengdeXinxingBaixingPharmacyChainCo.,Ltd.atapriceofCN?30.24million,whichinvolved20stores.Aspertheagreement’sterms,thisprojecthasbeensubsequentlyterminated.
(2)InOctober2023,theCompany’sholdingsubsidiary,ShijiazhuangXinxing,enteredintothe"EquityTransferAgreement"withMaLiminandotherindividualstoacquire70%equityofPingquanXinxingLiminPharmacyChainCo.,Ltd.atapriceofCN?33.6million,whichinvolved55stores.Theproject’sequitydeliveryprocedureswerecompletedinJanuary2024.
(3)InNovember2023,theCompany’sholdingsubsidiary,ShijiazhuangXinxing,enteredintothe"EquityTransferAgreement"withWangTaoandotherindividualstoacquire70%equityofNangongXinxingHuakangPharmacyChainCo.,Ltd.atapriceofCN?22.4million,whichinvolved67stores.Theproject’sequitydeliveryprocedureswerecompletedinMay2024.
(4)InNovember2023,theCompany’sholdingsubsidiary,HubeiYifengGuangshengtang,enteredintoanassetacquisitionframeworkagreementwithLuoChengbingandLiNatobeassignedtheassetsandbusinessof14pharmaciesunderJingzhouTongyuantangPharmaceuticalCo.,Ltd.Theproject’s
/
assetdeliveryprocedureswerecompletedinJanuary2024,andthefinalassetacquisitionpricewasCN?3.5million.
(5)InNovember2023,theCompany’sholdingsubsidiary,HubeiYifengGuangshengtang,enteredintoanassetacquisitionframeworkagreementwithLuoChengbingandZhengXiaojuantobeassignedtheassetsandbusinessof10pharmaciesunderJingzhouJingkangPharmacyChainCo.,Ltd.Theproject’sassetdeliveryprocedureswerecompletedinJanuary2024,andthefinalassetacquisitionpricewasCN?2.5million.
(6)InNovember2023,theCompany’sholdingsubsidiary,WuxiKyushu,enteredintoanassetacquisitionframeworkagreementtobeassignedtheassetsandbusinessofWuxiShenzhouPharmacyCo.,Ltd.andother3pharmacies.Theproject’sassetdeliveryprocedureswerecompletedinJanuary2024,andthefinalassetacquisitionpricewasCN?11.5million.
(7)InDecember2023,theCompany’sholdingsubsidiary,ShijiazhuangXinxing,enteredintothe"EquityTransferAgreement"withLuDezhiandotherindividualstoacquire70%equityofHandanXinxingShengdePharmacyChainCo.,Ltd.atapriceofCN?15.4million,whichinvolved25stores.Theproject’sequitydeliveryprocedureswerecompletedinMarch2024.
(8)InDecember2023,theCompany’sholdingsubsidiary,ShijiazhuangXinxing,enteredintothe"EquityTransferAgreement"withQinWeiandotherindividualstoacquire70%equityofJizeRenkangXinxingPharmacyChainCo.,Ltd.atapriceofCN?5.39million,whichinvolved15stores.Theproject’sequitydeliveryprocedureswerecompletedinMarch2024.
(9)InDecember2023,theCompany’sholdingsubsidiary,ShijiazhuangXinxing,enteredintothe"EquityTransferAgreement"withYuanLijuanandotherindividualstoacquire70%equityofHandan(YongnianDistrict)XinxingWankangPharmaceuticalsChainCo.,Ltd.atapriceofCN?17.5million,whichinvolved15stores.Aspertheagreement’sterms,thisprojecthasbeensubsequentlyterminated.
(10)InDecember2023,theCompany’sholdingsubsidiary,ShijiazhuangXinxing,enteredintothe"EquityTransferAgreement"withTanHong’enandotherindividualstoacquire70%equityofHandanXinxingKanghengBaixingPharmaceuticalsChainCo.,Ltd.atapriceofCN?16.1million,whichinvolved35stores.Theproject’sequitydeliveryprocedureswerecompletedinApril2024.
(11)InJanuary2024,theCompany’sholdingsubsidiary,ShijiazhuangXinxing,enteredintothe"EquityTransferAgreement"withMengLingyangandotherindividualstoacquire80%equityofHebeiWochengXinxingAnkangPharmaceuticalChainCo.,Ltd.atapriceofCN?28.61million,whichinvolved49stores.Theproject’sequitydeliveryprocedureswerecompletedinAugust2024.
(12)InMarch2024,theCompany’sholdingsubsidiary,ShijiazhuangXinxing,enteredintothe"EquityTransferAgreement"withSongHongyunandotherindividualstoacquire70%equityofXingtaiXinxingKangzePharmaceuticalChainCo.,Ltd.atapriceofCN?18.2million,whichinvolved53stores.Theproject’sequitydeliveryprocedureswerecompletedinJune2024.
(13)InMarch2024,theCompany’sholdingsubsidiary,ShijiazhuangXinxing,enteredintothe"EquityTransferAgreement"withHebeiShinewayChainDrugstoresCo.,Ltd.andFengmintoacquire80%equityofHebeiSenzhongPharmaceuticalChainCo.,Ltd.atapriceofCN?40million,which
/
involved44stores.Aspertheagreement’sterms,thisprojecthasbeensubsequentlyterminated.
(14)InMarch2024,theCompany’swholly-ownedsubsidiary,JiangsuYifeng,enteredintothe"EquityTransferAgreement"withDaiYukuaiandotherindividuals,toacquire70%equityofKunshanHuashengPharmacyCo.,Ltd.atapriceofCN?12.6million,whichinvolved20stores.Theproject’sequitydeliveryprocedureswerecompletedinSeptember2024.
(15)InApril2024,theCompany’sholdingsubsidiary,ShijiazhuangXinxing,enteredintothe"EquityTransferAgreement"withLiJunandLiuJianyingtoacquire85%equityofBaodingXinxingWanbaotangPharmacyChainOperationCo.,Ltd.atapriceofCN?24.65million,whichinvolved32stores.Aspertheagreement’sterms,thisprojecthasbeensubsequentlyterminated.
(16)InMay2024,theCompany’sholdingsubsidiary,ShijiazhuangXinxing,enteredintothe"EquityTransferAgreement"withLiYonghuiandGuoTaotoacquire80%equityofBaodingXinxingBailixiKangshiPharmaceuticalSalesCo.,Ltd.atapriceofCN?14.32million,whichinvolved23stores.Theproject’sequitydeliveryprocedureswerecompletedinDecember2024.
(17)InJune2024,theCompany’swholly-ownedsubsidiary,HubeiYifeng,enteredintothe"EquityTransferAgreement"withLiZeshengandotherindividuals,toacquire80%equityofHubeiYifengFujutangPharmacyChainCo.,Ltd.atapriceofCN?8.8million,whichinvolved15stores.Aspertheagreement’sterms,thisprojecthasbeensubsequentlyterminated.
(18)InJune2024,theCompany’sholdingsubsidiary,YiduYifeng,enteredintoanassetacquisitionframeworkagreementwithDaiYuzhu,DaiYaping,andDaiYuhongtobeassignedtheassetsandbusinessofYiduKangzhijiaPharmacyandother10pharmacies.Theproject’sassetdeliveryprocedureswerecompletedinSeptember2024,andthefinalassetacquisitionpricewasCN?2.8million.
1.Significantequityinvestments"□Applicable""√Notapplicable"
2.Significantnon-equityinvestments"□Applicable""√Notapplicable"
3.Financialassetsmeasuredatfairvalue"□Applicable""√Notapplicable"Investmentsinsecurities"□Applicable""√Notapplicable"Explanationoninvestmentsinsecurities"□Applicable""√Notapplicable"Investmentsinprivateequityfunds"□Applicable""√Notapplicable"Investmentsinderivatives"□Applicable""√Notapplicable"
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4.ProgressdetailsofmaterialassetrestructuringandconsolidationduringtheReporting
Period"□Applicable""√Notapplicable"(vi)Materialassetsandequitysales"□Applicable""√Notapplicable"(vii)AnalysisofmajorcompaniescontrolledorheldbytheCompany"√Applicable""□Notapplicable"
| S/N | Subsidiary | Shareholding(%) | Mainbusiness | RegisteredCapital(CN?10,000) | TotalAssets(CN?10,000) | NetAssets(CN?10,000) | OperatingRevenue(CN?10,000) | OperatingProfit(CN?10,000) | NetProfit(CN?10,000) |
| 1 | YifengPharmaceutical | 100 | Pharmaceuticalwholesale | 15,000.00 | 571,360.98 | 132,676.01 | 601,050.81 | 72,731.35 | 59,835.63 |
| 2 | JiangsuYifeng | 100 | Pharmaceuticalretail | 15,000.00 | 887,409.73 | 181,717.57 | 563,445.61 | 40,771.02 | 29,974.07 |
| 3 | HubeiPharmaceutical | 100 | Pharmaceuticalwholesale | 10,000.00 | 159,774.08 | 47,076.59 | 248,562.21 | 26,545.51 | 19,965.45 |
Note:TheabovemajorcompaniescontrolledorheldbytheCompanyincludesubsidiarieswhosenetprofitaccountsformorethan10%oftheCompany’stotalnetprofit.(viii)StructuredentitiescontrolledbytheCompany"□Applicable""√Notapplicable"VI.TheCompany’sdiscussionandanalysisofitsfuturedevelopment(i)Industrylandscapeandtrends"√Applicable""□Notapplicable"
DuringtheReportingPeriod,thehealthcareindustrycontinuedtoexpand,drivenbythreemajortrends:anagingpopulation,theseparationofmedicalandpharmaceuticalservices,andincreasedindustryconcentration.Retailpharmaciesexperiencedagrowingshareofterminalsales,withchainstoresandindustryconsolidationontherise.Simultaneously,changesintheeconomicenvironment,theongoingimplementationofmedicalinsuranceoutpatientcoordinationpolicies,andadvancementsininternetanddigitaltechnologieshavereshapedtheindustrylandscape.Retailpharmaciesareevolvingtowardsstandardization,scaleexpansion,professionalization,anddifferentiation,graduallyformingacompetitivelandscapecharacterizedby“concentrationatthetop,online-offlineintegration,anddiversifiedservices.”Inresponsetoindustryexpansionandnewgrowthopportunitiesinthesilvereconomyeraofthehealthindustry,companiesarealigningwithcurrenttrendsandpolicychangeswhile
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focusingonregulatorycompliance.Thedevelopmentofcorecompetenciesthroughdigitaltransformation,supplychainoptimization,andinnovativeservicemodelsforfulllifecyclehealthmanagementacrossonlineandofflinechannelshasbecomeanewtrendinindustrycompetitionandlong-termsustainabledevelopment.(ii)TheCompany’sdevelopmentstrategy"√Applicable""□Notapplicable"
TheCompanyremainscommittedtoitscorporatemissionof“enhancingthephysicalandmentalhealthoftheChinesepeople.”Itfocusesoncorestrategiesincluding“professionalservices,digitalization,supplychain,newretail,operationalsystems,talent,andculture,”withageographicalfocusonCentralSouth,EastChina,andNorthChina,whileactivelyexpandingintothenationalmarket.Byinnovatingbusinessmodelscenteredoncustomervalueandextendingupstreamanddownstreamchannels,theCompanyisexploringnewdevelopmentopportunities.Throughinitiativessuchasbrandimageenhancement,improvementofprofessionalservicecapabilities,differentiatedproductcategoryexpansion,intelligentsupplychainsystemconstruction,anddigitaltechnologyinnovation,theCompanycontinuestostrengthenitscorecompetitiveness.Newconceptsandtechnologiesareemployedtoservecustomersandempowerstoresandemployees.Byreinforcingthehumanresourcesfoundation,optimizingorganizationalstructures,andimplementingprecisestaffinginstores,theCompanycontinuallyimprovesbusinessefficiency,organizationaleffectiveness,andtalentdensity.Byreconstructinganewservicemodelforfull-channel,fulllifecyclehealthmanagement,theCompanyaimstomakesubstantialcontributionstopublichealthandwell-being,positioningitselfasthetrustedandpreferredpharmacyforcustomers.(iii)Businessplan"√Applicable""□Notapplicable"
1.Expandingstorenetwork
Undertheoverallstrategicplanof“regionalfocusandsteadyexpansion,”theCompanywillimplementacity-specificexpansionstrategyinlinewithcurrentindustrytrends.Throughiterativesiteselectionmechanisms(commercialdistrictpositioningmethod),customerflowtestingsystems,andsalesforecastingmodels,theCompanycontinuouslyrefinestheaccuracyofstorelocationselection,improvingefficiencyandquality.Thisapproachenablesrationalandefficientstorenetworklayout,steadilyincreasingregionalmarketshareandconcentration.
2.Innovatingbusinessmodels
TheCompanywillcontinueinnovatingtheonline-offline-integratedefficientoperatingsystemforexpansion,operations,merchandises,manpower,andIT.Itaimstocreateindustry-leadingnewretailbusinessmodelsandintelligentsupplychainsystems,developawarm,professional,precise,andefficientomni-channelmembershipoperationsystem,completethetransformationofpeople,goods,andplacesundernewformats,acceleratetheconstructionofadirectfranchisesystem,andcomprehensively
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innovateinhealthproductcategoriesandnewservicebusinessmodels.
3.ExpandingproductcategoriesandoptimizingthesupplychainmanagementsystemThroughcontinuousoptimizationandexpansionofproductcategories,theCompanyisbuildingadifferentiatedproductsystemwithfull-categorycoverageandcontrollablecostsandchannels.Itisestablishingaproduct-ledsalesmanagementsystem,strengtheningproductoptimizationmechanisms,anddevelopingafulllifecycleproductmanagementsystembasedoncategoryplanning.TheCompanyaimstoincreasemerchandisesatisfactionfillrate,reduceinventoryturnover,andcreateanefficient,intelligentcategorymanagementandsupplychainmanagementsystem.
4.Buildingahigh-performanceorganizationandtalentdevelopmentsystemInresponsetonewexternalenvironmentsandcorporatedevelopmentstages,theCompanyisfullyimplementingitscorporateculture,reflectingculturalorientationintalentselection,development,utilization,andretention,guidingemployeestowardsself-motivation.Throughhumanresourcesystemrestructuring,storestaffingreview,organizationalstructureoptimization,anddigital-drivenapproaches,theCompanyisreconstructingitsemployeecompensationandincentivesystem,buildinganefficienttalentdevelopmentsystem,andcreatingclearcareerdevelopmentpathsforemployees.Throughhigh-leveltalentcultivationandechelonbuilding,theCompanyaimstoincreasetalentdensity,optimizethetalentdevelopmentecosystem,andcreateahigh-performanceorganizationwitheffectivetalentcultivationandmanagementsystems.
5.CreatinganefficientdigitalsystemforqualityservicesFocusingoncustomer-centricoperationalservices,efficientandagilesupplychaincapabilities,andeffectiveinnovativeorganizationaltalentbuildingmechanisms,theCompanyiscommittedtoachievingindustry-leadinglevelsofdigitaloperations.Basedonthestoreservicemodel,theCompanywillbuildadigitalpharmaceuticalonlineoperationmodelthatintegratespeople,merchandises,andvenuestocreateahigh-qualityservicenetworkandimproveworkefficiency.Byapplyingdigitalmeansinnewstoreexpansion,M&A,andfranchising,theCompanywillproceedthedigitalizationofthebusinessofYifengPharmaceuticalsandHengxiutang.Thismovewillopenuptheupstreamanddownstreamchainsofthepharmaceuticalindustry,providedigitalsupportfortheconstructionofthepharmaceuticalindustrynetwork,createanintelligentandefficiente-commerceoperationandmedicalprescriptionsystem,improveoperationalefficiency,andreducefulfillmentcosts.(iv)Potentialrisks"√Applicable""□Notapplicable"
1.IndustrypolicyriskThedevelopmentofthepharmaceuticalretailindustryisregulatedandaffectedbynationalpolicies.AsChina’sadministrationstandardsforthepharmaceuticalretailindustryhavebeenraisedyearbyyear,businessoperationsarefacinghigherrequirements.Asthenewhealthcarereformgoesdeeper,policiessuchasthepublichospitalreform,zero-mark-updrugs,thetwo-invoicesystem,andunifiedplanningforoutpatientshavebeenrolledoutinfullswing.Atthesametime,industryregulationisincreasinglystringent.IftheCompany’sbusinessmanagementandinternaloperationsystemcannotbepromptly
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adjustedagainstregulatoryandindustrypolicies,theCompanyislikelytofacebusinessrisks.Responses:TheCompanywillcloselymonitorchangesinnationalpoliciesandenhancetheunderstandingofindustrylawsandregulations.Itwillplanandrespondinaforward-lookingway.Itwillseizetheopportunitiesandrisetothechallengesfromchangesintheindustryby(1)adjustingitsbusinessandmanagementmodel,(2)upgradingitsinternalstandardizedgovernance,and(3)promotingprofessionalservicesamongemployeesandinnovatinginmerchandisesandthebusinessmodel.
2.DrugsafetyrisksDrugsafetyencompassesallstagesofdrugproduction,sales,distribution,anduse,withpotentialrisksarisingatanystage.TheprocurementofdrugsfromnumerousmanufacturersandwholesalerspresentsariskiftheCompanyfailstopromptlydetectqualityorsafetyissues.ThiscouldresultinliabilitiesandadverselyaffecttheCompany'sbrandreputation.ResponsemeasuresincludecontinuouslyenhancingandstrictlyenforcingtheCompany'sinventorymanagementsystemsandstrengtheningGSPqualitymanagementstandards.Throughproactivetestingandothermeasures,theCompanyintensifiesthequalityassessmentandmanagementofsuppliers,particularlyfornewlyintroducedproducts.TheCompany'squalitymanagementdepartmentconsistentlybolsterstraining,coaching,inspection,andevaluationofstoreemployees.
3.RiskofmoreintensemarketcompetitionChina’spharmaceuticalretailindustryischaracterizedbyalowmarketconcentration,andtheindustryishighlycompetitive.Inparticular,inrecentyears,large-scalepharmacychainsintheindustryhaveexpandedtheirmarketingnetworktootherregionsthroughorganicexpansionandM&A.Theindustryhasseenhighermarketconcentration,andthecompetitionamongretailpharmacieshasbecomefiercer.Somelargenationalandregionalchainsareemerging.Theyaregrowingrapidlyonthebackoftheiradvantagesincapital,brand,andsupplychainmanagement.Atthesametime,withthecontinuousdevelopmentofprimary-levelhealthcareinstitutions,consumergroupsthatshopmostontheInternetandmobileterminalsaregraduallycomingintobeing.Competitionamongretailersisbecomingincreasinglyfierce.Throughtheyears,theCompanyhasaccumulatednumerousconsumers,marketingchannels,andupstreamsuppliers,gainedhighbrandvisibilityandreputation,andachievedaleadingedgeinthemarketsofCentralSouth,East,andNorthChina.However,withmarketchangesandintensifiedcompetition,itisanewchallengefortheCompanytofurtherexpanditsmarketshareandprofitabilityinitsdominantregions.
Responses:First,theCompanywillcontinuetostrengthenitsadvantage:refined,systematicanddigitalmanagement.Secondly,theCompanywillacceleratetheexpansionofitsstorenetworkandfocuseddevelopmentthrough“newopenings+M&A+franchising”.Atthesametime,theCompanywillembracemarketchangesandinnovateitsbusinessmodel.Itwillseekdevelopmentbothonlineandofflinethroughthetrialsandpromotionoftheonline-offline-integratednewretailmodel.Itwillpilotinitiativessuchasdevelopingthenewbusinessformatofhealthpharmacythroughhealthmanagementservicesandbusinessextension,soastocontinuouslyimprovetheCompany’soverallcompetitivestrengthandmaintainandexpanditsregionalcompetitiveadvantages.
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4.Riskofacquiredstores’businessfailingexpectationsAgainstthegeneraltrendofM&Aintheindustry,theCompanyhasdevelopedtheexpansionstrategyof“newopenings+M&A+franchising”.TheCompany’spreviousM&Aprojectshaveallachievedfinancialperformanceexpectations.Nevertheless,theprofitabilityofM&Aprojectsisaffectedbymultiplefactorssuchasthepolicyenvironment,marketdemand,andoperations.Intheeventofsignificantadversechangesinpolicies,changesinthepurchasinghabitsofconsumers,ormajoradverseeventsthatcannotberesistedinthefuture,theacquiredstores’businessmayfailexpectations,resultingariskofgoodwillimpairment,whichwilladverselyaffecttheCompany’sfinancialperformanceandcauselossestoallshareholders.
Responses:First,theCompanywillstrengthentheauditandassessmentoftheM&Atargets,andstrictlyselectM&AtargetsthatpresentexcellentqualificationsandcomplementwiththeCompanyinthemarket.Secondly,theCompanywillestablishaprofessionalM&AintegrationteamtostandardizeandstreamlineM&Aintegrationandoperationalmanagementinlaterstages.Inthisway,itwillseamlesslyintegratetheM&AtargetwiththeCompany’steamculture,managementsystem,andsupplychainsystem,andensurethecontinuousimprovementoftheoperatingperformanceoftheacquiredstores.
5.RiskofdilutionofhumanresourcesasaresultoftheCompany’srapiddevelopment
ProfessionalmanagementteamandcustomerserviceisoneofthecoreelementsoftheCompany’ssustainable,healthy,andefficientoperation.Inthecourseofrapiddevelopment,iftheCompanyfailstomeettheneedsofitsfuturerapiddevelopmentintalentintroductionandpersonneltraining,oriftherearefailuresintalentappointment,pooling,ormanagementleadingtoalossoftalent,itwilladverselyaffecttheCompany’sfutureexpansionandbusinessoperations.
Responses:TheCompanywillintensifyitseffortsinrecruitment,talentpooling,andpersonneltraining.Itwillco-hosttheYifengPharmacyClasswithuniversitiesandcollegestomeetthedemandforfrontlineprofessionalworkersatstores.ItwilllaunchtheManagementTraineeprogramtomeetthedemandformiddleandseniormanagersfortherapiddevelopmentoftheCompany.Itwillimproveitsemployeecareerdevelopmentchannelsandequityincentivemechanismtoretainandattractexperts.Itwillimprovethetrainingsystemandnurtureprofessionalsandpeoplewithcompoundcapabilitiesinpharmacy,marketing,information,logistics,andmanagementtomeetthedemandforhumanresourcesfortheCompany’srapiddevelopment.(v)Others"□Applicable""√Notapplicable"VII.InformationnotdisclosedbytheCompanyaspertheguidelinesduetonon-applicabilityofthe
guidelinesorforspecialreasonssuchasstatesecretsortradesecretsandthereasonsthereof"□Applicable""√Notapplicable"
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SectionIV.CorporateGovernanceI.Overviewofcorporategovernance"√Applicable""□Notapplicable"DuringtheReportingPeriod,theCompanyregulateditsoperationsbycontinuouslyimprovingitscorporategovernancestructureandinternalcontrolsysteminstrictaccordancewiththeCompanyLaw,theSecuritiesLaw,theCodeofCorporateGovernanceofListedCompanies,theRulesGoverningtheListingofStocksonShanghaiStockExchange,andotherlaws,regulations,andrules.TheCompany’sGeneralMeetingofShareholders,BoardofDirectors,andBoardofSupervisorsoperatedagainststandards,anditsdirectors,supervisors,andseniormanagementperformedtheirdutiesdiligently.ShareholdersandtheGeneralMeetingofShareholders.DuringtheReportingPeriod,theCompanyheld5GeneralMeetingsofShareholders,wherevotingwasperformedbothonsiteandonline.TheGeneralMeetingsofShareholderswereconvenedandheldinstrictaccordancewiththeArticlesofAssociationandtheRulesofProcedureforGeneralMeetingofShareholders,ensuringallshareholders’legitimaterightsandinterests,inparticular,toensurethatminorityshareholdersenjoyequalstatusandfullyexercisetheirrights.TheCompanytakesshareholders’visitsandinquiriesseriouslyandprovidesthemconvenientaccesstoinformationabouttheCompany’soperations.ControllingshareholdersandthelistedCompany.TheCompanyanditscontrollingshareholdersmaintainindependenceintermsofpersonnel,assets,finance,institutions,andbusiness.TheCompany’sBoardofDirectors,BoardofSupervisors,andinternalcontrolinstitutionsoperateindependently.ThecontrollingshareholdersobserverulesandhavenotinterveneddirectlyorindirectlyintheCompany’sdecision-makingoroperatingactivitiesbeyondtheGeneralMeetingofShareholders.DirectorsandtheBoardofDirectors.TheCompany’sBoardofDirectorscomprises9members,including3independentdirectors.TheBoardhasestablishedfourcommittees:theStrategyandSustainableDevelopmentCommittee,theAuditCommittee,theNominatingCommittee,andtheRemunerationandAppraisalCommittee.AllcommitteemembersareappointedfromwithintheBoard.TheCompany’sBoardofDirectorsstrictlyobservestheCompanyLaw,theArticlesofAssociation,andtheRulesofProcedureoftheBoardofDirectors.ThedirectorsattendthemeetingsoftheBoardofDirectorsandtheGeneralMeetingsofShareholdersattentivelyandresponsibly.Theyarefamiliarwithrelevantlawsandregulations;understanddirectors’rights,obligations,andresponsibilities;andfulfilltheirduties,givingfullplaytothekeyroleofdirectorsintheCompany’soperationsandmanagement.InJune2024,theCompanycompletedthere-electionoftheBoardofDirectors,withatotalof17boardmeetingsheldduringtheReportingPeriod.
SupervisorsandtheBoardofSupervisors.TheCompany’sBoardofSupervisorsconsistsof3supervisors,oneofwhomisanemployeerepresentativesupervisor.TheCompany’sBoardofSupervisorsstrictlyobservestheCompanyLaw,theArticlesofAssociation,andtheRulesofProcedureoftheBoardofSupervisors.Itconscientiouslyfulfillsitsduties,actsresponsiblytotheshareholders,andsupervisestheCompany’sday-to-dayoperations,thedirectorsandseniormanagement’sconduct,thelegalcomplianceoftheCompany’sfinance.InJune2024,theCompanycompletedthere-electionofthe
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BoardofSupervisors,withatotalof12supervisoryboardmeetingsheldduringtheReportingPeriod.Regardingperformanceevaluationandincentiverestraintmechanisms:TheCompanyhasestablishedaneffectiveperformanceappraisalsystemandafair,transparentincentiverestraintmechanism,whichwillbecontinuouslyrefined.
Informationdisclosureandinvestorrelationsmanagement.TheCompanyhasdevelopedanInformationDisclosureManagementSystemandanInvestorRelationsManagementSystem,andhassetuptheSecuritiesandInvestmentDepartmentpursuanttotheRulesGoverningtheListingofStocksonShanghaiStockExchange.Itfulfillsitsinformationdisclosureobligationsinaccordancewiththelawandensuresthatitsdisclosureistimely,accurate,andcomplete,thuspracticallysafeguardingminorityshareholders’interests.TheCompanycontinuouslyimprovesitsinvestorrelationsmanagementandenhancesitscommunicationwithinvestorsthroughvariousonlineandofflinemethods,suchasconductingfinancialperformancebriefings,hostingvisitstolistedcompanies,receivingshareholdervisits,andrespondingtoshareholderinquiriesoverthephone.Presenceofsignificantdifferencesbetweencorporategovernanceandthelaw,administrativeregulations,andtheCSRC’sregulationsonthegovernanceoflistedcompanies;ifyes,pleasespecifythereason(s)"□Applicable""√Notapplicable"II.SpecificmeasurestakenbytheCompany’scontrollingshareholderandactualcontrollertoensuretheindependenceoftheCompany’sassets,personnel,finances,institutions,andbusiness,aswellassolutionsfortheimpactontheCompany’sindependence,theirprogress,andsubsequentworkplans"√Applicable""□Notapplicable"TheCompany’scontrollingshareholder,NingboMeishanFreeTradePortAreaHouxinVentureCapitalPartnership(LimitedPartnership),anditsactualcontroller,GaoYi,fulfilltheirobligationsinstrictaccordancewiththeSecuritiesLawandotherapplicablelawsandregulationsandmaintaintheirindependenceintermsofassets,personnel,finance,institutions,andbusiness.
(i)Assetindependence
TheCompanypossessesacompleteoperationalmanagementsystemandlogisticsfacilitiesforitsbusinessoperations,legallyownsorhastherighttouseassetsrelatedtoitsbusinessoperationsincludingland,properties,andequipment,andhasindependentmerchandiseprocurement,distribution,andsalessystems.TheownershipofassetsoftheCompanyanditscontrollingshareholder,actualcontroller,andotherrelatedpartiesisclear.TheCompanyhasfullcontrolanddominanceoverallofitsassets.TheCompanydoesnothaveanyfundsorassetstiedupbyitsshareholders,actualcontroller,andothercompaniesundertheircontrol.
(ii)Personnelindependence
TheCompany’sdirectors,supervisors,andseniormanagementareallelectedorappointedinstrictaccordancewiththeproceduressetoutintheCompanyLawandtheArticlesofAssociationoftheCompany.TheCompany’sPresident,ExecutivePresident,VicePresident,AssistantPresident,ChiefFinancialOfficer,SecretaryoftheBoardofDirectors,andotherseniormanagementareallworking
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full-timeattheCompany(includingitssubsidiaries)andreceivingremuneration.Noneofthem(1)holdspositionsotherthandirectorandsupervisoratorreceivesremunerationfromtheCompany’scontrollingshareholder,actualcontroller,andothercompaniesundertheircontrol;or(2)servesatothercompanieswiththesameorsimilarbusinessastheCompany.TheCompany’sfinancialpersonneldonotholdanypart-timejobsattheCompany’scontrollingshareholder,actualcontroller,andothercompaniesundertheircontrol.TheCompanyhasanindependentworkforceandhasestablishedanindependentlaborrelations,personnel,andwagemanagementsystem.TheCompanyhassignedlaborcontractswithallemployees.ItsHumanResourcesDepartmentisindependentlyresponsibleforemployees’employment,assessment,rewards,andpenalties.TheCompanyisindependentfromitscontrollingshareholder,actualcontroller,andothercompaniesundertheircontrolinemployees’socialinsuranceandcompensation,andmanagestheminseparatebooks.
(iii)FinancialindependenceTheCompanyhassetupanindependentFinancialDepartmentwithfull-timefinancialpersonnelandestablishedanindependentfinancialaccountingsystem.Itmakesfinancialdecisionsindependentlyandhasastandardizedfinancialaccountingsystemandafinancialmanagementsystemforitssubsidiaries.TheCompanypaystaxesindependentlyandopensindependentbankaccountsinaccordancewiththelaw,anddoesnotmixtaxesorsharebankaccountswithitscontrollingshareholder,actualcontroller,andothercompaniesundertheircontrol.TheCompanyhasnotprovidedguaranteesforitscontrollingshareholder,actualcontroller,andothercompaniesundertheircontrol,andhasnofundstiedupbyitscontrollingshareholder,actualcontroller,andothercompaniesundertheircontrolbywayofborrowing,repaymentofdebts,advancementoffunds,orotherwise.
(iv)InstitutionalindependenceTheCompanyhasestablishedacompletecorporategovernancestructurecomprisingtheGeneralMeetingofShareholders,theBoardofDirectors,theBoardofSupervisors,andthemanagement.TheCompanyhasestablishedindependentandcompleteinternalmanagementinstitutionsinlinewithitsstatusandneedsinoperationsanddevelopment.Ithasdefinedthefunctionsofeachinstitutionanddevelopedrespectiveinternalmanagementandcontrolsystems.TheseinstitutionsexercisetheirpowersandfunctionsindependentlyinaccordancewiththeArticlesofAssociationandtheinternalmanagementsystem.Thereisnosuperior-subordinaterelationshipbetweenthemandtheCompany’scontrollingshareholder,actualcontroller,andothercompaniesundertheircontrolandtheirfunctionaldepartments,noristhereanyinstitutionalconfusionorco-location.
(v)BusinessindependenceTheCompanymaintainsafullyindependentandcomprehensivebusinesssystem.Alloperationalaspects,includingprocurement,logistics,distribution,andsales,functionindependentlyfromthecontrollingshareholder,actualcontroller,andothercompaniesundertheircontrol.Therearenoconflictsofinterestintermsofindustrycompetitionorunfairrelatedpartytransactions.
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TheCompany’scontrollingshareholder,actualcontroller,andotherentitiesundertheircontrolengaginginthesameorsimilarbusinessastheCompany,aswellastheimpactofhorizontalcompetitionorsignificantchangesinsuchcompetitionontheCompany,resolutionstakenandtheirprogress,andsubsequentresolvingplans"□Applicable""√Notapplicable"III.OverviewoftheGeneralMeetingofShareholders
| Session | Dateofconvening | SearchIndexontheDesignatedPublishingWebsiteoftheResolution | DisclosureDateofResolutionPublishing | ResolutionoftheMeeting |
| 1stExtraordinaryGeneralMeetingofShareholdersin2024 | January29,2024 | NoticeontheResolutionofthe1stExtraordinaryGeneralMeetingofShareholdersin2024ofYifengPharmacy(2024-005)onthewebsiteoftheShanghaiStockExchange | January30,2024 | Detailstobefoundin“DetailsoftheGeneralMeetingofShareholders” |
| AnnualGeneralMeetingofShareholdersfor2023 | May20,2024 | NoticeontheResolutionoftheAnnualGeneralMeetingofShareholdersfor2023ofYifengPharmacy(2024-045)onthewebsiteoftheShanghaiStockExchange | May21,2024 | Detailstobefoundin“DetailsoftheGeneralMeetingofShareholders” |
| 2ndExtraordinaryGeneralMeetingofShareholdersin2024 | June25,2024 | NoticeontheResolutionofthe2ndExtraordinaryGeneralMeetingofShareholdersin2024ofYifengPharmacy(2024-059)onthewebsiteoftheShanghaiStockExchange | June26,2024 | Detailstobefoundin“DetailsoftheGeneralMeetingofShareholders” |
| 3rdExtraordinaryGeneralMeetingofShareholdersin2024 | September23,2024 | NoticeontheResolutionofthe3rdExtraordinaryGeneralMeetingofShareholdersin2024ofYifengPharmacy(2024-093)onthewebsiteoftheShanghaiStockExchange | September24,2024 | Detailstobefoundin“DetailsoftheGeneralMeetingofShareholders” |
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| 4thExtraordinaryGeneralMeetingofShareholdersin2024 | December16,2024 | NoticeontheResolutionofthe4thExtraordinaryGeneralMeetingofShareholdersin2024(2024-128)onthewebsiteoftheShanghaiStockExchange | December17,2024 | Detailstobefoundin“DetailsoftheGeneralMeetingofShareholders” |
ExtraordinaryGeneralMeetingofShareholdersrequestedbypreferredshareholderswhosevotingrightshavebeenrestored"□Applicable""√Notapplicable"DetailsoftheGeneralMeetingofShareholders"√Applicable""□Notapplicable"
1.OnJanuary29,2024,theCompanyconvenedits1
st
ExtraordinaryGeneralMeetingofShareholdersin2024.Themeetingwasattendedby21shareholdersandproxies,representing699,775,348shareswithvotingrights,whichaccountedfor69.2449%ofthetotalshareswithvalidvotingrights.Themeetingdeliberatedandapprovedtwoproposals:(1)theProposalonChangingRegisteredCapital,ExpandingBusinessScope,andAmendingtheArticlesofAssociation,and(2)theProposalonAmendingtheIndependentDirectorWorkingSystem.DetailscanbefoundintheNoticeontheResolutionofthe1
st
ExtraordinaryGeneralMeetingofShareholdersin2024(2024-005)disclosedattheShanghaiStockExchangeonJanuary30,2024.
2.OnMay20,2024,theCompanyhelditsannualGeneralMeetingofShareholdersin2023.Themeetingwasattendedby54shareholdersandproxies,representing732,686,267shareswithvotingrights,whichaccountedfor72.5015%ofthetotalshareswithvalidvotingrights.Themeetingdeliberatedandapprovednineproposals,including:(1)theProposalon2023AnnualReportoftheBoardofDirectors,(2)theProposalon2023AnnualReportoftheBoardofSupervisors,(3)theProposalonProvidingGuaranteesforSubsidiaries’ApplicationforBankCredits,and(4)theProposalonUsingIdleOwnFundstoEntrustFinancialmanagement.DetailscanbefoundintheNoticeontheResolutionoftheAnnualGeneralMeetingofShareholdersfor2023(2024-045)disclosedattheShanghaiStockExchangeonMay21,2024.
3.OnJune25,2024,theCompanyconvenedits2
nd
ExtraordinaryGeneralMeetingofShareholdersin2024.Themeetingwasattendedby49shareholdersandproxies,representing891,389,413shareswithvotingrights,whichaccountedfor73.5047%ofthetotalshareswithvalidvotingrights.Themeetingdeliberatedandapprovedfiveproposals:(1)theProposalonRemuneration(Allowance)SchemeforDirectorsofthe5thBoardofDirectors,(2)theProposalonRemuneration(Allowance)SchemeforSupervisorsofthe5thBoardofSupervisors,(3)theProposalonElectionofNon-IndependentDirectorsofthe5thBoardofDirectors,(4)theProposalonElectionofIndependentDirectorsofthe5thBoardofDirectors,and(5)theProposalonElectionofSupervisorsofthe5thBoardofSupervisors.DetailscanbefoundintheNoticeontheResolutionofthe2
nd
ExtraordinaryGeneralMeetingofShareholdersin2024(2024-059)disclosedattheShanghaiStockExchangeonJune26,
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2024.
4.OnSeptember23,2024,theCompanyconductedits3
rd
ExtraordinaryGeneralMeetingofShareholdersin2024.Themeetingwasattendedby395shareholdersandproxies,representing849,179,650shareswithvotingrights,whichaccountedfor70.0379%ofthetotalshareswithvalidvotingrights.Themeetingdeliberatedandapprovedfourproposals:(1)theProposalon2024Semi-AnnualProfitDistributionPlan,(2)theProposalonAmendmentstotheArticlesofAssociation,(3)theProposalonIncreaseinBankComprehensiveCreditLines,and(4)theProposalonProvidingGuaranteesforSubsidiaries’ApplicationforBankCredits.DetailscanbefoundintheNoticeontheResolutionofthe3
rd
ExtraordinaryGeneralMeetingofShareholdersin2024(2024-093)disclosedattheShanghaiStockExchangeonSeptember24,2024.
5.OnDecember16,2024,theCompanyheldits4
th
ExtraordinaryGeneralMeetingofShareholdersin2024.Themeetingwasattendedby381shareholdersandproxies,representing896,809,071shareswithvotingrights,whichaccountedfor73.9677%ofthetotalshareswithvalidvotingrights.Themeetingdeliberatedandapprovedtwoproposals:(1)theProposalonChangingRegisteredCapital,CompanyType,AmendingtheArticlesofAssociation,andHandlingIndustrialandCommercialRegistrationChanges,and(2)theProposalonProvidingGuaranteesforSubsidiaries’ApplicationforBankCredits.DetailscanbefoundintheNoticeontheResolutionofthe4
th
ExtraordinaryGeneralMeetingofShareholdersin2024(2024-128)disclosedattheShanghaiStockExchangeonDecember17,2024.
/
IV.Detailsofdirectors,supervisors,andseniormanagement(i)Changesinshareholdingsandremunerationofincumbentandoutgoingdirectors,supervisors,andseniormanagementduringtheReportingPeriod
√Applicable□Notapplicable
Unit:Share
| Name | Position | Gender | Age | StartingDateofOffice | Termenddate | NumberofSharesHeldattheBeginningoftheYear | NumberofSharesHeldattheEndoftheYear | Increase/decreaseinSharesDuringtheYear | ReasonfortheIncrease/decrease | TotalPre-taxRemunerationReceivedfromtheCompanyDuringtheReportingPeriodCN?10,000 | WhetherremunerationwasobtainedfromtherelatedpartiesoftheCompany |
| GaoYi | ChairmanandPresident | Male | 57 | 2024.6.25 | 2027.6.24 | 117,901,056 | 141,481,267 | 23,580,211 | Conversionofcapitalreservesintosharecapital | 287.63 | No |
| GaoFeng | Director | Male | 54 | 2024.6.25 | 2027.6.24 | 0 | 0 | 0 | 140.61 | No | |
| GaoYoucheng | DirectorandExecutivePresident | Male | 57 | 2024.6.25 | 2027.6.24 | 168,000 | 201,600 | 33,600 | Conversionofcapitalreservesintosharecapital | 253.61 | No |
| XuXin(Leaveofficeonexpiry) | Director | Female | 58 | 2021.3.29 | 2024.6.25 | 0 | 0 | 0 | 0 | No | |
| YangRongfeng | Director | Male | 39 | 2024.6.25 | 2027.6.24 | 0 | 0 | 0 | 0 | No | |
| ChaiMingang | Director | Male | 56 | 2024.6.25 | 2027.6.24 | 0 | 0 | 0 | 20.00 | No | |
| YeWeitao(Leaveofficeonexpiry) | Director | Male | 52 | 2021.3.29 | 2024.6.25 | 0 | 0 | 0 | 10.00 | No | |
| XiFeng | Director | Male | 47 | 2024.6.25 | 2027.6.24 | 0 | 0 | 0 | 10.00 | No | |
| YanAimin(Leaveofficeon | IndependentDirector | Male | 62 | 2021.3.29 | 2024.6.25 | 0 | 0 | 0 | 6.00 | No |
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| expiry) | |||||||||||
| WangHongxia(Leaveofficeonexpiry) | IndependentDirector | Female | 46 | 2021.3.29 | 2024.6.25 | 0 | 0 | 0 | 6.00 | No | |
| YiLanguang(Leaveofficeonexpiry) | IndependentDirector | Male | 49 | 2021.3.29 | 2024.6.25 | 0 | 0 | 0 | 6.00 | No | |
| QinZheng | IndependentDirector | Male | 56 | 2024.6.25 | 2027.6.24 | 0 | 0 | 0 | 6.00 | No | |
| HuangChun’an | IndependentDirector | Male | 42 | 2024.6.25 | 2027.6.24 | 0 | 0 | 0 | 6.00 | No | |
| WangXiaoyan | IndependentDirector | Male | 49 | 2024.6.25 | 2027.6.24 | 0 | 0 | 0 | 6.00 | No | |
| ChenBin | ChairmanoftheBoardofSupervisors | Male | 59 | 2024.6.25 | 2027.6.24 | 0 | 0 | 0 | 5.00 | No | |
| LiuYi | Supervisor | Male | 52 | 2024.6.25 | 2027.6.24 | 0 | 0 | 0 | 10.00 | No | |
| ZhangEnbo(Leaveofficeonexpiry) | EmployeeSupervisorRepresentative | Male | 30 | 2021.3.29 | 2024.6.25 | 2,002 | 2,402 | 400 | Conversionofcapitalreservesintosharecapital | 21.38 | No |
| XiaMuzi | EmployeeSupervisorRepresentative | Female | 29 | 2024.6.25 | 2027.6.24 | 0 | 0 | 0 | 9.95 | No | |
| GuWei | ExecutiveVicePresident | Male | 46 | 2025.1.27 | 2027.6.24 | 0 | 4,000 | 4,000 | Secondarymarkettrading | ||
| WangFei(Off-office) | VicePresident | Male | 40 | 2024.6.25 | 2025.4.2 | 354,060 | 424,872 | 70,812 | Conversionofcapitalreservesintosharecapital | 194.72 | No |
| Wan | VicePresident | Female | 52 | 2024.6.25 | 2027.6.24 | 94,850 | 113,820 | 18,970 | Conversionof | 186.92 | No |
/
| Xuemei | capitalreservesintosharecapital | ||||||||||
| ZhangJia | VicePresident | Male | 44 | 2024.6.25 | 2027.6.24 | 140,000 | 168,000 | 28,000 | Conversionofcapitalreservesintosharecapital | 159.26 | No |
| WangYonghui | VicePresidentandChiefFinancialOfficer | Male | 50 | 2024.6.25 | 2027.6.24 | 501,200 | 601,440 | 100,240 | Conversionofcapitalreservesintosharecapital | 229.22 | No |
| ZhangZhaoxu | VicePresident | Male | 52 | 2024.6.25 | 2027.6.24 | 67,500 | 81,000 | 13,500 | Conversionofcapitalreservesintosharecapital | 207.52 | No |
| XiaoZaixiang | VicePresident | Male | 68 | 2024.6.25 | 2027.6.24 | 212,300 | 254,760 | 42,460 | Conversionofcapitalreservesintosharecapital | 122.40 | No |
| YanJun | VicePresident | Male | 43 | 2024.6.25 | 2027.6.24 | 83,000 | 99,600 | 16,600 | Conversionofcapitalreservesintosharecapital | 194.26 | No |
| HuJianxia | VicePresident | Female | 44 | 2024.6.25 | 2027.6.24 | 28,000 | 33,600 | 5,600 | Conversionofcapitalreservesintosharecapital | 133.92 | No |
| DengJianqin(Leaveofficeonexpiry) | ChiefFinancialOfficer | Female | 45 | 2021.3.29 | 2024.6.25 | 119,756 | 143,707 | 23,951 | Conversionofcapitalreservesintosharecapital | 56.05 | No |
| FanWei | SecretaryoftheBoardofDirectors | Male | 44 | 2024.6.25 | 2027.6.24 | 42,000 | 50,400 | 8,400 | Conversionofcapitalreservesintosharecapital | 87.26 | No |
| Total | / | / | / | / | / | 119,713,724 | 143,660,468 | 23,946,744 | / | 2,375.71 | / |
Note1:Thetotalpre-taxremunerationreceivedfromtheCompanyduringthereportingperiodisthetotalremunerationreceivedbydirectors,supervisors,andseniormanagementintheirofficeduringtheReportingPeriod.Note2:TheCompanycompleteditsre-electionprocessinJune2024.Thefollowingmembersofthe4thBoardofDirectorsleftofficeonexpiry:
Non-independentdirectorsMs.XuXinandMr.YeWeitao,andindependentdirectorsMr.YanAimin,Ms.WangHongxia,andMr.YiLanguang.Fromthe4thBoardofSupervisors,employeerepresentativesupervisorMr.ZhangEnboleftofficeonexpiry.SeniorexecutiveMs.DengJianqinleftofficeonexpiry.
/
| Name | CareerAutobiography |
| GaoYi | Mr.GaoYi,borninOctober1968,isofChinesenationalityandhasnopermanentresidencyoverseas.Heholdsamaster’sdegreeinBusinessAdministration.Heisadeputytothe14thPeople’sCongressofHunanProvinceandthefounderofYifengPharmacyChainCo.,Ltd.,andcurrentlyservesasChairmanandPresidentoftheCompany.HehasbeenrecognizedasaMeritoriousFigureofChina’s40-YearReformandOpeningUpofthePharmaceuticalIndustry,theMostInfluentialPersoninChina’sPharmaciesinthePastDecade,oneofChina’sTop10LeadersinChainPharmacies,oneofthe9thHunan’sTop10EconomicAchievers,andoneofthe10MostTrustedEntrepreneursinHunan’sPharmaceuticalIndustry. |
| GaoFeng | Mr.GaoFeng,borninSeptember1971,isofChinesenationalityandhasnopermanentresidencyoverseas.Heholdsacollegedegreeandthetitleofpharmacist.HecurrentlyservesastheCompany’sdirectorandholdsthepositionofGeneralManageratHunanFenggaoIndustrialInvestmentCo.,Ltd.andHunanYifengPharmaceuticalHoldingCo.,Ltd. |
| GaoYoucheng | Mr.GaoYoucheng,borninFebruary1968,isofChinesenationalityandhasnopermanentresidencyoverseas.Heholdsamaster’sdegreeinBusinessAdministration.HepreviouslyservedasManager,DeputyPartySecretary,andExecutiveDeputyGeneralManageroftheShanghaibranchofChangdeNativeProductsCorporation;ManagerofFoodProcurementattheheadquartersandDeputyGeneralManageroftheShoppingPlazaofBetterLifeCommercialChainShareCo.,Ltd.;andExecutiveVicePresidentofYifengPharmacyChainCo.,Ltd.HecurrentlyservesastheCompany’sdirectorandExecutivePresident. |
| YangRongfeng | Mr.YangRongfeng,borninJune1986,isofChinesenationalityinHongKongandhasnopermanentresidencyoverseas.Heholdsabachelor’sdegreefromtheUniversityofHongKong.HepreviouslyservedasanaccountantatPwCHongKongandasPost-investmentManagementDirectorandPartneratCapitalTodayGroup(HK)Limited.SinceFebruary2023,hehasbeenservingasaPartneratCapitalTodayGroup(HK)Limited. |
| ChaiMingang | Mr.ChaiMingang,borninFebruary1969,isofChinesenationalityandhaspermanentresidencyoverseas.Heholdsabachelor’sdegreeinEconomicsfromFudanUniversity,amaster’sdegreeinInternationalRelationsfromtheUniversityofCalifornia,andamaster’sdegreeinBusinessAdministrationfromtheUniversityofChicago.HepreviouslyservedasGlobalPartnerandHeadofHumanResourceConsulting,China,atTowersPerrin;HeadofHumanResourceConsulting,China,atTowersWatson;andExecutiveVicePresidentofYonghuiSuperstores.HecurrentlyservesasPartnerandPresidentofShanghaiKaijieEnterpriseManagementConsultingCo.,Ltd. |
| XiFeng | Mr.XiFeng,borninFebruary1978,isofChinesenationalityandhasnopermanentresidencyoverseas.Heholdsabachelor’sdegreeinLawfromEastChinaUniversityofPoliticalScienceandLawandanMBAfromArizonaStateUniversity.HepreviouslyservedasSeniorLegalDirectoratFosunGroup,GeneralManagerofRiskControlDepartmentatShanghaiLujiazuiFinancialDevelopmentCo.,Ltd.,andDirectoratLujiazuiInternationalTrustCo.,Ltd.HecurrentlyservesasDirector/ChiefRiskOfficeratChinaMinshengJiayeInvestmentCo.,Ltd.andExecutiveDirectoratShanghaiJiacaiMedicalInvestmentManagementCo.,Ltd. |
| QinZheng | Mr.QinZheng,bornin1969,isofChinesenationalityandhasnopermanentresidencyoverseas.HeholdsaPh.D.inEngineeringandaPost-doctorateinManagement.HeisaProfessorandDoctoralSupervisoratHunanUniversity,wherehealsoservesasDirectoroftheBigDataProcessingandIndustryApplicationResearchCenterandDirectoroftheHunanProvincialKeyLaboratoryofBigDataResearchandApplication.HeisamemberoftheCyberspaceSecurityInstructionCommitteeoftheMinistryofEducation,acertifiedexpertofChinaEngineeringEducation,amemberoftheBigDataSpecialCommitteeoftheChinaComputerFederation,amemberoftheIntelligentServiceSpecialCommitteeoftheChineseAssociationforArtificialIntelligence,amemberoftheArtificialIntelligenceandSecuritySpecialCommittee,amemberoftheExpertAdvisoryCommitteeofHunanManufacturingStrongProvinceConstruction,andamemberoftheExpertAdvisoryCommitteeofHunanNetwork |
/
| SecurityandInformatization.HealsoservesasanIndependentDirectorforHunanMendaleHometextileCo.,Ltd.andTalkwebInformationSystemCo.,Ltd. | |
| HuangChun’an | Mr.HuangChun’an,borninAugust1983,isofChinesenationalityandhasnopermanentresidencyoverseas.Heholdsabachelor’sdegreeinLawfromTsinghuaUniversityandanEMBAfromCheungKongGraduateSchoolofBusiness.HepreviouslyservedasaPartneratDachengLawOffices,hecurrentlyservesasaSeniorPartneratChinaCommercialLawFirmandheadsitsChangshabranch.Additionally,heholdspositionsasIndependentDirectoratHengfeiCableCo.,Ltd.andShenzhenGongjinElectronicsCo.Ltd. |
| WangXiaoyan | Mr.WangXiaoyan,borninFebruary1976,isofChinesenationalityandhasnopermanentresidencyoverseas.HeholdsanMBAandisaCertifiedPublicAccountant,CertifiedTaxAgent,andCertifiedInternalAuditor.HepreviouslyservedasaSeniorAuditoratDeloitteToucheTohmatsuCPALtd.,AssistanttoPresidentatGuangxiFenglinWoodIndustryGroupCo.,Ltd.,AuditDirectoratGuangxiYuchaiMachineryGroupCo.,Ltd.,andCFOofGuangzhouZhujiangYunfengInvestmentHoldingCo.,Ltd.HecurrentlyservesastheCFOofBlueriverNutritionCompanyLimited. |
| ChenBin | Mr.ChenBin,borninSeptember1966,isofChinesenationalityandhasnopermanentresidencyoverseas.Heholdsauniversitydegreeandthetitleofpharmacist.HepreviouslyservedasDeputyGeneralManagerofHunanYifengPharmacyChainCo.,Ltd.,GeneralManagerofJiangsuYifengPharmacyChainCo.,Ltd.,andExpansionDirectorofHunanYifengPharmacyChainCo.,Ltd.HealsoservedastheCompany’sExpansionDirector.HecurrentlyservesasChairmanoftheCompany’sBoardofSupervisors. |
| LiuYi | Mr.LiuYi,borninOctober1973,isofChinesenationalityandhasnopermanentresidencyoverseas.HeholdsadoctoratedegreeinEconomics.Hecurrentlyservesasprofessorandmaster’ssupervisorattheSchoolofFinanceandStatisticsofHunanUniversity,DirectoroftheBigDataFinanceResearchCenterofHunanUniversity,andSupervisoroftheCompany. |
| XiaMuzi | Ms.XiaMuzi,borninMarch1996,isofChinesenationalityandhasnopermanentresidencyoverseas.Sheholdsabachelor’sdegree.JoinedtheCompanyinMay2020andcurrentlyservesasthePersoninChargeofthePriceGroupintheMarketingDepartmentoftheCompany'sOperationsCenter. |
| GuWei | Mr.GuWei,borninJanuary1979,isofChinesenationalityandhasnopermanentresidencyoverseas.Heholdsabachelor’sdegreeinInvestmentEconomics.HepreviouslyservedasPresidentofCommunicationBusinessUnitatSuning.com,VicePresidentofSuningSouthChinaRegion,PresidentofSuningCommunicationBusinessUnit,PresidentofSuningOfflineOperationsHeadquarters,PresidentofSuningRetailCloud,andSeniorVicePresidentofSuning.HealsoservedasVicePresidentofHisenseGroup.HecurrentlyservesasExecutiveVicePresidentoftheCompany. |
| WanXuemei | Ms.WanXuemei,borninDecember1973,isofChinesenationalityandhasnopermanentresidencyoverseas.Sheholdsabachelor’sdegree.ShepreviouslyservedasHeadofQualityManagementDepartmentandCommodityDepartment,andDeputyGeneralManagerofOperationsofJiangsuYifengPharmacyChainCo.,Ltd.,andGeneralManagerofJiangsuYifengPharmaceuticalCo.,Ltd.HecurrentlyservesasVicePresidentoftheCompany. |
| ZhangJia | Mr.ZhangJia,borninNovember1981,isofChinesenationalityandhasnopermanentresidencyoverseas.Hereceivedhisbachelor’sdegreeinElectricalEngineeringfromWuhanUniversityandhismaster’sdegreeinInternationalMarketingfromtheUniversityofLeedsintheU.K.HepreviouslyservedaspricemanagerofWalmartChina’sPurchasingDepartment,DirectorofthePurchasingDepartmentandHeadofSkincarePurchasingofWatsonsChina,CMOofYouShengPinJian(Nanjing)Co.,Ltd.,andVicePresidentofSupplyChainofGuangzhouDoraTechnologyCo.,Ltd.(Fordeal).HecurrentlyservesasVicePresidentoftheCompany. |
| WangYonghui | Mr.WangYonghui,borninNovember1975,isofChinesenationalityandhasnopermanentresidencyoverseas.Heholdsamaster’sdegreeinManagementScienceandEngineeringandisaCharteredGlobalManagementAccountant(CGMA).Hepreviouslyservedasinternalauditoratthe |
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| BankofGuangzhou,FinancialDirectorofABB(China)Co.,Ltd.,FinancialManagerofABBXiamenLowVoltageEquipmentCo.,Ltd.,FinancialDirectorofABBLVInstallationMaterialsCo.,Ltd.Beijing,CFOofBeijingLeaderHarvestElectricTechnologiesCo.,Ltd.,andVicePresidentofFinanceandCommerceofJoyGlobal(China)InvestmentCo.,Ltd.HecurrentlyservesasVicePresidentandChiefFinancialOfficeroftheCompany. | |
| ZhangZhaoxu | Mr.ZhangZhaoxu,borninAugust1973,isofChinesenationalityandhasnopermanentresidencyoverseas.Heholdsamaster’sdegreeinManagement.HepreviouslyservedasDirectorofHumanResourcesofConsumerHealthProductsBusinessinChinaatGSKCI,GeneralManagerofHumanResourcesofUrbanDevelopmentBusinessGroupofChinaFortuneLandDevelopmentCo.,Ltd.,andVicePresidentofInnerMongoliaMengniuDairy(Group)Co.,Ltd.HecurrentlyservesasVicePresidentoftheCompany. |
| XiaoZaixiang | Mr.XiaoZaixiang,borninJanuary1957,isofChinesenationalityandhasnopermanentresidencyoverseas.Heholdsamaster’sdegreeandisaseniorengineer.HepreviouslyservedasDirectoroftheSecurityDivision,DeputyDirectoroftheConstructionDepartment,DirectorofthePropertyManagementDepartment,DirectoroftheAdministrativeBusinessDepartment,andViceChairmanoftheLaborUnionoftheChangshaMunicipalBureauofTelecommunications;GeneralManagerofChangshaXindaRealEstateDevelopmentCo.,Ltd.;DeputyDirectoroftheSecurityDivisionoftheHunanProvincialPostBureau;DeputyGeneralManagerofHunanXiangyouJindunAntiTheftAlarmNetworkMonitoringCo.,Ltd.;andPartySecretaryandPresidentofHunanCopoteScienceTechnologyCo.,Ltd.HecurrentlyservesasVicePresidentoftheCompany. |
| YanJun | Mr.YanJun,borninApril1982,isofChinesenationalityandhasnopermanentresidencyoverseas.Heholdsabachelor’sdegreeinComputerSoftware.HepreviouslyservedasasoftwaredevelopmentengineerofAugmentum,R&DSupervisorofShandaNetwork,SupervisorofQualityControlofDianping.com,partnerofWuxiOtakuGame,ManagerofFront-endProduct,ManagerofE-commerceBusiness,andDirectorofMemberCenterofKidswantChildrenProductsCo.,Ltd.,aswellasDirectorofOperationCenterandDirectorofR&DCenterofHaoxiangjiaComfortableIntelligentHouseholdCo.,Ltd.HecurrentlyservesasGeneralManagerofNewRetailBusinessGroup,HeadofDigitalCenter,andAssociatePresidentoftheCompany. |
| HuJianxia | Ms.HuJianxia,borninDecember1981,isofChinesenationality,andhasnopermanentresidencyoverseas.Sheholdsabachelor'sdegreeinPharmacyatSouthwestUniversityandisapharmacist-in-charge.ShepreviouslyservedasStoreManager,RegionalManager,DepartmentManager,DeputyGeneralManagerofOperations,andDirectorofNationalOperationsoftheCompany.ShecurrentlyservesasAssociatePresident,andHeadofOperationsofNationalRegionsoftheCompany. |
| FanWei | Mr.FanWei,borninJuly1981,isofChinesenationalityandhasnopermanentresidencyoverseas.Heholdsamaster’sdegree.HepreviouslyservedasinvestorrelationsmanagerofZTECorporation,DirectoroftheInvestorRelationsOfficeofZoomlionHeavyIndustryScience&TechnologyCo.,Ltd.,machineryindustryanalystofZhongtaiSecuritiesCo.,Ltd.,andDeputyDirectorofInvestorRelationsofS.F.HoldingCo.,Ltd.HecurrentlyservesasSecretaryoftheBoardofDirectorsoftheCompany. |
Otherdetails"□Applicable""√Notapplicable"
/
(ii)Officeofincumbentandoutgoingdirectors,supervisors,andseniormanagementduringtheReportingPeriod
1.Situationofworkperformanceinshareholderentity"□Applicable""√Notapplicable"
2.Situationofworkperformanceinotherentities"√Applicable""□Notapplicable"
| Name | Entity | Positionheldinotherentities | StartingDateofOffice | Termenddate |
| GaoYi | HunanFenggaoIndustrialInvestmentCo.,Ltd. | ExecutiveDirector | 2016-9 | |
| GaoFeng | HunanFenggaoIndustrialInvestmentCo.,Ltd. | GeneralManager | 2016-9 | |
| HunanYaqiHotelManagementCo.,Ltd. | GeneralManager | 2021-6 | ||
| XuXin(Leaveofficeonexpiry) | CapitalTodayGroup(HK)Limited | Director | 2022-12 | 2024-5 |
| CapitalTodayChinaGrowthManagementIIlimited | Director | 2020-1 | 2024-6 | |
| CTGGENPARII,LTD. | Director | 2009-12 | 2024-7 | |
| CTGEvergreenManagementLimited | Director | 2020-1 | 2024-6 | |
| CapitalTodayEvergreenGenpar,Ltd. | Director | 2014-10 | 2024-7 | |
| CapitalTodayRiverManagementLimited | Director | 2018-10 | 2024-6 | |
| CapitalTodayRiverPartnerLimited | Director | 2018-10 | ||
| CapitalTodayRiverGenPar,Ltd. | Director | 2018-9 | 2024-7 | |
| WeEatInc | Director | 2019-2 | ||
| XingshengPreferenceElectronicBusinessLimited | Director | 2018-11 | ||
| DoubleFSInc. | Director | 2020-7 | ||
| XYZROBOTICSGLOBALINC. | Director | 2021-7 | ||
| InterFocusCaymanLtd. | Director | 2021-4 | ||
| YiPinShengXian(Cayman)Limited | Director | 2021-9 | ||
| ShanghaiGaussianAutomationTechnologyDevelopmentCo.,Ltd. | Director | 2021-7 | 2024-6 | |
| DongguanHairouIntelligentTechnologyLimited | Director | 2021-8 | 2024-7 | |
| ShanghaiDr.CheeseBrandManagementCo.,Ltd. | Director | 2022-1 | 2024-6 | |
| ShanghaiWanxiangheyiCosmeticsCo.,Ltd. | Director | 2022-2 | 2024-7 | |
| NanjingUniversity | HonoraryTrusteeoftheBoardofTrustees | 2010 | ||
| ChinaVentureCapitalandPrivateEquityAssociation | Director | 2006 | ||
| Yang | AutoX.Inc | Director | 2025-1 |
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| Rongfeng | BeautyValleyGroupInc. | Director | 2022-2 |
| BlueSpring(International)Limited | Director | 2022-10 | |
| 66gameInc. | Director | 2021-4 | |
| InceptionLtd | Director | 2021-4 | |
| CarrieHoldingInc. | Director | 2023-1 | |
| GoldenProfitNetworkInc. | Director | 2022-12 | |
| Biyue(Beijing)TechnologyCo.,Ltd. | Director | 2019-12 | |
| GuangzhouFuyueInternationalCosmeticsCo.,Ltd. | Director | 2021-6 | |
| YangzhouDayunFoodCo.,Ltd. | Director | 2021-3 | |
| QingdaoXiaolingyouFoodTechnologyCo.,Ltd. | Director | 2021-2 | |
| JRTalentLtd. | Director | 2021-5 | |
| a1(Xiamen)FoodTechnologyCo.,Ltd. | Director | 2022-3 | |
| BestoreCo.,Ltd. | Director | 2022-3 | |
| Weldroid.Co.,Ltd. | Director | 2023-2 | |
| ShanghaiShanlimuTradingCo.,Ltd. | Director | 2023-3 | |
| CapitalTodayManagementConsulting(Shanghai)Limited | Supervisor | 2023-1 | |
| CtgEvergreenInvestmentGOneLimited | Director | 2023-1 | |
| ChangshaYibingYichengCateringManagementCo.,Ltd. | Director | 2023-2 | |
| ShanghaiGaussianAutomationTechnologyDevelopmentCo.,Ltd. | Director | 2024-6 | |
| DongguanHairouIntelligentTechnologyLimited | Director | 2024-7 | |
| ShanghaiDr.CheeseBrandManagementCo.,Ltd. | Director | 2024-6 | |
| ShanghaiWanxiangheyiCosmeticsCo.,Ltd. | Director | 2024-7 | |
| ShanghaiInoherbCosmeticsCo.,Ltd. | Director | 2022-12 | |
| ShanghaiXinwanInformationTechnologyCo.,Ltd. | Supervisor | 2022-9 | |
| ChaiMingang | ShanghaiKaijieEnterpriseManagementConsultingCo.,Ltd. | President | 2018-11 |
| GlodonCompanyLimited | IndependentDirector | 2020-4 | |
| YeWeitao(Leaveofficeonexpiry) | ShanghaiLizeInvestmentManagementCo.,Ltd. | ExecutiveDirector | 2015-5 |
| ShanghaiLanshengResourcesCo.,Ltd. | VicePresident | 2016-10 | |
| ShanghaiShenyueMedicalInstrumentCo.,Ltd. | Supervisor | 2016-11 | |
| ShanghaiJianxinHealthcareInvestmentManagementCo.,Ltd. | Director | 2020-8 | |
| BeijingLidakangTechnologyCo.,Ltd. | Director | 2020-10 | |
| ShaanxiKanghuiPharmaceuticalCo.,Ltd. | IndependentDirector | 2021-4 |
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| MinovaPharmaceuticalsCo.,Ltd. | Director | 2022-9 | ||
| KunshanYitengMedicalTechnologyCo.,Ltd. | Director | 2023-3 | ||
| SuzhouRongshengMedicalTechnologyCo.,Ltd. | Director | 2023-4 | ||
| ShanghaiLizeInvestmentManagementCo.,Ltd. | ExecutiveDirector | 2015-5 | ||
| YanAimin(Leaveofficeonexpiry) | CentralSouthUniversity | Level-2professoranddoctoraladvisor | 2008-9 | |
| HunanMatsuiNewMaterialsCo.,Ltd. | IndependentDirector | 2021-1 | ||
| ShanghaiHajimeAdvancedMaterialTechnologyCo.,Ltd. | IndependentDirector | 2022-6 | ||
| HunanSiaseElectricianIndustryCo.,Ltd. | Director | 2010-9 | ||
| HunanArtecNewMaterialCo.,Ltd. | Director | 2018-9 | ||
| WangHongxia(Leaveofficeonexpiry) | HunanGuangxinTechnologyCo.,Ltd. | IndependentDirector | 2020-8 | |
| YiLanguang(Leaveofficeonexpiry) | HunanZehuaJingkeConsultingCo.,Ltd. | ExecutiveDirectorandGeneralManager | 2017-4 | |
| HunanZehuaPrivateEquityFundManagementCo.,Ltd. | ExecutiveDirectorandGeneralManager | 2017-4 | ||
| ZehuaSmartTechnologyCo.,Ltd. | ExecutiveDirectorandGeneralManager | 2019-5 | 2024-4 | |
| QinZheng | HunanMendaleHometextileCo.,Ltd. | IndependentDirector | 2021-11 | |
| TalkwebInformationSystemCo.,Ltd. | IndependentDirector | 2022-5 | ||
| HunanUniversity | Professor | 2005-6 | ||
| HuangChun’an | ChinaCommercial(Changsha)LawFirm | PersoninCharge | 2020-4 | |
| WangXiaoyan | BlueriverNutritionCompanyLimited | ChiefFinancialOfficer | 2021-9 | |
| LiuYi | HunanUniversity | Professor | 2000-4 | |
| Explanationontheofficeatotherentities | None | |||
(iii)Remunerationofdirectors,supervisors,andseniormanagement"√Applicable""□Notapplicable"
| Decision-makingprocessforthe | TheRemunerationandAppraisalCommitteeundertheBoardisthe |
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| remunerationofdirectors,supervisors,andseniormanagement | managementbodytoassessanddeterminetheremunerationofdirectors,supervisors,andseniormanagement.Theremunerationplansfordirectorsandsupervisors,formulatedbytheRemunerationandAppraisalCommittee,aresubmittedtotheGeneralMeetingofShareholdersforapprovalafterpassingtheBoard.TheremunerationplanforseniormanagementisdirectlysubmittedtotheBoardforapproval. |
| WhetherIshouldbeevasivewhenthedirectorsarediscussingmyremunerationattheboardofdirectors | Yes |
| ThedetailedrecommendationsofRemunerationandAppraisalCommitteeorspecialmeetingsofindependentdirectorsontheremunerationofdirectors,supervisors,andseniormanagement. | Theremuneration/allowancesoftheCompany'sdirectorsandsupervisors,aswellastheremunerationofseniormanagement,willbedeliberatedandapprovedbytheCompany'sRemunerationandAppraisalCommittee. |
| Basisoftheremunerationofdirectors,supervisors,andseniormanagement | Theremuneration/allowancesfortheCompany’sdirectorsandsupervisorswillbedeliberatedandapprovedbytheGeneralMeetingofShareholders:1.DirectorsholdingmanagementpositionsintheCompanyreceiveremunerationaccordingtotheirmanagementrolesanddonotreceiveadditionalcompensation.ThestandardallowanceforindependentdirectorsisCN?120,000perpersonperyear(beforetax),whileotherdirectors’remunerationissetatCN?200,000perpersonperyear(beforetax).2.SupervisorsemployedbytheCompanyhavetheirremunerationdeterminedbasedontheirspecificrolesandpositionswithintheCompanyanddonotreceiveadditionalcompensationfortheirsupervisoryduties.OthersupervisorsreceiveasupervisoryallowanceofCN?100,000perpersonperyear(beforetax). |
| Actualpaymentoftheremunerationofdirectors,supervisors,andseniormanagement | Paymenthasbeenmadeasperrelevantprovisionsandsystems. |
| Totalremunerationactuallyreceivedbyalldirectors,supervisors,andseniormanagementasoftheendoftheReportingPeriod | CN?23.7571million |
(iv)Changesindirectors,supervisorsandseniormanagementofficersoftheCompany"√Applicable""□Notapplicable"
| Name | Position | Change | ReasonforChange |
| XuXin | Director | Off-office | Leaveofficeonexpiry |
| YeWeitao | Director | Off-office | Leaveofficeonexpiry |
| YanAimin | IndependentDirector | Off-office | Leaveofficeonexpiry |
| WangHongxia | IndependentDirector | Off-office | Leaveofficeonexpiry |
| YiLanguang | IndependentDirector | Off-office | Leaveofficeonexpiry |
| YangRongfeng | Director | Election | AsapprovedbytheCompany’s2ndExtraordinaryGeneralMeetingof |
XiFeng
| XiFeng | Director | Election |
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(v)Detailsofpenaltiesimposedbysecuritiesregulatorsinthepastthreeyears"□Applicable""√Notapplicable"(vi)Others"□Applicable""√Notapplicable"V.MeetingsoftheBoardofDirectorsheldduringtheReportingPeriod
| Session | Dateofconvening | ResolutionoftheMeeting |
| 35thmeetingofthe4thBoardofDirectors | 2024.1.12 | PleaserefertotheAnnouncementofthe35thMeetingofthe4thBoardofDirectors(2024-001)disclosedonJanuary13,2024fordetails |
| 36thmeetingofthe4thBoardofDirectors | 2024.1.29 | ProposalonAppointingSeniorManagementMembers |
| 37thmeetingofthe4thBoardofDirectors | 2024.2.28 | PleaserefertotheAnnouncementofthe37thMeetingofthe4thBoardofDirectors(2024-011)disclosedonFebruary29,2024fordetails |
| 38thmeetingofthe4thBoardofDirectors | 2024.4.16 | PleaserefertotheAnnouncementofthe38thMeetingofthe4thBoardofDirectors(2024-027)disclosedonApril17,2024fordetails |
| 39thmeetingofthe4thBoardofDirectors | 2024.4.26 | PleaserefertotheAnnouncementofthe39thMeetingofthe4thBoardofDirectors(2024-031)disclosedonApril27,2024fordetails |
| 40thmeetingofthe4thBoardofDirectors | 2024.6.7 | PleaserefertotheAnnouncementofthe40thMeetingofthe4thBoardofDirectors(2024-051)disclosedonJune8,2024fordetails |
Shareholdersin2024,YangRongfengandXiFengwereelectedasnon-independentdirectors,whileQinZheng,HuangChun’an,andWangXiaoyanwereelectedasindependentdirectors.
| QinZheng | IndependentDirector | Election | Shareholdersin2024,YangRongfengandXiFengwereelectedasnon-independentdirectors,whileQinZheng,HuangChun’an,andWangXiaoyanwereelectedasindependentdirectors. |
| HuangChun’an | IndependentDirector | Election | |
| WangXiaoyan | IndependentDirector | Election | |
| ZhangEnbo | EmployeeRepresentativeSupervisor | Off-office | Leaveofficeonexpiry |
| XiaMuzi | EmployeeRepresentativeSupervisor | Election | AsapprovedbytheCompany’sEmployeeRepresentativesMeetingonJune7,2024,Ms.XiaMuziwaselectedasanemployeerepresentativesupervisor. |
| DengJianqin | ChiefFinancialOfficer | Off-office | Leaveofficeonexpiry |
| WangYonghui | ChiefFinancialOfficer | Appointment | AsapprovedbytheCompany’s1stmeetingofthe5thBoardofDirectorsonJune25,2024,Mr.WangYonghuiwaselectedastheChiefFinancialOfficer. |
| GuWei | ExecutiveVicePresident | Appointment | AsapprovedbytheCompany’s13thmeetingofthe5thBoardofDirectorsonJanuary27,2025,Mr.GuWeiwaselectedastheExecutiveVicePresident. |
| WangFei | VicePresident | Off-office | ResignedfromthepositionofVicePresidentonApril3,2025duetopersonalreasons. |
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| 1stmeetingofthe5thBoardofDirectors | 2024.6.25 | PleaserefertotheAnnouncementofthe1stMeetingofthe5thBoardofDirectors(2024-060)disclosedonJune26,2024fordetails |
| 2ndmeetingofthe5thBoardofDirectors | 2024.7.11 | PleaserefertotheAnnouncementofthe2ndMeetingofthe5thBoardofDirectors(2024-066)disclosedonJuly12,2024fordetails |
| 3rdmeetingofthe5thBoardofDirectors | 2024.7.25 | ProposalonUseofRaisedFundstoReplaceSelf-raisedFundsPreviouslyInvestedinFund-raisingProjectsandPaidIssuanceExpenses |
| 4thmeetingofthe5thBoardofDirectors | 2024.8.23 | ProposalonSigningaTrademarkTransferAgreementwithRelatedPartiesandRelatedPartyTransactions |
| 5thmeetingofthe5thBoardofDirectors | 2024.8.29 | PleaserefertotheAnnouncementofthe5thMeetingofthe5thBoardofDirectors(2024-073)disclosedonAugust30,2024fordetails |
| 6thmeetingofthe5thBoardofDirectors | 2024.8.30 | ProposalonNotAdjustingDownwardtheConversionPriceof“YifengConvertibleBonds” |
| 7thmeetingofthe5thBoardofDirectors | 2024.9.12 | PleaserefertotheAnnouncementofthe7thMeetingofthe5thBoardofDirectors(2024-084)disclosedonSeptember13,2024fordetails |
| 8thmeetingofthe5thBoardofDirectors | 2024.10.14 | PleaserefertotheAnnouncementofthe8thMeetingofthe5thBoardofDirectors(2024-103)disclosedonOctober15,2024fordetails |
| 9thmeetingofthe5thBoardofDirectors | 2024.10.28 | ProposalonNotAdjustingDownwardtheConversionPriceof“YifengConvertibleBonds” |
| 10thmeetingofthe5thBoardofDirectors | 2024.10.30 | ProposalontheQ3Reportfor2024 |
| 11thmeetingofthe5thBoardofDirectors | 2024.11.22 | PleaserefertotheAnnouncementofthe11thMeetingofthe5thBoardofDirectors(2024-119)disclosedonNovember23,2024fordetails |
VI.Performanceofdutiesbydirectors(i)AttendanceofdirectorstotheBoardofDirectorsandtheGeneralMeetingofShareholders
| DirectorName | IndependentDirector | AttendanceattheBoardofDirectors | AttendanceattheGeneralMeetingofShareholders | |||||
| NumberoftheBoardofDirectorsMeetingsRequiredtoAttendDuringtheYear | SessionAttendedinPerson | SessionAttendedbyCorrespondence | SessionAttendedbyProxy | AbsenceSession | NotAttendinginPersonforTwoConsecutiveSessions | NumberofGeneralMeetingsofShareholdersAttended | ||
| GaoYi | No | 17 | 17 | 6 | 0 | 0 | No | 5 |
| GaoFeng | No | 17 | 17 | 6 | 0 | 0 | No | 5 |
| GaoYoucheng | No | 17 | 17 | 6 | 0 | 0 | No | 5 |
| XuXin | No | 6 | 6 | 6 | 0 | 0 | No | 3 |
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| (Leaveofficeonexpiry) | ||||||||
| YangRongfeng | No | 11 | 11 | 9 | 0 | 0 | No | 2 |
| ChaiMingang | No | 11 | 11 | 10 | 0 | 0 | No | 5 |
| YeWeitao(Leaveofficeonexpiry) | No | 6 | 6 | 6 | 0 | 0 | No | 3 |
| XiFeng | No | 11 | 11 | 9 | 0 | 0 | No | 2 |
| YanAimin(Leaveofficeonexpiry) | Yes | 6 | 6 | 5 | 0 | 0 | No | 3 |
| WangHongxia(Leaveofficeonexpiry) | Yes | 6 | 6 | 5 | 0 | 0 | No | 3 |
| YiLanguang(Leaveofficeonexpiry) | Yes | 6 | 6 | 5 | 0 | 0 | No | 3 |
| QinZheng | Yes | 11 | 11 | 9 | 0 | 0 | No | 2 |
| HuangChun’an | Yes | 11 | 11 | 9 | 0 | 0 | No | 2 |
| WangXiaoyan | Yes | 11 | 11 | 9 | 0 | 0 | No | 2 |
ExplanationonNotAttendinginPersonforTwoConsecutiveSessions"□Applicable""√Notapplicable"
| NumberoftheBoardofDirectorsmeetingsduringtheyear | 17 |
| Incl.:Numberofsitemeetings | 0 |
| Numberofmeetingsviacorrespondence | 6 |
| Numberofsitemeetingscombinedwithcorrespondence | 11 |
(ii)Directors’dissentontheCompany’smatters"□Applicable""√Notapplicable"(iii)Others"□Applicable""√Notapplicable"VII.SpecializedcommitteesundertheBoardofDirectors"□Applicable""√Notapplicable"
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(i)MembersofspecializedcommitteesundertheBoardofDirectors
| Typeofcommittee | Nameofmember |
| AuditCommittee | WangXiaoyan,QinZheng,HuangChun’an |
| NominatingCommittee | HuangChun’an,GaoYi,WangXiaoyan |
| RemunerationandAppraisalCommittee | QinZheng,GaoYi,HuangChun’an |
| StrategyandSustainableDevelopmentCommittee | GaoYi,YangRongfeng,ChaiMingang |
(ii)FourmeetingsconvenedbytheAuditCommitteeduringtheReportingPeriod
| Dateofconvening | Conferencecontent | Importantopinionsandsuggestionsproposed | Otherperformanceofduties |
| 2024.4.25 | ReviewedtheProposalontheAnnualReportforYear2023andItsSummary,ProposalontheReportontheFinancialAccountsforYear2023,ProposalonProfitDistributionandConversionofCapitalReservesintoShareCapitalPlansforYear2023,ProposalontheInternalControlEvaluationReportforYear2023,ProposalontheSpecialReportRegardingtheDepositandUseofRaisedFundsforYear2023,ProposalontheReportonthePerformanceofSupervisoryDutiesbytheAccountingFirmforYear2023,ProposalontheReportonthePerformanceoftheAuditCommitteeoftheBoardofDirectorsforYear2023,ProposalonRenewingtheCurrentAccountingFirmforYear2024,Proposalonthe2024InternalAuditReport,Proposalonthe2024Q1Report,andProposalontheInternalAuditReportforQ1of2024. | Allcommitteemembersunanimouslyagreedandpassedtheseproposals. | / |
| 2024.8.26 | ReviewedtheProposalontheInternalAuditReportfortheFirstHalfof2024,andProposalontheSemi-AnnualReportfor2024. | Allcommitteemembersunanimouslyagreedandpassedtheseproposals. | / |
| 2024.10.30 | ReviewedtheProposalontheInternalAuditReportforQ3of2024,andProposalontheQ3Reportfor2024. | Allcommitteemembersunanimouslyagreedandpassedtheseproposals. | / |
| 2024.12.29 | ReviewedtheProposalontheAuditPlanin2024AnnualReport. | Allcommitteemembersunanimouslyagreedandpassedtheseproposals. | / |
(iii)ThreemeetingsconvenedbytheNominatingCommitteeduringtheReportingPeriod
| Dateofconvening | Conferencecontent | Importantopinionsandsuggestionsproposed | Otherperformanceofduties |
| 2024.1.29 | ReviewedtheProposalonAppointingSeniorManagementMembers. | Allcommitteemembersunanimouslyagreedandpassed | / |
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| theseproposals. | |||
| 2024.4.18 | ReviewedtheProposalontheWorkReportoftheNominatingCommitteeforyear2023. | Allcommitteemembersunanimouslyagreedandpassedtheseproposals. | / |
| 2024.6.7 | ReviewedtheProposalontheElectionandNominationofNon-IndependentDirectorsforthe5thBoardofDirectors,andProposalontheElectionandNominationofIndependentDirectorsforthe5thBoardofDirectors. | Allcommitteemembersunanimouslyagreedandpassedtheseproposals. | / |
(iv)ThreemeetingsconvenedbytheRemunerationandAppraisalCommitteeduringthe
ReportingPeriod
| Dateofconvening | Conferencecontent | Importantopinionsandsuggestionsproposed | Otherperformanceofduties |
| 2024.4.25 | ReviewedtheProposalontheRemunerationforSeniorManagementPersonnelforyear2023,andProposalontheWorkReportoftheBoardRemunerationandAppraisalCommitteeforyear2023. | Allcommitteemembersunanimouslyagreedandpassedtheseproposals. | / |
| 2024.6.7 | ReviewedtheProposalontheRemuneration(Allowance)SchemeforDirectorsofthe5thBoardofDirectors,andProposalontheRemuneration(Allowance)SchemeforSupervisorsofthe5thBoardofSupervisors. | Allcommitteemembersunanimouslyagreedandpassedtheseproposals. | / |
| 2024.10.14 | ReviewedtheProposalontheAccomplishmentoftheConditionsfortheReleaseofRestrictedSharesfortheSecondReleasePeriodoftheFirstGrantundertheRestrictedShareIncentivePlanfor2022,andProposalontheAccomplishmentoftheConditionsfortheReleaseofRestrictedSharesfortheFirstReleasePeriodoftheReservedGrantundertheRestrictedShareIncentivePlanfor2022. | Allcommitteemembersunanimouslyagreedandpassedtheseproposals. | / |
(v)OnemeetingconvenedbytheStrategyandSustainableDevelopmentCommitteeduring
theReportingPeriod
| Dateofconvening | Conferencecontent | Importantopinionsandsuggestionsproposed | Otherperformanceofduties |
| 2024.4.25 | ReviewedtheProposalontheWorkReportoftheStrategyCommitteeoftheBoardofDirectorsforyear2023. | Allcommitteemembersunanimouslyagreedandpassedtheseproposals. | / |
(vi)Dissentonrelevantmatters"□Applicable""√Notapplicable"
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VIII.ExplanationonrisksidentifiedbytheBoardofSupervisors"□Applicable""√Notapplicable"TheBoardofSupervisorshadnoobjectiontothesupervisionmattersduringtheReportingPeriod.IX.ThestaffoftheparentcompanyandmainsubsidiariesattheendoftheReportingPeriod(i)Staff
| Numberofon-the-jobemployeesoftheparentcompany | 9,416 |
| Numberofon-the-jobemployeesofthemainsubsidiaries | 30,602 |
| Totalnumberofon-the-jobemployees | 40,018 |
| Numberofretiredemployeesforwhomtheparentcompanyandmainsubsidiariesneedtobearexpenses | 1,742 |
| Specialtycomposition | |
| Categoryofspecialties | Numberofspecialties |
| Manufacturingpersonnel | 110 |
| Salespersonnel | 34,681 |
| Technician | 251 |
| Financialpersonnel | 411 |
| Administrativepersonnel | 3,090 |
| Distributionpersonnel | 1,475 |
| Total | 40,018 |
| Educationallevel | |
| Educationallevelcategory | Numberofemployees |
| Doctoratedegree | 2 |
| Master’sdegree | 129 |
| Undergraduate | 6,818 |
| Collegedegree | 18,066 |
| Technicalsecondaryschool | 9,305 |
| Others | 5,698 |
| Total | 40,018 |
(ii)Remunerationpolicy"√Applicable""□Notapplicable"
Theremunerationofthestaffincludeswages,bonuses,allowances,andfiveinsurances&onefund(endowmentinsurance,governmentBMI,unemploymentinsurance,industrialinjuryinsurance,maternityinsuranceandhousingfund).TheCompanydeterminestotalremunerationbasedonacomprehensivesetoffactors,includingdevelopmentstrategy,annualoperationalobjectives,humanresourcecost-to-salesratio,labormarketconditions,regionaldifferences,andindustrysalarylevels.Thisapproachaimstoeffectivelycontrolandreducelaborcostswhileretainingtalent.Attheendofeachyear,theHumanResourcesDepartmentandtheFinanceDepartmentjointlyformulatetheannualtotalremunerationplanforthenextyearbasedonthestaffingandcorrespondingremunerationstandards,aswellastheOKRandKPIindicators.AfterpreliminaryreviewbytheDirectorofHumanResourcesandtheChiefFinancialOfficer,itissubmittedforreviewtotheVicePresidentandimplementeduponapprovalbythePresident.
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(iii)Trainingplan"√Applicable""□Notapplicable"
Focusingontalentpipelinedevelopment,professionalskillcultivation,andcorporateculturepromotion,theCompanystrivestobuildanoutstandingteamwithastrongsenseofmission,belonging,anddrive.Tothisend,theCompanyhasestablishedacomprehensivetalentdevelopmentsystemencompassingplanning,assessment,training,mentoring,andclearcareerprogressionpaths.Throughtheestablishmentofacorporateuniversityandamulti-tieredtrainingevaluationsystem,theCompanyensuresthatallemployeesvalueandparticipateintraining.Byrefiningtrainingmaterials,implementingacredit-basedassessmentsystem,andcombiningonlineandofflinetrainingmethods,theCompanyachievescomprehensiveimplementationoftraininginitiatives,effectivelyenhancingemployeequalityandtheCompany’ssoftskills.(iv)Laboroutsourcing"□Applicable""√Notapplicable"X.Theprofitdistributionplanorthecapitalreservecapitalizationplan(i)Formulation,implementation,oradjustmentofthecashdividendpolicy"√Applicable""□Notapplicable"
1.FormulationandadjustmentofthecashdividendpolicyDuringtheReportingPeriod,thecashdividendpolicyremainedunchanged.DetailsregardingtheprofitdistributionpolicycanbefoundintherelevantprovisionsoftheArticlesofAssociation.DuringtheReportingPeriod,theCompanyformulatedthe2024“QualityImprovement,EfficiencyEnhancement,andReturntoRewards”ActionPlan,emphasizingtheimportanceofinvestorreturnsandachievingmutualvaluecreation.TheCompanyplaceshighimportanceonprovidingreasonableinvestmentreturnstoinvestorsandstrivestocreatelong-termsustainablevalueforshareholders.IthasformulatedaShareholderReturnPlanningSchemeandstrictlyimplementsshareholderdividendreturnplansandprofitdistributionpolicies.
2.Executionofthecashdividendpolicy
DuringtheReportingPeriod,inaccordancewiththeArticlesofAssociationandrelevantregulationssuchastheRegulatoryGuidelinesforListedCompaniesNo.3-CashDividendsofListedCompanies,theCompanyhelditsAnnualGeneralMeetingofShareholdersfor2023onMay20,2024,approvingthe2023annualprofitdistributionplan.Basedonthetotalsharecapitalregisteredontheequitydistributionrecorddateforthe2023fiscalyear,theCompanydistributedacashdividendofCN?0.50(taxincluded)persharetoallshareholdersandincreasedsharecapitalfromcapitalreservesby
0.20sharespershare.ThetotalcashdividendamountedtoCN?505,289,898.50(taxincluded),with202,115,959sharesissuedthroughthecapitalreserveconversion.
DuringtheReportingPeriod,toenhancetheCompany’sinvestmentvalue,implementthe“Quality
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Improvement,EfficiencyEnhancement,andReturntoRewards”actionplan,andsharedevelopmentresultswithinvestors,theCompanyheldits3
rdExtraordinaryGeneralMeetingofShareholdersin2024onSeptember23,2024.Themeetingapprovedthe2024semi-annualprofitdistributionplan.Basedonthetotalsharecapitalregisteredontheequitydistributionrecorddateforthe2024semi-annualperiod,theCompanydistributedacashdividendofCN?0.25(taxincluded)persharetoallshareholders,totalingCN?303,114,161.25(taxincluded).
3.Profitdistributionin2024
TheCompanyconvenedits16
th
meetingofthe5
th
BoardofDirectorsonApril28,2025,toreviewandapprovetheProposalonProfitDistributionPlanfor2024.TheCompanyproposestodistributeacashdividendofCN?0.40(taxincluded)persharetoallshareholders.AsofMarch31,2025,theCompany’stotalsharecapitalstoodat1,212,416,794shares,resultinginaproposedtotalcashdividenddistributionofCN?484,966,717.60(taxincluded).ShouldtheCompany’stotalsharecapitalchangebetweenthedisclosuredateofthisprofitdistributionplanandtheequityregistrationdateforitsimplementation,duetofactorssuchasconvertiblebondconversionorrepurchaseandcancellationofsharesgrantedunderequityincentives,theCompanyintendstomaintaintheper-sharedistributionratiowhileadjustingthetotaldistributionamountaccordingly.Anysubsequentchangesintotalsharecapitalwillbeannouncedseparatelywithspecificadjustmentdetails.TheprofitdistributionplanaboveissubjecttoapprovalbytheCompany’sshareholdersatthegeneralmeetingbeforeimplementation.(ii)Specialexplanationoncashdividendpolicy"√Applicable""□Notapplicable"
| WhethertocomplywiththeprovisionsoftheArticlesofAssociationortherequirementsoftheGeneralMeetingofShareholdersresolutions | √是□否 |
| Whetherthedividendcriteriaandratioareclearandunambiguous | √是□否 |
| Whethertherelevantdecision-makingproceduresandmechanismsarecomplete | √是□否 |
| Whethertheindependentdirectorsperformtheirdutiesandfulfilltheirdueroles | √是□否 |
| Whethertheminorityshareholdershavetheopportunitytofullyexpresstheiropinionsanddemands,andwhethertheirlegitimaterightsandinterestsareadequatelyprotected | √是□否 |
(iii)IftheCompanyisprofitableduringtheReportingPeriodandtheparentcompanyhas
positiveprofitavailablefordistributiontoshareholdersbutnocashdividenddistributionplanhasbeenproposed,theCompanyshalldiscloseindetailthereasonsaswellasthepurposeandplanfortheuseofundistributedprofits."□Applicable""√Notapplicable"(iv)Planofprofitdistributionandconversionofcapitalreservesintosharecapitalduringthe
ReportingPeriod"√Applicable""□Notapplicable"
Unit:CN?Currency:CNY
| Bonussharesdistributedper10shares(share) | 0 |
| Dividendsper10shares(CN?)(taxincluded) | 4.0 |
| Conversionamountper10shares(share) | 0 |
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| Cashdividendamount(taxincluded) | 484,966,717.60 |
| Netprofitattributabletoordinaryshareholdersofthelistedcompanyintheconsolidatedfinancialstatements | 1,528,576,669.36 |
| Percentageofthecashdividendamounttothenetprofitattributabletoordinaryshareholdersofthelistedcompanyintheconsolidatedfinancialstatements(%) | 31.73% |
| Amountofcashdividendsforsharerepurchasesincash | 0 |
| Totaldividendamount(taxincluded) | 484,966,717.60 |
| PercentageofthetotaldividendamounttothenetprofitattributabletoordinaryshareholdersofthelistedCompanyintheconsolidatedfinancialstatements(%) | 31.73% |
Note:TheCompanydistributedaninterimcashdividendofCN?303,114,161.25in2024.Thetotalcashdividenddistributionfor2024(includingtheinterimdividend)amountstoCN?788,080,878.85,representing51.56%ofthenetprofitattributabletoordinaryshareholdersofthelistedcompanyintheconsolidatedfinancialstatements.(v)Cashdividenddistributionforthepastthreefiscalyears"√Applicable""□Notapplicable"
Unit:CN?10,000Currency:CNY
| Cumulativecashdividendsforthepastthreefiscalyears(taxincluded)(1) | 1,582,052,749.35 |
| Cumulativeamountofsharerepurchasesandcancellationsforthepastthreefiscalyears(2): | 0 |
| Totalamountofcashdividendsandsharerepurchasesandcancellationsforthepastthreefiscalyears(3)=(1)+(2) | 1,582,052,749.35 |
| Averageannualnetprofitforthepastthreefiscalyears(4)Note1 | 1,402,057,191.25 |
| Cashdividendratioforthepastthreefiscalyears(%)(5)=(3)/(4) | 112.84 |
| Netprofitattributabletoordinaryshareholdersofthelistedcompanyintheconsolidatedfinancialstatementsforthemostrecentfiscalyear | 1,528,576,669.36 |
| Undistributedprofitsattheendofthemostrecentfiscalyearintheparentcompany’sfinancialstatement | 854,914,834.22 |
Note1:Thenetprofitamountisthatattributabletoshareholdersofthelistedcompany.XI.ImplementationandimpactoftheCompany’sequityincentiveplans,employeestockownershipplans,orotheremployeeincentivemeasures(i)Therelevantincentivemattersdisclosedininterimannouncementswithoutfurther
developmentsorchanges"√Applicable""□Notapplicable"
| Itemdescription | Searchindex |
| OnOctober14,2024,theCompany’s8thMeetingofthe5thBoardofDirectorsandthe6thMeetingofthe5thBoardofSupervisorsapprovedtheProposalontheAccomplishmentoftheConditionsfortheReleaseofRestrictedSharesfortheSecondReleasePeriodoftheFirstGrantundertheRestrictedShareIncentive | Fordetails,pleaserefertotheAnnouncementontheAccomplishmentoftheConditionsfortheReleaseofRestrictedSharesfortheSecondReleasePeriodoftheFirstGrantundertheRestrictedShareIncentivePlanfor2022(2024-105)disclosedonOctober16,2024. |
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| Planfor2022.Theproposalagreedtounlock2,233,560restrictedsharesfor198incentiverecipients(includingthe2022annualequitydistributionof4sharesforevery10sharesandthe2023annualequitydistributionof2sharesforevery10shares). | |
| OnOctober14,2024,theCompany’s8thMeetingofthe5thBoardofDirectorsandthe6thMeetingofthe5thBoardofSupervisorsapprovedtheProposalontheAccomplishmentoftheConditionsfortheReleaseofRestrictedSharesfortheFirstReleasePeriodoftheReservedGrantundertheRestrictedShareIncentivePlanfor2022.Theproposalagreedtounlock216,668restrictedsharesfor32incentiverecipients(includingthe2022annualequitydistributionof4sharesforevery10sharesandthe2023annualequitydistributionof2sharesforevery10shares). | Fordetails,pleaserefertotheAnnouncementontheAccomplishmentoftheConditionsfortheReleaseofRestrictedSharesfortheFirstReleasePeriodoftheReservedGrantundertheRestrictedShareIncentivePlanfor2022(2024-106)disclosedonOctober16,2024. |
(ii)Incentivesthathavenotbeendisclosedininterimannouncementsorhavefurther
developmentsEquityincentive"□Applicable""√Notapplicable"Additionalinformation:
"□Applicable""√Notapplicable"Employeestockownershipplan"□Applicable""√Notapplicable"Otherincentivemeasures"□Applicable""√Notapplicable"(iii)EquityincentivesgrantedtodirectorsandseniormanagementduringtheReportingPeriod"□Applicable""√Notapplicable"(iv)EvaluationmechanismforseniormanagementduringtheReportingPeriod,aswellasthe
establishmentandimplementationofincentivemechanisms"√Applicable""□Notapplicable"
TheCompanyhasestablishedandcontinuestorefineitsevaluationmechanismforseniormanagement.Thecompensationforseniormanagementisdeterminedaccordingtothefollowingstandards:
(1)Theremunerationisbasedonanannualsalarysystem,withtheannualsalarylinkedtotheirresponsibilities,risks,andbusinessperformance.
(2)Theremunerationstructureconsistsofbasicannualsalaryandannualperformancesalary.
(3)Theannualbasicsalaryisdeterminedbasedonthegrade,jobresponsibilities,andability.ItisproposedbytheRemunerationandAppraisalCommitteetotheBoardofDirectors.
(4)Theannualperformancesalaryisdeterminedbasedontheresultsandgradesofanassessmentencompassingtheannualsalarystandards,theCompany’sperformancefulfillment,andthejob
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performanceassessment.Theassessmentconsistsofcompositeindicators,includingthefulfillmentoftheCompany’sbusinessobjectives,worksafety,standardizedoperations,professionalethics,confidentialityprovisions,andcorporatecultureconstruction.
TheRemunerationandAppraisalCommitteewillconductperformanceassessmentsofseniormanagementandformulateanannualcompensationassessmentplanbasedontheirjobperformance.XII.ConstructionandimplementationoftheinternalcontrolsystemduringtheReportingPeriod"√Applicable""□Notapplicable"
DuringtheReportingPeriod,theCompanyestablishedastrictinternalcontrolmanagementsysteminstrictaccordancewiththerequirementsoftheCSRC,theShanghaiStockExchange,theCompanyLaw,theArticlesofAssociation,andotherrelevantlawsandregulations.Takingintoaccountindustrycharacteristicsandactualbusinessoperations,theCompanycontinuouslyimprovedandrefineditsinternalcontrolsystemtoensureitseffectiveimplementation.ThishaseffectivelyenhancedtheCompany’sstandardizedoperationprocedures,improveddecision-makingefficiency,ensuredthelegalcomplianceofbusinessoperationsandassetsecurity,aswellasfacilitatedthesteadyimplementationoftheCompany’sstrategies.
The2024InternalControlEvaluationReportwasapprovedatthe16
th
meetingofthe5
thBoardofDirectors.BasedontheidentificationresultsofsignificantdefectsintheCompany’sfinancialreports,therewerenosignificantdefectsintheinternalcontrolofthefinancialreportsasofthebenchmarkdateoftheinternalcontrolevaluationreport.TheCompanyhasensuredeffectiveinternalcontroloverfinancialreportsinallsignificantaspectsinaccordancewiththeinternalcontrolstandardsystemandrelevantregulations.BasedontheidentificationresultsofsignificantdefectsintheCompany’snon-financialreports,therewerenosignificantdefectsintheinternalcontrolofthenon-financialreportsasofthebenchmarkdateoftheinternalcontrolevaluationreport.ThefulltextisavailableontheShanghaiStockExchangewebsite(www.sse.com.cn).ExplanationonsignificantdefectsininternalcontrolidentifiedduringtheReportingPeriod"□Applicable""√Notapplicable"XIII.ManagementandcontrolofthesubsidiariesduringtheReportingPeriod"√Applicable""□Notapplicable"
TheCompanyhasestablishedtheSubsidiaryManagementSystem.AllsubsidiariesoftheCompanyhaveestablishedcompleteinternalcontrolsystemsandmanagementmechanisms,soastoensurethatallassets,operations,andstrategicplanningofthesubsidiariesareeffectivelymonitoredbytheCompany.Theselection,appointment&removal,andassessmentofkeypersonnelineachsubsidiaryareallmanagedandsupervisedbytheCompany.XIV.Descriptionoftheinternalcontrolauditreport"√Applicable""□Notapplicable"Detailsareavailableinthe2024AnnualInternalControlAuditReport,whichisdisclosedonthesamedayasthe2024AnnualReportontheShanghaiStockExchangewebsite(www.sse.com.cn).
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Whethertodisclosetheinternalcontrolauditreport:YesTypeofinternalcontrolauditopinionsforreport:StandardunqualifiedopinionsXV.Self-inspectionandrectificationofissuesfoundinthespecialcampaignforgovernanceof
listedcompaniesNotapplicableXVI.Others"□Applicable""√Notapplicable"
SectionV.EnvironmentalandSocialResponsibility
I.Majorenvironmentalissues
| Whethertobuildmechanismrelatedtoenvironmentalprotection | No |
| InvestmentinenvironmentalprotectionduringtheReportingPeriod(Unit:CN?10,000) | 0 |
(i)EnvironmentalmeasuresadoptedbytheCompanyanditssubsidiarieslistedaskeypollutant
dischargeunitspublishedbytheenvironmentalprotectiondepartment"□Applicable""√Notapplicable"(ii)Environmentalmeasuresadoptedbythecompaniesotherthankeypollutantdischargeunits"√Applicable""□Notapplicable"
1.Administrativepenaltiesduetoenvironmentalissues"□Applicable""√Notapplicable"
2.Environmentalinformationdisclosedwithreferencetokeypollutantdischargeunits"√Applicable""□Notapplicable"TheCompanyisprimarilyengagedinpharmaceuticalretailandgeneratesasmallamountofpollutantssuchasdomesticwastewater,wastegases,andsolidwasteduringoperations.TheCompany'soperationactivitiesdonotinvolvehighriskorheavypollution.Themainpollutantsdischargedduringtheoperationsincludeproductiondomesticwastewater,wastegases,domesticsewage,aswellasexpiredordamageddrugsandpackagingmaterialsTheCompanyiscommittedtoefficientresourceutilization,withastrongemphasisonmaterialrecyclingandreuse.Itactivelypromoteswastereductionandenvironmentallyfriendlytreatmentmethods.TheCompanyhasinvestedinappropriatetreatmentfacilitiesandequipmentforwastewater,exhaustgases,domesticsewage,andotherpollutantsgeneratedduringroutineproductionandoperationalprocesses.Througheffectivewastemanagementpractices,theCompanyensurescompliancewithemissionstandards,therebyminimizingtheenvironmentalimpactofitsoperations.
DuringtheReportingPeriod,theCompanyanditssubsidiariesstrictlyimplementedthenationalenvironmentalprotectionpolicies,strictlyadheredtothenationalenvironmentalprotectionlawsandregulations,anddidnotengageinanyenvironmentalviolations.Moreover,theCompanyhasnot
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receivedanyadministrativepenaltiesrelatedtoenvironmentalprotection.
3.Thereasonfornotdisclosingotherenvironmentalinformation"□Applicable""√Notapplicable"(iii)Informationregardingenvironmentalprotection,pollutioncontrol,andfulfillmentof
environmentalresponsibilities"□Applicable""√Notapplicable"(iv)Measurestakentoreducecarbonemissionsduringthereportingperiodandtheeffectthereof
| Whethertotakemeasurestoreducecarbonemissions | Yes |
| Reducedemissionsofcarbondioxideequivalent(unit:ton) | 383.394 |
| Typesofcarbonreductionmeasures(cleanenergyforpowergeneration,carbonreductiontechnologiesintheproductionprocess,andR&Dofnewproductsthatcontributetocarbonreduction,etc.). | Tosetannualwater&powerconservationtargetsforofficeareas;toimprovetheutilizationrateofnewenergyvehiclesinofficeandtransportationlogistics;toexpandcoverageofphotovoltaicpowergenerationprojectfordistributionandwarehousing |
Details"□Applicable""√Notapplicable"II.Socialresponsibility(i)Whethertodiscloseasocialresponsibilityreport,sustainabledevelopmentreport,orESG
report"√Applicable""□Notapplicable"
Detailsareavailableinthe2024Environmental,SocialandCorporateGovernanceReport,whichisdisclosedonthesamedayasthe2024AnnualReportontheShanghaiStockExchangewebsite(www.sse.com.cn).(ii)Socialresponsibilitywork"□Applicable""√Notapplicable"Details"□Applicable""√Notapplicable"III.Detailsonenhancingandexpandingtheachievementsofpovertyalleviationandrural
revitalization"□Applicable""√Notapplicable"Details"□Applicable""√Notapplicable"
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SectionVI.ImportantmattersI.Fulfillmentofcommitments(i)Commitmentsfulfilledbytheactualcontroller,shareholders,relatedparties,buyers,andtheCompanywithintheReportingPeriodand
commitmentsnotyetfulfilledbytheendoftheReportingPeriod"√Applicable""□Notapplicable"
| Commitmentbackground | CommitmentType | Commitmentparty | CommitmentContent | Commitmenttime | Whethertosetadeadlineforfulfillment | Commitmentperiod | Whethertostrictlyfulfillthecommitment | Reasonsforfailingtofulfillthecommitment,ifany | Actionstobetakenafterfailingtofulfillthecommitment |
| Commitmentsrelatedtosignificantassetrestructuring | Resolutionofpeercompetition | ControllingshareholderJikangManagement(formerlyknownasHouxinVentureCapital) | AsthecontrollingshareholderofYifengPharmacy,theCompanyirrevocablymakesthefollowingcommitments(1)Asofthesigningdateofthiscommitmentletter,theCompanyhasnotmadeanydirectorindirectinvestmentsinbusinessesthataresimilaroridenticaltotheoperationsofYifengPharmacyanditssubsidiaries.ThereisnopeercompetitionorpotentialcompetitionwithYifengPharmacyanditssubsidiaries.(2)Fromthesigningdateofthiscommitmentletter:①TheCompanyshallnotdirectlyorindirectlyinvestinbusinessessimilaroridenticaltotheoperationsofYifengPharmacyanditssubsidiaries.ItshallnotestablishoracquireanyoperatorsdirectlyorindirectlyengagedinbusinessessimilaroridenticaltotheoperationsofYifengPharmacyanditssubsidiaries.Inaddition,theCompanyshallnotassistanyindividualorentityinestablishing,operating,ordevelopinganybusiness,enterprise,project,orothercommercialactivitiesthatmaydirectlyorindirectlycompetefortheoperationsofYifengPharmacyanditssubsidiariesinChinaorabroad,toavoidcreatingnew,potentiallydirect | June21,2018 | Yes | Longterm | Yes |
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| aforementionedcommitments,theCompanyshalltakeproactivemeasurestoeliminatepeercompetitionandiswillingtobearanydirectorindirecteconomiclosses,claims,andadditionalexpenditureincurredbyYifengPharmacyoritsshareholdersotherthantheCompany.(5)TheCompanyconfirmsthateachcommitmentstatedinthiscommitmentletterisindependentlyenforceable.Theinvalidityorterminationofanycommitmentshallnotaffectthevalidityoftheothercommitments.TheaforementionedcommitmentsshallremaineffectiveandshallnotbealteredorrevokedduringtheperiodwhentheCompanyfunctionsasthecontrollingshareholderofYifengPharmacyandwithinoneyearfromthedateoftransferringallshares.ThiscommitmentlettershallcomeintoeffectfromthedateofthestampingtheCompany’sofficialseal. | ||||||
| Resolutionofrelatedpartytransactions | ControllingshareholderJikangManagement(formerlyknownasHouxinVentureCapital) | AsthecontrollingshareholderofYifengPharmacy,theCompanyirrevocablymakesthefollowingcommitments(i)TheCompanyandothercompaniesunderitscontrol,YifengPharmacyexcluded,shallmakeeveryefforttoavoidengaginginrelatedpartytransactionswithYifengPharmacyanditssubsidiaries.Incaseswheresuchtransactionsaredeemednecessaryandunavoidable,theyshallbeconductedbasedontheprinciplesoffairness,equity,andequalvalue.Transactionpricesshallbedeterminedbasedonthefairpricesrecognizedbythemarket.Transactionapprovalproceduresandinformationdisclosureobligationsshallbefulfilledinaccordancewithrelevantlaws,regulations,normativedocuments,andtheprovisionsoftheArticlesofAssociation,toeffectivelyprotecttheinterestsofYifengPharmacyanditsothershareholders.(ii)TheCompanyguaranteesthatitandothercompaniesunderitscontrol,apartfromYifengPharmacy,strictlycomplywithlawsand | June21,2018 | No | Longterm | Yes |
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| regulations,aswellastheregulatorydocumentsoftheCSRCandthestockexchanges,andtheprovisionsofYifengPharmacy’sArticlesofAssociationandtheRelatedPartyTransactionManagementMeasures.TheCompanyshallnotleverageitscontrollingshareholderstatustoseekunduebenefitsorengageinrelatedpartytransactionsthatcouldharmtheinterestsofYifengPharmacyanditsothershareholders.(iii)IntheeventofaviolationoftheaforementionedcommitmentsandtransactionswithYifengPharmacyanditssubsidiariesresultinginlossestoYifengPharmacyanditsothershareholders,theCompanyshallbeartheresponsibilityforcompensation. | ||||||
| Others | ControllingshareholderJikangManagement(formerlyknownasHouxinVentureCapital) | AsthecontrollingshareholderofYifengPharmacy,theCompanymakesthefollowingcommitmentstoensuretheindependenceofYifengPharmacy:TheCompanyguaranteesthatothercompaniesunderitscontrolmaintaincompletelyindependentoperationsfromYifengPharmacyintermsofassets,personnel,finances,institutions,andbusinesses.TheCompanyshallstrictlyadheretotherelevantregulationsoftheCSRCregardingtheindependenceoflistedcompaniesandshallnotmisuseitsshareholderstatustoviolateYifengPharmacy’sstandardoperatingprocedures,interferewithYifengPharmacy’sbusinessdecisions,orunderminethelegitimaterightsandinterestsofYifengPharmacyanditsothershareholders. | June21,2018 | No | Longterm | Yes |
| Others | ActualcompanycontrollerGaoYi | AstheactualcontrollerofYifengPharmacy,Iirrevocablymakethefollowingcommitments:(1)Asofthesigningdateofthiscommitmentletter,IhavenotmadeanydirectorindirectinvestmentsinbusinessesthataresimilaroridenticaltotheoperationsofYifengPharmacyanditssubsidiaries.ThereisnopeercompetitionorpotentialcompetitionwithYifengPharmacyanditssubsidiaries.(2)Fromthesigningdateofthiscommitment | June21,2018 | No | Longterm | Yes |
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| purchase.IshallguaranteethatthetermsprovidedtoYifengPharmacyanditssubsidiariesforthesaleortransferofsuchassetsorbusinessesarenotlessfavorablethanthoseofferedtoanythirdparty.(3)IshallconfirmthatthiscommitmentletteraimstoprotecttherightsandinterestsofYifengPharmacyandallofitsshareholders.IshallnotutilizemycontrollingrelationshipwithYifengPharmacytoconductanyoperationsthatwouldharmtherightsandinterestsofYifengPharmacyanditsshareholdersotherthantheCompany.(4)Intheeventofaviolationofanyoftheaforementionedcommitments,Ishalltakeproactivemeasurestoeliminatepeercompetitionandamwillingtobearanydirectorindirecteconomiclosses,claims,andadditionalexpenditureincurredbyYifengPharmacyoritsshareholdersotherthanme.(5)Ishallconfirmthateachcommitmentstatedinthiscommitmentletterisindependentlyenforceable.Theinvalidityorterminationofanycommitmentshallnotaffectthevalidityoftheothercommitments.TheaforementionedcommitmentsshallremaineffectiveandshallnotbealteredorrevokedduringtheperiodwhenIfunctionastheactualcontrollerofYifengPharmacyandwithinoneyearfromthedateoftransferringallshares | ||||||
| Resolutionofrelatedpartytransactions | ActualcompanycontrollerGaoYi | AstheactualcontrollerofYifengPharmacy,Iirrevocablymakethefollowingcommitments:(I)Iandothercompaniesundermycontrol,YifengPharmacyexcluded,shallmakeeveryefforttoavoidengaginginrelatedpartytransactionswithYifengPharmacyanditssubsidiaries.Incaseswheresuchtransactionsaredeemednecessaryandunavoidable,theyshallbeconductedbasedontheprinciplesoffairness,equity,andequalvalue.Transactionpricesshallbedeterminedbasedonthefairpricesrecognizedbythemarket.Transactionapprovalproceduresandinformationdisclosure | June21,2018 | No | Longterm | Yes |
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| obligationsshallbefulfilledinaccordancewithrelevantlaws,regulations,normativedocuments,andtheprovisionsoftheArticlesofAssociation,toeffectivelyprotecttheinterestsofYifengPharmacyanditsothershareholders.(ii)IshallguaranteethatIandothercompaniesundermycontrol,apartfromYifengPharmacy,strictlycomplywithlawsandregulations,aswellastheregulatorydocumentsoftheCSRCandthestockexchanges,andtheprovisionsofYifengPharmacy’sArticlesofAssociationandtheRelatedPartyTransactionManagementMeasures.IshallnotleveragethestatusofactualcontrollertoseekunduebenefitsorengageinrelatedpartytransactionsthatcouldharmtheinterestsofYifengPharmacyanditsothershareholders.(iii)IntheeventofaviolationoftheaforementionedcommitmentsandtransactionswithYifengPharmacyanditssubsidiariesresultinginlossestoYifengPharmacyanditsothershareholders,Ishallbeartheresponsibilityforcompensation. | |||||||
| Others | ActualcompanycontrollerGaoYi | AstheactualcontrollerofYifengPharmacy,IirrevocablymakethefollowingcommitmentstomaintainYifengPharmacy’sindependence:IshallguaranteethatIandothercompaniesundermycontrolmaintaincompletelyindependentoperationsfromYifengPharmacyintermsofassets,personnel,finances,institutions,andbusinesses.WeshallstrictlyadheretotherelevantregulationsoftheCSRCregardingtheindependenceoflistedcompaniesandshallnotmisuseourshareholderstatustoviolateYifengPharmacy’sstandardoperatingprocedures,interferewithYifengPharmacy’sbusinessdecisions,orunderminethelegitimaterightsandinterestsofYifengPharmacyanditsothershareholders. | June21,2018 | No | Longterm | Yes | |
| Commitmentsrelatedtotheinitialpublicoffering | Resolutionofpeercompetition | ActualcontrollerGaoYi | Toavoidpotentialpeercompetitioninthefuture,GaoYi,astheactualcontrolleroftheCompany,andGaoFengandGaoHongfa,ascloserelativesoftheactualcontroller,representingthemselves | FromFebruary17,2015,itshallbeeffective | No | Longterm | Yes |
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| andothercompaniestheycurrentlycontrolormaycontrolinthefuturerespectively,haveissuedtheLetterofCommitmenttoAvoidingPeerCompetition.Theyirrevocablymakethefollowingcommitments:(1)Asofthesigningdateofthiscommitmentletter,Ihavenotmadeanydirectorindirectinvestmentsinotherbusinessessimilaroridenticaltotheissueranditssubsidiaries.Thereisnopeercompetitionorpotentialcompetitionbetweenmeandtheissueranditssubsidiaries.(2)Fromthesigningdateofthiscommitmentletter:①Ishallnotdirectlyorindirectlyinvestinbusinessessimilaroridenticaltotheoperationsoftheissueranditssubsidiaries.Ishallnotestablishoracquireanyoperatorsdirectlyorindirectlyengagedinbusinessessimilaroridenticaltotheoperationsoftheissueranditssubsidiaries.Inaddition,Ishallnotassistanyindividualorentityinestablishing,operating,ordevelopinganybusiness,enterprise,project,orothercommercialactivitiesthatmaydirectlyorindirectlycompetefortheoperationsoftheissueranditssubsidiariesinChinaorabroad,toavoidcreatingnew,potentiallydirectorindirectbusinesscompetitionfortheissueranditssubsidiaries.②Iftheissueranditssubsidiariesfurtherexpandtheirbusinessscope,Iandotheroperatorsundermycontrolshallnotcompetefortheexpandedoperationsoftheissueranditssubsidiaries.Intheeventofcompetitionfortheexpandedoperationsoftheissueranditssubsidiaries,Iandotheroperatorsundermycontrolshalleitherceasethecompetitivebusinessoperationsorintegratethecompetitivebusinessintotheoperationsoftheissueranditssubsidiaries,ortransferthecompetitivebusinesstoathirdpartywithnoaffiliation,thusavoidingpeercompetition.③Fornewproductsandnewbusinessesindependentlydeveloped,introduced,orjointlydevelopedbymeorothercompaniesundermycontrolandrelatedtotheoperationsof | inthelongterm. |
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| theissueranditssubsidiaries,theissueranditssubsidiarieswillhavethepriorityforgrantandoperation.④IfIorothercompaniesundermycontrolintendtosellanyotherassets,businesses,orrightsrelatedtotheoperationsoftheissueranditssubsidiaries,theissueranditssubsidiariesshallhavethepriorityforpurchase.Ishallguaranteethatthetermsprovidedtotheissueranditssubsidiariesforthesaleortransferofsuchassetsorbusinessesarenotlessfavorablethanthoseofferedtoanythirdparty.(3)Ishallconfirmthatthiscommitmentletteraimstoprotecttherightsandinterestsoftheissuerandallofitsshareholders.Ishallnotutilizemycontrollingrelationshipwiththeissuertoconductanyoperationsthatwouldharmtherightsandinterestsoftheissueranditsshareholdersotherthanme.(4)Intheeventofaviolationofanyoftheaforementionedcommitments,Ishalltakeproactivemeasurestoeliminatepeercompetitionandamwillingtobearanydirectorindirecteconomiclosses,claims,andadditionalexpenditureincurredbytheissueroritsshareholdersotherthanme.(5)Ishallconfirmthateachcommitmentstatedinthiscommitmentletterisindependentlyenforceable.Theinvalidityorterminationofanycommitmentshallnotaffectthevalidityoftheothercommitments.TheaforementionedcommitmentsshallremaineffectiveandshallnotbealteredorrevokedduringtheperiodwhenIfunctionastheactualcontrolleroftheissuerandwithinoneyearfromthedateoftransferringallshares. | |||||
| Resolutionofrelatedpartytransactions | ActualcontrollerGaoYi | (i)Asofthesigningdateofthiscommitmentletter,exceptforthosedisclosed,therearenoothersignificantrelatedpartytransactionsbetweenmeandtheothercompaniesundermycontrolexcludingtheissueranditssubsidiaries.(ii)Iandothercompaniesundermycontrol,theissuerexcluded,shallmakeeveryefforttoavoidengaginginrelatedpartytransactionswiththeissueranditssubsidiaries.Incaseswheresuch | Itshallbeeffectiveinthelongterm. | No | Longterm |
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| transactionsaredeemednecessaryandunavoidable,theyshallbeconductedbasedontheprinciplesoffairness,equity,andequalvalue.Transactionpricesshallbedeterminedbasedonthefairpricesrecognizedbythemarket.Transactionapprovalproceduresandinformationdisclosureobligationsshallbefulfilledinaccordancewithrelevantlaws,regulations,normativedocuments,andtheprovisionsoftheArticlesofAssociation,toeffectivelyprotecttheinterestsoftheissueranditsothershareholders.(iii)IshallguaranteethatIandothercompaniesundermycontrol,apartfromtheissuer,strictlycomplywithlawsandregulations,aswellastheregulatorydocumentsoftheCSRCandthestockexchanges,andtheprovisionsoftheissuer’sArticlesofAssociationandtheRelatedPartyTransactionManagementMeasures.Ishallnotleveragethestatusofactualcontrollertoseekunduebenefitsorengageinrelatedpartytransactionsthatcouldharmtheinterestsoftheissueranditsothershareholders.(iv)Intheeventofaviolationoftheaforementionedcommitmentsandtransactionswiththeissueranditssubsidiariesresultinginlossestotheissueranditsothershareholders,Ishallbeartheresponsibilityforcompensation. | |||||
| Resolutionofpeercompetition | ControllingshareholderYifengInvestment(formerlyknownasHouxinVentureCapital) | Toavoidpotentialpeercompetitioninthefuture,thecontrollingshareholderofYifengPharmacy,representingtheCompanyandothercompaniesthatitcurrentlycontrolormaycontrolinthefuturerespectively,hasissuedtheLetterofCommitmenttoAvoidingPeerCompetition.Theyirrevocablymakethefollowingcommitments:(1)Asofthesigningdateofthiscommitmentletter,theCompanyhasnotmadeanydirectorindirectinvestmentsinotherbusinessessimilaroridenticaltotheissueranditssubsidiaries.ThereisnopeercompetitionorpotentialcompetitionbetweentheCompanyandtheissueranditssubsidiaries.(2)Fromthesigningdateofthiscommitmentletter:①The | FromFebruary17,2015,itshallbeeffectiveinthelongterm | No | Longterm |
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| suchassetsorbusinessesarenotlessfavorablethanthoseofferedtoanythirdparty.(3)TheCompanyshallconfirmthatthiscommitmentletteraimstoprotecttherightsandinterestsoftheissuerandallofitsshareholders.TheCompanyshallnotutilizeitscontrollingrelationshipwiththeissuertoconductanyoperationsthatwouldharmtherightsandinterestsoftheissueranditsshareholdersotherthantheCompany.(4)Intheeventofaviolationofanyoftheaforementionedcommitments,theCompanyshalltakeproactivemeasurestoeliminatepeercompetitionandiswillingtobearanydirectorindirecteconomiclosses,claims,andadditionalexpenditureincurredbytheissueroritsshareholdersotherthantheCompany.(5)TheCompanyshallconfirmthateachcommitmentstatedinthiscommitmentletterisindependentlyenforceable.Theinvalidityorterminationofanycommitmentshallnotaffectthevalidityoftheothercommitments.TheaforementionedcommitmentsshallremaineffectiveandshallnotbealteredorrevokedduringtheperiodwhentheCompanyfunctionsasthecontrollingshareholderoftheissuerandwithinoneyearfromthedateoftransferringallshares. | |||||
| Resolutionofrelatedpartytransactions | ControllingshareholderYifengInvestment(formerlyknownasHouxinVentureCapital) | (i)Asofthesigningdateofthiscommitmentletter,exceptforthosedisclosed,therearenoothersignificantrelatedpartytransactionsbetweentheCompanyandtheothercompaniesunderitscontrolexcludingtheissueranditssubsidiaries.(ii)TheCompanyandothercompaniesunderitscontrol,theissuerexcluded,shallmakeeveryefforttoavoidengaginginrelatedpartytransactionswiththeissueranditssubsidiaries.Incaseswheresuchtransactionsaredeemednecessaryandunavoidable,theyshallbeconductedbasedontheprinciplesoffairness,equity,andequalvalue.Transactionpricesshallbedeterminedbasedonthefairpricesrecognizedbythemarket.Transactionapproval | Itshallbeeffectiveinthelongterm. | No | Longterm |
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| proceduresandinformationdisclosureobligationsshallbefulfilledinaccordancewithrelevantlaws,regulations,normativedocuments,andtheprovisionsoftheArticlesofAssociation,toeffectivelyprotecttheinterestsoftheissueranditsothershareholders.(iii)TheCompanyshallguaranteethattheCompanyandothercompaniesunderitscontrol,apartfromtheissuer,strictlycomplywithlawsandregulations,aswellastheregulatorydocumentsoftheCSRCandthestockexchanges,andtheprovisionsoftheissuer’sArticlesofAssociationandtheRelatedPartyTransactionManagementMeasures.TheCompanyshallnotleveragethestatusofcontrollingshareholdertoseekunduebenefitsorengageinrelatedpartytransactionsthatcouldharmtheinterestsoftheissueranditsothershareholders.(iv)Intheeventofaviolationoftheaforementionedcommitmentsandtransactionswiththeissueranditssubsidiariesresultinginlossestotheissueranditsothershareholders,theCompanyshallbeartheresponsibilityforcompensation. | |||||
| Others | ActualcompanycontrollerGaoYiandcontrollingshareholderYifengInvestment(formerlyknownasHouxinVentureCapital) | IftheCompanyanditssubsidiariesincurlossesduetothefailuretoregistertheleasefortheproperty,Ishallpromptlyandfullycompensaterelatedcompaniesforthelossesincurred. | Itshallbeeffectiveinthelongterm. | No | Longterm |
| Others | ActualcompanyControllerGaoYiandcontrolling | Iftheissuer(includingsubsidiaries)isrequiredbyanycompetentauthoritytomakeupforallorpartoftheunpaidsocialinsurancepremiums,housingprovidentfunds,and/orissubjecttoanyrelevantpenaltiesorlosses,JikangandGaoYishallbearalltheinsurancepremiums,housing | Itshallbeeffectiveinthelongterm. | No | Longterm |
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| shareholderYifengInvestment(formerlyknownasHouxinVentureCapital) | providentfunds,penalties,and/orrelevantlosses.Intheeventthattheissuer(includingsubsidiaries)mustmaketheinitialpaymentofsuchexpenses,timelyandfullcompensationshallbeprovidedtoensurethattheissuer(includingsubsidiaries)willnotsufferanylosses. | ||||
| Restrictedshares | ActualcontrollerGaoYi | GaoYi,theactualcontrolleroftheCompany,andhiscloserelativesGaoHongfa(GaoYi’sfather)andGaoFeng(GaoYi’syoungerbrother)havemadethefollowingcommitments:“Withinthirty-sixmonthsfromthelistingdateoftheCompany'sstock,IshallnottransferorentrustotherstomanagethesharesoftheCompanydirectlyorindirectlyheldbymeandissuedbeforepublicoffering,norshallIallowtheCompanytorepurchasethesharesdirectlyorindirectlyheldbymeandissuedpriortopublicoffering.IfIviolatetheaforementionedcommitmentsormandatorylegalprovisionsandreducemyholdingsoftheCompany’sshares,IundertakethattheproceedsfromtheimproperreductionoftheCompany’sshareswillbelongtotheCompany.IfIfailtosurrendertheproceedsfromtheimproperreductiontotheCompany,theCompanyisentitledtowithholdfrommycashdividendsanamountequivalenttotheproceedsfromtheimproperreductionthatIshouldhavesurrenderedtotheCompany.”Sharereductioncommitment:GaoYi,theactualcontrolleroftheCompanymakesthefollowingcommitment:“ForthesharesheldbymebeforetheinitialpublicofferingofYifengPharmacyChainCo.,Ltd.,whicharetobereducedwithintwoyearsaftertheexpirationofthelock-upperiod,theyshallnotbesoldatapricelowerthantheissuancepriceoftheinitialpublicofferings.(Duetofactorssuchascashdividenddistribution,bonusissue,capitalconversion,ornewshareissuance,theexclusionofrightsanddividendsshallberestoredaccordingtothe | Sharelock-upperiod:36monthsfromFebruary17,2015.Sharereductionperiod:Withintwoyearsaftertheexpirationofthelock-upperiod,thereductionofsharesshallnotexceed15%oftheCompany’stotal. | No | Longterm |
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| relevantregulationsofthestockexchange.)ThenumberoftheCompany’ssharestobereducedannuallyshallnotexceed15%ofthenumberoftheCompany’ssharesheldbymeattheendofthepreviousyear.Whenreducingthesharesheldbyme,IshallnotifytheCompanyinwritinginadvanceofmyintentiontoreducesharesandtheintendedquantityofreduction.TheCompanyshallpromptlyannouncetheinformation.ImayproceedwiththereductionoftheCompany’ssharesthreetradingdaysaftertheannouncement.IfIviolatetheaforementionedcommitmentsormandatorylegalprovisionsandreducemyholdingsoftheCompany’sshares,Iundertakethattheproceeds(hereinafterreferredtoastheimproperproceeds)fromtheimproperreductionoftheCompany’sshareswillbelongtotheCompany.IfIfailtosurrendertheproceedsfromtheimproperreductiontotheCompany,theCompanyisentitledtowithholdfrommycashdividendsanamountequivalenttotheproceedsfromtheimproperreductionthatIshouldhavesurrenderedtotheCompany. | ||||||
| Restrictedshares | ControllingshareholderYifengInvestment(formerlyknownasHouxinVentureCapital) | Sharelock-upcommitments:“Withinthirty-sixmonthsfromthelistingdateofYifeng’sstock,theCompanyshallnottransferorentrustotherstomanageYifeng’ssharesdirectlyorindirectlyheldbytheCompanyandissuedbeforepublicoffering,norshalltheCompanyrepurchaseYifeng’ssharesdirectlyorindirectlyheldbyitselfandissuedpriortopublicoffering.”Sharereductioncommitment:“Withintwoyearsaftertheexpirationofthelock-upperiodofYifeng’ssharesheld,thecumulativereductionofsharesshallnotexceed10%ofYifeng’stotal.ThepriceofthereductionshallnotbelowerthantheissuancepriceoftheCompany’sinitialpublicoffering(IPO).(IntheeventoftheCompany’sdividenddistribution,cashdividends,bonusissue,andtheconversionofcapitalreservesinto | Sharelock-upperiod:36monthsfromFebruary17,2015.Sharereductionperiod:Withintwoyearsaftertheexpirationofthelock-upperiod,thereductionofsharesshallnotexceed | No | Longterm | Yes |
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| sharecapital,andothermattersrelatedtotheexclusionofrightsanddividends,theissuancepriceshallbeadjustedproportionallyforcomparison,collectivelyreferredtoastheissuanceprice).IftheclosingpriceoftheCompany’sstockremainsbelowtheissuancepricefor20consecutivetradingdayswithin6monthsaftertheCompany’slisting,ortheclosingpriceofthestockislowerthantheissuancepriceattheendofthe6-monthperiodaftertheCompany’slisting,thelock-upperiodofthesharesheldbytheCompanywillbeautomaticallyextendedby6months.”Duringtheextendedlock-upperiod,theCompanyshallnottransferorentrustotherstomanageYifeng’sharesdirectlyorindirectlyheldbytheCompanyandissuedbeforepublicoffering,norshalltheCompanyrepurchaseYifeng’ssharesdirectlyorindirectlyheldbyitselfandissuedpriortopublicoffering. | 10%oftheCompany’stotal. | ||||||
| Commitmentrelatedtorefinancing | Others | ActualcontrollerGaoYi | IherebyundertakenottointerveneintheCompany’soperationalmanagementactivitiesbeyondmyauthorityandnottomisappropriatetheCompany’sinterests.IundertaketofulfilltherelevantreimbursementmeasuresadoptedbytheCompanyandanycommitmentsmadebymyselfinthisregard.IfIviolatethesecommitmentsandcauselossestotheCompanyorinvestors,Iamwillingtobearthecorrespondinglegalresponsibilitiesinaccordancewiththelaw. | FromAugust10,2022,itshallbeeffectiveinthelongterm. | No | Longterm | Yes |
| Others | ControllingshareholderHouxinVentureCapital | TheinstitutionherebyundertakesnottointerveneintheCompany’soperationalmanagementactivitiesbeyonditsauthorityandnottomisappropriatetheCompany'sinterests.TheinstitutionundertakestofulfilltherelevantreimbursementmeasuresadoptedbytheCompanyandanycommitmentsmadebytheinstitutioninthisregard.IftheinstitutionviolatesthesecommitmentsandcauseslossestotheCompanyorinvestors,theinstitutioniswillingtobearthecorrespondinglegalresponsibilitiesinaccordancewiththelaw. | FromAugust10,2022,itshallbeeffectiveinthelongterm. | No | Longterm | Yes |
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| Others | Alldirectorsandseniormanagement | (i)undertakenottogratuitouslyorunfairlytransferbenefitstootherinstitutionsorindividuals,nortouseothermeanstoharmtheinterestsoftheCompany;(ii)undertaketorestrainanybehaviorsrelatedtoposition-relatedconsumption;(iii)undertakenottousetheCompany’sassetsforinvestmentorconsumptionactivitiesunrelatedtojobduties;(iv)undertakethatthecompensationsystemformulatedbytheBoardofDirectorsortheRemunerationandAppraisalCommitteeshouldbelinkedtotheimplementationofthereimbursementmeasures;(v)IftheCompanylaunchesanequityincentivepolicylater,IundertakethattheannouncedexerciseconditionsoftheCompany’sequityshallbelinkedtotheimplementationofthereimbursementmeasures;(vi)Fromthedateofissuanceofthiscommitmenttothecompletionoftheissuanceofconvertiblecorporatebondstounspecifiedentitiesorindividuals,iftheCSRCissuesnewprovisionsregardingthereimbursementmeasuresandthemycommitments,andthecommitmentsfailtomeettherelevantprovisionsoftheCSRC,IundertaketoreleasedsupplementarycommitmentsinaccordancewiththelatestregulationsoftheCSRCatthattime;(vii)IundertaketoearnestlyfulfilltheCompany'srelevantreimbursementmeasuresandanycommitmentsmadebymyselfinthisregard.IfIviolatethesecommitmentsandcauselossestotheCompanyorinvestors,IamwillingtobearthecorrespondinglegalresponsibilitiestotheCompanyorinvestorsinaccordancewiththelaw. | FromAugust10,2022,itshallbeeffectiveinthelongterm. | No | Longterm | Yes |
| Others | ControllingshareholderHouxinVentureCapitalanditspersonsactinginconcert | 1.TheCompanywilldecidewhethertoparticipateinthesubscriptionoftheconvertiblecorporatebondsofYifengPharmacyChainCo.,Ltd.basedonmarketconditionsandinaccordancewithrelevantlawsandregulations.2.IftheCompanyhasreduceditsholdingsofYifeng’ssharesortheissuedconvertiblecorporatebondsorhasrelevantreductionplans | FromDecember16,2022,itshallbeeffectiveinthelongterm. | No | Longterm | Yes |
/
| YizhifengandYirentang | withinthefirstsixmonthspriortothefirstdayoftheissuanceoftheconvertiblebonds(announcementdateoftheprospectus),theCompanyundertakesnottoparticipateinthesubscriptionoftheconvertiblebondsandwillnotauthorizeotherentitiestoparticipateinthesubscriptionoftheconvertiblebonds.3.IftheCompanyparticipatesinthesubscriptionofYifeng’sconvertiblecorporatebondsandmakesthesubscriptionsuccessfully,theCompanyundertakestostrictlycomplywiththerequirementsofrelevantlawsandregulationsonshort-termtrading.TheCompanyalsoundertakesnottoreduceitsholdingsofYifeng’ssharesorthesubscribedconvertiblecorporatebondswithinsixmonthsfromthefirstdayoftheissuanceoftheconvertiblecorporatebonds(announcementdateoftheprospectus)untiltheissuanceoftheconvertiblecorporatebonds.4.IftheCompanyfailstofulfilltheabovecommitmentsregardingtheissuanceoftheconvertiblecorporatebonds,anyincomederivedfromthiswillbelongtoYifengPharmacyChainCo.,Ltd.,andtheCompanywillbearthelegalresponsibilitiesarisingtherefrominaccordancewiththelaw. | |||||
| Others | Directors,supervisors,andseniormanagement(excludingindependentdirectors,XiaoZaixiang,WanXuemeiandYanJun). | 1.IherebydecidewhethertoparticipateinthesubscriptionoftheconvertiblecorporatebondsofYifengPharmacyChainCo.,Ltd.basedonmarketconditionsandinaccordancewithrelevantlawsandregulations.2.IfIhavereducedmyholdingsofYifeng’ssharesortheissuedconvertiblecorporatebondsorhasrelevantreductionplanswithinthefirstsixmonthspriortothefirstdayoftheissuanceoftheconvertiblebonds(announcementdateoftheprospectus),Iundertakenottoparticipateinthesubscriptionoftheconvertiblebondsandwillnotauthorizeotherentitiestoparticipateinthesubscriptionoftheconvertiblebonds.3.IfIparticipateinthesubscriptionofYifeng’sconvertiblecorporatebondsandmakethe | FromDecember16,2022,itshallbeeffectiveinthelongterm. | No | Longterm | Yes |
/
| subscriptionsuccessfully,Iundertaketostrictlycomplywiththerequirementsofrelevantlawsandregulationsonshort-termtrading.IalsoundertakenottoreducemyholdingsofYifeng’ssharesorthesubscribedconvertiblecorporatebondswithinsixmonthsfromthefirstdayoftheissuanceoftheconvertiblecorporatebonds(announcementdateoftheprospectus)untiltheissuanceoftheconvertiblecorporatebonds.4.IfIfailtofulfilltheabovecommitmentsregardingtheissuanceoftheconvertiblecorporatebonds,anyproceedsderivedfromthiswillbelongtotheCompany,andIwillbearthelegalresponsibilitiesarisingtherefrominaccordancewiththelaw. | ||||||
| Others | IndependentDirector | 1.IundertakenottoparticipateinthesubscriptionoftheconvertiblecorporatebondsissuedbyYifengPharmacyChainCo.,Ltd.,andwillnotauthorizeanyotherentitiestoparticipateinthesubscriptionoftheconvertiblecorporatebonds.2.Mywaiverofsubscriptiontotheissuanceoftheconvertiblecorporatebondsisagenuineexpressionofintention.IfIfailtofulfilltheabovecommitmentsregardingtheissuanceoftheconvertiblebonds,anyincomederivedfromthiswillbelongtotheCompany,andIwillbearthelegalresponsibilitiesarisingtherefrominaccordancewiththelaw. | FromDecember16,2022,itshallbeeffectiveinthelongterm. | No | Longterm | Yes |
| Others | SeniormanagementXiaoZaixiang | IamaseniormanagementofYifengPharmacyChainCo.,Ltd.GiventhatIhavereducedmyholdingsoftheCompany’ssharesorhaveparticipatedintheissuanceofconvertiblebondsorhaverelevantreductionplanswithinthesixmonthsbeforethefirstdayoftheissuanceofconvertiblebondstounspecifiedentitiesorindividuals(hereinafterreferredtoas“theBonds”),IundertakenottoparticipateinthesubscriptionoftheBondsinanyform,norwillIauthorizeanyotherentitytoparticipateinthesubscriptionoftheBonds.IfIfailtofulfilltheaforementionedcommitmentsregardingthe | FromFebruary28,2023,itshallbeeffectiveinthelongterm. | No | Longterm | Yes |
/
| issuanceoftheBonds,anyproceedsderivedfromthiswillbelongtotheCompany.IfthisresultsinlossestotheCompany,IwillbeliabletocompensatetheCompanyinaccordancewiththelaw. | ||||||
| Others | SeniormanagementpersonnelWanXuemeiandYanJun | 1.IundertakenottoparticipateinthesubscriptionoftheBondsinanyform,norwillIauthorizeanyotherentitytoparticipateinthesubscriptionoftheBonds,within6monthsafterthelatestsaleofYifengPharmacystocksortheissuanceofconvertiblebonds.2.Ifthefirstdayoftheissuanceoftheconvertiblebonds(announcementdateoftheprospectus)isbeyondthe6monthsafterthelatestsaleofYifengPharmacystocks,IherebydecidewhethertoparticipateinthesubscriptionoftheconvertiblecorporatebondsofYifengPharmacyChainCo.,Ltd.basedonmarketconditionsandinaccordancewithrelevantlawsandregulations.3.IfIfailtofulfilltheaforementionedcommitmentsregardingtheissuanceoftheBonds,anyproceedsderivedfromthiswillbelongtoYifengPharmacy.IfthisresultsinlossestoYifengPharmacy,IwillbeliabletocompensatetheCompanyinaccordancewiththelaw. | FromMay15,2023,itshallbeeffectiveinthelongterm. | No | Longterm | Yes |
| Others | SeniormanagementpersonnelHuJianxia | 1.IundertakenottoparticipateinthesubscriptionoftheBondsinanyform,norwillIauthorizeanyotherentitytoparticipateinthesubscriptionoftheBonds,within6monthsafterthelatestsaleofYifengPharmacystocksortheissuanceofconvertiblebonds.2.Ifthefirstdayoftheissuanceoftheconvertiblebonds(announcementdateoftheprospectus)isbeyondthe6monthsafterthelatestsaleofYifengPharmacystocks,IherebydecidewhethertoparticipateinthesubscriptionoftheconvertiblecorporatebondsofYifengPharmacyChainCo.,Ltd.basedonmarketconditionsandinaccordancewithrelevantlawsandregulations.3.IfIfailtofulfilltheaforementionedcommitmentsregardingtheissuanceofthe | FromJanuary29,2024,itshallbeeffectiveinthelongterm. | No | Longterm | Yes |
/
/
(ii)IfthereisaprofitforecastfortheCompany'sassetsorprojects,andtheyarestillintheprofitforecastperiodduringthereportingperiod,theCompanyshallexplainwhethertheassetsorprojectsreachtheoriginalprofitforecastandwhy."□Reached""□Notreached""√Notapplicable"(iii)Thefulfillmentoffinancialperformancecommitmentsandtheirimpactonimpairmenttest
ofgoodwill"□Applicable""√Notapplicable"II.ThelistedCompany’snon-operatingfundsoccupiedbythecontrollingshareholdersandthe
relatedparties"□Applicable""√Notapplicable"III.Violationofguarantees"□Applicable""√Notapplicable"IV.ExplanationoftheBoardofDirectorsregardingthe“Non-standardOpinionAuditReport”
fromtheaccountingfirm"□Applicable""√Notapplicable"V.TheCompany’sanalysisanddescriptionofchangesinaccountingpolicies,accounting
estimatesorcorrectionsofmaterialaccountingerrorsaswellasrelevantimpacts(i)TheCompany’sanalysisanddescriptionofchangesinaccountingpolicies,accounting
estimatesaswellasrelevantimpacts"□Applicable""√Notapplicable"(ii)TheCompany’sanalysisanddescriptionofcorrectionsofmaterialaccountingerrorsand
relevantimpacts"□Applicable""√Notapplicable"(iii)Communicationwiththeformeraccountingfirm"□Applicable""√Notapplicable"(iv)Examination&approvalproceduresandotherinformation"□Applicable""√Notapplicable"VI.Appointmentanddismissalofaccountingfirms
Unit:CN?10,000Currency:CNY
| Accountingfirmcurrentlyappoied | |
| Nameofdomesticaccountingfirm | Pan-ChinaCertifiedPublicAccountants(specialgeneralpartnership) |
| Remunerationforthedomesticaccountingfirm | 245.00 |
| Consecutiveyearsforthedomesticaccountingfirmtorenderauditservices | 14 |
/
| NameofCertifiedPublicAccountantsofthedomesticaccountingfirm | WeiWujunandJiangFengfeng |
| AccumulatedyearsfortheCertifiedPublicAccountantsofdomesticaccountingfirmtorenderauditservices | 3 |
Name
| Name | Remuneration | |
| Accountingfirmforinternalcontrolauditing | Pan-ChinaCertifiedPublicAccountants(specialgeneralpartnership) | 55.00 |
Appointmentanddismissalofaccountingfirms"□Applicable""√Notapplicable"Explanationofthechangeofaccountingfirmsduringtheauditingperiod"□Applicable""√Notapplicable"Explanationonauditfeesdecreasingbymorethan20%(including20%)comparedtothepreviousyear"□Applicable""√Notapplicable"VII.Delistingriskanalysis(i)Reasonsfordelistingriskwarning"□Applicable""√Notapplicable"(ii)CountermeasurestobetakenbytheCompany"□Applicable""√Notapplicable"(iii)Circumstancesandreasonsforterminationoflisting"□Applicable""√Notapplicable"VIII.Mattersrelatedtobankruptcyandreorganization"□Applicable""√Notapplicable"IX.Significantlitigationandarbitrationmatters
"□TheCompanyhadsignificantlitigationorarbitrationmattersduringtheyear.""√TheCompanyhadnosignificantlitigationorarbitrationmattersduringtheyear."X.Suspectedviolations,punishment,andrectificationofthelistedCompany,itsDirectors,Supervisors,SeniorManagement,ControllingShareholdersandActualcontroller"□Applicable""√Notapplicable"XI.ExplanationonintegritystatusoftheCompanyanditscontrollingshareholdersandactualcontroller"□Applicable""√Notapplicable"
/
XII.Significantrelatedpartytransactions(i)Relatedpartytransactionsassociatedwithday-to-dayoperations
1.Mattersdisclosedininterimannouncementswithoutfurtherdevelopmentsorchanges"□Applicable""√Notapplicable"
2.Mattersdisclosedininterimannouncementswithfurtherdevelopmentsorchanges"□Applicable""√Notapplicable"
3.Mattersnotdisclosedininterimannouncements"√Applicable""□Notapplicable"
Unit:CN?10,000Currency:CNY
| Partytorelatedpartytransaction | Transactionrelationship | Typeofrelatedpartytransaction | Contentofrelatedpartytransaction | Pricingprincipleforrelatedpartytransaction | Priceofrelatedpartytransaction | Amountofrelatedpartytransactions | Proportiontotheamountofsimilartransactions(%) | Settlementmethodofrelatedpartytransaction | MarketPrice | Reasonsforthegreatdifferencebetweenthetransactionpriceandthereferencepriceinthemarket |
| Jiuzhitanganditsholdingsubsidiaries | Othersaffiliatedpersons | Commoditypurchased | Commodityandproductpurchased | Transactionsshouldbeconductedbasedontheprinciplesoffairnessandimpartiality,andpricingshouldbedeterminedinaccordancewithnationalpoliciesandmarketprinciples.Ingeneral,pricesshouldbecompara | Marketprice | 10,072.62 | 0.64 | Banktransfer/Bankacceptancebill | / | / |
/
| bletothoseforpurchasingorsellingidenticalorsimilarproductsfromunrelatedthirdpartiesandshouldnotsignificantlydeviatefromtheaveragemarketprice. | ||||||||||
| Jiuzhitanganditsholdingsubsidiaries | Othersaffiliatedpersons | Sellinggoods | Commodityandproductpurchased | Transactionsshouldbeconductedbasedontheprinciplesoffairnessandimpartiality,andpricingshouldbedeterminedinaccordancewithnationalpoliciesandmarketprinciples.Ingeneral,pricesshouldbecomparabletothoseforpurchasingorsellingidenticalorsimilar | Marketprice | 1,758.55 | 0.07 | Banktransfer/Bankacceptancebill | / | / |
/
| productsfromunrelatedthirdpartiesandshouldnotsignificantlydeviatefromtheaveragemarketprice. | |||||||
| Total | / | / | 11,831.17 | / | / | / | / |
| Detailsregardingthelarge-scalereturnofgoods | / | ||||||
| Explanationonrelatedpartytransaction | / | ||||||
(ii)Relatedpartytransactionsofacquisitionorsalesofassetsorequity
1.Mattersdisclosedininterimannouncementswithoutfurtherdevelopmentsorchanges"□Applicable""√Notapplicable"
2.Mattersdisclosedininterimannouncementswithfurtherdevelopmentsorchanges"□Applicable""√Notapplicable"
3.Mattersnotdisclosedininterimannouncements"□Applicable""√Notapplicable"
4.Iffinancialperformancecommitmentsareinvolved,thefinancialperformanceachievedduringtheReportingPeriodshouldbedisclosed"□Applicable""√Notapplicable"(iii)Significantrelatedpartytransactionsforjointexternalinvestments
1.Mattersdisclosedininterimannouncementswithoutfurtherdevelopmentsorchanges"□Applicable""√Notapplicable"
2.Mattersdisclosedininterimannouncementswithfurtherdevelopmentsorchanges"□Applicable""√Notapplicable"
3.Mattersnotdisclosedininterimannouncements"□Applicable""√Notapplicable"(iv)Affiliatedtransactionsinvolvingdebtandcredit
1.Mattersdisclosedininterimannouncementswithoutfurtherdevelopmentsorchanges"□Applicable""√Notapplicable"
/
2.Mattersdisclosedininterimannouncementswithfurtherdevelopmentsorchanges"□Applicable""√Notapplicable"
3.Mattersnotdisclosedininterimannouncements"□Applicable""√Notapplicable"(v)FinancialtransactionsbetweentheCompanyandaffiliatedfinancialcompanies,financialcompaniesundertheCompany’scontrol,andrelatedparties"□Applicable""√Notapplicable"(vi)Others"□Applicable""√Notapplicable"XIII.Significantcontractsandtheirfulfillment(i)Informationabouttrusteeship,contracting,andlease
1.Trusteeship"□Applicable""√Notapplicable"
2.Contracting"□Applicable""√Notapplicable"
3.Lease"□Applicable""√Notapplicable"
/
(ii)Guarantee
√Applicable□Notapplicable
Unit:CN?10,000Currency:CNY
| ExternalguaranteesoftheCompany(excludingguaranteestosubsidiaries) | ||||||||||||||
| Guarantor | RelationshipbetweentheguarantorandthelistedCompany | Securedparty | Amountofguarantee | Dateofoccurrenceofguarantee(Signingdateofagreement) | GuaranteeDateofcommencement | GuaranteeMaturitydate | Typeofguarantee | Objectofguarantee(ifany) | Whetherthefulfillmentiscompleted | Whethertheguaranteeisoverdue | Amountofoverdueguarantee | Counter-guarantee | Whethertherelatedpartyisguaranteed | AssociationRelationship |
TotalamountofguaranteesincurredduringtheReportingPeriod(excludingguaranteestosubsidiaries)
| TotalamountofguaranteesincurredduringtheReportingPeriod(excludingguaranteestosubsidiaries) | 0 |
| TotalamountofguaranteebalanceattheendoftheReportingPeriod(A)(excludingguaranteestosubsidiaries) | 0 |
| GuaranteesoftheCompanyanditssubsidiariestosubsidiaries | |
| TotalamountofguaranteesincurredtosubsidiariesduringtheReportingPeriod | 229,500.00 |
| TotalamountofguaranteebalancetosubsidiariesattheendoftheReportingPeriod(B) | 136,637.18 |
| TotalguaranteesoftheCompany(excludingguaranteestosubsidiaries) | |
| Totalamountofguarantees(A+B) | 136,637.18 |
| RatiooftotalguaranteestotheCompany’snetassets(%) | 11.99% |
| Incl.: | |
| Amountofguaranteestoshareholders,actualcontroller,andtheirrelatedparties(C) | 0 |
| Theamountofdebtguaranteeprovideddirectlyorindirectlytoguaranteedpartieswithanasset-liabilityratioexceeding70%(D) | 0 |
| Theamountexceeding50%ofnetassetsinthetotalguaranteeamount(E) | 0 |
/
| Totalamountofguarantee(C+D+E) | 0 |
| Descriptionofpossiblejointliabilityforoutstandingguarantees | |
| Descriptionofguarantee |
(iii)Entrustingotherstoexecuteanycashassetmanagement
1.Entrustedfinancialmanagement
(1)Overviewofentrustedfinancialmanagement"√Applicable""□Notapplicable"
Unit:CN?10,000Currency:CNY
| Type | Sourceoffunds | Amountincurred | Undueamount | Overdueunrecoveredamount |
| Wealthmanagementproductsofbank | Fundraising | 40,000 | 10,400 | 0 |
| Wealthmanagementproductsofbank | Ownfunds | 488,540 | 418,600 | 0 |
Others"□Applicable""√Notapplicable"
(2)Individualentrustedfinancialmanagement"□Applicable""√Notapplicable"Others"□Applicable""√Notapplicable"
(3)Provisionforimpairmentofentrustedfinancialmanagement"□Applicable""√Notapplicable"
2.Entrustedloan
(1)Overviewofentrustedloan"□Applicable""√Notapplicable"
/
Others"□Applicable""√Notapplicable"
(2)Individualentrustedloan"□Applicable""√Notapplicable"Others"□Applicable""√Notapplicable"
(3)Provisionforimpairmentofentrustedloan"□Applicable""√Notapplicable"
3.Others"□Applicable""√Notapplicable"(iv)Othersignificantcontracts"√Applicable""□Notapplicable"
OnApril23,2022,theCompanyenteredintoaStockTransferAgreementforJiuzhitangCo.,Ltd.(hereinafterreferredtoastheStockTransferAgreement)withLiZhenguo.SincethesigningoftheStockTransferAgreement,therehasbeennoeffectiveprogressonrelatedmatters.Followingdeliberationatthe11
th
meetingofthe5
thBoardofDirectorsandthroughmutualagreementbetweenbothparties,itwasdecidedtoterminatethepreviouslysignedStockTransferAgreement.Consequently,anAgreementtoTerminatetheStockTransferAgreementforJiuzhitangCo.,Ltd.wasexecutedonNovember22,2024.
Forfurtherdetails,pleaserefertotheAnnouncementontheTerminationofStockTransferAgreementpublishedontheShanghaiStockExchangewebsite(http://www.sse.com.cn)andtheCompany’sdesignatedinformationdisclosuremediaonNovember22,2024.
/
Descriptionofprogressintheuseofraisedfunds
√Applicable□Notapplicable(i)Overalluseofraisedfunds"√Applicable""□Notapplicable"
Unit:CN?10,000
| Sourceofraisedfunds | In-placetimeofraisedfunds | Totalamountofraisedfunds | Netamountofraisedfunds(1) | Totalinvestmentcommitmentinprospectusorofferingcircular(2) | Totalover-raisedfunds(3)=(1)-(2) | AccumulativetotalamountofraisedfundsbytheendoftheReportingPeriod(4) | Incl.:Accumulatedinvestmentofover-raisedfundsbytheendoftheReportingPeriod(5) | AccumulatedinvestmentprogressofraisedfundsbytheendoftheReportingPeriod(%)(6)=(4)/(1) | Accumulatedinvestmentprogressofover-raisedfundsbytheendoftheReportingPeriod(%)(7)=(5)/(3) | Currentyear'sinvestmentamount(8) | Theproportionofinvestmentamountforthisyear(%)(9)=(8)/(1) | Totalamountofraisedfundswithchangeofuse |
| Issuanceofconvertiblebonds | 2020.6.5 | 158,100.90 | 156,464.67 | 156,464.67 | 0 | 161,764.09 | / | 103.39 | / | 5,621.15 | 3.59 | 32,663.54 |
| Issuanceofconvertiblebonds | 2024.3.8 | 179,743.20 | 178,026.23 | 178,026.23 | 0 | 40,664.60 | / | 22.84 | / | 40,664.60 | 22.84 | 0 |
| Total | / | 337,844.10 | 334,490.90 | 334,490.90 | 0 | 202,428.69 | / | / | / | 46,285.75 | / | 32,663.54 |
Otherexplanations"□Applicable""√Notapplicable"(ii)Detailsofprojectsinvestedbyraisedfunds"√Applicable""□Notapplicable"
1.Detailedusageofraisedfunds
/
"√Applicable""□Notapplicable"
Unit:CN?10,000
| Sourceofraisedfunds | Itemname | Projectnature | Isitaninvestmentprojectcommittedintheprospectusorofferingcircular? | Whetheritinvolveschangingthedirectionofinvestment | Plannedtotalinvestmentofraisedfunds(1) | Investmentamountinthecurrentyear | AccumulativetotalamountofraisedfundsbytheendoftheReportingPeriod(2) | AccumulatedinvestmentprogressbytheendoftheReportingPeriod(%)(3)=(2)/(1) | Thedateonwhichtheprojectisexpectedtobereadyforuse | Whethertheprojecthasbeenclosed | Whethertheinvestmentprogressmeetstheplannedschedule | Thespecificreasonswhytheinvestmentprogressdoesnotmeettheplan | Benefitsrealizedthisyear | ThebenefitsorR&Dachievementsachievedinthisproject | Whethertherehasbeenasignificantchangeinthefeasibilityoftheproject.Ifso,pleasegivethedetails | Surplusamount |
| Issuanceofconvertiblebonds | JiangsuYifengPharmaceuticalProductSortingandProcessingPhaseIProject/// | Operation&management | Yes | No | 16,000.00 | / | 16,128.77 | 100.80 | 2021.7.31 | Yes | Yes | Notapplicable | Notapplicable | Notapplicable | No | 0 |
/
| ///Item | ||||||||||||||||
| Issuanceofconvertiblebonds | ShanghaiYifengPharmaceuticalProductIntelligentSortingCenterProject[Note1]YifengPharmaceutical////Item// | Operation&management | Yes | Yes,thisprojectisnotcanceled,adjustingthetotalinvestmentofraisedfunds//Investment/ | 13,000.00 | / | 21,629.90 | 166.38 | 2023.6.30 | Yes | Yes | Notapplicable | Notapplicable | Notapplicable | No | 0 |
| Issuanceofconvertiblebonds | JiangxiYifengPharmaceuticalIndustrialParkConstructionPhaseIProject/// | Operation&management | Yes | No | 8,000.00 | / | 8,019.26 | 100.24 | 2022.6.30 | Yes | Yes | Notapplicable | Notapplicable | Notapplicable | No | 0 |
/
| //// | ||||||||||||||||
| Issuanceofconvertiblebonds | TheNewChainPharmacyProject//Item | Operation&development | Yes | Yes,thisprojectisnotcanceled,adjustingthetotalinvestmentofraisedfunds///////Investment/ | 68,085.00 | 5,621.15 | 72,774.35 | 106.89 | 2024.1.31 | Yes | Yes | Notapplicable | -7,486.44 | -30,449.85 | No | 0 |
| Issuanceofconvertiblebonds | OldStoreUpgradeandRenovationProject//Item | Operation&management | Yes | Yes,thisprojectisnotcanceled,adjustingthe | 10,015.90 | / | 1,824.07 | 18.21 | 2022.6.30 | Yes | Yes | Notapplicable | Notapplicable | Notapplicable | No | 0 |
/
| totalinvestmentofraisedfunds///////Investment/ | ||||||||||||||||
| Issuanceofconvertiblebonds | DigitalIntelligentManagementPlatformConstructionProject////// | R&D | Yes | No | 4,000.00 | / | 4,002.54 | 100.06 | 2023.3.31 | Yes | Yes | Notapplicable | Notapplicable | Notapplicable | No | 0 |
| Issuanceofconvertiblebonds | WorkingCapitalSupplementation// | Liquiditysupplementationandloanrepayment | Yes | No | 37,363.77 | / | 37,385.20 | 100.06 | / | Yes | Yes | Notapplicable | Notapplicable | Notapplicable | No | 0 |
| Issuan | Jiangsu | Operation | Yes | No | 43,202 | 21,25 | 21,252. | 49.19 | 2027. | No | Yes | Not | Not | Not | Not | Not |
/
| ceofconvertiblebonds | YifengPharmaceuticalProductSortingandProcessingPhaseIProjectJiangsuPhaseII,HubeiPharmaceuticalSortingandProcessingCenter,andHebeiPharmaceuticalWarehouseConstructionProject/////////// | &management | .15 | 2.58 | 58 | 2.28 | applicable | applicable | applicable | applicable | applicable |
/
| Issuanceofconvertiblebonds | /DigitalIntelligentManagementPlatformConstructionProjectYifengDigitalPlatformUpgradeProject/// | R&D | Yes | No | 8,064.20 | 7,252.28 | 7,252.28 | 89.93 | 2025.7.31 | No | Yes | Notapplicable | Notapplicable | Notapplicable | No | Notapplicable |
| Issuanceofconvertiblebonds | TheNewChainPharmacyProject//Item | Operation&development | Yes | No | 126,759.88 | 12,159.70 | 12,159.74 | 9.59 | 2027.4.30 | No | Yes | Notapplicable | -2,834.01 | -2,834.01 | No | Notapplicable |
| Total | / | / | / | / | 334,490.90 | 46,285.71 | 202,428.69 | / | / | / | / | / | / | / | / |
[Note1]:TheShanghaiYifengPharmaceuticalProductIntelligentSortingCenterProjecthasadoptedworkssuchasreplacementandreinforcementofbasementload-bearingduetothecomplexundergroundstructureoftheconstructionsite,softsoilinthefoundationpit,andincreaseddifficultyintheworkoffoundationpitretainingpiles.Besides,thenewlyaddedworkshavealsoextendedtheprojectimplementation,withanadditionalinvestmentofCN?83.9837million."Asachangeinthe"OldStoreUpgradeandRenovationProject",CN?83.6354millionwasinvestedintothe"ShanghaiYifengPharmaceuticalProductIntelligentSortingCenterProject".[Note2]:AsoftheendofDecember2024,thefundsraisedfromtheconvertiblecorporatebondsissuedbytheCompanyin2020havebeenfullyutilized,andallcorrespondingfundraisinginvestmentprojectshavebeencompleted.Allspecialaccountsforraisedfundshavebeenclosed.
2.Detailedusageofover-raisedfunds"□Applicable""√Notapplicable"
/
(iii)ChangesorterminationofprojectsinvestedbyraisedfundsduringtheReportingPeriod"□Applicable""√Notapplicable"
/
(iv)OthercasesoftheuseofraisedfundsduringtheReportingPeriod
1.Advanceinvestmentandreplacementofprojectsinvestedbyraisedfunds"√Applicable""□Notapplicable"
OnJuly25,2024,theCompanyheldthe3
rdmeetingofthe5
thBoardofDirectorsandthe2
ndmeetingofthe5
thBoardofSupervisors.ThesemeetingsdeliberatedandapprovedtheProposalonUseofRaisedFundstoReplaceSelf-raisedFundsPreviouslyInvestedinFund-raisingProjectsandPaidIssuanceExpenses.TheCompanywasauthorizedtouseraisedfundstoreplaceself-raisedfundsamountingtoCN?245.8644million,whichhadbeenpreviouslyinvestedinprojectsandpaidforissuanceexpenses.Thisactioncomplieswiththeregulationallowingreplacementwithinsixmonthsoftheraisedfundsbeingcreditedtotheaccount.
AsofMarch13,2024,theCompany’sactualinvestmentofself-raisedfundsinfund-raisingprojectsamountedtoCN?242,921,129.55.Thespecificdetailsareasfollows:
Unit:CN?10,000
| Itemname | TotalInvestment | ActualSelf-raisedFundsInvested | PercentageinTotalInvestment(%) | ||
| ConstructionInvestment | InitialWorkingCapital/ | Total | |||
| JiangsuPhaseII,HubeiPharmaceuticalSortingandProcessingCenter,andHebeiPharmaceuticalWarehouseConstructionProject | 43,900.23 | 17,210.18 | 0 | 17,210.18 | 39.20 |
| YifengDigitalPlatformUpgradeProject | 8,064.20 | 7,081.93 | 0 | 7,081.93 | 87.82 |
| TheNewChainPharmacyProject | 201,468.36 | / | / | / | / |
| Total | 253,432.79 | 24,292.11 | 24,292.11 | 9.59 | |
AsofMarch13,2024,theCompany’sprepaidissuanceexpensesusingself-raisedfundsamountedtoCN?2,943,275.09.Thespecificdetailsareasfollows:
Unit:CN?10,000
| Item | TotalIssuanceExpenses | PrepaidIssuanceExpensesUsingSelf-raisedFunds(TaxExcluded) |
| UnderwritingandSponsorshipFees | 1,273.58 | / |
| LegalFees | 169.81 | 155.66 |
| AuditandVerificationFees | 120.76 | 84.90 |
| CreditRatingFees | 56.60 | 37.74 |
/
| InformationDisclosureFeesforThisIssuance | 80.19 | / |
| IssuanceHandlingFeesandOtherExpenses | 16.03 | 16.03 |
| Total | 1,716.97 | 294.33 |
Pan-ChinaCertifiedPublicAccountants(specialgeneralpartnership)issuedtheAssuranceReportontheUseofSelf-raisedFundstoPre-investinFund-raisingProjectsandPayIssuanceExpenses(TJS[2024]No.2-98).TheyconcludedthattheSpecialStatementontheUseofSelf-raisedFundstoPre-investinFund-raisingProjectsandPayIssuanceExpensespreparedbyYifengPharmacy’smanagementcomplieswiththeRegulatoryGuidelinesforListedCompaniesNo.2—RegulatoryRequirementsfortheManagementandUseofFundsRaisedbyListedCompanies(Revisedin2022)(ZJHGG[2022]No.15)andtheShanghaiStockExchangeSelf-RegulatoryGuidelinesforListedCompaniesNo.1-StandardizedOperation(RevisedinDecember2023)(SZF[2023]No.193).ItaccuratelyreflectsYifengPharmacy’sactualuseofself-raisedfundstopre-investinfund-raisingprojectsandpayissuanceexpenses.Fordetailedinformation,pleaserefertotheAnnouncementonUsingRaisedFundstoReplaceSelf-raisedFundsPreviouslyInvestedinFund-raisingProjectsandPaidIssuanceExpenses(2024-069)disclosedontheShanghaiStockExchangewebsite(www.see.com.cn)onJuly26,2024.AsofDecember31,2024,alltheaforementionedself-raisedfundspre-investedinfund-raisingprojectsandpaidforissuanceexpenseshavebeenfullyreplaced.
2.Temporaryreplenishmentofworkingcapitalwithidleraisedfunds"√Applicable""□Notapplicable"
(1)Useofidlefundsfromthe2020publicissuanceofconvertiblecorporatebondstotemporarilyreplenishworkingcapital
OnApril26,2023,theCompanyheldthe24
th
meetingofthe4
th
BoardofDirectorsandthe21
st
meetingofthe4
th
BoardofSupervisors.ThesemeetingsdeliberatedandapprovedtheProposalonUsingConvertibleCorporateBondRaisedFundstoTemporarilyReplenishWorkingCapital.TheCompanywasauthorizedtouseuptoCN?210millionoftemporarilyidlefundsraisedfromconvertiblecorporatebondstosupplementworkingcapitalforproductionandoperationactivitiesrelatedtoitsmainbusiness.Theusageperiodwasnottoexceed12monthsfromthedateofBoardapproval.Thesponsorinstitutionandindependentdirectorsexpressedtheirrespectiveopinionsonthismatter.Fordetailedinformation,pleaserefertotheAnnouncementofYifengPharmacyonUsingPartoftheIdleFundsRaisedfromConvertibleCorporateBondstoTemporarilyReplenishWorkingCapital(AnnouncementNo.:2023-029)disclosedontheShanghaiStockExchangewebsite(www.see.com.cn)andstatutorydisclosuremediaonApril28,2023.TheCompanyreturnedalltheactuallyusedraisedfundstothedesignatedaccountforraisedfundsbeforeApril9,2024.
(2)Useofidlefundsfromthe2024publicofferingofconvertiblecorporatebondstotemporarilyreplenishworkingcapitalOnApril16,2024,theCompanyconvenedthe38
th
meetingofthe4
th
BoardofDirectorsandthe
st
meetingofthe4
th
BoardofSupervisors.ThesemeetingsdeliberatedandapprovedtheProposalon
/
UsingPartofIdleRaisedFundstoTemporarilyReplenishWorkingCapital.TheCompanywasauthorizedtouseuptoCN?1.28billionoftemporarilyidlefundsraisedfromconvertiblecorporatebondstosupplementworkingcapitalforproductionandoperationactivitiesrelatedtoitsmainbusiness.Theusageperiodwasnottoexceed12monthsfromthedateofBoardapproval.Thesponsorinstitutionexpresseditsprofessionalopiniononthismatter.Fordetailedinformation,pleaserefertotheAnnouncementofYifengPharmacyonUsingPartofRaisedIdleFundstoTemporarilyReplenishWorkingCapital(AnnouncementNo.:2024-030)disclosedontheShanghaiStockExchangewebsite(www.see.com.cn)andstatutorydisclosuremediaonApril17,2024.AsoftheendoftheReportingPeriod,theCompanyhadutilizedCN?1.28billionofidleraisedfundsfromthe2024publicofferingofconvertiblecorporatebondstotemporarilysupplementworkingcapital.Ofthisamount,CN?37millionhasbeenreturnedtothedesignatedaccountforraisedfunds,leavingabalanceofCN?1.243billionofconvertiblecorporatebondfundsbeingusedtosupplementworkingcapital.
3.Cashmanagementofidleraisedfundsandinvestmentinrelatedproducts"√Applicable""□Notapplicable"
Unit:CN?10,000Currency:CNY
| Boardapprovaldate | Approvedlimitforcashmanagementofraisedfunds | Startingdate | Enddate | Cashmanagementbalanceatperiodend | Whethermaximumbalanceduringtheperiodexceededauthorizedlimit |
| April16,2024 | 40,000 | April16,2024 | April15,2025 | 10,400 | No |
OtherexplanationsNone.
4.Others"□Applicable""√Notapplicable"XIV.Explanationonothersignificantmattersgreatlyaffectingvaluejudgmentandinvestmentdecisions"□Applicable""√Notapplicable"
/
SectionVII.ChangesinSharesandShareholders
I.Changesinsharecapital(i)Sharechangetable
1.Sharechangetable
Unit:Share
| Beforethischange | Increaseordecreaseinthischange(+,-) | Afterthischange | |||||||
| Quantity | Proportion(%) | Newissue | Bonusissue | Sharesconvertedfromreservedfunds | Others | Total | Quantity | Proportion(%) | |
| I.Shareswithtradingrestrictionconditions | 2,463,695 | 0.24 | 492,739 | -2,717,392 | -2,224,653 | 239,042 | 0.02 | ||
| 1.SharesheldbytheState | |||||||||
| 2.Sharesheldbystate-ownedlegalperson | |||||||||
| 3.Sharesheldbyotherdomesticcapital | 2,463,695 | 0.24 | 492,739 | -2,717,392 | -2,224,653 | 239,042 | 0.02 | ||
| Incl.:Sharesheldbydomesticnon-state-ownedlegalperson | |||||||||
| Sharesheldbydomesticnaturalperson | 2,463,695 | 0.24 | 492,739 | -2,717,392 | -2,224,653 | 239,042 | 0.02 | ||
| 4.Sharesheldbyforeigncapital | |||||||||
| Incl.:Sharesheldby | |||||||||
/
| foreignlegalperson | ||||||||
| Sharesheldbyforeignnaturalperson | ||||||||
| II.Shareswithouttradingrestrictionconditions | 1,008,116,102 | 99.76 | 201,623,220 | 2,454,324 | 204,077,544 | 1,212,193,646 | 99.98 | |
| 1.CNYcommonshare | 1,008,116,102 | 99.76 | 201,623,220 | 2,454,324 | 204,077,544 | 1,212,193,646 | 99.98 | |
| 2.Domesticallylistedforeignshares | ||||||||
| 3.Overseaslistedforeignshares | ||||||||
| 4.Others | ||||||||
| III.Totalnumberofshares | 1,010,579,797 | 100 | 202,115,959 | -263,068 | 201,852,891 | 1,212,432,688 | 100 |
2.Descriptionofchangesinshares"√Applicable""□Notapplicable"
(1)TheProposalonProfitDistributionandConversionofCapitalReservesintoShareCapitalPlansfortheYear2023wasreviewedandapprovedatthe39
thmeetingofthe4
thBoardofDirectorsonApril26,2024,andthe2023AnnualGeneralMeetingofShareholdersheldonMay20,2024.Thecapitalconversionisbasedonthetotalsharecapitalontheequityrightsregistrationdate.TheCompanyintendstodistribute2sharesper10sharesheldbyallshareholdersviaconversionofcapitalreservesintosharecapital.Aftertheconversion,thetotalsharecapitaloftheCompanywillincreaseto1,212,695,756shares.ThedistributionplanwascompletedonJune7,2024.
(2)TheProposalonRepurchasingandCancelingPartofRestrictedSharesundertheRestrictedShareIncentivePlanfor2022wasreviewedandapprovedatthe24
th
meetingofthe4
th
BoardofDirectorsonApril26,2024.TheProposalonAdjustingtheQuantityandPriceofRepurchaseandCancellationofPartofRestrictedSharesundertheRestrictedShareIncentivePlanfor2022wasreviewedandapproved
/
atthe40
thmeetingofthe4
thBoardofDirectorsonJune7,2024,resultingintherepurchaseandcancellationof242,816restrictedsharesThisconversionfurtheradjustedtheCompany'stotalsharecapitalto1,212,452,940shares.
(3)The“YifengConvertibleBonds”becameeligibleforconversionintocompanysharesfromSeptember9,2024.BetweenSeptember9,2024,andSeptember30,2024,convertiblebondswithafacevalueofCN?122,000wereconvertedinto3,705A-sharesoftheCompany.ThisconversionfurtheradjustedtheCompany'stotalsharecapitalto1,212,456,645shares.FurtherdetailscanbefoundintheAnnouncementonConvertibleBondConversionResultsandShareChanges(2024-101)disclosedonOctober10,2024.
(4)TheProposalonRepurchasingandCancelingPartofRestrictedSharesundertheRestrictedShareIncentivePlanfor2022wasreviewedandapprovedatthe5
th
meetingofthe5
thBoardofDirectorsonAugust29,2024.TheProposalonAdjustingtheRepurchaseandCancellationPriceofPartofRestrictedSharesundertheRestrictedShareIncentivePlanfor2022wasreviewedandapprovedatthe
th
meetingofthe5
thBoardofDirectorsandthe6
thmeetingofthe5
thBoardofSupervisorsonOctober14,2024,resultingintherepurchaseandcancellationof24,348restrictedshares.ThisconversionfurtheradjustedtheCompany'stotalsharecapitalto1,212,432,297shares.
(5)FromOctober8,2024,toDecember31,2024,“YifengConvertibleBonds”withafacevalueofCN?13,000wereconvertedinto391A-sharesoftheCompany.ThisconversionfurtheradjustedtheCompany'stotalsharecapitalto1,212,432,688shares.FurtherdetailscanbefoundintheAnnouncementonConvertibleBondConversionResultsandShareChanges(2025-001)disclosedonJanuary04,2025.
3.Effectofsharechangesonfinancialindicatorssuchasearningspershareandnetassetsper
shareforthelatestyearandthelatestperiod"√Applicable""□Notapplicable"
DuringtheReportingPeriod,thetotalnumberoftheCompany'ssharesincreasedby201,852,891duetotheprofitdistributionandconversionofcapitalreservesintosharecapital,therepurchaseandcancellationofrestrictedshares,andtheconversionofconvertiblebondstoshares.AttheendoftheReportingPeriod,thetotalsharecapitaloftheCompanywas1,212,432,688shares,withanearningpershareofCN?1.26andanetassetpershareofCN?8.85.
4.OthercontentsdeemednecessarybytheCompanyorrequiredtobedisclosedbythe
securitiesregulatoryauthorities"□Applicable""√Notapplicable"(ii)Changesinrestrictedshares"√Applicable""□Notapplicable"
Unit:Share
| Nameofshareholder | Numberofrestrictedsharesatthebeginning | Numberofrestrictedsharesliftedinthe | Numberofrestrictedsharesincreasedinthe | Numberofsharesrepurchasedandcanceledinthecurrent | Numberofrestrictedsharesattheendoftheyear | ReasonsforRestriction | Dateoflifting |
/
| oftheyear | currentyear | currentyear | year | ||||
| Thefirstgrantoftherestrictedshareincentiveplanin2022 | 2,073,680 | 2,233,560 | 414,736 | 243,432 | 11,424 | Incentiverecipientsleavingtheirpositionsorbeingdemoted,resultingintheirgrantedrestrictedsharesnotbeingeligibleforunlocking | 2024.10.18 |
| Thereservedgrantoftherestrictedshareincentiveplanin2022 | 390,015 | 216,668 | 78,003 | 23,732 | 227,618 | Reservedgrantlock-upperiod | 2024.10.25 |
| Total | 2,463,695 | 2,450,228 | 492,739 | 267,164 | 239,042 | / | / |
II.Offeringandlistingofsecurities(i)SecuritiesissuanceduringtheReportingPeriod"□Applicable""√Notapplicable"ExplanationonsecuritiesissuanceduringtheReportingPeriod(Forbondswithdifferentinterestratesduringthetenure,respectively):
"□Applicable""√Notapplicable"(ii)DescriptionofchangesintheCompany’stotalnumberofsharesandshareholderstructure,andassetandliabilitystructure"□Applicable""√Notapplicable"(iii)Existinginternalemployeeshare"□Applicable""√Notapplicable"III.Shareholdersanddefactocontroller(s)(i)Totalnumberofshareholders
| TotalnumberofcommonshareholdersattheendoftheReportingPeriod | 24,049 |
| TotalnumberofcommonshareholdersasoftheendofthepreviousmonthbeforethedisclosuredateoftheAnnualReport | 20,069 |
| TotalnumberofpreferredshareholderswithrestoredvotingrightsattheendoftheReporting | 0 |
/
| Period | |
| TotalnumberofpreferredshareholderswithrestoredvotingrightsattheendofthepreviousmonthbeforethedisclosuredateoftheAnnualReport | 0 |
(ii)Shareholdingofthetop10shareholdersandtop10shareholdersofcirculatingshares
(withouttradingrestrictionconditions)attheendoftheReportingPeriod
Unit:Share
| Shareholdingofthetop10shareholders(notincludingthelendingofsharesthroughrefinancingbusiness) | |||||||
| Nameofshareholder(Fullname) | Increase/DecreaseduringtheReportingPeriod | NumberofsharesheldattheendoftheReportingPeriod | Proportion(%) | Numberofshareswithtradingrestrictionconditionsheld | Pledge,tagorfreezing | Shareholderfeature | |
| Sharestatus | Quantity | ||||||
| HongKongSecuritiesClearingCompanyLimited | 106,551,518 | 274,292,874 | 22.62 | 0 | None | Others | |
| NingboMeishanFreeTradePortAreaHouxinVentureCapitalPartnership(LimitedPartnership) | 43,748,796 | 262,492,776 | 21.65 | 0 | None | Others | |
| GaoYi | 23,580,211 | 141,481,267 | 11.67 | 0 | None | Domesticnaturalperson | |
| CAPITALTODAYINVESTMENTXV（HK）LIMITED | 19,421,875 | 116,531,251 | 9.61 | 0 | None | Foreignlegalperson | |
| CAPITALTODAYINVESTMENTXIV（HK）LIMITED | 19,311,802 | 115,870,810 | 9.56 | 0 | None | Foreignlegalperson | |
| IndustrialandCommercialBankofChinaLimited-ZhongOuMedicalandHealthHybridSecuritiesInvestment | -4,080,825 | 15,521,889 | 1.28 | 0 | None | Others | |
/
| Fund | |||||||
| NingboMeishanFreeTradePortAreaYizhifengEnterpriseManagementPartnership(LimitedPartnership) | 2,115,464 | 12,692,782 | 1.05 | 0 | None | Others | |
| AgriculturalBankofChinaLimited-CSI500ExchangeTradedOpen-endIndexSecuritiesInvestmentFund | 5,841,380 | 8,647,458 | 0.71 | 0 | None | Others | |
| HanHongchang | 221,872 | 6,005,232 | 0.5 | 0 | None | Domesticnaturalperson | |
| NingboMeishanFreeTradePortAreaYirentangEnterpriseManagementPartnership(LimitedPartnership) | 969,411 | 5,816,466 | 0.48 | 0 | None | Others | |
| Shareholdingofthetop10shareholderswithouttradingrestrictionconditions(notincludingthelendingofsharesthroughrefinancingbusiness) | |||||||
| Nameofshareholder | Numberofcirculatingshareswithouttradingrestrictionconditionsheld | Typeandquantityofshares | |||||
| Type | Quantity | ||||||
| HongKongSecuritiesClearingCompanyLimited | 274,292,874 | CNYcommonshare | 274,292,874 | ||||
| NingboMeishanFreeTradePortAreaHouxinVentureCapitalPartnership(LimitedPartnership) | 262,492,776 | CNYcommonshare | 262,492,776 | ||||
| GaoYi | 141,481,267 | CNYcommonshare | 141,481,267 | ||||
| CAPITALTODAYINVESTMENTXV（HK）LIMITED | 116,531,251 | CNYcommonshare | 116,531,251 | ||||
| CAPITALTODAYINVESTMENTXIV（HK）LIMITED | 115,870,810 | CNYcommonshare | 115,870,810 | ||||
| IndustrialandCommercialBankofChinaLimited-ZhongOuMedicalandHealthHybrid | 15,521,889 | CNYcommonshare | 15,521,889 | ||||
/
| SecuritiesInvestmentFund | |||
| NingboMeishanFreeTradePortAreaYizhifengEnterpriseManagementPartnership(LimitedPartnership) | 12,692,782 | CNYcommonshare | 12,692,782 |
| AgriculturalBankofChinaLimited-CSI500ExchangeTradedOpen-endIndexSecuritiesInvestmentFund | 8,647,458 | CNYcommonshare | 8,647,458 |
| HanHongchang | 6,005,232 | CNYcommonshare | 6,005,232 |
| NingboMeishanFreeTradePortAreaYirentangEnterpriseManagementPartnership(LimitedPartnership) | 5,816,466 | CNYcommonshare | 5,816,466 |
| Descriptionofrepurchaseaccountsamongthetop10shareholders | None | ||
| Explanationonabove-mentionedshareholders’involvementinentrusting/beingentrustedwithandwaivingvotingrights | None | ||
| Explanationonassociationorconcertedactionoftheabove-mentionedshareholders | Amongtheaforementionedshareholders,Houxin,Yizhifeng,andYirentangareenterprisescontrolledbyMr.GaoYi,theactualcontrolleroftheCompany.ThereisanaffiliationbetweenGaoYi,Houxin,Yizhifeng,andYirentang.CAPITALTODAYINVESTMENTXV(HK)LIMITEDandCAPITALTODAYINVESTMENTXIV(HK)LIMITEDarebothcontrolledbyCapitalTodayRiverFund,L.P.ThereisanaffiliationbetweenCAPITALTODAYINVESTMENTXV(HK)LIMITEDandCAPITALTODAYINVESTMENTXIV(HK)LIMITED.Descriptionofunknownassociationorconcertedactionoftheabove-mentionedshareholders | ||
| Explanationonpreferredshareholderswithrestoredvotingrightsandnumberofsharesheld | None | ||
Participationinrefinancingbusinessbyshareholdersholdingmorethan5%,toptenshareholders,andtoptenunrestrictedshareholders"□Applicable""√Notapplicable"Changesinshareholdingsoftoptenshareholdersandtoptenunrestrictedshareholdersduetorefinancinglendingorreturncomparedtothepreviousperiod"□Applicable""√Notapplicable"Numberofsharesheldbythetop10shareholderswithtradingrestrictionconditionsandrelevantrestrictionconditions"□Applicable""√Notapplicable"(iii)Situation(ifany)whereastrategicinvestororgenerallegalpersonbecomesoneoftop10shareholdersduetoplacementofnewshares"□Applicable""√Notapplicable"
/
IV.Controllingshareholdersanddefactocontroller(s)(i)Controllingshareholder
1.Legalperson"√Applicable""□Notapplicable"
| Name | NingboMeishanFreeTradePortAreaHouxinVentureCapitalPartnership(LimitedPartnership) |
| Peroninchargeorlegalrepresentative | ChangshaYizhikangConsultingCo.,Ltd.(AppointedRepresentative:HuZongliang) |
| Dateofestablishment | 9/12/2006 |
| Mainbusiness | Venturecapital(limitedtounlistedcompanies) |
| EquityofotherdomesticandoverseaslistedcompaniesviacontrolandparticipationoftheshareholderduringtheReportingPeriod | None |
| Additionalinformation | None |
2.Naturalperson"□Applicable""√Notapplicable"
3.Specialdescriptionoftheabsenceofacontrollingshareholder"□Applicable""√Notapplicable"
4.ExplanationonchangesincontrollingshareholdersduringtheReportingPeriod"□Applicable""√Notapplicable"
5.BlockdiagramofthepropertyrightsandcontrolrelationshipbetweentheCompanyandthe
controllingshareholder"√Applicable""□Notapplicable"
(ii)Defactocontroller
1.Legalperson"□Applicable""√Notapplicable"
/
2.Naturalperson"√Applicable""□Notapplicable"
| Name | GaoYi |
| Nationality | Chinese |
| Whethertoobtainresidencyinothercountriesorregions | No |
| Occupationandtitle | PresidentandChairman |
| Domesticallyandoverseaslistedcompaniescontrolledoverthepast10years | None |
3.SpecialdescriptionthattheCompanyhasnodefactocontrollers"□Applicable""√Notapplicable"
4.ChangesincontrollingrightsduringtheReportingPeriod"□Applicable""√Notapplicable"
5.BlockdiagramoftheownershipandcontrolrelationshipbetweentheCompanyandthede
factocontroller"√Applicable""□Notapplicable"
6.ControloftheCompanybythedefactocontrollerthroughtrustorotherassetmanagement
means"□Applicable""√Notapplicable"
/
(iii)Otherinformationaboutcontrollingshareholdersandactualcontroller"□Applicable""√Notapplicable"V.Thecumulativenumberofsharespledgedbythecontrollingshareholderorthelargest
shareholderoftheCompanyanditspersonsactinginconcertreached80%ofthenumberofsharesheldbythemintheCompany."□Applicable""√Notapplicable"VI.Othercorporateshareholdersholdingmorethan10%ofshares"□Applicable""√Notapplicable"VII.Restrictionsonshareholdingreduction"□Applicable""√Notapplicable"VIII.SpecificimplementationofsharerepurchaseduringtheReportingPeriod"□Applicable""√Notapplicable"
SectionVIII.OverviewofPreferredShare
"□Applicable""√Notapplicable"
SectionIX.OverviewofBonds
I.Companybonds(includingcorporatebonds)andnon-financialcorporatedebtfinancinginstruments"□Applicable""√Notapplicable"II.Convertiblecorporatebonds"√Applicable""□Notapplicable"III.Convertiblebondissuance"√Applicable""□Notapplicable"
WithapprovalfromtheChinaSecuritiesRegulatoryCommission(CSRCApproval[2024]No.109),theCompanyissued17,974,320convertiblebondstonon-specificinvestorsonMarch4,2024.EachbondhasafacevalueofCN?100,resultinginatotalissuanceamountofCN?1,797.432million.Thebondshaveasix-yeartermfromthedateofissuance(March4,2024toMarch3,2030),withthefollowingannualcouponrates:0.30%forthefirstyear,0.50%forthesecondyear,1.00%forthethirdyear,1.50%forthefourthyear,1.80%forthefifthyear,and
2.00%forthesixthyear.
OnMarch27,2024,“YifengConvertibleBonds”(BondCode:113682)werelistedfortradingontheShanghaiStockExchange.TheinitialconversionpricewassetatCN?39.85pershare,withaconversionperiodfromSeptember8,2024toMarch3,2030(ifaconversiondatefallsonastatutoryholidayorrestday,itwillbepostponedtothenextworkingday;interestpaymentsduringanyextensionperiodwillnotaccrueadditionalinterest).IV.ConvertiblebondholdersandguarantorsduringtheReportingPeriod"√Applicable""□Notapplicable"
| Nameofconvertiblecorporatebonds | YifengConvertibleBonds | |
| Numberofconvertiblebondholdersattheendoftheperiod | 16,752 | |
| GuarantorfortheCompany’sconvertiblebonds | None | |
| Thetoptenconvertiblebondholdersareasfollows: | ||
| Nameofconvertiblebondholder | Amountheldatendofperiod(CN?) | Proportionheld(%) |
| ChinaMerchantsBankCo.,Ltd.-BoseraCSIConvertibleBondandExchangeableBondETF | 75,247,000 | 4.19 |
| NingboMeishanFreeTradePortAreaHouxinVenture | 67,923,000 | 3.78 |
| CapitalPartnership(LimitedPartnership) | ||
| IndustrialandCommercialBankofChinaLimited-CUAMConvertibleBondFund | 55,051,000 | 3.06 |
| NorthwestInvestmentManagement(HongKong)Limited-NorthwestFlyingDragonFundLimited | 52,836,000 | 2.94 |
| RuizhongLifeInsuranceCo.,Ltd.-ParticipatingProducts | 47,083,000 | 2.62 |
| BasicPensionInsuranceFundPortfolioNo.111 | 46,500,000 | 2.59 |
| ChinaPacificLifeInsuranceCo.,Ltd.-Dividend-IndividualDividend | 45,101,000 | 2.51 |
| FounderSecuritiesCo.,Ltd. | 40,000,000 | 2.23 |
| NationalSocialSecurityFundPortfolioNo.414 | 38,786,000 | 2.16 |
| IndustrialandCommercialBankofChinaLimited-CUAMDualIncomeBondFund | 36,890,000 | 2.05 |
V.ChangesinconvertiblebondsduringtheReportingPeriod"□Applicable""√Notapplicable"CumulativeconversionofbondsduringtheReportingPeriod"√Applicable""□Notapplicable"
| Nameofconvertiblecorporatebonds | YifengConvertibleBonds |
| AmountconvertedduringtheReportingPeriod(CN?) | 135,000 |
| NumberofsharesconvertedduringtheReportingPeriod(shares) | 4,096 |
| Cumulativenumberofsharesconverted(shares) | 4,096 |
| Cumulativeconvertedsharesasapercentageoftotalsharesissuedbeforeconversion(%) | 0.0003 |
| Amountnotyetconverted(CN?) | 1,797,297,000 |
| Percentageofunconvertedbondsrelativetototalbondsissued(%) | 99.9925 |
VI.Historicaladjustmentstoconversionprice"√Applicable""□Notapplicable"
Unit:CN?Currency:CNY
| Nameofconvertiblecorporatebonds | ||||
| Dateofconversionpriceadjustment | Adjustedconversionprice | Disclosuredate | Disclosuremedia | ExplanationforconversionpriceadjustmentDescription |
| June7,2024 | 32.79 | May31,2024 | ShanghaiStockExchange | Annualequitydistributionforyear2023 |
| October15,2024 | 32.54 | October09,2024 | ShanghaiStockExchange | Semi-annualequitydistributionforyear2024 |
| LatestconversionpriceasoftheendoftheReportingPeriod | 32.54 | |||
VII.TheCompany’sdebtposition,creditratingchanges,andfuturecasharrangementsfor
debtrepayment"√Applicable""□Notapplicable"
TheCompanyengagedChinaLianheCreditRatingCo.,Ltd.toconductafollow-upcreditassessmentoftheCompanyanditsconvertiblecorporatebondsissuedinMarch2024.FollowingacomprehensiveanalysisandevaluationoftheCompany’soperationalstatus,ChinaLianheissuedthe2024Follow-upRatingReportonYifengPharmacyChainCo.,Ltd.’sConvertibleCorporateBondsIssuedtoNon-specificTargetsonJune21,2024.Thereportassignedan“AA”ratingtoboththeCompany’smainbodyandthe“YifengConvertibleBonds”,withtheratingoutlookmaintainedas“stable”.VIII.Additionalinformationonconvertiblebonds"□Applicable""√Notapplicable"
SectionX.FinancialStatements
I.Auditreport?Applicable?NotApplicable
Auditor’sReportPCCPAAR[2025]No.2-390
TotheShareholdersofYifengPharmacyChainCo.,Ltd.:
I.AuditOpinionWehaveauditedthefinancialstatementsofYifengPharmacyChainCo.,Ltd.(the“Company”),whichcomprisetheconsolidatedandparentcompanybalancesheetsasatDecember31,2024,theconsolidatedandparentcompanyincomestatements,consolidatedandparentcompanycashflowstatements,andconsolidatedandparentcompanystatementsofchangesinequityfortheyearthenended,aswellasnotestofinancialstatements.Inouropinion,theaccompanyingfinancialstatementspresentfairly,inallmaterialrespects,thefinancialpositionoftheCompanyasatDecember31,2024,anditsfinancialperformanceanditscashflowsfortheyearthenendedinaccordancewithChinaAccountingStandardsforBusinessEnterprises.II.BasisforAuditOpinionWeconductedourauditinaccordancewithChinaStandardsonAuditing.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheCertifiedPublicAccountant’sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.WeareindependentoftheCompanyinaccordancewiththeChinaCodeofEthicsforCertifiedPublicAccountants,andwehavefulfilledotherethicalresponsibilities.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.III.KeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasa
whole,andinformingouropinionthereon,andwedonotexpressaseparateopiniononthesematters.(I)Revenuerecognition
1.KeyauditmattersPleaserefertosectionIII(XXII),V(II)1andXV(I)2ofnotestothefinancialstatementsfordetails.TheCompanyismainlyengagedinpharmaceuticalsalesbusiness.In2024,theoperatingrevenueamountedto24,062.15millionyuan,ofwhich,20,357.90millionyuanwasfrompharmaceuticalsalesbusiness,accountingfor84.61%.AsoperatingrevenueisthekeyperformanceindicatorsoftheCompany,theremightbeinherentrisksthattheCompany’smanagement(the“Management”)adoptsinappropriaterevenuerecognitiontoachievespecificgoalsorexpectations.Astheinherentriskofmisstatementishigh,wehaveidentifiedrevenuerecognitionasakeyauditmatter.
2.ResponsiveauditproceduresOurmainauditproceduresforrevenuerecognitionareasfollows:
(1)Weobtainedunderstandingsofkeyinternalcontrolsrelatedtorevenuerecognition,assessedthedesignofthesecontrols,determinedwhethertheyhadbeenexecuted,andtestedtheeffectivenessoftheoperation;
(2)Wecheckedsalescontracts,obtainedunderstandingsofmaincontractualtermsorconditions,andassessedwhethertherevenuerecognitionmethodwasappropriate;
(3)Weperformedanalysisprocedureonoperatingrevenueandgrossmarginbymonth,product,store,etc.,soastoidentifywhethertherearesignificantorabnormalfluctuationsandfindoutthereason;
(4)Forrevenuefrompharmaceuticalwholesale,wecheckedsupportingdocumentsrelatedtoselecteditems,includingsalescontracts,orders,salesinvoices,outbounddeliveryorders,deliverynotes,shippingdocuments,deliveryreceipts,etc.；
(5)Weperformedrationalityanalysisprocedureonrevenuefrompharmaceuticalretail,includingUPTandATV,andcheckedbusinesseswiththeirsalesdetails,paymentrecords,accountingtreatments,etc.toassesswhetherthereareabnormal
sales;
(6)Wecross-checkedthedataofinformationsystem,includingdrugretailbusinessmanagementsystemandbusinessprocessesofSAPinformationsystem；
(7)Wecheckedbanktransactionflows,bankstatements,andreconciliationtableforoutstandingaccounts,andverifiedsalesreturnrecords；
(8)Weperformedconfirmationproceduresonaccountsreceivablewithlargeamount(mainlyfromwholesalecustomers),revenuefrompromotionalservicefeesandwholesalebusinesswithlargeamount,andcheckedsalesreturnrecordssubsequenttothebalancesheetdate；
(9)Weperformedcut-offteststocheckwhethertherevenuewasrecognizedintheappropriateperiod;
(10)Wecheckedwhetherinformationrelatedtooperatingrevenuehadbeenpresentedappropriatelyinthefinancialstatements.(II)Impairmentofgoodwill
1.KeyauditmattersPleaserefertosectionIII(XVII)andV(I)18ofnotestothefinancialstatementsfordetails.AsofDecember31,2024,thecostofgoodwillamountedto4,790.07millionyuan,withprovisionforimpairmentof21.13millionyuan,andthecarryingamountamountedto4,768.94millionyuan.Forassetgrouporassetgroupportfoliorelatedtogoodwill,theManagementwillperformimpairmenttestongoodwilltogetherwithrelatedassetgrouporassetgroupportfolio,andtherecoverableamountofrelatedassetgrouporassetgroupportfolioisdeterminedbasedontheestimatedpresentvalueoffuturecashflows.AstheamountofgoodwillissignificantandimpairmenttestinvolvessignificantjudgmentoftheManagement,wehaveidentifiedimpairmentofgoodwillasakeyauditmatter.
2.ResponsiveauditproceduresOurmainauditproceduresforimpairmentofgoodwillareasfollows:
(1)Weobtainedunderstandingsofkeyinternalcontrolsrelatedtoimpairmentofgoodwill,assessedthedesignofthesecontrols,determinedwhethertheyhadbeen
executed,andtestedtheeffectivenessoftheoperation;
(2)WereviewedtheoutcomeoftheManagement’spreviousestimatesonthepresentvalueoffuturecashflowsortheirsubsequentre-estimations;
(3)Weassessedthecompetency,professionalqualityandobjectivityofexternalappraisersengagedbytheManagement;
(4)WeassessedtheappropriatenessandconsistencyofimpairmenttestmethodadoptedbytheManagement；
(5)Weassessedtheappropriatenessofsignificantassumptionsusedinimpairmenttestandreviewedwhetherrelevantassumptionswereconsistentwithoveralleconomyenvironment,industrycondition,managementsituation,historicalexperience,operationplan,andotherassumptionsrelatedtofinancialstatementsusedbytheManagement；
(6)Weassessedtheappropriateness,relevanceandreliabilityofdatausedbytheManagementintheimpairmenttestandreviewedtheconsistencyofrelatedinformationintheimpairmenttest;
(7)WetestedwhethertheManagement’scalculationofpresentvalueofestimatedfuturecashflowswasaccurate;
(8)Wecheckedwhetherinformationrelatedtoimpairmentofgoodwillhadbeenpresentedappropriatelyinthefinancialstatements.IV.OtherInformationTheManagementisresponsiblefortheotherinformation.TheotherinformationcomprisestheinformationincludedintheCompany’sannualreport,butdoesnotincludethefinancialstatementsandourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.
If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementoftheotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.V.ResponsibilitiesoftheManagementandThoseChargedwithGovernancefortheFinancialStatementsTheManagementisresponsibleforpreparingandpresentingfairlythefinancialstatementsinaccordancewithChinaAccountingStandardsforBusinessEnterprises,aswellasdesigning,implementingandmaintaininginternalcontrolrelevanttothepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,theManagementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlesstheManagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.VI.CertifiedPublicAccountant’sResponsibilitiesfortheAuditoftheFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithChinaStandardsonAuditingwillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.WeexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheauditperformedinaccordancewithChinaStandardsonAuditing.Wealso:
(I)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.(II)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.(III)EvaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebytheManagement.(IV)ConcludeontheappropriatenessoftheManagement’suseofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.(V)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.(VI)ObtainsufficientandappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheCompanytoexpressanopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceofthegroupaudit.Weremainsoleresponsibilityforourauditopinion.Wecommunicatewiththosechargedwithgovernanceregardingtheplannedauditscope,timescheduleandsignificantauditfindings,includinganydeficienciesininternalcontrolofconcernthatweidentifyduringouraudit.
Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
Pan-ChinaCertifiedPublicAccountantsLLPChineseCertifiedPublicAccountant:
(EngagementPartner)Hangzhou·ChinaChineseCertifiedPublicAccountant:
DateofReport:April,28,2025
Theauditor’sreportandtheaccompanyingfinancialstatementsareEnglishtranslationsoftheChineseauditor’sreportandstatutoryfinancialstatementspreparedunderaccountingprinciplesandpracticesgenerallyacceptedinthePeople’sRepublicofChina.Thesefinancialstatementsarenotintendedtopresentthefinancialpositionandfinancialperformanceandcashflowsinaccordancewithaccountingprinciplesandpracticesgenerallyacceptedinothercountriesandjurisdictions.IncasetheEnglishversiondoesnotconformtotheChineseversion,theChineseversionprevails.
II.Financialstatement
ConsolidatedBalanceSheet
December31,2024Preparedby:YifengPharmacyChainCo.,Ltd.Unit:yuan
| Assets | NoteNo. | December31,2024 | December31,2023 |
| Currentassets: | |||
| Cashandbankbalances | VII.1 | 3,578,925,577.22 | 3,565,905,738.81 |
| Settlementfunds | |||
| Loanstootherbanks | |||
| Held-for-tradingfinancialassets | VII.2 | 4,406,809,254.46 | 1,630,720,887.94 |
| Derivativefinancialassets | VII.3 | ||
| Notesreceivable | VII.4 | ||
| Accountsreceivable | VII.5 | 2,123,984,911.43 | 2,138,274,319.88 |
| Receivablesfinancing | VII.7 | 29,445,006.56 | 11,889,888.58 |
| Advancespaid | VII.8 | 302,853,987.72 | 141,493,810.64 |
| Premiumsreceivable | |||
| Reinsuranceaccountsreceivable | |||
| Reinsurancereservereceivable | |||
| Otherreceivables | VII.9 | 477,936,663.36 | 448,538,089.70 |
| Including:Interestsreceivable | |||
| Dividendsreceivable | |||
| Financialassetsunderreverserepo | |||
| Inventories | VII.10 | 4,528,102,252.16 | 3,807,963,660.86 |
| Including:Dataresources | |||
| Contractassets | VII.6 | ||
| Assetsheldforsale | VII.11 | ||
| Non-currentassetsduewithinoneyear | VII.12 | ||
| Othercurrentassets | VII.13 | 407,724,560.60 | 384,124,342.84 |
| Totalcurrentassets | 15,855,782,213.51 | 12,128,910,739.25 | |
| Non-currentassets: | |||
| Loansandadvances | |||
| Debtinvestments | VII.14 | 189,241,469.56 | 154,167,777.78 |
| Otherdebtinvestments | VII.15 | ||
| Long-termreceivables | VII.16 | ||
| Long-termequityinvestments | VII.17 | 5,565,690.31 | |
| Otherequityinstrumentinvestments | VII.18 | 339,971,600.00 | 432,225,200.00 |
| Othernon-currentfinancialassets | VII.19 | 1,010,000.00 | 1,010,000.00 |
| Investmentproperty | VII.20 | ||
| Fixedassets | VII.21 | 1,572,779,628.81 | 1,524,048,536.46 |
| Constructioninprogress | VII.22 | 228,582,939.93 | 175,121,866.79 |
| Productivebiologicalassets | VII.23 | ||
| Oil&gasassets | VII.24 | ||
| Right-of-useassets | VII.25 | 3,877,665,712.04 | 3,965,884,425.82 |
| Intangibleassets | VII.26 | 483,092,605.02 | 470,972,498.88 |
| Including:Dataresources | |||
| Developmentexpenditures | 3,224,343.96 | 3,496,698.64 | |
| Including:Dataresources | |||
| Goodwill | VII.27 | 4,768,942,152.07 | 4,610,549,279.24 |
| Long-termprepayments | VII.28 | 490,655,208.74 | 495,647,138.93 |
| Deferredtaxassets | VII.29 | 148,623,164.08 | 138,670,316.75 |
| Othernon-currentassets | VII.30 | 15,165,912.63 | 30,269,025.79 |
| Totalnon-currentassets | 12,118,954,736.84 | 12,007,628,455.39 | |
| Totalassets | 27,974,736,950.35 | 24,136,539,194.64 |
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
ConsolidatedBalanceSheet(Continued)
December31,2024Preparedby:YifengPharmacyChainCo.,Ltd.Unit:yuan
| Liabilities&Equity | NoteNo. | December31,2024 | December31,2023 |
| Currentliabilities: | |||
| Short-termborrowings | VII.32 | 30,026,388.89 | |
| Centralbankloans | |||
| Loansfromotherbanks | |||
| Held-for-tradingfinancialliabilities | VII.33 | ||
| Derivativefinancialliabilities | VII.34 | ||
| Notespayable | VII.35 | 7,537,483,385.03 | 6,215,388,292.66 |
| Accountspayable | VII.36 | 1,954,806,180.26 | 1,955,564,568.05 |
| Advancesreceived | VII.37 | 22,884,188.22 | 15,959,550.59 |
| Contractliabilities | VII.38 | 130,070,603.90 | 80,166,931.03 |
| Financialliabilitiesunderrepo | |||
| Absorbingdepositandinterbankdeposit | |||
| Depositsforagencysecuritytransaction | |||
| Depositsforagencysecurityunderwriting | |||
| Employeebenefitspayable | VII.39 | 494,221,039.80 | 463,733,610.00 |
| Taxesandratespayable | VII.40 | 307,964,252.94 | 263,088,153.57 |
| Otherpayables | VII.41 | 772,207,599.54 | 810,446,678.28 |
| Including:Interestpayable | |||
| Dividendspayable | 296,927.48 | ||
| Handlingfeesandcommissionspayable | |||
| Reinsuranceaccountspayable | |||
| Liabilitiesheldforsale | VII.42 | ||
| Non-currentliabilitiesduewithinoneyear | VII.43 | 1,337,097,538.31 | 1,458,466,797.74 |
| Othercurrentliabilities | VII.44 | 11,312,523.92 | 6,656,678.33 |
| Totalcurrentliabilities | 12,598,073,700.81 | 11,269,471,260.25 | |
| Non-currentliabilities: | |||
| Insurancepolicyreserve | |||
| Long-termborrowings | VII.45 | 133,617,147.68 | |
| Bondspayable | VII.46 | 1,601,308,876.07 | |
| Including:Preferredshares | |||
| Perpetualbonds | |||
| Leaseliabilities | VII.47 | 2,312,747,455.05 | 2,205,510,311.80 |
| Long-termpayables | VII.48 | ||
| Long-termemployeebenefitspayable | VII.49 | ||
| Provisions | VII.50 | ||
| Deferredincome | VII.51 | 53,632,642.01 | 54,094,246.44 |
| Deferredtaxliabilities | VII.29 | 15,410,798.48 | 26,758,566.63 |
| Othernon-currentliabilities | VII.52 | ||
| Totalnon-currentliabilities | 3,983,099,771.61 | 2,419,980,272.55 | |
| Totalliabilities | 16,581,173,472.42 | 13,689,451,532.80 | |
| Equity: | |||
| Sharecapital | VII.53 | 1,212,432,688.00 | 1,010,579,797.00 |
| Otherequityinstruments | VII.54 | 221,566,198.54 | |
| Including:Preferredshares | |||
| Perpetualbonds | |||
| Capitalreserve | VII.55 | 3,650,526,983.94 | 3,842,147,881.80 |
| Less:Treasuryshares | VII.56 | 3,764,535.58 | 42,238,481.15 |
| Othercomprehensiveincome | VII.57 | -47,773,490.51 | 21,416,709.49 |
| Specialreserve | VII.58 | ||
| Surplusreserve | VII.59 | 326,019,567.19 | 198,282,150.00 |
| Generalriskreserve | |||
| Undistributedprofit | VII.60 | 5,366,679,611.84 | 4,774,244,419.42 |
| Totalequityattributabletotheparentcompany | 10,725,687,023.42 | 9,804,432,476.56 | |
| Non-controllinginterest | 667,876,454.51 | 642,655,185.28 | |
| Totalequity | 11,393,563,477.93 | 10,447,087,661.84 | |
| Totalliabilities&equity | 27,974,736,950.35 | 24,136,539,194.64 |
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
BalanceSheetofParentCompany
December31,2024Preparedby:YifengPharmacyChainCo.,Ltd.Unit:yuan
| Assets | NoteNo. | December31,2024 | December31,2023 |
| Currentassets: | |||
| Cashandbankbalances | 2,389,484,809.58 | 2,589,345,354.69 | |
| Held-for-tradingfinancialassets | 3,703,600,282.21 | 972,143,189.04 | |
| Derivativefinancialassets | |||
| Notesreceivable | |||
| Accountsreceivable | XIX.1 | 512,755,888.79 | 487,341,632.68 |
| Receivablesfinancing | |||
| Advancespaid | 2,964,936,397.76 | 2,212,269,168.23 | |
| Otherreceivables | XIX.2 | 1,727,018,841.91 | 1,376,615,421.54 |
| Including:Interestsreceivable | 855,724.12 | ||
| Dividendsreceivable | 1,124,634,282.78 | 581,621,336.22 | |
| Inventories | 500,061,226.49 | 480,579,869.08 | |
| Including:Dataresources | |||
| Contractassets | |||
| Assetsheldforsale | |||
| Non-currentassetsduewithinoneyear | |||
| Othercurrentassets | 164,751,923.57 | 128,463,091.48 | |
| Totalcurrentassets | 11,962,609,370.31 | 8,246,757,726.74 | |
| Non-currentassets: | |||
| Debtinvestments | 189,241,469.56 | 154,167,777.78 | |
| Otherdebtinvestments | |||
| Long-termreceivables | |||
| Long-termequityinvestments | XIX.3 | 2,650,755,329.68 | 2,600,755,329.68 |
| Otherequityinstrumentinvestments | |||
| Othernon-currentfinancialassets | |||
| Investmentproperty | |||
| Fixedassets | 168,429,376.36 | 170,678,947.01 | |
| Constructioninprogress | |||
| Productivebiologicalassets | |||
| Oil&gasassets | |||
| Right-of-useassets | 833,784,605.61 | 869,222,301.66 | |
| Intangibleassets | 157,591,834.11 | 142,328,025.69 | |
| Including:Dataresources | |||
| Developmentexpenditures | 3,224,343.96 | 3,496,698.64 | |
| Including:Dataresources | |||
| Goodwill | 405,394,296.50 | 405,394,296.50 |
| Long-termprepayments | 107,617,499.73 | 114,167,539.56 | |
| Deferredtaxassets | 11,449,290.40 | 13,867,342.16 | |
| Othernon-currentassets | 1,090,681.83 | 2,213,162.21 | |
| Totalnon-currentassets | 4,528,578,727.74 | 4,476,291,420.89 | |
| Totalassets | 16,491,188,098.05 | 12,723,049,147.63 |
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
BalanceSheetofParentCompany(Continued)
December31,2024Preparedby:YifengPharmacyChainCo.,Ltd.Unit:yuan
| Liabilities&Equity | NoteNo. | December31,2024 | December31,2023 |
| Currentliabilities: | |||
| Short-termborrowings | |||
| Held-for-tradingfinancialliabilities | |||
| Derivativefinancialliabilities | |||
| Notespayable | 6,515,567,162.42 | 5,387,925,216.92 | |
| Accountspayable | 219,220,432.67 | 187,161,288.67 | |
| Advancesreceived | 928,338.21 | 1,155,174.30 | |
| Contractliabilities | 21,070,717.28 | 10,965,578.24 | |
| Employeebenefitspayable | 140,085,602.16 | 127,618,574.05 | |
| Taxesandratespayable | 40,639,436.33 | 28,669,793.51 | |
| Otherpayables | 854,421,387.49 | 455,998,486.77 | |
| Including:Interestspayable | |||
| Dividendspayable | |||
| Liabilitiesheldforsale | |||
| Non-currentliabilitiesduewithinoneyear | 320,125,314.71 | 380,118,769.83 | |
| Othercurrentliabilities | 1,201,795.93 | 552,665.15 | |
| Totalcurrentliabilities | 8,113,260,187.20 | 6,580,165,547.44 | |
| Non-currentliabilities: | |||
| Long-termborrowings | 133,617,147.68 | ||
| Bondspayable | 1,601,308,876.07 | ||
| Including:Preferredshares | |||
| Perpetualbonds | |||
| Leaseliabilities | 516,938,349.94 | 488,787,821.39 | |
| Long-termpayables | |||
| Long-termemployeebenefitspayable | |||
| Provisions | |||
| Deferredincome | 20,892.80 | ||
| Deferredtaxliabilities | |||
| Othernon-currentliabilities | |||
| Totalnon-currentliabilities | 2,118,247,226.01 | 622,425,861.87 | |
| Totalliabilities | 10,231,507,413.21 | 7,202,591,409.31 | |
| Equity: | |||
| Sharecapital/Paid-incapital | 1,212,432,688.00 | 1,010,579,797.00 | |
| Otherequityinstruments | 221,566,198.54 | ||
| Including:Preferredshares | |||
| Perpetualbonds |
| Capitalreserve | 3,648,511,932.47 | 3,840,152,133.25 | |
| Less:Treasuryshares | 3,764,535.58 | 42,238,481.15 | |
| Othercomprehensiveincome | |||
| Specialreserve | |||
| Surplusreserve | 326,019,567.19 | 198,282,150.00 | |
| Undistributedprofit | 854,914,834.22 | 513,682,139.22 | |
| Totalequity | 6,259,680,684.84 | 5,520,457,738.32 | |
| Totalliabilities&equity | 16,491,188,098.05 | 12,723,049,147.63 |
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
ConsolidatedIncomeStatement
JanuarytoDecember,2024Preparedby:YifengPharmacyChainCo.,Ltd.Unit:yuan
| Items | NoteNo. | 2024 | 2023 |
| I.Totaloperatingrevenue | 24,062,154,701.73 | 22,588,227,402.22 | |
| Including:Operatingrevenue | VII.61 | 24,062,154,701.73 | 22,588,227,402.22 |
| Interestincome | |||
| Premiumsearned | |||
| Revenuefromhandlingfeesandcommissions | |||
| II.Totaloperatingcost | 21,973,892,618.65 | 20,616,597,464.58 | |
| Including:Operatingcost | VII.61 | 14,408,310,539.42 | 13,957,598,854.74 |
| Interestexpenses | |||
| Handlingfeesandcommissions | |||
| Surrendervalue | |||
| Netpaymentofinsuranceclaims | |||
| Netprovisionofinsurancepolicyreserve | |||
| Premiumbonusexpenditures | |||
| Reinsuranceexpenses | |||
| Taxesandsurcharges | VII.62 | 95,485,533.50 | 89,389,002.35 |
| Sellingexpenses | VII.63 | 6,179,375,830.54 | 5,487,450,160.02 |
| Administrativeexpenses | VII.64 | 1,082,881,741.13 | 962,424,859.48 |
| R&Dexpenses | VII.65 | 33,935,812.25 | 33,549,984.91 |
| Financialexpenses | VII.66 | 173,903,161.81 | 86,184,603.08 |
| Including:Interestexpenses | 221,373,934.51 | 160,528,586.40 | |
| Interestincome | 72,647,179.88 | 93,286,397.47 | |
| Add:Otherincome | VII.67 | 57,736,157.07 | 76,134,913.66 |
| Investmentincome(orless:losses) | VII.68 | 108,128,784.49 | 42,372,208.53 |
| Including:Investmentincomefromassociatesandjointventures | -901.40 | 316,574.96 | |
| Gainsfromderecognitionoffinancialassetsatamortizedcost | |||
| Gainsonforeignexchange(orless:losses) | |||
| Gainsonnetexposuretohedgingrisk(orless:losses) | VII.69 | ||
| Gainsonchangesinfairvalue(orless:losses) | VII.70 | ||
| Creditimpairmentloss | VII.71 | 2,154,986.62 | -4,537,333.68 |
| Assetsimpairmentloss | VII.72 | -102,396,476.85 | -72,633,545.68 |
| Gainsonassetdisposal(orless:losses) | VII.73 | 49,938,810.67 | 41,818,933.72 |
| III.Operatingprofit(orless:losses) | 2,203,824,345.08 | 2,054,785,114.19 | |
| Add:Non-operatingrevenue | VII.74 | 12,735,226.42 | 12,704,923.41 |
| Less:Non-operatingexpenditures | VII.75 | 34,112,189.78 | 29,896,117.67 |
| IV.Profitbeforetax(orless:totalloss) | 2,182,447,381.72 | 2,037,593,919.93 | |
| Less:Incometaxexpenses | VII.76 | 529,665,095.86 | 456,662,974.49 |
| V.Netprofit(orless:netloss) | 1,652,782,285.86 | 1,580,930,945.44 | |
| (I)Categorizedbythecontinuityofoperations | |||
| 1.Netprofitfromcontinuingoperations(orless:netloss) | 1,652,782,285.86 | 1,580,930,945.44 | |
| 2.Netprofitfromdiscontinuedoperations(orless:netloss) | |||
| (II)Categorizedbytheportionofequityownership | |||
| 1.Netprofitattributabletoownersofparentcompany(orless:netloss) | 1,528,576,669.36 | 1,411,985,024.41 | |
| 2.Netprofitattributabletonon-controllingshareholders(orless:netloss) | 124,205,616.50 | 168,945,921.03 | |
| VI.Othercomprehensiveincomeaftertax | VII.77 | -69,190,200.00 | 38,418,418.54 |
| Itemsattributabletotheownersoftheparentcompany | -69,190,200.00 | 38,418,418.54 | |
| (I)Nottobereclassifiedsubsequentlytoprofitorloss | -69,190,200.00 | 38,418,418.54 | |
| 1.Remeasurementsofthenetdefinedbenefitplan | |||
| 2.Itemsunderequitymethodthatwillnotbereclassifiedtoprofitorloss | |||
| 3.Changesinfairvalueofotherequityinstrumentinvestments | -69,190,200.00 | 38,418,418.54 | |
| 4.Changesinfairvalueofowncreditrisk | |||
| (II)Tobereclassifiedsubsequentlytoprofitorloss | |||
| 1.Itemsunderequitymethodthatmaybereclassifiedtoprofitorloss | |||
| 2.Changesinfairvalueofotherdebtinvestments | |||
| 3.Profitorlossfromreclassificationoffinancialassetsintoothercomprehensiveincome | |||
| 4.Provisionforcreditimpairmentofotherdebtinvestments | |||
| 5.Cashflowhedgingreserve | |||
| 6.Translationreserve | |||
| 7.Others | |||
| Itemsattributabletonon-controllingshareholders | |||
| VII.Totalcomprehensiveincome | 1,583,592,085.86 | 1,619,349,363.98 | |
| Itemsattributabletotheownersoftheparentcompany | 1,459,386,469.36 | 1,450,403,442.95 | |
| Itemsattributabletonon-controllingshareholders | 124,205,616.50 | 168,945,921.03 | |
| VIII.Earningspershare(EPS): | |||
| (I)BasicEPS(yuanpershare) | 1.26 | 1.17 | |
| (II)DilutedEPS(yuanpershare) | 1.24 | 1.17 |
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
IncomeStatementofParentCompany
JanuarytoDecember,2024Preparedby:YifengPharmacyChainCo.,Ltd.Unit:yuan
| Items | NoteNo. | 2024 | 2023 |
| I.Operatingrevenue | XIX.4 | 5,169,633,573.85 | 4,842,155,820.34 |
| Less:Operatingcost | XIX.4 | 3,154,503,823.60 | 3,089,767,071.53 |
| Taxesandsurcharges | 14,051,745.43 | 14,020,761.78 | |
| Sellingexpenses | 1,438,119,971.46 | 1,276,782,981.45 | |
| Administrativeexpenses | 400,974,763.91 | 374,674,994.87 | |
| R&Dexpenses | 17,101,823.72 | 13,982,978.42 | |
| Financialexpenses | 43,546,950.56 | -21,125,905.27 | |
| Including:Interestexpenses | 86,721,723.25 | 40,682,565.32 | |
| Interestincome | 54,480,436.10 | 72,060,729.92 | |
| Add:Otherincome | 15,987,074.36 | 14,475,454.01 | |
| Investmentincome(orless:losses) | XIX.5 | 1,208,890,279.29 | 600,876,424.57 |
| Including:Investmentincomefromassociatesandjointventures | |||
| Gainsfromderecognitionoffinancialassetsatamortizedcost | |||
| Gainsonnetexposuretohedgingrisk(orless:losses) | |||
| Gainsonchangesinfairvalue(orless:losses) | |||
| Creditimpairmentloss | 976,187.01 | -3,813,565.50 | |
| Assetsimpairmentloss | -11,960,811.21 | -10,494,191.46 | |
| Gainsonassetdisposal(orless:losses) | 12,997,917.35 | 5,131,144.70 | |
| II.Operatingprofit(orless:losses) | 1,328,225,141.97 | 700,228,203.88 | |
| Add:Non-operatingrevenue | 2,409,520.98 | 1,132,102.04 | |
| Less:Non-operatingexpenditures | 9,986,404.54 | 10,705,794.40 | |
| III.Profitbeforetax(orless:totalloss) | 1,320,648,258.41 | 690,654,511.52 | |
| Less:Incometaxexpenses | 43,274,086.47 | 28,493,481.71 | |
| IV.Netprofit(orless:netloss) | 1,277,374,171.94 | 662,161,029.81 | |
| (I)Netprofitfromcontinuingoperations(orless:netloss) | 1,277,374,171.94 | 662,161,029.81 | |
| (II)Netprofitfromdiscontinuedoperations(orless:netloss) | |||
| V.Othercomprehensiveincomeaftertax | |||
| (I)Nottobereclassifiedsubsequentlytoprofitorloss | |||
| 1.Remeasurementsofthenetdefinedbenefitplan | |||
| 2.Itemsunderequitymethodthatwillnotbereclassifiedtoprofitorloss | |||
| 3.Changesinfairvalueofotherequityinstrumentinvestments | |||
| 4.Changesinfairvalueofowncreditrisk | |||
| (II)Tobereclassifiedsubsequentlytoprofitorloss | |||
| 1.Itemsunderequitymethodthatmaybereclassifiedtoprofitorloss | |||
| 2.Changesinfairvalueofotherdebtinvestments | |||
| 3.Profitorlossfromreclassificationoffinancialassetsintoothercomprehensiveincome |
| 4.Provisionforcreditimpairmentofotherdebtinvestments | |||
| 5.Cashflowhedgingreserve | |||
| 6.Translationreserve | |||
| 7.Others | |||
| VI.Totalcomprehensiveincome | 1,277,374,171.94 | 662,161,029.81 | |
| VII.Earningspershare(EPS): | |||
| (I)BasicEPS(yuanpershare) | |||
| (II)DilutedEPS(yuanpershare) |
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
ConsolidatedCashFlowStatement
JanuarytoDecember,2024Preparedby:YifengPharmacyChainCo.,Ltd.Unit:yuan
| Items | NoteNo. | 2024 | 2023 |
| I.Cashflowsfromoperatingactivities: | |||
| Cashreceiptsfromsaleofgoodsorrenderingofservices | 25,476,899,360.23 | 23,683,336,044.51 | |
| Netincreaseofclientdepositandinterbankdeposit | |||
| Netincreaseofcentralbankloans | |||
| Netincreaseofloansfromotherfinancialinstitutions | |||
| Cashreceiptsfromoriginalinsurancecontractpremium | |||
| Netcashreceiptsfromreinsurance | |||
| Netincreaseofpolicy-holderdepositandinvestment | |||
| Cashreceiptsfrominterest,handlingfeesandcommissions | |||
| Netincreaseofloansfromothers | |||
| Netincreaseofrepurchase | |||
| Netcashreceiptsfromagencysecuritytransaction | |||
| Receiptsoftaxrefund | |||
| Othercashreceiptsrelatedtooperatingactivities | VII.78 | 288,148,116.91 | 450,020,711.44 |
| Subtotalofcashinflowsfromoperatingactivities | 25,765,047,477.14 | 24,133,356,755.95 | |
| Cashpaymentsforgoodspurchasedandservicesreceived | 14,557,574,284.25 | 13,337,334,333.88 | |
| Netincreaseofloansandadvancestoclients | |||
| Netincreaseofcentralbankdepositandinterbankdeposit | |||
| Cashpaymentsforinsuranceindemnitiesoforiginalinsurancecontracts | |||
| Netincreaseofloanstoothers | |||
| Cashpaymentsforinterest,handlingfeesandcommissions | |||
| Cashpaymentsforpolicybonus | |||
| Cashpaidtoandonbehalfofemployees | 3,939,587,865.71 | 3,661,988,972.50 | |
| Cashpaymentsfortaxesandrates | 1,327,948,156.21 | 1,308,087,630.24 | |
| Othercashpaymentsrelatedtooperatingactivities | VII.78 | 1,718,670,086.44 | 1,202,205,023.73 |
| Subtotalofcashoutflowsfromoperatingactivities | 21,543,780,392.61 | 19,509,615,960.35 | |
| Netcashflowsfromoperatingactivities | 4,221,267,084.53 | 4,623,740,795.60 | |
| II.Cashflowsfrominvestingactivities: | |||
| Cashreceiptsfromwithdrawalofinvestments | 7,104,317.53 | 450,000.00 | |
| Cashreceiptsfrominvestmentincome | 17,084,000.00 | 17,084,000.00 | |
| Netcashreceiptsfromthedisposaloffixedassets,intangibleassetsandotherlong-termassets | 66,273,150.18 | 15,780,909.19 | |
| Netcashreceiptsfromthedisposalofsubsidiaries&otherbusinessunits | |||
| Othercashreceiptsrelatedtoinvestingactivities | VII.78 | 16,015,012,371.92 | 3,682,480,295.18 |
| Subtotalofcashinflowsfrominvestingactivities | 16,105,473,839.63 | 3,715,795,204.37 | |
| Cashpaymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-termassets | 682,673,370.81 | 739,924,631.96 | |
| Cashpaymentsforinvestments | 53,621,041.95 |
| Items | NoteNo. | 2024 | 2023 |
| Netincreaseofpledgedborrowings | |||
| Netcashpaymentsfortheacquisitionofsubsidiaries&otherbusinessunits | 254,664,562.64 | 498,820,605.67 | |
| Othercashpaymentsrelatedtoinvestingactivities | VII.78 | 18,776,985,007.48 | 5,403,750,000.00 |
| Subtotalofcashoutflowsfrominvestingactivities | 19,714,322,940.93 | 6,696,116,279.58 | |
| Netcashflowsfrominvestingactivities | -3,608,849,101.30 | -2,980,321,075.21 | |
| III.Cashflowsfromfinancingactivities: | |||
| Cashreceiptsfromabsorbinginvestments | 5,938,756.58 | 17,040,791.00 | |
| Including:Cashreceivedbysubsidiariesfromnon-controllingshareholdersasinvestments | 5,938,756.58 | 9,650,000.00 | |
| Cashreceiptsfromborrowings | 30,000,000.00 | ||
| Othercashreceiptsrelatedtofinancingactivities | VII.78 | 1,783,932,000.00 | |
| Subtotalofcashinflowsfromfinancingactivities | 1,819,870,756.58 | 17,040,791.00 | |
| Cashpaymentsfortherepaymentofborrowings | 175,337,093.40 | 84,359,893.40 | |
| Cashpaymentsfordistributionofdividendsorprofitsandforinterestexpenses | 951,468,847.52 | 416,763,539.36 | |
| Including:Cashpaidbysubsidiariestonon-controllingshareholdersasdividendorprofit | 104,925,012.93 | 94,880,937.07 | |
| Othercashpaymentsrelatedtofinancingactivities | VII.78 | 1,613,265,067.97 | 1,608,956,587.47 |
| Subtotalofcashoutflowsfromfinancingactivities | 2,740,071,008.89 | 2,110,080,020.23 | |
| Netcashflowsfromfinancingactivities | -920,200,252.31 | -2,093,039,229.23 | |
| IV.Effectofforeignexchangeratechangesoncashandcashequivalents | |||
| V.Netincreaseincashandcashequivalents | -307,782,269.08 | -449,619,508.85 | |
| Add:Openingbalanceofcashandcashequivalents | 2,468,580,139.60 | 2,918,199,648.45 | |
| VI.Closingbalanceofcashandcashequivalents | 2,160,797,870.52 | 2,468,580,139.60 |
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
CashFlowStatementofParentCompany
JanuarytoDecember,2024Preparedby:YifengPharmacyChainCo.,Ltd.Unit:yuan
| Items | NoteNo. | 2024 | 2023 |
| I.Cashflowsfromoperatingactivities: | |||
| Cashreceiptsfromsaleofgoodsandrenderingofservices | 5,459,309,352.34 | 4,913,634,231.73 | |
| Receiptsoftaxrefund | |||
| Othercashreceiptsrelatedtooperatingactivities | 677,861,418.77 | 311,864,356.44 | |
| Subtotalofcashinflowsfromoperatingactivities | 6,137,170,771.11 | 5,225,498,588.17 | |
| Cashpaymentsforgoodspurchasedandservicesreceived | 2,891,477,889.03 | 1,589,164,751.18 | |
| Cashpaidtoandonbehalfofemployees | 979,694,321.23 | 919,703,595.62 | |
| Cashpaymentsfortaxesandrates | 202,826,061.87 | 129,163,756.25 | |
| Othercashpaymentsrelatedtooperatingactivities | 611,935,648.54 | 830,703,798.67 | |
| Subtotalofcashoutflowsfromoperatingactivities | 4,685,933,920.67 | 3,468,735,901.71 | |
| Netcashflowsfromoperatingactivities | 1,451,236,850.44 | 1,756,762,686.46 | |
| II.Cashflowsfrominvestingactivities: | |||
| Cashreceiptsfromwithdrawalofinvestments | |||
| Cashreceiptsfrominvestmentincome | 614,613,954.16 | 72,230,797.25 | |
| Netcashreceiptsfromthedisposaloffixedassets,intangibleassetsandotherlong-termassets | 6,433,342.37 | 4,960,151.28 | |
| Netcashreceiptsfromthedisposalofsubsidiaries&otherbusinessunits | |||
| Othercashreceiptsrelatedtoinvestingactivities | 9,531,072,523.22 | 2,398,465,799.26 | |
| Subtotalofcashinflowsfrominvestingactivities | 10,152,119,819.75 | 2,475,656,747.79 | |
| Cashpaymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-termassets | 116,153,725.80 | 133,579,184.57 | |
| Cashpaymentsforinvestments | |||
| Netcashpaymentsfortheacquisitionofsubsidiaries&otherbusinessunits | 15,964,452.34 | 30,346,303.14 | |
| Othercashpaymentsrelatedtoinvestingactivities | 12,266,000,000.00 | 3,460,000,000.00 | |
| Subtotalofcashoutflowsfrominvestingactivities | 12,398,118,178.14 | 3,623,925,487.71 | |
| Netcashflowsfrominvestingactivities | -2,245,998,358.39 | -1,148,268,739.92 | |
| III.Cashflowsfromfinancingactivities: | |||
| Cashreceiptsfromabsorbinginvestments | 7,390,791.00 | ||
| Cashreceiptsfromborrowings | |||
| Othercashreceiptsrelatedtofinancingactivities | 1,783,932,000.00 | ||
| Subtotalofcashinflowsfromfinancingactivities | 1,783,932,000.00 | 7,390,791.00 | |
| Cashpaymentsfortherepaymentofborrowings | 175,337,093.40 | 84,359,893.40 | |
| Cashpaymentsfordistributionofdividendsorprofitsandforinterestexpenses | 817,854,886.72 | 300,267,449.66 | |
| Othercashpaymentsrelatedtofinancingactivities | 313,433,937.11 | 338,759,264.61 | |
| Subtotalofcashoutflowsfromfinancingactivities | 1,306,625,917.23 | 723,386,607.67 | |
| Netcashflowsfromfinancingactivities | 477,306,082.77 | -715,995,816.67 |
| Items | NoteNo. | 2024 | 2023 |
| IV.Effectofforeignexchangeratechangesoncashandcashequivalents | |||
| V.Netincreaseincashandcashequivalents | -317,455,425.18 | -107,501,870.13 | |
| Add:Openingbalanceofcashandcashequivalents | 1,731,205,281.35 | 1,838,707,151.48 | |
| VI.Closingbalanceofcashandcashequivalents | 1,413,749,856.17 | 1,731,205,281.35 |
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
/
YifengPharmacyChainCo.,Ltd.ConsolidatedstatementofchangesinequityfortheyearendedDecember31,2024(ExpressedinRenminbiYuan)
| Items | Currentperiodcumulative | ||||||||||||
| Equityattributabletoparentcompany | Non-controllinginterest | Totalequity | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserve | Less:Treasuryshares | Othercomprehensiveincome | Specialreserve | Surplusreserve | Generalriskreserve | Undistributedprofit | |||||
| Preferredshares | Perpetualbonds | Others | |||||||||||
| I.Balanceattheendofprioryear | 1,010,579,797.00 | 3,842,147,881.80 | 42,238,481.15 | 21,416,709.49 | 198,282,150.00 | 4,774,244,419.42 | 642,655,185.28 | 10,447,087,661.84 | |||||
| Add:Cumulativechangesofaccountingpolicies | |||||||||||||
| Errorcorrectionofpriorperiod | |||||||||||||
| Businesscombinationundercommoncontrol | |||||||||||||
| Others | |||||||||||||
| II.Balanceatthebeginningofcurrentyear | 1,010,579,797.00 | 3,842,147,881.80 | 42,238,481.15 | 21,416,709.49 | 198,282,150.00 | 4,774,244,419.42 | 642,655,185.28 | 10,447,087,661.84 | |||||
| III.Currentperiodincrease(orless:decrease) | 201,852,891.00 | 221,566,198.54 | -191,620,897.86 | -38,473,945.57 | -69,190,200.00 | 127,737,417.19 | 592,435,192.42 | 25,221,269.23 | 946,475,816.09 | ||||
| (I)Totalcomprehensiveincome | -69,190,200.00 | 1,528,576,669.36 | 124,205,616.50 | 1,583,592,085.86 | |||||||||
| (II)Capitalcontributedorwithdrawnbyowners | -263,068.00 | 221,566,198.54 | 10,475,758.22 | -38,473,945.57 | 5,938,756.58 | 276,191,590.91 | |||||||
| 1.Ordinarysharescontributedbyowners | 221,582,841.00 | 5,938,756.58 | 227,521,597.58 | ||||||||||
| 2.Capitalcontributedbyholdersofotherequityinstruments | |||||||||||||
| 3.Amountofshare-basedpaymentincludedinequity | 14,075,129.20 | 14,075,129.20 | |||||||||||
| 4.Others | -263,068.00 | -16,642.46 | -3,599,370.98 | -38,473,945.57 | 34,594,864.13 | ||||||||
| (III)Profitdistribution | 19,302.92 | 127,737,417.19 | -936,141,476.94 | -104,923,103.85 | -913,307,860.68 | ||||||||
| 1.Appropriationofsurplusreserve | 127,737,417.19 | -127,737,417.19 | |||||||||||
| 2.Appropriationofgeneralriskreserve | |||||||||||||
| 3.Appropriationofprofittoowners | -808,404,059.75 | -104,925,012.93 | -913,329,072.68 | ||||||||||
| 4.Others | 19,302.92 | 1,909.08 | 21,212.00 | ||||||||||
| (IV)Internalcarry-overwithinequity | 202,115,959.00 | -202,115,959.00 | |||||||||||
| 1.Transferofcapitalreservetocapital | 202,115,959.00 | -202,115,959.00 | |||||||||||
| 2.Transferofsurplusreservetocapital | |||||||||||||
| 3.Surplusreservetocoverlosses | |||||||||||||
| 4.Changesindefinedbenefitplancarriedovertoretainedearnings | |||||||||||||
| 5.Othercomprehensiveincomecarriedovertoretainedearnings | |||||||||||||
| 6.Others | |||||||||||||
| (V)Specialreserve | |||||||||||||
| 1.Currentperiodappropriation | |||||||||||||
| 2.Currentperioduse | |||||||||||||
| (VI)Others | |||||||||||||
| IV.Balanceattheendofcurrentperiod | 1,212,432,688.00 | 221,566,198.54 | 3,650,526,983.94 | 3,764,535.58 | -47,773,490.51 | 326,019,567.19 | 5,366,679,611.84 | 667,876,454.51 | 11,393,563,477.93 | ||||
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
/
YifengPharmacyChainCo.,Ltd.ConsolidatedstatementofchangesinequityfortheyearendedDecember31,2024(continued)(ExpressedinRenminbiYuan)
| Items | Precedingperiodcomparative | ||||||||||||
| Equityattributabletoparentcompany | Non-controllinginterest | Totalequity | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserve | Less:Treasuryshares | Othercomprehensiveincome | Specialreserve | Surplusreserve | Generalriskreserve | Undistributedprofit | |||||
| Preferredshares | Perpetualbonds | Others | |||||||||||
| I.Balanceattheendofprioryear | 721,704,930.00 | 4,076,700,083.91 | 77,410,952.00 | -17,001,709.05 | 132,066,047.02 | 3,717,157,469.99 | 565,388,458.93 | 9,118,604,328.80 | |||||
| Add:Cumulativechangesofaccountingpolicies | |||||||||||||
| Errorcorrectionofpriorperiod | |||||||||||||
| Businesscombinationundercommoncontrol | |||||||||||||
| Others | |||||||||||||
| II.Balanceatthebeginningofcurrentyear | 721,704,930.00 | 4,076,700,083.91 | 77,410,952.00 | -17,001,709.05 | 132,066,047.02 | 3,717,157,469.99 | 565,388,458.93 | 9,118,604,328.80 | |||||
| III.Currentperiodincrease(orless:decrease) | 288,874,867.00 | -234,552,202.11 | -35,172,470.85 | 38,418,418.54 | 66,216,102.98 | 1,057,086,949.43 | 77,266,726.35 | 1,328,483,333.04 | |||||
| (I)Totalcomprehensiveincome | 38,418,418.54 | 1,411,985,024.41 | 168,945,921.03 | 1,619,349,363.98 | |||||||||
| (II)Capitalcontributedorwithdrawnbyowners | 192,895.00 | 44,845,600.30 | -35,172,470.85 | 3,201,742.39 | 83,412,708.54 | ||||||||
| 1.Ordinarysharescontributedbyowners | 390,015.00 | 7,000,776.00 | 7,390,791.00 | 9,650,000.00 | 9,650,000.00 | ||||||||
| 2.Capitalcontributedbyholdersofotherequityinstruments | |||||||||||||
| 3.Amountofshare-basedpaymentincludedinequity | 41,169,112.30 | 41,169,112.30 | |||||||||||
| 4.Others | -197,120.00 | -3,324,288.00 | -42,563,261.85 | -6,448,257.61 | 32,593,596.24 | ||||||||
| (III)Profitdistribution | 9,284,169.59 | 66,216,102.98 | -354,898,074.98 | -94,880,937.07 | -374,278,739.48 | ||||||||
| 1.Appropriationofsurplusreserve | 66,216,102.98 | -66,216,102.98 | |||||||||||
| 2.Appropriationofgeneralriskreserve | |||||||||||||
| 3.Appropriationofprofittoowners | -288,681,972.00 | -94,880,937.07 | -383,562,909.07 | ||||||||||
| 4.Others | 9,284,169.59 | 9,284,169.59 | |||||||||||
| (IV)Internalcarry-overwithinequity | 288,681,972.00 | -288,681,972.00 | |||||||||||
| 1.Transferofcapitalreservetocapital | 288,681,972.00 | -288,681,972.00 | |||||||||||
| 2.Transferofsurplusreservetocapital | |||||||||||||
| 3.Surplusreservetocoverlosses | |||||||||||||
| 4.Changesindefinedbenefitplancarriedovertoretainedearnings | |||||||||||||
| 5.Othercomprehensiveincomecarriedovertoretainedearnings | |||||||||||||
| 6.Others | |||||||||||||
| (V)Specialreserve | |||||||||||||
| 1.Currentperiodappropriation | |||||||||||||
| 2.Currentperioduse | |||||||||||||
| (VI)Others | |||||||||||||
| IV.Balanceattheendofcurrentperiod | 1,010,579,797.00 | 3,842,147,881.80 | 42,238,481.15 | 21,416,709.49 | 198,282,150.00 | 4,774,244,419.42 | 642,655,185.28 | 10,447,087,661.84 | |||||
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
/
YifengPharmacyChainCo.,Ltd.
ParentcompanystatementofchangesinequityfortheyearendedDecember31,2024(ExpressedinRenminbiYuan)
| Items | Currentperiodcumulative | ||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserve | Less:Treasuryshares | Othercomprehensiveincome | Specialreserve | Surplusreserve | Undistributedprofit | Totalequity | |||
| Preferredshares | Perpetualbonds | Others | |||||||||
| I.Balanceattheendofprioryear | 1,010,579,797.00 | 3,840,152,133.25 | 42,238,481.15 | 198,282,150.00 | 513,682,139.22 | 5,520,457,738.32 | |||||
| Add:Cumulativechangesofaccountingpolicies | |||||||||||
| Errorcorrectionofpriorperiod | |||||||||||
| Others | |||||||||||
| II.Balanceatthebeginningofcurrentyear | 1,010,579,797.00 | 3,840,152,133.25 | 42,238,481.15 | 198,282,150.00 | 513,682,139.22 | 5,520,457,738.32 | |||||
| III.Currentperiodincrease(orless:decrease) | 201,852,891.00 | 221,566,198.54 | -191,640,200.78 | -38,473,945.57 | 127,737,417.19 | 341,232,695.00 | 739,222,946.52 | ||||
| (I)Totalcomprehensiveincome | 1,277,374,171.94 | 1,277,374,171.94 | |||||||||
| (II)Capitalcontributedorwithdrawnbyowners | -263,068.00 | 221,566,198.54 | 10,475,758.22 | -38,473,945.57 | 270,252,834.33 | ||||||
| 1.Ordinarysharescontributedbyowners | 221,582,841.00 | 221,582,841.00 | |||||||||
| 2.Capitalcontributedbyholdersofotherequityinstruments | |||||||||||
| 3.Amountofshare-basedpaymentincludedinequity | 14,075,129.20 | 14,075,129.20 | |||||||||
| 4.Others | -263,068.00 | -16,642.46 | -3,599,370.98 | -38,473,945.57 | 34,594,864.13 | ||||||
| (III)Profitdistribution | 127,737,417.19 | -936,141,476.94 | -808,404,059.75 | ||||||||
| 1.Appropriationofsurplusreserve | 127,737,417.19 | -127,737,417.19 | |||||||||
| 2.Appropriationofprofittoowners | -808,404,059.75 | -808,404,059.75 | |||||||||
| 3.Others | |||||||||||
| (IV)Internalcarry-overwithinequity | 202,115,959.00 | -202,115,959.00 | |||||||||
| 1.Transferofcapitalreservetocapital | 202,115,959.00 | -202,115,959.00 | |||||||||
| 2.Transferofsurplusreservetocapital | |||||||||||
| 3.Surplusreservetocoverlosses | |||||||||||
| 4.Changesindefinedbenefitplancarriedovertoretainedearnings | |||||||||||
| 5.Othercomprehensiveincomecarriedovertoretainedearnings | |||||||||||
| 6.Others | |||||||||||
| (V)Specialreserve | |||||||||||
| 1.Currentperiodappropriation | |||||||||||
| 2.Currentperioduse | |||||||||||
| (VI)Others | |||||||||||
| IV.Balanceattheendofcurrentperiod | 1,212,432,688.00 | 221,566,198.54 | 3,648,511,932.47 | 3,764,535.58 | 326,019,567.19 | 854,914,834.22 | 6,259,680,684.84 | ||||
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
/
YifengPharmacyChainCo.,Ltd.ParentcompanystatementofchangesinequityfortheyearendedDecember31,2024(continued)
(ExpressedinRenminbiYuan)
| Items | Precedingperiodcomparative | ||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserve | Less:Treasuryshares | Othercomprehensiveincome | Specialreserve | Surplusreserve | Undistributedprofit | Totalequity | |||
| Preferredshares | Perpetualbonds | Others | |||||||||
| I.Balanceattheendofprioryear | 721,704,930.00 | 4,083,988,504.95 | 77,410,952.00 | 132,066,047.02 | 206,419,184.39 | 5,066,767,714.36 | |||||
| Add:Cumulativechangesofaccountingpolicies | |||||||||||
| Errorcorrectionofpriorperiod | |||||||||||
| Others | |||||||||||
| II.Balanceatthebeginningofcurrentyear | 721,704,930.00 | 4,083,988,504.95 | 77,410,952.00 | 132,066,047.02 | 206,419,184.39 | 5,066,767,714.36 | |||||
| III.Currentperiodincrease(orless:decrease) | 288,874,867.00 | -243,836,371.70 | -35,172,470.85 | 66,216,102.98 | 307,262,954.83 | 453,690,023.96 | |||||
| (I)Totalcomprehensiveincome | 662,161,029.81 | 662,161,029.81 | |||||||||
| (II)Capitalcontributedorwithdrawnbyowners | 192,895.00 | 44,845,600.30 | -35,172,470.85 | 80,210,966.15 | |||||||
| 1.Ordinarysharescontributedbyowners | 390,015.00 | 7,000,776.00 | 7,390,791.00 | ||||||||
| 2.Capitalcontributedbyholdersofotherequityinstruments | |||||||||||
| 3.Amountofshare-basedpaymentincludedinequity | 41,169,112.30 | 41,169,112.30 | |||||||||
| 4.Others | -197,120.00 | -3,324,288.00 | -42,563,261.85 | 39,041,853.85 | |||||||
| (III)Profitdistribution | 66,216,102.98 | -354,898,074.98 | -288,681,972.00 | ||||||||
| 1.Appropriationofsurplusreserve | 66,216,102.98 | -66,216,102.98 | |||||||||
| 2.Appropriationofprofittoowners | -288,681,972.00 | -288,681,972.00 | |||||||||
| 3.Others | |||||||||||
| (IV)Internalcarry-overwithinequity | 288,681,972.00 | -288,681,972.00 | |||||||||
| 1.Transferofcapitalreservetocapital | 288,681,972.00 | -288,681,972.00 | |||||||||
| 2.Transferofsurplusreservetocapital | |||||||||||
| 3.Surplusreservetocoverlosses | |||||||||||
| 4.Changesindefinedbenefitplancarriedovertoretainedearnings | |||||||||||
| 5.Othercomprehensiveincomecarriedovertoretainedearnings | |||||||||||
| 6.Others | |||||||||||
| (V)Specialreserve | |||||||||||
| 1.Currentperiodappropriation | |||||||||||
| 2.Currentperioduse | |||||||||||
| (VI)Others | |||||||||||
| IV.Balanceattheendofcurrentperiod | 1,010,579,797.00 | 3,840,152,133.25 | 42,238,481.15 | 198,282,150.00 | 513,682,139.22 | 5,520,457,738.32 | |||||
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment
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IIIBasicinformationoftheCompany
1.Companyprofile?Applicable?NotApplicableYifengPharmacyChainCo.,Ltd.(the“Company”)wastransformedfromtheformerHunanYifengPharmacyPharmaceuticalChainCo.,Ltd.,whichwasjointlyinvestedandestablishedbyHunanYifengPharmaceuticalInvestmentManagementCo.,Ltd.andZhuRong.HunanYifengPharmacyPharmaceuticalChainCo.,Ltd.wasregisteredatChangdeAdministrationforIndustryandCommerceonJune20,2008andheadquarteredinChangshaCity,HunanProvince.TheCompanycurrentlyholdsabusinesslicensewithunifiedsocialcreditcodeof9143070067558223X2,withregisteredcapitalof1,212,432,688.00yuan,totalshareof1,212,432,688shares(eachwithparvalueofoneyuan),ofwhich,239,042sharesarerestrictedoutstandingAshares,and1,212,193,646sharesareunrestrictedoutstandingAshares.TheCompany’sshareswerelistedontheShanghaiStockExchangeonFebruary17,2015.TheCompanybelongstopharmaceuticalretailindustryandismainlyengagedinchainretailbusinessofdrugs,healthproducts,medicalequipment,health-relatedconvenienceitems,etc.Thefinancialstatementswereapprovedandauthorizedforissuebythe16
thmeetingofthefourthsessionoftheBoardofDirectorsdatedApril28,2025.IV.Preparationbasisofthefinancialstatements
1.PreparationbasisThefinancialstatementshavebeenpreparedonthebasisofgoingconcern.
2.Assessmentoftheabilitytocontinueasagoingconcern?Applicable?NotApplicableTheCompanyhasnoeventsorconditionsthatmaycastsignificantdoubtsupontheCompany’sabilitytocontinueasagoingconcernwithinthe12monthsafterthebalancesheetdate.V.SignificantaccountingpoliciesandestimatesImportantnote:
?Applicable?NotApplicableTheCompanyhassetupaccountingpoliciesandestimatesontransactionsoreventssuchasimpairmentoffinancialinstruments,inventories,depreciationoffixedassets,constructioninprogress,intangibleassets,revenuerecognition,etc.,basedontheCompany’sactualproductionandoperationfeatures.
1.StatementofcomplianceThefinancialstatementshavebeenpreparedinaccordancewiththerequirementsofChinaAccountingStandardsforBusinessEnterprises(CASBEs),andpresenttrulyandcompletelythefinancialposition,financialperformanceandcashflowsoftheCompany.
2.Accountingperiod
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TheaccountingyearoftheCompanyrunsfromJanuary1toDecember31undertheGregoriancalendar.
3.Operatingcycle?Applicable?NotApplicableTheCompanyhasarelativelyshortoperatingcycleforitsbusiness,anassetoraliabilityisclassifiedascurrentifitisexpectedtoberealizedorduewithin12months.
4.FunctionalcurrencyTheCompany’sfunctionalcurrencyisRenminbi(RMB)Yuan.
5.Determinationmethodandbasisforselectionofmateriality?Applicable?NotApplicableTheCompanypreparesanddisclosesfinancialstatementsincompliancewiththeprincipleofmateriality.Theitemsdisclosedinnotestothefinancialstatementsinvolvingmaterialityjudgements,determinationmethodandbasisforselectionofmaterialityareasfollows:
| Discloseditemsinvolvingmaterialityjudgements | Determinationmethodandbasisforselectionofmateriality |
| Significantadvancespaidwithageoveroneyear | Withindividualbalanceexceeding0.3%oftotalassets |
| Significantotherreceivableswithprovisionmadeonanindividualbasis | Withindividualbalanceexceeding0.3%oftotalassets |
| Significantdebtinvestments | Withindividualbalanceexceeding0.3%oftotalassets |
| Significantconstructioninprogress | Withindividualbalanceexceeding0.3%oftotalassets |
| Significantaccountspayablewithageoveroneyear | Withindividualbalanceexceeding0.3%oftotalassets |
| Significantotherpayableswithageoveroneyear | Withindividualbalanceexceeding0.3%oftotalassets |
| Significantadvancesreceivedwithageoveroneyearoroverdue | Withindividualbalanceexceeding0.3%oftotalassets |
| Significantcontractliabilitieswithageoveroneyear | Withindividualbalanceexceeding0.3%oftotalassets |
| Significantcashflowsfrominvestingactivities | Withindividualbalanceexceeding5%oftotalassets |
| SignificantcapitalizedR&Dprojects | Withindividualbalanceexceeding0.3%oftotalassets |
| Significantsubsidiaries,notwholly-ownedsubsidiaries | Withtotalassets/totalrevenue/profitbeforetaxexceeding15%ofthegroup’stotalassets/totalrevenue/profitbeforetax |
| Significantjointventuresandassociates | Withcarryingamountofindividuallong-terminvestmentexceeding15%ofthegroup’snetassets/Withindividualinvestmentincomeunderequitymethodexceeding15%ofthegroup’sprofitbeforetax |
| Significantcommitments | Withindividualbalanceexceeding0.3%oftotalassets |
| Significantnon-adjustingevents | Withindividualbalanceexceeding0.3%oftotalassets |
6.Accountingtreatmentsofbusinesscombinationunderandnotundercommoncontrol?Applicable?NotApplicable
1.Accountingtreatmentofbusinesscombinationundercommoncontrol
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Assetsandliabilitiesarisingfrombusinesscombinationaremeasuredatcarryingamountofthecombinedpartyincludedintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyatthecombinationdate.Differencebetweencarryingamountoftheequityofthecombinedpartyincludedintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyandthatofthecombinationconsiderationortotalparvalueofsharesissuedisadjustedtocapitalreserve,ifthebalanceofcapitalreserveisinsufficienttooffset,anyexcessisadjustedtoretainedearnings.
2.AccountingtreatmentofbusinesscombinationnotundercommoncontrolWhencombinationcostisinexcessofthefairvalueofidentifiablenetassetsobtainedfromtheacquireeattheacquisitiondate,theexcessisrecognizedasgoodwill;otherwise,thefairvalueofidentifiableassets,liabilitiesandcontingentliabilities,andthemeasurementofthecombinationcostarereviewed,thenthedifferenceisrecognizedinprofitorloss.
7.Judgementcriteriaforcontrolandcompilationmethodofconsolidatedfinancialstatements?Applicable?NotApplicable
1.JudgementofcontrolAninvestorcontrolsaninvesteeifandonlyiftheinvestorhasallthefollowing:(1)powerovertheinvestee;(2)exposure,orrights,tovariablereturnsfromitsinvolvementwiththeinvestee;and(3)theabilitytouseitspowerovertheinvesteetoaffecttheamountoftheinvestor’sreturns.
2.Compilationmethodofconsolidatedfinancialstatements
(1)Theparentcompanybringsallitscontrolledsubsidiariesintotheconsolidationscope.Theconsolidatedfinancialstatementsarecompiledbytheparentcompanyaccordingto“CASBE33–ConsolidatedFinancialStatements”,basedonrelevantinformationandthefinancialstatementsoftheparentcompanyanditssubsidiaries.
8.Classificationofjointarrangementsandaccountingtreatmentofjointoperations?Applicable?NotApplicable
1.Jointarrangementsincludejointoperationsandjointventures.
2.WhentheCompanyisajointoperatorofajointoperation,itrecognizesthefollowingitemsinrelationtoitsinterestinajointoperation:
(1)itsassets,includingitsshareofanyassetsheldjointly;
(2)itsliabilities,includingitsshareofanyliabilitiesincurredjointly;
(3)itsrevenuefromthesaleofitsshareoftheoutputarisingfromthejointoperation;
(4)itsshareoftherevenuefromthesaleoftheassetsbythejointoperation;and
(5)itsexpenses,includingitsshareofanyexpensesincurredjointly.
9.RecognitioncriteriaofcashandcashequivalentsCashaspresentedincashflowstatementreferstocashonhandanddepositondemandforpayment.Cashequivalentsrefertoshort-term,highlyliquidinvestmentsthatcanbereadilyconvertedtocashand
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thataresubjecttoaninsignificantriskofchangesinvalue.
10.Foreigncurrencytranslation?Applicable?NotApplicableTransactionsdenominatedinforeigncurrencyaretranslatedintoRMByuanatthespotexchangerateatthetransactiondateatinitialrecognition.Atthebalancesheetdate,monetaryitemsdenominatedinforeigncurrencyaretranslatedatthespotexchangerateatthebalancesheetdatewithdifference,exceptforthosearisingfromtheprincipalandinterestofexclusiveborrowingseligibleforcapitalization,includedinprofitorloss;non-cashitemscarriedathistoricalcostsaretranslatedatthespotexchangerateatthetransactiondate,withtheRMBamountsunchanged;non-cashitemscarriedatfairvalueinforeigncurrencyaretranslatedatthespotexchangerateatthedatewhenthefairvaluewasdetermined,withdifferenceincludedinprofitorlossorothercomprehensiveincome.
2.TranslationoffinancialstatementsmeasuredinforeigncurrencyTheassetsandliabilitiesinthebalancesheetaretranslatedintoRMBatthespotexchangerateatthebalancesheetdate;theequityitems,otherthanundistributedprofit,aretranslatedatthespotexchangerateatthetransactiondate;therevenuesandexpensesintheincomestatementaretranslatedintoRMBatthespotexchangerateatthetransactiondate.Thedifferencearisingfromtheaforementionedforeigncurrencytranslationisincludedinothercomprehensiveincome.
11.Financialinstruments?Applicable?NotApplicable
1.ClassificationoffinancialassetsandfinancialliabilitiesFinancialassetsareclassifiedintothefollowingthreecategorieswheninitiallyrecognized:(1)financialassetsatamortizedcost;(2)financialassetsatfairvaluethroughothercomprehensiveincome;(3)financialassetsatfairvaluethroughprofitorloss.Financialliabilitiesareclassifiedintothefollowingfourcategorieswheninitiallyrecognized:(1)financialliabilitiesatfairvaluethroughprofitorloss;(2)financialliabilitiesthatarisewhenatransferofafinancialassetdoesnotqualifyforderecognitionorwhenthecontinuinginvolvementapproachapplies;
(3)financialguaranteecontractsnotfallwithintheabovecategories(1)and(2),andcommitmentstoprovidealoanatabelow-marketinterestrate,whichdonotfallwithintheabovecategory(1);(4)financialliabilitiesatamortizedcost.
2.Recognitioncriteria,measurementmethodandderecognitionconditionoffinancialassetsandfinancialliabilities
(1)RecognitioncriteriaandmeasurementmethodoffinancialassetsandfinancialliabilitiesWhentheCompanybecomesapartytoafinancialinstrument,itisrecognizedasafinancialassetorfinancialliability.ThefinancialassetsandfinancialliabilitiesinitiallyrecognizedbytheCompanyaremeasuredatfairvalue;forthefinancialassetsandliabilitiesatfairvaluethroughprofitorloss,thetransactionexpensesthereofaredirectlyincludedinprofitorloss;forothercategoriesoffinancialassets
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andfinancialliabilities,thetransactionexpensesthereofareincludedintotheinitiallyrecognizedamount.However,atinitialrecognition,foraccountsreceivablethatdonotcontainasignificantfinancingcomponentorincircumstanceswheretheCompanydoesnotconsiderthefinancingcomponentsincontractswithinoneyear,theyaremeasuredatthetransactionpriceinaccordancewith“CASBE14–Revenues”.
(2)Subsequentmeasurementoffinancialassets
1)FinancialassetsmeasuredatamortizedcostTheCompanymeasuresitsfinancialassetsattheamortizedcostsusingeffectiveinterestmethod.Gainsorlossesonfinancialassetsthataremeasuredatamortizedcostandarenotpartofhedgingrelationshipsshallbeincludedintoprofitorlosswhenthefinancialassetsarederecognized,reclassified,amortizedusingeffectiveinterestmethodorrecognizedwithimpairmentloss.
2)DebtinstrumentinvestmentsatfairvaluethroughothercomprehensiveincomeTheCompanymeasuresitsdebtinstrumentinvestmentsatfairvalue.Interests,impairmentgainsorlosses,andgainsandlossesonforeignexchangethatcalculatedusingeffectiveinterestmethodshallbeincludedintoprofitorloss,whileothergainsorlossesareincludedintoothercomprehensiveincome.Accumulatedgainsorlossesthatinitiallyrecognizedasothercomprehensiveincomeshouldbetransferredoutintoprofitorlosswhenthefinancialassetsarederecognized.
3)EquityinstrumentinvestmentsatfairvaluethroughothercomprehensiveincomeTheCompanymeasuresitsequityinstrumentinvestmentsatfairvalue.Dividendsobtained(otherthanthoseaspartofinvestmentcostrecovery)shallbeincludedintoprofitorloss,whileothergainsorlossesareincludedintoothercomprehensiveincome.Accumulatedgainsorlossesthatinitiallyrecognizedasothercomprehensiveincomeshouldbetransferredoutintoretainedearningswhenthefinancialassetsarederecognized.
4)FinancialassetsatfairvaluethroughprofitorlossTheCompanymeasuresitsfinancialassetsatfairvalue.Gainsorlossesarisingfromchangesinfairvalue(includinginterestsanddividends)shallbeincludedintoprofitorloss,exceptforfinancialassetsthatarepartofhedgingrelationships.
(3)Subsequentmeasurementoffinancialliabilities
1)FinancialliabilitiesatfairvaluethroughprofitorlossFinancialliabilitiesatfairvaluethroughprofitorlossincludeheld-for-tradingfinancialliabilities(includingderivativesthatareliabilities)andfinancialliabilitiesdesignatedasatfairvaluethroughprofitorloss.TheCompanymeasuressuchkindofliabilitiesatfairvalue.TheamountofchangesinthefairvalueofthefinancialliabilitiesthatareattributabletochangesintheCompany’sowncreditriskshallbeincludedintoothercomprehensiveincome,unlesssuchtreatmentwouldcreateorenlargeaccountingmismatchesinprofitorloss.Othergainsorlossesonthosefinancialliabilities(includinginterests,changesinfairvaluethatareattributabletoreasonsotherthanchangesintheCompany’sown
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creditrisk)shallbeincludedintoprofitorloss,exceptforfinancialliabilitiesthatarepartofhedgingrelationships.Accumulatedgainsorlossesthatoriginallyrecognizedasothercomprehensiveincomeshouldbetransferredoutintoretainedearningswhenthefinancialliabilitiesarederecognized.
2)FinancialliabilitiesthatarisewhenatransferofafinancialassetdoesnotqualifyforderecognitionorwhenthecontinuinginvolvementapproachappliesTheCompanymeasuresitsfinancialliabilitiesinaccordancewith“CASBE23–TransferofFinancialAssets”.
3)Financialguaranteecontractsnotfallwithintheabovecategories1)and2),andcommitmentstoprovidealoanatabelow-marketinterestrate,whichdonotfallwithintheabovecategory1)TheCompanymeasuresitsfinancialliabilitiesatthehigherof:a.theamountoflossallowancesinaccordancewithimpairmentrequirementsoffinancialinstruments;b.theamountinitiallyrecognizedlesstheamountofaccumulatedamortizationrecognizedinaccordancewith“CASBE14–Revenues”.
4)FinancialliabilitiesatamortizedcostTheCompanymeasuresitsfinancialliabilitiesatamortizedcostusingeffectiveinterestmethod.Gainsorlossesonfinancialliabilitiesthataremeasuredatamortizedcostandarenotpartofhedgingrelationshipsshallbeincludedintoprofitorlosswhenthefinancialliabilitiesarederecognizedandamortizedusingeffectiveinterestmethod.
(4)Derecognitionoffinancialassetsandfinancialliabilities
1)Financialassetsarederecognizedwhen:
a.thecontractualrightstothecashflowsfromthefinancialassetsexpire;orb.thefinancialassetshavebeentransferredandthetransferqualifiesforderecognitioninaccordancewith“CASBE23–TransferofFinancialAssets”.
2)Onlywhentheunderlyingpresentobligationsofafinancialliabilityarerelievedtotallyorpartlymaythefinancialliabilitybederecognizedaccordingly.
3.RecognitioncriteriaandmeasurementmethodoffinancialassetstransferWheretheCompanyhastransferredsubstantiallyalloftherisksandrewardsrelatedtotheownershipofthefinancialasset,itderecognizesthefinancialasset,andanyrightorliabilityarisingfromsuchtransferisrecognizedindependentlyasanassetoraliability.Ifitretainedsubstantiallyalloftherisksandrewardsrelatedtotheownershipofthefinancialasset,itcontinuesrecognizingthefinancialasset.WheretheCompanydoesnottransferorretainsubstantiallyalloftherisksandrewardsrelatedtotheownershipofafinancialasset,itisdealtwithaccordingtothecircumstancesasfollowsrespectively:(1)iftheCompanydoesnotretainitscontroloverthefinancialasset,itderecognizesthefinancialasset,andanyrightorliabilityarisingfromsuchtransferisrecognizedindependentlyasanassetoraliability;(2)iftheCompanyretainsitscontroloverthefinancialasset,accordingtotheextentofitscontinuinginvolvementinthetransferredfinancialasset,itrecognizestherelatedfinancialassetandrecognizesthe
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relevantliabilityaccordingly.Ifthetransferofanentirefinancialassetsatisfiestheconditionsforderecognition,thedifferencebetweentheamountsofthefollowingtwoitemsisincludedinprofitorloss:(1)thecarryingamountofthetransferredfinancialassetasofthedateofderecognition;(2)thesumofconsiderationreceivedfromthetransferofthefinancialasset,andtheaccumulativeamountofthechangesofthefairvalueoriginallyincludedinothercomprehensiveincomeproportionatetothetransferredfinancialasset(financialassetstransferredrefertodebtinstrumentinvestmentsatfairvaluethroughothercomprehensiveincome).Ifthetransferoffinancialassetpartiallysatisfiestheconditionstoderecognition,theentirecarryingamountofthetransferredfinancialassetis,betweentheportionwhichisderecognizedandtheportionwhichisnot,apportionedaccordingtotheirrespectiverelativefairvalue,andthedifferencebetweentheamountsofthefollowingtwoitemsisincludedintoprofitorloss:(1)thecarryingamountoftheportionwhichisderecognized;(2)thesumofconsiderationoftheportionwhichisderecognized,andtheportionoftheaccumulativeamountofthechangesinthefairvalueoriginallyincludedinothercomprehensiveincomewhichiscorrespondingtotheportionwhichisderecognized(financialassetstransferredrefertodebtinstrumentinvestmentsatfairvaluethroughothercomprehensiveincome).
4.FairvaluedeterminationmethodoffinancialassetsandliabilitiesTheCompanyusesvaluationtechniquesthatareappropriateinthecircumstancesandforwhichsufficientdataandinformationareavailabletomeasurefairvalue.Theinputstovaluationtechniquesusedtomeasurefairvaluearearrangedinthefollowinghierarchyandusedaccordingly:
(1)Level1inputsareunadjustedquotedpricesinactivemarketsforidenticalassetsorliabilitiesthattheCompanycanaccessatthemeasurementdate;
(2)Level2inputsareinputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,eitherdirectlyorindirectly.Level2inputsinclude:quotedpricesforsimilarassetsorliabilitiesinactivemarkets;quotedpricesforidenticalorsimilarassetsorliabilitiesinmarketsthatarenotactive;inputsotherthanquotedpricesthatareobservablefortheassetorliability,forexample,interestratesandyieldcurvesobservableatcommonlyquotedintervals;market-corroboratedinputs;
(3)Level3inputsareunobservableinputsfortheassetorliability.Level3inputsincludeinterestratethatisnotobservableandcannotbecorroboratedbyobservablemarketdataatcommonlyquotedintervals,historicalvolatility,futurecashflowstobepaidtofulfillthedisposalobligationassumedinbusinesscombination,financialforecastdevelopedusingtheCompany’sowndata,etc.
5.ImpairmentoffinancialinstrumentsTheCompany,onthebasisofexpectedcreditloss,recognizeslossallowancesoffinancialassetsatamortizedcost,debtinstrumentinvestmentsatfairvaluethroughothercomprehensiveincome,contractassets,leasesreceivable,loancommitmentsotherthanfinancialliabilitiesatfairvaluethroughprofitorloss,financialguaranteecontractsnotbelongtofinancialliabilitiesatfairvaluethroughprofitorlossorfinancialliabilitiesthatarisewhenatransferofafinancialassetdoesnotqualifyforderecognitionor
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whenthecontinuinginvolvementapproachapplies.Expectedcreditlossesrefertotheweightedaverageofcreditlosseswiththerespectiverisksofadefaultoccurringastheweights.CreditlossreferstothedifferencebetweenallcontractualcashflowsthatareduetotheCompanyinaccordancewiththecontractandallthecashflowsthattheCompanyexpectstoreceive(i.e.allcashshortfalls),discountedattheoriginaleffectiveinterestrate.Amongwhich,purchasedororiginatedcredit-impairedfinancialassetsarediscountedatthecredit-adjustedeffectiveinterestrate.Atthebalancesheetdate,theCompanyshallonlyrecognizethecumulativechangesinthelifetimeexpectedcreditlossessinceinitialrecognitionasalossallowanceforpurchasedororiginatedcredit-impairedfinancialassets.Forleasesreceivable,andaccountsreceivableandcontractassetsresultingfromtransactionsregulatedin“CASBE14–Revenues”,theCompanychoosessimplifiedapproachtomeasurethelossallowanceatanamountequaltolifetimeexpectedcreditlosses.Foraccountsreceivableandcontractassetsresultingfromtransactionsregulatedin“CASBE14–Revenues”,theCompanychoosessimplifiedapproachtomeasurethelossallowanceatanamountequaltolifetimeexpectedcreditlosses.Forfinancialassetsotherthantheabove,oneachbalancesheetdate,theCompanyshallassesswhetherthecreditriskonthefinancialinstrumenthasincreasedsignificantlysinceinitialrecognition.TheCompanyshallmeasurethelossallowanceforthefinancialinstrumentatanamountequaltothelifetimeexpectedcreditlossesifthecreditriskonthatfinancialinstrumenthasincreasedsignificantlysinceinitialrecognition;otherwise,theCompanyshallmeasurethelossallowanceforthatfinancialinstrumentatanamountequalto12-monthexpectedcreditloss.Consideringreasonableandsupportableforward-lookinginformation,theCompanycomparestheriskofadefaultoccurringonthefinancialinstrumentasatthebalancesheetdatewiththeriskofadefaultoccurringonthefinancialinstrumentasatthedateofinitialrecognition,soastoassesswhetherthecreditriskonthefinancialinstrumenthasincreasedsignificantlysinceinitialrecognition.TheCompanymayassumethatthecreditriskonafinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognitionifthefinancialinstrumentisdeterminedtohaverelativelylowcreditriskatthebalancesheetdate.TheCompanyshallestimateexpectedcreditriskandmeasureexpectedcreditlossesonanindividualoracollectivebasis.WhentheCompanyadoptsthecollectivebasis,financialinstrumentsaregroupedwithsimilarcreditriskfeatures.TheCompanyshallremeasureexpectedcreditlossoneachbalancesheetdate,andincreasedorreversedamountsoflossallowancearisingtherefromshallbeincludedintoprofitorlossasimpairmentlossesorgains.Forafinancialassetmeasuredatamortizedcost,thelossallowancereducesthecarryingamount
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ofsuchfinancialassetpresentedinthebalancesheet;foradebtinvestmentmeasuredatfairvaluethroughothercomprehensiveincome,thelossallowanceshallberecognizedinothercomprehensiveincomeandshallnotreducethecarryingamountofsuchfinancialasset.
6.OffsettingfinancialassetsandfinancialliabilitiesFinancialassetsandfinancialliabilitiesarepresentedseparatelyinthebalancesheetandarenotoffset.However,theCompanyoffsetsafinancialassetandafinancialliabilityandpresentsthenetamountinthebalancesheetwhen,andonlywhen,theCompany:(1)currentlyhasalegallyenforceablerighttosetofftherecognizedamounts;and(2)intendseithertosettleonanetbasis,ortorealizetheassetandsettletheliabilitysimultaneously.Foratransferofafinancialassetthatdoesnotqualifyforderecognition,theCompanydoesnotoffsetthetransferredassetandtheassociatedliability.
12.Notesreceivable?Applicable?NotApplicableRecognitionmethodandaccountingtreatmentmethodforexpectedcreditlossesofnotesreceivable?Applicable?NotApplicable
| Items | Basisfordeterminationofportfolio | Methodformeasuringexpectedcreditloss |
| Bankacceptancereceivable | Typeofnotes | Basedonhistoricalcreditlossexperience,thecurrentsituationandtheforecastoffutureeconomicconditions,theCompanycalculatesexpectedcreditlossthroughexposureatdefaultandlifetimeexpectedcreditlossrate. |
| Tradeacceptancereceivable | ||
| Accountsreceivable–Portfoliogroupedwithmedicalinsurancepayments | Medicalinsurancepaymentswithagewithin12months | |
| Accountsreceivable–Portfoliogroupedwithbalancesduefromrelatedpartieswithintheconsolidationscope | Relatedpartiesbroughtintotheconsolidationscope | |
| Accountsreceivable–Portfoliogroupedwithages | Ages | Basedonhistoricalcreditlossexperience,thecurrentsituationandtheforecastoffutureeconomicconditions,theCompanypreparesthecomparisontableofagesandlifetimeexpectedcreditlossrateofaccountsreceivable,soastocalculateexpectedcreditloss. |
| Otherreceivables–Portfoliogroupedwithsecuritydepositsreceivable | Securitydepositsforoperatingandprettycashexcludingstorepettycash | Basedonhistoricalcreditlossexperience,thecurrentsituationandtheforecastoffutureeconomicconditions,theCompanycalculates |
Otherreceivables–Portfoliogroupedwithmedicalinsurancepayments
| Otherreceivables–Portfoliogroupedwithmedicalinsurancepayments | Medicalinsurancereserveswithagewithin12months |
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| Items | Basisfordeterminationofportfolio | Methodformeasuringexpectedcreditloss |
| Otherreceivables–Portfoliogroupedwithstorepettycashreceivable | Storepettycash | expectedcreditlossthroughexposureatdefaultandlifetimeexpectedcreditlossrate. |
| Otherreceivables–Portfoliogroupedwithbalancesduefromrelatedpartieswithintheconsolidationscope | Relatedpartiesbroughtintotheconsolidationscope | |
| Otherreceivables–Portfoliogroupedwithages | Otherreceivablesexcludingprettycash,securitydeposits,medicalinsurancereserves,andbalancesduefromrelatedpartieswithintheconsolidationscope | Basedonhistoricalcreditlossexperience,thecurrentsituationandtheforecastoffutureeconomicconditions,theCompanycalculatesexpectedcreditlossthroughexposureatdefaultand12-monthorlifetimeexpectedcreditlossrate. |
Calculationmethodofagingbasedonthecombinationofcreditriskcharacteristicsgroupedwithages?Applicable?NotApplicable
| Ages | Expectedcreditlossrateofaccountsreceivable(%) | Expectedcreditlossrateofotherreceivables(%) |
| Within1year(inclusive,thesamehereinafter) | 5.00 | 5.00 |
| 1-2years | 10.00 | 10.00 |
| 2-3years | 20.00 | 20.00 |
| 3-4years | 30.00 | 30.00 |
| 4-5years | 50.00 | 50.00 |
| Over5years | 100.00 | 100.00 |
Recognitioncriteriawithexpectedcreditlossesmeasuredonanindividualbasis?Applicable?NotApplicableForreceivablesandcontractassetswhosecreditriskissignificantlydifferentfromthatofportfolios,theCompanyaccruesexpectedcreditlossesonanindividualbasis.
13.Accountsreceivable?Applicable?NotApplicableCategoriesandrecognitionmethodbasedonthecreditriskcharacteristics?Applicable?NotApplicablePleaserefertoNoteX,12“Notesreceivable”.Calculationmethodofagingbasedonthecombinationofcreditriskcharacteristicsgroupedwithages?Applicable?NotApplicablePleaserefertoNoteX,12“Notesreceivable”.
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Recognitioncriteriawithexpectedcreditlossesmeasuredonanindividualbasis?Applicable?NotApplicablePleaserefertoNoteX,12“Notesreceivable”.
14.Receivablesfinancing?Applicable?NotApplicableCategoriesandrecognitionmethodbasedonthecreditriskcharacteristics?Applicable?NotApplicablePleaserefertoNoteX,12“Notesreceivable”.Calculationmethodofagingbasedonthecombinationofcreditriskcharacteristicsgroupedwithages?Applicable?NotApplicablePleaserefertoNoteX,12“Notesreceivable”.Recognitioncriteriawithexpectedcreditlossesmeasuredonanindividualbasis?Applicable?NotApplicablePleaserefertoNoteX,12“Notesreceivable”.
15.Otherreceivables?Applicable?NotApplicableCategoriesandrecognitionmethodbasedonthecreditriskcharacteristics?Applicable?NotApplicablePleaserefertoNoteX,12“Notesreceivable”.Calculationmethodofagingbasedonthecombinationofcreditriskcharacteristicsgroupedwithages?Applicable?NotApplicablePleaserefertoNoteX,12“Notesreceivable”.Recognitioncriteriawithexpectedcreditlossesmeasuredonanindividualbasis?Applicable?NotApplicablePleaserefertoNoteX,12“Notesreceivable”.
16.Inventories?Applicable?NotApplicableClassificationofinventories,accountingmethodfordispatchinginventories,inventorysystem,andamortizationmethodoflow-valueconsumablesandpackages?Applicable?NotApplicable
1.ClassificationofinventoriesInventoriesincludefinishedgoodsorgoodsheldforsaleintheordinarycourseofbusiness,workinprocessintheprocessofproduction,materials,suppliesetc.tobeconsumedintheproductionprocessor
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intherenderingofservices.
2.Accountingmethodfordispatchinginventories:
Inventoriesdispatchedfromstorageareaccountedforwithmovingweightedaveragemethod.
3.InventorysystemPerpetualinventorymethodisadopted.
4.Amortizationmethodoflow-valueconsumablesandpackagesLow-valueconsumablesareamortizedwithone-offmethod.Basisfordetermininginventorydepreciationreserves?Applicable?NotApplicableAtthebalancesheetdate,inventoriesaremeasuredatthelowerofcostandnetrealizablevalue;provisionsforinventorywrite-downaremadeontheexcessofitscostoverthenetrealizablevalue.Thenetrealizablevalueofinventoriesheldforsaleisdeterminedbasedontheamountoftheestimatedsellingpricelesstheestimatedsellingexpensesandrelevanttaxesandsurchargesintheordinarycourseofbusiness;thenetrealizablevalueofinventoriestobeprocessedisdeterminedbasedontheamountoftheestimatedsellingpricelesstheestimatedcostsofcompletion,sellingexpensesandrelevanttaxesandsurchargesintheordinarycourseofbusiness;atthebalancesheetdate,whenonlypartofthesameitemofinventorieshaveagreedprice,theirnetrealizablevaluearedeterminedseparatelyandarecomparedwiththeircoststosettheprovisionforinventorywrite-downtobemadeorreversed.Categoriesandbasisfordeterminationofportfolioswithprovisionforinventorywrite-downmadeonacollectivebasisanddeterminationbasisofnetrealizablevalue?Applicable?NotApplicableCalculationmethodanddeterminationbasisfornetrealizablevalueunderportfoliogroupedwithages?Applicable?NotApplicable
17.Contractassets?Applicable?NotApplicableRecognitionmethodandcriteriaforcontractassets?Applicable?NotApplicableTheCompanypresentscontractassetsorcontractliabilitiesinthebalancesheetbasedontherelationshipbetweenitsperformanceobligationsandcustomers’payments.Contractassetsandcontractliabilitiesunderthesamecontractshalloffseteachotherandbepresentedonanetbasis.TheCompanypresentsanunconditionalrighttoconsideration(i.e.,onlythepassageoftimeisrequiredbeforetheconsiderationisdue)asareceivable,andpresentsarighttoconsiderationinexchangeforgoodsthatithastransferredtoacustomer(whichisconditionalonsomethingotherthanthepassageoftime)asacontractasset.
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Categoriesandrecognitionmethodbasedonthecreditriskcharacteristics?Applicable?NotApplicableCalculationmethodofagingbasedonthecombinationofcreditriskcharacteristicsgroupedwithages?Applicable?NotApplicableRecognitioncriteriawithexpectedcreditlossesmeasuredonanindividualbasis?Applicable?NotApplicable
18.Non-currentassetsordisposalgroupsheldforsale?Applicable?NotApplicableRecognitioncriteriaandaccountingtreatmentofnon-currentassetsordisposalgroupsheldforsale?Applicable?NotApplicableRecognitioncriteriaandpresentationmethodofdiscontinuedoperations?Applicable?NotApplicable
19.Long-termequityinvestments?Applicable?NotApplicable
1.JudgmentofjointcontrolandsignificantinfluenceJointcontrolisthecontractuallyagreedsharingofcontrolofanarrangement,whichexistsonlywhendecisionsabouttherelevantactivitiesrequiretheunanimousconsentofthepartiessharingcontrol.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvesteebutisnotcontrolorjointcontrolofthesepolicies.
2.Determinationofinvestmentcost
(1)Forbusinesscombinationundercommoncontrol,iftheconsiderationofthecombiningpartyisthatitmakespaymentincash,transfersnon-cashassets,assumesitsliabilitiesorissuesequitysecurities,onthedateofcombination,itregardstheshareofthecarryingamountoftheequityofthecombinedpartyincludedintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyastheinitialcostoftheinvestment.Thedifferencebetweentheinitialcostofthelong-termequityinvestmentsandthecarryingamountofthecombinationconsiderationpaidortheparvalueofsharesissuedoffsetscapitalreserve;ifthebalanceofcapitalreserveisinsufficienttooffset,anyexcessisadjustedtoretainedearnings.Whenlong-termequityinvestmentsareobtainedthroughbusinesscombinationundercommoncontrolachievedinstages,theCompanydetermineswhetheritisa“bundledtransaction”.Ifitisa“bundledtransaction”,stagesasawholeareconsideredasonetransactioninaccountingtreatment.Ifitisnota“bundledtransaction”,onthedateofcombination,investmentcostisinitiallyrecognizedattheshareofthecarryingamountofnetassetsofthecombinedpartyincludedtheconsolidatedfinancialstatementsoftheultimatecontrollingparty.Thedifferencebetweentheinitialinvestmentcostoflong-termequityinvestmentsattheacquisitiondateandthecarryingamountofthepreviouslyheldlong-termequity
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investmentsplusthecarryingamountoftheconsiderationpaidforthenewlyacquiredequityisadjustedtocapitalreserve;ifthebalanceofcapitalreserveisinsufficienttooffset,anyexcessisadjustedtoretainedearnings.
(2)Forbusinesscombinationnotundercommoncontrol,investmentcostisinitiallyrecognizedattheacquisition-datefairvalueofconsiderationspaid.Whenlong-termequityinvestmentsareobtainedthroughbusinesscombinationnotundercommoncontrolachievedinstages,theCompanydeterminedwhethertheyarestand-alonefinancialstatementsorconsolidatedfinancialstatementsinaccountingtreatment:
1)Inthecaseofstand-alonefinancialstatements,investmentcostisinitiallyrecognizedatthecarryingamountofthepreviouslyheldlong-termequityinvestmentsplusthecarryingamountoftheconsiderationpaidforthenewlyacquiredequity.
2)Inthecaseofconsolidatedfinancialstatements,theCompanydetermineswhetheritisa“bundledtransaction”.Ifitisa“bundledtransaction”,stagesasawholeareconsideredasonetransactioninaccountingtreatment.Ifitisnota“bundledtransaction”,thecarryingamountoftheacquirer’spreviouslyheldequityinterestintheacquireeisremeasuredattheacquisition-datefairvalue,andthedifferencebetweenthefairvalueandthecarryingamountisrecognizedininvestmentincome;whentheacquirer’spreviouslyheldequityinterestintheacquireeinvolvesothercomprehensiveincomeunderequitymethod,therelatedothercomprehensiveincomeisreclassifiedasincomefortheacquisitionperiod,excludingothercomprehensiveincomearisingfromchangesinnetliabilitiesorassetsfromremeasurementofdefinedbenefitplanoftheacquiree.
(3)Long-termequityinvestmentsobtainedthroughwaysotherthanbusinesscombination:theinitialcostofalong-termequityinvestmentobtainedbymakingpaymentincashisthepurchasecostwhichisactuallypaid;thatobtainedonthebasisofissuingequitysecuritiesisthefairvalueoftheequitysecuritiesissued;thatobtainedthroughdebtrestructuringisdeterminedaccordingto“CASBE12–DebtRestructuring”;andthatobtainedthroughnon-cashassetsexchangeisdeterminedaccordingto“CASBE7–Non-cashAssetsExchange”.
3.SubsequentmeasurementandrecognitionmethodofprofitorlossForalong-termequityinvestmentwithcontrolrelationship,itisaccountedforwithcostmethod;foralong-termequityinvestmentwithjointcontrolorsignificantinfluencerelationship,itisaccountedforwithequitymethod.
4.DisposalofasubsidiaryinstagesresultingintheCompany’slossofcontrol
(1)Judgementprinciplesof“bundledtransaction”FordisposalofasubsidiaryinstagesresultingintheCompany’slossofcontrol,theCompanydetermineswhetheritisa“bundledtransaction”basedontheagreementtermsforeachstage,disposalconsiderationobtainedseparately,objectoftheequitysold,disposalmethod,disposaltimepoint,etc.Iftheterms,conditionsandeconomiceffectofeachtransactionmeetoneormoreofthefollowing
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conditions,thesetransactionsareusuallyconsideredasa“bundledtransaction”:
1)thesetransactionsareenteredintoatthesametimeorincontemplationofeachother;
2)thesetransactionsformasingletransactiondesignedtoachieveanoverallcommercialeffect;
3)theoccurrenceofonetransactionisdependentontheoccurrenceofatleastoneothertransaction;and
4)onetransactionconsideredonitsownisnoteconomicallyjustified,butitiseconomicallyjustifiedwhenconsideredtogetherwithothertransactions.
(2)Accountingtreatmentsofnon-bundledtransactions
1)Stand-alonefinancialstatementsThedifferencebetweenthecarryingamountofthedisposedequityandtheconsiderationobtainedthereofisrecognizedinprofitorloss.IfthedisposaldoesnotresultintheCompany’slossofsignificantinfluenceorjointcontrol,theremainedequityisaccountedforwithequitymethod;however,ifthedisposalresultsintheCompany’slossofcontrol,jointcontrol,orsignificantinfluence,theremainedequityisaccountedforaccordingto“CASBE22–FinancialInstruments:RecognitionandMeasurement”.
2)ConsolidatedfinancialstatementsBeforetheCompany’slossofcontrol,thedifferencebetweenthedisposalconsiderationandtheproportionateshareofnetassetsinthedisposedsubsidiaryfromacquisitiondateorcombinationdatetothedisposaldateisadjustedtocapitalreserve(capitalpremium),ifthebalanceofcapitalreserveisinsufficienttooffset,anyexcessisadjustedtoretainedearnings.WhentheCompanylosescontrol,theremainedequityisremeasuredattheloss-of-control-datefairvalue.Theaggregatedvalueofdisposalconsiderationandthefairvalueoftheremainedequity,lesstheshareofnetassetsinthedisposedsubsidiaryheldbeforethedisposalfromtheacquisitiondateorcombinationdatetothedisposaldateisrecognizedininvestmentincomeintheperiodwhentheCompanylosescontroloversuchsubsidiary,andmeanwhilegoodwillisoffsetcorrespondingly.OthercomprehensiveincomerelatedtoequityinvestmentsinformersubsidiaryisreclassifiedasinvestmentincomeupontheCompany’slossofcontrol.
(3)Accountingtreatmentofbundledtransaction
1)Stand-alonefinancialstatementsStagesasawholeareconsideredasonetransactionresultinginlossofcontrolinaccountingtreatment.However,beforetheCompanylosescontroloverasubsidiary,thedifferencebetweenthedisposalconsiderationateachstageandthecarryingamountoflong-termequityinvestmentscorrespondingtothedisposedinvestmentsisrecognizedasothercomprehensiveincomeatthestand-alonefinancialstatementsandreclassifiedasprofitorlossintheperiodwhentheCompanylosescontroloversuchsubsidiary.
2)Consolidatedfinancialstatements
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Stagesasawholeareconsideredasonetransactionresultinginlossofcontrolinaccountingtreatment.However,beforetheCompanylosescontroloverasubsidiary,thedifferencebetweenthedisposalconsiderationateachstageandtheproportionateshareofnetassetsinthedisposedsubsidiaryisrecognizedasothercomprehensiveincomeattheconsolidatedfinancialstatementsandreclassifiedasprofitorlossintheperiodwhentheCompanylosescontroloversuchsubsidiary.
20.Investmentproperty?Applicable?NotApplicable
21.Fixedassets
1.Recognitionprinciplesoffixedassets?Applicable?NotApplicableFixedassetsaretangibleassetsheldforuseintheproductionofgoodsorrenderingofservices,forrentaltoothers,orforadministrativepurposes,andexpectedtobeusedduringmorethanoneaccountingyear.Fixedassetsarerecognizedif,andonlyif,itisprobablethatfutureeconomicbenefitsassociatedwiththeassetswillflowtotheCompanyandthecostoftheassetscanbemeasuredreliably.
2.Depreciationmethodofdifferentcategoriesoffixedassets?Applicable?NotApplicable
| Categories | Depreciationmethod | Usefullife(years) | Residualvalueproportion(%) | Annualdepreciationrate(%) |
| Buildingsandstructures | Straight-linemethod | 20-30 | 5 | 3.17-4.75 |
| Machinery | Straight-linemethod | 10 | 5 | 9.50 |
| Officeequipment | Straight-linemethod | 5 | 5 | 19.00 |
| Electronicequipment | Straight-linemethod | 3 | 5 | 31.67 |
| Transportfacilities | Straight-linemethod | 10 | 5 | 9.50 |
22.Constructioninprogress?Applicable?NotApplicable
1.Constructioninprogressisrecognizedif,andonlyif,itisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheCompany,andthecostoftheitemcanbemeasuredreliably.Constructioninprogressismeasuredattheactualcostincurredtoreachitsdesignedusableconditions.
2.Constructioninprogressistransferredintofixedassetsatitsactualcostwhenitreachesthedesignedusableconditions.Whentheauditingoftheconstructioninprogresswasnotfinishedwhilereachingthedesignedusableconditions,itistransferredtofixedassetsusingestimatedvaluefirst,andthenadjustedaccordinglywhentheactualcostissettled,buttheaccumulateddepreciationisnottobeadjustedretrospectively.
23.Borrowingcosts
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?Applicable?NotApplicable
1.RecognitionprincipleofborrowingcostscapitalizationWheretheborrowingcostsincurredtotheCompanycanbedirectlyattributabletotheacquisitionandconstructionorproductionofassetseligibleforcapitalization,itiscapitalizedandincludedinthecostsofrelevantassets;otherborrowingcostsarerecognizedasexpensesonthebasisoftheactualamountincurred,andareincludedinprofitorloss.
2.Borrowingcostscapitalizationperiod
(1)Theborrowingcostsarenotcapitalizedunlessthefollowingrequirementsareallmet:1)theassetdisbursementshavealreadyincurred;2)theborrowingcostshavealreadyincurred;and3)theacquisitionandconstructionorproductionactivitieswhicharenecessarytopreparetheassetforitsintendeduseorsalehavealreadystarted.
(2)Suspensionofcapitalization:wheretheacquisitionandconstructionorproductionofaqualifiedassetisinterruptedabnormallyandtheinterruptionperiodlastsformorethan3months,thecapitalizationoftheborrowingcostsissuspended;theborrowingcostsincurredduringsuchperiodarerecognizedasexpenses,andareincludedinprofitorloss,tilltheacquisitionandconstructionorproductionoftheassetrestarts.
(3)Ceasingofcapitalization:whenthequalifiedassetunderacquisitionandconstructionorproductionisreadyfortheintendeduseorsale,thecapitalizationoftheborrowingcostsisceased.
3.CapitalizationrateandcapitalizedamountofborrowingcostsForborrowingsexclusivelyfortheacquisitionandconstructionorproductionofassetseligibleforcapitalization,theto-be-capitalizedamountofinterestsisdeterminedinlightoftheactualinterestexpensesincurred(includingamortizationofpremiumordiscountbasedoneffectiveinterestmethod)ofthespecialborrowingsinthecurrentperiodlesstheinterestincomeontheunusedborrowingsasadepositinthebankorasatemporaryinvestment;whereageneralborrowingisusedfortheacquisitionandconstructionorproductionofassetseligibleforcapitalization,theCompanycalculatesanddeterminestheto-be-capitalizedamountofinterestsonthegeneralborrowingbymultiplyingtheweightedaverageassetdisbursementofthepartoftheaccumulativeassetdisbursementslessthegeneralborrowingbythecapitalizationrateofthegeneralborrowingused.
24.Biologicalassets?Applicable?NotApplicable
25.Oilandgasassets?Applicable?NotApplicable
26.Intangibleassets
(1)Usefullifeanditsdeterminationbasis,estimation,amortizationmethod,orreviewprocedures?Applicable?NotApplicable
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1.Intangibleassetsincludelanduseright,software,trademark,userightofpharmaceuticallicensingqualificationsetc.Theinitialmeasurementofintangibleassetsisbasedonitscost.
2.Forintangibleassetswithfiniteusefullives,theiramortizationamountsareamortizedwithintheirusefullivessystematicallyandreasonably,ifitisunabletodeterminetheexpectedrealizationpatternreliably,intangibleassetsareamortizedbythestraight-linemethodwithdetailsasfollows:
| Items | Amortizationperiod(years) |
| Landuseright | 40-50 |
| Software | 5-10 |
| Trademark | 5-10 |
| Userightofpharmaceuticallicensingqualifications | 10 |
(2)PermittedscopeandaccountingtreatmentofR&Dcosts?Applicable?NotApplicable
(1)PersonnelcostsPersonnelcostsincludewagesandsalaries,basicendowmentinsurancepremiums,basicmedicalinsurancepremiums,unemploymentinsurancepremiums,occupationalinjuriespremiums,maternitypremiumsandhousingprovidentfundsfortheCompany’sR&Dpersonnel,aswellaslaborcostsforexternalR&Dpersonnel.
(2)DirectinputcostsDirectinputcostsrefertorelevantexpensesactuallyincurredbytheCompanyforR&Dactivities.
(3)Depreciationandlong-termprepaymentsDepreciationreferstothedepreciationofinstruments,equipmentandin-usebuildingsusedforR&Dactivities.
(4)AmortizationofintangibleassetsAmortizationofintangibleassetsrefertotheamortizationofsoftware,intellectualproperty,andnon-patentedtechnology(proprietarytechnology,licenses,designandcalculationmethods,etc.)usedforR&Dactivities.
(5)OtherexpensesOtherexpensesrefertoexpensesotherthanthosementionedabovethataredirectlyrelatedtoR&Dactivities.Expendituresontheresearchphaseofaninternalprojectarerecognizedasprofitorlosswhentheyareincurred.AnintangibleassetarisingfromthedevelopmentphaseofaninternalprojectisrecognizediftheCompanycandemonstrateallofthefollowings:(1)thetechnicalfeasibilityofcompletingtheintangibleassetsothatitwillbeavailableforuseorsale;(2)itsintentiontocompletetheintangibleassetanduseorsellit;(3)howtheintangibleassetwillgenerateprobablefutureeconomicbenefits,amongotherthings,theCompanycandemonstratetheexistenceofamarketfortheoutputofthe
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intangibleassetortheintangibleassetitselfor,ifitistobeusedinternally,theusefulnessoftheintangibleasset;(4)theavailabilityofadequatetechnical,financialandotherresourcestocompletethedevelopmentandtouseorselltheintangibleasset;and(5)itsabilitytomeasurereliablytheexpenditureattributabletotheintangibleassetduringitsdevelopment.
27.Impairmentofpartoflong-termassets?Applicable?NotApplicableForlong-termassetssuchaslong-termequityinvestments,fixedassets,constructioninprogress,right-of-useassets,intangibleassetswithfiniteusefullives,etc.,ifatthebalancesheetdatethereisindicationofimpairment,therecoverableamountistobeestimated.Forgoodwillrecognizedinbusinesscombinationandintangibleassetswithindefiniteusefullives,nomatterwhetherthereisindicationofimpairment,impairmenttestisperformedannually.Impairmenttestongoodwillisperformedonrelatedassetgrouporassetgroupportfolio.Whentherecoverableamountofsuchlong-termassetsislowerthantheircarryingamount,thedifferenceisrecognizedasprovisionforassetsimpairmentthroughprofitorloss.
28.Long-termprepayments?Applicable?NotApplicableLong-termprepaymentsareexpensesthathavebeenrecognizedbutwithamortizationperiodoveroneyear(excludingoneyear).Theyarerecordedwithactualcost,andevenlyamortizedwithinthebeneficiaryperiodorstipulatedperiod.Ifitemsoflong-termprepaymentsfailtobebeneficialtothefollowingaccountingperiods,residualvaluesofsuchitemsareincludedinprofitorloss.
29.Contractliabilities?Applicable?NotApplicableTheCompanypresentsanobligationtotransfergoodstoacustomerforwhichtheCompanyhasreceivedconsideration(ortheamountisdue)fromthecustomerasacontractliability.
30.Employeebenefits
(1).Accountingtreatmentsofshort-termemployeebenefits?Applicable?NotApplicableTheCompanyrecognizes,intheaccountingperiodinwhichanemployeeprovidesservice,short-termemployeebenefitsactuallyincurredasliabilities,withacorrespondingchargetoprofitorlossorthecostofarelevantasset.
(2).Accountingtreatmentsofpost-employmentbenefits?Applicable?NotApplicableTheCompanyclassifiespost-employmentbenefitplansaseitherdefinedcontributionplansordefinedbenefitplans.
(1)TheCompanyrecognizesintheaccountingperiodinwhichanemployeeprovidesservicethecontributionpayabletoadefinedcontributionplanasaliability,withacorrespondingchargetoprofitor
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lossorthecostofarelevantasset.
(2)AccountingtreatmentbytheCompanyfordefinedbenefitplanusuallyinvolvesthefollowingsteps:
1)Inaccordancewiththeprojectedunitcreditmethod,usingunbiasedandmutuallycompatibleactuarialassumptionstoestimaterelateddemographicvariablesandfinancialvariables,measuretheobligationsunderthedefinedbenefitplan,anddeterminetheperiodstowhichtheobligationsareattributed.Meanwhile,theCompanydiscountsobligationsunderthedefinedbenefitplantodeterminethepresentvalueofthedefinedbenefitplanobligationsandthecurrentservicecost;
2)Whenadefinedbenefitplanhasassets,theCompanyrecognizesthedeficitorsurplusbydeductingthefairvalueofdefinedbenefitplanassetsfromthepresentvalueofthedefinedbenefitplanobligationasanetdefinedbenefitplanliabilityornetdefinedbenefitplanasset.Whenadefinedbenefitplanhasasurplus,theCompanymeasuresthenetdefinedbenefitplanassetatthelowerofthesurplusinthedefinedbenefitplanandtheassetceiling;
3)Attheendoftheperiod,theCompanyrecognizesthefollowingcomponentsofemployeebenefitscostarisingfromdefinedbenefitplan:a.servicecost;b.netinterestonthenetdefinedbenefitplanliability(asset);andc.changesasaresultofremeasurementofthenetdefinedbenefitliability(asset).Itemaanditembarerecognizedinprofitorlossorthecostofarelevantasset.Itemcisrecognizedinothercomprehensiveincomeandisnottobereclassifiedsubsequentlytoprofitorloss.However,theCompanymaytransferthoseamountsrecognizedinothercomprehensiveincomewithinequity.
(3).AccountingtreatmentsofTerminationbenefits?Applicable?NotApplicableTerminationbenefitsprovidedtoemployeesarerecognizedasanemployeebenefitliabilityforterminationbenefits,withacorrespondingchargetoprofitorlossattheearlierofthefollowingdates:(1)whentheCompanycannotunilaterallywithdrawtheofferofterminationbenefitsbecauseofanemploymentterminationplanoracurtailmentproposal;or(2)whentheCompanyrecognizescostorexpensesrelatedtoarestructuringthatinvolvesthepaymentofterminationbenefits.
(4).AccountingtreatmentsofOtherlong-termemployeebenefits?Applicable?NotApplicableWhenotherlong-termemployeebenefitsprovidedtotheemployeessatisfiedtheconditionsforclassifyingasadefinedcontributionplan,thosebenefitsareaccountedforinaccordancewiththerequirementsrelatingtodefinedcontributionplan,whileotherbenefitsareaccountedforinaccordancewiththerequirementsrelatingtodefinedbenefitplan.TheCompanyrecognizesthecostofemployeebenefitsarisingfromotherlong-termemployeebenefitsasthefollowings:(1)servicecost;(2)netinterestonthenetliabilityornetassetsofotherlong-termemployeebenefits;and(3)changesasaresultofremeasurementofthenetliabilityornetassetsofotherlong-termemployeebenefits.Asapracticalexpedient,thenettotaloftheaforesaidamountsisrecognizedinprofitorlossorincludedinthecostofarelevantasset.
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31.Provisions?Applicable?NotApplicable
1.Provisionsarerecognizedwhenfulfillingthepresentobligationsarisingfromcontingenciessuchasprovidingguaranteeforotherparties,litigation,productsqualityguarantee,onerouscontract,etc.,maycausetheoutflowoftheeconomicbenefitandsuchobligationscanbereliablymeasured.
2.Theinitialmeasurementofprovisionsisbasedonthebestestimatedexpendituresrequiredinfulfillingthepresentobligations,anditscarryingamountisreviewedatthebalancesheetdate.
32.Share-basedpayment?Applicable?NotApplicable
1.Typesofshare-basedpaymentShare-basedpaymentconsistsofequity-settledshare-basedpaymentandcash-settledshare-basedpayment.
2.Accountingtreatmentforsettlements,modificationsandcancellationsofshare-basedpaymentplans
(1)Equity-settledshare-basedpaymentForequity-settledshare-basedpaymenttransactionwithemployees,iftheequityinstrumentsgrantedvestimmediately,thefairvalueofthoseequityinstrumentsismeasuredatgrantdateandrecognizedastransactioncostorexpense,withacorrespondingadjustmentincapitalreserve;iftheequityinstrumentsgranteddonotvestuntilthecounterpartycompletesaspecifiedperiodofservice,atthebalancesheetdatewithinthevestingperiod,thefairvalueofthoseequityinstrumentsmeasuredatgrantdatebasedonthebestestimateofthenumberofequityinstrumentsexpectedtovestisrecognizedastransactioncostorexpense,withacorrespondingadjustmentincapitalreserve.Forequity-settledshare-basedpaymenttransactionwithpartiesotherthanemployees,ifthefairvalueoftheservicesreceivedcanbemeasuredreliably,thefairvalueismeasuredatthedatetheCompanyreceivestheservice;ifthefairvalueoftheservicesreceivedcannotbemeasuredreliably,butthatofequityinstrumentscanbemeasuredreliably,thefairvalueoftheequityinstrumentsgrantedmeasuredatthedatetheCompanyreceivestheserviceisreferredto,andrecognizedastransactioncostorexpense,withacorrespondingincreaseinequity.
(2)Cash-settledshare-basedpaymentForcash-settledshare-basedpaymenttransactionswithemployees,ifshareappreciationrightsvestimmediately,thefairvalueoftheliabilityincurredastheacquisitionofservicesismeasuredatgrantdateandrecognizedastransactioncostorexpense,withacorrespondingincreaseinliabilities;ifshareappreciationrightsdonotvestuntiltheemployeeshavecompletedaspecifiedperiodofservice,theliabilityismeasured,ateachbalancesheetdateuntilsettled,atthefairvalueoftheshareappreciationrightsmeasuredatgrantdatebasedonthebestestimateofthenumberofshareappreciationrightexpectedtovest.
(3)Modificationsandcancellationsofshare-basedpaymentplan
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Ifthemodificationincreasesthefairvalueoftheequityinstrumentsgranted,theCompanyincludestheincrementalfairvaluegrantedinthemeasurementoftheamountrecognizedforservicesreceivedasconsiderationfortheequityinstrumentsgranted;similarly,ifthemodificationincreasesthenumberofequityinstrumentsgranted,theCompanyincludesthefairvalueoftheadditionalequityinstrumentsgranted,inthemeasurementoftheamountrecognizedforservicesreceivedasconsiderationfortheequityinstrumentsgranted;iftheCompanymodifiesthevestingconditionsinamannerthatisbeneficialtotheemployee,theCompanytakesthemodifiedvestingconditionsintoaccount.Ifthemodificationreducesthefairvalueoftheequityinstrumentsgranted,theCompanydoesnottakeintoaccountthatdecreaseinfairvalueandcontinuetomeasuretheamountrecognizedforservicesreceivedasconsiderationfortheequityinstrumentsbasedonthegrantdatefairvalueoftheequityinstrumentsgranted;ifthemodificationreducesthenumberofequityinstrumentsgrantedtoanemployee,thatreductionisaccountedforasacancellationofthatportionofthegrant;iftheCompanymodifiesthevestingconditionsinamannerthatisnotbeneficialtotheemployee,theCompanydoesnottakethemodifiedvestingconditionsintoaccount.IftheCompanycancelsorsettlesagrantofequityinstrumentsduringthevestingperiod(otherthanthatcancelledwhenthevestingconditionsarenotsatisfied),theCompanyaccountsforthecancellationorsettlementasanaccelerationofvesting,andthereforerecognizesimmediatelytheamountthatotherwisewouldhavebeenrecognizedforservicesreceivedovertheremainderofthevestingperiod.
33.Otherfinancialinstrumentssuchaspreferredsharesandperpetualbonds?Applicable?NotApplicablePursuanttoCASBEsonfinancialinstrumentsand“RegulationsonAccountingTreatmentsofPerpetualBonds”(CaiKuai[2019]No.2)issuedbytheMinistryofFinance,forfinancialinstrumentssuchasconvertiblebondsetc.,theCompanyclassifiesafinancialinstrumentoritscomponentsatinitialrecognitionasafinancialassetorliabilityorequityinstrument,basedoncontracttermsandeconomicessenceitrevealsinsteadofitslegalform,combiningwiththedefinitionsoffinancialasset,liabilityandequityinstrument.Atthebalancesheetdate,forafinancialinstrumentclassifiedasanequityinstrument,itsinterestexpenditureordividenddistributionistreatedasprofitdistribution,andsharerepurchaseandcancelationaretreatedaschangesinequity;forafinancialinstrumentclassifiedasafinancialliability,itsinterestexpenditureordividenddistributionistreatedasborrowingexpense,andgainorlossonrepurchaseorredemptionisincludedinprofitorloss.
34.Revenue
(1).Disclosureofaccountingpoliciesadoptedforrevenuerecognitionandmeasurementbasedon
businesstypes
?Applicable?NotApplicable
1.Revenuerecognitionprinciples
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Atcontractinception,theCompanyshallassessthecontractsandshallidentifyeachperformanceobligationinthecontracts,anddeterminewhethertheperformanceobligationshouldbesatisfiedovertimeoratapointintime.TheCompanysatisfiesaperformanceobligationovertimeifoneofthefollowingcriteriaismet,otherwise,theperformanceobligationissatisfiedatapointintime:(1)thecustomersimultaneouslyreceivesandconsumestheeconomicbenefitsprovidedbytheCompany’sperformanceastheCompanyperforms;(2)thecustomercancontrolgoodsastheyarecreatedbytheCompany’sperformance;(3)goodscreatedduringtheCompany’sperformancehaveirreplaceableusesandtheCompanyhasanenforceablerighttothepaymentsforperformancecompletedtodateduringthewholecontractperiod.Foreachperformanceobligationsatisfiedovertime,theCompanyshallrecognizerevenueovertimebymeasuringtheprogresstowardscompletesatisfactionofthatperformanceobligation.Inthecircumstancethattheprogresscannotbemeasuredreasonably,butthecostsincurredinsatisfyingtheperformanceobligationareexpectedtoberecovered,theCompanyshallrecognizerevenueonlytotheextentofthecostsincurreduntilitcanreasonablymeasuretheprogress.Foreachperformanceobligationsatisfiedatapointintime,theCompanyshallrecognizerevenueatthetimepointthatthecustomerobtainscontrolofrelevantgoodsorservices.Todeterminewhetherthecustomerhasobtainedcontrolofgoods,theCompanyshallconsiderthefollowingindications:(1)theCompanyhasapresentrighttopaymentsforthegoods,i.e.,thecustomerispresentlyobligedtopayforthegoods;(2)theCompanyhastransferredthelegaltitleofthegoodstothecustomer,i.e.,thecustomerhaslegaltitletothegoods;(3)theCompanyhastransferredphysicalpossessionofthegoodstothecustomer,i.e.,thecustomerhasphysicallypossessedthegoods;(4)theCompanyhastransferredsignificantrisksandrewardsofownershipofthegoodstothecustomer,i.e.,thecustomerhasobtainedsignificantrisksandrewardsofownershipofthegoods;(5)thecustomerhasacceptedthegoods;(6)otherevidenceindicatingthecustomerhasobtainedcontroloverthegoods.
2.Revenuemeasurementprinciple
(1)Revenueismeasuredattheamountofthetransactionpricethatisallocatedtoeachperformanceobligation.ThetransactionpriceistheamountofconsiderationtowhichtheCompanyexpectstobeentitledinexchangefortransferringgoodsorservicestoacustomer,excludingamountscollectedonbehalfofthirdpartiesandthoseexpectedtoberefundedtothecustomer.
(2)Iftheconsiderationpromisedinacontractincludesavariableamount,theCompanyshallconfirmthebestestimateofvariableconsiderationatexpectedvalueorthemostlikelyamount.However,thetransactionpricethatincludestheamountofvariableconsiderationonlytotheextentthatitishighprobablethatasignificantreversalintheamountofcumulativerevenuerecognizedwillnotoccurwhentheuncertaintyassociatedwiththevariableconsiderationissubsequentlyresolved.
(3)Inthecircumstancethatthecontractcontainsasignificantfinancingcomponent,theCompanyshalldeterminethetransactionpricebasedonthepricethatacustomerwouldhavepaidforifthecustomer
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hadpaidcashforobtainingcontroloverthosegoodsorservices.Thedifferencebetweenthetransactionpriceandtheamountofpromisedconsiderationisamortizedundereffectiveinterestmethodovercontractualperiod.TheeffectsofasignificantfinancingcomponentshallnotbeconsiderediftheCompanyexpects,atthecontractinception,thattheperiodbetweenwhenthecustomerobtainscontrolovergoodsorservicesandwhenthecustomerpaysconsiderationwillbeoneyearorless.
(4)Forcontractscontainingtwoormoreperformanceobligations,theCompanyshalldeterminethestand-alonesellingpriceatcontractinceptionofthedistinctgoodunderlyingeachperformanceobligationandallocatethetransactionpricetoeachperformanceobligationonarelativestand-alonesellingpricebasis.
3.Revenuerecognitionmethod
(1)RetailbusinessTheCompany’spharmaceuticalretailbusinessisaperformanceobligationsatisfiedatapointintimeandrevenueisrecognizedwhenretailstoressellproductstothecustomersviacashpayment(includingviabankcard)orthroughmedicalinsurance,andtheCompanyhascollectedthepaymentsorhasobtainedbankreceiptsormedicalinsurancereceipts.
(2)WholesalebusinessWholesalebusinessisaperformanceobligationsatisfiedatapointintime,andmaincustomersofwholesalebusinessarepharmaceuticalcommercialcompanies.RevenueisrecognizedwhentheCompanyhasdeliveredgoodstothebuyerasagreedbycontract,hasobtaineddeliverynoteswithsignatureofthebuyer,andsignificantrisksandrewardsofownershipofthegoodshavebeentransferredtothebuyer.
(3)RenderingofpromotionalservicesRenderingofpromotionalservicesisaperformanceobligationsatisfiedovertime.RevenuefromrenderingofpromotionalservicesisrecognizedwhentheCompanyhasprovidedpromotionalservicesandhasobtainedorhighlyprobabletoreceivepayments.
(2).Differentrevenuerecognitionmethodsandmeasurementtechniquesforsimilarbusinessesinvolvingdifferentoperatingmodels?Applicable?NotApplicable
35.Costsofobtainingacontract?Applicable?NotApplicableTheCompanypresentscontractassetsorcontractliabilitiesinthebalancesheetbasedontherelationshipbetweenitsperformanceobligationsandcustomers’payments.Contractassetsandcontractliabilitiesunderthesamecontractshalloffseteachotherandbepresentedonanetbasis.TheCompanypresentsanunconditionalrighttoconsideration(i.e.,onlythepassageoftimeisrequiredbeforetheconsiderationisdue)asareceivable,andpresentsarighttoconsiderationinexchangeforgoodsthatithastransferredtoacustomer(whichisconditionalonsomethingotherthanthepassageof
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time)asacontractasset.TheCompanypresentsanobligationtotransfergoodstoacustomerforwhichtheCompanyhasreceivedconsideration(ortheamountisdue)fromthecustomerasacontractliability.
36.Governmentgrants?Applicable?NotApplicable
1.Governmentgrantsshallberecognizedif,andonlyif,thefollowingconditionsareallmet:(1)theCompanywillcomplywiththeconditionsattachingtothegrants;(2)thegrantswillbereceived.Monetarygovernmentgrantsaremeasuredattheamountreceivedorreceivable.Non-monetarygovernmentgrantsaremeasuredatfairvalue,andcanbemeasuredatnominalamountinthecircumstancethatfairvaluecannotbeassessed.
2.GovernmentgrantsrelatedtoassetsGovernmentgrantsrelatedtoassetsaregovernmentgrantswithwhichtheCompanypurchases,constructsorotherwiseacquireslong-termassetsunderrequirementsofgovernment.Inthecircumstancesthatthereisnospecificgovernmentrequirement,theCompanyshalldeterminebasedontheprimaryconditiontoacquirethegrants,andgovernmentgrantsrelatedtoassetsaregovernmentgrantswhoseprimaryconditionistoconstructorotherwiseacquirelong-termassets.Theyoffsetcarryingamountofrelevantassets,ortheyarerecognizedasdeferredincome.Ifrecognizedasdeferredincome,theyareincludedinprofitorlossonasystematicbasisovertheusefullivesoftherelevantassets.Thosemeasuredatnotionalamountaredirectlyincludedintoprofitorloss.Forassetssold,transferred,disposedordamagedwithintheusefullives,balanceofunamortizeddeferredincomeistransferredintoprofitorlossoftheperiodinwhichthedisposaloccurred.
3.GovernmentgrantsrelatedtoincomeGovernmentgrantsrelatedtoincomearegovernmentgrantsotherthanthoserelatedtoassets.Forgovernmentgrantsthatcontainbothpartsrelatedtoassetsandpartsrelatedtoincome,inwhichthosetwopartsareblurred,theyarethuscollectivelyclassifiedasgovernmentgrantsrelatedtoincome.Forgovernmentgrantsrelatedtoincomeusedforcompensatingtherelatedfuturecost,expensesorlosses,theyarerecognizedasdeferredincomeandincludedinprofitorlossorusedtooffsetrelevantcostduringtheperiodinwhichtherelevantcost,expensesorlossesarerecognized;forgovernmentgrantsrelatedtoincomeusedforcompensatingtherelatedcost,expensesorlossesincurredtotheCompany,theyaredirectlyincludedinprofitorlossorusedtooffsetrelevantcost.
4.Governmentgrantsrelatedtotheordinarycourseofbusinessshallbeincludedintootherincomeorusedtooffsetrelevantcostbasedonbusinessnature,whilethosenotrelatedtotheordinarycourseofbusinessshallbeincludedintonon-operatingrevenueorexpenditures.
37.Deferredtaxassets/Deferredtaxliabilities?Applicable?NotApplicable
1.Deferredtaxassetsordeferredtaxliabilitiesarecalculatedandrecognizedbasedonthedifference
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betweenthecarryingamountandtaxbaseofassetsandliabilities(andthedifferenceofthecarryingamountandtaxbaseofitemsnotrecognizedasassetsandliabilitiesbutwiththeirtaxbasebeingabletobedeterminedaccordingtotaxlaws)andinaccordancewiththetaxrateapplicabletotheperiodduringwhichtheassetsareexpectedtoberecoveredortheliabilitiesareexpectedtobesettled.
2.Adeferredtaxassetisrecognizedtotheextentoftheamountofthetaxableincome,whichismostlikelytoobtainandwhichcanbedeductedfromthedeductibletemporarydifference.Atthebalancesheetdate,ifthereisanyexactevidencethatitisprobablethatfuturetaxableincomewillbeavailableagainstwhichdeductibletemporarydifferencescanbeutilized,thedeferredtaxassetsunrecognizedinpriorperiodsarerecognized.
3.Atthebalancesheetdate,thecarryingamountofdeferredtaxassetsisreviewed.Thecarryingamountofadeferredtaxassetisreducedtotheextentthatitisnolongerprobablethatsufficienttaxableincomewillbeavailabletoallowthebenefitofthedeferredtaxassettobeutilized.Suchreductionissubsequentlyreversedtotheextentthatitbecomesprobablethatsufficienttaxableincomewillbeavailable.
4.Theincometaxanddeferredtaxfortheperiodaretreatedasincometaxexpensesorincomethroughprofitorloss,excludingthosearisingfromthefollowingcircumstances:(1)businesscombination;and
(2)thetransactionsoritemsdirectlyrecognizedinequity.
5.Deferredtaxassetsanddeferredtaxliabilitiesshalloffseteachotherandbepresentedonanetbasiswhenthefollowingconditionsareallmet:(1)theCompanyhasthelegalrighttosettleoffcurrenttaxassetsagainstcurrenttaxliabilities;(2)thedeferredtaxassetsandthedeferredtaxliabilitiesrelatetoincometaxesleviedbythesametaxauthorityoneither:1)thesametaxableentity;or2)differenttaxableentitieswhichintendeithertosettlecurrenttaxliabilitiesandassetsonanetbasis,ortorealizetheassetsandsettletheliabilitiessimultaneously,ineachfutureperiodinwhichsignificantamountsofdeferredtaxassetsorliabilitiesareexpectedtoberecoveredorsettled.
38.Leases?Applicable?NotApplicableBasisforjudgmentandaccountingtreatmentmethodsforsimplifiedapproachofshort-termleasesandleasesoflow-valueassetsasalessee.?Applicable?NotApplicable
1.TheCompanyaslesseeAtthecommencementdate,theCompanyrecognizesaleasethathasaleasetermof12monthsorlessasashort-termlease,whichshallnotcontainapurchaseoption;theCompanyrecognizesaleaseasaleaseofalow-valueassetiftheunderlyingassetisoflowvaluewhenitisnew.IftheCompanysubleasesanasset,orexpectstosubleaseanasset,theheadleasedoesnotqualifyasaleaseofalow-valueasset.Forallshort-termleasesandleasesoflow-valueassets,leasepaymentsarerecognizedascostorprofit
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orlosswithstraight-linemethodovertheleaseterm.Apartfromtheabove-mentionedshort-termleasesandleasesoflow-valueassetswithsimplifiedapproach,theCompanyrecognizesright-of-useassetsandleaseliabilitiesatthecommencementdate.
(1)Right-of-useassetsTheright-of-useassetismeasuredatcostandthecostshallcomprise:1)theamountoftheinitialmeasurementoftheleaseliabilities;2)anyleasepaymentsmadeatorbeforethecommencementdate,lessanyleaseincentivesreceived;3)anyinitialdirectcostsincurredbythelessee;and4)anestimateofcoststobeincurredbythelesseeindismantlingandremovingtheunderlyingasset,restoringthesiteonwhichitislocatedorrestoringtheunderlyingassettotheconditionrequiredbythetermsandconditionsofthelease.TheCompanydepreciatestheright-of-useassetusingthestraight-linemethod.Ifitisreasonabletobecertainthattheownershipoftheunderlyingassetcanbeacquiredbytheendoftheleaseterm,theCompanydepreciatestheright-of-useassetfromthecommencementdatetotheendoftheusefullifeoftheunderlyingasset.Otherwise,theCompanydepreciatestheright-of-useassetfromthecommencementdatetotheearlieroftheendoftheusefullifeoftheright-of-useassetortheendoftheleaseterm.
(2)LeaseliabilitiesAtthecommencementdate,theCompanymeasurestheleaseliabilityatthepresentvalueoftheleasepaymentsthatarenotpaidatthatdate,discountedusingtheinterestrateimplicitinthelease.Ifthatratecannotbereadilydetermined,theCompany’sincrementalborrowingrateshallbeused.Unrecognizedfinancingexpenses,calculatedatthedifferencebetweentheleasepaymentanditspresentvalue,arerecognizedasinterestexpensesovertheleasetermusingthediscountratewhichhasbeenusedtodeterminethepresentvalueofleasepaymentandincludedinprofitorloss.Variableleasepaymentsnotincludedinthemeasurementofleaseliabilitiesareincludedinprofitorlossintheperiodsinwhichtheyareincurred.Afterthecommencementdate,ifthereisachangeinthefollowingitems:(a)actualfixedpayments;(b)amountsexpectedtobepayableunderresidualvalueguarantees;(c)anindexorarateusedtodetermineleasepayments;(d)assessmentresultorexerciseofpurchaseoption,extensionoptionorterminationoption,theCompanyremeasurestheleaseliabilitybasedonthepresentvalueofleasepaymentsafterchanges,andadjuststhecarryingamountoftheright-of-useassetaccordingly.Ifthecarryingamountoftheright-of-useassetisreducedtozerobutthereshallbeafurtherreductionintheleaseliability,theremainingamountshallberecognizedintoprofitorloss.Classificationcriteriaandaccountingtreatmentmethodsforleasesasalessor?Applicable?NotApplicable
1.TheCompanyaslessorAtthecommencementdate,theCompanyclassifiesaleaseasafinanceleaseifittransferssubstantially
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alltherisksandrewardsincidentaltoownershipofanunderlyingasset.Otherwise,itisclassifiedasanoperatinglease.
(1)OperatingleaseLeasereceiptsarerecognizedasleaseincomewithstraight-linemethodovertheleaseterm.Initialdirectcostsincurredshallbecapitalized,amortizedonthesamebasisastherecognitionofleaseincome,andincludedintoprofitorlossbyinstallments.Variableleasepaymentsrelatedtooperatingleasewhicharenotincludedintheleasepaymentarechargedasprofitorlossintheperiodsinwhichtheyareincurred.
(2)FinanceleaseAtthecommencementdate,theCompanyrecognizesthefinanceleasepaymentreceivablebasedonthenetinvestmentinthelease(sumofthepresentvalueofunguaranteedresidualvalueandleasereceiptsthatarenotreceivedatthecommencementdate,discountedbytheinterestrateimplicitinthelease),andderecognizesassetsheldunderthefinancelease.TheCompanycalculatesandrecognizesinterestincomeusingtheinterestrateimplicitintheleaseovertheleaseterm.Variableleasepaymentsnotincludedinthemeasurementofthenetinvestmentintheleasearechargedasprofitorlossintheperiodsinwhichtheyareincurred.
3.Saleandleaseback,theCompanyasthelessorInaccordancewiththe“CASBE14–Revenues”,theCompanywouldassessanddeterminewhetherthetransferofanassetinthesaleandleasebacktransactionisaccountedforasasaleofthatasset.Ifthetransferofanassetisaccountedforasasaleoftheasset,theCompanyaccountsforthepurchaseofassetsinaccordancewithotherapplicablestandards,andaccountsfortheleaseofassetsinaccordancewiththe“CASBE21–Leases”.Otherwise,theCompanydoesnotrecognizethetransferredasset,butrecognizesafinancialassetequaltotheamountoftransferincomeinaccordancewiththe“CASBE22–FinancialInstruments:
RecognitionandMeasurement”.
39.Othersignificantaccountingpoliciesandestimates?Applicable?NotApplicableAccountingtreatmentrelatedtosharerepurchaseWhentheCompanyrepurchasesitssharesforthepurposeofreducingitsregisteredcapitalorrewardingitsemployees,ifthepurchasedsharesaretobekeptastreasuryshares,thetreasurysharesarerecordedatthecashdistributedtoexistingshareholdersforrepurchase;ifthepurchasedsharesaretoberetired,thedifferencebetweenthetotalbookvalueofsharesretiredandthecashdistributedtoexistingshareholdersforrepurchaseistoreducecapitalreserve,orretainedearningswhenthecapitalreserveisnotenoughtoreduce.IftheCompanyrepurchasesvestedequityinstrumentsinequity-settledshare-basedpaymenttransactionswithemployees,costoftreasurysharesgrantedtoemployeesand
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capitalreserve(othercapitalreserve)accumulatedwithinthevestingperiodaretobewrittenoffonthepaymentmadetoemployees,withacorrespondingadjustmentincapitalreserve(sharepremium).
40.Significantchangesinaccountingpoliciesandestimates
(1).Changesinaccountingpolicies?Applicable?NotApplicable
(2).Changesinaccountingestimates?Applicable?NotApplicable
(3).Financialstatementsinvolvingadjustmentsatthebeginningoftheyearoffirstimplementationfirstimplementednewaccountingstandardsorstandardinterpretationsfrom2024?Applicable?NotApplicable
41.Others?Applicable?NotApplicableVI.Taxes
1.MaintaxesandtaxratesMaintaxesandtaxrates?Applicable?NotApplicable
| Taxes | Taxbases | Taxrates |
| Value-addedtax(VAT) | SalesofwesternmedicineandChinesepatentmedicine,etc. | 13% |
| SalesoftrocheofChinesetraditionalmedicine,etc. | 9%, | |
| Salesofbirthcontrolnecessities | duty-free | |
| Salesofbiologics | 3% | |
| Subleasebusiness | 5% | |
| Taxableservices(promotionalservices,etc.) | 6% | |
| Incomeofsmall-scaletaxpayers | 3%,duty-free | |
| Housingpropertytax | Forhousingpropertyleviedonthebasisofprice,housingpropertytaxisleviedattherateof1.2%ofthebalanceafterdeducting20%—30%ofthecost;forhousingpropertyleviedonthebasisofrent,housingpropertytaxisleviedattherateof12%ofleaseincome. | 1.2%；12% |
| Urbanmaintenanceandconstructiontax | Turnovertaxactuallypaid | 7%、5%、1% |
| Educationsurcharge | Turnovertaxactuallypaid | 3% |
| Localeducationsurcharge | Turnovertaxactuallypaid | 2% |
| Enterpriseincometax | Taxableincome | 25%、20%、15% |
Differententerpriseincometaxratesapplicabletodifferenttaxpayers:
?Applicable?NotApplicable
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| Taxpayers | Incometaxrate |
| HainanYifengInternetHospitalCo.,Ltd. | 15% |
| HengxiutangPharmaceuticalCo.,Ltd.(the“HengxiutangPharmaceutical”) | 15% |
| Eligiblesmallenterpriseswithmeagerprofit | 20% |
| Taxpayersotherthantheabove-mentioned | 25% |
2.Taxpreferentialpolicies?Applicable?NotApplicable
1.VAT
(1)Pursuanttothe“AnnouncementonPoliciesforVATReductionandExemptionofSmall-scaleVATTaxpayers”(AnnouncementoftheMinistryofFinanceandtheStateTaxationAdministration[2023]No.
19),fromJanuary1,2023toDecember31,2023,small-scaleVATtaxpayerswithmonthlysaleslessthan100,000yuan(inclusive)areexemptedfromVAT;duringthesameperiod,thetaxablesalesincomeofsmall-scaleVATtaxpayersapplicabletoaVATrateof3%shallbeleviedatareducedrateof1%;projectswithVATprepaidandapplicabletoaVATrateof3%shallbeleviedatareducedrateof1%.Taxpayersinconsumerservicesindustrywhosesalesfromprovidingconsumerservicesaccountformorethan50%ofthetotalsalesareallowedtodeductanextra10%ofVATpayablebasedontheirdeductibleinputtaxforthecurrentperiod.TheCompany’seligiblesmall-scaleVATtaxpayersenjoytheabove-mentionedVATpreferentialpolicies.
(2)Pursuanttothe“AnnouncementonTaxPoliciestoFurtherSupporttheEntrepreneurshipandEmploymentofSelf-EmployedVeterans”(AnnouncementoftheMinistryofFinance,StateTaxationAdministration,andMinistryofVeteransAffairs[2023]No.14),fromJanuary1,2023toDecember31,2027,enterprisesthatrecruitself-employedveterans,signlaborcontractswiththemforaperiodofmorethanoneyear,andpaysocialinsurancepremiumsinaccordancewiththelaw,shallenjoyadeductionwithinthestandardquotaforVAT,urbanmaintenanceandconstructiontax,educationsurcharge,localeducationsurchargeandenterpriseincometaxwithinthreeyearsbasedontheactualnumberofemployees,startingfromthemonthwhenthelaborcontractsaresignedandsocialinsurancepremiumsarepaid.TheCompany’seligiblesubsidiariesenjoytheabove-mentionedVATpreferentialpolicies.
(3)Pursuanttothe“AnnouncementonTaxPoliciestoFurtherSupporttheEntrepreneurshipandEmploymentofKeyGroups”(AnnouncementoftheMinistryofFinance,StateTaxationAdministration,MinistryofHumanResourcesandSocialSecurity,andMinistryofAgricultureandRuralAffairs[2023]No.15),fromJanuary1,2023toDecember31,2027,enterprisesthatrecruitindividualswhohavebeenliftedoutofpoverty,aswellasindividualswhohavebeenregisteredasunemployedformorethanhalfayearatpublicemploymentserviceagenciesofthehumanresourcesandsocialsecuritydepartmentsandholdan“EmploymentandEntrepreneurshipCertificate”oran“UnemploymentRegistrationCertificate”(indicating“enterprisetaxincentivepolicy”),signlaborcontractswiththemforaperiodofmorethan
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oneyear,andpaysocialinsurancepremiumsinaccordancewiththelaw,shallenjoyadeductionwithinthestandardquotaforVAT,urbanmaintenanceandconstructiontax,educationsurcharge,localeducationsurcharge,andenterpriseincometaxwithinthreeyearsbasedontheactualnumberofemployees,startingfromthemonthwhenthelaborcontractsaresignedandsocialinsurancepremiumsarepaid.TheCompany’seligiblesubsidiariesenjoytheabove-mentionedVATpreferentialpolicies.
2.Urbanmaintenanceandconstructiontax,educationsurchargeandlocaleducationsurchargeAccordingtoArticle2ofthe“AnnouncementonRelevantTaxPoliciestoFurtherSupporttheDevelopmentofSmallEnterpriseswithMeagerProfitandIndividually-ownedBusinesses”(AnnouncementoftheMinistryofFinanceandStateTaxationAdministration[2023]No.12),fromJanuary1,2023toDecember31,2027,theresourcetax(excludingwaterresourcetax),urbanmaintenanceandconstructiontax,housingpropertytax,urbanlandusetax,stampduty(excludingstampdutyofsecuritiestransactions),farmlandoccupationtax,educationsurchargeandlocaleducationsurchargeshallbeleviedbyhalfforsmall-scaleVATtaxpayers,smallenterpriseswithmeagerprofitandindividually-ownedbusinesses.TheCompany’seligiblesmall-scaleVATtaxpayersandsmallenterpriseswithmeagerprofitenjoytheabovepreferentialpolicies.
3.Enterpriseincometax
(1)Pursuanttothe“NoticeoftheMinistryofFinanceandtheStateTaxationAdministrationonthePreferentialPoliciesforEnterpriseIncomeTaxinHainanFreeTradePort”(CaiShui[2020]No.31),enterpriseincometaxofencouragedindustriesenterprisesregisteredandoperatingsubstantivelyinHainanFreeTradePortshallbeleviedatareducedrateof15%.HainanYifengInternetHospitalCo.,Ltd.,asubsidiaryoftheCompany,belongstotheencouragedindustryenterprisesandmeetstherelevantconditions,soitenjoystheabove-mentionedpreferentialpoliciesforenterpriseincometax,whichwasleviedatareducedrateof15%inthecurrentperiod.
(2)TheCompany’ssub-subsidiary,HengxiutangPharmaceutical,wasaccreditedasahigh-techenterprisebyDepartmentofScienceandTechnologyofHunanProvince,HunanProvincialDepartmentofFinanceandHunanProvincialTaxService,STA,andobtainedthehigh-techenterprisecertificatenumberedGR202243001098onOctober18,2022,withavalidperiodof3years(2022-2024).TheenterpriseincometaxofHengxiutangPharmaceuticalwasleviedatareducedrateof15%inthecurrentperiod.
(3)Pursuanttothe“AnnouncementonPreferentialIncomeTaxPoliciesforFurtherSupportforDevelopmentofSmallEnterpriseswithMeagerProfitandIndividually-ownedBusinesses”issuedbytheMinistryofFinanceandtheStateTaxationAdministration(AnnouncementoftheMinistryofFinanceandtheStateTaxationAdministration[2023]No.12),thepreferentialpolicyunderwhichtheenterpriseincometaxofsmallenterpriseswithmeagerprofitisleviedat20%basedon25%oftaxableincomewillbeextendeduntilDecember31,2027.TheCompany’seligiblesmallenterpriseswithmeagerprofitenjoytheabove-mentionedpreferentialpoliciesforenterpriseincometaxinthecurrentperiod.
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3.Others?Applicable?NotApplicableVII.Notestoitemsofconsolidatedfinancialstatements
1.Cashandbankbalances?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
| Cashonhand | 308,745.22 | 232,721.88 |
| Cashinbank | 2,189,855,471.76 | 2,469,121,545.98 |
| Othercashandbankbalances | 1,388,761,360.24 | 1,096,551,470.95 |
| Fundsdepositedinfinancecompany | ||
| Total | 3,578,925,577.22 | 3,565,905,738.81 |
| Including:Depositedoverseas |
Otherremarks:
Note:PleaserefertosectionX(VII)31ofnotestothefinancialstatementsfordetailsoncashandbankbalanceswithrestrictions
2.Held-for-tradingfinancialassets?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 | Reasonsandbasisfordesignation |
| Financialassetsclassifiedasatfairvaluethroughprofitorloss | 4,406,809,254.46 | 1,630,720,887.94 | / |
| Including: | |||
| Wealthmanagementproducts | 4,406,809,254.46 | 1,630,720,887.94 | / |
| Financialassetsdesignatedasatfairvaluethroughprofitorloss | |||
| Including: | |||
| Total | 4,406,809,254.46 | 1,630,720,887.94 | / |
Otherremarks?Applicable?NotApplicable
3.Held-for-tradingfinancialassets?Applicable?NotApplicable
4.Notesreceivable
(1)Detailsoncategories?Applicable?NotApplicable
(2)Pledgednotesatthebalancesheetdate
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?Applicable?NotApplicable
(3)Endorsedordiscountedbutunduenotesatthebalancesheetdate?Applicable?NotApplicable
(4)Detailsoncategoriesofprovisionforbaddebts?Applicable?NotApplicableNotesreceivablewithprovisionmadeonanindividualbasis?Applicable?NotApplicableNotesreceivablewithprovisionforbaddebtsmadeonacollectivebasis?Applicable?NotApplicableProvisionforbaddebtswithdrawnbasedonthegeneralmodelofexpectedcreditlosses?Applicable?NotApplicableDivisionbasisforthreestagesandproportionsofprovisionforbaddebtsNoneReasonsforsignificantchangesincarryingamountofnotesreceivableinthecurrentperiod?Applicable?NotApplicable
(5)Provisionforbaddebts?Applicable?NotApplicableSignificantprovisionscollectedorreversed?Applicable?NotApplicableOtherremarksNone
(6)Notesreceivableactuallywrittenoffinthecurrentperiod?Applicable?NotApplicableSignificantnotesreceivablewrittenoffinthecurrentperiod?Applicable?NotApplicableRemarksonnotesreceivablewrittenoff?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
5.Accountsreceivable
(1)Ageanalysis?Applicable?NotApplicable
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| Ages | Closingbalance | Openingbalance |
| Within1year | 2,136,171,181.13 | 2,148,878,038.45 |
| 1-2years | 7,174,687.20 | 9,776,519.62 |
| 2-3years | 1,280,937.24 | 1,472,003.84 |
| 3-4years | 1,170,123.53 | 248,427.57 |
| 4-5years | 246,980.52 | 14,445.10 |
| Over5years | 121,248.58 | 111,803.48 |
| Total | 2,146,165,158.20 | 2,160,501,238.06 |
(2)Detailsoncategories?Applicable?NotApplicable
| Categories | Closingbalance | ||||
| Bookbalance | Provisionforbaddebts | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Receivableswithprovisionmadeonacollectivebasis | 2,146,165,158.20 | 100.00 | 22,180,246.77 | 1.03 | 2,123,984,911.43 |
| Total | 2,146,165,158.20 | 100.00 | 22,180,246.77 | 1.03 | 2,123,984,911.43 |
(Continued)
| Categories | December31,2023 | ||||
| Bookbalance | Provisionforbaddebts | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Receivableswithprovisionmadeonacollectivebasis | 2,160,501,238.06 | 100.00 | 22,226,918.18 | 1.03 | 2,138,274,319.88 |
| Total | 2,160,501,238.06 | 100.00 | 22,226,918.18 | 1.03 | 2,138,274,319.88 |
Accountsreceivablewithprovisionforbaddebtsmadeonanindividualbasis?Applicable?NotApplicableAccountsreceivablewithprovisionforbaddebtsmadeonacollectivebasis?Applicable?NotApplicable
| Items | Closingbalance | ||
| Bookbalance | Provisionforbaddebts | Provisionproportion(%) | |
| PortfoliogroupedMedicalinsurancepayments | 1,723,954,888.17 | ||
| Portfoliogroupedwithages | 422,210,270.03 | 22,180,246.77 | 5.25 |
| Subtotal | 2,146,165,158.20 | 22,180,246.77 | 1.03 |
Explanationofprovisionforbaddebtsmadeonacollectivebasis?Applicable?NotApplicable
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Provisionforbaddebtswithdrawnbasedonthegeneralmodelofexpectedcreditlosses?Applicable?NotApplicableDivisionbasisforthreestagesandproportionsofprovisionforbaddebtsNoneReasonsforsignificantchangesincarryingamountofaccountsreceivableinthecurrentperiod?Applicable?NotApplicable
(3)Changesinprovisionforbaddebts?Applicable?NotApplicable
| Items | Openingbalance | Changesinprovisionforbaddebts | Closingbalance | |||
| Accrual | Reversal | Write-off | Others | |||
| Receivableswithprovisionmadeonacollectivebasis | 22,226,918.18 | -47,233.17 | 561.76 | 22,180,246.77 | ||
| Total | 22,226,918.18 | -47,233.17 | 561.76 | 22,180,246.77 | ||
Significantprovisionscollectedorreversed?Applicable?NotApplicableOtherremarksNone
(4)Accountsreceivablewrittenoffinthecurrentperiod?Applicable?NotApplicableSignificantaccountsreceivablewrittenoffinthecurrentperiod?Applicable?NotApplicableRemarksonaccountsreceivablewrittenoff?Applicable?NotApplicable
(5)Detailsofthetop5debtorswithlargestbalancesofaccountsreceivableandcontractassets?Applicable?NotApplicable
| Debtors | Bookbalanceofaccountsreceivable | Bookbalanceofcontractassets | BookbalanceofAccountsreceivableandcontractassets | Proportiontothetotalbalanceofaccountsreceivable(%) | Provisionforbaddebts |
| WuhanMedicalInsuranceCenter | 195,020,988.36 | 195,020,988.36 | 9.09 | ||
| ChangshaMedicalSecurityAffairsCenter | 182,891,038.21 | 182,891,038.21 | 8.52 | ||
| XuzhouMedicalInsuranceFundManagementCenter | 98,805,215.09 | 98,805,215.09 | 4.60 | ||
| WuxiSocialInsuranceFundManagementCenter | 68,142,247.04 | 68,142,247.04 | 3.18 | ||
| NanjingSocialInsuranceManagementCenter | 61,930,839.65 | 61,930,839.65 | 2.89 |
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| Subtotal | 606,790,328.35 | 606,790,328.35 | 28.28 |
OtherremarksNoneOtherremarks?Applicable?NotApplicable
6.Contractassets
(1)Details?Applicable?NotApplicable
(2)Reasonsforsignificantchangesincarryingamountofcontractassets?Applicable?NotApplicable
(3)Detailsonprovisionforimpairment?Applicable?NotApplicableContractassetswithprovisionforimpairmentmadeonanindividualbasis?Applicable?NotApplicableRemarksoncontractassetswithprovisionforimpairmentmadeonanindividualbasis?Applicable?NotApplicableContractassetswithprovisionforimpairmentmadeonacollectivebasis?Applicable?NotApplicableProvisionforbaddebtswithdrawnbasedonthegeneralmodelofexpectedcreditlosses?Applicable?NotApplicableDivisionbasisforstagesandproportionsofprovisionforbaddebtsNoneReasonsforsignificantchangesincarryingamountofcontractassetsinthecurrentperiod?Applicable?NotApplicable
(4)Changesinprovisionforimpairment?Applicable?NotApplicableSignificantprovisionscollectedorreversed?Applicable?NotApplicableOtherremarksNone
(5)Contractassetsactuallywrittenoffinthecurrentperiod?Applicable?NotApplicableSignificantcontractassetswrittenoffinthecurrentperiod
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?Applicable?NotApplicableRemarksoncontractassetswrittenoff?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
7.Receivablesfinancing
(1)Detailsoncategories?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
| Bankacceptance | 29,445,006.56 | 11,889,888.58 |
| Total | 29,445,006.56 | 11,889,888.58 |
(2)Pledgedreceivablesfinancingatthebalancesheetdate?Applicable?NotApplicable
(3)Endorsedordiscountedbutunduenotesatthebalancesheetdate?Applicable?NotApplicable
| Items | Closingbalancederecognized |
| Bankacceptance | 68,187,552.34 |
| Subtotal | 68,187,552.34 |
Duetothefactthattheacceptorofbankacceptanceiscommercialbank,whichisofhighcreditlevel,thereisverylittlepossibilityoffailureinrecoverabilitywhenitisdue.Basedonthisfact,theCompanyderecognizedtheendorsedordiscountedbankacceptance.However,ifanybankacceptanceisnotrecoverablewhenitisdue,theCompanystillholdsjointliabilityonsuchacceptance,accordingtotheChinaCommercialInstrumentLaw.
(4)Provisionforimpairment?Applicable?NotApplicable
| Categories | Closingbalance | ||||
| Cost | Accumulatedprovisionforcreditimpairment | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Receivableswithprovisionforbaddebtsmadeonacollectivebasis | 29,445,006.56 | 100.00 | 29,445,006.56 | ||
| Including:Bankacceptance | 29,445,006.56 | 100.00 | 29,445,006.56 | ||
| Total | 29,445,006.56 | 100.00 | 29,445,006.56 | ||
(Continued)
| Categories | December31,2023 |
/
| Cost | Accumulatedprovisionforcreditimpairment | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Receivableswithprovisionforbaddebtsmadeonacollectivebasis | 11,889,888.58 | 100.00 | 11,889,888.58 | ||
| Including:Bankacceptance | 11,889,888.58 | 100.00 | 11,889,888.58 | ||
| Total | 11,889,888.58 | 100.00 | 11,889,888.58 | ||
Receivablesfinancingwithprovisionforbaddebtsmadeonanindividualbasis?Applicable?NotApplicableRemarksonreceivablesfinancingwithprovisionforbaddebtsmadeonanindividualbasis?Applicable?NotApplicableReceivablesfinancingwithprovisionforbaddebtsmadeonacollectivebasis?Applicable?NotApplicableProvisionforbaddebtswithdrawnbasedonthegeneralmodelofexpectedcreditlosses?Applicable?NotApplicableDivisionbasisforstagesandproportionsofprovisionforbaddebtsNoneReasonsforsignificantchangesincarryingamountofreceivablesfinancinginthecurrentperiod?Applicable?NotApplicable
(5)Changesinprovisionforcreditimpairment?Applicable?NotApplicableSignificantprovisionscollectedorreversed?Applicable?NotApplicableOtherremarksNone
(6)Receivablesfinancingactuallywrittenoffinthecurrentperiod?Applicable?NotApplicableSignificantreceivablesfinancingwrittenoffinthecurrentperiod?Applicable?NotApplicableRemarksonreceivablesfinancingwrittenoff?Applicable?NotApplicable
(7)Changesinreceivablesfinancinganditsfairvalue?Applicable?NotApplicable
(8)Otherremarks?Applicable?NotApplicable
/
8.Advancespaid
(1)Ageanalysis?Applicable?NotApplicable
| Ages | Closingbalance | December31,2023 | ||||||
| Bookbalance | %tototal | Provisionforimpairment | Carryingamount | Bookbalance | %tototal | Provisionforimpairment | Carryingamount | |
| Within1year | 265,375,430.28 | 87.63 | 265,375,430.28 | 133,181,872.92 | 94.13 | 133,181,872.92 | ||
| 1-2years | 32,981,693.46 | 10.89 | 32,981,693.46 | 4,728,693.61 | 3.34 | 4,728,693.61 | ||
| 2-3years | 1,737,153.18 | 0.57 | 1,737,153.18 | 2,848,124.45 | 2.01 | 2,848,124.45 | ||
| Over3years | 2,759,710.80 | 0.91 | 2,759,710.80 | 735,119.66 | 0.52 | 735,119.66 | ||
| Total | 302,853,987.72 | 100.00 | 302,853,987.72 | 141,493,810.64 | 100.00 | 141,493,810.64 | ||
ReasonsforunsettlementonadvancespaidwithageoveroneyearandsignificantamountNone
(2)Detailsofthetop5debtorswithlargestbalances?Applicable?NotApplicable
| Debtors | Bookbalance | Proportiontothetotalbalanceofadvancespaid(%) |
| SupplierA | 57,295,376.51 | 18.92 |
| SupplierB | 55,013,252.12 | 18.16 |
| SupplierC | 42,412,004.40 | 14.01 |
| SupplierD | 14,580,169.12 | 4.81 |
| SupplierE | 14,299,086.14 | 4.72 |
| Subtotal | 183,599,888.29 | 60.62 |
OtherremarksNoneOtherremarks?Applicable?NotApplicable
9.Otherreceivables
(1)Details?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
| Interestreceivable | ||
| Dividendreceivable | ||
| Otherreceivables | 477,936,663.36 | 448,538,089.70 |
| Total | 477,936,663.36 | 448,538,089.70 |
Otherremarks?Applicable?NotApplicable
/
Interestreceivable
(1)Details?Applicable?NotApplicable
(2)Significantoverdueinterest?Applicable?NotApplicable
(3)Provisionforbaddebts?Applicable?NotApplicableProvisionforbaddebtsmadeonanindividualbasis?Applicable?NotApplicableExplanationofProvisionforbaddebtsmadeonanindividualbasis?Applicable?NotApplicableProvisionforbaddebtsmadeonacollectivebasis?Applicable?NotApplicable
(4)Provisionforbaddebtsbasedonthegeneralmodelofexpectedcreditlosses?Applicable?NotApplicableDivisionbasisforstagesandproportionsofprovisionforbaddebtsNoneReasonsforsignificantchangesincarryingamountofinterestreceivableinthecurrentperiod?Applicable?NotApplicable
(5)Changesinprovisionforbaddebts?Applicable?NotApplicableSignificantprovisionscollectedorreversed?Applicable?NotApplicableOtherremarksNone
(6)Interestreceivableactuallywrittenoffinthecurrentperiod?Applicable?NotApplicableSignificantinterestreceivablewrittenoffinthecurrentperiod?Applicable?NotApplicableRemarksoninterestreceivablewrittenoff?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
/
Dividendreceivable
(7)Dividendreceivable?Applicable?NotApplicable
(8)Significantbalancewithageoveroneyear?Applicable?NotApplicable
(9)Provisionforbaddebts?Applicable?NotApplicableProvisionforbaddebtsmadeonanindividualbasis?Applicable?NotApplicableExplanationofProvisionforbaddebtsmadeonanindividualbasis?Applicable?NotApplicableProvisionforbaddebtsmadeonacollectivebasis?Applicable?NotApplicable
(10)Provisionforbaddebtsbasedonthegeneralmodelofexpectedcreditlosses?Applicable?NotApplicableDivisionbasisforstagesandproportionsofprovisionforbaddebtsNoneReasonsforsignificantchangesincarryingamountofdividendreceivableinthecurrentperiod?Applicable?NotApplicable
(11)Changesinprovisionforbaddebts?Applicable?NotApplicableSignificantprovisionscollectedorreversed?Applicable?NotApplicableOtherremarksNone
(12)Dividendreceivableactuallywrittenoffinthecurrentperiod?Applicable?NotApplicableSignificantdividendreceivablewrittenoffinthecurrentperiod?Applicable?NotApplicableRemarksondividendreceivablewrittenoff?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
/
Otherreceivables
(13)Ageanalysis?Applicable?NotApplicable
| Ages | Closingbookbalance | BookbalanceonDecember31,2023 |
| Within1year | 427,732,496.97 | 433,167,493.60 |
| 1-2years | 39,594,276.02 | 25,656,040.74 |
| 2-3years | 19,843,138.66 | 2,380,801.36 |
| 3-4years | 1,319,843.91 | 57,701.30 |
| 4-5years | 57,701.30 | 167,987.89 |
| Over5years | 4,998,621.41 | 4,830,633.52 |
| Total | 493,546,078.27 | 466,260,658.41 |
(14)Otherreceivablescategorizedbynature?Applicable?NotApplicable
| Natureofreceivables | Closingbookbalance | BookbalanceonDecember31,2023 |
| Pettycash | 9,273,017.62 | 10,627,234.05 |
| Reservedfundofmedicarepayment | 285,327,178.58 | 227,562,930.45 |
| Securitydeposits | 169,105,778.02 | 153,343,463.92 |
| others | 29,840,104.05 | 74,727,029.99 |
| Total | 493,546,078.27 | 466,260,658.41 |
(15)Changesinprovisionforbaddebts?Applicable?NotApplicable
| Items | Stage1 | Stage2 | Stage3 | Total |
| 12?monthexpectedcreditlosses | Lifetimeexpectedcreditlosses(creditnotimpaired) | Lifetimeexpectedcreditlosses(creditimpaired) | ||
| Openingbalance | 9,748,866.51 | 2,565,604.07 | 5,408,098.13 | 17,722,568.71 |
| Openingbalanceinthecurrentperiod | —— | —— | —— | |
| --Transferredtostage2 | -382,256.49 | 382,256.49 | ||
| --Transferredtostage3 | -116,831.54 | 116,831.54 | ||
| Provisionmadeinthecurrentperiod | -178,796.46 | -2,066,516.04 | 137,559.05 | -2,107,753.45 |
| Provisiontransferredbybusinesscombination | ||||
| Provisionwrittenoffinthecurrentperiod | -5,400.35 | -5,400.35 | ||
| Closingbalance | 9,187,813.56 | 764,512.98 | 5,657,088.37 | 15,609,414.91 |
Divisionbasisforthreestages:
Stage1iswherecreditriskofotherreceivableshasnotincreasedsignificantlysinceinitialrecognition.Stage2iswherecreditriskofotherreceivableshasincreasedsignificantlysinceinitialrecognition,but
/
suchreceivablesarenotconsideredcredit-impaired.Stage3iswhereotherreceivablesareconsideredcredit-impairedsinceinitialrecognition.
| Items | Stage1 | Stage2 | Stage3 | Total |
| Provisionproportion(%) | 2.15 | 1.93 | 21.58 | 3.16 |
Reasonsforsignificantchangesincarryingamountofotherreceivablesinthecurrentperiod?Applicable?NotApplicableDeterminationbasisforprovisionforimpairmentmadeinthecurrentperiodandwhethercreditriskhasincreasedsignificantly?Applicable?NotApplicable
(16)Changesinprovisionforbaddebts?Applicable?NotApplicableSignificantprovisionscollectedorreversed?Applicable?NotApplicableOtherremarksNone
(17)Otherreceivablesactuallywrittenoffinthecurrentperiod?Applicable?NotApplicableSignificantotherreceivableswrittenoffinthecurrentperiod?Applicable?NotApplicableRemarksonotherreceivableswrittenoff?Applicable?NotApplicable
(18)Detailsofthetop5debtorswithlargestbalances?Applicable?NotApplicable
| Debtors | Natureofreceivables | Bookbalance | Ages | Proportiontothetotalbalanceofotherreceivables(%) | Provisionforbaddebts |
| WuhanMedicalInsuranceCenter | Medicalinsurancereserves | 63,956,995.82 | Within1year | 12.96 | |
| NanjingSocialInsuranceManagementCenter | Medicalinsurancereserves | 15,756,943.84 | Within1year | 3.19 | |
| ChangshaMedicalSecurityAffairsCenter | Medicalinsurancereserves | 14,257,303.79 | Within1year | 2.89 | |
| NanchangHigh-TechIndustrialDevelopmentZoneSocialInsuranceServiceCenter | Medicalinsurancereserves | 7,745,493.75 | Within1year | 1.57 | |
| SuzhouCityHealthcareSecurityFundManagement | Medicalinsurancereserves | 6,704,228.20 | Within1year | 1.36 |
/
| Debtors | Natureofreceivables | Bookbalance | Ages | Proportiontothetotalbalanceofotherreceivables(%) | Provisionforbaddebts |
| Center | |||||
| Subtotal | 108,420,965.40 | 21.97 |
(19)Otherreceivablesrelatedtothecentralizedfundmanagement?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
10.Inventories
(1)Details?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 | ||||
| Bookbalance | Provisionforwrite-down/impairment | Carryingamount | Bookbalance | Provisionforwrite-down/impairment | Carryingamount | |
| Goodsonhand | 4,489,561,883.44 | 24,015,536.24 | 4,465,546,347.20 | 3,728,652,379.58 | 19,185,978.09 | 3,709,466,401.49 |
| Low-valueconsumables | 21,092,455.66 | 21,092,455.66 | 21,823,998.08 | 21,823,998.08 | ||
| Rawmaterials | 30,020,850.86 | 30,020,850.86 | 58,267,454.66 | 58,267,454.66 | ||
| Workinprocess | 7,047,361.84 | 7,047,361.84 | 12,762,808.19 | 12,762,808.19 | ||
| Packages | 4,395,236.60 | 4,395,236.60 | 5,642,998.44 | 5,642,998.44 | ||
| Coststofulfillacontract | ||||||
| Total | 4,552,117,788.40 | 24,015,536.24 | 4,528,102,252.16 | 3,827,149,638.95 | 19,185,978.09 | 3,807,963,660.86 |
(2)Dataresourcesrecognizedasinventories?Applicable?NotApplicable
(3)Provisionforinventorywrite-down/coststofulfillacontract?Applicable?NotApplicable
| Items | Openingbalance | Increase | Decrease | Closingbalance | ||
| Accrual | Businesscombination | Reversalorwrite-off | Others | |||
| Goodsonhand | 19,185,978.09 | 83,569,695.03 | 62,393.33 | 78,802,530.21 | 24,015,536.24 | |
| Total | 19,185,978.09 | 83,569,695.03 | 62,393.33 | 78,802,530.21 | 24,015,536.24 | |
Reasonsforthereversalorwrite-offofprovisionforinventorywrite-down?Applicable?NotApplicableInventorieswithprovisionforinventorywrite-downmadeinprecedingperiodweresoldinthecurrentperiod.Inventorieswithprovisionmadeonacollectivebasis?Applicable?NotApplicable
/
Determinationbasisofinventorieswithprovisionmadeonacollectivebasis?Applicable?NotApplicable
(4)Closingcapitalizedamountofborrowingcostandcalculationcriteriaandbasisofcapitalizedamount?Applicable?NotApplicable
(5)Coststofulfillacontract?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
11.Assetsheldforsale?Applicable?NotApplicable
12.Non-currentassetsduewithinoneyear?Applicable?NotApplicableDebtinvestmentsduewithinoneyear?Applicable?NotApplicableOtherdebtinvestmentsduewithinoneyear?Applicable?NotApplicableOtherremarksonnon-currentassetsduewithinoneyearNone
13.Othercurrentassets?Applicable?NotApplicable
| Items | Closingbalance | Openingbalance |
| Bookbalance | Bookbalance | |
| AmortizedHousingrentaltax | 37,164,102.75 | 49,206,209.68 |
| With-holdingsonVATofdeductingandcertificating | 314,697,941.61 | 308,317,783.51 |
| Bondsinvestment(duewithinoneyear) | 20,515,794.52 | |
| Others | 35,346,721.72 | 26,600,349.65 |
| Total | 407,724,560.60 | 384,124,342.84 |
OtherremarksNone
14.Debtinvestments
(1)Details?Applicable?NotApplicable
| Items | Closingbalance | Openingbalance |
/
| Bookbalance | Provisionforimpairment | Carryingamount | Bookbalance | Provisionforimpairment | Carryingamount | |
| CertificateofdepositofAgriculturalBankofChinaLimited | 53,013,888.89 | 53,013,888.89 | 51,438,055.56 | 51,438,055.56 | ||
| CertificateofdepositofIndustrialandCommercialBankofChinaLimited | 53,013,888.89 | 53,013,888.89 | 51,438,055.56 | 51,438,055.56 | ||
| CertificateofdepositofAgriculturalBankofChinaLimited | 52,867,500.00 | 52,867,500.00 | 51,291,666.66 | 51,291,666.66 | ||
| CertificateofdepositofIndustrialBankCo.,Ltd. | 30,346,191.78 | 30,346,191.78 | ||||
| Total | 189,241,469.56 | 189,241,469.56 | 154,167,777.78 | 154,167,777.78 |
Changesonprovisionforimpairmentofdebtinvestments?Applicable?NotApplicable
(2)Significantdebtinvestmentsatthebalancesheetdate?Applicable?NotApplicable
(3)Provisionforimpairmentofdebtinvestments?Applicable?NotApplicableDivisionbasisforstagesandproportionsofprovisionforbaddebtsNoneReasonsforsignificantchangesincarryingamountofdebtinvestmentsinthecurrentperiod?Applicable?NotApplicableDeterminationbasisforprovisionforimpairmentmadeinthecurrentperiodandwhethercreditriskhasincreasedsignificantly?Applicable?NotApplicable
(4)Debtinvestmentsactuallywrittenoffinthecurrentperiod?Applicable?NotApplicableSignificantdebtinvestmentswrittenoffinthecurrentperiod?Applicable?NotApplicableRemarksondebtinvestmentswrittenoff?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
15.Otherdebtinvestments
(1)Details?Applicable?NotApplicable
/
Changesonprovisionforcreditimpairmentofotherdebtinvestments?Applicable?NotApplicable
(2)Significantotherdebtinvestmentsatthebalancesheetdate?Applicable?NotApplicable
(3)Provisionforcreditimpairmentofotherdebtinvestments?Applicable?NotApplicableDivisionbasisforstagesandproportionsofprovisionforbaddebtsNoneReasonsforsignificantchangesincarryingamountofotherdebtinvestmentsinthecurrentperiod?Applicable?NotApplicableDeterminationbasisforprovisionforimpairmentmadeinthecurrentperiodandwhethercreditriskhasincreasedsignificantly?Applicable?NotApplicable
(4)Otherdebtinvestmentsactuallywrittenoffinthecurrentperiod?Applicable?NotApplicableSignificantotherdebtinvestmentswrittenoffinthecurrentperiod?Applicable?NotApplicableRemarksonotherdebtinvestmentswrittenoff?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
16.Long-termreceivables
(1)Details?Applicable?NotApplicable
(2)Detailsoncategoriesofprovisionforbaddebts?Applicable?NotApplicableProvisionforbaddebtsmadeonanindividualbasis?Applicable?NotApplicableExplanationofProvisionforbaddebtsmadeonanindividualbasis?Applicable?NotApplicableProvisionforbaddebtsmadeonacollectivebasis?Applicable?NotApplicable
(3)Provisionforcreditimpairmentoflong-termreceivables
/
?Applicable?NotApplicableDivisionbasisforstagesandproportionsofprovisionforbaddebtsNoneReasonsforsignificantchangesincarryingamountoflong-termreceivablesinthecurrentperiod?Applicable?NotApplicableDeterminationbasisforprovisionforimpairmentmadeinthecurrentperiodandwhethercreditriskhasincreasedsignificantly?Applicable?NotApplicable
(4)Changesinprovisionforbaddebts?Applicable?NotApplicableSignificantprovisionscollectedorreversed?Applicable?NotApplicableOtherremarksNone
(5)Long-termreceivablesactuallywrittenoffinthecurrentperiod?Applicable?NotApplicableSignificantlong-termreceivableswrittenoffinthecurrentperiod?Applicable?NotApplicableRemarksonlong-termreceivableswrittenoff?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
17.Long-termequityinvestments
(1)Details?Applicable?NotApplicable
| Investees | Openingbalance | Increase/Decrease | |||
| Investmentsincreased | Investmentsdecreased | Investmentincomerecognizedunderequitymethod | Adjustmentinothercomprehensiveincome | ||
| Jointventures | |||||
| TaizhouYifengBaixingrenPharmacyChainCo.,Ltd.(the“TaizhouBaixingren) | 5,565,690.31 | 1,710,471.38 | -901.40 | ||
| Total | 5,565,690.31 | 1,710,471.38 | -901.40 | ||
(Continued)
/
| Investees | Increase/Decrease | Closingbalance | Closingbalanceofprovisionforimpairment | |||
| Changesinotherequity | Cashdividend/Profitdeclaredfordistribution | Provisionforimpairment | Others | |||
| Jointventures | ||||||
| TaizhouBaixingren | 3,854,317.53 | |||||
| Total | 3,854,317.53 | |||||
(2)Impairmenttestonlong-termequityinvestments?Applicable?NotApplicableOtherremarksNone
18.Otherequityinstrumentinvestments
(1)Details?Applicable?NotApplicable
| Items | Openingbalance | Increase/Decrease | |||
| Investmentsincreased | Investmentsdecreased | Gainsorlossesincludedintoothercomprehensiveincomeinthecurrentperiod | Others | ||
| JiuzhitangCo.,Ltd. | 432,225,200.00 | -92,253,600.00 | |||
| Total | 432,225,200.00 | -92,253,600.00 | |||
(Continued)
| Items | Closingbalance | Dividendincomerecognizedinthecurrentperiod | Accumulatedgainsorlossesincludedintoothercomprehensiveincomeattheendoftheperiod |
| JiuzhitangCo.,Ltd. | 339,971,600.00 | 17,084,000.00 | -63,697,987.35 |
| Total | 339,971,600.00 | 17,084,000.00 | -63,697,987.35 |
ReasonsforequityinstrumentinvestmentsdesignatedasatfairvaluethroughothercomprehensiveincomeAttheendoftheperiod,theCompanyheld42,710,000sharesofJiuzhitangCo.,Ltd.,withaclosingpriceof7.19yuanpershare.Astheitemisanon-tradingequityinstrument,itisdesignatedasanequityinstrumentmeasuredatfairvaluethroughothercomprehensiveincome.
(2)Otherequityinstrumentinvestmentsderecognizedinthecurrentperiod?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
19.Othernon-currentfinancialassets?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
/
| Items | Closingbalance | December31,2023 |
| Financialassetsclassifiedasatfairvaluethroughprofitorloss | 1,010,000.00 | 1,010,000.00 |
| Including:Equityinstrumentinvestments | 1,010,000.00 | 1,010,000.00 |
| Total | 1,010,000.00 | 1,010,000.00 |
Otherremarks?Applicable?NotApplicable
20.InvestmentpropertyMeasurementModelofInvestmentproperty?Applicable?NotApplicable
21.Fixedassets
(1)Details?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
| Fixedassets | 1,572,779,628.81 | 1,524,048,536.46 |
| Disposaloffixedassets | ||
| Total | 1,572,779,628.81 | 1,524,048,536.46 |
Otherremarks?Applicable?NotApplicableFixedassets
(1)Details?Applicable?NotApplicable
| Items | Buildingsandstructures | Machinery | Electronicequipment | Officeequipment | Transportfacilities | Total |
| Cost | ||||||
| Openingbalance | 1,290,550,629.87 | 84,178,099.30 | 484,624,819.44 | 432,279,512.25 | 21,435,430.65 | 2,313,068,491.51 |
| Increase | 74,170,311.75 | 16,431,750.70 | 139,874,961.94 | 120,376,538.92 | 1,082,688.97 | 351,936,252.28 |
| 1)Acquisition | 7,970,638.87 | 3,697,662.08 | 136,191,834.29 | 120,265,034.50 | 1,082,688.97 | 269,207,858.71 |
| 2)Transferredinfromconstructioninprogress | 66,199,672.88 | 12,734,088.62 | 3,683,127.65 | 111,504.42 | 82,728,393.57 | |
| 3)Businesscombination | ||||||
| Decrease | 600,856.83 | 2,818,908.29 | 63,631,481.06 | 37,110,747.08 | 1,945,738.05 | 106,107,731.31 |
| 1)Disposal/Scrapping | 600,856.83 | 2,818,908.29 | 63,631,481.06 | 37,110,747.08 | 1,945,738.05 | 106,107,731.31 |
| Closingbalance | 1,364,120,084.79 | 97,790,941.71 | 560,868,300.32 | 515,545,304.09 | 20,572,381.57 | 2,558,897,012.48 |
| Accumulateddepreciation | ||||||
| Openingbalance | 195,096,706.90 | 28,274,818.86 | 310,151,139.17 | 244,602,976.46 | 10,894,313.66 | 789,019,955.05 |
| Increase | 66,225,074.74 | 6,542,510.27 | 98,970,991.35 | 66,108,583.28 | 1,708,210.27 | 239,555,369.91 |
/
| Items | Buildingsandstructures | Machinery | Electronicequipment | Officeequipment | Transportfacilities | Total |
| 1)Accrual | 66,225,074.74 | 6,542,510.27 | 98,970,991.35 | 66,108,583.28 | 1,708,210.27 | 239,555,369.91 |
| Decrease | 326,324.24 | 2,297,039.41 | 23,535,803.45 | 14,728,617.40 | 1,570,156.79 | 42,457,941.29 |
| 1)Disposal/Scrapping | 326,324.24 | 2,297,039.41 | 23,535,803.45 | 14,728,617.40 | 1,570,156.79 | 42,457,941.29 |
| Closingbalance | 260,995,457.40 | 32,520,289.72 | 385,586,327.07 | 295,982,942.34 | 11,032,367.14 | 986,117,383.67 |
| Carryingamount | ||||||
| Closingbalance | 1,103,124,627.39 | 65,270,651.99 | 175,281,973.25 | 219,562,361.75 | 9,540,014.43 | 1,572,779,628.81 |
| Openingbalance | 1,095,453,922.97 | 55,903,280.44 | 174,473,680.27 | 187,676,535.79 | 10,541,116.99 | 1,524,048,536.46 |
(2)Fixedassetstemporarilyidle?Applicable?NotApplicable
(3)Fixedassetsleasedoutunderoperatingleases?Applicable?NotApplicable
| Items | Carryingamount |
| Buildingsandstructures | 6,037,117.95 |
| Subtotal | 6,037,117.95 |
(4)Fixedassetswithcertificateoftitlesbeingunsettled?Applicable?NotApplicable
| Items | Carryingamount | Reasonsforunsettlement |
| JiangxiYifengPharmaceuticalFactory | 87,803,106.96 | Inprogress |
(5)Impairmenttestonfixedassets?Applicable?NotApplicableOtherremarks?Applicable?NotApplicableDisposaloffixedassets?Applicable?NotApplicable
22.Constructioninprogress
(1)Details?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
| Constructioninprogress | 228,582,939.93 | 175,121,866.79 |
| Constructionmaterials | ||
| Total | 228,582,939.93 | 175,121,866.79 |
Otherremarks?Applicable?NotApplicable
/
Constructioninprogress
(1)Details?Applicable?NotApplicable
| Projects | Closingbalance | December31,2023 | ||||
| Bookbalance | Provisionforimpairment | Carryingamount | Bookbalance | Provisionforimpairment | Carryingamount | |
| YifengHealthCity | 7,388,553.37 | 7,388,553.37 | 7,269,387.33 | 7,269,387.33 | ||
| JiangsuYifengMedicineproductsortingandprocessingproject(PhaseII) | 216,616.43 | 216,616.43 | 974,245.05 | 974,245.05 | ||
| SecondheadquartersprojectofYifengPharmacy | 44,084,317.64 | 44,084,317.64 | 19,680,975.01 | 19,680,975.01 | ||
| HubeiYifengMedicineproductsortingandprocessingcenter(PhaseI) | 176,893,452.49 | 176,893,452.49 | 126,910,848.73 | 126,910,848.73 | ||
| ExpansionprojectofHebeiXinxingMedicinewarehouse | 19,083,829.78 | 19,083,829.78 | ||||
| Otherpiecemealprojects | 1,202,580.89 | 1,202,580.89 | ||||
| Total | 228,582,939.93 | 228,582,939.93 | 175,121,866.79 | 175,121,866.79 | ||
(2)Changesinsignificantprojects?Applicable?NotApplicable
| Projects | Budgets | Openingbalance | Increase | Transferredtofixedassets | Transferredtointangibleassets | Closingbalance |
| HubeiYifengMedicineproductsortingandprocessingcenter(PhaseI) | 350,000,000.00 | 126,910,848.73 | 49,982,603.76 | 176,893,452.49 | ||
| Subtotal | 350,000,000.00 | 126,910,848.73 | 49,982,603.76 | 176,893,452.49 |
(Continued)
| Projects | Accumulatedinputtobudget(%) | Completionpercentage(%) | Accumulatedamountofborrowingcostcapitalization | Amountofborrowingcostcapitalizationinthecurrentperiod | Annualcapitalizationrate(%) | Fundsource |
| HubeiYifengMedicineproductsortingandprocessingcenter(PhaseI) | 50.54 | 60.00 | Raisedfundsandself-ownedfunds | |||
| Subtotal | 50.54 | 60.00 |
(3)Changesinprovisionforimpairment?Applicable?NotApplicable
(4)Impairmenttestonconstructioninprogress?Applicable?NotApplicableOtherremarks?Applicable?NotApplicableConstructionmaterials
(5)Details
/
?Applicable?NotApplicable
23.Productivebiologicalassets
(1)Productivebiologicalassetsmeasuredatcost?Applicable?NotApplicable
(2)Impairmenttestonproductivebiologicalassetsmeasuredatcost?Applicable?NotApplicable
(3)Productivebiologicalassetsbasedonthefairvalue?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
24.Oilandgasassets
(1)Details?Applicable?NotApplicable
(2)Impairmenttestonoilandgasassets?Applicable?NotApplicableOtherremarksNone
25.Right-of-useassets
(1)Details?Applicable?NotApplicable
| Items | Buildingsandstructures | Total |
| Cost | ||
| Openingbalance | 6,635,103,496.79 | 6,635,103,496.79 |
| Increase | 2,260,426,441.75 | 2,260,426,441.75 |
| 1)Leasedin | 2,257,001,182.58 | 2,257,001,182.58 |
| 2)Businesscombination | 3,425,259.17 | 3,425,259.17 |
| Decrease | 2,230,379,747.55 | 2,230,379,747.55 |
| 1)Terminationinadvanceoruponmaturity | 2,230,379,747.55 | 2,230,379,747.55 |
| Closingbalance | 6,665,150,190.99 | 6,665,150,190.99 |
| Accumulateddepreciation | ||
| Openingbalance | 2,669,219,070.97 | 2,669,219,070.97 |
| Increase | 1,613,704,068.64 | 1,613,704,068.64 |
| 1)Accrual | 1,613,693,829.22 | 1,613,693,829.22 |
/
| Items | Buildingsandstructures | Total |
| 2)Businesscombination | 10,239.42 | 10,239.42 |
| Decrease | 1,495,438,660.66 | 1,495,438,660.66 |
| 1)Terminationinadvanceoruponmaturity | 1,495,438,660.66 | 1,495,438,660.66 |
| Closingbalance | 2,787,484,478.95 | 2,787,484,478.95 |
| Carryingamount | ||
| Closingbalance | 3,877,665,712.04 | 3,877,665,712.04 |
| Openingbalance | 3,965,884,425.82 | 3,965,884,425.82 |
(2)Impairmenttestonright-of-useassets?Applicable?NotApplicableOtherremarksNone
26.Intangibleassets
(1)Details?Applicable?NotApplicable
| Items | Landuseright | Software | Trademark | DrugRetailingLicense | Total |
| Cost | |||||
| Openingbalance | 373,504,822.85 | 238,482,807.15 | 2,718,808.78 | 5,526,653.13 | 620,233,091.91 |
| Increase | 5,345,127.80 | 39,709,567.84 | 471,698.11 | 45,526,393.75 | |
| 1)Acquisition | 5,345,127.80 | 5,588,706.24 | 471,698.11 | 11,405,532.15 | |
| 2)Internalresearchanddevelopment | 34,120,861.60 | 34,120,861.60 | |||
| 3)Businesscombination | |||||
| Decrease | 2,613,538.34 | 2,613,538.34 | |||
| 1)Disposal | 2,613,538.34 | 2,613,538.34 | |||
| Closingbalance | 378,849,950.65 | 275,578,836.65 | 3,190,506.89 | 5,526,653.13 | 663,145,947.32 |
| Accumulatedamortization | |||||
| Openingbalance | 55,859,388.24 | 89,048,232.29 | 1,686,743.65 | 2,666,228.85 | 149,260,593.03 |
| Increase | 9,101,319.89 | 22,216,394.28 | 157,406.46 | 550,187.44 | 32,025,308.07 |
| 1)Accrual | 9,101,319.89 | 22,216,394.28 | 157,406.46 | 550,187.44 | 32,025,308.07 |
| Decrease | 1,232,558.80 | 1,232,558.80 | |||
| 1)Disposal | 1,232,558.80 | 1,232,558.80 | |||
| Closingbalance | 64,960,708.13 | 110,032,067.77 | 1,844,150.11 | 3,216,416.29 | 180,053,342.30 |
| Carryingamount | |||||
| Closingbalance | 313,889,242.52 | 165,546,768.88 | 1,346,356.78 | 2,310,236.84 | 483,092,605.02 |
/
| Items | Landuseright | Software | Trademark | DrugRetailingLicense | Total |
| Openingbalance | 317,645,434.61 | 149,434,574.86 | 1,032,065.13 | 2,860,424.28 | 470,972,498.88 |
Atthebalancesheetdate,intangibleassetsformedthroughinternalresearchanddevelopmentaccountfor30.24%oftotalclosingbalanceofintangibleassets.
(2)Dataresourcesrecognizedasintangibleassets?Applicable?NotApplicable
(3)Landuserightwithcertificateoftitlesbeingunsettled?Applicable?NotApplicable
(4)Impairmenttestonintangibleassets?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
27.Goodwill
(1)Details?Applicable?NotApplicable
| Investeesoreventsresultingingoodwill | Openingbalance | Increaseduetobusinesscombinationinthecurrentperiod | Decreaseduetodisposal | Closingbalance |
| XinxingPharmacy | 1,067,133,311.81 | 1,067,133,311.81 | ||
| BusinessandassetsofWu’anKangjianPharmacy | 34,709,571.04 | 34,709,571.04 | ||
| BusinessandassetsofXintaiYizePharmacy | 7,100,799.00 | 7,100,799.00 | ||
| BusinessandassetsofSunshineHerbalPharmacy | 5,337,759.80 | 5,337,759.80 | ||
| BusinessandassetsofCangzhouYihetangPharmacy | 1,431,138.00 | 1,431,138.00 | ||
| BusinessandassetsofShijiazhuangCihaoPharmacy | 1,371,076.00 | 1,371,076.00 | ||
| BusinessandassetsofKangyide | 1,297,370.00 | 1,297,370.00 | ||
| BusinessandassetsofShijiazhuangZhongjingPharmacy | 854,870.00 | 854,870.00 | ||
| BusinessandassetsofTangshanYuxiangyuan | 564,475.00 | 564,475.00 | ||
| BusinessandassetsofJishikangPharmacy | 546,662.00 | 546,662.00 | ||
| BusinessandassetsofSanheHerentang | 29,049,874.00 | 29,049,874.00 | ||
| BusinessandassetsofHuabeiWeishikangPharmacy | 3,784,890.00 | 3,784,890.00 | ||
| BusinessandassetsofHuaweiPharmacy | 556,981.00 | 556,981.00 | ||
| HengshuiHongdaHengkangPharmacy | 37,557,835.00 | 37,557,835.00 | ||
| BusinessandassetsofHandanDeyitangPharmacy | 29,163,341.00 | 29,163,341.00 | ||
| BusinessandassetsofHebei | 764,438.00 | 764,438.00 |
/
| Investeesoreventsresultingingoodwill | Openingbalance | Increaseduetobusinesscombinationinthecurrentperiod | Decreaseduetodisposal | Closingbalance |
| KangletangPharmacy | ||||
| HengshuiZhongkangWeiminPharmacyCo.,Ltd. | 90,299,576.99 | 90,299,576.99 | ||
| CangzhouXinxingWuzhouPharmacyChainCo.,Ltd. | 22,200,000.00 | 22,200,000.00 | ||
| CangzhouXinxingJinyangguangPharmacyChainCo.,Ltd. | 26,910,000.00 | 26,910,000.00 | ||
| XinxingHebei | 4,997,579.01 | 4,997,579.01 | ||
| TianjinXianhe | 7,900,000.00 | 7,900,000.00 | ||
| HandanXinxing | 22,950,000.00 | 22,950,000.00 | ||
| TangshanXinxingDeshuntang | 107,100,000.00 | 107,100,000.00 | ||
| JiuzhouMedicineandJiuzhouPharmacy | 158,100,000.00 | 158,100,000.00 | ||
| ShanghaiShanghong | 125,494,951.53 | 125,494,951.53 | ||
| JiangsuShimin | 125,079,027.86 | 125,079,027.86 | ||
| JiangxiTianshun | 39,000,000.00 | 39,000,000.00 | ||
| XinyuBaihuikang | 28,800,000.00 | 28,800,000.00 | ||
| TaizhouYifeng | 29,090,846.10 | 29,090,846.10 | ||
| BusinessandassetsofXinghuaYishantang | 6,500,000.00 | 6,500,000.00 | ||
| BusinessandassetsofTaizhouBaixingren | 53,063,086.35 | 53,063,086.35 | ||
| BusinessandassetsofJiangsuYishuMedicine | 1,500,000.00 | 1,500,000.00 | ||
| RudongYifeng | 24,058,466.53 | 24,058,466.53 | ||
| BusinessandassetsofHunanXinbaikangMedicineChainCo.,Ltd. | 55,000,000.00 | 55,000,000.00 | ||
| BusinessandassetsofLiuyangTianshunPharmacy | 34,761,350.00 | 34,761,350.00 | ||
| BusinessandassetsofHengyangDazhongHealthPharmacy | 30,000,000.00 | 30,000,000.00 | ||
| BusinessandassetsofQidongGuodaHealthPharmacy | 14,351,615.00 | 14,351,615.00 | ||
| Guangshengtang | 30,410,738.87 | 30,410,738.87 | ||
| BusinessandassetsofJingzhouShashiXinlianxinPharmacy | 8,506,023.00 | 8,506,023.00 | ||
| BusinessandassetsofHubeiZhongjieMedicine | 7,430,000.00 | 7,430,000.00 | ||
| BusinessandassetsofJianliTongzePharmacy | 8,600,000.00 | 8,600,000.00 | ||
| BusinessandassetsofChangshaQingyuantangPharmacy | 11,252,750.00 | 11,252,750.00 | ||
| BusinessandassetsofJiangxiCaisen | 21,568,983.00 | 21,568,983.00 | ||
| BusinessandassetsofNanxianShijikangPharmacy | 2,500,000.00 | 2,500,000.00 | ||
| BusinessandassetsofWuhanHoudetang | 13,826,081.00 | 13,826,081.00 | ||
| WuhanLongtai | 65,216,667.52 | 65,216,667.52 | ||
| ShaoguanXiangqin | 98,811,598.79 | 98,811,598.79 |
/
| Investeesoreventsresultingingoodwill | Openingbalance | Increaseduetobusinesscombinationinthecurrentperiod | Decreaseduetodisposal | Closingbalance |
| YiliKangxin | 66,966,216.62 | 66,966,216.62 | ||
| BusinessandassetsofNingxiangJiuzhitang | 27,390,000.00 | 27,390,000.00 | ||
| BusinessandassetsofShuangfengYongjitang | 3,660,000.00 | 3,660,000.00 | ||
| BusinessandassetsofLichuanTong’an | 18,800,000.00 | 18,800,000.00 | ||
| BusinessandassetsofXiaoganTiansheng | 12,380,000.00 | 12,380,000.00 | ||
| BusinessandassetsofGuangfutang | 25,722,500.50 | 25,722,500.50 | ||
| YangpuYifeng | 51,772,748.23 | 51,772,748.23 | ||
| PutuoYifeng | 15,199,355.63 | 15,199,355.63 | ||
| SuzhouYuehai | 72,409,550.90 | 72,409,550.90 | ||
| BusinessandassetsofWuzhouPharmacy | 23,914,105.00 | 23,914,105.00 | ||
| ShanghaiBuyi | 24,592,341.70 | 24,592,341.70 | ||
| HubeiYifengPukangPharmacyChainCo.,Ltd. | 33,477,084.46 | 33,477,084.46 | ||
| BusinessandassetsofNantongZhongzhichenPharmacy | 19,463,435.00 | 19,463,435.00 | ||
| BusinessandassetsofSuqianDashengMedicine | 7,988,130.00 | 7,988,130.00 | ||
| BusinessandassetsofGuangyunKangshengPharmacy | 12,182,540.00 | 12,182,540.00 | ||
| BusinessandassetsofSuqianJiujiuMedicineSupermarket | 46,109,939.00 | 46,109,939.00 | ||
| BusinessandassetsofSuqianJiaheMedicine | 39,799,860.00 | 39,799,860.00 | ||
| BusinessandassetsofKaixinPharmacy | 24,466,578.00 | 24,466,578.00 | ||
| Jiankangren | 60,518,524.51 | 60,518,524.51 | ||
| Baicaotang | 51,523,843.40 | 51,523,843.40 | ||
| Huai’anJisheng | 39,466,506.83 | 39,466,506.83 | ||
| Longshuntang | 26,330,311.31 | 26,330,311.31 | ||
| NanjingYifeng | 29,599,720.61 | 29,599,720.61 | ||
| YueyangYifeng | 9,667,622.58 | 9,667,622.58 | ||
| Jiyangtang | 11,056,673.83 | 11,056,673.83 | ||
| SihongShidaiMedicine | 37,390,726.94 | 37,390,726.94 | ||
| BusinessandassetsofSihongYifengJizhouPharmacy | 8,500,000.00 | 8,500,000.00 | ||
| Aierkang | 30,930,301.86 | 30,930,301.86 | ||
| BusinessandassetsofYueyangHuarongYikangPharmacy | 8,300,000.00 | 8,300,000.00 | ||
| BusinessandassetsofChangshaTailaiSenyantang | 10,150,000.00 | 10,150,000.00 | ||
| XuzhouEnqi | 23,400,000.00 | 23,400,000.00 | ||
| RudongYifengBencao | 39,991,285.36 | 39,991,285.36 |
/
| Investeesoreventsresultingingoodwill | Openingbalance | Increaseduetobusinesscombinationinthecurrentperiod | Decreaseduetodisposal | Closingbalance |
| YuehaiYongxitang | 29,820,868.69 | 29,820,868.69 | ||
| MachengYifeng | 15,549,776.06 | 15,549,776.06 | ||
| YifengLuoshiXiehe | 27,950,000.00 | 27,950,000.00 | ||
| BusinessandassetsofYongzhouDaoxianRenrenkangPharmacy | 2,190,000.00 | 2,190,000.00 | ||
| PingjiangYifeng | 8,437,083.42 | 8,437,083.42 | ||
| BusinessandassetsofZhuzhouZhengxiangPharmacy | 22,380,000.00 | 22,380,000.00 | ||
| BusinessandassetsofHunanSinopharmHoldingsJiajiakangPharmacy | 18,000,000.00 | 18,000,000.00 | ||
| BusinessandassetsofJianhuRenminPharmacyandJianhuYuanshengtangPharmacy | 17,000,000.00 | 17,000,000.00 | ||
| FengxianHengyuan | 31,500,000.00 | 31,500,000.00 | ||
| DongtaiYifengKaixinMedicineCo.,Ltd. | 22,239,000.00 | 22,239,000.00 | ||
| BusinessandassetsofJiangsuWuwuLiminMedicineChainStore | 15,000,000.00 | 15,000,000.00 | ||
| SuzhouYifengYuehaiTong’ankangPharmacyChainCo.,Ltd. | 15,615,853.66 | 15,615,853.66 | ||
| YanchengJinyuan | 37,634,283.13 | 37,634,283.13 | ||
| XuzhouYifeng | 22,985,583.59 | 22,985,583.59 | ||
| BusinessandassetsofSanhuaitang | 7,000,000.00 | 7,000,000.00 | ||
| BusinessandassetsofMiluoTianhengJirengtangPharmacy | 24,880,000.00 | 24,880,000.00 | ||
| BusinessandassetsofZhuzhouShifengShunkangPharmacy | 7,680,000.00 | 7,680,000.00 | ||
| BusinessandassetsofHunanZhongxinPharmacyRetailChainCo.,Ltd. | 13,800,000.00 | 13,800,000.00 | ||
| BusinessandassetsofXiangtanSishitangPharmacyandChunxiaoyuanTraditionalChineseMedicineClinic | 1,500,000.00 | 1,500,000.00 | ||
| BusinessandassetsofHengyangJianyi,KangrentangandShiyitang | 1,700,000.00 | 1,700,000.00 | ||
| BusinessandassetsofLeiyangSiyanjingPharmacyCo.,Ltd. | 37,700,000.00 | 37,700,000.00 | ||
| BusinessandassetsofHunanDehaiPharmacyCo.,Ltd. | 3,660,000.00 | 3,660,000.00 | ||
| JiangxiJianmin | 70,200,000.00 | 70,200,000.00 | ||
| BusinessandassetsofPoyangHuchengHealthKaixinrenPharmacy | 22,800,000.00 | 22,800,000.00 | ||
| BusinessandassetsofYushanBaicaotangPharmacy | 25,000,000.00 | 25,000,000.00 | ||
| ChibiKanghua | 26,378,913.74 | 26,378,913.74 | ||
| XishuiYifeng | 25,845,000.00 | 25,845,000.00 | ||
| WuhanJianghan | 28,352,879.88 | 28,352,879.88 | ||
| YiduYifeng | 11,576,250.00 | 11,576,250.00 | ||
| AnluYifeng | 13,999,970.12 | 13,999,970.12 |
/
| Investeesoreventsresultingingoodwill | Openingbalance | Increaseduetobusinesscombinationinthecurrentperiod | Decreaseduetodisposal | Closingbalance |
| HubeiAierkang | 3,687,486.07 | 3,687,486.07 | ||
| BusinessandassetsofBadongGuoyaobu | 15,300,000.00 | 15,300,000.00 | ||
| BusinessandassetsofHuanggangTongjitangXishuistores | 2,300,000.00 | 2,300,000.00 | ||
| BusinessandassetsofSuizhouHaoyihaoPharmacy | 15,000,000.00 | 15,000,000.00 | ||
| WuhanHaojiankang | 31,071,780.29 | 31,071,780.29 | ||
| BusinessandassetsofSuizhouBaixingPharmacy | 1,500,000.00 | 1,500,000.00 | ||
| BusinessandassetsofHubeiKanghuaPharmacyChainCo.,Ltd. | 1,300,000.00 | 1,300,000.00 | ||
| JiuzhitangMedicine | 102,064,935.48 | 102,064,935.48 | ||
| TangshanXinxingDeshengtang | 101,700,000.00 | 101,700,000.00 | ||
| QinhuangdaoXinxingMinle | 56,700,000.00 | 56,700,000.00 | ||
| HandanXinxingBaixinkang | 22,544,000.00 | 22,544,000.00 | ||
| ShijiazhuangYingqiMedicalService | 1,399,867.03 | 1,399,867.03 | ||
| HandanXinxingHuakang | 47,250,000.00 | 47,250,000.00 | ||
| LangfangXinxingDekunyuan | 24,792,000.00 | 24,792,000.00 | ||
| ChengdeXinxingXinyu | 21,000,000.00 | 21,000,000.00 | ||
| SuzhouXinqunzhongClinic | 4,499,666.86 | 4,499,666.86 | ||
| YichunYifeng | 22,500,000.00 | 22,500,000.00 | ||
| GuangshuiYifengKangji | 7,840,000.00 | 7,840,000.00 | ||
| YingtanYifeng | 18,200,000.00 | 18,200,000.00 | ||
| BusinessandassetsofXingtaiDongdaPharmaceuticalChainCo.,Ltd. | 26,320,000.00 | 26,320,000.00 | ||
| BusinessandassetsofChangzhouRenminBaixingPharmacyCo.,Ltd. | 35,000,000.00 | 35,000,000.00 | ||
| BusinessandassetsofJianglingMiaoyuanPharmacy | 6,880,000.00 | 6,880,000.00 | ||
| BusinessandassetsofHubeiZhonglianPharmacyChainCo.,Ltd. | 20,000,000.00 | 20,000,000.00 | ||
| BusinessandassetsofLongshanLaobaixingXinteyaoHealthPharmacy | 6,000,000.00 | 6,000,000.00 | ||
| PingquanXinxinLimin | 33,885,234.65 | 33,885,234.65 | ||
| WochengXinxingAnkang | 25,650,130.00 | 25,650,130.00 | ||
| BaodingXinxingKangshi | 12,800,000.00 | 12,800,000.00 | ||
| NangongXinxingHuakang | 20,300,000.00 | 20,300,000.00 | ||
| XingtaiXinxingKangze | 16,380,000.00 | 16,380,000.00 | ||
| HandanXinxingKangheng | 14,490,000.00 | 14,490,000.00 | ||
| HandanXinxingShengde | 14,000,000.00 | 14,000,000.00 | ||
| JizeRenkangXinxing | 4,851,000.00 | 4,851,000.00 | ||
| KunshanYifengHuasheng | 11,900,000.00 | 11,900,000.00 |
/
| Investeesoreventsresultingingoodwill | Openingbalance | Increaseduetobusinesscombinationinthecurrentperiod | Decreaseduetodisposal | Closingbalance |
| BusinessandassetsofWuxiShenzhouPharmacy | 11,500,000.00 | 11,500,000.00 | ||
| BusinessandassetsofZengchengYujingStore | 410,000.00 | 410,000.00 | ||
| BusinessandassetsofJingzhouJingkangPharmacy | 2,500,000.00 | 2,500,000.00 | ||
| BusinessandassetsofJingzhouTongyuantang | 3,500,000.00 | 3,500,000.00 | ||
| BusinessandassetsofYiduKangzhijiaPharmacy | 2,800,000.00 | 2,800,000.00 | ||
| BusinessandassetsofShangraoGuangxinMinshengPharmacy | 419,000.00 | 419,000.00 | ||
| BusinessandassetsofWuxiJiuzhouTaibohuayuanStore | 950,000.00 | 950,000.00 | ||
| BusinessandassetsofNantongXinglinPharmacy(SingleStore) | 246,610.00 | 246,610.00 | ||
| BusinessandassetsofMuyangJiukuntangPharmacy(SingleStore) | 238,680.00 | 238,680.00 | ||
| Businessandassetsofthe11thstoreofTianjinZhongjingtangPharmacy | 399,000.00 | 399,000.00 | ||
| Total | 4,612,848,833.49 | 177,219,654.65 | 4,790,068,488.14 |
(2)Provisionforimpairment?Applicable?NotApplicable
| Investeesoreventsresultingingoodwill | Openingbalance | Accrual | Decrease | Closingbalance |
| JiangsuShimin | 15,490,279.02 | 15,490,279.02 | ||
| ShaoguanXiangqin | 2,299,554.25 | 2,299,554.25 | ||
| Longshuntang | 3,336,502.80 | 3,336,502.80 | ||
| Total | 2,299,554.25 | 18,826,781.82 | 21,126,336.07 |
(3)Relatedinformationofassetgroupsorassetgroupportfolioswhichincludegoodwill?Applicable?NotApplicable
| Assetgroupsorassetgroupportfolios | Compositionofassetgroupsorassetgroupportfoliosanditsbasis | Operatingsegmentanditsbasis | Whetherassetgroupsorassetgroupportfoliosareconsistentwiththoseatacquisitiondate/atgoodwillimpairmenttestingdateinpreviousyears |
| Jiyangtang | Operatingnon-currentassets | Hubeiregion | Yes |
| AssetsofHengyangDazhongHealthPharmacy | Operatingnon-currentassets | Hunanregion | Yes |
| AssetsofJianhuRenminPharmacyandJianhuYuanshengtangPharmacy | Operatingnon-currentassets | Jiangsuregion | Yes |
| JinzhouPukang | Operatingnon-currentassets | Hubeiregion | Yes |
| Jiankangren | Operatingnon-currentassets | Jiangsuregion | Yes |
| AssetsofLichuanTong’an | Operatingnon-currentassets | Hubeiregion | Yes |
| PingjiangYifeng | Operatingnon-currentassets | Hunanregion | Yes |
| AssetssofQidongGuodaHealthPharmacy | Operatingnon-currentassets | Hunanregion | Yes |
/
| MachengYifeng | Operatingnon-currentassets | Hubeiregion | Yes |
| AssetgroupsofDongtaiYifeng | Operatingnon-currentassets | Jiangsuregion | No |
| Aierkang | Operatingnon-currentassets | Hubeiregion | Yes |
| AssetsofKaixinPharmacy | Operatingnon-currentassets | Jiangsuregion | Yes |
| AssetsofWuhanHoudetang | Operatingnon-currentassets | Hubeiregion | Yes |
| WuhanLongtai | Operatingnon-currentassets | Hubeiregion | Yes |
| NanjingYifeng | Operatingnon-currentassets | Jiangsuregion | Yes |
| AssetsofXiaoganTiansheng | Operatingnon-currentassets | Hubeiregion | Yes |
| AssetsofSuqianJiujiuMedicineSupermarket | Operatingnon-currentassets | Jiangsuregion | Yes |
| AssetsofGuangfutang | Operatingnon-currentassets | Hubeiregion | Yes |
| AssetsgroupportfoliosofGuangshengtang,JingzhouShashiXinlianxinPharmacy,HubeiZhongjieMedicineandJianliTongzePharmacy | Operatingnon-currentassets | Hubeiregion | No |
| AssetsofHuarongYikangPharmacy | Operatingnon-currentassets | Hunanregion | Yes |
| YangpuYifeng | Operatingnon-currentassets | Shanghairegion | Yes |
| AssetsofLiuyangTianshunPharmacy | Operatingnon-currentassets | Hunanregion | Yes |
| RudongYifengBencao | Operatingnon-currentassets | Jiangsuregion | Yes |
| AssetsofNanxianShijikangPharmacy | Operatingnon-currentassets | Hunanregion | Yes |
| SuzhouYuehaiandXinqunzhongClinic | Operatingnon-currentassets | Jiangsuregion | Yes |
| AssetsofNingxiangJiuzhitang | Operatingnon-currentassets | Hunanregion | Yes |
| AssetsofShuangfengYongjitang | Operatingnon-currentassets | Hunanregion | Yes |
| AssetsofSihongShidaiMedicineandSihongYifengJizhouPharmacy | Operatingnon-currentassets | Jiangsuregion | Yes |
| AssetsofHunanSinopharmHoldingsJiajiakangPharmacy | Operatingnon-currentassets | Hunanregion | Yes |
| AssetsofXinbaikangPharmacy | Operatingnon-currentassets | Hunanregion | Yes |
| AssetgroupportfoliosofTaizhouYifeng,XinghuaYishantang,TaizhouBaixingrenandJiangsuYishuMedicine | Operatingnon-currentassets | Jiangsuregion | Yes |
| YifengLuoshiXieheandYongzhouDaoxianRenrenkangPharmacy | Operatingnon-currentassets | Hunanregion | Yes |
| YueyangYifeng | Operatingnon-currentassets | Hunanregion | Yes |
| AssetsofSuqianJiaheMedicine | Operatingnon-currentassets | Jiangsuregion | Yes |
| AssetsofChangshaQingyuantangPharmacy | Operatingnon-currentassets | Hunanregion | Yes |
| AssetsofSuqianDashengMedicine | Operatingnon-currentassets | Jiangsuregion | Yes |
| AssetsofChangshaTailaiSenyantangPharmacy | Operatingnon-currentassets | Hunanregion | Yes |
/
| JiuzhouMedicineandJiuzhouPharmacy | Operatingnon-currentassets | Jiangsuregion | No |
| AssetsofZhuzhouZhengxiangPharmacy | Operatingnon-currentassets | Hunanregion | Yes |
| ShaoguanXiangqin | Operatingnon-currentassets | Guangdongregion | No |
| Huai’anJisheng | Operatingnon-currentassets | Jiangsuregion | Yes |
| JiangsuShimin | Operatingnon-currentassets | Jiangsuregion | Yes |
| AssetgroupportfoliosofJiangxiTianshunandXinyuBaihuikang | Operatingnon-currentassets | Jiangxiregion | Yes |
| AssetsofGuangyunKangshengPharmacy | Operatingnon-currentassets | Jiangsuregion | Yes |
| RudongYifeng | Operatingnon-currentassets | Jiangsuregion | Yes |
| AssetgroupsofMiluoTianheng | Operatingnon-currentassets | Hunanregion | Yes |
| AssetsofNantongZhongzhichenPharmacy | Operatingnon-currentassets | Jiangsuregion | Yes |
| YuehaiYongxitang | Operatingnon-currentassets | Jiangsuregion | Yes |
| Longshuntang | Operatingnon-currentassets | Shanghairegion | Yes |
| Baicaotang | Operatingnon-currentassets | Jiangsuregion | Yes |
| AssetgroupsofXinkangJianmin | Operatingnon-currentassets | Jiangxiregion | No |
| XuzhouEnqi | Operatingnon-currentassets | Jiangsuregion | Yes |
| AssetgroupsofAnluYifeng | Operatingnon-currentassets | Hubeiregion | No |
| AssetsofJiangxiCaisen | Operatingnon-currentassets | Jiangxiregion | Yes |
| ShanghaiBuyi | Operatingnon-currentassets | Shanghairegion | Yes |
| PutuoYifeng | Operatingnon-currentassets | Shanghairegion | Yes |
| AssetgroupsofXinxingChain | Operatingnon-currentassets | Hebeiregion | No |
| ShanghaiShanghong | Operatingnon-currentassets | Shanghairegion | Yes |
| AssetsofWuzhouPharmacy | Operatingnon-currentassets | Shanghairegion | Yes |
| JiuzhitangMedicine | Operatingnon-currentassets | Hunanregion | Yes |
Changesincompositionofassetgroupsorassetgroupportfolios?Applicable?NotApplicable
| Assetgroupsorassetgroupportfolios | Compositionbeforechanges | Compositionafterchanges | Objectivefactsandbasisforchanges |
| AssetgroupsofDongtaiYifeng | Operatingnon-currentassetsofassetgroupsofDongtaiYifeng | Operatingnon-currentassetsafteracquiringXinglinPharmacy,KunshanYifengHuashengandMuyangJiukuntangPharmacy | TheCompanycontinuestostrengthentheregionalintegrationofacquiredassets,andnewlyacquiredprojectsareoperatedunderaunifiedmanagementstructureaftertheacquisition,withdecisionsandallocationsregardingsales,distribution,andhumanresourcesmadebytheregionalheadquarters.In2024,theJiangsuregionalheadquartersnewlyacquiredtheassetsofXinglinPharmacy,KunshanYifengHuashengandMuyangJiukuntangPharmacy,which,similartotheassetgroupssuchastheformerDongtai |
/
| Yifeng,areundertheunifiedmanagementoftheregionalheadquartersJiangsuYifenginprocurement,distribution,salesandfinancialaccounting.Therefore,basedonthemanagementstructureandthesynergisticeffectofbusinesscombination,thegoodwillisallocatedtothebenefitingassetgroups.Apartfromthenewlyacquiredassets,therearenochangesinthedivisionoftheformerassetgroups. | |||
| AssetsgroupportfoliosofGuangshengtang,JingzhouShashiXinlianxinPharmacy,HubeiZhongjieMedicineandJianliTongzePharmacy | Operatingnon-currentassetsofassetgroupsofGuangshengtang | Operatingnon-currentassetsafteracquiringJingkangPharmacyandTongyuantangStore | In2024,GuangshengtangacquiredtheassetsofJingkangPharmacyandTongyuantangStore,andcarriesoutunifiedmanagementinsales,procurement,distribution,humanresources,andfinance.Therefore,basedonthemanagementstructureandthesynergisticeffectofbusinesscombination,thegoodwillisallocatedtothebenefitingassetgroups. |
| JiuzhouMedicineandJiuzhouPharmacy | Operatingnon-currentassetsofassetgroupsofJiuzhouChain | Operatingnon-currentassetsafteracquiringWuxiShenzhouandTaibohuayuan | In2024,JiuzhouChainacquiredtheassetsofWuxiShenzhouandTaibohuayuan,andcarriesoutunifiedmanagementinsales,procurement,distribution,humanresources,andfinance.Therefore,basedonthemanagementstructureandthesynergisticeffectofbusinesscombination,thegoodwillisallocatedtothebenefitingassetgroups. |
| ShaoguanXiangqin | Operatingnon-currentassetsofassetgroupsofShaoguanXiangqinandGuangdongZengchengKangxin | Operatingnon-currentassetsafteracquiringZengchengJinxiu | Duetotheneedforintegratedmanagement,in2023,allstoresinassetgroupsofGuangdongZengchengKangxinweretransferredtoShaoguanXiangqin,andShaoguanXiangqintakeschargeofunifiedmanagementinsales,procurement,distribution,humanresources,andfinance.TheformerlegalentityofGuangdongZengchengKangxinisplannedtobecancelled.In2024,ShaoguanXiangqinacquiredtheassetsofZengchengJinxiuStore.Basedonthemanagementstructureandthesynergisticeffectofbusinesscombination,thegoodwillisallocatedtothebenefitingassetgroups. |
| AssetgroupsofXinkangJianmin | Operatingnon-currentassetsofassetgroupsofXinkangJianmin | Operatingnon-currentassetsafteracquiringShangraoXuri | TheCompanycontinuestostrengthentheregionalintegrationofacquiredassets,andnewlyacquiredprojectsareoperatedunderaunifiedmanagementstructureaftertheacquisition,withdecisionsandallocationsregardingsales,distribution,andhumanresourcesmadebytheregionalheadquarters.In2024,theJiangxiregionalheadquartersnewlyacquiredtheassetsofShangraoXuri,which,similartotheassetgroupssuchastheformerXinkangJianmin,areundertheunifiedmanagementoftheregionalheadquartersJiangxiYifenginprocurement,distribution,salesandfinancialaccounting.Therefore,basedonthemanagementstructureandthesynergisticeffectofbusinesscombination,thegoodwillisallocatedtothebenefitingassetgroups.Apartfromthenewlyacquiredassets,therearenochangesinthedivisionoftheformerassetgroups. |
| AssetgroupsofAnluYifeng | Operatingnon-currentassetsofassetgroupsofAnluYifeng | Operatingnon-currentassetsafteracquiringYiduKangzhijia | TheCompanycontinuestostrengthentheregionalintegrationofacquiredassets,andnewlyacquiredprojectsareoperatedunderaunifiedmanagementstructureaftertheacquisition,withdecisionsandallocations |
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| regardingsales,distribution,andhumanresourcesmadebytheregionalheadquarters.In2024,theHubeiregionalheadquartersnewlyacquiredtheassetsofYiduKangzhijia,whichareundertheunifiedmanagementoftheregionalheadquartersHubeiYifenginprocurement,distribution,salesandfinancialaccounting.Therefore,basedonthemanagementstructureandthesynergisticeffectofbusinesscombination,thegoodwillisallocatedtothebenefitingassetgroups.Apartfromthenewlyacquiredassets,therearenochangesinthedivisionoftheformerassetgroups. | |||
| AssetgroupsofXinxingChain | Operatingnon-currentassetsofassetgroupsofXinxingChain | Operatingnon-currentassetsafteracquiringtheequityofPingquanXinxingLimin,etc.,andtheassetsofTianjinZhongjingtangPharmacy | TheCompanycontinuestostrengthentheregionalintegrationofacquiredassets,andnewlyacquiredprojectsareoperatedunderaunifiedmanagementstructureaftertheacquisition,withdecisionsandallocationsregardingsales,distribution,andhumanresourcesmadebytheregionalheadquarters.In2024,theXinxingChainnewlyacquiredtheequityofPingquanXinxingLimin,XinxingHuakang,XinxingKangzeandXinxingKanghengBaixingandtheassetsofTianjinZhongjingtangPharmacywhichareundertheunifiedmanagementoftheregionalheadquartersXinxingChaininprocurement,distribution,salesandfinancialaccounting.Therefore,basedonthemanagementstructureandthesynergisticeffectofbusinesscombination,thegoodwillisallocatedtothebenefitingassetgroups. |
Otherremarks?Applicable?NotApplicable
(4)SpecificmethodfordeterminingrecoverableamountRecoverableamountdeterminedbasedonthefairvaluelesscostsofdisposal?Applicable?NotApplicable
| Items | Carryingamountofassetgroupsorassetgroupportfolioswhichincludegoodwill | Recoverableamount | Provisionforimpairment |
| JiangsuShimin | 242,883,341.54 | 213,656,400.00 | 15,490,279.02 |
| Longshuntang | 52,038,162.36 | 45,496,000.00 | 3,336,502.80 |
| Subtotal | 294,921,503.90 | 259,152,400.00 | 18,826,781.82 |
(Continued)
| Items | Determinationmethodoffairvalueandcostsofdisposal | Keyparameters | Determinationbasis |
| JiangsuShimin | Fairvalueisdeterminedbasedondiscountedcashflowmethod.Costsofdisposalisdeterminedbasedonproportionofthefairvalueallocation | Duringthestableperiod,thegrossmarginis36.63%,theoperatingprofitmarginis11.41%,thediscountrateis8.90%.Costsofdisposal-Stampdutyiscalculatedat0.05%ofthefairvalue.Costsofdisposal-Auctioncommissionfollowsatieredstructure:Thecommissionrate | Thegrossprofitmargin,operatingprofitmargin,anddiscountrateduringthestableperiodremainconsistentwiththelevelsinthefinalperiodofthedetailedforecastphase.Costsofdisposal-StamptaxisdeterminedbasedontheStampTaxLaw |
/
| Items | Determinationmethodoffairvalueandcostsofdisposal | Keyparameters | Determinationbasis |
| shallnotexceed5.00%forauctiontransactionpricesbelow2millionyuan;thecommissionrateshallnotexceed3.00%fortheportionexceeding2millionyuanbutnotexceeding10millionyuan;thecommissionrateshallnotexceed2.00%fortheportionexceeding10millionyuanbutnotexceeding50millionyuan. | ofthePeople'sRepublicofChina;Costsofdisposal-AuctioncommissionisdeterminedbasedontheProvisionsoftheSupremePeople'sCourtonAuctionandSaleofPropertyinCivilEnforcementbyPeople'sCourts(JudicialInterpretation[2004]No.16). | ||
| Longshuntang | Fairvalueisdeterminedbasedondiscountedcashflowmethod.Costsofdisposalisdeterminedbasedonproportionofthefairvalueallocation | Duringthestableperiod,thegrossmarginis36.67%,theoperatingprofitmarginis11.27%,thediscountrateis9.00%.Costsofdisposal-Stampdutyiscalculatedat0.05%ofthefairvalue.Costsofdisposal-Auctioncommissionfollowsatieredstructure:Thecommissionrateshallnotexceed5.00%forauctiontransactionpricesbelow2millionyuan;thecommissionrateshallnotexceed3.00%fortheportionexceeding2millionyuanbutnotexceeding10millionyuan;thecommissionrateshallnotexceed2.00%fortheportionexceeding10millionyuanbutnotexceeding50millionyuan. | Thegrossprofitmargin,operatingprofitmargin,anddiscountrateduringthestableperiodremainconsistentwiththelevelsinthefinalperiodofthedetailedforecastphase.Costsofdisposal-StamptaxisdeterminedbasedontheStampTaxLawofthePeople'sRepublicofChina;Costsofdisposal-AuctioncommissionisdeterminedbasedontheProvisionsoftheSupremePeople'sCourtonAuctionandSaleofPropertyinCivilEnforcementbyPeople'sCourts(JudicialInterpretation[2004]No.16). |
Recoverableamountdeterminedbasedonthepresentvalueofestimatedfuturecashflows?Applicable?NotApplicable
| Items | Carryingamountofassetgroupsorassetgroupportfolioswhichincludegoodwill | Recoverableamount | Provisionforimpairment |
| Jiyangtang | 17,888,072.94 | 38,200,000.00 | |
| AssetsofHengyangDazhongHealthPharmacy | 30,712,034.05 | 50,600,000.00 | |
| AssetsofJianhuRenminPharmacyandJianhuYuanshengtangPharmacy | 17,527,920.02 | 20,400,000.00 | |
| JinzhouPukang | 44,622,747.37 | 94,400,000.00 | |
| Jiankangren | 128,734,461.40 | 195,000,000.00 | |
| AssetsofLichuanTong’an | 19,602,486.68 | 40,400,000.00 | |
| PingjiangYifeng | 13,745,344.89 | 20,000,000.00 | |
| AssetssofQidongGuodaHealthPharmacy | 14,918,000.00 | 38,100,000.00 | |
| MachengYifeng | 24,724,165.61 | 27,000,000.00 | |
| AssetgroupsofDongtaiYifeng | 289,663,975.02 | 357,270,000.00 | |
| Aierkang | 40,809,896.88 | 163,000,000.00 | |
| AssetsofKaixinPharmacy | 24,799,370.13 | 31,500,000.00 | |
| AssetsofWuhanHoudetang | 13,980,178.85 | 56,000,000.00 | |
| WuhanLongtai | 66,325,474.52 | 133,000,000.00 |
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| NanjingYifeng | 30,601,761.91 | 50,300,000.00 |
| AssetsofXiaoganTiansheng | 12,742,268.64 | 24,100,000.00 |
| AssetsofSuqianJiujiuMedicineSupermarket | 46,921,371.08 | 71,500,000.00 |
| AssetsofGuangfutang | 26,342,700.00 | 28,000,000.00 |
| AssetsgroupportfoliosofGuangshengtang,JingzhouShashiXinlianxinPharmacy,HubeiZhongjieMedicineandJianliTongzePharmacy | 85,426,394.05 | 140,000,000.00 |
| AssetsofHuarongYikangPharmacy | 8,436,054.07 | 23,400,000.00 |
| YangpuYifeng | 52,761,178.72 | 62,000,000.00 |
| AssetsofLiuyangTianshunPharmacy | 37,124,400.00 | 88,400,000.00 |
| RudongYifengBencao | 52,027,961.02 | 53,400,000.00 |
| AssetsofNanxianShijikangPharmacy | 2,550,844.69 | 13,100,000.00 |
| SuzhouYuehaiandXinqunzhongClinic | 80,452,118.35 | 123,020,000.00 |
| AssetsofNingxiangJiuzhitang | 28,007,451.81 | 32,200,000.00 |
| AssetsofShuangfengYongjitang | 3,709,339.67 | 6,290,000.00 |
| AssetsofSihongShidaiMedicineandSihongYifengJizhouPharmacy | 79,356,005.47 | 100,000,000.00 |
| AssetsofHunanSinopharmHoldingsJiajiakangPharmacy | 18,720,983.51 | 22,200,000.00 |
| AssetsofXinbaikangPharmacy | 55,612,550.12 | 57,000,000.00 |
| AssetgroupportfoliosofTaizhouYifeng,XinghuaYishantang,TaizhouBaixingrenandJiangsuYishuMedicine | 118,034,459.05 | 197,000,000.00 |
| YifengLuoshiXieheandYongzhouDaoxianRenrenkangPharmacy | 49,519,387.87 | 58,900,000.00 |
| YueyangYifeng | 16,556,808.99 | 34,500,000.00 |
| AssetsofSuqianJiaheMedicine | 40,355,593.72 | 44,700,000.00 |
| AssetsofChangshaQingyuantangPharmacy | 12,044,191.86 | 25,700,000.00 |
| AssetsofSuqianDashengMedicine | 8,283,721.28 | 17,300,000.00 |
| AssetsofChangshaTailaiSenyantangPharmacy | 10,645,768.92 | 37,200,000.00 |
| JiuzhouMedicineandJiuzhouPharmacy | 376,332,373.30 | 561,000,000.00 |
| AssetsofZhuzhouZhengxiangPharmacy | 23,462,960.52 | 43,100,000.00 |
| ShaoguanXiangqin | 179,378,182.36 | 181,000,000.00 |
| Huai’anJisheng | 83,960,094.22 | 128,000,000.00 |
| AssetgroupportfoliosofJiangxiTianshunandXinyuBaihuikang | 158,871,723.10 | 167,000,000.00 |
| AssetsofGuangyunKangshengPharmacy | 12,314,134.73 | 15,600,000.00 |
| RudongYifeng | 41,801,948.78 | 149,000,000.00 |
| AssetgroupsofMiluoTianheng | 100,918,399.44 | 129,720,000.00 |
| AssetsofNantongZhongzhichenPharmacy | 19,682,025.98 | 60,000,000.00 |
| YuehaiYongxitang | 44,833,057.51 | 70,600,000.00 |
| Baicaotang | 105,215,227.72 | 261,000,000.00 |
/
| AssetgroupsofXinkangJianmin | 200,807,886.35 | 273,650,000.00 |
| XuzhouEnqi | 38,207,766.13 | 161,000,000.00 |
| AssetgroupsofAnluYifeng | 279,923,701.15 | 457,780,000.00 |
| AssetsofJiangxiCaisen | 35,017,100.00 | 38,200,000.00 |
| ShanghaiBuyi | 24,619,291.61 | 25,000,000.00 |
| PutuoYifeng | 15,291,429.56 | 17,900,000.00 |
| AssetgroupsofXinxingChain | 2,426,628,480.11 | 2,470,000,000.00 |
| ShanghaiShanghong | 249,374,123.72 | 258,000,000.00 |
| AssetsofWuzhouPharmacy | 24,212,100.00 | 48,000,000.00 |
| JiuzhitangMedicine | 314,716,775.22 | 538,000,000.00 |
| Subtotal | 6,379,856,224.67 | 8,628,630,000.00 |
(Continued)
| Items | Forecastperiod(years) | Parametersincludingrevenuegrowthrateandprofitmarginforforecastperiodandtheirdeterminationbasis | Parametersincludingrevenuegrowthrateandprofitmarginforstableperiodandtheirdeterminationbasis | Discountrateanditsdeterminationbasis |
| Jiyangtang | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to2.14%;thegrossmarginisexpectedtorangefrom36.24%to36.26%;andtheperiodexpenserateisexpectedtorangefrom26.81%to27.06%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe36.26%;andtheperiodexpenserateisexpectedtobe26.81%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetsofHengyangDazhongHealthPharmacy | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to2.00%;thegrossmarginisexpectedtorangefrom26.28%to26.28%;andtheperiodexpenserateisexpectedtorangefrom16.67%to16.74%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe26.28%;andtheperiodexpenserateisexpectedtobe16.67%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetsofJianhuRenminPharmacyandJianhuYuanshengtangPharmacy | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom1.25%to2.00%;thegrossmarginisexpectedtorangefrom36.69%to36.69%;andtheperiodexpenserateisexpectedtorangefrom26.69%to27.12%,whicharedeterminedbytheCompanybasedon | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe36.69%;andtheperiodexpenserateisexpectedtobe27.12%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbya | 11.90%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
/
| businessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | stableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | |||
| JinzhouPukang | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to2.44%;thegrossmarginisexpectedtorangefrom39.52%to39.54%;andtheperiodexpenserateisexpectedtorangefrom26.45%to26.70%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe39.54%;andtheperiodexpenserateisexpectedtobe26.45%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| Jiankangren | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to7.40%;thegrossmarginisexpectedtorangefrom41.23%to41.25%;andtheperiodexpenserateisexpectedtorangefrom32.69%to33.08%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe41.25%;andtheperiodexpenserateisexpectedtobe33.08%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 11.90%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetsofLichuanTong’an | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom0.00%to2.00%;thegrossmarginisexpectedtorangefrom40.38%to40.38%;andtheperiodexpenserateisexpectedtorangefrom28.83%to29.28%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe40.38%;andtheperiodexpenserateisexpectedtobe29.20%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| PingjiangYifeng | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to2.32%;thegrossmarginisexpectedtorangefrom38.25%to38.38%;andtheperiodexpenserateisexpectedtorangefrom31.24%to31.44%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe38.38%;andtheperiodexpenserateisexpectedtobe31.24%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
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| AssetsofQidongGuodaHealthPharmacy | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to2.00%;thegrossmarginisexpectedtorangefrom32.98%to32.98%;andtheperiodexpenserateisexpectedtorangefrom21.39%to21.52%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe32.98%;andtheperiodexpenserateisexpectedtobe21.39%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| MachengYifeng | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to8.30%;thegrossmarginisexpectedtorangefrom39.07%to39.84%;andtheperiodexpenserateisexpectedtorangefrom31.79%to35.98%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe39.84%;andtheperiodexpenserateisexpectedtobe31.79%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetgroupsofDongtaiYifeng | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to4.02%;thegrossmarginisexpectedtorangefrom36.37%to36.47%;andtheperiodexpenserateisexpectedtorangefrom27.45%to28.37%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe36.44%;andtheperiodexpenserateisexpectedtobe27.81%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 11.90%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| Aierkang | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to2.00%;thegrossmarginisexpectedtorangefrom37.53%to37.53%;andtheperiodexpenserateisexpectedtorangefrom23.71%to23.81%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe37.53%;andtheperiodexpenserateisexpectedtobe23.71%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetsofKaixinPharmacy | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom-0.63%to2.00%;thegrossmarginisexpectedtorangefrom34.93%to34.94%;andthe | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe34.94%;andtheperiodexpenserateisexpectedtobe27.56%.TheCompanyis | 11.90%;theweightedaveragecostofcapital(WACC)isdetermined |
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| periodexpenserateisexpectedtorangefrom26.76%to27.56%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | expectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | basedonthecostofequitycapitalandthecostofdebt. | ||
| AssetsofWuhanHoudetang | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom0.01%to2.00%;thegrossmarginisexpectedtorangefrom35.18%to35.18%;andtheperiodexpenserateisexpectedtorangefrom18.85%to19.16%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe35.18%;andtheperiodexpenserateisexpectedtobe19.09%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| WuhanLongtai | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom0.02%to2.00%;thegrossmarginisexpectedtorangefrom33.96%to33.97%;andtheperiodexpenserateisexpectedtorangefrom21.04%to21.38%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe33.97%;andtheperiodexpenserateisexpectedtobe21.30%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| NanjingYifeng | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom-1.57%to2.00%;thegrossmarginisexpectedtorangefrom34.97%to34.98%;andtheperiodexpenserateisexpectedtorangefrom27.88%to28.72%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe34.97%;andtheperiodexpenserateisexpectedtobe28.72%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 11.90%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetsofXiaoganTiansheng | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom0.00%to2.00%;thegrossmarginisexpectedtorangefrom28.34%to28.34%;andtheperiodexpenserateisexpectedtorangefrom19.13%to19.41%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsand | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe28.34%;andtheperiodexpenserateisexpectedtobe19.32%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,during | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
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| expectationsforthefuturedevelopmentofthemarketindustry. | whichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | |||
| AssetsofSuqianJiujiuMedicineSupermarket | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom-3.57%to2.00%;thegrossmarginisexpectedtorangefrom36.50%to36.51%;andtheperiodexpenserateisexpectedtorangefrom27.63%to28.30%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe36.51%;andtheperiodexpenserateisexpectedtobe28.30%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 11.90%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetsofGuangfutang | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom0.00%to2.00%;thegrossmarginisexpectedtorangefrom37.39%to37.39%;andtheperiodexpenserateisexpectedtorangefrom25.42%to25.96%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe37.39%;andtheperiodexpenserateisexpectedtobe25.42%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetsgroupportfoliosofGuangshengtang,JingzhouShashiXinlianxinPharmacy,HubeiZhongjieMedicineandJianliTongzePharmacy | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom0.74%to2.00%;thegrossmarginisexpectedtorangefrom34.38%to34.50%;andtheperiodexpenserateisexpectedtorangefrom28.46%to28.72%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe34.38%;andtheperiodexpenserateisexpectedtobe28.58%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetsofHuarongYikangPharmacy | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom-5.94%to2.00%;thegrossmarginisexpectedtorangefrom37.67%to37.67%;andtheperiodexpenserateisexpectedtorangefrom21.47%to21.52%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe37.67%;andtheperiodexpenserateisexpectedtobe21.47%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| YangpuYifeng | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginis | 12.00%;theweightedaveragecostof |
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| -11.86%to1.96%;thegrossmarginisexpectedtorangefrom39.21%to39.31%;andtheperiodexpenserateisexpectedtorangefrom25.01%to25.06%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | expectedtobe39.21%;andtheperiodexpenserateisexpectedtobe25.01%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | capital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. | ||
| AssetsofLiuyangTianshunPharmacy | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom0.00%to2.00%;thegrossmarginisexpectedtorangefrom39.80%to39.80%;andtheperiodexpenserateisexpectedtorangefrom25.76%to26.17%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe39.80%;andtheperiodexpenserateisexpectedtobe26.17%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| RudongYifengBencao | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom-0.90%to7.45%;thegrossmarginisexpectedtorangefrom37.93%to38.12%;andtheperiodexpenserateisexpectedtorangefrom27.63%to29.67%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe37.93%;andtheperiodexpenserateisexpectedtobe27.94%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 11.90%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetsofNanxianShijikangPharmacy | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to2.00%;thegrossmarginisexpectedtorangefrom42.88%to42.88%;andtheperiodexpenserateisexpectedtorangefrom26.50%to26.60%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe42.88%;andtheperiodexpenserateisexpectedtobe26.50%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| SuzhouYuehaiandXinqunzhongClinic | 5years |
From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom-1.65%to8.24%;thegrossmarginisexpectedtorangefrom
27.34%to27.37%;andtheperiodexpenserateisexpectedtorangefrom14.07%to
14.41%,whicharedetermined
| Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe27.34%;andtheperiodexpenserateisexpectedtobe14.23%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodends | 11.90%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthe |
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| bytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | attheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | costofdebt. | ||
| AssetsofNingxiangJiuzhitang | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom-10.00%to2.00%;thegrossmarginisexpectedtorangefrom40.03%to40.03%;andtheperiodexpenserateisexpectedtorangefrom25.46%to25.60%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe40.03%;andtheperiodexpenserateisexpectedtobe25.46%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetsofShuangfengYongjitang | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to2.00%;thegrossmarginisexpectedtorangefrom32.23%to32.23%;andtheperiodexpenserateisexpectedtorangefrom22.27%to22.44%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe32.23%;andtheperiodexpenserateisexpectedtobe22.27%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetsofSihongShidaiMedicineandSihongYifengJizhouPharmacy | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom1.88%to2.00%;thegrossmarginisexpectedtorangefrom37.74%to37.80%;andtheperiodexpenserateisexpectedtorangefrom30.92%to31.36%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe37.74%;andtheperiodexpenserateisexpectedtobe31.36%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 11.90%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetsofHunanSinopharmHoldingsJiajiakangPharmacy | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom-14.00%to2.00%;thegrossmarginisexpectedtorangefrom46.12%to46.12%;andtheperiodexpenserateisexpectedtorangefrom32.47%to32.66%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe46.12%;andtheperiodexpenserateisexpectedtobe32.47%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
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| AssetsofXinbaikangPharmacy | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom0.00%to9.94%;thegrossmarginisexpectedtorangefrom40.80%to40.85%;andtheperiodexpenserateisexpectedtorangefrom25.00%to29.16%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe40.85%;andtheperiodexpenserateisexpectedtobe25.00%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetgroupportfoliosofTaizhouYifeng,XinghuaYishantang,TaizhouBaixingrenandJiangsuYishuMedicine | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to6.43%;thegrossmarginisexpectedtorangefrom35.95%to35.99%;andtheperiodexpenserateisexpectedtorangefrom28.67%to29.07%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe35.95%;andtheperiodexpenserateisexpectedtobe29.07%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 11.90%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| YifengLuoshiXieheandYongzhouDaoxianRenrenkangPharmacy | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom0.01%to2.00%;thegrossmarginisexpectedtorangefrom41.67%to41.67%;andtheperiodexpenserateisexpectedtorangefrom34.21%to34.39%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe41.67%;andtheperiodexpenserateisexpectedtobe34.21%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| YueyangYifeng | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to3.28%;thegrossmarginisexpectedtorangefrom36.22%to36.34%;andtheperiodexpenserateisexpectedtorangefrom29.91%to30.09%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe36.34%;andtheperiodexpenserateisexpectedtobe29.90%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetsofSuqianJiaheMedicine | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom-0.20%to2.00%;thegrossmarginisexpectedtorangefrom20.71%to20.71%;andthe | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe20.71%;andtheperiodexpenserateisexpectedtobe16.55%.TheCompanyis | 11.90%;theweightedaveragecostofcapital(WACC)isdetermined |
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| periodexpenserateisexpectedtorangefrom16.33%to16.55%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | expectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | basedonthecostofequitycapitalandthecostofdebt. | ||
| AssetsofChangshaQingyuantangPharmacy | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom-3.00%to2.00%;thegrossmarginisexpectedtorangefrom43.56%to43.56%;andtheperiodexpenserateisexpectedtorangefrom31.93%to32.07%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe43.56%;andtheperiodexpenserateisexpectedtobe31.93%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetsofSuqianDashengMedicine | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom-4.72%to2.00%;thegrossmarginisexpectedtorangefrom32.43%to32.44%;andtheperiodexpenserateisexpectedtorangefrom24.84%to25.49%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe32.44%;andtheperiodexpenserateisexpectedtobe25.49%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 11.90%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetsofChangshaTailaiSenyantangPharmacy | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to2.00%;thegrossmarginisexpectedtorangefrom38.48%to38.48%;andtheperiodexpenserateisexpectedtorangefrom25.15%to25.26%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe38.48%;andtheperiodexpenserateisexpectedtobe25.15%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| JiuzhouMedicineandJiuzhouPharmacy | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom-1.82%to2.68%;thegrossmarginisexpectedtorangefrom38.86%to39.24%;andtheperiodexpenserateisexpectedtorangefrom33.52%to33.90%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsand | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe38.86%;andtheperiodexpenserateisexpectedtobe33.90%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,during | 11.90%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
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| expectationsforthefuturedevelopmentofthemarketindustry. | whichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | |||
| AssetsofZhuzhouZhengxiangPharmacy | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to2.00%;thegrossmarginisexpectedtorangefrom32.22%to32.22%;andtheperiodexpenserateisexpectedtorangefrom21.66%to21.77%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe32.22%;andtheperiodexpenserateisexpectedtobe21.66%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| ShaoguanXiangqin | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom-0.03%to2.38%;thegrossmarginisexpectedtorangefrom39.77%to42.29%;andtheperiodexpenserateisexpectedtorangefrom34.03%to35.38%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe39.77%;andtheperiodexpenserateisexpectedtobe34.03%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.30%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| Huai’anJisheng | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to2.33%;thegrossmarginisexpectedtorangefrom38.70%to38.77%;andtheperiodexpenserateisexpectedtorangefrom29.88%to30.25%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe38.70%;andtheperiodexpenserateisexpectedtobe30.25%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 11.90%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetgroupportfoliosofJiangxiTianshunandXinyuBaihuikang | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to4.02%;thegrossmarginisexpectedtorangefrom38.99%to39.95%;andtheperiodexpenserateisexpectedtorangefrom34.09%to34.70%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe39.95%;andtheperiodexpenserateisexpectedtobe34.09%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.10%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetsofGuangyunKangsheng | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom-0.16% | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginis | 11.90%;theweightedaveragecostof |
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| Pharmacy | to2.00%;thegrossmarginisexpectedtorangefrom38.68%to38.68%;andtheperiodexpenserateisexpectedtorangefrom30.35%to31.21%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | expectedtobe38.68%;andtheperiodexpenserateisexpectedtobe31.21%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | capital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. | |
| RudongYifeng | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to7.35%;thegrossmarginisexpectedtorangefrom39.87%to39.96%;andtheperiodexpenserateisexpectedtorangefrom27.46%to27.72%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe39.87%;andtheperiodexpenserateisexpectedtobe27.72%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 11.90%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetgroupsofMiluoTianheng | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom-3.29%to2.48%;thegrossmarginisexpectedtorangefrom37.07%to37.08%;andtheperiodexpenserateisexpectedtorangefrom26.88%to27.15%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe37.08%;andtheperiodexpenserateisexpectedtobe26.88%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.10%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetsofNantongZhongzhichenPharmacy | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to4.06%;thegrossmarginisexpectedtorangefrom33.70%to33.70%;andtheperiodexpenserateisexpectedtorangefrom22.57%to22.74%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe33.70%;andtheperiodexpenserateisexpectedtobe22.74%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 11.90%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| YuehaiYongxitang | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom0.13%to2.00%;thegrossmarginisexpectedtorangefrom41.85%to41.92%;andtheperiodexpenserateisexpectedtorangefrom32.79%to33.74%,whicharedetermined | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe41.85%;andtheperiodexpenserateisexpectedtobe33.74%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodends | 11.90%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthe |
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| bytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | attheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | costofdebt. | ||
| Baicaotang | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to4.50%;thegrossmarginisexpectedtorangefrom37.53%to37.57%;andtheperiodexpenserateisexpectedtorangefrom24.22%to24.44%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe37.53%;andtheperiodexpenserateisexpectedtobe24.44%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 11.90%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetgroupsofXinkangJianmin | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.04%to4.81%;thegrossmarginisexpectedtorangefrom36.72%to37.31%;andtheperiodexpenserateisexpectedtorangefrom28.44%to28.72%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe37.44%;andtheperiodexpenserateisexpectedtobe28.67%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.10%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| XuzhouEnqi | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom-3.45%to2.00%;thegrossmarginisexpectedtorangefrom40.26%to40.31%;andtheperiodexpenserateisexpectedtorangefrom25.84%to26.52%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe40.26%;andtheperiodexpenserateisexpectedtobe26.52%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 11.90%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetgroupsofAnluYifeng | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to6.93%;thegrossmarginisexpectedtorangefrom37.26%to37.43%;andtheperiodexpenserateisexpectedtorangefrom27.82%to29.06%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe37.29%;andtheperiodexpenserateisexpectedtobe27.82%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
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| AssetsofJiangxiCaisen | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to2.00%;thegrossmarginisexpectedtorangefrom37.49%to37.49%;andtheperiodexpenserateisexpectedtorangefrom23.78%to24.07%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe37.49%;andtheperiodexpenserateisexpectedtobe23.78%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.10%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| ShanghaiBuyi | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to2.00%;thegrossmarginisexpectedtorangefrom41.44%to41.44%;andtheperiodexpenserateisexpectedtorangefrom22.08%to22.13%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe41.44%;andtheperiodexpenserateisexpectedtobe22.08%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| PutuoYifeng | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom0.00%to2.00%;thegrossmarginisexpectedtorangefrom35.21%to35.21%;andtheperiodexpenserateisexpectedtorangefrom26.46%to26.61%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe35.21%;andtheperiodexpenserateisexpectedtobe26.46%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| AssetgroupsofXinxingChain | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom1.96%to5.72%;thegrossmarginisexpectedtorangefrom32.04%to32.07%;andtheperiodexpenserateisexpectedtorangefrom23.47%to23.97%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe32.07%;andtheperiodexpenserateisexpectedtobe23.47%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 11.90%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| ShanghaiShanghong | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to2.00%;thegrossmarginisexpectedtorangefrom37.48%to37.48%;andthe | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe37.48%;andtheperiodexpenserateisexpectedtobe25.20%.TheCompanyis | 12.00%;theweightedaveragecostofcapital(WACC)isdetermined |
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| periodexpenserateisexpectedtorangefrom25.20%to25.30%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | expectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | basedonthecostofequitycapitalandthecostofdebt. | ||
| AssetsofWuzhouPharmacy | 5years | From2025to2029,thesalesrevenuegrowthrateisexpectedtorangefrom2.00%to2.00%;thegrossmarginisexpectedtorangefrom37.10%to37.10%;andtheperiodexpenserateisexpectedtorangefrom22.79%to22.82%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe37.10%;andtheperiodexpenserateisexpectedtobe22.79%.TheCompanyisexpectedtoachieveastableoperatingstatusby2029.Therefore,theforecastperiodendsattheendof2029,followedbyastableperiodfrom2030onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
| JiuzhitangMedicine | 6years | From2025to2030,thesalesrevenuegrowthrateisexpectedtorangefrom4.24%to6.87%;thegrossmarginisexpectedtorangefrom26.46%to27.47%;andtheperiodexpenserateisexpectedtorangefrom21.70%to22.71%,whicharedeterminedbytheCompanybasedonbusinessperformanceinpreviousyearsandexpectationsforthefuturedevelopmentofthemarketindustry. | Duringthestableperiod,thesalesrevenuegrowthrateisexpectedtobe2.00%;thegrossmarginisexpectedtobe26.46%;andtheperiodexpenserateisexpectedtobe21.70%.TheCompanyisexpectedtoachieveastableoperatingstatusby2030.Therefore,theforecastperiodendsattheendof2030,followedbyastableperiodfrom2031onwardsintothefutureperpetuity,duringwhichtheCompany’sbusinessperformancewillmaintainastablelevelofcashearnings. | 12.00%;theweightedaveragecostofcapital(WACC)isdeterminedbasedonthecostofequitycapitalandthecostofdebt. |
Pursuanttothe“AssessmentReportontheRecoverableValueofAssetGroupPortfoliosInvolvedintheImpairmentTestofGoodwillFormedbytheAcquisitionofEquityandStoreAssetsProposedbyYifengPharmacyChainCo.,Ltd.”(JinZhengPingBaoZi[2025]No.0221)issuedbyJinzheng(Shanghai)AssetAppraisalCo.,Ltd.onApril21,2025,whichisengagedbytheCompany,therecoverableamountoftheassetgroupsorassetgroupportfoliosthatincludegoodwillofJiangsuShiminandLongshuntangislowerthantheircarryingamount.Impairmentlossesforabove-mentionedassetgroupshavebeenrecognized.Reasonsforthesignificantinconsistenciesbetweenaforementionedinformationandinformationusedinpreviousimpairmenttestsorexternalinformation?Applicable?NotApplicableReasonsforthesignificantinconsistenciesbetweeninformationusedinpreviousimpairmenttestsandactualperformance?Applicable?NotApplicable
(5)Completionofperformancecommitmentanditseffectongoodwillimpairmenttest
/
Performancecommitmentwhengoodwillformedandreportingperiodorpreviousreportingperiodwithinperformancecommitmentperiods?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
28.Long-termprepayments?Applicable?NotApplicable
| Items | Openingbalance | Increase | Amortization | Otherdecreases | Closingbalance |
| Renovationcosts | 442,693,152.93 | 237,298,102.28 | 228,831,188.13 | 451,160,067.08 | |
| Storetransferfees | 52,953,986.00 | 22,634,980.81 | 36,093,825.15 | 39,495,141.66 | |
| Total | 495,647,138.93 | 259,933,083.09 | 264,925,013.28 | 490,655,208.74 |
OtherremarksNone
29.Deferredtaxassetsanddeferredtaxliabilities
(1)Deferredtaxassetsbeforeoffset?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 | ||
| Deductibletemporarydifference | Deferredtaxassets | Deductibletemporarydifference | Deferredtaxassets | |
| Provisionforimpairmentofassets | 61,775,630.66 | 15,333,123.86 | 59,127,821.57 | 14,685,991.11 |
| Unrealizedprofitfrominternaltransactions | 232,833,558.32 | 58,208,389.58 | 235,459,783.00 | 58,864,945.75 |
| Deductiblelosses | 63,112,999.56 | 15,778,249.89 | 29,328,308.08 | 7,332,077.02 |
| Share-basedpaymentfees | 2,331,011.12 | 582,752.78 | 23,689,648.30 | 5,922,412.08 |
| LeaseLiabilitiesandAdvancespaidadjustion | 4,048,850,316.57 | 1,012,212,579.14 | 4,173,343,988.97 | 1,043,335,997.25 |
| Changesinfairvalue | 63,697,987.35 | 15,924,496.84 | ||
| Total | 4,472,601,503.58 | 1,118,039,592.09 | 4,520,949,549.92 | 1,130,141,423.21 |
(2)Deferredtaxliabilitiesbeforeoffset?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 | ||
| Taxabletemporarydifference | Deferredtaxliabilities | Taxabletemporarydifference | Deferredtaxliabilities | |
| Assetsappraisalappreciationduetobusinesscombinationnot | 61,643,193.92 | 15,410,798.48 | 78,478,653.88 | 19,619,663.47 |
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| Items | Closingbalance | December31,2023 | ||
| Taxabletemporarydifference | Deferredtaxliabilities | Taxabletemporarydifference | Deferredtaxliabilities | |
| undercommoncontrol | ||||
| Changesinfairvalue | 28,555,612.65 | 7,138,903.16 | ||
| Right-of-useassetsadjustion | 3,877,665,712.04 | 969,416,428.01 | 3,965,884,425.82 | 991,471,106.46 |
| Total | 3,939,308,905.96 | 984,827,226.49 | 4,072,918,692.35 | 1,018,229,673.09 |
(3)Deferredtaxassetsorliabilitiesafteroffset?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 | ||
| Deferredtaxassetsoffsetbydeferredtaxliabilities | Deferredtaxassets/liabilitiesafteroffset | Deferredtaxassetsoffsetbydeferredtaxliabilities | Deferredtaxassets/liabilitiesafteroffset | |
| Deferredtaxassets | 969,416,428.01 | 148,623,164.08 | 991,471,106.46 | 138,670,316.75 |
| Deferredtaxliabilities | 969,416,428.01 | 15,410,798.48 | 991,471,106.46 | 26,758,566.63 |
(4)Detailsofunrecognizeddeferredtaxassets?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
| Deductibletemporarydifference | 21,606.68 | 2,307,197.66 |
| Deductiblelosses | 383,025,228.95 | 265,106,483.95 |
| Total | 383,046,835.63 | 267,413,681.61 |
(5)Maturityyearsofdeductiblelossesofunrecognizeddeferredtaxassets?Applicable?NotApplicable
| Maturityyears | Closingbalance | December31,2023 | Remarks |
| Year2024 | 6,777,279.41 | ||
| Year2025 | 15,050,076.90 | 15,268,901.76 | |
| Year2026 | 60,006,609.79 | 66,990,035.41 | |
| Year2027 | 87,617,772.60 | 99,245,366.98 | |
| Year2028 | 72,012,445.36 | 76,824,900.39 | |
| Year2029 | 148,338,324.29 | ||
| Total | 383,025,228.94 | 265,106,483.95 |
Otherremarks?Applicable?NotApplicable
30.Othernon-currentassets?Applicable?NotApplicable
/
| Items | Closingbalance | December31,2023 |
| PrepaymentsforDepositofequitytransferandStoreacquisition | 9,335,958.11 | 18,650,000.00 |
| Prepaymentsforlong-termassets | 5,829,954.52 | 11,619,025.79 |
| Total | 15,165,912.63 | 30,269,025.79 |
OtherremarksNone
31.Assetswithtitleoruserightrestrictions?Applicable?NotApplicable
| Items | Closingbookbalance | Closingcarryingamount | Typeofrestrictions | Reasonsforrestrictions |
| Cashandbankbalances | 1,418,127,706.70 | 1,418,127,706.70 | ||
| Including:Principalofdepositsforacceptancebillsinterestthereof | 1,337,755,370.27 | 1,337,755,370.27 | Depositforacceptancebills | Deposits |
| Depositsforgovernmentplatforms | 30,336.43 | 30,336.43 | Depositforgovernmentplatforms | Deposits |
| Cashinbank | 80,000,000.00 | 80,000,000.00 | Wealthmanagementproductinvestmentundercontrol | Wealthmanagementproductinvestmentundercontrol |
| Cashinbank | 340,000.00 | 340,000.00 | Judicialfrozenfunds | Judicialfrozenfunds |
| Cashinbank | 2,000.00 | 2,000.00 | ETCfrozenfunds | Businessfrozen |
| Debtinvestments | 88,710,433.34 | 88,710,433.34 | Pledgedcertificateofdeposits | Pledgedandfrozen |
| Total | 1,506,838,140.04 | 1,506,838,140.04 |
(Continued)
| Items | Openingbookbalance | Openingcarryingamount | Typeofrestrictions | Reasonsforrestrictions |
| Cashandbankbalances | 1,097,325,599.21 | 1,097,325,599.21 | ||
| Including:Principalofdepositsforacceptancebillsinterestthereof | 1,096,521,187.18 | 1,096,521,187.18 | Depositforacceptancebills | Deposits |
| Depositsforgovernmentplatforms | 30,283.77 | 30,283.77 | Depositforgovernmentplatforms | Deposits |
| Cashinbank | 774,128.26 | 774,128.26 | Judicialfrozenfunds | Judicialfrozenfunds |
| Debtinvestments | 102,729,722.22 | 102,729,722.22 | Pledgedcertificateofdeposits | Pledgedandfrozen |
| Total | 1,200,055,321.43 | 1,200,055,321.43 |
OtherremarksNone
32.Short-termborrowings
(1)Categoriesofshort-termborrowings?Applicable?NotApplicable
/
| Items | Closingbalance | Openingbalance |
| Guaranteedborrowings | 30,026,388.89 | |
| Total | 30,026,388.89 |
Remarksoncategoriesofshort-termborrowingsNone
(2)Overdueshort-termborrowings?Applicable?NotApplicableSignificantoverdueshort-termborrowings?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
33.Held-for-tradingfinancialliabilities?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
34.Derivativefinancialliabilities?Applicable?NotApplicable
35.Notespayable
(1)Details?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
| Tradeacceptance | ||
| Bankacceptance | 7,537,483,385.03 | 6,215,388,292.66 |
| Total | 7,537,483,385.03 | 6,215,388,292.66 |
Notespayableduebutunpaidtotaled0yuaninthecurrentperiod
36.Accountspayable
(1)Details?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
| Paymentforgoods | 1,954,806,180.26 | 1,955,564,568.05 |
| Total | 1,954,806,180.26 | 1,955,564,568.05 |
(2)Significantaccountspayablewithageoveroneyear?Applicable?NotApplicableOtherremarks
/
?Applicable?NotApplicable
37.Advancesreceived
(1)Details?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
| Rentcharge | 22,884,188.22 | 15,959,550.59 |
| Total | 22,884,188.22 | 15,959,550.59 |
(2)Significantadvancesreceivedoverdueorwithageoveroneyear?Applicable?NotApplicable
(3)Reasonsforsignificantchangesincarryingamountofadvancesreceivedinthecurrentperiod?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
38.Contractliabilities
(1)Details?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
| Paymentforgoods | 130,070,603.90 | 80,166,931.03 |
| Total | 130,070,603.90 | 80,166,931.03 |
(2)Significantcontractliabilitieswithageoveroneyear?Applicable?NotApplicable
(3)Reasonsforsignificantchangesinthecarryingamountofcontractliabilitiesinthecurrentperiod?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
39.Employeebenefitspayable
(1)Details?Applicable?NotApplicable
| Items | Openingbalance | Increase | Businesscombination | Decrease | Closingbalance |
| Short-termemployeebenefits | 461,108,215.84 | 3,632,098,676.80 | 321,148.45 | 3,601,783,917.38 | 491,744,123.71 |
| Post-employmentbenefits-definedcontributionplan | 2,625,394.16 | 331,671,059.99 | 331,819,538.06 | 2,476,916.09 | |
| Terminationbenefits | 2,228,597.33 | 2,228,597.33 |
/
| Items | Openingbalance | Increase | Businesscombination | Decrease | Closingbalance |
| Otherbenefitsduewithinoneyear | |||||
| Total | 463,733,610.00 | 3,965,998,334.12 | 321,148.45 | 3,935,832,052.77 | 494,221,039.80 |
(2)Detailsofshort-termemployeebenefits?Applicable?NotApplicable
| Items | Openingbalance | Increase | Businesscombination | Decrease | Closingbalance |
| Wage,bonus,allowanceandsubsidy | 454,906,716.18 | 3,208,092,600.63 | 321,148.45 | 3,176,043,296.31 | 487,277,168.95 |
| Employeewelfarefund | 154,119,468.24 | 154,119,468.24 | |||
| Socialinsurancepremium | 1,543,253.86 | 192,962,014.84 | 193,367,357.87 | 1,137,910.83 | |
| Including:Medicarepremium | 1,387,943.19 | 177,538,977.21 | 177,935,972.44 | 990,947.96 | |
| Occupationalinjuriespremium | 28,804.13 | 9,331,601.52 | 9,336,622.16 | 23,783.49 | |
| Maternitypremium | 126,506.54 | 6,091,436.11 | 6,094,763.27 | 123,179.38 | |
| Housingprovidentfund | 884,459.32 | 67,536,009.14 | 68,420,087.38 | 381.08 | |
| Tradeunionfundandemployeeeducationfund | 3,773,786.48 | 9,388,583.95 | 9,833,707.58 | 3,328,662.85 | |
| Short-termpaidleave | |||||
| Short-termprofitsharingplan | |||||
| Subtotal | 461,108,215.84 | 3,632,098,676.80 | 321,148.45 | 3,601,783,917.38 | 491,744,123.71 |
(3)Detailsofdefinedcontributionplan?Applicable?NotApplicable
| Items | Openingbalance | Increase | Businesscombination | Decrease | Closingbalance |
| Basicendowmentinsurancepremium | 2,515,172.29 | 318,526,509.54 | 318,663,866.10 | 2,377,815.73 | |
| Unemploymentinsurancepremium | 110,221.87 | 13,144,550.45 | 13,155,671.96 | 99,100.36 | |
| Companyannuitypayment | |||||
| Subtotal | 2,625,394.16 | 331,671,059.99 | 331,819,538.06 | 2,476,916.09 |
Otherremarks?Applicable?NotApplicable
40.Taxesandratespayable?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
| VAT | 77,958,681.33 | 69,779,575.85 |
| Enterpriseincometax | 207,095,116.77 | 165,759,933.41 |
| Individualincometaxwithheldfortaxauthorities | 7,831,787.28 | 11,382,301.79 |
| Urbanmaintenanceandconstructiontax | 4,270,952.14 | 4,965,948.37 |
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| Items | Closingbalance | December31,2023 |
| Stampduty | 4,560,669.40 | 5,419,343.01 |
| Housingpropertytax | 1,712,961.19 | 920,459.64 |
| Landusetax | 1,172,145.07 | 1,171,426.83 |
| Educationsurcharge | 1,950,366.56 | 2,208,795.49 |
| Localeducationsurcharge | 1,253,690.54 | 1,337,860.38 |
| Others | 157,882.66 | 142,508.80 |
| Total | 307,964,252.94 | 263,088,153.57 |
OtherremarksNone
41.Otherpayables
(1)Details?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
| Dividendpayable | 296,927.48 | |
| Otherpayables | 772,207,599.54 | 810,149,750.80 |
| Total | 772,207,599.54 | 810,446,678.28 |
Otherremarks?Applicable?NotApplicable
(2)InterestpayableDetails?Applicable?NotApplicableSignificantinterestpayableoverduebutunpaid?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
(3)DividendpayableDetails?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
| Dividendofordinaryshares | 296,927.48 | |
| Dividendofpreferredshares/perpetualbondsclassifiedasequityinstrument | ||
| Subtotal | 296,927.48 |
Otherremarks,includingsignificantdividendpayablewithageoveroneyear
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None
(4)OtherpayablesDetails?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
| Securitydepositsandqualityguaranteedeposits | 98,816,063.54 | 109,763,535.31 |
| Paymentsforequipmentandconstruction | 38,515,786.01 | 37,825,417.59 |
| Paymentsforequitytransferandstoreacquisition | 231,858,172.22 | 221,460,641.53 |
| Repurchaseobligationofrestrictedshares | 3,764,535.58 | 42,161,726.90 |
| Houserentalfees | 82,472,357.36 | 64,754,297.97 |
| Temporaryreceiptspayable | 15,825,748.98 | 12,239,913.96 |
| Expensestobepaid | 55,389,229.50 | 46,225,919.25 |
| Others | 245,565,706.35 | 275,718,298.29 |
| Subtotal | 772,207,599.54 | 810,149,750.80 |
Significantotherpayableswithageoveroneyear?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
42.Liabilitiesheldforsale?Applicable?NotApplicable
43.Non-currentliabilitiesduewithinoneyear?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
| Long-termborrowingsduewithinoneyear | 61,525,796.80 | 103,484,354.30 |
| Bondspayableduewithinoneyear | 4,476,008.13 | |
| Leaseliabilitiesduewithinoneyear | 1,271,095,733.38 | 1,354,982,443.44 |
| Total | 1,337,097,538.31 | 1,458,466,797.74 |
OtherremarksNone
44.OthercurrentliabilitiesDetails?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
| OutputVATtoberecognized | 11,312,523.92 | 6,656,678.33 |
/
| Items | Closingbalance | December31,2023 |
| Total | 11,312,523.92 | 6,656,678.33 |
Currentperiodmovementsofshort-termbondspayable?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
45.Long-termborrowings
(1)Categoriesoflong-termborrowings?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
| Pledgedborrowings | 133,617,147.68 | |
| Total | 133,617,147.68 |
Remarksoncategoriesoflong-termborrowings:
None
(2)Analysisoflong-termborrowingsmaturitydates?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
| Dueondemandorwithinoneyear | 61,429,093.40 | 103,337,093.40 |
| 1-2years | 73,429,093.40 | |
| 2-5years | 36,000,000.00 | |
| Over5years | 24,000,000.00 | |
| Interest | 96,703.40 | 335,315.18 |
| Subtotal | 61,525,796.80 | 237,101,501.98 |
| Less:Long-termborrowingsduewithinoneyear | 61,525,796.80 | 103,484,354.30 |
| Long-termborrowingsduemorethanoneyear | 133,617,147.68 |
In2018,theCompanyborrowed784,000,000.00yuanfromChinaMerchantsBankCo.,Ltd.ChangshaBranchwithatermof7years,pledging91%ofitsequityinXinxingPharmacyasguarantee.Theclosingbalanceoftheprincipalis61,429,093.40yuanandtheinterestrateis4.99%,whichwasreducedfrom5.29%onAugust10,2022,andthebalancehasbeenreclassifiedascurrentliabilitiesduewithinoneyearasoftheperiod-end.In2021,theCompanyborrowed42,120,000.00yuanfromChinaMerchantsBankCo.,Ltd.ChangshaBranchwithatermof3years,pledging65%ofequityinJiangxiJianminheldbyJiangxiYifengPharmacyChainCo.,Ltd.(the“JiangxiYifeng”)forguarantee.Theborrowinghadbeenfullyrepaidasoftheperiod-end,andtheinterestratewas4.29%.OnAugust29,2022,theCompanyborrowed80,000,000.00yuanfromChinaConstructionBankCorporationChangdeBranchwithatermof7years,pledging51%ofitsequityinJiuzhitangMedicineasguarantee.The
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borrowinghadbeenfullyrepaidinadvanceduringthecurrentperiod,andtheinterestratewas4.15%.
46.Bondspayable
(1)Bondspayable?Applicable?NotApplicable
| Items | Closingbalance | Openingbalance |
| YifengConvertible | 1,601,308,876.07 | |
| Total | 1,601,308,876.07 |
(2)Currentperiodmovements(notincludingotherfinancialinstrumentssuchaspreferredshares/perpetualbondsclassifiedasfinancialliabilities)?Applicable?NotApplicable
| Items | Parvalue | Couponrate(%) | Issuingdate | Maturity | Amountoutstanding | Whetherdefault |
| YifengConvertible | 100.00 | 0.30-2.00 | March4,2024 | 6years | 1,797,432,000.00 | No |
| Subtotal | 1,797,432,000.00 |
(Continued)
| Items | Openingbalance | Currentperiodissuance | Parvalueinterest | Premium/Discountamortization | Currentperiodconversion | Transfertonon-currentliabilitiesduewithinoneyear | Closingbalance |
| YifengConvertible | 1,558,679,468.80 | 4,476,252.08 | 42,748,805.03 | 119,641.71 | 4,476,008.13 | 1,601,308,876.07 | |
| Subtotal | 1,558,679,468.80 | 4,476,252.08 | 42,748,805.03 | 119,641.71 | 4,476,008.13 | 1,601,308,876.07 |
(3)Remarksonconvertiblebonds?Applicable?NotApplicableAccountingtreatmentandjudgementbasisofconvertiblebonds?Applicable?NotApplicablePursuanttotheApprovaloftheChinaSecuritiesRegulatoryCommissionontheRegistrationofYifengPharmacyChainCo.,Ltd.’sPublicOfferingofConvertibleBondstoNon-SpecificObjects(CSRCApprovalNo.[2024]109),theCompanypubliclyissued17,974,320convertiblebondsonMarch4,2024,Eachbondhasaparvalueof100.00yuan,withatotalissuanceamountof1,797,432,000.00yuanandamaturityof6years.Thecouponrataare0.3%forthefirstyear,0.5%forthesecondyear,1.00%forthethirdyear,1.50%forthefourthyear,1.80%forthefifthyear,2.00%forthesixthyear.Interestispaidannually,andtheprincipalandfinalyear’sinterestarerepaidatmaturity.Theconvertiblebondsareclassifiedascompoundfinancialinstruments,comprisingbothafinancialliabilitycomponentandanequitycomponent.Initialmeasurementinvolvesdeterminingthefairvalueoftheliabilitycomponentanddeductingtheliabilitycomponent’sfairvaluefromthetotalfairvalueofthecompoundinstrumenttoderivetheequitycomponent’sfairvalue.Transactioncostsincurredduringtheissuanceareallocatedbetweentheliabilityandequitycomponentsbasedontheirproportionsofthetotalissuanceproceeds.Thecompanyhasissuedconvertiblebondstotaling1,797,432,000.00yuan,afterdeductingtheissuance
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expenseof17,169,690.20yuan,thefairvalueofliabilitycomponentof1,558,679,468.80yuanwasrecordedunderbondspayable,andthefairvalueofequitycomponentof221,582,841.00yuanwasrecordedunderotherequityinstrumentsasoftheissuingdate.AsstipulatedintherelevantregulationsandtheProspectusforYifengPharmacyChainCo.,Ltd.’sPublicOfferingofConvertibleCorporateBondstoNon-SpecificObjects,theconversionperiodfortheissuedconvertiblebondscommencedonSeptember9,2024,allowingconversionintotheCompany’sshares.Conversioneffectsofconversionin2024arereductioninbondspayableof119,397.76yuan,reductioninotherequityinstrumentsof16,642.46yuan.After4,096shareshavingbeenconverted,thesharecapitalwasincreasedby4,096.00yuan,thecapitalreserve(capitalpremium)wasincreasedby132,188.17yuanandthepaymentofroundingdifferencewas243.95yuan.
(4)OtherfinancialinstrumentsclassifiedasfinancialliabilitiesBasicinformationofotherfinancialinstrumentssuchaspreferredsharesorperpetualbondsoutstandingatthebalancesheetdate?Applicable?NotApplicableCurrentperiodmovementsoffinancialinstrumentssuchaspreferredsharesorperpetualbondsoutstandingatthebalancesheetdate?Applicable?NotApplicableOtherremarksonfinancialinstrumentsclassifiedasfinancialliabilities?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
47.Leaseliabilities?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
| Unpaidleasepayments | 2,471,525,773.56 | 2,295,870,058.36 |
| Unrecognizedfinancingexpenses | 158,778,318.51 | 90,359,746.56 |
| Total | 2,312,747,455.05 | 2,205,510,311.80 |
OtherremarksNone
48.Long-termpayablesDetails?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
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Long-termpayables
(1)Categoriesoflong-termpayables?Applicable?NotApplicableSpecialpayables
(2)Categoriesofspecialpayables?Applicable?NotApplicable
49.Long-termemployeebenefitspayable?Applicable?NotApplicable
50.Provisions?Applicable?NotApplicable
51.DeferredincomeDetails?Applicable?NotApplicable
| Items | Openingbalance | Increase | Businesscombination | Decrease | Closingbalance | Reasonsforbalance |
| Governmentgrants | 54,073,353.64 | 440,711.63 | 53,632,642.01 | Governmentgrants | ||
| Unrealizedgainsandlossesfromleaseback | 20,892.80 | 20,892.80 | Financelease | |||
| Total | 54,094,246.44 | 461,604.43 | 53,632,642.01 |
Otherremarks?Applicable?NotApplicable
52.Othernon-currentliabilities?Applicable?NotApplicable
53.Sharecapital?Applicable?NotApplicable
| Items | Openingbalance | Movements | Closingbalance | ||||
| Issueofnewshares | Bonusshares | Reservetransferredtoshares | Others | Subtotal | |||
| Totalshares | 1,010,579,797 | 202,115,959 | -263,068 | 201,852,891 | 1,212,432,688 | ||
OtherremarksPursuanttothe“PlanonProfitDistributionandConversionofCapitalReservetoShareCapitalof2023”deliberatedandapprovedatthe39thmeetingofthefourthsessionoftheBoardofDirectorsonApril26,2024,andtheresolutionof“ProposalofPlanonProfitDistributionandConversionofCapitalReservetoShareCapitalof2023”approvedattheshareholders’meetingof2023onMay20,2024,theCompanydistributedcashdividendof0.50yuan(taxinclusive)pershare,andincreased0.20sharepersharetoall
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shareholdersbyconvertingcapitalreserve,basedonthetotalsharecapitalof1,010,579,797sharesbeforetheimplementationoftheplan.Intotal,cashdividendof505,289,898.50yuanhasbeendistributed,and202,115,959shareshasbeenconverted.Aftertheimplementationoftheplan,thesharecapitalwasincreasedby202,115,959.00yuan,andthecapitalreserve(capitalpremium)wasdecreasedby202,115,959.00yuan.PursuanttotheapprovaloftheChinaSecuritiesRegulatoryCommission(CSRC),theCompanypubliclyissued17,974,320convertiblecorporatebondsonMarch4,2024,withaparvalueof100.00yuanperbondandatotalissuanceamountof1,797,432,000yuan.WiththeapprovaloftheShanghaiStockExchange(SSE),theabove-mentionedconvertiblebondscommencedtradingontheSSEonMarch27,2024,underthebondabbreviation“YifengConvertible”.TheconversionperiodcommencedonSeptember9,2024.AsofthecloseoftradingonDecember31,2024,acumulativetotalof4,096shareshadbeenconvertedfromthebonds,increasingtheCompany’sunrestrictedoutstandingsharesby4,096shares.Pursuanttothe“ProposalonRepurchaseandCancellationofPartofRestrictedSharesof2022”deliberatedandapprovedatthe39thmeetingofthefourthsessionoftheBoardofDirectorsandthe32ndmeetingofthefourthsessionoftheBoardofSupervisorsonApril26,2024,theCompanywasagreedtorepurchaseandcancel202,347sharesheldbygranteeswhohadresigned,beendowngraded,orfailedtomeetperformanceassessmentstandards.Pursuanttothe“ProposalonAdjustmentofQuantityandPriceofRepurchaseandCancellationofPartofRestrictedSharesof2022”deliberatedandapprovedatthe40thmeetingofthefourthsessionoftheBoardofDirectorsandthe33rdmeetingofthefourthsessionoftheBoardofSupervisorsonJune7,2024,thequantityofrestrictedsharestoberepurchasedandcanceledwasadjustedfrom202,347sharesto242,816shares,including:223,944shareswithpriceadjustedfrom17.58yuanpershareto14.23yuanpershare,aswellas,18,872shareswithpriceadjustedfrom18.95yuanpershareto15.38yuanpershare.Pursuanttothe“MeasuresfortheAdministrationofEquityIncentivesforListedCompanies”andthe“2022RestrictedShareIncentivePlanofYifengPharmacyChainCo.,Ltd.”,theCompanyrepurchasedandcanceledatotalof242,816restrictedsharesthathadbeengrantedbutfailedtomeettheunlockingconditions,withsharecapitaldecreasedby242,816.00yuanandcapitalreserve(sharepremium)decreasedby3,389,043.65yuan.Pursuanttothe“ProposalonRepurchaseandCancellationofPartofRestrictedSharesof2022”deliberatedandapprovedatthe5thmeetingofthefifthsessionoftheBoardofDirectorsandthe4thmeetingofthefifthsessionoftheBoardofSupervisorsonAugust29,2024,theCompanywasagreedtorepurchaseandcancel24,348sharesheldbygranteeswhohadresigned.Pursuanttothe“ProposalonAdjustmentofthePriceforRepurchaseandCancellationofPartofRestrictedSharesof2022”deliberatedandapprovedatthe8thmeetingofthefifthsessionoftheBoardofDirectorsandthe6thmeetingofthefifthsessionoftheBoardofSupervisorsonOctober14,2024,thepriceof19,488sharestoberepurchasedandcanceledwasadjustedfrom14.23yuanpershareto13.98yuanpershareasaresultoftheCompany’s2024interimprofitdistribution,aswellas,thepriceof4,860shareswas
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adjustedfrom15.38yuanpershareto15.13yuanpershare.Pursuanttothe“MeasuresfortheAdministrationofEquityIncentivesforListedCompanies”andthe“2022RestrictedShareIncentivePlanofYifengPharmacyChainCo.,Ltd.”,theCompanyrepurchasedandcanceledatotalof24,348restrictedsharesthathadbeengrantedbutfailedtomeettheunlockingconditions,withsharecapitaldecreasedby24,348.00yuanandcapitalreserve(sharepremium)decreasedby342,515.50yuan.
54.Otherequityinstruments
(1)Basicinformationofotherfinancialinstrumentssuchaspreferredsharesorperpetualbondsoutstandingasofthebalancesheetdate?Applicable?NotApplicable
(2)Currentperiodmovementsoffinancialinstrumentssuchaspreferredsharesorperpetualbondsoutstandingatthebalancesheetdate?Applicable?NotApplicable
| Items | Openingbalance | Increase | Decrease | Closingbalance | ||||
| Quantity | Carryingamount | Quantity | Carryingamount | Quantity | Carryingamount | Quantity | Carryingamount | |
| Convertiblebonds | 17,974,320 | 221,582,841.00 | 135,000 | 16,642.46 | 17,839,320 | 221,566,198.54 | ||
| Total | 17,974,320 | 221,582,841.00 | 135,000 | 16,642.46 | 17,839,320 | 221,566,198.54 | ||
InformationandreasonsofCurrentperiodmovementsoffinancialinstruments,accountingtreatmentandjudgementbasis?Applicable?NotApplicableOtherremarks?Applicable?NotApplicablePleaserefertosectionVII45ofnotestothefinancialstatementsfordetailsonotherequityinstruments.
55.Capitalreserve?Applicable?NotApplicable
| Items | Openingbalance | Increase | Decrease | Closingbalance |
| Share/capitalpremium | 3,715,633,370.50 | 35,585,257.49 | 205,847,518.15 | 3,545,371,109.84 |
| Othercapitalreserve | 126,514,511.30 | 14,075,129.20 | 35,433,766.40 | 105,155,874.10 |
| Total | 3,842,147,881.80 | 49,660,386.69 | 241,281,284.55 | 3,650,526,983.94 |
Otherremarks,includingcurrentperiodmovementsandreasonsofmovement
1)Currentincreaseofsharepremium:a.132,188.17yuanwasduetoconversionofconvertiblebondstoshares,pleaserefertosectionVII46ofnotestothefinancialstatementsfordetails;andb.19,302.92yuanwasduetochangesinequity(excludingnetprofitorloss)ofthesubsidiaryXinxingPharmacy;c.35,433,766.40yuanwasduetothevestingconditionssatisfactionforthesecondvestingperiodoftheinitialgrantandthefirstvestingperiodofthereservedgrantunderthe2022RestrictedStockIncentivePlan.
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2)Currentdecreaseofsharepremium:a.202,115,959.00yuanwasduetoconversionofcapitalreservetosharecapital,pleaserefertosectionVII53ofnotestothefinancialstatementsfordetails;andb.3,731,559.15yuanwasduetorepurchaseofrestrictedshares,pleaserefertosectionVII53ofnotestothefinancialstatementsfordetails.
3)Othercapitalreserveincreasedby14,075,129.20yuanduringthecurrentperiod,representingshare-basedpaymentrecognizedforrestrictedsharesissuedinthecurrentperiod;Othercapitalreservedecreasedby35,433,766.40yuanduringthecurrentperiodwasduetothevestingconditionssatisfactionforthesecondvestingperiodoftheinitialgrantandthefirstvestingperiodofthereservedgrantunderthe2022RestrictedStockIncentivePlan.
56.Treasuryshares?Applicable?NotApplicable
| Items | Openingbalance | Increase | Decrease | Closingbalance |
| Restrictedshares | 42,238,481.15 | 38,473,945.57 | 3,764,535.58 | |
| Total | 42,238,481.15 | 38,473,945.57 | 3,764,535.58 |
Otherremarks,includingcurrentperiodmovementsandreasonsofmovement
Currentdecreaseoftreasuryshareswasduetothereversaloftheunlockedrestrictedsharerepurchaseobligationrecognizedbefore.
57.Othercomprehensiveincome(OCI)?Applicable?NotApplicable
| Items | Openingbalance | Currentperiodcumulative | Closingbalance | |||||
| NetOCIaftertax | Less:OCIpreviouslyrecognizedbuttransferredtoretainedearningsinthecurrentperiod(attributabletoparentcompanyaftertax) | |||||||
| Currentperiodcumulativebeforeincometax | Less:OCIpreviouslyrecognizedbuttransferredtoprofitorlossinthecurrentperiod | Less:Incometaxexpenses | Attributabletoparentcompany | Attributabletonon-controllingshareholders | ||||
| Itemsnottobereclassifiedsubsequentlytoprofitorloss | 21,416,709.49 | -92,253,600.00 | -23,063,400.00 | -69,190,200.00 | -47,773,490.51 | |||
| Including:Changesinfairvalueofotherequityinstrumentinvestments | 21,416,709.49 | -92,253,600.00 | -23,063,400.00 | -69,190,200.00 | -47,773,490.51 | |||
| Total | 21,416,709.49 | -92,253,600.00 | -23,063,400.00 | -69,190,200.00 | -47,773,490.51 | |||
Otherremarks,includingadjustmentsofinitialrecognitionamountofhedgingitemsfromeffectiveportionofcashflowhedgingprofitsandlossesNone
58.Specialreserve?Applicable?NotApplicable
59.Surplusreserve?Applicable?NotApplicable
| Items | Openingbalance | Increase | Decrease | Closingbalance |
/
| Items | Openingbalance | Increase | Decrease | Closingbalance |
| Statutorysurplusreserve | 198,282,150.00 | 127,737,417.19 | 326,019,567.19 | |
| Discretionarysurplusreserve | ||||
| Reservefund | ||||
| Enterprisedevelopmentfund | ||||
| Others | ||||
| Total | 198,282,150.00 | 127,737,417.19 | 326,019,567.19 |
OtherremarksCurrentincreaseisduetheappropriationofsurplusreserveat10%ofthenetprofitgeneratedbytheparentcompanyinthecurrentperiod.
60.Undistributedprofit?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Balancebeforeadjustmentattheendofprecedingperiod | 4,774,244,419.42 | 3,720,020,128.04 |
| Add:Increaseduetoadjustment(orless:decrease) | -2,862,658.05 | |
| Openingbalanceafteradjustment | 4,774,244,419.42 | 3,717,157,469.99 |
| Add:Netprofitattributabletoownersoftheparentcompany | 1,528,576,669.36 | 1,411,985,024.41 |
| Less:Appropriationofstatutorysurplusreserve | 127,737,417.19 | 66,216,102.98 |
| Dividendpayableonordinaryshares | 808,404,059.75 | 288,681,972.00 |
| Closingbalance | 5,366,679,611.84 | 4,774,244,419.42 |
OtherremarksPursuanttotheProposalofProfitDistributionPlanof2023deliberatedandapprovedatthe2023AnnualGeneralMeetingofShareholdersonMay20,2024,theCompanydistributedcashdividendof0.5yuan(taxinclusive)persharetoallshareholdersbasedonthetotalsharecapitalof1,010,579,797shares,withcashdividenddistributedtotaled505,289,898.50yuan.PursuanttotheProposalofInterimProfitDistributionPlanof2024deliberatedandapprovedatthe3rdExtraordinaryGeneralMeetingofShareholdersonSeptember23,2024,theCompanydistributedcashdividendof0.25yuan(taxinclusive)persharetoallshareholdersbasedonthetotalsharecapitalof1,212,456,645shares,withcashdividenddistributedtotaled303,114,161.25yuan.
61.Operatingrevenue/Operatingcost
(1)DetailsofOperatingrevenue/Operatingcost?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative |
/
| Revenue | Cost | Revenue | Cost | |
| Mainoperations | 23,295,028,710.79 | 14,358,223,148.01 | 22,077,562,498.66 | 13,908,901,380.54 |
| Otheroperations | 767,125,990.94 | 50,087,391.41 | 510,664,903.56 | 48,697,474.20 |
| Total | 24,062,154,701.73 | 14,408,310,539.42 | 22,588,227,402.22 | 13,957,598,854.74 |
| Including:Revenuefromcontractswithcustomers | 24,030,302,853.49 | 14,377,292,681.84 | 22,558,356,331.72 | 13,934,497,823.10 |
(2)Breakdownofrevenue?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
(3)Informationrelatedtoperformanceobligations?Applicable?NotApplicable
(4)Transactionpriceallocatedtotheremainingperformanceobligations?Applicable?NotApplicable
(5)Significantchangesincontractsorsignificantadjustmentsontransactionprice?Applicable?NotApplicableOtherremarksNone
62.Taxesandsurcharges?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Urbanmaintenanceandconstructiontax | 37,336,086.96 | 35,465,407.90 |
| Educationsurcharge | 16,857,857.68 | 15,674,596.23 |
| Stampduty | 15,997,119.94 | 17,299,709.05 |
| Localeducationsurcharge | 11,329,392.74 | 10,450,521.34 |
| Housingpropertytax | 11,263,762.17 | 7,838,151.74 |
| Landusetax | 2,638,594.71 | 2,630,372.52 |
| Vehicleandvesselusetax | 62,719.30 | 30,243.57 |
| Total | 95,485,533.50 | 89,389,002.35 |
OtherremarksNone
63.Sellingexpenses?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative |
/
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Employeebenefits | 3,088,650,690.47 | 2,809,254,666.69 |
| Houserentandpropertyfees | 1,734,027,290.94 | 1,514,364,484.71 |
| Advertisingpromotionandsalesservicefees | 387,360,336.43 | 367,224,634.13 |
| Amortizationoflong-termprepayments | 264,925,013.28 | 181,370,295.07 |
| Utilitybills | 180,871,319.70 | 144,656,651.36 |
| Freightexpenses | 151,942,028.92 | 126,062,967.65 |
| Depreciationandamortization | 137,189,445.78 | 135,291,410.84 |
| Officeexpenses | 78,310,069.96 | 76,911,445.10 |
| Organizationexpenses | 44,224,968.70 | 41,632,349.38 |
| Transportationandbusinesstravellingexpenses | 44,939,647.14 | 41,539,549.10 |
| Others | 66,935,019.22 | 49,141,705.99 |
| Total | 6,179,375,830.54 | 5,487,450,160.02 |
OtherremarksNone
64.Administrativeexpenses?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Employeebenefits | 821,505,003.06 | 718,236,117.42 |
| Depreciation | 98,169,637.36 | 71,223,439.11 |
| Businessentertainmentexpenses | 66,399,850.58 | 54,370,528.07 |
| Consultingservicefees | 58,826,427.13 | 47,202,303.94 |
| Share-basedpayments | 14,075,129.20 | 41,169,112.30 |
| Amortizationofintangibleassets | 14,466,456.83 | 18,550,693.80 |
| Amortizationoflow-valueconsumables | 1,485,977.33 | 5,823,383.73 |
| Others | 7,953,259.64 | 5,849,281.11 |
| Total | 1,082,881,741.13 | 962,424,859.48 |
OtherremarksNone
65.R&Dexpenses?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| AmortizationofIntangibleassets | 17,228,254.96 | 14,110,402.04 |
/
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Material | 10,779,879.55 | 13,798,816.73 |
| Employeebenefits | 4,315,997.25 | 4,081,993.55 |
| Depreciation | 1,593,422.43 | 1,480,886.21 |
| Others | 18,258.06 | 77,886.38 |
| Total | 33,935,812.25 | 33,549,984.91 |
OtherremarksNone
66.Financialexpenses?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Interestexpense | 221,373,934.51 | 160,528,586.40 |
| Less:Interestincome | 72,647,179.88 | 93,286,397.47 |
| Financialinstitutecharges | 25,176,407.18 | 18,942,414.15 |
| Total | 173,903,161.81 | 86,184,603.08 |
OtherremarksNone
67.Otherincome?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative | Amountincludedinnon-recurringprofitorloss |
| Governmentgrantsrelatedtoassets | 440,711.63 | 401,359.91 | |
| Governmentgrantsrelatedtoincome | 14,883,427.59 | 43,933,681.43 | 14,883,427.59 |
| Taxdeductionandexemptionforsmall-scaletaxpayer | 36,909,089.03 | 25,856,801.13 | |
| Refundofhandlingfeesforwithholdingindividualincometax | 1,732,229.42 | 2,602,921.20 | |
| VATdeductionandexemptionforpovertyalleviationpersonnelandveterans | 3,770,699.40 | 3,340,149.99 | |
| Total | 57,736,157.07 | 76,134,913.66 | 14,883,427.59 |
OtherremarksNone
68.Investmentincome?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative |
/
| Investmentincomefromlong-termequityinvestmentsunderequitymethod | -901.40 | 316,574.96 |
| Investmentincomefromdisposaloflong-termequityinvestments | 1,539,528.62 | |
| Dividendincomefromotherequityinstrumentinvestments | 17,084,000.00 | 17,084,000.00 |
| Investmentincomefromfinancialinstruments | 89,506,157.27 | 24,958,558.90 |
| Including:Financialassetsclassifiedasatfairvaluethroughprofitorloss | 89,506,157.27 | 24,958,558.90 |
| Investmentincomefromdisposalofsubsidiaries | 13,074.67 | |
| Total | 108,128,784.49 | 42,372,208.53 |
OtherremarksNone
69.Gainsonnetexposuretohedgingrisk?Applicable?NotApplicable
70.Gainsonchangesinfairvalue?Applicable?NotApplicable
71.Creditimpairmentloss?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Baddebts | 2,154,986.62 | -4,537,333.68 |
| Total | 2,154,986.62 | -4,537,333.68 |
OtherremarksNone
72.Assetsimpairmentloss?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Inventorywrite-downloss | -83,569,695.03 | -72,633,545.68 |
| Provisionforimpairment | -18,826,781.82 | |
| Total | -102,396,476.85 | -72,633,545.68 |
OtherremarksNone
73.Gainsonassetdisposal?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative | Amountincludedinnon-recurringprofitorloss |
| Gainsondisposaloffixed | 2,203,836.52 | 1,460,232.34 | 2,203,836.52 |
/
| Items | Currentperiodcumulative | Precedingperiodcomparative | Amountincludedinnon-recurringprofitorloss |
| assets | |||
| GainsondisposalofRight-of-useassets | 47,734,974.15 | 40,358,701.38 | 47,734,974.15 |
| Total | 49,938,810.67 | 41,818,933.72 | 49,938,810.67 |
OtherremarksNone
74.Non-operatingrevenueDetails?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative | Amountincludedinnon-recurringprofitorloss |
| Governmentgrants[Note] | 47,326.50 | 595,167.68 | 47,326.50 |
| Compensation | 1,467,251.54 | 1,385,890.73 | 1,467,251.54 |
| Cashshortandover | 3,518,985.84 | 2,527,261.15 | 3,518,985.84 |
| Exemptedpayments | 504,898.05 | 1,109,567.13 | 504,898.05 |
| Confiscatoryincome | 1,676,173.16 | 1,475,505.71 | 1,676,173.16 |
| Gainsonscrappingoffixedassets | 253,165.26 | 1,025,366.12 | 253,165.26 |
| Others | 5,267,426.07 | 4,586,164.89 | 5,267,426.07 |
| Total | 12,735,226.42 | 12,704,923.41 | 12,735,226.42 |
Otherremarks?Applicable?NotApplicable
75.Non-operatingexpenditures?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative | Amountincludedinnon-recurringprofitorloss |
| Donationexpenditures | 4,238,125.03 | 6,406,521.25 | 4,238,125.03 |
| Penaltyexpendituresandoverduefines | 2,177,267.32 | 937,491.87 | 2,177,267.32 |
| Compensationexpenses | 17,090,281.63 | 3,132,097.54 | 17,090,281.63 |
| Lossesonscrappingofintangibleassets | 1,380,979.54 | 8,759,898.90 | 1,380,979.54 |
| Lossesonscrappingoffixedassets | 2,708,685.67 | 4,991,790.85 | 2,708,685.67 |
| Others | 6,516,850.59 | 5,668,317.26 | 6,516,850.59 |
| Total | 34,112,189.78 | 29,896,117.67 | 34,112,189.78 |
/
OtherremarksNone
76.Incometaxexpenses
(1)Details?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Currentperiodincometaxexpenses | 528,074,503.13 | 477,407,759.56 |
| Deferredincometaxexpenses | 1,590,592.73 | -20,744,785.07 |
| Total | 529,665,095.86 | 456,662,974.49 |
(2)Reconciliationofaccountingprofittoincometaxexpenses?Applicable?NotApplicable
| Items | Currentperiodcumulative |
| Profitbeforetax | 2,182,447,381.72 |
| Incometaxexpensesbasedontaxrateapplicabletotheparentcompany | 545,611,845.43 |
| Effectofdifferenttaxrateapplicabletosubsidiaries | -20,919,370.28 |
| Effectofpriorincometaxreconciliation | 2,437,872.61 |
| Effectofnon-taxableincome | -56,242,210.08 |
| Effectofnon-deductiblecosts,expensesandlosses | 34,798,124.71 |
| Effectofutilizationofdeductiblelossesnotpreviouslyrecognizedasdeferredtaxassets | -4,820,116.80 |
| Effectofdeducibletemporarydifferencesordeductiblelossesnotrecognizedasdeferredtaxassetsinthecurrentperiod | 28,798,950.27 |
| Incometaxexpenses | 529,665,095.86 |
Otherremarks?Applicable?NotApplicable
77.Othercomprehensiveincome?Applicable?NotApplicablePleaserefertosectionVII57ofnotestothefinancialstatementsfordetails.
78.Notestoitemsoftheconsolidatedcashflowstatement
(1)CashflowrelatedtooperatingactivitiesOthercashreceiptsrelatedtooperatingactivities?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Interestincome | 67,223,406.99 | 89,069,632.14 |
/
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Governmentgrants | 14,930,754.09 | 44,337,282.43 |
| Intercompanybalancesandothers | 205,993,955.83 | 216,292,968.05 |
| Depositsfornotes | 100,320,828.82 | |
| Total | 288,148,116.91 | 450,020,711.44 |
RemarksonothercashreceiptsrelatedtooperatingactivitiesNoneOthercashpaymentsrelatedtooperatingactivities?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Cashpaymentsrelatedtosellingexpenses | 1,131,693,734.17 | 986,561,162.17 |
| Cashpaymentsrelatedtoadministrativeexpenses | 138,349,803.28 | 113,245,496.85 |
| Cashpaymentsrelatedtofinancialexpenses | 25,176,407.18 | 18,942,414.15 |
| Depositsfornotes | 292,375,602.70 | |
| Intercompanybalancesandothers | 131,074,539.11 | 83,455,950.56 |
| Total | 1,718,670,086.44 | 1,202,205,023.73 |
RemarksonothercashpaymentsrelatedtooperatingactivitiesNone
(2)CashflowrelatedtoinvestingactivitiesSignificantcashreceiptsrelatedtoinvestingactivities?Applicable?NotApplicableSignificantcashpaymentsrelatedtoinvestingactivities?Applicable?NotApplicableOthercashreceiptsrelatedtoinvestingactivities?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Redemptionofwealthmanagementproductsandstructureddeposits | 15,933,200,000.00 | 3,660,000,000.00 |
| Receiptofinterestincomeonwealthmanagementproductsandstructureddeposits | 81,812,371.92 | 22,480,295.18 |
| Total | 16,015,012,371.92 | 3,682,480,295.18 |
RemarksonothercashreceiptsrelatedtoinvestingactivitiesNone
/
Othercashpaymentsrelatedtoinvestingactivities?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Paymentsforacquisitionofwealthmanagementproductsandstructureddeposits | 18,751,600,000.00 | 5,388,100,000.00 |
| Prepaidpaymentsforequitytransferandstoreacquisition | 25,385,007.48 | 15,650,000.00 |
| Total | 18,776,985,007.48 | 5,403,750,000.00 |
RemarksonothercashpaymentsrelatedtoinvestingactivitiesNone
(3)CashflowrelatedtofinancingactivitiesOthercashreceiptsrelatedtofinancingactivities?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Receiptofissuanceofconvertiblebonds | 1,783,932,000.00 | |
| Total | 1,783,932,000.00 |
RemarksonothercashreceiptsrelatedtofinancingactivitiesNoneOthercashpaymentsrelatedtofinancingactivities?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Paymentsforissuancecostsofconvertiblebonds | 4,123,275.09 | 1,230,000.00 |
| Paymentsforinterestarisingfromrepurchaseofequityincentive | 103,140.68 | 45,677.44 |
| Repurchaseofrestrictedshares | 3,998,723.15 | 3,521,408.00 |
| Paymentsforhouserent | 1,605,039,929.05 | 1,602,759,502.03 |
| Paymentsforacquisitionofnon-controllinginterest | 1,400,000.00 | |
| Total | 1,613,265,067.97 | 1,608,956,587.47 |
RemarksonothercashpaymentsrelatedtofinancingactivitiesNoneChangesinliabilitiesrelatedtofinancingactivities?Applicable?NotApplicable
| Items | Openingbalance | Increase | Decrease | Closingbalance | ||
| Changesincash | Changesinnon-cash | Changesincash | Changesinnon-cash | |||
| Short-termborrowings | 30,000,000.00 | 26,388.89 | 30,026,388.89 | |||
/
| Items | Openingbalance | Increase | Decrease | Closingbalance | ||
| Changesincash | Changesinnon-cash | Changesincash | Changesinnon-cash | |||
| Long-termborrowings(includinglong-termborrowingsduewithinoneyear) | 237,101,501.98 | 9,171,539.74 | 184,747,244.92 | 61,525,796.80 | ||
| Leaseliabilities(includingleaseliabilitiesduewithinoneyear) | 3,560,492,755.24 | 1,551,959,889.43 | 1,528,609,456.24 | 3,583,843,188.43 | ||
| Bondspayable(includingbondspayableduewithinoneyear) | 1,783,932,000.00 | 47,225,057.11 | 225,372,172.91 | 1,605,784,884.20 | ||
| Subtotal | 3,797,594,257.22 | 1,813,932,000.00 | 1,608,382,875.17 | 1,713,356,701.16 | 225,372,172.91 | 5,281,180,258.32 |
(4)Presentationofcashflowsonanetbasis?Applicable?NotApplicable
(5)Significantactivitiesnotinvolvingcashreceiptsandpayments?Applicable?NotApplicable
79.Supplementaryinformationtothecashflowstatement
(1)Supplementaryinformationtothecashflowstatement?Applicable?NotApplicable
| Supplementaryinformation | Currentperiodcumulative | Precedingperiodcomparative |
| (1)Reconciliationofnetprofittocashflowsfromoperatingactivities: | ||
| Netprofit | 1,652,782,285.86 | 1,580,930,945.44 |
| Add:Provisionforassetsimpairment | 102,396,476.85 | 72,633,545.68 |
| Provisionforcreditimpairment | -2,154,986.62 | 4,537,333.68 |
| Depreciationoffixedassets,oilandgasassets,productivebiologicalassets | 239,555,369.91 | 185,915,002.19 |
| Depreciationofright-of-useassets | 1,611,028,570.24 | 1,430,310,433.50 |
| Amortizationofintangibleassets | 32,025,308.07 | 32,592,861.43 |
| Amortizationoflong-termprepayments | 264,925,013.28 | 182,972,564.91 |
| Lossesondisposaloffixedassets,intangibleassetsandotherlong-termassets(Less:gains) | -49,938,810.67 | -41,818,933.72 |
| Fixedassetsretirementloss(Less:gains) | 3,836,499.95 | 12,726,323.63 |
| Lossesonchangesinfairvalue(Less:gains) | ||
| Financialexpenses(Less:gains) | 174,148,877.40 | 160,528,586.40 |
| Investmentlosses(Less:gains) | -108,128,784.49 | -42,372,208.53 |
| Decreaseofdeferredtaxassets(Less:increase) | 5,971,649.51 | -16,654,154.77 |
| Increaseofdeferredtaxliabilities(Less:decrease) | -18,486,671.31 | -4,090,630.30 |
| Decreaseofinventories(Less:increase) | -790,972,542.40 | -261,544,910.25 |
| Decreaseofoperatingreceivables(Less:increase) | -554,453,059.73 | -258,276,649.06 |
| Increaseofoperatingpayables(Less:decrease) | 1,593,308,427.28 | 1,542,951,573.07 |
/
| Supplementaryinformation | Currentperiodcumulative | Precedingperiodcomparative |
| Others | 65,423,461.40 | 42,399,112.30 |
| Netcashflowsfromoperatingactivities | 4,221,267,084.53 | 4,623,740,795.60 |
| (2)Significantinvestingandfinancingactivitiesnotrelatedtocashreceiptsandpayments: | ||
| Conversionofdebtintocapital | ||
| Convertiblebondsduewithinoneyear | ||
| Fixedassetsleasedinunderfinanceleases | ||
| (3)Netchangesincashandcashequivalents: | ||
| Cashattheendoftheperiod | 2,160,797,870.52 | 2,468,580,139.60 |
| Less:Cashatthebeginningoftheperiod | 2,468,580,139.60 | 2,918,199,648.45 |
| Add:Cashequivalentsattheendoftheperiod | ||
| Less:Cashequivalentsatthebeginningoftheperiod | ||
| Netincreaseofcashandcashequivalents | -307,782,269.08 | -449,619,508.85 |
(2)Netcashpaymentsfortheacquisitionofsubsidiaries?Applicable?NotApplicable
(3)Netcashreceiptforthedisposalofsubsidiaries?Applicable?NotApplicable
(4)Compositionofcashandcashequivalents?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
| 1)Cash | 2,160,797,870.52 | 2,468,580,139.60 |
| Including:Cashonhand | 308,745.22 | 232,721.88 |
| Cashinbankondemandforpayment | 2,109,513,471.76 | 2,468,347,417.72 |
| Othercashandbankbalancesondemandforpayment | 50,975,653.54 | |
| 2)Cashequivalents | ||
| Including:Bondinvestmentsmaturingwithinthreemonths | ||
| 3)Cashandcashequivalentsattheendoftheperiod | 2,160,797,870.52 | 2,468,580,139.60 |
| Including:Cashandcashequivalentsofparentcompanyorsubsidiarieswithuserestrictions |
(5)Cashandcashequivalentswithuserestrictions?Applicable?NotApplicable
| Items | Closingbalance | Openingbalance | Reasonsforuserestrictionsandforconsideredascashandcashequivalents |
| Cashandbankbalances | 33,766,112.57 | 6,188,730.80 | Raisedfunds |
/
| Items | Closingbalance | Openingbalance | Reasonsforuserestrictionsandforconsideredascashandcashequivalents |
| Subtotal | 33,766,112.57 | 6,188,730.80 |
(6)Cashandbankbalancesnotconsideredascashandcashequivalents?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 | Reasonsfornotconsideredascashandcashequivalents |
| Cashandbankbalances | 1,418,127,706.70 | 1,097,325,599.21 | Depositsandjudicialfrozenfunds |
| Subtotal | 1,418,127,706.70 | 1,097,325,599.21 |
Otherremarks?Applicable?NotApplicable
80.NotestoitemsoftheconsolidatedstatementofchangesinequityRemarksonotheritemsofclosingbalanceofpreviousyearandchangesinequity?Applicable?NotApplicable
81.Monetaryitemsinforeigncurrencies
(1)Monetaryitemsinforeigncurrencies?Applicable?NotApplicable
(2)Remarksonforeignoperations,includingsignificantforeignoperatingentities,mainoperatingplace,functionalcurrencies,basisforselectionoffunctionalcurrencies?Applicable?NotApplicable
82.Leases
(1)TheCompanyaslessee?Applicable?NotApplicable
1)PleaserefertosectionVII25ofnotestothefinancialstatementsfordetailsonright-of-useassets.
2)PleaserefertosectionV38ofnotestothefinancialstatementsfordetailsontheCompany’saccountingpoliciesonshort-termleasesandleasesforwhichtheunderlyingassetisoflowvalue.Theamountsofshort-termleasesandlow-valueassetleasesincludedintoprofitorlossare0yuan:
3)Profitorlossandcashflowsrelatedtoleases
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Interestexpensesonleaseliabilities | 136,441,501.14 | 134,822,305.16 |
| Incomefromsubleasingright-of-useassets | 29,800,701.50 | 29,620,319.17 |
| Totalcashoutflowsrelatedtoleases | 1,605,039,929.05 | 1,602,159,315.01 |
| Gainsorlossesarisingfromsaleandleasebacktransactions | 20,892.80 | 5,700.00 |
4)PleaserefertosectionXIIofnotestothefinancialstatementsfordetailsonmaturityanalysisoflease
/
liabilitiesandrelatedliquidityriskmanagement.Variableleasepaymentsincludedinprofitorlossbutnotincludedinthemeasurementofleaseliabilities?Applicable?NotApplicableRentexpensesonshort-termleasesandlow-valueassetleases?Applicable?NotApplicableSaleandleasebacktransactionsandjudgementbasis?Applicable?NotApplicableThetotalamountsofcashpaymentrelatedtoleaseare1,605,039,929.05yuan.(ExpressedinRenminbiYuan)
(2)TheCompanyaslessor
Operatinglease?Applicable?NotApplicable
| Items | Leaseincome | Including:Incomerelatingtovariableleasepaymentsnotincludedinthemeasurementoftheleaseliabilities |
| Leaseincome | 31,851,848.24 | |
| Total | 31,851,848.24 |
Assetsleasedoutunderoperatingleases
| Items | Closingbalance | December31,2023 |
| Fixedassets | 6,037,117.95 | 989,950.87 |
| Right-of-useassets | 77,281,020.49 | 54,805,254.65 |
| Subtotal | 83,318,138.44 | 55,795,205.52 |
Financelease?Applicable?NotApplicableReconciliationofundiscountedleasepaymentstonetinvestmentinthelease?Applicable?NotApplicableUndiscountedleasepaymentstobereceivedarisingfromleasesbasedontheleasecontractsignedwithlessee?Applicable?NotApplicable
| Remainingyears | Closingbalance | December31,2023 |
| Within1year | 775,665.00 | 275,625.00 |
| 1-2years | 545,977.50 | 275,625.00 |
| 2-3years | 500,040.00 | 45,937.50 |
| 3-4years | 500,040.00 |
/
| 4-5years | 500,040.00 | |
| Over5years | 562,050.00 | |
| Total | 3,383,812.50 | 597,187.50 |
(3)Recognitionofprofitsandlossesfromfinanceleasesalesasamanufacturerordealer?Applicable?NotApplicableOtherremarksNone
83.Dataresources?Applicable?NotApplicable
84.Others?Applicable?NotApplicableVIII.R&Dcosts
1.R&Dcosts?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Amortizationofintangibleassets | 17,228,254.96 | 14,110,402.04 |
| Directmaterials | 10,779,879.55 | 13,798,816.73 |
| Employeebenefits | 40,345,059.40 | 37,275,207.95 |
| Depreciation | 1,593,422.43 | 1,480,886.21 |
| Others | 18,258.06 | 77,886.38 |
| Total | 69,964,874.40 | 66,743,199.31 |
| Including:R&Dcoststobeexpensed | 33,935,812.25 | 33,549,984.91 |
| R&Dcoststobecapitalized | 36,029,062.15 | 33,193,214.40 |
OtherremarksNone
2.Developmentexpenditures?Applicable?NotApplicable
| Items | Openingbalance | Increase | Decrease | Closingbalance | ||
| Internaldevelopmentexpenditures | Others | Recognizedasintangibleassets | Transferredoutintoprofitorloss | |||
| ConstructionofO2OHealthcareCloudServicePlatform | 3,496,698.64 | 36,029,062.15 | 34,120,861.60 | 2,180,555.23 | 3,224,343.96 | |
| Total | 3,496,698.64 | 36,029,062.15 | 34,120,861.60 | 2,180,555.23 | 3,224,343.96 | |
/
CapitalizationofimportantR&Dprojects?Applicable?NotApplicableImpairmentofdevelopmentexpenditures?Applicable?NotApplicableOtherremarksNone
3.ImportantoutsourcedR&Dprojectsinprogress?Applicable?NotApplicableIX.Changesintheconsolidationscope
1.Businesscombinationnotundercommoncontrol?Applicable?NotApplicable
(1)Businesscombinationnotundercommoncontrolinthecurrentperiod?Applicable?NotApplicable
| Acquirees | Equityacquisitiondate | Equityacquisitioncost | Proportionofequityacquired(%) | Equityacquisitionmethod | Acquisitiondate |
| PingquanXinxinLimin | January2024 | 36,960,000.00 | 70.00 | Equitytransfer | January2024 |
| WochengXinxingAnkang | August2024 | 28,610,130.00 | 80.00 | August2024 | |
| BaodingXinxingKangshi | December2024 | 14,320,000.00 | 80.00 | December2024 | |
| NangongXinxingHuakang | May2024 | 22,400,000.00 | 70.00 | May2024 | |
| XingtaiXinxingKangze | June2024 | 18,200,000.00 | 70.00 | June2024 | |
| HandanXinxingKangheng | April2024 | 16,100,000.00 | 70.00 | April2024 | |
| HandanXinxingShengde | March2024 | 15,400,000.00 | 70.00 | March2024 | |
| JizeRenkangXinxing | March2024 | 5,390,000.00 | 70.00 | March2024 | |
| KunshanYifengHuasheng | September2024 | 12,600,000.00 | 70.00 | September2024 |
(Continued)
| Acquirees | Determinationbasisforacquisitiondate | Acquiree’sincomefromacquisitiondatetoperiodend | Acquiree’snetprofitfromacquisitiondatetoperiodend | Acquiree’scashflowsfromacquisitiondatetoperiodend | ||
| Netinflowsfromoperatingactivities | Netinflowsfrominvestingactivities | Netinflowsfromfinancingactivities | ||||
| PingquanXinxinLimin | Completethepropertyhandoverproceduresandachievesubstantialcontrolovertheacquirees | 64,827,014.80 | 2,575,219.93 | 4,524,311.37 | -1,165,109.83 | -2,997,456.00 |
| WochengXinxingAnkang | 23,726,326.94 | -1,123,415.68 | 4,151,350.43 | -135,865.87 | -3,994,736.99 | |
| BaodingXinxingKangshi | 9,666,930.93 | -1,461,971.13 | 3,555,509.73 | -167,095.09 | -3,275,712.32 | |
| NangongXinxingHuakang | 40,440,261.84 | -2,578,014.79 | 5,164,492.33 | -416,654.59 | -4,731,233.03 | |
| XingtaiXinxingKangze | 23,765,597.28 | -108,256.30 | 2,360,331.13 | -526,332.28 | -1,769,450.91 | |
/
| Acquirees | Determinationbasisforacquisitiondate | Acquiree’sincomefromacquisitiondatetoperiodend | Acquiree’snetprofitfromacquisitiondatetoperiodend | Acquiree’scashflowsfromacquisitiondatetoperiodend | ||
| Netinflowsfromoperatingactivities | Netinflowsfrominvestingactivities | Netinflowsfromfinancingactivities | ||||
| HandanXinxingKangheng | 28,368,404.49 | -795,908.18 | 2,831,039.92 | -1,003,965.75 | -1,805,676.40 | |
| HandanXinxingShengde | 22,598,317.54 | 574,730.28 | 1,629,091.27 | -574,222.46 | -1,029,054.81 | |
| JizeRenkangXinxing | 13,921,974.48 | -70,092.35 | 1,166,282.38 | -350,541.62 | -810,531.52 | |
| KunshanYifengHuasheng | 9,654,258.15 | -1,474,804.49 | 4,137,735.14 | -298,417.10 | -2,841,268.02 | |
(2)Combinationcostsandgoodwill?Applicable?NotApplicable
| Items | PingquanXinxinLimin | WochengXinxingAnkang | BaodingXinxingKangshi | NangongXinxingHuakang |
| Combinationcosts | 36,960,000.00 | 28,610,130.00 | 14,320,000.00 | 22,400,000.00 |
| Cash | 36,960,000.00 | 28,610,130.00 | 14,320,000.00 | 22,400,000.00 |
| Totalcombinationcosts | 36,960,000.00 | 28,610,130.00 | 14,320,000.00 | 22,400,000.00 |
| Less:Shareoffairvalueofnetidentifiableassetsacquired | 3,074,765.35 | 2,960,000.00 | 1,520,000.00 | 2,100,000.00 |
| Goodwill | 33,885,234.65 | 25,650,130.00 | 12,800,000.00 | 20,300,000.00 |
(Continued)
| Items | XingtaiXinxingKangze | HandanXinxingKangheng | HandanXinxingShengde | JizeRenkangXinxing |
| Combinationcosts | 18,200,000.00 | 16,100,000.00 | 15,400,000.00 | 5,390,000.00 |
| Cash | 18,200,000.00 | 16,100,000.00 | 15,400,000.00 | 5,390,000.00 |
| Totalcombinationcosts | 18,200,000.00 | 16,100,000.00 | 15,400,000.00 | 5,390,000.00 |
| Less:Shareoffairvalueofnetidentifiableassetsacquired | 1,820,000.00 | 1,610,000.00 | 1,400,000.00 | 539,000.00 |
| Goodwill | 16,380,000.00 | 14,490,000.00 | 14,000,000.00 | 4,851,000.00 |
(Continued)
| Items | KunshanYifengHuasheng |
| Combinationcosts | 12,600,000.00 |
| Cash | 12,600,000.00 |
| Totalcombinationcosts | 12,600,000.00 |
| Less:Shareoffairvalueofnetidentifiableassetsacquired | 700,000.00 |
| Goodwill | 11,900,000.00 |
Determinationmethodoffairvalueofcombinationcosts,contingentconsiderationsandtheirmovements?Applicable?NotApplicableCompletionofperformancecommitment?Applicable?NotApplicable
/
Mainreasonsforgoodwillinlargeamount?Applicable?NotApplicableLargeamountsofgoodwillareformedbythedifferencebetweenthecombinationcostsandsharesoffairvalueofnetidentifiableassetsacquiredOtherremarksInOctober2023,theCompany’ssubsidiaryXinxingPharmacy,MaLimin,GaoGuirong,andPingquanLiminPharmacyChainCo.,Ltd.signedthe“FrameworkAgreementontheRestructuringandAcquisitionofPingquanLiminPharmacyChainCo.,Ltd.”.Pursuanttotheagreement,thethirdpartywhichdesignatedandactuallycontrolledbyMaLiminandGaoGuirongcontributedcapitaltosetupPingquanXinxinLiminpriortoNovember15,2023,andcompletedtheinjectionoftheentirebusinessandrelatedassetsofPingquanLiminPharmacyChainCo.,Ltd.toPingquanXinxinLiminpriortoJanuary31,2024.Aftertheinjectionofbusinessandassets,theCompanyacquired70.00%ofequityofPingquanXinxinLiminheldbyMaLimin,GaoGuirongandthedesignatedthirdpartyataconsiderationof33.60millionyuan.TheequitytransferandregistrationinadministrationformarketregulationhadbeencompletedinJanuary2024.InJanuary2024,theCompany’ssubsidiaryXinxingPharmacy,MengLingyang,ZhaoHuisheng,WangFengying,LiShuqin,andHebeiWochengAnkangMedicineChainCo.,Ltd.signedthe“FrameworkAgreementontheRestructuringandAcquisitionofHebeiWochengAnkangMedicineChainCo.,Ltd.”.Pursuanttotheagreement,thethirdpartywhichdesignatedandactuallycontrolledbyMengLingyang,ZhaoHuisheng,WangFengying,andLiShuqincontributedcapitaltosetupWochengXinxingAnkangpriortoMarch15,2024,andcompletedtheinjectionoftheentirebusinessandrelatedassetsofHebeiWochengAnkangMedicineChainCo.,Ltd.toWochengXinxingAnkangpriortoApril30,2024.Aftertheinjectionofbusinessandassets,theCompanyacquired80.00%ofequityofWochengXinxingAnkangheldbyMengLingyang,ZhaoHuisheng,WangFengying,LiShuqinandthedesignatedthirdpartyataconsiderationof29.60millionyuan.TheequitytransferandregistrationinadministrationformarketregulationhadbeencompletedinAugust2024.InMay2024,theCompany’ssubsidiaryXinxingPharmacy,LiYonghui,GuoTao,LangYanxiuandBaodingBailixiKangshiMedicineSalesCo.,Ltd.signedthe“FrameworkAgreementontheRestructuringandAcquisitionofBaodingBailixiKangshiMedicineSalesCo.,Ltd.”.Pursuanttotheagreement,thethirdpartywhichdesignatedandactuallycontrolledbyLiYonghui,GuoTao,andLangYanxiucontributedcapitaltosetupBaodingXinxingKangshipriortoJune25,2024,andcompletedtheinjectionoftheentirebusinessandrelatedassetsofBaodingBailixiKangshiMedicineSalesCo.,Ltd.toPingquanXinliLiminpriortoFebruary28,2024.Aftertheinjectionofbusinessandassets,theCompanyacquired80.00%ofequityofBaodingXinxingKangshiheldbyLiYonghui,GuoTao,LangYanxiuandthedesignatedthirdpartyataconsiderationof15.20millionyuan.TheequitytransferandregistrationinadministrationformarketregulationhadbeencompletedinDecember2024.InNovember2023,theCompany’ssubsidiaryXinxingPharmacy,WangTao,LiuYinghui,andNangong
/
HuakangPharmacyChainCo.,Ltd.signedthe“FrameworkAgreementontheRestructuringandAcquisitionofNangongHuakangPharmacyChainCo.,Ltd.”.Pursuanttotheagreement,thethirdpartywhichdesignatedandactuallycontrolledbyWangTaoandLiuYinghuicontributedcapitaltosetupNangongXinxingHuakangpriortoDecember31,2023,andcompletedtheinjectionoftheentirebusinessandrelatedassetsofNangongHuakangPharmacyChainCo.,Ltd.toNangongXinxingHuakangpriortoFebruary28,2024.Aftertheinjectionofbusinessandassets,theCompanyacquired
70.00%ofequityofNangongXinxingHuakangheldbyWangTao,LiuYinghuiandthedesignatedthirdpartyataconsiderationof22.40millionyuan.TheequitytransferandregistrationinadministrationformarketregulationhadbeencompletedinMay2024.InMarch2024,theCompany’ssubsidiaryXinxingPharmacy,SongHongyunandHebeiKangzePharmaceuticalTradingChainCo.,Ltd.signedthe“FrameworkAgreementontheRestructuringandAcquisitionofHebeiKangzePharmaceuticalTradingChainCo.,Ltd.”.Pursuanttotheagreement,thethirdpartywhichdesignatedandactuallycontrolledbySongHongyuncontributedcapitaltosetupXingtaiXinxingKangzepriortoApril30,2024,andcompletedtheinjectionoftheentirebusinessandrelatedassetsofHebeiKangzePharmaceuticalTradingChainCo.,Ltd.toXingtaiXinxingKangzepriortoJune30,2024.Aftertheinjectionofbusinessandassets,theCompanyacquired70.00%ofequityofXingtaiXinxingKangzeheldbySongHongyunandthedesignatedthirdpartyataconsiderationof
18.20millionyuan.TheequitytransferandregistrationinadministrationformarketregulationhadbeencompletedinJune2024.InDecember2023,theCompany’ssubsidiaryXinxingPharmacy,TanHongen,ZhangChunpingandHandanKanghengBaixingPharmacyChainCo.,Ltd.signedthe“FrameworkAgreementontheRestructuringandAcquisitionofHandanKanghengBaixingPharmacyChainCo.,Ltd.”.Pursuanttotheagreement,thethirdpartywhichdesignatedandactuallycontrolledbyTanHongenandZhangChunpingcontributedcapitaltosetupHandanXinxingKanghengpriortoFebruary20,2024,andcompletedtheinjectionoftheentirebusinessandrelatedassetsofHandanKanghengBaixingPharmacyChainCo.,Ltd.toHandanXinxingKanghengpriortoMarch31,2024.Aftertheinjectionofbusinessandassets,theCompanyacquired70.00%ofequityofHandanXinxingKanghengheldbyTanHongen,ZhangChunpingandthedesignatedthirdpartyataconsiderationof16.10millionyuan.TheequitytransferandregistrationinadministrationformarketregulationhadbeencompletedinApril2024.InDecember2023,theCompany’ssubsidiaryXinxingPharmacy,LuDezhiandHandanShengdePharmacyMedicineChainCo.,Ltd.signedthe“FrameworkAgreementontheRestructuringandAcquisitionofHandanShengdePharmacyMedicineChainCo.,Ltd.”.Pursuanttotheagreement,thethirdpartywhichdesignatedandactuallycontrolledbyLuDezhicontributedcapitaltosetupHandanXinxingShengdepriortoJanuary31,2024,andcompletedtheinjectionoftheentirebusinessandrelatedassetsofHandanShengdePharmacyMedicineChainCo.,Ltd.toHandanXinxingShengdepriortoFebruary28,2024.Aftertheinjectionofbusinessandassets,theCompanyacquired70.00%ofequityofHandanXinxingShengdeheldbyLuDezhiandthedesignatedthirdpartyataconsiderationof15.40
/
millionyuan.TheequitytransferandregistrationinadministrationformarketregulationhadbeencompletedinMarch2024.InDecember2023,theCompany’ssubsidiaryXinxingPharmacy,QinWeiandJizeRenkangMedicineChainCo.,Ltd.signedthe“FrameworkAgreementontheRestructuringandAcquisitionofJizeRenkangMedicineChainCo.,Ltd.”.Pursuanttotheagreement,thethirdpartywhichdesignatedandactuallycontrolledbyQinWeicontributedcapitaltosetupJizeRenkangXinxingpriortoFebruary20,2024,andcompletedtheinjectionoftheentirebusinessandrelatedassetsofJizeRenkangMedicineChainCo.,Ltd.toJizeRenkangXinxingpriortoMarch31,2024.Aftertheinjectionofbusinessandassets,theCompanyacquired70.00%ofequityofJizeRenkangXinxingheldbyQinWeiandthedesignatedthirdpartyataconsiderationof5.39millionyuan.TheequitytransferandregistrationinadministrationformarketregulationhadbeencompletedinMarch2024.InMarch2024,theCompany’ssubsidiaryJiangsuYifeng,DaiYukuai,WangXinliandKunshanHuashengPharmacyChainCo.,Ltd.signedthe“FrameworkAgreementontheEquityTransferofKunshanHuashengPharmacyChainCo.,Ltd.”.Pursuanttotheagreement,JiangsuYifengacquired
70.00%ofequityofKunshanHuashengPharmacyChainCo.,Ltd.heldbyDaiYukuaiandWangXinliattheconsiderationof12.60millionyuan.TheequitytransferandregistrationinadministrationformarketregulationhadbeencompletedinSeptember2024,anditsnamehasbeenchangedtoKunshanYifengHuashengPharmacyChainCo.,Ltd.
(3)Acquisition-dateidentifiableassetsandliabilitiesofacquirees?Applicable?NotApplicable
| Items | PingquanXinxinLimin | WochengXinxingAnkang | BaodingXinxingKangshi | |||
| Acquisition-datefairvalue | Acquisition-datecarryingamount | Acquisition-datefairvalue | Acquisition-datecarryingamount | Acquisition-datefairvalue | Acquisition-datecarryingamount | |
| Assets | 14,434,604.76 | 14,434,604.76 | 3,700,000.00 | 3,700,000.00 | 1,900,000.00 | 1,900,000.00 |
| Cashandbankbalances | 25,339.05 | 25,339.05 | ||||
| Receivables | 83,694.34 | 83,694.34 | ||||
| Otherreceivables | 132,105.90 | 132,105.90 | 3,700,000.00 | 3,700,000.00 | 1,900,000.00 | 1,900,000.00 |
| Advancespaid | ||||||
| Inventories | 10,096,882.58 | 10,096,882.58 | ||||
| Fixedassets | ||||||
| Right-of-useassets | 3,415,019.75 | 3,415,019.75 | ||||
| Intangibleassets | ||||||
| Long-termprepayments | ||||||
| Deferredtaxassets | 681,563.14 | 681,563.14 | ||||
| Otherassets | ||||||
| Liabilities | 10,042,082.83 | 10,042,082.83 | ||||
/
| Items | PingquanXinxinLimin | WochengXinxingAnkang | BaodingXinxingKangshi | |||
| Acquisition-datefairvalue | Acquisition-datecarryingamount | Acquisition-datefairvalue | Acquisition-datecarryingamount | Acquisition-datefairvalue | Acquisition-datecarryingamount | |
| Accountspayable | 359,972.95 | 359,972.95 | ||||
| Advancesreceived | 150.30 | 150.30 | ||||
| Employeebenefitspayable | 205,298.43 | 205,298.43 | ||||
| Taxesandratespayable | 600.02 | 600.02 | ||||
| Otherpayables | 5,959,027.56 | 5,959,027.56 | ||||
| Leaseliabilities | 2,663,278.63 | 2,663,278.63 | ||||
| Deferredtaxliabilities | 853,754.94 | 853,754.94 | ||||
| Otherliabilities | ||||||
| Netassets | 4,392,521.93 | 4,392,521.93 | 3,700,000.00 | 3,700,000.00 | 1,900,000.00 | 1,900,000.00 |
| Less:Non-controllinginterest | 1,317,756.58 | 1,317,756.58 | 740,000.00 | 740,000.00 | 380,000.00 | 380,000.00 |
| Netassetsacquired | 3,074,765.35 | 3,074,765.35 | 2,960,000.00 | 2,960,000.00 | 1,520,000.00 | 1,520,000.00 |
(Continued)
| Items | NangongXinxingHuakang | XingtaiXinxingKangze | HandanXinxingKangheng | |||
| Acquisition-datefairvalue | Acquisition-datecarryingamount | Acquisition-datefairvalue | Acquisition-datecarryingamount | Acquisition-datefairvalue | Acquisition-datecarryingamount | |
| Assets | 3,000,000.00 | 3,000,000.00 | 2,600,000.00 | 2,600,000.00 | 2,300,000.00 | 2,300,000.00 |
| Cashandbankbalances | ||||||
| Receivables | ||||||
| Otherreceivables | 3,000,000.00 | 3,000,000.00 | 2,600,000.00 | 2,600,000.00 | 2,300,000.00 | 2,300,000.00 |
| Advancespaid | ||||||
| Inventories | ||||||
| Fixedassets | ||||||
| Right-of-useassets | ||||||
| Intangibleassets | ||||||
| Long-termprepayments | ||||||
| Deferredtaxassets | ||||||
| Otherassets | ||||||
| Liabilities | ||||||
| Accountspayable | ||||||
| Advancesreceived | ||||||
| Employeebenefitspayable | ||||||
| Taxesandratespayable | ||||||
| Otherpayables | ||||||
/
| Items | NangongXinxingHuakang | XingtaiXinxingKangze | HandanXinxingKangheng | |||
| Acquisition-datefairvalue | Acquisition-datecarryingamount | Acquisition-datefairvalue | Acquisition-datecarryingamount | Acquisition-datefairvalue | Acquisition-datecarryingamount | |
| Leaseliabilities | ||||||
| Deferredtaxliabilities | ||||||
| Otherliabilities | ||||||
| Netassets | 3,000,000.00 | 3,000,000.00 | 2,600,000.00 | 2,600,000.00 | 2,300,000.00 | 2,300,000.00 |
| Less:Non-controllinginterest | 900,000.00 | 900,000.00 | 780,000.00 | 780,000.00 | 690,000.00 | 690,000.00 |
| Netassetsacquired | 2,100,000.00 | 2,100,000.00 | 1,820,000.00 | 1,820,000.00 | 1,610,000.00 | 1,610,000.00 |
(Continued)
| Items | HandanXinxingShengde | JizeRenkangXinxing | KunshanYifengHuasheng | |||
| Acquisition-datefairvalue | Acquisition-datecarryingamount | Acquisition-datefairvalue | Acquisition-datecarryingamount | Acquisition-datefairvalue | Acquisition-datecarryingamount | |
| Assets | 2,000,000.00 | 2,000,000.00 | 770,000.00 | 770,000.00 | 5,863,082.99 | 5,863,082.99 |
| Cashandbankbalances | 305,668.43 | 305,668.43 | ||||
| Receivables | 1,361,582.71 | 1,361,582.71 | ||||
| Otherreceivables | 2,000,000.00 | 2,000,000.00 | 770,000.00 | 770,000.00 | 514,893.05 | 514,893.05 |
| Advancespaid | 979,684.12 | 979,684.12 | ||||
| Inventories | 2,701,254.68 | 2,701,254.68 | ||||
| Fixedassets | ||||||
| Right-of-useassets | ||||||
| Intangibleassets | ||||||
| Long-termprepayments | ||||||
| Deferredtaxassets | ||||||
| Otherassets | ||||||
| Liabilities | 4,863,082.99 | 4,863,082.99 | ||||
| Accountspayable | 562,033.73 | 562,033.73 | ||||
| Advancesreceived | ||||||
| Employeebenefitspayable | 321,148.45 | 321,148.45 | ||||
| Taxesandratespayable | 225,630.46 | 225,630.46 | ||||
| Otherpayables | 3,754,270.35 | 3,754,270.35 | ||||
| Leaseliabilities | ||||||
| Deferredtaxliabilities | ||||||
| Otherliabilities | ||||||
| Netassets | 2,000,000.00 | 2,000,000.00 | 770,000.00 | 770,000.00 | 1,000,000.00 | 1,000,000.00 |
| Less:Non-controllinginterest | 600,000.00 | 600,000.00 | 231,000.00 | 231,000.00 | 300,000.00 | 300,000.00 |
| Netassetsacquired | 1,400,000.00 | 1,400,000.00 | 539,000.00 | 539,000.00 | 700,000.00 | 700,000.00 |
/
FairvaluedeterminationmethodonidentifiableassetsandliabilitiesThefairvalueofidentifiableassetsandliabilitiesisdeterminedbasedon“ValueConsultingReportontheOperatingAssetGroupsof55RetailPharmaciesand2ClinicsOwnedbyPingquanLiminPharmacyChainCo.,Ltd.ProposedtobeAcquiredbyShijiazhuangXinxingPharmacyChainCo.,Ltd.”(JingKunPingZiZi[2023]No.0172);“ValueConsultingReportontheOperatingAssetGroupsof67RetailPharmaciesOwnedbyNangongHuakangPharmacyChainCo.,Ltd.ProposedtobeAcquiredbyShijiazhuangXinxingPharmacyChainCo.,Ltd.”(JingKunPingZiZi[2023]No.0175);“ValueConsultingReportontheOperatingAssetGroupsof35RetailPharmaciesOwnedbyHandanKanghengBaixingPharmacyChainCo.,Ltd.ProposedtobeAcquiredbyShijiazhuangXinxingPharmacyChainCo.,Ltd.”(JingKunPingZiZi[2023]No.0177)and“ValueConsultingReportontheOperatingAssetGroupsof35RetailPharmaciesOwnedbyHandanShengdePharmacyMedicineChainCo.,Ltd.ProposedtobeAcquiredbyShijiazhuangXinxingPharmacyChainCo.,Ltd.”(JingKunPingZiZi[2023]No.0179).ContingentliabilitiesofacquireesassumedinbusinesscombinationNoneOtherremarksNone
(4)Gains/LossesonfairvalueremeasurementofequityheldbeforetheacquisitiondateWhetherthereisatransactionthatachievescorporatemergerthroughmultipletransactionsstepbystepandobtainscontrolrightswithinthereportingperiod?Applicable?NotApplicable
(5)Combinationcostsorfairvalueofacquiree’sidentifiableassets/liabilitiesfailedtobereasonablydeterminedattheacquisitiondateorattheendofcurrentperiod?Applicable?NotApplicable
(6)Otherremarks?Applicable?NotApplicable
2.Businesscombinationundercommoncontrol?Applicable?NotApplicable
3.Reverseacquisition?Applicable?NotApplicable
4.DisposalofsubsidiariesOne-timedisposalleadingtolossofcontroloverasubsidiary?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
/
Disposalofsubsidiariesinstagesleadingtolossofcontrolinthecurrentperiod?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
5.ChangesintheconsolidationscopeduetootherreasonsRemarksonchangesintheconsolidationscopeduetootherreasons?Applicable?NotApplicable
1.Entitiesbroughtintotheconsolidationscope
| Nameofentities | Equityacquisitionmethod | Equityacquisitiondate | Capitalcontribution | Proportionofcapitalcontribution(%) |
| BaodingXinxingMedicalHealthManagementCo.,Ltd. | Establishment | July2024 | 30,000,000.00 | 100.00%[Note1] |
| TangshanYifengXinxingPharmacyCo.,Ltd. | Establishment | May2024 | 70.00%[Note2] | |
| HunanYifengHengyuanMedicineCo.,Ltd. | Establishment | February2024 | 100.00%[Note3] | |
| JiangsuYifengHengyuanMedicineCo.,Ltd. | Establishment | January2024 | 100.00%[Note4] | |
| JiangsuJiuzhouRuizeMedicineCo.,Ltd. | Establishment | April2024 | 10,000,000.00 | 100.00%[Note5] |
| XianningYifengPharmacyChainCo.,Ltd. | Establishment | August2024 | 100.00%[Note6] | |
| JingmenYifengPharmacyChainCo.,Ltd. | Establishment | August2024 | 100.00%[Note7] | |
| JiangxiJiuzhitangPharmacyChainCo.,Ltd. | Establishment | March2024 | 1,000,000.00 | 100.00%[Note8] |
| HunanYifengCoreTechnologyCo.,Ltd. | Establishment | November2024 | 100.00% | |
| JinkangMedicalHealthIndustry(Hainan)Co.,Ltd. | Establishment | April2024 | 1,000,000.00 | 100.00%[Note9] |
| NanjingJinkangMedicalManagementCo.,Ltd. | Establishment | May2024 | 1,000,000.00 | 100.00%[Note10] |
| DongtaiJinkangMedicalManagementCo.,Ltd. | Establishment | November2024 | 70.00%[Note10] | |
| HunanJinkangMedicalIndustryManagementCo.,Ltd. | Establishment | May2024 | 1,000,000.00 | 100.00%[Note11] |
| YouxianJinkangMedicalIndustryManagementCo.,Ltd. | Establishment | November2024 | 100.00%[Note11] | |
| ShuangfengJinkangMedicalIndustryManagementCo.,Ltd. | Establishment | October2024 | 100.00%[Note11] | |
| ZhuzhouJinkangMedicalIndustryManagementCo.,Ltd. | Establishment | July2024 | 10,000.00 | 100.00%[Note11] |
| JinkangMedicalIndustryManagement | Establishment | June2024 | 30,000.00 | 100.00%[Note11] |
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| Nameofentities | Equityacquisitionmethod | Equityacquisitiondate | Capitalcontribution | Proportionofcapitalcontribution(%) |
| Co.,Ltd.,ChangqingStreet,LouxingDistrict,LoudiCity | ||||
| GuangzhouJinkangMedicalHealthIndustryCo.,Ltd. | Establishment | May2024 | 100.00%[Note12] | |
| GuangzhouGangqianJinkangMedicalHealthIndustryCo.,Ltd. | Establishment | September2024 | 100.00%[Note12] | |
| GuangzhouYiliJinkangMedicalHealthIndustryCo.,Ltd. | Establishment | July2024 | 100.00%[Note12] | |
| GuangzhouKangliJinkangMedicalHealthIndustryCo.,Ltd. | Establishment | June2024 | 100.00%[Note12] | |
| JiangxiJinkangMedicalManagementCo.,Ltd. | Establishment | May2024 | 100.00%[Note13] | |
| NanchangFengluJinkangClinicCo.,Ltd. | Establishment | December2024 | 100.00%[Note13] | |
| NanchangXiangxieJinkangMedicalManagementCo.,Ltd. | Establishment | June2024 | 100.00%[Note13] | |
| NanchangYuechengJinkangMedicalManagementCo.,Ltd. | Establishment | June2024 | 100.00%[Note13] | |
| HubeiJinkangMedicalHealthCo.,Ltd. | Establishment | May2024 | 100.00%[Note14] | |
| JinkangClinicCo.,Ltd.,Yunheyuan,QiaokouDistrict,WuhanCity | Establishment | November2024 | 100.00%[Note14] | |
| JinkangIntegratedTraditionalChineseandWesternMedicineClinicCo.,Ltd.,Qingniancheng,JiangxiaDistrict,WuhanCity | Establishment | June2024 | 100.00%[Note14] | |
| WuhanQingshiJinkangMedicalHealthCo.,Ltd. | Establishment | June2024 | 100.00%[Note14] | |
| WuhanGuanhuJingzhuJinkangMedicalHealthCo.,Ltd. | Establishment | June2024 | 100.00%[Note14] | |
| ShijiazhuangJinkangMedicalIndustryDevelopmentCo.,Ltd. | Establishment | May2024 | 1,000,000.00 | 100.00%[Note15] |
| YanshanJinkangMedicalServiceCo.,Ltd.,FengrunDistrict,TangshanCity | Establishment | December2024 | 70.00%[Note15] | |
| ShijiazhuangZhandeJinkangMedicalServiceCo.,Ltd. | Establishment | December2024 | 100.00%[Note15] | |
| ShijiazhuangNuodianJinkangMedicalServiceCo.,Ltd. | Establishment | December2024 | 100.00%[Note15] |
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| Nameofentities | Equityacquisitionmethod | Equityacquisitiondate | Capitalcontribution | Proportionofcapitalcontribution(%) |
| ChenkangJinkangMedicalServiceCo.,Ltd.,Chang'anDistrict,ShijiazhuangCity | Establishment | November2024 | 30,000.00 | 100.00%[Note15] |
| ShangyuJinkangMedicalServiceCo.,Ltd.,Chang'anDistrict,ShijiazhuangCity | Establishment | November2024 | 30,000.00 | 100.00%[Note15] |
| HengshuiJinkangMedicalCo.,Ltd. | Establishment | June2024 | 100,000.00 | 100.00%[Note15] |
Note1:TheCompanyholds91%ofequityofXinxingPharmacy,andXinxingPharmacyholds100%ofequityofBaodingXinxingMedicalHealthManagementCo.,Ltd.Note2:TheCompanyholds91%ofequityofHebeiXinxingPharmacyChainCo.,Ltd.,andHebeiXinxingPharmacyChainCo.,Ltd.holds70%ofequityofTangshanYifengXinxingPharmacyCo.,Ltd.Note3:TheCompanyholds100%ofequityofHunanYifengMedicine,HunanYifengMedicineholds100%oftheequityofHengxiutangPharmaceutical,andHengxiutangPharmaceuticalholds100%oftheequityofHunanYifengHengyuanMedicineCo.,Ltd.Note4:TheCompanyholds100%ofequityofJiangsuYifeng,JiangsuYifengholds100%ofequityofJiangsuYifengMedicineCo.,Ltd.,andJiangsuYifengMedicineCo.,Ltd.holds100%ofequityofJiangsuYifengHengyuanMedicineCo.,Ltd.Note5:TheCompanyholds100%ofequityofJiangsuYifeng,JiangsuYifengholds51%ofequityofJiuzhouMedicine,andJiuzhouMedicineholds100%ofequityofJiangsuJiuzhouRuizeMedicineCo.,Ltd.Note6:TheCompanyholds100%ofequityofHubeiYifengPharmacyChainCo.,Ltd.,HubeiYifengPharmacyChainCo.,Ltd.holds80%ofequityofChibiKanghua,andChibiKanghuaholds100%ofequityofXianningYifengPharmacyChainCo.,Ltd.Note7:TheCompanyholds100%ofequityofHubeiYifengPharmacyChainCo.,Ltd.,HubeiYifengPharmacyChainCo.,Ltd.holds100%ofequityofJingmenYifengPharmacyChainCo.,Ltd.Note8:TheCompanyholds51%ofequityofJiuzhitangMedicine,JiuzhitangMedicineholds100%ofequityofHunanJiuzhitangRetailChainCo.,Ltd.,andHunanJiuzhintangRetailChainCo.,Ltd.holds100%ofequityofJiangxiJiuzhitangPharmacyChainCo.,Ltd.Note9:TheCompanyholds100%ofequityofHainanYifengInternetHospitalCo.,Ltd.,HainanYifengInternetHospitalCo.,Ltd.holds100%ofequityofJinkangMedicalHealthIndustry(Hainan)Co.,Ltd.Note10:TheCompanyholds100%ofequityofHainanYifengInternetHospitalCo.,Ltd.,HainanYifengInternetHospitalCo.,Ltd.holds100%ofequityofJinkangMedicalHealthIndustry(Hainan)Co.,Ltd.,JinkangMedicalHealthIndustry(Hainan)Co.,Ltd.holds100%ofequityofNanjingJinkangMedicalManagementCo.,Ltd.,andNanjingJinkangMedicalManagementCo.,Ltd.holds70%ofequityofDongtaiJinkangMedicalManagementCo.,Ltd.
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Note11:TheCompanyholds100%ofequityofHainanYifengInternetHospitalCo.,Ltd.,HainanYifengInternetHospitalCo.,Ltd.holds100%ofequityofJinkangMedicalHealthIndustry(Hainan)Co.,Ltd.,JinkangMedicalHealthIndustry(Hainan)Co.,Ltd.holds100%ofequityofHunanJinkangMedicalIndustryManagementCo.,Ltd.,HunanJinkangMedicalIndustryManagementCo.,Ltd.holds100%ofequityofYouxianJinkangMedicalIndustryManagementCo.,Ltd.,100%ofequityofShuangfengJinkangMedicalIndustryManagementCo.,Ltd.,100%ofequityofZhuzhouJinkangMedicalIndustryManagementCo.,Ltd.,and100%ofequityofJinkangMedicalIndustryManagementCo.,Ltd.,ChangqingStreet,LouxiDistrict,LoudiCity.Note12:TheCompanyholds100%ofequityofHainanYifengInternetHospitalCo.,Ltd.,HainanYifengInternetHospitalCo.,Ltd.holds100%ofequityofJinkangMedicalHealthIndustry(Hainan)Co.,Ltd.,JinkangMedicalHealthIndustry(Hainan)Co.,Ltd.holds100%ofequityofGuangzhouJinkangMedicalHealthIndustryCo.,Ltd.,GuangzhouJinkangMedicalHealthIndustryCo.,Ltd.holds100%ofequityofGuangzhouGangqianJinkangMedicalHealthIndustryCo.,Ltd.,100%ofequityofGuangzhouYiliJinkangMedicalHealthIndustryCo.,Ltd.,and100%ofequityofGuangzhouKangliJinkangMedicalHealthIndustryCo.,Ltd.Note13:TheCompanyholds100%ofequityofHainanYifengInternetHospitalCo.,Ltd.,HainanYifengInternetHospitalCo.,Ltd.holds100%ofequityofJinkangMedicalHealthIndustry(Hainan)Co.,Ltd.,JinkangMedicalHealthIndustry(Hainan)Co.,Ltd.holds100%ofequityofJiangxiJinkangMedicalManagementCo.,Ltd.,JiangxiJinkangMedicalManagementCo.,Ltd.holds100%ofequityofNanchangFengluJinkangClinicCo.,Ltd.,100%ofequityofNanchangXiangxieJinkangMedicalManagementCo.,Ltd.and100%ofequityofNanchangYuechengJinkangMedicalManagementCo.,Ltd.Note14:TheCompanyholds100%ofequityofHainanYifengInternetHospitalCo.,Ltd.,HainanYifengInternetHospitalCo.,Ltd.holds100%ofequityofJinkangMedicalHealthIndustry(Hainan)Co.,Ltd.,JinkangMedicalHealthIndustry(Hainan)Co.,Ltd.holds100%ofequityofHubeiJinkangMedicalHealthCo.,Ltd.,HubeiJinkangMedicalHealthCo.,Ltd.holds100%ofequityofJinkangClinicCo.,Ltd.,Yunheyuan,QiaokouDistrict,WuhanCity,100%ofequityofJinkangIntegratedTraditionalChineseandWesternMedicineClinicCo.,Ltd.,Qingniancheng,JiangxiaDistrict,WuhanCity,100%ofequityofWuhanQingshiJinkangMedicalHealthCo.,Ltd.,and100%ofequityofWuhanGuanhuJingzhuJinkangMedicalHealthCo.,Ltd.Note15:TheCompanyholds100%ofequityofHainanYifengInternetHospitalCo.,Ltd.,HainanYifengInternetHospitalCo.,Ltd.holds100%ofequityofJinkangMedicalHealthIndustry(Hainan)Co.,Ltd.,JinkangMedicalHealthIndustry(Hainan)Co.,Ltd.holds100%ofequityofShijiazhuangJinkangMedicalIndustryDevelopmentCo.,Ltd.,ShijiazhuangJinkangMedicalIndustryDevelopmentCo.,Ltd.holds70%ofequityofYanshanJinkangMedicalServiceCo.,Ltd.,FengrunDistrict,TangshanCity,100%ofequityofShijiazhuangZhandeJinkangMedicalServiceCo.,Ltd.,100%ofequityofShijiazhuangNuodianJinkangMedicalServiceCo.,Ltd.,100%ofequityofChenkangJinkangMedical
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ServiceCo.,Ltd.,Chang'anDistrict,ShijiazhuangCity,100%ofequityofShangyuJinkangMedicalServiceCo.,Ltd.,Chang'anDistrict,ShijiazhuangCityand100%ofequityofHengshuiJinkangMedicalCo.,Ltd.
2.Entitiesexcludedfromtheconsolidationscope
| Nameofentities | Equitydisposalmethod | Equitydisposaldate | Disposal-datenetassets | Netprofitfromtheperiodbeginningtothedisposaldate |
| NanjingXinzhuzhangPharmacyCo.,Ltd. | Cancellation | February2024 | -3.32 | |
| ShanghaiYifengXulianPharmacyCo.,Ltd. | Cancellation | April2024 | -4,223.40 | |
| ShanghaiYifengXinchuanPharmacyCo.,Ltd. | Cancellation | November2024 | -147,440.75 | |
| ShanghaiYifengJinchuanPharmacyCo.,Ltd. | Cancellation | November2024 | -245,710.23 | |
| ShanghaiYifengGaofangPharmacyCo.,Ltd. | Cancellation | May2024 | 3,507.36 | |
| ShanghaiYifengLongshuntangTraditionalChineseMedicineClinicCo.,Ltd. | Cancellation | April2024 |
6.Otherremarks?Applicable?NotApplicableV.Interestinotherentities
1.Interestinsubsidiaries
(1)Compositionoftheconsolidationscope?Applicable?NotApplicable
| Subsidiaries | Mainoperatingplace | Registrationcapital(CN?10,000) | Placeofregistration | Businessnature | Holdingproportion(%) | Acquisitionmethod | |
| Direct | Indirect | ||||||
| HunanYifengMedicine | Hunan | 15,000.00 | Changsha | Business | 100.00 | Businesscombinationundercommoncontrol | |
| JiangsuYifeng | Jiangsu | 15,000.00 | Nanjing | Business | 100.00 | Businesscombinationundercommoncontrol | |
RemarksoninconsistencybetweenholdingproportionandvotingrightproportioninsubsidiariesNoneBasisforthecontrolofaninvesteewhileholdingitshalforlessthanhalfvotingrights,andthenon-controlofaninvesteewhileholdingitsmorethanhalfvotingrightsNoneBasisforcontrolofsignificantstructuredentitiesbroughtintotheconsolidationscope
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NoneBasisfordetermininganentitybeingactingasanagentoraprincipalNoneOtherremarksTheCompanyhasbroughtsubsidiariesincludingXinxingPharmacy,JiangsuYifengPharmacyChainCo.,Ltd.(the“JiangsuYifeng”),ShanghaiYifengPharmacyChainCo.,Ltd.(the“ShanghaiYifeng”),JiangxiYifengPharmacyChainCo.,Ltd.(the“JiangxiYifeng”),HunanYifengMedicineCo.,Ltd.(the“HunanYifengMedicine”),andJiuzhitangMedicineintotheconsolidationscope..
(2)Significantnotwholly-ownedsubsidiaries?Applicable?NotApplicable
(3)Mainfinancialinformationofsignificantnotwholly-ownedsubsidiaries?Applicable?NotApplicable
(4)Significantrestrictiononuseofthegroupassetsandliquidationofthegroupliabilities?Applicable?NotApplicable
(5)Financialandothersupportprovidedforstructuredentitiesbroughtintotheconsolidationscope?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
2.Transactionsresultinginchangesinsubsidiaries’equitybutwithoutlosingcontrol?Applicable?NotApplicable
3.Interestinjointventuresorassociates?Applicable?NotApplicable
(1).Significantjointventuresorassociates?Applicable?NotApplicable
(2).Mainfinancialinformationofsignificantjointventures?Applicable?NotApplicable
(3).Mainfinancialinformationofsignificantassociates?Applicable?NotApplicable
(4).Aggregatedfinancialinformationofinsignificantjointventuresandassociates?Applicable?NotApplicable
| Items | Closingbalance/Currentperiodcumulative | Openingbalance/Precedingperiodcomparative |
| Jointventures |
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| Items | Closingbalance/Currentperiodcumulative | Openingbalance/Precedingperiodcomparative |
| Totalcarryingamountofinvestments | 5,565,690.31 | |
| Proportionatesharesinthefollowingitems | ||
| Netprofit | 316,574.96 | |
| Othercomprehensiveincome | ||
| Totalcomprehensiveincome | 316,574.96 |
OtherremarksNone
(5).SignificantrestrictionsonremittanceoffundfromjointventuresorassociatestotheCompany?Applicable?NotApplicable
(6).Excesslossesincurredbyjointventuresorassociates?Applicable?NotApplicable
(7).Unrecognizedcommitmentsrelatedtoinvestmentsinjointventures?Applicable?NotApplicable
(8).Contingentliabilitiesrelatedtoinvestmentsinjointventuresorassociates?Applicable?NotApplicable
4.Significantjointoperations?Applicable?NotApplicable
5.InterestinunconsolidatedstructuredentitiesRemarksonunconsolidatedstructuredentities?Applicable?NotApplicable
6.Others?Applicable?NotApplicableXI.Governmentgrants
1.Governmentgrantsrecognizedbasedonreceivables?Applicable?NotApplicableReasonsfornotreceivinggovernmentgrantsreceivableattheexpectedtimepoint?Applicable?NotApplicable
2.Liabilitiesrelatedtogovernmentgrants?Applicable?NotApplicable
| Items | Openingbalance | Increase | Amountincludedintootherincome | Amountincludedintonon-operatingrevenue |
| Deferredincome | 54,073,353.64 | 440,711.63 |
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| Items | Openingbalance | Increase | Amountincludedintootherincome | Amountincludedintonon-operatingrevenue |
| Subtotal | 54,073,353.64 | 440,711.63 |
(Continued)
| Items | Amountoffsettingcosts | Amountoffsettingassets | Otherchanges | Closingbalance | Relatedtoassets/Relatedtoincome |
| Deferredincome | 53,632,642.01 | Relatedtoassets | |||
| Subtotal | 53,632,642.01 |
3.Governmentgrantsincludedintoprofitorloss?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Relatedtoassets | 440,711.63 | 401,359.91 |
| Relatedtoincome | 14,883,427.59 | 43,933,681.43 |
| Other | 47,326.50 | 595,167.68 |
| Total | 15,371,465.72 | 44,930,209.02 |
OtherremarksNoneXII.Risksrelatedtofinancialinstruments
1.Financialinstrumentsrisks?Applicable?NotApplicableInriskmanagement,theCompanyaimstoseektheappropriatebalancebetweentherisksandbenefitsfromitsuseoffinancialinstrumentsandtomitigatetheadverseeffectsthattherisksoffinancialinstrumentshaveontheCompany’sfinancialperformance,soastomaximizetheprofitsofshareholdersandotherequityinvestors.Basedonsuchriskmanagementobjectives,theCompany’sriskmanagementpoliciesareestablishedtoidentifyandanalyzetherisksfacedbytheCompany,tosetappropriaterisklimitsandcontrols,andtomonitorrisksandadherencetolimitsonatimelyandreliablebasis.TheCompanyhasexposuretothefollowingrisksfromitsuseoffinancialinstruments,whichmainlyinclude:creditrisk,liquidityrisk,andmarketrisk.TheManagementhasdeliberatedandapprovedpoliciesconcerningsuchrisks,anddetailsare:
(I)CreditriskCreditriskistheriskthatonepartytoafinancialinstrumentwillcauseafinanciallossfortheotherpartybyfailingtodischargeanobligation.
1.Creditriskmanagementpractice
(1)EvaluationmethodofcreditriskAteachbalancesheetdate,theCompanyassesseswhetherthecreditriskonafinancialinstrumenthas
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increasedsignificantlysinceinitialrecognition.Whenassessingwhetherthecreditriskhasincreasedsignificantlysinceinitialrecognition,theCompanytakesintoaccountreasonableandsupportableinformation,whichisavailablewithoutunduecostoreffort,includingqualitativeandquantitativeanalysisbasedonhistoricaldata,externalcreditriskrating,andforward-lookinginformation.TheCompanydeterminesthechangesindefaultriskoffinancialinstrumentsduringtheestimatedlifetimethroughcomparisonofthedefaultriskatthebalancesheetdateandtheinitialrecognitiondate,onanindividualbasisoracollectivebasis.TheCompanyconsidersthecreditriskonafinancialinstrumenthasincreasedsignificantlywhenoneormoreofthefollowingqualitativeandquantitativestandardsaremet:
1)Quantitativestandardmainlyrelatestothescenarioinwhich,atthebalancesheetdate,theprobabilityofdefaultintheremaininglifetimehasrisenbymorethanacertainpercentagecomparedwiththeinitialrecognition;
2)Qualitativestandardmainlyrelatestosignificantadversechangesinthedebtor’soperationorfinancialposition,presentorexpectedchangesintechnology,market,economyorlegalenvironmentthatwillhavesignificantadverseimpactonthedebtor’srepaymentability;
(2)Definitionofdefaultandcredit-impairedassetsAfinancialinstrumentisdefinedasdefaultedwhenoneormorefollowingeventshaveoccurred,ofwhichthestandardisconsistentwiththatforcredit-impairment:
1)significantfinancialdifficultyofthedebtor;
2)abreachofbindingclauseofcontract;
3)itisverylikelythatthedebtorwillenterbankruptcyorotherfinancialreorganization;
4)thecreditorofthedebtor,foreconomicorcontractualreasonsrelatingtothedebtor’sfinancialdifficulty,havinggrantedtothedebtoraconcession(s)thatthecreditorwouldnototherwiseconsider.
2.MeasurementofexpectedcreditlossesThekeyfactorsinthemeasurementofexpectedcreditlossincludetheprobabilityofdefault,lossgivendefault,andexposuretodefaultrisk.TheCompanydevelopsamodeloftheprobabilityofdefault,lossgivendefault,andexposuretodefaultriskonthebasisofquantitativeanalysisofhistoricaldata(e.g.counterpartyrating,guaranteemeasuresandcollateraltype,paymentmethod,etc.)andforward-lookinginformation.
3.PleaserefertosectionX(VII)5and9ofnotestothefinancialstatementsfordetailsonthereconciliationtableofopeningbalanceandclosingbalanceofprovisionforlossesoffinancialinstrument.
4.ExposuretocreditriskandconcentrationofcreditriskTheCompany’screditriskisprimarilyattributabletocashandbankbalancesandreceivables.Inordertocontrolsuchrisks,theCompanyhastakenthefollowingmeasures:
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(1)CashandbankbalancesTheCompanydepositsitsbankbalancesandothercashandbankbalancesinfinancialinstitutionswithrelativelyhighcreditlevels,hence,itscreditriskisrelativelylow.
(2)ReceivablesTheCompanyperformscreditassessmentoncustomersusingcreditsettlementonaregularbasis.TheCompanyselectscredibleandwell-reputedcustomersbasedoncreditassessmentresult,andconductsongoingmonitoringonbalanceofreceivables,toavoidsignificantrisksinbaddebts.AstheCompany’screditrisksfallintoseveralbusinesspartnersandcustomers,asofDecember312024,
28.28%(December31,2023:26.44%)ofthetotalaccountsreceivablewasduefromthefivelargestcustomersoftheCompany.TheCompanyhasnosignificantcentralcreditrisk.ThemaximumamountofexposuretocreditriskoftheCompanyisthecarryingamountofeachfinancialassetatthebalancesheet.(II)LiquidityriskLiquidityriskistheriskthattheCompanymayencounterdeficiencyoffundsinmeetingobligationsassociatedwithcashorotherfinancialassetssettlement,whichispossiblyattributabletofailureinsellingfinancialassetsatfairvalueonatimelybasis,orfailureincollectingliabilitiesfromcounterpartiesofcontracts,orearlyredemptionofdebts,orfailureinachievingestimatedcashflows.Inordertocontrolsuchrisk,theCompanycomprehensivelyutilizesfinancingtoolssuchasnotessettlement,bankborrowings,etc.andadoptslong-termandshort-termfinancingmethodstooptimizefinancingstructures,andfinallymaintainsabalancebetweenfinancingsustainabilityandflexibility.TheCompanyhasobtainedcreditlimitfromseveralcommercialbankstomeetworkingcapitalrequirementsandexpenditures.Financialliabilitiesclassifiedbasedonremainingtimeperiodtillmaturity
| Items | Closingbalance | ||||
| Carryingamount | Contractamountnotyetdiscounted | Within1year | 1-3years | Over3years | |
| Bankborrowings(includingduewithinoneyear) | 91,552,185.69 | 92,314,713.47 | 92,314,713.47 | ||
| Notespayable | 7,537,483,385.03 | 7,537,483,385.03 | 7,537,483,385.03 | ||
| Accountspayable | 1,954,806,180.26 | 1,954,806,180.26 | 1,954,806,180.26 | ||
| Otherpayable | 772,207,599.54 | 772,207,599.54 | 772,207,599.54 | ||
| Leaseliabilities(includingduewithinoneyear) | 3,583,843,188.43 | 3,836,585,345.73 | 1,365,059,572.17 | 2,392,662,932.96 | 78,862,840.60 |
| Bondspayable(includingduewithinoneyear) | 1,605,784,884.20 | 1,920,502,940.37 | 8,375,896.43 | 41,879,482.15 | 1,870,247,561.79 |
| Subtotal | 15,545,677,423.15 | 16,113,900,164.40 | 11,730,247,346.90 | 2,434,542,415.11 | 1,949,110,402.39 |
(Continued)
| Items | December31,2023 |
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| Carryingamount | Contractamountnotyetdiscounted | Within1year | 1-3years | Over3years | |
| Bankborrowings(includingduewithinoneyear) | 237,101,501.98 | 258,452,597.56 | 112,971,855.83 | 80,864,754.23 | 64,615,987.50 |
| Notespayable | 6,215,388,292.66 | 6,215,388,292.66 | 6,215,388,292.66 | ||
| Accountspayable | 1,955,564,568.05 | 1,955,564,568.05 | 1,955,564,568.05 | ||
| Otherpayable | 810,446,678.28 | 810,446,678.28 | 810,446,678.28 | ||
| Leaseliabilities(includingduewithinoneyear) | 3,560,492,755.24 | 3,785,968,727.53 | 1,490,098,669.17 | 2,248,097,941.31 | 47,772,117.05 |
| Bondspayable(includingduewithinoneyear) | |||||
| Subtotal | 12,778,993,796.21 | 13,025,820,864.08 | 10,584,470,063.99 | 2,328,962,695.54 | 112,388,104.55 |
(III)MarketriskMarketriskistheriskthattheCompanymayencounterfluctuationinfairvalueorfuturecashflowsoffinancialinstrumentsduetochangesinmarketprice.Marketriskmainlyincludesinterestriskandforeigncurrencyrisk.
1.InterestriskInterestriskistheriskthatanenterprisemayencounterfluctuationinfairvalueorfuturecashflowsoffinancialinstrumentsduetochangesinmarketinterest.TheCompany’sfairvalueinterestrisksarisefromfixed-ratefinancialinstruments,whilethecashflowinterestrisksarisefromfloating-ratefinancialinstruments.TheCompanydeterminestheproportionoffixed-ratefinancialinstrumentsandfloating-ratefinancialinstrumentsbasedonthemarketenvironment,andmaintainsaproperfinancialinstrumentsportfoliothroughregularreviewandmonitoring.
2.ForeigncurrencyriskForeigncurrencyriskistheriskarisingfromchangesinfairvalueorfuturecashflowsoffinancialinstrumentresultedfromchangesinexchangerate.TheCompanyismainlyoperatedinmainlandChina,whosemainactivitiesaredenominatedinRMB,hence,theCompanybearsinsignificantmarketriskarisingfromforeignexchangechanges.
2.Hedgingbusinesses
(1)Riskmanagementofhedgingbusinesses?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
(2)Conductingeligiblehedgingbusinessesandapplyinghedgeaccounting?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
(3)Reasonsandeffectsofnotapplyinghedgeaccounting
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?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
3.Financialassetstransfer
(1)Basicsconditionoffinancialassetstransfer?Applicable?NotApplicable
(2)Financialassetsderecognizedduetotransfer?Applicable?NotApplicable
(3)Assetsandliabilitiesarisingfromtransferredbutstillinvolvedfinancialassets?Applicable?NotApplicableOtherremarks?Applicable?NotApplicableXIII.Fairvaluedisclosure
1.Detailsoffairvalueofassetsandliabilitiesatfairvalueatthebalancesheetdate?Applicable?NotApplicable
| Items | Closingfairvalue | |||
| Level1fairvaluemeasurement | Level2fairvaluemeasurement | Level3fairvaluemeasurement | Total | |
| Recurringfairvaluemeasurement | ||||
| 1.Held-for-tradingfinancialassetsandothernon-currentfinancialassets | 4,407,819,254.46 | 4,407,819,254.46 | ||
| Financialassetsclassifiedasatfairvaluethroughprofitorloss | 4,407,819,254.46 | 4,407,819,254.46 | ||
| Financialproducts | 4,406,809,254.46 | 4,406,809,254.46 | ||
| Equityinstrumentinvestments | 1,010,000.00 | 1,010,000.00 | ||
| 2.Receivablesfinancing | 29,445,006.56 | 29,445,006.56 | ||
| 3.Otherequityinstrumentinvestments | 339,971,600.00 | 339,971,600.00 | ||
| Totalassetsatrecurringfairvaluemeasurement | 339,971,600.00 | 4,437,264,261.02 | 4,777,235,861.02 | |
2.Basisfordetermininglevel1fairvalueatrecurringandnon-recurringfairmeasurement?Applicable?NotApplicableLevel1fairvalueatrecurringandnon-recurringfairmeasurementisdeterminedbasedontheclosingpriceoftheactivemarketsuchasexchangesatthebalancesheetdate.
3.Qualitativeandquantitativeinformationofvaluationtechnique(s)andkeyinput(s)forlevel2fairvalueatrecurringandnon-recurringfairvaluemeasurement?Applicable?NotApplicable
4.Qualitativeandquantitativeinformationofvaluationtechnique(s)andkeyinput(s)forlevel3
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fairvalueatrecurringandnon-recurringfairmeasurement?Applicable?NotApplicableAsthereisnosignificantchangeintheoperatingenvironment,operatingsituationandfinancialpositionofinvestees,theCompanytakesinvestmentcostasthereasonableestimateofthefairvalueofequityinstrumentinvestments.Thefairvalueofotherequityinstrumentinvestmentsismeasuredbasedonthepublicmarketquotation.TheCompanyregardscapital-guaranteedfloating-incomewealthmanagementproductsasfinancialassetsmeasuredatfairvaluethroughprofitorloss,anddeterminesthefairvaluebasedonprincipalplusthemarketvalueofexpectedearningsasofthebalancesheetdateusingexpectedcashflowmodel.Duetothefactthatthetermofbankacceptanceisrelativeshortandtheacceptorofbankacceptanceiscommercialbank,whichisofhighcreditlevel,thereisverylittlepossibilityoffailureinrecoverabilitywhenitisdue.Basedonthisfact,theCompanytakesparvalueofbankacceptancesasthereasonableestimateoftheirfairvalue.
5.Itemsforlevel3recurringfairvaluemeasurement,areconciliationfromtheopeningbalancestotheclosingbalances,andsensitiveanalysisonunobservableinputs?Applicable?NotApplicable
6.Itemsatrecurringfairvaluemeasurementwithinter-leveltransfer,andreasonsandpoliciesfordetermininginter-leveltransfertime?Applicable?NotApplicable
7.Changesinvaluationtechniquesinthecurrentperiodandreasonsforchanges?Applicable?NotApplicable
8.Fairvalueoffinancialassetsandliabilitiesnotatfairvalue?Applicable?NotApplicable
9.Other?Applicable?NotApplicableXIV.Relatedpartyrelationshipsandtransactions
1.Parentcompany?Applicable?NotApplicable
| Parentcompany | Placeofregistration | Businessnature | Registeredcapital(CN?10,000) | HoldingproportionovertheCompany(%) | VotingrightproportionovertheCompany(%) |
| NingboMeishanBondedPortHouxinVentureCapitalInvestmentPartnershipEnterprise(LimitedPartnership) | Ningbo | Investment | 66,330.7289 | 21.65 | 21.65 |
Remarksontheparentcompany
/
NoneTheCompany’sultimatecontrollingpartyisGaoYi.OtherremarksNone
2.SubsidiariesPleaserefertosectionXofnotestothefinancialstatementsfordetailsontheCompany’ssubsidiaries.?Applicable?NotApplicable
3.JointventuresandassociatesoftheCompany?Applicable?NotApplicableDetailsofotherjointventuresorassociatescarryingoutrelatedpartytransactionswiththeCompanyinthecurrentperiodorinprecedingperiodbutwithbalanceinthecurrentperiodareasfollows:
?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
4.OtherrelatedpartiesoftheCompany?Applicable?NotApplicable
| Relatedparties | RelationshipswiththeCompany |
| JiuzhitangCo.,Ltd. | Holding49%ofequityofJiuzhitangMedicine,whichisasubsidiaryoftheCompany |
| JiuzhitangPharmaceuticalTradingCo.,Ltd. | SubsidiaryofJiuzhitangCo.,Ltd. |
| HunanSiqiBiopharmaceuticalCo.,Ltd. | SubsidiaryofJiuzhitangCo.,Ltd. |
| ChengduJiuzhitangJindingPharmaceuticalCo.,Ltd. | SubsidiaryofJiuzhitangCo.,Ltd. |
| HainanJiuzhitangPharmaceuticalCo.,Ltd. | SubsidiaryofJiuzhitangCo.,Ltd. |
| vJiuzhitang(Hunan)HealthManagementCo.,Ltd. | SubsidiaryofJiuzhitangCo.,Ltd. |
| TaizhouBaixingren[Note] | Jointventure |
OtherremarksNote:TaizhouYifengBaixingrenPharmacyChainCo.,Ltd.completedtaxderegistrationinFebruary2025andiscurrentlyhandlingbusinessderegistration.
5.Relatedpartytransactions
(1)Purchaseandsaleofgoods,renderingandreceivingofservicesPurchaseofgoodsandreceivingofservices?Applicable?NotApplicable
/
| Relatedparties | Contentoftransactions | Currentperiodcumulative | Precedingperiodcomparative |
| JiuzhitangCo.,Ltd. | Purchaseofmedicine | 68,409,189.63 | 78,898,456.73 |
| JiuzhitangCo.,Ltd. | Purchaseofutilities,etc. | 235,277.69 | 668,776.99 |
| JiuzhitangPharmaceuticalTradingCo.,Ltd. | Purchaseofmedicine | 17,550,237.16 | 27,125,278.46 |
| HunanSiqiBiopharmaceuticalCo.,Ltd. | Purchaseofmedicine | 1,361,316.86 | 1,406,627.30 |
| ChengduJiuzhitangJindingPharmaceuticalCo.,Ltd. | Purchaseofmedicine | 10,844,228.53 | 4,433,047.85 |
| HainanJiuzhitangPharmaceuticalCo.,Ltd. | Purchaseofmedicine | 676,741.07 | 695,787.60 |
| Jiuzhitang(Hunan)HealthManagementCo.,Ltd. | Purchaseofmedicine | 1,649,240.09 | 13,187.96 |
Saleofgoodsandrenderingofservices?Applicable?NotApplicable
| Relatedparties | Contentoftransactions | Currentperiodcumulative | Precedingperiodcomparative |
| Jiuzhitang(Hunan)HealthManagementCo.,Ltd. | Saleofmedicine | 17,585,464.73 | 19,093,516.03 |
| JiuzhitangPharmaceuticalTradingCo.,Ltd. | Saleofmedicine | 86,894.59 |
Remarksonpurchaseandsaleofgoods,renderingandreceivingofservices?Applicable?NotApplicablePursuanttothe“ProposalontheRecognitionofDailyRelatedTransactionsin2023andtheEstimationonDailyRelatedTransactionsin2024”deliberatedandapprovedbythe39thmeetingoftheforthsessionoftheBoardofDirectorsdatedApril26,2024,itwasestimatedthatthetotalamountofpurchasesandsalesfromtherelatedpartyJiuzhitangCo.,Ltd.anditssubsidiaries,willnotexceed175millionyuanin2024.Theactualamountincurredin2024didnotexceedtheapprovedtransactionlimit.
(2)Relatedpartytrust/contractingandconsignation/outsourcingTheCompanyasthetrusteeorcontractor?Applicable?NotApplicableRemarksonrelatedpartytrust/contracting?Applicable?NotApplicableTheCompanyasthetrustororcontractee?Applicable?NotApplicableRemarksonrelatedpartyconsignation/outsourcing?Applicable?NotApplicable
(3).RelatedpartyleasesTheCompanyasthelessor?Applicable?NotApplicable
/
TheCompanyasthelessee?Applicable?NotApplicable
| Lessors | Typesofassetsleased | Expensesforshort-termleasesandleasesoflow-valueassetswithsimplifiedapproachandvariableleasepaymentsnotincludedinthemeasurementofleaseliabilities | Variableleasepaymentsnotincludedinthemeasurementofleaseliabilities | ||
| Currentperiodcumulative | Precedingperiodcomparative | Currentperiodcumulative | Precedingperiodcomparative | ||
| JiuzhitangCo.,Ltd. | Buildingsandstructures | ||||
(Continued)
| Lessors | Typesofassetsleased | Leaseexpensespaid | Interestexpensesrecognized | IncreasedprincipalofRight-of-useassets | |||
| Currentperiodcumulative | Precedingperiodcomparative | Currentperiodcumulative | Precedingperiodcomparative | Currentperiodcumulative | Precedingperiodcomparative | ||
| JiuzhitangCo.,Ltd. | Buildingsandstructures | 2,835,548.70 | 5,076,256.65 | 12,609.94 | 14,743.52 | ||
Remarksonrelatedpartyleases?Applicable?NotApplicableNone
(4).RelatedpartytrustTheCompanyanditssubsidiariesasguarantors?Applicable?NotApplicableTheCompanyasthetrustee?Applicable?NotApplicable
| Guarantors | AmountofGuarantee | Commencementdate | Maturitydate | Whethertheguaranteeismature |
| GaoYi | 61,429,093.40 | 8/10/2018 | 8/10/2025 | No |
Remarksonrelatedpartytrust?Applicable?NotApplicableTheguaranteedisclosedrefertothebalanceofmergerandacquisitionloanborrowingsandtheamountofbankacceptancethathavebeenissuedbutnotyetmaturedbeforethenewcreditcontracttakeseffect.
(5).Callloansbetweenrelatedparties?Applicable?NotApplicable
(6).Assetstransferanddebtrestructuringoftherelatedparties
/
?Applicable?NotApplicable
(7).Keymanagement’semoluments?Applicable?NotApplicable
Unit:TenThousandYuan
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Keymanagement’semoluments | 2,375.71 | 2,288.02 |
(8).Otherrelatedpartytransactions?Applicable?NotApplicableNone
6.Balancesduetoorfromrelatedparties
(1).Balancesduefromrelatedparties?Applicable?NotApplicable
| Items | Relatedparties | Closingbalance | December31,2023 | ||
| Bookbalance | Provisionforbaddebts | Bookbalance | Provisionforbaddebts | ||
| Accountsreceivable | Jiuzhitang(Hunan)HealthManagementCo.,Ltd. | 2,219,643.99 | 110,982.20 | 711,768.78 | 35,588.44 |
| Subtotal | 2,219,643.99 | 110,982.20 | 711,768.78 | 35,588.44 | |
(2).Balancesduetorelatedparties?Applicable?NotApplicable
| Items | Relatedparties | Closingbalance | December31,2023 |
| Accountspayable | JiuzhitangCo.,Ltd. | 6,411,610.09 | 3,780,845.69 |
| Accountspayable | JiuzhitangPharmaceuticalTradingCo.,Ltd. | 3,146,163.64 | 604,238.60 |
| Accountspayable | HunanSiqiBiopharmaceuticalCo.,Ltd. | 443,492.00 | 571,892.00 |
| Accountspayable | ChengduJiuzhitangJindingPharmaceuticalCo.,Ltd. | 2,507,682.91 | 1,518,135.55 |
| Accountspayable | HainanJiuzhitangPharmaceuticalCo.,Ltd. | 162,805.60 | 214,032.00 |
| Accountspayable | Jiuzhitang(Hunan)HealthManagementCo.,Ltd. | 137,761.56 | 7,465.20 |
| Subtotal | 12,809,515.80 | 6,696,609.04 | |
| Otherpayables | JiuzhitangCo.,Ltd. | 671.43 | 149,367.56 |
| TaizhouBaixingren | 10,797,825.21 | ||
| Subtotal | 671.43 | 10,947,192.77 |
(3).Others?Applicable?NotApplicable
7.Relatedpartycommitments
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?Applicable?NotApplicable
8.Others?Applicable?NotApplicableXV.Share-basedpayment
1.Equityinstruments?Applicable?NotApplicable
| Objects | Quantityandamountofequityinstruments | |||||||
| Grantedinthecurrentperiod | Vestedinthecurrentperiod | Unlockedinthecurrentperiod | Expiredinthecurrentperiod | |||||
| Quantity | Amount | Quantity | Amount | Quantity | Amount | Quantity | Amount | |
| Managementpersonnel | 2,450,228.00 | 36,672,343.83 | 267,164.00 | 3,998,723.15 | ||||
| Total | 2,450,228.00 | 36,672,343.83 | 267,164.00 | 3,998,723.15 | ||||
Shareoptionsandotherequityinstrumentsoutstandingatthebalancesheetdate?Applicable?NotApplicable
| Objects | Shareoptionsoutstanding | Otherequityinstrumentsoutstanding | ||
| Rangeofexerciseprices | Remainingcontractuallife | Rangeofexerciseprices | Remainingcontractuallife | |
| Managementpersonnel | 18.95 | PhaseII:7months | ||
Otherremarks
(1)DetailsOnSeptember16,2022,“ProposalontheFirstGrantofRestrictedSharestoIncentiveObjectsofthe2022RestrictedShareIncentivePlan”wasdeliberatedandapprovedbythe18
thmeetingofthefourthsessionoftheBoardofDirectorsandthe16
th
meetingofthefourthsessionoftheBoardofSupervisors.Itwasconfirmedthattheconditionsforthefirstgranthadbeenmet,anditwasdecidedtogrant3,132,000restrictedsharesto245incentiveobjectsatapriceof25.01yuanpershare,withthegrantdateonSeptember16,2022.Duringtheprocessofcapitalverificationuponpayment,theactualnumberofincentiveobjectsgrantedbytheCompanychangedfrom245to241,andtheactualnumberofrestrictedsharesgrantedchangedfrom3,132,000to3,095,200shares.OnAugust29,2023,“ProposalonGrantingReservedEquitytotheIncentiveObjectsofRestrictedSharesIncentivePlanof2022”wasdeliberatedandapprovedbythe31
st
meetingofthefourthsessionoftheBoardofDirectorsandthe26
th
meetingofthefourthsessionoftheBoardofSupervisors.Itwasconfirmedthattheconditionsforgrantingreservedequityundertheincentiveplanhadbeenmet,anditwasdecidedtogrant402,165restrictedsharesto42incentiveobjectsatapriceof18.95yuanpershare,withthegrantdateonAugust30,2023.
(2)ArrangementoftherestrictedsharessalerestrictionperiodTherestrictedsharessalerestrictionperiodfortherestrictedsharesgrantedforthefirsttimeunderthisincentiveplanis12monthsand24monthsfromthedateofcompletionoftheregistrationforthefirst
/
grantedrestrictedshares.TheunlockingperiodfortherestrictedsharesgrantedforthefirsttimebytheCompanyandthetimingforeachunlockingperiodareasshowninthefollowingtable:
| Arrangementsforunlockingperiod | Timingforunlockingperiod | Proportionofthenumberofrestrictedsharesthatcanbeunlockedtothetotalnumberofrestrictedshares |
| Thefirstunlockingperiod | Fromthefirsttradingdayafter12monthsfromthedateofcompletionofthefirstgranttothelasttradingdaywithin24monthsfromthedateofcompletionofthefirstgrant. | 50% |
| Thesecondunlockingperiod | Fromthefirsttradingdayafter24monthsfromthedateofcompletionofthefirstgranttothelasttradingdaywithin36monthsfromthedateofcompletionofthefirstgrant. | 50% |
Therestrictedsharessalerestrictionperiodforthereservedgrantedrestrictedsharesunderthisincentiveplanis12monthsand24monthsfromthedateofcompletionoftheregistrationforthereservedgrantedrestrictedshares.TheunlockingperiodfortherestrictedsharesreservedgrantedbytheCompanyandthetimingforeachunlockingperiodareasshowninthefollowingtable:
| Arrangementsforunlockingperiod | Timingforunlockingperiod | Proportionofthenumberofrestrictedsharesthatcanbeunlockedtothetotalnumberofrestrictedshares |
| Thefirstunlockingperiod | Fromthefirsttradingdayafter12monthsfromthedateofcompletionofthereservedgranttothelasttradingdaywithin24monthsfromthedateofcompletionofthereservedgrant. | 50% |
| Thesecondunlockingperiod | Fromthefirsttradingdayafter24monthsfromthedateofcompletionofthereservedgranttothelasttradingdaywithin36monthsfromthedateofcompletionofthereservedgrant. | 50% |
(3)Unlockingconditions
1)RequirementsforperformanceevaluationTherestrictedsharesfirstgrantedundertheincentiveplanhaveanunlockingevaluationperiodoftwofiscalyearsfrom2022to2023,withanevaluationconductedforeachfiscalyear.Therequirementforunlockingofrestrictedsharesistheachievementofperformanceevaluationtargets.Theperformanceevaluationtargetsforeachfiscalyearoftherestrictedsharesfirstgrantedareasshowninthefollowingtable:
| Unlockingperiods | Requirementsforperformanceevaluation |
| Thefirstunlockingperiod | Basedonthenetprofitof2021,thenetprofitoftheCompanyin2022increasesbynolessthan20%comparedto2021. |
| Thesecondunlockingperiod | Basedonthenetprofitof2021,thenetprofitoftheCompanyin2023increasesbynolessthan45%comparedto2021. |
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Therestrictedsharesreservedgrantedundertheincentiveplanhaveanunlockingevaluationperiodoftwofiscalyearsfrom2023to2024,withanevaluationconductedforeachfiscalyear.Therequirementforunlockingofrestrictedsharesistheachievementofperformanceevaluationtargets.Theperformanceevaluationtargetsforeachfiscalyearoftherestrictedsharesreservedgrantedareasshowninthefollowingtable:
| Unlockingperiods | Requirementsforperformanceevaluation |
| Thefirstunlockingperiod | Basedonthenetprofitof2021,thenetprofitoftheCompanyin2023increasesbynolessthan45%comparedto2021. |
| Thesecondunlockingperiod | Basedonthenetprofitof2021,thenetprofitoftheCompanyin2024increasesbynolessthan70%comparedto2021. |
Theaforementioned“netprofit”referstothenetprofitattributabletotheownersoftheparentcompany.IftheCompanyfailstomeettheaboveperformanceevaluationtargets,allrestrictedsharesofincentiveobjectsthatcanbeunlockedinthecorrespondingyearofevaluationshallnotbeunlocked,andshallberepurchasedandcancelledbytheCompany.Therepurchasepriceshallbethegrantpriceplustheinterestonbankdepositsforthecorrespondingperiod.
2)RequirementsforindividualperformanceevaluationTheCompanyconductsacomprehensiveevaluationoftheindividualannualperformancecategoriesforincentiveobjects,andthecomprehensiveevaluationresultsareshowninthefollowingtable.
| Evaluationresults | Standard | Standardcoefficient |
| Satisfactory | Annualevaluationcompletionrate≥80% | 1.0 |
| Unsatisfactory | Annualevaluationcompletionrate<80% | 0 |
Iftheindividualperformanceevaluationmeetstheunlockingconditions,theincentiveobjectmayapplytounlocktherestrictedshareseligibleforunlockingduringthatperiodinaccordancewiththerelevantprovisionsoftheincentiveplanbasedontheevaluationresults.Iftheindividualperformanceevaluationfailstomeettheunlockingconditions,theportionofrestrictedshareseligibleforunlockinginthecurrentperiodforthatincentiveobjectshallbecancelled,andshallberepurchasedandcancelledbytheCompanyatthegrantprice.Iftheconditionsforobtainingandexercisingrightsandinterestsgrantedtoincentiveobjectsarenotmet,therelevantrightsandinterestsshallnotbedeferredtothenextperiod.
2.Equity-settledshare-basedpayment?Applicable?NotApplicable
| Determinationmethodforgrant-datefairvalueofequityinstruments | Balanceoftheclosingpriceonthegrantdateandtheexercisepriceoftherestrictedshares |
| Determinationmethodforthenumberofequityinstrumentsexpectedtovest | Basedontheequityinstrumentscorrespondingtothein-serviceincentiveobjects,theCompany'sperformance,andindividualevaluationresults. |
| Reasonsforsignificantdifferencebetweentheestimatesinthecurrentperiodandprecedingperiod | N/A |
/
| Capitalreserveaccumulatedduetoequity-settledshare-basedpayment | 73,475,145.50 |
OtherremarksNone
3.Cash-settledshare-basedpayment?Applicable?NotApplicable
4.Totalshare-basedpaymentsrecognizedinthecurrentperiod?Applicable?NotApplicable
| Objects | Equity-settledshare-basedpayment | Cash-settledshare-basedpayment |
| Managementpersonnel | 14,075,129.20 | |
| Subtotal | 14,075,129.20 |
OtherremarksNone
5.Modificationsandcancellationsofshare-basedpayment?Applicable?NotApplicable
6.Others?Applicable?NotApplicableXVI.Commitmentsandcontingencies
1.Significantcommitments?Applicable?NotApplicable
2.Significantcontingencies
(1).Significantcontingencies?Applicable?NotApplicable
(2).Remarksoninsignificantcontingenciesnotbeenissued?Applicable?NotApplicable
3.Others?Applicable?NotApplicableXVII.Eventsafterthebalancesheetdate
1.Significantnon-adjustingevents?Applicable?NotApplicable
2.Profitdistributionafterthebalancesheetdate?Applicable?NotApplicable
| Profitordividendplannedtobedistributed | 484,966,717.60 |
/
PursuanttotheProposalofProfitDistributionPlanof2024deliberatedandapprovedbythe16
thmeetingofthefifthsessionoftheBoardofDirectors,basedonthetotalsharecapitalattheequityregistrationdate,theCompanydistributedcashdividendof0.5yuan(taxinclusive)persharetoallshareholders,andincreased0.4sharepersharetoallshareholdersbyconvertingcapitalreserve,withoutissuingbonusshares.AsatMarch31,2025,cashdividendof484,966,717.60yuan(taxinclusive)wouldbeendistributed,basedonthetotalsharecapitalof1,212,416,794shares.Ifthecompany'stotalsharecapitalchangesduetorepurchaseandcancellationofequityincentivesharesbetweenthedateofapprovalofthisproposalandthedateofequityregistrationfortheimplementationofequitydistribution,thecompanywillmaintaintheconstantproportionofdistribution(additionalissuance)pershareandadjustthetotalamountofdistribution(additionalissuance)accordingly.Thisplanstillshouldbedeliberatedandapprovedbytheshareholders’meeting.
3.Salesreturn?Applicable?NotApplicable
4.Otherremarks?Applicable?NotApplicableXVIII.Othersignificantevents
1.Correctionsofpriorperioderrors
(1)Retroactiverestatementmethod?Applicable?NotApplicable
(2)Prospectiveapplicationmethod?Applicable?NotApplicable
2.Debtrestructuring?Applicable?NotApplicable
3.Assetsexchange
(1).Non-cashassetsexchange?Applicable?NotApplicable
(2).Otherassetsexchange?Applicable?NotApplicable
4.Annuityplan?Applicable?NotApplicable
5.Discontinuedoperations?Applicable?NotApplicable
/
6.Segmentinformation
(1).Identificationbasisforreportablesegments?Applicable?NotApplicableReportablesegmentsareidentifiedaccordingtothestructureoftheCompany’sinternalorganization,managementrequirementsandinternalreportingsystem,andbasedonindustrysegments.Assessmentsarerespectivelyperformedontheoperationperformanceofretailbusinessandwholesalebusiness.Assetsandliabilitiessharedbydifferentsegmentsareallocatedamongsegmentsproportionatetotheirrespectivesizes.
(2).Financialinformationofreportablesegments?Applicable?NotApplicable
| Items | Retailbusiness | Wholesalebusiness | Inter-segmentoffsetting | Total |
| Operatingrevenue | 21,187,950,919.30 | 5,618,890,072.66 | -3,511,812,281.17 | 23,295,028,710.79 |
| Operatingcost | 12,417,209,959.66 | 5,041,735,777.08 | -3,100,722,588.73 | 14,358,223,148.01 |
| Totalassets | 27,957,291,233.19 | 12,460,608,073.71 | -12,443,162,356.55 | 27,974,736,950.35 |
| Totalliabilities | 18,390,694,463.76 | 9,338,277,271.97 | -11,147,798,263.31 | 16,581,173,472.42 |
(3).Ifthecompanydoesnothaveareportingsegment,orcannotdisclosethetotalassetsandliabilitiesofeachreportingsegment,thereasonsshallbestated?Applicable?NotApplicable
(4).Otherremarks?Applicable?NotApplicable
7.Othersignificanttransactionsandeventsthatmaybeinfluentialforinvestorsindecision-making?Applicable?NotApplicable
8.Others?Applicable?NotApplicableIXX.Notestoitemsofparentcompanyfinancialstatements
1.Accountsreceivable
(1)Ageanalysis?Applicable?NotApplicable
| Ages | Closingbalance | Openingbalance |
| Within1year | 519,764,222.37 | 492,921,964.50 |
| 1-2years | 45,004.89 | 220,567.54 |
| 2-3years | 8,613.29 | |
| 3-4years | 593.33 | 2,717.49 |
| 4-5years | 2,715.09 |
/
| Ages | Closingbalance | Openingbalance |
| Total | 519,812,535.68 | 493,153,862.82 |
(2)Provisionforbaddebts?Applicable?NotApplicable
| Categories | Closingbalance | ||||
| Bookbalance | Provisionforbaddebts | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Receivableswithprovisionmadeonacollectivebasis | 519,812,535.68 | 100.00 | 7,056,646.89 | 1.36 | 512,755,888.79 |
| Including:Portfoliogroupedwithbalancesduefromrelatedpartieswithintheconsolidationscope | 278,749.34 | 0.05 | 278,749.34 | ||
| Portfoliogroupedwithmedicalinsurancepayments | 378,473,256.08 | 72.81 | 378,473,256.08 | ||
| Portfoliogroupedwithages | 141,060,530.26 | 27.14 | 7,056,646.89 | 5.00 | 134,003,883.37 |
| Total | 519,812,535.68 | 100.00 | 7,056,646.89 | 1.36 | 512,755,888.79 |
(Continued)
| Categories | December31,2023 | ||||
| Bookbalance | Provisionforbaddebts | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Receivableswithprovisionmadeonacollectivebasis | 493,153,862.82 | 100.00 | 5,812,230.14 | 1.18 | 487,341,632.68 |
| Including:Portfoliogroupedwithbalancesduefromrelatedpartieswithintheconsolidationscope | |||||
| Portfoliogroupedwithmedicalinsurancepayments | 377,169,254.88 | 76.48 | 377,169,254.88 | ||
| Portfoliogroupedwithages | 115,984,607.94 | 23.52 | 5,812,230.14 | 5.01 | 110,172,377.80 |
| Total | 493,153,862.82 | 100.00 | 5,812,230.14 | 1.18 | 487,341,632.68 |
Accountsreceivablewithprovisionmadeonanindividualbasis?Applicable?NotApplicableAccountsreceivablewithprovisionforbaddebtsmadeonacollectivebasis?Applicable?NotApplicable
| Items | Closingbalance | ||
| Bookbalance | Provisionforbaddebts | Provisionproportion(%) | |
| Portfoliogroupedwithbalancesduefromrelatedpartieswithintheconsolidationscope | 278,749.34 | ||
/
| Items | Closingbalance | ||
| Bookbalance | Provisionforbaddebts | Provisionproportion(%) | |
| PortfoliogroupedMedicalinsurancepayments | 378,473,256.08 | ||
| Portfoliogroupedwithages | 141,060,530.26 | 7,056,646.89 | 5.00 |
| Subtotal | 519,812,535.68 | 7,056,646.89 | 1.36 |
Remarksonaccountsreceivablewithprovisionforbaddebtsmadeonacollectivebasis?Applicable?NotApplicableAccountsreceivablewithprovisionmadeonacollectivebasisusingageanalysismethod
| Ages | Closingbalance | ||
| Bookbalance | Provisionforbaddebts | Provisionproportion(%) | |
| Within1year | 141,012,216.95 | 7,050,610.85 | 5.00 |
| 1-2years | 45,004.89 | 4,500.49 | 10.00 |
| 3-4years | 593.33 | 178.00 | 30.00 |
| 4-5years | 2,715.09 | 1357.55 | 50.00 |
| Subtotal | 141,060,530.26 | 7,056,646.89 | 5.00 |
Provisionforbaddebtswithdrawnbasedonthegeneralmodelofexpectedcreditlosses?Applicable?NotApplicableDivisionbasisforstagesandproportionsofprovisionforbaddebtsNoneReasonsforsignificantchangesincarryingamountofaccountsreceivableinthecurrentperiod?Applicable?NotApplicable
(3)Changesinprovisionforbaddebts?Applicable?NotApplicable
| Items | Openingbalance | Increase | Decrease | Closingbalance | ||||
| Accrual | Recovery | Others | Reversal | Write-off | Others | |||
| Receivableswithprovisionmadeonacollectivebasis | 5,812,230.14 | 1,244,416.75 | 7,056,646.89 | |||||
| Total | 5,812,230.14 | 1,244,416.75 | 7,056,646.89 | |||||
Significantprovisionscollectedorreversed?Applicable?NotApplicableOtherremarksNone
(4)Accountsreceivablewrittenoff?Applicable?NotApplicable
/
Significantaccountsreceivablewrittenoffinthecurrentperiod?Applicable?NotApplicableRemarksonaccountsreceivablewrittenoff?Applicable?NotApplicable
(5)Detailsofthetop5debtorswithlargestbalances?Applicable?NotApplicable
| Debtors | Bookbalanceofaccountsreceivable | Bookbalanceofcontractassets | Bookbalanceofaccountsreceivableandcontractassets | Proportiontothetotalbalanceofaccountsreceivableandcontractassets(%) | Provisionforbaddebts |
| ChangshaMedicalSecurityAffairsCenter | 133,875,050.02 | 133,875,050.02 | 25.75 | ||
| ShanghaiQijianInformationTechnologyCo.,Ltd. | 28,850,723.62 | 28,850,723.62 | 5.55 | 1,442,536.18 | |
| Pukang(Hangzhou)HealthTechnologyCo.,Ltd. | 28,621,112.67 | 28,621,112.67 | 5.51 | 1,431,055.63 | |
| HengyangMedicalSecurityBureau | 20,460,090.91 | 20,460,090.91 | 3.94 | ||
| ShanghaiYibaoHealthManagementCo.,Ltd. | 16,517,688.81 | 16,517,688.81 | 3.18 | 825,884.44 | |
| Subtotal | 228,324,666.03 | 228,324,666.03 | 43.92 | 3,699,476.25 |
OtherremarksNoneOthers?Applicable?NotApplicable
2.Otherreceivables?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
| Interestreceivable | 855,724.12 | |
| Dividendreceivable | 1,124,634,282.78 | 581,621,336.22 |
| Otherreceivables | 602,384,559.13 | 794,138,361.20 |
| Total | 1,727,018,841.91 | 1,376,615,421.54 |
Otherremarks?Applicable?NotApplicableInterestreceivable
(1)Classificationofinterestreceivables?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 |
| InterestreceivabletoSubsidiaries | 855,724.12 | |
| Subtotal | 855,724.12 |
/
(2)Significantoverdueinterest?Applicable?NotApplicable
(3)Provisionforbaddebts?Applicable?NotApplicableInterestreceivablewithprovisionmadeonanindividualbasis?Applicable?NotApplicableRemarkofinterestreceivablewithprovisionmadeonanindividualbasis?Applicable?NotApplicableInterestreceivablewithprovisionmadeonacollectivebasis?Applicable?NotApplicable
(4).Provisionforbaddebtswithdrawnbasedonthegeneralmodelofexpectedcreditlosses?Applicable?NotApplicableDivisionbasisforstagesandproportionsofprovisionforbaddebtsNoneReasonsforsignificantchangesincarryingamountofinterestreceivableinthecurrentperiod?Applicable?NotApplicable
(5)Changesinprovisionforbaddebts?Applicable?NotApplicableSignificantinterestreceivablewrittenoffinthecurrentperiod?Applicable?NotApplicableOtherremarksNone
(6)Interestreceivableactuallywrittenoff?Applicable?NotApplicableSignificantinterestreceivablewrittenoffinthecurrentperiod?Applicable?NotApplicableRemarksoninterestreceivablewrittenoff?Applicable?NotApplicableOtherremarksNoneDividendreceivable
(7)Dividendreceivable?Applicable?NotApplicable
/
| Items | Closingbalance | December31,2023 |
| DividendreceivabletoSubsidiaries | 1,124,634,282.78 | 581,621,336.22 |
| Subtotal | 1,124,634,282.78 | 581,621,336.22 |
(8)Significantbalancewithageoveroneyear?Applicable?NotApplicable
(9)Provisionforbaddebts?Applicable?NotApplicableDividendreceivablewithprovisionmadeonanindividualbasis?Applicable?NotApplicableRemarkofdividendreceivablewithprovisionmadeonanindividualbasis?Applicable?NotApplicableDividendreceivablewithprovisionmadeonacollectivebasis?Applicable?NotApplicable
(10)Provisionforbaddebtswithdrawnbasedonthegeneralmodelofexpectedcreditlosses?Applicable?NotApplicableDivisionbasisforstagesandproportionsofprovisionforbaddebtsNoneReasonsforsignificantchangesincarryingamountofdividendreceivableinthecurrentperiod?Applicable?NotApplicable
(11)Changesinprovisionforbaddebts?Applicable?NotApplicableSignificantprovisionscollectedorreversed?Applicable?NotApplicableOtherremarksNone
(12)Otherreceivablesactuallywrittenoffinthecurrentperiod?Applicable?NotApplicableSignificantotherreceivableswrittenoffinthecurrentperiod?Applicable?NotApplicableRemarksonotherreceivableswrittenoff?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
/
Otherreceivables
(13)Ageanalysis
| Ages | Closingbookbalance | BookbalanceonDecember31,2023 |
| Within1year | 595,083,423.31 | 773,113,789.41 |
| 1-2years | 5,597,594.20 | 24,253,860.37 |
| 2-3years | 2,712,226.44 | 337,612.88 |
| 3-4years | 337,612.88 | 62,048.83 |
| 4-5years | 62,048.83 | |
| Over5years | ||
| Total | 603,792,905.66 | 797,767,311.49 |
(14)Otherreceivablescategorizedbynature?Applicable?NotApplicable
| Natureofreceivables | Closingbookbalance | BookbalanceonDecember31,2023 |
| Securitydeposits | 25,325,800.14 | 25,859,213.46 |
| Medicalinsurancereserves | 34,363,692.56 | 34,897,794.71 |
| Storepettycash | 1,499,954.77 | 22,500.00 |
| Balancesduefromrelatedpartieswithintheconsolidationscope | 540,134,484.36 | 712,667,149.76 |
| Others | 2,468,973.83 | 24,320,653.56 |
| Subtotal | 603,792,905.66 | 797,767,311.49 |
(15)Changesinprovisionforbaddebts?Applicable?NotApplicable
| Items | Stage1 | Stage2 | Stage3 | Subtotal |
| 12?monthexpectedcreditlosses | Lifetimeexpectedcreditlosses(creditnotimpaired) | Lifetimeexpectedcreditlosses(creditimpaired) | ||
| Openingbalance | 1,393,662.61 | 2,226,035.28 | 9,252.40 | 3,628,950.29 |
| Openingbalanceinthecurrentperiod | —— | —— | —— | |
| --Transferredtostage2 | -4,804.55 | 4,804.55 | ||
| --Transferredtostage3 | -8,868.85 | 8,868.85 | ||
| Provisionmadeinthecurrentperiod | -8,458.33 | -2,212,361.88 | 216.45 | -2,220,603.76 |
| Provisionwrittenoffinthecurrentperiod | ||||
| Closingbalance | 1,380,399.73 | 9,609.10 | 18,337.70 | 1,408,346.53 |
Divisionbasisforstagesandproportionsofprovisionforbaddebts:
Stage1iswherecreditriskofotherreceivableshasnotincreasedsignificantlysinceinitialrecognition.Stage2iswherecreditriskofotherreceivableshasincreasedsignificantlysinceinitialrecognition,butsuchreceivablesarenotconsideredcredit-impaired.Stage3iswhereotherreceivablesareconsidered
/
credit-impairedsinceinitialrecognition.
| Items | Stage1 | Stage2 | Stage3 | Total |
| Provisionproportion(%) | 0.23 | 0.17 | 0.59 | 0.23 |
Reasonsforsignificantchangesincarryingamountofotherreceivablesinthecurrentperiod?Applicable?NotApplicableDeterminationbasisforprovisionforimpairmentmadeinthecurrentperiodandwhethercreditriskhasincreasedsignificantly?Applicable?NotApplicable
(16)Changesinprovisionforbaddebts?Applicable?NotApplicable
| Items | Openingbalance | Increase | Decrease | Closingbalance | ||||
| Accrual | Recovery | Others | Reversal | Write-off | Others | |||
| Receivableswithprovisionmadeonacollectivebasis | 3,628,950.29 | -2,220,603.76 | 1,408,346.53 | |||||
| Total | 3,628,950.29 | -2,220,603.76 | 1,408,346.53 | |||||
Significantprovisionscollectedorreversed?Applicable?NotApplicableOtherremarksNone
(17)Otherreceivablesactuallywrittenoffinthecurrentperiod?Applicable?NotApplicableSignificantotherreceivableswrittenoffinthecurrentperiod?Applicable?NotApplicableRemarksonotherreceivableswrittenoff?Applicable?NotApplicable
(18)Detailsofthetop5debtorswithlargestbalances?Applicable?NotApplicable
| Debtors | Natureofreceivables | Bookbalance | Ages | Proportiontothetotalbalanceofotherreceivables(%) | Provisionforbaddebts |
| ShanghaiYifengPharmacyMedicineCo.,Ltd. | Balancesduefromrelatedpartieswithintheconsolidationscope | 203,162,827.56 | Within1year,1-2years | 33.65 | |
| JiangxiYifeng | Balancesduefromrelatedpartieswithintheconsolidationscope | 84,816,176.42 | Within1year,1-2years | 14.05 | |
| Guangshengtang | Balancesduefromrelatedpartieswithintheconsolidationscope | 64,625,738.64 | Within1year,1-2years | 10.70 | |
| HunanYifengPharmaceuticalHolding | Balancesduefromrelatedpartieswithin | 54,576,074.80 | Within1year,1-2years | 9.04 |
/
| Debtors | Natureofreceivables | Bookbalance | Ages | Proportiontothetotalbalanceofotherreceivables(%) | Provisionforbaddebts |
| Co.,Ltd. | theconsolidationscope | ||||
| JiangxiGanxiYifengPharmacyMedicineChainCo.,Ltd. | Balancesduefromrelatedpartieswithintheconsolidationscope | 48,033,372.97 | Within1year,1-2years | 7.96 | |
| Subtotal | 455,214,190.39 | 75.40 |
(19)Otherreceivablesrelatedtothecentralizedfundmanagement?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
3.Long-termequityinvestments?Applicable?NotApplicable
| Items | Closingbalance | December31,2023 | ||||
| Bookbalance | Provisionforimpairment | Carryingamount | Bookbalance | Provisionforimpairment | Carryingamount | |
| Investmentsinsubsidiaries | 2,650,755,329.68 | 2,650,755,329.68 | 2,600,755,329.68 | 2,600,755,329.68 | ||
| Total | 2,650,755,329.68 | 2,650,755,329.68 | 2,600,755,329.68 | 2,600,755,329.68 | ||
(1)Investmentsinsubsidiaries?Applicable?NotApplicable
| Investees | Openingbalance | Increase | Decrease | Closingbalance | Provisionforimpairmentmadeinthecurrentperiod | Closingbalanceofprovisionforimpairment |
| JiangsuYifeng | 150,000,000.00 | 150,000,000.00 | ||||
| ShanghaiYifeng | 4,650,000.00 | 4,650,000.00 | ||||
| JiangxiYifeng | 50,000,000.00 | 50,000,000.00 | ||||
| HubeiYifeng | 50,000,000.00 | 50,000,000.00 | ||||
| HunanYifengMedicine | 150,750,000.00 | 150,750,000.00 | ||||
| HubeiYifengMedicine | 100,000,000.00 | 100,000,000.00 | ||||
| JiangxiYifengMedicine | 100,000,000.00 | 100,000,000.00 | ||||
| WuhanLongtai | 66,646,000.00 | 66,646,000.00 | ||||
| ShaoguanXiangqin | 109,000,000.00 | 109,000,000.00 | ||||
| Guangshengtang | 34,933,000.00 | 34,933,000.00 | ||||
| YiliKangxin | 66,000,000.00 | 66,000,000.00 | ||||
| XinxingPharmacy | 1,444,786,329.68 | 1,444,786,329.68 | ||||
| YueyangYifeng | 11,690,000.00 | 11,690,000.00 | ||||
| HebeiXinxingPharmacyChainCo.,Ltd. | 9,100,000.00 | 9,100,000.00 | ||||
| YifengLuoshiXiehe | 28,600,000.00 | 28,600,000.00 |
/
| Investees | Openingbalance | Increase | Decrease | Closingbalance | Provisionforimpairmentmadeinthecurrentperiod | Closingbalanceofprovisionforimpairment |
| PingjiangYifeng | 10,500,000.00 | 10,500,000.00 | ||||
| TianjinXianhe | 8,100,000.00 | 8,100,000.00 | ||||
| JiuzhitangMedicine | 204,000,000.00 | 204,000,000.00 | ||||
| TianjinYifengPharmacyChainCo.,Ltd. | 2,000,000.00 | 2,000,000.00 | ||||
| HunanYifengPharmaceuticalHoldingCo.,Ltd. | 50,000,000.00 | 50,000,000.00 | ||||
| Subtotal | 2,600,755,329.68 | 50,000,000.00 | 2,650,755,329.68 |
(2)Investmentinassociatesandjointventures?Applicable?NotApplicable
(3)Impairmenttestingoflong-termequityinvestments?Applicable?NotApplicableOtherremarksNone
4.Operatingrevenue/Operatingcost
(1)Details?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative | ||
| Revenue | Cost | Revenue | Cost | |
| Mainoperations | 4,829,194,629.39 | 3,140,663,612.56 | 4,639,899,369.88 | 3,059,643,113.79 |
| Otheroperations | 340,438,944.46 | 13,840,211.04 | 202,256,450.46 | 30,123,957.74 |
| Total | 5,169,633,573.85 | 3,154,503,823.60 | 4,842,155,820.34 | 3,089,767,071.53 |
(2)Breakdownofrevenuefromcontractswithcustomersbymaincategories?Applicable?NotApplicableOtherremarks?Applicable?NotApplicable
(3)Informationrelatedtoperformanceobligations?Applicable?NotApplicable
(4)Transactionpriceallocatedtotheremainingperformanceobligations?Applicable?NotApplicable
(5)Significantchangesincontractsorsignificantadjustmentsontransactionprice?Applicable?NotApplicableOtherremarks
/
None
5.Investmentincome?Applicable?NotApplicable
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Investmentincomefromlong-termequityinvestmentsundercostmethod | 1,157,626,900.72 | 585,289,073.82 |
| Investmentincomefromfinancialinstruments | 51,263,378.57 | 15,587,350.75 |
| Including:Financialassetsclassifiedasatfairvaluethroughprofitorloss | 51,263,378.57 | 15,587,350.75 |
| Total | 1,208,890,279.29 | 600,876,424.57 |
OtherremarksNone
6.Others?Applicable?NotApplicableXX.Othersupplementaryinformation
1.Non-recurringprofitorloss?Applicable?NotApplicable
| Items | Amount | Remarks |
| Gainsondisposalofnon-currentassets,includingwrite-offofprovisionforimpairment | 47,641,839.34 | |
| Governmentgrantsincludedinprofitorloss(excludingthosecloselyrelatedtooperatingactivitiesoftheCompany,satisfyinggovernmentpoliciesandregulations,enjoyedbasedoncertainstandards,andcontinuouslyaffectinggainsorlossesoftheCompany) | 14,930,754.09 | |
| Gainsonchangesinfairvalueoffinancialassetsandfinancialliabilitiesheldbynon-financialenterprises,andgainsfromdisposaloffinancialassetsandfinancialliabilities,excludingthosearisingfromhedgingbusinessrelatedtooperatingactivities | ||
| Fundpossessionchargefromnon-financialentitiesandincludedinprofitorloss | ||
| Gainsonassetsconsignedtothethirdpartyforinvestmentormanagement | ||
| Gainsondesignatedloans | ||
| Lossesonassetsincurredduetoforcemajeuresuchasnaturaldisasters | ||
| Reversedprovisionforimpairmentofreceivablesbasedonimpairmenttestingonanindividualbasis | ||
| Gainsonacquisitionofsubsidiaries,jointventuresandassociatesduetothesurplusofacquisition-datefairvalueofnetidentifiableassetsinacquireeovertheacquisitioncost |
/
| Items | Amount | Remarks |
| Netprofitonsubsidiariesacquiredthroughbusinesscombinationundercommoncontrolfromthebeginningoftheperiodtothecombinationdate | ||
| Gainsonnon-cashassetsexchange | ||
| Gainsondebtrestructuring | ||
| One-offexpensesincurredduetothediscontinuationofrelevantoperatingactivities,suchasseverancepayments | ||
| One-offeffectsonprofitorlossduetoamendmentsoflawsandregulationsontaxation,accounting,etc. | ||
| Share-basedpaymentsrecognizedatonetimeduetocancellationormodificationofequityincentiveplan | ||
| Gainsarisingfromchangesinthefairvalueofemployeebenefitspayableafterthevestingdateforcash-settledshare-basedpayment | ||
| Gainsonchangesinfairvalueofinvestmentpropertieswithsubsequentmeasurementusingthefairvaluemodel | ||
| Gainsontransactionswithunfairvalue | ||
| Contingentgainsonnon-operatingactivities | ||
| Managementchargesforconsignedoperations | ||
| Othernon-operatingrevenueorexpenditures | -17,587,789.91 | |
| Otherprofitorlosssatisfyingthedefinitionofnon-recurringprofitorloss | ||
| Less:Enterpriseincometaxaffected | 10,257,785.41 | |
| Non-controllinginterestaffected(aftertax) | 3,231,645.57 | |
| Total | 31,495,372.54 |
RemarksontheexceptionthattheCompanyrecognizednon-recurringprofitorlossaslistedinthe“InterpretationPronouncementonInformationDisclosureCriteriaforPublicCompaniesNo.1–Non-RecurringProfitorLoss(2023Edition)”asrecurringprofitorlossbasedonrelevantdefinitionandprincipleareasfollows:
?Applicable?NotApplicable
| Items | Amount | Reasons |
| Investmentincomefromfinancialinstruments | 89,506,157.27 | Relatedtoordinarycourseofoperatingactivities |
Otherremarks?Applicable?NotApplicable
2.ROEandEPS?Applicable?NotApplicable
| Profitofthereportingperiod | WeightedaverageROE(%) | EPS(yuan/share) | |
| BasicEPS | DilutedEPS | ||
| Netprofitattributabletoshareholdersofordinaryshares | 14.67 | 1.26 | 1.24 |
/
| Profitofthereportingperiod | WeightedaverageROE(%) | EPS(yuan/share) | |
| BasicEPS | DilutedEPS | ||
| Netprofitattributabletoshareholdersofordinarysharesafterdeductingnon-recurringprofitorloss | 14.37 | 1.24 | 1.22 |
3.Differencesinaccountingdataunderdomesticandforeignaccountingstandards?Applicable?NotApplicable
4.Others?Applicable?NotApplicable
ChairmanoftheBoard:GaoYi
April28,2025